Loading...
Fiscal Year 2008 MONROE COUNTY, FLORIDA SUPERVISOR OF ELECTIONS Financial Statements For the Year Ended September 30, 2008 MONROE COUNTY, FLORIDA SUPERVISOR OF ELECTIONS Table of Contents Pa4e 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 Notes to Financial Statements 6 - 10 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues and Expenditures - Budget and Actual - General Fund 11 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--------------------------------------------------12 - 13 Independent Auditors' Management Letter _______________________________________________________________________14 - 15 . 1 NNE 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, 2008, which collectively comprise the Supervisor of Elections' 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 Govemmental Entity Audits, and are not intended to be a complete presentation of the financial position of Monroe County, Florida, and the results of its operations and the cash flows of its proprietary funds in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each of the major funds of the Supervisor of Elections as of September 30, 2008, 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 18, 2009 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 Govemment Auditing Standards and should be considered in assessing the results of our audit. 2 The budgetary comparison schedule on page 11 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. CHERRY, BEKAERT & HOLLAND, L.L.P. Orlando, Florida January 18, 2009 3 BASIC FINANCIAL STATEMENTS MONROE COUNTY, FLORIDA SUPERVISOR OF ELECTIONS Balance Sheet Governmental Funds September 30, 2008 Major Non-Major Fund Fund General Special Fund Revenue Totals ASSETS Assets Cash and cash equivalents $ 190,424 $ 17,662 $ 208,086 Due from others 130 - 130 Prepaid expenses 17,033 - 17,033 Total assets $ 207,587 $ 17,662 $ 225,249 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 101,149 $ - $ 101,149 Accrued wages and benefits payable 34,957 - 34,957 Due to Board of County Commissioners 71,481 - 71,481 Total liabilities 207,587 - 207,587 Fund balances - 17,662 17,662 Total liabilities and fund balances $ 207,587 $ 17,662 $ 225,249 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, 2008 Major Non-Major Fund Fund General Special Fund Revenue Totals Revenues Intergovernmental $ - $ 9,043 $ 9,043 Investment income 5,731 42 5,773 Miscellaneous 8,020 - 8,020 Total revenues 13,751 9,085 22,836 Expenditures Current: Personnel services 876,817 9,546 886,363 Operating expenditures 515,291 11,049 526,340 Capital outlay 87,406 30,960 118,366 Total expenditures 1,479,514 51,555 1,531,069 Excess of revenues over (under) expenditures (1,465,763) (42,470) (1,508,233) Other financing sources (uses) Transfer from Board of County Commissioners 1,537,244 1,356 1,538,600 Transfer to Board of County Commissioners (71,481) w 71,481 Total financing sources (uses) 1,465,763 1,356 1,467,119 Net change in fund balance - (41,114) (41,114) Fund balance, beginning of year - 58,776 58,776 Fund balance, end of year $ - $ 17,662 $ 17,662 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, 2008 Note 'I --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 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 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. Major Fund 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. Non-Major 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. 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. 6 MONROE COUNTY, FLORIDA SUPERVISOR OF ELECTIONS Notes to Financial Statements Year Ended September 30, 2008 Note 1 —Summary of significant accounting policies (continued) 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 $78,115 at September 30, 2008, 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, 2008, the Supervisor of Elections has demand deposits with a carrying amount of$208,086 and a bank balance of$209,814. 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, and 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 7 MONROE COUNTY, FLORIDA SUPERVISOR OF ELECTIONS Notes to Financial Statements Year Ended September 30, 2008 Note 3—Retirement system (continued) ("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 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, PO Box 9000, Tallahassee, FL 32315-9000, 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, 2008 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, 2008 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, 2008, the Supervisor of Elections contributed to the plan an amount equal to 11.28% of covered payroll. Supervisor of Elections contributions to the FRS for the fiscal years ending September 30, 2006 through 2008 were $58,926, $67,703 and $69,612, 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—Other postemployment benefits (OPEB) The Monroe County Board of County Commissioners (BOCC) administers a single-employer defined benefit healthcare plan (the "Plan"). In accordance with Section 112.0801 of the Florida Statutes, the BOCC is required to provide retirees with the opportunity to participate in this Plan because Monroe County provides a medical plan to active County employees. The Plan provides health care benefits including medical coverage,' prescription drug benefits, dental benefits and life insurance coverage 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. The BOCC approves the rates for the coming calendar year for the retiree and County contributions at an open session prior to the annual enrollment process. Eligibility for post employment participation in the Plan is limited to full time employees of the Board, the Constitutional Officers, the Land Authority, and retirees. Retirees hired after October 1, 2001 must contribute the premium determined by the BOCC for all participants prior to the annual enrollment process. Retirees hired before October 1, 2001, who retire from the County with 10 years of full-time service and are covered by the Florida Retirement System, must contribute $50 from each Florida Health Insurance Subsidy payment from the Florida Retirement System. Other conditions apply to employees hired before October 1, 2001 who have retired before the normal retirement date, have not reached age 60, and whose age and years of service to the County do not equal 70. In conjunction with the implementation of GASB Statement 45 during fiscal year 2008, the BOCC engaged an actuarial firm to determine the County's actuarially determined annual required contribution and unfunded obligation. The Supervisor of Elections 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. 9 MONROE COUNTY, FLORIDA SUPERVISOR OF ELECTIONS Notes to Financial Statements Year Ended September 30, 2008 Note 5—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 $t 00,000 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 6—Reclassification The funding received from the Board of County Commissioners (the BOCC) is required in these financial statements as an 'other financing source" transfer pursuant to changes in the Florida Uniform Accounting System. In prior years, the BOCC funding was reported as revenue from charges for services. Note 7—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. 10 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA SUPERVISOR OF ELECTIONS Schedule of Revenues and Expenditures Budget and Actual - General Fund Year Ended September 30, 2008 General Fund Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Investment income $ - $ - $ 5,731 $ 5,731 Miscellaneous - - 8,020 8,020 Total revenues - - 13,751 13,751 Expenditures Current; Personnel services 921,700 921,700 876,817 44,883 Operating expenditures 430,544 530,544 515,291 15,253 Capital outlay 85,000 85,000 87,406 (2,406) Total expenditures 1,437,244 1,537,244 1,479,514 57,730 Excess of revenues over (under) expenditures (1,437,244) (1,537,244) (1,465,763) 71,481 Other financing sources (uses) Transfer from Board of County Commissioners 1,437,244 1,537,244 1,537,244 - Transfer to Board of County Commissioners - (71,481) (71,481) Total financing sources (uses) 1,437,244 1,537,244 1,465,763 (71,481) Excess of revenues over expenditures and other financing sources (uses) $ - $ - $ - $ - I SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS a ujrrwim Punuc CONSULTANTS 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, 2008, which collectively comprise the Supervisor of Elections' basic financial statements, and have issued our report thereon dated J2nuary 18, 2009 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 Elections' 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 Elections' internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Supervisor of Elections' 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 Elections' 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 Elections' financial statements that is more than inconsequential will not be prevented or detected by the Supervisor of Elections' 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 Elections' internal control. 12 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 Elections' 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. This report is intended solely for the information of the Supervisor of Elections, management, 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. CHERRY, BEKAERT& HOLLAND, L.L.P. Orlando, Florida January 18, 2009 13 r " 1 • CONSULTANTS 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 for the year ended September 30, 2008, which collectively comprise the Supervisor of Elections' basic financial statements, and have issued our report thereon dated January 18, 2009. 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 Govemment 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. Disclosures in that report, dated January 18, 2009 should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local government entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors' report. Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address significant findings and recommendations made in the preceding annual financial report. There were no recommendations made in the preceding year's annual financial report. Section 10.554(1)(1)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.145, Florida Statutes, regarding the investment of public funds. In connection with our audit, nothing came to our attention that could cause us to believe that the Supervisor of Elections was in noncompliance with Section 218.415, Florida Statutes, regarding the investment of public funds. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address 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. In connection with our audit, we did not have any such findings. 14 Section 10.554(1)(i)5., Rules of the Auditor General, requires, based on professional judgment, the reporting of the following matters that are inconsequential to the financial statements, considering both quantitative and qualitative factors: (1) violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, and (2) control deficiencies that are not significant deficiencies, including, but not limited to; (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (b) failures to properly record financial transactions; and (c) inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of the auditor. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the 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 of the Supervisor of Elections, management, 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. CHERRY, BEKAERT & HOLLAND, L.L.P. Orlando, Florida January 18, 2009 15