Report No. 08740, Monroe County 8740
STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
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*** MONROE COUNTY ***
BOARD OF COUNTY COMMISSIONERS
As of September 30, 1974
4 8740
STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
Report on Audit
of the Accounts of
MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
As of September 30, 1974
Dated: May 17, 1976
c_
Li
CCJ
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meer„1.
+l4y �r vs. STATE OF FLORIDA
liio���a p. OFFICE OF THE AUDITOR GENERAL
ERNEST EUJSON.C.P. A. Tallahassee, Florida
Aunvon G[NERAL May 17, 1976
The Legislative Auditing Committee
of the Legislature
and the
Governor of Florida
Sirs:
Pursuant to the provisions of Section 11.45, Florida Statutes, I
have directed that an audit be made of the accounts and records of the
MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
Par. For the fiscal year ended September 30, 1974,
No.
and present this report thereon.
(1) Pursuant to the provisions of Section 11.45(4) , Florida Statutes, an
audit by this office of the accounts and records for the period beginning
October 1, 1970, and ending September 30, 1973, has been deferred.
(2) Although my overall examination was for the 1973-74 fiscal year,
Federal Revenue Sharing Funds were audited for 1972-73 and 1973-74.
PERSONNEL
(3) The Personnel of the Board was as follows:
District
No.
John W. Parker, Mayor Pro Tem 1
William A. Freeman, Jr. 2
Harry S. Pritchard 3
William "Bill" Carter 4
Harry Harris, Mayor 5
Ralph W. White - Clerk of the Board of
County Commissioners ex officio
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No.
SCOPE AND OPINION
(4) I have examined the financial statements of the various funds and
account groups of the Monroe County Board of County Commissioners for the
fiscal year ended September 30, 1974. My 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 I considered
necessary in the circumstances.
(5) In my opinion, the accompanying financial statements present fairly
the financial position of the various funds and account groups of the Monroe
County Board of County Commissioners at September 30, 1974, and the results of
operations of such funds for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with that of the
preceding year.
FINANCIAL POSITION
(6) The financial position of the various funds is shown on exhibit A.
(7) Sufficient funds were available for current operations and debt
service. The Card Sound Bridge Funds reported a deficit in retained earnings of
$338,683.27; however, cash balances remaining on hand at the end of each month
were required by the bond resolution to be deposited in trust accounts and were
reported as $371,407.20 in reserves. In addition, depreciation expense of
approximately $48,800 was taken annually on the appropriate fixed assets of the
fund for financial reporting purposes, but was not funded; therefore, it was not
deducted from operating expenses prior to the transfer of cash balances from
current assets to restricted assets. The above transactions result in financial
statements reflecting balances in the reserve accounts and negative balances
in the retained earnings account. Due to an error of $12,128.56 in the
accumulation of depreciation, the deficit to retained earnings was understated
by that amount.
FINANCIAL OPERATIONS
Revenue
(8) The major source of revenue was taxes which are discussed under the
heading TAXES.
(9) Temporarily idle funds were invested in interest bearing time deposits
under Section 28.33, Florida Statutes, which authorizes the Clerk to invest
county funds in time deposits or U.S. Government securities, depending on which
form of investment produces the higher dollar return. Interest earned was
generally computed and credited quarterly as required by Section 136.04, Florida
Statutes. Interest revenue for the audit period by major fund groups is as
follows:
Operating Funds $ 99,396.18
Special Revenue Funds 31,992.79
Total $131,388.97
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(10) Board funds administered by trustee banks in accordance with various
bond resolutions were invested in interest bearing time deposits and U.S.
Government securities. Interest and profit on investment transactions by the
trustee banks are as follows:
Debt Service Funds $37,345.44
Card Sound Bridge Funds 25,449.92
Total $62,795.36
(11) The Board granted garbage collection franchises as authorized by
Chapter 63-1631, Special Acts of 1963 and Chapter 69-1320, Special Acts of
1969. These franchises were granted for ten year periods at a fee of 3% of
gross revenue. During the audit period, the Board received $14,029.66 from
six franchise holders.
(12) The procedures in effect for collecting the garbage franchise fees
and revenues from leases which were based on percentages of gross revenues did
not include verification of the gross revenue figures submitted by the lessees
and franchise holders either by certified audit reports or the examination of the
lessees' records by the Board's personnel. Such procedures are necessary to
insure that the amounts properly due to the Board are paid.
(13) The billing and collection functions for the Key West International
Airport were under the direction of the airport manager. An adequate accounts
receivable control account for amounts due to the Board from airport leases was
not kept, and the subsidiary records for accounts receivable were incomplete.
At September 30, 1974, there was approximately $880 in accounts receivable from
airport lessees which was not recorded or reported on the financial statements
as revenue of the 1973-74 fiscal year or as accounts receivable. Although the
provisions of some airport lease agreements necessitate accounts receivable, it
should be noted that Section 10, Article VII, Constitution of the State of
Florida, prohibits any State or local governmental agency from giving, lending,
or using its credit to aid any corporation, association, partnership or person.
(14) During the audit period, fees of $16 each were charged for nonscheduled
commercial airline landings. The fee schedule approved by the Board set the
landing fees on the basis of airplane weight and passengers arriving and depart-
ing. No records were provided to show how the fees actually charged for land-
ings were determined from the Board's fee schedule. In addition, the lease
agreement with Air Sunshine provided for a maximum of four flights per day under
the base rental rate with a fee of $2.50 for each additional flight. There were
no procedures in effect to insure that, if additional flights were made, the
airport management would be aware of them and the airline would be properly
billed.
(15) Collections made by the Card Sound Bridge, Building and Zoning Depart-
ment, and the library were deposited to a county depository directly by the
individual departments. Information regarding the deposits was then forwarded
to the Board's accounting personnel along with copies of the prenumbered receipts
issued or information as to which receipts were issued. Audit verification of
the receipts and deposits disclosed several minor instances at the building and
zoning department and the library where the sum of the receipts issued for a
day did not agree with the amount deposited. Procedures should be instituted to
provide for the comparing of receipts issued against deposits.
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Grants
(16) The Board received funds for several State and Federal projects.
Grant funds were recorded in the General Fund; however, grant project ledgers
were not kept and in some instances periodic financial reports were prepared by
the grant administrators rather than appropriate accounting department personnel.
Grant funds were commingled in the banks and the general accounting records.
Project ledgers and worksheets for purposes of identifying specific grant
expenditures were not available and accordingly the reported transactions in
some instances could not be reconciled to the general ledger accounts. As a
result, it was impracticable on postaudit to verify to the accounting records
$71,413.92 of the $97,442.59 reported as expended on the 1973 Transportation and
Guidance grant for the period from January 1, 1973, to December 31, 1973. A
similar situation existed for the 1974 Transportation and Guidance grant and
$2,010.08 of the $81,187.39 reported for the period from January 1, 1974, through
September 30, 1974, was not verified to the accounting records. Due to
inadequate accounting and/or project records, the revenue recorded for the
Emergency Employment Act grant of $34,295.66 was $1,100.57 greater than the
revenue earned based on recorded expenditures.
(17) During the 1971-72 and 1972-73 fiscal years, the Board received grants
from the Bureau of Criminal Justice Planning and Assistance for two drug and
alcohol abuse projects. The proceeds of the grant were turned over to the
Guidance Clinic of the Florida Keys for the administration of the funds and
submission of reports to the Bureau. The Board retained no control over these
funds. As a result of an audit of the grant by Bureau auditors, it was disclosed
that due to improper expenditures or support for expenditures made by the
Guidance Clinic, the Board was responsible for $1,445.55 in refunds to the
Bureau. The financial statements at September 30, 1974, did not include this
liability or a corresponding receivable from the Guidance Clinic. All grants
received by the Board should remain under its direct supervision and control and
all reports required by the grantor should be made by the Board.
(18) In January 1974, the Board received a State warrant for $6,400 as the
State's portion of a LEAA grant for a Criminal Justice Communications System
project. The grantor had designated the Monroe County Sheriff as the project
director and fiscal officer. The warrant was endorsed payable to the Sheriff
who deposited it in one of his official accounts. Such warrants should be
deposited by the Board to the appropriate bank account and remitted to the
recipient by Board warrant.
Purchases
(19) Purchases were handled by the Board's accounting department using pre-
numbered purchase orders. Purchasing procedures were generally adequate and in
accordance with the policies of the Board as set out in Ordinance No. 6-1972.
Tax exemptions and discounts were taken when applicable.
Vouchers
(20) Vouchers generally contained proper support, notations of receipt of
goods or services, and evidence of preaudit prior to payment. Classification
of departmental and object codes was generally proper, and vouchers were properly
filed in a systematic manner.
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(21) Written contracts were on file, in most instances, for those services
provided to the Board which required contracts. Instances noted of written
contracts not being executed were discussed with the Clerk and the Finance
Director.
Personnel and Payroll Records
(22) Payrolls were prepared and paid monthly for all Board personnel. A
pay plan existed during the audit period; however, the plan did not contain some
positions of employment and the Board in some instances did not adhere to the
pay plan in the employment of personnel. Time sheets were prepared for all
personnel.
(23) Records of leave accrued and used were kept for Board employees.
Audit tests of these records disclosed numerous instances of errors in the calcu-
lation of leave accrued and in the mathematical accuracy of the leave records.
The Board's leave procedures did not include leave request forms signed by the
employees and approved by the supervisors. Such forms should be instituted to
properly support leave granted and taken.
Foreclosure of Tax Certificates
(24) Section 197.241, Florida Statutes, requires that the Board make appli-
cation for a deed on all tax certificates two years from the date the taxes to
which they relate were due. The Board had not applied for tax deeds on the
eligible certificates which were those dated 1962, 1964, 1967, and 1972.
Welfare
(25) The Board's Welfare Department was responsible for the determination
of need and the extent of services to be provided to welfare recipients.
During the audit period, there were no written Board policies regarding welfare
operations; however, during November 1974, the Board adopted guidelines for use
by the Welfare Department. All welfare payments were made to vendors rather
than directly to the recipients. Some instances were noted where vendor payments
were either not supported by invoices or the invoices did not show the names of
the individuals receiving services. Proper support should be obtained for each
payment before it is made, and if the proper documentation is received, it should
be retained to properly support the disbursement.
Travel Expenses
(26) Reimbursements to Board employees for travel expenses were in accordance
with Section 112.061, Florida Statutes.
(27) During most of the audit period, the Board members were reimbursed for
official travel pursuant to Chapter 65-1180, Acts of 1965, as follows:
1. Ten cents per mile traveled regardless of the method of travel.
2. Per diem of $25 for any part of a day when travel was out of the
county. Per diem of $1.50 for any part of a day when travel was
within the county except for attending board meetings.
(28) At its meeting of August 27, 1974, the Board adopted Ordinance
No. 6-1974, repealing the provisions of Chapter 65-1180, Acts of 1965, which
were in conflict with general law.
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No.
Contributions
(29) During the audit period lump-sum payments were made to several orga-
mizations or agencies to support their operations. Payments of $14,000 to the
Guidance Clinic of the Florida Keys from Federal Revenue Sharing funds and
$10,000 to the Monroe County Comprehensive Health Planning Council from General
Revenue funds were made by the Board. Section 394.80, Florida Statutes, autho-
rizes the Board to appropriate funds to support these agencies. The Board
also entered into an agreement on October 1, 1973, with the Monroe Association
for Retarded Children, Inc. , to provide $20,000 to the Association over a
24-month period. Section 402.20, Florida Statutes, authorized the Board to
contract with private agencies to provide such a grant. The Historic Key West
Preservation Board of Trustees, a State agency, received $10,000 as authorized
by Section 266.208, Florida Statutes. The Board, at its meeting of November 13,
1973, approved the appropriation of funds for the Lower Keys Chapter No. 1351
of the American Association of Retired Persons, Inc. On November 26, 1973, per
a request from the Association, they were paid $5,000.
(30) The Board did not require from the above mentioned recipients an
accounting for the specific expenditures made by them which would support the
payments made to them by the Board. Such an accounting would be in keeping with
good business practice and should have been required in order for the Board and
the Clerk to have retained sufficient control over the disbursements to enable
them to verify that the expenditures were being made for a proper public
purpose. The Attorney General, in opinion No. 073-113, stated, ". . . there
must be some type of pre-audit review of the disbursement in order to make sure
that the funds will not be used for other than the county purpose for which the
donation was made." Also, Section 11.47, Florida Statutes, requires the Board
to enter into the public records sufficient information for a proper audit.
Advertising and Publicity
(31) Chapter 65-1938, Special Acts of 1965, authorizes the Board to levy
taxes not to exceed one mill for use by the Monroe County Advertising Commission
for advertising and giving publicity to the advantages, facilities, and productions
of the cities, towns, and adjacent territories within the county.
(32) It appears that the $127,440.84 expended during the audit period for
advertising and publicity was made in accordance with the law.
BUDGETS
(33) Budgets were properly prepared, amended, and posted to the accounting
records. Supplemental budgets were properly adopted and advertised. Comparisons
of budgeted revenue and expenditures with actual revenue and expenditures for
the General Fund, Special Revenue Funds, and the Card Sound Bridge are shown on
exhibits B, C, D, E, and G.
TAXES
(34) Millages and taxes levied on the 1972-73 general tax rolls were as
follows:
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No.
1972 1973
Mills Amount Mills Amount
(t)
Board of County Commissioners:
General Fund 3.767 81,647,626.37 3.812 $1,915,237.64
Fine and Forfeiture Fund 2.092 915,019.56 2.092 1,051,069.66
Health Clinic .267 116,739.06 .222 111.538.12
Bond Interest Sinking Fund -
Certificate of Indebtedness of 1965 .260 113.750.10 .260 130,630.01
Waste Control and Disposal District .300 114,160.00
District School Board:
General 8.400 3,614,856.97 9.750 4,825,864.00
Interest and Sinking .400 174,952.56 .420 211.018.00
Mosquito Control District 1.500 656. 199.68 1.500 753.635.00
Lower Florida Keys Hospital District 308.344.60 319.602.00
Central and Southern Florida Flood
Control District 6,051.37 7,126.00
Total 16.686 $7,553,540.27 18.356 89,439,880.43
Nate: Cl) Only county-wide millages are shown.
INSURANCE
(35) The Board had insurance coverage during the audit period as follows:
1. Fire and extended coverage on county buildings.
2. Liability and property damage.
3. Automotive comprehensive and liability.
4. Public employees blanket position bond.
5. Public officials bonds.
6. Workmen's compensation.
7. Employee group accident and health.
8. Money and securities.
(36) The insurance register maintained by the Board's accounting personnel
was poorly organized and very difficult to use in locating and determining the
status of the insurance in effect. Several instances were noted where canceled
policies had not been noted as such on the register.
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RECORDS AND INTERNAL CONTROL
(37) Considered on an overall basis, records were well kept and internal
controls were adequate. Exceptions noted are discussed below and in other
headings in this report.
(38) The minutes of the Board's meeting were complete, properly indexed,
signed by the Clerk and the Mayor, and appeared to contain all of the official
actions of the Board.
(39) The monthly reports of depository balances required by Section 136.02(2) ,
Florida Statutes, were not prepared for the appropriate accounts of the Meacham
Airport Revenue Bond Fund in the Southeast First National Bank of Miami, and the
Card Sound Bridge Revenue Bond Fund in the Florida National Bank and Trust
Company at Miami.
(40) Records for the control of prenumbered receipts used by the various
Board departments needed improvement. Complete records of the purchase, assign-
ment, and final disposition of receipt blanks were not maintained by either the
Board's accounting personnel or the issuing departments.
(41) The Board's Building and Zoning Department did not maintain records of
prenumbered receipt blanks and permit forms assigned to its offices outside the
Key West area. Due to inadequate referencing, receipt information, and/or the
filing system, I was unable to determine, without extensive search, that payments
had been received for competency certificates issued. Tests of building permit
applications which were used to calculate permit fees disclosed that several
were missing, and there were numerous instances where the applications did not
provide sufficient information on the basis used in arriving at the total fees
charged.
(42) Improvement was needed in the records and procedures for control and
maintenace of automotive vehicles. Records of the cost of operation and main-
tenance of Board-owned vehicles were not kept. Such records would support the
proper use and economical obsolescence of vehicles.
(43) Adequate controls were not exercised over the acquisition and use of
gasoline credit cards. The cards were applied for without prior Board approval
or the knowledge of the Board's accounting personnel. No records were kept of
the persons which had gasoline credit cards or were authorized to use them.
(44) Inventory records were not used to control and account for large
purchases of road materials. Tests of such purchases disclosed several instances
where it could not be determined where or how large amounts of crushed rock was
used. Daily work reports were submitted by the road crews; however, they were
not being used to control usage of road materials purchased. Often the reports
did not show the type and quantity of materials used. It was also noted that
job cost records were not kept for road work projects, and that periodic written
progress reports of the road projects were not submitted to the Board.
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CAPITAL OUTLAY
(45) During the audit period the Board began construction on a branch court-
house in Marathon. The construction contract was awarded to the only bidder
for $414,000. During 1973-74 the Board paid $100,962 to the contractor on
the project. Billings for payments to the contractor did not include the
contractor's affidavit regarding the prevailing rates of wages paid to free
laborers, mechanics, or apprentices employed in the construction of public
buildings as required by Section 215.19, Florida Statutes.
GENERAL FIXED ASSETS
(46) Detailed subsidiary records of amounts invested in unoccupied lands
were not adequate. At September 30, 1974, a list of unoccupied lands provided
for my examination totaled $100,092 less than the balance reported on the
financial statements. Included in the list of unoccupied lands were five lots
valued at $41,500 which a developer agreed to place as security in lieu of a
bond to guarantee the paving of streets in a subdivision. These lots were not
deeded to the Board and should not be included in its land accounts. Land at
the East Martello Battery Site deeded to the Board from the Federal Government
was not appraised and included in the land accounts. In addition, review of
records provided to the Board by the Monroe County Property Appraiser disclosed
nine parcels of land, excluding land acquired for road purposes, having current
assessment values totaling $479,700 which were omitted from the land accounts.
The values of the parcels of land at their acquisition dates should be determined
or estimated and the land account should be adjusted accordingly.
(47) The land and building amounts still included values for the "Old City
Hall" which had been transferred on March 4, 1974, to the Historic Key West
Preservation Board, a State agency. The book value of the land was $11,492
and the book value of the building was $32,368.
(48) The records and detailed subsidiary ledgers for buildings and other
improvements were not posted on a current basis and balanced with the control
records. Review of the building records disclosed numerous errors and omissions
including the following:
1. Capital expenditures for buildings and other improvements incurred
in 1972-73 totaling $133,993 were not included in the balance
reported at September 30, 1974.
2. The fixed asset account for buildings was increased by $66,567.41
which had been charged to maintenance expense and by $12,073.13
which could not be identified as to source.
3. A total of $18,337.99 charged as capital outlay expenditures for
buildings was not included in the increase to the account for
buildings in the general fixed assets.
4. The accounts for general fixed assets did not include $22,600
expended by the State Department of Natural Resources for
county parks on Little Duck Key and Sombrero Beach. Information
for these expenditures had been provided to the Board's personnel.
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(49) The amount reported in general fixed assets for construction in
progress consisted solely of $100,962 paid to the contractor through
September 30, 1974, on the construction of the branch courthouse in Marathon.
It was noted that this amount, in addition to the $18,606.80 paid to the
architect on the project, was included in the fixed asset account for buildings
at September 30, 1974. As a result, fixed assets were overstated by the
$100,962 that was included twice.
(50) The tangible personal property records and procedures required by
Chapter 274, Florida Statutes, and the regulations issued pursuant thereto,
needed improvement. Review of the records disclosed that the sum of the
custodian control accounts was $23,222.12 greater than the county-wide control
account. In addition, several mathematical errors and omitted transactions
were noted in the custodian control accounts. Section 10.410(7) , Rules of the
Auditor General, requires that property be marked with an identifying number
and the name of the governmental unit in a permanent manner. Numerous instances
were noted where the method of marking was not of a permanent nature.
(51) County-owned or leased cars were assigned to the Clerk, Mayor, and some
county employees. No records or documentation were found or provided to show
that the Board determined that such assignments were necessary, and were the
most economical method of travel in accordance with Section 112.O61(7) (a) ,
Florida Statutes. On June 27, 1975, after the close of the audit period, the
Clerk sent a memorandum to the members of the Board, in which he recommended that
all vehicles be kept in a motor pool and that vehicle trip logs be maintained.
He stated that any exceptions to this rule which resulted in the assignment of
a vehicle to an individual should be approved by the Board. He also recommended
that vehicles be purchased by the Board instead of leased.
FEDERAL REVENUE SHARING
(52) Federal funds were received bythe Board pursuant to the provisions
of Title I of State and Local Fiscal Assistance Act of 1972 (Public Law 92-512) .
The Act was enacted in October 1972 with funding retroactive to January 1, 1972.
The funds were appropriated to be distributed to State and local units of govern-
ment in seven entitlement periods ending December 31, 1976.
(53) The Board established separate bank accounts within the General
Revenue, Road and Bridge, and Fine and Forfeiture Funds to account for Federal
Revenue Sharing Funds received. A total of $653,929 was received during
1972-73 for entitlement periods I, II, and III, with $329,300 being deposited to
the General Revenue Fund, and $324,629 being deposited to the Road and Bridge
Fund. The amounts for entitlement period IV totaling $451,166 were received in
1973-74 and were distributed as follows: General Revenue Fund - $224,691, Road
and Bridge Fund - $169,633, and Fine and Forfeiture Fund - $56,842.
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(54) Section 103 of the Act states that funds received by units of local
government may be used only for priority expenditures which are defined as
follows:
1. Ordinary and necessary maintenance and operating expenses for
public safety (including law enforcement, fire protection, and
building code enforcement), environmental protection (including
sewage disposal, sanitation, and pollution abatement) , public
transportation (including transit systems and streets and roads) ,
health, recreation, libraries, social services for the poor or
aged, and financial administration.
2. Ordinary and necessary capital expenditures authorized by law.
(55) My examination was made in accordance with the AUDIT GUIDE AND STANDARDS
FOR REVENUE SHARING RECIPIENTS issued by the U. S. Department of the Treasury,
Office of Revenue Sharing, and accordingly included tests of compliance with the
revenue sharing laws and regulations that were considered necessary in the cir-
cumstances.
(56) Planned use reports and actual use reports were submitted to the Office
of Revenue Sharing and published in a newspaper of general circulation in the
local area as required by Sections 51.11 and 51.13 of the Revenue Sharing Regu-
lations. The actual use report for the fiscal period ended June 30, 1973, was
prepared in error and included appropriations for the next fiscal year in
addition to the actual expenditures that were incurred during the reporting
period. It was also noted that capital outlay expenditures totaling $36,067
were incurred during the reporting period but not included on the report. As a
result of the errors in the preparation, the actual use report was overstated
by $239,811. The actual use report for the fiscal period ended June 30, 1974,
appeared to be properly prepared; however, it contained $137,546 of transportation
capital outlay expenditures which were reported as transportation operating and
maintenance expenditures.
(57) In general, expenditures of Federal Revenue Sharing Funds during the
Board's fiscal years 1972-73 and 1973-74 were properly supported, classified, and
recorded and appeared to be for a public purpose. For information regarding a
payment to the Guidance Clinic of the Florida Keys, see continents under the
heading FINANCIAL OPERATIONS, Contributions.
CARD SOUND BRIDGE
(58) The Card Sound Bridge was accounted for as an enterprise fund since
the operation of the bridge was to be self-supporting.
(59) The responsibility for the operation of the bridge was delegated by
the Board to an appointed manager.
(60) Procedures for the collection, deposit, and accounting of tolls
appeared to be adequate with the exceptions that prenumbered receipt forms were
not issued for toll ticket book sales and excessive delay occurred between the
dates of collections for book sales and the dates of deposit to the bank. It
was noted that, on several occasions, these collections ranging in amount from
$50 to $1,000 were held for periods in excess of two weeks to as long as 27 work-
ing days.
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(61) As discussed in audit report No. 7658, pages 5 and 6, the cost to
construct the bridge was financed by the sale of revenue bonds. Pursuant to the
provisions of the bond resolution, transfers of cash balances were properly made
from the Operating Revenue Account to the interest and sinking accounts adminis-
tered by the trustee bank. The accounting records for the trust accounts were
kept by the Board on the basis of debit and credit memos and/or bank statements
from the trustee bank.
DEBT SERVICE FUNDS
(62) The financial transactions of the several bond funds were administered
by trustee banks as authorized by the related bond resolutions. Transfers to
the trustee banks required by the bond resolutions were properly made. The
Board's financial records were kept on the basis of debit and credit memos and/or
statements provided by the trustee banks.
(63) It was noted that the trustee bank for the 1965 Certificates of Indebt-
edness funds was not maintaining the proper account balances as required by the
trust agreement. At no time during the audit period were the balances in the
Sinking, Reserve, and Redemption Accounts in compliance with the required balances,
and at September 30, 1974, the Sinking and Reserve Accounts had excess deposits
of $7,117.85, and $9,881.67, respectively, while the Redemption Account had
$16,999.52 less than the required amount. The Board should monitor these accounts
and take the necessary action to insure compliance by the trustee bank.
(64) Comments concerning the Card Sound Bridge revenue bonds are made under
the heading CARD SOUND BRIDGE.
COMPENSATION
(65) Compensation of Board members was governed by Section 145.031, Florida
Statutes, and was correctly paid.
(66) The Supervisor of Elections was properly compensated in accordance
with Section 145.09, Florida Statutes.
RETIREMENT AND SOCIAL SECURITY
(67) Retirement and social security contributions were deducted from the
salaries of all eligible officials and employees and remitted to the proper
agency.
STATEMENT FROM AUDITED OFFICIAL
(68) In accordance with the provisions of Section 11.45(6) (d) , Florida
Statutes, a list of audit findings was submitted to the Mayor and the Clerk
of the Monroe County Board of County Commissioners. The Clerk's response to
the audit findings included in this report is shown on exhibit K.
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EXHIBITS AND SCHEDULE
The following exhibits and schedule are attached to and form a part
of this report.
EXHIBIT - A Combined Balance Sheet.
SCHEDULE 1-A Combined Analysis of Changes in Fund Balance - General and
Special Revenue Funds.
EXHIBIT - B Statement of Revenue - Estimated and Actual - General Fund.
EXHIBIT - C Statement of Expenditures Compared with Appropriations - General
Fund.
EXHIBIT - D Statement of Revenue - Estimated and Actual - Special Revenue
Funds.
EXHIBIT - E Statement of Expenditures Compared with Appropriations - Special
Revenue Funds.
EXHIBIT - F Statement of Revenue, Expenditures, and Fund Balances - Debt
Service Funds.
EXHIBIT - G Statement of Revenue and Expense - Estimated and Actual - Card
Sound Bridge.
EXHIBIT - H Analysis of Changes in Retained Earnings - Card Sound Bridge.
EXHIBIT - I Statement of Changes in Financial Position - Card Sound Bridge.
EXHIBIT - J Notes to Financial Statements - Summary of Significant Account-
ing Policies.
EXHIBIT - K Statement from Audited Official.
Respectfully submitted,
(Signed) Ernest Ellison, C.P.A.
Auditor General
Audit supervised by:
(Signed) Willard C. Hale
Audit made by:
(Signed) James C. Xetzle
13
EXHIBIT - A MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
COMBINED BALANCE SHEET
Set t ember yo 1974
GENERAL SPECIAL
FUND REVENUE
FUNDS
ASSETS AND OTHER DEBITS
Cash $2, 324, 284. 00 $826, 061 . 09
Cash with Fiscal Agents
Investments
Interest Receivable on Investments
Accrued Interest on Investments
Interest Receivable on Time Deposits 14, 918.00 1, 472. 75
Taxes Receivable, Delinquent - Net 13, 323. 60 7, 310. 76
Due from Other Governments 40, 333. 29 2, 204. 17
Unamortized Discount on Bonds Sold
Restricted Assets - Card Sound Bridge Funds:
Cash
Cash with Fiscal Agent
Investments
Interest Receivable on Investments
Accrued Interest on Investments
Due from Current Assets
Land
Buildings
Roads and Bridges - Net
Equipment - Net
Construction in Progress
Amount Available for Retirement of Bonds
Amount to be Provided for Retirement of Bonds
TOTAL $2, 392, 853. 89 $837. 048. 77
EXHIBIT - A
(Continued)
14
EXHIBIT - A
DEBT CARD SOUND GENERAL GENERAL
SERVICE BRIDGE PIED LONGTERM
FUNDS TUNDS ASSETS DEBT
$434, 995. 63 $ 29, 642. 15 $ $
126, 613. 00
138. 416. 13
3, 372. 2.5
91 . 24
4, 722. 36
880. 03
76, 570. 00
128, 374. 69
535, 900. 00
222, 224. 41
3, 245. 73
378. 55
14, 478. 1.5
2, 965, 321 . 63
4, 102, 254. 60
2, 183, 137. 09 3, 200, 429. 14
1 ,609. 64 1 , 575, 181 . 22
100, 962. 00
582, 477. 64
649, 522. 36
$709, 090. 64 $3, 195, 560. 41 $11 , 944, 148. .59 61 , 232, 000. 00
EXHIBIT — A
(Continued}
15
EXHIBIT - A MONROE COUNTY
(Continued)
BOARD OF COUNTY COMMISSIONERS
COMBINED BALANCE' SHEET
September jo, 1974
GENERAL SPECIAL
FUND REVENUE
FUNDS
LIABILITIES. RESERVES, AND FUND BALANCE!
RETAINED EARNINGS
Liabilities:
Current Liabilities (Payable from Current
Assets) :
Due to Restricted Funds $ $
Deposit in Escrow 25, 000. 00
Matured Bonds Payable
Matured Interest Payable
Current Liabilities (Payable from Restricted
Assets) :
Matured Interest Payable
Accrued Interest Payable
Other Liabilities:
Revenue Bonds Payable
Serial Bonds Payable
Total Liabilities $ 25, 000. 00
Reserves and Fund Balance/Retained Earnings:
Reserve Operating Account $ $
Reserve Payment of Long-term Debt
Investment in Fixed Assets
Fund Balance 2, 367, 858. 89 837, 048. 77
Retained Earnings
Total Reserves and Fund Balance/Retained
Earnings $2, 367, 858. 89 $837, 048. 77
T07'AI. $2, 392, 858. 89 $837, 048. 77
EXHIBIT - A
16
EXHIBIT - A
(Contvnued)
DEBT CARD SOUND GENERAL GENERAL
SERVICE BRIDGE FIXED LONG- TERM
FUNDS FUNDS ASSETS DEBT
$ $ 14, 478. 15 $ $
76, 000. 00
50, 613. 00
535, 900. 00
12, 458. 33
2, 600, 000. 00
1 , 232, 000. 00
$126, 613. 00 $3, 162, 836. 48 $ - - $1 , 232, 000. 00
$ $ 15, 164. 00 $ $
356, 243. 20
11 ,944, 148. 59
582,477. 64
$582, 477. 64 $ 32, 723. 93 $11 , 944, 148. 59 $ - -
$709, 090. 64 $3, 195. 560. 41 $11 , 944, 148. 59 $1, 232, 000. 00
EXHIBIT - A
17
SCHEDULE r-A MONROE COUNTY
BOARD OF COUNTY C0MMISSIONERS
GENERAL AND SPECIAL REVENUE FUNDS
COMBINED ANALYSIS OF CHANGES IN FOND BALANCE
For the Fiscal Year Ended September Ho, 1974
GENERAL SPECIAL
FUND REVENUE
FUNDS
Fund Balance, October 1 , 1973 $2, 012, 174. 94 $ 801, 188. 14
Additions:
Excess of Revenues Over Expenditures:
Revenues $4, 162, 893. 81 $2, 562, 455. 84
Expenditures 3, 763, 867. 52 2, 326, 595. 21
Total $ 399, 026. 29 $ 35, 860. 63
Transfers Increasing Fund Balance $ 118, 984. 45 $ - -
Total Balance and Additions $2, 530, 185. 68 $ 837, 048. 77
Deductions:
Transfers Decreasing Fund Balance $ 162, 326. 70 $
Adjustments Decreasing Fund Balance . 09
Total Deductions $ 162, 326. 79 $ - -
Fund Balance, September ;o, sand $2, 367, 858. 89 $ 837, 048. 77
SCHEDULE i—A
18
MONROE COUNTY EXHIBIT - B
BOARD OF COUNTY COMMISSIONERS
GENERAL FUND
STATEMENT OF REVENUE - ESTIMATED AND ACTUAL
For the PO scat Year Ended September As, 1974
BUDGET ACTUAL OVER
(Under)
BUDGET
Federal Revenue Sources:
Health, Education, and Welfare $ 11, 245. 00 $ 10, 045. 27 $ -I, 19o.7O
Other 632, 831. 78 446, 915. 39 -184,916. A9
Total $ 644, 076. 78 $ 456, 960. 66 8-187, 116. 12
State Revenue Sources:
Racing Moneys $ 213, 000. 00 $ 157, 750. 00 $ -50, 2 :0.00
Licenses 95, 900. 00 101, 709. 65 5, 809. 65
Matching Funds 12, 225. 00 -12, 225.00
Reimbursements 28, 027. 90 28, 027. 90
Other 427, 288.00 388, 224. 28 ,c, o6i. 72
Total $ 748, 413. 00 $ 675, 711. 83 $ -72, 701 .17
Local Revenue Sources:
Licenses $ 45, 000. 00 $ 60. 978. 90 $ 15, 978. 90
Taxes 1 , 912, 661. 42 1, 856, 629. 82 - 6, ogi. 6o
County Officers Fees 2, 000. 00 11 , 445. 46 9, 445. 46
County Officers Excess Fees 7, 616. 80 38, 147. 09 30, 530. 29
Earned Income 21, 225. 00 115, 718. 65 94, 493. 65
Grants, Donations, Reimbursements 115, 399. 36 81 , 007. 53 -q4. g1.8g
Sales 200. 00 124. 00 -76. 00
Other 408, 172. 00 846, 958. 62 438, 786. 62
Total $2, 512, 274. 58 $3, 011 , 010. 07 $ 498, 735. 49
Nonrevenue Receipts - Refunds $ 100. 00 $ 19, 211 . 25 $ 19, 111. 25
Total Revenue $3, 904, 864. 36 $4, 162, 893. 81 $ 258, 029. 45
EXHIBIT - B
19
EXHIBIT - C MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
GENERAL FUND
STATEMENT OF EXPENDITURES COMPARED WITH APPROPRIATIONS
For the Fiscal Year Ended September 3o, 1074
Function and Activity Appropriations Expenditures Balance
General Government:
Legislative and Administrative $ 374,302.57 $ 360,031.11 $ 14,271.46
Finance and Taxation 628.521.18 622,789.82 5.731.36
Judicial 207,598.93 178.104.51 29.494.42
Elections 93,287.63 80,058.53 13.229.10
Service Departments 42.274.17 34,562.30 7,711.87
Building Operation and Maintenance 841,449.20 502,449.53 338.999.67
Planning and Development 145.629.24 142,649.84 2,979.40
Other 37.542.59 36,975.73 566.86
Total General Government $2,370,605.51 $1.957.621.37 $ 412,984.14
Public Safety:
Police Protection $ 40.323.89 $ 40,232.37 $ 91.52
Correction 6,933.22 6.830.46 102.76
Protective Inspection 300.441.30 295,327.03 5,114.27
Other Protection 61.689.75 57,342.80 4,346.95
Total Public Safety $ 409,388.16 $ 399.732.66 $ 9,655.50
Public Works:
Road Construction $ 827.00 $ $ 827.00
Sanitation 35,121.80 14,443.88 20.697.92
Total Public Works $ 35.948.80 2 14,443.88 $ 21,504.92
Health. Welfare, and Social Services:
Health $ 166.052.44 $ 151,369.35 $ 14,683.09
Welfare 516,257.16 390,193.71 126,063.45
Economic Services 151.146.24 119.970,03 31,176.21
Total Health, Welfare, and Social Services $ 833,455.84 $ 661.533.09 $ 171,922.75
Culture. Recreation, and Conservation:
Recreation Facilities $ 168.658.49 $ 162.587.72 $ 6,070.77
•
Culture 360.938.46 360,898.56 39.90
Natural Resources 68,347.85 50,376.22 17,971.63
Total Culture, Recreation, and Conservation $ 592,944.80 $ $23.862.50 $ 24.082.30
EXHIBIT - C
(Continued) 20'n
MONROE COUNTY EXHIBIT — C
(Continued)
BOARD OF COUNTY COMMISSIONERS
GENERAL FUND
.STAT&MENT OF EXPENDITURES COMPARED WIT/I APPROPRIATIONS
Se/..tember no, Ic74
Function and Activity Appropriations Expenditures Balance
Public Service Enterprises:
Transportation 3 246.744.43 S 148,025.97 $ 98,718.46
Other 13,976.40 8,578.88 5.397.52
Total Public Service, Enterprises $ 260.720.83 $ 156.604.65 $ 104,115.98
Debt Service - Bonds $ 22.58 $ 22.58 $ - -
Refunds and Reserves:
Refunds $ 1,000.00 $ 46.59 3 953.41
Reserves 650, 563.10 650.563.10
Total Refunds and Reserves $ 651.563.10 $ 46.59 $ 651,516.51
To tat Expenditures 55,159,649.62 33.763.867.52 $1,395,782.10
EXHIBIT — C
21
EXHIBIT - D MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
SPECIAL REVENUE FUNDS
STATEMENT OF REVENUE - ESTIMATED AND ACTUAL
For the Fiscal Year Ended September Lo, ig74
BUDGET ACTUAL OVER
(Under)
BUDGET
Federal Revenue Sources - Other $ 291, 753. 55 $ 260, 770. 66 $-3o,g82.8o
State Revenue Sources:
Gas and Petroleum Taxes $ 799, 774. 60 $ 827, 260. 53 $ 27, 485. 93
Racing Monies 20, 000. 00 65, 500. 00 45, 500. 00
Other 22, 200. 00 85, 570. 00 63, 370. 00
Total $ 841, 974. 60 $ 978, 330. 53 $136, 355. 93
Local Revenue Sources:
Fines and Forfeitures $ 171, 600. 00 $ 248, 145. 74 $ 76, 545. 74
Taxes 1, 049, 981. 35 1 , 015, 614. 07 -49, o67.28
Earned Income 12, 750. 00 34, 534. 50 21 , 784. 50
Sales 500. 00 500. 00
Proprietary and Other Sources 4, 500. 00 7, 687. 50 3, 187. 50
Other 48. 23 48. 23
Refunds 16, 424. 61 16, 324. 61 -1oo.oa
Total $1, 255, 304. 19 $1, 322, 854. 65 $ 67, 550. 46
Nonrevenue Receipts - Insurance
Proceeds $ - - $ 500. 00 $ 500. 00
Total Revenue $2, 389, 032. 34 $2, 562, 455. 84 $173, 423. 50
EXHIBIT - D
22
MONROE COUNTY EXHIBIT — F.
BOARD OF COUNTY COMMISSIONERS
SPECIAI. REVENUE FUNDS
STATEMENT OF EXPENDITURES COMPARED WITH APPROPRIATIONS
Enr the Pascal Year Ended September Ao, ip7A
Function and Activity Appropriations Expenditures Balance
General Government:
Judicial 5 61,175.00 $ 33,035.21 $28,139.79
Planning and Development 841.00 841.00
Total General Government $ 62,016.00 $ 33.876.21 $28,139.79
Public Safety:
Police Protection 61,321,660.00 $1.319.694.49 $ 1,965.51
Fire Control 60,720.35 56.881.28 3,839.07
Total Public Safety $1,382,380.35 $1,376,575.77 $ 5,804.58
Public Works - Road Construction and
Maintenance $1,060,107.88 $1,010,748.64 $49,359.24
Health, Welfare, and Social Services -
Economic Assistance $ 32,815.60 $ 31,377.85 $ 1,437.75
Culture. Recreation. and Conservation -
Culture $ 8,753.00 $ 8,086.72 $ 666.28
Public Service Enterprises - Utilities $ 65,940.32 $ 65,930.02 $ 10.30
Total Expenditures $2,612.013.15 $2. 526,595.21 $65,417.94
EXHIBIT — F
23
EXHI B17' — F MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
DEBT SERVICE FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND FUND BALANCES
For the Fiscal Year Ended September 30, 1974
Total 1955 Meacham 1956 Meacham 1965 Building
Airport Airport Certificates
Revenue
Revenue
Bonds Bonds
Revenue:
General Property Taxes $126.288.39 $ $ 5126,288.39
Revenue from Use of Money and Property 37,345.44 8.437.55 4.525.12 24.382.77
Miscellaneous 22.58 22.58
Transfers 43,342.25 32,366.00 10,976.25
Total Revenue $206,998.66 $40.803.55 $15,501.37 5150.693.74
Expenditures:
Principal Payments 5 67.000.00 $284000.00 $ 9,000.00 $ 30.000.00
Interest Payments 51.521.00 4.366.00 2,167.50 44,987.50
Paying Agents Fees 81.84 81.84
Refunds .90 .90
Total Rxpenditures $118,603.74 532,366.00 $11,167.50 $ 75.070,24
n"xcess to Fund Balance $ 88.394.92 $ 8,437.55 $ 4,333.87 $ 75,623.50
Fund Balances, October 1, 1973 494,082.72 87.642.76 44.617.26 361,822.70
Fund Balances, September 30, 1374 5582.477.64 $96.080.31 $48,951.13 5437.446.20
EXHIBIT — F
24
MONROE COUNTY EXHIBIT - G
BOARD OF COUNTY COMMISSIONERS
CARD SOUND BRIDGE
STATEMENT OF REVENUE AND EXPENSE -
ESTIMATED AND ACTUAL
For the Fiscal Year Ended September Do, ag74
BUDGET ACTUAL OVER
(Under)
BUDGET
Operating Revenue - Tolls and Dockage $303. 200. 00 $283, 385. 35 $-19, 844. 6c
Less, Operating Revenue Deductions
Before Depreciation 92, 370. 52 71, 243. 73 -11 , 126.79
Net Operating Income Before Dep reel atinn $210, 829. 48 $212, 141. 62 $ 1 , 312. 14
Less, Depreciation 48, 830. 62 48, 830. 62
Net Operatcng Income $161, 998. 86 $163, 311. 00 $ 1, 312. 14
Add, Nonoperating Income - Profit on
Investments 5, 000. 00 25, 449. 92 20, 449. 92
Total Ned Income $166, 998. 86 $188,760. 92 $ 21 , 762. 06
Less, Nonoperating Expenses:
Interest on Revenue Bonds $161 , 958. 33 $161 ,958. 33 $
Paying Agents Fees 725. 45 725. 45
Total Nonoperatcng Expenses $162, 683. 78 5162, 683. 78 $ - -
Net Income to Retained [DI-flute-5 $ 4, 315. 08 $ 26, 077. 14 $ 21 , 762. 06
EXHIBIT - G
25
EXHIBIT - H MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
CAND SOUND BRIDGE
ANALYSIS OF CHANGES IN RETAINED EARNINGS
For the Fiscal Year Ended September ja, 1974
Balance of Retained Earnings, October 1, 1973 $_490 972. an
Additions - Net Income for Fiscal Year 1974 26. 077. 14
Total Balance and Additions 5-264, 855,01
Deductions:
Transfers to Restricted Assets 857, 256. 11
Due to Restricted Assets 14, 478. 15
Increase in Operating Reserve 2, 094. 00
Total Deductions 73, 828. 26
Balance of Retained Earnings, September qo, 1974 8-y-,8, 683. 27
EXHIBIT - H
26
MONROE COON II EXHIHI7' -
BOARD OF COUNTY COMMISSIONERS
CARP SOUND MR I MCI
STATEMENT OF CHANGES IN FINANCIAL POSITION
For the Fiscal Year Ended September qc, 1974
Source of Funds
Operations:
Net Income for the Year $163, 311. 00
Items not Requiring Current Outlay Funds -
Depreciation 48, 830.62
Total Operations $212, 141. 62
Nonoperating Income _ 25, 449. 92
Total $237, 591. 54
Application of Funds
Additions to Equipment $ 1 ,079. 50
Increase in Operation Reserve 2, 094. 00
Increase in Restricted Assets 57. 256. 11
Due to Restricted Assets 14, 478. 15
Payment Interest Revenue Bonds 161 , 958. 33
Paying Agents Fees 725. 45
Total 8237, 591. 54
EXHIBIT — I
27
EXHIBIT — J MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
NOTES TO FINANCIAL. STATEMENTS
SeItemher go, 1074
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
Monroe County is a political subdivision of the State
of Florida.
The accounting policies of the Monroe County Board of
County Commissioners conform to generally accepted accounting
principals as applied to governmental units. The following is a
summary of the significant policies.
Basis of Accounting
The accrual basis of accounting is followed(with minor
exceptions) by the Card Sound Bridge funds. The budgetary funds
(operating, special revenue and debt service funds) utilize the
modified accrual basis of accounting. Modifications in such method
from the accrual basis follow:
1. Revenue are recorded as received in cash
except for :
(a) revenues susceptable to accrual
and
(b) material revenues that are not
received at the normal time of
receipt.
2. Expenditures are recorded on an accrual basis
except for :
(a) disbursements for inventory type
items which are considered expend-
itures at the time of purchase;
(b) prepaid expenses are not normally
recorded;
(c) interest on long-term debt is recorded
as expenditure when due;
,Investments
Investments (with a few exceptions) were recorded at
face value with the appropiate contra accounts for premium or
discount.
Card Sound Bridge Funds
The fixed assets of the Card Sound Bridge are stated
at cost. Depreciation has been provided using the straight-
line method.
EXHIBIT —
(Continued)
28
MONROE COUNTY SXH/HIT -
(Contrnued)
BOARD OF COUNTY COMMISSIONERS
NOTES TO FINANCIAL S7'ATEMENT.S
September co, rg74
General Fixed Assets
General fixed assets are recorded as expenditures in
the general, Airport Operation and Maintenance, and Road and
Bridge Funds, at the time of purchase. Such assest are capitalized
at cost in the general fixed assets group of accounts except for
certain improvements other than buildings, including roads, bridge,
and curbs and gutters. Roads built by contract are included in
general fixed assets as a separate category.
No depreciation has been provided on general fixed assets.
EXHIBIT — ✓
29
EXHIBIT - K MONROE COUNTY
BOARD OF COUNTY COMMISSIONERS
STATEMENT FROM AUDITED OFFICIAL
For the Fiscal Year Ended September 30, 1974
Valph NI. .P IXite
CLERK OF THE CIRCUIT COURT
MONROE COUNTY,FLORIDA
KEY WEST,FLORIDA
RECORDER COIJNIY CLERK
COLLECTOR OF DELINQUENT TAXES COUNTY AUDITOR
May 6, 1976
Honorable Ernest Ellison
Auditor General
State of Florida
Office of the Auditor General
Tallahassee, Florida 323D4
Dear Sir:
Pursuant to your letter dated April 14, 1976 and received in
this office on April 19, 1976, I am nclosing herewith our
responses to the preliminary and tenative advere audit findings
which may he included in the audit of the Board of County Com-
missioners, Monroe County, for the period of October 1, 1973 to
September 30, 1974.
If you have any questions concerning my responses, or if I can
furnish any additional information, please do not hesitate to
contact me.
very truly yours,
_—R IcA t. White( -
Clerk of Circuit Court
and ex
officio Clerk
Board of County Commissioners
Monroe County
RWW/DLK/vp
cc: file
Enclosure
`Happy Birthday
o __
•� I
—
'AMERICa
EXHIBIT - X
(Continued)
30
MONORE COMM ESfll BLr - K
(Con tinuod)
BOARD OF COUNTY COMMISSIONERS
E9'AiW4dPT FBCId AUIDITSD CGFICIDL
For the Fiscal Year Ended Septemcer' 50, 2J39
MONROE COUNTY BOARDOF COUNTY COMM F SS TON ERS
Responses and Proposed Corrective Action
Covering Audit Period
October 1, 1973 - September 30, 1974
Audit
/deport
Paragraph 1
Number
The negative retained earnings in the Card sound Bridge
Fund is the condition
created
c d ad by the
terms
enes of the Revenue Bond
Resolution and isaccordance with generally accepted account-
ing
n-
9 principles a outlined in "Audits of State and Local Govern-
mental Units, Industry
rtified Audit Guide" published ed by theighic 1n
(7) institute of Certified Public Accountants,
inc. , copyright 1974-
The error in accumulated depreciation has been corrected
in fiscal year 1974-75 as a prior period adjustment to retained
earnings. (Copy of 1974-75 Analysis of Changes in Retained
'�- Earnings is attached, Exhibit 1)
2
At a workshop meeting on January 20, 1575, the Board of
County Commissioners directed the Clerk to forwardta letter to
each garbage franchise holder regarding a "Profit and Loss State-
ment" to accompany each franchise fee for payment.
On January 27, 1976, the Clerk sent a memorandum [
the Commissioners indicating that the request for "Profitand Loss
_ ent" would be sufficient, and requested them to formally
require a certified independent audit of the franchise operations.
(12) pursuant to this memorandum the Board directed their
Attorney to notify each franchisee that certified independent
audits would be required.
After numerous discussion with the franchise holders,
the Board at a regularn meeting on rch 30, 1976, rescinded their
action to require the certified independent audit and require
instead copy of the franchisee's Taxand Company St We Return
memorandum authenticated by a C.P.A.cs (we have enclosed copy fof the s
memorandum, correspondence, and certified copy of excerpts of
the BoardMeeting icfnrred to above, Exhibit 2)
3
my memorandum toR. Kenneth Agnew,
Airport Manager, dated February 6, 1976,r(copy attached, Exhibit 3)
my office isin f
the process of transferring the hi/ling and
collection functions which have been hiceprieelfy administered by
the Airport Manager's Office to my office. We feel that the
billing system needs many revisions and we rmaking those revisions
which we feel arenecessary
n aty create greater cot internal control.
s
An example of this is that tho Airport Manager s. now taking step-
to have the utilities that serve the various lease ho ins. fixed-
base operators,
t to billen Coe operators directly instead of
the current method,etc.,
the County Airportemployees
take meter
readings, compute the char qua, and bill the operators.
the accounts receivable w handled by the
Clerk's Office during ord audit herioa, se $850.00 accounts
receivable yea wasnotrecorded in the Board's Financial Report for
fiscal year 19934
My office has informed Mr. Paul Sawyer, County Attorney,
of the technical violation of the State Constitution resulting
from late lease payment and we
are now
requiring that all new leases,
and renewals, require payment of rental in advance, and also require
EXIQBIT - K
(Continued)
31
EXHIBIT - K MONO RE COUNTY
(Continued)
BOARD OF COUNTY COMMISSIONERS
STATEMENT FROM AUDITED OFF/CZAL
Audit For the Fisco/ Year Ended September 40, 1974
Report
Paragraph
Number
an initial one
month deposit which will preclude the technical
violations of the Slate Constitution by virtue of late payments.
In the memo referred to above, and during my subsequent
meeting with the Airport Manager, I have asked him to request
the County's Airport Consultant Firm
m to prepare a revised schedule
of fees and to present same to the Board for their action.
(13-14)
A log is presently being kept by the Airport employees of
all take-offs and landings by scheduled airlines and where necessary
additional charges are being made. In addition all w leases and
lease renewals are requiring lessees to submit a monthly report of
take-offs and landings.
4
The Key' West Office of the Monroe county Building and
Zoning Department forwards to the Clerk's Office a copy of all
receipts written by that office. These copies are then compared
to the deposits for verification. The Clerk who performs this
function signs the back of the receipt hook acknowledging the
accuracy of the deposit.
However, the Keys Offices (Marathon, and Tavernier) were
forwarding to the Clerk's Office only the number of the receipts
written at those offices. After discussion with Mr. Garland
Smith of the Key West Office, this procedure has been revised. The
Keys offices are now
sending to the Clerk's Office a listing of the
receipts w This listing includes: receipt numbers, party
to whom written, type of receipt, and amount. This listing is
now compared to the deposits. (A sample copy of the listing
referred to above is attached, Exhibit 4)
(15)
The Monroe County Library provides the Clerk with a
depository Receipt F on which is posted the receipt number which
applies tothat deposit. The Library has the following types of
receipts: fines, non-resident
- sident fees, Xerox machine income, and lost
book charges. The discrepancy noted in the Library receipts may
have resulted from the improper posting of receipt number to the
Depsoitory Receipt Torm. Mrs. Russell, the Library Administrator,
has been consulted OIL
this point and she assuresthat she has
taken stepsn to insurethat the appropriate r eipc numbers are posted
to the proper deposit. Further. she is ently maintaining a
ledger towhich she posts the daily receipts. This ledger is then
totaled and used as a basis for the bank deposit. The Monroe County
Library also operates branches in Marathon, kslamorada, and Key
Largo. These branch offices forward to the staff at the main office
a and showing the receipts written by receipt number, date, type
and amount, together with a money order for the total amount of the
receipts. The staff at the main office then compares the totals
of the receipt report with the amount
of the money order and any
discrepancies are investigated. (Copy of report of receipts is
attached,, Exhibit 4A)
5
The Transportation and Guidance, and Emergency Employment
Act Grant were the first two Grant Programs, of any substance, which
Monroe County became involved in.
The Transportation and Guidance Program began in fiscal
year 1972-73 and continued into fiscal year 1973-74. Emergency
Employment Act Grant began in fiscal year 1971-72 and continued into
fiscal year 1973-74.
(16)
During the early days of Monroe County's grant involvement,
much of then financial reporting and record keeping was done by
persons other than accounting department personnel such as Grant
Administrators and members of their staff.
This problem became apparent to me quite some time ago and
EXHIBIT - X
(Continued) 32
MONROE COUNTY sXHIIiIT - h
(Continued)
BOARD OF COUNTY COMMISSIONERS
Z�STATEMENT FROM ADDITE0 OFFICIAL
Audit
Report s or the Fiscal Year Ended September 30, 1974
Paragraph
Number
by a m m
tndum dated April 19, 1974 (copy rand, Exhibit 5)
which l directed to all County Department Heads, I requested that
all of the financial processes concerning Grant Programs be turned
over to my office,
As of this date, and to the hest of my knowledge, this
has been accomplished.
(16)
The following accounts and records are established for
each Grant Program:
(1) Financial reports and project records which are
required by each individual Grant Program.
(2) Separate Revenue and Expenditure Accounts.
(3) Separate General Ledger Accounts (Accounts Receivable,
Liabilities, etc.)
Each Grant Program has a separate group of accounts and
they are not co-mingled with any other Board accounts.
6
T The two Bureau of Criminal .Justice Planning and Assistance
ants. ing Drug and Alcohol Abuse Programs which occured
d[ poi
during fiscal years
r n ed and sequent were handled very am
as
by all parties concerned. subsequent audit of the Program,
as
administered by e Gui ame Clinic of the Florida Keys, disclosed ed
liability to LEAA in the amount of C5i89
7.0
0. These findings
(17) were subsequently contested by the Clinic and after considerable
discussion and additional investigation by r,A a Auditors, the
liability wasreduced to $1,445.55.
state. tsHowever, at the time the
preparation amiuno of the financial statements of fiscal year 19]3-]4, the
exact amount of this liability was still in contention.
1 his liability was satisified in fiscal year 1974-75 by
Warrant No. 3551, dated September 30, 1975, (copy of Warrant referred
to above isattached, Exhibit 6) .
7
(18) Any funds currently received
o
ved by the Board of county
Commissioners to be transferred tsecondary recipient ar
deposited into a Board bank accoun a t and paid out by County Warrant.
8
(21) Instances where goods and services were provided to the
Board without a written contract were duly noted and corrective
action has been taken.
9
(22) The Board is eently in the process of up-dating its
personnel pay plan. The Board has also employed a Personnel
Director and established a Personnel Department to administer the
personnel policies of the Board.
10
Leave records were kept manually during the audit
period. The payroll, including leave records, has been computerized
and these records
ords arenow maintained automatically with manual
verification and back-up process.
(23)
L The Personnel Director is currently
r ently formulating a leave
procedure which will include the use of formal Leave Request Forms.
EXHIBIT - K
(Continued)
33
EXHIBIT - K MONORE COUNTY
(Continued)
BOARD OF COUNTY COMMISSIONERS
5941'1'IMMT ER014 AUDITED OFP'LCIAf
For the Fiscal Year Ended September 30, 19?4
Audit
Report
Paragraph 11
Number
(24) Information ela o County owned Tax icates
ate
which are eligible [or foreclosure, has been turned over to the
County Attorney for appropriate action.
12
(25) During the audit period there were nstances where
ants were made to vendors for rents, rector etc. , upon a
voucher approved by the Social Service Director. The supporting
documentation was
s el now and maintained inthe Social Service
Department. We requiring that nil supporting documentation
be forwarded to the Accounting Department to be attached to the
nffloe copy of the County Warrant for audit purposes.
13
The problem of accounting for public funds paid pursuant
to lump sum contracts
acts has been a particular concernme.to By
letter dated May 20, 1974, (copy attached, Exhibit 13) Thave
requested an opinion from the Attorney General, the Honorable
Robert 1.. Shovin, relative to this problem.
received a reply which referred toseveral previous
opinions on the me subject: oneof which was Opinion No. 073-113
referred to in your audit report
(29-30)
Accordingly, all of the contracts with outside agencies
or organizations which are performing County functions have been
placed on
srmbufseable" basis. They now provide that these
agencies will submit a certifcertified list of expenditures for which
they desire [.imbursement tothe Clerk, who will pre-audit the list
and if dammed appropri ate make reimbursement (attached sample copy
of revised contact and list of expenditure, Exhibit 13A) .
14
(36) On November 5, 1975, the Board, at the recommendation
of the Clerk, hired anInsurance Clerk under the CETA Program.
This individual had been previously employed In the insurance
industry and has a comprehensive background inInsurance and
ri sk
management. This individual, with assistance from Employers
Insurance management Corp. , the county'sl insurance Consultant,
has completely re-organized the County's Insurance Register and
is maintaining it on a daily basis.
15
(39) The Accounting Department personnel who are esponsible
for preparing the
o
monthly report of depository balances pursuant to
Section 135.02 (2) , F.S
not aware that cash on deposit with
Trustee Ranks pursuant to Board resolutions should be included in
that report. These balances are now being reported monthly.
16
The confusion and lack of control concerning
ing receipts
eipts
which existed during the audit period was result of the multipicity
of receipts being printed and used by various County departments.
My office has called in all of the unused receipt books printed
for County departments, with the exception of the Library System,
(40) and we have had a new serie
of receipt books printed. (Copy of
printers affidavit attached, Exhibit 16)
Receipt books have now been assigned to owho were
requested to sign a receipt for same. A log is being maintained
which reflects to which department receipt books are issued, the
HIT - X
(Continued)
34
MONORE COUNTY EXHIBIT - K
(Continued)
BOARD OF COUNTY COMMISSIONERS
Audit STATEMENT FROM AI/DITEF OFFICIAL
Report For the Fiscal Year Ended September 30, 1979
Paragraph
Number
series of receipt books assigned, the date a signed and the date
(40) returned. We also have on file a copy of the receipts signed by
J_ County departments for the assignment of books.
17
The Board's Building and Zoning Department is
assigned receipt blanks by the Accounting Department and these
are controlled as out-lined above.
By memorandum dated February 6, 1976 (copy attached,
Exhibit 17) andin discussion with Building and Zoning Department
personnel, I cited many of the problems concerned the issuance and
control of Building P mit Forms and the proper execution of
Applications for Permits.
I have been informed by Building and Zoning Department
personnel that the following steps have been taken:
(1) Printers affidavits are being obtained and a log
is being maintained to control the issuance
and assign-
ment of Building Permit Forms to the Key West, Marathon,
and Tavernier branches of the Building and Zoning
Department. Building Permits a e being coded in the
(41) following m A - Key West; B - Marathon; C -
Tavernier, to assist in the proper assignment and
control of the form.
(2) All offices have been cautioned as to the proper
execution of the Applications. All Applications are
sent o the Key West Office where they are checked for
completeness and accuracy in pricing.
By a memorandum to Mr. Kermit Lewin, head of the Contractor
r
License Division,
dated February 6, 1976 (copy attached, Exhibit 17A) ,
I pninued out the deficiencies in the record keeping concerning the
issuance of Competency Cards.
I have been informed by Mr. Lewin and his staff that a
reference to the receipt
eipt number and date is being recordedon
each
Competency Card and the number of the card issued is written on the
face of the receipt, thus maintaining a cross-reference between the
Competency Cara and the receipt of fees for same.
18
(42) The County is r ently maintaining a monthly Equipment
Cost sheet onits vehicle. The Cost Sheet is filed with the Clerk
(copy attached, Exhibit 18) .
19
(43) The Accounting Department is now
controlling the assign-
ment
and useof gasoline credit cards. A log is maintained indicating
the card number, to whom the card is assigned, and a list of the
authorized users.
20
By a memorandum dated February 6, 1976 directed to Mr.
Robert Don ', Director of the Road Department, (copy attached,
Exhibit 201 I out-lined the necessity
c
sity of maintaining accurate and
complete Daily Work Reports and Job Records to control and account
for largo purchases of road materials.
(44)
Mr.
Dopp informs me that he has taken the necessary
corrective action. I amenclosing a sample copy of the job cost
record for roads that is sently in use together with the Daily
Work Reports. (See Exhibit 20A)
EXHIBIT - K
(Continued)
35
EXHIBIT - K MONORB COUNTY
(Continued)
BOARD OF COUNTY COMMISSIONERS
STATEMENT FROM AUDITE00 OFFICIAL
Audit roe the Fiscal Year Ended September 30, 1974
Report
Paragraph 21
Number
Compliance with Chapter 215.19 .S. concerning the rate
of wages for laborers, mechanics, and apprentices, iionso for on
Public Works,
was made a part of
t i e specifications for the
construction of the courthouse facilities marathon. Therefore,
(45) the provisions of this Chapter were not called to the attention
of prospective bidders pursuant to Chapter 215.19 (B) F.S.The contractor has provided the County with an affadavit
relative to his compliance with the provisions of chapter 215.19
during this construction project (copy attached, Exhibit 21) .
22
On October 8, 1975, the Board at the recommendation of
the clerk, employed anindividual under the CETA Program to
completely re-organize and up-date the s
t unty's general Fixed
Assets subsidiary accounts which includes occupied and n - .cupied
lands, buildings and equipment (tangible personal property) .
A new listing has now been prepared for occupied and
copied lands and an adjusted total has been developed by
virtue of the following:
(I) The four lots which wereused assecurity for the
(46) paving of streetsin
a
subdivision and which w sub-
sequently released by the County have been removed from
the total.
(2) The East Martello Battery site has been included
in the land totals at the Property Appraiser's valuation
of S234,800.00.
(31 The nine parcels of land that were not included
in the land listing and totals have been added and
copies ofthe deed of conveyance to the County have been
disclose.. in addition other omitted parcels have been
disclosed by ourbeen research and they have also uncluded
on the list andad added the control total.
23
(47) The "Old city Hall" which was veyed t0 the Historic
Key West Preservation Board has been removed from the County's
Property records.
24
The omission
of fiscal year 1972-73 capital expenditures
has been corrected on the County's property records.
Our research has disclosed the fact that the difference
between the increases to the Fixed Asset Account for buildings and
the corresponding
esponding charges to the Capital Outlay Expenditure Accounts
was the result of the following:
(1) Misclassification of expenditures (maintenance -
Capital Outlay) .
(48) (2) Improper capitalization of expenditures in the Bui lding
Accounts.
The Building Accounts have now been purged of erroneous
items and items which o t be supported. We have made notations
on
the various
Capital Outlay and Maintenance Expenditure Accounts.
A worksheet is available for audit purposes.
The General Fixed Assets Accounts have been increased by
$55,651.10 which wasexpended by the State Department of Natural
Resources for County parks at Sombrero and Little Duck Key. Infor-
mation concerning these expenditures was furnished to Board personnel,
EXHIBIT - X
(Continued) 36
HONORE COUNTY EXHIBIT -
(Continued)
BOARD OF COUNTY COMMISSTONERS
Audit STATEMENT FROM AUOliED OFFICIAL
Report For the Fiscal Year Ended September 30, 1974
Paragraph
Number
(48) however, was not furnished to the Clerk's Accounting Department.
25
(49) The Construction Progress Account in the m, of
5100,962.00 concerning the construction of the marathon Courthouse
has been removed from the Board's property records.
26
The mathematical errors and omitted transactions
n the t unty's tangible personal property records have been
corrected and work-sheets are available for audit.
(50) We are currently
ently using decalomania labels asa permanent
method of marking as provided by Section 10.410 (7) F.S. , Rules of
the Auditor General.
27
(51) The Board of County Commissioners is currently inthe
process of hiring a consulting firm which will, among other
things, study and make r concerning
ing the most economical
method of providing transportation for County employees for conduct
of County business. Recommendations should be available by
July, 1976.
28
The a the Actual use Report for Federal Reserve
Sha
ring Funds for the fiscal year ending June 30, 1973 appeared
to have been the result
Coue of a confusion caused by the differences
in the Federal and County fiscal years. and a misunderstanding
hea individual
of the purposes and objectives
uf the report by the individual
who wagpreparing them a[ that time.
(5 ) Worksheets are w being maintained that reflects
Revenue Sharing Funds on the basis of the the Federal fiscal year
and are available for audit.
The misclassification of expenditures noted on Actual
e Report No. 4 has been corrcted by the filing of a corrected
Actual Use Report with the Office of Revenue Sharing (copy attached,
Exhibit 28).
29
(60) The responsibility for the collection, deposit, and
accounting for toll ticket book sales has been transferred from
the Card Sound Bridge Manager to the Clerk's Accounting Department.
Pre-numbered receipts are written
ritten for all toll ticket book sales
and deposits are made on a daily basis as are all other County
deposits.
30
(63) By a letter dated J ary 30, 1976, wenotified the
Trustee Bank of the descrepencies in the account balances in the
1965 Certificate of Indebtedness Fund. Subsequent to my letter
the account balances were
adjusted to conform t0 the provisions of
the Bond Resolution, We have been notified by letter from the
Trustee Rank dated February 24, 1976, that steps have been taken
to avoid this in the future (copy of letters attached, Exhibit 301 .
EXHIBIT - X
37