Report No. 9220, Clerk :322U
STATE OF FLORIDA
OFFICE OP THE AUDITOR GENERAL
d4"1 ar4
w°v °�
y sir �
0 b
a
4000..1'V
*** MONROE COUNTY ***
CLERK OF THE CIRCUIT COURT
For the Period
July 1 , 1975 to July 31 , 1977
9220
STATE OF FLORIDA
OFFICE OF THE AUDITOR GENERAL
Report on Audit
of the Accounts of the
MONROE COUNTY
CLERK OF THE CIRCUIT COURT
For the Period
July 1 , 1975 to July 31, 1977
Dated: March 22 , 1978
W" : q' STATE OF FLORIDA
��N OFFICE OF THE AUDITOR GENERAL
-,NS
Tallahassee, Florida
ERNEST ELLISON.C.R A.
AuoiTcR GENERA March 22, 1978
The Legislative Auditing Committee
of the Legislature
and the
Governor of Florida
Sirs:
Pursuant to the provisions of Section 11.45, Florida
Statutes , I have directed that an audit be made of the accounts and
records of the
HONORABLE RALPH W. WHITE
MONROE COUNTY
CLERK OF THE CIRCUIT COURT
For the Period Beginning July 1, 1975,
and Ending July 31 , 1977,
Par .
No.
and present this report thereon.
(1) The objectives of this audit were: (1) to express an
opinion on the financial statements for the period ending July 31 ,
1977 , and (2) to report violations of law and other matters required
by Section 11 .45 (6) (c) , Florida Statutes, that may be determined by
audit tests.
(2) The Clerk ' s accounts as Clerk of the Board of County
Commissioners ex officio are audited in connection with the audit of
the accounts of that Board and therefore are not covered in this
report.
(3) Pursuant to Article V, Section 16 , of the Constitution of
the State of Florida , as adopted in 1972, and Section 34.031 , Florida
Statutes , the Clerk of the Circuit Court was also the Clerk of the
County Court.
1
Par .
No.
SCOPE AND OPINION
(4) I have examined the financial statements of the Trust and
Agency Funds of the Monroe County Clerk of the Circuit Court for the
period ending July 31 , 1977. My examination was made in accordance
with generally accepted auditing standards and, accordingly, included
such tests of the accounting records and such other auditing
procedures as I considered necessary in the circumstances.
(5) In my opinion, the accompanying financial statements present
fairly the financial position of the Trust and Agency Funds of the
Monroe County Clerk of the Circuit Court at July 31 , 1977 , and the
cash receipts and disbursements for the 25-month period ending July
31 , 1977 , in conformity with generally accepted accounting principles
applied on a consistent basis.
FINANCIAL POSITION
(6) The financial position of the Trust and Agency Funds at July
31, 1977, is shown on exhibit A.
FINANCIAL OPERATIONS
(7) A statement of cash receipts and disbursements is presented
on exhibit B.
(8) All payrolls and expenditures for the operation of the
Clerk ' s Office were administered by the Board of County Commissioners.
These expenses are audited in connection with the audit of the Board.
A summary of budgeted and actual expenditures of the Clerk' s Office as
abstracted from the Board ' s records is as follows:
2
wN - - - -
0)
aw w w 44 w w „
co a
co
co
us m co a
_ _ _
el
_ _
° a w wDa w w w w
co as co CO 0
CO Lo us
co a
co 0
a I co a a coco _ Gcn Goo .0 co o to
co OS a
NN N m 0
— — - - — — — — — — - - — —
co• co co a coia al co o)
na w w w a w (9 w
oe0CM
- • � . A mww A 0)
N _ C -, -
la Os
+• U U NV
o O U Ca N U
A ° a =a > a T.
° � a
O AA 87, AA oofA
w a u ^ o h b + o 0 d Y 6 0
u 6 £ O V f u C O U f rvti 1 O U F
U-I
U U F
3
Par .
No.
(9) Fees collected were generally in accordance with applicable
laws. In addition to the standard fees provided in the Florida
Statutes, the Clerk collected additional filing fees for the county' s
Law Library Fund and Legal Aid Fund as authorized by county ordinances
and Sections 28 .241 and 34.041 , Florida Statutes.
(10) In addition to fines and forfeitures, the Clerk collected
court costs of $1 assessed for each conviction for a violation of
State penal or criminal statute or county ordinance. These
collections were properly remitted to the State pursuant to Section
943 .25 (3) , Florida Statutes.
(11) Amounts collected for the county and other governmental
units were remitted as required by applicable laws with the following
exceptions:
1 . Section 219 .07 , Florida Statutes, as amended by Chapter
76-224 , Laws of Florida, effective June 23, 1976 , requires
that all money collected by an officer be distributed by him
to the appropriate agencies or persons not later than seven
working days from the close of the week in which the officer
received the funds unless the remittance requirements are
contained in another law or court order . Circuit court fees
were remitted monthly during the entire audit period. I
recommend that the Clerk remit Circuit Court fees in
accordance with Section 219.07, Florida Statutes, as amended
by Chapter 76-224 , Laws of Florida.
2 . Sections 197 .186 and 197.291 (2) , Florida Statutes, provide
that excess proceeds from tax deed sales that are unclaimed
shall , upon expiration of 90 days from the receipt of the
money, be remitted on the first day of the following quarter
to the Board of County Commissioners. Several instances
were noted where remittances were not made on the first day
of the quarter . These remittances were made from one to
seven months later than the required date. At July 31 ,
1977 , excess proceeds totaling $790 .02 that should have been
remitted to the Board on July 1, 1977 , were still on hand.
This amount was remitted to the Board by checks dated on or
before September 1 , 1977 . I recommend that procedures be
established to assure that excess proceeds from tax deed
sales be remitted to the Board on a timely basis as required
by law.
3. The amounts collected for legal aid were remitted directly to
the Monroe County Legal Aid Society. Monroe County
Ordinance No. 22-1976 requires that the Clerk remit the
amounts collected for legal aid to the Board of County
Commissioners to be administered in a fund known as the
Legal Aid Fund . This ordinance requires that these moneys
be budgeted and expended by the Board either by payments
made to, or on behalf of, a nonprofit Florida corporation to
4
Par .
No.
be created and established to provide legal aid to the
indigent and needy of Monroe County. I recommend that the
Clerk remit all amounts collected for legal aid to the Board
of County Commissioners as required by Ordinance No. 22-
1976 .
(12) On July 7 , 1975 , a central governmental depository was
created pursuant to Section 61 .181 , Florida Statutes, to receive,
record, and disburse all support, alimony, or maintenance payments.
Fees charged were based on a local administrative order . Payments
were receipted for by prenumbered or validated receipts, deposited,
and subsequently disbursed by prenumbered checks to required parties.
Subsidiary records were maintained for each account. For some older
accounts , checks received and made payable to the recipient were
logged by Clerk' s employees, and remitted to the required parties.
(13) Included in the court registry deposits shown on exhibit A
is approximately $6 ,600 in accounts which had been on deposit for five
to 24 years since the date of the last transaction. Section 43.19 ,
Florida Statutes, provides that a judge of the court shall direct that
all amounts adjudicated and not in dispute for five or more years be
deposited with the State Treasurer to the credit of the State School
Trust Fund . I recommend that a review of each account within the
court registry fund be made periodically and that the Clerk request
one of the judges to direct that those undisputed accounts that have
been on deposit for five or more years be deposited with the State
Treasurer as required by law.
(14) Insurance for the Clerk' s Office provided by the Board of
County Commissioners included workmen' s compensation, moneys and
securities, employees' honesty blanket bond , and the Clerk' s public
official bond.
(15) The Clerk' s compensation was governed by Section 145.051 ,
Florida Statutes, and was underpaid $129 by the Board of County
Commissioners .
RECORDS AND INTERNAL CONTROL
Records
(16) Records of cash receipts and disbursements complied with the
provisions of Chapter 219 , Florida Statutes, and the rules issued
pursuant thereto by the Department of Banking and Finance.
Prenumbered or validated receipts were written for all collections.
(17) Monthly reports of bank balances were submitted to the State
Comptroller as required by Section 136 .02 , Florida Statutes.
5
Par .
No.
(18) Evidence in court cases was marked with the court case
number and adequately controlled . Records were kept showing the
evidence in each case .
Internal Control
(19) Internal control was generally adequate although some
improvements were needed as follows:
1 . Disbursement checks for the Key West bank account should
be prenumbered . In his response dated September 1 ,
1976 , to similar comments contained in audit report No.
8828 , paragraph 28, the Clerk stated that all checks
were now prenumbered. As of November 9 , 1977, all
checks were prenumbered except those for the Key West
bank account.
2. Although validation machines were used at the Marathon
office beginning in June 1976 , the validation tapes were
not available for 15 of the 17 days tested for the
period June 7 , 1976 , to April 11, 1977. Procedures
should be implemented to assure that all validation
machine tapes are preserved for audit as required by
Section 3A-50 .04 (1) (g) , Rules of the Department of
Banking and Finance.
3 . More than one employee recorded collections on the
validating machine and used the same cash drawer and
change fund at the Key West recording section. For
better control , each employee accepting collections
should have a separate change fund and validating
machine identification key. In the Clerk's response,
dated September 1 , 1976 , to similar comments contained
in audit report No. 8828 , paragraph 28 , he stated that ,
"One individual in each location has been assigned the
responsibility of recording daily transactions on the
registers and making change. No other employees are
allowed access to the change fund. " However, as of
November 9 , 1977 , more than one person continued to
record transactions and have access to the change fund
at the Key West recording section.
AGENT FOR THE BOARD OF TRUSTEES OF
THE INTERNAL IMPROVEMENT TRUST FUND
(20) There were no transactions of record by the Clerk as agent
for the Board of Trustees of the Internal Improvement Trust Fund .
6
Par .
No.
STATEMENT FROM AUDITED OFFICIAL
(21) In accordance with the provisions of Section 11.45 (6) (d) ,
Florida Statutes, a list of audit findings was submitted to the Clerk.
His response to the list of findings is shown on exhibit D.
EXHIBITS
The following exhibits are attached to and form a part of
this report:
EXHIBIT - A Trust and Agency Funds - Balance Sheet.
EXHIBIT - B Trust and Agency Funds - Statement of Cash Receipts and
Disbursements .
EXHIBIT - C Notes to Financial Statements .
EXHIBIT - D Statement from Audited Official .
Respectfully submitted ,
(Signed) Ernest Ellison, C.P.A.
Auditor General
Audit made by:
(Signed) Willard G. Hale
7
EXHIBIT - A MONROE COUNTY
CLERK OF THE CIRCUIT COURT
TRUST AND AGENCY FUNDS
BALANCE SHEET
July 31, 1977
ASSETS
Cash:
Cash on Hand $ 500.00
Cash in Banks 260,767.43
Certificates of Deposit 45,336.53
Total Cash $306,603.96
Accounts Receivable 962.00
Due from Clerk 377.15
Documentary and Surtax Stamps on Hand 16,928.45
TOTAL ASSETS $324,871.56
LIABILITIES
Due to Board of County Commissioners:
Fines, Fees, and Interest Collected but
not Remitted $ 43,308.26
Advance for Clerk's Change Funds 250.00
Total Due to Board of County Commissioners $ 43,558.26
Due to State:
Documentary and Surtax Stamps Consigned $ 48,000.00
Jury and Witness Payrolls Advanced $30,000.00
Less, Jury and Witness Payrolls Paid 17,843.00 12,157.00
Intangible Taxes Collected but not Remitted 24,352.00
Other Amounts Collected but not Remitted 5,669.05
Total Due to State $ 90,178.05
Due to Municipalities for Amounts Collected but
not Remitted $ 5,727.00
Other:
Court Registry Deposits $164,284.03
Cash Bond Funds 17,068.67
Tax Deed Deposits 1,618.53
Unremitted Support and Alimony Money 1,615.30
Unclaimed Funds 501.30
Other Liabilities 320.42
Total Other $185,408.25
TOTAL LIABILITIES $324,871.56
See accompanying notes to financial statements.
8
MONROE COUNTY EXHIBIT - B
CLERK OF THE CIRCUIT COURT
TRUST AND AGENCY FUNDS
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
July 1, 1975 to July 31, 1977
Cash Balances, July 1, 1975 $ 187,755.17
Receipts:
Revenue for County:
Fines, Court Costs, and Estreated Bonds $ 513,325.74
Local Police Training 14,396.00
Recording Fees 247,434.00
Appeals Filing Fees 5,817.45
Probate Filing Fees 25,834.00
Other Filing Fees 69,447.00
Other Fees 12,136.16
Certified and Other Copies 32,618.82
Law Library 23,167.50
Legal Aid 7,551.00
Compensation as Bookkeeper and Auditor of Card Sound Bridge 10,000.00
Commission on Documentary and Surtax Stamp Sales 7,598.02
Registry of the Court Fees and Interest 5,869.70
Marriage Licenses 3,190.00
Total Revenue for County $ 978,385.39
Revenue for State:
Documentary and Surtax Stamp Sales $1,498,353.00
Intangible Tax Collections 394,139.90
State Police Academy 15,750.00
Additional Filing Fee - Circuit Court Cases 4,968.50
Marriage Licenses 4,785.00
Good Drivers' Incentive Fund 4,190.00
Department of Health and Rehabilitative Services 377.05
Total Revenue for State $1,922,563.45
Revenue for Municipalities:
Fines, Court Costs, and Estreated Bonds $ 55,955.00
Local Police Training 1,208.00
Total Revenue for Municipalities $ 57,163.00
9
EXHIBIT - B MONROE COUNTY
(Continued) CLERK OF THE CIRCUIT COURT
TRUST AND AGENCY FUNDS
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
July 1, 1975 to July 31, 1977
Receipts (Continued) :
Other Receipts:
Court Registry Deposits $ 697.739.02
Uniform Reciprocal Support 211,016.83
Jury and Witness Payroll Advances 165,000.00
Cash Bonds Received 38,870.67
Candidates Filing Fees 13,373.60
Tax Deed Sales 7,760.64
Refunds 3,804.74
Other 167.05
Total Other Receipts $1,137,732.55
Total Receipts $4,095,844.39
Total Available $4,283,599.56
Disbursements:
Revenue to Governmental Agencies:
County $ 963,260.18
State 1,904,277.74
Municipalities 51,743.00
Total Revenue to Governmental Agencies: $2,919,280.92
Other Disbursements:
Court Registry $ 595,693.37
Uniform Reciprocal Support 209,890.13
Jury and Witness Payrolls Paid 155,385.28
Jury and Witness Payroll Advances Refunded to State 20,983.68
Cash Bonds Refunded 34,059.69
Candidates Filing Fees 13,373.60
Tax Deed Sales 17,695.61
Monroe County Legal Aid Society 6,884.00
Other 3,749.32
Total Other Disbursements $1,057,714.68
Total Disbursements $3,976,995.60
Cash Balances, July 31, 1977 $ 306,603.96
See accompanying notes to financial statements.
10
EXHIBIT - C
MONROE COUNTY
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
July 1 , 1975 to July 31, 1977
1 . Summary of Significant Accounting Policies:
The significant accounting policies followed by the Monroe
County Clerk of the Circuit Court are described below to enhance the
usefulness of the financial statements to the reader :
Reporting Entity. The Office of the Clerk of the
Circuit Court is an elected office created pursuant to
Article V, Section 16, of the Constitution of the State of
Florida. The Clerk' s Office operates under Chapter 28 ,
Florida Statutes, and various other chapters. The Clerk,
pursuant to Article VIII , Section 1 , of the Constitution of
the State of Florida , and Section 125.17 , Florida Statutes,
is ex officio Clerk of the Board of County Commissioners,
auditor , recorder , and custodian of all county funds. The
operations of the Clerk as ex officio Clerk to the Board are
covered in a separate report of the Board.
The Board of County Commissioners , pursuant to Section
145 .022, Florida Statutes , and Board Resolution No. 129-1974 ,
guaranteed and appropriated the salary of the Clerk as
specified in Chapter 145 , Florida Statutes , and provided for
all fees collected by the Clerk to be turned over to the
Board. Under this budget system, the Board pays the expenses
for the Clerk' s operations.
Fund Accounting . In order to ensure observance of
limitations and restrictions placed on the use of the
resources available to the Clerk, the financial records and
accounts of the Clerk 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 .
The financial transactions of the Clerk' s Office have
been recorded and reported as Trust and Agency Funds. These
funds are used to account for assets held by a governmental
unit as a trustee or agent for individuals, private
organizations , and other governmental units . Since the
transactions did not create or make changes to a fund
balance, a balance sheet and a statement of cash receipts and
disbursements are the only required financial statements .
11
EXHIBIT - C
(Continued)
MONROE COUNTY
CLERK OF THE CIRCUIT COURT
NOTES TO FINANCIAL STATEMENTS
July 1 , 1975 to July 31 , 1977
Basis of Accounting. The Clerk' s financial records were
maintained on the accrual basis of accounting. For reporting
purposes, however , amounts were accumulated to show a
statement of cash receipts and disbursements.
2 . The amount shown on the balance sheet as due from Clerk represents the
Clerk' s personal liability for checks which were returned by the banks
on which they were drawn due to insufficient funds or similar reasons .
These checks had originally been received as payments of fines or fees
related to the Clerk ' s duties as Clerk of the Circuit Court. Section
28 .243 , Florida Statutes, provides that such checks are the Clerk' s
personal liability unless, after diligent efforts to collect on the
returned checks, the Clerk forwards the returned checks for
prosecution by the State attorneys of the circuits where the checks
were drawn.
12
MONROE COUNTY EXHIBIT - D
CLERK OF THE CIRCUIT COURT
STATEMENT FROM AUDITED OFFICIAL
July 1, 1975 to July 31, 1977
O i
4.
n
taIph 'P4 . Wilhite
CLERK OF THE CIRCUIT COURT
16TH JUDICIAL CIRCUIT
MONROE COUNTY
KEY WEST, FLORIDA 33040
TEL (306) 294.4641
RECORDER COUNTY CLERK
COLLECTOR OF DELINQUENT TAXES COUNTY AUDITOR
March 13, 1978
Honorable Ernest Ellison
Auditor General
State of Florida
Office of the Auditor General
Tallahassee, Florida 32304
Dear Sir:
Pursuant to your letter dated February 24 , 1978 and received
in this office on March 3, 1978, I am enclosing herewith our
responses to the preliminary and tentative adverse audit findings
which may be included in the audit of the Clerk of the Circuit
Court, Monroe County, for the period of July 1, 1975 to July 31,
1977.
If you have any questions concerning my responses, or if I can
furnish any additional information, please do not hesitate to
contact me.
Very trulyT)yo rat.
— R 1ph�W. White` �_
C etk of Circuit Court
and ex officio Clerk
Board of County Commissioners
Monroe County
RWW/DLK/vp
cc: File
Enclosure
13
EXHIBIT - D MONROE COUNTY
(Continued) CLERK OF THE CIRCUIT COURT
STATEMENT FROM AUDITED OFFICIAL
July 1, 1975 to July 31, 1977
Audit
Report
Paragraph
Number 1
(11) Pursuant to Section 195.022 Florida Statutes and Monroe County
Resolution No. 12-1974 I have elected to become a Budget Officer
and turn over all fees collected by me to the Board of County Com-
missioners on a monthly basis. The only fees collected by my
office that are not subject to other statutory provisions, and
therefore subject to the provisions of Section 219.07 of the Florida
Statutes, are Circuit Court filing fees. These fees are currently
averaging less than $2,000.00 per month.
I feel that it would be impractical to selectively remit only
Circuit Court filing fees pursuant to Section 219.07 while remit-
ting all other fees collected by my office on a monthly basis as
I have already described.
I intend to ask the Florida Association of Court Clerks to seek
legislative clarification of the intent of Section 219 .07, Florida
Statutes.
2
We have established procedures to insure compliance in the future
with Section 197.186 and 197.291 (2) concerning the remittance
of unclaimed excess proceeds from tax deed sales.
3
The Monroe County Budget for the year 1977-78 has been amended
to reflect the receipt of filing fees for Legal Aid levied pursuant
to Ordinance No. 22-1976 from the Clerk and an appropriation item
for payments to the Monroe County Legal Aid Society in accordance
with terms of an existing contract.
14
MONROE COUNTY EXHIBIT - D
CLERK OF THE CIRCUIT COURT (Continued)
STATEMENT FROM AUDITED OFFICIAL
July 1, 1975 to July 31, 1977
Audit
Report
Paragraph
Number 4
(13) I am currently conducting a review and inventory of all registry
of the court accounts to determine those which are subject to the
provisions of Section 43.19 Florida Statutes.
I will forward this inventory to the Chief Judge of the Circuit
Court for his information and disposition.
5
(15) This underpayment was disbursed to me by Monroe County Payroll
Warrant #20868 dated 12-30-77.
6
(19) I am in possession of a substantial number of unnumbered checks
on the Office Account at Key West State Bank. I have asked a local
printer to number my supply and execute an appropriate affidavit.
7
The instances of missing validation tapes during the period
June 7, 1976 to April 11 , 1977 were a result of misunderstanding
and confusion on the part of the Clerk Supervisor at the Marathon
Clerk's Office. In fact a test of subsequent periods reveals that
all tapes are forwarded to the Key West Office with the daily
reports and are available for audit.
8
The validating register in the Key West recording section has
been equipped with an additional cash drawer and two clerks have
been assigned responsibility for making change from separate cash
drawers.
15