Loading...
Fiscal Year 1992 j1 i MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT �J FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Lj l KEMP & GREEN, P.A. CERTIFIED PUBLIC ACCOUNTANTS i 1 CONTENTS I � Pa es i Independent Auditors' Report I Financial Statements: Balance Sheet 2 C Statement of Revenues and Expenditures - Budget and Actual - General Fund 3 Notes to Financial Statements 4-7 Supplemental Schedule: Statement of Changes in Assets and Liabilities - Agency Fund g I Other Reports: Report on Internal Accounting Control and Management Comments 9-11 Report on Compliance 12 Li j i J 11 L! � j KEMP F3 GREEN, P.A. Certified Public Accountants 1438 KENNEDY DRIVE _ P. O. BOX 1529 KEY WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE IVM. O. KEMP, C.P.A.� (305) 294-2581 AND FLORIDA INSTITUTE OF ',AARVA E. GREEN, G.P.A. FAX * (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT Mr. Danny L. Kolhage i Clerk of the Circuit Court Monroe County, Florida We have audited the, general purpose financial statements of the Clerk of the l Circuit Court of Monroe County, Florida as of September 30, 1992 and for the year I I then ended, listed in the accompanying table of contents. These general purpose financial statements are the responsibility of the Clerk of the Circuit Court. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. _ We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards, issued by the Comptroller of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, �! evidence supporting ,the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall 1 1 general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Clerk of the Circuit Court of Monroe County, Florida at September 30, 1992 and the r— results of its operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplemental statement listed in the accompanying table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. L__: Kemp & Green, P.A. Certified Public Accountants L March 3, 1993 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT BALANCE SHEET SEPTEMBER 30, 1992 L-J Governmental Fiduciary Fund Type Fund Type General Agency U Assets: 1 Cash and Investments $ _ $ 1,421,451 I Accounts Receivable 26,874 Due from Other Governments - 3,987 Total Assets - $ 1,452,312 Liabilities: I�) Due to Others $ - $ 658,015 Due to Other Governments - 794,297 i , i ! Total Liabilities $ - $ 1,452,312 U u I ' The accompanying notes are an integral part i of these financial statements. -2- MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 1992 Variance Favorable Budget Actual (Unfavorable) Revenues: Board of County 'Commissioners $ 1,873,914 $ 1,569,829 $ (304,085) Charges for Services 740,000 919,300 179,300 Interest Income - 39,650 39,650 Total Revenues 2,613,914 2,528,779 (85,135) I � Expenditures: General Government: j Personal Services 2,327,187 2,290,636 36,551 if Operating Expenses 251,189 204,966 46,223 Capital Outlay 35,538 33,177 2,361 Total Expenditures 2,613,914 2,528,779 85,135 Excess of Revenues over Expenditures n i L-J The accompanying notes are an integral part of these financial statements. -3- r l I MONROE COUNTY, FLORIDA { CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS � f L SEPTEMBER 30, 1992 I NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting principles and policies used in the preparation of these financial statements. Reporting Entity - The Monroe County Clerk of the Circuit Court is a separate Constitutional Officer as provided by the laws of the State of Florida. For financial reporting purposes, it is deemed to be a component unit of the County and therefore is included as such in the Monroe County Comprehensive Annual � - Financial Report. The Monroe County Finance Department maintains the accounting l system for the Clerk's general fund, which is included in the General Fund of the - Monroe County, Florida Board of County Commissioners. Basis of Presentation - These financial statements have been prepared in conformity with the accounting principles and reporting guidelines established by the Governmental Accounting Standards Board. The Clerk of the Circuit Court utilizes the following fund types and account groups: i ; Governmental Fund Type: The General Fund - is used to account for all revenue and expenditures applicable to the general operations of the Clerk of the Circuit Court that are not required either legally or by generally accepted accounting principles to be accounted for in another fund. Fiduciary Fund Type.: The Agency Fund -' is custodial in nature and does not involve measurement of results of operations (assets equal liabilities) . The Agency Fund is merely a clearing account for assets held by the Clerk of the Circuit Court as an agent for individuals, private organizations, other governments or other funds. r � Basis of Accountina '- The modified accrual basis of accounting is followed by the - General Fund. Under the modified accrual basis of accounting, revenues are recorded when received or when susceptible to accrual , that is measurable and - available to finance the Clerk of the Circuit Court's operations. Expenditures _ are recorded when the liability is incurred except for accumulated sick and vacation pay which ;are not recorded until paid. Budgets are prepared on the modified accrual basis. Budgetary Requirement - Expenditures are controlled by appropriations in � l accordance with the budget requirements set forth in the Florida Statutes. The budgeted revenues and expenditures in the accompanying financial statements reflect all approved amendments. _2 -4- MONROE COUNTY, FLORIDA I/ CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) - General Fixed Assets - The tangible personal property used by the Clerk of the Circuit Court in its operations is shown in the General Fixed Assets Account - Group of the Board '-of County Commissioners. In addition, the office space, payroll processing services, and certain other expenditure items used in the Clerk of the Circuit Court's operations are provided at no cost by the Board of County Commissioners. Compensated Absences - The Clerk's accrued compensated absences are included in VI the Long Term Debt Group of the Board of County Commissioners. The amount of the Clerks accrued compensated absences as of September 30, 1992 was $205,163. 1 NOTE 2 - CASH AND INVESTMENTS Cash at September 30, 1992 consists of interest bearing deposits. Demand deposits are fully insured in accordance with Florida Statute 280, which established the multiple financial institution collateral pool . . I Demand Deposits $ 852,397 Amount Invested in Florida State Board of Administration Pooled Cash 569.054 $ 1,421,451 NOTE 3 - RETIREMENT ,PLAN LI Substantially all full-time Clerk employees are participants in the Florida Retirement System "The System", a multiple-employer, . cost-sharing public retirement system. The System, which is controlled by the State Legislature and administered by the State of Florida, Department of Administration, Division of u Retirement, covers ' approximately 546,000 full-time employees of various governmental units within the State of Florida. The System provides for vesting of benefits after 10 years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with 10 or more years of service. Early retirement is available after 10 years of service with a 5% reduction of benefits for each year prior to the normal retirement age. Retirement benefits are based upon age, average compensation and years-of-service credit where average compensation is computed ( j as the average of an. individual 's five highest years of earnings. The Clerk has no responsibility to the System other than to make the periodic payments required by state statutes. Ten-year historical trend information -5- U MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 NOTE 3 - RETIREMENT PLAN (Continued) showing the System's progress in accumulating sufficient assets to pay benefits when due is presented in the System's June 30, 1991 Comprehensive Annual Financial Report. The amount reported below as "pension pension benefit obligation" is a standardized - disclosure measure 'of the present value of pension benefits, adjusted for the effects of projected salary increases estimated to be payable in the future as a result of employee.-service to date. The measure is the actuarial present value of credited projected benefits and is intended to assist users in assessing the plan's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons LJ among government pension plans and employers. The System does not conduct separate measurements of assets and pension benefit obligations for individual employers. The pension benefits obligation at June 30, 1991 for the System as a whole, determined through an actuarial valuation performed as of that date, was u $33.8 billion. The System's net assets available for benefits on that date (valued at market) were $23.4 billion, resulting in an unfunded pension benefit obligation of $10.4 billion. Participating employer contributions are based upon state-wide rates established by the State of Florida. These rates are applied to employee salaries as follows: regular employees, 16.51%, special risk employees, 26.35%, and elected officials, 24.59%. The Clerk's contributions of approximately $322,000 made during the year ended September 30, 1992 were made in accordance with contribution requirements determined by the System as of June 30, 1992. These contributions represented approximately .013% of total contributions required of all participating employers durin the fiscal P P 9g year of the System ended June 30, 1992. Total payroll for Clerk of the Circuit Court employees during the fiscal year ended September 30, 1992 was approximately $1,811,000 which was substantially the { same as payroll covered by the System. The contribution to the System for the ;J year was approximately 17.8% of total payroll . -� There were no changes in actuarial assumptions, benefit provisions, actuarial funding methods or any other significant factors that affected the Clerk's contribution during ,.the fiscal year ended September 30, 1992. Effective January 1, 1992 contribution rates- were increased to cover future normal costs and to amortize the unfunded liability determined as of June 30, 1991. NOTE 4 - LEASE COMMITMENTS UI The Clerk pays rent under operating leases for office equipment. Rental expense for the current year was approximately $17,560. -6- U L MONROE COUNTY. FLORIDA CLERK OF THE CIRCUIT COURT i NOTES TO FINANCIAL STATEMENTS i SEPTEMBER 30, 1992 NOTE 5 - DEFERRED COMPENSATION PLAN The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The Clerk offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all employees, permits them to defer a portion of their salary until future years. All amounts of compensation deferred under the plan, all property and rights I—; purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the County (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Clerk's general creditors. Participants' rights under the plan are equal to those of general creditors of the Clerk in an amount equal to the fair market value of the deferred account for each participant. The Clerk has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The Clerk believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. L u r_ �J Li I l -7- f MONROE COUNTY FLORIDA �J CLERK OF THE CIRCUIT COURT STATEMENT OF CHANGES IN ASSETS AND LIABILITIES- AGENCY FUND FOR THE YEAR ENDED SEPTEMBER 30, 1992 i Balance Balance 1991 Additions Deductions 1992 Assets: Cash and Investments $1,933,749 $15,298,805 $15,811,103 $1,421,451 Accounts Receivable 21,440 32,133 26,699 26,874 Due from Other Governments - 23,738 19,751 3,987 $1,955,189 $15,354,676 $15,857,553 $1,452,312 Liabilities: Due to Others $1,124,375 $ 5,516,420 $ 5,982,780 $ 658,015 Due to Other Governments 830,814 9,838,256 9,874,773 794,297 $1,955,189 $15,354,676 $15,857,553 $1,452,312 V II L iU I -8- LI LEI ' KEMP & GREEN, P.A. Certified Public Accountants 1438 KENNEDY DRIVE P. O. BOX 1529 KEY WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE �WM. O. KEMP, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF lNARVA E. GREEN, C.P.A. FAX # (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROL AND MANAGEMENT COMMENTS Mr. Danny L. Kolhage Clerk of the Circuit Court Monroe County, Florida Dear Sir: Ll We have audited the general purpose financial statements of the Clerk of the -, Circuit Court of Monroe County, Florida, for the year ended September 30, 1992, and have issued our report thereon dated March 3, 1993. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements -- of the Clerk of the Circuit Court of Monroe County, Florida, for the year ended September 30, 1992, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the Clerk of the Circuit Court of Monroe County, Florida, is -- responsible for establishing and maintaining an internal control structure. In Li i fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies' and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the _ design and operation of policies and procedures may deteriorate. _ For the purpose of this report, we have classified the significant internal control policies and. procedures in the following categories: -� - Treasury/Financing - Revenues/Cash Receipts - Expenditures/Cash Disbursements External Financial Reporting U - Payroll/Personnel -9- j it For all of the control categories listed previously, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. . A material weakness is a condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose 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 structure and its operations that we consider to be material weaknesses as defined above. MANAGEMENT COMMENTS � - Our report on Internal Accounting Control has been presented in the previous I,-] section of this report. The purpose of this section is to disclose conditions which do not materially affect the Clerk of the Circuit Court's financial statements, and to disclose other items as required by the Rules of the Auditor -_ General , State of Florida. The following comments and recommendations are made to assist the Clerk of the Circuit Court in administering future operations. i ' Reported in- Prior Year's Report on Internal Control - and Management's Comments, Not Implemented as of September 30, 1992 During the course of our audit of the financial statements of the Clerk of the Circuit Court, we noticed appropriate action had been taken upon recommendations LI and suggested accounting procedures as outlined in the Management Comments section of the Report on Internal Accounting Control and Management Comments for the year ended September 30, 1991, except for the following: Designation of Responsibility - Marathon and Plantation Key offices allow several people to use the same cash register and cash drawer. Accountability for shortages and overages would be improved by assigning each cashier his or her own cash drawer. r- h Old Outstanding Checks - We noted checks which had been outstanding for over a year on the cash bond and registry of the court accounts. In. addition, the registry of the court account is holding funds for outstanding checks drawn on a bank account which has been closed. { j These funds should be subject to unclaimed funds procedures and removed as reconciling items from these accounts. The amounts were removed during fiscal e year 1992-1993. -10- Current Year Findings L Key West Traffic Division �Y Observation: Ea&,supervisor conducts the follow-up on checks returned by the bank for insufficient funds. The supervisors sent a notice of "thirty day demand for payment" relative to the returned check, but there were no "worthless check affidavits" filed .-with the state attorney's office to complete the Clerk's established collection procedures. The balance of amounts receivable for -- returned checks has increased. - Recommendation: The accounts receivable for returned checks should be reviewed on a routine basis by someone involved in a different level of operations. "Worthless check affidavits" should be filed with the state attorney on a routine basis in accordance with the Clerk's policy. Abandoned Property' Report jObservation: The abandoned property report was not prepared in November as required by Florida Statute 717.117. The report was prepared in April , 1993. Recommendation: The report should be prepared in a timely fashion. Preparation of this report has the added benefit of eliminating the Clerk's accountability for funds that cannot be returned to the appropriate party. OTHER REQUIRED DISCLOSURES fi !_ We have reviewed the annual report filed with the Department of Banking and Finance for Monroe County, Florida pursuant to Section 218.32, Florida Statutes. { -� This report is in agreement with the annual audit report which incorporates the ` financial statements of the Clerk of the Circuit Court of Monroe County, Florida. Marva Green was the Auditor in Charge for the audit of the Clerk of the Circuit - Court of Monroe County, Florida. We attest that the Auditor in Charge met the educational requirements pursuant to Chapter 11.45, Florida Statutes. This report is intended for the information of management and the Auditor General , State of Florida. This restriction is not intended to limit the distribution of this report, which is a matter of public record. Kemp & Green, P.A. Certified Public Accountants March 3, 1993 I i KEMP Ed GREEN, P.A. Certified Public Accountants — 1438 KENNEDY DRIVE P. O. BOX 1529 KEY WEST, FLORIDA 33041-1529 MEMBER OF AMERICAN INSTITUTE WM. O. KEMP, C.P.A. (305) 294-2581 AND FLORIDA INSTITUTE OF MARVA E. GREEN, C.P.A. FAX # (305) 294-4778 CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON COMPLIANCE Mr. Danny L. Kolhage Clerk of the Circuit Court - Monroe County, Florida We have audited the general purpose financial statements of the Clerk of the Circuit Court of Monroe County, Florida, as of and for the year ended September 30, 1992 and have issued our report thereon dated March 3, 1993. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the `j United States. Those standards require that we plan and perform the audit to obtain reasonable _ assurance about whether the general purpose financial . statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Clerk of Monroe County, Florida, is the responsibility of the Clerk's management. As part of obtaining reasonable assurance about whether the general purpose j financial statements are free of material misstatement, we performed tests of the Clerk's compliance with certain provisions of laws, regulations, contracts, and grants. However, ,our objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the - Clerk of the Circuit Court of Monroe County, Florida, complied in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Clerk of the Circuit Court of Monroe County, Florida had not I ' complied, in all material respects, with those provisions. This report is intended for the information of management and the Auditor General , State of Florida. This restriction is not intended to limit the i distribution of this report, which is a matter of public record. ( � Kemp & Green, P.A. _1 Certified Public Accountants March 3, 1993 ' - f -12-