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Fiscal Year 1998 MONROE COUNTY, FLORIDA PROPERTY APPRAISER FINANCIAL STATEMENTS' SEPTEMBER 30, 1998, KEMP & GREEN, P.A. CERTIFIED PUBLIC ACCOUNTANTS CONTENTS Independent Auditors' Report` Im2. Financial Stat6m nts Combined alanc Sheet a A11 'Fu d Types and Account Groups3 Statement-of RRevenues, 'Expenditures., and Changes in Fund Balance. -, Gen rgal Fury Statement of Revenues, Expenditures and Ch ng s in Fund Balance m Budgqt and ,Actual (BudgetaryBasis) General Fun Notes to Financial Statements .:4 Othr9..R its e Independent Auditors Report on Compliance and on Internal Control over Financial Reporting I2- 3 Independent Auditors` Management Letter` I4-15 GREEN, P.A. Certified Public Accountants 1438 KENNEDY DRIVE P. o. BOX 1529 KEY WEST,,FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE M. o, KEMP, ,P:A, ( 5) 294-2581 D FLORIDA INSTITUTE F R eR A E. GREEN, C.P.A. FAX # (305)294- 773 CERTIFIED PUBLIC AOCOONTANTS. INDEPENDENT AUDITORS' REPORT r. Ervin Q i.g Property Appraiser Monroe County9 . Florida We have audited the financial statements of' the Property Appraiser of Monroe County,, Flo ida ("Property Appraiser") as, f epte ber 30, 199 .'and for the year then ended, as., listed in the accompanying table of ,contents. These financial statements are the responsibility -of the Property Appraiser. Our responsibility is to' express an opinion on these financial statements based on our audit. e conducted' our audit in accordance 'with generally accepted anditi g standards and Governiflent ,Auditing Standards, issued by the Comptrdl 1 er General of the United States. These standared$ require that we plan and perform the audit to obtain reasonable assurance about, whether the financial statements are free of material misstatement. An audit -includes examining, on a test basis, evidence supporting the amounts- and disclosu e in the financial statements.- An audit also includes assessing the, accounting`prIingi les used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our- audit provides a reasonable basis for our opinion> As discussed in Note 1, the financial statements present only the Property Appraiser and are not intended t present fairly the financial position of ,Monroe County, loci a an the results o operations n cash _flows of its proprietary fund types in conformity with generally accepted accounting* principles. In our opinion, the financial statements referred to ab6ve resent fairly', in all mater°ial. respectsf the' financial. pbsition of the Property Appraiser as of September 30, 1993 ante results o 'its ,o erations for the year then' nded in conformity pith generally accepted accounting principles. 1 In accordance with rnnent Auditing Standards, we have also i ss d A report dated February 11, 1999 on our cons I'd ration, of the Property Appraiser's ,internal control over financial reporting, and r'tests of its do rpTianc with certain provisions of laws, regulations, contracts and grants. PA- Kemp Green, P.A. C rti fi d P bl i Accountant's February ,1$ 1999. 2 MONROE COUNTY, FLORIDA TM PROPERTY APPRAISER COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS SEP'CEMBER 30, 1996 Governmental Account Fend Type Grod .. `Totals Long'-T r � 6 oran- .Oor€oral Debt Agj bnly . Assets. Cash and Investments312,432 - $ 312,432 Prepaid Expenses 301 - 301 Amount to be Provided 106,843 106,843, Total Assets' 312,7 106 6 '; 19,57 Liabilities. Accounts Payable 37,593 - 7,593 Accrued Wages And Benefits Payable- 35,216 3 , -1: Due .to Other Governments 90,927 - 90,927 Due to Individuals - Long-Term Debt 106,843 -10 ,6 3' Total Liabilities 163,736 106,843 270,579 Fund Balance 148,997 148,997 Total Lia i1iti s and Fund Balance 31 3 101643 419a7 The aoob panyirrg notes are an integral part of these financial statements 3- MONROE COUNTY, FLORIDA PROPERTY APPRAISER STATEMENT OF REVENUES, EXPENDITURES, AND .CHANGES IN FUND BALANCE - GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 1998 Revenues: Board of County.Commissioners $ 1,917,364 Other Taxing ,Districts 341,649 Interest Income .13,940 Miscellaneous 20,841 Total Revenues 2,293,794. Expenditures: Current: General Government: Personal Services 1,669,165 Operating`Expenses497,079 Capital Outlay - 160,404 Total Expenditures 2,326,648 Expenditures in Excess of Revenue (32,854) Fund-Bal`ance, Beginning of Year 181,851 Fund Balance, End of Year 148 997 The accompanying notes are. an integral part of these financial statements -4- MONROE CQU ,-FLORIDA PROPERTY APPRAISER STATES OF REVENUES D EXPENDITUREa CH ES IN FUND BALANCE BUDGET AND ACTUAL (BUDGET Y BASIS) a GENERAL FUND FOR THE YEAR ENDED SEPTE BER 30, 199E Actual Variance (Budgetary Favorable Eg et: Easis) (Unfavorable) Revenues Board of County Co issioners 2e102,g94 1,917®364 (185,585) Other Taxing 6'stricts 364„016 338,87E (25,138) Interest Income R 13,940, 13,940 Miscellaneous.' 0a341 0s041 Total Revenues- 2a466,965 2,291,023 (175, 42) 'Expenditures: 'Current: General vernment: Personal Services 1,882,946 1gi 61e361` 220,085 . Operating Expenses 5100499 527,523 ( 7a0 4) Capital Outlay ' 5e120 160,404 (95,284) Total Expenditures 2 45 e565 2,350.70E (107,777) Excess of Revenues Overt (Under) Expenditures a400 (59m7 5) (68,165Y , Other Financing (Uses); Reserve fdr,Contingehc es (8,400). ®400 Excess of Revenues (Under) Expenditures and Other Uses (59Q 65) , (59,765) Adjustments: To-Adjust Expenditures for Accruals 24,140 24,140 TO.Adjust Revenues for'Ancruals 2,771 2,771 ucess 'of Expenditures Over Revenges GAAP Basis of Accounting (32®E54) (32,854) Ford Balance',-Beginning of Year 151,8 1` 181,851 Fund Balance, End of Year IB1.B1 148.97 (32:E54j The accompanying notes are an integral part of these financial statements.. _5® ONROE COUNTY',,-FLORIDA PROPERTY APPRAISER NOTES TO FINANCIAL STATEMENTS ETR 38 1998 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The- following, is a summary of the significant accounting principles and policies -used in the preparation of these financial statements, d ortin Entity The Property Appraiser of Monroe County, Florida ("Pr°operty Appraiser") is a separate Constitutional Officer as provided by the laws- f the State of Florida. For, financial reporting purposes, it is deemed to a arf of the County°s primary government, and therefore is included as such in the MonroeCountly Comprehensi,ve Annual Financial Report. Basis of Presentation a These financial, tater nts. have been prepared in conforrit ,with the.accounting principles and reporting guidelines established by. the Governmental Accounting Standards Board' . Property, Appraiser utilizes the following fund types and account groups®. ,, Governmental Fund Types The General Fund This fund is used o 'account for all revenue and e enditures, appl dabl'd _to the general operations—of the Property Appraiser , that are not required either legally or y generally accepted, accounting - principles s °incipl to be accounted for in another fund.. Account Group: drreral Lon -Tarr. Debt Account Group . - This account group s established to account for the long-term' debt of the Property Appraiser financed from governmental funds. Oasis of Accounting n. The modified accrual basis of .accounting is followed by the General Fund. Under the modified ccrual basis of accounting, revenues are recorded when received or when susceptible to accrual that is—measurable, and available to finance The Property Appraiser's operations Expenditures are recorded when .the liability is incurred except for accumulated sick pay and vacation pay which is not recorded s an expenditure. Budgets are prepared on the cash basis. -6- O ROE COUNTY, FLORIDA PROPERTY APPRAISER NOTESTO FINANCIAL STATEMENTS SEPTEMBER 3m 199 NOTE 1. - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) u get. y e u recent Expenditures _are controlled 'by appropriations in accordance with the budge requirements et 'forth in the Florida Statutes. The budgeted revenues :and" expenditures in .the accompanying financial statements reflect all approved aer�drnents a General Fixed Assets - The -tangible personal property used by the Property Appraiser in its opera ions is shown in the General Fixed. Assets Account Group of the 'Board of County Commissioners. -In addition, the office space are certain other expenditure itemsused in the Property, Ap raiser 's; operations are provided at no cost by the Board of County 'Com issioners. Undistributed Excess Fees - Florida Statutes provide that assessed fee revenue collected by the Property Appraiser' in excess' of expenditures shall b , retained and applied to next year®.s - operating costs. The amount' of undistributed excess fees at the end of each year applicable tothe Board of County Commissioners of Monroe_ County is reporte ;as fund balance. Coenated Absences d The Property Appraiser's policy grants employees annual leave and sick ,leave in 'varying amounts® Upon termination of employment, employees with six 'months or more of credited service can receive .payment for accumul ated annual leave. In general i ck leave payments are .granted upon 'termination of employment to employees with five years .or more of credited service.'' The maximum payment is subject to percentages and maximum hour limitations. Accumulated sick leave is -accrued to the extent that such amounts would normally- be 'liquidated with expendable available financial resources. The remaining liability is reflected ire the General Long-Ter Debt- Account Croup, Total Columns- on Combined Statements - The column entitled "Totals (Memorandum Only)" of this report is included for informational purposes only. This total column is not comparable to consolidated financial information, as the basic reporting entity is by fund type., and the various funds use different bases -of accounting. In addition® interfund type eliminations have not been made in arriving at the mounts included in this column. w7- ONE COUNTY, FLORIDA PROPERTY APPkAISER NOTES TO FINANCIAL STATEMENTS' SEPTEMBER 30, 1998 NOTE 2 - `CASH AND INVESTMENTS Cush and investments at 8 ep em er 0, 1998-consist of the following: Demand Deposits 1--312,432 Demand and time deposits.are fully insured in, accordance with Florida Statute 280, which established the multiple financial institution collateral pool . Legally, permissible investments are defined by Florida- Statute 125e31' and primarily consist of federal and State securities. ATE 3 L6%G TERM DEBT The following is a summary -of' changes in long-term, debt for the .year ended September 30, 19 Accrued Compensated` Absences Long Teri Debt, Beginning of Year 125.818 -Debt Retired 18,97 Long Term-Debt, End of Year $ 106,84 NOTE 4 LEASE OBLIGATIONS The Property Appraiser pays rent under cancelable operating leases for office equipment. Rental expense for the current year amounted to $13,100. -g- MONROE COUNTY. FLORIDA PROPERTY APPRAISER NOTES TO FINANCIAL-STATEMENTS' SEPTEMBER 30, 1998 OTE 5 - RETIREMENT PLAN Substantially all full -time Property. Appraiser employees are participants in the: Florida Retirement System ('1hg System") a multiple-employer, cost- sharing public retirement system. The System, -which is controlled by the Stag 1. gislature and administered by the Stag of Florida, Department of Administrations Division of Retirement,- covers approximately 600,40 full-time e ployees of various governmental uniis 'within the Stag of Florida. The System provides for -vsting of- benefits after 10 years of creditable service. Norval retirement benefits are_ available, to employees retirement who retire at or after age 62 -with 1. or more years f service. Early tirement' is available after 10 years. of service with a 5 reduction of benefits- 'for each year prior to normal retirement age. Retirement benefits are based upon ages ayera e compensation and yearsmo -service credit where average compensation is computed as the average of an individual,,s five highest .years ` earrings. Employees are not required to contribute to the System. The Property Appraiser hasano responsibility to the System other than to Make the periodic payments required by state statutes. The ,;Flonida Division of Retirement issues "°a publ.iofy_ available, financial report- that irr lodes ,,,financial statements and required, supplementary information for the System. The report may be obtained by writing to Florida Division of Retire rat, 2639 Monroe Street, Building C, Tallahassee, FL 3239-1560. Participating employer6 contributions are based upon state-wide rates established' by the State of Florida. -These rates are applied to 'employee salaries as fol l oars m ',,regular er pl oyees, 16.45 special risk employees, .32 s and elected officials, 27.93 . The Property--Appraiser's -contributions rude dori'n , the" years ended Septe rber 30, 1998, 1§97 and 106 were $235,40 , -$23i,306 and 22, 00, respectively, equal to the actuarially determined 'Contribution requirements for each year. NOTE 6 - DEFERRED COMPENSATION- PLAN The Property Appraiser offers its employees a deferred compensation plan created in accordance with Internal Revenue Code' Section 457. The. plan, - MOlROE COUNTY, FLORIDA PROPERTY APPRAISER NOTES TO FINANCIAL ,STATEMENTS SEPTEMBER ,30, 195 nNOTE 6 DEFERRED COMPENSATION P (Continued) .- available to all Property Appraiser employees, permits t ;to defer portion f their' salary- until future years. Participation in the Plan is opti real The deferredcompensation is- net available t 'employees until termination, retirement- death, or unforeseeable emergencies, Effective January 1, 1997, Federal legislationconverted the Section 457 deferred compensation assets from the Proper Appraiser ,asses t playas assets. Asa result f these changes, plan assets are n longer subject t the claims, of the Property Appraiser's general creditors® The Property Appraiser has previously repotted the assets and associated liabilities of the deferred comp nsation--'plan in the .Property -Appraiser's financial statements as an agency, fund. Effective with the -change in legislation these assets are no longer the Property prasr°$s assets and fiduciary responsibility has been transferred to the third party .pl,an administrator. - Consequently, these asses are no longer, reported in the ,accompanying financial statements, ire compliance With Governmental Standards Board Statement No. 3 , NOTE 7 W LITIGATION The Property Appraiser is a defendant in variou's lawsuits and is involved in other disputes wherein substantial amounts,ar dl im d. In t `opinion of the Property Appraiser, these suits and claims- should not result in judgments r° settlements which, ,in aggregate, wouldliave a material effect on the Property Appraiser®s financial position. NOTE 8 - RISK MANAGEMENT The Property Appraiser is exposed to varies ri ks -pf loss related t tort theft-ofe damag to, and destruction f assets; errors and omissions; injuries to employees® and natural disasters. Jhe Property Appraiser participates in the coverage provided by' the Board of County' Commissioners of Monroe County 10� MONROE COUNTY, FLORIDA PROPERTY. APPRAISER NOTES TO FINANCIAL 'STATENENTS EPTEM ER 30, 19 NOTE 8 - RISK MANAGEMENT (Continued) for Workers , Compensation, Group' Insurance, and . Risk Management internal service funds. Under theca programs, the brkar`s Compensation F6hd, provides $250,000 coverage per claim for regular employees. The Group. Insdi anc Fun provides coverage up to $ 5,0 0 for each medical claim. Risk Management -, provides $100,000 for' each general liability 'claim aid .$100s000 for most property damage claims. Windstorm, Flood and Property Damage insurance excess coverage varies by individual- property; The County purchases ommer is insurance for claims in excess of coverage provided by the 'funds, and for all other rri sks of loss. Settled l ai ms`have `hot exceeded this. commerci al coverage in any of the past three years_ The Property Appraisers makes payr1eht ,t the. Worker's Cpr�pnstiffi -Group Insurance and _Risk` Management Funds based on estimates ates of the amounts needed to pay Prior and €err nt r claims. ' NOTE 9 IMPACT OF YEAR 200 The Year - 2000 i ssue ,i s the r sul t of short om s i n many l ctr 6ni process i ng syst ais` and other l trdni cequipment that may adversely affect' the Property Appraiser's operations as early as fis al .y ar 1999,. . The Property Appraiser is 'in the' process of taking a thorough inventory 'of computer systems and other electronic q ip nt that may affected' by ,the year 2000 issue and that are nddssary , tb conducting Property Appraiser operations. , It is unknown as . f September 30, 1998, what-'-effects, if any, failing' to ' r m diat such systems will have Upon the Property Appraiser operations and financial reporting. Because of the unprecedented nature- of the Year 2000, issues, its effects and the success of related rr' di'atin ffdr°ts will not b f l ly determinable until the year 00 'and thereafter. 'Management cannot assure that the Property Appraiser is or' will be Year 20 00 raadya that the Property Appraiser's rd adiati n efforts will be successful in whole or in; part, or that parties with whore the Property Appraiser, does business will be 2000 ready. -11- KEMP B GREEN, P.A. Certified Public Accountants 1438 KENNEDY DRIVE P. O 1529 KEY WEST, FLORIDA 33041-1529 MEMSER°OF AMERICAN INSTITUTE 0, KEMP, C.P.A. (3 5) 244-25 1 AND FLORIDA INSTITUTE of MARVA_E. GREEN, FAX # (305)294-4775 CERTIFIED PUBLIC ACC6UNTANTS DEPENDS T AIT S' REPOT O COMPLIANCE AND INTERNAL-' T OVER FINANCIAL REPORTI Mr. Ervin Higgs Property Appraiser Monroe County, Florida We have audited the financial statements of the Property"A raiser'' of Monroe County, Florida ("Property Appraiser".) as of and for the year ended September 30, 1998, and have issued our report thereon dated February 11, 1999. We conducted our-audit- in accordance''with generally accepted auditing standards and the standards; 'applicable to financial 'audits contained in rrrlr rrt t AuditingStandards, issued y the Co ptrolI r General of, e United States. or�pl i arc, .As part of obtaining reasonable assonance -about whether, the Property 'Appraiser's financial st to n s are free of Material misstatement, w performed tests f .its compliance with Icertain provisions of laws, regulations, contracts and grant$, noncompliance with which could ave a direct and material effect on the determination -of financial -statement amounts. However, providing an opi'nicn or ,comefiance 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 do instances of noncompliance that are mqui red to be ,reported under Governmient Auditing Standards. Internal Control Over Fina!lcial Re ortn n planning and performing our audits we considered the Property A praiser's , internal control ,over financial reporting ire order to determine our a ditin procedures for the purpose of expressing bur opjnipr or the financial statements and not to provide assurance. bh the internal control over financial reporting. Our .consideratibn of the internal control over financial reporting would not .necessarily disclose, all matters in the internal control over financial reporting that'Fight be material weaknesses A material weakness is condition in which the design r operation of one on ore of the internal control components does not reduce to a relatively low level the rusk that misstatements in amounts that would be material in relation to the financial 1 - statements being audited may occur and not b . detected within a timely,period by` mpl ,y s in the normal course -of performi ng th it assigned functi ons. noted no natters involving the internal control ov- er financial reporting and its operation that we consider to be material weaknesses. This report is intended for ,the informations of management, federal awarding agencies and pass=through entities; However, this report is a matter of public record ,and its-distribution is not limited, Kemp & Green, P.A. Certified Public Accountants. brtr 11, 1999 -1, - KEMP GREEN, P.A. Certified Public Accountants 1435 KENNEDY DRIVE P. 0. BOX 1529" KEY WEST, FLORIDA 33041-1529 � MEMBER A MERICAN INSTITUTE . KE tP, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF MA VA E. GREEN, C,P.A. FAX # (305)-294-4778 CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS.' MANAGEMENT LETTER ra Ervin A. Higgs Property Appraiser Monroe County, . Florida In planning, and p r drming our audit Of the inandi'al statements of the Property Appraiser'of. Monroe County, Florida ("Property Appraiser"), for the year ended September 30® 199 s we considered the .Property Appra'is is internal control in order t0 det r ine° Our auditing procedures for the purpose f expressing our opinion on the financial statementt. Although our audit was not designed to, provide assurance on internal I control , andits operations, w noted certain Matters involving internal central and, its Operation; and are submitting for yo r° consideration related recommendations- designed to-help to-help the Property Appraiser' Make improvements and achieve :operational efficiencies. Our comments r° fl e t .our desire t0 be Of continuing assistance to the Property Appraiser® R Orte i rl ri Or Year @ s Mart del eel Letter Not °ITg Ln ented s cf e tet� er 30m 1 There were ne recommendations and suggested accounting procedures -as Outlined. in the Management Letter for the yearended- September 30$ 1997. Current Year Findings .One. OTHER 'REQUIRED DISCLOSURES Marva Green was the Auditor in Charge for the audit of the Property Appraiser°., We attest that the Auditor in Charge stet the educational requirements pursuant to Chapter 11.45, Florida Statutes® 14- The Property Appraiser was not in a state of financial emergency as described in Florida Statutes, Section 216.503(1). We have reviewed the annual report filed with the Department of Banking and. Finance , for Monroe County, ` Florida pursuant to Section' 218.32, Florida Statutes. This report is in agreement with the annual audit report which .. incorporates the financial statements of the Property Appraiser. Requirements-relative to' Public Records Modernization Trust money do not apply to the Property Appraiser. This report is intended solely for the information.of the Board. of County Commissioners and others within the County, and officials of applicable federal and state agencies. This restriction is not intended to limit the distribution of this report, which is a matter of public record. d- Kemp & Green, P.A. Certified Public Accountants Eebruary_11, 1999 .15.