Fiscal Year 2018MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
FINANCIAL STATEMENTS
As of and for the Year Ended September 30, 2018
And Reports of Independent Auditor
%, Cherry Bekaert'"�
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
TABLE OF CONTENTS
REPORT OF INDEPENDENT AUDITOR 1-2
FINANCIAL STATEMENTS
Balance Sheet - Governmental Funds 3
Statement of Revenues, Expenditures and
Changes in Fund Balance - Governmental Funds------------------------------------------------------------------------------- 4
Statement of Fiduciary Net Position -
AgencyFund .................................................................................................................................... 5
Notes to Financial Statements 6-13
----------------------------------------------------------------------------------------------------------
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures -
Budget to Actual - General Fund ....................................................................................................... 14
Schedule of Revenues and Expenditures —
Budget to Actual — Special Revenue Court Related Fund .................................................................... 15
Schedule of Revenues and Expenditures —
Budget to Actual — Special Revenue Records Modernization Fund ...................................................... 16
SUPPLEMENTARY INFORMATION
Schedule of Changes in Assets and Liabilities -
AgencyFund .................................................................................................................................... 17
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---------------------------------- 18-19
Independent Auditor's Management Letter 20
Report of Independent Accountant on Compliance with Local Government
Investment Policies, Article V Requirements and Depository Requirements
of Sections 218.415, 28.35, 28.36 and 61.181, Florida Statutes-------------------------------------------------------- 21
101041
o0
Report of Independent Auditor
To the Honorable Kevin Madok
Clerk of the Circuit Court 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 Clerk of the Circuit Court (the "Clerk") as of and for the year ended
September 30, 2018, 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 from 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 Clerk's 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 Clerk's 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 Clerk as of September
30, 2018, and the respective changes in financial position thereof for the year then ended, in accordance 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 the Rules of the Auditor General of the State of Florida. In accordance
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 Clerk. They do not
purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2018,
and the changes in its financial position for the fiscal year then ended in accordance 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.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Clerk's financial statements. The accompanying 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 accompanying 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 auditing standards generally accepted in the
United States of America. In our opinion, the 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 12, 2019 on
our consideration of the Clerk's 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 Clerk's internal control over financial reporting and compliance.
Orlando, Florida
February 12, 2019
FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2018
ASSETS
Assets:
Cash and cash equivalents
Due from other governmental agencies
Due from Board of County Commissioners
Due from others
Due from other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other governmental agencies
Due to Board of County Commissioners
Due to other funds
Total liabilities
Deferred Inflow of Resources:
Unavailable revenue
Fund Balances:
Restricted
Total liabilities, deferred inflow of resources
and fund balances
Major Funds
Court Records
General Related Modernization
Fund Fund Fund Totals
$ 1,496,518 $ 1,838,212 $ 2,267,151 $ 5,601,881
139 102,481 - 102,620
2 2,577 - 2,579
- 40 - 40
- 108,770 - 108,770
$ 1,496,659 $ 2,052,080 $ 2,267,151 $ 5,815,890
$ 121,591 $ 284,280 $ 3,412 $ 409,283
31,640 493,201 - 524,841
1,343,428 1,077,384 - 2,420,812
- 97,370 - 97,370
1,496,659 1,952,235 3,412 3,452,306
- 99,845 - 99,845
- - 2,263,739 2,263,739
$ 1,496,659 $ 2,052,080 $ 2,267,151 $ 5,815,890
See notes to financial statements. 3
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2018
Revenues:
Intergovernmental - Other
Intergovernmental - Board of County Commissioners
Charges for services
Fines and forfeitures
Interest income
Miscellaneous
Total revenues
Expenditures:
Current:
General government:
Salaries and benefits
Operating
Court related:
Salaries and benefits
Operating
Capital outlay
Total expenditures
Excess of revenues over (under) expenditures
Other financing (uses):
Transfer to Board of County Commissioners
Transfer to Florida Department of Revenue
Net change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Major Funds
Court
Records
General
Related
Modernization
Fund
Fund
Fund
Totals
$ 6,804
$ 1,347,180
$ -
$ 1,353,984
3,751,499
1,194,135
-
4,945,634
801,007
1,038,052
289,416
2,128,475
-
1,356,413
-
1,356,413
28,246
19,817
38,619
86,682
205
4,875
-
5,080
4,587,761
4,960,472
328,035
9,876,268
2,815,628 - - 2,815,628
403,958 - - 403,958
-
3,181,228
-
3,181,228
-
241,876
401,973
643,849
31,345
1,075
30,207
62,627
3,250,931
3,424,179
432,180
7,107,290
1,336,830
1,536,293
(104,145)
2,768,978
(1,336,830)
(1,072,533)
-
(2,409,363)
-
(463,760)
-
(463,760)
- - (104,145) (104,145)
- - 2,367,884 2,367,884
$ - $ - $ 2,263,739 $ 2,263,739
See notes to financial statements. 4
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUND
SEPTEMBER 30, 2018
Assets:
Cash and cash equivalents
Due from other governmental agencies
Due from others
Total assets
Liabilities:
Due to others
Due to other governmental agencies
Due to Board of County Commissioners
Due to other funds
Total liabilities
$ 6,501,617
74,287
20,879
$ 6,596,783
$ 4,331,115
2,166,238
88,030
11,400
$ 6,596,783
See notes to financial statements. 5
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
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. The financial statements of the Clerk have been prepared in accordance with the accounting
principles and reporting guidelines established by the Governmental Accounting Standards Board (the "GASB").
Entity status for financial reporting purposes is governed by GASB Statement No. 14, as amended. Although the
Clerk's Office is operationally autonomous and legally separate from the Board of County Commissioners (the
"Board"), 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 Clerk is reported as a part of the primary
government of the County.
Description of Funds — The accounting records are organized for reporting purposes as three governmental funds
and a fiduciary fund.
General Fund — The General Fund is used to account for all revenues and expenditures applicable to the
general operations of the Clerk.
Court Related Fund — A Special Revenue Fund is used to account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditures for specified purposes other than debt
service or capital projects. The Court Related Fund is a special revenue fund created to account for and report
State and local funding restricted for the expenditure of court functions. Any excess funding over actual
expenditures is returned to either the Florida Department of Revenue (the "DOR") or the Board, depending
on where funding originated.
Records Modernization Fund — The Records Modernization Fund is a special revenue fund used to account
for and report recording fees restricted for records modernization and court technology as specified in Florida
Statutes 28.24(12)(d) and (e).
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 Florida Statute 218.39(2), and Chapter 10.550, Rules
of the Auditor General, which require the Clerk to only present fund financial statements.
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, to be available
and thus recognizes them as revenues of the current year. 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.
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
Note 1—Summary of significant accounting policies (continued)
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 of the Florida Constitution. Any excess of court -related revenue over court -related expenditures as of September
30 each year is paid to the DOR's Clerks' Trust Fund. Any excess of non -court related revenue over non -court
related expenditures is reflected as a liability to the Board.
Fund Balances Presentation — The Records Modernization Fund balance of the governmental funds is classified
as restricted. 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 — Expenditures are controlled by appropriations in accordance with the budgetary
requirements set forth in the Florida Statutes. The budget is prepared on a basis consistent with generally
accepted accounting principles.
The Florida Clerks of Court Operations Corporation (the "CCOC") approves only the budget for the Clerk's court -
related activities for the twelve -months ended September 30, 2018. The non -court -related budget is the Clerk's
General Fund budget and is approved by the Board.
Cash and Cash Equivalents — The Clerk's cash and cash equivalents consist of demand deposits insured by the
Federal Deposit Insurance Corporation ("FDIC") and cash on hand for operations.
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 and reported in the County's CAFR's government -wide financial statements.
The Clerk maintains custodial responsibility for the capital assets used by the Clerk's offices.
In addition, the Board 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. The Clerk is not legally required to and does not accumulate expendable available financial resources
to liquidate this obligation. The obligation for compensated absences is accrued and reported in the County's
CAFR's government -wide financial statements.
Deferred Inflow of Resources — At the end of the fiscal year, the Clerk has unavailable revenue that applies to a
future period and therefore will not be recognized as an inflow of resources until that time. The Clerk's Court
Related Fund reports unavailable revenues where receipts are not received within the 60-day time frame for
revenue recognition. The unavailable revenue is the final settle -up for the fiscal year that the Clerk will receive
from the CCOC for Article V Trust Fund monies.
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
Note 1—Summary of significant accounting policies (continued)
A summary of activity for the Clerk's compensated absences obligation is as follows:
Balance, October 1, 2017 $ 506,383
Earned 478,733
Used (343,859)
Balance, September 30, 2018 $ 641,257
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.
Subsequent Events — The Clerk has evaluated subsequent events through February 12, 2019, in connection with
the preparation of these financial statements, which is the date the financial statements were available to be
issued.
Note 2—Deposits and investments
The Clerk follows Florida Statutes for its investment policy, which authorizes investments in certificates of deposit,
savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the
Florida State Board of Administration, and obligations of the U.S. Government and government agencies
unconditionally guaranteed by the U.S. Government.
The Clerk's deposits include $12,101,998 in interest -bearing and non -interest bearing demand deposits at
September 30, 2018, which are insured by the Federal Deposit Insurance Corporation 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. Cash on hand amounted to $1,500.
Note 3—Interfund receivables and payables
Interfund receivables and payables at September 30, 2018 consist of the following:
Court Related Fund
Fine & Forfeiture Fund
Agency Fund
Due From
Due To
Other
Other
Funds
Funds
$108,770
$ -
-
97,370
-
11,400
$108,770 $108,770
The amounts are due to the Fine & Forfeiture Fund and the Clerk's Agency Fund from the Court Related Fund,
as required by Florida Statutes.
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
Note 4—Fund balance presentation
The restrictions placed on Clerk Records Modernization fund balance are described as follows:
Public Records Modernization Trust — Florida Statute 28.24(12)(d) requires the collection of an additional
service charge to be paid to the Clerk to be used exclusively for equipment, maintenance of equipment,
personnel training, and technical assistance in modernizing the public records system of the Clerk's Office.
Public Records Court Technology Trust — Florida Statute 28.24(12)(e)(1) requires the collection of an
additional service charge to be paid to the Clerk to be used exclusively for the operation and support of an
integrated computer system for the judicial agencies and to support the operations and maintenance of the
state court system.
Records Modernization restricted fund balances are as follows:
Public Records Modernization Trust $ 959,668
Public Records Court Technology 1,304,071
Restricted Fund Balance $2,263,739
Note 5—Retirement plans
Florida Retirement Svstem
Plan description — The Clerk's 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.
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
Note 5—Retirement plans (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. Substantial changes were made to the Pension Plan during fiscal year
2011, affecting new members enrolled on or after July 1, 2011 by extending the vesting requirement to eight years
of credited service and increasing normal retirement to age 65 or 33 years of service regardless of age. Also, the
final average compensation for these members is based on the eight highest years of salary.
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.
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 0.06 percent of payroll and by forfeited benefits of plan
members.
10
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
Note 5—Retirement plans (continued)
The Clerk recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan, the HIS
Plan and the defined contribution plan, amounting to $325,796, $59,311 and $25,344, respectively, for the fiscal
year ended September 30, 2018. The Clerk's payments for the Pension Plan and the HIS Plan after June 30,
2018, the measurement date used to determine the net pension liability associated with the Pension Plan and HIS
Plan, amounted to $84,154 and $15,814, respectively. The Clerk 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.
Funding policy— All enrolled members of the FRS Pension Plan are required to contribute 3.0% 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, 2017 through June 30, 2018 and July 1, 2018 through September 30, 2018, respectively, were as
follows: regular- 7.92% and 8.26%; county elected officers- 45.50% and 48.70%; senior management- 22.71%
and 24.06%; and DROP participants- 13.26% and 14.03%. During the fiscal year ended September 30, 2018, the
Clerk contributed to the plan an amount equal to 9.50% of covered payroll.
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. That report may be viewed on the Florida Department of Management Services website located at
www.dms.my orida.com/workforce operations/retirement/publications.
Note 6—Other postemployment benefits plan (the "OPEB Plan"
In addition to the pension benefits described in Note 3, the Clerk offers to its employees a single -employer defined
benefit healthcare plan, which is administered by the Board. Florida Statute 112.0801 requires the County to
provide retirees and their eligible dependents with the option to participate in the OPEB Plan if the County provides
health insurance to its active employees and their eligible dependents. The OPEB Plan provides medical
coverage, prescription drug benefits, and life insurance to both active and eligible retired employees. The OPEB
Plan does not issue a publicly available financial report. No assets are accumulated in a trust that meets the
criteria as set forth in GASB Statement 75, accounting and financial reporting for postemployment benefits other
than pensions.
The Board may amend the OPEB Plan design, with changes to the benefits, premiums and/or levels of participant
contribution at any time. On at least an annual basis, in an open session, and prior to the annual enrollment
process, the Board approves the rates for the coming calendar year for the retiree and County contributions.
Eligibility for postemployment participation in the OPEB Plan is limited to full-time employees of the County, and
the Constitutional Officers. An employee who retires as an active participant in the OPEB Plan and was hired on
or after October 1, 2001 may continue to participate in the OPEB Plan by paying the monthly premium established
annually by the Board. An employee who retires as an active participant in the plan, was hired prior to October 1,
2001, has at least ten years of full-time service with the County, and meets the retirement criteria of the FRS but
is not eligible for Medicare, may maintain group health insurance benefits with Monroe County following
retirement, provided the retiring employee contributes the amounts shown in the table below.
11
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
Note 6—Other postemployment benefits plan (continued)
Contribution as Percentage of Annual Actuarial Rate
Plan
Year
Years of Service with Monroe County
25+
20-24
10-19
2018
HISM
17%
18%
2019
HIS
18%
26%
2020
HIS
20%
34%
2021
HIS
22%
42%
2022
HIS
25%
50%
HIS is the State of Florida's Health Insurance Subsidy plan that assists
retirees in paying the cost of health insurance as explained in Note 5.
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 based on the preceding table. Surviving spouses
and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are
met.
An employee who retires as an active participant in the plan, was hired prior to October 1, 2001, has at least ten
years of full-time service with the County, and meets the retirement criteria of the FRS and is eligible for Medicare
at the time of retirement or becomes eligible for Medicare following retirement, may maintain group health
insurance benefits with Monroe County following retirement, provided the retiring employee contributes the
Actuarial Rate for Medicare retirees as determined by the actuarial firm engaged by the County, less a $250 per
month County subsidy. Alternatively, retirees meeting these criteria may elect to leave the County health plan and
receive a $250 per month payment from the County, payable for the lifetime of the retiree.
The Board engages an actuarial firm on a biannual basis to determine the County's accrued net OPEB liability.
The Clerk has no responsibility to the OPEB Plan other than to make the periodic payments determined by the
Board, which are presented as expenditures when made and amounted to $282,240 for the year ended
September 30, 2018. Further information about the OPEB Plan is available in the County's CAFR which is
published on the Clerk's website at www.clerk-of-the-court.com.
Note 7—Risk management
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 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 Clerk 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.
12
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
Note 8—Lease commitments
The Clerk leases various office equipment under cancelable arrangements accounted for as operating leases.
Total lease expenditures were $44,308 for the year ended September 30, 2018. The following is a schedule of
minimum future rent obligations under non -cancelable leases with terms in excess of one year:
2019
$ 28,726
2020
6,921
2021
390
Total
$ 36,037
Note 9—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 Board'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.
13
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, 2018
Revenues:
Intergovernmental - Other
Intergovernmental - Board of County Commissioners
Charges for services
Interest income
Miscellaneous
Total revenues
Expenditures:
Current:
General government:
Clerk recording
Clerk information systems
Clerk finance
Internal audit
Non -court records management
Total expenditures
Excess of revenues over expenditures
Other financing (uses):
Transfer to Board of County Commissioners
Fund balance, beginning of year
Fund balance, end of year
General Fund
Variance
Original
Final
Positive
Budget
Budget
Actual
(Negative)
$ -
$ -
$ 6,804
$ 6,804
3,751,499
3,751,499
3,751,499
-
609,900
609,900
801,007
191,107
8,300
8,300
28,246
19,946
1,800
1,800
205
(1,595)
4,371,499
4,371,499
4,587,761
216,262
1,042,148
1,042,148
459,892
582,256
804,958
804,958
521,460
283,498
2,075,636
2,161,836
2,015,543
146,293
361,018
274,818
202,966
71,852
87,739
87,739
51,070
36,669
4,371,499
4,371,499
3,250,931
1,120,568
-
-
1,336,830
1,336,830
(1,336,830) (1,336,830)
14
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, 2018
Revenues:
Intergovernmental - Other
Intergovernmental - Board of County Commissioners
Charges for services
Fines and forfeitures
Interest income
Miscellaneous income
Total revenues
Expenditures:
Current:
Court related:
Clerk administration
Clerk records management
Clerk jury management
Clerk circuit court criminal
Clerk circuit court civil
Clerk court information systems
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):
Transfer to Board of County Commissioners
Transfer to Florida Department of Revenue
Fund balance, beginning of year
Fund balance, end of year
Special Revenue
Court Related Fund
Variance
Original Final Positive
Budget Budget Actual (Negative)
$ 1,061,477
$ 1,061,477
$ 1,347,180 $
285,703
1,194,135
1,194,135
1,194,135
-
890,924
890,924
1,038,052
147,128
1,423,221
1,423,221
1,356,413
(66,808)
7,500
7,500
19,817
12,317
2,200
2,200
4,875
2,675
4,579,457
4,579,457
4,960,472
381,015
997,337
988,437
171,729
816,708
72,560
123,810
103,196
20,614
163,796
163,796
151,215
12,581
625,669
681,969
674,410
7,559
548,202
538,202
499,900
38,302
286,960
244,610
134,603
110,007
168,014
130,014
117,967
12,047
176,194
186,194
174,420
11,774
148,668
140,668
123,407
17,261
513,032
573,032
557,436
15,596
198,399
188,099
164,705
23,394
680,626
620,626
551,191
69,435
4,579,457
4,579,457
3,424,179
1,155,278
-
-
1,536,293
1,536,293
(1,072,533) (1,072,533)
(463,760) (463,760)
15
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, 2018
Revenues:
Charges for services
Interest income
Total revenues
Expenditures:
Current:
Modernization trust
Clerk fines
Total expenditures
Excess of revenues (under) expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
Special Revenue
Records Modernization Fund
Variance
Original
Final
Positive
Budget
Budget
Actual
(Negative)
$ 281,648
$ 281,648
$ 289,416
$ 7,768
33,887
33,887
38,619
4,732
315,535
315,535
328,035
12,500
-
450,000
100,860
349,140
331,320
331,320
331,320
-
331, 320
781,320
432,180
349,140
(15,785)
(465,785)
(104,145)
361,640
(15,785)
(465,785)
(104,145)
361,640
2,367,884
2,367,884
2,367,884
-
$ 2,352,099
$ 1,902,099
$ 2,263,739 $
361,640
16
SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
YEAR ENDED SEPTEMBER 30, 2018
Balance
October 1, 2017
Balance
September 30,
Additions Deductions 2018
Assets:
Cash and cash equivalents
$
5,409,315
$
44,325,571
$
43,233,269
$
6,501,617
Due from other governmental agencies
19,881
80,220
25,814
74,287
Due from others
4,862
214,580
198,563
20,879
Total assets
$
5,434,058
$
44,620,371
$
43,457,646
$
6,596,783
Liabilities:
Due to other governmental agencies
$
746,633
$
37,090,294
$
35,670,689
$
2,166,238
Due to others
4,538,453
3,508,432
3,715,770
4,331,115
Due to Board of County Commissioners
148,972
88,030
148,972
88,030
Due to other funds
-
3,934,727
3,923,327
11,400
Total liabilities
$
5,434,058
$
44,621,483
$
43,458,758
$
6,596,783
17
SUPPLEMENTARY REPORTS
10Gr11r
wO
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 Kevin Madok
Clerk of the Circuit Court of Monroe County, Florida
We have audited, in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to the 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 Clerk of the Circuit Court (the "Clerk") as of and for
the year ended September 30, 2018, and the related notes to the financial statements, and have issued our
report thereon dated February 12, 2019 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 Clerk's 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 Clerk's internal control. Accordingly, we do not express an opinion on the
effectiveness of the Clerk's internal control.
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 of the Clerk's financial
statements 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 the 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 Clerk's financial statements are free from 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.
18
Purpose of this Report
The purpose of this report is 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 Clerk's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Clerk's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Orlando, Florida
February 12, 2019
19
Bekaerl
11000
Independent Auditor's Management Letter
To the Honorable Kevin Madok
Clerk of the Circuit Court of Monroe County, Florida
Report on the Financial Statements
We have audited the financial statements of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk"), as
of and for the year ended September 30, 2018 and have issued our report thereon dated February 12, 2019.
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 Reporting Requirements
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 Report of Independent Accountant on Compliance with Local Government
Investment Policies, Article V Requirements and Depository Requirements of Sections 218.415, 28.35, 28.36, and
61.181, Florida Statutes, regarding compliance requirements in accordance with Chapter 10.550, Rules of the
Auditor General. Disclosures in those reports, which are dated February 12, 2019, 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 this 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.
Financial 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.
Additional Matters
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.
Purpose of This Letter
The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of
the Auditor General. Accordingly, this management letter is not suitable for any other purpose.
Orlando, Florida
February 12, 2019
20
Bekaerl
11000
Report of Independent Accountant on Compliance
With Local Government Investment Policies, Article V Requirements
and Depository Requirements of Sections 218.415, 28.35, 28.36 and 61.181, Florida Statutes
To the Honorable Kevin Madok
Clerk of the Circuit Court of Monroe County, Florida
We have examined the Monroe County, Florida Clerk of the Circuit Court's (the "Clerk's") compliance with the
local government investment policy requirements of Section 218.415, Florida Statutes, Article V requirements of
Sections 28.35 and 28.36, Florida Statutes, requirements of Section 61.181, Florida Statutes, for the year ended
September 30, 2018. Management is responsible for the Clerk's compliance with those requirements. Our
responsibility is to express an opinion on the Clerk's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute
of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain
reasonable assurance about whether the Clerk complied, in all material respects, with the specified
requirements referenced above. An examination involves performing procedures to obtain evidence about
whether the Clerk complied with the specified requirements. The nature, timing and extent of the procedures
selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due
to fraud or error. We believe that the evidence obtained is sufficient and appropriate to provide a reasonable
basis for our opinion.
Our examination does not provide a legal determination on the Clerk's compliance with the specified
requirements.
In our opinion, the Clerk complied, in all material respects, with the local investment policy requirements of
Section 218.415, Florida Statutes, Article V requirements of Sections 28.35 and 28.36, Florida Statutes and
requirements of Section 61.181, Florida Statutes, during the year ended September 30, 2018.
The purpose of this report is to comply with the audit requirements of Section 218.415, Florida Statutes, Article
V requirements of Sections 28.35 and 28.36, Florida Statutes, requirements of Section 61.181, Florida Statutes,
and Rules of the Auditor General.
Orlando, Florida
February 12, 2019
21