2007 Financial Statement - Okeechobee Clerk of Court

Transcription

OKEECHOBEE COUNTY CLERK OF CIRCUIT COURT
SPECIAL-PURPOSE
FINANCIAL STATEMENTS
AND
OTHER FINANCIAL INFORMATION
SEPTEMBER 30, 2007
SEPTEMBER 30, 2007
TABLE OF CONTENTS
Page
Report of Independent Certified Public Accountant.................................................................................
1-2
SPECIAL-PURPOSE FINANCIAL STATEMENTS:
Special-purpose Balance Sheet – Governmental Funds ........................................................................
3
Special-purpose Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds .................................................................................................
4
Fund Balances – Budget and Actual – General Fund ..........................................................................
5
Fund Balances – Budget and Actual – Fine and Forfeiture Fund..........................................................
6
Special-purpose Statement of Fiduciary Net Assets – Agency Fund ....................................................
7
Notes to Special-purpose Financial Statements.....................................................................................
8-13
Combining Special-purpose Statement of Fiduciary Net Assets – All
Agency Funds ........................................................................................................................................ 14-16
Combining Special-purpose Schedule of Changes in Assets and Liabilities All Agency Funds .................................................................................................................................. 17-20
ADDITIONAL ELEMENTS OF REPORT PREPARED IN
ACCORDANCE WITH THE RULES OF THE AUDITOR
GENERAL OF THE STATE OF FLORIDA:
Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of
Special-purpose Financial Statements Performed in Accordance
with Government Auditing Standards ................................................................................................... 21-23
Management Letter................................................................................................................................ 24-27
T
The NCT Group CPA's,L.L.P.
Certified Public Accountants and Consultants
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The HonorableSharonRobertson
OkeechobeeCounty Clerk of Circuit Court
OkeechobeeCounty, Florida
We have audited the special-purposefinancial statementsof the general fund, fine and forfeiture fund,
PRMT fund, and aggregateagency fund information of the OkeechobeeCounty Clerk of Circuit Court,
Okeechobee,Florida (the "Clerk"), as of and for the year ended September30, 2007. These specialpurposefinancial statementsare the responsibility of the managementof the Clerk. Our responsibility is
to expressopinions on thesespecial-purposefinancial statementsbasedon our audit.
We conductedour audit in accordancewith auditing standardsgenerallyacceptedin the United Statesof
America and the standardsapplicable to financial audits containedin GovernmentAuditing Standards
issuedby the Comptroller Generalof the United States.Thosestandardsrequirethat we plan and perform
the audit to obtain reasonableassuranceaboutwhetherthe special-purposefinancial statementsare free of
material misstatement. An audit includes examining, on a test basis, evidencesupportingthe amounts
and disclosures in the special-purposefinancial statements. An audit also includes assessingthe
accounting principles used and significant estimatesmade by management,as well as evaluating the
overall special-purposefinancial statementpresentation. We believe that our audit provides a reasonable
basisfor our opinions.
The special-purposefinancial statementsreferred to above have been prepared for the purpose of
complying with, and on the basis of accountingpracticesspecifiedby, the Rules of the Auditor General,
State of Florida, and are not intended to be a complete presentationunder GovernmentalAccounting
StandardsBoard (GASB) StatementNo. 34, Basic Financial Statements-andManagement'sDiscussion
and Analysis-for Stateand Local Governments.Additionally, the special-purposestatementspresentonly
the Clerk and are not intendedto presentfairly the financial position and changesin financial position of
OkeechobeeCounty, Florida, in conformity with accountingprinciples generally acceptedin the United
States.
In our opinion, the special-purposefinancial statementsreferred to above presentfairly, in all material
respects,the financial position of the generalfund, fine and forfeiture fund, PRMT fund, and aggregate
agencyfund information of the Clerk as of September30, 2007, and the changesin financial position and
budgetary comparison of its General Fund and Fine & Forfeiture Fund for the year then ended, in
conformity with accountingprinciples generallyacceptedin the United States.
811E.MAINSTREET.P.O.BOX1076.LAKELAND,
FLORIDA33802-1076.
(863)683-6783
.
RSMMcGladrey
Network
435 SOUTH COMMERCE AVENUE. SEBRING, FLORIDA 33870-3702. (863) 385-1577
147AVENUEC s.W.SUITE 101 P.O.BOX 2239. WINTERHAVEN,FLORIDA33883-2239.(863)294-4131
AnIndependently
Owned
Member
In accordancewith GovernmentAuditing Standards,we have also issuedour report datedMarch 7, 2008
on our consideration of the Clerk's internal control over financial reporting and on our tests of its
compliancewith certain provisions of laws, regulations,contracts,and other matters.The purposeof that
report is to describethe scopeof our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordancewith
GovernmentAuditing Standardsand shouldconsideredin assessingthe resultsof our audit.
Our audit was conductedfor the purposeof forming an opinion on the fund financial statementstaken as a
whole. The accompanyinginformation identified in the Table of Contentsas Combining Individual Fund
Special-PurposeFinancial Statementsand Scheduleis presentedfor the purposeof additional analysisand
is not a requiredpart of the fund financial statementstakenas a whole.
This report is intendedsolely for the information and use of the Clerk and the Auditor General,Stateof
Florida, and is not intendedto be and shouldnot be usedby anyoneother than thesespecifiedparties.
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THE NCT GROUPCPA's, LLP
Sebring,Florida
March 7, 2008
2
OKEECHOBEE COUNTY CLERK OF THE CIRCUIT COURT
SPECIAL PURPOSE BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2007
General
Assets
Cash
Due from other governments
Prepaid expense
Fine and
Forfeiture
PRMT
Total
$
322,622
10,589
$ 294,410
5,836
10,941
$ 381,448
-
$
998,480
5,836
21,530
$
333,211
$ 311,187
$ 381,448
$
1,025,846
Liabilities
Accounts payable and accrued liabilities $
Due to Board of County Commissioners
Due to other governments
Deposits
Deferred revenue
Total liabilities
50,111
276,930
6,170
333,211
$
$
$
128,308
276,930
115,644
6,170
141,771
668,823
Total Assets
Liabilities and fund balances
Fund balances
Fund balance - reserved for
records modernization
Total fund balances
Total liabilities and fund balances
$
333,211
53,772
115,644
141,771
311,187
$ 311,187
24,425
24,425
357,023
357,023
$ 381,448
See accompanying notes to financial statements.
3
357,023
357,023
$
1,025,846
SPECIAL PURPOSE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2007
Fine and
Forfeiture
General
Revenues
Appropriations from
Board of County Commissioners
Intergovernmental
Fines & Forfeitures
Charges for services
Interest
Miscellaneous
Total revenues
$ 1,046,371
441,887
26,773
2,978
1,518,009
Expenditures
Current:
General Government:
Salaries and benefits
Operating expenditures
Excess return to state
Capital outlay
Total expenditures
$
1,045,855
144,968
50,256
1,241,079
Excess of revenues
over expenditures
481,604
371,917
551,015
19,260
1,423,796
PRMT
$
1,236,898
71,254
115,644
1,423,796
122,121
34,734
156,855
Total
$
26,003
56,941
153,556
236,500
1,046,371
481,604
371,917
1,115,023
80,767
2,978
3,098,660
2,308,756
273,163
115,644
203,812
2,901,375
276,930
-
(79,645)
197,285
(276,930)
(276,930)
-
-
(276,930)
(276,930)
Other financing (uses)
Excess fees to Board of
County Commissioners
Total other financing (uses)
Excess of revenues and other
sources over expenditures and
other uses
-
-
(79,645)
(79,645)
Fund balances, beginning of year
-
-
436,668
436,668
-
$ 357,023
Fund balances, end of year
$
-
$
4
$
357,023
SPECIAL-PURPOSE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
Budget
Original
Final
Revenues
Appropriations from Board of
Interest
Miscellaneous
Total revenues
Actual
Variance with
Final budget Positive
(Negative)
$ 1,046,373
457,443
68,817
1,572,633
$ 1,046,373
457,443
68,817
1,572,633
$ 1,046,371
441,887
26,773
2,978
1,518,009
1,189,287
324,358
58,988
1,572,633
1,208,677
301,893
62,063
1,572,633
1,045,855
144,968
50,256
1,241,079
162,822
156,925
11,807
331,554
Expenditures
Current:
General Government:
Capital outlay
Total expenditures
Excess of revenues
over expenditures
$
(2)
(15,556)
(42,044)
2,978
(54,624)
-
-
276,930
276,930
Excess fees to Board of
Total other financing (uses)
-
-
(276,930)
(276,930)
(276,930)
(276,930)
Excess of revenues and other
sources over expenditures and
other uses
-
-
-
-
-
-
-
-
Other financing (uses)
$
-
$
-
$
5
-
$
-
SPECIAL-PURPOSE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FINE AND FORFEITURE FUND
Budget
Original
Revenues
Intergovernmental
Fines & Forfeitures
Interest
Total revenues
$
Expenditures
Current:
General Government:
Excess return to state
Total expenditures
494,454
289,268
510,732
1,294,454
Final
$
1,108,297
186,157
1,294,454
521,817
289,268
510,732
1,321,817
Actual
$
1,244,731
77,086
1,321,817
481,604
371,917
551,015
19,260
1,423,796
Variance with
Final budget Positive
(Negative)
$
1,236,898
71,254
115,644
1,423,796
(40,213)
82,649
40,283
19,260
101,979
7,833
5,832
(115,644)
(101,979)
Excess of revenues
over expenditures
-
-
-
-
-
-
-
-
$
-
$
-
$
6
-
$
-
SPECIAL-PURPOSE STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUND
SEPTEMBER 30, 2007
Assets
Cash
Due from others
$
728,507
5,350
Total Assets
$
733,857
$
536,081
28,765
169,011
$
733,857
Liabilities
Due to individuals
Due to Board of County Commissioners
Total Liabilities
7
NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 2007
NOTE 1 - REPORTING ENTITY
Okeechobee County, Florida (the “County”), is a political subdivision of the State of Florida. It is
governed by an elected Board of County Commissioners (the “Board”) and an appointed County
Administrator as provided by Section 125.73 of the Florida Statutes. The County Administrator is
responsible for the administration of all departments of which the Board has the authority to control
pursuant to the general laws of Florida.
These special-purpose financial statements are fund financial statements that have been prepared in
conformity with the reporting guidelines established by the Governmental Accounting Standards Board
(GASB) and accounting practices prescribed by the Auditor General, State of Florida. The basic financial
statements for the County as a whole, which includes the funds of the Okeechobee County Clerk of
Circuit Court (the “Clerk:”), were prepared in conformity with accounting principals generally accepted
in the United States of America (GAAP).
The Clerk is an elected official of Okeechobee County, Florida, pursuant to the Constitution of the State
of Florida, Article VIII, Section 1(d). The Clerk is part of the primary government of Okeechobee
County, Florida. The Clerk is responsible for the administration and operation of the Clerk’s office. The
Clerk’s financial statements include only the funds of the Clerk’s office. There are no separate legal
entities (component units) for which the Clerk is considered to be financially accountable.
The Clerk funds operations as a Fee Officer and a Budget Officer pursuant to Florida Statutes Chapters
28, 218 and 129, respectively. As a Fee Officer, the Clerk collects fees and commissions from court
related matters. As a Budget Officer, the operations as Clerk to the Board are approved and funded by the
Board. The budgeted receipts from the Board are recorded as revenue on the Clerk’s financial statements
and as other financing uses on the Board’s financial statements. Any excess of revenues and other
financing sources received over expenditures as Clerk to the Board are remitted to the Board at year-end.
Court related fees collected by the Clerk in carrying out her duties are used to fund the court functions of
the Clerk. Excess fees are remitted per Florida Statute 28.36.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Clerk conform to accounting principles generally accepted in the United
States of America as applicable to governments. The following is a summary of the more significant
principles and policies used in the preparation of these financial statements:
Fund Accounting
The accounts of the Clerk are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures as appropriate.
Government resources are allocated to and accounted for in individual funds based upon the purposes for
which they are to be spent and the means by which spending activities are controlled. The purposes of the
Clerk’s funds are as follows:
8
SEPTEMBER 30, 2007
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Governmental Funds:

General Fund – The General Fund is the general operating fund of the Clerk. It is used
to account for general revenues and other receipts that are not required either legally or
by generally accepted accounting principles to be accounted for in other funds.

Fine and Forfeiture Fund – The Fine and Forfeiture fund reports the revenues and
expenditures relating solely to the performance of the standard list of court-related
functions listed in Chapter 28.35, Florida Statutes.

PRMT Fund – The Public Records Modernization Trust Fund (“PRMT”) reports the
revenues and expenditures pursuant to Chapter 29.008, Florida Statutes.
Fiduciary Funds:

Agency Fund – Agency Funds are used to account for assets held by a government as an
agent for individuals, private organizations or other governments and/or funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of
results of operations.
Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts
and reported in the financial statements. Basis of accounting relates to the timing of the measurements
made, regardless of the measurement focus applied.
All governmental and agency funds are accounted for using the modified accrual basis of accounting.
Under this method, revenue is recognized when it becomes measurable and available as net current assets.
Revenues are considered to be available when they are collected within 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 sixty days of the end of the current fiscal period. Expenditures are
generally recognized under the modified accrual basis of accounting when the related fund liability is
incurred.
Budgetary Requirements
General governmental revenues and expenditures accounted for in budgetary funds are controlled by a
formal integrated budgetary accounting system in accordance with the Florida Statutes. An annual budget
is adopted for the General Fund and Fine and Forfeiture Fund. Budget to actual comparisons are provided
in the financial statements for the General Fund and Fine & Forfeiture Fund, where the Clerk has legally
adopted an annual budget. Final budget amounts presented in the accompanying financial statements
have been adjusted for legally authorized amendments of the annual budget for the year. Budgets are
prepared on the modified accrual (GAAP) basis of accounting. The Clerk’s annual budget is monitored at
varying levels of classification detail. However, for purposes of budgetary control, expenditures cannot
legally exceed the total annual budget appropriations at the individual fund level. All appropriations lapse
at year-end.
9
SEPTEMBER 30, 2007
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (concluded)
Budgetary Requirements (concluded)
In the Clerk’s Fine and Forfeiture Fund, excess fees to be returned to the State are reported as operating
expenditures. Excess fees are required by GAAP to be reported on this line even though they are not a
budgeted item under Article V requirements. For this year, the excess fees to be returned are $115,644.
When these excess fees are included, total expenditures exceed the budget by $101,979. Without these
excess fees, the actual budgeted total expenditures would have been under budget by $13,665.
Capital Assets
Capital assets are recorded as expenditures in the general and special revenue funds at the time an asset
is acquired. Assets acquired by the Clerk are capitalized at cost and are reported with Okeechobee
County as a whole.
Accrued Compensated Absences
It is the Clerk’s policy to grant permanent full-time employees vacation and sick leave. For all full-time
employees hired prior to January 15, 1996, the maximum vacation and sick leave to be reimbursed upon
termination will be 240 hours unless the employee has 25 years of service with Okeechobee County. An
employee with 25 years of service or more will be reimbursed for all accrued and unused vacation and
sick leave. For all full-time employees hired after January 15, 1996, the maximum vacation to be
reimbursed upon termination will be 240 hours; the maximum sick leave to be reimbursed will also be
240 hours.
The Clerk’s liability for compensated absences is reported as noncurrent liabilities in the records of
Okeechobee County as a whole. Because of their spending measurement focus, expenditure recognition
for governmental funds is limited to exclude amounts represented by noncurrent liabilities. Since they do
not affect net current assets, such long-term amounts are not recognized as governmental fund
expenditures or fund liabilities.
Reserved Fund Balance
The public records modernization trust fund reserved fund balance is set aside for records modernization
purposes.
Use of Estimates
The preparation of the special-purpose financial statements is in conformity with accounting principals
prescribed by the Auditor General, State of Florida, and requires management to make use of estimates
that affect the reported amounts in the special-purpose financial statements. Actual results could differ
from estimates.
10
SEPTEMBER 30, 2007
NOTE 3 – CASH
Cash Deposits
Custodial credit risk is the risk that in the event of bank failure, the government’s deposits may not be
returned to it. At September 30, 2007, the carrying amount of the Clerk’s deposits was $1,726,987 and
the bank balance was $1,831,261. Deposits in banks and thrift institutions are collateralized as public
funds through a state procedure provided for in Chapter 280, Florida Statutes. Financial institutions
qualifying as public depositories are required to pledge eligible collateral having a market value equal to
or greater than the average daily or monthly balance of all public deposits times the depository’s collateral
pledging level. The Public Deposit Security Trust Fund has a procedure to allocate and recover losses in
the event of a default or insolvency. When public deposits are made in accordance with Chapter 280, no
public depositor shall be liable for any loss thereof.
NOTE 4 – CHANGES IN LONG-TERM OBLIGATIONS
The following is a summary of the changes in long-term obligations of the Clerk for the year ended
September 30, 2007:
Balance
October 1,
2006
Accrued Compensated Absences $
130,718
Additions
$
147,827
Deductions
$
124,883
Balance
September 30,
2007
$
153,662
Accrued compensated absences represent the vested portion of accrued annual leave. See Note 2 for a
summary of the Clerk’s compensated absences policy.
NOTE 5 – EMPLOYEE BENEFITS
Pension Plan
All full-time employees of the Clerk participate in the Florida Retirement System (the “System”). This
System was created by the Florida Legislature and is a cost-sharing, multiple-employer public retirement
plan available to governmental units within the state of Florida. Participants can choose from two
options: the FRS Pension Plan or the FRS Investment Plan.
The System issues a publicly available financial report that includes financial statements and required
supplementary information for the System. That report may be obtained by writing to the Florida
Retirement System, Division of Retirement, 2639-C North Monroe Street, Tallahassee, Florida 323991560, or by calling (850) 488-5706.
11
SEPTEMBER 30, 2007
NOTE 5 – EMPLOYEE BENEFITS (concluded)
Pension Plan (concluded)
The Clerk and all full-time employees are eligible to participate in the System. The Pension Plan
provides that special risk employees who retire at or after age 55 with six years of creditable service and
all other employees who retire at or after age 62 with six years of creditable service are entitled to a
retirement benefit, payable monthly for life, equal to the product of: 1) average monthly compensation in
the highest five years of creditable service; 2) creditable service during the appropriate period; and 3) the
appropriate benefit percentage. Benefits are fully vested on reaching six years of service. Vested
employees may retire after six years of creditable service and receive reduced retirement benefits. The
System also provides death benefits, disability benefits and cost-of-living adjustments. Benefits are
established by Florida Statute.
The Investment Plan provides for vesting after one year of creditable service. Normal retirement benefits
are available to employees who retire at or after age 62 with one or more years of service. Retirement
benefits are based on the employee’s account balance. Employees are not required to contribute to the
plan.
The funding methods and the determination of benefits payable are provided in various acts of the Florida
Legislature. The acts provide that employers, such as the Clerk, are required to contribute 9.85 percent of
the compensation for regular members, 13.12 percent for senior management and 16.53 percent for
county officials, which includes the health insurance subsidy contribution of 1.11 percent.
The Clerk’s contributions to the System for the years ended September 30, 2007, 2006, and 2005 were
$165,674, $118,332 and $91,745, respectively, equal to the required contributions for each year.
Deferred Compensation Plan
The Clerk offers to its employees a deferred compensation plan created in accordance with the Internal
Revenue Code Section 457. The plan, available to all Clerk employees, permits participants to defer a
portion of their salary until future years. Participation in the plan is optional. The deferred compensation
is not available to employees until termination, retirement, death, or unforeseeable emergency. The assts
of the plan are not held in the fiduciary responsibility of the Clerk and are not included in the Clerk’s
financial statements.
NOTE 6 – RELATED PARTY TRANSACTIONS
Transactions with the Okeechobee County Board of County Commissioners for the year ended September
30, 2007 were as follows:
Budget Appropriation – The General Fund of the Clerk received payments from the Board of
County Commissioners for non-court related and accounting services in the amount of
$1,046,371 for the year ended September 30, 2007.
12
SEPTEMBER 30, 2007
NOTE 7 – RISK MANAGEMENT
The Clerk is exposed to various risks of loss related to: torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. Insurance for the Clerk relating
to property, general liability and workers’ compensation is included in the policies maintained by the
Okeechobee County Board of County Commissioners. The amount of insurance settlements has not
exceeded the Clerk’s insurance coverage in any prior fiscal year. The have been no significant reduction
in the insurance coverage from the prior year.
NOTE 8 – CONTRACTUAL OBLIGATIONS
In July 2007, the Clerk entered into a contract for the development of software for court-related activities.
During the year, the Clerk paid $5,588 at the time of contract signing as a deposit. The payment schedule
for the remaining amount due is as follows:
June 30, 2008
September 30, 2009
Upon Final Acceptance
$ 27,941
11,177
11,177
Total
$ 50,295
13
COMBINING SPECIAL-PURPOSE STATEMENT OF FIDUCIARY NET ASSETS
ALL AGENCY FUNDS
SEPTEMBER 30, 2007
Tax
Deed
Documentary
Stamps
Intangible
Taxes
Mediation
Assets
Cash
Due from others
$
97,678
-
$
28,233
-
$
7,817
-
$
-
Total Assets
$
97,678
$
28,233
$
7,817
$
-
$
97,678
$
-
$
-
$
-
Liabilities
Due to individuals
Due to Board of
Total Liabilities
$
28,233
97,678
$
14
28,233
7,817
$
7,817
$
-
Teen
Court
Court
Improvement
Cash
Bond
Registry
of the Court
Jury and
Witness
Escrow
$
13,120
-
$
67,629
-
$
81,129
5,350
$
229,586
-
$ 122,293
-
$
585
-
$
13,120
$
67,629
$
86,479
$
229,586
$ 122,293
$
585
$
-
$
-
$
86,479
$
229,586
$ 122,293
$
-
13,120
$
13,120
67,629
$
67,629
$
-
86,479
$
229,586
$ 122,293
585
$
585
(continued)
15
COMBINING SPECIAL-PURPOSE STATEMENT OF FIDUCIARY NET ASSETS
ALL AGENCY FUNDS (concluded)
SEPTEMBER 30, 2007
Child
Support
Fines and
Costs
Restitution
Assets
Cash
Due from others
$
449
-
$
79,943
-
$
Total Assets
$
449
$
79,943
$
$
-
$
-
$
Liabilities
Due to individuals
Due to Board of
Total Liabilities
449
$
449
)
16
28,765
51,178
$
79,943
45
-
Total
$
728,507
5,350
45 $
733,857
45
$
$
45
536,081
28,765
169,011
$
733,857
COMBINING SPECIAL-PURPOSE SCHEDULE OF CHANGES IN
ASSETS AND LIABILITIES - ALL AGENCY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2007
Balance
October 1,
2006
(Decreases)
Increases
Balance
September 30,
2007
Tax Deed
Assets
Cash
$
104,207
$
295,071
$
301,600
$
97,678
Liabilities
Due to individuals
$
104,207
$
295,071
$
301,600
$
97,678
Documentary Stamps
Assets
Cash
$
42,696
$
2,646,377
$
2,660,840
$
28,233
Liabilities
$
42,696
$
2,646,377
$
2,660,840
$
28,233
Intangible Taxes
Assets
Cash
$
11,207
$
706,885
$
710,275
$
7,817
Liabilities
$
11,207
$
706,885
$
710,275
$
7,817
Mediation
Assets
Cash
$
20
$
-
$
20
$
-
Liabilities
$
20
$
-
$
20
$
-
Teen Court
Assets
Cash
$
29,257
$
-
$
16,137
$
13,120
Liabilities
$
29,257
$
-
$
16,137
$
13,120
(continued)
17
ASSETS AND LIABILITIES - ALL AGENCY FUNDS (continued)
Balance
October 1,
2006
(Decreases)
Increases
Balance
September 30,
2007
Court Improvement
Assets
Cash
$
67,629
$
-
$
-
$
67,629
Liabilities
$
67,629
$
-
$
-
$
67,629
$
$
$
$
52,440
52,440
$
81,129
5,350
86,479
Liabilities
Due to individuals
$
$
86,479
Registry of the Court
Assets
Cash
Cash Bond
Assets
Cash
Due from others
Total assets
$
$
395,285
5,350
400,635
$
366,596
366,596
52,440
$
400,635
$
366,596
$
265,608
$
1,281,043
$
1,317,065
Liabilities
Due to individuals
$
265,608
$
1,281,043
$
1,317,065
$
229,586
Escrow
Assets
Cash
$
84,060
$
395,721
$
357,488
$
122,293
Liabilities
Due to individuals
$
84,060
$
395,721
$
357,488
$
122,293
229,586
(continued)
18
OKEECHOBEE COUNTY, FLORIDA
ASSETS AND LIABILITIES - ALL AGENCY FUNDS (continued)
Balance
October 1,
2006
Increases
Balance
September 30,
2007
(Decreases)
Jury and Witness
Assets
Cash
$
615
$
33,365
$
33,395
$
585
Liabilities
$
615
$
33,365
$
33,395
$
585
Child Support
Assets
Cash
$
481
$
926,991
$
927,023
$
449
Liabilities
$
481
$
926,991
$
927,023
$
449
Fines and Costs
Assets
Cash
$
90,515
$
1,062,156
$
1,072,728
$
79,943
$
35,860
54,655
90,515
$
$
$
423,049
649,679
1,072,728
$
$
415,954
646,202
1,062,156
$
28,765
51,178
79,943
Liabilities
Due to Board of
$
Restitution
Assets
Cash
$
-
$
8,169
$
8,124
$
45
$
-
$
8,169
$
8,124
$
45
Liabilities
Due to Individuals
(continued)
19
ASSETS AND LIABILITIES - ALL AGENCY FUNDS (concluded)
Balance
October 1,
2006
TOTAL - ALL AGENCY FUNDS
Assets
Cash
$ 748,735
Due from others
$ 748,735
Total Assets
Liabilities
Due to individuals
Due to Board of
Total Liabilities
$
506,315
$
35,860
206,560
748,735
Increases
$
(Decreases)
$
$
7,751,063
5,350
7,756,413
$
2,380,639
$
415,954
4,959,820
7,756,413
20
Balance
September 30,
2007
$
$
7,771,291
7,771,291
$
728,507
5,350
733,857
$
2,350,873
$
536,081
$
423,049
4,997,369
7,771,291
$
28,765
169,011
733,857
ADDITIONAL ELEMENTS OF REPORT PREPARED IN
ACCORDANCE WITH THE RULES OF THE AUDITOR GENERAL
OF THE STATE OF FLORIDA
rr
The NCTGroup CPA's,L.L.P.
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF SPECIAL-PURPOSE FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The HonorableSharonRobertson
OkeechobeeCounty Clerk of Circuit Court
OkeechobeeCounty, Florida
We have audited the special-purposefinancial statementsof the OkeechobeeCounty Clerk of Circuit
Court, Okeechobee,Florida (the "Clerk"), asof andfor the yearendedSeptember30, 2007 andhaveissued
our report thereon dated March 7, 2008. We conductedour audit in accordancewith auditing standards
generallyacceptedin the United Statesof Americaandthe standardsapplicableto financial auditscontained
in GovernmentAuditing Standardsissuedby the ComptrollerGeneralof the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we consideredthe Clerk's internal control over financial reporting
as a basisfor designingour auditing proceduresfor the purposeof expressingour opinion on the financial
statements,but not for the purposeof expressingan opinion on the effectivenessof the Clerk's internal
control over financial reporting. Accordingly, we do not expressan opinion on the effectivenessof the
Clerk's internal control over financial reporting.
Our considerationof internal control over financial reporting was for the limited purposedescribedin the
precedingparagraphand would not necessarilyidentify all deficienciesin internal control over financial
reporting that might be significant deficienciesor materialweaknesses.However,as discussedbelow, we
identified certain deficienciesin internal control over financial reporting that we considerto be significant
deficiencies.
A control deficiency exists when the design or operation of a control does not allow managementor
employeesin the normal courseof performing their assignedfunctions to preventor detectmisstatements
on a timely basis. A significant deficiency is a control deficiency, or combinationof control deficiencies,
that adversely affects the entity's ability to initiate, authorize, record, process,or report financial data
reliably in accordancewith generallyacceptedaccountingprinciples suchthat there is more than a remote
likelihood that a misstatementof the entity's financial statementsthat is more than inconsequentialwill
not be preventedor detectedby the entity's internal control.
21
811E.MAINSTREET.p.o.BOX1076.LAKELAND,
FLORIDA33802-1076.
(863)683-6783
435SOUTHCOMMERCE
AVENUE.SEBRING,
FLORIDA33870-3702.
(863)385-1577
.
.
147 AVENUE C s. W. SUITE 101 P.o. BOX 2239 WINTERHAVEN,FLORIDA33883-2239
. (863)294-4131
RSM
McGladre
y Network
.
An IndependentlyOwnedMember
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses and, accordingly, would not necessarily disclose
all significant deficiencies that are also considered to be material weaknesses. However, of the items
identified, we consider 2007-02 to be a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. 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 one instance of noncompliance or other maters that are required to be
reported under Government Auditing Standards and which are described under the heading “Findings and
Responses” as item 2007-01.
FINDINGS AND RESPONSES
2007-01 – Compliance with Florida Statutes
Finding:
Our audit procedures disclosed one instance of noncompliance with Florida Statutes 28.24(12) (e)1 and
29.008(1)(f)2 regarding usage of fees collected for funding court-related technology needs of the Clerk. A
material amount of court-related salaries was charged to the Public Records Modernization Trust (PRMT)
Fund during the fiscal year, which is not considered an allowable use of those funds as described under
Florida Statutes. Also to be considered is that those court-related salaries were not included in the Fine &
Forfeiture (Article V) Fund and were, therefore, not considered in the excess fees computation for that fund.
Recommendation:
We recommend that the Clerk communicate with the Florida Clerk of Court Operations Corporation and the
Florida Association of Court Clerks and Comptrollers to resolve this issue. This communication is strongly
advised since the court-related excess fees have already been remitted to the State.
Management Response:
We will follow your recommendation to communicate with the Florida Clerk of Court Operations
Corporation and the Florida Association of Court Clerks and Comptrollers.
2007-02 – Financial Statement Adjustments
Finding:
One material adjusting journal entry needed to be posted to the PRMT Fund trial balance originally
presented for audit in order for the financial statements to be presented fairly in accordance with generally
accepted accounting principles. The entry was to remove the prepaid balance and record the expenditure
for equipment received before the fiscal year-end. Without this adjusting journal entry, prepaid assets
would be overstated and capital outlay expenditures would be understated by material amounts.
Recommendation:
Financial statements should be prepared in accordance with generally accepted accounting principles. In
this instance, we recommend that equipment should be expended in the fiscal year in which received.
22
C"".'-'c,
We will follow your recommendationto expendequipmentin the fiscal year it is received.
We noted certain mattersthat we reportedto managementof the Clerk in a separateletter datedMarch 7,
2008.
This report is intendedsolely for the information and useof the Clerk, managementand the Stateof Florida
Office of the Auditor Generaland is not intendedto be and shouldnot be usedby anyoneother than these
specifiedparties.
~
}J CX
~OIJo{:> CRA
~ L,L-,P.
THE NCT GROUPCPA's,L.L.P.
Sebring,Florida
March 7, 2008
23
The Rules of the Auditor General (Sections 10.554 (1)(i)5.), allows for the following matters that are
inconsequential to the financial statements, considering both quantitative and qualitative factors, to be
reported based on professional judgment: a.) violations of laws, rules, regulations, and contractual
provisions or abuse that have occurred, or were likely to have occurred, and would have an immaterial effect
on the financial statements; b.) improper expenditures or illegal acts that would have an immaterial effect on
the financial statements; and c.) control deficiencies that are not significant deficiencies, including, but not
limited to: 1.) improper or inadequate accounting procedures (e.g., the omission of required disclosures
from the annual financial statements); 2.) failures to properly record financial transactions; and 3.) other
inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of,
the auditor. See items reported under the heading “Current Year Comments.”
STATUS OF PRIOR YEAR FINDINGS
There were no prior year findings.
CURRENT YEAR COMMENTS
2007-01 – Compliance with Florida Statutes
Finding:
Our audit procedures disclosed one instance of noncompliance with Florida Statutes 28.24(12) (e)1 and
29.008(1)(f)2 regarding usage of fees collected for funding court-related technology needs of the Clerk. A
material amount of court-related salaries was charged to the Public Records Modernization Trust (PRMT)
Fund during the fiscal year, which is not considered an allowable use of those funds as described under
Florida Statutes. Also to be considered is that those court-related salaries were not included in the Fine &
Forfeiture (Article V) Fund and were, therefore, not considered in the excess fees computation for that fund.
Recommendation:
We recommend that the Clerk communicate with the Florida Clerk of Court Operations Corporation and the
Florida Association of Court Clerks and Comptrollers to resolve this issue. This communication is strongly
advised since the court-related excess fees have already been remitted to the State.
We will follow your recommendation to communicate with the Florida Clerk of Court Operations
Corporation and the Florida Association of Court Clerks and Comptrollers.
2007-02 – Financial Statement Adjustments
Finding:
One material adjusting journal entry needed to be posted to the PRMT Fund trial balance originally
presented for audit in order for the financial statements to be presented fairly in accordance with generally
accepted accounting principles. The entry was to remove the prepaid balance and record the expenditure
for equipment received before the fiscal year-end. Without this adjusting journal entry, prepaid assets
would be overstated and capital outlay expenditures would be understated by material amounts.
Recommendation:
Financial statements should be prepared in accordance with generally accepted accounting principles. In
this instance, we recommend that equipment should be expended in the fiscal year in which received.
We will follow your recommendation to expend equipment in the fiscal year it is received.
25
2007-03 – Cash Disbursements Cycle Duties
Finding:
A fundamental concept in a system of internal controls is the segregation of duties which is crucial for
preventing and detecting misstatements and other errors on a timely basis. Currently, the Clerk’s overall
internal controls over cash disbursements are adequate, especially in the area of detective controls, but our
audit procedures have disclosed areas in which preventative internal controls can be improved. The
accounts payable clerk has the duties of creating new vendors, processing voucher packages for payment,
printing disbursement checks, and mailing of approved disbursements and has access to the MICR
cartridge with the Clerk’s signature. It is recognized that the Clerk does have detective controls that
authorize payments, approve new vendor and changes to existing vendors as well as timely bank
reconciliations and review of banking activity.
Recommendation:
We recommend that management complete an evaluation of the assigned duties within the finance
department and consider segregating some of the duties currently assigned to the accounts payable clerk
in order to strengthen the preventative type internal controls of the office. Specifically, the duties of
vendor changes and creation should be assigned to another position, preferably to a higher level employee
such as the Finance Director, and the accounts payable clerk should be restricted from that function.
Furthermore, the check mailing process should be assigned to an employee other than the one preparing
the checks, thereby restricting the check originator/printer from having access to them. Finally, the MICR
cartridge should be restricted to certain employees only or it should be used with the approval of a higher
level employee that is not involved in the accounts payable process.
We will follow your recommendation to complete an evaluation of the assigned duties within the Finance
Division.
2007-04 – Allocation of Salaries and Benefits
Finding:
The finance department’s salaries and benefits are not allocated to the Fine and Forfeiture Fund. The
result is that the Fund does not completely report all of the associated costs related to court functions and
the accounting for those activities. Since the Board of County Commissioners is funding the remainder of
the Clerk’s operations, they may be funding costs that potentially could be court related.
Recommendation:
We recommend that management consider allocating all costs to accurately reflect all the expenditures
associated with court functions.
We concur with your recommendation. However, due to the implementation of Article V, we are
constrained by the state budget and have been unable to allocate all costs to accurately reflect all the
expenditures associated with court functions.
2007-05 – Budget Over-expenditures
Finding:
While the Clerk has complied with Section 28.35, Florida Statutes, regarding budget standards certified
by the Florida Clerk of Courts Operations Corporation, the Clerk’s Fine and Forfeiture Fund reported
excess of expenditures over appropriations at the legal level of budgetary control by $101,979. Total
expenditures include cumulative excess amount of $115,644 due to the Department of Revenue. These
excess amounts are all the fees, service charges, court costs, and fines earned by the Clerk in excess of the
funding needed to meet the approved budget amounts established under Section 28.36, Florida Statutes.
26