Report No. 10316, School Board 10316
STATE OF FLORIDA
OFFICE OP THE AUDITOR GENERAL
di tHE sto„
Z`TA;�i it %
litty
4.00b ws.13
44
*** REPORT ON AUDIT ***
OF THE
MONROE COUNTY
DISTRICT SCHOOL BOARD
FOR THE FISCAL YEAR ENDED JUNE 30, 1982
10316
STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
REPORT ON AUDIT
OF THE
MONROE COUNTY
DISTRICT SCHOOL BOARD
FOR THE FISCAL YEAR ENDED June 30, 1982
DATED: DECEMBER 21, 1983
00"E 4�
k STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
ERNEST uuso",e.P.A.
Tallahassee, Florida
AUDITOR GENERAL December 21, 1983
The President of the Senate, the Speaker of the
House of Representatives, and the
Legislative Auditing Committee
Pursuant to the provisions of Section 11.45, Florida
Statutes, I have directed that an audit be made of the
MONROE COUNTY
DISTRICT SCHOOL BOARD
For the Fiscal Year Ended June 30, 1982,
and present this report thereon.
Par.
No.
PERSONNEL
( 1 ) Board members and the Superintendent of Schools serving
during the audit period are shown in the following tabulation:
District
No.
Robert R. Padron from 10-9-81 1
Joseph T. Thompson, Jr. , Member
and Vice-Chairman to 7-1-81 1
E. H. "Johnny" Walker, Vice-Chairman
from 11-16-81 2
Gerald E. Adair 3
Roger L. Swift, Chairman 4
Ruth Alice Campbell 5
Dr. Armando J. Henriquez, Superintendent
1
Par.
No.
SCOPE AND OPINION
(2) We have examined the combined financial statements of the
Monroe County District School Board as of and for the fiscal year
ended June 30, 1982, listed on page 14. Except as disclosed in the
following paragraph, our examination was made in accordance with
generally accepted auditing standards and, accordingly, included such
tests of the accounting records and such other auditing procedures as
we considered necessary in the circumstances.
(3 ) A substantial portion of the revenue from local sources of
the Special Revenue Funds, $808, 488. 66, resulted from cash sales of
food by school cafeterias to students, faculty, and staff. Because
adequate internal controls had not been established over these cash
sales, it was not practicable to satisfy ourselves with respect to
such revenues beyond amounts reported as received.
(4) The Board is required by State Board of Education Rule
6A-1 . 87, Florida Administrative Code, to provide for audits of school
and activity funds commonly called the internal funds. Accordingly,
our examination did not extend to the internal funds reported as
Expendable Trust Funds on the accompanying financial statements.
(5) In our opinion, except for the effects, if any, of the '
matters discussed in paragraph 3 above, relating to revenue from local
sources of the Special Revenue Funds, the combined financial
statements referred to above, except for the Expendable Trust Funds,
present fairly the financial position of the Monroe County District
School Board at June 30, 1982 , and the results of its financial
operations for the fiscal year then ended, in conformity with
generally accepted accounting principles applied on a basis consistent
with that of the preceding year. We did not audit the internal funds,
and, accordingly, we do not express an opinion on the Expendable Trust
Funds presented on the accompanying financial statements.
FINANCIAL MANAGEMENT
(6) The Board is responsible for managing the District' s
resources in accordance with the requirements imposed by various laws,
State Board of Education rules, contract restrictions by grantors, and
good business practices. Applicable laws, rules, and grantor
guidelines define, among other matters, the purposes for which
resources may be used and the manner in which authorized uses shall be
accomplished and documented. These requirements address such diverse
matters as personnel qualifications and compensation, the purchase of
goods and services, the control of acquired assets, and the reporting
of financial activity to the Legislature and to various State and
Federal agencies.
(7) To assure the efficient and effective operation of the
District School System in accordance with applicable legal and
contractual requirements, adequate systems of accounting control must
be established and maintained. The Superintendent is responsible for
maintaining adequate systems of internal accounting control. In
2
Par.
No.
fulfilling this responsibility, estimates and judgments are required
to assess the expected benefits and related costs of control
procedures. The objectives of the systems are to provide reasonable,
but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition and that transactions are
executed in accordance with the Board' s authorization and recorded
properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles.
(8) 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 systems to future
periods is subject to risk that procedures may become inadequate
because of changes in conditions or that the degree of compliance with
the procedures may deteriorate.
(8) The Board has established internal accounting controls
pertaining to financial reporting, assets, liabilities, revenues,
expenditures, and equity balances. As part of our examination of the
accompanying combined financial statements, we made a study and
evaluation of the systems of internal accounting control 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.
(10) 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 accompanying combined financial
statements. 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 could
result in errors or irregularities which would 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 food
service collections, the control deficiencies described in succeeding
paragraphs do not affect our opinion on the fairness of the Board' s
financial statements.
( 11) Our detailed findings concerning the adequacy of systems of
internal accounting control and compliance with applicable legal and
contractual requirements are presented under appropriate subheadings.
Financial Reporting and Record Systems
(12) As provided by State Board of Education Rule 6A-1.01,
Florida Administrative Code, the Superintendent is responsible for
keeping adequate records and accounts of all financial transactions in
the manner prescribed by the Commissioner of Education in the
publication, A MANUAL. . .FINANCIAL AND PROGRAM COST ACCOUNTING AND
REPORTING FOR FLORIDA SCHOOLS. Additionally, reports are required to
3
Par.
No.
be filed with the State Department of Education relating to annual
financial operations, student enrollment, and various other subjects
containing such information as may be prescribed by the Commissioner.
( 13 ) The accounting system used by the Board generally followed
that prescribed by the Department of Education' s publication, A
MANUAL. . . FINANCIAL AND PROGRAM COST ACCOUNTING AND REPORTING FOR
FLORIDA SCHOOLS. The funds and basis of accounting used by the Board
and other applicable information are shown in the accompanying summary
of significant accounting policies (see note 1 to the financial
statements) .
( 14) Financial Reports. In accordance with Section
230.23 (11) (b) , Florida Statutes, and State Board of Education Rule
6A-1. 071, Florida Administrative Code, the Board' s annual financial
report for the fiscal year 1981-82, which included the related cost
analysis reports required by Section 237 . 34, Florida Statutes, was
filed with the Commissioner of Education.
( 15) The Food Service Special Revenue Interim Report for the 12-
month period ended June 30, 1982, was prepared by Board personnel and
submitted to the State Department of Education.
( 16) Record Systems. The minutes of the Board meetings were
generally well kept in accordance with the provisions of Section
230.23( 1) , Florida Statutes. The minutes were retained on file in the
Superintendent' s office and were available for public inspection as
required by Section 286.011, Florida Statutes.
( 17) The financial records were generally adequate to account for
detail transactions and to provide managerial information and audit
trails. The results of our detail audit tests indicated that
transactions were properly supported, classified, and recorded in the
Board' s financial accounting records.
( 18) Batch summary sheets used for recording transactions,
including journal voucher entries, to the financial accounts did not
contain evidence of review and approval by appropriate supervisory
personnel . Similar deficiencies were also noted in audit reports Nos.
9839, paragraph 41, and 10138, paragraph 36. During the course of
this examination, the Assistant Director of Finance advised us that
procedures were established during the 1982-83 fiscal year which
provided for the review and approval of all batch summary sheets by
appropriate supervisory personnel. A review of files containing
1982-83 fiscal year batch summary sheets indicated that the review and
approval procedures were instituted in March 1983. This review and
approval should aid in the detection of errors and help prevent
unauthorized financial transactions.
( 19) A perpetual inventory system was used to account for the
inventories at the stores and distribution warehouse, maintenance
department, transportation department, and school food service
department. Our review of internal controls over these inventories
during fiscal year 1981-82 disclosed the following departures from
acceptable internal control practices:
A
Par.
No.
o Persons responsible for maintaining perpetual inventory
records participated in the counting of inventory items
during the annual physical inventory at the stores and
distribution warehouse, maintenance department, and
transportation department.
o Persons having physical custody of the inventories also
maintained the perpetual inventory records at the stores
and distribution warehouse, maintenance department, and
transportation department.
o Adjustments to perpetual inventory records and
corresponding inventory control accounts were not
reviewed and approved of record by a Board employee not
associated with maintaining the perpetual inventory and
control account records.
Similar internal control deficiencies were also noted in audit report
No. 10138, paragraph 37. Corrective actions taken by Board personnel
subsequent to the 1981-82 fiscal year included reassigning the
responsibility for maintaining the stores and distribution warehouse
perpetual inventory records to someone not having physical custody of
the inventory. Written inventory instructions for the 1982-83 annual
physical inventories indicated that persons responsible for
maintaining perpetual inventory records or persons having physical
custody of the inventories would not participate in the counting of
inventory items. We were also advised by the Director of Maintenance
and Transportation and the Director of School Food Service and
Purchasing that all adjustments resulting from the 1982-83 annual
physical inventories would be properly reviewed and approved. These
corrective actions, if fully implemented, will help detect any
unauthorized removal of stock items from the Board' s warehouses. The
effectiveness of these corrective actions will be reviewed and
reported during our next audit of the Board' s operations.
(20) Although requested from Board personnel, we were not
provided with complete detail lists at June 30, 1982, of individual
items to support balances in the General Fund accounts receivable
($64, 613 .92 ) , due from other agencies ($18,561 .40) , accounts payable
($78,811 . 60) , payroll deductions a able - in
surance y nsu rance 22 945.(S . 99) and
employee miscellaneous payroll deductions payable ( $9, 759 .86) . These
accounts were supported only by general ledger account cards which
included all transactions recorded in an account from the inception of
that account and, consequently, included both closed and outstanding
account transactions. Transactions recorded to the accounts are
recorded in summary form and, therefore, Board personnel cannot,
without extensive analysis of detailed records, identify the
individuals or firms whose accounts comprised the balances reported.
Detailed listings of individual items comprising account balances are
necessary for verification of account balances without the excessive
use of employee effort. Such listings also permit management review
of the status of outstanding items. Although the amounts recorded
5
Par.
No.
were not material to the financial position of the Board and in most
instances were cleared as evidenced by our subsequent tests of
transactions, the Board should periodically prepare appropriate detail
lists identifying the composition of outstanding balances.
(21) Audit tests indicated that the management and records of
tangible personal property generally complied with the provisions of
Chapter 274, Florida Statutes, and the rules issued pursuant thereto.
(22 ) We were advised by Board personnel that vehicle usage logs
were not kept for the Board' s motor vehicles during 1981-82 . Board
personnel also informed us that usage logs were not kept for the
Board' s leased shrimp boat "Jean M. " Although "Float Plans" (trip
forms showing information such as boat description, date, operator,
time and place of departure, destination, purpose of trip, persons on
board, etc. ) were kept for the Board' s fishing boat "Tanya" during
fiscal year 1980-81 and subsequently, during fiscal year 1982-83,
Board personnel could not provide any such "Float Plans" for fiscal
year 1981-82 . Usage logs for the Board' s vehicles and boats are a
control feature designed to discourage unauthorized use and establish
that the vehicles and boats were used for a public purpose. We
recommend that logs be kept for all of the Board' s motor vehicles and
boats. Vehicle logs should account for all mileage and show the
purpose of each trip. Boat logs should account for engine operating
hours and show the purpose for all usage. Logs should be periodically
reviewed by management to determine that vehicles and boats were used
for official or authorized purposes. The Board' s fishing boat and
shrimp boat are also discussed in this report under the subheading
Resource Utilization.
(23) We noted the need for improved controls over gasoline credit
cards in audit report No. 10138, paragraph 38. The finance department
was not keeping records showing the quantity of cards received from
oil companies and subsequently turned over to other departments.
During the course of this examination, we were informed by Board
personnel that starting in 1982-83, as renewal credit cards are
received from oil companies, lists are prepared showing all cards
received and signed receipts are obtained when cards are turned over
to other departments. The effectiveness of these procedures will be
reviewed and reported during our next audit of the Board' s operations.
Cash Controls and Administration
(24) The Board loaned moneys of the Debt Service Funds and the
Capital Projects Funds to the General Fund, of which $792, 953 was
outstanding at June 30, 1982. Further review disclosed that these
loans were repaid in January 1983, approximately 29 months after the
first loan was made. Our audit also disclosed that the collection of
ad valorem tax money for the 1980 tax roll was delayed from the normal
collection date of November and December 1980. However, commencing in
January 1981 and extending through the end of May 1981, the Board
received over $7,000, 000 in collections of ad valorem taxes. We noted
that collections of 1981 taxes were received on a current basis.
6
Par.
No.
(25) Moneys restricted to debt service purposes and capital
outlay purposes are not legally available for other purposes. While
we recognize that, when faced with a delay in the collection of local
taxes, the Board may have wished to minimize the cost of securing
operating moneys by borrowing these moneys for operating purposes, it
is not apparent why repayment was substantially delayed.
(26) Our review of check-signing procedures disclosed that blank
payroll and other Board checks were stored in boxes in the Data
Processing Department. The check-signing machine used for payroll
checks was kept in the Data Processing Department and operated by
employees of that Department. The signature plates for the machine
were kept in the custody of the Director of Data Processing. Adequate
internal control over blank checks and check-signing machines requires
that employees who operate check-signing machines or have custody of
signature plates necessary to operate the machines, should not also
have access to blank checks. In order to strengthen internal control
over blank checks and the check-signing machine, we recommend that all
blank checks be stored in locked cabinets and that employees who have
access to the blank checks not also operate the check-signing machine
or have custody of the signature plates.
(27) Our review of internal control procedures over fees
collected for adult and vocational education courses disclosed that
prenumbered or validated receipts were not issued for such fees
collected at the Marathon and Coral Shores High Schools. Proper
internal control over cash collections requires that collections be
controlled by the use of a prenumbered receipting system. To
strengthen internal control and fix responsibility for the collection
of adult and vocational education course fees, we recommend that
either prenumbered or validated receipts be issued for all fees
collected.
(28) A substantial portion of the revenue from local sources of
the Special Revenue Funds, $808,488. 66, reported on the Board' s
financial statements resulted from the cash sales of food prepared at
the school cafeterias. In several previous audit reports we have
noted that improvements were needed in the internal controls over the
collections of these revenues. Our audit tests and review of internal
control procedures disclosed that during fiscal year 1981-82 internal
control procedures over these collections continued to be inadequate
in that:
o Some collections were not controlled by the use of
either prenumbered receipts, prenumbered tickets, cash
registers, or a roster system.
o The cash registers in use at some schools did not
provide adequate control features. We noted that some
cash registers did not print consecutive transaction
numbers and keys used for locking registers were left in
some registers and, therefore, the registers could be
cleared and reset by unauthorized personnel .
7
Par.
No.
o Documentation of independent tray or plate counts was
not available to corroborate the number of meals
reported by personnel handling cash collections.
o At some schools using a roster system to identify meal
sales, advance collections could not be identified since
they were not separately shown on the daily reports of
collections and food sales.
o The daily reports of collections and food sales for some
schools did not show register readings or amounts of
overages and shortages. Any overages and shortages were
included in a la carte sales on the daily reports.
o In some instances void transactions and adjustments to
cash register tapes were not explained or approved.
o The transfer of responsibility for collections from one
employee to another prior to deposit was not documented
by signed transfer receipts.
Because of the above-mentioned deficiencies in internal controls, we
could not verify the correctness of food sales during the audit period
beyond the amounts reported as collected.
(29) The Superintendent identified several changes made
subsequent to the close of the audit period to correct internal
control deficiencies. Corrective actions enumerated were: the use of
a roster system in all schools; a new "Records and Receipts" form was
drafted and provided space for an over and short column on the form;
cafeteria managers and cashiers were directed to record advance
collections on the roster and the date the collections were made;
cafeteria managers were directed to initial all adjustments to cash
register tapes; and the new "Records and Receipts" form has a "Receipt
of Deposit" column for the purpose of documenting collection
transfers. (A key control factor not mentioned in the proposed
corrective procedures, which the Board should institute, is an
independent plate count compared and reconciled to cash collections
for meals served) . Also, the Board purchased and received eight new
cash registers in April 1983 to help provide better control over
collections for food sales. The new procedures instituted subsequent
to the close of the audit period and the additional cash registers
purchased should help strengthen internal control and fix
responsibility for food sales collections.
Budget Administration
(30) Budgets were prepared, approved, and amended in accordance
with applicable laws and State Board of Education rules. Expenditures
were within budgeted appropriations. Comparisons of estimated
revenues and appropriations with actual revenues and expenditures are
shown on exhibit C.
8
Par.
No.
(31) In accordance with State Board of Education Rule 6A-1 . 08,
Florida Administrative Code, the Superintendent provided the Board
with monthly reports showing budgeted revenues and revenues received
to date and reports of expenditures and obligations compared with
budgeted appropriations.
Federal Direct and Federal Through State Support
(32) Our examination of Federal direct and Federal through State
grant-in-aid programs was made in accordance with generally accepted
auditing standards; the financial and compliance elements of STANDARDS
FOR AUDIT OF GOVERNMENTAL ORGANIZATIONS, PROGRAMS, ACTIVITIES, AND
FUNCTIONS, issued by the United States General Accounting Office; the
provisions of GUIDELINES FOR FINANCIAL AND COMPLIANCE AUDITS OF
FEDERALLY ASSISTED PROGRAMS; and compliance supplements approved by
the United States Office of Management and Budget.
(33) Moneys received pursuant to Federal direct grant awards
during the audit period were:
Program Amount
Received
Federal Impact, Current Operations $550, 937. 62
Refuge Revenue Sharing Act:
Key Deer National Wildlife Refuge 84,081 .00
Emergency School Aid Act:
Bilingual
150,357. 12
Total $785, 375. 74
(34) Revenue totaled $1, 598,279.91 from Federal grant funds
provided through State agencies, including $622, 991. 59 as
reimbursements for food and nutrition services and United States
Department of Agriculture donated commodities.
(35) Our examination indicated that for the items tested, the
Board substantially complied with applicable laws and regulations
which might have a material effect upon the financial statements of
the District. Nothing came to our attention as a result of our
selective tests that caused us to believe that untested items were not
materially in compliance with applicable Laws and regulations.
(36) Our limited tests of the accuracy and reliability of
financial reports submitted to the Federal Government to account for
the utilization of direct Federal grants indicated that the reports
were generally accurate and complete. Nothing came to our attention
to indicate that the Federal financial reports did not present
accurate and reliable information.
9
Par.
No.
•
State Support
(37) Revenues from State sources totaled $8, 611, 706.55, including
$5,230,320.00 provided through the Florida Education Finance Program
(FEFP) and $3, 381,386. 55 provided through other State programs. State
categorical programs, including transportation and primary education
programs, are accounted for in the General Fund and Public Education
Capital Outlay (PECO) funds are accounted for in the Capital Projects
Funds.
(38) State funds received for current operations were primarily
from the Florida Education Finance Program (FEFP) administered by the
State Department of Education under the provisions of Section 236. 081,
Florida Statutes. In accordance with this law, the Board filed school
principals' reports of full-time equivalent student membership with
the State Department of Education. The State Department of Education
accumulated information from these reports and calculated the
allocations of FEFP funds. The State Department of Education, after
review and verification of the school principals' reports and
supporting documentation, may during subsequent fiscal periods adjust
the allocation of FEFP funds received during the audit period. The
procedures for allocation of funds under the funding formula are
reviewed in our audits of the State Department of Education.
Ad Valorem Taxation and Other Local Support
(39) Revenues from local sources consisted primarily of receipts
from ad valorem taxes, school lunchroom sales, and interest on
investments. Millages and taxes levied on the 1981 tax roll for
school purposes are presented in note 3 to the financial statements.
Millages levied were within amounts authorized by law.
Personnel and Payroll Administration
(40) Contracts were on file for certificated members of the
instructional staff as required by Section 231.36(1) , Florida
Statutes. Audit tests indicated that salaries were paid in accordance
with salary schedules that had been adopted as required by State Board
of Education Rule 6A-1. 52, Florida Administrative Code.
(41) Withholding and other payroll deductions were accurately
made and promptly remitted with required matching amounts.
(42 ) Audit tests indicated that employee leave was properly
administered and taken as provided by the rules of the State Board of
Education and policies adopted by the Board.
(43) The annual compensation of the Board members was paid in
accordance with the amounts computed by the Department of Community
Affairs as shown in the Department' s publication, SALARIES OF COUNTY
OFFICIALS. The Department is charged with the responsibility for
annually determining compensation of county officers as provided by
Section 145. 19, Florida Statutes.
10
Par.
No.
(44) The annual compensation of the Superintendent was set by the
Board pursuant to Section 230. 303, Florida Statutes. The
Superintendent was correctly paid the amount set by the Board.
(45) In earlier fiscal years the Board approved the payment of
tuition for the Superintendent to attain a PhD. degree in
Administration and Education. In audit report No. 10138, paragraph
22, we noted that the Attorney General in opinion No. 082-71, dated
September 21, 1982, concluded that a district school board may not
expend school funds in payment of tuition fees for doctoral level
courses to further the education of its Superintendent. In April 1983
the Board received reimbursement totaling $5, 400 from the
Superintendent for tuition payments made by the Board on behalf of the
Superintendent.
Purchase of Goods and Services
(46) Operating Expenditures. The provisions of Board policies
and State Board of Education Rule 6A-1 . 12, Florida Administrative
Code, require the Board to request bids from three or more sources for
any authorized purchase exceeding $3, 000. In audit report No. 10138,
paragraph 26, we disclosed that several purchases had been made
without benefit of competitive bids, contrary to the provisions of
Board policies and State Board of Education Rule 6A-1 . 12, Florida
Administrative Code. A few similar purchases were also noted in our
audit tests of purchases in the 1981-82 fiscal year. However, when
these purchases were brought to the attention of the Superintendent,
internal control procedures were instituted to preclude further
occurrence. The effectiveness of these procedures will be evaluated
in our next audit of the Board' s operations.
(47) Our tests of operating expenditures also disclosed two
instances of travel advances which were not supported by vouchers
establishing entitlement to the amounts advanced. Similar problems
were noted in audit report No. 10138, paragraph 28. Subsequent to the
audit period, the Superintendent advised us that procedures had been
established to require detail accountability in support of all travel
expenditures.
(48) Capital Outlay. The Board' s only major construction project
in progress during the 1981-82 fiscal year was a Joint-Use Vocational
Education Facility in Marathon, Florida, constructed in cooperation
with the Florida Keys Community College. The Board' s project priority
list approved by the State Board of Education on June 16, 1981, shows
that State funds totaling $1,263, 000 were approved for the facility.
An additional $258,375 was to be provided by the College. The
construction contract for the facility totaled $1, 346, 800 with total
billings of $853, 300 at June 30, 1982 . Audit tests indicated that the
contractor and architect were paid in accordance with contract terms
and that bids and change orders complied with applicable rules and
regulations.
11
Par.
No.
(49) During the audit period the Board expended $1, 283, 617.40 of
capital outlay funds for construction of the Joint-Use Vocational
Facility and for repairs to existing educational facilities to correct
deficiencies applicable to Safety-to-Life, Health, and Sanitation
Projects. Most of the expenditures for repairs were made to correct
deficiencies listed, as required by State Board of Education Rule
6A-2 . 76, Florida Administrative Code, on safety inspection reports.
However, we noted a few expenditures for repairs to correct
deficiencies which had not been identified on the reports. In most
instances, although minor amounts were spent on nonqualifying
projects, the repairs noted (which totaled approximately $69, 000) were
for the correction of deficiencies which, had they been included on
safety inspection reports, would permit the expenditure of capital
outlay funds for repair. We recommend that in the future, to the
extent practicable, the Board obtain prior certification of need for
such repairs as prescribed by the rules of the State Board of
Education.
Debt Administration
(50) There were no new local or State Board of Education bonds
issued during the audit period.
(51) State Board of Education bonds payable represent the Board' s
portion of bonds sold through the State Department of Education on
behalf of specific community colleges and district school boards under
Section 9(d) , Article XII , of the Constitution of the State of
Florida. A portion of the future allocations of the Board' s Capital
Outlay and Debt Service Funds, provided by the State from moneys
legally obligated for such purpose, is pledged as revenue to secure
the issues. The responsibility for the principal and interest
payments and reserve requirements for the State Board of Education
bonds was administered by the State Board of Education and the State
Board of Administration.
(52 ) A portion of the Board' s racetrack funds authorized under
Chapters 550 and 551, Florida Statutes, was pledged to pay the
principal and interest on the Special Act Certificates of Indebtedness
dated June 1, 1966. Debt service payments were made and reserve
requirements were met.
(53 ) Details pertinent to the Board' s long-term debt are shown in
note 6 to the financial statements.
Risk Management Programs
(54) Insurance coverage complied with legal requirements and
included such other coverage as deemed necessary by the Board.
Resource Utilization
(55) In audit report No. 10138, paragraph 32, we noted the need
for written lease agreements for the use of the Board' s Grace Jones
and Burlington Buildings. The Grace Jones Building in Marathon was
being used by a children' s day care center and the Burlington Building
12
Par.
No.
in Key Largo was being used by a local church. Subsequent to the
issuance of that report, lease agreements for the use of these
buildings were approved by the Board.
(56) During the course of this audit we noted that there were no
operating policies and procedures governing the use of the Board' s
fishing boat "Tanya" and leased shrimp boat "Jean M. " As discussed in
this report under the subheading Purchase of Goods and Services -
Operating Expenditures, the Board approved the purchase of the "Jean
M. " on June 28, 1982. Discussions with Board personnel and a review
of "Float Plans" for the "Tanya" for fiscal years 1980-81 and 1982-83
(none were located for 1981-82 as noted in this report under the
subheading Record Systems) , disclosed that the "Jean M. " was used for
training students in the operations of a shrimp boat and for
commercial shrimping purposes when not needed for teaching students.
The "Tanya" was used in teaching students how to operate a fishing
boat, fishing, boat safety, navigation, and for commercial fishing
purposes when not needed for instructional purposes. "Float Plans" on
file for the "Tanya" indicated that on at least one occasion the boat
was used to "TAKE A CRUISE" and on another occasion for "FISH/FUN" to
the Dry Tortugas over the December 5-7, 1980, weekend. The records
did not disclose the necessary or authorized public purpose served by
these trips. To help ensure that boats are used solely for their
intended purposes and to provide guidelines for Board employees
responsible for boat operations, we recommend that the Board adopt
written policies and procedures governing the use of its boats.
Additionally, records of boat use should clearly identify the public
purposes served by their use.
Internal Funds
(57) The Board is assigned the responsibility for administration
and control of all local school funds (internal funds) under the
provisions of Section 237.02(4) , Florida Statutes. This Section
provides that the Board shall prescribe the principles and procedures
to be followed in administering such moneys in a manner consistent
with regulations adopted by the State Board of Education. State Board
of Education Rule 6A-1. 87, Florida Administrative Code, applicable to
internal funds, provides, in part, that the Board shall adopt policies
for the receipt and disbursement of the internal funds, the
accountability of property acquired, and shall provide for annual
audits. The Board reported the transactions of the internal funds in
its Expendable Trust Fund.
(58) In accordance with State Board of Education Rule 6A-1. 87,
Florida Administrative Code, the Board provided for an audit of
internal funds for fiscal year 1981-82 by a firm of certified public
accountants. The opinion of the other auditors is included in the
reports on file with the Board. Our examination did not extend to the
internal funds reported as Expendable Trust Funds.
13
Par.
No.
STATEMENT FROM AUDITED OFFICIAL
(59) In accordance with the provisions of Section 11.45(6) (d) ,
Florida Statutes, a list of audit findings was submitted to the Monroe
County District School Board and the Superintendent on November 28,
1983 . Contrary to the provisions of Section 11 .45(6) (d) , Florida
Statutes, neither the Board nor the Superintendent submitted a written
statement of explanation or rebuttal within 20 days after receipt of
the list.
EXHIBITS
The following exhibits are attached to and form a part of
this report:
EXHIBIT - A Combined Balance Sheet - All Fund Types and Account
Groups.
EXHIBIT - B Combined Statement of Revenues, Expenditures, and
Changes in Fund Balances - All Governmental Fund Types
and Expendable Trust Funds.
EXHIBIT - C Combined Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual -
Governmental Fund Types.
EXHIBIT - D Notes to Financial Statements.
Respectfully submitted,
(Signed) Ernest Ellison, C.P.A.
Auditor General
Audit supervised by:
( Signed) Gerald J. Schilling
Audit made by:
(Signed) James A. Bell
14
_ 88 § ( \ o
§ 2 -J . ¥ ! ; , ! 5 ;
■r,!
0 . q\ § § / §
0ex .< ea ' 7 Z « &
, � . . M0 : . # ; &
cO oi co co co
� �\ Cu oi
co - - 12
4.
o
;wy n a R88 8 F- 0 ! ; ;
_ - ®■° _ ! ®r! ~ ~ ; §
\ O2 \m } . N r- - , \
/ 2 Co \ . / \ \
00Z- / _ )\ ,
) i J . » % . Cd . Cu
- �, N, \ ,, �, ) §
:7w " . / #o) we \ (� §a \ � !! / -Cd ! I/} }
„222R ■;4,; , - °°82R84 ;
•
-_ - ;64q R#R # N. 2g5§ r § ! §
eag rein Z 2� a� ! / ~! ! »\ ■ & {
IC
/v roa )
/ / ■ u. 19 co C • Za1U1 co
: -
. 2- ! /9!w ! \— -
§ ///\0\\ / \ \\/\0I IL S - / \
15
EXHIBIT-B MONROE COUNTY
DISTRICT SCHOOL BOARD
COMBINED STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES-
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
For the Fiscal Year Ended June 30, 1982
Total Governmental Fund Types Fiduciary
(Memorandum General Special Debt Capital Fund Type
Only) Fund Revenue Service Projects Expendable
Funds Funds Funds Trust Funds
(Unaudited)
Intergovernmental:
Federal Direct $ 785,375.74 $ 835,018.62 $ 150,357.12 $ $ $
Federal Through State 1,598,279.91 2,287.07 1,595,992.84
State Sources 8,611,706.55 7,126,151.83 43,50100 400.620.40 1,041,433.32
Local Sources 12,731,984.61 11,494,139.62 907,96173 43,583.82 286,279.44
Other 1,015,170.19 6,031.00 717,942.97 258,375.00 832.021.22
Total Revenue 25,542,517.00 19,263,628.14 3,415,775.613 444,204.22 1,586,087.78 832,821.22
Expenditure
Current-Education:
Instruction 9,469,278.78 8,847,016.18 622,262.60
Pupil Personnel Services 895,588.28 679,801.80 215,786.48
Instructional Media Services 381,326.04 326,093.90 55.232.14
Instruction and Curriculum Development Services 214,580.89 196,47670 18,103.99
Instructional Staff Training 144502.22 113,552.64 31,342.38
Board of Education 106270.17 95.180.03 11,089.34
General Administration 962.755.98 692,171.34 270,584.64
School Administration 1,429,078.99 1,429,078.99
Fiscal Services 291,219.93 291.219.93
Food Services 1.518.420.72 1.51642072
Central Services 555,336.97 497,615.68 50721.29
Pupil Transportation Services 1,075,510.58 1,075,510.58
Operation of Plant 2,257,300.77 2,248,160.59 9.140.08
Maintenance of Plant 1,310,744.37 1,307,772.813 2,971.59
Community Services 1310,976.99 180,103.54 630,873.45
Other 791,427.50 18,268]1 1,599.71 771,561.08
Fixed Capital Outlay:
Facilities Acquisition and Construction 1,473,812.06 190,194.86 1.283.817.40
Debt Service:
Principal 245,000.00 245.IX10.00
Interest and Fiscal Charges 175,419.35 115.419.35
Total Expenditures 24,109,950.37 18,180,217.03 3,446,135.51 420,419.35 1,263,617.40 771,561.08
Excess(Deficiency)of Revenue Over Expenditures 1.432.566.63 1,075,411.11 (30.359.65) 23.784.87 302.470.36 61,260.14
Other Financing Sources(Uses):
Operating Transfers In 303,536.27 231,361.00 72,175.27
Sale of Fixed Assets 390.000.00 390,000.00
Operating Transfers Out 1303,536.27) (72,175.27) 1231.361.001
Total Other Financing Sources(Use) 390,000,00 549.185.73 22175.27 (231,361.00)
Excess(Deficiency)of Revenue and Other Source
Over Expenditures and Other Uses 1,822,566.63 1,824,596.84 41,815A2 23784.87 71,109.36 61,280.14
Fund Balances,July 1, 1981 4,495,620.28 1,279,349.25 114,875.20 1,072,980.00 1,853,323.96 175,091.87
Adjustments to Increase(Decrease)Fund Balances (84,191.42) 1129.160.36) 44.968.94 121,367]8) 21,367.76
Fund Balances,July 1,1981,as Restated 4,411,426.88 1150.188.89 159,844.14 1,051,612.24 17174,691.72 175,0311.87
Fund Balances,June 30,1982 $ 8,233,995.49 $ 2774,785.73 $ 201,659.56 S1,075,397.11 $1,945.501.08 $238,352.01
The accompanying notes to the financial statements are an integral part of this statement.
•
16
^tsa: a. R;^8gxn R8 SR2 8 > 8a a
'IP Eat?§ a oisaao"s sa 5 R a e -
w 'a 4 -- - a SS'"R'a r; _ ^ m ry "i ry ^
. ^a8:m x Sasx R 2Aa 8x:� - Ra »
, $ "s.as"a. ROHMOE' 5E1 a s F E E EE i x
RE/8� ^ ar =ry mS 1- 9 R ^ ^ _ _ R
I »
^ S2282 R SR28288 R- 9x8 8 8 ^ • . ^
e i aI as ry 4AfAAA5 _R s [A"sg $ A a s i x
a ggxa- a ag8a8^a -a Reg- 5 5 a s ry
a
2aax8 = Rexe=282• a28Rg 8 = e 8R' as
o i ms aVRap s x_^$amraa AMA a - §m m =$ - a
gla = 488_c ,, S1gAg ry a a Am @ - :4 E
xo2xR A nsx:aaaxa x8x2a; 8 8 8a� a m ^
^^a ry oma:as^^r _SSRBa a r - gig g 8 :s a
I
8E1,18 Sp9RoSrGc S8a6•.s a R '" 8 8 8 -
== R AAR - a RRsc Ba 3?a as a - s a A R ? s a
,a¢F ads" =aAR8E5m 55„AF= - - a -_
ooJ=Y » - - . ry - - -
0ow0c v M ,12:m
S8z` S8 R8x• ^ CR 8 8 ^ __ B »
;MI; osx„^aEaaFa'Raga - "x aea 8 x a
xa - ! of =SxrY ^: Re'g^ tea_ ^ o m
- . • egym R a ma
» - ^ . _ a
s` 8 _
E '°`ax,^„_8xxR6x: S 8R R ^8n 8 - 3
°oLL a x RAFA r3R 1s i A•. & # AAA A 8
m E < !!!!R x xg8 88lr 8 _ AU s A_ a
E » _ ry m - _rv_ _ ry _ v a
° , S2882 r rvm8x888g,_R2R8822 ^87 ^ 8 8 m 8 8
E as a Via."='snx?"<gaa% a R AA I a R I m
=o axxaa ri. .,...-- ,aa` a0" - ry _ 0.
_ = s m
E i
I
? -
i 3 S 6 i i
iz E i F - - » E`s ,1°
tE'gym i - fr 'e Eia =-a`N oa i S RAF
a 4 YC 152 m
Eo_y� $ oCo4_St a�i o - 8- Y - ' i Es ' t
3 ET:14 E S - _ ^ g a• ° oE . 9xt ` . ' 5" a °$ '
aY`a_ , g == s H�8<,ao °`Yexg �' F - cat 2 mE
3S r - 3a LE 0 =ono F"-
W o W
17
\ 2\ . 1 . . \ \ ) § ( \
} \ \\ a\ - _ -
.
i ) R § § § § § ) ( ) )
) " � � ; ; 8 8 � � �
|; : ;[ § §
$$0. , 2 i e , ` ! -
0.
//) ! . § ( \ ( � gl \ } }
22.630
0240
woE
\ !la0 2 ! 5 }
.!)! 8 §E ; 8 t/ ! : , {
, Q/, ! \) / j . t G§ § 14 \
t\ _ . , g : t
PM124§)\ /QDt70"i6 I | �
) §// 15 . /)j) \{/ §\j) | : )\\ ! / ! \ 28
EXHIBIT - D
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
1. Summary of Significant Accounting Policies. The governing body of the
school district is the District School Board composed of an elected
board with an elected Superintendent of Schools as executive officer.
Although the District School Board is considered a separate entity for
financial reporting purposes, it is part of the State system of public
education under the general direction and control of the State Board of
Education as prescribed by Article IX of the State Constitution. The
District School Board is also governed by State Statutes and State Board
of Education Regulations.
Pursuant to State law, the Superintendent of Schools is responsible
for keeping records and accounts of all financial transactions in the
manner prescribed by the State Board of Education.
The accounting policies of the Monroe County District School Board
conform to generally accepted accounting principles applicable to
State and local governmental units. The significant accounting
policies are summarized below:
A. Fund Accounting. The accounts of the Board are organized on
the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted
for with a separate set of self-balancing accounts which
include the fund' s assets, liabilities, fund balances,
revenues, and expenditures, as appropriate. Government
resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent
and the means by which spending activities are controlled. The
various funds are grouped, in the financial statements in this
report, into five generic fund types and within two broad fund
categories as follows:
GOVERNMENTAL FUNDS
General Fund - to account for all financial resources
except those required to be accounted for in another
fund.
Special Revenue Funds - to account for the proceeds of
specific revenue sources (other than for major capital
projects) that are legally restricted to expenditures
for specified purposes.
Debt Service Funds - to account for the accumulation
of resources for, and the payment of, general long-
term debt principal, interest, and related costs.
19
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
Capital Projects Funds - to account for financial
resources to be used for the acquisition or
construction of major capital facilities.
FIDUCIARY FUNDS
Trust and Agency Funds - to account for assets held in
a trustee capacity. These include Expendable Trust
Funds.
B. Fixed Assets and Long-Term Liabilities. Fixed assets used in
governmental fund type operations (general fixed assets) are
accounted for in the General Fixed Assets Account Group, rather
than in governmental funds.
Long-term liabilities expected to be financed from governmental
funds are accounted for in the General Long-Term Debt Account
Group, not in the governmental funds.
The two account groups are considered separate self-balancing
entities but are not "funds. " They are concerned only with the
measurement of financial position. They are not involved with
measurement of results of operations.
C. 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.
Except for the Fiduciary Funds - Expendable Trust Funds, all
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 as net current assets. When grant terms provide that
the expenditure of funds is the prime factor for determining
eligibility for Federal, State, and other grant funds, revenue
is recognized at the time the expenditure is made.
Expenditures are generally recognized when the related fund
liability is incurred. Exceptions to this general rule
include: ( 1) accumulated unpaid vacation, sick pay, and other
employee benefits earned but not used which are not accrued;
(2) principal and interest on general long-term debt which is
recognized when due; and (3 ) prepaid expenses which are
generally not recognized.
20
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
The cash basis of accounting is used for the Fiduciary Funds -
Expendable Trust Funds. Revenues are recognized when cash is
received and expenditures are recognized when cash is
disbursed.
D. Budgets and Budgetary Accounting. The Board follows these
procedures in establishing the budgetary data reflected in the
financial statements:
( 1) Budgets are prepared, public hearings are held, and
final budgets are adopted by the Board and submitted
to the Commissioner of Education pursuant to the
procedural steps and time intervals specified by Law
and State Board of Education rules (Chapter 237,
Florida Statutes, and State Board of Education Rule
6A-1 .02, Florida Administrative Code) .
(2 ) Changes in appropriations must be approved by the
Board and changes involving debt service and certain
capital project appropriations must also be submitted
to the Commissioner of Education (Chapter 237, Florida
Statutes) .
(3 ) Budgetary information is integrated into the Board' s
accounting system.
E. Encumbrances. Encumbrance accounting is employed as an
extension of formal budgetary integration in governmental fund
types. Under encumbrance accounting, purchase orders,
contracts, and other commitments for the expenditure of moneys
are recorded in budgetary accounts in order to reserve a
portion of the applicable appropriation. To present the
estimated amount of expenditures likely to result if executory
contracts for goods or services at fiscal year-end are
completed, encumbrances outstanding at June 30 have been
reported as reservations of fund balances, as applicable, in
the General Fund, Special Revenue Funds, and Capital Projects
Funds since they do not constitute expenditures or liabilities.
Revenues of grants accounted for in the Special Revenue Funds
are generally not recognized until expenditures are incurred.
Accordingly, these grants generally do not accumulate fund
balances. Purchase orders or other executory commitments
outstanding for these grants accounted for in the Special
Revenue Funds at June 30, 1982, totaled $152,204. 64.
21
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
F. Investments. Investments consist of bond proceeds held and
administered by the State Board of Education. These bond
proceeds are invested by the State Board of Administration in
various securities. These proceeds totaled $378, 662 .55 at June
30. Investments of moneys placed with the State Board of
Administration are made on a pooled basis and the State Board
of Administration has not identified or reported to the Monroe
County District School Board the market value for these
investments.
G. Inventory. Inventory is valued at the lower of cost or market.
Donated food is valued at fair value at the time of donation as
determined by the State Department of Health and Rehabilitative
Services, Food Distribution Center. The first-in, first-out
method is used in pricing the food, nonfood, and small
equipment inventory. The weighted average method is used in
pricing the stores and distribution supplies inventory and the
gasoline and oil inventory. The last invoice cost is used for
pricing the transportation, maintenance, textbook, and
mimeograph supplies inventories. These inventories which are
reported in the General Fund and Special Revenue Funds consist
of expendable supplies held for consumption. The cost is
recorded as an expenditure at the time individual inventory
items are requisitioned for consumption.
H. Fixed Asset Valuations. All purchased fixed assets are valued
at historical cost or estimated historical cost if actual
historical cost is not available. Donated fixed assets are
valued at their estimated fair value on the date donated. No
depreciation has been provided on general fixed assets.
I . Accumulated Unpaid Vacation and Sick Leave. Board policies
provide that employees shall continue to be paid a salary while
on leave of absence from duty because of illness or while on
approved vacation to the extent entitlement to such leave is
previously earned and accumulated during employment. Although
records are kept showing each employee' s leave earned, used,
and the unused balance, the cost of such leave is charged as an
expenditure when used rather than when earned. At June 30,
1982, unrecorded liabilities of the District for sick and
vacation leave earned but unused totaled $372, 434.
J. Internal Funds. The Board is responsible for the
administration of certain moneys collected at various schools
in connection with school and student organization activities.
These moneys are commonly described as "internal funds" and are
22
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
subject to State Board of Education Rule 6A-1. 87, Florida
Administrative Code. The transactions of the internal funds
are included in the combined financial statements of the Board
as Expendable Trust Funds.
K. Total Columns on Combined Statements. Total columns on
exhibits A, B, and C are captioned memorandum only to indicate
that they are presented only to facilitate financial analysis.
Data in these columns do not present financial position,
results of operations, or changes in financial position in
conformity with generally accepted accounting principles.
Neither is such data comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of this
data.
2. State Funds. State funds received for current operations were primarily
from the Florida Education Finance Program (FEFP) administered by the
State Department of Education under the provisions of Section 236. 081,
Florida Statutes. In accordance with this law, the Board filed school
principals' reports of full-time equivalent student membership with the
State Department of Education. The State Department of Education
accumulated information from these reports and calculated the
allocations of FEFP funds. The State Department of Education, after
review and verification of the school principals' reports and supporting
documentation, may during subsequent fiscal periods adjust the
allocation of FEFP funds received during the audit period.
The Board received revenue from the State to administer certain State
categorical education programs. State Board of Education rules require
that revenue earmarked for categorical programs be expended only for the
program for which the money is provided and require that the money not
expended as of the close of the fiscal year be carried forward into the
following year to be expended for the same categorical programs. The
State Department of Education requires that categorical program revenue
be accounted for in the General Fund rather than in Special Revenue
Funds and, accordingly, does not provide for the separate reporting of
that portion of the fund balance earmarked for categorical programs.
The State authorizes the allocation of Public Education Capital Outlay
(PECO) funds to the District School Board on an annual basis. The Board
is authorized to expend these funds only upon applying for and receiving
an encumbrance authorization from the State Department of Education.
Accordingly, the Board recognizes the allocation of PECO funds as
deferred revenue until such time as they are encumbered.
3 . Ad Valorem Taxes. The Board is authorized by State law to levy taxes
for district school operating purposes, capital improvements, and debt
service. Ad valorem taxes attach as an enforceable lien on property as
23
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
of January 1 . Taxes are payable on November 1 . The Monroe County Tax
Collector administers the collection of taxes for the Board. Millages
and taxes levied by the Board were as follows:
Mills Amount
General Fund:
Nonvoted School Tax 5. 64 $11, 260,217. 73
Capital Projects Funds:
Nonvoted Capital Improvement Tax . 15 299, 473. 88
Total 5. 79 $11, 559, 691. 61
4. Due from Other Agencies. Amounts due from other agencies were as
follows:
General Fund:
Monroe County Tax Collector $172,884. 12
United Teachers of Monroe County
(Teachers Union) 18, 561.40
Total $191,445 . 52
Special Revenue Funds:
Other $ 176. 90
Capital Projects Funds:
Monroe County Tax Collector $ 4,494. 68
Florida Keys Community College 62, 251 .00
Total $ 66, 745. 68
5. Changes in General Fixed Assets. A summary of changes in general fixed
assets follows:
24
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
Balance Additions Deletions BBalance
ce
7-1-81
Land $ 2,928,682.98 $ 163,702. 11 $ $ 3,092,385.09
Buildings and Fixed 23,518,350.71
Equipment 22,439,149.39 1,079,201.32
Furniture, Fixtures,
and Equipment 2,641,834.49 439,414.95 676,201.10 2,405,048.34
Motor Vehicles 1,107,162.64 175,436.01 43,707.06 1,238,891.59
Total $29,116,829.50 $1,857,754.39 $719,908.16 $30,254,675.73
6. Changes in Long-Term Debt. Bonded debt of the Board consists of special
act certificates of indebtedness and State Board of Education bond
issues. Principal and interest on State Board of Education bonds are
secured by and payable from the State motor vehicle license taxes
distributable for the District under the provisions of State law. The
responsibility for the principal and interest payments, investment of
funds, and reserve requirements for State Board of Education bonds is
administered by the State Board of Education and the State Board of
Administration.
The following is a summary of bond transactions of the Board for the
fiscal year ended June 30, 1982:
25
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
Bonds Bonds Bonds
Outstanding Matured Outstanding
7-1-81 1981-82 6-30-82
State Board of Education Bonds:
Series B, $750,000, Issued
6-1-62, Matured 6-1-82, With an
Interest Rate of 3.4 Percent
Series 1974-A, $2,990,000, Issued $ 55,000 $ 55,000 $
1-1-74, Maturity Dates of the
Outstanding Bonds Range from 1-1-82
to 1-1-95, With Interest Rates
Ranging from 4.0 to 5.5 Percent
2.625 000 125,000 2,500,000
Total State Board of Education Bonds $2,680,000 $180,000 $2,500,000
Special Act Bonds:
Certificates of Indebtedness,
$1,500,000, Issued 6-1-66, Maturity
Dates of the Outstanding Bonds Range
from 12-1-81 to 6-1-91, With Interest
Rates Ranging from 4-5/8 to 5-1/2
Percent
780,000 65,000 715,000
Total 3 460 000 245 000 §111ALpip
The annual requirements to amortize all bonded debt outstanding at June
30, 1982, including interest payments of $1, 146, 410, are as follows:
Year Ending State Board Special Act
June 30 of Education Total
Bonds Bonds
1983 $ 263, 770. 00 $ 98,993 . 75 1984 266,345.00 100,825. 00 $ 367, 170 . 00
1985 263,370.00 102, 412 .50 365, 782. 5
365, 782. 50
1986-95 _ 2, 678,000 00 587, 693 . 75 3,265, 693 . 705
Total $3, 471, 485. 00
$889,925.00 $4,361,410.00
There are a number of limitations and restrictions contained in the
various bond indentures. The Board is in compliance with all
significant limitations and restrictions.
26
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
7. Employee Retirement Programs. The Board does not administer a separate
retirement plan for its officers and employees. However, pursuant to
law, all officers and salaried employees are, with minor exceptions,
members of defined retirement plans of the State of Florida administered
by the Florida Department of Administration, Division of Retirement.
The retirement plans of the State of Florida consist of contributory and
noncontributory benefit plans. The plans provide for retirement, death,
and disability benefits and require contributions by employees and/or
participating agencies at stated percentages of compensation set by law
as determined from time to time by the State. Legislature. The combined
contributions to the plans for the fiscal year ended June 30, 1982,
totaled $44, 489.91 for officer and employee contributions and
$1,411, 546. 11 for the Board' s contributions. The plans' 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 Florida Department of Administration, Division
of Retirement, and are not computed on an individual agency basis.
8. Interfund Receivables and Payables. A summary of interfund receivables
and payables follows:
27
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
Amount
Interfund Receivables
General Fund:
Receivable From:
Capital Projects Funds - PEBA $ 155,000.00
Special Revenue Funds - Food Service 70, 536.94
Special Revenue Funds - Other:
Receivable From:
Special Revenue Funds - Food Service 980.82
Debt Service Funds - Special Act Bonds:
Receivable From:
General Fund 375, 859.00
Capital Projects Funds - CO & DS:
Receivable From:
General Fund 389,279 . 00
Capital Projects Funds - COSI :
Receivable From:
General Fund 27,815.00
Capital Projects Funds - LCIF:
Receivable From:
General Fund 172,884. 12
Total - $1, 192, 354.88
Interfund Payables
General Fund:
Payable to:
Capital Projects Funds:
CO & DS $ 389,279.00
COBI 27, 815.00
PEBA 172, 884. 12
Debt Service Funds - Special Act Bonds 375, 859.00
Special Revenue Funds - Other:
Payable to:
General Fund 70, 536.94
Special Revenue Funds - Food Service 980.82
Capital Projects Funds - PEBA:
Payable to:
General Fund 155, 000.00
Total $1, 192, 354.88
9 . Fund Balance Adjustments. Adjustments to fund balances July 1, 1981,
were as follows:
28
EXHIBIT - D
(Continued)
MONROE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO FINANCIAL STATEMENTS
June 30, 1982
Amount of
Increase
(Decrease)
General Fund:
Correction for Over Accrual of Prior Year Taxes $(117, 643 . 88)
Obsolete Inventory Items Written-Off (11, 516.48)
Total $ (129, 160. 36)
Special Revenue Funds:
Eliminate Amount Payable on a Construction
Contract - Disputed Claim Settled in Favor
of the Board $ 46, 194.35
Minor Corrections to Due to and Due from Other
Agencies (1,225. 41 )
Total $ 44, 968.94
Debt Service Funds:
Adjustment Made Pursuant to School District
Capital Outlay and Debt Service Information
Received from the State Department of
Education $( 21, 367. 76)
Capital Projects Funds:
Adjustment Made Pursuant to School District
Capital Outlay and Debt Service Information
Received from the State Department of
Education $ 21,367. 76
29