Fiscal Year 2007MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT
COURT
Financial Statements
For the Year Ended
September 30, 2007
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Contents
Independent Auditors' Report_
BASIC FINANCIAL STATEMENTS
Page
2-3
Balance Sheet - Governmental Funds 4
Statement of Revenues, Expenditures and
Changes In Fund Balance - Governmental Funds___________________________________________________ 5
Statement of Fiduciary Assets and Liabilities - Agency Fund -------------------------------------- 6
Notes to Financial Statements 7 - 11
--------------------------------------------------------------------------------------
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures -
Budget to Actual - General Fund ............
12
Schedule of Revenues and Expenditures —
Budget to Actual — Special Revenue Court Related Fund ....................................... 13
Schedule of Revenues and Expenditures —
Budget to Actual — Special Revenue Records Modernization Fund ------------------------ 14
SUPPLEMENTARY INFORMATION
Statement of Changes in Assets and Liabilities -
AgencyFund ........................................................................................................... 15
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' 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_____________________________________________ 16 - 17
Independent Auditors' Management Letter ................................................................... 18 - 19
INDEPENDENT AUDITORS' REPORT
To the Honorable Danny L. Kolhage,
Clerk of the Circuit Court of Monroe County, Florida:
We have audited the accompanying financial statements of each major fund and the aggregate
remaining fund information of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk") as
of and for the year ended September 30, 2007, which collectively comprise the Clerk's basic
financial statements as listed in the table of contents. These financial statements are the
responsibility of the Clerk's management. Our responsibility is to express opinions on these
financial statements based on our audit.
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. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinions.
As discussed in Note 1, the accompanying financial statements were prepared for the purpose of
complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General -Local Governmental Entity Audits, and are not intended to be a complete presentation of
the financial position of Monroe County, Florida, and the results of its operations and the cash flows
of its proprietary funds in conformity with accounting principles generally accepted in the United
States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of each of the major funds and aggregate remaining fund information of
the Clerk as of September 30, 2007, and the respective changes in financial position thereof for the
year then ended, in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued a report dated February
8, 2008 on our consideration of the Clerk's internal control over financial reporting and our tests of
its compliance with certain provisions of laws, regulations, contracts, and 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 internal control over financial reporting or on compliance. That report is an integral part of an
K
audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
The budgetary comparison schedules on pages 12-14 are not a required part of the basic financial
statements but are supplementary information required by the Governmental Accounting Standards
Board. We have applied certain limited procedures, which consisted primarily of inquiries of
management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and we express no opinion
on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Clerk's basic financial statements. The accompanying statement of
changes in assets and liabilities - agency fund is presented for purposes of additional analysis and
is not a required part of the basic financial statements. This statement has been subjected to the
auditing procedures applied by us in the audit of the basic financial statements and, in our opinion,
is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these specified
parties.
CHERRY, BEKAERT & HOLLAND, L.L.P.
Orlando, Florida
February 8, 2008
K3
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Balance Sheet
Governmental Funds
September 30, 2007
Major Funds
Court
Records
General
Related
Modernization
Fund
Fund
Fund
Totals
ASSETS
Assets
Cash and cash equivalents
$ 1,586,838
$ 1,373,091
$ 1,081,769
$ 4,041,698
Due from Board of County Commissioners
58,242
1,965
-
60,207
Due from other governments
-
15,373
-
15,373
Total assets
$ 1,645,080
$ 1,390,429
$ 1,081,769
$ 4,117,278
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and accrued liabilities
$ 118,408 $
117,363 $
116,377
$ 352,148
Due to Board of County Commissioners
1,491,925
470,452
-
1,962,377
Due to Florida Department of Revenue
-
675,801
675,801
Deferred revenue
-
126,813
126,813
Deposits
34,747
-
-
34,747
Total liabilities
1,645,080
1,390,429
116,377
3,151,886
Fund balances
-
-
965,392
965,392
Total liabilities and fund balances
$ 1,645,080 $
1,390,429 $
1,081,769
$ 4,117,278
The notes to the financial statements
are an integral part of this statement. 4
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Funds
Year Ended September 30, 2007
Major Funds
Court
Records
General
Related
Modernization
Fund
Fund
Fund
Totals
Revenues
Intergovernmental
$ -
$ 556,090
$ -
$ 556,090
Charges for services
Board of County Commissioners
2,956,539
963,302
-
3,919,841
Others
1,309,218
2,057,568
421,229
3,788,015
Fines and forfeitures
-
1,526,734
-
1,526,734
Interest income
328,012
1,533
65,538
395,083
Miscellaneous
3,399
1,486
-
4,885
Total revenues
4,597,168
5,106,713
486,767
10,190,648
Expenditures
Current
General government
Salaries and benefits
2,510,557
-
-
2,510,557
Operating expenditures
571,098
-
-
571,098
Court Related
Salaries and benefits
-
3,754,421
162,878
3,917,299
Operating expenditures
-
201,940
488,364
690,304
Capital outlay
23,737
4,406
9,735
37,878
Total expenditures
3,105,392
3,960,767
660,977
7,727,136
Excess of revenues over (under) expenditures
1,491,776
1,145,946
(174,210)
2,463,512
Other financing uses
Principal
Interest
Transfer to Board of County Commissioners
Transfer to Florida Department of Revenue
Total other financing uses
Excess of expenditures and other financing
uses over revenues and other uses
Fund balances, beginning of year
Fund balances, end of year
- - (108,901) (108,901)
- - (2,711) (2,711)
(1,491,776) (470,145) - (1,961,921)
- (675,801) - (675,801)
(1,491,776) (1,145,946) (111,612) (2,749,334)
- - (285,822) (285,822)
- - 1,251,214 1,251,214
$ 965,392 $ 965,392
The notes to the financial statements
are an integral part of this statement.
5
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Statement of Fiduciary Assets and Liabilities
Agency Fund
September 30, 2007
Assets
Cash and cash equivalents
Due from others
Total assets
Liabilities
Due to others
Due to Board of County Commissioners
Due to other governmental agencies
Total liabilities
The notes to the financial statements
are an integral part of this statement. 6
$ 3,779,007
16,712
$ 3,795,719
$ 2,685,031
114,820
995,868
$ 3,795,719
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Notes to Financial Statements
Year Ended September 30, 2007
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity - The Monroe County, Florida Clerk of the Circuit Court (the "Clerk") is a
separately elected county official established pursuant to the Constitution of the State of Florida.
The Clerk's financial statements do not purport to reflect the financial position or the results of
operations of Monroe County, Florida (the "County") taken as a whole.
Entity status for financial reporting purposes is governed by Statement No. 14 and No. 39 of the
Governmental Accounting Standards Board (GASB). Although the Clerk's Office is operationally
autonomous, it does not hold sufficient corporate powers of its own to be considered a legally
separate entity for financial reporting purposes. Therefore, the Clerk is reported as a part of the
primary government of the County.
Description of Funds - The accounting records are organized for reporting purposes on the basis
of three governmental funds and a fiduciary fund.
General Fund — The General Fund is a governmental fund used to account for all revenues and
expenditures applicable to the general operations of the Clerk that are not required legally or by
accounting principles generally accepted in the United States of America to be accounted for in
another fund.
Court Related Fund — A special revenue fund is used to account for proceeds of specific
revenue sources that are legally restricted or committed to expenditures for specified purposes.
The Court Related Fund is a special revenue fund used to account for revenues and
expenditures of court functions. Any excess fees over actual expenditures is returned to either
the Florida Department of Revenue by January 1 for the preceding county fiscal year or the
Monroe County Board of County Commissioners (the "Board"), depending on where the funds
originated.
Records Modernization Fund — The Records Modernization Fund is a special revenue fund
used to account for recording fees for records modernization as established pursuant to an act
of the 1987 Florida Legislature. The proceeds are to be used exclusively for equipment,
personnel training, and technical assistance in modernizing the official records system and to
pay for equipment and start up costs necessitated by a statewide recording system.
Fiduciary Fund — The Fiduciary fund of the Clerk is an Agency Fund, which is used to account
for assets held by the Clerk as agent.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation - The
Clerk's financial statements are prepared for the purpose of complying with Section 218.39(2),
Florida Statutes, and Chapter 10.550, Rules of the Auditor General -Local Governmental Entity
Audits, which require the Clerk to only present fund financial statements.
FI
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Notes to Financial Statements
Year Ended September 30, 2007
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The General Fund and the Special Revenue Funds are governmental funds which use the current
financial resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized when measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Clerk considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a
liability is incurred, as under accrual accounting. However, expenditures related to compensated
absences and claims and judgments are recorded only when payment is due.
The Clerk reports the General Fund, Court Related Fund and the Records Modernization Fund as
major governmental funds and the Agency Fund as a fiduciary fund type. The Agency Fund is
custodial in nature and does not involve measurement of results of operations.
The Clerk's operations are segregated between court related and non -court related activities as
defined by Article V. Any excess of court related revenue over court related expenditures is
reflected as a liability to either the Florida Department of Revenue or the Board, depending on the
source of the original funding. Any excess of non -court related revenue over non court -related
expenditures is reflected as a liability to the Board.
Budgetary Requirements — Expenditures are controlled by appropriations in accordance with the
budget requirements set forth in the Florida Statutes. The budget is prepared on a basis consistent
with accounting principles generally accepted in the United States of America.
Cash and Cash Equivalents — The Clerk's cash and cash equivalents consist of demand deposits
and highly liquid investments with maturities of 90 days or less when purchased. The Clerk's
investments are held in the State Board of Administration Local Surplus Investment Pool Trust Fund
("SBA"), a 2a7-like investment pool stated at share price, which is substantially the same as fair
value.
Capital Assets — Tangible personal property used by the Clerk's operations are recorded in
governmental fund types as expenditures at the time assets are received and a liability is incurred.
Purchased assets are capitalized at historical cost in the government -wide financial statements of
the County. In addition, the County provides administrative office space and certain other
expenditures used by the Clerk at no charge.
Compensated Absences — The Clerk permits employees to accumulate earned but unused
vacation and sick pay benefits. Related long-term obligations, amounting to $582,455 at September
30, 2007, are included in the government -wide financial statements of the County.
F-P
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Notes to Financial Statements
Year Ended September 30, 2007
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Deferred Revenue — The Clerk reports as deferred revenue bond forfeitures that have not yet been
recognized as revenue in accordance with Section 903.28, Florida Statutes. This Section requires
the recognition of revenue over a two-year period. Amounts are reduced by any reinstatement of
bond amounts by court order.
Use of Estimates — The preparation of financial statements requires management to make use of
estimates that affect reported amounts. Actual results could differ from estimates.
NOTE 2 — DEPOSITS AND INVESTMENTS
As of September 30, 2007, the Clerk has the following deposits and investments:
Demand Deposits $ 6,233,320
Local Government Surplus Trust Fund 1,587,385
Total cash and cash equivalents 7.820.705
Demand and time deposits are fully insured by the Federal Deposit Insurance Corporation or are
covered by the State of Florida collateral pool, a multiple institution pool with the ability to assess its
members for collateral if a member institution fails.
Florida Statutes authorize investments in certificates of deposit, savings accounts, the Local
Government Surplus Funds Trust Fund administered by the Florida State Board of Administration,
money market funds, direct obligations of the U.S. Treasury, and federal agencies and
instrumentalities and Intergovernmental Investment Pools that are authorized pursuant to the
Florida Interlocal Cooperation Act, as provided in Section 163.01, Florida Statutes. The Local
Government Surplus Funds Trust Fund is not rated as to credit quality risks. The Local Government
Surplus Funds Trust Fund is the only investment used by the Clerk this year.
NOTE 3 — RETIREMENT SYSTEM
Plan Description — The Clerk's employees participate in the Florida Retirement System ("FRS"),
administered by the Florida Department of Administration. Employees elect to participate in either
the defined benefit plan ("Pension Plan"), a cost sharing, multiple -employer, defined benefit
retirement plan, or the defined contribution plan (Investment Plan) under the FRS. 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 Statutes, and
Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of
the Florida Legislature.
NOTE 3 — RETIREMENT SYSTEM (continued)
E
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Notes to Financial Statements
Year Ended September 30, 2007
Benefits under the Pension Plan are computed on the basis of age, average final compensation,
and service credit. Regular class employees who retire at or after age 62 with 6 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 for each year of credited service. Vested
employees with less than 30 years of service may retire before age 62 and receive reduced
retirement benefits. Special risk class employees (sworn law enforcement officers, firefighters, and
correctional officers) who retire at or after age 55 with 6 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 for each year of credited service. Senior Management
Service class employees who retire at or after age 62 with at least 6 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 for each year of credited service. Elected Officers' class
employees who retire at or after age 62 with at least 6 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 for each year of credited
service. A post -employment health insurance subsidy is also provided to eligible retired employees
through the FRS in accordance with Florida Statutes.
In addition to the above benefits, the FRS administers a Deferred Retirement Option Program
("DROP"). This program allows eligible employees to defer receipt of monthly retirement benefit
payments while continuing employment with a FRS employer for a period not to exceed 60 months
after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue
interest.
For employees electing to participate in the Investment Plan rather than the Pension Plan, vesting
occurs at one year of service. These participants receive a contribution of self -direction in an
investment product with a third party administrator selected by the State Board of Administration.
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 accessing their internet site at
www.frs.state.fl.us.
Funding Policy - The FRS is noncontributory for members. Governmental employers are required
to make contributions to the FRS based on statewide contribution rates. The contribution rates by
job class at September 30, 2007 were as follows: regular, 9.85%; special risk, 20.92%; special risk
administrative support, 12.55%; county elected officers, 16.53%; senior management, 13.12%; and
DROP participants, 10.91 %. During the fiscal year ended September 30, 2007, the Clerk
contributed to the Plan an amount equal to 10.26% of covered payroll. Clerk contributions to the
FRS for the fiscal years ended September 30, 2005 through 2007 were $326,112, $396,086, and
$473,712 respectively, which were equal to the required contributions for each fiscal year. The
Clerk has historically contributed amounts equal to required contributions and, therefore, does not
have a pension asset or liability as determined in accordance with GASB Statement No. 27.
NOTE 4 — RISK MANAGEMENT
10
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Notes to Financial Statements
Year Ended September 30, 2007
The Clerk 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 Clerk participates in
the coverage provided by the Board of County Commissioners of Monroe County Workers'
Compensation, Group Insurance, and Risk Management internal service funds. Under these
programs, the Worker's Compensation Fund provides $1,000,000 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 $100,000 self -insured retention, and building property damage is
covered for the actual value of the building with a deductible between $100,000 and $250,000.
Deductibles for windstorm and flood vary by location. Monroe 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
Clerk makes payments to the Worker's Compensation, Group Insurance and Risk Management
Funds based on estimates of the amounts needed to pay prior and current year claims.
NOTE 5 — LEASE COMMITMENTS
The Clerk leases various office equipment under cancelable arrangements accounted for as
operating leases. Total lease expense was $48,655 for the year ended September 30, 2007.
NOTE 6 — LITIGATION
The Clerk is a party from time to time in various lawsuits and other claims incidental to the ordinary
course of its operation, some of which are covered by the County's self-insurance program. While
the results of litigation cannot be predicted with certainty, management believes the final outcome
of such litigation will not have a material adverse effect on the Clerk's financial position.
NOTE 7 — SUBSEQUENT EVENT
On November 29, 2007, the Management of the Local Government Surplus Trust Fund (the "Fund")
implemented a temporary freeze on its assets due to an unprecedented amount of withdrawals from
the Fund coupled with the absence of market liquidity for certain securities within it. The Clerk's
investment cash was withdrawn from the Fund prior to this date and invested in cash equivalents.
The Fund did not distribute any November 2007 interest income, estimated to be $6,000.
11
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Schedule of Revenues and Expenditures - Budget to Actual
General Fund
Year Ended September 30, 2007
Revenues
Charges for services
Board of County Commissioners
Others
Interest income
Miscellaneous
Total revenues
Expenditures
Current
General government
Clerk recording
Clerk information systems
Clerk finance
Internal audit
Tourist tax audit
Non -court administration
Non -court records management
Total expenditures
Excess of revenues over expenditures
Other financing uses
Contingency
Transfer to Board of County Commissioners
Total other financing uses
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
General Fund
Variance
Original Final Positive
Budget Budget Actual (Negative)
$ 2,947,930 $ 2,947,930 $ 2,956,539 $ 8,609
1,000,000 1,000,000 1,309,218 309,218
- - 328,012 328,012
3,947,930 3,947,930 4,597,168 649,238
630,406
630,406
531,798
98,608
690,125
671,725
485,511
186,214
1,562,808
1,562,808
1,481,502
81,306
225,312
243,712
239,137
4,575
188,394
188,394
142,544
45,850
126,564
126,564
108,449
18,115
136,642
136,642
116,451
20,191
3,560,251
3,560,251
3,105,392
454,859
387,679
387,679
1,491,776
1,104,097
(387,679)
(387,679)
-
387,679
(1,491,776)
(1,491,776)
(387,679)
(387,679)
(1,491,776)
(1,104,097)
1`
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Schedule of Revenues and Expenditures - Budget to Actual
Special Revenue Court Related Fund
Year Ended September 30, 2007
Revenues
Intergovernmental
Charges for services
Board of County Commissioners
Others
Fines and forfeitures
Interest income
Miscellaneous
Total revenues
Expenditures
Current
Court Related
Clerk administration
Clerk records management
Clerk jury management
Clerk circuit court criminal
Clerk circuit court civil
Clerk circuit court family
Clerk circuit court juvenile
Clerk circuit court probate
Clerk county court criminal
Clerk county court civil
Clerk county court traffic
Total expenditures
Excess of revenues over expenditures
Other financing uses
Contingency
Transfer to Board of County Commissioners
Transfer to Florida Department of Revenue
Total other financing uses
Net change in fund balance
Fund balance, beginning ofyear
Fund balance, end ofyear
Special Revenue
Court Related Fund
Variance
Original
Final
Positive
Budget
Budget
Actual
(Negative)
$ 556,198
$ 556,198
$ 556,090
$ (108)
1,001,608
1,001,608
963,302
(38,306)
1,810,140
1,810,140
2,057,568
247,428
1,099,860
1,099,860
1,526,734
426,874
-
-
1,533
1,533
-
1,486
1,486
4,467,806
4,467,806
5,106,713
638,907
345,236
345,236
303,210
42,026
372,728
372,728
324,788
47,940
115,504
115,504
104,543
10,961
850,122
836,022
803,464
32,558
439,984
409,434
354,715
54,719
136,203
136,203
128,895
7,308
168,232
168,232
151,334
16,898
92,924
104,062
99,928
4,134
623,638
674,188
664,546
9,642
260,640
243,602
231,847
11,755
894,508
894,508
793,497
101,011
4,299,719
4,299,719
3,960,767
338,952
168,087
168,087
1,145,946
977,859
(168,087)
(168,087)
-
168,087
(470,145)
(470,145)
(675,801)
(675,801)
(168,087)
(168,087)
(1,145,946)
(977,859)
13
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Schedule of Revenues and Expenditures - Budget to Actual
Special Revenue Records Modernization Fund
Year Ended September 30, 2007
Special Revenue
Records Modernization Fund
Variance
Original
Final
Positive
Budget
Budget
Actual
(Negative)
Revenues
Charges for services
Others
$ 440,000
$ 440,000
$ 421,229
$ (18,771)
Interest Income
40,000
40,000
65,538
25,538
Total revenues
480,000
480,000
486,767
6,767
Expenditures
Current
Court Related
Modernization trust
1,272,200
1,272,200
660,977
611,223
Total expenditures
1,272,200
1,272,200
660,977
611,223
Excess of revenues over (under) expenditures
(792,200)
(792,200)
(174,210)
617,990
Other financing uses
Contingency
(153,800)
(153,800)
153,800
Principal
(108,902)
(108,902)
(108,901)
1
Interest
(3,098)
(3,098)
(2,711)
387
Total other financing uses
(265,800)
(265,800)
(111,612)
154,188
Net change in fund balance
(1,058,000)
(1,058,000)
(285,822)
772,178
Fund balance, beginning of year
1,058,000
1,058,000
1,251,214
193,214
Fund balance, end of year
$ -
$ -
$ 965,392
$ 965,392
14
SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Statement of Changes in Assets and Liabilities
Agency Fund
Year Ended September 30, 2007
Balance
Balance
October 1,
September 30,
2006
Additions
Deductions
2007
Assets
Cash and cash equivalents
$
3,789,352
$
46,025,199
$
46,035,544
$ 3,779,007
Due from others
6,327
53,613
43,228
16,712
Total assets
$
3,795,679
$
46,078,812
$
46,078,772
$ 3,795,719
Liabilities
Due to others
$
2,301,091
$
4,862,053
$
4,478,113
$ 2,685,031
Due to Board of County Commissioners
129,185
1,516,847
1,531,212
114,820
Due to other governmental agencies
1,365,403
39,699,912
40,069,447
995,868
Total liabilities
$
3,795,679
$
46,078,812
$
46,078,772
$ 3,795,719
15
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
INDEPENDENT AUDITORS' 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
To the Honorable Danny L. Kolhage,
Clerk of the Circuit Court of Monroe County, Florida:
We have audited the financial statements of each major fund and the aggregate remaining fund
information of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk") as of and for the
year ended September 30, 2007, which collectively comprise the Clerk's basic financial statements,
and have issued our report thereon dated February 8, 2008 for the purpose of compliance with
Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General -Local
Governmental 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 Clerk'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 Clerk's internal control over financial reporting. Accordingly, we do not express an opinion on
the effectiveness of the Clerk'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 Clerk'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 Clerk's financial statements
that is more than inconsequential will not be prevented or detected by the Clerk'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 Clerk's internal control.
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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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk'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 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.
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these specified
parties.
CHERRY, BEKAERT & HOLLAND, L.L.P.
Orlando, Florida
February 8, 2008
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INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Danny L. Kolhage
Clerk of the Circuit Court Monroe County, Florida:
We have audited the financial statements of each major fund and the aggregate remaining fund
information of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk"), as of and for
the year ended September 30, 2007, which collectively comprise the Clerk's basic financial
statements, and have issued our report thereon dated February 8, 2008 for the purpose of
compliance with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General -Local Governmental 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. We have issued
our Independent Auditors' 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, dated February 8, 2008, and it should be
considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General. Those rules (Section 10.554(1)(i)l) require that we address in the management letter,
if not already addressed in the auditors' report on compliance and internal controls, whether or
not corrective actions have been taken to address significant findings and recommendations
made in the preceding annual financial audit report. There were no recommendations made in
the preceding year's annual financial audit report.
The Rules of the Auditor General (Section 10.554(1)(i)2) state that a management letter shall
have a statement as to whether or not the Clerk complied with Section 218.415, Florida
Statutes, regarding the investment of public funds. In connection with our audit of the financial
statements of the Clerk, the results of our tests did not indicate that the Clerk was in
noncompliance with Section 218.415 regarding the investment of public funds.
The Rules of the Auditor General (Section 10.554(1)(i)3) require disclosure in the management
letter of any recommendations to improve the Clerk's financial management, accounting
procedures, and internal controls. There were no recommendations in connection with the fiscal
2007 financial statement audit.
The Rules of the Auditor General (Section 10.554(1)(i)4) require disclosure in the management
letter of any violations of provisions of contracts and grant agreements or abuse that have an
effect on the financial statements that is less than material but more than inconsequential.
There were no such matters noted.
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The Rules of the Auditor General (Section 10.554(1)(i)5) allow for the following matters that are
inconsequential to the financial statements, considering both quantitative and qualitative factors,
to be reported based on professional judgment: a. immaterial violations of laws, rules,
regulations and contractual provisions or abuse; b. immaterial improper expenditures or illegal
acts; and c. control deficiencies that are not significant deficiencies. There are no such matters
reported.
The Rules of the Auditor General (Section 10.554(1)(i)6) require 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 Clerk is a separately elected county official established pursuant to the Constitution of the
State of Florida. There are no component units related to the Clerk.
The Rules of the Auditor General (Section 10.554(1)(i)8) require a statement as to whether or
not the Clerk complied with Section 28.35, Florida Statutes, regarding the budget and
performance standards certified by the Florida Clerk of Courts Operations Corporation. In
connection with our audit, we determined that the Clerk complied with the budget and
performance standards pursuant to Section 28.35, Florida Statutes.
This report is intended solely for the information and use of management, the State of Florida
Office of the Auditor General, and applicable state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
CHERRY, BEKAERT & HOLLAND, L.L.P.
Orlando, Florida
February 8, 2008
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