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Fiscal Year 2020 i MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT FINANCIAL STATEMENTS As of and for the Year Ended September 30, 2020 And Reports of Independent Auditor i 1' I , , Cherryskean ,"?Not } MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR....................................................................................... 1-2 FINANCIAL STATEMENTS Balance Sheet-Governmental Funds.................................................................................................................3 Statement of Revenues, Expenditures and Changes in Fund Balance -Governmental Funds............................................................................................4 Statement of Fiduciary Net Position - AgencyFund.....................................................................................................................................................5 Notes to Financial Statements....................................................................................................................... 6-12 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues and Expenditures— Budget to Actual -General Fund ....................................................................................................................13 Schedule of Revenues and Expenditures— Budget to Actual—Special Revenue Court Related Fund..............................................................................14 Schedule of Revenues and Expenditures— Budget to Actual—Special Revenue Records Modernization Fund...............................................................15 SUPPLEMENTARY INFORMATION Schedule of Changes in Assets and Liabilities—Agency Fund.........................................................................16 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.......................................... 17-18 Independent Auditor's Management Letter.................................................................................................. 19-20 Report of Independent Accountant on Compliance with Local Government Investment Policies, Article V Requirements and Depository Requirements of Sections 218.415, 28.35, 28.36 and 61.181, Florida Statutes....................................................................21 Cherry rl- Report of Independent Auditor To the Honorable Kevin Madok Clerk of the Circuit Court 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 Clerk of the Circuit Court (the "Clerk") as of and for the year ended September 30, 2020, and the related notes to the 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 from 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 Clerk 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 the Rules of the Auditor General of the State of Florida. In conformity 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 Clerk. 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. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk's financial statements. The accompanying 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 accompanying 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 auditing standards generally accepted in the United States of America. In our opinion, the 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 11, 2021 on our consideration of the Clerk's 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 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 Clerk's internal control over financial reporting and compliance. Ghmi 5 c crt LLP Tampa, Florida February 11, 2021 2 FINANCIAL STATEMENTS MONROE COUNTY, FLORIDA CLERK OF TH E CI RCU IT COU RT BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2020 Major Funds Court Records General Related Modernization Fund Fund Fund Totals ASSETS Assets: Cash $ 1,245,915 $ 1,318,559 $ 2,815,192 $ 5,379,666 Due from other governmental agencies 801 15,214 - 16,015 Due from Board of County Commissioners 290 1,210 - 1,500 Due from others 321 - - 321 Total assets $ 1,247,327 $ 1,334,983 $ 2,815,192 $ 5,397,502 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 511,920 $ 212,280 $ 1,040 $ 725,240 Due to other governmental agencies 66,586 108,740 - 175,326 Due to Board of County Commissioners 668,821 1,013,963 - 1,682,784 Total liabilities 1,247,327 1,334,983 1,040 2,583,350 Fund Balances: Restricted - - 2,814,152 2,814,152 Total liabilities,deferred inflow of resources and fund balances $ 1,247,327 $ 1,334,983 $ 2,815,192 $ 5,397,502 See notes to financial statements. 3 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2020 Major Funds Court Records General Related Modernization Fund Fund Fund Totals Revenues: Intergovernmental-Other $ 273,535 $ 1,130,926 $ - $ 1,404,461 Intergovernmental-Board of County Commissioners 5,319,597 1,402,351 - 6,721,948 Charges for services 856,274 727,582 323,935 1,907,791 Fines and forfeitures - 1,607,083 - 1,607,083 Interest income 16,935 14,538 22,977 54,450 Miscellaneous 3,010 51,468 - 54,478 Total revenues 6,469,351 4,933,948 346,912 11,750,211 Expenditures: Current: General government: Salaries and benefits 3,272,844 - - 3,272,844 Operating 644,063 - - 644,063 Court related: Salaries and benefits - 3,384,040 - 3,384,040 Operating - 446,420 5,785 452,205 Capital outlay 1,885,873 20,244 - 1,906,117 Total expenditures 5,802,780 3,850,704 5,785 9,659,269 Excess of revenues over expenditures 666,571 1,083,244 341,127 2,090,942 Other financing(uses): Transfer to Board of County Commissioners (666,571) (1,012,629) - (1,679,200) Transfer to Florida Department of Revenue - (70,615) - (70,615) Total other financing sources(uses) (666,571) (1,083,244) - (1,749,815) Net change in fund balances - - 341,127 341,127 Fund balances,beginning of year - - 2,473,025 2,473,025 Fund balances,end of year $ - $ - $ 2,814,152 $ 2,814,152 See notes to financial statements. 4 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT STATEMENT OF FIDUCIARY NET POSITION AGENCY FUND SEPTEMBER 30, 2020 Assets: Cash $ 6,995,459 Due from other governmental agencies 10,185 Due from the Board of County Commissioners 32,606 Due from others 25,242 Total assets $ 7,063,492 Liabilities: Due to others $ 4,531,564 Due to other governmental agencies 2,420,967 Due to Board of County Commissioners 110,961 Total liabilities $ 7,063,492 See notes to financial statements. 5 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 1—Summary of significant accounting policies Reporting Entity — The Monroe County, Florida Clerk of the Circuit Court (the "Clerk") is a separately elected county official established pursuant to the Constitution of the State of Florida. The Clerk's 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 Clerk have been prepared in accordance with the accounting principles and reporting guidelines established by the Governmental Accounting Standards Board ("GASB"). Entity status for financial reporting purposes is governed by GASB Statement No. 14, as amended. Although the Clerk's Office is operationally autonomous and legally separate from the Board of County Commissioners (the "Board"), 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 Clerk is reported as a part of the primary government of the County. Description of Funds—The accounting records are organized for reporting purposes as three governmental funds and a fiduciary fund. General Fund— The General Fund is used to account for all revenues and expenditures applicable to the general operations of the Clerk. Court Related Fund— A Special Revenue Fund is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.The Court Related Fund is a special revenue fund created to account for and report State and local funding restricted for the expenditure of court functions as mandated by Section 28.37, Florida Statutes.Any excess funding over actual expenditures is returned to either the Florida Department of Revenue (the "DOR") or the Board, depending on where funding originated. Records Modernization Fund—The Records Modernization Fund is a special revenue fund used to account for and report recording fees restricted for records modernization and court technology as specified in Florida Statutes 28.24(12)(d)and (e). Fiduciary Fund—The Fiduciary Fund of the Clerk is an agency fund,which is used to account for assets held by the Clerk as agent. Measurement Focus, Basis of Accounting and Financial Statement Presentation — The Clerk's financial statements are prepared for the purpose of complying with Florida Statute 218.39(2), and Chapter 10.550, Rules of the Auditor General, which require the Clerk to only present fund financial statements. The General Fund and the Special Revenue Funds are governmental funds which use the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Clerk considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, to be available and thus recognizes them as revenues of the current year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences and claims and judgments are recorded only when payment is due. The Clerk reports the General Fund, Court Related Fund and the Records Modernization Fund as major governmental funds and the Agency Fund as a fiduciary fund type. The Agency Fund is custodial in nature and does not involve measurement of results of operations. 6 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 1—Summary of significant accounting policies (continued) The Clerk's operations are segregated between court-related and non-court-related activities as defined by Article V of the Florida Constitution. Any excess of court-related revenue over court-related expenditures as of September 30 each year is paid to the DOR's Clerks'Trust Fund. The Board provides non-court-related revenue to both the Clerk's General Fund and Court-Related fund.Any excess of non-court related revenue over non-court related expenditures is reflected as a liability to the Board in the respective fund at fiscal year-end. Fund Balances Presentation—The Records Modernization Fund balance of the governmental funds is classified as restricted. 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. Budgetary Requirements — Expenditures are controlled by appropriations in accordance with the budgetary requirements set forth in the Florida Statutes. The budget is prepared on a basis consistent with generally accepted accounting principles. The Florida Clerks of Court Operations Corporation (CCOC)approves only the budget for the Clerk's court-related activities for the twelve-months ended September 30, 2020. The non-court-related budget is the Clerk's General Fund budget and is approved by the Board. Cash — The Clerk's cash consists of demand deposits insured by the Federal Deposit Insurance Corporation (FDIC) and cash on hand for operations. Capital Assets — Tangible and intangible personal property used by the Clerk's operations are recorded in governmental fund types as expenditures at the time assets are received and a liability is incurred. Purchased assets are capitalized at historical cost and reported in the Monroe County Comprehensive Annual Financial Report ("CAFR") government-wide financial statements. The Clerk maintains custodial responsibility for the capital assets used by the Clerk's offices. In addition, the Board provides administrative office space and certain other expenditures used by the Clerk at no charge. Compensated Absences—The Clerk permits employees to accumulate earned but unused vacation and sick pay benefits. The Clerk is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation for compensated absences is accrued and reported in the Monroe County CAFR's government-wide financial statements. A summary of activity for the Clerk's compensated absences obligation is as follows: Balance, October 1, 2019 $ 697,315 Earned 18,717 Used (33,773) Balance, September 30, 2020 $ 682,259 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. Subsequent Events—The Clerk has evaluated subsequent events through February 11, 2021, in connection with the preparation of these financial statements,which is the date the financial statements were available to be issued. 7 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 2—Deposits The Clerk follows Florida Statutes for its investment policy,which authorizes investments in certificates of deposit, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, and obligations of the U.S. Government and government agencies unconditionally guaranteed by the U.S. Government. The Clerk's deposits include $12,373,625 in interest-bearing and non-interest bearing demand deposits at September 30, 2020, which are insured by the Federal Deposit Insurance Corporation 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 on hand amounted to $1,500. Note 3—Fund balance presentation The restrictions placed on Clerk Records Modernization fund balance are described as follows: Public Records Modernization Trust— Florida Statute 28.24(12)(d) requires the collection of an additional service charge to be paid to the Clerk to be used exclusively for equipment, maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the Clerk's Office. Public Records Court Technology Trust — Florida Statute 28.24(12)(e)(1) requires the collection of an additional service charge to be paid to the Clerk to be used exclusively for the operation and support of an integrated computer system for the judicial agencies and to support the operations and maintenance of the state court system. Records Modernization restricted fund balances are as follows: Public Records Modernization Trust $ 991,713 Public Records Court Technology 1,822,439 Restricted Fund Balance $ 2,814,152 Note 4—Retirement plans Florida Retirement System Plan Description—The Clerk's employees participate in the Florida Retirement System (the "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 (the "HIS Plan"). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (the "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. 8 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 4—Retirement plans (continued) 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. Substantial changes were made to the Pension Plan during fiscal year 2011, affecting new members enrolled on or after July 1, 2011 by extending the vesting requirement to eight years of credited service and increasing normal retirement to age 65 or 33 years of service regardless of age. Also, the final average compensation for these members is based on the eight highest years of salary. 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. 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 0.06% of payroll and by forfeited benefits of plan members. 9 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 4—Retirement plans (continued) The Clerk recognizes pension expenditures in an amount equal to amounts paid to the Pension Plan, the HIS Plan, and the defined contribution plan, amounting to $436,239, $55,769, and $78,925, respectively, for the fiscal year ended September 30, 2020. The Clerk's 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 the HIS Plan, amounted to $119,478 and $18,133, respectively. The Clerk 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 No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68. Funding Policy—All enrolled members of the FRS Pension Plan are required to contribute 3.0%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- 8.47% and 10.00%; county elected officers- 48.82% and 49.18%; senior management-25.41% and 27.29%; and DROP participants- 14.60%and 16.98%. During the fiscal year ended September 30, 2020, the Clerk contributed to the plan an amount equal to 12.02%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. That report may be viewed on the Florida Department of Management Services website located at www.dms.Myflorida.com/workforce operations/retirement publications. Note 5—Other postemployment benefits plan (the "OPEB Plan") In addition to the pension benefits described in Note 4, the Clerk 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 Postemployment 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. 10 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 5—Other postemployment benefits plan (continued) Eligibility for postemployment 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. Contribution as Percentage of Annual Actuarial Rate0) Plan Years of Service with Monroe County Year 25+ 20-24 10-19 2018 HIS(2) 17% 18% 2019 HIS 18% 26% 2020 HIS 20% 34% 2021 HIS 22% 42% 2022 &Thereafter HIS 25% 50% (1) The new retiree contributions began a five-year phased-in approach beginning January 1,2018. (2) Participation in the Plan is at a cost equal to the FRS Health Insurance Subsidy (HIS)for ten years of service (currently $5 per month for each year of service credit at retirement with a minimum HIS payment of$30 and a maximum HIS payment of$150 per month). 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 Clerk 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 $269,568 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. 11 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2020 Note 6—Risk management The Clerk 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 Clerk 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 Clerk makes payments to the Workers'Compensation, Group Insurance, and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. Note 7—Lease commitments The Clerk leases various office equipment under cancelable arrangements accounted for as operating leases. Total lease expenditures were $45,930 for the year ended September 30, 2020. The following is a schedule of minimum future rent obligations under non-cancelable leases with terms in excess of one year: 2021 $ 11,402 2022 4,847 2023 4,061 Total $ 20,310 Note 8—Litigation The Clerk is a party from time to time in various lawsuits and other claims incidental to the ordinary course of its operation, some of which are covered by the Board's self-insurance program. While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on the Clerk's financial position. Note 9—Economic Contingencies 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. 12 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET TO ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30,2020 General Fund Variance Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-Other $ $ 268,069 $ 273,535 $ 5,466 Intergovernmental-Board of County Commissioners 3,819,597 5,319,597 5,319,597 - Charges for services 669,100 669,100 856,274 187,174 Interest income 29,600 29,600 16,935 (12,665) Miscellaneous 1,300 1,300 3,010 1,710 Total revenues 4,519,597 6,287,666 6,469,351 181,685 Expenditures: Current: General government: Clerk recording 738,700 643,000 585,136 57,864 Clerk information systems 798,597 715,397 712,941 2,456 Clerk finance 2,496,450 4,119,450 3,841,510 277,940 Internal audit 408,100 412,500 356,123 56,377 Non-court records management 77,750 129,250 39,689 89,561 CARES reimbursement - 268,069 267,381 688 Total expenditures 4,519,597 6,287,666 5,802,780 484,886 Excess of revenues over expenditures - - 666,571 666,571 Other financing(uses): Transfer to Board of County Commissioners (666,571) (666,571) Total other financing sources and uses (666,571) (666,571) Net change in fund balance Fund balance,beginning of year Fund balance,end of year $ $ $ $ 13 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET TO ACTUAL SPECIAL REVENUE COURT RELATED FUND YEAR ENDED SEPTEMBER 30,2020 Special Revenue Court Related Fund Variance Original Final Positive Budget Budget Actual (Negative) Revenues: Intergovernmental-Other $ 1,103,029 $ 1,179,877 $ 1,130,926 $ (48,951) Intergovernmental-Board of County Commissioners 1,402,351 1,402,351 1,402,351 Charges for services 1,132,880 786,418 727,582 (58,836) Fines and forfeitures 1,569,405 1,363,411 1,607,083 243,672 Interest income 50,000 37,500 14,538 (22,962) Miscellaneous income 13 10 51,468 51,458 Total revenues 5,257,678 4,769,567 4,933,948 164,381 Expenditures: Current: Court related: Clerk administration 963,631 975,406 570,328 405,078 Clerk records management 163,067 99,550 89,603 9,947 Clerk jury management 180,800 160,650 119,038 41,612 Clerk circuit court criminal 882,950 704,861 613,316 91,545 Clerk circuit court civil 440,550 394,180 378,680 15,500 Clerk court information systems 570,175 524,900 455,020 69,880 Clerk circuit court family 137,505 154,205 140,899 13,306 Clerk circuit court juvenile 170,980 146,555 128,480 18,075 Clerk circuit court probate 107,000 115,750 95,568 20,182 Clerk county court criminal 565,120 577,145 492,388 84,757 Clerk county court civil 245,100 252,575 208,358 44,217 Clerk county court traffic 830,800 663,790 559,026 104,764 Total expenditures 5,257,678 4,769,567 3,850,704 918,863 Excess of revenues over expenditures - - 1,083,244 1,083,244 Other financing(uses): Transfer to Board of County Commissioners (1,012,629) (1,012,629) Transfer to Florida Department of Revenue (70,615) (70,615) Total other financing sources and uses (1,083,244) (1,083,244) Net change in fund balance Fund balance,beginning of year Fund balance,end of year $ $ $ $ 14 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT SCHEDULE OF REVENUES AND EXPENDITURES- BUDGET TO ACTUAL SPECIAL REVENUE RECORDS MODERNIZATION FUND YEAR ENDED SEPTEMBER 30,2020 Special Revenue Records Modernization Fund Variance Original Final Positive Budget Budget Actual (Negative) Revenues: Charges for services $ 285,000 $ 285,000 $ 323,935 $ 38,935 Interest income 35,000 35,000 22,977 (12,023) Total revenues 320,000 320,000 346,912 26,912 Expenditures: Current: Modernization trust 250,000 250,000 5,785 244,215 Excess of revenues(under)expenditures 70,000 70,000 341,127 271,127 Net change in fund balance 70,000 70,000 341,127 271,127 Fund balance, beginning of year - - 2,473,025 2,473,025 Fund balance,end of year $ 70,000 $ 70,000 $ 2,814,152 $ 2,744,152 15 SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES AGENCYFUND YEAR ENDED SEPTEMBER 30,2020 Balance Balance October 1,2019 Additions Deductions September 30,2020 Assets: Cash $ 5,471,357 $ 45,158,471 $ 43,634,369 $ 6,995,459 Due from other governmental agencies 6,155 101,848 97,818 10,185 Due from Board of County Commissioners 57,774 32,606 57,774 32,606 Due from others 16,969 294,104 285,831 25,242 Due from other funds 8,309 - 8,309 - Total assets $ 5,560,564 $ 45,587,029 $ 44,084,101 $ 7,063,492 Liabilities: Due to other governmental agencies $ 1,229,493 $ 38,977,732 $ 37,786,258 $ 2,420,967 Due to others 4,240,655 2,279,427 1,988,518 4,531,564 Due to Board of County Commissioners 90,416 131,091 110,546 110,961 Due to other funds - 4,198,779 4,198,779 - Total liabilities $ 5,560,564 $ 45,587,029 $ 44,084,101 $ 7,063,492 16 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 Kevin Madok Clerk of the Circuit Court of Monroe County, Florida We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the 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 Clerk of the Circuit Court (the "Clerk") as of and for the year ended September 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated February 11, 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 Clerk's internal control over financial reporting ("internal control") as a basis for designing the 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 Clerk's internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk's 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 of the Clerk's financial statements 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 the 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 Clerk's financial statements are free from 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 Clerk'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 Clerk's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Chmi 5 c crt LLP Tampa, Florida February 11, 2021 18 Cherry rl- Independent Auditor's Management Letter To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida Report on the Financial Statements We have audited the financial statements of the Monroe County, Florida Clerk of the Circuit Court (the "Clerk"), as of and for the year ended September 30, 2020 and have issued our report thereon dated February 11, 2021. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; 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,Article V Requirements, and Depository Requirements of Sections 218.415, 28.35, 28.36, and 61.181, Florida Statutes, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 11, 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 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 this management letter, unless disclosed in the notes to the financial statements. The Clerk is a separately elected county official established pursuant to the Constitution of the state of Florida.There are no component units related to the Clerk. Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate 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 communicate 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 by Chapter 10.550, Rules of the Auditor General.Accordingly, this management letter is not suitable for any other purpose. Chmi 5 c crt LLP Tampa, Florida February 11, 2021 20 Cherry rl- Report of Independent Accountant on Compliance with Local Government Investment Policies, Article V Requirements and Depository Requirements of Sections 218.415, 28.35, 28.36, and 61.181, Florida Statutes To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida We have examined the Monroe County, Florida Clerk of the Circuit Court's (the "Clerk") compliance with the local government investment policy requirements of Section 218.415, Florida Statutes, Article V requirements of Sections 28.35 and 28.36, Florida Statutes, and requirements of Section 61.181, Florida Statutes, for the year ended September 30, 2020. Management of the Clerk is responsible for the Clerk's compliance with those requirements. Our responsibility is to express an opinion on the Clerk's compliance 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 Clerk complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Clerk 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 Clerk's compliance with the specified requirements. In our opinion, the Clerk complied, in all material respects, with the local investment policy requirements of Section 218.415, Florida Statutes, Article V requirements of Sections 28.35 and 28.36, Florida Statutes, and requirements of Section 61.181, 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, Article V requirements of Sections 28.35 and 28.36, Florida Statutes, requirements of Section 61.181, Florida Statutes, and Rules of the Auditor General. Ghmi 5 c crt LLP Tampa, Florida February 11, 2021