Report No. 09228, Former Sheriff i
9228
STATE OF FLORIDA
OFFICE OP THE AUDITOR GENERAL
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*** MONROE COUNTY ***
FORMER SHERIFF
For the Period
May 1 , 1975 to January 3, 1977
9228
STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
Report on Audit
of the Accounts of the
MONROE COUNTY
FORMER SHERIFF
For the Period
May 1, 1975 to January 3, 1977
Dated: March 14 , 1978
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"Nsa STATE OF FLORIDA
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D Y'e OFFICE OF THE AUDITOR GENERAL
Tallahassee, Florida
EN NEST ELLISO N,C.P. A. March 14 , 1978
AUDITOR GENERAL
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
HONORABLE R. L. "BOBBY" BROWN
MONROE COUNTY
FORMER SHERIFF
For the Period Beginning May 1, 1975,
and Ending January 3 , 1977,
the End of His Term of Office,
and Subsequent Transactions to September 30 , 1977,
Par.
No.
and present this report thereon.
(1) The objectives of this audit were: (1) to express an
opinion on the financial statements for the period ended January 3,
1977, and (2) to report violations of law and other matters required
by Section 11.45(6) (c) , Florida Statutes, that may be determined by
audit tests.
(2) My examination did not include transactions relating. to the
Inmate Trust Fund as it constituted private funds that were not
commingled with official funds.
(3) Since the income of the Office is reported on the basis of
fiscal years, the results of operations of the General Fund are shown
for the entire fiscal year 1974-75.
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Par.
No.
SCOPE AND OPINION
(4) I have examined the financial statements of the various
funds and account groups of the Office of the Monroe County former
Sheriff for the fiscal years 1974-75 , 1975-76 , and 1976-77 to January
3 , 1977 . 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 considered
necessary in the circumstances.
(5) In my opinion, the accompanying financial statements present
fairly the financial position of the Office of the Monroe County
former Sheriff at January 3 , 1977 , and the results of operations of
the General Fund for the fiscal years 1974-75, 1975-76 , and 1976-77 to
January 3, 1977 , and the cash receipts and disbursements of the Trust
and Agency Funds for the period from May 1, 1975, to January 3, 1977,
in conformity with generally accepted accounting principles applied on
a consistent basis.
FINANCIAL POSITION
(6) The financial position of the various funds and account
groups at January 3 , 1977 , is shown on exhibit A.
(7) Liabilities and fund balance at January 3 , 1977 , and the
transactions in settlement thereof were as follows:
Liabilities and Fund Balance at January 3 , 1977
Due to Former Sheriff $ 202 .47 (1)
Cash Bonds Held 48,528.25
Civil Deposits 7,909 .61
Due to Board of County Commissioners 62.50
Due to Clerk of the Circuit Court 345 .00
Due to Department of Administration 10,049 .68
Checks Written Prior to January 3 , 1977 , and not
Paid by Bank Prior to Transfer of Bank Account:
Boulevard Bank 102 ,201 .62
Key West State Bank 9,766 .27
Marathon Bank 153.06
Islamorada Bank 233 .60
First National Bank of the Upper Keys 111.35
Checks Written Prior to January 3 , 1977 , and Paid
After January 3, 1977 , by Bank Prior to Transfer
of Bank Account - Islamorada Bank 7,851 .73
Fund Balance, General Fund 51,922 .82
Total $239 ,337 .96
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Par .
No.
Resources Transferred to Successor
Cash on Hand $ 880.00
Cash in Banks:
Boulevard Bank - Account Transferred
January 4 , 1977 154 ,126 .91
Key West State Bank - Accounts Transferred
January 4 , 1977 48 ,431.15
Marathon Bank - Account Transferred
September 30 , 1977 153 .06
Islamorada Bank - Account Transferred
September 30, 1977 8,085.33
First National Bank of the Upper Keys -
Account Transferred September 30 , 1977 111.35
Deposits in Transit at January 3 , 1977 , and
Credited by Bank After that Date - Key West
State Bank 27,550.16
Total $239,337.96
Note: (1) This amount is the gross salary that was due to the former
Sheriff for the last three days of his term in office.
The net salary amount was paid to him by official check
on January 15, 1977.
FINANCIAL OPERATIONS - GENERAL FUND
Revenues and Expenditures
(8) A statement of budgeted and actual revenues and expenditures
for the General Fund is shown on exhibit B.
(9) Pursuant to Sections 116 .03 and 218.36 , Florida Statutes,
annual reports were properly submitted to the Board of County
Commissioners and the Department of Banking and Finance. Unexpended
budget balances were promptly refunded to the county as provided in
Section 30.50 , Florida Statutes .
(10) The former Sheriff and several of his deputies received
monthly car allowances ranging from $50 to $150 for the official use
of their private vehicles. These payments were authorized by Chapter
65-1062 , Acts of 1965.
(11) Expenditures for investigations are shown on exhibit B.
Section 30 .50 (2) , Florida Statutes, provides that the Sheriff may draw
a check to himself for the expense of an investigation, and may note
on the voucher only the information that he may consider proper to
divulge. Accordingly, absent the usual detailed and documented
voucher , my examination of investigation expense included only a
review of the check drawn to the Sheriff and did not include a
determination of the ultimate beneficiary of these funds.
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Par .
No.
(12) Expenses were generally well supported by itemized invoices
or payrolls.
Compensation
(13) The former Sheriff 's compensation was correctly withdrawn as
provided in Chapter 145, Florida Statutes.
Retirement and Social Security
(14) Proper amounts were deducted for retirement and social
security contributions and these were remitted on a timely basis .
Insurance
(15) Insurance coverage included automobile liability, automobile
comprehensive and collision, false arrest liability, bodily injury,
property damage liability, and a blanket public employees faithful
performance bond .
FINANCIAL OPERATIONS - TRUST AND AGENCY FUNDS
(16) A statement of the cash receipts, disbursements, and
balances for trust collections in the Trust and Agency Funds is shown
on exhibit E.
SEIZED AND ABANDONED PROPERTY
(17) Although the records and procedures were improved over those
discussed in audit report No. 8875 , paragraph 22 , they were still not
adequate at September 23 , 1977 , to properly control and account for
lost, abandoned, unclaimed, and seized personal property. The forms
showing receipts of this property were not prenumbered, the property
was not kept at a central location, and periodic inventories of this
property had not been taken. In his reply dated November 19 , 1976 , to
similar comments in the prior audit report, the former Sheriff stated,
"Periodic inventories are now being taken by someone independent of
the custodian and a written policy has been implemented." The former
Sheriff in his written response to this comment stated that periodic
inventories were being taken; however , it should be noted that the
records of seized and abandoned property which were available for
audit did not substantiate that an inventory had been taken. The
taking of periodic inventories identifies the property items on hand
at a particular time; however, it would be necessary to verify the
items listed during the inventory with the items shown on adequately
kept detailed records before it could be satisfactorily determined
that all items were accounted for.
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Far .
No.
RECORDS AND INTERNAL CONTROL
(18) Financial records generally complied with those prescribed
under the Florida Sheriff's Finance System.
(19) Monthly bank reconciliations were made for all accounts and
collections were usually deposited intact.
(20) Improvements were noted in the system of internal control
through the segregation of accounting functions among the bookkeeping
staff.
(21) Records and procedures instituted to account for uniform
traffic citation forms were adequate.
GENERAL FIXED ASSETS
(22) A statement of general fixed assets is shown on exhibit F.
(23) Fixed assets consisted of motor vehicles, office equipment,
furniture and fixtures, and various law enforcement equipment.
(24) Improvements were noted in the records, required by Chapter
274 , Florida Statutes, and rules adopted pursuant thereto, to account
for fixed assets. However, the control accounts required by Section
10.410 (5) , Rules of the Auditor General, were still not being
maintained as of September 1977 . On November 19, 1976 , in his reply
to this deficiency in the prior audit period (see audit report No.
8875, page 18, paragraphs 7 and 37) , the former Sheriff stated that
control accounts were established and that general procedures to
ensure the accuracy of these had also been established. The former
Sheriff in his written response to this comment again stated that
control accounts were established. However, it should be noted that
although the former Sheriff may have started procedures to establish
control accounts for tangible personal property (fixed assets) owned
by the Sheriff 's Office, the records kept did not reveal that such
control accounts had been established.
STATEMENT FROM AUDITED OFFICIAL
(25) In accordance with the provisions of Section 11.45 (6) (d) ,
Florida Statutes, a list of audit findings was submitted to the former
Sheriff. The former Sheriff's response to the audit findings is shown
on exhibit I .
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EXHIBITS
The following exhibits are attached to and form a part of
this report:
EXHIBIT - A Combined Balance Sheet - All Funds.
EXHIBIT - B General Fund - Statement of Revenues and Expenditures.
EXHIBIT - C General Fund - Statement of Changes in Fund Balance.
EXHIBIT - D Trust and Agency Funds - Balance Sheet.
EXHIBIT - E Trust and Agency Funds - Statement of Cash Receipts and
Disbursements.
EXHIBIT - F Statement of General Fixed Assets.
EXHIBIT - G Summary of Significant Accounting Policies.
EXHIBIT - H Notes to Financial Statements.
EXHIBIT - I Statement from Audited Official .
Respectfully submitted,
(Signed) Ernest Ellison, C.P.A.
Auditor General
Audit made by:
(Signed) Willard G. Hale
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MONROE COUNTY EXHIBIT - A
FORMER SHERIFF
COMBINED BALANCE SHEET - ALL FUNDS
January 3, 1977
General Trust and General
Fund Agency Fixed
Funds Assets
ASSETS
Cash on Hand $ 200.00 $ 680.00 $
Cash in Banks 51,925.29 66,215.04
Fixed Assets 294,586.98
TOTAL $52,125.29 $66,895.04 $294,586.98
LIABILITIES AND FUND BALANCE
Liabilities:
Due to Former Sheriff $ 202.47 $ $
Cash Bonds Held 48,528.25
Civil Deposits 7,909.61
Due to Board of County Commissioners 62.50
Due to Clerk of Circuit Court 345.00
Due to Department of Administration 10,049.68
Total Liabilities $ 202.47 $66,895.04 $ - -
Fund Balance 51,922.82
Investment in General Fixed Assets 294,586.98
TOTAL $52,125.29 $66,895.04 $294,586.98
See accompanying summary of significant accounting policies and notes to
financial statements.
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MONROE COUNTY EXHIBIT - C
FORMER SHERIFF
GENERAL FUND
STATEMENT OF CHANGES IN FUND BALANCE
October 1, 1974 to January 3, 1977
Fiscal Year Ended
9-30-75 9-30-76 9-30-77
to 1-3-77
Fund Balance, Beginning $2,160.01(1) $ 6,601.64 $13,637.82
Add:
Excess of Revenues Over Expenditures,
Exhibit B 6,601.64 13,637.82 51,922.82
Total Balance and Additions $8,761.65 $20,239.46 $65,560.64
Deduct:
Budget Balance Reverted to Board of
County Commissioners 2,160.01 6,601.64 13,637.82
Fund Balance, Ending $6,601.64 $13,637.82 $51,922.82
See accompanying summary of significant accounting policies and notes to
financial statements.
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EXHIBIT - D MONROE COUNTY
FORMER SHERIFF
TRUST AND AGENCY FUNDS
RAl,ANCE SHEET
January 3, 1977
Total Bond Individual Other
Account Depositors Suspense
ASSETS
Cash on Hand $ 680.00 $ 215.00 $ 465.00 $
Cash in Banks 66,215.04 48,313.25 7,507.11 10,394.68
TOTAL $66,895.04 $48,528.25 $7,972.11 $10,394.68
LIABILITIES
Cash Bonds Held $48,528.25 $48,528.25 $ $
Civil Deposits 7,909.61 7,909.61
Due to Board of County Commissioners 62.50 62.50
Due to Clerk of Circuit Court 345.00 345.00
Due to Department of Administration 10,049.68 10,049.68
TOTAL $66,895.04 $48,528.25 $7,972.11 $10,394.68
See accompanying summary of significant accounting policies and notes to financial
statements.
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MONROE COUNTY EXHIBIT - E
FORMER SHERIFF
TRUST AND AGENCY FUNDS
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
May 1 , 1975 to January 3, 1977
Total Bonds Fine Individual Other
Account Account Depositors Suspense
Cash Balances. May 1, 1975 $ 55,825.71 $ 34.195.25 $ 75.00 $ 11,533.82 $ 10,021.64
Receipts:
Cash Bonds $242,317.50 2242,317.50 $ $ $
Deposits for Meals 7,771.70 7.771,70
Deposits for Fees 108,279.22 108,279.22
Social Security Payments 199,212.50 199.212.50
Other 1,963.16 1.963.16
Total Receipts $559.544.08 $242.317.50 $1,963.16 $116,050.92 $199,212.50
Total Cash Available $615,369.79 $276,512.75 $2,038.16 $127,584.74 $209,234.14
Disbursements:
Depositors $289,643.81 $227,984.50 $ $ 61,659.31 $
Board of County Commissioners 59.991.48 2,038.16 57,953.32
Department of Administration 198,839.46 198,839.46
Total Disbursements $548.474.75 $227,984.50 52,028.16 $119.612.63 $198,839.46
Cash Balances. January 3, 1977 $ 66,895.04 $ 48,528.25 $ - - $ 7,972.11 $ 10,394.68
See accompanying summary of significant accounting policies and notes to financial statements.
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EXHIBIT - F MONROE COUNTY
FORMER SHERIFF
STATEMENT OF GENERAL FIXED ASSETS
January 3, 1977
General Fixed Assets:
Equipment $294,586.98
Investment in General Fixed Assets from
General Fund $294,586.98
See accompanying summary of significant accounting policies
and notes to financial statements.
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EXHIBIT - G
MONROE COUNTY
FORMER SHERIFF
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
January 3, 1977
The significant accounting policies followed by the Monroe
County former Sheriff are described below to enhance the usefulness of
the financial statements to the reader.
Basis of Accounting
The former Sheriff' s financial records were maintained on
the cash basis of accounting whereby revenues are recognized only when
cash is received and expenditures are recognized when cash is
disbursed. Except for the salary due to the former Sheriff for his
last three days in office, the accompanying financial statements are
presented on the cash basis of accounting.
Budget System
Sections 30.49 and 30 .50 , Florida Statutes, require a
sheriff to submit to the board of county commissioners a proposed
budget of expenditures necessary to carry out the duties of his
office. The sheriff is to receive pro rata monthly distributions from
the county for his compensation and operating expenses based on the
approved budgets and budget amendments.
Tangible Personal Property
Acquisitions of tangible personal property were recorded as
expenditures in the General Fund at time of purchase. Items on the
individual property records were shown at original acquisition cost or
estimated value at time of acquisition. Depreciation was not recorded
or reported.
Retirement Plans
The former Sheriff and employees of his Office were members
of one of the retirement plans administered by the State of Florida,
Department of Administration, Division of Retirement. These plans
required contributions by the Office of the former Sheriff at stated
percentages of compensation dependent upon the individual plan.
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EXHIBIT - H
MONROE COUNTY
FORMER SHERIFF
NOTES TO FINANCIAL STATEMENTS
January 3, 1977
1 . Excess of revenues over expenditures for the fiscal year ended
September 30, 1974 , is shown in this report as the "Fund Balance,
Beginning (October 1 , 1974) " since Section 30 .50, Florida
Statutes, provides that the Sheriff shall refund to the Board of
County Commissioners all unexpended balances at the end of each
fiscal year and that he has 30 days after the end of the fiscal
year in which to voucher all expenses incurred. Since the
reversion of the budget balance to the county is payable within
30 days following the close of the fiscal year, such reversion is
reported within the next fiscal year .
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MONROE COUNTY EXHIBIT - I
FORMER SHERIFF
STATEMENT FROM AUDITED OFFICIAL
May 1 , 1975 to January 3, 1977
Audit
Report
Paragraph The former Sheriff's response to the audit findings is as
Number follows
(17) In regards to the question of property control ;
periodic inventories were being taken by someone
independent of the custodian as suggested before I
left office on January 3, 1977 .
(24) In regards to the question of accounts for fixed
assets ; control accounts were further established along
with general proceedures to ensure additional accuracy.
The above questions were also discussed verbally
with representatives of your office in Key West, Florida
when this audit report was completed.
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