The URL can be used to link to this page

Report No. 09536, District School Board 5n s 36 • STATE OF FLORID A OFFICE OF THE AUDITOR iaEPSTERAL • . 40:1. ,/ \(1 APPRO' 0 biJ ppGE. aoOK ' **.* MONROE *** COUNTY DISTRICT SCHOOL BOARD For the Fiscal Years Ended Ji ne 30, 1977 and June 30 , 1978 If, 9536 STATE OF FLORIDA OFFICE OF THE AUDITOR GENERAL Report on Audit of. the Accounts of the MONROE COUNTY DISTRICT SCHOOL BOARD For the Fiscal Years Ended June 30, 1977 and June 30, 1978 Dated: August 10, 1979 dTME�3° d l + STATE OF FLORIDA OFFICE OF THE AUDITOR GENERAL Tallahassee , Florida ERNEST ELLISON,C.P A. August 10, 1979 AUDITOR GENERA. g 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 DISTRICT SCHOOL BOARD For the Fiscal Years Ended June 30, 1977, and June 30, 1978, 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 fiscal years ended June 30, 1977, and June 30, 1978, 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. 1 Par . No . PERSONNEL (2) The personnel of the Board was as follows: District No . Joseph T. Thompson , Jr . , Chairman from 11-19-76 1 Enoch H. Walker , Chairman to 11-18-76 2 Carole D. Bolter to 11-20-76 3 Thomas S. Fouts from 1-13-77 3 Wilhelmina G . Harvey, Member and Vice-Chairwoman to 11-15-76 4 Roger L. Swift from 11-16-76, Vice-Chairman from 11-22-77 4 Ruth Alice Campbell, Vice-Chairwoman from 11-19-76 to 11-21-77 5 Armando J . Henriquez, Superintendent SCOPE AND OPINION ( 3) I have examined the financial statements of the various funds and account groups of the Monroe County District School Board for the fiscal years ended June 30, 1977, and June 10, 1978. 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 . (4) In my opinion , the accompanying financial statements present fairly the financial position of the various funds and account groups of the Monroe County District School Board at June 30, 1977, and June 30, 1978, and the results of its financial operations for the years then ended , in conformity with generally accepted accounting principles applied on a consistent basis . FINANCIAL MANAGEMENT Depositories (5) Funds received by the Board were deposited into local banks. My review of the reports of depository balances , reports required by , Section 136. 02, Florida Statutes , revealed actual bank balances sometimes exceeded, by large amounts, the highest estimated balances 2 Par . Nos reported to the Clerk of the Circuit Court. The details of my review were furnished to the Board' s Director of Finance. Efforts should be made to better estimate the subsequent month' s highest balance in order to obtain adequate collateral required by law for the protection of the Board's depository balances . Investments (6) In accordance with Section 230. 33(12) (j ) , Florida Statutes, school funds not needed for immediate expenditures were invested in interest-bearing time deposits . Bids were taken in order to secure maximum interest rates . Interest earned ranged from 4 .7 percent to 7 . 451 percent during 1976-77 and from 5. 375 percent to 6 .8 percent during 1977-78. Interest earned was computed and credited quarterly as required by Section 136. 04, Florida Statutes. A tabulation showing interest received during the audit period is as follows: Major Fund Group 1976-77 1977-78 Interest Income from Investments Made Locally: General Fund $ 31, 905. 81 $ 66, 457. 55 Special Revenue Funds 3, 282:37 1 ,810. 75 Debt Service Funds 43,480. 25 33, 348.63 Capital Projects Funds 53,443. 34 Interest Income from Investments of Board Funds Held by the State: Debt Service Funds 37,966. 81 40, 452. 44 Capital Projects Funds 3,464.86 3,977_85 Total $173, 543. 44 $146,047. 22 Fixed Assets (7) The acquisitions and disposals of tangible personal property made during the audit period generally complied with the provisons of Chapter 274, Florida Statutes . (8) Section 235.04 (1) , Florida Statutes , provides that , " . . . the board may dispose of any land or real property which is by resolution of such board determined to be unnecessary for educational purposes ." On May 11, 1976, the Board approved that approximately 0. 25 acres of Board-owned land located on Upper Matecumbe Key, Monroe County, be either leased or granted to the Monroe County Mosquito Control District since the Board had no use for the property for school purposes . Without any further Board action this land was deeded to the Mosquito Control District on March 14, 1977. 3 Par . No . (9) On October 26, 1977, the United States Government donated five buildings occupying 4 .82 acres of land to the Monroe County District School Board. The land and buildings , located at Trumbn Point Annex in the City of Key West , was surplus property formerly used by the United States Navy. (10) Pursuant to Board Resolution No. 590, dated March 25, 1975, the Board authorized as an acquisition by gift , a second-lien mortgage in the amount of $60, 000 on a parcel of land located on Plantation Key, Monroe County, Florida. On June 20 , 1977, in lieu of the $60,000, the Board was deeded the land. This parcel of land, located adjacent to the Plantation Key Elementary School , contains approximately 3 .84 acres . Long-Term Debt (11) The Board complied with the terms of the local bond resolution . All bond and interest maturities during the audit period were paid on a timely basis. Subsidiary records that record payments, bond and coupon cancellations , and amounts outstanding were well kept. (12) The State Board of Education bonds payable represent the Board 's portion of bonds sold through the Department of Education on behalf of specific community colleges and district school boards. 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 . (13) There were no new local or State Board of Education bonds issued during the audit period. Budgets (14) Budgets were prepared, approved, and timely submitted in accordance with applicable laws and State Board of Education Rules. Comparisons of estimated revenues and appropriations with actual revenues and expenditures are shown on exhibits B-2, C-2, D-2, and E-2. (15) Schools and other cost centers were responsible for keeping expenditures within their allocations of the total operating budget. Monthly budgetary reports showing budgeted amounts , the month' s expenditures , year-to-date expenditures , outstanding encumbrances, and unencumbered budget balances were prepared and distributed to all schools and other cost centers . As an additional budgetary control, the Superintendent required all schools and other cost centers to maintain records which provided current information on amounts remaining in their budgets . 4 Par . No . (16) Expenditures during the 1976-77 fiscal year for school administration and food services in the Special Revenue Funds exceeded the amount budgeted for such expenditures by $562. 57 and $17,711. 26 , respectively. Revenues (17 ) Revenues for the last two fiscal years as reported by the Board are summarized in the following tabulation: Sources 1976-77 1977-78 Amount Percent Amount Percent Federal: Received Direct $ 1,114, 538.75 6 . 58 $ 1,296,659. 24 7 .03 Received Through State 1 ,477, 218.96 8.71 1 ,688,287. 49 9 . 15 Total Federal $ 2, 591,757.71 15. 29 $ 2,984,946.73 16. 18 State 7 , 180,130.67 42. 36 7 ,474,910. 59 40. 51 Local 6,682, 105.63 39. 43 6 ,863, 374..78 37. 20 Nonrevenue 8, 556.71 .05 11, 891. 26 .06 Remittances from Other Districts and Agencies 485,893.80 2 .87 _ 1 ,116,034.64 _ 6.05 Total $16,948, 444. 52 100. 00 $18, 451, 158.00 100. 00 (18) The major sources of revenue from the Federal Government , including Federal money received through the State , were as follows: 1 . Federal Impact Funds totaled $1,073,783. 43 in 1976-77 and $1, 159,998. 02 in 1977-78. These funds were to provide assistance to local school districts due to loss of tax funds because of Federal installations located in their areas . 2. Contracted Program Funds totaling $800, 263. 42 in 1976-77 and $864, 014.60 in 1977-78 were received through the State for programs pursuant to various acts and laws . 3. Comprehensive Employment Training Act (CETA) funds received through the State totaled $22,791. 56 in 1976-77 and $160, 354. 24 in 1977-78. Amounts received were to assist in providing occupational training for the unemployed who cannot obtain appropriate full-time employment without training. 4. National School Lunch Act funds received through the State totaled $654, 163.98 in 1976-77 and $640, 880.65 in 1977-78 and were for the purpose of supplementing the school lunchroom program. 5 Par . No . (19) In addition to the Comprehensive Employment Training Act (CETA) funds discussed above, the Board also received CETA funds from the South Florida CETA Consortium through the Dade County Board of County Commissioners which totaled $475, 893. 80 in 1976-77 and $1,079, 237. 28 in 1977-78. (20) 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 Department of Education . The Department of Education accumulated information from these reports and calculated the allocations of FEFP funds. The Department of Education , after review and verification of the school principals' reports and supporting documentation , may during subsequent periods adjust the allocation of FEFP funds which were received during the audit period. (21) The revenue reported from local sources was primarily received from property taxes , interest earned on investments , and food service sales . Millages and taxes levied for school purposes on the 1975, 1976, and 1977 tax rolls are shown below: 1975 1976 1977 Mills Amount Mills Amount Mills Amount General Fund: Nonvoted School Tax 7.800 $5.794.092.17 7.80 $6.002,857.02 7.80 $6.226.326.90 Debt Service Funds: District No. 1 Bond Interest and Sinking Fund .495 367.702.00 Total 8.295 $6,161,794.17 7.80 $6,002,857.62 7.80 $6,226,326.30 Millages were within the amounts authorized by Section 236. 25 (1) , Florida Statutes . Salaries (22) Salary payments were adequately supported and made pursuant to adopted salary schedules. Contracts were issued to employees where required . Qualifications and job descriptions had been adopted by the Board for all positions of employment. (23) Leave taken was in compliance with the Board' s policies which had been adopted in accordance with applicable laws and State Board of Education Rules . (24) Deductions for retirement and social security were accurately made and promptly remitted together with the Board' s contributions . s Par . No . (25) Compensation for the Superintendent and Board members was paid in accordance with Chapter 145, Florida Statutes . (26) The Board retained an attorney and paid him an annual salary of $13,702 and $17, 300 for the fiscal years 1976-77 and 1977-78, respectively. The attorney participated in the Florida Retirement System with the Board paying the applicable retirement contribution and matching social security contribution as for any other regular employee. He participated in the Board' s hospitalization insurance plan and was also provided a $40,000 life insurance policy. In addition , the Board paid legal fees to this attorney' s law firm amounting to $507. 50 and $340 for the fiscal years 1976-77 and 1977-78, respectively. I also noted that $ 1, 195 and $2, 330. 20 in legal fees were paid during 1976-77 and 1977-78, respectively, to an attorney who was a member of the same law firm. No written contract or job description was on file and the Board's relationship with the attorney was not clear . If the Board's intent was that the attorney should be a regular full-time employee, then these payments for additional services may constitute a standard of conduct prohibited by Section 112. 313 (3) , Florida Statutes . If , however , it was the Board's intent that the attorney function as an independent contractor , then those payments for retirement, social security matching, and insurance appear to be an improper expenditure of public funds . I recommend that the Board examine its relationship with the attorney and clearly establish of record his employment status. (27) Section 295. 10, Florida Statutes , provides that in all positions where employment of persons is not subject to Career Service System or other merit-type systems, preference in appointment or employment shall be given by the State and its political subdivisions to veterans , or their spouses . Section 295. 11, Florida Statutes, provides that in each instance in which a veteran having the needed qualifications applied but was not hired, a report must be filed with the Division of Veterans' Affairs, Department of Community Affairs. As noted in audit report No . 9081, paragraph 18, records maintained by the Board were not sufficient to determine whether the Board complied with these provisions of law. The Superintendent , in his response dated September 16, 1977 (see page 45 of the prior audit report) , to this comment , stated that , "Monroe County has given preference to veterans and is in the process of setting up procedures to meet the requirements of the 1977 Florida Legislature." As of December 1978, questionnaires concerning veteran eligibility were attached to only some of the Board' s employment applications. These questionnaires should have been attached to all job applications . The questionnaires alone were not sufficient to enable me to determine compliance with the provisions of Sections 295. 10 and 295. 11, Florida Statutes. Although the questionnaires indicated eligibility for veterans preference , no other records were kept by the Board to show that eligible applicants were given preference in appointment or employment . 7 Par . No . Operating Expenditures (28) Except for the school food service operations , purchas^s were made through a centralized purchasing department. Purchasing procedures appeared to be adequate and included the use of requisitions , solicitation of bids and quotes, and issuance of purchase orders . (29) Purchases for the school food service operations were made by the School Food Service Department . Purchasing procedures included the solicitation of bids and quotes . Purchase orders were not issued for all purchases and those issued were not recorded in the accounting records as encumbrances (commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved) . ( 30) Bids were requested in accordance with State Board of Education Rule 6A-1. 12, Florida Administrative Code. (31) Expenditures reported by the Board were properly documented, correctly classified, and appeared to be in accordance with legal requirements . Tax exemptions were taken where applicable. (32) The Board received funds for several grants and projects funded from Federal and State sources . Subsidiary records and project files were generally adequate , and it appeared that funds were expended in accordance with the terms of the grants . ( 33) The Vocational-Technical-Adult Education Department made numerous purchases of domestic and foreign auto parts including spark plugs, cases of oil, oil filters , batteries , anti-freeze, repair kits , and other repair parts . These expenditures were paid by the General Fund and recorded as expenditures for adult-vocational education teaching supplies . Through discussions with Board personnel it was learned that these purchases of "teaching supplies" were actually repair parts that were installed on automobiles and small engines in the Board ' s automotive mechanic or small engine programs. Instructors were required to charge the owners of the automobiles and small engines the retail price for all parts purchased and used in effecting repairs . Monies derived from the sales of these parts were deposited in the internal funds at the schools having these programs. The Board should require the General Fund to be reimbursed by the internal funds for all repair parts purchased for resale. (34) Security deposits totaling $2, 400 ($300 each) for eight mobile classrooms were forfeited to the leasing company upon termination of the lease on October 1 , 1976. Upon my staff' s request for information concerning the forfeitures of the security deposits, the Director of Maintenance , Transportation , and Custodians stated in a memorandum dated.October 3 , 1978, that an inspection of the leased property was conducted by his department and it was determined that 8 Par . No . repairs to the mobile classrooms would cost more than the security deposits . The memorandum also stated that recommendations were made that the security deposits be forfeited in lieu of repairs and that the Superintendent concurred with the recommendation . The Board' s minutes did not indicate Board approval for this matter . (35) In accordance with Section 112. 3145, Florida Statutes , the Superintendent, Board Members , and the Director of Purchasing filed the required financial disclosure statements . The Assistant Superintendent , Director and Assistant Director of Finance, Director of School Food Service , Director of Maintenance , Transportation , and Custodians , Director of CETA Programs, Director/Business Management Complex Team Leader , Director of Federal Programs, principals , and various other Board employees had the authority to make purchases for the Board in excess of $ 100; however , records provided for audit did not indicate that these employees had filed the financial disclosure statements required by Section 112. 3145, Florida Statutes . (36) Audit report No . 9081, paragraph 20, noted that the Board member from district No . 5 was paid for travel between home and various locations in the Key West vicinity, based on the actual number of miles traveled and that reimbursement should have been made only for the shorter distance from the Board's Key West office to these locations . The Attorney General , in opinion No. '075-237, stated that . . travel should be calculated from the member 's residence , when travel originates there , if it is a shorter distance than from the official headquarters to the place where the official duties are to be carried out ." He also said that " . . . a member should be entitled to travel expenses when he travels directly from his home to a place other than the administrative headquarters to perform his official duties when there is no necessity to take a longer route by way of the administrative headquarters . . . (37) The Attorney General referred to opinion Nos . 064-21 and 074-132 wherein was stated the opinion that travelers were entitled to reimbursement for mileage in traveling on official business to a location other than the headquarters office either from home or from the headquarters office , whichever is shorter . The Superintendent, in his response dated September 16 , 1977 (see page 46 of the prior audit report) , to this comment, stated that "Upon notice from the Senior Auditor during the 1975-76 audit period , no other payments have been made ." However , travel payments made to the Board member from district No. 5 on September 29, 1977 ; December 10 , 1977; April 27, 1978; and August 10, 1978, on voucher Nos . 2349, 3302, 5454, and 7114, respectively, again included payments for travel between home (Marathon Shores , Marathon) and various locations in the Key West vicinity, based on the actual number of miles traveled. As noted earlier , reimbursement should have been made only for the shorter distance from the Board' s office to these locations. The Board should take appropriate action to determine and collect the amounts overpaid. 9 Par . No . ( 38) Included in a travel expense payment to the Board member from district No. S (voucher No. 1319, dated August 27, 1976) was a reimbursement for 100 miles traveled, at a rate of 14 cents per mile, for travel to a democratic rally in Key Largo at 8 :00 P.M. , July 10, 1976. In opinion No. 077-8, the Attorney General specifically concluded that " . . pursuant to Florida law public funds may not be expended by a county or district or other statutory entity for lobbying purposes unless expressly and specifically authorized by statute He also concluded in opinion Nos . 072-320 and 065-106 that a school board may not expend public funds to obtain favorable electorate support or to gain support for the policies or actions of the board . ( 39 ) Voucher No. 3050, dated November 27, 1977, shows that the Board paid Island City Flying Service , Inc . , $40 for a chartered airplane flight for the Board attorney to travel from Key West to Marathon on November 9 , 1977. Section 112.061 (7) (a) , Florida Statutes , requires travel by the most economical method. The cost of air travel on a scheduled airline or the payment for mileage at the rate of 14 cents per mile , the maximum allowed under the provision of Section 112. 061 (7) (d) , Florida Statutes , would have been less than the cost of the chartered airplane flight. (40) During the audit period the Board paid the Superintendent and certain employees monthly travel allowances for the use of privately-owned automobiles on official business . These payments were usually made on the basis of the travelers' signed statements showing the typical month' s travel which were filed on an annual basis prior to the allowances being granted; however , it was noted that two employees received monthly allowances from August 1977 to June 1978, although their typical month' s travel statements were not filed until August 1978. Section 112.061 (7) (f) , Florida Statutes , requires that the statement be filed before the allowance is granted or charged. (41) Signed statements on file showing the typical month' s travel for five employees did not show enough miles to support the monthly travel allowance paid to them had they been reimbursed for travel at a rate of 14 cents per mile , the maximum allowed under the provisions of Section 112. 061 (7) (d) , Florida Statutes . An analysis of these payments follows: Employee's Job Title Months Miles Per Mileage at Amount Amount in Traveler's 14 Cents Paid Excess, Statement Per Mile (1) Per Month Social worker September 1977/June 1978 246 $34.44 $ 47.00 $12.56 Social Worker September 1977/June 1978 175 24.50 43.00 18.50 Diagnostic Prescriptive writer September 1977/June 1978 206 28.84 30.00 1.16 Social Worker September 1977/June 1978 102 14.2E 43.00 28.72 Coordinating Teacher September 1977/April 1978 462 64.68 112.00 47.32 Note: (1) One-half the regular monthly allowances were paid for the months of December 1977 and June 1978. 10 Par . No . (42) Three employees receiving monthly travel allowances were required by their immediate supervisor to submit signed statements showing actual miles traveled each month . In most cases the actual mileage was considerably less than the mileage upon which their monthly travel allowances had been based. Since these employees submitted signed statements of actual mileage each month the monthly payments should have been based on actual miles traveled rather than the monthly allowance , which resulted in payments for more than actual miles traveled . (43) On two occasions the Board paid the cost for an airplane rented by an employee for in-county travel. William L . Osterhoudt, Principal of May Sands School/Director of Exceptional Child Education, rented an airplane to travel from Key West to Marathon and then Key Largo on June 8 , 1977, and from Key West to Key Largo on November 16, 1977. The Board paid the cost of these rentals on voucher Nos . 1071 and 3664 dated July 27 , 1977, and December 27, 1977, respectively. The cost of these rentals was $ 45. 60 for the June 8 , 1977, trip and $ 39.60 for the November 16, 1977, trip. The rental of these airplanes should have been paid for personally by the employee since he was already receiving a $93. 80 monthly travel allowance for in-county travel. (44) The Board's insurance coverage during the audit period appeared adequate and in compliance with applicable laws and Rules of the State Board of Education . Workmen' s compensation coverage was provided on a self-insurance basis with a purchased specific and aggregate workmen' s compensation insurance policy to provide additional coverage for any excessively large claims. Capital Outlay (45) The files maintained for the Board' s capital projects were generally complete and well maintained . Payments to architects and contractors were properly supported and made in accordance with terms of contracts. Changes to original construction contracts were approved by the Department of Education . (46) State Board of Education Rule 6A-2. 24 (1) , Florida Administrative Code , requires that all new construction for which plans were approved by the Office of Educational Facilities Construction shall be inspected by a representative of that office prior to student occupancy. The Board received certificates of final inspection for all projects completed during the audit period. These projects were as follows: 11 Par . No . Project Estimated Actual Cost Per Costs Costs (1) Square Foot Plantation Key Elementary $1, 880,000. 00 $1,704, 063. 75 $34. 10 Gerald Adams Elementary 1 ,860, 000.00 1 ,686, 000. 00 33. 23 Key Largo Elementary Cafetorium 300,000. 00 400, 000.00 59.79 Key West High School Vo-Tech Addition 525, 000. 00 595,000.00 32. 78 Note : ( 1) Includes costs of contractors only. (47) Although requested during the course of this audit and also for the prior audit as discussed in audit report No . 9081, paragraph 38, a certificate of final inspection for the May Sands addition which has been completed and in use since the 1975-76 school year was still not presented for my audit verification . (48) The Board hired architectual firms to plan construction and modification of the Board's school plants . Firms providing these services were selected by the Board as required by the Consultants' Competitive Negotiation Act , Section 287. 055, Florida Statutes , and State Board of Education Rule 6A-2.04, Florida Administrative Code . REPORTS , RECORDS, AND INTERNAL CONTROL Financial Reports (49) 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 reports for the fiscal years 1976-77 and 1977-78 were filed with the Commissioner of Education. Minutes ( 50) In accordance with the provisions of Sections. 230. 23 ( 1) and 286. 011, Florida Statutes , the minutes of the Board were signed, indexed, and appeared to include all the official actions of the Board. The minutes were kept in permanently bound books located in a vault at the Board' s headquarters in Key West and were available for public inspection . 12 Par . No . Accounting Controls (51) My staff reviewed and tested the Board's system of internal accounting control to the extent considered necessary to evaluate the system as required by generally accepted auditing standards . Objectives of a system of internal accounting control are to provide reasonable assurance as to the safeguarding of assets against loss from unauthorized use or disposition , the reliability of financial records for preparing financial statements , and maintaining accountability for assets . (52) My examination was not for the sole purpose of expressing an opinion on internal control , and it would not necessarily disclose all weaknesses in the system. The following paragraphs and other paragraphs under various subheadings in this report include discussions of significant weaknesses noted, as well as my audit findings regarding compliance with laws , rules, regulations, and other external guidelines . (53) Warrants used for the disbursement of some Board funds were not prenumbered by the printer . Controls over disbursements would be enhanced by the use of prenumbered warrants for all disbursments . (54) Entries recording financial transactions in the Board' s accounting system were adequately supported; however , many entries were not signed as approved by the administrator in charge. (55) Prenumbered receipts were issued for the collection of fees for adult education courses and for the sale of books; however , the Board did not make a proper accounting of these receipts . Although a record was kept by the Board's finance office of prenumbered receipts purchased and assigned to the Vocational-Technical-Adult Education Department , a reconciliation was not made between the amounts collected and the receipts returned as issued and voided. (56) Contrary to State Board of Education Rule 6A-6. 14 (3) , Florida Administrative Code , the Board did not approve the fee amounts charged for the adult education classes . (57) State Board of Education Rule 6A-1.69 (3) , Florida Administrative Code , requires that all filing equipment for personnel records shall have a locking device and shall bear a certified fire protection label . As noted in audit reports No . 7581, page 8 ; No. 8612, paragraph 35; No . 8836, paragraph 21 ; and No . 9081, paragraph 15, some of the Board's personnel records were not protected as required. The Superintendent, in his response dated September 16, 1977, to a similar comment in the prior audit , stated that " . there are seven filing cabinets in the Personnel Department that are not fireproof .. Due to the construction and condition of the second floor of the Administration Building, the floor will not support the weight load of additional fireproof cabinets . All personnel records are in the process of being microfilmed. When this is completed, 13 Par . No . there will be adequate space for all records to be placed in fire protected files . The Personnel Office will be moved to a new Administration Building in the Summer of 1978, at which time it will be located on the first floor and adequate provision will be meta for the proper storage of personnel records ." As of January 1979, some personnel records were still not stored in fireproof cabinets. (58) Some improvements were needed in the accounting controls and procedures over cash receipts for meal sales . Prenumbered receipts or tickets were not issued for prepaid collections . Cash registers or prenumbered receipts were not used at three schools for lunchroom collections . At one school only an adding machine was used to record collections . The cash registers in use at some schools did not provide adequate control features . I noted that consecutive transaction numbers and dates were not printed on the tapes . In addition , these machines were not properly locked and could be cleared and reset by unauthorized personnel . For adequate control, I recommend that all collections be recorded either by means of cash registers having proper control features or manually by the use of prenumbered receipt forms. In regard to a similar recommendation in the prior audit , the Superintendent in his response dated September 16, 1977 (see audit report No . 9081, page 46) , stated that "Funds have been budgeted for the purchase of cash registers for each school needing them. Specifications are currently being written and bids will be called upon their completion . The cash registers will be put into use immediately upon delivery to us from the successful bidder ." Although some new machines were purchased and placed into use, additional machines were still needed as evidenced by the results of my audit tests . (59) Improvements were needed regarding the records kept at the schools to support reimbursement claims submitted to the Federal and State Governments for free and reduced price meals. These claims were based on reports received from the schools that disclosed the number of free and reduced price meals served. At some schools a meal card for each qualifying student was prepared and maintained to provide the support for the figure appearing on the reports . Other schools kept a roster of students qualifying and receiving free and reduced price meals . Audit test performed during the course of this audit disclosed some deficiencies . At one school there were 110 students receiving free or reduced price meals, although there were only 100 applications on file. At other schools some students receiving free and reduced price meals did not have applications on file. Some students received free meals although the applications indicated approval for only a reduced price meal. It was also noted that three students reported as receiving a free or reduced meal on the date tested were shown as absent on the attendance records. 14 Par . No . (60) The school cafeterias were not provided with change funds to aid in the collections of meal sales. At the beginning of zach school year , three schools would hold between $15 and $100 out of the first day' s receipts for use as a change fund. This money would then be deposited on the last day of the school year . Change funds at other schools were either private funds or money donated by the PTA. The Board should provide each cafeteria with an adequate change fund. (61) During the course of this audit it was noted that school cafeteria workers , some custodians , a principal, a teacher , a school bookkeeper , and a school food service truck driver received free lunches . Policies and salary schedules adopted by the Board made no provisions for providing employees with free lunches. (62) Tangible personal property is governed by the provisions of Chapter 274, Florida Statutes , and the rules issued pursuant thereto. The results of my audit tests , as discussed in some of the following paragraphs , indicated that improvements were needed in the records, procedures , and controls surrounding the Board's tangible personal property. (63) A physical observation test of property items selected at random from the Board's records of tangible personal property disclosed some items that could not be located by the Board's personnel. These items were as follows: Description Property Original Number Cost or Value Amplifier (Stereo) 36360 $ 399. 00 Cabinet , Storage 90713 110. 50 Dictaphone 33659 245.00 Piano, Wurlitzer 6274 475.00 Projector , Opaque (Vulyte) 7784 150.00 Rack (Basket) 39276 110.73 Vacuum (Wet-Dry) 36725 263. 86 (64) Board employees stated that the Wurlitzer piano noted above was disposed of and buried at the site of Marathon High School' s new basketball and tennis courts . There was no record of Board approval for the disposal of this piano. (65) An additional random selection of 75 items was made from the listing of 183 property items located at the Board' s Vocational- Technical Building , B-18. The items selected which could not be located by the Board' s personnel for the auditor' s observation were as follows: 15 Par . No . Description Property Original Number Cost or Value Air Wrench - 3/8-inch Midget 32853 $154. 50 Brazing Outfit - Airline 34257 118.00 Cleaner , Super Powered 34198 740.00 Cutting Outfits 34254 118. 32 Cutting Outfits 34255 118. 32 Demo Motor 38117 100. 00 Demo Motor 91184 100. 00 Grinder , 5-inch 34187 116.50 Hoist 90889 100.00 Jack, 3000-lb. Capacity 31576 160.00 Jack, 2-Ton Service 32846 199. 10 Jack, 2-Ton Service 32847 199. 10 Jack, 4-Ton Service 34195 225. 50 Jack, 750-lb. 34875 141. 40 Jack, 750-lb. 34876 141. 40 Jack, Hydraulic 38128 170. 10 Outfit , Oxacet - Little Big 37636 141.00 Projector , Slide - Carousel 39919 180. 50 Shear , Electric Metal Cut 34608 105. 00 Steam Cleaner 60533 594.00 Welder , Little Big 37641 141.00 (66) During observations of tangible personal property items at the Vocational-Technical facilities members of my staff noted that numerous items appeared to have a value of over $ 100 and did not have markings identifying the property as owned by the District School Board. Board personnel stated that items not marked are only placed on the property records if Board ownership can be determined. A Board employee also stated that most of the unmarked items in the Vocational-Technical facilities were surplus United States Navy property and that often , records showing acquisitions of surplus Navy property did not specifically identify the items received. To provide proper control over these items, I recommend that the Board mark the items in the manner provided by law and include them on the property records . If it should later be determined that some items are not actually owned by the Board, then such items could be removed from the property records and returned after proof of ownership is determined.(67) Many items of tangible personal property selected for physical observation were found at locations different from those shown on the property records. Property items that were not located during the Board' s annual- physical inventories were not removed from the property records on a timely basis. One carousel slide projector , property No . 33007, had been reported stolen on August 3 , 1970, and was still carried in the Board's property records as of June 30, 1978. 16 Par . No . Administrative Controls (68) The Board should adopt policies governing the repair of privately-owned automobiles and small engines by the Vocational- Technical-Adult Education classes . Such policies should provide for charges for fees and cost of repair parts. See comments regarding the sale of repair parts under the FINANCIAL MANAGEMENT, Operating Expenditures subheading. (69) Provisions should be made in the Board' s policies as to the use of and charges for school buses on school activity trips. Internal Funds (70) The Board is responsible for the administration and control of all local school funds derived from school activities under the provisions of Section 237. 02 (4) , Florida Statutes , and State Board of Education Rule 6A-1.87, Florida Administrative Code . Policies and procedures for the administration and control of internal funds have been adopted by the Board and included in the Board' s policy handbook. (71) The Board contracted with a local certified public accountant to provide annual audits of internal funds as required by State Board of Education Rule 6A-1. 87 (2) , Florida Administrative Code. No deficiencies were noted in the report for 1976-77 which was accepted by the Board on January 12, 1978. The annual audit for 1977-78 had not been completed as of January 3 , 1979. Audits of these funds were not included in the scope of my examination. STATEMENT FROM AUDITED OFFICIAL (72) In accordance with the provisions of Section 11. 45 (6) (d) , Florida Statutes , a list of audit findings was submitted to the Board. The Superintendent' s response to the audit findings included in this report is shown on exhibit J of the 1977-78 financial statements . 17 EXHIBITS The exhibits attached to this report for the fiscal years ended June 30, 1977, and June 30 , 1978, are listed in front of tue statements for each period . They form an integral part of this report . Respectfully submitted, (Signed) Ernest Ellison , C.P.A. Auditor General Audit supervised by: (Signed) Willard G. Hale Audit made by: (Signed) James A. Bell 18 EXHIBITS The following exhibits for the fiscal year ended June 30, 1977, are attached to and form a part of this report: Combined Section EXHIBIT - A Combined Balance Sheet - All Funds. General Fund EXHIBIT B-1 Balance Sheet. EXHIBIT B-2 Statement of Revenues , Expenditures , and Transfers . EXHIBIT B-3 Statement of Changes in Fund Balance . Sgecial Revenue Funds EXHIBIT C-1 Balance Sheet . EXHIBIT C-2 Statement of Revenues , Expenditures , and Transfers. EXHIBIT C-3 Statement of Changes in Fund Balance . Debt Service Funds EXHIBIT D-1 Balance Sheet . EXHIBIT D-2 Statement of Revenues, Receipts, Expenditures , and Transfers . EXHIBIT D-3 Statement of Changes in Fund Balances. Capital Projects Funds EXHIBIT E-1 Balance Sheet . EXHIBIT E-2 Statement of Revenues, Expenditures , and Transfers. EXHIBIT E-3 Statement of Changes in Fund Balances . 19 General Fixed Assets EXHIBIT - F Statement of General Fixed Assets. General Long-Term Debt EXHIBIT - G Statement of General Long-Term Debt. Other EXHIBIT - H Summary of Significant Accounting Policies. EXHIBIT - I Notes to Financial Statements . 20 c -- 0.8 0 I‘TY-17 2 41 0' I , 0 0 8 2-1,,,I II IIIII ° " ° 0 0 0 A C.1 ° C"0 Al 0 . . 0 01 0 0 cr. 'C :'-' :ll II — !r‘...1. ON 0 0" XIN. 014 41 E.,- X. 0 o r."..°1-1 :L‘1 1111 1110 I - CCH! 0 53 0 IX ON AIN1 0 VI 2 8 ; ..., Jillr ° I!" 30 P.. .-. .-.1 ..4 ;.i o I o H 1-- 41 111 ° X 0°5 0 C 41 Al 0 0 A 15Z Al O 41 01 XI g .rX1 cy: . :1 ''CI 111/111 IIIII .r; Cl .-I 011 0 10 0 0 01° ON 0° 49 z 5 , 6",;II co .-, on N ba .:1" ° g 0 '11 r5 " .-! e° g 0 0 0 0 4) ki p... oz.di co 0,a,.-. d ox 8 4 ''''8' 0 . - 0" 0° -."'" " 0; 8 E8 08 0 0 . = 0.. , 0 a, n ir n al 7 m"r-c...o'n a,`n eq° 'D "" ° "n" o et].. ."-'.. g n"rc,1 T. CO 0 04 0:0'8 N: 10. CV .A • CIN l•-• ,C) - COO NCD 1:2‘0"N "9 ‘0°' ••i• ° 8 2 .4%, to 4.0 0. -. c.1 c,c c il;cr9]n<8-.I en": oc° i c r L r 1 o c o r.. c c NI CO . . _ m 4. _ m 000 m 1.1 .551° 00 0 0 o 0 o a c c c 1.c !--d:c .-i e n c ..1 c+ ...,‹-i . _4-1 7c1 7+1 ,_.. ,4. ._ic,i ._i c 4 cc,,i m cn 1^ ^ "I .-. .-4 ,,, .-t .-4 C . cji. ' a e ..-1 a) A OW .0E° 0 fr 1:i A 41N 4 j.}1'SW SCO> .-,-10 .J".in . a" x'u PW -1 1 0 < 0 55 1 4 g A 0 4. A 0 1 r n1 0 559 g1 4" i El -II . 111 14 < 01 OM li <Cri 0 4 4< gi 0 X ..1 r t.3 0 a) .1 0 .CC,P• J-0 i .'4 kju 111 1'4 w'';5 w ,c..-IC 1,gr I s ii 5. . ,01 01 41 a 1 01 41 0 0 E 5 41 A 10 0 01 CI C 4 10 1. A 0 X t g AN 0 11 <.-11, 01° (0 El I-• 4 ;-. 1.1 01 14 A A 5., 11 A u 0 0 04' 0 0 0 0 0 0 0 .-10.0..rtr 00 0t4 10) 0 . ... ii>.-.1 2, 0 .. 0 09 ,0' 0000 . 0 4 “ ” 011111 , 11510. 0. 000E0 0 X U 000 > > AOC 5010 0004 A LO ._,01(01 1 I CCU 1 1 A . 41 1-, 15A 15 A 0 CO 21 a.. II o w FI o0 II c0 cN ni r(zil Cr 0 0 CC P Os P co a co an z - a 2 ! I : i� er ko - m - H - -- ma aa< 0 m v . r a x O.0 CO E m ul C. o y C A W aV a N u L c� a H M 9 .] > E O P. < 4 O Y 6 7 L -4' O G 0n La n 0 Sn2 DISTRICT SCHOOL BOARD EXHIBIT 8-I OF MONROE COUNTY :IENERAI FLND BALANCE SBERT JUNE 30, ]977 AS4:*5 Cash 1110 2,168,591.21 Taxes Receivable 1120 125,762.88 Aecounts Receivable 1130 8,285.52 Tme Brom Ocier Funds: aue from Budgetary funds 1141 628,111.32 Due from Internal Funds 1142 9,093.07 Inventory 1150 251,094.77 Investments 116D Other Current Assets: Deposits Receivable 1210 Due from Other Agencies 1220 28.20 TOTAL ASSETS 3,190,966.97 LTAMILITIES, RESERVES, AND FUND BALANCE _.--TLIT1'S: Salaries and Wages Payable 2110 Accunts Payable 2120 116,629.25 Consotruction Contracts Payable 2140 Le to Other Funds: Due to Budgetary Funds 2161 Due to Internal Funds 2162 Payroll Deductions 6 Withholdings 2170 ' 137.81 Other Curren: Liabilities: Deposits Payable 2220 Due to Other Agencies 2234 Total Liabilities 116,767.06 "LSIR.ES: Reserve for Insurance Loss Recoveries 2640 9.216.67 Total Reserves _ 9 216 67 _. 3ALA:CE: Reserve for Encumbrances 2610 352.817.80 ::appropriated Fund Balance 2710 2,712,165.44 Total Fund Balance 3.064.983.24 ICAL LIABILITIES, RESERVES, AND FUND BALANCE 3,190,966.97 aBfferve for Encumbrances includes encumbrancesr fo Te*jtal Ou tlay (Objects 600 and B001of 5 123.152.26 Sef accompanying summary of significant accounting policies and notes to financial statements. 23 EXHIBIT B-2 DISTRICT SCHOOL BOARD OF MONROE COUNTY GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1911 OVER FINAL ACTUAL (UNDER) BUDGET REVENUES BUDGET 1 U. DIRECT: • -artnent of HEW: T43eral Impact, Current Operation 121 998 347.00 1.073.783.43 75,436.43 OS r Federal Direct: 191 :n:o-Chinese Refugee Program 192 Key Deer Refuge Receipts 20.000.00 40,755.32 20,755.32 Dotal Federal Direct 1,018,347.00 1.114.538.75 96,191.75 FED'"" 1 THROUGH STATE: , Title III 211 S:vprehensive Employment Training Act 220 nal Forest Funds 255 CF.r Federal Through State 290 :.ra" Federal Through State SOURCES: :side Education Finance Program 310 5 407 nil nn 5 s91 oq4 nn 98 5163 DD --an aporcat ion 314 314.396.00 299.110.00 (15.286.00) -unity Instructional Services 315 27,268.20 27.269.00 .80 GC DS t:ithheld for Administrative Exp. 323 4,888.83 4,888.83 C_.agorical State Sources: prehensive Health Education 331 11,881.62 11,882.00 .38 Safe Schools Act 332 Community Schools Program 334 54,000.00 54,000.00 --xceptional Child Support Services 335 Instructional Materials 336 71,839.00 74,239.00 2,400.00 Student Development Services 351 92,698.00 92,016.00 (682.00) Severely 6 Profoundly Retarded 352 mental Education 353 15,900.00 15,900.00 'aisually Handicapped Resources 355 legnostic 6 Resource Centers 356 ar State: :acing Commission Funds 341 90 000 00 93.250.00 3 250 00 State Forest Funds 342 F.:4:e License Tax 343 90.000.00 90.000.00 *other - 345: 346; 347 _ 13,650.00 14.835.00 1,185.00 anal State Sources 6,283,552.65 6,300,483.83 16.931.18 LOC_ SOURCES: -rice School Taxes 411 5.702.715.00 5.786.402.91 83.687.91 :• : Redemptions 421 83.696.73 83,696.73 • rent in Lieu of Taxes 422 6,978.48 6,978.48 ::-.Less Fees 423 2,631.I3 2,631.73 'Ration 424 2,000.00 2,420.00 420.00 --_-- 425 1,000.00 1,200.00 200.00 lerest, Including Profit on --vestments 430 9.399,00 31.905.81 22.506.81 • s, Grants, and Bequests 440 10,952.70 10.952.70 • allaneous Local Sources: —eipt of Federal Indirect Post Rate 494 18,500.95 18,500.95 Other Local Sources 40,000.00 72,219.60 32,219.60 _ al Inca] Sources 5,755,114.00 8,016,908.91 281,794.91 E dE5 13,057,013.85 13,431,931.49 374,917.84 * 345 - Poetry in the schools 346 - Architect in the schools 347 - Consumer/Economic Pdu. 24 DISTRICT SCHOOL BOARD EXHIBIT 0-2 OF MNNRnr COUNTY (Continued) GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES. AND TRANSFERS FOR THE YEAR ENDING JUKE 30, 1977 OVER FINAL ACTUAL (UNDER) BUDGET REVENUES BUDGET REMITTANCES FROM OTHERS: Remittances for Transportation 510 Remittances from Other Agencies 520 Reecitta.ees from Internal Funds 530 Total Remittances from Others INCOMING TRANSFERS: From Debt Service Funds 620 From Capital Projects Funds 630 From Special Revenue Funds 640 168.000.OQ 168 000.00 Int erfund 650 Total Incoming Transfers 168,000.00 168,000.00 NON-REVENUE SOI RCES: 8,388.90 8,388.90 Salmi of Fixed Assets 730 Insurance Loss Recoveries 740 162.86 162.86 Total Non-Revenue Sources 8.551.76 8 551.76 TOTAL REVENUES, REMITTANCES, TRANSFERS, AND NON-REVENUE RECEIPTS 13,225,013.65 13,608,483.25 383 469.60 25 F F+G; 1 I I II,r .i -M 'L ,I' I 1 I[ la o ' ^I -F h, U HIr � l l a�I . I 1-.aAr,mC rono�a m; 11 ; I7 aH In 11 . r2'o mllm lm n 2211 € E $�Co nEEMI gig C Iry n $ TSPP g o4 <N— m P aamm r m ,11 r 22 W � � so macc4 K a .. ' Axo o ,a0xa� 2 Y z z � .. LL� W�� v ° i rp xa 9 ° mr-.9 oliml_I Ia cc z d_ °i e I ; a9 'di a a � k}o Fo € G £ id 0" 1 m — _ vIN rlao {1 ' g z 3 -vY aB � �N NImIIC �''!i-.' o" Y c W 2 1" i 'H r �4 'ry 'a 1^ W ., . �I .. w `o " $ i o„^I�3'„io r-lamm)m I.In it tig'4121Ptc7:124r7c. l 2 > ,�� xI 1 lIvi m - 9n . 1gs � 1I 'LE ^ WII 1 L mJa - qq _ %11 ix 5' Ic !NI' IP rn '�n� h 8 N1 � '�I T ..{ Gp 1yft $ F. fi AllfiAAoAi A9_ Er = E w A5{5 �^ I nv a 7G I d 6 - 2 1.1 , t 1 j2 ; �II 'I �I _I rs L— iu13 _ ,__ I . 26 DISTRICT SCHOOL BOARD EXHIBIT B-3 OF MONROE COUNTY GENERAL FUND STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEAR ENDING JUNE 30, 1977 FUND BALANCE*, July 1, 1976 2700 1 2,813,743.77 Add: Excess of Revenue and Transfers over Expenditures and Transfers 2 405,329.21 Adjustments to Increase Fund Balance 3 8,687.77 Total Additions 4 414.016.98 Total Balance and Additions 5 3,227,760.75 Deduct: Deficiency of Revenues and Transfers over Expenditures and Transfers 6 Adjustments to Decrease Fund Balance 7 162,777.51 Total Deductions 8 162.777.51 FUND BALANCE*, June 30, 1977 2700 9 _ 3,064,983.24 '_nd Balance includes Reserve for Encumbrances See accompanying summary of significant accounting policies and notes to financial statements. 27 EXHIBIT C-1 DISTRICT SCHOOL BOARD OF MONROE COUNTY SPECIAL REVENUE FUNDS BALANCE SHEET JUNE 30, 1977 ASSETS Cash 1110 602,508.95 Accounts Receivable 1130 323,183.46 Due from Other Funds: Due from Budgetary Funds 1141 Due from Internal Funds 1142 Inventory 1150 111,928.86 Investments 1160 IDEAL ASSETS 1,037,621.27 LIABILITIES, RESERVES, AND FUND BALANCE LIABILITIES: Salaries and Wages Payable 2110 Accounts Payable 2120 9 UBg 29 Construction Contracts Payable 2140 48,498.00 Due to Budgetary Funds 2161 578,111.32 Payroll Deductions and Withholdings 2170 Due to Other Agencies 2230 96,639.64 Total Liabilities 732,357.25 RESERVES: Reserves for Insurance Loss Recoveries 2640 Total Reserves FUND BALANCE: Reserve for Encumbrances 2610 Unappropriated Fund Balance 2710 305 264 02 Total Fund Balance 305,264.02 TOTAL LIABILITIES, RESERVES, AND FUND BALANCE 1,037,621.27 ANALYSIS OF FUND BALANCL Food Service Other Special Revenue Reserve for Encumbrances Unappropriated Fund Balance 257,294.82 47,969.20 Total 257,294.82 47,969.20 See accompanying summary of significant account policies and notes to financial statement. 28 DISTRICT SCHOOL BOARD EXHIBIT C-2 OF MONROE COUNTY SPECIAL REVENUE FUNDS STATEMENT OF REVENUES, EXPENDITURES AND TRANSFERS 1'OR THE YEAR ENDING JOKE 30, 1977 OVER FINAL ACTUAL (UNDER) BUDGET REVENUES BUDGET REVENUES FEDERAL DIRECT: Head Start 130 Civil Rights Act, Title IV 140 Emergency School Assistance Act(ESAA)161 Comprehensive Employment Training Act (CETA) 170 Community Action Programs 180 — R.O.T.C. 191 Other Misc. Federal Direct 199 Total Federal Direct — FEDERAL 'THROCGII STATE: Vocational Education Acts 201 384.179,50 240 664.93 (143,514.57) S.D.E.A. 210 Comprehensive Employment Training Act (CETA) 220 154,000.00 22,791.56 (131,208.44) Elementary Secondary Education Act (ESEA) 240' 553,493.00 470,996.81 (82,496.19) Adult Basic Education 251 13,654.00 1.1,378.00 (2,276.00) Higher Education Act (EPDA) 252 Vocational Rehabilitation 253 National School Lunch Act 260 510,000.00 654,163.98 144,163.98 Other Federal Through State 290 Exceptional 111,206.00 //,213.68 (J3,982.32) Total Federal Through State 1 726 512.50 1.477 218.96 (249.313.54) STATE SOURCES: Food Service supplement 338 30,000.00 50,678.00 20,678.00 Total State Sources 30.000.00 50,678.00 20,678.00 LOCAL SOURCES: Interest, Including Profit on Investments 430 3.282.37 3,282.37 Grants, Gifts, and Bequests 440 Food Services 450 564.500.00 559,704.87 (4,795.13) Miscellaneous Local Sources 490 _ Total Local Sources 564,500.00 562,987.24 (1,512.76) TOTAL REVENUES 2,321,032.50 2,090,884.20 (230,148.30) REMITTANCES FROM OTHERS 500 794,723.00 485,893.80 (308,829.20) INCOMING 'TRANSFERS 600 619,274.41 619,274.41 TOTAL REVENUES, REMITTANCES, AND TRANSFERS 3,735,029.91 3,196,052.41 (538,977.50) 29 O - 'CN -- IO2 mr�o oDM sxu w— o NN O 0 �� oqq �aN0 01 o _o 1 ' a eN _ a�y t' �' ' ' — a vN� 14. eu- _ c co — . o N - i ' a-8o OO BOO aamT • 4 , , � , , N . 3 Y880- ta OOOOV• O r as. !tie -pCz zn_ Z o ' _ u a of :cs.djt:Ec2c O x . .. z 2 e0 u 0.-,-°-cil°I °I P4(c.:i ),' i a : ci a c! `In-:'c?51 O a u a z ° . , 8 Way � k ua �o _ v n z 8 z W M a) i. I • oj 2 9 j i i , i . r `o u p L W G o _ -= o ��OO o < o i z � `• £ Wos v , , , oa c ° N W — mw P. F 288 8c 0S.sc. y�. Nj0 . or c v 2 4 P a - ^o si C40 16 E '^ N I CC v , ' = � 8 = 8.1 8 ; 8 .8 8 ,8 ; 8 8 8 3 8 ,. a u O P I o E E YZ j a1 1 g my col i IIF as, tz it Fla - w.l .En ` 5 E ,Z o N ¢ 1c o y 8881 p ElJ iVc v 30 DISTRICT SCHOOL BOARD EXHIBIT C-3 OF MONROE COUNTY SPECIAL REVENUE PUNDS STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEAR ENDING JUNE 30, 1977 FOND BAi ANCE*, July 1, 1976 2700 1 29,507.21 Add: Excess of Revenue and Transfers over Expenditures and Transfers 2 160,492.22 Adjustments to Increase Fund Balance 3 154,725.33 Total Additions 4 315,217.55 Total Balance and Additions 5 344,724.76 Deduct: Deficiency of Revenues and Transfers over Expenditures and Transfers 6 Adjustments to Decrease Fund Balance 7 39,460.74 Total Deductions 8 39,460.74 FUND BALANCE*, June 30, 1977 2700 9 305,264.02 *Fund Balance includes Reserve for Encumbrances See accompanying summary of significant accounting policies and notes to financial statements. 31 El 0 01 0 Na P u y NL o 0 0 0 o n H . o .. oN .. o o x.. o m > m o oz H > S5 C 9 0 m g '' rci'� 0 00 o� z wm0 gg mu _ o w 2a s o oo w w 0 0 0 Vw V u •o e e e 0 N a v e a 41 n 2 u0 0 0' P 0 0 0 mm 3 ri 3 3 o 0 ffi o 0 e n0 0 0 n H a 0 o w � m wa94 04 w '4 - a g g a d 20 0 P. w F-i al ] W ] C R 4 ¢ V � ? G 0 �� 9x �� 32 D]SIUUIC9' SCIIt10L ull(dili OF MONROE COHN'T DEBT SERVICE FUNDS S1ATEM4:N'I' l]P REVENUE, RR4:ll'I'$, FXI'ENDTTIIRI:e, AND TRANSFFItS FOR 9AF YEAS EN'PTi^IO 11!N➢ 30, I'+7/ OV[R FINAL ACTUAL (UNDER) BUDGET BUDGET STATE BOARD OF EDUCATION/ CO➢I BONDS Fund 010 REVENUES: CORDS Withheld for SEE Bonds 322 230,005.78 _ 230,005,78 - 0 - Cost of Issuing SEE Bonds 324 _ SEE Bond Interest 326 37,966.81 377 96966.81 - 0 - Sale of Bonds 710 Total Revenues 267,972.59 267,972.59 EXPENDITURES: Redemption of Principal 9271 105,000.00 105,000.00 Interest 9272 163,642.5D 163,643.5 C Dues and Fees 9273 958.1r 958.19 Other Expenses 9279 Total Expenditures 269,600.69 269,600.69 Excess (Deficiency) of Revenue over Expenditures (1.628.10) SPECIAL ACT BONDS Fund 020 REVENUES AIM TRANSFERS: Racing Commission Funds 341 130,000.00 130,000.00 - 0 - Interest on Investments 431 .:22,189.74 37,850.69 15,660.95 Transfers from General Fund 610 Transfers from Capital Projects 630 _ Interfund 650 Total Revenues and Transfers 152,189.74 167,850.69 15,660.95 EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 50,000.00 50,000.00 - 0 - Interest 9272 53,125.00 53,125.00 - 0 - Dues and Fees 9273 1,200.00 696.60 (503.40) Other Expenses 9279 Transfers 9790 Total Expenditures and Transfers 104.325.00 103.821.60 1503 40) Excess (Deficiency) of Revenue over Expenditures 64,029.09 SECTION 237.161 LOANS Fund 030 TRANSFERS: Transfers from General Fund 610 Transfers from Capital Projects Funds 630 Total Transfers EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 Interest 9272 Dues and Fees 9273 Other Expenses 9279 Transfers 9790 Total Expenditures and Transfers Excess (Deficiency) of Transfers aver Expenditures 33 EXHIBIT D-2 b (Continued) OF MONROE _ IAIINYL 1' DEBT SERVICE, i9'NIIS STATEMENT OV REVENUE, IiUCEI YI'S, I:XPENIIITIIP.ES, AND TRANSFERS FOR 'TIES YEAR LSDI EC JUNE 30, 1977 (Aide FINAL ACTUAL (UNDER) BUDGET BUDCE1 MOTOR VEHICLE REVENUE BONDS Fund 040 REVENUES AND TRANSFERS: COEDS Distributed to District 321 Interest on Investments 431 Transfers from Capital Projects Funds 630 Total Revenues and Transfers EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 Interest 9272 Dues and Fees 9273 Other Expenses 9279 Transfers 9290 Total Expenditures and Transfers Excess (Deficiency) of Revenue over Expenditures DISTRICT BONDS 1955 Issue Fund 050 REVENUES AND TRANSFERS: District I.& S. Taxes 412 - 0 - 5 265.89 5,285.89 Tax Redemptions 421 Excess Fees 423 Interest on Investments 431 2,890.00 5,629.56 2.739.56 Transfers 600 Total Revenues and Transfers _2,890.00 10,915,45 _ 8 025.45 EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 Interest 9272 Dues and Fees 9273 20,000.00 9,644.92 (10,355.08) Other Expenses 9279 Transfers 9190 Total Expenditures and Transfers 20 000 00 9.644 92 (10,165 OR)_ Excess (Deficiency) of Revenue over Expenditures 1,270.53 DISTRICT BONUS 19 Fund 060 REVENUES AND TRANSFERS: District I.& S. Taxes 412 Tax Redemptions 421 _ Excess Fees 423 Interest on Investments 431 Transfers 600 Total Revenues and Transfers EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 Interest 9272 Dues and Fees 9273 Other Expenses 9279 Transfers 9790 Total Expenditures and Transfers Excess (Deficiency) of Revenue over Expenditures See accompanying suruuary of significant accounting policies and notes to financial .statements. 34 „ rout 7 co 3. el , § H > : : A : , , „ \ { : : ° 9 ` CV NI NI eg • : ,. z 2- ° ® j , 0. : ° y //§ . § y = c o. ~ ~ 22^ \ / 36 wi ; 1 VI • U .-- I II 2I j r • waw I• t i ° oP La V I ► E. 1. a e u .- mi CIA n ': v 0 01 .C.1V y r ary o0. " rvry 011 N d 5 ffl W < U O o g u LI J H O U w rry'i iv" El - ~ 00 vm mLu '.`n '< a2 ° i ,, ' � F < o a " " S - (.) 4 r 37 CO 0 yv w m co rva ma rmr co o I- IV IVC41 0 V 6 CO 0 40 0 CA PI Z V VI mLW e CC 0 DI s H 0< 0 VI m ca i <o .1 66 = w 6 w -, o n DI 0 1.4 0 U 41 CO CO CO CO 00 y r r .-i F F 4. • ri i< N 4 m W )4 - 4CCIn E E ? u Nm 6Ca y > _ II.I m u 4- .n > m / Co 6 _ u oFJumi - H 6 0 • 0 VI i o w WI a w m 38 DISTRICT SLHCOI. HOARD EXHIBIT E-2 OF _)'Iunrocc._ COUNT? CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, BXPENDITIMES, AND TRANSFERS FOR THE YEAR ENi,ING JUNE 30, 1977 OVER FINAL ACTUAL (UNDER) BUDGET BUDGET FUND NAME: C. 0. & D. S. REVENUES: R/E 1 Distributed to Districts 321 106 388.94 91,027.39 (15,361.55) Interest -- State 325 3,464.86 3,464.86 Interest earned 431 10,130.93 13,587.16 3,456.23 Total Revenues 116,519.87 108,0/9.41 (8TMO.46) TRANSFERS: From General Fund 610 8,572.38 8,572.38 From Debt Service Funds 620 Interfund 650 Total Transfers TOTAL REVENUES AND TRANSFERS 125,092.25 116,651.79 (8,440.46) EXPENDITURES: R/E 2 Capital Outlay: Library Books 610 Audio-Visual Materials 620 Buildings a Fixed Equipment 630 421,498.64 412,152.6(I (9,3g5.96) Furniture, Fixtures 4 Equipment 640 64,903.85 58,230.85 (6,673.65)— Motor Vehicles 650 Land 660 Land Improvements 670 Remodeling 680 _ Library Books for Existing Libraries 810 Replacement of Furniture, ---- Fixtures 6 Equipment 840 Replacement of Motor Vehicles 850 Total Expenditures 486,402.49 470,383.53 (1679oj TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 Interfund 9795 Total Transfers TOTAL EXPENDITURES AND TRANSFERS 4R6 402 49 470.383.53 (16,018.99_ Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers (353,731.74) 39 EXHIBIT E-2 DIS"T' CT SCHOOL bLfuCi (Continued) OF MONROE COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1977 OVER FINAL ACTUAL (UNDER) BUDGET _ BUDGET FUND N.DIE: C S C (Old) REVENUES: R/E I Interest earned ZTI 6,686.00- _ q 576 1_ 910.71__ Total Revenues 8,666.00 9,576.71 910.71 TRANSFERS: From General Fund 610 From Debt Service Funds 620 - Interfund 650 - -----"' _-----'-_- ' ------ Total Transfers — -- TOTAL REVENUES AND TRANSFERS 44_00 00_ 1,571L73 _910,71__ EXPENDITURES: R/E 2 Capital Outlay: Library Books 610 Audio-Visual Materials 620 _-- Furniture a Fixed Equipment 630 281,468.30 3,:3 5).00 (280i111.30) Furniture, Fixtures E. Equipment 640 -- Motor Vehicles 650 - ---- Land 660 Land Improvements 670 --- Remodeling 680 --- - - '-"_--Library Books for Existing -- —�- Libraries 810 Replacement of Furniture, --""'------ Fixtures N Equipment 840 Replacement of Motor Vehicles 850 — -- --- Total Expenditures 283,468.30 3,357.00 TTgO,111.30 TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 -----'"- -- ------ Interfund 9795 __---'_--- Total TransfersTOTAL EXPENDITURES AND TRANSFERS 283,46830 _ 3 152,40_ 128 .30) Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers (6,219.71) 40 DISTRICT SCHOOL BOARD EXHIBIT E-2 OF MONROE COUNTY (Continued) CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1977 OVER FINAL ACTUAL (UNDER) BUDGET BUDGET _ FUND NAME: P E B A - 1976 REVENUES: R/E 1 Total Revenues TRANSFERS: From General Fund 610 From Debt Service Funds 620 interfund 650 Total Transfers TOTAL REVENUES AND TRANSFERS EXPENDITURES: R/E 2 Capital Outlay: Library Books 610 Audio-Visual Materials 620 Su-Dings & Fixed Equipment 630 80,000.00 26.487.18 (53.512.82) Furniture, Fixtures & Equipment 640 Motor Vehicles 650 Land 660 Land Improvements 670 10,000.00 2,555.90 (7,444.10) Remodeling 680 114,496.32 12,099.42 (102,396.90) Library Books for Existing Libraries 810 Replacement of Furniture, Fixtures & Equipment 840 Rep1 cement of Motor Vehicles 850 Total Expenditures 204,496.32 41,142.50 (163,353.82) TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 Interfund 9795 Total Transfers TOTAL EXPENDITURES AND TRANSFERS 204.496.32 41 142 50 (161.353 82) Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers (41.142.50) 41 EXHIBIT E-2 DISTRICT SCHOOL BOARD (Continued) OF MONROE COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES. EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1977 OVER FINAL ACTUAL (UNDER) BUDGET BUDGET I. u NAIIT : PEBA - 1977 11I)VG'1 11 1)/1' 1 Y 8( 391 336 504.00 336.SLrG.OL_. i I Itev. 336 504 00 - 504.00 Ilvv• tor r.-.1 1111:.: 110 620 lid n t tuck650 loud rans rn_s -.- - 'fP Ilbl:MIS M IltRAN011 I.S 336,504.00 33:,504.00 11F ]trl R/E 2 r 1' I Outlay: IJ Frary Erwin: 610 n Gl::unl ria3c 020 ld od IyuiIkn'Et 630 11 000.00. (11,000.00) r ro rrit uor, I. r'ixt,, ea 1. Ly a'pmem 0 Folnr Volt rl rn 65 650 lid 6G3 Led trap u[e (.7D f ona I log 680 23,650.00 —---- (24,650OD1- I,Okra] v limo: for Ed istin_a - -- — -- -Librzri, 810 .'lac et of fuolity . I 'stunts & Equipment 880 _ ecplaccmant of Motor Vehicles 850 'Total E::pcoditurrs _34,650.00 T34,650.00) THAI "LRS: 1_, T. iihr l Fund 9791 D, Dahlcola:rl r_ eum 9792 I n[orf and 97S) Ibttt 'hanr.fors TO'EV.1 Gxtl:Nllt'TIINDS AID) TPANSl ..1'S —3,4 650.Il0._ _ (14 65_0.00)_ ))crr.s (Oil-ieieney) Of ita>mauee tine Re(aipts over Ivo, l errs and Trans(r.rs _ 336504.00 _ 42 DISTRICT SCHOOL BOARD EXHIBIT E-2 OF Monroe COUNTY (Continued) CAPITAL PROJECTS FUNDS STADDENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1977 OVER FINAL ACTUAL (UNDER) BUDGET BUDGET FUND NAME: C 0 B I (1974) REVENUES: R/E 1 mreroer Parnpd 431 29,207.09 30,279.4] 1,072.38 Total Revenues 29,207.09 30,279.47 1,072.38 TRANSFERS: From General Fund 610 13,967.92 13.967.92 From Debt Service Funds 620 Interfund 650 Total. Transfers 13,967.92 13.967.92 TOTAL REVENUES AND TRANSFERS 43,175.01 44,247.39 1,072.38 EXPENDITURES: R/E 2 Capital Outlay: Library Books 610 Audio-Visual Materials 620 Buildings 6 Fixed Equipment 630 1,356,752.17 1,072,454.14 284,298.03 Furniture, Fixtures 6 Equipment 640 Motor Vehicles 650 Land 660 Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement of Furniture, Fixtures 6 Equipment 840 Replacement of Motor Vehicles 850 Total Expenditures 1.356 752 17 1 072 494 14 284.298,03 TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 Interfund 9795 Total Transfers TOTAL EXPENDITURES AND TRANSFERS 1,356,752.17 1,076,454.14 284,298.03 Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers (1,028,206.75) 43 EXHIBIT E-2 DISTRICT SCHOOL BOARD (Continued) OF Monroe COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1977 OVER FINAL ACTUAL (UNDER) BUDGET BUDGET FUND NAME: L. C. I. REVENUES: R/E 1 Refund Prior year 497 - 0 - 4.95 4.95 Total Revenues - 0 - 4.95 4.95 TRANSFERS: From General Fund 610 9,273.10 9 273.10 - 0 - From Debt Service Funds 620 Interfund 650 Total. Transfers 9.273.10 _ 9,273.10 TOTAL REVENUES AND TRANSFERS 9,273.10 9,278.05 4.95 EXPENDITURES: R/E 2 — Capital Outlay: Library Books 610 Audio-Visual Materials 620 Buildings S Fixed Equipment 630 78 603.08 78,603.08 - 0 - Furniture, Fixtures 6 Equipment 640 Motor Vehicles 650 Land 660 - Land Improvements ements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement of Furniture, Fixtures A Equipment 840 Replacement of Motor Vehicles 850 Total Expenditures 78,603.06 78,603.08 - 0 - TRANSFERS: To General Fund 9791 To Debt Service Funds 9192 Interfund 9795 Total Transfers TOTAL EXPENDITURES AND TRANSFERS 7S 601 Oa 78 603 08 - 0 - Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers -(69,325.03) See accompanying summary of significant accounting policies and notes to financial statements. 44 al en _ 00 .0 _, . 0 0 . 0 . ,,, „ 0 ,, ..., c 0 0 0 0 0 _,0 0 0 0 .. . ,c 0 AD cn_ :n< I H s G trs t. a _ . .. o - _ Cu ; 45 19 c � F C m = ox LC mom CO 9 0 C z LI C n CO 00 GP A 9 C ' O Z + 19 AI o Z. oino moo' 7zz o < u 6' s o ` < o < o < o < ZZ < o aiii o H V .a ili in cC F. 0 0 CO CC NI 9 CD ry ti • u A A # 0 a W 4 b q C d A A C Z t . 9 " 36 - 91 EXHIBIT - F DISTRICT SCHOOL BOARD OF MONROE COUNTY STATEMENT OF GENERAL FIXED ASSETS JUNE 30, 1977 GENERAL FIXED ASSETS Land 1310 2.259.705.67 Buildings and Fixed Equipment 1330 18.590.177.57 Furniture, Fixtures, and Equipment 1340 2.094.639.81 Motor Vehicles 1350 808.654.48 Construction Work in Progress 1360 742.547.92 Total 24,455,725.45 Investment in General Fixed Assets* 2720 24,455,725.45 *Sources of investment in general fixed assets cannot be determined since records of such sources are not maintained. See accompanying summary of significant accounting policies and notes to financial statements. 48 H 6 " � u H P co in 0 4 co o aF - u- • K .] 0416 VHO DO o Do lo Do tn Zr 0O to 0 O t-1 ZWZ Z '=i 060 V00 i W 9 V6 .J 'u 1a ON P V £ F 0 O < � V 0 4 0. am 0 cal az < . 0FH 0 in q = vw O 0> 1 a w u C 1. co d a o N no cw ccC 6 C Z CD % F C o r. YI y :, ;: ) °(� o o `\ , , , , o , j ; , o 12 0 ;\ G /( \ • \ \ \ \ \ ° ^ § \ \ \ \ ( \ o \ in aw ) \ \ \ : • / PC PI ) } \ ( \ \ \ / \ \ 0 -Ca) C P. 49 EXHIBIT - H MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1977 The significant accounting policies followed by the District School Board, Monroe County, are described below to enhance the usefulness of the financial statements to the reader . Reporting Entity The governing body of the School District is the District School Board composed of an elected board with the 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 Administrative Rules . Pursuant to State Board of Education Administrative Rules , the Superintendent of Schools is responsible for keeping records and accounts of all financial transactions in the manner prescribed by the Commissioner of Education . Basis of Accounting The accounts are maintained and financial statements are prepared on the modified accrual basis of accounting, except that depreciation is not recorded. Under the modified accrual basis , revenues are recorded as received in cash except for (1) revenues susceptible to accrual and (2) revenues of a material amount that have not been received at the normal time of receipt . Expenditures are generally recorded when obligations are incurred or when benefits are received. Fund Accounting In order to ensure observance of limitations and restrictions placed on the use of the resources available to the District School Board, the financial records and accounts of the District School Board are maintained in accordance with the principles of "fund accounting." This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however , in the accompanying financial statements , certain funds that have similar characteristics have been combined into fund groups . Accordingly, financial transactions have been recorded by fund group where appropriate. 50 EXHIBIT - H (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1977 The funds used are defined as follows: General Fund. This fund is used to account for resources that are available for the general financial requirements of the District School Board , the only restrictions being those imposed by law and the budget . Generally, they are resources received to finance the educational programs of the District School Board as a whole. The organizational units financed through this fund are those which are directly concerned with the operation and support of the educational program. Special Revenue Funds. This fund group is used to account for resources that are available for the operation and support of the educational program but are restricted by the donors or other outside agency as to the specific purpose for which they may be expended. The organizational units financed through this fund group are usually the same as those financed through the General Fund. Debt Service Funds. These funds are used to account for the resources whichwill be used to retire the long-term debt of the District School Board. Capital Projects Funds. These funds are used to account for the resources that are available for the acquisition or construction of physical property to be used for District School Board purposes and resources designated for the major repair or replacement of District School Board property. These funds are restricted by bond resolution limitations and generally can be expended only for projects approved by a State Department of Education survey and project priority list . These projects include the purchase of land, site development, building construction costs , initial furnishings and equipment for new buildings, and major repairs . General Fixed Assets. This self-balancing group of accounts is used to provide a record of fixed assets owned by the District School Board. Fixed assets purchased under lease-purchase agreements are entered in this group after the last payment is made . General Long-Term Debt. This self-balancing group of accounts is used to account for the general long-term debt of the District School Board. 51 EXHIBIT - H (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1977 Employee Leave Accrued Contingent liabilities exist for accrued annual leave. The accrued annual and sick leave will be taken by employees or will become payable upon termination of employment as provided in the Board' s leave policy and contingent upon available funds. Amounts are not reported on the balance sheet for these contingent liabilities . Retirement System Eligible employees of the Board are members of one or more retirement plans administered by the State of Florida , Department of Administration . These plans call for contributions by the employees and/or the Board at a stated percentage of compensation dependent upon the individual plan. 52 EXHIBIT - I MONROE COUNTY DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30, 1977 1. The first-in first-out method is used in pricing the food, nonfood , and small equipment in the food service inventory. The weighted average method is used in pricing the stores and distribution inventory and the gasoline and oil inventory. The last invoice cost is used for pricing the transportation , maintenance , and textbook inventories . 2. Physical plant and equipment are recorded at the date of acquisition at cost or appraised value. Land donated in prior and current periods is recorded at fair market value at the time of donation . Some items of equipment acquired from the Department of General Services , Division of Surplus Property, have title restrictions . Some land and buildings acquired from the United States of America through the Department of Health, Education , and Welfare have deed restrictions . Depreciation on physical plant and equipment is not recorded. 3. The "Reserve for Encumbrances" is an amount that is segregated from the fund balance and represents obligations in the form of purchase orders or contracts which are not liabilities but which are commitments chargeable to future periods when materials or services are received. 4. To comply with generally accepted accounting principles, the fund balances for the General Fund and Special Revenue Funds at July 1 , 1976, have been adjusted by $154, 725. 33 to show the transfer of the food service program from the General Fund to the Special Revenue Funds. For the fiscal years 1974-75 and 1975-76 the food service accounting was part of the General Fund, as prescribed by the Commissioner of Education . Prior to that date , food service accounting was considered an internal fund and, accordingly, was not reported as part of the budgeted financial statements . 5. The balance sheet of the Special Revenue Funds includes Food Service and Other Special Revenue accounts as follows: 53 EXHIBIT - I (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30, 1977 Total Food Other Service ASSETS Cash $ 602,508.95 $147,776.33 $454,732.62 Accounts Receivable 323,183.46 72,089.58 251,093.88 Inventory 111,928.86 111,928.86 TOTAL ASSETS $1,037,621.27 $331,794.77 $705,826.50 LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable $ 9,108.29 $ $ 9,108.29 Construction Contracts Payable 48,498.00 48,498.00 Due to Budgetary Funds 578,111.32 74,499.95 503,611.37 Due to Other Agencies 96,639.64 96,639.64 Total Liabilities $ 732,357.25 $ 74,499.95 $657,857.30 Fund Balance: Unappropriated Fund Balance $ 305,264.02 $257,294.82 $ 47,969.20 TOTAL LIABILITIES AND FUND BALANCE $1,037,621.27 $311,794.77 $005,826.50 6. Revenues , expenditures , and transfers of the Special Revenue Funds are summarized for Food Service and Other Special Revenue accounts as follows: Total Food Other Service Revenues $2,090,884.20 $1,267,829.22 $ 823,054.98 Remittances from Others 485,893.80 485,893.80 Incoming Transfers 619,274.41 619,274.41 Total Revenues, Remittances, and Transfers $3,196,052.41 $1,267,829.22 $1,928,223.19 Expenditures: 125,716.74 Food Services $1,253,413.12 $1,127,696.38 $1,125,716.74 Other 1,614,187.07 Total Expenditures $ 2,867,560.19 867,560.19 $1,127,696.38 $1,739,863.81 39,863.81 Transfers Total Expenditures and Transfers 63,035,560.19 $1,127,696.38 $1,907,863.81 Excess of Revenues, Remittances, and Transfers Over Expenditures and Transfers $ 160,492.22 $ 140,132.84 $ 20,359.38 54 EXHIBIT - I (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30 , 1977 7 . Changes in the fund balance of the Special Revenue Funds for Food Service and Other Special Revenue accounts are as follows: Total Food Other Service Fund Balance, July 1, 1976 $ 29,507.21 $ $29,507.21 Reclassification of Food Service Fund from General Fund (Note 5) 154,725.33 154,725.33 Adjusted Fund Balance, July 1, 1976 $184,232.54 $154,725.33 $29,507.21 Add: Excess of Revenues, Remittances, and Transfers Over Expenditures and Transfers 160,492.22 140,132.84 20,359.38 Deduct: Adjustments to Decrease Fund Balance 39,460.74 37,563.35 1,897.39 Fund Balance, June 30, 1977 $305,264.02 $257,294.82 $47,969.20 8. State funds for current operations were received primarily from the Florida Education Finance Program (FEFP) administered by the State Department of Education . Allocations were made by the State Department of Education based mainly on reports of full- time equivalent students submitted during the current year by the District School Board. The current year' s allocation is subject to adjustment in subsequent years by the State Department of Education for reporting errors and other factors . Any adjustments for allocations received during the current year may be made in subsequent years' allocations . 9 . Bonds payable of $ 3, 150, 000 represent the Board' s portion of bonds sold through the Department of Education on behalf of specific community colleges and district school boards. 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 purposes 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 . Details on these bonds are as follows: 55 EXHIBIT - I (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30 , 1977 Original Issues Principal Issue Balance $ 750, 000 Bonds Dated June 1 , 1962 $ 260.000 2,990,000 Bonds Dated January 1 , 1974 2,890,000 Total $3, 150L000 The maturity dates of the bonds range from January 1 , 1978, through January 1 , 1995, and the interest rates vary from 2 .75 percent to 5 .5 percent . Bonds payable of $ 1,060,000 represent special act certificates of indebtedness dated June 1 , 1966, maturing from the present to June 1 , 1991. The original total issue was $ 1 , 500, 000 with interest rates from 5-1/2 percent to 4-5/8 percent. 10. The amount shown as judgments payable of $25,000 represents the balance of money awarded by the Legislature in Chapter 70-814, Special Acts of 1970. The original amount was $70,000 payable in annual increments of $5,000 each from the General Fund, following an initial payment of $ 10,000. 56 EXHIBITS The following exhibits for the fiscal year ended June 30, 1978, are attached to and form a part of this report: Combined Section EXHIBIT - A Combined Balance Sheet - All Funds . General Fund EXHIBIT fa-1 Balance Sheet. EXHIBIT B-2 Statement of Revenues , Expenditures, and Transfers . EXHIBIT B-3 Statement of Changes in Fund Balance . Special Revenue Funds EXHIBIT C-1 Balance Sheet. EXHIBIT C-2 Statement of Revenues , Expenditures , and Transfers . EXHIBIT C-3 Statement of Changes in Fund Balance . Debt Service Funds EXHIBIT D-1 Balance Sheet. EXHIBIT D-2 Statement of Revenues , Receipts, Expenditures , and Transfers . EXHIBIT D-3 Statement of Changes in Fund Balances . Capital Projects Funds EXHIBIT E-1 Balance Sheet . EXHIBIT E-2 Statement of Revenues, Expenditures , and Transfers . EXHIBIT E-3 Statement of Changes in Fund Balances . 57 General Fixed Assets EXHIBIT - F Statement of General Fixed Assets . General Long-Term Debt EXHIBIT - G Statement of General Long-Term Debt. Other EXHIBIT - H Summary of Significant Accounting Policies . EXHIBIT - I Notes to Financial Statements. EXHIBIT - J Statement from Audited Official. 58 0 0 0 § ; \ ~ )� \\\�� \ 13 N00 ; - n '0 : . < Jj \ Zi- ; } „ / o ; , ;; Z — , : § . , :. , II ;_ : N \Z ;} § r ! / | / rat'_ , ` ` ! 1 , /j\ \�\ ) g: Q7 y! , {:Z; :<:r _ ,. \-_ §! :! 0r/ 04V V14VSI f;_; , „ }}j:y \ / / CO41 x co \) )\\ . < !}\\� � )\/\ ) ijj) \)i \ ) 59 I ; . ! ( ) ` ( \ ] l `) ) } ` § ( \\ \ ( § § ! ! 0 <: : : ` - - ^ ` , GE— - = 0e n; \ cc cc ry , / ; . )\ rie en 4 B 8zen ` ` . . . . , . ` r , , cc cc cc § { J !! e i ! K § < § :! !: : ` (\ , /\ / o ` { ` _ : ^ 5 t dG \ > \ ) - , . 30 0 \/ \ \ / / ;;�;Z ; ; :^ Z 2Ce . . ! na, . , ! ! !! 1 4 ( \ ; < . : _ { \: ! ;,: ; \ = -I \ } 60 DISTRICT SCHOOL BOARD EXHIBIT B-1 OF MONROF COUNTY GENERAL FUND BALANCE SHEET JUNE 30, 1978 ASSETS Cash 1110 I R95 11R 9n Taxes Receivable 1120 11R fill fie Accounts Receivable 1130 41,930.00 Due From Other Funds: Due from Budgetary Funds 1141 472,394.33 Due from Internal Funds 1142 R 625 11 Inventory 1150 218.163.09 Investments 1160 Other Current Assets: Deposits Receivable 1210 Due from Other Agencies 1220 TOTAL ASSETS 2.685 042.44 LIABILITIES, RESERVES, AND FUND BALANCE LIABILITIES: Salaries and Wages Payable 2110 Accounts Payable 2120 39.512.67 Construction Contracts Payable 2140 Due to Other Funds: Due to Budgetary Funds 2161 Due to Internal Funds 2162 31.736.65 Payroll Deductions 6 Withholdings 2170 Other Current Liabilities: Deposits Payable 2220 Due to Other Agencies 2230 Total Liabilities 71.269.12 RESERVES: Reserve for Insurance Loss Recoveries 2640 9,216.67 Total Reserves 9 216.67 FUND BALANCE: Reserve for Encumbrances 2610 _ 242 231 90 • Unappropriated Fund Balance 2710 2 362 322.55 Total Fund Balance 2.604.556.45 TOTAL LIABILITIES, RESERVES, AND FUND BALANCE 2 685 042_.44 *Reserve for Encumbrances includes encumbrances for Capital Outlay (Objects 600 and 800) of $ 184,909.57 . See accompanying summary of significant accounting policies and notes to financial statements. 61 EXHIBIT B-2 DISTRICT SCHOOL BOARD OF MONROE COUNTY GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING SINE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REVENUES BUDGET REVENUES FEDERAL DIRECT: Department of HEW: Federal Impact, Current Operation 121 1,026,698.00 1,159,998.02 133,300.02 Other Federal Direct: 191 Key Deer Refuel 30.000.00 40,734.16 10,734.18 YtlitarctEXXXXIMMIXIX Other (VAfee) 14.00 14.00 Total Federal Direct 1,056,698.00 1,200,746.20 144,048.20 FEDERAL THROUGH STATE: N.D.E.A., Title III 211 Comprehensive Employment Training Act 220 National Forest Funds 255 Other Federal Through State 290 Indo-Chinese Refugee Program 292 Total Federal Through State STATE SOURCES: Florida Education Finance Program 310 6 497 776 OQ 5 666 269.00 (B31 497.00) Adult Community Instructional Svs. 315 31 360 00 33 360 00 COEDS Withheld for Administrative Exp. 323 4 686 61 4.6E6.63 Categorical State Sources: Comprehensive Health Education 331 12,312.00 12,312.00 Community School Program 334 60,000.00 54,000.00 (6,000.00) Exceptional Child Support Services 335 Instructional Materials 336 87,330.00 65,790.00 (21,540.00) Student Development Services 351 94,261.00 93.638.00 (623.00) Environmental Education 353 9,500.00 9,500.00 Transportation 354 307.639,OQ 303.339.00 (4.300.00) Visually Handicapped Resources 355 School Volunteer Program 357 3 n00 00 1 000 00 Compensatory Education 358 66 000 00 66.300 00 Other 359; 360; 361; 362; 363; 364 _ 17 620.00 18,535.00 915.00 Other State: Racing Commission Funds 341 90,000.00 93,250.00 3,250.00 State Forest Funds 342 State License Tax 343 90,000.00 21,225.68 (66,774.32) Total State Sources 7,373,474.63 6,446,905.31 (926.569.32) LOCAL SOURCES: District School Taxes 411 5 915 010.00 5 992 142 80 77 132.80 Tax Redemptions 421 10 930 04 10 903 04 P. Law 95-565 422 37,581.29 37,581_29 Excess Fees 423 2.902.47 2,902.47 Tuition 424 2.000 00 5.150.00 3,150.00 Rent 425 1 000 00 120 00 (880 00) Interest, Including Profit on Investments 430 19,936.00 66,457.55 46,521.55 Gifts, Grants, and Bequests 440 3.200.00 3,200.00 Miscellaneous Local Sources: Receipt of Federal Indirect Cost Rate 494 51,509.06 51,509.06 Other Local Sources 5 -500 00 60,480.50 4,980.50 Total Local Sources 5 993 446 OD 6 210 473 71 - 237 027.71 TOTAL REVENUES 14.423.618 61 13 878 125.22 (545.493.41) 62 DISTRICT SCHOOL BOARD EXHIBIT B-2 OF MONROE COUNTY (Continued) GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REVENUES BUDGET REMITTANCES FROM OTHERS: Remittances for Transportation 510 Remittances from Other Agencies 520 30,000.00 30,000.00 Remittances from Internal Funds 530 Total Remittances from Others 30,000.00 30,000.00 INCOMING TRANSFERS: From Debt Service Funds 620 From Capital Projects Funds 630 From Special Revenue Funds 640 Interfund 650 Total Incoming Transfers NON-REVENUE SOURCES: Sale of Fixed Assets 730 11,891.26 _ 11,891.26 Insurance Loss Recoveries 740 Total Non-Revenue Sources 11,891.26 11,891.26 TOTAL REVENUES, REMITTANCES, TRANSFERS, AND NON-REVENUE RECEIPTS 14,453,618.63 13,910,016.48 (533,602.15) 63 H w O • \ \ ! \/d/ d+/\ q' . \12 } (} /\< , \ 1 \ _/\ /\ 7/ : ( i \ < y \} I INI ~ L. \ I" I \ iglu 1.........z10d_ a,l/ \ \ Cl O. \)/ NO , : ; ; : Q:y y ; : } . „ 1 \ ' : a\>/\ /\ y/ •- \ \\`41 cc; \ \\ \ /\ /z J J t Ft 2\ // ) . / ?°d/\• qqI y : ` » c.cri ° �\ » \ ) _ - ' - s W \ '2 \/\\ / ) j } } . / ` � , \yyw%os:y«! . -ciU - , /S«a:y \\ccr—q'\ ) a3, , 15 , . __ y y \ \ en 2Z NI col \J{/ / \ \ . /; � y� \\yy - g ^ Gd\ «©dd - \ /camp_ / \ /< / \ }/\ } \\ � k ^�\ C 'S /S\ \9d ; / �§/ /, d} \ } d 1 . � �. , i= \ 2/ \ \.1 ° E ~ 22\ { \ [ 6 / \ \ ` I " \\ \ \ \ / \ \ \ \\ }\ \{// \ \ / • : DISTRICT SCHOOL BOARD EXHIBIT B-3 OF MONROE COUNTY GENERAL FUND STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEAR ENDING JUNE 30, 1978 FUND BALANCE*, July 1, 1977 2700 1 3,064,983.24 Add: Excess of Revenue and Transfers over Expenditures and Transfers 2 Adjustments to Increase Fund Balance 3 Total Additions 4 Total Balance and Additions 5 3,064,983.24 Deduct: Deficiency of Revenues and Transfers over Expenditures and Transfers 6 460,426.79 Adjustments to Decrease Fund Balance 7 Total Deductions 8 460,426.79 FUND BALANCE*, June 30, 1978 2700 9 2,604,556.45 *Fund Balance includes Reserve for Encumbrances See accompanying summary of significant accounting policies and notes to financial statements. 65 o F W co o PED CO o. 2 ^ a En `. {- x 11 • > x— — I ] o6Z o W t .0 ) W r cor r - r Z CC x ..0 a. .. .err r co r r r r co co 0. 0 CALE la z j • 14 cu N • K fi K 3 � A. OEE a x T p b. n e 0 o0a `> a H r < ` e: Or H .� hau°.. s a a c A LA G an LL 0 s x 66 EXHIBIT C-2 DISTRICT SCHOOL BOARD OF MONROE COUNTY SPECIAL REVENUE FUNDS - FOOD SERVICE STATEMENT OF REVENUES, EXPENDITURES AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REVENUES BUDGET REVENUES FEDERAL DIRECT: Total Federal Direct FEDERAL THROUGH STATE: National School Lunch Act 260 620,026.00 640,880.65 20,854.65 Other rederal Through State 290 Total Federal Through State 620,026.00 640,880.65 20,854.65 STATE SOURCES: Food Service Supplement 338 48,628.81 33,880.62 (14,478.197 Total State Sources 48,628.81 33,880.62 (14.748,19) LOCAL SOURCES: Interest, Including Profit on Investments 430 Grants, Gifts and Bequests 440 Food Services 450 578,485.66 599,358.35 20,872.69 Miscellaneous Local Sources 490 186 20 186.20 Total Local Sources 578.485.66 599 544 55 21 058.89 TOTAL REVENUES 1,247,140.47 1,274,305.82 27,165.35 REMITTANCES FROM OTHERS 500 INCOMING TRANSFERS 600 TOTAL REVENUES, REMITTANCES AND TRANSFERS I,24] 140.4] 1,274,305.82 27,165.35 67 EXHIBIT C-2 DISTRICT SCHOOL BOARD (Continued) OF MONROE COUNTY SPECIAL REVENUE FUNDS - OTUER STATEMENT OF REVENUES, EXPENDITURES AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REVENUES BUDGET REVENUES FEDERAL DIRECT: Head start 130 Civil Rights Act, Tfle IV 140 Emergency School Assistance Act(ESAA)161 Comprehensive Employment Training Act (CETA) 170 Community Action Programs 180 x.O.T.C. 191 Other Misc. Federal Direct 199 130.000.00 95 913.04__ (34 086 96) Total Federal Direct 130,000.00 95,913.04 (34,086.96) FEDERAL THROUGH STATE: Vocational Education Acts 201 44.552.21 170.672.35 126,120.14 N.D.F..A. 210 168 74 (168.74) Comprehensive Employment Training Act (CETA) 220 see 989 00 160,354.24 (109,634.76) Elementary Secondary Education Act (ESEA) 240 821,613.12 647,120.94 (174,492.18) Adult Basic Education 251 12,862.00 12,158.53 (703.47) Higher Education Act (EPDA) 252 Vocational Rehabilitation 253 Other Federal Through State 290 49,484.00 34,062.78 (15,421.22) 1,198,669.07 1,024,368.84 (174.300.23) Total Federal Through State _ STATE SOURCES: Total state Sources LOCAL SOURCES: Interest, Including Profit on Investments 430 Grants, Gifts, and Bequests 440 _ Miscellaneous Local Sources 490 5.87 5.87 Total Local Sources 5.87 5.87 TOTAL REVENUES 1,328,669.07 1,120,287.75 (208,381.32) REMITTANCES FROM OTHERS 500 1,358,750.00 1,086,034.64 (272,715.36) INCOMING TRANSFERS 600 179,199.00 138,408.58 (40,790.42) TOTAL REVENUES, REMITTANCES, AND TRANSFERS 2,866,618.07 2,344,730.97 (521,887.10) 68 i r 1 I � e ni agl PI o ' 1 I I I .— t I „1 ' II 1 i i la el - CII< ' 1 J - I I "I Et° I m a2PP 8 om t PV irc 1 Z P• II Ili m l 1� G � �8 m, p Lx1oJ8 n I- 1 1 I rc 0 2 o w rr I • Ja 2 00 S I t I LA � i ZLL E p=Z ,`, ct Z am o x q uh f I -- R a No r I - - y ' s: > z N O WF '^ I x O ' 0 �o 3y l Q I O. I — 1 '4 II I! - 1 d E ]' w 9 - IM '1 5 - a € P 8 I�. I E 2221 1 0 i z'' 2LL !I 1 ,If 2221222i2 c, 69 olimlN 'w °oj°iNl 1 1 �� I I 'I ` l0 Irw Hiyi �� I ei c oms I I< ; LL I- �0 1 a aE2 yI� PllPa �I P m llm re o f1:4 .1 G Ea- °`�I of m Lc' CI CD n' F =LL of of . I e _u 1Nl �)s mpm Im EHal Z - rn �+Im ml _ o a . m _ ,, o h m O Gc a I d.s I< � �.-" loll III t- - 5p . W k l I l IF ttr - _ -w m -rrm -tI +� r � > zo oI I� a- i _ oI P< �po - v I Cq, , I' E ' a = ia j ^~^l ' w II I cn 0 w opIm1. Io' I v„I cloo ;° gl 1.1 w1 - i 0ial 1oico:I I , IceohC cciV - , N II mlm o .0 NI c^rmI I 121Z mC' '2a^ o IP .: _C I I la m as� -- El I I ryII I F i i e € 5 Bi El Ej a 6'41§ I I 1 L c No1 - - s z z I f [I :'. ' I I I III E '_ = FE g € A 6 - Ff t i -�k - -. 70 V F IN FA IN O 6 H O N O O EI V 0 CI MD ND CM pm z P O El CI In V 4:7 en O ul J P in N C y E F w z w N J dP y o ?=0 > c C W M 1-1 u • Oo ix z O N N In ¢ 2 V IN Z C = y NOW F 0 10 V. X W V IC Imo 0 : Co O In £ S FO FW 0 CI 0. Y. col /. n N ry IF. G N > PE al IF Nf 9 C 01 C W ] 9 — m C C ] C Z E z s< — 71 an al o : \ \ \ \ \ 2 ill 0 al 0 al \ _, : \) LI al \ / )\ z \ \ \ 0 \ - } Ca al : ( ( \ 2 \ \ a ! i . } } i z § 0 \ l \ \ \ : .! } } ! ; .„ , , , ;,; ; !\ Lig r °)\ ; i : )` I } : \ I : § ; ; { / / 2 : � } , 2 \ } DISTRICT SCHOOL BOARD EXHIBIT D-2 OF MONROE COUNTY DEBT SERVICE FUNDS STATEMENT OF REVENUES, RECEIPTS, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REV. / EXP. BUDGET STATE BOARD OF EDUCATION/ COBI BONDS Fund 010 REVENUES: LOADS Withheld for SBE Bonds 322 224,425.46 224,425.46 Cost of Issuing SHE Bonds 324 SEE Bond Interest 326 40,452.44 40,452.44 Sale of Bonds 710 Total Revenues 264,877.90 264,877.90 EXPENDITURES: Redemption of Principal 9271 110,000.00 110,000.00 Interest 9272 158,880.00 158,880.90 Dues and Fees 9273 J63.08 _ 363.08 Other Expenses 9279 Total Expenditures 269,243.08 269,243.08 Excess (Deficiency) of Revenue over Expenditures (4,365.18) SPECIAL ACT BONDS Fund 020 REVENUES AND TRANSFERS: Racing Commission Funds 341 130,000.00 130,000.00 Interest on Investments 431 24.728.48 24,728.48 Transfers from General Fund 610 Transfers from Capital Projects 630 Interfund 650 46,056.63 46,1156.63 Total Revenues and Transfers 176.056.63 200,785.11 24,728.48 EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 101,000.00 100,000.00 (1,000.00) Interest 9272 50,687.50 49,651.22 (1 036.28) Dues and Fees 9273 1.500..00 520.20 (979.80) Other Expenses 9279 Transfers 9790 46,056.63 _ 46,056.63 Total Expenditures and Transfers 199,244.13 196,228.05 (3,016.08) Excess (Deficiency) of Revenue over Expenditures 4,557.06 SECTION 237.161 LOANS Fund 030 TRANSFERS: Transfers from General Fund 610 Transfers from Capital Projects Funds 630 Total Transfers EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 Interest 9272 Dues and Fees 9273 Other Expenses 9279 Transfers 9790 Total Expenditures and Transfers Excess (Deficiency) of Transfers over Expenditures 73 EXHIBIT D-2 DISTRICT SCHOOL BOARD (Continued) OF MONROE COUNTY DEBT SERVICE FUNDS STATEMENT OF REVENUES, RECEIPTS, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING TUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REV. / EXP BUDGET MOTOR VEHICLE REVENUE BONDS Fund 040 REVENUES AND TRANSFERS: CORDS Distributed to District 321 Interest on Investments 431 Transfers from Capital Projects Funds 630 Total Revenues and Transfers EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 Interest 9272 Dues and Fees 9273 Other Expenses 9279 Transfers 9790 Total Expenditures and Transfers Excess (Deficiency) of Revenue over Expenditures DISTRICT BONDS 1955 Fund 050 REVENUES AND TRANSFERS: District I.R S. Taxes 412 .25 .25 Tax Redemptions 421 1.77 1.77 Excess Fees 423 Interest on Investments 431 3,091.00 8,620.15 5.529.15 Transfers 600 Total Revenues and Transfers 3,091.00 8,622.17 5,531.17 EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 Interest 9272 _ Dues and Fees 9273 Other Expenses 9279 Transfers 9790 Total Expenditures and Transfers _ Excess (Deficiency) of Revenue over Expenditures 8,622.1] DISTRICT BONDS 19 Fund 060 REVENUES AND TRANSFERS: District I.& S. Taxes 412 Tex Redemptions 421 Excess Fees 423 Interest on Investments 431 Transfers 600 Total Revenues and Transfers EXPENDITURES AND TRANSFERS: Redemption of Principal 9271 Interest 9272 Dues and Fees 9273 _ Other Expenses 9279 Transfers 9790 _ Total Expenditures and Transfers Excess (Deficiency) of Revenue over Expenditures See accompanying summary of significant accounting policies and notes to fivanclal statements. 74 \ // HI 2 PI 1-4 / / ca // \ \ \ \ § \ , o al ) § j\ ) \\ /{ \ . to x ` ) in HI No > : III 0 § { .x 41 N ` c CI , o LII H PP 21 ICI • ).In lE CO H ° Ea - N. § }En 0 \ - • \ \ z } ( . . E I / / ~ » / \ \ (/ PI 9 \ Wa. : :! . ! , ,ti 75 ( ` ` } \ \\ \ !§ ( \ / \ 0 0 \ \ \- . . , , ` : . , cn , \ . _ / _• �: _ \ };� , , „ \ / � ,0 \ ZO VI 0 : ] §§§/! §!/§ § ] ! • §§ \ \ § > \ ( 00 \ § \l <} \ . } § j \ > \ a § (! \ ( ! ; \ } { � ) ! R2E 76 0, 0b m 8P - F - C v N 0a • N i. 6 c. oo m en 3al 0 ou '0 . o mpv ^ o o 0 c o 0 0.. c m� .0 2 0. A ^▪^^ ^^ 0. r 0 00 t r r VI N w w u y .. }aZZ { V 0 y u• K0 N 66 i +1 Ztjt 6 • • x p rn m0 U la ~ v0 0 .. tea`' lIt m a LL .. w '" w' y xm � H ."� o.se ea a4 ea. 0 3 "c r V 00 . . .. . . H 'd 2U0'O 0 2 W mr Nm 77 hj \ } � \ � � j / CO / .18. : )( ! ]) 8>4 ! /) § / ; ; : E ° ;; 2dg = ." - ) ; : ; \ § \) CO ( ! oc ! /| § ; .! . \ \ \ _ \tcOu ' a \ ! \ ! to 2 B O. ! a ! , ( Z ) 2trtft : ; ; ; 0C- I = _ / \ © ^ » : 78 DISTRICT SCHOOL BOARD EXHIBIT E-2 OF MONROE COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REV. / EXP. BUDGET FUND NAME: Capital Outlay and Debt Service REVENUES: R/E 1 Distributed to Districts 74 777 47 83 129.91 8 552 44 Interest on Undistributed 325 3 977 85 3 977.85 Other Federal Through State flU 91 038 00 93 038.00 Total Revenues 74.777 47 110 345 76 35,568.29 TRANSFERS: From General Fund 610 From Debt Service Funds 620 Interfund 650 Total Transfers TOTAL REVERIES AND TRANSFERS 74,777.47 _ 110,345.76 35,568.29 EXPENDITURES: R/E 2 Capital Outlay: Library Books 610 Audio-Visual Materials 620 Buildings 6 Fixed Equipment 630 -- Furniture. Fixtures 6 Equipment 640 Motor Vehicles 650 Land 660 Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement of Furniture, Fixtures 6 Equipment 840 Replacement of Motor Vehicles 850 Total Expenditures TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 Interfund 9795 Total Transfers TOTAL EXPENDITURES AND TRANSFERS Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers 110.345.76 79 EXHIBIT E-2 DISTRICT SCh OO1. BOARD (Continued) OF Monroe COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDI NO JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BODGFf REP. / EXP. BUDGET _ FUND NAME: C. S. C. REVENUES: R/E 1 Total Revenues _ _ 0 - TRANSFERS, From General Fund 610 From Debt Service Funds 620 Intertund 650 Total Transfers -- TOTAL REVENUES AND TRANSFERS FXPENDITURES: R/E 2 Capital Outlay: Library Books 61.0 Audio-Visual Materials 620 Buildings d Fixed Equipment 630 Furniture, Fixtures b Equipment 640 _ Motor Vehicles 650 Land 660 Laud Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement of Furniture, Fixtures b Equipment 840 Replacement of !toter Vehicles 850 _ Total Expenditures - 0 - TRANSFERS: To General Fund 9791 Tr Debt Service Funds 9/92 Interfend 9195 Total Transfers TOTAL EXPENDITURES AND TRANSFERS - 0 - Excess (Deficiency) of Revenues and Receipts over Expenditures and transfers 80 DISTRICT SCHOOL BOARD EXHIBIT E-2 OF MONROE COUNTY (Coatinued) CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REV. / EXP. BUDGET FUND NAME: PEBA - 1976 REVENUES: R/E 1 Total Revenues TRANSFERS: From General Fund 610 _ From Debt Service Funds 620 Interfund 650 Total Transfers TOTAL REVENUES AND TRANSFERS _ EXPENDITURES: R/E 2 Capital Outlay: Library Books 610 Audio-Visual Materials 620 80.000 00 22 571 91 (57 426.093_ Buildings 6 Fixed Equipment 630 Furniture, Fixtures & Equipment 640 Motor Vehicles 650 Land 660 Land Improvements 670 2n 9]0 00 7 175 AA (Il 594 17) Remodeling 680 104.496.32 34.833.03 (69.663.29) Library Books for Existing Libraries 810 _ Replacement of Furniture, Fixtures 6 Equipment 840 Replacement of Motor Vehicles 850 Total Expenditures 205,466.32 64,782.82 (140.683.50) TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 Interfund 9795 _ Total Transfers TOTAL EXPENDITURES AND TRANSFERS 205,466.32 64.782.82 (140.683.50) Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers (64,782.82) 81 EXHIBIT E-2 DISTRICT SCHOOL BOARD (Continued) OF Monroe COUNTY CAPITAL PROJECIS FUNDS STATEMENT OF REVENUES, E(PENDITURES, AND TRANSFERS FOR THE YEAR ENOING JUNE 30, 1918 OVER FINAL ACTUAL (UNDER) BUDGET REV. / EXP. BUDGET FUND NAME: PEBA - 1977 REVENUES: R/E 1 Total Revenues TEAK SFERS: From General Fund G10 From Debt Service Funds 620 Inrerfund 650 Total Transfers TOTAL REVENUES AND TRANSFERS EXPENDITURES: R/E 2 Capital Outlay: Library Books 610 Audio-Visual Materials 620 Buildings 6 Fixed Equipment 630 59,417.00 48,417.00 (11,000.00) Furniture, Fixtures 6 Equipment 640 115,000.00 96,084.13 (18,915.82) Motor Vehicles 650 Land 660 Land Improvements 670 10 000 00 - 0 - (10,000.00) Remodeling 680 31 650 00 4.507.13 (29,142.87) Library Books for Existing Libraries 810 Replacement of Furniture, Fixtures 6 Equipment 840 Replac went of Motor Vehicles 850 Total Expenditures 218,067.00 149,008.26 (69,058.74) TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 Interfund 9795 Total Transfers TOTAL EXPENDITURES AND TRANSFERS 218,067.00 149,008.28 (69,058.74) Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers (149,008.26) 82 DISTRICT SCHOOL BOARD EXHIBIT E-2 OF Monroe COUNTY (Continued) CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REV. / EXP. BuncEr FUND NAME: P E BA - 1978 REVENUES: R/E 1 PERA 391 511,939.00 511,939.00 Total Revenues 511,939.00 511,939.00 TRANSFERS: From General Fund 610 From Debt Service Funds 620 Incerfund 650 Total Transfers _ TOTAL REVENUES AND TRANSFERS 5L1 939.00 511,939.00 - 0 - EXPENDITURES: R/E 2 Capital Outlay: Library Books 610 Audio-Visual Materials 620 Buildings 6 Fixed Equipment 630 Furniture, Fixtures & Equipment 640 Motor Vehicles 650 Land 660 Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement of Furniture, Fixtures & Equipment 840 Replacement of Motor Vehicles 850 Total Expenditures _ 0 _ _ n _ TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 Interfund 9795 Total Transfers _ TOTAL EXPENDITURES AND TRANSFERS Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers 511,939.00 83 EXHIBIT E-2 DISTRICT SCHOOL BOARD (Continued) OF MONROF COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REV. / EXP. BUDGET FUND NAME: C 0 B I - 74 REVENUES: R/E 1 Total Revenues TRANSFERS: From General Fund 610 From Debt Service Funds 620 Interfund 650 Total Transfers TOTAL REVENUES AND TRANSFERS EXPENDITURES: R/E 2 Capital Outlay: Library Books 610 Audio-Visual Materials 620 _ Buildings A Fixed Equipment 630 99 9L9 IA 38 971.89 (977 27) Furniture, Fixtures A Equipment 640 Motor Vehicles 650 Land 660 Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement of Furniture, Fixtures 6 Equipment 840 Replacement of Motor Vehicles 850 Total Expenditures 39 949 16 38.971 89 (977 27) TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 Interfund 9795 Total Transfers TOTAL EXPENDITURES AND TRANSFERS 39.949.16 3R 971 89 (977.27) Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers (38 971 89) 84 DISTRICT SCHOOL BOARD EXHIBIT E-2 OF MONROE COUNTY (Continued) CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS FOR THE YEAR ENDING JUNE 30, 1978 OVER FINAL ACTUAL (UNDER) BUDGET REV. / EXP. BUDGET FUND NAME: LCIF REVENUES: R/E 1 Total Revenues -0- -n- -0- TRANSFERS: From General Fund 610 From Debt Service Funds 620 _ Interfund 650 _ Total Transfers TOTAL REVENUES AD TRANSFERS -0- -0- -0- EXPENDITURES: R/E 2 Capital Outlay: Library Hooks 610 Audio-Visual Materials 620 Buildings 6 Fixed Equipment 630 Furniture, Fixtures & Equipment 640 Motor Vehicles 650 Land 660 - Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement of Furniture, Fixtures 6 Equipment 840 Replacement of Motor Vehicles 850 Total Expenditures -0- -0- -0- TRANSFERS: To General Fund 9791 To Debt Service Funds 9792 Interfund 9795 Total Transfers -0- -0- -('- TOTAL EXPENDITURES AND TRANSFERS Excess (Deficiency) of Revenues and Receipts over Expenditures and Transfers -0- See accompanying summary of significant accounting policies and notes to financial statements. 55 § : ; J nrn! E \ \ \ . ! ! § \ j ) - r a / 18 o ; r ° ) ( ;} ! o \ ;./ - Co\\ ` , , / � E . -0 0 0 ow 0 > / . j \ ) ! � \ % . !} i _ ) ow 4 § ! ! ))y :)) £ ; | 86 OP e n o.. CO .� ^$° o . a' a • ao q m 4 ^ 8.°. `F wtiz o- < ya 6 N o" a" ,O a C G b a 4 Oa o wg M HO w e " "2 2a 8.-" mFv � 'c °c "~ e ( ZO " N ^". :.^ " a 4 " " 6 06 O 6 < O 87 \ N. \ � \ §j ® )§0. ' A / R. ! \§ )§ ( , g4 i t }!; ! §( { ;:, - EiS ) j )§ 0 -0 \ 0 -• H FA § ! gil a ! ! \§ ; \ \ § ; . : \ ]; /; ) !! ! 3! §! : . ; : , .. ; ° { n .. , � !\ }),I. _ . |< CG© A e4 88 DISTRICT SCHOOL BOARD EXHIBIT - F OF MONROF COUNTY STATEMENT OF GENERAL FIXED ASSETS JUNE 30, 1978 GENERAL FIXED ASSETS Land 1310 2,657,060.63 Buildings and Fixed Equipment 1330 19.974.996.74 Furniture, Fixtures, and Equipment 1340 2 327.292.02 Motor Vehicles 1350 907 170.06 Construction Work in Progress 1360 807.478.31 Total 26 673 997 76 Investment in General Fixed Assets* 2720 26,673,997. 76 *Sources of investment in general fixed assets cannot be determined since records of such sources are not maintained. See accompanying summary of significant accounting policies and notes to financial statements. 89 81 o • �82 ) § ` \ � \ 0 0 o o 0 0 0 • ` o• ro , 8 , o \ ` { 2 ) )/ P. ; « Ow /;tz `�� , 0 0 • ) ( w' m• „ . lo § � � / Cl EN WU a ea Cu L j§ \! \ ; # \ \ ;! 0 . N - \ \ § } ` ( 2 \_ � . } \ C ) \ .( _ ! \ { ; i ){ ! i8 ; ! / \ 90 EXHIBIT - H MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30 , 1978 The significant accounting policies followed by the District School Board , Monroe County, are described below to enhance the usefulness of the financial statements to the reader . Reporting_Ent ity The governing body of the School District is the District School Board composed of an elected board with the 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 Administrative Rules. Pursuant to State Board of Education Administrative Rules, the Superintendent of Schools is responsible for keeping records and accounts of all financial transactions in the manner prescribed by the Commissioner of Education . Basis of Accounting The accounts are maintained and financial statements are prepared on the modified accrual basis of accounting, except that depreciation is not recorded. Under the modified accrual basis, revenues are recorded as received in cash except for (1) revenues susceptible to accrual and (2) revenues of a material amount that have not been received at the normal time of receipt . Expenditures are generally recorded when obligations are incurred or when benefits are received. Fund Accounting In order Eo ensure observance of limitations and restrictions placed on the use of the resources available to the District School Board , the financial records and accounts of the District School Board are maintained in accordance with the principles of "fund accounting." This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however , in the accompanying financial statements , certain funds that have similar characteristics have been combined into fund groups . Accordingly, financial transactions have been recorded by fund group where appropriate . 91 EXHIBIT - H (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1978 The funds used are defined as follows: General Fund. This fund is used to account for resources t at are available for the general financial requirements of the District School Board, the only restrictions being those imposed by law and the budget. Generally, they are resources received to finance the educational programs of the District School Board as a whole. The organizational units financed through this fund are those which are directly concerned with the operation and support of the educational program. Special Revenue Funds. This fund group is used to account for resources that are available for the operation and support of the educational program but are restricted by the donors or other outside agency as to the specific purpose for which they may be expended. The organizational units financed through this fund group are usually the same as those financed through the General Fund. Debt Service Funds . These funds are used to account for the resources which will be used to retire the long-term debt of the District School Board. Capital Projects Funds. These funds are used to account for the resources that are available for the acquisition or construction of physical property to be used for District School Board purposes and resources designated for the major repair or replacement of District School Board property. These funds are restricted by bond resolution limitations and generally can be expended only for projects approved by a State Department of Education survey and project priority list . These projects include the purchase of land, site development , building construction costs , initial furnishings and equipment for new buildings, and major repairs . General Fixed Assets. This self-balancing group of accounts is used to provide a record of fixed assets owned by the District School Board. Fixed assets purchased under lease-purchase agreements are entered in this group after the last payment is made. General Long-Term Debt . This self-balancing group of accounts is used to account for the general long-term debt of the District School Board. 92 EXHIBIT - H (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1978 Employee Leave Accrued Contingent liabilities exist for accrued annual leave. The accrued annual and sick leave will be taken by employees or will become payable upon termination of employment as provided in the Board' s leave policy and contingent upon available funds. Amounts are not reported on the balance sheet for these contingent liabilities . Retirement System Eligible employees of the Board are members of one or more retirement plans administered by the State of Florida , Department of Administration . These plans call for contributions by the employees and/or the Board at a stated percentage of compensation dependent upon the individual plan . 93 EXHIBIT - I MONROE COUNTY DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30, 1978 1. The first-in first-out method is used in pricing the food, nonfood, and small equipment in the food service inventory. The weighted average method is used in pricing the stores and distribution inventory and the gasoline and oil inventory. The last invoice cost is used for pricing the transportation , maintenance , and textbook inventories . 2. Physical plant and equipment are recorded at the date of acquisition at cost or appraised value. Land donated in prior and current periods is recorded at fair market value at the time of donation. Some items of equipment acquired from the Department of General Services, Division of Surplus Property, have title restrictions . Some land and buildings acquired from the United States of America through the Department of Health, Education , and Welfare have deed restrictions . Depreciation on physical plant and equipment is not recorded. 3. The "Reserve for Encumbrances" is an amount that is segregated from the fund balance and represents obligations in the form of purchase orders or contracts which are not liabilities but which are commitments chargeable to future periods when materials or services are received. 4. State funds for current operations were received primarily from the Florida Education Finance Program (FEFP) administered by the State Department of Education. Allocations were made by the State Department of Education based mainly on reports of full- time equivalent students submitted during the current year by the District School Board. The current year' s allocation is subject to adjustment in subsequent years by the State Department of Education for reporting errors and other factors. Any adjustments for allocations received during the current year may be made in subsequent years' allocations. 5. Bonds payable of $ 3,040,000 represent the Board' s portion of bonds sold through the Department of Education on behalf of specific community colleges and district school boards . A portion of the future allocations of the Board's Capital Outlay and Debt Service funds provided by the State from legally obligated moneys for such purposes 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 . Details on these bonds are as follows: 94 EXHIBIT - I (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30, 1978 Original Issues Principal Issue Balance $ 750,000 Bonds Dated June 1 , 1962 $ 210 ,000 2,990,000 Bonds Dated January 1 , 1974 2,830, 000 Total $3, 040, 000 The maturity dates of the bonds range from January 1 , 1979, through January 1 , 1995, and the interest rates vary from 2 .75 percent to 5 .5 percent. Bonds payable of $960, 000 represent special act certificates of indebtedness dated June 1 , 1966, maturing from the present to June 1 , 1991. The original total issue was $1, 500, 000 with interest rates from 5-1/2 percent to 4-5/8 percent. 6. During 1977-78 the Board redeemed $50, 000 of the special act certificates of indebtedness dated June 1 , 1966, prior to their maturity dates at a purchase price of $51, 000. The cost of the early redemption of this debt is shown on the statement of revenues, receipts , expenditures , and transfers for the Debt Service Funds. 7. The amount shown as judgments payable of $20,000 represents the balance of money awarded by the Legislature in Chapter 70-814, Special Acts of 1970. The original amount was $70,000 payable in annual increments of $ 5, 000 each from the General Fund, following an initial payment of $10, 000. 95 EXHIBIT - J MONROE COUNTY DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30, 1978 Ifl..a,.. .1 the terra The School Board of Monroe County, Florida °„,;,x;„• 310 FLEMING STREET P. O. DRAWER 1430 DIRECT KEY WEST. FLORIDA 33040 ° .STRICT NO. 3 LD ADAIR AFFILIATE ARMANDO J. HENRIQUEZ, TELEPHONE CHAIRMAN .U.arx x (305) 226-6523 TICE .l SCHOOL scram ATTORNEY July 27 , 1979 Mr. Ernest Ellison Auditor General State of Florida Tallahassee, Florida 32304 Subject: Preliminary Audit July 1, 1976 to June 30 , 1978 Dear Mr. Ellison: Thank you for the opportunity to comment on the list of preliminary and tentative adverse audit findings which apply to the period July 1, 1976 to June 30, 1978. Attached is a statement of explanation concerning all of the findings and what we propose to do to correct same. Sincerely, A. J. Henriquez AJH/vm Encl. 96 MONROE COUNTY EXHIBIT - J DISTRICT SCHOOL BOARD (Continued) STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30, 1978 Audit PROPOSED CORRECTIVE ACTION COVERING AUDIT REPORT Report JULY 1, 1976 TO DUNE 30 , 1978 Paragraph Number (5) Monroe County School Board has funds deposited in seven (7) banks. As a result, funds are transferred within funds as needed; therefore, it is difficult to make correct estimates at all times. In order to correct this problem we will take measures so that we will have adequate collateral. Also, we will comply with the requirements set forth pursuant to Senate Bill 586. (8) Based upon the motion approved by the Board on May 11, 1976, the Superintendent proceeded to grant the land in question to the Monroe County Mosquito Control District. The motion provided for either a grant or lease and the Superintendent did exercise one of the options. However, for the sake of clarity, the matter will be taken back to the Board for a specific motion to retroactively grant the land to the agency. (16) Budget Amendments were prepared as needed to cover all ex- penditures. As a result of computer breakdown, two budget amendments were not posted. This was discussed and veri- fied with the Auditor. (26) First, let it clearly be stated that it is the intent of the Board that Attorney Hilary U. Albury be considered a regular employee of the Board and, as such, entitled to an annual salary as well as fringe benefits of matching social security contributions, applicable retirement contributions, hospital- ization insurance and life insurance. Traditionally, the School Board has retained an attorney on an annual basis for the purpose of attending board meetings and advising the Board on legal matters as well as handling the necessary legal transactions and activities required between meetings. However, the Board has understood that in matters resulting in litigation in which the Board or its administrative officers were parties, plaintiff or defendant, counsel would be employed for such representation on a per case basis at a fee to be agreed upon between employed coun- sel and the Board. Historically, there has been no written contract or job description although the questions raised by this audit issue may establish the need for such a document. 97 EXHIBIT - J MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30, 1978 Audit Report Paragraph Number (Continued) With the advent of collective bargaining, student expulsion hearings under the APA and the Board self-insuring itself in the area of workmen' s compensation, the scope of the Board' s need for legal services greatly expanded and the Board took action to first retain a special labor law attorney, and later to retain an attorney to handle the Board' s position in student hearings on expulsion. Subse- quently, the Board took action to retain an attorney to re- present the Board in workmen' s compensation claims. In all of these instances the attorneys were employed on the basis of contracted services and were paid a legal fee for ser- vices performed. None of the attorneys in these instances received any of the aforementioned fringe benefits. The Board' s special labor law attorney is Mr. Michael Casey, III of the Miami based firm of Muller, Mintz , Kornreich, Caldwell & Casey. The attorney retained for student expulsion hearings and workmen' s compensation claims is Mr. James Hendrick, who is a member of the firm of Harris, Albury & Morgan. The report cites two payments of legal fees to Mr. Albury's (26) law firm amounting to $507.50 and $340. 00 for the fiscal years 1976-77 and 1977-78, respectively. While these pay- ments were made to the firm, they were for work done by Mr. Hendrick; the $507.50 for services in connection with student expulsion hearings, and the $340. 00 in connection with a workmen' s compensation claim. Neither of the payments to the firm were for work done by Mr. Albury. Other fees were paid directly to Mr. Hendrick for additional work in these two areas totaling $1,195. 00 in 1976-77 and $2,330. 20 for 1977-78. We are advised that neither Mr. Albury or his firm shared in these fees. As a result of your citation of FS 112.313 (3) , future pay- ment of contracted fees with Mr. Hendrick will be paid directly to Mr. Hendrick and not to the firm of Harris, Albury & Morgan. We feel the Board can contract with Mr. Hendrick as an attorney without violating the provisions of FS 112.313. In summary, none of the payments cited were to Mr. Albury for additional services provided by him. The Board does consider him a regular employee and a written job descrip- tion will be developed for the attorney' s position. He is definitely not an independent contractor in his present T. capacity. 98 MONROE COUNTY EXHIBIT - J DISTRICT SCHOOL BOARD (Continued) STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30, 1978 Audit Report Paragraph Number (27) As of August 1, 1979, questionnaires concerning veterans eligibility will be attached to all of the Board's job applications for both professional and non-professional employees. A record-keeping system will be instituted recording the names of applicants who indicate an eligibility for veterans preference and noting the dispensation of their application relative to the preference in appointment. (29) Encumbering funds for the purchase of vendor-delivered items; i.e. , frozen foods, produce, is not practical due to the number of these items which are shorted on the delivery. Due to the nature of these items, the re-order must be immediate from another vendor. Many items are also deliv- ered on a "catch weight" basis; i.e. , a roast ordered at 65 pounds can be delivered several pounds over or under the requested weight due to the conformation of the animal. Due to the above reasons, it is not practical to encumber all funds for the purchase of these items. The issuance of pur- chase orders for these items is also not practical due to the same factors cited above. (33) On September 29, 1972 a memorandum (see Attachment A) from the Superintendent was sent to all principals of schools with auto mechanics programs relative to the collection of fees for services and parts. This memorandum included a paragraph stating: "All monies derived from the above services and sale of parts shall be deposited in funds ear- marked for the operation of the vocational- technical program at the school center where it is earned. " It was the intent of this memorandum that all money for parts and services would be deposited in a school center account and would be paid for from that account. As a result of changes in the administrative and auto me- chanics personnel at Key West High School, the process drifted into a situation where numerous purchases were made of domestic and foreign auto parts for repair purposes out of the District's general fund as expenditures for "teaching supplies" which they were not. The problem was compounded when the money derived from the sale of the parts were de- posited in the internal funds of the schools. 99 EXHIBIT - J MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30, 1978 Audit Report Paragraph Number (Continued) Two steps are being taken to correct this situation: 1. The general FTE fund of the District will be reimbursed by the internal fund of the school involved for the amount of all the repair parts purchased for resale. (33) 2. By reestablishing and circulating written Accounting, Budgetary and Purchasing Procedures (see Attachment B) which were discussed with the appropriate principals and auto mechanics personnel in August of 1978, we are monitoring this situation to avoid a repition of the problem. (34) As stated in these Findings, the Superintendent took admin- istrative action on behalf of the Board on the recommenda- tion of the Supervisor of Maintenance, whereby, upon in- spection of the eight (8) mobile classrooms, he stated that repairs to the classrooms would cost more than the $2400.00 security deposits. In order that this be done and presented officially to the Board, the Superintendent will place this on the agenda for the August 13, 1979 meeting for Board approval. (35) Since it is interpreted that the persons named need to file a financial disclosure statement as per FS 112. 3145, the proper forms are being distributed to all named employees and will be filed as required. (37-38) Based on Audit Report No. 9081, the School Board ceased pay- ing board member from District 5 for attending board meet- ings, which was travel from her home in Marathon (50 miles from Key West) to Key West. Due to misinterpretation, the Board continued to pay for travel from Marathon to Key West for attendance to activities other than school board meet- ings. The Board presently reimburses for these specific trips the miles traveled between the Administration Building and wherever the activity is being held. (39) At the request of the Superintendent, the School Board Attorney chartered an airplane flight from Key West to Marathon in order to meet with the Superintendent and the representative from Watson and Company, architects for the School Board, and the representative from the bonding company. The attorney was to meet the others in Marathon, thence Watson and Company would fly them all to Key Largo. The meeting was called with reference to the construction of the Key Largo Cafeteria which, at this point, was in the hands of the bonding company. Due to the time involved, the distance to be traveled, and the importance of the attorney's presence 100 MONROE COUNTY EXHIBIT - J DISTRICT SCHOOL BOARD (Continued) STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30, 1978 Audit Report Paragraph Number (Continued) at this meeting, the Superintendent felt that the cost of (39) $40.00 was justified considering the short notice to the Il Board's attorney regarding the necessity of his presence at said meeting. (40-41) Prior to previous procedures, each employee receiving a monthly travel allowance is required to submit a typical monthly statement showing the monthly travel. Based on verification of the mileage, the travel warrants are re- leased. If the miles shown are not enough miles to support the monthly allowance, the warrant will be withheld and issued from the actual number of miles shown. (42) In those specific cases where actual monthly miles traveled are being required, the employees will not receive a set monthly allowance but will be reimbursed for actual miles traveled monthly. (43) On one of the occasions cited, June 8 , 1977, Director of Exceptional Child Education, William L. Osterhoudt, a licensed pilot, rented a plane in order to transport two visiting program auditors and a member of his staff to schools in the Marathon and Key Largo areas. This was done in order to accomplish visits to five schools ranging up to 105 miles from Key West within one day' s time rather than require two days driving to the schools for said visits. This seems logical since it accomplished in one day what would have taken two days driving (saving a day' s work for two District employees, time being money) and also elimin- ated the need for the two District employees to have to stay overnight on the Keys (at $35 a day per diem each) . On the second occasion, November 16, 1977 , Mr. Osterhoudt rented a plane in order to participate in a hastily-called meeting in Key Largo relative to some problems in the ex- ceptional child program in the Upper Keys and still be back in Key West in time to participate in some exceptional child staffings previously scheduled in Key West. This enabled him to be present for both activities. Thus in the first instance, Mr. Osterhoudt' s decision to fly by rental plane resulted in saving a day' s work for two employees plus a minimum of $75 in per diem for overnight accommodations and meals. In the second instance, it allowed him to provide services in two different parts of the District when a semi-emergency situation occurred. In both instances it was to the District's advantage to have Mr. Osterhoudt fly. 101 EXHIBIT - J MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30, 1978 Audit Report Paragraph Number (Continued) We approved both rentals from the District level, believing that in both instances the decision to fly made maximum use of our personnel and reflected a good management practice (43) in making an expenditure which saved employee time and per diem expenses. It did not seem appropriate to ask Mr. Osterhoudt to pay the cost of the air transportation fee as a result of incurring an expense which was advantageous to the District. (53) Prenumbered warrants were not used for those funds which require not more than two checks a year be written, such as , payment of bonds or interest. We are in the process of con- verting to a new computer at which time all warrants will be prenumbered. (54) Financial transactions are batched and processed for the Computer Room by personnel in the Finance Department. Al- though all transactions are not signed or approved by the director in charge, all entries and transactions are verified when returned to Finance from the Computer Room. The person verifying these entries is one other than any of those pro- cessing the batches. (55) In addition to the use of prenumbered receipts for the collection of fees for adult education courses and sale of books, a reconciliation will be made between the amounts collected and the receipts returned as issued and voided effective 1979-80 school year. (56) The fee amounts to be charged for adult education classes will be approved by the Board for the 1979-80 school year. (57) As stated in Audit Report No. 9081, the new Administration Building has not been completed as originally planned, there- fore we have not been able to provide the proper storage for personnel records. However, we will do so as soon as the move is made. We repeat that the reason for not providing the proper storage and adhering to Audit Findings is based on the recommendation originally made by the Supervisor of Maintenance which is, that due to the construction and condition of the second floor of the Administration Building, the floor will not support the weight load of additional fireproof cabinets. 102 MONROE COUNTY EXHIBIT - J DISTRICT SCHOOL BOARD (Continued) STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30, 1978 Audit Report Paragraph Number (58) Personnel will be trained in operation of the cash registers and proper control of managers keys and program keys will be established for school fiscal year 1980. (59) The school office will furnish an authorized list of free and reduced meal approved students monthly to the cafeteria. Additions and deletions to this roster will be furnished to the cafeteria daily on a form to be developed. School food personnel will receive training in proper proce- dure in the pre-school workshop to be held August 20-21-22 and internal audit of procedures will be performed period- ically during school fiscal year 1980. Prenumbered receipts will be issued for the prepaid collec- tions for school fiscal year 1980. The cash registers not conforming to standards will be identi- fied and replaced with machines with adequate control features. Cash registers will be located at the three schools not pre- sently having machines and through relocation or purchase of equipment. (60) Change funds will be established at each cafeteria. A check for the appropriate change fund amount will be issued at the beginning of the school year and the money deposited at the end of the school year. (61) Salary schedules and policies are being revised to identify the individuals to receive meals as part of their compensa- tion. All others will be required to pay for their meals. (62-67) The following comments relate to tangible personal property (ref: beginning with the third paragraph on page 8 and con- tinuing through page 9) . The District has been working towards improving its property control records, procedures and controls although no mention was made of property control in the 1974-75 and 1975-76 audits. The Superintendent and the team leader of the business manage- ment complex are formally meeting this summer with principals and directors to discuss property control procedures. Partic- ular emphasis will be made on schools and department conduct- ing their own periodic spot-check inventories of high-cost items such as shop, typing and audio-visual equipment. Updated handbooks will be distributed to key personnel out- lining stricter steps especially in the areas of receiving new property and maintaining current records at the center level. 103 EXHIBIT - J MONROE COUNTY (ContinueL) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30, 1978 Audit Report Paragraph Number (Continued) Because of accessibility problems (e.g. , limited keys to storage areas) brought on by overall security concerns in the school system, certain items were not readily available for auditors to observe during their initial visits to various locations. It had been the understanding of Board employees that auditors would be returning to observe some pending items but what ultimately occurred was an auditor getting verbal updates on the disposition of items. Thus, certain items were subsequently listed on the preliminary audit as unlocateable by Board personnel when they were pending up-to-date routine observations. Recently observed (in 1979) items listed in the preliminary audit as not seen by auditors include cleaner No. 34198, dictaphone No. 33659, grinder No. 34187, jack No. 34876, projector No. 39919 and steam cleaner No. 60533. Unfortunately, occasions do arise where items beyond econo- mical repair are disposed of without first being so approved by the Board. The problem is basically one of miscommunica- tion rather than arbitrary action. The Marathon High piano No. 6274 was over 20 years old and property control has (62-67) memoranda from several Marathon High employees confirming its having been in poor condition. Other missing items may well fall in this category--disposed of prior to Board action-- in view of equipment age and condition. We have learned that welding outfits are not practical to tag as an individual component of an outfit may become unecono- mical to repair and reamining components are used with other outfits as repair parts. Items observed at the same center on at least the past two consecutive inventories though charged elsewhere will be brought to the attention of appropriate principals and directors for following through with formal transfers. Following up the recommendation in the preliminary audit, the District will commence with the marking of vocational shop items which have been on school grounds for considerable period yet for which proof of Board ownership is not definite. Additional help is being made available in property control to assist in keeping records more timely. Regarding the specified slide projector (No. 33007) , it was approved by the Board for removal from records December 12, 1978. 104 MONROR COUNTY EXHIBIT - J DISTRICT SCHOOL BOARD (Continued) STATEMENT FROM AUDITED OFFICIAL For Period July 1, 1976 to June 30 , 1978 Audit Report Paragraph Number (68) Section E (Shop Jobs) of the document Monroe Vocational- Technical Schools Accounting, Budgetary and Purchasing Procedures contains existing administrative guidelines for the repair of privately owned automobiles and small engines by Vo-Tech classes. This section will be rewritten into a policy statement including charges for fees and cost of repair parts and will be adopted by the Board as policy during 1979. (69) The written guidelines now in existence for the use of and charges to schools for school buses on school activity trips will be worded as a policy statement and adopted by the Board. 105