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Fiscal Year 2015MONROE COUNTY, FLORIDA SHERIFF FINANCIAL STATEMENTS As of and for the Year Ended September 30, 2015 And Reports of Independent Auditor `LLP � Cherry6ekaert CAAs & Advisors MONROE COUNTY, FLORIDA SHERIFF TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR 1-2 ------------------------------------------------------------------------------------------ FINANCIAL STATEMENTS Balance Sheet - Governmental Funds 3 ------------------------------------------------------------------------------------------------------ Statement of Revenues, Expenditures and Changes In Fund Balances - Governmental Funds 4 ----------------------------------------------------------------------------------------------- Statement of Fiduciary Assets and Liabilities - Agency Funds------------------------------------------------------------------ 5 Notes to Financial Statements 6-14 ------------------------------------------------------------------------------------------------------------ REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund ------------------------------------------------------------------------------------- 15 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual — Major Special Revenue Funds -------------------------------------------------------16-22 OTHER SUPPLEMENTARY INFORMATION Combining Statement of General, Trauma Star and Radio Communications Funds by Service Area ............................................................................................. 23 Non -Major Special Revenue Funds Description------------------------------------------------------------------------------------ 24 Combining Balance Sheet — Non -Major Governmental Funds - Special Revenue Funds---------------------------------------------------------------------------------------------------------------25-27 Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Non -Major Governmental Funds — Special Revenue Funds ----------------------------------- 28-30 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — Non -Major Special Revenue Funds -----------------------------------------------31-36 Agency Funds Description------------------------------------------------------------------------------------------------------------------ 37 Combining Statement of Changes in Fiduciary Assets and Liabilities - AIIAgency Funds----------------------------------------------------------------------------------------------------------------------------- 38 SUPPLEMENTARY REPORTS Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ---------------------------------------------------------------------------------------------------- 39-40 Independent Auditor's Management Letter ---------------------------------------------------------------------------------------- 41-42 Report of Independent Accountant on Compliance with Local Government Investment Policies 43 -------------------------------------------------------------------------------------------------------- `� Cherry Bekaert... CPAs & Advisors Report of Independent Auditor To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Sheriff (the "Sheriff') as of and for the year ended September 30, 2015, and the related notes to the financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Sheriffs preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Sheriffs internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Sheriff as of September 30, 2015, and the respective changes in financial position thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each fund of Monroe County, Florida that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2015, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Required Supplementary Information as listed in the table of contents be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff's basic financial statements. The other supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. The other supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with accounting standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 21, 2016 on our consideration of the Sheriffs internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriffs internal control over financial reporting and compliance. 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The Sheriffs financial statements do not purport to reflect the financial position or the results of operations of Monroe County, Florida (the "County") taken as a whole. The financial statements of the Sheriff have been prepared in accordance with accounting principles and reporting guidelines established by the Governmental Accounting Standards Board ("GASB"). Entity status for financial reporting purposes is governed by Statement No. 14, as amended. Although the Sheriff's 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 financial statements are prepared for the purpose of complying with Section 218.39(2), Florida Statutes and Chapter 10.550, Rules of the Auditor General (the "Rules"), which requires the Sheriff to only present fund financial statements. The General Fund and Special Revenue Funds are governmental funds that use the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. Description of funds - The Sheriff reports the General Fund and Special Revenue Funds as governmental funds and Agency Funds as a fiduciary fund type. The General Fund is used to account for all revenues and expenditures applicable to the general operations of the Sheriff. The Special Revenue Funds account for the proceeds and uses of specific revenue sources that are legally restricted or committed to expenditures for a specific purpose. Agency Funds are used to account for assets held by the Sheriff as agent. Agency funds are custodial in nature and do not involve measurement of results of operations. The Sheriff reports the General Fund and the following seven Special Revenue Funds as major funds: Trauma Star, Radio Communications, HIDTA Grants, Grants, Federal Forfeiture, Shared Asset Forfeiture and E-911. The Trauma Star fund accounts for the revenues and expenditures related to the function of air and ambulance transports. The Radio Communications fund accounts for the revenues and expenditures related to radio communication functions county -wide to include the majority of federal, state and local entities. The HIDTA Grants Fund accounts for the revenues and expenditures related to the ONDCP grants. The Grants Fund accounts for receipts and disbursements related to other various local, state and federal grants. The Federal Forfeiture Fund accounts for revenues from the U.S. Departments of Justice and Treasury. Expenditures are made in accordance with the guidelines issued by these agencies. The Shared Asset Forfeiture Fund accumulates stipulated transfers from the Federal Forfeiture Fund and its investment income is used to fund awards to non-profit organizations, as determined by an advisory board. The E-911 Fund accounts for fees levied on each telephone access line in Monroe County for the enhancement of the 911 emergency telephone systems. MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 Note 1—Summary of significant accounting policies (continued) Transfers — The Sheriff transfers funds to administer certain Special Revenue Fund programs. In addition, the extent to which General Fund, Trauma Star, Radio Communications and the State Forfeiture Fund revenues exceed expenditures is reflected as transfers out and as liabilities to the Board of County Commissioners. Fund balance presentation — In accordance with GASB Statement No. 54, the fund balances of the governmental funds are classified as restricted or committed. This classification includes amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors or the laws or regulations of other governments. Budgetary requirements — General fund expenditures are controlled by appropriations in accordance with the budget requirements set forth in the Florida Statutes. Budgets are administered for all funds and are prepared on a basis consistent with accounting principles generally accepted in the United States of America. Cash and cash equivalents and investments - Highly liquid investments with maturities of 90 days or less when purchased are considered cash equivalents. Included are investments in the State Board of Administration Local Surplus Funds Investment Pool Trust Fund ("SBA"), which consists of the Florida PRIME investment pool. Florida PRIME is a 2a7-like fund stated at share price, which is substantially the same as fair value. 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 $294,867 at September 30, 2015. Capital assets - Capital assets are recorded as expenditures in the General Fund or the Special Revenue Funds at the time of purchase and are capitalized at historical cost in the government -wide financial statements of the County. Gifts or contributions and seized property are recorded first in the Sheriffs financial statements as well as in the government -wide financial statements at fair market value at the time received. In addition, the Board of County Commissioners provides at no cost the office space and certain other expenditure items used in the Sheriffs operations. It is the policy of the Sheriff to capitalize all assets costing more than $1,000 with an estimated useful life of two or more years. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives Years Buildings and infrastructure 10-50 Machinery and equipment 5-10 Compensated absences - The Sheriff permits employees to accumulate earned but unused vacation and sick pay benefits. The Sheriff is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation is accrued in the government -wide financial statements of the County. Use of estimates - The preparation of financial statements requires management to make use of estimates that affect reported amounts. Actual results could differ from estimates. MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 Note 2—Deposits and investments Cash and cash equivalents and investments at September 30, 2015 consist of the following: Type Credit Quality Rating Demand and time deposits N/A SBA Unrated Fair Value $ 14,048,743 155,677 Municipal Bonds 4,748,497 $ 18,952,917 Deposits - Cash and cash equivalents consist of demand deposits insured by the Federal Deposit Insurance Corporation (FDIC) or covered by the State of Florida collateral pool, a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. Investments - Florida Statutes and the 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, rated or unrated bonds, notes or instruments, securities of or interests in any investment company or investment trust, commercial paper and Municipal Securities. As of September 30, 2015, the Sheriff had $155,677 invested in the SBA and $4,748,497 in Municipal Bonds, which was 35% of the Sheriff's total cash and cash equivalents. Of the $155,677 invested in the SBA, 100% is invested in Florida PRIME. The Municipal Bonds are rated by Standard and Poor's from AA- through AAA and the ratings on the municipal bonds from Moody's are rated from AA2 through AAA. Florida PRIME is rated by Standard and Poor's. The current rating is AAAm. The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2015 is 29 days. Next interest rate reset days for floating rate securities are used in the calculation of the WAM. The amount of $1,327,093 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 E-911 services, which may include next generation deployment. MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 Note 3—Interfund receivables and payables Interfund receivables and payables at September 30, 2015 consist of the following: Due From Other Funds General $ 210,378 H I DTA 725 Grants - Federal forfeiture E-911 - Other governmental 1,244,996 Agency Note 4—Capital assets Due to Other Funds $ 697,240 573,846 60,830 705 34,701 72,266 16,511 $ 1,456,099 $ 1,456,099 A summary of changes in the Sheriffs capital assets, presented in the government -wide financial statements of the County, is as follows: Balance Balance 10/01/2014 Additions Deductions 09/30/2015 Buildings and improvements $ 2,794,772 $ 2,912 $ - $ 2,797,684 Equipment 40,554,579 2,686,104 483,243 42,757,440 $ 43,349,351 $ 2,689,016 $ 483,243 $ 45,555,124 Accumulated depreciation $ 22,454,941 $ 3,128,552 $ 405,851 $ 25,177,642 Note 5—Long-term debt The Sheriff permits employees to accumulate earned but unused vacation and sick pay benefits. The Sheriff is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation for compensated absences is accrued in the government -wide financial statements of the County. A summary of activity for the Sheriffs compensated absences obligation is as follows: Long-term debt, beginning of year Additions Reductions Long-term debt, end of year Compensated Absences $ 6,841,772 3,545,794 (3,209,372) $ 7,178,194 E MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 Note 6—Fund balances In the governmental fund financial statements, fund balance is composed of two classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. The governmental fund types classify fund balances as follows: Restricted Fund Balance - This classification includes revenue sources that are restricted to specific purposes externally imposed by creditors or imposed by law. Shared Asset Forfeiture Fund is restricted upon Ordinance 030-2000 which specifies use must be for law enforcement crime prevention, drug and alcohol abuse prevention and treatment, mental and physical health of minors and adults, and cultural, artistic, educational, recreational and sports programs for Monroe County youth. Federal Forfeiture Fund is restricted for law enforcement purposes based upon the Federal Justice and Treasury Guide to Equitable Sharing which outlines the specific uses of these funds. E-911 Fund is restricted based upon the E-911 costs allowable by State Statute [F.S. 365]. Teen Court is restricted by State Statute [F.S. 938.19]. Commissary Fund is restricted for Inmate and Farm as outlined by State Statute [F.S. 951.23(9)]. Inter -Agency Communications Fund is restricted by State Statute [318.21(9)]. Committed Fund Balance - Portion of fund balance that can only be used for specific purpose imposed by the Sheriff (highest level of decision -making authority). Any changes or removal of specific purposes requires action by the Sheriff. Contract Administrative Fund is committed for the administration of contracts between the Sheriff and third parties. Note 7—Retirement plan Plan description — The Sheriff's employees participate in the Florida Retirement System (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan") alternative to the FRS Pension Plan, which is administered by the State Board of Administration. As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida Legislature. 10 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 Note 7—Retirement plan (continued) Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers' class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Special Risk Administrative Support class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with six years of credited service, or with 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life equal to 3% of their final average compensation based on the five highest years of salary for each year of credited service. Substantial changes were made to the Pension Plan during fiscal year 2011 affecting members enrolled on or after July 1, 2011 by extending the vesting requirement for Regular, Senior Management Service, Elected Officers' and Special Risk Administrative Support class members to eight years of credited service and increasing normal retirement to age 65 with at least eight years of credited service or 33 years of service regardless of age. The vesting requirement for Special Risk class members was extended to eight years of credited service and increasing normal retirement to age 60 with at least eight years of credited service or 30 years of service regardless of age or age 57 with 30 years of combined Special Risk Class service and military service. Also, the final average compensation of these members will be based on the eight highest years of salary. A post -employment health insurance subsidy is also provided to eligible retired members through the FRS in accordance with Florida Statutes. Funding policy - Effective July 1, 2012, all enrolled members of the FRS other than Deferred Retirement Option Program (DROP) participants are required to contribute 3% of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates. The employer contribution rates by job class for the periods from October 1, 2014 through June 30, 2015 and July 1, 2015 through September 30, 2015, respectively, were as follows: regular, 7.37% and 7.26%; special risk, 19.82% and 22.04%; special risk administrative support, 42.07% and 32.95%; county elected officers, 43.24% and 42.27%; senior management, 21.14% and 21.43%; and DROP participants, 12.28% and 12.88%. During the fiscal year ended September 30, 2015, the Sheriff contributed to the Plan an amount equal to 18.60% of covered payroll. The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Eligible retirees and beneficiaries receive a monthly health insurance subsidy payment of $5 for each year of creditable service, with a minimum payment of $30 and a maximum payment of $150 per month. The HIS Plan is funded by required contributions from FRS participating employees as set forth by the Florida Legislature, based on a percentage of gross compensation for all active FRS members. 11 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 Note 7—Retirement plan (continued) In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP). This program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants. For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occurs at one year of service. These participants receive a contribution for self -direction in an investment product with a third party administrator selected by the State Board of Administration. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. The Sheriff recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan, the HIS Plan and the investment plan, amounting to $3,765,449, $473,953 and $802,287 respectively, for the fiscal year ended September 30, 2015. The Sheriffs payments for the Pension Plan and the HIS Plan after June 30, 2015, the measurement date used to determine the net pension liability associated with the Pension Plan and HIS Plan, amounted to $1,103,352 and $161,395, respectively. The Sheriff is not legally required to and does not accumulate expendable available resources to liquidate the retirement obligation related to its employees. Accordingly, the net pension liability and associated deferred outflows and deferred inflows are presented on the government -wide financial statements of the County, following requirements of GASB Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68, effective October 1, 2014. The State of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the website www.dms.myflorida.com/workforce—operations/retirement/publications. Monroe County Sheriff's office offers 457 Deferred Compensation Programs to all employees of the agency. Employees may participate in the plan through payroll deductions and the plan is funded by Mass Mutual Financial Group and AIG Valic group variable annuity contract. Contributions are invested at the employee's direction through the options available under the program. Employees are fully vested at time of enrollment. The Monroe County Sheriffs Office has no liability beyond the payment of bi-weekly payroll contributions. Monroe County Sheriffs office also offers a profit-sharing pension plan known as the 401(a) Discretionary Contribution Pension Plan. Only full-time employees of the Sheriffs office classified as Telecommunications Officer, Telecommunications Supervisor, or Telecommunications Director are covered under the pension program established. Effective July 20, 2009, new hired employees will be exempt from the Plan. Those class of employees are eligible to participate in the program on the first day of the 12-consecutive month period commencing on October 1. 12 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 Note 7—Retirement plan (continued) The plan allows the agency to contribute ongoing non -elective contributions to each eligible employee's account. The routine amount contributed to each employees account is the variance between FRS's special risk retirement rate and the rate given to the FRS class -group that the Dispatcher's fall into. The Sheriff contributed $16,756 for the year ended September 30, 2015 and there were no employee contributions. Note 8—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, prescription drug benefits, and life insurance to both active and eligible retired employees. The Plan does not issue a publicly available financial report. The BOCC may amend the plan design, with changes to the benefits, premiums and/or levels of participant contribution at any time. In an open session, on at least an annual basis and prior to the annual enrollment process, the BOCC approves the rates for the coming calendar year for the retiree and County contributions. Eligibility for postemployment participation in the Plan is limited to full-time employees of the County, and the Constitutional Officers. Employees who retire as an active participant in the Plan and were hired on or after October 1, 2001 may continue to participate in the Plan by paying the monthly premium established annually by the BOCC. Employees who retire as an active participant in the plan, were hired prior to October 1, 2001, have at least ten years of full-time service with the County, and meet the retirement criteria of the Florida Retirement System (FRS), may maintain their group health insurance benefits with Monroe County following their retirement provided they contribute a premium of $5 per month for each year of creditable service with the FRS at time of retirement with Monroe County and will pay at a minimum $50 per month up to the maximum of $150 per month. Retirees who have met the requirements for early retirement, have not achieved age 60 and whose age and years of service do not equal 70 (rule of 70) must pay the standard monthly premium until the age criteria or the rule of 70 is met. At that time, the retiree's cost of participation will be $5 for each year of creditable service with the FRS at time of retirement with Monroe County and will pay at a minimum $50 per month up to the maximum of $150 per month. Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are met. The BOCC engages an actuarial firm on a 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. 13 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2015 Note 9—Risk management The Sheriff is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Sheriff participates in the coverage provided by the Board for Workers' Compensation, Group Insurance, and Risk Management Internal Service Funds. Under these programs, Workers' Compensation provides $500,000 coverage per claim for regular employees. Workers' Compensation claims in excess of the self -insured coverage are covered by an excess insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $200,000 self -insured retention, and building property damage is covered for the actual value of the building with a deductible of $50,000. Deductibles for windstorm and flood vary by location. Monroe County purchases commercial insurance for claims in excess of coverage provided by the funds and for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years. The Sheriff makes payments to the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. Note 10—Litigation 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 Sheriffs Self -Insurance Fund. While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on the Sheriffs financial position. Note 11—Lease commitments Operating leases - The Sheriff leases office space, equipment and vehicles under operating lease agreements. These lease agreements include options to extend the leases for additional terms as well as cancellation provisions. Total lease payments made during the fiscal year ended September 30, 2015 were $5,262,522. The following is a schedule by years of minimum future rentals under operating leases as of September 30, 2015: Year Ending September 30, 2016 $ 4,949,567 2017 4,106,217 2018 4,075,425 2019 4,145,746 2020 3,898,269 2021-2025 17,673,018 Total $ 38,848,242 For those leases that are increased annually by the Consumer Price Index (CPI) and the lease agreement does not state a minimum or maximum rate for the remainder of the lease term, the same known lease expense is used for the remainder of the lease term in the future rental schedule above. Note 12—Grants The Sheriff is the recipient of grants that are subject to special compliance requirements and audits by the grantor agencies that may result in disallowed expense amounts. These amounts constitute a contingent liability of the Sheriff. The Sheriff does not believe any contingent liabilities to be material to the financial statements. 14 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGETAND ACTUAL- GENERAL FUND YEAR ENDED SEPTEMBER 30, 2015 Revenues: Intergovernmental - BOCC Investment income Miscellaneous income Total revenues Expenditures: Current: Personnel services Operating expenses Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Insurance proceeds Transfer (to)/from Board of County Commissioners Transfer (to)/from other governments Transfers (to)/from other funds Total other financing sources (uses) Excess of revenues over expenditures and otherfinancing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 44,875,425 $ 44,325,425 $ 44,537,255 $ 211,830 - - 53,154 53,154 - 247,087 247,087 44,875,425 44,325,425 44,837,496 512,071 33,889,153 32,689,153 32,112,853 576,300 9,946,901 9,366,901 8,772,567 594,334 919,371 2,019,371 1,949,057 70,314 44,755,425 44,075,425 42,834,477 1,240,948 120,000 250,000 2,003,019 1,753,019 - - 4,650 4,650 (1,530,768) (1,530,768) (362,579) (362,579) (120,000) (250,000) (114,322) 135,678 (120,000) (250,000) (2,003,019) (1,753,019) 15 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - TRAUMA STAR YEAR ENDED SEPTEMBER 30, 2015 Revenues: Intergovernmental - BOCC Total revenues Expenditures: Current: Personnel services Operating expense Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfer (to)/from Board of County Commissioners Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 1,614,110 $ 2,164,110 $ 2,164,110 $ 1,614,110 2,164,110 2,164,110 - 505,340 555,340 539,089 16,251 1,093,770 1,593, 770 1,423,122 170,648 15,000 15,000 - 15,000 1,614,110 2,164,110 1,962,211 201,899 - - 201,899 201,899 (201,899) (201,899) (201,899) (201,899) 16 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - RADIO COMMUNICATIONS YEAR ENDED SEPTEMBER 30, 2015 Revenues: Intergovernmental - BOCC Total revenues Expenditures: Current: Personnel services Operating expense Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfer (to)/from Board of County Commissioners Transfer (to)/from other governments Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 362,380 $ 362,380 $ 362,380 $ 362,380 362,380 362,380 - 151,352 161,352 158,012 3,340 203,028 175,028 98,175 76,853 8,000 20,000 18,448 1,552 362,380 356,380 274,635 81,745 - 6,000 87,745 81,745 (82,901) (82,901) (6,000) (4,844) 1,156 (6,000) (87,745) (81,745) 17 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - HIDTA GRANTS FUND YEAR ENDED SEPTEMBER 30, 2015 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental - other government units $ 20,025,000 $ 20,500,000 $ 19,976,270 $ (523,730) Total revenues 20,025,000 20,500,000 19,976,270 (523,730) Expenditures: Current: Personnel services 4,500,000 4,100,000 4,086,199 13,801 Operating expenses 14,875,000 16,000,000 15,491,641 508,359 Capital outlay 650,000 400,000 398,430 1,570 Total expenditures 20,025,000 20,500,000 19,976,270 523,730 Excess of revenues over (under) expenditures - - - - Other financing sources: Transfer (to)/from other governments Total other financing sources Excess of revenues and other financing sources over expenditures Fund balances, beginning of year Fund balances, end of year $ $ $ $ 18 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GRANTS FUND YEAR ENDED SEPTEMBER 30, 2015 Revenues: Intergovernmental - BOCC Intergovernmental - other government units Total revenues Expenditures: Current: Personnel services Operating expenses Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources: Transfers (to)/from other funds Total other financing sources Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 530,000 $ 50,000 $ 32,185 $ (17,815) 450,000 450,000 390,855 (59,145) 980,000 500,000 423,040 (76,960) 545,000 450,000 443,796 6,204 120,000 50,000 44,524 5,476 315,000 - - - 980,000 500,000 488,320 11,680 - - (65,280) (65,280) 109,443 109,443 109,443 109,443 44.163 44.163 (44,163) (44,163) (44,163) - $ (44,163) $ (44,163) $ - $ 44,163 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, 2015 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Investment income $ 113,000 $ 80,000 $ 75,466 $ 4,534 Total revenues 113,000 80,000 75,466 4,534 Expenditures: Current: Personnel services 2,200 1,000 144 856 Operating expenses 1,100 500 431 69 Aid to other governments/non-profits 148,900 129,500 127,470 2,030 Total expenditures 152,200 131,000 128,045 2,955 Excess of revenues over (under) expenditures (39,200) (51,000) (52,579) 1,579 Fund balances, beginning of year 5,126,187 5,126,187 5,126,187 - Fund balances, end of year $ 5,086,987 $ 5,075,187 $ 5,073,608 $ 1,579 20 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - FEDERAL FORFEITURE FUND YEAR ENDED SEPTEMBER 30, 2015 Revenues: Intergovernmental - Other government units Investment income Total revenues Expenditures: Current: Personnel services Operating expenses Capital expenses Aid to other governments Total expenditures Excess of revenues over (under) expenditures Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ $ $ 2,475,992 $ 2,475,992 20,452 20,452 2,496,444 2,496,444 65,000 45,000 42,902 2,098 20,000 5,000 4,857 143 30,000 - - - 500,000 - - 615,000 50,000 47,759 2,241 (615,000) (50,000) 2,448,685 2,498,685 2,104,154 2,104,154 2,104,154 - $ 1,489,154 $ 2,054,154 $ 4,552,839 $ 2,498,685 21 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - E-911 YEAR ENDED SEPTEMBER 30, 2015 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental - BOCC $ 480,000 $ 480,000 $ 458,151 $ (21,849) Investment income 20,000 20,000 10,325 (9,675) Total revenues 500,000 500,000 468,476 (31,524) Expenditures: Current: Personnel services 105,000 110,000 107,329 2,671 Operating expense 130,000 180,000 174,369 5,631 Capital outlay 5,000 50,000 48,315 1,685 Total expenditures 240,000 340,000 330,013 9,987 Excess of revenues over (under) expenditures 260,000 160,000 138,463 (21,537) Other financing sources: Transfers (to)/from Board of County Commissioners Transfers (to)/from other governments (15,762) (15,762) Total other financing sources (15,762) (15,762) Excess of revenues over expenditures and other financing sources (uses) 260,000 160,000 122,701 (37,299) Fund balances, beginning of year 1,936,944 1,936,944 1,936,944 Fund balances, end of year $ 2,196,944 $ 2,096,944 $ 2,059,645 $ (37,299) 22 OTHER SUPPLEMENTARY INFORMATION LL LU u W = Lu N 0 u _ c oc H 0 c LL `u Z Z Ou U W 0 L Z a O Q �O V r O o d) Cl)M I- CM _ O Lo N M O � V V Cfl O O o o O_ O_ Um M M K E E O U O O V) V CD V CD N E N N N F Efl LD V r CD o co N O V M m V M +� i W o N co ID V V Cfl c0 V W O O o O co co r v W co N M co Cfl � co V co V N L(i L(i o CD CD co co O u R C C = I 69 C7 Lo Lo C o O o) L _ Efl 'O O O CD CD O E co CD co CD N N � � fA Lo CD O co (DD O) O o M CD O) M r N O O) CD r O) co N O) O N N O Lo N co N Ln CO Ln Ln V coV O V CD r co co W 't D a)W N O) N O) co O) O N co co CND O Lo V O N co r [- LO CD LO co LO O N N O) r V r d N c0 M M n D V N_ L( V C M M a O L( N c0 c N O LC( O) N D V c0 C o) r a N M V c0 c V c0 V O D V O) C co), �p c O O O O LV( O) V C` Lo O a M O W M N M 0 CD N N CD CD 0 V M CD V n r V N (D O) c0 M N N V LO O V V O) c0 r N V r W CO F W O N O N Ln CD r N CD r Ln M V O N V LO CO O CD N 0 n 0 N CD M r co V m c0 V CD N r CD Cfl Cfl Cfl Cfl Cfl Cfl Cfl to N C O_ to to E to E o (D o C O- >, rn Qr. E X ` O W N W (D C) C N O O C C (Dto O m w O U O (D- m E N O W N > m L L O o) O > W m o C > C N / ° O O` O m C O m o C rn o N � Y -6 C t°/1 o E E E CO) O O O m� �_ C -° Q N o E(D o o rn o- o > m o Q o 0 0 m > n m C .� ci X N N L .� - (D (D C C � N f/1 � .• .. O .. N O U C O mo N p L_ (6 m 0 C o o- m o o ° a O C) F (D L m m m F (D ° o 0 > o_ O F F F m � W W O W Li Li co N MONROE COUNTY, FLORIDA SHERIFF NON -MAJOR SPECIAL REVENUE FUNDS DESCRIPTION The purpose of each non -major special revenue fund in the combining balance sheet and combining statement of revenues, expenditures and changes in fund balances is described below. Teen Court Fund - This fund accounts for receipts and disbursements pertaining to a program designed to deter juveniles who are becoming involved in crime. Law Enforcement Trust Fund - This fund accounts for expenditures to non-profit organizations to help deter drug use and juvenile delinquency. State Fine and Forfeiture (State Forfeiture) - This fund accounts for the proceeds received primarily from seizures and forfeitures. Contract Administrative Fund - This fund accounts for the administration of contracts between the Sheriff and third parties. Commissary Fund - This fund accounts for receipts and disbursements of inmate telephone commissions, canteen revenues and other inmate programs. Inter -Agency Communications Fund — This fund accounts for revenues and expenditures allocated for radio communications. 24 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2015 Law Enforcement Teen Court Trust Fund ASSETS Cash and cash equivalents $ - $ 23 Due from Board of County Commissioners - - Due from other funds 51,132 - Due from governmental units 9,034 - Due from others - - Total assets $ 60,166 $ 23 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - Due to Board of County Commissioners - 8 Due to other governmental units - - Due to other funds - 15 Due to others - - Total liabilities - 23 Deferred Inflows of Resources: Unavailable revenues - - Fund balances, restricted Teen court program 60,166 - Inter -agency communication program - - Inmate welfare program - - Farm program - - Fund balances, committed Contract administration - - Total fund balances 60,166 - Total liabilities, deferred inflows of resources and fund balances $ 60,166 $ 23 25 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2015 State Contract Forfeiture Administrative Commissary ASSETS Cash and cash equivalents $ 28,081 $ - $ 561,159 Due from Board of County Commissioners - 565 - Due from other funds 15 1,187,626 5,023 Due from governmental units - 106,516 - Due from others - 629 54,982 Total assets $ 28,096 $ 1,295,336 $ 621,164 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - $ 74,477 Due to Board of County Commissioners 28,096 171,360 - Due to other governmental units - 2,020 - Due to other funds - 46,172 15,880 Due to others - - 150 Total liabilities 28,096 219,552 90,507 Deferred Inflows of Resources: Unavailable revenues - - - Fund balances, restricted Teen court program - - - Inter -agency communication program - - - Inmate welfare program - - 483,107 Farm program - - 47,550 Fund balances, committed Contract administration - 1,075,784 - Total fund balances - 1,075,784 530,657 Total liabilities, deferred inflows of resources and fund balances $ 28,096 $ 1,295,336 $ 621,164 26 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET - NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2015 ASSETS Cash and cash equivalents Due from Board of County Commissioners Due from other funds Due from governmental units Due from others Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to Board of County Commissioners Due to other governmental units Due to other funds Due to others Total liabilities Deferred Inflows of Resources: Unavailable revenues Fund balances, restricted Teen court program Inter -agency communication program Inmate welfare program Farm program Fund balances, committed Contract administration Total fund balances Total liabilities, deferred inflows of resources and fund balances Total Nonmajor Inter -Agency Special Revenue Communications Funds $ 355,823 $ 945,086 35,388 35,953 1,200 1,244,996 8,314 123,864 26,254 81,865 $ 426,979 $ 2,431,764 $ - $ 74,477 - 199,464 - 2,020 10,199 72,266 - 150 10,199 348,377 - 60,166 416,780 416,780 - 483,107 - 47,550 - 1,075,784 416,780 2,083,387 $ 426,979 $ 2,431,764 27 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2015 Law Enforcement Teen Court Trust Fund Revenues: Intergovernmental - BOCC $ $ 42,477 Intergovernmental - other government units - Charges for services 61,288 Fines and forfeitures - Investment income 15 Miscellaneous - - Total revenues 61,288 42,492 Expenditures: Current: Personnel services 43,287 - Operating expenses 4,641 3,492 Capital outlay - - Aid to other governments/non-profits - 39,000 Total expenditures 47,928 42,492 Excess of revenues over (under) expenditures 13,360 - Other financing sources (uses): Transfers (to)/from other funds - Transfer (to)/from Board of County Commissioners Transfer (to)/from other governments Total other financing sources (uses) - Excess of revenues over expenditures and other financing sources (uses) 13,360 Fund balances, beginning of year 46,806 Fund balances, end of year $ 60,166 $ 28 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2015 Revenues: Intergovernmental - BOCC Intergovernmental - other government units Charges for services Fines and forfeitures Investment income Miscellaneous income Total revenues Expenditures: Current: Personnel services Operating expenses Capital outlay Aid to other governments/non-profits Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers (to)/from other funds Transfer (to)/from Board of County Commissioners Transfer (to)/from other governments Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year State Contract $ $ 6,200 $ 351,866 3,278,422 446,646 42,390 - - 153 2,345 3,162 - - 21,201 42,543 3,638,833 471,009 - 3,217,803 160,872 14,447 218,597 200,417 - 58,522 216,244 28,096 143,911 (106,524) 4,879 (28,096) - (163,397) (28,096) (158,518) (14,607) (106,524) 1,090,391 637,181 $ $ 1,075,784 $ 530,657 29 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2015 Revenues: Intergovernmental - BOCC Intergovernmental - other government units Charges for services Fines and forfeitures Investment income Miscellaneous income Total revenues Expenditures: Current: Personnel services Operating expenses Capital outlay Aid to other governments/non-profits Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers (to)/from other funds Transfer (to)/from Board of County Commissioners Transfer (to)/from other governments Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Total Nonmajor Inter -Agency Special Revenue Communications Funds $ 154,174 $ 202,851 - 351,866 34,468 3,820,824 - 42,390 2,091 7,766 - 21,201 190,733 4,446,898 - 3,421,962 204,390 645,984 - 274,766 - 39,000 204,390 4,381,712 (13,657) 65,186 4,879 (28,096) (163,397) (186,614) (13,657) (121,428) 430,437 2,204,815 $ 416,780 $ 2,083,387 30 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGETANDACTUAL - TEEN COURT FUND YEAR ENDED SEPTEMBER 30, 2015 Revenues: Charges for services Total revenues Expenditures: Current: Personnel services Operating expense Total expenditures Excess of revenues over (under) expenditures Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 60,000 $ 63,000 $ 61,288 $ (1,712) 60,000 63,000 61,288 (1,712) 40,000 45,000 43,287 1,713 7,000 5,000 4,641 359 47,000 50,000 47,928 2,072 13,000 13,000 13,360 360 13,000 13,000 13,360 360 46,806 46,806 46,806 $ 59,806 $ 59,806 $ 60,166 $ 360 31 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - LAW ENFORCEMENT TRUST FUND YEAR ENDED SEPTEMBER 30, 2015 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental - BOCC $ 61,000 $ 43,000 $ 42,477 $ (523) Investment income - - 15 15 Total revenues 61,000 43,000 42,492 (508) Expenditures: Current: Operating expenses - - 3,492 (3,492) Aid to other governments/non-profits 61,000 43,000 39,000 4,000 Total expenditures 61,000 43,000 42,492 508 Excess of revenues over (under) expenditures - - - - Other financing sources Transfers (to)/from other funds Total other financing sources Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year $ $ $ $ 32 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGETANDACTUAL - STATE FORFEITURE FUND YEAR ENDED SEPTEMBER 30, 2015 Revenues: Fines and forfeitures Investment income Total revenues Expenditures: Current: Operating expenses Total expenditures Excess of revenues over (under) expenditures Other financing uses: Transfer (to)/from Board of County Commissioners Total other financing uses Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 144,500 $ 49,500 $ 42,390 $ (7,110) 500 500 153 (347) 145,000 50,000 42,543 (7,457) 33,000 20,000 14,447 5,553 33,000 20,000 14,447 5,553 112,000 30,000 28,096 (1,904) (112,000) (30,000) (28,096) 1,904 (112,000) (30,000) (28,096) 1,904 33 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- CONTRACT ADMINISTRATIVE FUND YEAR ENDED SEPTEMBER 30, 2015 Revenues: Intergovernmental - BOCC Intergovernmental - other governmental units Charges for services Interest income Total revenues Expenditures: Current: Personnel Operating expenses Capital expenses Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Transfers (to)/from other funds Transfers (to)/from other governments Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 8,400 $ 7,500 $ 6,200 $ (1,300) 470,000 365,000 351,866 (13,134) 3,394,600 3,300,000 3,278,422 (21,578) 2,000 2,500 2,345 (155) 3,875,000 3,675,000 3,638,833 (36,167) 3,230,000 3,220,000 3,217,803 2,197 300,000 225,000 218,597 6,403 145,000 60,000 58,522 1,478 3,675,000 3,505,000 3,494,922 10,078 200,000 170,000 143,911 (26,089) - - 4,879 4,879 (125,000) (170,000) (163,397) 6,603 (125,000) (170,000) (158,518) 11,482 75,000 (14,607) (14,607) 1,090, 391 1,090, 391 1,090, 391 $ 1,165,391 $ 1,090,391 $ 1,075,784 $ (14,607) 34 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- COMMISSARY FUND YEAR ENDED SEPTEMBER 30, 2015 Revenues: Charges for services Investment income Miscellaneous income Total revenues Expenditures: Current: Personnel expenses Operating expenses Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Transfers (to)/from other funds Total other financing sources (uses) Excess of revenues over expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year Variance With Final Original Final Positive Budget Budget Actual (Negative) $ 430,000 $ 449,800 $ 446,646 $ (3,154) 3,000 3,200 3,162 (38) 12,000 22,000 21,201 (799) 445,000 475,000 471,009 (3,991) 170,000 165,000 160,872 4,128 205,000 205,000 200,417 4,583 - 220,000 216,244 3,756 375,000 590,000 577,533 12,467 70,000 (115,000) (106,524) 8,476 3,500 3,500 73,500 (115,000) (106,524) 8,476 637,181 637,181 637,181 - $ 710,681 $ 522,181 $ 530,657 $ 8,476 35 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - INTER -AGENCY COMMUNICATIONS FUND YEAR ENDED SEPTEMBER 30, 2015 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental - BOCC $ 175,000 $ 157,000 $ 154,174 $ (2,826) Charges for services 65,000 40,000 34,468 (5,532) Investment income 10,000 3,000 2,091 (909) Total revenues 250,000 200,000 190,733 (9,267) Expenditures: Current: Operating expense 240,000 210,000 204,390 5,610 Capital outlay 10,000 - - - Total expenditures 250,000 210,000 204,390 5,610 Excess of revenues over (under) expenditures (10,000) (13,657) (3,657) Fund balances, beginning of year 430,437 430,437 430,437 Fund balances, end of year $ 430,437 $ 420,437 $ 416,780 $ (3,657) 36 MONROE COUNTY, FLORIDA SHERIFF AGENCY FUNDS DESCRIPTION The purpose of each agency fund in the combining financial statement on the following page is described below. Civil Process Fund - This fund accounts for receipt and disbursement of funds received for the service of papers by the Sheriff. Bonds Fund - This fund accounts for receipts and disbursements of the Bonds Fund. Inmate Fund - This fund accounts for receipts and disbursements of the monies held by the Sheriff on behalf of incarcerated inmates. 37 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED SEPTEMBER 30, 2015 October 1, September 30, 2014 Additions Deductions 2015 Civil Process Assets Cash and cash equivalent! $ 16,944 $ 157,813 $ 116,219 $ 58,538 Total assets $ 16,944 $ 157,813 $ 116,219 $ 58,538 Liabilities Accounts payable $ - $ 170,916 $ 170,486 $ 430 Due to Board of County Commissioners 9,917 52,724 57,701 4,940 Due to other funds - 6,596 149 6,447 Due to other governments 2,020 33,177 2,019 33,178 Due to individual: 5,007 56,831 48,295 13,543 Total liabilities $ 16,944 $ 320,244 $ 278,650 $ 58,538 Bonds Assets Cash and cash equivalent; $ 731,830 $ 528,306 $ 774,639 $ 485,497 Total assets $ 731,830 $ 528,306 $ 774,639 $ 485,497 Liabilities Due to individual: $ 731,825 $ 528,306 $ 774,634 $ 485,497 Due to other fund: 5 - 5 - Totalliabilities $ 731,830 $ 528,306 $ 774,639 $ 485,497 Inmate Assets Cash and cash equivalent; $ 31,760 $ 939,372 $ 951,367 $ 19,765 Due from others (Touch Pay 5,817 748,232 749,670 4,379 Due from other funds 54 - 54 - Total assets $ 37,631 $ 1,687,604 $ 1,701,091 $ 24,144 Liabilities Accounts payable $ 4,540 $ 402,384 $ 400,095 $ 6,829 Due to General Func 3,775 59,751 58,425 5,101 Due to Commissary func 4,117 138,859 138,013 4,963 Due to individuals 25,195 895,384 913,328 7,251 Due to other. 4 - 4 - Totalliabilities $ 37,631 $ 1,496,378 $ 11509,865 $ 24,144 Total All Aoencv Funds Assets Cash and cash equivalent! $ 780,534 $ 1,625,491 $ 1,842,225 $ 563,800 Due from others 5,817 748,232 749,670 4,379 Due from other funds 54 - 54 - Total assets $ 786,405 $ 2,373,723 $ 2,591,949 $ 568,179 Liabilities Accounts payable $ 4,540 $ 573,300 $ 570,581 $ 7,259 Due to Board of County Commissioner 9,917 52,724 57,701 4,940 Due to other funds 7,897 205,206 196,592 16,511 Due to other government: 2,020 33,177 2,019 33,178 Due to individuals 762,027 1,480,521 1,736,257 506,291 Due to others 4 - 4 - Totalliabilities $ 786,405 $ 2,344,928 $ 2,563,154 $ 568,179 38 SUPPLEMENTARY REPORTS `% Cherry Bekaert- CPAs & Advisors Report of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Sheriff (the "Sheriff') as of and for the year ended September 30, 2015, and the related notes to the financial statements, and have issued our report thereon dated February 21, 2016 for the purpose of compliance with Section 218.39(2), Florida Statutes and Chapter 10.550, Rules of the Auditor General -Local Governmental Entity Audits. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriffs internal control over financial reporting ("internal control") to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriffs internal control. Accordingly, we do not express an opinion on the effectiveness of the Sheriffs internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Sheriff's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriffs financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 39 Purpose of this Report This report is intended solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Sheriffs internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriffs internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Orlando, Florida February 21, 2016 40 `� Cherry Bekaert"P CPAs & Advisors Independent Auditor's Management Letter To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida Report on the Financial Statements We have audited the financial statements of the Monroe County, Florida Sheriff (the "Sheriff'), as of and for the year ended September 30, 2015, and have issued our report thereon dated February 21, 2016. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Report of Independent Accountant on Compliance with Local Government Investment Policies regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 21, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no recommendations made in the preceding audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The Sheriff was established by Article VIII, Section 1 (d), of the Florida Constitution. There are no component units related to the Sheriff. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 41 Purpose of this Letter The purpose of this management letter is to communicate certain matters prescribed in Chapter 10.550, Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose. Orlando, Florida February 21, 2016 42 `� Cherry Bekaert"P CPAs & Advisors Report of Independent Accountant on Compliance with Local Government Investment Policies To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida Report on Compliance We have examined the Monroe County, Florida Sheriff (the "Sheriff'), compliance with local government investment policy requirements of Section 218.415, Florida Statutes, for the year ended September 30, 2015. Management is responsible for the Sheriffs compliance with those requirements. Our responsibility is to express an opinion on the Sheriffs compliance based on our examination. Scope Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Sheriff's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriffs compliance with specified requirements. Opinion In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2015. Q-s"� `�� �- �- R Orlando, Florida February 21, 2016 43