2000MIAMI SHORES VILNAGE
Comprehensive Annual Financial Report
financial planning
Lability...
For The Fiscal Year
Ended September 30, 2000
MIAMI SHORES VILLAGE, FLORIDA
GENERAL PURPOSE FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2000
Prepared by
THE FINANCE DEPARTMENT
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
INTRODUCTORY SECTION
PAGE
Letter of Transmittal i
Organizational Chart viii
Village Officials ix
FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
Combined Balance Sheet - All Fund Types and Account Groups
2 -3
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
All Governmental Fund Types and Expendable Trust Funds
4
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - All Budgeted Governmental Fund Types
5
Combined Statement of Revenues, Expenses and Changes in Retained Earnings -
All Proprietary Fund Types
6
Combined Statement of Cash Flows - All Proprietary Fund Types
7
Combined Statement of Changes in Plan Net Assets - Pension Trust Fund
8
Notes to General Purpose Financial Statements
9 -25
Required Supplementary Information
26 -27
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 -33
Special Revenue Funds:
Combining Balance Sheet 34
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 35
Combining Statement of Revenues and Expenditures - Budget to Actual 36
Capital Projects Funds:
Combining Balance Sheets 37
Combining Statements of Revenues, Expenditures and Changes in Fund Balances 38
Combining Statements of Revenues and Expenditures - Budget to Actual 39
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES, Continued
Proprietary Fund Types
Enterprise Funds:
Comparative Balance Sheet 40
Combining Statement of Revenues, Expenses and Changes in Retained Earnings 41
Internal Service Fund:
Comparative Balance Sheets 42
Comparative Statements of Revenues, Expenses and Changes in Retained Earnings 43
Fiduciary Fund Types
Trust and Agency-Funds:
Combining Balance Sheets - Trust and Agency Funds 44
Combining Statements of Revenues, Expenditures and Changes in Fund Balances -
Expendable Trust Funds 45
Comparative Statements of Plan Net Assets - Pension Trust Fund 46
General Fixed Assets Account Group
Schedules of General Fixed Assets - By Source 47
Schedule of General Fixed Assets - By Function and Activity 48
Schedule of Changes in General Fixed Assets - By Function and Activity 49
STATISTICAL SECTION
General Governmental Expenditures by Function
50
General Governmental Revenues by Source
51
Property Tax Levies and Collections
52
Assessed Value of Taxable Properties
53
Property Tax Levies
54
Direct and Overlapping Debt
55
Demographic Information and Statistics
56
Property Value, Construction and Bank Deposits
57
Miscellaneous Information
58
Principal Taxpayers
59
Ten Largest Public and Private Employers Located in Miami -Dade County, Florida
60
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
SUPPLEMENTARY AUDITOR'S REPORTS 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 61 -62
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 63 -64
Schedule of Findings 65 -75
Thomas J. Benton
Chief Executive Officer - Village Manager
Mark A. Malatak, CPA
Chief Financial Officer - Finance Director
Mayor Mark Ulmer and
Members of the Village Council
10050 Northeast Second Avenue
Miami Shores, Florida 33138 -2382
Dear Mayor Ulmer and Council members:
10050 N.E_ SECOND AVENUE
MIAMI SHORES, FLORIDA 33138 -2 38 2
December 15, 2000
FINANCE DEPARTMENT
TELEPHONE (305) 795-2209
FAX (305) 756-8972
In compliance with § 11.45 Florida State Statutes and Chapter 10.550 of the Rules of the Auditor General, we are
pleased to submit for your review and consideration the Mianri Shores Village Comprehensive Annual Financial
Report (CAFR) for the fiscal year ended September 30, 2000. This report provides you with audited financial
statements, reported in a manner designed to present fairly the financial position and results from operations of
the various funds and account groups of Miami Shores Village. All disclosures necessary to enable readers to
gain an understanding of the Village's financial activities have been included. The Village management is
responsible, in all material respects, for both the accuracy of the data and the completeness of the presentation
including all disclosures. The report is prepared in conformance with generally accepted accounting principles
(GAAP) and standards delineated by the Government Accounting Standards Board (GASB).
The Comprehensive Annual Financial Report is presented in four sections: 1) Introduction; 2) Financial; 3)
Statistical; and, 4) Supplementary Auditor's Report. The Introduction Section is unaudited and includes this
transmittal letter, and an organization chart along with a schedule of key officials employed by the Village during
the reporting period. The Financial Section consists of the independent certified public accountants report, the
combined general purpose financial statements, notes to the financial statements highlighting key issues reported
in the statements, and detailed combining and individual fund and account groups along with supporting
schedules. The Statistical Section contains selected financial and general information presented in a multi -year
format to allow extended comparisons or reviews of historical trends. The Supplementary Auditor's Report
Section provides the regulatory or mandated compliance statements prepared by the independent auditors
including an audit compliance report, management letter, current and prior years' comments and corresponding
recommendations that were identified during the audit process.
The Village is a comprehensive municipal corporation providing a wide range of services. The Village is
responsible for police protection services, sanitation and recycling programs, a full- service recreation program
including the new aquatics facility, storm water drainage services along with the construction and maintenance
of Village -owned properties (i.e. -- streets, sidewalks, right -of -ways, parks and other municipal properties).
FINANCIAL INFORMATION
The Village Administration is responsible for developing and implementing an internal control structure designed
to ensure that Village assets are protected from loss, theft or abuse. Additionally, staff has developed policies
and procedures to ensure that adequate controls exist to protect the fiscal integrity of the organization. The
FY 1999 -2000 Audit Transmittal Letter
December 15, 2000
internal control structure is designed to provide reasonable, but not absolute assurance that these objectives are
met. The concept of reasonable assurance recognizes that: 1) the cost of the controls should not exceed the
benefits that are likely to be derived; and 2) that the costs and benefits require routine and ongoing analysis that
may be subject to occasional adjustments identified by management.
Budgetary controls: The Village maintains budgetary controls at line -item levels, ensuring compliance with legal
provisions incorporated into the annual budget appropriation process and related Village Council amendments.
The criteria delineated by §200.065 Florida State Statutes establish the procedures to prepare, present, adopt,
implement and amend the operating budgets. While the Statute requires appropriations for the General and
Special Revenue Funds, the Village appropriates budgets for all funds to enhance the management controls and
fund security. The control levels at which expenditures cannot legally exceed appropriated amounts is set at the
department or division levels. The Village maintains fiscal and budget controls using an encumbrance - accounting
system that compares requested goods or services to unencumbered fund balances prior to the execution of
purchase orders or other legally- binding documents. Year -end encumbrances are reported as equity reservations
that are re- appropriated by the Village Council during the first quarter of the subsequent fiscal year. The Village
Manager or his designee is authorized to transfer budgeted amounts within departments of any fund; however,
budget modifications that change or adjust the total expenditure of any given department require Council action
by resolution. Monthly financial statements are prepared and reviewed by management to ensure budgetary
compliance. The reports: 1) ensure budgetary compliance of revenues, expenditures and outstanding
encumbrances; and, 2) confirm that disbursements are accurately reported in the correct line -item account(s).
GENERAL GOVERNMENTAL FUNCTIONS
Revenues: General Fund revenues and other operating sources including operating transfers -in totaled 57,434,556
for the fiscal year ended September 30, 2000. This represents a 13.3% decrease from the $8,427,006 reported
for FY 1999. The decrease results from the reclassification of the sanitation operations fees and related interest
previously reported in the general fund that now is reported separately in the enterprise fund. Additionally, the
Village experienced a 3.5% decline in state revenue sharing proceeds, a trend that carried forward from FY 1999
and is anticipated to continue into the FY 2001 and FY 2002 operating years. A detailed revenue analysis of the
General Fund follows:
Total Revenue Sources
Source
Amount
Percent of
Total
Increase /(Decrease)
from 1999
Percent of
Increase/
(Decrease)
Ad Valorem Revenues
S3,092,104
41.7%
$19,960
0.6%
Licenses & Permits
292,917
3.9%
61,243
20.9%
Intergovernmental
910,633
12?%
<31,938>
3.5%
Chargesforsetvices
492,005
66%
<1,653,898>
<3362 %>
Fines & Forfeitures
258,611
3.5%
146,681
56.7%
Interest income
228,906
3.1%
<32,072>
<14.0 %>
Other Revenues
389,088
5.2%
239,060
61.4%
Operating Transfers -in
1,770,292
23.8%
258,514
14.6916
TOTALS
$7,434,556
100.0%
$ <992,450>
<13.3 %>
92
FY1999- 2000Audit Transmittal Letter December I5, 2000
The single, largest General Fund revenue source originated from ad valorem or property tax distributions,
representing 41.7% of total receipts. Ad valorem collections were 0.6% greater than the FY 1999 collections
resulting from the increased assessed value of real and personal properties within the Village. In addition to
property tax revenues, the General Fund recorded revenues generated from the issuance of various licenses and
permit fees, distributions from state revenue sources (i.e.- -sales tax revenues, motor' fuel and cigarette taxes),
charges for services, various fines and other violations, and interest earnings. The General Fund also recognized
transfers -in from other enterprise fund operations (Sanitation and Storm water utilities) paid as management fees
for direct services and administrative overhead.
Expenditures: Total General Fund Expenditures were $7,159,119 for the fiscal year ended September 30, 2000.
The annual revenues exceeded expenditures resulting is a $275,137 surplus that produced an increase in the
Unreserved- Undesignated General Fund Balance. Surplus working capital in the general fund is held for future
financial needs or obligations ensuring the fiscal integrity of the organization. The FY 2000 expenditures were
14.1 % less than the prior year due primarily to the reclassification of the sanitation operations from the General
to the Sanitation Enterprise Fund supplementing the considerable cost containment controls implemented by
management to the operating departments.
Total Expenditures
Source
Amount
Percent
of Total
Increase '(Decrease)
from 1999
Percent of
Increase/
(Decrease)
General Government
$841,917
11.8%
5 <52,441>
<6.2 %>
PublicSafery
3,168,647
44.3%
142,324
4.5%
Public [forks
1,063,412
14.9%
<1,079,694>
<101.5 %>
Recreation & Culture
1,662,944
23.2%
123.401
7.4%
Other Services
197,216
2.7%
14.377
<40.2 %>
Operating Transfers -out
225,283
3.1%
<160.199>
<71.1%>
TOTALS
$7,159,419
100.0%
$ <1,012,232>
<14.] %>
General Government reports the following administrative departments or divisions of the Village: Mayor and
Village Council, Village Manager, Village Clerk, Village Attorney, Planning & Zoning Department, Human
Resources and Finance. Public Safety reports activities related to the Police Department, Building Department
and Code Enforcement Division. Public Works includes the Administrative Division, Parks, Recreation
Maintenance, Fleet Maintenance, Sanitation and Stotmwater Enterprise Funds. In the Recreation and Culture
category, the activities of the Administration, Community Center, Athletics (including the program divisions),
Aquatics, Tennis Division and the Library Operations are reported. Other Services reports those activities
reflected as Non - departmental or unclassified transactions that benefit the entire organization rather than those
items that may focus on one component or activity of the Village.
SPECIAL REVENUE FUNDS: Special revenue funds record proceeds from specific revenue sources with
restricted or limited expenditure authorities. There are four (4) funds reported under this section: 1) Excise Tax
Fund; 2) Local Option Gas Tax Fund; 3) Grant Fund; and, 4) Hurricane (or FEMA) Fund. The following
provides a highlight of those transactions reported in each respective fund.
Excise Tax Fund [120]--accounts for the proceeds or receipts of collected public service taxes (PST) and
franchise fees for utility services provided to the residents and businesses of the Village. These transactions
include all telecommunication taxes, electrical services, cable television or broadband services, gas, fuel oil and
t�
FY 1999 -2000 Audit Transmittal Letter December 15, 2000
other petroleum products and sanitation or private trash hauling fees. Note: as defined in the Bond Covenants
of the General Obligation Bond, Series 1999 (sold April 1999), all excise tax proceeds are pledged as
subordinated revenues should insufficient ad valorem revenues be received to meet the obligator, bond or debt
service payments. This conrnritnrent exists throughout the teen of the Bonds and may not be pledged for other
debt instruments.
Local Option Gas Tar Fund [130] -- reports the collection of sale tax levies on all gasoline, petroleum or
petroleum- related products sold in Miami -Dade County and allocated proportionately to the Village. The
proceeds received from these sources may only be used to design, develop or maintain Village -owned streets,
sidewalks, streetlights, right -of -ways and easements. Funds received but not spent or obligated during any fiscal
year are transferred to the Reserved - Undesignated Fund Balance account. Balances may be appropriated by the
Village Council for use in future or subsequent years.
Grant Fund [150] -- represents the group of accounts (and divisions) utilized to record all grant proceeds and the
corresponding disbursements. Once approved by the Village Council, grant applications are processed by the
applying department with copies of all contract documents sent to Finance. Grants awarded to the Village include
but are not limited to the Department of Justice and Treasury Departments for police - related grants; and, the
Gates Foundation for a library equipment grant. The Finance Department, accordingly, establishes a separate
division in the fund to report the costs related to each respective grant.
Hurricane -Stor in Fund [160] -- reports transactions related to disaster - related damage. Transactions reported in
this fund represent costs disbursed by the Village to repair or restore Village -owned assets damaged during
natural disasters. Only those items related to the disaster are reported and, correspondingly, are submitted for
reimbursement from insurance policies and/or from the Federal Emergency Management Agency (FEMA).
PROPRIETARY OR ENTERPRISE FUND OPERATIONS. The Village operates two enterprise fund
operations: Storm water and Sanitation. Enterprise funds are reported under the full- accrual basis of accounting,
recognizing revenues when earned regardless of when cash is received and expenditures when incurred not when
funds are disbursed. Assets used in each operation are paid by fund assets and depreciated; transferring
depreciation funds into supporting renewal and replacement accounts respectively. The Sanitation Fund reported
an operating loss of $51,018 on operating revenues of $1,638,167 and the Storm water Fund reported an
operating surplus of $19,096 on revenues of $119,965. The loss in sanitation results primarily from the one -time
accounting entry related to the transfer and liquidation of equipment. Prior to the adjustment, Sanitation reported
an operating surplus of $360,920.
INTERNAL SERVICE FUND. For FY 1999 -2000, the Village operated one internal service fund to centralize
the operational costs associated with risk management service. The Village is self - insured, calculating the
actuarial exposure for workers' compensation and general liability claims. Complying with various state statutes,
the Village contracts the third party administration of workers' compensation claims concurrently with a managed
care agent. Total costs are determined to meet the actuarial reserve requirement, self - insurance retention
thresholds, annual premium charges and general and administrative overhead. Once determined, total costs are
allocated to user departments in other funds by division(s). Workers' compensation costs are allocated applying
planned expenditures to the number of full and part time positions in the ratio. For casualty coverage, a ratio is
determined using the total operating divisional budgets as a percent of total budgets to determine the allocation
factor.
FIDUCIARY OPERATIONS.
General Employees and Police Retirement Systems- -the Village administers two pension systems. The General
Employees Retirement System is managed for non - police employees. The Police Retirement System (created
12 -31 -1999) was created in compliance with § 175 and § 185 Florida Chapter as amended by Public Law 99 -1 and
reports total assets, liabilities and benefits to qualified police officers.
OTHER OPERATIONS & FUNDS.
The General Fired Assets Account Group (GF-AAG) reports the general fixed or capital assets of the Village that
are not acquired or reported in other designated operating funds. The assets are wholly -owned by the Village and
FY 1999 -2000 Audit Transmittal Letter December 15, 2000
capitalized at the end of each fiscal year and reported accordingly. ]Vote: GASB 34 regulations require full
disclosure and depreciation of assets for reporting proposes. The Village has initiated compliance processes
for this regulation and will be revised in fixture years' reports. As of September 30, 2000, the total value of
assets reported in this account group is $13,952,43.1.
The General Long -ter?n Debt Account Group (GLTAG) is used as a self - balancing group of accounts designed
to account for liabilities arising from: 1) accumulated unpaid vacation and sick leave; 2) other short- and long-
term loans outstanding at fiscal year end; and, 3) the outstanding financial obligations reported for the General
Obligation Bond, Series 1999 (issued to acquire and construct the Miami Shores Aquatic Facility, opened in
November 2000. Total values for this account group are $386,954, $418,805, $644,594,and $3,145,000 for
workers' compensation reserves, accumulated leave costs, operating loans and the GO Bond costs respectively.
CASH MANAGEMENT AND TREASURY OPERATIONS.
The Finance Department is responsible for all cash management and treasury functions of the Village. Surplus
working capital is invested in short- and mid -range investments that ensure principal security while maximizing
returns on funds including reserves and residual cash. Investment policies comply with state restrictions and are
delineated in the annual operating budget document. Investments that are purchased by the Village include
repurchase agreements, commercial certificates of deposits, commercial paper or notes with ratings of Al or
better, as well as bankers acceptance notes and treasury certificates. Under normal circumstances, investments
are made for a one -year period or less, with an average investment time being 136 days.
ECONOMIC CONDITIONS AND OUTLOOK
Miami Shores Village, a Florida municipal corporation incorporated in 1932, is located in Northeast Miami -Dade
County. The Village has a year -round population estimated at 10,165 residents living within the 2.3 square mile
jurisdiction. The Village begins at Biscayne Bay on the east and goes west to Northwest Second Avenue. The
north and south boundaries are 115' Street and 91" Street respectively. The Village is primarily a residential or
bedroom community with a limited commercial district located on Second Avenue.
Operating under a Council- Manager form of government, the Council consists of five members elected at large.
The Mayor is elected by each of the newly formed councils. Historically, the mayor has received the highest
number of votes during the election with the Vice -mayor having received the second highest. Both the mayor
and vice -mayor serve four (4) year terms, two as mayor /vice -mayor and two as regular council members. The
Village Council is responsible for the selection and appointment of the Village Manager, Village Clerk and
Village Attorney. All other executives and associate positions are appointed by the Village Manager.
The Village is one of the more affluent communities in Miami -Dade County. Average household income is in
the top 6% of the County, posting a median of $55,322. Residents seek high levels of service from its
government. Accordingly, the Village's operations focus on public safety, public works (sanitation and storm
water) as well as a comprehensive recreation program and self - sustaining library.
In 1999, residents voted and the Village issued a $3.2 Million General Obligation Bond to design and construct
the new Miami Shores Aquatic Facility located adjacent to the Miami Shores Golf and Country Club (owned by
the Village and contracted for operations). The new swimming facility will open in November 2000 and offer
a state -of -the -art facility containing a competition -size and an activity pools with unique accouterments that will
provide younger patrons with an exciting and entertaining recreational facility.
The Village continues to upgrade its recreational facilities as demonstrated by the completion of the Athletics
Field House interior renovation. These improvements provide additional office space as well as an overall
upgrade of the facility including the installation of a new air - conditioning system and rehabilitation of the work
areas. The Village has also initiated renovation efforts on the basketball and tennis courts including the
permanent installation of two new backstops designed to provide a second regulation -size basketball court. Of
important note is the commitment to expand the responsibilities of the Fine Arts Committee charged with
identifying and offering additional cultural events for residents.
FY 1999 -2000 Audit Transmittal Letter December 15, 2000
The Planning and Zoning Department introduced programs and automation for zoning materials and the overall
process. Color palettes have been introduced along with new procedures for the Planning and Zoning Board to
assist residents and businesses for expeditious zoning approvals. A new automated building permit process is
anticipated during the subsequent fiscal year. These programs will streamline customer service efforts along with
providing comprehensive resource data for financial and operational reports. The Village has also initiated
revision efforts for the Village code. Critical components of the existing code that are designed to retain property
values will be addressed, ensuring that construction standards are exceeded.
During a recent analysis of leading economic indicators for a residential - community such as Miami Shores
Village, staff found a continued interest in the Village as a favorable living community. The quantity and types
of building permits indicate that property owners continue to invest considerable dollars into their homes. During
the last year, Building Department staff reports that more than 65% of the total number of permits issued related
to home renovations. These permits include painting, room additions, along with kitchen and bathroom
rehabilitation. Due to its proximity to downtown Miami, the Village remains one of the last upscale communities
in the northeast section of the County that offers quality single - family homes at affordable to higher cost range.
While adjacent communities also reflect increased demands for residency, they do not offer the size of the homes
available as in Miami Shores.
The Administration has also implemented increased code enforcement efforts throughout the Village. These
programs focus attention on overall home maintenance and requires homeowners to keep their homes and
businesses presentable and in compliance with Village codes and regulations. Strong code enforcement and
building programs have a direct correlation into the desirability of the community and, accordingly, significantly
increased home values and equity. The Village will continue to provide these types of services that will
demonstrate the leadership commitment of the Village.
OTHER INFORMATION: The State of Florida requires municipalities to prepare annual audited financial
reports. Prepared by the Village's external auditors, the supplemental information contained in the report provides
the all mandatory financial statements, accounts and supporting schedules. The Village uses the services of the
certified public accounting firm of Rachlin Cohen & Holtz, LLP. Rachlin is recognized as one of the foremost
accounting firms in the tri- county region and has provided invaluable service to the Village during the preparation
of this and prior years' audits and other financial services. The firm focuses their attention to the details of
managing small to mid -size governments and adheres to the strictest of accounting and professional standards.
Preparing the report in compliance with Generally Accepted Accounting Principles and Generally .Accepted
Auditing Standards, the Firm made technical comments that have improved the financial reporting and enhanced
the productivity levels of the Village's work force.
Finally, the Village Administration has already introduced several new programs and procedures to strengthen
the financial condition and reporting practices. An integral component to this action is the plan to replace the
Village's 17 year old computer program system. To continue to meet the new reporting requirements, including
the GASB 34 regulations, a new system should be operational by Fall, 2001. The system will allow expanded
programs to residents and improve service delivery in all aspects of the Village.
Acknowledgments. The preparation of the Comprehensive Annual Financial Report (CAFR) demonstrates the
professional commitment of the Finance Department staff including Mark A. Malatak and Carolyn Modeste. We
would also mention that this report could not have been prepared without the cooperative efforts of all of the
Village departments that provided critical information and assistance with the compilation and collation of the
information contained in the report.
We now enter the new millennium in a fiscally sound condition. We see tremendous opportunities to introduce
new technologies that will: 1) enhance governmental services provided to residents, businesses and visitors to
the Village; 2) ensure safe and secure neighborhoods through the efforts of our professional police department;
3) expand the information available to residents through the Internet and other communication mechanisms; and,
4) expand the recreational programs, specifically, through the opening of the new aquatics facility, the Village
will have the best program that sets the standards for other municipalities to emulate.
FY 1999- 2000Audit Transmittal Letter December 15, 2000
In closing, Nve reiterate our commitment to provide the highest level of service at the most cost effective manner
to our residents and businesses. Our #one priority is the resident and we pledge our dedication to quality and
service excellence. We thank you for your time in reviewing this document and will aggressively seek to improve
the quality of services delivered to you and the residents of Miami Shores Village.
Respectfully submitted,
MIAMI SHORES VILLAGE
THOMAS J. BENTON
Chief Executive Officer
Village Manager
T.TB:MAM:
Attachments
Lao
MARK A. MALATAK, C.P. .
Chief Financial Officer
Finance/Budget Director
VILLAGE CLERK
BARBARA A. FUGAZZI
EXECUTIVE ASST.
TO VILLAGE MANAGER
BARBARA A. FUGAZZI
PUBLIC \VORKS DIRECTOR
DAVID G. TRAILL
MIAMI SHORES VILLAGE, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2000
MAYOR & COUNCIL
MAYOR MARK S. ULMER
VICE MAYOR ROBERT C. BLUM
COUNCILWOMAN MARY ROSS AGOSTA
COUNCILMAN WILLIAM A. DAVIS
COUNCILMAN STEPHEN K. LOFFREDO
VILLAGE MANAGER
THOMAS J. BENTON
FINANCE DIRECTOR
MARK A. MALATAK, CPA
RECREATION
DIRECTOR
JERRY ESTEP
BUILDING DIRECTOR
FRANCIS J. LUBIEN
PLANNING & ZONING / CODE
ENFORCEMENT DIRECTOR
ALLYN BERG
-viii-
VILLAGE ATTORNEY
RICHARD SARAFAN, ESQ.
CHIEF OF POLICE
RICHARD H. MASTEN
DIRECTOR OF
LIBRARY SERVICES
ELIZABETH ESPER
MIAMI SHORES VILLAGE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 2000
MAYOR
Mark S. Ulmer
VILLAGE COUNCIL
Robert C. Blum - Vice Mayor
Mary Ross Agosta
William A. Davis
Stephen K. Loffredo
VILLAGE MANAGER
Thomas J. Benton
CHIEF FINANCIAL OFFICER
Mark A. Malatak, CPA
VILLAGE AUDITORS
Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
-ix-
i
j`® Rachlin Cohen 8: Holtz LLP
® Certified Public Accountants & Consultants
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
We have audited the accompanying general purpose financial statements of Miami Shores Village, Florida (the
Village), as of September 30, 2000 and for the year then ended as listed in the table of contents. 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 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 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 general purpose 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 Miami Shores Village, Florida as of September 30, 2000, and the results of its operations and
cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting
principles.
In accordance with Government Auditing Standards, we have also issued a report dated December 15, 2000 on
our consideration of the Village's internal control over financial reporting and our tests of its compliance with
certain laws, regulations and contracts. That report is an integral part of m audit performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in considering the results of our
audit.
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 and the required supplementary information on pages 26 and 27 are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements of the Village. Such
infh ntinn has been subjected to the auditing procedures annlied in the audit of the general nurnose 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.
The information shown in the statistical section listed in the table of contents has not been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we express
no opinion thereon.
Miami, Florida
December 15, 2000
-I-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 303 -377 -4225 • Fax 305 -377 -8331
Offices in Miami @ Ft. Lauderdale • Boca Raton @ West Palm Beach • Stuart
-- - -- - - - www.rchcpa.com -- -- -- -
Member of Summit International Associates, Inc. with offices in principal cities throughout the world
Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountant,
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MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
See notes to general purpose financial statements.
-4-
Governmental
Fund Tyes
Fiduciary
Fund Tye
Totals
Special
Capital
Debt
Expendable
(Memorandum
Only)
General
Revenue
Projects
Service
Tint
ZQU
1999
Revenues:
Taxes and fees
S 3,092,104
S 1,732,Q41
S -
$ 221,521
$ -
$ 5,045,666
S 4,889,432
Licenses and permits
292,917
-
-
-
-
292,917
231,674
Intergovernmental revenues
910,633
269,426
-
-
1,180,059
4,214,472
Charges for services
492,005
-
-
-
492,005
2,145,903
Fines and forfeitures
258,611
-
-
20,649
279,260
145,626
Contributions
-
-
-
-
5,889
5,889
8,062
Miscellaneous revenue
389,088
-
-
-
-
389,088
260,978
Interest
228,906
8,945
200,230
25,970
26,847
490,898
199,904
Confiscated property
-
-
-
-
108,313
108,313
205,676
Total revenues
5,664,264
2,010,412
200,230
247,491
161,698
8,284,095
12,301,727
Expenditures:
Current:
General government
841,917
410,029
-
7,979
-
1,259,925
940,735
Public safety
3,168,647
-
233,449
-
162,019
3,564,115
3,210,118
Public services
1,063,412
-
2,165,498
-
-
3,228,910
2,804,411
Culture /recreation
1,662,944
-
-
-
3,888
1,666,832
1,547,430
Capital outlay
177,725
159,028
-
-
-
336,753
183,803
Debt service:
Principal
16,093
-
15,308
55,000
-
86,401
37,439
Interest
3,398
-
4,421
75,294
-
839113
779923
Total expenditures
6,934,136
569,057
2,418,676
138,273
165,907
10,226,049
8,801,859
Excess (deficiency) of revenues
over expenditures
(1,269,872)
1,441,355
(2,218,446)
109,218
(4,209)
(1,941,954)
3,499,868
Other financing sources (uses):
Operating transfers in
1,770,292
-
60,000
-
34,765
1,865,057
1,645,038
Or)eratine transfers out
09 C%,) )R t)
--- +-- ,
n zm zcd)
., ���
-
-
-
(1,518,63.1)
1,378,518
Capital loan proceeds
-
-
-
-
-
-
234,328
Total other financing
sources (uses)
1,545,009
(1,303,354)
60,000
-
34,765
336,420
3,257,884
Excess (deficiency) of revenues
over expenditures and other
financing sources (uses)
275,137
138,001
(2,158,446)
109,218
30,556
(1,605,534)
3,734,196
Fund balances, beginning
2,568,945
344,533
3,632,370
(65,659)
515,187
6,995,376
3,411,180
Equity transfers in (out)
-
-
-
-
-
-
(150,000)
Fund balances, ending
S 2,844,082
S 482,534
$ 1,473,924 $
43,559
S 545,743
$ 5,3899842
S 6,995,376
See notes to general purpose financial statements.
-4-
MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
Cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation
Gain on sale of land
Changes in operating assets and liabilities:
(Increase) decrease in miscellaneous receivables
Increase in due from other funds
Increase in inventory
Increase in prepaid expenses
Increase (decrease) in accounts payable
and accrued liabilities
Increase (decrease) in estimated insurance claims
Increase in due to other funds
Increase in deferred revenue
Net cash provided by (used in) operating activities
Cash flows from non - capital financing activities:
Operating transfers in (out)
Cash flows from capital and related financing activities:
Capital improvements
Cash flows from investing activities:
Proceeds from sale of land
Interest received
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
Internal
Enterprise Funds Service
Self -
Stormwater Sanitation Insurance
Totals
(Memorandum Only)
2_M im
$ 19,096 $ 358,939 $ (6,145) $ 371,890 $ 82,804
7,683
59,101
-
66,784
7,683
-
(1,984)
-
(1,984)
-
1,213
(526,667)
-
(525,454)
3,515
-
-
(275,696)
(275,696)
-
-
(33,186)
-
(33,186)
-
_
-
(19,725)
(19,725)
-
2,319
55,536
6,414
64,269
(16,503)
-
-
(130,949)
(130,949)
4,979
-
87,470
276,787
364,257
-
-
559,483
-
559,483
-
30,311
558,692
(149,314)
439,689
82,478
- (441,938) 30,000 (411,938) 150,000
- (56,056) - (56,056) -
- 31,984 - 31,984
- i,9 °01 - 1,981 5,603
- 33,965 - 33,965 5,603
30,311 94,663 (119,314) 5,660 238,081
243,029 - 738,273 981,302 743,221
$ 273,340 $ 94,663 $ 618,959 $ 986,962 S 981,302
See notes to general purpose financial statements.
-7-
MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUND
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
See notes to general purpose financial statements.
-8-
2000
1999
ADDITIONS
Contributions:
Employer
$ 199,535
$ 190,036
State
27,606
28,907
Employees
247,854
199.878
Total contributions
474.995
418.821
Investment income:
Investment earnings
1,167,980
1,872,316
Less investment expenses
82,141
114.060
Net investment income
1,085,839
1.758.256
Other income
18,008
-
Total additions
1,578.842
2,177,077
DEDUCTIONS
Benefit payments and refunds
615,406
605,004
Administrative and general
22,183
18,774
Total deductions
637,589
623,778
Net increase
941,253
1,553,299
Net assets held in trust for pension benefits:
Beginning of year
17,311.460
15,758,161
End of year
$ 18,252,713
$ 17,311.460
See notes to general purpose financial statements.
-8-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Miami Shores Village, Florida (the Village) was incorporated in 1963 and is a political subdivision
of the State of Florida located in northwestern Miami -Dade County. The Village operates under a
Council - Manager form of government, with the legislative function being vested in a five- member
council. The Village Council is governed by the Village Charter and by state and local laws and
regulations. The Village Council is responsible for establishment and adoption of policy. The
Village provides the following full range of municipal services authorized by its charter: public
safety, highways and streets, sanitation, health and social services, culture, recreation, public
improvements, planning and zoning, water and sewer and general administrative services.
The accounting policies of the Village conform to generally accepted accounting principles (GAAP)
as applicable to governments. The following is a summary of the more significant policies:
1. The Reporting Entity
The financial statements were prepared in accordance with GASB Statement No. 14, The
Financial Reporting Entity, which establishes standards for defining and reporting on the
financial reporting entity. The definition of the financial reporting entity is based upon the
concept that elected officials are accountable to their constituents for their actions. One of the
objectives of financial reporting is to provide users of financial statements with a basis for
assessing the accountability of the elected officials. The financial reporting entity consists of
the primary government, organizations for which the primary government is financially
accountable, and other organizations for which the nature and significance of their relationship
with the primary government are such that exclusion would cause the reporting entity's
financial statements to be misleading or incomplete. The Village is financially accountable
for a component unit if it appoints a voting majority of the organization's governing board and
it is able to impose its will on that organization or there is a potential for the organization to
provide specific financial benefits to, or impose specific financial burdens on the Village.
The Village does not have any component units that meet the definition disclosed above.
2. Basis of Presentation
The accounts of the Village are organized and operated on the basis of funds and account
groups. A fund is an independent fiscal and accounting entity with a self - balancing set of
accounts. Fund accounting segregates funds according to their intended purpose and is used to
aid management in demonstrating compliance with finance related legal and contractual
provisions. The minimum number of funds is maintained consistent with legal and managerial
requirements. Account groups are a reporting device to account for certain assets and
liabilities of the governmental funds not recorded directly in those funds.
The Village has the following fund types and account groups:
Governmental Fund Types
The general fund is the Village's primary operating fund. It accounts for all financial
resources of the Village, except those required to be accounted for in another fund. Resources
In
MIAAZI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2. Basis of Presentation (Continued)
Governmental Fund Types (Continued)
are derived primarily from property taxes, franchise fees and utility taxes, charges for services
and intergovernmental revenues. Expenditures are incurred to provide general government,
public safety, public works and community services.
The special revenue funds account for revenue sources that are legally restricted to expenditures
for specific purposes (not including major capital projects). The Village has four special
revenue funds: Excise Tax Fund, Local Option Gas Tax Fund, Grant Fund and Hurricane Fund.
The debt service fund accounts for the servicing of general long -term debt not being financed
by proprietary funds.
The capital projects funds are used to account for financial resources to be used for the
acquisition of equipment and construction of capital facilities. The Village maintains two
capital projects funds: Capital Improvement Fund and the 1999 G.O. Bond Fund.
Proprietary Fund Types
The enterprise fund is used to account for operations that are financed and operated in a manner
similar to a commercial enterprise, where the intent of the governing body is that the costs of
providing goods or services to the general public on a continuing basis be financed or recovered
primarily through user charges, or where the governing body had decided that periodic
determination of the revenue earned, expenses incurred, and/or net income is appropriate for
capital maintenance, public policy, management control, accountability, or other purposes. The
Village has two enterprise funds, the Stormwater Utility Fund and the Sanitation 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 Forfeiture Trust).
The pension trust fund is accounted for in essentially the same manner as proprietary funds,
using the same measurement focus and basis of accounting. The Village has one pension plan.
Account Groups
The general fixed assets account group is used to account for fixed assets not accounted for
in proprietary funds.
-10-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2. Basis of Presentation (Continued)
Account Groups (Continued)
The general long -term debt account group is used to account for general long -term obligations
and compensated absences that are not specific liabilities of proprietary or trust funds.
3. Measurement Focus
The accounting and reporting treatment applied to a fund is determined by its measurement
focus. All governmental funds are accounted for on a spending of current financial resources
measurement focus. This means that only current assets and current liabilities are generally
included on their balance sheets. Their reported fund balance (net current assets) is considered
a measure of "available spendable resources ". The operating statements for governmental
funds present increases (revenue and other financing sources) and decreases (expenditures and
other financing uses) in net current assets.
The proprietary fund and pension trust fund are accounted for on a flow of economic resources
measurement focus and capital maintenance measurement focus. With this measurement
focus, all assets and all liabilities associated with the operation of these funds are included on
their balance sheet. Fund equity (net total assets) is segregated into contributed capital and
retained earnings components. Proprietary fund type operating statements present increases
(revenue) and decreases (expenses) in net total assets.
4. Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and 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. Their revenues are recognized in the period in which they become susceptible to
accrual, i.e., when they become both measurable and available as expendable financial resources
to pay liabilities of the current period. Ad valorem taxes and charges for services are susceptible
to accrual when collected in the current year or within 60 days subsequent to year -end; provided
that amounts received pertain to liabilities through the fiscal year just ended.
Intergovernmental revenues, franchise fees, sanitation fees and utility service taxes are
recorded in accordance with their legal or contractual requirements as earned. Interest is
recorded when earned. Licenses and permits, charges for services, fines and forfeitures, and
other revenues applicable to the current period are recorded as revenue when received in cash
because they are generally not measurable until actually received. License and permit revenue
collected in advance of periods to which they relate are recorded as deferred revenue.
Expenditures are generally recognized under the accrual basis of accounting when the related
fund liability is incurred.. Exceptions to this general rule include principal and interest on
general long -term debt, which are recognized when due where funds are not specifically
reserved for such purpose.
-11-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
4. Basis of Accounting (Continued)
The reporting practices of the Proprietary Fund Types and the Pension Trust Funds closely
parallel comparable commercial financial reporting. Both recognize revenue when earned and
expenses when incurred (the accrual basis) including, in the case of the Enterprise Fund,
depreciation on its exhaustible fixed assets. Earned, but unbilled service receivables have
been accrued as revenue in the Enterprise Fund. The Village has elected to follow all GASB
pronouncements and all FASB pronouncements issued on or before November 30, 1989,
except for those that contradict a GASB pronouncement.
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 (2A -7 Pool) is reported at its fair value of its position
in the pool, which is the same as the value of the pool shares. The investments in the pension
trust fund are reported at fair value.
6. Inventories
Inventories in the enterprise fund 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. General 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. Assets related to the golf and country club represent the contractually required
capital investments made annually by the operator, PCM III. Depreciation is not required and
has not been provided on general fixed assets.
-12-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FFNTANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
8. Proprietary Fund Fixed Assets
Fixed assets are stated at cost or, if donated, at fair market value at the date of donation.
Expenses, which materially extend the useful life of existing assets, are capitalized. The cost
of property sold or retired, together with the related accumulated depreciation, is removed
from the appropriate accounts and any resulting gain or loss is included in net income.
Depreciation has been provided over the estimated useful lives of the related assets using the
straight -line method. The estimated useful lives are as follows:
Estimated Useful
Lives (Years)
Drainage improvements
Sanitation equipment
9. Compensated Absences
40
10
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 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 in the appropriate fund. The remaining accumulated vacation leave balance is
accounted for in the general long -term debt account group.
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. i ne remaining accumulated sick
leave balance is accounted for in the general long -term debt account group.
10. 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.
11. 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.
-13-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
12. 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.
13. 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 indicate 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.
14. 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, 2000 was 8.3627 for general operating and .6065 for debt service.
The Village Council prior to October 1 each year establishes the tax levy of the Village, and
the County Property Appraiser incorporates the millage into the total tax levy, which includes
Miami -Dade County, Miami -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
SEE
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
14. Property Taxes (Continued)
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 four
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 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
the properties on April 1st 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.
15. Budgets and Budgetary Accounting
Annual appropriated budgets are adopted for the general fund, three of the four special
revenue funds, and the capital projects funds. The budget allocations among the various
organizational units are included in the Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual.
The Village follows these procedures in establishing the budgetary data reflected in the
financial statements.
a) The Village Manager submits to the Council a proposed operating budget for the ensuing
fiscal year. The operating budget includes proposed revenues and expenditures with an
explanation regarding each expenditure that is not of a routine nature.
b) Public hearings are conducted to obtain taxpayer comments.
c) Prior to October 1, the budget is legally enacted through passage of a Village Council
resolution.
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 2000.
e) Formal budgetary integration is employed as a management control device during the
year for the general fund, certain special revenue funds and capital projects fund.
f) Budgets for the general fund, certain special revenue funds and capital projects funds
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.
-15-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
15. Budgets and Budgetary Accounting (Continued)
h) Unencumbered appropriations lapse at fiscal year end. Unencumbered amounts may
be 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.
16. 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.
17. 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.
18. Reclassifications
Certain balances presented in the general purpose financial statements for September 30, 1999
have been reclassified to conform to September 30, 2000 presentation.
19. Memorandum Only - Total Columns
Total columns on the combined financial 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 nor is such data comparable to a consolidation. Interfund eliminations have not
been made in the aggregation of this data.
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
In addition to insurance provided by the Federal Depository Insurance Corporation, 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 quali ied public depositories to deposit
with the Treasurer or another banking institution eligible collateral. 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 insured or
collateralized with securities held by the entity or its agent in the entity's name.
-16-
NOTE 2
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
DEPOSITS AND INVESTMENTS (Continued)
Investments
The Village is authorized to invest in obligations of the U.S. Treasury, its agencies,
instrumentalities and the Local Government Surplus Trust Fund administered by the State
Board of Administration. The investments follow the investment rules defined in Florida
Statutes Chapter 215. The investment policy defined in the statutes attempts to promote,
through state assistance, the maximization of net interest earnings on invested surplus funds of
local units of governments while limiting the risk to which the funds are exposed.
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.
The Local Government Surplus Funds Trust Fund is governed by Ch. 19 -7 of the Florida
Administrative Code, which identifies the Rules of the State Board of Administration. These
rules provide guidance and establish the general operating procedures for the administration of
the Local Government Surplus Funds Trust Fund. Additionally, the Office of the Auditor
General performs the operational audit of the activities and investments of the State Board of
Administration.
The Local Government Surplus Funds Trust is not a registrant with the Securities sand
Exchange Commission (SEC); however, the Board has adopted operating procedures
consistent with the requirements for a 2a -7 fund.
At September 30, 2000, the Village's investment balances, which are carried at fair value,
were not subject to risk categorization as defined by GASB No. 3 statement, were as follows:
State Board Investment Pool
Common Stock Trust Fund Pool
Bond Trust Fund Pool
Total investments
$ 6,368,772
6,618,817
4,020,144
$17,007,733
A reconciliation of cash and cash equivalents and investments as shown on the combined
balance sheet follows:
Cash and cash equivalents $10,640,806
Cash with fiscal agent 1,420,438
Cash with pension trustee 48,391
Investments 12,987,589
$2.5�097�224
Carrying amount of deposits $8,089,491
Carrying amount of investments 17,007,733
$25,097,224
-17-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 3. RECEIVABLES
The City has receivables arising from various taxes and services provided to its residents. Total
receivables amounted to $619,782.
NOTE 4. DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at September 30, 2000 were as follows:
Fund
General fund
Grant fund
Hurricane fund
1999 General Obligation bond fund
Debt service fund
Sanitation fund
Self insurance fund
General employee pension fund
NOTE 5. FIXED ASSETS
Changes in general fixed assets during the year are as follows:
Land
Buildings
Improvements other than buildings
Equipment
Construction in progress
Total
Receivables Payables
$455,973
$188,226
-
16,241
-
69,401
56,225
27,319
-
121,884
275,696
276,787
-
58,561
-
566
$787,894
$787,894
Balance Balance
September 30, September 30,
1999 Additions Deletions 2000
$ 718,531 $ -
3,999,679 21,531
2,831,221 201,572
4 77R 57R 387,654
1,940,771
$12,328,009 $2 55
$ - $ 718,531
- 4,021,210
- 3,032,793
927,103 4,239, t 29
1,940,771
$927,103 $13,952.434
Depreciation is not required and has not been provided on general fixed assets.
The following is a summary of proprietary fund type fixed assets:
Enterprise Funds
September 30,
2000 1999
Drainage improvements $307,322
$307,322
Sanitation equipment 576,480
-
883,802
307,322
Less accumulated depreciation 248,067
7,683
$635.067
$299.639
-18-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. LONG -TERM DEBT
a. Summary of Long -Term Debt
Long -term debt at September 30, 2000 was comprised of the following:
1999 General Obligation bonds issued via the Florida Municipal Loan
Council. Principal is due annually over 30 years at various amounts,
commencing April 1, 2000 and ending April 1, 2029. The bonds bear interest
at variable rates, 3.2% as of September 30, 2000 and are payable semi-
annually commencing October 1, 1999. $3,145,000
Unsecured revenue note payable to a bank; principal and interest due in
quarterly payments of $20,000. Note bears interest at 4.99% per annum, due
July 1, 2006. 460,000
Revenue note payable to a bank; principal and interest due in quarterly
payments of $9,822. Note bears interest at 4.56% per annum, due October 15,
2005. The note is collateralized by certain equipment. 175,234
Capital lease financed through an installment note; principal and interest due
in quarterly payments of $2,398. Note bears interest at 5.59% per annum, due
July 5, 2001. The note is unsecured and is payable out of general fund
revenues. 9,360
3,789,594
Accrued vacation and sick leave 418,805
Workers' compensation claims payable 386,954
$4.595.353
Changes in general long -term debt during the year are as follows:
-19-
Balance
Balance
September 30,
September 30,
1999
Additions
Reductions
2000
General obligation bond payable
$3,200,000
$ -
$ 55,000
$3,145,000
Revenue note payable
540,000
-
80,000
460,000
Revenue note payable
205,276
-
30,042
175,234
Capital lease obligations
18,209
-
8,849
9,360
Subtotal
3,963,485
-
173,891
3,789,594
Accrued vacation and sick leave
418,051
339,793
339,042
418,805
Workers' compensation claims
136,889
252,500
2,435
386,954
Total
$4,518425
$651,434
$433,127
$4,595.353
-19-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. LONG -TERM DEBT (Continued)
b. Summary of Future Debt Service Requirements
The annual debt service requirements to maturity for all long -term debt are as follows:
NOTE 7. COMMITMENTS AND CONTINGENCIES
a. Legal Matters
Interest
$ 177,039
169,314
161,584
153,752
147,193
2.078.980
$2.587.862
Total
$ 350,896
345,013
336,468
330,254
339,845
4.893.980
$6.677.456
The Village has several 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.
b. Workers' Compensation Claims
The Village has a commitment to Miami -Dade County for a prior workers compensation claim
for $151,986 as of September 30, 2000. The current portion of this claim is $17,442, which is
recorded in the general fund. The long -term portion of $134,454 is accounted for in the
general long -term debt account group. The Village makes annual payments to Miami -Dade
County Risk Management on a reimbursable basis.
c. 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.
d. 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 adverse effect on the Village's financial
condition.
-20-
Principal
Fiscal year ending September 30:
2001
$ 173,867
2002
175,699
2003
174,884
2004
176,502
2005
183,652
Thereafter
2,905,000
$3.789.594
NOTE 7. COMMITMENTS AND CONTINGENCIES
a. Legal Matters
Interest
$ 177,039
169,314
161,584
153,752
147,193
2.078.980
$2.587.862
Total
$ 350,896
345,013
336,468
330,254
339,845
4.893.980
$6.677.456
The Village has several 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.
b. Workers' Compensation Claims
The Village has a commitment to Miami -Dade County for a prior workers compensation claim
for $151,986 as of September 30, 2000. The current portion of this claim is $17,442, which is
recorded in the general fund. The long -term portion of $134,454 is accounted for in the
general long -term debt account group. The Village makes annual payments to Miami -Dade
County Risk Management on a reimbursable basis.
c. 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.
d. 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 adverse effect on the Village's financial
condition.
-20-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7. COMMITMENTS AND CONTINGENCIES (Continued)
e. Construction Commitments
_m During fiscal year ended September 30, 1999, the Village commenced construction of its new
$3,200,000 aquatic center with the proceeds from $3,200,000 of the general obligation bonds.
At September 30, 2000, approximately $1,259,000 remained to be expended on the project.
The spouse of a Village council member has a non - voting ownership interest in one of the
contractors selected to perform work on the Village's aquatic center. The transaction with this
contractor was entered into at arms- length.
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
(PBA).
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 is suspended.
The employer makes benefit payments 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 fiscal year 2000 employee contribution applied to employers recognized
by the PBA was $4.05 per employee per week, payable by payroll deduction during the year
ended September 30, 2000. Employee and employer contributions are adjusted based on
periodic actuarial review.
-21-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 8. POST - RETIREMENTS BENEFITS (Continued)
Plat 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, 2000, 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 $6,000 including employee contributions. As of September 30, 2000, the
Plan had net assets of approximately $69,000 available for benefits and no liabilities.
NOTE 9. 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 anyone 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:
-22-
2000
1999
Unpaid claims, beginning
$ 722,949
$717,970
Incurred claims (including IBNR's)
93,629
87,649
Claim payments and disbursements
(224,578
(K,6 7 0
Unpaid claims, ending
$ 592.000
$722,949
-22-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 10. EMPLOYEES' RETIREMENT SYSTEM
Basis ofAccounting
`... , 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.
Plait 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, 1999, the date
of the latest actuarial valuation:
General Police
Retirees and beneficiaries receiving benefits 28 10
Terminated plan members entitled to but not yet receiving benefits 3 -
Active plan members 63 30
Total 94 40
6►. E
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 10. EMPLOYEES' RETIREMENT SYSTEM (Continued)
Play: Description (Continued)
Active employees:
Fully- vested
Non - vested
General Police
22 16
41 14
63 30
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.
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.
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.
Members who continue in employment past normal retirement aa-e after usscal year 19908 may
elect to retire and enter the Deferred Retirement Option Plan (DROP). Each participant in the
DROP has an account credited with benefits not received and investments earned.
Participation in the DROP must end no later than 60 months after normal retirement date. The
value of the accounts at September 30, 2000 was $142,376.
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.
-24-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 10. EMPLOYEES' RETIREMENT SYSTEM (Continued)
Annual Pension: Cost and Net Pension Obligation (Continued)
As of October 1, 1997 (date of transition), the Village did not have a net pension obligation.
As of September 30, 1999, the Village had made all of its required annual contributions and
thus did not have a net pension obligation.
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 6% - 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
9/30/98
9/30/99
9/30/00
Three -Year
Annual Pension
Cost (APC)
$253,370
220,408
215,000
-25-
Crend Information
Percentage of Net Pension
APC Contributed Obligation
100% $ -
100 -
100 -
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
Lb-al
a/
U
-a /c
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)
10/1/98
12,753,331
12,112,534
(640,797)
105.3%
3,078,948
(20.8)
10/1/99
13,971,154
12,842,028
(1,129,126)
108.8%
3,343,398
(33.8)
-26-
MIAMI SHORES VILLAGE, FLORIDA
PENSION TRUST FUNDS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Year
Annual
Contribution
Contribution
Ended
Required
from
from
Percentage
September 30.
Contribution
Employer
State
Contributed
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
224,565
28,806
100
1999
218,478
190,036
30,193
101
2000
210,634
199,535
28,907
108
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 10/1/99
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% police; 5.50% general
Cost of living adjustments N/A
*Includes inflation at 4%
-27-
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30. 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
LIABILITIES AND FUND BALANCES
2000
1999
ASSETS
Cash and cash equivalents
$ 2,738,504
$ 2,932,447
Receivables. net
51,692
584,185
Due from other governments:
90;968
631,374
State of Florida
99,071
45.124
Miami -Dade County
-
4.701
Due from other funds
455,973
132.500
Prepaid costs
26,400
9;123
Inventories
30.333
24.229
Total assets
$ 3.401,973
$ 3,732.309
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$ 103,046
$ 247.607
Accrued liabilities
168;901
112.102
Deferred revenues
90;968
631,374
Due to other funds
188;226
114,856
Other liabilities
6,750
57,425
Total liabilities
557;891
1,163,364
Fund balances:
Reserved for:
Encumbrances
136,746
105,452
Prepaid costs
26,400
9;123
Inventories
30 333
24229
Aquatic center
226;595
226,595
Code violations
174,906
174,906
Unreserved:
Designated for future use
1349,102
1.128.640
Designated for emergencies and contingencies
900.000
900;000
Total fund balances
2;844,082
2,568.945
Total liabilities and fund balances
$ 3.401;973
$ 3.732.309
-28-
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
Excess of revenues over expenditures
and other financing sources (uses) 275,137 507,577
Fund balance, beginning 2,568,945 2,313;590
Equity transfers out - (22.222)
Fund balance, ending $ 2,844.082 $ 2_ 56_
-29-
2000
1999
Revenues:
Taxes
$ 3,092,104 $
3,072,144
Licenses and permits
292,917
231,674
Intergovernmental revenues
910,633
942,571
Charges for services
492,005
2,145;903
Fines and forfeitures
258,611
111,930
Miscellaneous revenue
389,088
260;978
Interest
228,906
150.028
Total revenues
5,664.264
6.915.228
Expenditures:
Current:
General government
841,917
894;358
Public safety
3,168;647
3,026,323
Public services
1,063,412
2,143;106
Culture /recreation
1,662;944
1;539;543
Capital outlay
177,725
160,080
Debt service:
Principal
16,093
18;076
Interest
3,398
4.683
Total expenditures
6,934,136
7,786,169
Deficiency of revenues over expenditures
(1,269.872)
(870.941)
Other financing sources (uses):
Operating transfers in
1,770,292
1,511,778
Operating transfers out
(225,283)
(133;260)
Total other financing sources (uses)
1.545,009
1,378,518
Excess of revenues over expenditures
and other financing sources (uses) 275,137 507,577
Fund balance, beginning 2,568,945 2,313;590
Equity transfers out - (22.222)
Fund balance, ending $ 2,844.082 $ 2_ 56_
-29-
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND E%TENDITURES - BUDGET AND ACTUAL
FISCAL PEAR ENDED SEPTEMBER 30, 2000
(\WITH COMPARATIVE TOTALS FOR FISCAL YEAR E-,NTDED SEPTEMBER 30, 1999)
Revenues:
Taxes:
Property taxes, current and delinquent
Licenses and permits:
Business licenses
Building permits
Certificate of reoccupancy
Other licenses and permits
Total licenses and permits
Intergovern mental revenues:
State shared revenues:
Gas tax rebate
Cigarette taxes
State revenue sharing
Beverage licenses
Local government half cent sales tax
Department of transportation (landscape maintenance)
FEMA Grant
Other grants
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:
Rents
Other revenue
Total miscellaneous revenue
Interest
Other financing sources:
Appropriated fund balance
Operating transfers in
Operating transfers out
Total revenues
-30-
Budgetary
Variances Budgetan•
Basis
Favorable Basis
BudE_et Actual
(Unfavorable) Actual
2000
1999
S 3,100,630 S 3,092,104 S (8,526) S 1072.144
82,323
61,434
(20,889)
64,100
161,137
175,073
13,936
127,684
7,500
-
(7,500)
-
48,128
56,410
8,282
39,890
299.088
292,917
(6,171)
231.674
200,736
389,088
188,352
7,500
-
(7,500)
-
12,177
9,359
(2,818)
10,789
282,902
228,658
(54,244)
221,199
1,275
1,057
(218)
972
615,840
598,312
(17,528)
562,571
17,318
17,318
-
21,648
-
3,005
3,005
-
-
-
-
76,185
26,500
25,475
(1,025)
20,293
21,055
27,449
6,394
28,704
-
-
210
984,567
910,633
(73,934)
942.571
158,750
134,361
(24,389)
155,456
17,143
-
(17,143)
1,621,408
5,650
25,843
20,193
22,130
432,765
331,801
(100,964)
346,909
614,308 492,005 (122,303) 2.145,903
185,699
258,611
72,912
111,930
93,209
-
(93,209)
_
278,908
258,611
(20,297)
111,930
150,000
182,864
32,864
153,206
50,736
206,224
155,488
107.772
200,736
389,088
188,352
260,978
270,645
228,906
(41,739)
150,028
342,801 - (342,801)
1,887,789 1,770,292 (117,497)
- (225,283) (225,283)
2,230,590 1,545,009 (685,581) -
S 7,979,472 S 7,209,273 S (770,199) S 6,915,228
(Continued)
AIIA \1I SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EN'PENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(\'WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
Budgetary
Variances
Budgetary
Basis
Favorable
Basis
Budeet
Actual
(Unfavorable)
Actual
2000
1999
Expenditures:
Current:
General government:
Village council:
Personnel services
S 5
S 5
S - S
5
Operating expenses
6,375
3,728
2,647
5,353
6,380
3,733
2,647
5,358
Village attorney:
Operating expenses
159,200
149,348
9,852
148,901
159,200
149,348
9,852
148,901
Village manager:
Personnel services
121,818
115,921
5,897
110,682
Operating expenses
8,306
5,979
2,327
6,322
130,124
121,900
8,224
117,004
Village clerk:
Personnel services
93,125
87,304
5,821
88,781
Operating expenses
29,680
20,463
9,217
11,543
Capital outlay
5,000
5,499
(499)
42820
127,805
113,266
14,539
105,144
Finance:
Personnel services
220,447
233,112
(12,665)
176,052
Operating expenses
83,600
72,287
11,313
64,266
Capital outlay
-
-
-
3,308
304,047
305,399
(1,352)
243,626
Marketing:
Personnel services
-
-
-
31,262
Operating expenses
-
150
(150)
32,510
Capital outlay
-
-
-
490
-
150
(150)
64,262
Other general government:
Non - departmental:
Personnel services
11,320
506
10,814
2,376
Operating expenses
55,590
126,016
(70,426)
193,836
Non - operating expenses
271,000
-
271,000
-
Capital outlay
6,298
1,708
4,590
531
344,208
128,230
215,978
196,743
Human resources:
Personnel services
-
-
Operating expenses
32,000
26,638
5,362
19,844
Capital outlay
-
32,000
26,638
5,362
19,844
Summer Program:
Personnel services
-
460
(460)
2,625
Operating expenses
"
-
460
(460)
2,625
Total general government
1,103,764
849,124
254,640
903,507
(Continued)
-31-
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
Building department
Personnel services
92,244
Budgetary
Variances
Budgetan,
Operating expenses
49,674
Basis
Favorable
Basis
Capital outlay
Budget
Actual
(Unfavorable)
Actual
141,918
2000
3,169
1999
Public safety:
Code enforcement:
1,158,236
208,259
2,164,003
Law enforcement:
Personnel services
90,483
85,043
5,440
Personnel services
$ 2,758,991
$ 2,735,118
$ 23,873
$ 2,545,898
Operating expenses
210,327
190,068
20,259
223,555
Capital outlay
30,730
10,672
20,058
70,182
Non - operating expenses
114,577
-
114,577
-
3,0962686
3,114,625
2;935,858
178,767
2,839,635
Building department
Personnel services
92,244
84,700
7,544
112,996
Operating expenses
49,674
54,049
(4,375)
44,913
Capital outlay
-
94,624
196,236
-
141,918
138,749
3,169
157,909
Total public services
Code enforcement:
1,158,236
208,259
2,164,003
Personnel services
90,483
85,043
5,440
83,470
Operating expenses
21,047
19,669
1,378
15,491
Capital outlay
-
-
-
181
111,530
104,712
111,530
99,142
Total public safety
3.368,073
3,179,319
293,466
3,0962686
Public services:
Public works administration:
Personnel services
274,925
235,703
39,222
215,098
Operating expenses
89,505
59,914
29,591
14,379
Capital outlay
4,672
-
4,672
12,311
369,102
295,617
73,485
2413788
Street maintenance:
Personnel services
130,956
160,159
(29,203)
141,521
Operating expenses
239,889
231,869
8,020
198,992
Capital outlay
290,860
94,624
196,236
81586
661,705
486,652
175,053
349,099
Total public services
Planning and zoning:
1,158,236
208,259
2,164,003
Personnel services
50,255
52,595
(2,340)
655,042
Operating expenses
15,287
9,338
5,949
653,245
Capital outlay
3,744
-
3,744
-
69,286
61,933
7,353
1;308,287
Fleet maintenance:
Personnel services
184,680
190,441
(5,761)
176,285
Operating expenses
81,522
123,393
(41,871)
83,444
Capital outlay
200
200
-
5,100
266,402
314,034
(47,632)
264,829
Total public services
1,366,495
1,158,236
208,259
2,164,003
(Continued)
-32-
MIAMI SHORES VILLAGE, FLORIDA
GENERALFUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
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
Community Development:
Personnel services
Operating expenses
Capital outlay
Total culture /recreation
Debt service:
Principal
Interest
Total debt service
Total expenditures
16,093 (16,093) 18,076
3,398 (3,398) 4,683
19,491 (19,491) 22,759
$ 7,979,472 $ 6,934,136 $ 1,045,336 $ 7,786,169
-33-
Budgetary
Variances
Budgetary
Basis
Favorable
Basis
Budeet
Actual
(Unfavorable)
Actual
2000
1999
$ 309,996
$ 290,775
$ 19,221
$ 258,449
133,524
79,622
53,902
82,773
28,500
5,170
23,330
3,564
472,020
375,567
96,453
344,786
772,528
600,796
171,732
594,976
293,675
249,579
44,096
252,383
62,493
-
62,493
-
12,750
11,093
1,657
67137
1,141,446
861,468
279,978
853,496
105,063
102,077
2,986
98,614
24,795
22,310
2,485
23,502
129,858
124;387
5,471
122,116
200,480
204,133
(3,653)
192,360
28,610
28,723
(113)
36,486
49,600
48,759
841
49,970
278,690
281,615
(2,925)
278,816
81,186
54,130
27,056
-
36,425
30,799
5,626
-
1,515
-
1,515
-
119,126
84,929
34,197
-
2,141,140
1,727,966
413,174
1,599,214
16,093 (16,093) 18,076
3,398 (3,398) 4,683
19,491 (19,491) 22,759
$ 7,979,472 $ 6,934,136 $ 1,045,336 $ 7,786,169
-33-
MIAMI SHORES VILLAGE, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2000
ASSETS
Cash and cash equivalents
Receivables, net
Inventories
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Total liabilities
Fund balances:
Unreserved (deficit)
Total fund balances (deficits)
Total liabilities and fund balances
Local
Option
Excise Gas
Tax Tax Grant Hurricane
Fund Fund Fund Fund
Totals
$ 206,122 $ 411,473 $ - $ 5,000 $ 622,595
39,311 681 - - 39,992
- 1,084 - - 1,084
$ 245,433 $ 413,238 $ - $ 5,000 $ 663,671
$ - $ 2,511 $ 11,897 $
- 81,087
- 16,241
2,511 109,225
$ 14,408
81,087
69,401 85,642
69,401 181,137
245,433
410,727
(109,225) (64,401)
482,534
245,433
410,727
(109,225) (64,401)
482,534
$ 245,433
$ 413,238
$ - $ 5,000
$ 663,671
-34-
MIAMI SHORES VILLAGE, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2000
Revenues:
Franchise fees
Utility taxes
Other taxes
Intergovernmental revenues
Interest
Total revenues
Expenditures:
Operating
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 (deficit), beginning
Fund balances (deficit), ending
Local
Option
Excise Gas
Tax Tax Grant Hurricane
Fund in un in
$ 491,252
990,021 -
- 250,768
- 1,414
1,481,273 252,182
129,036
129,036
Totals
$ - $ 491,252
- 990,021
250,768
84,447 184,979 269,426
7,531 8,945
91,978 184,979 2,010,412
48,590 232,403
410,029
159,028 -
159,028
207,618 232,403
569,057
1,481,273 123,146 (115,640) (47,424) 1,441,355
(1,303,354) - - - (1,303,354)
(1,303,354) - - - (1,303,354)
177,919
123,146
(115,640)
(47,424)
138,001
67,514
287,581
6,415
(16,977)
344,533
$ 245,433
$ 410,727
$ (109,225)
$ (64,401) $
482,534
-35-
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MIAMI SHORES VILLAGE, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
SET
Cash and cash equivalents
Cash with fiscal agent
Bond issue costs
Due from other funds
Other assets
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued interest payable
Due to other funds
Total liabilities
Fund equity:
Reserved for:
Recreation department
Waste department
Unreserved:
Designated for capital outlay
Total fund balances
Total liabilities and fund balances
1999
General
Capital Obligation
Improvement Bond
Fund Fund
Totals
111 •••
$ 299,884 $ 14,444
$ 314,328
$ 504,604
- 1,179,340
1,179,340
3,134,027
- 61,653
61,653
77,267
- 56,225
56,225
-
- 27,319
27,319
967
$ 299,884 $ 1,338,981
$ 1,638,865
$ 3,716,865
$ 3,803 $ 133,819 $
27,319
1 0r11 141 710
137,622 $ 6,761
- 11,294
27,319 66,440
164,941 84,495
294,706 - 294,706 294,706
123,500 - 123,500 123,500
(122,125) 1,177,843 1,055,718 3,214,164
296,081 1,177,843 1,473,924 3,632,370
$ 299,884 $ 1,338,981 $ 1,638,865 $ 3,716,865
-37-
MIAMI SHORES `PILLAGE, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
Other financing sources (uses):
Operating transfers in 60,000 - 60,000 133,260
Capital loan proceeds - - - 234,328
Total other financing sources (uses) 60,000 - 60,000 367,588
Excess (deficiency) of revenues and other
financing sources over expenditures (163,483) (1,994,963) (2,158,446) 2,946,162
Fund balances, beginning 459.564 3,172;806 3,632,370 686.208
Fund balances, ending $ 296,081 $ 1,177,843 $ 1,473,924 $ 3,632.370
-38-
1999
Capital
General
Improvement
Obligation
Totals
Fund
Bond Fund
2000
1999
Revenues:
Intergovernmental revenues
$ -
$ -
$ - $
3,265,000
Interest
24,777
175.453
200,230
31,848
Total revenues
24,777
175,453
200.230
3,296,848
Expenditures:
Current:
Operating
5;442
228,007
233,449
30.025
Capital outlay
223,089
1,942,409
2,165,498
661,305
Debt service:
Principal
15,308
-
15,308
19,363
Interest
4.421
-
4,421
7,581
Total expenditures
248.260
2.170,416
2,418.676
718.274
Excess (deficiency) of revenues
over expenditures
(223,483)
(1,994,963)
(2,218,446)
2,578,574
Other financing sources (uses):
Operating transfers in 60,000 - 60,000 133,260
Capital loan proceeds - - - 234,328
Total other financing sources (uses) 60,000 - 60,000 367,588
Excess (deficiency) of revenues and other
financing sources over expenditures (163,483) (1,994,963) (2,158,446) 2,946,162
Fund balances, beginning 459.564 3,172;806 3,632,370 686.208
Fund balances, ending $ 296,081 $ 1,177,843 $ 1,473,924 $ 3,632.370
-38-
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MIAMI SHORES VILLAGE, FLORIDA
ENTERPRISE FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
SET
Cash and cash equivalents
Receivables, net
Due from other governments
Inventories
Fixed assets
Total assets
LIABILITIES AND EQUITY
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Deferred revenues
Total liabilities
Equity:
Retained earnings
Total liabilities and equity
-40-
Stormwater
Utility Sanitation
Fund Fund
Totals
2000 1999
$ 273,340 $ 94,663 $ 368,003 $ 243,029
- 526,667 526,667 -
51,899 - 51,899 53,112
33,186 33,186 -
291,956 343,111 635,067 299,639
$ 617,195 $ 997,627 $ 1,614,822 $ 595,780
$ 2,750 $ 43,941 $ 46,691 $ 431
- 11,595 11,595 -
- 87,470 87,470 -
- 559,483 559,483 -
2,750 702,489 705,239 431
614,445 295,138 909,583 595,349
$ 617,195 $ 997,627 $ 1,614,822 $ 595,780
MIAMI SHORES VILLAGE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
Stormwater
Utility Sanitation Totals
Fund Fund 2000 1999
Charges for services $ 119,965 $ 1,638,167 $ 1,758,132 $ 126,951
Operating expenses:
Personnel expenses
738
725,059
725,797
-
Contractual services
-
368,417
368,417
-
Administrative and general
74,845
128,635
203,480
36,464
Depreciation
7,683
59,101
66,784
7,683
Total operating expenses
83,266
1,281,212
1,364,478
44,147
595,349
Operating income
36,699
356,955
393,654
82,804
Non - operating income:
Interest income
7,397 1,981
9,378 5,603
Other income
- 1,984
1,984 -
Total non - operating income
7,397 3,965
11,362 5,603
Income before operating transfers
44,096 360,920
405,016 88,407
Operating transfers:
Transfers to other funds
(25,000)
(441,938)
(466,938)
-
Transfers from other funds
-
30,000
30,000
-
Total transfers
(25,000)
(411,938)
(436,938)
-
Net income (loss)
19,096
(51,018)
(31,922)
88,407
Retained earnings, beginning
595,349
-
595,349
356,942
Equity transfer in
-
346,156
346,156
150,000
Retained earnings, ending
$ 614,445 $
295,138 $
909,583
$ 595,349
-41-
MIAMI SHORES VILLAGE, FLORIDA
INTERNAL SERVICE FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
ASSETS 2000 1999
Cash and cash equivalents $ 618,959 $ 738;273
Due from other funds 275,696 -
Land held for sale - 30.000
Other assets 19.725 -
Total assets $ 914.380 $ 768.273
LIABILITIES AND EQUITY
Liabilities:
Accounts payable $ 21,738 $ 15,324
Due to other funds 276,787 -
Estimated insurance claims 592.000 722.949
Total liabilities 890.525 738.273
Equity:
Retained earnings - reserved 23.855 30.000
Total liabilities and equity $ 914,380 $ 7687273
-42-
MIAMI SHORES VILLAGE, FLORIDA
INTERNAL SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
2000 .
Charges for services $ 275,696 $ 477,982
Operating expenses:
Insurance premiums
260,472
412,654
Claims
93,629
87,649
Administrative
84,307
14,265
Total operating expenses
438,408
514,568
Operating loss
(162,712)
(36,586)
Non - operating income:
Interest income
41,402
36,586
Other income
14,647
-
Total non - operating income
56,049
36,586
Loss before operating transfers
(106,663)
-
Operating transfers:
Transfer to other funds
(30,000)
-
Transfers from other funds
130,518
-
100,518
-
Net loss
(6,145)
-
Retained earnings, beginning
30,000
30,000
Retained earnings, ending
$ 23,855
$ 30,000
-43-
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MIAIIII SHORES VILLAGE, FLORIDA
EXPENDABLE TRUST FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1999)
-45-
Law
Brockway
Police
Enforcement
Memorial
General
Insurance
Training
Police
Library
Totals
Trust
Trust
Trust
Forfeiture
Trust
2M
1999
Revenues:
Fines and forfeitures
$ 17,714
$ -
$ 2,935
$ -
$ -
$ 20,649
$ 33,696
Contributions
-
5,889
-
-
-
5,889
8,062
Interest
-
-
-
26,847
-
26,847
18,028
Confiscated property
-
-
-
108,313
-
108,313
205,676
Total revenues
17,714
5,889
2,935
135,160
-
161,698
265,462
Expenditures:
Current:
Public safety
-
-
2,538
159,481
-
162,019
153,770
Culture /recreation
3,888
-
-
-
-
3,888
7,887
Total expenditures
3,888
-
2,538
159,481
-
165,907
161,657
Excess (deficiency) of revenues
over expenditures
13,826
5,889
397
(24,321)
-
(4,209)
103,805
Other financing sources:
Operating transfers in
-
-
-
34,765
-
34,765
-
Total other financing sources
-
-
-
34,765
-
34,765
-
Excess of revenues over
expenditures and other
financing sources
13,826
5,889
397
10,444
-
30,556
103,805
Fund balances, beginning
42,946
63,539
4,045
404,657
-
515,187
411,382
Fund balances, ending
$ 56,772
$ 69,428
$ 4,442
$ 415,101
$ -
$ 545,743
$ 515,187
-45-
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 2000
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1999)
2000 1999
General fixed assets:
Land $ 718.531 $ 718.531
Buildings 4,021,210 3,999,679
Improvements other than buildings 3,032,793 2,831,221
Equipment 4,239,129 4,778,578
Construction in progress 1.940,771 -
Total general fixed assets $ 13,952,434 $ 12,328.009
Investment in general filed assets
General fund
$ 5,051,819
$ 5,788,002
Special revenue fund
4,422,042
4,034,577
Capital projects fund
23,723
23,723
Aqautic Facility
1,940,771
-
Country Club
1,820,517
1,820,517
Gifts and donations
53,283
53,283
Confiscated property
623,002
592,393
Insurance fund
17,277
15,514
Total investment in general fixed assets
$ 13,952.434
$ 12.328.009
-47-
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2000
Function
General government - finance
and administrative
Public safety - police
Public services - public works
Culture /recreation:
Parks and recreation
Library
Aquatic Facility
Country Club
Total culture /recreation
Total general fixed assets
allocated to functions
Improvements
Other than Construction
Land Buildings Buildings Equipment in Progress
$ 1,500 $ 234,263 $
- 1,387,049
71,264 427,545
160,019 $ 448,400 $
36,819 1,550,978
1,900,503 1,111,534
Total
$ 844,182
2,974,846
3,510,846
62,350
1,041,921
495,919
564,003 -
2,164,193
2,500
350,269
47,065
297,245 -
697,079
-
-
-
- 1,940,771
1,940,771
580,917
580,163
392,468
266,969 -
11820,517
645,767
1,972,353
935,452
1,128,217 1,940,771
63622,560
$ 718,531 $ 4,021,210 $ 3,032,793 $ 4,239,129 $ 1,940,771 $ 13,952,434
-48-
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 2000
General government:
Finance and administrative
Public safety - police
Public services - public Nvorks
Culture /recreation:
Parks and recreation
Library
Aquatic Facility
Country Club
Total culture /recreation
Balance Balance
September 30, September 30,
1999 Additions Deletions 2000
$ 668,746 $ 177,053 $ (1,617) $
2,825,254 161,842 (12,250)
4,277,475 146,607 (913,236)
2,102,155
62,038
633,862
63,217
-
1,940,771
1.820.517
-
4,556,534
2,066,026
844,182
2,974,846
3.510.846
- 2,164,193
- 697.079
- 1,940,771
- 1.820.517
6.622.560
Total general fixed assets
allocated to functions $ 12,328,009 $ 2,551,528 $ (927,103) $ 13,952.434
-49-
MIAMI SHORES VILLAGE, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
Includes general fund only (excludes capital outlay).
-50-
Recreation
Fiscal
General
Public
Public
and
Debt
Year
Government
&fety
Works
Culture
Service
Total
1991
$ 1,079,128
$ 2,658,769
$ 1,865,552
$ 1,236,613
$ 348,289
$ 7,188,351
1992
766,732
2,802,608
2;319,763
1,259,271
329,034
7,477.408
1993
829,537
2,931,768
2,073,345
1,305,045
274,308
7,414;003
1994
882,339
2,858,883
2,180,109
1,517,445
475,103
7,913,879
1995
905,890
3,177,645
2,408,825
1,470,847
77,744
8,040,951
1996
858,675
3,637,242
2,517,619
1,946,134
77,744
9,037,414
1997
1,006,853
3,552,639
2,398,900
1,666,977
275,353
8,900,722
1998
1,003,637
3,024,810
2;350,017
1,667,392
34,875
8,080,731
1999
894,358
3;026,323
2,145,106
1,539,543
22,759
7,628,089
2000
841,917
3,168,647
1,241,137
1,662,944
19,491
6,934;136
Includes general fund only (excludes capital outlay).
-50-
INIIAMI SHORES VILLAGE, FLORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Licenses Charges Fires
Fiscal and Inter- for and
Year Taxes Taxes governmental Services Forfeitures Other 1 Total
1991 $ 3,605,607 $ 116;836 $ 885,653 $ 1,553,224 $ 96,444 $ 760,582 $ 7,018,346
1992
3,737;604
133,284
883,719
1,826,078
83,401
1;069,336
7;733,422
1993
4,034,053
161,227
968,227
1,804,167
116,021
988,830
8,072,525
1994
4,044,767
182,425
1,026,376
1,790,393
158,786
786,451
7,989,198
1995
4,151,583
175,278
1,097,505
1,902,751
207,611
772,887
8,307,615
1996
4,226;963
218,768
1,156,703
1,927,433
215,633
484,328
8,229,828
1997
4,285,860
196,806
1,196,306
2,074,061
207,350
368,131
8,328,514
1998
4,525,306
211,459
1,203,077
2,304,259
205,237
370,648
8,819;986
1999
3,072,144
231;674
942,571
2;145;903
111,930
411 ;006
6,915;228
2000
3,092,104
292,917
910;633
492,005
258,611
617,994
5,664;264
Includes general fund only.
(1) Includes interest.
-51-
MIAMI SHORES VILLAGE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Source: Miami Shores Village Finance Department and Miami -Dade County Property Appraisers Office.
-52-
% of
Total
Current
% of
Delinquent
Total
Total Taff
Fiscal
Tax
Tax
Levy
Tax
Tax
Collection
Year
Levv
Collection
Collected
Collections
Collections
to Levv
1991
$ 2,478,450
$ 2,336,552
94.3%
$ 15,443
$ 2,351,995
94.9%
1992
2,556,303
2,430,777
95.1%
33,819
2,464,596
96.4%
1993
2,835,734
2,687,840
94.8%
30,991
2,718,832
95.9%
1994
2,766,898
2,653,211
95.9%
19,871
2,673,082
96.6%
1995
2,936,163
2,766,533
94.2%
22,689
2,789,222
95.0%
1996
2,904,311
2,765,122
95.2%
46,639
2,811,761
96.8%
1997
2,989,650
2,821,922
94.4%
35,579
2,857,501
95.6%
1998
2,986,804
2,985,026
99.9%
47,634
3,032,660
101.5%
1999
3,096,789
3,044,701
98.3%
27,443
3,072,144
99.2%
2000
3,1007630
3,051,598
98.4%
40,506
3,092,104
99.7%
Source: Miami Shores Village Finance Department and Miami -Dade County Property Appraisers Office.
-52-
MIAMI SHORES VILLAGE, FLORIDA
ASSESSED VALUE OF TAXABLE PROPERTIES
LAST TEN FISCAL YEARS
Source: Miami -Dade County Property Appraisers Office.
-53-
Real
Personal
Property
Property
Centrally
Total
Fiscal
Assessed
Assessed
Assessed
Assessed
Year
Value
Value
Value
Value
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
1994
30404,072
14,150,253
498,901
319,513;226
1995
324,627,082
13,757,768
664,077
339,048,927
1996
328,044;932
13,238,273
681,979
341,965,184
1997
327,242,080
14,159,332
663,877
342,065,289
1998
352,803;811
14,849,506
862,792
368,516,109
1999
367,730,418
17,216,418
854,252
385,801,088
2000
390,040,958
16,975,407
894,140
407,910,505
Source: Miami -Dade County Property Appraisers Office.
-53-
MIAMI SHORES VILLAGE, FLORIDA
PROPERTY TAX LEVIES
LAST TEN FISCAL YEARS
Source: Miami -Dade County Property Appraiser.
-54-
Total
Fiscal
County-
Debt
Tai:
Year
Village
Wide
Service
Fire
MDCC
Library
School
State
Levies
1991
7.790
8.118
1.210
2.281
-
0.351
9.001
0.602
29.353
1992
7.990
8.118
1.150
2.281
0.750
0.351
9.104
0.600
30344
1993
9.120
7.305
0.830
2.344
0.750
0351
9.923
0.597
31.220
1994
8.660
7.500
0.808
3.150
0.750
0.351
9.503
0.597
31.319
1995
8.660
6.828
0.789
2.558
0.030
0.329
10.389
0.687
30.270
1996
8.493
6.828
0.829
2.518
-
0.329
10.389
0.687
30.073
1997
8.740
6.469
0.774
2.745
-
0.339
10.366
0.710
30.143
1998
8.740
6.023
0.837
2.869
-
0.334
10.260
0.644
29.707
1999
8.740
-
0.607
2.752
-
-
9.744
0.641
22.484
2000
8.363
6.403
0.515
2.752
-
-
9.617
0.738
28.388
Source: Miami -Dade County Property Appraiser.
-54-
Jurisdiction
MIAMI SHORES VILLAGE, FLORIDA
DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2000
Net
Debt
Outstanding
Percent
Applicable
to Name of
Government
Amount
Applicable
to Name of
Government
Miami Shores Village, Florida
$ 3,145,000
100.00%
$ 3,145,000
Miami -Dade County, Florida
305,014,982
0.42%
1,282,105
Miami -Dade County Public Schools
1,440,362,621
0.42%
6,054,442
Sources:
(1) Miami Shores Village, Florida - Finance Department
(2) Miami -Dade County Schools - Finance Department
(3) Miami -Dade County, Finance Department - Cash Management Division and the Office of
Management Budget.
-55-
MIAMI SHORES VILLAGE, FLORIDA
DEMOGRAPHIC INFORMATION AND STATISTICS
LAST TEN FISCAL YEARS
Sources:
University of Florida, Gainesville, Florida - Florida Bureau of Economic and Business Research
State of Florida, Tallahassee, Florida - Florida Department of Labor & Security
Miami -Dade County Public Schools - Finance Department, Budget & Planning Division
-56-
Per Capital Personal
Income
Unemployment
Rate
Miami-
State
Miami-
State
Fiscal
Village
Median
Miami
Dade
of
Dade
of
yI
Population
A=
Shores
County
Florida
Nationwide
County
Florida
Nationwide
1991
10,084
34.8
$ 17,963
$ 18,252
$ 18,988
$ 19,091
6.7
5.9
5.5
1992
10,097
35.7
21,428
18,800
19,557
19,665
8.7
7.3
6.7
1993
10,125
36.8
18,252
19,364
20,144
20,225
8.6
6.8
7.3
1994
10,125
36.2
21,452
20,058
21,777
22,044
8.0
7.2
7.0
1995
10,125
36.2
20,359
21,058
23,031
23,196
7.9
6.9
6.8
1996
10,147
36.9
19,266
22,370
24,198
24,436
7.7
3.2
4.1
1997
10,137
38.7
19,459
22,392
24,234
24,680
6.5
4.2
4.6
1998
10,142
40.7
19,556
22,504
24,355
24,924
6.5
4.3
4.7
1999
10,139
39.9
19,947
22,954
24,843
25,171
6.3
4.3
4.9
2000
10,129
39.7
27,926
22,840
24,097
25,422
5.1
4.5
3.8
Sources:
University of Florida, Gainesville, Florida - Florida Bureau of Economic and Business Research
State of Florida, Tallahassee, Florida - Florida Department of Labor & Security
Miami -Dade County Public Schools - Finance Department, Budget & Planning Division
-56-
MIAMI SHORES VILLAGE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
Construction Value Property Values (2)
Fiscal Property Bank
Year Values Commercial Residential Deposits (1) Commercial Residential
1991 $ 318,157,900 $ 1,395,011 $ 3,027,508 $ 11,877,335 $ 36,142,737 $ 2821015,163
1992
319,937,812
1,303,199
3,116,805
11,020,361
32,953,954
286,983,858
1993
315,447,217
1,439,194
6,317;638
10,425,099
31,544,721
283,902,496
1994
319,513,226
7,682,079
4,697,261
12,337,712
30,586,368
288,926,858
1995
339,048,927
1,881,706
5,152,751
10,876,146
33,902,278
305,146,649
1996
341,965,184
4,196,947
4,958,956
11,296,602
30,816,273
311,148,911
1997
342,065,289
1,622,916
3,934,603
10,524,759
30;594,928
311,470,361
1998
368,516,109
823,366
4;938;015
10,737,507
31,830,638
336,685,471
1999
385,801,088
893,352
5,555,267
15,025,296
33,660,694
352,140,394
2000
407,910,505
2,683,853
3,888,687
17,366,270
33,885,496
374,028,009
Sources:
(1) Municipal Bank Deposit Records
(2) Estimated Actual Values
-57-
MIAAZI SHORES VILLAGE, FLORIDA
MISCELLANEOUS INFORMATION
LAST TEN FISCAL YEARS
Date of incorporation
January 1, 1932
Form of government
Council /Manager
Population as of September 30, 2000
10,129
Size (of Village Area)
2.5 square miles
Total street miles
40.0
Number of streetlights
1,038
Fire protection (provided by Miami -Dade County):
71
Number of county- operated stations
I
Number of firefighters including officers
7
Police protection:
Number of stations
1
Number of police officers (all ranks /staff)
43
Education:
5
University:
I
Number of classrooms
104
Number of academicians
564
Number of students
6,154
Elementary school:
I
Number of classrooms
71
Number of academicians
105
Number of students
2101
Pre - school and centers:
Number of classrooms
20
Number of academicians
40
Number of students
308
Recreation and cultural activities:
Number of village -owned parks
5
Number of libraries
I
Number of volumes as of September 30, 12000
48,645
Number of public swimming facilities
1
Number of recreation facilities
I
Number of public golf courses
I
Village employment:
Number of full -time employees
212
Number of part-time and seasonal employees
214
Other information:
Number of new building/home constructions
1
-58-
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2000
-59-
Assessed
Percent
Value
of Total
for
Village -Wide
Taxpayer
Property Location
1999
Assessment
Boris Moroz & Phil Glassman
Shores Square
$ 3,208,068
0.79%
9325 Park Drive, Miami Shores
Includes Burger King and Eckerds
Northern Trust Bank of Florida
Shores Center, Biscayne Boulevard
2,900,000
0.71%
Tropical Chevrolet, Inc.
8800 Block - Biscayne Boulevard
2,740,316
0.67%
Sheila McDonald
11 unit residential complex
1,395,105
0.34%
George Bennett
9500 block of N.E. 2nd Avenue
1,349,566
0.73%
Commercial and personal properties
Bank of America, N.A.
9400 block - 2nd Avenue
1,267,122
0.73%
9100 block - Biscayne Boulevard
Konover Properties, Inc.
Shores Cinema
1,022,950
0.25%
9800 block of N.E. 2nd Avenue
Thomas and Sandra Chaille
1600 N.E. 103rd Street
950,476
0.23%
Private residence
Henry Everett
9600 block of N.E. 2nd Avenue
950,000
0.23%
Richard and Gertrude Blum
1430 N.E. 101 st Street
836,000
0.20%
-59-
MIAMI SHORES VILLAGE, FLORIDA
TEN LARGEST PUBLIC AND PRIVATE EMPLOYERS
LOCATED IN MIAMI -DADE COUNTY, FLORIDA
SEPTEMBER 30, 2000
,.. Ten Largest Public Employers
Ten Largest Private Employers
Miami -Dade County Public School
33,658
American Airlines
9,473
Miami -Dade County, Florida
28,000
University of Miami
7,725
State of Florida
17,700
BellSouth
7,111
United States Government
17,600
Federated Department Stores
4,105
Jackson Memorial Hospital
7,216
Mt. Sinai Medical Center
4,728
Parkway Regional Hospital
4,448
Florida Power & Light (FPL)
3,570
City of Miami, Florida
3,189
Baptist Health Care Systems
3,275
Florida International University
2,775
Publix Supermarkets
3,250
V.A. Medical Center
2,610
Winn -Dixie Supermarkets
2,500
City of Miami Beach, Florida
2,210
Humana Health Care
2,000
Source: The Beacon Council - Research Department
1t1III
I
®, Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
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 general purpose financial statements of Miami Shores Village, Florida (the Village), as
of September 30, 2000 and for the year then ended and have issued our report thereon dated December 15,
2000. 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 Village's general purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts and grants, noncompliance 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 noncompliance 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
general purpose 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 general purpose 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 we
consider to be material weaknesses.
-61-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305 - 377 -4228 • Fax 305 -377 -8331
Offices in: Miami , Ft. Lauderdale • Boca Raton • West Palm Beach a Stuart
- -- -- www.rchcpa.com - — - -
Member of Summit International Associates, Inc. with offices in principal cities throughout the icorld
Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants
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 that we have
reported to management in the accompanying schedule of findings.
This report is intended solely for the information and use of the Mayor, Village Council, management,
and applicable state agencies and is not intended to be and should not be used by anyone other than those
specified parties. However, this report is a matter of public record and its distribution is not limited.
Miami, Florida
December 15, 2000
-62-
°1 Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
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 general purpose financial statements of Miami Shores Village, Florida (the Village) as
of September 30, 2000 and for the year then ended and have issued our report thereon dated December 15,
2000. We conducted our audit in accordance with generally accepted auditing standards and the standards
applicable for financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
In connection with our audit of the general purpose financial statements of the Village for the year ended
September 30, 2000, 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):
No inaccuracies, shortages, defalcations, fraud and violations of laws, rules, regulations and
contractual provisions were reported in the preceding annual financial audit.
2. The Village, during fiscal year 2000, was not in a state of financial emergency as defined by Florida
Statute, Section 218.503 (1). The Village had no deficit fund balances for two consecutive years.
The Village is in compliance with the investment policy of public funds established in Section
218.415 (1999) of the Florida Statutes.
4. Recommendations made in the preceding annual financial audit have been implemented, except as
disclosed in the accompanying schedule of findings.
5. Recommendations to improve the Village's present financial management, accounting procedures and
internal controls are accompanying this report in the schedule of findings.
6. 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 and contractual provisions.
b. Made any illegal or improper expenditures.
c. Had improper or inadequate accounting procedures, except as noted in the schedule of findings.
-63-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305- 377 -4228 • Fax 305 -377 -8331
Offices in: Miami • Ft. Lauderdale • Boca Raton • West Palm Beach • Stuart
www.rchcpa.com - - - - - - -
Member of Summit International Associates, Inc. kith offices in principal cities throughout the �% or] d
Member of the American Institute of Certified Public Accountants and member of the Florida Institute of Certified Public Accountants
l
Honorable Mayor, Village Council and Village Manager
Miami Shores Village, Florida
Page Two
d. Failed.to record financial transactions, which could have a material effect on the Village's general
purpose financial statements.
e. Had other inaccuracies, shortages, defalcations and instances of fraud.
6. The annual financial report for the year ended September 30, 2000 has been filed with the
Department of Banking and Finance pursuant to Section 218.32 Florida Statutes and is in agreement
with the audited financial statements of the same period.
7. Miami Shores Village, Florida was incorporated by Laws of Florida 27675.
This report is intended solely for the information and use of the Mayor, Village Council, management,
and the Auditor General of the State of Florida and is not intended to be and should not be used by
anyone other than those specified parties. However, this report is a matter of public record and its
distribution is not limited.
Miami, Florida
December 15, 2000
xge�- d/M.- e 2��
-64-
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2000
PART I. CURRENT YEAR'S COA'IMENTS AND RECOMMENDATIONS
00 -1. New Florida Investment Law for Public Funds
Condition
On October 1, 2000, the new Investments of Public Funds Act became effective. Senate Bill 372 (the
Bill) creates uniform investment policy guidelines, limitations, and conditions for the investment of assets
of local retirement plans and of other funds available to units of local governments. In addition, the Bill
authorizes the Department of Revenue and the Department of Banking and Finance to withhold certain
funds from local governments which fail to meet certain reporting requirements.
New Section 112.661, Florida Statutes provides that investments of any local retirement system or plan
must be consistent with a written investment policy adopted by the organization designated to make
investment decisions. Section 218.415, Florida Statutes, relating to local government excess funds
investment policies is amended.
Recommendation
We recommend that the Village and the administration review the new requirements for investment of
public funds.
Management Response
The Village's investment policies are clearly delineated in the Village's annual proposed operating budget
document. Beginning with the Proposed Fiscal Yea• 2000 -2001 Operating Budget, anticipating release
in June 2001, staff will revise the investment policies and incorporate the provisions defined in Sections
112.66 and 218.415 FSS for pension and excess working capital respectively for approval by the Village
Council.
00 -2. Computer System
Condition
The computer software used to perform the general ledger accounting activity was acquired in fiscal year
1984 -85. Since that time, growth of the Village has significantly affected its accounting requirements.
Industry trends have produced more sophisticated tools to perform this function, and productivity can be
improved by distributing the computer power to decentralized or networked computer systems.
The Village's present software contains a number of anomalies. Once an accounting period is closed, a
new year is opened and there is no way to go back into the old year to make any required adjustments or
corrections. Also, the computer permits one -sided journal entries. This has the potential for a
tremendous hazard in that double entry bookkeeping is not required and audit trails are lost. During the
year, we noted several one -sided postings with no corresponding entry specifically relating to the
September 30, 2000 audit. In order to reconcile opening fund balance, a credit entry was made directly to
the Village's income statement for approximately $102,000. Discussions with the Chief Financial Officer
reveal this entry was a result of the computer erroneously recording the amount the other way.
-65-
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS (Continued)
00 -2. Computer System (Continued)
Recommendation
We recommend that the Village conduct an evaluation of the existing accounting system and an analysis
of projected needs for the future. This evaluation should focus on ensuring that the Village's financial
systems maximize the productivity of its accounting staff and meet the future needs of management.
RCH has a department that is dedicated to this type of evaluations and services. We would be happy to
put management in touch with the right people to assist in this project.
Management Response
Staff has initiated the first phase of this project to determine replacement automation. Formal proposals
will be prepared during the second and third quarters of fiscal year 2001 with a new system to be in place
by fiscal year end.
00 -3. Post Closing Journal Entries
Condition
For the second consecutive year, we noted that none of the post closing journal entries arising as a result
of the previous audit were posted to the Village's official financial statements. The result of this has two
consequences: 1) opening account balances do not reflect final prior end of year financial statement
balances, and 2) excessive time is required on the part of financial accounting staff and the auditors to
reconcile the opening balances of the accounts. All of the final trial balances and post closing journal
entries are provided to the client at the conclusion of the engagement.
Recommendation
We recommend that once the financial statement is issued, the client should make all journal entries. This
will alleviate the burden at the end of the new fiscal year in trying to reconcile back to the final adjusted
numbers.
Management Response
In subsequent findings, issues concerning the Village's computer system are addressed. While
acknowledging that entries are critical to the accounting fundamentals, the system is incapable of
processing standard year -end accounting adjustments. Staff, however, spent extensive time with the
Village's computer consultant to determine the most effective approach to this issue. Following the
completion of the fiscal year 2000 audit, the Chief Financial Officer will coordinate a year -end adjusting
transfer. The adjustment starts with the Village's closing line -item balances at September 30, 2000 prior
to the audit including the year -end trial balance prepared by the auditors. This information will be
merged on a manual spreadsheet to determine the revised value of each line item. The computer
consultant will reopen fiscal year 2000 and replace the values of each of the accounts to reflect the final
number on September 30, 2000. The consultant will then take the actual fiscal year 2001 transactions
recorded on the Village's books from October 1, 2000 through the date of the last entry made, adding
-66-
MIAMI SHORES VILLAGE, F' LORIDA
SCHEDULE OF FINTDINGS
(Continued)
PART I. CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS (Continued)
00 -3. Post Closing Journal Entries (Continued)
Management Response (Continued)
those values to the recalculated and replaced values previously mentioned. This process is theoretical but,
based upon the structure of the system this replacement process should bring the balances in line. This is
not an efficient or productive means to operate an organization of this size and staff will address new
automation later in this report.
00 -4. Fund Balance Journal Entries
Condition
During our audit, we noted that during the year, there were journal entries and postings made directly into
various equity accounts. The balances in these accounts should change each year by only excess revenues
over expenditures and equity transfers. There should be no other items affecting the equity accounts
directly.
Recommendation
We recommend that finance personnel strictly review all journal entries before any postings are made.
Management Response
No entries to equity accounts will be made unless specifically authorized by the Chief Financial Officer.
00 -5. Audit Adjustments
Condition
During the course of the audit, we proposed more than thirty adjusting journal entries. Substantially all of
the entries were to record year end adjustments and correct certain bookkeeping errors. A substantial
reason for the numerous corrections is that the Village's computer system does not allow year end items
to be recorded.
Recommendation
We believe that a review and evaluation of transactions and proper monthly closing procedures would
expedite the year -end closing and reduce audit time and fees. In order to ensure that all accounting
procedures are performed on a timely basis, we recommend that a comprehensive checklist be prepared to
be used by the finance staff. The checklist should cover all procedures that the Village determines need
to be performed on a periodic basis including, but not limited to, month end procedures such as bank
reconciliations, and general ledger account analysis.
-67-
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS (Continued)
00 -5. Audit Adjustments (Continued)
Management Response (Continued)
The Chief Financial Officer has already developed and implemented new administrative policies that: 1)
require the CFO review and authorization of all payments or accruals to ensure accurate account postings;
2) require the CFO to coordinate the monthly closing process; 3) CFO has prepared and implemented the
Miami Shores Village - Comprehensive Accounting and Finance Department Operational Guide to
Month- end /Quarter -end Closings.
00 -6. Monthly Account Reconciliations
Condition
In order to make the financial reports generated by the accounting system as meaningful as possible, the
Village should reconcile all general ledger accounts on a monthly basis and retain copies of all
reconciliations. This will ensure that proper accounting policies and practices are followed throughout
the year.
Recommendation
Cash
A cash reconciliation that reconciles from the bank balance to the general ledger balance should be
prepared to determine that all cash transactions have been recorded properly and also to discover bank
errors; maintaining the completed account reconciliation worksheets for year end reference.
Accounts Receivable
A reconciliation of accounts receivable from the general ledger to the accounts receivable detail ledger
should be prepared to check that the recording of transactions is accurate and proper and that any
adjustments to or write -offs of accounts receivable have been approved.
Accounts Payable
A reconciliation of accounts payable from the general ledger to the outstanding accounts payable register
should be prepared to determine that all additions to and payments of accounts payable are correctly
recorded and to determine whether there are any disputed items.
Loan Balances Fixed Assets and Inventory
Other account balances, such as loan balances, fixed assets, etc., should also be adjusted to the correct
balances on a monthly basis.
-68-
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS (Continued)
00 -6. Monthly Account Reconciliations (Continued)
Recommendation (Continued)
These reconciliations and adjustments will ensure meaningful and accurate financial statements. The
financial statements can then be used to help in the management decision - making process and for budget
preparation. This is a report comment from the prior year.
Management Response
The Chief Financial Officer has already implemented new policies that enforce the requirement that all
subordinating schedules are reconciled to the general ledger or other operating accounts. Additionally, to
provide supplement research, the CFO will perform random analysis throughout the year.
00 -7. Incomplete Bank Reconciliations
Condition
Monthly bank reconciliations are the primary internal control procedure relating to the Village's cash
accounts. During fiscal 2000, bank reconciliations were prepared, however, some of the accounts were
not completely reconciled. As of September 30, 2000, there was an unreconciled balance. Although this
amount may have been immaterial to the overall financial position of the Village, it may obscure
significant offsetting items.
We noted during our audit that bank reconciliations are not prepared in an efficient timely manner. We
also noted that the details of bank reconciliations are not always properly preserved.
Recommendation
Timely preparation of complete and accurate bank reconciliations is a key to maintaining adequate control
over both cash receipts and disbursements. Many of the reconciliations contained unreconciled
differences. An unreconciled difference that appears immaterial can obscure significant but offsetting
items that would cause for investigation if the items were apparent.
We recommend that all bank accounts be reconciled each month prior to preparation of the monthly
financial statements. Also, it is generally easier and less time - consuming to reconcile accounts while
transactions are fresh in mind.
We recommend that the chief financial officer review the bank reconciliations for accuracy and
completeness on a timely basis. The review should include test of mechanical accuracy and tracing items
on the reconciliation to the relevant source documents. The composition of unreconciled differences
should be determined and followed up on, and any journal entries deemed necessary as a result be
recorded. If necessary, the preparer of the reconciliation should be given additional training and
instruction on how to prepare them accurately and completely.
.•
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS (Continued)
00 -7. Incomplete Bank Reconciliations (Continued)
Recommendation (Continued)
We recommend that the chief financial officer sign the reconciliations as an indication of approval.
Doing so would take little additional time and might even prevent time from being wasted by inadvertent
review of reconciliations that had already been reviewed. We also recommend that the reconciliations be
signed and dated by the employee preparing them. As a prompt to the preparer and approver to sign the
reconciliation, preprinted reconciliation forms could include a signature block with space for the
signatures, or a stamp with a signature block could be applied to the reconciliations.
Finally, we recommend that a file be set up for the bank reconciliations together with detailed lists of all
reconciling items, and that the reconciliations be preserved.
Management Response
The CFO implemented new procedures as of January 1, 2001 requiring: 1) all bank accounts are
reconciled to the books by the 10`'' working day of each month; 2) unreconciled differences must be
researched and identified as priority prior to the subsequent month's close; 3) random receipts and
disbursements are made following reconciliation completion; 4) a notebook is created, retaining the bank
statements, cash proofs, reconciliation worksheets and all supplemental schedules indefinitely; 5) the final
account receivable is reviewed and approved by the CFO prior to period end closure. The CFO has also
segregated the bank reconciliation responsibilities to staff. Cash receipts are consolidated and reconciled
by one member. Disbursements are reconciled by another person. The Comptroller is responsible for
collating the overall reconciliation for final review by the CFO.
00 -8. Outstanding Checks
Condition
During our audit we noted that the Village has outstanding checks that are more than a year old. Further
testing revealed that a number of these checks were voided and reissued, cancelled or otherwise disposed
of and were still included in the outstanding check register of the Village. This causes an understatement
of cash and improper financial reporting.
Recommendation
We recommend that the Village review their procedures for tracking outstanding checks. Any checks that
remain outstanding for six months or longer should be evaluated to ensure that they are still valid
outstanding items. Any items that have been replaced during the course of operations should be voided
and removed from the outstanding checklist.
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MIAAII SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS (Continued)
00 -8. Outstanding Checks (Continued)
Management Response
The Chief Financial Officer discontinued this practice originating from the prior administration on
January 1, 2001. While the practice of holding outstanding checks for a long period has been in place for
more than ten years, it is impracticable. The new policy will record checks as outstanding for 120 days
from issue date. After that, the check will be canceled. New checks are ordered and a reference stating
"Valid Four Months from Issue" is posted immediately above the signature.
00 -9. Held Checks
Condition
During the course of our audit we noted a significant number of held checks. Items were being prepared
and held to be released at a later date.
Recommendation
We believe that, although invoices should be promptly entered into the accounts payable system, checks
should not be prepared until the disbursement is ready to be made. In the event that checks are held, it is
essential that the Village makes a reclassification entry and properly records the held items as accounts
payable.
Management Response
The Finance Department will print checks only when scheduled for release. The Chief Financial Officer
will also confirm with those departments requesting the checks the dates they are released.
00 -10. Inventory
Condition:
During the course of our audit, we noted that the Village has significant parts and supplies inventory. We
became aware that the Village does not accurately track balances for items held in inventory.
Recommendation
We recommend that a perpetual inventory system be established to control periodic inventory items that
are readily convertible to personal use and items with high unit cost. Periodic physical counts should be
made of these items in order to detect pilferage or usage not charged to jobs or departments, and the
physical count should be reconciled to perpetual records.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. CURRENT YEAR'S COMMENTS AND RECOMMENrDATIONS (Continued)
00 -10. Inventory (Continued)
Management Response
The Chief Financial Officer will ensure that the new automation system includes a fixed asset and
inventory control module. On an interim basis, Finance will coordinate with the Public Works
Department, regular monthly inventory counts, reconciling the results of the counts to the system -
generated inventory report. Finance staff will also perform random tests to ensure control. The CFO will
ensure that monthly adjusting entries are prepared to expense the necessary items and correct for any
inventory removals.
00 -11. Compensated Absences
Condition
During our audit, we noted that the Village does not properly maintain the detailed records necessary for
making a precise accrual for compensated absences. Since the Village's vacation policy is based on the
employee's anniversary date rather than on a calendar or fiscal year, a vacation accrual should be made
for any earned and unpaid vacation due to employees at the Village's fiscal year end.
Recommendation
We recommend that the Village consider making a detailed analysis of vacation and sick time earned by
each employee in each department in order to record the appropriate liability at fiscal year end. Computer
software programs for maintaining such records are available. We could assist the Village in selecting
this type of program.
Management Response
The Chief Financial Officer has initiated a new program that is designed to centralize the records
maintenance system for leave and recalculating values of those leaves, sorted by employee, department -
division and type. Additionally, as part of the new automation program, a leave or benefits module will
be incorporated into the system specifications.
00 -12. Accounting Procedures Manual
Condition
We noted that the Village does not have an accounting procedures manual. There may be an assumption
that because the Village's accounting system is relatively simple and accounting personnel have direct
access to the chief financial officer when questions arise, there is no need for a manual. However, written
procedures, instructions, and assignments of duties will prevent or reduce misunderstandings, errors,
inefficient or wasted effort duplicated or omitted procedures, and other situations that can result in
inaccurate or untimely accounting records.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. CURRENT YEAR'S COMMENTS AND RECOMMENDATIONS (Continued)
00 -12. Accounting Procedures Manual (Continued)
Recommendation
A well- devised accounting manual can also help to ensure that all similar transactions are treated
consistently, that accounting principles used are proper, and that records are produced in the form desired
by management. A good accounting manual assists with the training of new employees and possibly
allows for delegation of some of the accounting functions currently performed by management for other
employees.
It will take some time and effort for management to develop a manual; however, we believe this time will
be more than offset by time saved later in training and supervising accounting personnel. Also, in the
process of the comprehensive review of existing accounting procedures for the purpose of developing the
manual, management might discover procedures that can be eliminated or improved to make the system
more efficient and effective. Should management desire; we would be pleased to assist the Village in
developing an accounting manual as a separate engagement.
Management Response
The Chief Financial Officer will take this recommendation under advisement and expand upon the
existing one -page narrative prepared by the previous administration. A handbook of standard operating
procedures is critical to a smooth accounting operation and will also eliminate the misunderstandings that
may arise from interpreting various departmental operations. The handbook preparation will begin during
the second quarter fiscal year 2000. The manual will be sent to the Village auditors for final review
during the fourth quarter of fiscal year 2001.
PART H. STATUS OF PRIOR YEAR'S COMMENTS AND RECOMMENDATIONS
99 -1. New Pronouncement
Condition
Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements — and
Management's Discussion and Analysis —for State and Local Governments, establishes new financial
reporting requirements for state and local governments throughout the United States. When implemented,
it will create new information and will restructure much of the information that governments have
presented in the past. These new requirements were developed to make annual financial reports more
comprehensive and easier to understand and use. The new reporting model will include government -wide
financial statements as well as fund financial statements as well as a management's discussion and
analysis section. Implementation will be required for fiscal year ending September 30, 2003. However,
many of the reporting requirements need to be addressed several years before the required implementation
date.
Recommendation
We recommend that the Village review the new requirements and plan accordingly.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART II. STATUS OF PRIOR YEAR'S COMMENTS AND RECOMMENDATIONS (Continued)
99 -1. New Pronouncement (Continued)
Management Response
The Village has reviewed the GASB 34 requirements and the Chief Financial Officer and other key
accounting staff members have attended several workshops addressing the new reporting module
requirements. The Village will ensure that the new automation efforts include modules capable of
preparing the GASB 34 requirements.
99 -2. Financial Reporting System
Condition
During our audit, we noted that the Village did not have adequate documentation for certain calculations,
policies and journal entries specifically as they related to compensated absences, receivables, fund
balance and general fixed assets. This results in certain revenues, assets and liabilities to be erroneously
reported. Matters noted during the audit were corrected and are properly reported.
Recommendation
We recommend the Village develop written procedures and policies regarding the documentation required
for recording of journal entries and have the Chief Financial Officer review and approve of entries prior
them being recorded.
Management Response
The Village has implemented written policies and has taken steps to ensure proper documentation is
obtained prior to entries being recorded.
This finding continued in fiscal year 2000 and corrective action will be immediately taken by the Chief
Financial Officer. The problem originated during the prior administration and followed procedures that
were in place for the last eight years. Now that supplemental funds have been added to the organization,
these issues are more critical and the Chief Financial Officer has already prepared and released a
departmental directive concerning procedures, records and supporting schedules critical and essential to
accurate reporting.
99 -3. Grant Centralization
Condition:
The Village made an attempt to centralize its grant procedures so that any grants applied for flowed
through the Village's finance department and that the Village took a proactive approach to applying for
any and all federal and state funding available. It was discovered that several of the departments are
applying for monies and the finance department is completely uninformed of the awards until after funds
are expended or received. This subjects the Village to various degrees of non - compliance in the areas of
filing and reporting.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART II. STATUS OF PRIOR YEAR'S COMMENTS ANTD RECOMMENDATIONS (Continued)
99 -3. Grant Centralization (Continued)
Recommendation
We recommend that the Village establish a formal grant process that requires sign -off by all of the
responsible officials, department heads with final authorization passing through the finance department.
Management Response
While considerably improved, there are still isolated experiences where the Finance Department is not
included in the flow and exchange of information concerning grant applications, receipts, disbursements
and reimbursements. Staff will continue to improve on this area to avoid any potential grant reporting
conflicts.
99 -4. Code Violation Revenues
Condition
At present, the code enforcement department fines residents for various violations. These fines are
recorded in the Village's records on the accrual basis. Due to the nature of such items, they tend to
remain unpaid or unresolved for a considerable amount of time, thereby presenting an unrealistic amount
of revenue during the year.
Reconintendation
We recommend that the Village begin recording the violations on the cash basis, but also retain a listing
of potential revenues to be collected.
Management Response
The General Ledger - related code enforcement program is copyrighted and trade marked by an individual
unwilling to release its source code. As such, no changes can be made to this system and manual entries
will continue to be required monthly to reverse the erroneous accrual overstatements. Code Enforcement
now uses an independent PC -based system and provides information to finance upon receipt and
settlement. For old cases, the Finance Department is still required to make the necessary adjustments and
reversals. The new automation project will ensure that there is compatibility between the PC -based code
program, downloading the financial data to the Village's General Ledger.
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