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1993FFM iami Shores Village Florida iiij !a R! O,- yo R�� Comprehensive Annual Financial Report Fiscal Year Ended September 30, 1993 MIAMI SHORES VILLAGE FLORIDA Comprehensive Annual Financial Report Fiscal Year Ended September 30, 1993 MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 309 1993 Prepared By: FINANCE DEPARTMENT Patricia Varney Finance Director MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1993 TABLE OF CONTENTS INTRODUCTORY SECTION: PAGE Letter of Transmittal 1 - 7 Village Officials 8 Organization Chart 9 Certificate of Achievement for Excellence in Financial Reporting 10 FINANCIAL SECTION: INDEPENDENT AUDITOR'S REPORT 11 GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) Combined Balance Sheet - All Fund Types and Account Groups 14 -15 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 16 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Budgeted Govern- mental Fund Types 17 Combined Statement of Revenues, Expenses and Changes in Retained Earnings /Fund Balances - All Proprietary Fund Types and Pension Trust Funds 18 Statement of Cash Flows - Proprietary Fund Types 19 Notes to Financial Statements 21 -36 Required Supplementary Information 37 -39 SUPPLEMENTAL STATEMENTS INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS Governmental Fund Types: General Fund: Comparative Balance Sheets 41 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 42 -45 MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1993 TABLE OF CONTENTS (Continued) PAGE INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS (Continued) Governmental Fund Types: Capital Projects: Comparative Balance Sheet 47 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 48 Proprietary Fund Types: Internal Service: Comparative Balance Sheet 49 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings 50 Fiduciary Fund Types: Trust and Agency Funds: Combining Balance Sheet - All Fiduciary Fund Types 51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Expendable Trust Funds 52 Balance Sheet - Pension Trust Funds 53 Statement of Revenues, Expenses and Changes in Fund Balances - Pension Trust Funds 54 Statement of Changes in Assets and Liabilities - Deferred Compensation Fund 55 General Fixed Assets Account Group: Schedule of General Fixed Assets - By Source 57 C Schedule of General Fixed Assets - By Function and Activity Jo Schedule of Changes in General Fixed Assets - By Function and Activity 59 MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1993 TABLE OF CONTENTS (Continued) STATISTICAL SECTION: PAGE Comments Relative to Statistical Section 61 Table I - General Governmental Expenditures by Function - Independent Auditor's Report on Compliance Performed in 75 -76 Last Ten Fiscal Years 62 Table II - General Revenues by Source - Last Ten Fiscal Years 63 Table III - Property Tax Levies and Collections - Last Ten 90 'O Independent Auditor's Report on the Internal Control Structure Fiscal Years 64 Table IV - Assessed Value of Taxable Property - Last Ten Fiscal Compliance with the General Requirements Applicable to Federal 82 65 Years Report on Compliance With Specific Requirements Table V - Property Tax Rates - All Overlapping Governments - Schedule of Findings and Questioned Costs Last Ten Fiscal Years 66 Table VI - Computation of Overlapping Debt Service 67 Table VII - Demographic Statistics - Last Ten Fiscal Years 68 Table VIII - Property Value, Construction and Bank Deposits - Last Ten Fiscal Years 69 Table IX - Principal Taxpayers 70 71 Table X - Miscellaneous Statistics SUPPLEMENTARY AUDITOR'S REPORTS SECTION: Independent Auditor's Report on Internal Control Structure in 73_74 Accordance With Government Auditing Standards Independent Auditor's Report on Compliance Performed in 75 -76 Accordance With Government Auditing Standards Independent Auditor's Report on Supplementary 77 Schedule of Federal Financial Assistance Schedule of Federal Financial Assistance 90 'O Independent Auditor's Report on the Internal Control Structure 79 -81 Used in Administering Federal Financial Assistance Programs Independent Auditor's Report on Miami Shores Village, Florida Compliance with the General Requirements Applicable to Federal 82 Assistance Programs Independent Auditor's Report on Compliance With Specific Requirements 83 -84 Applicable to Major Federal Financial Assistance Programs Schedule of Findings and Questioned Costs 85 Introductory Section OR iL ^yOV 10050 N.E. SECOND AVENUE OR)p► MIAMI SHORES, FLORIDA 33138 -2362 �a. �►' TELEPHONE (305) 795 -2209 FAX (305) 756 -8972 November 18, 1993 Village Council Miami Shores Village Miami Shores, Florida 33138 Dear Council Members: Submitted herewith is the Comprehensive Annual Financial Report of the Village of Miami Shores, Florida for the fiscal year ended September 30, 1993 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 four 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 t}ii a cacti nn The Financial Section contains the Independent Auditor's Report 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 1992 -1993 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 fourth section includes the Supplementary Auditor's Reports required under Governmental Auditing Standards and Circular A -128. -1- Village Council Miami Shores Village THE 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 10,000 residents. In addition, during the school year, the Village also provides services for an additional 6,850 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 _ d_ _ n t1l ,., 1 ; ,ti.; � ; *., .,f f4 -."ni ml rannrAc fnr nrpnarinv financial L18e UL (11SpV$1t1Vll attu Luc iclinviii� va i +... 1---- �- �- - --- --- r--r - - --o --- -_____ 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. CASH MANAGEMENT The Village maintains a pooled cash account for all funds under its control. The cash management program involves a mix of 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. -2- Village Council Miami Shores Village The Village invested mainly in the State of Florida Local Government Investment Trust Fund for fiscal year 1993. The average yields on maturing investments during the year ranged from 3.43% to 3.98 %, producing interest earnings for the year of $103,782, excluding the Village's Pension Fund. GENERAL GOVERNMENT FUNCTIONS General Fund revenues amount to $7,821,025 for the period, an increase of 5% over the previous fiscal year. General property taxes produced 34.7% of the General Fund revenues during the year compared to 33.2% 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 Taxes, there is an increase of $296,449. This increase is mainly due to increase in property values and the imposing of a half a mill increase for the hurricane reserve fund. The funding of this half a mill was later re- appropriated by the Council to payoff the police 300 MHZ radio and to set up a reserve fund for future police vehicles. The increase in Intergovernmental Revenue is due to the increase in Half cents sales tax. In Fiscal Year 1993, the Village received $495,286 compared to $410,653 1111 A.. 'or Fines a forfeitures, the Vi l l age recPivPri delinquent in Fiscal Year 1774 . r» tvt Fines and charges from outstanding garbage bills. EXPENDITURES Operating expenditures in the General Fund for governmental purposes amounted to $7,001,430, a decrease of 2% over the preceding year. The expenditures for the major functions of the Village are shown in the following tabulation: EXPENDITURES General government Public safety Public services Culture /recreation Debt service Totals 1993 1993 1992 1992 PERCENT PERCENT PERCENT TO PERCENT INCREASE AMOUNT TOTAL TO TOTAL TO (DECREASE) REVENUE SOURCES AMOUNT TOTAL AMOUNT TOTAL OVER 1992 Taxes (all sources) $4,034,053 51.61 $3,737,604 50.4% $296,449 Licenses and permits 161,227 2.1% 133,284 1.8% 27,943 Intergovernmental revenue 968,227 12.41 883,719 11.9% 84,508 Charges for services 1,785,167 22.8% 1,826,078 24,6% (40,911) Fines and forfeitures 112,883 1.4% 79,718 1.1% 33,165 Miscellaneous revenue 759.468 9.7% 753.563 10.2% 5.905 Totals S7.821.025 100.0% S7,413,966 100.0% 407 059 REVENUE Three revenue sources experienced significant increases during the fiscal year. In the category of Taxes, there is an increase of $296,449. This increase is mainly due to increase in property values and the imposing of a half a mill increase for the hurricane reserve fund. The funding of this half a mill was later re- appropriated by the Council to payoff the police 300 MHZ radio and to set up a reserve fund for future police vehicles. The increase in Intergovernmental Revenue is due to the increase in Half cents sales tax. In Fiscal Year 1993, the Village received $495,286 compared to $410,653 1111 A.. 'or Fines a forfeitures, the Vi l l age recPivPri delinquent in Fiscal Year 1774 . r» tvt Fines and charges from outstanding garbage bills. EXPENDITURES Operating expenditures in the General Fund for governmental purposes amounted to $7,001,430, a decrease of 2% over the preceding year. The expenditures for the major functions of the Village are shown in the following tabulation: EXPENDITURES General government Public safety Public services Culture /recreation Debt service Totals 1993 1992 PERCENT PERCENT TO TO AMOUNT TOTAL AMOUNT TOTAL $ 801,859 11.41 $ 710,730 10.0% 2,707,765 36.7% 2,700,073 37.9% 2,052,268 29.3% 2,177,650 30.6% 1,253,360 17.91 1,203,495 16.9% 186.178 2.7% 329,034 4.6% $7.001.430 100.01 -3- INCREASE (DECREASE) OVER 1992 $ 91,129 7,692 (125,382) 49,865 1142.856) 7 120 982 100.0% $(119,552) Village Council Miami Shores Village The increase in General government is due to the payout for the former Village Manager and hurricane related expenditures. The decrease in Public Services is due to higher hurricane expenditures in Fiscal Year 1992. Most clean -up of hurricane debris was performed in Fiscal Year 1992. As for Culture /Recreation, the Tennis Pro was hired under contract in Fiscal Year 1992. The Tennis Pro was paid a minimum pay and retained all tennis classes revenue. In Fiscal Year 1993, this position was re- classified as employee. The Tennis Pro was paid at a much higher salary and the Village retained all revenue. Decrease in Debt Service is because of the maturity of the Treasury Bill that was issued as collateral to the 10 year loan. This amount was applied to the principal and therefore reduced the debt service. Total fund balance of the General Fund at September 30, 1993 was $1,781,730 as compared to $1,334,205 at September 30, 1992. Presented below is an analysis of General Fund expendable resources designated for capital outlay at September 30, 1993: Total Fund Balance - September 30, 1993 Less: Fund balance - reserved for encumbrances Unreserved fund balance maintained for emergencies and contingencies Designated for Future Use Reserved for Prepaid Expenses SUBTOTAL - DESIGNATED FOR CAPITAL OUTLAY Less: Other asset balances included in fund balance which do not represent expendable resources - Inventories (gasoline, oil and recreation items for resale) Petty cash EXPENDABLE RESOURCES AVAILABLE FR CAPITAL VUILAY ^ CAPITAL PROJECTS FUND $1,781,730 407,546 745,434 225,155 120.738 $ 282,857 49,407 1.810 S Uzi r.4n In fiscal year 1991, the Village began the Capital Projects Fund. In fiscal year 1993, $369,488 was transferred from General Fund and Trust Funds 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 $18,928 Public Safety 81,088 Public Services 21,077 Culture /Recreation 40,617 Debt Service 88,130 -4- Village Council Miami Shores Village SPECIAL REVENUE FUND In Fiscal Year 1992 the Village negotiated an interlocal agreement for the Village to participate in the County's stormwater utility system. The first billing from Dade County to all users -was July 1993 and was assessed at $2.50 per Equivalent Residential Unit. This fund will be transferred from Special Revenue Fund to Enterprise Fund when capital expenditures commence. PROPRIETARY OPERATIONS - INTERNAL SERVICE FUND Commencing in fiscal year 1990, the Village instituted a protected self- insurance program with a self- insurance retention of $25,000 per occurrence for property and liability and $75,000 for workers compensation. The aggregate loss reserve fund is $350,000. For Fiscal Year 1992, excess coverage premiums, state fees and management fees totalled $238,921, claims of $112,979 were paid and $139,432 was reserved for future claims. As of September 30, 1993, $190,000 was reserved for IBNR (incurred but not reported claims) , resulting in a fund equity of $303,199. GENERAL FIXED ASSETS ACCOUNT GROUP As of September 30, 1993, 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, 1993 the Villages' General Fixed Assets amount to $6,842,854. 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. During the year, the Pension Fund revenues were derived from State of Florida contributions for the police officers of $24,201, employee contributions of $235,273, Village contributions of $172,460 and net investment earnings of $824,861. Fund balance at the end of the year amounted to $9,324,645, as compared to $8,464,145 for the preceding year. -5- Village Council Miami Shores Village 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. 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. In 1993, the Village borrowed $33,900 for a six month period to fund the purchase of public vehicles. This debt was paid off on October 1, 1993. 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 $238,921 in premiums and administrative fees and experienced total payments of claims of $270,154 from fiscal year 1990 to fiscal year 1993. 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 8.66, while Florida statutes impose a cap on millage rates at 10 mills. In July 1993, Miami Shores Village began receiving funds from the interlocal agreement with Dade County on the Stormwater Utility Fund. Revenue is estimated to be of approximately $133;000 per year. The City Administration is looking into establishing special assessment districts for street resurfacing and sidewalk repair. In fiscal year 1994, this will generate additional revenue to finance the programs instead of funding through the General Fund. MAJOR PROJECTS 1. In Fiscal Year 1994, the Council has budgeted $100,000 for marketing the Village of Miami Shores. 2, The Council has adopted an engineering plan for the renovation and improvement of the swimming pool over the next ten years. M Village Council Miami Shores Village 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, 1992. 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, Patricia Varney Finance Director -7- MIAMI SHORES VILLAGE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 1993 VILLAGE OFFICIALS MAYOR William J. Heffernan VILLAGE COUNCIL Michael H. Boyle Robert E. Cook, III Richard M. Fernandez Steven J. Johnson INTERIM VILLAGE MANAGER Tom Benton FINANCE DIRECTOR Patricia Varney VILLAGE ATTORNEY William F. Fann, Jr. VILLAGE AUDITORS Rachlin & Cohen M MIAMI SHORES VILLAGE, FLORIDA Organization Chart As of September 30, 1993 Citizens Boards Department Works Handicapped Services Deputy Village Planning and Zoning General Fund 110180 (number of full -time /part -time personnel) Pension Village Village Personnel Appeals Attorney Council Code Enforcement Historic Preservation 1/0 Library Fine Arts Recreation Advisory Country Club Advisory Beautification Advisory Downtown Revitalization Village Manager 210 Personnel/ Department Works Finance Deputy Village 12/70* General Fund 110180 (number of full -time /part -time personnel) Director *Plus 20 Independent Contractors - Swim Coaches, Tennis Pro and Instructors "Plus three Independent Contract Inspectors Clerk 510 1/0 Police Public Department Works Recreation 44/3 38/2 12/70* General Fund 110180 (number of full -time /part -time personnel) *Plus 20 Independent Contractors - Swim Coaches, Tennis Pro and Instructors "Plus three Independent Contract Inspectors -9- Adrninisiraiion Only Building & Zoning Library 4/0 ** 4/5 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, 1992 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Govemment 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. /J , President i��Z2� Executive Director DIM Financial Section RACHLIN & COHEN 1320 South Dixie Highway CERTIFIED PUBLIC ACCOUN,rANTS & CONSULTANTS Penthouse A PARTN HRSIIIP or PROFESSIONAL AssoCIA rums Coral Gables, Florida 33146 -2964 Dade (305) 667 -0412 Fax (305) 665 -7456 Broward (305) 764 -7717 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 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 of the Miami Shores Village, Florida as of September 30, 1993 and for the year then ended, as listed in the table of contents. These general purpose financial statements and the supplemental statements 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, 1993 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 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, 1993 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. 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. Coral Gables, Florida November 18, 1993 -11- 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) U] H z W W H H U H LL1 O F W H O z u z H O U U W W a O) l0 00 !D 10 {O a O Ul 2 In m Cl) V) N N -I m V) m r-1 m w n m O a o N In N D) o .-1 N O n a m v1 O) a m n m o) O) I--I m a0 o '-I O N o a m N 10 m m n - a o 1 N -I u') rl a oo O W .-I n o N c o n m a -I to n n m In D) a [ o N O m N N a0 .N.. N '-1 N '-I N ro •O " A G O ro H E O co co O O m '•• N V) P P co '•I m O) LO of N W O +' OL V) O tO O O t0 P O -P .0 O O DD r m P O W f)') n fh v) N N d O O co ^ co O N V) m m O N v) co O) O Qf O co 'i P iD d Il MI O m •P h Y•1 Y) m m m �t N 1•-1 a0 N Lo {O H m O I,•I N N E m m m ro a) H A a a G 'o C] LD o H -4 N U' G m m co 7 O -4 m In N N O c o U ro •O N I I I 1 I I I a0 --1 n Lo I n m o n a Io v ]-.- In N '-1 N N X O co lD ID o o a N a0 V) a m N T W a) ro .1 H U N b G o n 07 a N In In ID m m Lo Lo � P. 7 N N d H Q m N ID c') Q O H pG �; F w n O F4 u W rz. W z r-� H w a v °n' N N �•-� OU ro a) H ro U 1 I I I I I 1 I I I I I I I I n W W v u m Lo U U I Z :4 w •o a w f Q) H v) �. L i.••, In �/ L61 7W-1 R+ ro o v s E-1. H Lr Q °z" .4 N O H U G wE H .�� .-rol G W' I o 1 1 I I I I N H %. G v N > P. 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G w � o G Cq tT R :!} G a r= o o C4 W cl G >,a o rG � n w G �G G � -4 4-1 (1) ro O ro N 4 4 O ,4 cct • 4%1 G N N 41 U H O W ro t a O� rl Lr) ON cr1 O co O O LO P4 rl n O m �D m O C C r� O N �o O% C �D �D rl O �D c*1 Cl) �D �D c••1 N O �D �t co W u U CN Ln C, r-I .7 r %D O% Co o z° z z F-1 rl O\ Cl) N u1 co O It N N N O N N y+ Ln W �t rl ur1 lD CT V1 O O tYl Ln w z M �.O a% N\.D O\ O � O O O N � Q H co rl \O I'D N Ln � H �r) r1 �D 1--I � 1 R6+ I rw1 � t I U H UO , D r-4 :t � \�o m �D O O .t aGO W w M N Ln 00 O m �.D �D N F .1 co N n M co 00 M H z W N (t ro bo G ro 'o a) 4. G � o G Cq tT R :!} G a r= o o a� G a� 7 cn H U aO m •� a) G 14 O J-1 y cn C � G •� m >4 o a S4 LW O j G O cn 6 cad r- a) •4 4-) 1.1 w �j rn o ro ro > F a u L) 0 O O O O O O r-I r--1 D1 V1 V1 M M M co co W r + rn M ri .--a O N O O H RWi W � O O N � O O H [�— G4 C) � H O, a O z z W R6+ rw1 � Ln z H o ro a� G a� 7 cn H U aO m •� a) G 14 O J-1 y cn C � G •� m >4 o a S4 LW O j G O cn 6 cad r- a) •4 4-) 1.1 w �j rn o ro ro > F a u L) 0 O O O O O O r-I r--1 D1 V1 V1 M M M co co 0o r + rn M ri .--a O N M N N \.D O a� cn -18- V) F z w z w H F Ln a H z H w O F cn w H O z U z H O U U w w rn ro a� U) Lf) Ln o ro Ln aGO W w G >` � � a, b o bo N (t ro bo G ro 'o a) O � G � o G Cd w G a r= o o cl G >,a o rG (z ro o G �G G � -4 4-1 (1) ro O ro N 4 4 ,4 cct • 4%1 G N N 41 U a) N ro t a H (z o a) F LO P4 rd cz 0 o z° z z a -18- V) F z w z w H F Ln a H z H w O F cn w H O z U z H O U U w w rn MIAMI SHORES VILLAGE, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES INTERNAL SERVICE FUND CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers /users Cash payments to suppliers Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Investment income Net cash provided by investing activities NET INCREASE IN CASH EQUITY IN POOLED CASH AND INVESTMENTS, BEGINNING OF YEAR EQUITY IN POOLED CASH AND INVESTMENTS, END OF YEAR ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income Changes in assets and liabilities: Increase in miscellaneous receivables Increase (Decrease) in prepaid expenses Increase (Decrease) in accounts payable and accrued liabilities Increase in estimated claims insurance Total adjustments Net cash provided by operating activities FISCAL YEAR ENDED SEPTEMBER 30, 1993 1992 $ 491,000 $474,935 (279,711) (299,594) 211,289 175,341 21,638 20,169 21,638 20,169 232,927 195,510 402,308 206,798 $ 635,235 $402,308 $ 139,100 $104,783 - 13,435 2,314 (2,314) 653 (2,724) 69,222 62,161 72,189 70,558 $ 211,289 $ 175,341 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. -19- NOTES TO FINANCIAL STATEMENTS MIAMI SHORES VILLAGE, FLORIDA NOTES TO FINANCIAL STATEMENTS FISCAL YEAR ENDED SEPTEMBER 30, 1993 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 SPECIAL REVENUE FUND is used to account for resources that are restricted by law or other formal action for specific activities. 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. -21- 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 four expendable trust funds (the General Trust, Police Insurance Trust, Law Enforcement Training Trust, Police Forfeitures Trust), and a 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, special revenues and capital projects funds are 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 service 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. -22- 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. 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 Fixed Assets Account Groups are concerned only with the measurement of financial position. They are not involved with the measurement of results of operations. Long -term indebtedness is accounted for in the General Long -Term Debt Account Group. Fixed assets are accounted for in the General Fixed Assets Account Group. 4. Basis of Accounting 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 Fund 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 -23- 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 cash equivalents (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 and not expended, prepaid occupational licenses and refuse collection fees received that have been budgeted to pay expenditures of the subsequent fiscal year. -24- 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, 1993 was $9.12 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 -25- A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 12. 13. 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. Budget and Budgetary Accounting The Village Council approves a total expenditure budget based on projected expenditures and revenues for all governmental funds except for the special revenue fund. 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. -26- 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. CASH At September 30, 1993, the carrying amount of the Village's cash was $536,297 and the bank balance was $146,249. 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. -27- C. INVESTMENTS (Continued) Equity in pooled cash and investments S 3,309,958 Cash with pension trustee 48,968 Investments 9,252,606 Deferred compensation investments 655,040 $13,266,572 D. FIXED ASSETS 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, 1992 ADDITIONS $ 718,531 S 2,050,935 30,293 1,370,431 106,617 2,614,378 202,734 $6,754,275 339 644 BALANCE SEPTEMBER 30, DELETIONS 1993 $ - $ 718,531 - 2,081,228 - 1,477,049 251,066 2,566,046 251 066 $6,842,854 Depreciation is not required and has not been provided on general fixed assets. E. LONG -TERM INDEBTEDNESS 1. Capital Leases The Village entered into CATEGORY CARRYING MARKET 1 2 3 VALUE VALUE Corporate stocks $ - $ - $2,172,474 $2,172,474 $2,172,474 Corporate bonds - - 1,981,345 1,981,345 1,981,345 §_ $4,153,819 $4,153,819 $4,153,819 Investment in: 1987 NCNB Real Estate Fund $ 305,741 915,646 915,646 Sunbank Highgrade Equity 488,300 2,569,374 2,569,374 Suntrust Retirement Reserve Fund 426,140 11,623 11,623 Sunbank Highgrade Bond Fund $1,220,181 1,651,110 1,651,110 State Investment Pool 2,773,663 2,773,663 Deferred Compensation Plan 565,040 665,040 $12,730,275 $12,730,275 Reconciliation of Cash and Investments Total per note B $ 536,297 Total per note C 12,730,275 $13,266,572 Equity in pooled cash and investments S 3,309,958 Cash with pension trustee 48,968 Investments 9,252,606 Deferred compensation investments 655,040 $13,266,572 D. FIXED ASSETS 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, 1992 ADDITIONS $ 718,531 S 2,050,935 30,293 1,370,431 106,617 2,614,378 202,734 $6,754,275 339 644 BALANCE SEPTEMBER 30, DELETIONS 1993 $ - $ 718,531 - 2,081,228 - 1,477,049 251,066 2,566,046 251 066 $6,842,854 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: 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 - 51,628,140 $1,220,181 $407,959 -28- 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: BALANCE BALANCE SEPTEMBER 30, SEPTEMBER 30, 1992 ADDITIONS DELETIONS 1993 Capital lease obligations $ 485,314 $ - $167,698 $ 277,616 Bonds payable 366,038 - 50,657 315,381 Accrued workers' compensation 303,780 17,442 38,572 282,650 Accrued sick leave 257,571 121,779 95,214 284,136 other 5,000 5,000 1997 $1,417,703 $139,221 $352,141 $1,164,783 Maturities on general fund capital lease obligations payable at September 30, 1993 are as follows: (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. -29- PRINCIPAL INTEREST TOTAL Fiscal year ending September 30: 1994 $ 76,844 $18,727 $ 95,571 1995 82,517 13,053 95,570 1996 88,609 6,693 95,570 1997 29,648 (1) 423 30,071 5277,618 38 896 JILL_ 782 (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. -29- 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 were 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, 1993, are as follows: 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, 1993: 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, 1992 $623,046 53,633 arket value 77,557 (94,408) ( 788) at September 30, 1993 S660,616 -30- PRINCIPAL INTEREST TOTAL Fiscal year ending September 30: 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 1998 72,387 5,557 77,744 5315,381 S 73,539 5388,720 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, 1993: 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, 1992 $623,046 53,633 arket value 77,557 (94,408) ( 788) at September 30, 1993 S660,616 -30- 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, 1993, estimated liabilities for self- insured workers' compensation claims amounted to $300,092. These liabilities represent the estimated probable exposure on open claims at September 30, 1993 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 $ 26,572 Long -term portion accounted for in the General Long -Term Debt Account Group 282,650 Total 5309,222 3. Post Retirements Benefits The Village only offers continuation of health insurance benefits to police employees upon retirement. The Village pays up to $100 per month for each retiree. For general employees, this benefit is not offered. The full cost of such benefits are paid by the retirees. 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 mayor 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. - 11 - 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, 1993. The Village's total payroll for all employees was $3,930,079 for the year ended September 30, 1993. The covered payroll represents all compensation paid to active employees covered by the PERS on which contributions are made. Covered Annual Payroll General $1,676,181 Police 1,435,499 $3,111,680 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 35 7 Current Employees: Fully vested 23 16 Partially vested - - Non- vested 38 14 96 37 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;1% 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 %. Subsequent to October 1, 1992, the retirement benefit for the first 15 years of credited service is 2.4 %; plus 2% for the next ten years of service; plus 2.5% in excess of 25 years (maximum of 30 years). 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. -32- 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, 1993. GENERAL POLICE TOTAL Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,493,119 $1,485,330 $2,978,449 Current employees: Accumulated employee contributions with interest 641,854 889,289 1,531,143 Employer financed vested 896,219 2,843,940 3,740,159 Employer financed non - vested 195,520 297,215 492,735 Total pension benefit obligation 3,226,712 5,515,774 8,742,486 -33- 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 (unfunded) pension benefit obligation GENERAL POLICE TOTAL $4,393,643 $5,145,714 $9,539,357* 1,166,931 (370,060) 798,871 Financial effect on the pension benefit obligation of current year changes in: Actuarial assumptions /plan amendment NONE NONE NONE 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 $ 78,763 $ 179,953 $ 258,716 8.0% 8.0% 4.0% 4.0% 2.5% 2.5% *Includes projected Village contribution for fiscal 1994. 4. Contribution Required and Made 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. The contributed amounts were actuarially determined based on an actuarial valuation as of October 1, 1993. Total contributions to the pension plan during 1993 amounted to $431,934. A breakdown of the contribution is as follows: Contributions Requirements: Normal Cost Unfunded actuarial accrued liability Contributions Made: Village Employees State of Florida GENERAL PERCENTAGE OF COVERED CONTRIBUTION PAYROLL POLICE PERCENTAGE OF COVERED CONTRIBUTION PAYROLL $ 87,425 5.2% $157,971 11.0% (96,624) 5.8 18.250 1.3 $( 9,199) .6)% 176 221 12.3% $ 16,960 1.0% $155,500 10.8% 110,571 6.6 124,702 8.7 24.201 1.7 $127,531 7.6% $304,403 21.2% -34- I. EMPLOYEES RETIREMENT SYSTEM (Continued) 4. Contribution Required and Made (Continued) The General Employees and Police plans both use the level dollar method to amortize the unfunded liability over a 30 year period. 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, 1993 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 five years of complete information was available and is presented below. Following these notes is the Required Supplementary information section on pages 37 through 39. An analysis of funding progress for the pension benefit obligation for the period available, fiscal years ended September 30, 1993, 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 7 L 1993 1992 1991 1990 1989 $4,394 $3,835 $3,359 $3,766 $3,236 3,227 2,676 2,571 2,319 2,868 136.1% 143.3% 130.6% 162.4% 112.8% 1,117 1,159 788 1,447 368 1,676 1,326 1,253 1,563 1,625 66.6% 87.4% 62.9% 92.6% 22.6% 1.0% 6.0% 5.2% (1) (1) I. EMPLOYEES RETIREMENT SYSTEM (Continued) 5. Trend Information (Continued) POLICE 1993 1992 1991 1990 1989 1. Net assets available for benefits* $5,146 $3,999 $3,309 $3,516 $2,922 2. Pension benefit obligations 5,516 3,603 3,187 3,162 3,325 3. Percentage funded (1 _ 2) 93.3% 110.9% 103.8% 111.2% 87.9% 4. Assets in excess of pension (unfunded) benefit obligation (2 - 1) (370) 396 122 354 (403) 5. Annual covered payroll 1,435 1,341 1,145 1,042 1,131 6. Assets in excess of (unfunded) pension benefit obligation as a percentage of covered payroll (4 5) (25.8 %) 7. Employer contributions as a percent- age of annual covered payroll. 10.8% *At market value. (1) -Not available -36- 29.5% 10.7% 33.9% (35.6 %) 10.8% 7.4% (1) (1) REQUIRED SUPPLEMENTARY INFORMATION MIAMI SHORES VILLAGE, FLORIDA EMPLOYEES RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE GENERAL Revenues by Source Percentage CONTRIBUTIONS (1) Year Ended of Coverage Investment September 30, Payroll Village Employee State Income Total 1993 1.0% $ 16,960 $110,571 $ - $ 389,991 $ 517,522 1992 5.9 79,083 81,893 - 356,816 517,797 1991 5.2 65,460 79,296 - 523,343 668,099 1990 4.2 65,460 59,137 - (302,900) (178,303) 1989* 10.1 164,666 115,041 - 454,326 734,033 1984 - 1988* (2) (2) (2) (2) Expenses by Type Year Ended Administrative September 30, Benefits Expense Refunds Total 1993 $159,808 $39,896 $12,157 $211,861 1992 158,001 54,881 27,129 240,011 1991 138,734 66,866 17,456 223,056 1990 98,604 67,290 80,925 246,819 1989* 120,707 46,072 45,288 212,067 1984 - 1988* (2) (2) (2) (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. -37- MIAMI SHORES VILLAGE, FLORIDA EMPLOYEES RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE POLICE Revenues by Source September 30, Percentage Expense CONTRIBUTIONS (1) Total 1993 Year Ended of Coverage $ 5,106 $184,434 1992 Investment 57,121 September 30, Payroll Village Employee State Income Total 1993 10.8% $155,500 $124,702 $24,201 $ 434,870 $ 739,273 1992 10.3 137,960 125,321 21,528 397,855 682,664 1991 11.8 135,559 110,414 20,599 531,235 797,807 1990 8.2 885,010 75,226 23,028 (307,468) (124,203) 1989* 17.2 194,052 79,149 21,386 417,516 712,103 1984 - 1988* (2) (2) (2) (2) (2) Expenses by Type Year Ended Administrative September 30, Benefits Expense Refunds Total 1993 $132,598 $46,730 $ 5,106 $184,434 1992 59,590 57,121 - 116,711 1991 45,830 27,047 17,349 90,226 1990 37,234 27,219 - 64,453 1989* 49,895 23,906 36,235 110,036 1984 - 1988* (2) (2) (2) (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. -38- MIAMI SHORES VILLAGE, FLORIDA EMPLOYEES RETIREMENT SYSTEM REQUIRED SUPPLEMENTARY INFORMATION - COMBINED POLICE AND GENERAL SCHEDULE OF REVENUES BY SOURCE AND EXPENSES BY TYPE (2) (1) Contributions were made in accordance with actuarially determined contribution requirements. (2) Ten years of allocated information is unavilable; information is presented combined only for as many years as complete information is available. -39- Revenues by Source PERCENTAGE CONTRIBUTIONS (1) OF COVERED INVESTMENT EMPLOYEE EMPLOYER PAYROLL INCOME TOTAL Year ended January 1: 1984 $101,857 $167,375 9.3 $350,874 $620,106 1985 121,264 164,075 8.2 234,800 520,139 1986 126,748 184,457 8.5 672,347 983,552 1987 130,309 266,262 12.2 325,532 722,103 1988 141,800 266,780 9.4 391,201 799,781 Expenses by Type ADMINISTRATIVE BENEFITS EXPENSES REFUNDS TOTAL Year ended January 1: 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. (2) Ten years of allocated information is unavilable; information is presented combined only for as many years as complete information is available. -39- INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS GOVERNMENTAL FUND TYPES GENERALFUND 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 LIABILITIES_ AND FUND EQUITY LIABILITIES: Accounts payable $ 159,879 $ 282,584 Accrued liabilities 71,084 110,154 Workers' compensation claims payable 26,572 22,889 Deferred revenues 603,703 576,087 Total liabilities 861,238 991,714 FUND EQUITY: Reserved for: Encumbrances 407,546 279,271 Prepaid costs 120,738 86,412 Unreserved: Designated for capital outlay 282,857 223,088 Designated for future use 225,155 - Designated for emergencies and contingencies 745,434 745,434 Total fund equity 1,781,730 1,334,205 Total liabilities and fund equity $2,642,968 $2,325,919 -41- SEPTEMBER 30, 1993 1992 ASSETS Equity in pooled cash and investments $1,877,523 $1,154,994 Accounts receivable 758,443 735,150 Allowance for uncollectible accounts receivable (283,580) (204,825) Due from other governments: State of Florida 62,610 68,535 Metropolitan Dade County 480 17,510 Federal Emergency Managment Assistance 57,347 426,690 120,437 512,735 Inventories 49,407 41,453 Prepaid costs and other assets 120,738 86,412 Total assets $2,642,968 $2,325,919 LIABILITIES_ AND FUND EQUITY LIABILITIES: Accounts payable $ 159,879 $ 282,584 Accrued liabilities 71,084 110,154 Workers' compensation claims payable 26,572 22,889 Deferred revenues 603,703 576,087 Total liabilities 861,238 991,714 FUND EQUITY: Reserved for: Encumbrances 407,546 279,271 Prepaid costs 120,738 86,412 Unreserved: Designated for capital outlay 282,857 223,088 Designated for future use 225,155 - Designated for emergencies and contingencies 745,434 745,434 Total fund equity 1,781,730 1,334,205 Total liabilities and fund equity $2,642,968 $2,325,919 -41- MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Total revenues $7,909,766 $7,821,025 -42- $(88,741) $7,413,966 FISCAL YEAR ENDED SEPTEMBER 30, 1993 1992 VARIANCE REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL Revenues: Taxes: General property taxes, current and delinquent $2,743,947 $2,718,832 $(25,115) $2,464,596 Franchise taxes 476,960 465,530 (11,430) 463,182 Utility taxes 850,150 849,691 ( 459) 809,826 Total taxes 4,071,057 4,034,053 (37,004) 3,737,604 Licenses and permits: Business licenses 50,000 51,043 1,043 47,637 Building permits 63,500 92,360 28,860 73,602 Other licenses and permits 12,800 17,824 5,024 12,045 Total licenses and permits 126,300 161,227 34,927 133,284 Intergovernmental revenues: State shared revenues: Cigarette taxes 13,000 12,930 ( 70) 12,772 State revenue sharing 220,293 239,752 19,459 232,742 Beverage licenses 2,000 722 ( 1,278) 1,706 Local governmental half cent 415,000 495,286 80,286 410,653 sales tax Department of transportation (landscape maintenance) 17,318 17,318 - - 17,318 Local option gas tax trust 159,762 168,875 9,113 136,262 County shared revenue: County occupational licenses 36,500 25,008 (11,492) 34,524 School crossing programs 9,500 8,011 ( 1,489) 9,429 28,313 Recycling grant - 325 325 Total intergovernmental revenues 873,373 968,227 94,854 883,719 Charge for services: Public safety 186,775 191,666 4,891 157,024 Physical environment 1,421,979 1,389,826 (32,153) 1,477,587 Transportation 16,000 15,417 ( 583) 12,551 Culture /recreation 194,800 188,258 ( 6,542) 178,916 Total charges for services 1,819,554 1,785,167 (34,387) 1,826,078 Fines and forfeitures: Court fines and costs 72,000 66,652 ( 5,348) 72,465 Other 108,800 46,231 (62,569) 7,253 Total fines and forefeitures 180,800 112,883 (67,917) 79,718 Miscellaneous revenue: 87,000 57,692 (29,308) 66,124 Interest income Donations from various sources 3,128 2,298 ( 830) 7,392 - Rents 172,740 177,543 4,803 158,344 Other revenue 575,814 521,935 (53,879) 521,703 Total miscellaneous revenue 838,682 759,468 (79,214) 753,563 Total revenues $7,909,766 $7,821,025 -42- $(88,741) $7,413,966 MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONTINUED) FISCAL YEAR ENDED SEPTEMBER 30 1993 1992 VARIANCE REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL Expenditures: 164,674 162,003 2,671 Current: 50,245 42,735 7,510 General Government: Village Council: 4,800 5 $ - Personnel services $ 5 13,940 $ 4,830 9,110 Operating expenses 61,968 9,610 52,358 1 Village Attorney: Personnel services 1,500 1,500 - Operating expenses 86,678 70,077 16,601 Village Manager: Personnel services 203,335 200,021 3,314 Operating expenses 29,676 26,177 3,499 Finance: Personnel services 164,674 162,003 2,671 Operating expenses 50,245 42,735 7,510 Other General Government Services Non - departmental: 4,800 3,046 1,754 Personnel Services Operating expenses 283,181 278,866 4,315 Non - operating expenses 61,968 9,610 52,358 1 Capital outlay 2,990 2,989 Downtown revitalization: Operating expenses - - - Total general government 902,992 801,859 101,133 Public safety: Law enforcement: Personnel services 2,342,254 2,309,226 33,028 Operating expenses 233,373 226,543 6,830 Non - operating expenses - - Capital outlay - - - Mobile crime watch: Operating expenses - - Building and zoning: Personnel services 143,136 137,893 5,243 Operating expenses 41,660 33,351 8,309 Capital outlay 752 752 - Total public safety $2,761,175 $2,707.765 $ 53,410 -43- $ 5 3,782 1,200 96,265 163,513 22,280 156,947 38,122 8,725 193,622 19,430 2,989 3,850 710,730 2,301,674 212,461 1,284 2,528 6,320 140,067 35,090 649 $2,7 MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONTINUED) FISCAL YEAR ENDED SEPTEMBER 30, 1993 1992 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 of revenues over expenditures $137,809 $137,346 463 $ 131,841 13,650 12,115 1,535 11,942 297,833 275,791 22,042 293,708 330,921 350,706 (19,785) 492,003 280,656 73,344 207,312 127,251 566,183 562,707 3,476 556,111 650,170 638,131 12,039 563,823 14,580 2,128 12,452 971 2,291,802 2,052,268 239,534 2,177,650 ✓ 556,961 536,395 20,566 490,825 207,608 186,688 20,920 174,418 16,927 8,531 8,396 16,658 275,997 243,418 32,579 252,498 83,696 59,724 23,972 59,030 33,052 - 33,052 668 161,641 160,520 1,121 157,990 56,569 55,022 1,547 51,020 3,098 3,062 36 388 1,395,549 1,253,360 142,189 1,203,495 157,490 157,490 - 288,206 28,688 28,688 40,828 186,178 186,178 329,034 7,537,696 7,001,430 536,266 7,120,982 $ 372,070 $ 819,595 -44- $447,525 $ 292,984 MIAMI SHORES VILLAGE, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONTINUED) FISCAL YEAR ENDED SEPTEMBER 30, 1993 1992 VARIANCE REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL Excess of revenues over expenditures Other financing uses: Operating transfers out Total other financing uses Excess (deficiency) of revenues and other financing sources (uses) over expenditures Fund balance, beginning of year Fund balance, end of year $ 372,070 $ 819,595 (372,070) (372,070) (372,070) (372,070) - 447,525 1,334,205 1,334,205 $1,334,205 $1,781,730 -45- $447,525 $ 292,984 - (323,128) (324,128) 447,525 ( 31,144) 1,365,349 5447,525 $1,334,205 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 ASSETS Equity in pooled cash and investments Total Assets LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable Total Liabilities Fund Balance Reserved for encumbrances Unreserved: Designated for capital outlay Total liabilities and fund balance -47- September 30, 1993 1992 $435,762 $270,657 $435,762 $270,657 S 274 $ 4,285 274 4,285 156,304 173,830 279,184 92,542 435,488 266,372 $435,762 $270,657 MIAMI SHORES VILLAGE, FLORIDA CAPITAL PROJECTS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30, 1993 i VARIANCE REVISED FAVORABLE BUDGET ACTUAL (UNFAVORABLE) Revenues: Interest $ - S 15,548 $ 15,548 Total revenues - 15,548 15,548 Expenditures: i Current: General government 90,785 18,928 71,857 Public safety 152,589 81,068 71,521 Public service 173,092 21,077 152,015 Culture /recreation 107,185 40,617 66,568 Debt Service: Principal 60,884 60,884 - Interest 27,246 27,246 - Total expenditures 611,781 249,820 361,961 Deficiency of revenues over expenditures (611,781) (234,272) 377,509 Other financing sources: Appropriated fund balance 216,337 - (216,337) Operating transfers in 361,544 369,488 7,944 Financing proceeds 33,900 33,900 --- Total other financing sources 611,781 403,388 (208,393) Excess of revenues over expenditures - 169,116 169,116 Fund balance, beginning of year 266,372 266,372 - Fund balance, end of year S266,372 $435,488 $ 169,116 -48- 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, 1993 1992 ASSETS Equity in pooled cash and investments $635,235 $402,308 Prepaid insurance - 2,314 Total Assets S635,235 $404,622 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable and accrued liabilities $ 2,604 $ 1,951 Estimated insurance claims 329,432 260,210 Total Liabilities 332,036 262,161 Fund equity: Retained earnings - unreserved 303,199 142,461 Total Liabilities and Fund Equity S635,235 $404,622 -49- 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 Non - operating income: Interest income Net income Retained earnings, beginning of year Retained earnings, end of year -50- Fiscal Year Ended September 30, 1993 1992 $491,000 $461,500 200,375 112,979 38.546 351.900 139,100 21,638 160,738 142,461 $303,199 230,013 118,104 8.600 356.717 104,783 20,169 124,952 17,509 $142.461 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. - Irl ID lD lD V1 D7 N t0 O V1 ul m 0 m O m j m a0 l0 s 0) N co � N v a 1� O m O N N ID N 01 O .--I H .T O V7 r-I IO m 0) Vl (D rl CD O (D In .-I H m N 0) m I-I V1 co O N l0 '-I N ID '-1 N N v ID m tD lD q N n m .-1 a) N Q) N O F +3 a) a0 e0 ID O V1 N 0) N O N V1 14 1` O -C N 0) V) O ID O d -C O N O .0 -C -W n V1 WI) ID co N rl O ID O -, O n O n 1D 1% 1% - F} N o m O a0 N V1 C ID O V1 V1 -C N V1 n m O ID M 1l -C V1 V1 m {D ID V1 N N N 00 V1 w rl N N ID m tD n 17 N ID m 0) C O) O Vl N G 0 T� •� 0 0 0 0 0 0 0 0 0 0 N 7 y G I C 00 w w w fa D ao m o N N U o ID V1 N .y l0 ID In V1 r-I ID O S O G G 0) ID rl O ID aD O .0 O a1 I - I - - I - I I •.i V) .ti I7 m N 0) U) 7 In 0 v n m v rl .-I N N v G to G H N m m m m ptV. F W F O) 0) 0) a7 0) < N H O) m IO A v f0 U y ) O O l0 LD m O m D1 Q W H F N ' N N m m O W W Q W Z H E G A . ti W W Q N 3 a1 Ll G 4'1 e Q) O) a H E .H li I I I I I I I N I I I NI F-1 G w F a 4 G W lD ID H u H lD u ILD c�D o 7 1 I I I I I I S I I a S C Z Q '� 7 N N WO C F °a U ¢+ n v v 0) O v m n ro O o m to o V1 lD N o Na I I I O � F v O T s4 y +) EH 0 .77 -4 tr N A >+ PL a) A ro F E H d N a.) W yEi 0 a) W aG z -4 A > E A N a G .T l N N � E y w > W C A 7 m G a�i V) •.H H E PI N A In H A4 O U y W ,q +) at m Q ro A H m y) H +� Ia N H Im r. ro U ro m 43 H 10 H a) N U P4 G W H to 0 '0 O E VV) d a) to a '� G G w 0 v..+.0 G TIn a) I H P v w 10o "1 ..1 .4 H In ro to o ro G ro ro o 00) - E P. d aQ) 0 H ., ro o 0 .. v p° v d IHa o 0 LL W 0 00 d G Ya. F a W LL U F H ro> G .~-I u A F F N b H i •.Gi43 aa)m E� w F+' v D ro dawaaCa .I E a) O '0 '0 H G H d A N 4J 3 y H W 7 m Ia-I 0 4) W 'D PG U W G SDI •.77i ,C N al H U W 7 U a) tT ro G a) 7 U H H Q O 5 I" W U H p p 6 P. a W -51- -52- m o a to m o o n n ao co n t!! O) 0] O N N N to .-+ N tD c0 N ul v n co t7 O) r t0 N m to '4 .1 [7 O ri (D O M J`-, O N lD N N M G o N W t7 4I a) ro N m A y a0 tD f� h N ri n a N O rl v1 1O 4� o ro a ,i m r1 o to c M Ili vi 0) v, n O O n at) n c N 0 m N m v1 v1 a O 07 o) to n Fi ri O tD co 0) a N r rl Ln w1 O .ti w N ri N v9 O b {o N N W U z v v co m m a) m O) N o to m N N [] m N U 7 I tl) I W N O v1 1 .T v oo a) N N r\ I N t\ o M N o t7 4 H N W O z w H W Zi G m m m o o rn to '1 N 'm-1 O m O) N m U Q 3 ro U .� H t7 M t(1 ti v N H o N F N Q Ca 41 + F 0 z z W p w z� N U a Q N 7 ) H N PL4 w Wz O r7 m O) r\• tD r') '4 N v N o N W rui .-I Vl vl to t\ lD N 0 � F N O H z w w H H to C7 G u z T ro ro H d 4 w n d T z U a a) N v N H a � a w ro w 14 v v > ° ° m a > N > eo v O 'o n a 41 .. w LI G ..1 T U VI a) y G W O 'd ° N 7 ro c, U~ O N .Gi ~ N .. O N a .4 a) N G JT) N a C O N N G A y 4-4 O d X ro H v) U .0 O W 7 O O W 4J —4 ro to r4 . „GW N W •..I B O O N ro 44 'O G W U U I a ro� n ,� H U J O F 7 y .' ro O F O a ” G� 44,'4,1 a) W ti b ro ro a) N ^4 G 'o d ro O G .tea G A '6 14 7 ,� H C ro A ro A NF a) v) N A H y„I a' U p, W> a) N N A a' a w E K x° o K o a% a i. x L) w w ,�, o w w w -52- MIAMI SHORES VILLAGE, FLORIDA PENSION TRUST FUNDS BALANCE SHEET LIABILITIES AND FUND BALANCE Totals LIABILITIES: September 30, ASSETS General Police 1993 1992 CASH WITH PENSION TRUSTEE $ 22,788 $ 26,180 $ 48,968 $ 81,286 DUE FROM EMPLOYEES 18,216 20,929 39,145 - INVESTMENTS, AT MARKET 4,305,830 4,946,776 9,252,606 8,401,966 ACCRUED INTEREST RECEIVABLE 38 44 82 Total Assets $4,346,872 $4,993,929 $9,340,801 $8,483,252 LIABILITIES AND FUND BALANCE LIABILITIES: Accounts Payable $ 7,518 $ 8,638 $ 16,156 $ 19,107 Total Liabilities 7,518 8,638 16,156 19,107 FUND BALANCE: Reserved for pensions 4,339,354 4,985,291 9,324,645 8,464,145 Total Liabilities and Fund Balance $4,346,872 $4,993,929 $9,340,801 $8,483,252 -53- MIAMI SHORES VILLAGE, FLORIDA PENSION TRUST FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE i -54- Totals Fiscal Year Ended September 30, General Police 1993 1992 Operating revenues: Contributions: _ Village $ 16,960 $ 155,500 $ 172,460 $ 217,043 State - 24,201 24,201 21,528 Employees 110,571 124,702 235,273 207,219 127,531 304,403 431,934 445,790 Earnings on investments 389,991 434,870 824,861 754,671 Total operating revenues 517,522 739,273 1,256,795 1,200,461 Operating expenses: Administrative and general 39,896 46,730 86,626 112,002 Benefits payments and refunds 171,965 137,704 309,669 244,720 Total operating expenses 211,861 184,434 396,295 356,722' Net income 305,661 554,839 860,500 843,739 Fund balance beginning of year g g 4,033,693 4,430,452 8,464,145 7,620,406 Fund balance, end of year $4,339,354 $4,985,291 $9,324,645 $8,464,145 i -54- MIAMI SHORES VILLAGE, FLORIDA DEFERRED COMPENSATION FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FISCAL YEAR ENDED SEPTEMBER 30, 1993 ASSETS: Deferred compensation investments, at market LIABILITIES: Deferred compensation payable to employees BALANCE BALANCE OCTOBER 1, TRANSFERS/ SEPTEMBER 30, 1992 ADDITIONS DELETIONS 1993 $623,046 $197,375 $165,381 $623,046 $197,375 $165,381 -55- S655,040 S655,040 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 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 -57- September 30, 1993 1992 $ 718,531 $ 718,531 2,081,228 2,050,935 1,477,049 1,370,431 2.566.046 2.614.378 $6,842,854 $6,754,275 $ 57,591 $ 57,591 4,257,910 4,360,962 633,142 477,366 358,192 407,772 19,371 18,820 183,775 98,891 1.332.873 1.332.873 $6,842,854 $6,754,275 MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY SEPTEMBER 30, 1993 -58- IMPROVEMENTS OTHER THAN FUNCTION LAND BUILDINGS BUILDINGS EQUIPMENT TOTAL General government - financial and administrative $ 1,500 $ 230,994 $ 89,589 $ 204,857 $ 526,940 Public safety - police - 266,410 34,274 624,540 925,224 Public services - public works 71,264 234,754 881,604 1,290,354 2,477,976 Culture /recreation: Parks and recreation 62,350 709,336 209,484 135,888 1,117,058 Library 2,500 292,317 335 167,631 462,783 Country Club 580,917 347,417 261,763 142,776 1,332,873 Total general fixed assets allocated to functions $718,531 $2,081,228 $1,477,049 $2,566,046 $6,842,854 -58- MIAMI SHORES VILLAGE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30, 1993 -59- BALANCE BALANCE OCTOBER 1, SEPTEMBER 30, FUNCTION AND ACTIVITY 1992 ADDITIONS DELETIONS 1993 General government: Financial and Administrative $ 505,023 $ 21,917 $ - $ 526,940 Public safety - police 885,311 166,703 126,790 925,224 Public services - public works 2,486,302 95,165 103,491 2,477,976 Culture /recreation: Parks and recreation 1,085,044 52,798 20,784 1,117,058 Library 459,722 3,061 - 462,783 Country Club 1,332,873 - - 1,332,873 Total culture /recreation 2,877,639 55,859 20,784 2,912,714 Total general fixed asset allocated to functions $6,754,275 $339,644 $251,065 $6,842,854 -59- T-ables------ -- MIAMI SHORES VILLAGE, FLORIDA COMMENTS RELATIVE TO STATISTICAL SECTION SEPTEMBER 30, 1993 UNAUDITED 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. -61- MIAMI SHORES VILLAGE, FLORIDA TABLE I GENERAL GOVERNMENTAL EXPENDITURES AND OTHER FINANCING USES BY FUNCTION (1) LAST TEN FISCAL YEARS -62- PUBLIC SERVICES FISCAL GENERAL PUBLIC STREETS CULTURE/ DEBT YEAR GOVERNMENT SAFETY & ADMIN SANITATION RECREATION SERVICE TOTAL 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 1993 829,537 2,931,768 860,157 1,213,188 1,305,045 274,308 7,414,003 (1) General governmental expenditures include all Governmental Fund Types and Expendable Trust Funds of the Village. Source: Miami Shores Village Finance Department. -62- MIAMI SHORES VILLAGE, FLORIDA TABLE II GENERAL REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1) LAST TEN FISCAL YEARS CHARGES LICENSES FISCAL FINES AND AND INTER - YEAR TAXES PERMITS GOVERNMENTAL 1984 $2,634,649 $ 65,363 $687,916 1985 2,892,152 70,739 708,700 1986 3,102,089 80,660 784,705 1987 3,059,448 95,324 757,487 1988 3,043,277 93,102 886,953 1989 3,270,710 106,214 868,871 1990 3,576,577 114,326 897,078 1991 3,605,607 116,836 885,653 1992 3,737,604 133,284 883,719 1993 4,034,053 161,227 968,227 CHARGES FOR FINES AND MISCEL- SERVICES FORFEITURES LANEOUS TOTALS 697,676 $ 52,790 $ 268,363 $4,406,757 849,753 48,140 246,159 4,815,643 1,069,626 51,960 252,031 5,341,071 1,150,649 70,843 227,888 5,361,639 1,140,455 61,395 348,215 5,573,397 1,332,099 122,483 343,510 6,043,887 1,438,148 138,753 273,567 6,449,449 1,553,224 96,444 760,582* 7,018,346 1,826,078 83,401 1,069,366 7,733,452 1,804,167 116,021 988,830 8,072,525 (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. -63- MIAMI SHORES VILLAGE, FLORIDA TABLE III PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS PERCENT OF -64- PERCENT DELINQUENT TOTAL TOTAL TAX FISCAL TOTAL CURRENT TAX OF LEVY TAX TAX COLLECTION YEAR TAX LEVY COLLECTIONS COLLECTED COLLECTIONS COLLECTIONS TO TAX LEVY 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 1993 2,835,734 2,687,841 95 30,991 2,718,832 96 Source: Miami Shores Village Finance Department and Dade County Property Appraiser. -64- 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 (100 %) 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. -65- REAL PROPERTY PROPERTY CENTRALLY TOTAL FISCAL ASSESSED ASSESSED ASSESSED ASSESSED YEAR VALUE VALUE PROPERTY VALUE 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 1993 296,784,956 17,956,913 705,348 315,447,217 (1) The basis of assessed value is approximately one hundred percent (100 %) 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. -65- 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. .. SOUTH FLORIDA DADE WATER COUNTY FISCAL GENERAL MANAGEMENT SCHOOL DADE YEAR FUND DISTRICT DISTRICT COUNTY TOTAL 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 1993 9.120 .547 9.528 11.59 30.785 Source: Dade County Property Appraiser. .. MIAMI SHORES VILLAGE, FLORIDA TABLE VI COMPUTATION OF OVERLAPPING DEBT SERVICE (1) SEPTEMBER 30, 1993 Name of Governmental Unit Net Debt Outstanding Percent Applicable to Miami Shores Village Miami Shores Village Share of Debt (1) Source: Dade County September 30, 1992 financial statement. September 30, 1993 financial statement unavailable. -67- Metropolitan Dade County $939,025,109 .041% $ 385,000 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.) .: (1) (2) (3) (4) FISCAL PER CAPITA MEDIAN UNEMPLOYMENT YEAR INCOME AGE POPULATION RATE 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% 1993 18,252 36 10,125 7.1% 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.) .: MIAMI SHORES VILLAGE, FLORIDA TABLE VIII PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS FISCAL CONSTRUCTION VALUE BANK YEAR COMMERCIAL RESIDENTIAL DEPOSITS (1) 1984 $ 450,000 $ - $10,193,442 1985 1,050,000 420,000 10,508,703 1986 2,548,295 1,127,495 10,092,538 1987 2,285,076 4,465,914 14,659,605 1988 4,404,642 2,049,631 12,897,683 1989 1,496,734 2,194,491 12,258,045 1990 6,142,111 2,627,706 11,387,817 1991 1,395,011 3,027,508 11,877,335 1992 1,303,199 3,116,805 11,020,361 1993 1,439,194 6,317,638 10,425,099 (1) Municipal Bank Deposit Records (2) Estimated actual value. Source: Miami Shores Village and Barnett Bank .• PROPERTY VALUE (2 COMMERCIAL RESIDENTIAL $28,582,464 $250,543,165 28,543,457 250,216,003 28,667,100 252,382,902 28,724,225 252,913,444 29,014,707 255,471,095 29,067,505 255,908,032 32,869,891 256,389,708 36,142,737 282,015,163 51,190,049 268,747,763 56,780,499 258,666,718 MIAMI SHORES VILLAGE, FLORIDA TABLE IX PRINCIPAL TAXPAYERS SEPTEMBER 30, 1993 TAXPAYER PROPERTY OWNED Biscayne Kennel Club Northern Trust Bank of Florida Shores Center Boris Moroz and Phil Glassman 9325 Block of Park Dr. Shores Point Burger King, Winn Dixie, Tony Romas /Kitchen Extras Tropical Chevrolet Inc. Tropical Chevrolet George Bennett /Bennett 9500 Block of N.E. 2nd Electric Avenue Residence Henry Everett 9600 Block of N.E. 2nd Avenue private residence Sheila McDonald 11 Residential Prop. in Miami Shores NCNB National Bank NCNB Konover Properties, Inc. Shores Cinema 9800 Block of N.E. 2nd Avenue and private residence Thomas T. Lin Lihsuen Lin Hacienda Motel 9101 Biscayne Blvd. Source: Miami Shores Village Finance Department -70- 1992 ASSESSED VALUATION $ 8,248,949 2,900,000 PERCENTAGE OF TOTAL ASSESSED VALUATION 2.58% .91% 2,220,172 .69% I 1,588,450 .50% 1,439,772 .45% 1,388,724 .43% 1,108,652 .35% 1,079,258 .34% 854,335 .27% 824.799 .26% $21.653.111 6.78% MIAMI SHORES VILLAGE, FLORIDA TABLE X MISCELLANEOUS STATISTICS SEPTEMBER 30, 1993 Date of Incorporation 1932 Form of Government Council /Manager Area 211 square miles Miles of Streets 40 Number of Street Lights 1,038 Fire Protection: Number of Stations 1 Number of Firemen and Officers (operated by Dade County) 7 Police Protection: Number of Stations 1 Number of Policemen and Officers 33 Education: 1. University: Number of Classrooms 80 Number of Teachers 456 Number of Students 6,850 2. Elementary School: Number of Classrooms 71 Number of Teachers 216 Number of Students 1,732 3. Preschool and Centers: Number of Classrooms 16 Number of Teachers 35 Number of Students 275 Building Permits (new construction) 2 Recreation /Culture: Number of Parks 3 Number of Libraries 1 Number of Volumes 61,500 Number of Employees 155 Source: Miami Shores Village -71- Supplementary Auditor's Reports Section RACHLIN & COHEN 1320 South Dixie Highway GRATIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 700 Southeast Third Avenue Penthouse A PARTNERSHIP OF PROFESSIONAL AssocIATIONS Suite 400 Coral Gables, Florida 33146 -2964 Dade (305) 667 -0412 Ft. Lauderdale, Florida 33316 -1102 Fax (305) 665 -7456 Broward (305) 764 -7717 Fax (305) 764 -7835 Independent Auditor's Report on Internal Control Structure Based on an Audit of General Purpose Financial Statements 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 (the "Village ") , as of and for the year ended September 30, 1993 and have issued our report thereon dated November 18, 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 general purpose financial statements of the Village for the year ended September 30, 1993, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the Village 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 the general purpose 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. -73- Member of Summit Intemadonal 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 e a 'i.M. .a,... _ .. 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. We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition 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. The reportable condition noted is on page 85. 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 policies and procedures used in administering federal assistance 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. However, we believe that the reportable condition described above is not a material weakness. This report is intended for the information of the Mayor and the Village Council, the Auditor General of the State of Florida and grantor agencies 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 Village Council is a matter of public record. /2te-�- V- 4-z� Coral Gables, Florida November 18, 1993 -74- RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTAN'T'S & CONSULTANT'S 1320 South Dixie Highway 700 Southeast Third Avenue Penthouse A PAR rNltesnm of PROFESSIONAL ASSOCIATIONS Suite 400 Coral Gables, Florida 33146 -2964 Dade (305) 667 -0412 Ft. Lauderdale, Florida 33316 -1102 Fax (305) 665 -7456 Broward (305) 764 -7717 Fax (305) 764 -7835 Independent Auditor's Report on Compliance With Laws and Regulations Based on an Audit of General Purpose Financial Statements 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 ( the "Village ") , as of and for the year ended September 30, 1993 and have issued our report thereon dated November 18, 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 the Village is the responsibility of the Village's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Village's compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the 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 the Village had not complied, in all material respects, with those provisions. In connection with our audit of the general purpose financial statements of the Village for the year ended September 30, 1993, 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. -75- Member of Summit International Associates, Inc. with offices in principal cities throughout the world. Member of the American I"StinItC 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 audit, nothing came to our attention that caused us to believe that the Village: 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 Village's general purpose financial statements. e. Had other inaccuracies irregularities shortages and defalcations. Our audit 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 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. This report is intended for the information of Mayor and Village Council, the Auditor General of the State of Florida and grantor agencies 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 Village Council is a matter of public record. ✓emu. G� Coral Gables, Florida November 18, 1993 -76- RACHLIN & COHEN 1320 South Dixie Highway CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 700 Southeast Third Avenue Penthouse A PARTNERSHIP of PROFESSIONAL ASSOCIATIONS Suite 400 Coral Gables, Florida 33146 -2964 Dade (305) 667 -0412 Ft. Lauderdale, Florida 33316 -1102 Fax (305) 665 -7456 Broward (305) 764 -7717 Fax (305) 764 -7835 Independent Auditor's Report on Supplementary Schedule of Federal Financial Assistance Honorable Mayor and Village Council Miami Shores Village, Florida We have audited the general purpose financial statements of the Miami Shores Village, Florida (the "Village ") , and the combining and individual fund and account groups financial statements of the Village as of and for the year ended September 30, 1993, and have issued our report thereon dated November 18, 1993. These general purpose financial statements are the responsibility of the Village'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, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget ( "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 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 the Village 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. Coral Gables, Florida November 18, 1993 -77- 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 Privatc Companies Practice Section Mcmhcr 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, 1993 Federal Grantor/ Pass - Through Grantor /Program Title Federal Emergency Management Agency Disaster Assistance Program Passed Through State of Florida Department of Community Affairs. Federal Pass - Through CFDA Grantor's Disbursement/ Number Number Expenditures 83.516 93E0- lR- 11 -23 -02 -013 $444,454 Total Federal Assistance Expended $444,454 -78- RACHLIN & COHEN 1320 South Dixie Highway CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 700 Southeast Third Avenue Penthouse A PARTNERSHIP OF PROFESSroNM, AssocIATIONS Suite 400 Coral Gables, Florida 33146 -2964 Dade (305) 667 -0412 Ft. Lauderdale, Florida 33316 -1102 Fax (305) 665 -7456 Broward (305) 764 -7717 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 general purpose financial statements of Miami Shores Village, Florida (the "Village ") , as of and for the year ended September 30, 1993, and have issued our report thereon dated November 18, 1993. We have also audited the Village's compliance with requirements applicable to major federal financial assistance programs and have issued our report thereon dated November 18, 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 require that we plan and perform the audit to obtain reasonable assurance about whether the Village 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, 1993, 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 to report on the internal control structure in accordance with OMB Circular A -128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated November 18, 1993. The management of the Village 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, 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. -79- 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 i x } 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 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, 1993, the Village expended 44 percent of its total federal financial assistance under major federal financial assistance programs. 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 the Village's major federal financial assistance program, which is identified in the Schedule of Federal Financial Assistance on page 78. Our procedures were less in scope than would be necessary to render an 4 Honorable Mayor and Village Council Miami Shores Village, Florida Page Three opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted a certain matter involving the internal control structure and its operation that we consider to be reportable condition 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 judgement, could adversely affect the Village's ability to administer federal financial assistance programs in accordance with applicable laws and regulations. The reportable condition noted is on page 85. 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 structure policies and procedures used in administering federal financial assistance 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. However, we believe that the reportable condition described above is not a material weakness. This report is intended for the information of the Mayor and the Village Council, the Auditor General of the State of Florida and grantor agencies 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 Village Council is a matter of public record. �14L�l v 'lal-1, Coral Gables, Florida November 18, 1993 -81- RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSUL'T'ANTS 1320 South Dixie Highway CERTIFIED Southeast Third Avenue Penthouse A PARTNERSHIP of PROFESSMNAL ASSOCIATIONS Suite 400 Coral Gables, Florida 33146 -2964 Dade (305) 667 -0412 Ft. Lauderdale, Florida 33316 -1102 Fax (305) 665 -7456 Broward (305) 764 -7717 Fax (305) 764 -7835 Independent Auditor's Single Report on Compliance with the General Requirements_ Applicable to 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 ( the "Village ") , as of and for the year ended September 30, 1993, and have issued our report thereon dated November 18, 1993. We have applied procedures to test the Village's compliance with the following requirements applicable to its federal financial assistance programs, which is identified in the Schedule of Federal Financial Assistance on page 78, for the year ended September 30, 1993. The general requirements tested included political activity; Civil Rights; Cash Management; allowable costs /cost principles and a drug -free workplace. 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 an audit, the objective of which is the expression of an opinion on the Village'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 the Village had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed an immaterial instance of noncompliance with those requirements, which are described in the Schedule of Findings and Questioned Costs at page 85. This report is intended for the information of the Mayor and the Village Council, the Auditor General of the State of Florida and grantor agencies and should not be used for any other purpose. However, this restrictions is not intended to limit the distribution of this report, which, upon acceptance by the Village Council is a matter of public record. Coral Gables, Florida November 18, 1993 -82- 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 SAC Practice Section and the Private Companies Practice Section Member of the Florida Institute of Certified Public Accountants RACHLIN & COHEN 1320 South Dixie Highway CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 700 Southeast Third Avenue Penthouse A PARTNERSHIP OF PROFESSIONAL, AssoctATtONS Suite 400 Coral Gables, Florida 33146 -2964 Dade (305) 667 -0412 Ft. Lauderdale, Florida 33316 -1102 Fax (305) 665 -7456 Broward (305) 764 -7717 Fax (305) 764 -7835 Independent Auditor's Report on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance Prozrams Honorable Mayor and Village Council Miami Shores Village, Florida We have audited the general purpose financial statements of Miami Shores Village, Florida (the "Village "), as of and for the year ended September 30, 1993 and have issued our report thereon dated November 18, 1993. We have also audited the Village's compliance with the requirements of governing specific requirements of testing whether expenditures are allowed or not allowed; eligibility; and reporting which is identified in the Schedule of Federal Financial Assistance on page 78, for the year ended September 30, 1993. The management of the Village 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. The results of our audit procedures disclosed immaterial instances of noncompliance with the requirements referred to above, which are described in the accompanying Schedule of Findings and Questioned Costs. We considered these instances of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph. In our opinion, the Village, complied, in all material respects, with the requirements governing types of services allowed or unallowed; eligibility; matching, level of effort, or earmarking; reporting; special tests and provisions; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs for the year ended September 30, 1993. -83- 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 This report is intended for the information of the Mayor and the Village Council, the Auditor General of the State of Florida and grantor agencies 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 Village Council is a matter of public record. � a Coral Gables, Florida November 18, 1993 -84- Schedule of Findings and Questioned Costs CONDITION During our audit we noted that two(2) employees included in the Federal Emergency Management Agency (FEMA) Disaster Assistant Program charged rates that were less than the rates included in the employees personnel records resulting in a questionable cost of $47.99. REASON IMPROVEMENT NEEDED Improvement is needed to ensure that Federal programs are charged the proper amount of expenditure and that the City receive the correct amount due them. CAUSE OF CONDITION No reconciliation of daily log sheet to payroll records. EFFECT OF CONDITION Improper amount of expenditures charged to a federal program resulting in the City receiving less than amount due them. RECOMMENDATION The City should correct the error and submit a revised damage survey report (DSR) to the Federal Emergency Management Agency with supporting documentation. Additionally, the City should reconcile the daily log sheet to the current payroll records. COSTS AND BENEFITS OF RECOMMENDED ACTION The City's control over federal programs would be improved and the City would receive the correct amount of monies owed them. MANAGEMENT'S RESPONSE The error was made by failing to increase employee pay rate due to merit increase. Finance Department will assure all merit increases be calculated when the Department receives the Payroll Change of Status Form. Finance Department will review all merit increases from August 24, 1992 to December 31, 1992 and make all necessary corrections and file amendments to Federal Emergency Management Agency. -85-