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HomeMy Public PortalAboutComprehensive Annual Financial Report Fiscal Year Ended 09-30-95.tifr r r L. 7 VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30 1995 Prepared by THE FINANCE DEPARTMENT VILLAGE OF KEY BISCAYNE, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30 1995 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting vin Village Officials ix Village Organization Chart x L r L r II FINANCIAL SECTION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS OVERVIEW) 1 Combined Balance Sheet All Fund Types and Account Groups 2 Combined Statement of Revenues Expenditures and Changes in Fund Balance All Governmental Fund Types 3 Statement of Revenues and Expenditures Budget and Actual - General Fund 4 Combined Statement of Revenues Expenses and Changes in Retained Earnings Enterprise Funds 5 Combined Statement of Cash Flows Enterprise Funds 6 Notes to Financial Statements 7 COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES GENERAL FUND Balance Sheets 20 Schedule of Revenues and Expenditures Budget and Actual 21 ENTERPRISE FUNDS Combining Balance Sheet Combining Statement of Revenue Expenses and Changes m Retained Earnings Combining Statement of Cash Flows AGENCY FUNDS Combining Balance Sheet Statement of Changes m Assets and Liabilities Deferred Compensation Plan Statement of Changes m Assets and Liabilities Defined Contribution Plan 23 24 25 26 27 28 7 VILLAGE OF KEY BISCAYNE, FLORIDA a TABLE OF CONTENTS II FINANCIAL SECTION PAGE 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 m General Fixed Assets By Function and Activity 31 GENERAL LONG TERM DEBT ACCOUNT GROUP Statement of General Long -Term Debt 32 III STATISTICAL SECTION General Government Expenditures by Function 33 General Government Revenues By Source 34 Property Tax Levies and Collection 35 Assessed Actual Value of Taxable Property 36 Property Value Construction and Bank Deposits 37 Utility Tax Revenue By Source Franchise Fee Revenue by Source 38 Property Tax Rates Direct and Overlapping Governments 39 Ratio of Net Bonded Debt to Assessed Value and Per Capita 40 Ratio of Annual Debt Service Expenditures for Net Bonded Debt to General Governmental Expenditures 41 Principal Taxpayers 42 Demographic Statistics 43 Nfiscellaneous Statistical Data 44 IV SUPPLEMENTARY AUDITOR S REPORTS SECTION Report of Independent Certified Public Accountants on Internal Control Structure Based on an Audit Performed in Accordance With Government Auditing Standards 45 Report of Independent Certified Public Accountants on Compliance with Laws and Regulations Based on an Audit Performed in Accordance With Government Auditing Standards 47 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 48 Report of Independent Certified Public Accountants on Schedule of Federal and State Financial Assistance 50 U U 3 U G U r - L r- VILLAGE OF KEY BISCAYNE, FLORIDA TABLE OF CONTENTS PAGE IV SUPPLEMENTARY AUDITOR S REPORTS SECTION Schedule of Federal and State Financial Assistance 51 7 L en en 4.0.211 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 Recommendation to Improve the Village s Adnumstrative and Accounting Controls 58 D L ZJ C3 L._J 1---1 LIT] f 1 1---i L_-1 ._s INTRODUCTORY SECTION L Village Council John F Festa, Mayor John Wald Vice Mayor Raul llorente Hugh T O Reilly Michele Padovan Betty S me Raymond P Sullivan Village Manager C Samuel Kissinger VILLAGE OF KEY BISCAYNE Office of the Village Manager January 26 1996 Honorable Mayor Members of the Village Council and the Citizens of the Village of Key Biscayne The Comprehensive Annual Financial Report of the Village of Key Biscayne for the fiscal year ended September 30 1995 is hereby submitted Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures rests with the Village To the best of our knowledge and behee 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 LN funds and account groups of the Village All disclosures necessary to enable the reader to gam an understanding of the Village s financial activities have been included riot r L The Comprehensive Annual Fmancial 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 mcludes 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 l_ MISSION STATEMENT TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT VILLAGE OF KEY BISCAYNE Location Key Biscayne is a bamer 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 Humcane Andrew hit Key Biscayne making an impact that will be felt for decades A 7 foot storm surge caused flooding of homes schools, businesses hotels streets and landscaping. Wind did additional damage to structures and vegetation As of September 30 1995 the close of the fiscal year which is the subject of this report virtually all of the work authorized by FBMA 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 Mawr Activities During the initial year of incorporation most services were provided by Dade County The Village Police Department was activated on March 1 1993 and the Village Fire Rescue Department was activated on October 1 1993 On January 1 1995 the Village took over the responsibility of providing solid waste and recycling collection services to single family residences for $199 00 annually compared to the $399 00 previously charged by Metro Dade County Department of Solid Waste Management Debt Administration The Village of Key Biscayne has two outstanding obligations 1) a 10 year $9 200 000 Land Acquisition Revenue Bond which was issued on December 20 1993 at 4 36% from Northern Trust Bank to purchase the land for the Village Green The balance on September 30 1995 was $8 445 000 2) A $7 200 000 Bond Anticipation Note for two years at 4 89% from the Key Biscayne Bank and First Union National Bank for stormwater infrastructure Permanent financing will be obtained when construction is completed r r�s U 0 U U 0 0110, L MISSION STATEMENT TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT -11 fr VILLAGE OF KEY BISCAYNE FINANCIAL INFORMATION Accounting System, Internal and Budgetary Control The Village s accounting records for governmental funds operations are maintained on a modified accrual basis with revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred Budgetary control is maintained at the department level Expenditures that could result m 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 accountmg 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 Buildmg 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 Flonda r 4 The Charter of the Village of Key Biscayne L 5 The Government Finance Officers Association of the United States and Canada 111 MISSION STATEMENT TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT VILLAGE OF KEY BISCAYNE General Government Functions The General Fund is the general operating fund of the Village General tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund General operating expenditures fixed charges and capital improvement costs not accounted for through other funds are accounted for in the General Fund 1 The amount of General Fund revenues and expenditures from various sources are shown in the following schedule REVENUES Sources FY 1995 FY 1994 Utility Taxes $ 1 257 179 $ 1 268 428 Franchise Fees 652 844 668 020 Property Taxes 6 820 807 6 640 045 Intergovernmental 788 062 732 196 Licenses and Permits 351 152 246 533 Charges for Services 73 268 97 664 Impact Fees 250 000 382 713 Donations 8 000 Other 65 200 18 000 Interest 369 540 288 978 Hurricane Loss Grant Revenue 190 688 240 000 Grants 77 930 25,305 Total Revenue $10.904.670 10 607 882 EXPENDITURES (Budgetary Basis) Function FY 1995 FY 1994 General Government $ 615 480 $ 620 784 Public Works 579 072 609 932 Economic Development 0 126 460 Building Zoning & Planning 467 621 403 097 Parks and Recreation 213 704 272 158 Pubhc Safety 4 290 678 3 918 351 Debt Service 2 238 101 255 106 Non Departmental 505 700 227 105 Capital Outlay 1,675,721 12,758.815* Total Expenditures $ 10 586,07 $19 191 808 * Includes purchase of land for the Village Green, $9 238 318 lV MISSION STATEMENT TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT 0 Q C II C I- VILLAGE OF KEY BISCAYNE Capital Protects 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 m June 1995 and scheduled for completion ( in early 1996 The second segment estimated to cost $7 200 000 covers the area from Crandon j� Boulevard and West to Biscayne Bay Fiduciary Funds Fiduciary Funds are Trust and Agency Funds established for the purpose of accountmg for assets held in trustee capacity or as an agent for mdividuals pnvate organizations and other government As of September 30 1995 the following were recorded as Fiduciary Funds Trust and Agency Funds A section 401(a) money purchase plan is offered by the Village for its employees and was created in accordance with Internal Revenue Code Section 401 The plan managed by independent plan administrators permits employees to defer a portion of their salary until future years The 401 (a) fund had $1 OM 220 in investments for the fiscal year ended September 30 1995 In addition to the 401(a) plan employees may contribute to a section 457 plan Employee investments in the section 457 plan as of September 30 1995 were $312 371 rq V MISSION STATEMENT TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT VILLAGE OF KEY BISCAYNE General Fixed Assets The General Fixed Assets of the Village are those assets used in the performance of general governmental functions In accordance with generally accepted accounting principles for local governments the Village does not record depreciation on general fixed assets nor does it record roads bndges curbs and gutters streets and sidewalks drainage systems and similar assets that are immovable and of value only to the Village Assets are recorded at cost except donations which are recorded at fair market value at the date of receipt As of September 30 1995 the general fixed assets acquired amount to$12 896 219 Major additions for FY 1994-95 are land for the Village Green park public safety equipment and vehicles and the public safety complex Cash Management The Village had several cash management vehicles in this fiscal year and an investment account or money market account in the Key Biscayne Bank under an agreement which provided for overnight mvestments of both the investment account and the operating account The Village also has an investment with the Flonda Local Government Trust Fund administered by the State Board of Administration, which as of September 30 1995 had a balance of $101 446 in the General Fund and $14 779 for the Law Enforcement Trust Fund The Village purchased a one year 7 25% $1 000 000 Treasury Note in January 1995 Risk Management The Village is insured with the Flonda Municipal Insurance Trust for liability and property coverage and with the Flonda Municipal Self Insurance Fund for Workers Compensation coverage The liability limn under the policy is $5 000 000 Employee Life/Insurance is with North American Life Assurance Long -Term Disability for all employees and state mandated additional coverages for police officers and firemen is with the Hartford Insurance Company Independent Audit Provisions in the Honda 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 Pubhc 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 V I n Li 0 r N L MISSION STATEMENT 'TO PROVIDE A SAFE QUALITY COMMUNITY ENVIRONMENT FOR ALL ISI ANDERS THROUGH RESPONSIBLE GOVERNMENT 6 VILLAGE OF KEY BISCAYNE Annual Financial Report for the Fiscal Year ended September 30 1994 The Government Finance Officers Associate of the United States of Canada (GFOA) also presented an award for Distinguished Budget Presentation to the Village of Key Biscayne for its annual budget for the fiscal year beginning October 1 1994 In order to receive these awards a governmental unit must publish an easily readable and efficiently organized CAFR and a budget document that meets program criteria as a policy document as an operations guide as a financial plan and as a communications device The awards are valid for a period of one year only We believe our current CAFR and budget continue to conform to program requirements and we have submitted them to the GFOA to determine theirs eligibility for Fiscal Year ended September 30 1995 ACKNOWLEDGMENTS r r r r ra, r I L 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 Rachlm Cohen & Holz 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 Kt Inger Village Manager wht ack Neustadt Director of Finance and Administrative Services CSK/7N/yg V11 MISSION STATEMENT TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT President Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Key Biscayne, Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1994 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards m government accounting and financial reporting Executive Director L L 0 L L I - r 1_ Viii I VILLAGE OF KEY BISCAYNE, FLORIDA COUNCIL - MANAGER FORM OF GOVERNMENT VILLAGE COUNCIL John F Festa, Mayor Michele Padovan, Councilman Raul Llorente, Councilman Hugh T O'Reilly, Councilman Betty Q Sune, Vice Mayor Raymond P Sulhvan, Councilman John Wald, Councilman VILLAGE MANAGER C Samuel Kissinger VILLAGE CLERK Guido H Inguanzo, Jr VILLAGE ATTORNEY Weiss, Serota & Helfman, P A FINANCE DIRECTOR Jack Neustadt INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS RACHLIN COHEN & HOLTZ 1A VILLAGE OF KEY BISCAYNE, FLORIDA ORGANIZATION CHART VOTER VILLAGE COUNCIL H I1 I ! VILLAGE CLERIC SPECIAL MASTERS II VILLAGE MANAGER LOCAL PLANNING I AGENCY I I ASSISTANT I I VILLAGE TO I I ATTORNEY MANAGER J I I DEPARTMENT OF BUILDING, ZONING AND PLANNING 1 I I -j BUILDINGI I Ij - ZONING! PLANNING CODE ASSISTANCE I IDEPARTMENT OF EMERGENCY ! SERVICES I FIRE RESCUE POLICE ! I I I DEPARTMENT OF RECREATION SPECIAL EVENTS I DEPARTMENT II OF PUBLIC WORKS I 1 VILLAGE! ENGINEER! DEPARTMENT OF FINANCE AND ADMIN SERVICES 1 FINANCE/ - ACCOUNTING 1 SPORTS H CONTRACT I S SUPERVISORI II LI ATHLETICS I I9 BENEFITS 11STORMWATERI I-{ PROGRAMS/ MANAGEMENT! I TOURS I I !REFUSE COLLECTION & RECYCLING MAINTENANCE 7 0 0 U tj L C C FINANCIAL SECTION 1 L 17.21 L_ 3 rill rff7C _. 7 ilk r L Rachlin Cohen Holtz CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A Partnership Includm Professional Asso cations REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the accompanying general purpose financial statements of the Village of Key Biscayne Florida (the Village ) as of and for the year ended September 30 1995 as listed in the table of contents These general purpose financial statements are the responsibility of the Village s management. Our responsibility ,w, is to express an opinion on these general purpose financial statements based on our audit We conducted our audit m accordance with generally accepted auditing standards and GovernmentAudehng 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 matenal misstatement An audit includes exammmg on a test basis evidence supporting the amounts and disclosures m the general purpose financial statements An audit also includes assessing the accounting pnnciples used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation We believe that our audit provides a reasonable basis for our opinion In our opinion the general purpose financial statements referred to above present fairly m all matenal respects the financial position of the Village of Key Biscayne Flonda as of September 30 1995 and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity epa with generally accepted accounting pnnciples In accordance with Government Auditing Standards we have also issued a report dated January 25 1996 on our consideration of the Village s internal control structure and a report dated January 25 1996 on its compliance with laws and regulations Our audit was made for the purpose of formmg an opinion on the general purpose financial statements taken as a whole The accompanying combining and individual fund and account group statements and schedules as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose fmancial 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 m all material respects m relation to the general purpose financial statements taken as a whole The information shown m the statistical section listed in the table of contents has not been subjected to the auditing procedures applied m the audit of the general purpose financial statements and accordingly we express no opinion thereon. Miami Florida January 25 1996 One Southeast Third Avenue Tenth Floor Miam Honda 33131 Dade (305) 377 4228 Fax (305) 377 8331 700 Southeast Third Avenue Third Floor Ft Lauderdale Honda 33316 Broward (954) 5b 1040 Fax (954) 325 2004 444, ?itrit Member f Summrtl temah nal Assocmtes In with ffi esmprm p Icm througho t thewo Id Memb f the Arne wan In Mute fC hfidPubh A ountantsD onf SECP ch 5 ton andth P to Compan es Pr teSch Memb fthe Fl d Inshtute fC rhfr JPubh Acc untants ] L_J L-1 r-,. � GENERAL PURPOSES FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) 1 w vi f C 1 C, 3 CA [ 1 1 ] 1 1 [ _] E -1 l 7 [ a 1—1 tin 7 L" f I 1 r 1 f'l o _l f 9 i "1 1- I i 3 r q ) r —1 VILLAGE OF KEY BISCAY NE, FLORID A L--9 COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOU NT GROUPS SEPTEMBER 30 1995 (WITH COMP ARATIVE TOTALS FOR SEPTEMBER 30 1994) Governmental Proprietary Fid uciary Totals F und Types Fund Type Fund Type Account Groups (Mem ora nd um Only) Capital General General ASSETS AN D OTHER DEBITS General Projects Enterprise Agency Fixed Assets Long Term Debt 1995 1994 Cash and cash equivalents Inve stments Loan receivable Due from other governments D ue from other funds Accounts receivable Interest receivable General fixed assets Construct on n progre ss Amount to be provided f r retirement of general long term debt Total assets and other debits LIABILITIES EQUITY AND OTH ER CREDITS Liabilities A ccoun ts payable and accrued I abilities D ue to other fun ds D eposits and performance bonds Bonds payable D eferred FEMA revenue Deferred rent D eferred benefts payable N ote payable FEMA Bond antic pat on notes Compensated absences payable In terest payable Total habiht es $1 876 035 1 000 000 82 657 171 233 59 853 $3,189,778 $341 645 25 330 106 309 13 746 487.030 $1 327 733 $ 3 811 881 $ 5 104 000 1 393 591 60 279 44 649 158 206 1263 487 $1.327,733 $10 .382,223 $1 ,453 ,870 $47 373 $621 582 14 029 157 204 7 200 000 1 453 870 61, 402 7,978,786 1.453 .870 12 896 219 8,774.169 $12,896,219 $ 8,774,169 $7 015 649 $ 5 727 073 7 497 591 671 487 60 279 10 600 82 657 82 658 171 233 150 000 104 502 96 020 158 206 12 896 219 11 484 601 1 263 487 333 754 8.774 ,169 10,426 ,111 $38.023,992 $28.982 ,304 $ $ $1 010 600 $ 445 617 171 233 150 000 25 330 8 445 000 8 445 000 9 200 000 106 309 106 309 13 746 4 650 1 453 870 682 087 1 000 000 7 200 000 329 169 329 169 226 111 60.000 8,774,169 18,755,257 11.874 ,774 Equity and other credits Investmen t in gen eral f ed assets 12 896 219 12 896 219 11 484 601 Retained earnings 2 403 437 2 403 437 183 754 Fund balance Reserved 1 418 507 1 418 507 3 262 027 Unreserved Designated 530 368 530 368 2 096 967 Undesignated 753,873 1.266.331 2,020 .204 80 .181 Total equ ity a nd o ther cred is 2.702, 748 1,266.331 2.403,437 12,896,219 19.268 ,735 17,107 .530 Total liabilities equ ty and oth r redds $,94189,778 $1,327,733 $10,382,223 $1,453. 870 $12, 896.219 $8,774,169 $38 .023 .992 $28.982.304 See notes to finan cial statements 2 VILLAGE OF KEY BISCAYNE, FLORIDA 0 COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES FISCAL YEAR ENDED SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1994) Revenues Property taxes Utility taxes Franchise fees Intergovernmental Licenses and permits Charges for services Other Interest Impact fees Grants Total revenues Expenditures Current General government Public works Economic development Building planning and zonmg 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 Bond proceeds Total other financing sources (uses) Excess (deficiency) of revenues and other financmg sources over expenditures and other financing uses Fund balance beginning Fund balance ending General Fund Totals Capital (Memorandum Only) Projects Fund $ 6 820 807 $ 1 257 179 652 844 788 062 351 152 73 268 73 200 369 540 250 000 268.618 10,904,670 615 480 573 844 467 621 211 159 4 294 606 512 331 1 690 772 1 755 000 483.101 10.603,914 61 402 61.402 300 756 (61,402) 1 327 733 (3 037 183) (3.037,183) 1,327,733 (2 736 427) 5,439,175 $ 2,702,748 1 266 331 $1,266,331 1995 $ 6 820 807 1 257 179 652 844 788 062 351 152 73 268 73 200 369 540 250 000 268,618 10,904,670 1994 $ 6 640 045 I 268 428 668 020 732 196 246 533 97 664 18 000 288,978 382 713 265,305 10,607,882 615 480 620 784 573 844 609 932 126 460 467 621 403 097 211 159 272 158 4 294 606 3 918 351 512 331 227 105 1 752 174 12 758 815 1 755 000 483,101 10,665,316 239,354 255,1-06 19,191,808 (8,583,926) 1 327 733 (3 037 183) (325 671) 9.200.000 (1,709,450) 8,874,329 (1 470 096) 5,439,175 290 403 5,148,772 $ 3,969,079 $ 5,439,175 C a U C C r See notes to financial statements 3 VILLAGE OF KEY BISCAYNE FLORIDA STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND FISCAL YEAR ENDED SEPTEMBER 30 1995 Budget Budgetary Variance Basis Favorable Actual (Unfavorable) Revenues Property taxes $ 6 786 441 $ 6 820 807 $ 34 366 Utility taxes 1 183 000 1 257 179 74 179 Franchise fees 625 000 652 844 27 844 Intergovernmental 651 000 788 062 137 062 Licenses and permits 251 000 351 152 100 152 Charges for services 57 000 73 268 16 268 Other 998 73 200 72 202 Interest 100 000 369 540 269 540 Impact Fees 250 000 250 000 Grants 268.618 268.618 ,— Total revenues 9,654,439 10,904,670 1,250.231 L., Expenditures Current General government 681 111 615 480 65 631 Public works 470 000 579 072 (109 072) Building planning and zoning 466 878 467 621 (743) Parks and recreation 223 207 213 704 9 503 i - Public safety 4 425 154 4 290 678 134 476 Non departmental 534 500 505 700 28 800 tn Capital outlay 1 657 128 1 675 721 (18 593) Debt service Principal 755 000 1 755 000 (I 000 000) r Interest 441461 483.101 (41,640) Total expenditures 9.654,439 10,586,077 (931,638) L. Excess of revenues over expenditures 318 593 318 593 Other financing uses Transfers out Total other financing uses (3.037,183) (3,037.183) (3,037,183) (3,037,183) Deficiency of revenues over expenditures and other financing uses $ $(2,718,590) $(2,718,590) See notes to financial statements VILLAGE OF KEY BISCAYNE, FLORIDA COMBINED STATEMENT OF REVENUE EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1994) Operating revenue Operating expenses General and administrative costs Operatmg income Non -operating revenue (expense) Interest income Interest expense Total non operatmg revenue (expense) 1995 1994 $617 999 $ 165.463 452,536 221 023 (163,326) 57,697 Income before transfers 510 233 Transfers in 1,709,450 325.671 Net income 2 219 683 325 671 Retained earnings (deficit) beginning 183.754 (141,917) Retamed earnings ending $2,403.437 $ 183.754 See notes to financial statements -5 E U U El U 0 U U i E VILLAGE OF KEY BISCAYNE, FLORIDA F.n iT COMBINED STATEMENT OF CASH FLOWS ENTERPRISE FUNDS FISCAL YEAR ENDED SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1994) 1995 1994 Cash flows from operating activities Operating income $ 452,536 $ Adjustments to reconcile operating income to net cash provided by operating activities Increase in Accounts receivable (44 649) Interest receivable (158 206) - Increase (decrease) in Accounts payable 621 582 (26 507) Due to other funds 7.204 34,590 Total adjustments 425,931 8.083 Net cash provided by operating activities 878 467 8 083 Cash flows from non capital financing activities Transfers in Net cash provided by non capital financing activities 1,709,450 325.671 1,709.450 325.671 Cash flows from capital and related financial activities Construction in progress (929 733) (333 754) Proceeds from bond anticipation notes 7 200 000 Interest paid (163,326) Net cash provided (used) by capital and related financing activities 6,106,941 (333,754) Cash flows from investing activities Purchase of investments Interest received Net cash used by investing activities (5 104 000) 221.023 (4,882,977) Net increase m cash 3 811 881 Cash beginning Cash endmg $ 3,811,881 $ See notes to financial statements -6 C C La- [W J L.1 L .a a Lad arf NOTES TO FINANCIAL STATEMENTS riL I I t I r, f E_1 1.7.3 f®1 L_ J C] CA LII I € J L t J t_ A VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30 1995 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of the Village of Key Biscayne s significant accounting policies is presented to assist the reader m 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 Reportmg Entity The Village of Key Biscayne (the Village ) located m Dade County is a political subdivision of the State of Florida 7 L.. 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 cntena for determining whether another governmental organization should be mcluded m the Village s reportmg 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 m its reporting entity At September 30 1995 the Village did not have any organizations meetmg 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 FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The funds and account groups are classified as follows GOVERNMENTAL FUND TYPES The GENERAL FUND is the general operating fund of the City It is used to account for all financial resources except those that are required to be accounted for in specific funds Resources are generated primarily from property taxes local utilities service taxes and franchise fees Expenditures are incurred to provide public safety general government recreation building planning and zoning and public works services The CAPITAL PROJECTS FUND accounts for the acquisition or construction of major capital projects not being financed by proprietary funds PROPRIETARY FUND TYPE The ENTERPRISE FUNDS are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs including depreciation of providing goods or services to the general public on a continuing basis be financed or recovered prmiarily through users charges The Village s enterprise operation consists of a stormwater utility system and a solid waste fund FIDUCIARY FUND TYPES The AGENCY FUNDS are used to account for assets that the Village maintains on behalf of others as their agent and consists of a deferred compensation plan and a defined contribution plan ACCOUNT GROUPS ACCOUNT GROUPS are used to establish accounting control and accountability over the Village s general fixed assets and long term obligations Accordingly the Village maintains a general fixed asset account group and a general long term debt account group 3 Measurement Focus GOVERNMENTAL FUND TYPES Governmental funds are used to account for the Village s general government activities Governmental funds use the flow of current financial resources measurement focus Only current assets and current liabilities are included on its balance sheet with fund balance representing available spendable resources 0 0 0 0 U 1U p L C C C -8 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3 Financial Statement Measurement Focus PROPRIETARY FUND TYPE Proprietary funds are accounted for on the flow of economic resources measurement focus Fmancial activity is reported in essentially the same manner as in commercial enterprises where net mcome and capital maintenance are measured All assets and liabilities (whether current or noncurrent) are included in the financial statements Major outlays for capital assets and improvements are capitalized FIDUCIARY FUND TYPE The agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations ACCOUNT GROUPS r t r The general fixed assets account group is used to account for fixed assets not accounted for in proprietary funds The general long term debt account group is used to account for general long term debt and certam other liabilities that are not specific liabilities of proprietary funds 4 Basis of Accounting The basis of accounting refers to the tuning when revenues and expenditures are recogmzed in the accounts and reported m the financial statements GOVERNMENTAL AND AGENCY FUND TYPES These funds use the modified accrual basis of accounting Under the modified accrual basis of accounting revenues are recorded when susceptible to accrual 1 e when both measurable and available Measurable means the amount of the transaction can be determined Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period The Village considers all revenues available if they are collected within 60 days after year end Property taxes franchise fees utility taxes intergovernmental revenues and interest are susceptible to accrual Other receipts and taxes become measurable and available when cash is received by the Village and are recognized as revenue at that time Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met VILLAGE OF KEY BISCAYNE, FLORIDA a NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 4 Basis of Accounting Expenditures are generally recognized when the related liability is incurred Exceptions to this rule are 1) long term portion of accumulated compensated absences is not recognized in the general fund until the liability is expected to be liquidated from available spendable resources and 2) unmatured interest on general long-term debt which is recorded as an expenditure on its due date PROPRIETARY FUND TYPE The enterprise funds are accounted for using the accrual basis of accounting Revenues are recognized when earned and expenses are recognized when incurred The Village has elected to follow all Financial Accounting Standards Board (FASB) Statements issued on or before November 30 1989 except those that conflict with or are contradicted by Governmental Accounting Standards Board (GASB) pronouncements 5 Budgetary Information An annual appropriated budget is prepared for the general fund (a) The Village Manager submits to the Council a proposed operating budget for the ensuing fiscal year The operating budget includes proposed revenues and expenditures with an explanation regarding each expenditure that is not of a routine nature (b) Public hearings are conducted to obtain taxpayer comments (c) Prior to October 1 the budget is legally enacted through passage of an ordinance (d) The Village Council by motion may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated However there were no supplemental appropriations in this fiscal year (e) Formal budgetary integration is employed as a management control device during the year for the general fund (f) The budget for the general fund is adopted on a basis consistent with generally accepted accounting principles (GAAP) U C -10 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 5 Budgetary Information r L t_ (g) The Village Manager is authorized to transfer part or all of an encumbered appropnation 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 m the following year s budget (i) Budgeted amounts are as onginally adopted or as amended Individual type amendments were not material in relation to the original appropriations 6 Encumbrances Encumbrances are recorded at the time a purchase order or other commitment is entered into Encumbrances outstanding at year end represent the estimated amount of expenditures to result ifunperformed 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 m process As a result encumbrances outstandmg 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 mvest m those instruments authorized by the Florida Statutes Investments are stated at cost except those of the deferred compensation plan and defined contribution plan which are stated at market 8 General Fixed Assets Fixed assets used m 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 m the general and capital projects funds and are capitalized at historical cost or estimated cost if actual historical cost is not available in the general fixed assets account group except for certain infrastructure improvements which include streets alleys sidewalks drainage and lighting systems Depreciation is not required and has not been provided on general fixed assets 11 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 9 Compensated Absences It is the Village s policy to permit employees to accumulate earned but unused vacation and sick pay benefits Only those amounts estimated to be liquidated with expendable available financial resources are accrued at year end in the general fund with the long term portion of the accumulated unpaid vacation and sick leave m the general long-term debt account group 10 Long Term Obligations The Village reports long term debt of governmental funds in the general long term debt account group Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the general long-term debt account group Long term debt and other obligations financed by proprietary funds are reported as liabilities of those funds 11 Reserves and Designations Fund balances are reserved to indicate that a portion of fund equity is not available for appropriation or is legally segregated for a specific future use The description of each reserve indicates the purpose for which each was mtended Designated fund balance indicate that a portion of fund equity has been segregated based on tentative plans of the Village Such plans or intent are subject to change Unreserved undesignated fund balance is the portion of fund equity available for any lawful use 12 Comparative Data/Reclassification Certain amounts m the 1994 columns have been reclassified to conform to 1995 presentation Comparative total data for the prior year has been presented in selected sections of the financial statements to provide anunderstanding of changes in Village s financial position and operations 13 Memorandum Only Total Columns Total columns on the general purpose financial statements are captioned as 'memorandum only and aggregate the columnar amounts presented by fund type and account group and are presented only to facilitate financial analysis Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles neither is such data comparable to a consolidation Interfund eliminations have not been made in the aggregation of this data 12 U 6 L r, E L C VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 14 Budget/GAAP Reconciliation As of September 30 1995 the following reconciles expenditures reported on a GAAP basis to the budgetary basis Deficiency of revenues over expenditures and other financing uses (budgetary basis) $(2 718 590) Prior year encumbrances (27 319) Current year encumbrances 9.482 Deficiency of revenues and other financing sources over expenditures and other financing uses (GAAP) $(2,736,427) NOTE 2 DEPOSITS AND INVESTMENTS At September 30 1995 the Village maintained deposits (cash on hand) with book balances of $6 914 203 In addition to insurance provided by the Federal Depository Insurance Corporation ( FDIC ) all deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds Under Florida Statutes Chapter 280 Flonda Security for Public Deposits Act the State Treasurer requires all Florida quahfied public depositories to deposit withthe Treasurer or another banking institution eligible collateral equal to 50 % to 125 % of the average daily balance for each month of all public deposits m excess of any applicable deposit insurance held The percentage of eligible collateral (generally m 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 L and the State Board of Adnumstration investment pool The Village s investments are categorized in the following table to give an indication of the level 7 of risk assumed by the Village at year end Category 1 includes insured or registered investments held by the Village or its agent in the Village s name Category 2 includes uninsured and unregistered investments for which the secunties are held by the counterparty s trust department or agent in C the Village s name Category 3 mcludes uninsured and unregistered mvestments for which the securities are held by the counterparty s trust department or agent but not in the Village s name 13 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 2 DEPOSITS AND INVESTMENTS At September 30 1995 the Village s investments balances were as follows Carrying Market Category 1 Amount Value U S Treasury Note Certificates of Deposit $1 000 000 5.104.000 $6.104.000 $1 000 000 5.104,00 6 104 000 $1 000 000 5.104.000 6 104 000 Investments not subject to categorization Deferred compensation plans 1 393 591 1 393 591 State investment pool 101,446 101,446 $7,599,037 $7,599,037 A reconciliation of cash and investments as shown on the combined balance sheet is a follows Cash on hand Carrying amount of investments Cash and cash equivalents Investments NOTE 3 PROPERTY TAXES $ 6 914 203 7.599.037 $14,513,240 $ 7 015 649 7,497,591 $14,513,240 Property values are assessed on a county wide basis by the Metropolitan Dade County Property Appraiser as of January 1 the lien date of each year Taxable value of property within the Village is certified by the Property Appraiser and the Village levies a tax millage rate upon the taxable value which will provide revenue required for the fiscal year beginning October 1 Property taxes levied each October 1 by the Village and all other taxing authorities within the County are centrally billed and collected by Dade County with remittances to the Village of their proportionate share of collected taxes Taxes for the fiscal year beginning October 1 are billed in the month of November subject to a 1% per month discount for the period November through February and are due no later than March 31 On April 1 unpaid amounts become delinquent with mterest and penalties added thereafter BegimungJune 1 tax certificates representing delinquent tax with interest and penalties are sold by Dade County with remittance to the Village for its share of those receipts At September 30 1995 there were no significant delinquent taxes U a U FI U 1 C 14- C VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) Salm NOTE 4 FIXED ASSETS The following is a summary of changes in general fixed assets account group during the year Balance Balance October 1 September 30 1994 Additions Deletions 1995 talwik Land $ 9 238 317 $ 2 340 $ $ 9 240 657 Buildings 554 291 32 785 587 076 Improvements other than buildings 26 608 895 114 921 722 Equipment 1 617 459 444 433 2 061 892 Furniture and fixtures 47,926 36,946 84 872 Total $11,484,601 $1,411,618 $ $12,896,219 Depreciation is not required and has not been provided on general fixed assets The following is a summary of proprietary fiord type fixed assets at September 30 1995 Balance Balance October 1 September 30 1994 Additions Deletions 1995 Construction in progress $333,754 $929,733 $ $1,263,487 NOTE 5 LONG-TERM DEBT Changes in general long term debt durmg the year are summanzed as follows Balance Balance October 1 September 30 1994 Additions Reductions 1995 Loan from FEMA Revenue bonds payable Compensated absences payable Revenue Bonds $ 1 000 000 $ $1 000 000 $ 9 200 000 755 000 8 445 000 226,111 103,058 329,169 $10,426,111 $103,058 $1,755,000 $8,774,169 Durmg the fiscal year ended September 30 1994 the Village issued land acquisition revenue bonds of $9 200 000 the proceeds of which were used for the acquisition of the Village Green property The Village has pledged public service tax revenues to secure payment of the principal and interest on the bonds The bonds are due in annual prmcipal installments ranging from $785 000 m fiscal 1996 to $1 105 000 m fiscal 2004 Interest accrues at 4 36% per annum 15 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 5 LONG TERM DEBT The annual requirements to amortize the bonds as of September 30 1995 are as follows Fiscal Year Ending September 30 Principal Interest Total 1996 $ 785 000 $ 351089 $ 1 136 089 1997 820 000 316 100 1 136 100 1998 855 000 279 585 1 I34 585 1999 895 000 241 435 1 136 435 2000 935 000 201,541 1 136 541 2001 2004 4,155.000 371.799 4.526.799 $8,445,000 $1,761,549 $10,206,549 PROPRIETARY FUND DEBT Bond Anticipation Notes Changes in proprietary fund debt during the year are summarized as follows Bond anticipation notes Balance October 1 1994 Additions Balance September 30 1995 $ $7,200,000 $7,200,000 During the fiscal year ended September 30 1995 the Village obtamed financing for the west side stormwater construction project in the form of $7 200 000 Bond Anticipation Notes Series 1995 Interest accrues at 4 89% per annum with a balloon principal payment due in fiscal year 1997 The annual requirements to amortize the notes as of September 30 1995 are as follows Principal Interest Total Fiscal year ending September 30 1996 $ $352 080 $ 352 080 1997 7.200.000 176.040 7.376,040 $7,200,000 $528,120 $7,728,120 El U EJ U 0 U U U L 16 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 6 COMMITMENTS AND CONTINGENCIES Litigation The Village is involved in several lawsuits incidental to its operations the outcome of which in the opinion of management and legal counsel should not have a material effect on the financial condition of the Village Commitments The Village is obligated under a non cancelable operating lease for office space for a period of two years commencing July 1 1995 Rent expense was $49 000 for fiscal year 1995 The following is the commitment under the lease Fiscal year ending September 30 7 L 1996 1997 $ 71 000 54.000 $125.000 The Village as of September 30 1995 has outstanding construction commitments of approximately $8 8 million for their stormwater utility projects Contingent Liability Federal and State programs in which the Village participates were audited in accordance with the provisions of U S Office of Management and Budget Circular A 128 and the Rules of the Auditor General of the State of Florida Pursuant to those provisions certain programs were tested for compliance with applicable grant requirements While no matters of noncompliance were disclosed by the audit, government agencies may subject grant programs to additional compliance tests which may result in disallowed costs In the opmion of management, future disallowances of current grant expenditures if any would not have a material effect on the Village s financial condition NOTE 7 RESERVED/DESIGNATED FUND BALANCE As of September 30 1995 fund balances in the general fund have been reserved or designated for the following purposes Reserved Fund Balance General fund. Supplemental fire aid $ 106 000 Encumbrances 9 482 Beach improvements 23 027 Beautification of Crandon Boulevard 179 412 Recreation facilities 559 562 Grant audits 541.024 $1.418.507 C 17 VILLAGE OF KEY BISCAYNE FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 7 RESERVED/DESIGNATED FUND BALANCE Designated Fund Balance General fund Police/fire equipment and building Community grants maintenance and improvements Future personnel expense Professional fees NOTE 8 DEFERRED COMPENSATION PLAN $ 89 101 125 029 250 000 66.238 $530.368 The Village ofKeyfiscaynemaintains 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 mto the employees accounts through payroll deductions before income taxes are withheld The deferred compensation is not available to employees until termination retirement, death or unforeseeable emergency Contributions by the employees for the fiscal year ended September 30 1995 were $130 827 All amounts of compensation deferred under the plan all property and rights purchased with those amounts and all income attributable to those amounts property or rights (until paid or made available to the employee or beneficiary) are solely the property and rights of the Village subject only to the claims of the Village s general creditors Participants nghts under the plan are equal to those of general creditors ofthe Village in an amount equal to the fair market value of the deferred account of each participant It is the opmion of the Village that the Village has no liability for losses under the plan but does have the duty of due care that wouldbe required of an ordinary prudent investor The Village believes that it is unlikely that it will use plan assets to satisfy claims of general creditors in the future NOTE 9 DEFINED CONTRIBUTION PLAN The Village of Key Biscayne is a single employer that contributes to the Village of Key Biscayne Money Purchase Plan which is a defined contribution pension plan created m accordance with Internal Revenue Code Section 401(a) The plan currently covers all full time employees of the Village Under this plan, the Village contributes 11% and the employee contributes 6% Employer contributions for fiscal year ended September 30 1995 were $304 543 while the employee contributions were $166 005 A defined contribution pension plan provides pension benefits in return for services rendered provides an individual account for each participant and specifies how contributions to the individual s account are to be determined instead of specifying the amount of benefits the individual is to receive u 18 VILLAGE OF KEY BISCAYNE, FLORIDA NOTES TO FINANCIAL STATEMENTS (Continued) NOTE 9 DEFINED CONTRIBUTION PLAN Less r 7 L E 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 1995 is $3 277 891 The Money Purchase Plan held no securities of the Village or related parties during the year or as of the end of the fiscal year 19 Ln.J r I © E. = IJ L LU L. ,-3 L ai COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUPS STATEMENTS AND SCHEDULES (- 1 L. t 1 r I E' l 1 f J ri f�'] f_= 7 [:3 r`) €" l f' f-1 t 1 fl 1 r r L L r l. GENERAL FUND The General Fund is the principal fund of the Village and is used to account for resources traditionally associated with governments which are not required to be accounted for in another fund r i L-71 F1 Cl t 3 Cl C 1 C a C_ 3 L 7 L _7 [Ti e 7 L I C J VILLAGE OF KEY BISCAYNE FLORIDA GENERAL FUND BALANCE SHEETS SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1994) 1995 1994 ASSETS Cash and cash equivalents $1 876 035 $5 727 073 Investments 1 000 000 Due from other governments 82 657 82 658 Due from other funds 171 233 150 000 Accounts receivable 59,853 96,020 Total assets $3,189,778 $6,055,751 LIABILITIES AND FUND BALANCE Led Used P Liabilities Accounts payable and accrued liabilities Deposits and performance bonds Interest payable Deferred revenue Defeijed rent Total liabilities $ 341 645 25 330 106 309 13,746 487,030 $ 445 617 60 000 106 309 4 650 616,576 Fund balance Reserved 1 418 507 3 262 027 Unreserved. Designated 530 368 2 096 967 Undesignated 753,873 80,181 Total fund balance 2.702,748 5,439,175 Total liabilities and fund balance $3,189,778 $6,055,751 20 VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL FISCAL YEAR ENDED SEPTEMBER 30 1995 Variance Favorable Budget Actual (Unfavorable) Revenues Property taxes $6,786,441 $ 6,820,807 $ 34.366 Utility taxes 1.183,000 1,257,179 74,179 Franchise fees 625,000 652.844 27.844 Intergovernmental State shared revenue 651,000 788.062 137.062 Licenses and permits Occupational licenses 25 000 Building permits 225 000 Other 1,000 251,000 Charges for services 57,000 22 844 328 308 351,152 73,268 (2 156) 103 308 (1.000) 100.152 16,268 Other Donations 998 8 000 7 002 Miscellaneous - 65,200 65.200 998 73,200 72.202 Interest 100.000 369.540 269.540 Impact fees Grants Hurricane loss grant revenue Other grants Total revenue $9,654,439 21 250,000 250.000 190 687 77.931 268.618 $10,904,670 190 687 77.931 268.618 $1,250,231 0 C i in E [ [ I - E VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL (Continued) FISCAL YEAR ENDED SEPTEMBER 30 1995 Variance Favorable Budget Actual (Unfavorable) Expenditures General government Elected officials $ 10 000 $ 10 100 $ (100) Administration 347 154 328 322 18 832 Village clerk 123 957 110 336 13 621 Village attorney 200,000 166,722 33,278 Total general government 681,111 615,480 65,631 Public works 470,000 579 072 (109,072) Building planning and zoning 466,878 467,621 (743) Parks and recreation 223 207 213.704 9.503 7 Public safety 4,425,154 4,290,678 134,476 L Non departmental 534,500 505.700 28,800 Capital outlay Public works 5 000 4 266 734 Parks and recreation 11 500 1 044 787 (1 033 287) Public safety 157 727 472 440 (314 713) Non -departmental 1,482,901 154,228 1,328,673 1,657.128 1,675,721 (18,593) Debt service Principal 755 000 1 755 000 (1 000 000) Interest 441,461 483,101 (41,640) 1,196,461 2,238,101 (1,041,640) Total expenditures $ 9,654,439 $10,586,077 $ (931,638) 0011, Lob 22 C1-1 c C771 1--1 LC1 rri r in cti ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated m a manner similar to private business enterprises where the mtent is that the costs of providmg goods or services be financed or recovered primarily through user charges • Stormwater Utility System The stormwater utility system accounts for the construction and mamtenance 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 t J L _7 ELI (-] LJ C 1 LJ CT CA I -) E. I [U 3 Lai (TI VILLAGE OF KEY BISCAYNE, FLORIDA ENTERPRISE FUNDS COMBINING BALANCE SHEET L SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1994) cm L r L pa L 1544 ASSETS Current assets Cash and cash equivalents Investments Accounts receivable Interest receivable Total current assets Construction in progress Total assets LIABILITIES AND EQUITY Stormwater Utility System Solid Waste Fund Totals 1995 1994 $ 3 702 597 $109 284 $ 3 811 881 $ 5 104 000 5 104 000 44 649 44 649 158,206 158,206 8 964 803 153 933 9 118 736 1,263,487 1,263,487 333,754 $10,228,290 $153,933 $10,382,223 $333,754 Current Liabilities Accounts payable accrued liabilities $ 621 582 $ $ 621 582 $ Due to other funds 157 204 157,204 Total current liabilities 621 582 157 204 778 786 Bond anticipation notes 7,200,000 Total liabilities 7 821 582 157 204 Retained earnings (deficit) 2,406,708 (3,271) Total liabilities and equity $10,228,290 $153 933 7,200,000 7 978 786 2,403,437 150,000 150 000 150 000 183,754 $10,382,223 $333,754 -23 VILLAGE OF KEY BISCAYNE FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE EXPENSES AND CHANGES IN RETAINED EARNINGS FISCAL YEAR ENDED SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1994) Stormwater Utility Solid Waste System Fund Operating revenue $ 464 066 Operating expenses General and administrative costs Operating income (loss) Non -operating revenue (expense) Interest income Interest expense Total non operating revenues Totals 1995 $153 933 $ 617 999 8 259 157.204 165.463 455.807 (3,271) 452,536 221 023 (163,326) 57,697 221 023 (163.326) 57.697 0 U L 1994 $ 0 0 0 Income (loss) before transfers 513 504 (3 271) 510 233 Transfers in 1.709.450 1.709,450 325.671 Net income (loss) 2 222 954 (3 271) 2 219 683 325 671 Retained earnings (deficit) beginning 183.754 183 754 (141,917) Retained earnings (deficit) ending $2,406,708 $ (3,271) $2,403,437 $183.754 r u Li 0 24 c VILLAGE OF KEY BISCAYNE FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS P FISCAL YEAR ENDED SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1994) Cash flows from operatmg activities Operatmg income (loss) Stormwater Utility Solid Waste System Fund Totals 1995 1994 $ 455,807 $ (3,271) $452,536 $ Adjustments to reconcile operating income (loss) to net cash provided by operatmg activities Increase m Accounts receivable (44 649) (44 649) Interest receivable (158,206) (158 206) Increase (decrease) m Accounts payable 621 582 621 582 (26 507) Due to other fluids (150,000) 157,204 7,204 34,590 „, Total adjustments 313.376 112.555 425.931 8.083 Net cash provided by operatmg activities 769,183 109284 878.467 8.083 L Gd L Cash flows from non capital financing activities Transfers m Net cash provided by non capital financing activities 1,709,450 1.709,450 1,709,450 325,671 1,709,450 325,671 Cash flows from capital and relating fmancing activities Construction in progress (929 733) (929 733) (333 754) Proceeds from bond anticipation notes 7,200 000 7 200 000 Interest paid (163326) (163,326) Net cash provided (used) by capital and related fmancmg activities 6.106.941 6.106,941 (333,754) Cash flows from mvestmg activities Purchase of investments Interest received Net cash used by mvestmg activities (5 104 000) 221.023 (4,882,977) (5 104 000) 221,023 (4,882,977) Net mcrease m cash 3 702 597 109 284 3 811 881 Cash beginning Cash ending $3.702,597 $109.284 $3,811.881 $ 25 E CL) C 9 11111 Di 0,49 k. 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 I; i C 1 f I l E 1 E-1 1] C -1 C`1 C -1 [ 1 PT] E [ 3 E ) r, VILLAGE OF KEY BISCAYNE FLORIDA eLSCLI AGENCY FUNDS COMBINING BALANCE SHEET SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1994) Deferred Defined Compensation Contribution Plan Plan ASSETS Totals 1995 1994 Investments $312 371 $1 081 220 $1 393 591 $671 487 Loans receivable 60,279 60,279 10,600 $312,371 $1,141,499 $1,453,870 $682,087 LIABILITIES Deferred benefits payable $312371 $1,141,499 $1,453,870 $682,087 26- VILLAGE OF KEY BISCAYNE, FLORIDA DEFERRED COMPENSATION PLAN AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FISCAL YEAR ENDED SEPTEMBER 30 1995 ASSETS Investments LIABILITIES Deferred benefits payable Balance Balance October 1 September 30 1994 Additions Deletions 1995 $135,817 $177,901 $1,347 $312,371 $135,817 $177,901 $1347 $312,371 C C c 0 0 U 0 C 27 VILLAGE OF KEY BISCAYNE, FLORIDA DEFINED CONTRIBUTION PLAN AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FISCAL YEAR ENDED SEPTEMBER 30 1995 r Balance Balance October 1 September 30 1994 Additions Deletions 1995 ASSETS Investments $535 670 $589 752 $44 202 $1 081 220 Loans receivable 10,600 62,709 13,030 60 279 $546,270 $652,461 $57 232 $1,141.499 LIABILITIES Deferred benefits payable $546,270 $652,461 $57,232 $1,141,499 28 I - I I _,. d L) 1J f L7 �J =3 ELIC :.m.7 C, �J C i C�.. J r :.3 LJ U3 f 1 Fij GENERAL FIXED ASSETS ACCOUNT GROUP To account for fixed assets used for general government purposes L J L i t 1 C l E [ i F! J LT_ 1 Eli [i t=" l 44. VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE SEPTEMBER 30 1995 (WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1994) 1995 1994 General fixed assets Land $ 9 240 657 $ 9 238 317 Buildings 587 076 554 291 Improvements other than buildings 921 722 26 608 Furniture and fixtures 84 872 47 926 Equipment 2,061,892 1,617 459 Total general fixed assets $12,896,219 $11,484,601 Investment m general fixed assets by source General fund 141.0 1 $12,896,219 $11,484601 29 VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY SEPTEMBER 30 1995 Improvements Furniture Other Than and Land Buildings Buildings Fixtures Equipment Total General government $ $ $ 11 299 $43 620 $ 159 619 $ 214 538 Parks and recreation 9 240 657 904 186 124 330 10 269 173 Public safety 587.076 6.237 41.252 1,777.943 2.412,508 $9,240,657 $587,076 $921 722 $84,872 $2,061,892 $12,896,219 E C E I c C U r L 30 c VILLAGE OF KEY BISCAYNE, FLORIDA r rank r Oak ilezatio C flOP r" SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FISCAL YEAR ENDED SEPTEMBER 30 1995 Balance Balance October 1 September 30 1994 Additions Deletions 1995 General government $ 101 815 $ 112 723 $ $ 214 538 Parks and recreation 9 247 389 1 021 784 10 269 173 Public safety 2,135,397 277,111 2,412,508 $11,484,601 $1,411,618 $ - $12.896.219 31 LM• pd F_..... 1 t� J L .J r 7 f 7 f f 3 L.7 LJ Ci LIJ LLB GENERAL LONG-TERM DEBT ACCOUNT GROUP To account for the Village's long-term obligations a F4 l 1 13 11 J 1 l L_..1 C_ ] [Ti [Ti [Ti] [Ti [TiF-1 EA L 1 f I t I F-1 VILLAGE OF KEY BISCAYNE FLORIDA STATEMENT OF GENERAL LONG TERM DEBT SEPTEMBER 30 1995 (WITH COMPARATIVE TOTAL FOR SEPTEMBER 30 1994) 409 1995 1994 Amount to be provided for retirement of general long term debt $_8,774 169 General long term debt payable Bonds payable Loan from FEMA Compensated absences payable Total general long term debt payable ran I — u m $ 8 445 000 329 169 $ 8,774,169 $10,426,111 $ 9 200 000 1 000 000 226,111 $10,426,111 32 [n om r C.J L--1 [ -I f I" h STATISTICAL SECTION r a, 4 o 1 L J 1 ) L J II J F 3 U 11 Cu CI ru n FJ r• VILLAGE OF KEY BISCAYNE, FLORIDA h 6 — GENERAL GOVERNMENT EXPENDITURES BY FUNCTION Fiscal General Public Parks and Public Year Government Safety Recreation Works Total 1992 $1 468 000(' $ 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) 4 453 539 9 601 9220 782 007 19 053 562 1995 5 524 305 4 294 606 211 159 573 844 10 603 914 (1) Includes $783 280 Hurricane Andrew Expenses to 9/30/92 (2) Includes $1 251 264 Hurricane related expenses 10/01/92 through 9/30/93 (3) General government includes economic development building plannmg and zoning debt service capital outlay and non -departmental expenditures (4) Includes acquisition of land for $9 238 317 for the Village Green a park Note The Village s first year of operation was fiscal year 1992 Includes general fund only 33 VILLAGE OF KEY BISCAYNE, FLORIDA GENERAL GOVERNMENT REVENUES BY SOURCE Fiscal Property Fees and Utility Franchise Year Taxes Licenses Intergovernmental Taxes Fees Other Interest Total 1992 $ $ 15 766 $ 934 018 $ 979,236 $151 392 $ 23 276 $ 4 480 $2 018 I68 1993 3 536 480 L,458 733 2 485 979 1 212 084 625 815 169 429 121 676 9 610 196 1994 6 640 045 629 246 997 501 1 268 428 668 020 115 664 288 978 10 607 882 1995 6 820 807 674 420 1 056 680 1 257 179 652 844 73 200 369 540 10 904 670 Note The Village s first year of operation was fiscal year 1992 Includes general fund only i C L I L E E U U F L U C L 1 34 C VILLAGE OF KEY BISCAYNE, FLORIDA 64-01 PROPERTY TAX LEVIES AND COLLECTIONS Tax Fiscal Assessed Tax Total Percent Year (1) 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 r L- ) G) 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 35 VILLAGE OF KEY BISCAYNE, FLORIDA ASSESSED ACTUAL VALUE OF TAXABLE PROPERTY Net Assessed Fiscal 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 Source Dade County Property Appraisers Office El C 0 0 0 0 E U U L 7 J --1 -36 7 VILLAGE OF KEY BISCAYNE, FLORIDA PROPERTY VALUE CONSTRUCTION AND BANK DEPOSITS (000s) Residential Commercial Omitted Total Total Fiscal Permits N° of N2 of of Bank Year Issued Units Valuation Units Valuation Construction Depositsiii r C r Soo 1992 35 25 $ 638 483 10 $ 401 058 $ 1 039 541 $20 282 998 1993 1 737 1 633 26 822 424 104 4 383 673 31 206 097 18 146 647 1994 2 205 2 081 25 410 312 124 45 567 390 70 977 702 17 524 140 1995 2 857 2 568 33 820 503 289 2 099 661 35 920 164 17 938 762 (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 t 37 VILLAGE OF KEY BISCAYNE FLORIDA 6 UTILITY TAX REVENUE BY SOURCE Fiscal Fuel Year Electricity Telecommunications Gas Oil Water Total 1992 $676 919 $157 887 $35 552 $3 548 $105 830 $ 979 736 1993 857 002 199 308 24 184 4 708 126 882 1 212 084 1994 888 752 202 702 26 925 4 331 145 719 1 268 429 1995 875 704 186 780 38 130 3,920 152 645 1,257179 FRANCHISE FEE REVENUE BY SOURCE Fiscal Year Electricity Cable 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 c G L. U i U Q -38 1-1 (-7 F `1 C-"" i I F j f —1 F i r i F 1 f B F y F 3 E l f 1 f -�i -1 F 1 VILLAGE OF KEY BISCAYNE, FL ORIDA PROPERTY TAX R ATES DIRECT AND OVERLAPPING GOVERNMENTS Village of Key Biscayne Dade County State School District Debt Total Total Debt Total Fiscal Village Operating Service County SFWM D FIND State Operating Service School Year Mtllage Millage Millage Miliage Millage Mtllage Millage Mtllage Mtilage Mtllage Other Total 1992 2 280 7 305 1 139 8 444 547 052 599 9 023 505 3 445 9 528 24 296 1993 4 439 iii 7 305 830 8 135 597 052 648 9 283 640 1 101i`i 9 923 24 246 1994 4 101 7 253 817 $ 070 497 049 516 9 503 842 443 10 345 23 505 1995 3 800 6 828 789 7 617 547 040 587 9 373 1 0162 429 10 389 22 822 0) V illage established its own fire district effective October 1 1993 Source Dade Coun ty Property Appraisers Office 39 VILLAGE OF KEY BISCAYNE, FLORIDA E RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND PER CAPITA Net Ratio of Net Bonded Net Bonded Fiscal Assessed Bonded Debt to Assessed Debt Year Population Value 0» Debt Value Per Capita 1994 8 887 $1 560 057 130 $9 200,000 1995 8 894 1 741 921 584 8 445 000 0) From assessed actual value of taxable property (2) Net bonded debt represents revenue bonds 59% $1 035 48% 949 I u E u Li U L C U U L -40 E VILLAGE OF KEY BISCAYNE, FLORIDA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES OZon Ca 7 L tete 7 t I Fiscal Year Principal Interest (i) Total Debt Service (2) Total General Governmental Expenditures 1994 $ $194 989 $ 194 989 $19 053 562 1995 755 000 384 661 10 603 914 Excludes bond issuance and other costs Debt service on revenue bonds Includes general fund only 1 139 661 Ratio of Debt Service to General Governmental Expenditures 1 0% 107% 1 L_ 41 VILLAGE OF KEY BISCAYNE, FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30 1995 Taxpayer % of Total Taxable Assessed Valuation Valuation Ocean Club of Key Biscayne $38 676 886 2 19% Grand Bay Hotel Residence 33 231 454 1 88 Sonesta Beach Hotel 28 349 588 1 60 Fintvest Investment Et Al (Key Colony) 9 403 404 53 Key Biscayne Shopping Center 8 026 685 45 Galleria Mall 5 436 860 31 Florida Power & Light 4 723 788 27 Red Dragon Sands Ltd 4 410 513 25 C G Rebozo 4 242 244 24 Southern Bell 4,025,292 23 $140,526,714 7 95% Source Dade County Property Appraisers Office -42 E 0 0 E E E E E E E E E �I 0 i E VILLAGE OF KEY BISCAYNE, FLORIDA r a' 1 I L DEMOGRAPHIC STATISTICS POPULATION Estimates of Population by Age UNDER 18 YEARS 18 TO 64 YEARS 65 YEARS OR OLDER YEAR NUMBER PERCENT NUMBER PERCENT NUMBER PERCENT TOTAL 1990 1 646 19 5 684 64 1 524 17 8 854 Estimates of Population by Race ANGLO BLACK HISPANIC TOTAL 1990 5 028 36 3 790 8 854 INCOME * Per Capita Income ANGLO BLACK HISPANIC AVERAGE PER CAPITA 1990 $44 615 $24 577 $28 341 $37 629 UNEMPLOYMENT RATES**(Percent) 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Dade County 67 58 53 63 70 88 100 77 79 68 Village of Key Biscayne 3 8 3 6 3 6 3 1 * SOURCE Bureau of Census Income Division **SOURCE State Department of Labor -43- VILLAGE OF KEY BISCAYNE, FLORIDA MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30 1995 Date of Incorporation 1991 Form of Government Council Manager Area 1 2 Square Miles Miles of Streets 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 Average Daily Consumption 1 740 2 500 000 gallons Sewers Number of Customers 807 Fire Hydrants 122 Building Permits Issued 2 857 Recreation and Culture Number of Parks 2 Number of Libraries 1 (Operated by Dade County) Number of Tenms Centers 1 Number of Recreational Centers 1 Employees Full Time -44 81 L L E 0 G 0 E U U U Is U U U U U Iii E f SUPPLEMENTARY AUDITOR' S REPORTS SECTION L L t 1 t 1 [=J [ 1 [ _ 1 C""1 [ _7 f' f 1-21 [' J [ -'7 [ -1 L1 ) L tatdd rA r AC Rachlin Cohen & Holtz CERIIIIED PLBLIC ACCOUNTANTS & CONSULTANTS A Partnership Inclucbn Professional Assoc' bons Report of Independent Certified Public Accountants on Internal Control Structure Based on an Audit Performed m Accordance with Government Auditing Standards To the Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Flonda (the Village ) as of and for the year ended September 30 1995 and have issued our report thereon dated January 25 1996 We conducted our audit m accordance with generally accepted auditing standards Government Auditing Standards issued by the Comptroller General of the United States and the provisions of Office of Management and Budget (OMB) Circular A 128 Audits of State and Local Governments Those standards and OMB Circular A 128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement The management of the Village is responsible for establishing and maintaining an internal control structure In fulfilling this responsibility estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures The objectives of an internal control structure are to provide management with reasonable but not absolute assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management s authorization and recorded properly to permit the preparation of general purpose financial statements m accordance with generally accepted accounting pnnciples Because of inherent limitations in any internal control structure errors or irregularities may nevertheless occur and not be detected Also projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate In planning and performing our audit of the general purpose financial statements of the Village for the year ended September 30 1995 we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure Accordingly we do not express such an opinion. -45 One Southeast Thud Avenue Tenth Floor Miami Honda 33131 Dade (305) 377 4228 Fax (305) 377 8331 700 Southeast Third Avenue Thud Floor Ft Lauderdale Florida 33316 Broward (954) 5251040 Fax (9o4) 525 2004 Math fSumm Internal nalAssoc' tes In nth Eh mpnn p Iahe throughout the Id t Member fth Amencanlnshtut EC tifi dPubh Accountant De Mace Thins for ceSect amniaPnv t C mpam a esP t Sect M mber fth Fl d Institute fC hh dPubh Accountants n 11 t'" J Fri CA ru ci t"_J tx") L = ci t ~' ] t-'] ) rf pEaDi To the Honorable Mayor and Village Council Village of Key Biscayne Florida Page Two Our consideration of the mternal control structure would not necessarily disclose all matters m 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 m amounts that would be material m relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees m the normal course of performing their assigned functions We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above However we noted certain matters that we reported to management in a separate schedule accompanying this report (page 58) This report is intended for the information of the Mayor Village Council management and the Auditor General of the State of Florida However this report is a matter of public record and its distribution is not limited Miami Florida January 25 1996 r - j1 L. r -46 rri 1-1 €�J 7 ci r--,1 ran L., r .W ri— II I - r CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A Partnership Including Professional Associations Report of Independent Certified Public Accountants on Compliance with Laws and Regulations Based on an Audit Performed in Accordance with Government Auditing Standards To the Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village ) as of and for the year ended September 30 1995 and have issued our report thereon dated January 25 1996 We conducted our audit in accordance with generally accepted auditing standards Government Auditing Standards issued by the Comptroller General of the United States and the provisions of Office of Management and Budget (OMB) Circular A 128 Audits of State and Local Governments Those standards and OMB Circular A 128 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements Compliance with laws regulations contracts and grants including state grants and aids appropriations applicable to the Village is the responsibility of the Village s management As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement we performed tests of the Village s compliance with certain provisions of laws regulations contracts and grants However the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions Accordingly we do not express such an opinion The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards This report is intended for the mfomiation 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 g t- di,- d gl i%/ Miami Florida January 25 1996 -47 One Southeast Third Avenue Tenth Floor Miami, Ronda 33131 Dade (30o) 377-4728 Fax (30o) 377 8331 700 Southeast Third Avenue Third Floor Ft.Lauderdale Honda 33316 Broward (954) 525-1040 Fax (954) 025-2004 r 1 L_ Member f Summit Inter trial 5s tes Inc w tli ffi mpnnopel hes tluou pout the world Member fth Amer anlnshtut fCertfied Publ A infant Ih for SEC tit S h andel , to Companies Private Seth n. Memb fthe Fl d Institute fC h5 dPubh Account is 1 1_.1 L -.J L F J L Lei C r Rachlin Cohen & Holtz CERIIFILD PUBLIC ACCOUNTANTS & CONSULTANTS AP tnerslup Includm Professional Assoc bons Management Letter m Accordance with the Rules of the Auditor General of the State of Florida To the Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village ) as of and for the year ended September 30 1995 and have issued our report thereon dated January 25 1996 We conducted our audit in accordance with generally accepted auditing standards and GovernmentAudznng Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement In connection with our audit of general purpose financial statements of the Village for the year ended September 30 1995 we report the following in accordance with Chapter 10 550 Rules of the Auditor General Local Government Entuy Audzts which requires that this report specifically address but not be Minted to the matters outlined in Rule 10 554(1)(f) 1 No irregularities were reported m the preceding annual financial audit 2 The Village during fiscal 1995 was not in a state of financial emergency as defined by Florida Statutes r 218 503(1) I{ L 3 Recommendations made m the current and preceding annual financial audit have been addressed on page 58 4 During the course of our audit nothmg came to our attention that caused us to believe that the Village a Was in violation of any laws rules or regulations b Made any illegal or improper expenditures c Had improper or inadequate accounting procedures d. Failed to record financial transactions which could have a material effect on the Village s general purpose financial statements e Had other inaccuracies irregularities shortages or defalcations -48 One Southeast Third Avenue Tenth Floor Miami Florida 03131 Dade (305) 377 4228 Fax (305) 077 8331 700 Southeast Third Avenue Third Floor Ft Lauderdale Honda 33316 Broward (954) 5251040 Fax (9a4) 525 2004 Member fsurmmtIntern tonal As tes Inc th fficesmpnn'pal hes through utth Id \I tab tth Amenaninshhit of Sled Pubh Accountants Ain for SEC Peach Se hon and th t Campmates teSchon Membe fthe FI d Institute fCeehf dPubic Accounta is u 1a J l [ 1 E. -7 L rtwv To the Honorable Mayor and Village Council Village of Key Biscayne Florida Page Two 5 The annual financial report for the year ended September 30 1995 has been filed with the Department of Bankmg and Finance pursuant to Section 218 32 Flonda Statutes and is in agreement with the audited fmancial statements of the same period 6 The Village was mcorporated by Laws of Flonda 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 ;s not limited Mramy Flonda January 25 1996 adz. 444, # 24es -49 1". Cal3 © Liti C... s] Lf1 f i tr i G l E L CIA L'4 ,9104 Rachlin Cohen & Holtz CERTIFIED PLBLIC ACCOUNTANTS & CONSULTANTS A Partnership Incluchn Profess onal Associations Report of Independent Certified Public Accountants on Schedule of Federal and State Financial Assistance To the Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village ) as of and for the year ended September 30 1995 and have issued our report thereon dated January 25 1996 These general purpose financial statements are the responsibility of the Village s management Our responsibility is to express an opinion on these general purpose financial statements based on our audit We conducted our audit in accordance with generally accepted auditing standards Government Auditing Standards issued by the Comptroller General of the United States and the provisions of Office of Management and Budget (OMB) Circular A 128 Audits of State and Local Governments Those standards and OMB Circular A 128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement An audit includes examining on a test basis evidence supportmg the amounts and disclosures m the general purpose financial statements An audit also mcludes assessmg the accounting prmciples used and significant estimates made by management as well as evaivatmg the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinion Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City taken as a whole The accompanying Schedule of Federal and State Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements The information in that schedule has been subjected to the auditing procedures applied m the audit of the general purpose financial statements and m our opinion is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole l 2 Miami Florida January 25 1996 50 - One Southeast Third Avenue Tenth Floor Miami Florida 33131 Dade (305) 377 4228 Fax (305) 377 8331 700 Southeast Thud Avenue Thrd Floor Ft Lauderdale Florida 33316 Broward (954) 52o 1040 Fax (954) 525 2004 Mmber fSummt Internet nalAs rates In with feces mpmc pal ties tlungh tth Id Member fth AmencanlnsMute EC tad Pubb A untantsD monk SEC Pr t Secuonand the vateC mpam P veteS t Member f then da lrehtut f Certified P bh A countant ® [la Ca 17 f J L.4 1_-J L.) LI J L_i [. J VILLAGE OF KEY BISCAYNE, FLORIDA SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE FISCAL YEAR ENDED SEPTEMBER 30 1995 Federal Grantor/Pass Through CFDA Grant/Contract (1-‘ Grantor Program Title N° N" Expenditures Federal Nonmajor Programs U S Small Business Administration Pass through Florida Department of Agriculture and Consumer Services 1993 SBA National Small Business Grant N/A SBA 37 1974 $ (1) U S Department of Agriculture Forest Service Pass through Flonda Department of Agriculture and Consumer Services Florida Urban and Community Forestry N/A 93 80 1969 19 918 r L. L U S Department of Justice Drug Control and Systems Improvements U S Department of Interior National Park Service Pass through Honda Department of Environmental Protection Land and Water Conservation 16 579 3 917 (2) DEP L-354 N/A LWCF 12 00354 200.000 (3) Total federal financial assistance expended 223.835 State Programs Hurricane Recovery and Rebuildmg Trust Fund 94 EO 2F 11 23 02 025 026 Florida Department of Environmental Protection Recreation Development Assistance Program F96068 166 406 Total state financial assistance expended 166,406 Total federal and state financial assistance expended $390,241 (4) (1) Expenditures were incurred m FY 94 amounting to $69 975 Grant award with matching was $63 194 (2) Actual expenditures in FY 95 were $4 296 Grant award was for $3 917 (3) Actual expenditures m FY 95 were $1 139 569 Grant award with matching was $200 000 (4) Grant was for recovery of lost revenues Grant amount for FY 95 was $190 000 51 Cam] ® CM CIO® Q C = C C) r< P r� L Rachlin Cohen & Holtz CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A Partnership Includm Professional Associatrons Report of Independent Certified Public Accountants on the Internal Control Structure used In Administering Federal Financial Assistance Programs To the Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the 'Village 5 as of and for the year ended September 30 1995 and have issued our report thereon dated January 25 1996 We have also audited the compliance of the Village of Key Biscayne Florida with requirements applicable to major federal financial assistance programs and have issued our report thereon dated January 25 1996 We conducted our audit in accordance with generally accepted auditing standards Government Auditing Standards issued by the Comptroller General of the Umted States, and the provisions of Office of Management and Budget (OMB) Circular A 128 Audits of State and Local Governments Those standards and OMB Circular A 128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and whether the City complied with laws and regulations, non-compliance with which would be material to a major federal financial assistance program In planning and performing our audit for the year ended September 30 1995 we considered the internal control structure of the Village in order to determine our auditing procedures for the purpose of expressing our opinions on the general purpose financial statements of the Village and on the compliance of the Village with requirements applicable to major programs and to report on the internal control structure in accordance with OMB Circular A 128 This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicableto federal financial assistance programs We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated January 25 1996 The management of the Village is responsible for establishing and maintainmg an internal control structure In fulfiIlmg 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 m accordance with generally accepted accounting principles and that federal fmancial assistance programs are managed in compliance with applicable laws and regulations Because of inherent limitations in any internal control structure errors irregularities, or mstancesof noncompliance may nevertheless occur and not be detected 52 One Southeast Third Avenue Tenth Floor Miami Florida 33131 Dade (005) 377 4228 Fax (305) 377 8331 700 Southeast Third Avenue Third Floor Ft Lauderdale Florida 30316 Broward (954) 5251040 Fax (954) 525 2004 Memb fSummR Internet nal Assoc tee Inc th tficesmpnn pal h througho tth wild Memb f th Am can Institute IC hfi d Publ Accountants D vur f SEC P ch Sects and th P t C mpames Pn t Section Member fth Flo dahetitute fCertifier P bh A untants ® LI= ® L —J e ci1=1 r .3 E. LL ) (� `aLTA.a EA La (17 To the Honorable Mayor and Village Council Village of Key Biscayne Florida Page Two Also projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories Accounting Controls Cash Receivables Revenues and Expenditures General Requirements Political Activity Davis Bacon Act Civil Rights Cash Management Federal Financial Reports Allowable Costs/Cost Principles Drug free Workplace Act and Administrative Requirements Specific Requirements Types of services allowed or not allowed eligibility matching level of effort, and/or earmarkmg 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 ta- assessed control risk During the year ended September 30 1995 the Village of Key Biscayne Florida expended 100% of its total federal financial assistance under major federal financial assistance programs We performed tests of controls as required by OMB Circular A 128 to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detectmg 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 m 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 mternal control structure policies and procedures used in admimstermg 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 r that noncompliance withhlaws and regulations that would bematerial toafederal financial assistance program L 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 mvolvmg the internal control structure and its operations that we consider to be material weaknesses as defined above 53 ® [_:.7 ® C = ® C2:3 r w p I an C r c L r To the Honorable Mayor and Village Council Village of Key Biscayne Florida Page Three This report is intended for the information of the Mayor Village Council management the Auditor General of the State of Florida and grantor agencies However this report is a matter of public record and its distribution is not limited Miami Florida January 25 1996 54 r LseJ I L t C J CO ® L t.:,. J L AI La rem r ikvid Rachlin Cohen & Holtz CER11FILD PUBLIC ACCOUNTANTS & CONSULTANTS A Partnersiup In ludang Professional Assonato s Report of Independent Certified Public Accountants on Compliance with General Requirements Applicable to Federal Financial Assistance Programs To the Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village ) as of and for the year ended September 30 1995 and have issued our report thereon dated January 25 1996 We have applied procedures to test the Village s compliance with the followmg requirements applicable to each of its federal financial assistance programs which are identified m the Schedule of Federal and State Financial Assistance for the year ended September 30 1995 political activity Davis Bacon Act civilnghts cashmanagement federal financial reports allowable costs/costprmciples drugfree workplace and administration requirements Our procedures were limited to the applicable procedures described m the Office of Management and Budget s Compliance Supplement for Single Audits of State and Local Governments Our procedures were substantially less m scope than an audit the objective of which is the expression of an opinion on the Village s compliance with the requirements listed m 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 m 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 distnbution is not limited Miami Florida January 25 1996 55 One Southeast Third Avenue Tenth Floor Miami Florida 33101 Dade (305) 3774228 Fax (30s) 377 8331 700 Southeast Third Avenue Third Floor FtLauderdale Florida 33316 Broward (954) 5251040 Fax (954) 525 2004 tw Member f Sumartlnte national As mates lnc th fh in principal ti t rougho ttlla ]d Memb fthe Am canlnshtute of Cehfi dPubh A countants Earn io f SECP ach S h and th Pnv t C mpames Pn to Section Member fth Honda Institute fCerhfredP Ni A mutants c C C _] C. Z. J Cam.] =1. r L CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A Partn stop Including Professional Asso mhons Report of Independent Certified Public Accountants on Compliance with Specific Requirements Applicable to Major Financial Assistance Programs To the Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village ) as of and for the year ended September 30 1995 and have issued our report thereon dated January 25 1996 We have also audited the Village s compliance with the requirements governing types of services allowed or unallowed eligibility matching level of effort or earmarking reportmg claims for advances and reimbursements and amounts claimed or used for matching that are applicable to each of its major financial assistance programs which are identified in the accompanying Schedule of Federal and State Financial Assistance for the year ended September 30 1995 The management of the Village is responsible for the Village s compliance with those requirements Our responsibility is to express an opinion on compliance with those requirements based on our audit We conducted our audit of compliance with those requirements in accordance with generally accepted auditmg standards Government Auditing Standards issued by the Comptroller General of the Umted 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 opimon In our opinion the Village complied in all material respects with the requirements governing types of services allowed or unallowed eligibility matching level of effort or earmarking reporting claims for advances and reimbursements and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs for the year ended September 30 1995 This report is intended for the information of the Mayor Village Council management the Auditor General of 04. the State of Florida and grantor agencies However this report is a matter of public record and its distribution its not limited Miami Florida January 25 1996 56 One Southeast Third Avenue Tenth Floor Miami Florida 33131 Dade (305) 3774228 Fax (305) 377 8331 700 Southeast Third Avenue Third Floo Ft Lauderdale Florida 33316 Broward (954) 5251040 Fax (954) 525 2004 Member Burnout Intern fonalA t In with fit mpnn p tluoughout the ii Menthe fthe Amen aninshtute fCertified Pbh Acountants Diu fox SEC ch Sch and the Pn t Compact Pn t Section Menlo file Fl td Institute fC dab dPubh A unto is ® ® L1 EJ C 115, CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A Partnership Ind ding P ofesstonal Associations Report of Independent Certified Public Accountants on Compliance with Specific Requirements Applicable to NonMajor Federal Financial Assistance Program Transactions To the Honorable Mayor and Village Council Village of Key Biscayne Florida We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the Village ) as of and for the year ended September 30 1995 and have issued our report thereon dated January 25 1996 In connection with our audit of the general purpose financial statements of the Village and with our consideration of the Village s control structure used to administer financial assistance programs as required by Office of Management and Budget (OMB) Circular A 128 Audits of State and Local Governments we selected certain transactions applicable to certam nonmajor financial assistance programs for the year ended September 30 1995 As required by OMB Circular A 128 we have performed auditing procedures to test compliance with the requirements governing types of services allowed unallowed matching and claims for reimbursement that are applicable to those transactions Our procedures were substantially less m scope than an audit the objective of which is the expression of an opinion on the Village s compliance with those requirements Accordmgly we do not express such an opinion We respect to the items tested the results of those procedures disclosed no matenal instances of noncompliance with the requirements listed m 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 January 25 1996 57 One Southeast Third Avenue Tenth Floor Miami Florida 33131 Dade (305) 3774228 Fax (305) 377 8331 700 Southeast Third Avenue Third Floor Ft Lauderdale Florida 33316 Broward (954) 5251040 Fax (954) 525-2004 r Member fSwami late tonal As tes Irmwithoffi mpnn p 1 ti througho till cold M mb fth Ante an Institute f Cerhfi d Publ A countant Ili f SEC P act S ton and th En t C mpames Pn teSection Memb f th FI d Institute fCahfied Pubh A mutants VILLAGE OF KEY BISCAYNE, FLORIDA RECOMMENDATION TO IMPROVE THE VILLAGE S ADMINISTRATIVE AND ACCOUNTING CONTROLS c+; Luue P• I b oma i L. FISCAL YEAR ENDED SEPTEMBER 30 1995 Prior Year Recommendation Not Implemented in Current Year Compensated Absences The recordkeeping function for compensated absences (vacation and sick leave) is handled by the responsible departments (general employees police and fire) The recordkeeping for the general employees was inadequate as there was no written authorization for used vacation and sick leave time We recommend that the Village require written authorization for vacation and sick leave time approved by supervisory personnel and mamtam those leave records in the personnel files We also recommend the Village review the recordkeepmg function of the police and/or fire departments and adopt similar procedures This matter also applies to the current year Managements Response The Village has established policies to ensure that written authorization for vacation and sick leave used by the employee is obtained and that the leave records are maintained m their personnel file 58 U±: 7 rJ E ] "3 C 711 CI '-1 ) C 7 ta.7 ® c-i ® CID r-7) °�]