Report No. 08383, Tax Assessor 8383
STATE OF FLORIDA
OFFICE OP THE AUDITOR GENERAL
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*** MONROE COUNTY ***
TAX ASSESSOR
As of March 31, 1974
8383
STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
Report on Audit
of the Accounts of
MONROE COUNTY
TAX ASSESSOR
As of March 31, 1974
Dated: January 24, 1975
04 1 xEss,p
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I s. STATE OF FLORIDA
t,
OFFICE OF THE AUDITOR GENERAL
ERNEST ELLI$ON.C.P. A. Tallahassee, Florida
AuDP*o^GENERAL January 24, 1975
The Legislative Auditing Committee
of the Legislature
and the
Governor of Florida
Sirs:
Pursuant to the provisions of Section 11.45, Florida Statutes, I
have directed that an audit be made of the accounts and records of the
HONORABLE JOE ALLEN
TAX ASSESSOR
MONROE COUNTY
For the period beginning January 1, 1973,
Par. and ending March 31, 1974,
No.
and present this report thereon.
(1) Pursuant to the provisions of Section 11.45(4), Florida Statutes,
an audit by this office of the accounts and records for the period beginning
May 1, 1971, and ending December 31, 1972, has been deferred, except that an
audit of the Assessor's compensation was made from May 1, 1971, to March 31,
1974.
SCOPE AND OPINION
(2) An examination of the accounts and records was made in accordance
with generally accepted auditing standards, and accordingly included such
tests of the accounting records and such other auditing procedures considered
necessary in the circumstances.
(3) An examination of the procedures and methods used by the Tax
Assessor in the valuation of property and a determination of the accuracy
of his valuations shown on the tax rolls are not included in the scope of
this audit.
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Par.
No.
(4) In my opinion, the attached financial statements present fairly
the financial condition of the office of Tax Assessor at March 31, 1974,
and the results of its financial operations for the years 1973 and 1974
to March 31, in conformity with generally accepted governmental accounting
principles applied on a consistent basis.
CHANGE IN FISCAL YEARS AND IMPLEMENTATION
OF BUDGET PROCEDURES
(5) Pursuant to Chapter 73-172, Section 17, Acts of 1973, the office
of Tax Assessor was placed under a budget procedure effective January 1, 1974.
The initial budget is to be for a nine-month period ending September 30, 1974,
and thereafter the office is to be placed on fiscal years beginning October 1
and ending September 30. Budgets are required to be approved by the
Department of Revenue. These approved budgets, pursuant to Chapter 73-172,
Section 8, Acts of 1973, shall be the basis upon which the several taxing
authorities of each county (except municipalities and the district school
board) shall be billed by the Assessor for funds to operate the office. Each
such taxing authority shall be billed an amount equal to its proportionate
share of the total ad valorem taxes collected for the preceding year; provided
that all municipal and school district taxes shall be considered as taxes
levied by the county for purpsoes of this computation.
FINANCIAL CONDITION
(6) The assets at March 31, 1974, were adequate to cover all liabilities
of record, as shown on exhibit A.
TAX ROLLS
(7) Tax rolls were prepared and maintained through the use of an
electronic data processing system which was employed on a contractual
basis. Plats, maps, and aerial photographs were used in developing the
tax rolls.
(8) Corrections to the tax rolls by the Assessor, after delivery of the
tax rolls to the Tax Collector, were made in accordance with instructions
provided by the Department of Revenue.
(9) Tax rolls were prepared for the county, the City of Key West, and
the City of Key Colony Beach.
(10) The valuations on the tax rolls for the years in the audit period,
as shown on the Assessor's recapitulations, are summarized as follows:
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Par.
No.
Valuations Tax Roll
1972 1973
County-wide Nonexempt for School
Operating Purposes $430,021,585 $494,180,245
Homestead Exempt, Section 196.031(3),
Florida Statutes, 1972 Supplement 7,041,000 7,462,900
County-wide Nonexempt $437,062,585 $501,643,145
Constitutional Homestead Exempt 36,496,650 38,208,351
Other Exempt 142,377,685 166.156,840
Total Assessed $615,846,920 $706,008,336
INCOME AND EXPENSES
(11) Incorrect billings for commissions on the 1970 nonvoted school tax,
as reported in audit report No. 7700, page 17, had not been corrected as of
August 16, 1974.
(12) Commissions in general were correctly billed for the 1972 and 1973
tax rolls.
(13) The passage of Chapter 73-172, Acts of 1973, discontinued the commis-
sion system for Tax Assessors. Final settlement had not been made on the 1973
tax roll billings.
(14) Expenditures were adequately supported by documentation. Annual
reports of income and expenses, as required by Section 145.12, Florida Statutes,
1971, and Section 218.36, Florida Statutes, 1973, were promptly filed.
BUDGETS
(15) Budgets were approved by the State Department of Revenue for 1973
and for the period from January 1, 1974, to September 30, 1974. Total
expenditures were within budgeted amounts; however, expenditures in three
categories exceeded the budgeted amount in 1973 as follows:
Budget Category Amount of
Overexpenditure
Salaries $15,791.89
Matching Funds 584.37
Computer Processing 5,832.64
Total $22,208.90
Timely budget amendments could have prevented these budget item overexpenditures.
COMPENSATION
(16) Prior to October 1, 1973, Section 145.121, Florida Statutes, provided
that the Assessor's compensation would be under the same terms and conditions
which prevailed immediately prior to July 1, 1969.
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Par.
No.
(17) Under the provisions of Chapter 73-173, Acts of 1973, the rate of
the Assessor's compensation is prescribed by Section 145.10, Florida Statutes,
beginning October 1, 1973.
(18) Payment of excess compensation in the amount of $2,390.41, as noted
in audit report No. 7700, page 18, was corrected in 1971.
(19) Compensation earned by the Assessor during the audit period is as
follows:
1973 1974
to 3-31
Compensation Earned:
Chapter 65-1052, Acts of 1965 $ 9,349.32 $
Section 145.10, Florida Statutes 5,118.07 5,076.25
Total $14,467.39 $5,076.25
Personal Compensation from Cities Pursuant to
Chapter 69-1313, Acts of 1969: $ $
Key West, 1972 Roll 3,172.99
Key West, 1973 Roll 4,514.62
_Total Key West $ 7,687.61 $ - -
Key Colony Beach, 1971 and 1972 Rolls 2,092.20
Key Colony Beach, 1973 Roll 233.13
Total Compensation from Cities $10,012.94(1) $ - -
Total Compensation Earned $24,480.33 S5,076.25
Note: (1) Of this amount $425.48 was received in 1974.
RECORDS AND INTERNAL CONTROL
(20) Financial records were substantially in compliance with the provisions
of Chapter 219, Florida Statutes. Some minor deficiencies in the procedures
used to maintain the cashbook were noted and discussed with the Tax Assessor.
(21) As noted in audit report No. 7700, page 19, some expenditures had
not been recorded in the accounting period in which they were incurred. This
condition was found to continue in the current audit period. Although the
totals and offsets between periods for these did not materially affect the
total recorded expenditure amounts, the expenses should have been recorded
in the periods when the goods and services were received.
RETIREMENT AND SOCIAL SECURITY
(22) Retirement and social security contributions were deducted from
salaries paid to eligible employees. These contributions were remitted on a
timely basis together with contributions for the Assessor's personal account.
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Par.
No.
STATEMENT FROM AUDITED OFFICIAL
(23) In accordance with the provisions of Section 11.45(6) (d) , Florida
Statutes, a list of audit findings was submitted to the Tax Assessor. The
Tax Assessor's response to the list of audit findings is shown on exhibit D.
EXHIBITS
The following exhibits are attached to and form a part of this
report:
EXHIBIT - A Balance Sheet.
EXHIBIT - B Income Account.
EXHIBIT - C Receipts, Expenditures, and Budget.
EXHIBIT - D Statement from Audited Official.
Respectfully submitted,
(Signed) Ernest Ellison, C.P.A.
Auditor General
Audit supervised by:
(Signed) Willard C. Hale
Audit made by:
(Signed) Gerald J. Schilling
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EXHIBIT — A MONROE COUNTY
TAX ASSESSOR
BALANCE SHEET
March 31, 1g74
ASSETS
Cash in Banks $1, 169. 07
Due from Board of County Commissioners (1 ) 973. 74
Due from Key West (2) 5, 390. 70
Due from Key Colony Beach (2) 137. 76
TOTAL $7, 671. 27
LIABILITIES AND FUND BALANCE
Liabilities:
Payroll Deductions Payable S 9.84
Fund Balance:
Unexpended Budget Balance, Exhibit C $1 , 760.61
Assessor' s Equity 5, 900. 82
Total Fund Balance 87, 661. 43
TOTAL $7, 671. 27
Notes: (1 ) The amount due from the Board of County Commissioners
consists of the deficiency from 1973 operations to
be paid by the Board of County Commissioners pursuant
to Chapter 65- 1052, Acts of 1965. See exhibit B.
(2) The amount due from these cities consists of the
amount of personal compensation due to the Assessor
pursuant to the provisions of Chapter 69-1313, Acts
of 1969, for work done on the 1973 tax rolls prior
to October 1 , 1973. See Attorney General' s Opinion
No. 073-368.
EXHIBIT - A
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MONROE COUNTY EXHIBIT - B
TAX ASSESSOR
INCOME ACCOUNT
January 7, 1973 to December 31, 'q74
Gross Income
Commissions $256, 532. 17
Refund for Cost of Preparing Roll for City
of Key Colony Beach 250. 00
Total Gross Income $256, 782. 17
Expenses
Salaries and Benefits $193, 375. 46
Automobile Expense 8, 578. 70
Travel 6, 947. 97
Postage and Freight 3, 406. 93
Insurance 200. 00
Legal Fees 1, 500. 00
Association Dues 452. 50
Office Supplies 5, 327. 44
Telephone 1, 869. 00
Maintenance 2, 154. 11
Data Processing 15,832. 64
Miscellaneous 1, 159. 35
Equipment 2, 484. 42
Total Fxfenses $243, 288. 52
Net Income S 13, 493. 65
Compensation 14, 467 39
Excess Income (Deficit) $ -973. 74
EXHIBIT - A
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EXHIBIT - C MONROE COUNTY
TAX ASSESSOR
RECEIPTS, EXPENDITURES, AND BUDGET
For the Fiscal- Year Ending September go, ig74
BUDGETED ACTUAL BUDGET
TO 3-31 DIFFERENCE
Revenue
From Governmental Units $388, 494. 00 $93, 253. 32(1) $-295, 24o. 68
Expenditures
Salaries and Benefits:
Assessor' s Salary $ 15, 229. 00 $ 5, 076. 25 $ 10, 152. 75
Other Salaries and Benefits 196, 765. 00 64, 240. 55 132, 524. 45
Total Salaries and Benefits $211 , 994. 00 $69, 316. 80 $ 142, 677. 20
Other Personal Services 46, 200. 00 46, 200. 00
Expenses 105. 300. 00 8, 133. 01 97, 166. 99
Operating Capital Outlay 25, 000. 00 14, 042. 90 10, 957. 10
Total Budgetary Expenditures $388, 494. 00 $91, 492. 71 $ 297, 001. 29
Fund Balance 1, 760. 61 -r, 76o. 6s
Total $388, 494. 00 $93, 253. 32 $ 295, 240. 68
Note: ( 1) Board of County Commissioners $84, 379. 00
)Mosquito Control District 6, 833. 31
Key Colony Beach 2, 014. 07
Miscellaneous 26. 94
Total $93, 253. 32
EXHIBIT - C
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MONROE COUNT EXHIBIT - D
TAX ASSESSOR
STATEMENT FROM AUDITED OFFICIAL
„anu ry 1, i97S to Marsh ,/, sOOX
a ^
MONROE COUNTY
COUNT( COURT NOOSE
KEY WEST, FLORIDA
JOE ALLEN
T" """°• January 22, 1975
Mr. Ernest Ellison
Auditor General
State of Florida
Tallahassee, Florida 32304
Aad+t Dear Mr. Ellison:
Report
Paragraph I am today in receipt of your letter of January 16 regarding audit of
Number the Tax Assessor's Office, Monroe County, for the period January 1, 1973
to March 31, 1974.
With regard to the list of preliminary and tenative adverse audit findings
listed I would submit the following explanation:
(11) Paragraph 1: Incorrect billings, etc., this was billed following
audit report but Superintendent of Schools contested school Board
liability for this item.
us) Paragraph 2: In 1974 we were caught up in a situation whereby we
worked half year on fee system and half year on budget system.
Additionally, we did a complete in-house re-assessment of more
than 80,000 items. We were counting on fees that were held up
by the various taxing agencies because of lack of knowledge of
the new law. Once in the re-assessment we were committed to
complete it. We were exceptionally lucky to get by as well as
we did.
'21) Paragraph 4: "expenditures were not recorded in budget period,
etc." Under fee system the various taxing bodies did not always
pay their share of the fees on time. In many instances we were
caught up in situations where the individual taxing body was short
of funds and withheld fees of this office to use the funds to pay
other obligations.
I trust that the above explanation will De satisfactory.
\ Very truly-yowim, -
Joe\4llen
Tax Assessor
JA/cre
NO]'® FOR ins WOBtD'6 man DOOM J
EXHIBIT - D
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