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06/13/2000 Audit I , RECEIVED Mayor Shirley Freeman I . I 1 AUDIT REPORT OF CERTAIN COURT REPORTING - REVENUES & EXPENDITURES June 13, 2000 GOUNTy fib,, / �i -, to I. � * 11 ; -�i,i.l(l1= / • 0 •.,`y - ..• �O P 16 • •••• *'•• . Prepared by: Internal Audit Department Clerk of the Circuit Court Danny L. Kolhage, Clerk Monroe County, Florida GOUNry t• peci 1. r '.N r 490 COUNTY•Fy0 ;ID annp IL. 1aottjage BRANCH OFFICE CLERK OF THE CIRCUIT COURT BRANCH OFFICE 3117 OVERSEAS HIGHWAY MONROE COUNTY, 88820 OVERSEAS HIGHWAY MARATHON, FLORIDA 33050 500 WHITEHEAD STREET PLANTATION KEY, FLORIDA 33070 TEL. (305) 289-6027 KEY WEST, FLORIDA 33040 TEL. (305) 852-7145 TEL. (305) 292-3550 June 13, 2000 The Honorable Danny L. Kolhage Clerk of the Circuit Court Re: Audit Report of Certain Court Reporting Revenues and Expenditures Dear Mr. Kolhage: The Clerk's Internal Audit Department has completed an audit of certain court reporting revenues and expenditures. The scope of this audit included the review of activities associated with court reporting and the use of freelance court reporting firms. The audit objectives were to determine the degree of compliance with management's established procedures, evaluate the completeness and effectiveness of those procedures, evaluate compliance with statutory requirements, appraise the effectiveness and efficiency of operations and whether the results accomplish the goal of securing economy in expenditure of county funds. We would like to thank the Chief Judge, the Court Administrator and the Court Reporting Department for their cooperation and time while conducting the audit. The 16th Circuit's Plan for Court Reporting Services was implemented on June 30, 1995. This plan involved using court employees to provide court reporting services, both criminal and civil using a pool of reporters. As frequently happens with new programs implemented, changes were made as workload pressures were experienced. The Sixteenth Circuit discontinued reporting civil hearings effective November 1, 1998. In so ordering, the Chief Judge, in amendment to Administrative Order 2.039, noted that civil reporting by employee court reporters had unduly burdened the circuit's limited court reporting resources, that costs had outweighed collected revenues, and the market had become more competitive. i l Our audit revealed that Court Administration should address management oversight issues such as segregation of duties; the approval and selection process on freelance coverage, communication issues, employees doing business with their own agency and adherence to Guidelines issued by the Florida Supreme Court Office of the State Courts Administrator. Reporter assignment, work hours (including overtime hours), workload, and productivity must be monitored closely under the pooling system. The effectiveness of internal controls can be enhanced greatly by managerial monitoring to control costs. The audit report and audit were completed with the assistance of Patrick Blaney, CPA. The accompanying audit report is provided for your information. Additional copies of the report will be provided upon your request. Sincerely, Sandra L. Mathena, CPA, CFE Director of Internal Audit cc: Honorable Mark H. Jones, Chief Judge 16th Judicial Circuit Honorable Kirk Zuelch, State Attorney Board of County Commissioners (5) James Roberts, County Administrator Jim Hendrick, County Attorney Marva Green, External Auditor AUDIT REPORT OF CERTAIN COURT REPORTING REVENUES & EXPENDITURES TABLE OF CONTENTS Page I. SCOPE AND OBJECTIVES 1 II. METHODOLOGY 1 III. BACKGROUND 4 IV. CONCLUSIONS 5 V. AUDIT FINDINGS A.Florida Keys Reporting, Inc. 1. Unnecessary expenditures for criminal depositions 8 2. Misleading invoices submitted 9 3. Monroe County employees subcontracting for Florida Keys Reporting 11 4. Multiple invoices submitted for the same work 12 5. Noncompliance with state contract 13 B. Former Court Reporting Manager l.a Working second jobs on Monroe County time - leave not taken 14 1.b Working second jobs on Monroe County time - ambiguous work status 15 2. Personal work performed on the job 16 3. Private court reporters hired to cover criminal proceedings 17 4. Employee civil reporting continued after Amendment 98-1 18 5. Employees doing business with their own governmental agencies 19 6. Financial disclosure for employees with $1,000+ purchasing authority 20 7. Time keeping for part-time employees 21 8. Missing Circuit Court property 22 9. Monroe County phone number in private business advertisements 23 10. Unlawful travel reimbursements 24 C.Guidelines and Policy Considerations 1. Selecting temporary court reporting help 25 I- -I 2. Electronic recorder operators 26 3. Reconsideration of employee court reporters 28 VI. EXHIBITS A.Administrative Order 2.039 A B.Amendment 98-1 to Administrative Order 2.039 B C.Agreement between the State of Florida Office of the Attorney General and Florida Keys Reporting, Inc. C D.FKR Invoices & Court Reporter Acknowledgment Form D E. Double Compensation to Full-Time Employees E F. Florida Supreme Court Office of the State Courts Administrator - Guidelines and Policy Considerations For the Development of Circuit Plans for Court Reporting Services F AUDIT REPORT OF CERTAIN COURT REPORTING REVENUES & EXPENDITURES I. SCOPE AND OBJECTIVES A. At the request of the Monroe County Clerk of the Circuit Court, the Internal Audit Department has completed an audit of certain court reporting revenues and expenditures. The scope of this audit included the review of activities associated with court reporting and the use of freelance court reporting firms. B. The audit objectives were to determine the degree of compliance with management's established procedures, evaluate the completeness and effectiveness of those ' procedures, evaluate compliance with statutory requirements and appraise the effectiveness and efficiency of operations. II. METHODOLOGY A. The following individuals were interviewed during the audit to obtain information about the court reporting function: 1. Court Administrator 2. Administrative Assistant III 3. Court Reporter Manager 4. Official Employee Court Reporters 5. Former Court Reporting Manager 6. Former Employee Court Reporters 7. Former Scopist 8. Owner of National Reporting Service 9. Owner of Laws Reporting, Inc. 10. Owner of Florida Keys Reporting, Inc. 11. Atkinson Baker, Inc. Customer Service 12. Owner of All Keys Reporting 13. Owner of Associated Court Reporters of Monroe County, Inc. 14. Owner of All Florida Reporting, Inc. 15. Palm Beach County Court Reporter Manager 16. Labor Attorney B. The Internal Audit Department reviewed the following documents: 1. Florida Supreme Court Order No. 85,055 - In Re: Florida Rules of Judicial Administration - Court Reporting 2. Rule 2.070 Court Reporting 3. Sixteenth Judicial Circuit Administrative Order 2.039 4. Amendments to Administrative Order 2.039 5. Court Reporter Policy and Procedures 6. Office of the State Courts Administrator - Guidelines and Policy Considerations for the Development of Circuit Plans for Court Reporting Services 7. Section 112.313, Florida Statutes: Standards of conduct for public officers, employees of agencies, and local government attorneys 8. Section 112.3185 (2), Florida Statutes: Contractual Services 9. Agreement between the State of Florida Office of the Attorney General and Florida Keys Reporting, Inc. 10. Section 27.34 (2), Florida Statutes: Salaries and other related costs of State Attorneys' Offices; limitations 11. Section 287.059 (13), Florida Statutes: Procurement of personal property and services 12. Monroe County payments to freelance court reporters 13. Checks paid to court reporters and former employees by private court reporting firms 14. Bank statements 15. State warrants 16. Employee personnel files 17. Time sheets 18. Court reporter correspondence 19. Travel vouchers 20. Transcripts of depositions and court proceedings 21. Certificates of nonappearance 22. Court dockets 23. Acknowledgments of Court Reporter's Appearance. C. The Internal Audit staff completed the following procedures: 1. Reviewed invoices paid to outside court reporting firms from fiscal year October 1995 to September 1999. 2. Determined whether the court reporter indicated on the invoice was the one who actually completed the work. Spot checked depositions for private court reporting work completed by county employees, and examined those employees' time sheets. 2 3. Obtained amounts paid to county employees from the court reporting firms, and checked time sheets to verify that comp time or vacation time was used. 4. Obtained amounts paid to county employees by the State Attorney's Office. 5. Prepared a schedule of all county employee payments from outside court reporting firms, or attorneys. Indicated if work was completed during county work hours, and if vacation or comp time was used. Indicated if work was civil or criminal. 6. Reviewed Form 3's on file. The Court Reporter Policy and Procedures states: "Transcripts and Depositions for Court Appointed, Public Defender & State: After reporting one of the above fill out Form-3 and submit to the Managing Court Reporter by the 5th of each month." 7. Reviewed civil depositions filed with the Clerk's Office from October 1995 to September 1999. Spot checked for depositions completed by county employees and verified time sheets when necessary. 8. Reviewed Suncom records for Monroe County extension 3489. Documented the former Court Reporting Manager's advertising using Monroe County telephone number 292-3489. 9. Discussed results of the latest physical inventory of Court Reporting with Finance Department. 10. Searched for Circuit Court's computer disks used by the former Court Reporting Manager. 11. Secured Circuit Court's computer used by the former Court Reporting Manager. 12. Compared payments to private court reporting firms by fiscal year. Researched fluctuations and large payments to same vendor. 13. Obtained memos on procedures for assigning work to private firms. 14. Acquired documentation of employee court reporters' work completed while lengthy criminal proceedings were reported by private court reporting firms. 15. Procured Palm Beach County's court reporting policies and procedures. 16. Reviewed employee daily logs of court appearances._ 17. Examined time records to verify hours spent in court each month. 18. Reviewed appeal orders and transcripts prepared. 3 III. BACKGROUND A. The 16th Circuit's Plan for Court Reporting Services In Order No. 85,055 In Re: Florida Rules of Judicial Administration -- Court Reporting the Florida Supreme Court directed the chief judge of each judicial circuit to develop a plan for court reporting services provided at public expense. This included all criminal, juvenile, and other proceedings as required. Each circuit was to develop a plan for court reporting services after consideration of guidelines issued by the Office of the State Courts Administrator. Administrative Order 2.039 implemented the Sixteenth Judicial Circuit Court Reporting Plan on June 30, 1995. This plan involved using court employees to provide court reporting services. The Sixteenth Circuit's plan was the only one in the state to allow court employees to cover civil proceedings. See Exhibit A - Administrative Order 2.039. B. Billing for Civil Proceedings' The Sixteenth Circuit developed a procedure to bill the users of these services, because such coverage is not statutorily required to be provided at public expense. The employee court reporters recorded time attending civil proceedings on their Monroe County time sheets, and Monroe County billed their attendance to the private attorneys. The employee court reporters prepared any civil transcripts ordered on their own time, and billed the private attorneys in their own names, not as court employees. C. Cessation of Civil Reporting The Sixteenth Circuit discontinued reporting civil hearings effective November 1, 1998, by amendment to Administrative Order 2.039. The amendment noted that civil reporting by employee court reporters had unduly burdened the circuit's limited court reporting resources, that costs had outweighed collected revenues, and that the market had become more competitive. See Exhibit B - Amendment 98-1 to Administrative Order 2.039. D. Florida Keys Reporting's State Contract Florida Keys Reporting, Inc. (FKR) has held a state contract to provide court reporting services to eligible users in the Sixteenth Circuit since July 1, 1994. The Office of the Attorney General (OAG) has renewed this contract through June 30, 2000. The contract obligates FKR to accept 90% of scheduled services requested, among other conditions, and provides sanctions for noncompliance, including payments from FKR to the state as liquidated damages. See Exhibit C - Agreement between the State of Florida Office of the Attorney General and Florida Keys Reporting, Inc. 4 l _� IV. CONCLUSIONS A. Monroe County and the State Attorney's Office (SAO) have paid approximately $11,000 to Florida Keys Reporting, Inc. for criminal deposition reporting and transcription work performed by Monroe County employee court reporters. As employees, these reporters are not eligible to receive additional compensation for criminal work. B. Florida Keys Reporting, Inc. (FKR) submitted at least 84 invoices for work done by court system employee court reporters. Each invoice stated: "Reporter: Jill Middlemiss," but the forms acknowledging the reporter's appearance merely noted "Florida Keys Reporting." FKR used employee reporters' actual names in billing private attorneys or the State. Documentation clearly shows that Jill Middlemiss, owner of FKR, did not perform this work. The employee reporters said that the former Court Reporting Manager instructed them to put "Florida Keys Reporting" in the space labeled Name of Reporter on the acknowledgment form. The Court Administrator stated that had the form borne the employee court reporters' actual names instead of "Florida Keys Reporting," she never would have approved the invoices for payment, because criminal reporting was part of their job. C. FKR's state contract obligated it to perform court reporting services, and included liquidated damages and other sanctions for noncompliance. The former Court Reporting Manager directed employee court reporters to take time off from their Monroe County jobs in order to act as subcontractors of FKR. This system of employee utilization blurred these employees' status under the Fair Labor Standards Act. D. Outside court reporters submitted multiple invoices for the same work on three occasions. Court Administration should implement procedures to prevent approval of additional invoices for work already billed. E. FKR's bid for a court reporting state contract required FKR to submit resumes for each reporter who would perform services under the contract. The auditors were unable to locate any document substantiating Office of the Attorney General (OAG) approval of any of the employee court reporters working on behalf of FKR under the terms of the state contract. FKR's noncompliance with this contractual condition, coupled with the absence of actual names on the Acknowledgments of Court Reporters Appearance, resulted in ineligible personnel working under this state contract. F. The former Court Reporter Manager and some of her staff performed outside civil and criminal work during their normal Monroe County work hours, and sometimes did not use leave or compensatory time for this freelance work. Both Monroe County and private concerns paid them for their time. Court Reporting performed on Monroe County time should have been billed to the appropriate parties. 5 G. Interviews with current and former court reporting employees revealed that the former Court Reporter Manager advised them that they could complete civil transcripts on Monroe County time if they had no other work to do. Documents available to the internal auditors do not detail how much Monroe County time was used to complete freelance transcripts. H. The former Court Reporting Manager scheduled private court reporters to cover the criminal case State vs. Overton, costing Monroe County $27,068, and to report jury selection for State vs. Wallace, costing the County $7,060.50. Court Administration should confirm the necessity for private contractors before approving their use. I. Even after civil reporting by employee court reporters was discontinued by Amendment 98-1 to Administrative Order 2.039 on October 5, 1998, the former Court Reporting Manager and employee court reporters were still reporting some trials that were not required by law to be reported at public expense. J. The former Court Reporting Manager was solely responsible for scheduling private court reporting firms to cover the work load when the employee court reporters were unavailable. The former Manager and employee court reporters also performed freelance court reporting for some of these same court reporting firms. Section 112.313 (3), Florida Statutes, prohibits public employees from selling their services to their own agencies. K. The former Court Reporting Manager did not file a Statement of Financial Interests (Form 1) with the Supervisor of Elections. Section 112.3145, Florida Statutes, required any person having purchasing authority over $1,000 for a political subdivision to file this form. L. The former Court Reporting Manager tracked part-time employees' hours spent in court only. She credited the part-time employees with additional hours at the rate of one hour for every ten pages of transcription produced. This time keeping method was not among Court Administration's approved policies and procedures, nor does it appear to comply with the federal Fair Labor Standards Act. However, the former Manager stated that the Court Administrator knew of the use of this time keeping method. M.Monroe County Court Reporter Policy and Procedures states in part: "All reporters records, court notes, and computer disks are the property of the Circuit Court upon their resignation or dismissal from employment." The former Court Reporting Manager claims that all her computer disks were taken to the old jail for storage when she resigned. However, repeated searches by court staff and internal audit personnel have not located her computer disks. N. The former Court Reporting Manager used her Monroe County work telephone number in advertisements for her private court reporting business. It is documented that the 6 former Manager made appointments for freelance work during her regular Monroe County work hours. O. Monroe County reimbursed employees of National Reporting Service, Inc., $4,263.47 for travel expenses to cover seven civil trials that were not the legal responsibility of the County. Accordingly, although the Court Administrator authorized these payments, we find no statutory authority for this expenditure of public funds. P. Documentation and interviews with court reporting employees revealed that the former Court Reporting Manager and the Court Administrator appeared to prefer FKR when Plantation Key coverage would require temporarily using private court reporters. The Florida Supreme Court Office of the State Courts Administrator - Guidelines and Policy Considerations for the Development of Circuit Plans for Court Reporting Services (Guidelines) suggest using rotation lists to distribute such temporary work to avoid actual or even apparent favoritism. Q. The Guidelines include electronic recorder operators (ERO's) among its approaches for delivering court reporting services. ERO's are used to record proceedings that typically generate few transcripts. They cost less than stenographic court reporters, which any Circuit using the employee approach should consider. R. Administrative Order 2.039 established the current court reporting services plan utilizing full-time employees on Monroe County's payroll. In fact, a combination of County employee reporters, freelance reporters, and private court reporting firms presently provide court reporting services. The efficiency and effectiveness of using the employee approach to provide court reporting services should be reviewed periodically. V. AUDIT FINDINGS A. Florida Keys Reporting, Inc. 1. Unnecessary expenditures for criminal depositions Findings: Monroe County and the State Attorney's Office (SAO) have paid approximately $11,000 to Florida Keys Reporting, Inc. for criminal deposition reporting and transcription work performed by court system employee court reporters. As employees, these reporters are not eligible to receive additional compensation for criminal work. There was no coordination between Court Administration and the Key West SAO regarding the use of employee court reporters for criminal depositions. The Key West SAO was neither apprised of the availability of nor informed to utilize court system employees for depositions when Administrative Order 2.039 was instituted. If the policy had been communicated to the SAO, and the former Court Reporting Manager had scheduled them as Monroe County employees to cover the depositions, then neither Monroe County nor the SAO would have incurred these additional court reporting charges. Recommendations: 1. In order to avoid such unnecessary expenditures, Court Administration should clearly document and express the Circuit's plans and programs to all appropriate parties. 2. Employee court reporters should report criminal depositions as part of their regular duties, and without additional compensation. Court Administration's Response: 1. The original court reporting services plan did not specifically address the responsibility of employee court reporters regarding depositions taken by the State Attorney's Office (SAO). Court Administration did, however, send a copy of the plan (Administrative Order 2.039, In re: Court Reporting Services Plan) to all appropriate officers, agencies, and parties including the SAO at the time of its recording with the Clerk of the Court. When the SAO entered a contract with Florida Keys Reporting, Inc. (FKR) to provide "court reporting services", Court Administration did not receive a copy of the contract and the SAO did not initiate communication with Court Administration regarding the use of employee court reporters for their depositions. In retrospect, this is one aspect of a complex and multi-faceted court reporting services plan where there should have been better coordination between the Circuit and the SAO. 2. Administrative Order 2.039 will be amended to specifically provide that the reporting of those criminal depositions taken by the SAO for which Monroe County has the responsibility to pay are part of the regular duties of employee court reporters when they are available. In addition, employee court reporters will be prohibited from reporting these depositions, outside the scope of their employment, as private, independent contractors. 8 2. Misleading invoices submitted Findings: Florida Keys Reporting, Inc. (FKR) submitted at least 84 invoices for work done by court system employee court reporters. Each invoice identified the court reporter as: "Reporter: Jill Middlemiss," but documentation clearly shows that Jill Middlemiss, owner of FKR, did not perform this work. The former Court Reporting Manager would attend these depositions for FKR, or direct one of her employee court reporters to attend them. This differed from the way FKR billed private attorneys, in that FKR used reporters' actual names on those invoices. In billing the State, FKR alternated between using the reporters' actual names and Jill Middlemiss' name. See Exhibit D - FKR Invoices & Court Reporter Acknowledgment Form. The employee court reporters would complete the Acknowledgment of Court Reporters Appearance - Depositions, which would accompany FKR's invoices. The employee reporters stated that their former Manager instructed them to put "Florida Keys Reporting" in the space labeled "Name of Reporter." FKR would then pay the court system employee the total attendance and transcription fee paid by Monroe County or the State Attorney's Office. The Court Administrator stated that had the Acknowledgment forms borne the employee court reporters' actual names instead of "Florida Keys Reporting," she never would have approved the invoices for payment, because criminal reporting was part of their job. FKR's state contract obligated it to perform court reporting services, and included liquidated damages and other sanctions for nonperformance. Since Court Administration accepted and approved these nonspecific invoices, the taxpayers paid FKR for reporting work performed by Monroe County employees. Recommendations: 1. Court Administration should compare invoice details, such as court reporter's name, with supporting documents before approving them for payment. Vague or nonspecific documentation should be questioned. Court Administration's Response: 1. Court Administration never specifically instructed the former Court Reporting Manager and Administrative Order 2.039 did not specifically provide that employee court reporters were prohibited from attending and reporting criminal depositions under Florida Keys Reporting, Inc.'s contract with the SAO. Clearly, there was a great deal of confusion regarding this work. The invoices described as "nonspecific" did not appear so at the time they were accepted, reviewed, and approved by Court Administration. Following Court Administration's submission of invoices for payment, another level of review takes place in Monroe County's Finance Department. The invoices discussed herein were also reviewed at that level apparently without notice or concern as to the 9 documentation. Court Administration will continue to attentively scrutinize all invoices, of which there are literally thousands, prior to approval for payment. Clerk's Response: 1. The invoices referenced above were submitted to the Finance Department after approval by the Court Administrator. Because of their bulk, copies of transcripts were not attached to those invoices. The Finance Department must rely on the approval of Court Administration regarding the validity of the information on the invoices submitted for payment. 10 3. Monroe County employees subcontracting for Florida Keys Reporting Findings: FKR's state contract obligated it to perform court reporting services, and included liquidated damages and other sanctions for noncompliance. The former Court Reporting Manager directed employee court reporters to take time off from their Monroe County jobs in order to act as subcontractors of FKR. They would then report proceedings for FKR which Monroe County had already hired them to report. According to the U.S. Department of Labor, treating workers concurrently as employees and independent contractors of the same employer, involving the same work in the same workweek, is unrealistic. This system of employee utilization appears to have blurred these employees' status under the federal Fair Labor Standards Act. Recommendations: 1. Court Administration should seek a legal opinion as to whether this employment relationship complied with the conditions of the Fair Labor Standards Act. Court Administration's Response: 1. The court reporter employees were not independent contractors for the 16th Judicial Circuit under the arrangement described. The employees may have been working as independent contractors for FKR performing work for the SAO for which ultimately Monroe County was liable. However, as has been noted, this was obviously a complex and confusing area for all parties involved and it was not clearly defined in the court reporting plan that the employees were responsible for covering this work as time allowed. Further, the reporting and transcription of criminal depositions for the SAO would represent only a small fragment of the employee court reporters' overall responsibilities. For the Court, there is no blurring of these employees' status under the Fair Labor Standards Act (FLSA) - they are clearly employees and are not being treated as independent contractors by the Court. As has been previously stated, the Court will clarify the obligation of the employee reporters to report depositions for the SAO. Clerk's Response: 1. Monroe County sometimes paid these employee court reporters directly as employees, and indirectly through FKR as independent contractors for work done in the same week. This appears to meet the Department of Labor's description of "unrealistic." The former Manager's assignment of these employees to work for FKR caused these mutually exclusive relationships. 11 4. Multiple invoices submitted for the same work Findings: In two instances, a jury trial and a deposition, FKR billed Monroe County twice for the same services. Both times FKR submitted two different invoices for the same work. FKR reimbursed Monroe County for the jury trial double payment of $1,957.50. Julie Carr, a private court reporter scopist, also submitted two different $72.00 invoices to Monroe County for the same scoping work. Monroe County also paid both of those invoices. Good internal control requires procedures to detect the submission of additional invoices for work already billed. Otherwise, Monroe County may pay for the same work more than once. Recommendations: 1. Court Administration should implement procedures to prevent the approval of additional invoices for work already billed. Court Administration's Response: 1. Court Administration accepts, reviews, and approves invoices for payment for the 16th Judicial Circuit with intense scrutiny and attention to detail. It is regrettable and unfortunate that out of millions of dollars worth of invoices reviewed over more than seven years, mistakes were made causing a few invoices to be paid twice. Following Court Administration's submission of invoices for payment, another level of review takes place in Monroe County's Finance Department. The invoices discussed herein were also reviewed at that level. Court Administration is committed to exploring cost effective processes that provide 100% error free invoice submission. When Court Administration discovers errors made causing double payment, every effort is made by court staff(with a great deal of success thus far) to collect the duplicate payment. In the instance of the $1,957.50 double payment, the duplicate payment was discovered rather quickly, either by the vendor, Court Administration or the Clerk's Office, since the vendor issued a reimbursement check eight days after the duplicate payment was made. As to the $72.00 double payment, Court Administration has requested that the Clerk research whether the vendor reimbursed the second payment. If the vendor has not reimbursed the $72.00, Court Administration will attempt to collect. 12 5. Noncompliance with state contract Findings: FKR's bid for a court reporting state contract required FKR to submit resumes for each reporter who would perform services under the contract. The contract itself further required FKR to submit resumes for, and to obtain Office of the Attorney General (OAG) approval of, any additional employees not listed at the date of bid opening. Contacting the OAG revealed that FKR filed only three resumes with that office in compliance with this condition. The auditors were unable to locate any document substantiating OAG approval of the employee court reporters working on behalf of FKR under the terms of the state contract. The OAG could terminate this contract for violation of any of its covenants or agreements. FKR's noncompliance with this contractual condition, coupled with the absence of actual names on the Acknowledgments of Court Reporters Appearance, resulted in ineligible personnel working under this state contract. Recommendations: 1. The State Attorney's Office should consider contacting the OAG regarding FKR's apparent contractual noncompliance. Court Administration's Response: 1. Court Administration has no authority or control over this contractual relationship. 13 B. Former Court Reporting Manager l.a Working second jobs on Monroe County time - leave not taken Findings: The former Court Reporting Manager and some of her staff performed outside civil and criminal work during their normal Monroe County work hours, and sometimes did not take leave or compensatory time for this freelance work. These employees were paid for this outside work by private court reporting firms. Employees should have taken leave when they were absent from their positions during work hours. This practice ceased at the inception of this audit, and no longer occurs, to the best of the auditors' knowledge. The former Manager assigned the reporters to cover freelance criminal depositions for FKR, and recorded the deposition coverage in her calendar. She also signed employee court reporters' time sheets as their supervisor. She should have been aware that employee court reporters were not always taking leave to attend outside jobs, and had the employees correct their time sheets accordingly. Instead, Monroe County paid the former Court Reporting Manager and some employees for time that they did not work. See Exhibit E - Double Compensation to Full-Time Employees. Recommendations: 1. Court Administration should not allow the practice of performing outside work on Monroe County time. 2. Supervisors should not approve employees' time sheets that they know, or ought to know, are incorrect. 3. Court Administration and Monroe County should pursue restitution from the court reporter employees. Court Administration's Response: 1. At the time in question (and to this date), the 16th Judicial Circuit had in effect a clear prohibition against the performance of outside work by employee court reporters except while on annual leave or compensatory leave or after regular office hours. The instances set forth in the audit where this prohibition was apparently violated occurred without the knowledge, consent, approval or authorization of Court Administration. 2. The 16th Judicial Circuit is committed to ensuring that employee time records are accurate. Adherence to proper policies and procedures regarding the maintenance of employee time sheets has been and will continue to be emphasized to both employees and supervisors. Court Administration will closely monitor compliance. 3. Court Administration is committed to working with Monroe County in pursuing restitution from the court reporter employees and is now in a position to do so having received the findings which were omitted from the previous preliminary audit report. 14 1.b Working second jobs on Monroe County time - ambiguous work status Findings: The former Court Reporting Manager assigned National Reporting Service (NRS) to report the civil trial Hoeffer vs. AMS, Inc. The president of NRS requested the former Manager herself to report parts of this trial. The former Manager did report parts of this civil trial, and billed NRS for 701 pages of transcription from four different dates. She also billed an attorney directly for 185 transcript pages, and was paid $789.25 for that work. NRS paid her $4,206.00 for transcripts. NRS received $33,454.43 from the civil attorneys for reporting this trial: $2,954.00 for attendance, $1,979.38 for travel, and the balance for transcription. Interviews revealed that the former Court Reporting Manager instructed NRS at that time to bill the attorneys directly for travel - see finding B.10. Court Reporter Policy & Procedures permitted freelance reporting, including reporting civil trials, "provided the freelance services do not interfere with their responsibilities to the circuit court." The Court Reporter Policy & Procedures further required that, "Any freelance reporting must be taken by individual reporters while on annual leave or after regular office hours." Nothing in Administrative Order 2.039 at that time prohibited the former Court Reporting Manager from reporting civil trials, either as an independent contractor or as a Court employee. However, documentation does not clarify whether the former Manager performed this work as an independent contractor or as a Court employee. If she was an independent contractor, then she should have taken compensatory time or leave to account for her absence from work. However, on three trial dates for which she billed NRS (the fourth was a Saturday), she claimed to have worked eight, ten, and ten hours on her Monroe County time sheet. As a Court employee in that case, the former Manager would have informed Court Administration to bill the appropriate civil attorneys for her work. She also would have shown the time worked on Saturday on her time sheet. The former Manager chose neither authorized procedure, resulting in Monroe County effectively subsidizing court reporting costs in a civil trial for which it had no responsibility. If the former Manager had followed established procedures, her work at this trial would have generated revenue for Monroe County. Recommendations: 1. Court Administration should not allow the practice of performing outside work on Monroe County time. 2. Court Administration and Monroe County should pursue reimbursement from the appropriate civil attorneys. Court Administration's Response: 1. See response to Section B.1.a. above. 2. Court Administration is committed to working with Monroe County in pursuing restitution from the appropriate civil attorneys and is now in a position to do so having received the findings which were omitted from the previous preliminary audit report. 15 2. Personal work performed on the job Findings: Interviews with court reporting employees and former employees revealed that the former Court Reporting Manager said they could complete civil transcripts on Monroe County time if they had no other work to do. The former Manager adjusted schedules so that all transcripts, both criminal and civil, could be completed. Civil transcripts represented additional compensation to the employee court reporters. Employees should not use work hours to perform personal tasks. Documents available to the internal auditors do not detail how much Monroe County time was used to complete freelance transcripts. As a result, Monroe County paid some employees for time during which they did personal work. Recommendations: 1. Supervisors should not allow employees to do personal work on Monroe County time. Court Administration's Response: 1. In terms of almost any criminal transcription (aside from work performed under FKR's contract with the SAO), the employee court reporters would have been completing work well within the scope of their duties and there would have been instances when schedules would legitimately need to be adjusted to meet time deadlines for filing criminal transcripts. It is contrary to court policy for employees to perform personal work while on the job. If this occurred, it did so without the knowledge, authorization or consent of the Court Administrator. 16 3. Private court reporters hired to cover criminal proceedings Findings: The former Court Reporting Manager scheduled private court reporters to cover the criminal case State v. Overton, costing Monroe County $27,068.00, and to report jury selection for State v. Wallace, costing the County $7,060.50. According to the Supreme Court, when the record is prepared at public expense, the Court is responsible to ensure that reporting services are rendered efficiently and economically. Interviews and documentation of employee court reporter assignments indicate that employees could have reported these cases at no additional charge to Monroe County. There were other instances reported where the former Court Reporting Manager assigned employee reporters to work temporarily at remote locations, while a private court reporting firm covered a felony trial at their regular duty station. Efficiency and economy require justification of expenditures for private contractors. Recommendations: 1. Court Administration should confirm the necessity for private contractors before approving their use. Court Administration's Response: 1. The Court has made, and continues to make, every effort to ensure that reporting services are rendered efficiently and economically, keeping a watchful eye on minimizing utilization of private court reporters. The unique geographical configuration of the 16th Judicial Circuit requires at times that court reporters be in attendance in several different courts at all three courthouse facilities throughout the Keys simultaneously. In addition, changes in schedule often occur: Hearings get canceled; cases are settled or take longer than expected; emergencies arise that may require a reporter for reporting or transcription; transcription deadlines for the 3rd District Court of Appeals loom. All of these demands and vagaries of the system, coupled with limited court reporting resources, require daily and sometimes hourly judgment calls as to how, when, and where to utilize the employee reporters and when to call in outside help. It is not an exact science. The Court Reporting Manager was and is the most knowledgeable and experienced individual to make those calls. In terms of the court reporting costs in question, it is relatively easy to second-guess decisions which were made at the time. However, the Court is unable to identify an adequate factual basis upon which to conclude that these costs were incurred needlessly or as the result of mismanagement. Nonetheless, in order to impose even tighter control, the Court will be formally establishing a threshold amount beyond which managers will be required to seek approval from the Court Administrator prior to procuring goods or services. 17 4. Employee civil reporting continued after Amendment 98-1 Findings: Even after civil reporting by employee court reporters was discontinued by Amendment to Administrative Order 2.039 on October 5, 1998, the former Court Reporting Manager and employee court reporters were still reporting some civil trials that were not required by law to be reported at county expense. During the time the employee court reporters were covering civil hearings and trials they could have been covering criminal work, thus lowering the cost of freelance reporters used for criminal hearings and depositions. Recommendations: 1. Court Administration should monitor managers' and employees' activities for compliance with the Circuit's policies and procedures. Court Administration's Response: 1. Court Administration was acutely aware that following the signing of Amendment 98-1 to the court reporting plan, there was a transition period during which time judges, attorneys, employee reporters, and private reporters experienced a delay in ultimately understanding, acclimating to, and strictly adhering to the new policies. The Amendment presented a significant change in the procedure for obtaining court reporting coverage for civil proceedings, requiring a period of adjustment for all participants to adapt. Every effort was made not to continue cases that were ready for hearing or trial just because an attorney may have forgotten to get a reporter and no private reporters were available on the spur of the moment. This effort included utilizing employee reporters as a last resort. Further, as recently as five months ago, the court was still conducting legal research and fine-tuning the plan to clarify what non-criminal court events should be expected to be covered by employee reporters. However, during the transition, it was clearly the Court's expectation that the Court Reporting Manager would still oversee the program's first priority - insure that the circuit courts had court reporting coverage. 18 5. Employees doing business with their own governmental agencies Findings: The former Court Reporting Manager was solely responsible for scheduling private court reporting firms when employee court reporters were unavailable to cover the work load. The former Manager and employee court reporters also performed freelance court reporting for some of these same court reporting firms. Sometimes they performed court reporting for Monroe County as independent contractors. Section 112.313 (3), Florida Statutes, prohibits public employees from selling their services to their own agencies. Recommendations: 1. Court Administration should seek a legal opinion regarding whether this relationship violates Florida Statutes. Court Administration's Response: 1. It is the opinion of the 16th Judicial Circuit that the set of circumstances described herein does not violate Florida Statutes. The "agency" of the employee reporters is the State of Florida State Courts System 16th Judicial Circuit, not Monroe County and not the State Attorney's Office. However, in an abundance of caution, the Court will seek a legal opinion and act in accordance therewith. 19 6. Financial disclosure for employees with $1,000+ purchasing authority* Findings: The former Court Reporting Manager did not file a Statement of Financial Interests (Form 1) annually with the Supervisor of Elections. Section 112.3145, Florida Statutes, required any person having purchasing authority over $1,000* for a political subdivision to file this form. According to the Florida Commission on Ethics Guide to the Sunshine Amendment and Code of Public Officers and Employees, conflicts of interest may occur when public officials are in a position to make decisions that affect their personal financial interests. * Effective June 30, 1999, Chapter 99-399, Laws of Florida, increased this threshold to $15,000. Recommendations: 1. Court Administration should seek a legal opinion regarding which employees must file the Statement of Financial Interest (Form 1). Court Administration's Response: 1. Court Administration will seek a legal opinion regarding which employees must file the Statement of Financial Interest (Form 1). However, as noted in the Court's response to the Finding in Section B.3, the court will be establishing a threshold amount beyond which managers will be required to seek approval from the Court Administrator prior to procuring any goods or services which could render this issue moot. Please note that the threshold amount for purchasing authority as it relates to this issue was raised to $15,000 during the 1999 legislative session (Section 287.017(1)(a), Florida Statutes). 20 7. Time keeping for part-time employees Findings: The former Court Reporting Manager tracked part-time employees' hours spent in court only. She credited the part-time employees with additional hours at the rate of one hour for every ten pages of transcription produced. However, she instructed the part-time court reporters to put four hours each day on their time sheets. Each month, the former Manager would notify the part-timers of their hourly balance from her second set of time records, including any surplus or deficit of hours. These part-timers were hourly employees, which means that they were intended to be paid a fixed rate per hour. The auditors can not determine from the former Manager's method and existing documentation whether the part-time employees were properly paid. This time keeping method was not among Court Administration approved policies and procedures, nor does it appear to comply with the federal Fair Labor Standards Act. However, the former Court Reporting Manager stated that the Court Administrator knew of the use of this time keeping method. The possibility exists that Monroe County may be liable for additional compensation to the affected part-time employees. Recommendations: 1. Court Administration should clearly state that part-time employees' time is to be kept in compliance with all applicable laws, rules, and regulations. 2. Court Administration should seek a legal opinion regarding whether the former Court Reporting Manager's time keeping method for part-time court reporters complied with the Fair Labor Standards Act. Court Administration's Response: 1. Court Administration was not aware of any other method being utilized for time keeping for part-time employees and did not approve nor authorize any other method. It has always been the 16th Judicial Circuit's policy under Section 4.05, Florida State Courts System Personnel Regulations Manual, for employees to keep an accurate record of their hours worked. Court Administration was not advised by the Court Reporting Manager or by any part-time employee that an alternative time keeping method was being used. The Circuit does not now employ, nor has it employed for over a year, part-time personnel for court reporting services. 2. Court Administration will seek a legal opinion regarding whether the former Court Reporting Manager's time keeping method for part-time court reporters complied with the Fair Labor Standards Act. It is highly improbable that Monroe County would be liable for any additional compensation to the affected part-time employees since compensation would only need to be made if any of the employees actually performed over forty hours of court work in a workweek and could provide documentation reflecting same. 21 8. Missing Circuit Court property Findings: Monroe County Court Reporter Policy and Procedures states in part: "All reporters' records, court notes and computer disks are the property of the Circuit Court upon their resignation or dismissal from employment." The Guidelines additionally specify that "When court employees provide court reporting services, the county owns the record." The former Court Reporting Manager resigned effective September 3, 1999. She claims that all her computer disks were taken to the old jail for storage. However, despite repeated searches by court staff and internal audit personnel, her computer disks have not been located. Recommendations: 1. Court Administration should develop procedures to ensure recovery of Circuit Court property from employees before their termination. Court Administration's Response: 1. Exit procedures, including signed receipts, are and have been in place for several years to ensure recovery of the court's property from employees before their separation from the agency. In this particular instance, numerous attempts were made to locate and retrieve the disks described. A meeting was held between the Court Administrator, the Chief Judge and the former Court Reporting Manager at which time a request for assistance from the former Manager was made as to locating the missing disks. The former Court Reporting Manager agreed to assist and physically escorted the Chief Judge and Court Administrator to the last location of the disks to her knowledge, pointing out exactly where she had placed them. The disks' disappearance remains a mystery. The actual court reporting paper notes, however, are in the court's possession having been left by the former Court Reporting Manager and retained in storage for back up purposes. 22 9. Monroe County phone number in private business advertisements Findings: The former Court Reporting Manager used her Monroe County work telephone number in advertisements for her private court reporting business. It is documented that the former Court Reporter Manager made appointments for freelance work during her regular Monroe County work day, and if she was unavailable she would send an employee court reporter to take the job. Receiving phone calls for a private business at a Monroe County extension opens the door to conducting private business on the taxpayers' time. Recommendations: 1. Court Administration should prohibit employees from conducting private business either from their public offices, or during taxpayers' time. Court Administration's Response: 1. It has always been the policy of the 16th Judicial Circuit, albeit unwritten, to prohibit employees from using their court work telephone number in advertisements for private business. As well, employees have always been prohibited from conducting private business on work time. Court Administration had no knowledge of these activities nor approved them. 23 10. Unlawful travel reimbursements Findings: National Reporting Service, Inc. (NRS) reported seven civil trials between November 1997 and September 1998. The former Court Reporting Manager and, in at least one case, the attorneys involved, scheduled NRS to report these proceedings. Monroe County reimbursed the NRS employees $4,263.47 in travel expenses to cover these civil trials that were not the legal responsibility of the County. Monroe County did not recover these expenses from the parties to this civil litigation. The auditors have found no legal authority providing that these expenses were the responsibility of Monroe County. Accordingly, although the Court Administrator authorized these payments, they appear to be an unlawful expenditure of public funds. Recommendations: 1. Court Administration should exercise care when approving expense reimbursements for outside contractors. 2. Monroe County should proceed immediately to recover these public expenditures from the private parties involved in the litigation. Court Administration's Response: 1. Court Administration will exercise care when approving expense reimbursements for outside contractors. 2. Consistent with the procedures in the Court Reporting Plan (paragraph 7), it was the Court Reporting Manager's responsibility to insure coverage for civil court hearings and it was the historical expectation of the civil justice community that the Court would insure these hearings would be covered by a reporter. Due to the limited number of local freelance court reporters and private court reporting firms, the manager was given permission to seek assistance from outside the county which necessitated guaranteeing travel expenses. Certainly, the system would not have been well served by continuing civil cases simply because there was no way to report them. However, there does not appear to be any rule, statute or other provision which specifically authorizes these travel expenses to be paid by the County. Accordingly, efforts will be made to recover the travel expenses in question. 24 C. Guidelines and Policy Considerations 1. Selecting temporary court reporting help Findings: Documentation and interviews with court reporting employees revealed that the former Court Reporting Manager and the Court Administrator appeared to prefer FKR when Plantation Key coverage would require temporarily using private court reporters. This could appear to be favoritism on the part of the court system. Exhibit F - Florida Supreme Court Office of the State Courts Administrator - Guidelines and Policy Considerations For the Development of Circuit Plans for Court Reporting Services (Guidelines) encourages developing a list of available temporary reporters, scopists, and typists. The Guidelines further suggest using rotation lists to distribute such temporary work. Recommendations: 1. Court Administration should consider developing lists of available providers, and rotating temporary work among them to avoid actual or even apparent favoritism. Court Administration's Response: 1. There was no favoritism towards Florida Keys Reporting; it was the only provider physically located in the Upper Keys and available on short notice to provide coverage in Plantation Key. Given the geographic constraints, there could be no expectation that providers would travel 177 miles roundtrip from Key West or 80 miles roundtrip from Marathon to cover hearings and obviously they couldn't provide services within minutes of a request. The Court was always mindful of travel costs (including time and mileage) and availability of local and employee reporters when scheduling for outside reporters for Plantation Key. In addition, over time, quite a few providers would not accept work covering circuit court in Plantation Key despite the former Court Reporting Manager's efforts to develop and maintain positive working relationships with providers. Florida Keys Reporting was willing to work in the Plantation Key circuit court, proved prompt and reliable, and provided quality work for the Court. The current Court Reporting Manager will be directed to develop lists by geographical area of available providers acceptable to the Court and rotate temporary work at the respective courthouses among them. Clerk's Response: 1. Numerous instances demonstrate that freelance providers are willing to travel. For example, Sue Ex traveled 100 miles round-trip each day from Marathon to Key West for the Overton trial and the Wallace jury selection. FKR sent employees to Key West from Plantation Key to cover State Attorney depositions, receiving only a $30 attendance fee. Expenses and mileage are not paid to freelance reporters for travel. Rotation lists for the entire County would give all acceptable vendors an equal opportunity to accept or decline work. 25 2. Electronic recorder operators The Florida Supreme Court's Guidelines include electronic recorder operators (ERO's) among its approaches for delivering court reporting services. ERO's monitor proceedings with audio or video tape recorders. They are used to record proceedings that typically generate few transcripts. ERO's cost less than stenographic court reporters, which any circuit using the employee approach should consider. Recommendations: 1. Court Administration should consider utilizing electronic recorder operators as appropriate. Court Administration's Response: 1. Administrative orders (currently, #2.012 and #2.013) were originally issued in the 16th Judicial Circuit in the early 1980's authorizing and outlining the provision of electronic recordation services for both courtroom proceedings and depositions. Though the Circuit has a considerable amount of experience (over twenty years) in this method of reporting and continues to utilize it to the fullest extent possible, certain problems have arisen and the method is not always reliable. In attempting to use the method for "proceedings that typically generate few transcripts" one may not always "guess" correctly which proceeding that might be. For example, while recordation is used almost exclusively for misdemeanor proceedings an appeal (which always requires a transcript) could be filed in any misdemeanor jury trial. The circuit has experienced numerous problems in attempting to create a record on appeal from misdemeanor trial recordation. If a record is not available or is not clear, the appellate court sends the case back to the lower court to determine a set of facts stipulated by both the prosecution and the defense. These stipulated facts are then to be sent back up to the appellate court so that they may determine the merits of the appeal. It has been the experience of county court that such a stipulation by the defense never occurs. Thus, there is no choice but to dismiss the case against the criminal defendant no matter how strong the evidence might have been. Notwithstanding these critical problems, the Circuit is committed to continuing to iron out the wrinkles in the existing recordation program and to utilize it where and when possible. Concurrently, the Circuit is exploring the feasibility of replacing the existing analog equipment with new, more reliable digital recordation technology. This may necessitate the purchase of technical assistance services as well. Due to the Circuit's geographical configuration, resulting in three courthouse locations, providing no economy of scale, the lack of technical resources, and the onslaught of emerging recordation technologies, there does not appear to be reliable cost benefits at this time to purchasing the services of a recordation system's manager, operators, technicians, and transcriptionists, all of whom are necessary for an expanded recordation program. To date, Deputy Clerks have acted as in-court electronic operators at the county court level (at no additional expense to the county). 26 It should be noted that the 16th Judicial Circuit authorized the use of electronic recording equipment in the taking of depositions by the Office of the Public Defender in 1981. Since that time, the Circuit has expanded not only the program but also the court's oversight of the program to reduce and control costs for the county. Many judicial circuits in Florida do not provide such services for their respective counties. 27 3. Reconsideration of employee court reporters Administrative Order 2.039 established the present court reporting services plan which utilizes full-time judicial employees on the County's payroll. In fact, court reporting services are currently being provided by a combination of employee court reporters, freelance court reporters, and private court reporting firms. Recommendations: 1. Court Administration should periodically reevaluate the efficiency and effectiveness of using the employee approach to provide court reporting services. Court Administration's Response: 1. The Court Administrator monitors court reporting detailed expenses every month as well as scrutinizes, prior to approval, every payment for court reporting expenses. Expenses are also analyzed in conjunction with annual budget preparation. The assessment of the delivery of court reporting services is constant and ongoing. When the initial court reporting plan was developed, court reporting providers, the chief judge, and the court administrator critically reviewed the Supreme Court guidelines and attended various workshops at a statewide conference on the required change in the delivery of court reporting services. Meetings were held with officials and judges, negotiations were conducted with providers, a detailed expense analysis was undertaken and revenues were projected. It was clear that the plan was the most cost effective for the 16th Judicial Circuit. Continuously since that time, the Court and Court Administration have regularly reviewed how services are provided. This is illustrated by the changes in the way civil matters are reported -- changes that were contemplated in early 1997 (less than two years after the Supreme Court order requiring the plan) and finalized in 1998. And although it is a matter of fact that court reporting is inherently expensive, the Circuit continues to look for ways to economize these statutorily required services. 28 VI. Exhibits Exhibit A Administrative Order 2.039 IN THE CIRCUIT COURT OF THE 16TH JUDICIAL CIRCUIT OF THE STATE OF FLORIDA IN AND FOR MONROE COUNTY ADMINISTRATIVE ORDER 2.039 IN RE: COURT REPORTING SERVICES PLAN • • WHEREAS, the Supreme- Court of Florida has found . that an emergency exists in the present court reporting system in Florida, • 650 Sold 38, Fla. Rules of Jud. Admin. (Fla. 1995) ; and, • WHEREAS, in response to the emergency the- court adopted amendments to rule 2 .-0-70 of the ' Florida Rules of Judicial Administration requiring the chief judge to enter an administrative order developing and implementing a circuitwide plan for the court reporting of all' proceedings required to be reported at public expense using either full or part-time court employees or independent contractors; and • • WHEREAS, the circuit court and-county court judges in the circuit were consulted as to. the most efficient and economic means of providing court reporting services; and . • WHEREAS, the court administrator under the direction of the chief judge provided an analysis of the financial, technological, and personnel resources available in the circuit to provide court reporting services; and WHEREAS, the current. . system for providing court reporting services in the 16th Judicial Circuit (Monroe County) blurs the distinction required by the Supreme Court of Florida, as.well as by state and federal laws, between public employees and private service :providers; and ' WHEREAS, an issue aper regarding, the fundingof court reporting services in Mon oe Countywas Monroe presented to the Board of County:.Commissioners at a !regularly scheduled meeting; and WHEREAS, the Board of County Commissioners for Monroe County approved in concept a new system for providing court reporting services including the establishment of four full-time judicial - employees on county payroll; NOW, THEREFORE, it is ORDERED that the ollowing plan is establishecL to•, provide:'court •,reportingi services in the Sixteenth Judicial. Circuit of Florida (Monroe County) : 1. The current four Official Court Repo ters will become . full-time judicial employees on county payroll c eating a pool for the purpose of reporting and transcribing (when o dered) all felony proceedings, evidentiary hearings, juvenile proceedings, and county criminal trials as required. As employees, these reporters ' are not eligible to receive additional compensation from the county for appearances or transcript production within the scope of their employment. • 2 . All official court reporters shall achieve and maintain the designation of Registered . Professional Reporter (RPR) as defined by the National Court Reporter Association. Equivalent designations from other associations will also be acceptable as a minimum standard for official court reporters. Currently employed official court reporters that lack the registered professional reporter or an equivalent designation shall have two (2) years to achieve such a designation. 3 . Depositions in capital cases assigned to court-appointed attorneys will be reported and transcribed (when ordered) by the employee court reporter pool., 4. Civil hearings will be reported by the pool 'as time allows in order to insure coverage in a noncompetitive market and to increase revenue to the county through the billing of hearing fees to the private attorneys. However, nothing in this order I restricts outside competition for civil work by any qualified reporter nor should this order be construed as suggesting or implying any right to the civil workload by the employees in the pool. l.� 5. All court reporters serve at the easure of and as directed by the Chief Judge and the majority ofl the judges in the I . 16th Judicial Circuit. 6 . One of the reporters shall be designated as a coordinate court and de osition a coordinate to work. P ppearances as well as transcript I 7 . When the workload prevents proper coverage of the courts, the Managing Court Reporter is authorized to retain the reporting services of a private provider whose appearance and transcript fees in criminal hearings shall be paid through the Fine and Forfeiture Fund and, in civil cases, shall be paid directly by the attorneys. 8. It is expected that due to workload, epositions in all indigent criminal cases where a private attorney is assigned due to • the Public Defender having a conflict in the case will continue to be taken by private court reporting providers . ' However, conflict attorneys shall inquire as to the availability of an employee reporter prior to retaining private providers for reporting these depositions. 9 . Wherein Administrative Order No. 2 .012I In re; Electronic Recording of Depositions, prohibits the taking of a deposition involving a defendant represented by the Office of the Public .Defender by an Official [Court Reporter] or freelance reporter • without prior approval of the presiding judge, in those cases where i the presiding judge approves the taking of a deposition by ✓ stenographic means, the Office of the Public Defender shall first contact the Managing Court Reporter as to the availability of an employee reporter prior to retaining the services of a freelance reporter. 10 . Administrative Order .No. 2.011, In re: Electronic Court Reporting for Third Degree Felonies, remains in effect. 11. Administrative Order No. 2 .012, Jul re: Electronic Recording of Depositions, remains in effect. 12 . Administrative , Order No. 2 .013, In re: Electronic Recording of Judicial Proceedings, remains in effect. 13 . Administrative Order No. 2.016, In re: Transcripts for .Multi-Defendant Criminal Cases, remains in effect. 14. Administrative Order No. 2.023, In re: Court Reporters/Fee Schedules/Transcript Specifications/Forms, remains in effect. 15. Administrative order No. 11.002, In re: Official Court Reporters Appointment, and all its amendments are hereby rescinded. This order shall take effect July 1, 1995 . DO AND ORDERED Key West, Monroe County, Florida, this the • day of , 1995. 77144111 //111'11114°°/charowler Chie Judge • I ' Exhibit B Amendment 98-1 to Administrative Order 2.039 • IN THE CIRCUIT COURT OF THE 16TH • JUDICIAL CIRCUIT OF THE STATE OF FLORIDA IN AND FOR MONROE COUNTY ADMINISTRATIVE ORDER 2 .039/98-1 AMENDED IN RE: COURT REPORTING SERVICES PLAN • The Supreme Court, in In Re: Florida Rules of Judicial Administration--Court Reporting, 650 So.2d 38 (Fla. 199.5) directed the Chief Judge, after consultation with the circuit court and county court judges in the circuit, to enter an administrative order developing and implementing a circuit wide plan for court reporting of all proceedings required to be reported at public expense using full or part time court employees or independent contractors. On June 30, 1995, the. Sixteenth Judicial Circuit Court Reporting Plan was adopted by Administrative Order 2 .039. In accordance with• the plan, court reporting services shall be provided by court employees. The order was subsequently amended on November 28, 1995 to include a schedule of fees. Whereas in 1995, the demand for court reporting services far exceeded the supply, the circuit sought some means by which to insure coverage for civil hearings in the existing noncompetitive market. Because such coverage was not statutorily required to be provided at public expense, a procedure for billing the provision of these services to the users was developed and it was hoped that these revenues would offset the cost. In order to insure that. the procedures not constitute an unfair labor practice, the plan included a caveat in this regard: "However nothing in this order restricts outside competition for civil work by any qualified reporter nor should this order be construed as suggesting or implying any right to the civil workload by the employees in the pool. " In addition, civil hearings were to be reported by the employee pool "as time allow[ed] . " It became the expectation of users, however, that employee court reporters would always be available to report all, civil hearings. An analysis of the actual use of the employee court reporting pool for civil reporting has taken place over the past year. The I findings indicate that the actual practices place an undue burden upon the circuit' s limited court reporting resources; that the ,., costs far outweigh the collected revenues; and that the supply side of the market has shifted and become more competitive. Further analysis of the plan uncovered a contradiction with the Policy Statement of the Florida State Courts System' s Personnel Regulations Manual, which requires the Chief Judge of the circuit to exercise administrative supervision over. court personnel. One other minor section in the plan was also found to be outdated. In consultation with the circuit court and county court judges of the 16th Judicial. Circuit, IT IS THEREFORE ORDERED: Administrative Order No. 2.039, In re: Court Reporting Services • Plan, is hereby amended: • • Section 4 is replaced as follows: 4. Civil hearings and trials shall be reported by private court reporters as arranged by the parties. However, cases required to be recorded by statute, such as guardian appointments, juvenile dependency cases, and final hearings in dissolution • of marriage actions are the responsibility of the circuit' s court reporter program and will be recorded electronically or by an employee court reporter if electronic services are not available. In addition, hearings of simplified dissolutions, temporary restraining orders, and hearings set as emergencies by a judge, are also the responsibility of the circuit' s court reporting program. Section 5 is replaced as follows: 5. All employee court reporters are at-will employees and serve at the pleasure of the appointing authority -- the Chief Judge of the circuit. Section 10 is replaced as follows: 10. Administrative Order No. 2.011, In re: Electronic Court Reporting for Third Degree Felonies, is hereby rescinded. This order shall take effect November 1, 1998 . DO AND ORDERED at Key� �st, Monroe County, Florida, this the day of ,C�1:LrkC , 1998. A. kiA64d, / Sandra Ta /r Chief Jud• - Exhibit C Agreement Between The State Of Florida Office Of The Attorney General And Florida Keys Reporting, Inc. • AGREEMENT BETWEEN THE STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL • AND FLORIDA KEYS REPORTING, INC. • This AGREEMENT is entered into in the City of Tallahassee, Leon County, Florida by and between the State of Florida, the Office of the Attorney General(the OAG), an agency of the State of Florida with headquarters located in The Capitol,Tallahassee,Florida 32399-1050, and Florida Keys Reporting, Inc.,P.O.Box 655, Tavernier,Florida 33070 (the CONTRACTOR). The OAG, pursuant to §287.059(13),Florida Statutes, is authorized to contract with one or more court reporter services, on a circuit-wide basison behalf of all state agencies. AND,THEREFORE,the parties mutually agree as follows: ARTICLE I.FNGACEMENT_OF THE CONTRACTOR (a) The OAG agrees to engage the CONTRACTOR and the CONTRACTOR agrees to perform the court reporting services as the First(1st) ranked CONTRACTOR in the Sixteenth (16th)Circuit for all ELIGIBLE USERS as outlined in ITB 96/97-1, which is incorporated by reference as Attachment 1, and as further set forth below. (b)The term ELIGIBLE USERS includes state officers, departments,boards, commissions, divisions, bureaus, councils, and units of organization., however designated, of the executive branch of state government, community and junior colleges, and multicounty special districts exclusive of those created by interlocal agreement or which have elected governing boards. (c)ELIGIBLE USERS, on whose behalf the OAG is entering this contract must use rank order when selecting a court reporting firm. It is the intent of the state to place orders in rank order starting with number one. The state reserves the right to place orders with other court reporters if delivery time and availability of services cannot be met by any of the ranked CONTRACTOR(S)at the time of need. (d)The CONTRACTOR agrees to provide court reporting services on both a scheduled and an unscheduled basis. Such services may be subcontracted to previously approved subcontractors, as provided below. Scheduled services are those where notice to the 1 I . UHh PAGE F)3 i CONTRACTOR is provided at least five(5)working days prior to the proceeding. Unscheduled • services are those where less than five(5)working days notice is provided. • (e)If during the contract period,the CONTRACTOR adds employees or associates who were not originally listed with a resume on May 8, 1997(see Attachment 2), such new employees are not eligible to perform work under this contract until their individual resume is submitted by the CONTRACTOR and approved by the OAG. The same procedure will be used for the approval of subcontractors. ARTICLE 2.SCOPE OF SERVICES The CONTRACTOR agrees under the direct supervision of the ELIGIBLE USER to provide services under the conditions set forth in the attached ITB 96/97-1,which.is incorporated by reference. (See Attachment 1.) ARTICLE 3.TIME OF PERFORMANCE (a)This AGREEMENT shall bind the parties upon its execution by their representatives and shall become effective July 1, 1997. The contract period is one year and will end on June 30, 1998. (b)•The CONTRACTOR will perform services, including recording the proceedings at the time, date, and location provided by the ELIGIBLE USER. (c)Delivery of services, including transcripts of those proceedings ordered by the • • ELIGIBLE USER shall be achieved within the conditions set forth in Article 4. • (d)The State may renew this contract for two (2)additional one(1)year periods after the initial contract period contingent upon satisfactory performance evaluations by the OAG and the availability of funds. Consideration at the time of renewal may change consistent with the provisions of the attached 1TE 96/97-1; page 1, Contract Renewal, paragraph C and page 9, . Price Adjustment Clauses. (See Attachment 1.) ARTICLE 4.f.ONSrDERATION (a)As compensation for the satisfactory performance of the reporting services, the CONTRACTOR shall receive payment according to the schedule outlined in Attachment 3, Proposal Sheet, Court Reporting Services and as further set forth below. (b)The first hour of appearance fec will be paid in full regardless of time worked. Each 2 - • •, 01/31/200e 18:82 8504870168 OAG • PAGE 04 • • hour after the first hour will be billed and compensated rounded to the nearest quarter hour. (c)Appearance fees will not be paid for travel time or any breaks (including meals breaks). (d)Computer disk(s)and video tapes•(if applicable)will be provided at no charge with transcript order. (e)No excerpt search charge will be allowed. (t)No per diem or mileage will be paid when the location of the proceeding to be recorded is S0 miles or less from the CONTRACTORS'S official headquarters, as indicated in the CONTRACTOR'S bid. Per.diem and mileage will be paid in accordance with Section 112.061, Florida Statutes, when the CONTRACTOR must travel more than 50 miles within the judicial circuit from the CONTRACTOR'S official headquarteFsr. In no event will the CONTRACTOR receive per diem or mileage for travel to a location outside the circuit where the CONTRACTOR'S official headquarters is located. (g)Cancellation of appearance by a state agency or other eligible user without a minimum of four(4)hours notice prior to beginning time will result in the state agency or other eligible user paying the CONTRACTOR$40.00. (h)In accordance with the provisions of Section 287.0582,Florida Statutes, if the terms of this AGREEMENT extend beyond the.current fiscal year, "The State of Florida's performance and obligations to pay under this contract is contingent upon,an annual appropriation by the Legislature". ARTICLE 5.LIQUIDATED DAMAGE$ In the event the CONTRACTOR fails to provide court reporter services under the terms of this contract, CONTRACTOR will pay liquidated damages to the state of S500 per proceeding (e.g.,hearing, deposition, trial, etc.). CONTRACTOR and OAG recognize the difficulty in ascertaining actual damages and agree that the CONTRACTOR shall pay this amount as liquidated damages and not as a penalty. ARTICLE 6.DOCJJMENTATIOrj (a)CONTRACTOR shall submit written invoices to the contracting ELIGIBLE USER for • all fees or other compensation for services or expenses In detail sufficient for a proper pre-audit and post-audit, including the nature of the services performed or expenses incurred, the identity of • . 3 , • , ( j • person(s)who performed the services or Incurred the expenses, the amount of time expended in performing services, includingthe dayon which the services were performed, and, if expenses were incurred, a detailed itemization of such. Invoices or bills must indicate: 1)Case name(s) and number(s). • 2)Date(s) services rendered. 3)Time at which the proceeding commenced and adjourned, hourly fee, and amount due. 4)Description of services performed and costs incurred. 5)Number of original transcript pages and contract amount per page, number of copy pages and the contract amount per page, and the amount due for each. 6)The contract number assigned by the OAG: 7)The eligible user's name and employing attorney name. 8)All costs associated with each proceeding shall be delivered by the CONTRACTOR to the eligible user on a separate bill invoice. (b) Charges for postage, supported by appropriate invoices, receipts, or affidavit, shall be billed and reimbursed at cost. No transcript shall be sent other than by regular United States mail unless directed by the contracting agency. (c)The first four or five digits of the CONTRACTOR'S invoice number,which must appear on all invoices,will be the contract number. The contract number is 97161. (d)The CONTRACTOR shall submit to the Office of the Attorney General on a quarterly basis, by the 15th day of the month following the end of the quarter, beginning October 15, 1997, a list of all jobs offered, accepted, or refused by CONTRACTOR, as well as the name of the • ELIGIBLE USER offering the work. CONTRACTOR shall indicate if the work offered was scheduled or unscheduled. (e)When an eligible user is a party to a proceeding but not the employing agency, the CONTRACTOR must provide the eligible user services at contract rates. ARTICLE 7.PUBLIC RECORDS (a)Unless specifically exempted by law, all records made or received by CONTRACTOR in conjunction with this AGREEMENT are public records available for inspection by the public in accordance with the provisions of Section 119.07,F.S. Refusal of the CONTRACTOR to allow 4 • '1 ul/dl/4UUU 1U:02 8504870168 OAG PAGE 06 • . • } public access to such records shall constitute grounds for cancellation of this AGREEMENT as provided in Section 287.058, F.S. (b)Since the services being contracted for in this AGREEMENT are intended to assist the ELIGIBLE USERS in ongoing or imminent litigation or adversarial administrative proceedings, certain records made or received by the CONTRACTOR reflecting a mental impression, conclusion, litigation strategy, or legal theory may be exempt from the disclosure requirements of Section 119.07.F.S. In order to assure that records subject to this exemption are not disclosed, the CONTRACTOR agrees,to notify the ELIGIBLE USER immediately upon being requested to disclose any documents or records in CONTRACTOR'S possession which relate to the subject matter of this AGREEMENT. The CONTRACTOR shall not allow any inspection of or • otherwise disclose any information found in said documents or records unless and until directed by the ELIGIBLE USER, ARTICLE 8.TERMINATION_OF AGREEMENT FOR CAUSE (a) In the event this AGREEMENT is terminated for convenience or cause, all finished or unfinished documents, data, studies,correspondence,reports and other products prepared by or for the CONTRACTOR under this AGREEMENT shall be made available to and for the use of the ELIGIBLE USERS,who requested such products. (b)Notwithstanding the above, the CONTRACTOR shall not be relieved of liability to the ELIGIBLE USERS for damages sustained by the ELIGIBLE USERS by virtue of any termination of this AGREEMENT by the CONTRACTOR. In the event this AGREEMENT is terminated, the CONTRACTOR shall be reimbursed for services satisfactorily completed subject to any such damages. (c)If, in the judgement of the OAG,the CONTRACTOR for any reason fails to fulfill in a timely manner all obligations under this Agreement, or if the CONTRACTOR should violate any of the covenants, agreements or stipulations of this AGREEMENT, the OAG shall have the right to terminate this AGREEMENT by giving at least five days written notice by registered mail to the CONTRACTOR of such termination and by specifying the effective date. (d)The CONTRACTOR will be considered in non-compliance if(s)he fails to appear, fails to provide accurate transcripts, or fails to provide transcripts, or fails to provide transcripts in the •i 5 Wit Oki Ain 8504070160 OAG PAGE 07 (0 i agreed upon time frame in the price sheets. Non•compliance may result in any of the following: 1)Reduction in amount owed for appearance fee and transcript for specific • proceeding by an amount up to 100%. 2)No additional work to CONTRACTOR until transcript is provided. 3)Termination of contract. ARTICLE 9.ADMINISTRATION OF AGREEMENT • (a)The provisions of this AGREEMENT shall be administered by the Office of the Attorney General. (b)Any dispute over performance or other terms of this AGREEMENT shall be governed by Florida Law and any action arising over any such dispute may only be maintained in Florida Courts. ARTICLE 10.AMENDMENTS ]Either party may, from time to time,request changes in the scope of services to be performed under this AGREEMENT. Such changes which arc mutually agreed upon by all parties shall be incorporated in written amendments to this AGREEMENT. ARTICLE 11.TRANSCRIPTS Transcripts must be delivered by the CONTRACTOR to the contracting ELIGIBLE USER within the time frames stated in the price sheet(Attachment 3). If an ELIGIBLE USER, for whatever reason,grants an extension of time to deliver the transcript, the extension must be authorized in writing, by the contracting attorney or designated position, and a copy of the authorization must be delivered to the CONTRACTOR ARTICLE 12.AGTtF,EM..NT AS INCLUDINQJNTTRE AGREEMENT This instrument,with Attachment 1, Attachment 2 and Attachment 3, embodies the entire • AGREEMENT of the parties. There are no provisions,terms, conditions,or obligations other than those contained herein. This AGREEMENT supersedes all previous communication, representation or agreements on this same subject verbal or written between the parties. • • L � cuuu iv.uc tl iCl4tl ltJlbtl UFil7 NAl.E kld In witness whereof,Florida Keys R •ortin_, I c. and the Office of the Attorney General have executed this agreement, A... 4 , Flo •a Keys Reporting, Inc. 7ter Antonacci • Deput Attor ey General ( -ai - 0 q ? DATE DATE )11)05 1 FID Number • • , 7 Exhibit D FKR's Invoices and Court Reporter Ackiiowlegment Form I ' 9totida %yb GRE/2otlin9 ,,;; !Box 635 Federal I.D. # 59-2420581 ��•• 7avctntit, 9(otida ggo7O 832.20g N° 12544 • TO• Board of County Commissioners Key West, Florida Attn: Court Executive • April 23, 1996 DATE, April 18, 1996, Circuit Court, Case No. KW-95-1078-CF Depositions of: Ted and Gloria Lukaszak • Re: State v. David Glenn Attendance of Reporter: 4:00 - 5:00 $30.00 INDIGENT Reporter: Jill Middlemiss • • ACKNOWLEDGEMENT OP COURT REPORTER'S APPEARANCE - DEPOSITIONS Case No.(s) K9' o 78-CF Name of Reporter .X.0145 400144e1 Style S- '' - i J (7I-e Vl1 Appearance Dates i I ei /9 g/, 5a4 to i1 S�'t�- Location Nature of Appearance %�I J)t.5 . A.M. Appearance P.M. Appearance Start: Start: • 1).0 • 5- • vU Stop: Stop: Deposed Partylies) Acknowledgement of Deposing Attorneys ItC1 k_ukoseek I hereby acknowledge that this wkRs �� deposition is sary and th wit ess material. • Submit to: State: Court Executive --- Defense: Room 302 Monroe County Courthouse Annex Key West, Florida 33040 (305) 294.9646 I y fui}'y 4ri1��I•:n 7rr:1`T• `{, i/!'.•fir.•^ 7-1:•.•ti�yy��•• ,r;'rl.r,, .. �, .�...� � :n l,;r.... .i. . •1 ,..• f l � ..,�. •l• ,�:... .� ,::. ;: y i 1 • ' S .t,O. .vx 05 I Fedvr;I I.D.#60•1420681, ;" • ' \�V�i� •• • .oilminfsa. g',,N��a 33010 i' ! ' . i • : 9-six 205452-940 . NI .ortzra..: "..: .....:. . . . . . . , . • . . • . . • • • . • _ ,TO:, i• Il1, Ward & NenderSon,, P.A. :" .. . 1 • . P. 0. Box 223.1... Attn: Robert :S. .Gough, ;III,' Eeq. ' , i • . • . ' :: - • • Dare: AuquBt 25, '1999 August 13, 1999, Circuit Court; Case Nov 97.639-CA-11 1 • . Depositions or: Julio 'Goaos, 48 pages, Scott Mollies, 92 pages, • . JimmgyFreecs, 37 pages •: . • .. , Re: Mollie v• . Chrysler Corp. . . • . . 'Attendance of Reporter: 11 ;30 2:00 A 3:00 3s30 $9 90.00 : • ' . Original 4 1, 1.40 pages . . . 560.00. 1cc 37 pages . 74.00 Exhibits: 11 pages, Laser colored photos 45.00 Postage 6.50 • • 4775.50 • Reporters Lisa Rosser i / C\ . . . • Transcripts mailed Priority Mail on 8-23-99. •• . .• • • • _- . \ J\•lrtianR you. . . � �� 00 39Vd 030 SN?1310 9h/.TAMSOw SA:TT A00Z/AT/L0 I. ry a 0 . • " - ' r:t .., I, . .....'1..1,., %.,,,, .. b _ (IR %lido _ixail cixatioltino, ASC. , • ,ID, .a„x 653 • Federal I.D.#59.2420581 • • � �� /, awanntev, V trait u 33070 • .W. ` t () 305-S5s-2,53 • 1`� ✓ �}ax 305-ds.94r0 N2 016993 .. •TO: Department of Health ' Internal Services . / • BIN# CO1 • • 2020 Capital Circle SE Tallahassee, FL 32399-3251 :; Attn: . Peggy Sue Anderson Dare:Jere 29. 1999 Contract 097-161 • L . June 25th and 26th, 1999, Board of Chiropractic Medicine Meeting held in Key West • .. • Attendance of Reporter: 6-25 9:00 - 12:00 $ 65.00 • 6-26' (Saturday) 9:00 - 10:00 55.00 • . $120.00 •. Reporters: Ji iss isa •Roeser . 55106 _. -- . . \AI\ Thank you. . • , (1(13 { t • • • • • .. �'r ' • • • SO 39dd 030 S>1e1310 SOLT68ZS0E S0:TT 000Z/0T/E0 Exhibit E Double Compensation to Full-Time Employees Double Compensation to Full-Time Employees Monroe County Wages Paid during Second Jobs 1200 800 1000 r— m ® Wages 600 paid 0 400 ' 200 r- 0 Jeske McDonough Rosser Wade Lear Court Reporters Payments from Private Firms to County Employees 7000 6000 ' 5000 ' 4000 ■ Payments 3000 2000 1000 ' 0 Jeske McDonough Roeser Wade Lear Court Reporters Hours County Employees Compensated Twice 5o ' - 40 ' 30 o ■TNne = 20 ' 10 0 Jeske McDonough Roeser Wade Lear Court Reporters Reporter Jeske McDonough Roeser Wade Lear County pay $15.50 $64.25 $1,032.68 $75.76 $38.13 Payments $30.00 $172.50 $5,905.95 $110.00 $65.00 Hours 0.75 3.25 42.25 3.25 2 Instances 1 5 35 3 2 Exhibit F Florida Supreme Court Office Of The State Courts Administrator Guidelines and Policy Considerations For The Development of Circuit Plans for Court Reporting Services • • I , ( FLORIDA SUPREME COURT OFFICE OF THE STATE COURTS ADMINISTRATOR e* * ****f- (.3 t ******* • GUIDELINES AND POLICY CONSIDERATIONS ~ FOR THE DEVELOPMENT OF CIRCUIT PLANS FOR COURT REPORTING SERVICES • • State Courts Administrator Kenneth R. Palmer Project Staff • • Mignon U. Beranek Richard E. Cox Brian Lynch. Gregory J. Youchock FEBRUARY 23, 1995 • (�- • • TABLE OF CONTENTS l' • • I. INTRODUCTION AND STATEMENT OF PURPOSE 1 • II. REQUIREMENTS OF CHAPTER 112, FLORIDA STATUTES 1 III. REQUIREMENTS OF THE FAIR LABOR STANDARDS ACT 2 A. Employer/Employee Relationship 2 B. Independent Contractor Relationship 3 . IV. APPROACHES FOR DELIVERING COURT REPORTING SERVICES 4 A. Employee Court Reporters 4 1. Employee Status • 4 2. Salaries and Benefits 5 3. Staffing Configurations 5 a. Court Reporters 5 b. Electronic Recorder Operators (EROs) 6 c. Supplemental Personnel 7 d. Managers 7 e. Temporary Assistance 8 4. Equipment 8 5. Ownership of the Record 10 6. Making Staffing Determinations 10 7. Overtime Under the Employee Approach 11 8. Management Decisions Relating to Costs 11 a. Policies for Felony Proceedings 12 (1) Computer-Aided Transcription(CAT)and Scopists 12 (2) Pooling 12 (3) Coordination 13 (4) Transcript Production Policies 13 b. Policies for Low Transcript Volume Proceedings (Juvenile, County Criminal &Traffic) 14 c. Policies for Depositions 15 (1) Overview 15 (2) Employee Court Reporters 15 (3) Temporary Court Reporters 15 (4) Electronic Reporting 16 B. Court Reporting Services Provided by Independent Contractors 17 1. Preservation of an Independent Contractor Relationship 17 a. Control Over Personnel 17 b. Skill Required of the Contractor's Work Force 18 c. The Contractor's Ability to Hire and Fire 18 d. Investment in Equipment 18 • ��, • • e. Contractor's Opportunity to Use Initiative, Skill, and Judgment 18 f. Non-Exclusivity of the Business Relationship 18 _ } g. Permanency of Relationship 18 h. Premises of the Contracting Authority 19 i. Right of Individual Court Reporters to Refuse Work or Work Elsewhere 19 j. Compensation for Services • 19 k. Contractor's Compliance with Applicable State and Federal Law 19 2. Procurement Strategies 19 a. Request for Proposals(RFP) for Contractual Services 20 (1) Statement of Contract Duration 21 (2) Qualification Criteria 21 (3) Methods for Invoicing and Payment 21 (4) Divisions and Proceedings to be Recorded 21 (5) Descriptive Information 21 (6) Laws and Rules Relevant to the Court Reporting Function 21 (7) Minimum Performance Standards . 22 (8) Award Evaluation Criteria 22 (9) Specific Information That Must Be Included in the 22 b. Invitation to Bid(ITB) for Contractual Services 22 (1) Contract Terms 23 (2) Divisions and Proceedings to be Recorded 23 (3) Performance Standards 23 (4) Pricing Information 24 c. Multiple Award Contracts 24 C. The Hybrid Approach: The Use of Both Employees and Independent Contractors 25 V. TRANSITION TO A NEW DELIVERY SYSTEM 25 A. Considerations 25 1. General Description of Method of Service Delivery 25 2. The Employment Method. 25 B. The Independent Contractor Method 27 VI. SUGGESTED DATA ELEMENTS 27 A. Reporting and Transcript Production 28 _ B. Cost • 28 C. Expedited Requests and Extensions 28 D. Freelance Reporters 29 ! E. Scopists/Typists/Other Support Personnel • 29 F. Overtime 29 APPENDIX . • • GUIDELINES AND POLICY CONSIDERATIONS FOR THE DEVELOPMENT OF CIRCUIT PLANS FOR COURT REPORTING SERVICES INTRODUCTION AND STATEMENT OF PURPOSE Two issues involving state and federal law have fundamentally impacted the delivery of court reporting services in Florida. The first issue arises under Chapter 112, Florida Statutes, Part III, Code of Ethics for Public Officers and Employers, and the other issue involves the application of the Fair Labor Standards Act. The Supreme Court in In Re: Florida Rules of Judicial Administration—Court Reporting,No. 85,055 (Fla. Feb. 23, 1995) has outlined the necessity for the circuit courts to ensure compliance with such state and federal laws by requiring them to reevaluate the historical relationships among official court reporters, their deputies,and the courts. Specifically, the chief judge of each judicial circuit is directed to develop an administrative plan for the provision of court reporting services provided at public expense. The chief judge is also to ensure that the record of court proceedings and testimony is properly taken and preserved. The purpose of these guidelines is to outline employment, funding,policy, and organizational factors and alternatives that should be taken into consideration in the development and execution of such plans. • II. REQUIREMENTS OF CHAPTER 112,FLORIDA STATUTES The Code of Ethics for Public Officers and Employees, Part III of Section 112,Florida Statutes, prohibits public officers and employees from doing business with their own governmental agency, procuring contractual services on behalf of their agency from their private business,and using public property to conduct private business. Traditionally, official court reporters have provided the services of their businesses to meet the reporting needs of the trial courts. Their incomes have been primarily generated through appearance and transcript fees that they and their employees have earned, even though they also receive an annual state salary of$5,400 plus benefits. Some receive a county salary or stipend as well. This approach,which is authorized in Chapter 29,Florida Statutes,has subjected several official court reporters to investigation by the Florida Commission on Ethics. In at least one instance, the commission has determined that an official court reporter's use of his own business to provide court reporting services to the courts violates the Code of Ethics. . If the court reporting plan developed and implemented in each circuit provides that court reporting services will be delivered by either employees or independent contractors, violations of the Code of Conduct under the traditional approach will be eliminated. Independent contractors will clearly be private entities who are not public employees subject to the Code. On the other hand,court employees will be governed by the Code, • f � but they will be providing direct professional services on a full time basis instead of relying on private businesses to assist them in performing the court reporting function. III. REQUIREMENTS OF THE FAIR LABOR STANDARDS ACT The Fair Labor Standards Act(FLSA) requires that additional compensation(either in the form of compensatory time or pay at a rate of time and a half)be paid to employees who have worked in excess of 40 hours in a given work week. The majority of judicial • circuits in Florida have retained the services of official court reporters and deputy court reporters in a manner generally consistent with provisions of Chapter 29,Florida Statutes. However,under such arrangements,the official court reporters and deputy court reporters in most of these circuits may be considered court employees for purposes of application of the FLSA. Thus,both the time official and deputy court reporters spend in court and the time they devote to the preparation of transcripts out of court may be considered hours worked,which may be subject to the overtime provisions of the FLSA. To avoid unexpected liability for overtime, the courts must engage the services of court reporters in one of two ways: by hiring them as independent contractors or as employees whose work hours are accounted for on a routine basis and who are compensated for overtime in accordance with the FLSA. The essential elements of each relationship follow: A. Employer/Employee Relationship An employer/employee relationship exists when one person employs another to do certain work and also exercises control over the performance of the work to the extent of prescribing the time and manner in which the work is to be executed. The following elements are indicative of this relationship: 1. The employer pays the employee's salary and provides benefits, including health and life insurance,matching social security, retirement, liability/risk management coverage, and workers and unemployment compensation. 2. The employee is eligible to earn annual and sick leave,plus paid holidays. 3. The employer hires,supervises and terminates the employee and any. subordinates of that employee. 4. The employer has the right to control and direct the manner in which the employee performs the work. • 5. The employer sets the employee's hours of work. 6. The employee performs services to the employer's satisfaction. • j 2 ���1 7. The employee performs the work on the employer's premises. 8. The employer furnishes equipment,office space and materials to employee. 9. The employer pays the employee's business and/or travel and continuing education expenses. 10. The employer must comply with other state and federal employment laws. B. Independent Contractor Relationship An independent contractor relationship exists when a person is engaged to perform a job, but is answerable only to the results of the work and not the means by which the results are accomplished. There is no single factor for determining whether an independent contractor relationship exists. The following factors are indicative of an independent contractual relationship: • 1. The contracting authority does not pay salary or benefits for the independent contractor. 2. The contracting authority does not provide insurance benefits or . malpractice insurance for the independent contractor. 3. The independent contractor hires,compensates, supervises, and terminates members of his or her work force; such decisions are not subject to oversight or control by the contracting authority. 4. The independent contractor has the right to control and direct the manner in which the work is performed. 5. The independent contractor sets the hours of work for members of the contractor's work force. - 6. The independent contractor performs services to contract specifications; unsatisfactory work performance by members of the contractor's work force subjects them to dismissal by the contractor, or the contractor to penalties or cancellation of the contract. . 7. The independent contractor may perform the work away from the contracting authority's premises. • • 8. The independent contractor furnishes his or her own tools and materials to . complete the job. 9. The independent contractor pays his or her own business and/or travel and continuing education expenses. • 10. The method of payment,whether by time or by the job, is negotiated { contractually. 11. State and federal employment laws are not applicable to the contracting authority. IV. APPROACHES FOR DELIVERING COURT REPORTING SERVICES There are two basic approaches for engaging personnel to deliver court reporting services which should facilitate compliance with the FLSA and the requirements of Chapter 112, Florida Statutes. In addition,there are a range of funding,organizational, technological, and policy issues which must be considered when implementing either approach. The following is an overview of issues that should be considered if court reporters are hired as employees and a summary of factors to be weighed in retaining the services of court reporters as independent contractors. A. Employee Court Reporters 1. Employee Status a. Court reporters would be full-time or part-time county employees with full benefits. It may be possible to permit court reporter employees to retain transcript production rights and revenues. However, the court reporting plan should ensure that time spent out of court in transcript production or other functions related to proceedings reported at public expense is included in the calculations of total hours worked.' b. As county employees,court reporters would work a forty-hour week and receive compensation for overtime as "included". employees, at a rate of one and a half hour's pay or compensatory time for every hour of overtime worked. Managing court reporters may be"excluded" employees and, thus,would be eligible for only 'According to the Department of Labor,overtime compensation may be calculated by multiplying 1.5 by a combination of the hourly wage end the hourly rate from transcript earnings. . _ • • } one hour of compensatory time for every hour of overtime worked, ' ... if local policy permits. 2. Salaries and Benefits Salaries would be set according to county salary schedules. In circuits where court reporters are currently employed, the value of benefit , • packages that court reporters and other employees receive is usually equal to approximately one-third of the salary. • 3. Staffing Configurations . The administrative plan for employee-based court reporting systems should account for a variety of positions. Along with court reporters, courts need to consider the necessity for electronic recorder or operator positions, support personnel,managers and coordinators,and temporary assistance. ' • a. Court Reporters ` For the purposes of these guidelines, court reporters include those who take the record of proceedings using stenotype machines, 1 I stenomasks, or shorthand. The National Court Reporters • Association estimates that 90 percent of court reporters in the U.S. now use special stenotype machines that allow Computer-Aided • Transcription(CAT),and may be referred to as CAT reporters. In Florida,most reporters who are court employees are CAT reporters. They usually work in felony divisions,or in other divisions where there is a high demand for transcripts. Salaries for court reporter employees currently range from$30,158 to$51,694. • Table 1 includes salary ranges in four circuits where court reporter earnings are based solely on salaries. • • Table 1 1994 Salary Ranges for Court Reporters Circuit Salary Range First $ 30,158 -$ 44,296 Second $ 37,791 - $41,892 Twelfth $ 32,274 -$41,114 Fifteenth $40,221 -$ 51,694 b. Electronic Recorder Operators(EROs) - . Electronic recorder operators(EROs) may be retained to take the . record in selected proceedings. Their most common use is to record county criminal,criminal traffic,and juvenile proceedings, which generate a low volume of transcripts. Several courts employ • EROs to record depositions as well. They have been used to record felony proceedings in one judicial circuit. _- Electronic recorder operators monitor court proceedings with an ,1 audio or video tape recorder,keep a log of all event times, and produce transcripts, sometimes with the assistance of a typist. EROs are usually full-time,county employees who receive a salary and benefits package; however, they are not trained as stenographic court reporters. Table 2 presents salaries for EROs currently . employed in some of Florida's circuits. 6 I I • Table 2 1994 Salary Ranges for Electronic Recorder Operators (EROs) Circuit Salary Range Ninth $ 16,973 - $26,874 Twelfth(Manatee) $ 19,552 -$ 22,276 Fifteenth. full time: $ 19,433 part time: $ 8.99 per hour, no benefits- $14,575 per year,plus fringe benefits c. Supplemental Personnel Scopists or text editors may be employed in some courts to work with CAT reporters. Scopists,who are versed in court reporting theory, are individuals trained in the reporter's style of shorthand. — The scopist's job is to perform an initial edit of the transcript. Final review and certification of the transcript is performed by the court reporter. The use of scopists reduces transcript production time. In circuits where court reporters are currently employed, salaries for scopists range from$18,340 to$22,590 plus benefits. d. Managers The court reporting plan may include a manager who is responsible for the supervision of the court reporting unit. The manager ensures that all proceedings which must be reported are covered and that transcripts are produced on time. This individual may or may not report proceedings, depending on the structure of the unit. In circuits that currently employ court reporters, managers who are court reporters are the highest paid court reporters in their division, usually earning$2,000-$4,000 more than their colleagues. Coordinators and managers who are not qualified court reporters typically earn much less than court reporters; their salaries range from$21,330 to$27,831 plus benefits. Court reporting managers are usually supervised by the court administrator or a deputy court administrator.., • + i ' • e. Temporary Assistance • ^. Court reporting divisions may need to engage court reporters and typists on a temporary basis. Court reporters hired temporarily (often referred to as "freelance" court reporters) typically receive a per diem or appearance fee and page rates for transcripts produced. Typists are frequently used to transcribe proceedings,particularly those that have been electronically recorded. Compensation for temporary court reporters and typists may be set by local administrative order. Much like the lists used for court-appointed and conflict attorneys,,rotation lists.may be ysed to calk in temporary.cqurt_reporters and typists. Courts should be aware of the indicators of an employment relationship set forth in Section III A of these guidelines when retaining temporary court reporter or typist services. FLSA requirements apply to any temporary employee whose workload meets or exceeds forty hours in one week,and to those who are regularly engaged by the court. Out-of-court transcript time is counted towards the number of hours worked. The same law applies to members of an independent contractor's work force; the independent contractor must pay overtime to its employees when they work more than forty hours per week. — l 4. Equipment ll Equipment necessary to the court reporting function would be purchased and owned by the court. Courts converting court reporters to full-time _ employees should either purchase new equipment or reimburse the court reporter for privately owned equipment. Maintenance, training, and software upgrade costs are borne by the county. All costs for office space, equipment,supplies,telephones, are also paid by the county. • Efficiency is maximized when court reporters who are full-time employees use CAT to report proceedings to reduce transcript production time. A workstation for a CAT reporter costs between$10,000-$12,000 per reporter,based on a sample of major CAT vendors conducted in December, 1994. These estimates generally include a stenograph writer or machine,a computer and printer,a software license for a single user, installation and set up,dictionary conversion and hot line support. It should be noted,however,that hardware costs for CAT equipment may either increase or decrease depending on the needs of the court and the 8 --,J: Ire I k l l number of units purchased. When multiple work stations are needed, the �_. negotiated price may decrease. Needs for scopists, file servers and maintenance will also affect cost estimates. Methods other than CAT reporting used by the circuit will determine the additional equipment needed. Most commonly, this includes analog audio tape recorders used for electronic court reporting. Other equipment may be needed for video court reporting or for the storage of audio files or digital audio tapes. There is a wide array of equipment available for the electronic reporting of court proceedings and depositions. No one type of equipment is appropriate for every setting. What may be appropriate for a more controlled setting such as a deposition may not work in a more chaotic environment. Electronic recording equipment can vary in terms of: • the method of recording(i.e.,audio versus video); • the configuration of equipment(e.g.,centralized control rooms versus individual courtroom installations); • the level of sophistication of the recording device(e.g., the •number of tracks,noise control and sound isolation capabilities); • the types of storage devices (e.g.,VHS tapes, analog audio cassettes,digital audio tapes, computer files); • the input devices (i.e.,microphones and conference microphones); and 1 • the level of integration with personal computers. The costs associated with the different types of electronic recording devices are at least as variable as the capabilities of the equipment. Courts using electronic methods of reporting must critically examine the types of equipment available and their proposed use of that equipment. Before purchasing a system,the court should be satisfied with the quality and reliability of the manufacturer and vendor,and consider the requirements of installation and maintenance. In addition,the court should integrate its proposed plan for staffing the electronic reporting division with the plan for equipment acquisition. • 9 • • 5. Ownership of the Record • When court employees provide court reporting services, the county owns the record. Non-indigent parties pay the county for transcripts. Transcript fees for non-indigent parties may be set by local administrative order. 6. Making Staffing Determinations • Perhaps the most critical decision in planning to convert to the employment approach is the determination of the number of court reporter positions required to adequately cover all court proceedings and at the same time ensure that accurate transcripts are produced without unnecessary delay. A review of the literature suggests little in the way of staffing or workload standards to guide this decision. Two critical workload components are in-court coverage of proceedings and completion of those tasks associated with the preparation of verbatim transcripts. These out-of-court tasks include: research, translation, editing,printing,proofreading,correcting,maintaining and storing • dictionaries,producing indices and concordances, duplicating, collating and binding,certification and delivery or filing. There are few benchmarks available for making staffing decisions.. Productivity benchmarks, such as the number of transcript pages a court reporter can produce in an hour,are rare. A 1986 study estimated that a CAT reporter can produce 15 pages of transcript per hour without the use of a scopist.2 Other estimates vary widely, but the number of pages that a - reporter is able to produce in an hour should increase over time as technology and court reporter skills and techniques improve. Courts that can estimate in-court time and know the approximate number of transcript pages produced for various procedures may be able to use such data to estimate the number of reporters that will,be needed. Other variables that should be considered are downtime, administrative time, as well as sick and annual leave. Courts that have no basis for estimating either in-court time or transcript volume may choose to rely on the experience of other circuits as the basis for staffing projections. Table 3 is a ratio analysis of judge to reporter full-time equivalent positions (FTEs) in six circuit criminal divisions throughout the state that • • • 1A Study of the Impact of Changing the Employment Status of Federal Court Reporters(Washington,D.C.: Price Waterhouse), November 20,1986,p.IX.19. Based on data gathered for Computer-Aided Transcrlplion In the Courts(Williamsburg,Virginia: National Center • for State Courts),1981,p.34. 10 1' • I-� r- use the county employee model. Based on interviews and data collected during site visits to these circuits, it appears that a maximum ratio of one and a half reporters per one judge is found in circuit criminal divisions. The staffing of other divisions may be more difficult to compare, due to organizational differences and the variety of methods used to take the record. Table 3 Staffing Ratios for Circuit Criminal Divisions Circuit Number of Reporters Per Judge First(Escambia County Only) 1.09 Second 1.38 Fourth(Duval County Only) 1.33 Ninth(Orange County Only) 1.44 Twelfth 1.15 Fifteenth 1.50 L.. 7. Overtime Under the Employee Approach Closely related to making staffing determinations is the management of overtime. The key to avoiding excessive overtime is to staff the divisions _ at a level that allows individual reporters sufficient time to do all of their work,whether in or out of court,and for managers to closely monitor reporter workloads. The use of overtime is necessary for limited periods of high demand,but if overtime costs remain high over an extended period of time,additional positions should be considered. Circuits that currently use employee court reporters report minimal overtime. 8. Management Decisions Relating to Costs The manner in which the court provides for court reporting services will determine the cost of that service. For courts using employees,policies for reporting felony proceedings, low volume or transcript demand proceedings,and depositions need to be carefully developed. r L . 11 • a. Policies for Felony Proceedings { (1) Computer-Aided Transcription(CAT) and Scopists Most court reporters who are county employees use CAT to record and transcribe proceedings. CAT, along with Computer Integrated Courtrooms, are the state of the art method of court reporting' The computer capability of CAT,coupled with the use of scopists or text editors, greatly reduces transcript production time. This technology is the most cost efficient and,based on the experience of several Florida circuits, is critical to the success of the employee approach. • (2) Pooling • The pooling of court reporters involves balancing the • number of in-court hours, in terms of both the number of ' proceedings covered and the transcript demand. It may • require the shuffling of court reporters to accommodate long duration trials. The pooling concept,as opposed to assigning court reporters to a judge, allows for the most efficient use of a court reporter's time in court and while transcribing. Judge- - ,;specific allocation.of court reporters hinders maximum . . • efficiency and often increases either: • the number of full time equivalents (FTEs) necessary; or • the cost associated with hiring temporary reporters to cover required proceedings. Reporter assignment, work hours (including overtime hours),workload,and productivity must be monitored closely under the pooling system. • In a Computer Integrated Courtroom,judges,attorneys,and some parties(particularly those who require accommodations under the Americans With Disabilities Act)all have computers that allow them to read an unofficial version of the transcript on their own computer screens as it is being prepared by the court reporter. The technology also allows parties to read forward and backward through the record on their own computer screens. Computer Integrated Courtrooms require a higher level of skill on the part of court reporters,because there is obviously no lime for editing before the record is read. • 12 1 • • • • The pooling of reporters is also very useful in multi-county i'' •.- circuits. Small counties in multi-county circuits may pay a larger county for court reporter coverage. The amount paid would be a percentage of the total court reporting budget, perhaps based on the percentage of criminal filings in the smaller county, as compared to the entire circuit. This formula is very helpful to a small county that may have a high profile case or other lengthy trial which would be difficult to budget for or manage. An additional advantage .is availability. By having access to multiple reporters, counties are not dependent upon a single individual for coverage. (3) Coordination Thejmportance_of properly managing_reporter assignments and transcription_production cannot be overstated. In-court h uo rs cari vary considerably due to length of trials, absenteeism and vacations. A capital murder case or an extended illness, for example, can have an enormous impact on court reporting costs. The monitoring of transcript production time is also crucial to the successful management of court reporter employees. The proper •management of scopist time and workload should permit • reporters to spend more time in court. Court reporting managers and coordinators must constantly strive to achieve a workload balance(i.e., in-court hours versus transcript production hours) among court reporters. This effort requires constant communication between managers and court reporters. Particularly important is knowing which cases will likely require transcription and which will not,and balancing workload accordingly. (4) Transcript Production Policies • • Producing accurate,timely transcripts and minimizing requests for extensions should be the primary goals of court reporting departments. An additional goal is the avoidance of unnecessary requests for transcripts. Indeed, several circuits have local administrative orders which govern this process. To prevent or discourage unnecessary transcript • • �— 13 production,judicial approval of requests for transcripts is often required. }, Reporters must be given sufficient out-of-court time to produce transcripts. It is therefore incumbent upon the manager to have a firm grasp of court needs and the types of cases being reported. It is also important for the court administrator along with the managing reporter to have a contingency plan for high demand periods. This would include the development of a list of available temporary repodcrs scQpists and typists`During high demand periods,court may consider prioritizing the production of transcripts, allowing those deemed less important to wait until time permits. Supervision coupled with a cooperative atmosphere among reporters fosters a collective spirit of • fairness and collegiality which lends itself to the timely production of transcripts. b. Policies for Low Transcript Volume Proceedings (Juvenile, County Criminal&Traffic) Policies governing transcript production for low volume proceedings vary across judicial circuits. Many coverage options exist, each with differing degrees of cost and benefits. The court must determine which type of coverage is appropriate to the level of demand(i.e., types of proceedings, court environment, and the number of requests for transcripts). The type of coverage used is also affected by judicial preference, local legal culture,personnel and technology costs, and administrative requirements. Several reporting options exist: (1)court reporters; (2) electronic recorder operators (EROs); (3)unstaffed electronic recorders(multi-track, _ cassette tape recorders) operated with an event log kept by a bailiff or deputy clerk of court;and(4)temporary court reporters who are paid an appearance fee and per page rate. Each scenario identified above is used in one or more of the judicial circuits in Florida. No one scenario is necessarily correct. The cost can vary considerably depending on the option used in • relation to types,of staff,salary ranges, and types of equipment. Each option must satisfy demand without sacrificing the quality of Li the record. • 14 • • c. Policies for Depositions (1) Overview • Deposition coverage continues to be costly in many circuits, and in some circuits accounts for the majority of the court reporting budget. Decisions about the method of reporting and the policies regarding transcription determine cost. As with low transcript volume proceedings,alternative J approaches exist. They include: (1) court reporters; (2) electronic recorder operators(EROs); (3)unstaffed electronic recorders(multi-track, cassette tape recorders); and(4)temporary court reporters who are paid an appearance fee and per page rate. Policies governing transcription vary. In some circuits the decision to transcribe depositions is within the discretion of the state attorney or public defender. In other circuits, the judges conduct a more rigorous review of the necessity for transcripts and consequently have reduced costs to some ;( extent. The levels of requests for transcripts vary from situations where most or all depositions are being transcribed to the more conservative approach where only those deemed critical to case preparation are produced. (2) Employee Court Reporters • Employee court reporters may be used to cover depositions if the demand for certified transcripts is extremely high. When nearly all depositions are transcribed, a proceeding reported by a CAT reporter can sometimes be transcribed ' more quickly than one recorded electronically. (3) Temporary Court Reporters In many circuits,depositions have been covered using temporary court reporters retained from a rotating list of freelance reporters or through a contract with a local court reporting firm. These reporters usually receive a morning and afternoon per diem or hourly appearance fees and page •. rates set by local administrative order. 15 i_J f— • l_. (4) Electronic Reporting—Staffed and Unstaffed Electronic reporting, both staffed and unstaffed, is used in many circuits to record depositions. When EROs are used, the court administrator's office coordinates deposition coverage with the state attomey's or public defender's office. The county owns the record; thus,transcript costs are somewhat reduced. The cost for using staffed electronic reporters is usually less than using freelance reporters but more,understandably, than unmanned recorders. Deposition rooms are increasingly equipped with dual cassette tape recorders with multiple tracks to record depositions. The tapes are provided by the county and the attorneys run the machines. In a typical deposition the witnesses and attorneys are identified and only one person speaks at a time. The multi-track recorder is equipped to distinguish between several people speaking simultaneously,thus enabling transcriptionists to identify speakers clearly when producing the record. Upon conclusion,both attorneys have their own tape of the proceeding. If either party wants the tape transcribed, they hire from a list of temporary typists or use office personnel. The requesting party provides a copy of the transcript to the other side. Costs for this type of system are usually less than the freelance or staffed electronic option. Most of the cost for this system is for the purchase of the recorders,which as indicated earlier may vary greatly. Page rates for typists are about half those of freelance court reporters without the obligatory appearance or per diem fee. Most managers report that the quality of the record is not compromised(i.e.,an excessively high number of words that cannot be understood or translated). • 16 • B. Court Reporting Services Provided by Independent Contractors 1. Preservation of an Independent Contractor Relationship In order to ensure that individuals who provide court reporting services pursuant to contract remain independent contractors, the independence of the ce ccr' k force must be preserven of ancontra employment torand relathtiontraonship to between swor court reporter contractorsd. I anddicia the court must be avoided to the greatest extent possible. To preserve the contractor's economic independence, the following issues should be addressed in the selection process and included in the contract document. a. Control Over Personnel When court reporting services are provided by an independent contractor, individual court reporters perform under the control and supervision of the contractor. Members of the judiciary have no authority for the assignment, supervision, or control of individual court reporters.The contract should specifically recite that the court officers and court staff do not have the right to control procedures for accomplishing the contracted services. (1) The contract should set forth specific criteria for the selection of individual court reporters in the contractor's work force. Judges cannot specify which court reporters the contractor will employ. (2) Court reporting services should be performed according to contract specification. Unsatisfactory work performance by an individual court reporter would subject that reporter to dismissal or discipline by the contractor,not the court. (3) The contract should provide that the contractor will establish the conditions under which individual court reporters will report; when, where, and the manner in which court reporters will report; and the job assignments of individual court reporters. Judges cannot request or require that specific court reporters be assigned to their courtrooms. • Similarly,the number of hours per day and the number of days per week that individual court reporters will work is the responsibility of the contractor. Neither judges nor court personnel can have responsibility or authority for these functions. - i �-� 17 b. Skill Required of the Contractor's Work Force The contract should specify the skills, training, and experience required of the members of the contractor's work force who will be providing court reporting services. A standard stenographic course of study,such as the Registered Professional Reporter program of the National Court_Reporters Association, may be required. • c. The Contractor's Ability to Hire and Fire The contract should specify that all hiring and firing decisions are strictly within the discretion of the contractor. Any relief from substandard performance by a member of the contractor's work force would have to be dealt with under the terms of the contract or raised within the context of an action for breach of the contract. d. Investment in Equipment The contract should establish that equipment, supplies, and all other costs of doing business are furnished by the contractor. The court should not pay for equipment, supplies, or other court reporter expenses. e. Contractor's Opportunity to Use Initiative, Skill, and Judgment The contract should provide maximum opportunity for the contractor to use initiative, skill,and judgment in the business enterprise. f. Non-Exclusivity of the Business Relationship The contractor should be free to provide court reporting services to other private and public.entities. Nothing in the contract should suggest that the contractual relationship with the court is exclusive. g. Permanency of Relationship Contracts with independent contractors for court reporting services should be of relatively short duration, for example, one to two years. Contracts should not be subject to automatic renewal. 18 h. Premises of the Contracting Authority The contract should specify that office work and transcription services may not be performed on court property. Only the •reporting of depositions at public expense and proceedings that must be conducted in either courtrooms or a judges'chambers should be held on court premises. Under no circumstances should the contractor or members of the contractor's work force be provided office space at the courthouse. i. Right of Individual Court Reporters to Refuse Work or Work Elsewhere • The court should have no control over whether a particular court reporter refuses a job assignment. Any action taken against such a reporter would be taken by the contractor. The court should have no control over, or interest in,whether a court reporter or the contractor works elsewhere. j. •Compensation for Services The contract should specify the means of payment for services ( rendered under the contract. Payment should be by periodic lump sum or by services performed(such as by appearance or transcript produced),rather than an hourly rate for the time that individual reporters spend on the job. k. Contractor's Compliance with Applicable State and Federal Law The contract should require that the contractor comply with state and federal tax and employment laws, including the Fair Labor Standards Act, the Americans with Disabilities Act, and the Federal Civil Rights Act. The contract should also specify that the contractor is solely responsible for income tax,FICA, and any other withholdings from its employees'or subcontractors'wages. 2. Procurement Strategies • If the court reporting plan provides that independent contractors will be used to deliver court reporting services, the court must use a competitive process to select the contractor. The court should rely on established county purchasing procedures and select the competitive process that most appropriately meets local needs. When either a Request for Proposal 19 . 1 - 1 • • (RFP)or an Invitation to Bid(ITB) is released, the court must be able to provide prospective contractors with sufficient statistical and demographic information to permit a responsive offer. If the court's reporting needs and expectations are well defined, it will be,more cost effective and productive to use an ITB process. If its needs and expectations are not adequately defined, the RFP process will be the preferred selection method. The following section briefly describes additional factors to consider in deciding whether to use an RFP or an ITB process and whether to issue a multiple award contract. a. Request for Proposals(RFP) for Contractual Services This process is generally used when the court is seeking solutions from potential contractors (proposers). The methodology offered by proposers is more important to accomplishing the ends than price or detailed specifics. Frequently the particular expertise of a proposer is considered in the award process. The RFP method requires more resources to develop and release. A minimum period of 60 days from design to award should be planned. In addition,although the RFP is less structured than an ITB, the evaluation and award processes are time consuming. The court choosing this process is more reliant on the proposer and maintains less control than through other competitive selection • processes. Use of the RFP generally assumes that the court is unfamiliar with methods of achieving desired results and relies on the proposer's skills and inventiveness to deliver a satisfactory service. RFPs are more susceptible to protest since they may be more subjective in the evaluation and selection of a contractor than under the ITB method. An RFP should, at a minimum, include a statement of work to be performed,time frames for the work to be completed, and specific criteria to be used in evaluating the proposal.The basis for an award must be established in the RFP document. A review committee is assigned the task of evaluating the general quality and responsiveness, organization and personnel, and price schedules of the contractor's proposal.The RFP should require the proposer provide information relative to their understanding of the problem, experience of key personnel,work to be done, and approach to be used to achieve the objectives,and pricing. In the RFP process, a contract is negotiated separately using the RFP and response as a integral part of the contract but not as the exclusive agreement. 20 �) . Most importantly, the RFP does not specify the methodology to be ��_.. used in providing court reporting services. An RFP seeks proposed solutions for meeting the court's needs, which are then evaluated to identify the proposer who offers the most effective and cost- efficient means of delivering the service. An RFP for court reporting services should specifically include: (1) Statement.of Contract Duration The RFP should detail the length of time that the contractor will be expected to provide the contractual services. (2) Qualification Criteria The RFP should state the minimum standards to be used in qualifying the proposer as a responsible contractor. (3) Methods for Invoicing and Payment The RFP should identify the county's requirements in order to allow for the performance of pre and post audit review of invoices, as well as payment method and schedule. (4) Divisions and Proceedings to be Reported The RFP should include a general description of the court functions that will require reporting and identify the geographic location of the courtrooms where the reporting is to occur. (5) Descriptive Information The RFP should address statistical and demographic information pertinent to the service requested. It should also provide information on the number of courtrooms requiring reporters,the average annual numbers of recorded and transcribed cases,and the average length of trials. (6) Laws and Rules Relevant to the Court Reporting Function The RFP should specify statutes and court rules that govern the discharge of a court reporter's responsibilities. 21 . (7) Minimum Performance Standards The RFP should present minimum performance standards that the contractor will be expected to maintain. The standards should include performance expectations for members of the contractors'workforce, as well as any minimum qualifications and training that will be required of every court reporter who will be assigned to the courts. (8) Award Evaluation Criteria The RFP should describe the specific award criteria that will be used to judge the proposals submitted. (9) Specific Information That Must Be Included in the • Proposals The RFP should specify any information that the court. needs or wants from the proposers. For example, the court may want to require that the proposer furnish specific information concerning its corporate structure and a list of references. The court should also consider asking the _' proposer to include a plan for handling complaints about the performance or conduct of individual reporters assigned to the courts. Proposers should be expected to describe the methodology that they will use to provide the court reporting services, including the type of equipment to be employed; the number of personnel to be assigned and a detailed description of their skills and qualifications; and the means ' by which the proposer will coordinate and manage the delivery of services. Finally, the proposer should give a • detailed fee schedule of the services described in the proposal. , b. Invitation to Bid(ITB) for Contractual Services • The ITB is commonly used when the court can be specific as to its needs. The court should be familiar with the marketplace and availability of court reporting services in the area. Provided that the detailed specifications in the ITB have been met,an offer from a potential contractor(bidder) is accepted or rejected based upon • 22 , price. There is less latitude permitted in the ITB process than the RFP described above. The ITB is a unilateral offer which becomes the contract document. When used to purchase court reporter services,the court must be specific as to its court reporting needs and expected results. The ITB process is usually less time consuming than an RFP. The evaluation and award are based upon definitive standards outlined in the bid document. Awards are made to the lowest responsive and responsible bidder. The bid document and successful bidder's response become the contract. An ITB for court reporting services contains some of the same information that is provided in an RFP. For example, ITB's should include a statement of contract duration, methods for invoicing and payment, descriptive information,and the laws and rules relevant to the court reporting function. In addition, ITB's should contain certain detailed, specific information, including the following: (1) Contract Terms An ITB should list all terms and conditions that will be included in the contract document to be executed upon award to the lowest responsive and responsible bidder. _ (2) Divisions and Proceedings to be Recorded The ITB should identify the divisions to be covered and the types of proceedings to be recorded. In addition, the ITB should specify the methodology to be used in providing court reporting services. For example, the court may require that CAT technology be used to report proceedings • in all circuit criminal divisions, and that electronic .recording devices be used in certain low transcript volume proceedings. (3) Performance Standards The ITB should specify the minimum performance standards that the successful bidder will be expected to maintain throughout the contract period. The standards • should include all performance criteria that the court considers essential to the satisfactory delivery of court -( 23 reporting services.The ITB should list all training and qualification specifications required of the contractor's / workforce and the level of productivity at which each individual worker is expected to perform. • - (4) Pricing Information The ITB should specify the pricing information that each responsive and responsible bid must contain. c. Multiple Award Contracts The court may consider issuing multiple award contracts—an award of separate contracts to two or more bidders for the court reporting services. This may be desirable in situations where the award of a single contract would be impractical or not meet the court's total requirements. For example, the individual bidders may not have sufficient personnel resources to provide the level of court reporting service that the court's workload requires. Multiple award contracts may be preferred depending on market conditions and the contracting authority's needs. Multiple award agreements are an accepted method of public contracting. The ITB is used in the multiple award process. Court reporting firms would be invited to reply to an ITB. All responses meeting the criteria established in the ITB would be considered successful: Use of multiple award contracts usually provide for pre-qualifying of bidders. Generally accepted standards relating to the service needed should be used. In the case of court reporters, it could include,at a minimum,nationally recognized levels of certification,a documented ability to perform under the terms of the agreement,and acceptance by the bidder of the contract agreement that will be used by the parties. The court would then be free to select from among several court reporting firms • responding to the ITB and meeting the qualifications. Since prices may differ from bidder to bidder,the court may realize a cost savings by selecting the lowest price competitor. When rival firms r- know up front that there will be open selection by the court, there is often incentive to provide a higher level of services at:. competitive prices. 24 • C. The Hybrid Approach: The Use of Both Employees and Independent Contractors It is conceivable that circuits may elect to use county employees in one division or county and independent contractors in another. For example,a county may wish to employ CAT reporters in circuit criminal and bid out juvenile,county court, ' criminal traffic or depositions. Another scenario may be in a multi-county circuit where one county may wish to employ court reporters and the others may want to use independent contractors. .Each option is permissible as long as compliance with state and federal law is assured. V. TRANSITION TO A NEW DELIVERY SYSTEM A. Considerations As indicated in the introduction to these guidelines, the opinion of In Re: Florida Rules of Judicial Administration—Court Reporting requires each judicial circuit to develop an administrative plan to deliver court reporting services. Each court should allow several months for a transition period from their existing system to either the county employee or independent contractor approach,or a hybrid thereof. The following is a summary of key components of the administrative plans along with a suggested timetable. 1. General Description of Method of Service Delivery Administrative plans should identify whether court reporting services will be delivered by employees, independent contractors, or a combination thereof. If a combination is used, the plan should specify the method of service delivery by county and/or division. Administrative plans should address the general needs,workload and staffing requirements under an employment approach, or the coverage requirements under an independent contractor approach. The plan should be developed in consideration of costs in other circuits. Costs associated with six employee-based court reporting systems are included in the Appendix. • 2. The Employment Method If court employees are used, the following elements should be addressed in the administrative plan: . • ( 25 LI • I__ • • Staffing Plan • • number of positions,by type • salary ranges • job descriptions • qualifications of positions • testing(if any) • method of advertisement and recruitment • screening of applicants • new employee orientation • Management and Operating Procedures • reporting/organizational structure • roles of deputy court administrators/managers • assignment and scheduling •• supervision/discipline • special provisions/uses of staff • • back-up policies • use of temporary help Facilities and Equipment • location of court reporters • • acquisition of CAT/stenographic equipment • acquisition of electronic recording equipment • equipment quality and specifications standards • peripheral equipment(facsimile and photocopier machines and other office equipment) Budget • identification of public expense court reporting cost centers • (includes state attorney,public defender, and county budgets) • use of state pass-through funds4 • one-time/start-up expenses • recurring salaries and expenses : • calculation of present versus future costs • other cost considerations • 'Contingent upon changes in Chanter 29,Florida Statutes,and the General Appropriations Act,state court reporter finds will be passed directly to the circuits. These funds will be allocated based upon an equitable distribution. 26 _7.. Timetable �_.. • divisional phase-in • allowance for recruitment • county budget approval • Transition From Existing Systems - • acquisition of existing court reporter notes/diskettes • ownership of the record B. The Independent Contractor Method If independent contractors are used, the following should be addressed in the administrative plan: • Means of Solicitation • • selection of Request For Proposal, Invitation to Bid, or Multiple Vendors Contract Requirements • review of specifications/requirements • criteria for selection • term of contract(number of years) ' Contract Management • role of trial court administrator/deputy court administrator • provisions for audit and breach of contract Estimated Budget • selection of fixed, capped,or open ended costs . Timetable • allowance for procurement negotiations • • county budget approval Transition From Existing System •' selection of workshop team . • policy regarding existing reporter notes VI. SUGGESTED DATA ELEMENTS Monitoring court reporter time and workload, both in and out of court,will greatly assist the management of court reporting services. Along with knowing judicial calendars and divisional coverage needs, it is helpful to collect reporter-specific information. The / • 27 ii • • following is a set of data elements that should be maintained and collected to assist the court in providing adequate coverage and in controlling costs. >> A. Reporting and Transcript Production • Number of hours spent reporting proceedings in court, by division or type of proceeding or both. • Number of hours spent producing transcripts, by case type, division or type of proceeding or both. • Number of hours spent recording depositions (if applicable). • Number of transcripts actually requested by agency(e.g., state attorney, public defender or county government). • Number of hours spent producing deposition transcripts • Number of transcript pages produced for the state attorney and public defender's office.. • Number of transcript pages produced for trials. • Number of transcript pages produced for appeals. • B. Cost • Total amount billed for transcripts by fiscal year for public defender's office. • Total amount billed for transcripts by fiscal year for state attomey's office. • Total amount billed for duplicate copies of transcripts for all entities. C. Expedited Requests and Extensions • • Number requests for expedited or daily copy. • Time from request for transcript to completion. • Number of extensions requested by court reporter. • Average number of days for extensions. 28 • • Number of complaints about the timeliness of delivery. • • Number of complaints about the quality of the transcript. D. Freelance Reporters • Number of freelance reporters used. • Number of hours (actual) spent reporting depositions or in-court proceedings. • • Number of transcript pages produced for in-court proceedings. • Number of transcript pages produced for appeal. • Amount paid for appearance and/or per diem fees. • Amount paid for transcript pages. • Number of requests for extension. E. Scopists/Typists/Other Support Personnel • Number of pages scoped,by scopist. • Number of reporters serviced. • • Number of transcript pages typed. • Number of hours of on-call reporter time used because of caseload demands. F. Overtime • Number of overtime hours worked. • Compensation for overtime hours worked,by position. '--` 29 VII. Auditee Responses MARK H. JONES CHIEF JUDGE SIXTEENTH JUDICIAL CIRCUIT OF FLORIDA MONROE COUNTY COURTHOUSE ANNEX i KEY WEST, FLORIDA 33040 SANDRA S. BAZO LINDA M. YAKEL TEL: 305/292-3422 JUDICIAL ASSISTANTS FAX: 305/295-3625 MEMORANDUM To: Danny L. Kolhage, Clerk of the Circuit Court From: Mark H. Jones, Chief Judge' Date: June 5, 2000 • Re: Response to Final Audit Report of Certain Court Reporting Revenues & Expenditures This memorandum contains the responses of the 16th Judicial Circuit, subsequent to our meeting on June 2, to the findings contained in the Final Audit Report of Certain Court Reporting Revenues & Expenditures, the preliminary report of which you provided to me on or about March 20, 2000. These responses are the product of a substantial amount of research and investigation as well as consultation with legal and other related staff members at the Office of the State Courts Administrator. Prior to specifically addressing each individual finding, I believe that it would be helpful to provide some background information regarding the development and implementation of the 16th Judicial Circuit's court reporting services plan. On February 23, 1995, the Supreme Court of Florida found that an -, emergency existed in the state's court reporting system and ordered each chief judge to develop a circuit plan for providing court reporting services. The plans were.to be consistent with the Fair Labor Standards Act as well as other state and federal laws. Upon receipt of the order of the Supreme Court of Florida, the court administrator's office for this circuit began to gather information on the various costs associated with court reporting throughout the county. On May 10 and 11, 1995, the Office of the State Courts Administrator sponsored a conference on court reporting to assist the circuits in developing a plan in compliance with the Supreme Court order. The chief judge, court administrator, 1 and two of the official court reporters for the 16th Judicial Circuit attended that conference. One of the major challenges facing the 16th Circuit in implementing a court reporting services plan, which changed the status of official court reporters to employees, was the fact that at the time, there was a limited number of court reporters in Monroe County. This set of circumstances had a direct impact on the availability and cost of hiring competent court reporters. On May 23, 1995, in order to ensure continuity of court reporting services, the chief judge and court administrator met collectively and individually with the circuit's four official • court reporters to achieve consensus for the employee model and to negotiate the terms and conditions of their employment. The circuit's original court reporting plan effective July 1, 1995 reflects the results of those negotiations. Since that time, the plan has been amended in 1995, 1998 and 1999 in a continuing effort to provide court reporting services in the most efficient and cost effective manner possible. Findings: Section A.1. Florida Keys Reporting, Inc., Unnecessary expenditure for criminal depositions Response: 1. The original court reporting services plan did not specifically address the responsibility of employee court reporters regarding depositions taken by the State Attorney's Office (SAO). Court Administration did, however, send a copy of the plan (Administrative Order 2.039, In re: Court Reporting Services P/an) to all appropriate officers, agencies, and parties including the SAO at the time of its recording with the Clerk of the Court. When the SAO entered a contract with Florida Keys Reporting, Inc. (FKR) to provide "court reporting services", Court Administration did not receive a copy of the contract and the SAO did not initiate communication with Court Administration regarding the use of employee court reporters for their depositions. In retrospect, this is one aspect of a complex and multi-faceted court reporting services plan where there should have been better coordination between the Circuit and the SAO. 2. Administrative Order 2.039 will be amended to specifically p y provide that the reporting of those criminal depositions taken by the SAO for which Monroe County has the responsibility to pay are part of the regular duties of employee court reporters when they are available. In addition, employee court reporters will be prohibited from reporting these depositions, outside the scope of their employment, as private, independent contractors. 2 if Findings: Section A.2. Florida Keys Reporting, Inc., Misleading invoices submitted Response: 1. Court Administration never specifically instructed the former Court Reporting Manager and Administrative Order 2.093 did not specifically provide that employee court reporters were prohibited from attending and reporting criminal depositions under Florida Keys Reporting, Inc.'s contract with the SAO. Clearly, there was a great deal of confusion regarding this work. The invoices described as "nonspecific"did not appear so at the time they were accepted, reviewed, and approved by Court Administration. Following Court Administration's submission of invoices for payment, another level of review takes place in Monroe County's Finance Department. The invoices discussed herein were also reviewed at that level apparently without notice or concern as to the documentation. Court Administration will continue to attentively scrutinize all invoices, of which there are literally thousands, prior to approval for payment. Findings: Section A.3. Florida Keys Reporting, Inc., Monroe County employees subcontracting for Florida Keys Reporting Response: 1. The court reporter employees were not independent contractors for the 16th Judicial Circuit under the arrangement described. The employees may have been working as independent contractors for FKR performing work for the SAO for which ultimately Monroe County was liable. However, as has been noted, this was obviously a complex and confusing area for all parties involved and it was not clearly defined in the court reporting plan that the employees were responsible for covering this work as time allowed. Further, the reporting and transcription of criminal depositions for the SAO would represent only a small fragment of the employee court reporters' overall responsibilities. For the Court, there is no blurring of these employees' status under the Fair Labor Standards Act (FLSA) —they are clearly employees and are not being treated as independent contractors by the Court. As has been previously stated, the Court will clarify the obligation of the employee reporters to report depositions for the SAO. Findings: Section A.4. Florida Keys Reporting, Inc., Multiple invoices submitted for the same work Response: 3 hI 1. Court Administration accepts, reviews, and approves invoices for payment for the 16th Judicial Circuit with intense scrutiny and attention to detail. It is regrettable and unfortunate that out of millions of dollars worth of invoices reviewed over more than seven years, mistakes were made causing a few invoices to be paid twice. Following Court Administration's submission of invoices for payment, another level of review takes place in Monroe County's Finance Department. The invoices discussed herein were also reviewed at that level. Court Administration is committed to exploring cost effective processes that provide 100% error free invoice submission. When Court Administration discovers errors made causing double payment, every effort is • made by court staff (with a great deal of success thus far) to collect the duplicate payment. In the instance of the $1,957.50 double payment, the duplicate payment was discovered rather quickly, either by the vendor, Court Administration or the Clerk's Office, since the vendor issued a reimbursement check eight days after the duplicate payment was made. As to the $72.00 double payment, Court Administration has requested that the Clerk research whether the vendor reimbursed the second payment. If the vendor has not reimbursed the $72.00, Court Administration will attempt to collect. Findings: Section A.S. Florida Keys Reporting, Inc., Noncompliance with state contract Response: 1. Court Administration has no authority or control over this contractual relationship. • Findings: Section B.1. Former Court Reporting Manager - ? Response: In view of the fact that the draft audit did not reveal this finding(s), it is not possible for the Circuit to formulate a response. Findings: Section B.2. Former Court Reporting Manager, Personal work performed on the job Response: 1. In terms of almost any criminal transcription (aside from work performed under FKR's contract with the SAO), the employee court reporters would have • been completing work well within the scope of their duties and there would have been instances when schedules would legitimately need to be adjusted to meet time deadlines for filing criminal transcripts. It is contrary to court policy for employees to perform personal work while on the job. If this � f 4 I� occurred, it did so without the knowledge, authorization or consent of the • Court Administrator. Findings; Section B.3. Former Court Reporting Manager, Private court reporters hired to cover criminal proceedings Response: 1. The Court has made, and continues to make, every effort to ensure that reporting services are rendered efficiently and economically, keeping a watchful eye on minimizing utilization of private court reporters. The unique geographical configuration of the 16th Judicial Circuit requires at times that court reporters be in attendance in several different courts at all three courthouse facilities throughout the Keys simultaneously. In addition, changes in schedule often occur: Hearings get cancelled, cases are settled or • take longer than expected; emergencies arise that may require a reporter for reporting or transcription; transcription deadlines for the 3rd District Court of Appeals loom. All of these demands and vagaries of the system, coupled with limited court reporting resources, require daily and sometimes hourly judgment calls as to how, when, and where to utilize the employee reporters and when to call in outside help. It is not an exact science. The Court Reporting Manager was and is the most knowledgeable and experienced individual to make those calls. In terms of the court reporting costs in question, it is relatively easy to second-guess decisions which were made at the time. However, the Court is unable to identify an adequate factual basis upon which to conclude that these costs were incurred needlessly or as the result of mismanagement. Nonetheless, in order to impose even tighter control, the Court will be formally establishing a threshold amount beyond which managers will be required to seek approval from the Court Administrator prior to procuring goods or services. • Findings: Section B.4. Former Court Reporting Manager, Employee civil reporting continued after Amendment 98-1 Response: 1. Court Administration was acutely aware that following the signing of Amendment 98-1 to the court reporting plan, there was a transition period during which time judges, attorneys, employee reporters, and private reporters experienced a delay in ultimately understanding, acclimating to, and strictly adhering to the new policies. The Amendment presented a significant change in the procedure for obtaining court reporting coverage for civil 5 proceedings, requiring a period of adjustment for all participants to adapt. Every effort was made not to continue cases that were ready for hearing or - trial just because an attorney may have forgotten to get a reporter and no private reporters were available on the spur of the moment. This effort included utilizing employee reporters as a last resort. Further, as recently as five months ago, the court was still conducting legal research and fine-tuning the plan to clarify what non-criminal court events should be expected to be • covered by employee reporters. However, during the transition, it was clearly • the Court's expectation that the Court Reporting Manager would still oversee the program's first priority— insure that the circuit courts had court reporting coverage. _ Findings: Section B.5. Former Court Reporting Manager, Employees doing business with their own governmental agencies Response: 1. It is the opinion of the 16th Judicial Circuit that the set of circumstances described herein does not violate Florida Statutes. The"agency"of the employee reporters is the State of Florida State Courts System 16th Judicial Circuit, not Monroe County and not the State Attorney's Office. However, in an abundance of caution, the Court will seek a legal opinion and act in accordance therewith. Findings: Section B.6. Former Court Reporting Manager, Financial disclosure for employees with $1000+ purchasing authority Response: 1. Court Administration will seek a legal opinion regarding which employees must file the Statement of Financial Interest (Form 1). However, as noted in the Court's response to the Finding in Section B.3, the court will be establishing a threshold amount beyond which managers will be required to seek approval from the Court Administrator prior to procuring any goods or services which could render this issue moot. Please note that the threshold amount for purchasing authority as it relates to this issue was raised to $15,000 during the 1999 legislative session (Section 287.017(1)(a), Florida Statutes). Findings: Section B.7 Former Court Reporting Manager, Time keeping for part- time employees Response: 6 1. Court Administration was not aware of any other method being utilized for time keeping for part-time employees and did not approve nor authorize any other method. It has always been the 16th Judicial Circuit's policy under Section 4.05, Florida State Courts System Personnel Regulations Manual, for employees to keep an accurate record of their hours worked. Court Administration was not advised by the Court Reporting Manager or by any part-time employee that an alternative time keeping method was being used. The Circuit does not now employ, nor has it employed for over a year, part- time personnel for court reporting services. 2. Court Administration will seek a legal opinion regarding whether the former Court Reporting Manager's time keeping method for part-time court reporters complied with the Fair Labor Standards Act. It is highly improbable that Monroe County would be liable for any additional compensation to the affected part-time employees since compensation would only need to be made if any of the employees actually performed over forty hours of court work in a workweek and could provide documentation reflecting same. Findings: Section B.8. Former Court Reporting Manager, Missing Circuit Court property Response: 1. Exit procedures, including signed receipts, are and have been in place for several years to ensure recovery of the court's property from employees before their separation from the agency. In this particular instance, numerous attempts were made to locate and retrieve the disks described. A meeting was held between the Court Administrator, the Chief Judge and the former Court Reporting Manager at which time.a request for assistance from the former Manager was made as to locating the missing disks. The former Court Reporting Manager agreed to assist and physically escorted the Chief Judge and Court Administrator to the last location of the disks to her knowledge, pointing out exactly where she had placed them. The disks' disappearance remains a mystery. The actual court reporting paper notes, however, are in the court's possession having been left by the former Court Reporting Manager and retained in storage for back up purposes. Findings: Section B.9. Former Court Reporting Manager, Monroe County phone number in private business advertisements Response: 1. It has always been the policy of the 16th Judicial Circuit, albeit unwritten, to - prohibit employees from using their court work telephone number in �._� 7 I— advertisements for private business. As well, employees have always been prohibited from conducting private business on work time. Court Administration had no knowledge of these activities nor approved them. Findings: Section B.10. Former Court Reporting Manager, Unlawful travel reimbursements Response: 1. Court Administration will exercise care when approving expense reimbursements for outside contractors. 2. Consistent with the procedures in the Court Reporting P/an (paragraph 7), it was the Court Reporting Manager's responsibility to insure coverage for civil court hearings and it was the historical expectation of the civil justice community that the Court would insure these hearings would be covered by a reporter. Due to the limited number of local freelance court reporters and private court reporting firms, the manager was given permission to seek assistance from outside the county which necessitated guaranteeing travel expenses. Certainly, the system would not have been well served by continuing civil cases simply because there was no way to report them. However, there does not appear to be any rule, statute or other provision which specifically authorizes these travel expenses to be paid by the County. Accordingly, efforts will be made to recover the travel expenses in question. Findings: Section C.1. Guidelines and Policy Considerations, Selecting temporary court reporting help Response: 1. There was no favoritism towards Florida Keys Reporting; it was the only provider physically located in the Upper Keys and available on short notice to• provide coverage in Plantation Key. Given the geographic constraints, there could be no expectation that providers would travel 177 miles roundtrip from Key West or 80 miles roundtrip from Marathon to cover hearings and obviously they couldn't provide services within minutes of a request. The Court was always mindful of travel costs (including time and mileage) and availability of focal and employee reporters when scheduling for outside reporters for Plantation Key. In addition, over time, quite a few providers would not accept work covering circuit court in Plantation Key despite the former Court Reporting Manager's efforts to develop and maintain positive working relationships with providers. Florida Keys Reporting was willing to work in the Plantation Key circuit court, proved prompt.and reliable, and provided quality work for the Court. The current Court Reporting Manager will be directed to develop lists by geographical area of available providers ! 8 acceptable to the Court and rotate temporary work at the respective courthouses among them. Findings: Section C.2. Guidelines and Policy Considerations, Electronic recorder • operators Response: 1. Administrative orders (currently, #2.012 and #2.013) were originally issued in the 16th Judicial Circuit in the early 1980's authorizing and outlining the provision of electronic recordation services for both courtroom proceedings and depositions. Though the Circuit has a considerable amount of experience (over twenty years) in this method of reporting and continues to utilize it to the fullest extent possible, certain problems have arisen and the method is not always reliable. In attempting to use the method for"proceedings that typically generate few transcripts"one may not always "guess"correctly which proceeding that might be. For example, while recordation is used almost exclusively for misdemeanor proceedings an appeal (which always requires a transcript) could be filed in any misdemeanor jury trial. The circuit has experienced numerous problems in attempting to create a record on • appeal from misdemeanor trial recordation. If a record is not available or is not clear, the appellate court sends the case back to the lower court to determine a set of facts stipulated by both the prosecution and the defense. These stipulated facts are then to be sent back up to the appellate court so that they may determine the merits of the appeal. It has been the experience of county court that such a stipulation by the defense never occurs. Thus, there is no choice but to dismiss the case against the criminal defendant no matter how strong the evidence might have been. Notwithstanding these critical problems, the Circuit is committed to continuing to iron out the wrinkles in the existing recordation program and to utilize it where and when possible. Concurrently, the Circuit is exploring the feasibility of replacing the existing analog equipment with new, more reliable digital recordation technology. This may necessitate the purchase of technical assistance services as well. Due to the Circuit's geographical configuration, resulting in three courthouse locations, providing no economy of scale, the lack of technical resources, and the onslaught of emerging recordation technologies, there does not appear to be reliable cost benefits at this time to purchasing the services of a recordation system's manager, operators, technicians, and transcriptionists, all of whom are necessary for an expanded recordation program. To date, Deputy Clerks have acted as in-court electronic operators at the county court level (at no additional expense to the county). It should be noted that the 16th Judicial Circuit authorized the use of electronic recording equipment in the taking of depositions by the Office of 9 • the Public Defender in 1981. Since that time, the Circuit has expanded not only the program but also the court's oversight of the program to reduce and control costs for the county. Many judicial circuits in Florida do not provide such services for their respective counties. Findinas: Section C.3. Guidelines and Policy Considerations, Reconsideration of employee court reporters Response: 1. The Court Administrator monitors court reporting detailed expenses every month as well as scrutinizes, prior to approval, every payment for court reporting expenses. Expenses are also analyzed in conjunction with annual budget preparation. The assessment of the delivery of court reporting services is constant and ongoing. When the initial court reporting plan was developed, court reporting providers, the chief judge, and the court administrator critically reviewed the Supreme Court guidelines and attended various workshops at a statewide conference on the required change in the delivery of court reporting services. Meetings were held with officials and judges, negotiations were conducted with providers, a detailed expense analysis was undertaken and revenues were projected. It was clear that the plan was the most cost effective for the 16th Judicial Circuit. Continuously since that time, the Court and Court Administration have regularly reviewed how services are provided. This is illustrated by the changes in the way civil matters are reported -- changes • that were contemplated in early 1997 (less than two years after the Supreme Court order requiring the plan) and finalized in 1998. And although it is a matter of fact that court reporting is inherently expensive, the Circuit continues to look for ways to economize these statutorily required services. 10 OAK S( MARK H. JONE S CHIEF JUDGE SIXTEENTH JUDICIAL CIRCUIT OF FLORIDA MONROE COUNTY COURTHOUSE ANNEX KEY WEST, FLORIDA 33040 SANDRA S. BAZO LINDA M. YAKEL TEL: 305/292-3422 JUDICIAL ASSISTANTS MEMORANDUM FAX: 305/295-3625 I ` To:. Danny L. Kolhage, Clerk of the Circuit Court From: Mark H. Jones, Chief Judge Date: June 9, 2000 Re: Preliminary Audit Report of Findings Previously Omitted This memorandum contains the responses of the 16th Judicial Circuit to the findings contained in the Preliminary Audit Report of Findings Previously Omitted which you first provided to me on June 7, 2000. This response should be considered in conjunction with the previous response memoranda which have been submitted to you. Findings:,. Section B.1.a. Former Court Reporting Manager, Working second jobs on Monroe County time— leave not taken Response: 1. At the time in question (and to this date), the 16th Judicial Circuit had in effect a clear prohibition against the performance of outside work by employee court reporters except while on annual leave or compensatory leave or after regular office hours. The instances set forth in the audit where this prohibition was apparently violated occurred without the knowledge, consent, approval or authorization of Court Administration. 2. The 16th Judicial.Circuit is committed to ensuring that employee time records are accurate. Adherence to proper policies and procedures regarding the maintenance of employee time sheets has been and will continue to be emphasized to both employees and supervisors. Court Administration will closely monitor compliance. 3. Court Administration is committed to working with Monroe County in pursuing restitution from the court reporter employees and is now in a position to do so having received the findings which were omitted from the previous preliminary audit report. I i Findings: Section B.1.b. Former Court Reporting Manager, Working second jobs on Monroe County time—ambiguous work status Response: 1. See response to Section B.1.a. above. 2. Court Administration is committed to working with Monroe County in pursuing restitution from the appropriate civil attorneys and is now in a position to do so having received the findings which were omitted from the previous preliminary audit report. • •