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Home My WebLink AboutFiscal Year 2025 2-A 2A Monroe County Clerk of the Circuit Court i i tatements and Independent Auditor's Report September 30, 2025 PURVIs GiZAY C E:R ]NI F�II E"II') F!'�u II3 L IVC A C C 0 U IlRwll 'fl,Pq � S K8C]NRQE COUNTY, FLORIDA CLERK C]F THE CIRCUIT COURT FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 8EPTEK8BER 30\2026 TABLE C]FCONTENTS IndependentAuditor's Report..................................................................................................................1'3 Financial Statements Balance Sheet—Government Funds..........................................................................................................4 Statement of Revenues, Expenditures and Changes in Fund Balance—Governmental Funds..................................................................................5 Statement of Fiduciary Net Position CustodialFund........................................................................................................................................6 Statement of Changes in Fiduciary Net Position CustodialFund...........................................................................................................................................7 Notes to Financial Statements..............................................................................................................8'15 Required Supplementary Information (Unau6ite6) Schedule of Revenues and Expenditures Budget to Actual—General Fund .........................................................................................................16 Schedule of Revenues and Expenditures Budget to Actual—Special Revenue Court Related Fund.....................................................................17 Schedule of Revenues and Expenditures Budget to Actual—Special Revenue Records Modernization Fund.....................................................18 Other Reports Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based onan Audit of Financial Statements Performed in Accordance with Government Auditing Standards.....................................................................19'ZU Independent Accountant's Report on Compliance with Florida Statutes Sections Z18.415, 28.35, Z8.36, and 61.181, Local Government Investment Policies................................................................................................Z1 ManagementLetter............................................................................................................................ZZ'Z3 Management Letter Response ................................................................................................................Z4 U RV Is G 111 AY INDEPENDENT AUDITOR'S REPORT To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Clerk of the Circuit Court(the Clerk)as of and for the year ended September 30, 2025, and the related notes to the financial statements,which collectively comprise the Clerk's financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Clerk as of September 30, 2025, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Clerk and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter-Correction of an Error As discussed in Note 12 to the financial statements, the beginning net position of the Custodial Fund has been restated to correct a misstatement in the previously issued financial statements. Our opinions are not modified with respect to this matter. Emphasis of Matter-Incomplete Presentation As discussed in Note 1,the accompanying financial statements of the Clerk were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General. They do not purport to, and do not, present fairly the financial position of Monroe County, Florida as of September 30, 2025, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. CERTIFIECD PUBLIC ACCOUNTANTS purrvisgray.corn Nlonbeu°�of Aromzu-kw) Florida of �,nOGtjld I°GaV,hc AxgQxmt0or s 1 To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida INDEPENDENT AUDITOR'S REPORT Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Clerk's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we ■ Exercise professional judgment and maintain professional skepticism throughout the audit. ■ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. ■ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control. Accordingly, no such opinion is expressed. ■ Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. ■ Conclude whether, in our judgment,there are conditions or events, considered in the aggregate,that raise substantial doubt about the Clerk's ability to continue as a going concern fora reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 2 To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida INDEPENDENT AUDITOR'S REPORT Required Supplementary Information Accounting principles generally accepted in the United States of America require that budgetary comparison schedules be presented to supplement the financial statements. Such information is the responsibility of management and, although not a part of the financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information,although not a part of the financial statements,is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. Our opinions on the financial statements are not affected by the missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 26, 2026, on our consideration of the Clerk's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the Clerk's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk's internal control over financial reporting and compliance. February 26, 2026 Sarasota, Florida 3 FINANCIAL STATEMENTS MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2025 Major Funds Court Records General Related Modernization Fund Fund Fund Totals ASSETS Assets Cash and Cash Equivalents $ 1,442,414 $ 2,696,925 $ 3,658,521 $ 7,797,860 Due from Other Governmental Agencies 59 37 - 96 Due from Board of County Commissioners 2,269 757 - 3,026 Due from Others - 480 - 480 Due from Other Funds 98,039 765 - 98,804 Total Assets 1,542,781 2,698,964 3,658,521 7,900,266 LIABILITIES AND FUND BALANCES Liabilities Accounts Payable and Accrued Liabilities $ 157,412 $ 30,986 $ 8,663 197,061 Due to Other Governmental Agencies - 924,302 - 924,302 Due to Board of County Commissioners 1,384,235 1,646,814 96 3,031,145 Due to Other Funds 765 89,847 8,192 98,804 Total liabilities 1,542,412 2,691,949 16,951 4,251,312 Deferred Inflow of Resources Unavailable Revenue 369 7,015 - 7,384 Fund Balances Restricted - - 3,641,570 3,641,570 Total Liabilities,Deferred Inflow of Resources, and Fund Balances $ 1,542,781 $ 2,698,964 $ 3,658,521 $ 7,900,266 See accompanying notes. 4 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 2025 Major Funds Court Records General Related Modernization Fund Fund Fund Totals Revenues Intergovernmental-Other $ 3,444 $ 1,727,449 $ - $ 1,730,893 Intergovernmental- Board of County Commissioners 7,044,800 3,102,316 - 10,147,116 Charges for Services 772,793 1,122,045 384,794 2,279,632 Fines and Forfeitures - 2,385,079 - 2,385,079 Interest Income 82,439 72,175 185,241 339,855 Miscellaneous 4,595 983 - 5,578 Total Revenues 7,908,071 8,410,047 570,035 16,888,153 Expenditures Current: General Government: Salaries and Benefits 4,089,457 - - 4,089,457 Operating 1,095,195 - - 1,095,195 Court Related: Salaries and Benefits - 5,323,462 387,844 5,711,306 Operating - 520,267 29,406 549,673 Capital Outlay 6,854,734 16,960 - 6,871,694 Debt Service: Principal 558,985 - - 558,985 Interest 80,163 - - 80,163 Total Expenditures 12,678,534 5,860,689 417,250 18,956,473 Excess of Revenues Over (Under)Expenditures (4,770,463) 2,549,358 152,785 (2,068,320) Other Financing Sources(Uses) Lease and SBITA Liabilities Issued 6,567,777 - - 6,567,777 Transfer to Board of County Commissioners (1,797,314) (1,625,065) - (3,422,379) Transfer to Florida Department of Revenue - (924,293) - (924,293) Total Other Financing Sources(Uses) 4,770,463 (2,549,358) - 2,221,105 Net Change in Fund Balances - - 152,785 152,785 Fund Balances,Beginning of Year - - 3,488,785 3,488,785 Fund Balances,End of Year $ - $ - $ 3,641,570 $ 3,641,570 See accompanying notes. 5 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUND SEPTEMBER 30,2025 Assets Cash and Cash Equivalents $ 5,475,192 Due from Other Governmental Agencies 18,193 Due from Others 128,981 Total Assets 5,622,366 Liabilities Due to Others $ 143,530 Due to Other Governmental Agencies 1,964,049 Due to Board of County Commissioners 112,191 Total Liabilities 2,219,770 Net Position Restricted for: Court Registry $ 1,646,389 Cash Bonds 1,078,710 Tax Deeds 677,497 Total Net)osition $ 3,402,596 See accompanying notes. 6 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUND FISCAL YEAR ENDED SEPTEMBER 30, 2025 Additions Payments Made by Litigants $ 41,548,228 Charges for Services 1,443,702 Fines and Forfeitures 89,376 Total Additions 43,081,306 Deductions Payment of Court Fines, Fees,and Forfeitures - Funds Returned to Litigants 42,648,426 Total Deductions 42,648,426 Net Increase(Decrease)in Fiduciary Net Position 432,880 Net Position,Beginning of Year 5,903,201 Restatement-Prior Period Adjustment (2,933,485) Net Position,Beginning of Year(as Restated) 2,969,716 Net Position,End of Year $ 3,402,596 See accompanying notes. 7 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS Note 1-Summary of Significant Accounting Policies Reporting Entity The Monroe County, Florida Clerk of the Circuit Court (the Clerk) is a separately elected county official established pursuant to the Constitution of the State of Florida. The Clerk's financial statements do not purport to reflect the financial position or the results of operations of Monroe County, Florida (County) taken as a whole. The financial statements of the Clerk have been prepared in accordance with the accounting principles and reporting guidelines established by the Governmental Accounting Standards Board (GASB). Entity status for financial reporting purposes is governed by GASB Statement No. 14, as amended. Although the Clerk's Office is operationally autonomous and legally separate from the Board of County Commissioners (Board), it does not hold sufficient corporate powers of its own to be considered a legally separate entity for financial reporting purposes. Therefore, under GASB guidelines, the Clerk is reported as a part of the primary government of the County.The financial activities of the Clerk, as a constitutional officer, are included in the Monroe County, Florida Annual Comprehensive Financial Report (ACFR). Description of Funds The accounting records are organized for reporting purposes as three governmental funds and a fiduciary fund. General Fund—The General Fund is used to account for all revenues and expenditures applicable to the general operations of the Clerk. Court Related Fund—A Special Revenue Fund is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. The Court Related Fund is a special revenue fund created to account for and report State and local funding restricted for the expenditure of court functions as mandated by Section 28.37, Florida Statutes. Any excess funding over actual expenditures is returned to either the Florida Department of Revenue (DOR) or the Board, depending on where funding originated. Records Modernization Fund—The Records Modernization Fund is a special revenue fund used to account for and report recording fees restricted for records modernization and court technology as specified in Florida Statutes 28.24(13)(d) and (e). Fiduciary Fund—The Fiduciary Fund of the Clerk is a custodial fund,which is used to account for the receipt and disbursement of assets held for other agencies, governments, or individuals. Measurement Focus, Basis of Accounting and Financial Statement Presentation — The Clerk's financial statements are prepared for the purpose of complying with Florida Statute 218.39(2),and Chapter 10.550, Rules of the Auditor General, which require the Clerk to only present fund financial statements. The General Fund and the Special Revenue Funds are governmental funds which use the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when measurable and available. Revenues are considered to be available when they are collectible within 8 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS the current period or soon enough thereafter to pay liabilities of the current period. For this purpose,the Clerk considers revenues to be available if they are collected within 30 days of the end of the current fiscal period and thus recognizes them as revenues of the current year. Expenditures generally are recorded when a liability is incurred, consistent with accrual accounting. However, expenditures related to compensated absences, claims and judgments, debt service, pensions, and other post-employment benefits are recorded when they are due and payable. The Clerk reports the General Fund, Court Related Fund, and the Records Modernization Fund as major governmental funds and the Custodial Fund as a fiduciary fund type. The fiduciary fund uses a flow of economic resources measurement focus to determine net position. The Clerk's operations are segregated between court related and non-court related activities as defined by Article V of the Florida Constitution. Any excess of court related revenue over court related expenditures as of September 30 each year is paid to the DOR's Clerks' Trust Fund. The Board provides non-court related revenue to both the Clerk's General Fund and Court Related fund. Any excess of non- court related revenue over non-court related expenditures is reflected as a liability to the Board in the respective fund at fiscal year-end. Fund Balances Presentation The Records Modernization Fund balance of the governmental funds is classified as restricted. This classification includes amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors or the laws or regulations of other governments. Budgetary Requirements Expenditures are controlled by appropriations in accordance with the budgetary requirements set forth in the Florida Statutes. The budget is prepared on a basis consistent with generally accepted accounting principles. The Florida Clerks of Court Operations Corporation (CCOC) approves only the budget for the Clerk's court related activities for the twelve-months ended September 30, 2025. The non-court related budget is the Clerk's General Fund budget and is approved by the Board. Cash The Clerk's cash consists of demand deposits and cash on hand for operations. All cash is insured by the Federal Deposit Insurance Corporation (FDIC)or covered by the State of Florida collateral pool, a multiple financial institution pool with the ability to assess its members for collateral shortfalls if a member institution fails. Capital Assets Tangible and intangible personal property used by the Clerk's operations are recorded in governmental fund types as expenditures at the time assets are received and a liability is incurred. Purchased assets are capitalized at historical cost and reported in Monroe County ACFR's government-wide financial statements. 9 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS Leases and Subscription-Based Software The Clerk is a lessee for equipment. In the government-wide financial statements in the Monroe County ACFR,the County recognizes the Clerk's leases as a lease liability and as a right-to-use leased asset(leased asset). Similarly, the Clerk has subscription-based information technology arrangements (SBITA) for the right-to-use various information technology software. At the commencement of a lease or a SBITA, the Clerk and the County initially measure the lease or subscription liability at the present value of payments expected to be made during the lease or subscription term. Subsequently, the leased asset or SBITA is amortized on a straight-line basis over its useful life.At the fund level,the Clerk recognizes an expenditure and other financing source in the period the lease or SBITA is initially recognized. Key estimates and judgments related to leases and SBITAs include how the Clerk and County determines: (1) the discount rate it uses to discount the expected lease or subscription payment to present value; (2) lease or subscription term; and (3) lease or subscription payments. ■ The Clerk and the County use the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided,the Clerk uses the County's estimated incremental borrowing rate as the discount rate for the leases. ■ The lease term includes the non-cancellable period of the lease or subscription. Lease or subscription payments include the measurement of the lease liability or subscription liability and are composed of the fixed payments and purchase option price that the Clerk and the County are reasonably certain to exercise. The Clerk monitors changes in circumstances that would require a remeasurement of its lease or subscription and will remeasure the leased asset or SBITA and the related liability if certain changes occur that are expected to significantly affect the amount of respective liability. In the government-wide statements of the Monroe County ACFR, the Clerk's leased assets and SBITAs are reported with other capital assets and the lease liabilities and subscription liabilities are reported with long-term debt in the statement of net position as part of the governmental activities. The leases and SBITAs state they may be canceled in the event budget appropriations are not sufficient to meet the Clerk's obligations under the leases. The Clerk maintains custodial responsibility for the capital assets used by the Clerk's offices. In addition, the Board provides administrative office space and certain other expenditures used by the Clerk at no charge. Compensated Absences The Clerk of Courts permits employees to accumulate earned but unused vacation and sick benefits. The Clerk is not legally required to and does not accumulate expendable available financial resources to liquidate this obligation. The obligation for compensated absences is accrued in the government-wide financial statements of Monroe County's ACFR. 10 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS A summary of activity for the Clerk's compensated absences obligation is as follows: Balance,October 1,2024* $ 1,157,581 Earned 733,005 Used (574,918) Balance,September 30,2025 S 1,315,668 *The beginning balance of compensated absence obligation was restated with the October 1, 2024 implementation of GASB Statement No. 101. The compensated absences obligation includes an estimate of the unused sick leave balance forthe Clerk's voluntary sick leave pool.The sick leave pool allows participating employees to donate a portion of their personally accrued sick leave to a collective pool. This pooled leave can be used by any eligible participating employee who has exhausted all of their own sick, annual, and compensatory leave. Use of pooled leave is limited to the employee's personal illness, accident, or injury as approved by the Clerk.To calculate the compensated absences balance as of September 30, 2024, it is estimated that 30% of the available pooled leave will more likely than not be used. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from estimates. Subsequent Events The Clerk has evaluated subsequent events through February 26,2026,in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. Note 2-Deposits The Clerk follows Florida Statutes for its investment policy,which authorizes investments in certificates of deposit, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, and obligations of the U.S. Government. The total bank balances as of September 30, 2025,were $13,176,347. 11 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS Cash and cash equivalents on September 30, 2025, consist of the following: Fund Type Fair Value Governmental Funds: Demand Deposits $7,794,110 Cash on Hand 3,750 Total Governmental Funds $7,797,860 Custodial Funds: Demand Deposits $5,472,792 Cash on Hand 2,400 Total Custodial Funds $5,475,192 Total 513,273,052 Note 3-Interfund Receivables and Payables Interfund receivables and payables at September 30, 2025, consist of the following: Due from Due to Other Funds Other Funds Court Related Fund $765 $89,847 General Fund 98,039 765 Records Modernization Fund 0 8,192 S98, 004 598,804 The amounts to be paid to the General Fund are the result of year-end payroll transactions that were paid from the General Fund, but the related expenses were charged to the Court Related Fund and the Records Modernization Fund.The amount to be paid to the Court Related Fund is for a year-end procurement card transaction that was paid from the Court Related Fund but the related expenses were charged to the General Fund. Note 4-Fund Balance Presentation The restrictions on the Court Related fund balance are due to the initial lease obligations for mail machines in the Marathon and Plantation Key Clerk Offices.The restrictions placed on Clerk Records Modernization fund balance are described as follows: Public Records Modernization Trust— Florida Statute 28.24(13)(d) requires the collection of an additional service charge to be paid to the Clerk to be used exclusively for equipment, maintenance of equipment, personnel training,and technical assistance in modernizing the public records system of the Clerk's Office. Public Records Court Technology Trust — Florida Statute 28.24(13)(e)(1) requires the collection of an additional service charge to be paid to the Clerk to be used exclusively for the operation and support of an integrated computer system for the judicial agencies and to support the operations and maintenance of the state court system. 12 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS Records Modernization restricted fund balances are as follows: Public Records Modernization Trust $ 1,154,097 Public Records Court Technology 2,487,473 Restricted Fund Balance S 3,641,570 Note 5—Amounts Due To The Board of County Commissioners The variance in the Clerk's General Fund between the amount due to the Board of County Commissioners at September 30, 2025, and the amount actually transferred is due to correcting a prior year accrued expense totaling$498,569 for the digitization of the Clerk's records. In addition,the transfers made during the year include payments to the Board for purposes other than excess fees which further contributes to the difference between the amount due and the amount transferred. Note 6-Retirement Plans The Clerk participates in the FRS for pension benefits. A detailed plan description and any liability for employees of the Clerk are included in the financial statements of the County. Note 7-Postemployment Benefits Other Than Pensions The Clerk participates in the plan established by the Board to provide other postemployment benefits to retirees of the Board of Constitutional Officers.A detailed plan description and any liability for employees of the Clerk are included in the financial statements of the County. Note 8-Risk Management The Clerk is exposed to various risks of loss related to tort;theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.The Clerk participates in the coverage provided by the Board for Workers' Compensation, Group Insurance, and Risk Management Internal Service Funds. Under these programs, Workers' Compensation provides $500,000 coverage per claim for regular employees.Workers'Compensation claims in excess of the self-insured coverage are covered by an excess insurance policy. Risk Management has a $5,000,000 excess insurance policy for general liability claims with a $200,000 self-insured retention, and building property damage is covered for the actual value of the building with a deductible of$50,000. Deductibles for windstorm and flood vary by location. Monroe County purchases commercial insurance for claims in excess of coverage provided by the funds and for all other risks of loss. Settled claims have not exceeded this commercial coverage in any of the past three years. The Clerk makes payments to the Workers' Compensation, Group Insurance and Risk Management Funds based on estimates of the amounts needed to pay prior and current year claims. 13 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS Note 9-Lease and SBITA Obligations Monroe County's lease and SBITA policy requires capitalization of leases or SBITAs in accordance with GASB Statements Nos. 87 and 96 only if annual payments are$100,000 or more.The Clerk leases various office equipment under cancelable arrangements with annual payments less than $100,000 and the lease term is more than 12 months which therefore, qualify as other than short-term leases under GASB Statement No. 87. The Clerk has entered into non-cancelable agreements that qualify as subscription-based information technology arrangements (SBITA) under GASB Statement No. 96 and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. In FY 2025,the Clerk's subscription to the Workday Success Program ended and the Clerk renegotiated a seven-year subscription with Workday which included enhanced Workday features and services. The Clerk has four SBITAs for the year ended September 30, 2025.The future minimum SBITA obligations and the net present value of these minimum SBITA payments as of September 30, 2025, were as follows: SBITA Liability Balance,October 1,2024 $ 1,930,218 Additions 6,567,777 Deductions (817,239) Balance,September 30,2025 S 7,680,756 Year Ending September 30, Principal Interest Total 2026 $ 780,234 $ 49,516 $ 829,750 2027 605,752 254,816 860,568 2028 612,030 233,492 845,522 2029 572,494 211,515 784,009 2030 636,360 189,678 826,038 2031-2035 4,473,886 536,386 5,010,272 Total S 7,680,756 S 1,475,403 S 9,156,159 Note 10—Explanation of Amounts Exceeding Budgeted Appropriations For the fiscal year ended September 30, 2025, outflows exceeded budgeted appropriations in the Clerk's General Fund by$5,648,780 which is attributable to the technical application of GASB Statement No. 87, Leases and GASB Statement No. 96, Subscription-Based Information Technology Arrangements. GASB Statements Nos. 87 and 96 require the full present value of a right-to-use asset to be recognized as an expenditure at the commencement of the subscription term. The budget was not adjusted to cover the initial recognition. This budget overage was fully offset under Other Financing Sources by $6,567,777 related to Lease and SBITA Liabilities Issued. Accordingly, this over-expenditure does not constitute a violation of budgetary compliance requirements. 14 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT NOTES TO FINANCIAL STATEMENTS Note 11-Litigation The Clerk is a party from time to time in various lawsuits and other claims incidental to the ordinary course of its operation, some of which are covered by the Board's self-insurance program. While the results of litigation cannot be predicted with certainty, management believes the final outcome of such litigation will not have a material adverse effect on the Clerk's financial position. Note 12-.Restatement During the year ended September 30, 2025, the Clerk discovered misstated Due From Others related to the Court Registry that should not be reported as such. In accordance with GASB Statement No. 100, Accounting Changes and Error Corrections, the Clerk restated the FY 2024 financial statements to correct the errors. Beginning Net Position, Change in Net Position, and Due From Others have been restated as follows: C u.0 stod ii a II IFund Court Registry Net Position as of October 1,, 21024 4,,576,,779 Restatement (2„933,,485), Court R egi stry IN et Posiiitiiion at Oc ober 1,, 2024,, Restated 1,,743,,254 Change liin Net Position at.October 1, 20+24 (601,422), Restatement (2„933,,48�5), Net iPosiiitiiion at.October 1, 2024, Restated (3,,534,9,07), Due From Others at October 1„ 2024 3,1033W682 Restatement (2„933,,48B5), Due From Others at October 1„ 2024 100,197 15 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET TO ACTUAL GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30, 2025 General Fund Variance Original Final With Budget Budget Actual Final Budget Revenues Intergovernmental-Other $ 7,000 $ 7,000 $ 3,444 $ (3,556) Intergovernmental- Board of County Commissioners 7,044,800 7,044,800 7,044,800 - Charges for Services 882,900 882,900 772,793 (110,107) Interest Income 10,000 10,000 82,439 72,439 Miscellaneous 100 100 4,595 4,495 Total Revenues 7,944,800 7,944,800 7,908,071 (36,729) Expenditures Current: General Government: Clerk Recording 436,645 486,645 458,685 27,960 Clerk Information Systems 1,417,487 1,417,487 1,602,156 (184,669) Clerk Finance 3,981,888 4,031,888 10,110,603 (6,078,715) Internal Audit 749,734 749,734 507,090 242,644 Non-Court Records Management 444,000 344,000 - 344,000 Total Expenditures 7,029,754 7,029,754 12,678,534 (5,648,780) Excess(Deficiency)of Revenues Over (Under)Expenditures 915,046 915,046 (4,770,463) (5,685,509) Other Financing Sources(Uses) Lease and SBITA Liabilities Issued - - 6,567,777 6,567,777 Transfer to Board of County Commissioners (915,046) (915,046) (1,797,314) (882,268) Total Other Financing Sources(Uses) (915,046) (915,046) 4,770,463 (6,567,777) Net Change in Fund Balance - - - - Fund Balances,Beginning of Year - - - - Fund Balances,End of Year $ - $ - $ - $ - 16 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET TO ACTUAL SPECIAL REVENUE COURT RELATED FUND FISCAL YEAR ENDED SEPTEMBER 30, 2025 Special Revenue Court Related Fund Variance Original Final With Budget Budget Actual Final Budget Revenues Intergovernmental-Other $ 1,658,540 $ 1,658,540 $ 1,727,449 $ 68,909 Intergovernmental- Board of County Commissioners 3,102,315 3,102,315 3,102,316 1 Charges for Services 829,847 829,847 1,122,045 292,198 Fines and Forfeitures 1,941,999 1,941,999 2,385,079 443,080 Interest Income 50,000 50,000 72,175 22,175 Miscellaneous - - 983 983 Total Revenues 7,582,701 7,582,701 8,410,047 827,346 Expenditures Current: Court Related: Clerk Administration 2,139,176 1,719,176 671,846 1,047,330 Clerk Records Management 6,750 56,750 42,286 14,464 Clerk Jury Management 193,853 243,853 228,253 15,600 Clerk Circuit Court Criminal 850,333 850,333 814,707 35,626 Clerk Circuit Court Civil 540,637 540,637 398,418 142,219 Clerk Court Information Systems 899,226 899,226 821,824 77,402 Clerk Circuit Court Family 203,086 228,086 204,790 23,296 Clerk Circuit Court Juvenile 61,555 181,555 158,920 22,635 Clerk Circuit Court Probate 496,041 496,041 325,968 170,073 Clerk County Court Criminal 651,977 651,977 542,457 109,520 Clerk County Court Civil 479,552 479,552 439,614 39,938 Clerk County Court Traffic 1,060,515 1,235,515 1,211,606 23,909 Total Expenditures 7,582,701 7,582,701 5,860,689 1,722,012 Excess of Revenues Over Expenditures - - 2,549,358 2,549,358 Other Financing(Uses) Lease and SBITA Liabilities Issued - - - - Transfer to Board of County Commissioners - - (1,625,065) (1,625,065) Transfer to Florida Department of Revenue - - (924,293) (924,293) Total Other Financing(Uses) - - (2,549,358) (2,549,358) Net Change in Fund Balance - - - - Fund Balances,Beginning of Year - - - - Fund Balances,End of Year $ - $ - $ - $ - 17 MONROE COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT SCHEDULE OF REVENUES AND EXPENDITURES-BUDGET TO ACTUAL SPECIAL REVENUE RECORDS MODERNIZATION FUND FISCAL YEAR ENDED SEPTEMBER 30, 2025 Special Revenue Records Modernization Fund Variance Original Final With Budget Budget Actual Final Budget Revenues Charges for Services $ 220,254 $ 220,254 $ 384,794 $ 164,540 Interest Income 15,000 15,000 185,241 170,241 Total Revenues 235,254 235,254 570,035 334,781 Expenditures Current: Modernization Trust 2,040,456 2,040,456 417,250 1,623,206 Total Expenditures 2,040,456 2,040,456 417,250 1,623,206 Excess(Deficiency)of Revenues Over (Under)Expenditures (1,805,202) (1,805,202) 152,785 1,957,987 Net Change in Fund Balance (1,805,202) (1,805,202) 152,785 1,957,987 Fund Balances,Beginning of Year 1,805,202 1,805,202 3,488,785 1,683,583 Fund Balances,End of Year $ - $ - $ 3,641,570 $ 3,641,570 18 OTHER REPORTS P U R V I s G 111 AY INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Clerk of the Circuit Court (the Clerk)as of and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise the Clerk's financial statements, and have issued our report thereon dated February 26, 2026. Our report included an emphasis of matter paragraph to reflect that these financial statements were prepared to comply with Section 218.39, Florida Statutes, and Chapter 10.557(3), Rules of the Auditor General, and are intended to present the financial position and the changes in financial position of the Clerk and do not represent a complete presentation of the financial statements of Monroe County, Florida. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk's internal control over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. Amaterial weakness is a deficiency,or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency,or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and,therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a deficiency in internal control, described below, that we consider to be a material weakness. CERTIFIECD PUBLIC ACCOUNTANTS 6aiz°csvffle � Oca ar �� ' afllahaa;see �� Sarasol.a � Oria.un� to I I;'sampa purrvisgray.com N'Vannben°olll Ajmzu-kw) Florida of �,a(i G«;°d I ubtiic Axgx amaoor s 19 To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ■ 2025-001—Financial Close and Reporting Condition: Accruals of payables and receivables were improperly included in the accounting records as of the fiscal year-end. Criteria: Financial close and reporting processes should be in place to ensure that trial balances used to prepare financial reports are accurate and complete. Further, internal controls over financial reporting should be designed to allow management or employees to prevent, or detect and correct, material misstatements on a timely basis. Cause: Internal controls were not operating effectively and there was a lack of intradepartmental review during the financial close and reporting process. Effect: If the errors had not been corrected during our audit, which is designed only to provide reasonable assurance that the financial statements are fairly presented, the Clerk's receivables and payables would have been overstated in the amounts of$2,933,485 and $498,569, respectively. Recommendation: We recommend that the Clerk and management review internal control processes around financial close and reporting, specifically related to accruals and verifying year-end balances reported on the financial statements,to ensure proper accounting. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk's financial statements are free from material misstatement,we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, non-compliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of non-compliance or other matters that are required to be reported under Government Auditing Standards. Clerk's Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Clerk's response to the findings identified in our audit and described above. The Clerk's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly,we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Clerk's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Purvis! February 26, 2026 Sarasota, Florida 20 U RV I s G iuuuu AY INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH FLORIDA STATUTES SECTIONS 218.415,28.35,28.36,AND 61.181, LOCAL GOVERNMENT INVESTMENT POLICIES To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida We have examined the Monroe County, Florida Clerk of the Circuit Court's(the Clerk)compliance with the local government investment policy requirements of Section 218.415, Florida Statutes, and Sections 28.35, 28.36, and 61.181, Florida Statutes (the specified requirements), during the period October 1, 2024 to September 30, 2025. Management of the Clerk is responsible for the Clerk's compliance with the specified requirements. Our responsibility is to express an opinion on the Clerk's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Clerk complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Clerk complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material non-compliance, whether due to fraud or error. We believe that the evidence obtained is sufficient and appropriate to provide a reasonable basis for ouropinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination of the Clerk's compliance with the specified requirements. In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements of Section 218.415, Florida Statutes, and Sections 28.35, 28.36, and 61.181, Florida Statutes, during the period October 1, 2024 to September 30, 2025. This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and Florida House of Representatives,the Florida Auditor General,federal and other granting agencies, Monroe County, Florida the Clerk, and applicable management, and is not intended to be, andshould not be, used by anyone other than these specified parties. Purvis! February 26, 2026 Sarasota, Florida CERTIFIED PUBLIC ACCOUNTANTS puirvisgray.corn Iwo.oral'um,of'Au7mua.vuur rcmtil F&nida Inst lu ik,"'(111 Cvufflied l"Gsfxlu�:,r 21 U R V I s G 111 AY MANAGEMENT LETTER To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida Report on the Financial Statements We have audited the financial statements of each major fund and the aggregate remaining fund information of the Monroe County, Florida Clerk of the Circuit Court (the Clerk) as of and for the fiscal year ended September 30, 2025, and have issued our report thereon dated February 26, 2026. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America;the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550,Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Accountant's Report on an examination conducted in accordance with American Institute of Certified Public Accountants Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 26, 2026, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The legal authority is disclosed in Note 1 to the financial statements. Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. CERTIFIECD PUBLIC ACCOUNTANTS 6'ai°csvffle � Oca ar �� ' afllahaa;see �� Sarasol.a � Oria.un� to I i;'sampa purrvisgray.com �'Van�ul��u°�aa�/�.ro7�tizuua��u� rn��a{ N��arGialauVuu°a'kutlu��la°a,a,f� �aa�9G«;°�„� I°GaV,�ii�:a�artQuativa�r�uor�;3 22 To the Honorable Kevin Madok Clerk of the Circuit Court of Monroe County, Florida MANAGEMENT LETTER Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate non-compliance with provisions of contracts or grant agreements, or fraud, waste, or abuse, that have occurred, or is likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, Monroe County, Florida, the Clerk, and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. Purvis February 26, 2026 Sarasota, Florida 23 G,,I COURr'C °A Kevin Madok, CPA ' b ' Clerk of the Circuit Court& Comptroller— Monroe County, Florida O�RoE Go. J MANAGEMENT REPONSE Finding 2021-001 —Financial Close and Reporting The Clerk agrees with the recommendation and has implemented corrective action. Staff are assigned to monthly track and verify month-end balance sheet balances to ensure proper reporting. 24 KEY WEST MARATHON PLANTATION KEY 500 Whitehead Street 3117 Overseas Highway 88770 Overseas Highway Key West, Florida 33040 Marathon, Florida 33050 Plantation Key, Florida 33070 1% i-P Ul RV I s G ��l AY cir i,,,f I m I IPURIIIIU A CCOU IN I A,1JTS 0�(ahl I Taflaha� see � Saraso�a I Oflhmdo � ]imipa purvisgray-com