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Fiscal Year 2016MONROE COUNTY., FLORIDA SHERIFF FINANCIAL STATEMENTS As of and for the Year Ended September 30, 2016 And Reports of Independent Auditor Cherry Bekaert MONROE COUNTY, FLORIDA SHERIFF TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR 1-2 ------------------------------------------------------------------------------------------ FINANCIAL STATEMENTS Balance Sheet - Governmental Funds 3 ------------------------------------------------------------------------------------------------------ Statement of Revenues, Expenditures and Changes In Fund Balances - Governmental Funds 4 ----------------------------------------------------------------------------------------------- Statement of Fiduciary Assets and Liabilities - Agency Funds__________________________________________________________________ 5 Notes to Financial Statements 6-14 ------------------------------------------------------------------------------------------------------------ REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund ------------------------------------------------------------------------------------- 15 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — Major Special Revenue Funds _______________________________________________________16-22 OTHER SUPPLEMENTARY INFORMATION Combining Statement of General, Trauma Star and Radio Communications Funds by Service Area ............................................................................................. 23 Non -Major Special Revenue Funds Description_______ _______ ________ ________ ________ ________ _____________ 24 Combining Balance Sheet — Non -Major Governmental Funds - Special Revenue Funds---------------------------------------------------------------------------------------------------------------25-27 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Non -Major Governmental Funds — Special Revenue Funds ----------------------------------- 28-30 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Non -Major Special Revenue Funds _______________________________________________31-36 Agency Funds Description------------------------------------------------------------------------------------------------------------------ 37 Combining Statement of Changes in Fiduciary Assets and Liabilities - AIIAgency Funds----------------------------------------------------------------------------------------------------------------------------- 38 SUPPLEMENTARY REPORTS Report of Independent Auditor 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 ---------------------------------------------------------------------------------------------------- 39-40 Independent Auditor's Management Letter ---------------------------------------------------------------------------------------- 41-42 Report of Independent Accountant on Compliance with Local Government Investment Policies 43 -------------------------------------------------------------------------------------------------------- Cherry aert"' Report of Independent Auditor To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Sheriff (the "Sheriff') as of and for the year ended September 30, 2016, and the related notes to the financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Sheriffs preparation and fair presentation of the financial statements 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 Sheriffs internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Sheriff as of September 30, 2016, 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. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each fund of Monroe County, Florida that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2016, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Required Supplementary Information as listed in the table of contents be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriffs basic financial statements. The other supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. The other supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with accounting standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 7, 2017 on our consideration of the Sheriffs internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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 audit performed in accordance with Government Auditing Standards in considering the Sheriffs internal control over financial reporting and compliance. Orlando, Florida February 7, 2017 FINANCIAL STATEMENTS MONROE COUNTY, FLORIDA SHERIFF BALANCE SHEET - GOVERNMENTAL FUNDS SEPTEMBER 30, 2016 Major Funds Non -Major Funds Shared Radio HIDTA Asset Federal Other General Trauma Star Communications Grants Grants Forfeiture Forfeiture E-911 Governmental Total ASSETS Cash and cash equivalents $ 4,947,835 $ 133,081 $ 60,510 $ 678,921 $ - $ 1,024,605 $ 4,297,752 $ 1,974,115 $ 1,064,447 $ 14,181,266 Investments 156,524 - - - - 4,045,596 - - - 4,202,120 Due from Board of County Commissioners 22,934 - - - 8,179 - - 41,336 22,989 95,438 Due from other funds 230,529 - - - - - - - 1,191,069 1,421,598 Due from other governmental units 17,467 - - 2,434,522 46,768 - - - 113,073 2,611,830 Due from others 35,875 - - 13,461 - 938 - - 51,596 101,870 Interest receivable 21,648 21,648 Total assets $ 5,411,164 $ 133,081 $ 60,510 $ 3,126,904 $ 54,947 $ 5,092,787 $ 4,297,752 $ 2,015,451 $ 2,443,174 $ 22,635,770 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 1,660,702 $ - $ - $ 1,037,903 $ - $ 26,364 $ - $ - $ 39,575 $ 2,764,544 Accrued wages and benefits payable 1,199,786 - - 135,304 - - - - - 1,335,090 Due to Board of County Commissioners 1,688,681 133,081 60,510 88,970 - - - - 60,133 2,031,375 Due to other govemmental units 303,944 - - 1,179,872 - - - - 4,433 1,488,249 Due to other funds 557,579 - - 684,855 54,947 - - 48,093 76,124 1,421,598 Due to others 222 - - - - - - - - 222 Unearned revenues 250 - ok At - - - - - - 250 Total liabilities 5,411,164 133,081 60,510 3,126,904 54,947 26,364 - 48,093 180,265 9,041,328 Deferred Inflows of Resources: Unavailable revenues - - - - - - - - 8,264 8,264 Fund balances, restricted - Law enforcement programs - - - - - 5,066,423 4,297,752 - - 9,364,175 -Teen cou rt program - - - - - - - - 54,258 54,258 - Interagency communication program - - - - - - - - 417,332 417,332 -E-911 programs - - - - - - - 1,967,358 - 1,967,358 - Inmate welfare program - - - - - - - - 574,504 574,504 -Farm program - - - - - - - - 49,405 49,405 Fund balances, committed -Contract administration 11159,146 1,159,146 Total fund balances 5,066,423 4,297,752 1,967,358 2,254,645 13,586,178 Total liabilities, deferred inflows of resources and fund balances $ 5,411,164 $ 133,081 $ 60,510 $ 3,126,904 $ 54,947 $ 5,092,787 $ 4,297,752 $ 2,015,451 $ 2,443,174 $ 22,635,770 The accompanying notes to the financial statements are an integral part of this statement. 3 MONROE COUNTY, FLORIDA SHERIFF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2016 Non -Major Major Funds Funds Shared Trauma Radio HIDTA Asset Federal Other Total General Star Communications Grants Grants Forfeiture Forfeiture E-911 Governmental Governmental Revenues: Intergovernmental - BOCC $ 45,475,010 $ 4,410,333 $ 475,417 $ - $ 28,709 $ - $ - $ 454,775 $ 185,465 $ 51,029,709 Intergovernmental - other government units - - - 19,844,335 315,062 - 149,903 - 294,385 20,603,685 Charges for services - - 26,699 - - - - 4,051,108 4,077,807 Fines and forfeitures - - - - - - - - 48,372 48,372 Investment income 49,278 - - - - 126,835 22,709 10,763 8,127 217,712 Miscellaneous income 336,148 12,221 348,369 Total revenues 45,860,436 4,410,333 502,116 19,844,335 343,771 126,835 172,612 465,538 4,599,678 76,325,654 Expenditures: Current: Personnel services 32,816,515 615,703 159,601 4,018,454 390,123 131 34,345 442,486 3,578,546 42,055,904 Operating expenses 9,383,529 1,141,374 237,726 15,030,555 40,912 356 5,135 115,339 718,908 26,673,834 Capital outlay 1,684,184 2,520,175 44,279 795,326 - - 5,350 - 35,844 5,085,158 Aid to other governments/non-profits 133,533 382,869 47,750 564,152 Total expenditures 43,884,228 4,277,252 441,606 19,844,335 431,035 134,020 427,699 557,825 4,381,048 74,379,048 Excess of revenues over (under) expenditures 1,976,208 133,081 60,510 (87,264) (7,185) (255,087) (92,287) 218,630 1,946,606 Other financing sources (uses): Insurance proceeds 45,088 - - - - - - - - 45,088 Transfers (to)/from other funds (96,863) - - - 87,264 - - - 9,598 (1) Transfers (to)/from other governments (297,211) - - - - - - - (36,248) (333,459) Transfer (to)/from Board of County Commissioners (1,627,222) (133,081) (60,510) (20,722) (1,841,535) Total other financing sources (uses) over expenditures (1,976,208) (133,081) (60,510) 87,264 (47,372) (2,129,907) Excess of revenues over expenditures and other financing sources - - - - - (7,185) (255,087) (92,287) 171,258 (183,301) Fund balances, beginning of year 5,073,608 4,552,839 2,059,645 2,083,387 13,769,479 Fund balances, end of year $ - $ - $ - $ - $ - $ 5,066,423 $ 4,297,752 $ 1,967,358 $ 2,254,645 $ 13,586,178 The accompanying notes to the financial statements are an integral part of this statement. 4 MONROE COUNTY, FLORIDA SHERIFF STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCY FUNDS SEPTEMBER 30, 2016 ASSETS Cash and cash equivalents Due from others Total assets LIABILITIES Accounts payable Due to Board of County Commissioners Due to individuals Total liabilities Civil Total Process Bonds Inmate Agency $ 5,055 $ 584,029 $ 38,167 $ 627,251 - - 142 142 $ 5,055 $ 584,029 $ 38,309 $ 627,393 $ - $ - $ 15,629 $ 15,629 5,055 - - 5,055 - 584,029 22,680 606,709 $ 5,055 $ 584,029 $ 38,309 $ 627,393 The accompanying notes to the financial statements are an integral part of this statement. 5 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 Note 1—Summary of significant accounting policies Reporting entity - The Monroe County, Florida Sheriff (the "Sheriff') is a separately elected county official established pursuant to the Constitution of the State of Florida. The Sheriffs 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. The financial statements of the Sheriff have been prepared in accordance with accounting principles and reporting guidelines established by the Governmental Accounting Standards Board ("GASB"). Entity status for financial reporting purposes is governed by Statement No. 14, as amended. Although the Sheriffs Office is operationally autonomous from the County, it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, under GASB guidelines, the Sheriff is reported as a part of the primary government of Monroe County, Florida. Measurement focus, basis of accounting, and financial statement presentation - The Sheriffs 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 (the "Rules"), which requires the Sheriff to only present fund financial statements. The General Fund and Special Revenue Funds are governmental funds that 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 government 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, debt service expenditures as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. Description of funds - The Sheriff reports the General Fund and Special Revenue Funds as governmental funds and Agency Funds as a fiduciary fund type. The General Fund is used to account for all revenues and expenditures applicable to the general operations of the Sheriff. The Special Revenue Funds account for the proceeds and uses of specific revenue sources that are legally restricted or committed to expenditures for a specific purpose. Agency Funds are used to account for assets held by the Sheriff as agent. Agency funds are custodial in nature and do not involve measurement of results of operations. The Sheriff reports the General Fund and the following seven Special Revenue Funds as major funds: Trauma Star, Radio Communications, HIDTA Grants, Grants, Federal Forfeiture, Shared Asset Forfeiture and E-911. The Trauma Star fund accounts for the revenues and expenditures related to the function of air and ambulance transports. The Radio Communications fund accounts for the revenues and expenditures related to radio communication functions county -wide to include the majority of federal, state and local entities. The HIDTA Grants Fund accounts for the revenues and expenditures related to the ONDCP grants. The Grants Fund accounts for receipts and disbursements related to other various local, state and federal grants. The Federal Forfeiture Fund accounts for revenues from the U.S. Departments of Justice and Treasury. Expenditures are made in accordance with the guidelines issued by these agencies. The Shared Asset Forfeiture Fund accumulates stipulated transfers from the Federal Forfeiture Fund and its investment income is used to fund awards to non-profit organizations, as determined by an advisory board. The E-911 Fund accounts for fees levied on each telephone access line in Monroe County for the enhancement of the 911 emergency telephone systems. MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 Note 1—Summary of significant accounting policies (continued) Transfers - The Sheriff transfers funds to administer certain Special Revenue Fund programs. In addition, the extent to which General Fund, Trauma Star, Radio Communications and the State Forfeiture Fund revenues exceed expenditures is reflected as transfers out and as liabilities to the Board of County Commissioners. Fund balance presentation - In accordance with GASB Statement No. 54, the fund balances of the governmental funds are classified as restricted or committed. This classification includes amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors or the laws or regulations of other governments. Budgetary requirements - General fund expenditures are controlled by appropriations in accordance with the budget requirements set forth in the Florida Statutes. Budgets are administered for all funds and are prepared on a basis consistent with accounting principles generally accepted in the United States of America. Cash and cash equivalents and investments - Highly liquid investments with maturities of 90 days or less when purchased are considered cash equivalents. Included are investments in the State Board of Administration Local Surplus Funds Investment Pool Trust Fund ("SBA"), which consists of the Florida PRIME investment pool, and municipal bonds. Florida PRIME is a 2a7-like fund stated at amortized cost, which is substantially the same as fair value, and municipal bonds are stated at fair value based on level 2 of the fair value hierarchy, using quoted prices for similar assets in active markets or identical or similar assets in inactive markets. Receivables - All receivables are shown net of an allowance for uncollectibles. Historical collection experience is used to estimate the accounts receivable allowance. The complete balance in the Inmate Fund is deemed uncollectible in the amount of $345,132 at September 30, 2016. Capital assets - Capital assets are recorded as expenditures in the General Fund or the Special Revenue Funds at the time of purchase and are capitalized at historical cost in the government -wide financial statements of the County. Gifts or contributions and seized property are recorded first in the Sheriffs financial statements as well as in the government -wide financial statements at fair market value at the time received. In addition, the Board of County Commissioners provides at no cost the office space and certain other expenditure items used in the Sheriffs operations. It is the policy of the Sheriff to capitalize all assets costing more than $1,000 with an estimated useful life of two or more years. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives Years Buildings and infrastructure 10-50 Machinery and equipment 5-10 Compensated absences - The Sheriff permits employees to accumulate earned but unused vacation and sick pay benefits. The Sheriff is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation is accrued in the government -wide financial statements of the County. 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. MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 Note 2—Deposits and investments Cash and cash equivalents and investments at September 30, 2016 consist of the following: Type Credit Quality Rating Demand deposits N/A SBA Municipal Bonds Fair Value $ 14,808,517 Unrated 156,524 4,045,596 $ 19,010,637 Deposits - Cash and cash equivalents consist of demand deposits insured by the Federal Deposit Insurance Corporation (FDIC) or covered by the State of Florida collateral pool, a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. Investments - Florida Statutes and the Sheriffs investment policy authorize investments in certificates of deposit, savings accounts, repurchase agreements, 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, federal agencies and instrumentalities, rated or unrated bonds, notes or instruments, securities of or interests in any investment company or investment trust, commercial paper and Municipal Securities. As of September 30, 2016, the Sheriff had $156,524 invested in the SBA and $4,045,596 in Municipal Bonds, which was 22% of the Sheriffs total cash and cash equivalents and investments. Of the $156,524 invested in the SBA, 100% is invested in Florida PRIME. The Municipal Bonds are rated by Standard and Poor's from AA- through AAA and the ratings on the Municipal Bonds from Moody's are rated from AA2 through AAA. Florida PRIME is rated by Standard and Poor's. The current rating is AAAm. The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2016 is 50 days. Next interest rate reset days for floating rate securities are used in the calculation of the WAM. The weighted average life (WAL) of Florida Prime at September 30, 2016, is 70 days. Demand deposits in the 911 Wireless Fund in the amount of $1,974,115 include restricted cash of $1,332,004. This amount of cash is in a separate account according to Statute. The County must use the funds only for capital expenditures directly attributable to establishing and provisioning E-911 services, which may include next generation deployment. 9 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 Note 3—Interfund receivables and payables Interfund receivables and payables at September 30, 2016 consist of the following: General H I DTA Grants E-911 Other governmental Note 4—Capital assets Due From Due to Other Funds Other Funds $ 230,529 $ 557,579 - 684,855 - 54,947 - 48,093 1,191,069 76,124 $ 1,421,598 $ 1,421,598 A summary of changes in the Sheriffs capital assets, presented in the government -wide financial statements of the County, is as follows: Balance 10/01/2015 Additions Buildings and improvements $ 2,797,684 Equipment 42,757,440 Balance Deductions 09/30/2016 $ - $ - $ 2,797,684 5,088,507 1,460,365 46,385,582 $ 45,555,124 $ 5,088,507 $ 1,460,365 $ 49,183,266 Accumulated depreciation $ 25,177,642 $ 3,308,032 $ 1,266,750 $ 27,218,924 Note 5—Long-term debt The Sheriff permits employees to accumulate earned but unused vacation and sick pay benefits. The Sheriff is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation for compensated absences is accrued in the government -wide financial statements of the County. A summary of activity for the Sheriffs compensated absences obligation is as follows: Long-term debt, beginning of year Additions Reductions Long-term debt, end of year Compensated Absences $ 7,178,194 3,633,244 (3,321,296) $ 7,490,142 9 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 Note 6—Fund balances In the governmental fund financial statements, fund balance is composed of two classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. The governmental fund types classify fund balances as follows: Restricted Fund Balance - This classification includes revenue sources that are restricted to specific purposes externally imposed by creditors or imposed by law. Shared Asset Forfeiture Fund is restricted upon Ordinance 030-2000 which specifies use must be for law enforcement crime prevention, drug and alcohol abuse prevention and treatment, mental and physical health of minors and adults, and cultural, artistic, educational, recreational and sports programs for Monroe County youth. Federal Forfeiture Fund is restricted for law enforcement purposes based upon the Federal Justice and Treasury Guide to Equitable Sharing which outlines the specific uses of these funds. E-911 Fund is restricted based upon the E-911 costs allowable by State Statute [F.S. 365]. Teen Court is restricted by State Statute [F.S. 938.19]. Commissary Fund is restricted for Inmate and Farm as outlined by State Statute [F.S. 951.23(9)]. Inter -Agency Communications Fund is restricted by State Statute [318.21(9)]. Committed Fund Balance - Portion of fund balance that can only be used for specific purpose imposed by the Sheriff (highest level of decision -making authority). Any changes or removal of specific purposes requires action by the Sheriff. Contract Administrative Fund is committed for the administration of contracts between the Sheriff and third parties. Note 7—Retirement plan Plan description — The Sheriffs employees participate in the Florida Retirement System (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan") alternative to the FRS Pension Plan, which is administered by the State Board of Administration. 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. 10 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 Note 7—Retirement plan (continued) Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six 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 based on the five highest years of salary for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Senior Management Service class members who retire at or after age 62 with at least six 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 based on the five highest years of salary for each year of credited service. Elected Officers' class members who retire at or after age 62 with at least six 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% of their final average compensation based on the five highest years of salary for each year of credited service. Special Risk Administrative Support class members who retire at or after age 62 with at least six 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% of their final average compensation based on the five highest years of salary for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with six 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% of their final average compensation based on the five highest years of salary for each year of credited service. Substantial changes were made to the Pension Plan during fiscal year 2011 affecting members enrolled on or after July 1, 2011 by extending the vesting requirement for Regular, Senior Management Service, Elected Officers' and Special Risk Administrative Support class members to eight years of credited service and increasing normal retirement to age 65 with at least eight years of credited service or 33 years of service regardless of age. The vesting requirement for Special Risk class members was extended to eight years of credited service and increasing normal retirement to age 60 with at least eight years of credited service or 30 years of service regardless of age or age 57 with 30 years of combined Special Risk Class service and military service. Also, the final average compensation of these members will be based on the eight highest years of salary. A post -employment health insurance subsidy is also provided to eligible retired members through the FRS in accordance with Florida Statutes. Funding policy - All enrolled members of the FRS other than Deferred Retirement Option Program (DROP) participants are required to contribute 3% of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates. The employer contribution rates by job class for the periods from October 1, 2015 through June 30, 2016 and July 1, 2016 through September 30, 2016, respectively, were as follows: regular, 7.26% and 7.52%; special risk, 22.04% and 22.57%; special risk administrative support, 32.95% and 28.06%; county elected officers, 42.27% and 42.47%; senior management, 21.43% and 21.77%; and DROP participants, 12.88% and 12.99%. During the fiscal year ended September 30, 2016, the Sheriff contributed to the Plan an amount equal to 20.24% of covered payroll. The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Eligible retirees and beneficiaries receive a monthly health insurance subsidy payment of $5 for each year of creditable service, with a minimum payment of $30 and a maximum payment of $150 per month. The HIS Plan is funded by required contributions from FRS participating employees as set forth by the Florida Legislature, based on a percentage of gross compensation for all active FRS members. 11 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 Note 7—Retirement plan (continued) In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP). This program allows eligible members 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. There are no required contributions by DROP participants. For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occurs at one year of service. These participants receive a contribution for self -direction in an investment product with a third party administrator selected by the State Board of Administration. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. The Sheriff recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan, the HIS Plan and the investment plan, amounting to $4,102,679, $534,964 and $817,235 respectively, for the fiscal year ended September 30, 2016. The Sheriffs payments for the Pension Plan and the HIS Plan after June 30, 2016, the measurement date used to determine the net pension liability associated with the Pension Plan and HIS Plan, amounted to $1,425,689 and $151,523, respectively. The Sheriff is not legally required to and does not accumulate expendable available resources to liquidate the retirement obligation related to its employees. Accordingly, the net pension liability and associated deferred outflows and deferred inflows are presented on the government -wide financial statements of the County, following requirements of GASB Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68. 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 from the website www.dms.myflorida.com/workforce—operations/retirement/publications. Monroe County Sheriffs office offers 457 Deferred Compensation Programs to all employees of the agency. Employees may participate in the plan through payroll deductions and the plan is funded by Mass Mutual Financial Group and AIG Valic group variable annuity contract. Contributions are invested at the employee's direction through the options available under the program. Employees are fully vested at time of enrollment. The Monroe County Sheriffs Office has no liability beyond the payment of bi-weekly payroll contributions. Monroe County Sheriffs office also offers a profit-sharing pension plan known as the 401(a) Discretionary Contribution Pension Plan. Only full-time employees of the Sheriffs office classified as Telecommunications Officer, Telecommunications Supervisor, or Telecommunications Director are covered under the pension program established. Effective July 20, 2009, new hired employees will be exempt from the Plan. Those classes of employees are eligible to participate in the program on the first day of the 12-consecutive month period commencing on October 1. 12 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 Note 7—Retirement plan (continued) The plan allows the agency to contribute ongoing non -elective contributions to each eligible employee's account. The routine amount contributed to each employees account is the variance between FRS's special risk retirement rate and the rate given to the FRS class -group that the Dispatcher's fall into. The Sheriff contributed $16,024 for the year ended September 30, 2016 and there were no employee contributions. Note 8—Other postemployment benefits (OPEB) Plan The Monroe County Board of County Commissioners (BOCC) administers a single -employer defined benefits healthcare plan (the "Plan"). Florida Statutes 112.0801 requires the County to provide retirees and their eligible dependents with the option to participate in the Plan if the County provides health insurance to its active employees and their eligible dependents. The Plan provides medical coverage, prescription drug benefits, and life insurance to both active and eligible retired employees. The Plan does not issue a publicly available financial report. The BOCC may amend the plan design, with changes to the benefits, premiums and/or levels of participant contribution at any time. In an open session, on at least an annual basis and prior to the annual enrollment process, the BOCC approves the rates for the coming calendar year for the retiree and County contributions. Eligibility for postemployment participation in the Plan is limited to full-time employees of the County, and the Constitutional Officers. Employees who retire as an active participant in the Plan and were hired on or after October 1, 2001 may continue to participate in the Plan by paying the monthly premium established annually by the BOCC. Employees who retire as an active participant in the plan, were hired prior to October 1, 2001, have at least ten years of full-time service with the County, and meet the retirement criteria of the Florida Retirement System (FRS), may maintain their group health insurance benefits with Monroe County following their retirement provided they contribute a premium of $5 per month for each year of creditable service with the FRS at time of retirement with Monroe County and will pay at a minimum $50 per month up to the maximum of $150 per month. Retirees who have met the requirements for early retirement, have not achieved age 60 and whose age and years of service do not equal 70 (rule of 70) must pay the standard monthly premium until the age criteria or the rule of 70 is met. At that time, the retiree's cost of participation will be $5 for each year of creditable service with the FRS at time of retirement with Monroe County and will pay at a minimum $50 per month up to the maximum of $150 per month. Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are met. The BOCC engages an actuarial firm on a biennial basis to determine the County's actuarially determined annual required contribution and unfunded obligation. The Sheriff has no responsibility to the Plan other than to make the periodic payments determined by the BOCC. Further information about the Plan is available in the County's Comprehensive Annual Financial Report which is published on the Clerk's website at www.clerk-of- the-court.com. 13 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 Note 9—Risk management The Sheriff 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 Sheriff participates in the coverage provided by the Board for Workers' Compensation, Group Insurance, and Risk Management Internal Service Funds. Under these programs, Workers' Compensation provides $500,000 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 $200,000 self -insured retention, and building property damage is covered for the actual value of the building with a deductible of $50,000. 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 Sheriff makes payments to the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. Note 10—Litigation From time to time, the Sheriff is a party to various lawsuits and claims, which it is vigorously defends. Such matters arise out of the normal course of its operation, some of which are covered by insurance policies or by the Sheriffs participation in the Florida Sheriffs Self -Insurance Fund. 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 Sheriffs financial position. Note 11—Lease commitments Operating leases - The Sheriff leases office space, equipment and vehicles under operating lease agreements. These lease agreements include options to extend the leases for additional terms as well as cancellation provisions. Total lease payments made during the fiscal year ended September 30, 2016 were $5,322,206. The following is a schedule by years of minimum future rentals under operating leases as of September 30, 2016: Year Ending September 30, 2017 $ 5,156,874 2018 4,873,843 2019 4,945,158 2020 4,694,257 2021 4,440,807 2022-2026 11,856,698 Total $35,967,637 For those leases that are increased annually by the Consumer Price Index (CPI) and the lease agreement does not state a minimum or maximum rate for the remainder of the lease term, the same known lease expense is used for the remainder of the lease term in the future rental schedule above. Note 12—Grants The Sheriff is the recipient of grants that are subject to special compliance requirements and audits by the grantor agencies that may result in disallowed expense amounts. These amounts constitute a contingent liability of the Sheriff. The Sheriff does not believe any contingent liabilities to be material to the financial statements. 14 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- GENERAL FUND YEAR ENDED SEPTEMBER 30, 2016 Revenues: Intergovernmental - BOCC Investment income Miscellaneous income Total revenues Expenditures: Current: Personnel services Operating expenses Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Insurance proceeds Transfer (to)/from Board of County Commissioners Transfer (to)/from other governments Transfers (to)/from other funds Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 45,382,768 $ 45,447,768 $ 45,475,010 $ 27,242 - - 49,278 49,278 - 336,148 336,148 45,382,768 45,447,768 45,860,436 412,668 34,731,496 33,321,496 32,816,515 504,981 9,611,901 9,851,901 9,383,529 468,372 919,371 2,174,371 1,684,184 490,187 45,262,768 45,347,768 43,884,228 1,463,540 120,000 100,000 1,976,208 1,876,208 - - 45,088 45,088 (1,627,222) (1,627,222) (297,211) (297,211) (120,000) (100,000) (96,863) 3,137 (120,000) (100,000) (1,976,208) (1,876,208) 15 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -TRAUMA STAR YEAR ENDED SEPTEMBER 30, 2016 Revenues: Intergovernmental - BOCC Total revenues Expenditures: Current: Personnel services Operating expense Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfer (to)/from Board of County Commissioners Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 1,760,333 $ 4,410,333 $ 4,410,333 $ 1,760,333 4,410,333 4,410,333 - 501,563 631,563 615,703 15,860 1,243,770 1,233,770 1,141,374 92,396 15,000 2,545,000 2,520,175 24,825 1,760,333 4,410,333 4,277,252 133,081 - - 133,081 133,081 (133,081) (133,081) (133,081) (133,081) 16 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - RADIO COMMUNICATIONS YEAR ENDED SEPTEMBER 30, 2016 Revenues: Intergovernmental - BOCC Charges for services Total revenues Expenditures: Current: Personnel services Operating expense Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfer (to)/from Board of County Commissioners Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 435,417 $ 475,417 $ 475,417 $ - - - 26,699 26,699 435,417 475,417 502,116 26,699 154,389 164,389 159,601 4,788 273,028 258,028 237,726 20,302 8,000 53,000 44,279 8,721 435,417 475,417 441,606 33,811 60,510 60,510 (60,510) (60,510) (60,510) (60,510) 17 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - HIDTA GRANTS FUND YEAR ENDED SEPTEMBER 30, 2016 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental - other government units $ 20,500,000 $ 20,100,000 $ 19,844,335 $ (255,665) Total revenues 20,500,000 20,100,000 19,844,335 (255,665) Expenditures: Current: Personnel services 4,100,000 4,200,000 4,018,454 181,546 Operating expenses 16,000,000 15,100,000 15,030,555 69,445 Capital outlay 400,000 800,000 795,326 4,674 Total expenditures 20,500,000 20,100,000 19,844,335 255,665 Excess of revenues over (under) expenditures - - - - Other financing sources: Transfer (to)/from other governments Total other financing sources Excess of revenues and other financing sources over expenditures Fund balances, beginning of year Fund balances, end of year $ $ $ $ ❑ 18 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GRANTS FUND YEAR ENDED SEPTEMBER 30, 2016 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental - BOCC $ 50,000 $ 50,000 $ 28,709 $ (21,291) Intergovernmental - other government units 450,000 400,000 315,062 (84,938) Total revenues 500,000 450,000 343,771 (106,229) Expenditures: Current: Personnel services 450,000 400,000 390,123 9,877 Operating expenses 50,000 50,000 40,912 9,088 Total expenditures 500,000 450,000 431,035 18,965 Excess of revenues over (under) expenditures - - (87,264) (87,264) Other financing sources: Transfers (to)/from other funds 87,264 87,264 Total other financing sources 87,264 87,264 Excess of revenues over expenditures and other financing sources (uses) - - Fund balances, beginning of year Fund balances, end of year $ $ $ $ 19 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - SHARED ASSET FORFEITURE FUND YEAR ENDED SEPTEMBER 30, 2016 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Investment income $ 80,000 $ 130,000 $ 126,835 $ 3,165 Total revenues 80,000 130,000 126,835 3,165 Expenditures: Current: Personnel services 1,000 1,000 131 869 Operating expenses 1,100 1,100 356 744 Aid to other governments/non-profits 148,900 133,900 133,533 367 Total expenditures 151,000 136,000 134,020 1,980 Excess of revenues over (under) expenditures (71,000) (6,000) (7,185) 1,185 Fund balances, beginning of year 5,073,608 5,073,608 5,073,608 - Fund balances, end of year $ 5,002,608 $ 5,067,608 $ 5,066,423 $ 1,185 20 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - FEDERAL FORFEITURE FUND YEAR ENDED SEPTEMBER 30, 2016 Revenues: Intergovernmental - other government units Investment income Total revenues Expenditures: Current: Personnel services Operating expenses Capital expenses Aid to other governments/non-profits Total expenditures Excess of revenues over (under) expenditures Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ $ $ 149,903 $ 149,903 22,709 22,709 172,612 172,612 45,000 37,000 34,345 2,655 5,000 7,000 5,135 1,865 - 6,000 5,350 650 - 400,000 382,869 17,131 50,000 450,000 427,699 22,301 (50,000) (450,000) (255,087) 194,913 4,552,839 4,552,839 4,552,839 - $ 4,502,839 $ 4,102,839 $ 4,297,752 $ 194,913 21 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - E-911 YEAR ENDED SEPTEMBER 30, 2016 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental - BOCC $ 480,000 $ 480,000 $ 454,775 $ (25,225) Investment income 20,000 20,000 10,763 (9,237) Total revenues 500,000 500,000 465,538 (34,462) Expenditures: Current: Personnel services 110,000 450,000 442,486 7,514 Operating expense 180,000 120,000 115,339 4,661 Capital outlay 50,000 - - - Total expenditures 340,000 570,000 557,825 12,175 Excess of revenues over (under) expenditures 160,000 (70,000) (92,287) (22,287) Other financing sources: Transfers (to)/from Board of County Commissioners Transfers (to)/from other governments - Total other financing sources - Excess of revenues over expenditures and other financing sources (uses) 160,000 (70,000) (92,287) (22,287) Fund balances, beginning of year 2,059,645 2,059,645 2,059,645 Fund balances, end of year $ 2,219,645 $ 1,989,645 $ 1,967,358 $ (22,287) 22 OTHER SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF GENERAL, TRAUMA STAR AND RADIO COMMUNICATIONS FUNDS BY SERVICE AREA YEAR ENDED SEPTEMBER 30, 2016 General Total Radio Islamorada Marathon Unincorporated General General Trauma Star Communications Total Revenues Intergovernmental- BOCC $ 1,673,120 $ 1,418,726 $ 3,693,924 $ 38,689,240 $ 45,475,010 $ 4,410,333 $ 475,417 $ 50,360,760 Charges for services - - - - - - 26,699 26,699 Investment income - - - 49,278 49,278 - - 49,278 Miscellaneous income - - - 336,148 336,148 - - 336,148 Total revenues 1,673,120 1,418,726 3,693,924 39,074,666 45,860,436 4,410,333 502,116 50,772,885 Expenditures Current: Personnel services 1,375,128 1,008,102 2,831,372 27,601,913 32,816,515 615,703 159,601 33,591,819 Operating expenses 89,016 151,257 353,041 8,790,215 9,383,529 1,141,374 237,726 10,762,629 Capital Outlay 83,880 87,252 205,457 1,307,595 1,684,184 2,520,175 44,279 4,248,638 Total expenditures 1,548,024 1,246,611 3,389,870 37,699,723 43,884,228 4,277,252 441,606 48,603,086 Excess of revenues over (under) expenditures 125,096 172,115 304,054 1,374,943 1,976,208 133,081 60,510 2,169,799 Other financing sources (uses): Insurance proceeds - - - 45,088 45,088 - - 45,088 Transfer(to)/from Board of County Commissioners - - (304,054) (1,323,168) (1,627,222) (133,081) (60,510) (1,820,813) Transfer (to)/from other governments (125,096) (172,115) - - (297,211) - - (297,211) Transfer(to)/from other funds (96,863) (96,863) (96,863) Total other financing sources (uses) (125,096) (172,115) (304,054) (1,374,943) (1,976,208) (133,081) (60,510) (2,169,799) Excess of revenues war (under) expenditures and other financing sources (uses) - - - - - - - - Fund balances, beginning of year - - - - - - - - Fund balances, end of year $ - $ - $ - $ - $ - $ - $ - $ - 23 MONROE COUNTY, FLORIDA SHERIFF NON -MAJOR SPECIAL REVENUE FUNDS DESCRIPTION The purpose of each non -major special revenue fund in the combining balance sheet and combining statement of revenues, expenditures and changes in fund balances is described below. Teen Court Fund - This fund accounts for receipts and disbursements pertaining to a program designed to deterjuveniles who are becoming involved in crime. Law Enforcement Trust Fund - This fund accounts for expenditures to non-profit organizations to help deter drug use and juvenile delinquency. State Fine and Forfeiture (State Forfeiture) - This fund accounts for the proceeds received primarily from seizures and forfeitures. Contract Administrative Fund - This fund accounts for the administration of contracts between the Sheriff and third parties. Commissary Fund - This fund accounts for receipts and disbursements of inmate telephone commissions, canteen revenues and other inmate programs. Inter -Agency Communications Fund - This fund accounts for revenues and expenditures allocated for radio communications. 24 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2016 Law Enforcement ASSETS Cash and cash equivalents $ - $ 17 Due from Board of County Commissioners - - Due from other funds 49,897 - Due from governmental units 4,361 - Due from others - - Total assets $ 54,258 $ 17 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - Due to Board of County Commissioners - 2 Due to other governmental units - - Due to other funds - 15 Due to others - - Total liabilities - 17 Deferred Inflows of Resources: Unavailable revenues - - Fund balances, restricted Teen court program 54,258 - Inter -agency communication program - - Inmate welfare program - - Farm program - - Fund balances, committed Contract administration - - Total fund balances 54,258 - Total liabilities, deferred inflows of resources and fund balances $ 54,258 $ 17 25 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2016 ASSETS Cash and cash equivalents $ Due from Board of County Commissioners Due from other funds Due from governmental units Due from others Total assets $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ Due to Board of County Commissioners Due to other governmental units Due to other funds Due to others Total liabilities Deferred Inflows of Resources: Unavailable revenues Fund balances, restricted Teen court program Inter -agency communication program Inmate welfare program Farm program Fund balances, committed Contract administration Total fund balances Total liabilities, deferred inflows of resources and fund balances $ State Contract Forfeiture Administrative Commissary 20,707 $ - $ 644,049 15 1,141,133 24 - 108,612 - 20,722 $ 1,249,745 $ 690,900 - $ - $ 39,575 20,722 39,409 - - 4,433 - - 46,757 19,152 20,722 90,599 58,727 - - 8,264 - - 574,504 - - 49,405 - 1,159,146 - 1,159,146 623,909 20,722 $ 1,249,745 $ 690,900 26 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2016 ASSETS Cash and cash equivalents Due from Board of County Commissioners Due from other funds Due from governmental units Due from others Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to Board of County Commissioners Due to other governmental units Due to other funds Due to others Total liabilities Deferred Inflows of Resources: Unavailable revenues Fund balances, restricted Teen court program Inter -agency communication program Inmate welfare program Farm program Fund balances, committed Contract administration Total fund balances Total liabilities, deferred inflows of resources and fund balances Total Nonmajor Inter -Agency Special Revenue Communications Funds $ 399,674 $ 1,064,447 22,989 22,989 - 1,191,069 100 113,073 4,769 51,596 $ 427,532 $ 2,443,174 $ - $ 39,575 - 60,133 - 4,433 10,200 76,124 10,200 180,265 - 8,264 - 54,258 417,332 417,332 - 574,504 - 49,405 - 1,159,146 417,332 2,254,645 $ 427,532 $ 2,443,174 27 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2016 Law Enforcement Teen Court Trust Fund Revenues: Intergovernmental - BOCC $ $ 51,233 Intergovernmental - other government units - Charges for services 49,087 Fines and forfeitures - Investment income 15 Miscellaneous - - Total revenues 49,087 51,248 Expenditures: Current: Personnel services 49,187 - Operating expenses 5,808 3,498 Capital outlay - - Aid to other governments/non-profits - 47,750 Total expenditures 54,995 51,248 Excess of revenues over (under) expenditures (5,908) - Other financing sources (uses): Transfers (to)/from other funds Transfer (to)/from Board of County Commissioners Transfer (to)/from other governments Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) (5,908) Fund balances, beginning of year 60,166 Fund balances, end of year $ 54,258 $ 28 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2016 Revenues: Intergovernmental - BOCC Intergovernmental - other government units Charges for services Fines and forfeitures Investment income Miscellaneous income Total revenues Expenditures: Current: Personnel services Operating expenses Capital outlay Aid to other governments/non-profits Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers (to)/from other funds Transfer (to)/from Board of County Commissioners Transfer (to)/from other governments Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year State Contract 294,385 - 3,440,314 538,292 48,372 - - 95 2,939 2,927 48,467 3,737,638 553,440 - 3,361,409 167,950 27,745 232,451 290,160 - 33,766 2,078 27,745 3,627,626 460,188 20,722 110,012 93,252 - 9,598 - (20,722) - (36,248) (20,722) (26,650) - 83,362 93,252 1,075,784 530,657 $ $ 1,159,146 $ 623,909 29 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2016 Revenues: Intergovernmental - BOCC Intergovernmental - other government units Charges for services Fines and forfeitures Investment income Miscellaneous income Total revenues Expenditures: Current: Personnel services Operating expenses Capital outlay Aid to other governments/non-profits Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers (to)/from other funds Transfer (to)/from Board of County Commissioners Transfer (to)/from other governments Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Total Nonmajor Inter -Agency Special Revenue Communications Funds $ 134,232 $ 185,465 - 294,385 23,415 4,051,108 - 48,372 2,151 8,127 159,798 4,599,678 - 3,578,546 159,246 718,908 - 35,844 47,750 159,246 4,381,048 552 218,630 9,598 (20,722) (36,248) (47,372) 552 171,258 416,780 2,083,387 $ 417,332 $ 2,254,645 30 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL -TEEN COURT FUND YEAR ENDED SEPTEMBER 30, 2016 Revenues: Charges for services Total revenues Expenditures: Current: Personnel services Operating expense Total expenditures Excess of revenues over (under) expenditures Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 63,000 $ 50,000 $ 49,087 $ (913) 63,000 50,000 49,087 (913) 45,000 53,000 49,187 3,813 5,000 7,000 5,808 1,192 50,000 60,000 54,995 5,005 13,000 (10,000) (5,908) 4,092 13,000 (10,000) (5,908) 4,092 60,166 60,166 60,166 $ 73,166 $ 50,166 $ 54,258 $ 4,092 31 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- LAW ENFORCEMENT TRUST FUND YEAR ENDED SEPTEMBER 30, 2016 Revenues: Intergovernmental - BOCC Total revenues Expenditures: Current: Operating expenses Aid to other governments/non-profits Total expenditures Excess of revenues over (under) expenditures Other financing sources Transfers (to)/from other funds Total other financing sources Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 55,000 $ 52,000 $ 51,248 $ (752) 55,000 52,000 51,248 (752) 4,000 3,498 502 55,000 52,000 51,248 752 32 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - STATE FORFEITURE FUND YEAR ENDED SEPTEMBER 30, 2016 Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Operating expenses Total expenditures Excess of revenues over (under) expenditures Other financing uses: Transfer (to)/from Board of County Commissioners Total other financing uses Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 74,500 $ 49,500 $ 48,372 $ (1,128) 500 500 95 (405) 75,000 50,000 48,467 (1,533) 20,000 28,000 27,745 255 20,000 28,000 27,745 255 55,000 22,000 20,722 (1,278) (55,000) (22,000) (20,722) 1,278 (55,000) (22,000) (20,722) 1,278 33 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - CONTRACT ADMINISTRATIVE FUND YEAR ENDED SEPTEMBER 30, 2016 Revenues: Intergovernmental - BOCC Intergovernmental - other governmental units Charges for services Interest income Total revenues Expenditures: Current: Personnel Operating expenses Capital expenses Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Transfers (to)/from other funds Transfers (to)/from other governments Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 7,500 $ - $ - $ 365,000 400,000 294,385 (105,615) 3,300,000 3,302,500 3,440,314 137,814 2,500 2,500 2,939 439 3,675,000 3,705,000 3,737,638 32,638 3,220,000 3,390,000 3,361,409 28,591 225,000 240,000 232,451 7,549 60,000 35,000 33,766 1,234 3,505,000 3,665,000 3,627,626 37,374 170,000 40,000 110,012 70,012 - - 9,598 9,598 (170,000) (40,000) (36,248) 3,752 (170,000) (40,000) (26,650) 13,350 83,362 83,362 1,075, 784 1,075, 784 1,075, 784 - $ 1,075,784 $ 1,075,784 $ 1,159,146 $ 83,362 34 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- COMMISSARY FUND YEAR ENDED SEPTEMBER 30, 2016 Revenues: Charges for services Investment income Miscellaneous income Total revenues Expenditures: Current: Personnel expenses Operating expenses Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Transfers (to)/from other funds Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Original Final Variance With Final Positive $ 449,800 $ 548,000 $ 538,292 $ (9,708) 3,200 3,200 2,927 (273) 22,000 13,800 12,221 (1,579) 475,000 565,000 553,440 (11,560) 165,000 170,000 167,950 2,050 205,000 300,000 290,160 9,840 35,000 2,500 2,078 422 405,000 472,500 460,188 12,312 70,000 92,500 93,252 752 530,657 530,657 530,657 - $ 600,657 $ 623,157 $ 623,909 $ 752 35 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - INTER -AGENCY COMMUNICATIONS FUND YEAR ENDED SEPTEMBER 30, 2016 Revenues: Intergovernmental - BOCC Charges for services Investment income Total revenues Expenditures: Current: Operating expense Total expenditures Excess of revenues over (under) expenditures Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 157,000 $ 135,000 $ 134,232 $ (768) 40,000 25,000 23,415 (1,585) 3,000 5,000 2,151 (2,849) 200,000 165,000 159,798 (5,202) 210,000 165,000 159,246 5,754 210,000 165,000 159,246 5,754 (10,000) 552 552 416,780 416,780 416,780 $ 406,780 $ 416,780 $ 417,332 $ 552 36 MONROE COUNTY, FLORIDA SHERIFF AGENCY FUNDS DESCRIPTION The purpose of each agency fund in the combining financial statement on the following page is described below. Civil Process Fund - This fund accounts for receipt and disbursement of funds received for the service of papers by the Sheriff. Bonds Fund - This fund accounts for receipts and disbursements of the Bonds Fund. Inmate Fund - This fund accounts for receipts and disbursements of the monies held by the Sheriff on behalf of incarcerated inmates. 37 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED SEPTEMBER 30, 2016 October 1, September 30, 2015 Additions Deductions 2016 Civil Process Assets Cash and cash equivalents $ 58,538 $ 81,910 $ 135,393 $ 5,055 Total assets $ 58,538 $ 81,910 $ 135,393 $ 5,055 Liabilities Accounts payable $ 430 $ - $ 430 $ - Due to Board of County Commissioners 4,940 50,363 50,248 5,055 Due to other funds 6,447 - 6,447 - Due to other governments 33,178 - 33,178 Due to individuals 13,543 31,152 44,695 - Totalliabilities $ 58,538 $ 81,515 $ 134,998 $ 5,055 Bonds Assets Cash and cash equivalents $ 485,497 $ 631,636 $ 533,104 $ 584,029 Total assets $ 485,497 $ 631,636 $ 533,104 $ 584,029 Liabilities Due to individuals $ 485,497 $ 631,636 $ 533,104 $ 584,029 Total liabilities $ 485,497 $ 631,636 $ 533,104 $ 584,029 Inmate Assets Cash and cash equivalents $ 19,765 $ 815,144 $ 796,742 $ 38,167 Due from others (TouchPay) 4,379 860,238 864,475 142 Total assets $ 24,144 $ 1,675,382 $ 1,661,217 $ 38,309 Liabilities Accounts payable $ 6,829 $ 513,740 $ 504,940 $ 15,629 Due to General Fund 5,101 - 5,101 - Due to Commissary Fund 4,963 - 4,963 - Due to individuals 7,251 1,030,521 1,015,092 22,680 Total liabilities Total All Agency Funds Assets Cash and cash equivalents $ 563,800 $ 1,528,690 $ 1,465,239 $ 627,251 Due from others 4,379 860,238 864,475 142 Total assets $ 568,179 $ 2,388,928 $ 2,329,714 $ 627,393 Liabilities Accounts payable $ 7,259 $ 513,740 $ 505,370 $ 15,629 Due to Board of County Commissioners 4,940 50,363 50,248 5,055 Due to other funds 16,511 - 16,511 - Due to other governments 33,178 - 33,178 - Due to individuals 506,291 1,693,309 1,592,891 606,709 Total liabilities $ 568,179 $ 2,257,412 $ 2,198,198 $ 627,393 38 SUPPLEMENTARY REPORTS Cherry r-' Report of Independent Auditor 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 Rick Ramsay, Sheriff of Monroe County, Florida We have audited, in accordance with the 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, the financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Sheriff (the "Sheriff') as of and for the year ended September 30, 2016, and the related notes to the financial statements, and have issued our report thereon dated February 7, 2017 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. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriffs internal control over financial reporting ("internal control") to determine the audit procedures that are appropriate in the circumstances 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 Sheriffs internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Sheriffs internal control over financial reporting. A deficiency in internal control 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 and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriffs 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. 39 Purpose of this Report This report is intended solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Sheriffs internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriffs internal control and compliance. Accordingly, this communication is not suitable for any other purpose. C L v g Orlando, Florida February 7, 2017 M Cherry Bekaert- Independent Auditor's Management Letter To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida Report on the Financial Statements We have audited the financial statements of the Monroe County, Florida Sheriff (the "Sheriff'), as of and for the year ended September 30, 2016, and have issued our report thereon dated February 7, 2017. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Report of Independent Auditor 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 and our Report of Independent Accountant on Compliance with Local Government Investment Policies regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 7, 2017, should be considered in conjunction with this management letter. Prior Audit Findings 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 findings and recommendations made in the preceding annual financial audit report. There were no recommendations made in the preceding audit report. Official Title and Legal Authority Section 10.554(1)(i)4., 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. The Sheriff is a separately elected county official established pursuant to the Constitution of the State of Florida. There are no component units related to the Sheriff. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 41 Purpose of this Letter The purpose of this management letter is to communicate certain matters prescribed in Chapter 10.550, Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose. Orlando, Florida February 7, 2017 CVA Cherry aert"' Report of Independent Accountant on Compliance with Local Government Investment Policies To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida Report on Compliance We have examined the Monroe County, Florida Sheriff (the "Sheriff'), compliance with local government investment policy requirements of Section 218.415, Florida Statutes, for the year ended September 30, 2016. Management is responsible for the Sheriffs compliance with those requirements. Our responsibility is to express an opinion on the Sheriff's compliance based on our examination. Scope Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Sheriffs compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriffs compliance with specified requirements. Opinion In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016. Orlando, Florida February 7, 2017 43