2001MIAMI SHORES VILLAGE,FLORIDA
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Fiscal Year
Ended September 30, 2001
MIAMI SHORES VILLAGE, FLORIDA
GENERAL PURPOSE FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2001
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 Funds
8
Notes to General Purpose Financial Statements
9 -29
Required Supplementary Information
30 -31
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
Governmental Fund Types
General Fund:
Comparative Balance Sheets 32
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance 33
Schedule of Revenues and Expenditures - Budget and Actual 34 -37
Special Revenue Funds:
Combining Balance Sheets 38
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 39
Combining Statement of Revenues and Expenditures - Budget and Actual 40
Capital Projects Funds:
Combining Balance Sheets 41
Combining Statements of Revenues, Expenditures and Changes in Fund Balances 42
Combining Statements of Revenues and Expenditures - Budget and Actual 43
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
(Continued)
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES, Continued
Proprietary Fund Types
Enterprise Funds:
Combining Balance Sheets 44
Combining Statements of Revenues, Expenses and Changes in Retained Earnings 45
Combining Statements of Cash Flows 46
Internal Service Fund:
Combining Balance Sheets 47
Combining Statements of Revenues, Expenses and Changes in Retained Earnings 48
Combining Statements of Cash Flows 49
Fiduciary Fund Types
Trust and Agency Funds:
Combining Balance Sheets - Trust and Agency Funds 50
Combining Statements of Revenues, Expenditures and Changes in Fund Balances -
Expendable Trust Funds 51
Comparative Statements of Plan Net Assets - Pension Trust Fund 52
General Fixed Assets Account Group
Schedules of General Fixed Assets - By Source 53
Schedule of General Fixed Assets - By Function and Activity 54
Schedule of Changes in General Fixed Assets - By Function and Activity 55
STATISTICAL SECTION
General Governmental Expenditures by Function
56
General Governmental Revenues by Source
57
Property Tax Levies and Collections
58
Assessed Value of Taxable Properties
59
Property Tax Levies
60
Direct and Overlapping Debt
61
Demographic Information and Statistics
62
Property Value, Construction and Bank Deposits
63
Miscellaneous Information
64
Principal Taxpayers
65
Ten Largest Public and Private Employers Located in Miami -Dade County, Florida
66
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
(Continued)
COMPLIANCE SECTION
PAGF,
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 67 -68
Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 69 -70
Schedule of Findings 71 -83
INTRODUCTORY SECTION
Thomas J. Benton
VILLAGE MANAGER
Mark A. Malatak, C.P.A.
CHIEF FINANCIAL OFFICER
MIAMI SHORES VILLAGE
January 14„ 2002
Mayor Al Davis and
Members of the Village Council
10050 Northeast Second Avenue
Miami Shores, Florida 33138 -2382
Dear Mayor Davis and Council members:
Office of the Village Manager
10050 N.E.2nd Avenue
Miami Shores, Florida 33138
Tel: (305) 795.2209
Fax: (305) 756.8972
Webpage: http: / /www.MiamiShoresVilla eg com
In compliance with Chapter § 11.45 Florida State Statutes and Chapter 10.550 ofthe Rules of the Auditor General, we are
pleased to submit for your review and consideration the Miami Shores Village Comprehensive Annual Financial Report
(CAFR) for the fiscal year ended September 30, 2001. 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 accounting principles generally accepted in the United States 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) Compliance. 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
Compliance Section provides the regulatory or mandated 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, storm water drainage
services along with the construction and maintenance of Village -owned properties and general infrastructure.
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 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.
FY2000 -2001 Audit Transmittal Letter Januaryl4, 2002
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 Chapter §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 management controls and fund security. The
control levels at which expenditures cannot legally exceed appropriated amounts are 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 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
General Fund: Revenues and other operating sources including operating transfers -in totaled $7,916,996 for the fiscal
year ended September 30, 2001. This represents a 6.1 % increase over the $7,434,556 reported in FY 2000. A detailed
revenue analysis of the General Fund follows:
Total Revenue Sources
Source
Amount
Percent
of Total
Increase
(Decrease)
over 2000
Percent of
Increase
(Decrease)
Ad Valorem Revenues
$3,152,976
39.9%
$60,872
1.9%
Licenses & Permits
335,561
4.3%
62,644
17.6%
Intergovernmental
919,339
11.7%
8,706
1.0%
Charges for services
671,075
8.5%
179,070
26.7%
Fines & Forfeitures
290,484
3.7%
31,873
11.0%
Interest Income
226,593
2.9%
-2,313
-1.0%
Other Revenues
280,756
3.6%
- 108,332
-38.6%
Operating Transfers -in
2,020,212
25.5%
249,929
12.8%
TOTALS
$7,916,996
100.0%
$482,440
6.1%
The single, largest General Fund revenue source originated from ad valorem or property tax distributions, representing
40% of total receipts. Ad valorem collections were 2% greater than the FY 2000 collections resulting from the increased
assessed value of real and personal properties within the Village. As with many municipalities in Miami -Dade County,
Miami Shores was not exempt from the increase in the number of property owners that have challenged property values.
Accordingly, collections, while reflecting a 2% increase, excludes receipts from those property owners who have not yet
paid. When the final hearings for those challenges have been resolved, property taxes will be distributed to the Village
and recorded in subsequent years' delinquent ad valorem collection accounts. 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.
ii
FY 2000 -2001 Audit Transmittal Letter January14, 2002
Expenditures: Total General Fund Expenditures were $7,887,030 for the fiscal year ended September 30, 2001. The
annual revenues exceeded expenditures resulting in a $29,966 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 2001 expenditures were 9.2% greater than the prior
year due to enhanced administrative and operational activities along with contractually- negotiated cost increases and
pension fund contributions.
Total Expenditures
Source
Amount
Percent
of Total
Increase
(Decrease)
over 2000
Percent of
Increase
(Decrease)
General Government
$1,070,889
13.8%
$228,972
21.4%
Public Safety
3,529,091
44.6%
360,444
10.2%
Public Works
975,791
12.4%
- 87,621
-9.0%
Recreation & Culture
2,174,840
27.6%
511,896
23.5%
Other Services
136,419
1.6%
- 60,797
-44.6%
Operating Transfers -out
-
0.0%
- 225,283
- 100.0%
TOTALS
$7,887,030
100.0%
$727,611
9.2%
General Government reports the following administrative departments or divisions of the Village: Mayor and Village
Council, Office of the Village Manager, Office of the Village Clerk, Village Attorney, Planning & Zoning Department,
and the Finance Department. Public Safety reports activities related to the Police Department, Building Department and
Code Enforcement Division. Public Works includes the Administrative Division, the Parks Maintenance Division, and
the Recreation Maintenance Division. In the Recreation and Culture category, the activities of the Department's
Administrative Division, Community Center Division, Athletics Division and subordinated 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 five (5) funds reported under this section: 1) Excise Tax Fund; 2) Local Option
Gas Tax Fund; 3) Grant Fund; 4) Safe Neighborhood Parks Bond Project Fund; and, 5) 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 other petroleum
products and sanitation or private trash hauling fees. Note: as defined in the Bond Covenants of the General Obligation
Bond, Series 1999 (soldApri11999), all excise taxproceeds continue aspledged or subordinated revenues ifinsufficient
ad valorem revenues are received to meet the obligatory bond or debt service payments. This commitment will exist
throughout the term of the Bonds and may not be pledged for other debt instruments.
Local Option Gas Tax Fund [1301 -- reports the collection of sales 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 Undesignated
Fund Balance account that may be used for future street, sidewalk or streetlight projects.
iii
FY 2000 -2001 Audit Transmittal Letter January14, 2002
Grant Fund [150] -- records 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 library equipment. he Finance Department,
accordingly, establishes a separate division in the fund to report the costs related to each respective grants or programs.
Safe Neighborhood Parks Bond Project Fund [1551— reports all costs incurred and corresponding receivables from
Miami -Dade County associated with the $100,000 award from the County-wide Safe Neighborhood Parks Bond Fund
Projects. The Village's award was used to renovate and rehabilitate the Optimist and Memorial Parks. During FY 2000-
2001, the Village completed the renovation project and submitted a reimbursement to Miami -Dade County of $97,368.
Hurricane -Storm 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, submitted for reimbursement from insurance policies
and/or from the Federal Emergency Management Agency (FEMA).
PROPRIETARY OR ENTERPRISE FUND OPERATIONS. The Village operates two self - supporting enterprise
fund operations: Storm water and Sanitation. Enterprise funds use 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 from each of the individual operations are paid by their respective fund assets and depreciated; transferring those
accumulated depreciation funds into supporting renewal and replacement accounts respectively. The Sanitation Fund
reported an operating surplus of $242,986 on revenues totaling $1,681,589. The Storm water Fund reported an operating
loss of $282,366 on $138,648 in revenues. This loss results from three critical components: 1), a year -end
reclassification of expenses, initially recorded as costs in the subsequent year that were reclassified back to FY 2000-
2001 by the auditors to present the financial information in a full- accrual format; 2), the one -time write off of receivables
that originated during the time when the County processed the Villages invoices; and 3) the use of previously
accumulated cash reserves to partially fund several of the FY 2000 -2001 capital improvement projects.
INTERNAL SERVICE FUND. For FY 2000 -2001, the Village operated two internal service funds: the Risk
Management Fund under the Finance Department and the Fleet Maintenance Fund under the Public Works Department.
These funds are used to monitor program costs of service rendered by the Village for other Village operations. Both
internal service funds are financially supported by contributions or inter -fund transfers between departments. The
allocation schedule is determined based upon a weighted scale for the individual services provided.
For FY 2000 -01, the Village continued to operate as a self - insured organization. Operating costs include an actuarially -
determined reserve fund for future financial exposures as well as premiums to provide insurance contracts for excess
coverage exposures for both general liability and workers compensation matters. Complying with various state statutes,
the Village contracts the third party administration for 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, these 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 costs, a ratio using the total operating
divisional budgets as a percent of total budgets to determine the allocation factor, is applied and budgeted accordingly.
The Fleet Maintenance Operation, previously an operating division in the general fund (in the Public Works Department),
was created in order to develop and accumulate a capital equipment reserve fund through annual depreciation
contributions. Additionally, the fund was established to ascertain the true costs of operating a mechanical maintenance
function. The Division is responsible for all vehicles and other equipment.
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
net assets, liabilities and benefits to qualified police officers. Each fund has individual boards of trustees who are
responsible for investment policies and decisions. Additionally, each board has the fiduciary responsibility to ensure that
sufficient revenues exist, net of costs, to fund future pension obligations.
iv
FY 2000 -2001 Audit Transmittal Letter Januaryl4, 2002
OTHER OPERATIONS & FUNDS.
The General Fixed Assets Account Group (GFAAG) 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 capitalized at
the end of each fiscal year and reported accordingly. Note: GASB 34 regulations requirefull disclosure and depreciation
of assets for reporting purposes. The Village has initiated compliance processes for this regulation and will be revised
in future year's reports. As of September 30, 2000, the total value of assets reported in this account group is
$12,254,458.
The General Long -term 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 $250,819, $531,751, $644,594,and $3,090,000 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 10,400 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 limited commercial district, located on Second Avenue and Biscayne Boulevard.
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.
The Village, one ofthe top five most affluent communities in Miami Dade County, continues to see considerable interest
in properties and investments finding as demonstrated by our building permits. Property values continue to escalate in
excess of county averages. During the past year, the Village has started several new long -term projects. Included among
these items is the consideration for the new Village- sponsored Charter School. Action is during FY 2001 -02.
The Village is also considering the redevelopment of the Second Avenue Business District. If the Village Council
continues to express interest in this program, the Second Avenue corridor has the potential of seeing a considerable
change and new interest. This new interest has the potential of increasing property values and enhancing residential
property values.
The Village has also demonstrated clear leadership in the maintenance of its public right -of -ways and parks facilities.
New initiatives have developed during FY 2000 -01 that spill over into the FY 2001 -2002 year, increasing the
rehabilitation of parks, easements, medians and other public areas. Additionally, the Village completed the Biscayne
Boulevard Fence project and other landscape improvement programs.
The Administration continues to dedicate strong effort to code enforcement and public safety. During the 2000 -2001 and
2001 -2002 fiscal years, the Village has pledged special enforcement dollars to the community. Code Enforcement
violations have increased as well as an expanded crime prevention unit using prior year operating surpluses. These
is
FY 2000 -2001 Audit Transmittal Letter January14, 2002
efforts have made the Village a more confident community and, concomitantly, the monthly "House of the Month"
program has been initiated. This program acknowledges the hard work of property owners who have pledged equity into
their homes and made such changes those monthly awards are rendered by the Council, awarding these property owners
for their efforts and community commitment.
OTHER INFORMATION: The State of F1.0rida requires municipalities to prepare annual audited financial reports.
Prepared by the Village's extemal auditors, the supplemental information contained in the report provides the 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 Accepted Principles
Generally Accepted in the United States and Generally Accepted AuditingStandards, the Firm made technical comments
that have improved the financial reporting and enhanced the productivity levels of the Village's work force.
In compliance with prior year comments, the Finance Department has initiated and is currently transferring financial
operations from the Village's 18 -year old PICK system to a new software program. Once in place, new accounting and
financial systems will be in place to meet the needs of the technologically advancing community.
Acknowledgments. The preparation of $he Comprehensive Annual Financial Report (CAFR) demonstrates the
professional commitment of the Finance Department staff. 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.
In closing, the Village pledges its commitment to serve the residents and businesses of Miami Shores by continuing with
our high level of public safety services, recreational and leisure activity services as well as ensuring that the overall
infrastructure of the community demonstrates the highest standards expected by the community. We thank you for this
opportunity and look forward to an optimistic and prosperous future.
Respectfully submitted,
MIAMI SHORES VILLAGE
,--a / W
THOMAS J. BENTON
Chief Executive Officer
Village Manager
TJB:MAM:
Attachments
Z-L-to. CL41
MARK A. MALATAK, C.P.A.
Chief Financial Officer
Finance/Budget Director
MIAMI SHORES VILLAGE, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2001
MAYOR & COUNCIL
MAYOR WILLIAM A. DAVIS
VICE MAYOR GREGORY ULLMAN
COUNCILMAN ROBERT C. BLUM
COUNCILMAN PROSPERO G. HERRERA
COUNCILMAN MARK S. ULMER
VILLAGE CLERK VILLAGE ATTORNEY
BARBARA A. FUGAZZI RICHARD SARAFAN, ESQ.
VILLAGE MANAGER SPECIAL PROJECTS
ADMINISTRATOR
THOMAS J. BENTON
JAMES SMITH
MIAMI SHORES VILLAGE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 2001
MAYOR
William A. Davis
VILLAGE COUNCIL
Gregory Ullman - Vice Mayor
Robert C. Blum
Prospero G. Herrera
Mark S. Ulmer
VILLAGE MANAGER
Thomas J. Benton
CHIEF FINANCIAL OFFICER
Mark A. Malatak, CPA
VILLAGE AUDITORS
Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
FINANCIAL SECTION
REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
Rachlin Cohen & 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, 2001 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 auditing standards generally accepted in the United States and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose
financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
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, 2001, and the results of its operations and
the cash flows of its proprietary fund types for the year then ended in conformity with accounting principles
generally accepted in the United States.
In accordance with Government Auditing Standards, we have also issued a report dated January 14, 2002 on our
consideration of the Village's internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations and contracts. That report is an integral part of an 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 30 and 31 are presented for purposes of
additional analysis and are not a required part of the general purpose tnancial statements of the Village. Such
information has been subjected to the auditing procedures applied in the audit of the general purpose financial
statements and, in our opinion, 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.
46wZ11-
Miami, Florida
January 14, 2002
-1-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305 - 377 -4228 • Fax 305 - 377 -8331
Offices in: Miami • Ft. Lauderdale • West Palm Beach • Stuart
- ww Auchcpa.com
Member of SUmmlthltemationatAssociates, Inc. with offices in principal cities throughout the world
Member of the American Institute of Certified Public Accountants and member of the Ftorida Institute of Certified Public Accountants
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
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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, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Revenues:
Taxes and fees
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Miscellaneous revenue
Interest
Contributions
Confiscated property
Total revenues
Expenditures:
Current:
General government
Public safety
Public services
Culture /recreation
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financuig
sources (uses)
Excess (deficiency) of revenues
over expenditures and other
financing sources (uses)
Fund balances, beginning
Fund balances, ending
Governmental
Fund Types
Special Debt
General Revenue Service
$ 3,152,976 $ 1,872,923 $ 239,643 $
355,561 - -
919,339 242,211
671,075 -
290,484 -
280,756 - -
226,593 11,487 1,024
5,896,784 2,126,621 240,667
Fiduciary Totals
Fund Type (Memorandum Only)
Capital Expendable
Projects Trust 20011 2000
- $
$ 5,265,542
$ 5,045,666
- -
355,561
292,917
-
1,161,550
1,180,059
-
671,075
492,005
-
290,484
279,260
-
280,756
389,088
46,575 26,371
312,050
490,898
- 35,612
35,612
5,889
- 145,929
145,929
108,313
46,575 207,912
8,518,559
8,284,095
1,070,889
207,926
3,742
-
-
1,282,557
1,259,925
3,529,091
-
-
1,370,132
287,423
5,186,646
3,564,115
975,791
-
309,056
-
1,284,847
3,228,910
2,174,840
-
-
2,174,840
1,666,832
113,650
8,790
-
-
122,440
336,753
19,806
-
55,000
21,025
95,831
86,401
2,963
-
148,829
5,281
157,073
83,113
7,887,030
216,716
207,571
1,705,494
287,423
10,304,234
10,226,049
(1,990,246)
1,909,905
33,096
(1,658,919)
(79,511)
(1,785,675)
(1,941,954)
2,020,212
-
-
-
2,020,212
1,865,057
-
(1,817,792)
(23,323)
(20,097)
(1,861,212)
(1,528,637)
2,020,212
(1,817,792)
(23,323)
(20,097)
159,000
336,420
29,966
92,113
9,773
(1,658,919)
(99,608)
(1,626,675)
(1,605,534)
2,844,082
482,534
43,559
1,473,924
545,743
5,389,842
6,995,376
$ 2,874,048
$ 574,647
$ 53,332
$ (184,995) $
446,135
$ 3,763,167
$ 5,389,842
See notes to general purpose financial statements.
-4-
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MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -
ALL PROPRIETARY FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Operating revenues:
Charges for services
Operating expenses:
Administrative and general
Personnel expenses
Insurance premiums
Claims
Depreciation
Contractual services
Total operating expenses
Operating income (loss)
Non - operating revenues:
Interest income
Other income
Total non - operating revenues
Income before operating transfers
Operating transfers:
+_ ,.41.,, C.....,7..
11 a11O11.10 LV V L11G1 1U11Ub
Transfers from other funds
Total transfers
Net income (loss)
Retained earnings, beginning
Equity transfer in
Retained earnings, ending
Totals
Internal (Memorandum Only)
Enterprise Service
Funds Funds 2001 2000
$ 1,820,237 $ 1,041,893 $ 2,862,130 $ 2,033,828
976,772
661,841
22,722
48,335
354,361
403,267
169,741
137,001
1,709,670 1,U64,3 iU
110,567 (22,477)
976,772
1,016,202
403,267
169,741
159,723
48,335
"f '7^1A 11AA
00 AW1
287,787
725,797
354,101
66,784
')LO A, ^7
1,6U2,866
230,942
9,053 24,324 33,377 50,780
- - - 16,631
9,053 24,324 33,377 67,411
119,620 1,847 121,467 298,353
(159, "vOu) - (159,000) (496,938)
160,518
(159,000) - (159,000) (336,420)
(39,380) 1,847 (37,533) (38,067)
909,583 23,855 933,438 625,349
- 353,335 353,335 346,156
$ 870,203 $ 379,037 $ 1,249,240 $ 933,438
See notes to general purpose financial statements.
-6-
MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Due from other funds
Due from other governments
Inventory
Prepaid expenses
Increase (decrease) in:
Accounts payable and accrued liabilities
Estimated insurance claims
Due to other funds
Deferred revenue
Net cash provided by (used in)
operating activities
Cash flows from capital and related financing activities:
Capital improvements
Cash flows from non - capital financing activities:
Operating transfers out
Cash flows from investing activities:
Interest received
Proceeds from sale of land
Net cash provided by investing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
Internal Totals
Enterprise Service (Memorandum Only)
Funds Funds 2001 2000
$ 110,567 $ (22,477) $ 88,090 $ 230,942
22,722
137,001
159,723
66,784
13,606
(23,289)
(9,683)
(525,454)
(566,241)
184,680
(381,561)
(275,696)
29,639
-
29,639
-
1,150
-
1,150
(33,186)
-
3,117
-
(19,725)
33,425
40,930
74,355
64,269
-
(138,554)
(138,554)
(130,949)
317,832
(96,141)
221,691
364,257
8,427
-
8,427
559,483
(28,873)
85,267
53,277
300,725
(50,165) (215,983) (266,148) (56,056)
(159,000) - (159.000) (336.420)
9,053 24,324 33,377 65,427
- - - 31,984
31,984
(238,038) (130,716) (371,871) (59,767)
368,003 618,959 986,962 981,302
$ 129,965 $ 488,243 $ 618,208 $ 921,535
See notes to general purpose financial statements.
-7-
MIAMI SHORES VILLAGE, FLORIDA
COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
ADDITIONS
Contributions:
Employer
State
Employees
Total contributions
Investment income (loss):
Investment earnings (loss)
Less investment expenses
Net investment income (loss)
Other income
Total additions
DEDUCTIONS
Benefit payments and refunds
Administrative and general
Total deductions
XT- i 1
INUL utcrcase kaecrease)
Net assets held in trust for pension benefits:
Beginning of year
End of year
General
Police Employee's
Pension Pension
Fund Fund
Totals
(Memorandum Only)
2001 2000
$ 168,004 $ - $ 168,004 $ 199,535
38,137 - 38,137 27,606
115,803 105,680 221,483 247,854
321,944 105,680 427,624 474.995
(232,314) 97,712 (134,602)
(232,314) 97,712 (134,602)
89,630 203,392 293,022
408,668
74,429
228,134
53,512
483,097
281,646
(393,467) (78,254)
636,802
1,167,980
82,141
1,085,839
18,008
1,578,842
615,406
(471,721) 941,253
10,951,628
7,301,085
18,252,713
17,311,460
$ 10,558,161
$ 7,222,831
$ 17,780,992
$ 18,252,713
See notes to general purpose financial statements.
-8-
NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Miami Shores Village, Florida (the Village) was incorporated in 1931 and is a political
subdivision of the State of Florida located in northeastern 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, streets, sanitation, stormwater, cultural and recreational
activities, public improvements, planning and zoning, and general administrative services. The
Village also operates two internal service funds.
The accounting policies of the Village conform to accounting principles generally accepted in the
United States (GAAP) as applicable to governments. The Governmental Accounting Standards
Board (GASB) is the accepted standard - setting body for establishing governmental accounting
and financial reporting principles. The following is a summary of the more significant policies:
1. Financial 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.
-9-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2. Basis of Presentation (Continued)
The Village has the following fund types and account groups:
Governmental Fund TVDes
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
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 five
special revenue funds: Excise Tax Fund, Local Option Gas Tax Fund, Grant Fund, Safe
Neighborhood Bond Project 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 funds are 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 funds are 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
Village has two internal service funds, the Risk Management Fund and the Fleet Services Fund.
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 five
expendable trust funds, the General Trust, Police Insurance Trust, Law Enforcement Training
Trust, Police Forfeiture Trust and the Brockway Memorial Library Trust.
-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)
Fiduciary Fund Types (Continued)
The pension trust funds are accounted for in essentially the same manner as proprietary
funds, using the same measurement focus and basis of accounting. The Village has two
pension trust funds, The General Employees' Retirement System and the Police Officers'
Retirement System.
Account Groups
The general fixed assets account group is used to account for fixed assets not accounted for
in proprietary funds.
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 and expendable trust 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 funds and pension trust funds 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 the timing period 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 and expendable trust funds are
accounted for using the modified accrual basis of accounting. Under this model, 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.
-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)
Intergovernmental revenues, franchise fees, sanitation fees and utility service taxes are
recorded in accordance with their legal or contractual requirements and are recognized 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.
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 Funds and
Internal Service Funds, depreciation on their exhaustible fixed assets. Earned, but unbilled
service receivables have been accrued as revenue in the Enterprise Funds. The Village has
elected to follow all GASB pronouncements and all FASB pronouncements issued on or
before November 30, 1989, except for those that contradict a GASB pronouncement.
S. Equity in Pooled Cash and Cash Equivalents
Equity in pooled cash and cash equivalents includes cash on hand and investments with the
State Board of Administration investment pool (2A -7 Pool).
The Village maintains a pooled cash account for all funds. 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. Interest
earned on pooled cash and investments is allocated monthly based upon equity balances of the
respective funds.
6. Investments
The Village's investments are reported at fair value. The investments held with the State
Board Investment Pool (2A -7 Pool) are 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.
7. Interfund Receivables and Payables
Interfund transactions that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to as "due to /from other funds ".
-12-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
8. Inventories
Fuel, oil, tires, parts, office supplies and other inventories are recorded at cost, using the first -
in, first -out method. The initial cost is recorded as an asset at the time the individual inventory
items are purchased and are charged against operations in the period when used (consumption
method). Inventories are recorded on the balance sheet with a related reservation of fund
balance.
9. 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.
10. 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 40
Sanitation equipment 10
Vehicles 5
Other equipment, machinery, furniture and fixtures 3 -10
11. Compensated Absences
Village employees are granted vacation and sick leave in varying amounts based on length of
service and the department which the employee serves.
The Village's 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 a
-13-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
11. Compensated Absences (Continued)
liability and expenditure in the appropriate fund. Since unused vacation lapses within one
year, no vacation leave 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. The remaining accumulated sick
leave balance is accounted for in the general long -term debt account group.
12. 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.
13. 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.
14. Encumbrances
Encumbrances are recorded at the time a purchase order or other commitment is executed.
Encumbrances outstanding at year -end represent the estimated amount of expenditures on
unperformed purchase orders and other commitments outstanding. Appropriations lap_ se at
year -end; however, the Village generally intends to honor purchase orders and other
commitments in progress. As a result, encumbrances outstanding at year -end are reported s
reservations of fund balance since they do not constitute expenditures or liabilities of the
current period.
15. 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 previous fiscal obligations or tentative plans of the Village. Such plans or intent are subject
to change at the discretion of the Village.
-14-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
15. Reserves and Designations (Continued)
Unreserved undesignated fund balance is the portion of fund equity available for any lawful
use.
16. Property Taxes
Property taxes are valued as of January 1 each year and are first billed (levied) the following
October 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, 2001 was 8.3627 for general operating and .5151 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
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.
17. Budgets and Budgetary Accounting
Annual appropriated budgets are adopted for the General Fund, four of the five special
revenue funds (Excise Tax Fund, Local Option Gas Tax Fund, Grant Fund and Safe
Neighborhood Bond Project Fund), the Debt Service Fund and the capital projects funds
-15-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
17. Budgets and Budgetary Accounting (Continued)
(Capital Improvement Fund and 1999 General Obligation Bond Fund). The budget
allocations among the various organizational units are included in the Combined Statement of
Revenues, Expenditures and Changes in Fund Balances - Budget and Actual. Budgetary basis
is the same as GAAP basis.
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) Two public hearings are conducted during the month of September 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. There was one
reappropriation of reserved fund balance for outstanding encumbrances during fiscal
year 2001.
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.
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-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
18. Budget /GAAP Reconciliation
The following schedule reconciles the amounts on the Combined Statement of Revenues,
Expenditures and Changes in Fund Balance — Budget to Actual to the Combined Statement of
Revenues, Expenditures and Changes in Fund Balances — All Governmental Fund Types and
Expendable Trust Funds:
Special Revenue Funds:
Excess of revenues over expenditures and other financing sources (budget) $98,623
Budget difference (no legally adopted budget — Hurricane Fund) (6,510
Excess of revenues over expenditures and other financing sources (GAAP) $92,113
19. Excess Expenditures over Appropriations
The Village had the following expenditures which exceeded appropriations at September 30,
2001. The over expenditures were funded by available fund balance.
General Fund:
Village attorney
$ 36,335
Finance
729
Building department
8,224
Planning and zoning
601
Recreation maintenance
6,117
Community development
33,568
Debt services
22,769
Total General Fund
108,343
Excise Tax Fund
201,304
$309,647
20. Deficit Fund Balances / Retained Earnings
The Hurricane Special Revenue Fund had a deficit fund balance of ($70,911) as of
September 30, 2001. The fund incurred expenditures that were not approved by the Federal
Emergency Management Agency (FEMA). If FEMA does not approve the costs to be added
to the Village's request for reimbursement, the Village plans to transfer funds from the
General Fund to cover the costs.
The 1999 G.O. Bond Capital Projects Fund had a deficit fund balance of ($251,513) as of
September 30, 2001. The fund incurred additional expenditures to complete construction on
the aquatic facility which opened in 2000. The Village plans to transfer funds from the Debt
Service Fund Balance to cover the costs.
The Risk Management Internal Service Fund had retained deficit of ($20,715) as of
September 30, 2001. The Village plans to increase its charges for services to the other
departments to cover the costs.
-17-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
20. Deficit Fund Balances / Retained Earnings (Continued)
The Brockway Memorial Library Expendable Trust Fund had a deficit fund balance of ($3,573)
as of September 30, 2001. The library did not receive any donations during the year and
operating costs exceeded revenues. The construction for the expansion project began in the first
quarter for fiscal year 2002 and donations and contributions have significantly offset the deficit.
21. Interfund Transfers
During the course of normal operations, it is necessary for the Village to enter into numerous
transactions among its various funds. These transactions consist of one or more of the
following types:
• Reimbursements of a fund for expenditures or expenses initially made from it that are
properly applicable to another fund.
• Legally authorized operating transfers from a fund receiving revenue to the fund through
which the resources are expended.
22. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States 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.
23. 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.
24. Reclassifications
Certain balances presented in the general purpose financial statements for September 30, 2000
have been reclassified to conform to September 30, 2001 presentation.
25. 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.
3E-31
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
Deposits of the Village, including demand deposit accounts, are defined as public deposits.
All of the Village's public deposits are held in qualified public depositories pursuant to
Florida Statutes, Chapter 280, Florida Security for Public Deposits Act. Under the Act, all
qualified public depositories are required to pledge eligible collateral. All collateral must be
deposited with an approved financial institution. Any losses to public depositories are covered
by applicable deposit insurance, sale of securities pledged as collateral and, if necessary,
assessments against other qualified public depository of the same type as the depository on
default. When public deposits are made in accordance with Chapter 280, no public depositor
shall be liable for loss thereof. All deposits of the Village are considered insured or
collateralized and therefore are not subject to risk categorization in accordance with GASB
Statement No. 3.
Investments
The Village's selection of investment instruments is governed by Chapters 166.261 and
218.415, Florida Statutes. Under these statutes, authorized investments are limited, unless
otherwise authorized by law or ordinance, to the local government surplus funds trust fund,
direct or unconditionally guaranteed obligations of the United States Government, obligations
of certain governmental agencies, interest bearing time deposits or savings accounts in state
qualified public depositories, and money market funds with the highest credit quality rating.
In addition, retirement funds are authorized to invest in corporate bonds and stocks, money
market funds, mortgages, and notes.
The Village's investments are categorized by type to give an indication of the level of credit
risk assumed by the Village. For financial reporting purposes, levels of risk defined by GASB
Statement No. 3, include category (1) investments that are insured or registered, or for which
the securities are held by the Village or its agent in the Village's name; category (2) uninsured
and unregistered, for which the securities are held by the counter party's trust department or
agent in the Village's name; or category (3) uninsured or unregistered, for which the securities
are held by the counter party, or by its trust department or agent, but not in the Village's name.
Investments that do not meet the above defined risk levels, such as investment pools managed
by other governments or investments in mutual and common collective funds, are disclosed
but not categorized as to their risk because they are not evidenced by securities.
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 and
Exchange Commission (SEC); however, the Board has adopted operating procedures
consistent with the requirements for a 2A -7 fund.
50
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
The Village's investments held at September 30, 2001 are stated at carrying value, which is
equal to fair value and include:
Carrying Amount
U.S. Government obligations
$ 4,334,712
Corporate obligations
1,452,860
Common stock
10,741,439
Cash on hand and with banks
626,185
State Board Investment Pool
4,599,311
Cash with pension trustee
1,269,318
Hurricane FEMA Fund
$23,0231825
Cash, cash equivalents and investments are presented in the combined balance sheet as follows:
Cash and cash equivalents
Pension investments
NOTE 3. RECEIVABLES
$ 5,225,496
17,798,329
$23,023,825
The Village has receivables arising from various taxes and services provided to its residents.
Total receivables amounted to approximately $737,000.
NOTE 4. DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at September 30, 2001 were as follows:
Fund
Receivables
Payables
General Fund
Local Option Gas Tax Fund
$ 436,866
$ 595,026
Grant Fund
604,880
-
Safe Neighborhood Bond Project Fund
-
3,546
Hurricane FEMA Fund
-
96,714
Debt Service Fund
-
23,795
80,481
108,752
Capital Improvement Fund
-
86,717
G.O. Bond Fund
34,317
335,084
Stormwater Fund
100,582
75,795
Sanitation Fund
465,659
329,507
Risk Management Fund
91,016
-
Fleet Maintenance Fund
180,646
General Trust Fund
184,201
-
Police Forfeiture Fund
Police Pension Fund
-
4,376
General Employee Pension Fund
-
25,253
Total
-
$1,941,316
19,419
$1,941,316
-20-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 5. FIXED ASSETS
General Fixed Assets
Changes in general fixed assets during the year are as follows:
Depreciation is not required and has not been provided on general fixed assets
Proprietary Funds Fixed Assets
The following is a summary of proprietary fund type fixed assets:
Stormwater Utility
Sanitation equipment
Less accumulated depreciation
Land
Building
Equipment
Vehicles
Less accumulated depreciation
-21-
Enterprise Funds
September 30,
2001 2000
$320,417
Balance
613,550
576,480
Balance
883,802
September 30,
248,067
$662.510
September 30,
Internal Service
2000
Additions
Deletions
2001
Land
$ 718,531
$ -
$ 7,127
$ 711,404
Buildings
4,021,210
1,114,482
73,240
5,062,452
Improvements other than buildings
3,032,793
252,012
-
3,284,805
Equipment
4,239,129
483,422
1,839,762
2,882,789
Construction in progress
1,940,771
-
1,627,764
313,007
Total
$13.952.434
$1849.916
$3.547,893
$12.254.457
Depreciation is not required and has not been provided on general fixed assets
Proprietary Funds Fixed Assets
The following is a summary of proprietary fund type fixed assets:
Stormwater Utility
Sanitation equipment
Less accumulated depreciation
Land
Building
Equipment
Vehicles
Less accumulated depreciation
-21-
Enterprise Funds
September 30,
2001 2000
$320,417
$307,322
613,550
576,480
933,967
883,802
271,457
248,067
$662.510
$635.067
Internal Service
Funds
September 30,
2001 2000
$ 7,127 $ -
73,240 -
562,592 -
1,476,104 -
2,119,063
1,686,746 -
$ 432317 $--
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, 2001 was comprised of the following:
1999 General Obligation bonds issued via the Florida Municipal Loan Council.
$3,145,000
Principal is due annually over 30 years at various amounts, commencing April 1,
460,000
2000 and ending April 1, 2029. The bonds bear interest at variable rates, 3.2% as of
175,234
September 30, 2000 and are payable semi - annually commencing October 1, 1999.
$3,090,000
Unsecured revenue note payable to a bank; principal and interest due in quarterly
3,789,594
payments of $20,000. Note bears interest at 4.99% per annum, due July 1, 2006.
380,000
Revenue note payable to a bank; principal and interest due in quarterly payments
386,954
of $9,822. Note bears interest at 4.56% per annum, due October 15, 2005. The
$4 595,353
note is collateralized by certain equipment.
151,751
Accrued vacation and sick leave
3,621,751 250,819
Workers' compensation claims payable
386,954
136,532
$4,259,524
Changes in general long -term debt during the year are as follows:
Balance Balance
September 30, September 30,
2000 Additions Reductions 2001
General obligation bond payable
$3,145,000
Revenue note payable
460,000
Revenue note payable
175,234
Capital lease obligations
9,360
Subtotal
3,789,594
Accrued vacation and sick leave
418,805
Workers' compensation claims
386,954
Total
$4 595,353
b. Summary of Future Debt Service Requirements
$ - $ 55,000
$3,090,000
- 80,000
380,000
- 23,483
151,751
- 9,360
-
- 167,843
3,621,751
154,228 322,214
250,819
- -
386,954
$ 154,228 $490,057
$4 2
The annual debt service requirements to maturity for all long -term debt are as follows:
Fiscal year ending September 30:
Principal
Interest
Total
2002
2003
$ 175,699
$ 169,314
$ 345,013
2004
174,884
161,584
336,468
2005
176,502
153,752
330,254
2006
183,652
147,193
330,845
Thereafter
Tereafter
136,532
267,546
2,780,000
1,934,448
4,714,448
$3,621,751
$2,702,823
$6,324,574
-22-
N-ILiMl SHORES VILLAGE, FLORIDA
NOTES'TO T' NERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7. COMMITMENTS AND CONTINGENCIES
a. Legal Matters
The Village has severa'i 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 o;r 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 V151,956 as of September 30, 2001. The claim 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.
e. Construction Commitments
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, 2001, approximately $350,000 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.
The Village has a contract with a contractor for approximately $375,000 for work on the
Brockway Memorial Library Expansion Project. Construction began during October 2002.
-23-
MIAMI SHORES VILLAGE, FL ORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 8. SEGMENT INFORMATION — ENTERPRISE FUNDS
The Village maintains two enterprise funds. The Storm water Utility Fund accounts for the
operation and maintenance of the Village's stormwater syste.m. The Sanitation Fund accounts for
the operation and maintenance of the Village's sanitation sSistem, which includes waste pickup
and disposal. Selected segment information for the year ended September 30, 2001 is as follows:
Charges for services
Depreciation
Operating income (loss)
Operating transfers out
Net income (loss)
Fixed asset additions
Net working capital
Total assets
Retained earnings
NOTE 9. POST - RETIREMENTS BENEFITS
Plan Description
Stormw�ater Sanitation
Utility F Fund Total
138,648 91,681,589 $1,820,237
7,847
14,875
22,722
(234,160)
344727
110,567
(53,500)
(105,500)
� 159,000)
(282,366)
242,986
(39,3;°��l
13,095
37,070
50,165
34,875
172,818
207,693
448,669
1,486,457
1,93 5,126
332,079
538,124
870,203
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.
-24-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9. POST - RETIREMENTS BENEFITS (Continued)
Plan Description (Continued)
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 2001 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, 2001. Employee and employer contributions are adjusted based on
periodic actuarial review.
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
At September 30, 2001, there were 33 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 $7,000 including employee contributions. As of September 30, 2001, the
Plan had net assets of approximately $74,000 available for benefits and no liabilities.
NOTE 10. 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:
2001
2000
Unpaid claims, beginning
$ 592,000
$ 722,949
Incurred claims (including IBNR's)
20,807
93,629
Claim payments and disbursements
(169,742
(224,578
Unpaid claims, ending
$ 443,065
$ 592,000
-25-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. EMPLOYEE RETIREMENT SYSTEM
The Village maintains two separate single- employer Public Employee Retirement Systems
(PERS). These plans were 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 pension trust fund.
Summary of Significant Account Policies
Basis of Accounting
The Village's defined benefit pension funds 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 each Plan.
The Village, as the employer, follows the provisions of Governmental Accounting Standards
Board (GASB) Statement No. 27, "Accounting for Pensions by State and Local Governmental
Employers ". GASB No. 27 establishes standards for the measurement, recognition, and
display of pension expense and related pension liabilities, pension assets, note disclosures and
required supplementary information.
The Plans follow the provisions of GASB Statement No. 25, "Financial Reporting For
Defined Benefit Pension Plans and Note Disclosures For Defined Contribution Plans ".
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 each of the three Plans, investment policy is determined
by the Plans' Board of Trustees and is implemented by each Plan's investment advisor.
There were no investments (other than U.S. Government Securities and U.S. Government
Guaranteed Obligations) in any one organization that represented 5% or more of plan net
assets, nor were there any investments in, loans to, or leases with any Village official, Plan
Trustee or other related parties.
a. General Employees' Retirement Plan
Plan Description
The General Employees' Retirement System (the Plan) is a single - employer defined benefit
pension plan that covers all Village employees, except for police, and certain appointed
employees and elected officials. The Plan was established as of the effective date of January
1, 1957 by the Village Council. It was amended on December 31, 1999, to split the Plan
-26-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. EMPLOYEE RETIREMENT SYSTEM (Continued)
a. General Employees' Retirement Plan (Continued)
Plan Description (Continued)
between General Employees and Police. The Plan is also governed by certain provisions of
Chapter 112, Florida Statutes. The Board of Trustees for the Plan administers the Plan.
The Plan provides retirement, disability, and death benefits to Plan members and
beneficiaries. The Plan does not issue a separate financial report.
Funding Policy
Plan members are required to contribute 6% of their annual covered salary. The Village is
not required to contribute to the plan.
Annual Pension Cost and Net Pension Obligation
The annual required contributions for the current year were determined as part of the
October 1, 2000 actuarial valuation using the frozen entry age actuarial cost method. The
actuarial assumptions included (a) 8% investment rate of return and (b) projected salary
increase of 5.5% 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 values.
Three -Year Trend Information
Annual Pension Percentage of Net Pension
Fiscal Year Ending Cost (APC) APC Contributed Asset
9/30/98 $253,370
9/30/99 218,478
9/30/00 210,634
b. Police Officers' Retirement Plan
Plan Description
100% $ (1)
100 (1,752)
100 (19,514)
The Police Officers' Retirement System (the Plan) is a single - employer defined benefit
pension plan that covers substantially all of the Village's certified police officers. The Plan
was established as of the effective date of January 1, 1957 by the Village Council. It was
amended on December 31, 1999, to split the Plan between General Employees and Police.
The Plan is also governed by certain provisions of Chapter 185, Florida Statutes. The
Board of Trustees for the Plan administers the Plan.
The Plan provides retirement, disability, and death benefits to Plan members and
beneficiaries. The Plan does not issue a separate financial report.
-27-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. EMPLOYEE RETIREMENT SYSTEM (Continued)
b. Police Officers' Retirement Plan (Continued)
Funding Policy
Plan members are required to contribute 9% of their annual covered salary. The State of
Florida contributes a portion of the property insurance premiums, which pass through the
Village as contributions to the Plan. The Village is required to contribute at actuarially
determined rates that are designed to accumulate sufficient assets to pay benefits when due.
Annual Pension Cost and Net Pension Obligation
As of October 1, 1997 (date of transition), the Village did not have a net pension
obligation. As of September 30, 2000, 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, 2000 actuarial valuation using the entry age normal actuarial cost method. The
actuarial assumptions included (a) 8% investment rate of return and (b) projected salary
increases of 6.5% per year. Both (a) and (b) included an inflation component of 4 %. The
actuarial value of assets was determined using market values. Contributions by the Village
during fiscal years 1998, 1999 and 2000 exceeded the Annual Pension Cost. Those
amounts were applied to the Village contribution obligation in the subsequent years.
c. Membership
Membership of each Plan consisted of the following at October 1, 2000, the dates of the
latest actuarial valuations:
Three -Year Trend Information
Employees Police
Annual Pension
Percentage of
Net Pension
Fiscal Year Ending
Cost (APC)
APC Contributed
Asset
Fully vested
9/30/98
$253,370
100%
$ (1)
9/30/99
218,478
100.8
(1,752)
9/30/00
210,634
108.4
(19,514)
c. Membership
Membership of each Plan consisted of the following at October 1, 2000, the dates of the
latest actuarial valuations:
-28-
General
Employees Police
Retirees and beneficiaries currently receiving benefits and
terminated employees entitled to benefits but not yet
receiving them
35 15
Active employees:
Fully vested
56 27
Non - vested
5 _
61 27
-28-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. EMPLOYEE RETIREMENT SYSTEM (Continued)
d. Required Supplementary Information
The schedule of funding progress and schedule of employer contributions for each of the past
six consecutive fiscal years for the two Plans are presented immediately after the notes to the
general purpose financial statements.
Basis of Accounting
The Village's Employees' Retirement Systems financial statements are prepared using the
accrual basis of accounting. Plan member contributions are recognized in the period in which
the contributions are due. Employer contributions to each plan are recognized when due and
the employer has made a formal commitment to provide the contributions. Benefits and
refunds are recognized when due and payable in accordance with the terms of the Plan.
Method Used to Value Investments
Investments are reported at fair value. Securities traded on a national or international
exchange are valued at the last reported sales price. Net appreciation (depreciation) in fair
value of investments, realized and unrealized gains (losses) are determined on the basis of
specific cost.
X31
REQUIRED SUPPLEMENTARY INFORMATION
-30-
MIAMI SHORES VILLAGE, FLORIDA
PENSION
TRUST FUNDS
SCHEDULE
OF FUNDING PROGRESS
Combined Plan
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
U
Lb)
kb-a
fa/b
U
L--a /c
10/1/94 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)
General Employee's
Pension System
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
U
I kw
(b -a
�)
U
(b -a)/c
10 /1 /01
$ 6,058,274
$ 4,273,276
$ (1,784,998)
141.8%
$ 2,069,505
-86%
Police Officer's Retirement System
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
La)
fw
&-a)
"
L0
&- —a /c
10/1/01
$ 9,672,236
$ 9,116,194
$ (556,042)
106.1%
$ 1,449,586
-38.4%
-30-
MIAMI SHORES VILLAGE, FLORIDA
PENSION TRUST FUNDS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
NOW[ 0W- atvFTiI
Year
Annual
Contribution
Contribution
Ended
Required
from
from
Percentage
September 30.
Contribution
Employer
Contributed
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
General Employee's Pension
System
Year
Annual
Contribution
Contribution
Ended
Required
from
from
Percentage
September 30.
Contribution
Employe r
State
Contributed
2001
$ 173,321
$ 173,321
N/A
100+
Police Officer's Retirement System
Year
Annual
Contribution
Contribution
Ended
Required
from
from
Percentage
September 30,
Contribution
Employer
.51=
Contributed
2001
$ 189,485
$ 168,004
$ 38,137
109%
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
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return*
Projected salary increases*
Cost of living adjustments
*Includes inflation at 4%
General Employee's Pension System
10/1/00
Frozen Entry Age
N/A
N/A
5 year smoothed market
Difference between actual and
expected return recognized
8% per year compounded annually,
net of investment related expenses
5.50%
N/A
-31-
Police Officer's Retirement System
10/l/00
Frozen Entry Age
N/A
N/A
5 year smoothed market
Difference between actual and
expected return recognized
8% per year compounded annually,
net of investment related expenses
6.50%
N/A
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP STATEMENTS
AND SCHEDULES
GOVERNMENTAL FUND TYPES
GENERAL FUND
The General Fund is the principal operating fund of the Village and is used to account for
resources traditionally associated with governments, which are not required to be
accounted for in another fund.
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
ASSETS
Cash and cash equivalents
Receivables
Due from other funds
Due from other governments
Prepaid costs
Inventories
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Deferred revenues
Total liabilities
Fund balances:
Reserved for:
Encumbrances
Prepaid costs
Inventories
Aquatic center
Code violations
Unreserved:
Designated for future use
Designated for emergencies and contingencies
Total fund balances
Total liabilities and fund balances
-32-
2001 2000
$ 3,415,302 $ 2,738,504
169,153
51,692
436,866
455,973
48,521
99,071
47,432
26,400
23,289
30,333
$ 4,140,563
$ 3,401,973
$ 100,842 $
103,046
316,156
175,651
595,026
188,226
254,491
90,968
1 766 51 5
557 R91
36,570 136,746
47,432 26,400
23,289 30,333
- 226,595
174,906
1,766,757 1,349,102
1,000,000 900,000
7 R74 OAP 7 Rda ARC
$ 4,140,563 $ 3,401,973
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Excess of revenues over expenditures
and other financing sources (uses) 29,966 275,137
Fund balance, beginning 2,844,082 2,568,945
Fund balance, ending $ 2,874,048 $ 2,844,082
-33-
2001
2000
Revenues:
Taxes
$ 3,152,976
$ 3,092,104
Licenses and permits
355,561
292,917
Intergovernmental revenues
919,339
910,633
Charges for services
671,075
492,005
Fines and forfeitures
290,484
258,611
Miscellaneous revenue
280,756
389,088
Interest
226,593
228,906
Total revenues
5,896,784
5,664,264
Expenditures:
Current:
General government
1,070,889
841,917
Public safety
3,529,091
3,168,647
Public services
975,791
1,063,412
Culture /recreation
2,174,840
1,662,944
Capital outlay
113,650
177,725
Debt service:
Principal
19,806
16,093
Interest
2,963
3,398
Total expenditures
7,887,030
6,934,136
Deficiency of revenues over expenditures
(1,990,246)
(1,269,872)
Other financing sources (uses):
Operating transfers in
2,020,212
1,770,292
Operating transfers out
-
(225,283)
Total other financing sources (uses)
2,020,212
1,545,009
Excess of revenues over expenditures
and other financing sources (uses) 29,966 275,137
Fund balance, beginning 2,844,082 2,568,945
Fund balance, ending $ 2,874,048 $ 2,844,082
-33-
MIAMI SHORES VILLAGE, FLORIDA
GENERALFUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Budgetary
Variances
Budgetary
Basis
Favorable
Basis
Budeet
Actual
(Unfavorable)
Actual
2401
2000
Revenues:
-,. Taxes:
Property taxes, current and delinquent
$ 3,321,427
$ 3,152,976
$ (168,451)
$ 3,092,104
Licenses and permits:
Business licenses
67,200
64,495
(2,705)
61,434
Building permits
145,000
250,341
105,341
175,073
Certificate of reoccupancy
7,500
-
(7,500)
-
Other licenses and permits
47,500
40,725
(6,775)
56,410
Total licenses and permits
267,200
355,561
88,361
292,917
Intergovernmental revenues:
State shared revenues:
Gas tax rebate
7,500
-
(7,500)
-
Cigarette taxes
164,727
-
(164,727)
9,359
State revenue sharing
124,191
228,281
104,090
228,658
Beverage licenses
975
1,007
32
1,057
Local government half cent sales tax
607,500
611,727
4,227
598,312
Department of transportation (landscape maintenance)
17,318
19,901
2,583
17,318
Police extra duty pay
161,823
-
_
_
Alarm billings
15,000
Lot cleaning and maintenance
17,250
_
FEMA Grant
-
-
-
3,005
County shared revenues:
County occupational licenses
22,000
26,214
4,214
25,475
School crossing programs
28,705
32,209
3,504
27,449
Total intergovernmental revenues
1,166,989
919,339
(247,650)
910,633
Charges for services:
Public safety
-
-
134,361
Physical environment
128,346
128,346
-
Transportation
3,843
3,843
25,843
Culture /recreation
456,238
538,886
82,648
331,801
Total charges for services
456,238
671,075
214,837
492,005
Fines and forfeitures:
Court fines and costs
125,380
290,484
165,104
258,611
Other
196,045
(196,045)
_
Total fines and forfeitures
321,425
290,484
(30,941)
258,611
Miscellaneous revenue:
Rents
170,000
175,977
5,977
182,864
Other revenue
93,078
104,779
11,701
206,224
Total miscellaneous revenue
263,078
280,756
17,678
389,088
Interest
366,016
226,593
(139,423)
228,906
Other financing sources:
Appropriated fund balance
275,598
-
(275,598)
-
Operating transfers in
2,068,382
2,020,212
(48,170)
1,770,292
Operating transfers out
-
-
-
(225,283)
2,343,980
2,020,212
(323,768)
1,545,009
Total revenues
$ 8,506,353
$ 7,916,996
$ (589,357)
$ 7,209,273
(Continued)
-34-
-35-
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR
ENDED SEPTEMBER 30, 2000)
Budgetary
Variances Budgetary
Basis
Favorable
Basis
Budaet
Actual (Unfavorable)
Actual
2001
2000
Expenditures:
Current:
General government:
Village council:
Personnel services
$ 5
$ 5 $
- $
5
Operating expenses
6,908
4,082
2,826
3,728
6,913
4,087
2,826
3,733
Village attorney:
Operating expenses
144,165
180,500
(36,335)
149,348
144,165
180,500
(36,335)
149,348
Village manager:
Personnel services
197,649
162,903
34,746
115,921
Operating expenses
50,843
34,867
15,976
5,979
Capital outlay
1,000
-
-
-
249,492
197,770
51,722
121,900
Village clerk:
Personnel services
99,507
99,505
2
87,304
Operating expenses
52,026
36,528
15,498
20,463
Capital outlay
-
-
-
5,499
151,533
136,033
15,500
113,266
Finance:
Personnel services
263,054
267,501
(4,447)
233,112
Operating expenses
100,132
91,479
8,653
72,287
Capital outlay
-
4,935
(4,935)
-
363,186
363,915
(729)
305,399
Other general government:
Non - departmental:
Personnel services
49,030
17,337
31,693
966
Operating expenses
290,227
171,247
118,980
152,804
Capital outlay
-
5,550
(5,550)
1,708
339,257
194,134
145,123
155,478
Total general government 1,254,546
1,076,439
178,107
849,124
-35-
MIAMI SHORES VILLAGE, FLORIDA
GENERALFUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Public safety:
Law enforcement:
Personnel services
Operating expenses
Capital outlay
School crossing guard:
Personnel services
Operating expenses
Building department:
Personnel services
Operating expenses
Code enforcement:
Personnel services
Operating expenses
Capital outlay
Total public safety
Public services:
Public works administration:
Personnel services
Operating expenses
Capital outlay
Street maintenance:
Personnel services
Operating expenses
Capital outlay
Planning and zoning:
Personnel services
Operating expenses
Fleet maintenance:
Personnel services
Operating expenses
Capital outlay
Total public services
-36-
190,441
123,393
- 200
- 314,034
1,133,465 975,791 157,674 1,158,236
(Continued)
Budgetary
Variances
Budgetary
Basis
Favorable
Basis
Budeet
Actual
(Unfavorable)
Actual
40
2000
$ 2,920,872
$ 2,695,914
$ 224,958
$ 2,735,118
457,360
478,183
(20,823)
190,068
26,895
19,860
7,035
10,672
3,405,127
3,193,957
211,170
2,935,858
20,891
-
20,891
-
1,012
1,012
21,903
-
21,903
-
127,114
108,220
18,894
84,700
64,032
91,150
(27,118)
54,049
191,146
199,370
(8,224)
138,749
135,018
141,630
(6,612)
85,043
35,267
13,994
21,273
19,669
170,285
155,624
14,661
104,712
3,788,461
3,548,951
239,510
3,179,319
299,301
280,306
18,995
235,703
98,950
99,753
(803)
59,914
-
863
(863)
-
398,251
380,922
17,329
295,617
187,773
151,368
36,405
160,159
338,424
329,475
8,949
231,869
95,592
-
95,592
94,624
621,789
480,843
140,946
486,652
91,213
89,702
1,511
52,595
22,212
24,324
(2,112)
9,338
113,425
114,026
(601)
61,933
190,441
123,393
- 200
- 314,034
1,133,465 975,791 157,674 1,158,236
(Continued)
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Recreation:
Personnel services 858,040
883,272
Budgetary
Variances
Budgetary
365,799
42,623
Basis
Favorable
Basis
(16,229)
Budeet
Actual
(Unfavorable)
Actual
861,468
2001
2000
Culture /recreation:
216,593
228,807
(12,214)
204,133
Parks:
59,919
29,396
30,523
28,723
Personnel services
$ 263,532
$ 185,360
$ 78,172
$ 290,775
Operating expenses
239,341
294,626
(55,285)
79,622
Capital outlay
63,000
21,500
41,500
5,170
Debt services
22,759
-
22,759
-
588,632
501,486
87,146
375,567
Recreation:
Personnel services 858,040
883,272
(25,232)
600,796
Operating expenses 408,422
365,799
42,623
249,579
Capital outlay 3,356
19,585
(16,229)
11,093
1,269,818
1,268,656
1,162
861,468
Recreation maintenance:
Personnel services
108,173
110,449
(2,276)
102,077
Operating expenses
39,722
43,563
(3,841)
22,310
147,895
154,012
(6,117)
124,387
Library:
Personnel services
216,593
228,807
(12,214)
204,133
Operating expenses
59,919
29,396
30,523
28,723
Capital outlay
47,024
47,155
(131)
48,759
323,536
305,358
18,178
281,615
Community Development:
Personnel services - - - 54,130
Operating expenses - 33,568 (33,568) 30,799
- 33,568 (33,568) 84,929
Total culture /recreation 2,329,881 2,263,080 66,801 1,727,966
Debt service:
Principal - 19,806 (19,806) 16,093
Interest - 2,963 (2,963) 3,398
Total debt service - 22,769 (22,769) 19,491
Total expenditures $ 8,506,353 $ 7,887,030 $ 619,323 $ 6,934,136
-37-
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues that are legally
restricted to expend for a particular purpose.
Excise Tax Fund — This fund accounts for the monthly and semi - annual receipts for
public service taxes and franchise fees.
Local Option Gas Tax Fund — This fund accounts for the revenues and expenditures
related to the six -cent and additional three -cent taxes applied to petroleum products sold
in Miami -Dade County.
Grant Fund — This fund accounts for the revenues and expenditures related to various
grant programs and awards.
Safe Neighborhood Bond Project Fund — This fund accounts for all revenues and
expenditures associated with the Safe Neighborhood Parks Bond Awarded by Miami -
Dade County.
Hurricane Fund — This fund accounts for revenues and expenditures related to storms
receiving disaster declarations from the Federal Emergency Management Agency
(FEMA).
MIAMI SHORES VILLAGE, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2001
-38-
Local
Safe
Option
Neighborhood
Excise
Gas
Bond
Tax
Tax
Grant
Project
Hurricane
Fund
Fund
Fund
Fund
Fund
Totals
ASSETS
Cash and cash equivalents
$ -
$ 2,271
$ -
$ -
$ -
$ 2,271
Receivables
44,129
1,083
-
-
9,570
54,782
Due from other funds
-
604,880
-
-
-
604,880
Due from other governments
-
-
-
96,714
-
96,714
Other assets
-
-
6,900
-
-
6,900
Total assets
$ 44,129
$ 608,234
$ 6,900
$ 96,714
$ 9,570
$ 765,547
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$ -
$ 10,159
$ -
$ -
$ -
$ 10,159
Due to other funds
-
-
3,546
96,714
80,481
180,741
Total liabilities
-
10,159
3,546
96,714
80,481
190,900
Fund balances:
Unreserved (deficit)
44,129
598,075
3,354
-
(70,911)
574,647
Total fund balances (deficit)
44,129
598,075
3,354
-
(70,911)
574,647
Total liabilities and fund balances
$ 44,129
$ 608,234
$ 6,900
$ 96,714
$ 9,570
$ 765,547
-38-
MIAMI SHORES VILLAGE, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2001
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
Safe
Neighborhood
Bond
Project
Fund
Excise
Gas
- 1,665
Tax
Tax
Grant
Fund
Fund
Fun
$ 556,312
$ -
$ - $
1,060,176
-
-
-
256,435
-
-
-
134,564
-
11,487
-
1,616,488
267,922
134,564
80,574 14,860
- 7,125
80,574 21,985
Hurricane
Fund Totals
- $ - $ 556,312
- 1,060,176
- 256,435
96,714 10,933 242,211
- - 11,487
96,714 10,933 2,126,621
96,714 15,778
207,926
- 1,665
8,790
96,714 17,443
216,716
1,616,488 187,348 112,579 - (6,510) 1,909,905
(1,817,792) - - - - (1,817,792)
(1,817,792) - - - - (1,817,792)
(201,304)
187,348
112,579
- (6,510)
92,113
245,433
410,727
(109,225)
- (64,401)
482,534
$ 44,129
$ 598,075
$ 3,354 $
- $ (70,911) $
574,647
-39-
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CAPITAL PROJECTS FUNDS
The capital projects funds account for financial resources used for acquisitions and
improvements to capital facilities.
Capital Improvement Fund — This fund is used to account for major capital acquisitions
and projects to improve the Village.
1999 General Obligation Bond Fund - This fund is used to account for the construction
of the aquatic center funded by issuance of general obligation bonds through the Florida
Municipal Loan Council.
MIAMI SHORES VILLAGE, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
ASSETS
Cash and cash equivalents
Cash with fiscal agent
Due from other funds
Bond issue costs
Other assets
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Fund equity:
Reserved for:
Recreation department
Waste department
Unreserved:
Designated for capital outlay (deficiency)
Total fund balances (deficit)
Total liabilities and fund balances
-41-
1999
General
Capital Obligation
Improvement Bond Totals
Fund Fund 2001 2000
$ 157,624 $ 313,007
$ 470,631
$ 314,328
- -
-
1,179,340
- 34,317
34,317
56,225
- 46,240
46,240
61,653
6,540 -
6,540
27,319
$ 164,164 $ 393,564
$ 557,728
$ 1,638,865
$ 10,929
$ 309,993
$ 320,922 $
137,622
86,717
335,084
421,801
27,319
97,646
645,077
742,723
164,941
294,706
- - - 123,500
66,518
(251,513)
(184,995)
1,055,718
66,518
(251,513)
(184,995)
1,473,924
$ 164,164
$ 393,564
$ 557,728
$ 1,638,865
PROPRIETARY FUND TYPES
MIAMI SHORES VILLAGE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Stormwater
Utility Sanitation Totals
Fund Fund 2001 2000
Charges for services $ 138,648 $ 1,681,589 $ 1,820,237 $ 1,758,132
Operating expenses:
Administrative and general
312,190
664,582
976,772
540,214
Personnel expenses
50,443
611,398
661,841
725,797
Depreciation
7,847
14,875
22,722
66,784
Contractual services
2,328
46,007
48,335
31,683
Total operating expenses
372,808
1,336,862
1,709,670
1,364,478
Equity transfer in
Operating income (loss)
(234,160)
344,727
110,567
393,654
$ 332,079 $
Non - operating income:
870,203 $
909,583
Interest income
5,294
3,759
9,053
9,378
Other income
-
-
-
1,984
Total non - operating income
5,294
3,759
9,053
11,362
Income (loss) before operating transfers
(228,866)
348,486
119,620
405,016
Operating transfers:
Transfers to other funds
(53,500)
(105,500)
(159,000)
(466,938)
Transfers from other funds
-
-
-
30,000
Total transfers
(53,500)
(105,500)
(159,000)
(436,938)
Net income (loss)
(282,366)
242,986
(39,380)
(31,922)
Retained earnings, beginning
614,445
295,138
909,583
595,349
Equity transfer in
-
-
-
346,156
Retained earnings, ending
$ 332,079 $
538,124 $
870,203 $
909,583
-45-
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENTS OF CASH FLOWS -
ALL ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Due from other funds
Due from other governments
Inventory
Increase (decrease) in:
Accounts payable and accrued liabilities
Due to other funds
Deferred revenue
Net cash provided by (used in) operating activities
Cash flows from non - capital financing activities:
Operating transfers out
Cash flows from capital and related financing activities:
Capital improvements
Cash flows from investing activities:
Interest received
Proceeds from sale of land
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
-46-
Totals
Enterprise Funds (Memorandum Only)
Stormwate Sanitation 22001 2000
$ (234,160) $ 344,727 $ 110,567 $ 393,654
7,847 14,875 22,722 66,784
(28,623)
(100,582)
29,639
38,045
75,795
(212,039)
42,229
(465,659)
1,150
(4,620)
242,037
8,427
183,166
13,606 (525,454)
(566,241) -
29,639 -
1,150 (33,186)
33,425 57,855
317,832 87,470
8,427 559,483
(28,873) 606,606
(53,500) (105,500) (159,000) (466,938)
(13,095) (37,070) (50,165) (56,056)
5,294
3,759
9,053
9,378
-
-
-
31,984
5,294
3,759
9,053
41,362
(273,340)
44,355
(228,985)
124,974
273,340
94,663
368,003
243,029
$ - $ 139,018 $ 139,018 $ 368,003
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided
by one department to other departments of the government on a cost reimbursement
basis.
Risk Management Fund — This fund accounts for the accumulation and allocation of
costs associated with insurance.
Fleet Maintenance Fund — This fund is accounts for all direct and indirect costs to
maintain and operate the Village's vehicles and equipment fleet.
MIAMI SHORES VILLAGE, FLORIDA
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
ASSETS
Cash and cash equivalents
Due from other funds
Inventory
Other assets
Fixed assets
Total assets
LIABILITIES AND EQUITY
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Estimated insurance claims
Total liabilities
Equity:
Retained earnings (deficit)
Total liabilities and equity
Risk Fleet
Management Maintenance
Fund Fund
Totals
2001 2000
$ 364,587 $
147,980
$ 512,567
$ 618,959
91,016
-
91,016
275,696
-
22,979
22,979
-
16,918
-
16,918
19,725
-
432,317
432,317
-
$ 472,521 $
603,276
$ 1,075,797
$ 914,380
$ 39,790 $ 14,204 $ 53,994 $ 21,738
- 8,674 8,674 -
- 180,646 180,646 276,787
453,446 - 453,446 592,000
493,236 203,524 696,760 890,525
(20,715) 399,752 379,037 23,855
$ 472,521 $ 603,276 $ 1,075,797 $ 914,380
-47-
MIAMI SHORES VILLAGE, FLORIDA
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
-48-
Risk
Fleet
Management
Maintenance
Totals
Fund
Fund
2001
2000
Charges for services
$ 622,207
$ 419,686
$ 1,041,893
$ 275,696
Operating expenses:
Insurance premiums
403,267
-
403,267
260,472
Claims
169,741
-
169,741
93,629
Administrative and general
118,093
236,268
354,361
84,307
Depreciation
-
137,001
137,001
-
Total operating expenses
691,101
373,269
1,064,370
438,408
Operating income (loss)
(68,894)
46,417
(22,477)
(162,712)
Non - operating income:
Interest income
24,324
-
24,324
41,402
Other income
-
-
-
14,647
Total non - operating income
24,324
-
24,324
56,049
Income (loss) before operating transfers
(44,570)
46,417
1,847
(106,663)
Operating transfers:
Transfers to other funds
-
-
-
(30,000)
Transfers from other funds
-
-
-
130,518
Total transfers
-
-
-
100,518
Net income (loss)
(44,570)
46,417
1,847
(6,145)
Retained earnings, beginning
23,855
-
23,855
30,000
Equity transfer in
-
353,335
353,335
-
Retained earnings (deficit), ending
$ (20,715)
$ 399,752
$ 379,037
$ 23,855
-48-
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENTS OF CASH FLOWS -
ALL INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Cash flows from operating activities:
Operating income (loss)
Depreciation
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Due from other funds
Prepaid expenses
Increase (decrease) in:
Accounts payable and accrued liabilities
Estimated insurance claims
Due to other funds
Net cash provided by (used in)
operating activities
Cash flows from capital and related financing activities:
Capital improvements
Cash flows from non - capital financing activities:
Operating transfers in
Cash flows from investing activities:
Interest received
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
-49-
Internal Service Totals
Funds (Memorandum Only)
Risk Fleet
Manaaemen Services 2001 2000
$ (68,894) $ 46,417 $ (22,477) $ (162,712)
- 137,001 137,001 -
(310)
(22,979)
(23,289)
-
184,680
-
184,680
(275,696)
3,117
-
3,117
(19,725)
18,052
22,878
40,930
6,414
(138,554)
-
(138,554)
(130,949)
(276,787)
180,646
(96,141)
276,787
(278,696)
363,963
85,267
(305,881)
(215,983) (215,983) -
130,518
24,324 - 24,324 56,049
(254,372) 147,980 (106,392) (119,314)
618,959 - 618,959 738,273
$ 364,587 $ 147,980 $ 512,567 $ 618,959
FIDUCIARY FUND TYPE
TRUST AND AGENCY FUNDS
These funds account for assets held by the Village in a trustee capacity or as an agent for
employees, other governments and/or other funds.
Expendable Trust Funds:
General Trust Fund — To account for the use of specific designated resources.
Law Enforcement Training Trust Fund — To account for proceeds obtained through
fines designated specifically for training law enforcement officers.
Police Forfeiture Fund — To account for proceeds obtained through the sale of
confiscated and unclaimed property turned over to the Village through court
judgments. Proceeds are to be used solely for law enforcement purposes.
Brockway Memorial Library Trust Fund — To account for donations and other
receipts from private sources that will be used for the Brockway Memorial Library
Expansion Project. Proceeds are reserved for capital outlay purposes only.
Police Insurance Trust Fund — To accumulate resources on behalf of police
personnel to partially cover retirement health insurance.
Pension Trust Funds:
General Employees Retirement System — To account for the accumulation of
resources for pension benefit payments to employees, other than police, who have
retired from Miami Shores Village.
Police Officers Retirement System — To account for the accumulation of resources
for pension benefit payments to police officers who have retired from Miami Shores
Village.
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MIAMI SHORES VILLAGE, FLORIDA
EXPENDABLE TRUST FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2000)
Revenues:
Fines and forfeitures
Contributions
Interest
Confiscated property
Total revenues
Expenditures:
Current:
Public safety
Culture /recreation
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources:
Operating transfers in /(out)
Total other financing sources
Excess (deficiency) of revenues
over expenditures and other
financing sources
Fund balances, beginning
Fund balances (deficit), ending
Law Brockway
Enforcement Memorial Police
General Training Police Library Insurance Totals
Trust Trust Forfeiture Trust Trust 2001 2004
$ - $ - $ - $ - $ - $ - $ 20,649
27,906 3,145 - - 4,561 35,612 5,889
- - 21,104 5,267 - 26,371 26,847
- 145,929 - - 145,929 108,313
27,906 3,145 167,033 5,267 4,561 207,912 161,698
13,512 2,331 262,740 8,840 - 287,423 162,019
- - - - - - 3,888
13,512 2,331 262,740 8,840 - 287,423 165,907
14,394 814 (95,707) (3,573) 4,561 (79,511) (4,209)
(20,097) - - - - (20,097) 34,765
(20,097) - - - (20,097) 34,765
(5,703)
814
(95,707)
(3,573) 4,561
(99,608)
30,556
56,772
4,442
415,101
- 69,428
545,743
515,187
$ 51,069 $
5,256
$ 319,394 $
(3,573) $ 73,989
$ 446,135
$ 545,743
-51-
MIAMI SHORES VILLAGE, FLORIDA
PENSION TRUST FUNDS
COMPARATIVE STATEMENTS OF PLAN NET ASSETS
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
ASSETS
Cash and cash equivalents
Cash with pension trustee
Investments
Due from other governments
Total assets
LIABILITIES AND NET ASSETS HELD
IN TRUST FOR PENSION BENEFIT
Liabilities:
Accounts payable
Due to other funds
Total liabilities
Net assets held in trust for pension benefits
-52-
General
Police Employee's
Pension Pension
Fund Fund
10,377,651 7,420,678
38,137 -
10,415,788 7,420,678
Totals
2001 2000
$ 5,244,608
48,391
17,798,329 12,987,589
5,695
5,107
10,802
27,500
25,253
19,419
44,672
566
30,948
24,526
55,474
28,066
$ 10,384,840
$ 7,396,152
$ 17,780,992
$ 18,252,713
GENERAL FIXED ASSETS
ACCOUNT GROUP
To account for fixed assets other than those accounted for in Proprietary Funds or Trust
Funds.
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULES OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 2001
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 2000)
General fixed assets:
Land
Buildings
Improvements other than buildings
Equipment
Construction in progress
Total general fixed assets
Investment in general fixed assets:
General fund
Special revenue fund
Capital projects fund
Aquatic Facility
Country Club
Gifts and donations
Confiscated property
Insurance fund
Total investment in general fixed assets
-53-
2001 2000
$ 711,404 $ 718,531
5,062,453 4,021,210
3,284,805 3,032,793
2,882,789 4,239,129
313.007 1.940 771
$ 12,254,458 $ 13,952,434
$ 3,218,602
4,430,833
150,173
1,940,771
1,820,517
53,283
623,002
17.277
$ 5,051,819
4,422,042
23,723
1,940,771
1,820,517
53,283
623,002
17.277
$ 12,254,458 $ 13,952,434
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MIAIVII SHORES VILLAGE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 2001
Culture /recreation:
Parks and recreation
Balance
82,070 74,124
2,172,139
Balance
697,079
September 30,
708,529
Aquatic Facility
September 30,
- -
2000
Additions
Deletions
2001
General government:
Total culture /recreation
6,622,560
93,520 74,124
6,641,956
Finance and administrative
$ 844,182
$ 67,420
$ 163,498
$ 748,104
allocated to functions
$ 13,952,434
$ 222,153 $ 1,920,129 $
Public safety - police
2,974,846
26,985
610,733
2,391,098
Public services - public works
3,510,846
34,228
1,071,774
2,473,300
Culture /recreation:
Parks and recreation
2,164,193
82,070 74,124
2,172,139
Library
697,079
11,450 -
708,529
Aquatic Facility
1,940,771
- -
1,940,771
Country Club
1,820,517
- -
1,820,517
Total culture /recreation
6,622,560
93,520 74,124
6,641,956
Total general fixed assets
allocated to functions
$ 13,952,434
$ 222,153 $ 1,920,129 $
12,254,458
-55-
STATISTICAL SECTION
MIANII SHORES VILLAGE, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
Includes general fund only (excludes capital outlay).
10'1
Recreation
Fiscal
General
Public
Public
and
Debt
Year
Government
Saf=
Works
Culture
Service
Total
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
2001
1,070,889
3,529,091
1,089,441
2,174,840
22,769
7,887,030
Includes general fund only (excludes capital outlay).
10'1
MIAMI 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 Miscellaneous
1992 $ 3,737,604 $ 133,284 $
1993
4,034,053
161,227
1994
4,044,767
182,425
1995
4,151,583
175,278
1996
4,226,963
218,768
1997
4,285,860
196,806
1998
4,525,306
211,459
1999
3,072,144
231,674
2000
3,092,104
292,917
2001
3,152,976
355,561
883,719
$ 1,826,078
$ 83,401 $
968,227
1,804,167
116,021
1,026,376
1,790,393
158,786
1,097,505
1,902,751
207,611
1,156,703
1,927,433
215,633
1,196,306
2,074,061
207,350
1,203,077
2,304,259
205,237
942,571
2,145,903
111,930
910,633
492,005
258,611
919,339
671,075
290,484
Total
1,069,336
$ 7,733,422
988,830
8,072,525
786,451
7,989,198
772,887
8,307,615
484,328
8,229,828
368,131
8,328,514
370,648
8,819,986
411,006
6,915,228
617,994
5,664,264
507,349
5,896,784
( *) Sanitation services and fees transferred to newly created Enterprise Fund on 10 /01 /00.
-57-
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.
no
% of
Total
Current
% of
Delinquent
Total
Total Tax
Fiscal
Tax
Tax
Levy
Tax
Tax
Collection
Year
Levy
Collection
Collected
Collections
Collections
to Levy
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
3,100,630
3,051,598
98.4%
40,506
3,092,104
99.7%
2001
3,277,996
3,120,081
95.2%
32,895
3,152,976
96.2%
Source: Miami Shores Village Finance Department and Miami -Dade County Property Appraisers Office.
no
MIAMI SHORES VILLAGE, FLORIDA
ASSESSED VALUE OF TAXABLE PROPERTIES
LAST TEN FISCAL YEARS
Source: Miami -Dade County Property Appraisers Office.
-59-
Real
Personal
Property
Property
Centrally
Total
Fiscal
Assessed
Assessed
Assessed
Assessed
Year
Value
Value
Value
Value
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
304,864,072
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
2001
424,016,297
15,878,103
908,240
440,802,640
Source: Miami -Dade County Property Appraisers Office.
-59-
MIAMI SHORES VILLAGE, FLORIDA
PROPERTY TAX LEVIES
LAST TEN FISCAL YEARS
Source: Miami -Dade County Property Appraiser.
-60-
Total
Fiscal
County-
Debt
Tax
Year
Village
Wide
Service
Fire
MDCC
Library
School
State
Levies
1992
7.990
8.118
1.150
2.281
0.750
0.351
9.104
0.600
30.344
1993
9.120
7.305
0.830
2.344
0.750
0.351
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
2001
8.363
6.403
0.515
2.752
-
-
9.617
0.738
28.388
Source: Miami -Dade County Property Appraiser.
-60-
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2001
Taxpayer
Property Location
Boris Moroz/Phil Glassman Trust
Shores Square, Homestead Realty Property:
2,900,000
Second Avenue Properties
Tropical Chevrolet, Inc.
8800 Biscayne Boulevard
Publix Supermarket (Northern Trust)
9046 Biscayne Boulevard
Bujolo, Inc.
Walgreen's Center (9020 Biscayne Boulevard)
Sheila McDonald
I 1 Individual (Rental) Properties
George Bennett
9500 block of N.E. 2nd Avenue:
Commercial and Residential Properties
Ben and Ruth Pumo
1500 N.E. 101st Street
Bank of America, N.A.
9400 Block - 2nd Avenue; 9100 Block
Biscayne Boulevard
Angelo Napolitano Trust
9767 N.E. 13th Avenue
Thomas and Sandra Chaille
1600 N.E. 103rd Street (Residential)
Konover Properties, Inc.
Shores Cinema (9100 Block - N.E. 2nd
Avenue); 9800 Block - N.E. 2nd Avenue
Miami Shores Medical Center, Inc.
9526 N.E. 2nd Avenue
Omar Cassola
9325 North Bayshore Drive
Tsao Investments, Inc.
10500 Biscayne Boulevard
(Miami Shores Motel)
-65-
Assessed Percent of Total
Value Village -Wide
for 2000 Assessment
$ 3,328,497
0.82%
2,907,881
0.71%
2,900,000
0.71%
1,857,565
0.46%
1,582,421
0.39%
1,467,858 0.36%
1,280,516 0.31%
1,267,122
0.31%
1,120,855
0.27%
1,048,156
0.26%
1,022,950
0.25%
1,018,319
0.25%
1,008,770
0.25%
1,000,000 0.25%
$ 22,810,910 5.60%
MIAMI SHORES VILLAGE, FLORIDA
TEN LARGEST PUBLIC AND PRIVATE EMPLOYERS
LOCATED IN MIAMI -DADS COUNTY, FLORIDA
SEPTEMBER 30, 2001
Ten Largest Public Employers
Ten Largest Private Employers
Miami -Dade County Public Schools
33,958
BellSouth, Inc.
7,911
Miami -Dade County, Florida
28,700
University of Miami
7,657
State of Florida
18,143
American Airlines
6,300
United States Government
17,625
Mt. Sinai Medical Center
4,557
Jackson Memorial Hospital
7,396
Florida Power & Light (FPL)
4,001
Parkway Regional Hospital
4,359
Baptist Health Care Systems
3,233
City of Miami, Florida
3,014
Publix Supermarkets
3,115
Florida International University
2,983
Federated Department Stores
3,105
V.A. Medical Center
2,899
Winn -Dixie Supermarkets
2,773
City of Miami Beach, Florida
2,301
Humana Health Care
2,123
Source: The Beacon Council - Research Department
-66-
COMPLIANCE SECTION
Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
Report of Independent Certified Public Accountants on Compliance and oil
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, 2001 and for the year then ended and have issued our report thereon dated January 14,
2002. 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.
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One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305 - 377 -4228 • Fax 305 - 377 -8331
Offices in: Miami Ft. Lauderdale • 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 [lie 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 governmental agencies and is not intended to be and should not be used by anyone other
than these specified parties. However, this report is a matter of public record and its distribution is not
limited.
LAW WN I R R 1 0 01 1 04-11
Miami, Florida
January 14, 2002
'1.x: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, 2001 and for the year then ended and have issued our report thereon dated January 14,
2002. We conducted our audit in accordance with auditing standards generally accepted in the United States
and the standards applicable for financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. We have issued our Report of Independent Certified Public
Accountants on Compliance and on Internal Control over Financial Reporting. Disclosures in this report,
which is dated January 14, 2002, should be considered in conjunction with this management letter.
In connection with our audit of the general purpose financial statements of the Village for the year ended
September 30, 2001, 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)(g):
1. No inaccuracies, shortages, defalcations, and/or violations of laws, rules, regulations and contractual
provisions were reported in the preceding annual financial audit.
2. The Village, during fiscal year 2001, was not in a state of financial emergency as defined by Florida
Statute, Section 218.503 (1).
3. The Village is in compliance with the investment policy of public funds established in Section
218.415 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.
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One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Tel 305 - 377 -4228 • Fax 305 - 377 -8331
Offices in: Miami • Ft. Lauderdale • West Palm Beach a 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 Accountants
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.
7. The annual financial report for the year ended September 30, 2001 has been filed with the
Department of Banking and Finance pursuant to Section 218.32(1)(a), Florida Statutes and is in
agreement with the audited financial statements of the same period.
8. Miami Shores Village, Florida was incorporated by Laws of Florida 15690.
9. During the course of our audit, we applied financial condition assessment procedures pursuant to
Rule 10.566(8). It is management's responsibility to monitor the Village's financial condition, and
our financial condition assessment, which was performed as of the Village fiscal year end, was
based on representations made by management and the review of financial information provided by
the Village. There were no findings regarding deteriorating financial conditions.
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 these specified parties. However, this report is a matter of public record and its
distribution is not limited.
4z,mz G L%'
Miami, Florida
January 14, 2002
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2001
PART I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS
01 -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
Following review by the Village Attorney, it was determined that the Village is not required to modify the
investment policy. During the annual budget cycle, the Administration presents a tentative investment
policy with generalized investment strategies that will be used throughout the year to maximize returns on
surplus working capital. Investments are limited to instruments that do not exceed one fiscal year, do not
jeopardize principal and are treated as liquid (investment periods of six - months or less). Investments are
restricted to bank overnight investments, State Board of Administration, Bank of America Government
Money Market Funds; Certificates of Deposit up to a maximum of one year; and, Commercial Paper with
Fortune 500 companies or better.
The Village's two independent pension funds already have investment strategies approved by each
respective pension board, reviewed annually by the Board in conjunction with the investment manager
(Merrill Lynch), and monitored on a monthly basis to ensure investment compliance with set goals,
objectives and policies.
01 -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.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. COMMENTS AND RECOMMENDATIONS (Continued)
01 -2. Computer System (Continued)
Condition
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, 2001 audit.
Recommendation
We repeat our recommendations 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.
Management Response
During the first and second quarters of fiscal year 2001, the Village set out a request for proposal to
replace the Village's 19 year -old PICK Computer system. During the latter part of the year, the Village
awarded a contract to purchase a new general ledger computer program from Main Street Software
Corporation (Salisbury, Maryland). Concurrent with the software purchase, the Village replaced its old
hardware system, converting from a PICK -based to Windows NT —based operating systems. During the
end of fiscal year 2001 and into 2002, the new hardware was installed and operationalized.
The Village is current in transition, moving into the Main Street System. Beginning April 1, 2002, the
Village will be "live" on Main Street for payroll. The Village's general ledger and accounts payable are
expected to be fully operational by May 1, 2002 and the accounts receivable, fixed assets, and other
subsidiary programs will be operational beginning July 1, 2002. For fiscal year 2002, the Village will
generate year -end general ledger data using the Main Street system.
01 -3. Post Closing Journal Entries
Condition
For the third consecutive year, we noted that none of the post closing journal entries arising as a result of
the previous audit was 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.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. COMMENTS AND RECOMMENDATIONS (Continued)
01 -3. Post Closing Journal Entries (Continued)
Recommendation
We recommend that once the current 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 2001 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, 2001 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 2001 and replace the values of each of the accounts to reflect the final
number on September 30, 2001. The consultant will then take the actual fiscal year 2002 transactions
recorded on the Village's books from October 1, 2001 through the date of the last entry made, adding
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.
The Village continued to use the PICK system for fiscal year ended 2001. Due to the irregularities
associated with the PICK operating system, the Village must close and post the year -end close on or
before the last day of Period 1 of the subsequent fiscal year. Failure to do that erases all transaction and
data records that occurred during the audit years. As such, entries are normally posted prior to the
auditors' fieldwork were necessary to reconcile certain ledger account balances.
With the introduction of Main Street, the Village will have the capability of operating two fiscal years
simultaneously. As such, normal closing entries will be made prior to the generation of auditor
statements and the post closing entries will no longer be required to this extent, with the exception of
normal, post - closing auditors' adjustment entries beginning with the close of fiscal year 2001 -2002.
01 -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.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. COMMENTS AND RECOMMENDATIONS (Continued)
01 -4. Fund Balance Journal Entries (Continued)
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.
Similar to Comment 00 -3, entries to fund balance accounts were recorded to adjust year -end numbers as
well as recording equity transfers associated with the creation of the new fleet maintenance internal
service funds. The Village will adhere to the auditors' recommendation that fund balance entries will be
restricted and used only for absolutely "emergencies ".
01 -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.
Management Response
The Chief Financial Officer has taken the full responsibility to review and analyze each and every entry.
Under no circumstance will entries be posted until the full impact of each component of every journal
entry is understand and that confirmation is provided to ensure that proper accounting principles are used.
01 -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.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. COMMENTS AND RECOMMENDATIONS (Continued)
01 -6. Monthly Account Reconciliations (Continued)
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.
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 Village now reconciles each account within 15 working days from the close of the month (or nearest
thereto) to provide accurate financial information.
01 -7. 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. COMMENTS AND RECOMMENDATIONS (Continued)
01 -7. 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.
The Village Manager and Chief Financial Officers have designed an inventory processing system that
became effective October 1, 2001. The inventory accounts in the General, Enterprise and Internal Service
Funds will be used to acquire stock and, accordingly, when used or applied to assets, will be duly
expensed. Monthly inventory counts and reports will be prepared by each user department/division.
Semi - annual physical counts will be performed by Finance representatives and adjusting entries will be
made to record for application, loss or other reclassifications.
01 -8. 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.
The Village continued to experience serious problems accounting for and recording year -end
compensated absence accruals due to the PICK operating system. As accumulated leave records were
decentralized and manually maintained by each operating department, the Village's finance department
lacked a comprehensive control mechanism to confirm or refute compensated absence account balances.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. COMMENTS AND RECOMMENDATIONS (Continued)
01 -8. Compensated Absences (Continued)
Management Response (Continued)
Main Street (the new software) offers a program that will track user hours by week and generates
comprehensive accumulated leave balance reports. Using the year -end (September 30, 2001) values, as
confirmed by Rachlin Cohen & Holtz LLP, the Village will have "opening balance values" in the new
system for October 1, 2001. These numbers will provide the foundation from which future additions,
subtractions and other adjustments will be made to generate a year -end report that reconciles back to the
general ledger, regardless of the values manually calculated.
01 -9. 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.
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 was scheduled to
begin during the second quarter fiscal year 2000.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART I. COMMENTS AND RECOMMENDATIONS (Continued)
01 -9. Accounting Procedures Manual (Continued)
Management Response (Continued)
The Chief Financial Officer has made a commitment that as a part of the fiscal year 2003 budget cycle, a
comprehensive Accounting Procedures Manual will be designed, developed and implemented. The
document will provide an accurate step -by -step process to perform all accounting tasks.
PART 11. PRIOR YEAR COMMENTS AND RECOMMENDATIONS
00 -1. New Florida Investment Law for Public Funds
See 01 -1. of Current Year Comments and Recommendations.
00 -2. Computer System
See 01 -2. of Current Year Comments and Recommendations.
00 -3. Post Closing Journal Entries
See 01 -3. of Current Year Comments and Recommendations.
00 -4. Fund Balance Journal Entries
See 01 -4. of Current Year Comments and Recommendations.
00 -5. Audit Adjustments
See 01 -5. of Current Year Comments and Recommendations.
00 -6. Monthly Account Reconciliations
See 01 -6. of Current Year Comments and Recommendations.
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.
no
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART 11. PRIOR YEAR COMMENTS AND RECOMMENDATIONS (Continued)
00 -7. Incomplete Bank Reconciliations (Continued)
Condition (Continued)
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.
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.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART 11. PRIOR YEAR COMMENTS AND RECOMMENDATIONS (Continued)
00 -7. Incomplete Bank Reconciliations (Continued)
Management Response (Continued)
The Chief Financial Officer now reviews each component of every month's bank reconciliations and
confirms that any and all adjustments are made to balance the books to statements.
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.
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.
The Chief Financial Officer, along with the Village Comptroller, now reviews all outstanding checks on a
quarterly basis. Checks aged over 90 days are voided and the Village's bankers have amended the inter-
agency control to prohibit payment of checks aged 90 days +.
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.
:1
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART 11. PRIOR YEAR COMMENTS AND RECOMMENDATIONS (Continued)
00 -9. Held Checks (Continued
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.
The Village Manager has issued a directive that prohibits user departments from requesting invoice
payments unless payments are required.
00 -10. Inventory
See 01 -7. of Current Year Comments and Recommendations.
00 -11. Compensated Absences
See 01 -8. of Current Year Comments and Recommendations.
00 -12. Accounting Procedures Manual
See 01 -9. of Current Year 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.
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.
M.
MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART 11. PRIOR YEAR COMMENTS AND RECOMMENDATIONS (Continued)
99 -1. New Pronouncement (Continued)
Management Response (Continued)
The Village will initiate the new GASB 34 reporting requires following the transition into the new Main
Street Software. Main Street is fully compatible with GASB 34 reporting requirements and staff will
continue the necessary training to familiarize and operational the new reporting requirement for fiscal
year 2003.
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.
See updated response at 01 -2.
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 11. PRIOR YEAR COMMENTS AND 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.
The Village Manager has issued a directive that requires all departments to notify the Finance
Department, Chief Financial Officer, of all grant applications from the start. Written notification will also
be provided to finance upon grant award. Special reporting requirements and other specifications of the
individual grants will be disseminated to the Chief Financial Officer to ensure compliance with state
statutes and other cash management requirements.
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.
Recommendation
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.
The Finance Department now makes the monthly adjusting entries to offset the automatic system accruals
posted to the code enforcement revenues. The General Ledger and subordinated revenue statements are
now cash basis and reflect only those revenues that are paid and not accrued.
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