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Monroe County, Florida Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2018 This page is intentionally left blank. MONROE COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 KEVIN MADOK, CPA CLERK OF THE CIRCUIT COURT & COMPTROLLER PREPARED BY: CLERK OF THE CIRCUIT COURT FINANCE DEPARTMENT PAM RADLOFF, CPA FINANCE DIRECTOR This page is intentionally left blank. MONROE COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 PAGE INTRODUCTORY SECTION Transmittal Letter of the Clerk of the Circuit Court and Comptroller A-1 Certificate of Achievement for Excellence in Financial Reporting A-8 List of Elected and Appointed Officials A-9 Organizational Chart A-10 FINANCIAL SECTION Report of Independent Auditor B-1 Management's Discussion and Analysis C-1 Basic Financial Statements: Government-Wide Financial Statements Statement of Net Position D-1 Statement of Activities D-3 Fund Financial Statements Balance Sheet - Governmental Funds E-1 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position E-3 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds E-4 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities E-6 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Major Governmental Funds: General Fund E-7 Fine and Forfeiture Special Revenue Fund E-11 HIDTA Grants Special Revenue Fund E-13 Governmental Grants Special Revenue Fund E-14 Sheriff's Grants Special Revenue Fund E-17 Statement of Net Position - Proprietary Funds E-18 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds E-22 Statement of Cash Flows - Proprietary Funds E-24 Statement of Fiduciary Net Position - Fiduciary Funds E-28 Notes to Financial Statements F-1 Required Supplementary Information G-1 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds H-1 Combining Statement of Revenues, Expenditures, and Changes in Fund H-13 Balances - Nonmajor Governmental Funds Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Special Revenue Funds and Capital Projects Funds: Affordable Housing Programs H-25 Road and Bridge H-26 Tourist Development, All Districts, Two Cent H-27 Tourist Development, Administration and Promotional, Two Cent H-28 MONROE COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 PAGE Tourist Development, District One H-29 Tourist Development, District Two H-30 Tourist Development, District Three H-31 Tourist Development, District Four H-32 Tourist Development, District Five H-33 Impact Fees - Roadways H-34 Impact Fees - Parks and Recreation H-35 Impact Fees - Libraries H-36 Impact Fees - Solid Waste H-37 Impact Fees - Police Facilities H-38 Impact Fees - Fire and EMS H-39 Impact Fees - Employee Fair Share Housing H-40 Fire and Ambulance, District One - Lower and Middle Keys H-41 Unincorporated Area Service District - Parks and Recreation H-42 Unincorporated Area Service District - Planning, Building, and Zoning H-43 Municipal Policing H-45 Duck Key Security District H-46 Local Housing Assistance H-47 Boating Improvement H-48 Miscellaneous H-49 Environmental Restoration H-51 Court Facility Fees H-52 Drug Abuse Trust H-53 Marathon Municipal Service Taxing Unit H-54 Bay Point Municipal Service Taxing Unit H-55 Big Coppitt Municipal Service Taxing Unit H-56 Key Largo Municipal Service Taxing Unit H-57 Stock Island Wastewater Municipal Service Taxing Unit H-58 Conch Key Municipal Service Taxing Unit H-59 Long Key-Layton Municipal Service Taxing Unit H-60 Duck Key Municipal Service Taxing Unit H-61 Building Fund H-62 Clerk's Revenue Note Capital Projects Fund H-63 Infrastructure Revenue Bonds Series 2007 Capital Projects Fund H-64 Big Coppitt Wastewater Project Capital Projects Fund H-65 Duck Key Wastewater Project Capital Projects Fund H-66 Long Key Wastewater Project Capital Projects Fund H-67 Land Acquisition Fund Capital Projects Fund H-68 Sheriff's Teen Court H-69 Sheriff's Federal Forfeiture H-70 Sheriff's State Forfeiture H-71 Sheriff's Contract Administrative H-72 Sheriff's Commissary H-73 Sheriff's Interagency Communications H-74 Sheriff's Trauma Star H-75 Sheriff's Radio Communications H-76 MONROE COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 PAGE Sheriff's Shared Asset Forfeiture H-77 Sheriff's E911 H-78 Clerk's Records Modernization H-79 Clerk's Court Related H-80 Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Major Governmental Funds: One Cent Infrastructure Surtax Capital Project Fund H-81 Infrastructure Revenue Bonds Series 2014 Capital Projects Fund H-82 Cudjoe Regional Wastewater Capital Project Fund H-83 All Debt Service Funds H-84 Combining Statement of Net Position - Internal Service Funds H-86 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds H-88 Combining Statement of Cash Flows - Internal Service Funds H-90 Combining Statement of Fiduciary Net Position - All Agency Funds H-94 Combining Statement of Changes in Fiduciary Net Position - All Agency Funds H-95 STATISTICAL SECTION Introduction I-1 Net Position by Component I-2 Changes in Net Position I-3 Governmental Activities Tax Revenues By Source I-6 Fund Balances of Governmental Funds I-7 Changes in Fund Balances of Governmental Funds I-8 General Governmental Tax Revenues By Source I-10 Assessed Value and Estimated Actual Value of Taxable Property I-11 Direct and Overlapping Governments I-12 Principal Property Taxpayers I-13 Property Tax Levies and Collections I-14 Ratios of Outstanding Debt by Type I-15 Ratios of General Bonded Debt Outstanding I-16 Direct and Overlapping Governmental Activities Debt I-17 Legal Debt Margin Information I-18 Pledged-Revenue Coverage - Governmental Activities I-19 Pledged Revenue Bonds and Notes - Business-Type Activities I-20 Demographic and Economic Statistics I-21 Principal Employers I-22 Full-time Equivalent County Government Employees by Function I-23 Operating Indicators by Function I-24 Capital Asset Statistics by Function I-25 MONROE COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 PAGE SINGLE AUDIT/GRANTS COMPLIANCE SCHEDULES Report of Independent Auditor on Internal Control over Financial Reporting and on J-1 Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Report of Independent Auditor on Compliance for Each Major Federal Awards J-3 Program and State Financial Assistance Project and on Internal Control Over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General Schedule of Expenditures of Federal Awards and State Financial Assistance J-5 Notes to Schedule of Expenditures of Federal Awards and State Financial J-11 Assistance Schedule of Findings and Questioned Costs - Federal Awards Programs and State J-13 Financial Assistance Projects Summary Schedule of Prior Year Audit Findings - Federal Awards Programs and State J-16 Financial Assistance Projects Independent Auditor's Management Letter K-1 Report of Independent Accountant on Compliance with Local Government Investment Policies and E911 Requirements of Sections 365.172 and 365.173, Florida Statutes K-3 OTHER INFORMATION Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill L-1 March 18, 2019 The Honorable Sylvia Murphy Mayor, Board of County Commissioners Citizens of Monroe County, Florida We are pleased to submit the Comprehensive Annual Financial Report (CAFR) for Monroe County, Florida for the fiscal year (FY) ended September 30, 2018. Monroe County’s CAFR is prepared by the Finance Department under the direction of the Clerk of the Circuit Court & Comptroller (Clerk). Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Clerk as Chief Financial Officer of Monroe County, Florida (the County). We assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. It is presented in a format designed to fairly present the financial position and results of operations of the County as measured by the financial activity. All disclosures needed to allow the reader to gain a comprehensive understanding of the County’s financial activity have been included. The County has established a comprehensive internal control framework that is designed both to protect the County’s assets from loss, theft, or misuse and to compile sufficient reliable accounting information for financial statement preparation in conformity with United States generally accepted accounting principles (GAAP) established by the Government Accounting Standards Board. Because the cost of internal controls should not outweigh their benefits, the objective is to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. In addition, the Federal Single Audit Act, the Florida Single Audit Act and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
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