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Home My Public Portal AboutCAFR 1995.pdfVILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1995 Prepared by: THE FINANCE DEPARTMENT ^ VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 1995 TABLE OF CONTENTS 1. INTRODUCTORY SECTION PAGE Letter of Transmittal i Certificate of Achievement for Excellence in Financial Reporting viii Village Officials ix Village Organization Chart x II. FINANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW): 1 Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types 3 Statement of Revenues and Expenditures - Budget and Actual - General Fund 4 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Enterprise Funds 5 Combined Statement of Cash Flows - Enterprise Funds 6 Notes to Financial Statements 7 COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP - STATEMENTS AND SCHEDULES GENERAL FUND: Balance Sheets 20 Schedule of Revenues and Expenditures - Budget and Actual 21 ENTERPRISE FUNDS: Combining Balance Sheet 23 Combining Statement of Revenue, Expenses and Changes in Retained Earnings 24 Combining Statement of Cash Flows 25 AGENCY FUNDS: Combining Balance Sheet Statement of Changes in Assets and Liabilities - Deferred Compensation Plan Statement of Changes in Assets and Liabilities - Defined Contribution Plan 26 27 28 VILLAGE OF KEY BISCAYNE, FLORIDA TABLE OF CONTENTS PAGE II.FINANCIAL SECTION ACCOUNT GROUPS: GENERAL FIXED ASSETS ACCOUNT GROUP: Schedule of General Fixed Assets By Source 29 Schedule of General Fixed Assets By Function and Activity 30 Schedule of Changes in General Fixed Assets By Function and Activity 31 GENERAL LONG-TERM DEBT ACCOUNT GROUP: Statement of General Long-Term Debt 32 III.STATISTICAL SECTION General Government Expenditures by Function 33 General Government Revenues By Source 34 Property Tax Levies and Collection 35 Assessed Actual Value of Taxable Property 36 Property Value, Construction and Bank Deposits 37 Utility Tax Revenue By Source; Franchise Fee Revenue by Source 38 Property Tax Rates Direct and Overlapping Governments 39 Ratio of Net Bonded Debt to Assessed Value and Per Capita 40 Ratio of Annual Debt Service Expenditures for Net Bonded Debt to General Governmental Expenditures 41 Principal Taxpayers 42 Demographic Statistics 43 Miscellaneous Statistical Data 44 IV.SUPPLEMENTARY AUDITOR'S REPORTS SECTION Report of Independent Certified Public Accountants on Internal Control Structure Based on an Audit Performed in Accordance With Government Auditing Standards 45 Report of Independent Certified Public Accountants on Compliance with Laws and Regulations Based on an Audit Performed in Accordance With Government Auditing Standards 47 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 48 Report of Independent Certified Public Accountants on Schedule of Federal and State Financial Assistance 50 VILLAGE OF KEY BISCAYNE, FLORIDA TABLE OF CONTENTS IV. SUPPLEMENTARY AUDITOR'S REPORTS SECTION PAGE Schedule of Federal and State Financial Assistance 51 Report of Independent Certified Public Accountants on Internal Control Structure Used in Administering Federal Financial Assistance Programs Report of Independent Certified Public Accountants on Compliance with General Requirements Applicable to Federal Financial Assistance Programs 52 55 Report of Independent Certified Public Accountants on Compliance with Specific Requirements Applicable to Major Financial Assistance Programs 56 Report of Independent Certified Public Accountants on Compliance with Specific Requirements Applicable to NonMajor Federal Financial Assistance Program Transactions 57 Recommendation to Improve the Village's Administrative and Accounting Controls 58 INTRODUCTORY SECTION Village Council John F. Festa, Mayor John Waid, Vice Mayor Raul Lorene Hugh T. O'Reilly Michele Padovan Betty Sime Raymond P Sullivan January 26, 1996 Village Manager C. Samuel Kissinger Honorable Mayor, Members of the Village Council and the Citizens of the Village of Key Biscayne: The Comprehensive Annual Financial Report of the Village of Key Biscayne for the fiscal year ended September 30, 1995 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 is accurate in all material respects and is reported in a manner designed to fairly present 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 (CAFR) 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 report of the independent certified public accountants on the general purpose financial statements and the required notes 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 the Internal Control Structure, 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 Clerk and Village Attorney. As Chief Administrative Officer, the Village Manager is responsible for enforcing laws and ordinances, and appointing and supervising the department heads of the Village. i 85 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5514 • Fax: (305) 365-8936 MicclnW C ATFMFUT ^Tn uvn%nnF • cARF ni TAI ITV cnMMI INITY ENVIRONMENT FOR ALL ISIANDERS THROUGH RESPONSIBLE GOVERNMENT" VILLAGE OF KEY BISCAYNE 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 is an incorporated municipality of approximately 1.25 square miles. It is located on Key Biscayne and is bordered to the north by Crandon Park, a 960 acre park administered by Dade County, and to the south by Bill Baggs Cape Florida State Recreation Area, a park of approximately 600 acres. Dislocation event and its impact On Monday, August 24, 1992, Hurricane Andrew hit Key Biscayne making an impact that will be felt for decades. A 7 foot storm surge caused flooding of homes, schools, businesses, hotels, streets, and landscaping. Wind did additional damage to structures and vegetation. As of September 30, 1995, the close of the fiscal year which is the subject of this report, virtually all of the work authorized by FEMA has been completed. However, while most of the applicable funding has been received, only some of the claims have been finalized. After the claims have been finalized and outstanding balances received, a three year period commences during which all records must be maintained and available for audit. For this reason, an appropriate reserve for grant audits has been established to be maintained until the audit period is concluded. Maior Activities During the initial year of incorporation, most services were provided by Dade County. The Village Police Department was activated on March 1, 1993, and the Village Fire Rescue Department was activated on October 1, 1993. On January 1, 1995, the Village took over the responsibility of providing solid waste and recycling collection services to single family residences for $199.00 annually compared to the $399.00 previously charged by Metro-Dade County Department of Solid Waste Management Debt Administration The Village of Key Biscayne has two outstanding obligations: 1) a 10 year $9,200,000 Land Acquisition Revenue Bond which was issued on December 20, 1993 at 4.36% from Northern Trust Bank to purchase the land for the Village Green. The balance on September 30, 1995 was $8,445,000. 2) A $7,200,000 Bond Anticipation Note for two years at 4.89% from the Key Biscayne Bank and First Union National Bank for stormwater infrastructure. Permanent financing will be obtained when construction is completed. ii MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT" VILLAGE OF KEY BISCAYNE 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 department 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 the controls 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 Governmental Accounting Standards Board Statement Number 14, all funds and account groups for which the Village is financially accountable. The Village currently provides services associated with the following departments: Building, Zoning and Planning Department, Emergency Services Department, Recreation Department, Public Works Department, Finance and Administrative Services Department, Office of the Village Clerk and Office of the Village Manager. Reporting 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. The Auditor General, State of Florida 4. The Charter of the Village of Key Biscayne 5. The Government Finance Officers Association of the United States and Canada iii MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT" VILLAGE OF KEY BISCAYNE General Government Functions The General Fund is the general operating fund of the Village. General tax revenues and other receipts that are not allocated 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 accounted for through other funds are accounted for in the General Fund. The amount of General Fund revenues and expenditures from various sources are shown in the following schedule: REVENUES Sources FY 1995 FY 1994 Utility Taxes $ 1,257,179 $ 1,268,428 Franchise Fees 652,844 668,020 Property Taxes 6,820,807 6,640,045 Intergovernmental 788,062 732,196 Licenses and Permits 351,152 246,533 Charges for Services 73,268 97,664 Impact Fees 250,000 382,713 Donations 8,000 Other 65,200 18,000 Interest 369,540 288,978 Hurricane Loss Grant Revenue 190,688 240,000 Grants 77,930 25,305 Total Revenue $10.904.670 10,607,882 EXPENDITURES (Budgetary Basis) Function FY 1995 FY 1994 General Government $ 615,480 $ 620,784 Public Works 579,072 609,932 Economic Development -0-126,460 Building, Zoning & Planning 467,621 403,097 Parks and Recreation 213,704 272,158 Public Safety 4,290,678 3,918,351 Debt Service 2,238,101 255,106 Non-Departmental 505,700 227,105 Capital Outlay 1,675,721 12,758,815* Total Expenditures 10,586,077 19.191.808 * Includes purchase of land for the Village Green, $9,238,318 iv MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT" VILLAGE OF KEY BISCAYNE Capital Proiects Fund During Fiscal Year 1995, the Village Council established a Capital Improvement Fund for various infrastructure projects of a multi-year character. Funding for these projects will come from annual appropriations in the General Fund Budget. 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. Major Proiects for Fiscal Year 1995 and 1996 For the 1994-1995 Fiscal Year, The Village Council established a budget for the Stormwater Management Utility Fund and the Solid Waste Fund. The Village had the engineering firm of Williams, Hatfield and Stoner design and prepare plans for the Stormwater Management System, which has two segments. The first segment, estimated to cost $2,250,000, servicing an area between Crandon Boulevard and The Atlantic Ocean was begun in June 1995 and scheduled for completion in early 1996. The second segment, estimated to cost $7,200,000 covers the area from Crandon Boulevard and West to Biscayne Bay. Fiduciary Funds Fiduciary Funds are Trust and Agency Funds established for the purpose of accounting for assets held in trustee capacity or as an agent for individuals, private organizations and other government. As of September 30, 1995, the following were recorded as Fiduciary Funds: Trust and Agency Funds A section 401(a) money purchase plan is offered by the Village for its employees and was created in accordance with Internal Revenue Code Section 401. The plan, managed by independent plan administrators, permits employees to defer a portion of their salary until future years. The 401 (a) fund had $1,081,220 in investments for the fiscal year ended September 30, 1995. In addition to the 401(a) plan, employees may contribute to a section 457 plan. Employee investments in the section 457 plan as of September 30, 1995 were $312,371. V MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT" VILLAGE OF KEY BISCAYNE 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, 1995, the general fixed assets acquired amount to$12,896,219. Major additions for FY 1994-95 are: land for the Village Green park, public safety equipment and vehicles and the public safety complex. Cash Management The Village had several cash management vehicles in this fiscal year and an investment account or money market account in the Key Biscayne Bank under an agreement which provided for overnight investments of both the investment account and the operating account. The Village also has an investment with the Florida Local Government Trust Fund administered by the State Board of Administration, which as of September 30, 1995 had a balance of $101,446 in the General Fund and $14,779 for the Law Enforcement Trust Fund. The Village purchased a one-year 7.25%, $1,000,000 Treasury Note in January 1995. Risk Management The Village is insured with the Florida Municipal Insurance Trust for liability and property coverage and with the Florida Municipal Self Insurance Fund for Workers Compensation coverage. The liability limit under the policy is $5,000,000. Employee Life/Insurance is with North American Life Assurance. Long-Term Disability for all employees and state mandated additional coverages for police officers and firemen is with the Hartford Insurance Company. Independent Audit Provisions in the Florida Statues and the Village Charter require an annual financial 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 reports have been included in this CAFR. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States an Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village for its Comprehensive vi MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT" VILLAGE OF KEY BISCAYNE Annual Financial Report for the Fiscal Year ended September 30, 1994. The Government Finance Officers Associate of the United States of Canada (GFOA) also presented an award for Distinguished Budget Presentation to the Village of Key Biscayne for its annual budget for the fiscal year beginning October 1, 1994. In order to receive these awards, a governmental unit must publish an easily readable and efficiently organized CAFR and a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. The awards are valid for a period of one year only. We believe our current CAFR and budget continue to conform to program requirements and we have submitted them to the GFOA to determine theirs eligibility for Fiscal Year ended September 30, 1995. ACKNOWLEDGMENTS The preparation of this report could have not 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 Rachlin, Cohen & Holz for their professional approach and high standards in conduct of their independent audit of the Village's financial records and transactions. Respecfillly submitted, C. Samuel Ki-inger Village Manager ack Neustadt Director of Finance and Administrative Services C SK/JN/yg Vii MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT" Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Key Biscayne, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1994 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 Y~~ Z . Executive Director viii VILLAGE OF KEY BISCAYNE, FLORIDA COUNCIL - MANAGER FORM OF GOVERNMENT VILLAGE COUNCIL John F. Festa, Mayor Michele Padovan, Councilman Betty Q. Sime, Vice Mayor Raul Llorente, Councilman Raymond P. Sullivan, Councilman Hugh T. O'Reilly, Councilman John Waid, 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 RA CHLIN COHEN & HOLTZ VILLAGE OF KEY BISCAYNE, FLORIDA ORGANIZATION CHART VILLAGE CLERK I DEPARTMENT OF BUILDING, ZONING AND PLANNING _-1 BUILDING ZONING PLANNING CODE ASSISTANCE SPECIAL MASTERS I DEPARTMENT OF EMERGENCY SERVICES FIRE RESCUE POLICE VOTER I I i VILLAGE I LOCAL COUNCIL N PLANNING AGENCY VILLAGE blANAGER DEPARTMENT OF RECREATION SPECIAL EVENTS SPORTS ATHLETICS PROGRAMS/ TOURS ASSISTANT TO MANAGER DEPARTMENT OF PUBLIC WORKS VILLAGE ENGINEER CONTRACT SUPERVISOR STORMWATER MANAGEMENT REFUSE COLLECTION 6 RECYCLING MAINTENANCE X I VILLAGE ATTORNEY DEPARTMENT OF FINANCE AND ADMIN. SERVICES FINANCE/ ACCOUNTING PERSONNEL BENEFITS FINANCIAL SECTION C ERTIFIED PUBLIC ACCOUNTANTS & CONSUL FAN FS A Partner,hip Including Prote„tonal A,souation, REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Village Council Village of Key Biscayne, Florida We have audited the accompanying general purpose financial statements of the Village of Key Biscayne, Florida (the "Village") as of and for the year ended September 30, 1995, as listed in the table of contents. These general purpose fmancial 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 general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Village of Key Biscayne, Florida as of September 30, 1995 and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 25, 1996 on our consideration of the Village's internal control structure and a report dated January 25, 1996 on its compliance with laws and regulations. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining and individual fund and account group statements and schedules as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. 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 stated 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 January 25, 1996 One Southeast Third Ak emie, Tenth Floor Miami, Florida 33131 • Dade (305) 377-4228 • Faa ()05) 377-8331 700 Southeast Third Am mue, Third Floor, Ft Lauderdale, Florida 31316 - Brmvard (954) 525-1040 • Fak (954) 525-2004 \Irmhri of nnnnl IntClnd honal I it,~ In, Rah olhu~^1 p1 pAipal Uhc,thinu"huut the of I,I Ue w" i nl the An ei i, i i I°t,h'ul ° of l cihh,d I'nhii~ A.u~unlai~t, I)n talitot tiI ( Pra,tiu~ tiertine anti the I)i, itr ( Iml,ara~ ~'i ~ a6 ~uh~rn GENERAL PURPOSES FINANCIAL STATEMENTS (COMBINED STATEMENTS -OVERVIEW) VILLAGE OF KEY BI SCAYNE, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) Governmental Fund Types Proprietary Fund Type Fiduciary Fund Type Account Groups Totals (Memorandum Only) ASSETS AND OTHER DEBITS General Capital Projects Enterprise Agency General Fixed Assets General Long-Term Debt 1995 1994 Cash and cash equivalents $1,876,035 $1,327,733 $ 3,811,881 $ -$$7,015,649 $ 5,727,073 Investments 1,000,000 5,104,000 1,393,591 7,497,591 671,487 Loan receivable --60,279 60,279 10,600 Due from other governments 82,657 -82,657 82,658 Due from other funds 171,233 -171,233 150,000 Accounts receivable 59,853 44,649 104,502 96,020 Interest receivable -158,206 158,206 - General fixed assets 12,896,219 12,896,219 11,484,601 Construction to progress 1,263,487 1,263,487 333,754 Amount to be provided for retirement of general long-term debt -8,774,169 8,774,169 10,426,111 Total assets and other debits $3,189,778 $1,327,733 $10,382,223 $1,453,870 $12,896,219 $ 8,774,169 $38,023,992 $28,982,304 LIABILITIES, EQUITY AND OTHER CREDITS Liabilities: Accounts payable and accrued liabilities $341,645 $47,373 $621,582 $$$$1,010,600 $ 445,617 Due to other funds -14,029 157,204 171,233 150,000 Deposits and performance bonds 25,330 --25,330 - Bonds payable -8,445,000 8,445,000 9,200,000 Deferred FEMA revenue 106,309 -106,309 106,309 Deferred rent 13,746 13,746 4,650 Deferred benefits payable -1,453,870 1,453,870 682,087 Note payable - FEMA ---1,000,000 Bond anticipation notes 7,200,000 -7,200,000 - Compensated absences payable -329,169 329,169 226,111 Interest payable ----60,000 Total liabilities 487,030 61,402 7,978,786 1,453,870 8,774,169 18,755,257 11,874,774 Equity and other credits- Investment in general fixed assets -12,896,219 12,896,219 11,484,601 Retained earnings -2,403,437 -2,403,437 183,754 Fund balance. Reserved 1,418,507 -1,418,507 3,262,027 Unreserved- Designated 530,368 530,368 2,096,967 Undesignated 753,873 1,266,331 -2,020,204 80,181 Total equity and other credits 2,702,748 1,266,331 2,403,437 12,896,219 19,268,735 17,107,530 Total liabilities, equity and other credits $3,189,778 $1,327,733 $10,382,223 $1,453,870 $12,896,219 $8,774,169 $38,023,992 $28,982,304 See notes to financial statements. -2- VILLAGE OF KEY BISCAYNE, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Capital Totals (Memorandum Only) General Fund Projects Fund 1995 1994 Revenues: Property taxes $ 6,820,807 $$ 6,820,807 $ 6,640,045 Utility taxes 1,257,179 1,257,179 1,268,428 Franchise fees 652,844 652,844 668,020 Intergovernmental 788,062 788,062 732,196 Licenses and permits 351,152 351,152 246,533 Charges for services 73,268 73,268 97,664 Other 73,200 73,200 18,000 Interest 369,540 369,540 288,978 Impact fees 250,000 250,000 382,713 Grants 268,618 268,618 265,305 Total revenues 10,904,670 _ 10,904,670 10,607,882 Expenditures: Current: General government 615,480 615,480 620,784 Public works 573,844 573,844 609,932 Economic development 126,460 Building, planning and zoning 467,621 467,621 403,097 Parks and recreation 211,159 211,159 272,158 Public safety 4,294,606 4,294,606 3,918,351 Non-departmental 512,331 512,331 227,105 Capital outlay 1,690,772 61,402 1,752,174 12,758,815 Debt Service: Principal 1,755,000 1,755,000 Interest 483,101 483,101 255,106 Total expenditures 10,603,914 61,402 10,665,316 19,191,808 Excess (deficiency) of revenues over expenditures 300,756 (61.40 2)239,354 (8,583,926) Other financing sources (uses): Transfers in -1,327,733 1,327,733 Transfers out (3,037,183)(3,037,183)(325,671) Bond proceeds -9.200,000 Total other financing sources (uses)(3,037,183)1,327,733 (1,709,450)8,874,329 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (2,736,427)1,266,331 (1,470,096)290,403 Fund balance, beginning 5,439,175 5,439,175 5,148,772 Fund balance, ending $ 2,702,748 $1,266,331 $ 3,969,079 $ 5,439,175 See notes to financial statements. -3- VILLAGE OF KEY BISCAYNE, FLORIDA STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30, 1995 Budget Budgetary Basis Actual Variance Favorable (Unfavorable) Revenues: Property taxes $ 6,786,441 $ 6,820,807 $ 34,366 Utility taxes 1,183,000 1,257,179 74,179 Franchise fees 625,000 652,844 27,844 Intergovernmental 651,000 788,062 137,062 Licenses and permits 251,000 351,152 100,152 Charges for services 57,000 73,268 16,268 Other 998 73,200 72,202 Interest 100,000 369,540 269,540 Impact Fees -250,000 250,000 Grants -268,618 268,618 Total revenues 9,654,439 10,904,670 1,250,231 Expenditures: Current: General government 681,111 615,480 65,631 Public works 470,000 579,072 (109,072) Building, planning and zoning 466,878 467,621 (743) Parks and recreation 223,207 213,704 9,503 Public safety 4,425,154 4,290,678 134,476 Non-departmental 534,500 505,700 28,800 Capital outlay 1,657,128 1,675,721 (18,593) Debt service: Principal 755,000 1,755,000 (1,000,000) Interest 441,461 483,101 (41,640) Total expenditures 9,654,439 10,586,077 (931,638) Excess of revenues over expenditures 318,593 318,593 Other financing uses: Transfers out -(3,037,183)(3,037,183) Total other financing uses -(3,037,183)(3,037,183) Deficiency of revenues over expenditures and other financing uses $ -$(2,718,590)$(2,718,590) See notes to financial statements. -4- VILLAGE OF KEY BISCAYNE, FLORIDA COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) 1995 1994 Operating revenue $617,999 $ Operating expenses: General and administrative costs 165,463 Operating income 452,536 Non-operating revenue (expense): Interest income 221,023 Interest expense (163,326) Total non-operating revenue (expense)57,697 Income before transfers 510,233 - Transfers in 1,709,450 325.671 Net income 2,219,683 325,671 Retained earnings (deficit), beginning 183,754 141 917) Retained earnings, ending $2.403,437 $ 183,754 See notes to financial statements. -5- VILLAGE OF KEY BISCAYNE, FLORIDA COMBINED STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) 1995 1994 Cash flows from operating activities: Operating income $ 452,536 $ - Adjustments to reconcile operating income to net cash provided by operating activities: Increase in: Accounts receivable (44,649)- Interest receivable (158,206)- Increase (decrease) in: Accounts payable 621,582 (26,507) Due to other funds 7,204 34,590 Total adjustments 425,931 8,083 Net cash provided by operating activities 878,467 8,083 Cash flows from non-capital financing activities: Transfers in 1,709,450 325,671 Net cash provided by non-capital financing activities 1,709,450 325,671 Cash flows from capital and related financial activities: Construction in progress (929,733)(333,754) Proceeds from bond anticipation notes 7,200,000 - Interest paid (163,326)- Net cash provided (used) by capital and related financing activities 6,106,941 33( 3,754) Cash flows from investing activities: Purchase of investments (5,104,000) Interest received 221,023 Net cash used by investing activities (4,882,977) Net increase in cash 3,811,881 Cash, beginning - Cash, ending $ 3,811,881 $ See notes to financial statements. -6- NOTES TO FINANCIAL STATEMENTS VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1995 NOTE 1. 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), which is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. 1. Reporting Entity The Village of Key Biscayne (the "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. In addition to the general government function, the Village provides its residents with public works, public safety (police and fire), parks and recreation, and building, zoning and planning 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. The basic criteria for determining whether another governmental organization should be included in the Village's reporting entity for general purpose financial statements is financial accountability. Financial accountability includes (1) the appointment of a voting majority of the organization's governing body, (2) the ability of the Village to impose its will on the organization,or (3) if there is a financial benefit/burden relationship. In addition, an organization which is fiscally dependent on the Village should be included in its reporting entity. At September 30, 1995, the Village did not have any organizations meeting the above stated criteria. Therefore, the general purpose financial statements include all the funds and accounts groups for which the Village is financially accountable. 2. Basis of Presentation 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. 17 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The funds and account groups are classified as follows: GOVERNMENTAL FUND TYPES 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 and franchise fees. Expenditures are incurred to provide public safety, general government, recreation, building, planning and zoning and public works services. The CAPITAL PROJECTS FUND accounts for the acquisition or construction of major capital projects not being financed by proprietary funds. PROPRIETARY FUND TYPE The ENTERPRISE FUNDS are 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 consists of a stormwater utility system and a solid waste fund. FIDUCIARY FUND TYPES The AGENCY FUNDS are used to account for assets that the Village maintains on behalf of others as their agent and consists of a deferred compensation plan and a defined contribution plan. ACCOUNT GROUPS ACCOUNT GROUPS are used to establish accounting control and accountability over the Village's general fixed assets and long-term obligations. Accordingly, the Village maintains a general fixed asset account group and a general long-term debt account group. 3. Measurement Focus GOVERNMENTAL FUND TYPES Governmental funds are used to account for the Village's general government activities. Governmental funds use the flow of current financial resources measurement focus. Only current assets and current liabilities are included on its balance sheet with fund balance representing available spendable resources. VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3. Financial Statement Measurement Focus PROPRIETARY FUND TYPE Proprietary funds are accounted for on the flow of economic resources measurement focus. Financial activity is reported in essentially the same manner as in commercial enterprises where net income and capital maintenance are measured. All assets and liabilities (whether current or noncurrent) are included in the financial statements. Major outlays for capital assets and improvements are capitalized. FIDUCIARY FUND TYPE The agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. ACCOUNT GROUPS The general fixed assets account group is used to account for fixed assets not accounted for in proprietary funds. The general long-term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary funds. 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 FUND TYPES 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. Measurable means the amount of the transaction can be determined. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Village considers all revenues available if they are collected within 60 days after year end. Property taxes, franchise fees, utility taxes, intergovernmental revenues and interest are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the Village and are recognized as revenue at that time. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. a VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMAlARY OF SIGNIFICANT ACCOUNTING POLICIES 4. Basis of Accounting Expenditures are generally recognized when the related liability is incurred. Exceptions to this rule are: 1) long-term portion of accumulated compensated absences is not recognized in the general fund until the liability is expected to be liquidated from available spendable resources; and 2) unmatured interest on general long-term debt which is recorded as an expenditure on its due date. PROPRIETARY FUND TYPE The enterprise funds are accounted for using the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred. The Village has elected to follow all Financial Accounting Standards Board (FASB) Statements issued on or before November 30, 1989 except those that conflict with or are contradicted by Governmental Accounting Standards Board (GASB) pronouncements. 5. Budgetary Information An annual appropriated budget is prepared for the general fund. (a) The Village Manager submits to the Council a proposed operating budget for the ensuing fiscal year. The operating budget includes proposed revenues and expenditures with an explanation regarding each expenditure that is not of a routine nature. (b) Public hearings are conducted to obtain taxpayer comments. (c) Prior to October 1, the budget is legally enacted through passage of an ordinance. (d) The Village Council, by motion, may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated. However, there were no supplemental appropriations in this fiscal year. (e) Formal budgetary integration is employed as a management control device during the year for the general fund. (f) The budget for the general fund is adopted on a basis consistent with generally accepted accounting principles (GAAP). VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 5. Budgetary Information (g)The Village Manager is authorized to transfer part or all of an encumbered 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 year end. Encumbered amounts are not 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. 6. Encumbrances Encumbrances are recorded at the time a purchase order or other commitment is entered into. Encumbrances outstanding at year-end represent the estimated amount of expenditures to result if unperformed purchase orders and other commitments at year-end are completed. Appropriations lapse at year-end; however, the Village generally intends to honor purchase order and other commitments in process. As a result, encumbrances outstanding at year-end are reported as reservations of fund balance since they do not constitute expenditures or liabilities. 7. Deposits and Investments The Village's cash and cash equivalents are considered to be cash on hand and short-term investments with original maturities of three months or less from the date of acquisition. Village administration is authorized to invest in those instruments authorized by the Florida Statutes. Investments are stated at cost except those of the deferred compensation plan and defined contribution plan which are stated at market. 8. General Fixed Assets 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 and capital projects funds 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) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 9. Compensated Absences It is the Village's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Only those amounts estimated to be liquidated with expendable available financial resources are accrued at year-end in the general fund with the long-term portion of the accumulated unpaid vacation and sick leave in the general long-term debt account group. 10. Long-Term Obligations The Village reports long-term debt of governmental funds 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. Long-term debt and other obligations financed by proprietary funds are reported as liabilities of those funds. 11. Reserves and Designations Fund balances are reserved to indicate that a portion of fund equity is not available for appropriation or is legally segregated for a specific future use. The description of each reserve indicates the purpose for which each was intended. Designated fund balance indicate that a portion of fund equity has been segregated based on tentative plans of the Village. Such plans or intent are subject to change. Unreserved undesignated fund balance is the portion of fund equity available for any lawful use. 12. Comparative Data/Reclassification Certain amounts in the 1994 columns have been reclassified to conform to 1995 presentation. Comparative total data for the prior year has been presented in selected sections of the financial statements to provide an understanding of changes in Village's financial position and operations. 13. Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned as "memorandum only" and 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. VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 14.Budget/GAAP Reconciliation As of September 30, 1995, the following reconciles expenditures reported on a GAAP basis to the budgetary basis: Deficiency of revenues over expenditures and other financing uses (budgetary basis)$(2,718,590) Prior year encumbrances (27,319) Current year encumbrances 9,482 Deficiency of revenues and other financing sources over expenditures and other financing uses (GAAP)$(2,736,427) NOTE 2. DEPOSITS AND INVESTMENTS At September 30, 1995, the Village maintained deposits (cash on hand) with book balances of $6,914,203. 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 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. The Village is authorized to invest in obligations of the U. S. Treasury, its agencies, instrumentalities and the State Board of Administration investment pool. The Village's investments are categorized in the following table to give an indication of the level of risk assumed by the Village at year end. Category 1 includes insured or registered investments held by the Village or its agent in the Village's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the Village's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent but not in the Village's name: VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 2. DEPOSITS AND INVESTMENTS At September 30, 1995, the Village's investments balances were as follows: Category 1 Carrying Amount Market Value U.S. Treasury Note $1,000,000 $1,000,000 $1,000,000 Certificates of Deposit 5,104,000 5,104.000 5,104,000 $6,104,000 6,104,000 6,104,000 Investments not subject to categorization: Deferred compensation plans 1,393,591 1,393,591 State investment pool 101,446 101,446 $7,599,037 $7,599,037 A reconciliation of cash and investments as shown on the combined balance sheet is a follows: Cash on hand $ 6,914,203 Carrying amount of investments 7,599,037 $14.513,240 Cash and cash equivalents $ 7,015,649 Investments 7,497,591 $14,513,240 NOTE 3. 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. At September 30, 1995, there were no significant delinquent taxes. VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 4. FIXED ASSETS The following is a summary of changes in general fixed assets account group during the year: Balance October 1, 1994 Additions Deletions Balance September 30, 1995 Land $ 9,238,317 $ 2,340 $ -$ 9,240,657 Buildings 554,291 32,785 -587,076 Improvements other than buildings 26,608 895,114 -921,722 Equipment 1,617,459 444,433 -2,061,892 Furniture and fixtures 47,926 36,946 -84,872 Total $11,484,601 $1,411,618 $ -$12,896,219 Depreciation is not required and has not been provided on general fixed assets. The following is a summary of proprietary fund type fixed assets at September 30, 1995: Balance Balance October 1, September 30, 1994 Additions Deletions 1995 Construction in progress $333,754 $92 $ - $1,263,487 NOTE 5. LONG-TERM DEBT Changes in general long-term debt during the year are summarized as follows: Balance October 1, 1994 Additions Reductions Balance September 30, 1995 Loan from FEMA $ 1,000,000 $ -$1,000,000 $ - Revenue bonds payable 9,200,000 -755,000 8,445,000 Compensated absences payable 226,111 103,058 -329,169 $10,426,111 $103,058 $1,755.000 $8,774,169 Revenue Bonds During the fiscal year ended September 30, 1994 the Village issued land acquisition revenue bonds of $9,200,000, the proceeds of which were used for the acquisition of the Village Green property. The Village has pledged public service tax revenues to secure payment of the principal and interest on the bonds. The bonds are due in annual principal installments ranging from $785,000 in fiscal 1996 to $1,105,000 in fiscal 2004. Interest accrues at 4.36% per annum. VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 5. LONG-TERM DEBT The annual requirements to amortize the bonds as of September 30, 1995, are as follows: Fiscal Year Ending September 30: Principal Interest Total 1996 $ 785,000 $ 351,089 $ 1,136,089 1997 820,000 316,100 1,136,100 1998 855,000 279,585 1,134,585 1999 895,000 241,435 1,136,435 2000 935,000 201,541 1,136,541 2001-2004 4,155,000 371,799 4,526,799 $8 445,000 $1,761,549 $10,206,549 PROPRIETARY FUND DEBT Bond Anticipation Notes Changes in proprietary fund debt during the year are summarized as follows: Balance Balance October 1, September 30, 1994 Additions 1995 Bond anticipation notes $ $7,20®0,000 $7 200 During the fiscal year ended September 30, 1995, the Village obtained financing for the west side stormwater construction project in the form of $7,200,000 Bond Anticipation Notes, Series 1995. Interest accrues at 4.89% per annum with a balloon principal payment due in fiscal year 1997. The annual requirements to amortize the notes as of September 30, 1995 are as follows: Principal Interest Total Fiscal year ending September 30: 1996 $ -$352,080 $ 352,080 1997 7,200,000 176,040 7,376,040 $7,20®0,000 $528,120 $71728,120 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 6. COMMITMENTS AND CONTINGENCIES Litigation The Village is involved in several lawsuits incidental to its operations, the outcome of which, in the opinion of management and legal counsel, should not have a material effect on the financial condition of the Village. Commitments The Village is obligated under a non-cancelable operating lease for office space for a period of two years commencing July 1, 1995. Rent expense was $49,000 for fiscal year 1995. The following is the commitment under the lease: Fiscal year ending September 30: 1996 $ 71,000 1997 54,000 $125,000 The Village, as of September 30, 1995, has outstanding construction commitments of approximately $8.8 million for their stormwater utility projects. Contingent Liability Federal and State programs in which the Village participates were audited in accordance with the provisions of U.S. Office of Management and Budget Circular A-128 and the Rules of the Auditor General of the State of Florida. Pursuant to those provisions, certain programs were tested for compliance with applicable grant requirements. While no matters of noncompliance were disclosed by the audit, government agencies may subject grant programs to additional compliance tests which may result in disallowed costs. In the opinion of management, future disallowances of current grant expenditures, if any, would not have a material effect on the Village's financial condition. NOTE 7. RESERVED/DESIGNATED FUND BALANCE As of September 30, 1995, fund balances in the general fund have been reserved or designated for the following purposes: Reserved Fund Balance General fund: Supplemental fire aid $ 106,000 Encumbrances 9,482 Beach improvements 23,027 Beautification of Crandon Boulevard 179,412 Recreation facilities 559,562 Grant audits 541,024 $1,418,507 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 7.RESERVED/DESIGNATED FUND BALANCE Designated Fund Balance General fund: Police/fire equipment and building $ 89,101 Community grants, maintenance and improvements 125,029 Future personnel expense 250,000 Professional fees 66,238 $530,368 NOTE 8. DEFERRED COMPENSATION PLAN The Village of Key Biscayne maintains a deferred compensation plan for its employees in accordance with Internal Revenue Code Section 457. The plan is voluntary and the Village does not contribute. Employees may elect to defer a portion of their salary until future years. Deferred compensation deposits are made into the employees' accounts through payroll deductions before income taxes are withheld. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Contributions by the employees for the fiscal year ended September 30, 1995 were $130,827. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights (until paid or made available to the employee or beneficiary) are solely the property and rights of the Village, subject only to the claims of the Village's general creditors. Participants' rights under the plan are equal to those of general creditors of the Village in an amount equal to the fair market value of the deferred account of each participant. 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 Village believes that it is unlikely that it will use plan assets to satisfy claims of general creditors in the future. NOTE 9. 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 created in accordance with Internal Revenue Code Section 401(a). 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, 1995 were $304,543 while the employee contributions were $166,005. 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. VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 9. DEFINED CONTRIBUTION PLAN Under a defined contribution pension plan, the benefits a participant will receive depends solely on the amount contributed to the participants' account, the returns earned on investments on those contributions, and forfeitures of other participants' benefits that maybe allocated to such participants' account. The Village's total payroll and covered payroll for fiscal year 1995 is $3,277,891. The Money Purchase Plan held no securities of the Village or related parties during the year or as of the end of the fiscal year. :el\VA"'A ;47 � '.�1:11silllll COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUPS STATEMENTS AND SCHEDULES 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 another fund. VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL FUND BALANCE SHEETS SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) 1995 1994 ASSETS Cash and cash equivalents $1,876,035 $5,727,073 Investments 1,000,000 - Due from other governments 82,657 82,658 Due from other funds 171,233 150,000 Accounts receivable 59,853 96,020 Total assets $3,189,778 $6,055,751 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable and accrued liabilities $ 341,645 $ 445,617 Deposits and performance bonds 25,330 - Interest payable -60,000 Deferred revenue 106,309 106,309 Deferred rent 13,746 4,650 Total liabilities 487,030 616,576 Fund balance: Reserved 1,418,507 3,262,027 Unreserved: Designated 530,368 2,096,967 Undesignated 753,873 80,181 Total fund balance 2,702,748 5,439,175 Total liabilities and fund balance $3,189,778 $6,055,751 VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30, 1995 Budget Actual Variance Favorable (Unfavorable) Revenues: Property taxes $6,786,441 $6,820,80 7 $ 34,366 Utility taxes 1,183,000 1,257,179 74,179 Franchise fees 625,000 652,844 27,844 Intergovernmental: State shared revenue 651,000 788,062 137,062 Licenses and permits: Occupational licenses 25,000 22,844 (2,156) Building permits 225,000 328,308 103,308 Other 1.000 -(1,000) 251.000 351.152 100.152 Charges for services 57.000 73,268 16.268 Other: Donations 998 8,000 7,002 Miscellaneous 65,200 65,200 998 73.200 72,202 Interest 100,000 369,540 269,540 Impact fees -250,000 250,000 Grants: Hurricane loss grant revenue -190,687 190,687 Other grants -77,931 77.931 268,618 268.618 Total revenue $9,654,439 $10,904,670 $1,250.231 VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30, 1995 Budget Actual Variance Favorable (Unfavorable) Expenditures: General government: Elected officials $ 10,000 $ 10,100 $ (100) Administration 347,154 328,322 18,832 Village clerk 123,957 110,336 13,621 Village attorney 200,000 166,722 33,278 Total general government 681,111 615,480 65,631 Public works 470,000 579,072 (109,072) Building, planning and zoning 466,878 467,621 (743) Parks and recreation 223,207 213,704 9,503 Public safety 4,425,154 4,290,678 134,476 Non-departmental 534,500 505,700 28,800 Capital outlay: Public works 5,000 4,266 734 Parks and recreation 11,500 1,044,787 (1,033,287) Public safety 157,727 472,440 (314,713) Non-departmental 1,482,901 154,228 1,328,673 1,657,128 1,675,721 (18,593) Debt service: Principal 755,000 1,755,000 (1,000,000) Interest 441,461 483,101 (41,640) 1,196,461 2,238,101 (1,041,640) Total expenditures $ 9,654,439 $10,586,077 $ (931,638) ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that the costs of providing goods or services be financed or recovered primarily through user charges. 0 Stormwater Utility System The stormwater utility system accounts for the construction and maintenance of the stormwater system. • Solid Waste Fund The solid waste fund provides collection service for trash removal. Solid waste expenditures are primarily for curbside collections. VILLAGE OF KEY BISCAYNE, FLORIDA ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) Stormwater Totals ASSETS Utility System Solid Waste Fund 1995 1994 Current assets: Cash and cash equivalents $ 3,702,597 $109,284 $ 3,811,881 $ Investments 5,104,000 -5,104,000 Accounts receivable -44,649 44,649 Interest receivable 158,206 -158,206 _ Total current assets 8,964,803 153,933 9,118,736 Construction in progress 1,263,487 -1,263,487 333,754 Total assets $10,228,290 $153,933 $10,382,223 $333,754 LIABILITIES AND EQUITY Current Liabilities: Accounts payable accrued liabilities $ 621,582 $ -$ 621,582 $ - Due to other funds 157,204 157,204 150,000 Total current liabilities 621,582 157,204 778,786 150,000 Bond anticipation notes 7,200,000 -7,200,000 - Total liabilities 7,821,582 157,204 7,978,786 150,000 Retained earnings (deficit)2,406,708 (3,271)2,403,437 183,754 Total liabilities and equity $10,228,290 $153,933 $10,382,223 $333,754 VILLAGE OF KEY BISCAYNE, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Stormwater Totals Utility System Solid Waste Fund 1995 1994 Operating revenue $ 464,066 $153,933 $ 617,999 $ Operating expenses: General and administrative costs 8,259 157,204 165,463 Operating income (loss)455,807 (3,271)452,536 Non-operating revenue (expense): Interest income 221,023 -221,023 Interest expense (163,32 6)-16( 3.326) Total non-operating revenues 57,697 -57,697 Income (loss) before transfers 513,504 (3,271)510,233 - Transfers in 1,709,450 -1,709,450 325,671 Net income (loss)2,222,954 (3,271)2,219,683 325,671 Retained earnings (deficit), beginning 183,754 -183,754 14( 1,917) Retained earnings (deficit), ending $2,406,708 $ (3,271)$2,403,437 $183,754 VILLAGE OF KEY BISCAYNE, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS FISCAL YEAR ENDED SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1994) Stormwater Totals Utility Solid Waste System Fund 1995 1994 Cash flows from operating activities: Operating income (loss)$ 455,807 $ (3,271 $452,536 $ - Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Increase in: Accounts receivable - (44,649)(44,649)- Interest receivable (158,206) -(158,206)- Increase (decrease) in: Accounts payable 621,582 -621,582 (26,507) Due to other funds (150,000 157,204 7,204 34,590 Total adjustments 313,376 112,555 425,931 8,083 Net cash provided by operating activities 769,183 109,284 878,467 8,083 Cash flows from non-capital financing activities: Transfers in 1,709,450 1,709,450 325,671 Net cash provided by non-capital financing activities 1,709,450 1,709,450 325,671 Cash flows from capital and relating financing activities: Construction in progress (929,733) -(929,733)(333,754) Proceeds from bond anticipation notes 7,200,000 -7,200,000 - Interest paid (163,326 16( 3.326) Net cash provided (used) by capital and related financing activities 6,106,941 -6,106,941 (333,754 Cash flows from investing activities: Purchase of investments (5,104,000) -(5,104,000) Interest received 221,023 -221,023 Net cash used by investing activities (4,882,977 (4,882,977) Net increase in cash 3,702,597 109,284 3,811,881 - beginningCash - --, Cash, ending $3,702,597 $109,284 $3,811,881 $ - :0Avir4, '.f1;lhElllil AGENCY FUNDS These funds are used to account for assets held for employees in accordance with the provisions of Internal Revenue Code Sections 401 and 457. VILLAGE OF KEY BISCAYNE, FLORIDA AGENCY FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) Deferred Defined Totals Compensation Plan Contribution Plan 1995 1994 ASSETS Investments $312,371 $1,081,220 $1,393,591 $671,487 Loans receivable -60,279 60,279 10,600 $312,371 $1,141,499 $1,453,870 $682,087 LIABILITIES Deferred benefits payable $312,371 $1,141,499 $1,453,870 $682,087 11 Ic VILLAGE OF KEY BISCAYNE, FLORIDA DEFERRED COMPENSATION PLAN AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FISCAL YEAR ENDED SEPTEMBER 30, 1995 Balance October 1, 1994 Additions Deletions Balance September 30, 1995 ASSETS Investments $135,817 $177.901 $1,347 $312,371 LIABILITIES Deferred benefits payable $135.817 $177,901 $1,347 $312,371 VILLAGE OF KEY BISCAYNE, FLORIDA DEFINED CONTRIBUTION PLAN AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FISCAL YEAR ENDED SEPTEMBER 30, 1995 Balance October 1, 1994 Additions Deletions Balance September 30, 1995 ASSETS Investments $535,670 $589,752 $44,202 $1,081,220 Loans receivable 10,600 62,709 13,030 60,279 $546,270 $652,461 $57,232 $1,141,499 LIABILITIES Deferred benefits payable $5461270 $652,461 $57,232 $1,141,499 GENERAL F TED 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, 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994) 1995 1994 General fixed assets: Land $ 9,240,657 $ 9,238,317 Buildings 587,076 554,291 Improvements other than buildings 921,722 26,608 Furniture and fixtures 84,872 47,926 Equipment 2,061, 892 1,617,459 Total general fixed assets $12,896,219 $11,484,601 Investment in general fixed assets by source: General fund $12,896,219 $11,484,601 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY SEPTEMBER 30, 1995 Land Buildings Improvements Other Than Buildings Furniture and Fixtures Equipment Total General government $ -$ -$ 11,299 $43,620 $ 159,619 $ 214,538 Parks and recreation 9,240,657 -904,186 -124,330 10,269,173 Public safety -587,076 6,237 41,252 1,777,943 2,412,508 $9,240,657 $587,076 $921,722 $84,872 $2,061,892 $12,896,219 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30, 1995 Balance October 1, 1994 Additions Deletions Balance September 30, 1995 General government $ 101,815 $ 112,723 $ -$ 214,538 Parks and recreation 9,247,389 1,021,784 -10,269,173 Public safety 2,135,397 277,111 -2,412,508 $11,484,601 $1,411,618 $ -$12,896,219 GENERAL LONG-TERM DEBT ACCOUNT GROUP To account for the Village's long-term obligations. VILLAGE OF KEY BISCAYNE, FLORIDA STATEMENT OF GENERAL LONG-TERM DEBT SEPTEMBER 30, 1995 (WITH COMPARATIVE TOTAL FOR SEPTEMBER 30, 1994) 1995 1994 Amount to be provided for retirement of general long-term debt $8,774 169 $10.426,111 General long-term debt payable: Bonds payable $ 8,445,000 $ 9,200,000 Loan from FEMA -1,000,000 Compensated absences payable 329,169 226,111 Total general long-term debt payable $8,774 169 $10,426,111 STATISTICAL SECTION VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL GOVERNMENT EXPENDITURES BY FUNCTION Fiscal Year 1992 1993 1994 1995 General Government Public Safety Parks and Recreation Public Works Total $1,468,000(')$ 13,511 $ 11,779 $ 86,580 $ 1,579,870 2,848,857()2,790,379 240,794 185,257 6,065,287 4,126,094(3)4,453,539 9,601,922(4)782,007 19,053,562 5,524,305 4,294,606 211,159 573,844 10,603,914 (1) Includes $783,280 Hurricane Andrew Expenses to 9/30/92. (2) Includes $1,251,264 Hurricane related expenses 10/01/92 through 9/30/93. (3) General government includes economic development, building,planning and zoning, debt service, capital outlay and non-departmental expenditures. (4) Includes acquisition of land for $9,238,317 for the Village Green, a park. Note: The Village's first year of operation was fiscal year 1992. Includes general fund only. VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL GOVERNMENT REVENUES BY SOURCE Fiscal Year Property Taxes Fees and Licenses Intergovernmental Utility Taxes Franchise 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 2,485,979 1,212,084 625,815 169,429 121,676 9,610,196 1994 6,640,045 629,246 997,501 1,268,428 668,020 115,664 288,978 10,607,882 1995 6,820,807 674,420 1,056,680 1,257,179 652,844 73,200 369,540 10,904,670 Note: The Village's first year of operation was fiscal year 1992. Includes general fund only. VILLAGE OF KEY BISCAYNE, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Tax Year Fiscal Year Assessed Value Tax Levy Total Collected cz~ Percent Collected 1992 1993 $1,617,141,088 $3,687,082 $3,536,480 95.9% 1993 1994 1,560,057,130 6,925,094 6,640,045 95.9 1994 1995 1,741,921,584 7,143,620 6,820,807 95.5 a>Assessments as of January 1 of the year listed; bills mailed in October of that year; taxes become delinquent at the end of April of the subsequent year. Initial property tax levy by the Village - October, 1992. (2) Collections reflect timely payment discounts of up to 4% and other adjustments. VILLAGE OF KEY BISCAYNE, FLORIDA ASSESSED ACTUAL VALUE OF TAXABLE PROPERTY Fiscal Year Real Property Personal Property Net Assessed Property Value 1992 $1,601,826,518 $15,314,570 $1,617,141,088 1993 1,543,711,468 16,345,662 1,560,057,130 1994 1,715,626,471 26,295,113 1,741,921,584 1995 1,744,363,535 23,093,470 1,767,457,005 Source: Dade County Property Appraisers Office VILLAGE OF KEY BISCAYNE, FLORIDA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Residential Commercial (000s) Omitted Fiscal Year Total Permits Issued NQ of Units Valuation N2 of Units Valuation Total of Construction Bank Deposits") 1992 35 25 $ 638,483 10 $ 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 1994 2,205 2,081 25,410,312 124 45,567,390 70,977,702 17,524,140 1995 2,857 2,568 33,820,503 289 2,099,661 35,920,164 17,938,762 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. Note: Village began issuing permits on September 1, 1992. VILLAGE OF KEY BISCAYNE, FLORIDA UTILITY TAX REVENUE BY SOURCE Fiscal Fuel Year Electricity Telecommunications Gas Oil Water Total 1992 $676,919 $157,887 $35,552 $3,548 $105,830 $ 979,736 1993 857,002 199,308 24,184 4,708 126,882 1,212,084 1994 888,752 202,702 26,925 4,331 145,719 1,268,429 1995 875,704 186,780 38,130 3,920 152,645 1,257,179 FRANCHISE FEE REVENUE BY SOURCE Fiscal Cable Year Electricity Television Telephone Total 1992 $112,658 $38,734 $ -$151,392 1993 570,605 39,821 15,389 625,815 1994 603,638 43,877 20,505 668,020 1995 589,031 43,899 19,914 652,844 VILLAGE OF KEY BISCAYNE, FLORIDA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS Village of Key Biscayne Dade County State School District Fiscal Year Village Millage Operating Millage Debt Service Millage Total County Millage SFWMD Millage FIND Millage Total State Millage Operating Millage Debt Service Millage Total School Millage Other Total 1992 2.280 7.305 1.139 8.444 .547 .052 .599 9.023 .505 3.445 9.528 24.296 1993 4.439 7.305 .830 8.135 .597 .052 .648 9.283 .640 1.1010)9.923 24.246 1994 4.101 7.253 .817 8.070 .497 .049 .516 9.503 .842 .443 10.345 23.505 1995 3.800 6.828 .789 7.617 .547 .040 .587 9.373 1.0162 .429 10.389 22.822 (') Village established its own fire district effective October 1, 1993. Source: Dade County Property Appraisers Office VILLAGE OF KEY BISCAYNE, FLORIDA RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND PER CAPITA Net Ratio of Net Bonded Net Bonded Fiscal Assessed Bonded Debt to Assessed Debt Year Population Value (') Debt Value Per Capita 1994 8,887 $1,560,057,130 $9,200,000 .59% $1,035 1995 8,894 1,741,921,584 8,445,000 .48% 949 From assessed actual value of taxable property c2~ Net bonded debt represents revenue bonds VILLAGE OF KEY BISCAYNE, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES Ratio of Debt Service to Total Total General General Fiscal Debt Governmental Governmental Year Principal Interest(') Service (2) Expenditures Expenditures 1994 $ - $194,989 $ 194,989 $19,053,562 1.0% 1995 755,000 384,661 1,139,661 10,603,914 10.7% (1) Excludes bond issuance and other costs (2) Debt service on revenue bonds Includes general fund only VILLAGE OF KEY BISCAYNE, FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30, 1995 Taxpayer Taxable Valuation % of Total Assessed Valuation Ocean Club of Key Biscayne $38,676,886 2.19% Grand Bay Hotel Residence 33,231,454 1.88 Sonesta Beach Hotel 28,349,588 1.60 Finivest Investment, Et. Al. (Key Colony)9,403,404 .53 Key Biscayne Shopping Center 8,026,685 .45 Galleria Mall 5,436,860 .31 Florida Power & Light 4,723,788 .27 Red Dragon Sands, Ltd.4,410,513 .25 C.G. Rebozo 4,242,244 .24 Southern Bell 4,025.292 .23 $140,526,714 7.95% 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 YEAR 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 8,854 INCOME * Per Capita Income ANGLO BLACK HISPANIC AVERAGE PER CAPITA 1990 $44,615 $24,577 $28,341 UNEMPLOYMENT RATES* *(Percent) $37,629 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Dade County 6.7 5.8 5.3 6.3 7.0 8.8 10.0 7.7 7.9 6.8 Village of Key Biscayne ------3.8 3.6 3.6 3.1 * SOURCE: Bureau of Census, Income Division **SOURCE: State Department of Labor VILLAGE OF KEY BISCAYNE, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 1995 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 1 505 33 1,740 2,500,000 gallons 807 122 2,857 2 1 (Operated by Dade County) 1 1 81 SUPPLEMENTARY AUDITOR'S REPORTS SECTION Rachlin Cohen & Holtz CERTIFIED PUBLIC ACCOUNTANTS & CONSLLTANTS A Partnership Including Prote,wnal A~,oaetton, Report of Independent Certified Public Accountants on Internal Control Structure Based on an Audit Performed in Accordance with Government Auditing Standards To the Honorable Mayor and Village Council Village of Key Biscayne, Florida We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the "Village") as of and for the year ended September 30, 1995, and have issued our report thereon dated January 25, 1996. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (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 the general purpose financial statements are free of material misstatement. The management of the Village is responsible for establishing 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 general purpose 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. In planning and performing our audit of the general purpose financial statements of the Village for the year ended September 30, 1995, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. -45- One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Dade (305) 377-4224 • Fay (305) 377-8331 700 Southeast Third AN enue, Third Floor, Ft Lauderdale, Florida 33316 a Broward (954) 525-1040 • Fai (954) 525-2004 VlembcI d tiunmut III IClnIt lunal k,ai,de, In, ~~dL ,[[I, e, in prim pal,die, Throughout the riot it ~nll)U ,.t the \menI.in In.tIWlr of t rI(ItI LI Pllhllt AUOlintanh I)n iII,)II I "I t I'IILh~c S'I tI II and the PIn dh ( unio,mic I' I hOn VL 1n1,. , If -, 11., ICI, InJIf I, ,f l .,hII. Puh1,. 1 ,,II t,nr. To the Honorable Mayor and Village Council Village of Key Biscayne, Florida Page Two Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the specific 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 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 structure and its operations that we consider to be material weaknesses as defined above. However, we noted certain matters that we reported to management in a separate schedule accompanying this report (page 58). This report is intended for the information of the Mayor, Village Council, management, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. Miami, Florida January 25, 1996 A441c'., &/-P, ,- /C~~ CERTIFIED PUBLIC AccoLNTANTS & COVULTANTS \ Partncr5lup Including Prote,tiional A,,oaahom Report of Independent Certified Public Accountants on Compliance with Laws and Regulations Based on an Audit Performed in Accordance with Government Auditing Standards To the Honorable Mayor and Village Council Village of Key Biscayne, Florida We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the "Village") as of and for the year ended September 30, 1995, and have issued our report thereon dated January 25, 1996. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (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 the financial statements are free of material misstatements. Compliance with laws, regulations, contracts, and grants, including state grants and aids appropriations applicable to the Village, is the responsibility of the Village's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Village's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. This report is intended for the information of the Mayor, Village Council, management, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. Miami, Florida January 25, 1996 IL-01~ d1l, -, Z/1 -47- One Southeast Third Avenue, Tenth Floor, Nliami, Florida 33131 • Dade (305) 377-4228 • Fav (305) 377-8331 700 Southeast Third AN enue, Third Floor, Ft Lauderdale, Florida 33316 • Broward (954) 525-1040 - Fav (954) 525-2004 %I, It, i of summit I stern it lono I \-w,mW,, lrn irdh ottire, in piinupa l tdie~ throughout t1k oild \Ienihei of th, Anleikdn Imhlute of lerhhed 1'uhh( -A'Lowdanh I)1v yon bn "I ( I'r,t~hec SMion and the I'm ilc C "1111, 1 air I'll, It, Se,hon \L mhi i of the I orid 1 h-owitli of ( ( ihh,t I'uhhi 1 , ount iN. Rachlin Cohen & Holtz CERTIFIED PUBLIC ACCOUNTANTS & CONSLLTINTS A Partner hip Including Protewonal Astiociatiom Management Letter in Accordance with the Rules of the Auditor General of the State of Florida To the Honorable Mayor and Village Council Village of Key Biscayne, Florida We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the "Village") as of and for the year ended September 30, 1995, and have issued our report thereon dated January 25, 1996. 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 connection with our audit of general purpose financial statements of the Village for the year ended September 30, 1995, we report the following in accordance with Chapter 10.550, Rules of the Auditor General, Local Government 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 audit. 2. The Village, during fiscal 1995, was not in a state of financial emergency as defined by Florida Statutes 218.503(1). 3. Recommendations made in the current and preceding annual financial audit have been addressed on page 58. 4. During the course of our audit, nothing came to our attention that caused us to believe that the Village: a. Was in violation of any laws, rules or regulations. b. Made any illegal or improper expenditures. C. Had improper or inadequate accounting procedures. 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 or defalcations. -48- One Southeast Third Av enue, Tenth Floor, Miami, Florida 53131 • Dade (305) 377-4228 • Faa (305) 377-8331 700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida 35316 - Brow°ard (954) 525-1040 • Fak (954) 525-2004 U,,] hL r ~ I Su0*nPt lot( rnlliona! \")Uat41 Ir, rk ith ~Ithu, ur pIII, rpol idre, throughout the r Or ,l Vleml'u of III( \wt-I, In In,Ghde n` ( erhhrd 1'11bh, Au )u[I tdnt, Dn I']ou h~i AFC Pra, IILe ~t t1,m an, 1 the Pr, dtr C owe i I . I' I, ~uhnn \kmhcr ,$ Ih~ 11 ,n' i III, tIt l t, of (i I Iih(,I I,Ilhllt Auinlntdnh 1-~ ~i To the Honorable Mayor and Village Council Village of Key Biscayne, Florida Page Two 5. The annual financial report for the year ended September 30, 1995 has been filed with the Department of Banking and Finance pursuant to Section 218.32, Florida Statutes and is in agreement with the audited financial statements of the same period. 6. The Village was incorporated by Laws of Florida 90-142. This report is intended for the information of the Mayor, Village Council, management, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. Miami, Florida January 25, 1996 Ii- CERTIFIED PUBLIC ACCOLNTANTS & CONSLLTAVS a Partner5hlp Including Protewonal \uucmtionti Report of Independent Certified Public Accountants on Schedule of Federal and State Financial Assistance To the Honorable Mayor and Village Council Village of Key Biscayne, Florida We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the "Village") as of and for the year ended September 30, 1995, and have issued our report thereon dated January 25, 1996. 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, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (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 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. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City taken as a whole. The accompanying Schedule of Federal and State 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. Miami, Florida January 25, 1996 Ae--I~ -r- 2~t -50- One Southeast Third A~ enue, Tenth Floor, Miami, Florida 33131 • Dade (305) 377-4228 • Fax (305) 377-8331 700 Southeast Third AN enue, Third Floor, Ft Lauderdale, Florida 33316 • Broward (953) 525-1040 • Lax (953) 525-2004 tihmhei i t summit IntNfnd homiI wte,, In, a ith oth,c, in Fri nuFa I ,ttie, throtl4hout the uotld MCnIbel of thv 1nu°i,, In biI I,' ~d ( r hhui Pubh, luounLmt, I M i'inn ~m',I ( PI a,hu' tie,thon ind the Pm ate ( "anpanir, Pi n ate ~e,hon Men, i of thr I Innd, Imirtuh, ~d ( i ihhi I I'uhh, ln)mtmt, VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE FISCAL YEAR ENDED SEPTEMBER 30, 1995 Federal Grantor/Pass-Through CFDA Grant/Contract Grantor Program Title N2 N2 Expenditures Federal-Nonmajor Programs: U.S. Small Business Administration Pass-through Florida Department of Agriculture and Consumer Services-1993 SBA National Small Business Grant N/A SBA-37-1974 $ -(1) U.S. Department of Agriculture-Forest Service Pass-through Florida Department of Agriculture and Consumer Services-Florida Urban and Community Forestry N/A 93-80-1969 19,918 U.S. Department of Justice Drug Control and Systems Improvements 16.579 3,917 (2) U.S. Department of Interior-National Park Service Pass-through Florida Department of Environmental DEP-L-354 Protection - Land and Water Conservation N/A LWCF-12-00354 200,000 (3) Total federal financial assistance expended 223,835 State Programs: Hurricane Recovery and Rebuilding 94-EO-2F-11 Trust Fund -23-02-025-026 -(4) Florida Department of Environmental Protection-Recreation Development Assistance Program -F96068 166,406 Total state financial assistance expended 166,406 Total federal and state financial assistance expended $390.241 (1) Expenditures were incurred in FY 94 amounting to $69,975 - Grant award with matching was $63,194 (2) Actual expenditures in FY 95 were $4,296 - Grant award was for $3,917 (3) Actual expenditures in FY 95 were $1,139,569 - Grant award with matching was $200,000 (4) Grant was for recovery of lost revenues - Grant amount for FY 95 was $190,000 Rachlin Cohen & Holtz CERTIFIED PUBLIC ACCOLNTANTS & CONSULTANTS A Partnei5htp Including Profewonal A,,w( ation5 Report of Independent Certified Public Accountants on the Internal Control Structure used In Administering Federal Financial Assistance Programs To the Honorable Mayor and Village Council Village of Key Biscayne, Florida We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the "Village") as of and for the year ended September 30, 1995, and have issued our report thereon dated January 25, 1996. We have also audited the compliance of the Village of Key Biscayne, Florida with requirements applicable to major federal financial assistance programs and have issued our report thereon dated January 25, 1996. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget (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 the general purpose financial statements are free of material misstatement and whether the City complied with laws and regulations, non-compliance with which would be material to a major federal financial assistance program. In planning and performing our audit for the year ended September 30, 1995, we considered the internal control structure of the Village, in order to determine our auditing procedures for the purpose of expressing our opinions on the general purpose financial statements of the Village, and on the compliance of the Village 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 January 25, 1996. The management of the Village is responsible for establishing 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, 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 of noncompliance may nevertheless occur and not be detected. -52- One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 - Dade (305) 377-4228 - Fax (305) 377-8331 700 Southeast Third Av,enue,Third Floor, Ft Lauderdale, Floirda 33316 - Broward (953) 525-1040 - Fax (954) 525-2004 111'n1hPr oI'urnnnf Inicmahunal 1~~nuate~, In. «It I A I Wi n pi InUpol UhC~ IhnuighoUt the ~ Or III \Ienihe,oftheAnim,InIn'tduI-ofCerhhedIhthh~AIuam6lnt'I)nmontorofC['i,uhuSahonandtheI'mIII, (ornpanwe I'IndIt tie, hon \1"",1 nI th, I I'), ,I 1 1-10, h, nt I , , hhr,~ Pnhh, 1u n... it To the Honorable Mayor and Village Council Village of Key Biscayne, Florida Page Two 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 Controls Cash; Receivables; Revenues and Expenditures. General Requirements Political Activity; Davis-Bacon Act; Civil Rights; Cash Management; Federal Financial Reports; Allowable Costs/Cost Principles; Drug-free Workplace Act; and Administrative Requirements. Specific Requirements Types of services allowed or not allowed; eligibility; matching, level of effort, and/or earmarking; claims for advances and 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 placed in operation, and we assessed control risk. During the year ended September 30, 1995, the Village of Key Biscayne, Florida expended 100% 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's major federal financial assistance programs, which are identified in the accompanying Schedule of Federal and State 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. Our consideration of the internal control structure policies and procedures used in administering federal financial assistance programs would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. 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. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. -53- To the Honorable Mayor and Village Council Village of Key Biscayne, Florida Page Three This report is intended for the information of the Mayor, Village Council, management, the Auditor General of the State of Florida and grantor agencies. However, this report is a matter of public record and its distribution is not limited. Miami, Florida January 25, 1996 1jjh"' &A,"- "- '44e~ Rachlin Cohen & Holtz CERTIFIED PUBLIC ACCOUNTANTS & C ONSULTANTS A Partnership Including hote-ional AS,ociations Report of Independent Certified Public Accountants on Compliance with General Requirements Applicable to Federal Financial Assistance Programs To the Honorable Mayor and Village Council Village of Key Biscayne, Florida We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the "Village") as of and for the year ended September 30, 1995, and have issued our report thereon dated January 25, 1996. We have applied procedures to test the Village's compliance with the following requirements applicable to each of its federal financial assistance programs, which are identified in the Schedule of Federal and State Financial Assistance, for the year ended September 30, 1995; political activity, Davis-Bacon Act, civil rights, cash management, federal financial reports, allowable costs/costprinciples, drug free workplace, and administration requirements. 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 Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Village'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 coming to our attention that caused us to believe that the Village had not complied, in all material respects, with those requirements. This report is intended for the information of the Mayor, Village Council, management, the Auditor General of the State of Florida and grantor agencies. However, this report is a matter of public record and its distribution is not limited. Miami, Florida January 25, 1996 wAx", V _1W44 -55- One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 - Dade (305) 377-4228 - Fay (305) 377-8331 700 Southeast Third Av enue, Third Floor, Ft Lauderdale, Florida 33316 - Broward (954) X25-1040 & Fav (954) 525-2004 llunhci r t 4tmnnt IntCrllatI01VI ~~ X Jto', In, n ith othL C' in prinupal titit, thwughout iha world \Ic[I ibei Ut the )nTCrI'dn IntitItllti of LCrtIf],d I'Ohh, 1U Otintant, I)n uIJ^ iV1 "I C Piadir" "Colon and tilt' PYII AL' C omi~ann, iirate"Llhl n MonI'cr (It the i Iondd Imtitul,' ,d l i Itihrrt P1111111 1<<ountant, Rachlin Cohen & Holtz CERTIFILD PUBLic AccOLNTAvTS & CovSLLTANTS A Partnership Including Prote,monal A,,mwttons Report of Independent Certified Public Accountants on Compliance with Specific Requirements Applicable to Major Financial Assistance Programs To the Honorable Mayor and Village Council Village of Key Biscayne, Florida We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the "Village") as of and for the year ended September 30, 1995, and have issued our report thereon dated January 25, 1996. We have also audited the Village's compliance with the requirements governing types of services allowed or unallowed; eligibility; matching, level of effort, or earmarking; reporting; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major financial assistance programs, which are identified in the accompanying Schedule of Federal and State Financial Assistance, for the year ended September 30, 1995. The management of the Village is responsible for the Village'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 Office of Management and Budget (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's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Village complied, in all material respects, with the requirements governing types of services allowed or unallowed; eligibility; matching, level of effort, or earmarking; reporting; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs for the year ended September 30, 1995. This report is intended for the information of the Mayor, Village Council, management, the Auditor General of the State of Florida and grantor agencies. However, this report is a matter of public record and its distribution its not limited. Miami, Florida January 25, 1996 14 0 -56- One Southeast Third Avenue, Tenth Flour, Miami, Florida 33131 • Dade (305) 377-4228 • Fav (305) 377-8331 700 Southeast Third A enue, Third Floor, Ft Lauderdale, Florida 33316 • Broward (954) 525-1040 • Fay (954) 525-2004 11embeI o1 `11m1111t IOterOltI0Il I \,v,ilah 111, 1,1ti, nBkt, ul pn11Upa1 Jhc, thlOtu;hUld the 1W1IJ \Il'WN I Ut 010 \111F11,d11 Imllhlt ' ut k Ohhtd 'uhllt Au0LIIltWt1 I)n 111011 i1)1 tit C P1,0110 ti<<hnn and the Prk ale ( JOIp, Oh, I'I n.th 1ft 11011 VI, n hei 't thi I Io'"I i Irnldutr of ( -hhPd Puhk \. ) t,M, CERTIFIED PUBLIC AccOLNTA\TS & CONSULTANTS A Part11ersh1P lnduding P)ofe,stunal \ssociations Report of Independent Certified Public Accountants on Compliance with Specific Requirements Applicable to NonMajor Federal Financial Assistance Program Transactions To the Honorable Mayor and Village Council Village of Key Biscayne, Florida We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the "Village") as of and for the year ended September 30, 1995, and have issued our report thereon dated January 25, 1996. In connection with our audit of the general purpose financial statements of the Village, and with our consideration of the Village's control structure used to administer financial assistance programs, as required by Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments, we selected certain transactions applicable to certain nonmajor financial assistance programs for the year ended September 30, 1995. As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed; unallowed; matching; and claims for reimbursement that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Village's compliance with those requirements. Accordingly, we do not express such an opinion. We respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Village had not complied, in all material respects, with those requirements. This report is intended for the information of the Mayor, Village Council, management, the Auditor General of the State of Florida and grantor agencies. However, this report is a matter of public record and its distribution is not limited. 12s,&" /.f PLpAi,.,,, r Miami, Florida January 25, 1996 -57- One Southeast Third Avenue, Tenth Flour, Miami, Florida 33131 • Dade (305) 377-4228 • FaN, (305) 377-8331 700 Southeast Third A\enue, Third Floor, Ft Lauderdale, Florida 31316 • Broward (954) 525-1040 • f a\ (954) 525-2004 Ninnhci )t ~'u01 lit IntclnBhOnll A„Itk Ac , In, ~~ ith , th(C, in PI MOpal LthC, thruughUUt the t% III),! \IC11hei III, AIII, rnI In. hf,~ILot( crhhed Puhli~A, , )untant,I);vyon b,i1I(Pra,ti'v`,",hon.tnd the Prnatc( om om,, Pi n a t. h•. hot \knlhet 1 r PIC I 1011d 1 In,tItutL ,t ( l ihhcd I'uhh( \,, OU nta [It, VILLAGE OF KEY BISCAYNE, FLORIDA RECOMMENDATION TO IMPROVE THE VILLAGE'S ADMINISTRATIVE AND ACCOUNTING CONTROLS FISCAL YEAR ENDED SEPTEMBER 30, 1995 Prior Year Recommendation Not Implemented in Current Year Compensated Absences The recordkeeping function for compensated absences (vacation and sick leave) is handled by the responsible departments (general employees, police and fire). The recordkeeping for the general employees was inadequate as there was no written authorization for used vacation and sick leave time. We recommend that the Village require written authorization for vacation and sick leave time approved by supervisory personnel and maintain those leave records in the personnel files. We also recommend the Village review the recordkeeping function of the police and/or fire departments and adopt similar procedures. This matter also applies to the current year. Managements Response The Village has established policies to ensure that written authorization for vacation and sick leave used by the employee is obtained and that the leave records are maintained in their personnel file.