HomeMy Public PortalAboutComprehensive Annual Financial Report Fiscal Year Ended 09-30-92.tifLJ
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COMPREHENSIVE
ANNUAL FINANCIAL
REPORT
of the
Village of Key Biscayne, Florida
for the
Fiscal Year Ended
September 30, 1992
Prepared by
The Finance Department
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VILLAGE OF KEY BISCAYNE, FLORIDA
COUNCIL - MANAGER FORM OF GOVERNMENT
VILLAGE COUNCIL
Rafael Conte Mayor
Michael Hill Councilman
Betty Q Sime Councilwoman
Cliff Brody Councilman
Ray Sullhvan Vice -Mayor
Joe Rasco Councilman
Mortimer Fried Councilman
VILLAGE MANAGER
C Samuel Kissinger
VILLAGE ATTORNEY
Weiss Serota & Helfman
FINANCE DIRECTOR
Jack Neustadt
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Rachhn & Cohen
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VILLAGE OF KEY BISCAYNE FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30 1992
TABLE OF CONTENTS
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PAGE
I INTRODUCTORY SECTION
Letter of Transmittal 1-6
Village of Key Biscayne Organization Chart 7
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II FINANCIAL SECTION
INDEPENDENT AUDITOR S REPORT 9
GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS OVERVIEW)
Combined Balance Sheet All Fund Types and Account Groups 11
Statement of Revenues Expenditures and Changes in
Fund Balance General Fund 12
Statement of Revenue Expenditures and Changes in
Fund Balance Budget and Actual General Fund 13
Index to Notes to Financial Statements 15
Notes to Financial Statements 17 24
COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND
SCHEDULES
GENERAL FUND
Balance Sheet
Schedule of Revenues and Expenditures Budget and Actual
(Supplemental Data)
25
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FIDUCIARY FUND
Statement of Changes in Assets and Liabilities Agency Fund 29
ACCOUNT GROUP
GENERAL FIXED ASSETS ACCOUNT GROUP
Schedule of General Fixed Assets By Source
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VILLAGE OF KEY BISCAYNE FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30 1992
TABLE OF CONTENTS (CONTINUED)
PAGE
III STATISTICAL TABLES (SUPPLEMENTAL DATA)
Comments on the Statistical Tables 33
General Government Expenditures by Function 35
General Revenues By Source 36
Assessed and Estimated Actual Value of All Taxable Property 37
Property Values Construction and Bank Deposits 38
Utilities Service Tax Revenue By Source 39
Franchise Revenue By Source 40
Interest Revenue By Source 41
Principal Taxpayers 42
Demographic Statistics 43
Miscellaneous Statistical Data 44
IV SUPPLEMENTARY AUDITOR S REPORTS SECTION
Independent Auditor s Report on Internal Control Structure
Based on an Audit of General Purpose Financial Statements
Performed in Accordance With Government Auditing Standards
Independent Auditor s Report on Compliance Based on an Audit of
General Purpose Financial Statements Performed in Accordance
With Government Auditing Standards
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Introductory Section
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Department of Finance
Mayor
Rafael Conte
Vice Mayor
Clifford Brody
Village Council
Mortimer Fned
Michael Hill
Joe Rasco
Betty Sime
Raymond P Sullivan
Honorable Mayor and Village Council
Village of Key Biscayne Florida
The Comprehensive Annual Financial Report of the Village of Key Biscayne for the
fiscal year ended September 30 1992 is hereby submitted Responsibility for
both the accuracy of the data and the completeness and fairness of the presentation
including all disclosures rests with the Village To the best of our knowledge
and belief the enclosed data are accurate in all material respects and are reported
in a manner designed to present fairly the financial position and results of
operations of the various funds and account groups of the Village All disclosures
necessary to enable the reader to gain an understanding of the Village s financial
activities have been included
7 The comprehensive annual financial report is presented in four sections The
introductory section includes this transmittal letter the Village s organizational
chart and a list of principal officials The financial section includes the
auditor s report on the financial statements and the individual fund and account
Ti group financial statements and schedules The statistical section includes selected
financial and demographic information The fourth section contains the Report
on Internal Control Structure and the Report on Compliance with Laws and Regulations
submitted by our auditors
Government Structure
0-1 The Village of Key Biscayne was incorporated on June 18 1991 and operates under
�J a Council Manager form of government The Village Council is comprised of the
Mayor and six members and is responsible for enacting ordinances resolutions and
regulations governing the Village as well as appointing the members of various
advisory boards the Village Manager Village Attorney and Village Clerk As Chief
Administrative Officer the Village Manager is responsible for enforcement of laws
and ordinances and appoints and supervises the department heads of the Village
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ECONOMIC CONDITIONS AND OUTLOOK
General Information
LOCATION
Key Biscayne is a barrier island situated between the Atlantic Ocean to the east
and Biscayne Bay to the west The island is located just south of Virginia Key
a separate island connected to the mainland south of downtown Miami by the
Rickenbacker Causeway The 1990 U S Census population was 8 854 and another 4 000
reside on the island seasonally
85 West McIntyre Street Key Biscayne Florida 33149 (305) 365-8903 Fax (305) 365 5556
MISSION STATEMENT TO PROVIDEA SAFE QUALITY COMMUNITY ENVIRONMENT FORALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT
1
The Village an incorporated municipality of approximately 1 25 square miles is
located on the Island of Key Biscayne and is bordered to the north by Crandon Park
a 960 acre county park administered by Dade County and to the south by Bill Baggs
Cape Florida State Recreation Area a park of approximately 600 acres
DISLOCATION EVENT AND ITS IMPACT
On Monday August 24th Hurricane Andrew paid a visit to Key Biscayne making an
impact that will be felt for decades Water caused flooding of homes schools
businesses hotel streets and landscaping Wind did additional damage to structure
and vegetation
MAJOR INITIATIVES
During this initial year of incorporation most services were provided by Dade
County Property taxes for the year were assessed collected and retained by
Dade County
The Village has advised Dade County as provided in the interlocal agreement with
the County that the Village Police Department will be activated as of March 1
1993
The Village council adopted the General Fund budget on September 29 1992 and
also established a stormwater utility fund
FINANCIAL INFORMATION
Accounting System, Internal and Budgetary Control
The Village s accounting records for governmental funds operations are maintained
on a modified accrual basis with revenues being recorded when available and
measurable and expenditures being recorded when the services or goods are received
and the liabilities are incurred
Budgetary control is maintained at the fund level Expenditures that could result
in an overextended balance are not released until additional appropriations are
made available
Internal accounting controls have been designed to provide reasonable but not
absolute assurance regarding safeguarding of assets against loss from unauthorized
use or disposition and the reliability of financial records for preparing financial
statements and maintaining accountability The concept of reasonable assurance
recognizes that the cost of control should not exceed the benefits likely to be
derived and the evaluation of costs and benefits requires estimates and judgment
by management
All internal control evaluations occur within the above framework We believe
the City s internal accounting controls adequately safeguard assets and provide
reasonable assurance of proper recording of financial transactions
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Reportinz Entity and its Services
The City includes for financial reporting purposes in conformance with NCGA
Statement 3 all funds and account groups that are controlled by or dependent upon
the Village Council
The Village currently provides the following services for its citizens
Public Safety (fire protection provided by Dade County)
Police (by March 1 1993) Planning and Zoning Building
Permits Public Works Parks and Recreation facilities
Development General and Administrative services
Reporting Standards
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The form and content of the Comprehensive Annual Financial Report and the
accompanying financial statements and statistical tables were prepared in conformance
with standards set forth by
1 Governmental Accounting Standards Board (GASB)
2 Financial Accounting Standards Board (FASB)
3 National Council on Governmental Accounting (NCGA)
4 The Auditor General State of Florida
5 The Charter of the Village of Key Biscayne
6 The Government Finance Officers Association of the United States and Canada
General Government Functions
The General Fund is the general operating fund of the Village General tax revenues
and other receipts that are not 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 paid through other funds are paid from
this fund
The amount of revenues from various sources and their percent to total are shown
in the following schedule
Revenues
Revenue Sources
Percent
Amount of Total
Fees and Licenses $ 15 766 8%
Intergovernmental 60 738 3 0%
Utility Taxes 979 236 48 5%
Franchise Fees 151 392 7 5%
Other 23 276 1 1%
FEMA 783 280 38 9%
Interest 4.480 2%
Total S2.018,168 100 0%
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The intergovernmental revenue source represents state shared revenues for which
the Village qualified as of July 1 1992
Expenditures
Percent
Function
Amount of Total
General Government $ 484 051 30 6%
Public Works 86 580 5 5%
Community Development 45 408 2 9%
Parks & Recreation 11 779 8%
Public Safety 13 511 9%
Disaster Relief (Hurricane) 783 280 49 6%
Non Departmental 90 000 5 7%
Capital Outlay 65.261 4 0%
Total .21,579,870 100 0%
Fiduciary Funds
Fiduciary Funds are Trust and Agency Funds established for the purpose of accounting
for assets held in a trustee capacity or as an agent for individuals private
organizations and other governments As of September 30 1992 the following were
recorded as Fiduciary Funds
Deferred Compensation
The Deferred Compensation Fund accounts for certain deferred compensation plans
offered by the City for its employees These plans were created in accordance
with Internal Revenue Codes §457 and §401 The plans managed by independent plan
administrators permit employees to defer a portion of their salary until future
years The Deferred Compensation fund had $4 113 in investments for the fiscal
year ended September 30 1992
Cash Management
The Village had two cash management vehicles in this first fiscal year an investment
account or money market account in the Key Biscayne Bank under an agreement which
provides for overnight investments of both the investment account and the operating
account
In addition the Village has an investment account with the Florida Local Government
Trust Fund administered by the State Board of Administration which was modest
as of September 10 1992 It is anticipated that this will be the primary cash
management vehicle for surplus funds in the future
Department Administration
The Village established a one million dollar line of credit with the Key Biscayne
Bank The Village on September 22 1992 borrowed $250 000 against that Credit
Line to pay contractors hired to remove debris caused by Hurricane Andrew This
loan remained outstanding at the close of the Fiscal Year and was repaid on October
23 1992
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Risk Management
The village is insured with the Florida Municipal Insurance Trust for liability
and property coverages and with the Florida Municipal Self Insurance Fund for
Workers Compensation coverage The liability limit under the policy is $5 000 000
Enterprise Funds
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Enterprise Funds are established to finance and account for the acquisition
operation and maintenance of facilities and services and the cost of providing
these goods and services on a continuing basis is financed through the collection
of charges from users
For the 1992 93 Fiscal Year the Village Council established a budget for the
Stormwater Management Utility Fund The Village is in the process of hiring an
engineering firm to design and prepare plans for the Stormwater Management System
General Fixed Assets
The general fixed assets of the Village are those assets used in the performance
of general governmental functions In accordance with generally accepted accounting
principles for local governments the Village does not record depreciation on general
fixed assets nor does it record roads bridges curbs and gutters streets and
sidewalks drainage systems and similar assets that are immovable and of value
only to the Village Assets are recorded at cost except donations which are recorded
at fair market value at the date of receipt As of September 30 1992 the general
fixed assets acquired amount to $65 261
Independent Audits
Provisions in the State Statutes require an annual audit of the books of account
financial records and transactions of all administrative departments of the Village
by independent Certified Public Accountants This requirement has been complied
with and the auditor s report has been included in this report
Certificate of Achievement for Excellence in
Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA)
awards a Certificate of Achievement for Excellence in Financial Reporting The
Certificate of Achievement is the highest form of recognition for excellence in
state and local government financial reporting In order to be awarded a Certificate
of Achievement a government unit must publish an easily readable and efficiently
organized Comprehensive Annual Financial Report whose contents conform to program
standards Such reports must satisfy both generally accepted accounting principles
and applicable legal requirements We believe our current report conforms to the
Certificate of Achievement Program requirements and we are submitting it to GFOA
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Acknowledgements
The preparation of this report could not have been accomplished without the efficient
and dedicated services of the staff of the Village
We express our appreciation to all members of the Staff who assisted and contributed
to the preparation of this report A special vote of thanks and appreciation is
also extended to- the firm of Rachlin & Cohen for their professional approach and
high standards in the conduct of their independent audit of the City s financial
records and transactions
MORI
Respectfully submitted
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Village Manager
C Samuel Kissin E.
59„givs*tr" C
lack Neustadt
Finance Director
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CLERK
VILLAGE OF KEY BISCAYNE, FLORIDA
ORGANIZATIONAL CHART
VILT,AGN COUNCU,
VILLAGE
MAYOR
VXLX,AGE MANAGER
ATTORNEY
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GENERAL GOVERNMENT
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OMMUNITY DEVELOPMENT
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Financial Section
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INDEPENDENT AUDITOR'S REPORT
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RACHLIN & COHEN
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A PARTNERBH1 Pao EBB °NAL Asso¢Vn Ns
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1320 SOUTH DIXIE HIGHWAY
PENTHOUSE
CORAL GABLES FLORIDA 33146-2964
TELEPHONES DADE (305) 667 0412
BROWARD (305) 764-7717
Fax (305) 665 7456
Independent Auditor s Report
To the Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
700 SOUTHEAST THIRD AVENUE
SUITE 400
FT LAUDERDALE FLORIDA 33316 1102
TELEPHONES BROWARD (305) 764-7717
DADE (305) 667 0412
Fax (305) 764-7835
We have audited the general purpose financial statements of the Village of Key
Biscayne Florida as of September 30 1992 and for the year then ended as listed
in the table of contents These financial statements are the responsibility of
the Village s management Our responsibility is to express an opinion on these
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 financial statements are free of material
misstatement An audit includes examining on a test basis evidence supporting
the amounts and disclosures in the financial statements An audit also includes
assessing the accounting principles used and significant estimates made by
management as well as evaluating the overall financial statement presentation
We believe that our audit provides a reasonable basis for our opinion
In our opinion the general purpose financial statements referred to above present
fairly in all material respects the financial position of the Village of Key
Biscayne Florida at September 30 1992 and the results of its operations for
the year then ended in conformity with generally accepted accounting principles
Our audit was conducted for the purpose of forming an opinion on the general purpose
financial statements taken as a whole The individual fund and account group
financial statements for the year ended September 30 1992 and the 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 of the
Village of Key Biscayne Florida Such information has been subjected to auditing
procedures that were applied in the audit of the general purpose financial statements
and in our opinion is fairly presented in all material respects in relation to
the general purpose financial statements taken as a whole
The information shown in the statistical section listed in the table of contents
has not been subjected to the auditing procedure applied in the audit of the general
purpose financial statements and accordingly we express no opinion thereon
Coral Gables Florida
December 11 1992
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MEMBER OF SUMMIT INTERNATIONAL ASSOCIATES, INC WITH OFFICES LN PRINCIPAL CITIES THROUGHOUT THE WORLD
MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRIVATE COMPANIES PRACTICE SECTION
MEMBER OF THE FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
VILLAGE OF KEY BISCAYNE FLORIDA
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
90+
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ASSETS
Cash
Investments At Market
GOVERNMENTAL FIDUCIARY
FUND TYPE FUND TYPE
GENERAL AGENCY
$ 114 297
Due From FEMA Net of Allowance
For Disallowed Claims of $90 000 1 887 674
Utility Deposit
General Fixed Assets
Total Assets
LIABILITIES, FUND BALANCE AND
OTHER CREDITS
LIABILITIES
Accounts Payable and Accrued
Expenses
Note Payable
Deferred FEMA
Deferred Rent
Deferred Benefits Payable
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p2,002,021
$ 106 199
Short Term 250 000
Revenue 1 194 394
13 130
Total Liabilities 1.563.723
FUND BALANCE AND OTHER CREDITS
Investment in General Fixed
Assets
Fund balance
Reserved For Beach Restricted
Fund
Unreserved and Undesignated
20 237
418.061
Total Fund Balance and Other
Credits 438,298
Total Liabilities Fund Balance
and Other Credits $2,002,021
4 113
ACCOUNT
GROUP
GENERAL
FIXED ASSETS
65,261
4,113 $ 65,261
4,113
4,113
65 261
65,261
TOTALS
(MEMORANDUM
ONLY)
SEPTEMBER 30
1992
$ 114 297
4 113
1 887 674
50
65,261
X52,071.395
$ 106 199
250 000
1 194 394
13 130
4,113
1,567,836
65 261
20 237
418,061
503,559
4.113 p 65,261 12,071,395
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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VILLAGE OF KEY BISCAYNE FLORIDA
STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30 1992
GOVERNMENTAL
FUND TYPE
GENERAL
REVENUES
Utility Taxes $ 979 236
Franchise Fees 151 392
Intergovernmental 60 738
Licenses and Permits 15 766
Other 23 276
Interest 4 480
FEMA 783,280
Total Revenues 2.018,168
EXPENDITURES
Current
General Government 484 051
Public Works 86 580
Community Development 45 408
Parks and Recreation 11 779
Public Safety 13 511
Hurricane 783 280
Non Departmental 90 000
Capital Outlay 65.261
Total Expenditures 1.579.870
EXCESS REVENUE OVER EXPENDITURES 438 298
FUND BALANCE OCTOBER 1 1991
FUND BALANCE SEPTEMBER 30 1992 $ 438,298
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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VILLAGE OF KEY BISCAYNE FLORIDA
STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30 1992
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BUDGET
VARIANCE
FAVORABLE
ACUAL (UNFAVORABLE)
REVENUES
Utility Taxes $ 800 000 $ 979 236 $179 236
Franchise Fees 151 392 151 392
Intergovernmental 1 024 700 60 738 (963 962)
Licenses and Permits 15 766 15 766
Other 23 276 23 276
Interest 4 480 4 480
FEMA 783.280 783.280
Total Revenues 1.824,700
EXPENDITURES
Current
General Government
Public Works
Community Development
Parks and Recreation
Public Safety
Hurricane
Non Departmental
Capital Outlay
696 200
108 000
143 000
165 000
627 000
85.500
Total Expenditures 1,824.700
EXCESS REVENUES OVER EXPENDITURES
2.018.168 193.468
484 051
86 580
45 408
11 779
13 511
783 280
90 000
65.261
1.579,870
212 149
21 420
97 592
153 221
613 489
(783 280)
( 90 000)
20,239
244,830
438 298 X438,298
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1992
PAGE
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
( 1) Financial Reporting Entity 17
( 2) Basis of Presentation Fund Accounting 18
( 3) Financial Statement Measurement Focus 18
( 4) Basis of Accounting 19
( 5) Budgets And Budgetary Accounting 20
( 6) Memorandum Only Total Columns 20
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NOTE B DEPOSITS AND INVESTMENTS 21
NOTE C FIXED ASSETS 21
NOTE D NOTE PAYABLE SHORT TERM Y1
NOTE E - LITIGATION COMMITMENTS AND SUBSEQUENT EVENT 22
NOTE F DEFERRED COMPENSATION PLAN 23
NOTE G DEFINED CONTRIBUTION PLAN 23
NOTE H POST EMPLOYMENT BENEFITS 23
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1992
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A SflOtARY 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 financial statements
and other data in this report The policies are considered essential and should
be read in conjunction with the accompanying financial statements
The accounting policies of the Village of Key Biscayne conform to generally
accepted accounting principles (GAAP) as applied to governmental units This
report the accounting systems and classification of accounts conform to
standards of the Governmental Accounting Standards Board (GASB) and the
Government Finance Officers Association of the United States and Canada (GFOA)
which is the accepted standard setting body for establishing governmental
accounting and financial reporting principles Accounting treatment and the
financial statements also incorporate current recommendations of the National
Committee on Governmental Accounting and auditing standards of the American
Institute of Certified Public Accountants included in the Industry Audit Guide
"Audits of State and Local Governmental Units"
1 Financial Reporting Entity
The Village of Key Biscayne (Village) located in Dade County is a political
subdivision of the State of Florida
The Village which was incorporated in 1991 operates under a Council Manager
form of government Under the initial government six council members
and the Mayor were elected by the voters The Village will hold municipal
elections for fiscal year 1993 Effective for fiscal year 1994 each council
member will serve a four year term (limited to two consecutive terms)
The Mayor will hold office for a two year term (limited to two consecutive
terms) The Vice Mayor is appointed by the council and Mayor for a one
year term During the absence or incapacity of the Mayor the Vice Mayor
shall have all the powers authority duties and responsibilities of the
Mayor The Mayor serves as chairperson of public meetings and executes
certain documents authorized by charter ordinance or resolution In
addition to the general government function the Village provides its
residents with public works public safety parks and recreation and
community development functions The Village does not provide educational
fire or hospital facilities Those services are provided by the Dade County
School Board and Metropolitan Dade County respectively
This report includes financial statements of the funds and account group
required to account for those financial activities which are related to
the Village and are controlled by or dependent upon the Village s legislative
body the Village Council Control or dependence upon the Village was
determined on the basis of budget adoption taxing authority or the
Village s legal responsibility to fund any deficits that may occur
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1992
A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
2 Basis of Presentation — Fund Accounting
The Village s accounting systems are organized and operated on the basis
of funds and account groups which are the basic fiscal and accounting
entities in governmental accounting A fund is a separate accounting entity
with a self balancing set of accounts An account group is a financial
reporting device designed to provide accountability for certain assets
and liabilities that are not recorded in the funds because they do not
directly affect net expendable available financial resources The funds
and account group are classified as follows
GOVERNMENTAL FUND
The GENERAL FUND is the general operating fund of the City It is used
to account for all financial resources except those that are required
to be accounted for in specific funds Resources are generated primarily
from local utilities service taxes franchises licenses and permits
intergovernmental revenue and charges for services Expenditures are
incurred to provide public safety general government recreation
community development community affairs and public works services
AGENCY FUND
The agency fund is used to account for assets that the Village holds
on behalf of others as their agent
ACCOUNT GROUP
An Account Group is used to establish accounting control and accountability
over the Village s general fixed assets Accordingly the Village
maintains a General Fixed Asset Account Group
3 Financial Statement Measurement Focus
The accounting and reporting treatment applied to the fixed assets
associated with the general fund is determined by that fund s measurement
focus
GOVERNMENTAL FUND
This fund is used to account for the Village s expendable financial
resources and related current liabilities Measurement focus is upon
financial flow and financial position (sources uses and balances of
resources) rather than upon net income determination Only current
assets and current liabilities are included on its balance sheet with
fund balance representing available spendable resources
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1992
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A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3 Financial Statement Measurement Focus (Continued)
Basic financial statements necessary to fairly present financial position
and operating results for this fund is the Balance Sheet and the Statement
of Revenue Expenditures and Changes in Fund Balance
GENERAL FIXED ASSETS
e —r Fixed assets used in governmental fund type operations are accounted for
in the General Fixed Assets Account Group rather than in the governmental
funds General fixed assets purchased are initially reported as expenditures
in the general fund and are capitalized at historical cost or estimated
cost if actual historical cost is not available in the general fixed assets
account group except for certain infrastructure improvements which include
streets alleys sidewalks drainage and lighting systems Depreciation
is not required and has not been provided on general fixed assets
4 Basis of Accounting
The basis of accounting refers to the timing when revenues and expenditures
are recognized in the accounts and reported in the financial statements
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GOVERNMENTAL FUND
This fund uses the modified accrual basis of accounting as follows
REVENUES
Generally revenues are recognized when earned except for certain revenue
sources which are not susceptible to accrual Revenues in the following
categories are considered susceptible to accrual because they are both
measurable and available to finance expenditures of the current period
• Intergovernmental Revenues • Interest Earned
The following revenues are not considered susceptible to accrual in the
governmental fund because they are not both measurable and available to
finance expenditures of the current period
• Fees and Licenses • Sales Taxes
• Utility Taxes • Franchise Fees
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1992
A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
4 Basis of Accounting (Continued)
GOVERNMENTAL FUND - REVENUES (Continued)
The Village reports deferred revenues in its balance sheet Deferred
revenues arise when a potential revenue does not meet both the "measurable
and available criteria" for recognition in the current period In subsequent
periods when both revenue recognition criteria are met the liability
for deferred revenue is removed from the balance sheet and revenue is
recognized
EXPENDITURES
Expenditures are generally recognized when the related liability is incurred
Exceptions to this rule are 1) accumulated unpaid vacation and sick pay
worker s compensation and capital leases are not recognized in the General
Fund since the amount to be liquidated from available spendable resources
is recorded in the General Long Term Debt Account Group 2) principal
and interest on general long term debt which is recorded as an expenditure
on its due date Neither of the two exceptions noted above relate to the
financial reporting of the Village
5 Budgets and Budgetary Accounting
The Village is legally required to adopt an annual budget for its General
Fund Budgets are controlled at the fund level and all unencumbered
appropriations lapse at the end of the fiscal period Budgets canbe amended
during the fiscal year by Council adoption of the proposed amendments
Budgetary comparisons presented in this report are made on a budgetary
basis which is also CAAP basis Therefore there are no adjustments
necessary to convert budgetary basis expenditures for the year ended
September 30 1992 to a GAAP basis There were no supplemental budgetary
appropriations in the current fiscal year The Village did not utilize
encumbrance accounting in fiscal 1992 which was their inception year
6 Memorandum Only — Total Columns
Total columns on the various statements which are captioned "Memorandum
Only" aggregate the columnar amounts presented by fund type and account
group and are presented only to facilitate financial analysis Data in
these columns do not present financial position or results of operations
in conformity with generally accepted accounting principles Neither is
such data comparable to a consolidation Interfund eliminations have not
been made in the aggregation of this data
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1992
B DEPOSITS AND INVESTMENTS
At September 30 1992 the Village maintained cash book balances of $114 297
The total balance per bank was $422 390 The difference between the bank
balance and the Village s book balance is due to outstanding checks and
deposits in transit
In addition to insurance provided by the Federal Depository Insurance
Corporation (FDIC) all cash is held in banking institutions approved by
the State Treasurer of the State of Florida to hold public funds Under
Florida Statutes Chapter 280 Florida Security for Public Deposits Act the
State Treasurer requires all Florida qualified public depositories to deposit
with the Treasurer or another banking institution eligible collateral equal
to from 50% to 125% of the average daily balance for each month of all public
deposits in excess of any applicable deposit insurance held The percentage
of eligible collateral (generally in the form of U S Government and agency
securities state or local government debt or corporate bonds) to public
deposits is dependent upon the depository s financial history and its
compliance with Chapter 280 In the event of a failure of a qualified public
depository the remaining public depositories would be responsible for covering
any resulting losses Accordingly all amounts reported as cash are deemed
as insured and are therefore not subject to classification by credit risk
category under the provisions of GASB Statement No 3
Included in the agency funds are investments which are stated at market
value and are held by the ICMA Retirement Trust
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CARRYING MARKET
VALUE VALUE
Investments in mutual funds 2 4.133 p 4.113
C FIXED ASSETS
A summary of changes in general fixed assets by function is as follows
General Government
Balance
October 1
1991
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D NOTE PAYABLE — SHORT TERM
Additions Deletions
Balance
September 30
1992
2565 261 265.261
The Village obtained a $1 000 000 line of credit on September 10 1992 with
a banking institution to finance emergency interim funds to pay various
expenses created as a result of Hurricane Andrew until such time as it receives
revenues from federal or state agencies The Village pays 2 25% below prime
with interest payable monthly on any funds drawn The line of credit matures
on September 10 1993 The amount drawn as of September 30 1992 which is
$250 000 was repaid in October 1992 and is reported as a current liability
on the general fund balance sheet
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1992
E LITIGATION, COMMITMENTS, AND SUBSEQUENT EVENT
Litigation
The Village is involved in several lawsuits the outcome of which should not
have a material effect on the financial position of the Village
Commitments
1 The Village is obligated under an operating lease for office space for
a period of three years commencing March 1 1992 The lessee is not
obligated to pay any rent for the first six months of the first lease year
Under generally accepted accounting principles rent should be expensed
evenly over the lease term Therefore deferred rent is included in the
general fund balance sheet to account for the difference between rent paid
and rent expensed The following is the commitment under the lease
Fiscal Year 1993 $ 41 000
1994 50 000
1995 21.000
$112.000
2 In August 1992 the Village entered into an interlocal agreement with
Metropolitan Dade County in order to 1) delineate the responsibilities
for service levels and costs of municipal services to be provided to the
Village by the County for the fiscal year 1992 transition year 2) delineate
the responsibilities for service levels and costs of municipal services
should the Village desire to continue these municipal services for fiscal
year 1993 3) outline procedures whereby the Village may from time to time
as it deems appropriate provide all or some of those municipal services
in lieu of the County and 4) outline the general terms of future lease
agreements between the County and the Village concerning specified capital
assets
Subsequent Event
As a result of Hurricane Andrew the Village applied for federal assistance
from the Federal Emergency Management Agency (FEMA) The Village filed damage
survey reports (DSR s) with FEMA totaling $1 977 674 This is reported as
a receivable Due from FEMA on the General Fund Balance sheet In October
1992 the Village received $1 156 363 of the amount requested In addition
the Village expended $807 280 for hurricane related expenditures in fiscal
year 1992 offset by revenues of the same amount The difference between the
receivable and the recorded revenue is reported as deferred revenue in the
General Fund Balance Sheet
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1992
F DEFERRED COMPENSATION PLAN
The Village of Key Biscayne established a deferred compensation plan in fiscal
year 1992 The plan is voluntary and the Village does not contribute Employees
may elect to defer up to 25% of their annual income not to exceed $7 500
annually Deferred compensation deposits are made into the employees accounts
through payroll deductions before income taxes are withheld There were no
contributions for the fiscal year ended September 30 1992
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It is the opinion of the Village that the Village has no liability for losses
under the plan but does have the duty of due care that would be required
of an ordinary prudent investor The plan assets are the property of the
Village subject only to the claims of the Village s general creditors
Participant rights under the plan are equal to those of general creditors
in an amount equal to the fair market value of the deferred account of the
participants
G DEFINED CONTRIBUTION PLAN
The Village of Key Biscayne is a single employer that contributes to the
Village of Key Biscayne Money Purchase Plan which is a defined contribution
pension plan The plan currently covers the Village Manager Contributions
for fiscal year ended September 30 1992 were $4 140 which is 9% of the covered
payroll
A defined contribution pension plan provides pension benefits in return for
services rendered provides an individual account for each participant and
specifies how contributions to the individual s account are to be determined
instead of specifying the amount of benefits the individual is to receive
Under a defined contribution pension plan the benefits a participant s account
will receive depends solely on the amount contributed to the participant s
account the returns earned on investments on those contributions and
forfeitures of other participants benefits that may be allocated to such
participant s account The Village is required to contribute an amount equal
to 9% of the manager s gross earnings The manager is not required and does
not contribute to the plan The Village has no liability to the manager covered
by this plan other than the employer contribution to the plan Assets of
the plan are considered assets of the Village Although 100% vested from
the first day of employment the manager shares equal risk with other general
creditors of the Village in the unlikely event these assets would be needed
to pay for liabilities of the Village
The Village s total payroll for fiscal year 1992 is $135 000 of which $46 000
is current years covered payroll
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30 1992
G DEFINED CONTRIBUTION PLAN
The Money Purchase Plan held no securities of the Village or other related
parties during the year or as of the close of the fiscal year
H POST —EMPLOYMENT BENEFITS
The Village does not offer post employment benefits Therefore there is no
disclosure necessary for GASB statement No 12 "Disclosure of Information on
Post Employment Benefits
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COMBINING AND INDIVIDUAL
FUND AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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GOVERNMENTAL FUND
• GENERAL FUND
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GENERAL FUND
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• The General Fund is the principal
fund of the Village and is used to
account for resources traditionally
associated with govemments which
are not required to be accounted
for in another fund
VILLAGE OF KEY BISCAYNE FLORIDA
GENERAL FUND
BALANCE SHEET
SEPTEMBER 30 1992
ASSETS
Cash $ 114 297
Due from FEMA net of allowance for
disallowed claims of $90 000 1 887 674
Utility deposit 50
Total Assets $2.002.021
LIABILITIES AND FUND BALANCE
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Liabilities
Accounts payable and accrued expenses
Note payable short term
Deferred FEMA revenue
Deferred rent
Total Liabilities
Fund balance
Reserved for beach restricted fund
Unreserved and undesignated
Total fund balance
Total Liabilities and Fund Balance
$ 106 199
250 000
1 194 394
13,130
1,563,723
20 237
418.061
438,298
$2,002,021
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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VILLAGE OF KEY BISCAYNE FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30 1992
UTILITY TAXES
FRANCHISE FEES
INTERGOVERNMENTAL
County Subsidized Revenue
Sales Tax
VARIANCE
FAVORABLE
BUDGET ACTUAL (UNFAVORABLE)
$ 800.000 $ 990.869 S 190.869
1 024 700
151,392 151.392
50,612
1,024,700 50,612
(1 024 700)
50,612
( 974.088)
LICENSES AND PERMITS
Occupational Licenses 145 145
Building Permits 14 344 14 344
Water Meter Permits 300 300
14.789 14,789
OTHER
Donations 20 760 20 760
Miscellaneous 1.986 1.986
INTEREST
FEMA REVENUE
Total revenues
GENERAL GOVERNMENT
Legal
Personal Services
Current Expenditures
Capital Outlay
Council
Personal Services
Current Expenditures
Capital Outlay
Administrative
Personal Services
Current Expenditures
Capital Outlay
22.746 22,746
4,480 4,480
783.280 783,280
51,824,700 $2,018,168 $ 193.468
$ $ $
150 000 202 460 ( 52 460)
150.000 202.460 ( 52.460)
14 000 5 186 8 814
14.000 5,186 8.814
210 000 158 765 51 235
322 200 117 640 204 560
85,500 65,261 20,239
617,700 341.666 276,034
Total General Government $ 781.700 $ 549,312 $ 232.388
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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GENERAL FUND
STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL (Continued)
FISCAL YEAR ENDED SEPTEMBER 30 1992
BUDGET
VARIANCE
FAVORABLE
ACUAL (UNFAVORABLE)
PUBLIC WORKS
- Personal Services $ - $ - $
Current Expenditures 108 000 86 580 21 420
Capital Outlay -
108.000 86.580 21.420
COMMUNITY DEVELOPMENT
Personal Services -
Current Expenditures 143 000 45 508 97 592
Capital Outlay
143.000 45.508 97,592
PARKS & RECREATION
Personal Services
Current Expenditures 165 000 11 779 153 221
Capital Outlay
165,000 11,779 153,221
PUBLIC SAFETY
Personal Services
Current Expenditures 627 000 13 511 613 489
Capital Outlay -
627.000 13.511 613,489
HURRICANE EXPENDITURES
Personal Services
Current Expenditures 783 280 (783 280)
Capital Outlay
783.280 ( 783.280)
NON DEPARTMENTAL 90.000 ( 90.000)
rs
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Total Expenditures $1,824.700 $1,579,870 $ 244.830
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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• AGENCY FUND
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AGENCY FUND
• This Fund is used to account for
assets held for employees in accor-
dance with the provisions of Inter-
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VILLAGE OF KEY BISCAYNE FLORIDA
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
SEPTEMBER 30 1992
BALANCE BALANCE
OCTOBER 1 SEPTEMBER 30
1991 ADDITIONS DELETIONS 1992
ASSETS
Investments at market $ $ 4,113 $ $ 4.113
pawl
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LIABILITIES
Deferred benefits payable $ S 4,113 $ $ 4.113
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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GENERAL FIXED ASSETS
ACCOUNT GROUP
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• To account for fixed assets used for
general government purposes
VILLAGE OF KEY BISCAYNE FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS
BY SOURCE
SEPTEMBER 30 1992
GENERAL FIXED ASSETS
Furniture and Equipment $65,261
INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE
General Fund X565,261
MOM
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SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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Statistical Section
STATISTICAL TABLES
(SUPPLEMENTAL DATA)
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VILLAGE OF KEY BISCAYNE FLORIDA
COMMENTS ON THE STATISTICAL TABLES
SEPTEMBER 30 1992
The statistical tables in this section reflect the activities of fiscal year 1992
which was the Village s initial year of operation
The following statistical tables recommended by the National Council on Governmental
Accounting are not included for the reasons stated below
1 Tables which concern general obligation debt are omitted because the Village
has no general obligation debt as of September 30 1992
2 Computation of Legal Debt Margin The Village s charter and the Constitution
of the State of Florida Florida State Statute 200 181 does not provide for
a legal debt limit
3 The table of Special Assessment Collections has been omitted because the Village
- has no outstanding assessments as of September 30 1992
4 Property Tax Levies and Collections The Village has not levied any property
taxes for fiscal year 1992
5 Unless otherwise specified the source of all information was developed within
the Village
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VILLAGE OF KEY BISCAYNE FLORIDA
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION
Lae
FISCAL
YEAR
1992
GENERAL
GOVERNMENT
$1 468 000 (1)
PUBLIC PARKS AND
SAFETY RECREATION
$13 511 $11 779
PUBLIC
WORKS
TOTAL
$86 580 $1 579 870
(1) Includes $873 280 Hurricane Andrew Expenses to 9/30/92
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VILLAGE OF KEY BISCAYNE FLORIDA
GENERAL GOVERNMENT REVENUES BY SOURCE
FISCAL PROPERTY FEES AND INTERGOVERN UTILITY FRANCHISE
YEAR TAXES (1) LICENSES MENTAL (2) TAXES FEES OTHER INTEREST TOTAL
1992 $ $15 766 $934 018 $979 236 $151 392 $23 276 $4 480 $2 018 168
(1) The Village imposed property taxes for the first time for the 1992 93 fiscal year
(2) Includes FEMA
Note General Fund Only
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VILLAGE OF KEY BISCAYNE FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY
NET ASSESSED
FISCAL REAL PERSONAL PROPERTY
YEAR PROPERTY PROPERTY VALUE
1992 $1 601 826 518 $15 314 570 $1 617 141 088
Note Property taxes remained the property of Metropolitan Dade County for fiscal
year 1992 as they provided all the municipal services for the Village
Beginning with fiscal year 1993 the Village will be entitled to collect
property taxes
6666,66
fl
66646
6.7
7.6
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VILLAGE OF KEY BISCAYNE FLORIDA
PROPERTY VALUES CONSTRUCTION AND BANK DEPOSITS
FOR THE MONTH OF SEPTEMBER 1992 *
TOTAL RESIDENTIAL COMMERCIAL
FISCAL PERMITS NUMBER PERMITS TOTAL OF BANK DEPOSITS (1)
YEAR ISSUED OF UNITS VALUATION ISSUED VALUATION CONSTRUCTION (OOOs OMITTED)
1992 35 25 $638 483 10 $401 058 $1 039 541 520 282 998
SOURCE (1) Federal Reserve Bank Atlanta GA Information is for Metropolitan Dade
County which the Village of Key Biscayne is a part of Information is
not available for the Village of Key Biscayne alone
* In accordance with the provisions of an interlocal agreement with Dade
County the Village of Key Biscayne assumed the permitting function on
September 1 1992
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VILLAGE OF KEY BISCAYNE FLORIDA
Pr')
UTILITIES SERVICE TAX REVENUE BY SOURCE
FISCAL
YEAR ELECTRICITY TELECOMMUNICATIONS GAS FUEL OIL WATER TOTAL
1992 $676 919 $157 887 $35 552 $3 048 $105 830 $979 736
Note All Utility tax revenues are recorded in the General Fund
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VILLAGE OF KEY BISCAYNE FLORIDA
FRANCHISE REVENUE BY SOURCE
FISCAL
YEAR
1992
ELECTRICITY
$112 658
CABLE
TELEVISION
$38 734
TOTAL
$151 392
Note All franchise fee revenues are included in the General Fund
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VILLAGE OF KEY BISCAYNE FLORIDA
INTEREST REVENUE BY SOURCE
(350
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FISCAL GENERAL
YEAR FUND
TOTAL
1992 $4 480
$4 480
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VILLAGE OF KEY BISCAYNE FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30 1992
TAXABLE
TAXPAYER VALUATION
VMS $40 579 026
ROYAL BISCAYNE 39 142 694
BISCAYNE BEACH HOTEL ASSN 30 268 400
FINIVEST INVESTMENT ET AL (KEY COLONY) 11 044 583
PYRAMID DEVELOPMENT (SO OCEAN LANE DRIVE) 6 124 800
KEY BISCAYNE SHOPPING CENTER 6 000 000
RED DRAGON S SANDS (301 OCEAN DRIVE) 5 405 294
FERNWAY BUILDERS INC (GALLERIA MALL) 5 198 970
PICPAN INC 4 936 397
C G REBOZO (2 HARBOR POINT) 4 638 354
SOURCE Dade County Property Appraisers Office
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VILLAGE OF KEY BISCAYNE FLORIDA
DEMOGRAPHIC STATISTICS
POPULATION
4.90
off K,
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Estimates of Population by Age
UNDER 18 YEARS 18 TO 64 YEARS 65 YEARS OR OLDER
NUMBER PERCENT NUMBER PERCENT NUMBER PERCENT TOTAL
1990 1 646 19 5 684 64 1 524 17 8 854
Estimates of Population by Race
ANGLO BLACK HISPANIC TOTAL
1990 5 028 36 3 790 8 854
INCOME *
Per Capita Income
ANGLO BLACK HISPANIC
1990 NOT AVAILABLE AT THIS TIME
TOTAL
UNEMPLOYMENT RATES**(Percent)
1 1983 1984 1984 1986 1987 1988 1989 1990 1991 1992
"'® Dade County 98 78 75 67 58 53 63 67 88 118
Village of Key Biscayne 3 8
* SOURCE Bureau of Census Income Division
**SOURCE State Department of Labor
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Date of Incorporation
Form of Government
Area
Miles of Streets
Fire Protection
Number of Stations
Police Protection
Number of Stations
Education
VILLAGE OF KEY BISCAYNE FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30 1992
1991
Council Manager
1 2 Square Miles
20 2 Linear Miles
1 (Operated by Dade County)
1 (Operated by Dade County)
Elementary
Attendance Centers 1
Number of Students 498
Number of Teachers 32
Dade County Water & Sewer Authority
Number of Customers
Average Daily Consumption
Sewers
Number of Customers
Fire Hydrants
1 725
2 500 000 gallons
807
122
Building Permits Issued 35 (Began September 1 1992)
Recreation and Culture
Number of Parks
Number of Libraries
Number of Tennis Centers
Number of Recreational Centers
Employees
Full Time
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1 (Operated by Dade County)
1
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Supplementary Auditor's Reports Section
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RACHLIN & COHEN
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A PMflN R$HIP P SSIONa Assoarn NS
pla
Vlaij
1320 SOUTH Dun HIGHWAY
PENTHOUSE
CORAL GABLES FLORIDA 33146-2964
TELEPHONES DADE (305) 667 0412
BRowARD (305) 764-7717
FAx (305) 665 7456
700 SOUTHEAST THIRD AVENUE
SUITE 400
FT LAUDERDALE FLORIDA 33316-1102
TELEPHONES BROWARD (305) 764-7717
DADE (305) 667 0412
FAx (305) 764-7835
Independent Auditor s Report on Internal Control Structure
Based on an Audit of General Purpose Financial Statements Performed
in Accordance With Government Auditing Standards
To the Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
We have audited the general purpose financial statements of the Village of Key
Biscayne Florida as of and for the year ended September 30 1992 and have issued
our report thereon dated December 11 1992
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 financial statements are free of material
misstatement
In planning and performing our audit of the general purpose financial statements
of the Village of Key Biscayne Florida for the year ended September 30 1992
we considered its internal control structure in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements
and not to provide assurance on the internal control structure
The management of the Village of Key Biscayne Florida is responsible for establish
ing and maintaining an internal control structure In fulfilling this
responsibility estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures The objectives of an internal control structure are to provide
management with reasonable but not absolute assurance that assets are safeguarded
against loss from unauthorized use or disposition and that transactions are executed
in accordance with management s authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted accounting
principles Because of inherent limitations in an
y internal control structure
errors or irregularities may nevertheless occur and not be detected Also
projection of any evaluation of the structure to future periods is subject to the
risk that procedures may become inadequate because of changes in conditions or
that the effectiveness of the design and operation of policies and procedures may
deteriorate
For the purpose of this report we have classified the significant internal control
structure policies and procedures in the following categories
• General Ledger
• Cash Receipts and Disbursements
• Accounts Payable and Related Expenditures
45
MEMBER OF SUMMIT INTERNATIONAL ASSOCIATES, 1\G WITH OFFICES IN PRINCIPAL CITIES THROUGHOUT THE WORLD
MEMBER OF THE AMERICA\ INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DMSION FOR SEC PRACTICE SECTIO\ AND THE PRIVATE COMPANIES PRACTICE SECTION
MEMBER OF THE FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
To the Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
Page Two
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• Fixed Assets
• Revenues and Receivables
• Budget
• Payroll and Personnel
• Purchasing
• Accounting Applications
• Budget
• Payroll and Personnel
• Purchasing
• Accounting Applications
For all of the internal control structure categories listed above we obtained
an understanding of the design of relevant policies and procedures and whether
they have been placed in operation and we assessed control risks
We noted certain matters involving the internal control structure and its operation
that we consider to be reportable conditions under standards established by the
American Institute of Certified Public Accountants Reportable conditions involve
matters coming to our attention relating deficiencies in the design or operation
of the internal control structure that in our judgment could adversely affect
the entity s ability to record process summarize and report financial data
consistent with the assertions of management in the financial statements
1 Cash Receipts
Due to the limited number of personnel of the Village there is a lack of
segregation of duties within the cash function Procedures should be implemented
to mitigate the lack of segregation of duties and to safeguard assets (e g
one person opens the mail and records cash receipts a second person makes
the bank deposit and prepares the bank reconciliation) However this is
mitigated due to all fees being paid directly to the Bank
2 Cash Disbursements
During the course of our audit we noted that voided checks were not properly
mutilated (i e signature section not torn away) We suggest that all voided
checks be properly mutilated (and maintained) so as to prevent improper and or
future use
3 Accounting Software
Due to the fundamental differences between governmental fund and non governmental
accounting we recommend that governmental software be utilized to process
record and summarize the transactions of the individual funds Due to the
expansion of the Village the current accounting software will not properly
serve the needs of the Village At your request we are available to recommend
a governmental software package
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To the Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
Page Three
4 Personnel Files
The Village needs to maintain adequate personnel files for each employee which
at a minimum contains a W 4 I 9 (immigration form) documentation showing
pay rate change in pay rate date of hire application and requests for leave
The current files do not contain adequate documentation
5 Compensated Absences
In order to track vacation leave and sick leave employee attendance records
should be maintained on a monthly basis This would enable the Village to
have the data available to properly compensate persons for vacation and sick
time each employee There is no adequate current tracking of vacation and
sick leave availability
6 Electronic Data Processing (EDP)
A password should be utilized by authorized personnel to enter data into any
computer accounting applications so as to avoid alteration of financial data
During the course of our audit we noted that a password was not required to
retrieve record or delete current financial information The Village has
subsequently instituted a password system
1 7 Fixed Assets
A fixed asset detail should be maintained to track the property of the Village
r- The detail should include at a minimum date acquired description and the
j_ cost A tag numbering system is also recommended to help track the assets
A fixed asset detail did not exist for fiscal year 1992
Purchase Orders
We noted that purchase orders are issued to different departments but no log
or detail by purchase order number is maintained We recommend that a log
be maintained to control accountability for all purchase orders Each department
should be responsible for reporting to the person responsible for maintaining
the log
A material weakness is a reportable condition in which the design or operation
of one or more of the internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities in amounts that would
be material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions
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To the Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
Page Four
Our consideration of the internal control structure would not necessarily disclose
all matters in the internal control structure that might be reportable conditions
and accordingly would not necessarily disclose all reportable conditions that
are also considered to be material weaknesses as defined above However we believe
none of the reportable conditions described above is a material weakness
This report is intended for the information of management the Mayor and Village
Council This restriction is not intended to limit the distribution of this report
which is a matter of public record
Coral Gables Florida
L, December 11 1992
ur
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48
RACHLIN & COHEN
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A PARTNERS IF P ESS A.. Assoc/cm
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1320 SOUTH DIXIE HIGHWAY
PENTHOUSE
CORAL GABLES FLORIDA 33146-Z964
TELEPHONES DADE (305) 667-0412
BROWARD (305) 764-7717
FAX (305) 665 7456
700 SOUTHEAST THIRD AVENUE
SUITE 400
FT LAUDERDALE FLORIDA 33316-1102
TELEPHONES BROWARD (305) 764-7717
DADE (305) 667 0412
FAx (305) 764-7835
Independent Auditor s Report on Compliance
Based on an Audit of General Purpose Financial Statements Performed
in Accordance With Government Auditing Standards
To the Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
We have audited the general purpose financial statements of the Village of Key
Biscayne Florida as of and for the year ended September 30 1992 and have issued
our report thereon dated December 11 1992
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards issued by the Comptroller General of the United
States Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are
free of material misstatement
Compliance with laws regulations contracts and grants applicable to the Village
of Key Biscayne Florida is the responsibility of the management of the Village
of Key Biscayne As part of obtaining reasonable assurance about whether the general
purpose financial statements are free of material misstatement we performed tests
of the Village of Key Biscayne Florida compliance with certain provisions of laws
regulations contracts and grants However our objective was not to provide an
opinion on overall compliance with such provisions
The results of our tests indicate that with respect to the items tested the Village
of Key Biscayne Florida complied in all material respects with the provisions
referred to in the preceding paragraph With respect to items not tested nothing
came to our attention that caused us to believe that the Village of Key Biscayne
r Florida had not complied in all material respects with those provisions
L
rA
In connection with our audit of the general purpose financial statements of the
Village of Key Biscayne Florida for the year ended September 30 1992 we report
the following in accordance with Chapter 10 550 Rules of the Auditor General
Local Governmental Entity Audits which requires that this report specifically
address but not be limited to the matters outlined in Rule 10 554(1)(f)
1 This is the initial audit for the Village of Key Biscayne
2 Recommendations to improve the local governmental entity s present financial
management accounting procedures and internal accounting controls have been
addressed in the report on the internal control structure
49
MEMBER OF SUMMIT INTERNATIONAL ASSOCIATES, INC. WITH OFFICES IN PRINCIPAL CITIES THROUGHOUT THE WORLD
MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRIVATE COMPANIES PRACTICE SECTION
MEMBER OF THE FLORIDA INSTITUTE OF CERTIFIEDPUBLIC ACCOUNTANTS
To the Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
Page Two
4 During the course of our audit nothing came to our attention that caused us
to believe that the Village of Key Biscayne Florida
a Was in violation of any laws rules or regulations
b Made any illegal or improper expenditures
c Had improper or inadequate accounting procedures except as addressed in
the report on the internal control structure
d Failed to record financial transactions which could have a material effect
on the Village s general purpose financial statements
e Had other inaccuracies irregularities shortages and defalcations
Our audit was not directed primarily toward obtaining knowledge toward all
possible improprieties and accordingly our study was limited as described
in the second paragraph of this report
5 The financial report for the year ended September 30 1992 filed with the
Department of Banking and Finance pursuant to Section 218 32 Florida Statutes
was in agreement with the annual financial audit report for the same period
6 The Rules of the Auditor General County and District Tangible Proper (Chapter
10 400) are not applicable to the Village of Key Biscayne Florida
This report is intended solely for use of management and the Auditor General of
the State of Florida and should not be used for any other purpose This restriction
is not intended to limit the distribution of this report which upon acceptance
by the Council of the Village of Key Biscayne Florida is a matter of public record
kkeu
Coral Gables Florida
December 11 1992
PPM
50