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Fiscal Year 2014 MONROE COUNTY, FLORIDA SHERIFF j FINANCIAL STATEMENTS As of and for the Year Ended September 30, 2014 And Reports of Independent Auditor l i i r III ��% MONROE COUNTY, FLORIDA SHERIFF TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR 1-2 ------------------------------------------------------------------------------------------ FINANCIAL STATEMENTS Balance Sheet-Governmental Funds 3 ------------------------------------------------------------------------------------------------------ Statement of Revenues, Expenditures and Changes In Fund Balances- Governmental Funds 4 ----------------------------------------------------------------------------------------------- Statement of Fiduciary Assets and Liabilities-Agency Funds__________________________________________________________________ 5 Notes to 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 Balances- Budget and Actual— Major Special Revenue Funds_______________________________________________________15-21 OTHER SUPPLEMENTARY INFORMATION Combining Statement of General, Trauma Star and Radio Communications Funds by Service Area.............................................................................................22 Non-Major Special Revenue Funds Description____________________________________________________________________________________ 23 Combining Balance Sheet— Non-Major Governmental Funds- Special Revenue Funds---- -----------------------------------------------------------------------------------------------------------24-26 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 Combining Statement of Changes in Fiduciary Assets and Liabilities- AIIAgency Funds----------------------------------------------------------------------------------------------------------------------------- 37 SUPPLEMENTARY REPORTS Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards-----------------------------------------------------------------------38-39 Independent Auditor's Management Letter,______________ ________ ________ ________ ________ ________ ________ __________40-41 Report of Independent Accountant on Compliance with Local Government Investment Policies...............42 uuu III" B e �e ,, Report of Independent Auditor To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida: Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Sheriff (the "Sheriff') as of and for the year ended September 30, 2014, and the related notes to the financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Sheriffs preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Sheriffs internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Sheriff as of September 30, 2014, and the respective changes in financial position thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each fund of Monroe County, Florida that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2014, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. 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 financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements 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 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 financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with 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 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 17, 2015 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. 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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, 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 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. 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. The 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 FINANCIAL STATEMENTS SEPTEMBER 30, 2014 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. Florida PRIME is a 2a7-like fund stated at share price, which is substantially the same as fair value. 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$241,600 at September 30, 2014. 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 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 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 FINANCIAL STATEMENTS SEPTEMBER 30, 2014 Note 2—Deposits and investments Cash and cash equivalents at September 30, 2014 consist of the following: Type Credit Quality Rating Fair Value Demand and time deposits N/A $ 12,530,166 SBA Unrated 155,080 Municipal Bonds 4,779,704 17,464,950 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, federal agencies and instrumentalities and municipal securities issued by U.S. state and local governments having, at time of purchase, a stand-alone credit rating of AA or better assigned by two or more recognized credit rating agencies or a short-term credit rating of AI/PI or equivalent from one or more recognized credit rating agencies. As of September 30, 2014, the Sheriff had $155,080 invested in the SBA and $4,779,704 in Municipal Bonds, which was 39% of the Sheriffs total cash and cash equivalents. Of the $155,080 invested in the SBA, the Sheriff had 100% invested in Florida PRIME. The Municipal Bonds the Sheriff has invested are rated by Standard and Poor's from AA- through AAA and the ratings on the municipal bonds from Moody's are rated from AA2 through AAA. Florida PRIME is rated by Standard and Poor's. The current rating is AAAm. The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2014 is 39 days. Next interest rate reset days for floating rate securities are used in the calculation of the WAM. The amount of $1,519,103 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 FINANCIAL STATEMENTS SEPTEMBER 30, 2014 Note 3—Interfund receivables, payables, and transfers Interfund receivables and payables at September 30, 2014 consist of the following: Due From Due to Other Funds Other Funds General $ 348,214 $ 709,638 HIDTA 6,975 472,703 Grants - 197,361 Federal forfeiture 19,804 23,514 E-911 - 23,467 Other governmental 1,141,868 82,335 Agency 54 7,897 $ 1,516,915 $ 1,516,915 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 10/01/2013 Additions Deductions 09/30/2014 Buildings and improvements $ 2,748,651 $ 46,121 $ - $ 2,794,772 Equipment 35,554,635 6,507,504 1,507,560 40,554,579 $ 38,303,286 $ 6,553,625 $ 1,507,560 $ 43,349,351 Accumulated depreciation $ 20,953,058 $ 2,747,567 $ 1,245,684 $ 22,454,941 Note S—Long-term debt The following is a summary of changes in the Sheriffs long-term debt for the year ended September 30, 2014, presented in the government-wide financial statements of the County: Compensated Absences Long-term debt, beginning of year $ 6,663,191 Additions 3,720,693 Reductions (3,542,112) Long-term debt, end of year $ 6,841,772 9 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 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 benefit, 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 Act of the Florida Legislature. 10 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 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 received 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% 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% 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 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 Deferred Retirement Option Program (DROP) members are required to contribute 3% of their salary to FRS. In addition to member contributions, governmental employees 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, 2013 through June 30, 2014 were as follows: regular employees, 6.95%, special risk employees, 19.06%, elected officials, 33.03%, senior management 18.31%, and DROP participants 12.84%. Effective July 1, 2014 the contribution rates by job class were as follows: regular employees, 7.37%, special risk employees, 19.82%, elected officials, 43.24%, senior management 21.14%, and DROP participants 12.28%. The Sheriff contributed to the FRS an amount equal to 17.69% of covered payroll during the fiscal year ended September 30, 2014. Sheriffs contributions to the FRS for the fiscal years ended September 30, 2012 through 2014 were $4,030,391, $4,604,652 and $5,648,876, 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 Sheriffs 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 Mass Mutual Financial Group and AIG Valic group variable annuity contract. Contributions are invested at the employee's 11 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 Note 7—Retirement plan (continued) 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. Monroe County Sheriffs office also offers a profit-sharing pension plan known as the 401(a) Discretionary Contribution Pension Plan. Only full-time employees of the Sheriffs 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 class 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 $22,739 for the year ended September 30, 2014 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 Statute 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, the Authority, 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 maintain their group health insurance benefits with Monroe County following their retirement provided they contribute a premium of $5.00 per month for each year of creditable service with the (FRS) at the time of retirement with Monroe County and will pay at a minimum $50 per month up to the maximum of$150 per month. Retirees who have met the requirements for early retirement, have not achieved age 60 and whose age and years of service do not equal 70 (rule of 70) must pay the standard monthly premium until the age criteria or the rule of 70 is met. At that time, the retiree's cost of participation will be a premium of$5.00 per month for each year of creditable service with the (FRS) at the time of retirement with Monroe County and will pay at a minimum $50 per month up to the maximum of $150 per month. Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are met. 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. 12 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 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. 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, 2014 were $5,780,558. The following is a schedule by years of minimum future rentals under operating leases as of September 30, 2014: Year Ending September 30, 2015 $ 4,160,240 2016 3,107,454 2017 220,069 2018 101,121 Total $ 7,588,884 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 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 44,436,526 $ 46,042,569 $ 46,042,569 $ Investment income - - 50,742 50,742 Miscellaneous income - 842,219 1,132,189 289,970 Total revenues 44,436,526 46,884,788 47,225,500 340,712 Expenditures: Current: Personnel services 33,450,254 32,140,254 31,792,774 347,480 Operating expenses 9,946,901 10,306,901 9,805,389 501,512 Capital outlay 919,371 4,217,633 4,055,464 162,169 Total expenditures 44,316,526 46,664,788 45,653,627 1,011,161 Excess of revenues over(under) expenditures 120,000 220,000 1,571,873 1,351,873 Other financing sources(uses): Insurance proceeds - - 20,525 20,525 Transfer(to)/from Board of County Commissioners (1,200,583) (1,200,583) Transfer(to)/from other governments (221,728) (221,728) Transfers(to)/from other funds (120,000) (220,000) (170,087) 49,913 Total other financing sources(uses) (120,000) (220,000) (1,571,873) (1,351,873) 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 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 1,607,981 $ 1,607,981 $ 1,607,981 $ Total revenues 1,607,981 1,607,981 1,607,981 - Expenditures: Current: Personnel services 499,211 499,211 486,232 12,979 Operating expense 1,093,770 1,093,770 914,719 179,051 Capital outlay 15,000 15,000 2,035 12,965 Total expenditures 1,607,981 1,607,981 1,402,986 204,995 Excess of revenues over(under) expenditures - - 204,995 204,995 Other financing sources(uses): Transfer(to)/from Board of County Commissioners (204,995) (204,995) Total other financing sources(uses) (204,995) (204,995) 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 BUDGET AND ACTUAL- RADIO COMMUNICATIONS YEAR ENDED SEPTEMBER 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 358,652 $ 358,652 $ 358,652 $ Total revenues 358,652 358,652 358,652 - Expenditures: Current: Personnel services 147,624 167,624 159,569 8,055 Operating expense 203,028 158,028 111,344 46,684 Capital outlay 8,000 33,000 23,562 9,438 Total expenditures 358,652 358,652 294,475 64,177 Excess of revenues over(under) expenditures - - 64,177 64,177 Other financing sources(uses): Transfer(to)/from Board of County Commissioners (64,177) (64,177) Total other financing sources(uses) (64,177) (64,177) 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 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other government units $ 20,000,000 $ 20,025,000 $ 19,540,567 $ (484,433) Total revenues 20,000,000 20,025,000 19,540,567 (484,433) Expenditures: Current: Personnel services 4,500,000 4,500,000 4,241,139 258,861 Operating expenses 14,875,000 14,875,000 14,673,354 201,646 Capital outlay 625,000 650,000 598,863 51,137 Total expenditures 20,000,000 20,025,000 19,513,356 511,644 Excess of revenues over(under)expenditures - 27,211 27,211 Other financing sources: Transfer(to)/from other governments (27,211) (27,211) Total other financing sources (27,211) (27,211) Excess of revenues and other financing sources over 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 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 550,000 $ 530,000 $ 450,798 $ (79,202) Intergovernmental-other government units 500,000 450,000 278,477 (171,523) Total revenues 1,050,000 980,000 729,275 (250,725) Expenditures: Current: Personnel services 520,000 545,000 536,459 8,541 Operating expenses 150,000 120,000 114,531 5,469 Capital outlay 375,000 315,000 308,639 6,361 Total expenditures 1,045,000 980,000 959,629 20,371 Excess of revenues over(under)expenditures 5,000 - (230,354) (230,354) Other financing sources: Transfers(to)/from other funds - 167,935 167,935 Total other financing sources - 167,935 167,935 Excess of revenues over expenditures and other financing sources(uses) 5,000 - (62,419) (62,419) Fund balances,beginning of year 149,010 23,010 18,256 (4,754) Fund balances,end of year $ 154,010 $ 23,010 $ (44,163) $ (67,173) 18 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-SHARED ASSET FORFEITURE FUND YEAR ENDED SEPTEMBER 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Investment income $ 240,000 $ 24,000 $ 23,385 $ 615 Total revenues 240,000 24,000 23,385 615 Expenditures: Current: Personnel services 500 2,200 2,188 12 Operating expenses 500 500 377 123 Aid to other governments/non-profits 200,000 119,500 115,079 4,421 Total expenditures 201,000 122,200 117,644 4,556 Excess of revenues over(under)expenditures 39,000 (98,200) (94,259) (3,941) Fund balances,beginning of year 5,245,547 5,212,547 5,220,446 7,899 Fund balances,end of year $ 5,284,547 $ 5,114,347 $ 5,126,187 $ 3,958 19 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- FEDERAL FORFEITURE FUND YEAR ENDED SEPTEMBER 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-Other government units $ $ $ 642,713 $ 642,713 Investment income 10,098 10,098 Total revenues 652,811 652,811 Expenditures: Current: Personnel services 75,000 65,000 62,660 2,340 Operating expenses 15,000 20,000 18,453 1,547 Capital expenses 80,000 30,000 26,313 3,687 Aid to other governments 550,000 500,000 492,660 7,340 Total expenditures 720,000 615,000 600,086 14,914 Excess of revenues over(under) expenditures (720,000) (615,000) 52,725 667,725 Fund balances,beginning of year 564,232 155,832 2,051,429 1,895,597 Fund balances,end of year $ (155,768) $ (459,168) $ 2,104,154 $ 2,563,322 20 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- E-911 YEAR ENDED SEPTEMBER 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 495,000 $ 480,000 $ 449,689 $ (30,311) Investment income 20,000 20,000 12,883 (7,117) Total revenues 515,000 500,000 462,572 (37,428) Expenditures: Current: Personnel services 105,000 105,500 104,904 596 Operating expense 130,000 169,500 162,565 6,935 Capital outlay 5,000 775,000 769,941 5,059 Total expenditures 240,000 1,050,000 1,037,410 12,590 Excess of revenues over(under) expenditures 275,000 (550,000) (574,838) (24,838) Other financing sources: Transfers(to)/from Board of County Commissioners Transfers(to)/from other governments - (3,078) (3,078) Total other financing sources - (3,078) (3,078) Excess of revenues over expenditures and other financing sources(uses) 275,000 (550,000) (577,916) (27,916) Fund balances,beginning of year 2,503,051 2,500,051 2,514,860 14,809 Fund balances,end of year $ 2,778,051 $ 1,950,051 $ 1,936,944 $ (13,107) 21 OTHER SUPPLEMENTARY INFORMATION N N N N W M to N � CO to to to N I� to O � W � r- to O W � N to N W � N I� to ' O O O to I- r O O Oo O N (N N O o) O O to M d) M M N to � N O N O _ E No M N � N N O N W N O S I- f �T �T M V3 R N N W �T N to r- � � O � O � C O O to M to O co m rn ch �T �T to U) N o) O CO O O N M M N 'a c E E E O u N d) to O to to to N N co co co O m W N W W N O W W o) W N r- r- (o N N Iz �T �T O O N O O O O E CO CO � o) �T N N N 7 (0 f fR fR W N W O �T W �T r- M u) Co �T N O I- N O N r- N N N N r- to I- to r- M �T O W to to r- O W L N O N N to to M O O O o M N to N W O to to N O N LD N O _ N Imo_ N L O CO to N N to O O co r rn � cn Q W Q N N W W W r- r- N v) O N W � �T N I- d) O M o) N N N N N U d) r- W to W to N to I- O N LD O N N M CO N N CO O CO O CO O to M N N N CO I- N O N to _ CO I- CO v) W N O O O o) Cl) o) N Cl) N Cl) } CD V7 0 z co co o o Cl) Cl) Cl) a Cl) Cl) ro 't Cl) rn 0 ro " o W N _ _ N O � I- Cl) Cl) Cl) N o O O Cl) NI: N CM CM CM z C to to r- Cl) N N N O o Cl) Cl) N Cl) o U z UDI O O ro r Cl) ro O ro ro LD r �T r O �T rn �T ro ch ch ch L N N I- W �T O L I- r- O �2 M c0 O � 0 � � 5 (D 0 LD cl o) r r r 0 a tOO tOO N M z N N W co M Q O O O O W N d E O (D cl) Q H V3 V3 N Q Q H � LL Q O LL o D: W w W z E .�-. 2 w a E a (D o Q W °- O oN a) c E ° °w n U a O w U a m U o o a D a > LL W U o a L w o `m } w m m E `m o `m o > z Q E ° >o 2 a ED 0 0 0 >o c o m o ° m o o E E E E m e a N W N c S N OX N a D wo U o 0 0 0 9 N UO z o c c m a Q > s Q o 0 0 0 > a`) a`) W p E c c O o o c c O z z N O .-. O �_ o C _ o c0 c0 m W a N a) Q — c0 rn rn rn rn rn o 9 9 Z C c g F aci a) Q ca o cn c c c c o cn o _ a O U F a) Q > c Q o c F cxi a a OU > w U w O ~ ~ ~ ~ w i i 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 deterjuveniles 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 COMBINING BALANCE SHEET- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2014 Law Enforcement Teen Court Trust Fund ASSETS Cash and cash equivalents $ - $ 47 Investments - - Due from Board of County Commissioners - - Due from other funds 36,250 - Due from governmental units 10,556 - Due from others - - Interest receivable - - Total assets $ 46,806 $ 47 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - Due to Board of County Commissioners - 12 Due to other governmental units - - Due to other funds - 35 Due to others - - Unearned revenues - - Total liabilities - 47 Deferred Inflows of Resources: Unavailable revenues - - Fund balances,restricted Teen court program 46,806 - Inter-agency communication program - - Inmate welfare program - - Fund balances,committed Contract administration - - Total fund balances 46,806 - Total liabilities,deferred inflows of resources and fund balances $ 46,806 $ 47 24 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2014 State Contract Forfeiture Administrative Commissary ASSETS Cash and cash equivalents $ 123,161 $ - $ 628,628 Investments - - - Due from Board of County Commissioners - 1,706 - Due from other funds 35 1,101,432 4,151 Due from governmental units - 106,766 - Due from others - 3,060 39,037 Interest receivable - - - Total assets $ 123,196 $ 1,212,964 $ 671,816 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 6,820 $ - $ 16,346 Due to Board of County Commissioners 110,699 70,431 - Due to other governmental units - 569 - Due to other funds - 51,223 18,289 Due to others 5,677 - - Unearned revenues - - - Totalliabilities 123,196 122,223 34,635 Deferred Inflows of Resources: Unavailable revenues - 350 - Fund balances,restricted Teen court program - - - Inter-agency communication program - - - Inmate welfare program - - 637,181 Fund balances,committed Contract administration - 1,090,391 - Total fund balances - 1,090,391 637,181 Total liabilities,deferred inflows of resources and fund balances $ 123,196 $ 1,212,964 $ 671,816 25 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30, 2014 Total Nonmajor Inter-Agency Special Revenue Communications Funds ASSETS Cash and cash equivalents $ 406,606 $ 1,158,442 Investments - - Due from Board of County Commissioners 36,519 38,225 Due from other funds - 1,141,868 Due from governmental units 100 117,422 Due from others - 42,097 Interest receivable - - Total assets $ 443,225 $ 2,498,054 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 23,166 Due to Board of County Commissioners - 181,142 Due to other governmental units - 569 Due to other funds 12,788 82,335 Due to others - 5,677 Unearned revenues - - Total liabilities 12,788 292,889 Deferred Inflows of Resources: Unavailable revenues - 350 Fund balances,restricted Teen court program - 46,806 Inter-agency communication program 430,437 430,437 Inmate welfare program - 637,181 Fund balances,committed Contract administration - 1,090,391 Total fund balances 430,437 2,204,815 Total liabilities,deferred inflows of resources and fund balances $ 443,225 $ 2,498,054 26 MONROE COUNTY,FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30,2014 Law Enforcement Teen Court Trust Fund Revenues: Intergovernmental-BOCC $ $ 59,738 Intergovernmental-other government units - Charges for services 56,040 Fines and forfeitures - Investment income Miscellaneous - - Total revenues 56,040 59,738 Expenditures: Current: Personnel services 29,872 - Operating expenses 4,659 Capital outlay - - Aid to other governments/non-profits - 56,251 Total expenditures 34,531 56,251 Excess of revenues over (under)expenditures 21,509 3,487 Other financing sources(uses): Transfers(to)/from other funds - (3,487) Transfer(to)/from Board of County Commissioners Transfer(to)/from other governments Total other financing sources(uses) - (3,487) Excess of revenues over expenditures and other financing sources(uses) 21,509 Fund balances,beginning of year 25,297 Fund balances,end of year $ 46,806 $ 27 MONROE COUNTY,FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30,2014 State Contract Forfeiture Administrative Commissary Revenues: Intergovernmental-BOCC $ $ 8,210 $ Intergovernmental-other government units 472,050 - Charges for services 3,389,159 433,360 Fines and forfeitures 141,476 - - Investment income 421 1,818 2,964 Miscellaneous income - - 11,655 Total revenues 141,897 3,871,237 447,979 Expenditures: Current: Personnel services - 3,209,007 168,108 Operating expenses 31,198 290,051 201,050 Capital outlay - 139,719 - Aid to other governments/non-profits - - - Total expenditures 31,198 3,638,777 369,158 Excess of revenues over(under) expenditures 110,699 232,460 78,821 Other financing sources(uses): Transfers(to)/from other funds - 2,151 3,488 Transfer(to)/from Board of County Commissioners (110,699) - - Transfer(to)/from other governments (119,361) - Total other financing sources(uses) (110,699) (117,210) 3,488 Excess of revenues over expenditures and other financing sources(uses) 115,250 82,309 Fund balances,beginning of year 975,141 554,872 Fund balances,end of year $ $ 1,090,391 $ 637,181 28 MONROE COUNTY,FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30,2014 Total Nonmajor Inter-Agency Special Revenue Communications Funds Revenues: Intergovernmental-BOCC $ 135,680 $ 203,628 Intergovernmental-other government units - 472,050 Charges for services 27,390 3,905,949 Fines and forfeitures - 141,476 Investment income 2,833 8,036 Miscellaneous income - 11,655 Total revenues 165,903 4,742,794 Expenditures: Current: Personnel services 818 3,407,805 Operating expenses 239,343 766,301 Capital outlay 629,089 768,808 Aid to other governments/non-profits - 56,251 Total expenditures 869,250 4,999,165 Excess of revenues over(under) expenditures (703,347) (256,371) Other financing sources(uses): Transfers(to)/from other funds 2,152 Transfer(to)/from Board of County Commissioners (110,699) Transfer(to)/from other governments (119,361) Total other financing sources(uses) (227,908) Excess of revenues over expenditures and other financing sources(uses) (703,347) (484,279) Fund balances,beginning of year 1,133,784 2,689,094 Fund balances,end of year $ 430,437 $ 2,204,815 29 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-TEEN COURT FUND YEAR ENDED SEPTEMBER 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 60,000 $ 60,000 $ 56,040 $ (3,960) Total revenues 60,000 60,000 56,040 (3,960) Expenditures: Current: Personnel services 50,000 40,000 29,872 10,128 Operating expense 7,000 7,000 4,659 2,341 Total expenditures 57,000 47,000 34,531 12,469 Excess of revenues over(under)expenditures 3,000 13,000 21,509 8,509 Excess of revenues over expenditures and other financing sources(uses) 3,000 13,000 21,509 8,509 Fund balances,beginning of year 28,361 25,561 25,297 (264) Fund balances,end of year $ 31,361 $ 38,561 $ 46,806 $ 8,245 30 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- LAW ENFORCEMENT TRUST FUND YEAR ENDED SEPTEMBER 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 45,000 $ 61,000 $ 59,738 $ (1,262) Total revenues 45,000 61,000 59,738 (1,262) Expenditures: Current: Aid to other governments/non-profits 45,000 61,000 56,251 4,749 Total expenditures 45,000 61,000 56,251 4,749 Excess of revenues over(under)expenditures - - 3,487 3,487 Other financing sources Transfers(to)/from other funds (3,487) (3,487) Total other financing sources (3,487) (3,487) 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 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Fines and forfeitures $ 114,500 $ 144,500 $ 141,476 $ (3,024) Investment income 500 500 421 (79) Total revenues 115,000 145,000 141,897 (3,103) Expenditures: Current: Operating expenses 64,000 33,000 31,198 1,802 Capital outlay 1,000 - - - Total expenditures 65,000 33,000 31,198 1,802 Excess of revenues over(under) expenditures 50,000 112,000 110,699 (1,301) Other financing uses: Transfer(to)/from Board of County Commissioners (50,000) (112,000) (110,699) 1,301 Total other financing uses (50,000) (112,000) (110,699) 1,301 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 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 8,500 $ 8,400 $ 8,210 $ (190) Intergovernmental-other governmental units 445,000 470,000 472,050 2,050 Charges for services 3,145,500 3,394,600 3,389,159 (5,441) Interest income 1,000 2,000 1,818 (182) Total revenues 3,600,000 3,875,000 3,871,237 (3,763) Expenditures: Current: Personnel 3,050,000 3,230,000 3,209,007 20,993 Operating expenses 300,000 300,000 290,051 9,949 Capital expenses 120,000 145,000 139,719 5,281 Total expenditures 3,470,000 3,675,000 3,638,777 36,223 Excess of revenues over(under) expenditures 130,000 200,000 232,460 32,460 Other financing sources(uses) Transfers(to)/from other funds - - 2,151 2,151 Transfers(to)/from other governments (125,000) (119,361) 5,639 Total other financing sources(uses) - (125,000) (117,210) 7,790 Excess of revenues over expenditures and other financing sources(uses) 130,000 75,000 115,250 40,250 Fund balances,beginning of year 953,937 913,437 975,141 61,704 Fund balances,end of year $ 1,083,937 $ 988,437 $ 1,090,391 $ 101,954 33 MONROE COUNTY,FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-COMMISSARY FUND YEAR ENDED SEPTEMBER 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 406,500 $ 430,000 $ 433,360 $ 3,360 Investment income 3,400 3,000 2,964 (36) Miscellaneous income 5,100 12,000 11,655 (345) Total revenues 415,000 445,000 447,979 2,979 Expenditures: Current: Personnel expenses 160,000 170,000 168,108 1,892 Operating expenses 205,000 205,000 201,050 3,950 Capital outlay 20,000 - - - Total expenditures 385,000 375,000 369,158 5,842 Excess of revenues over(under) expenditures 30,000 70,000 78,821 8,821 Other financing sources(uses) Transfers(to)/from other funds 3,500 3,500 3,488 (12) Total other financing sources(uses) 3,500 3,500 3,488 (12) Excess of revenues over expenditures and other financing sources(uses) 33,500 73,500 82,309 8,809 Fund balances,beginning of year 441,781 531,581 554,872 23,291 Fund balances,end of year $ 475,281 $ 605,081 $ 637,181 $ 32,100 34 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- INTER-AGENCY COMMUNICATIONS FUND YEAR ENDED SEPTEMBER 30,2014 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 175,000 $ 145,000 $ 135,680 $ (9,320) Charges for services 65,000 27,000 27,390 390 Investment income 10,000 3,000 2,833 (167) Total revenues 250,000 175,000 165,903 (9,097) Expenditures: Current: Personnel services - 1,000 818 182 Operating expense 240,000 250,000 239,343 10,657 Capital outlay 10,000 650,000 629,089 20,911 Total expenditures 250,000 901,000 869,250 31,750 Excess of revenues over(under) expenditures - (726,000) (703,347) 22,653 Fund balances,beginning of year 1,157,829 1,182,329 1,133,784 (48,545) Fund balances,end of year $ 1,157,829 $ 456,329 $ 430,437 $ (25,892) 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 COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED SEPTEMBER 30,2014 October 1, September 30, 2013 Additions Deductions 2014 Civil Process Assets Cash and cash equivalent; $ 9,865 $ 107,631 $ 100,552 $ 16,944 Total assets $ 9,865 $ 107,631 $ 100,552 $ 16,944 Liabilities Accounts payable $ - $ 117,372 $ 117,372 $ - Due to Board of County Commissioners 5,453 73,950 69,486 9,917 Due to other funds 124 - 124 - Due to other governments - 2,020 - 2,020 Due to individual: 4,288 51,105 50,386 5,007 Total liabilities $ 9,865 $ 244,447 $ 237,368 $ 16,944 Bonds Assets Cash and cash equivalent! $ 1,230,470 $ 1,869,706 $ 2,368,346 $ 731,830 Due from others 500 - 500 - Total assets $ 1,230,970 $ 1,869,706 $ 2,368,846 $ 731,830 Liabilities Due to individuals $ 1,230,970 $ 1,869,701 $ 2,368,846 $ 731,825 Due to other funds - 5 - 5 Total liabilities $ 1,230,970 $ 1,869,706 $ 2,368,846 $ 731,830 Inmate Assets Cash and cash equivalent; $ 49,629 $ 981,412 $ 999,281 $ 31,760 Due from others(TouchPay 13,930 795,674 803,787 5,817 Due from other funds - 54 - 54 Total assets $ 63,559 $ 1,777,140 $ 1,803,068 $ 37,631 Liabilities Accounts payable $ 29,290 $ 324,947 $ 349,697 $ 4,540 Due to General Func 4,473 64,908 65,606 3,775 Due to Commissary func 16,831 170,376 183,090 4,117 Due to individuals 12,965 959,639 947,409 25,195 Due to others - 4 - 4 Total liabilities $ 63,559 $ 1,519,874 $ 1,545,8 22 $ 37,631 Total All Aoencv Funds Assets Cash and cash equivalent! $ 1,289,964 $ 2,958,749 $ 3,468,179 $ 780,534 Due from others 14,430 795,674 804,287 5,817 Due from other funds - 54 - 54 Total assets $ 1,304,394 $ 3,754,477 $ 4,272,466 $ 786,405 Liabilities Accounts payable $ 29,290 $ 442,319 $ 467,069 $ 4,540 Due to Board of County Commissioner 5,453 73,950 69,486 9,917 Due to other funds 21,428 235,289 248,820 7,897 Due to other government: - 2,020 - 2,020 Due to individuals 1,248,223 2,880,445 3,366,641 762,027 Due to others - 4 - 4 Total liabilities $ 1,304,394 $ 3,634,027 $ 4,152,016 $ 786,405 37 SUPPLEMENTARY REPORTS III" B e �e ,, Report of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable 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 Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Sheriff (the "Sheriff') as of and for the year ended September 30, 2014, and the related notes to the financial statements, and have issued our report thereon dated March 17, 2015 for the purpose of compliance with Section 218.29(2), Florida Statutes and Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits. Internal Control over Financial Reporting In planning and performing our audit, 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 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 internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Sheriffs 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 Government 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 Sheriffs internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriffs internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Orlando, Florida March 17, 2015 39 Cherry1B e �e ,, Independent Auditor's Management Letter To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida: Report on the Financial Statements We have audited the financial statements of the Monroe County, Florida Sheriff(the "Sheriff'), as of and for the year ended September 30, 2014, and have issued our report thereon dated March 17, 2015. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reports We have issued our Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Report of Independent Accountant on Compliance with Local Government Investment Policies regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 17, 2015, should be considered in conjunction with this management letter. Prior Audit Findings 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 audit report. There were no recommendations made in the preceding audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in 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. Other Matters Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 40 Purpose of this Letter The purpose of this management letter is to communicate certain matters prescribed in Chapter 10.550, Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose. Orlando, Florida March 17, 2015 41 1111U Cherry1B e �e ,, Report of Independent Accountant on Compliance with Local Government Investment Policies To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida: Report on Compliance We have examined the Monroe County, Florida Sheriff (the "Sheriff'), compliance with local government investment policy requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2014. Management is responsible for the Sheriff's compliance with those requirements. Our responsibility is to express an opinion on the Sheriffs compliance based on our examination. Scope Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Sheriffs compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriffs compliance with specified requirements. Opinion In our opinion, the Sheriff complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014. Orlando, Florida March 17, 2015 42