HomeMy Public PortalAboutCAFR 1996.pdfVILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1996
Prepared by:
THE FINANCE DEPARTMENT
VILLAGE OF KEY BISCAYNE, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 1996
TABLE OF CONTENTS
PAGE
I. INTRODUCTORY SECTION
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 1
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW):
Combined Balance Sheet - All Fund Types and Account Groups 2
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances - 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 General Purpose Financial Statements 7
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
GENERAL FUND:
Comparative Balance Sheets 20
Schedule of Revenues and Expenditures - Budget and Actual 21
ENTERPRISE FUNDS:
Combining Balance Sheets 23
Combining Statements of Revenues, Expenses and Changes in
Retained Earnings 24
Combining Statements of Cash Flows 25
AGENCY FUNDS:
Combining Balance Sheets 26
Statement of Changes in Assets and Liabilities -
Deferred Compensation Plan 27
Statement of Changes in Assets and Liabilities -
Defined Contribution Plan 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 Governmental Expenditures by Function 33
General Governmental 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 of Financial Statements Performed
in Accordance with Government Auditing Standards
45
Report of Independent Certified Public Accountants on Compliance
with Laws and Regulations Based on an Audit of Financial Statements
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
PAGE
IV. SUPPLEMENTARY AUDITOR'S REPORTS SECTION
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
52
Report of Independent Certified Public Accountants on Compliance
with General Requirements Applicable to Federal Financial
Assistance Programs 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
Schedule of Findings 58
IVATATA
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INTRODUCTORY SECTION
Village Council
John F Fesra, Mayor
Michele Padovan, Vice Mayor
Mortimer Fried
Gregory C. Han
Hugh T. O'Reilly
Christina Dearing Reed
Betty Sime
Village Manager
C Samuel Kissinger
VILLAGE OF KEY BISCAYNE
Office of the Village Manager
January 31, 1997
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, 1996 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.
r
85 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5514 • Fax: (305) 365-8936
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, 1996,
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.
Major 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, 1996 was
$7,660,000. 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
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
111
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
Utility Taxes
Franchise Fees
Property Taxes
Intergovernmental
Licenses and Permits
Charges for Services
Impact Fees
Donations
Other
Interest
Hurricane Loss Grant
Grants
Revenue
Total Revenue
EXPENDITURES (Budgetary Basis)
Function
General Government
Public Works
Building, Zoning & Planning
Parks and Recreation
Public Safety
Debt Service
Non -Departmental
Transfer to Capital Improv. Fund
Total Expenditures & Transfers
FY 1996
$1,294,486
638,096
6,486,019
790,403
430,208
168,800
-0-
237,856
2,544
280,570
267,682
778,639
$11,416,303
FY 1996
$605,713
544,965
593,635
237,775
4,821,253
1,136,089
425,256
1,041,836
$9,406,522
FY 1995
$ 1,257,179
652,844
6,820,807
788,062
351,152
73,268
250,000
8,000
65,200
3 69, 540
190,688
77,930
$10,904,670
FY 1995
$ 615,480
579,072
467,621
213,704
4,290,678
2,238,101
505,700
1,675,721
$ 10,586,077
iv
Capital Projects 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 Projects 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 completed in early 1996.
The second segment, estimated to cost $7,200,000 covers the area from Crandon Boulevard and
West to Biscayne Bay. It was begun in September 1995 and completion is anticipated by May 1997.
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, 1996, 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 $1,831,250 in investments for the fiscal year ended September 30, 1996.
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, 1996 were $558,989.
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
v
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, 1996, the general fixed
assets acquired amount to $17,100,597. Major additions for FY 1995-96 are: donated land for the
Beach park, public safety equipment and vehicles.
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, 1996 had a balance of $116,712 in the
General Fund and $5,982 for the Law Enforcement Trust Fund. The Village purchased a one-year
7.25%, $1,000,000 Treasury Note in January 1995, which matured in January 1996.
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 Standard Insurance
Company. 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
Annual Financial Report for the Fiscal Year ended September 30, 1995.
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, 1995.
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
vi
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 their eligibility for Fiscal Year ended September 30, 1996.
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 & Holtz for their professional approach and high standards in conduct of their
independent audit of the Village's financial records and transactions.
Respecfully submitted,
C.Samuel Ki finger
Village Mana er
Jack N'eustadt
Director of Finance and Administrative Services
C SK/JN/adv
vii
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, 1995
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.
'1'ii'l
Preside
s 40 .,zs„e
Executive Director
VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30, 1996
VILLAGE COUNCIL
John F. Festa, Mayor
John Waid, Vice -Mayor Michele Padovan
Raul Llorente Betty Q. Sime
Hugh T. O'Reilly Raymond P. Sullivan
VILLAGE MANAGER
C. Samuel Kissinger
VILLAGE CLERK
Conchita Alvarez
VILLAGE ATTORNEY
Weiss, Serota & Helfman, P.A.
FINANCE DIRECTOR
Jack Neustadt
VILLAGE AUDITORS
Rachlin Cohen & Holtz
Certified Public Accountants
VILLAGE OF KEY BISCAYNE, FLORIDA
ORGANIZATION CHART
VOTER
1
I
VILLAGE I I LOCAL
COUNCIL H PLANNING I
I I
AGENCY I
VILLAGE
CLERK
SPECIAL
MASTERS
VILLAGE
MANAGER
ASSISTANT
TO
MANAGER
VILLAGE
ATTORNEY
DEPARTMENT
OF BUILDING,
ZONING AND
PLANNING
I 1
-I BUILDINGI
I_________, I
1-1 ZONING I
I I
1
PLANNINGI
I
II 1
CODE
ASSISTANCE
I
DEPARTMENT
OF EMERGENCY
SERVICES
,
FIRE
RE SCUE
POLICE
DEPARTMENT
OF
RECREATION
SPECIAL
EVENTS
DEPARTMENT
OF
PUBLIC WORKS
SPORTS
11 ATHLETICS
1 PROGRAMS/
TOURS
VILLAGE
ENGINEER
I
I
I
I
I
DEPARTMENT
OF FINANCE
AND ADMIN.
SERVICES
CONTRACT
SUPERVISOR
i
1
STORMWATER
MANAGEMENT
FINANCE/
ACCOUNTING
I
H
1
I
II
L
1
REFUSE
COLLECTION
& RECYCLING
MAINTENANCE
PERSONNEL
BENEFITS
FINANCIAL SECTION
RCH
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partncr,hip including PiotcSVonal \ ociihon5
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor, Village Council and Village Manager
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, 1996, as listed in the table of contents. These general
purpose financial statements are the responsibility of the Village's management. Our responsibility is to express
an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects,
the financial position of the Village as of September 30, 1996 and the results of its operations and cash flows of its
proprietary fund types for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated December 5, 1996 on our
consideration of the Village's internal control structure and a report dated December 5, 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, 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.
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Miami, Florida
December 5, 1996
One Southeast Third Avenue, Tenth Floor, Vliamt, Florida 33131 • Dade (305) 377-4228 • Fa\ 1305)177-8331
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GENERAL PURPOSE
FINANCIAL STATEMENTS
(Combined Statements -Overview)
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
SEPTEMBER 30, 1996
(WITI I COMPARATIVE TOTALS FOR SEPTEMBER 30, 1995)
Governmental Proprietary Fiduciary Account Totals
Fund Types Fund Types Fund Types Groups (Memorandum Only)
Trust General General
Capital Internal and Fixed Long -Term
ASSETS AND OTHER DEBITS General Projects Enterprise Service Agency Assets Debt 1996 1995
Cash and cash equivalents $ 1,728,672 $ 2,666,155 $ 1,227,094 $ $ - $ $ - $ 5,621,921 $ 7,015,649
Investments 2,000,000 - 4,291,789 2,160,706 - 8,452,495 7,497,591
Participants' loans receivable 229,533 229,533 60,279
Due from other governments 111,250 89,677 - 200,927 82,657
Due from other funds - - - 171,233
Accounts receivable 87,607 91,830 179,437 104,502
Interest receivable 40,986 141,761 - 182,747 158,206
General fixed assets 5,784,160 17,100,597 - 22,884,757 14,159,706
Amount to be provided for retirement of general long-term debt 8,163,152 8,163,152 8,774,169
Total assets and other debits $ 3,968,515 $ 2,666,155 $ 1 1,626,31 1 $ $ 2.390,239 $ 17,100,597 $ 8,163,152 $ 45,914,969 $ 38,023,992
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities
Accounts payable and accrued liabilities $ 327,921 $ 91,822 $ 484,462 $ - $ - $ - $ $ 904,205 $ 1,010,600
Due to other funds - - - - 171,233
Deposits and performance bonds 25,600 - 25,600 25,330
Deferred revenue 106,309 106,309 106,309
Deferred rent - 13,746
Deferred benefits payable - 2,390,239 2.390,239 1,453,870
Bond anticipation notes 7,200,000 - - 7,200,000 7,200,000
Compensated absences payable - 503,152 503,152 329,169
Revenue bonds payable 7,660,000 7,660,000 8,445,000
Total liabilities 459,830 91,822 7,684,462 2,390,239 8,163,152 18,789,505 18,755,257
Equity and other credits
Investment in general fixed assets - 17,100,597 17,100,597 12,896,219
Contributed capital 2,682,901 2,682,901 -
Retained earnings 1,258,948 1,258,948 2,403,437
Fund balance
Reserved 2,085,777 2,574,333 - - - 4,660,110 1,418,507
Unreserved
Designated 484,965 484,965 530,368
Undesignated 937,943 - 937,943 2,020,204
Total equity and other credits 3,508,685 2,574,333 3,941.849 17,100,597 27,125,464 19,268,735
Total liabilities, equity and other credits $ 3,968,515 $ 2,666,155 $ 11,626,311 $ - $ 2,390,239 $ 17,100,597 $ 8,163,152 $ 45,914,969 $ 38,023,992
Sec notes to general purpose financial statements
-2-
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1995)
Totals
(Memorandum Only)
Capital
General Project
Fund Fund 1996 1995
Revenues:
Property taxes S 6,486,019 S - S 6,486,019 $ 6,820,807
Utility taxes 1,294,486 - 1,294,486 1,257,179
Franchise fees 638,096 638,096 652,844
Intergovernmental 791,403 791,403 788,062
Licenses and permits 430,208 430,208 351,152
Charges for services 167,800 167,800 73,268
Donations 277,856 277,856 -
Other 2,544 2,544 73,200
Interest 280,570 76,080 356,650 369,540
Impact fees - 250,000
Grants 1,047,321 1,047,321 268,618
Total revenues 11,416,303 76,080 11,492,383 10,904,670
Expenditures:
Current:
General government
Public works
Building, zoning, and planning
Parks and recreation
Public safety
Non -departmental
Capital outlay
Debt Service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues and other financing
sources over expenditures and other financing uses
Fund balances, beginning
643,165
753,823
593,635
234,154
4,634,385
536,054
215,441
785,000
351,089
574,928
1,218,093 615,480
753,823 573,844
593,635 467,621
234,154 211,159
4,634,385 4,294,606
536,054 512,331
215,441 1,752,174
785,000 1,755,000
351,089 483,101
8,746,746 574,928 9,321,674 10,665,316
2.669,557 (498,848) 2,170,709 239,354
1,806,850 1,806,850 1,327,733
(1,863,620) (1,863,620) (3,037,183)
(1,863,620) 1,806,850 (56,770) (1,709,450)
805,937 1,308,002 2,113,939 (1,470,096)
2,702,748 1,266,331 3,969,079 5,439,175
Fund balances, ending S 3,508,685 S 2,574,333 $ 6,083,018 S 3,969,079
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30, 1996
Revenues:
Property taxes
Utility taxes
Franchise fees
Intergovernmental
Licenses and permits
Charges for services
Other
Interest
Grants
Total revenues
Expenditures:
Current:
General government
Public works
Building, planning and zoning
Parks and recreation
Public safety
Non -departmental
Debt Service:
Principal
Interest
Total expenditures
Excess of revenues over expenditures
Other financing uses:
Transfers out
Total other financing uses
Excess of revenues over expenditures
and other financing uses
Budget
$ 6,380,520
1,295,800
678,500
728,500
405,000
54,500
150,000
28,900
9,721,720
Budgetary
Basis
Actual
$ 6,486,019
1,294,486
638,096
791,403
430,208
167,800
280,400
280,570
1,047,321
11,416,303
651,620 605,713
491,869 544,965
532,494 593,635
239,821 237,775
4,916,023 4,821,253
711,968 425,256
785,000 785,000
351,089 351,089
8,679,884 8,364,686
Variance
Favorable
(Unfavorable)
$ 105,499
(1,314)
(40,404)
62,903
25,208
113,300
280,400
130,570
1,018,421
1,694,583
45,907
(53,096)
(61,141)
2,046
94,770
286,712
315,198
1,041,836 3,051,617 2,009,781
(1,041,836) (1,863,620) (821,784)
(1,041,836) (1,863,620) (821,784)
- $ 1,187,997 $ 1,187,997
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1995
1996 1995
Operating revenue $ 698,006 $ 617,999
Operating expenses:
General and administrative costs
Operating income
244,981 165,463
453,025 452,536
Non -operating revenue (expense):
Interest income 455,697 221,023
Interest expense (352,080) (163,326)
Intergovernmental 8,319
Total non -operating revenue (expense) 111,936 57,697
Income before transfers 564,961 510,233
Transfers in 1,709,450
Net income 564,961 2,219,683
Retained earnings, beginning 2,403,437 183,754
Reclassification of transfer (1,709,450) -
Retained earnings, beginning, as restated 693,987 183,754
Retained earnings, ending $ 1,258,948 $ 2,403,437
See notes to general purpose financial statements.
VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1995)
1996 1995
Cash flows from operating activities:
Operating income
Adjustments to reconcile operating income to net
cash provided by operating activities:
(Increase) decrease in:
Accounts receivable
Interest receivable
Due from other governments
Increase (decrease) in:
Accounts payable
Due to other funds
Total adjustments
Net cashing provided by operating activities
Cash flows from non -capital financing activities:
Transfers in
Net cash provided by non -capital financing activities
Cash flows from capital and related financial activities:
Construction in progress
Proceeds from capital contributions
Proceeds from bond anticipation notes
Interest paid
Net cash provided (used) by capital and related
financing activities
Cash flows from investing activities:
Maturities (purchase) of investments
Interest received
Net cash provided (used) by investing activities
Net increase (decrease) in cash
Cash, beginning
Cash, ending
$ 453,025 $ 452,536
(47,181)
16,445
(89,677)
(137,120)
(157,204)
(44,649)
(158,206)
621,582
7,204
(414,737) 425,931
38,288 878,467
1,709,450
1,709,450
(4,520,673) (929,733)
981,770
7,200,000
(352,080) (163,326)
(3,890,983) 6,106,941
812,211
455,697
(5,104,000)
221,023
1,267,908 (4,882,977)
(2,584,787) 3,811,881
3,811,881
$ 1,227,094 $ 3,811,881
See notes to general purpose financial statements.
NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
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 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.
The Village is not associated with 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE 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 Village. 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, zoning and planing and public works services.
The capital projects fund accounts for the acquisition or construction of major capital
projects not being financed by proprietary funds. The Village maintains one capital
projects fund; the capital improvement fund.
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 operations consist of a stormwater utility system and a solid waste
fund.
Fiduciary Fund Type
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 general long-term obligations. Accordingly, the Village
maintains a general fixed assets account group and a general long-term debt account
group.
3. Measurement Focus
Governmental Fund Types
Governmental funds use the flow of current financial resources measurement focus rather
than upon net income determination. Only current assets and current liabilities are included
on its balance sheet with fund balance representing available spendable resources.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Proprietary Fund Type
Proprietary funds are accounted for on the flow of economic resources measurement focus.
Accordingly, all assets and liabilities are included on the balance sheet, and the
determination of net income is necessary for sound financial administration.
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 and the general long-term debt account group are
concerned only with the measurement of financial position.
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 liabilities 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 or expenses are
recognized in the accounts and reported in the financial statements. The basis of accounting
relates to the timing of measurement made, regardless of the focus applied.
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.
Taxes, intergovernmental revenues and interest are susceptible to accrual. Sales taxes
collected and held by the State at fiscal year end on behalf of the Village are also recognized
as revenue. Other receipts and fees 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.
Expenditures are generally recognized when the related fund 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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 a GASB
pronouncement.
5. Budgets and Budgetary Accounting
An annual appropriated budget is prepared for the general fund.
The Village follows these procedures in establishing the budgetary data reflected in the financial
statements:
(a) The Village Manager submits to the Council a proposed operating budget for the ensuing
fiscal year. The operating budget includes proposed revenues and expenditures with an
explanation regarding each expenditure that is not of a routine nature.
(b) Public hearings are conducted to obtain taxpayer comments.
(c) Prior to October 1, the budget is legally enacted through passage of 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), except for certain accruals.
(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.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6. Encumbrances
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. 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 fund and are capitalized at
historical cost or estimated cost if actual historical cost is not available in the general fixed
assets account group, except for certain infrastructure assets which include streets, alleys,
sidewalks, drainage and lighting systems which are immovable and of value only to the Village.
Depreciation is not required and has not been provided on general fixed assets.
Proprietary fund fixed assets currently consist of assets capitalized and classified as construction
in progress for the stormwater utility system project.
9. Compensated Absences
It is the Village's policy to permit employees to accumulate earned but unused vacation and sick
pay benefits within specified limits. The accumulated unpaid vacation and sick leave is reported
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 -terns debt and other obligations financed by proprietary funds are reported as liabilities of
those funds.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 balances 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. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Although these estimates are
based on management's knowledge of current events and actions it may undertake in the future,
they may ultimately differ from actual results.
13. Comparative Data/Reclassification
Certain amounts in the September 30, 1995 columns have been reclassified to conform to
September 30, 1996 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.
14. Memorandum Only - Total Columns
Total columns on the combined statements which are captioned "memorandum only" aggregate
the columnar amounts presented by fund type and account group and are presented only to
facilitate financial analysis. Data in these columns do not present financial position or results of
operations in conformity with generally accepted accounting principles; neither is such data
comparable to a consolidation. Interfund eliminations have not been made in the aggregation of
this data.
15. Budget/GAAP Reconciliation
As of September 30, 1996, the following reconciles expenditures reported on a GAAP basis to
the budgetary basis:
Excess of revenues over expenditures and other financing uses
(budgetary basis) $1,187,997
Unbudgeted expenditures of reserves (378,455)
Prior year encumbrances (9,482)
Current year encumbrances 5,877
Excess of revenues and other financing sources over expenditures
and other financing uses (GAAP) $ 805,937
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS
At September 30, 1996, the Village maintained deposits (cash on hand) with book balances of
$5,499,227.
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, or securities
held by the Village or its agent in the Village's name. Category 2, includes uninsured and
unregistered, with securities held by the counterparty's trust department or agent in the Village's
name. Category 3, includes uninsured and unregistered, with securities held by the counterparty, or
by its trust department or agent but not in the Village's name.
At September 30, 1996, the Village's investments balances were as follows:
Carrying Market
Category 1 Amount Value
Certificates of Deposit
Investments not subject to categorization:
Defined contribution plan
Deferred compensation plan
State Board of Administration investment pool
$6,291,789 $6,291,789 $6,291,789
1,831,250
558,989
122,694
1,831,250
558,989
122.694
$8,804,722 $8,804,722
A reconciliation of cash and investments as shown on the combined balance sheet is a follows:
Cash on hand
Carrying amount of investments
Cash and cash equivalents
Investments (includes participants' loans receivable)
$ 5,499,227
8,804,722
$14,303,949
$ 5,621,921
8,682,028
$14,303,949
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
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 and are due the following November 1.
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
taxes with interest and penalties are sold by Dade County, with remittance to the Village for its
share of those receipts. At September 30, 1996, there were no significant delinquent taxes.
NOTE 4. FIXED ASSETS
The following is a summary of changes in general fixed assets during the year:
Balance Balance
September 30, September 30,
1995 Additions Deletions 1996
Land $ 9,240,657 $4,000,000 (I) $ - $13,240,657
Buildings 587,076 587,076
Improvements other than buildings 921,722 42,671 - 964,393
Equipment 2,061,892 162,328 6,706 2,217,514
Furniture and fixtures 84,872 6,085 - 90,957
Total $12,896,219 $4,211,084 $6,706 $17,100,597
(1) Donated property
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, 1996:
Balance Balance
September 30, September 30,
1995 Additions Deletions 1996
Construction in progress
$1,263,487 $4,520,673 $ - $5,784,160
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 5. LONG-TERM DEBT
Changes in general long-term debt during the year are summarized as follows:
Balance Balance
September 30, September 30,
1995 Additions Payments 1996
Revenue bonds payable
Compensated absences payable
Revenue Bonds
$8,445,000 $ - $785,000 $7,660,000
329,169 173,983 - 503,152
$8,774,169 $173,983 $785,000 $8,163,152
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 ill annual principal installments ranging
from $820,000 in fiscal 1997 to $1,105,000 in fiscal 2004. Interest accrues at 4.36% per annum.
Debt service requirements to amortize the revenue bonds as of September 30, 1996, are as
follows:
Fiscal Year
Principal Interest Total
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 975,000 159,903 1,134,903
2002-2004 3,180,000 211,896 3,391,896
$7,660,000 $1,410,460 $9,070,460
Bond Anticipation Notes
Changes in proprietary fund debt during the year are summarized as follows:
Bond anticipation notes
Balance
September 30,
1995
Payments
Balance
September 30,
1996
$7,200,000 $ $7,200,000
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 5. LONG-TERM DEBT
Proprietary Fund Debt
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 on April 1,
1997, including interest of $176,040.
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 $63,000 for fiscal year 1996.
The following is the commitment under the lease:
Fiscal Year
1997
$54,000
The Village, as of September 30, 1996, has outstanding construction commitments of
approximately $2.5 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, Rules of the Auditor
General of the State of Florida and grantor agencies. 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.
Risk Management
The Village is exposed to various risks of loss related to torts, theft of, damage to and
destruction of assets, errors and omissions and natural disasters for which the Village carries
commercial insurance.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7. RESERVED/DESIGNATED FUND BALANCE
As of September 30, 1996, fund balances in the general fund have been reserved or designated for
the following purposes:
Reserved Fund Balance
General fund:
Supplemental fire aid $ 112,095
Encumbrances 5,877
Beach improvements 24,355
Beautification of Crandon Boulevard 189,048
Recreation facilities 408,448
Grant audits 541,024
Community center 28,453
Beach park and walk 250,000
Compensated absences 146,227
Dade heritage trust 4,500
Subsequent year's budget 375,750
$2,085,777
Designated Fund Balance
General fund:
Police/fire equipment and building $ 73,298
Community grants, maintenance and improvements 60,154
Future personnel expense 264,375
Professional fees 87,138
$484,965
NOTE 8. CONTRIBUTED CAPITAL
A summary of changes in the enterprise fund's contributed capital for the fiscal year ended
September 30, 1996 follows:
Stormwater
Utility
System
Balance, September 30, 1995 $
Balance, September 30, 1995, as restated (see Note 11) 1,709,450
Grant contributions 916,681
Current general fund contributions 56,770
Balance, September 30, 1996 $2,682,901
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9 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, 1996 were $191,027.
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 10. DEFINED CONTRIBUTION PLAN
The Village of Key Biscayne is a single employer that contributes to the Village of Key Biscayne
Money Purchase Plans, which are defined contribution pension plans created in accordance with
Internal Revenue Code Section 401(a). The plan currently covers all full-time employees of the
Village. Under these plans, the Village contributes 11% and the employee contributes 6% or 14%.
Employer contributions for fiscal year ended September 30, 1996 were $335,676 while the
employee contributions were $175,984.
A defined contribution pension plan provides pension benefits in return for services rendered,
provides an individual account for each participant and specifies how contributions to the
individual's account are to be determined instead of specifying the amount of benefits the
individual is to receive.
Under a defined contribution pension plan, the benefits a participant 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 may be allocated to such
participants' account.
The Village's total payroll and covered payroll for fiscal year 1996 was $3,639,310.
The Money Purchase Plans held no securities of the Village or related parties during the year or as
of September 30, 1996.
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11. RECLASSIFICATION OF TRANSFER
In fiscal year 1995, the Village transferred $1,709,450 from the general fund to the stormwater
utility fund (an enterprise fund). This was reported as an operating transfer but would be more
properly classified as an equity transfer to contributed capital. Therefore, the following adjustment
was necessary to reclassify the transfer from retained earnings to contributed capital of the
stormwater utility fund.
Retained earnings, September 30, 1995 $2,403,437
Reclassification of transfer 1,709,450
Retained earnings, September 30, 1995, as restated $ 693,987
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COMBINING, INDIVIDUAL FUND
AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
GENERAL FUND
The general fund is the principal operating fund of the Village and is used to account for resources
traditionally associated with governments which are not required to be accounted for in another fund.
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
COMPARATIVE BALANCE SHEETS
SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1995)
ASSETS
Cash and cash equivalents
Investments
Due from other governments
Due from other funds
Accounts receivable
Interest receivable
Total assets
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable and accrued liabilities
Deposits and performance bonds
Deferred revenue
Deferred rent
Total liabilities
Fund balance:
Reserved for:
Supplemental fire aid
Encumbrances
Beach improvements
Beautification of Crandon Boulevard
Recreation facilities
Grant audits
Community center
Beach park and walk
Compensated absences
Dade heritage trust
Subsequent year's budget
Unreserved:
Designated for:
Police/fire equipment and building
Community grants, maintenance and improvements
Future personnel expense
Professional fees
Unreserved, undesignated
Total fund balance
Total liabilities and fund balance
1996
1995
$ 1,728,672 $ 1,876,035
2,000,000 1,000,000
111,250 82,657
171,233
87,607 59,853
40,986
$ 3,968,515 $ 3,189,778
$ 327,921
25,600
106,309
459,830
112,095
5,877
24,355
189,048
408,448
541,024
28,453
250,000
146,227
4,500
375,750
$ 341,645
25,330
106,309
13,746
487,030
106,000
9,482
23,027
179,412
559,562
541,024
2,085,777 1,418,507
73,298
60,154
264,375
87,138
89,101
125,029
250,000
66,238
484,965 530,368
937,943 753,873
3,508,685 2,702,748
$ 3,968,515 $ 3,189,778
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30, 1996
Budgetary Variance
Basis Favorable
Budget Actual (Unfavorable)
Revenues:
Property taxes $ 6,380,520 $ 6,486,019 $ 105,499
Utility taxes 1,295,800 1,294,486 (1,314)
Franchise fees 678,500 638,096 (40,404)
Intergovernmental:
State shared revenue 728,500 790,403 61,903
Licenses and permits:
Occupational licenses
Building permits
Charges for services
30,000 36,810 6,810
375,000 393,398 18,398
405,000 430,208 25,208
54.500 168,800 114,300
Other:
Donations 277,856 277,856
Miscellaneous 2,544 2,544
280,400 280,400
Interest
Grants:
Hurricane loss grant revenue
Other grants
150,000 280,570 130,570
28,900
28,900
267,682
779,639
267,682
750,739
1,047,321 1,018,421
Total revenue $ 9,721,720 $ 11,416,303 $ 1,694,583
(Continued)
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1996
Budgetary Variance
Basis Favorable
Budget Actual (Unfavorable)
Expenditures:
General government:
Elected officials $ 10,000 $ 12,022 $ (2,022)
Administration 347,554 325,076 22,478
Village clerk 116,066 116,781 (715)
Village attorney 178,000 151,834 26,166
Total general government 651.620 605.713 45,907
Public works 491,869 544,965 (53,096)
Building, zoning and planning 532,494 593.635 (61,141)
Parks and recreation 239.821 237.775 2.046
Public safety 4.916,023 4.821,253 94.770
Non -departmental 711.968 425.256 286.712
Debt service:
Principal 785,000 785,000
Interest 351,089 351,089
1,136,089 1.136,089
Total expenditures 8,679,884 8.364,686 315,198
Transfers out 1,041,836 1,863.620 (821,784)
Total expenditures and transfers $ 9,721,720 $ 10,228,306 $ (506,586)
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.
• 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 SHEETS
SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1995)
Stormwater Solid
Utility Waste Totals
System Fund 1996 1995
ASSETS
Current assets:
Cash and cash equivalents $ 1,179,474 $ 47,620 $ 1,227,094 $ 3,811,881
Investments 4,291,789 - 4,291,789 5,104,000
Due from other governments 89,677 89,677
Accounts receivable 91,830 - 91,830 44.649
Interest receivable 141,761 141,761 158,206
Total current assets 5,794,531 47,620 5,842,151 9,118,736
Fixed assets 5,784,160 5,784,160 1,263,487
Total assets $ 11,578,691 $ 47,620 $ 11,626,311 $ 10,382,223
LIABILITIES AND FUND EQUITY
Current liabilities:
Accounts payable and accrued liabilities
Due to other funds
Bond anticipation notes
Total current liabilities
$ 484,462 $
7,200,000
7,684,462
$ 484,462 $ 621,582
- 157,204
7,200,000
7,684,462 778,786
Long-term debt:
Bond anticipation notes 7,200,000
Total liabilities 7,684,462 7,684,462 7,978,786
Fund equity:
Contributed capital
Retained earnings
Total fund equity
2,682,901
1,211,328
47,620
2,682,901
1,258,948
1,709,450
693,987
3,894,229 47,620 3,941,849 2.403,437
Total liabilities and fund equity $ 11,578,691 $ 47,620 $ 11,626,311 $ 10,382,223
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN
RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1995)
Stormwater Solid
Utility Waste Totals
System Fund 1996 1995
Operating revenue $ 456,515 $ 241,491 $ 698,006 $ 617,999
Operating expenses:
General and administrative costs 32,371 212,610 244,981 165,463
Operating income 424,144 28,881 453,025 452,536
Non -operating revenue (expense):
Interest income 442,006 13,691 455,697 221,023
Interest expense (352,080) (352,080) (163,326)
Intergovernmental 8,319 8,319
Total non -operating revenues 89,926 22,010 111,936 57,697
Income before transfers 514,070 50,891 564,961 510,233
Transfers in 1,709,450
Net income 514.070 50,891 564,961 2,219,683
Retained earnings (deficit), beginning 2,406,708 (3,271) 2,403,437 183,754
Reclassification of transfer (1,709,450) - (1,709,450)
Retained earnings (deficit), beginning, as restated 697,258 (3,271) 693,987 183,754
Retained earnings, ending $ 1,211,328 $ 47,620 $ 1,258,948 $ 2,403,437
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FISCAL YEAR ENDED SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30, 1995)
Stormwater Solid
Utility Waste Totals
System Fund 1996 1995
Cash flows from operating activities:
Operating income $ 424,144 $ 28,881 $ 453,025 $ 452,536
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
(Increase) decrease in:
Accounts receivable
Interest receivable
Due from other governments
Increase (decrease) in:
Accounts payable
Due to other funds
Total adjustments
Net cash provided (used) by operating activities
Cash flows from non -capital financing activities:
Transfers in
Net cash provided by non -capital
financing activities
(91,830) 44,649 (47,181) (44,649)
16,445 16,445 (158,206)
(89,677) (89,677)
(137,120) - (137,120) 621,582
(157,204) (157,204) 7,204
(302,182) (112,555) (414,737) 425,931
121,962 (83.674) 38,288 878,467
1,709,450
1,709,450
Cash flows from capital and relating financing activities:
Construction in progress (4,520,673) - (4,520,673) (929,733)
Proceeds from capital contributions 973,451 8,319 981,770 -
Proceeds from bond anticipation notes 7,200,000
Interest paid (352,080) (352,080) (163,326)
Net cash provided (used) by capital and
related financing activities (3,899,302) 8,319 (3,890,983) 6,106,941
Cash flows from investing activities:
Maturities (purchase) of investments
Interest received
Net cash provided (used) by investing activities
Net increase (decrease) in cash
Cash, beginning
Cash, ending
812,211 812,211 (5,104,000)
442,006 13,691 455,697 221,023
1,254,217 13,691 1,267,908 (4,882,977)
(2,523,123) (61,664) (2,584,787) 3,811,881
3,702,597 109,284 3,811,881
$ 1,179,474 $ 47,620 $ 1,227,094 $ 3,811.881
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 SHEETS
SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1995)
Deferred Defined
Compensation Contribution Totals
Plan Plan 1996 1995
ASSETS
Investments $ 558,989 $ 1,601,717 $ 2,160,706 $ 1,393,591
Participants' loans receivable
LIABILITIES
229.533 229,533 60,279
$ 558,989 $ 1,831,250 $ 2,390,239 $ 1,453,870
Deferred benefits payable $ 558,989 $ 1,831,250 $ 2,390,239 $ 1,453,870
VILLAGE OF KEY BISCAYNE, FLORIDA
AGENCY FUNDS
DEFERRED COMPENSATION PLAN
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED SEPTEMBER 30, 1996
Balance Balance
September 30, September 30,
1995 Additions Deletions 1996
ASSETS
Investments
LIABILITIES
$ 312.371 $ 258.585 $ 11.967 $ 558,989
Deferred benefits payable $ 312.371 $ 258,585. $ 11.967 $ 558,989
VILLAGE OF KEY BISCAYNE, FLORIDA
AGENCY FUNDS
DEFINED CONTRIBUTION PLAN
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED SEPTEMBER 30, 1996
Balance Balance
September 30, September 30,
1995 Additions Deletions 1996
ASSETS
Investments
Participants' loans receivable
LIABILITIES
$ 1,081,220 $ 640,323 $ 119,826 $ 1,601,717
60,279 228,455 59,201 229,533
$ 1,141,499 $ 868,778 $ 179,027 $ 1,831,250
Deferred benefits payable $ 1,141,499 $ 868,778 $ 179,027 $ 1,831,250
GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not accounted for in proprietary fund operations.
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE
SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1995)
1996 1995
General fixed assets:
Land $ 13,240,657 $ 9,240,657
Buildings 587,076 587,076
Improvements other than buildings 964,393 921,722
Furniture and fixtures 90,957 84,872
Equipment 2,217,514 2,061,892
Total general fixed assets $ 17,100,597 $ 12,896,219
Investment in general fixed assets by source:
General fund $ 13,100,597 $ 12,896,219
Donations 4,000,000
Total investment in general fixed assets $ 17,100,597 $ 12,896,219
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 1996
Improvements Furniture
Other Than and
Land Building Buildings Fixtures Equipment Total
General government $ 4,000,000 $ $ 11,299 $ 49,705 $ 200,818 $ 4,261,822
Parks and recreation 9,240,657 942,522 124,330 10,307,509
Public safety 587.076 10.572 41.252 1,892,366 2,531,266
$ 13.240,657 $ 587,076 $ 964,393 $ 90,957 $ 2,217,514 $ 17,100,597
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30, 1996
General government
Parks and recreation
Public safety
Balance
September 30,
1995 Additions
Balance
September 30,
Deletions 1996
$ 214,538 $ 4,047,284 $
10,269,173 38,336
2,412,508 125,464
$ 4,261,822
10,307,509
6,706 2,531,266
$ 12,896,219 $ 4,211,084 $ 6,706 $ 17,100.597
GENERAL LONG-TERM DEBT ACCOUNT GROUP
To account for the Village's unmatured principal and long -teen portion of compensated absences.
VILLAGE OF KEY BISCAYNE, FLORIDA
STATEMENT OF GENERAL LONG-TERM DEBT
SEPTEMBER 30, 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1995)
1996 1995
Amount to be provided for retirement of general long-term debt $ 8,163.152 i=,16.2
General long-term debt payable:
Revenue bonds payable
Compensated absences payable
$ 7,660,000 $ 8,445,000
503,152 329,169
Total general long-term debt payable $ 8.163.152 $ 8.774,169
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STATISTICAL SECTION
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
Fiscal General Public Parks and Public
Year Government Safety Recreation Works Total
1992 $ 1,468,000 (1) $ 13,511 $ 11,779 $ 86,580 $ 1,579,870
1993 2,848,857 (2) 2,790,379 240,794 185,257 6,065,287
1994 4,126,094 (3) 4,453,539 9,601,922 (4) 782,001 18,963,556
1995 5,524,305 (3) 4,294,606 211,159 573,844 10,603,914
1996 4,988,004 (3) 4,634,385 234,154 753,823 10,610,366
(1) Includes $783,280 hurricane related expenditures.
(2) Includes $1,251,264 hurricane related expenditures.
(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.
Note: The Village's first year of operation was fiscal year 1992.
Includes general fund only.
VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
Licenses
Fiscal Property and Inter- Utility Franchise
Year Taxes Permits governmental Taxes Fees Other Interest Total
1992 $ - $ 15,766 $ 934,018 $ 979,236 $151,392 $ 23,276 $ 4,480 $ 2,108,168
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 6,820,807 351,152 788,062 1,257,179 652,844 665,086 369,540 10,904,670
1996 6,486,019 430,208 791,403 1,294,486 638,096 1,495,521 280,570 11,416,303
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 Fiscal Assessed Tax Total Percent
Year') Year Value Levy Collected(2) 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
1995 1996 1,767,457,005 6,716,337 6,418,864 95.6
(1) 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
Net Assessed
Real Personal Property
Year Property 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
1996 1,837,939,078 23,304,054 1,861,243,132
Source: Dade County Property Appraisers Office
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Fiscal
Year
1992
1993
1994
1995
1996
Total
Permits
Issued
Residential Commercial
# of
Units Valuation
35 25
1,737 1,633
2,205 2,081
2,857 2,568
3,171 3,060
$ 638,483
26,822,424
25,410,312
33,820,503
65,318,655
# of
Units Valuation
10
104
124
289
111
$ 401,058
4,383,673
45,567,390
2,099,661
1,231,097
Total
of
Construction
(000s)
Omitted
Bank
Deposits (1)
$ 1,039,541 $ 20,282,998
31,206,097 18,146,647
70,977,702 17,524,140
35,920,164 17,938,762
66,549,752 14,561,654
(1) Federal Reserve Bank Atlanta, GA. Information is for Metropolitan Dade County, which the Village
of Key Biscayne is a part of. Information is not available for the Village of Key Biscayne alone.
Note: Village began issuing permits on September 1, 1992.
VILLAGE OF KEY BISCAYNE, FLORIDA
UTILITY TAX REVENUE BY SOURCE
Fiscal Telecommu- Fuel
Year Electricity nications 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
1996 888,651 199,746 37,034 3,885 165,169 1,294,485
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
1996 571,093 46,824 20,179 638,096
VILLAGE OF KEY BISCAYNE, FLORIDA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
Village of
Key Biscayne Dade County State School District
Debt Total Total Debt Total
Fiscal Village Operating Service County SFWMD FIND State Operating Service School
Year Millage Millage Millage Millagc Millage Millagc Millage Millage Millage Millage Other Total
1992 2.280 7.305 1.139 8.444 0.547 0.052 0.599 9.023 0.505 9.528 3.445 24.296
1993 4.439 7.305 0.830 8.135 0 597 0.052 0.649 9.283 0.640 9.923 1.101(1) 24.247
1994 4.101 7.253 0.817 8.070 0 497 0.049 0.546 9.503 0.842 10.345 0.443 23.505
1995 3.800 6.828 0.789 7.617 0.547 0.040 0.587 9.373 1.016 10.389 0.429 22.822
1996 3.606 6.469 0.774 7.243 0.572 0.038 0.610 9.356 1.010 10.366 0.439 22.264
(1) Village established its own fire district effective October 1, 1993
Source: Dade County Property Appraisers Office
-39-
VILLAGE OF KEY BISCAYNE, FLORIDA
RATIO OF NET BONDED DEBT
TO ASSESSED VALUE AND PER CAPITA
Net Ratio of Net Net Bonded
Fiscal Assessed Bonded Bonded Debt to Debt
Year Population Value (1) Debt (2) Assessed Value Per Capita
1994 8,887 $ 1,560,057,130 $ 9,200,000 0.59% $ 1,035
1995 8,894 1,741,921,584 8,445,000 0.48% 949
1996 8,886 1,767,457,005 7,660,000 0.43% 862
(1) Net bonded assessed actual value of taxable property
(2) 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 (1) 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
1996 785,000 351,089 1,136,089 10,610,366 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, 1996
% of
Total
Taxable Assessed
Taxpayer Valuation Valuation
Ocean Club Key Biscayne $ 61,042,161 3.28%
Grand Bay Hotel Residence 52,360,987 2.81
Sonesta Beach Hotel 29,564,921 1.59
Finivest Investment, Et. Al. (Key Colony) 9,079,424 .49
Key Biscayne Shopping Center 8,026,685 .43
Coldwell Banker 7,511,420 .40
Florida Power & Light 5,946,376 .32
Red Dragon Sands, Ltd. 5,535,159 .30
Galleria Mall 5,436,860 .29
Pic Pan, Inc. 5,003,719 .27
$ 189,507,712 10.18%
Source: Dade County Appraisers Office
VILLAGE OF KEY BISCAYNE, FLORIDA
DEMOGRAPHICS 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 14 8,854
Estimates of
Population
by Race
Analo Black Hispanic Total
1990 5,028 36 3,790 8,854
INCOME*
Per Capita Income
Average
Per
Analo Black Hispanic Capita
1990 $44,615 $ 24,577 $ 28,341 $ 37,629
UNEMPLOYMENT
RATES**
(Percent)
Dade County
Village of
Key Biscayne
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
5.8 5.3 6.3 7.0 8.8 10.0 7.7 7.9 6.8 7.8
* Source: Bureau of Census, Income Division
** Source: State Department of Labor
3.8 3.6 3.6 3.1 3.6
VILLAGE OF KEY BISCAYNE, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30, 1996
Date of Incorporation 1991
Form of Government Council -Manager
Area 1.2 Square Miles
Miles of Street 20.2 Linear Miles
Fire Protection:
Number of Stations 1
Police Protection:
Number of Stations 1
Education:
Elementary
Attendance Centers 1
Number of Students 505
Number of Teachers 33
Dade County Water & Sewer Authority
Number of Customers 1740
Average Daily Consumption 2,500,000 gallons
Sewers:
Number of Customers 807
Fire Hydrants 122
Building Permits Issued 3,171
Recreation and Culture:
Number of Parks
Number of Libraries
Number of Tennis Centers
Number of Recreational Centers
2
1 (Operated by Dade County)
1
1
Employees:
Full Time
82
SUPPLEMENTARY AUDITOR'S
REPORTS SECTION
RCH'
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS 8t CONSULTANTS
A Partnership including Prote,ionaI A�Suctattom
Report of Independent Certified Public Accountants on
Internal Control Structure Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 1996, and have issued our report thereon dated
December 5, 1996.
We conducted our audit in accordance with generally accepted auditing standards, 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.
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, 1996, 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 AN, enue, Tenth Floor, Miami, Florida 33131 • Dade (305) 377-4228 • Fax (305) 377-8331
700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida 33316 • Broward (954) 525-1040 • Fax 0(R4) 525-200.1
\1en,bcot nt Inter n,,tm ien Asolute Ink nithOIke,inl'imupa]CiIie Throukhoullh.Alnrld
tit, mber,d the Amum en Instil ,d( ertihul I'nhhr A m utants hni,inn her ' [C I'radhu tierhon and the I'rn ,'nni n tum
RCH
Honorable Mayor, Village Council and Village Manager
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 the schedule of findings
accompanying this report.
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.
emu.: e..-1... , ,Wre,,
Miami, Florida
December 5, 1996
-46-
RCH
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Including Processional As,,oC1ations
Report of Independent Certified Public Accountants on
Compliance with Laws and Regulations Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 1996, and have issued our report thereon dated
December 5, 1996.
We conducted our audit in accordance with generally accepted auditing standards, 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 financial statements are free of material
misstatements.
Compliance with laws, regulations, contracts, grants and 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
December 5, 1996
ge.4444_ # 2/11
-47-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33141 • Dade (305) 377-4228 • Fax (305) 377-8331
700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida 33316 • Broward (954) 525-1040 • Fax (954) 525-2004
\lember of summer Intern,Ition.11 \ iate, Im I'nnnpal ( the, I hrou„hint th, 6Aorld
\Iirnhur of the Amukan InOltute nt Ccrhhud I'ubhi 1,Lountanr, I)ii iron fur -L( I'ra.tiie',eLhon ind the I'm ak. Connei nn - I'r iu�r tie�hon
RCH
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Including Protessfonal Assouation,,
Management Letter in Accordance with the Rules of the
Auditor General of the State of Florida
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 1996, and have issued a report thereon dated December
5, 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, 1996, 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 inaccuracies, irregularities, shortages, defalcations or violations of laws, rules, regulations and
contractual provisions were reported in the preceding annual financial audit.
2. The Village, during fiscal year 1996, was not in a state of financial emergency as defined by Florida
Statutes 218.503(1).
3. The recommendation made in the preceding annual financial audit was not implemented. This
matter is reported in the prior year comments and recommendations section of the schedule of
findings accompanying this report.
4. Recommendations to improve the Village's present financial management and accounting
procedures are accompanying this report in the schedule of findings.
-48-
One Southeast Third Avenue, Tenth Floor, Miami, Florida 33131 • Dade (305) 377-4228 • Fax (305) 377-8331
700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida T131( • Broward (954) 525-1040 • Fax (954) 525-2004
11C111hsr in summit Internahnnal \,tointn In, wth Mks, in l'rnxipat We, tluou,ghou ihi l\orld
\It nibs rot the sAmcrusn In,ht ,tc of (erhhs d I'uhli, 11, ountant, flu 1,1011 tor ',F( Pr,u his' S1 Linn and thr I'm It, l o nouw, I'n, h,1 Ns inn
RCH
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
Page Two
5. During the course of our audit, nothing came to our attention that caused us to believe that the
Village:
a. Was in violation of any laws, rules or regulations.
b. Made any illegal or improper expenditures.
c. Had improper or inadequate accounting procedures, other than those noted in the schedule of
findings and questioned costs accompany this report.
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.
6. The annual financial report for the year ended September 30, 1996 has been filed with the
Department of Banking and Finance pursuant to Section 218.32 Florida Statutes and is in agreement
with the audited financial statements of the same period.
7. 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.
gt.eii444_ &.-4, ,- ,,gre
Miami, Florida
December 5, 1996
-49-
CERTIFIED PUBLIC ACCOUNTANTS & CONSL LTA\ FS
A Partnership including Protc tonal Ati,oct,ihom
Report of Independent Certified Public Accountants on
Schedule of Federal and State Financial Assistance
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 1996, and have issued our report thereon dated
December 5, 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 Village 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
December 5, 1996
-50-
One Southeast Third Av enue, Tenth Floor, Miami, Florida 33131 • Dade (305) 377-4228 • Fa\ 1305) 377-8331
700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida 33316 • Broward (954) 525-1040 • Fa\ (954) 525-2004
Member of Sununu Inhrnannnal ith olhn, in I'nn,ipal ( the, Ihroughout thr llorld
Ucn•hi rot thr liner, In,uhdc of ( urtinud I'ul n A,ountant, l)n i,iun for nLC Prartke Sertion and the I'm nle t ennui r 1'i uh, e tinhon
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE
FISCAL YEAR ENDED SEPTEMBER 30, 1996
Federal Grantor/Pass-Through
Grantor Program Title
Federal -Major Programs:
U.S. Department of Commerce- Economic Development
Administration
Federal-Nonmajor Programs:
U.S. Small Business Administration
Pass -through Florida Department of Agriculture and
Consumer Services -1994 SBA National Small
Business Grant
U.S. Department of Justice:
COPS FAST
COPS MORE
Pass -through Florida Bureau of Justice Assistance,
Community Drug and Crime Prevention Program
Total federal financial assistance expended
State Programs:
CFDA Grant/Contract No. Expenditures
11.300 93-80-1969 $750,000
N/A SBA -28-2666 34,930(1)
16.710 95-CF-WX-5895 20,497(2)
N/A 96-CM-WX-0980 8,095
16.579 96-CJ3S112301091 4.400(3)
817.922
Florida Department of Community Affairs:
Hurricane Andrew Recovery and Rebuilding
Trust Fund 95ED-3M11-23-02-078 - (4)
Florida Communities Trust 94-040-P4A - (5)
Florida Department of Environmental
Protection -Recycling and Education Grant
Florida Department of Health and Rehabilitative Services -
Office of Emergency Medical Services -Pass -through
Metro -Dade County -EMS County Grant
Total state financial assistance expended
Total federal and state financial assistance expended
RE96-11 8,319
C-9513
7,230
15,549
$833,471
(1) Expenditures do not include local match of $34,930
(2) Expenditures do not include local match of $18,379
(3) Expenditures do not include local match of $4,905
(4) Grant was for recovery of lost revenues - Grant receipts for FY 96 were $267,682
(5) Expenditures incurred in FY 94. Grant award to subsidize expenditures received in FY 96 was $699,082
RCH
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS & CONSLLTA\TS
A Partner,hlp Including Prote5,tonal hnns
Report of Independent Certified Public Accountants on the Internal Control
Structure used In Administering Federal Financial Assistance Programs
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 1996, and have issued our report thereon dated
December 5, 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 December 5, 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 Village
complied with laws and regulations, noncompliance with which would be material to a major federal
financial assistance program.
In planning and performing our audit for the year ended September 30, 1996, 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 federal financial assistance programs and to report on the internal
control structure in accordance with OMB Circular A-128. This report addresses our consideration of
internal control structure policies and procedures relevant to compliance with requirements applicable to
federal financial assistance programs. We have addressed internal control structure policies and procedures
relevant to our audit of the general purpose financial statements in a separate report dated December 5,
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 005) 377-4225 • Fax 005) 377-8331
700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida 33316 • Bron and (954) 525-1040 • Fax (954) 525-2004
\lemhr rot Summd Intrrnal!on d \,,,k, idles In, n ith Otiktnk in I'nmiprl ( me, I ernuph,'u[ for lL.rld
\Iemhsr Amnn,an In,t,ti,4 et( erhm d P lie A ,nuntont, I)n-Non lot '4h I'taihu Ostinn end the I'm eL (nmp Ink Pr hu ',Inn,
RCH
Honorable Mayor, Village Council and Village Manager
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 Receipts and Disbursements.
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, 1996, 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-
RCH
Honorable Mayor, Village Council and Village Manager
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
December 5, 1996
daziez‘c &z.,, v, A/cl
-54-
RCH
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership including Frufes,,tonal A Souattom
Report of Independent Certified Public Accountants on Compliance with
General Requirements Applicable to Federal Financial Assistance Programs
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 1996, and have issued our report thereon dated
December 5, 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, 1996; political activity, Davis -Bacon Act, civil
rights, cash management, federal financial reports, allowable costs/cost principles, 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
December 5, 1996
ecteid6;c. 2,4/*
-55-
One Southeast Third enue, Tenth Floor, Miami, Florida 33131 • Dade (305) 377-4228 • Fax (3(15) 377-8331
700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida 33316 • Broward (954) R25-1040 • Fax (954) 525-2004
\Itmhtr,d kt[ iund Imtrnauona] Akueial« Ini nOh chth , in Prmcpal (Inc, Throughout Heed
�mb� r tire lawman Inuduti et C,rhhed I'uhhr Leountanr, hn Hon tor ',EC I'ral Liken and the Prn mu ( limp 'ii Tie- Pr etni ,alma
Rachlin
Cohen &
Holtz
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partner,hip Including Prote55tonal ASsuuahon,
Report of Independent Certified Public Accountants on Compliance with
Specific Requirements Applicable to Major Financial Assistance Programs
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 1996, and have issued our report thereon dated
December 5, 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, 1996. 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, 1996.
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
December 5, 1996
Wetei 44c: ?vice„_v- /744,
-56-
One Southeast Third Avenue, 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 (954) 525-1040 • Fax (954) 525-200.1
\1emh.nd Summit 10,1 -national \,tttlate, In,r nithOttm, in Primp! C tie, 1l -oughtn't h� ILnrhl
\Inn tat of tilt Amrnran IntitnL ni ( ['titan, Amountant, DR i nn for N ( I'rartiu xtuon and the Pm ail ( ompii i, Pi nuns'notion
CERTIFIED PUBLIC ACCOUNTANTS & CONSCLTANTS
A Partnership Including Protesional A ociation,
Report of Independent Certified Public Accountants on
Compliance with Specific Requirements Applicable to
NonMaior Federal Financial Assistance Program Transactions
Honorable Mayor, Village Council and Village Manager
Village of Key Biscayne, Florida
We have audited the general purpose financial statements of the Village of Key Biscayne, Florida (the
Village) as of and for the year ended September 30, 1996, and have issued our report thereon dated
December 5, 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, 1996. 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.
Miami, Florida
December 5, 1996
-57-
One Southeast Third A enue, Tenth Floor, Miami, Florida 33131 • Dade (305) 377-4228 • Fa\ (305) 377-8331
700 Southeast Third Avenue, Third Floor, Ft Lauderdale, Florida 33316 • Brovtiard (954) 525-1040 • Fav (954) 525-2004
\iemh, r or tiummit International 1,0, lab., In, nub OUR, in I'riml1 al ( itii, Throughout th, 11arl,1
Vk nhr at tin Amenoan hntitute at l urtitied I'ubh, l000unnutt, Itn nun tar nFl ['ra,ti,e timhon and the I'rnato io i.o urotiun
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30, 1996
I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS
Other Matters
1. Condition
Through our review of current insurance policies, we noted that the Village maintains $25,000
of public employee blanket bond insurance.
Recommendation
We recommend that the Village increase its coverage of public employee blanket bond
insurance.
2. Condition
During our audit fieldwork, we noted that the final accounting and reporting for general fixed
assets account group, general long-term debt account group, the deferred compensation and
defined contribution agency funds was not completed.
Recommendation
In order to maintain an efficient audit process, we recommend that the Village prepare the final
accounting and reporting for all funds and account groups, prior to the commencement of audit
fieldwork.
3. Condition
The Village currently capitalizes all fixed assets with a value greater than $200. Therefore,
many insignificant assets are capitalized as fixed assets.
Recommendation
We recommend that the Village increase its capitalization threshold to $500, thereby creating
stronger controls over the more significant fixed assets.
-58-
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30, 1996
4. Condition
During our testing of cash, we noted that the bank reconciliation of the operating account as of
September 30, 1996 did not include the cash management account portion necessary to
reconcile the bank balances to the general ledger balance. The risk of not adequately preparing
bank reconciliations is that errors made by the bank or the Village would not be noticed. In
addition, we noted that the outstanding checklist included checks greater than six months old
that had not been presented for payment.
Recommendation
We recommend that monthly bank reconciliations be prepared that includes the cash
management account portion in order to properly reconcile the bank balances to the general
ledger balance. We also recommend that the Village establish a policy to write-off checks
outstanding greater than six months.
II. 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.
Management's 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.
-59-