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Home My WebLink AboutFiscal Year 2025 20 - 5 Monroe County, Florida Passenger Facility Charges Independent Auditor's Schedule of Passenger Facility Receipts and Disbursements September 30, 2025 PURVIs GiIAY IIE R U II IF"II E IL) F!° U IB L IV C A C C 0 U Vow II A N � INDEPENDENT AUDITOR'S REPORT AND SCHEDULE OF PASSENGER FACILITY CHARGES RECEIPTS AND DISBURSEMENTS MONROE COUNTY, FLORIDA PASSENGER FACILITY CHARGES SEPTEMBER 30, 2025 TABLE OF CONTENTS Independent Auditor's Report................................................................................................................ 1-2 Schedule of Passenger Facility Charge Program: Schedule of Passenger Facility Charges Receipts and Disbursements.....................................................3 Notes to Schedule of Passenger Facility Charges Receipts and Disbursements......................................4 Independent Auditor's Report on Compliance for the Passenger Facility Charge Program and on Internal Control Over Compliance Required by the Passenger Facility Charge Audit Guidefor Public Agencies.................................................................................................................... 5-7 P U RV Is G 111 AY INDEPENDENT AUDITOR'S REPORT Honorable Board of County Commissioners Monroe County, Florida Opinion We have audited the accompanying Schedule of Passenger Facility Charges (PFC) Receipts and Disbursements (the Schedule), including PFC quarterly reports, of Monroe County, Florida (the County) for the passenger facility charge program, as of and for the year ended September 30, 2025, and the related notes to the Schedule. In our opinion,the Schedule presents fairly, in all material respects,the passenger facility charges received and disbursed by the County for the passenger facility charge program for the year ended September 30, 2025, in accordance with the financial reporting provisions of the Federal Aviation Administration (FAA) described in Note 2. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Schedule section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter—Basis of Accounting We draw attention to Note 2 of the Schedule, which describes the basis of accounting. The Schedule is prepared by the County, in accordance with the financial reporting provisions of the FAA,which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the FAA. As a result, the Schedule may not be suitable for another purpose. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Schedule Management is responsible for the preparation and fair presentation of the Schedule in accordance with the financial reporting provisions of the FAA, as described in Note 2. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the Schedule that is free from material misstatement, whether due to fraud or error. CERTIFIED PUIBLIC ACCOUNTANT (i'ai nes i'llle �� Oc' is �� Fafla1hdus,ec� � Sarasota � Orlando �� 1'"Unp a purviscgray.com Nld^nnt"xs o,',A oub rk a n"'Ind Fpr:btoaNa Pu bhQ:A c ouixauos 1 Honorable Board of County Commissioners Monroe County, Florida INDEPENDENT AUDITOR'S REPORT Auditor's Responsibilities for the Audit of the Schedule Our objectives are to obtain reasonable assurance about whether the Schedule as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS 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 Schedule. In performing an audit in accordance with GAAS, we: ■ Exercise professional judgment and maintain professional skepticism throughout the audit. ■ Identify and assess the risks of material misstatement of the Schedule,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 Schedule. ■ 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 County'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 Schedule. 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. Restriction on Use This report is intended solely for the information and use of the management of the County,the Board of County Commissioners, and the FAA, and is not intended to be, and should not be, used by anyone other than these specified parties. i-owrvis March 13, 2026 Sarasota, Florida 2 MONROE COUNTY, FLORIDA SCHEDULE OF PASSENGER FACILITY CHARGES RECEIPTS AND DISBURSEMENTS FISCAL YEAR ENDED SEPTEMBER 30,2025 Fiscal Quarter Ended Year Ended December 31, March 31, June 30, September 30, September 30, 2024 2025 2025 2025 2025 Receipts Receipts $ 647,096 $ 869,517 $ 769,682 $ 859,605 $ 3,145,900 Investment Income 58,985 60,853 61,067 61,238 242,143 Total Revenues 706,081 930,370 830,749 920,843 3,388,043 Disbursements Application#18: Replace Airport Beacon - Design and Construction - - 205,961 - 205,961 KW Customs 5,213 170,559 352,022 91,253 619,047 Total Application#18 5,213 170,559 557,983 91,253 825,008 Application#19: PFC Administration- EYW Planning Studies 1,653 - - 876 2,529 Total Application#19 1,653 - - 876 2,529 Application#20: PFC Administration- EYW Planning Studies 6,030 6,378 7,780 5,060 25,248 Line of Credit Interest 236,273 - 101,082 103,365 440,720 Total Application#20 242,303 6,378 108,862 108,425 465,968 Application#21: PFC Administration- EYW Planning Studies - - - 389 389 Airport Furniture - - 883,376 - 883,376 Line of Credit Interest - - 17,436 - 17,436 Total Application#21 - - 900,812 389 901,201 Total Disbursements 249,169 176,937 1,567,657 200,943 2,194,706 Net PFC Inflows(Outflows) $ 456,912 $ 753,433 $ (736,908) $ 719,900 $ 1,193,337 Receipts received and disbursements made on approved projects in the schedule above agree to the Passenger Facility Charge Quarterly Status Reports(PFC Reports)submitted by Monroe County, Florida to the Federal Aviation Administration (FAA). 3 MONROE COUNTY, FLORIDA NOTES TO SCHEDULE OF PASSENGER FACILITY CHARGES RECEIPTS AND DISBURSEMENTS FISCAL YEAR ENDED SEPTEMBER 30,2025 Note 1-General The accompanying Schedule of Passenger Facility Charges Receipts and Disbursements (the Schedule) presents the activity of the passenger facility charge program of Monroe County, Florida (the County) for the year ended September 30, 2025. All passenger facility charges receipts and disbursements are included in the accompanying Schedule. Because the Schedule presents only a select portion of the operations of the County, it is not intended to, and does not, present the financial position, change in net position, or cash flows of the Key West International Airport or of Monroe County, Florida. The passenger facility charge program authorizes public agencies controlling commercial service airports to impose a charge of$1, $2, $3, or$4.50 per enplaned passenger. The objective of such proceeds from such passenger facility charges (PFCs) is to finance approved, eligible, airport-related projects that preserve or enhance safety or security of the national air transportation system, reduce noise or mitigate noise impacts resulting from an airport that is part of such system, or furnish opportunities for enhanced competition between or among air carriers. Note 2-Basis of Accounting The Schedule is prepared on the cash basis of accounting. Under the cash basis, disbursements are recognized when paid rather than when the obligation is incurred, and receipts are recorded when cash is received rather than when earned. However, the County's financial statements for the Key West International Airport major enterprise fund, which includes the passenger facility charge program are prepared on the accrual basis of accounting and such transactions are recorded in the financial statements when revenue is earned, or expenses are incurred. The information in this Schedule is presented in accordance with the requirements of the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration in September 2000. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the County's financial statements. 4 U R V I s G 111 AY INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR THE PASSENGER FACILITY CHARGE PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE PASSENGER FACILITY CHARGEAUDIT GUIDE FOR PUBLICAGENCIES Honorable Board of County Commissioners Monroe County, Florida Report on Compliance for the Passenger Facility Charge Program Opinion on Compliance for the Passenger Facility Charge Program We have audited Monroe County, Florida's (the County) compliance with the types of compliance requirements described in the Passenger Facility Charge Audit Guide for Public Agencies (the Guide), issued by the Federal Aviation Administration,that could have a direct and material effect on its passenger facility charge (PFC) program for the year ended September 30, 2025. In our opinion, the County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its PFC program for the year ended September 30, 2025. Basis for Opinion on the Passenger Facility Charge Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Guide. Our responsibilities under those standards and the Guide are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for the PFC program. Our audit does not provide a legal determination of the County's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the County's PFC program. CERTIFIECD PUBLIC ACCOUNTANTS purrvisgray.corn ��rr�ul��u°�a� .ro7�tizuua�u� rn��{I��rGialau Vuu°a'kutlu��la°a,a,t� � a�9G«;°„ I°GaV,hc Axgxxmt0Ws 5 Honorable Board of County Commissioners Monroe County, Florida INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR THE PASSENGER FACILITY CHARGE PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE PASSENGER FACILITY CHARGE AUDIT GUIDE FOR PUBLICAGENCIES Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material non-compliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the County's compliance based on our audit. 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, Government Auditing Standards, and the Guide will always detect material non-compliance when it exists. The risk of not detecting material non-compliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Non-compliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the County's compliance with the requirements of the federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Guide, we: ■ Exercise professional judgment and maintain professional skepticism throughout the audit. ■ Identify and assess the risks of material non-compliance, 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 County's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. ■ Obtain an understanding of the County's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Guide, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, non-compliance with a type of compliance requirement of the Guide on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance,such that there is a reasonable possibility that material non-compliance with a type of compliance requirement of the Guide will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the Guide that is less severe than a material weakness in internal control over compliance,yet important enough to merit attention by those charged with governance. 6 Honorable Board of County Commissioners Monroe County, Florida INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR THE PASSENGER FACILITY CHARGE PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE PASSENGER FACILITY CHARGE AUDIT GUIDE FOR PUBLICAGENCIES Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit, we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Guide. Accordingly, this report is not suitable for any other purpose. This report is intended solely for the information and use of management of the County, the Board of County Commissioners, and the Federal Aviation Administration, and is not intended to be, and should not be, used by anyone other than these specified parties. Purvis, March 13, 2026 Sarasota, Florida 7 P U RV I s G ��R AY C'E I f 11 F I E!:) PU 1:3 111 C A('CC U IN r/k I Ocahl I "I"Anhassee � Sarasom I Orhodo purvisgray-com