Fiscal Year 2006 i
MONROE COUNTY, FLORIDA
SHERIFF
Financial Statements
For the Year Ended
September 30, 2006
MONROE COUNTY, FLORIDA
SHERIFF
Table of Contents
Page
independent Auditors' Report___________________________ _ 2-3
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BASIC FINANCIAL STATEMENTS
Balance Sheet-Governmental Funds 4
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Statement of Revenues, Expenditures and Changes in Fund
Balances -Governmental Funds 5
Statement of Fiduciary Assets and Liabilities-Agency Funds.____________________________ _ 6
---------------------
Notes to Financial Statements 7- 13
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund
Balances-Budget and Actual -General Fund----------------------------------------------------------------------- 14
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual -Major Special Revenue Funds_____________________________________________ 15- 17
OTHER SUPPLEMENTARY INFORMATION
Combining Statement of General Fund by Service Area----------------------------------------------------------- 18
Non-Major Special Revenue Funds Description.____________-_ _____ 19
-------------------------------------------------- -
Combining Balance Sheet-Non-Major Governmental Funds -
Special Revenue Funds_______________ ________20-22
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Combining Statement of Revenues, Expenditures and Changes in Fund
Balances-Non-Major Governmental Funds-Special Revenue Funds_____________________________23-25
Schedule of Revenues, Expenditures and Changes in Fund
Balances-Budget and Actual--Non-Major Special Revenue Funds_________________________________26-33
Agency Funds Description.------------------------------------------------------------- --------------------------------------- 34
Combining Statement of Changes in Fiduciary Assets and Liabilities -
AII Agency Funds------------------------------- ------ ---- -----
-- -- - ------------------------------------------------------------
35
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report on Internal Control over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards----------------------------------------------------------36-37
Independent Auditors' Management Letter-------------------------------------------------------.................-•-•---38-40
Lei I Wallr
INDEPENDENT AUDITORS' REPORT
To the Honorable Richard Roth,
Sheriff of Monroe County, Florida
We have audited the accompanying financial statements of each major fund and the aggregate
remaining fund information of the Monroe County, Florida Sheriff(the "Sheriff') as of and for the
year ended September 30, 2006, which collectively comprise the Sheriff's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of
the Sheriffs management. 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
Auditng Standards issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
As discussed in Note 1, the accompanying financial statements were prepared for the purpose
of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General-Local Governmental Entity Audits, and are not intended to be a complete presentation
of the financial position of Monroe County, Florida, and the results of its operations and the cash
flows of its proprietary funds in conformity with accounting principles generally accepted in the
United States of America.
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 Monroe County, Florida Sheriff as of September 30, 2006, 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.
In accordance with Government Auditing Standards, we have also issued our report dated
January 26, 2007 on our consideration of the Sheriffs 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 intemal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
2
The budgetary comparison schedules on pages 14 through 17 are not a required part of the
basic financial statements but are supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures, which consisted
primarily of inquiries of management regarding the methods of measurement and presentation
of the required supplementary information. However, we did not audit the information and we
express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Sheriff's basic financial statements. The other supplementary
information listed on the table of contents is presented for purposes of additional analysis and is
not a required part of the basic financial statements. The other supplementary information has
been subjected to the auditing procedures applied by us in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than those
specified parties.
Orlando, Florida
January 26, 2007
3
BASIC FINANCIAL STATEMENTS
MONROE COUNTY,FLORIDA
SHERIFF
Balance Sheet-Governmental Funds
September 30,2006
Major Funds Non-Major Funds
Shared
HIDTA Asset Other
General Grants Grants Forfeiture Governmental Total
Assets
Cash and cash equivalents $ 1,721,198, $ 172,197 $ $4,903,867 $ 3,458,680 $10,255,942
Due from Board of County Commissioners 55,005 - - 796,144 851,149
Due from other funds 1,848,220 - 259,478 - 311,363 2,419,061
Due from other governmental units 20,497 1,955,994 889,274 - 16,377 2,882,142
Due from others 13,407 - - 50,442 63,849
Total assets $31658,327 $ 2,128,191 $ 1,148,762 $4,903,867 $ 4,633,006 $16,472,143
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 1,004,771 $ 1,564,700 $ $ 19,987 $ 162,089 $ 2,751,547
Accrued wages and benefits payable 1,094,135 147,977 - - 1,242,112
Due to Board of County Commissioners 991,462 109,506 - - 65,910 1,166,878
Due to other governmental units 38,400 160,328 - - 122,864 311,592
Due to other funds 529,559 153,955 889,274 266 839,839 2,412,893
Deferred revenue - 1,725 718,780 - 61,947 772,452
Total liabilities 3,858,327 2,128,191 1,608,054 20,253 1,242,649 8,657,474
Fund balances - - (459,302) 4,883,614 3,390,357 7,514,609
Total liabilities and fund balances $ 3,658,327 $2,128,191 $ 1,148,752 $4.903,867 $ 4,633,006 $16,472,143
The notes to the financial statements 4
are an integral part of this statement.
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MONROE COUNTY, FLORIDA
SHERIFF
Statement of Fiduciary Assets and Liabilities
Agency Funds
September 30, 2006
Civil Total
Process Bonds Inmate Agency
Assets
Cash and cash equivalents $ 14,026 $ 678,667 $ 57,707 $ 750,400
Total assets $ 14,026 $ 678,667 $ 57,707 $ 750,400
Liabilities
Accounts payable $ 1,728 $ - $ - $ 1,728
Due to Board of County Commissioners 4,815 - - 4,815
Due to other funds - - 6,168 6,168
Due to individuals 7,483 678,667 51,539 737,689
Total liabilities $ 14,026 $ 678,667 $ 57,707 $ 750,400
The notes to the financial statements 6
are an integral part of this statement.
MONROE COUNTY, FLORIDA
SHERIFF
Notes to Financial Statements
Year Ended September 30, 2006
Note 1 - Summary of significant accounting policies
Reporting entity - The Monroe County, Florida Sheriff (the "Sheriff') is a separately elected
county official established pursuant to the Constitution of the State of Florida. The Sheriffs
financial statements do not purport to reflect the financial position or the results of operations of
Monroe County, Florida (the"County")taken as a whole.
Entity status for financial reporting purposes is governed by Statement No. 14 and 39 of the
Governmental Accounting Standards Board (GASB). Although the Sheriff's Office is
operationally autonomous from the County, it does not hold sufficient corporate powers of its
own to be considered a legally separate entity for financial reporting purposes. Therefore, the
Sheriff is reported as a part of the primary government of Monroe County, Florida.
Measurement focus, basis of accounting, and financial statement presentation - The
Sheriff 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- Local Governmental Entity
Audits, which require the Sheriff to only present fund financial statements. The General Fund
and Special Revenue Funds are governmental funds that use the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized
when measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
The Sheriff reports the General Fund and Special Revenue Funds as govemmental funds and
Agency Funds as a fiduciary fund type. The General Fund is used to account for all revenues
and expenditures applicable to the general operations of the Sheriff. Special Revenue Funds
account for the proceeds and uses of specific revenue sources that are legally restricted or
committed to expenditures for specific purposes. Agency Funds are used to account for assets
held by the Sheriff as agent. Agency funds are custodial in nature and do not involve
measurement of results of operations.
The Sheriff reports the General Fund and the following three Special Revenue Funds as major
funds: HIDTA Grants, Grants, and Shared Asset Forfeiture. The HIDTA Grants Fund accounts
for the revenues and expenditures related to the ONDCP grants. The Grants Fund accounts for
receipts and disbursements related to various grants. The Shared Asset Forfeiture Fund
accumulates stipulated transfers from the Federal Forfeiture Fund and its investment income is
used to fund awards to non-profit organizations, as determined by a community board.
Transfers - The Sheriff transfers funds to administer certain Special Revenue Fund programs.
In addition, the extent to which General Fund and Fine and Forfeiture Fund revenues exceed
expenditures is reflected as transfers out to the Board of County Commissioners.
7
'--- MONROE COUNTY, FLORIDA
SHERIFF
r Notes to Financial Statements
Year Ended September 30, 2006
Note 1 - Summary of significant accounting policies (continued)
Budgetary requirements - Expenditures are controlled by appropriations in accordance with
the budget requirements set forth in the Florida Statutes. Budgets are administered for all funds
except for the Teen Court Fund and are prepared on a basis consistent with accounting
principles generally accepted in the United States of America.
Cash and cash equivalents- Highly liquid investments with maturities of 90 days or less when
purchased are considered cash equivalents. Included are investments in the State Board of
Administration Local Surplus Funds Investment Pool Trust Fund ("SBA"), a W-like investment
pool stated at share price, which is substantially the same as fair value.
Capital assets. - Capital assets are recorded as expenditures in the General Fund or the
Special Revenue Funds at the time of purchase and are capitalized at historical cost in the
government-wide financial statements of the County. Gifts or contributions and seized property
are recorded in the government-wide financial statements at fair market value at the time
received. In addition, the Board of County Commissioners provides at no cost the office space
and certain other expenditure items used in the Sheriffs operations.
Compensated absences - The Sheriff permits employees to accumulate earned but unused
vacation and sick pay benefits. The Sheriff is not legally required to and does not accumulate
expendable available financial resources to liquidate this obligation. The obligation is accrued in
the government-wide financial statements of the County.
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
Cash and cash equivalents at September 30, 2006 consist of the following:
Type - Credit Quality Rating Fair Value
Demand and time deposits NIA $ 10,866,418
SBA Unrated 139,924
$ 11,006,342
Demand and time deposits are fully insured by the Federal Deposit Insurance Corporation or
are covered by the State of Florida collateral pool, a multiple financial institution pool with the
ability to assess its members for collateral shortfalls if a member institution fails.
Florida Statutes and the Sheriff's investment policy authorize investments in certificates of
deposit, savings accounts, repurchase agreements, Local Government Surplus Funds Trust
Funds, and obligations of the U.S. government and government agencies unconditionally
guaranteed by the U.S. government.
8
MONROE COUNTY, FLORIDA
SHERIFF
Notes to Financial Statements
_ Year Ended September 30, 2006
Note 3- Capital assets
A summary of changes in the Sheriffs capital assets, presented in the govemment-wide
financial statements of the County, is as follows:
Balance Balance
10/01/2005 Additions Deductions 09/3012006
Buildings and improvements $ 2,440,102 $ 80,070 $ 23,653 $ 2,496,519
Equipment 25,422,536 6,713,401 2,067,263 30,068,674
Construction in process 29,825 245,427 29,825 245,427
$ 27,892,463 $7,038,898 $2,120,741 $-32,810,620
Accumulated depreciation $ 10,052,619 $2,681,172 $1,592,723 $ 11,141,068
Note 4- Long-term debt
The following is a summary of changes in the Sheriffs long-term debt for the year ended
September 30, 2006, presented in the govemment-wide financial statements of the County;
Capital.
Lease Compensated
Obligations Absences Total
Long-term debt, beginning of year $ 125,408 $ 3,060,835 $ 3,186,243
Additions - 521,439 521,439
Reductions (95,441) - (95,441)
Long-term debt, end of year $ 29,967 $ 3,582,274 $ 3,612,241
9
MONROE COUNTY, FLORIDA
SHERIFF
Notes to Financial Statements
Year Ended September 30, 2006
Note 4 - Long-term debt (continued)
The Sheriff has entered into various capital lease obligations for equipment purchases that
require monthly, quarterly and bi-annual monthly payments ranging from $215 to $9,915. The
future minimum payments under the capitalized leases consist of the following at September 30,
2006:
Fiscal year ending September 30,
2007 $ 28,408
2008 2,780
Total minimum payments 31,188
Amounts representing interest (1,221)
Present value of net minimum lease payments $ 29,967
As of September 30, 2006, $160,280 of the Sheriff's equipment under capital leases are
included as capital assets in the County's government-wide financial statements.
Note 5 - Retirement plan
Plan description — The Sheriff's employees participate in the Florida Retirement System
("FRS"), administered by the Florida Department of Administration. Employees elect to
participate in either the defined benefit plan ("Pension Plan"), a cost-sharing, multiple-employer,
defined benefit retirement plan, or the defined contribution plan (Investment Plan) under the
FRS. 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.
10
MONROE COUNTY, FLORIDA
SHERIFF
Notes to Financial Statements
Year Ended September 30, 2006
Note 5- Retirement plan (continued)
Benefits under the pension plan are computed on the basis of age, average final compensation,
and service credit. Regular class employees who retire at or after age 62 with 6 years of
credited service or 30 years of service regardless of age are entitled to a retirement benefit
payable monthly for life, equal to 1.6% of their final average compensation for each year of
credited service. Vested employees with less than 30 years of service may retire before age
62 and receive reduced retirement benefits. Special risk class employees (sworn law
enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with 6
years of credited service, or with 25 years of service regardless of age, are entitled to a
retirement benefit payable monthly for life, equal to 3.0% of their final average compensation for
each year of credited service. Senior management service class employees who retire at or
after age 62 with at least 6 years of credited services 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 for each year of credited service. Elected officers' class employees who retire at
or after age 62 with at least 6 years of credited services 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 for each year of credited service. A post-
employment health insurance subsidy is also provided to eligible retired employees through the
FRS in accordance with Florida Statutes.
In addition to the above benefits, the FRS administers a Deferred Retirement Option Program
("DROP"). This program allows eligible employees to defer receipt of monthly retirement benefit
payments while continuing employment with a Florida Retirement System employer for a period
not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the
Florida Retirement System Trust Fund and accrue interest.
For employees electing to participate in the Investment Plan rather than the Pension Plan,
vesting occurs at one year of service. These participants receive a contribution of self-direction
in an investment product with a third party administrator selected by the State Board of
Administration.
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, 2639 North Monroe Street, Building C, Tallahassee, FL 32399-1560, or
accessing their interest site at www.frs.state.fl.us.
Funding policy - The FRS is noncontributory for members. Governmental employers are
required to make contributions to the FRS based on statewide contribution rates. The
contribution rates by job class at September 30, 2006 were as follows: regular 9.85%; special
risk 20.92%; special risk administrative support 12.55%; county elected officers 16.53%; senior
management 13.12% and DROP participants 10.91%. The Sheriff's contributions made during
the years ended September 30, 2006, 2005 and 2004 were $4,609,039, $3,971,087, and
$3,683,399 respectively, which were equal to actuarially determined contribution requirements
for each year.
11
MONROE COUNTY, FLORIDA
SHERIFF
Notes to Financial Statements
Year Ended September 30, 2006
Note 6- Risk management
The Sheriff 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 Sheriff
purchases commercial insurance for all risks of loss except Workers' Compensation and Group
Insurance. Settled claims have not exceeded these commercial insurance coverages in any of
the last three years.
The Sheriff participates in the coverage provided by the Board of County Commissioners of
Monroe County Workers' Compensation and Group Insurance internal service funds. Under
these programs, Workers' Compensation provides $1,000,000 coverage per claim for regular
employees. Risk Management has a $5,000,000 excess insurance policy for general liability
claims with a $100,000 self-insured retention, and building property damage is covered for the
actual value of the buildings with a deductible between $100,000 and $250,000. Deductibles for
windstorm and flood vary by location. Monroe County purchases commercial insurance for
claims in excess of coverage provided by the funds. Settled claims have not exceeded this
commercial coverage in any of the past three years. The Sheriff makes payments to the
Workers' Compensation and Group Insurance Funds based on estimates of the amounts
needed to pay prior and current year claims.
Note 7 - Litigation
The Sheriff is a party to various lawsuits and claims, which it is vigorously defending. Such
matters arise out of the normal course of its operation, some of which are covered by insurance
policies. 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 Sheriffs
financial position.
Note 8- Lease commitments
Operating leases - The Sheriff leases office space, equipment and vehicles under operating
lease agreements. These lease agreements include options to extend the leases for additional
_ terms. Total lease payments made during the fiscal year ended September 30, 2006 were
$2,757,119.
12
i
MONROE COUNTY, FLORIDA
SHERIFF
Notes to Financial Statements
Year Ended September 30, 2006
Note 8 - Lease commitments (continued)
The following is a schedule by years of minimum future rentals under non-cancelable operating
leases as of September 30, 2006:
Year Ending
September 30,
2007 $ 3,628,735
2008 3,606,155
2009 3,716,737
2010 3,655,643
2011 3,678,610
2012-2015 12,019,913
Total $ 30,305,793
Note 9 — Deficit Fund Balance
The Sheriff is reporting a deficit fund balance of$459,302 in the Grants Special Revenue Fund.
The Sheriff anticipates receipt of grant reimbursement for these expenditures during the next
fiscal year.
13
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual-General Fund
Year Ended September 30,2006
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental
Board of County Commissioners $ 42,191,077 $ 46,013,992 $ 45,975,590 $ (38,402)
Investment income - - 303,630 303,630
Miscellaneous - - 127,995 127,995
Total revenues 42,191,077 46,013,992 46,407,215 393,223
Expenditures:
Current:
Personnel services 32,232,682 31,061,919 30,898,873 163,046
Operating expenses 9,106,308 10,463,644 10,461,511 2,133
Capital outlay 852,087 4,041,240 3,703,251 337,989
Total expenditures 42,191,077 45,566,803 45,063,635 503,168
Excess of revenues over
expenditures - 447,189 1,343,580 896,391
Other financing uses:
Transfer to Board of County Commissioners - - (896,391) (896,391)
Transfers to other funds - (447,189) (447,189) -
Total other financing uses - (447,189) (1,343,580) (896,391)
Excess of revenues over expenditures
and other financing uses - - - -
Fund balances, beginning of year - - - -
Fund balances, and of year $ -
14
MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual-HIDTA Grants Fund
Year Ended September 30,2006
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental $ 20,210,500 $ 20,777,535 $ 20,777,250 $ (285)
Expenditures:
Current:
Personnel services 4,957,000 5,043,888 5,037,944 5,944
Operating expenses 14,983,500 16,180,691 15,163,787 16,904
Capital outlay 225,000 499,206 521,769 (22,563)
Debt service 45,000 53,750 53,750 -
Total expenditures 20,210,500 20,777,635 20,777,250 285
Excess of expenditures over revenues - - - -
Other financing sources.
Capital lease acquisitions - - - -
Total other financing sources - - -
Excess of revenues and other
financing sources over expenditures - - - -
Fund balances, beginning of year - - - -
Fund balances,end of year $
15
MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actuai-Grants Fund
Year Ended September 30,2006
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
lntergovemmental $ 573,000 $ 1,710,469 $ 1,329,689 $ (380,780)
Miscellaneous income - 631,724 - (631,724)
Total revenues 573,000 2,342,193 1,329,689 (1,012,504)
Expenditures:
Current:
Personnel services 426,800 716,466 716,466 -
Operating expenses 90,900 178,734 178,734
Capital outlay 190,000 1,894,182 1,894,182 -
Total expenditures 707,700 2,789,382 2,789,382 -
Excess of expenditures over revenues (134,700) (447,189) (1,459,693) (1,012,504)
Other financing sources:
Insurance proceeds - - 543,308 543,308
-transfers from other funds 134,700 447,189 447,189 -
Total other financing sources 134,700 447,189 990,497 543,308
Excess of expenditures and other financing
uses over revenues - - (469,196) (469,196)
Fund balances,beginning of year 9,894 9,894 9,894
Fund balances(deficit),end of year $ 9,894 $ 9,894 $ (459,302) $ (469,196)
16
MONROE COUNTY,FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual-Shared Asset Forfeiture Fund
Year Ended September 30,2006
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Investment income $ 210,000 $ 96,364 $ 209,008 $ 112,644
Total revenues 210,000 96,364 209,008 112,644
Expenditures:
Current:
Personnel services - - 266 (266)
Operating expenses - - 940 (940)
Aid to other govemmentslnon-profits 210,000 96,364 95,158 1,206
Total expenditures 210,000 96,364 96,364 -
Excess of revenues over expenditures - - 112,644 112,644
Fund balances, beginning of year 4,770,970 4,770,970 4,770,970 -
Fund balances,end of year $ 4,770,970 $ 4,770,970 $ 4,883,614 $ 112,644
17
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MONROE COUNTY, FLORIDA
SHERIFF
Non-Major Special Revenue Funds Description
The purpose of each non-major special revenue fund in the combining balance sheet and
combining statement of revenues, expenditures and changes in fund balances is described
below.
Off-Duty Fund- This fund accounts for receipts, expenditures and related reimbursements for
law enforcement services provided to other organizations.
Teen Court Fund - This fund accounts for receipts and disbursements pertaining to a program
designed to deter juveniles who are becoming involved in crime.
Impact Support Fund - This fund accounts for receipts and disbursements relating to the
administration of the South Florida Drug & Money Laundering Task Force.
Federal Forfeiture Fund - .This fund accounts for revenues from the U.S. Departments of
Justice and Treasury. Expenditures are made in accordance with the guidelines issued by
these agencies.
Law Enforcement Trust Fund- This fund accounts for expenditures to non-profit organizations
to help deter drug use and juvenile delinquency.
State Fine and Forfeiture Fund - This fund accounts for the proceeds from state forfeitures
received primarily from state forfeiture cases.
Airport Services Fund - This fund accounts for expenditures related to providing security at
airports throughout the County.
HIDTA Administrative Fund - This fund accounts for receipts of service fees collected for
administering HIDTA grants. Expenditures relate to the costs of administering the grants.
Commissary Fund - This fund accounts for receipts and disbursements of inmate telephone
commissions, canteen revenues and other inmate programs.
S. Florida Law Enforcement Trust Fund- This fund accounts for receipts and disbursements
pertaining to South Florida Drug & Money Laundering Task Force.
19
MONROE COUNTY, FLORIDA
SHERIFF
Combining Balance Sheet-Non-Major Governmental Funds
Special Revenue Funds
September 30,2006
Impact Federal
Off-Duty Teen Court Support Forfeiture
Assets
Cash and cash equivalents $ - $ - $ - $ 1,540,061
Due from Board of County Commissioners 1,453 48,843 - -
` Due from other funds 65 - 122,799 -
Due from governmental units 1,695 - - -
Due from others 1,730 - - 1,800
Total assets $ 4,943 $ 48,843 $ 122,799 $ 1,541,861
Liabilities and Fund Balances
Liabilities: -
Accounts payable $ - $ - $ - $ 75,592
Due to Board of County Commissioners - - - 8,841
Due to other governmental units 65 - 122,799 -
Due to other funds 4,878 48,843 - 39,205
Deferred revenues - - -Total liabilities 4,943 48,843 122,799 123,638
Fund balances - - - 1,418,223
Total liabilities and fund balances $ 4,943 $ 48,843 $ 122,799 $ 1,541,861
20
i
MONROE COUNTY, FLORIDA
SHERIFF
Combining Balance Sheet-Non-Major Governmental Funds
Special Revenue Funds
September 30,2006
Law State
Enforcement Fine and Airport HIDTA
Trust Fund Forfeiture Services Administrative
Assets
Cash and cash equivalents $ 250 $ 65,341 $ - $ -
Due from Board of County Commissioners - - 745,848 -
Due from other funds - 250 - 147,217
Due from governmental units - - _ -
Due from others - - -
Total assets $ 250 $ 65,591 $ 745,848 $ 147,217
rT
Liabilities and Fund Balances
Liabilities:
Accounts payable $ - $ 8,522 $ - $ -
Due to Board of County Commissioners - 57,069 - -
Due to other governmental units - - -
Due to other funds 250 - 745,848 -
Deferred revenues - - - 51,947
Total liabilities 250 65,591 745,848 51,947
Fund balances - - - 95,270
Total liabilities and fund balances $ 250 $ 65,591 $ 745,848 $ 147,217
21
i
MONROE COUNTY, FLORIDA
SHERIFF
Combining Balance Sheet-Non-Major Governmental Funds
Special Revenue Funds
September 30,2006
- S. FL Law Total Non-major
Enforcement Special Revenue
Commissary Trust Fund Funds
Assets
Cash and cash equivalents $ 301.231 $ 1,551,797 $ 3,458,680
Due from Board of County Commissioners - - 796,144
Due from other funds 1,827 39,205 311,363
Due from governmental units 14,682 - 16,377
Due from others 46,912 - 50,442
Total assets $ 364,852 $ 1,591,002 $ 4,633,006
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 77,975 $ - $ 162,089
Due to Board of County Commissioners - - 65,910
Due to other governmental units - - 122,864
Due to other funds 815 - 839,839
Deferred revenues - - 51,947
Total liabilities 78,790 - 1,242,649
Fund balances 285,862 1,591,002 3,390,367
Total liabilities and fund balances $ 364,652 $ 1,591,002 $ 4,633,006
22
MONROE COUNTY,FLORIDA
SHERIFF
Combining Statement of Revenues,Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Special Revenue Funds
Year Ended September 30,2006
Impact Federal
Off-Duty Teen Court Support Forfeiture
Revenues:
lntergovemmental $ 705 $ 86,329 $ - $ 272.929
Charges for services 74,536 - 134,784
Fines and forfeitures -
Investment income - - - 77,673
Miscellaneous _
Total revenues 75,241 86,329 134,784 350.602
Expenditures:
Current:
Personnel services 75,241 93,045 133,832 37,482
Operating expenses - 11,656 952 193,488
Capital outlay - - - 300,559
Aid to other governments/non-profits - - 74,346
Total expenditures 75,241 104,701 134,784 605,875
Excess of revenues over
(under)expenditures - (18,372) - (265,273)
Other financing sources(uses):
Transfers from other funds
Transfer to Board of County Commissioners
Total other financing sources(uses) _
Excess of revenues over(under)expenditures
and other financing sources(uses) - (18,372) - (255,273)
Fund balances,beginning of year - 18,372 - 1,673,496
Fund balances,and of year $ _ _ $ $ 1,418,223
23
MONROE COUNTY,FLORIDA
SHERIFF
Combining Statement of Revenues,Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Special Revenue Funds
Year Ended September 30,2006
Law State
Enforcement Fine and Airport HIOTA
Trust Fund Forfeiture Services Administrative
Revenues:
Intergovernmental $ 96,477 $ 30,413 $ 1,804,962 $ -
Charges for services - - - 233,789
Fines and forfeitures - - - -
Investment income - 1,935 - -
Miscellaneous - 81,389 -Total revenues 96,477 113,737 1,804,962 233,789
Expenditures:
Current:
Personnel services - - 1,687,968 186,692
Operating expenses - 18,247 111,477 21,852
Capital outlay - - 5,517 3,150
Aid to other governments/non-profits 96,477 - - -
Total expenditures 96,477 18,247 1,804,962 211,694
Excess of revenues over
expenditures - 95,490 - 22,095
Other financing sources(uses):
Transfers from other funds - - - -
Transfer to Board of County Commissioners - (95,490) -
Total other financing sources(uses) - (95.490) - -
Excess of revenues over expenditures
and other financing sources(uses) - - - 22,095
Fund balances,beginning of year - - - 73,175
Fund balances,end of year $ - $ - $ - $ 95,270
24
MONROE COUNTY,FLORIDA
SHERIFF
Combining Statement of Revenues,Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Special Revenue Funds
Year Ended September 30,2006
S.FL Law Total Non-major
Enforcement Special Revenue
Commissary Trust Fund Funds
Revenues:
Intergovernmental $ - $ - $ 2,291,815
Charges for services 434,304 - 877,413
Fines and forfeitures - 1,020,352 1,020,352
Investment income 11,387 29,427 120,422
Miscellaneous 70,076 - 151,465
Total revenues 515,767 1,049,779 4,461,467
Expenditures:
Current:
Personnel services 155,571 - 2,369,831
Operating expenses 290,536 20,058 668,266
Capital outlay - - 309,226
Aid to other govemmentslnon-proflts - - 170,823
Total expenditures 446,107 20,058 3,518,146
Excess of revenues over
expenditures 69,660 1,029,721 943,321
Other financing sources(uses):
Transfers from other funds - _
Transfer to Board of County Commissioners - (95,490)
Total other financing sources(uses) - (95,490)
Excess of revenues over expenditures
and other financing sources(uses) 69,660 1,029,721 847,831
Fund balances,beginning of year 216,202 561,281 2,542,526
Fund balances,end of year $ 285,862 $ 1,591,002 $ 3,390,357
25
MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual-Off-Duty Fund
Year Ended September 30,2006
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental $ - $ - $ 705 $ 705
Charges for services 94,600 75,251 74,536 (715)
Total revenues 94,600 75,251 75,241 (10)
Expenditures:
Current:
Personnel services 94,600 75,241 - 75,241 -
Total expenditures 94,600 75,241 75,241 -
Excess of expenditures over
revenues - 10 - (10)
Fund balances, beginning of year - - - -
Fund balances,end of year $ - $ 10 $ - $ (10)
26
MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual- Impact Support Fund
Year Ended September 30,2006
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Charges for services $ 145,000 $ 145,000 $ 134,784 $ (10,216)
Total revenues 145,000 145,000 134,784 (10,216)
Expenditures:
Current:
Personnel services 144,500 144,500 133,832 10,668
Operating expenses 500 500 952 (452)
Total expenditures 145,000 145,000 134,784 10,216
Excess of revenues over
expenditures - - - -
Fund balances,beginning of year
Fund balances,and of year $ - $ _ $ _ $ _
27
MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues,Expenditures and Changes in Fund Balances
Budget and Actual-Federal Forfeiture Fund
Year Ended September 30,2006
_ Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental $ 440,000 $ 272,929 $ 272,929 $ -
Investment income 70,000 77,673 77,673 -
Total revenues 510,000 350,602 350,602 -
- Expenditures:
Current:
Personnel services 53,000 37,482 . 37,482 -
Operating expenses 166,000 193,488 193,488 -
Capital outlay 800,000 300,559 300,559
Aid to other governments - 74,346 74,346 -
Total expenditures 1,019,000 605,875 605,875 -
Excess of expenditures over(under)
revenues (509,000) (255,273) (255,273) -
Other financing sources
Transfers from other funds - - -
Total other financing sources - - -
Excess of revenues and other financing
sources over expenditures (509,000) (255,273) (255,273) -
Fund balances,beginning of year 1,673,496 1,673,496 1,673,496 -
Fund balances,end of year $ 1,164,496 $ 1,418,223 $ 1,418,223 $ -
2B
MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual-State Fine and Forfeiture Fund
Year Ended September 30,2006
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Intergovernmental $ 30,000 $ 30,413 $ 30,413 $Investment income 1,500 1,935 1,935 -
Miscellaneous 50,000 81,389 81,389 -
Total revenues 81,500 113,737 113,737 -
Expenditures:
Current:
Operating expenses 81,500 113,737 18,247 95,490
Capital outlay - - - -
Total expenditures 81,500 113,737 18,247 95,490
Excess of revenues over
expenditures - - 95,490 95,490
Other financing uses.-
Transfer to Board of County Commissioners - - (95,490) (95,490)
Total other financing uses - - (95,490) r95,490)
Excess of revenues over expenditures and
other financing uses - - - -
Fund balances, beginning of year - - - -
Fund balances,end of year $
29
MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual- HIDTA Administrative Fund
Year Ended September 30,2006
Variance
With Final
Original Final Positive
- Budget Budget Actual (Negative)
Revenues:
Charges for services $ 200,000 $ 211,694 $ 233,789 $ 22,095
Total revenues 200,000 211,694 233,789 22,095
Expenditures:
Current:
Personnel 195,000 186,692 186,692 -
Operating expenses 21,000• 21,852 21,852 -
Capital outlay 4,000 3,150 3,150 -
Total expenditures 220,000 211,694 211,694 -
Excess of revenues over(under)
expenditures (20,000) - 22,095 22,095
Fund balances, beginning of year 73,175 73,175 73,175 -
Fund balances,end of year $ 53,175 $ 73,175 $ 95,270 $ 22,095
30
— MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual-Airport Services
Year Ended September 30, 2006
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Charges for services $ 1,585,000 $ 1,804,962 $ 1,804,962 $
Total revenues 1,585,000 1,804,962 1,804,962 -
Expenditures:
C u rrent:
Personnel 1,420,000 1,705,927 1,687,968 17,959
Operating expenses 95,000 93,518 111,477 (17,959)
Capital outlay 70,000 5,517 5,517
Total expenditures 1,585,000 1,804,962 1,804,962 -
Excess of expenditures over
revenues _ - _
Fund balances,beginning of year - - - -
Fund balances, end of year $
-smos
31
MONROE COUNTY,FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual-Commissary Fund
Year Ended September 30,2006
Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Charges for services $ - $ - $ 434,304 $ 434,304
Investment income 10,000 11,387 11,387 -
Miscellaneous 368,000 434,720 70,076 (364,644)
Total revenues 378,000 446,107 515,767 69,660
Expenditures:
Current:
Personnel 154,000 155,571 155,571 -
Operating expenses 224,000 290,536 290,536 -
Total expenditures 378,000 446,107 446,107 -
Excess of expenditures over
revenues - - 69,660 69,660
Fund balances, beginning of year 216,202 216,202 216,202 -
Fund balances,end of year $ 216,202 $ 216,202 $ 285,862 $ 69,660
32
MONROE COUNTY, FLORIDA
SHERIFF
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual-S. Florida Law Enforcement Trust Fund
Year Ended September 30,2006
` Variance
With Final
Original Final Positive
Budget Budget Actual (Negative)
Revenues:
Fines and forfeitures $ 12,000 $ 20,058 $ 1,020,352 $ 1,000,294
Investment income 13,000 - 29,427 29,427
Total revenues 25,000 20,058 1,049,779 1,029,721
Expenditures:
Current:
Operating expenses 25,000 20,058 20,058 -
Total expenditures 25,000 20,058 20,058 -
Excess of revenues over
expenditures - - 1,029,721 1,029,721
Fund balances,beginning of year 561,281 561,281 561,281 -
Fund balances,and of year $ 561,281 $ 561,281 $ 1,591,002 $ 1,029,721
33
MONROE COUNTY, FLORIDA
SHERIFF
Agency Funds Description
The purpose of each agency fund in the combining financial statement on the following page is
described below.
Civil Process Fund- This fund accounts for receipt and disbursement of funds received for the
service of papers by the Sheriff.
Bonds Fund-This fund accounts for receipts and disbursements of the Bonds Fund.
Inmate Fund - This fund accounts for receipts and disbursements of the monies held by the
Sheriff on behalf of incarcerated inmates.
34
MONROE COUNTY, FLORIDA
SHERIFF
Combining Statement of Changes in Fiduciary Assets and Liabilities
All Agency Funds
Year Ended September 30, 2006
October 1, September 30,
2005 Additions Deductions 2006
Civil Process
Assets
Cash and cash equivalents $ 30,700 $ 79,743 $ 96,417 $ 14,026
Total assets $ 30,700 $ 79,743 $ 96,417 $ 14,026
Liabilities
Accounts payable $ - $ 1,728 $ - $ 1,728
Due to Board of County Commissioners 6,101 52,576 53,862 4,815
Due to individuals 24,599 25,439 42,555 7,483
Total liabilities $ 30,700 $ 79,743 $ 96,417 $ 14,026
Bonds
Assets
Cash and cash equivalents $ 533,634 $ 1,255,264 $ 1,110,231 $ 678,667
Total assets $ 533,634 $ 1,255,264 $ 1,110,231 $ 678,667
Liabilities
Due to individuals $ 533,634 $ 1,255,264 $ 1,110,231 $ 678,667
Total liabilities $ 533,634 $ 1,255,264 $ 1,110,231 $ 678,667
Inmate
Assets
Cash and cash equivalents $ 74,663 $ 1,173,127 $ 1,190,083 $ 57,707
Total assets $ 74,663 $ 1,173,127 $ 1,190,083 $ 57,707
Liabilities
Due to other funds $ - $ 6,168 $ - $ 6,168
Due to individuals 74,563 1,166,959 1,190,083 51,539
Total liabilities -s 1,1$0,083 7- 57,707
Total All Ageno Efinds
Assets
Cash and cash equivalents $ 638,997 $ 2,508,134 $ 2,396,731 $ 750,400
Total assets $ 638,997 $ 2,508,134 $ 2,396,731 $ 750,400
Liabilities
` Accounts payable $ - $ 1,728 $ - $ 1,728
Due to Board of County Commissioners 6,101 52,576 53,862 4,815
Due to other funds - 6,168 - 6,168
Due to individuals 632,896 2,447,662 2,342,869 737,689
Total liabilities $ 638,997 $ 2,508,134 $ 2,396,731 $ 750,400
35
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
milt
IMMIMNININ
r�DJMAJ X L4 :
e
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Richard Roth,
Sheriff of Monroe County, Florida:
We have audited the financial statements of each major fund and the aggregate remaining fund
information of the Monroe County, Florida Sheriff (the "Sheriff') as of and for the year ended
September 30, 2006, which collectively comprise the Sheriff's basic financial statements, and
have issued our report thereon dated January 26, 2007 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. 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.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Sheriffs 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 reportable condition in which the design or
operation of one or more of the internal control components does not reduce to a relatively low
level the risk that misstatements in amounts caused by error or fraud in amounts that would be
material in relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over financial reporting and its operation that
we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriffs financial statements are
free of 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.
36
We noted other matters involving the internal control over financial reporting, which have been
reported to management of the Sheriff in a separate letter dated January 26, 2007.
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
specified parties.
Orlando, Florida
January 26, 2007
37
ACCOU NA AN IS
INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Richard Roth,
Sheriff of Monroe County, Florida:
We have audited the financial statements of each major fund and the aggregate remaining fund
information of the Monroe County, Florida Sheriff (the "Sheriff'), as of and for the year ended
September 30, 2006, which collectively comprise the Sheriffs basic financial statements, and
have issued our report thereon dated January 26, 2007 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.
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. We have issued
our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards, dated January 26, 2007, and it should be
considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General. Those rules (Section 10.554(1)(h)(1)) require that we address in the management
letter, if not already addressed in the auditors' report on internal control over financial reporting,
compliance and other matters, whether or not corrective actions have been taken to address
significant findings and recommendations made in the preceding annual financial audit report.
There were no recommendations in the preceding year's annual financial audit report.
The Rules of the Auditor General (Section 10.554(1)(h)(2)) state that a management letter shall
have a statement as to whether or not the Sheriff complied with Section 218.415, Florida
Statutes, regarding the investment of public funds. In connection with our audit of the financial
statements of the Sheriff, the results of our tests did not indicate that the Sheriff was in
noncompliance with Section 218.415 regarding the investment of public funds.
The Rules of the Auditor General (Section 10.554(1XhX3)) require disclosure in the
management letter of any recommendations to improve the Sheriffs financial management,
accounting procedures, and internal controls. Please see Appendix A for the recommendations
in connection with the fiscal 2006 financial statement audit.
The Rules of the Auditor General (Section 10.554(1Xh)(4)) require disclosure in the
management letter of the following matters if not already addressed in the auditors' reports on
compliance and internal controls: (1) violations of laws, rules, regulations, and contractual
provisions that have occurred, or are likely to have occurred; (2) improper or illegal
expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required
disclosures from the financial statements); (4) failures to properly record financial transactions;
and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or
that come to the attention of, the auditor. There were no such matters noted.
38
The Rules of the Auditor General (Section 10.554(1)(h)(5)) also require that the name or official
title and legal authority for the primary government and each component unit of the reporting
entity be disclosed in the management letter, unless disclosed in the notes to the financial
statements. The Sheriff is a separately elected county official established pursuant to the
Constitution of the State of Florida. There are no component units related to the Sheriff.
This report is intended solely for the information and use of management, the State of Florida
Office of the Auditor General, and applicable state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
Orlando, Florida
January 26, 2007
39
MONROE COUNTY, FLORIDA
Sheriff
Appendix A—Management Letter Comments
September 30, 2006
FINANCE DEPARTMENT
Proper Accrual Cutoff
Observation 2006-9: During our audit procedures related to accounts payable there were
instances noted where proper accruals were not made. The aggregate of the amounts found
were immaterial to the overall financial statements.
Recommendation: We suggest that efforts be taken by management to ensure that proper
accrual cutoff is performed after year end. Reviewing invoices received and payments made on
invoices after year end will ensure that expenditures are properly accounted for in the correct
fiscal period.
Management's Response: Our year end process includes sending out a request to all
departments to advise us of any potential payables_ In addition, we look at the prior year's
amounts in an attempt to identify open payables. Once identified, we follow up in order to
obtain the amount that should be recorded. These two billings were overlooked as one was a
one-time expense, the other occurred in prior years but not in the previous year and we did not
receive a response to our request about either one of them. The invoices were received after
we closed the books and no notation was made that they should be recorded as additional
payables as of September 30"'. Accordingly, they were not added at that time. We understand
the importance of a proper cutoff and work toward obtaining one. We will review the year-end
procedures with all staff to ensure that everyone is aware of them and there are no breakdowns
in the future.
Fund Budgeting
Observation 2006-2: Proper budgeting enables management to establish goals and objectives
and aids in planning for fund expenditures. A budget was not administered for the Teen Court
Fund.
Recommendation:- We recommend that budgets be administered for all funds to enhance
financial practices.
Management's Response: We submitted a budget to the County for approval for Teen Court for
the year ended September 30, 2005 that was rejected. The rejection was due to a
misunderstanding as both the County and the Sheriffs Office had funds with the identical name.
We used the September 30, 2005 approved budgets to establish a list of those existing funds
that needed a budget and added any new funds to it. Based on this rejection, it was
inadvertently overlooked. In the future, we will modify our procedures to review all funds to
determine if a budget is needed for each one.
40
Sheri` Monroe County Shero's Office
ff Richard D. Roth, Sher ff
5525 College Road
Key West,Florida 33040
(305)292-7000 FAX: (305)292-7070 1-800 273-COPS
www.keysso.net
SUBSTMONS:
Freeman Substation
20950 Overseas Hwy.
Cudjoe Key,FL 33042 April 30, 2007
(305)745-3184
FAX(305)745-3761
Marathon Substation
3103 Overseas Hwy.
Marathon,FL 33050 Comptroller— State of Florida
(305)289-2430
FAX(305)289-2497 Department of Banking & Finance
Islamorada Substation Bureau of Local Government Finance
870M Overseas Hwy. Room 1001 — Capitol Building
Islamorada,FL 33036 Tallahassee, Florida 32399-0350
(305)853-702I
FAX(305)853-9372
Roth Building RE: FYE 2006 Audit
50 High Point Rd.,Suite 100
Tavernier,FL 33070 Dear Comptroller:
(305)853-3211
FAX(305)853-3705
Our office has received the audit report for the fiscal year ending
DETENT1Qrj CENTERS: September 30, 2006.
Key West Det.Center
5501 College Road
Key West,FL 33040 The report indicates two recommendations to improve the Sheriffs
(305)293-7300 Office accountingprocedures or internal controls.
FAX(305)293-7353
Marathon Det.Face T
ity
3981 Ocean Terrace proper Accrual Cutoff
Marathon,FL 33050
(305)289-2420 Observation 2006-1: Duringour audit procedures related to accounts
FAX(305)284-2424
payable there were instances noted where proper accruals were not
Placation Det.Facility made. The aggregate of the amounts found were immaterial to the
53 High Point Road ggre g
Plantation Key,FL 33070 overall financial statements.
(305)853-3266
FAX(305)853-3270
Management's Response: Our year-end process includes sending
SPECIAL OPERATIONS out a request to all departments to advise us of any potential
P.O.Box5W975 payables. In addition, we look at prior year's amounts in an attempt
Marathon, 33050
(305)289-2410 to identify open payables. Once identified, we follow up in order to
FAX(305)289-2498 obtain the amount that should be recorded. These two billings were
overlooked as one was a one-time expense, the other occurred in
AVIATION DIVISION prior years but not in the previous year and we did not receive a
10100 Overseas Hwy.
Marathon,FL 33050 response to our request about either one of them. The invoices were
(305)289-2777 received after we closed the books and no notation was made that
FAX(305)289-2776 they should be recorded as additional payables as of September 30th.
COMMUNICATIONS
2796 Overseas Hwy.
Marathon,FL 33050
(305)289-2351 Z11'FAX(305)289-2493 s .
Accordingly, they were not added at that time. We understand the
importance of a proper cutoff and work toward obtaining one. We will
review the year-end procedures with all staff to ensure that everyone
is aware of them and there are no breakdowns in the future.
Fund Budgeting
Observation 2006-2: Proper budgeting enables management to
establish goals and objectives and aids in planning for fund
expenditures. A budget was not administered for all funds to
enhance financial practices.
Management's Response: We submitted a budget to the County for
approval for Teen Court for the year ended September 30, 2005 that
was rejected. The rejection was due to a misunderstanding as both
the County and the Sheriff's Office had funds with the identical name.
We used the September 30, 2005 approved budgets to establish a
list of those existing funds that needed a budget and added any new
funds to it. Based on this rejection, it was inadvertently overlooked.
In the future, we will modify our procedures to review all funds to
determine if a budget is needed for each one.
Sincerely,
Richard D. Roth
Sheriff, Monroe County
cc: County Clerk's Finance Division
MCSO Audit Files
f
L