Loading...
Fiscal Year 2001MONROE COUNTY. FLORIDA CLERK OF THE CIRCUIT COURT FINANCIAL STATEMENTS SEPTEMBER 30, 2001 ■ MARVA GREEN P.A..INC. CERTIFIED PUBLIC ACCOUNTANTS CONTENTS Independent Auditors' Report Financial Statements: Balance Sheet Statement of Revenues and Expenditures - Budget and Actual _- General Fund Notes to Financial Statements Supplemental Schedule: Statement of Changes in Assets and Liabilities Agency Fund Other Reports: Independent Auditors' Report on Compliance and on Internal Control over Financial Reporting Independent Auditors' Management Letter Pages 1-2 3 4 5-9 10 11-12 13.14 MARVA GREEN, P.A. MARIO RODRIGUEZ, P.A. Certified Public Accountants Members American Institute and Florida Institute of Certified Public Accountants P. O. Box 1529 3132 Northside Dr., Suite 101 Tel. (305) 294-2581 Key West, FL 33041-1529 Fax (305) 29"778 INDEPENDENT AUDITORS' REPORT Mr. Danny L. Kolhage Clerk of the Circuit Court Monroe County, Florida We have audited the financial statements of the Clerk of the Circuit Court of Monroe. County, Florida as of September 30, 2001 and for the year then ended, listed in the accompanying table of contents. These financial statements are the responsibility of the Clerk of the Circuit Court. Our responsibility is to express an opinion on these,financial statements based on our audit. We conducted our audit in accordance -with U.S. generally' accepted auditing 9e Y P 9 standards and 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 opinion. As discussed in Note 1, the financial statements present only the Clerk and are not intended -to present fairly the financial position of Monroe County, Florida and the results of operations and cash flows of its proprietary fund types and nonexpendable trust funds in conformity with U.S. generally accepted accounting principles. In our. opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Clerk of the Circuit Court of Monroe County, Florida as of September 30, 2001 and the results of its operations for the year then ended in conformity with U.S. generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental information listed in the accompanying table of contents is presented for purposes of additional t 1- ■ analysis and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated April 16, 2002 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, and grants That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Marva Green P.A., Inc. Certified Public Accountants April 16, 2002 -2- MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT BALANCE SHEET SEPTEMBER 30. 2001 Governmental Fiduciary Fund Type fund Type General Agency Assets: Cash and Investments $ - $ 2.737,167 Accounts Receivable - 5,228 Due from Other Governments - 2,323 Total Assets �_ - $ 2.744.718 Liabilities: Due to Others E - $ 1,390,344 Due to Other Governments - 1,354,374 Total Liabilities 2,744.718 The accompanying notes are an integral part of these financial statements. 3 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2001 Variance Favorable Budget Actual (Unfavorable) Revenues: Board of County Commissioners $ 3,468,672 E 2,418,777 t (1,049,895) Charges for Services 1,169,500 1.631,761 462,261 Interest Income - 14,,069 14,069 Total Revenues 4,638,172 4,064,607 (573,565) Expenditures: Current: General Government: Personal Services 3,786,550 3,160,058 626,492 Operating Expenses 714,722 528,352 186,370 Capital Outlay 136,900 376,197 (239,297) Total Expenditures 4,638,172 4,064,607 573,565 Excess of Revenues Over Expenditures t - t - The accompanying notes are an integral part of these financial statements. -4- MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30. 2001 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting principles and policies used in the preparation of these financial statements. Reporting Entity - The Monroe County Clerk of the Circuit Court is a separate 'Constitutional Officer as provided by the laws of the State of Florida. For financial reporting purposes, it is deemed to be part of the County's primary government and therefore is included within the County's funds in the Monroe County Comprehensive Annual Financial Report. The Monroe County Finance Department maintains the accounting system for the Clerk's general fund, which is included in the General Fund of the Monroe County, Florida Board of County Commissioners. Basis of Presentation - These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by the Governmental. Accounting Standards Board. The Clerk of the Circuit Court utilizes the following fund types and account groups: Governmental Fund Type: The General Fund - is used to account for all revenue and expenditures applicable to the general operations of the Clerk of the Circuit Court that are not required either legally or by generally accepted accounting principles to be accounted for in another fund. 1 Fiduciary Fund Type: The Agency Fund - is custodial in nature and does not involve measurement of results of operations (assets equal liabilities). The Agency Fund is merely a clearing account for assets held by the Clerk of the Circuit Court as an agent for individuals, private organizations, ,other governments or other funds. Basis of Accounting - The modified accrual basis of accounting is followed by the General Fund. Under the modified accrual basis of accounting, revenues are recorded when received or when susceptible to accrual, that is measurable and available to finance the Clerk of the Circuit Court's operations. -5- MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Expenditures are recorded when the liability is incurred except for accumulated sick and vacation pay which is not recorded as an expenditure. Budgets are prepared on the modified accrual basis. Budgetary Requirement - Expenditures are controlled b appropriations in Pe Y accordance with the budget requirements set forth in the Florida_ Statutes. During the year, the Office of Management and Budget acts on intradepartmental budget changes that do not alter the total revenue or expenditures budgeted to a cost center. A cost center represents a particular area of operations or a department. All other budget changes (whether they are transfers between cost centers or alterations of total revenues and expenditures in a fund) are approved by the Board. Supplemental appropriations were necessary and the budgetary data presented herein was amended by the Clerk during the year in a legally permissible manner. General Fixed Assets - The tangible personal property used by the Clerk of the. Circuit Court in its operations is shown in the General Fixed Assets Account Group of the Board of County Commissioners. In addition, the office space. payroll processing services, and certain other expenditure items used in the Clerk of the Circuit Court's operations are.provided at no cost by the Board of County Commissioners. Compensated Absences - The Clerk's accrued compensated absences are included in the Long Term Debt Group of the Board of County Commissioners. The amount of the Clerk's accrued compensated absences as of September 30, 2001 was ■ $378,879. NOTE 2 - CASH AND INVESTMENTS Cash 'at September 30, 2001 consists of interest bearing deposits. Demand deposits are fully insured in accordance with Florida Statute 280, which established the multiple financial institution collateral pool. Legally permissible investments are defined by Florida Statue .125.31 and primarily consist of Federal and State Securities. -6- MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2001 NOTE 2 - CASH AND INVESTMENTS (Continued) Demand Deposits Amount Invested in Florida State Board of Administration Pooled Cash $ 2.168.520 568,647 S 2,737,167 The Clerk invests funds throughout the -year with.the Local Government Surplus Funds Trust Fund (SBA), an investment pool administered by the State Board of Administration, under the regulatory oversight of the State of Florida. Throughout the year and as of September 30,'2001, the SBA contained certain floating and adjustable rate securities which were indexed based on the prime rate and/or one and three 'month LIBOR rates. These investments represented 1.04 of the SBA's portfolio at September 30, 2001. The SBA met the criteria to be "2A-7Like" as defined in GASB 31 at September 30, 2001. Therefore, the investment was valued at amortized cost and the fair value at September 30, 2001 was the account balance at that time'. NOTE 3 - RETIREMENT PLAN Substantially all full-time Clerk employees are participants in the Florida Retirement System "the System", a multiple -employer, cost -sharing public retirement system. The System, which is controlled by the State Legislature and administered by the State of Florida, Department of Administration, Division of Retirement, covers approximately 612,300 full-time employees of various governmental units within the State of Florida. The System provides for vesting of benefits after 6 years of 'creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with 10 or more years of service. Early, retirement is available after 10 years of service with a 5% reduction of benefits for each year prior to the normal retirement age. Retirement benefits are based upon age, average compensation and years -of -service credit where average compensation is computed as the average of an individual's five highest years of earnings. Employees are not required to contribute to the System. -7- MONROE COUNTY. FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2001 f NOTE 3 - RETIREMENT PLAN (Continued) The Clerk hasnoresponsibility to the System other than to make the periodic payments required by state statutes. The Florida Division of Retirement issues a publicly available financial report that includes financial statements and required supplementary information for the System. The report may be obtained by writing to Florida Division of Retirement, 2639 Monroe Street, Building C. Tallahassee, FL 32399-1560. Participating employer contributions are based upon state-wide rates 'established by the State of Florida. These rates are applied to employee salaries as follows: regular employees. 7.30t, special risk employees 18.44X and i elected officials, 15.14. The Clerk's contributions made during the years ended September 30, 2001, 2000 and 1999 were $267,100, $291.100 and $41.7,000, respectively, equal to the actuarially determined contribution requirements for each year. NOTE 4 - LEASE COMMITMENTS The Clerk pays rent under cancelable operating leases for office equipment. Rental expense for the current year was approximately $45.200. NOTE 5 - RISK MANAGEMENT The Clerk is exposed to various risks of Loss related to tort: theft of, damage to, and destruction of assets; errors and omissions; injuries to employees: and natural disasters. The Clerk in the coverage participates provided by the Board of County Commissioners of Monroe County for Worker's Compensation, Group Insurance, and Risk Management internal service funds. Under these programs, the Worker's Compensation Fund provides $250,000 coverage per claim for regular employees. The Group Insurance Fund provides coverage up to $85.000 for each medical claim. Risk Management provides $100,000 for each general liability claim and $100,000 for most property damage claims. Windstorm, Flood and Property Damage insurance excess coverage varies by individual property. The County purchases commercial insurance for claims in excess of coverage provided by the funds and for all other risks of doss. 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. -8- MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2001 NOTE 6 - DEFERRED COMPENSATION PLAN The Clerk of the Circuit Court offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available.to all Clerk of the Circuit Court employees,- permits them to defer a portion of their salary until future years. Participation in the Plan is optional. The deferred compensation is not available to employees until termination, retirement, death. or unforeseeable emergencies. W MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - AGENCY -FUND FOR THE YEAR ENDED SEPTEMBER 30. 2001 Balance Balance 2000 Additions Deductions 2001 Assets: Cash and Investments $ 2.501.717 $ 30.038.950 $ 29.803.500 $ 2.737.167 Accounts Receivable 22.854 81.358 98.984 5.228 Due from Other. Governments 35.313 1.215 34.205 2.323 1 2� 559.884 129,12 1 29.936.689 1 2.744.718 Liabilities: Due to Others Due to Other Governments $ 1.216.125 $ 6.539.824 $ 6.365,605 $ 1.390.344 1.343.759 23.581.699 23.571.084 1.354.374 2,559,884 $ 30,121,523 1 29,936,689 $ 2,744,718 -10- MARVA GREEN, P.A. MARIO RODRIGUEZ, P.A. Certified Public Accountants Members American Institute and Florida Institute P. O. Box 1529 of certified Public Accountants 3132 Northside Dr.. Suite 101 Tel. (305) 294-2581 Key West, FL 33041-1529 Fax (305) 294-4778 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING Mr. Danny L. Kolhage Clerk of the Circuit Court Monroe County, Florida We have audited the financial statements of the Clerk of the Circuit Court of. Monroe County, Florida ("the Clerk") as of and for the year ended September 30. 2001, and have issued our report thereon dated April 16, 2002. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance 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, contracts and grants, 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 GovernmentAuditing Standards. 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 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 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 operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Clerk and members of County and State government and is not intended to be and should not be used by anyone other than these specified parties. ' Marva Green P.A., Inc. Certified Public Accountants 0 April 16, 2002 t e tf t 7 j I P. O. Box 1529 3132 Northside Dr., Suite 101 Key West, FL 33041-1529 MARVA GREEN, P.A. MARIO RODRIGUEZ, P.A. Certified Public Accountants Members American Institute and Florida Institute of Certified Public Accountants INDEPENDENT AUDITORS' MANAGEMENT LETTER Mr. Danny L. Kolhage Clerk of the Circuit Court Monroe County, Florida Tel: (305) 294-2581 Fax (305) 294-4778 In planning and performing our audit of the financial statements of the Clerk of the Circuit Court of Monroe County, Florida ("the Clerk") for the year ended September 30, 2001. we considered the Clerk's internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements. Although our audit was not designed to provide assurance on internal control, we noted certain matters involving internal control and its operation, and are submitting for your consideration related recommendations designed to help the Clerk make improvements and achieve operational efficiencies. Our comments reflect our desire to be of continuing assistance to the Clerk. Reported in Prior Year's Management Letter, Not Implemented as of September 30, 2001 There were no recommendations and suggested accounting procedures as outlined in the Management Letter for the year ended September 30, 2000. Current Year Findings None -13- Other Required Disclosures Marva Green was the auditor in charge for the audit of the Clerk. We attest that the auditor in charge met the educational requirements pursuant to Chapter 11.45, Florida Statutes. The Clerk was not in a state of financial emergency as described in Florida Statutes, Section 218.503(1). We have reviewed the annual report filed with the Department of Banking and Finance for Monroe County, Florida pursuant to Section 218.32, Florida Statutes. This report is in agreement with the annual audit report which incorporates the financial statements of the Clerk of the Circuit Court of Monroe County, Florida. ' The, Clerk was in compliance with the requirements of Florida q Statute 218.415 concerning local government investment policies. ■ This report is intended solely for the information and use of the Clerk and members of County and State government and is not intended to be and should ■ not be used by anyone other than these specified parties. ■ Marva Green P.A., Inc. Certified Public Accountants April 16. 2002 ■ I -14-