Report No. 11103, State Attorney Report No . 1 1 1 0 3
STATE OF FLORIDA
OTTic• of the Auditor G l
v
ns80RT OR? aunt
Or THE
STATE OF FLORIDA
OFFICE OF THE STATE ATTORNEY
SIXTEENTH JUDICIAL CIRCUIT
FOR THE FISCAL YEAR ENDED JUNE 30, 1987,
AND
SELECTED AREAS OF
MANAGEMENT COMPLIANCE AND PERFORMANCE
THROUGH MARCH 31, 1988
DATED: SEPTEMBER 6, 1988
1 1 1 0 3
STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
REPORT ON AUDIT
OF THE
STATE OF FLORIDA
OFFICE OF THE STATE ATTORNEY
SIXTEENTH JUDICIAL CIRCUIT
FOR THE FISCAL YEAR ENDED JUNE 30, 1987,
AND
SELECTED AREAS OF
MANAGEMENT COMPLIANCE AND PERFORMANCE
THROUGH MARCH 31, 1988
DATED: SEPTEMBER 6, 1988
OFFICE OF THE STATE ATTORNEY
SIXTEENTH JUDICIAL CIRCUIT
Table of Contents
Page
No.
LETTER OF TRANSMITTAL V
I SCOPE AND OBJECTIVES 1
II SUMMARY OF FINDINGS 2
III BACKGROUND 3
IV REPORT ON FINANCIAL STATEMENTS 4
V REPORT ON COMPLIANCE MATTERS 5
VI REPORT ON INTERNAL CONTROL 5
VII FINDINGS AND RECOMMENDATIONS 6
A. Personnel and Payroll Administration 6
B. Procurement 7
C. Tangible Personal Property 8
D. Motor Vehicle Use 9
VIII STATEMENT FROM AUDITED OFFICIAL 10
IX EXHIBITS 10
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�T�fe erS�
•%,. STATE OF FLORIDA
OFFICE OF TIIE AUDITOR GENERAL
TALLAIIASSEE
CHARLES L LESTE R,C. P. A. September 6, 1988
AUDITOR GENERAL
The President of the Senate, the Speaker of the
House of Representatives, and the
Legislative Auditing Committee
In accordance with the provisions of Section 11 .45,
Florida Statutes, and as part of the Legislature' s oversight
responsibility for operations of State agencies, I have directed
that a financial and compliance audit be made of the Office of the
State Attorney, Sixteenth Judicial Circuit. The results of the
audit are presented in this report.
Respectfully submitted,
02.120
Charles L. Lester
Auditor General
Audit supervised by:
Gerald J. Schilling
Audit made by:
Philip B. Ciano
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FINANCIAL AND COMPLIANCE AUDIT
OF THE
OFFICE OF THE STATE ATTORNEY
SIXTEENTH JUDICIAL CIRCUIT
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SCOPE AND OBJECTIVES
(1) Financial, compliance, and operational performance
audits are made by the Auditor General as part of the
Legislature' s oversight responsibility for operations of State
agencies. Our audit, which was made in accordance with generally
accepted governmental auditing standards, included an examination
of the financial statements of the Office of the State Attorney,
Sixteenth Judicial Circuit, as of and for the fiscal year ended
June 30, 1987, and selected Office of the State Attorney actions
taken through March 31, 1988. The proper administration of public
funds requires the adoption and use of procedures that will
promote the economic and efficient conduct of duties and
responsibilities. Consequently, an evaluation of selected
administrative and accounting controls was also included in the
scope of this audit.
(2) The objectives of our examination were:
• To determine whether the accompanying financial statements of
the Office of the State Attorney, Sixteenth Judicial Circuit,
are presented fairly in accordance with the basis of
presentation described in note 1 on page 14.
• To evaluate the Office of the State Attorney' s performance in
administering its assigned responsibilities, both in manner
and substance, in accordance with applicable laws, and
administrative rules and regulations.
• To evaluate the Office of the State Attorney' s control
systems and other management practices to determine the
extent to which they promoted and encouraged compliance with
controlling laws, and administrative rules and regulations;
the economic and efficient operation of the Office; and
fiscal accountability.
• To provide information the Legislature may use to improve the
operations of the Office of the State Attorney, Sixteenth
Judicial Circuit, and allocate limited public resources.
(3) On February 12, 1988, this Office issued audit report
No. 10985, with accompanying general purpose financial statements
presenting the financial position of the State of Florida at June
30, 1987, the results of its operations, and the changes in
financial position of its proprietary fund types and similar trust
funds for the year then ended. The Office of the State Attorney
is an integral part of the reporting entity of the State of
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Florida. The financial information relative to the Office of the
State Attorney was included by the State Comptroller in the
financial statements that accompany that report.
(4) Federal resources received by the Office of the State
Attorney, Sixteenth Judicial Circuit, under contract and grant
agreements to finance specific programs and projects were audited
in connection with our Statewide audit of Federal assistance
received by the State of Florida. Findings concerning these
resources are the subject of a separate audit report.
SUMMARY OF FINDINGS
(5) Our detailed findings are included in paragraphs 21
through 40 under the heading FINDINGS AND RECOMMENDATIONS. A
summary of findings included in this report is presented below.
Paragraphs referenced in the Summary of Findings and the State
Attorney' s response thereto, exhibit E, should be read for a more
comprehensive understanding of the findings and related
recommendations.
• Internal controls relating to personnel and payroll functions
could be improved by separating the incompatible duties of
record keeping and handling payroll warrants and by
documenting the approval of weekly time sheets for part-time
and temporary employees. (See paragraphs 21 through 24. )
• Evidence that prior approval was obtained for employees'
leave with pay was not always available. (See paragraphs 25
through 27. )
• Internal controls over disbursements could be improved
through the use of written purchase orders. (See paragraphs
28 and 29. )
• Evidence of the receipt of goods and services could be
improved by requiring the signature of the individual
accepting receipt of goods and/or services. (See paragraphs
30 and 31. )
• Tangible personal property records were not adequate to
substantiate the amounts reported for furniture and equipment
and for books, as control accounts were not in use and
individual property records had not been established. (See
paragraphs 32 through 36 . )
• Vehicle usage records for vehicles assigned to State Attorney
personnel on a 24-hour basis did not adequately document the
purpose of travel . (See paragraphs 37 through 40. )
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BACKGROUND
(6) Section 27.01, Florida Statutes, provides that there
shall be a State Attorney for each of the judicial circuits of the
State who shall be elected at the general election by the
qualified electors of the circuit. The duties of the
State Attorney as prescribed by Chapter 27, Part I, Florida
Statutes, include prosecuting or defending on behalf of the State
in circuit and county courts all suits, applications, or motions,
civil or criminal, in which the State is a party; attending the
grand jury for the purpose of examining witnesses in its presence,
giving legal advice in any matter before it, and preparing bills
of indictment; summoning and examining witnesses on behalf of the
State; assisting the Attorney General in the preparation and
presentment of appeals to the Supreme Court from the circuit court
of their respective circuits of all cases, civil or criminal, in
which the State is a party; and representing the State in all
cases of habeas corpus arising in their respective circuits and in
cases of preliminary trial of persons charged with capital
offenses.
(7) The State Attorney of the Sixteenth Judicial Circuit is
responsible for performing the duties described above, as provided
by law, in Monroe County. The Office of the State Attorney
employed 43 people at June 30, 1987, to perform the duties of the
Office. As provided by law, physical facilities and other support
for the State Attorney are provided by Monroe County. Kirk Zuelch
is State Attorney of the Sixteenth Judicial Circuit.
(8) The Office of the State Attorney was funded by State
appropriations for the fiscal year 1986-87 pursuant to Chapter
86-167, Laws of Florida, the General Appropriations Act. The
following is a summary of General Revenue released appropriations
by appropriation category for fiscal year 1986-87 :
Appropriation Amount
Category Released
Salaries and Benefits $1, 351,016
Other Personal Services 21,200
Expenses 150, 436
Operating Capital Outlay 11, 587
Special Categories:
Salary Incentive Payments 5, 929
State Attorneys - Law Library 1,881
Total $12542, 049
(9) Monroe County provided facilities and services to the
Office of the State Attorney as required by Section 27 . 34(2) ,
Florida Statutes. These facilities and services included office
space, utilities, and telephone service. In addition, other
support as itemized in Section 27 . 34(2 ) , Florida Statutes, was
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provided by Monroe County. According to the State Attorney, the
value of this support was $111, 150 in fiscal year 1986-87 . The
value of this support is reported as intergovernmental revenue -
county support, on exhibit B of the financial statements.
(10) The State Attorney' s salary was paid in accordance with
Section 27 . 35, Florida Statutes, and Chapter 86-167, Laws of
Florida, the General Appropriations Act. Section 27. 181(4) ,
Florida Statutes, provides that the salary for each Assistant
State Attorney shall be set by the State Attorney at an amount not
to exceed 100 percent of the State Attorney' s salary. The
Classification and Pay Plan, promulgated by the Florida
Prosecuting Attorneys Association as required by Section 27 . 25( 1) ,
Florida Statutes, was used to set the salary ranges for the
several classes of employees.
REPORT ON FINANCIAL STATEMENTS
( 11) We have examined the financial statements of the Office
of the State Attorney, Sixteenth Judicial Circuit, as of and for
the fiscal year ended June 30, 1987, listed on page 10. Our
examination was made in accordance with generally accepted
governmental auditing standards and, accordingly, included such
tests of the accounting records and such other auditing procedures
as we considered necessary in the circumstances .
(12) The values for furniture and equipment and for books are
reported in the General Fixed Assets Account Group on the combined
balance sheet. Individual subsidiary records were incomplete and
control accounts showing the changes in the balances for furniture
and equipment and for books, due to additions and deletions of
property, were not maintained to support the reported values. It
was not practicable in the circumstances to apply alternative
auditing procedures to determine the fairness of the amounts
reported.
( 13) The accompanying financial statements were prepared to
disclose the financial activities of the Office of the State
Attorney in the management of public resources entrusted to the
State Attorney under various provisions of Florida law, as
described in note 1 to the accompanying financial statements.
(14) In our opinion, except for the amounts shown on the
combined balance sheet for the General Fixed Assets Account Group,
as discussed in paragraph 12, the financial statements of the
Office of the State Attorney, Sixteenth Judicial Circuit, for the
fiscal year ended June 30, 1987, are presented fairly in
accordance with the basis of presentation described in note 1,
which basis has been applied in a manner consistent with that of
the preceding year. For the reasons stated in paragraph 12 above,
we do not express an opinion on the General. Fixed Assets Account
Group at June 30, 1987 .
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REPORT ON COMPLIANCE MATTERS
( 15) In accomplishing the various responsibilities for
administration of his Office, the State Attorney is required to
comply with a number of laws relating to financial operations.
Many of these laws govern the specific manner in which financial
operations must be conducted. The State Attorney has the
responsibility to make certain that financial operations are
conducted in the prescribed manner, as well as in the most
economical and efficient manner possible under the circumstances.
( 16) Our examination indicated that the Office of the State
Attorney generally complied with applicable laws, regulations, and
grantor restrictions which might have a material effect on the
accompanying financial statements. Nothing came to our attention
as a result of our examination that caused us to believe that
untested items were not substantially in compliance with
applicable laws, regulations, and grantor restrictions. However,
as disclosed in paragraphs 21 through 40, our examination did note
certain matters which should be addressed by management.
REPORT ON INTERNAL CONTROL
(17 ) The State Attorney is responsible for establishing and
maintaining adequate systems of internal accounting control . In
fulfilling this responsibility, estimates and judgments are
required to assess the expected benefits and related costs of
control procedures. The State Attorney has established internal
accounting controls pertaining to financial reporting, assets,
liabilities, revenues, expenditures, and equity balances. The
objectives of the systems 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.
( 18) As part of our, examination of the financial statements,
we made a study and evaluation of the systems of internal
accounting control pertaining to financial reporting, assets,
liabilities, revenues, expenditures, and equity balances to the
extent we considered necessary to evaluate the systems as required
by generally accepted auditing standards and the standards for
financial and compliance audits contained in the United States
General Accounting Office STANDARDS FOR AUDIT OF GOVERNMENTAL
ORGANIZATIONS, PROGRAMS, ACTIVITIES, AND FUNCTIONS.
( 19) We evaluated these significant systems of internal
accounting control and related classes of transactions to
determine the nature, timing, and extent of the auditing
procedures necessary for expressing an opinion on the financial
statements. Because of inherent limitations in any system of
internal accounting control, errors or irregularities may occur
and not be detected. Also, projection of any evaluation of the
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systems to future periods is subject to the risk that procedures
may become inadequate because of changes in conditions, or that
the degree of compliance with the procedures may deteriorate.
Accordingly, we do not express an opinion on the systems of
internal accounting control taken as a whole. However, our study
and evaluation disclosed control deficiencies that we believe
result in more than a relatively low risk that errors and
irregularities may occur and not be detected within a timely
period. These control deficiencies were considered in determining
the nature, timing, and extent of audit tests to be applied in our
examination of the financial statements. Consequently, except for
the effects of control deficiencies relating to the records of
general fixed assets, which are described in paragraphs 32 through
36, the control deficiencies described in the following paragraphs
do not affect our opinion on the fairness of the Office' s
financial statements.
FINDINGS AND RECOMMENDATIONS
(20) Our detailed findings and related recommendations
concerning the adequacy and effectiveness of systems of accounting
and administrative control and concerning compliance with
applicable laws and regulations are presented below.
Personnel and Payroll Administration
(21) The Office of the State Attorney employed 42 full-time
employees and 3 part-time employees at June 30, 1987 .
Expenditures for salaries and fringe benefits totaled
$1,364, 761. 40 during the 1986-87 fiscal year. An adequate system
of internal accounting and administrative control should provide
that the duties for payroll relating to record keeping, processing
payroll changes, and for handling or distributing the actual
payroll warrants are kept separate to the extent possible with
existing personnel .
(22 ) Duties relating to personnel and payroll functions were
not adequately separated among employees to reasonably ensure
detection of unauthorized salary_payments in a timely, manner.
Additionally, temporary and part-time employees' time sheets were
not approved by the employees' immediate supervisors.
(23) Our review of the Office' s internal controls over
personnel and payroll functions disclosed that the Executive
Director maintained personnel files, approved personnel action
change requests, and received payroll warrants prior to
distribution. Additionally, weekly time sheets for part-time and
temporary employees (Other Personal Services) were not signed by
the employees' immediate supervisors to indicate review and
approval . The performance of the incompatible duties of record
maintenance, payroll change approval, and warrant distribution by
one employee, and the submission of weekly time sheets without
evidence of supervisory review, increases the risk that an
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unauthorized salary warrant may be issued and negotiated and not
be detected in a timely manner.
(24) Although audit tests of payroll transactions did not
disclose any instances of unauthorized salary warrants,
we recommend that the incompatible duties of record keeping,
payroll change approval, and handling of payroll warrants be
separated to the extent possible. Employees' weekly time sheets
for part-time and temporary employees should be signed by the
employees' immediate supervisors to indicate review and approval .
(25) Approved leave requests, evidencing approval for leave
taken, were not always available.
(26) Section 3 .02(2) of the Florida Prosecuting Attorneys
Association Classification and Pay Plan states, in part, that "The
granting of any leave of absence with or without pay shall be in
writing and shall be approved by the proper authority within the
State Attorney' s Office. " Section 3 .02(3) of the Florida
Prosecuting Attorneys Association Classification and Pay Plan
further provides that "Any leave of absence with or without pay
shall be approved prior to the leave being taken, except in the
case of an emergency . . . Leave requests, showing prior
supervisory approval, were not available for the sample of
employee Attendance and Leave Reports selected for testing.
(27) Approved leave requests corroborate leave taken as
indicated on the employees' monthly Attendance and Leave Reports.
In the absence of the approved leave requests, we were unable to
verify that leave taken was properly posted to the employees'
monthly Attendance and Leave Reports and to the employees'
cumulative leave records. Procedures should be strengthened to
ensure leave requests are retained to support leave taken as shown
on employees' Attendance and Leave Reports and to document
compliance with Sections 3 . 02(2 ) and 3 .02(3) of the Florida
Prosecuting Attorneys Association Classification and Pay Plan.
Procurement
(28) Vendors were generally not furnished written purchase
orders showing descriptions and quantities ofgoods to be supplied
or the nature and extent of services to be provided.
(29) Office of the State Attorney records indicated that
goods and services of approximately $144, 697 were purchased during
the 1986-87 fiscal year. Our review of purchases of goods and
services disclosed that purchases were not supported with purchase
orders. Written purchase orders evidence the review and approval
by appropriate employees of vendor selection and purchase terms
and provide an accountable record which can be used to control and
limit expenditures to amounts appropriated. Although our tests
disclosed no improper expenditures, we recommend the Office of the
State Attorney utilize written purchase orders to authorize the
purchase of goods and services.
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(30) Contrary to Section 5. 1 of the State Attorney Purchasing
Rules, the inspection and acceptance of goods_and services was not
always evidenced by the signature of the individual accepting
delivery of goods and services.
(31) Section 5. 1 of the State Attorney Purchasing Rules
requires the individual accepting the delivery of goods (or
services) to sign and date the receipt. Although voucher files
included documentation as to when goods or services were received,
the signature of the individual receiving the goods and services
was not recorded for 4 of 17 (23 percent) items tested. The
acceptance and inspection of goods and services should be properly
documented. In the event of a dispute over the quality or
quantity of goods and/or services, it is essential that the
identity of the employee receiving the goods or services is known.
We recommend that the Office of the State Attorney require the
signature of the individual accepting delivery of goods or
completion of services to document verification of the quantity
and quality of goods and services received and to comply with
Section 5 . 1 of the State Attorney Purchasing Rules.
Tangible Personal Property
(32) Tangible personal.property_ records were not adequate to
substantiate the amounts reported on the financial statements for
furniture and equipment and for books.
(33) Chapter 273, Florida Statutes, requires, in part, that a
State agency shall record, in its tangible personal property
records, tangible personal property considered nonexpendable and
nonconsumable, which costs $200 or more ($100 or more through
September 30, 1987) , and with a normal expected life of one year
or more, and hardback-covered bound books, the value of which is
$25 or more. This Chapter and Section 10.300, Rules of the
Auditor General for State-Owned Tangible Personal Property,
provide internal controls, records, and procedures to account for
tangible personal property.
(34) Chapter 273, Florida Statutes, provides that an adequate
record of property shall be maintained, and that the record shall
contain such information as shall be required by the Auditor
General . Section 10. 310(4) , Rules of the Auditor General for
State-Owned Tangible Personal Property, provides that the property
record should contain, among other information, the cost or value
of the property item, the date and from whom the item was
acquired, the acquisition voucher number, and the current
condition of the item. Additionally, Section 10.310(8) , Rules of
Auditor General for State-Owned Tangible Personal Property,
requires that donations be recorded at fair market value or a
reasonable and equitable estimate of such value on the date of
acquisition. Our examination disclosed that property records
maintained for furniture and equipment were incomplete.
Information such as cost or value, voucher number, and/or date of
acquisition was not indicated for many of the items. Property
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records were not maintained for books and property records did not
disclose the estimated value at date of acquisition for 13 motor
vehicles obtained by the Office of the State Attorney by donation
or forfeiture. In addition, the Office of the State Attorney had
not established the custodian-wide control account required by
Section 10.310(5) , Rules of the Auditor General for State-Owned
Tangible Personal Property.
(35) The Office reported a value of $169, 293 on the financial
statements at June 30, 1987, for general fixed assets including
$165,293 for furniture and equipment and $4,000 for books. In the
absence of proper control accounts and adequate individual
property records, we were unable to determine the fairness of the
value of furniture and equipment and of books reported in the
General Fixed Assets Account Group on the combined balance sheet.
(36) Detailed property records provide managerial information
for purposes of insurance, retirement, or replacement of existing
property as well as for control of property in use. The Office
should take the steps necessary to complete and maintain
individual property records of State-owned property in accordance
with Chapter 10.300, Rules of the Auditor General for State-Owned
Tangible Personal Property. We recommend that the Office of the
State Attorney establish a custodian-wide control account, and
based on documentary evidence available, establish a value for all
fixed assets. The value should be recorded in the subsidiary
records which should be reconciled to appropriate fixed assets
control accounts, and to annual physical inventories.
Motor Vehicle Use
(37) The vehicle usage records maintained by the Office of
the State Attorney did not adequately document the purpose for
which vehicles assigned to employees on a 24-hour basis were used.
(38) The Office of the State Attorney had 13 State-owned
vehicles, obtained by the State through donation or forfeiture,
assigned to the Office as of March 31, 1988. Eight vehicles were
assigned to employees on a full-time basis (i .e. , they were parked
at the employees' homes overnight and on weekends) . We were
informed that the justification for the full-time assignments was
that the persons to whom the vehicles were assigned were subject
to call 24 hours a day.
(39) We requested vehicle usage records from Office personnel
for the vehicles assigned to employees on a full-time basis. We
were advised that for two of the vehicles, no vehicle usage
records were available. The vehicle usage records provided for
the other six vehicles disclosed that the purpose of the travel,
point of origin, and point of destination were frequently not
provided. In the absence of sufficient information as to vehicle
use in the official records, we could not determine if vehicles
were used for the purposes authorized.
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(40) While many aspects of the operations of the State
Attorney' s Office are confidential in nature, the Office should
maintain vehicle logs documenting the public use of the vehicles.
STATEMENT FROM AUDITED OFFICIAL
(41) In accordance with the provisions of Section
11.45(6) (d) , Florida Statutes, a list of audit findings was
submitted to the Office of the State Attorney, Sixteenth Judicial
Circuit. The State Attorney' s written response to the audit
findings included in this report is shown as exhibit E.
EXHIBITS
The following exhibits are attached to and form an
integral part of this report:
EXHIBIT - A Combined Balance Sheet - Governmental Fund Type and
Account Groups.
EXHIBIT - B Statement of Revenues, Expenditures, and Changes in
Fund Balance - Governmental Fund Type.
EXHIBIT - C Statement of Revenues and Expenditures - Budget and
Actual (Budgetary Basis) - Governmental Fund Type.
EXHIBIT - D Notes to Financial Statements.
EXHIBIT - E Statement from Audited Official .
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OFFICE OF THE STATE ATTORNEY EXHIBIT - A
SIXTEENTH JUDICIAL CIRCUIT
COMBINED BALANCE SHEET -
GOVERNMENTAL FUND TYPE AND ACCOIMT GROUPS
Jinx 30, 1987
Governmental Account Groups Total
Fund Type General General Memorandum
General Fixed Long-Term Only)
Assets Debt
ASSETS
Cash in Bank $ 3,050.00 0 0 $ 5,050.00
Cash in State Treasury 932.14 932.14
Appropriation Balances 23,449.01 23,449.01
Due from Other Governmental Units 4,107.66 4,107.66
Prepaid Expense 9,861.11 9,861.11
Books 4,000.00 4,000.00
Furniture and Equipment 165,293.00 165,293.00
Amount to be Provided for Compensated
Absences 123,021.23 123,021.23
TOTAL ASSETS NC OFFER DEBITS O41,599.92 $169,293.00 $123,021.23 $333,714.15
LIABILITIES NRI FIIN EQUITY
Liabilities:
Accounts Payable $11.741.43 0 0 $ 11,741.43
Salaries and Benefits Payable 250.29 250.29
Due to State General Revenue Fund 3,050.00 3,050.00
Liability for Compensated
Absences 123,021.23 123,021.23
Total Liabilities 15,041.72 123,021.23 138,062.95
Fin
d Equity:
Investment in General Fixed
Assets 169,293.00 169,293.00
Fund Balances:
Reserved for Encumbrances 12,467.76 12,467.76
Unreserved 13,890.44 13,890.44
Total Fund Equity 26,358.20 169,293.00 195,651.20
TOTAL LIABILITIES NO FUN EQUITY 041,399.92 $169,293.00 $123,021.23 $333,714.15
The accompanying notes to the financial statements are an integral part of this statement.
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EXHIBIT - B OFFICE OF THE STATE ATTORNEY
SIXTEENTH JUDICIAL CIRCUIT
STATEMENT OF REVENUES, EXPENDITURES>
AND CHANGES IN FUND BALANCE - OOVERNPENTAL FUND TYPE
For the Fiscal Year Ended June 30, 1987
General
Fund
Revenues: 49
Stale Appropriationsa 81 00
, 1542,.0049..00
Aswan! Reverted — - es
Appropriations Used 1,534,967.15
Intergovernmental Revenues: 111,150.00
Canty Support
Charges for Services: 24,619.98
Contractural Services
Total Revenues _1.670,757.13
Expenditures:
Current Operations:
Salaries and Benefits 1,364,761.40
Other Personal Services 20,595.98
Expenses 246,216.47
Special Categories:Salary Incentive Payments 5.625.48 5,625.4
State Attorneys - Law Library
4
Capital Outlay: 6,203.22
Operating Capital Outlay
Operating Capital Outlay Expenditures Paid from
Prior Year Appropriations 2,260_75
Total Expenditures 1,646,830.54
Excess of Revenues Over E,peditevs 23,906.59
Fund Balance, July 1. 1986 - __ 2,451.61
Fund Balance. June 30. 1907 8 26,356.20
The accompanying notes to the financial statements are an integral part of
this statement.
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OFFICE OF THE STATE ATTORNEY EXHIBIT - C
SIXTEENTH JUDICIAL CIRCUIT
STATEMENT OF REVENUES AND EXPENDITURES -
BUDGET AND ACTUAL IBIABETARY BASIS) - GOVERNMENTAL FIND TYPE
For the Fiscal Year Ended June 30, 1987
General
Budget Actual Variance -
Favorable
Unfavorable)
Revenues:
State Appropriations $1,542,049.00 $1,542049.00 9
Amount Reverted 17,081.851 17,081.851
Appropriation Used 1,542,049.00 1,534,967.15 17,081.851
Charges for Services:
Contractures' Services 31,323.00 24,619.98 16,703.02)
Revenues
Total 1,573,372.00 1,559,587.13 113,784.871
Expenditures:
Current Operations:
Salaries and Benefits 1,374,890.00 1,364,761.40 10,128.60
Other Personal Services 21,200.00 20,595.98 604.02
Expenses 157,885.00 152,011.50 5,873.44
Special Categories:
Salary Incentive Payments 5,929.00 5,625.48 303.52
State Attorneys - Law Library 1,881.00 1,167.24 713.76
Capital Outlay:
Operating Capital Outlay 11,587.00 11,587.00
Total E,eaditass 1,573,372.00 1,555,748.60 17,623.34
Excess of Revenues Over E9peditaes $ $ 3,838.47 $ 5,838.47
The accompanying notes to the financial statements are an integral part of this statement.
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EXHIBIT - D OFFICE OF THE STATE ATTORNEY
SIXTEENTH JUDICIAL CIRCUIT
NOTES TO FINANCIAL STATEMENTS
June 30, 1987
1 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following summary of the Office of the State
Attorney' s significant accounting policies is presented to assist
the reader in interpreting the financial statements. These
policies should be viewed as an integral part of the accompanying
financial statements.
A. Reporting Entity
The State Attorney of the Sixteenth Judicial Circuit is
1 of 20 such State Attorneys, each elected to serve a
judicial circuit within the State as provided by Article V,
Section 17, of the Constitution of the State of Florida.
Each State Attorney is considered a separate financial unit
of the State of Florida that is financially dependent upon
appropriations from the State Legislature. Each
State Attorney is responsible for the day-to-day fiscal
operation of his or her office and, accordingly, each
prepares separate financial statements relating to their
respective financial operations. The Sixteenth Judicial
Circuit consists of Monroe County. The State Attorney of the
Sixteenth Judicial Circuit is responsible for performing
certain duties, as provided in Chapter 27, Part I, Florida
Statutes, in Monroe County.
B. Basis of Presentation
The financial accounts of the Office of the State
Attorney included in the accompanying financial statements
were combined by the State Comptroller with the accounts of
other State agencies and included in the general purpose
financial statements of the State of Florida as of and for
the fiscal year ended June 30, 1987, in accordance with
generally accepted accounting principles and financial
reporting requirements promulgated by the Governmental
Accounting Standards Board. The accompanying financial
statements represent only a portion of the financial
statements of the reporting entity of the State of Florida as
a whole.
C. Fund Accounting
The Office of the State Attorney' s accounting systems
are organized on the basis of funds and account groups, each
of which is considered a separate accounting entity. A fund
is an accounting entity having a separate set of
-14-
OFFICE OF THE STATE ATTORNEY EXHIBIT - D
SIXTEENTH JUDICIAL CIRCUIT (Continued)
NOTES TO FINANCIAL STATEMENTS
June 30, 1987
self-balancing accounts for recording assets, liabilities,
fund equity, revenues, expenditures, and other financing
sources and uses, which is segregated for a specific function
or activity. Descriptions of the funds included in the
financial statements in this report are as follows:
GOVERNMENTAL FUND TYPE
General Fund - This fund is used to account for all
financial resources available for operation of the
Office except those required to be accounted for in
another fund.
ACCOUNT GROUPS
General Fixed Assets Account Group - This group is used
to establish accounting control for general fixed
assets. General fixed assets are usually acquired with
resources of governmental fund types and used in
association with activities of those funds.
General Long-Term Debt Account Group - This group is
used to establish accounting control for long-term debts
and other long-term obligations of governmental fund
types not paid with current resources.
The account groups are not funds. They consist of
self-balancing sets of accounts and are concerned only
with the measurement of financial position. They are
not involved with measurement of results of operations.
D. Basis of Accounting
Basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in
the financial statements. Basis of accounting relates to the
timing of the measurements made regardless of the measurement
focus applied.
Governmental fund types are accounted for using the
modified accrual basis of accounting. Their revenues, except
for certain grant revenues, are recognized when they become
measurable and available. When grant terms provide that the
expenditure of funds is the prime factor for determining
eligibility for grant funds, revenue is recognized at the
time the expenditure is made. Under the modified accrual
basis of accounting, expenditures are generally recognized
when the related fund liability is incurred. Exceptions to
-15-
EXHIBIT - D OFFICE OF THE STATE ATTORNEY
(Continued) SIXTEENTH JUDICIAL CIRCUIT
NOTES TO FINANCIAL STATEMENTS
June 30, 1987
this general rule include: (1) accumulated vacation and sick
leave payments are charged to expenditures when used rather
than when earned; and (2 ) interest on general long-term debt
is recognized as expenditures when due.
E. Budgetary Accounting and_Reporting
The Office of the State Attorney follows these
procedures in the adoption, amendment, and reporting of
budgets and budgetary data:
1 . Budgets are to be prepared and submitted to the
Legislature and the Executive Office of the Governor on
a biennial basis in the form and manner prescribed by
Chapter 216, Florida Statutes.
2 . Limited transfers of expenditure authority may be made
by the Office of the State Attorney. Transfers in
excess of the limitations established by Section
216.292(2) , Florida Statutes, must be approved by the
Administration Commission pursuant to Section
216. 292(3 ) (a) , Florida Statutes.
3 . Budgetary information is integrated into the accounting
system.
4. Pursuant to Chapter 216, Florida Statutes, annual
appropriations to the Office of the State Attorney are
to be used to fund: ( 1) authorized expenditures
incurred during the current fiscal. year; (2)
encumbrances outstanding at year-end which were approved
by the Executive Office of the Governor for liquidation
in the subsequent year; and (3 ) any legal, due, and
unpaid obligations relating to prior year appropriations
which have lapsed.
Actual data presented on exhibit B of this report was
determined in accordance with the basis of accounting
described above (note 1.D. ) and includes authorized
expenditures incurred during the fiscal. year. The budgetary
basis for revenue and expenditures as presented on exhibit C
of this report is determined in accordance with the budgetary
authority granted to State agencies pursuant to Chapter 216,
Florida Statutes. County support was not included in the
approved budget and is therefore not shown on exhibit C.
The accompanying Statement of Revenues and Expenditures
- Budget and Actual (Budgetary Basis) - Governmental Fund
-16-
OFFICE OF THE STATE ATTORNEY EXHIBIT - D
SIXTEENTH JUDICIAL CIRCUIT (Continued)
NOTES TO FINANCIAL STATEMENTS
June 30, 1987
Type presents comparisons of the legally adopted budget with
actual data on a budgetary basis. Because the accounting
principles applied for the purpose of developing revenues and
expenditures on a budgetary basis differ in certain respects
from those used to present financial statements in conformity
with the basis of accounting described in note 1.D. above, a
reconciliation of the differences in the excess of revenues
over expenditures at June 30, 1987, for these two bases is
presented below:
General Funds
Excess of Revenues Over Expenditures,
Budgetary Basis, Exhibit C $ 3, 838.47
Amount of Certifications Forward for
Encumbrances to be Liquidated in 1987-88 12, 467.76
Prepaid Expenditures to be Liquidated
in 1987-88 9,861 . 11
Expenditures Paid from Prior Year
Appropriations (2,260. 75)
Excess of Revenues Over Expenditures,
Exhibit B $23,906.59
F. Fixed Assets and Depreciation
Expenditures for general fixed assets are reported in
the General Fund at the time of purchase. The assets so
acquired are capitalized ( recorded) at cost in the General
Fixed Assets Account Group. Depreciation is not recorded on
general fixed assets.
G. Compensated Absences
Compensated absences, i . e. , paid absences for employee
vacation and sick leave, are recorded in the General Fund as
expenditures when used or when accrued as a current payable
to employees entitled to cash payment in lieu of taking leave
when accrued. The liability for compensated absences that
exceeds the current payable recorded in the General Fund at
year-end is reported in the General Long-Term Debt Account
Group and is not recorded as an expenditure.
• Changes in general long-term obligations for the current
year are reported in a subsequent note.
-17-
EXHIBIT - D OFFICE OF THE STATE ATTORNEY
(Continued) SIXTEENTH JUDICIAL CIRCUIT
NOTES TO FINANCIAL STATEMENTS
June 30, 1987
H. Total Column on the Combined Balance Sheet
The total column on exhibit A is captioned "Memorandum
Only" to indicate that it is presented only to facilitate
financial analysis. Data in this column does not present
financial position in conformity with generally accepted
accounting principles. Neither is such data comparable to a
consolidation.
2 . CHANGES IN GENERAL LONG-TERM OBLIGATIONS
Changes in general long-term obligations are shown
below:
Description Balance Additions Deletions Balance
7-1-86 6-30-87
Liability for
Compensated Absences $117,983.79 $5,037.44 i-- $123,021.23
Inasmuch as records kept for compensated absences relate
only to hours earned, used, and available, only the net change in
Liability for Compensated Absences is shown for the current fiscal
year.
3 . RESERVE FOR ENCUMBRANCES
Encumbrances are commitments for the expenditure of
money in the form of purchase commitments and contracts.
Encumbrances outstanding at June 30 have been reported as a
reservation of fund balance to represent the estimated amount of
expenditures likely to result if executory contracts for goods or
services at fiscal year-end are completed.
4. INTERGOVERNMENTAL REVENUE - COUNTY SUPPORT
Monroe County provided services to the Office of the
State Attorney as required by Section 27.34(2 ) , Florida Statutes.
These services consisted of office space, utilities, custodial
services, and telephone services. In addition, other support as
itemized in Section 27. 34(2) , Florida Statutes, was provided by
the county. Information as to the value of this support is
reported to the Office of the State Attorney by the contributing
county and is reported as both revenue and expenditures on exhibit
B in the General Fund.
-18-
OFFICE OF THE STATE ATTORNEY EXHIBIT - D
SIXTEENTH JUDICIAL CIRCUIT (Continued)
NOTES TO FINANCIAL STATEMENTS
June 30, 1987
5. STATE RETIREMENT PROGRAM
The Office of the State Attorney does not administer a
separate retirement fund for its employees. However, pursuant to
law, the State Attorney and salaried employees are members of a
defined benefit, noncontributory retirement plan administered by
the Department of Administration, Division of Retirement. The
plan provides for retirement, death, and disability benefits and
requires payments into the fund by participating agencies at
stated percentages of compensation set by law as determined from
time to time by the State Legislature. In fiscal year 1986-87,
the Office paid $143, 415.07 into the State Retirement Fund on
behalf of the State Attorney and his employees. The plan' s
accounting and funding policies, actuarial present value of
accumulated plan benefits, net assets available for benefits, and
other plan-related matters are the responsibility of the
Department of Administration, Division of Retirement, and are not
computed on an individual agency basis.
6. STATE INSURANCE PROGRAMS
State employees may elect to participate in group health
insurance programs administered by the Department of
Administration. Coverage is provided through insurance plans
funded by State appropriations and provides health insurance
benefits for participating employees and their dependents.
Additional information concerning program-related matters may be
obtained from the Department of Administration.
Pursuant to Chapter 284, Florida Statutes, the
Department of Insurance administers limited self-insurance
programs against various specified risks. The Office of the
State Attorney participated in the self-insurance programs and
paid premium amounts as established by the Department of
Insurance. Additional information concerning the self-insurance
programs of the State may be obtained from the Department of
Insurance.
7. STATE DEFERRED COMPENSATION PLAN
Office of the State Attorney employees participated in
the State of Florida' s deferred compensation plan created in
accordance with the Internal Revenue Code, Section 457. The plan,
available to all State employees, permits them to defer a portion
of their salary until future years. The deferred compensation is
not available to employees until termination, retirement, death,
or unforeseeable emergency.
-19-
EXHIBIT - D OFFICE OF THE STATE ATTORNEY
(Continued) SIXTEENTH JUDICIAL CIRCUIT
NOTES TO FINANCIAL STATEMENTS
June 30, 1987
All amounts of compensation deferred under the plan, all
property and rights purchased with those amounts, and all income
attributed 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 State (without being restricted to the
provisions of benefits under the plan) , subject only to the claims
of the State' s general creditors. Participants' rights under the
plan are equal to the fair market value of the deferred account
for each participant.
The plan' s accounting and funding policies, net assets,
and other plan-related matters are the responsibility of the State
Treasurer and were included by the State Comptroller in the
general purpose financial statements of the State of Florida as of
and for the fiscal year ended June 30, 1987 . The State 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
State believes that it is unlikely that it will use the plan
assets to satisfy the claims of general creditors in the future.
8. DUE FROM OTHER GOVERNMENTAL UNITS
The nature of amounts due from other governmental units
is as follows:
General Fund:
United States Department of Justice:
State Department of Labor and
Employment Security $3,097 . 19
Monroe County Board of County
Commissioners:
Reimbursement for Disposition Costs
Pursuant to House Bill 1023 1, 010. 47
Total Due from Other Governmental Units $4, 107 .66
-20-
THIS PAGE IS INTENTIONALLY LEFT BLANK.
-21-
EXHIBIT - E OFFICE OF THE STATE ATTORNEY
SIXTEENTH JUDICIAL CIRCUIT
STATEMENT FROM AUDITED OFFICIAL
For the Fiscal Year Ended June 30, 1967
*fair CAtiurnen
SIXTEENTH JUDICIAL CIRCUIT OF FLORIDA
302 FLEMING STREET
PO BOX 1066
KEY WEST. FLORIDA 330411086
Yp, August 29, 1988 TELEPHONE
\CIw'� 294-5165
KIRK C ZUELCH
Mr. Charles L. Lester
Auditor General
Audit P. O. Box 1735
Report Tallahassee, FL 32302
Par.
No. Dear Mr. Lester:
I have reviewed your preliminary findings and recommendations and am glad
to have the opportunity to respond; but, first, I would like to commend Philip
Ciano and his staff for conducting the audit efficiently and professionally with
a minimum of disruption to our daily operations.
(22-27) Beginning with the May payroll, the receiving and distribution of the
regular payroll checks was assigned to the Executive Director's assistant.
Weekly time sheets for temporary and part-time employees are now being checked
for a supervisor's approval to indicate review for payment.
It has always been the policy of this office to have non-emergency leave
approved in advance. However, it appeared that not all employees were attaching
their approvals to their time sheets for back up. Supervisors have been
encouraged to require the leave approvals to be with the time sheets when they
come to them for final review. The Executive Director has been double checking
during the recording process for attached approvals. In some cases, an employee
will have more leave approved than is actually taken; in these cases the
supervisor's signature on the time sheet is the authorization to deduct leave as
recorded.
(28-31) The office is now using a basic purchase order which is pre-numbered for
expenditures. In addition, a new stamp was ordered for use on invoices which
requires a signature and date for: "ordered by, received by, and approved by."
(32-36) The Executive Director and her Assistant spent many hours during the past
year trying to compile all tangible personal property records for the office.
Physical inventories at all locations were taken at the end of June, and we
believe those records are now accurate and complete. Procedures have also been
put into effect to make sure that all new purchases are recorded properly.
-22-
OFFICE OF THE STATE ATTORNEY EXHIBIT - E
SIXTEENTH JUDICIAL CIRCUIT (Continued)
STATEMENT FROM AUDITED OFFICIAL
For the Fiscal Year Ended June 30, 1987
Audit Page 2
Report Mr. Charles L. Lester
Par. August 29, 1988
No.
The Vehicle Mileage Logs have been revised to include a "purpose" column
(32-36) for travel in State-owned vehicles. All employees have been provided with
J_ log forms and will be using them to record all mileage in the State cars.
Sincerely,l
Kirk C.(Zuelch
State Attorney
DC
cc: Philip Ciano, C.P.A.
-23-
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