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Fiscal Year 2010 MONROE COUNTY, FLORIDA SHERIFF Special-Purpose Financial Statements Year Ended September 30, 2010 MONROE COUNTY, FLORIDA SHERIFF Special-Purpose Financial Statements, Required Supplementary Information, Other Supplementary Information and Independent Auditors' Reports Year Ended September 30, 2010 Table of Contents Paqe Independent Auditors' Report.---------------------------------------------------------------------------------------------------- 2- 3 SPECIAL-PURPOSE FINANCIAL STATEMENTS Special-Purpose Balance Sheet-Governmental Funds--------------------------------------------------------- 4 Special-Purpose Statement of Revenues, Expenditures and Changes In Fund Balances- Governmental Funds 5 --------------------------------------------------------------------------- Special-Purpose Statement of Fiduciary Assets and Liabilities-Agency Funds----------------------- 6 Notes to Special-Purpose Financial Statements-------------------------------------------------------------------- 7 - 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.------------------------------------------ 16-20 OTHER SUPPLEMENTARY INFORMATION Special-Purpose Combining Statement of General Fund by Service Area------------------------------- 21 Non-Major Special Revenue Funds Description-------------------------------------------------------------------- 22 Special-Purpose Combining Balance Sheet— Non-Major Governmental Funds- Special Revenue Funds.--------------------------------------------------------------------------------------------------- 23 -25 Special-Purpose Combining Statement of Revenues, Expenditures and Changes in Fund Balances— Non-Major Governmental Funds—Special Revenue Funds---------------------- 26 -28 Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual— Non-Major Special Revenue Funds.---------------------------------- 29 -40 Agency Funds Description--------------------------------------------------------------------------------------------------- 41 Special-Purpose Combining Statement of Changes in Fiduciary Assets and Liabilities- AIIAgency Funds------------------------------------------------------------------------------------------------------------- 42 SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.---------------------------------------------------------- 43 -44 Independent Auditors' Management Letter---------------------------------------------------------------------------- 45-46 INDEPENDENT AUDITORS' REPORT To the Honorable Robert Peryam, Sheriff of Monroe County, Florida We have audited the accompanying special-purpose 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, 2010, which collectively comprise the Sheriffs special-purpose financial statements as listed in the table of contents. These special- purpose financial statements are the responsibility of the Sheriffs management. Our responsibility is to express opinions on these special-purpose 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 special-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the special- purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall special- purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. As discussed in Note 1, the accompanying special-purpose financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits, and are not intended to be a complete presentation of the financial position of Monroe County, Florida as of September 30, 2010, and the results of its operations in conformity with accounting principles generally accepted in the United States of America. In our opinion, the special-purpose 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, 2010, and the respective changes in financial position thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2010 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 and should be considered in assessing the results of our audit. 2 The budgetary comparison schedules listed in the table of contents as required supplementary information are not a required part of the special-purpose financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and we express no opinion on it. Our audit was conducted for the purpose of forming opinions on the special-purpose financial statements. The accompanying other financial information is presented for purposes of additional analysis and is not a required part of the special-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the special- purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the special-purpose financial statements taken as a whole. This report is intended solely for the information and use of the Sheriff's management and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. CHERRY, BEKAERT& HOLLAND, L.L.P. • " "\A Orlando, Florida December 21, 2010 3 SPECIAL-PURPOSE FINANCIAL STATEMENTS MONROE COUNTY,FLORIDA SHERIFF Special-Purpose Balance Sheet-Governmental Funds September 30,2010 Major Funds Non-Major Funds Shared HIDTA Asset Other General Trauma Star Radio Cx's Grants Grants Forfeiture Governmental Total Assets Cash and cash equivalents $ 4,933,817 $ 97,117 $ 55,058 $ 195,917 $ - $ 5,078,524 $ 4,908,982 $ 15,269,415 Due from Board of County Commissioners 9,868 - - - 361,689 - 103,678 475,235 Due from other funds 575,857 - - 2,416 - - 484,479 1,062,752 Due from other governmental units 42,813 - - 1,310,714 51,626 - 112,680 1,517,833 Due from others 7,397 13,329 93,071 113,797 Total assets $ 5,569,752 $ 97,117 $ 55,058 $ 1,522,376 $ 413,315 $ 5,078,524 $ 5,702,890 $ 18,439,032 Liabilities and Fund Balances Liabilities: Accounts payable $ 1,450,286 $ - $ - $ 862,046 $ - $ 64,760 $ 65,842 $ 2,442,934 Accrued wages and benefits payable 2,076,748 - - 250,751 - - - 2,327,499 Due to Board of County Commissioners 1,471,566 97,117 55,058 49,885 - - 110,330 1,783,956 Due to other governmental units 111,450 - - 310,437 - - 22,251 444,138 Due to other funds 459,702 - - 49,257 413,315 124,705 1,046,979 Deferred revenue 45,975 45,975 Total liabilities 5,569,752 97,117 55,058 1,522,376 413,315 64,760 369,103 8,091,481 Fund balances 5,013,764 5,333,787 10,347,551 Total liabilities and fund balances $ 5,569,752 $ 97,117 $ 55,058 $ 1,522,376 $ 413,315 $ 5,078,524 $ 5,702,890 $ 18,439,032 The notes to the special-purpose finanical statements 4 are an integral part of this statement. 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MONROE COUNTY, FLORIDA SHERIFF Notes to Special-Purpose Financial Statements Year Ended September 30, 2010 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 Sheriff's special-purpose financial statements do not purport to reflect the financial position or the results of operations of Monroe County, Florida (the "County") taken as a whole. Entity status for financial reporting purposes is governed by Statement No. 14 and 39 of the Governmental Accounting Standards Board (GASB). 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, 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 special-purpose financial statements are prepared in accordance with Chapter 10.550, Rules of the Auditor General, which requires the Sheriff to only present fund financial statements. In conformity with the Rules, the Sheriff has not presented the government-wide financial statements, related disclosures or management's discussion and analysis, which are required to present a complete presentation of its financial position and changes in financial position. 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. 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. 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 five Special Revenue Funds as major funds: Trauma Star, Radio Communications, HIDTA Grants, Grants, and Shared Asset Forfeiture. The Trauma Star fund accounts for the revenues and expenditures related to the function of air 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 various grants. 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. 7 MONROE COUNTY, FLORIDA SHERIFF Notes to Special-Purpose Financial Statements Year Ended September 30, 2010 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 and the State Forfeiture Fund revenues exceed expenditures is reflected as transfers out and as liabilities to the Board of County Commissioners. Budgetary requirements - 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 - 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 the Fund B Surplus Funds Trust Fund investment pool ("Fund B"). Florida PRIME is a 2a7-like fund stated at share price, which is substantially the same as fair value. Fund B is accounted for as a fluctuating Net Asset Value "NAW pool or as a 2a-7 like fund. 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$57,412 for September 30, 2010. 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 Sheriff's special-purpose 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. 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 special-purpose financial statements requires management to make use of estimates that affect reported amounts. Actual results could differ from estimates. Note 2 - Deposits and investments Cash and cash equivalents at September 30, 2010 consist of the following: Type Credit Quality Rating Fair Value Demand and time deposits N/A $ 16,091,789 SBA U n rated 153,650 $ 16,245,439 8 MONROE COUNTY, FLORIDA SHERIFF Notes to Special-Purpose Financial Statements Year Ended September 30, 2010 Note 2— Deposits and investments (continued) The Sheriff places its cash and cash equivalents on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation (FDIC) covers $250,000 for substantially all depository accounts. The Sheriff from time to time may have amounts on deposit in excess of the insured limits and the remaining balances are insured 100% 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. Florida Statutes and the Sheriff's 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 and federal agencies and instrumentalities. As of September 30, 2010, the Sheriff had $153,650 invested in the SBA, which was less than 1% of the Sheriff's total cash and cash equivalents. Of the $153,650 invested in the SBA, the Sheriff had $4,269 or 3% invested in Fund B and $149,381 or 97% invested in Florida PRIME. Florida PRIME is rated by Standard and Poors. The current rating is AAAm. Fund B is not rated by any nationally recognized rating agency. The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2010 is 52 days. Next interest rate reset days for floating rate securities are used in the calculation of the WAM. The weighted average life (based on expected future cash flows) of Fund B at September 30, 2010 is estimated at 7.49 years. However, because Fund B consists of restructured or defaulted securities, there is a considerable uncertainty regarding the weighted average life. The amount of $1,205,004 represents restricted cash in the 911 Wireless Fund. 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 E911 services, which may include next generation deployment. Note 3 - Capital assets A summary of changes in the Sheriff's capital assets, presented in the government-wide financial statements of the County, is as follows: Balance Balance 10/01/2009 Additions Deductions 09/30/2010 Buildings and improvements $ 2,665,532 $ 91,765 $ - $ 2,757,297 Equipment 34,412,445 2,435,099 2,547,992 34,299,552 Construction in process 14,890 - 14,890 - $ 37,092,867 $2,526,864 $2,562,882 $ 37,056,849 Accumulated depreciation $ 15,814,000 $2,725,877 $1,806,856 $ 16,733,021 9 MONROE COUNTY, FLORIDA SHERIFF Notes to Special-Purpose Financial Statements Year Ended September 30, 2010 Note 4 - Long-term debt The following is a summary of changes in the Sheriffs long-term debt for the year ended September 30, 2010, presented in the government-wide financial statements of the County: Compensated Absences Long-term debt, beginning of year $ 3,710,427 Additions 348,114 Reductions (6,073) Long-term debt, end of year $ 4,052,468 Note 5 - Retirement plan Plan description — The Sheriffs employees participate in the Florida Retirement System ("FRS"), administered by the Florida Department of Administration. Employees elect to participate in the defined benefit plan ("Pension Plan"), a cost sharing, multiple-employer, defined benefit retirement plan, or the defined contribution plan ("Investment Plan") under the FRS. As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida Legislature. Benefits are computed on the basis of age, average final compensation, and service credit. Regular class employees who retire at or after age 62 with 6 years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation for each year of credited service. Vested employees with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special risk class employees (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with 6 years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation for each year of credited service. Senior management service class employees who retire at or after age 62 with at least 6 years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation for each year of credited service. Elected Officers' class employees who retire at or after age 62 with at least 6 years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges and justices) of their final average compensation for each year of credited service. A post-employment health insurance subsidy is also provided to eligible retired employees through the FRS in accordance with Florida Statutes. 10 MONROE COUNTY, FLORIDA SHERIFF Notes to Special-Purpose Financial Statements Year Ended September 30, 2010 Note 5 - Retirement plan (continued) In addition to the above benefits, the FRS administers a Deferred Retirement Option Program ("DROP"). This program allows eligible employees to defer receipt of monthly retirement benefit payments while continuing employment with a Florida Retirement System employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the Florida Retirement System Trust Fund and accrue interest. For employees electing to participate in the Investment Plan rather than the Pension Plan, vesting occurs at one year of service. These participants receive a contribution of self-direction in an investment product with a third party administrator selected by the State Board of Administration. The State of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, PO Box 9000, Tallahassee, FL 32315-9000, or accessing their internet site at www.frs.state.fl.us. Funding policy - The FRS is noncontributory for members. Governmental employers are required to make contributions to the FRS based on statewide contribution rates. The contribution rates by job class through June 30, 2010 were as follows: regular 9.85%; special risk 20.92%; special risk administrative support 12.55%; county elected officers 16.53%; senior management 13.12% and DROP participants 10.91%. Effective July 1, 2010 the contribution rates by job class were as follows: regular 10.77%; special risk 23.25%; special risk administrative support 13.24%; county elected officers 18.64%; senior management 14.57%; and DROP participants 12.25%. The Sheriffs contributions made during the years ended September 30, 2010, 2009 and 2008 were $4,877,644, $4,850,567, and $5,004,708 respectively, which were equal to actuarially determined contribution requirements for each year. 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 a Hartford Life Insurance Company 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 class of employees are eligible to participate in the program on the first day of the 12-consecutive month period commencing on October 1. 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. 11 MONROE COUNTY, FLORIDA SHERIFF Notes to Special-Purpose Financial Statements Year Ended September 30, 2010 Note 5 - Retirement plan (continued) The Sheriff contributed $89,839 for the year ended September 30, 2010 and there were no employee contributions. Note 6—Other postemployment benefits (OPEB) 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 and prescription drug benefits 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 post employment 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 before 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 continue to participate in the Plan at a cost equal to the FRS Health Insurance Subsidy for ten years of service (currently $5 per month for each year of service credit at retirement or $50 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 equal to the FRS Health Insurance Subsidy. 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 biannual 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. Note 7 - 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 purchases commercial insurance and participates in the Florida Sheriff's Self-Insurance Fund which provides adequate coverage for all risks of loss except Workers' Compensation and Group Insurance. Settled claims have not exceeded the commercial insurance coverage in any of the last three years. 12 MONROE COUNTY, FLORIDA SHERIFF Notes to Special-Purpose Financial Statements Year Ended September 30, 2010 Note 7 - Risk management (continued) The Sheriff participates in the coverage provided by the Board of County Commissioners of Monroe County Workers' Compensation and Group Insurance internal service funds. Under these programs, Workers' Compensation provides $1,000,000 coverage per claim for regular employees. Workers' Compensation claims in excess of the self insured coverage are covered by an excess insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $100,000 self-insured retention, and building property damage is covered for the actual value of the buildings with a deductible between $100,000 and $250,000. Deductibles for windstorm and flood vary by location. Monroe County purchases commercial insurance for claims in excess of coverage provided by the funds. Settled claims have not exceeded this commercial coverage in any of the past three years. The Sheriff makes payments to the Workers' Compensation and Group Insurance Funds based on estimates of the amounts needed to pay prior and current year claims. Note 8 - Litigation The Sheriff is a party to various lawsuits and claims, which it is vigorously defending. Such matters arise out of the normal course of its operation, all of which are covered by insurance policies or by the Sheriff's participation in the Florida Sheriff's 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 Sheriff's financial position. Note 9 - 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, 2010 were $5,168,529. The following is a schedule by years of minimum future rentals under operating leases as of September 30, 2010: Year Ending September 30, 2011 $ 5,282,048 2012 4,961,995 2013 4,860,533 2014 4,287,663 2015-2017 1,551,539 Total $ 20,943,778 13 MONROE COUNTY, FLORIDA SHERIFF Notes to Special-Purpose Financial Statements Year Ended September 30, 2010 Note 10— Deferred revenues At September 30, 2010 the agency has deferred revenue in the Special Assignment Fund that represents monies collected to be used in the future for Impact Support. Amount deferred as of September 30, 2010 is $45,975. 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 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Investment income $ $ - $ 33,472 $ 33,472 Miscellaneous 5,730 221,952 216,222 Total revenues 5,730 255,424 249,694 Expenditures: Current: Personnel services 30,449,675 29,599,675 28,510,266 1,089,409 Operating expenses 9,423,688 9,738,688 9,649,253 89,435 Capital outlay 893,087 1,428,087 1,362,794 65,293 Aid to other governments/non-profits 107,800 107,800 - 107,800 Total expenditures 40,874,250 40,874,250 39,522,313 1,351,937 Excess of revenues over expenditures (40,874,250) (40,868,520) (39,266,889) 1,601,631 Other financing uses: Insurance proceeds - - 28,342 28,342 Transfer(to)/from Board of County Commissioners 40,874,250 40,851,635 39,414,178 (1,437,457) Transfer(to)/from other governments - - (102,534) (102,534) Transfer(to)/from others - (1,000) (1,000) Transfers(to)/from other funds - 16,885 (72,097) (88,982) Total other financing uses 40,874,250 40,868,520 39,266,889 (1,601,631) Excess of revenues over expenditures and other financing uses - - - Fund balances,beginning of year Fund balances,end of year $ $ $ $ 15 MONROE COUNTY,FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-TRAUMA STAR Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Expenditures: Current: Personnel services $ 478,319 $ 523,319 $ 512,074 $ 11,245 Operating expense 783,395 718,395 636,398 81,997 Capital outlay - 20,000 16,126 3,874 Total expenditures 1,261,714 1,261,714 1,164,598 97,116 Excess of revenues over expenditures (1,261,714) (1,261,714) (1,164,598) 97,116 Other financing sources: Transfer(to)/from Board of County Commissioners 1,261,714 1,261,714 1,164,598 (97,116) Total other financing sources 1,261,714 1,261,714 1,164,598 (97,116) Excess of revenues over expenditures and other financing sources - - - - Fund balances,beginning of year - - - - Fund balances,end of year $ - $ - $ - $ - 16 MONROE COUNTY,FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-RADIO COMMUNICATIONS Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Expenditures: Current: Personnel services $ 315,490 $ 265,490 $ 221,508 $ 43,982 Operating expense 108,877 108,877 102,551 6,326 Capital outlay - 50,000 45,250 4,750 Total expenditures 424,367 424,367 369,309 55,058 Excess of revenues over expenditures (424,367) (424,367) (369,309) 55,058 Other financing sources: Transfer(to)/from Board of County Commissioners 424,367 424,367 369,309 (55,058) Total other financing sources 424,367 424,367 369,309 (55,058) Excess of revenues over expenditures and other financing sources - - - - Fund balances,beginning of year - - - - Fund balances,end of year $ - $ - $ - $ - 17 MONROE COUNTY,FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-HIDTA Grants Fund Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other government units $ 21,975,000 $ 20,500,000 $ 20,309,489 $ (190,511) Total revenues 21,975,000 20,500,000 20,309,489 (190,511) Expenditures: Current: Personnel services 5,175,000 5,100,000 5,091,130 8,870 Operating expenses 15,800,000 14,800,000 14,644,107 155,893 Capital outlay 1,000,000 600,000 574,252 25,748 Total expenditures 21,975,000 20,500,000 20,309,489 190,511 Excess of expenditures over revenues - - - - 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 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other government units $ 249,910 $ 335,427 $ 327,274 $ (8,153) Investment income 7,500 - - Charges for services - - - Fines and forfeitures - - - - Total revenues 257,410 335,427 327,274 (8,153) Expenditures: Current: Personnel services 150,000 427,000 425,628 1,372 Operating expenses 127,410 136,000 135,438 562 Capital outlay 650,000 460,000 459,628 372 Aid to governments/non-profits 5,000 - - - Total expenditures 932,410 1,023,000 1,020,694 2,306 Excess of revenues over expenditures (675,000) (687,573) (693,420) (5,847) Other financing sources: Transfers(to)/from Board of County Commissioners 600,000 606,000 605,043 (957) Transfers(to)/from other funds 75,000 89,273 88,982 (291) Transfers(to)/from other governments - (7,700) (7,617) 83 Total other financing sources 675,000 687,573 686,408 (1,165) Excess of expenditures and other financing uses over revenues - - (7,012) (7,012) Fund balances,beginning of year 7,012 7,012 7,012 - Fund balances,end of year $ 7,012 $ 7,012 $ - $ (7,012) 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, 2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Investment income $ 200,000 $ 1,000 $ 226,689 $ (225,689) Total revenues 200,000 1,000 226,689 (225,689) Expenditures: Current: Personnel services 1,000 1,000 823 177 Operating expenses 1,000 1,000 - 1,000 Aid to other governments/non-profits 198,000 198,000 187,047 10,953 Total expenditures 200,000 200,000 187,870 12,130 Excess of revenues over expenditures - (199,000) 38,819 (237,819) Fund balances, beginning of year 4,974,945 4,974,945 4,974,945 - Fund balances,end of year $ 4,974,945 $ 4,775,945 $ 5,013,764 $ (237,819) 20 OTHER SUPPLEMENTARY INFORMATION N N V CO N O O o N In V O f CO I- m N V O r- N O V CO CO O O O V O V cc N N P- M O m O O P- ' M m CO CO V o O CO CO N 7 N O M N m V CO N m O N V O I- O N N N M V O oc O 7 oc ~ N O V V V V K3 K3 N N V O o P M N CO co I- m N O o V O I- V N O O I- V O V P- O oc o N M O ' 0 0 N ' i M m P- o � m O CO In N O G1 M N m O P V N I- N P- N N oc O O oc m o m 0 N M - M M M M K3 K3 CO O O O O N O N O O O O x N m O O O O V N 0 � M M M M O 'a QFfJ FfJ U_ V W o W W W W fC ' O M LQ LQ LQ L ' M co N o o V V V V m In (CO') o 0 0 0 N E -C L U U- ffl ffl X U a co o co rn rn rn rn o d o O o o co 0 ooco 0 0 0 0 L In CO Cl) Cl) M M V � � � �C. Q O p N N N N N 0 (0 ON 0 M OM EA K3 LL } LL E -a _ !L: E W V N N N N Z N N V o O 2 m o o r W W W W N U c U >' W (D � Y O O d va va z w z o d o o m P o N N C r- W CO V V LO V N O o O O L } O N o M V V M r- 04 V N L L O N N M N C O .a ' ( V LO LO ' W O ' LO U N Cl) 00 O 0 0 r- M M M M 0 2- U N Q n M N C VJ L � L CL N 0K U N K N G1 N d N i L C E L d N 7 V d >+ c H U o o c d 0 p O N i L6 7 G1 N -2 � i Im d O ad C w w c QG1 f 'A NN O i o L L L vO 07 C O N N VJ 7 N m C N C U H c° H E EEEE oQ o 0 0 0 O C N O w� CNU CN N j > C > p�O C. 0 41 c d a H E . w m U w aa�i C 2) > N p C N fl- M p ai c c c c O N p d c 2 d =3 a O U F- d d o co co co co H d a a e>i K U K s c H H H H K m c c W W O W LL LL 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. Off Duty Fund - This fund accounts for receipts, expenditures and related reimbursements for law enforcement services provided to other organizations. Teen Court Fund- This fund accounts for receipts and disbursements pertaining to a program designed to deter juveniles who are becoming involved in crime. Impact Support Fund - This fund accounts for receipts and disbursements relating to the administration of the South Florida Drug & Money Laundering Task Force. Federal Forfeiture Fund - This 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. 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 from state forfeitures received primarily from the South Florida Drug and Money Laundering Task Force. Airport Services Fund - This fund accounts for expenditures related to providing security at airports throughout the County. Contract Administrative Fund - This fund accounts for receipts of service fees collected for administering HIDTA, South Florida Law Enforcement Trust Fund, Impact Support and the NHAC Financial Unit. Expenditures relate to the costs of administering their activities. Commissary Fund - This fund accounts for receipts and disbursements of inmate telephone commissions, canteen revenues and other inmate programs. S. Florida Law Enforcement Trust Fund- This fund accounts for receipts and disbursements pertaining to South Florida Drug & Money Laundering Task Force. Inter-Agency Communications Fund — This fund accounts for revenues and expenditures allocated for radio communications. 911 Wireless/Wireless Enhancement Fund (E911) — This fund accounts for fees levied on each telephone access line in Monroe County for the enhancement of the 911 emergency telephone systems. 22 MONROE COUNTY,FLORIDA SHERIFF Special-Purpose Combining Balance Sheet-Non-Major Governmental Funds Special Revenue Funds September 30,2010 Impact Federal Off-Duty Teen Court Support Forfeiture Assets Cash and cash equivalents $ - $ - $ - $ 1,076,686 Due from Board of County Commissioners 577 - - - Due from other funds - 3,559 47,557 - Due from governmental units 44,330 5,839 - - Due from others 1,587 - - - Total assets $ 46,494 $ 9,398 $ 47,557 $ 1,076,686 Liabilities and Fund Balances Liabilities: Accounts payable $ - $ - $ - $ - Due to Board of County Commissioners - - 1,582 - Due to other governmental units - - - - Due to other funds 46,494 - - 16,685 Deferred revenues - - 45,975 - Totalliabilities 46,494 - 47,557 16,685 Fund balances - 9,398 - 1,060,001 Total liabilities and fund balances $ 46,494 $ 9,398 $ 47,557 $ 1,076,686 23 MONROE COUNTY,FLORIDA SHERIFF Special-Purpose Combining Balance Sheet-Non-Major Governmental Funds Special Revenue Funds September 30,2010 Law Enforcement State Airport Contract Trust Fund Forfeiture Services Administrative Commissary Assets Cash and cash equivalents $ 14,985 $ 38,046 $ - $ - $ 257,931 Due from Board of County Commissioners - - - - - Due from other funds - 82 68,222 338,845 12,543 Due from governmental units - - - 55,205 - Due from others - - - 1,290 34,572 Total assets $ 14,985 $ 38,128 $ 68,222 $ 395,340 $ 305,046 Liabilities and Fund Balances Liabilities: Accounts payable $ 2,062 $ 443 $ - $ - $ 42,937 Due to Board of County Commissioners 2,841 37,685 68,222 - - Due to other governmental units 10,000 - - - 8,174 Due to other funds 82 - - 1,290 17,354 Deferred revenues - - - - - Totalliabilities 14,985 38,128 68,222 1,290 68,465 Fund balances - - - 394,050 236,581 Total liabilities and fund balances $ 14,985 $ 38,128 $ 68,222 $ 395,340 $ 305,046 24 MONROE COUNTY,FLORIDA SHERIFF Special-Purpose Combining Balance Sheet-Non-Major Governmental Funds Special Revenue Funds September 30,2010 Total S.FL Law Nonmajor Enforcement Inter-Agency Special Revenue Trust Fund Communications E911 Funds Assets Cash and cash equivalents $ 698,281 $ 1,173,226 $ 1,649,827 $ 4,908,982 Due from Board of County Commissioners - 13,083 90,018 103,678 Due from other funds 13,671 - - 484,479 Due from governmental units - 7,306 - 112,680 Due from others - 55,622 - 93,071 Total assets $ 711,952 $ 1,249,237 $ 1,739,845 $ 5,702,890 Liabilities and Fund Balances Liabilities: Accounts payable $ 20,400 $ - $ - $ 65,842 Due to Board of County Commissioners - - - 110,330 Due to other governmental units 4,077 - - 22,251 Due to other funds - 23,906 18,894 124,705 Deferred revenues - - - 45,975 Total liabilities 24,477 23,906 18,894 369,103 Fund balances 687,475 1,225,331 1,720,951 5,333,787 Total liabilities and fund balances $ 711,952 $ 1,249,237 $ 1,739,845 $ 5,702,890 25 MONROE COUNTY,FLORIDA SHERIFF Special-Purpose Combining Statement of Revenues,Expenditures and Changes in Fund Balances Non-Major Governmental Funds Special Revenue Funds Year Ended September 30,2010 Impact Federal Off-Duty Teen Court Support Forfeiture Revenues: Intergovernmental-other government units $ 199,524 $ - $ 169,746 $ 36,022 Charges for services 31,276 70,414 - - Fines and forfeitures - - - Investment income 4,209 Miscellaneous Total revenues 230,800 70,414 169,746 40,231 Expenditures: Current: Personnel services 229,242 53,386 165,965 46,763 Operating expenses 259 7,630 3,781 84,538 Capital outlay 1,299 - - 13,955 Aid to other governments/non-profits 26,000 Total expenditures 230,800 61,016 169,746 171,256 Excess of revenues over (under)expenditures - 9,398 - (131,025) Other financing sources(uses): Transfers(to)/from other funds - Transfer(to)/from Board of County Commissioners Total other financing sources(uses) - Excess of revenues and other financing sources(uses)over(under)expenditures 9,398 (131,025) Fund balances,beginning ofyear - 1,191,026 Fund balances,end ofyear $ $ 9,398 $ $ 1,060,001 26 MONROE COUNTY,FLORIDA SHERIFF Special-Purpose Combining Statement of Revenues,Expenditures and Changes in Fund Balances Non-Major Governmental Funds Special Revenue Funds Year Ended September 30,2010 Law Enforcement State Airport Contract Trust Fund Forfeiture Services Administrative Commissary Revenues: Intergovernmental-other government units $ $ $ $ - $ - Chargesforservices 1,733,777 1,061,958 361,812 Fines and forfeitures 63,857 - - - Investment income 229 463 879 Miscellaneous income 62,277 - - 10,266 Total revenues 126,363 1,733,777 1,062,421 372,957 Expenditures: Current: Personnel services - 1,613,435 796,778 179,104 Operating expenses 37,509 89,402 136,072 139,323 Capital outlay 51,169 30,940 1,586 - Aid to other governments/non-profits 64,478 Total expenditures 64,478 88,678 1,733,777 934,436 318,427 Excess of revenues over(under) expenditures (64,478) 37,685 - 127,985 54,530 Other financing sources(uses): Transfers(to)/from other funds (19,884) - - 2,999 Transfer(to)/from Board of County Commissioners 84,362 (37,685) - Total other financing sources(uses) 64,478 (37,685) - 2,999 Excess of revenues and other financing sources(uses)over(under)expenditures - 127,985 57,529 Fund balances,beginning ofyear 266,065 179,052 Fund balances,end ofyear $ $ $ $ 394,050 $ 236,581 27 MONROE COUNTY,FLORIDA SHERIFF Special-Purpose Combining Statement of Revenues,Expenditures and Changes in Fund Balances Non-Major Governmental Funds Special Revenue Funds Year Ended September 30,2010 S.FL Law Total Nonmajor Enforcement Inter-Agency Special Revenue Trust Fund Communications E911 Funds Revenues: Intergovernmental-other government units $ 120,207 $ - $ $ 525,499 Charges for services - 63,695 3,322,932 Fines and forfeitures - - 63,857 Investment income 2,692 4,421 5,465 18,358 Miscellaneous income - 7,614 - 80,157 Total revenues 122,899 75,730 5,465 4,010,803 Expenditures: Current: Personnel services - 4,076 141,506 3,230,255 Operating expenses 156,421 253,800 139,061 1,047,796 Capital outlay 8,582 - (43,783) 63,748 Aid to other governments/non-profits 90,478 Total expenditures 165,003 257,876 236,784 4,432,277 Excess of revenues over(under) expenditures (42,104) (182,146) (231,319) (421,474) Other financing sources(uses): Transfers(to)/from other funds - - (16,885) Transfer(to)/from Board of County Commissioners 159,279 568,585 774,541 Total other financing sources(uses) 159,279 568,585 757,656 Excess of revenues and other financing sources(uses)over(under)expenditures (42,104) (22,867) 337,266 336,182 Fund balances,beginning ofyear 729,579 1,248,198 1,383,685 4,997,605 Fund balances,end ofyear $ 687,475 $ 1,225,331 $ 1,720,951 $ 5,333,787 28 MONROE COUNTY,FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Off Duty Fund Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other government units $ 244,000 $ 212,500 $ 199,524 $ (12,976) Charges for services - 23,000 31,276 8,276 Total revenues 244,000 235,500 230,800 (4,700) Expenditures: Current: Personnel services 244,000 233,911 229,242 4,669 Operating expense - 264 259 5 Capital outlay - 1,325 1,299 26 Total expenditures 244,000 235,500 230,800 4,700 Excess of revenues over(under)expenditures - - - - Fund balances,beginning of year - - - - Fund balances,end of year $ - $ - $ - $ - 29 MONROE COUNTY,FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Teen Court Fund Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 75,000 $ 72,000 $ 70,414 $ (1,586) Total revenues 75,000 72,000 70,414 (1,586) Expenditures: Current: Personnel services 90,000 55,000 53,386 1,614 Operating expense 11,626 8,000 7,630 370 Total expenditures 101,626 63,000 61,016 1,984 Excess of revenues over(under)expenditures (26,626) 9,000 9,398 398 Other financing sources: Transfers(to)/from other funds 26,626 - - - Total other financing sources 26,626 - - - Excess of revenues and other financing sources (uses)over(under)expenditures - 9,000 9,398 398 Fund balances,beginning of year - - - - Fund balances,end of year $ - $ 9,000 $ 9,398 $ 398 30 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual- Impact Support Fund Year Ended September 30, 2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other government units $ 185,000 $ 175,000 $ 169,746 $ (5,254) Total revenues 185,000 175,000 169,746 (5,254) Expenditures: Current: Personnel services 163,000 170,000 165,965 4,035 Operating expenses 22,000 5,000 3,781 1,219 Total expenditures 185,000 175,000 169,746 5,254 Excess of revenues over(under) expenditures - - - - Fund balances, beginning of year - - - - Fund balances,end of year $ - $ - $ - $ - 31 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Federal Forfeiture Fund Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other government units $ - $ - $ 36,022 $ 36,022 Investment income - - 4,209 4,209 Total revenues - - 40,231 40,231 Expenditures: Current: Personnel services 30,000 50,000 46,763 3,237 Operating expenses 40,000 86,000 84,538 1,462 Capital outlay 55,000 15,000 13,955 1,045 Aid to other governments 10,000 30,000 26,000 4,000 Total expenditures 135,000 181,000 171,256 9,744 Excess of revenues over(under)expenditures (135,000) (181,000) (131,025) 49,975 Fund balances,beginning of year 1,191,026 1,191,026 1,191,026 - Fund balances,end of year $ 1,056,026 $ 1,010,026 $ 1,060,001 $ 49,975 32 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Law Enforcement Trust Fund Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Expenditures: Current: Personnel services $ 45,000 $ - $ - $ - Operating expenses 10,000 - - - Aid to other governments 62,500 22,000 19,088 2,912 Aid to non-profits 55,000 47,000 45,390 1,610 Total expenditures 172,500 69,000 64,478 4,522 Excess of revenues over(under)expenditures (172,500) (69,000) (64,478) 4,522 Other financing sources Transfers(to)/from Board of County Commissioners 175,000 91,000 84,362 (6,638) Transfers(to)/from other funds (2,500) (22,000) (19,884) 2,116 Total other financing sources 172,500 69,000 64,478 (4,522) Excess of revenues and other financing sources (uses)over(under)expenditures - - - - Fund balances,beginning of year - - - - Fund balances,end of year $ - $ - $ - $ - 33 MONROE COUNTY,FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-State Forfeiture Fund Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Fines and forfeitures $ 67,700 $ 68,000 $ 63,857 $ (4,143) Investment income - 500 229 (271) Miscellaneous income - 63,000 62,277 (723) Total revenues 67,700 131,500 126,363 (5,137) Expenditures: Current: Operating expenses 16,950 39,000 37,509 1,491 Capital outlay 7,500 57,000 51,169 5,831 Total expenditures 24,450 96,000 88,678 7,322 Excess of revenues over(under) expenditures 43,250 35,500 37,685 2,185 Other financing uses: Transfer(to)/from Board of County Commissioners (43,250) (35,500) (37,685) (2,185) Total other financing uses (43,250) (35,500) (37,685) (2,185) Excess of revenues and other financing sources(uses) over(under)expenditures - - - - Fund balances,beginning of year - - - - Fund balances,end of year $ - $ - $ - $ - 34 MONROE COUNTY,FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Airport Services Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 1,773,962 $ 1,773,962 $ 1,733,777 $ (40,185) Total revenues 1,773,962 1,773,962 1,733,777 (40,185) Expenditures: Current: Personnel 1,663,962 1,646,962 1,613,435 33,527 Operating expenses 100,000 95,000 89,402 5,598 Capital outlay 10,000 32,000 30,940 1,060 Total expenditures 1,773,962 1,773,962 1,733,777 40,185 Excess of revenues over(under)expenditures - - - - Fund balances,beginning of year - - - - Fund balances,end of year $ - $ - $ - $ - 35 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Contract Administrative Fund Year Ended September 30, 2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 810,250 $ 1,070,000 $ 1,061,958 $ (8,042) Interest income - 600 463 (137) Total revenues 810,250 1,070,600 1,062,421 (8,179) Expenditures: Current: Personnel 580,000 800,000 796,778 3,222 Operating expenses 75,000 140,000 136,072 3,928 Capital outlay - 2,000 1,586 414 Total expenditures 655,000 942,000 934,436 7,564 Excess of revenues over(under) expenditures 155,250 128,600 127,985 (615) Fund balances, beginning of year 266,065 266,065 266,065 - Fund balances,end of year $ 421,315 $ 394,665 $ 394,050 $ (615) 36 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Commissary Fund Year Ended September 30, 2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 405,500 $ 362,000 $ 361,812 $ (188) Investment income 1,000 900 879 (21) Miscellaneous income 15,000 10,300 10,266 (34) Total revenues 421,500 373,200 372,957 (243) Expenditures: Current: Personnel expenses 215,000 182,000 179,104 2,896 Operating expenses 200,000 142,000 139,323 2,677 Capital outlay 375,000 - - - Total expenditures 790,000 324,000 318,427 5,573 Excess of revenues over(under) expenditures (368,500) 49,200 54,530 5,330 Other financing sources (uses) Transfers (to)/from other funds 2,500 3,000 2,999 (1) Total other financing sources (uses) 2,500 3,000 2,999 (1) Excess of revenues and other financing sources(uses)over(under)expenditures (366,000) 52,200 57,529 5,329 Fund balances, beginning of year 179,052 179,052 179,052 - Fund balances,end of year $ (186,948) $ 231,252 $ 236,581 $ 5,329 37 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-S. Florida Law Enforcement Trust Fund Year Ended September 30, 2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other government units $ - $ - $ 120,207 $ 120,207 Investment income - 2,692 2,692 Total revenues - - 122,899 122,899 Expenditures: Current: Operating expenses 550,000 175,000 156,421 18,579 Capital outlay 5,000 10,000 8,582 1,418 Aid to other governments/non-profits 25,000 - - - Total expenditures 580,000 185,000 165,003 19,997 Excess of revenues over(under) expenditures (580,000) (185,000) (42,104) 142,896 Fund balances, beginning of year 729,579 729,579 729,579 - Fund balances,end of year $ 149,579 $ 544,579 $ 687,475 $ 142,896 38 MONROE COUNTY,FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Inter-Agency Communications Fund Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ - $ 63,000 $ 63,695 $ 695 Investment income 1,000 4,000 4,421 421 Miscellaneous income - 7,000 7,614 614 Total revenues 1,000 74,000 75,730 1,730 Expenditures: Current: Personnel services 35,000 4,500 4,076 424 Operating expense 275,000 254,000 253,800 200 Capital outlay 145,000 - - - Total expenditures 455,000 258,500 257,876 624 Excess of revenues over(under) expenditures (454,000) (184,500) (182,146) 2,354 Other financing sources: Transfer(to)/from Board of County Commissioners 258,500 160,000 159,279 (721) Total other financing sources 258,500 160,000 159,279 (721) Excess of revenues and other financing sources(uses) over(under)expenditures (195,500) (24,500) (22,867) 1,633 Fund balances,beginning of year 1,248,198 1,248,198 1,248,198 - Fund balances,end of year $ 1,052,698 $ 1,223,698 $ 1,225,331 $ 1,633 39 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-E911 Year Ended September 30,2010 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Investment income $ 5,000 $ 5,000 $ 5,465 $ 465 Total revenues 5,000 5,000 5,465 465 Expenditures: Current: Personnel services 115,000 143,000 141,506 1,494 Operating expense 350,000 143,000 139,061 3,939 Capital outlay 118,000 10,000 (43,783) 53,783 Aid to other governments/non-profits 5,000 - - - Total expenditures 588,000 296,000 236,784 59,216 Excess of revenues over(under) expenditures (583,000) (291,000) (231,319) 59,681 Other financing sources: Transfers(to)/from Board of County Commissioners 568,000 569,000 568,585 (415) Total other financing sources 568,000 569,000 568,585 (415) Excess of revenues and other financing sources (uses)over(under)expenditures (15,000) 278,000 337,266 59,266 Fund balances,beginning of year 1,383,685 1,383,685 1,383,685 - Fund balances,end of year $ 1,368,685 $ 1,661,685 $ 1,720,951 $ 59,266 40 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. 41 MONROE COUNTY, FLORIDA SHERIFF Special-Purpose Combining Statement of Changes in Fiduciary Assets and Liabilities All Agency Funds Year Ended September 30,2010 October 1, September 30, 2009 Additions Deductions 2010 Civil Process Assets Cash and cash equivalent: $ 13,502 $ 172,054 $ 174,361 $ 11,195 Due from Other Funds 37 - 37 - Total assets $ 13,539 $ 172,054 $ 174,398 $ 11,195 Liabilities Accounts payable $ 300 $ 77,312 $ 76,947 $ 665 Due to Board of County Commissioner: 11,600 106,617 108,777 9,440 Due to other funds - 1,306 1,248 58 Due to individuals 1,639 63,817 64,424 1,032 Total liabilities $ 13,539 $ 249,052 $ 251,396 $ 11,195 Bonds Assets Cash and cash equivalents $ 648,396 $ 821,936 $ 560,413 $ 909,919 Total assets $ 648,396 $ 821,936 $ 560,413 $ 909,919 Liabilities Due to individuals $ 648,396 $ 821,936 $ 560,413 $ 909,919 Total liabilities $ 648,396 $ 821,936 $ 560,413 $ 909,919 Inmate Assets Cash and cash equivalents $ 51,100 $ 783,090 $ 779,280 $ 54,910 Due from Others(TouchPay; - 1,958 - 1,958 Total assets $ 51,100 $ 785,048 $ 779,280 $ 56,868 Liabilities Accounts payable $ 6,535 $ 236,067 $ 222,637 $ 19,965 Due to Other Govt's 376 349 508 217 Due to Bond Fund - 27,465 27,465 - Due to General Func 7,868 83,325 88,039 3,154 Due to Commissary func 6,134 65,006 58,579 12,561 Due to individuals 30,187 370,878 380,094 20,971 Total liabilities Total All Agency Funds Assets Cash and cash equivalents $ 712,998 $ 1,777,080 $ 1,514,054 $ 976,024 Due from Others - 1,958 - 1,958 Due from Other Funds 37 - 37 - Total assets $ 713,035 $ 1,779,038 $ 1,514,091 $ 977,982 Liabilities Accounts payable $ 6,835 $ 313,379 $ 299,584 $ 20,630 Due to Board of County Commissioner: 11,600 106,617 108,777 9,440 Due to other funds 14,002 177,102 175,331 15,773 Due to other govt's 376 349 508 217 Due to individuals 680,222 1,256,631 1,004,931 931,922 Total liabilities $ 713,035 $ 1,854,078 $ 1,589,131 $ 977,982 42 SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF SPECIAL-PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Robert Peryam, Sheriff of Monroe County, Florida: We have audited the special-purpose 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, 2010, which collectively comprise the Sheriff's special- purpose financial statements, and have issued our report thereon dated December 21, 2010 for the purpose of compliance with Section 218.39(2), Florida Statutes and Chapter 10.550 Rules of the Auditor General-Local Governmental Entity Audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the Sheriff's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the special-purpose financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Sheriff's 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 of the Sheriff's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 43 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriffs special-purpose 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 special-purpose financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, others within the organization and applicable state agencies, and is not intended to be and should not be used by anyone other than these specified parties. CHERRY, BEKAERT& HOLLAND, L.L.P. • " "\A Orlando, Florida December 21, 2010 44 INDEPENDENT AUDITORS' MANAGEMENT LETTER To the Honorable Robert Peryam, Sheriff of Monroe County, Florida: We have audited the special-purpose 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, 2010, and have issued our report thereon dated December 21, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in Accordance with Government Auditing Standards. Disclosures in this report, dated December 21, 2010, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits, which govern the conduct of local government entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors' report. Section 10.554(1)(i)l, 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 report. No recommendations were made in the preceding annual financial audit report. Section 10.554(1)(i)2, Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.145, Florida Statutes, regarding the investment of public funds. In connection with our audit of the special-purpose financial statements of the Sheriff, nothing came to our attention that could cause us to believe that the Sheriff was in noncompliance with Section 218.415 regarding the investment of public funds. Section 10.554(1)(i)3, 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)4, Rules of the Auditor General, requires that we address violations of provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the special-purpose financial statements that is less than material but more than inconsequential. In connection with our audit, we did not have any such findings. 45 Section 10.554(1)(i)5, Rules of the Auditor General, provides that the auditor may, based on professional judgment, report the following matters that have an inconsequential effect on financial statements, considering both quantitative and qualitative factors: (1) violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and (2) deficiencies in internal control that are not significant deficiencies. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)6, Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the special-purpose 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. Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Sheriff's management and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. CHERRY, BEKAERT& HOLLAND, L.L.P. Orlando, Florida December 21, 2010 46