Fiscal Year 2005 MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Financial Statements
For the Year Ended
September 30, 2005
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Table of Contents
Page
Independent Auditors' Report..................................................................................... ............... 2 - 3
BASIC FINANCIAL STATEMENTS
Balance Sheet— Governmental Funds 4
Statement of Revenues, Expenditures and Changes
In Fund Balances- Governmental Funds 5
Notes to Financial Statements 6 - 9
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures - Budget and Actual -
General Fund 10
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..................................................11 - 12
Independent Auditors' Management Letter................................. .......................................13 - 14
Management Letter Comments........................................................................................... 15
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INDEPENDENT AUDITORS' REPORT
To the Honorable Harry L. Sawyer, Jr.,
Supervisor of Elections of Monroe County, Florida:
We have audited the accompanying financial statements of each major fund of the Monroe
County, Florida Supervisor of Elections (the "Supervisor of Elections") as of and for the year
ended September 30, 2005, which collectively comprise the Supervisor of Election's basic
financial statements as listed in the table of contents. These financial statements are the
responsibility of the Supervisor of Elections' management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
As discussed in Note 1, the accompanying financial statements were prepared for the purpose
of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General-Local Governmental Entity Audits, and are not intended to be a complete presentation
of the financial position of Monroe County, Florida, and the results of its operations and the
cash flows of its proprietary funds in conformity with accounting principles generally accepted in
the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of each of the major funds of the Supervisor of Elections as of September
30, 2005, 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
January 19, 2006 on our consideration of the Supervisor of Elections' internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe
the scope of the 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 cODlp8[isOD schedule on page 10 is not a required part of the basic fiORDCj8]
statements but is supplementary information required b the Governmental /\ccDVDhOg
Standards Board. We have applied certain limited p[OCedV[gS' which consisted primarily of
inquiries of management regarding the nno{hode of nneogunernant and presentation of the
required supplementary information. Hoxxever, we did not audit the information and we express
no opinion on it.
This report is intended solely for the information and use of management and applicable state
agoncieg, and is not intended to be and should not be used by anyone other than these
specified parties.
�
West Palm Beach, Florida
January 1S. 2OO8
3
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTION
Balance Sheet
Governmental Funds
Year Ended September 30, 2005
Major Funds
General Special
Fund Revenue Totals
ASSET
Cash s equivalents 43,543 64,699 113,247
Due from special revenue fund 13,455 't 3,455
Prepaid expenses 9,260 9,260
Total assets 71,263 64„699 135,962
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 3 „369 _ 32,369
Accrued wages and benefits payable 30,436 30,436
e to Board of County Commissioners 7, - 7,958
Due to general fund - 13,455 13,455
Total liabilities 71,263 13,455 64,71
Fund Balances 51,244 51,244
Total liabilities and fund balances 71,263 64,699 135,962
e notes tot e financial statements
are an integral part of this statement..
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Statement of Revenues, Expenditures and Changes In Fund Balances
Governmental Funds
Year Ended September 30, 2005
Major Funds
General Special
Fund Revenue Totals
Revenues:
Charges for services $ 9-73,666 $ - 973,666
Intergovernmental - 65,621 65,621
Investment income 479 77 556
Miscellaneous 7,081 - 7,081
Total revenues 981,226 65,698 1,046,924
Expenditures:
Current:
Personnel services 677,983 - 677,983
Operating expenditures 290,886 13,455 304,341
Capital outlay 4,398 999 5,397
Total expenditures 973,267 14,454 987,721
Excess of revenues over expenditures 7,959 51,244 59,203
Other financing uses
Transfer to Board of County Commissioners 7,2591 - 7,959)
Fund balance, beginning of year - -
Fund balance, end of year $ $ 51,244 $ 51,244
The notes to the financial statements 5
are an integral part of this statement.
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September,30, 2005
Note I ®Summary of significant accounting policies
Reporting entity — The Monroe County, Florida Supervisor of Elections (the uSupervisor of
Elections") is a separately elected county official established pursuant tot Constitution of the
State of Florida. The Supervisor of Elections' 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 Statements No. 14 and No. 39 of
the Governmental Accounting Standards Board (GASB). Although the Supervisor of Elections'
office is operationally autonomous, it does not hold sufficient corporate powers of its own to be
considered a legally separate entity for financial reporting purposes. Therefore, the Supervisor,
of Elections is reported as part of the primary government of the County.
Description of Funds — The accounting records are organized for reporting purposes on the
basis of two governmental funds.
General Fund — The General Fund is a governmental fund used to account for all
revenues and expenditures applicable to the general operations of the Supervisor of
Elections that are not required legally or by accounting principles generally accepted in
the United States of America to be accounted for in another fund.
Special Revenue Fund — The Special Revenue Fund is used to account for the
proceeds of specific revenue sources that are legally restricted or committed to
expenditures for specific purposes, The Special Revenue Fund proceeds are to be
used exclusively for voter education and the purchase of accessible voting systems.
Measurement focus, basis of accounting, and Financial statement presentation ® The
Supervisor of Elections' financial statements are prepared forte purpose of complying with
Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local
Governmental Entity Audits, is require the Supervisor of Elections to only present fund
financial statements, The General Fund and the Special Revenue Fund 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 government considers
revenues to be available if they are collected within 60 days oft end oft current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, expenditures related to compensated absences and claims and
judgments are recorded only when payment is due.
The extent to is General Fund revenues exceed General Fund expenditures is reflected as
transfers out and as liabilities tote Board of County Commissioners.
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MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2005
Note I —Summary of significant accounting policies (continued)
Budgetary requirements — Expenditures are controlled by appropriations in accordance with
the budget requirements set forth in the Florida Statutes. The budgeted revenues and
expenditures in the accompanying financial statements reflect all amendments approved by the
Monroe County, Florida Board of County Commissioners (the "Board"), The General Fund
budget is prepared on a basis consistent with accounting principles generally accepted in the
United States of America. The Special Revenue Fund does not have a legally adopted budget,
Cash and Cash Equivalents—The Supervisor of Elections' cash and cash equivalents consist
of various demand deposit accounts.
Capital assets—Tangible personal property used in the Supervisor of Elections operations are
recorded as expenditures in the General Fund at the time assets are received and a liability is
incurred. Purchased assets are capitalized at historical cost in the government-wide financial
statements of the County. In addition, the County provides office space used by the Supervisor
of Elections at no charge.
Compensated Absences — The Supervisor of Elections permits employees to accumulate
earned but unused vacation and sick pay benefits when certain conditions are met. Related!
long-term obligations, amounting to $42,356 at September 30, 2005, are included the
government-wide fiinanciall statements of the County.
Use of Estimates -The preparation of financial statements requires management to make use
of estimates that affect reported amounts. Actual results could differ from estimates.
Note 2—Deposits and investments
As of September 30, 2005, the Supervisor of Elections has demand deposits of$113,247,
Florida Statutes and the Supervisor's investment policy authorize investments in certificates of
deposit, savings accounts, the Local Government Surplus Funds Trust Fund administered by
the Florida State Board of Administration, money market funds, direct obligations of the U.S.
Treasury, and federal agencies and instrumentalities.
Note 3— Retirement system
Plan description — The Supervisor of Elections' employees participate in the Florida
Retirement System ("FRS ), administered by the Florida Department of Administration,,
Employees elect participation in either the defined benefit plan ("Pension Plan"), a multiple-
employer cost-sharing 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,
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MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2005
Note 3— Retirement system (continued)
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 oft 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 serv{ce. 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% 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 1.6% 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 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% (3,33% for judges and justices) of their final
average compensation for each year of credited service.. A post-employment health insurance
subsidy is also provided to eligible retired employees through the FRS in accordance with
Florida Statutes.
In addition to the above benefits, the FRS administers a Deferred Retirement Option Program
("DROP"). This program allows eligible employees to defer receipt of monthly retirement
benefit payments it continuing employment with a FRS employer for a period not to exceed
60 months after electing to participate,, Deferred monthly benefits are held in the FRS Trust
Fund and accrue interest,
For those employees 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.
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplernentary information fort FRS, The latest available report
may be obtained by writing to the State of Florida Division of Retirement, Department of
Management Services, 2639 North Monroe Street, Building C, Tallahassee, Florida 32299-1560
or accessing it internet site at www,frs.state..fl.us.
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MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2005
Note 3— Retirement system (continued)
Funding policy — The FRS is noncontributory for members, Governmental employers are
required to make contributions to the FRS based on statewide contribution rates. The
contribution rates by job class at September 30, 2005 were as follows- regular 7,83%; special
risk 18.53%; special risk administrative support 9,92%; county elected officers 15,23%; senior
management 10,45%, and DROP participants 9.33%. During the fiscal year ended September
30, 2005, the Supervisor of Elections contributed tote plan an amount equal to 7.1% of
covered payrofl. Supervisor of Elections contributions to the FRS for the fiscal years ending
September30, 2003 through 2005 were $35,792, $44,819, and $48,114 respectively, is
were equal tote required,contributions for each fiscal year, The Supervisor of Elections has
historically contributed amounts equal to required contributions and, therefore, does not have a
pension asset or liability as determined in accordance with GASB Statement No. 27.
Note 4— Risk management
The Supervisor of Elections 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 Supervisor of Elections participates in the coverage provided by the Board for
Worker's, Compensation, Group Insurance, and is Management internal service funds.
Under these programs, Worker"s Compensation provides $1,000,000 coverage per claim for
regular employees. 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
forte actual value oft buildings with a deductible between $100,000 and $250,000.
Deductibles for windstorm and to 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
Supervisor of Elections makes payments tot Worker's Compensation, Group Insurance and
Risk Management Funds based on estimates of the amounts needed to pay prior and current
year claims.
Note 5— Litigation
The Supervisor of Elections is a party from time to time in various lawsuits and other claims
incidental to the ordinary course of its operation, some of is 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 Supervisor of Elections financial position.
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REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Schedule of Revenues and Expenditures
Budget and Actual - General Fund
Year Ended September,30, 2005
General! Fund
Variance with
Final Budget
Original Final Positive
Budget Budget— Actual (Negative)
Revenues
Charges for services $ 973,666 $ 973,666 $ 973,666 $ -
Investment income - - 479 479
Miscellaneous - 7,081 7,081
Total revenues 973,666 973,666 981,226 7,560
Expenditures
Current:
Personnel services 713,016 713,016 677,983 35,033
Operating expenditures 250,650 250,650 290,886 (40,236)
Capital outlay 10,000 10,000 4,398 5,602
Total expenditures 973,666 973,666 973,267 399
Excess of revenues
over expenditures - - 7,959 7,959
Other financing uses
Transfer to Board of
County ommr ssioners (7,959) 7,9 591.
Excess of revenues over
expenditures and other
financing uses $ -
10
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
Im
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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 STANDARD
Tote Honorable Harry I.... Sawyer, Jr,
Supervisor of Elections of Monroe County, Florida:
e have audited the financial statements of eachmajor fund of the Monroe County, Florida
Supervisor of Elections (the "Supervisor of Elections") of and for the yearended September
0, 2005, which collectively comprise the Supervisor of Elections' basic financial statements,
and have issued our report thereon dated January 1 , 2006 for the purpose of compliance i
Section 2 5.2g(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 Audlth7g Standards, issued by the Comptroller General of the
United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Supervisor of Elections' internal control
over financial reporting in order to determine our auditing procedures for the purpose o
expressing our opinion on the financial statements and not to provide assurance on the internal
control over financial reporting. Our consideration of the internal control over financial reporting
would not necessarily disclose all matters in the internal control over financial reporting that
might be material weaknesses„ A material weakness is a reportable condition in which the
design or operation of one or more of the internal control components does not reduce to
relatively low level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their assigned functions.
e noted no matters involving the internal control over financial reporting and its operations
that we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Supervisor of Elections' financiall
statements are freeof material misstatement„ we performed tests of the Supervisor o
Elections' compliance with certain provisions of law, regulations„ contracts, and grant
agreements, noncompliance with whichcou!d have a directand 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,
11
We noted other matters involving the internal control over financial reporting, which we have
communicated to management of the Supervisor of Elections in a separate letter dated January
19, 2006.
This report is intended solely for the information and use of management, the State of Florida
Office of the Auditor General, and applicable state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
West Palm Beach, Florida
January 19, 2006
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CERTIFIED PUBUC
INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Furry L. Sawyer, Jr.,
Supervisor of Elections of Monroe County, Florida:
e have audited the financial statements of each major fund of the Monroe County, Florida
Supervisor of Elections (the "Supervisor of Elections"), as of and for the year ended September
30, 2005, which collectively comprise the Supervisor of Elections' basic financial statements,
and have issued our report thereon dated January 19, 2006 forte purpose of compliance with
Section 13„29(2), Florida Statutes, and Chapter 10.550, Rules of the auditor General-Local
Governmental Entity Audits.
e 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, We have issued
our Independent auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed i
Accordance with o errrrne/7i' Auditing Standards, Disclosures in this report, which is dated
January 19, 2006, should be considered in conjunction with this management letter,
Additionally, our audit was conducted in accordance it Chapter 10.550, Rules of the auditor
General„ Those rules (Section 10a554(1)( )1) require that we address in the management
letter, if not already addressed in the auditors' report on internal controls over financial
statement reporting and on compliance and other matters, whether or not corrective actions
have been taken to address significant findings and recommendations made in the preceding
annual financial audit report. There were no recommendations in the preceding year's annual
financial audit report.
The Rules of the auditor General (Section 10m554(1)(h)2) state that a management letter shall
have a statement as to whether or not the Supervisor of Elections complied with Section
213e41 , Florida Statutes, regarding the investment of public funds, In connection with our audit
of the financial statements of the Supervisor of Elections, the results of our tests did not indicate
that the Supervisor of,Elections was in noncompliance with Section 218.415 regarding the
investment of public funds.
The Rules of the auditor General (Section 10w554(1)(h)3) require disclosure in the management
letter any recommendations to improve the Supervisor of Elections financial management,
accounting procedures, and internal controls, Our recommendations for 2005 arein the
attached schedule labeled appendix A— Management Letter Comments.
The Rules oft e auditor General (Section 10a554(1)( )4) require disclosure in the management
letter of the following matters if not already addressed in the auditors' reports on internal
controls, compliance and other matters. (1) violations of laws, rules, regulations, and contractual
provisions that have occurred, or are likely to have occurred; (2) improper or illegal
1
expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required
disclosures from the financial statements); (4) failures to properly record financial transactions;
and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or
that come to the attention of, the auditor. There were no such matters noted.
The Rules of the Auditor General (Section 10.554(1)(h)5) also require that the name or official
title and legal authority for the primary government and each component unit of the reporting
entity be disclosed in the management letter, unless disclosed in the notes to the financial
statements. The Supervisor of Elections is a separately elected county official established
pursuant to the Constitution of the State of Florida. There are no component units related to the
Supervisor of Elections.
This management letter is intended solely for the information and use of management, the State
of Florida Office of the Auditor General, and applicable state agencies, and is not intended to be
and should not be used by anyone other than these specified parties.
West Palm Beach, Florida
January 19, 2006
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MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Appendix A--Management Letter Comments
Year Ended September 30, 2005
Expenditures
Observation: It was noted during our testing of internal controls that expenditures were not
being approved as required by the Supervisor of Elections polices and procedures. During our
testing we noted that none of the audit slips attached to invoices had been approved by either
the Supervisor or the Assistant Supervisor. This is an important control in the Supervisor's
expenditure cycle.
Recommendation: All audit slips should be approved by either the Supervisor or the Assistant
Supervisor before payment is made.
Management Response: It is our policy that the audit slip will be signed by either the Supervisor
or the Assistant Supervisor of Elections for authorization of payment. At the time a check is
being authorized, the person signing the check will verify that the audit slip has been signed.
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