The URL can be used to link to this page

1992MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1992 Prepared By: FINANCE DEPARTMENT Patricia Varney Finance Director MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1992 TABLE OF CONTENTS INTRODUCTORY SECTION: PAGE Letter of Transmittal 1 -7 City Officials 9 Organization Chart 10 Certificate of Achievement for Excellence in Financial Reporting 11 FINANCIAL SECTION: INDEPENDENT AUDITOR'S REPORT 13 GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) Combined Balance Sheet - All Fund Types and Account Groups 16 -17 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 18 Combined Statement of Revenues, Expenditures and .Changes in Fund Balances - Budget and Actual - All Budgeted Govern- mental Fund Types 19 Combined Statement of Revenues, Expenses and Changes in Retained Earnings /Fund Balances - All Proprietary Fund Types and Pension Trust Funds 20 Statement of Cash Flows - Proprietary Fund Types 21 Notes to Financial Statements 23 -38 Required Supplementary Information 39 -41 SUPPLEMENTAL STATEMENTS INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS Governmental Fund Types: General Fund: Comparative Balance Sheets 43 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 44 -47 MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1992 TABLE OF CONTENTS (Continued) PAGE INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS (Continued) Governmental Fund Types: Capital Projects: Comparative Balance Sheet 49 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 50 Proprietary Fund Types: Internal Service: Comparative Balance Sheet 51 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings 52 Fiduciary Fund Types: Trust and Agency Funds: Combining Balance Sheet - All Fiduciary Fund Types 53 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Expendable Trust Funds 54 Balance Sheet - Pension Trust Fund 55 Comparative Statement of Revenues, Expenses and Changes in Fund Balances - Pension Trust Fund 56 Statement of Changes in Assets and Liabilities - Deferred Compensation Fund 57 General Fixed Assets Account Group: Schedule of General Fixed Assets - By Source 59 Schedule of General Fixed Assets - By Function and Activity 60 Schedule of Changes in General Fixed Assets - By Function and Activity 61 MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1992 TABLE OF CONTENTS (Continued) STATISTICAL SECTION: PAGE Comments Relative to Statistical Section 63 Table I - General Governmental Expenditures by Function - Last Ten Fiscal Years 64 Table II - General Revenues by Source - Last Ten Fiscal Years 65 Table III - Property Tax Levies and Collections - Last Ten Fiscal Years 66 Table IV - Assessed Value of Taxable Property - Last Ten Fiscal Years 67 Table V - Property Tax Rates - All Overlapping Governments - Last Ten Fiscal Years 68 Table VI - Computation of Overlapping Debt Service 69 Table VII - Demographic Statistics - Last Ten Fiscal Years 70 Table VIII - Property Value, Construction and Bank Deposits - Last Ten Fiscal Years 71 Table IX - Principal Taxpayers 72 Table X - Miscellaneous Statistics 73 SUPPLEMENTARY AUDITOR'S REPORTS SECTION: Independent Auditor's Report on Internal Control Structure in Accordance With Government Auditing Standards 74 -75 Independent Auditor's Report on Compliance Performed in Accordance With Government Auditing Standards 76 -77 Independent Auditor's Report on Supplementary Schedule of Federal Financial Assistance 78 Schedule of Federal Financial Assistance 79 Independent Auditor's Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs 80 -82 Independent Auditor's Report on Miami Shores Village, Florida Compliance with the General Requirements Applicable to Federal Assistance Programs 83 Independent Auditor's Report on Compliance With Specific Requirements Applicable to Major Federal Financial Assistance Programs 84 Introductory Section January 22, 1993 4. 2 laul * _A// Ms. Gail Macdonald Village Manager Miami Shores Village Miami Shores, Florida 33138 Dear Ms. Macdonald: =�� /W t, e, 10050 N.E. SECOND AVENUE MIA M1 SHORES, FLORIDA 3313B -2362 TELEPHONE (305) 795 -2209 FAX (305) 756 -8972 Submitted herewith is the Comprehensive Annual Financial Report of the Village of Miami Shores, Florida for the fiscal year ended September 30, 1992 as required by Chapter 11.45 of the Florida Statutes and Chapter 10.550 of the Rules of the Auditor General of the State of Florida. INDEPENDENT AUDIT The Village's Finance Department is responsible for the content of this financial report, and it is the official report of the Village. We believe this report represents a fair presentation of the Village's financial position and results of operations at the Village as measured by the financial activities of its various funds and account groups and that all disclosures necessary to enable the reader to gain the maximum understanding of the Village's financial affairs have been included. The Village's independent auditors, Rachlin & Cohen, Certified Public Accountants, have concurred in issuing an unqualified opinion on the financial statements as presented herein. This report consists of five sections. The Introductory Section contains names of Principal Officials of the Village, organizational structure and highlighted financial information. The transmittal letter and table of contents are included in this section. The Financial Section contains the opinion of the Independent Certified Public Accountants, general purpose financial statements, notes to the financial statements and schedules for all funds and account groups which disclose the financial position and results of operations for the 1991 -1992 fiscal year. The presentation of this financial report is being made in accordance with generally accepted accounting principles for the state and local governments as promulgated by the Governmental Accounting Standards Board. The Statistical Section contains data that are intended to reflect social, economic and financial trends, as well as the fiscal capacity of the Village. It is hoped that this information will give users of this report a better historical perspective and assist in assessing current financial status. The fifth Section is the Report on Supplementary Auditor's Reports. Ms. Gail Macdonald Village Manager Miami Shores Village E REPORTING ENTITY AND ITS SERVICES The Village of Miami Shores has been incorporated since 1932 and is a political subdivision of the State of Florida. The Village operates under a council- manager form of government and provides General Government, Public Safety, Public Works and Recreation Services to an estimated 10,097 residents. In addition, during the school year, the Village also provides services for approximately 6,500 college students. The Council appoints the Village Manager, who is the chief administrative officer of the Village and responsible for implementing policies adopted by the Village Council. This report includes all funds and account groups that are controlled by or dependent on the Village Council. The criteria used in determining the reporting entity are consistent with Governmental Accounting Standards Board (GASB) Statement No. 1, "Defining the Governmental Reporting Entity." These criteria deal with various manifestations of oversight which include criteria such as the selection of the governing body, designation of management, the ability to influence operations and fiscal accountability. ACCOUNTING SYSTEM AND INTERNAL CONTROLS The Village's accounting records for governmental and similar fiduciary funds are maintained on a modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded at the time a liability is incurred. Accounting records for the proprietary and pension trust operations are maintained on an accrual basis. Control of the annual budget, adopted by the Village Council, is maintained by a constant review by the Finance Director and Village Manager with monthly financial reports being prepared for internal use. The budget is amended in accordance with provisions of the budget policy during the fiscal year. Internal accounting controls have been designed to provide reasonable, but not absolute, assurance regarding safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and that the evaluation of costs and benefits requires estimates and judgment by management. All internal control evaluations occur within the above framework. We believe that the Village's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. -2- Ms. Gail Macdonald Village Manager Miami Shores Village CASH MANAGEMENT The Village maintains a pooled cash account for all funds under its control. The cash management program involves a mix maintaining principal and earnings free from risk, maintaining adequate liquidity to meet our obligations and maximizing investment return through the solicitation of competitive rates from various investment sources. The Village invested mainly in the State of Florida Local Government Investment Trust Fund for fiscal year 1992. The average yields on maturing investments during the year ranged from 3.90% to 6.03 %, producing interest earnings for the year of $108,889, excluding the Village's Pension Fund. GENERAL GOVERNMENT FUNCTIONS General Fund revenues amount to $7,413,996 for the period, an increase of 6% over the previous fiscal year. General property taxes produced 33.2% of the General Fund revenues during the year compared to 33.5% for the previous year. The amount of General Fund revenues from various sources and the increases and decreases over the previous year are shown in the following tabulation: REVENUE Three revenue sources experienced significant increases during the fiscal year. In the category of Charges for Services, there is an increase of $272,854. This increase is due to higher charges for sanitation services, and an increase in Recreation user fees. Total property taxes increased by $112,601. The total taxable property valuation of $318 million remains level with the preceding year. The Village's ad valorem property tax millage rate for fiscal year 1992 was 7.99 mills (tax per $1,000 of taxable assessed valuation), increased from 7.79 for fiscal year 1991. Of these 7.99 mills, half a mill or $151,970 was voted by Miami Shores Citizens to raise the revenue to build permanent landscaped street closures. In fiscal year 1992, the City also imposed a 10% utility tax on water which brought in $60, 000 in revenue. In fiscal year 1992, an alarm permit was required for homeowners who install burglar alarms in their homes. Revenue in the amount of $9,235 was generated. Permit fees on electrical, plumbing and mechanical were increased from $25 to $30 in fiscal year 1992, thus generating some additional revenue. 1991 1992 PERCENT PERCENT INCREASE TO TO (DECREASE) REVENUE SOURCES AMOUNT TOTAL AMOUNT TOTAL OVER 1991 Taxes (all sources) $3,605,607 51.4% $3,737,604 50.4Z $131,997 Licenses and permits 116,836 1.7% 133,284 1.8Z 16,448 Intergovernmental revenue 885,653 12.6% 883,719 11.9Z ( 1,934) Charges for services 1,553,224 22.1% 1,826,078 24.6Z 272,854 Fines and forfeitures 96,444 1.4% 79,718 1.1Z (16,726) Miscellaneous revenue 760,582 10.8% 753.563 10.22 ( 7.019) Totals §7,016,346 100.0% 7 413 966 100.02 395 620 REVENUE Three revenue sources experienced significant increases during the fiscal year. In the category of Charges for Services, there is an increase of $272,854. This increase is due to higher charges for sanitation services, and an increase in Recreation user fees. Total property taxes increased by $112,601. The total taxable property valuation of $318 million remains level with the preceding year. The Village's ad valorem property tax millage rate for fiscal year 1992 was 7.99 mills (tax per $1,000 of taxable assessed valuation), increased from 7.79 for fiscal year 1991. Of these 7.99 mills, half a mill or $151,970 was voted by Miami Shores Citizens to raise the revenue to build permanent landscaped street closures. In fiscal year 1992, the City also imposed a 10% utility tax on water which brought in $60, 000 in revenue. In fiscal year 1992, an alarm permit was required for homeowners who install burglar alarms in their homes. Revenue in the amount of $9,235 was generated. Permit fees on electrical, plumbing and mechanical were increased from $25 to $30 in fiscal year 1992, thus generating some additional revenue. Ms. Gail Macdonald Village Manager Miami Shores Village EXPENDITURES Operating expenditures for General Fund governmental purposes amounted to $7,120,982, an increase of 3% over the preceding year. The expenditures for the major functions of the Village are shown in the following tabulation: The decrease in General government is due to the settlement in fiscal year 1991 of the golf course lawsuit which required the Country Club to reconfigure the driving range. This project required $300,000. Also due to budget cuts, the Downtown Revitalization Department was eliminated in Fiscal Year 1992. The increase in Public Safety is due to hurricane expenses for security and safety in the amount of $60,000. In fiscal year 1992, the City also received a Blue Halo grant shared with 3 other municipalities, and the City expensed $33,000 of this grant. Pension contributions from the City to the Plan for the Police Department increased $50,000 in fiscal year 1992, from 8.2% of payroll to 11.8% of payroll. The increase in public services is mainly due to hurricane debris clearance for overtime of City crews, and contractual services. Total fund balance of the General Fund at September 30, 1992 was $1,334,205 as compared to $1,365,349 at September 30, 1991. Presented below is an analysis of General Fund expendable resources designated for capital outlay at September 30, 1992: Total Fund Balance - September 30, 1992 $1.334.205 Less: Fund balance - reserved for encumbrances 279,271 Designated fund balance maintained for emergencies and contingencies 745,434 Reserve for Prepaid Expenses 86,412 1. 111,11 SUBTOTAL - DESIGNATED FOR CAPITAL OUTLAY 223.088 Less: Other asset balances included in fund balance which do not represent expendable resources - Inventories (gasoline, oil and recreation items for resale) 41,453 Petty cash 1.810 43.263 EXPENDABLE RESOURCES AVAILABLE FOR CAPITAL OUTLAY $ 179,826 -4- 1991 1992 PERCENT PERCENT INCREASE TO TO (DECREASE) EXPENDITURES AMOUNT TOTAL AMOUNT TOTAL OVER 1991 General government $1,062,032 15.3% $ 710,730 10.0% $(351,302) Public safety 2,517,590 36.3% 2,700,073 37.92 182,483 Public services 1,790,512 25.8% 2,177,650 30.62 387,138 Culture /recreation 1,216,429 17.6% 1,203,495 16.92 ( 12,934) Debt service 348.289 5.0% 329.034 4.6Z ( 19.255) Totals $6,934.852 100.0% $7.120.982 100.0% LItLL32 The decrease in General government is due to the settlement in fiscal year 1991 of the golf course lawsuit which required the Country Club to reconfigure the driving range. This project required $300,000. Also due to budget cuts, the Downtown Revitalization Department was eliminated in Fiscal Year 1992. The increase in Public Safety is due to hurricane expenses for security and safety in the amount of $60,000. In fiscal year 1992, the City also received a Blue Halo grant shared with 3 other municipalities, and the City expensed $33,000 of this grant. Pension contributions from the City to the Plan for the Police Department increased $50,000 in fiscal year 1992, from 8.2% of payroll to 11.8% of payroll. The increase in public services is mainly due to hurricane debris clearance for overtime of City crews, and contractual services. Total fund balance of the General Fund at September 30, 1992 was $1,334,205 as compared to $1,365,349 at September 30, 1991. Presented below is an analysis of General Fund expendable resources designated for capital outlay at September 30, 1992: Total Fund Balance - September 30, 1992 $1.334.205 Less: Fund balance - reserved for encumbrances 279,271 Designated fund balance maintained for emergencies and contingencies 745,434 Reserve for Prepaid Expenses 86,412 1. 111,11 SUBTOTAL - DESIGNATED FOR CAPITAL OUTLAY 223.088 Less: Other asset balances included in fund balance which do not represent expendable resources - Inventories (gasoline, oil and recreation items for resale) 41,453 Petty cash 1.810 43.263 EXPENDABLE RESOURCES AVAILABLE FOR CAPITAL OUTLAY $ 179,826 -4- Ms. Gail Macdonald Village Manager Miami Shores Village CAPITAL PROJECTS FUND In fiscal year 1991, the Village has commenced the Capital Projects Fund. In fiscal year 1992, $277,500 was transferred from General Fund to Capital Projects Fund for funding of acquisition of equipment, construction of capital facilities, and to set up contingencies for future projects. Expenditures Amount General Government $ 56,002 Public Safety 33,916 Public Services 142,113 Culture /Recreation 45,469 Downtown crosswalk pavers were completed under General Government in the amount of $56,002. Other improvements of the City include a new gasoline tank that complied with the Environment Protection Act requirements in the amount of $82,113; purchase of a chipper in the amount of $91,397 and renovation of the municipal pool in the amount of $34,889. PROPRIETARY OPERATIONS - INTERNAL SERVICE FUND Commencing in fiscal year 1990, the Village instituted a protected self - insurance program with a self- insurance retention of $50,000 per occurrence and an aggregate loss reserve fund of $400,000. For fiscal year 1992, excess coverage premiums, state fees and management fees totalled $238,613, claims of $118,104 were paid and $160,210 was reserved for future claims. As of September 30, 1992, $100,000 was reserved for IBNR (incurred but not reported claims) resulting in a fund equity of $142,461. GENERAL FIXED ASSETS ACCOUNT GROUP As of September 30, 1991, the General Fixed Assets group includes all assets used in performance of general governmental functions and the Country Club. Since the Club was leased in March, 1990 all assets belonging to the Club were transferred to the General Fixed Assets Account Group. Depreciation of Country Club Assets was calculated until September 30, 1989. A total of $1,347,119 Country Club assets (Land - $580,917, Buildings - $347,417, Improvements Other Than Buildings - $261,763 and Equipment - $157,022) were transferred to the General Fixed Assets Account Group. As of September 30, 1992 the Villages' General Fixed Assets amount to $6,754,275. The total amount represents the original cost or estimated cost of the assets and bears no relation to their present value except for the assets transferred from the Country Club, which were depreciated to the date of transfer. Depreciation is not computed in the General Fixed Assets Account Group. FIDUCIARY OPERATIONS The Miami Shores Village Pension Plan is governed by a Board of Trustees appointed by the Village Council and which is responsible for the administration of the plan. The Village is responsible for funding any actuarial deficiency which may arise. -5- Ms. Gail Macdonald Village Manager Miami Shores Village During the year, the Pension Fund revenues were derived from State of Florida contributions for the police officers of $21,528, employee contributions of $207,219, Village contributions of $217,043 and net investment earnings of $754,671. Fund balance at the end of the year amounted to $8,464,145, as compared to $7,620,406 for the preceding year. DEBT ADMINISTRATION During the year ended September 30, 1987, Miami Shores Village and Miami Shores Country Club entered into a 10 year lease financing commitment for a total drawdown of $1,475,000 over a two -year period. On September 25, 1989, Miami Shores Village entered into a seven -year master lease agreement under which the Village borrowed $153,000. Funds were used for capital acquisitions. In 1991, the City issued revenue bonds to fund the purchase of the streetsweeper at $83,782; crosswalk paving at $60,000 and the driving range project of $300,000. RISK MANAGEMENT Commencing in fiscal year 1990, Miami Shores Village is functioning under a protected self - insurance program. The premium quoted by Florida League of Cities for fiscal year 1990 was $633,642. Under our new program, the City paid $238,613 in premiums and administrative fees and experienced total payments of claims of $294,646 from fiscal year 1990 to fiscal year 1992. PROSPECTS FOR THE FUTURE Miami Shores Village is one of the older, well established communities in South Florida. The Village is fully developed with very little new construction activity. As a consequence of these conditions, this Village is faced with the problem of a static revenue base. This community also supports several churches and a private religion educational institution which have removed property from the Village's tax rolls. As the educational institution has expanded, additional land has been removed from the tax rolls. All of these factors place the Village of Miami Shores in an unfavorable position with respect to future tax revenues. The Village currently levies a millage rate of 9.12, (of which half a mill is to replenish the hurricane fund, and .35 mill for streets closure) while Florida statutes impose a cap on millage rates at 10 mills. The City Administration is looking into setting up special assessment districts for street resurfacing and sidewalk repair in fiscal year 1993. This will generate additional revenue to fund the programs instead of funding through the General Fund. MAJOR PROJECTS 1. In May 1988, the Village implemented temporary street closures in certain areas of the Village. The residents voted to increase ;i mill in property tax for a period no longer than 5 years beginning fiscal year 1990 to build permanent landscaped street closures. EM Ms. Gail Macdonald Village Manager Miami Shores Village 2. The Council has adopted an engineering plan for the renovation and improvement of the swimming pool over the next ten years. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Miami Shores Village for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 1991. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS A Comprehensive Annual Financial Report of this nature could not have been prepared without the dedicated efforts of all staff members concerned. I would like to express my appreciation to all those who helped to produce this report and for your interest and support in planning and conducting the fiscal operations of the Village. Respectfully submitted, 4A, . , Z/ Patricia Varney Finance Director -7- MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1992 MAYOR Steven Johnson VILLAGE COUNCIL Herb Spahn Stephen K. Loffredo Robert Cook Henry T. Courtney VILLAGE MANAGER Gail Macdonald FINANCE DIRECTOR Patricia Varney VILLAGE ATTORNEY William F. Fann, Jr. VILLAGE AUDITORS Rachlin & Cohen MIAMI SHORES VILLAGE, FLORIDA Vdlage Attorney Personnel/ Deputy Village Clerk Police Department Organizational Chart As of September 30, 1992 Citizens Boards Handicapped Services Planning and Zoning Pension Village Personnel Appeals Council Code Enforcement Historic Preservation Library Fine Arts Recreation Advisory Country Club Advisory Beautification Advisory Downtown Revitalization Village Manager 2/0 Finance Director 5/0 Public Works Recreation General Fund 107137 (manber of fuU4xw /part-wne personnel) *Plus 20 Independent Contractors - Swim Coaches, Tennis Pro and Instructors "Plus three Independent Contract Inspectors -9- Administration only ; :Bitilding ing Library * 3/7 Certificate of Achievement for Excellence in Financial Reporting Presented to Miami Shores Village, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1991 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. NEE �f �9 TWU President GYILAia Y2 cuti L � ve Director -10- Financial Section INDEPENDENT AUDITOR'S REPORT 1320 SOUTH DIXIE HIGHWAY PENTHOUSE CORAL GABLES, FLORIDA 33146 -2964 TELEPHONES: DADE (305) 667-0412 BROWARD (305) 764 -7717 FAX: (305) 665-7456 RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS Independent Auditor's Report To the Honorable Mayor, Village Council and Village Manager Miami Shores Village, Florida 700 SOUTHEAST THIRD AVENUE SUITE 400 FT. LAUDERDALE, FLORIDA 33316 -1102 TELEPHONES: BROWARD (305) 764 -7717 DADE (305) 667 -0412 FAX: (305) 764-7835 We have audited the accompanying general purpose financial statements of the Miami Shores Village, Florida, and the combining and individual fund and account group financial statements and schedules of the Miami Shores Village, Florida as of September 30, 1992 and for the year then ended, as listed in the table of contents. These general purpose financial statements and the supplemental statements and schedules are the responsibility of the Village's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller 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 opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Miami Shores Village, Florida at September 30, 1992 and the results of its operations, and the cash flows of its proprietary and similar trust fund types for the year then ended, in conformity with generally accepted accounting principles. Also, in our opinion, the combining and individual fund and account group financial statements and schedules referred to above present fairly, in all material respects, the financial position of each of the individual funds and account groups of the Miami Shores Village, Florida as of September 30, 1992 and the results of operations of such funds and the cash flows of the proprietary and similar trust fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining and individual fund and account group financial statements and schedules. The financial information listed in the statistical section in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the Miami Shores Village, Florida. Such information has not been subjected to auditing procedures sufficient to enable us to express an opinion as to the fairness of all the information included therein and, accordingly, we do not express an opinion thereon. 44J4-t-1 ✓ ,4VI-1 Coral Gables, Florida January 22, 1993 -13- MEMBER OF SUMMIT INTERNATIONAL ASSOCIATES, INC. WITH OFFICES IN PRINCIPAL CITIES THROUGHOUT THE WORLD. MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRIVATE COMPANIES PRACTICE SECTION MEMBER OF THE FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED FINANCIAL STATEMENTS - OVERVIEW) -16- (D OD N N %n to v) ID rl n tD Cl) V) m m O) m in w O m tD rt m m .T 1 v H O N n -T OD N Cl) m m V) V) n v 'i s W 'i V 1D t0 r1 O q N O) - O) V) W O (q n O to 0) r1 O m 1-4 O e-1 .T .7 O J O) t0 H 'a J .'r N .T .-I OT OD IA 'i O r1 O m V) tD V) O N n o r1 (O to. O) 14 +n O .tn�a F q PW� ow F' a + ID to tD o to h m rl rl In � 00 m +r W N m h O N w -f in N O m n In .r N Ol m In m 0) m -f 11 m O n O m N V; O rl O N O m N h m t O I 1 N rl rl .tr w tb O H O in O 1` qtr N n n In Q) N O qtr t0 n N in n O m t0 m N tO v N rl N ti O N N F MCI I I I 1 1 1 I I 1 1 I 1 I I I m 0 n m 0 n to W I W a z n n n n z � w z ot�o m m a F z .-1 h ri O N tU-) z X twi) 1 I I I I I 1 I I I 1 OD 0 O IT I v 6 W H to N In n rl V) C7 44 C n o m W n N N r1 N tD q W >I V) ID to N to Cl to O %n H O 6 H U I I 1 1 I 1 I 1 1 I 1 1 E. O F F z 5 f/J W V) V1 'i O N O m N N tD En q q ] U 1-4 N S tD m P4 OD W '� U m m H pG, OF Ur a N F D.' a O I I 1 I 1 1 I I I tV 1 I I I 1 tND w z o H vi C �4 fW/J a w cxn O W W U E/3 F n o n h U F U H W z tD I I 1 I 1 I I I I 1 I 1 I I 1 tD A W U N N > w Q W P4 OY) 01 Ln h N m -n -4 04 W z p-I 1 I I '-I - O 1 to - N r1 to V1 O v N z <0 m a Qi m U 1 .10 '4 U t7 m H Pq m O A H A m H d O m > mC. a� z U _ m to 0 .. m q 00 F m ow m W H W W L) L) O q u Z G x m '�. V 43 O m H Fy W m .m-I m G D 'm-1 A 000 F N A m O 4) > 43 O N m 0 > a0) V yE� 44 p m F H H A F A O v M O w W 0 N N U H 0 s @ ID b b C m .0 . 4 - 4 m '- 0 m ID 0 CD U 0 m a) m H A O U O U W > O 'O q H m > y 'O m O —1 E 0 q m > (.. O U ll 4 0 e0 q m m A +) 0 m O H m .- 1 O 0 R a) m m +i m m H m 0 O 4 O P I m y P I W m O m W O 4- � m q Z Z m 'I F A r U ~ m g -,4 O �'mi U +) 0 m 4 _ O W m ' ♦) H m E m m 0 L) m d 'O E w O O z m F E R 4 0 E. a� +i It A 43 0 m W $4 m '.7 O 8 O m U 0 $4 W C. m m W 'O 'O H O ra E LL ++ 43 4 0 0 0 z to F m D '-I v 7 R ++ m O E � W U H q .9 C E Q m H W .4 m H W CE -16- d A H a W H W x x H -1�- N z d F y Qi H U z H W H N W H °z z H U U d W W In O N O) m n t0 n n .-I N a N a 0 o n a 0 0 m m 10 O n 10 n 10 O to R t0 n In o co 00 n 0 n O .� N O) N t0 v11 .-1 O) o .-1 00 O) >+ O) O N n m 0 n O ra n IPI N O n N O to '-I -I O In h 0 • W rd O 10 a m 0 t7 n a 0 N m I" 1 In N 0 a Ln m .-1 O I-1 a O N P1 N a f0 a ri m a n n -4 Co O N y a N m w n In i 00 .4 H FpD W N'0'07on tDO0 hN 10 hN 0Nm Om1+1 £ W Nam O h m e1 m n I-I 17 f 0 0 n m d t I.1 O n N N N rl 0 O EW£W fn P1 rl m N O V1 P1 O O o R1 N n I-i t Of P1 V1 i0 Of R1 ONfI m mOmOmninwm0w OFNmnham N n dN &M -W Otmm.rm n m m N Y9hm H-r 1-1 l in 0 N pl rl t7NhN�1+1m N N -I f'0 N 01nN -r Rf 10 m n O I-I N N F 0 rl a aP O co r- r1 m 0101 n h 17 O O m n to 0 n F Pa I 1 - I I - 1 I 1 1 1 1 I I I 1 1 I N W I W Pw z O A 0 n N t0 Y'1 O In a c0 n n n n ❑wz � cn Nam to � .4 N F In In U 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I l z k E12 I tD N > to q N 10 m a m N Y1 1n a to to a s O n t� O O a F H z O) m N n a 10 a t0 T ]GO t0 10 N n C/] z Q: Qi w i ao m � w •F w N Ln N ~ a 4-1 fV-1 W H 1 1 I I I 1 1 I .-1 O N 1 N 1 I 1 1 I 1 1 I N a 10 N t0 N a 11 a .d 0 a rC[-4 z H v yO OU F m m o cn v n vni N I I I 1 1 I I I 1 N ID I 1 1 1 1 tn 1 QI, H a a .Wr-1 a U O � N N � W Z U V] `may W O �w coLnm m n m h m o O) - p-I N~ m I I 1 I I 1 n I I N I? 1 I 1 C �4 N 1Q7i N O N t0 . i O) t0 M h a h co NN m N n M m (Q fw9 N Inn T N N N Z z N H O U x i1 V m u O W z m m G m _ ¢ O A {(aj +) m O CD v +1 G b U .-0 .1 b .G 10 o p O m 4"1 N q 47 y 0 4.1 W W 01 O z O m a.m+ H 07 >.I 4 W W O Am W m m F 60 O .,ml O O O 01 ZH � W Y O W .1 0 -4 GO z -4 4 ti h 1+ p t O 14 14 ..fi•.+G 0) 01 LI m ) tmF yj WO N o tA > a O N d �i A N TU „ G {� ++4 W { -mm 1 F '+m F m Z q F 01 0 0 -i 1 d RgL m m . w G G ) m .1 a) % +01CGmN m . > W 0E '1 i 0 0 m A W O + m CO v �N a) O + N m .O F 0 0 O +fi l�a F 4 o m v A N m m H 'H O 4.3 'U W .0 mb.- L m m N m k 0 m N x A m 4 0 0wwa'040O G G 4 m 0 A m G 0 m W 7 a) N H 14 A h +1 W' S O 0 m 1) O H .0 0w O w 0 0.0 U m 0 6 c.4 W 0 6U000 £ £ 0 am b G M G m� HPCw a U CY w -1�- N z d F y Qi H U z H W H N W H °z z H U U d W W A H w 6w r-� a H D M W 1:4 O x t!1 H H W U tq A z H F W W U H �w U Pq A A z w C„ a w� A H A z W W P Pa W � F Uj A wR Wa w � fyi F z ww O F w z� w O w � �a F � A W z H r O U to W N\OMCr, O M M 1O H M M O Q F 10 r-MO O 00MNM OMr-i t- r-1 NN 00 01 r- co a OMtf1NMMON co O N%Ocr'1H N�.Otl1 M \O 0000 - - - - t, %0 00 10 ,_I %J 00 %�D N �0 m 00 H r- Lr) �.O N O M -It t\ r- r-q 10 00 A m H H - I 00 M I O Ln � 1D m Ill 'D tf1 M O O N m 00 tf1 �O tz r4 00 1 M M 1 1 1 a A ^ r-1 O r-1 00 to O t!1 H r- tr) l0 M 00 �O 00 rl � M M O� `z z l0-4 W Ln HMSO ODD 00N N r4 V) M 10 -It H r- to 10 O OW M - - 00 - - ^ - r-1 .. M Lfl CA M r-I �O H N r-1 r-4- H 4 H t� C,4 z�H Ra A CN M Ln WtY, NO W O N OA?+ 11 It m 00 00 M1.0 O M O Ln 10 00 N N 00 00 N m Ln O 00 H t- r-i 1D �.O F 00 N N It O 10 N r- O tl- to M t- O 1D It N 00 m m 0%Or4 %ON r-1 NNcn 1-O 100000 N � IlMM1D0-MM 0- 0 r�M I 0000 co N H U OOr-1\OOt1 W It cnr-1O.0N ONO M M 00 N t\ tf1 H It ON 00 M M NI 1DNIl0-tMIt t� r-f 00 00 t- �t I- I- I- cn NOOIt N O M Ot O V) . . HO W m 1`MM10MO'cM . .. . 10tf1MLnO OO1\ 10 1 I 1 10 0% %D -4 M M 0O N O 1D M 10 It .-i If1 10 CD T t- tf1 Ln O% ui r -4 co co O r 1` n M N N �t N N IA co n � 4) to to W N\OMCr, O M M 1O H M M O Q F 10 O H I-4 1D O O � t- N t-- 00 cf1 O O\ r4 �t lry a -It 't co O 00 M 00 N N - - - - N 10 r- t- P4 I"7 M r-I Ln M M r-q 10 00 � H H t` 00 M � O Ln � 1D r-I N N N �t .914 C, F a W 1 1 1 I - 1 1 1 �V) 1 H F A cn M 10 O H 10 O 00 r-1 N M Lfl H 10 t� C,4 z�H Ra A CN M Ln WtY, NO W O N C7 11 It m 00 00 M1.0 O M O Ln 10 00 N N 00 00 N W WF tl} aEn O O N\OMCr, O O H r-1 H ra N Q F 00 O H I-4 1D O O tf1 t!1 tP1 N t-- F U O O O O\ r4 �t lry tf1 -It 't M H W 1 1 1 1 1 - - - - P4 I"7 O1 C31, lO M N to t-� 00 M M r-q l0 H H t!1 M O U r-I N N M M N N a W �V) z�H Ra A W O C7 11 It m 00 00 M1.0 O M O Ln 10 00 N 00 00 m Ln O 00 H t- r-i 1D �.O M rl- Ln M O N 00 00 N N It O 10 N r- O tl- to M t- O 1D It N 00 m m r-1 r-1 r-1 M N W IlMM1D0-MM 0- 0 r�M I 0000 N -d I't H Ln It M M 00 N t\ tf1 H H O rl- 0 co It 04 ON N N M lO M W t� r-f 00 00 t- �t r� r� H N N H N M M M M M -4 r_ N N H rl n � 4) to to v 0 O cd a) �4 r• O a) K �+ a) 4J to a) a) to .Oi 0 Co 4) 4a G > v r-1 .r.1 > N O 3-I a) to to a) G U N D �Otn cd >, ma�itnaNi 1) P a) >4 G a� p waa)) p G 0 4a �•�cFticdd y G 4-+ a) .G -I H '� 7 d y 1.1 } 1 r4 0 ^ U •r1 , 1 � Cl) PL 44 0 to to a) G rw 4-4 O 0))4- jPaaiwgz w�,ucl)i+N'z'41 0 >, U 0LI)u to .-. 9,�bO ao b G a G a) 4a d 'dQ) NOV)ai O 4J .r., P U" O d ;> (L) UU p a a) G a) to G a) coElX W S4 U S G GO•r1 a) a) � U G )-1 4-1 O 7-1 044 �1 a) "" t x CD td a) P O U H N "'q a) 0 41 G 41 P 0 Co U •, G - - td �+ O 4) (L) 4a b G H to to \ P " 4 td 1.) y r 4 a) PL4 7 a, w U P 'A 44 b U td "4 N U y U `�� P141CdNa) bb m cad 0,o G .,G.1 c� tobl)(L) ,-10 r-ai -44 c*a)o �b' U Cdd W to G w h0 to m F x r. U G .f] .a r-I a-' ra 11 F �c7awU•aInaH " G to a. .,a 0 a) F 0 • • G i4 w G H H cU41 co to �+ cd •r1 G .c •rl •r1 G '� co a) 4)) }+ P. �+ to •r1 1.) 'b .o 'b a) FaH = u z UU UA a) a) UOR+ U44 0 W W W PU4 O W f� -18- -19- t/ z w Q H C/1 Qi H U H W O Ei W w E-I zz z H O U w w rn W (wj ,w4 _ n Y n N o ►1 f0 rl " 0 ""I O n rl O n n ,C7, PPCg4 17 �O l7 O) �0 C7 ED OYNtO NIM 10 n O Y 1-1 mnu1N {+! Y'1 O N n V1 N Yrl N O O O O N w h N en I N O^ I 'Oj 6 > 6 w 1F0 n M Y IA co .Oef 1N0 N IV! to t D N N rl In7 v v v O YY 0)OOmO N0)NY to ON Y n n n n n O n a OO Nn.i to'o t0 N n O n 0 0 NC. t0 n Of n O! O NO N O Y O Y n n I ID t0 o O n n n h al neo lnOO)NN t0 t707O 000 r N t0 O F U 1n en co N n n th nNOm nY t0 e7 N Y nnNN O Y 0 N � N [n O IA O to C rl n N N ri n rl F � en H O q rIO NNOrIn 0000) nOO r, eo rlO Of O O Y O co n 0 h d -801- O N N n N Y n n n t0 O Y n O r1 0 rl 10 N N N O Y In Y O h n n -I Cw7 N N I tp/O P4 Pq9 n m co 0n0 ��-1 N 007 00 n tm0 m N Y O N� VOf YO1 en H rl n N N N N n 14 �. N N N N In in "o, U a en Y rl V1 rl tD ri ri r is O 14 N NN- N H v w� N to j H O U W N W O o O o N O to W O N .-/ t0 wool O IA rl .-I U1 V1 r Y rl In Co rl N Y N n N ° t l l l l o 0 o to .a Y 1 1 I �� 'm In m r —C N t0 N N N M tN9 N N H z O F M p-1 � z W C U A q nn O)onN Ol N rj W H N w t0 t0 N N Y rl 0 O V!. Y O en N n O N IA n r Y O N Y N Y W H t7 �j I I I I I 1P1 V1 - • • C Y1 n n I I I rl �-1 a {P•4) eq �r-I N N O VN1 h N VN1 N N WN z W y O %6 n Y n v1 N N Y .� n N rl n o O rl W 7 Qn to 'I „eIN rl N n n Y Y Y pQA q O en rl n t 9 .Y -I W -1 t .rY �rt-o I O I I 7 +rhN to YY N- m mNto � Y0 A Y N l to z r cOn H W' Ej w y v v v v wa H Q E- En U � r r 0) O e0 N t0 0 0 n w to O en O IA N n 7n 0) t0 O N O N co r O O O r 0) Lnil W W rl rl t0 N n O n v1 07 n O t0 Y N O 0 rl N A a �1 < NNt0 mm m OOnN OOO i N N H N N O N n 0 rl rl O n 0 N O r N N N V to N z rl n N N rl n rt N U I O U rl O N N O Y O Co O rl 10 n CO rl to 0 0 07 0) q YOOn 000 IAONO) ONO 0) 0) O) r Y WF t0OYn OnY nenOrl NOrt N N N N N �I O N Of �-1 In O t0 07 O V1 V1 O O O O 07 I O O O) 07 1 V1 t0 V1 tO q q to N en n hn O O nr1OOHN Of O d Of O nANM O Y co N Y r Y Y en N O to rl '+ n N N rl n N .� N y y H H G > .. 40 G +) 0 > y :n y 7 m 1. y N h o v N F 'O O b G 0 W m m m O N O e0 en 0 +) G H eD to W •� W a) N tD H E O 4) W W7 N W O m m !1 W p C y N Nm C W G to W y t0 41 m y 7a y > > tW o > +v : i F b 0 00 e0 O N m m 14 43 N v ) y u W O G 00 m 0 0 W ,0 m 0 ltG O W ID y\ - 4J meD - ,4 )a W W 0 O ) 0 4 0 0 W W 0 etl 0 0 m G m i G G W W y p 0 0 60 0 LI +I 4 0 a eo .4 .d a) 0 O H 41 y G m p m y) p +i t.L +1 p y ++O .G +� 0 -4 •-1 m 7n G H 00 0 �N " O O p A O A tl G 7 m K tO 0 N a G 0 +) 0) W 7 C9 w U 4 W G A W I-e 14 y to p , t0 o y tO G d t0 to -4 G -H +i m 7 0 e0 > O tD W p, C V GN O W E F G � F a F-I W£ U q K O k O O W. W w O W W W -19- t/ z w Q H C/1 Qi H U H W O Ei W w E-I zz z H O U w w rn -20- O m O ol� fl- Cl) O) m O �D \D %D ON u'1 O r` 00 ul N r-4 %D O ul m M 00 N H ' 4 O r- u1 c+1 m cn O) H Ul cn CN cn m _ _ W m O O � Ln, cn O% r- N N r-1 N %.D V7 m N m '-4 m m N N ra 4 to It cn O 00 -t N rl O r-r Ln %.D «-] W - Q, O o z r-r ra r 4 ra lD t\ as w En FrEw 0 -� F En u O O -4 ra f- N O O% N O% ON 1-1 u1 %D I w N O� f� %D 0 r4 O N Cn N %D %D O% r4 O H . C" u1 P- 'D C� r. O f.� U1 .--1 ra ID C� 149 H O% W r4 -4 Ln �7 r4 %D N �t cn 0o 00 0o n %D Z VD u1 %o Ln .-4 -4 t N N %D r1 O P. �t P. %D en r-4 N rl 0% O% %D %O q r ao W F z rn H p Q, L1�i F F y� cn C4 z O H N O N 01% m CD u, -4 HW �-q m rn r� %D O N N cn + O It H t` � O r� r` t\ r� It r4 H .�- , 1 WO z W H w H F Ln t O N �D cn Cl) O cn Z PW-i ir1 O H u'1 -17 -17 N �D W Pa 44 r, N r-i N to 0o co %D rn H q W F W rn 04 W A H U z O O r\ r` ?.. z M W W W' H R+ W O O —4 r-r cn 00 rn rn �D �D N u, m O r-r %D y.� u ) �n r` r\ r, r-+ H m ut � r i �� E-4 V) Z w ra r 1 �O %D �O �D ir1 ir1 O O O � rl� N a� ti En �..' W a+ q '� Qj H 0 954 `� [s, z Ri t!Y �7 r1 cn r-I N N N r-1 -4 �1 r-1 W H a W w 0l �zw zLn W O H rx ww xa w ca F d a� 4-4 W G En G 0 w Q)) a G ay) > G cad 7, m axi 4-4 G w �+ G 4-a F vi o �' °� G •, w a�i u G ��, a�i z U eo to fd co bo co a� H t!! MI a) G y a) }•I G y w a) 0 41 a) 7 a v, En � a G W s4 o° bb U d a o U G ° `d � � Cd ct �4 q w � a• .a . cd rd Q) -4 U v) H 1j 1� ,-{ Q) a) a) G Q) -,-1 � 4 G Cdd -4 •tea 4 G � o b C3 F Cd G a F y G � O A F rGi rGi p p aU U H aH En ca O H a N a) a) o O o z z x fx -20- MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES INTERNAL SERVICE FUND FISCAL YEAR ENDED SEPTEMBER 30, 1992 1991 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers /users $474,935 $ 420,000 Cash payments to suppliers (299,594) (382,280) Net cash provided by operating activities 175,341 37,720 CASH FLOWS FROM INVESTING ACTIVITIES: Investment income 20,169 22,136 Net cash provided by investing activities 20,169 22,136 NET INCREASE IN CASH 195,510 59,856 EQUITY IN POOLED CASH AND INVESTMENTS, BEGINNING OF YEAR 206,798 146,942 EQUITY IN POOLED CASH AND INVESTMENTS, END OF YEAR 402 308 $ 206,798 ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $104,783 $( 4,627) Changes in assets and liabilities: (Increase) decrease in miscellaneous receivables 13,435 ( 13,435) Increase in prepaid expenses (2,314) - Decrease in accounts payable and accrued liabilities (2,724) ( 11,986) Increase in estimated claims insurance 62,161 67,768 Total adjustments 70,558 42,347 Net cash provided by operating activities S 175,341 $ 37,720 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -21- NOTES TO FINANCIAL STATEMENTS MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS FISCAL YEAR ENDED SEPTEMBER 30, 1992 A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Miami Shores Village (the Village) is a political subdivision of the State of Florida. The Village, which was incorporated in 1932 is located in Dade County. The Village operates under a Council- Manager form of government. The legislative branch of the Village is composed of a five (5) member elected Council, including a Village -wide elected mayor. The Village Council is governed by the Village Charter and by state and local laws and regulations. The Village Council is responsible for the establishment and adoption of policy. The execution of such policy is the responsibility of the Council- appointed Village Manager. 1. Financial Reporting Entity The accompanying financial statements present the financial position, results of operations and cash flows of the applicable fund types and account groups governed by the Village Council of Miami Shores Village, Florida in accordance with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board. The reporting entity for the Village includes all functions of government in which the Village Council exercises oversight responsibility. Oversight responsibility includes, but is not limited to, financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. The following is a summary of the more significant policies. 2. Fund Accounting The accounts of the Village are organized and operated on the basis of funds and account groups, each of which is considered a separate accounting entity, with a self - balancing set of accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The purpose of the Village's various funds and account groups is as follows: GOVERNMENTAL FUND TYPES The GENERAL FUND is used to account for all financial resources except those that are required to be accounted for in other funds. The General Fund is the primary operating fund of the Village. The CAPITAL PROJECTS FUND is used to account for financial resources to be used for the acquisition of equipment and construction of major capital facilities and improvements. _1) z_ A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2. Fund Accounting (Continued) PROPRIETARY FUNDS THE INTERNAL SERVICE FUND is used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. The Village has one Internal Service Fund called the Self Insurance Fund. FIDUCIARY FUNDS THE TRUST FUNDS are used to account for assets held by the Village in a trustee capacity for individuals, private organizations, other governments and /or other funds. The Village has three expendable trust funds (the General Trust, Law Enforcement Training Trust, Police Forfeitures Trust), and a nonexpendable trust fund (Pension Trust Fund) . THE AGENCY FUND is used to account for assets held in a trustee capacity or as an agent for government employees and /or other funds. The Village has one agency fund, the Deferred Compensation Fund. ACCOUNT GROUPS These comprise a fourth category of accounting entities that are used to establish control and accountability over the Village's general fixed assets and the unmatured principal of its general long -term debt. Accordingly, the Village maintains a GENERAL FIXED ASSET ACCOUNT GROUP and a GENERAL LONG -TERM DEBT ACCOUNT GROUP. 3. Measurement Focus (a) GOVERNMENTAL FUNDS The general fund is accounted for on a "spending" or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on the balance sheet. Accordingly, the reported undesignated fund balance (net current assets) is considered a measure of available, spendable or appropriable resources. Governmental fund type operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. (b) PROPRIETARY FUNDS The Village's internal fund was accounted for on an "income determination" measurement focus. Accordingly, all assets and liabilities were included on the balance sheet, and the reported fund equity (total reported assets less total reported liabilities) provides an indication of the economic net worth of the fund. the operating statement of the proprietary fund type (on an income determination measurement focus) reports increases (revenues) and decreases (expenses) in total economic net worth. -24- A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 3. Measurement Focus (Continued) (c) FIDUCIARY FUNDS Expendable Trust Funds are accounted for in a manner similar to that of governmental fund types. Pension Trust and Agency Funds are accounted for as follows. The Pension Trust Fund is accounted for in a manner similar to proprietary fund types. The Agency Fund is custodial in nature (assets equal liabilities) and does not involve measurement of results of operations. (d) ACCOUNT GROUPS The General Long -Term Debt and General are concerned only with the measurement are not involved with the measuremen Long -term indebtedness is accounted Debt Account Group. Fixed assets are Fixed Assets Account Group. 4. Basis of Accounting Fixed Assets Account Groups of financial position. They t of results of operations. for in the General Long -Term accounted for in the General The basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they are susceptible to accrual, when they become measurable and available as net current assets. Primary revenues, including taxes, intergovernmental revenues, charges for services, rents and interest, are treated as susceptible to accrual under the modified accrual basis. Other revenue sources are not considered measurable and available, and are not treated as susceptible to accrual. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is principal and interest on general long -term debt, sick pay and workers compensation which is'recognized when due. The Proprietary Funds and the Pension Trust Fund are accounted for using the accrual basis of accounting. Under this method, revenues are recognized when they are earned, and expenses are recognized when they are incurred. The Village's other Fiduciary Funds (Expendable Trusts and Agency Funds) are accounted for on the modified accrual basis. 5. Equity in Pooled Cash and Investments The Village maintains a pooled cash and investments account for all funds except the Pension Trust and Deferred Compensation Agency Fund. This enables the Village to invest large amounts of idle cash for short periods -25- A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 5. Equity in Pooled Cash and Investments (Continued) of time and to optimize earnings potential. Equity in pooled cash and investments represents the amount owned by each fund of the Village. Cash and investments held in the Village's Pension Trust and Deferred Compensation Agency Fund are managed by trustees. Such amounts are reported separately on the Combined Balance Sheet - All Fund Types and Account Groups. Investments in Governmental Fund Types and all Fiduciary Funds except the Pension and Agency Funds are stated at cost and consist of amounts on deposit with the Florida State Board of Administration Local Government Investment Pool and non - negotiable Certificates of Deposit. Investments of the Village's Deferred Compensation Agency Fund are stated at market and consist of mutual funds. Cash includes amounts in demand deposits as well as short -term investments with a maturity date within three months of the date of acquisition. 6. Inventories Inventories are valued at average cost determined on a first -in, first -out basis. Inventories in the General Fund consist of expendable supplies held for consumption. The initial cost is recorded as an asset at the time the individual inventory items are purchased and is charged against operations in the period when used (consumption method). 7. Fixed Assets Fixed assets purchased in the Governmental Fund Types are recorded as expenditures at the time of purchase. Such assets are capitalized at historical cost in the General Fixed Assets Account Group, except for public domain ( "infrastructure ") general fixed assets, consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Donated fixed assets are recorded in the General Fixed Assets Account Group at their fair market value at the time received. Depreciation is not required and has not been provided on general fixed assets. S. Compensated Absences The Village records compensated absences for accrued sick leave in the Governmental Fund Types as an expenditure for the amount accrued during the year that would normally be liquidated with expendable available financial resources. The remainder of the liability is reported in the General Long -Term Debt Account Group. 9. Deferred Revenues Revenues collected in advance are deferred and recognized as income in the period earned. In the General Fund, deferred revenues consist of Federal Emergency Management Agency (FEMA) grant funds received in advance, prepaid occupational licenses and refuse collection fees received that have been budgeted to pay expenditures of the subsequent fiscal year. -26- A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 10. Encumbrances Encumbrances are recorded at the time a purchase order or other commitment is entered into. Encumbrances outstanding at year -end, if any, represent the estimated amount of expenditures to result if uncompleted purchase orders and other commitments at year -end are completed. Appropriations lapse at year -end; however, the Village generally intends to honor purchase orders and other commitments in process. As a result, encumbrances outstanding at year -end are reported as reservations of fund balance since they do not constitute expenditures or liabilities. 11. Fund Balances Fund balances are reserved to indicate that a portion of fund balance /retained earnings is not available for appropriation or is legally segregated for a specific future use. The description of each reserve indicates the purpose for which each was intended. Designated fund balance indicates that a portion of fund equity has been segregated based on proposed plans of the Village. Undesignated fund balance is the portion of fund equity available for any lawful use. 12. Property Taxes Property taxes are assessed as of January 1 of each year and are first billed (levied) and due the following November 1. Under Florida law, the assessment of all properties and the collection of all county, municipal, school board and special district property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws for the State regulating tax assessment are also designed to assure a consistent property valuation method statewide. State statutes permit municipalities to levy property taxes at a rate of up to 10 mills ($10 per $1,000). The millage rate assessed by the Village for the year ended September 30, 1992 was $7.99 per $1,000 of assessed taxable valuation. The tax levy of the Village is established by the Village Council prior to October 1 of each year, and the County Property Appraiser incorporates the millage into the total tax levy, which includes Metropolitan Dade County, Dade County School Board and special district tax requirements. All property is reassessed according to its fair market value as of January 1 of each year. Each assessment roll is submitted to the Executive Director of the State Department of Revenue for review to determine if the rolls meet all of the appropriate requirements of State statutes. All real and tangible personal property taxes are due and payable on November 1 of each year or as soon as practicable thereafter as the assessment roll is certified by the County Property Appraiser. Metropolitan Dade County mails to each property owner on the assessment roll a notice of the taxes due and Metropolitan Dade County also collects the taxes for the Village. Taxes may be paid upon receipt of such notice from Metropolitan Dade County, with discounts at the rate of four percent A. SUbW1ARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 12. Property Taxes (Continued) (4 %) if paid in the month of November, three percent (3 %) if paid in the month of December, two percent (2 %) if paid in the month of January and one percent (1 %) if paid in the month of February. Taxes paid during the month of March are without discount, and all unpaid taxes on real and tangible personal property become delinquent and liens are placed on April 1 of the year following the year in which taxes were assessed. Procedures for the collection of delinquent taxes by Metropolitan Dade County are provided for in the laws of Florida. 13. Budget and Budgetary Accounting The Village Council approves a total expenditure budget based on projected expenditures and revenues for all governmental funds. The budget allocations among the various organizational units are included in the Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual. The Village follows these procedures in establishing the budgetary data reflected in the financial statements. (a) The Village Manager submits to the Council a proposed operating budget for the ensuing fiscal year. The operating budget, includes proposed revenues and expenditures with an explanation regarding each expenditure that is not of a routine nature. (b) Public hearings are conducted to obtain taxpayer comments. (c) Prior to October 1, the budget is legally enacted through passage of an ordinance. (d) The Village Council, by motion, may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated. There were no supplemental appropriations for the year. (e) Formal budgetary integration is employed as a management control device during the year for the General and Capital Projects Funds. (f) Budgets for the General and Capital Projects Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). (g) The Village Manager is authorized to transfer part or all of an unencumbered appropriation balance within departments within a fund; however, any revisions that alter the total appropriations of any department or fund must be approved by the Village Council. The classification detail at which expenditures may not legally exceed appropriations is at the department level. (h) Unspent appropriations lapse at the close of the fiscal year. (i) Budgeted amounts are as originally adopted or as amended. Individual type amendments were not material in relation to the original appropriations. -28- A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 14. Comparative Data Comparative total data for the prior year has been presented in the accompanying financial statements to provide an understanding of changes in the Village's financial position and operations. However, comparative (i.e. , presentation of prior year totals by fund type) data has not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. 15. Memorandum Only - Total Columns Total columns on the various statements which are captioned "Memorandum Only ", aggregate the columnar amounts presented by fund type and account group and are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. B. DEPOSITS At September 30, 1992, the carrying amount of the Village's deposits was $433,857 and the bank balance was $452,317. The entire bank balance was covered by federal depository insurance through maintenance of funds in qualified public depositories. C. INVESTMENTS Village administration is authorized to invest in those instruments authorized by the Florida statutes. The Pension Trust Fund is authorized to invest in equities, preferred stocks rated A or better by Moody's and /or Standard & Poor's, corporate debt securities rated BBB or better from Standard & Poor's and /or Baa or better from Moody's, obligations of the U.S. Government and its fully guaranteed agencies and debt issues convertible to equities. All other funds are authorized to invest in the government trust fund and certificates of deposit only when the yield is 50 basis points above the government trust fund. Investments are classified as to credit risk which are summarized below: Category 1 Insured or collateralized with securities held by the Village or its agents in the Village's name. Category 2 Uninsured and unregistered, with securities held by the counter - party's trust department or agent in the Village's name. Category 3 Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Village's name. -29- C. INVESTMENTS (Continued) Corporate stocks Corporate bonds Collective trust funds: NCNB Real Estate Fund Suntrust Highgrade Equity Suntrust Retirement Reserve Find Investment in State Investment Pool Investment in Deferred Compensation Plan CATEGORY 1 2 3 S - $1,845,789 $ - 1,803,191 1,046,512 - 3,706,473 - 20.816 X8.422.781 Reconciliation of Deposits and Investments Total per note B Total per note C Equity in pooled cash and investments Cash with pension trustee Investments Deferred compensation investments D. FIXED ASSETS CARRYING VALUE S 1,845,789 1,803,191 1,046,512 3,706,473 20.816 S 8.422,781 1,710,208 623.046 &ILI56,035 $ 433,857 10.756.035 $11,189,892 $ 2,083,594 81,286 8,401,966 623.046 $11.189,892 MARKET VALUE $ 1,845,789 1,803,191 1,046,512 3,706,473 20.816 8,422,781 1,710,208 623.046 yS10,756,035 The following is a summary of changes in general fixed assets account group during the fiscal year: Land Buildings Improvements other than buildings Equipment Total BALANCE SEPTEMBER 30, 1991 ADDITIONS $ 718,531 $ - 2,041,643 9,292 1,124,844 245,587 2.614,191 143,674 $6,499,209 398 553 BALANCE SEPTEMBER 30, DELETIONS 1992 $ - $ 718,531 - 2,050,935 - 1,370,431 143.487 2,614,378 143 487 $6.754.275 Depreciation is not required and has not been provided on general fixed assets. E. LONG —TERM INDEBTEDNESS 1. Capital Leases The Village entered into a ten -year Municipal Master Lease Purchase Agreement during August, 1987 and on September 25, 1989, entered into a seven -year master lease agreement for $153,000. Based on these agreements, the Village was able to acquire and capitalize various capital assets on a scheduled basis, as follows: -30- TOTAL GENERAL FUND COUNTRY CLUB Fiscal year September 30: 1987 $ 431,000 $ 305,741 $125,259 1988 771,000 488,300 282,700 1989 426,140 426,140 $1,628,140 $1,220,181 407 959 -30- E. LONG -TERM INDEBTEDNESS (Continued) 1. Capital Leases (Continued) Obligations created under these Master Leases are to be repaid from legally available funds from sources other than ad valorem taxes sufficient to make all payments as they become due. The agreements make provision for termination or governmental non - appropriations, such that the Village will not be obligated to make any further rental payments due beyond the year in which the Village does not appropriate sufficient funds to continue making payments required under the leases. The capital assets acquired under these leases remain collateral for repayment of outstanding principal obligations. Principal and interest repayment terms are set forth in the Master Lease Purchase Agreements and were allocated to the Village's General Fund and Enterprise Fund, respectively until March, 1990 when the Country Club was leased to a third party and the Country Club's portion of the debt was transferred to the General Long -Term Debt Account Group. 2. General Long -Term Debt Changes in general long -term debt during the year are summarized as follows: Capital lease obligations Bonds payable Accrued workers' compensation Accrued sick leave Other BALANCE BALANCE SEPTEMBER 30, SEPTEMBER 30, 1991 ADDITIONS DELETIONS 1992 $ 670,685 $ - 443,782 327,305 17,442 237,300 83,038 5.000 $1.684.072 $100,480 $225,371 $ 445,314 77,744 366,038 40,967 303,780 62,767 257,571 5.000 $406,849 $1.377.703 Maturities on general fund capital lease obligations payable at September 30, 1992 are as follows: PRINCIPAL Fiscal year ending September 30: 1993 $ 93,090 (1) 1994 99,963 V,04 1995 107,344 1996 115,269 1997 29.648 (1) ;,;l,i� 445 314 INTEREST TOTAL $30,186 231313 �21a 15, 932 I3o`1' 423 77 861 $123,276 ; 123 ' 276 123,276 123,276 zp4�� 30.071 523 175 (1) Required principal payments are reduced in these years as a result of the release of monies held in a required reserve account established at the inception of the lease purchase agreement. -31- F. BONDS PAYABLE During the fiscal year ending September 30, 1991, the Village issued capital improvement revenue bonds of $443,782, the proceeds of which was used for the acquisition of equipment and construction of certain public improvements. The Village has pledged certain utility service tax revenues to secure payment of the principal and interest on the bonds. The bonds are due in annual installments of $77,744 through October 1, 1997 including interest at 7.4 %. The annual requirements to amortize the bonds as of September 30, 1992, are as follows: PRINCIPAL INTEREST TOTAL Fiscal year ending September 30: 1993 $ 50,657 $ 27,087 $ 77,744 1994 54,406 23,338 77,744 1995 58,432 19,312 77,744 1996 62,756 14,988 77,744 1997 67,400 10,344 77,744 Thereafter 72.387 5.357 77.744 S366.038 100 426 $466.464 G. DEFERRED COMPENSATION PLAN The Village offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Village employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Village (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Village's general creditors. Participants' rights under the plan are equal to those of general creditors of the Village in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of management that the Village has no liability for losses under the plan but does have the fiduciary duty that would be required of an ordinary prudent investor. The Village believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The following is a summary of the increases and decreases of the deferred compensation fund for the year ended September 30, 1992: Fund assets (at market value) Deferrals of compensation Earnings and adjustments to m Disbursements to employees Administrative expenses Fund assets (at market value) at October 1, 1991 $507,565 108,994 arket value 32,075 (24,852) ( 736) at September 30, 1992 623 046 -32- H. COMMITMENTS AND CONTINGENCIES 1. Legal Matters The Village has several claims arising in the ordinary course of operations pending against the Village. In the opinion of counsel for the Village, the liabilities which may arise from such actions would not result in losses which would materially affect the financial position or the results of operations of any of the Village's various funds. In fiscal year 1991, the Village of Miami Shores was named as a potential responsible party in an EPA investigation. Potential liabilities are indeterminate at this time. 2. Self— Insurance At September 30, 1992, estimated liabilities for self- insured workers' compensation claims amounted to $321,222. These liabilities represent the estimated probable exposure on open claims at September 30, 1992 under a self- insurance program administered by Dade County. The Village terminated its participation in this self - insurance program as of September 30, 1987. As of October 1, 1988, the Village obtained workers' compensation insurance coverage from the Florida League Municipal Self- Insurance Fund. As of October 1, 1991, the Village is under a protected self - insurance program for its workers' compensation. The estimated liability for workers' compensation claims payable is as follows: Current portion in General Fund $ 17,442 Long -term portion accounted for in the General Long -Term Debt Account Group 303.780 Total 5321.222 3. Post Retirements Benefits The Village does not offer continuation of health insurance benefits to employees upon retirement. The full cost of such benefits are paid by the retirees, and the Village has no liability for post retirement benefits. 4. Contingent Liabilities Federal programs in which the Village participates were audited in accordance with the provisions of U.S. Office of Management and Budget Circular A -128, Uniform Requirements for Grants to State and Local Governments. Pursuant to the provisions of Circular A -128 certain major programs were tested for compliance with applicable grant requirements. While no matters of noncompliance were disclosed by audit, the Federal government may subject grant programs to additional compliance tests which may result in disallowed expenditures. In the opinion of management, future disallowances of current grant program expenditures, if any, would be immaterial. I. EMPLOYEES RETIREMENT SYSTEM 1. Plan Description The Village is the administrator of a single - employer Public Employee Retirement System (PERS) established and administered by the Village to provide pension benefits for its employees. The PERS is considered to be part of the Village's financial reporting entity and is included in the Village's financial reports as a pension trust fund. The latest available report is as of October 1, 1991. The Village's total payroll for all employees was $3,839,182 for the year ended September 30, 1992. The covered payroll represents all compensation paid to active employees covered by the PERS on which contributions are made. Covered Annual Payroll General $1,326,179 Police 1,340,693 $2,666,872 General Police Number of Members included in Plan: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 36 5 Current Employees: Fully vested 16 17 Partially vested - - Non- vested 38 14 90 36 The Village provides all employee retirement benefits through a single - employer defined benefit plan. Under the plan, all full -time, permanent employees upon completion of one year of credited service are eligible, provided they are less than age 55 on the date of completion of one year of service. General employees who retire at or after age 62 are entitled to a retirement benefit of 2% of final average compensation times years of service to a maximum of 30 years. Prior to July 1, 1989, for police employees who terminated or retired with 25 years or more of service, regardless of age, the retirement benefit was 2% for the first 25 years of service and 2�i% for years over 25 to a maximum of 30 years. Subsequent to July 1, 1989, the retirement benefit for the first 25 years has been increased to 2.4 %. Final average compensation is the employee's average of the highest 36 consecutive months of compensation during the ten years immediately preceding retirement or termination. Employees are vested after 10 years of service. Vested general employees may retire at or after age 62. Vested police employees may retire upon completion of 25 years of credited service. Early retirement for both general and police employees is at age 55 after 15 or more years of service with reduced retirement benefits. Benefits are established by the pension board and may be amended only by the Village Council. -34- I. EMPLOYEES RETIREMENT SYSTEM (Continued) 1. Plan Description (Continued) General employees and police officers are required to contribute 6% and 9%, respectively, of their salaries to the PERS. If an employee leaves covered employment or dies before ten years of service, accumulated employee contributions with 3% per annum interest are refunded. The Village is required to contribute the remaining amounts necessary to finance the coverage for its employees. Contributions are established by Village charter not to exceed one mill and may be amended only by special referendum. 2. Summary of Significant Accounting Policies and Plan Asset Matters Basis of Accounting PERS financial statements are prepared using the accrual basis of accounting. Employee and employer contributions are recognized as revenues in the period in which employee services are performed. Method Used to Value Investments Investments of the pension fund are reported at market and unrealized appreciation and depreciation due to market fluctuations are reflected in the financial statements as investment earnings. Investment income is recognized as earned. 3. Funding Status and Progress The amount shown below as "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess the Village's PERS funding status on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among PERS. The measure is independent of the actuarial funding method used to determine contributions to the PERS. The pension benefit obligation was determined as part of an actuarial valuation at October 1, 1991. GENERAL POLICE TOTAL Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,459,375 $ 492,349 $1,951,724 Current employees: Accumulated employee contributions with interest 531,671 717,129 1,248,800 Employer financed vested 373,360 1,745,633 2,118,993 Employer financed non - vested 311.377 648.417 959.794 Total pension benefit obligation 2,675,783 3,603,528 6,279,311 _ZS_ I. EMPLOYEES RETIREMENT SYSTEM (Continued) 3. Funding Status and Progress (Continued) Net assets available for benefits, at actuarial value (actuarial value is at market). Assets in excess of pension benefit obligation Financial effect on the pension benefit obligation of current year changes in: Actuarial assumptions /plan amendment Benefit provisions Significant actuarial assumptions used in the valuation: Rate of return on the investment of present and future assets per year Projected salary increases per year due to: Inflation increases Merit or seniority increases 4. Contribution Required and Made GENERAL POLICE TOTAL 3.834.990 3,999.099 7.834.089 51.159.207 $ 395.571 $1.554,778 NONE NONE NONE NONE 8.0% 8.0% 4.0% 4.0% 2.5% 2.5% The Village's funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due. The required contributions are determined using the entry age actuarial cost method. The minimum contribution consists of the normal cost plus the amortization of the components of the unfunded actuarial accrued liability should provide sufficient resources to pay employee pension benefits on a timely basis. Total contributions to the pension plan during 1992 amounted to $445,790. A breakdown of the contribution is as follows: GENERAL PERCENTAGE OF COVERED CONTRIBUTION PAYROLL POLICE PERCENTAGE OF COVERED CONTRIBUTION PAYROLL Village $ 79,083 6.0% $137,960 10.3% Employees 81,898 6.1% 125,321 9.3% State - - 21.528 1.6% 5160.981 12.1% 284 809 21.2% The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of October 1, 1991. The minimum pension contributions represent funding for normal cost of $160,834 and $234,194 for general and police, respectively and the amortization of the unfunded actuarial accrued liability of $(41,067) and $10,759 for -36- I. EMPLOYEES RETIREMENT SYSTEM (Continued) 4. Contribution Required and Made (Continued) general and police, respectively. The difference between the actual contribution and the actuarially determined contribution is the result of higher than expected contributions by the Village, its employees and the amount received from the State for its share for police pension costs. The actuarial assumptions used to compute pension contribution requirements are the same as those used to determine the standardized measure of the pension obligation. The computation of the pension contribution requirements for fiscal year ended September 30, 1992 was based upon the same actuarial assumptions, benefits provisions actuarial funding method and other significant factors as used to determine the pension contribution requirements in the previous year except for the rate of return on investments and the projected salary increases. Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation provides one indication of the Plan's funding status on a going- concern basis. Analysis of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the Plan. Trends in unfunded pension benefit obligation and annual covered payroll are both affected by inflation. Expressing the unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the Plan's progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage, the stronger the Plan. 5. Trend Information Ten -year historical trends information designed to provide information about PERS progress made in accumulating sufficient assets to pay benefits when due is required, however, only four years of complete information was available and is presented below. Following these notes is the Required Supplementary information section on pages 39 through 41. An analysis of funding progress for the pension benefit obligation for the period available, fiscal years ended September 30, 1992, 1991, 1990 and 1989, are presented as follows (in thousands): GENERAL 1. Net assets available for benefits 2. Pension benefit obligations 3. Percentage funded (1 - 2) 4. Assets in excess of pension benefit obligation (2 - 1) 5. Annual covered payroll 6. Assets in excess of pension benefit obligation as a percentage of covered payroll (4 = 5) 7. Employer contributions as a percentage of annual covered payroll. 1992 1991 1990 1989 $3,835 $3,359 $3,766 $3,236 2,676 2,571 2,319 2,868 143.3% 130.6% 162.4% 112.8% 1,159 788 1,447 368 1,326 1,253 1,563 1,625 87.4% 62.9% 92.6% 22.6% 11.9% 11.6% (1) (1) I. EMPLOYEES RETIREMENT SYSTEM (Continued) 5. Trend Information (Continued) POLICE 1. Net assets available for benefits* 2. Pension benefit obligations 3. Percentage funded (1 = 2) 4. Assets in excess of pension (unfunded) benefit obligation (2 - 1) 5. Annual covered payroll 6. Assets in excess of (unfunded) pension benefit obligation as a percentage of covered payroll (4 5) 7. Employer contributions as a percent- age of annual covered payroll. *At market value. (1) -Not available -38- 1992 1991 1990 1989 $3,999 $3,309 $3,516 $2,922 3,603 3,187 3,162 3,325 110.9% 103.8% 111.2% 87.9% 396 122 354 (403) 1,341 1,145 1,042 1,131 29.5% 10.7% 33.9% (35.6)% 19.8% 18.9% (1) (1) REQUIRED SUPPLEMENTARY INFORMATION GENERAL YEAR ENDED SEPTEMBER 30 1991 1990 1989* 1983 - 1988* YEAR ENDED SEPTEMBER 30 1991 1990 1989* 1983 - 1988* MIAMI SHORES VILLAGE, FLORIDA EMPLOYEES RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE Revenues by Source CONTRIBUTION (1 VILLAGE EMPLOYEE STATE INCOME $ 79,083 $ 79,296 $ - $ 523,342 65,460 59,137 - (302,900) 164,666 115,041 - 454,326 (2) (2) (2) Expenses by TviDe ADMINISTRATIVE BENEFITS EXPENSES REFUNDS $138,734 $ 66,866 $17,456 98,604 67,290 80,925 120,707 46,072 45,288 (2) (2) (2) INVESTMENT TOTAL $ 681,721 (178,303) 734,033 (2) TOTAL $ 223,056 246,819 212,067 (2) (1) Contributions were made in accordance with actuarially determined contribution requirements. (2) Ten years of allocated information is unavailable; information is presented combined only for as many years as complete information is available. * Actuary evaluation was for year ending January 1. MIAMI SHORES VILLAGE, FLORIDA EMPLOYEES RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE POLICE YEAR ENDED SEPTEMBER 30 1991 1990 1989* 1983 - 1988* YEAR ENDED SEPTEMBER 30 1991 1990 1989* 1983 - 1988* Revenues by Source Expenses by Type ADMINISTRATIVE BENEFITS CONTRIBUTION (1) $ 45,830 VILLAGE EMPLOYEE STATE INCOME $135,559 $110,414 $20,599 $531,235 85,010 75,226 23,028 (307,468) 194,052 79,149 21,386 417,516 (2) (2) (2) (2) Expenses by Type ADMINISTRATIVE BENEFITS EXPENSES REFUNDS $ 45,830 $ 27,047 $17,349 37,234 27,219 - 49,895 23,906 36,235 (2) (2) (2) INVESTMENT TOTAL $797,807 (124,204) 712,103 (2) TOTAL $ 90,226 64,453 110,036 (2) (1) Contributions were made in accordance with actuarially determined contribution requirements. (2) Ten years of allocated information is unavailable; information is presented combined only for as many years as complete information is available. * Actuary evaluation was for year ending January 1. -40- MIAMI SHORES VILLAGE, FLORIDA EMPLOYEES RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION - COMBINED POLICE AND GENERAL SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE (2) Revenues by Source PERCENTAGE CONTRIBUTIONS (1) OF COVERED INVESTMENT EMPLOYEE EMPLOYER PAYROLL INCOME TOTAL Year ended January 1: 1983 1984 1985 1986 1987 1988 $ 86,135 101,857 121,264 126,748 130,309 141,800 Year ended January 1: $153,869 9.8% $304,774 $ 544,778 167,375 9.3 350,874 620,106 164,075 8.2 234,800 520,139 184,457 8.5 672,347 983,552 266,262 12.2 325,532 722,103 266,780 9.4 391,201 799,781 Expenses by Type ADMINISTRATIVE BENEFITS EXPENSES REFUNDS TOTAL 1983 $101,223 $ 21,093 $ 17,880 $ 140,196 1984 107,457 58,822 28,936 195,215 1985 108,201 28,033 21,542 157,776 1986 116,793 31,399 36,929 185,121 1987 119,340 46,226 33,018 198,584 1988 126,034 66,674 27,940 220,648 (1) Contributions were made in accordance with actuarially determined contribution requirements. -t'i - INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS GOVERNMENTAL FUND TYPES GENERAL FUND The General Fund is the principal fund of the Village and is used to account for resources traditionally associated with governments which are not required to be accounted for in another fund. MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND COMPARATIVE BALANCE SHEETS SEPTEMBER 30, 1992 1991 ASSETS Equity in pooled cash and investments $1,154,994 $1,098,819 Accounts receivable 735,150 1,096,571 Allowance for uncollectible accounts receivable (204,825) (201,736) Due from other governments: State of Florida 68,535 32,701 Metropolitan Dade County 17,510 11,752 Federal Emergency Managment Assistance 426,690 - 512,735 44,453 Inventories 41,453 40,986 Prepaid costs and other assets 86,412 8,277 Total assets $2,325,919 $2,087,370 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ 282,584 $ 129,438 Accrued liabilities 110,154 62,704 Workers' compensation claims payable 22,889 20,571 Deferred revenues 576,087 509,308 Total liabilities 991,714 722,021 FUND EQUITY: Reserved for: Encumbrances 279,271 241,091 Prepaid costs 86,412 8,277 Unreserved: Designated for capital outlay 223,088 400,927 Designated for emergencies and contingencies 745,434 715,054 Total fund equity 1,334,205 1,365,349 Total liabilities and fund equity $2,325,919 $2,087,370 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -43- MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Revenues: Taxes: General property taxes, current and delinquent Franchise taxes Utility taxes Total taxes Licenses and permits: FISCAL YEAR ENDED SEPTEMBER 30 1992 1991 VARIANCE REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL $2,478,487 $2,464,596 $( 13,891) $2,351,995 488,354 463,182 ( 25,172) 485,918 831,800 809,826 ( 21,974) 767.694 3,798,641 3,737,604 ( 61,037) 3.605.607 Business licenses 47,000 47,637 637 44,521 Building permits 63,000 73,602 10,602 69,250 Other licenses and permits 12.800 12,045 [ 755) 3.065 Total licenses and permits 122,800 133,284 10,484 116.836 Intergovernmental revenues: 1,871,773 1,826,078 ( 45,695) 1,553,224 State shared revenues: Cigarette taxes 10,000 12,772 2,772 12,338 State revenue sharing 198,758 232,742 33,984 222,508 Beverage licenses 2,500 1,706 ( 794) 1,960 Local governmental half cent sales tax 401,950 410,653 8,703 382,307 Department of transportation (landscape maintenance) 17,318 17,318 - 12,989 Local option gas tax trust 161,844 136,262 ( 25,582) 171,465 County shared revenue: County occupational licenses 34,000 34,524 524 35,037 School crossing programs 13,112 9,429 ( 3,683) 12,446 Recycling grant - 28,313 28,313 8,923 Beautification grant - - 25.680 Total intergovernmental revenues 839,482 883.719 44,237 885.653 Charge for services: Public safety 164,111 157,024 ( 7,087) 158,473 Physical environment 1,496,019 1,477,587 ( 18,432) 1,234,112 Transportation 20,000 12,551 ( 7,449) 10,484 Culture /recreation 191,643 178,916 ( 12,727) 150.155 Total charges for services 1,871,773 1,826,078 ( 45,695) 1,553,224 Fines and forfeitures: Court fines and costs 55,000 72,465 17,465 51,828 Other 98.000 7,253 ( 90,747) _ 44.616 Total fines and forefeitures 153.000 79,718 ( 73,282) 96.444 Miscellaneous revenue: Interest income 162,440 66,124 ( 96,316) 124,837 Donations from various sources 7,942 7,392 ( 550) 8,030 Rents 175,000 158,344 ( 16,656) 143,731 Other revenue 855,402 521,703 (333,699) 40,202 Total miscellaneous revenue _1,200,784 753,563 (447,221) 316,800 Total revenues $7,986,480 $7,413,966 $(572,514) $6,574.564 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -44- MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -45- FISCAL YEAR ENDED SEPTEMBER 30, 1992 1991 VARIANCE REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL Expenditures: Current: General Government: Village Council: Personnel services $ 5 $ 5 $ - $ 5 Operating expenses 3,950 3,782 168 6,688 Village Attorney: Personnel services 1,200 1,200 - 1,200 Operating expenses 81,100 96,265 (15,165) 395,226 Village Manager: Personnel services 163,609 163,513 96 148,739 Operating expenses 22,379 22,280 99 28,274 Capital outlay - - - 279 Finance: Personnel services 157,221 156,947 274 162,042 Operating expenses 42,560 38,122 4,438 37,355 Capital outlay - - - 374 Other General Government Services Non - departmental: Personnel Services 8,726 8,725 1 - Operating expenses 202,729 193,622 9,107 213,147 Non - operating expenses 19,430 19,430 - 5,378 Capital outlay 3,000 2,989 11 3,264 Downtown revitalization: Personnel services - - - 7,881 Operating expenses 3,850 3,850 - 49,321 Capital outlay - - - 2,859 Total general government 709,759 710,730 971) 1,062,032 Public safety: Law enforcement: Personnel services 2,334,418 2,301,674 32,744 2,121,548 Operating expenses 222,152 212,461 9,691 205,363 Non - operating expenses 1,284 1,284 - 5,699 Capital outlay 2,528 2,528 - 4,986 Mobile crime watch: Operating expenses 7,402 6,320 1,082 7,103 Building and zoning: Personnel services 141,025 140,067 958 138,113 Operating expenses 38,861 35,090 3,771 34,778 Capital outlay 710 649 61 - Total public safety 2,748,380 2.700,073 48.307 2,517,590 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -45- MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30, 1992 1991 VARIANCE REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL Public services: Public works administration: Personnel services Operating expenses Street maintenance: Personnel services Operating expenses Capital outlay Solid waste collection: Personnel services Operating expenses Capital outlay Total public services Culture /recreation: Recreation: Personnel services Operating expenses Capital outlay Parks: Personnel services Operating expenses Capital outlay Library: Personnel services Operating expenses Capital outlay Total culture /recreation Debt service (Note E): Principal retirement Interest Total debt service Total expenditures Excess (deficiency) of revenues over (under) expenditures $ 131,883 $ 131,841 $ 42 $ 121,457 12,033 11,942 91 14,234 304,708 293,708 11,000 262,144 502,743 492,003 10,740 238,868 278,655 127,251 151,404 181,245 580,188 556,111 24,077 480,030 571,949 563,823 8,126 492,227 13,652 971 12,681 307 2,395,811 2,177,650 218,161 1,790,512 499,310 490,825 8,485 463,871 186,237 174,418 11,819 185,954 23,637 16,658 6,979 62,900 270,660 252,498 18,162 218,424 76,593 59,030 17,563 49,479 35,807 668 35,139 - 158,471 157,990 481 179,292 52,579 51,020 1,559 51,758 1,902 388 1,514 4,751 1,305,196 1,203,495 101,701 1,216,429 288,207 288,206 1 287,220 40,828 40,828 61,069 329,035 329,034 1 348,289 7,488,181 7,120,982 367,199 6,934,852 $ 498,299 $ 292,984 $(205,315) $ (360.288) SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -46- MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONTINUED) FISCAL YEAR ENDED SEPTEMBER 30, 1992 1991 VARIANCE REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL Excess (deficiency) of revenues over (under) expenditures $ 498,299 Other financing sources (uses): Operating transfers in (out): Capital Projects (494,642) General Trust ( 3,657) Proceeds from bond financing - Total other financing sources (uses) (498,299) Excess (deficiency) of revenues and other financing sources (uses) over (under) expenditures - Fund balance at beginning of year 1,365,349 Fund balance at end of year $1,365,349 $ 292,984 $(205,315) $ (360,288) (323,451) 171,191 (414,179) ( 677) 2,980 - - - 443,782 (324,128) 174,171 (330,685) ( 31,144) (31,144) (330,685) 1,365,349 - 1,696,034 $1,334,205 $ (31,144) $1,365,349 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -47- CAPITAL PROJECTS CAPITAL PROJECTS The capital projects fund accounts for financial resources to be used for the acquisition or construction of major capital facilities and improvements. MIAMI SHORES VILLAGE, FLORIDA CAPITAL PROJECTS FUND COMPARATIVE BALANCE SHEETS September 30, 1992 1991 ASSETS Equity in pooled cash and investments 8270.657 $254.932 Total Assets JIL2.6657 254 932 LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable S 4.285 $ 53.511 Total Liabilities 4.285 53.511 Fund Balance Reserved for encumbrances 173,830 161,386 Unreserved: Designated for capital outlay 92.542 40.035 266.372 201.421 Total liabilities and fund balance JLZad.6. 57 JZI4L,932 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -49- MIAMI SHORES VILLAGE, FLORIDA CAPITAL PROJECTS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30, 1992 VARIANCE REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) Revenues: Interest income $ 5,367 $ 18,997 $ 13,630 Miscellaneous revenues 3 3 Total revenues 5,367 19,000 13.633 Expenditures: Current: General government 140,349 56,002 84,347 Public safety 35,310 33,916 1,394 Public service 287,497 142,113 145,384 Culture /Recreation 67,083 45,469 21,614 Total expenditures 530,239 277,500 252,739 Deficiency of revenues over expenditures (524,872) (258,500) 266,372 Other financing sources: Appropriated fund balance 201,421 - 201,421 Operating transfers in 323,451 323,451 - Total other financing sources 524,872 323,451 (201,421) Excess of revenues over expenditures - 64,951 64,951 Fund balance at beginning of year 201,421 201,421 - Fund balance at end of year 20 266 372 64 951 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -50- INTERNAL SERVICE FUND INTERNAL SERVICE FUND Internal service fund is used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Self Insurance Fund - to account for the accumulation and allocation of costs associated with insurance. MIAMI SHORES VILLAGE, FLORIDA INTERNAL SERVICE FUND SELF - INSURANCE COMPARATIVE BALANCE SHEET September 30, 1992 1991 ASSETS Equity in pooled cash and investments $402,308 $206,798 Miscellaneous accounts receivable - 13,435 Prepaid insurance 2.314 - Total Assets 40�4.,622 220 233 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable and accrued liabilities $ 1,951 $ 4,675 Estimated insurance claims 260.210 198.049 Total Liabilities 262,161 202,724 Fund equity: Retained earnings - unreserved 142.461 17.509 Total Liabilities and Fund Equity 404 622 JZL0, 233 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -51- MIAMI SHORES VILLAGE, FLORIDA INTERNAL SERVICE FUND SELF - INSURANCE COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Charges for services Operating Expenses: Insurance premiums Claims Administrative Total operating expenses Operating income (loss) Non - operating income: Interest income Net income Retained earnings, beginning of year Retained earnings, end of year Fiscal Year Ended September 30, 1992 1991 $461.500 $420,000 230,013 118,104 8.600 356.717 104,783 20.169 124,952 17.509 142 461 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -52- 226,030 192,868 5.729 424.627 (4,627) 22.136 17,509 17 509 FIDUCIARY FUND TYPES FIDUCIARY FUND TYPES These funds account for assets held by the Village in a trustee capacity or as an agent for employees, other governments and /or other funds. Expendable Trust Funds: General Trust Fund - To account for the use of specific designated resources. Law Enforcement Training Trust Fund -To account for proceeds obtained through fines designated specifically for training law enforcement officers. Police Forfeiture Fund - To account for proceeds obtained through the sale of confiscated and unclaimed property turned over to the Village through court judgments. Proceeds are to be used solely for crime fighting purposes. Pension Trust Fund - To account for the fiscal activities of the Miami Shores Village Pension Board which accumulates assets and pays benefits to qualified retirees of Miami Shores Village. Agency Fund: Deferred Compensation Fund - To account for receipts and disbursements of amounts withheld from wages of employees participating in a deferred compensation plan. -53- `Ly i4 w w H �i H N H U z H �1 O H N W H O z z H a 0 U U d w w n N v'1 v1 e7 ID a N 10 ID O m th n m d O .� O N m w •-O+ m --In -m In o h u1 d I�rn m + - O) a O n o " O) N n ~ O O CQ .-0 •-I N .r 17 a ]CO t7 .0i m In N 1°n vi m m V2 pG n to n n m H C ...I 17 O i.O N OT W y1 �E a'i O FW 4 +1 M G i1 J3 'i 0 hm to h mN a a Hx o v i N O E a o .a W to . " N b M O a� 0 OQm 11iff O 4 a1 W O NW I h 17 I ed ♦ OF l O 7 V N 1 rl ea 7 � W-- D 1 m W N .1 a o G O G 1-1 N�� w p e e � a q - 4 n .4 a �1. •• R w 43 O QI 4 O W F F w ,O D A O F O m +1 z m 1 Will m m w D mawwaa m a al A O Iti a o a 0 a 0 d 0 < 6 G 0 w b wc�19 caa I I I 1 1 1 w V I I I 1 w � Iwo Iwo Iwo Iwo w w a� � c� U O F O F m m w In O 0 O d a Ir1 W M W m O a d d a a m m Go m W N N m m wl In In m .� m W h n w cn m In .-I In p N ~ N N N H 6i O fu., N N fr1 H w W a w H a VI Z rW.7 H F Yd1 rn oil d .op °xxi co (A D cq � W w H U 4 F d d 00 Al a d L��. . . "•yJNa' N N N N W H -53- `Ly i4 w w H �i H N H U z H �1 O H N W H O z z H a 0 U U d w w m M O w •-O+ .� H C ...I 17 O i.O N OT W y1 �E a'i O O 4 +1 M G i1 J3 'i 0 a a Hx o v e N E a o .a 4.0 H +/ O b M O a� 0 O A O 4 a1 W O o Fl p m c a 4 V w c .1 a o G O G 4 p e e � a q 4 o .4 a �1. •• R w 43 .--4 a 4 R. F F w ,O D A O F O m +1 a n d w D mawwaa m w 4 G) a x U i W w < 6 G w b wc�19 caa a w -53- `Ly i4 w w H �i H N H U z H �1 O H N W H O z z H a 0 U U d w w r-f A O� A O � M WM M m V1 00 N %D f35 e-i W OO �7 N r-4 %D W � 4 y+ W N eo M en .a a cn dw O U N N W N H M W V1 en y .4 W M U N O N U to ' M PQ ' A En W M V1 fl %D �7 r-4 � d co C/1 O 44 p' 4-I V) U O W A U N H En O z F 41 W w' V �UHO F U —1 'CS m to �L4 H w W w G OG W A w F z O -W G En w 1.1 tfJ F to 0 En '-'.a za O U cd H W a1 G � a) "-4 41 to cd O 0 U F z w k w G 1.1 "a U .r+ G d Icli F w V) CO W 4J u U o. z z m m z d W H i- Cq m m\ V O u U d M V1 V1 M fl M m V1 00 N %D N e-i N V1 M It OO �7 N r-4 %D -1 4 —4 N eo M en .4 H en O It er to eoo n en ON co llO O en n �t 4 In V1 eo M en .4 H cn O O OD r4 N O M N V1 en N eN M m en en O 'o u1 O CO N N �T -1 Go M f� �D M 4 In V1 eo M N �? O n N N 1 M N V1 v v eN en en O 'o u1 O CO N N N �O N %o n ego C', a' en M O OD V1 .-1 r•1 %O ^ m N i r- SID u1 en .4 Ln �O N N %W N en V1 N Cn V1 N N I� co co t+D1 i i l MI w M M f� N N 00 N O d •� -4 04 m O eT eT %D %D N f� f-- m 1.0 co M N LU 11 co V1 1� N ego M O N O N U to ' M ' a) U 0 N M V1 fl %D �7 r-4 � d co bb d OD 4-I V) %.D N N to N N 41 41 w co co t+D1 i i l MI w M M t` f� �D f� N N 00 N O d •� -4 04 m tD M C 00 O r--q R1 >, w w M M M e-•1 t` f� �D f� N N 00 N O d •� -4 04 m tD M O O °>' O �+ cd O r. R1 >, t` f� �D -54- f� —4 d •� -4 04 m 9 O O °>' O �+ cd O r. R1 >, w w M OO e-•1 LU 11 r-1 4 0o O O N O N U to O O M y a) U 0 N N d N 4-) "A [ -i � d ^ m m bb d 'd G 4-I to W to 'd � 41 41 w ai U —1 'CS m to U bD W G G O G aGi >, F G G 0 1.1 41 N to 0 i O U cd M a1 G NN a) "-4 41 to cd 0 U d -4 k +a d G 1.1 "a U .r+ G O Icli w CO W 4J eu U o. "4 iJ z m m 'b 0 d W G i- m m\ V +4 X u •r1 cd G d d G •-1 G O L*r m r-1 d a) O r-1 O G bD 44 G y U U M 41 H "A a) td W co a, 0 G a) •, a G G W —1 m 1.i w w -W V F 41 b .. G• 4 b 4a k cd °z m U r+ al cd a) () O 4j G H 43 cd O 3.+ .a 41 `' a) 4 �4 1 G 4 F «a o � a) W os w z ar 'O U cd O 41 G b 0. a r-1 M H m Ln C,1 G �+ O r U O. m G w a� m e j.1 a) "4 "1 a) Z a) d G. d 1.1 a) b O >r� U -54- d •� -4 04 m 9 O O °>' O �+ cd O r. R1 >, w w -54- N a) U LU 11 4-4 O 4 G o1 O 0 O N U to O O •.•1 a) U 0 N d ..d 41 4-) "A ^� � d ^ m m bb d 'd G 4-I d • to 'd � 41 41 w ai U —1 'CS m to U bD W G G O G aGi >, G G 0 1.1 41 to 0 i O U cd p, a1 G by cd a) "-4 41 to cd 0 U d 44 d r-+ k +a d G 1.1 "a U .r+ G O m w CO W 4J eu U o. "4 iJ U G b m m 'b 0 d W G i- m m\ V +4 X u •r1 cd G d d G •-1 G O O m r-1 d a) O r-1 41 d G bD 44 G y U U M 41 cd "A a) td W to a, 0 G a) •, a G G ed —1 m 1.i w w -W V 41 .,.4 :1 4 41 b .. G• 4 b 4a k cd cd m U r+ al cd a) () O 4j G H 43 cd O 3.+ .a 41 `' a) 4 �4 1 G 4 F «a d p 4 4 F a) W os w cd cd ar 'O U cd O 41 G b 0. a G G d m Ln A 0 H G �+ O r U O. m G w a� m e j.1 a) "4 "1 a) td a) d G. d 1.1 a) b 'C >r� kU v � �O O'o ci x w w O w w w -54- MIAMI SHORES VILLAGE, FLORIDA PENSION TRUST FUND BALANCE SHEET ASSETS CASH WITH PENSION TRUSTEE INVESTMENTS, AT MARKET ACCRUED INTEREST RECEIVABLE Total Assets LIABILITIES AND FUND BALANCE LIABILITIES: Accounts Payable Total Liabilities FUND BALANCE: Reserved for pensions Total Liabilities and Fund Balance Totals September 30 General Police 1992 1991 $ 39,017 $ 42,269 $ 81,286 $ 322 4,004,029 4,397,937 8,401,966 7,620,365 10,193 $4,043,046 54,440.206 $8,483,252 S7,63�0,880 S 9,353 S 9,754 $ 19,107 S 10,474 9,353 9,754 19,107 10,474 4,033,693 4,430,452 8,464,145 7,620,406 X4,043,046 $4,440,206 S8,483,252 57,6_880 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS, -55- MIAMI SHORES VILLAGE, FLORIDA PENSION TRUST FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE Operating revenues: Contributions: Village State Employees Earnings on investments Total operating revenues Operating expenses: Administrative and general Benefits payments and refunds Total operating expenses Net income Fund balance at beginning of year Fund balance at end of year 54,033,693 54,430,452 S8,46�4,145 57,620 406 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -56- Totals Fiscal Year Ended September 30, General Police 1992 1991 $ 79,083 $ 137,960 $ 217,043 $ 150,470 - 21,528 21,528 20,599 81,898 125,321 207,219 189,710 160,981 284,809 445,790 360,779 356,816 397,855 754,671 1,054,580 517,797 682,664 1,200,461 1,415,359 54,881 57,121 112,002 93,913 185,130 59,590 244,720 219,369 240,011 116,711 356,722 313,282 277,786 565,953 843,739 1,102,077 3,755,907 3,864.499 7.620,406 6,518,329 54,033,693 54,430,452 S8,46�4,145 57,620 406 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -56- MIAMI SHORES VILLAGE, FLORIDA DEFERRED COMPENSATION FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FISCAL YEAR ENDED SEPTEMBER 30, 1992 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -57- BALANCE BALANCE OCTOBER 1, TRANSFERS/ SEPTEMBER 30, 1991 ADDITIONS DELETIONS 1992 ASSETS: Deferred compensation investments, at market JILL 0 70 $25,589 JkI2,046 LIABILITIES: Deferred compensation payable to employees 507 565 141 070 25 589 62S 3 046 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -57- GENERAL FIXED ASSETS ACCOUNT GROUP GENERAL FIXED ASSETS ACCOUNT GROUP To account for fixed assets not used in Proprietary and similar Fiduciary Fund Type operations. MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE SEPTEMBER 30, 1992 General fixed assets: Land Buildings Improvements other than buildings Equipment Total general fixed assets Investment in general fixed assets from: State and local grants General Fund revenues Capital projects fund Special Revenue Fund Gifts and donations Confiscated property Country Club Total investment in general fixed assets SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -59- $ 718,531 2,050,935 1,370,431 2,614,378 $6.754,275 $ 57,591 4,360,962 477,366 407,772 18,820 98,891 1.332.873 86.754.275 MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY SEPTEMBER 30, 1992 FUNCTION LAND General government - financial and administrative $ 1,500 $ Public safety - police - Public services - public works 71,264 Culture /recreation: Parks and recreation Library Country Club Total general fixed assets allocated to functions 62,350 682,074 189,439 151,181 1,085,044 2,500 289,286 335 167,601 459,722 580.917 347.417 261.763 142.776 1.332.873 718 531 $2.050.935 91.370.431 92.614.378 $6.754.275 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -60- IMPROVEMENTS OTHER THAN BUILDINGS BUILDINGS EQUIPMENT TOTAL 230,994 $ 73,788 $ 198,741 $ 505,023 266,410 34,274 584,627 885,311 234,754 810,832 1,369,452 2,486,302 62,350 682,074 189,439 151,181 1,085,044 2,500 289,286 335 167,601 459,722 580.917 347.417 261.763 142.776 1.332.873 718 531 $2.050.935 91.370.431 92.614.378 $6.754.275 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -60- MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30, 1992 FUNCTION AND ACTIVITY General government: Financial and Administrative Public safety - police Public services - public works Culture /recreation: Parks and recreation Library Country Club Total culture /recreation Total general fixed asset allocated to functions BALANCE 51,060 2,348 BALANCE OCTOBER 1, 2,817 - SEPTEMBER 30, 1991 ADDITIONS DELETIONS 1992 2.840.356 $ 446,415 $ 58,991 $ 383 $ 505,023 895,351 93,959 103,998 885,311 2,317,087 191,728 22,512 2,486,302 1,036,332 51,060 2,348 1,085,044 456,905 2,817 - 459,722 1.347.119 - 14.246 1.332.873 2.840.356 53.877 16.594 2.877.639 X6.499.209 $389,553 143 487 56.754.275 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -61- Statistical Tables MIAMI SHORES VILLAGE, FLORIDA COMMENTS RELATIVE TO STATISTICAL SECTION SEPTEMBER 30, 1992 The following statistical tables that are recommended for inclusion by the Governmental Accounting Standards Board (GASB) Statement No. 1 are not included for the reasons stated below: A. Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - The Village has not had any general obligation bonds over the past six fiscal years. B. Ratio of Annual Debt Service for General Bonded Debt to Total General Expenditures - The Village has not had any general obligation bonds over the past six fiscal years. C. Computation of Legal Debt Margin - The City Charter and the Constitution of the State of Florida, Florida State Statute 200.181 does not provide for a legal debt limit. -63- MIAMI SHORES VILLAGE, FLORIDA TABLE I GENERAL GOVERNMENTAL EXPENDITURES AND OTHER FINANCING USES BY FUNCTION (1) LAST TEN FISCAL YEARS (1) General governmental expenditures include all Governmental Fund Types and Expendable Trust Funds of the Village. Source: Miami Shores Village Finance Department. -64- PUBLIC SERVICES FISCAL GENERAL PUBLIC STREETS CULTURE/ DEBT YEAR GOVERNMENT SAFETY & ADMIN SANITATION RECREATION SERVICE TOTAL 1983 $367,951 $1,278,581 $ 381,382 $ 654,741 $ 832,329 $ 17,870 $3,728,320 1984 479,633 1,500,247 551,109 681,923 933,132 17,190 4,163,234 1985 477,767 1,704,364 665,024 717,165 1,122,899 18,174 4,705,393 1986 529,970 1,657,942 598,507 796,787 1,116,003 4,806 4,704,015 1987 579,320 2,156,247 767,617 999,907 1,151,157 3,374 5,657,622 1988 662,200 2,050,383 564,012 1,153,518 1,273,411 190,108 5,893,632 1989 771,309 2,429,889 645,513 938,330 1,270,930 238,899 6,194,870 1990 724,504 2,487,160 849,493 973,996 1,147,600 308,484 6,491,237 1991 1,079,128 2,658,769 839,476 1,026,076 1,236,613 348,289 7,188,351 1992 766,732 2,802,608 1,060,660 1,259,103 1,259,271 329,034 7,477,408 (1) General governmental expenditures include all Governmental Fund Types and Expendable Trust Funds of the Village. Source: Miami Shores Village Finance Department. -64- MIAMI SHORES VILLAGE, FLORIDA TABLE II GENERAL REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1) LAST TEN FISCAL YEARS (1) General revenues include all Governmental Fund Types and Expendable Trust Funds of the Village. * Includes $443,782 Capital Loan Proceeds Source: Miami Shores Village Finance Department. -65- LICENSES CHARGES FISCAL AND INTER- FOR FINES AND MISCEL- YEAR TAXES EP RMITS GOVERNMENTAL SERVICES FORFEITURES LANEOUS 0� TALS 1983 $2,364,172 $104,606 $467,579 $650,577 $35,561 $180,844 $3,803,339 1984 2,634,649 65,363 687,916 697,676 52,790 268,363 4,406,757 1985 2,892,152 70,739 708,700 849,753 48,140 246,159 4,815,643 1986 3,102,089 80,660 784,705 1,069,626 51,960 252,031 5,341,071 1987 3,059,448 95,324 757,487 1,150,649 70,843 227,888 5,361,639 1988 3,043,277 93,102 886,953 1,140,455 61,395 348,215 5,573,397 1989 3,270,710 106,214 868,871 1,332,099 122,483 343,510 6,043,887 1990 3,576,577 114,326 897,078 1,438,148 138,753 273,567 6,449,449 1991 3,605,607 116,836 885,653 1,553,224 96,444 760,582* 7,018,346 1992 3,737,604 133,284 883,719 1,826,078 83,401 1,069,366 7,733,452 (1) General revenues include all Governmental Fund Types and Expendable Trust Funds of the Village. * Includes $443,782 Capital Loan Proceeds Source: Miami Shores Village Finance Department. -65- MIAMI SHORES VILLAGE, FLORIDA TABLE III PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Source: Miami Shores Village Finance Department and Dade County Property Appraiser. -66- PERCENT OF PERCENT DELINQUENT TOTAL TOTAL TAX FISCAL TOTAL CURRENT TAX OF LEVY TAX TAX COLLECTION YEAR TAX LEVY COLLECTIONS COLLECTED COLLECTIONS COLLECTIONS TO TAX LEVY 1983 $1,746,706 $1,562,347 89 $39,584 $1,601,931 92 1984 1,847,154 1,741,319 94 54,716 1,796,035 97 1985 1,997,108 1,886,883 95 43,130 1,930,013 97 1986 2,001,818 1,897,495 95 45,810 1,943,305 97 1987 1,951,427 1,901,359 97 2,652 1,904,011 98 1988 1,983,165 1,863,594 94 51,899 1,915,493 97 1989 2,097,457 1,969,373 94 50,157 2,019,530 96 1990 2,439,756 2,317,768 95 48,023 2,365,791 97 1991 2,478,450 2,336,552 94 15,443 2,336,552 95 1992 2,556,303 2,430,777 95 33,819 2,464,596 96 Source: Miami Shores Village Finance Department and Dade County Property Appraiser. -66- MIAMI SHORES VILLAGE, FLORIDA TABLE IV ASSESSED VALUE OF TAXABLE PROPERTY (1) LAST TEN FISCAL YEARS PERSONAL (1) The basis of assessed value is approximately one hundred percent (100X) of actual value. For each fiscal year ending September 30, property is valued as of January 1st of the preceding calendar year. Source: Dade County Property Appraiser. -67- REAL PROPERTY PROPERTY CENTRALLY TOTAL FISCAL ASSESSED ASSESSED ASSESSED ASSESSED YEAR VALUE VALUE PROPERTY VALUE 1983 $268,485,916 $13,114,556 $294,372 $281,894,844 1984 265,749,933 12,984,456 391,240 279,125,629 1985 263,922,507 14,357,831 479,122 278,759,460 1986 265,321,732 15,288,618 439,652 281,050,002 1987 266,968,806 14,261,806 407,057 281,637,669 1988 268,844,024 15,295,871 345,907 284,485,802 1989 269,114,947 15,284,559 576,031 284,975,537 1990 274,396,671 14,286,897 576,031 289,259,599 1991 304,247,415 13,205,137 705,348 318,157,900 1992 303,333,325 15,899,139 705,348 319,937,812 (1) The basis of assessed value is approximately one hundred percent (100X) of actual value. For each fiscal year ending September 30, property is valued as of January 1st of the preceding calendar year. Source: Dade County Property Appraiser. -67- MIAMI SHORES VILLAGE, FLORIDA TABLE V PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1,000 OF ASSESSED VALUATION) LAST TEN FISCAL YEARS Source: Dade County Property Appraiser. 'iii SOUTH FLORIDA DADE WATER COUNTY FISCAL GENERAL MANAGEMENT SCHOOL DADE YEAR FUND DISTRICT DISTRICT COUNTY TOTAL 1983 5.89 .384 7.14 8.57 21.98 1984 6.60 .399 6.50 8.70 22.20 1985 6.60 .427 7.20 9.57 23.80 1986 7.17 .439 7.316 10.74 25.67 1987 7.17 .513 7.558 10.81 26.05 1988 6.995 .564 7.551 10.892 26.02 1989 7.380 .587 7.693 10.894 26.55 1990 8.380 .547 8.190 11.23 28.35 1991 7.790 .547 8.666 12.00 29.00 1992 7.990 .547 8.683 12.02 29.24 Source: Dade County Property Appraiser. 'iii MIAMI SHORES VILLAGE, FLORIDA TABLE VI COMPUTATION OF OVERLAPPING DEBT SERVICE (1) SEPTEMBER 30, 1992 Name of Governmental Unit Dade County Net Debt Outstanding $803,737,794 Percent Applicable to Miami Shores Village .0541% Miami Shores Village Share of Debt $ 434,822 (1) Source: Dade County -69- MIAMI SHORES VILLAGE, FLORIDA TABLE VII DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Source: (a) Bureau of Economic Analysis * (Figures in 1988 and 1989 not available). (b) Dade County Planning Department (per 1980 census). (c) Bureau of Economic and Business Research. (d) State of Florida Department of Labor and Employment. (All figures, except population, are Dade County figures; Village figures were not available.) -70- (1) (2) (3) (4) FISCAL PER CAPITA MEDIAN UNEMPLOYMENT YEAR INCOME AGE POPULATION RATE 1983 $12,695 39 9,192 9.8% 1984 13,762 39 9,150 7.8% 1985 14,918 39 9,100 7.7% 1986 15,366 39 9,050 6.5% 1987 15,689 39 9,130 5.6% 1988 15,689* 39 8,925 5.3% 1989 15,689* 39 9,061 6.4% 1990 15,892 39 10,006 6.9% 1991 17,963 35 10,084 9.3% 1992 21,428 36 10,097 11.8% Source: (a) Bureau of Economic Analysis * (Figures in 1988 and 1989 not available). (b) Dade County Planning Department (per 1980 census). (c) Bureau of Economic and Business Research. (d) State of Florida Department of Labor and Employment. (All figures, except population, are Dade County figures; Village figures were not available.) -70- MIAMI SHORES VILLAGE, FLORIDA TABLE VIII PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS FISCAL CONSTRUCTION VALUE BANK PROPERTY VALUE (2) YEAR COMMERCIAL RESIDENTIAL DEPOSITS (1) COMMERCIAL RESIDENTIAL 1983 $ 250,000 $ 96,840 $ 8,460,557 $28,866,032 $253,028,812 1984 450,000 - 10,193,442 28,582,464 250,543,165 1985 1,050,000 420,000 10,508,703 28,543,457 250,216,003 1986 2,548,295 1,127,495 10,092,538 28,667,100 252,382,902 1987 2,285,076 4,465,914 14,659,605 28,724,225 252,913,444 1988 4,404,642 2,049,631 12,897,683 29,014,707 255,471,095 1989 1,496,734 2,194,491 12,258,045 29,067,505 255,908,032 1990 6,142,111 2,627,706 11,387,817 32,869,891 256,389,708 1991 1,395,011 3,027,508 11,877,335 36,142,737 282,015,163 1992 1,303,199 3,116,805 11,020,361 51,190,049 268,747,763 (1) Municipal Bank Deposit Records (2) Estimated actual value. Source: Miami Shores Village and Barnett Bank -71- MIAMI SHORES VILLAGE, FLORIDA TABLE IX PRINCIPAL TAXPAYERS SEPTEMBER 30, 1992 $22.645.499 Source: Miami Shores Village Finance Department -72- PERCENTAGE OF TOTAL ASSESSED VALUATION 2.61% .90% .70% .51% .45% .45% .43% .42% .35% .26% 7.08% 1992 ASSESSED TAXPAYER PROPERTY OWNED VALUATION Biscayne Kennel Club $8,335,238 Northern Trust Bank of Florida Shores Center 2,900,000 Boris Moroz and Phil Glassman 9325 Block of Park Dr. Shores Point Burger King, Winn Dixie, Tony Romas /Kitchen Extras 2,228,020 Tropical Chevrolet Inc. Tropical Chevrolet 1,628,612 David Ronald & Paul Fieldstone Trust 9999 N.E. 2nd Avenue 1,457,081 George Bennett /Bennett 9500 Block of N.E. 2nd Electric Avenue Residence 1,428,440 Henry Everett 9600 Block of N.E. 2nd Avenue private residence 1,385,421 NCNB National Bank NCNB 1,339,098 Sheila McDonald 11 Residential Prop. in Miami Shores 1,107,980 Konover Properties, Inc. Shores Cinema 9800 Block of N.E. 2nd Avenue and private residence 835.609 $22.645.499 Source: Miami Shores Village Finance Department -72- PERCENTAGE OF TOTAL ASSESSED VALUATION 2.61% .90% .70% .51% .45% .45% .43% .42% .35% .26% 7.08% MIAMI SHORES VILLAGE, FLORIDA TABLE X MISCELLANEOUS STATISTICS SEPTEMBER 30, 1992 Date of Incorporation Form of Government Area Miles of Streets Number of Street Lights Fire Protection: Number of Stations Number of Firemen and Officers (operated by Dade County) Police Protection: Number of Stations Number of Policemen and Officers Education: 1. University: Number of Classrooms Number of Teachers Number of Students 2. Elementary School: Number of Classrooms Number of Teachers Number of Students 3. Preschool and Centers: Number of Classrooms Number of Teachers Number of Students Building Permits (new construction) Recreation /Culture: Number of Parks Number of Libraries Number of Volumes Number of Employees Source: Miami Shores Village -73- 1932 Council /Manager 2i square miles 40 1,038 1 7 1 33 80 456 6,496 61 89 1,626 17 40 288 0 3 1 61,500 155 Supplementary Auditor's Reports Section RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS 1320 SOUTH DIXIE HIGHWAY PENTHOUSE CORAL GABLES, FLORIDA 33146 -2964 TELEPHONES: DADE (305) 667 -0412 BROWARD (305) 764 -7717 FAX: (305) 665-7456 700 SOUTHEAST THIRD AVENUE SUITE 400 FT. LAUDERDALE, FLORIDA 33316 -1102 TELEPHONES: BROWARD (305) 764 -7717 DADE (305) 667 -0412 FAX: (305) 764-7835 Independent Auditor's Report on Internal Control Structure in Accordance with Government Auditing Standards Honorable Mayor and Village Council Miami Shores Village, Florida We have audited the general purpose financial statements of Miami Shores Village, Florida as of and for the year ended September 30, 1992 and have issued our report thereon dated January 22, 1993. We conducted our audit in accordance with generally accepted auditing standards and 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. In planning and performing our audit of the financial statements of Miami Shores Village, Florida for the year ended September 30, 1992, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. The management of Miami Shores Village, Florida is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. -74- MEMBER OF SUMMIT INTERNATIONAL ASSOCIATES, INC. WITH OFFICES IN PRINCIPAL CITIES THROUGHOUT THE WORLD. MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRIVATE COMPANIES PRACTICE SECTION MEMBER OF THE FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor and Village Council Miami Shores Village, Florida Page Two For the purpose of this report we have classified the significant internal control structure policies and procedures in the following categories: • Cash and Investments • Revenues and Receivables • Budget • Accounts Payable and Related Expenditures • Inventory • Property and Equipment • General Ledger For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of management the Mayor and Village Council. This restriction is not intended to limit the distribution of this report which is a matter of public record. Coral Gables, Florida January 22, 1993 -75- RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS 1320 SOUTH DIXIE HIGHWAY PENTHOUSE CORAL GABLES, FLORIDA 33146 -2964 TELEPHONES: DADE (305) 667 -0412 BROWARD (305) 764 -7717 FAX: (305) 665-7456 700 SOUTHEAST THIRD AVENUE SUITE 400 FT. LAUDERDALE, FLORIDA 33316 -1102 TELEPHONES: BROWARD (305) 764 -7717 DADE (305) 667 -0412 FAX: (305) 764-7835 Independent Auditor's Report on Compliance Performed in Accordance with Government Auditing Standards Honorable Mayor and Village Council Miami Shores Village, Florida We have audited the general purpose financial statements of Miami Shores Village, Florida as of and for the year ended September 30, 1992 and have issued our report thereon dated January 22, 1993. We conducted our audit in accordance with generally accepted auditing standards and 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. Compliance with laws, regulations, contracts and grants applicable to Miami Shores Village is the responsibility of Miami Shores Village's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of Miami Shores Village's compliance with certain provisions of laws, regulations, contracts and grants. However, our objective was not to provide an opinion on overall compliance with such provisions. The results of our tests indicate that with respect to the items tested, Miami Shores Village complied in all material respects with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that Miami Shores Village had not complied in all material respects with those provisions. In connection with our examination of the financial statements of Miami Shores Village, Florida for the year ended September 30, 1992, we report the following in accordance with Chapter 10.550 Rules of the Auditor General Local Governmental Entity Audits which requires that this report specifically address but not be limited to the matters outlined in Rule 10.554(1)(f): 1. No irregularities were reported in the preceding annual financial audit. 2 Recommendations made in the preceding annual financial audit have been followed except as addressed in this report. -76- MEMBER OF SUMMIT INTERNATIONAL ASSOCIATES, INC. WITH OFFICES IN PRINCIPAL CITIES THROUGHOUT THE WORLD. MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRIVATE COMPANIES PRACTICE SECTION MEMBER OF THE FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor and Village Council Miami Shores Village, Florida Page Two 3. Recommendations to improve the local governmental entity's present financial management, accounting procedures, and internal accounting controls have been addressed in this report. 4. During the course of our examination, nothing came to our attention that caused us to believe that Miami Shores Village, Florida: a. Was in violation of any laws rules or regulations. b. Made any illegal or improper expenditures. c. Had improper or inadequate accounting procedures except as addressed in this report. d. Failed to record financial transactions which could have a material effect on the City's general purpose financial statements. e. Had other inaccuracies irregularities shortages and defalcations. Our examination was not directed primarily toward obtaining knowledge toward all possible improprieties and accordingly our study was limited as described in the second paragraph of this report. The financial report for the year ended September 30, 1992 filed with the Department of Banking and Finance pursuant to Section 218.32 Florida Statutes was in agreement with the annual financial audit report for the same period. The Rules of the Auditor General - County and District Tangible Property Chapter 10.400 are not applicable to the Village of Miami Shores Florida. This report is intended solely for use of management and the Auditor General of the State of Florida and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which upon acceptance by the Council of Miami Shores Village, Florida is a matter of public record. lza�- .I. zw� Coral Gables, Florida January 22, 1993 -77- RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS 1320 SOUTH DIXIE HIGHWAY PENTHOUSE CORAL GABLES, FLORIDA 33146 -2964 TELEPHONES: DADE (305) 667 -0412 BROWARD (305) 764 -7717 FAX: (305) 665 -7456 700 SOUTHEAST THIRD AVENUE SUITE 400 FT. LAUDERDALE, FLORIDA 33316 -1102 TELEPHONES: BRONVARD (305) 764 -7717 DADE (305) 667 -0412 FAX: (305) 764-7835 Independent Auditor's Reyort on Supplementary Schedule of Federal Financial Assistance Honorable Mayor and Village Council Miami Shores Village, Florida We have audited the accompanying general purpose financial statements of the Miami Shores Village, Florida, and the combining and individual fund and account group financial statements of the Miami Shores Village, Florida, as of and for the year ended September 30, 1992, and have issued our report thereon dated January 22, 1993. These general purpose financial statements are the responsibility of Miami Shores Village, Florida's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose 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 opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of Miami Shores Village, Florida, taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 4,1�1 It Z061 Coral Gables, Florida January 22,1993 -78- MEMBER OF SUMMIT INTERNATIONAL ASSOCIATES, INC. WITH OFFICES IN PRINCIPAL CITIES THROUGHOUT THE WORLD. MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRIVATE COMPANIES PRACTICE SECTION MEMBER OF THE FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Miami Shores Village, Florida Schedule of Federal Financial Assistance for the Year Ended September 30, 1992 Federal Pass - Through Federal Grantor/ CFDA Grantor's Pass - Through Grantor /Program Title Number Number Federal Emergency Management Agency Disaster Assistance Program Passed Through State of Florida Department of Community Affairs. Total Federal Assistance Expended 83.516 -79- 9380- 1R- 11 -23 -02 -013 Disbursement/ Expenditures 464 229 464 229 RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS 1320 SOUTH DIXIE HIGHWAY PENTHOUSE CORAL GABLES, FLORIDA 33146 -2964 TELEPHONES: DADE (305) 667 -0412 BROWARD (305) 764 -7717 FAX: (305) 665-7456 700 SOUTHEAST THIRD AVENUE SUITE 400 FT, LAUDERDALE, FLORIDA 33316 -1102 TELEPHONES: BRONVARD (305) 764 -7717 DADE (305) 667 -0412 FAX: (305) 764 -7835 Independent Auditor's Report on the Internal Control Structure Used In Administering Federal Financial Assistance Programs Honorable Mayor and Village Council Miami Shores Village, Florida We have audited the accompanying general purpose financial statements of Miami Shores Village, Florida, as of and for the year ended September 30, 1992, and have issued our report thereon dated January 22, 1993. We have also audited Miami Shores Village, Florida's compliance with requirements applicable to major federal financial assistance programs and have issued our report thereon dated January 22, 1993. We conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Circular A -128, "Audits of State and Local Governments." Those standards and OMB Circular A -128 [A -133] require that we plan and perform the audit to obtain reasonable assurance about whether Miami Shores Village, Florida, complied with laws and regulations, noncompliance with which would be material to a major federal financial assistance program. In planning and performing our audit for the year ended September 30, 1992, we considered the Village's internal control structure in order to determine our auditing procedures for purpose of expressing our opinion on the Village's general purpose financial statements and on its compliance with requirements applicable to major programs and not to provide assurance on the internal control structure. This report addresses our consideration on internal control policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated January 22, 1993. The management of Miami Shores Village, Florida, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. -80- MEMBER OF SUMMIT INTERNATIONAL ASSOCIATES, INC. WITH OFFICES IN PRINCIPAL CITIES THROUGHOUT THE WORLD. MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRIVATE COMPANIES PRACTICE SECTION Mpm RFR (1F TFIF F OPMA IACTITrTF !1C C..CRTIFI n p1'RI .ir Arroi c-rA\TC Honorable Mayor and Village Council Miami Shores Village, Florida Page Two in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: 1. General requirements • Political activity • Davis -Bacon Act • Civil rights • Cash management • Relocation assistance and real property acquisition • Federal financial reports • Allowable costs /Cost principles • Drug -free Workplace Act • Administrative requirements 2. Specific requirements • Types of services • Eligibility • Matching, level of effort • Special reporting • Cost allocation • Special requirements, if any • Monitoring subrecipients 3. Claims for advances and reimbursements 4. Amounts claimed or used for matching For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended September 30, 1992, Miami Shores Village expended 42 percent of its total federal financial assistance under major federal financial assistance programs. -81- Honorable Mayor and Village Council Miami Shores Village, Florida Page Three We performed tests of controls, as required by OMB circular A -128 to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that was considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to each of the Village's major federal financial assistance programs, which are identified in the accompanying schedule of federal financial assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We did not note any certain matters involving the internal control structure and its operation that we considered to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Village's ability to administer federal financial assistance programs in accordance with applicable laws and regulations. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. This report is intended for the information of the Honorable Mayor and Village Council. However, this report is a matter of public record and its distribution is not limited. Coral Gables, Florida January 22, 1993 -82- RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS 1320 SOUTH DIXIE HIGHWAY PENTHOUSE CORAL GABLES, FLORIDA 33146 -2964 TELEPHONES: DADE (305) 667 -0412 BROWARD (305) 764 -7717 FAX: (305) 665-7456 700 SOUTHEAST THIRD AVENUE SUITE 400 FT. LAUDERDALE, FLORIDA 33316 -1102 TELEPHONES: BROWARD (305) 764 -7717 DADE (305) 667 -0412 FAX: (305) 764 -7835 Independent Auditor's Report on Miami Shores Village, Florida Compliance with General Requirements ApRlicable to Federal Assistance Programs Honorable Mayor and Village Council Miami Shores Village, Florida We have audited the accompanying general purpose financial statements of Miami Shores Village, Florida, as of and for the year ended September 30, 1992, and have issued our report thereon dated January 22, 1993. We have applied procedures to test Miami Shores Village, Florida, compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended September 30, 1992. The general requirements tested were if expenditure was allowed or not allowed, reporting requirements, claims for advances and reimbursements. Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than in audit, the objective of which is the expression of an opinion on Miami Shores Village, Florida's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Miami Shores Village, Florida, had not complied, in all material respects, with those requirements. This report is intended for the information of the Honorable Mayor and Village Council. However, this report is a matter of public record and its distribution is not limited. Coral Gables, Florida January 22, 1993 -83- MEMBER OF SUMMIT INTERNATIONALASSOCIATES, INC. WITH OFFICES IN PRINCIPAL CITIES THROUGHOUT THE WORLD. MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRIVATE COMPANIES PRACTICE SECTION MFMRFR nF THE FLORIDA INS'FITIITF. OF CPRTIFIFD PI'RI.IC ACCOUNTANTS RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS 1320 SOUTH DIXIE HIGHWAY 700 SOUTHEAST THIRD AVENUE PENTHOUSE SUITE 400 CORAL GABLES, FLORIDA 33146 -2964 FT. LAUDERDALE, FLORIDA 33316 -1102 TELEPHONES: DADE (305) 667 -0412 TELEPHONES: BROWARD (305) 764 -7717 BROWARD (305) 764 -7717 DADE (305) 667 -0412 FAX: (305) 665 -7456 FAX: (305) 764 -7835 Independent Auditor's Report on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance Programs Honorable Mayor and Village Council Miami Shores Village, Florida We have audited the general purpose financial statements of Miami Shores Village, Florida, as of and for the year ended September 30, 1992 and have issued our report thereon dated January 22, 1993. We have also audited the Miami Shores Village, Florida's compliance with the requirements of governing specific requirements of testing whether expenditures are allowed or not allowed; eligibility; reporting; claims for advances and reimbursements that are applicable to each of its major federal financial assistance programs, which are identified in the accompanying schedule of federal financial assistance, for the year ended September 30, 1992. The management of Miami Shores Village, Florida is responsible for the Village's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on the audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and OMB Circular A -128, "Audits of State and Local Governments." Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Village's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, Miami Shores Village, Florida, complied, in all material respects, with the requirements governing specific requirements that were tested and listed in the first paragraph that are applicable to each of its major federal financial assistance programs for the year ended September 30, 1992. This report is intended for the information of the Honorable Mayor and Village Council. However, this report is a matter of public record and its distribution is not limited. Coral Gables, Florida January 22, 1993 -84- MEMBER OF SUMMIT INTERNATIONAL ASSOCIATES, INC. WITH OFFICES IN PRINCIPAL CITIES THROUGHOUT THE WORLD. MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRIVATE COMPANIES PRACTICE SECTION MEMBER OF THE FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS