Fiscal Year 2003CLERK OF THE � CIRCUIT�
COURT
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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, ---------- ....... --- .......................................................... 7-12
Schedule of Revenues and Expenditures -
Budget to Actual - General Fund ............................................................................ 13
JAZHUONIEMORN YZAR-017
Statement of Changes in Assets and Liabilities -
AgencyFund..,- ......................................................................................................... I
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report on Compliance and on Internal
Control over Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards ........................................................................... 15-16
Independent Auditors' Management Letter ............................................................... 17-18
V M =1 I � F-TIT KIM ff r-TIM -; - =I. A
To the Honorable Danny L. Kolhage,
Clerk of the Circuit Court of Monroe County, Florida:
We have audited the accompanying 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, 2003, which collectively
comprise the Clerk's basic financial statements as listed in the foregoing table of
contents. These financial statements are the responsibility of the Clerk's management.
Our responsibility is to express opinions on these financial statements based an our
audit.
We conducted our audit in accordance with auditing standards generally accepted in
the United States of America and the standards applicable to financial audits contained
in Government Auditing Standards issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
As discussed in Note 1, the financial statements present only the Clerk and do not
purport to, and do not, present fairly the financial position of Monroe County, Florida as
of September 30, 2003, and the changes in its financial position for the year then ended
in conformity with accounting principles generally accepted in the United States of
America.
year then ended, in conformity with accounting principles generally accepted
United States of America.
In accordance with Govemment Auditing Standards, we have also issued a repor',
dated January 22, 2004 on our consideration of the Clerk's internal control over
financial reporting and our tests of its compliance with certain provisions of laws,
regulations, and contracts. That report is an integral part of an audit performed in
accordance with Govemment Auditing Standards and should be read in conjunction
with this report in considering the results of our audit.
The budgetary comparison schedule on page 12 is not a required part of the basic
financial statements but is supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures, which
consisted primarily of inquires 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 liabilities - agency fund is presented
for purposes of additional analysis and is not a required part of the basic financial
statements. This statement has been subjected to the auditing 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 specified parties.
#
West Palm Beach, Florida
January 22, 2004
= A i A 1
Balance
Governmental Funds
September 1 2003
Major Funds
General Special
Fund RevenueTotals
U,i
Cash and cash equivalents
385,340
385,340
Total Assets
$
-
385,340
385,340
Fund Balance 385,340 385,340
Total Liabilities and FundBalance m 5,3 385,340
The notes to the financial statements
are an integral part of this statement. 4
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Governmental Funds
Year Ended September 30, 2003
�tevenues:
Charges for services
Intergovernmental revenues:
Fees for services provided to Board
of County Commissioners
Interest income
Total revenues
Expenditures:
Current:
General government:
Salaries and benefits
Operating expenditures
Capital outlay
Total expenditures
I - . I - I 411411liq--i
Fund balance, end of year
Major Funds
General Fund Special Revenue Totals
$ 2,126,464 $ 161,915 $ 2,288,379
2,440,580 v 2,440,580
I-L:
3452 3,452
---------------- =-
4,570,496 161,915 4,732,411
3,889,708
632,031
48,757
4,570,496
3,889,708
632,031
48,757.
4,570,496
161,915 161,915
223,425 23,42
385,340 $ 385,340
The notes to the financial statements
are an integral part of this statement. 5
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
Statement of Fiduciary Assets and Liabilities
Agency Fund
September 30, 2003
Cash and cash equivalents
Due from others
VIM 17=-
Due to others
Due to Board of County Commissioners
Due to other governmental agencies
3,981,966
8,331
11,828
4,002,125
2,508,935
441,086
1,052,104_
4,002,125
The not to the financial statements
are an integral part of this statement. 6
- M-MMITTITI-111 141 FE=
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 financial statements -do not purport to reflect the financial
position or the results of operations of Monroe County, Florida (the "County") taken as a
w1role.
Entity status for financial reporting purposes is governed by Statement No. 14 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 two governmental funds and fiduciary funds.
General Fund - The General Fund is used to account for all revenues and
expenditures applicable to the general operations of the Clerk.
Special Revenue Fund - The Special Revenue Fund is used to account for the
proceeds of specific revenue sources that are legally restricted or committed to
expenditures for specified purposes. The sole Special Revenue Fund of the Clerk is
the Public Records Modernization Trust Fund, which was established 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
statewide recording system. The Special Revenue fund was classified as part of the
Clerk's Agency fund prior to fiscal year 2003. The related fund balance at the
beginning of fiscal year 2003 represents the balance of cash and cash equivalents
as of the beginning of the fiscal year.
Fiduciary Fund - The Fiduciary fund of the Clerk is an Agency Fund, which is usErs
to account for assets held by the Clerk as agent. i
Measurement Focus, Basis of Accounting, and Financial Statement Presentation -
The General Fund and Special Revenue Fund are governmental funds which use the
current financial resources measurement focus and the modified accrual basis of
accounting. Revenues are recognized when measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 90 days of
0
the end of the current fiscal period. Expenditures generally are recorded ia"i'i"'
whe
n a is incurred, as under accrual accounting. However, expenditures related
compensated absences and claims and judgments are recorded only when payment
due. I
The Clerk is a budget based constitutional officer. As such, expenditures in excess of
charges for services are funded through appropriations from the Board of County
Commissioners (the "Board"). In addition, the General Fund does not have assets or
labilitie ' s since assets derived from operations are the property of the Board and the
loard assumes all related liabilities.
Budgetary Requirements - Expenditures are controlled by appropriations in
accordance with the budget requirements set forth in the Florida Statutes. The budget
for the General Fund is prepared on a basis consistent with accounting principles
generally accepted in the United States of America. The Special Revenue Fund does
not have a legally adopted budget.
Cash and Cash Equivalents - 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 Poll Trust Fund ("SBA"),
a 2a7-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 in the General Fund as an expenditure at the time assets are received and a
liability is incurred. Purchased assets are recorded at historical cost in the government -
wide financial statements of the County.
In addition, the Board provides administrative office space, payroll processing services,
and certain other expenditures used by the Clerk at no charge.
Compensated Absences - The Clerk permits employees to accumulate earned bu)
unused vacation and sick pay benefits. Related long-term obligations, amounting to
$449,804 at September 30, 2003, are included in the government -wide financial
statements of the County.
D]
Use of Estimates - The preparation of financial statements requires management
make use of estimates that affect reported amounts. Actual results could differ fro
estimates. I
-U,
Cash and cash equivalents consist of various demand deposit accounts and
investments in the SBA. The demand deposits accounts are insured by the Federal
Deposit Insurance Corporation or are 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 in the SBA are not categorized as to
credit risk since they are not evidenced by securities that exist in physical or book entry
form.
Florida Statute 218.415 authorizes local governments to invest its funds pursuant to a
written investment plan and pursuant to Article VIII, s.1 of the Florida Constitution. The
Board adopted its investment policy:
b) United States Government Securities — negotiable direct obligations, or
obligations the principle and interest of which are unconditionally guaranteed by
the US Government.
c) United States Government Agencies — bonds, debentures, notes, callables and
fixed rate mortgage -backed securities issued or guaranteed by the US
Government Agencies, provided such obligations are backed by the full faith and
credit of the United States.
d) Federal Instrumentalities (US Government-sponsore ' d agencies) — senior
obligations, which include bonds, debentures, notes, callables and fixed rate
mortgage -backed securities issued or guaranteed by the US government -
sponsored agencies (Federal Instrumentalities).
e) Interest -bearing Time Deposit or Savings Accounts
f) Registered Investment Companies (Money Market Mutual Funds)
g) Intergovernmental Investment Pool
1
MH N
rM a a ITS U NO I LNG rz Mis IM W I WA I 19
Plan Description - The Clerk's employees participate in the Florida Retirement System
multiple -employer cost -sharing defined benefit retirement plan administered
by the Florida Department 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. Employees have the option of participating in an Investment Plan
or a Pension Plan. For the Pension Plan, benefits are computed on the basis of age,
average final compensation, and service credit. Regular class employees who retire at
or after age 62 with at least 6 years of credited service or 30 years of service regardless
of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their
final average compensation for each year of credited service. 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 at least 6 years of credited
service, or with 25 years of service regardless of age, are entitled to a retirement benefit
payable monthly for life equal to 3% of their final average compensation for each year
of credited service. 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 Florida Retiremen!
System employer for a period not to exceed 60 months after electing to participate.
Deferred monthly benefits are held in the Florida Retirement System Trust Fund and
accrue interest.
For those employees who elect participation in the Investment Plan rather than the
Pension Plan, vesting occurs at one year of service. These participants receive a
contribution for self -direction in an investment product with a third party administrator
selected by the State Board of Administration.
10
The State of Florida annually issues a publicly available financial report that includes
financial statements and required supplementary information for the FRS. The latest
2vailable report may be obtained by writing to the State of Florida Division of
Retirement, Department of Management Services, 26319 North Monroe Street,
luilding C, Tallahassee, Florida 32299-1560.
Funding Policy - The FRS is noncontributory for members. Governmental employers
are required to make contributions to the FRS based on statewide contribution rates.
The contribution rates by job class at September 30, 2003 were as follows: regular
7.39%; special risk 18.53%; special risk administrative support 9.92%: county elected
officers 15.23%; senior management 9.37%; and DROP participants 9.11 %. During the
fiscal year ended September 30, 2003, the Clerk contributed to the Plan an amount
equal to 6.46% of covered payroll. Clerk contributions to the FRS for the fiscal years
ended September 30, 2001 through 2003 were $267,100, $291,100 and $221,293
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.
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 Worker's Compensation, Group Insurance, and Risk
Management internal service funds. Under these programs, the Workers
Compensation Fund provides $350,000 coverage per claim for regular employees.
Risk Management has a $5,000,000 excess insurance policy for general liability claims
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 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.
11
Operating office equipment •-cancelable
arrangements accounted for as operating leases.• -a- expense was $'" •10 for
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
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GenemlFund
Variance
Original
Final
Positive
�udget
Budget
Actual
(Negative)
Revenues-,
Charges for services
$ 1,280,000
$ 1,280,000
$ 2,126,464
$ 846,464
Intergovernmental revenues:
Fees for services provided to Board
of County Commissioners
3,558,901
3,413,651
2,440,580
(973,071)
Interest income
------------ 'A=1 452
3,452
Total revenues
4,838,901
4,693,651
4,570,496
L1�3,155)
Expenditures:
Current:
General government.
Salaries and benefits
3,968,751
3,947,701
3,889,708
57,993
Operating expenditures
694,600
695,466
632,031
63,435
Debt service
145,250
-
-
-
Capital outlay
30,300
50,484
48,77
1,727
Total expenditures
4,838,901
4,693,651
4,570,496
123,155
Excess of revenues over (under) expenditures
$ -
$ -
$ -
$
13
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT RK
Year Ended September 30, 2003
Balance
Balance
October 1,
September 30,
2002
Additions
Deductions
2003
Assets:
Cash and short-term investments
$ 4,021,867
$ 46,472,281
$ 46,512,182
$ 3,9131,866
Due from others
6,092
90,390
88,151
8,331
Due from other governmental agencies
9,057
10,818
8,047
1_1,82 8
Total assets
$ 4,037,016
$ 46,573,489
$ 46,608,380
$ 4,002,125
Aff-iff M-
Due to others
$ 2,941,894
$ 6,027,863
$ 6,460,822
$ 2,508,935
Due to Board of County Commissioners
410,886
4,950,300
4,920,100
441,086
Due to other governmental agencies
_gL84,236
35,595,326
35,227,458
1,052,104
Total liabilifies.
$ 4,037,016
$ 46,573,489
$ 46,608,380
$ 4,002J25
14
t I jai I I Rkl
E � : 4
To the Monorable Danny L. Kolhage,
Clerk of the Circuit Court of Monroe County, Florida,
We have audited the financial statements of the Monroe County, Florida Clerk of the
Circuit Court (the "Clerk") as of and for the year ended September 30, 2003, and have
issued our report thereon dated January 22, 2004. 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.
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, 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 that are required to be reported
under Government Auditing Standards.
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 oi
expressing our opinion on the financial statements and not to provide assurance on the
internal control over financial reporting. Our consideration of the internal control over
financial reporting would not necessarily disclose all matters in the internal control over
financial reporting. that might be material weaknesses. A material weakness is a
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 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
intemal control over financial reporting and its operations that we consider to be
15
material weaknesses. However, we noted other matters involving the internal control
over financial reporting, which we have communicated to management of the Clerk in a
separate letter dated January 22, 2004.
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.
0
ffilz'e'aglor.' IIVIAIIPIM�-
iN
To the Honorable Danny L. Kolhage
Clerk of the Circuit Court Monroe County, Florida:
We have audited the financial statements of the Monroe County, Florida Clerk of t"
Circuit Court (the "Clerk"), as of and for the year ended September 30, 2003, and ha
issued our report thereon dated January 22, 2004. 1
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
Govemment Auditing Standards, issued by the Comptroller General of the United
States. We have issued our Independent Auditors' Report on Compliance and on
Internal Control over Financial Reporting based on an audit of financial statements
performed in accordance with Govemment Auditing Standards, dated January 22, 2004,
and it 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. Those rules (Section 10.554(l)(g)l.a.) require that we address in the
management letter, if not already addressed in the auditors' report on compliance and
internal controls, whether or not inaccuracies, shortages, defalcations, fraud, and/or
violations of laws, rules, regulations, and contractual provisions reported in the
preceding annual financial audit report have been corrected. There were no such
matters reported in the preceding annual financial audit.
The Rules of the Auditor General (Section 10.554(l)(g)l.b.) require that we address in
the management letter, if not already addressed in the auditors' report on compliancz.
and internal controls, whether or not recommendations made in the preceding annual
financial audit report have been followed. There were no recommendations made in the
preceding year's annual financial audit report.
The Rules of the Auditor General (Section 10.554(l)(g)2.) state that a management
letter shall have a statement as to whether or not the Clerk complied with Section
218.415, Florida Statutes, regarding the investment of public funds. In connection with
our audit of the financial statements of the Clerk, the results of our tests did not indicate
that the Clerk was in noncompliance with Section 218.415 regarding the investment of
public, funds.
17
The Rules of the Auditor General (Section 10.554(l)(g)3.) require disclosure in the
management letter of any recommendations to improve the Clerk's management,
accounting procedures, and internal controls. There were no recommendations in
connection with the fiscal 2003 financial statement audit.
The Rules of the Auditor General (Section 10.554(l)(g)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) other inaccuracies, shortages,
defalcations, and instances of fraud discovered by, or that come to the attention of, the
auditor. There were no such matters noted.
The Rules of the Auditor General (Section 10.554(l)(g)5.) also require that the name or
official title and legal authority for the primary government and each component unit of
the reporting entity be disclosed in the management letter, unless disclosed in the notes
to the financial statements. The Clerk is a separately elected county official established
pursuant to the Constitution of the State of Florida. There are no component units
rel9te4 to tWe Cler�.
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