Fiscal Year 1992 & 1993 r-1
MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
FINANCIAL STATEMENTS
-' SEPTEMBER 30, 1993 AND 1992
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KEMP & GREEN, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
CONTENTS
Pages
Independent Auditors' Report 1
- Financial Statements:
Balance Sheets 2-3
Statements of Revenue, Expenses and Changes in Fund Equity 4
Statements of Cash Flows 5-6
Notes to Financial Statements 7-15
Other Reports:
Report on Internal Control Structure and Management Comments 16-18
Report on Compliance with Laws and Regulations 19
Report on Bond 'Compliance 20
Supplemental Schedule:
Schedule of Expenditures - Budget and Actual 21
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KEMP & GREEN, P.A.
Certified Public Accountants
1438 KENNEDY DRIVE
P. O. BOX 1529
KEY WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE
WM. O. KEMP, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF
I
MARVA E. GREEN, C.P.A. FAX # (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS
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INDEPENDENT AUDITORS REPORT
Clerk Ex Officio
Board of County Commissioners
Monroe County, Florida
We have audited the financial statements of the Monroe County, Florida Municipal
Service District as of September 30, 1993 and 1992, and for the years then ended,
listed in the accompanying table of contents. These financial statements are the
-- responsibility of the County's management. Our responsibility is to express an
opinion on these Jinancial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards 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 disclosures in the financial statements. An audit
also includes assessing the accounting principles 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.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the Monroe County, Florida Municipal
Service District as of September 30, 1993 and 1992, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles,
Our audit was made for the purpose of forming an opinion on the financial
statements taken � as a whole. The schedule listed in the foregoing table of
contents, which is also the responsibility of the management of the County, is
presented for purposes of additional analysis and is not a required part of the
financial statements of the County. Such additional information has been
subjected to the auditing procedures applied in the audit of the financial
statements and, in our opinion, is fairly stated in all material respects when
- considered in relation to the financial statements taken as a whole.
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Kemp & Green, P.A:
- Certified Public Accountants
February 28, 1994
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MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
BALANCE SHEETS
SEPTEMBER 30, 1993 AND 1992
ASSETS
- 1993 1992
Current Assets:
Cash and Cash Equivalents 5 80 q $ 9,288 $ 7,200,758
Investments at Cost or Amortized Cost 2,981,052 -
Accounts Receivable - Net of Allowances for
Uncollectible Accounts of $1,113,188 and
$1,148,531 for 1993 and 1992 respectively 430,395 587,809
Due From Other Funds 1, 105 -
Due From Other� Governments 112,609 71,840
Interest Receivable 37,212 -
Total Current Assets 9,371,661 7,860,407
Restricted Assets:
Cash and Cash Equivalents 588,531 2,354,807
Investments 3,690,020 3,573,272
Total Restricted Assets 4,278,551 5,928,079
Plant, Property and Equipment:
Land 4,822,016 4,149,233
Buildings and Other Improvements 267,683 267,683
Equipment 13,072,450 12,834,290
18,162,149 17,251,206
Less Accumulated Depreciation and Depletion 9,231.640 8,363,060
Net Plant, Property and Equipment 8,930,509 8,888,146
- Deferred Charges - Unamortized Debt
Expense, Net 302,482 319,365
Total Assets $ 22,883,203 $ 22,995,997
The accompanying notes are an integral part
of these financial statements.
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MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
BALANCE SHEETS (Continued)
SEPTEMBER 30, 1993 AND 1992
LIABILITIES AND FUND EQUITY
1993 1992
Current Liabilities:
Accounts Payable $ 584,995 $ 1,422,883
Due to Other Funds 69,891 583,787
-' Due to Customers 266,978 268,860
Accrued Wages and Benefits Payable 53,211 107,159
Deferred Revenue - 23,317
Deposits 50,051 63, 126
- Total Current Liabilities 1,025, 126 2,469, 132
Current Liabilities Payable from
Restricted Assets:
Current Portion of Long-term Debt 920,788 813,862
Accrued Interest 303,328 308,144
Landfill Closure Costs 4,362,810 4,214,340
Total Accounts Payable from
Restricted Assets 5,586,926 5,336,346
Long-term Debt:
- Revenue Bonds, Net of Current Portion 9,105,000 9,390,000
Due to Monroe County Land Authority 442,529 885,000
Accrued Compensated Absences 115,651 102,310
Special Obligation Notes Payable 50,953 244,241
Total Long-term Debt
9 9,714,133 10,621,551
Total Liabilities 16,326,185 18,427,029
Fund Equity:
Contributed Capital 2,805,649 2,805,649
Retained Earnings:
- , Unreserved (223,854) (1,791,177)
Reserved for Payment of Long-Term Debt 3,975,223 3,554,496
Total Fund ,Equity 6,557,018 4,568,968
Total Liabilities and Fund Equity $ L 883,203 $ 22,995,997
_I The accompanying notes are an integral part
of these financial statements.
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MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY
FOR THE YEARS ENDED SEPTEMBER 30, 1993 AND 1992
1993 1992
Operating Revenues:
Charges for Services $ 11,600,754 $ 10,877,692
Franchise Fees, 3,001,539 2,771,054
Miscellaneous 144,685 130,600
Total Operating Revenues 14,746,978 13,779,346
Operating Expenses:
Professional Services 11,160,516 9,311,301
Personal Services 1,054,278 1,593,724
- Depreciation and Depletion 916,076 1,008,359
Operations 519,647 419,289
Landfill Closure Costs 857,689 -
Repairs and Maintenance
- P 48,259 69,978
Total Operating Expenses 14,556,465 12,402,651
Operating Income 190,513 1,376,695
Non-operating Revenues (Expenses) :
Operating Grants 812,567 121,528
Interest Income 535,181 557,166
Interest Expense and Fiscal Charges (638,908) (682,602)
Loss on Disposition of Assets (6,586) (33,947)
Total Non-Operating Revenues (Expenses) 702,254 (37,855)
Net Income Before Operating Transfers 892,767 1,338,840
Operating Transfers - Transfer from
Other Fund 1,095,283 442,500
Net Income 1,988,050 1,781,340
Fund Equity, Beginning of Year 4.568,968 2,787,628
Fund Equity, End of Year $ 6,557,018 $ 4,568,968
The accompanying notes are an integral part
of these financial statements.
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MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30 1993 AND 1992
1993 1992
Cash Flows from Operating Activities:
Cash Received for Services $ 14,745,556 $ 13,599,326
Cash Payments to Suppliers for Goods
and Services (13,791,307) (9,398,730)
Cash Payments to Employees for Services (1,094,885) (1,557,361)
Other Operating Revenue 144,685 130,600
Net Cash Provided by Operating Activities 4,049 2,773,835
Cash Flows from Noncapital Financing
Activities:
Operating Grants Received 748,481 82,480
Operating Transfers From Other Funds 2,727,395 1,821,199
Operating Transfers to Other Funds (1,632, 112) (1,378,699)
Net Cash Provided by Noncapital
Financing Activities 1 ,843,764 524,980
Cash Flows from Capital and Related Financing
Activities:
Additions to Fixed Assets (948,142) (193,966)
Principal Paid on Long Term Debt (813,862) (658,116)
Interest Paid on Long Term Debt (643,724) (665,873)
Net Cash Used by Capital and
Related Financing Activities (2,405,728) (1,517,955)
11 Cash Flows from Investing Activities:
Purchases of Investments (18,079,008) (11,468,476
Proceeds from Sale and Maturities of
Investment Securities 14,981,208 10,830,167
Interest on Investmen
ts 497.969
557,166
Net Cash Used by Investing Activities (2,599,831) (81,143)
Net Increase (Decrease) in Cash and
Cash Equivalents (3, 157,746) 1,699,717
Cash and Cash Equivalents, Beginning of Year 9,555,565 7,855,848
Cash and Cash Equivalents, End of Year 6,397,819 9,555,565
The accompanying notes are an integral part
of these financial statements.
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_ MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
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STATEMENTS OF CASH FLOWS (Continued)
FOR THE YEARS ENDED SEPTEMBER 30, 1993 AND 1992
Reconciliation Of Operating Income To Net Cash
Provided By Operating Activities
1993 1992
Operating Income $ 190,513 $ 1,376,695
Adjustments to Reconcile Operating
Income to Net Cash Provided by
Operating Activities:
Depreciation and Amortization 916,076 1,008,359
Change in Assets and Liabilities:
Decrease (Increase) in:
Accounts Receivable 157,414 (62,363)
Due From Other Funds (1, 105) -
(Decrease) Increase in:
Accounts Payable (837,888) 103,040
Accrued Wages (53,948) 27,735
Due to Other Funds (513,896) 540,995
Due to Other Governments 29 -
Deposits (13,075) 12,942
Landfill Closure Costs 148,470 (225,849)
Compensated ,Absences 13,341 8,629
Due to Customers (1,882) (16,348)
Total Adjustments (186,464) 1,397,140
Net Cash Provided by Operating Activities $ 4,049 $ 2,773,835
Supplemental Schedule Of Non-Cash Financing
g
Capital And Investing Activities
The Municipal Service District retired certain plant assets having a net book
value of $6,586 and $33,947 for 1993 and 1992 respectively.
The accompanying notes are an integral part
of these financial statements.
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MONROE COUNTY FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1993 AND 1992
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Resorting Entity - The Monroe County, Florida Municipal Service District ("MSD")
is �� ( D )
an enterprise fund of Monroe County (the County") authorized to own and
operate solid waste collection facilities of the County. MSD is considered an
integral component unit of Monroe County as its management is accountable to the
Board of Count Commissioners,Hers and '�t is neit
her>ther le
independent. Bally separate or fiscally
Basis of Accounting - The accountingand financial reporting treatment applied
o a fund is determined by its measurement focus. MSD uses a flow of economic
resources measurement focus. With this measurement focus, all assets and all
liabilities associated with operations are included on the balance sheet. Fund
equity (i .e. , net total assets) is segregated into contributed capital and
retained earnings components. Operating statements present increases (e.g. ,
revenue) and decreases (e.g. , expenses) in net total assets.
Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurements made regardless of the
measurement focus applied.
MSD uses the accrual basis of-accounting. Revenues are recognized in the period
in which they are earned and expenses are recognized in the period incurred.
Budgets and Budgetary Data - The following are the statutory procedures followed
by the Board of County Commissioners in establishing the budget for MSD.
1) Within- fifteen days after certification of the ad valorem tax roll
by the. Property Appraiser, the County Budget Officer submits to the
Board a proposed budget for the fiscal year commencing the following
October 1 . The budget includes proposed expenditures and the means
of financing them.
2) By Board resolution, a tentative budget is submitted to the public.
Public hearings are held to obtain taxpayer comments.
3) Fifteen days after adoption of the tentative budget, a final budget
is submitted for review and adoption at a final public hearing.
4) Prior to, or on September 30, MSD's budget is legally enacted
through passage of a resolution. Accordingly, all fund types have
an adopted budget as required by Florida Statute 129.03.
5) During the year, the Office of Management and Budget acts on
intradepartmental budget changes that do not alter the total revenue
or expenditures budgeted to a cost center. A cost center represents
a particular area of County operations or a department. All other
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MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1993 AND 1992
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
budget changes (whether they are transfers between cost centers or
alterations of total revenues and expenditures in a fund) are
approved by the Board. Supplemental appropriations were necessary
and the budgetary data
9 y presented
d herein was amended by the Board
during the year in a legally permissible manner.
6) Florida Statute 129, Section 7, as amended in 1978, provides that
only expenditures in excess of total fund budgets are unlawful .
However, because the Board acts on all budget changes between cost
centers, this becomes the level of control .
7) Budgeted to Actual Expenditure reports are employed as a management
control device during the year.
8) Budgets are adopted on a basis consistent with generally accepted
accounting principles (GAAP) , except for expenditures relative to
debt, capital outlay, and landfill closure costs.
9) All appropriations lapse at year end.
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- Investments - Investments are stated at cost, which approximates market. The
Monroe County Board of County Commissioners pools cash and investments of the
County, excluding those funds held and accounted for by the separate
Constitutional Officers and those requiring or benefiting by separate investment.
This gives the County the ability to maximize its yield on the short-term
- investment of cash, increasing its income accordingly.
- Interest earned on pooled investments nts is allocated to the participating funds
based on their average daily balance. Individual fund deficits are ignored in
the allocation of interest.
Property and Depreciation - Property is recorded at cost. Expenditures for
maintenance, repairs and minor renewals and betterments are expensed as incurred.
Major renewals and betterments are treated as property acquisitions.
Depreciation and depletion expense is provided using the straight-line method
over the estimated useful lives of the assets as follows:
Description Years
�I Sanitary. Landfill Sites 1 - 10
-- Buildings and Other Improvements 10 - 20
Machinery and Equipment 3 - 10
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MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1993 AND 1992
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The cost and accumulated depreciation of property dispositions are removed from
the accounts with the related gain or loss on disposition reflected in net
income.
Deferred Charges - The unamortized issuance costs on Revenue Bonds Payable are
amortized using the straight-line method over the maturity of the bonds.
Compensated Absences - County 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 accumulated annual leave.
In general , sick leave payments are granted upon termination of employment to
employees w'
with five years or more of credited service. The maximum payment is
subject to percentages and maximum hour limitations. The accumulated compensated
absences are accrued when incurred.
Cash and Cash Equivalents - For purposes of the statement of cash flows, MSD
considers all highly liquid investments (including restricted assets) with a
maturity of three months or less when purchased to be cash equivalents.
-- NOTE 2 - CASH AND INVESTMENTS
Cash and investments consist of the following. at September 30, 1993:
Unrestricted Restricted
Cash - Demand Deposits p $ 4.156,949 $ 588,154
Investments:
Pooled Cash Program g 1,616,285 -
U.S. Government Securities 2,407, 191 3,690,020
Money Market 36,054 377
Municipal Bonds 124,868 -
Commercial Bonds 448,993 -
Total Investments 4,633,391 3,690,397
Total Cash and Investments $ 8,790,340 $ 4,278,551
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- MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1993 AND 1992
NOTE 2 - CASH AND INVESTMENTS (Continued)
Florida Statute 125.31 authorizes MSD as a County fund to invest surplus funds
in the following: p
- a) the Local Government Surplus Funds Trust Fund under the management
of the State of Florida Board of Administration
b) the Florida Counties Investment Trust Fund under the sponsorship of
the Florida Association of Counties and the Florida Association of
Court Clerks Comptrollers
- c) negotiable direct obligations of, or obligations of which the
principal and interest are unconditionally guaranteed by the U.S.
Government
d) interest bearing time deposits or savings accounts in banks and
savings and loans organized under state laws or doing business in
and situated in the state, provided collateral requirements are met.
e) obligations of the Federal Home Mortgage Corporation
f) obligations of the Federal National Mortgage Association
g) commercial paper of the U.S. corporations having a rating of at
least two of the followingthree ratings: - -
g A l P-1 and F 1 as
rated by Standards & Poors, Moody's and Fitch Investors Service
rating services
h) Banker's acceptances that are eligible for purchase by the Federal
Reserve Banks and have a letter of credit rating of AA or better
i) Tax-exempt obligations of the State of Florida and its various local
governments, including Monroe County. Tax exempt obligations with
a rating of A or less, must be an insured issue through MBIA or an
equivalent company. Issues rated A+ or higher may or may not carry
an insurance backing.
Deposits - Demand and time deposits are fully insured by Federal Depository
Insurance and the multiple financial institution collateral pool required by
Sections 280.07 and 280.08, Florida Statutes.
-- Investments - Investments at year end are shown as follows. The U.S. Treasury
obligations are held by the Count 's agent in the Co 'Y 9 unty s name.
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- MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1993 AND 1992
NOTE 2 - CASH AND INVESTMENTS (Continued)
Carrying Market
Amount Value
Pooled Cash Program $ 1,616,285 $ 1,616,285
U.S. Government Securities 6,097,211 6,150,036
Money Market 36,431 36,431
- Municipal Bonds 124,868 126,497
Commercial Bonds 448,993 449,842
$ 8,323,788 $ 8,379,091
NOTE 3 - LONG-TERM DEBT
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1993 1992
Long-term debt consists of the following:
-? Refunding Improvement Bonds, secured by revenues
of MSD which are obligations solely of MSD,
payable in installments of various amounts from
- October 1, 1993 through October 1, 2011, bearing
interest at 5.6% to 6.75% $ 9,390,000 $ 9,570,000
Special Obligation Notes Payable, due in monthly
installments of $21,919 to December 29, 1994,
_! interest at 8.56% 244,241 435,603
Due to Other Governments, amount payable to Monroe
County Comprehensive Plan Land Authority (MCLA) .
` The debt is secured by an interlocal agreement
which grants MCLA a conservation easement over the
related land. The County will repay $442,500
annually, interest free. 885,029 1,327,500
Accrued compensated absences 115,651 102,310
Landfill closure costs 4,362,810 4,214,340
Total long-term debt 14,997,731 15,649,753
Less current port ion 5,283,598 5,028,202
Net long-term debt $ 9,714,133 $ 10,621,551
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MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30. 1993 AND 1992
NOTE 3 - LONG TERM DEBT (Continued)
The total annual debt service funding requirements for all bonds outstanding at
September 30, 1993, consisting of interest payments of $6,325,666 and principal
r payments of $9,634,241 are as follows:
Revenue Notes
Bonds Payable
1994 $ 890,918 $ 206,728
1995 889,117 51,682
i 1996 891,162 -
1997 891,732 -
1998 890,788 -
1999-2003 4,472,043 -
2004-2008 4,422,975 -
2009-2011 2,352,762 -
$15.701.497i-J $ 258.410
The 1991 Municipal Service District Refunding Improvement bonds are payable
solely from and secured by a prior lien upon and pledge of (i) charges for ,
service levied annually against residential property within the Monroe Count
Municipal Se Y
p Service District (the "District") , Monroe County, Florida for the
availability and furnishing of certain solid waste disposal services, (ii)
payments received, from franchise solid waste collectors with respect to
commercial property within the District, (iii) all other non ad valorem funds
s
received by the District with respect to furnishing services of the solid waste
facilities to the residents of the District excluding any state or federal funds
received from time to time by the District and (iv) certain investment income
received by the District. Under the terms of the enterprise revenue bonds issue,
the Municipal Service District is required, among other things, to establish
rates and to collect fees and charges which will be sufficient at all times to
pay 110% of the Maximum Debt Service Requirement on the Series 1991 Bonds and on
` all outstanding Parity Bonds, plus 100% of all reserve or other payments
including the cost of Operation and Maintenance and deposits for Renewal and
Replacements of the Facilities. The Municipal Service District was in compliance
with those covenants for the year ended September 30, 1993. The Bonds and the
interest payable thereon will not constitute a general obligation of the
District, Monroe County, or the State of Florida, or a pledge of the faith and
credit of the District, Monroe County, the State of Florida or any political
subdivision thereof. Neither the Bonds, nor any interest or premium thereon,
shall be payable from the ad valorem tax revenues of the District
, Monroe County,
or the
State of Florida.
The 1989 Special Obligation Notes are payable from and collateralized by (i)
charges for service levied against designated property within Monroe County
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MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1993 AND 1992
NOTE 3 - LONG TERM DEBT (Continued)
benefitted by the County's solid waste disposal system pursuant to Ordinance No.
033-1989 (ii) any payments received from franchisee solid waste collectors with
respect to commercial property within Monroe County (iii) all other non ad
valorem funds received by the issuer with respect to the furnishing of solid
waste disposal services to residents of Monroe County, excluding any state or
federal funds received from time to time by the County and (iv) investment
earnings. The pledge of the aforementioned revenues are junior and inferior in
all respects to the lien of the 1991 Municipal Service District Refunding
Improvement Revenue Bonds on such revenues.
NOTE 4 - PRIOR YEAR DEFEASANCE OF DEBT
On December 6, 1985 the County defeased the $8,000,000 Municipal Service District
_ Improvement Bonds, Series 1980 using proceeds from the $9,211,774 Municipal
Service District Refunding Improvement Bonds, Series 1985. On April 1, 1991 the
County defeased 'the Municipal Service District Refunding Improvement Bonds,
Series 1985 by using proceeds from the Municipal Service District Refunding
Improvement Bonds, Series 1991.
The following schedule reflects the outstanding principal on refunded Municipal
Service District Bonds, by issue as of September 30, 1993:
$8,000,000 Municipal Service District Improvement
Bonds Series 1980
l � $ 7,190,000
$9,211,774 Municipal Service District Refunding
Improvement Bonds, Series 1985 6,811,774
$ 14,001,774
NOTE 5 - LEASE OBLIGATIONS
Rental expense under operating leases was $46,930 and $613 for 1993 and 1992
respectively.
NOTE 6 - RETIREMENT PLAN
Substantially . all full-time MSD employees are participants in the Florida
Retirement System "The System", a multiple-employer, cost-sharing public
retirement system. The System, which is controlled by the State Legislature and
administered by the State of Florida, Department of Administration, Division of
Retirement, covers approximately 546,000 full-time employees of various
governmental units within the State of Florida.
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_ MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1993 AND 1992
NOTE 6 - RETIREMENT PLAN (Continued)
The System provides for vesting of benefits after 10 years of creditable service.
Normal retirement benefits are available to employees who retire at or after age
62 with 10 or more years of service. Early retirement is available after 10
years of service with a 5% reduction of benefits for each year prior to the
normal retirement age. Retirement benefits are based upon age, average
compensation and years-of-service credit where average compensation is computed
as the average of an individual 's five highest years of earnings.
_; MSD has no responsibility to the System other than to make the periodic payments
required by state statutes. Ten-year historical trend information showing the
System's progress in accumulating sufficient assets to pay benefits when due is
presented in the System's June 30, 1993 Comprehensive Annual Financial Report.
The amount reported below as "pension benefit obligation" is a standardized
disclosure measure of the present value of pension benefits, adjusted for the
effects of projected salary increases estimated to be payable in the future as
a result of employee service to date. The measure is the actuarial present value
of credited projected benefits and is intended to assist users in assessing the
plan's funding status on a going-concern basis, assess progress made in
accumulating sufficient assets to pay benefits when due, and make comparisons
among government pension plans and employers. The System does not conduct
separate measurements of assets and pension benefit obligations for individual
employers. The pension benefits obligation
g at June 30, 1993 for the System as
a whole, determined through an actuarial valuation performed as of that date, was
$39.7 billion. The System's net assets available for benefits on that date
(valued at market) were $31 .7 billion, resulting in an unfunded pension benefit
obligation of $8.0 billion.
Participating employer contributions are based upon state-wide rates established
by the State of Florida. These rates are applied to employee salaries as
follows: regular employees, 17.27%, special risk employees, 27.14%, and elected
officials, 25.84%. MSD's contributions of approximately $178,000 and $185,000
for the years ended September 30, 1993 and 1992 were made in accordance with
contribution requirements determined by the actuarial valuation of the System as
of June 30, 1993. These contributions represented approximately .01% of total
contributions required of all participating employers during the fiscal years of
the System ended June 30, 1993 and 1992.
Total payroll for MSD employees during the fiscal years ended September 30 1993
and 1992 was approximately $1,052,000 and $1,135,000 respectively, which was
substantially the same as payroll covered by the System. The contribution to the
System for these years was approximately 16.9% and 16.3% of total payroll for
1993 and 1992 respectively.
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MONROE COUNTY FLORIDA
MUNICIPAL SERVICE DISTRICT
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NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1993 AND 1992
NOTE 6 - RETIREMENT PLAN (Continued)
There were no changes in actuarial assumptions, benefit provisions, actuarial
funding methods or any other significant factors that affected MSD's contribution
during the fiscal year ended September 30, 1993. Effective January 1, 1994
contribution rates were increased to cover future normal costs and to amortize
the unfunded liability determined as of June 30, 1993.
NOTE 7 - DEFERRED COMPENSATION PLAN
The County offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available to all
employees, permits them to defer a portion of their salary until future years.
The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and rights
purchased with those amounts, and all income attributable to those amounts,
- property, or rights are (until paid or made available to the employee or other
beneficiary) solely the property and rights of the Count
`--' provisions of b Y (without being
restricted to the
P benefits under the plan) , subject only to the
claims of the County's general creditors. Participants' rights under the plan
are equal to those of general creditors of the County in an amount equal to the
fair market value of the deferred account for each participant.
The County has no liability for losses under the plan but does have the duty of
due care that would be required of an ordinary prudent investor. The County
believes that it is unlikely that it will use the assets to satisfy the claims
of general creditors in the future.
__ -15-
i
KEMP Z4 GREEN, P.A.
Certified Public Accountants
1438 KEN NEDY DRIVE
P. O. BOX 1529
KEY WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE
- WM. O. KEMP, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF
MARVA E. GREEN, C.P.A. FAX * (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT
OF THE FINANCIAL STATEMENTS AND MANAGEMENT COMMENTS
Clerk Ex Officio
Board of County Commissioners
-'I Monroe County, Florida
We have audited the financial statements of the Monroe County, Florida Municipal
Service District ("MSD") as of and for the year ended September 30, 1993, and
ha
ve issued our report the
reon ereon dated February 28, 1994.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.
In planning and performing our audit of the financial statements of MSD for the
year ended September 30, 1993, we considered its internal control structure in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and not to provide assurance on the internal
control structure.
The management of MSD is responsible for establishing and maintaining an internal
control structure. In fulfilling this responsibility, estimates and judgements
by management are required to assess the expected benefits and related costs of
internal control structure policies and procedures. The objectives of an
internal control structure are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from unauthorized
use or disposition, and that transactions are executed in accordance with
management's authorization and recorded properly to permit the preparation of
financial statements in accordance with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
- irregularities may! neve
rtheless occur and not be detected. Also, projection of
any evaluation of the structure to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of policies and procedures may
deteriorate.
` For the purpose of this report,
w a the control policies and procedures in thefollowingfcatdegorieslgnificant internal
� I
- Revenues/Cash Receipts
- Expenditures/Cash Disbursements
External Financial Reporting
- Payroll/Personnel
- Controls Used in Administering Compliance with Laws and Regulations -
General and Specific.
-16-
For all of the control categories listed previously, we obtained an understanding
of the design of relevant policies and procedures and whether they have been
placed in operation, and we assessed control risk.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a reportable condition in which the
design or operation of one or more of the specific internal control structure
elements does not reduce to a relatively low level the risk that errors and
irregularities in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing .their assigned functions. We noted
no matters involving the internal control structure and its operation that we
consider to be material weaknesses as defined above.
MANAGEMENT COMMENTS
Reported in Prior Year's Report on Internal and
Management Comments Not Implemented as of
September 30, 1993
During the course of our current examination of the financial statements of MSD,
we noticed appropriate action had been taken upon recommendations and suggested
accounting procedures as outlined in the Management Comments section of the
Report on Internal Accounting Control and Management Comments for the year ended
September 30, 1992, except for the following:
Due to Customers
Observation: Several credits refundable to Municipal Service District Customers
with current was
te disposal bills were note
d.ed. During this fiscal year there were
no procedures to review this listing for potential refunds.
Recommendation: Procedures have been modified whereby refunds have been placed
on the 1994 tax bills. A review of the customer refunds should be performed on
a routine basis to ensu
re that all available credits have been refunded.
Current Year Findings
None
OTHER REQUIRED DISCLOSURES
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 Municipal Service District of Monroe County, Florida.
_.'' -17-
Marva Green was the Auditor in Charge for the audit of the Municipal Service
( _ District of Monroe County, Florida. We attest that the Auditor in Charge met the
educational requirements pursuant to Chapter 11 .45, Florida Statutes.
The Municipal Service District was not in a state of financial emergency as
described in Florida Statutes, Section 218.503(1) .
This report is intended solely for the information of the Board of County
Commissioners, management 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.
Kemp & Green, P.A.
Certified Public Accountants
February 28, 1994
-18-
}
' I
II
Li
KEMP 1& GREEN, P.A.
Certified Public Accountants
1438 KENNEDY DRIVE
P. O. BOX 1529
KEY WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE
WM. O. KEMP, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF
MARVA E. GREEN, C.P.A. FAX * (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF THE FINANCIAL
STATEMENTS
Clerk Ex Officio
Board of County Commissioners
Monroe County, Florida
We have audited the financial statements of Monroe County, Florida Municipal
Service District ("MSD") as of and for the year ended September 30, 1993, and
have issued our report thereon dated February 28, 1994.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
- obtain reasonable assurance about whether the financial statements are free of
material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to MSD is the
responsibility
tY of the MSD s management.
t. As art of obtaining g reasonable assurance
about whether the financial statements are free of material misstatement, we
performed tests of MSD's compliance with certain provisions of laws, regulations,
contracts, and grants. However, our objective was not to provide an opinion on
overall compliance with such- provisions. Accordingly, we do not express such an
opinion.
The results of our tests indicate that, with respect to the items tested, MSD
complied, in all material respects, with the provisions referred to in the
preceding paragraph. With respect to items not tested, nothing came to our
attention that caused us to believe that MSD had not complied, in all material
respects, with those provisions.
- This report is intended for the information of the Board of Count Commissioners,
,
management 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.
Ke
mp mp & Green, P.A.
Certified Public Accountants
February 28, 1994
-19-
J
i
KEMP & GREEN, P.A.
Certified Public Accountants
1438 KENNEDY DRIVE
P. O. BOX 1529
KEY WEST, FLORIDA 33041-1529 MEMBER OF AM•ERICAN INSTITUTE
WM. O. KEMP, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF
MARVA E. GREEN, C.P.A. FAX # (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS
r
INDEPENDENT AUDITORS' REPORT ON BOND COMPLIANCE
Clerk Ex Officio
Board of County Commissioners
Monroe County, Florida
We have audited the financial statements of Monroe County, Florida Municipal
Service District as of September 30, 1993 and 1992, and for the years then ended,
listed in the accompanying table of contents. These financial statements are the
responsibility of the County's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We -conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards 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 disclosures in the financial statements. An audit
also includes assessing the accounting principles 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.
In connection with our audit, nothing came to our attention that caused us to
believe that the Monroe County, Florida Municipal Service District was not in
compliance with any of the terms, covenants, provisions, or conditions of Article
5 of Resolution No. 061 which was adopted by the Board of County Commissioners
on March 12, 1991, as amended and supplemented. However, it should be noted that
our audit was not directed primarily toward obtaining knowledge of such
noncompliance.
Kemp & Green, P.A.
Certified Public Accountants
February 28, 1994
-20-
I�
_ MONROE COUNTY, FLORIDA
MUNICIPAL SERVICE DISTRICT
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30 1993
Variance
Favorable
Operating Expenditures: Budget Actual (Unfavorable)
Administration $ 547,105 $ 541,405 $ 5,700
Hazardous Waste 299,352 231,024 68,328
Franchise Operators 3,737,288 3,702,507 34,781
Indirect Costs 100,000 - 100,000
Cudjoe Key Transfer Station 1,736,340 1,717,991 18,349
Cudjoe Key Landfill 200,326 177,203 23,123
Cudjoe Key Landfill Closure 440,670 439,692 978
Cudjoe Key Post Closure 9,129 - 9,129
Long Key Transfer Station 2,253,901 2,226,436 27,465
Long Key Landfill 233,196 204,372 28,824
Long Key Landfill Closure 919,300 918,572 728
Long Key Post Closure 9,129 - 9,129
Key Largo Transfer Station 2,979,803 2,848,697 131,106
Key Largo Landfill 267,909 185,221 82,688
Key Largo Landfill Closure 205,751 205,531 220
Key Largo Post Closure 40,275 - 40,275
Pollution Control 276,443 88,825 187,618
Recycling 741,668 676,560 65,108
Recycling Grant 66,219 44,652 21,567
DER Recycling Grant 123,151 86,531 36,620
Mosquito Control Fire
Abatement Grant 18,272 7,585 10,687
- Litter Grant 46,634 46,634 -
Salary Adjustment 26,528 - 26,528
Total Operating Expenditures 15,278,389 14,349,438 928,951
Non-Operating Expenditures:
Debt Service:
Principal Retirement 1,013,862 813,862 200,000
Interest Expenses and Fiscal
Charges 729,502 638,908 -90,594
Capital Outlay 4,783,669 945, 178 3,838,491
Loss on Disposition of Assets 6,586 6,586 -
Total Non-Operating
Expenditures , 6,533,619 2,404,534 4,129,085
Operating Transfers and Reserves:
Reserve for Contingencies 2,369,823 - 2,369,823
Transfers to Other Funds 1,799,564 1,632,112 167,452
_ Total Operating Transfers
and Reserves ' 4,169,387 1,632, 112 2,537,275
Total Expenditures $ 25,981,395 $ 18,386,084 $ 7,595,311
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