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HomeMy WebLinkAboutFY2024 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Financial Report September 30, 2024 Contents Independent auditor's report 1-3 Management's discussion and analysis (Unaudited) 4-8 Basis financial statements Government-wide financial statements: Statement of net position 9 Statement of activities 10 Fund financial statements: Balance sheet—general fund 11 Statement of revenues, expenditures and changes in fund balance—general fund 12 Notes to financial statements 13-32 Required supplementary information (Unaudited) Schedule of changes in the Authority's total OPEB liability and related ratios 33 Florida Retirement System Pension Plan Schedule of the Authority's proportionate share of net pension plan liability 34 Schedule of the Authority's contributions to the Florida Retirement System Pension Plan 34 Health Insurance Subsidy Plan Schedule of the Authority's proportionate share of net pension plan liability 35 Schedule of the Authority's contributions to the Health Insurance Subsidy Plan 35 Schedule of revenues, expenditures and changes in fund balance— budget and actual—general fund (budgetary basis) 36 Other reports 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 37-38 Summary Schedule of Prior Year Findings 39 Management letter in accordance with Chapter 10.550 Rules of the Auditor General of the State of Florida 40-41 Independent accountant's report on compliance with Section 218.415, Florida Statutes 42 1,11'sim IRS111A US III..JII..J11P Independent Auditor's Report Governing Board Monroe County Comprehensive Plan Land Authority Monroe County, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities and the major fund of the Monroe County Comprehensive Plan Land Authority(the Authority), a component unit of Monroe County, Florida, as of and for the fiscal year ended September 30, 2024, and the related notes to the 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 governmental activities and the major fund of the Authority, as of September 30, 2024, 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 Opinions 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 Authority 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 opinions. 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. IIIIIIII ow IIIIIIII III'Z O III'° IIIIII IIIIIIII III 4 G III4 III': IIIIIIII IIIZ S"'"'O O ASS VJIZIANO i..AX C0NSJ IN 1 k"M0',111IvHill0`amemlIqtoIII('Ik"MII)(IqIIA!(IIAII Is�lihkilIliwirkofaIrka(�IulenkI IIIII +x'gIll ony Ili ar�(urns, V'I51(I`,I11i v, I11/,Ih(I I III"i n I 111 11I'II11oI I"n,I(I(1)I I'",31:11I Ifs 1t`aM I I"I I I III I!I I II Ik l l iIiOnl I ........ ......... ..... ,,,,, ,,,,, ..... ...... ...... ..... ...... ...... ....,. 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 opinions. 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 Authority'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. • Conclude whether, in our judgment, there are conditions or events considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable period of time. 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 the management's discussion and analysis and the pension and other postemployment benefits related schedules as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic 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 basic financial statements, and other knowledge we obtained during our audit of the basic 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 28, 2025, on our consideration of the Authority's Internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is 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 Authority'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 Authority's internal control over financial reporting and compliance. Fort Lauderdale, Florida March 28, 2025 3 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Management's Discussion and Analysis As management of the Monroe County Comprehensive Plan Land Authority(the Authority), we offer readers of the Authority's financial statements this narrative overview and analysis of the Authority's financial activities for the fiscal year ended September 30, 2024. Overview of the Financial Statements This discussion and analysis serve as an introduction and guide to the Authority's basic financial statements. The Authority's basic financial statements consist of three components: 1)government-wide financial statements, 2)fund financial statements and 3) notes to the financial statements. Following the notes is the required supplementary information. This section contains funding information about the Authority's pension plans. Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the Authority's finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the Authority's assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. The Statement of Activities presents information showing how the Authority's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Compensated absences, depreciation expense, and pension and other postemployment benefits (OPEB) related items do not use current financial resources and, therefore, are not reported as expenditures in the General Fund. Fund Financial Statements. The General Fund is used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, the General Fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. This information is useful in evaluating the Authority's ability to fund new acquisitions in the near-term. Since the focus of the General Fund is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the General Fund with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the General Fund Balance Sheet and the General Fund Statement of Revenues, Expenditures and Changes in Fund Balance provide a reconciliation to facilitate this comparison between fund level and government-wide activities. The Authority adopts an annual appropriated budget. A budgetary comparison statement has been provided to demonstrate compliance with this budget. Notes to the Financial Statements. The notes contained in this report provide additional information that is essential to a full understanding of the data provided. The notes are an integral part of the basic financial statements. Other Information. In addition to financial statements and accompanying notes, this report also presents supplementary information required by the Governmental Accounting Standards Board (GASB). 4 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Management's Discussion and Analysis Government-Wide Financial Analysis Statement of Net Position. In the Statement of Net Position, the Authority's assets total $98,180,282 and include cash and investments, amounts due from other governments for tourist impact tax and park surcharge fees, mortgages receivable, deposits, capital assets in the form of acquired land, equipment, and intangible assets in the form of affordable housing restrictions. The mortgage receivables consist of ten long-term balloon loans issued for the acquisition of affordable housing sites as described in Note 3, three of which are forgivable. Cash and investments are the assets typically of most importance to the Authority's Board of Directors and to the public, as these assets are the resources most readily available to meet current and future needs for property acquisition. The Authority's cash and investments total $31,607,356. This amount compares with $26,360,389 at the end of the previous fiscal year, an increase of$5,246,967. This is largely due to the current year excess of revenues over expenditures. Approximately 59% of the Authority's assets consist of land and intangible assets acquired for specific public purposes, approximately 8% consist of mortgages and approximately 32% are categorized as cash and investments. The Authority's current liabilities consist of accounts payable, accrued wages, and compensated absences (annual leave and sick leave)forecasted to be used during the upcoming year. The Authority's noncurrent liabilities consist of compensated absences that are forecasted not to be used during the upcoming year, as well as net pension and total OPEB liabilities. Total liabilities are $1,396,460. The Authority's resulting net position is categorized as net investment in capital assets, restricted specifically for the acquisition of land or the activities described in Section 380.0666, Florida Statutes (listed as restricted), and amounts which may be used for all purposes authorized by the Authority's enabling legislation (listed as unrestricted). The Authority's total net position is $97,211,921, an increase of$8,385,782 from prior year. Of this total, $57,938,670 is invested in capital assets, $14,287,421 is restricted and $24,985,830 is unrestricted. The following table provides a condensed comparison of the Authority's Statement of Net Position at year-end for 2024 and 2023: 2024 2023 Cash and investments $ 31,607,356 $ 26,360,389 Other assets 8,634,256 8,607,905 Capital assets 57,938,670 54,762,026 Total assets 98,180,282 89,730,320 Deferred outflows of resources 528,476 435,195 Current liabilities 152,550 86,135 Noncurrent liabilities 1,243,910 1,215,960 Total liabilities 1,396,460 1,302,095 Deferred inflows of resources 100,377 37,281 Net Position: Investment in capital assets 57,938,670 54,762,026 Restricted 14,287,421 12,550,316 Unrestricted 24,985,830 21,513,797 Total Net Position $ 97,211,921 $ 88,826,139 5 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Management's Discussion and Analysis Statement of Activities. In the Statement of Activities, the Authority's revenues total $12,378,173, and include intergovernmental revenue consisting of tourist impact tax and park surcharge fees and investment income consisting of interest on cash and investment accounts. Tourism impact tax represents a 1% tourist impact tax charged on short term rentals remitted back from the State of Florida Department of Revenue as a result of areas of critical state concern identified by the State of Florida within Monroe County. Park surcharge fees are fees that are remitted back from the State of Florida Department of Environmental Protection as a result of a surcharge for individuals attending state parks in identified areas of critical state concern within Monroe County, as enacted by Florida Statute 380.0685. The Authority's general revenues decreased by$1,597,954, compared to the prior year. The decrease in revenues from 2024 to 2023, was due primarily to decreased miscellaneous income resulting from less proceeds from land sales compared to fiscal year 2023. The program expenses in the Statement of Activities total $3,992,391, and consist of amounts paid as a result of general government expenses and land purchases. The $1,198,758 in general government expenses includes the Authority's personnel and operating expenses plus the amount by which compensated absences, pension and OPEB increased during the current year. Total program expenses for fiscal year 2024 compared to fiscal year 2023, decreased by$3,996,327, compared to the prior year. The following table provides a condensed comparison of the Authority's governmental activities at year- end for 2024 and 2023: 2024 2023 General revenues: Intergovernmental $ 8,439,345 $ 8,395,062 Investment income 1,507,234 1,087,457 Miscellaneous income 2,431,594 4,490,558 Land contributions - 3,050 Total general revenues 12,378,173 13,976,127 Program expenses: General government 1,198,758 2,443,102 Costs of land sold 2,402,864 5,071,658 Land contribution conveyances 390,769 473,958 Total program expenses 3,992,391 7,988,718 Increase in net position 8,385,782 5,987,409 Net Position, beginning of year 88,826,139 82,838,730 Net Position, end of year $ 97,211,921 $ 88,826,139 6 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Management's Discussion and Analysis Financial Analysis of the General Fund As noted previously, the Authority uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The Authority's General Fund financial statements provide information on near-term inflows, outflows and balances of spendable resources. This information can be useful in assessing the Authority's ability to fund new acquisitions in the near-term. Balance Sheet. The General Fund Balance Sheet lists the Authority's assets and liabilities in a manner similar to the government-wide Statement of Net Position. However, since the General Fund Balance Sheet is a fund-level presentation providing a near-term perspective, the assets section excludes the Authority's capital assets, the liability section excludes compensated absences and net pension and OPEB liabilities and deferred outflows, and inflows related to pensions and OPEB are excluded. Presented in this manner, the Authority's assets are $40,241,612, and its liabilities are $70,518. This statement identifies $40,171,094 of total fund balance. Of this total, $7,419,025 is attributable to funds the Authority may receive in the future from the repayment of mortgage loans and is, therefore, classified as nonspendable; $14,287,421 is attributable to funds restricted for land acquisition and is, therefore, classified as restricted; $4,293,248 is attributable to funds assigned for reserves; and $14,171,400 is attributable to funds which may be used for all purposes authorized by the Authority's enabling legislation and is, therefore, classified as unassigned. The Authority budgets its assigned for reserves fund balance based on contingency needs, end of year cash balance and Rate of Growth Ordinance (ROGO)Administrative Relief. Statement of Revenues, Expenditures and Changes in Fund Balance. The General Fund Statement of Revenues, Expenditures and Changes in Fund Balance lists the Authority's revenues and expenditures in a manner similar to the government-wide Statement of Activities. However, in this format the expenditures include land purchases (as capital outlay)and excludes pension related items, and compensated absences. Presented in this manner, the Authority's revenues are $12,378,173, and its expenditures are $7,120,465. General Fund Budgetary Highlights. The Authority budgets its revenues and expenditures on the same basis of accounting as presented in the basic financial statements of the General Fund, except that mortgage assistance cash outlays and receipts are budgeted as operating activities and compensated absences are not budgeted in personnel expenditures. In fiscal year 2024, the budget for personnel services was increased by$152,500 and capital outlay was reduced by$30,643 resulting in a total increase of$121,857. As shown in the Budget and Actual schedule, the Authority operated within the limits established by its adopted budget. Actual revenues were more than the budgeted amount by$526,833, while actual expenditures are $27,419,535 less than budget. Most of the revenue surplus consists of an increase in intergovernmental revenue and interest income offset by a decrease in miscellaneous income due to less proceeds from land sales. The investment income of$1,507,234 consists of interest. The majority of the expenditure surplus is due to fewer land acquisitions than budgeted. The schedule's positive expenditure variance includes budgeted reserves held for specific acquisition projects. 7 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Management's Discussion and Analysis Capital Asset Administration As shown in Note 4, the Authority's investment in capital assets amounts to $57,938,670, an increase of $3,176,644, compared to the prior year. The increase was the net result of land and intangible asset acquisitions less depreciation, conveyances, contributions, and write offs. Long-Term Debt. The Authority's long-term debt consists of compensated absences, pension, and OPEB liabilities. During the year, the Authority's long-term debt increased by$78,755, primarily due to an increase in the net pension liability. Requests for Information This financial report is designed to provide a general overview of the Authority's finances for all those with an interest in the government's finances. Questions concerning any of the information should be addressed to the Authority's Executive Director at 1200 Truman Avenue, Suite 207, Key West, FL 33040. 8 BASIC FINANCIAL STATEMENTS Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Statement of Net Position September 30, 2024 Assets and Deferred Outflows of Resources Assets: Cash and investments $ 31,607,356 Due from BOCC 985,507 Due from State of Florida 50,224 Mortgages receivable, net of allowance 7,419,025 Deposits 179,500 Capital assets —equipment, net of accumulated depreciation 9,322 Capital assets—land 40,924,414 Intangible assets 17,004,934 Total assets 98,180,282 Deferred outflows of resources: Pension related items 513,153 Other postemployment benefits related items 15,323 Total deferred outflows 528,476 Liabilities, Deferred Inflows of Resource and Net Position Current liabilities: Accounts payable 12,557 Accrued wages 57,961 Compensated absences 82,032 Total current liabilities 152,550 Noncurrent liabilities: Compensated absences 127,198 Net pension liability 1,040,071 Other postemployment benefits liability 76,641 Total noncurrent liabilities 1,243,910 Total liabilities 1,396,460 Deferred inflows of resources: Pension related items 80,826 Other postemployment benefits related items 19,551 Total deferred inflows 100,377 Net position: Net investment in capital assets 57,938,670 Restricted, land acquisition 14,287,421 Unrestricted 24,985,830 Total net position $ 97,211,921 The accompanying notes to the financial statements are an integral part of this statement. 9 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Statement of Activities Fiscal Year Ended September 30, 2024 General revenues: Intergovernmental $ 8,439,345 Investment income 1,507,234 Miscellaneous income 2,431,594 Total general revenues 12,378,173 Program expenses: General government 1,198,758 Cost of land sold 2,402,864 Land contribution conveyances 390,769 Total program expenses 3,992,391 Change in net position 8,385,782 Net position, beginning of year 88,826,139 Net position, end of year $ 97,211,921 The accompanying notes to the financial statements are an integral part of this statement. 10 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Balance Sheet—General Fund September 30, 2024 Assets Cash and investments $ 31,607,356 Due from BOCC 985,507 Due from State of Florida 50,224 Mortgages receivable, net of allowance 7,419,025 Deposits 179,500 Total assets $ 40,241,612 Liabilities and Fund Balance Liabilities: Accounts payable $ 12,557 Accrued wages 57,961 Total liabilities 70,518 Fund balance: Nonspendable, mortgage loans 7,419,025 Restricted, land acquisition 14,287,421 Assigned, reserves 4,293,248 Unassigned 14,171,400 Total fund balance 40,171,094 Total liabilities and fund balance $ 40,241,612 Amounts reported in the statement of net position differ from amounts reported above as follows: Fund balance—total governmental funds $ 40,171,094 Capital assets used in governmental activities are not financial resources and, therefore,are not reported above 57,938,670 Deferred outflows of resources related to pensions 513,153 Deferred outflows of resources related to other postemployment benefits 15,323 Compensated absences are not due and payable in the current period and,therefore, are not reported in the governmental funds (209,230) Net pension liability (1,040,071) Other postemployment benefits liability (76,641) Deferred inflows of resources related to pensions (80,826) Deferred inflows of resources related to other postemployment benefits (19,551) Net position of governmental activities $ 97,211,921 The accompanying notes to the financial statements are an integral part of this statement. 11 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Statement of Revenues, Expenditures and Changes in Fund Balance—General Fund Fiscal Year Ended September 30, 2024 Revenues: Intergovernmental $ 8,439,345 Miscellaneous income 2,431,594 Investment income 1,507,234 Total revenues 12,378,173 Expenditures: Current: Personnel 920,620 Operating 225,424 Capital outlay 5,974,421 Total expenditures 7,120,465 Net change in fund balance 5,257,708 Fund balance, beginning of year 34,913,386 Fund balance, end of year $ 40,171,094 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balance-total general fund $ 5,257,708 General fund reports capital outlays as expenditures. However, in the statement of activities, the cost of those assets is capitalized net of accumulated depreciation of$4,144 5,970,277 Land contributions, conveyances and sales are not reported in the general fund; this is the amount of land conveyances, land contributions and land sold during the fiscal year 2024 (2,793,633) Some expenses do not use current financial resources and, therefore, are not reported as expenditures in the general fund: Compensated absences 43,040 Change in pension balances (86,295) Change in other postemployment benefits balances (5,315) Change in net position of governmental activities $ 8,385,782 The accompanying notes to the financial statements are an integral part of this statement. 12 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 1. Nature of Organization and Significant Accounting Policies Reporting Entity—The Monroe County Comprehensive Plan Land Authority(the Authority) is a legally separate entity from Monroe County, Florida (the County). However, the Monroe County Board of County Commissioners serves as the governing board of the Authority; therefore, for financial reporting purposes, the Authority is considered a component unit of Monroe County, Florida. The financial statements of the Authority are included as a discretely presented component unit in the Monroe County, Florida Annual Comprehensive Financial Report. The Authority was established under Monroe County, Florida Ordinance 031-1986 pursuant to Florida Statute 380. Its purpose is to operate a land acquisition program in the County, to implement the Monroe County Comprehensive Plan and address issues created by it. Basis of Accounting—Government fund financial statements are organized for reporting purposes on the basis of a General Fund, the Authority's major fund, which accounts for all activities of the Authority and is accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available. "Measurable" means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Authority considers all revenues available if collected within 60 days after year-end. Expenditures are recognized when the related fund liability is incurred. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Budget—Prior to, or on September 30, the Authority's budget is legally enacted through passage of a resolution. Budgeted to Actual Expenditure reports are employed as a management control device during the year for the fund. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America (U.S. GAAP), except that mortgage assistance cash outlays and receipts are budgeted as operating activities and compensation accruals are not budgeted. Capital Assets—Capital assets are defined by the Authority as land and those assets with an initial, individual cost of$1,000 or more and an estimated useful life in excess of two years. Such assets consist of land and equipment which, when purchased, are recorded at the Authority's cost. Where land was acquired by donation on or prior to September 30, 2010, the asset was recorded at the Authority's transaction cost plus the higher of the tax assessed value at the time of donation or 115% of the 1986 tax assessed value. Where land was acquired by donation after September 30, 2010, the asset is recorded at estimated acquisition cost, derived from the Authority's transaction cost plus the tax assessed value at the time of donation. Land is not depreciated since it does not have a determinable useful life. Equipment is depreciated using the straight-line method over the useful life of the equipment which is typically five to ten years. 13 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 1. Nature of Organization and Significant Accounting Policies (Continued) Deferred Outflows and Inflows of Resources— In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The Authority has several items that meet this criterion— pension and OPEB related deferrals and contributions made to the plans subsequent to the measurement date. The statement of financial position also reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The Authority has several items that meet this criterion — pension and OPEB related deferrals. Long-Term Obligations— In the government-wide financial statements, long-term debt and other long- term obligations are reported as liabilities in the applicable governmental activities. Compensated Absences—The Authority'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 accumulated annual leave. In general, sick leave payments are granted upon termination of employment to employees with five years or more of credited service. The maximum payment is subject to percentage and maximum hour limitations. The amount of vested accumulated compensated absences payable based on the Authority's annual and sick leave policies, is reported as a liability in the government-wide financial statements. That liability includes earned but unused vacation and sick leave. Vacation leave is accrued based on length of employment. Sick time is paid out based on length of employment up to one half of all accrued sick leave, with a maximum of 120 days with 15 or more years of service. Net Position— Net position in the government-wide fund financial statements is classified as net investment in capital assets; restricted and unrestricted. Restricted net position represents constraints on resources that are either externally imposed by creditors, grantors, contributors or laws or regulations of other governments imposed by law through state statute. Fund Balances— In the governmental fund financial statements, fund balance is composed of five classifications designated to disclose the hierarchy of constraints placed on how fund balance can be spent. The government fund types classify fund balances as follows: Nonspendable— Include 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 inventories, prepaid amounts, assets held for sale and long-term receivables. Restricted—Constraints placed on the use of these resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors or other governments; or are imposed by law (through constitutional provisions or enabling legislation). Committed—Amounts that can only be used for specific purposes because of formal action (resolution or ordinance) by the government's highest level of decision-making authority. 14 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 1. Nature of Organization and Significant Accounting Policies (Continued) Assigned—Amounts that are constrained by the Authority's intent to be used for specific purposes, but do not meet the criteria to be classified as restricted or committed. Intent can be stipulated by the governing body, another body (such as a Finance Committee), or by the Executive Director to whom that authority has been given. Unassigned—This is the residual classification of the General Fund. Cash and Investments—The Authority's cash and investments consist of demand deposits and highly liquid investments with maturities of 90 days or less when purchased. 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 Authority has evaluated subsequent events through March 28, 2025, in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. New Governmental Accounting Standards Board(GASB)pronouncements— 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. The adoption of this statement did not have a material effect on the Authority's financials. The following are new accounting pronouncements that have been issued but are not yet effective: GASB Statement No. 102, Credit Risk Disclosures. The state and local governments face a variety of risks that could negatively affect the level of service they provide or their ability to meet obligations as they come due. Although governments are required to disclose information about their exposure to some of those risks, essential information about other risks that are prevalent among state and local governments is not routinely disclosed because it is not explicitly required. The objective of this statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. This statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constrain is a limitation imposed on a government by an external party or by formal action of the government's highest level of decision-making authority. Concentrations and constraints may limit a government's ability to acquire resources or control spending. Effective Date: The requirements of this statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. GASB Statement No. 103, Financial Reporting Model Improvements. The objective of this statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. This statement also addresses certain application issues. The requirements of this statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is permitted. 15 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 1. Nature of Organization and Significant Accounting Policies (Continued) GASB Statement No. 104, Disclosure of Certain Capital Assets. The objective of this Statement provides disclosure requirements for certain types of capital assets. This Statement also establishes criteria for governments to evaluate whether capital assets are capital assets held for sale. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Management is in the process of determining what impact, if any, implementation of the above statements may have on the financial statements of the Authority. Note 2. Deposits and Investments As of September 30, 2024, the Authority has the following deposits and investments: Demand deposits $ 2,325,755 Local Governmental Surplus Trust—Florida PRIME 29,281,601 Total deposits and investments $ 31,607,356 The Authority places its cash and investments on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation (FDIC)covers $250,000 for substantially all depository accounts. The Authority, from time to time, may have amounts on deposit in excess of the insured limits and the remaining balances are insured 100% 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. As of September 30, 2024, the demand deposits have a bank balance of$2,337,305. The Authority's investment policy is in accordance with Florida Statute 218.415. This policy authorizes investments in demand deposits, the Local Government Surplus Trust Fund, money market funds with the highest credit quality rating from a nationally recognized agency, or direct obligations of the United States Treasury. As of September 30, 2024, the Authority had $29,281,601 invested in the Local Government Surplus Trust Fund, all of which is invested in Florida PRIME. Florida PRIME is a qualifying external investment pool presented at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals; however, Florida PRIME may, on the occurrence of an event that has a material impact on liquidity or operations, impose restrictions on withdrawals for up to 48 hours. The Florida PRIME is rated by Standard & Poor's. The current rating is AAAm. The weighted average days to maturity (WAM)of the Florida PRIME at September 30, 2024, is 39 days. Next interest rate reset days for floating rate securities are used in the calculation of the WAM. The weighted average life (WAL) of Florida PRIME at September 30, 2024, is 74 days. The Florida PRIME was not exposed to any foreign currency risk during the period from October 1, 2023, through September 30, 2024. The Florida PRIME did not participate in any securities lending program in the period October 1, 2023 through September 30, 2024. 16 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 3. Mortgages Receivable Mortgages receivable as of September 30, 2024, are as follows: Second mortgage due from governmental agency, collateralized by land, payable in full November 2034, interest free (OR 1697-2076) and (as amended at OR 2442-1497). $ 1,500,000 Second mortgage due from governmental agency, collateralized by land, payable in full January 2034, interest free (OR 1965-1039). 2,210,000 First mortgage due from governmental agency, collateralized by land, payable in full September 2045, interest free (OR 1395-1409). 59,025 Third mortgage due from private company, collateralized by land, payable in full May 2050, interest free (OR 2967-1276). 1,089,000 Third mortgage due from private company, collateralized by land, payable in full September 2053, interest free (OR 1939-405). 1,500,000 Second mortgage due from governmental agency, collateralized by land, payable in full July 2040, interest free (OR 2475-1762). 836,000 Third mortgage due from governmental agency, collateralized by land, forgivable July 2040, interest free (OR 2475-1767). 800,000 Second mortgage due from governmental agency, collateralized by land, payable in full November 2041, interest free (OR 2541-877/884). 225,000 Third mortgage due from governmental agency, collateralized by land, forgivable November 2041, interest free (OR 2541-885/895). 550,000 First mortgage due from private company, collateralized by land and building, forgivable June 2027, interest free (OR 3177-673/677) 400,000 Total mortgages receivable 9,169,025 Allowance for forgivable mortgages receivable (1,750,000) Total mortgages receivables, net 7,419,025 The mortgages receivable are presented as nonspendable fund balance, which indicates they do not constitute "available spendable resources," even though they are a component of total assets. 17 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 4. Capital Assets A summary of changes in capital assets is as follows: Balance Balance September 30, September 30, 2023 Additions Deductions 2024 Capital assets, not depreciated: Land $ 39,048,754 $ 4,669,293 $ (2,793,633) $ 40,924,414 Intangible assets 15,699,806 1,305,128 - 17,004,934 Total capital assets, not depreciated 54,748,560 5,974,421 (2,793,633) 57,929,348 Capital assets, depreciated: Equipment 28,708 - - 28,708 Total capital assets, depreciated 28,708 - - 28,708 Less accumulated (15,242) (4,144) - (19,386) Total capital assets, depreciated, net 13,466 (4,144) - 9,322 Total capital assets, net $ 54,762,026 $ 5,970,277 $ (2,793,633) $ 57,938,670 Monroe County provides the Authority's office space at no rental cost; however, the Authority pays for utilities. The intangible assets referenced in the above table consist of affordable housing restrictions that run in favor of the Authority. Note 5. Long-Term Debt The following is a summary of changes in the Authority's long-term obligations for the fiscal year ended September 30, 2024: Balance Current October 1, September 30, Portion 2023 Increases Decreases 2024 of Balance Compensated absences $ 252,270 $ 70,088 $ (113,128) $ 209,230 $ 82,032 Net pension liability 929,746 248,370 (138,045) 1,040,071 - Total OPEB liability 65,171 11,470 - 76,641 - $ 1,247,187 $ 329,928 $ (251,173) $ 1,325,942 $ 82,032 18 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 6. Other Postemployment Benefits (OPEB) Plan General Information about the Other Postemployment Benefits: Plan Description—The Authority participates in the single-employer, defined benefits healthcare plan (the Plan)administered by Monroe County, Florida, (the County). Section 112.0801, Florida Statutes, requires the Authority to provide retirees and their eligible dependents with the option to participate in the Plan if the Authority provides health insurance to its active employees and their eligible dependents. The Plan provides medical coverage, prescription drug benefits, and life insurance to both active and eligible retired employees. The 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 No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The County may amend the Plan design, with changes to the benefits, premiums and/or levels of participant contribution at any time. In an open session, on at least an annual basis and prior to the annual enrollment process, the County approves the rates for the coming calendar year for the retiree and Authority contributions. The Authority is responsible for funding all obligations and the following disclosures are based on the Authority's total OPEB liability. Benefits Provided—Employees who retire as active participants in the Plan and were hired on or after October 1, 2002, may continue to participate in the Plan by paying the monthly premium established annually by the County. Employees who retire as active participants in the Plan, were hired before October 1, 2002, have at least 10 years of full-time service with the Authority and meet the retirement criteria of the Florida Retirement System (FRS) but are not eligible for Medicare, may maintain group insurance benefits with the Authority following retirement, provided the retiring employee pays the retiree contributions based on their years of service with Monroe County. Pre-Medicare retirees with at least 25 years of service who satisfy the rule of 70 pay the FRS subsidy for coverage, which is $7.50 per year of service month with a maximum of$225 per month. For those with 10 or more years of service, the retirees will pay flat amounts based on their respective medical plan election as shown in the following table. Pre-Medicare Retiree Contribution Years of Service Traditional High Deductible Health Plan Health Plan 10-19 $517 $433 20-24 259 216 25+ FRS Subsidy 56 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. 19 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 6. Other Postemployment Benefits (OPEB) Plan (Continued) An employee who retires as an active participant in the Plan, was hired prior to October 1, 2001, has at least 10 years of full-time service with the Authority, 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 Authority 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 Authority subsidy. Alternatively, retirees meeting these criteria may elect to leave the Authority health plan and receive a $250 per month payment from the Authority, payable for the lifetime of the retiree. Employees Covered by Benefit Terms—Eligibility for postemployment participation in the Plan is limited to full-time employees of the Authority. At September 30, 2024, there were no terminated employees entitled to deferred benefits. The membership of the Authority's medical plan as of the actuarial valuation date of September 30, 2024, consisted of: Active employees 6 Retirees and beneficiaries currently receiving benefit - Total memberships 6 Contributions—The County establishes, and may amend, the contribution requirements of Plan members. The required contribution is based on pay-as-you-go financing requirements, net of member contributions. Total OPEB Liability: The Authority's total OPEB liability of$76,641 was measured as of September 30, 2024, and was determined by an actuarial valuation as of September 30, 2024. The valuation incorporated updated census information and current plan cost information including retiree premiums and contributions. In addition, the discount rate changed from 4.06%to 3.81%, the trend rates were updated to an initial rate of 7.75% grading down to an ultimate rate of 4.00%. The initial rate and the grade down period is extended to account for recent inflationary pressures and price increases over the next couple years. Actuarial Methods and Assumptions—The valuation dated September 30, 2024, was prepared using generally accepted actuarial principles and practices, and relied on unaudited census data and medical claims data reported by the County. The total OPEB liability for the Authority in the September 30, 2024, actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: 20 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 6. Other Postemployment Benefits (OPEB) Plan (Continued) Actuarial Cost Method Entry Age Normal based on level of percentage of projected salary. Salary Increase Rate 3.00% per annum Discount Rate 4.06% per annum (Beginning of Year) 3.81% per annum (End of Year) Source: Bond Buyer 20-Bond GO index Marriage Rate The assumed percentage of married participants at retirement is 25% and is based on the current retired population of the Authority. Spouse Age Spouse dates of birth were provided by the Authority. Where this information was missing, male spouses were assumed to be three years older than female spouses. Medicare Eligibility All current and future retirees were assumed to be eligible for Medicare at age 65. Amortization Method Experience/Assumptions gains and losses were amortized over a closed period of 3.6 years starting the current fiscal year, equal to the average remaining service of active and inactive plan members (who have no future service). Plan Participation Percentage The assumptions for participation of eligible retirees in the Authority's postemployment benefit plan are: Retirees with 25+Years of Service: 100% Retirees with 20-24 Years of Service: 75% Retirees with <20 Years of Service: 50% The health care trend assumptions are used to project the cost of health care in future years. The actuarial assumptions include health care cost trend assumptions rates of 7.75% initially, reduced by decrements of 0.30%for ten years and 0.10% thereafter to an ultimate rate of 4.0%. The assumptions included a discount rate tied to the return expected on the funds used to pay the benefits, and assumes for an unfunded plan, that the benefits continue to be funded on a pay-as-you-go basis. Mortality rates were based on the Pub-2010 weighted base mortality table, projected generationally using Scale MP-2021, applied on a gender-specific and job class basis (teacher, safety, or general, as applicable). Expected retiree claim costs were developed using 24 months historical claim experience through September 2024. 21 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 6. Other Postemployment Benefits (OPEB) Plan (Continued) Changes in the Total OPEB Liability: Total OPEB Liability Balance at the beginning of the year $ 65,171 Changes for the year: Service cost 3,017 Interest cost 2,789 Changes in benefit terms 12,481 Difference between expected and actual experience (18,392) Changes in assumptions or other inputs 11,575 Benefit payment - Net change in total OPEB liability 11,470 Balance at the end of the year $ 76,641 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate—The following presents the total OPEB liability of the Authority, as well as what the Authority's total OPEB liability would be If it were calculated using a discount rate that Is 1-percentage-point lower(2.81%)or 1-percentage-point higher (4.81%)than the current discount rate: Current 1% Decrease Discount Rate 1% Increase 2.81% 3.81% 4.81% Total OPEB liability $ 88,000 $ 77,000 $ 67,000 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates—The following presents the total OPEB liability of the Authority, as well as what the Authority's total OPEB liability would be if it were calculated using a healthcare cost trend rates that are one-percentage-point lower (6.75% decreasing to 3%)or one-percentage-point higher(8.75% decreasing to 5%)than the current healthcare cost trend rates: 1% Decrease Current Trend 1% Increase (6.75% Decreasing (7.75% Decreasing (8.75% Decreasing to 3.0%) to 4.0%) to 5%) Total OPEB liability $ 76,000 $ 77,000 $ 78,000 22 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 6. Other Postemployment Benefits (OPEB) Plan (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2024, the Authority recognized a credit to OPEB expense of$5,315. At September 30, 2024, the Authority reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 3,088 $ 13,421 Changes of assumptions or other inputs 12,235 6,130 $ 15,323 $ 19,551 The amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: OPEB Amount Years ending June 30: 2025 $ (1,597) 2026 (1,662) 2027 (706) 2028 (248) 2029 (15) Thereafter - $ (4,228) Note 7. Florida Retirement System Retirement Plans General Information—All of the Authority's employees participate in the FRS. As provided by Chapters 121 and 112, Florida Statute, 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 (SBA). 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 Statute, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature. 23 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 7. Florida Retirement System Retirement Plans (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, or from the Web site: www.dms.myflorida.com/workforce operations/retirement/publications. Pension Plan: Plan Description—The Pension Plan is a cost-sharing, multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP)for eligible employees. Benefits Provided—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 1.6% 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. Special Risk Administrative Support class members who retire at or after age 55 with at least six years of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers)who retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0%of their final average compensation based on the five highest years of salary for each year of credited service. 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 2.0% 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 3.0% (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. For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of credited service for all these members and increasing normal retirement to age 65 or 33 years of service regardless of age for Regular, Senior Management Service, and Elected Officers class members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support class members. Also, the final average compensation for all these members will be based on the eight highest years of salary. 24 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 7. Florida Retirement System Retirement Plans (Continued) As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of- living adjustment is a proportion of 3 %determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3%. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with an FRS employer for a period not to exceed 96 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. Contributions-Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are required to contribute 3% 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 established by the Florida Legislature. These rates are updated as of July 1 of each year. The employer contribution rates by job class for the periods from October 1, 2023 through June 30, 2024, and from July 1, 2024 through September 30, 2024, respectively, were as follows: Regular-13.57% and 13.63%; Special Risk Administrative Support-39.82% and 39.82%; Special Risk-32.67% and 32.79%; Senior Management Service-34.52% and 34.52%; Elected Officers-58.68% and 58.68%; and DROP participants-21.13% and 21.13%. These employer contribution rates include 2.00% and 2.00% HIS Plan subsidy for the periods October 1, 2023 through June 30, 2024, and from July 1, 2024 through September 30, 2024, respectively. The Authority's contributions to the Pension Plan totaled $121,190 for the fiscal year ended September 30, 2024. Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions-At September 30, 2024, the Authority reported a liability of$827,920 for its proportionate share of the Pension Plan's net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability as determined by an actuarial valuation as of July 1, 2024. The Authority's proportionate share of the net pension liability was based on the Authority's fiscal year 2024 contributions relative to the fiscal year 2024 contributions of all participating members. At June 30, 2024, the Authority's proportionate share was 0.0002140%, which was an increase of.0002491%from its proportionate share measured as of June 30, 2023. 25 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 7. Florida Retirement System Retirement Plans (Continued) For the fiscal year ended September 30, 2024, the Authority recognized pension expense of$202,691. In addition, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences between expected and actual experience $ 83,643 $ - Changes of assumptions 113,473 - Net difference between projected and actual earnings on Pension Plan investments - 55,028 Changes in proportion and differences between Authority Pension Plan contributions and proportionate share of contributions 218,287 - Authority Pension Plan contributions subsequent to the measurement date 29,805 - $ 445,208 $ 55,028 The deferred outflows of resources related to the Pension Plan, totaling $29,805, resulting from Authority contributions to the Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2025. Other amounts reported as deferred outflows of resources and deferred Inflows of resources related to the Pension Plan will be recognized in pension expense as follows: Years ending June 30: 2025 $ 61,475 2026 206,567 2027 59,594 2028 20,748 2029 11,991 Thereafter - $ 360,375 Actuarial Assumptions—The total pension liability in the June 30, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% Salary increases 3.50.%, average, including inflation Investment rate of return 6.70%, net of Pension Plan investment expense, including inflation Mortality rates were based on the PUB2010, base table varies by member category and sex, projected generationally with Scale MP-2021. The actuarial assumptions used in the July 1, 2023, valuation were based on the results of an actuarial experience study for the period July 1, 2018, through June 30, 2023, and were the assumptions used to determine the total pension liability as of June 30, 2024. 26 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 7. Florida Retirement System Retirement Plans (Continued) The long-term expected rate of return on Pension Plan investments was not based on historical returns but instead is based on a forward-looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions and includes an adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation Return Return Deviation Cash 1.0% 3.3% 3.3% 1.1% Fixed income 29.0% 5.7% 5.6% 3.9% Global equity 45.0% 8.6% 7.0% 18.1% Real estate (property) 12.0% 8.1% 6.8% 16.6% Private equity 11.0% 12.4% 8.8% 28.4% Strategic investments 2.0% 6.6% 6.2% 8.7% 100.0% (')Assumed inflation—Mean 2.4% 1.5% Discount Rate—The discount rate used to measure the total pension liability was 6.70%. The Pension Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculation of the total pension liability is equal to the long-term expected rate of return. Sensitivity of the Authority's Proportionate Share of the Net Position Liability to Changes in the Discount Rate—The following represents the Authority's proportionate share of the net pension liability calculated using the discount rate of 6.70%, as well as what the Authority's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one-percentage-point lower(5.70%)or one-percentage-point higher(7.70%)than the current rate: Current 1% Decrease Discount Rate 1% Increase 5.70% 6.70% 7.70% $ 1,456,282 $ 827,920 $ 301,533 Pension Plan Fiduciary Net Position—Detailed information regarding the Pension Plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Annual Comprehensive Financial Report. 27 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 7. Florida Retirement System Retirement Plans (Continued) HIS Plan: Plan Description—The HIS Plan is a cost-sharing, multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of state-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided— For the fiscal year ended September 30, 2024, eligible retirees and beneficiaries received a monthly HIS payment of$7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of$45 and a maximum HIS payment of$225 per month. To be eligible to receive these benefits, a retiree under a state-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Contributions—The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2024, the HIS contribution for the period October 1, 2023 through September 30, 2024, was 2.0%. The Authority contributed 100% of its statutorily required contributions for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or available funds fall to provide full subsidy benefits to all participants, benefits may be reduced or cancelled. The Authority's contributions to the HIS Plan totaled $11,973 for the fiscal year ended September 30, 2024. Pension Liability Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions—At September 30, 2024, the Authority reported a liability of$212,151 for its proportionate share of the HIS Plan's net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2024. The Authority's proportionate share of the net pension liability was based on the Authority's 2024 fiscal year contributions relative to the 2024 fiscal year contributions of all participating members. At June 30, 2024, the Authority's proportionate share was 0.001414%, which was an increase of 0.000305%from its proportionate share measured as of June 30, 2024. 28 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 7. Florida Retirement System Retirement Plans (Continued) For the fiscal year ended September 30, 2024, the Authority recognized pension expense of$21,649. In addition, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 2,049 $ 407 Changes of assumptions 3,754 25,116 Net difference between projected and actual earnings on Pension Plan investments - 76 Changes in proportion and differences between Authority Pension Plan contributions and proportionate share of contributions 59,017 199 Authority Pension Plan contributions subsequent to the measurement date 3,124 - $ 67,944 $ 25,798 The deferred outflows of resources related to the HIS Plan, totaling $3,124, resulting from Authority contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the HIS Plan will be recognized in pension expense as follows: Years ending June 30: 2025 $ 9,127 2026 8,301 2027 6,271 2028 6,962 2029 6,554 Thereafter 1,807 $ 39,022 Actuarial Assumptions—The total pension liability in the July 1, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% Salary increases 3.50% average, including inflation Municipal bond rate 3.93% The actuarial assumptions used in the July 1, 2024, valuation were based on the results of an actuarial experience study for the period July 1, 2018, through June 30, 2023. The municipal rate used to determine total pension liability increased from 3.65%to 3.93%. 29 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 7. Florida Retirement System Retirement Plans (Continued) Discount Rate—The discount rate used to measure the total pension liability was 3.93%. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. Sensitivity of the Authority's Proportionate Share of the Net Position Liability to Changes in the Discount Rate—The following represents the Authority's proportionate share of the HIS net pension liability calculated using the discount rate of 3.93%, as well as what the Authority's proportionate share of the HIS net pension liability would be if it were calculated using a discount rate that is one-percentage-point lower (2.93%)or one-percentage-point higher (4.93%)than the current rate: Current 1% Decrease Discount Rate 1% Increase 2.93% 3.93% 4.93% $ 241,507 $ 212,151 $ 187,781 HIS Plan Fiduciary Net Position —Detailed information regarding the HIS Plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Annual Comprehensive Financial Report. Investment Plan: The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The Investment Plan is reported in the SBA's annual financial statements and in the state of Florida Annual Comprehensive Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Authority employees participating in DROP are not eligible to participate in the Investment Plan. 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 Authority Officers, etc.)as the Pension 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 the Investment 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 for the period October 1, 2023, through September 30, 2024. Allocations to the investment member's accounts for the periods from October 1, 2023 through June 30, 2024 and from July 1, 2024 through September 30, 2024, respectively, as established by Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows: Regular class 11.30%; Special Risk Administrative Support class 12.95%; Special Risk class 19.00%; Senior Management Service class 12.67% and Authority Elected Officers class 16.34%. 30 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 7. Florida Retirement System Retirement Plans (Continued) For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the member must have the years of service required for Pension Plan vesting (including the service credit represented by the transferred funds)to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within the five-year period, the employee will regain control over their account. If the employee does not return within the five-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2024, the information for the amount of forfeitures was unavailable from the SBA; however, management believes these amounts, if any, would be immaterial to the Authority. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan or remain in the Investment Plan and rely upon that account balance for retirement income. The Authority's Investment Plan pension expense totaled $5,812 for the fiscal year ended September 30, 2024. Note 8. Fund Balance As a general rule, the Executive Director will select the most restricted resource permissible and available to fund a given activity. This practice will generally track the following hierarchy: miscellaneous funds consisting of grants restricted for specific purposes, State Park and Tourist Impact Tax funds, and lastly unrestricted sources such as interest income and unrestricted miscellaneous funds. In terms of fund balance classification, expenditures are generally to be spent from restricted fund balance first, followed in order by committed fund balance, assigned fund balance, and lastly unassigned fund balance as applicable. The Executive Director has the authority to deviate from this practice if it is in the best interest of the Authority. The following schedule provides management and citizens with information on the position of the General Fund balance that is available for appropriation. Total fund balance—General Fund $ 40,171,094 Less: Nonspendable, mortgage loans 7,419,025 Restricted for land acquisition and affordable housing 14,287,421 Assigned, reserves 4,293,248 Unassigned fund balance $ 14,171,400 31 Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Notes to Financial Statements Note 9. Risk Management The Authority 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 Authority participates in the coverage provided by the County 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 Authority 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 10. Commitments The Authority had $4,045,82 of commitments to acquire various properties as of September 30, 2024. 32 REQUIRED SUPPLEMENTARY INFORMATION (Unaudited) 0 00 N O Ln O (O (o 00 � 00 00 CO ' V N O c'7 00 LO 00 (O (O O N CO 00 CO (O V CO 1— CO CO p 00 I� O 00 LO N N EA EA EA (A (A 0 00 I— 1-- N O (O (O O 00 LO I— (O O O N N O co O (O LO 00 (O co O O co C7 N LO C7 o0 C7 p 00 O (O N N N (A EA (A (A (A N + C � LO O 00 co Lc7 (O (O O co (O a> O U 00 O 0000 1— 0 0 CO N LO O N O Q O N V N LO O O 00 O LO L O — _0 O (O V O V O ~ -O >,L N (> N Q O U o fA fA fA fA fA O O E o N 7 N o (O 0) O O O O O I-- E +�-� E N a) (O (o ' N 00 I— C7 O O ' m N V C7 IT IT LO O O C O C N c'7 V O V V O -p NIT LO E O a) o T U (7 E O z O O = N m O EA EA LOE 0-Q Ln _ N O i C o O O m O I— co CO I-- O 1— co z O N O L j o .C LO N 00 V N O N (o O- — N (o N C7 LO O V LO [- N m p o N LO Lo m t 0 O V N O o m m O U o >, fA (A (A fA fA (n a-- 'O U O N N 0 M O CO o m m o p M o Cl) o-0 cc r> 00 v 00 cY) O (o o — N C7 0 cO 0') 1— 1— O �2 � o a co O LO O V 00 N O C ) N a) _ N N N N V O LO LO O o L O E cc N LO co V U o -o � N 7 N Q N o 0 'a EA EA EA EA EA m `� m L N cc N O c4 m 'o 0 r O N 0O c0 00 O LO ' r r le O O O O f, M O U Q N i R N M N co I LO co r m Q (6 m O N co f- cD x J N cD N O N O o >' O } m U C C L IyJ o -o o m 0 a 64 64 64 (1) (1) _0 N m M O m Qo m m co o .> J LL N O E (6 o N q.O C: m R U E m a o m ° o E >, 7 O 0o N a) Q E m O o != o Q m Y Y Y T 0 +�+ m C o .. Q -O icf) N i C L1J o)-o o O N N 00 O c�N N vOi w .� N o N C O O N .— 7 N Qo fA cA Q O -0 N m >, 7 O (6 (6 0) O Q Q 0 a) R � E I I E N U) O oO M 0m � Qm � m O m `O n n o m m a> a> a m m m o >U ~ Za H ( U Z HHc z e W m U m V (O (O o o (NO (NO O 1p 1p (O Q V V N 0-0 V (O (O 0 p M M ON 0 0 00 00 N O p� 01 O M d) LO O ER ER ER ER ER M(ONO rV VI� Vro o oN r 00 O O O N 00 NN N N O ER ER ER ER ER C o V V R Cl) Cl) O d) d) o o a N N N _ M cr N o O O r r 01 00 O p (O (O S N 0 N N LO 00 U) N N In JO V) ER a ER ER ER c E 00 a o 0 0 0 o H uO1i u°1i LO 00 N r r �. r � M o p 0 0 t V N 0 00 00 N N N O co co In V I= N N C r O (O o0 a/ a/ a a O va va y » » » w a Z p 0-00 0 a, O O N Cl) r- r- 0-0 0-0M d) r 00 00 O d) o r r a/ 1p 1p V 1p R a co ON O o0 00 N N O s ON N N 0) Up E O N N 0) 00 LL E N 00 N O N w y � (» (» w Q va va (» a r w 0 V) N p V) O ( O Cl) -p Cl) N 0) O o o W a) N N (O `p W O d) 0 N C 'O O N N I� o Q E N uj p o0 co O c N co 00 M 0) p ` W 0 O M O 00 s W 0 N N O (V a ' _ O1 y R N � O V) V) � } ER ER ER R 0 +- 'O O O o 0) O V N N 0) m O Cl) O 00 00o 00 00 (O 00IL 00 N O1 O O A 00 00 (O 00 Q O O (p (O 0 �= NO M M V N N O Cl) (O O N M M (h O y O N d) t O O V) V) a V) ER ER M o o 00 r o_ o_ LO N N (O o0 M 0-0 0-0O N (; (O 00 U NO O (O M cq a/ N00 LO O (O (O O 00 M N 00 1p Cl) � N M 00 O ER ER U V) V) ER In 0 0) 1p N N (O N N o o r r- ( 0-0M d) N N Cl) 00 M (3 (3 N 00 M (M 1p ON 00 r m N � ON 00) 00) d) O V) ER V) ER ER e O 00 O O 00 N N a) t` G a) W o o a o +' O N N a) N Or 0 N M O >- N O 00 LO N Cl) N w O O I- 00 s c 3 R (n v) v> (A v> c JLL coop ++ C j O o — Q a c9 o o R � w d U E > `o R > d R Q Q - m a o O w o R o t 0 w w > 2 o R ° `o `o Q ° 0 `o m Q O ++ i 45 -2 aU w cm o a O o U 0 > ° 0 > 0 0 A Q N - a _ .o p Q Q C C Q. V O O a o 0 Q ` R N -0 p' ,V) 3 d 3 U! 0 0 m .a Q Q— a) Q ° — o O N Il O o L > O R O a) L > O 4 w Q A= w 0 U 1/1 r r r L R C o E N E r Q 2 Q J 0 0 0 0 0 Q Q Q Q a 0 0 0 Q 0 z 0 N Cl) Cl) 0) (O (O 0 ,It It 0 p l0 O N (0 0 l0 (O (O N 0 ON 0 (O o0 N LO N N M O (M 0 O ER ER ER ER ER 0 M O V V LO N Cl) 0) 0 r r (O (O r (M V 0 (p r r N 0 O O 0 r 0) O co Cl) I� (0 N 00 N M CJ N N 0 ER ER ER ER ER 0 V V (O (O V 0) 0 00 00 N I� N Q o I� N N N 0 00LO R (O �. 0 0 Cl)r Cl) (D a 0 V V [- � S0 N M N R O ER 6% J y C S a C (`no oN ((00 ((0 co 00 LO r_ 0) r N r 0 0 U 0) r � M 0 O O 0 0)" 0c0 LO u O cN0 (O C N 0 N Cl) N R N N a) a 0 6% (» c (» (» (» w c t_ Z R 0 N O R O' l0 l0 It a c co R y 0 0 co p Cl) a) m D V V 0 y 7 a) N 0 N M N ��.+ E N N O O a) r y 0 6% 6% Q V) ER ER a) y C 0 a) 0 y R 0 0) co '- 'O 00 00 Cl) 11J d) (O O 0 7 a) l0 l0 (O 7 O (O O Q o Q 'O O O 0 o 0- y N 00 (p p 0 C N l0 l0 M r O C 0 O O O N 0 uJ 0 p (O L N 0 Cl) M M O N (M a R y R 0 ER ER N } V) V) ER O 0 N O r 00 00 0) 0 0 O N N (O O1 00 d) ( L C N N (O ( Q O 00 0 p (O N 7 0 l0 l0 V � a) N 0 M Q N M L O Cl) M a) } 0 r 0 V) V) ER ER ER y O LO o M a) N r 00 N (M 0 N d) d) o 0 0 M 0 y o o 0 ER 6% 6% 6% U) 0 N 0) 0) (O p N 0 ) 0) (O Cl) N l0 o Cl) N N l0 0 N (O d) p � N I- r V r 0 0 M 0 (p 0 C\l0 V 0 N It 0 ER ER U) U) ER o In N Cl) Cl) 00 00 L o e r N N_ 00 In O N 1n 00 O a 00 O Cl) 00 i N O N 1n N w O O Cl) s O 7 l6 v> v> v> v> v> c `O LL J (000 O — U) o O w o Q d O c6 o > i R O_ O_ O_ a) CL w o m 5 m > a- t 0 w w O N 0 0 U y C O' O O U, O_ 00 N O R Q 0 E O R R 0 y � L.. O o m m m m > 0 o C > > U N - a -CL O 0 RCL O U lL o o > o m o O ° > R Q r O_ O_ 0 O_ y 'y '0 d d d y y y y T � a) .B .4 y .2 `o O w w w Q 15 w U s }•N R r r r L R o N r 0 2 O - 0 0 a J Q Q Q Q a 0 0 0 Q 0 z Monroe County Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Required Supplementary Information (Unaudited) Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual—General Fund (Budgetary Basis) Fiscal Year Ended September 30, 2024 Variance Budget with Final Original Final Actual Budget Revenues: Intergovernmental $ 6,992,070 $ 6,992,070 $ 8,439,345 $ 1,447,275 Miscellaneous income 4,481,000 4,609,270 2,431,594 (2,177,676) Investment income 250,000 250,000 1,507,234 1,257,234 Total revenues 11,723,070 11,851,340 12,378,173 526,833 Expenditures: Personnel 844,000 996,500 920,620 75,880 Operating 308,000 308,000 225,424 82,576 Capital outlay 33,266,143 33,235,500 5,974,421 27,261,079 Total expenditures 34,418,143 34,540,000 7,120,465 27,419,535 Excess(deficiency)of revenues over(under)expenditures (22,695,073) (22,688,660) 5,257,708 27,946,368 Fund balance, beginning of year 27,537,401 Fund balance,end of year 32,795,109 Reconciliation of budgetary to full accrual basis: Reconciling items: Mortgages receivables 7,419,025 Compensation accrual (43,040) Fund balance, end of year(full accrual) $ 40 171,094 36 OTHER REPORTS 1,11'sim IRS111A US III..JII..J11P 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 Governing Board Monroe County Comprehensive Plan Land Authority Monroe County, FL We have audited, in accordance with the 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 (Government Auditing Standards), the financial statements of the governmental activities and the major fund of the Monroe County Comprehensive Plan Land Authority(the Authority), a component unit of Monroe County, Florida, as of and for the year ended September 30, 2024, and the related notes to the financial statements, and have issued our report thereon dated March 28, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority'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 opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority'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 entity'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. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free of 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. IIIIIIII ow IIIIIIII III'Z O III'° IIIIII IIIIIIII III 4 G III4 III': IIIIIIII IIIZ S"'"'O O ASS VJIIrAI III i..AX C0NSVJ NG 37 kS61M0',111I"Hi��0"Veml gtoIII('IP2`M11)((q]A!(IIA �s�l lkllwiwirk('Ilwkapniwlenkf iu�I +X'gId orri Ili u)s�(urns, V1s1TI;IIIII',:oIm/,dI,I I((I,,I,I In ol !I)ioYI m f(I on I("?3I:111 lf�l ,11AI"III V 1 I''"M I[I 'lll a do I),d, ........ ......... ..... ,,,,, ,,,,, ..... ...... ...... ..... ...... ...... ....,. 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 entity'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 entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Fort Lauderdale, Florida March 28, 2025 38 Monroe County, Florida Comprehensive Plan Land Authority (A Component Unit of Monroe County, Florida) Summary Schedule of Prior Year Findings Status of Prior Year Audit Finding None noted. 39 1,11'sim IRS111A US III..JII..J11P Management Letter in Accordance with Chapter 10.550, Rules of the Auditor General of the State of Florida Governing Board Monroe County Comprehensive Plan Land Authority Monroe County, Florida Report on the Financial Statements We have audited the financial statements of the Monroe County Comprehensive Plan Land Authority(the Authority), a component unit of Monroe County, Florida, as of and for the fiscal year ended September 30, 2024, and have issued our report thereon dated March 28, 2025. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; 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 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 and our Independent Accountant's Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 28, 2025, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l., 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 findings and recommendations made in the preceding 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 the management letter, unless disclosed in the notes to the financial statements. The legal authority is disclosed in Note 1 to the financial statements. Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the Authority met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the Authority did not meet any of the conditions described in Section 218.503(1), Florida Statutes. IIIIIIII ow IIIIIIII III'Z O III'° IIIIII IIIIIIII III 4 G I II4 III': IIIIIIII IIIZ S"'"'O O ASS VJIIZW III i..AX 0I�SVJ 40 k"M0',111 ivHi��0`ameml gtoiii('Ik"MIi)((qniA!(iiA �s�l lkiliwiwirkofairkan�iulen( f 'iu�I +X'gIll ony Ili ar�(urns, V'IS I(1,;li n v, rn/,d I I W"furmn(�in to rrn,f(I(n 1(�s',3 rr 1111 It`aIV111"I II l I I iiia I 1, ........ ......... ..... ,,,,, ,,,,, ..... ...... ...... ..... ...... ...... ....,. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the Authority. It is management's responsibility to monitor the Authority's financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. 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. Specific Information As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Authority reported (unaudited): a. The total number of Authority employees compensated in the last pay period of the Authority's fiscal year was 6. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the Authority's fiscal year was 7. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency was $830,602. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency was $157,788. e. There is no construction project with a total cost of at least$65,000 approved by the Authority that is scheduled to begin on or after October 1 of the fiscal year being reported. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the Authority amends a final adopted budget under Section 189.016(6), Florida Statutes. This is disclosed as required supplementary information in the Authority's September 30, 2024, financial statements. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to 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 note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, Monroe County, the Authority, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Fort Lauderdale, Florida March 28, 2025 41 1,11'sim IRS111A US III..JII..J11P Independent Accountant's Report on Compliance With Section 218.415, Florida Statutes Governing Board Monroe County Comprehensive Plan Land Authority Monroe County, Florida We have examined the Monroe County Comprehensive Plan Land Authority's (the Authority), a component unit of Monroe County, Florida, compliance with Section 218.415, Florida Statutes (the specified requirements), during the period of October 1, 2023 to September 30, 2024. Management of the Authority is responsible for the Authority's compliance with the specified requirements. Our responsibility is to express an opinion on the Authority's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the AICPA. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Authority complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Authority 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 we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Authority's compliance with the specified 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 Authority complied, in all material respects, with the specified requirements, during the period of October 1, 2023 to September 30, 2024. This report is intended solely for the information and use of the Florida Auditor General, the Authority, and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. 1.417 Fort Lauderdale, Florida March 28, 2025 IIIIIIII ow IIIIIIII III'Z 0III'° IIIIII IIIIIIII III 4 G III4 III': IIIIIIII IIIZ S"'"'0 0III': ASS UIIrAI III i..AX UNSU NG 42 k"M0',111IvHiII0`amemlIqtoIII('Ik"MII)(IqIIA!(IIAII Is�lihkilIIliwirkofaIrka(�IulenkI 'IIIII +X'gIll ony Ili ar�(urns, VIs1(l`.I I II I'.I:o I11/,Ih(I I III"i n I In 11I'II11oI I"n,I(I(I)II'",31:11I Ifs 1t`aM I I"I I I III I!I I I l l iIiOnl I ........ ......... ..... ,,,,, ,,,,, ..... ...... ...... ..... ...... ...... ....,.