Fiscal Year 2006 MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Financial Statements
For the Year Ended
September 30, 2006
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Table of Contents
Page
Independent Auditors' Report__ --- 2 - 3
- BASIC FINANCIAL STATEMENTS
Balance Sheet—Governmental Funds 4
Statement of Revenues, Expenditures and Changes
In Fund Balances - Governmental Funds 5
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Notes to Financial Statements 6 - 9
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures - Budget and Actual -
Generai Fund 10
SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS
Independent Auditors' Report on Internal Control over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards------------------------------------------- ------11 - 12
independent Auditors' Management Letter_______ ------------------13- 14
• t
INDEPENDENT AUDITORS' REPORT
To the Honorable Harry L. Sawyer, Jr.,
Supervisor of Elections of Monroe County, Florida:
We have audited the accompanying financial statements of each major fund of the Monroe
County, Florida Supervisor of Elections (the "Supervisor of Elections") as of and for the year
ended September 30, 2006, which collectively comprise the Supervisor of Election's basic
financial statements as listed in the table of contents. These financial statements are the
responsibility of the Supervisor of Elections' management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
As discussed in Dote 1, the accompanying financial statements were prepared for the purpose
of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General-Local Governmental Entity Audits, and are not intended to be a complete presentation
of the financial position of Monroe County, Florida, and the results of its operations and the
cash flows of its proprietary funds in conformity with accounting principles generally accepted in
the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of each of the major funds of the Supervisor of Elections as of September
30, 2006, and the respective changes in financial position thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Govemment Auditing Standards, we have also issued our report dated
January 22, 2007 on our consideration of the Supervisor of Elections' internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe
the scope of our testing of intemai 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
2
with Government Auditing Standards and should be considered in assessing the results of our
audit.
The budgetary comparison schedule on page 10 is not a required part of the basic financial
statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted primarily of
inquiries of management regarding the methods of measurement and presentation of.the
required supplementary information. However, we did not audit the information and we express
no opinion on it.
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
specified panties.
,
! L. L . P.
Orlando, Florida
January 22, 2007
3
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Balance Sheet
Governmental Funds
September 30, 2006
Major Funds
General Special
Fund Revenue Totals
ASSETS
Assets
Cash and cash equivalents $ 117,892 $ 63,461 $ 181,353
Prepaid expenses 12,334 - 12,334
Total assets $ 130,226 $ 63,461 $ 193,687
LIABILITIES AND FUND BALANCES
Liabilities
- Accounts payable $ 70,771 $ - $ 70,771
Accrued wages and benefits payable 29,171 - 29,171
Due to Board of County Commissioners 30,284 - 30,284
Total liabilities 130,226 - 130,226
Fund balances - 63,461 63,461
Total liabilities and fund balances $ 130,226 $ 63,461 $ 193,687
The notes to the financial statements 4
are an integral part of this statement.
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Statement of Revenues, Expenditures and Changes in Fund Balances
_ . Governmental Funds
Year Ended September 30, 2006
Major Funds
General Special
` Fund Revenue Totals
Revenues
Intergovernmental:
Board of County Commissioners appropriation $ 1,223,814 $ - $ 1,223,814
Other government agencies - 168,148 168,148
- Investment income 1,312 183 1,495
Miscellaneous 9,679 - 9,679
- Total revenues 1,234,805 168,331 1,403,136
Expenditures
Current:
Personnel services 785,487 - 785,487
Operating expenditures 344,063 17,890 361,953
Capital outlay 74,971 138,224 213,195
Total expenditures 1,204,521 156,114 1,360,635
Excess of revenues over expenditures 30,284 12,217 42,501
Other financing uses
Transfer to Board of County Commissioners (30,284) - (30,284)
12,217 12,217
Fund balance, beginning of year - 51,244 51,244
Fund balance, end c f year $ - $ 63,461 $ 63,461
The notes to the financial statements 5
are an integral part of this statement.
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2006
Note 1 — Summary of significant accounting policies
Reporting entity — The Monroe County, Florida Supervisor of Elections (the "Supervisor of
Elections") is a separately elected county official established pursuant to the Constitution of the
State of Florida. The Supervisor of Elections' 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 Statements No. 14 and No. 39 of
the Governmental Accounting Standards Board (GASB). Although the Supervisor of Elections'
office is operationally autonomous, it does not hold sufficient corporate powers of its own to be
considered a legally separate entity for financial reporting purposes. Therefore, the Supervisor
of Elections is reported as part of the primary government of the County.
Description of funds — The accounting records are organized for reporting purposes on the
basis of two governmental funds.
General Fund — The General Fund is a governmental fund used to account for all
revenues and expenditures applicable to the general operations of the Supervisor of
Elections that are not required legally or by accounting principles generally accepted in
the United States of America to be accounted for in another fund.
Special Revenue Fund — The Special Revenue Fund is used to account for the
proceeds of specific revenue sources that are legally restricted or committed to
expenditures for specific purposes. The Special Revenue Fund proceeds are to be used
exclusively for voter education, the purchase of accessible voting systems, to recruit and
train poll workers and to convert and integrate the county voter registration system.
Measurement focus, basis of accounting, and financial statement presentation — The
Supervisor of Elections' financial statements are prepared for the purpose of complying with
Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local
Governmental Entity Audits, which require the Supervisor of Elections to only present fund
financial statements. The General Fund and the Special Revenue Fund are governmental
funds which 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 Supervisor of Elections
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, expenditures related to compensated absences and claims and
judgments are recorded only when payment is due.
The extent to which General Fund revenues exceed General Fund expenditures is reflected as
transfers out and as liabilities to the Monroe County Board of County Commissioners.
6
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2006
Note 1 -Summary of significant accounting policies (continued)
Budgetary requirements - Expenditures-are controlled by appropriations in accordance with
the budget requirements set forth in the Florida Statutes. The General Fund budget is prepared
on a basis consistent with accounting principles generally accepted in the United States of
America. The Special Revenue Fund does not have a legally adopted budget.
Cash and cash equivalents - The Supervisor of Elections' presents as cash and cash
equivalents all demand deposits and other highly liquid investments until maturities of 90 days
or less when purchased. Cash and cash equivalents consist of various demand deposit
accounts.
Capital assets-Tangible personal property used in the Supervisor of Elections' operations are
_ recorded as expenditures in the General Fund at the time assets are received and a liability is
incurred. Purchased assets are capitalized at historical cost in the government-wide financial
statements of the County. In addition, the County provides office space used by the Supervisor
of Elections at no charge.
Compensated absences - The Supervisor of Elections permits employees to accumulate
earned but unused vacation and sick pay benefits. Related long-term obligations, amounting to
$51,531 at September 30, 2006, are included the government-wide financial statements of the
County.
` Use of estimates - The preparation of financial statements requires management to make use
of estimates that affect reported amounts. Actual results could differ from estimates.
Note 2- Deposits and investments
As of September 30, 2006, the Supervisor of Elections has demand deposits of$181,353.
Demand and time deposits are fully insured by the Federal Deposit Insurance Corporation or
are covered by the State of Florida collateral pool, a multiple institution pool with the ability to
assess its members for collateral if a member institution fails.
Florida Statutes and the Supervisor's 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.
Note 3- Retirement system
Plan description - The Supervisor of Elections' employees participate in the Florida
Retirement System ("FRS"), administered by the Florida Department of Administration.
Employees elect to participate in either the defined benefit plan ("Pension Plan"), a cost
sharing, multiple-employer, defined benefit retirement plan, or the defined contribution plan
(Investment Plan) under the FRS. As a general rule, membership in the FRS is compulsory for
7
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2006
Note 3— Retirement system (continued)
all employees working in a regularly established position for a state agency, county
government, district school board, state university, community college, or a participating city or
special district within the State of Florida. The FRS provides retirement and disability benefits,
annual cost-of-living adjustments, and death benefits to Plan members and beneficiaries.
_ Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida
Administrative Code. Amendments to the law can be made only by an act of the Florida
Legislature.
Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. Regular class employees who retire at or after age 62 with 6
years of credited service or 30 years of service regardless of age are entitled to a retirement
benefit payable monthly for life, equal to 1.6% of their final average compensation for each year
of credited service. Vested employees with less than 30 years of service may retire before age
62 and receive reduced retirement benefits. Special risk class employees (swom law
enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with 6
years of credited service, or with 25 years of service regardless of age, are entitled to a
retirement benefit payable monthly for life equal to 3.0% of their final average compensation for
each year of credited service. Senior Management Service class employees who retire at or
after age 62 with at least 6 years of credited 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 for each year of credited service. Elected Officers' class employees who retire at
or after age 62 with at least 6 years of credited service or 30 years of service regardless of age
are entitled to a retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges and
justices) of their final average compensation for each year of credited service. A post-
employment health insurance subsidy is also provided to eligible retired employees through the
FRS in accordance with Florida Statutes.
In addition to the above benefits, the FRS administers a Deferred Retirement Option Program
("DROP"). This program allows eligible employees to defer receipt of monthly retirement
benefit payments while continuing employment with a 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.
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report
may be obtained by writing to the State of Florida Division of Retirement, Department of
Management Services, 2639 North Monroe Street, Building C, Tallahassee, Florida 32299-1560
or accessing their internet site at www.frs.state.fl.us.
8
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2006
Note 3— Retirement system (continued)
Funding policy — The FRS is noncontributory for members. Governmental employers are
_ - required to make contributions to the FRS based on statewide contribution rates. The
contribution rates by job class at September 30, 2006 were as follows: regular, 9.85%, special
risk, 20.92%; special risk administrative support, 12.55%; county elected officers, 16.53%;
senior management, 13.12%; and DROP participants, 10.91%. These rates, which became
effective on July 1, 2006, represented a significant increase for all job classes, as compared to
the rates that were in effect for the first nine months of the 2006 fiscal year. During the fiscal
year ended September 30, 2006, the Supervisor of Elections contributed to the plan an amount
equal to 7.50% of covered payroll. Supervisor of Elections contributions to the FRS for the fiscal
years ending September 30, 2004 through 2006 were $44,819, $48,114 and $58,926
respectively, which were equal to the required contributions for each fiscal year. The Supervisor
of Elections 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.
Note 4— Risk management
The Supervisor of Elections 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 Supervisor of Elections participates in the coverage provided by the Board for
Workers' Compensation, Group Insurance, and Risk Management internal service funds. Under
these programs, Workers' Compensation provides $1,000,000 coverage per claim for regular
employees. Risk Management has a $5,000,000 excess insurance policy for general liability
claims with a $100,000 self-insured retention, and building property damage is covered for the
actual value of the buildings with a deductible between $100,000 and $250,000. Deductibles for
windstorm and flood vary by location. Monroe County purchases commercial insurance for
claims in excess of coverage provided by the funds and for all other risks of loss. Settled
claims have not exceeded this commercial coverage in any of the past three years. The
Supervisor of Elections 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 5— Litigation
The Supervisor of Elections is a party from time to time in various lawsuits and other claims
incidental to the ordinary course of its operation, some of which are covered by the Board's self-
insurance program. 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 Supervisor of Elections' financial position.
9
REQUIRED SUPPLEMENTARY INFORMATION
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Schedule of Revenues and Expenditures
_ Budget and Actual - General Fund
Year Ended September 30, 2006
General Fund
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Board of County Commissioners
appropriation $ 1,223,814 $ 1,223,814 $ 1,223,814 $ -
Investment income - - 1,312 1,312
Miscellaneous - - 9,679 9,679
Total revenues 1,223,814 1,223,814 1,234,805 10,991
Expenditures
Current
Personnel services 773,894 773,894 785,487 (11,593)
` Operating expenditures 404,920 404,920 344,063 60,857
Capital outlay 45,000 45,000 74,971 (29,971)
* Total expenditures 1,223,814 1,223,814 1,204,521 19,293
Excess of revenues
over expenditures - - 30,284 30,284
Other financing uses
Transfer to Board of
County Commissioners - - (30,284) (30,284)
Excess of revenues over
expenditures and other
financing uses $ - $ - $ - $
10
SUPPLEMENTARY INDEPENDENT
AUDITORS' REPORTS
i
=11FIED PUBLIC
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Harry L. Sawyer, Jr.,
Supervisor of Elections of Monroe County, Florida:
We have audited the financial statements of each major fund of the Monroe County, Florida
Supervisor of Elections (the "Supervisor of Elections") as of and for the year ended September
30, 2006, which collectively comprise the Supervisor of Elections' basic financial statements,
and have issued our report thereon dated .January 22, 2007 for the purpose of compliance with
Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local
Governmental Entity Audits. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States.
Internal Control over Financials Reporting
In planning and performing our audit, we considered the Supervisor of Elections' internal control
over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the internal
control over financial reporting. Our consideration of the internal control over financial reporting
would not necessarily disclose all matters in the internal control over financial reporting that
might be material, weaknesses. A material weakness is a reportable condition in which the
design or operation of one or more of the internal control components does not reduce to a
relatively low level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited may occur and not be detected
_ within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over financial reporting and its operations
that we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Supervisor of Elections' financial
statements are free of material misstatement, we performed tests of the Supervisor of
Elections' compliance with certain provisions of law, 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
11
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.
This report is intended solely for the information and use of management and applicable state
agencies, and is not intended to be and should not be used by anyone other than these
specified parties.
Orlando, Florida
` January 22, 2007
12
INDEPENDENT AUDITORS' MANAGEMENT LETTER
To the Honorable Harry L. Sawyer, Jr.,
Supervisor of Elections of Monroe County, Florida:
We have audited the financial statements of each major fund of the Monroe County, Florida
Supervisor of Elections(the"Supervisor of Elections"),as of and forthe year ended September 30,
2006, which_collectively comprise the Supervisor of Elections' basic financial statements, and have
issued our report thereon dated January 22, 2007 for the purpose of compliance with Section
218.39(2), Florida Statutes,and Chapter 10.550,Rules of the Auditor General-Local Governmental
Entity Audits.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in GovemmentAuditing
Standards, issued by the Comptroller General of the United States. We have issued our
Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards. Disclosures in this report,which is dated January 22,2007,should
be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General. Those rules(Section 10.554(1)(h)1) require that we address in the management letter, if
not already addressed in the auditors'report on internal control over financial statement reporting,
compliance and other matters, whether or not corrective actions have been taken to address
significant findings and recommendations made in the preceding annual financial audit report.The
recommendation made in the preceding annual financial report has been corrected.
The Rules of the Auditor General(Section 10.554(1)(h)2)state that a management letter shall have
a statement as to whether or not the Supervisor of Elections complied with Section 218.415, Florida
Statutes, regarding the investment of public funds. in connection with our audit of the financial
statements of the Supervisor of Elections,the results of our tests did not indicate that the Supervisor
of Elections was in noncompliance with Section 218.415 regarding the investment of public funds.
The Rules of the Auditor General (Section 10.554(1 Xh)3) require disclosure in the management
letter any recommendations to improve the Supervisor of Elections financial management,
accounting procedures, and internal controls. There were no recommendations in connection with
the fiscal 2006 financial statement audit.
The Rules of the Auditor General (Section 10.554(1)(h)4) require disclosure in the management
letter of the following matters if not already addressed in the auditors' reports on internal controls,
compliance and internal controls:(1)violations of laws,rules,regulations,and contractual provisions
that have occurred,or are likely to have occurred;(2)improper or illegal expenditures; (3)improper
13
or inadequate accounting procedures(e.g., the omission of required disclosures from the financial
statements); (4) failures to properly record financial transactions; and (5) other inaccuracies,
shortages, defaications, and instances of fraud discovered by, or that come to the attention of,the
auditor. There were no such matters noted.
The Rules of the Auditor General(Section 10.554(1)(h)5)also require that the name or official title
and legal authority for the primary government and each component unit of the reporting entity be
disclosed in the management letter, unless disclosed in the notes to the financial statements. The
Supervisor of Elections is a separately elected county official established pursuant to the
Constitution of the State of Florida. There are no component units related to the Supervisor of
Elections.
This management letter is intended solely for the information and use of management,the State of
_ Florida Office of the Auditor General, and applicable state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
P
Orlando, Florida
January 22, 2007
14
C
..f HARRY L o SAWYER, JR.
• : : • Supervisor of Elections
Ge� O
�`'•. -;.�� Monroe County, Florida
R'p www.keys-elections.org
April 12, 2007
Honorable Danny Kolhage
Clerk of Courts
Finance Department
500 Whitehead St.
Key West, Florida
Stop 8
305.292.3560
Dear Mr. Kolhage:
The Supervisor of Elections office is in recite of our final audit report for
fiscal year ending Sept. 30, 2006.
There are no findings and we agree.
Sincerely,
%oyceG
Cc Cheril Morgan x36491 Fax: #3660
Ivey West Office: 530 Whitehead Street#101 •Ivey West,Florida 33040-6547•(305)292-3416
Marathon Office(MM 50.5): Marathon Government Annex•490 63rd St.,Ocean,Suite 130• Marathon,Florida 33050•(305)289-6017
Plantation Key Office(MM 88.5): Plantation key Government Center•88820 Overseas Highway•Tavernier,Florida 33070•(305)852-7106