PALM BEACH COUNTY, FLORIDA ANNUAL FINANCIAL AUDIT REPORT FISCAL YEAR ENDED SEPTEMBER 30, 200-part8 pptx

PALM BEACH COUNTY, FLORIDA PROPERTY APPRAISER NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 VII-14 Fiscal Year Ended Annual OPEB Cost Percentage of Annual OPEB Cost Contributed Net OPEB Obligation 9/30/2008 $29,562 0.0% $29,562 Funded Status and Funding Progress: The plan is financed on a „pay-as-you-go‟ basis. The funded status of the plan as of September 30, 2008, was as follows: Actuarial accrued liability (AAL) $312,788 Actuarial value of plan assets 0 Unfunded actuarial accrued liability (UAAL) $312,788 Funded ratio (actuarial value of plan / AAL) 0.0% Covered payroll (active plan members) $14,237,382 UAAL as a percentage of covered payroll 2.2% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long- term perspective of the calculations. Significant methods and assumptions were as follows: Actuarial valuation date 10/1/2007 Actuarial cost method Entry Age Normal Actuarial Cost Method Amortization method Level percentage of salary at beginning of fiscal year Remaining amortization period 30 years Asset valuation method not applicable Actuarial assumptions: Investment rate of return 5% Projected salary increases 4% Healthcare inflation rate 9% initial 5% ultimate This is trial version www.adultpdf.com PALM BEACH COUNTY, FLORIDA PROPERTY APPRAISER SEPTEMBER 30, 2008 VII-15 Required Supplemental Information (RSI) Other Post Employment Benefits (OPEB) Healthcare Plan for Property Appraiser of Palm Beach County Scheduling of Funding Progress Actuarial Valuation Date Actuarial Value of Assets Actuarial Accrued (AAL) Entry Age Unfunded AAL (UAAL) Funded Ratio Covered Payroll UAAL as a Percentage of Covered Payroll 10/1/2007 $0 $312,788 $312,788 0.0% $14,237,382 2.2% This is trial version www.adultpdf.com PALM BEACH COUNTY, FLORIDA PROPERTY APPRAISER SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the fiscal year ended September 30, 2008 Variance With Final Budget Original Final Actual Positive Budget Budget Amounts (Negative) Revenues: Charges for services 24,021,614$ 24,021,614$ 24,090,253$ 68,639$ Less - excess fees paid out - - (2,446,944) (2,446,944) Investment income - - 151,615 151,615 Total revenues 24,021,614 24,021,614 21,794,924 (2,226,690) Expenditures: Current: General government 23,955,280 23,955,280 21,734,541 2,220,739 Capital outlay 61,750 61,750 55,799 5,951 Debt service 4,584 4,584 4,584 - Total expenditures 24,021,614 24,021,614 21,794,924 2,226,690 Excess of revenues (under) expenditures - - - - Net change in fund balance - - - - Fund balance, October 1, 2007 - - - - Fund balance, September 30, 2008 -$ -$ -$ -$ Section 195.087, Florida Statutes, governs the preparation, adoption, and administration of the budget of the Property Appraiser. On or before a legally designated date each year, the Property Appraiser shall submit to the Florida Department of Revenue a budget for the ensuing fiscal year. A copy of such budget shall be furnished at the same time to the Board of County Commissioners. Final approval of the budget is given by the Florida Department of Revenue. The budget is adopted for the general fund on a basis consistent with GAAP. The level of budgetary control is at the fund level. VII-16 This is trial version www.adultpdf.com McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. VII-17 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Gary R. Nikolits Property Appraiser Palm Beach County, Florida We have audited the financial statements of the major fund of the Property Appraiser of Palm Beach County, Florida (the “Property Appraiser”), as of and for the year ended September 30, 2008, and have issued our report thereon dated June 15, 2009. These financial statements were prepared to comply with Section 218.39(2), Florida Statutes and Section 10.557(3), Rules of the Auditor General for Local Government Entity Audits. We conducted our audit in accordance with 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Property Appraiser's internal control over financial reporting as a basis for designing our auditing procedures 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 Property Appraiser's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser's internal control over financial reporting. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. This is trial version www.adultpdf.com VII-18 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. 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. We noted certain matters that we reported to management of the Property Appraiser’s office in a separate letter dated June 15, 2009. This report is intended solely for the information and use of the Property Appraiser, management of Palm Beach County, Florida Property Appraiser’s office, and the Florida Auditor General, and is not intended to be and should not be used by anyone other than the specified parties. West Palm Beach, Florida June 15, 2009 This is trial version www.adultpdf.com McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. VII-19 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida The Honorable Gary R. Nikolits Property Appraiser Palm Beach County, Florida We have audited the accompanying financial statements of the major fund of the Property Appraiser of Palm Beach County, Florida, (the Property Appraiser) as of and for the year ended September 30, 2008, and have issued our report thereon dated June 15, 2009, which was prepared to comply with State of Florida reporting requirements. We conducted our audit in accordance with 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. We have issued our Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters. Disclosures in that report, which is dated June 15, 2009, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors’ reports: Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial audit report. The recommendation in the preceding annual financial audit report has been addressed in Appendix A to this report. Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Property Appraiser complied with Section 218.415, Florida Statutes. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve the Property Appraiser’s financial management, accounting procedures and internal controls. There are no recommendations to improve financial management, accounting procedures, and internal controls for the current annual financial audit report. This is trial version www.adultpdf.com VII-20 Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an effect on the determination of financial statements amounts that is less than material but more than inconsequential. In connection with our audit, we did not have any such findings. Sections 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional judgment, report the following matters that are inconsequential to the determination of financial statement amounts, considering both quantitative and qualitative factors: (1) violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred and (2) control deficiencies that are not significant deficiencies, including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)6., 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. This information is disclosed in Note 1 of the Property Appraiser’s financial statements. Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America requires us to indicate that this letter is intended solely for the information and use of the Property Appraiser, management of Palm Beach County, Florida Property Appraiser’s Office and the State of Florida Office of the Auditor General, and is not intended to be and should not be used by anyone other than the specified parties. West Palm Beach, Florida June 15, 2009 This is trial version www.adultpdf.com Property Appraiser of Palm Beach County, Florida Appendix A Prior Year Recommendations to Improve Financial Management, Accounting Procedures and Internal Controls Year Ended September 30, 2008 VII-21 Observation Addressed or Observation No Longer No. Prior Year's Observations is Still Relevant Relevant ML 07-01 Review of Journal Entries X This is trial version www.adultpdf.com PAGE INTENTIONALLY LEFT BLANK VII-22 This is trial version www.adultpdf.com [...]... www.adultpdf.com Independent Auditor’s Report Honorable Ric L Bradshaw Sheriff Palm Beach County, Florida We have audited the accompanying financial statements of each major fund, and the aggregate remaining fund information of the Sheriff, Palm Beach County, Florida ( the “Sheriff”), as of and for the year ended September 30, 2008, as listed in the table of contents These financial statements are the... www.adultpdf.com VIII-14 PALM BEACH COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 During claim years 2008 and 2007, changes recorded to the claims liability for general liability were as follows: Fiscal Year Beginning of Fiscal Year Liability Current Year Claims and Changes in Estimates 2007 2008 $11,492,510 14,069,096 $6,494,703 2,935,585 Claim Payments Balance at Fiscal Year- end $(3,918,117)... Entity Audits, requires the Palm Beach County, Florida, Sheriff financial statements to only present fund financial statements Accordingly, due to the omission of government-wide financial statements and related disclosures including a management‟s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Palm Beach County, Florida, ... annual cost-of-living adjustments, and death benefits to plan members and beneficiaries These benefits are established by Florida Statutes, Chapter 121, and may only be amended by the Florida Legislature This is trial version www.adultpdf.com VIII-12 PALM BEACH COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 The Division of Retirement issues a publicly available financial report. .. to the financial statements taken as a whole This report is intended solely for the information and use of the Sheriff, management of the Sheriff’s office and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties West Palm Beach, Florida June 15, 2009 This is trial version www.adultpdf.com VIII-2 PALM BEACH COUNTY, FLORIDA. .. accompanying financial statements: Reporting Entity The Palm Beach County Sheriff (the Sheriff) is a separately elected county official established pursuant to the Constitution of the State of Florida The Sheriff‟s financial statements do not purport to reflect the financial position or the results of operations of Palm Beach County, Florida (the County) taken as a whole Section 10.556(6), Rules of the Auditor... to annual required contribution Annual OPEB cost 15,300,000 Contributions made (4,300,000) Increase in net OPEB obligation 11,000,000 Net OPEB obligation- beginning of year Net OPEB obligation- end of year $ 11,000,000 The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current fiscal year: Percentage of Fiscal Annual OPEB Net Year Annual. .. estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure This is trial version www.adultpdf.com VIII-8 PALM BEACH COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting periods Actual results could... the financial statements, the accompanying financial statements were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Government Entity Audits These financial statements are not intended to be a complete presentation of the financial position of the Sheriff as of September 30, 2008, and the changes in its financial. .. balances $ 53,823,506 $ 9,694,143 This is trial version www.adultpdf.com The notes to the financial statements are an integral part of this statement VIII-3 $ 63,517,649 PALM BEACH COUNTY, FLORIDA SHERIFF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the fiscal year ended September 30, 2008 Major Funds Special Revenue Fund General Fund Revenues: Charges for services . PALM BEACH COUNTY, FLORIDA PROPERTY APPRAISER NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 VII-14 Fiscal Year Ended Annual OPEB Cost Percentage of Annual OPEB Cost. Nikolits Property Appraiser Palm Beach County, Florida We have audited the financial statements of the major fund of the Property Appraiser of Palm Beach County, Florida (the “Property Appraiser”),. preceding annual financial audit report. The recommendation in the preceding annual financial audit report has been addressed in Appendix A to this report. Section 10.554(1)(i)2., Rules of the Auditor