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Fiscal Year 2005 MONROE COUNTY, FLORIDA SHERIFF Financial Statements For the Year Ended September 30, 2005 MONROE COUNTY, FLORIDA SHERIFF Table of Contents Rao Independent Auditors' Report_._-------- _ -------------------------------------------------------------------------------------- 2 - 3 BASIC FINANCIAL STATEMENTS Balance Sheet- Governmental Funds 4 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 6 Sbabamen{ofFiduciaryAsoetsendLiabi|itiea -AgencyFunds..___ ----------------------------------------- 8 Notes tV Financial Statements 7- 12 REQUIRED SUPPLEMENTARY INFORMATION Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual -General Fund--------------------------- ------------------------------------------ 13 Schedule of Revenues, Expenditures and Changes inFund Balances - Budget and Actual —Major Special Revenue Funds--------------------------------------------- 14 - 17 OTHER SUPPLEMENTARY INFORMATION Combining Statement of General Fund by Service Area------------ ---------------------------------------------- 18 Non-Major Special Revenue Funds Description----------------------------------------------------------------------- 19 CVmbiningBo|anoeSheet— Governmental Funds - Special Revenue Funds---------------------------------------------------- ------------------------------------------------2O -22 Combining Statement of Revenues, Expenditures and Changes inFund Balances— Non-Major Governmental Funds—Special Revenue Funds--------------------_------23-25 Schedule of Revenues, Expenditures and Changes in Fund Ba|anoee— Budget and Actual—Non-Major Special Revenue Funds---------------------------------28-33 AgencyFunds Description--------------------------------------- --------------------------- -------------------------- -------- 34 Combining Statement of Changes in Fiduciary Assets andLkabi|itiee- Al\AgenoyFunds-________________________________________._________ 35 SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based Vnan Audit of Financial Statements Performed in Accordance with Government Auditing Standards------------------------------------------- ------------38-37 r IM INDEPENDENT AUDITORS' REPORT To the Honorable Richard Roth, Sheriff of Monroe County, Florida 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, 2005, which collectively comprise the Sheriffs basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Sheriffs management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. As discussed in Note 1, the accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local Government Entity Audits, and are not intended to be a complete presentation of the financial position of Monroe County, Florida, and the results of its operations and the cash flows of its proprietary funds in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Monroe County, Florida Sheriff as of September 30, 2005, and the respective changes in financial position thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated February 8, 2006 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 2 The budgetary comparison schedules on pages 13 through 17 are not a required part oft e basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures„ which consisted primarily of inquiries of management regarding m7raethods of measurement and presentation of the required supplementary information„ However, we didnot audit the information and we express no opinion on it., Our audit was conducted for the purpose of fo ing opinions on the financial statements that collectively comprise the Sheriffs basic financial statements. The other supplementary information listed on the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. The other supplementary information has been subjected to the auditing procedures applied by us in theaudit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of management and applicable state agencies, and is not intended to be and should not be used by anyone other than those specified parties.. go do • • West Palm Beach, Florida February 6, 2006 3 BASIC FINANCIAL STATEMENTS Lf) It CC) 'a C14 ONMIltomo m to N Pam- 'll ' N Id Cad all UZC7'i n "q' 0 "It?1- 0" co Cc CO d Pam- m rte) C"J Cd C"w7 T- COI C�k 0 C4 CO t'J Q Q 0) C) co d m a CN a) CD M u0 C® e^ ° Co. 0 CD C a- Cl m CD t- 0 't 1* Nr a a N a a u a n N o o acq 0 is v �t 69 0) CD 0 0 co 0) a u a a n a coCo cl) 0 d�a 0) 0 V _ ILA CD C85 0 m cc CD (D n c. U. 43 '� COI CCU C > U. 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C() � 0 > 6D �' U) 6 was �De saw a sw w cD 00 ED > CD CL "moms 42 ex 4 ti om u•— 0 MONROE COUNTY, FLORIDA SHERIFF Statement of Fiduciary Assets and Liabilitbas Agency Funds September 30, 205 Civil I Process Bonds Inmate LgLnc Assets Cash and cash equivalents 30,700 $ 533,634 $ 74,663 $ 638,997 Total assets $ 30,700 $ 533,634 74,663 $ 638,997 Liabilities Due to Board of County Commr ssi nars $ 6,101 - - $ 6,101 Due to individuals 24,599 533,634 74,663 632,896 Total liabilibes 30,700 $ 533,634 $ 74,663 $ 638,997 The notes to the financial statements are an integral part of this statement. MNRE COUNTY, FLORIDA SHERIFF Notes to Financial Statements Year Ended September 30, 2005 Note 1 - Summary of significant accounting policies Reporting entity - The Monroe County, Florida Sheriff (the "Sheriff') is a separately elected county official established pursuant to the Constitution of the State of Florida. The Sheriff'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. Entity status for financial reporting purposes is governed by Statement No. 14. Governmental Accounting Standards Board (GASB). Although the Sheriff's Office is operationally autonomous from the County, it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, the 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 - Local Governmental Entity Audits, which require 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. 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. Special Revenue Funds account for the proceeds and uses of specific revenue sources that are legally restricted or committed to expenditures for specific purposes. 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 four Special Revenue Funds as major funds: HIDTA Grants, Federal Forfeiture, Shared Asset Forfeiture, and Airport Services. The HIDTA Grants Fund accounts for the revenues and expenditures related to the ONDCP grants. 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 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 a community board. The Airport Services Fund accounts for expenditures related to providing security at airports throughout the County. Transfers - The Sheriff transfers funds to administer certain Special Revenue Fund programs. In addition, the extent to which General Fund and Fine and Forfeiture Fund revenues exceed expenditures is reflected as transfers out to the Board of County Commissioners. 7 MONROE COUNTY, FLORIDA SHERIFF Notes to Financial Statements Year Ended September 30, 2005 Note I - Summary of significant accounting policies (continued) Budgetary requirements - Expenditures are controlled by appropriations in accordance with the budget requirements set forth in the Florida Statutes. Budgets are administered for all funds except for the Teen Court Fund and are prepared on a basis consistent with accounting principles generally accepted in the United States of America, Cash and cash equivalents ® 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"), a 2a7-like investment pool stated at share price, which is substantially the same as fair value. 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 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. Compensated absences - The Sheriffs 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 oft 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. to 2 - Deposits and investments Cash and cash equivalents at September 30, 2005 consist oft e following: Type Credit Quality Rating it Value Demand and time deposits NIA $ 11,444,280 SBA Unrated 133,472 $ 11,577,752 Demand and time deposits are fully insured byte Federal Deposit Insurance Corporation or are covered byte 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® Florida Statutes and the Sheriffs investment policy authorize investments in certificates of deposit, savings accounts, repurchase agreements, Local Government Surplus Funds Trust Funds, and obligations of the U.S. government and government agencies unconditionally guaranteed by the U.S. government. MONROE COUNTY, FLORIDA SHERIFF of to Financial Statements Year Ended September 30, 2005 Note 3 ® Capital assets A summary of changes in the Sheriff's capital assets, presented in the government-wide financial statements of the County, is as folllows- Balance Balance 10101/2004 Additions Deductions 09130/2005 Buildings and improvements $ 2,405,224 $ 42,864 $ 7,986 $ 2,44,0,102 Equipment 24,850,118 3,184,150 2,611,732 25,422,536 Construction in process 1,007,057 29,825 1,007,057 29,825 $ 28,262,399 $3,256,839 $3,626,775 $ 27,892,463 AcCUMUlated depreciation $ 8,231,094 $3,154,035 $1,332,510 $ 10,052,619 of 4® Long-term debt The following is a summary of changes in the Sheriffs long-term debt for the year ended September 30, 2005, presented in the government-wide financial statements of the County; Capital Lease Compensated Obligations Absences Total Long-term debt, beginning of year $ 192,419 $ 2,822,153 $ 3,014,572 Additions 22,995 238,682 261,677 Reductions 190,0061 (90,006) Long-term debt, end of year $ 125,408 $ 3,060,835 $ 3,186,243 9 MONROE COUNTY, FLORIDA SHERIFF Notes to Financial Statements Year Ended September 30, 2005 of 4 - Long-term debt (continued) The Sheriff has entered into various capital lease obligations for equipment purchases that require monthly, quarterly and bi-annual monthly payments ranging from $816 to $9,915. The future minimum payments under the capitalized leases consist of the following at September 30, 2005: Fiscal year ending September 30, 2006 $ 107,217 2007 27,011 2008 2,780 Total minimum payments 137,008 Amounts representing interest (11,600) Present value of net minimum lease payments $ 125,408 As of September 30, 2005, $510,398 of the Sheriffs equipment under capital leases are included as capital assets in the County's government-wide financial statements. Note 5- Retirement plan Plan description - Substantially all full-time Sheriff employees participate in the Florida Retirement System ("FRS"), a multiple-employer, cost-sharing public retirement system administered by the Florida Department of Administration. As a general rule, membership in 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. FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida Legislature. Benefits are computed based on age, average final compensation, and service credit. Regular class employees who retire at or after age 62 with 6 years of credited service or 30 years or service regardless of age are entitled to a retirement benefit payable monthly for life equal to 1.6% percent of their final average compensation for each year of credited service. Vested employees with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special risk class employees (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with 6 years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation for each year of credited service. A post-employment health insurance subsidy is also provided to eligible retired employees through the FRS in accordance with Florida Statutes. 10 M NROE COUNTY, FLORIDA SHERIFF Notes to Financial Statements Year Ended September 30, 2005 Note 5 - Retirement plan (continued) In addition to the above benefits, the FRS administers a Deferred Retirement Option Program ("DROP"), This program allows eligible employees to defer receipt of monthly retirement benefit payments while continuing employment with a Florida Retirement System employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are I in the Florida Retirement System Trust Fund and accrue interest. The Sheriff has no responsibility to FIRS other than to make the periodic payments required by State statutes. The Florida Division of Retirement issuies a publicly mailable financial report. that includes financial statements and required supplementary information for FRS, The report may be obtained by writing to Florida Division of Retirement„ 2639 North Monroe Street, Building C, Tallahassee, FL 32399-1560. Funding policy - The FIRS is noncontributory for members. Governmental employers are required to make contributions to the FRS based on statewide contribution rates. The contribution rates by job class at September 30, 2005 were as follows. regular 7.33%� special risk 18.53%; special risk administrative support 9.92%; county elected officers 15.23%; senior management 10.45% and DROP participants 9033%. The Sheriffs contributions made during the years ended September 30, 2005, 2004 and 2003 were $3,971,0 7, $3,633„399, and $3,467,248 respectively, which were equal to actuarially determined contribution requirements for each year. Note 6 - Risk management The Sheriff its 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 purchases commercial insurance for all risks of loss except Workers' Compensation and Group lnsurance. Settled claims have not exceeded these commercial insurance coverages in any of the last three years. The Sheriff participates in the coverage provided by the Board of County Commissioners of Monroe County Workers' Compensation and Group Insurance initernal service funds. 'Under these programs, Workers" Compensation provides $350,000 coverage per claim for regular employees. Risk Management has a $5,000„000 excess insurance policy for general liability claims with a $100,000 self-insured retention, and building property damage is covered for the actual value of the buildings with a deductible between $100,000 and $250,000. Deductibles for windstorm and flood vary by location. Monroe County purchases commercial insurance for claims in excess of coverage provided by the funds. Settled claims have not exceeded this commercial coverage in any of the past three years. The Sheriff' makes payments to the Workers' Compensation and Group lnsurance Funds based on estimates of the amounts needed to pay prior and current year claims. 11 MONROE COUNTY, FLORIDA SHERIFF Notes to Financial Statements Year Ended September 30, 2005 to 7 -Litigation The Sheriff is a party to various lawsuits and claims, which it is vigorously defending. Such matters arise out of the normal course of its operation, some of which are covered by insurance policies. 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 8 -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. Total lease payments made in 2005 were $3,068,384. The following is a schedule by years of minimum future rentals under non-cancelable operating leases as of September 30, 2005: Year Ending September 3.0 2006 $ 3,693,768 2007 3,628,735 2008 3,606,155 2009 3,716,737 2010 3,655,643 2011-2015 15,698,523 Total _L_22,999,561 12 REQUIRED SUPPLEMENTARY INFORMATION MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget avid Actual-Generai Fund Year Ended September 30,2005 Variance With Final Original Final Positive Rqjqyet Budget Actual ative Revenues: Intergovernmental Board of County Commissioners $ 39,234,,686 $ 39,234,686 $ 39,105,117 $ (129,569) Investment income - 156,671 156,671 Miscellaneous - - 172,694 172,694 ...................................-- Total revenues 39,234,686 39,234,686 39,434,482 199,796 Expenditures: Current. Personnei services 29,431,892 29,066,556 27,603,944 1,462,612 Operating expenses 8,970,707 9,069,196 8,905,825 163,371 Capital outlay 832,087 1,024,849 962,341 62,508 Total expenditures 39,234,686 39,160,601 37,472,110 1,688,491_ Excess of revenues over expenditures 74,085 1,962,372 1,888,287 ...... .......... Other financing uses: Transfer to Board of County Commissioners (1,888,287) (1,888,287) Transfers to other funds mm 174,08,5 74,065 - Total other financing us 74,085) [1„962,372 1,6B6,2 87 Excess of revenues over expenditures and other financing uses Fund balances, beginning of year Fund balances,end of year 13 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-IHlTIDA Grants Fund Year Ended September 30,2005 Variance With Final Original Final Positive Budget Bud et Actual Ne ative Revenues Intergovemmental $ 17,201,800 $ 19,639,155 19,648,019 $ 8,864 Miscellaneous - 98,115 98"l 15 - Total revenues 17,201,800 191,737,270 19,746,134 8,864, . ............ Expenditures: Current: Personnel services 4,171,831 5,390,74-7 5,399,611 (8,864) Operabng expenses 12,860,145 13,749,177 13,749,662 (485) Capital outlay 67,000 520,162 519,67.7 485 Debt service 102,824 100,179 100,179 Total expenditures 17,201,800 19,760,265 19,769,129 Excess of expenditures over revenues 22,99a 22,995 Other financing sources- Capital lease acquisitions 22,995 22,995 ............. Total other financing sources 22,995 22,995 Excess of revenues and other 'financing sources over expenditures - Fund balances at beginning of year Fund balances, end of year $ gy $ 14 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Federal Forfeiture Fund Year Ended September 30, 2005 Variance With Final Original Final Positive Budget _ Budget Actual (Neg!jive) Revenues: Intergovernmental $ 1,273,150 $ 1,305,949 1,305,949 $ - Investment income 47,131 52,779 52,779 - Total revenues 1,320,281 1,358,728 1,358,728 - Expenditures: Current: Personnel services 326,186 380,239 380,239 - Operating expenses 2,447,949 365,686 285,260 80,426 Capital outlay 250,000 670,161 665,161 5,000 Aid to other governments 12,000 - 85,426 (85,426) Other grants and aids 4 r'nnn I Id VVV - Total expenditures 3,051,135 1,416,086 1,416,0186 Excess of expenditures over revenues (1,730,854) (57,3581 (57,358). Other financing uses: Transfers to other funds Total other financing uses Excess of expenditures and other financing uses over revenues (1,730,854) (57,358) (57,358) -1 -7'�r% r A A 3 r% A Fund balances, beginning of year I'ju'8 1,730,851 1,7��,851 Fund balances, end of year $ $ 1.,673,496 $ 1,673,496 $ 15 MONROE COUNTY, FLORIDA SHERIFF Schedkjie of Revenues, Expenditures and Changes in Fund Balances BUdget and Actual-Shared Asset Forfeiture Fund Year lEnded September 30,2005 Variance With Final Original Final Positive dud et dud et Actual Revenues: Mvestment income $ 271,,190 $ 151,632 $ 204,968 $ 53,336 Total revenues 2-71,190 151,1632 204,968 53,336 Expenditures: Current: Personnei services 438 (438) Operating expenses - - 920 (920) Aid to other governments/non-profits 4,988,824 151,632 150,274 1,358 Total expenditures 4,988,824 151,632 151,632 - Excess of revenues over expenditures 4,71'L,6j4 - 53,336 53,336 Fund balances, beginning of year 4,717,634 4,717,634 4,717,634 Fund balances,end of year jZ1 7634 $ 4 770,970 $ 53,335 =L= 16 Af9®I ROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual Airport Services Fund Year Ended September,30,2005 Variance With Final Original Final Positive S�adg+�tBudget Actual (H gativeJ Revenues: intergovernmental 1,672,309 1,677,996 1,679,835 1,339 Total revenues 1,672,...309 1,677,996 1,679,3�35 1,,539 Expenditures, Current: Personnel services 1,493,787 1,465, 88 1,494,166 (28,578) Operating expenses 98,522 141,370 1-14,631 26,739 Capital outlay 80,000 71, 36 ' 1,0338 Total expenditures 1,,672,309 1,677,996 1,679,835 �1,839� Excess of revenues over expenditures - - Fund balances,beginning of year Fund balances„ end of year 17 OTHER SUPPLEMENTARY INFORMATION C14 -r LO 0 C44 0 —cm aj co 14' N co cc f- lll�IR It Clt cq Clt C� ll� 0 CD C%4 "t m to N CNN N co I�r N 0 U') rl CV) 0 0 0 C co tl- 0 • cc Cb CD CD 00 M Gi C6 P-W- �: CV) (Y) C14 m 0 to C) co fl- m N —N fl- tl-- co co tl- Clt IR lc IR Iq q IR cl Cl) C4, (") pl- co N (o 04 0 "t N co It C4 I- - CON cc CO P- C W 0) NV C4 CO m a) CO CD 0 C6 06 N- Cl) C14 CV) V Nt 4t co m &n 0 co U') 0) (D to 6. C6 6 Lei cd 0 co U') M N CL .�N F 0 - L. 04 N cli 40 co CO co 0 Lo Lo It> 06 C4 C5 L 0 LO m < N N N Ni 0 cn W- LL LL LL LL E OD co t-- N M cc[ Z 0u co m It co co UJ 0 L 0 C� 0 CPS.0 K 3 0. 00 uj CD 0 z t5 55 m co C14 V (Du ucc a) 0 (D ci C-4 d d cli 0 co co rl- N CK) Cw .0 E 0 E CL CL x 0 x E E 0 U) > 0 c 0 (D 0 C: 0 o U) M CL 0 E x (UlfM 0 (D CL > 0 > x (D -6 >w 2 2 0 'A m m > 0 X: 2 E 0 c 0 *1 'a m 0 w 0 r- 00 0) 0 0 c M 0 U) M > 0 > v V CL a 0 w uj 0 0 ul 0 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. Off Duty Fund - This fund accounts for receipts, expenditures and related reimbursements for law enforcement services provided to other organizations. Teen Court Fund- This fund accounts for receipts and disbursements pertaining to a program designed to deter juveniles who are becoming involved in crime. Impact Support Fund - This fund accounts for receipts and disbursements relating to the administration of the South Florida Drug & Money Laundering Task Force. Grants Fund- This fund accounts for receipts and disbursements relating to various grants. Law Enforcement Trust Fund- This fund accounts for expenditures to non-profit organizations to help deter drug use and juvenile delinquency. Fine and Forfeiture Fund- This fund accounts for the proceeds from state forfeitures received primarily from the South Florida Drug and Money Laundering Task Force. HIDTA Administrative Fund - This fund accounts for receipts of service fees collected for administering HIDTA grants. Expenditures relate to the costs of administering the grants. Commissary Fund - This fund accounts for receipts and disbursements of inmate telephone commissions, canteen revenues and other inmate programs. S. Florida Law Enforcement Trust Fund - This fund accounts for receipts and disbursements pertaining to South Florida Drug & Money Laundering Task Force. 19 MONROE COUNTY, FLORIDA SHERIFF CornbiNng Balance Sheet Gin-Majorr Governmental Funds Special Revenue Funds September 30, 2005 impact Dutyp Grant Assets Cash and cash egul,vralents $ 65 $ - Due from Board of County Commissloners 1,577 13,816 Due from other funds - 4,556 - 9,694 Clue from governmental units 8,440 - 10,344 121,630 Due fromro others - - m Total assets $ 10,062 $ 15,372 $ 10,344 $ 131,524 Liabilities and Fund Balances Liabilities: Accounts payable $ - $ $ Due to Board of County Commlssloners - - w Due to other govemmental units 65 - - - IDue to ether funds 10,017 - 10„344 121,630 Deferred revenues - - - - 'Total liabilities 10,062 - 10w344 121„630 Fund balances 18,372 9,694 metal liabiiities and fund balainces $ 10,062 $ 16,372 $ 110,344 $ 131,524 MONROE COUNTY, FLORIDA SHERIFF Combining Ballance Sheet-Nun-Major Governmental Funds Special Revenue Funds September 30, 2005 Law Enforcement Fine and HI TAB Trust Forfeiture Administrative Assets Cash and cash equivalents 153 657,52.2 $ ®u firom Board of County Cornmissioners 19,669 Du from other funds - 153 '130,044 Due from governmental units Due from others - Tot l newts $f 20,042 $ 657„675 $ 130,044 Liabilities Balances Liabilities: Accounts payable $ 15,559 $ 476 $ Due to board of County Commissioners 1,893 657,197 mm Due to other governmental ental units m Due to other funds 2,290 Ty Deferred revenues - - 56,669 Too Habilitins 20,042 657,675 56,669 Fund balances - - 73,175 Total liabilities and fund balances $ 20,042 $ 657,675 $ 130,044 21 MONROE COUNTY, FLORIDA SHERIFF Combining Balance Sheet-Dion-Major Governmental Funds Special Revenue Funds September 30, 2005 S. FL Law Total Nonmajor Enforcement Special Revenue COMMiSS Trust Fund Funds Assets Cash and cash equivalents $ 181,693 $ 536,957 $ 1,376,390 Due from Board of County Commissioners - 35,282 Due from other-funds - 24,324 168,971 Due from governmental units 5,284 - 145,698 Due from others 52,680 - 52,680 Total assets $ 239,657 $ 561,281 $ 1,7'79,021 Liabilities and Fund Balances Liabilities: Accounts payable 3,987 $ 20,324 Due to Board of County Commissioners - 659,090 Due to other governmentM units 601 666 Due to other funds 18,868 163,149 Deferred revenues - w 66,869 Total liabilities 23,456 900,098 Fund balances 216,201 561,281 878,9�23 Total Viabilities and fund balances $ 239,657 $ 561,281 $ 1,779,021 22 MONROE COUNTY,FLORIDA SHERIFF Combining Statement of Revenues,Expenditures and Changes in Fund Balances Non-Major Governmental Funds Special Revenue Funds Year Ended September 30,2005 Impact Off-Duty Teen Court Support Grants Revenues: Intergovernmental $ 13,990 $ 49,720 $ - $ 386,828 Charges for services 93,923 - 141,255 - Fines and forfeitures - - Investment income Miscellaneous - - Total revenues 107,913 79,720 141,255 386,828 Expenditures: Current: Personnel services 107,978 81,554 138,756 326,943 Operating expenses - 10,220 2,499 123,104 Capital outlay - - 10,206 Aid to other governments/non-profits - - - Total expenditures 107,978 91,774 141,255 460,253 Excess of revenues over (under)expenditures 5 (42,054) L73,4 5'.LL Other financing sources(uses): Transfers from other funds 74,085 Transfer to Board of County Commissioners - Total other financing sources(uses) - 74,085 Excess of revenues over(under)expenditures and other financing sources(uses) (65) (42,054) 660 Fund balances, beginning of year 65 60,426 9,234 Fund balances,end of year $ 18,372 $ 9,894 23 MnNROE COUNTY, FLORIDA SHERIFF Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds Special Revenue Funds Year Ended September 3O.2OO5 Enforcement Fine and mDTA Trust Fund Forfeiture Administrative Revenues: Intergovernmental $ 125.145 $ 120.210 $ - Charges for services ' - 190.883 Fines and forfeitures - - - Investment income - 7.123 Miscellaneous 607631 Total revenues 125145 734,964 190683 Expenditures: Current: Personnel services 92.810 - 172,862 Operating expenses 5.676 15.588 20.403 Capital outlay - - - Aid uz other no,emmema/non-pmfita 26,559 ' - Total expenditures 125145 15 19 Excess cf revenues over (under)expenditures - 71 Other financing sources(ueee): Transfers from other funds - - Transfer om Board ofCounty Commissioners - Total other financing sources(usee) - (719,366) Excess nf revenues over(unuer)expenditures and other financing sources(uses) - - (2.582) Fund balances, beginning nfyear - - 75757 Fund balances,end ofyear 24 MONROE COUNTY,FLORIDA SHERIFF Combining Statement of Revenues,Exper4tures and Changes In Fund Baran Non-Major Governmental Funds Speclai Revenue Funds Year Ended September 30,2005 Enforcement Special Revenue Commissary Trust Fund Funds Revenues: interqoverrunental $ - $ $ 695,893 Charges ftr services 416,299 842,160 Fkies and forfeitures - 170,371 170,371 investment in me 3,049 11,485 21,657 Miscellaneous 62,289 - 669,92('.) Total revenues 481,637 181,856 2,400,001 Expenditures: Current: Personnel services 142,384 - 1,063,387 Operating expenses 209,650 261 387,411 Calpital outlay - 10,206 Aid to other governmens Inon-profits - - 26,559 Total expenditures 352,034 261 1,Q17,563 .......... Excess of revenues over (under)expenditures 129,603 181,595 912,438 Other financing sources(uses): Transfers frorn other funds 74,085 Transfer to Board of County Commissioner-, L?1 9,3 6D.' Total other financing sources(uses) Excess of revenues over(under)expenditures and other financing sources(uses) 129,603 181,595 267,157 Fund balances,beginning of year 86,598 379,686 6111,766 Fund balances,end of year $ 216,201 561,281 $ 878,923 25 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Off Duty Fund Year Ended September 30,2005 Variance With Final Original Final Positive ----2yj%et IuNget ctual ative Revenues: Intergovernmental $ - $ - 13,990 $ 13,990 Charges for services 137,244 107,978 93,923 LI4,055 j Total revenues 137,244 107,978 107,913 (65') Expenditures: Current: Personnel services 126,287 107,978 107,978 Operating expenses 11,022 Total expenditures 137,309 107,978 Excess of expenditures over revenues -__ 65 165 1 --------—L651 j Fund balances, beginning of year ......... 65 65 65 Fund balances, end of year $ - 65 $ $ (65) 26 III ONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actuai-Impact Support Fund Year Ended September 30,2005 Variance With Final Original Final Positive 2yj2et Ryqget Actual afive� Revenues: Charges for servlces $ 160,344 $ 141,255 $ 141,255 $ Total revenues '1601,34,4 141,255 141,255 Expenditures: Current: Personnel services 159,844 141,236 138,756 2,480 Operating expenses 500 19 2,499 J2,4tt0 ' Total expenditures 160,344 --141,255 141,255 Excess of revenues over expenditures - - - Fund balances,beginning of year Fund balances,end of year 27 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Grants IFund Year Ended September 30,2005 Variance With Final Original Final Positive Budget Budget Actual ative Revenues- Intergovemmental $ 372,466 385,694 $ 386,828 $ 1,134 Charges for services - 474 - Total revenues 372,466 386,1 68 386,828 660 Expenditures. Current: Personnel services 329,514 326,943 326,943 - Operating expenses 52,186 123,104 123,104 Capital outlay 10,206 10,206 Total expenditures 381,700 460,253 460,253 - Excess of expenditures over revenues _____Lg,234 i74,0891 1. (73,425) _660 Other financing sources Transfers from other funds 74,085 74,085 - Total other financing sources 74,085 74,085 - .... .......... Excess of revenues and other financing sources over expenditures ____L-9,234 - 660 660 Fund balances, beginning of year 9,234 9,2,34 9,234 - Fund balances,end of year 9L234 9,894 $ 660 26 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues,Expenditures and Cbanges in Fund Balances Budget and Actual-Law Enforcement Trust Fund Year Ended September 30,2005 Variance With Final Original! Final Positive ......!!�et I3�et Actual (Negative) Revenues: Intergovemmental $ 52,650 $ 125,145 $ 125,145 $ Total revenues 52,650 125,145 125,1145 - Expenditures., Current: Personnel services 97,916 92,910 5,006 Operating expenses - 27,229 5,676 21,553 Aid to other governments 52,650 - 26,559 L26,559 Total expenditures 52,650 125,145 125,145 ................ Excess of revenues over expenditures Fund balances, beginning of year Fund balances,end of year 29 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Fine and Forfeiture Fund Year Ended September 30,2005 Variance With Final Original Final Positive ----Rm#vet Actual atv--TNiJ- Revenues- lntergover-nmental $ $ $ 120,210 $ 120,210 Mvestment income 3,522 - 7,123 7,123 Miscellaneous 304,651 734,964 607,631 L27,3333) Total revenues 308,173 '734,964 734,964 Expenditures: Current° Operating expenses '15,580 '15,598 '15,598 Capital outlay 2091,701 - To expenditures 225,28-1 115,598 15,598 Excess of revenues over expenditures 82,892 719,366 719,366 Other financing uses: l"ransferto Board of County,Commissioners (719,366) IZ19,3661 Total other financing uses (82,8q2l (719,3661 (7'19,366 Excess of revenues over expenditures and other financing uses Fund balances, beginning of year Fund balances,end of year $ 30 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes In Fund Balances Budget and Actual.-HlIDTA Adux Wstrative Fund Year Ended September 30,2005 Variance With Final Original Final Positive Budget _ Budget Actual Ne ative Revenues:: Charges for services 190„039 190,683 190,683 Total revenues 190,9438 190„663 190,683 Expenditures: Current: Personnel 174,413 172,862 172,862 Operating expenses 91,382 20„403 ,20,403 Total expenditures 265,795 193,265 193,,265 Excess of revenues over expenditures 75,757' 2„532 2,52 Fund balances, beginning of year 75,757 75„757 75,757 Fund balances end of year - 73,175 73„175 31 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Commissary Fund Year Ended September 30,2005 Variance With Final Original Final Positive Rud et BudgetActual QINeative Revenues: Charges for services $ - $ 286,696 416,299 129,603 Investment income 2,084 3,049 3,049 - Miscellaneous 455,301 62,289 62,289 - Total revenues 457,385 352,034 481,637 129,603_ Expenditures: Current.' Personnel 135,702 142,384 142,384 Operating expenses 408,281 209,650 209,650 Total expenditures 543,983 352,034 352,03,4 - Excess of expenditures over revenues (86,598) - 129,603 129,60�3 Fund balances, beginning of year 86,598 86,598 86,598 - Fund balances, end of year $ - $ 86598 216L201= 9603 32 MONROE COUNTY, FLORIDA SHERIFF Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-S. Florida Law Enforcement Trust Fund Year Ended September 30,2005 Variance With it Original Final Positive Budget Sudet tual (Negative) Revenues: Fines and forfeitures $ 80,900 $ 261 $ 170,371 $ 170,110 Investment income 9,675 - -'. 11,485 11,485 Total revenues 90,575 261 181,856 181,595 Expenditures: Current: Operating expenses 261 261 - Aid to private organizations 470,261 - - Total expenditures 470,261 261 261 Excess of revenues over (under)expenditures 79,686 181,595 18'1'595 Fund balances, beginning of year 379,686 379,686 379,686 - Fund balances, end of year $ 379ffl6 561,281 $ 161,595 33 MONROE COUNTY, FLORID SHERIFF Agency Funds Description The purpose of each agency fund in the combining financial staltement on 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. 34 MONROE COUNTY, FLORIDA SHERIFF Combining Statement of Changes in Fiduciary Assets and Liabilities All Agency Funds Year Ended September 30,2005 October 1, September 30, 2004 Additions Deductions 2005 CjyjLerQQM Assets Cash and cash equivalents 50,763 $ 122,528 $ 142,591 $ 30,700 Total assets $ 50,763 $ 122,528 $ 14--275-91- -r 30,700-. Liabilities Due to Board of County Commissioners $ - $ 6,101 $ - $ 6,101 Due to other governmental units 3,585 - 3,585 Due to individuals 47,178 116,427 139,006 24,599 Total liabilities $ 50,763 $ 122,528 $ 142,591 $ 30,700 Bqnda Assets Cash and cash equivalents $ 489,159 $ 1,138,302 $ 1,093,827 $ 533,634 Total assets 489,1 9- $ 1,138,302 $ 1,093,827 $ 533,634 Liabilities Due to individuals $ 489,159 $ 1,138,302 $ 1,093,827 $ 533,634 % Total liabilities -48 1,59 $ 1,136,302.-... $ 1,093,827 $ 533,634- InMaJ& Assets Cash and cash equivalents $ 81,559 $ 1,169,515 $ 1,176,411 $ 74,663 Total assets $ 81,559 $ 1,169,515- -$7-1,176,411 $ 74,663- Liabilities Due to other funds $ 12,247 $ $ 12,247 $ - Due to individuals 69,312 1,169,515 1,164,164 74,663 Total liabilities To ai II nc lonria Assets Cash and cash equivalents 621,481 $ 2,430,345 $ 2:.412,829 $ 638,997 Total assets $ 621,481 $ 2,430,345 $ 2,412,829 $ 638,997 Liabilities Due to Board of County Commissioners $ $ 6,101 $ - $ 6,101 Due to other funds 12,247 - 12,247 - Due to other governmental units 3,585 - 3,585 Due to individuals 605,649 2,424,244 2,396,997 632,896 Total liabilities $ 621,481 $ 2,430,345 $ 2,412,829 $ 638,997 35 SUPPLEMENTARY INDEPENDENT AUDITORS' REPORTS • INDEPENDENT AUDIT 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 Richard Roth, Sheriff of Monroe County, Florida: We have audited 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, 2005, which collectively comprise the Sheriffs basic financial statements, and have issued our report thereon dated February 8, 2006 for the purpose of compliance with section 218.39(2), Florida Statutes and Chapter 10.550 Rules of the Auditor General-Local Governmental Entity Audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the Sheriffs internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and they 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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 36 This report is intended enke|v for the |OfOrnnab0l and use of management and applicable state agencies, and is not intended to be and should not be Used by anyone other than these specified parties. ~ West Palm Beaoh, Florida February 8. 2OOO 37 INDEPENDENT AUDITORS' MANAGEMENT LETTER To the Honorable Richard Roth, Sheriff of Monroe County, Florida: We have audited 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, 2005, which collectively comprise the Sheriffs basic financial statements, and have issued our report thereon dated February 8, 2006 for the purpose of compliance with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General-Local Governmental Entity Audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, dated February 8, 2006, and it should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General. Those rules (Section 10.554(1)(h)(1)) require that we address in the management letter, if not already addressed in the auditors' report on compliance and internal controls, whether or not significant findings and recommendations made in the preceding annual financial audit report have been followed. No recommendations were made in the preceding annual financial audit report. The Rules of the Auditor General (Section 10.554(1)(h)(2)) state that a management letter shall have a statement as to whether or not the Sheriff complied with Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit of the financial statements of the Sheriff, the results of our tests did not indicate that the Sheriff was in noncompliance with Section 218.415 regarding the investment of public funds. The Rules of the Auditor General (Section 10.554(1)(h)(3)) require disclosure in the management letter of any recommendations to improve the Sheriffs management, accounting procedures, and internal controls. There were no recommendations in connection with the fiscal 2005 financial statement audit. The Rules of the Auditor General (Section 10.554(1)(h)(4)) require disclosure in the management letter of the following matters if not already addressed in the auditors' reports on compliance and internal controls: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. There were no such matters noted. 38 The Rules of the Auditor General (Section 10.554(1)(h)(5)) also require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The 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. This management letter is intended solely for the information and use of management, the State of Florida Office of the Auditor General, and applicable state agencies, and is not intended to be and should not be used by anyone other than these specified parties. West Palm each, Florida February 8, 2006 39