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Fiscal Year 2022 Monroe County, Florida Property Appraiser Financial Statements, Required Supplementary Information and Supplementary Reports As of and for the Year Ended September 30, 2022 and Reports of Independent Auditor Contents Independent auditor `s report 1-3 Financial statements Balance sheet—general fund 4 Statement of revenues, expenditures and changes in fund balances—general fund 5 Notes to financial statements 6-14 Required supplementary information (unaudited) Schedule of revenues and expenditures— budget and actual—general fund 15 Supplementary reports Report of independent auditor's report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards 16-17 Independent auditor's management letter 18-19 Report of independent accountant on compliance with local government investment Policies 20 1111�111�11� II�>��IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII RSM Report of Independent Auditor To the Honorable Scott Russell Property Appraiser of Monroe County, Florida Report on the Audit of the Financial Statements Opinion We have audited the financial statements of the Monroe County, Florida Property Appraiser (the Property Appraiser), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Property Appraiser's financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the major fund of the Property Appraiser as of September 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Supervisor and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter Basis of Presentation As discussed in Note 1, the accompanying financial statements of the Property Appraiser were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Government Entity Audits. They do not purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2022, and the changes in their financial position and, where applicable, cash flows thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. As discussed in Notes 6 to the financial statements, the Property Appraiser adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases as of October 1, 2021. As a result, lease liability and related right of use assets were restated. Our opinions are not modified with respect to this matter. P O Vifl,,.R (31° V h E alIA3 d.A 14 D E R 0()N.1 /1<<JJ bl1 iA X l C N f lS Luf ifI'q(.:,I 1 f"�r✓ ili ;II- r;vF ,Al,I Li 'A le U".[a I IJ;i'% ;f ,I,I�aI ry,ra il.a�f I�1 r3, 0,r60 n,�,i�l ,ii9.ir,,,f ✓.c, mw.rI, a "'i1 i;h�: Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that budgetary comparison schedules be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management `s responses to our inquiries, the financial statements and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2023, on our consideration of the Property Appraiser's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the Supervisor's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control over financial reporting and compliance. Fort Lauderdale, Florida March 30, 2023 3 FINANCIAL STATEMENTS Monroe County, Florida Property Appraiser Balance Sheet—General Fund September 30, 2022 Assets Cash $ 1,494,144 Prepaid expenses 450 Total assets $ 1,494,594 Liabilities and Fund Balances Liabilities: Accounts payable $ 36,090 Accrued wages and benefits payable 110,804 Due to Board of County Commissioners 1,220,896 Due to other governmental units 126,804 Total liabilities 1,494,594 Fund balances: Nonspendable 450 Unassigned (450) Total liabilities and fund balances - The accompanying notes to the financial statemetns are an integral part of this statement. 4 Monroe County, Florida Property Appraiser Statement of Revenues, Expenditures and Changes in Fund Balances—General Fund Year Ended September 30, 2022 Revenues: Intergovernmental: Board of County Commissioners $ 4,452,516 Charges for Services: Other taxing districts 462,444 Investment income 1,396 Miscellaneous 113 Total revenues 4,916,469 Expenditures: Current: Personnel services 2,595,477 Operating expenditures 1,078,510 Debt service: Principal 19,634 Interest and other charges 855 Capital outlay 40,039 Total expenditures 3,734,515 Excess of revenues over expenditures 1,181,954 Other financing uses: Transfers to Board of County Commissioners (1,220,896) Lease financing 38,942 Total other financing uses (1,181,954) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year $ - The accompanying notes to the financial statemetns are an integral part of this statement. 5 Monroe County, Florida Property Appraiser Notes to the Financial Statements Note 1. Nature of Entity and Significant Accounting Policies Financial Reporting Entity—The Monroe County, Florida Property Appraiser (the Property Appraiser) is a separately elected county official established pursuant to the Constitution of the state of Florida. These financial statements present only the Property Appraiser's Office and do not purport to reflect the financial position or the results of operations of Monroe County, Florida (the County)taken as a whole. The financial statements of the Property Appraiser have been prepared in accordance with the accounting principles and reporting guidelines established by the Governmental Accounting Standards Board (GASB). Entity status for financial reporting purposes is governed by GASB Statement No. 14, as amended. Although the Property Appraiser's office is operationally autonomous, it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, under GASB guidelines, the Property Appraiser is reported as a part of the primary government of Monroe County, Florida. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Monroe County, Florida Annual Comprehensive Financial Report. Measurement Focus, Basis of Accounting and Financial Statement Presentation—The Property Appraiser's financial statements are prepared for the purpose of complying with Florida Statute 218.39(2), and Chapter 10.550, Rules of the Auditor General (the Rules), which require the Property Appraiser to only present special purpose fund financial statements. The General Fund is used to account for all revenues and expenditures applicable to the general operations of the Property Appraiser that are not legally required or by accounting principles generally accepted in the United States of America (U.S. GAAP)to be accounted for in another fund. The General Fund is presented as a major governmental fund and uses the current financial resources, measurement focus, and the modified accrual basis of accounting. Revenues are recognized when measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences, debt service, pension and other post- employment benefits and claims and judgements are recorded only when they are due and payable. The extent to which General Fund revenues exceed expenditures is reflected as transfers out and as liabilities to the County Board of County Commissioners (the Board)and other governmental agencies in the same proportion as fees paid by each governmental unit to total fees earned by the Property Appraiser. Budgetary Requirements—General Fund expenditures are controlled by budget appropriations in accordance with the requirements set forth in the Florida Statutes. The budget is prepared on a basis consistent with U.S. GAAP. Cash—The Property Appraiser's cash consists of demand deposits. All cash is insured by the Federal Deposit Insurance Corporation or covered by the state of Florida collateral pool, a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. 6 Monroe County, Florida Property Appraiser Notes to the Financial Statements Note 1. Nature of Entity and Significant Accounting Policies (Continued) Capital Assets—Tangible personal property used in the Property Appraiser's operations is recorded as expenditures in the General Fund at the time assets are received and a liability is incurred. Purchased assets are capitalized at historical cost in the government-wide financial statements of the County. In addition, the Board provides office space used by the Property Appraiser at no charge. Compensated Absences—The Property Appraiser permits employees to accumulate earned but unused vacation and sick pay benefits. The Property Appraiser is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation for compensated absences is accrued in the government-wide financial statements of the County. A summary of activity for the Property Appraiser's compensated absences obligation is as follows: Balance, October 1, 2021 $ 191,496 Additions 230,771 Deletions (228,738) Balance, September 30, 2022 $ 193,529 Fund Balance Presentation— In accordance with GASB Statement No. 54, the fund balances of the governmental funds are classified as restricted or committed. This classification includes amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors or the laws or regulations of other governments. Non-Spendable Fund Balance— Includes amounts that cannot be spent because they are either not in spendable form, or for legal or contractual reasons, must be kept intact. This classification includes inventory. Spendable Fund Balance— Restricted— Includes amounts that are constrained for specific purposes which are externally imposed by providers (such as grantors or creditors)or enabling legislation. Committed— Includes amounts that are constrained for specific purposes that are internally imposed by the highest level of decision-making authority, which in this case is the Property Appraiser. There were no committed balances at year end. Assigned— Includes amounts that are intended to be used for specific purposes that are not restricted or committed. Assignments can be made at the direction of the Property Appraiser. Unassigned— Represents fund balance that has not been assigned to other funds, and that has not been restricted, committed or assigned to specific purposes within the general fund. 7 Monroe County, Florida Property Appraiser Notes to the Financial Statements Note 1. Nature of Entity and Significant Accounting Policies (Continued) Leases—The Property Appraiser is a lessee for noncancellable building and equipment leases. At the government-wide level, in the governmental activities opinion unit, the County recognizes a lease liability and an intangible right-to-use lease asset (lease asset). At the commencement of a lease, the Property Appraiser and the County initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. At the fund level, the Property Appraiser recognizes an expenditure and other financing source in the period the lease is initially recognized. Key estimates and judgments related to leases include how the Property Appraiser and County determines: (1)the discount rate it uses to discount the expected lease payment to present value, (2) lease term, and (3) lease payments. • The Property Appraiser and County use the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the Property Appraiser and County generally use its estimated incremental borrowing rate as the discount rate for the leases. • The lease term includes the noncancellable period of the lease. Lease payments include the measurement of the lease liability and are composed of the fixed payments and purchase option price that the Property Appraiser and County is reasonably certain to exercise. New Accounting Pronouncement— Effective October 1, 2021, the Property Appraiser adopted the provisions of GASB Statement No. 87, Leases. The objective of this statement is to better meet the informational needs of financial statement users by improving accounting and financial reporting for leases by governments. The requirements of this statement are effective for reporting periods beginning after December 15, 2021, as postponed by GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The adoption of this statement did not affect beginning fund balance, but it required additional reporting of all lease related amounts and additional lease related disclosures. The following are new accounting pronouncements that have been issued but are not yet effective: GASB Statement No. 96, Subscription-Based Information Technology Arrangements. GASB Statement No. 96 provides accounting and financial reporting guidance for subscription-based information technology arrangements (SBITAs). It is based on the standards established in Statement No. 87, Leases. It: • Defines a SBITA as a contract that conveys control of the right to use a SBITA vendor's IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction; • Requires governments with SBITAs to recognize a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability(with an exception for short-term SBITAs—those with a maximum possible term of 12 months); and • Provides guidance related to outlays other than subscription payments, including implementation costs, and requirements for note disclosures related to a SBITA. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022. 8 Monroe County, Florida Property Appraiser Notes to the Financial Statements Note 1. Nature of Entity and Significant Accounting Policies (Continued) GASB Statement No. 99, Omnibus 2022. The requirements of this Statement are effective as follows: The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance. The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged and is permitted by topic. GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Effective Date: For fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Effective Date: The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. Management is in the process of determining what impact, if any, implementation of the above statements may have on the financial statements of the Property Appraiser. Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from estimates. Subsequent Events—The Property Appraiser has evaluated subsequent events through March 30, 2023, in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. Note 2. Deposits and Investments The Property Appraiser follows Florida Statutes for its investment policy, which authorizes investments in certificates of deposit, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, and obligations of the U.S. government and governmental agencies unconditionally guaranteed by the U.S. government. 9 Monroe County, Florida Property Appraiser Notes to the Financial Statements Note 2. Deposits and Investments (Continued) Cash and cash equivalents to include demand deposits insured by the Federal Deposit Insurance Corporation or covered by the State of Florida collateral pool, a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. At September 30, 2022, cash included demand deposits with a carrying amount of$1,494,144 and a bank balance of $1,508,572. Note 3. Retirement System Plan Description—The Property Appraiser 's employees participate in the Florida Retirement System (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (Pension Plan) and the Retiree Health Insurance Subsidy (HIS Plan). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (Investment Plan) alternative to the FRS Pension Plan, which is administered by the State Board of Administration. As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college or a participating city or special district within the state of Florida. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida Legislature. Benefits under the Pension Plan are computed on the basis of age, average final compensation and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service, or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.60% of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.00% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers' class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.00% (3.33% for judges and justices)of their final average compensation based on the five highest years of salary for each year of credited service. Substantial changes were made to the Pension Plan during fiscal year 2011, affecting new members enrolled on or after July 1, 2011 by extending the vesting requirement to eight years of credited service and increasing normal retirement to age 65 or 33 years of service regardless of age. Also, the final average compensation for these members is based on the eight highest years of salary. The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Eligible retirees and beneficiaries receive a monthly health insurance subsidy payment of$5 for each year of creditable service, with a minimum payment of$30 and a maximum payment of$150 per month. The HIS Plan is funded by required contributions from FRS participating employees as set forth by the Florida Legislature, based on a percentage of gross compensation for all active FRS members. 10 Monroe County, Florida Property Appraiser Notes to the Financial Statements Note 3. Retirement System (Continued) In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP). This program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants. For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occurs at one year of service. These participants receive a contribution for self-direction in an investment product with a third-party administrator selected by the State Board of Administration. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06%of payroll and by forfeited benefits of plan members. The Property Appraiser recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan, the defined contribution plan, and the HIS Plan amounting to $214,079, $91,698 and $34,111, respectively, for the fiscal year ended September 30, 2022. The Property Appraiser's payments for the Pension Plan and the HIS Plan after June 30, 2022, the measurement date used to determine the net pension liability associated with the Pension Plan and HIS Plan, amounted to $82,095 and $8,943, respectively. The Property Appraiser is not legally required to and does not accumulate expendable available resources to liquidate the retirement obligation related to its employees. Accordingly, the net pension liability and associated deferred outflows and deferred inflows are presented on the government- wide financial statements of the County, following requirements of GASB Statement 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement 27, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement 68, effective October 1, 2014. Funding Policy—All enrolled members of the FRS Pension Plan are required to contribute 3.00% of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates. The employer contribution rates by job class for the periods from October 1, 2021 through June 30, 2022 and July 1, 2022 through September 30, 2022, respectively, were as follows: regular— 10.82% and 11.91%; county elected officers —51.42% and 57.00%; senior management—29.01% and 31.57%; and DROP participants— 18.34% and 18.60%. During the fiscal year ended September 30, 2022, the Property Appraiser contributed to the plan an amount equal to 16.54% of covered payroll which totaled $379,115. 11 Monroe County, Florida Property Appraiser Notes to the Financial Statements Note 3. Retirement System (Continued) The state of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the state of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000. That report may be viewed on the Florida Department of Management Services website located at www.dms.mvflorida.com/workforce operations/retirement/publications. Note 4. Other Post-Employment Benefit Plan (OPEB) In addition to the pension benefits described in Note 3, the Property Appraiser offers to its employees a single-employer defined benefit healthcare plan,which is administered by the Board. Florida Statute 112.0801 requires the County to provide retirees and their eligible dependents with the option to participate in the OPEB Plan if the County provides health insurance to its active employees and their eligible dependents. The OPEB Plan provides medical coverage, prescription drug benefits, and life insurance to both active and eligible retired employees. The OPEB Plan does not issue a publicly available financial report. No assets are accumulated in a trust that meets the criteria as set forth in GASB Statement 75, Accounting and Financial Reporting for Post-employment Benefit Plans Other Than Pensions. The Board may amend the OPEB Plan design, with changes to the benefits, premiums and/or levels of participant contribution at any time. On at least an annual basis, in an open session, and prior to the annual enrollment process, the Board approves the rates for the coming calendar year for the retiree and County contributions. Eligibility for post-employment participation in the OPEB Plan is limited to full-time employees of the County, and the Constitutional Officers. An employee who retires as an active participant in the OPEB Plan and was hired on or after October 1, 2001 may continue to participate in the OPEB Plan by paying the monthly premium established annually by the Board. An employee who retires as an active participant in the plan, was hired prior to October 1, 2001, has at least ten years of full-time service with the County, and meets the retirement criteria of the FRS but is not eligible for Medicare, may maintain group health insurance benefits with the County following retirement, provided the retiring employee contributes the amounts shown in the table below. Contribution as Percentage of Annual Actuarial Rate(') Plan Years of Service with Monroe County Year 25+ 20-24 10-19 2018 HIS(2) 17% 18% 2019 HIS 18% 26% 2020 HIS 20% 34% 2021 HIS 22% 42% 2022 &Thereafter HIS 25% 50% The new retiree contributions began a five-year phased-in approach beginning January 1,2018. (2) Participation in the Plan is at a cost equal to the FRS Health Insurance Subsidy (HIS)for ten years of service (currently$5 per month for each year of service credit at retirement with a minimum HIS payment of$30 and a maximum HIS payment of$150 per month). 12 Monroe County, Florida Property Appraiser Notes to the Financial Statements Note 4. Other Post-Employment Benefit Plan (OPEB) (Continued) Retirees who have met the requirements for early retirement, have not achieved age 60 and whose age and years of service do not equal 70 (rule of 70) must pay the standard monthly premium until the age criteria or the rule of 70 is met. At that time, the retiree's cost of participation will be based on the preceding table. Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are met. An employee who retires as an active participant in the plan, was hired prior to October 1, 2001, has at least ten years of full-time service with the County, and meets the retirement criteria of the FRS and is eligible for Medicare at the time of retirement or becomes eligible for Medicare following retirement, may maintain group health insurance benefits with the County following retirement, provided the retiring employee contributes the Actuarial Rate for Medicare retirees as determined by the actuarial firm engaged by the County, less a$250 per month County subsidy. Alternatively, retirees meeting these criteria may elect to leave the County health plan and receive a$250 per month payment from the County, payable for the lifetime of the retiree. The Board engages an actuarial firm on a biannual basis to determine the County's accrued total OPEB liability. The Property Appraiser has no responsibility to the OPEB Plan other than to make the periodic payments determined by the Board,which are presented as expenditures when made and amounted to $80,460 for the year ended September 30, 2022. Further information about the OPEB Plan is available in the County's Annual Comprehensive Financial Report which is published on the Clerk's website at www.clerk-of- the-court.com. Note 5. Risk Management The Property Appraiser is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and natural disasters. The Property Appraiser participates in the coverage provided by the Board for Workers' Compensation, Group Insurance and Risk Management internal service funds. Under these programs, Workers' Compensation provides $500,000 coverage per claim for regular employees. Workers' Compensation claims in excess of the self-insured coverage are covered by an excess insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $200,000 self-insured retention and building property damage is covered for the actual value of the buildings with a deductible of$50,000. Deductibles for windstorm and flood vary by location. The County purchases commercial insurance for claims in excess of coverage provided by the funds and for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years. The Property Appraiser makes payments to the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. Note 6. Lease Commitments The Property Appraiser leases various office equipment under cancelable arrangements that qualify as other than short-term leases under GASB No. 87 and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. 13 Monroe County, Florida Property Appraiser Notes to the Financial Statements Note 6. Lease Commitments (Continued) The Property Appraiser had eight lease agreements for the year ending September 30, 2022. The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2022, were as follows: Balance Balance 10/1/2021 Additions Deductions 09/30/2022 Lease liability $ 27,032 $ 38,942 $ (19,634) $ 46,340 Principal Interest Total Fiscal years ending September 30: 2023 $ 24,318 $ 1,179 $ 25,497 2024 13,669 783 14,452 2025 8,353 683 9,036 Totals 46,340 2,645 48,985 Note 7. Litigation The Property Appraiser is a party from time to time in various lawsuits and other claims incidental to the ordinary course of its operation, some of which are covered by the Board's self-insurance program. While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on the Property Appraiser's financial position. 14 REQUIRED SUPPLEMENTARY INFORMATION (Unaudited) Monroe County, Florida Property Appraiser Schedule of Revenues and Expenditures Budget and Actual—General Fund Year Ended September 30, 2022 General Fund Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental: Board of County Commissioners $ 4,450,263 $ 4,452,516 $ 4,452,516 $ - Charges for services: Other taxing districts 462,209 462,444 462,444 - Investment income - - 1,396 1,396 Miscellaneous - - 113 113 Total revenues 4,912,472 4,914,960 4,916,469 1,509 Expenditures: Current: Personnel services 3,583,778 3,586,266 2,595,477 990,789 Operating expenditures 1,252,594 1,252,594 951,706 300,888 Debt service: Principal - - 19,634 (19,634) Interest and other charges - - 855 (855) Capital outlay 76,100 76,100 40,039 36,061 Total expenditures 4,912,472 4,914,960 3,607,711 1,307,249 Excess of revenues over(under) expenditures - - 1,308,758 (1,308,758) Other financing uses: Transfers to Board of County Commissioners - - (1,220,896) (1,220,896) Lease financing - - 38,942 38,942 Transfers to other governmental units - - (126,804) (126,804) Total other financing uses - - (1,308,758) (1,308,758) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year - - - - Note: For financial reporting purposes in the fund financial statements the transfer of excess fees to other governments outside the County is reported as an operating expenditure and above they are shown as a transfer to other governments for budget purposes since they are not a budgeted item. 15 SUPPLEMENTARY REPORTS 1111�111�11� II�>��IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII RSM Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Scott Russell Property Appraiser of Monroe County, Florida We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the major fund of the Monroe County, Florida Property Appraiser(the Property Appraiser)as of and for the year ended September 30, 2022, and the related notes to financial statements, and have issued our report thereon dated March 30, 2023. Our report included an emphasis of matter paragraph to reflect that these financial statements were prepared to comply with Section 218.39, Florida Statutes, and Chapter 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits and are intended to present the financial position and the changes in financial position of the Property Appraiser and do not represent a complete presentation of the financial statements of Monroe County, Florida. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser's internal control over financial reporting (internal control)as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser's internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Property Appraiser's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. P O Vifl,,.R (31° V h E alIA3 d.A 14 D E R 0()N.1 /"<<<a.J l b l 1 IA X, C D S L)f i I IN(",I 16 f"�r✓ ili ;II- r;vF ,Al,I Li 'A le U".[a I IJ;i'% ;f ,IJ,I . ,ra il.of dIlf (113, 0,r60 hn,�hlml ✓.c, mw.rI, a "'i1 i; Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Property Appraiser's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Fort Lauderdale, Florida March 30, 2023 17 1111�111�11� II�>��IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII RSM Independent Auditor's Management Letter in Accordance with the Rules of the Auditor General of the State of Florida To the Honorable Scott Russell Property Appraiser of Monroe County, Florida Report on the Financial Statements We have audited the financial statements of the Monroe County, Florida Property Appraiser (the Property Appraiser), as of and for the year ended September 30, 2022, and we have issued our report thereon dated March 30, 2023. Auditor 's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, and Report of Independent Accountant on Compliance with Local Government Investment Policies regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 30, 2023, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The Property Appraiser is a separately elected county official established pursuant to the Constitution of the state of Florida. There are no component units related to the Property Appraiser. Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. 71,.1 V.M P O VI E" (31° V h E alIA3 d.A 14 D E R 0()N.1 /"<<<a.J l b l 1 IA X, C 0 S L)f i f N(.:,I 18 f"�r✓ ili ;II- r;vF ,Al,I Li 'A le U".[a I IJ;i'% ;f ,IJ,I . ,ra il.of dIlf (113, 0,r60 hn,�hlml ✓.c, mw.rI, a "'i1 i; Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires that we communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose. Fort Lauderdale, Florida March 30, 2023 19 1111�111�11� II�>��IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII RSM Report of Independent Accountant on Compliance with Local Government Investment Policies To the Honorable Scott Russell Property Appraiser of Monroe County, Florida We have examined the Monroe County, Florida Property Appraiser's (the Property Appraiser)compliance with the local government investment policy requirements of Section 218.415, Florida Statutes, during the period from October 1, 2021 to September 30, 2022. Management of the Property Appraiser is responsible for the Property Appraiser's compliance with the specified requirements. Our responsibility is to express an opinion on Property Appraiser's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Property Appraiser complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Property Appraiser complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser's compliance with the specific requirements. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. In our opinion, the Property Appraiser complied, in all material respects, with the local investment policy requirements of Section 218.415, Florida Statutes, during the period October 1, 2021 to September 30, 2022. The purpose of this report is to comply with the audit requirements of Section 218.415, Florida Statutes, and Rules of the Auditor General. Fort Lauderdale, Florida March 30, 2023 /"<<<a.J l b l 1 IA X, C D S Uu i f N(.:,I 20 f"�r✓ ili ;II- r;vF ,Al,I Li 'A le U".[a I IJ;i'% ;f ,IJ,I . ,ra il.of dIlf (113, 0,r60 hn,�hlml ✓.c, mw.rI, a "'i1 i;