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

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 Fl

PALM BEACH COUNTY, FLORIDA

SHERIFF STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND For the fiscal year ended September 30, 2008

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

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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

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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

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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

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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

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Sheriff of Palm Beach County Sheriff

Appendix A - Prior Year Recommendations to Improve

Financial Management, Accounting Procedures

and Internal Controls

PAGE INTENTIONALLY LEFT BLANK

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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.

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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

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CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA BALANCE SHEET - GOVERNMENTAL FUNDS

September 30, 2008

Major Funds Public Records Total General Modernization Governmental

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.

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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

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.

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CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA STATEMENT OF NET ASSETS - INTERNAL SERVICE FUND

September 30, 2008

Insurance Fund ASSETS

Accounts receivable, net 334,504

LIABILITIES

Insurance claims payable 752,000

Total liabilities 801,854 NET ASSETS

The notes to the financial statements are an integral part of this statement.

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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

Insurance Fund Operating revenues:

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 :

Total nonoperating revenues 84,484

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.

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CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA STATEMENT OF CASH FLOWS INTERNAL SERVICE FUND For the fiscal year ended September 30, 2008

Insurance Fund

Cash received from other funds for goods and services 7,056,839

Cash flows from investing activities:

Net cash provided by investing activities 84,484

Reconciliation of operating income to net cash provided by (used in) operating activities:

Adjustments to reconcile operating income to net cash (used in) operating activities:

(Decrease) in vouchers payable and accrued liabilities (1,140)

The notes to the financial statements are an integral part of this statement.

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CLERK & COMPTROLLER PALM BEACH COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET ASSETS - AGENCY FUND

September 30, 2008

ASSETS

Accounts receivable, net 336,447

Due from other governments 101,737