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Fiscal Year 2013 ' MONROE COUNTY, FLORIDA SHERIFF 1 SPECIAL-PURPOSE FINANCIAL t STATEMENTS As of and for the Year Ended September 30, 2013 tAnd Reports of Independent Auditor 1 1 1 1 ' SPECIAL-PURPOSE FINANCIAL STATEMENTS 1 1 t MONROE COUNTY, FLORIDA SHERIFF TABLE OF CONTENTS 1 tREPORT OF INDEPENDENT AUDITOR. 1-2 ' SPECIAL-PURPOSE FINANCIAL STATEMENTS Special-Purpose Balance Sheet -Governmental Funds,___________________________________________________________________________3 Special-Purpose Statement of Revenues, Expenditures and Changes In Fund Balances-Governmental Funds 4 ' Special-Purpose Statement of Fiduciary Assets and Liabilities-Agency Notes to Special-Purpose Financial Statements_________________________________________________________________________________ 6-13 ' 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 tBalances-Budget and Actual —Major Special Revenue Funds._______________________________________________________15-21 OTHER SUPPLEMENTARY INFORMATION t Special-Purpose Combining Statement of General, Trauma Star and Radio Communications Funds by Service Area _______________ 22 Non-Major Special Revenue Funds Description......................................................................................23 Special-Purpose Combining Balance Sheet—Non-Major Governmental Funds- t Special Revenue Funds-----------•-------------------------------------------------- - 24-26 Special-Purpose Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Non-Major Governmental Funds—Special Revenue Funds__________________________________27-29 Schedule of Revenues, Expenditures and Changes in Fund ' Balances—Budget and Actual —Non-Major Special Revenue Funds------------------------------------------------30-35 Agency Funds Description_____________________________ 36 Special-Purpose Combining Statement of Changes in Fiduciary Assets and Liabilities - ' All Agency Funds___________________ __ 37 SUPPLEMENTARY REPORTS OF INDEPENDENT AUDITOR ' Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in Accordance with Government Auditing Standards.......................................................................38-39 ' Independent Auditor's Management Letter............... ......... ........ ........ ........ ........ ........ ..........40 1 1 1 1 1 Cherry Bekaert"' ' Report of Independent Auditor To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida ' Report on the Financial Statements We have audited the accompanying special-purpose 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, 2013, and the related notes to the special-purpose financial statements as listed in the table of contents. ' Management's Responsibility for the Special-Purpose Financial Statements Management is responsible for the preparation and fair presentation of these special-purpose financial statements in accordance with accounting principles generally accepted in the United States of America; this ' includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the special-purpose financial statements that are free from material misstatement, whether due to fraud or error. ' Auditor's Responsibility Our responsibility is to express opinions on these special-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America ' and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the special-purpose financial statements are free of material misstatement. ' An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the special-purpose financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the special-purpose financial statements, whether due to ' fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the special-purpose financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ' of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the special-purpose financial statements. ' We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions ' In our opinion, the special-purpose 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 Sheriff as of September 30, 2013, and the respective changes in financial position thereof for the year then ended, in ' conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1, the accompanying special-purpose financial statements were prepared for the purpose 1 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 and changes in financial position of the Sheriff. Additionally, the special-purpose financial statements present only the Sheriff and are not intended to present fairly the financial position and changes in financial position of ' Monroe County, Florida taken as a whole. 1 1 1 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Required Supplementary Information as listed in the table of contents be presented to supplement the special-purpose ' financial statements. Such information, although not a part of the special-purpose financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the special-purpose financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the special-purpose financial statements, and other ' knowledge we obtained during our audit of the special-purpose financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the special-purpose financial statements of the Sheriff taken as a whole. The accompanying other supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the special-purpose financial statements. The accompanying other supplementary information is the responsibility of management and was derived from ' and relates directly to the underlying accounting and other records used to prepare the special-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the special- purpose financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the special-purpose financial statements or to the special-purpose financial statements themselves, and other additional procedures in accordance with accounting standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated, in all material respects, in relation to the special-purpose financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2014 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriffs internal control over financial reporting and compliance. This report is intended solely for the information and use of the Sheriffs management and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. 1 C� Orlando, Florida March 16, 2014 2 1 1 m N m N r m CO •-- O Q — O r tlf n c ;g r Q rn Q m n rn rn rn Q rn m r Q rn c� � c olc� m m o .- m m rn m- N r m d r � ui rn rn Q Q rn rn o Q �n c-, Q u� rn Q C 7 ' C O Z N N OOi t00 t00 N Q r � � N ry N m N r r Q Q N rl 01 O O M O t Q N N N N W N N N N N r of LL o N N N N N - � N N Q Q h N 'd^ d N N m m f V N N Q o h N N N N LL ww ' '^ • Q N N N i � Ot N N N A tmp m ' r N ' m r b (7 C W W W � � � r • � J 7 LL C M O Q N O m t7 f0 Q m O O A 01 r m m m m m N h O m m Q Q n of m m r m n Q m m Q N O N N r N m O) C d r r r � b A O C a N A W L Z Lo c LL `1 J d z m ao n Q Iq n Q n m cn n co m d w o rw r w 'C C N tt��f N tQ�f N N Q w to cc by A dl dl W U O c ' LL LL y w Ln = N d C c Q N = W b N V 2 U E C W N N b O L N E U a E c O Q y U Z = o a E LL QC d Q C U C 1O A m d � E m d >, d v o m c m m o d E — m a E E o E m c d Z Q c o o O° b y d m U o v v o a o n c c o o E m n a O a w p w C m O O O A Q O. 3 dp t t L _ U O O d 3 V _ _ A O J m c E E E E g W N v m o 0 o g @ n w u m a w m A A ° E A 0 0 0 0 O F ] d 0 0 0 O O A iV C ` lV A O o z Q W w m d d d d ~ = OU U d d d d ~ L O m N d O E L F- H U Z U ti A > > > > m u > > > > D r wS a U A cO a � aa000c > > d G Ln F- 1 1 Q (Qp O Cl O M m m m N N M m m O N Ol O Q O O O m Q O 0 q O W m N m o m N < M �O N N < Q m O m N N E O m M N n N N m C L C t'J Q t7 Q N N Z LL O l q m m cD - Q N N N N N m W N N 1 w w W Q N 101 N l7 M n Q ' LL O V N W w w M O M O v r n m 1 N •o q N N N N O w m m O N Lu v w w C N N i N . . . 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O Q E c o c c 3 'o u v E E E m .c `a o O d H -� N 'd2 a m u°Ji m o o a E m y m v c O K w W E E E o m C of o o a a� a� `V a 'n E o c a� m .. ai o, = m m a� c $ - o o - a� a� w O _ > > c a c a' c u m n w a`� d y c c m ' Z Q w ��„ d d o c d " v �' d a a r .n a a o O d O Q = = U LT U = `2 x U a U Q a c F F r F m m 0 w w LL L ' MONROE COUNTY, FLORIDA SHERIFF SPECIAL-PURPOSE STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES ' AGENCY FUNDS SEPTEMBER 30, 2013 Civil Total ' Process Bonds Inmate Agency ASSETS Cash and cash equivalents $ 9,865 $ 1,230,470 $ 49,629 $ 1,289,964 ' Due from others - 500 13,930 14,430 Total assets $ 9,865 $ 1,230,970 $ 63,559 $ 1,304,394 ' LIABILITIES Accounts payable $ - $ - $ 29,290 $ 29,290 ' Due to Board of County Commissioners 5,453 = - 5,453 Due to other funds 124 21,304 21,428 Due to individuals 4,288 1,230,970 12,965 1,248,223 ' Total liabilities $ 9,865 $ 1,230,970 $ 63,559 $ 1,304,394 1 1 1 ' The accompanying notes to the special-purpose financial statements are an integral part of this statement. 5 ' MONROE COUNTY, FLORIDA SHERIFF NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 ' Note 1—Summary of significant accounting policies 1 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 special-purpose 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, as amended by Statement 39, of the Governmental Accounting Standards Board (GASB). Although the Sheriffs 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 Sheriffs special-purpose 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 (the "Rules"), which requires the Sheriff to only present fund financial statements. In conformity with the Rules, the Sheriff has not presented the government-wide financial ' statements, related disclosures or management's discussion and analysis, which are required to present a complete presentation of its financial position and changes in financial position. 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. ' Description of funds-The Sheriff reports the General Fund and Special Revenue Funds as governmental 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. The Special Revenue Funds accounts for the proceeds and uses of specific revenue sources that are legally restricted or committed to expenditures for a specific purpose. 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. -fhe Sheriff reports the General Fund and the following seven Special Revenue Funds as major funds: Trauma Star, Radio Communications, HIDTA Grants, Grants, Federal Forfeiture, Shared Asset Forfeiture and E-911. The Trauma Star fund accounts for the revenues and expenditures related to the function of air and ambulance ' transports. The Radio Communications fund accounts for the revenues and expenditures related to radio communication functions county-wide to include the majority of federal, state and local entities. 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 other various local, state and federal grants. The Federal Forfeiture 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. 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 an advisory board. The E-911 Fund accounts for fees levied on each telephone access line in Monroe County for the enhancement of the 911 emergency telephone systems. 6 MONROE COUNTY, FLORIDA SHERIFF NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 1—Summary of significant accounting policies (continued) Transfers —The Sheriff transfers funds to administer certain Special Revenue Fund programs. In addition, the extent to which General Fund Trauma Star, Radio Communications and the State Forfeiture Fund revenues exceed expenditures is reflected as transfers out and as liabilities to the Board of County Commissioners. Fund balance presentation — In accordance with GASB Statement No. 54, the fund balances of the governmental funds are classified as restricted or committed. This classification includes amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors or the laws or regulations of other governments. Budgetary requirements — General fund expenditures are controlled by appropriations in accordance with the budget requirements set forth in the Florida Statutes. Budgets are administered for all funds 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"), which consists of the Florida PRIME investment pool and the Fund B Surplus Funds Trust Fund investment pool ("Fund B"). Florida PRIME is a 2a7-like fund stated at share price, which is substantially the same as fair value. Fund B is accounted for as a fluctuating Net Asset Value "NAV" pool. Receivables—All receivables are shown net of an allowance for uncollectibles. Historical collection experience is used to estimate the accounts receivable allowance. The complete_ balance in the Inmate Fund is deemed uncollectible in the amount of$282,894 at September 30, 2013. 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 first in the Sheriffs special-purpose financial statements as well as 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. It is the policy of the Sheriff to capitalize all assets costing more than $1,000 with an estimated useful life of two or more years. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Years Buildings and infrastructure 10-50 Machinery and equipment 5-10 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 special-purpose financial statements requires management to make use of estimates that affect reported amounts.Actual results could differ from estimates. 7 MONROE COUNTY, FLORIDA SHERIFF NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 2—Deposits and investments Cash and cash equivalents at September 30, 2013 consist of the following: Type Credit Quality Rating Fair Value Demand and time deposits N/A $ 17,856,745 SBA Unrated 154,831 $ 18,011,576 The Sheriff places its cash and cash equivalents on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation (FDIC) covers $250,000 for substantially all depository accounts. The Sheriff from time to time may have amounts on deposit in excess of the insured limits and the remaining balances are insured 100% 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 Sheriffs investment policy authorize investments in certificates of deposit, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, money market funds, direct obligations of the U.S. Treasury and federal agencies and instrumentalities. As of September 30, 2013, the Sheriff had $154,831 invested in the SBA, which was less than 1% of the Sheriffs total cash and cash equivalents. Of the $154,831 invested in the SBA, the Sheriff had $1,277 or .8% invested in Fund B and$153,554 or 99.2% invested in Florida PRIME. Florida PRIME is rated by Standard and Poor's. The current rating is AAAm. Fund B is not rated by any nationally recognized statistical rating agency. The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2013 is 44 days. Next interest rate reset days for floating rate securities are used in the calculation of the WAM. The weighted average life (based on expected future cash flows) of Fund B at September 30, 2013 is estimated at 4.04 years. However, because Fund B consists of restructured or defaulted securities, there is a considerable uncertainty regarding the weighted average life. The amount of $1,721,381 represents restricted cash in the 911 Wireless Fund. This amount of cash is in a separate account according to Statute. The County must use the funds only for capital expenditures directly attributable to establishing and provisioning E-911 services, which may include next generation deployment. 8 MONROE COUNTY, FLORIDA SHERIFF NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 3—Interfund receivables, payables,and transfers Interfund receivables and payables at September 30, 2013 consist of the following: Due From Due to Other Funds Other Funds General $ 336,814 $ 700,382 HIDTA 484 345,409 Grants 11,506 152,965 Federal forfeiture 1,799 17,722 E-911 - 17,299 Other governmental 1,005,598 100,996 Agency - 21,428 $ 1,356,201 $ 1,356,201 Note 4—Capital assets - A summary of changes in the Sheriffs capital assets, presented in the government-wide financial statements of the County, is as follows: Balance Balance 10/01/2012 Additions Deductions 09/30/2013 Buildings and improvements $ 2,742,911 $ 5,740 $ - $ 2,748,651 Equipment 34,745,433 1,902,062 1,092,860 35,554,635 $ 37,488,344 $ 1,907,802 $ 1,092,860 $ 38,303,286 Accumulated depreciation $ 18,930,295 $ 2,977,910 $ 955,147 $ 20,953,058 Note 5—Long-term debt The following is a summary of changes in the Sheriffs long-term debt for the year ended September 30, 2013, presented in the government-wide financial statements of the County: Compensated Absences Long-term debt, beginning of year $ 4,450,901 Additions 2,212,290 Long-term debt, end of year $ 6,663,191 9 MONROE COUNTY, FLORIDA SHERIFF NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 6—Fund balances In the governmental fund financial statements, fund balance is composed of two classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. The governmental fund types classify fund balances as follows: Restricted Fund Balance - This classification includes revenue sources that are restricted to specific purposes externally imposed by creditors or imposed by law. E-911 Fund is restricted based upon the E-911 costs allowable by State Statute [F.S. 365]. Shared Asset Forfeiture Fund is restricted upon Ordinance 030-2000 which specifies use must be for law enforcement crime prevention, drug and alcohol abuse prevention and treatment, mental and physical health of minors and adults, and cultural, artistic, educational, recreational and sports programs for Monroe County youth. Federal Forfeiture Fund is restricted for law enforcement purposes based upon the Federal Justice and Treasury Guide to Equitable Sharing which outlines the specific uses of these funds. State Forfeiture Funds are restricted based upon State Statute[F.S. 932.7055]. Teen Court is restricted by State Statute [F.S. 938.19]. Grant Funds are restricted by the rules and guidelines of the local, state or federal agencies awarding the grants (except for HIDTA grants). Inter-Agency Communications Fund is restricted by State Statute [318.21(9)]. Commissary Fund is restricted for the purposes outlined by State Statute[F.S. 951.23(9)]. Committed Fund Balance - Portion of fund balance that can only be used for specific purpose imposed by the Sheriff(highest level of decision-making authority).Any changes or removal of specific purposes requires action by the Sheriff. Contract Administration Fund is committed for the administration of contracts between the Sheriff and third parties. Note 7—Retirement plan Plan description — Substantially all full-time Sheriff employees participate in the Florida Retirement System ("FRS"), administered by the Florida Department of Management Services. Employees elect to participate in the defined benefit plan ("Pension Plan"), a multiple-employer; cost sharing public employee 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. FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to Pension 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 SPECIAL-PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 7—Retirement plan (continued) Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers' class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Substantial changes were made to the Pension Plan during fiscal year 2011 affecting members enrolled on or after July 1, 2011 by extending the vesting requirement to eight years of credited service and increasing normal retirement to age 65 with at least eight years of credited service or 33 years of service regardless of age. Also, the final average compensation of these members will be based on the eight highest years of salary. A post-employment health insurance subsidy is also provided to eligible retired members 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 FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. 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. Investment accounts may be withdrawn by the employee 90 days after termination or retirement. The Florida Division of Retirement issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, PO Box 9000, Tallahassee, FL 32315- 9000, or from the website www.dms.myflorida.com/retirement. Funding policy — Effective July 1, 2011, all enrolled members of the FRS other than DROP participants are required to contribute 3% of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates. The employer contribution rates by job class for the periods from October 1, 2012 through June 30, 2013 and July 1, 2013 through September 30, 2013, respectively, were as follows: regular, 5.18% and 6.95%; county elected officers, 10.23% and 33.03%; senior management, 6.30% and 18.31%; and DROP participants, 5.44% and 12.84%. During the fiscal year ended September 30, 2013, the Sheriff contributed to the FRS an amount equal to 14.75% of covered payroll. Sheriff contributions to the FRS for the fiscal years ended September 30, 2011 through 2013 were $5,076,270, $4,030,391 and $4,604,652, respectively, which were equal to the required contributions for each fiscal year. The Sheriff has historically contributed amounts equal to required contributions and, therefore, does not have a pension asset or liability as determined in accordance with GASB Statement No. 27. Monroe County Sheriff's office offers 457 Deferred Compensation Programs to all employees of the agency. Employees may participate in the plan through payroll deductions and the plan is funded by a Hartford Life Insurance Company and AIG Valic group variable annuity contract. Contributions are invested at the employee's direction through the options available under the program. Employees are fully vested at time of enrollment. The Monroe County Sheriffs Office has no liability beyond the payment of bi-weekly payroll contributions. 11 MONROE COUNTY, FLORIDA SHERIFF NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 7—Retirement plan (continued) Monroe County Sheriff's office also offers a profit-sharing pension plan known as the 401(a) Discretionary Contribution Pension Plan. Only full-time employees of the Sheriff's office classified as Telecommunications Officer, Telecommunications Supervisor, or Telecommunications Director are covered under the pension program established. Effective July 20, 2009, new hired employees will be exempt from the Plan. Those classes of employees are eligible to participate in the program on the first day of the 12-consecutive month period commencing on October 1. The plan allows the agency to contribute ongoing non-elective contributions to each eligible employee's account. The routine amount contributed to each employees account is the variance between FRS's special risk retirement rate and the rate given to the FRS class-group that the Dispatcher's fall into. The Sheriff contributed $43,469 for the year ended September 30, 2013 and there were no employee contributions. Note 8—Other postemployment benefits (OPEB) The Monroe County Board of County Commissioners (BOCC) administers a single-employer defined benefits healthcare plan (the "Plan"). Florida Statutes 112.0801 requires the County to provide retirees and their eligible dependents with the option to participate in the Plan if the County provides health insurance to its active employees and their eligible dependents. The Plan provides medical coverage and prescription drug benefits to both active and eligible retired employees. The Plan does not issue a publicly available financial report. The BOCC may amend the plan design, with changes to the benefits, premiums and/or levels of participant contribution at any time. In an open session, on at least an annual basis and prior to the annual enrollment process,the BOCC approves the rates for the coming calendar year for the retiree and County contributions. Eligibility for postemployment participation in the Plan is limited to full time employees of the County, and the Constitutional Officers. Employees who retire as an active participant in the Plan and were hired on or after October 1, 2001 may continue to participate in the Plan by paying the monthly premium established annually by the BOCC. Employees who retire as an active participant in the plan, were hired before October 1, 2001, have at least ten years of full time service with the County, and meet the retirement criteria of the Florida Retirement System (FRS) may continue to participate in the Plan at a cost equal to the FRS Health Insurance Subsidy for ten years of service (currently $5 per month for each year of service credit at retirement or $50 per month). Retirees who have met the requirements for early retirement, have not achieved age 60 and whose age and years of service do not equal 70 (rule of 70) must pay the standard monthly premium until the age criteria or the rule of 70 is met. At that time, the retiree's cost of participation will be equal to the FRS Health Insurance Subsidy. Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are met. The BOCC engages an actuarial firm on a biannual basis to determine the County's actuarially determined annual required contribution and unfunded obligation. The Sheriff has no responsibility to the Plan other than to make the periodic payments determined by the BOCC. Further information about the Plan is available in the County's Comprehensive Annual Financial Report which is published on the Clerk's website at www.clerk-of- the-court.com. Note 9—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 participates in the coverage provided by the Board of County Commissioners of Monroe County Workers' Compensation, Group Insurance, and Risk Management Internal Service Funds. 12 MONROE COUNTY, FLORIDA SHERIFF NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS SEPTEMBER 30, 2013 Note 9—Risk management(continued) Under these programs, the Workers' Compensation Fund has self-insured coverage up to the first$500,000 per claim for regular employees. Workers' Compensation claims in excess of the self-insured coverage of$500,000 are covered by an excess insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $200,000 self-insured retention, and building property damage is covered for the actual value of the building with a $50,000 deductible. Deductibles for windstorm and flood vary by location. Monroe County purchases commercial insurance for claims in excess of coverage provided by the funds and for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years. The Sheriff makes payments to the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. Note 10—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, all of which are covered by insurance policies or by the Sheriffs participation in the Florida Sheriffs Self-Insurance Fund. 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 11—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 as well as cancellation provisions. Total lease payments made during the fiscal year ended September 30, 2013 were$5,640,940. The following is a schedule by years of minimum future rentals under operating leases as of September 30, 2013: Year Ending September 30, 2014 $ 5,526,052 2015 1,726,009 2016 768,644 2017 176,700 Total $ 8,197,405 For those leases that are increased annually by the Consumer Price Index (CPI) and the lease agreement does not state a minimum or maximum rate for the remainder of the lease term, the same known lease expense is used for the remainder of the lease term in the future rental schedule above. Note 12—Grants The Sheriff is the recipient of grants that are subject to special compliance requirements and audits by the grantor agencies that may result in disallowed expense amounts.These amounts constitute a contingent liability of the Sheriff. The Sheriff does not believe any contingent liabilities to be material to the financial statements. 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 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 42,456,434 $ 42,249.359 $ 42,249,359 $ Investment income - - 52,363 52,363 Miscellaneous income 80,906 406,113 325,207 Total revenues 42,456,434 42,330,265 42,707,835 377,570 Expenditures: Current: Personnel services 31,870,662 31,113,587 30,407,130 706,457 Operating expenses 9,686,685 10.232,601 9,752,958 479,643 Capital outlay 899,087 959,077 853,848 105,229 Total expenditures 42,456,434 42,305,265 41.013,936 1,291,329 Excess of revenues over(under) expenditures - 25,000 1.693,899 1,668,899 Other financing sources(uses). Insurance proceeds - 36,698 36,698 Transfer(to)/from Board of County Commissioners (1,418.941) (1,418,941) Transfer(to)/from other governments (201,981) (201,981) Transfer(to)/from others (25,000) (4,140) 20,860 Transfers(to)/from other funds (105,535) (105,535) Total other financing sources(uses) (25,000) (1,693,899) (1,668,899) Excess of revenues over expenditures and other financing sources(uses) Fund balances,beginning of year Fund balances,end of year $ $ $ $ 14 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-TRAUMA STAR YEAR ENDED SEPTEMBER 30,2013 variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 1,422,503 $ 1,629,578 $ 1,629,578 $ Total revenues 1,422,503 1,629,578 1,629,578 Expenditures: Current: Personnel services 488,733 394,599 394,599 - Operating expense 933,770 1,140,763 1,118,482 22,281 Capital outlay - 94,216 94,216 - Total expenditures 1,422,503 1,629,578 1,607,297 22,281 Excess of revenues over(under) expenditures - 22,281 22,281 Other financing sources(uses): Insurance proceeds 69,093 69,093 Transfer(to)1from Board of County Commissioners (91,374) (91,374) Total other financing sources(uses) (22,281) (22,281) Excess of revenues over expenditures and other financing sources(uses) Fund balances,beginning of year Fund balances,end of year $ $ $ $ 15 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGETAND ACTUAL-RADIO COMMUNICATIONS YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 348,230 $ 348,230 $ 348,230 $ Total revenues 348,230 348,230 348,230 - Expenditures: Current: Personnel services 237,130 171,630 130,439 41,191 Operating expense 111,100 166,100 159,546 6,554 Capital outlay 10,500 6,874 3,626 Total expenditures 348,230 348,230 296,859 51,371 Excess of revenues over(under) expenditures - 51,371 (51,371) Other financing sources(uses): Transfer(to)/from Board of County Commissioners (51.371) (51,371) Total other financing sources(uses) (51,371) (51,371) Excess of revenues over expenditures and other financing sources(uses) Fund balances,beginning of year Fund balances,end of year $ $ $ $ 16 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-HIDTA GRANTS FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other government units $ 20,700,000 $ 20,000,000 $ 19,071.722 $ (928,278) Total revenues 20,700,000 20,000,000 19,071,722 (928,278) Expenditures: Current: Personnel services 4,675,000 4,500,000 4,314,893 185,107 Operating expenses 15,400,000 14,875.000 14,397,032 477,968 Capital outlay 625,000 625,000 359,797 265,203 Total expenditures 20,700,000 20,000,000 19,071,722 928,278 Excess of revenues over(under)expenditures - - - - Fund balances,beginning of year Fund balances,end of year $ $ $ $ 17 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-GRANTS FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 370,000 $ 570,000 $ 548,670 $ (21,330) Intergovernmental-other government units 380,000 380,000 381,924 1,924 Total revenues 750,000 950,000 930,594 (19,406) Expenditures: Current: Personnel services 532,000 520,000 512,499 7,501 Operating expenses 170,000 150,000 140,927 9,073 Capital outlay 137,000 375,000 366,635 8,365 Total expenditures 839,000 1,045,000 1,020,061 24,939 Excess of revenues over(under)expenditures (89,000) (95,000) (89,467) 5,533 Other financing sources: Transfers(to)tfrom other funds 95,000 100,000 102,627 2,627 Total other financing sources 95,000 100,000 102,627 2,627 Excess of revenues over expenditures and other financing sources(uses) 6,000 5,000 13,160 8,160 Fund balances,beginning of year 143,010 18,010 5,096 (12,914) Fund balances,end of year $ 149,010 $ 23,010 $ 18,256 $ (4,754) 18 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-SHARED ASSET FORFEITURE FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Investment income $ 242,000 $ 240,000 $ 239,755 $ 245 Total revenues 242,000 240,000 239,755 245 Expenditures: Current: Personnel services 1,000 1,000 103 897 Operating expenses 1,000 1,000 685 315 Aid to other governments/non-profits 156,000 199,000 192,254 6,746 Total expenditures 158,000 201,000 193,042 7,958 Excess of revenues over(under)expenditures 84,000 39,000 46,713 (7,713) Fund balances,beginning of year 5,161,547 5,173,547 5,173,733 186 Fund balances,end of year $ 5,245,547 $ 5,212,547 $ 5,220,446 $ (7,527) 19 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- FEDERAL FORFEITURE FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-Other government units $ $ $ 265.190 $ 265,190 Investment income 13,702 13,702 Total revenues 278,892 278,892 Expenditures: Current: Personnel services 50,000 75,000 71,298 3,702 Operating expenses 10,000 15,000 11,334 3,666 Capital expenses - 80,000 77,894 2,106 Aid to other governments 700,000 550,000 520,681 29,319 Total expenditures 760,000 720,000 681,207 38,793 Excess of revenues over(under) expenditures (760,000) (720,000) (402,315) 317,685 Fund balances,beginning of year 1,324,232 875,832 2,453,744 1,577,912 Fund balances,end of year $ 564,232 $ 155,832 $ 2,051,429 $ 1,895,597 20 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- E-911 YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 525,000 $ 500,000 $ 492,390 $ (7,610) Investment income 20,000 15,000 14,651 (349) Total revenues 545,000 515,000 507,041 (7,959) Expenditures: Current: Personnel services 105,000 105,000 98,383 6,617 Operating expense 130,000 130,000 124,648 5,352 Capital outlay - 5,000 4,500 500 Total expenditures 235,000 240,000 227,531 12,469 Excess of revenues over(under) expenditures 310,000 275,000 279,510 4,510 Other financing sources: Transfers(to)tfrom Board of County Commissioners - - Transfers(to)lfrom other governments - Total other financing sources - Excess of revenues over expenditures and other financing sources(uses) 310,000 275,000 279.510 4,510 Fund balances,beginning of year 2,193,051 2,225,051 2,235,350 10,299 Fund balances,end of year $ 2,503,051 $ 2,500,051 $ 2,514,860 $ 14,809 21 OTHER SUPPLEMENTARY INFORMATION N N m Co m r �i m vi �i o v rA r vi � v vi r N Q m m O m m r N N r O O m m Q m Co m m Q r i r r r N m m O m m O m m m _O y � C m°' E E O V W � r r m m m m m r m Q N N N O M m m N E w w CJ m Co m o m m m m m o m m m m Co m Q Co m m Q m Q Co m ci Q m Cm m m m m Cm c u� Co O_' — m N m r r N M M M m ai W - N vl Q m O O O m m m t7 O O m 1O m m cli V) Z W LLQ t7 M O m N M t7 r O O m r V) m M Om/ m M N Z N m N m m 'A r M m O N 'n O m m IA N M Q m C N Cl! N N m 'C) m u) U M M N M Z 69 M C r r m m N O m m m L m r r m rn m OO Q Q t00 Q m m N N N O E' m M N M O C C Q W W Z Q m m r m u) m N N Q C7 C7 N N N c Co Cli Co Q m Q m m m L m O m r m N N N V) ` CV N m Qc CCm G C 69 W D N m t7 t7 N O O O m m m m Q O m M N m m Q E v N m m LU Z = 69 w w l7 LL O H Z W � m LL W C O Q m m w E ' _ a EO a C y y C H1 cx T C N 4^ Z O E x N C' co cs m v u c > OJ ^'� U c w a 'O = c m a O cc v m °w a ca 5 ami m W m m O V) U m N y O m 0 0 O W E c V c v c N C m 0 v0 CL 2 C j m N X 00 U 0 0 0 0 m C \ ` - C D O c m m n .0 Wn o 0 0 o L ` U U O Q• Q Z m O y U m C N m cC Ww Cm- Nm DZ 21 > m m mm O O m a- O U O y c n V) W 0 W LL LL 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. Teen Court Fund - This fund accounts for receipts and disbursements pertaining to a program designed to deter juveniles who are becoming involved in crime. 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 (State Forfeiture) - This fund accounts for the proceeds from state forfeitures received primarily from the South Florida Drug and Money Laundering Task Force. Contract Administrative Fund- This fund accounts for the administration of contracts between the Sheriff and third parties. Commissary Fund-This fund accounts for receipts and disbursements of inmate telephone commissions, canteen revenues and other inmate programs. Inter-Agency Communications Fund— This fund accounts for revenues and expenditures allocated for radio communications. 23 MONROE COUNTY, FLORIDA SHERIFF SPECIAL-PURPOSE COMBINING BALANCE SHEET- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30,2013 Law Enforcement Teen Court Trust Fund ASSETS Cash and cash equivalents $ - $ 12 Due from Board of County Commissioners - - Due from other funds 23,430 - Due from governmental units 4,357 - Due from others - - Total assets $ 27,787 $ 12 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ Due to Board of County Commissioners - - Due to other governmental units - - Due to other funds 2,490 12 Total liabilities 2,490 12 Fund balances,restricted Teen court program 25,297 Inter-agency communication program - - Inmate welfare program - - Fund balances,committed Contract administration - - Total fund balances 25,297 Total liabilities and fund balances $ 27,787 $ 12 24 MONROE COUNTY, FLORIDA SHERIFF SPECIAL-PURPOSE COMBINING BALANCE SHEET- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2013 State Contract Forfeiture Administrative Commissary ASSETS Cash and cash equivalents $ 48,514 $ - $ 542,995 Due from Board of County Commissioners - 1,744 - Due from other funds 12 964,897 16,870 Due from governmental units - 109,007 - Due from others - 3,831 46,052 Total assets $ 48,526 $ 1,079,479 $ 605,917 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - $ 14,194 Due to Board of County Commissioners 48,526 41,333 - Due to other governmental units - 11,364 8,528 Due to other funds - 51,641 28,323 Total liabilities 48,526 - 104,338 51,045 Fund balances,restricted Teen court program - - - Inter-agency communication program - - Inmate welfare program - - 554,872 Fund balances,committed Contract administration - 975,141 - Total fund balances - 975,141 554,872 Total liabilities and fund balances $ 48,526 $ 1,079,479 $ 605,917 25 MONROE COUNTY, FLORIDA SHERIFF SPECIAL-PURPOSE COMBINING BALANCE SHEET- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30,2013 Total Nonmajor Inter-Agency Special Revenue Communications Funds ASSETS Cash and cash equivalents $ 1,065,550 $ 1,657,071 Due from Board of County Commissioners 19,899 21,643 Due from other funds 389 1,005,598 Due from governmental units 66,476 179,840 Due from others - 49,883 Total assets $ 1,152,314 $ 2,914,035 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 14,194 Due to Board of County Commissioners - 89,859 Due to other governmental units - 19,892 Due to other funds 18,530 100,996 Total liabilities 18,530 224,941 Fund balances,restricted Teen court program - 25,297 Inter-agency communication program 1,133,784 1,133,784 Inmate welfare program - 554,872 Fund balances,committed Contract administration - 975,141 Total fund balances 1,133,784 2,689,094 Total liabilities and fund balances $ 1,152,314 $ 2,914,035 26 MONROE COUNTY,FLORIDA SHERIFF SPECIAL-PURPOSE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30,2013 Law Enforcement Teen Court Trust Fund Revenues: Intergovernmental-BOCC $ $ 38,494 Intergovernmental-other government units - Charges for services 56,399 Fines and forfeitures - Investment income Miscellaneous - Total revenues 56,399 38,494 Expenditures: Current: Personnel services 48,060 - Operating expenses 6,471 Capital outlay - - Aid to other govemments/non-profits 35,000 Total expenditures 54,531 35,000 Excess of revenues over (under)expenditures 1,868 3,494 Other financing sources(uses): Transfers(to)/rom other funds - (3,494) Transfer(to)/from Board of County Commissioners Total other financing sources(uses) - (3,494) Excess of revenues over expenditures and other financing sources(uses) 1,868 Fund balances,beginning of year 23,429 Fund balances,end of year $ 25,297 $ 27 MONROE COUNTY,FLORIDA SHERIFF SPECIAL-PURPOSE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30,2013 State Contract Forfeiture Administrative Commissary Revenues: Intergovernmental-BOCC $ $ 8,417 $ Intergovernmental-other government units 375,308 - Charges for services 3,178,591 389,744 Fines and forfeitures 109,509 - - Investment income 165 1,361 3,211 Miscellaneous income - 17,204 Total revenues 109,674 3,563,677 410,159 Expenditures: Current: Personnel services - 3.017,236 157,964 Operating expenses 60,663 244,556 205,820 Capital outlay 485 114,969 18,883 Aid to other govemments/non-profits - Total expenditures 61,148 3,376,761 382,667 Excess of revenues over(under) expenditures 48,526 186,916 27,492 Other financing sources(uses): Transfers(to)lfrom otherfunds - 2,908 3,494 Transfer(to)/from Board of County Commissioners (48,526) - Total otherfinancing sources(uses) (48,526) 2,908 3,494 Excess of revenues over expenditures and other financing sources(uses) 189,824 30,986 Fund balances,beginning of year 785,317 523,886 Fund balances,end of year $ $ 975,141 $ 554,872 28 MONROE COUNTY,FLORIDA SHERIFF SPECIAL-PURPOSE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30,20I3 Total Nonmajor Inter-Agency Special Revenue Communications Funds Revenues: Intergovernmental-BOCC $ 133,600 $ 180,511 Intergovernmental-other government units - 375,308 Charges for services 66,376 3.691,110 Fines and forfeitures - 109,509 Investment income 7,038 11,775 Miscellaneous income - 17,204 Total revenues 207,014 4,385,417 Expenditures: Current: Personnel services - 3,223,260 Operating expenses 237,912 755.422 Capital outlay 9,701 144,038 Aid to other govemments/non-profits - 35,000 Total expenditures 247,613 4,157,720 Excess of revenues over(under) expenditures (40,599) 227,697 Other financing sources(uses): Transfers(to)/from other funds 2,908 Transfer(to)/from Board of County Commissioners (48,526) Total other financing sources(uses) (45,618) Excess of revenues over expenditures and other financing sources(uses) (40,599) 182,079 Fund balances,beginning of year 1,174,383 2,507,015 Fund balances,end of year $ 1,133,784 $ 2,689,094 29 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-TEEN COURT FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 65,000 $ 60,000 $ 56,399 $ (3,601) Total revenues 65,000 60,000 56,399 (3,601) Expenditures: Current: Personnel services 49,000 50,000 48,060 1,940 Operating expense 8,500 7,000 6,471 529 Total expenditures 57,500 57,000 54,531 2,469 Excess of revenues over(under)expenditures 7,500 3,000 1,868 (1,132) Excess of revenues over expenditures and other financing sources(uses) 7,500 3,000 1,868 (1,132) Fund balances,beginning of year 20,861 22,561 23,429 868 Fund balances,end of year $ 28,361 $ 25,561 $ 25,297 $ (264) 30 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-LAW ENFORCEMENT TRUST FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 90,000 $ 45,000 $ 38,494 $ (6,506) Total revenues 90,000 45,000 38,494 (6,506) Expenditures: Current: Aid to other govemments/non-profits 90,000 41,506 35,000 6,506 Total expenditures 90,000 41,506 35,000 6,506 Excess of revenues over(under)expenditures - 3,494 3,494 Other financing sources Transfers(to)/from other funds (3,494) (3,494) Total other financing sources (3,494) (3,494) Excess of revenues over expenditures and other financing sources(uses) Fund balances,beginning of year Fund balances,end of year $ $ $ $ 31 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-STATE FORFEITURE FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Fines and forfeitures $ 64,800 $ 114,800 $ 109,509 $ (5,291) Investment income 200 200 165 (35) Total revenues 65,000 115,000 109,674 (5,326) Expenditures: Current: Operating expenses 15,000 64,000 60,663 3,337 Capital outlay 5,000 1,000 485 515 Total expenditures 20,000 65,000 61,148 3,852 Excess of revenues over(under) expenditures 45,000 50,000 48,526 (1,474) Other financing uses: Transfer(to)/from Board of County Commissioners (45,000) (50,000) (48,526) 1,474 Total other financing uses (45,000) (50,000) (48,526) 1,474 Excess of revenues over expenditures and other financing sources(uses) - Fund balances,beginning of year Fund balances,end of year $ $ $ $ 32 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-CONTRACT ADMINISTRATIVE FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 8,500 $ 8,400 $ 8,417 $ 17 Intergovernmental-other governmental units 445,000 445,000 375,308 (69,692) Charges for services 2,980,000 3,145,600 3,178,591 32,991 Interest income 1,000 1,000 1,361 361 Total revenues 3,434,500 3,600,000 3,563,677 (36,323) Expenditures: Current: Personnel 2,840,000 3,050,000 3,017,236 32,764 Operating expenses 243,000 300,000 244,556 55,444 Capital expenses 97,000 120,000 114,969 5,031 Total expenditures 3,180,000 3,470,000 3,376,761 93,239 Excess of revenues over(under) expenditures 254,500 130,000 186,916 56,916 Other financing sources(uses) Transfers(to)/from other funds - - 2,908 2,908 Total other financing sources(uses) - - 2,908 2,908 Excess of revenues over expenditures and other financing sources(uses) 254,500 130,000 189,824 59,824 Fund balances,beginning of year 699,437 783,437 785,317 1,880 Fund balances,end of year $ 953,937 $ 913,437 $ 975,141 $ 61,704 33 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-COMMISSARY FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 406,500 $ 406,500 $ 389,744 $ (16,756) Investment income 3,400 3,200 3,211 11 Miscellaneous income 5,100 5,300 17,204 11,904 Total revenues 415,000 415,000 410,159 (4,841) Expenditures: Current: Personnel expenses 160,000 160,000 157,964 2,036 Operating expenses 150,000 206,000 205,820 180 Capital outlay - 19,000 18,883 117 Total expenditures 310,000 385,000 382,667 2,333 Excess of revenues over(under) expenditures 105,000 30,000 27,492 (2,508) Other financing sources(uses) Transfers(to)tfrom other funds 3,500 3,500 3,494 (6) Total other financing sources(uses) 3,500 3,500 3,494 (6) Excess of revenues over expenditures and other financing sources(uses) 108,500 33,500 30,986 (2,514) Fund balances,beginning of year 441,781 498,081 523,886 25,805 Fund balances,end of year $ 550,281 $ 531,581 $ 554,872 $ 23,291 34 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGETAND ACTUAL- INTER-AGENCY COMMUNICATIONS FUND YEAR ENDED SEPTEMBER 30,2013 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 158,000 $ 176,000 $ 133,600 $ (42,400) Charges for services 63,000 66,000 66,376 376 Investment income - 8,000 8,000 7,038 (962) Total revenues 229,000 250,000 207,014 (42,986) Expenditures: Current: Personnel services 4,000 - - - Operating expense 225,000 240,000 237,912 2,088 Capital outlay - 10,000 9,701 299 Total expenditures 229,000 250,000 247,613 2,387 Excess of revenues over(under) expenditures (40,599) (40,599) Fund balances,beginning of year 1,157,829 1,182,329 1,174,383 (7,946) Fund balances,end of year $ 1,157,829 $ 1,182,329 $ 1,133,784 $ (48,545) 35 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. 36 MONROE COUNTY, FLORIDA SHERIFF SPECIAL-PURPOSE COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED SEPTEMBER 30,2013 October 1, September 30, 2012 Additions Deductions 2013 Civil Process Assets Cash and cash equivalents $ 10,120 $ 107,680 $ 107,935 $ 9,865 Total assets $ 10,120 $ 107,680 $ 107,935 $ 9,865 Liabilities Accounts payable $ 116 $ 107.906 $ 108,022 $ - Due to Board of County Commissioners 5,119 65,053 64,719 5,453 Due to other funds 37 87 - 124 Due to individuals 4,848 42,627 43,187 4,288 Total liabilities $ 10,120 $ 215,673 $ 215.928 $ 9,865 Bonds Assets Cash and cash equivalents $ 1,420,880 $ 743,364 $ 933,774 $ 1.230,470 Due from others - 500 - 500 Total assets $ 1,420,880 $ 743,864 $ 933,774 $ 1,230,970 Liabilities Due to individuals $ 1,420,880 $ 743,864 $ 933,774 $ 1,230,970 Total liabilities $ 1,420,880 $ 743,864 $ 933,774 $ 1,230,970 Inmate Assets Cash and cash equivalents $ 31,684 $ 892,908 $ 874,963 $ 49,629 Due from others(Touch Pay) 6,842 691,747 684,659 13,930 Total assets $ 38,526 $ 1.584,655 $ 1,559,622 $ 63,559 Liabilities Accounts payable $ 13,075 $ 275,538 $ 259,323 $ 29,290 Due to General Fund 3,535 56,248 55,310 4,473 Due to Commissary fund 7,757 153,185 144,111 16,831 Due to individuals 14,159 899.996 901.190 12,965 Total liabilities $ 38,526 $ 1,384,967 $ 1,359,934 $ 63,559 Total All Agency Funds Assets Cash and cash equivalents $ 1,462,684 $ 1,743,952 $ 1,916,672 $ 1,289,964 Due from others 6,842 692,247 684,659 14,430 Total assets $ 1,469,526 $ 2,436,199 $ 2,601,331 $ 1,304,394 Liabilities Accounts payable $ 13,191 $ 383.444 $ 367,345 $ 29,290 Due to Board of County Commissioners 5,119 65,053 64,719 5,453 Due to other funds 11,329 209,520 199,421 21,428 Due to individuals 1,439,887 1,686,487 1,878,151 1,248,223 Total liabilities $ 1,469,526 $ 2,344,504 $ 2,509,636 $ 1,304,394 37 SUPPLEMENTARY REPORTS OF INDEPENDENT AUDITOR Cherry Bekaert"P No CPA--5 Advisor.. Report of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida: We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards issued by the Comptroller General of the United States, the special-purpose 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, 2013, and the related notes to the financial statements, and have issued our report thereon dated March 16, 2014 for the purpose of compliance with Section 218.39(2), Florida Statutes and Chapter 10.550, Rules of the Auditor General-Local Govemmental Entity Audits. Internal Control over Financial Reporting In planning and performing our audit, we considered the Sheriffs internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the special-purpose financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriffs internal control. Accordingly, we do not express an opinion on the effectiveness of the Sheriffs internal control A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Sheriffs special- purpose financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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 Govemment Auditing Standards. 38 Purpose of this Report This report is intended solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. �-L4 Orlando, Florida March 16, 2014 39 Cherry Bekaert"' CPAs«Advisor; Independent Auditor's Management Letter To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida: We have audited the special-purpose 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, 2013, and have issued our report thereon dated March 16, 2014. 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 Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Special-Purpose Financial Statements Performed in Accordance with Government Auditing Standards. Disclosures in that report, dated March 16, 2014, 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-Local Governmental Entity Audits, which govern the conduct of local government entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors report. Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial report. No recommendations were made in the preceding annual financial audit report. Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit of the special-purpose financial statements of the Sheriff, nothing came to our attention that could cause us to believe that the Sheriff was in noncompliance with Section 218.415 regarding the investment of public funds. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial. management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements or abuse, that have occurred, or are likely to have occurred, that have an effect on the special-purpose financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit,we did not have any such findings. Section 10.554(1)(i)5., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the special-purpose 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. The purpose of this management letter is to communicate certain matters prescribed in Chapter 10.550, Rules of Auditor General.Accordingly, this management letter is not suitable for any other purpose. Orlando, Florida March 16, 2014 40