Fiscal Year 2000MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
XEMP & GREEN, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
CONTENTS
ndependent Auditors' Report
'inancial Statements:
Balance Sheet
Statement of Revenues and Expenditures - Budget and Actual -
General Fund
Notes to Financial Statements
,upplemental Schedule:
Statement of Changes in Assets and Liabilities -
Agency Fund
!ther Reports:
Independent Auditors' Report on Compliance and on
Internal Control over Financial Reporting
Independent Auditors' Management Letter
Paqes
1-2
3
4
5-9
10
11-12
13-14
WM. O. KEMP, C.P.A.
MARVA E. GREEN, C.P.A.
KEMP I& GREEN, P.A
Certified Public Accountants
1438 KENNEDY DRIVE
P. O. BOX 1529
KEY WEST, FLORIDA 33041-1529
(305) 294-2581
FAX # (305) 294-4778
INDEPENDENT AUDITORS' REPORT
Mr. Danny L. Kolhage
Clerk of the Circuit Court
Monroe County, Florida
MEMBER OF AMERICAN INSTITUTE
AND FLORIDA INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
We have audited the financial statements of the -Clerk of the Circuit Court of
Monroe County, Florida as of September 30, 2000 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 generally accepted auditing
16 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 non expendable trust funds in conformity with 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, 2000 and the results of
its operations for the year then ended in conformity with 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
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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 February 23, 2001 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.
4w•�� V
Kemp & Green, P.A.
Certified Public Accountants
February 23, 2001
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MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
BALANCE SHEET
SEPTEMBER 30, 2000
Governmental Fiduciary
Fund Tvpe Fund T.ype
General Agency
Assets:
Cash and Investments
Accounts Receivable
Due from Other Governments
Total Assets
Liabilities:
Due to Others
Due to Other Governments
Total Liabilities
a - $ 2,501,717
22,854
35,313
$ 2.559.884
$ - $ 1,216,125
1,343,759
2,559,884
The accompanying notes are an integral part
of these financial statements.
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MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
STATEMENT OF REVENUES AND EXPENDITURES -
BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Board of County Commissioners $ 3,015,560 $ 2,637,211 $ (378,349)
Charges for Services 1,274,000 1,502,784 228,784
Interest Income 19,174 19,174
Total Revenues
Expenditures:
Current:
General Government:
Personal Services
Operating Expenses
Capital Outlay
Total Expenditures
Excess of Revenues
Over Expenditures
4,289,560 4,159,169 130,391
3,438,296
703,625
147,639
4.289.560
3,445,128
658,956
55,085
4,159,169
The accompanying notes are an integral part
of these financial statements.
-4-
(6,832)
44,669
92,554
130,391
MONROE COUNTY, FLOR
IDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
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 Entit - 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.
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.
[ s
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MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
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 by appropriations in
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, 2000 was
$355,242.
NOTE 2 - CASH AND INVESTMENTS
Cash at September 30, 2000 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.
MONROE COUNTY, FLORIDA
t CLERK OF THE CIRCUIT COURT
■
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
1 NOTE 2 - CASH AND INVESTMENTS (Continued)
Demand Deposits $ 2,057,563
Amount Invested in Florida State
Board of Administration Pooled Cash 444,154
$ 2.501217
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, 2000, 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
11% of the SBA's portfolio at September 30, 2000. The SBA met the criteria to
be "2A-7Like" as defined in GASB 31 at September 30, 2000. Therefore,. the
investment was valued at amortized cost .and the fair value at September 30,
2000 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 591,900 full-time employees of
various governmental units within the State of Florida.
The System provides for
vesting of benefits after
10 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.
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MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
1 NOTE 3 - RETIREMENT PLAN (Continued)
The Clerk has no responsibility 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, 9.15%, special risk employees 20.29%
i and elected officials, 16.99%. The Clerk'.s contributions made during the
years ended September 30, 2000, 1999 and 1998 were $291,100, $417,000 and
$453,00.0, 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.
iRental expense for the current year was approximately $37,400.
1 NOTE 5 - RISK MANAGEMENT
The Clerk is exposed to various risks of loss related to tort; theft of,
damage to, and destruction of assets; errors and omissions; injuries to
employees; and natural disasters. The Clerk participates in the coverage
provided by the Board of County Commissioners of Monroe County 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
t $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
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.
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MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
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.
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MONROE COUNTY, FLORIDA
CLERK OF THE CIRCUIT COURT
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES -
AGENCY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Balance
Balance
1999
Additions
Deductions
2000
Assets:
Cash and Investments
$ 2,440.651
$ 39,793,136
$ 39,732,070
$ 2,501,717
Accounts Receivable
8,737
164,312
150,195
22.854
Due from Other Governments
70,706
25,519
60,912
35,313
Liabilities:
Due to Others $ 1,388.682 $ 18,265.933 $ 18,438,490 $ 1,216,125
Due to Other Governments 1,131,412 21,717,034 21,504,687 1,343,759
S 2.520 094 $ 39.982.967 1 39,243,177 E 2
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WM. O. KEMP, C.P.A.
MARVA E. GREEN, C.P.A.
KEMP GREEN, P.A.
Certified Public Accountants
1438 KENNEDY DRIVE
P. O. BOX 1529
KEY WEST, FLORIDA 33041-1529
(305) 294-2581
FAX # (305) 294-4778
MEMBER OF AMERICAN INSTITUTE
AND FLORIDA INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
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, 2000, and have issued our report thereon dated February 23, 2001. We
conducted our audit in accordance with 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
Government Auditing 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
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
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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.
Kemp & Green, P.A.
Certified Public Accountants
February 23, 2001
C
WM. O. KEMP, C.P.A.
MARVA E. GREEN, C.P.A.
KEMP & GREEN, P.A.
Certified Public Accountants
1438 KEN NEDY DRIVE
P. 0. BOX 1529
KEY WEST, FLORIDA 33041-1529
(305) 294-2581
FAX # (305) 294-4778
INDEPENDENT AUDITORS' MANAGEMENT LETTER
Mr. Danny L. Kolhage
Clerk of the Circuit Court
Monroe County, Florida
MEMBER OF AMERICAN INSTITUTE
AND FLORIDA INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
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, 2000, 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, 2000
There were no recommendations and suggested accounting procedures as outlined
in the Management Letter for the year ended September 30, 1999.
Current Year Findings
None
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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
f
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 has complied with Section 28.24(15)(d), Florida Statutes, regarding
the collection and use of Public Records Modernization Trust Fund moneys.
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.
Kemp & Green, P.A.
Certified Public Accountants
February 23,-2001