S PECIAL-PURPOSE F INANCIAL S TATEMENTS, R EQUIRED S UPPLEMENTARY I NFORMATION, O THER F INANCIAL I NFORMATION AND O THER R EPORTS

S PECIAL-PURPOSE F INANCIAL S TATEMENTS, R EQUIRED S UPPLEMENTARY I NFORMATION, O THER F INANCIAL I NFORMATION AND O THER R EPORTS Pinellas County, Florida Year Ended September 30, 2009 With Summarized Financial Information for the Year Ended September 30, 2008

Special-Purpose Financial Statements, Required Supplementary Information, Other Financial Information and Other Reports Year Ended September 30, 2009 With Summarized Financial Information for the Year Ended September 30, 2008 Contents Report of Independent Certified Public Accountants...1 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 Special-Purpose Balance Sheet Agency Fund...5 Notes to Special-Purpose Financial Statements...6 Required Supplementary Information Special-Purpose Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund...18 Special-Purpose Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Court Fund (Budgetary Basis)...19 Special-Purpose Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Public Records Modernization Fund...20 Note to Required Supplementary Information...21 Other Financial Information Statement of Changes in Assets and Liabilities Agency Fund...23 Other Reports Report of Independent Certified Public Accountants 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...24 Management Letter on Internal Control and State Reporting Requirements...26 0910-1099538

Ernst & Young LLP Suite 1200 401 East Jackson Street Tampa, FL 33602 Tel: +1 813 225 4800 Fax: +1 813 225 4711 www.ey.com Report of Independent Certified Public Accountants The Honorable Ken Burke, Pinellas County, Florida We have audited the accompanying special-purpose financial statements of each major fund and the aggregate remaining fund information of Pinellas County, Florida, (the Clerk) as of and for the year ended September 30, 2009, as listed in the table of contents. These special-purpose financial statements are the responsibility of the management of the Clerk. Our responsibility is to express opinions on these financial statements based on our audit. The prior year summarized comparative information has been derived from the 2008 special-purpose financial statements and in our report dated December 29, 2008, we expressed unqualified opinions on the respective financial statements of each major fund and the aggregate remaining fund information. 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. We were not engaged to perform an audit of the Clerk s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Clerk s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the special-purpose financial statements, assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall special-purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. As discussed in Note 1, the accompanying special-purpose financial statements referred to above were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Chapter 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 Clerk s financial position and its changes in financial position, where applicable, thereof, for the year then ended in conformity with accounting principles generally accepted in the United States. Additionally, the special-purpose financial statements present only the Clerk and do not purport to, and do not, present fairly the financial position, of Pinellas County, Florida, as of September 30, 2009, and the changes in its financial position where applicable thereof, for the year then ended, in conformity with accounting principles generally accepted in the United States. 0910-1099538 1 A member firm of Ernst & Young Global Limited

In our opinion, the special-purpose financial statements referred to above present fairly, in all material respects, the respective financial position of the each major fund and the aggregate remaining fund information of Pinellas County, Florida, Clerk as of September 30, 2009, and the respective changes in financial position, where applicable thereof, for the year then ended, in conformity with accounting principles generally accepted in the United States. In accordance with Government Auditing Standards, we have also issued our report dated January 20, 2010, 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, and 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. The required supplementary information disclosed on pages 18-22 is not a required part of the special-purpose financial statements, but is supplementary information required by the Governmental Accounting Standards Board (GASB). 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 made for the purpose of expressing opinions on the special-purpose financial statements. The accompanying other financial information is presented for purposes of additional analysis and is not a required part of the special-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the special-purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the specialpurpose financial statements taken as a whole. This report is intended solely for the information and use of the, Pinellas County, Florida management, the Board of County Commissioners of Pinellas County, Florida, 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. January 20, 2010 ey 0910-1099538 2 A member firm of Ernst & Young Global Limited

Special-Purpose Balance Sheet Governmental Funds September 30, 2009 With Summarized Financial Information for the Year Ended September 30, 2008 Public Records General Court Modernization Totals Fund Fund Fund 2009 2008 Assets Cash $ 3,030,442 $ 4,856,324 $ 2,899,377 $ 10,786,143 $ 14,237,985 Investments 4 65 69 82 Due from Pinellas County, Florida Constitutional Officers 10,693 10,693 27,054 Due from Pinellas County, Florida Board of County Commissioners 44,884 44,884 53,122 Due from other governments 19,240 165,882 185,122 207,210 Accounts receivable 3 3 274 Other assets 139,388 Total assets $ 3,105,266 $ 5,022,271 $ 2,899,377 $ 11,026,914 $ 14,665,115 Liabilities and fund balances Liabilities: Accounts payable $ 328,675 $ 30,046 $ 440,771 $ 799,492 $ 1,851,823 Accrued liabilities 818,176 1,096,374 13,978 1,928,528 1,897,322 Due to Pinellas County, Florida Constitutional Officers 1,420 1,420 2,025 Due to Pinellas County, Florida Board of County Commissioners 1,941,406 10,167 54,652 2,006,225 1,566,754 Due to other governments 2,877 48,052 50,929 772,518 Deposits 12,712 3,837,632 3,850,344 3,639,114 Total liabilities 3,105,266 5,022,271 509,401 8,636,938 9,729,556 Fund balance: Reserve for future operations 2,389,976 2,389,976 4,935,559 Total liabilities and fund balances $ 3,105,266 $ 5,022,271 $ 2,899,377 $ 11,026,914 $ 14,665,115 See accompanying notes. 0910-1099538 3.

Special Purpose Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2009 With Summarized Financial Information for the Year Ended September 30, 2008 Public Records General Court Modernization Totals Fund Fund Fund 2009 2008 Revenues: Charges for services $ 3,784,705 $ 13,533,178 $ 1,376,702 $ 18,694,585 $ 25,806,656 Intergovernmental 1,089,643 1,089,643 1,202,493 Fines and forfeitures 4,136,962 321,773 4,458,735 5,449,350 Interest income 37,463 218,963 14,439 270,865 775,682 Miscellaneous 16,953 16,953 194,882 Court revenue appropriated from State 7,398,038 7,398,038 1,760,976 Total revenues 4,928,764 25,287,141 1,712,914 31,928,819 35,190,039 Expenditures: General government: Salaries and benefits 12,975,096 22,753,326 300,598 36,029,020 37,028,153 Operating expenditures 3,265,329 2,421,932 3,853,667 9,540,928 9,949,252 Capital outlay 130,181 5,445 104,232 239,858 704,012 Distribution of excess court revenue to the State 106,438 106,438 768,256 Total expenditures 16,370,606 25,287,141 4,258,497 45,916,244 48,449,673 Excess (deficiency) of revenues over (under) expenditures (11,441,842) (2,545,583) (13,987,425) (13,259,634) Other financing sources (uses): Transfers in: Pinellas County, Florida Board of County Commissioners appropriations 12,629,460 12,629,460 13,754,570 Transfers out: Distribution of excess appropriations to Pinellas County, Florida Board of County Commissioners (1,187,618) (1,187,618) (978,642) Total other financing sources (uses) 11,441,842 11,441,842 12,775,928 Net change in fund balances (2,545,583) (2,545,583) (483,706) Fund balances beginning of year 4,935,559 4,935,559 5,419,265 Fund balances end of year $ $ $ 2,389,976 $ 2,389,976 $ 4,935,559 See accompanying notes 0910-1099538 4.

Special-Purpose Balance Sheet Agency Fund September 30 2009 2008 Assets Cash $ 17,155,689 $ 11,099,748 Investments 1,094 1,094 Accounts receivable 214,188 165,381 Due from other governments 23,395 22,561 Total assets $ 17,394,366 $ 11,288,784 Liabilities Due to other governments $ 6,657,803 $ 3,297,578 Deposits 10,736,563 7,991,206 Total liabilities $ 17,394,366 $ 11,288,784 See accompanying notes. 0910-1099538 5.

Notes to Special-Purpose Financial Statements September 30, 2009 1. Summary of Significant Accounting Policies and Practices (a) Reporting Entity The Pinellas County, Florida ( or Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Section 129, Florida Statutes, the s budget for the General Fund is submitted to the Pinellas County, Florida Board of County Commissioners (Board or BOCC) for approval. The Public Records Modernization Fund budget is approved by the Clerk of the Circuit Court. Additionally, the Court Fund budget is submitted to the Clerk of Court Operations Corporation of the State of Florida for approval. The Reserve for future operations represents resources for use by the Public Records Modernization Fund. The Clerk of the Circuit Court has retained a fund balance of $2,389,976 at September 30, 2009, in this special revenue fund in accordance with the approved budget established under Section 28.36, Florida Statutes. (b) Measurement Focus, Basis of Accounting, and Basis of Presentation These special-purpose financial statements include the general fund, special revenue funds, and agency fund of the. The accompanying special-purpose financial statements were prepared for the purposes of complying with Section 218.39, Florida Statutes, and Chapter 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. Chapter 10.556(5), Rules of the Auditor General for Local Governmental Entity Audits, requires the Pinellas County, Florida Clerk s financial statements to present only 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 Pinellas County, Florida as of September 30, 2009, and the changes in its financial position for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management s Discussion and Analysis for State and Local Governments, but otherwise constitute financial statements prepared in conformity with U.S. generally accepted accounting principles. The utilizes the following major governmental funds. General Fund The General Fund is a major fund used to account for all revenues and expenditures applicable to the general operations of the, which are not accounted for in another fund. All operating revenue, which is not specifically restricted or designated as to use, is recorded in the General Fund. 0910-1099538 6

Notes to Special-Purpose Financial Statements 1. Summary of Significant Accounting Policies and Practices (continued) Court Fund Prior to July 1, 2009, this special revenue major fund was established to account for court-related filing fees, service charges, fines, and court costs of the Clerk of the Circuit Court and to fund all court related functions as mandated by Section 28.35, Florida Statutes. Effective July 1, 2009, in accordance with Section 28.37, Florida Statutes all courtrelated fines, fees, service charges, and costs are considered state funds, except as otherwise provided in Sections 28.241 and 34.041. Public Records Modernization Fund This major special revenue fund is mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the Clerk of the Circuit Court. An additional amount is collected pursuant to Section 28.24(12)(e), Florida Statutes, and used exclusively for funding court-related technology needs. Effective July 1, 2009, ten percent of all court-related fines collected by the Clerk shall be deposited into this fund to be used exclusively for additional Clerk court-related operational needs and program enhancements. The s activities are classified as court-related and noncourt-related. The s General Fund activity, which is classified as noncourt-related, is funded through service charges for recording instruments and documents into the official records and through transfers in from the Pinellas County, Florida Board of County Commissioners. Prior to July 1, 2009, court-related activities were funded by the fees charged by the Clerk of the Circuit Court as authorized by Florida Statutes, for maintaining the County and Circuit Court records, and collecting the fines and fees assessed by the courts. These court fees were to be used exclusively for funding court-related operations of the. The excess of revenues collected over expenditures were required to be returned to the State for deposit in its General Revenue Fund. Effective July 1, 2009, these fees are considered state funds and shall be remitted by the Clerk to the Department of Revenue for deposit into the Clerks of the Court Trust Fund within the Justice Administrative Commission. The Clerk receives one-twelfth of the approved budget monthly from the State to fund court-related operations. The Public Records Modernization Fund is funded by a portion of recording fees. 0910-1099538 7

Notes to Special-Purpose Financial Statements 1. Summary of Significant Accounting Policies and Practices (continued) The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance current liabilities of the fiscal year). For this purpose, the considers revenues to be available if they are collected within 60 days after the end of the current period. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Charges for services, interest income, and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. The general operations of the are funded principally by fees from third parties and appropriations from the Board. The appropriations from the Board are presented in the s financial statements as transfers in. Section 218.36(1) Florida Statutes provides that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Pinellas County, Florida Board of County Commissioners within 31 days following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as a transfer out (other financing use) in the accompanying special-purpose financial statements. Prior to July 1, 2009, Section 28.37(4) Florida Statutes further provided that by January 1 following the fiscal year end, the must remit to the Department of Revenue the cumulative excess of all fees, service charges, court costs, and fines retained by the over the amount needed to meet the approved budget amounts established by Section 28.36, Florida Statutes. The amount of this distribution was recorded as a liability and as an expenditure in the accompanying special-purpose financial statements. Effective July 1, 2009, pursuant to Section 28.36, Florida Statutes, the Clerk receives onetwelfth of the approved budget for the period July 1, 2009 through June 30, 2010 from the State. The excess of revenues over expenditures for the nine months ended June 30, 2009 was refunded to the State in July 2009. 0910-1099538 8

Notes to Special-Purpose Financial Statements 1. Summary of Significant Accounting Policies and Practices (continued) Capital outlays expended in the governmental funds are capitalized in the basic financial statements of the Board of County Commissioners rather than in the governmental funds of the. Additionally, the reports the following fund type: Fiduciary Funds Agency Funds These funds are used to account for assets held by the in a trustee capacity or as an agent for individuals, private organizations, other governments, and other funds. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. (c) Investments Investments are carried at fair value. The invested funds during the fiscal year with the Local Government Surplus Funds Trust Fund which is carried at amortized cost. The fair value of the s position in the trust is the same as the value of the trust shares. The Local Government Surplus Funds Trust Fund met the criteria to be a 2a7-like pool, as defined in GASB 31, Certain Investments and External Investment Pools, and is permitted to report investments at amortized cost. A 2a7-like pool is not registered with the Securities and Exchange Commission (SEC) as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the regulations set forth in the SEC s Rule 2a7 of the Investment Company Act of 1940, which comprises the rules governing money market funds. Thus, this pool operates essentially as a money market fund and is not categorized as to custodial risk according to the criteria set forth in GASB Statement No. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements, and GASB Statement No. 40, Deposit and Investment Risk Disclosures. (d) Compensated Absences All full-time employees of the are entitled to annual vacation and sick leave with pay. The employees are generally allowed to accumulate vacation leave up to a maximum of three years leave. Prior to December 24, 1994, sick leave was accumulated with no 0910-1099538 9

Notes to Special-Purpose Financial Statements 1. Summary of Significant Accounting Policies and Practices (continued) maximum. Beginning December 24, 1994, employees no longer accrue sick leave. Upon termination, the employee is paid for up to one-half of accumulated sick leave, depending on length of service, and all of the accumulated vacation. Vacation and sick leave payments are included in operating costs when the payments are made to the employees. The Clerk of the Circuit Court does not and is not legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds but rather is reported in the basic financial statements of the Board of County Commissioners. (e) Use of Estimates The preparation of special-purpose financial statements is in conformity with Section 218.39, Florida Statutes, and Chapter 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits, and requires management to make use of estimates that affect the reported amounts in the special-purpose financial statements. Actual results could differ from the required estimates. (f) Financial Information for 2008 The special-purpose financial statements include certain prior-year summarized comparative information in total but not by major fund. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States. Accordingly, such information should be read in conjunction with the Clerk of the Circuit Court s financial statements for the year ended September 30, 2008, from which the summarized information was derived. 0910-1099538 10

Notes to Special-Purpose Financial Statements 2. Cash and Investments As of September 30, 2009 and 2008, the carrying value of the s cash and investments was as follows: Type 2009 2008 Credit Rating Cash on hand $ 39,131 $ 16,210 N/A Demand deposits 27,902,701 25,321,523 N/A Local Government Surplus Funds Trust Fund: Fund A 1,056 1,128 AAAm Fund B 107 48 Unrated Total cash and investments $ 27,942,995 $ 25,338,909 Financial Statement Presentation Governmental funds $ 10,786,212 $ 14,238,067 Agency funds 17,156,783 11,100,842 $ 27,942,995 $ 25,338,909 Custodial Credit Risk At September 30, 2009, the Circuit Court s deposits were entirely covered by federal depository insurance or by collateral pledged with the State Treasurer pursuant to Section 280, Florida Statutes. Under this Section, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The s investment policy is guided by 1) Section 219.075, Florida Statutes regarding the deposit of funds received and the investment of surplus funds, and 2) Sections 219.075 and 218.415, Florida Statutes authorizing investments in the Local 0910-1099538 11

Notes to Special-Purpose Financial Statements 2. Cash and Investments (continued) Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized statistical rating organization; direct obligations of the United States Treasury; federal agencies and instrumentalities; or interest bearing time deposits or savings accounts in banks organized under the laws of the State of Florida, national banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under State supervision, or in federal savings and loan associations located in the State of Florida or organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. At September 30, 2009, the s investments were with the Local Government Surplus Funds Trust Fund administered by the State Board of Administration. Standard & Poor s issued an AAAm rating on Fund A, now known as Florida PRIME, which is the highest rating category for a government investment pool fund. Fund B is unrated. 3. Accounts Payable Accounts payable in the Governmental Funds result from transactions with various vendors. Funds due to BOCC are amounts due to the Pinellas County BOCC. Funds due to other governments are amounts due to governmental entities other than the BOCC. Deposits are funds held in trust that are due to the citizenry or their authorized representatives. 4. Capital Assets Capital assets used in governmental fund type operations are capitalized in the basic financial statements of the Board of County Commissioners rather than in the governmental funds of the. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the and capitalized at cost in the basic financial statements of the Board. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The maintains custodial responsibility for the capital assets used by the office. No depreciation has been provided on capital assets in these special-purpose financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of the Board. 0910-1099538 12

Notes to Special-Purpose Financial Statements 5. Accumulated Compensated Absences The following is a summary of changes in general long-term liabilities which are reflected in the basic financial statements of the Board of County Commissioners: October 1, 2008 Additions Retirements September 30, 2009 Accrued compensated absences $ 2,581,178 $ 2,842,569 $ 2,997,395 $ 2,426,352 October 1, 2007 Additions Retirements September 30, 2008 Accrued compensated absences $ 2,371,463 $ 2,955,258 $ 2,745,543 $ 2,581,178 These long-term liabilities are not reported in the special-purpose financial statements of the since they have not matured. 6. Employee Retirement Plan Substantially all full-time employees of the are eligible to participate in the State of Florida Retirement System (System), a cost-sharing, multiple-employer defined benefit plan administered by the State of Florida, Division of Retirement. The system is a defined benefit plan for all state, and participating county, district school board, community college, and university employees (Pension Plan). The System also offers eligible employees participation in an alternative defined contribution plan (Investment Plan). The Clerk of the Circuit Court participates in the Elected State Officers Class. Contribution rates are established statewide for all participating governmental units. Accordingly, the actuarial information and related disclosures attributable to the s employees are not determinable. Employees participating in the Pension Plan who retire at or after age 62 with 6 years of credited service, or with 30 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 1.6% for regular employees, 2% for senior management, and 3% for county elected officials for each year of credited service times their average final compensation. Final average compensation is the employee s average of the five highest fiscal years of salary earned during credited service. Vested employees may retire before age 62 and receive benefits that are reduced 5% for each year prior to normal retirement age. 0910-1099538 13

Notes to Special-Purpose Financial Statements 6. Employee Retirement Plan (continued) Employees participating in the Investment Plan are vested after one year of service with no age requirements. The System also provides death and disability benefits. Benefits are established by Section 121, Florida Statutes and Chapter 22B, Florida Administrative Code. The Deferred Retirement Option Program (DROP) is a program that provides an alternative method for payment of retirement benefits for a specified and limited period for members of the System, effective July 1, 1998. Under this program, the employee may retire and have their benefits accumulate in the Florida Retirement System Trust Fund, earning interest, while continuing to work for a system employer. The participation in the program does not change conditions of employment. When the DROP period ends, maximum of 60 months, employment must be terminated. At the time of termination of employment, the employee will receive payment of the accumulated DROP benefits and begin receiving their monthly retirement benefit (in the same amount determined at retirement, plus annual cost-of-living increases). The System publishes an annual report that provides ten-year historical trend information about progress made in accumulating sufficient assets to pay benefits when due. This report may be obtained by writing to Division of Retirement, Research, Education, and Policy Section, 1317 Winewood Boulevard, Building 8, Tallahassee, Florida 32315-9000, or by calling (850) 488-5706 or by accessing their internet site at: http://dms.myflorida.com/dms2/human_resource_support/retirement/publications/ system_information/annual_reports The is required to contribute an actuarially determined rate. The contribution requirements of the are established and may be amended by the State of Florida. The contribution rates are established by fiscal year, beginning each July 1 st. Since member contribution rates remained unchanged during the fiscal year, the contribution rates by job class were as follows: elected county officers 16.53%; regular 9.85%; senior management 13.12%; and DROP employees 10.91%. The s contributions to the plan for the years ended September 30, 2009, 2008 and 2007, were $2,623,416, $2,664,478, and $2,604,492, respectively, equal to the required contributions for each year. This represents 10.05%, 9.91%, and 10.07% of covered payroll, respectively. 0910-1099538 14

Notes to Special-Purpose Financial Statements 7. Other Postemployment Healthcare Benefits (OPEB) Plan Plan Description. The Clerk participates in a single-employer defined benefit healthcare plan that covers eligible retirees and their dependents of the Board of County Commissioners, all Constitutional Officers with the exception of the Sheriff, and the Planning Council and their dependents. The Board administers the plan and establishes the benefits. The healthcare plan does not issue a stand-alone financial report, however additional actuarial information regarding the plan as a whole is disclosed in the notes to the financial statements of Pinellas County. The County pays a percentage of the premium for medical and dental insurance for the former employees with at least 10 years of service who retired prior to October 1, 2004 equivalent to that paid for active employees. For non-medicare eligible retirees, employees enrolled in DROP and those within 5 years of normal FRS retirement prior to October 1, 2004 with 10 years of service, the County will continue funding at the same level as active employees. For employees not part of the previously mentioned groups who retire on or after, October 1, 2004, a health insurance subsidy based on length of service will be provided. The subsidy will range from 25% of the premium for 10 years service, increasing by 3.33% per year of service to 75% for 25 years or more, calculated on the single premium of the lowest cost plan. Funding Policy. The contribution requirements of the plan members and the employers are established and may be amended by the County. The plans are financed on a pay-as-you-go basis. Participating agencies contribute an additional amount per each active employee to fund retiree health care. The Clerk contributed $676,622 to the plan during the fiscal year to fund OPEB benefits. The annual other postemployment benefit cost for both plans is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid by on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. An actuarial valuation on the plan as a whole was performed as of October 1, 2008. The notes to the financial statements and required supplemental information of the County disclose additional information regarding the OPEB plan as a whole. 0910-1099538 15

Notes to Special-Purpose Financial Statements 8. Related-Party Transactions The incurred costs and charges from the Board of County Commissioners during the fiscal years ended September 2009 and 2008 for various services as follows: 2009 2008 Health insurance $ 5,200,597 $ 5,292,750 Risk financing 969,811 1,077,009 Information technology 3,365,410 4,188,760 General fund cost allocation and fleet charges 788,239 1,354,557 Total charges $ 10,324,057 $ 11,913,076 During 2009 and 2008, the Board provided funding to the that amounted to $12,629,460 and $13,754,570, respectively. At September 30, 2009 and 2008, the had a receivable due from other county constitutional officers of $10,693 and $27,054, respectively, and a receivable due from the Board of County Commissioners of $44,884 and $53,122, respectively. Additionally, at September 30, 2009 and 2008, the had amounts due to the Board of County Commissioners as follows: 2009 2008 Distribution of excess appropriations $ 1,184,690 $ 914,540 Interest earned and remitted to the Board 2,928 64,102 Amounts due for various services 182,740 14,021 Government funds payable to Board 1,370,358 992,663 Amounts held on behalf of the Board 635,867 574,091 Total due to Board of County Commissioners $ 2,006,225 $ 1,566,754 9. Risk Management The County is exposed to various risks of loss, including but not limited to general liability, property and casualty, auto and physical damage, and workers compensation. The County is substantially self-insured and accounts for and finances its risks of uninsured loss through 0910-1099538 16

Notes to Special-Purpose Financial Statements 9. Risk Management (continued) an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Board of County Commissioners. During the fiscal years ended September 30, 2009 and 2008, the was charged $969,811 and $1,077,009, respectively, by the County for participation in the risk management program. Under this self-insured program, the County provides coverage for up to $1.5 million per claim for workers compensation. The County has also purchased outside excess coverage for up to $15 million in the aggregate for all claims under the self-insured risk management program. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded commercial coverage in any of the last three years. The County is also self-insured for medical and dental claims covering all of its employees and their eligible dependents. As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the same health care coverage as is offered to active employees at the same premium cost (borne by the retiree) applicable to active employees. No excess insurance coverage has been acquired for these claims. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Claims and Contingencies Litigation The is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operation. In the opinion of the Clerk of the Circuit Court and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the. Grants Grant funds received by the are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the. 0910-1099538 17

0910-1099538 Required Supplementary Information

Special-Purpose Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund Year Ended September 30, 2009 Variance with Final Budget - Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 4,538,340 $ 4,538,340 $ 3,784,705 $ (753,635) Intergovernmental revenue 998,500 1,089,870 1,089,643 (227) Interest income 101,990 101,990 37,463 (64,527) Miscellaneous 16,953 16,953 Total revenues 5,638,830 5,730,200 4,928,764 (801,436) Expenditures: General government: Salaries and benefits 13,085,940 13,993,489 12,975,096 1,018,393 Operating expenditures 4,999,930 4,164,131 3,265,329 898,802 Capital outlay 182,420 202,040 130,181 71,859 Total expenditures 18,268,290 18,359,660 16,370,606 1,989,054 Excess (deficiency) of revenues over (under) expenditures (12,629,460) (12,629,460) (11,441,842) 1,187,618 Other financing sources (uses): Transfers in: Pinellas County, Florida Board of County Commissioners appropriations 12,629,460 12,629,460 12,629,460 Transfers out: Distribution of excess appropriations to Pinellas County, Florida Board of County Commissioners (1,187,618) (1,187,618) Total other financing sources 12,629,460 12,629,460 11,441,842 (1,187,618) Net change in fund balances $ $ $ Fund balances beginning of year Fund balances end of year $ 0910-1099538 18.

Special-Purpose Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Court Fund (Budgetary Basis) Year Ended September 30, 2009 Variance with Final Budget - Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 19,741,370 $ 13,503,110 $ 13,533,178 $ 30,068 Fines and forfeitures 5,941,080 4,119,070 4,136,962 17,892 Interest income 488,030 244,976 218,963 (26,013) Total revenues 26,170,480 17,867,156 17,889,103 21,947 Expenditures: General government: Salaries and benefits 25,862,040 22,753,326 22,753,326 Operating expenditures 2,390,050 2,421,932 2,421,932 Capital outlay 5,445 5,445 Total expenditures 28,252,090 25,180,703 25,180,703 Excess (deficiency) of revenues over (under) expenditures (2,081,610) (7,313,547) (7,291,600) 21,947 Other financing sources (uses): Transfers in: Court revenue received from the State 2,081,610 7,398,038 7,398,038 Transfers out: Distribution of excess court revenue to the State (84,491) (106,438) (21,947) Total other financing sources (uses) 2,081,610 7,313,547 7,291,600 (21,947) Net change in fund balances $ $ $ Fund balances beginning of year Fund balances end of year $ 0910-1099538 19.

Special-Purpose Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Public Records Modernization Fund Year Ended September 30, 2009 Variance with Final Budget - Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 1,619,490 $ 1,619,490 $ 1,376,702 $ (242,788) Interest income 45,670 45,670 14,439 (31,231) Fines and forfeitures 296,380 321,773 25,393 Total revenues 1,665,160 1,961,540 1,712,914 (248,626) Expenditures: General government: Salaries and benefits 328,980 328,980 300,598 28,382 Operating expenditures 2,888,470 4,989,160 3,853,667 1,135,493 Capital outlay 194,200 194,200 104,232 89,968 Total expenditures 3,411,650 5,512,340 4,258,497 1,253,843 Excess (deficiency) of revenues over (under) expenditures (1,746,490) (3,550,800) (2,545,583) 1,005,217 Other financing sources (uses): Reserves 2,053,510 249,200 (249,200) Total other financing sources (uses) 2,053,510 249,200 (249,200) Net change in fund balances 307,020 (3,301,600) (2,545,583) 756,017 Fund balances beginning of year (307,020) 3,301,600 4,935,559 1,633,959 Fund balances end of year $ $ $ 2,389,976 $ 2,389,976 0910-1099538 20.

Note to Required Supplementary Information September 30, 2009 1. Budgetary Process Florida Statutes Sections 129.021 and 129.03 govern the preparation, adoption, and administration of the s annual budget. The budget of the Clerk of the Circuit Court (to the extent of his function as ex-official Clerk to the Board) is prepared for the general fund, which is submitted to and approved by the Board. The also prepares the budget related to his recording function based on anticipated fees. Prior to July 1, 2009, pursuant to Section 28.36, Florida Statutes, a balanced court-related budget had to be prepared on or before August 15 and submitted to the Clerk of Court Operations Corporation (the Corporation) of the State of Florida. If the estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk of the Circuit Court had to report the revenue deficit to the Corporation. Once the Corporation verified the revenue deficit, the could increase fees up to the maximum amounts specified by law to resolve the deficit. If a revenue deficit was still projected, a request could be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. Effective July 1, 2009, pursuant to Section 28.36, Florida Statutes, a balanced court-related budget had to be prepared for the last quarter of the county fiscal year and the first three quarters of the next county fiscal year and submitted to the Corporation by August 17, now administratively housed within the Justice Administrative Commission of the State, for review and approval. The statewide total appropriation for the 2009-2010 state fiscal year was set in the General Appropriations Act. The Corporation determined the amount of each Clerk s budget, but the statewide total of such amounts may not exceed the amount listed in the General Appropriations Act. Beginning in the 2010-11 state fiscal year, the Corporation shall release appropriations to each Clerk quarterly and the amount released will be based on the performance of the Clerk in the preceding quarter. There is a difference between the budgetary basis of accounting and GAAP in the treatment of excess fee distributions to entities outside of the County s reporting entity. On a budgetary basis, distributions of excess fees through these funds are reported as other financing uses. On a GAAP basis, these distributions are reported as expenditures because there is a reduction in the new financial resources of the County. 0910-1099538 21

Note to Required Supplementary Information (continued) 1. Budgetary Process (continued) Budgets for the general fund and public records modernization fund are prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Clerk of Circuit Court s budget funded by the Board must be approved by the Board and any subsequent amendments of the Court Fund budget must be approved by the Corporation. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at each respective fund level. Budgetary changes within each respective fund are made at the discretion of the. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 0910-1099538 22

0910-1099538 Other Financial Information

Statement of Changes in Assets and Liabilities Agency Fund Year Ended September 30, 2009 Balance Balance September 30, September 30, 2008 Additions Deductions 2009 Trust Fund Assets: Cash and cash equivalents $ 11,099,748 $ 99,977,265 $ 93,921,324 $ 17,155,689 Investments 1,094 1,094 Accounts receivable 165,381 13,695,505 13,646,698 214,188 Due from other governments 22,561 253,765 252,931 23,395 Total assets $ 11,288,784 $ 113,926,535 $ 107,820,953 $ 17,394,366 Liabilities: Due to other governments $ 3,297,578 $ 83,470,447 $ 80,110,222 $ 6,657,803 Deposits 7,991,206 30,456,088 27,710,731 10,736,563 Total liabilities $ 11,288,784 $ 113,926,535 $ 107,820,953 $ 17,394,366 0910-1099538 23.

0910-1099538 Other Reports

Ernst & Young LLP Suite 1200 401 East Jackson Street Tampa, FL 33602 Tel: +1 813 225 4800 Fax: +1 813 225 4711 www.ey.com Report of Independent Certified Public Accountants 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 Honorable Ken Burke, Pinellas County, Florida We have audited the special-purpose financial statements of each major fund and the aggregate remaining fund information of the Pinellas County, Florida, (the Clerk) as of and for the year ended September 30, 2009, and have issued our report thereon dated January 20, 2010, which describes that such special-purpose financial statements have been prepared for the purpose of complying with Section 218.39, Florida Statutes, and Chapter 10.577(3), Rules of the Auditor General for Local Governmental Entity Audits. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Clerk s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the special-purpose financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Clerk s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s special-purpose financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 0910-1099538 24 A member firm of Ernst & Young Global Limited

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk s special-purpose 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 special-purpose 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. This report is intended solely for the information and use of the, Pinellas County, Florida management, the Board of County Commissioners and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. January 20, 2010 ey 0910-1099538 25 A member firm of Ernst & Young Global Limited

Ernst & Young LLP Suite 1200 401 East Jackson Street Tampa, FL 33602 Tel: +1 813 225 4800 Fax: +1 813 225 4711 www.ey.com The Honorable Ken Burke, Clerk of the Court Pinellas County, Florida Management Letter on Internal Control and State Reporting Requirements We have audited the special-purpose financial statements of each major fund and the aggregate remaining fund information of the Pinellas County, Florida (the Clerk) as of and for the year ended September 30, 2009, and have issued our report thereon dated January 20, 2010. We conducted our audit in accordance with United States generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Report of Independent Certified Public Accounts on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Special- Purpose Financial Statements Performed in Accordance With Government Auditing Standards. Disclosures in that report, which is dated January 20, 2010, 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 and require that certain items be addressed in this letter. Those standards and provisions require that we plan and perform the audit to obtain reasonable assurance about whether the special-purpose financial statements are free of material misstatement. Current Year Recommendations The Rules of the Auditor General (Chapter 10.554(1)(h)3), require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we did not have any such findings. Status of Prior Year Recommendations The Rules of the Auditor General (Chapter 10.554(1)(h)(1) require that, unless otherwise required to be reported in the auditor s report on internal control over financial reporting and compliance and other matters, a management letter shall include a statement as to whether or not corrective action plans have been taken to address significant findings and recommendations made in the preceding annual financial audit report. We did not report any findings or recommendations in the preceding annual financial audit report. 0910-1099538 26 A member firm of Ernst & Young Global Limited