PALM BEACH COUNTY, FLORIDA ANNUAL FINANCIAL AUDIT REPORT FISCAL YEAR ENDED SEPTEMBER 30, 200-part9 pot

PALM BEACH COUNTY, FLORIDA SHERIFF STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND For the fiscal year ended September 30, 2008 Balance Balance 10/1/2007 Additions Deductions 9/30/2008 ASSETS Cash and cash equivalents -$ 249,311,993$ 249,311,993$ -$ Accounts receivable, net 939,501 8,985,495 9,545,080 379,916 Due from other county funds - 11,912,724 11,912,724 - Due from other governments 163,919 39,016,170 38,718,415 461,674 Other assets 452 892 995 349 Total assets 1,103,872$ 309,227,274$ 309,489,207$ 841,939$ LIABILITIES Vouchers payable and accrued liabilities 77,308$ 90,084,389$ 90,107,416$ 54,281$ Due to other county funds - 70,508,236 70,508,236 - Due to other governments 20,581 384,860 129,809 275,632 Due to individuals 1,005,983 7,412,885 7,906,842 512,026 Other liabilities - 42,427,230 42,427,230 - Total liabilities 1,103,872$ 210,817,600$ 211,079,533$ 841,939$ VIII-22 This is trial version www.adultpdf.com McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. VIII-23 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 VIII-24 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff’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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the Sheriff’s office in a separate letter dated June 15, 2009. This report is intended solely for the information and use of the Honorable Sheriff, management of Palm Beach County, Florida Sheriff’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 McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. VIII-25 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida The Honorable Ric L Bradshaw Sheriff Palm Beach County, Florida We have audited the financial statements of each major fund and the aggregate remaining fund information of the Sheriff of Palm Beach County, Florida (“the Sheriff”), 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 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. We have issued our Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters. Disclosures in that report, if any, which is dated June 15, 2009, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors’ reports: 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. The recommendations made in the preceding annual financial audit report have been addressed in Appendix A to this report. Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Sheriff complied with Section 218.415, Florida Statutes. Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management, accounting procedures, and internal controls. There are no recommendations to improve financial management, accounting procedures, and internal controls for the current annual financial audit report. This is trial version www.adultpdf.com VIII-26 Section 10.554(1)(i)4. Rules of the Auditor General, requires that we address violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an effect on the determination of financial statement amounts that is less than material but more than inconsequential. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on profession judgment, report the following matters that are inconsequential to the determination of financial statement amounts, considering both quantitative and qualitative factors: (1) violations of laws, regulations, contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, and (2) control deficiencies that are not significant deficiencies, including, but not limited to: (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the annual financial statements); (b) failures to properly record financial transactions; and (c) inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. In connection with our audit, we did not have any such findings. Section 10.554(1)(i)6., 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 this management letter, unless disclosed in the notes to the financial statements. The information is disclosed in Note 1 to the financial statements. Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Sheriff, management of the Palm Beach County, Florida Sheriff’s Office, and the Florida Auditor General, and is not intended to be and should not be used by another other than these specified parties. West Palm Beach, Florida June 15, 2009 This is trial version www.adultpdf.com Sheriff of Palm Beach County Sheriff Appendix A - Prior Year Recommendations to Improve Financial Management, Accounting Procedures and Internal Controls VIII-27 Observation Addressed or Observation No Longer No. Prior Year's Observations is Still Relevant Relevant ML 06-01 Application Security X ML 06-02 Data Security X ML 06-03 Security Controls X ML 06-04 IT User Access X ML 06-05 Data Center Access X ML 06-06 IT Security Awareness X This is trial version www.adultpdf.com PAGE INTENTIONALLY LEFT BLANK VIII-28 This is trial version www.adultpdf.com 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 [...]... Entity Audits, requires the Palm Beach County, Florida, Clerk financial statements to only present fund financial statements Accordingly, due to the omission of government-wide financial statements and related disclosures including a management‟s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Palm Beach County, Florida, ... received at September 30, 2008 The budget authority for amounts outstanding at fiscal year- end lapse so they are not shown as either encumbrances or liabilities Funds are reappropriated at the beginning of each fiscal year to provide for commitments that were outstanding as of the prior fiscal year This is trial version www.adultpdf.com IX -18 CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL. .. Adjustment to annual required contribution Annual OPEB cost 520,000 Contributions made (442,045) Increase in net OPEB obligation 77,955 Net OPEB obligation- beginning of year Net OPEB obligation- end of year $ 77,955 The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current year Fiscal Year Ended 9/30/2008 Percentage of Annual Annual OPEB... claims liability reported in the internal service fund at September 30, 2008 for employee group health insurance is $752,000 and is actuarially determined During claim years 2007 and 2008, changes to the claims liability for health insurance were as follows: Current Year Beginning of Claims and Balance at Fiscal Fiscal Year Changes in Claim Fiscal Year Liability Estimates Payments Year- end 2007 $670,000... version www.adultpdf.com CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 The FRS Pension Plan provides for vesting of benefits after 6 years of creditable service Benefits are based on age, average final compensation and years-of-service credit Average final compensation is the average of the five highest fiscal years of earnings Members are eligible for... trial version www.adultpdf.com IX -10 CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 Encumbrances Encumbrances outstanding at year- end represent the estimated amounts of expenditures ultimately to be paid for goods on order or unperformed contracts in process at year- end Because appropriations lapse at year- end, it is the Clerk‟s policy to liquidate open... capitalized at cost and reported in the governmental activities of the basic 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... investments are reported at fair value except for the following which are reported at cost or amortized cost which approximates fair value as permitted by GASB This is trial version www.adultpdf.com IX -13 CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 Statement No 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools:... 2,674,712 Total net assets $ 2,674,712 This is trial version www.adultpdf.com The notes to the financial statements are an integral part of this statement IX-5 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 SelfInsurance Fund Operating revenues: Charges for services $ 8,431,476 Total... 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 Governor/Lieutenant Governor/Cabinet State Attorney/Public Defender County, City, Special District Elected Officers Special . PALM BEACH COUNTY, FLORIDA SHERIFF STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND For the fiscal year ended September 30, 2008 Balance Balance 10/1/2007. remaining fund information of the Sheriff of Palm Beach County, Florida (“the Sheriff”), as of and for the year ended September 30, 2008, and have issued our report thereon dated June 15, 2009, which. made in the preceding annual financial audit report. The recommendations made in the preceding annual financial audit report have been addressed in Appendix A to this report. Section 10.554(1)(i)2.,