Fiscal Year 2006krOA,O
CLERK OF
COURT
Financial nt
Page
Independent Auditors' Report ------------------ ---------------- 2 - 3
BASIC FINANCIAL STATEMENTS
Balance Sheet - Governmental Funds 4
Statement of Revenues, Expenditures and
Changes In Fund Balance - Governmental Funds 5
Statement of Fiduciary Assets and Liabilities - Agency Fund ---- -------------------------- -------- 6
Notes to Financial Statements ------------------------------------------- 7-11
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures -
Budget to Actual - General Fund ---- -- ----------------------------------------------------- 12
Schedule of Revenues and Expenditures —
Budget to Actual — Special Revenue Court Related Fund 13
Schedule of Revenues and Expenditures —
Budget to Actual — Special Revenue Records Modernization Fund 14
-------------------------
SUPPLEMENTARY INFORMATION
Statement of Changes in Assets and Liabilities -
AgencyFund .................................. ----------------------------------------------------------------------------- 15
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report on Internal Control over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
In Accordance with Government Auditing Standards ----------- --- ---------- ------------------ 16-17
To the Honorable Danny L. Kolhage,
Clerk of the Circuit Court of Monroe County, Florida:
111 am
Soo I r OWN
Pf contents. These financial statements are the responsibility of the Clerk's management. OW
responsibility is to express opinions on these financial statements based on our audit.
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
As discussed in
of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditc t
General -Local Governmental Entity Audits, and are not intended to be a complete presentat! I
of the financial position of Monroe Coun�y, Florida, and the results of its operations and th i
cash flows of its proprietary funds in conformity with accounting principles generally accepted 1
the United States of America.
lo N It'll
Z���17ZPTOFTHOV COFISlUel-aBO[Ill Lne UUMS iriterric-F70trui Mier firldriv-1al uttporung ano
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.
K
The budgetary comparison schedules on pages 12-14 are not a required part of the basic
financial statements but are supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures, which consisted
primarily of inquiries of management regarding the methods of measurement and presentation
of the required supplementary information. However, we did not audit the information and we
express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Clerk's basic financial statements. The accompanying statement of
changes in assets and liabes - agency fund is presented for purposes of addonal analysis
and is not a required part of the basic financial statements. This statement has been subjected
to the aung procedures applied by us in the audit of the basic financial statements and, in
our opinion, is fairly stated in all material respects in relation to the basic financial statements
taken as a whole.
This report is intended solely for the'information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
speced parties.
NUMM-=
F F- 5 D F-I Jim 0 M II a
0
Balance Sheet
Governmental Funds
September 1 2006
Major Funds
Court
Records
General
Related
Modernization
Fund
Fund
Fund
Tatais
ASSETS
Assets
Cash and cash equivalents
$
1,162,622
$ 1,016,418
$
1,301,990
$
3,481,030
Due from Board of County Commissioners
57,011
-
-
57,011
Due from other governments
28,237
-
28,237
Total assets$
1,219,633
$ 1,044,655
$
1,301, 90
$
3,666,278
LIABILMIES
Liabilities
Accounts payable and accrued liabilities
$
95,986
$ 149,340
$
50,776
$
296,102
Due to Board of County Commissioners
1,086,870
566,872
1,653,742
Due to Florida Department of Revenue
308,257
308,257
Deferred revenue
20,186
20,186
Deposits
36,777
-
36,777
Total liabil
1,219,633
.1,044,655
50,776
2,315,064
Fund balances
1,251,214
1®251,214
Total liabilities and fund balances
$
1,219,633
$ 1,044,655
$
1,301,990
3,56 ®278
The notes to the financial statements
are an integral part of this statement 4
Revenues
Intergovernmental
Charges for services
Board of County Commissioners
Others
Fines and forfeitures
Interest income
Miscellaneous
Expenditures
Current
General government
Salaries and benefits
Operating expenditures
Capital outlay
Total expenditures
Excess of revenues over expenditures
Other financing uses
Principal
Interest
Transfer to Board of County Commissioners
Transfer to Florida Department of Revenue
uses over revenues and other uses
Fund balances, and of year
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Governmental Funds
Year Ended September 30, 2006
Major Funds
Court
Records
General
Related
Modernization
Fund
Fund
Fund
ToWs
-
$ 694,068
$
$ 694,068
2,369,059
943,479
3,312,538
1,456,920
1,777,073
462,090
3,696,083
1,248,352
1,248,352
229,754
18
46,716
276,488
10,768
4,450
4,500
19,718
4,066,501
4,667,440
513,306
9,247-247
�. I �'
2,451,278
3,653,199
-
6,104,477
546,229
190,758
302,975
1,039,962
11,196
1,968
148,959
162,123
3,008,703
3,845,925
451,934
7,306,562
1,057,798
821,515
61,372
1,940,685
-
-
(209,849)
(209,849)
(13,376)
(13,376)
(1,057,798)
(513,258)
(1,571,056)
(308,267)
(308,257),
(1,057,798)
(821,515)
(223,225)
(2,102538)
The notes to the financial statements
are an integral part of this statement. 5
(161,853)
(161,853)
$ 1,251,214 $ 1,251,214
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Agency Fund
September 30, 2006
Cash and cash equivalents
Due from others
kfurur-=
RM-liff M
Due to others
Due to other govemmental agencies
The notes to the financial statements
V. an integral part of this statement. 6
2,301,091
129,185
1,365,403
3,795,679
=1 Fjj=LUL=j�jM=- I
RePorfing 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 ol
Florida. The Clerk's financial statements do not purport to reflect the financial position or the
results of operations of Monroe County, Florida (the "County") taken as a whole.
Entity status for financial reporfing purposes is governed by Statement No. 14 and No. 39 of the
Governmental Accounting Standards Board (GASB). Although the Clerk's Office is operationally
autonomous, it does not hold sufficient corporate powers of its own to be considered a legally
separate entity for financial reporting purposes. Therefore, the Clerk is reported as a part of the
primary government of the County.
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.
01401 [--TO tz400 IIIWE &MI WZIP LGIU--D&ISIVItt loin 41010i;IZIN
101411iml IIQ - I I a ON-
arlu eXpenEATIM UT UUM-anudons. Any elcebb MEM 07--T�Iku texple-nomme o
either the Florida Department of Revenue by January I for the preceding county fiscal year
or the Monroe County Board of County Commissioners (the "Board"), depending on where
the funds originated.
Fiduciary Fund - The Fiduciary fund of the Clerk is an Agency Fund, which is used to
,-.ccount for assets held by the Clerk as agent.
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The General Fund and the Special Revenue Funds are governmental funds which use thf
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 govemment 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 have been reorganized, since July 1, 2004, to be segregated between
court related and non -court related activities as defined by Article V. Any excess of court related
revenue over court related expenditures is reflected as a liability to either the Florida
Department of Revenue or the Board, depending on the source of the original funding. Any
excess of non -court related revenue over non court -related expenditures is reflected as a
liability to the Board.
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.
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.
Included are investments in the State Board of Administration Local Surplus Investment Pool
Trust Fund ("SBA"), a W-like investment pool stated at share price, which is substantially the
same as fair value.
Capital Assets - Tangible personal property used by the Clerk's operations are recorded
governmental fund types as expenditures at the time assets are received and a liability
i-
incurred. Purchased assets are capitalized at historical cost in the government -wide financl
statements of the County. In addition, the County provides administrative office space a
certain other expenditures used by the Clerk at no charge.
Compensated Absences - The Clerk permits employees to accumulate earned but unus
vacation and sick pay benefits. Related long-term obligations, amounting to $536,906
September 30, 2006, are included in the government -wide financial statements of the County,11
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Deferred Revenue — The Clerk reports as deferred revenue bond forfeitures that have not yet
been recognized as revenue in accordance with Section 903.28, Florida Statutes. This Section
requires the recognition of revenue over a two-year period. Amounts are reduced by any
reinstatement of bond amounts by court order.
Lei 1 if rz I I I r- I lrz I 1 [74"1 ILZI OM I (ZIS a; I I I LOR I a tRIM;LIMRr� IN LZ-N1"LkMOi6R I IMO I I I L-74 a I Lei I I W-7M I I I I
Aote 2 - Deposits and Investments
As of September 30, 2006, the Clerk has the following deposits and investments:
Demand Deposits $ 5,547,911
Local Government Surplus Trust Fund 1722471
Total cash and cash equivalents S-=LZZQ=-
Demand and time deposits are fully insured by the Federal Deposit Insurance Corporation or
are covered by the State of Florida collateral pool, a multiple institution pool with the ability to
assess its members for collateral if a member institution falls.
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 instrumentaes and I nterg ovem mental 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 is not rated as to credit quality
risks. The Local Government Surplus Funds Trust Fund is the only investment used by the
Clerk this year.
Note 3 - Retirement system
Plan Description — The Clerk's employees participate in the Florida Retirement System
("FIRS"), 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
FIRS. 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 FIRS provides retirement and disability benefits, annual cost -of -living adjustments, and
death benefits to Plan members and beneficiaries. Benefits are established by Chapter 121,
Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be
made only by an act of the Florida Legislature.
Benefits 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
1
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 $1,000,000 coverage per claim for
regular employees. Risk Management has a $5,000,000 excess insurance policy for general
liability claims with a $100,000 self -insured retention, and building property damage is covered
for the actual value of the building with a deductible between $100,000 and $250,000.
Deductibles for windstorm and flood vary by location. Monroe County purchases commercial
insurance for claims in excess of coverage provided by the funds and for all other risks of loss.
Settled claims have not exceeded this commercial coverage in any of the past three years. The
Clark makes payments to the Worker's Compensation, Group Insura ' nce and Risk Management
Funds based on estimates of the amounts needed to pay prior and current year claims.
.9r1T 111119MM --- -Marggf7w
d,=11W
%acipadlizus 0 1 - IV
leased assets capitalized, less payments since the inception of the lease discounted at the
implicit rate of interest in the lease. The future minimum debt reductions under capitalized
leases consist of the following at September 30, 2006:
Fiscal year ending September 30, 2007 $ 111,613
Amounts representing interest
Amounts associated with leases payable are reported in the government -wide statement of net
assets of the County, rather than on the Clerk's financial statements.
Operaffng Leases - The Clerk leases various office equipment under cancelable arrangements
2ccounted for as operating leases. Total lease expense was $86,072 for the year ended
September 30, 2006.
MUM=
The Clerk is a party from time to time in various lawsuits and other claims incidental to th(-.
ordinary course of its operation, some of which are covered by the County's self-insura
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.
11
0 1 IP a I i — w 1111111�� Ill Ill A a
r ! ! ! I ! ' E�
CLERK OF !
General Fund
Year Ended September 30, 2006
General Fund
Variance
Original
Final
Positive
Budget
Budget
Actual
(Negative)
Revenues
Charges for services
Board of County Commissioners
$ 2,580,231
$ 2,580,231
$ 2,369,059
$ (211,172)
Others
1,050,000
1,050,000
1,456,920
406,920
Interest income
9,754
229.764
Miscellaneous
LL
'10,768
10,788
Total revenues
3,630,31
3,630,231
4,066,501
436,270
Expenditures
Current
General government
Clerk recording
52,25
552,295
514,599
37,696
Clerk information systems
678,546
678,546
536,201
142,345
Clerk finance
1,419,964
1,419,964
1,415,586
4,378
Internal audit
229,556
229,556
154,133
75,423
Tourist tax audit
187,851
187,851
169,932
17,919
Non -court administration
109,783
109,783
102,875
6,908
Non -court records management
122,216
122,215
115,377
6,838
Total expenditures
3,300,210
3,30,210
3,0 ,703
291,07
Excess of revenues over expenditures
330,021
330,021
1,057,798
727,777
Other financing uses
Contingency
(330,021)
(330,021)
-
330,021
Transfer to Board of County Commiss loners
(1,0 7,798)
(1,057,798)
Total other financing uses
(330,021)
(330,021)
(1,057,798)
(727,777)
Net change in fund balance
Fund balance, beginning of year
Fund balance, and of year
12
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
ss�'S�Wle 1rf-Pr----&2e
Special Revenue Court Related Fund
Year Ended September 30,2006
Revenues
Intergovernmental
Charges for services
Board of County Commissioners
Others
Fines and forfeitures
Interest income
Miscellaneous
i - �'- - =
Expenditures
Current
General government
Clerk administration
Clark records management
Clerk jury management
Clerk circuit court criminal
Clerk circuit court civil
Clerk circuit court family
Clerk circuit court juvenile
Clerk circuit court probate
Clerk county court criminal
Clerk county court civil
Clerk county court traffic
Total expenditures
Excess of revenues over expenditures
Other financing uses
Contingency
Transfer to Board of County Commissioners
Transfer W Florida Department of Revenue
Total other financing uses
Not change In fund balance
Fund balance, beginning of year
Fund balance, and of year
957,225
957,225
943,479
(13,746)
1,720,498
1,673,189
1,777,073
103,884
1,247,982
1,263,982
1,248,352
(15,630)
18
18
4,450
4,450
4,132,148
4,578,148
4,667,440
89,292
310,034
310,034
291,396
18,638
345,143
345,143
323,965
21,178
141,964
94,484
84,836
9,649
820,340
811,840
758,109
53,731
389,437
389,437
361,127
28,310
117,359
125,859
123,744
2,115
154,666
162,666
162,361
305
67,774
98,254
98,261
3
700,987
658,987
614,579
44,408
309,906
301,9D6
272,937
28,969
700,616
759,616
754,621
4,995
4,058,226
4,058,226
3,W$,925
212,301
73,922
519,922
821,515
301,593
13
Revenues
Charges for services
Others
Interest Income
Miscellaneous
Total revenues
Expenditures
Current
General govemment
Mademization trust
Total expenditures
Excess of revenues over (under) expenditures
Other financing uses
Contingency
Principal
Interest
Total other financing uses
Net change in fund balance
Fund balance, beginning of year
Fund balance, and of year
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Special Revenue Records Modernization Fund
Year Ended September 30, 2006
Special Revenue
Records Modernization Fund
Variance
Original Final Positive
Budget- Budget Actual (Negative)
564,000 $ 564,000 $ 462,090 $ (101,910)
10,000 10,000 46,716 36,716
- - 4,500 4,500
574,000 574,000 513,306 (60,694)
841,500
1,149,275
451,934
697,341
841,500
1,149,275
451,934
697,341
(267,500)
(575,275)
61,372
636,647
(93,500)
(152,500)
152,500
(209,849)
(209,849)
(13,376)
(13,376)
-
(93,5DD)
(375,725)
(223,225)
152,500
(361,000)
(951,000)
(161,853)
709,147
1,413,067
1,413,067
1,413,067
1,052,067
462,067
$ 1,251.214 $
789,147
14
■ �' i �' � a '.. l
AOAROE CO I
HE CIRC R CLERK OF T�.7 UIT COL17T
Agency Fund
Year Ended September 30, 2006
Balance
Balance
October 1,
September 30,
2005
AdditIons
Deductions
2006
Assets
Cash and short-term investments
$
4,629,813
$
48,424,231
$
49,264,692
$
3,789,352
Due from others
10,798
53,232
57,703
61327
Total assets
$
4,640,611
$
48,477,463
$
49,322,395
$
3,795,679
Liabilities
Due to others
$
2,886,950
$
3,262,056
$
3,847,915
$
2,301,091
Due to Board of County Commissioners
113,279
1,391,250
1,375,344
129,185
Due to other governmental agencies
1,640,302
43,824,167
44,099,136
1,365,403
Total liabilities
$
4,640,611
$
48,477,463
$
49,322,395
$
3,795,879
15
E w E
T
A
To the Honorable Danny L. Kolhage,
Clerk of the Circuit Court of Monroe County, Florida:
We have audited the financial statements of each major fund of the Monroe County, Florida
Clerk of the Circuit Court (the "Clerk") as of and for the year ended September 30, 2006, which
JIQ-'s Wgii Jilijill 1411ill, lid Iraya N1sW&g oW; repot t1irmT,
ultou january,5T, ATI ror Tne p-Ef-paue ui Curnphance Ulm Seudun
and Chapter 10.560, 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
Audng 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 in order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and not to provide an opinion on the internal control over
financial reporting. Our consideration of the internal control over financial reporting would not
necessarily disclose all matters in the internal control over financial reporting that might be
material weaknesses. A material weakness is a reportable condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts that would be material in
relation to the financial statements being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operations that we consider
to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk's 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 financial statement amounts. However,
privillAS 2-X1giAi1X VX C*XK;FI19-X0e wft fttse Arivisiois w2s xot ar objective of our audit, aild
accordingly, we do not express such an opinion. The results of our tests disclosed no instances
if noncompliance or other matters that are required to be reported under Government Auditing
Standards.
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
speced parties.
MMMWM
�41
M
The Rules • the Auditor General (Section 10.554(l)(h)4) require disclosure in the management
letter of the following matters if not already addressed in the auditors' reports on compliance
and internal controls: (1) violations of laws, rules, regulations, and contractual provisions that
have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper
or inadequate accounting procedures (e.g., the omission of required disclosures from the
financial statements); (4) failures to properly record financial transactions, and (5) •
im
inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to t
attention of, the auditor. There were no such matters noted.
The Rules of the Auditor General (Section 10.554(l)(h)5) also require that the name or offici
title and legal authority for the primary government and each component unit of the reporti
entity be disclosed in the management letter, unless disclosed in the notes to the financi
statements. The Clerk is a separately elected county official established pursuant to t
Constitution of the State of Florida. There are no component units related to the Clerk.
The Rules of the Auditor General (Section 10.554(l)(h)7(a)) state that a management left
shall have a statement as to whether or not the Clerk complied with the budget certified by th -
Florida Clerk. of the Courts Operations Corporation pursuant to Section 28.35, Florida Statute
In connection with our audit of the financial statements of the Clerk we noted no noncomplian -
with Section 28.35 regarding the budget certified by the Florida Clerk of the Courts Operatio
Corporation.
The Rules of the Auditor General (Section 10.554(l)(h)7(b)) state that a management left
2 akft -• i - •- •T1rW&W%iM-r1 •
developed and certified pursuant to Section 28.35, Florida Statutes. In connection with our aud
of the financial statements of the Clerk, our testing did not indicate that the lerk as i
noncompliance with Section 28.35 regarding the performance standards developed an1. certified.
TAP
Orlando, Florida
January 30, 2007
19