Audit of Walton County Clerk of Court
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OPERATIONAL AUDIT OF THE BOARD OF
COUNTY COMMISSIONERS AND THE CLERK OF THE CIRCUIT COURT WALTON COUNTY, FLORIDA
For the Period October 1, 1996, Through September
30, 1997, and Selected Actions Taken Prior and Subsequent Thereto
BACKGROUND
Authority
Article VIII, Section 1.(a) of the Constitution of the State of Florida,
provides that the State is to be divided by law into political subdivisions called
counties. Article VIII, Sections 1.(c) and (f) of the Constitution of the State of Florida
provide that counties may be established by charter or may operate under general law
without a charter (noncharter counties). Walton County, created by an act of the
Legislative Council of the Territory of Florida on December 29, 1824, is a noncharter
county. As such, Walton County’s officers are those specified in Article VIII,
Section 1 of the Constitution of the State of Florida, and consist of an elected
five-member board of county commissioners and five elected " constitutional"
officers: clerk of the circuit court, property appraiser, sheriff, supervisor of
elections, and tax collector. The scope of this audit includes the Walton County Board of
County Commissioners (BCC) and the Clerk of the Circuit Court (Clerk).
The geographical boundaries of Walton County, which is located in Northwest Florida,
are described in Section 7.66, Florida Statutes. Walton County extends from the
Florida-Alabama border on the north to the Gulf of Mexico on the south and is bordered by
Okaloosa County on the west and Holmes, Washington, and Bay Counties on the east.
Board of County Commissioners
The basic powers and duties of a board of county commissioners, as set forth in
Section 125.01, Florida Statutes, generally encompass a responsibility to provide for the
health, safety, and welfare of the citizens of the county. This responsibility is
typically carried out through the provision of services in such areas as: fire protection
and health programs, recreational programs and facilities, comprehensive planning for
development, housing and community development programs, road and other transportation
facilities and maintenance, zoning regulation, building codes, and utilities programs and
facilities. Section 125.01(1)(t), Florida Statutes, authorizes a board of county
commissioners to adopt ordinances and resolutions for the exercise of its powers and
prescribes fines and penalties for the violation of ordinances. Other provisions of the
Florida Statutes that provide for the powers and duties of the board of county
commissioners address such functions as budgeting (Chapter 129), bond financing (Chapters
130, 131, 132, and 159), fines and forfeitures (Chapter 142), compensation of county
officials (Chapter 145), water and sewer systems (Chapter 153), public health facilities
(Chapters 154 and 155), code enforcement (Chapter 162), levy of ad valorem taxes (Chapter
200), and tangible personal property (Chapter 274).
Clerk of the Circuit Court
Article V, Section 16, and Article VIII, Section 1.(d) of the Constitution of
the State of Florida, provide that there shall be in each county a clerk of the circuit
court, elected by electors of the county for terms of four years. The general powers and
responsibilities of the clerk of the circuit court (clerk) are provided in various general
laws of Florida, with the primary powers and responsibilities set forth in Chapter 28,
Florida Statutes. The clerk has several responsibilities in addition to serving as clerk
of the circuit court, including serving as: clerk of the county court (Chapter 34, Florida
Statutes); clerk and accountant to the board of county commissioners (Sections 28.12 and
125.17, Florida Statutes); recorder of all instruments in the county (Section 28.222,
Florida Statutes); county auditor and custodian of county funds (Article VIII, Section
1.(d) of the Constitution of the State of Florida); agent for the Florida Department of
Revenue (Sections 199.135(1) and 201.11(2), Florida Statutes); and county budget officer
unless the board of county commissioners appoints a different county budget officer
(Section 129.025, Florida Statutes). The clerk’s statutory duties and
responsibilities in each of the capacities described above are as follows:
· Clerk of Circuit and County Courts. As
an officer of the court, the clerk is responsible for certain functions related to the
operations of the circuit and county courts. The clerk keeps the courts’ records and
seal; enters judgments and orders pursuant to Sections 28.29 and 55.101, Florida Statutes;
attends court sessions; gives certified copies from the courts’ records; and performs
other court-related duties. Pursuant to Section 28.211,. Florida Statutes, the clerk
maintains progress dockets in which is recorded the filing of each pleading, motion, or
other papers and any step taken by the clerk in connection with each action, appeal, or
other proceeding before the courts. As provided in Sections 316.650, 316.660, and
318.21(8), Florida Statutes, the Clerk is responsible for collecting and distributing
fines for traffic citations issued by the various law enforcement agencies in Walton
County and for reporting all dispositions of traffic citations to the Florida Department
of Highway Safety and Motor Vehicles. The clerk is responsible for the care and custody of
court funds and, as such, has charge of the registry of the court deposits such as tax
deed sales, county land sales, mortgage foreclosure sales, and collection of fines and
forfeitures. Additionally, the clerk is responsible for bail bonds and the sale of
forfeited bonds and is designated as the central governmental repository for child support
and alimony. When the court orders child support or alimony to be paid through the court,
the clerk performs the functions of receiving, recording, and disbursing moneys received.
· Clerk and Accountant to the Board of County Commissioners. As clerk to
the board of county commissioners, the clerk, pursuant to Section 28.12, Florida Statutes,
is responsible for keeping board minutes and an index thereof and performing such other
duties as the board of county commissioners may direct. The clerk prepares and records the
minutes of all regular and special meetings of the board of county commissioners and has
custody of the county seal and must affix the seal to any paper or instrument as required
by law. The clerk may also give copies of instruments of writing recorded in the
clerk’s office for a fee. Such copies are attested by the clerk’s signature and
authenticated by the seal of the board of county commissioners. As the accountant to the
board of county commissioners, the clerk has the responsibility for keeping records and
making required financial and other reports as directed by the board. Such
responsibilities may include preparing financial statements and reports required by
various State and Federal agencies regulating and/or funding various county activities.
· County Recorder. Pursuant to Section 28.13, Florida Statutes, the
clerk, as custodian of all official documents, must keep all papers filed in the Office
with the utmost care and security. Pursuant to Section 28.222, Florida Statutes, the clerk
is the official recorder of all instruments that may, by law, be recorded in the county.
Deeds, leases, agreements, mortgages, satisfactions of mortgages, tax warrants, notices of
claims of liens, and any instruments relating to ownership, transfer, or encumbrance of or
claims against real or personal property, or interests therein, are examples of
instruments required to be recorded. The clerk is required to record all instruments in
one general series of books, called " Official Records." All records filed with
the clerk are available for public inspection, except when ordered sealed by the court.
· County Auditor and Custodian of Funds. As county auditor, the clerk is
responsible for pre-auditing transactions processed for the board of county commissioners.
The clerk has authority and responsibility to perform the auditing function as an arm of
the board of county commissioners in auditing records of constitutional officers but has
no authority to perform post-audits of other constitutional county officers required by
Section 11.45, Florida Statutes (see Attorney General Opinion No. 86-38). As custodian of
all county funds, the clerk is responsible for the collection, custody, and disbursement
of funds in accordance with Chapter 219, Florida Statutes. The clerk is also responsible
for making investments of surplus board of county commissioners moneys (Section 28.33,
Florida Statutes) not otherwise invested by the board of county commissioners under
provisions of Section 125.31, Florida Statutes, or Chapter 218, Part IV, Florida Statutes
(see Attorney General Opinion No. 82-29).
· Agent for the Florida Department of Revenue. Pursuant to Sections
199.135 and 201.11(2), Florida Statutes, the clerk is a collection agency for the Florida
Department of Revenue. As such, the clerk is responsible for collecting the required
documentary and intangible taxes on certain documents such as deeds and mortgages.
· County Budget Officer. Pursuant to Section 129.025(1), Florida
Statutes, the clerk is responsible for serving as county budget officer unless the board
of county commissioners appoints some other person to perform those duties (see paragraph
43).
Joint Stipulation
As discussed above, the Walton County Clerk of the
Circuit Court (Clerk) performs certain duties for the Walton County Board of County
Commissioners (BCC), in addition to the circuit and county court duties assigned by law to
the Clerk. The specific duties performed by a clerk on behalf of a board of county
commissioners, within the scope of duties described in the above-referenced sections of
law, vary from county to county. In Walton County, certain BCC-related functions, beyond
those related to, but not specifically addressed in the laws setting forth the
Clerk’s responsibilities, had historically been performed by the Clerk. On August 26,
1997, the Circuit Court of the First Judicial Circuit ordered the BCC and the Clerk to
abide by a Joint Stipulation entered into between the BCC and providing for the
transfer of certain responsibilities previously performed by the Clerk to the control and
responsibility of the BCC. These functions included:
· Bookkeeping functions, including receipt of all County-related invoices and/or
billing statements for processing and submission to the Clerk.
· County payroll and insurance.
· North Walton Mosquito Control District.
· Fuel invoicing for District V.
· Maintenance of separate books and files for independent fire departments, the
ambulance department, the landfill, the County building department, and the County
planning and zoning departments.
· Other various duties including permitting and licensing responsibilities, telephone
service, County recycling program, FEMA compliance, public meeting notices, and inventory
of County-owned intangible items.
(7) The Joint Stipulation also authorized the BCC to establish an Office of
Management and Budget and to staff such Office with a County budget officer to carry out
the duties set forth in Chapter 129, Florida Statutes (County Annual Budget).
(8) Under the terms of the Joint Stipulation, the Clerk retained responsibility
for the following
functions prescribed by law: the BCC’s official minutes, the BCC’s and the
Clerk’s computer systems, and all banking services and investments of funds..
Organizational Structure
(9) Walton County is governed by a board of elected commissioners. Chapter 124, Florida
Statutes, provides that the board of county commissioners be composed of five members (one
member for each of five districts having populations as equal as possible) elected by the
electors of the county. Chapter 124, Florida Statutes, also allows voters to approve
single-member representation, also referred to as single-member districts. Under this
alternative method, each of the five commissioners is elected only by voters residing in
the same district as the commissioner, i.e., each elector may vote only for a single
member of the commission who resides in their district and may not vote in the election of
the other four commissioners. The " at-large" method, whereby each elector
(voter), regardless of their district of residence, votes for each commissioner regardless
of the commissioner’s district of residence, is used in Walton County.
(10) The following individuals served as the BCC during the 1996-97 fiscal year:
Charles Harris to 11-18-96 District 1
Joel F. Paul, Jr. , from 11-19-96 District 1
Virginia Pridgen to 11-18-96, Vice-Chairman to 11-18-96 District 2
William A. Young from 11-19-96, Chairman from 11-27-96 District 2
Gerald Wilkerson to 11-18-96 District 3
Randall Infinger from 11-19-96 District 3
J. Gordon Porter, Chairman to 11-26-96 District 4
Rosier Cuchens, Jr. , to 11-18-96 District 5
Van Ness R. Butler, Jr. , from 11-19-96, Vice-Chairman from 11-27-96 District 5
(11) Mr. Ronnie E. Bell served as Administrative Supervisor. As chief executive officer
of the County, his responsibilities include directing the administration of County
offices, departments, and agencies under the general control of the BCC; advising County
officials, various governmental and advisory boards, and County residents in matters
pertaining to County administrative issues; and enforcing various policies, codes,
ordinances, and resolutions adopted by the BCC.
(12) Article VIII, Section 1.(d) of the Constitution of the State of Florida provides
that the clerk shall be elected by the electors of each county for a term of four years.
Catherine King served as Clerk until December 31, 1996. Dan Bodiford became Clerk
effective January 1, 1997..-26-
Related Audits
(13) Our audit did not extend to an examination of the financial statements of the BCC
and the Clerk, or to the BCC’s and Clerk’s administration of Federal financial
awards programs. The BCC’s and Clerk’s financial statements and Federal
financial awards administered by the BCC and the Clerk for the fiscal year ended September
30, 1997, were audited by a certified public accounting firm and the audit report is on
file as a public record with the Clerk.
(14) In their 1996-97 fiscal year audit report, the certified public accounting firm
reported certain irregularities regarding the County’s Section 8 Housing Program, the
primary function of which is to administer Federal Department of Housing and Urban
Development (HUD) funds for the urban renewal and housing assistance in Walton County.
These irregularities, which involved the use of HUD moneys by the former Executive
Director of the Housing Program for fictitious landlords and tenants, were disclosed by an
investigation conducted by the United States Department of HUD, Office of Inspector
General’s Office, and resulted in the indictment and conviction of the former
Executive Director. Pursuant to recommendations included in the certified public
accounting firm’s report, the BCC has implemented certain policies and procedures
regarding the Section 8 Housing Program to help prevent these irregularities from
reoccurring.
STATE OF FLORIDA AUDITOR GENERAL TALLAHASSEE
January 25, 1999
REPORT ON COMPLIANCE AND INTERNAL CONTROL
(15) The Board of County Commissioners (BCC) and the Clerk of the Circuit Court
(Clerk), Walton County, Florida, are responsible for administering numerous operating
units, programs, activities, functions, and classes of transactions in accordance with
governing provisions of laws, ordinances, and other guidelines. Additionally, the proper
administration of public funds requires that management establish and maintain a system of
internal control to provide reasonable assurance that specific entity objectives will be
achieved. The Auditor General, as part of the Legislature’s oversight responsibility
for operations of governmental entities, makes operational audits to determine the extent
to which management has fulfilled those responsibilities.
(16) The scope of this audit focused primarily on those operating units, programs,
activities, functions, and classes of transactions relating to revenues, expenditures, and
assets of the BCC and the Clerk. For each of these areas, our audit included examinations
of various transactions (as well as events and conditions) during the period October 1,
1996, through September 30, 1997, and selected actions taken prior and subsequent thereto.
The audit also included examinations of transactions related to allegations concerning the
Walton County Board of County Commissioners’ and Clerk’s operations to determine
whether such transactions were executed, both in manner and substance, in accordance with
governing provisions of laws, ordinances, and other guidelines. In some instances, these
allegations required us to examine transactions related to certain specified County
officials and employees that were the subject of the allegations.
(17) We conducted our audit in accordance with generally accepted auditing standards
and applicable standards contained in Government Auditing Standards issued
by the Comptroller General of the United States. Our audit objectives for the operating
units, programs, activities, functions, and classes of transactions within the scope of
audit were:
CHARLES L. LESTER, CPA AUDITOR GENERAL
· To evaluate the BCC’s and the Clerk’s performance in administering their
assigned responsibilities in accordance with applicable laws, ordinances, and other
guidelines.
· To determine the extent to which the BCC’s and the Clerk’s systems of
internal control, and selected relevant controls, promote and encourage the achievement of
management's objectives in the categories of compliance with applicable laws, ordinances,
and other guidelines; the economic and efficient operation of the BCC and Clerk offices;
the reliability of financial records and reports; and the safeguarding of assets.
(18) As a part of our audit, we examined, on a test basis, evidence supporting
transactions (as well as events and conditions) which occurred; performed analytical
procedures; reviewed management's administrative constructions of law; and performed such
other procedures as we considered necessary in the circumstances. Our objective was to
evaluate management's compliance with significant provisions of laws, ordinances, and
other guidelines governing those operating units, programs, activities, functions, and
classes of transactions within the scope of audit. 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.
(19) The results of our tests of compliance indicated that, with respect to the items
tested, the BCC and the Clerk had not, in several instances, complied with significant
provisions of laws, ordinances, and other guidelines governing those operating units,
programs, activities, functions, and classes of transactions within the scope of audit.
Matters coming to our attention relating to noncompliance with various guidelines for
those operations audited are noted in the FINDINGS AND
RECOMMENDATIONS section of this report.
(20) In planning and performing our audit, we considered the BCC’s and the
Clerk’s internal control relevant to those operating units, programs, activities,
functions, and classes of transactions within the scope of audit. Our purpose in
considering internal control was to determine the nature, timing, and extent of
substantive audit tests and procedures necessary to the accomplishment of our audit
objectives, not to provide assurance on internal control.
(21) We noted certain matters involving the design and operation of the BCC’s and
the Clerk’s internal control that we consider to be reportable conditions. Reportable
conditions involve matters coming to our attention relating to significant deficiencies in
the design or operation of internal control that, in our judgment, could adversely affect
management's assurance of compliance with applicable laws, ordinances, and other
guidelines; the economic and efficient operation of the BCC and Clerk offices; the
reliability of financial records and reports; and the safeguarding of assets. Those
matters coming to our attention for the operating units, programs, activities, functions,
and classes of transactions within the scope of audit are noted in the FINDINGS AND
RECOMMENDATIONS section of this report.
(22) A material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the risk that
operating deficiencies, material in relation to the financial records and resources of the
operating units, programs, activities, functions, and classes of transactions being
audited, may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. Our consideration of internal control would
not necessarily disclose all matters in the BCC’s and the Clerk’s internal
control that might be reportable conditions and, accordingly, would not necessarily
disclose all reportable conditions that are also considered to be material weaknesses.
However, we believe that the reportable conditions described in the FINDINGS AND
RECOMMENDATIONS section of this report collectively represent material
weaknesses.
(23) This report is intended for the information of the Legislative Auditing Committee,
members of the Florida Senate and the Florida House of Representatives, and applicable
management. Copies of this report are available pursuant to Section 11.45(7), Florida
Statutes, and its distribution is not limited. Respectfully submitted, Charles L. Lester,
CPA Auditor General.
_________________
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