1998MIAMI SHORES VILLAGE, FLORIDA
GENERAL PURPOSE FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
Prepared by
THE FINANCE DEPARTMENT
MIAINII SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
INTRODUCTORY SECTION
PAGE
Village Officials viii
FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
GENERAL PURPOSE FL\TANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
Combined Balance Sheet - All Fund Types and Account Groups
3
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
All Governmental Fund Types and Expendable Trust Funds
5
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - All Budgeted Governmental Fund Types
6
Combined Statement of Revenues, Expenses and Changes in Retained Earnings -
All Proprietary Fund Types
7
Combined Statement of Cash Flows - All Proprietary Fund Types
8
Combined Statement of Changes in Plan Net Assets - Pension Trust Fund
9
Notes to General Purpose Financial Statements
10 -25
Required Supplementary Information
26
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
Governmental Fund Types
General Fund:
Comparative Balance Sheets 28
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance 29
Schedule of Revenues and Expenditures - Budget and Actual 30
Capital Projects:
Comparative Balance Sheets 34
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance 35
Proprietary Fund Types
Enterprise:
Comparative Balance Sheets 36
Comparative Stateme ::s of Revenues, Expenses and Changes in Retained Earnings 37
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES, Continued
Proprietary Fund Types, Continued
Internal Service:
Comparative Balance Sheets
38
Comparative Statements of Revenues, Expenses and Changes in Retained Earnings
39
Fiduciary Fund Types
Trust and Agency Funds:
Combining Balance Sheets - Trust and Agency Funds
40
Combining Statements of Revenues, Expenditures and Changes in Fund Balances -
Expendable Trust Funds
41
Combining Statements of Plan Net Assets - Pension Trust Fund
42
Combining Statements of Changes in Plan Net Assets - Pension Trust Fund
43
General Fixed Assets Account Group
Schedules of General Fixed Assets - By Source
44
Schedule of General Fixed Assets - By Function and Activity
45
Schedule of Changes in General Fixed Assets - By Function and Activity
46
COMPLIANCE SECTION
Report of Independent Certified Public Accountants on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of General Purpose Financial Statements
Performed in Accordance with Government Auditing Standards
47
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida
48
Schedule of Findings
;0
INTRODUCTORY SECTION
MIAMI SHORES VILLAGE, FLORIDA
GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
VILLAGE OFFICIALS
MAYOR
Mary Ross Agosta
VILLAGE COUNCIL
Michael H. Boyle - Vice Mayor
Louis S. Imburgia
Cesar Sastre
Stephen K. Loffredo
VILLAGE MANAGER
Tom Benton
VILLAGE AUDITORS
Rachlin Cohen & Holtz
Certified Public Accountants
FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
CERTIFIED PUBLic AccOUNTa \TS & CC, :_ �T. �S
Partnership Including Proie --onal
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Management
Miami Shores Village, Florida
We have audited the accompanying general purpose financial statements of Miami Shores Village,
Florida (the Village) as of September 30, 1998 and for the year then ended, as listed in the table of
contents. These financial statements are the responsibility of the Village's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally
accepted auditing standards and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates Trade by management, as well as evaluating the overall
financial statement presentation. We believe -ffiat our audit provides a reasonable basis for our opinion.
Governmental Accounting Standards Board Technical Bulletin 98 -1, Disclosures about Year 2000
Issues, requires disclosure of certain matters regarding the year 2000 issue. The Village has included
such disclosures in Note 2. Because of the unprecedented nature of the year 2000 issue, its effects and
the success of related remediation efforts will not be fully determinable until the year 2000 and
thereafter. Accordingly, insufficient audit evidence exists to support the Village's disclosures with
respect to the year 2000 issue made in Note 2. Further, we do not provide assurance that the Village is or
will be year 2000 ready, that the Village's year 2000 remediation efforts will be successful in whole or in
part, or that parties with which the Village does business will be year 2000 ready.
In our opinion, except for the effects of such adjustments, as might have been determined to be necessary
had we been able to examine evidence regarding year 2000 disclosures, the financial statements referred
above present fairly, in all material respects. the financial position of the Village, as of September 30,
1998, and the results of its operations and iu cash flows for the year then ended in conformity with
generally accepted accounting principles.
In accordance with Government Auditing Standards, -se have also issued a report dated November 16,
1998 on our consideration of Miami Shores Village, Florida's internal control over financial reporting
and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
One Southeast Third A�-enue ;girth F , r ''e 33131 Dade (305) 377-- - Fax (305),77-83131
00 Southeast Third Avenue, Third oor, Ft.i ��_erda._. t L�.. a 33316 • Broivard (954) := -1040 - Fax (954) 525 -2004
Wmiw of the Anxrc.., !.ahta;e o -z- - - �'
' !emcer 'r - :e . - olic A . i niaris
Honorable Mayor, Village Council and Village Management
Miami Shores Village, Florida
Page Two
Our audit was conducted for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining, individual fund and account group statements and
schedules as listed in the table of contents are presented for purposes of additional analysis and are not a
required part of the general purpose financial statements of the Village. Such information has been
subjected to the auditing procedures applied in the audit of the general purpose financial statements and,
in our opinion, except for the effects of such adjustments, if any, as might have been determined to be
necessary had we been able to examine evidence regarding year 2000 disclosures, is fairly presented in
all material respects in relation to the general purpose financial statements taken as a whole.
/02'r�- �IPxc".t d-- Lc P
Miami, Florida
November 16, 1998
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
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MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND C= --vGES IN F---ND BALANCES -
ALL GOVERNMENTAL FUND TYPES AND EXPENDAE E TRL ST FL iDS
FISCAL YEAR ENDED SEPTEMBER 30, '_ cl 98
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTE -vMER 30, 1997)
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Contributions
Miscellaneous revenue
Interest
Confiscated property
Total revenues
Expenditures:
Current:
General government
Public safety
Public services
Culture /recreation
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues
over expenditures and other
financing sources (uses)
Fund balances, beginning
Fund balances, ending
Governmental
Fiduciary
Totals
Fund Types
Fund Types
(Memorandum Only)
Capital
Expendable
3,024,268
3,467,206
General Projects
Trust
1998
1997
$ 4,525,306 $ -
S -
S 4,525,306
$ 4,285,860
211,459 -
-
211,459
196,806
1,203,077 -
-
1,203,077
1,351,246
2,304,259 -
-
2,304,259
2,074,061
205,237 -
25,193
230,430
210,329
- -
6,811
6,811
7,707
225,576 -
700
226,276
242,664
145,072 44,579
9,645
199,296
196,086
262.676
262.676
75,066
8.819,986 44.579
305,025
9,169.590
8,639,825
991,327
-
-
991,327
979,562
3,008,694
1,220
14,354
3,024,268
3,467,206
2,169,676
134,512
-
2,304,188
2,114,254
1,516,542
69,704
17,809
11604,055
1,558,917
353,381
-
-
353,381
505,430
31,374
192,842
-
224,216
215,488
3,500
52,745
-
56,245
59.865
8,074,494
451,023
32.163
8,557,680
8,900,722
745,492 406,444 272,862 611,910 (260.897)
20,000 374,656 - 394,656 -
(374,656) (20.000) (394,656)
(354,656) 374,656 (20.000) -
390,836 (31,788) 252,862 611,910 (260,897)
1.922,754 717,996 158.520 2.799.270 3,060,167
$ 2,313,590 S 686,208 S 411.382 S 3,411,180 $ 2,799,270
See notes to general purpose financial sstements.
MIAA4I SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -
ALL BUDGETED GOVERNMENTAL FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 1998
See notes to general purpose financial statements.
-6-
General Fund
Capital Projects Fund
Budgetary
Variance
Budgetary
Variance
Basis
Favorable
Basis
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Revenues:
Taxes
$ 4,409,504
$ 4,525,306
$ 115,802
Licenses and permits
202,000
211,459
9,459
Intergovernmental revenues
1,198,156
1,203,077
4,921
101,000
-
(101,000)
Charges for services
2,059,015
2,304,259
245,244
-
Fines and forfeitures
205,000
205,237
237
Miscellaneous revenue
192,859
225,576
32,717
-
-
-
y
Interest
133.000
145.072
12.072
35.000
44.579
9.579
Total revenues
8.399.534
8.819.986
420.452
136.000
44.579
(91,421)
Expenditures:
Current:
General government
1,034,601
1,003,637
30,964
-
_
-
Public safety
3,207,042
3,024,810
182,232
4,011
1,220
2,791
Public services
2,545,950
2,350,017
195,933
261,117
134,512
126,605
MIP
Culture /recreation
1,766,218
1,667,392
98,826
264,064
69,704
194,360
Debt service:
Principal
42,144
31,374
10,770
195,053
192,842
2,211.
Interest
5.217
3.501
1-716
61.037
52.745
8.292
Total expenditures
8.601,172
8.080.731
520.441
785.282
451.023
334.259'
Excess (deficiency) of revenues
over expenditures
(201.638)
739.255
940.893
(649.282)
406.444
242.838
Other financing sources (uses):
Appropriated fund balance
201,638
-
(201,638)
274,626
31,788
(242,838)
Operating transfers in
-
20,000
20,000
374,656
374,656
-
Operating transfers out
(374.656)
_ (374,656)
Total other financing
sources
201.638
(354.656)
(556,294)
649-282
406,444
(242,838)
Excess (deficiency) of revenues
over expenditures and other
financing sources
$
$ 384,599
$ 384,599
$ -
$ _
$ _
j
See notes to general purpose financial statements.
-6-
MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEivIE'N71' OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -
ALL PROPRIETARY FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30.1997)
Operating revenues:
Charges for services
Operating expenses:
Insurance expenses
Personnel expenses
Administrative and general
Total operating expenses
Operating income (loss)
Non - operating revenues:
Interest income
Total non - operating revenues
Net income
Retained earnings, beginning
Internal
Enterprise Service
Self
Stormwater Insurance
Totals
(Memorandum Only)
1998 1997
$ 117.843 $ 456.000 S 573.843 $ 609.280
- 499;145 499,145
536,358
28,816 - 28,816
28,818
20.921 - 20.921
75.190
49.737 499.145 548.882
640.366
68.106 (43.145) 24.961 31.086
5.341 43.145 48.486 55.848
5.341 43.145 48.486 55.848
73,447 - 73,447 24,762
283.495 30.000 313.495 288.733
Retained earnings, ending $ 356,942 $ 30,000 S 386,942 $ 313,495
See notes to general purpose financial statements.
-7-
MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATP, -E TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Changes in operating assets and liabilities:
Increase (decrease) in miscellaneous receivables
Increase in accounts payable and
accrued liabilities
Increase (decrease) in estimated claims insurance
Increase in deferred revenue
Total adjustments
Net cash provided by (used in) operating activities
Cash flows from capital and related financing activities:
Capital improvements
Cash flows from investing activities:
Interest received
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
Internal Totals
Enterprise Service (Memorandum Only)
Self
Stormwater Insurance 1998 1997
$ 68.106 S (43,145) $ 24,961 $ 31,086)
(858)
(5,942)
(6,800)
2,182
88
5,497
5,585
21,468
-
(14, 669)
(14, 669)
12,203
-
52.955
52,955
14,669
(770)
37,841
37,071
50,522
67,336
(5304)
62,032
19,436
(307.322) - (307,322) -
5.341
43,145
48,486
55,848
(234,645)
37,841
(196,804)
75,284
255.800
684.225
940,025
864,741
$ 21,155 S
722,066
$ 743,221
S 940,025
See notes to general purpose financial statements.
-8-
MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF CHANGES TEN PL --kN1 `-ET ASSETS
PENSION TRUST FLT,,-D
r
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 19 97)
1998 1997
Additions
Contributions:
Employer $ 224,565 $ 223,938
State 30,193 28;806
Employees 237.793 225.044
Total contributions 492.551 477.788
Investment income:
Investment earnings 1,244,809 2,775,144
Less investment expenses (100.551) (100.334)
Net investment income 1.144.258 2.674,810
Other income 15.882 505
Total additions 1.652.691 3.153.103
Deductions
Benefit payments and refunds 571,105 549,256
Administrative and general 26.381 119.453
Total deductions 597.486 668.709
Net increase 1,055,205 2;484;394
Net assets held in trust for pension benefits:
Beginning of year 14.702.956 12.218.562
End of year $ 15,758,161 $ 14,702.956
See notes to general purpose financial statemems.
-9-
NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Reporting Entity
Miami Shores Village (the Village) is a political subdivision of the State of Florida. The
Village, which was incorporated in 1932, is located in Miami -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 an 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.
In accordance with generally accepted accounting principles, these financial statements
present the Village and any organization for which the Village is considered to be financially
accountable. Financial accountability includes (1) the appointment of a voting majority of the
organization's governing body, (2) the ability of the primary government to impose its «-ill on
the organization, or (3) if there is a financial benefit/burden relationship. In addition, an
organization which is fiscally dependent on the primary government should be included in its
reporting entity.
The Village does not have any component units that meet the definition described above.
2. Basis of Presentation
The accompanying general purpose financial statements present the financial position, results
of operations and cash flows of the applicable fund types and account groups of the Village in
accordance with generally accepted accounting principles (GAAP) as prescribed by the
Governmental Accounting Standards Board (GASB).
The accounts of the Village are organized and operated on the basis of funds, 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. An
account group, on the other hand, is a financial reporting device designed to provide
accountability for certain assets and liabilities that are not recorded in the funds because they
do not directly affect net expendable available financial resources. 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 following funds
and account groups are used by the Village:
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.
-10-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The capital projects fund is used to account for financial resources to be used for the
acquisition of equipment and construction of capital facilities.
Proprietary Fund Types
The enterprise fund is used to account for operations that are financed and operated in a
manner similar to private business enterprises where the intent of the governing body is
for user charges to cover the costs of providing the service. The Village has one enterprise
fund, the Stormwater Utility Fund.
The internal service fund is used to account for the financing of goods or services
provided by one department to other departments of the Village, on a cost reimbursement
basis. The self insurance fund is the only internal service fund used by the Village.
Fiduciary Fund Types
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.
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 and other long -term obligations not accounted for in proprietary
fund types. Accordingly, the Village maintains a general fixed assets account group and a
general long -term debt account group.
3. Measurement Focus
Governmental Fund Types
The general fund and capital projects fund are accounted for on a current financial
resources measurement focus rather than upon net income determination. This means
that only current assets and current liabilities are generally included on the balance
sheet with fund balance representing available spendable resources.
Proprietary Fund Types
The Village's enterprise fund and internal service fund are accounted for on a flow of
economic resources measurement focus. Accordingly, all assets and liabilities are
included on the balance sheet, and the determination of net income is necessary for
sound financial administration.
-11-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fiduciary Fund Types
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 the
proprietary fund types.
Account Groups
The general fixed assets account group and general long -term debt account group are
concerned only with the measurement of financial position. They are not involved
with the measurement of results of operations. Long -term indebtedness of the
governmental fund types is accounted for in the general long -term debt account group.
General fixed assets of the governmental fund types 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. The basis of accounting relates to the
timing of measurements made, regardless of the measurement focus applied.
Governmental fund types are accounted for using the modified accrual basis of accounting.
Under the modified accrual basis, revenues are recognized when they are susceptible to
accrual, that is when they become both measurable and available as expendable financial
resources. Measurable means that the amount of the transaction can be determined and
available means collectible within the current period or soon enough thereafter to be used to
pay liabilities of the current period, which, for the Village's purpose, is considered to be 60
days. Revenues, such as taxes, intergovernmental revenues, charges for services, rents and
interest, are treated as susceptible to accrual under the modified accrual basis. Expenditures
are generally recognized when the related fund liability is incurred. Prepaid costs are
recorded in the governmental fund types and are recorded as expenditures when used.
The proprietary fund types 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 in the period incurred.
For proprietary funds, the Village has elected to follow all GASB pronouncements and all
FASB pronouncements issued on or before November 30, 1989 except for those that are
contradicted by a GASB pronouncement.
The Village's fiduciary fund types are accounted for on the modified accrual basis.
-12-
WkMl SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUIN-TING POLICIES (Continued)
5. Deposits and Investments
The Village maintains a pooled cash account for all funds except the pension trust fund. This
enables the Village to invest large amounts of idle cash for short periods of time and to
optimize earnings potential. Cash and cash equivalents represents the amount owned by each
fund of the Village. Cash and investments held in the Village's pension trust fund are
managed by trustees. Such amounts are reported separately on the Combined Balance Sheet -
All Fund Types and Account Groups.
Cash and cash equivalents which are cash and short-term investments with maturities of three
months or less, includes cash on hand, demand deposits and investments with the State Board
of Administration Investment Pool.
The investment in the Investment Pool is recorded at cost which is fair value. The
investments in the pension trust fund are reported at fair value.
6. Inventories
Inventories are valued at cost determined on a first -in, first -out basis. Inventories in the
general fund consist of expendable supplies held for consumption. Inventory, except for
gasoline, is expensed when purchased (purchase method). Inventory for gasoline is expensed
when used (consumption method). Inventories are recorded on the balance sheet with a
related reservation of fund balance.
7. Fixed Assets
Fixed assets used in 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. Certain public domain (infrastructure) general fixed assets, consisting of roads, curbs
and gutters, and lighting systems are included in general fixed assets. Donated fixed assets
are recorded in the general fixed assets account group at their fair market value at the date
donated. Depreciation is not required and has not been provided on general fixed assets.
8. Compensated Absences
Village employees are granted vacation and sick leave in varying amounts based on length of
service and the department which the employee serves.
The Village's sick leave policy is to permit employees to accumulate earned but unused sick
pay benefits. Sick leave is accrued and reported as a fund liability when it is probable that the
Village will compensate the employee in the following fiscal year through cash benefits
conditioned on the employee's termination or resignation. The remaining accumulated sick
leave balance is accounted for in the general long -term debt account group.
-13-
MIAMI SHORES VILLAGE, FLORIDA
VOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
8. Compensated Absences (Continued)
The Village's vacation policy is that earned vacation must be taken within one year of the
employee's anniversary date as there is no carryover from one period to another. Unused
vacation pay, if any, is paid with the employee's termination or retirement. Those amounts
estimated to be liquidated with expendable available financial resources are reported as an
expenditure and a fund liability of the appropriate fund.
9. Long -Term Obligations
The Village reports long -term debt of governmental funds at face value in the general long-
term debt account group. Certain other governmental fund obligations not expected to be
financed with current available financial resources are also reported in the general long -term
debt account group.
10. Deferred Revenues
Revenues collected in advance are deferred and recognized as income in the period earned.
In the general fund, deferred revenues consist primarily of occupational licenses and refuse
collection fees received in advance that have been budgeted to pay expenditures of the
subsequent fiscal year.
11. 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 unperformed 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 of the current period.
12. Reserves and Designations
Reservations of fund balance /retained earnings represent amounts that are not available for
appropriation or are legally segregated for a specific future use. The description of each
reserve indicates the purpose for which each was intended.
Designations of fund balance indicates that a portion of fund balance has been segregated
based on tentative plans of the Village. Such plans or intent are subject to change.
Unreserved undesignated fund balance is the portion of fund equity available for any lawful
use.
we
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
13. Property Taxes
Property taxes are assessed as of January 1 each year and are first billed (levied) 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 assessments 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 of assessed taxable valuation). The millage rate assessed by the Village for the year
ended September 30, 1998 was 8.740.
The tax levy of the Village is established by the Village Council prior to October 1 each year,
and the County Property Appraiser incorporates the millage into the total tax levy, ,; hich
includes Miami -Dade County, Dade County School Board and special taxing districts.
All property is reassessed according to its fair market value as of January 1 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 each year or
as soon as practicable thereafter as the assessment roll is certified by the County Property
Appraiser. Miami -Dade County mails to each property owner on the assessment roll a notice
of the taxes due and Miami -Dade County also collects the taxes for the Village. Taxes may be
,
paid upon receipt of such notice from Miami -Dade County, with discounts at the rate of tour
percent (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 in
paid
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 Miami -Dade County are provided for in the laws of Florida.
L
14. Budgets and Budgetary Accounting
Annual appropriated budgets are adopted for the general fund and the capital projects 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.
-15-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
14. Budgets and Budgetary Accounting (Continued)
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. However, there were no
supplemental appropriations in fiscal year 1998.
e) Formal budgetary integration is employed as a management control device during the
year for the general fund and capital projects fund.
f) Budgets for the general fund and capital projects fund are adopted on a basis
consistent with generally accepted accounting principles (GAAP) except for
compensated absences.
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) Unencumbered appropriations lapse at fiscal year end. Unencumbered amounts are
reappropriated in the following year's budget.
i) Budgeted amounts are as originally adopted or as amended. Individual type
amendments were not material in relation to the original appropriations.
15. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Although these estimates are
based on management's knowledge of current events and actions it may undertake in the
future, they may ultimately differ from actual results.
16. Comparative Data
Comparative total data for the prior year has been presented in selected sections of the
financial statements to provide an understanding of changes in the Village's financial position
and operations.
-16-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
17. Memorandum Only - Total Columns
Total columns on the combined statements which are captioned "Memorandum Only"
aggregate the columnar amounts presented by fund type and accotmt 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 nor is such data comparable to a consolidation. Interund eliminations have not
been made in the aggregation of this data.
NOTE 2. YEAR 2000 ISSUE
Until recently, many computer programs were written with a "short cut" Nvhich ignored or
eliminated the first two digits from a year. As a result, the date January 1. 2000 would be
processed as 01/01/00, and uncorrected programs will not be able to distinguish between the
years 1900 and 2000. The inability of computer systems and microchip dependent equipment to
function properly because of the programming "short cut" has been dubbed the year 2000 issue.
Without remedial action, many organizations will experience a disruption in sen-ices.
The Village expects to resolve all critical year 2000 programs by the end of the upcoming fiscal
year. Additionally, the Village does not expect year 2000 problems to have a material adverse
effect on its financial health or its ability to meet its financial obligations. In terms of year 2000
compliant systems, the Village has completed the awareness stage and is currently in the
assessment stage. It appears that this generally affects all system components. The Village expects
the assessment to be completed and the remediation stage to begin by !March 31, 1999. Once the
remediation stage is complete, the Village will commence with the validation/testing stage.:
NOTE 3. DEPOSITS AND INVESTMENTS
n
In addition to insurance provided by the Federal Depository Insurance Corporation (FDIC), all
deposits are held in banking institutions approved by the State Treasurer of the State of Florida
to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits
Act, the State Treasurer requires all Florida qualified public depositories to deposit with the r
Treasurer or another banking institution eligible collateral equal to 50% to 125 °o of the average
daily balance for each month of all public deposits in excess of any applicable deposit insurance
held. The percentage of eligible collateral (generally in the form of U.S. Government and
agency securities, state or local government debt, or corporate bonds) to public deposits is
dependent upon the depository's financial history and its compliance with Chapter 280. In the
event of a failure of a qualified public depository, the remaining public depositories would be
responsible for covering any resulting losses. Accordingly, all amounts reported as deposits are
deemed as entirely insured or collateralized with securities held by the entity or by its agent in
the entity's name.
-17-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 3. DEPOSITS AND INVESTMENTS (Continued)
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.
At year end, the carrying value of investment balances not subject to risk categorization were as
follows:
Investments not subject to risk categorization:
State Board Investment Pool
$ 3,831,229
Common Stock Trust Fund Pool
9,167,121
Bond Trust Fund Pool
6,589,200
Total investments
$19,587,550
A reconciliation of cash and cash equivalents and investments as shown on the combined
balance follows:
Cash and cash equivalents $ 4,258,016
Cash with pension trustee 27,008
Investments 15,756,321
$20,041,345
Carrying amount of deposits $ 453,795
Carrying amount of investments 19,587.550
$20.041.345
NOTE 4. FIXED ASSETS
Changes in general fixed assets during the year are as follows:
Depreciation is not required and has not been provided on general fixed assets.
-18-
Balance
Balance
September 30,
September 30,
1997
Additions
Deletions 1998
Land
S 718,531
$ -
S - $ 718,531
Buildings
3,621,636
64,179
- 3,685,815
Improvements other than buildings
2,435,906
177,822
- 2,613,728
Equipment
3.796,036
274,372
105,718 3.964,690
Total
S10.572.10
$516,373
S105.718 $10.982.764
Depreciation is not required and has not been provided on general fixed assets.
-18-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 5. LONG -TERM DEBT
Changes in general long -term debt during the year are as follows:
Balance Balanc--
September 30, September 30.
1997 Additions Reductions 1998
Bonds payable $ 72,387
Revenue note payable 7203000
Capital lease obligations 98,413
Accrued workers compensation 279,124
Accrued vacation and sick leave 375,151
Other 5,000
Total $1,550,075
$ - $ 72,387 $ -
80,000 640,000
71,829 26.::84
- 22,914 256.2I0
155,563 146,110 384.604
- 5.000
$155,563 $393.240 51,312. 398
During the fiscal year ended 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 electric service utility
tax revenues to secure payment of the principal and interest on the bonds. The final installment
of $72,387 was made on October 1, 1997.
During the fiscal year ended September 30, 1996, the Village received proceeds of $800,OC!0 in
connection with a Revenue Note from a bank. The note is unsecured and bears interest at 4.99%
annually. Proceeds from the note are to be used for the purchase and renovation of a new police
building. The note will be repaid with revenues from the police forfeitures trust fund anc the
general fund. Payments of accrued interest, together with payments of principal in the amo =t of
$20,000 each are to be made quarterly commencing on October 1, 1996 through July 1, 2006.
During the fiscal year ended September 30, 1996, the Village entered into a capital lease it the
form of an installment note of $42,000. Proceeds from the note were used to purchase vehicles.
This note is unsecured and bears interest at 5,59% annually. Payments of accrued interest
together with payments of principal are to be made quarterly commencing on October 25, :996
through July 25, 2001. The aforementioned note is accounted for in the general long -term uebt
account group and will be repaid with revenues from the general fund.
The annual debt service requirements to maturity for all long -term debt are as follows:
u
Principal
Interest
Totz1
Fiscal year ending September 30:
1999
$ 88,374
$ 31,752
$120,126
2000
88,852
27,282
116,13-1
2001
89,358
22,784
112,1 =2
2002
80,000
18,463
98, =63
2003
80,000
14,471
94,44-1
Thereafter
240,000
19,461
259. =51
$666,584
$134,213
$800. -27 -
-19-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. DEFERRED COMPENSATION PLAN
The Village has elected to comply with Government Accounting Standards Board (GASB) 32
"Accounting and Financial Reporting for IRC Sec. 457 Deferred Compensation Plans" earlier
than the effective date issued by GASB (periods beginning after December 31, 1998). The
GASB states that if a government complies in an earlier period, GASB 32 must be applied in the
financial reporting period in which compliance occurs. The Village has amended the 457 plan
document and set up the administration of the plan under a trust agreement. As such, the Village
no longer has access to the assets of the plan. Additionally, the plan assets are separate and
cannot be attached as a result of actions taken by the Village.
NOTE 7. COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS
1. Legal Matters
The Environmental Protection Agency has filed an action against several entities including
the Village regarding oil sent to a Broward site which became contaminated over time. The
Village, along with other responsible parties, has joined in the clean -up process. In addition,
the Village initiated a lawsuit against its insurance carrier to obtain reimbursement for
defense costs and to obtain indemnity. Recently, the Village and the insurance carrier
reached a conditional settlement for full and final settlement of all indemnity claims
including future liability at the petroleum products site, as well as attorney's fees. As such, in
the opinion of legal counsel and management, the liability which may arise from this action
would not result in losses which would materially affect the financial position or results of
operations of the Village.
The Village has several other claims arising in the ordinary course of operations pending
against the Village. In the opinion of legal counsel and management of 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 the Village.
2. Workers' Compensation
The Village has a commitment to Miami -Dade County for a prior workers compensation
claim for $298,007 as of September 30, 1998. The current portion of this claim is $41,797,
which is recorded in the general fund. The long -term portion of $256,210 is accounted for in
the general long -term debt account group. Annual payments are made by the Village to
Miami -Dade County Risk Management on a reimbursable basis.
3. Employment Contract
Effective October 7, 1998, the Village entered into a year -to -year employment contract with
its Village Manager that provides for an annual salary, adjusted for cost -of- living increases,
and certain benefits. The Village maintains the right at any time, for any reason. to replace
the employee with another Village Manager and rehire the employee to his prior position
within the Village.
-20-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7. COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS (Continued)
4. Contingent Liabilities
Amounts received or receivable from grant agencies are subject to audit and adjustment by
grantor agencies. While no matters of non - compliance were disclosed by the audit, grantor
agencies may subject grant programs to additional compliance tests which may result in
disallowed costs. In the opinion of management, future disallowances of current grant
expenditures, if any, would not have a material effect on the Village's financial condition.
5. New Revenue Bond
On October 6, 1998, the Village authorized the issuance of Revenue Bond, Series 1998 in the
amount of $234,321 for the purpose of purchasing a police radio system and other equipment.
NOTE 8. POST RETIREMENTS BENEFITS
Plan Description
The Village provides post- retirement health benefits in accordance with the requirements of an
agreement between the Village and the Miami -Dade County Police Benevolent Association.
Police officers who retire and begin receiving benefits from the Village's pension plan on or
after October 1, 1991 are eligible to receive a monthly benefit of up to $100 to defray the cost
of health insurance coverage for the retiree.
Only those police officers who retire under the provisions of the Village's pension plan with
at least 25 years of creditable service, or who are granted a disability benefit under the
provisions of the Village's Pension Plan, are eligible for the retiree health benefit.
Eligible retired police officers receive the retiree health benefit until they become eligible for
Medicare benefits, at which time the Village retiree health benefit will cease.
Benefit payments are made by the employer directly to an insurance carrier or health benefit
program on behalf of the eligible retired police officer. If the retired police officer is covered
by any other insurance or health benefit program, the Village retiree health benefit will be
secondary to any and all other insurance or benefit programs. If the actual cost of the retired
police officer's participation in such other insurance or benefit program is less than $100 per
month, the Village retiree health benefit payable is the actual cost of such insurance or benefit
program. _.
The Village and police officers share the cost of establishing and maintaining the retiree
health benefit on a 50150 basis. The total cost of the retiree health benefit is determined by
periodic actuarial review. The employee contribution was $4.05 per employee per week,
payable by payroll deduction during the year ended September 30, 1998. Employee and
employer contributions are adjusted based on periodic actuarial review.
-21-
NOTE 8.
NOTE 9.
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
POST RETIREMENTS BENEFITS (Continued)
Plan Description (Continued)
Employee contributions to the retiree health benefit fund are refundable to the employee if the
employee terminates Village employment after contributing to the retiree health benefit fund
for ten (10) or more years. Any employee who receives a refund of contributions from the
retiree health benefit fund is not eligible to receive a retiree health benefit.
Funding Policy
As of September 30, 1998, there were 37 eligible participants. The Village contributions are
advance funded from the general fund on an actuarially determined basis. The actuary uses the
aggregate cost method based on the assumptions of an interest rate of 8% and salary increases of
6.5 %, which are consistent with the pension plan. Total contributions for the year were
approximately $8,000 including employee contributions. As of September 30, 1998, the Plan
had net assets of approximately $55,000 available for benefits and no liabilities.
RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts, theft, damage to and destruction of
assets, errors and omissions and natural disasters.
The maximum risk of loss for the Village is $350,000; thereafter the Village carries commercial
insurance. Florida law limits the liability in any one claim or judgment not to exceed $100,000
and in each occurrence not to exceed $200,000. The amount of settlements for each of the past
three fiscal years did not exceed insurance coverage. There was no reduction in insurance
coverage from coverage in the prior year.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss
can be reasonably estimated. Liabilities include an amount for claims that have been incurred
but not reported (IBNR's). Claim liabilities are calculated considering the recent claim
settlement trends. The liability for claims is reported in the Internal Service Fund. Changes in
the balances of claims liabilities during the past two years are as follows:
NOTE 10. BUDGET /GAAP RECONCILIATION
The following schedule reconciles the amounts on the combined statements of revenues,
expenditures and changes in fund balance - budget to actual to the amounts on the combined
statement of revenues, expenditures and changes in fund balances.
Excess of revenues over expenditures (budgetary basis) $739,255
Accrual for compensated absences, net 6.2:37
Excess of revenues over expenditures (GAAP basis) $745,492
-22-
1998
1997
Unpaid claims, beginning
$ 665,015
$652,812
Incurred claims (including IBNR's)
164,716
82,974
Claim payments
(111,761
70.771
Unpaid claims, ending
$ 717,970
$665.015
NOTE 10. BUDGET /GAAP RECONCILIATION
The following schedule reconciles the amounts on the combined statements of revenues,
expenditures and changes in fund balance - budget to actual to the amounts on the combined
statement of revenues, expenditures and changes in fund balances.
Excess of revenues over expenditures (budgetary basis) $739,255
Accrual for compensated absences, net 6.2:37
Excess of revenues over expenditures (GAAP basis) $745,492
-22-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. EMPLOYEES' RETIREMENT SYSTEM
Basis of Accounting
The Village's Employees' Retirement Systems financial statements are prepared using the
accrual basis of accounting. Plan member contributions are recognized in the period in which
the contributions are due. Employer contributions to each plan are recognized when due and
the employer has made a formal commitment to provide the contributions. Benefits and
refunds are recognized when due and payable in accordance with the terms of the Plan.
Method Used to Value Investments
Investments are reported at fair value. Securities traded on a national or international exchange
are valued at the last reported sales price. Net appreciation (depreciation) in fair value of
investments, realized and unrealized gains (losses) are determined on the basis of specific cost.
Within certain limitations as specified in the Plan, investment policy is determined by the
Board of Trustees and is implemented by an investment advisor. The Board of Trustees uses
the following guidelines:
• Unlimited investments in bonds, notes or other obligations of the United States
Government, State of Florida or political subdivision or agencies thereof, preferred stocks
and money market investments.
• Investments in common stocks cannot exceed 50% of the total assets of the Plan on a cost
basis.
• Investments in corporate bonds must hold a rating in one of the three highest
classifications by a major rating service and be listed on any one or more of the
recognized national stock exchanges.
Plan Description
The Village is the administrator of a single- employer Public Employee Retirement System
(PERS) established 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
statements as a pension trust fund.
Membership in each retirement system consisted of the following at October 1, 1997, the date
of the latest actuarial valuation:
„1-
L
General
Police
Retirees and beneficiaries receiving benefits
28
10 v-
Terminated plan members entitled to but not yet receiving benefits
3
-
Active plan members
63
30
Total
94
40
Active employees:
Fully- vested
22
16
Non - vested
41
14
63
30
-23-
IMIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. EMPLOYEES' RETIREMENT SYSTEM (Continued)
Plan Description (Continued)
Under the plan, all full -time permanent employees upon completion of one year of credited
service are eligible. 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, retirement benefit was 2% for the first 25 years of service and 2%2
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 2.7% for the next ten years of service; plus 2.5% in excess of 25 years
(maximum 30 years). Subsequent to October 1, 1993, the retirement benefit for the first ten
years of credited service is 2.4 %; plus2.7% for the next 15 years; 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. Subsequent to September 30, 1994, the retirement benefit for the
first 5 years of credited services is 2.4 %; plus 2.7% for the next 20 years; plus 2.5% in excess
of 25 years (maximum of 30 years); plus 2% of monthly final compensation multiplied by the
number of years of credited service over 39.25 years. Subsequent to September 30, 1995, the
retirement benefit for the first 5 years of credited service is 2.4 %; plus 2.75% for the next 20
years; plus 2.3% in excess of 25 years (maximum of 30 years); plus 2% of monthly final
compensation multiplied by the number of years of credited service 39.25 years. Subsequent
to September 30, 1996, the amount of monthly retirement annuity for a police officer who
retires or terminates subsequent to October 1, 1996 and prior to September 30, 1997 will be
equal to 2.4% of the monthly average final compensation multiplied by the number of years
of creditable service up to 5; plus 2.8% beginning at 6 years and up to 25 years, plus 2.1%
over 25 years but not to exceed 30 years; plus 2% of the monthly average final compensation
multiplied by the number of years of creditable service over 39.25 years. Subsequent to
September 30, 1997, the amount of monthly retirement annuity for a police officer who
retires or terminates subsequent to October 1,1997 and prior to September 30, 1998 will be
equal to two and four - tenths percent (2.4 %) of the monthly average final compensation
multiplied by the number of years of creditable services up to five (5); plus two and eight -five
hundredths percent (2.85 %) of the monthly average final compensation multiplied by the
number of years of creditable service beginning at six (6) years and up to twenty -five (25)
years; plus one and nine tenths percent (1.9 %) of the monthly average final compensation
multiplied by the number of years of creditable service over twenty-five (25) years, but not to
exceed a total of thirty (30) years of creditable service; plus two percent (2 %) of the monthly
average final compensation multiplied by the number of years of creditable service over
thirty -nine and one fourth (39.25) years. The employee's contribution shall not exceed 9% of
his earnable compensation. Under no circumstances shall an employee receive an amount of
monthly retirement annuity less than 2% times the total number of years of service.
-24-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. EMPLOYEES' RETIREMENT SYSTEM (Continued)
Plan Description (Continued)
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 general 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. Beginning October 1, 1997, police officer retirees will
receive a 1% cost of living increase.
Funding Policy
General employees and police officers are required to contribute 6% and 9 %, respectively, of
their salaries to the Plan. 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. Village contributions are actuarially determined. Village
contribution limits are established by Village charter not to exceed one mill and may be
amended only by special referendum.
Annual Pension Cost and Net Pension Obligation
As of October 1, 1997 (date of transition), the Village had made all of its required annual
contributions and thus did not have a net pension obligation at year end.
The annual required contributions for the current year were determined as part of the October 1,
1997 actuarial valuation using the frozen entry age actuarial cost method. The actuarial
assumptions included (a) 8% investment rate of return (net of administrative expenses) and
(b) projected salary increases ranging from 7% per year. Both (a) and (b) included an
inflation component of 4 %. The assumptions did not include post - retirement benefit
increases. The actuarial value of assets was determined using market value less unrecognized
capital appreciation, where capital appreciation is recognized at the rate of 20% per year.
Fiscal Year Ending
9/30/96
9/30/97
9/30/98
Three -Year Trend Information
Annual Pension
Cost (APQ
$262,633
249,327
253,370
-25-
Percentage of Net Pension
APC Contributed Obligation
100%
100%
100%
u
REQUIRED SUPPLEMENTARY INFORMATION
MIAMI SHORES VILLAGE, FLORIDA
PENSION TRUST FUNDS
SCHEDULE OF FUNDING PROGRESS
-26-
UAAL
Actuarial
as a
Actuarial
Accrued
Percentage
Value
Liability
Unfunded
of
Actuarial
of
(AAL)
AAL
Funded
Covered
Covered
Valuation
Assets
Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
Lal
(b)
(b -a)
(a/b)
(c)
-a /c
10/1/92
$ 8,656,344
$ 8,333,888
$ (322,456)
103.9%
$ 3,060,775
-10.5%
10/1/93
9,539,357
9,211,131
(328,226)
103.6%
3,111,680
-10.5%
10/1/94
9,380,878
9,436,798
55,920
99.4%
2,925,881
1.9%
10/1/95
10,193;957
10,100,353
(93,604)
100.9%
2,900,044
-3.2%
10/1/96
11,043,748
10,651,327
(392,421)
103.7%
3,333,873
-11.8%
10/1/97
11,990,762
11,411,093
(579,669)
105.1%
3,382,347
-17.1%
-26-
MIAMI SHORES VILLAGE, FLORIDA
PENSION TRUST FUNDS
SCHEDULE OF CONTRIBUTIONS FROM EMPLOYER AND OTHER CONTRIBUTING ENTITIES
Year
Annual
Contribution
Contribution
Ended
Required
from
from
Perc.-ntage
September 30,
Contribution
Emplover
State
Contributed
1993
S 185,656
$ 172,460
$ 21,528
104%
1994
238,913
214,712
24,201
100%
1995
248,001
225,844
22,157
100%
1996
262,633
240,362
22,271
100%
1997
249,327
223,938
25,389
100%
1998
253,370
224,865
28,806
100%
The information presented in the required supplemental schedules was determined as part of the actuarial
valuations at the dates indicated. Additional information as of the latest actuarial valuation follows.
Valuation date 10/1/97
Actuarial cost method Frozen Entry Age
Amortization method N/A
Remaining amortization period N/A
Asset valuation method 5 year smoothed market
Difference between actual and expected return recognized
Actuarial assumptions:
Investment rate of return* 8% per year compounded annually, net of investment
related expenses
Projected salary increases* 6.50%
Cost of living adjustments N/A
*Includes inflation at 4%
-27-
COMBINING, INDIVIDUAL FUND AND ACCOUNT
GROUP STATEMENTS AND SCHEDULES
GOVERNMENTAL FUND TYPES
GENERAL FUND
The General Fund is the principal operating 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
CON P.ARATIA -E BALANCE SHEETS
SEPTEMMER 30, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
ASSETS
1998 1997
Cash and cash equivalents
$ 2,372,533
$ 2,347,524
Accounts receivable, net
835,968
609,057
Due from other governments:
State of Florida
80,924
50,210
Federal Government
10,401
5,173
Miami -Dade County
9,037
1,976
Prepaid costs
11,176
5,168
Inventories
33.017
25.519
Total assets
$ 3,353.056
$ 3,044,627
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$ 159,865
$ 152,836
Accrued liabilities
145,178
234,753
Workers compensation claims payable
41,797
41,922
Deferred revenues
692.626
692.362
Total liabilities
1.03 9.466
1.121.873
Fund Balances:
Reserved for:
Encumbrances
183,601
253,036
Subsequent years' expenditures
68,122
112,000
Prepaid costs
11,176
5,168
Inventories
33,017
25,519
Unreserved:
Designated for capital outlay
1,163,358
614,370
Designated for future use
-
63,810
Designated for emergencies and contingencies
854.316
848.851
Total fund balances
2,313.590
1.922.754
Total liabilities and fund balances
$ 3,353,056
$ 3,044,627
-25-
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
COMPARATIVE STATEMENTS OF REVENUES. EXPENDITURES
AND CHANGES IN FUND BALANCE
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
-29-
1998
1997
Revenues:
Taxes
$ 4,525,306
$ 4,285,860
Licenses and permits
211,459
196,806
Intergovernmental revenues
1,203,077
1,196,306
Charges for services
2,304,259
2,074;061
Fines and forfeitures
205,237
207,350
Miscellaneous revenue
225,576
224,311
Interest
145.072
143.820
Total revenues
8.819.986
8.328.514
Expenditures:
Current:
General government
991,327
979,562
Public safety
3,008,694
2,921,98'
services
2,169,676
2,112,754
Culture /recreation
1,516,542
1,471,706
Capital outlay
353,381
423,557
Debt service:
Principal
31,374
30,947
Interest
3.500
3.928
Total expenditures
8.074.494
7.944.437
Excess of revenues over expenditures
745.492
384.077
Other financing sources (uses):
Operating transfers in
20,000
-
Operating transfers out
(374.656)
(384.908)
Total other financing uses
(354.656)
(384.908)
Excess (deficiency) of revenues over
expenditures and other financing uses
390,836
(831)
Fund balance, beginning
1.922.754
1.923.585
Fund balance, ending
$ 2,3137590
$ 1,922.754
-29-
MIAJII SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES .'D EXPE \DITURES -BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(\PITH COMPARATIVE TOTALS FOR FISCAL. YEAR ENDED SEPTEMBER 30, 1997)
Revenues:
Taxes:
Property taxes, current and delinquent
Franchise taxes
Utility taxes
Total taxes
Licenses and permits:
Business licenses
Building permits
Other licenses and permits
Total licenses and permits
Intereovernmental revenues:
State shared revenues:
COPS Fast Grant
Law Enforcement Grant
Law Enforcement Block Grant
Operations Midstream Grant
Juvenile Facility Grant
Theater Grant
Library Grant
Summer Jobs Program Grant
Cigarette taxes
State revenue sharing
Beverage licenses
Local government half cent sales tax
Department of transportation (landscape maintenance)
Local option gas tax trust
FEMA Grant
County shared revenues:
County occupational licenses
School crossing programs
Recycling grant
Total intergovernmental revenues
Charges for services:
Public safety
Physical environment
Transportation
Culture/recreation
Total charges for services
Fines and forfeitures:
Court fines and costs
Other
Total fines and forfeitures
Miscellaneous revenue:
Donations
Rents
Other revenue
Total miscellaneous revenue
Interest
Total revemies
0-
Budgetary
Variances
Budgetary
Basis
Favorable
Basis
Budget
Actual (Unfavorable)
Actual
1998
1997
S 2,986,804
S 3,032,661 S
45,857 S 2,857.501
487,500
506,824
19,324
500,444
935.200
985.821
50.621
927.915
4.409.504
4.525,306
115.802
4.285.860
66,000
68,176
2,176
67,047
101,000
107,250
6,250
97,948
35.000
36.033
1.033
31.811
202.000
211.459
9.459
196.806
_
_
-
28,988
-
4,707
4,707
-
32,059
-
(32,059)
-
23,883
-
(23,883)
-
65,000
57,500
(7,500)
30,000
_
_
50,000
10,000
10,000
-
36,104
36,104
-
32,521
12,039
11,136
(903)
11,011
223,315
232,045
8,730
225,583
1,200
1,538
338
771
504,016
540,396
36,380
515,033
17,318
17,318
-
17,318
237,722
238,736
1,014
237,429
-
13,599
13,599
-
14,500
16,772
2,272
14,704
21,000
18,671
(2,329)
21,107
4,555
4.555
11.841
1.198.156
1,203.077
4.921
1.196.306
144,458
138,018
(61440)
129,942
1,586,763
1,821,280
234,517
1,624,479
6,000
5,871
(129)
8,241
321.794
339,090
17.296
311.399
2.059.015
2,304259
245.244
2.074.061
81,000
74,310
(62690)
76,453
124.000
130.927
6.927
130.897
205,000
205,237
237
207.350
_
_
60
148,195
155,419
7.224
148,320
44.664
70.157
25. -193
75.931
192,859
225,576
32.717
224.311
133,000
145.072
12.072
143.820
S 8399.534
S 8,819.986
S 420.452
S 8.328.514
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Expenditures:
Current:
General government:
Village council:
Personnel services
Operating expenses
Village attorney:
Operating expenses
Village manager:
Personnel services
Operating expenses
Village clerk:
Personnel services
Operating expenses
Capital outlay
Finance:
Personnel services
Operating expenses
Capital outlay
Marketing:
Personnel services
Operating expenses
Capital outlay
Other general government:
Non - departmental:
Personnel services
Operating expenses
Non - operating expenses
Capital outlay
Human resources:
Personnel services
Operating expenses
Capital outlay
Summer Progxam:
Personnel services
Operating expenses
Total general government
-31-
Budgetary Variances
Budgetary
Basis Favorable
Basis
Budget Actual (Unfavorable)
Actual
1998
1997
$ 5
$ 1 $
4
$ 5
10.750
8.101 _
2.649
12.905
10.755
8.102
2.653
12.910
151.795
150.534
1.261
78.204
151.795
150.534
1.261
78.204
141,446
140,576
870
110,239
19.785
15.168
4.617
23.682
161.231
155.744
5.487
133.921
85,307
85,266
41
82,267
17,857
17,584
273
12,687
4.525
4.515
I0
3.762
107.689
107.365
324
98.716
187,233
179,932
7,301
170,718
62,995
53,823
9,172
54,240
8.186
5.086
3.100
16.294
258.414
238.841
19.573
241.252
40,069
39,196
873
57,430
56,349
51,573
4,776
88,699
-
- _
1.478
96.418
90.769
5.649
147.607
4,000
10,476
(6,476)
3,921
127,504
126,720
784
141,898
56,000
56,000
-
55,500
1.281
1.281
-
1436
188.785
194.477 _ M92)
204.755
- 32,868
23,410 21,701 1,709 21,747
- 2.320
23.410 21.701 _ 1.709 56.935
35,075
35,075
- 31,800
1.029
1.029
- 721
36.104
36.104
32.521
1.034.601
1.003 637
30.964 1.006.821
i
w
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Budgetary
Variances
Budgetary
Basis
Favorable
Basis
Budget
Actual (Unfavorable)
Actual
1998
1997
Public safety:
Law enforcement:
2,634,040 $
2,521,330 $
112,710 $ 2,444,257
Personnel services
260,697
260,697
230,103
30,594
212,491
Operating expenses
30,043
12,632
17,411
11,059
Capital outlay
4.166
2.933
1.233
4.368
Non - operating expenses
2,928.946_
2.766.998
161.948
2.672.175
Building and zoning:
140,197
133,637
6,560
128,202
Personnel services
40,021
36,357
3,664
37,038
Operating expenses
1.000
_
1.000
-
Capital outlay
181.218
169.994
11.224
165.240
Code enforcement:
82,990
79,723
3,267
83,631
Personnel services
13.888
8.095
5.793
10.540
Operating expenses
96.878
87.818
9.060
94.17]
3.207.042
3.024.810
182.232
2.931.586
Total public safety
Public services:
Public works administration:
300,567
6,739
259,557
Personnel services
16,401
16,401
16,289
112
14,316
Operating expenses
12.300
-
12.300_
1.453
Capital outlay
336.007
316.856
19.151
275.326
Street maintenance:
129,622
128,748
874
111,850
Personnel services
244,472
230,417
14,055
238,296
Operating expenses
305.444
176.734
128.710
272.250
Capital outlay
679.538
535.899
143.639
622.396
Solid waste collection:
647,038
638,760
8,278
623,878
Personnel services
620,248
613,709
6,539
608,841
Operating expenses
11.100
1.695
9.405
2.752
Capital outlay
1.278.386
1.254.164
24.222
1.235.471
Motor pool:
172,850
171,3 2
1,318
179,OS1
Personnel seances
75,669
68,7'.1
6,898
76,196
CTerating expenses
3.500
2.705
705
8
Capital outlay
252.019
� 43.098
8.921
263.-+1.3
2.545.950
2.350.017
195.933
2.396.661
Total public sea: ices
MIAiII SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Culture /recreation:
Parks:
Personnel services
Operating expenses
Capital outlay
Recreation:
Personnel services
Operating expenses
Non - operating expenses
Capital outlay
Recreation maintenance:
Personnel services
Operating expenses
Capital outlay
Library:
Personnel services
Operating expenses
Capital outlay
Total culture /recreation
Debt set-vice:
Principal
Interest
Total debt service
Total expenditures
-33-
Budgetary
Variances
Budgetary
Basis
Favorable
Basis
Budget Actual
(Unfavorable)
Actual
1998
9.634
1997
$ 263,436
$ 244,141 $
19,295
$ 258,635
84,249
61,667
22,582
91,569
60.054
50.420
9.634
13.402
407.739
356.228
51.511
363.606`
628,165
626,983
1,182
559.265
250,261
243,325
6,936
229,195
2,016
2,016
-
2.016
56.489
34.427
22.062
40.032
936.931
906.751
30.180
830.508
99,424
95,447
3,977
94,480
24,522
21,397
3,125
24,772 '-
7.900
7.634
266
1.755
131.846
124.478
7.368
121.007
189,574
188,271
1,303
177,650
37,521
35,502
2,019
33,502
62.607
56.162
6.445
45.372
289.702
279.935
9.767
256.524 \'
1.766.218
1.667.392
98.826
1.571.645
42,144
31,374
10,770
30.947
5.217
3.501
1.716
3.928
47.361
34.875
12.486
34.875
$ 8 ,601,172
$ 8,Oa 80,731 $
520,441
$ 7,941,588
.d
CAPITAL PROJECTS FUND
The capital projects fund accounts for financial resources used for acquisitions and
improvements to capital facilities.
MIAMI SHORES VILLAGE, FLORIDA
A
CAPITAL PROJECTS FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
ASSETS
Cash and cash equivalents
Prepaid costs
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Total liabilities
Fund equity:
Reserved for:
Encumbrances
Prepaid costs
Recreation department
Waste Department
Unreserved:
Designated for capital outlay
Total fund balances
Total liabilities and fund balances
-34-
1998 1997
$ 691,831 $ 690,356
29.179
$ 691.831 $ 719.535
$ 5.623 $ 1.539
5.623 1.539
154,383 285,126
- 29,179
294,705 313,330
123,500 -
113.620 90.361
686.208 717.996
$ 691,831 $ 719,535
MIAMI SHORES VILLAGE, FLORIDA
CAPITAL PROJECTS FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
1
Revenues: 998 1997
Intergovernmental revenues $ - $ 154,940
Interest 44.579 49,150
Total revenues 44.579 204.090
Expenditures:
Current:
Public safety
1,220
514,593
Public service
134,512
1,500
Culture/recreation
69,704
72,167
Debt service:
Principal retirement
192,842
184,541
Interest
52,745
55.937
Total expenditures
451,023
828.738
Deficiency of revenues over expenditures
406,444
624.648
Other financing sources:
Operating transfers in
374,656
384.908
Total other financing sources
374.656
384.908
Deficiency of revenues and other
financing sources over expenditures (31,788) (239,740)
Fund balance, beg'nn'_ng 717,996 957.736
Fund balance, ending $ 686,208 $ 717,996
-35-
PROPRIETARY FUND TYPES
ENTERPRISE FUND
The stormwater utility fund accounts for the operations and maintenance of the
stormwater system.
MIAMI SHORES VILLAGE, FLORIDA
ENTERPRISE FUND
COivIPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
ASSETS
Cash and cash equivalents
Due from other governments
Capital improvements
Total assets
LIABILITIES AND EQUITY
Liabilities:
Accounts payable
Equity:
Retained earnings
Total equity
-36-
1998 1997
$ 21,155 S 255,800
50,685 49;827
307.322 -
$ 379.162 S 305,627
$ 22,220 S 22,132
356.942 283.495
$ 379.162 S 305.627
MIAIAII SHORES VILLAGE,'ii' LORIDA
ENTERPRISE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
1998 1997
Charges for services
$ 117.843
$ 116.027
Operating expenses:
Personnel expenses
28,816
28.818
Administrative and general
20.921
75.190
Total operating expenses
49.737
104.008
Operating income
68,106
12,019
Non - operating income:
Interest income
5.341
12.743
Net Income 73,447 24,762
Retained earnings, beginning 283.49 258.733
Retained earnings, ending $ 356,942 $ 283.495
-37-
INTERNAL SERVICE FUND
The self insurance fund accounts for the accumulation and allocation of costs associated
with insurance.
MIAMI SHORES VILLAGE, FLORIDA
INTERNAL SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
ASSETS 1998 1997
Cash and cash equivalents $ 722,066 $ 681.225
Other assets 5,942 -
Land held for sale 30,000 30.000
Total assets $ 758,008 $ 711.225
LIABILITIES AND EQUITY
Liabilities:
Accounts payable $ 10,038 $ '..541
Deferred revenue - 11669
Estimated insurance claims 717.970 665.015
Total liabilities 728,008 68 1.7225
Equity:
Retained earnings - reserved
Total liabilities and equity
30.000 3-0.000
$ 758.008 $ 71 =.225
MIAMI SHORES VILLAGE, FLORIDA
INTERNAL SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
1998 1997
Charges for services $ 456.000 $ 493.253
Operating expenses:
Insurance premiums
261,570
261,815
Claims
139,715
173.385
Administrative
97.860
101.15 8
Total operating expenses
499.145
536.358
Operating loss
(43,145)
(43,105)
Non - operating income:
Interest income
43.145
43.105
Net income
Retained earnings - reserved, beginning 30.000 30.000
Retained earnings - reserved, ending $ 30,000 $ 30.000
__
FIDUCIARY FUND TYPES
TRUST AND AGENCY FUNDS
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.
Police Insurance Trust Fund - To accumulate resources on behalf of police
personnel to partially cover retirement health insurance.
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 law enforcement purposes.
Pension Trust Fund:
Pension Trust Fund - To account for the accumulation of resources for pension
benefit payments to retirees of Miami Shores Village.
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MIAMI SHORES VILLAGE, FLORIDA
EXPENDABLE TRUST FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Revenues:
Fines and forfeitures
Contributions
Miscellaneous revenue
Interest
Confiscated property
Total revenues
Expenditures:
Current:
Public safety
Culture /recreation
Capital outlay
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing uses:
Operating transfers out
Total other financing uses
Excess (deficiency) of revenues over
expenditures and other financing uses
Fund balances, beginning
Fund balances, ending
Law
Police Enforcement
General Insurance Training Police Totals
Trust Trust Trust Forfeiture 1998 1997
$ 22,500 $ - $ 2,693 $ - $ 25,193 $ 2,979
- 6,811 - - 6,811 7,707
- - 700 700 18,353
9,645 9,645 3,116
262,676 262.676 75.066
22.500 6.811 2.693 273.021 305.025 107.221
-
-
1,026
13,328
14,354
30,630
17,809
-
-
-
17,809
15,0.4
-
-
-
-
81.873
17.809
-
1.026
13.328
32.163
127.547
4,691
6,811
1,667
259,693
272,862
(20,326)
-
-
-
20.000 )
(20.000)
-
-
-
-
(20,000)
2( 0.000)
_
4,691
6,811
1,667
239,693
252,862
(20,326)
15.442
48.666
625
93.787
158,520
178.846
$ 20,133
$ 55,477 $
2,292
$ 333,480
$ 411.382 $
158.520
-41-
`'IIAMI SHORES VILLAGE, FLORIDA
PENSION TRUST FUND
COMBINING STATEMENTS OF PLAN NET ASSETS
SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
ASSETS
Cash with pension trustee
Investments. at fair value
Other assets
Total assets
LIABILITIES AND NET ASSETS HELD
IN TRUST FOR PENSION BENEFITS
Liabilities:
Accounts payable
Net assets held in trust for
pension benefits
Total liabilities and net assets
held in trust for pension benefits
Totals
General Police 1998 1997
$ 11,413 $ 15,595 $ 27,008 $ 32,864
6,657,902 9,098,419 15,756,321 14,698,120
37 51 88 75
$ 6,669,352 $ 9,114,065 $ 15,783,417 $ 14,731,059
$ 10,672 $ 14;584 $ 25,256 $ 28,103
6.658.680 9.099.481 15.758.161 14.702.956
$ 6,669,352 $ 9,114,065 $ 15,783,417 $ 14,731,059
MIAMI SHORES VILLAGE, FLORIDA
PENSION TRUST FUND
COMBINING STATEMENTS OF CHANGES IN PLAN NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
0 1TH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1997)
Deductions
Benefit payments and refunds
215,609
355,496
Totals
549.256
General
Police
1998
1997
Additions
Total deductions
226.921
370.565
597.486
Contributions:
Net increase
390,481
664,724
1,055,205
Employer
$ 23,162
$ 201,403
$ 224,565
$ 223,938
State
-
30,193
30,193
28,806
Employees
107.469
130.324
237.793
225.044
Total contributions
130.631
361.920
492.551
477.788
Investment income:
Investment earnings
522,262
722,547
1,244,809
2.775,144
Less investment expenses
(42.186)
(58.365)
(100.551)
(100.334)
Net investm.-nt income
480.076
664.182
1.144.258
2.674.810
Other income
6.695
9.187
15.882
505
Total additions
617.402
1.035.289
1.652.69I
3.153.103
Deductions
Benefit payments and refunds
215,609
355,496
571,105
549.256
Administrative and general
11.312
15.069
26.381
119.453
Total deductions
226.921
370.565
597.486
668.709 A`
Net increase
390,481
664,724
1,055,205
2,484,394
Net assets held in trust for pension benefits:
Beginning of year 6,268.199 8.434.757 14.702.956 12.218.562
End of year $ 6,658,680 $ 9,099,481 $ 15,758,161 $ 14.702.956 #
-43-
GENERAL FIXED ASSETS
ACCOUNT GROUP
To account for fixed assets other than those accounted for in Proprietary Funds or Trust
Funds. .
NIIAMI SHORES VILLAGE, F' LORIDA
SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 1998
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1997)
1998 1997
General fixed assets:
Land $ 718;531 $ 718,531
Buildings 3,685;815 3,621,636
Improvements other than buildings 2,613,728 2,435,906
Equipment 3.964.690 3.796.036
Total general fixed assets $ 10,982.764 $ 10,572,109
Investment in general fixed assets:
General fund
$ 5,626,122
$ 5,420,531
Capital projects fund
3,373,272
3,168,208
Country Club
1,333,183
1,333,183
Gifts and donations
51,728
51,728
Confiscated property
582;945
582,945
Insurance fund
15.514
15.514
Total investment in general fixed assets
$ 10,982364
$ 10,572.109
-4 -: -
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF GENER-kL. FIXED ASSETS - BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1998
Function
General government - finance
and administrative
Public safety - police
Public services - public works
Culture /recreation:
Parks and recreation
Library
Country Club
Total culture /recreation
Total general fixed assets
allocated to fimctions
Improvements
Other than
Land Buildings Buildings Equipment
$ 1,500 S 232,720 $
- 1,367,56I
71,264 427,545
Total
94,777 $ 328,440 $ 65 7,43 7
36,219 970,509 2.374.289
1,754,998 1,748,339 4.002.146
62,350
960,303
463,176
547,543
2.033.372
2,500
350 ;269
2,795
226,773
582.337
580.917
347.417
261.763
143.086
1.333,183
645.767
1.657.989
727.734
917.402
3.948.892
$$ 7® L1,685,815 $ 2,613,728 $ 3,9i 64.690 $ 10® 98® 2,764
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 1998
General government:
Finance and administrative
Public safety - police
Public services - public works
Culture /recreation:
Parks and recreation
Library
Country Club
Total culture /recreation
Total general fixed assets
allocated to functions
Balance
Balance
September 30,
September 30,
1997
Additions
Deletions
1998
$ 646,555
$ 10,882
$ -
$ 657,437
2,396,535
13,480
35,726
2,374,289
3,738,400
315,738
51,992
4,002,146
1,889,188
162,184
18,000
2,033,372
568,248
14,089
-
582,337
1.333,183
-
-
1.333.183
3,790.619
176.27" )
18.000
3.948.892
$ 10,572,109 $ 516,373 $ 105,718 $ 10,982,764
-46-
COMPLIANCE SECTION
I_..I
CERTIFIED PIMIC ACCOUNTANTS & CONSULTANTS
A Partnership Including Professional Association-
Report of Independent Certified Public Accountants on Compliance and on
Internal Control over Financial Reporting Based on an Audit of General Purpose
Financial Statements Performed in Accordance with Government Auditing Standards
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
We have audited the financial statements of Miami Shores Village, Florida (the "Village ") as of and for
the year ended September 30, 1998, and have issued our report thereon dated November 16, 1998 which
was qualified because insufficient audit evidence exists to support the Village's disclosures with respect
to the year 2000 issue. Except as discussed in the preceding sentence, we conducted our audit in
accordance with generally accepted auditing standards and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws and regulations, non-
compliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of non - compliance that are required to be reported under Government Auditing
Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Village's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the
financial statements and not to provide assurance on the internal control over financial reporting. Our
consideration of the internal control over financial reporting would not necessarily disclose all matters in
the internal control over financial reporting that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components does not
reduce to a relatively low level the risk that misstatements in amounts that would be material in relation
to the financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. We noted no matters involving
the internal control over financial reporting and its operation that Nve consider to be material weaknesses.
-47-
Home Page: http: /;
One Southeast Third :venue, Tenth Floor, Miami, Florid "15 - Dais. 305 77- = = =j • Fax 605; 377 -8331
700 Southeast Third Avenue, Third Floor, Ft.Lauderdale, Florida 3331c - Bro-,�- and .954) 5'_5 -1040 - Fax (954) 325 - 2004
'lem '. s;titutc, Of C..; :: '- the D:
11*.
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
Page Two
However, we noted other matters involving the internal control over financial reporting, which
accompany this report in the schedule of findings.
This report is intended for the information of the Mayor, Village Council and Managemeent. However,
this report is a matter of public record and its distribution is not limited.
Miami, Florida
November 16, 1998
d'v&' r "Uj L. (-'-4
031
C- 'IFIED PCS ACconTA \TS chi CONSULTANTS
A Partner-:- [[nduding Professional Associations
Management Letter in Accordance with the Rules of the
Auditor General of the State of Florida
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
We have audited the financial statements of Miami Shores Village, Florida (the "Village ") as of and for
the year ended September 30, 1998, and have issued our report thereon dated November 16, 1998 which
was qualified because insufficient audit evidence exists to support the Village's disclosures with respect
to the year 1-000 issue. Except as discussed in the preceding sentence, we conducted our audit in
accordance with generally accepted auditing standards and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.
In connection with our audit of the financial statements of the Village for the year ended September 30,
1998, 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)(e):
1. No inaccuracies, irregularities, shortages, defalcations or violations of laws, rules, regulations and
contractual provisions were reported in the preceding annual financial audit.
The Village, during fiscal year 1998, was not in a state of financial emergency as defined by
Florida Statute, Section 218.503(1). The Village had no deficit fund balances.
Recommendations to improve the Village's present financial management are accompanying this
report in the schedule of findings.
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, regulations or contractual provisions.
b. Made any illegal or improper expenditures.
-49-
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700 >:.;theast Thirc: Ati-enue, Third Floor, Ft.Lauderdale, Florida 33310 • Brmvard (951) 525 -1010 • Fax (931) 5=5 -2001
::,t .
C,-: ,.,,
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
Page Two
c. Had improper or inadequate accounting procedures.
d. Failed to record financial transactions which could have a material effect on the Village's
financial statements.
e. Had other inaccuracies, irregularities, shortages or defalcations.
5. The annual financial report for the year ended September 30, 1998 has been filed with the
Department of Banking and Finance pursuant to Section 218.32(1)(a), Florida Statutes and is in
agreement with the audited financial statements of the same period.
6. The Village was incorporated by Chapter 163, Florida Statutes.
This report is intended for the information of the Honorable Mayor, Village Council and Management of
the Village, and the Auditor General of the State of Florida. However, this report is a matter of public
record and its distribution is not limited.
Miami, Florida
November 16, 1998
XL�- (,�� A?41
-50-
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1998
PART I. CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS
OTHER MATTERS
Public Safety Department
Observation
1. In connection with the Village's normal procedural testing of cash receipts in the Public Safety
Department, we noted that deposits are not being made on a timely basis. It appears that receipts
are being accumulated for up to thirty days before they are deposited. As a result, there is a risk
of theft, misplacement and/or misappropriation.
Recommendation
1. We recommend that cash receipts be deposited on a daily basis to reduce the risk of loss.
Management's Response
1. The Village Manager will issue a memo to direct the Department to follow the procedures and
policies that were previously implemented and that any cash must be deposited with the Finance
Department on the same date of receipt.
2. An internal control review will be performed in January to examine if any additional revision
need to be implemented.
PART H. PRIOR YEAR'S COMMENTS AIND RECOMMENDATIONS
Implications of the "Year 2000" Software Issue
Condition
Effective January 1, 2000, several computer systems will experience an incapability of handling data
maintenance and general system calculations relating to the change in years. This situation may
occur if the computer program uses two digits in the "year" field (i.e., "97" for 1997). Once the year
2000 is reached in such a system, the "00" will be interpreted as 1900 and the transactions may not be
posted correctly.
Recommendation
The City should begin analyzing its current system to determine whether or not it will experience
conversion issues related to the change in years. If a problem is determined to exist, the current system
should be revised in order to enable it to handle the conversion. The system's ability to handle the
conversion should be analyzed and updated on an ongoing basis to ensure no critical problems are
experienced in the future. This should be a consideration in any new system to be purchased.
-51-
NIIA-II SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART II. PRIOR YEAR'S COMbtENTS AND RECOMMENDATIONS (Continued)
Implications of the "Year 2000" Software Issue (Continued)
Management's Response
The City has already contacted the City's software service provider, and they have already begun
preparing a systems modification for the year 2000. See Note 2 of general purpose financial
statements.
Recreation Department
Observation
1. In connection with the Village's normal procedural testing of cash receipts in the Recreation
Department, we noted that deposits are not being made on a timely basis. It appears that receipts
are accumulated for up to three days before they are deposited. As a result, there is a risk of theft,
misplacement and/or misappropriation.
2. We also noted that the cash receipts from the day shift were not reconciled to the pre- numbered
receipt book and closed out for the following shift. As a result of not having a supervisor assist in
the closing of the shift and verifying the receipt for that shift, the opportunity for a
misappropriation of funds can be present. Additionally, not closing out each shift makes it
difficult to determine when the potential loss occurred.
Recommendations
1. We recommend that cash receipts be deposited on a daily basis to reduce the risk of loss.
2. We recommend that each shift's receipts be reconciled to the receipt book by the supervisor and
that each attending employee be required to sign -off on the reconciliation along with the
supervisor's signature. Additionally, each attending employee should be held accountable for
receipts during their shift.
Management's Response
Management implemented the above recommendations in fiscal year 1998.
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