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Fiscal Year 2010MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Special -Purpose Financial Statements For the Year Ended September 30, 2010 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Special -Purpose Financial Statements, Required Supplementary Information, Other Supplementary Information and Independent Auditors' Reports For the Year Ended September 30, 2010 Contents Independent Auditors' Report ------------------------------------------- --------------------- SPECIAL-PURPOSE FINANCIAL STATEMENTS Special -Purpose Balance Sheet - Governmental Funds-------------------------- Special -Purpose Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds ______________________________. Special -Purpose Statement of Fiduciary Assets and Liabilities - Agency Fund ---------------------------------------------------------------------- Notes to Special -Purpose Financial Statements -------------------------------------- REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues and Expenditures - Budget to Actual - General Fund__________________________________________________________ Schedule of Revenues and Expenditures — Budget to Actual — Special Revenue Court Related Fund --------------- -- Schedule of Revenues and Expenditures — Budget to Actual — Special Revenue Records Modernization Fund -- SUPPLEMENTARY INFORMATION Statement of Changes in Assets and Liabilities - AgencyFund ----------------------------------------------------------------------------------------- SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Special -Purpose Financial Statements Performed In Accordance with Government Auditing Standards________________________ Independent Auditors' Management Letter______________________________________________ Page 2-3 4 5 6 7-12 17 - 18 19-20 INDEPENDENT AUDITORS' REPORT To the Honorable Danny L. Kolhage, Clerk of the Circuit Court of Monroe County, Florida: We have audited the accompanying special-purpose financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk") as of and for the year ended September 30, 2010, which collectively comprise the Clerk's special-purpose financial statements as listed in the table of contents. These special- purpose financial statements are the responsibility of the Clerk's management. Our responsibility is to express opinions on these special-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United +� States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the err special-purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the special- purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall special-purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. M As discussed in Note 1, the accompanying special-purpose financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General -Local Governmental Entity Audits, and are not intended to be a complete presentation of the financial position of Monroe County, Florida as of September 30, 2010, and the results of its operations in conformity with accounting principles generally accepted in the United States of America. In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Clerk as of September 30, 2010, and the respective changes in financial position thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. 2 � I ' In accordance with Government Auditing Standards, we have also issued our report dated February 3, 2011 on our consideration of the Clerk's 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 our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is ' an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The budgetary comparison schedules on pages 13-15 are not a required part of the special- purpose financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement and presentation of ' the required supplementary information. However, we did not audit the information and we express no opinion on it. 1 Our audit was conducted for the purpose of forming opinions on the special-purpose financial statements. The accompanying statement of changes in assets and liabilities - agency fund is presented for purposes of additional analysis and is not a required part of the special-purpose ' financial statements. This statement has been subjected to the auditing procedures applied in the audit of the special-purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the special-purpose financial statements taken as a whole. ' CHERRY, BEKAERT & HOLLAND, L.L.P. ' Orlando, Florida February 3, 2011 1 1 SPECIAL-PURPOSE FINANCIAL STATEMENTS 11 U MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Special -Purpose Balance Sheet Governmental Funds September 30, 2010 Major Funds Court Records General Related Modernization ASSETS Assets Cash and cash equivalents $ 648,585 Due from Board of County Commissioners 12,586 Due from other governments 38,916 Total assets $ 700,087 LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued liabilities $ 53,480 Due to Board of County Commissioners 618,033 Deferred revenue - Deposits 28,574 Total liabilities 700,087 Fund balances - Total liabilities and fund balances $ 700,087 $ 709,062 28,095 $ 737,157 $ 145,048 434,825 157,284 737,157 $ 737,157 $ 952,206 $ 952,206 $ 565 565 951,641 $ 952,206 Totals $ 2,309,853 12,586 67,011 $ 2,389,450 $ 199,093 1,052,858 157,284 28,574 1,437,809 951,641 $ 2,389,450 The notes to the special-purpose financial statements are an integral part of this statement. 4 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Special -Purpose Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended September 30, 2010 Revenues Taxes Intergovernmental Charges for services Fines and forfeitures Interest income Miscellaneous Total revenues Expenditures Current General government Salaries and benefits Operating expenditures Court related Salaries and benefits Operating expenditures Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources and (uses) Transfer from Board of County Commissioners Transfer to Board of County Commissioners Transfer from Florida Department of Revenue Transfer to Florida Department of Revenue Total other financing sources and (uses) Excess of revenues and other financing (uses) over expenditures Fund balances, beginning of year Fund balances, end of year Major Funds Court Records General Related Modernization Fund Fund Fund Totals $ 358,715 $ - $ - $ 358,715 - 137,329 - 137,329 632,871 - 219,642 852,513 - - 192,810 192,810 39,247 - 7,537 46,784 4,325 - - 4,325 1,035,158 137,329 419,989 1,592,476 2,662,824 - 2,662,824 449,721 - - 449,721 - 3,368,283 - 3,368,283 - 235,747 142,914 378,661 20,139 19,626 14,867 54,632 3,132,684 3,623,656 157,781 6,914,121 (2,097,526) (3,486,327) 262,208 (5,321,645) 2,715,559 712,908 - 3,428,467 (618,033) (434,825) - (1,052,858) 3,355,406 - 3,355,406 - (147,162) - (147,162) 2,097,526 3,486,327 - 5,583,853 - - 262,208 262,208 - - 689,433 689,433 $ - $ - $ 951,641 $ 951,641 The notes to the special-purpose financial statements are an integral part of this statement. MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Special -Purpose Statement of Fiduciary Assets and Liabilities Agency Fund September 30, 2010 Assets Cash and cash equivalents Due from others Total assets Liabilities Due to others Due to Board of County Commissioners Due to other governmental agencies Total liabilities The notes to the special-purpose financial statements are an integral part of this statement. 6 $ 2,446,132 4,579 $ 2,450,711 $ 1,393,561 115,952 941.198 $ 2,450,711 U ' MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Notes to Special -Purpose Financial Statements Year Ended September 30, 2010 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity - The Monroe County, Florida Clerk of the Circuit Court (the "Clerk") is a separately elected county official established pursuant to the Constitution of the State of Florida. The Clerk's special-purpose financial statements do not purport to reflect the financial position or the results of operations of Monroe County, Florida (the "County") taken as a whole. Entity status for financial reporting purposes is governed by Statements No. 14, as amended by Statement No. 39, of the Governmental Accounting Standards Board (GASB). Although the Clerk'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 Clerk is reported as a part of the primary government of Monroe County, Florida. Description of Funds - The accounting records are organized for reporting purposes on the basis ' of three governmental funds and a fiduciary fund. General Fund - The General Fund is a governmental fund used to account for all revenues and ' expenditures applicable to the general operations of the Clerk that are not required legally or by accounting principles generally accepted in the United States of America to be accounted for in another fund. Court Related Fund — A special revenue fund is used to account for proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes. The Court Related Fund special revenue fund is used to account for revenues and expenditures of court functions. Any excess fees over actual expenditures is returned to either the Florida Department of Revenue or the Monroe County Board of County Commissioners (the "Board"), depending on where the funds originated. Records Modernization Fund - The Records Modernization Fund is a special revenue fund used to account for recording fees restricted for records modernization pursuant to an act of the 1987 Florida Legislature. The proceeds are to be used exclusively for equipment, personnel training, and technical assistance in modernizing the official records system and to pay for equipment and start up costs necessitated by a state wide recording system. Pursuant to an act of the 2009 Florida Legislature, this fund also receives 10% of all fines collected by the Clerk to be used for any court related purpose. Fiduciary Fund - The Fiduciary fund of the Clerk is an Agency Fund, which is used to account for assets held by the Clerk as agent. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - The Clerk's special-purpose 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 require the Clerk to only present fund financial statements. In conformity with the Rules, the Clerk has not presented the government -wide financial statements, related disclosures or management's discussion and analysis, which are required to present a complete presentation of its financial position and changes in financial position. 7 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT ` Notes to Special -Purpose Financial Statements Year Ended September 30, 2010 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The General Fund and the Special Revenue Funds are governmental funds which use the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when measurable and available. Revenues are considered to be available when - they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Clerk considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. 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 Clerk reports the General Fund, Court Related Fund and the Records Modernization Fund as major governmental funds and the Agency Fund as a fiduciary fund type. The Agency Fund is custodial in nature and does not involve measurement of results of operations. The Clerk's operations are segregated between court related and non -court related activities as defined by Article V of the Florida Constitution. Any excess of court related revenue over court related expenditures is reflected as either a liability or a deferred revenue. Any excess of non -court related revenue over non court -related expenditures is reflected as a liability to the Board. Pursuant to an act of the 2009 Florida Legislature the Clerk is part of the state appropriation process. All court -related revenue is recorded as a liability and remitted monthly to the State of Florida Department of Revenue Clerks of the Court Trust Fund. The Clerk receives a predetermined share of a statewide. appropriation to all State of Florida Clerks of Court. This appropriation is accounted for as another financing source in accordance with the State of Florida Department of Financial Services' Uniform Accounting System Chart of Accounts. Budgetary Requirements - Expenditures are controlled by appropriations in accordance with the budget requirements set forth in the Florida Statutes. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The Florida Clerks of Court Operations Corporation ("CCOC") approves the budget for the Clerk's court -related activities for the twelve-month period beginning July 1 through June 30 pursuant to Senate Bills 2108 and 1718 enacted in 2009. The Clerk's statutory fiscal year is from October 1 through September 30. The Clerk is not required to submit its non -court -related activities budget for approval to the CCOC. The non court related budget is the Clerk's General Fund budget. The Clerk is not required to submit its court related special revenue fund budgets for approval to the Board. Cash and Cash Equivalents — The Clerk's cash and cash equivalents consist of demand deposits and highly liquid investments with maturities of 90 days or less when purchased. Capital Assets - Tangible personal property used by the Clerk's operations are recorded in governmental fund types as expenditures at the time assets are received and a liability is incurred. Purchased assets are capitalized at historical cost in the government -wide financial statements of the County. In addition, the County provides administrative office space and certain other expenditures used by the Clerk at no charge. 9 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Notes to Special -Purpose Financial Statements Year Ended September 30, 2010 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Compensated Absences - The Clerk permits employees to accumulate earned but unused vacation and sick pay benefits. The Clerk is not legally required to and does not accumulate expendable available 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 Clerk's compensated absences obligation is as follows: Balance, October 1, 2009 Additions Deletions Balance, September 30, 2010 Deferred Revenue — The Clerk reports appropriations from the State of Florida received in advance of the designated period. $ 759,522 372,079 (419,480) $ 712,121 as deferred revenue any excess of court -related over expenditures and court -related appropriations Use of Estimates - The preparation of special-purpose financial statements requires management to make use of estimates that affect reported amounts. Actual results could differ from estimates. NOTE 2 — DEPOSITS AND INVESTMENTS As of September 30, 2010, the Clerk's cash and cash equivalents are held in demand deposits with a carrying amount of $4,755,985 and a bank balance of $5,234,851. The Clerk places its cash and cash equivalents on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation (FDIC) covers $250,000 for substantially all depository accounts. The Clerk from time to time may have amounts on deposit in excess of the insured limits and the remaining balances are insured 100% by the State of Florida collateral pool, a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. Florida Statutes 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 and Intergovernmental Investment Pools that are authorized pursuant to the Florida Interlocal Cooperation Act, as provided in Section 163.01, Florida Statutes. The Local Government Surplus Funds Trust Fund's name was changed in 2009 to Florida PRIME. The Florida PRIME is rated by Standard and Poors. The current rating is AAAm. lr ft MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Notes to Special -Purpose Financial Statements Year Ended September 30, 2010 NOTE 3 - RETIREMENT SYSTEM Plan Description — The Clerk's employees participate in the Florida Retirement System ("FRS"), administered by the Florida Department of Administration. Employees elect to participate in either the defined benefit plan ("Pension Plan"), a cost sharing, multiple -employer, defined benefit retirement plan, or the defined contribution plan (Investment Plan) under the FRS. As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to Plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, an Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida Legislature. Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. Regular class employees who retire at or after age 62 with 6 years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation for each year of credited service. Vested employees with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special risk class employees (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with 6 years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life equal to 3.0% of their final average compensation for each year of credited service. Senior Management Service class employees who retire at or after age 62 with at least 6 years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation for each year of credited service. Elected Officers' j class employees who retire at or after age 62 with at least 6 years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges and justices) of their final average compensation for each year of credited ' service. A post -employment health insurance subsidy is also provided to eligible retired employees through the FRS in accordance with Florida Statutes. ' In addition to the above benefits, the FRS administers a Deferred Retirement Option Program ("DROP"). This program allows eligible employees to defer receipt of monthly retirement benefit payments while continuing employment with a 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 employees electing to participate in the Investment Plan rather than the Pension Plan, vesting t occurs at one year of service. These participants receive a contribution of self -direction in an investment product with a third party administrator selected by the State Board of Administration. ' The State of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000 or accessing their internet site at www.frs.state.fl.us. 10 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Notes to Special -Purpose Financial Statements Year Ended September 30, 2010 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 through June 30, 2010 were as follows: regular 9.85%; special risk 20.92%; special risk administrative support 12.55%; county elected officers 16.53%; senior management 13.12% and DROP participants 10.91%. Effective July 1, 2010 the contribution rates by job class were as follows: regular, 10.77%; special risk, 23.25%; special risk administrative support, 13.24%; county elected officers, 18.64%; senior management, 14.57%; and DROP participants, 12.25%. During the fiscal year ended September 30, 2010, the Clerk contributed to the Plan an amount equal to 10.60% of covered payroll. Clerk contributions to the FRS for the fiscal years ended September 30, 2008 through 2010 were $473,335, $457,458, and $462,007, respectively, which were equal to the required contributions for each fiscal year. The Clerk 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 — OTHER POSTEMPLOYMENT BENEFITS (OPEB) The Monroe County Board of County Commissioners (BOCC) administers a single -employer defined benefits healthcare plan (the "Plan"). Florida Statutes 112.0801 requires the County to provide'retirees and their eligible dependents with the option to participate in the Plan if the County provides health insurance to its active employees and their eligible dependents. The Plan provides medical coverage and prescription drug benefits to both active and eligible retired employees. The Plan does not issue a publicly available financial report. The BOCC may amend the plan design, with changes to the benefits, premiums and/or levels of participant contribution at any time. In an open session, on at least an annual basis and prior to the annual enrollment process, the BOCC approves the rates for the coming calendar year for the retiree and County contributions. Eligibility for post employment participation in the Plan is limited to full time employees of the County, and the Constitutional Officers. Employees who retire as an active participant in the Plan and were hired on or after October 1, 2001 may continue to participate in the Plan by paying the monthly premium established annually by the BOCC. Employees who retire as an active participant in the plan, were hired before October 1, 2001, have at least ten years of full time service with the County, and meet the retirement criteria of the Florida Retirement System (FRS) may continue to participate in the Plan at a cost equal to the FRS Health Insurance Subsidy for ten years of service (currently $5 per month for each year of service credit at retirement or $50 per month). Retirees who have met the requirements for early retirement, have not achieved age 60 and whose age and years of service do not equal 70 (rule of 70) must pay the standard monthly premium until the age criteria or the rule of 70 is met. At that time, the retiree's cost of participation will be equal to the FRS Health Insurance Subsidy. Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are met. 11 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Notes to Special -Purpose Financial Statements Year Ended September 30, 2010 NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS (OPEB) (continued) The BOCC engages an actuarial firm on a biannual basis to determine the County's actuarially determined annual required contribution and unfunded obligation. The Clerk has no responsibility to the Plan other than to make the periodic payments determined by the BOCC. Further information about the Plan is available in the County's Comprehensive Annual Financial Report which is published on the Clerk's website at www. clerk-of-the-court.com. NOTE 5 - RISK MANAGEMENT The Clerk is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Clerk participates in the coverage provided by the Board of County Commissioners of Monroe County Workers' Compensation, Group Insurance, and Risk Management Internal Service Funds. Under these programs, the Worker's Compensation Fund 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 $100,000 self -insured retention, and building property damage is covered for the actual value of the building with a deductible between $100,000 and $250,000. Deductibles for windstorm and flood vary by location. The County purchases commercial insurance for claims'in excess of coverage provided by the funds and for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years. The Clerk makes payments to the Worker's Compensation, Group Insurance and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. NOTE 6 - LEASE COMMITMENTS The Clerk leases various office equipment under cancelable arrangements accounted for as operating leases. Total lease expense was $46,577 for the year ended September 30, 2010. NOTE 7 - LITIGATION The Clerk is a party from time to time in various lawsuits and other claims incidental to the ordinary course of its operation, some of which are covered by the Board's self-insurance program. While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on the Clerk's financial position. 12 11 11 I I I REQUIRED SUPPLEMENTARY INFORMATION I [i 1 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Schedule of Revenues and Expenditures - Budget to Actual General Fund Year Ended September 30, 2010 General Fund Variance Original Final Positive Budget Budget Actual (Negative) Revenues $ 155,301 $ 155,301 $ 358,715 $ 203,414 Taxes Charges for services 606,934 606,934 632,871 39,247 25,937 (52,391) Interest income 91,638 1,428 91,638 1,428 4,325 2,897 Miscellaneous income Total revenues 855,301 855,301 1,035,158 179,857 fM Expenditures Current General government Clerk recording 436,892 436,892 426,398 10,494 Clerk information systems 672,818 1,626,518 667,589 1,626,518 549,684 1,584,349 117,905 42,169 Clerk finance Internal audit 253,961 247,911 242,039 5,872 Tourist tax audit 155,301 166,580 144,674 87,072 21,906 17,565 Non -court administration 104,637 122,984 104,637 122,984 98,468 24,516 Non -court records management Total expenditures 3,373,111 3,373,111 3,132,684 240,427 ' Excess of revenues over (under) expenditures (2,517,810) (2,517,810) (2,097,526) 420,284 Other financing sources and uses (200,000) (200,000) - 200,000 Contingency Transfer from Board of County Commissioners 2,717,810 2,717,810 - 2,715,559 (618,033) (2,251) (618,033) Transfer to Board of County Commissioners - Total other financing sources and uses 2,517,810 2,517,810 2,097,526 (420,284) Net change in fund balance Fund balance, beginning of year Fund balance, end of year $ $ $ - $ 11 11 11 II 11 11 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Schedule of Revenues and Expenditures - Budget to Actual Special Revenue Court Related Fund Year Ended September 30, 2010 Special Revenue Court Related Fund Variance Original Final Positive Budget Budget Actual (Negative) Revenues $ 119,000 $ 119,000 $ 137,329 $ 18,329 Intergovernmental Expenditures Current Court Related 281,673 281,673 268,853 12,820 Clerk administration Clerk records management 331,541 307,541 282,298 25,243 2,356 Clerk jury management 114,527 793,263 156,527 750,703 154,171 731,572 19,131 Clerk circuit court criminal 469,912 469,912 463,555 6,357 Clerk circuit court civil - 10,347 8,448 1,899 Clerk circuit court foreclosure 134.318 134,318 122,681 11,637 Clerk circuit court family Clerk circuit court juvenile 116,034 116,034 112,134 3,900 Clerk circuit court probate 93,671 557,626 93,671 558,626 91,868 557,182 1,803 1,444 Clerk county court criminal 192,856 230,416 220,293 10,123 Clerk county court civil Clerk county court traffic 643,761 629,761 610,601 19,160 Total expenditures 3,729,182 3,739,529 3,623,656 115,873 Excess of revenues over (under) expenditures (3,610,182) (3,620,529) (3,486,327) 134,202 Other financing sources and uses (103,557) (103,557) - 103,557 Contingency Transfer from Board of County Commissioners 754,989 754,989 434,825 (434,825) (34,637) (13,879) Transfer to Board of County Commissioners (400,188) 3,358,938 (400,188) 3.369,285 3,355,406 (13,879) Transfer from Florida Department of Revenue - (147,162) (147,162) Transfer to Florida Department of Revenue - Total other financing sources and uses 3,610,182 3,620,529 3,486,327 (134,202) Net change in fund balance " Fund balance, beginning of year " Fund balance, end of year $ $ - $ $ 14 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Schedule of Revenues and Expenditures - Budget to Actual Special Revenue Records Modernization Fund rr Year Ended September 30, 2010 to M Revenues IN Charges for services Fines Interest Income is Total revenues Special Revenue Records Modernization Fund variance Original Final Positive Budget Budget Actual (Negative) $ 256,000 $ 256,000 $ 219,642 $ (36,358) 90,000 90,000 192,810 102,810 - - 7,537 7,537 346,000 346,000 419,989 73,989 Expenditures Current Court related Modernization trust 583,700 583,700 157,781 (425,919) Clerk Fines 104,020 104,020 - (104,020) Total expenditures 687,720 687,720 157,781 (529,939) Excess of revenues over (under) expenditures (341,720) (341,720) 262,208 603,928 Other financing uses (98,200) (98,200) - 98,200 Contingency Total other financing uses (98,200) (98,200) - 98,200 Net change in fund balance (439,920) (439,920) 262,208 702,128 Fund balance, beginning of year 636,400 636,400 689,433 53,033 Fund balance, end of year $ 196,480 $ 196,480 $ 951,641 $ 755,161 15 SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT Statement of Changes in Assets and Liabilities Agency Fund Year Ended September 30, 2010 Balance Balance October 1, September 30, 2009 Additions Deductions 2010 Assets Cash and cash equivalents $ 3,321,255 $ 33,257,318 $ 34,132,441 $ 2,446,132 Due from others 4,198 13,048 12,667 4,579 Total assets $ 3,325,453 $ 33,270,366 $ 34,145,108 $ 2,450,711 Liabilities Due to others $ 2,153,697 $ 11,435,146 $ 12,195,282 $ 1,393,561 Due to Board of County Commissioners 97,892 1,268,277 1,250,217 115,952 Due to other governmental agencies 1,073,864 20,566,943 20,699,609 941,198 Total liabilities $ 3,325,453 $ 33,270,366 $ 34,145,108 $ 2,450,711 16 SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF SPECIAL-PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Danny L. Kolhage, Clerk of the Circuit Court of Monroe County, Florida: We have audited the special-purpose financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk") as of and for the year ended September 30, 2010, which collectively comprise the Clerk's special-purpose financial statements, and have issued our report thereon dated February 3, 2011 for the purpose of compliance with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General -Local Governmental Entity Audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the Clerk's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the special-purpose financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Clerk's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Clerk's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 17 M we Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk's special-purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, and contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of special-purpose financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Clerk, management, the Florida Auditor General, and applicable state agencies, and is not intended to be and should not be used by anyone other than these specified parties. CHERRY, BEKAERT & HOLLAND, L.L.P. r Orlando, Florida February 3, 2011 I I I I 1 11 18 INDEPENDENT AUDITORS' MANAGEMENT LETTER ` To the Honorable Danny L. Kolhage, Clerk of the Circuit Court of Monroe County, Florida: We have audited the special-purpose financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk"), as of and for the year ended September 30, 2010, and have issued our report thereon dated February 3, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Special -Purpose Financial Statements Performed in Accordance with Government Auditing Standards. Disclosures in that report, dated February 3, 2011 should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General -Local Governmental Entity Audits, which govern the conduct of local government entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors' report. Section 10.554(1)(i)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. No recommendations were made in the preceding annual financial audit report. Section 10.554(1)(i)2, Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.145, Florida Statutes, regarding the investment of public funds. In connection with our audit of the special-purpose financial statements of the Clerk, nothing came to our attention that could cause us to believe that the Clerk was in noncompliance with Section 218.415 regarding the investment of public funds. Section 10.554(1)(i)3, Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. ' Section 10.554(1)(i)4, Rules of the Auditor General, requires that we address violations of provisions of contracts and grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the special-purpose financial statements that is less than ' material but more than inconsequential. In connection with our audit, we did not have any such findings. 19 Section 10.554(1)(i)5, Rules of the Auditor General, provides that the auditor may, based on professional judgment, report the following matters that have an inconsequential effect on financial statements, considering both quantitative and qualitative factors: (1) violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and (2) deficiencies in internal control that are not significant deficiencies. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)6, Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the special-purpose financial statements. The Clerk is a separately elected county official established pursuant to the Constitution of the State of Florida. There are no component units related to the Clerk. Section 10.554(1)(i)8, Rules of the Auditor General, requires a statement as to whether or not ,... the Clerk complied with the requirements of Sections 28.35 and 28.36, Florida Statutes. In connection with our audit of the special-purpose financial statements of the Clerk, our testing did not indicate that the Clerk was in noncompliance with such requirements. Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Clerk, management and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. CHERRY, BEKAERT & HOLLAND, L.L.P. Orlando, Florida February 3, 2011 1� J 1 F 20