HomeMy Public PortalAboutCAFR 1993.pdfCOMPREHENSIVE
ANNUAL FINANCIAL
REPORT
of the
Village of Key Biscayne, Florida
for the
Fiscal Year Ended
September 30, 1993
Prepared by
The Finance Department
VILLAGE OF KEY BISCAYNE, FLORIDA
COUNCIL - MANAGER FORM OF GOVERNMENT
VILLAGE COUNCIL
Rafael Conte, Mayor
Michael Hill, Councilman Clifford Brody, Vice-Mayor
Betty Q. Sime, Councilwoman Joe 1. Rasco, Councilman
Raymond P. Sullivan, Councilrrpn Mortimer Fried, Councilman
VILLAGE MANAGER
C. Samuel Kissinger
VILLAGE CLERK
Guido H. Inguanzo, Jr.
VILLAGE ATTORNEY
Weiss, Serota & Helfman, P.A.
FINANCE DIRECTOR
Jack Neustadt
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Rachlin & Cohen
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1993
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
PAGE
Letter of Transmittal i
Certificate of Achievement viii
Village of Key Biscayne Organization Chart ix
II. FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW):
1
Combined Balance Sheet - All Fund Types and
Account Groups 3
Statement of Revenues, Expenditures and Changes in
Fund Balance - General Fund 4
Statement of Revenues and Expenditures - Budget and
Actual - General Fund (,Budgetary Basis) 5
Statement of Revenues, Expenses and Changes in
Retained Earnings - Stormwater Utility System 6
Statement of Cash Flows - Stormwater Utility System 7
Index to Notes to Financial Statements 9
Notes to Financial Statements 11
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUPS -
STATEMENTS AND SCHEDULES
GENERAL FUND:
Balance Sheet 19
Schedule of Revenues and-Expenditures
- Budget and Actual (Budgetary Basis)20
FIDUCIARY FUND:
Combining Balance Sheet - Agency Funds 23
Statement of Changes in Assets and Liabilities -
Deferred Compensation Plan 24
Statement of Changes in Assets and Liabilities -
Defined Contribution Plan 25
ACCOUNT GROUPS:
GENERAL FIXED ASSETS ACCOUNT GROUP:
Schedule of General Fixed Assets By Source 27
Schedule of General Fixed Assets By Function
and Activity 28
Schedule of Changes in General Fixed Assets By
Function and Activity 29
GENERAL LONG-TERM DEBT ACCOUNT GROUP:
Schedule of General Long-Term Debt 31
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1993
TABLE OF CONTENTS (CONTINUED)
III. STATISTICAL TABLES (SUPPLEMENTAL DATA):
AGE
Comments on the Statistical Tables 33
General Government Expenditures by Function 35
General Revenues By Sourcq 36
Assessed and Estimated Actual Value of All
Taxable Property 37
Property Values, Construction and Bank Deposits 38
Utilities Service Tax Revenue By Source 39
Franchise Revenue By Source 40
Interest Revenue By Source 41
Principal Taxpayers 42
Demographic Statistics 43
Miscellaneous Statistical Data 44
e
IV. SUPPLEMENTARY AUDITOR'S REPORTS SECTION:
Independent Auditor's Report on Internal Control Structure
in Accordance With Government Auditing Standards 45
Independent Auditor's Report on Compliance in Accordance
With Government Auditing Standards 47
Independent Auditor's Report on Schedule of Federal
Financial Assistance 49
Schedule of Federal Financial Assistance 50
Independent Auditor's Report on Internal Control
Structure Used In Administering Federal
Financial Assistance Programs 51 J
Independent Auditor's Report on Compliance with
General Requirements 54
Independent Auditor's Report on Compliance with
Specific Requirements Applicable to Major Federal
Financial Assistance Programs 55
I
J
Introductory Section
VILLAGE OF KEY BISCAAl NE
Department of Finance and Administrative Services
Village counctl
John F Festa 11a1•or
Joe I Rasco i ice.llavor
Mortimer Fried
Raul Llorente
Beth sine
Rai mond P Sulln an
John Vi aid December 2, 1993
The Mayor and Honorable Members of the Village Council
Village of Key Biscayne, Florida
The Comprehensive Annual Financial Report of the Village of Key Biscayne for The
fiscal year ended September 30, 1993, is hereby submitted. Responsibility for both the
accuracy of the data, and the completeness and fairness of the presentation, including
all disclosures, rests with the Village. To the best of our knowledge and belief, the
enclosed data are accurate in all material respects and are reported in a manner
designed to present fairly the financial position and results of operations of the various
funds and account groups of the Village. All disclosures necessary to enable the
reader to gain an understanding of the Village's financial activities have been included.
The comprehensive annual financial report is presented in four sections. The
introductory section includes this transmittal letter, the Village's organizational chart
and a list of principal officials, The financial section includes the auditor's report on
the financial statements and the individual fund and account group financial statements
and schedules. The statistical section includes selected financial and demographic
information. The fourth section contains the Report on Internal Control Structure and
the Report on Compliance with Laws and Regulations and the Single Audit Reports
submitted by our auditors.
Government Structure
The Village of Key Biscayne was incorporated on June 18, 1991, and operates under a
Council-Manager form of government. The Village Council is comprised of the
Mayor and six members and is responsible for enacting ordinances, resolutions and
regulations governing the Village as well as appointing the members of various
advisory boards, the Village Manager, Village Attorney and Village Clerk. As Chief
Administrative Officer, the Village Manager is responsible for enforcement of laws
and ordinances and appoints and supervises the department heads of the Village.
85 West McIntyre Street - hey Biscayne, Florida 33149 - (305) 365-8903 - Fax (305) 365-5556
\1151,10\ cTATEME\T "TO PRO\71)E A S\FE Qf ALM 10\1\11 \IT) E\l IRO\\fE\7 FOR A11 1SL4\DERS THROt GH RESPO\SIBLE GOVER ME\ f
ECONOMIC CONDITIONS AND OUTLOOK
General Information
Location
Key Biscayne is a barrier island situated between the Atlantic Ocean to the east and
Biscayne Bay to the west. The island is located just south of Virginia Key, a separate
island connected to the mainland south of downtown Miami by the Rickenbacker
Causeway. The 1990 U.S. Census population was 8,854 and another 4,000 reside on
the island seasonally.
The Village, an incorporated municipality of approximately 1.25 square miles, is
located on the Island of Key Biscayne and is bordered to the north by Crandon Park, a
960 acre county park administered by Dade County, and to the south by Bill Baggs
Cape Florida State Recreation Area, q, park of approximately 600 acres.
DISLOCATION EVENT AND ITS IMPACT;
On Monday, August 24, 1992, Hurricane Andrew paid a visit to Key Biscayne making
an impact that will be felt for decades. Water caused flooding of homes, schools,
businesses, hotels, streets, and landscaping. Wind did additional damage to structure
and vegetation.
MAJOR INCENTIVES:
During the initial year of incorporation, most services were provided by Dade County.
Property taxes for the year were assessed, collected, and retained by Dade County.
The Village advised Dade County, as provided in the interlocal agreement with the
county, that the Village Police Department would be activated on March 1, 1993, and
the Village Fire Rescue Department would be activated on October 1, 1993.
The Village Council adopted the 1993-94 General Fund Budget on September 27,
1993.
P
1-1
FINANCIAL INFORMATION
Accounting System, Internal and Budgetary Control
The Village's accounting records for governmental funds operations are maintained on
a modified accrual basis, with revenues being recorded when available and measurable,
and expenditures being recorded when the services or goods are received and the
liabilities are incurred.
Budgetary control is maintained at the fund level. Expenditures that could result in an
overextended balance are not released until additional appropriations are made
available.
Internal accounting controls have been designed to provide reasonable, but not
absolute, assurance regarding safeguarding of assets against loss from unauthorized use
or disposition and the reliability of financial records for preparing financial statements
and maintaining accountability. The concept of reasonable assurance recognizes that
the cost of control should not exceed the benefits likely to be derived and the
evaluation of costs and benefits requires estimates and judgement by management.
All internal control evaluations occur within the above framework. We believe the
Village's internal accounting controls adequately safeguard assets and provide
reasonable assurance of proper recording of financial transactions.
Reporting Entity and its Services
The Village includes for financial reporting purposes, in conformance with NCGA
Statement 3, all funds and account groups that are controlled by or dependent upon the
Village Council.
The Village currently provides the following services for its citizens:
Public Safety, Police and Fire Rescue, Planning and Zoning, Building Permits,
Public Works, Parks and recreation facilities, Development, General and
Administrative services.
iii
Reportins Standards
The form and content of the Comprehensive Annual Financial Report and the
accompanying financial statements and statistical tables were prepared in conformance
with standards set forth by:
1. Governmental Accounting Standards Board (GASB)
2. Financial Accounting Standards Board (FASB)
3. National Council on Governmental Accounting (NCGA)
4. The Auditor General, State of Florida
5. The Charter of the Village of Key Biscayne
6. The Government Finance Officers Association of the United States and Canada
General Government Functions
The General Fund is the general operating fund of the Village. General tax revenues
and other receipts that are not allocatyd by law or contractual agreement to some other
fund are accounted for in this fund. General operating expenditures, fixed charges and
capital improvement costs not paid through other funds are paid from this fund.
The amount of revenues from various sources and their percent to total are shown in
the following schedule:
Revenues:
Revenue Sources
Percent
Amount of Total
Utility Taxes $1,212,084 12.6%
Franchise Fees 625,015 6.5%
Property Taxes 3,536,480 36.8%
Intergovernmental 718,366 7.5%
Licenses and Permits 308,676 3.2%
Charges for Services 50,057 .5%
Impact Fees 1,100,000 11.4%
2%Donations 21,343 .
Other 63,889 .7%
Interest 121,676 1.3%
FEMA 1,165,864 12.1%
Hurricane Loss Grant Revenue 552,749 5.8%
Economic Development Grant 50,000 .5%
Gain on Sale of Investments 83.197 .9%
Total Revenues 59.6 low
The Intergovernmental revenue source represents state shared revenues for which the
Village qualified as of July 1, 1992.
Expenditures: (Budgetary Basis)
Function
Percent
Amount of Total
General Government $ 495,454 8.2%
Public Works 185,257 3.1%
Economic Development 36,952 .6%
Community Development 406,055 6.7%
Parks and Recreation 240,794 4.0%
Public Safety 2,790,379 46.0%
Hurricane 1,251,264 20.6%
Non-Departmental 421,619 7.0%
ital outlayca 237.513 3.8%p
Total Expenditures S6,0®65,287 10
An analysis of changes from fiscal 1992 is not meaningful since fiscal 1993 is the first
full year of operations.
Fiduciary Funds
Fiduciary Funds are Trust and Agency Funds established for the purpose of accounting
for assets held in a trustee capacity or as an agent for individuals, private organizations
and other government. As of September 30, 1993, the following were recorded as
Fiduciary Funds:
Deferred Compensation
The Deferred Compensation Fund accounts for certain deferred compensation plans
offered by the Village for its employees. These plans were created in accordance
with Internal Revenue Codes Sections 457 and 401. The plans, managed by
independent plan administrators, permit employees to defer a portion of their salary
until future years. The Deferred Compensation fund had $25,647 in investments for
the fiscal year ended September 30, 1993.
Cash Management
The Village had two cash management vehicles in this first fiscal year; an investment
account or money market account in the Key Biscayne Bank under an agreement
which provides for overnight investments of both the investment account and the
operating account.
In addition, the Village has an investment account with the Florida Local Government
Trust Fund administered by the State Board of Administration, which as of September
30, 1993 had a balance of $5,121,802. This will be the primary cash management
vehicle for surplus funds.
V
Department Administration
The Village established a one million dollar line of credit with the Key Biscayne
Bank. The Village, on September 22, 1992, borrowed $250,000 against that Credit
Line to pay contractors hired to remove debris caused by Hurricane Andrew. This
loan was repaid on October 23, 1992.
Risk Management
The Village is insured with the Florida Municipal Insurance Trust for liability and
property coverages; and with the Florida Municipal Self Insurance Fund for Workers
Compensation coverage. The liability limit under the policy is $5,000,000.
Enterprise Funds
Enterprise Funds are established to finance and account for the acquisition, operation
and maintenance of facilities and services, and the cost of providing these goods and
services on a continuing basis is financed through the collection of charges from users.
For the 1993-94 Fiscal Year, the Village Council established a budget for the
Stormwater Management Utility Fund. The Village is in the process of having the
engineering firm of Williams, Hatfield and Stoner design and prepare plans for the
Stormwater Management System.
General Fixed Assets
The general fixed assets of the Village are those assets used in the performance of
general governmental functions. In accordance with generally accepted accounting
principles for local governments, the Village does not record depreciation on general
fixed assets nor does it record roads, bridges, curbs and gutters, streets and sidewalks,
drainage systems, and similar assets that.are immovable and of value only to the
Village. Assets are recorded at cost except donations which are recorded at fair
market value at the date of receipt. As of September 30, 1993, the general fixed assets
acquired amount,to $480,229.
Independent Audit
Provisions in the State Statutes require an annual audit of the books of account,
financial records and transactions of all administrative departments of the Village by
independent Certified Public Accountants. This requirement has been complied with
and the auditor's report has been included in this report.
Certificate of Achievement for Excellence in
Financial Reporting
The Government Finance Officers Association of the United States and Canada
(GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting.
The Certificate of Achievement is the highest form of recognition for excellence in
state and local government financial reporting. In order to be awarded a Certificate of
Achievement, a government unit must publish an easily readable and efficiently
organized Comprehensive Annual Financial Report whose contents conform to
program standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements. The fiscal 1992 report received the
Certificate, a copy of which is included in this report.
Acknowledgements
The preparation of this report could not have been accomplished without the efficient
and dedicated services of the staff of the Village.
We express our appreciation to all members of the Staff who assisted and contributed
to the preparation of this report. A special vote of thanks and appreciation is also
extended to the firm of Rachlin and 6ohen for their professional approach and high
standards in the conduct of their independent audit of the Village's financial records
and transactions.
Respectfully submitted,
C. Samuel Kissing
Village Manager
Jack Neustadt
Finance Director
vii
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Key Biscayne,
Florida
Fop its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1992
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Z. ~; re4P Executive Director
VILLAGE OF KEY BISCAYNE, FLORIDA
ORGANIZATIONAL CHART
VIL &ot
ATTORNEY
YMI AGE ouNaL l
VILLAGE
XAYOK
MILEAGE M1 tAGEL
::: ~:E~ONO~z
[GENERAL GOVERNMENT,PARKS & RECREATION
.. ......... 1
UILDING,''LING K7
PIANNING
INDEPENDENT AUDITOR'S REPORT
Financial Section
RACHLIN & COHEN
CERTIFIED PUBLIC ACCOU\TA\TS & CO\SL LT,\\TS
A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS
1320 SOUTH DIXIE HIGH%N 40
PE\ THOLSE
CORAL GABLES, FLORIDA 33 1 46-2 964
TELEPHONES DADE (305) 667-0412
BRONti ARD (305) 764-7717
Fax (305) 665-7456
700 SO[ THLAST THIRD A\ FM E
SLITS 400
FT LALDERDALF, FLORIDA 33316-1102
TFLEPHO \Es: BRO\A ARD (305) 764-7717
DADF (305) 667-0412
FAx (305) 764-7835
Independent Auditor's Report
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key
Biscayne, Florida as of September 30, 1993 and for the year then ended, as listed
in the table of contents. These general purpose financial statements are the
responsibility of the Village's management. Our responsibility is to express an
opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and 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 financial statements. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present
fairly, in all material respects, the financial position of the Village of Key
Biscayne, Florida, at September 30, 1993 and the results of its operations and
cash flows of its enterprise fund for the year then ended, in conformity with
generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The combining and individual fund and account
group financial statements and schedules for the year ended September 30, 1993
as listed in the table of contents are presented for purposes of additional analysis
and are not a required part of the general purpose financial statements of the
Village of Key Biscayne, Florida. Such information has been subjected to 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 procedure applied in the audit of the general
purpose financial statements and, accordingly, we express no opinion thereon.
Coral Gables, Florida
December 2, 1993
MEMBER OF SUIVIT I\TER\ATIO\ALASSOCIATES, I\C. KITH OFFICES 1\ PRI\CIPAL CITIES THROL GHOL T THE WORLD
\IF %IRF.R OF THE AAIFRICA\ 1 \1;TITI TF OF CFRTIFIFO PI RI If Armi \TA\TS Fh\ ISIO\ FOR SEC PRACTICE SECTION A\D THE. PRI\ ATF COAIPA\IFS PRACTICE SFCTIO\
GENERAL PURPOSE
FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1993
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992)
Totals
Fund Type Fund Type Fund Tyne Account Groups (Memorandum Only)
Governmental Proprietary Fiduciary
General General
General Enterprise Agency Fixed Assets Long-Term Debt 1993 1992
ASSETS AND OTHER DEBITS
Cash $4,435,374 $ -$ -S -S -$4,435,374 $ 114,297
Investments, At Market 1 184,136 184,136 4,113
Due From FEMA 91,515 --91,515 1,887,674
Due From Other Funds 115,410 --115,410 -
Deposits on Contracts 403,794 --403,794 50
Restricted Assets - Cash 1,100,000 --1,100,000 -
General Fixed Assets 480,229 480,229 65,261
Amount to be provided for
General Long-term Debt 1.000.000 1.000.000
Total Assets and Other
Debits 6 146 093 ~_184 136 480 229 1 000 000 7 810 458 2 071 395
LIABILITIES. FUND BALANCE AND OTHER
CREDITS
LIABILITIES:
Accounts Payable and Accrued
Expenses $ 881,322 $ 26,507
e
S -S -$ -$ 907,829 8 106,199
Due to Other Funds -115,410 ---115,410 -
Note Payable ------250,000
Deferred FEMA Revenue 106,309 ----106,309 1,194,394
Deferred Rent 9,690 ----9,690 13,130
Deferred Benefits Payable --184,136 --184,136 4,113
Note Payable - FEMA ----1,000.000 1.000.000
Total Liabilities 997.321 141.917 184.136 -1.000.000 2,323.374 1,567,836
FUND BALANCE AND OTHER CREDITS:
Investment in General Fixed Assets ---480,229 -480,229 65,261
Fund balance:
Reserved for Future Debt Service 1,000,000 1,000,000
Reserved for Encumbrances 165,565 165,565 -
Reserved For Beach Improvements 20,945 20,945 20,237
Reserved for Beautification of
Crandon Blvd.1,100,000 1,100,000
Reserved for Recreation
Facilities 1,100,000 1,100,000
Reserved for Police/Fire
Equipment and Building 367,416 367,416
Reserved for Grant Audits 541.024 541.024
Total Reserved 4.294.950 -480-229 -4.775.179 85.498
Unreserved 853,822 ----711,905 418,061
Deficit -(141.917)--
Total Fund Balance and Other
Credits 5.148.772 (141.917)-480.229 -5.487.084 503.559
Total Liabilities, Fund Balance
and Other Credits 6 146 093 !184 136 480 229 1 000 000 7 810 458 2 071 395
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 1993
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1992)
1993
REVENUES:
Utility Taxes
Franchise Fees
Property Taxes
Intergovernmental
Licenses and Permits
Charges for Services
Impact Fees
Donations
Other
Interest
FEMA
Grants
Gain on Sale of Investments
Total Revenues
EXPENDITURES:
Current:
General Government
Public Works
Economic Development
Community Development
Parks and Recreation
Public Safety
Hurricane
Non-Departmental
Capital Outlay
Total Expenditures
EXCESS REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES:
Loan Proceeds from FEMA
EXCESS REVENUES AND OTHER SOURCES
OVER EXPENDITURES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
$1,212,084
625,015
3,536,480
718,366
308,676
50,057
1,100,000
21,343
63,889
121,676
1,165,864
602,749
83.197
9,610.196
495,454
185,257
36,952
406,055
240,794
2,742,172
1,251,264
421,619
120.155
5.899.722
3,710,474
1.000.000
4,710,474
438.298
15,148,77722
438,298
S 438.298
1992
$ 979,236
151,392
60,738
15,766
23,276
4,480
783,280
2.018.168
484,051
86,580
45,408
11,779
13,511
783,280
90,000
65.261
1.579.870 J
L
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
-4-
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND
(BUDGETARY BASIS)
FISCAL YEAR ENDED SEPTEMBER 30,1993
BUDGET ACTUAL
VARIANCE
FAVORABLE
(UNFAVORABLE)
REVENUES:
Utility Taxes $ 850,000 $1,212,084 $ 362,084
Franchise Fees 490,000 625,815 135,815
Property Taxes 3,502,728 3,536,480 33,752
Intergovernmental 530,672 718,366 187,694
Licenses and Permits 121,000 308,676 187,676
Charges for Services 16,700 50,057 33,357
Impact Fees -1,100,000 1,100,000
Donations -21,343 21,343
Other 121100 63,889 51,789
Interest 5,000 121,676 116,676
FEMA -1,165,864 1,165,864
Grants 230,700 602,749 372,049
Gain on Sale of Investments 100 83.197 83.097
e
Total Revenues 5.759.000 9.610.196 3.851.196
EXPENDITURES:
Current:
General Government 507,700 495,454 12,246
Public Works 431,200 185,257 245,943
Economic Development 75,000 36,952 38,048
Community Development 473,400 406,055 67,345
Parks and Recreation 322,500 240,794 81,706
Public Safety 3,050,000 2,790,379 259,621
Hurricane -1,251,264 (1,251,264)
Non-Departmental 615,592 421,619 193,973
ital OutlayCa 283.608 237.513 46.095p
Total Expenditures 5.759.000 6.065.287 ( 306.287)
EXCESS REVENUES OVER EXPENDITURES S $3.544.909 53.544.909
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
-5-
VILLAGE OF KEY BISCAYNE, FLORIDA
STORMWATER UTILITY SYSTEM
STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1993
OPERATING REVENUE
OPERATING EXPENSES 141.917
NET LOSS (141.917)
RETAINED EARNINGS, BEGINNING OF YEAR
RETAINED EARNINGS (DEFICIT), END OF YEAR 141 917)
I
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
-6-
VILLAGE OF KEY BISCAYNE, FLORIDA
STORMWATER UTILITY SYSTEM
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED SEPTEMBER 30,1993
NET LOSS $(141.917)
ADJUSTMENTS TO RECONCILE NET LOSS TO
NET CASH PROVIDED BY OPERATING
ACTIVITIES:
Increase in Accounts Payable 26,507
crease in Due to General FundI 115.410n
ustmentsl AdtT 141.917jao
Net cash provided by operating activities
CASH, BEGINNING OF YEAR PO
CASH, END OF YEAR
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
-7-
NOTES TO FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
INDEX TO NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 1993
PAGE
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1)Financial Reporting Entity 11
(2)Basis of Presentation - Fund Accounting 12
(3)Financial Statement Measurement Focus 13
(4)Basis of Accounting 14
(5)Budgets And Budgetary Accounting 15
(6)Encumbrances 15
(7)Memorandum Only - Total Columns 15
NOTE B - DEPOSITS AND INVESTMENTS 16
NOTE C - PROPERTY TAXES 16
NOTE D - LONG-TERM DEBT 17
NOTE E - LITIGATION, COMMITMENTS AND CONTINGENCIES 17
NOTE F - DEFERRED COMPENSATION PLAN 18
NOTE G - DEFINED CONTRIBUTION PLAN 18
NOTE H - SUBSEQUENT EVENT 18
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED SEPTEMBER 30, 1993
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of the Village of Key Biscayne's significant accounting policies
is presented to assist the reader in interpreting the general purpose financial
statements and other data in this report. The policies are considered essential
and should be read in conjunction with the accompanying general purpose financial
statements.
The accounting policies of the Village of Key Biscayne conform to generally
accepted accounting principles (GAAP) as applied to governmental units. This
report, the accounting systems and classification of accounts conform to
standards of the Governmental Accounting Standards Board (GASB) and the
Government Finance Officers Association of the United States and Canada (GFOA),
which is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. Accounting treatment and the
financial statements also incorporate current recommendations of the National
Committee on Governmental Accounting and auditing standards of the American
Institute of Certified Public Accountants included in the Industry Audit Guide
"Audits of State and Local Governmental Units".
s
1. Financial Reporting Entity
The Village of Key Biscayne (Village), located in Dade County, is a political
subdivision of the State of Florida.
The Village, which was incorporated in 1991, operates under a Council-Manager
form of government. Under the initial government, six council members
and the Mayor were elected by the voters. The Village held municipal
elections for fiscal year 1993. Effective for fiscal year 1995, each council
member will serve a four year term (limited to two consecutive terms).
The Mayor will hold office for a two year term (limited to two consecutive
terms). The Vice-Mayor is appointed by the council and Mayor for a one
year term. During the absence or incapacity of the Mayor, the Vice-Mayor
shall have all the powers, authority, duties and responsibilities of the
Mayor. The Mayor serves as chairperson of public meetings and executes
certain documents authorized by charter, ordinance or resolution. In
addition to the general government function, the Village provides its
residents with public works, public safety, parks and recreation, and
community development functions. The Village does not provide educational
or hospital facilities. Those services are provided by the Dade County
School Board and Metropolitan Dade County, respectively.
This report includes financial statements of the funds and account groups
required to account for those financial activities which are related to
the Village and are controlled by or dependent upon the Village's legislative
body, the Village Council. Control or dependence upon the Village was
determined on the basis of budget adoption, taxing authority, or the
Village's legal responsibility to fund any deficits that may occur. The
Village does not have component units.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED SEPTEMBER 30, 1993
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. Basis of Presentation - Fund Accounting
The Village's accounting systems are organized and operated on the basis
of funds and account groups, which are the basic fiscal and accounting
entities in governmental accounting. A fund is a separate accounting entity
with a self-balancing set of accounts. An account group is a financial
reporting device designed to provide accountability for certain assets
and liabilities that are not recorded in the funds because they do not
directly affect net expendable available financial resources. The funds
and account groups are classified as follows:
GOVERNMENTAL FUND
The GENERAL FUND is the general operating fund of the City. It is used
to account for all financial resources except those that are required
to be accounted for in specific funds. Resources are generated primarily
from property taxes, local utilities service taxes, franchises, licenses
and permits, intergovernmental revenue and charges for services.
Expenditures are incurred to provide public safety, general government,
recreation, community development and public works services.
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PROPRIETARY FUND
The ENTERPRISE FUND is used to account for operations that are financed
and operated in a manner similar to private business enterprises, where
the intent of the governing body is that the costs (including depreciation)
of providing goods or services to the general public on a continuing
basis be financed or recovered primarily through users charges. The
Village's enterprise operation consist solely of a stormwater utility
system.
AGENCY FUNDS
The AGENCY FUNDS are used to account for assets that the Village holds
on behalf of others as their agent.
ACCOUNT GROUPS
ACCOUNT GROUPS are used to establish accounting control and accountability
over the Village's general fixed assets and the unmatured principal of
its general long-term debt. Accordingly, the Village maintains a General
Fixed Asset Account Group and a General Long-Term Debt Account Group.
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VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED SEPTEMBER 30, 1993
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3. Financial Statement Measurement Focus
The accounting and reporting treatment applied to the fixed assets
associated with the general fund is determined by that fund's measurement
focus.
GOVERNMENTAL FUND
This fund is used to account for the Village's expendable financial
resources and related current liabilities. Measurement focus is upon
financial flow and financial position (sources, uses and balances of
resources), rather than upon net income determination. Only current
assets and current liabilities are included on its balance sheet with
fund balance representing available spendable resources. Basic financial
statements necessary to fairly present financial position and operating
results for this fund are the Balance Sheet and the Statement of Revenue,
Expenditures and Changes in Fund Balance.
PROPRIETARY FUND
This fund is used to account for the Village's stormwater utility system.
Financial activity is reported in essentially the same manner as in
commercial accounting where net income and capital maintenance are
measured. All assets and all liabilities (whether current or noncurrent)
are included in their financial statements.
Measurement focus is upon determination of net income, financial position
and cash flows. The basic financial statements required for this fund
are the Balance Sheet, the Statement of Revenue, Expenses and Changes
in Retained Earnings and the Statement of Cash Flows.
FIDUCIARY FUNDS
Agency funds are custodial in nature (assets equal liabilities) and do
not involve measurement of results of operations.
GENERAL FIXED ASSETS ACCOUNT GROUP
Fixed assets used in governmental fund type operations are accounted
for in the General Fixed Assets Account Group, rather than in the
governmental funds. General fixed assets purchased are initially reported
as expenditures in the general fund and are capitalized at historical
cost or estimated cost if actual historical cost is not available in
the general fixed assets account group, except for certain infrastructure
improvements which include streets, alleys, sidewalks, drainage and
lighting systems. Depreciation is not required and has not been provided
on general fixed assets.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED SEPTEMBER 30, 1993
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3. Financial Statement Measurement Focus (Continued)
LONG-TERM DEBT ACCOUNT GROUP
Noncurrent liabilities that are expected to be financed from governmental
funds, are excluded from governmental fund financial statements because
of the spending measurement focus of such funds. Net current assets
of governmental funds are not affected by such liabilities, therefore,
these long-term amounts are instead accounted for and reported as
liabilities in the General Long-Term Debt Account Group. The Village's
long-term liabilities that are reported in this manner consist of a note
payable to FEMA.
4. Basis of Accounting
The basis of accounting refers to the timing when revenues and expenditures
are recognized in the accounts and reported in the financial statements.
GOVERNMENTAL AND AGENCY FWNDS
These funds use the modified accrual basis of accounting. Under the
modified accrual basis of accounting revenues are recorded when susceptible
to accrual; i.e., when both measurable and available. Available means
collectible within the current period or soon enough thereafter to be
used to pay liabilities of the current period.
Generally, revenues are recognized when earned except for certain revenue
sources which are not susceptible to accrual. Revenues in the following
categories are considered susceptible to accrual because they are both
measurable and available to finance expenditures of the current period:
• Property Taxes • Interest Earned
• Intergovernmental Revenues
and Grants
The following revenues are not considered susceptible to accrual in the
governmental fund because they are not both measurable and available
to finance expenditures of the current period:
Licenses and Permits
• Utility Taxes
• Franchise Fees
The Village reports deferred revenues in its balance sheet. Deferred
revenues arise when a potential revenue does not meet both the "measurable
and available criteria" for recognition in the current period. In
subsequent periods, when both revenue recognition criteria are met, the
liability for deferred revenue is removed from the balance sheet and
revenue is recognized.
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VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED SEPTEMBER 30, 1993
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4. Basis of Accounting (Continued)
GOVERNMENTAL AND AGENCY FUNDS (CONTINUED)
Expenditures are generally recognized when the related liability is
incurred. Exceptions to this rule are: 1) accumulated unpaid vacation
and sick pay, worker's compensation and capital leases, are not recognized
in the General Fund since the amount to be liquidated from available
spendable resources is recorded in the General Long-Term Debt Account
Group; 2) principal and interest on general long-term debt which is
recorded as an expenditure on its due date. Neither of the two exceptions
noted above relate to the financial reporting of the Village.
PROPRIETARY FUND
The Proprietary Fund is accounted for using the accrual basis of
accounting. Revenues are recognized when earned and expenses are
recognized when incurred.
5. Budgets and Budgetary,Accounting
The Village is legally required to adopt an annual budget for its General
Fund. Budgets are controlled at the fund level. The Village Manager is
authorized to transfer budgeted amounts within the departments, within
any fund. Budgets can be amended during the fiscal year by Council adoption
of the proposed amendments. The budget is prepared on a basis consistent
with the basis of accounting utilized for the respective fund. There were
no supplemental budgetary appropriations in the current fiscal year.
6. Encumbrances
Encumbrance accounting is utilized under which purchase orders, contracts
and other financial commitments for expenditures are recorded in order
to reserve that portion of the appropriation. Encumbrances outstanding
at year end are reported as reservations of fund balance. As of September
30, 1993 the following analysis reconciles expenditures reported on a GAAP
basis versus budgetary basis:
Excess Revenue over expenditures (Budgetary Basis)$3,544,909
Encumbrances 165.565
Excess Revenue over expenditures (GAAP Basis)$3.71 474
7. Memorandum Only - Total Columns
Total columns on the various statements which are captioned "Memorandum
Only", aggregate the columnar amounts presented by fund type and account
group and are presented only to facilitate financial analysis. Data in
these columns do not present financial position or results of operations
in conformity with generally accepted accounting principles. Neither is
such data comparable to a consolidation. Interfund eliminations have not
been made in the aggregation of this data.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED SEPTEMBER 30, 1993
B. DEPOSITS AND INVESTMENTS
At September 30, 1993, the Village maintained deposits (cash) with book balances
of $5,535,374. The total balance per bank was $826,136 and the balance of
deposits held at the State Board of Administration was $5,121,802. The
difference between the bank balance and the Village's book balance is due to
outstanding checks and deposits in transit.
In addition to insurance provided by the Federal Depository Insurance Corporation
(FDIC), all deposits are held in banking institutions approved by the State
Treasurer of the State of Florida, to hold public funds. Under Florida Statutes
Chapter 280, Florida Security for Public Deposits Act, the State Treasurer
requires all Florida qualified public depositories to deposit with the Treasurer
or another banking institution eligible collateral equal to from 50% to 125%
of the average daily balance for each month of all public deposits in excess
of any applicable deposit insurance held. The percentage of eligible collateral
(generally in the form of U.S. Government and agency securities, state or local
government debt, or corporate bonds) to public deposits is dependent upon the
depository's financial history and its compliance with Chapter 280. In the
event of a failure of a qualified public depository, the remaining public
depositories would be responsible for covering any resulting losses.
Accordingly, all amounts reported as cash deposits are deemed as insured and
are, therefore, not subject to classification by credit risk category under
the provisions of GASB Statemgnt No. 3.
Included in the agency funds are investments, which are stated at market value,
and are held by the ICMA Retirement Trust.
CARRYING MARKET
VALUE VALUE
Investments in mutual funds 184 136 $184,136
C. PROPERTY TAXES
Property values are assessed on a county-wide basis by the Metropolitan Dade
County Property Appraiser as of January 1, the lien date, of each year. Taxable
value of property within the Village is certified by the Property Appraiser
and the Village levies a tax millage rate upon the taxable value which will
provide revenue required for the fiscal year beginning October 1.
Property taxes levied each October 1, by the Village and all other taxing
authorities within the County, are centrally billed and collected by Dade County,
with remittances to the Village of their proportionate share of collected taxes.
Taxes for the fiscal year beginning October 1 are billed in the month of
November, subject to a 1% per month discount for the period November through
February, and are due no later than March 31. On April 1, unpaid amounts become
delinquent with interest and penalties added thereafter. Beginning June 1,
tax certificates representing delinquent tax with interest and penalties are
sold by Dade County, with remittance to the Village for its share of those
receipts.
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VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED SEPTEMBER 30, 1993
D. LONG-TERM DEBT
The Village obtained a $1,000,000 loan on June 7, 1993 from the Federal Emergency
Management Agency (FEMA) at a rate of 5.68% per year. The principal and
interest, less amounts that may be canceled pursuant to Section 417 of the
Stafford Disaster Relief and Emergency Assistance Act are due on June 7, 1998
unless extended at the sole discretion of the lender.
E. LITIGATION, COMMITMENTS, AND CONTINGENCIES
Litigation
The Village is involved in several lawsuits the outcome of which in the opinion
of management should not have a material effect on the financial position
of the Village.
Commitments
1. The Village is obligated under a non-cancelable operating lease for office
space for a period of three years commencing March 1, 1992. Rent expense
was $38,000 for fiscal year 1993. The following is the commitment under
the lease:
Fiscal Year 1994 $44,000
1995 18,000
2. In August 1992, the Village entered into an interlocal agreement with
Metropolitan Dade County in order to 1) delineate the responsibilities
for service levels, and costs of municipal services to be provided to
the Village by the County for the fiscal year 1992 transition year, and
for future fiscal years, and 2) outline the general terms of future lease
agreements between the County and the Village concerning specified capital
assets.
Contingent Liability
Federal Programs in which the Village participates were audited in accordance
with the provisions of U.S. Office of Management and Budget Circular A-128,
Uniform Requirements for Grants to State and Local Government. Pursuant
to the provisions of Circular A-128, certain major and non-major programs
were tested for compliance with applicable grant requirements. While no
matters of noncompliance were disclosed by audit, the Federal Government
may subject grant programs to additional compliance tests which may result
in disallowed expenditures. In the opinion of management, future disallowances
of current grant expenditures, if any, would not have a material effect on
the Village's financial statements.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FISCAL YEAR ENDED SEPTEMBER 30, 1993
F. DEFERRED COMPENSATION PLAN
The Village of Key Biscayne established a deferred compensation plan in fiscal
year 1993. The plan is voluntary and the Village does not contribute. Employees
may elect to defer up to 25% of their annual income, not to exceed $7,500
annually. Deferred compensation deposits are made into the employees' accounts
through payroll deductions before income taxes are withheld. Contributions
by the employees for the fiscal year ended September 30, 1993 were $25,647.
It is the opinion of the Village that the Village has no liability for losses
under the plan but does have the duty of due care that would be required of
an ordinary prudent investor. The plan assets are the property of the Village
subject only to the claims of.the Village's general creditors. Participant
rights under the plan are equal to those of general creditors in an amount
equal to the fair market value of the deferred account of the participants.
G. DEFINED CONTRIBUTION PLAN
The Village of Key Biscayne is a single employer that contributes to the Village
of Key Biscayne Money Purchase Plan, which is a defined contribution pension
plan. The plan currently covers all full-time employees of the Village. Under
this plan, the Village contributes 11% and the employee contributes 6%. Employer
contributions for fiscal year ended September 30, 1993 were $96,318 while the
employee contributions were $51,784.
A defined contribution pension plan provides pension benefits in return for
services rendered, provides an individual account for each participant and
specifies how contributions to the individual's account are to be determined
instead of specifying the amount of benefits the individual is to receive.
Under a defined contribution pension plan, the benefits a participant's account
will receive depends solely on the amount contributed to the participant's
account, the returns earned on investments on those contributions, and
forfeitures of other participants' benefits that may be allocated to such
participant's account. Assets of the plan are considered assets of the Village.
Although 100% vested from the first day of employment, the employees share
equal risk with other general creditors of the Village in the unlikely event
these assets would be needed to pay for liabilities of the Village.
The Village's total payroll and covered payroll for fiscal year 1993 is
$1,133,473.
The Money Purchase Plan held no securities of the Village or other related
parties during the year or as of the close of the fiscal year.
H. SUBSEQUENT EVENT
In December 1993, the Village obtained financing of $9.2 million from a bank
for 10 years at the rate of 4.36%. The debt was incurred to purchase land
and is collateralized by the pledge of utility tax revenues.
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COMBINING AND INDIVIDUAL
FUND AND ACCOUNT GROUPS
STATEMENTS AND SCHEDULES
GOVERNMENTAL FUND
0 GENERAL FUND
GENERAL FUND
.-
• The General Fund is the principal
fund of the Village and is used to
account for resources traditionally
associated with governments which
are not required to be accounted
for, in°N'nothertY,,fund.
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
BALANCE SHEET
SEPTEMBER 30, 1993
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992)
ASSETS 1993 1992
Cash $4,435,374 $ 114,297
Due from FEMA 91,515 1,887,674
Due from other funds 115,410 -
Deposits on contracts 403,794 50
Restricted Assets - cash 1.100.000 -
Total Assets S6.146.093 52.002.021
LIABILITIES AND FUND BALANCE
Liabilities: s
Accounts payable and accrued expenses $ 881,322 $ 106,199
Note payable - 250,000
Deferred FEMA revenue 106,309 1,194,394
Deferred rent 9.690 13.130
Total Liabilities 997.321 1.563.723
Fund balance:
Reserved for future debt service 1,000,000 -
Reserved for encumbrances 165,565 -
Reserved for beach improvements 20,945 20,237
Reserved for beautification of
Crandon Blvd.1,100,000 -
Reserved for recreation facilities 1,100,000 -
Reserved for police/fire equipment
and building 367,416 -
Reserved for grants audits 541.024
Total Reserved 4.294.950
Unreserved 853,822 438,298
Total Fund Balance 5.148.772
Total Liabilities and Fund Balance $6.146.093 S2.0~02.0 11
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
(BUDGETARY BASIS)
FISCAL YEAR ENDED SEPTEMBER 30, 1993
UTILITY TAXES
FRANCHISE FEES
PROPERTY TAXES
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
850,000 $1,212,084 ,$ 362.084
490,000 625,815 135,818
3,502.728 3,536,480 33.752
INTERGOVERNMENTAL
County Shared Revenue 97,000 117,555 20,555
State Shared Revenue 433,672 600.811 167.139
530,672 718,366 187.694
LICENSES AND PERMITS:
Occupational Licenses 20,000 35,746 15,746
Building Permits 100,000 255,008 155,008
Water Meter Permits 1,000 17.922 16.922
121,000 308,676 187.676
CHARGES FOR SERVICES 16.700 50,057 33.357
OTHER:
Donations 400 21,343 20,943
Miscellaneous 11.700 63,889 52.189
12,100 85.232 73.132
INTEREST
IMPACT FEES
GRANT REVENUE
FEMA revenue
Hurricane loss grant revenue
Economic Development Grant
GAIN ON SALE OF INVESTMENTS
Total Revenue
5.000 121,676 116.676
1.100,000 1.100.000
- 1,165,864 1,165,864
180,700 552,749 372,049
50.000 50.000
230.700 1,768,613, 1,537,913
100 83,197 83,097
S5.7~59.00000 $9.610,196 $3,851,196
GENERAL GOVERNMENT:
Legal:
Current Expenditures 243.500 236,557 6,943
Council:
Current Expenditures
Administrative:
Personal Services
Current Expenditures
Capital Outlay
15.000 9,312 5,688
202,250 206,308 (4,058)
46,950 43,277 3,673
283.608 237,513 46.095
532.808 487,098 45,710
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Total General Government S 791.308 $ 732,967 58.341
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (CONTINUED)
(BUDGETARY BASIS)
FISCAL YEAR ENDED SEPTEMBER 30, 1993
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
PUBLIC WORKS:
Current Expenditures S 431.200 ,S 185.257 S 245.943
ECONOMIC DEVELOPMENT:
Personal Services 50,000 17,365 32,635
Current Expenditures 25.000 19.587 5.413
75.000 36.952 38.048
COMMUNITY DEVELOPMENT:
Personal Services 85,500 75,352 10,148
Current Expenditures 387,900 330.703 57.197
473,400 406.055 _ 67.345
PARKS & RECREATION:
Personal Services 95,000 77,529 17,471
Current Expenditures 227.500 163.265 64.235
322.500 _ 240,794 81.706
PUBLIC SAFETY:
Personal Services 992,574 1,008,418 ( 15,844)
Current Expenditures 2.057.426 1.781.961 275.465
3.050.000 2.790.379 259.621
HURRICANE EXPENDITURES:
Current Expenditures 1,251,264 (1.251.264)
NON-DEPARTMENTAL 615.592 421.619 193.973
Total Expenditures S5.759.000 $6.065.287 S( 306.287)
FIDUCIARY FUND
0 AGENCY FUNDS
AGENCY FUNDS
• These Funds are used to account for
assets held for employees in accor-
dance with the provisions of Internal
Revenue Code Sections 401 and 457.
VILLAGE OF KEY BISCAYNE, FLORIDA
AGENCY FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1993
Deferred
Compensation
Plan
Defined
Contribution
Plan Total
ASSETS
at marketInvestments 25 647 $158,489 $184,136,
LIABILITIES
Deferred benefits payable 25 647 158 489 184 136
VILLAGE OF KEY BISCAYNE, FLORIDA
DEFERRED COMPENSATION PLAN
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED SEPTEMBER 30, 1993
Balance Balance
October 1, September 30,
1992 Additions Deletions 1993
ASSETS
Investments, at market L.; . 25 647 2~~7
LIABILITIES
Deferred benefits payable ~~ 25 647
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VILLAGE OF KEY BISCAYNE, FLORIDA
DEFINED CONTRIBUTION PLAN
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED SEPTEMBER 30, 1993
Balance
October 1,
Balance
September 30,
1992 Additions Deletions 1993
ASSETS
Investments, at market 4 113 154 376 s $158,489
LIABILITIES
Deferred benefits payable 4 113 154 376 158 489
GENERAL FIXED ASSETS
ACCOUNT GROUP
• To account for fixed assets used for
general government purposes.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS
BY SOURCE
SEPTEMBER 30, 1993
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1992)
1993 1992
GENERAL FIXED ASSETS:
Furniture and Equipment $ 71,946 $37,106
Equipment 262,444 28,155
Vehicles 145,839
Total General Fixed Assets 1480,229 65 261
INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE:
General Fund 48;5 0229 65 261
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30,
Furniture
and
Fixtures
1993
Equipment Total
GENERAL GOVERNMENT:
Administration $ 37,106 $ 28,155 $ 65,261
PUBLIC SAFETY 6,685 408.283 414.968
43 791 436 438 480 229
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VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 1993
Balance
October 1,
Balance
September 30,
1992 Additions Deletions 1993
GENERAL GOVERNMENT:
Administration $65,261 $ -$ -$ 65,261
T PUBLIC SAFETY -414,968 -414.968
65 261 414 968 Ste,480 229
GENERAL LONG-TERM DEBT
ACCOUNT GROUP
GENERAL LONG-TERM DEBT
ACCOUNT GROUP
0 To account for City's long term debt.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL LONG-TERM DEBT
SEPTEMBER 30, 1993
AMOUNT TO BE PROVIDED FOR PAYMENT
OF GENERAL LONG-TERM DEBT:
Loan from FEMA 51.000.000
GENERAL LONG-TERM DEBT PAYABLE:
Loan from FEMA $1.000.000
Statistical section
VILLAGE OF KEY BISCAYNE, FLORIDA
COMMENTS ON THE STATISTICAL TABLES
SEPTEMBER 30, 1993
The statistical tables in this section reflect the activities of fiscal year 1992
which was the Village's initial year and fiscal year 1993 which was the Village's
first full year of operation.
The following statistical tables recommended by the National Council on Governmental
Accounting are not included for the reasons stated below:
1. Tables which concern general obligation debt are omitted because the Village
has no general obligation debt as of September 30, 1993.
2. Computation of Legal Debt Margin - The Village's charter and the Constitution
of the State of Florida, Florida State Statute 200.181 does not provide for
a legal debt limit.
3. The table of Special Assessment Collections has been omitted because the Village
has no outstanding assessments as of September 30, 1993.
4. Unless otherwise specified, the source of all information was developed within
the Village.
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION
FISCAL
YEAR
GENERAL
GOVERNMENT
PUBLIC
SAFETY
PARKS AND
RECREATION
PUBLIC
WORKS TOTAL
1992 $1,468,000 (1)$ 13,511 $ 11,779 $ 86,580 $1,579,870
1993 2,848,857 (2)2,790,379 240,794 185,257 6,065,287
(1) Includes $783,280 Hurricane Andrew Expenses to 9/30/92.
(2) Includes $1,251,264 Hurricane related expenses 10/1/92 through 9/30/93.
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENT REVENUES BY SOURCE
FISCAL PROPERTY FEES AND INTERGOVERN- UTILITY FRANCHISE
YEAR TAXES (1) LICENSES MENTAL (2) TAXES FEES OTHER INTEREST TOTAL
1992 $ - $ 15,766 $ 934,018 $ 979,236 $151,392 $ 23,276 $ 4,480 $2,018,168
1993 3,536,480 1,458,733(4) 2,486,979(3) 1,212,084 625,815 169,429 121,676 9,610,196
The Village imposed property taxes for the first time for the 1992-93 fiscal year.
Includes FEMA.
Includes FEMA, Hurricane Recovery and Economic Development Grants.
Includes building permit fees and impact fees.
Note: General Fund Only
VILLAGE OF KEY BISCAYNE, FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY
NET ASSESSED
FISCAL REAL PERSONAL PROPERTY
YEAR PROPERTY PROPERTY VALUE
1992-1993 $1,601,826,518 $15,314,570 $1,617,141,088
1993-1994 1,543,711,468 16,345,662 1,560,052,130
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY VALUES, CONSTRUCTION AND BANK DEPOSITS
TOTAL RESIDENTIAL COMMERCIAL
FISCAL
YEAR
PERMITS
ISSUED
NUMBER
OF UNITS VALUATION
PERMITS
ISSUED VALUATION
TOTAL OF
CONSTRUCTION
BANK DEPOSITS (1)
(000s OMITTED)
1992(2)35 25 S 638,483 10 S 401,058 $ 1,039,541 $20,282,998
1993 1,737 1,633 26,822,424 104 4,383,673 31,206,097 18,146,647
SOURCE:(1) Federal Reserve Bank Atlanta, GA. Information is for Metropolitan Dade
County, which the Village of Key Biscayne is a part of. Information is
not available for the Village of Key Biscayne alone.
(2) Village began issuing permits on September 1, 1992.
In
VILLAGE OF KEY BISCAYNE, FLORIDA
UTILITIES SERVICE TAX REVENUE BY SOURCE
FISCAL
YEAR ELECTRICITY TELECOMMUNICATIONS GAS FUEL OIL WATER TOTAL
1992 5676,919 5157,887 $35,552 53,048 (105,830 S 979,736
1993 857,002 199,308 24,184 4,708 126,882 1,212,084
Note: All Utility tax revenues are recorded in the General Fund.
VILLAGE OF KEY BISCAYNE, FLORIDA
FRANCHISE REVENUE BY SOURCE
FISCAL CABLE
YEAR ELECTRICITY TELEVISION TELEPHONE TOTAL
1992 $112,658 $38,734 $ - $151,392
1993 570,605 39,821 15,389 (1) 625,815
Note: All franchise fee revenues are included in the General Fund.
(1) The franchise agreement with Southern Bell was effective October 1, 1992.
VILLAGE OF KEY BISCAYNE, FLORIDA
INTEREST REVENUE BY SOURCE
FISCAL
YEAR-
GENERAL
FUND TOTAL
1992 $ 4,480 $ 4,480
1993 121,676 121,676
VILLAGE OF KEY BISCAYNE, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30, 1993
TAXPAYER
TAXABLE
VALUATION
PERCENTAGE OF
TOTAL ASSESSED
VALUATION
KEY BISCAYNE HOTEL AND VILLAS $40,579,026 2.60%
ROYAL BISCAYNE (SHERATON)37,388,651 2.40
BISCAYNE BEACH HOTEL ASSN. (SONESTA)32,199,108 2.06
FINIVEST INVESTMENT, ET AL (KEY COLONY)10,072,543 0.65
KEY BISCAYNE SHOPPING CENTER 5,689,659 0.36
RED DRAGON'S SANDS (301 OCEAN DRIVE)5,405,294 0.35
FERNWAY BUILDERS, INC. (GALLERIA MALL)5,198,970 0.33
PYRAMID DEVELOPMENT (SO. OCEAN LANE DRIVE)4,970,400 0.32
PICPAN, INC.4,936,397 0.32
C. G. REBOZO (2 HARBOR POINT)4,088,616 0.26
TOTAL $150,528,664 2.65%
SOURCE: Dade County Property Appraisers Office
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHIC STATISTICS
POPULATION
Estimates of Population by Age
UNDER 18 YEARS 18 TO 64 YEARS 65 YEARS OR OLDER
NUMBER PERCENT NUMBER PERCENT NUMBER PERCENT TOTAL
1990 1,646 19 5,684 64 1,524 17 8,854
Estimates of Population by Race
ANGLO BLACK HISPANIC TOTAL
1990 5,028 36 3,790
INCOME *
Per Capita Income
ANGLO BLACK HISPANIC
8,854
AVERAGE PER CAPITA
1990 $44,615 $24,577 $28,341 $37,629
UNEMPLOYMENT RATES**(Percent)
1983 1984 1984 1986 1987 1988 1989 1990 1991 1992 1993
Dade County 9.8 7.8 7.5 6.7 5.8 5.3 6.3 7.0 8.8 10.0 7.7
Village of Key Biscayne - - - - - - - - - 3.8 3.6
* SOURCE: Bureau of Census, Income Division
**SOURCE: State Department of Labor
VILLAGE OF KEY BISCAYNE, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 1993
Date of Incorporation
Form of Government
Area
Miles of Streets
Fire Protection:
Number of Stations
Police Protection:
Number of Stations
Education:
1991
Council-Manager
1.2 Square Miles
20.2 Linear Miles
1
1
Elementary
Attendance Centers
Number of Students
Number of Teachers
Dade County Water & Sewer Authority
Number of Customers
Average Daily Consumption
Sewers:
Number of Customers
Fire Hydrants
Building Permits Issued
Recreation and Culture:
Number of Parks
Number of Libraries
Number of Tennis Centers
Number of Recreational Centers
Employees:
Full Time
1
417
31
1,740
2,500,000 gallons
807
122
1,737
1
1 (Operated by Dade County)
1
1
70
Supplementary Auditor's Reports Section
RACHLIN & COHEN
CERTIFIED PUBLIC ACCOU\T4\TS & COMULTANTS
A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS
1320 SOI TH DIXIE HIGHN A)
PE\THOUSE
CORAL GABLES, FLORIDA 33146-2964
TELEPHONES DADE (305) 667-0412
BRON ARD (305) 764-7717
FAx•(305)665-7456
700 SOI THEAST THIRD A~ Em F
SUITE 400
F7 Lk(DERDALE, FLORIDA 33316-1102
TE LEPHONES' BRON ARD(305) 764-7717
DADE (305) 667-0412
FAX- (305) 764-7835
Independent Auditor's Report on Internal Control Structure
in Accordance With Government Auditing Standards
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key
Biscayne, Florida as of and for the year ended September 30, 1993, and have issued
our report thereon dated December 2, 1993.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are
free of material misstatement.
In planning and performing our audit of the general purpose financial statements
of the Village of Key Biscayne, Florida for the year ended September 30, 1993,
we considered its internal control structure in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements
and not to provide assurance on the internal control structure.
The management of the Village of Key Biscayne, Florida is responsible for establish-
ing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition, and that transactions are executed
in accordance with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted accounting
principles. Because of inherent limitations in any internal control structure,
errors or irregularities may nevertheless occur and not be detected. Also,
projection of any evaluation of the structure to future periods is subject to the
risk that procedures may become inadequate because of changes in conditions or
that the effectiveness of the design and operation of policies and procedures may
deteriorate.
For the purpose of this report, we have classified the significant internal control
structure policies and procedures in the following categories:
-45-
\i-RI R OI SI AIAII I f\ 1 F RA> I u7AAI Awx IN FS IV( \AI I H 01 FI( FS 1A PRIA( HIM CI IIF, I HROI GIi()[I I HI A\ORI D
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
• General Ledger
• Cash Receipts and Disbursements
• Accounts Payable and Related Expenditures
• Fixed Assets
• Revenues and Receivables
• Budget
• Payroll and Personnel
For all of the internal control structure categories listed above, we obtained
an understanding of the design of relevant policies and procedures and whether
they have been placed in operation, and we assessed control risks.
We noted certain matters involving the internal control structure and its operation
that we consider to be reportable conditions under standards established by the
American Institute of Certified Public Accountants. Reportable conditions involve
matters coming to our attention relating deficiencies in the design or operation
of the internal control structure that, in our judgment, could adversely affect
the entity's ability to record, process, summarize, and report financial data
consistent with the assertions of management in the financial statements.
Accounting Software
Due to the fundamental differences between governmental fund and non-governmental
accounting, we strongly recommend that governmental software be utilized to
process, record and summarize the transactions of the individual funds. Due
to the expansion of the Village, the current accounting software will not
properly serve the needs of the Village. We are available to assist you in
acquiring an appropriate software package.
A material weakness is a reportable condition in which the design or operation
of one or more of the internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that would
be material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose
all matters in the internal control structure that might be reportable conditions
and, accordingly, would not necessarily disclose all reportable conditions that
are also considered to be material weaknesses as defined above. However, we believe
none of the reportable conditions described above is a material weakness.
This report is intended for the information of management, the Mayor and Village
Council. This restriction is not intended to limit the distribution of this report,
which is a matter of public record.
Coral Gables, Florida
December 2, 1993
RACHLIN & COHEN
CERTIFIED PUBLIC ACCOL'\TA\TS & CO\ST LTA\TS
A PARTNERSHIP OF PROFESS10\41 ASSOCIATIONS
1320 SOT TH DIXIE HIGHN Al
PF\THOUSE
CORAL GABLES, FLORIDA 33146-2964
TELEPHOAES DADE (305) 667-0412
BROAAARD (305) 764-7717
FAx (305) 665-7456
700 SOT THEAST THIRD A\ F\T F
STITF 400
F 7 LAT DFRDALE, FLORIDA 33316-1102
TF,LEPHO\ES. BRO\AARD (305) 764-7717
DADE (305) 667-0412
FAx:(305)764-7835
Independent Auditor's Report on Compliance
in Accordance With Government Auditin¢ Standards
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key
Biscayne, Florida as of and for the year ended September 30, 1993, and have issued
our report thereon dated December 2, 1993.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the United
States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are
free of material misstatement.
Compliance with laws, regulations, contracts and grants applicable to the Village
of Key Biscayne, Florida is the responsibility of the management of the Village
of Key Biscayne. As part of obtaining reasonable assurance about whether the general
purpose financial statements are free of material misstatement, we performed tests
of the Village of Key Biscayne, Florida compliance with certain provisions of laws,
regulations, contracts and grants. However, our objective was not to provide an
opinion on overall compliance with such provisions.
The results of our tests indicate that, with respect to the items tested, the Village
of Key Biscayne, Florida complied, in all material respects, with the provisions
referred to in the preceding paragraph. With respect to items not tested, nothing
came to our attention that caused us to believe that the Village of Key Biscayne,
Florida had not complied, in all material respects, with those provisions.
In connection with our audit of the general purpose financial statements of the
Village of Key Biscayne, Florida for the year ended September 30, 1993, we report
the following in accordance with Chapter 10.550, Rules of the Auditor General,
Local Governmental Entity Audits which requires that this report specifically
address, but not be limited to, the matters outlined in Rule 10.554(1)(f):
1. No irregularities were reported in the preceding annual financial report.
2. Recommendations made in the preceding annual financial audit have been followed
expect for the matter relating to accounting software, as reported in the report
on the internal control structure.
3. The Village, during fiscal year 1993, was not in a state of financial emergency
as defined by Florida Statutes, Section 218.503(1).
4. Recommendations to improve the local governmental entity's present financial
management, accounting procedures, and internal accounting controls have been
addressed in the report on the internal control structure.
\IFMKkOf SIA1AIII fVIFR\NI OAA1 -WXIATFS IV( \111HOFFK F~IAPRIVIFU CI11T` THRO1(,HOT I IHFNN ORID
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
5. During the course of our audit, nothing came to our attention that caused us
to believe that the Village of Key Biscayne, Florida:
a. Was in violation of any laws, rules or regulations.
b. Made any illegal or improper expenditures.
c. Had improper or inadequate accounting procedures except as addressed in
the report on the internal control structure.
d. Failed to record financial transactions which could have a material effect
on the Village's general purpose financial statements.
e. Had other inaccuracies, irregularities, shortages and defalcations.
Our audit was not directed primarily toward obtaining knowledge toward all
possible improprieties and, accordingly, our study was limited as described
in the second paragraph of this report.
6. The annual financial report for the year ended September 30, 1992 filed with
the Department of Banking and Finance pursuant to Section 218.32 Florida Statutes
was in agreement with the annual financial audit report for the same period.
The annual financial report for the year ended September 30, 1993 was not yet
filed with the Department of Banking and Finance as of the date of our report.
This report is intended solely for use of management and the Auditor General of
the State of Florida and should not be used for any other purpose. This restriction
is not intended to limit the distribution of this report which, upon acceptance
by the Council of the Village of Key Biscayne, Florida, is a matter of public record.
A,Q, , 6,6,
Coral Gables, Florida
December 2, 1993
RACHLIN & COHEN
CERTIFIED P I'BL]c Accot-\TA\TS & CO\SI LTA\TS
A PART\ERSHIP OF PROFESSIO\AL ASSOCIATIONS
1320 SOl TH DIXIE HIGHA~ Al
PF\THOISE
CORAL GABLFs, FLORIDA 33146-2964
TELEPHO\Es DADE (305) 667-0412
BRON ARD (305) 764-7717
F" (305) 665-7456
700 So l FHEAST THIRD A\ F \E F
S t ITE 400
FT. LAl DERDALE, FLORIDA 33316-1102
TFLEPHO\ES B RO\1 ARD (305) 764-7717
DAM (305) 667-0412
FAX (305) 764-7835
Independent Auditor's Report on Schedule of
Federal Financial Assistance
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key
Biscayne, Florida as of and for the year ended September 30, 1993, and have issued
our report thereon dated December 2, 1993. These general purpose financial
statements are the responsibility of the Village of Key Biscayne, Florida's
management. Our responsibility is to express an opinion of these general purpose
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards issued by the Comptroller 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 oui audit provides a reasonable basis
for our opinion.
Our audit was made for the purpose of forming an opinion on the general purpose
financial statements of The Village of Key Biscayne, Florida taken as a whole.
The accompanying Schedule of Federal Financial Assistance is presented for purposes
of additional analysis and is not a required part of the general purpose financial
statements. The information in that schedule has been subjected to the auditing
procedures applied in the audit of the general purpose financial statements and,
in our opinion, is fairly presented in all material respects in relation to the
general purpose financial statements taken as a whole.
/?., ~- , 6 z ,
Coral Gables, Florida
December 2, 1993
-49-
X11 AIHFRiPr 51AI AIil 1VIFR\410AgI Ab,o(mFS IV( \MHOFFKFS1APRIM IMI (IIIFS IHROIC,HOI I [HE\~ORID
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
FISCAL YEAR ENDED SEPTEMBER 30, 1993
Federal Grantor/
Pass-through Grantor/Program Title
Federal
CFDA
Number Expenditure
Federal Emergency
Management Agency
Department of Commerce, Economic
83.516 $1,165,864
Development Grant 11.305 50,000
Total Federal Assistance Expended
State Program
S1.215.864
Hurricane Andrew Recovery and
Rebuilding Trust Fund
(94-EO-2F-11-23-02-025-026)N/A S 191.725
RACHLIN & COHEN
CERTIFIED PUBLIC Accou\TA\TS & COW LTAITS
4 PART ER%HIP OF PROF ESSIO\AL Assoc Ii I10\S
1320 SOL TH DIME HFGHR AI
PE\IHOLSL
CORAL GABLLS, FLORIDA 33146-2964
TELEPHONES DADE (305) 667-0412
BRM ARD (305) 764-7717
FAa (305)665-7456
700 Sot THEAS I THIRD Al F m f
SL ITF 400
F! LAI DERDALE, FLORIDA 33316-1102
TELEPHO\FS BROPI ARD (305) 764-7717
DADE (305) 667-0412
Fk% (305) 764-7835
Independent Auditor's Report on the Internal Control Structure
Used in Administering Federal Finance Assistance Programs
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key
Biscayne, Florida as of and for the year ended September 30, 1993, and have issued
our report thereon dated December 2, 1993. We have also audited the compliance
of the Village of Key Biscayne, with requirements applicable to major federal
financial assistance programs and have issued our report thereon dated December
2, 1993.
We conducted our audits in accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller Central of the United
States; and Office of Management and Budget Circular A-128, Audits of State and
Local Governments. Those standards and OMB Circular A-128 require that we plan
and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement and about whether
the Village of Key Biscayne, Florida complied with laws and regulations,
noncompliance with which would be material to a major federal financial assistance
program.
In planning and performing our audit for the year ended September 30, 1993, we
considered the internal control structure of the Village of Key Biscayne, Florida
in order to determine our auditing procedures for the purpose of expressing our
opinion on the general purpose financial statements of the Village of Key Biscayne,
Florida and on the compliance of the Village of Key Biscayne, Florida with
requirements applicable to major programs and to report on the internal control
structure in accordance with OMB Circular A-128. This report addresses our
consideration of internal control structure policies and procedures relevant to
compliance with requirements applicable to federal financial assistance programs.
We have addressed internal control structure policies and procedures relevant to
our audit of the general purpose financial statements in a separate report dated
December 2, 1993.
The management of the Village of Key Biscayne, Florida is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments made by management are required to assess
the expected benefits and related costs of internal control structure policies
and procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition, that transactions are executed
in accordance with management's authorization and recorded properly to permit the
preparation of general purpose financial statements in accordance with generally
accepted accounting principles, and that federal financial assistance programs
are managed in compliance with applicable laws and regulations. Because of inherent
limitations in any internal control structure, errors, irregularities, or instances
-51-
~IIAIBF RnF5lVNII11VIFRV1110\4I~S(X IVF S, IV AIIIII OF I`KFSIAPRIA(I PA! (I I IF S 1HR01(,HOt I IM ~i ORID
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
of non compliance may nevertheless occur and not be detected. Also, projection
of any evaluation of the structure to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of policies and procedures may deteriorate.
For the purpose of this report, we have classified the significant internal control
structure policies and procedures used in administering federal financial assistance
programs in the following categories:
Accounting Applications
• Cash
• Revenues and Receivable
• Accounts Payable and Related Expenditures
• General Ledger
• Payroll
General Requirements
• Political Activity
• Davis-Bacon Act
• Civil Rights
• Cash Management
• Drug-Fee Workplace
• Federal Financial Reports
Allowable Costs/Cost Principles
Specific Requirements
• Types of Services
• Eligibility
• Reporting
• Claims for Reimbursement
For all of the internal control structure categories listed above, we obtained
an understanding of the design of relevant policies and procedures and determined
whether they have been place in operation, and we assessed control risk.
During the year ended September 30, 1993, the Village of Key Biscayne, Florida
expended one hundred percent of its total federal financial assistance under major
federal financial assistance programs.
We performed tests of controls, as required by OMB Circular A-128, to evaluate
the effectiveness of the design and operation of internal control structure policies
and procedures that we considered relevant to preventing or detecting material
noncompliance with specific requirements, general requirements, and requirements
governing claims for advances and reimbursements and amounts claimed or used for
matching that are applicable to each of the Village of Key Biscayne, Florida's
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Three
major federal financial assistance programs, which are identified in the accompanying
Schedule of Federal Financial Assistance. Our procedures were less in scope than
would be necessary to render an opinion on these internal control structure policies
and procedures. Accordingly, we do not express such an opinion.
We noted certain matters involving the internal control structure and its operation
that we consider to be reportable conditions under standards established by the
American Institute of Certified Public Accountants. Reportable conditions involve
matters coming to our attention relating to significant deficiencies in the design
or operation of the internal control structure that, in our ,judgment, could adversely
affect the Village of Key Biscayne, Florida's ability to administer federal financial
assistance programs in accordance with applicable laws and regulations.
Accounting Software
Due to the fundamental differences between governmental fund and non-
governmental accounting, we recommend that governmental software be utilized
to process, record and summarize the transactions of the individual funds.
Due to the expansion of the Village, the current accounting software will
not properly serve the needs of the Village. At your request, we are
available to recommend a governmental software package.
A material weakness is a reportable condition in which the design or operation
of one or more of the internal control structure elements does not reduce to a
relatively low level the risk that noncompliance with laws and regulations that
would be material to a federal financial assistance program may occur and not be
detected within a timely period by employees in the normal course of performing
their assigned functions.
Our consideration of the internal control structure policies and procedures used
in administering federal financial assistance would not necessarily disclose all
matters in the internal control structure that might be reportable conditions and,
accordingly, would not necessarily disclose all reportable conditions that are
also considered to be material weaknesses as defined above. However, we believe
that the reportable condition described above is not a material weaknesses.
This report is intended for the information of management, the Mayor and Village
Council. However, this report is a matter of public record and its distribution
is not limited.
Coral Gables, Florida
December 2, 1993
RACHLIN & COHEN
1320 Sot TH D mF Hl(,HN AI
P E\FHOLSF
CORAL GABLEs, FLORIDA 33146-2964
TELEPHONES DADF (305) 667-0412
BROtiARD (305) 764-7717
FAa (305) 665-7456
CERTIFIED Pt BLIC Accot \T4\TS & CO\SL LTV TS
A PARFvLRSHIV OF PROIEeSIOAAL ASSO, IATIOvS
Independent Auditor's Report on
Compliance with General Requirements
700 SOt IHFASi THIRD A\ F\1 F
StItF400
FI LMDERDALF F LORIDA33316-1102
FFLFPHO\Fs: BRO\\ARD (305) 764-7717
DARE (305) 667-0412
FA-v (305) 764-7835
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key
Biscayne as of and for the year ended September 30, 1993, and have issued our report
thereon dated December 2, 1993.
We have applied procedures to test the Village of Key Biscayne Florida's compliance
with the following requirements applicable to its federal financial assistance
programs, which are identified in the Schedule of Federal Financial Assistance,
for the year ended September 30, 1993. The general requirements tested were
Political Activity, Davis-Bacon Act, Civil Rights, Cash Management, Federal
Financial Reports, Allowable Costs/Cost Principles and Drug-Free Workplace.
Our procedures were limited to the applicable procedures described in the Office
of Management and Budget's Compliance Supplement for Single Audits of State and
Local Government. Our procedures were substantially less in scope than an audit,
the objective of which is the expression of an opinion on The Village of Key
Biscayne, Florida's compliance with the requirements listed in the preceding
paragraph. Accordingly, we do not express such an opinion.
With respect to the items tested, the results of those procedures disclosed no
material instances of noncompliance with the requirements listed in the second
paragraph of this report. With respect to items not tested, nothing came to our
attention that caused us to believe that the Village of Key Biscayne, Florida had
not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Mayor and Village
Council. However, this report is a matter of public record and its distribution
is not limited.
4L,c,~i,(u,. . -oz,
Coral Gables, Florida
December 2, 1993
-54-
\1r vlRr u of SI \1\11 1 M i Rv mmAI AwX 1\11S ICI w m OFI 1( 1b Jv PRly( I'm (I I IF, I [mot (,HUI I i m A\ oRI D
RACHLIN & COHEN
CERTIFIED PUBLIC Acc oL \TA\TS & CO\SULTA\TS
A PARTNERSHIP OF PROFESSIONAL ASSOC IATIONS
1320 S OL TH DIXIE H IGHU Al 700 SO L THEASi THIRD A\ EVl F
P EvTHOESE SL IFE400
CORAL G ABLES, FLORIDA 33146-2964 F -T LAI DERDALE, FI ORIDA 33316-1102
TELEPHO\ES DADE (305) 667-0412 T FLEPHO\ES B RO\N ARD (305) 764-7717
BROI ARD (305) 764-7717 DADE (305) 667-0412
FAA (305) 665-7456 Independent Auditor's Report on Compliance With FA.\ (305) 764-7835
Specific Requirements Applicable to Major
Federal Financial Assistance Program
To the Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key
Biscayne, Florida, as of and for the year ended September 30, 1993, and have issued
our report thereon dated December 2, 1993.
We have also audited the Village of Key Biscayne, Florida's compliance with the
requirements governing types of services allowed or unallowed, eligibility, reporting
and special tests and provisions and claims for reimbursement that are applicable
to each of its major federal financial assistance programs, which are identified
in the accompanying Schedule of Federal Financial Assistance, for the year ended
September 30, 1993. The management of the Village of Key Biscayne, Florida, is
responsible for the Village of Key Biscayne, Florida's compliance with those
requirements. Our responsibility is to express an opinion on compliance with those
requirements based on our audit.
We conducted our audit of compliance with those requirements in accordance with
generally accepted auditing standards; Government Auditing Standards, issued by
the Comptroller General of the United States; and OMB Circular A-128, Audits of
State and Local Governments. Those standards and OMB Circular A-128 require that
we plan and perform the audit to obtain reasonable assurance about whether material
noncompliance with the requirements referred to above occurred. An audit includes
examining, on a test basis, evidence about the Village of Key Biscayne, Florida's
compliance with those requirements. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the Village of Key Biscayne, Florida, complied, in all material
respects, with the requirements governing types of services allowed or unallowed,
eligibility, reporting and special tests and provisions and claims for reimbursement
that are applicable to each of its major federal financial assistance programs
for the year ended September 30, 1993.
This report is intended for the information of management, the Mayor and Village
Council. However, this report is a matter of public record and its distribution
is not limited.
Coral Gables, Florida
December 2, 1993
-55-
%1EVBERUFSt v1v1111vIFRvgIi0vV ANyxIgIE5,1v( \Mli0111(FSIvPRIM IPAIC111FNTHROI(,IiolI IHF\~ORID