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Fiscal Year 2020 MONROE COUNTY., FLORIDA SHERIFF FINANCIAL STATEMENTS MONROE COUNTY, FLORIDA SHERIFF TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR ............................................................................................... 1-2 FINANCIAL STATEMENTS Balance Sheet-Governmental Funds..............................................................................................................3 Statement of Revenues, Expenditures and Changes in Fund Balances - GovernmentalFunds.....................................................................................................................................4 Statement of Fiduciary Assets and Liabilities-Agency Funds.........................................................................5 Notes to Financial Statements.................................................................................................................... 6-15 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -General Fund..............................................................................................................16 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual—Major Special Revenue Funds............................................................................. 17-23 OTHER SUPPLEMENTARY INFORMATION Combining Statement of General, Trauma Star and Radio Communications Funds by Service Area....................................................................................................24 Non-Major Special Revenue Funds Description.............................................................................................25 Combining Balance Sheet— Non-Major Governmental Funds- SpecialRevenue Funds ........................................................................................................................ 26-28 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non-Major Governmental Funds—Special Revenue Funds................................................................. 29-31 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual—Non-Major Special Revenue Funds..................................................................... 32-37 AgencyFunds Description..............................................................................................................................38 Combining Statement of Changes in Fiduciary Assets and Liabilities- AIIAgency Funds.........................................................................................................................................39 SUPPLEMENTARY REPORTS Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards........................................................................................................... 40-41 Independent Auditor's Management Letter.............................................................................................. 42-43 Report of Independent Accountant on Compliance with Local Government Investment Policies.................................................................................................................44 Cherry rl- Report of Independent Auditor To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Sheriff (the "Sheriff') as of and for the year ended September 30, 2020, and the related notes to financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Sheriff as of September 30, 2020, and the respective changes in financial position thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with Rules of the Auditor General of the state of Florida. In accordance with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each fund of Monroe County, Florida that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2020, and the changes in its financial position for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Required Supplementary Information as listed in the table of contents be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriffs basic financial statements. The other supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the financial statements. The other supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with accounting standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 3, 2021 on our consideration of the Sheriffs internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the effectiveness of the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Sheriffs internal control over financial reporting and compliance. 0 L.) 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The Sheriffs financial statements do not purport to reflect the financial position or the results of operations of Monroe County, Florida (the "County") taken as a whole. The financial statements of the Sheriff have been prepared in accordance with accounting principles and reporting guidelines established by the Governmental Accounting Standards Board ("GASB"). Entity status for financial reporting purposes is governed by Statement 14, as amended. Although the Sheriffs Office is operationally autonomous from the County, it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, under GASB guidelines, the Sheriff is reported as a part of the primary government of Monroe County, Florida. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - The Sheriffs financial statements are prepared for the purpose of complying with Section 218.39(2), Florida Statutes and Chapter 10.550, Rules of the Auditor General (the "Rules"), which requires the Sheriff to only present fund financial statements. The General Fund and Special Revenue Funds are governmental funds that use the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. Description of Funds-The Sheriff reports the General Fund and Special Revenue Funds as governmental funds and Agency Funds as a fiduciary fund type. The General Fund is used to account for all revenues and expenditures applicable to the general operations of the Sheriff. The Special Revenue Funds account for the proceeds and uses of specific revenue sources that are legally restricted or committed to expenditures for a specific purpose. Agency Funds are used to account for assets held by the Sheriff as agent. Agency funds are custodial in nature and do not involve measurement of results of operations. The Sheriff reports the General Fund and the following seven Special Revenue Funds as major funds: Trauma Star, Radio Communications, High Intensity Drug Trafficking Area ("HIDTA") Grants, Grants, Shared Asset Forfeiture, Federal Forfeiture, and E-911. The Trauma Star fund accounts for the revenues and expenditures related to the function of air and ambulance transports. The Radio Communications fund accounts for the revenues and expenditures related to radio communication functions county-wide to include the majority of federal, state and local entities. The HIDTA Grants Fund accounts for the revenues and expenditures related to the Office of National Drug Control Policy ("ONDCP") grants. The Grants Fund accounts for receipts and disbursements related to other various local, state and federal grants. The Shared Asset Forfeiture Fund accumulates stipulated transfers from the Federal Forfeiture Fund and its investment income is used to fund awards to non-profit organizations, as determined by an advisory board. The Federal Forfeiture Fund accounts for revenues from the U.S. Departments of Justice and Treasury. Expenditures are made in accordance with the guidelines issued by these agencies. The E-911 Fund accounts for fees levied on each telephone access line in Monroe County for the enhancement of the 911 emergency telephone systems. 6 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 1—Summary of significant accounting policies (continued) Transfers - The Sheriff transfers funds to administer certain Special Revenue Fund programs. In addition, the extent to which General Fund, Trauma Star, Radio Communications and the State Forfeiture Fund revenues exceed expenditures is reflected as transfers out and as liabilities to the Board of County Commissioners. Fund Balance Presentation - In accordance with GASB Statement 54, the fund balances of the governmental funds are classified as restricted or committed. This classification includes amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors or the laws or regulations of other governments. Non-Spendable - Include amounts that cannot be sent because they are either not in spendable form, or for legal or contractual reasons, must be kept intact. This classification includes inventory. Unassigned-The residual classification of the General Fund. Other governmental funds might report a negative balance in this classification, as the result of overspending for specific purposes for which amounts had been restricted, committed, or assigned. Unassigned fund balance does not necessarily represent the amount of fund balance that can be appropriated. Budgetary Requirements - General fund expenditures are controlled by appropriations in accordance with the budget requirements set forth in the Florida Statutes. Budgets are administered for all funds and are prepared on a basis consistent with accounting principles generally accepted in the United States of America. Cash and Cash Equivalents and Investments- Highly liquid investments with maturities of 90 days or less when purchased are considered cash equivalents. Included are investments in the State Board of Administration Local Surplus Funds Investment Pool Trust Fund ("SBA"), which consists of the Florida PRIME investment pool, a qualifying fund that operates essentially as a money market fund, and municipal bonds. Florida PRIME is stated at amortized cost, which is substantially the same as fair value, and municipal bonds are stated at fair value based on Level 2 of the fair value hierarchy, using quoted prices for similar assets in active markets or identical or similar assets in inactive markets. Receivables-All receivables are shown net of an allowance for uncollectibles. Historical collection experience is used to estimate the accounts receivable allowance. The complete balance in the Inmate Fund is deemed uncollectible in the amount of$310,560 at September 30, 2020. Capital Assets - Capital assets are recorded as expenditures in the General Fund or the Special Revenue Funds at the time of purchase and are capitalized at historical cost in the government-wide financial statements of the County. Gifts or contributions and seized property are recorded first in the Sheriffs financial statements as well as in the government-wide financial statements at fair market value at the time received. In addition, the Board of County Commissioners provides at no cost the office space and certain other expenditure items used in the Sheriffs operations. It is the policy of the Sheriff to capitalize all assets costing more than $1,000 with an estimated useful life of two or more years. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Years Buildings and infrastructure 10-50 Machinery and equipment 5-10 7 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 1—Summary of significant accounting policies (continued) Compensated Absences - The Sheriff permits employees to accumulate earned but unused vacation and sick pay benefits. The Sheriff is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation is accrued in the government-wide financial statements of the County. Use of Estimates - The preparation of financial statements requires management to make use of estimates that affect reported amounts. Actual results could differ from estimates. Note 2—Deposits and investments Cash, cash equivalents and investments at September 30, 2020 consist of the following: Type Fair Value Demand deposits $ 11,699,508 Municipal Bonds 4,893,153 Florida PRIME 167,335 $ 16,759,996 Deposits - Cash and cash equivalents include demand deposits insured by the Federal Deposit Insurance Corporation (FDIC) or covered by the state of Florida collateral pool, a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. Cash equivalents also include the investment in Florida PRIME. Investments - Florida Statutes and the Sheriffs investment policy authorize investments in certificates of deposit, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, money market funds, direct obligations of the U.S. Treasury, federal agencies and instrumentalities, rated or unrated bonds, notes or instruments, securities of or interests in any investment company or investment trust, commercial paper and Municipal Securities. As of September 30, 2020, the Sheriff had $167,335 invested in the SBA and $4,893,153 in Municipal Bonds, which was 30% of the Sheriffs total cash and cash equivalents and investments. Of the $167,335 invested in the SBA, 100% is invested in Florida PRIME. The Municipal Bonds are rated by Standard and Poor's from AA-through AAA and the ratings on the Municipal Bonds from Moody's are rated from AA1 through AA3. Florida PRIME is rated by Standard and Poor's. The current rating is AAAm. The weighted average days to maturity (WAM) of the Florida PRIME at September 30, 2020 is 48 days. Next interest rate reset days for floating rate securities are used in the calculation of the WAM. The weighted average life (WAL) of Florida Prime at September 30, 2020, is 63 days. 8 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 3—Interfund receivables and payables Interfund receivables and payables at September 30, 2020 consist of the following: Due From Due to Other Funds Other Funds General $ 237,558 $ 1,054,375 H I DTA 129,642 992,435 Grants 320,819 127,374 SAFF - 35 E-911 - 31,094 Other governmental 1,548,298 31,004 $ 2,236,317 $ 2,236,317 Note 4—Capital assets A summary of changes in the Sheriffs capital assets, presented in the government-wide financial statements of the County, is as follows: Balance Balance 10/01/2019 Additions Deductions 09/30/2020 Capital assets not depreciated: Construction in progress $ 27,250 $ 115,535 $ - $ 142,785 Total capital assets not depreciated $ 27,250 $ 115,535 $ - $ 142,785 Capital assets depreciated: Buildings and improvements $ 4,870,286 $ 2,049,561 $ 3,676,327 $ 3,243,520 Equipment 56,201,259 3,275,362 7,558,379 51,918,242 Total capital assets depreciated $ 61,071,545 $ 5,324,923 $ 11,234,706 $ 55,161,762 Accumulated depreciation $ 32,987,897 $ 3,189,958 $ 3,151,494 $ 33,026,361 9 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 5—Long-term debt The Sheriff permits employees to accumulate earned but unused vacation and sick pay benefits. The Sheriff is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation for compensated absences is accrued in the government-wide financial statements of the County. A summary of activity for the Sheriffs compensated absences obligation is as follows: Absences Long-term debt, beginning of year $ 7,999,878 Additions 4,302,191 Reductions (3,447,676) Long-term debt, end of year $ 8,854,393 Note 6—Fund balances In the governmental fund financial statements, fund balance is composed of two classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. The governmental fund types classify fund balances as follows: Restricted Fund Balance - This classification includes revenue sources that are restricted to specific purposes externally imposed by creditors or imposed by law. Grants Fund is restricted for Federal Emergency Management Agency funding which has been expended but not yet received which has specific eligibility requirements. Shared Asset Forfeiture Fund is restricted upon Ordinance 030-2000 which specifies use must be for law enforcement crime prevention, drug and alcohol abuse prevention and treatment, mental and physical health of minors and adults, and cultural, artistic, educational, recreational and sports programs for Monroe County youth. E-911 Fund is restricted based upon the E-911 costs allowable by State Statute [F.S. 365]. Commissary Fund is restricted for Inmate and Farm as outlined by State Statute [F.S. 951.23(9)]. Inter-Agency Communications Fund is restricted by State Statute [318.21(9)]. Committed Fund Balance - Portion of fund balance that can only be used for specific purpose imposed by the Sheriff(highest level of decision-making authority). Any changes or removal of specific purposes requires action by the Sheriff. Contract Administrative Fund is committed for the administration of contracts between the Sheriff and third parties. 10 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 7—Retirement plans Plan Description - The Sheriff's employees participate in the Florida Retirement System (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan") alternative to the FRS Pension Plan, which is administered by the State Board of Administration. As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college, or a participating city or special district within the state of Florida. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida Legislature. Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers' class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Special Risk Administrative Support class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with six years of credited service, or with 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life equal to 3% of their final average compensation based on the five highest years of salary for each year of credited service. Substantial changes were made to the Pension Plan during fiscal year 2011 affecting members enrolled on or after July 1, 2011 by extending the vesting requirement for Regular, Senior Management Service, Elected Officers' and Special Risk Administrative Support class members to eight years of credited service and increasing normal retirement to age 65 with at least eight years of credited service or 33 years of service regardless of age. The vesting requirement for Special Risk class members was extended to eight years of credited service and increasing normal retirement to age 60 with at least eight years of credited service or 30 years of service regardless of age or age 57 with 30 years of combined Special Risk Class service and military service. Also, the final average compensation of these members will be based on the eight highest years of salary. A post-employment health insurance subsidy is also provided to eligible retired members through the FRS in accordance with Florida Statutes. The HIS Plan provides a monthly benefit to assist retirees in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Eligible retirees and beneficiaries receive a monthly health insurance subsidy payment of$5 for each year of creditable service, with a minimum payment of$30 and a maximum payment of $150 per month. The HIS Plan is funded by required contributions from FRS participating employees as set forth by the Florida Legislature, based on a percentage of gross compensation for all active FRS members. 11 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 7—Retirement plans (continued) In addition to the above benefits, the FRS administers a Deferred Retirement Option Program ("DROP"). This program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants. For those members who elect participation in the Investment Plan, rather than the Pension Plan, vesting occurs at one year of service. These participants receive a contribution for self-direction in an investment product with a third party administrator selected by the State Board of Administration. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04% of payroll and by forfeited benefits of plan members. The Monroe County Sheriffs Office recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan, the defined contribution plan and the HIS Plan, amounting to $5,632,402, $1,200,838 and $629,859,respectively, for the fiscal year ended September 30, 2020.The Monroe County Sheriffs Office payments for the Pension Plan and the HIS Plan after June 30, 2020, the measurement date used to determine the net pension liability associated with the Pension Plan and HIS Plan, amounted to $1,487,461 and $149,370, respectively. The Sheriff is not legally required to and does not accumulate expendable available resources to liquidate the retirement obligation related to its employees. Accordingly, the net pension liability and associated deferred outflows and deferred inflows are presented on the government-wide financial statements of the County, following requirements of GASB Statement 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement 27, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement 68. Funding Policy-All enrolled members of the FRS other than DROP participants are required to contribute 3% of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates. The employer contribution rates by job class for the periods from October 1, 2019 through June 30, 2020 and July 1, 2020 through September 30, 2020, respectively, were as follows: regular members 8.47% and 10%, special risk—25.48% and 24.45%, special risk administrative support — 38.59% and 35.84%, senior management — 25.41% and 27.29% and, county elected officers — 48.82% and 49.18%. During the fiscal year ended September 30, 2020, the Monroe County Sheriffs Office contributed to the plan an amount equal to 22.44%of covered payroll. The state of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the website www.dms.myflorida.com/workforce—operations/retirement/publications. 12 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 7—Retirement plans (continued) Monroe County Sheriff's office offers 457 Deferred Compensation Programs to all employees of the agency. Employees may participate in the plan through payroll deductions and the plan is funded by Mass Mutual Financial Group and AIG Valic group variable annuity contract. Contributions are invested at the employee's direction through the options available under the program. Employees are fully vested at time of enrollment. The Monroe County Sheriffs Office has no liability beyond the payment of bi-weekly payroll contributions. Monroe County Sheriffs office also offers a profit-sharing pension plan known as the 401(a) Discretionary Contribution Pension Plan. Only full-time employees of the Sheriffs office classified as Telecommunications Officer, Telecommunications Supervisor, or Telecommunications Director are covered under the pension program established. Effective July 20, 2009, new hired employees will be exempt from the Plan. Those classes of employees are eligible to participate in the program on the first day of the 12-consecutive month period commencing on October 1. The plan allows the agency contribute ongoing non-elective contributions to each eligible employee's account. The routine amount contributed to each employees account is the variance between FRS's special risk retirement rate and the rate given to the FRS class-group that the Dispatcher's fall into. The Sheriff contributed $12,197 for the year ended September 30, 2020 and there were no employee contributions. Note 8—Other post-employment benefits (OPEB) Plan In addition to the retirement plan benefits described in Note 7, the Sheriff offers to its employees a single- employer defined benefit healthcare plan, which is administered by the Board. Florida Statute 112.0801 requires the County to provide retirees and their eligible dependents with the option to participate in the OPEB Plan if the County provides health insurance to its active employees and their eligible dependents. The OPEB Plan provides medical coverage, prescription drug benefits, and life insurance to both active and eligible retired employees. The OPEB Plan does not issue a publicly available financial report. No assets are accumulated in a trust that meets the criteria as set forth in GASB Statement 75, Accounting and Financial Reporting for Post- employment Benefit Plans Other Than Pensions. The Board may amend the OPEB Plan design, with changes to the benefits, premiums and/or levels of participant contribution at any time. On at least an annual basis, in an open session, and prior to the annual enrollment process, the Board approves the rates for the coming calendar year for the retiree and County contributions. Eligibility for post-employment participation in the OPEB Plan is limited to full-time employees of the County, and the Constitutional Officers. An employee who retires as an active participant in the OPEB Plan and was hired on or after October 1, 2001 may continue to participate in the OPEB Plan by paying the monthly premium established annually by the Board. An employee who retires as an active participant in the plan, was hired prior to October 1, 2001, has at least ten years of full-time service with the County, and meets the retirement criteria of the FRS but is not eligible for Medicare, may maintain group health insurance benefits with Monroe County following retirement, provided the retiring employee contributes the amounts shown in the table below. 13 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 8—Other post-employment benefits (OPEB) Plan (continued) Contribution as Percentage of Annual Actuarial Rate Plan Years of Service with Monroe Count Year 25+ 20-24 10-19' 2020 HISM 20% 34% 2021 HIS 22% 42% 2022 HIS 25% 50% 2023 HIS 25% 50% 2024 HIS 25% 50% HIS is the State of Florida's Health Insurance Subsidy plan that assists retirees in paying the cost of health insurance as explained in Note 5. Retirees who have met the requirements for early retirement, have not achieved age 60 and whose age and years of service do not equal 70 (rule of 70) must pay the standard monthly premium until the age criteria or the rule of 70 is met. At that time, the retiree's cost of participation will be based on the preceding table. Surviving spouses and dependents of participating retirees may continue in the plan if eligibility criteria specific to those classes are met. An employee who retires as an active participant in the plan, was hired prior to October 1, 2001, has at least ten years of full-time service with the County, and meets the retirement criteria of the FRS and is eligible for Medicare at the time of retirement or becomes eligible for Medicare following retirement, may maintain group health insurance benefits with Monroe County following retirement, provided the retiring employee contributes the Actuarial Rate for Medicare retirees as determined by the actuarial firm engaged by the County, less a $250 per month County subsidy. Alternatively, retirees meeting these criteria may elect to leave the County health plan and receive a $250 per month payment from the County, payable for the lifetime of the retiree. The Board engages an actuarial firm on a biannual basis to determine the County's accrued net OPEB liability. The Sheriff has no responsibility to the OPEB Plan other than to make the periodic payments determined by the Board, which are presented as expenditures when made and amounted to $1,394,172 for the year ended September 30, 2020. Further information about the OPEB Plan is available in the County's CAFR which is published on the Clerk's website at www.clerk-of-the-court.com. Note 9—Risk management The Sheriff is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Sheriff participates in the coverage provided by the Board for Workers' Compensation, Group Insurance, and Risk Management Internal Service Funds. Under these programs, Workers' Compensation provides $500,000 coverage per claim for regular employees. Workers' Compensation claims in excess of the self-insured coverage are covered by an excess insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $200,000 self-insured retention, and building property damage is covered for the actual value of the building with a deductible of$50,000. Deductibles for windstorm and flood vary by location. Monroe County purchases commercial insurance for claims in excess of coverage provided by the funds and for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years. The Sheriff makes payments to the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. 14 MONROE COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 10—Litigation From time to time, the Sheriff is a party to various lawsuits and claims, which it vigorously defends. Such matters arise out of the normal course of its operation, some of which are covered by insurance policies or by the Sheriffs participation in the Florida Sheriffs Self-Insurance Fund. While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on the Sheriffs financial position. Note 11—Lease commitments Operating leases - The Sheriff leases office space, equipment and vehicles under operating lease agreements. These lease agreements include options to extend the leases for additional terms as well as cancellation provisions. Total lease payments made during the fiscal year ended September 30, 2020 were $5,802,589. The following is a schedule by years of minimum future rentals under operating leases as of September 30, 2020: Years Ending September 30, 2020 2021 $ 5,507,442 2022 4,544,508 2023 4,151,463 2024 3,423,376 2025 2,015,118 Thereafter 2,725,545 $22,367,452 For those leases that are increased annually by the Consumer Price Index (CPI) and the lease agreement does not state a minimum or maximum rate for the remainder of the lease term, the same known lease expense is used for the remainder of the lease term in the future rental schedule above. Note 12—Contingencies The Sheriff is the recipient of grants that are subject to special compliance requirements and audits by the grantor agencies that may result in disallowed expense amounts. These amounts constitute a contingent liability of the Sheriff. The Sheriff does not believe any contingent liabilities to be material to the financial statements. During 2020, an outbreak of a novel strain of coronavirus ("COVID-19") emerged globally. As a result of the spread of COVID-19, economic uncertainties have arisen that could negatively impact the revenue and operations for an indeterminable period of time. Other financial impacts could occur that are unknown at this time. 15 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- GENERAL FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental- BOCC $ 51,714,668 $ 52,592,711 $ 52,622,140 $ 29,429 Investment income - - 92,901 92,901 Miscellaneous income - 107,000 452,672 345,672 Total revenues 51,714,668 52,699,711 53,167,713 468,002 Expenditures: Current: Personnel services 40,693,396 40,598,961 39,387,414 1,211,547 Operating expenses 10,001,901 10,382,879 10,209,337 173,542 Capital outlay 919,371 1,577,021 1,429,969 147,052 Total expenditures 51,614,668 52,558,861 51,026,720 1,532,141 Excess of revenues over(under) expenditures 100,000 140,850 2,140,993 2,000,143 Other financing sources(uses): Insurance proceeds - 34,150 40,716 6,566 Transfer(to)/from Board of County Commissioners - - (1,343,196) (1,343,196) Transfer(to)/from other governments - - (678,754) (678,754) Transfer(to)/from others - - (1,500) (1,500) Transfers(to)/from other funds (100,000) (175,000) (158,259) 16,741 Total other financing sources(uses) (100,000) (140,850) (2,140,993) (2,000,143) Excess of revenues over expenditures and other financing sources(uses) - - - - Fund balances, beginning of year - - - - Fund balances,end of year $ 16 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-TRAUMA STAR YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 4,780,397 $ 4,780,397 $ 4,780,397 $ - Total revenues 4,780,397 4,780,397 4,780,397 - Expenditures: Current: Personnel services 1,767,323 1,737,323 1,429,652 307,671 Operating expense 2,998,074 2,998,074 2,866,653 131,421 Capital outlay 15,000 45,000 32,550 12,450 Total expenditures 4,780,397 4,780,397 4,328,855 451,542 Excess of revenues over(under) expenditures - - 451,542 451,542 Other financing sources(uses): Transfer(to)/from Board of County Commissioners - - (451,542) (451,542) Total other financing sources(uses) - - (451,542) (451,542) Excess of revenues over expenditures and other financing sources(uses) - - - - Fund balances, beginning of year - - - - Fund balances, end of year $ 17 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- RADIO COMMUNICATIONS YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental- BOCC $ 643,086 $ 863,086 $ 792,449 $ (70,637) Charges for services - - 70,637 70,637 Total revenues 643,086 863,086 863,086 - Expenditures: Current: Personnel services 182,058 232,058 204,858 27,200 Operating expense 453,028 603,028 581,054 21,974 Capital outlay 8,000 28,000 19,747 8,253 Total expenditures 643,086 863,086 805,659 57,427 Excess of revenues over(under) expenditures - - 57,427 57,427 Other financing sources(uses): Transfer(to)/from Board of County Commissioners - - (57,427) (57,427) Total other financing sources(uses) - - (57,427) (57,427) Excess of revenues over expenditures and other financing sources(uses) - - - - Fund balances, beginning of year - - - - Fund balances,end of year $ 18 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- HIDTA GRANTS FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other government units $ 20,975,000 $ 20,675,000 $ 20,605,577 $ (69,423) Total revenues 20,975,000 20,675,000 20,605,577 (69,423) Expenditures: Current: Personnel services 4,100,000 3,875,000 3,850,993 24,007 Operating expenses 15,525,000 15,300,000 15,274,163 25,837 Capital outlay 1,350,000 1,500,000 1,480,421 19,579 Total expenditures 20,975,000 20,675,000 20,605,577 69,423 Excess of revenues over(under)expenditures - - - - Other financing sources: Transfers(to)/from other funds - - - - Transfer(to)/from other governments - - - - Total other financing sources - - - - Excess of revenues and other financing sources over expenditures - - - - Fund balances, beginning of year - - - - Fund balances, end of year $ - $ 19 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- GRANTS FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental- BOCC $ - $ - $ 72,786 $ 72,786 Intergovernmental-other government units 2,800,000 3,415,000 3,163,309 (251,691) Total revenues 2,800,000 3,415,000 3,236,095 (178,905) Expenditures: Current: Personnel services 475,000 475,000 460,651 14,349 Operating expenses 225,000 150,000 137,838 12,162 Capital outlay 45,000 47,000 42,942 4,058 Total expenditures 745,000 672,000 641,431 30,569 Excess of revenues over(under)expenditures 2,055,000 2,743,000 2,594,664 (148,336) Other financing sources: Transfers(to)/from other funds - - 146,670 146,670 Total other financing sources - - 146,670 146,670 Excess of revenues over expenditures and other financing sources(uses) - - 2,741,334 2,741,334 Fund balances, beginning of year - - (2,486,179) (2,486,179) Fund balances, end of year $ - $ - $ 255,155 $ 255,155 20 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- SHARED ASSET FORFEITURE FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Investment income $ 450,000 $ 340,000 $ 336,161 $ 3,839 Total revenues 450,000 340,000 336,161 3,839 Expenditures: Current: Operating expenses 200 100 35 65 Aid to other governments/non-profits 151,000 113,000 112,308 692 Total expenditures 151,200 113,100 112,343 757 Excess of revenues over(under)expenditures 298,800 226,900 223,818 3,082 Fund balances, beginning of year 4,935,472 4,935,472 4,935,472 - Fund balances, end of year $ 5,234,272 $ 5,162,372 $ 5,159,290 $ 3,082 21 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- FEDERAL FORFEITURE FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental -other government units $ - $ - $ 428,618 $ 428,618 Investment income - - 41,402 41,402 Total revenues - - 470,020 470,020 Expenditures: Current: Personnel services 55,000 57,000 54,660 2,340 Operating expenses 135,000 35,000 24,406 10,594 Capital expenses 400,000 350,000 328,889 21,111 Total expenditures 597,000 442,000 407,955 34,045 Excess of revenues over(under) expenditures (597,000) (442,000) 62,065 504,065 Other financing sources(uses) Transfers(to)/from Board of County Commissioners - (3,750,000) (3,749,841) 159 Transfer(to)/from other governments - - - - Total other financing sources(uses) - (3,750,000) (3,749,841) 159 Excess of revenues over(under)expenditures (597,000) (4,192,000) (3,687,776) 504,224 Fund balances, beginning of year 3,687,776 3,687,776 3,687,776 - Fund balances,end of year $ 3,090,776 $ (504,224) $ - $ 504,224 22 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- E-911 YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 485,000 $ 575,000 $ 573,535 $ (1,465) Investment income 20,000 20,000 14,621 (5,379) Total revenues 505,000 595,000 588,156 (6,844) Expenditures: Current: Personnel services 510,000 490,000 484,674 5,326 Operating expense 225,000 200,000 195,909 4,091 Capital outlay 58,000 5,000 - 5,000 Total expenditures 793,000 695,000 680,583 14,417 Excess of revenues over(under) expenditures (288,000) (100,000) (92,427) 7,573 Fund balances, beginning of year 1,383,107 1,383,107 1,383,107 - Fund balances, end of year $ 1,095,107 $ 1,283,107 $ 1,290,680 $ 7,573 23 OTHER SUPPLEMENTARY INFORMATION N c0 N O V O V N O N LO O O N 00 m M O I- O N N V O Cl) (D O N O N (D O O O O O O t` LO N O ' O N N �_ I� N a) O N 00 00 a)O I- a) LO N LO 00 O V V LO O V o0 O O V O o0 (O O ►- 00 00 M (D N N LO LO V LO EA EA N r O •i+ 'IT (D O 00 O (D 'IT ' V ' ' V ' O y N O P'i V 6i Ln I� t` t`a) I` O O 00 — O LO N N C I- 00 N LO 00 E E O U7 EA u LO LO LOO LO V V V ate+ M ' ' M (0 (0 LO 00 LO ' LO ' ' LO ' O O O (D N 00 (7 00 00 N (0 M N N N N E I- t` V a0 M V V V 7 V V N V (7 ~ U7 EA O N O O Cl) (0 O V O O M Q Cl) (0 N O O LO O LO O M O t` LO N O i N N N I- t` a) a) (D O O Cl) o0 00 O cc y N a) LO O 00 O N N V V V I� N V Q C (0 V (MN V O M O W F- LN LM M O N N N U > U7 U7 w (n O N M O (M (D (0 LO O LO O O O LO N O I` N I� O O N N O O N N N ' O (D o0 O N M : t` O M LO N ' m i t` N N N_ a) 00 It N O O 00 M r 00 O N (0 a) LO O V N 00 M M I� N M Q O V N V LO O 00 (0 OIt (0 Z C7 t LO cli LO M 6 cli v Z) w (» (» N Z y LO LO LO Cl) N N N O a+ 00 00 (M O V V (7 M M 00 00 LO N N V V N LO LO LO v Il- I` O O O O Z _ C V V Cl) Cl) N00 M Cl) Cl) Cl) C D EA EA O O O a) N M It LO N N 00 00 (0 LO M LO LO LO O M M O M O M O O O as+ O O M 00 i° OM M M M O i O O N LO QG EA EA z O O LO I` a) O O (p M M Il- M M M Q M ' ' V N Il- M ' ' M 2 LO LO O O O Q O 00 00 00 00 a)N O (0 (0 O N A C N U7 U7 Z) Q i J N C LL Q O N w fD to a) LV Z +3 E +°• = w o E o Ln 0 ° U ° Q w a > (n a� 0 0 O aXi E axi H 3 ° z p N o N (n _ > (n > LJL w O; U .00.. (n O ° w 3 72 0 G w U w 01 N w cmc O a`) a� a� a) o S > C m (n E (n aa)) (n > OO t t t CI > (n Z Q w o 0 0 0 ° o o ° N m 0 0 0 ° o m ° o Na m '—' E 0 (n > a) � (n o o E E E E m aO1i O " a°i ° .N a =0 ° N °i o 0 0 0 ° n o U U n E N 3 ° N o ° m O O w w w w m 0 (n (n W Z Cw O N > rn N m a > O °-0 0 0 0 > .� a) a) O °' X ° Z Z 0 o N o m ° ' o m O °� 0 m �? �? �? �? ° 0 m m o E — m w rn rn in 6 m :o � (n w m (n (n (n (n m (n o n n Z c m a) > w - m a O � aa) w m m m m � 0 0 w a>> = U X-U U X X ° U > w w O w IL w MONROE COUNTY, FLORIDA SHERIFF NON-MAJOR SPECIAL REVENUE FUNDS DESCRIPTION The purpose of each non-major special revenue fund in the combining balance sheet and combining statement of revenues, expenditures, and changes in fund balances is described below. Teen Court Fund-This fund accounts for receipts and disbursements pertaining to a program designed to deter juveniles who are becoming involved in crime. Law Enforcement Trust Fund-This fund accounts for expenditures to non-profit organizations to help deter drug use and juvenile delinquency. State Fine and Forfeiture (State Forfeiture) - This fund accounts for the proceeds received primarily from seizures and forfeitures. Contract Administrative Fund - This fund accounts for the administration of contracts between the Sheriff and third parties. Commissary Fund - This fund accounts for receipts and disbursements of inmate telephone commissions, canteen revenues and other inmate programs. Inter-Agency Communications Fund - This fund accounts for revenues and expenditures allocated for radio communications. 25 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30,2020 Law Enforcement Teen Court Trust Fund ASSETS Cash and cash equivalents $ - $ 23 Due from Board of County Commissioners - - Due from other funds - - Due from governmental units 4,099 - Due from others - - Total assets $ 4,099 $ 23 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - Accrued wages and benefits payable - - Due to Board of County Commissioners - - Due to other governmental units - - Due to other funds 4,099 23 Unearned revenues - - Total liabilities 4,099 23 Fund balances, restricted: Inter-agency communication program - - Inmate welfare program - - Farm program - - Fund balances,committed: Contract administration - - Total fund balances - - Total liabilities,deferred inflows of resources and fund balances $ 4,099 $ 23 26 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30,2020 State Contract Forfeiture Administrative Commissary ASSETS Cash and cash equivalents $ 14,267 $ - $ 1,076,046 Due from Board of County Commissioners - - - Due from other funds 23 1,543,706 4,569 Due from governmental units - 148,278 - Due from others - - 19,617 Total assets $ 14,290 $ 1,691,984 $ 1,100,232 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - $ 6,660 Accrued wages and benefits payable - - 10,284 Due to Board of County Commissioners 14,290 284,494 - Due to other governmental units - - 15,959 Due to other funds - 16,722 10,160 Unearned revenues - 99,409 - Totalliabilities 14,290 400,625 43,063 Fund balances, restricted: Inter-agency communication program - - - Inmate welfare program - - 972,757 Farm program - - 84,412 Fund balances,committed: Contract administration - 1,291,359 - Total fund balances - 1,291,359 1,057,169 Total liabilities,deferred inflows of resources and fund balances $ 14,290 $ 1,691,984 $ 1,100,232 27 MONROE COUNTY, FLORIDA SHERIFF COMBINING BALANCE SHEET- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS SEPTEMBER 30,2020 Total Nonmajor Inter-Agency Special Revenue Communications Funds ASSETS Cash and cash equivalents $ 148,419 $ 1,238,755 Due from Board of County Commissioners 16,132 16,132 Due from other funds - 1,548,298 Due from governmental units - 152,377 Due from others 7,163 26,780 Total assets $ 171,714 $ 2,982,342 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 12,244 $ 18,904 Accrued wages and benefits payable - 10,284 Due to Board of County Commissioners - 298,784 Due to other governmental units - 15,959 Due to other funds - 31,004 Unearned revenues - 99,409 Total liabilities 12,244 474,344 Fund balances, restricted: Inter-agency communication program 159,470 159,470 Inmate welfare program - 972,757 Farm program - 84,412 Fund balances,committed: Contract administration - 1,291,359 Total fund balances 159,470 2,507,998 Total liabilities,deferred inflows of resources and fund balances $ 171,714 $ 2,982,342 28 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2020 Law Enforcement Teen Court Trust Fund Revenues: Intergovernmental-BOCC $ - $ 14,500 Intergovernmental-other government units - - Charges for services 44,643 - Fines and forfeitures - - Investment income - - Miscellaneous - - Total revenues 44,643 14,500 Expenditures: Current: Personnel services 65,043 - Operating expenses 2,180 5,500 Capital outlay - 8,000 Aid to other govern men ts/n on-profits - 1,000 Total expenditures 67,223 14,500 Excess of revenues over (under)expenditures (22,580) - Other financing sources(uses): Insurance proceeds - - Transfers(to)/from other funds 3,894 - Transfer(to)/from Board of County Commissioners - - Total other financing sources(uses) 3,894 - Excess of revenues over expenditures and other financing sources(uses) (18,686) - Fund balances, beginning of year 18,686 - Fund balances,end of year $ - $ - 29 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2020 State Contract Forfeiture Administrative Commissary Revenues: Intergovernmental-BOCC $ - $ - $ - Intergovernmental-other government units - 939,461 - Charges for services - 3,706,834 428,524 Fines and forfeitures 15,811 - - Investment income 115 9,285 11,600 Miscellaneous income - - 27,771 Total revenues 15,926 4,655,580 467,895 Expenditures: Current: Personnel services - 4,130,841 190,624 Operating expenses 1,635 332,750 219,622 Capital outlay - 48,223 6,063 Aid to other governments/non-profits - 100,000 - Total expenditures 1,635 4,611,814 416,309 Excess of revenues over(under) expenditures 14,291 43,766 51,586 Other financing sources(uses): Insurance proceeds - - - Transfers(to)/from other funds - 7,695 - Transfer(to)/from Board of County Commissioners (14,291) - - Total other financing sources(uses) (14,291) 7,695 - Excess of revenues over expenditures and other financing sources(uses) - 51,461 51,586 Fund balances, beginning of year - 1,239,898 1,005,583 Fund balances,end of year $ - $ 1,291,359 $ 1,057,169 30 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 2020 Total Nonmajor Inter-Agency Special Revenue Communications Funds Revenues: Intergovernmental-BOCC $ 139,448 $ 153,948 Intergovernmental-other government units - 939,461 Charges for services 21,099 4,201,100 Fines and forfeitures - 15,811 Investment income 3,115 24,115 Miscellaneous income - 27,771 Total revenues 163,662 5,362,206 Expenditures: Current: Personnel services - 4,386,508 Operating expenses 222,008 783,695 Capital outlay 190,030 252,316 Aid to other governments/non-profits - 101,000 Total expenditures 412,038 5,523,519 Excess of revenues over(under) expenditures (248,376) (161,313) Other financing sources(uses): Insurance proceeds 9,475 9,475 Transfers(to)/from other funds - 11,589 Transfer(to)/from Board of County Commissioners - (14,291) Total other financing sources(uses) 9,475 6,773 Excess of revenues over expenditures and other financing sources(uses) (238,901) (154,540) Fund balances, beginning of year 398,371 2,662,538 Fund balances,end of year $ 159,470 $ 2,507,998 31 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL-TEEN COURT FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 55,000 $ 50,000 $ 44,643 $ (5,357) Total revenues 55,000 50,000 44,643 (5,357) Expenditures: Current: Personnel services 70,000 68,000 65,043 2,957 Operating expense 3,000 2,500 2,180 320 Total expenditures 73,000 70,500 67,223 3,277 Excess of revenues over(under)expenditures (18,000) (20,500) (22,580) (2,080) Other financing sources: Transfers(to)/from Board of County Commissioners - - - - Transfers(to)/from other funds - - 3,894 3,894 Total other financing sources - - 3,894 3,894 Excess of revenues over expenditures and other financing sources(uses) (18,000) (20,500) (18,686) 1,814 Fund balances, beginning of year 18,686 18,686 18,686 - Fund balances, end of year $ 686 $ (1,814) $ - $ 1,814 32 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- LAW ENFORCEMENT TRUST FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 28,500 $ 15,000 $ 14,500 $ (500) Total revenues 28,500 15,000 14,500 (500) Expenditures: Current: Operating expenses 5,500 5,500 5,500 - Capital expenses - 8,500 8,000 500 Aid to other governments/non-profits 23,000 1,000 1,000 - Total expenditures 28,500 15,000 14,500 500 Excess of revenues over(under)expenditures - - - - Fund balances, beginning of year - - - - Fund balances, end of year $ - $ - $ - $ - 33 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- STATE FORFEITURE FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Fines and forfeitures $ 14,000 $ 16,500 $ 15,811 $ (689) Investment income 500 500 115 (385) Total revenues 14,500 17,000 15,926 (1,074) Expenditures: Current: Operating expenses 12,000 2,000 1,635 365 Total expenditures 12,000 2,000 1,635 365 Excess of revenues over(under) expenditures 2,500 15,000 14,291 (709) Other financing uses: Transfer(to)/from Board of County Commissioners (2,500) (15,000) (14,291) 709 Total other financing uses (2,500) (15,000) (14,291) 709 Excess of revenues over expenditures and other financing sources(uses) - - - - Fund balances, beginning of year - - - - Fund balances, end of year $ 34 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- CONTRACT ADMINISTRATIVE FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-other governmental units $ 890,000 $ 890,000 $ 939,461 $ 49,461 Charges for services 3,600,000 3,780,000 3,706,834 (73,166) Interest income 10,000 10,000 9,285 (715) Total revenues 4,500,000 4,680,000 4,655,580 (24,420) Expenditures: Current: Personnel 4,120,000 4,145,000 4,130,841 14,159 Operating expenses 400,000 352,000 332,750 19,250 Capital expenses 10,000 50,000 48,223 1,777 Aid to other governments/non-profits - 100,000 100,000 - Total expenditures 4,530,000 4,647,000 4,611,814 35,186 Excess of revenues over(under) expenditures (30,000) 33,000 43,766 10,766 Other financing sources(uses) Transfers(to)/from other funds - - 7,695 7,695 Transfers(to)/from other governments (34,000) - - - Total other financing sources(uses) (34,000) - 7,695 7,695 Excess of revenues over expenditures and other financing sources(uses) (64,000) 33,000 51,461 18,461 Fund balances, beginning of year 1,239,898 1,239,898 1,239,898 - Fund balances, end of year $ 1,175,898 $ 1,272,898 $ 1,291,359 $ 18,461 35 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- COMMISSARY FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 600,000 $ 445,000 $ 428,524 $ (16,476) Investment income 6,000 6,000 11,600 5,600 Miscellaneous income 24,000 24,000 27,771 3,771 Total revenues 630,000 475,000 467,895 (7,105) Expenditures: Current: Personnel expenses 180,000 200,000 190,624 9,376 Operating expenses 250,000 230,000 219,622 10,378 Capital outlay 2,500 8,500 6,063 2,437 Total expenditures 432,500 438,500 416,309 22,191 Excess of revenues over(under) expenditures 197,500 36,500 51,586 15,086 Fund balances, beginning of year 1,005,583 1,005,583 1,005,583 - Fund balances, end of year $ 1,203,083 $ 1,042,083 $ 1,057,169 $ 15,086 36 MONROE COUNTY, FLORIDA SHERIFF SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL- INTER-AGENCY COMMUNICATIONS FUND YEAR ENDED SEPTEMBER 30, 2020 Variance With Final Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-BOCC $ 140,000 $ 145,000 $ 139,448 $ (5,552) Charges for services 35,000 35,000 21,099 (13,901) Investment income 5,000 5,000 3,115 (1,885) Total revenues 180,000 185,000 163,662 (21,338) Expenditures: Current: Operating expense 175,000 245,000 222,008 22,992 Capital outlay - 195,000 190,030 4,970 Total expenditures 175,000 440,000 412,038 27,962 Excess of revenues over(under) expenditures 5,000 (255,000) (248,376) 6,624 Other financing sources: Insurance proceeds - - 9,475 9,475 Total other financing sources - - 9,475 9,475 Excess of revenues and other financing sources (uses)over(under)expenditures 5,000 (255,000) (238,901) 16,099 Fund balances, beginning of year 398,371 398,371 398,371 - Fund balances, end of year $ 403,371 $ 143,371 $ 159,470 $ 16,099 37 MONROE COUNTY, FLORIDA SHERIFF AGENCY FUNDS DESCRIPTION The purpose of each agency fund in the combining financial statement on the following page is described below. Civil Process Fund-This fund accounts for receipt and disbursement of funds received for the service of papers by the Sheriff. Bonds Fund-This fund accounts for receipts and disbursements of the Bonds Fund. Inmate Fund- This fund accounts for receipts and disbursements of the monies held by the Sheriff on behalf of incarcerated inmates. 38 MONROE COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES ALL AGENCY FUNDS SEPTEMBER 30, 2020 October 1, September 30, 2019 Additions Deductions 2020 Civil Process Assets Cash and cash equivalents $ 5,305 $ 31,623 $ 33,543 $ 3,385 Total assets $ 5,305 $ 31,623 $ 33,543 $ 3,385 Liabilities Due to Board of County Commissioners $ 5,305 $ 29,020 $ 30,940 $ 3,385 Total liabilities $ 5,305 $ 29,020 $ 30,940 $ 3,385 Bonds Assets Cash and cash equivalents $ 709,062 $ 1,251,894 $ 459,142 $ 1,501,814 Total assets $ 709,062 $ 1,251,894 $ 459,142 $ 1,501,814 Liabilities Due to individuals $ 709,062 $ 1,251,894 $ 459,142 $ 1,501,814 Total liabilities $ 709,062 $ 1,251,894 $ 459,142 $ 1,501,814 Inmate Assets Cash and cash equivalents $ 41,632 $ 818,453 $ 817,961 $ 42,124 Due from others(TouchPay) 5,639 1,040,651 1,041,963 4,327 Total assets $ 47,271 $ 1,859,104 $ 1,859,924 $ 46,451 Liabilities Accounts payable $ 22,827 $ 829,595 $ 837,960 $ 14,462 Due to individuals 24,444 922,232 914,687 31,989 Total liabilities $ 47,271 $ 1,751,827 $ 1,752,647 $ 46,451 Total All Aciency Funds Assets Cash and cash equivalents $ 755,999 $ 2,101,970 $ 1,310,646 $ 1,547,323 Due from others 5,639 1,040,651 1,041,963 4,327 Total assets $ 761,638 $ 3,142,621 $ 2,352,609 $ 1,551,650 Liabilities Accounts payable $ 22,827 $ 829,595 $ 837,960 $ 14,462 Due to Board of County Commissioners 5,305 29,020 30,940 3,385 Due to individuals 733,506 2,174,126 1,373,829 1,533,803 Total liabilities $ 761,638 $ 3,032,741 $ 2,242,729 $ 1,551,650 39 SUPPLEMENTARY REPORTS Cherry rl"' Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Sheriff (the "Sheriff') as of and for the year ended September 30, 2020, and the related notes to the financial statements, and we have issued our report thereon dated February 3, 2021 for the purpose of compliance with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriffs internal control over financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriffs internal control. Accordingly, we do not express an opinion on the effectiveness of the Sheriffs internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriffs financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Chmi 5acLc� t-z--P Tampa, Florida February 3, 2021 41 Cherry rl- Independent Auditor's Management Letter To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida Report on the Financial Statements We have audited the financial statements of the Monroe County, Florida Sheriff(the "Sheriff'), as of and for the year ended September 30, 2020, and we have issued our report thereon dated February 3, 2021. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Report of Independent Accountant on Compliance with Local Government Investment Policies regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 3, 2021, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The Sheriff is a separately elected county official established pursuant to the Constitution of the state of Florida. There are no component units related to the Sheriff. Financial Management Section 10.443(1)(1)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter The purpose of this management letter is to communicate certain matters prescribed in Chapter 10.550, Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose. Chmi 5acLc� t-z--P Tampa, Florida February 3, 2021 43 Cherry rl- Report of Independent Accountant on Compliance with Local Government Investment Policies To the Honorable Rick Ramsay, Sheriff of Monroe County, Florida We have examined the Monroe County, Florida Sheriff's (the "Sheriff's"), compliance with local government investment policy requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2020. Management of the Sheriff is responsible for the Sheriffs compliance with the specified requirements. Our responsibility is to express an opinion on the Sheriffs compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Sheriff complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Sheriff complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriffs compliance with the specified requirements. In our opinion, the Sheriff complied, in all material respects, with the local investment policy requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2020. The purpose of this report is to comply with the audit requirements of Section 218.415, Florida Statutes, and Rules of the Auditor General. Cher 5acLc� t-z--P Tampa, Florida February 3, 2021