PALM BEACH COUNTY, FLORIDA
TAX COLLECTOR
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 62,959,200$ 61,339,200$ 65,133,926$ 3,794,726$
Less - excess fees paid out (43,276,478) (41,356,478) (46,539,258) (5,182,780)
Investment income 1,500,000 1,200,000 1,151,068 (48,932)
Total revenues 21,182,722 21,182,722 19,745,736 (1,436,986)
Expenditures:
Current:
General government 20,852,947$ 20,944,267$ 19,602,071 1,342,196
Capital outlay 329,775 238,455 143,665 94,790
Total expenditures 21,182,722 21,182,722 19,745,736 1,436,986
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 Tax
Collector. On or before a legally designated date each year, the Tax Collector 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.
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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 Anne M. Gannon
Tax Collector
Palm Beach County, Florida

We have audited the financial statements of the major fund and the aggregate remaining fund information of the Tax
Collector of Palm Beach County, Florida (the Tax Collector), 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 Tax Collector’s internal control over financial reporting as a
basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the Tax Collector’s internal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector’s internal control over
financial reporting.
Our consideration of the internal control over financial reporting was for the limited purpose described in the
preceding paragraph and would not necessarily identify all deficiencies in the internal control over financial reporting

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 Tax Collector’s office in a separate letter dated
June 15, 2009.

The Tax Collector’s response to the finding identified in our audit and is described in the accompanying schedule of
findings and responses. We did not audit the Tax Collector’s response and, accordingly, we express no opinion on it.

This report is intended solely for the information and use of the Tax Collector, management of the Palm Beach
County, Florida Tax Collector’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
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establish an effective review procedure to ensure that all non-routine and significant transactions are properly
reported in the financial statements.

Views of responsible officials and planned corrective action
: We will review our existing procedures and make the
necessary changes, to these procedures, to ensure that all transactions are properly reported in the financial
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McGladrey & Pullen, LLP is a member firm of RSM International,
an affiliation of separate and independent legal entities.
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Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida The Honorable Anne M. Gannon
Tax Collector
Palm Beach County, Florida

We have audited the accompanying financial statements of the major fund and the aggregate remaining fund


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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 Tax Collector’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 Tax Collector, management of Palm Beach County, Florida Tax
Collector’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.

ML 08-1 – Application Access Security
Criteria
: Effective application access security relies on a security structure that includes the use of the following:
• Available access security features in the software;
• Security administration procedures developed and documented for the granting, revoking and reviewing of
data and resource access.

Condition
: There were aspects of security management that needed improvement. Specific details of these issues
are not disclosed in this report to avoid the possibility of compromising The Tax Collector’s Office (TCO)
information in accordance with Florida Statute 281.301. However, appropriate personnel have been notified
of these issues which included the following:
• Certain TCO staff had the capability to perform incompatible duties within the payroll function. We noted an
instance where employee access privileges should be made more restrictive by the TCO to enforce an
appropriate segregation of duties.

Cause
: Lack of enforcement of policies to support proper restriction of access.

Effect
:
• Unauthorized access to the application;
• Segregation of incompatible duties is fundamental to the reliability of an organization’s internal controls;
• Appropriate segregation of duties can assist in the detection of mistakes or errors and potential fraud;
• An appropriate division of roles and responsibilities prevents the possibility of a single individual subverting
a critical process.

Context
: The finding is considered systemic in nature.


time card was not approved by a supervisor, based on further discussion with management it was determined that
this deficiency was pervasive throughout the entity.

Cause
: Lack of implementation of control.

Effect
: Potential errors on employee time cards not detected could lead to incorrect payroll amounts and the over or
under recording of payroll related expenditures in addition to the providing of opportunity for employees to overstate
hours worked.

Context
: The finding is considered systemic in nature.

Recommendation
: We recommend that management enforce the policies that are in place which require that each
employee time card be approved by a department supervisor.

Management Response
: We agree with the recommendation and have taken the necessary action to ensure that
each employee’s time card is approved by a supervisor.
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Tax Collector of Palm Beach County, Florida Appendix B
Prior Year Recommendations to Improve Financial Management,
Accounting Procedures and Internal Controls

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PROPERTY APPRAISER
BALANCE SHEET - GENERAL FUND
September 30, 2008
ASSETS
Cash and cash equivalents 4,097,438$
Other assets 32,781
Total assets 4,130,219$
LIABILITIES AND FUND BALANCE
Vouchers payable and accrued liabilities 1,249,696$
Due to Board of County Commissioners 2,241,843
Due to other County agencies 301,205
Deferred revenue 337,475
Total liabilities 4,130,219
Fund balance -
Total liabilities and fund balance 4,130,219$
The notes to the financial statements are an integral part of this statement.
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PALM BEACH COUNTY, FLORIDA
PROPERTY APPRAISER
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND
For the fiscal year ended September 30, 2008
Revenues:
Charges for services 24,090,253$
Less - excess fees paid out (2,446,944)
Investment income 151,615
Total revenues 21,794,924
Expenditures: