Fiscal Year 2007 MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Financial Statements
For the Year Ended
September 30, 2007
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Table of Contents
Page
Independent Auditors' Report.......................................
BASIC FINANCIAL STATEMENTS
Balance Sheet—Governmental Fends
.......................... .................................. ................. 4
Statement of Revenues., Expenditures and Changes
In Fund Balances- Governmental Funds
.....
Notes to Financial Statements 6 - 9
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues and Expenditures - Budget and Actual-
General 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 Govemment Auditing Standards
Independent Auditors' Management Letter .13 - 14
� a
CERTIFIED PL'BI_IC
ACCOUNTANTS&
COMULTANTs
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, 2007, 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 Note 1, the accompanying financial statements were prepared for the purpose
of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor
General-Local Governmental Entity Audits, and are not intended to be a complete presentation
of the financial position of Monroe County, Florida, and the results of its operations and the
cash flows of its proprietary funds in conformity with accounting principles generally accepted in
the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of each of the major funds of the Supervisor of Elections as of September
30, 2007, and the respective changes in financial position thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
January 23, 2008 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 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 and should be considered in assessing the results of our
audit.
2
The budgetary comparison schedule on page 90 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 parties.
Orlando, Florida
January 23, 2008
3
BASIC FINANCIAL STATEMENTS
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Balance Sheet
Governmental Funds
September 30, 2007
Major Funds
General Special
ASSETS
Fund Revenue Totals
-- •—
Assets
Cash and cash equivalents $ 194,015 $ 58,776 $ 252,791
Due from other governments 13,745 - 13,745
Prepaid expenses 12599
} 12,599
Deposit on equipment 63,611 - 63,611
Total assets $ 283,970 $ 58,776 $ 342,746
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $ 25,366 $ - $ 25,366
Accrued wages and benefits payable 28,635 -
28,635
Due to Board of County Commissioners 229,969 - 229,969
Total liabilities 283,970 - 283,970
Fund balances - _ 58,776 58,776
Total liabilities and fund balances $ 283,970 $ 58,776 $ 342,746
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, 2007
Major Funds
General Special
Revenues
Fund Revenue Totals
�` '
Charges for services $1,330,156 $ - $ 1,330,156
Intergovernmental - 17,207 17,207
Investment income 1,120 149 1,269
Miscellaneous 3,379 - 3,379
Total revenues 1,334,655 17,356 1,352,011
Expenditures
Current:
Personnel services 774,445 7,440 781,885
Operating expenditures 323,568 14,601 338,169
Capital outlay 5,703 - 5,703
Debt service:
Principal 183,189 - 183,189
Interest 970 -
974
Total expenditures 1,287,875 22,041 1,309,916
Excess of revenues over expenditures 46,780 (4,685) 42,095
Other financing sources (uses)
Capital lease proceeds 183189 183,189
Transfer to Board of County Commissioners _ (229,96a - (229,969)
Total financing sources (uses) (46,780) - (46,780)
Net change in fund balance - (4,685) (4,685)
Fund balance, beginning of year - 63,461 63,461
Fund balance, end of year $ - $ 58,776 $ 58,776
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, 2007
Note 7 --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 in accordance with Chapter 10.550,
Rules of the Auditor General, which requires the Supervisor of Elections to only present fund
financial statements. Accordingly, due to the omission of government-wide financial statements,
related disclosures and management's discussion and analysis, these financial statements do
not present a complete presentation of the financial position of the Supervisor of Elections as of
September 30, 2007 and the changes in its financial position for the year then ended, as
contemplated by Statement No. 34 of the Governmental Accounting Standards Board, Basic
Financial Statements -- and Management's Discussion and Analysis — for State and Local
Governments.
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.
6
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2007
Note 1 —Summary of significant accounting policies (continued)
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.
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' cash and cash equivalents consist
of demand deposits.
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
$47,073 at September 30, 2007, are included in the government-wide financial statements of
the County.
Use of estimates-The preparation of financial statements requires management to make use
of estimates that affect reported amounts. Actual results could differ from estimates.
Note 2—Deposits and Investments
As of September 30, 2007, the Supervisor of Elections has bank balances of$252,791.
Demand and time deposits are fully insured by the Federal Deposit Insurance Corporation up to
$100,000 at each institution 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, and
direct obligations of the U.S. Treasury and federal agencies and instrumentalities.
7
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2007
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
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 are computed on the basis of age, average final compensation, and service credit.
Regular class employees who retire at or after age 62 with 6 years of credited service or 30
years of service regardless of age are entitled to a retirement benefit payable monthly for life,
equal to 1.6% of their final average compensation for each year of credited service. Vested
employees with less than 30 years of service may retire before age 62 and receive reduced
retirement benefits. Special risk class employees (sworn law enforcement officers, firefighters,
and correctional officers) who retire at or after age 55 with 6 years of credited service, or with
25,years of service regardless of age, are entitled to a retirement benefit payable monthly for
life equal to 3.0% of their final average compensation for each year of credited service. Senior
Management Service class employees who retire at or after age 62 with at least 6 years of
credited 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 who elect 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.
8
MONROE COUNTY, FLORIDA
SUPERVISOR OF ELECTIONS
Notes to Financial Statements
Year Ended September 30, 2007
Note 3—Retirement system (continued)
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.
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, 2007 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%. During the fiscal year ended
September 30, 2007, the Supervisor of Elections contributed to the plan an amount equal to
11.30% of covered payroll. Supervisor of Elections contributions to the FRS for the fiscal years
ending September 30, 2005 through 2007 were $48,114, $58,926 and $67,703, 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, 2007
General Fund
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Charges for services $1,332,400 $1,330,156 $1,330,156 $ -
Investment income - - 1,120 1,120
Miscellaneous - - 3,379 33379
Total revenues 1,332,400 1,330,156 1,334,655 4,499
Expenditures
Current:
Personnel services 816,500 816,500 774,445 42,055
Operating expenditures 404,900 402,656 323,568 79,088
Capital outlay 45,000 45,000 5,703 39,297
Debt service:
Principal 61,800 61,800 183,189 (121,389)
Interest 4,200 4,200 970 3,230
Total expenditures 1,332,400 1,330,156 1,287,875 42,281
Excess of revenues
over expenditures - - 46,780 46,780
Other financing sources
(uses)
Capital lease proceeds 183,189 183,189
Transfer to Board of
County Commissioners - - (229,969) _ 2 9,969)
Total financing sources
(uses) - - (46,780) (46,780)
Excess of revenues over
expenditures and other
financing sources (uses) $ - $ _ $ _ $
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
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 Monroe County, Florida
Supervisor of Elections (the "Supervisor of Elections") as of and for the year ended September
30, 2007, which comprise the Supervisor of Election's basic financial statements, and have
issued our report thereon dated January 23, 2008 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. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Supervisor of Election's internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Supervisor of Election's internal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the Supervisor of
Election's internal control over financial reporting.
A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control
deficiency, or combination of control deficiencies, that adversely affects the Supervisor of
Election's ability to initiate, authorize, record, process, or report financial data reliably in
accordance with generally accepted accounting principles such that there is more than a
remote likelihood that a misstatement of the Supervisor of Election's financial statements that is
more than inconsequential will not be prevented or detected by the Supervisor of Election's
internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements
will not be prevented or detected by the Supervisor of Election's internal control.
11
Our consideration of internal control over financial reporting was for. the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Supervisor of Election's financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under
Govemment Auditing Standards.
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 23, 2008
12
mmo��l
I n I.r m
CFRTIFTEI)PUBLIC
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 the Monroe County, Florida Supervisor of Elections
(the "Supervisor of Elections"), as of and for the year ended September 30, 2007, which
comprise the Supervisor of Election's basic financial statements, and have issued our report
thereon dated January 23, 2008 for the purpose of compliance with Section 218.39(2), Florida
Statutes, and Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. We have issued
our Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards, dated January 23, 2008, and it should be
considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General. Those rules (Section 10.554(1)(i)1) require that we address in the management letter,
if not already addressed in the auditors' report on internal control over financial reporting,
compliance and other matters, whether or not corrective actions have been taken to address
significant findings and recommendations made in the preceding annual financial audit report.
There were no recommendations in the preceding year's annual financial audit report.
The Rules of the Auditor General (Section 10.554(1)(i)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)(i)3) require disclosure in the management
letter of any recommendations to improve the Supervisor of Election's financial management,
accounting procedures and internal controls. There were no recommendations in connection
with the fiscal 2007 financial statement audit.
13
The Rules of the Auditor General (Section 10.554(1)(i)4) require disclosure in the management
letter of any violations of provisions of contracts and grant agreements or abuse that have an
effect on the financial statements that is less than material but more than inconsequential. There
were no such matters noted.
The Rules of the Auditor General (Section 10.554(1)(i)5) allow for the following matters that are
inconsequential to the financial statements, considering both quantitative and qualitative factors,
to be reported based on professional judgment: a. immaterial violations of laws, rules,
regulations and contractual provisions or abuse; b. immaterial improper expenditures or legal
acts; and c. control deficiencies that are not significant deficiencies. There are'no such matters
reported.
The Rules of the Auditor General (Section 10.554(1)(i)6) 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 report is intended solely for the information and use of management, the State of Florida
Office of the Auditor General, and applicable state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
Orlando, Florida
January 23, 2008
14
94
���• ".rj HARRY L. SAWYER, JR.
• '• • Supervisor of Elections
0
+�G O
Monroe County Florida
OR Of E www.keys-elections.org
Honorable Danny L. Kolhage
Clerk of the Courts
Finance Department
500 Whitehead Street
Key West, FI 33040
March 3, 2008
Mr. Kolhage,
We are in receipt of the audit report for Fiscal Year ending 2007.
There were no f i nd i ngs.
If you have any questions please call me at ext. 3064.
Thank you,
Harry L. Sawy r, Jr.
Supervisor of Elections
Key West Office: 530 Whitehead Street#101 • Key West,Florida 33040-6547• (305)292-3416
Narathon 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