2002FOR THE
FISCAL YEAR
ENDING
SEPTEMBER 30, 2002
COMPREHENSIVE
ANNUAL FINANCIAL
I Pil " 94-1 ?a a
MIAMI SHORES VILLAGE
MIAMI SHORES, FLORIDA
MIAMI SHORES VILLAGE, FLORIDA
GENERAL PURPOSE FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
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:
Schedule of Revenues and Expenditures - Budget and Actual 34 -37
Special Revenue Funds:
Combining Balance Sheet 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 Sheet 41
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 42
Combining Statement of Revenues and Expenditures - Budget and Actual 43
MIAMI SHORES VILLAGE, FLORIDA
TABLE OF CONTENTS
(Continued)
PAGE
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES, Continued
Proprietary Fund Types
Enterprise Funds:
Combining Balance Sheet 44
Combining Statement of Revenues, Expenses and Changes in Retained Earnings 45
Combining Statement of Cash Flows 46
Internal Service Fund:
Combining Balance Sheet 47
Combining Statement of Revenues, Expenses and Changes in Retained Eamings 48
Combining Statement of Cash Flows 49
Fiduciary Fund Types
Trust and Agency Funds:
Combining Balance Sheet - Trust and Agency Funds 50
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Expendable Trust Funds 51
Combining Statement of Revenues, Expenditures and Changes in Net Plan Assets -
Pension Trust Funds 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
PAGE
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
6y,
•
THOMAS J. BENTON
VILLAGE MANAGER
MARK A. MALATAK, CPA
CHIEF FINANCIAL OFFICER
10050 N.E. SECOND AVENUE
MIAMI SHORES. FLORIDA 33 138-2382
TELEPHONE (305) 795 -2207
FAX (305) 756 -8972
April 11, 2003
The Mayor and Members of the Village Council
10050 Northeast Second Avenue
Miami Shores, Florida 33138 -2382
To the Mayor and Members of the Village Council:
In compliance with Florida State Statute Chapter § 11.45 and Chapter § 10.550 of the 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, 2002. 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 ofthe 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 Florida Municipal Corporation providing a wide range of services. These
services include, but are not limited to holding the responsibility to provide comprehensive public safety services,
sanitation and recycling programs, a full -service recreation program, storm water drainage services along with the
construction and maintenance of Village -owned properties (i.e.— streets, sidewalks, right -of -ways, parks and other
municipal properties).
FINANCIAL INFORMATION
The Village Administration is responsible for developing and implementing an internal control structure designed
to ensure that Village assets are protected from loss, theft or abuse. Additionally, staffhas developed policies and
procedures to ensure that adequate controls exist to protect the fiscal integrity of the organization. The internal
0
FY 2001 -2002 Audit Transmittal Letter Aril 11, 2003
control structure is designed to provide reasonable, but not absolute assurance that these objectives are met. The
concept of reasonable assurance recognizes that: 1) the cost of the controls should not exceed the benefits that are
likely to be derived; and 2) that the costs and benefits require routine and ongoing analysis that may be subject to
occasional adjustments identified by management.
Budgetary controls: The Village maintains budgetary controls at line -item levels, ensuring compliance with legal
provisions incorporated into the annual budget appropriation process and related Village Council amendments.
The criteria delineated by 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 includes and appropriates budgets for all operating funds such as the
Village's enterprise fiords (Sanitation and Storm water operations) and its internal service funds for fleet
maintenance and risk management. The control levels at which expenditures cannot legally exceed appropriated
amounts is set at the department level. 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 at its first meeting of each new fiscal year in Budget
Amendment #1. The Village Manager is authorized to transfer budgeted amounts within departments ofany 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: Total revenues received excluding operating transfers -in total $6,140,489; representing a 4.3%
increase over comparable revenues of $5,876,784 reported in the prior year's financial statements. A detailed
revenue analysis of the General Fund follows:
Total Revenue Sources
Source
Amount
Percent
of
Total
Increase
(Decrease)
over 2000-01
Percent of
Increase
(Decrease)
Taxes and fees
$3,404,110
55.4%
$251,134
7.4%
Licenses and permits
396,766
6.5%
61,205
15.4%
Intergovernmental revenues
1,097,231
17.9%
177,892
16.2%
Charges for services
672,946
10.9%
1,871
.28%
Fines & Forfeitures
264,248
4.3%
(26,236)
-9.90/0
Interest Income
211,974
1.5%
(133,379)
- 143.1%
Other Revenues
93,214
3.5%
(68,782)
-32.5%
TOTALS
$6,140,489
100.0%
$263,705
43%
The single, largest General Fund revenue source originated from ad valorem or property tax distributions,
representing 55.4% of total receipts. Ad valorem collections were 7.4% greater last year's collections resulting
from the increased assessed value of real and personal properties within the Village. As with many municipalities
In
FY 2001 -2002 Audit Transmittal Letter April 11, 2003
' J iY9"'•_M� __s�m'�'z.a,S:SS:S�i"'O"
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 nearly an 8% increase, excludes
receipts from those property owners who have not yet paid. When the final hearings for these challenges have
been closed, 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 fiord operations (Sanitation and
Storm water utilities) paid as management fees for direct services and administrative overhead.
Expenditures: Total General Fund Expenditures were $8,287,243 for the fiscal year ended September 30, 2002.
The annual expenditures exceeded operating revenues and transfers -in, resulting in a $166,945 shortfall, for which
unreserved cash was used to offset the variance. For FY 2001 -02, expenditures reported a marginal increase of
4.83% over the prior reporting period, primarily resulting from increased personnel and insurance costs incurred
during the year. Please note that the FY 2001 -2002 Report includes the reclassification of several accounts
which resulted in larger than normal incremental differences. These changes were required to comply with new
reporting criteria established by the GASB 34 pronouncements. The impact is reflected on the chart below —with
particular attention to the General Government and Recreation & Culture categories.
Total Expenditures
Source
Amount
Percent
of Total
Increase
(Decrease)
over 2000 -01
Percent of
Increase
(Decrease)
General Government
$1,706,105
20.59%
$653,216
37.23%
Public Safety
3,340,822
40.31%
(188,269)
-5.64%
Public Works
1,521,791
18.36%
546,000
35.88%
Recreation & Culture
1,643,286
19.83%
(531 -554)
- 32.35%
Capital outlay
58,741
0.71%
58,741
100.000/0
Principal
14,913
0.18%
(121,506)
- 814.77%
Interest
1,585
0.02%
1,585-
100.00%
TOTALS
$8,287,243 1
100.0% 1
$400,213
4.83%
General Government reports the following administrative departments or divisions of the Village: Mayor and
Village Council, Office ofthe Village Manager, Office ofthe Village Clerk, Village Attorney, Planning & Zoning
Division, 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, the Street 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 ofthe Village.
SPECIAL REVENUE FUNDS: Special revenue funds record proceeds from specific revenue sources with
restricted or limited expenditure authorities. There are four (4) funds reported under this section: 1) Excise Tax
Fund; 2) Local Option Gas Tax Fund; 3) Grant Fund; and, 4) Hurricane (or FEMA) Fund. The following
provides a highlight of those transactions reported in each respective fund.
Im
FY 2001 2002 Audit Transmittal Letter Aril 11, 2003
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 the Simplified Telecommunication Taxes, electrical services, water, gas, fuel, oil and other petroleum
products and sanitation or private trash hauling fees.
Local Option Gas Tax Fund [130]— reports the collection of sale tax levies on all gasoline, petroleum or
petroleum - related products sold in Miami -Dade County and allocated proportionately to the Village. The
proceeds received from these sources may only be used to design, develop or maintain Village -owned streets,
sidewalks, streetlights, right-of-ways and easements. Funds received but not spent or obligated during any fiscal
year are transferred to the Undesignated Fund Balance account. Balances may be appropriated by the Village
Council for use in future street, sidewalk or streetlight projects.
Grant Fund [1501— 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 a library equipment grant. The
Finance Department, accordingly, establishes a separate division in the fund to report the costs related to each
respective grant.
Hurricane -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, are submitted for
reimbursement from insurance policies and/or from the Federal Emergency Management Agency (FEMA).
INTERNAL SERVICE FUNDS. For FY 2001 -2002, the Village continued to operate two individual 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 2001-2002, the Village continued to be self - insured. Operating costs include, but were not limited to
actuarially- determined reserve fiord requirements for future obligations; supplemental insurance premiums for
excess coverage exposures for both general liability and workers compensation matters; bond premiums; costs
associated with audit and actuarial services. Complying with 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.
As with many other public and private sector organizations, the continuing costs to provide insurance
premium costs is escalating on an exponential basis. The Village continues to look at alternate methods for
insurance and risk protection. It is critical to ensure that these costs are monitored and that the Village
continues to use professional advise to meet its' risk responsibility.
The Fleet Maintenance Operation, previously an operating division in the general fiord (as an operating division
of the Public Works Department), was created in order to develop and accumulate a capital equipment reserve
fund through annual depreciation contributions. Additionally, the fiord was established to ascertain the true costs
of operating a mechanical maintenance function. The Division is responsible for all vehicles and other equipment,
except those assets that are restricted or considered an asset of the two Village Enterprise Funds or Trust Funds.
-rv-
FY 2001 -2002 Audit Transmittal Letter April 11, 2003
FIDUCIARY OPERATIONS.
General Employees and Police Retirement Systems —the Village administers two pension systems. The General
Employees Retirement System is managed for non - police employees. The Police Retirement System (created 12-
31 -1999) was created in compliance with §175 and §185 Florida Chapter as amended by Public Law 99 -1 and
reports total assets, liabilities and benefits to qualified police officers. Each fund has individual boards oftrustees
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.
OTHER OPERATIONS & FUNDS.
The General FixedAssets 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 require full
disclosure and depreciation ofassetsfor reportingpurposes. The Village has initiated complianceprocesses for
this regulation and will be revised in future year's reports. At the end of the audit period (September 30, 2002),
the total value of assets reported in this account group is $13,079,007 or a seven - percent (7 %) investment increase
in the Village's assets.
The General Long -term DebtAccount 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) outstanding fiscal
obligation for workers' compensation claims with Miami -Dade County; 3) the outstanding balances for notes
payable on the Police Building and Public Works Assets (refinanced in FY 2002 -03); and 4) the outstanding
financial obligations reported for the General Obligation Bond, Series 1999. Total values for this account group
are $228,045; $227,854; $438,203, and $3,060,000 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'h Street and 91s` 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. All other executives and associate positions are appointed by the Village Manager.
The Village, one of the top four most affluent communities in Miami Dade County continues to see considerable
interest in properties and investments. From building permit activities, we find that economic and demographic
changes have occurred. Property values continue to grow at rates that parallel or exceed the average increase on a
county wide basis. Staff identified three primary reasons for this growth trend: 1) the Village holds a key
-v-
FY 2001 -2002 Audit Transmittal Letter April 11, 2003
location to downtown Miami and the Brickell Avenue corridor, requiring less than 15 minutes from home to
office; 2) the Village holds a considerable inventory of individual homes with distinctive and/or unique character;
and 3) the low interest rates have allowed property owners to "buy up" as the costs of fiords falls. This population
transmigration began in mid -1996 and is expected to continue for the next few years.
During the past year, the Village has started several new long -term projects. Some of the key capital projects
currently underway include the Miami Shores Charter High School project, Second Avenue Rehabilitation
Project; and the continued rehabilitation of Grand Concourse. The Recreation Department is in the process of
rehabilitating the Community Center as well as the other on -going infrastructure rehabilitative efforts which is a
high priority for the Village's elected officials and administration.
The Administration continues to make a strong commitment to personal service, productive and technological
advancements. During the year, we have introduced a new on -line web page which continues to improve and will
ultimately link the Village to the world -wide web. Other technologies which were introduced include the new
recreation management program in our Recreation Department. With the department's smart card, participants
will be able to use a debit card system allowing for prepaid access and pay for events and products available at the
various recreational facilities. This new system also allows staffto continually monitor and track customer trends
which changes along with the community demographics. Additionally, new systems have been integrated into our
public safety department allowing our police force to excel with high standards in compliance with the Village's
primary objectives.
OTHER INFORMATION: The State of Florida requires municipalities to prepare annual audited financial
reports. Prepared by the Village's external auditors, the supplemental information contained in the report provides
the 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 Auditing Standards, the Firm made technical comments that have improved the financial
reporting and enhanced the productivity levels of the Village's work force.
Acknowledgments. The preparation of the Comprehensive Annual Financial Re rt (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
enhancing public safety efforts, 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,
MIAM SHORES VILLAGE
THOMAS J. BENTON
Chief Executive Officer
Village Manager
TJB:MAM:
Attachments
_yl_
'Ca.00ca?
MARK A. MALATAK, C.P.A.
Chief Financial Officer
FinanceA3udget Director
VILLAGE CLERK
BARBARA A.ESTEP
PUBLIC WORKS
DIRECTOR
DAVID G. TRAILL
MIAMI SHORES VILLAGE, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2002
MAYOR & COUNCIL
MAYOR WILLIAM "AL" DAVIS
VICE MAYOR GREGORY ULLMAN
COUNCILMAN ROBERT BLUM
COUNCILMAN PROSPERO HERRERA
COUNCILMAN MARK ULMER
VILLAGE MANAGER
THOMAS J. BENTON
CHIEF FINANCIAL
OFFICER
MARK A. MALATAK CPA
RECREATION
DIRECTOR
JERRY ESTEP
BUILDING
DIRECTOR
VACANT
PLANNING & ZONING / CODE
ENFORCEMENT DIRECTOR
ALLYN BERG
VILLAGE ATTORNEY
RICHARD SARAFAN, ESQ.
CHIEF OF
POLICE
RICHARD H. MASTEN
DIRECTOR OF
LIBRARY SERVICES
ELIZABETH ESPER
MIAMI SHORES VILLAGE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 2002
MAYOR
William "Al" Davis
VILLAGE COUNCIL
Gregory Ullman — Vice Mayor
Robert Blum
Prospero Herrera
Mark Ulmer
VILLAGE MANAGER
Thomas J. Benton
CHIEF FINANCIAL OFFICER
Mark A. Malatak, CPA
VILLAGE AUDITORS
Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
VILLAGE CLERK
BARBARA A.ESTEP
PUBLIC WORKS
DIRECTOR
DAVID G. TRAILL
MIAMI SHORES VILLAGE, FLORIDA
ORGANIZATION CHART
APRIL 2003
MAYOR &. COUNCIL
MAYOR JIM McCOY
VICE MAYOR HERTA HOLLY
COUNCILMAN AL DAVIS
COUNCILMAN GREG ULLMAN
COUNCILMAN ED QUINTON
VILLAGE MANAGER
THOMAS J. BENTON
CHIEF FINANCIAL
OFFICER
MARK A. MALATAK, CPA
RECREATION
DIRECTOR
JERRY ESTEP
BUILDING
DIRECTOR
CURTIS CRAIG
PLANNING & ZONING / CODE
ENFORCEMENT DIRECTOR
ALLYN BERG
VILLAGE ATTORNEY
RICHARD SARAFAN, ESQ.
CHIEF OF
POLICE
RICHARD H. MASTEN
DIRECTOR OF
LIBRARY SERVICES
ELIZABETH ESPER
MIANII SHORES VILLAGE, FLORIDA
VILLAGE OFFICIALS
APRIL 2003
MAYOR
Jim McCoy
VILLAGE COUNCIL
Herta Holly — Vice Mayor
William A. Davis
Greg Ullman
Ed Quinton
VILLAGE MANAGER
Thomas J. Benton
CHIEF FINANCIAL OFFICER
Mark A. Malatak, CPA
VILLAGE AUDITORS
Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
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}
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, 2002 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, 2002, and the results of its operations and
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 April 11, 2003 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 page 30 are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements of the Village. Such
information has been subjected to the auditing procedures applied in the audit of the general purpose financial
statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose
financial statements taken as a whole.
The information shown in the statistical section listed in the table of contents has not been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and, accordingly, we express
no opinion thereon.
Miami, Florida
April 11, 2003
-1-
One Southeast Third AN enue, Tenth Floor, Miami, Florida 33131 9 Tel 305- 377 -4225 @ Fax 305 - 377 -5331
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
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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, 2002
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 financing
sources (uses)
Excess (deficiency) of revenues
over expenditures and other
financing sources (uses)
Fund balances (deficit), be&tming,
as previously recorded
Prior period adjustment
Fund balances, as restated
Residual equity transfer in (out)
Fund balances, ending
See notes to general purpose financial statements.
-4-
Governmental
Fiduciary
Fund Tyres
Fund Tvoe
Total
Special
Debt
Capital
Expendable
(Memorandum
General
Revenue
Service
Projects
Trust
On[
$ 3,404,110
$ 2,024,800
$ 246,013
$ -
$ -
$ 5,674,923
396,766
-
-
-
-
396,766
1,097,231
23,234
-
-
-
1,120,465
672,946
-
-
-
-
672,946
264,248
-
-
-
-
264,248
211,974
-
-
156,249
-
368,223
93,214
1,388
1,197
9,123
215,528
320,450
-
-
-
-
252,857
252,857
-
-
-
-
96,352
96,352
6,140,489
2,049,422
247,210
165,372
564,737
9,167,230
1,706,105
157,341
37,493
-
-
1,900,939
3,340,822
-
-
75,845
503,817
3,920,484
1,521,791
-
-
449,603
-
1,971,394
1,643,286
-
-
-
7,395
1,650,681
58,741
10,751
-
-
-
69,492
14,913
-
60,000
29,598
-
104,511
1,585
-
146,904
3,126
-
151,615
8,287,243
168,092
244,397
558,172
511,212
9,769,116
(2,146,754)
1,881,330
2,813
(392,800)
53,525
(601,886)
1,979,809
-
-
502,500
-
2,482,309
(500,000)
(1,704,059)
-
-
(30,000)
(2,234,059)
1,479,809
(1,704,059)
-
502,500
(30,000)
248,250
(666,945)
177,271
2,813
109,700
23,525
(353,636)
2,874,048
574,647
53,332
(1 84,996)
446,135
3,763,166
-
-
-
219,557
-
219,557
2,874,048
574,647
53,332
34,561
446.135
3,982,723
(70,911)
70,911
-
-
-
-
$ 2,136,192
$ 822,829
$ 56,145
$ 144,261
$ 469,660
$ 3,409,530
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, 2002
Operating revenues:
Charges for services
Operating expenses:
Administrative and general
Personnel expenses
Insurance premiums
Claims
Depreciation
Contractual services
Provision for doubtful accounts
Total operating expenses
Operating loss
Non - operating revenues:
Interest income
Other income
Total non - operating revenues
Loss before operating transfers
Operating transfers:
Transfers out
Net loss
Retained earnings, beginning, as previously reported
Prior period adjustment
Retained earnings, as restated
Retained earnings, ending
Internal Total
Enterprise Service (Memorandum
Funds Funds Only)
$ 1,627,335 $ 965,285 $ 2,592,620
855,923
-
855,923
707,919
485,236
1,193,155
-
483,230
483,230
-
205,048
205,048
99,641
180,545
280,186
48,324
-
48,324
293,864
-
293,864
2,005,671
1,354,059
3,359,730
(378,336) (388,774) (767,110)
- 15,257 15,257
8,380 - 8,380
8,380 15,257 23,637
(369,956) (373,517) (743,473)
(248,250) - (248,250)
(618,206) (373,517) (991,723)
870,203 379,037 1,249,240
(142,852) - (142,852)
727,351 379,037 1,106,388
$ 109,145 $ 5,520 $ 114,665
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, 2002
Cash flows from operating activities:
Operating loss
Adjustments to reconcile operating loss to net
cash provided by (used in) operating activities:
Depreciation
Provision for doubtful accounts
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 (used) by
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
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, "ending
(320,063) (84,275)
(248,250) -
(404,338)
(248,250)
8,380 15,257 23,637
- (158,172) (158,172)
139,018 512,566 651,584
$ 139,018 $ 354,394 $ 493,412
See notes to general purpose financial statements.
-7-
Internal
Total
Enterprise
Service
(Memorandum
Funds
Funds
Only)
$ (378,336)
$ (388,774)
$ (767,110)
99,641
180,545
280,186
293,864
-
293,864
28,975
(117,758)
(88,783)
523,308
(982)
522,326
22,261
-
22,261
2,912
-
2,912
-
16,918
16,918
(24,309)
5,779
(18,530)
-
53,219
53,219
(62,719)
161,899
99,180
54,336
-
54,336
559,933
(89,154)
470,779
(320,063) (84,275)
(248,250) -
(404,338)
(248,250)
8,380 15,257 23,637
- (158,172) (158,172)
139,018 512,566 651,584
$ 139,018 $ 354,394 $ 493,412
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, 2002
ADDITIONS
Contributions:
City
Employees
State
Total contributions
Investment income (loss):
Net depreciation in fair value of investments
Interest
Dividends
Less investment expenses
Net investment loss
Total reductions
DEDUCTIONS
Pension benefits
Professional services
Total deductions
Net decrease
Net assets held in trust for pension benefits:
Beginning, as previously reported
Prior period adjustment
Beginning, as restated
Ending
See notes to general purpose financial statements.
-8-
$ 100,215
278,962
39,564
418,741
(2,511,735)
342,075
118,973
(126,780)
(2,177,467)
(1,758,726)
774,000
60,154
834,154
(2,592,880)
17,780,992
(732,240)
17,048,752
$ 14,455,872
! a 1 �, f
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
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. Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the Village are organized and operated on the basis of funds and account
groups. A fund is an independent fiscal and accounting entity with a self - balancing set of
accounts. Fund accounting segregates funds according to their intended purpose and is used to
aid management in demonstrating compliance with finance related legal and contractual
provisions. The minimum number of funds is maintained consistent with legal and managerial
requirements. Account groups are a reporting device to account for certain assets and
liabilities of the governmental funds not recorded directly in those funds. The accounting and
financial reporting treatment applied to a fund is determined by its measurement focus. The
Village maintains the following fund types and account groups:
in
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Governmental Fund TVDeS
Governmental fund types are used to account for the Village's general governmental activities.
Governmental fund types use the flow of financial resources measurement focus and the
modified accrual basis of accounting. Under the modified accrual basis of accounting
revenues are recognized when susceptible to accrual (i.e., when they are measurable and
available). Measurable means the amount of the transaction can be determined and available
means collectable within the current period or soon enough thereafter to pay liabilities of the
current period. The Village considers revenues available if they are earned in the current
period and collected within 60 days of year end. Expenditures are recorded when incurred
except for interest on general long -term debt which is recognized when due and compensated
absences and claims and judgments which are recognized when the obligations are expected to
be paid from expendable available financial resources.
Property taxes, franchise fees and utility taxes, licenses, interest, sales taxes and special
assessments are susceptible to accrual. Other revenues become measurable and available when
the Village receives cash. Entitlements and shared revenues are recorded at time of receipt or
earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized
as revenue when the qualifying expenditures have been incurred and all other grant
requirements have been met. Governmental funds include the following fund types:
The general fund is the Village's primary operating fund. It accounts for all financial
resources of the Village, except those required to be accounted for in another fund. Resources
are derived primarily from property taxes, franchise fees and utility taxes, charges for services
and intergovernmental revenues. Expenditures are incurred to provide general government,
public safety, public works and community services.
The special revenue funds account for revenue sources that are legally restricted to
expenditures for specific purposes (not including major capital projects). The Village has four
special revenue funds: Excise Tax Fund, Local Option Gas Tax Fund, Grant Fund and
Hurricane Fund.
The debt service fund accounts for the servicing of general long -term debt not being financed
by proprietary funds.
The capital projects funds are used to account for financial resources to be used for the
acquisition of equipment and construction of capital facilities. The Village maintains two
capital projects funds: Capital Improvement Fund and the 1999 General Obligation Bond
Fund.
Proprietary Fund Types
Proprietary fund types are accounted for on the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded
-10-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Proprietary Fund Types (Continued)
when earned and expenses are recorded when liabilities are incurred. The City applies all
applicable pronouncements of the Financial Accounting Standards Board issued on or before
November 30, 1989, unless those pronouncements conflict with or are contradicted by
Governmental Accounting Standards Board (GASB) pronouncements.
Proprietary funds include the following 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 Tvnes
Fiduciary funds account for assets held by the government in a trustee capacity or as an agent
on behalf of others. Trust funds account for assets held by the government under the terms of
a formal trust agreement.
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.
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 or trust funds. The general long -term debt account group is used to account for
general long -term debt and certain other liabilities that are not specific liabilities of proprietary
or trust funds.
-11-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3. 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.
4. 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.
5. 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 ".
6. 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.
7. General Fixed Assets
Fixed assets used in governmental fund types are recorded as expenditures at the time of
purchase. Such assets are capitalized at historical cost in the general fixed assets account
group. Certain public domain (infrastructure) general fixed assets, consisting of roads, curbs
and gutters, and lighting systems are included in general fixed assets. Donated fixed assets are
recorded in the general fixed assets account group at their fair market value at the date
donated. Assets related to the golf and country club represent the contractually required
capital investments made annually by the operator, PCM III. Depreciation is not required and
has not been provided on general fixed assets.
8. Proprietary Fund Fixed Assets
Fixed assets are stated at cost or, if donated, at fair market value at the date of donation.
Expenses, which materially extend the useful life of existing assets, are capitalized. The cost
of property sold or retired, together with the related accumulated depreciation, is removed
from the appropriate accounts and any resulting gain or loss is included in net income.
-12-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
8. Proprietary Fund Fixed Assets (Continued)
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
9. 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
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.
10. Long -Term Obligations
The Village reports long -term debt of governmental funds at face value in the general long-
term debt account group. Certain other governmental fund obligations not expected to be
financed with current available financial resources are also reported in the general long -term
debt account group.
11. Deferred Revenues
Revenues collected in advance are deferred and recognized as income in the period earned. In
the general fund, deferred revenues consist primarily of occupational licenses and refuse
collection fees received in advance that have been budgeted to pay expenditures of the
subsequent fiscal year.
-13-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
12. Encumbrances
Encumbrances are recorded at the time a purchase order or other commitment is executed.
Encumbrances outstanding at year -end represent the estimated amount of expenditures on
unperformed purchase orders and other commitments outstanding. Appropriations lapse 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.
13. Reserves and Designations
Reservations of fund balance /retained earnings represent amounts that are not available for
appropriation or are legally segregated for a specific future use. The description of each
reserve indicates the purpose for which each was intended.
Designations of fund balance indicate that a portion of fund balance has been segregated based
on previous fiscal obligations or tentative plans of the Village. Such plans or intent are subject
to change at the discretion of the Village.
Unreserved undesignated fund balance is the portion of fund equity available for any lawful
use.
14. 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, 2002 was 7.750 for general operating and .515 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.
-14-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
14. Property Taxes
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 1 st of the year following the year in which taxes were assessed.
Procedures for the collection of delinquent taxes by Miami -Dade County are provided for in
the laws of Florida.
15. Budgets and Budgetary Accounting
Annual appropriated budgets are adopted for the General Fund, three of the four special
revenue funds (Excise Tax Fund, Local Option Gas Tax Fund and Grant Fund), the Debt
Service Fund and the Capital Projects Funds (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 2002.
e) Formal budgetary integration is employed as a management control device during the
year for the general fund, certain special revenue funds, debt service fund and capital
projects fund.
-15-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
15. Budgets and Budgetary Accounting (Continued)
f) Budgets for the general fund, certain special revenue funds, debt service fund 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. Excess Expenditures over Appropriations
The Village had the following expenditures which exceeded appropriations at September 30,
2002. The over expenditures were funded by available fund balance.
General Fund:
Debt service $ 16,498
Debt Service Fund $ 11,619
17. Deficit Fund Balances / Retained Earnings
The Risk Management Internal Service Fund had a deficit fund balance of ($252,056) as of
September 30, 2002. The Village plans to increase its charges for services to the other
departments to recover the costs.
The Brockway Memorial Library Expendable Trust Fund had a deficit fund balance of
($9,588) as of September 30, 2002. The Village expects to have donations in excess of
expenditures during fiscal year 2003 that will cover the deficit.
18. 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.
-16-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
18. Interfund Transfers (Continued)
• Legally authorized operating transfers from a fund receiving revenue to the fund through
which the resources are expended.
19. 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.
20. Memorandum Only - Total Columns
Total columns on the combined financial statements which are captioned "Memorandum
Only" aggregate the columnar amounts presented by fund type and account group and are
presented only to facilitate financial analysis. Data in these columns do not present financial
position, results of operations, or cash flows in conformity with generally accepted accounting
principles nor is such data comparable to a consolidation. Interfund eliminations have not
been made in the aggregation of this data.
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
Deposits of the Village, including demand deposit accounts, are defined as public deposits. In
addition to the insurance provided by the Federal Depository Insurance Corporation, 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.
Accordingly, all deposits are deemed to be insured or collateralized and therefore not subject
to classification by risk category under the provisions of 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
-17-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
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.
The Village's investments held at September 30, 2002 are stated at carrying value, which is
equal to fair value and include:
Category 1
Common stock $ 8,063,732
U.S. Government obligations 3,950,990
Corporate obligations 2,030,366
Repurchase agreements 498,318
Total investments 14,543,406
Investments not subject to risk categorization:
State Board Investment Pool 1,681,802
$ 16,225,208
-18-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Cateory 1
Cash and cash equivalents:
Investments $ 16,225,208
Money market investments 933,480
Bank deposits /demand accounts 1,620,362
Total cash and cash equivalents $ 18,779,050
Per combined balance sheet:
Cash and cash equivalents $ 4,733,962
Pension investments 14,045,088
$ 18,779,050
NOTE 3. RECEIVABLES
The Village has receivables arising from various taxes and services provided to its residents.
Total receivables amounted to approximately $573,000.
NOTE 4. DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at September 30, 2002 were as follows:
Fund
Receivables
Pavables
General Fund
$ 629,602
$ 128,346
Local Option Gas Tax Fund
593,800
-
Grant Fund
-
22,936
Debt Service Fund
23,795
93,216
Capital Improvement Fund
85,413
86,716
G. 0. Bond Fund
34,317
335,084
Stormwater Fund
42,933
75,796
Sanitation Fund
-
266,788
Risk Management Fund
91,998
129,135
Fleet Maintenance Fund
-
213,410
General Trust Fund
155,417
1,215
Police Forfeiture Fund
-
6,812
Brockway Memorial Library Trust Fund
-
253,148
Police Pension Fund
-
25,254
General Employee Pension Fund
-
19,419
Total
$ 1,657,275
$ 1,657,275
-19-
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:
Land
Buildings
Improvements other than buildings
Equipment
Construction in progress
Total
Balance
$ 7,127
Balance
September 30,
Equipment
September 30,
2001
Additions
Deletions 2002
2,203,338
$ 711,404
$ -
$ - $ 711,404
5,062,452
327,901
- 5,390,353
3,284,805
174,026
- 3,458,831
2,882,789
322,623
- 3,205,412
313,007
-
- 313,007
$ 12,254,457
$ 824,550
$ - $ 13,079,007
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 at September 30, 2002:
Enterprise Funds
Stormwater utility $ 320,417
Sanitation equipment 933,612
1,254,029
Less accumulated depreciation 513,950
$ 740,079
Internal Service Funds
Land
$ 7,127
Building
73,240
Equipment
1,848,862
Vehicles
274,109
2,203,338
Less accumulated depreciation
1,867,291
$ 336,047
-20-
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, 2002 was comprised of the following:
1999 General Obligation bonds issued via the Florida Municipal Loan Council.
Principal is due annually over 30 years at various amounts, commencing April 1,
2000 and ending April 1, 2029. The bonds bear interest at variable rates ranging
from 3.20% to 5.00%, payable semi - annually.
$ 3,030,000
Unsecured revenue note payable to a bank; principal and interest due in quarterly
payments of $20,000. Note bears interest at 4.99% per annum, due July 1, 2006. 320,000
Revenue note payable to a bank; principal and interest due in quarterly payments of
Balance
$9,822. Note bears interest at 4.56% per annum, due October 15, 2005. The note is
Balance
collateralized by certain equipment.
118,202
3,468,202
Accrued vacation and sick leave
228,045
Workers' compensation claims payable
227,854
$ 3,924,101
Changes in general long -term debt during the year are as follows:
(a) Subsequent to September 30, 2002, these two notes were refinanced with SunTrust on
June 1, 2003. 1n addition, the Village also incurred $950,000 in new debt for a total of
$1,280,000.
-21-
Balance
Balance
September 30,
September 30,
2001
Additions Reductions
2002
General obligation bond payable
$ 3,090,000
$ - $ 60,000
$ 3,030,000
Revenue note payable (a)
380,000
- 60,000
320,000
Revenue note payable (a)
151,751
- 33,549
118,202
Subtotal
3,621,751
- 153,549
3,468,202
Accrued vacation and sick leave
250,819
- 22,774
228,045
Workers' compensation claims
386,954
- 159,100
227,854
Total
$ 4,259,524
$ - $ 335,423
$ 3,924,101
(a) Subsequent to September 30, 2002, these two notes were refinanced with SunTrust on
June 1, 2003. 1n addition, the Village also incurred $950,000 in new debt for a total of
$1,280,000.
-21-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 6. LONGTERM DEBT (Continued)
a. Summary of Long -Term Debt (Continued)
The annual debt service requirements for the new 2003A and 2003B Series debt is as follows:
$ 1,280,000 $ 150,977 $ 1,430,977
b. Summary of Future Debt Service Requirements
The annual debt service requirements to maturity for all long -term debt are as follows:
Principal
Interest
Total
Fiscal year ending September 30:
2003
$ 198,500
$ 27,631
$ 226,131
2004
198,500
23,661
222,161
2005
198,500
19,581
218,081
2006
114,500
16,320
130,820
2007
95,000
16,160
111,160
2008 -2012
475,000
47,624
522,624
$ 1,280,000 $ 150,977 $ 1,430,977
b. Summary of Future Debt Service Requirements
The annual debt service requirements to maturity for all long -term debt are as follows:
NOTE 7. COMMITMENTS AND CONTINGENCIES
a. Legal Matters
The Village has several claims arising in the ordinary course of operations pending against the
Village. In the opinion of legal counsel and management of the Village, the liabilities, which
may arise from such actions, would not result in losses, which would materially affect the
financial position or the results of operations of the Village.
-22-
Principal
Interest
Total
Fiscal year ending September 30:
2003
$ 174,884
$ 162,679
$ 337,563
2004
176,502
154,862
331,364
2005
191,816
148,444
340,260
2006
145,000
137,832
282,832
2007
70,000
135,232
205,232
2008-2012
395,000
629,620
1,024,620
2013-2017
500,000
529,688
1,029,688
2018-2022
630,000
392,862
1,022,862
2023-2027
805,000
219,500
1,024,500
2028-2029
380,000
28,750
408,750
Total
$ 3,468,202
$ 2,539,469
$ 6,007,671
NOTE 7. COMMITMENTS AND CONTINGENCIES
a. Legal Matters
The Village has several claims arising in the ordinary course of operations pending against the
Village. In the opinion of legal counsel and management of the Village, the liabilities, which
may arise from such actions, would not result in losses, which would materially affect the
financial position or the results of operations of the Village.
-22-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7. COMMITMENTS AND CONTINGENCIES (Continued)
b. Workers' Compensation Claims
The Village has a commitment to Miami -Dade County for prior workers compensation claims
for $227,854 as of September 30, 2002. 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.
NOTE 8. SEGMENT INFORMATION — ENTERPRISE FUNDS
The Village maintains two enterprise funds. The Stormwater Utility Fund accounts for the
operation and maintenance of the Village's stormwater system. The Sanitation Fund accounts for
the operation and maintenance of the Village's sanitation system, which includes waste pickup
and disposal. Selected segment information for the year ended September 30, 2002 is as follows:
Stormwater
Sanitation
Utility Fund
Fund
Total
Charges for services
$ 137,271
$ 1,490,064
$ 1,627,335
Depreciation
16,676
82,965
99,641
Operating loss
(47,024)
(331,312)
(378,336)
Operating transfers out
(73,250)
(175,000)
(248,250)
Net loss
(120,274)
(497,932)
(618,206)
Fixed asset additions
-
(320,063)
(320,063)
Net working capital
(68,723)
(562,211)
(630,934)
Total assets
190,696
950,680
1,141,376
Retained earnings
68,953
40,192
109,145
-23-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9. POST - RETIREMENTS BENEFITS
Plan Description
The Village provides post - retirement health benefits in accordance with the requirements of an
agreement between the Village and the Miami -Dade County Police Benevolent Association
(PBA).
Police officers who retire and begin receiving benefits from the Village's pension plan on or
after October 1, 1991 are eligible to receive a monthly benefit of up to $100 to defray the cost
of health insurance coverage for the retiree.
Only those police officers who retire under the provisions of the Village's pension plan with at
least 25 years of creditable service, or who are granted a disability benefit under the provisions
of the Village's Pension Plan, are eligible for the retiree health benefit.
Eligible retired police officers receive the retiree health benefit until they become eligible for
Medicare benefits, at which time the Village retiree health benefit is suspended.
The employer makes benefit payments directly to an insurance canter or health benefit
program on behalf of the eligible retired police officer. If the retired police officer is covered
by any other insurance or health benefit program, the Village retiree health benefit will be
secondary to any and all other insurance or benefit programs. If the actual cost of the retired
police officer's participation in such other insurance or benefit program is less than $100 per
month, the Village retiree health benefit payable is the actual cost of such insurance or benefit
program.
The Village and police officers share the cost of establishing and maintaining the retiree health
benefit on a 50150 basis. The total cost of the retiree health benefit is determined by periodic
actuarial review. The fiscal year 2002 employee contribution applied to employers recognized
by the PBA was $2.35 per employee per week, payable by payroll deduction during the year
ended September 30, 2002. 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, 2002, 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, 2002, the
Plan had net assets of approximately $74,000 available for benefits and no liabilities.
-24-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
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 for the year ended September 30, 2002 is as follows:
Unpaid claims, beginning
$ 443,065
Incurred claims (including IBNR's)
268,648
Claim payments and disbursements
205,048
Unpaid claims, ending
$ 506,665
NOTE 11. PRIOR PERIOD ADJUSTMENTS
During 2002, three prior period adjustments were recorded in order to correct errors recorded in
prior years.
The first adjustment was posted to the 1999 General Obligation Bond Fund for expenses that
were recorded twice in the prior year.
The second adjustment was recorded in the Stormwater Utility Fund in order to adjust
accumulated depreciation in order to properly reflect the values of the assets transferred from the
General Long Term Debt Account Group when the Stormwater Utility Fund was created.
The final adjustment was posted to the Police Pension Fund in order to correct the value of the
plan net assets at September 30, 2001 due to errors in the plans trustee report.
NOTE 12. 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.
-25-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 12. EMPLOYEE RETIREMENT SYSTEM (Continued)
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.
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 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 on January 1, 1957
by the Village Council. On December 31, 1999, the Plan was split between the General
Employees and the Police Officers. The Plans are 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.
-26-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 12. EMPLOYEE RETIREMENT SYSTEM (Continued)
a. General Employees' Retirement Plan (Continued)
Annual Pension Cost and Net Pension Asset
As of September 30, 2001, the date of the latest available information, the Village's net
pension asset was as follows:
Annual required contributions (ARC) $
Interest on net pension asset _
Adjustment to ARC _
Annual pension cost _
Actual contribution _
Change in net pension asset _
Net pension asset, beginning of year _
Net pension asset, end of year $ _
The annual required contributions for the current year was determined as part of the
October 1, 2000 actuarial valuation using the frozen entry age actuarial cost method. This
method is the same as the Aggregate Actuarial Cost Method when there is no unfunded
liability and therefore does not identify and separately amortize the unfunded actuarial
liabilities. 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 (APCI APC Contributed Asset
9/30/1999 $ 218,478 100% $ 1,752
9/30/2000 - - -
9/30/2001
b. Police Officers' Retirement Plan
Plan Description
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
Officers. The Plan is also governed by certain provisions of Chapter 185, Florida Statutes.
The Board of Trustees for the Plan administers the Plan.
-27-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 12. EMPLOYEE RETIREMENT SYSTEM (Continued)
b. Police Officers' Retirement Plan (Continued)
Plan Description (Continued)
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 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 Asset
As of September 30, 2001, the date of the latest available information, the Village's net
pension asset was as follows:
Annual required contributions (ARC)
$ 189,485
Interest on net pension asset
(1,554)
Adjustment to ARC
3,063
Annual pension cost
190,994
Actual contribution
189,485
Decrease in net pension asset
(1,509)
Net pension asset, beginning of year
19,428
Net pension asset, end of year
$ 17,919
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. This
method is the same as the Aggregate Method when there is no unfunded liability and
therefore does not identify and separately amortize the unfunded actuarial liabilities. 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.
Three -Year Trend Information
Annual Pension
Percentage of
Net Pension
Fiscal Year Ending
Cost (APC)
APC Contributed
Asset
9/30/1999
$ 218,478
100.8%
$ 1,752
9/30/2000
210,766
108.4%
19,428
9/30/2001
190,994
99.2%
17,919
-28-
MIAMI SHORES VILLAGE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 12. EMPLOYEE RETIREMENT SYSTEM (Continued)
c. Membership
Membership of each Plan consisted of the following at October 1, 2001 the dates of the
latest actuarial valuations:
General
Employ Police
Retirees and beneficiaries currently receiving benefits and
terminated employees entitled to benefits but not yet
receiving them 37 17
Fully vested 56 27
Non - vested 17 -
73 27
d. Required Supplementary Information
The schedules 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. As the Plans use the Aggregate Actuarial Cost Method for funding, schedules of
funding progress are not required.
-29-
MIAMI SHORES VILLAGE, FLORIDA
PENSION TRUST FUNDS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Combined Plan
Year
Annual
Contribution
Contribution
Ended
Required
from
from
Percentage
September 30,
Contribution
Employer
State
Contributed
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 Retirement System
Year
Annual
Contribution
Contribution
Ended
Required
from
from
Percentage
September 30,
Contribution
Employer
State
Contributed
2001
$ -
$ -
N/A
100%
2002
-
-
N/A
100%
Police Officer's Retirement System
Year
Annual
Contribution
Contribution
Ended
Required
from
from
Percentage
September 30,
Contribution
Employer
State
Contributed
2001
$ 189,485
$ 151,348
$ 38,137
100%
2002
127,821
100,215
39,864
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 Retirement System
10/1 /O1
Aggregate Actuarial Cost Method
N/A
N/A
5 year smoothed market
8%
5.50%
N/A
-30-
Police Officer's Retirement System
10 /1 /O1
Aggregate Actuarial Cost Method
N/A
N/A
5 year smoothed market
8%
6.5%
N/A
COAMVGNG�lNDWUlUAL FIND T
ACCOUNT GROUP STATEASM
-I ralm
: 6
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Budgetary
Variances
Basis
Favorable
Budget Actual
(Unfavorable)
Revenues:
Taxes:
Property taxes, current and delinquent
Licenses and permits:
Business licenses
Building permits
Certificate of reoccupancy
Other licenses and permits
Total licenses and permits
Intergovernmental revenues:
State shared revenues:
State revenue sharing
Beverage licenses
Local government half cent sales tax
Department of transportation (landscape maintenance)
Police extra duty pay
Alarm billings
County shared revenues:
County occupational licenses
School crossing programs
Total intergovernmental revenues
Charges for services:
Physical environment
Culture /recreation
Total charges for services
Fines and forfeitures:
Court fines and costs
Other
Total fines and forfeitures
Miscellaneous revenue:
Rents
Other revenue
Total miscellaneous revenue
Interest
Total revenues
-31-
$ 3,577,996 $ 3,404,110 $ (173,886)
-
49,371
49,371
210,000
280,120
70,120
7,500
13,305
5,805
52,500
53,970
1,470
270,000
396,766
126,766
241,675
234,008
(7,667)
1,250
1,007
(243)
600,000
604,918
4,918
19,900
19,902
2
145,434
180,469
35,035
7,500
-
(7,500)
17,550
19,797
2,247
37,362
37,130
(232)
1,070,671
1,097,231
26,560
5,750
33,705
27,955
569,429
639,241
69,812
575,179
672,946
97,767
143,375
130,172
(13,203)
211,045
134,076
(76,969)
354,420
264,248
(90,172)
185,000
176,348
(8,652)
91,828
35,626
(56,202)
276,828
211,974
(64,854)
391,087
93,214
(297,873)
$ 6,516,181
$ 6,140,489
$ (375,692)
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Expenditures:
Current:
General government:
Village council:
Personnel services
Operating expenses
Village attorney:
Operating expenses
Village manager:
Personnel services
Operating expenses
Village clerk:
Personnel services
Operating expenses
Code enforcement:
Personnel services
Operating expenses
-32-
Budgetary
Variances
Basis
Favorable
Budge Actual
(Unfavorable)
$ 80
$ 80 $
-
5,561
1,852
3,709
5,641
1,932
3,709
198,477
165,481
32,996
198,477
165,481
32,996
232,243
195,197
37,046
44,952
41,538
3,414
277,195
236,735
40,460
106,096
88,487
17,609
37,011
28,081
8,930
143,107
116,568
26,539
145,653
131,559
14,094
38,572
32,971
5,601
184,225
164,530
19,695
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Expenditures:
Current:
General government (Continued):
Building department:
Personnel services
Operating expenses
Planning and zoning:
Personnel services
Operating expenses
Capital outlay
Finance:
Personnel services
Operating expenses
Other general government:
Non - departmental:
Personnel services
Operating expenses
Total general government
-33-
Budgetary
Variances
Basis
Favorable
Budget Actual
(Unfavorable)
$ 108,384 $ 98,110 $ 10,274
164,428 171,364 (6,936)
272,812 269,474 3,338
103,446
93,844
9,602
24,190
12,251
11,939
3,200
3,195
5
130,836
109,290
21,546
295,646
290,810
4,836
130,195
118,142
12,053
425,841
408,952
16,889
84,569
68,219
16,350
408,876
168,119
240,757
493,445
236,338
257,107
2,131,579 1,709,300 422,279
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
School crossing guard:
Personnel services 35,641
19,868
Budgetary
Variances
694
1,027
Basis
Favorable
16,800
Budget
Actual
(Unfavorable)
Public safety:
486,667
72,620
Street maintenance:
Law enforcement:
Personnel services
Personnel services
$ 3,010,727
$ 2,902,866
$ 107,861
Operating expenses
478,402
417,394
61,008
Capital outlay
9,500
4,220
5,280
3,498,629
3,324,480
174,149
School crossing guard:
Personnel services 35,641
19,868
15,773
Operating expenses 1,721
694
1,027
37,362
20,562
16,800
Total public safety 3,535,991
3,345,042
190,949
Public services:
Parks:
Personnel services
$ 332,183 $
271,814
$ 60,369
Operating expenses
227,104
198,355
28,749
Debt service
-
16,498
(16,498)
559,287
486,667
72,620
Street maintenance:
Personnel services
218,294
165,182
53,112
Operating expenses
345,367
316,416
28,951
563,661
481,598
82,063
Public works administration:
Personnel services
333,590
306,275
27,315
Operating expenses
121,804
107,936
13,868
455,394
414,211
41,183
Recreation maintenance:
Personnel services 114,941
110,516
4,425
Operating expenses 50,963
45,297
5,666
165,904
15 5, 813
10,091
Total public services 1,744,246
1,538,289
205,957
-34-
MIAMI SHORES VILLAGE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued)
Culture /recreation:
Recreation:
Personnel services
Operating expenses
Capital outlay
Library:
Personnel services
Operating expenses
Capital outlay
Total culture /recreation
Total expenditures
FISCAL YEAR ENDED SEPTEMBER 30, 2002
-35-
Budgetary
Variances
Basis
Favorable
Budget Actual
(Unfavorable)
$ 855,060
$ 875,326
$ (20,266)
544,883
499,323
45,560
1,625
3,720
(2,095)
1,401,568
1,378,369
23,199
236,623
237,388
(765)
43,518
31,249
12,269
49,660
47,606
2,054
329,801
316,243
13,558
1,731,369 1,694,612 36,757
$ 9,143,185 $ 8,287,243 $ 855,942
is1 i 57i
77 �46'§' �,_� R A 't'."' )& @ •'6l. a: fii
ME M.M
i
MIAMI SHORES VILLAGE, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
Local
Option
Excise Gas
Tax Tax Grant Hurricane
Fund Fund Fund Fund Total
ASSETS
Cash and cash equivalents $ - $ 115,768 $ 20,754 $ - $ 136,522
Receivables 86,466 22,076 6,901 - 115,443
Due from other funds - 593,800 - - 593,800
Total assets $ 86,466 $ 731,644 $ 27,655 $ - $ 8453765
LIABILITIES AND FUND BALANCES
Liabilities:
Due to other funds $ - $ - $ 22,936 $ - $ 22,936
Total liabilities - - 22,936 - 22,936
Fund balances:
Unreserved 86,466 731,644 4,719 - 822,829
Total fund balances 86,466 731,644 4,719 - 822,829
Total liabilities and fund balances $ 86,466 $ 731,644 $ 27,655 $ - $ 845,765
-36-
MIAMI SHORES VILLAGE, FLORIDA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2002
-37-
Local
Option
Excise
Gas
Tax
Tax
Grant
Hurricane
Fund
Fund
Fund
Fund
Total
Revenues:
Franchise fees
$ 492,394
$ -
$ -
$ -
$ 492,394
Utility taxes
1,251,502
-
-
-
1,251,502
Other taxes
-
280,904
-
-
280,904
Intergovernmental revenues
-
-
23,234
-
23,234
Interest
-
1,388
-
-
1,388
Total revenues
1,743,896
282,292
23,234
-
2,049,422
Expenditures:
Operating
-
145,674
11,667
-
157,341
Capital outlay
-
549
10,202
-
10,751
Total expenditures
-
146,223
21,869
-
168,092
Excess of revenues
over expenditures
1,743,896
136,069
1,365
-
1,881,330
Other financing uses:
Operating transfers out
(1,701,559)
(2,500)
-
-
(1,704,059)
Total other financing uses
1,701,559
(2,500)
-
-
(1,704,059)
Excess of revenues over
expenditures and other
financing uses
42,337
133,569
1,365
-
177,271
Fund balances (deficit), beginning
44,129
598,075
3,354
(70,911)
574,647
Residual equity transfer in
-
-
-
70,911
70,911
Fund balances, ending
$ 86,466
$ 731,644
$ 4,719
$ -
$ 822,829
-37-
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MIAMI SHORES VILLAGE, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
ASSETS
Cash and cash equivalents
Receivables
Due from other funds
Bond issue costs
Other assets
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other funds
Total liabilities
Fund balances:
Unreserved:
Designated for capital outlay
Total fund balances
Total liabilities and fund balances
-39-
1999
General
Capital Obligation
Improvement Bond
Fund Fund Total
$ 130,325 $ 241,727
- 71,687
85,413 34,317
- 30,827
6,540 -
$ 222,278 $ 378,558
$ 372,052
71,687
119,730
30,827
6,540
$ 600,836
$ 34,775 $ - $ 34,775
86,716 335,084 421,800
121,491 335,084 456,575
100,787 43,474 144,261
100,787 43,474 144,261
$ 222,278 $ 378,558 $ 600,836
MLAMI SHORES VILLAGE, FLORIDA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES (DEFICIT)
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Revenues:
Other income
Interest
Expenditures:
Current:
Operating
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources:
Operating transfers in
Excess of revenues and other financing
sources over expenditures
Fund balances (deficit), beginning, as previously reported
Prior period adjustment
Fund balances (deficit), as restated
Fund balances, ending
-40-
29,059
1999
409,150
40,453 449,603
General
- 29,598
Capital
Obligation
470,933
Improvement
Bond
Fund
Fund
Total
$ -
$ 156,249
$ 156,249
2,702
6,421
9,123
2,702
162,670
165,372
29,059
46,786 75,845
409,150
40,453 449,603
29,598
- 29,598
3,126
- 3,126
470,933
87,239 558,172
(468,231) 75,431 (392,800)
502,500 - 502,500
34,269 75,431
109,700
66,518 (251,514)
(184,996)
- 219,557
219,557
66,518 (31,957)
34,561
$ 100,787 $ 43,474 $ 144,261
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PROI�MTARYFUND TYM
i• 8` Y::' A?'9 §' >. *S 7k_' -rf fip /n i'i 93. ryA �, ;.p j d 4 "r;F '.1'.
�$1'td4s - � ^w•�.� !4 � &�. st5a a; .. �., f i;& �""�"x$9PSi 4.5 *' ��,., n4 _`
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MIAMI SHORES VILLAGE, FLORIDA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
ASSETS
Cash and cash equivalents
Receivables
Due from other funds
Inventories
Fixed assets
Total assets
LIABILITIES AND EQUITY
Liabilities:
Accounts payable and accrued liabilities
Due to other funds
Deferred revenue
Total liabilities
Equity:
Retained earnings
Total liabilities and equity
SEPTEMBER 30, 2002
-42-
Stormwater
Utility Sanitation
Fund Fund Total
$ - $ 139,018 $ 139,018
10,087 180,135 190,222
42,933 - 42,933
- 29,124 29,124
137,676 602,403 740,079
$ 190,696 $ 950,680 $ 1,141,376
$ 9,005
$ 58,396
$ 67,401
75,796
266,788
342,584
36,942
585,304
622,246
121,743
910,488
1,032,231
68,953 40,192 109,145
$ 190,696 $ 950,680 $ 1,141,376
MIAMI SHORES VILLAGE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Charges for services
Operating expenses:
Administrative and general
Personnel expenses
Depreciation
Contractual services
Provision for doubtful accounts
Total operating expenses
Operating loss
Non - operating income:
Other income
Loss before operating transfers
Operating transfers:
Transfers out
Net loss
Retained earnings, beginning, as previously reported
Prior period adjustment
Retained earnings, as restated
Retained earnings, ending
-43-
Stormwater
Utility Sanitation
Fund Fund Total
$ 137,271 $ 1,490,064 $ 1,627,335
61,972
793,951
855,923
55,099
652,820
707,919
16,676
82,965
99,641
31,478
16,846
48,324
19,070
274,794
293,864
184,295
1,821,376
2,005,671
(47,024) (331,312) (378,336)
8,380 8,380
(47,024) (322,932) (369,956)
73,250) (175,000) (248,250)
(120,274) (497,932) (618,206)
332,079 538,124 870,203
(142,852) - 142,852)
189,227 538,124 727,351
$ 68,953 $ 40,192 $ 109,145
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CASH FLOWS -
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Cash flows from operating activities:
Operating loss
Adjustments to reconcile operating loss to
net cash provided by operating activities:
Depreciation
Provision for doubtful accounts
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Due from other funds
Due from other governments
Inventories
Increase (decrease) in:
Accounts payable and accrued liabilities
Due to other funds
Deferred revenue
Net cash provided by operating activities
Cash flows from non - capital financing activities:
Transfers out
Cash flows from capital and related financing activities:
Capital improvements
Cash flows from investing activities:
Interest received
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
-44-
Stormwater
Utility Sanitation
Fund Fund Total
$ (47,024) $ (331,312) $ (378,336)
16,676
82,965
99,641
19,070
274,794
293,864
(534)
29,509
28,975
57,649
465,659
523,308
22,261
-
22,261
-
2,912
2,912
(31,790)
7,481
(24,309)
-
(62,719)
(62,719)
36,942
17,394
54,336
73,250
486,683
559,933
(73,250) (175,000) (248,250)
- (320,063) (320,063)
- 8,380 8,380
- 139,018 139,018
$ - $ 139,018 $ 139,018
"J l
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MIAMI SHORES VILLAGE, FLORIDA
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2002
ASSETS
Cash and cash equivalents
Receivables
Due from other funds
Inventories
Fixed assets
Total assets
LIABILITIES AND EQUITY
Liabilities:
Accounts payable and accrued liabilities
Due to other funds
Estimated insurance claims
Total liabilities
Equity:
Retained earnings (deficit)
Total liabilities and equity
-45-
Risk
Fleet
Management
Maintenance
Fund
Fund
Total
$ 206,414 $
147,980
$ 354,394
110,342
-
110,342
91,998
-
91,998
-
30,396
30,396
-
336,047
336,047
$ 408,754 $
514,423
$ 923,177
$ 25,010 $ 43,437 $ 68,447
129,135 213,410 342,545
506,665 - 506,665
660,810 256,847 917,657
(252,056) 257,576 5,520
$ 408,754 $ 514,423 $ 923,177
MIAMI SHORES VILLAGE, FLORIDA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Charges for services
Operating expenses:
Insurance premiums
Claims
Administrative and general
Depreciation
Total operating expenses
Operating loss
Non - operating income:
Interest income
Net loss
Retained earnings (deficit), beginning
Retained earnings (deficit), ending
-46-
Risk Fleet
Management Maintenance
Fund Fund Total
$ 538,072 $ 427,213 $ 965,285
483,230
- 483,230
205,048
- 205,048
86,070
399,166 485,236
-
180,545 180,545
774,348
579,711 1,354,059
(236,276) (152,498) (388,774)
4,935 10,322 15,257
(231,341) (142,176) (373,517)
(20,715) 399,752 379,037
$ 252,056) $ 257,576 $ 5,520
MIAMI SHORES VILLAGE, FLORIDA
COMBINING STATEMENT OF CASH FLOWS -
INTERNAL SERVICE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Cash flows from operating activities:
Operating loss
Depreciation
Adjustments to reconcile operating loss to
net cash provided (used) 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 (used) by
operating activities
Cash flows from capital and related financing activities:
Capital improvements
Cash flows from investing activities:
Interest received
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
-47-
Risk
Fleet
Management
Maintenance
Fund
Fund
Total
$ (236,276) $ (152,498) $ (388,774)
180,545 180,545
(110,341) (7,417) (117,758)
(982) - (982)
16,918 - 16,918
(14,780)
20,559 5,779
53,219
- 53,219
129,135
32,764 161,899
(163,107)
73,953 (89,154)
- (84,275) (84,275)
4,935 10,322 15,257
(158,172) - (158,172)
364,586 147,980 512,566
$ 206,414 $ 147,980 $ 354,394
W
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MIAMI SHORES VILLAGE, FLORIDA
EXPENDABLE TRUST FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED SEPTEMBER 30, 2002
Expenditures:
(30,000)
Law
Total other financing uses
Brockway
- - 185,180 318,637 - 503,817
Culture /recreation
7,395 - - - - 7,395
Total expenditures
Enforcement
Excess (deficiency) of revenues
Memorial
Police
11,342 3,064 38,613 6,015) 6,521 53,525
3,064 38,613 (6,015) 6,521 23,525
General
Training
Police
Library
Insurance
8,320 $ 358,007 $ (9,588) $ 80,510 $ 469,660
Trust
Trust
Forfeiture
Trust
Trust
Total
Revenues:
Contributions
$ 18,272
$ 3,064
$ -
$ 225,000
$ 6,521
$ 252,857
Interest
465
-
127,441
87,622
-
215,528
Confiscated property
-
-
96,352
-
-
96,352
Total revenues
18,737
3,064
223,793
312,622
6,521
564,737
Expenditures:
(30,000)
Current:
Total other financing uses
Public safety
- - 185,180 318,637 - 503,817
Culture /recreation
7,395 - - - - 7,395
Total expenditures
7,395 - 185,180 318,637 - 511,212
Excess (deficiency) of revenues
over expenditures
11,342 3,064 38,613 6,015) 6,521 53,525
Other financing sources:
Operating transfers out
(30,000)
- - - - (30,000
Total other financing uses
(30,000)
- - - - (30,000)
Excess (deficiency) of revenues
over expenditures and other
financing sources
(18,658)
3,064 38,613 (6,015) 6,521 23,525
Fund balances (deficit), beginning
51,069
5,256 319,394 (3,573 73,989 446,135
Fund balances (deficit), ending
$ 32,411 $
8,320 $ 358,007 $ (9,588) $ 80,510 $ 469,660
L
-49-
MIAMI SHORES VILLAGE, FLORIDA
PENSION TRUST FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN PLAN NET ASSETS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
ADDITIONS
Contributions:
City
Employees
State
Total contributions
Investment income (loss):
Net depreciation in fair value of investments
Interest
Dividends
Less investment expenses
Net investment loss
Total reductions
DEDUCTIONS
Pension benefits
Professional services
Total deductions
Net decrease
Net assets held in trust for pension benefits:
Beginning, as previously reported
Prior period adjustment
Beginning, as restated
Ending
-50-
General
Police Employees
Pension Pension
Fund Fund Total
$ 100,215 $ - $ 100,215
127,652 151,310 278,962
39,564 - 39,564
267,431 151,310 418,741
(1,251,326) (1,260,409) (2,511,735)
211,285
130,790
342,075
77,131
41,842
118,973
70,653)
(56,127)
(126,780)
1,033,563)
(1,143,904)
(2,177,467)
766,132)
(992,594)
(1,758,726)
514,582
259,418
774,000
30,692
29,462
60,154
545,274
288,880
834,154
(1,311,406) (1,281,474) (2,592,880)
10,384,840 7,396,152
17,780,992
(732,240) -
(732,240)
9,652,600 7,396,152
17,048,752
$ 8,341,194 $ 6,114,678 $ 14,455,872
GENERAL FUCID ASSETS
ACCOUNTGROUP
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MIANH SHORES VILLAGE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 2002
General fixed assets:
Land $ 711,404
Buildings 5,390,352
Improvements other than buildings 3,458,831
Equipment 3,205,413
Construction in progress 313,007
Total general fixed assets $ 13,079,007
Investment in general fixed assets:
General fund
$ 3,277,343
Country Club
1,820,517
Special revenue funds
4,441,584
Capital projects fund
516,666
Aquatics Facility
1,940,771
Gifts and donations
381,184
Confiscated property
683,666
Insurance fund
17,276
Total investment in general fixed assets
$ 13,079,007
-51-
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 2002
General government:
Finance and administrative
Public safety - police
Public services - public works
Culture /recreation:
Parks and recreation
Library
Aquatics Facility
Country Club
Total culture /recreation
Total general fixed assets
allocated to functions
-53-
Balance
Balance
September 30,
September 30,
2001
Additions
Deletions 2002
$ 748,104
$ 139,963
$ - $ 888,067
2,391,098
45,822
- 2,436,920
2,473,299
168,577
- 2,641,876
2,172,139
58,278
- 2,230,417
708,529
411,910
- 1,120,439
1,940,771
-
- 1,940,771
1,820,517
-
- 1,820,517
6,641,956
470,188
- 7,112,144
$ 12,254,457 $ 824,550 $ - $ 13,079,007
STATISTICAL SECTION
MIAMI SHORES VILLAGE, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
Includes general fund only (excludes capital outlay).
-54-
Recreation
Fiscal
General
Public
Public
and
Debt
Year
Government
Safety fety
Works
Culture
Service
Total
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
2002
1,706,105
3,340,822
1,521,791
1,643,286
16,498
8,228,502
Includes general fund only (excludes capital outlay).
-54-
MIAMI SHORES VILLAGE, FLORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
( *) Sanitation services and fees transferred to newly created Enterprise Fund on 10/01 /W.
-55-
Licenses
Charges
Fires
Fiscal
and
Inter-
for
and
Year
Taxes
Taxes
governmental
Services N
Forfeitures
Miscellaneous
Total
1993
$ 4,034,053
$ 161,227
$ 968,227
$ 1,804,167
$ 116,021
$ 988,830
$ 8,072,525
1994
4,044,767
182,425
1,026,376
1,790,393
158,786
786,451
7,989,198
1995
4,151,583
175,278
1,097,505
1,902,751
207,611
772,887
8,307,615
1996
4,226,963
218,768
1,156,703
1,927,433
215,633
484,328
8,229,828
1997
4,285,860
196,806
1,196,306
2,074,061
207,350
368,131
8,328,514
1998
4,525,306
211,459
1,203,077
2,304,259
205,237
370,648
8,819,986
1999
3,072,144
231,674
942,571
2,145,903
111,930
411,006
6,915,228
2000
3,092,104
292,917
910,633
492,005
258,611
617,994
5,664,264
2001
3,152,976
355,561
919,339
671,075
290,484
507,349
5,896,784
2002
3,404,110
396,766
1,097,231
672,946
264,248
305,188
6,140,489
( *) Sanitation services and fees transferred to newly created Enterprise Fund on 10/01 /W.
-55-
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.
-56-
% of
Total
Current
% of
Delinquent
Total
Total Tax
Fiscal
Tax
Tax
Levy
Tax
Tax
Collection
Year
Levy
Collection
Collected
Collections
Collections
to Lew
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
3,491,572
106.5%
31,376
3,522,948
107.5%
2002
3,507,040
3,496,643
99.7%
153,480
3,650,123
104.1%
Source: Miami Shores Village Finance Department and Miami -Dade County Property Appraisers Office.
-56-
MIAMI SHORES VILLAGE, FLORIDA
ASSESSED VALUE OF TAXABLE PROPERTIES
LAST TEN FISCAL YEARS
Source: Miami -Dade County Property Appraisers Office.
-57-
Real
personal
Property
Property
Centrally
Total
Fiscal
Assessed
Assessed
Assessed
Assessed
Year
Value
Value
Value
Value
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
2002
462,954,450
18,854,983
946,240
482,755,673
Source: Miami -Dade County Property Appraisers Office.
-57-
MIAMI SHORES VILLAGE, FLORIDA
PROPERTY TAX LEVIES
LAST TEN FISCAL YEARS
Source: Miami -Dade County Property Appraiser.
-59-
Total
Fiscal
County-
Debt
Tax
Year
Village
Wide
Service
Fire
MDCC
Libra
School
State
Levies
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
2002
7.750
6.279
0.515
2.661
-
-
9.252
0.736
27.193
Source: Miami -Dade County Property Appraiser.
-59-
MIAMI SHORES VILLAGE, FLORIDA
DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2002
Sources:
(1) Miami Shores Village, Florida - Finance Department
(2) Miami -Dade County, Finance Department - Cash Management Division and the Office of
Management Budget.
(3) Metropolitan Dade County Schools - Finance Department
59-
Percent
Amount
Net
Applicable
Applicable
Debt
to Name of
to Name of
Jurisdiction
Outstanding
Government
Government
Miami Shores Village, Florida
(1) $ 3,090,000
100.00%
$ 3,090,000
Miami -Dade County, Florida
(2) 257,022,369
0.43%
1,107,307
Mianv -Dade County Public Schools
(3) 845,445,000
0.44%
3,747,293
i
Sources:
(1) Miami Shores Village, Florida - Finance Department
(2) Miami -Dade County, Finance Department - Cash Management Division and the Office of
Management Budget.
(3) Metropolitan Dade County Schools - Finance Department
59-
Fiscal
Village
Median
Year
Population
Age
Florida
wide
1993
10,125
36.8
1994
10,125
36.2
1995
10,125
36.2
1996
10,147
36.9
1997
10,137
38.7
1998
10,142
40.7
1999
10,139
39.9
2000
10,129
39.7
2001
10,130
39.5
2002
10,380
37.7
MIAMI SHORES VILLAGE, FLORIDA
DEMOGRAPHIC INFORMATION AND STATISTICS
LAST TEN FISCAL YEARS
Per Capita Personal Income
Miami- State
Miami
Dade
of
Nation -
Shores
County
Florida
wide
$ 18,252
$ 19,364
$ 20,144
$ 20,225
21,452
20,058
21,777
22,044
20,359
21,058
23,031
23,196
19,266
22,370
24,198
24,436
19,459
22,392
24,234
24,680
19,556
22,504
24,355
24,924
19,947
22,954
24,843
25,171
27,926
22,840
24,097
25,422
28,624
23,183
24,217
26,058
31,017
25,320
27,764
29,496
Unemployment Rate
Miami-
State
Dade
of
Nation -
Coun
Florida
wide
8.6
6.8
7.3
8.0
7.2
7.0
7.9
6.9
6.8
7.7
3.2
4.1
6.5
4.2
4.6
6.5
4.3
4.7
6.3
4.3
4.9
5. l
4.5
3.8
4.1
4.9
4.2
7.4
5.4
5.8
Sources:
University of Florida, Gainesville, Florida - Florida Bureau of Economic and Business Research
State of Florida, Tallahassee, Florida - Florida Department of Labor & Security
Miami -Dade County Public Schools - Finance Department, Budget & Planning Division
-60-
MIAMI SHORES VILLAGE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN FISCAL YEARS
Construction Value Property Values (2)
Fiscal Property Bank
Year Values Commercial Residential Deposits (1) Commercial Residential
1993 $ 315,447,217 $ 1,439,194 $ 6,317,638 $ 10,425,099 $ 31,544,721 $ 283,902,496
1994
319,513,226
7,682,079
4,697,261
12,337,712
30,586,368
288,926,858
1995
339,048,927
1,881,706
5,152,751
10,876,146
33,902,278
305,146,649
1996
341,965,184
4,196,947
4,958,956
11,296,602
30,816,273
311,148,911
1997
342,065,289
1,622,916
3,934,603
10,524,759
30,594,928
311,470,361
1998
368,516,109
823,366
4,938,015
10,737,507
31,830,638
336,685,471
1999
385,801,088
893,352
5,555,267
15,025,296
33,660,694
352,140,394
2000
407,910,505
2,683,853
3,888,687
17,366,270
33,885,496
374,028,009
2001
440,802,640
9,587,390
7,224,981
17,149,192
46,685,839
394,1 l 6,801
2002
482,755,673
12,827,928
7,586,230
20,365,445
53,994,561
428,761,112
Sources:
(1) Municipal Bank Deposit Records
(2) Estimated Actual Values
-61-
MIAMI SHORES VILLAGE, FLORIDA
MISCELLANEOUS INFORMATION
LAST TEN FISCAL YEARS
Date of incorporation
January 1, 1932
Form of government
Council/Manager
-... Population as of September 30, 2002
10,129
Size (of Village Area)
2.5 square miles
Total street miles
40
Number of streetlights
1,038
Fire protection (provided by Miami -Dade County):
71
Number of county - operated stations
I
Number of firefighters including officers
7
Police protection:
Number of stations
I
Number of police officers (all ranks /staff)
43
Education:
5
University:
I
Number of classrooms
104
Number of academicians
564
Number of students
6,154
Elementary school:
I
Number of classrooms
71
Number of academicians
105
Number of students
2,101
Pre- school and centers:
Number of classrooms
20
Number of academicians
40
Number of students
308
Recreation and cultural activities:
Number of village -owned parks
5
Number of libraries
I
Number of volumes as of September 30, 2002
54,420
Number of public swimming facilities
1
Number of recreation facilities
I
Number of public golf courses
I
Village employment:
Number of full -time employees
212
Number of part -time and seasonal employees
297
Other information:
Number of new building/home constructions
2
178
-62-
MIAMI SHORES VILLAGE, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 2002
Taxnaver
Property Location
Public Supermarket
9046 Biscayne Boulevard
Tropical Chevrolet, Inc.
8800 Biscayne Boulevard
Boris Moroz/Phil Glassman Trust
Shores Square, Homestead Realty Property; Second
$ 5,325,672
Avenue Properties
Bujolo, Inc.
Walgreen's Center (9020 Biscayne Boulevard)
Sheila McDonald
11 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
MS Center, LLC
Shores Cinema (9100 Block - N.E. 2nd
Avenue); 9800 Block - N.E. 2nd Avenue
Tsao Investments, Inc.
10500 Biscayne Boulevard
(Miami Shores Motel)
Angelo Napolitano Trust 9767 N.E. 13th Avenue
Thomas and Sandra Chaille 1600 N.E. 103rd Street (Residential)
Omar Cassola 9325 North Bayshore Drive
_6,3_
2,907,881
Percent of
Assessed
Total
Value
Village -Wide
for 2002
Assessment
$ 5,325,672
1.10%
3,328,497
0.69%
2,907,881
0.60 %n
1,857,565
0.38%
1,582,421
0.33%
1,467,858 0.30%
1,280,516 0.27%
1,267,122 0.26%
1,211,747 0.25%
1,250,000
0.26%
1,120,855
0.23%
1,048,156
0.22%
1,008,770
0.21%
$ 24,657,060
5.11%
MIAMI SHORES VILLAGE, FLORIDA
TEN LARGEST PUBLIC AND PRIVATE EMPLOYERS
LOCATED IN MIAMI -DADE COUNTY, FLORIDA
SEPTEMBER 30, 2002
Ten Largest Public Employers
Ten Largest Private Employers
Miami -Dade County Public Schools
37,500
American Airlines
9,000
Miami -Dade County, Florida
30,000
University of Miami
8,000
United States Government (a)
21,100
Baptist Health Care Systems
7,500
State of Florida
18,100
Precision Response Corporation
4,346
Jackson Memorial Hospital
10,000
BellSouth, Inc.
4,240
City of Miami, Florida
3,400
MasTec Corporation, Inc.
4,000
Florida International University
2,591
Royal Caribbean Cruise Lines, Inc.
4,000
Miami -Dade Community College
2,400
Publix Supermarket, Inc.
4,000
V.A. Medical Center
2,000
Florida Power & Light Company
3,823
City of Miami Beach, Florida
1,702
Mt. Sinai Medical Center
3,300
Source: The Beacon Council - Research Department
-64-
Rachlin Cohen & Holtz LLP
Certified Public Accountants & Consultants
Report of Independent Certified Public Accountants on Compliance and on
Internal Control over Financial Reporting Based on an Audit of General Purpose
Financial Statements Performed in Accordance with Government Audidne 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, 2002 and for the year then ended and have issued our report thereon dated April 11, 2003.
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.
-65-
One Southeast Third Ax,enue, Tenth Floor, Miami, Florida 33131 • Tel 305- 377 -4225 * Fax 305 - 377 -5331
Offices in: Miami • Ft. Lauderdale • Nlest Palm Beach • Stuart
-- -- w ww.rchcpa.com - -- - - - - - --
Nlember 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
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.
Ae
Miami, Florida
April 11, 2003
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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, 2002 and for the year then ended and have issued our report thereon dated April 11, 2003.
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 April 11, 2003, 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, 2002, 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 2002, was not in a state of financial emergency as defined by Florida
Statute, Section 218.503 (1).
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 Awnue, Tenth Floor, Mami, Florida 33131 • Tel 305- 377 -4228 • Fax 305- 377 -8331
Offices in: Miami • Ft. Lauderdale • West Palm Beach - Stuart
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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, 2002 has been filed with the
Department of Banldng 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.
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Miami, Florida
April 11, 2003
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 2002
PART I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS
F Preparation of Books and Records
02 -01 Condition
The Village's books and records were not closed and available for audit in a timely manner after fiscal
year end. Prudent business practice would dictate that the books and records be closed within a timely
period after each month as well as after fiscal year end (i.e., no later than 90 days after fiscal year end).
Numerous adjustments were posted to the fiscal year 2002 accounting records throughout fiscal year 2003
in order to prepare the financial statements for the fiscal year audit. Many of the following prior year
comments not implemented are the results of not having the books and records closed in a timely manner.
Recommendation
We recommend that the Village examine the monthly general ledger activity in order to ensure that the
balances appear reasonable based on activities that occurred during the month. This will allow the
Village to monitor and convect transactions closer to when they occur. This would also reduce the amount
of year end reconciliation or investigation into account activities and would enable the Village close their
books and records at fiscal year end in a timely manner.
Management Response
Management agrees with the auditors' findings and recommendations. The Village began a computer
conversion in January 2002 which required considerably greater effort and resulted in many manual data
transfers through the year. Accordingly, many of the working modules required immediate
implementation on October 0 (the beginning of FY 2003) in order to avoid future transaction control
problems. Village staff could not attend to the computer conversation and closing simultaneously;
resulting in the delays in the closing FY 2002. However, the Chief Financial Officer has reviewed the
situation and will ensure that fiscal periods are closed and analyzed monthly and plans to have the books
closed on or before December 15U' of each fiscal year hereafter.
PART II. PRIOR YEAR COMMENTS AND RECOMMENDATIONS NOT MIPLElVIENTED
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 11. PRIOR YEAR COMMENTS AND RECOMMENDATIONS NOT IMPLEMENTED
(Continued)
01 -2. Computer System (Continued)
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
Management purchased, installed, and converted data from Pick to a new software system (Main Street
Software). General Ledger activity ran parallel from June through September 2002, with the accounts
payable module going live on July 1, 2002. The Utility Billing Module went live on October 1, 2002 and
Payroll went live on January 1, 2003 (corresponding to the calendar year for tax purposes).
01 -3. Post Closing Journal Entries
Condition
For the fourth 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 records. The result of this has two
consequences: 1) opening account balances do not reflect final prior end of year financial statement
balances, and 2) excessive time is required on the part of financial accounting staff and the auditors to
reconcile the opening balances of the accounts. All of the final trial balances and post closing journal
entries are provided to the client at the conclusion of the engagement.
Recommendation
We recommend that once the 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
This issue will be completely eliminated as of fiscal year 2002 with the full operationalization of
MainStreet.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART II. PRIOR YEAR COMMENTS AND RECOMMENDATIONS NOT IMPLEMENTED
(Continued)
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.
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.
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 -6. Monthly Account Reconciliations
Condition
In order to make the financial reports generated by the accounting system as meaningful as possible, the
Village should reconcile all general ledger accounts on a monthly basis and retain copies of all
reconciliations. This will ensure that proper accounting policies and practices are followed throughout
the year.
Recommendation
Cash
A cash reconciliation that reconciles from the bank balance to the general ledger balance should be
prepared to determine that all cash transactions have been recorded properly and also to discover bank
errors; maintaining the completed account reconciliation worksheets for year end reference.
Accounts Receivable
A reconciliation of accounts receivable from the general ledger to the accounts receivable detail ledger
should be prepared to check that the recording of transactions is accurate and proper and that any
adjustments to or write -offs of accounts receivable have been approved.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART U. PRIOR YEAR COMMENTS AND RECOMMENDATIONS NOT IMPLEMENTED
(Continued)
01 -6. Monthly Account Reconciliations (Continued)
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 -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.
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MIAMI SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART H. PRIOR YEAR COMMENTS AND RECOMMENDATIONS NOT IMPLEMENTED
(Continued)
01 -9. Accounting Procedures Manual (Continued)
Management Response
Management has initiated a comprehensive Accounting Procedures Manual, integrating the various
module operations of the new accounting software system. Additionally, new technologies have been
introduced including a frame relay system, connecting all Village operations to a central computer
system. The Procedures Manual will be complete along with an IS Protocol Handbook by September
2003.
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.
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.
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MIAM! SHORES VILLAGE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
PART H. PRIOR YEAR COMMENTS AND RECOMMENDATIONS NOT UAPLEMENTED
(Continued)
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.
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
Management has implemented new policies which require that the Finance Department be provided with
all grant documentation at the point of application and/or award through project close out. While some
weaknesses still remain, it is anticipated that these issues will be resolved by the close of FY 2002 -03.
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