Fiscal Year 2016MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
FINANCIAL STATEMENTS
As of and for the Year Ended September 30, 2016
And Report of Independent Auditor
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MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
TABLE OF CONTENTS
REPORT OF INDEPENDENT AUDITOR 1 - 2
FINANCIAL STATEMENTS
Balance Sheet - Governmental Funds 3
Statement of Revenues, Expenditures and
Changes in Fund Balance - Governmental Funds-------------------------------------------------------------------------------- 4
Statement of Fiduciary Assets and
Liabilities- Agency Fund .................................................................................................................... 5
Notes to Financial Statements 6 - 12
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures -
Budget to Actual - General Fund ....................................................................................................... 13
Schedule of Revenues and Expenditures —
.... Budget to Actual — Special Revenue Court Related Fund -------------------------------------------------------------------- 14
Schedule of Revenues and Expenditures —
.... Budget to Actual — Special Revenue Records Modernization Fund ------------------------------------------------------ 15
SUPPLEMENTARY INFORMATION
Statement of Changes in Assets and Liabilities -
.... Agency Fund .-----------------------------------------------------------------------------------------------------------------------------------16
SUPPLEMENTARY REPORTS
Report of Independent Auditor on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial
....Statements Performed In Accordance with Government Auditing Standards --------------------------------- 17 - 18
Independent Auditor's Management Letter --------------------------------------------------------------------------------------
19 - 21
Report of Independent Accountant on Compliance with Local Government
Investment Policies, Article V Requirements and Depository Requirements
of Sections 218.415, 28.35, 28.36 and 61.181, Florida Statutes-------------------------------------------------------- 22
101Cherry Bekaert
Report of Independent Auditor
To the Honorable Kevin Madok
Clerk of the Circuit Court of Monroe County, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of each major fund and the aggregate remaining fund
information of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk") as of and for the year ended
September 30, 2016, and the related notes to the financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of the
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Clerk's preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of each major fund and the aggregate remaining fund information of the Clerk as of September
30, 2016, and the respective changes in financial position thereof for the year then ended, in conformity with
accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared
solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity
with the Rules, the accompanying financial statements are intended to present the financial position and
changes in financial position of each fund of Monroe County, Florida that is attributable to the Clerk. They do not
purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2016,
and the changes in its financial position for the fiscal year then ended in conformity with accounting principles
generally accepted in the United States of America. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Required
Supplementary Information as listed in the table of contents be presented to supplement the financial
statements. Such information, although not a part of the financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
financial statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's responses to our
inquiries, the financial statements, and other knowledge we obtained during our audit of the financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Clerk's financial statements. The accompanying supplementary information as listed in the table of
contents is presented for purposes of additional analysis and is not a required part of the financial statements.
The accompanying supplementary information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the supplementary information is fairly stated, in all material respects,
in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 22, 2017 on
our consideration of the Clerk's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Clerk's internal control over financial reporting and compliance.
Orlando, Florida
February 22, 2017
FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2016
ASSETS
Assets
Cash and cash equivalents
Due from Board of County Commissioners
Due from other governmental agencies
Due from other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and accrued liabilities
Due to Board of County Commissioners
Due to other governmental agencies
Due to other funds
Total liabilities
Fund Balances
Restricted
Total liabilities and fund balances
Major Funds
Court Records
General Related Modernization
Fund Fund Fund
Totals
$ 954,161 $ 517,651 $ 2,416,707 $ 3,888,519
- 1,266 - 1,266
35,953 131,387 - 167,340
- - 48,794 48,794
$ 990,114 $ 650,304 $ 2,465,501 $ 4,105,919
$ 158,148 $ 291,377 $ - $ 449,525
820,238 297,375 - 1,117,613
11,728 12,758 - 24,486
990,114 650,304 - 1,640,418
- - 2,465,501 2,465,501
$ 990,114 $ 650,304 $ 2,465,501 $ 4,105,919
See notes to financial statements. 3
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
YEAR ENDED SEPTEMBER 30, 2016
Revenues
Intergovernmental - BOCC
Charges for services
Fines and forfeitures
Intergovernmental - other
Interest income
Miscellaneous
Total revenues
Expenditures
Current
General government
Salaries and benefits
Operating
Court related
Salaries and benefits
Operating
Capital outlay
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources and (uses)
Transfer to Board of County Commissioners
Excess of revenues and other financing
sources under expenditures and other uses
Fund balances, beginning of year
Fund balances, end of year
Major Funds
Court
Records
General
Related
Modernization
Fund
Fund
Fund
Totals
$ 2,866,791
$ 650,141
$ -
$ 3,516,932
805,564
998,109
279,893
2,083,566
-
1,248,534
164,351
1,412,885
90,501
593,254
-
683,755
6,138
2,537
15,308
23,983
1,996
1,554
3,550
3,770,990
3,494,129
459,552
7,724,671
2,464,080 2,464,080
487,497 487,497
2,773,414
- 2,773,414
-
426,348
623,784 1,050,132
4,276
-
- 4,276
2,955,853
3,199,762
623,784 6,779,399
815,137
294,367
(164,232) 945,272
(815,137)
(294,367)
(1,109,504)
(164,232) (164,232)
2,629,733 2,629,733
$ $ $ 2,465,501 $ 2,465,501
See notes to financial statements. 4
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUND
SEPTEMBER 30, 2016
Asset
Cash and cash equivalents $ 4,548,453
Due from others 5,235
Due from other funds 84
Due from other governmental agencies 400
Total assets $ 4,554,172
Liabilities
Due to others $ 3,612,885
Due to Board of County Commissioners 102,554
Due to other governmental agencies 838,733
Total liabilities $ 4,554,172
See notes to financial statements. 5
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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 financial statements
do not purport to reflect the financial position or the results of operations of Monroe County, Florida (the
"County") taken as a whole. The financial statements of the Clerk have been prepared in accordance with the
accounting principles and reporting guidelines established by the Governmental Accounting Standards Board
("GASB").
Entity status for financial reporting purposes is governed by Statement No. 14, as amended. Although the
Clerk's Office is operationally autonomous and legally separate from the Board, it does not hold sufficient
corporate powers of its own to be considered a legally separate entity for financial reporting purposes.
Therefore, under GASB guidelines, 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 as three governmental
funds and a fiduciary fund.
General Fund - The General Fund is used to account for all revenues and expenditures applicable to the
general operations of the Clerk.
Court Related Fund - A special revenue fund is used to account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditures for specified purposes other than debt
service or capital projects. The Court related fund is a special revenue fund created to account for and
report State and local funding restricted for the expenditure of court functions. Any excess funding over
actual expenditures is returned to either the Florida Department of Revenue ("DOR") or the Monroe County
Board of County Commissioners (the "Board"), depending on where funding originated.
Records Modernization Fund - The Records Modernization Fund is a special revenue fund used to account
for and report recording fees restricted for records modernization and court technology as specified in
Florida Statutes 28.24(12)(d)(e). Pursuant to Florida Statutes 28.37(5), 10% of all court -related fines
collected by the Clerk shall be deposited in the Clerk's Modernization Trust Fund for court -related
operational needs and program enhancements.
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 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, which require the Clerk to only present fund financial statements.
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, to be
available and thus recognizes them as revenues of the current year. 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.
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
Note 1—Summary of significant accounting policies (continued)
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 as of September
30 each year is paid to the DOR's Clerks' Trust Fund. Any excess of non -court related revenue over non -court
related expenditures is reflected as a liability to the Board.
Effective July 1, 2004, as a result of Revision 7 to Article V of the Constitution of the State of Florida, the passage of
Senate Bill 2962 and the revision of numerous Sections of Florida Statutes (collectively Article V), the Clerk became
an entirely fee -based Constitutional Officer.
Effective July 1, 2009, as a result of the passage of Senate Bills 2108 and 1718, the Clerk became part of the State
appropriation process, wherein the Clerk receives a predetermined share of a statewide appropriation to all State of
Florida Clerks of Court. This appropriation is accounted for as intergovernmental revenue.
Effective July 1, 2013, as a result of the passage of Senate Bill 1512, the Clerk returned to being an entirely fee -
based Constitutional Officer. In accordance with this Bill, fee revenue began being recognized effective June 1,
2013.
The Clerk's operations are segregated between court -related and non -court -related activities as defined in Article V.
Any excess of court -related revenue over court -related expenditures as of September 30 each year is paid to DOR.
Any excess of non -court -related revenue over non -court -related expenditures is reflected as a liability to the Board.
Fund Balances Presentation - The Records Modernization Fund balance of the governmental funds is classified
as restricted. This classification includes amounts that can be spent only for specific purposes because of
constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditor,
grantors, and contributors, or the laws or regulations of other governments.
Budgetary Requirements - Expenditures are controlled by appropriations in accordance with the budgetary
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 months ended September 30, 2016. The Clerk is not required to submit its non -court
related activities budget for approval. 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 insured by the
Federal Deposit Insurance Corporation ("FDIC") or covered by State of Florida collateral pool and cash on hand for
operations.
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 Board provides administrative office space and certain other expenditures used by the Clerk at no
charge.
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
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 financial
resources to liquidate this obligation. The obligation for compensated absences is accrued in the government -
wide financial statements of the County. A summary of activity for the Clerk's compensated absences obligation
is as follows:
Balance, October 1, 2015 $ 471,143
Earned 450,024
Used 479,635
Balance, September 30, 2016 $ 441,532
Use of Estimates - The preparation of financial statements requires management to make use of estimates that
affect reported amounts. Actual results could differ from estimates.
Note 2—Deposits and investments
As of September 30, 2016, the Clerk's cash and cash equivalents are held in demand deposits with a carrying
amount of $8,436,972 and a bank balance of $8,671,117.
The Clerk places its cash and cash equivalents on deposit with financial institutions in the United States, which
are insured by the FDIC or covered by the State of Florida collateral pool, a multiple financial institution pool with
the ability to assess its members for collateral shortfalls if a member institution fails. Cash on hand amounted to
$1,500.
The Clerk follows Florida Statutes for its investment policy, which authorizes investments in certificates of
deposit, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund
administered by the Florida State Board of Administration, and obligations of the U.S. Government and
government agencies unconditionally guaranteed by the U.S. Government.
Note 3—Interfund receivables and payables
Interfund receivables and payables at September 30, 2016 consist of the following:
Court Related Fund
Records Modernization Fund
Due From
Other Funds
48.794
Due To
Other Funds
48,794
$ 48,794 $ 48,794
The amounts are due to the Records Modernization Fund from the Court Related Fund per Florida Statute
requirements.
N.
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
Note 4—Fund balance presentation
The restrictions placed on Clerk Records Modernization fund balance are described as follows:
Public Records Modernization Trust - Florida Statute 28.24(12)(d) requires the collection of an additional
service charge to be paid to the Clerk to be used exclusively for equipment, maintenance of equipment,
personnel training, and technical assistance in modernizing the public records system of the Clerk's Office.
Public Records Court Technology Trust - Florida Statute 28.24(12)(e)(1) requires the collection of an
additional service charge to be paid to the Clerk to be used exclusively for the operation and support of an
integrated computer system for the judicial agencies and to support the operations and maintenance of the
state court system.
10% Court -Related Fines - Florida Statute 28.37(5) requires the retention of 10% of court -related fines
collected by the Clerk's Office. The fines are to be used exclusively for additional Clerk court -related
operational needs and program enhancements.
Records Modernization restricted fund balances are as follows:
Public Records Modernization Trust $ 886,588
Public Records Court Technology 821,835
10% Court -Related Fines 757,078
Restricted Fund Balance $ 2,465,501
Note 5—Retirement system
Plan Description - The Clerk's employees participate in the Florida Retirement System ("FRS"). As provided
by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined
benefit plans administered by the Florida Department of Management Services, Division of Retirement,
including the FRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under
Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan")
alternative to the FRS Pension Plan, which is administered by the State Board of Administration.
As a general rule, membership in the FRS is compulsory for all employees working in a regularly established
position for a state agency, county government, district school board, state university, community college, or a
participating city or special district within the State of Florida. The FRS provides retirement and disability
benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Benefits are
established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to
the law can be made only by an act of the Florida Legislature.
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
Note 5—Retirement system (continued)
Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service
credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after
age 62 with at least six years of credited service, or 30 years of service regardless of age are entitled to a
retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five
highest years of salary, for each year of credited service. Vested members with less than 30 years of service
may retire before age 62 and receive reduced retirement benefits. Senior Management Service class members
who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age
are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation
based on the five highest years of salary for each year of credited service. Elected Officers' class members who
retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are
entitled to a retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges and justices) of their
final average compensation based on the five highest years of salary for each year of credited service.
Substantial changes were made to the Pension Plan during fiscal year 2011, affecting new members enrolled on
or after July 1, 2011 by extending the vesting requirement to eight years of credited service and increasing
normal retirement to age 65 or 33 years of service regardless of age. Also, the final average compensation for
these members is based on the eight highest years of salary.
Funding Policy - All enrolled members of the FRS Pension Plan are required to contribute 3.0% of their salary
to the FRS. In addition to member contributions, governmental employers are required to make contributions to
the FRS based on state-wide contribution rates. The employer contribution rates by job class for the periods
from October 1, 2015 through June 30, 2016 and July 1, 2016 through September 30, 2016, respectively, were
as follows: regular - 7.26% and 7.52%; county elected officers - 42.27% and 42.47%; senior management -
21.43% and 21.77%; and DROP participants - 12.88% and 12.99%. During the fiscal year ended September 30,
2016, the Clerk contributed to the plan an amount equal to 9.83% of covered payroll.
The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and is
administered by the Florida Department of Management Services, Division of Retirement. Eligible retirees and
beneficiaries receive a monthly health insurance subsidy payment of $5 for each year of creditable service, with a
minimum payment of $30 and a maximum payment of $150 per month. The HIS Plan is funded by required
contributions from FRS participating employees as set forth by the Florida Legislature, based on a percentage of
gross compensation for all active FRS members.
In addition to the above benefits, the FRS administers a Deferred Retirement Option Program ("DROP"). This
program allows eligible members to defer receipt of monthly retirement benefit payments while continuing
employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred
monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP
participants.
For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occurs at
one year of service. These participants receive a contribution for self -direction in an investment product with a third
party administrator selected by the State Board of Administration. Employer and employee contributions, including
amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part
on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment
Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the
same employer and employee contribution rates that are based on salary and membership class (Regular Class,
Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member
accounts, and the individual members allocate contributions and account balances among various approved
investment choices. Costs of administering the Plan, including the FRS Financial Guidance Program, are funded
through an employer contribution of 0.06% of payroll and by forfeited benefits of Plan members.
10
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
Note 5—Retirement system (continued)
The Clerk recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan, the HIS
Plan and the investment plan, amounting to $279,672, $51,754 and $34,179, respectively, for the fiscal year
ended September 30, 2016. The Clerk's payments for the Pension Plan and the HIS Plan after June 30, 2016,
the measurement date used to determine the net pension liability associated with the Pension Plan and HIS
Plan, amounted to $72,322 and $13,638, respectively. The Clerk is not legally required to and does not
accumulate expendable available resources to liquidate the retirement obligation related to its employees.
Accordingly, the net pension liability and associated deferred outflows and deferred inflows are presented on the
government -wide financial statements of the County, following requirements of GASB Statement No. 68,
Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27, and GASB
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an
amendment of GASB Statement No. 68.
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. That report may be viewed on the Florida Department of Management Services website
located at www.dms.Myflorida.com/workforce operations/retirement/publications.
Note 6—Other postemployment benefit (OPEB) plan
The Board administers a single -employer defined benefits healthcare plan (the "Plan"). Florida Statutes
112.0801 requires the County to provide retirees and their eligible dependents with the option to participate in
the Plan if the County provides health insurance to its active employees and their eligible dependents. The Plan
provides medical coverage, prescription drug benefits, and life insurance to both active and eligible retired
employees. The Plan does not issue a publicly available financial report.
The Board 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 Board approves the rates for the coming calendar year for the retiree and County contributions.
Eligibility for postemployment participation in the Plan is limited to full-time employees of the County, and the
Constitutional Officers. Employees who retire as an active participant in the Plan and were hired on or after
October 1, 2001 may continue to participate in the Plan by paying the monthly premium established annually by
the Board. Employees who retire as an active participant in the plan, were hired prior to October 1, 2001, have
at least ten years of full-time service with the County, and meet the retirement criteria of the FRS, may maintain
their group health insurance benefits with Monroe County following their retirement provided they contribute a
premium of $5 per month for each year of creditable service with the FRS at time of retirement with Monroe
County and will pay at a minimum $50 per month up to the maximum of $150 per month. Retirees who have met
the requirements for early retirement, have not achieved age 60 and whose age and years of service do not
equal 70 (rule of 70) must pay the standard monthly premium until the age criteria or the rule of 70 is met. At
that time, the retiree's cost of participation will be $5 for each year of creditable service with the FRS at time of
retirement with Monroe County and will pay at a minimum $50 per month up to the maximum of $150 per month.
Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific
to those classes are met.
11
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
Note 6—Other postemployment benefit (OPEB) plan (continued)
The Board engages an actuarial firm on a biennial 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 Board. 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 7—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 for Workers' Compensation, Group Insurance, and Risk Management Internal Service Funds. Under
these programs, Workers' Compensation provides $500,000 coverage per claim for regular employees.
Workers' Compensation claims in excess of the self -insured coverage are covered by an excess insurance
policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $200,000
self -insured retention, and building property damage is covered for the actual value of the building with a
deductible of $50,000. Deductibles for windstorm and flood vary by location. Monroe County purchases
commercial insurance for claims in excess of coverage provided by the funds and for all other risks of loss.
Settled claims have not exceeded this commercial coverage in any of the past three years. The Clerk makes
payments to the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of
the amounts needed to pay prior and current year claims.
Note 8—Lease commitments
Operating leases — The Clerk leases various office equipment under cancelable arrangements accounted for
as operating leases. Total lease expenditures were $54,060 for the year ended September 30, 2016. The
following is a schedule of minimum future rent obligations under non -cancelable leases with terms in excess of
one year:
2017
2018
2019
Total
Note 9—Litigation
$ 6,055
3,096
1.032
10,183
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.
Note 10—Election
During the 2016 election cycle, Kevin Madok, CPA was elected as the Monroe County Clerk of the Circuit Court
& Comptroller. Clerk Madok replaced the Honorable Amy Heavilin who served as Clerk of Court & Comptroller
from November 20, 2012 through January 2, 2017. Clerk Madok was officially sworn in to serve his elected
four-year term as Clerk of the Circuit Court and Comptroller for Monroe County on January 3, 2017.
12
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET TO ACTUAL
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2016
General Fund
Variance
Original
Final
Positive
Budget
Budget
Actual
(Negative)
Revenues
Intergovernmental - BOCC
$ 2,863,249
$ 2,863,249
$ 2,866,791
$ 3,542
Charges for services
639,900
639,900
805,564
165,664
Intergovernmental - Other
-
-
90,501
90,501
Interest income
8,300
8,300
6,138
(2,162)
Miscellaneous
1,800
1,800
1,996
196
Total revenues
3,513,249
3,513,249
3,770,990
257,741
Expenditures
Current
General government
Clerk recording
449,273
369,273
293,217
76,056
Clerk information systems
589,832
589,832
341,880
247,952
Clerk finance
1,985,857
2,065,857
1,911,836
154,021
Internal audit
325,993
325,993
300,795
25,198
Non -court records management
162,294
162,294
108,125
54,169
Total expenditures
3,513,249
3,513,249
2,955,853
557,396
Excess of revenues over expenditures
-
-
815,137
815,137
Other financing sources and uses
Contingency
-
-
Transfer to Board of County Commissioners
(815,137)
(815,137)
Total other financing sources and uses
(815,137)
(815,137)
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
$
$
$
$
13
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGETTO ACTUAL
SPECIAL REVENUE COURT RELATED FUND
YEAR ENDED SEPTEMBER 30, 2016
Special Revenue
Court Related Fund
Variance
Original
Final
Positive
Budget
Budget
Actual
(Negative)
Revenues
Intergovernmental - BOCC
$ 650,141
$ 650,141
$ 650,141
$
Charges for services
863,100
863,100
998,109
135,009
Fines and forfeitures
1,581,026
1,581,026
1,248,534
(332,492)
Intergovernmental - other
489,406
489,406
593,254
103,848
Interest income
7,500
7,500
2,537
(4,963)
Miscellaneous income
2,200
2,200
1,554
(646)
Total revenues
3,593,373
3,593,373
3,494,129
(99,244)
Expenditures
Current
Court related
Clerk administration
205,213
225,213
220,931
4,282
Clerk records management
255,817
248,817
242,346
6,471
Clerk jury management
191,232
191,232
152,848
38,384
Clerk circuit court criminal
649,814
549,814
545,667
4,147
Clerk circuit court civil
348,620
508,620
500,648
7,972
Clerk court information systems
174,185
174,185
116,040
58,145
Clerk circuit court family
131,490
141,490
128,049
13,441
Clerk circuit court juvenile
86,629
86,629
60,485
26,144
Clerk circuit court probate
65,163
115,163
105,260
9,903
Clerk circuit court criminal
468,004
483,004
473,143
9,861
Clerk county court civil
197,690
209,690
200,359
9,331
Clerk county court traffic
819,516
659,516
453,986
205,530
Total expenditures
3,593,373
3,593,373
3,199,762
393,611
Excess of revenues over expenditures
-
-
294,367
294,367
Other financing sources and uses
Transfer to Board of County Commissioners
(294,367)
(294,367)
Transfer to Florida Department of Revenue
Total other financing sources and uses (294,367) (294,367)
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
YEAR ENDED SEPTEMBER 30, 2016
Special Revenue
Records Modernization Fund
Variance
Original
Final
Positive
Budget
Budget Actual
(Negative)
Revenues
Charges for services
$ 150,000
$ 150,000 $ 279,893
$ 129,893
Fines
100,000
100,000 164,351
64,351
Interest income
2,800
2,800 15,308
12,508
Total revenues
252,800
252,800 459,552
206,752
Expenditures
Current
Court -related
Modernization trust
Clerk fines
Total expenditures
Excess of revenues over (under) expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
732,700
732,700
-
732,700
802,942
802,942
623,784
179,158
1,535,642
1,535,642
623,784
911,858
(1,282,842)
(1,282,842)
(164,232)
1,118,610
(1,282,842)
(1,282,842)
(164,232)
1,118,610
2,142,358
2,142,358
2,629,733
487,375
$ 859,516 $
859,516 $
2,465,501 $
1,605,985
15
SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
YEAR ENDED SEPTEMBER 30, 2016
Assets
Cash and cash equivalents
Due from other governmental agencies
Due to other funds
Due from others
Total assets
Liabilities
Due to others
Due to Board of County Commissioners
Due to other governmental agencies
Total liabilities
Balance
October 1, 2015
Additions
Deductions
Balance
September 30, 2016
$ 5,059,815
$
38,971,645
$
39,483,007
$
4,548,453
10,809
1,221
11,630
400
-
84
-
84
6,338
22,246
23,349
5,235
$ 5,076,962
$
38,995,196
$
39,517,986
$
4,554,172
$ 4,084,171
$
7,341,107
$
7,812,393
$
3,612,885
104,810
1,165,904
1,168,160
102,554
887,981
30,488,185
30,537,433
838,733
$ 5,076,962
$
38,995,196
$
39,517,986
$
4,554,172
W,
SUPPLEMENTARY REPORTS
101Cherry Bekaert
Report of Independent Auditor on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Honorable Kevin Madok
Clerk of the Circuit Court of Monroe County, Florida
We have audited, in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to the financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of each major fund and the aggregate
remaining fund information of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk") as of and for
the year ended September 30, 2016, and the related notes to the financial statements, and have issued our
report thereon dated February 22, 2017 for the purpose of compliance with Section 218.39(2), Florida Statutes
and Chapter 10.550, Rules of the Auditor General -Local Governmental Entity Audits.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Clerk's internal control over
financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances
for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Clerk's internal control. Accordingly, we do not express an opinion on the
effectiveness of the Clerk's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Clerk's financial
statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of the internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
17
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the Clerk's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Clerk's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Orlando, Florida
February 22, 2017
18
101Cherry Bekaert
Independent Auditor's Management Letter
To the Honorable Kevin Madok
Clerk of the Circuit Court of Monroe County, Florida
Report on the Financial Statements
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, 2016 and have issued our report thereon dated February 22, 2017.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of America;
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General.
Other Reports
We have issued our Report of Independent Auditor on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards, and Report of Independent Accountant on Compliance with Local Government
Investment Policies, Article V Requirements and Depository Requirements of Sections 218.415, 28.35, 28.36, and
61.181, Florida Statutes, regarding compliance requirements in accordance with Chapter 10.550, Rules of the
Auditor General. Disclosures in those reports, which are dated February 22, 2017, should be considered in
conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions
have been taken to address findings and recommendations made in the preceding annual financial audit report.
We have addressed the status of findings and recommendations made in the preceding annual financial report in
Appendix A attached to this letter.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for
the primary government and each component unit of the reporting entity be disclosed in this 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 related to the Clerk.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any
recommendations to improve financial management. See Appendix B for our recommendation. We did not audit the
Clerk's response to this matter, which is also provided in Appendix B, and, accordingly, we express no opinion on it.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of
contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on
the financial statements that is less than material but which warrants the attention of those charged with
governance. In connection with our audit, we did not have any such findings.
Purpose of This Letter
The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.550, Rules of
the Auditor General. Accordingly, this management letter is not suitable for any other purpose.
Orlando, Florida
February 22, 2017
19
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
MANAGEMENT LETTER COMMENTS (PRIOR YEAR) —APPENDIX A
Finding 2015-001 SUBSEQUENT DISBURSEMENT
Observation:
The Court Related Fund assets were understated and operating expenditures were overstated by $35,901 due
to an inadvertent yearend accrual which was a fiscal year 2016 expenditure. Management agreed and an
adjusting journal entry was posted in order to correct this misstatement.
Expenses and payables should be recorded to the fiscal year in which the expenses were incurred.
We recommend that the process for accruing invoices at year-end be reevaluated to ensure systematic errors
do not occur and that, although only one item was missed out of a large volume of transactions, diligence
continue to be enforced in the review of invoices for accruals.
Current Year Follow-up:
No errors were noted in the current year.
Finding 2015-002 — PRIOR YEAR ERROR
Observation:
Through current year reconciliation processes a prior year error was discovered by the Clerk staff which resulted
in the overstatement of cash and revenue of $14,185 in the prior year and an understatement of revenue of
$14,185 in the current year. Management deemed the effects of this error to be immaterial to the financial
statements taken as a whole and has passed on posting this entry.
We recommend the continued monitoring, reconciling and reviewing of accounts to reduce the risk of similar
errors in the future.
Current Year Follow-up:
No errors were noted in the current year
20
MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
MANAGEMENT LETTER COMMENTS (CURRENT YEAR) —APPENDIX B
Finding 2016-001 LATE SUBMISSION OF REPORTS
Observation:
During Article V testinq? for 2016, it was noted that the Q3 and Q4 Collections Rate Quarterly Reports were both
submitted past the 20t business day of the following month deadline. Q3 report (quarter ending June 30, 2016)
was submitted August 3, 2016. Q4 report (quarter ending September 30, 2016) was submitted November 3,
2016.
Recommendation:
We recommend that the Clerk implement a system with controls to ensure that all reports submitted to the FL
CCOC are submitted within required timeframes.
Management Response:
We agree with the audit recommendation. The delays in reporting the two Quarterly Collection Rate reports
during FY 2016 were primarily due to a new requirement imposed by the former Clerk whereby she required that
she review and approve all CCOC reports before submission. This resulted in the delays.
Finance staff maintain a calendar that notifies the staff accountant of impending due dates so the CCOC reports
are prepared, reviewed, and submitted by the required deadlines. In addition, the staff accountant maintains a
monthly checklist to track the status of monthly, quarterly, and annual reports. If the staff accountant is not in the
office, responsible staff is able to rely on the checklist to determine the status of reports and ensure that the
reports are submitted on a timely basis.
21
101Cherry Bekaert
Report of Independent Accountant on Compliance
With Local Government Investment Policies, Article V Requirements
and Depository Requirements of Sections 218.415, 28.35, 28.36 and 61.181, Florida Statutes
To the Honorable Kevin Madok
Clerk of the Circuit Court of Monroe County, Florida
Report on Compliance
We have examined the Monroe County, Florida Clerk of the Circuit Court's (the "Clerk's") compliance with the
local government investment policy requirements of Section 218.415, Florida Statutes, Article V requirements of
Sections 28.35 and 28.36, Florida Statutes, and depository requirements for alimony transactions, support,
maintenance and support payments of Section 61.181, Florida Statutes, for the year ended September 30,
2016. Management is responsible for the Clerk's compliance with those requirements. Our responsibility is to
express an opinion on the Clerk's compliance based on our examination.
Scope
Our examination was conducted in accordance with attestation standards established by the American Institute
of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Clerk's
compliance with those requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination
does not provide a legal determination on the Clerk's compliance with specified requirements.
Opinion
In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for the year
ended September 30, 2016.
Orlando, Florida
February 22, 2017
22