Palm beach country, Florida note to the financial statement September 30, 2008_part9 potx

McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. IX-1 Independent Auditor’s Report The Honorable Sharon R. Bock Clerk & Comptroller Palm Beach County, Florida We have audited the accompanying financial statements of each major fund, and the aggregate remaining fund information of the Clerk & Comptroller, Palm Beach County, Florida (the “Clerk”), as of and for the year ended September 30, 2008, as listed in the table of contents. These financial statements are the responsibility of the Clerk’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. As discussed in Note 1, the financial statements referred to above have been prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557 (3), Rules of the Auditor General for Local Governmental Entity Audits. These financial statements are not intended to be a complete presentation of the financial position of the Clerk as of September 30, 2008, and changes in financial position for the year then ended, in conformity with accounting principles generally accepted in the United States. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and aggregate remaining fund information of the Clerk as of September 30, 2008, and the respective changes in financial position, for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated June 15, 2009 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, grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. This is trial version www.adultpdf.com IX-2 The budgetary comparison schedules and schedule of funding progress are not a required part of the financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements. The Combining Statement of Changes in Assets and Liabilities – Agency Fund is presented for purposes of additional analysis and is not a required part of the financial statements. The Combining Statement of Changes in Assets and Liabilities – Agency Fund has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. This report is intended solely for the information and use of the Clerk, management of the Clerk & Comptroller’s office and the Auditor General, of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. West Palm Beach, Florida June 15, 2009 This is trial version www.adultpdf.com CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA BALANCE SHEET - GOVERNMENTAL FUNDS September 30, 2008 Major Funds Public Records Total General Modernization Governmental Fund Trust Fund Funds ASSETS Cash and cash equivalents 5,658,596$ 19,647,446$ 25,306,042$ Accounts receivable, net 212,470 - 212,470 Due from other county funds 1,128,225 - 1,128,225 Due from other funds 2,710,226 - 2,710,226 Due from other governments 191,108 - 191,108 Other assets 1,632 - 1,632 Total assets 9,902,257$ 19,647,446$ 29,549,703$ LIABILITIES Vouchers payable and accrued liabilities 2,829,289$ -$ 2,829,289$ Due to other county funds 1,071,298 - 1,071,298 Due to other funds 479,314 2,667,496 3,146,810 Due to other governments 3,580,353 - 3,580,353 Due to individuals 660,000 - 660,000 Other liabilities 1,282,003 - 1,282,003 Total liabilities 9,902,257 2,667,496 12,569,753 FUND BALANCES Fund balances - 16,979,950 16,979,950 Total fund balances - 16,979,950 16,979,950 Total liabilities and fund balances 9,902,257$ 19,647,446$ 29,549,703$ The notes to the financial statements are an integral part of this statement. IX-3 This is trial version www.adultpdf.com CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the fiscal year ended September 30, 2008 Major Funds Public Records Total General Modernization Governmental Fund Trust Fund Funds Revenues: Intergovernmental 661,642$ -$ 661,642$ Charges for services 37,639,840 2,889,024 40,528,864 Fines and forfeitures 6,370,920 - 6,370,920 Investment income 242,758 603,696 846,454 Miscellaneous 2,791,428 - 2,791,428 Total revenues 47,706,588 3,492,720 51,199,308 Expenditures: Current: General government 69,591,298 1,875 69,593,173 Capital outlay 737,982 - 737,982 Total expenditures 70,329,280 1,875 70,331,155 Excess of revenues over (under) expenditures (22,622,692) 3,490,845 (19,131,847) Other financing sources (uses): Transfers from Board of County Commissioners 16,957,072 - 16,957,072 Transfers to Board of County Commissioners (646,941) - (646,941) Transfers from other funds 6,312,561 - 6,312,561 Transfers to other funds - (6,312,561) (6,312,561) Total other financing sources (uses) 22,622,692 (6,312,561) 16,310,131 Net change in fund balances - (2,821,716) (2,821,716) Fund balances, October 1, 2007 - 19,801,666 19,801,666 Fund balances, September 30, 2008 -$ 16,979,950$ 16,979,950$ The notes to the financial statements are an integral part of this statement. IX-4 This is trial version www.adultpdf.com CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA STATEMENT OF NET ASSETS - INTERNAL SERVICE FUND September 30, 2008 Self- Insurance Fund ASSETS Cash and cash equivalents 2,662,748$ Accounts receivable, net 334,504 Due from other funds 479,314 Total assets 3,476,566$ LIABILITIES Due to other funds 42,730 Insurance claims payable 752,000 Other liabilities 7,124 Total liabilities 801,854 NET ASSETS Unrestricted 2,674,712 Total net assets 2,674,712$ The notes to the financial statements are an integral part of this statement. IX-5 This is trial version www.adultpdf.com CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUND For the fiscal year ended September 30, 2008 Self- Insurance Fund Operating revenues: Charges for services 8,431,476$ Total operating revenues 8,431,476 Operating Expenses: Current: Self-insurance services 8,401,248 Total operating expenses 8,401,248 Operating Income 30,228 Nonoperating revenues : Investment income 84,484 Total nonoperating revenues 84,484 Change in net assets 114,712 Net Assets, October 1, 2007 2,560,000 Net Assets, September 30, 2008 2,674,712$ The notes to the financial statements are an integral part of this statement. IX-6 This is trial version www.adultpdf.com CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA STATEMENT OF CASH FLOWS INTERNAL SERVICE FUND For the fiscal year ended September 30, 2008 Self- Insurance Fund Cash received from customers 961,509$ Cash received from other funds for goods and services 7,056,839 Cash payments to vendors for goods and services (1,413,516) Cash payments to employees for services (42,730) Claims paid (6,769,016) Net cash (used in) operating activities (206,914) Cash flows from investing activities: Interest on investments 84,484 Net cash provided by investing activities 84,484 Net decrease in cash and cash equivalents (122,430) Cash and cash equivalents, October 1, 2007 2,785,178 Cash and cash equivalents, September 30, 2008 2,662,748$ Reconciliation of operating income to net cash provided by (used in) operating activities: Operating income 30,228$ Adjustments to reconcile operating income to net cash (used in) operating activities: (Increase) in accounts receivable (334,504) (Increase) in due from other county funds (180,089) Decrease in other assets 101,465 (Decrease) in vouchers payable and accrued liabilities (1,140) (Decrease) in due to other county funds (42,874) Increase in insurance claims payable 220,000 Net cash (used in) operating activities (206,914)$ The notes to the financial statements are an integral part of this statement. IX-7 This is trial version www.adultpdf.com CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS - AGENCY FUND September 30, 2008 ASSETS Cash and cash equivalents 24,020,447$ Accounts receivable, net 336,447 Due from other governments 101,737 Total assets 24,458,631$ LIABILITIES Due to other governments 7,066,006$ Due to individuals 17,392,625 Total liabilities 24,458,631$ The notes to the financial statements are an integral part of this statement. IX-8 This is trial version www.adultpdf.com CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 IX -10 Public Records Modernization Trust Fund – The Public Records Modernization Trust Fund is a special revenue fund used to account for recording fees which are restricted by Section 28.24, Florida Statutes, to be used for the modernization of the public records system of the office and for the cost of court-related technology needs. Internal Service Fund: Self-Insurance Fund – This fund is used to account for the assessed premiums, claims and administration of the Clerk‟s employee group health insurance program. Fiduciary Fund: Agency Fund – This fund is used to account for cash held by the Clerk as an agent for individuals, organizations or other governments received for fines, forfeitures, filing fees, documentary stamps and intangible tax. 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. The modified accrual basis of accounting is utilized by governmental funds. Under this basis, revenues are recognized if they are susceptible to accrual, that is, when they become both measurable and available to finance expenditures of the current period. For this purpose, the Clerk considers revenues to be available if they are collected within 60 days of year-end. Primary revenue sources susceptible to accrual include intergovernmental, charges for services and interest. Expenditures are recognized when the related fund liability is incurred. Exceptions to this general rule include accumulated sick and vacation pay, which are not recorded as expenditures because these amounts will not be paid from expendable available resources. The accrual basis of accounting is utilized by internal service funds and agency funds. Under this basis, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Internal service funds are accounted for using the economic resources measurement focus in which all assets and liabilities associated with the operation of the fund are included on the statement of net assets. Governmental funds are accounted for on a “spending” or “financial flow” measurement focus. Generally, only current assets and current liabilities are included on the balance sheet. The operating statement reports increases and decreases in net current assets. Agency funds are custodial in nature (assets equal liabilities) and do not measure the results of operations, but assets and liabilities are measured on the accrual basis of accounting. This is trial version www.adultpdf.com [...]... financial statements of the County Capital assets are depreciated using the straight-line method over a period ranging from two to fifteen years The depreciation expense is This is trial version www.adultpdf.com IX -11 CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 recorded in the statement of activities as part of the basic financial statements of the. .. office, and the Auditor General, State of Florida and is not intended to be and should not be used by anyone other than the specified parties West Palm Beach, Florida June 15, 2009 This is trial version www.adultpdf.com IX-28 Management Letter Required By Chapter 10.550 of the Rules of the Auditor General of the State of Florida To the Honorable Sharon R Bock Clerk and Comptroller Palm Beach County, Florida. .. 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 This information is disclosed in Note 1 of the Clerk’s financial statements Section 10.554(1)(i)8.a., Rules of the Auditor General, requires a statement. .. equal to the required contributions for each year The following membership classes and rates, which apply to both the FRS Pension Plan and the FRS Investment Plan, were in effect at September 30, 2008: This is trial version www.adultpdf.com IX -17 CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 Membership Class Rates Regular Special Risk Judges Legislators... at September 30, 2008 in the internal service fund is necessary to provide for actuarial soundness pursuant to the State of Florida s Office of Insurance Regulation as detailed under the guidelines of Florida Statute 112.08 and based on recommendation from the Clerk‟s actuary This is trial version www.adultpdf.com IX -12 CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER. .. closed to deposits and withdrawals and is generally expected to hold all assets to their ultimate maturity and to distribute funds to participants as they become available The Fund B investment is recorded at fair value based on the net asset value of the Fund B assets reported by the SBA This is trial version www.adultpdf.com IX -14 CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS... as to whether or not the Clerk complied with the budget certified by the Florida Clerk of Court Operations pursuant to Section 28.35, Florida Statutes In connection with our audit, we noted no instances of noncompliance Section 10.554(1)(i)8.a., Rules of the Auditor General, requires a statement as to whether or not the Clerk complied with the performance standards developed and certified pursuant to. .. We have audited the financial statements of each major fund and the aggregate remaining fund information of the Clerk & Comptroller, Palm Beach County, Florida (the “Clerk”), as of and for the year ended September 30, 2008, and have issued our report thereon dated June 15, 2009, which was prepared to comply with State of Florida reporting requirements We have issued our Independent Auditor’s Report on... defined by GASB 45 The plan is funded on a pay-as-you-go basis At September 30, 2008 retirees receiving benefits contributed $477 to $1,764 monthly for medical coverage and $18 to $134 monthly for dental This is trial version www.adultpdf.com IX -19 CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 OPEB Cost and Net OPEB Obligation: The annual other post-employment... public depositories pursuant to the Florida Statutes, Chapter 280, "Florida Security for Public Deposits Act" and are covered by either federal depository insurance or collateral held by the Chief Financial Officer of Florida In the event of a default by a qualified public depository, all claims for government deposits would be satisfied by the Chief Financial Officer of Florida from the proceeds of . COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 IX -12 recorded in the statement of activities as part of the basic financial statements of the County. The. of the Clerk & Comptroller, Palm Beach County, Florida (the “Clerk”), as of and for the year ended September 30, 2008, as listed in the table of contents. These financial statements are the. Audits. These financial statements are not intended to be a complete presentation of the financial position of the Clerk as of September 30, 2008, and changes in financial position for the year then