HomeMy Public PortalAboutComprehensive Annual Financial Report Fiscal Year Ended 09-30-96.tifSiCva
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VILLAGE OF KEY BISCAYNE FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30 1996
Prepared by
THE FINANCE DEPARTMENT
Mai
VILLAGE OF KEY BISCAYNE FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30 1996
TABLE OF CONTENTS
0,1762.
PAGE
I INTRODUCTORY SECTION
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting vin
Village Officials ix
Village Organization Chart x
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II FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS OVERVIEW)
Combined Balance Sheet All Fund Types and Account Groups 2
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances All Governmental Fund Types 3
Statement of Revenues and Expenditures Budget and
Actual General Fund 4
Combined Statement of Revenues Expenses and Changes in
Retained Earnings Enterprise Funds 5
Combined Statement of Cash Flows Enterprise Funds 6
Notes to General Purpose Financial Statements 7
7 COMBINING INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
GENERAL FUND
Comparative Balance Sheets 20
Schedule of Revenues and Expenditures Budget and Actual 21
ENTERPRISE FUNDS
Combining Balance Sheets 23
Combining Statements of Revenues Expenses and Changes in
Retained Earnings 24
Combining Statements of Cash Flows 25
AGENCY FUNDS
Combining Balance Sheets 26
Statement of Changes in Assets and Liabilities
Deferred Compensation Plan 27
Statement of Changes in Assets and Liabilities
Defined Contribution Plan 28
VILLAGE OF KEY BISCAYNE, FLORIDA
TABLE OF CONTENTS
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 in General Fixed Assets By
Function and Activity 31
GENERAL LONG TERM DEBT ACCOUNT GROUP
Statement of General Long Tenn Debt 32
III STATISTICAL SECTION
General Governmental Expenditures by Function 33
General Governmental Revenues By Source 34
Property Tax Levies and Collection 35
Assessed Actual Value of Taxable Property 36
Property Value Construction and Bank Deposits 37
Utility Tax Revenue By Source Franchise Fee Revenue by Source 38
Property Tax Rates Direct and Overlapping Governments 39
Ratio of Net Bonded Debt to Assessed Value and Per Capita 40
Ratio of Annual Debt Service Expenditures for Net Bonded Debt
to General Governmental Expenditures 41
Principal Taxpayers 42
Demographic Statistics 43
Miscellaneous Statistical Data 44
IV SUPPLEMENTARY AUDITOR S REPORTS SECTION
Report of Independent Certified Public Accountants on Internal
Control Structure Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
45
Report of Independent Certified Public Accountants on Compliance
with Laws and Regulations Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 47
Management Letter in Accordance with the Rules of the Auditor
General of the State of Florida 48
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Report of Independent Certified Public Accountants on Schedule
of Federal and State Financial Assistance 50
VILLAGE OF KEY BISCAYNE FLORIDA
TABLE OF CONTENTS
PAGE
IV SUPPLEMENTARY AUDITOR S REPORTS SECTION
Schedule of Federal and State Financial Assistance 51
Report of Independent Certified Pubhc Accountants on Internal
Control Structure Used m Administering Federal Financial
Assistance Programs
52
Report of Independent Certified Public Accountants on Comphance
with General Requirements Applicable to Federal Financial
Assistance Programs 55
Report of Independent Certified Public Accountants on Compliance with
Specific Requirements Applicable to Major Financial Assistance Programs 56
Report of Independent Certified Public Accountants on Compliance
with Specific Requirements Applicable to NonMajor Federal Financial
Assistance Program Transactions 57
Schedule of Findings 58
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INTRODUCTORY SECTION
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VQag C al
Jh FFe My
Mchl Pd van V My
M m F d
G go y C Han
H gh T 0 Reilly
Ch t na Dearing R d
B Sm
Vllag M ger
C Sam I Kss ge
Office of the Village Manager
January 31 1997
Honorable Mayor Members of the Village Council and the Citizens of the Village of Key Biscayne
The Comprehensive Annual Financial Report of the Village of Key Biscayne for the fiscal year ended
September 30 1996 is hereby submitted Responsibility for both the accuracy of the data and the
completeness and fairness of the presentation, mcluding all disclosures rests with the Village To the
best of our knowledge and belief, the enclosed data is accurate in all matenal respects and is reported
m a manner designed to fairly present the financial position and results of operations of the various
funds and account groups of the Village All disclosures necessary to enable the reader to gain an
understanding of the Village s financial activities have been included
The Comprehensive Annual Financial Report (CAFR) is presented in four sections The introductory
section includes this transmittal letter the Village s orgamzational chart and a list of pnncipal
officials The financial section includes the report of the independent certified public accountants on
the general purpose financial statements and the required notes and the individual fiind 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 Comphance 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
appointmg 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
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85 West McIntyre Street Key Biscayne, Florida 33149 (305) 365 5514 Fax (305) 365 8936
MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMUNITY ENVIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT
Location
Key Biscayne is a barrier island situated between the Atlantic Ocean to the east and Biscayne Bay to
the west. The island is located just south of Virginia Key a separate island connected to the mainland
south of downtown Miami by the Rickenbacker Causeway The 1990 U S Census population was
8 854 and another 4 000 reside on the island seasonally
The Village is an incorporated municipality of approximately 1 25 square miles It is located on Key
Biscayne and is bordered to the north by Crandon Park a 960 acre park administered by Dade
County and to the south by Bill Baggs Cape Florida State Recreation Area, a park of approximately
600 acres
Dislocation event and its impact
On Monday August 24 1992 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
landsrapmg Wind did additional damage to structures and vegetation As of September 30 1996
the close of the fiscal year which is the subject of this report virtually all of the work authonzed by
FEMA has been completed However while most of the applicable fiindmg has been received only
some of the claims have been finalized After the claims have been finalized and outstanding balances
received, a three year period commences during which all records must be maintained and available
for audit For this reason, an appropriate reserve for grant audits has been established to be
maintained until the audit period is concluded
Maior Activities
During the initial year of incorporation most services were provided by Dade County The Village
Police Department was activated on March 1 1993 and the Village Fire Rescue Department was
activated on October 1 1993 On January 1 1995 the Village took over the responsibility of
providing solid waste and recycling collection services to single family residences for $199 00
annually compared to the $399 00 previously charged by Metro Dade County Department of Solid
Waste Management
Debt Administration
The Village of Key Biscayne has two outstanding obligations 1) a 10 year $9 200 000 Land
Acquisition Revenue Bond which was issued on December 20 1993 at 4 36% from Northern Trust
Bank to purchase the land for the Village Green The balance on September 30 19% was
$7 660 000 2) A $7 200 000 Bond Anticipation Note for two years at 4 89% from the Key
Biscayne Bank and First Union National Bank for stormwater infrastructure Permanent financing
will be obtained when construction is completed
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FINANCIAL INFORMATION
Accounting System, Internal and Budgetary Control
The Village s accountmg records for governmental funds operations are maintained on a modified
accrual basis with revenues bemg recorded when available and measurable and expenditures bemg
recorded when the services or goods are received and the liabilities are incurred
Budgetary control is maintained at the department level Expenditures that could result in an
overextended balance are not released until additional appropriations are made available
Internal accounting controls have been designed to provide reasonable but not absolute assurance
regardmg, afeguardmg of assets agamst loss from unauthonzed use or disposition and the reliabihty
of financial records for preparing financial statements and maintaining accountabihty 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 mternal control evaluations occur within the above framework We believe the Village s internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions
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Reporting Entity and its Services
The Village includes for financial reporting purpos- m conformance with Governmental Accounting
Standards Board Statement Number 14 all funds and account groups for which the Village is
financially accountable
The Village currently provides services associated with the following departments
Building Zoning and Planning Department Emergency Services Department Recreation
Department Public Works Department Finance and Administrative Services Department
Office of the Village Clerk and Office of the Village Manager
Reporting Standards
The form and content of the Comprehensive Annual Financial Report and the accompanying financial
statements and statistical tables were prepared m conformance with standards set forth by
1 Governmental Accounting Standards Board (GASB)
2 Financial Accounting Standards Board (FASB)
3 The Auditor General State of Florida
4 The Charter of the Village of Key Biscayne
5 The Government Fmance Officers Association of the Umted States and Canada
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General Government Functions
The General Fund is the general operating fund of the Village General tax revenues and other
receipts that are not allocated by law or contractual agreement to some other fund are accounted for
in this fund General operating expenditures fixed charges and capital improvement costs not
accounted for through other funds are accounted for in the General Fund
The amount of General Fund revenues and expenditures from vanous sources are shown in the
following schedule
REVENUES
Sources
Utility Taxes
Franchise Fees
Property Taxes
Intergpvernmental
Licenses and Permits
Charges for Services
Impact Fees
Donations
Other
Interest
Hurricane Loss Grant
Grants
FY 1996 FY 1995
$1294 486 $ 1 257 179
638 096 652 844
6 486 019 6 820 807
790 403 788 062
430 208 351 152
168 800 73 268
-0- 250 000
237 856 8 000
2 544 65 200
280 570 369 540
Revenue 267 682 190 688
778,639 77,930
Total Revenue $11 416 303 $10.904 670
EXPENDITURES (Budgetary Basis)
Function
FY 1996 FY 1995
General Government $605 713
Public Works 544 965
Building Zomng & Planning 593 635
Parks and Recreation 237 775
Public Safety 4 821 253
Debt Service 1 136 089
Non -Departmental 425 256
Transfer to Capital Improv Fund 1,041,836
Total Expenditures & Transfers $9 406,522
$ 615 480
579 072
467 621
213 704
4 290 678
2 238 101
505 700
L675,721
$ 10 586 077
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Capital Proiects Fund
Dunng 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 Protects 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 engineenng 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 completed in early 1996
The second segment estimated to cost $7 200 000 covers the area from Crandon Boulevard and
West to Biscayne Bay It was begun in September 1995 and completion is anticipated by May 1997
Fiduciary Funds
Fiduciary Funds are Trust and Agency Funds estabhshed for the purpose of accountmg for assets held
in trustee capacity or as an agent for individuals private organizations and other government As of
September 30 1996 the following were recorded as Fiduciary Funds
Trust and Agency Funds
A section 401(a) money purchase plan is offered by the Village for its employees and was created m
accordance with Internal Revenue Code Section 401 The plan managed by independent plan
administrators permits employees to defer a portion of their salary until future years The 401 (a)
fund had $1 831 250 in investments for the fiscal year ended September 30 1996
In addition to the 401(a) plan employees may contnbute to a section 457 plan Employee
investments in the section 457 plan as of September 30 1996 were $558 989
General Fixed Assets
m The General Fixed Assets of the Village are those assets used in the performance of general
governmental functions In accordance with generally accepted accounting pnnciples for local
governments the Village does not record depreciation on general fixed assets nor does it record
r roads bndges curbs and gutters streets and sidewalks drainage systems and similar assets that are
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immovable and of value only to the Village Assets are recorded at cost except donations which are
recorded at fair market value at the date of receipt As of September 30 1996 the general fixed
assets acquired amount to $17 100 597 Major additions for FY 1995 96 are donated land for the
Beach park, public safety equipment and vehicles
Cash Management
The Village had several cash management vehicles in this fiscal year and an investment account or
money market account m the Key Biscayne Bank under an agreement which provided for overnight
investments of both the investment account and the operating account
The Village also has an investment with the Flonda Local Government Trust Fund administered by
the State Board of Administration, which as of September 30 1996 had a balance of $116 712 in the
General Fund and $5 982 for the Law Enforcement Trust Fund The Village purchased a one year
7 25% $1 000 000 Treasury Note in January 1995 which matured in January 1996
Risk Management
The Village is insured with the Flonda Municipal Insurance Trust for liability and property coverage
and with the Florida Municipal Self Insurance Fund for Workers Compensation coverage The
liability limit under the policy is $5 000 000 Employee Life/Insurance is with Standard Insurance
Company Long Term Disability for all bmployees and state mandated additional coverages for
police officers and firemen is with the Hartford Insurance Company
Independent Audit
Provisions in the Flonda Statues and the Village Charter require an annual financial audit of the books
of account financial records and transactions of all admimstrative depai (merits of the Village by
Independent Certified Public Accountants This requirement has been complied with and the
auditor s reports have been included in this CAFR.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States an Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Village for its Comprehensive
Annual Financial Report for the Fiscal Year ended September 30 1995
The Government Finance Officers Associate of the United States of Canada (GFOA) also presented
an award for Distinguished Budget Presentation to the Village of Key Biscayne for its annual budget
for the fiscal year begmnmg October 1 1995
In order to receive these awards a governmental umt must publish an easily readable and efficiently
organized CAFR and a budget document that meets program criteria as a policy document as an
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operations guide as a financial plan and as a communications device
The awards are vand for a penod of one year only We believe our current CAFR and budget
continue to conform to program requirements and we have subnutted them to the GFOA to
determine their eligibility for Fiscal Year ended September 30 1996
ACKNOWLEDGMENTS
The preparation of this report could have not been accomplished without the efficient and dedicated
services of the staff of the Village
We express our appreciation to all members of the staff who assisted and contributed to the
preparation of this report A special vote of thanks and appreciation is also extended to the firm
Rachhn Cohen & Holtz for their professional approach and high standards m conduct of their
independent audit of the Village s financial records and transactions
Respecfully submitted
C Samuel Kis nger
Village Manager
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Jack Neustadt
Director of Finance and Administrative Services
CSKIJNfadv
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Key Biscayne,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1995
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting
its, Oft0e
Executive Director
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VILLAGE OF KEY BISCAYNE, FLORIDA
VILLAGE OFFICIALS
SEPTEMBER 30 1996
VILLAGE COUNCIL
John F Festa, Mayor
John Wald, Vice Mayor Michele Padovan
Raul Llorente Betty Q Sime
Hugh T O'Reilly Raymond P Sullivan
VILLAGE MANAGER
C Samuel Kissinger
VILLAGE CLERK
Conchita Alvarez
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VILLAGE ATTORNEY
Weiss, Scrota & Helfman, P A
FINANCE DIRECTOR
Jack Neustadt
VILLAGE AUDITORS
Rachltn Cohen & Holtz
Certified Public Accountants
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VILLAGE OF KEY BISCAYNE, FLORIDA
ORGANIZATION CHART
VOTER
VILLAGE
COUNCIL
LOCAL
1
PLANNING I
AGENCY 1
I
VILLAGE
CLERK
SPECIAL
MASTERS
VILLAGE
MANAGER
H
II
ASSISTANT
TO
MANAGER
II I
11
VILLAGE
ATTORNEY
1 DEPARTMENT
IOF BUILDING
ZONING AND
1 PLANNING
H BUILDING
I 1
H ZONING'
1
I-] PLANNING I
I
If DEPARTMENT J
IIOF EMERGENCY'
II SERVICES 11
I 1
Ii
1I POLICE I
I i
CODE 1
ASSISTANCE]
I 1
FIRE
RESCUE
{
HI
SPECIAL'
EVENTS 1
I
I SPORTS I
H &
'ATHLETICS'
I I
LIPROGRAMS/I
TOURS
1 I
DEPARTMENTII DEPARTMENT II DEPARTMENT 1
OF 1 OF 11 OF FINANCE 1
RECREATIONIIPUBLIC WORKS11 AND ADMIX 1
1 11 SERVICES 1
I 1
I
II VILLAGE' 11 FINANCE/ 1
-jENGINEERI H ACCOUNTINGI
I
11
I CONTRACT II
1
HSUPERVISOR!IIPERSONNEL'
1H BENEFITS]
i I
RI
1-1 .MANAGEMENTE
1
I 1
!REFUSE
}-HCOLLECTION I
IS RECYCLING 1
1 -{MAINTENANCE I
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FINANCIAL SECTION
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CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Pazfiersiup Including Professional Associations
REPORT OF INDEPENDENT CERI'DTED PUBLIC ACCOUNTANTS
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
We have audited the accompanying general purpose financial statements of the Village of Key Biscayne Flonda
(the Village) as of and for the year ended September 30 1996 as listed in the table of contents These general
purpose financial statements are the responsibility of the Villages management Our responsibility is to express
an opinion on these general purpose financial statements based on our audit
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing
Standards issued by the Comptroller General of the United States Those standards require that we plan and
perform the audit to obtam reasonable assurance about whether the general purpose financial statements are free of
material misstatement. An audit includes examining on a test basis evidence supporting the amounts and
disclosures in the financial statements An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation We
believe that our audit provides a reasonable basis for our opinion
In our opinion the general purpose financial statements referred to above present fairly m all material respects
the financial position of the Village as of September 30 1996 and the results of its operations and cash flows of its
proprietary fund types for the year then ended in conformity with generally accepted accounting pnnciples
In accordance with Government Auditing Standai ds we have also issued a report dated December 5 1996 on our
consideration of the Village s internal control structure and a report dated December 5 1996 on its compliance
with laws and regulations
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a
whole The accompanying combining individual fund and account group statements and schedules as listed in the
table of contents are presented for purposes of additional analysis and are not a required part of the general
Ps" purpose financial statements Such information has been subjected to the auditing procedures applied m the audit
of the general purpose financial statements and in our opinion is fairly stated in all material respects in relation to
the general purpose financial statements taken as a whole
The information shown in the statistical section listed in the table of contents has not been subjected to the auditing
procedures applied in the audit of the general purpose financial statements and accordingly we express no
opinion thereon.
Miami Flonda
December 5 1996
ec e. 7044,
One Southeast Third Avenue Tenth Floor Miami Flonda 33131 Dade (305) 377 4228 Fax (305) 377 8331
700 Southe st Third Avenue Third Floor Ft Lauderdale Flonda 33316 Broward (954) 5251040 Fax (954) 525 2004
Mends ofS mind Internals lAssoctates 1 wdh Office mPrm p ICit Through tth World
Member fth Amer min tilt fCertified P bh Account tsD visa fo SEC Pr t Section and the Pr t CompamesPr t Sech
Member fth n daInsblut fCertified P bit Accountants
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GENERAL PURPOSE
FINANCIAL STATEMENTS
(Combined Statements - Overview)
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VILLAGE OF KEY BISCAYNE FLORIDA
COMBINED I3AI ANCE St IEL I
ALL I UND 1 YPLS AND ACCOUN I GROUPS
SLI I LMI3LR 30 1996
(WITH COMPARATIVE TOTAl S FOR SEPTEMBER 30 1995)
Government -it Proprietary 1 iduciary Account Tottis
Fund Types Fund Types Fund Types Groups (Memorandum Only)
I rust General General
Capital Internal end Fixed Long Term
ASSETS AND OTHER DLQI ES General Projects Enterprise Service AQcncv Assets Debt 1996 1995
Cash and cash equivalents $ 1728 672 $ 2 666 155 $ 1 227 094 $ $ $ $ $ J 621 921 $ 7 015 649
Investments 2 000 000 4 291 789 2 160 706 8 452 495 7 497 591
Participants loans receivable 229 533 229 33 60 279
Due from other governments III 250 89 677 200 927 82 657
Due from other funds 171 233
Accounts receivable 87 607 91 830 179 437 104 502
interest receivable 40 986 141 761 182 747 158 206
General fixed assets 3 784 160 17 100 597 22 884 757 14 159 706
Amount to be provided for retirement of general long term debt 8 163 152 8 163 152 8,774 169
Total assets and other debits $ 3,968 515 $ 2,666 155 $ 1 1 626 31 I $ $ 2 390 239 $ 17 100 597 $ 8 163 152 $ 45 914 969 $ 38 023 992
LIAI31LITILS, EQUH Y AND 0 FI1ER CREDITS
Liabilities
Accounts payable and accrued liabilities $ 327 921 $ 91 822 $ 484 462 $ $ $ $ $ 904 205 $ 1 010 600
Due to other funds 171 233
Deposits and performance bonds 25 600 25 600 25 330
Deferred revenue 106 309 106 309 106 309
Deferred rent 13 746
Deferred benefits payable 2 390 239 2 390 239 1 433 870
Bond anticipation notes 7 200 000 7 200 000 7 200 000
Compensated absences payable 503 152 503 152 329 169
Revenue bonds payable 7,660,000 7,660,000 8,445,000
Total liabilities 459 830 91 822 7 684 462 2 390 239 8 163 152 18 789 505 18 755,257
Equity and other credits
Investment in general fixed assets
Contributed capital
Retained earnings
Fund Hance
Reserved
Unreserved
Designated
Undesiguated
Total equity and other credits
Total liabilities equity and other credits
2 682 901
1 258 948
2 085 777 2 574 333
484 965
937 943
3 508 685 2 574 333 3 941 849
17 100 597
17 100 397
17 100 597 12 896 219
2 682 901
1258948 2 403 437
4 660 110 1 4111507
484 965 530 368
937 943 2 020 204
27 125 464 19 268 735
$ 3 968 515 $ 2 666 155 $ 11 626 311 $ $ 2 390 239 $ 17 100 597 $ 8 163 152 $ 45 914 969 $ 38 023 992
See notes to general purpose financial statements
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VILLAGE OF KEY BISCAYNE, FLORIDA
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FISCAL YEAR ENDED SEPTEMBER 30 1996
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1995)
Totals
(Memorandum Only)
Capital
General Project
Fund Fund 1996 1995
Revenues
Property taxes $ 6,486 0I9 S S 6 486 019 S 6 820 807
Utility taxes L294 486 1 294,486 1 257 179
Franchise fees 638 096 638,096 602 844
Intergovernmental 791 403 791403 788 062
Licenses and permits 430 208 430 208 301 152
Charges for services 167 800 167 800 73 268
Donations 277 856 277 806
Other 2 544 2 544 73 200
Interest 280 570 76 080 356 600 369 540
Impact fees 250 000
Grants 1 047 321 1 047 321 268 618
Total revenues 11 416 303 76,080 11 492 383 10 904 670
Expenditures
Current
General government 643 165 574 928 1 218 093 615 480
Public works 753 823 753 823 573 844
Building, zoning and planning 593 635 093 635 467 621
Parks and recreation 234 154 234 154 211 159
Public safety 4 634 385 4 634 385 4 294 606
Non -departmental 536,054 536 004 512 331
Capital outlay 215 441 215 441 1 752 174
Debt Service
Principal 785 000 780 000 1 755 000
Interest 351 089 351 089 483 101
Total expenditures 8 746 746 574 928 9 321 674 10 665 316
Excess (deficiency) of revenues over expenditures
Other financmg sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
2 669 557 (498 848) 2 170 709 239 354
1 806 850
1 806 850 1 327 733
(1,863 620) (1,863,620) (3,037,183)
(1 863 620)
1 806 850 (56 770) (1 709 450)
Excess (deficiency) of revenues and other financing
sources over expenditures and other financing uses 805 937 1 308 002 2 113 939 (1 470 096)
Fund balances, beginning
Fund balances ending
2 702 748 1 266 331 3 969 079 5 439 175
S 3 508 685 S 2 574 333 S 6 083 018 S 3 969 079
Se n tes to gene al purpose financial statements
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VILLAGE OF KEY BISCAYNE FLORIDA
STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND
FISCAL YEAR ENDED SEPTEMBER 30 1996
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Revenues
Property taxes
Utility taxes
Franchise fees
Intergovernmental
Licenses and permits
Charges for services
Other
Interest
Grants
Total revenues
Expenditures
Current
General government
Public works
Budding planning and zoning
Parks and recreation
Public safety
Non -departmental
Debt Service
Principal
Interest
Total expenditures
Excess of revenues over expenditures
Other financing uses
Transfers out
Total other financmg uses
Budgetary
Basis
Budget Actual
$ 6 380 )20 $ 6 486 019
1 295 800 1 294 486
678 500 638 096
728 300 791 403
405 000 430 208
54 500 167 800
280 400
150 000 280 )70
28 900 1 047 321
9 721 720 11 416 303
6M 620 60) 713
491 869 M4 965
532 494 593 635
239 821 237 775
4 916 023 4 821 253
711 968 425 256
78) 000 7b 000
351 089 3)1 089
Variance
Favorable
(Unfavorable)
$ 105 499
(1 314)
(40 404)
62 903
25 208
113 300
280 400
130 570
1 018 421
1 694 583
45 907
(53 096)
(61 141)
2 046
94 770
286 712
8 679 884 8 364 686 315 198
Excess of revenues over expenditures
and other financmg uses $
1 041 836 3 051 617 2 009 781
(1 041 836) (1 863 620) (821 784)
(I 041 836) (1 863 620) (821 784)
- $ 1 187 997 $ 1 187 997
See notes to general purpose financial statements
4
VILLAGE OF KEY BISCAYNE FLORIDA
COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30 1996
(WITH COMPARATIVE TOTALS FORFISCAL YEAR ENDED SEPTEMBER 30 1995
Operating revenue
Operating expenses
General and administrative costs
Operating income
1996 1995
$ 698 006 $ 617 999
244 981 165 463
453 025 452 536
Non operating revenue (expense)
Interest income 455 697 221 023
Interest expense (352 080) (163 326)
Intergovernmental 8 319
Total non -operating revenue (expense) 111 936 )7 697
Income before transfers
Transfers m
Net income
Retained earnings begmnmg
Reclassification of transfer
Retained earnings beginning, as restated
564 961 510 233
1 709 450
564 961 2,219,683
2 403 437 183 7Y4
(1 709 450)
693 987 183 754
Retained earnings ending $ 1 258 948 $ 2 403 437
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VILLAGE OF KEY BISCAYNE FLORIDA
COMBINED STATEMENT OF CASH FLOWS
ENTERPRISE FUNDS
FISCAL YEAR ENDED SEPTEMBER 30 1996
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1990
1996 1995
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Cash flows from operating activities
Operating income
Adjustments to reconcile operating income to net
cash provided by operating activities
(Increase) decrease in
Accounts receivable
Interest receivable
Due from other governments
Increase (decrease) in
Accounts pa}able
Due to other funds
Total adjustments
Net cashing provided by operating activities
Cash flows from non capital financing activities
Transfers in
Net cash provided by non capital financing activities
Cash flows from capital and related financial activities
Construction in progress
Proceeds from capital contributions
Proceeds from bond anticipation notes
Interest paid
Net cash provided (used) by capital and related
financing activities
Cash flows from investing activities
Maturities (purchase) of investments
Interest received
Net cash provided (used) by investing activities
Net mcrease (decrease) m cash
Cash, beginning
Cash ending
See notes to general purpose financial statements
6
$ 453 025 $ 452 536
(47 181)
16 445
(89 677)
(44 649)
(158 206)
(137 120) 621 382
(b7 204) 7 204
(414 737) 425 931
38 288 878 467
1 709 450
1 709 450
(4 520 673) (929 733)
981 770
7 200 000
(352 080) (163 326)
(3 890 983) 6 106 941
812 211 (5 104 000)
435 697 221 023
1 267 908 (4 882 977)
(2 584 787) 3 811 881
3 811 881
$ 1 227 094 $ 3 811 881
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NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
SEPTEMBER 30 1996
NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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This summary of the Village of Key Biscayne s significant accounting policies is presented to assist
the reader in interpreting the general purpose financial statements and other data in this report The
policies are considered essential and should be read in conjunction with die 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
I Reporting Entity
The Village of Key Biscayne (the Village) located in Dade County is a political subdivision of
the State of Florida
The Village which was incorporated in 1991 operates under a Council Manager form of
government In addition to the general government function the Village provides its residents
with public works public safety (police and fire) parks and recreation and building zoning and
planning functions The Village does not provide educational or hospital facilities Those
services are provided by the Dade County School Board and Metropolitan Dade County
respectively
The basic criteria for determining whether another organization should be included in the
Villages reporting entity for general purpose financial statements is financial accountability
Financial accountability includes (1) the appointment of a voting majority of the organizations
governing body (2) the ability of the Village to impose its will on the organization or (3) if
there is a financial benefit/burden relationship In addition an organization which is fiscally
dependent on the Village should be included in its reporting entity
The Village is not associated with any organizations meeting the above stated criteria
Therefore the general purpose financial statements include all the funds and accounts groups for
which the Village is financially accountable
2 Basis of Presentation
The Villages 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
7
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The funds and account groups are classified as follows
Governmental Fund Types
The general fund is the general operating fund of the Village It is used to account for all
financial resources except those that are required to be accounted for in specific finds
Resources are generated primarily from property taxes local utilities service taxes and
franchise fees Expenditures are incurred to provide public safety general government
recreation building zoning and planing and public works services
The capital projects fund accounts for the acquisition or construction of major capital
projects not being financed by proprietary funds The Village maintains one capital
projects fund the capital improvement fund
Proprietary Fund Type
The enterprise funds are used to account for operations that are financed and operated in
a manner similar to private business enterprises where the intent of the governing body is
that the costs including depreciation of providing goods or services to the general public
on a continuing basis be financed or recovered primarily through users charges The
Villages enterprise operations consist of a stormwater utility system and a solid waste
fund
Fiduciary Fund Type
The agency funds are used to account for assets that the Village maintains on behalf of
others as their agent and consists of a deferred compensation plan and a defined
contribution plan
Account Groups
Account groups are used to establish accounting control and accountability over the
Villages general fixed assets and general long term obligations Accordingly the Village
maintains a general fixed assets account group and a general long term debt account
group
3 Measurement Focus
Governmental Fund Types
Governmental funds use the flow of current financial resources measurement focus rather
than upon net income determination Only current assets and current liabilities are included
on its balance sheet with fund balance representing available spendable resources
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VILLAGE OF KEY BISCAYNE FLORIDA
ROI
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Proprietary Fund Type
Proprietary funds are accounted for on the flow of economic resources measurement focus
Accordingly all assets and liabilities are included on the balance sheet and tie
determination of net income is necessary for sound financial administration
Fiduciary Fund Type
The agency funds are custodial in nature (assets equal liabilities) and do not involve
measurement of results of operations
Account Groups
The general fixed assets account group and the general long term debt account group are
concerned only with the measurement of financial position
The general fixed assets account group is used to account for fixed assets not accounted for
in proprietary funds The general long term debt account group is used to account for
general long-term liabilities and certain other liabilities that are not specific liabilities of
proprietary funds
4 Basis of Accounting
The basis of accounting refers to the timing when revenues and expenditures or expenses are
recognized in the accounts and reported in the financial statements The basis of accounting
relates to the timing of measurement made regardless of the focus applied
Governmental and Agency Fund Types
These funds use the modified accrual basis of accounting Under the modified accrual basis
of accounting revenues are recorded w hen susceptible to accrual i e when both measurable
and available Measurable means the amount of the transaction can be determined
Available means collectible within the current period or soon enough thereafter to be used to
pay liabilities of the current period The Village considers all revenues available if they are
collected within 60 days after year end
Taxes intergovernmental revenues and interest are susceptible to accrual Sales taxes
collected and held by the State at fiscal year end on behalf of the Village are also recognized
as revenue Other receipts and fees become measurable and available when cash is received
by the Village and are recognized as revenue at that time Expenditure driven grants are
recognized as revenue when the qualifying expenditures have been incurred and all other
grant requirements have been met
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Expenditures are generally recognized when the related fund liability is incurred Exceptions
to this rule are I) long term portion of accumulated compensated absences is not recognized
in the general fund until the liability is expected to be liquidated from available spendable
resources and 2) unmatured interest on general long term debt which is recorded as an
expenditure on its due date
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Proprietary Fund Type
The enterprise funds are accounted for using the accrual basis of accounting Revenues are
recognized when earned and expenses are recognized when incurred The Village has
elected to follow all Financial Accounting Standards Board (FASB) Statements issued on or
before November 30 1989 except those that conflict with or are contradicted by a GASB
pronouncement
5 Budgets and Budgetary Accounting
An annual appropriated budget is prepared for the general fund
The Village follows these procedures in establishing the budgetary data reflected in the financial
statements
(a) The Village Manager submits to the Council a proposed operating budget for the ensuing
fiscal year The operating budget includes proposed revenues and expenditures with an
explanation regarding each expenditure that is not of a routine nature
(b) Public hearings are conducted to obtain taxpayer comments
(c) Prior to October 1 the budget is legally enacted through passage of an ordinance
(d) The Village Council by motion may make supplemental appropriations for the year up
to the amount of revenues in excess of those estimated However there were no
supplemental appropriations in this fiscal year
(e) Formal budgetary integration is employed as a management control device during the
year for the general fund
(f) The budget for the general fund is adopted on a basis consistent with generally accepted
accounting principles (GAAP) except for certain accruals
(g) The Village Manager is authorized to transfer part or all of an encumbered appropriation
balance within departments within a fund however any revisions that alter the total
appropriations of any department or fund must be approved by the Village Council The
classification detail at which expenditures may not legally exceed appropriations is at the
department level
(h) Unencumbered appropriations lapse at year end Encumbered amounts are not
reapproprtated in the following years budget
(i) Budgeted amounts are as originally adopted or as amended Individual type amendments
were not material in relation to the original appropriations
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VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Encumbrances
Encumbrances outstanding at year end represent the estimated amount of expenditures to result
if unperformed purchase orders and other commitments at year end are completed
Appropriations lapse at year end however the Village generally intends to honor purchase
order and other commitments in process As a result encumbrances outstanding at year end are
reported as reservations of fund balance since they do not constitute expenditures or liabilities
7 Deposits and Investments
The Village s cash and cash equivalents are considered to be cash on hand and short term
investments with original maturities of three months or less from the date of acquisition
Village administration is authorized to invest in those instruments authorized by the Florida
Statutes Investments are stated at cost except those of the deferred compensation plan and
defined contribution plan which are stated at market
8 Fixed Assets
Fixed assets used in governmental fund type operations are accounted for in the general fixed
assets account group rather than in the governmental funds General fixed assets purchased are
initially reported as expenditures in the general and capital projects fund and are capitalized at
historical cost or estimated cost if actual historical cost is not available in the general fixed
assets account group except for certain infrastructure assets which include streets alleys
sidewalks drainage and lighting systems which are immovable and of value only to the Village
Depreciation is not required and has not been provided on general fixed assets
E
Proprietary fund fixed assets currently consist of assets capitalized and classified as construction
m progress for the stormwater utility system project
9 Compensated Absences
It is the Village s policy to permit employees to accumulate earned but unused vacation and sick
pay benefits within specified limits The accumulated unpaid vacation and sick leave is reported
in the general long term debt account group
10 Long -Term Obhgations
The Village reports long term debt of governmental funds m 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
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
11 Reserves and Designations
Fund balances are reserved to indicate that a portion of fund equity is not available for
appropriation or is legally segregated for a specific future use The description of each reserve
indicates the purpose for which each was intended
Designated fiord balances indicate that a portion of fund equity has been segregated based on
tentative plans of the Village Such plans or intent are subject to change
Unreserved undesignated fund balance is the portion of fund equity available for any lawful
use
12 Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes Although these estimates are
based on management s knowledge of current events and actions it may undertake in the future
they may ultimately differ from actual results
13 Comparative Data/Reclassification
Certain amounts in the September 30 1995 columns have been reclassified to conform to
September 30 1996 presentation
Comparative total data for the prior year has been presented in selected sections of the financial
statements to provide an understanding of changes in Villages financial position and operations
14 Memorandum Only - Total Columns
Total columns on the combined statements which are captioned memorandum only' aggregate
the columnar amounts presented by fund type and account group and are presented only to
facilitate financial analysis Data in these columns do not present financial position or results of
operations in conformity with generally accepted accounting principles neither is such data
comparable to a consolidation Interfund eliminations have not been made in the aggregation of
this data
15 Budget/GAAP Reconciliation
As of September 30 1996 the following reconciles expenditures reported on a GAAP basis to
the budgetary basis
Excess of revenues over expenditures and other financing uses
(budgetary basis) $1 187 997
Unbudgeted expenditures of reserves (378 455)
Prior year encumbrances (9 482)
Current year encumbrances 5.877
Excess of revenues and other financing sources over expenditures
and other financing uses (GAAP) $ 805.937
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
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NOTE 2 DEPOSITS AND INVESTMENTS
At September 30 1996 the Village maintained deposits (cash on hand) with book balances of
$5 499,227
In addition to insurance provided by the Federal Depository Insurance Corporation (FDIC) all
deposits are held in banking institutions approved by the State Treasurer of the State of Flonda to
hold public funds Under Florida Statutes Chapter 280 Flonda Security for Public Deposits Act
the State Treasurer requires all Flonda qualified public depositories to deposit with the Treasurer or
another banking institution eligible collateral equal to 50% to 125% of the average daily balance for
each month of all public deposits in excess of any applicable deposit insurance held The
percentage of eligible collateral (generally in the form of U S Government and agency securities
state or local government debt or corporate bonds) to public deposits is dependent upon the
depositorys financial history and its compliance vtirth 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 US Treasury its agencies
instrumentalities and the State Board of Administration un estment pool
The Villages investments are categorized in the following table to give an indication of the level of
risk assumed by the Village at year end Category 1 includes insured or registered or securities
held by the Village or its agent in the Village s name Category 2 includes uninsured and
unregistered with securities held by the counterparty s trust department or agent in the Village s
name Category 3 includes uninsured and unregistered with securities held by the counterparty or
by its trust department or agent but not in the Village s name
At September 30 1996 the Village s investments balances were as follows
Carrying Market
Category I Amount Value
Certificates of Deposit $6 291 789 $6 291 789 $6 291 789
Investments not subject to categorization
Defined contribution plan
Deferred compensation plan
State Board of Administration investment pool
1 831 250
558 989
122,694
$8 804 722
1 831,250
558 989
122,694
$8 804,722
A reconciliation of cash and investments as shown on the combined balance sheet is a follows
Cash on hand
Carrying amount of investments
Cash and cash equivalents
Investments (includes participants loans receivable)
$ 5 499 227
8,804,722
$14,303,949
$ 5 621 921
8,682,028
$14,303,949
13
VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 3 PROPERTY TAXES
Property values are assessed on a county wide basis by the Metropolitan Dade County Property
Appraiser as of January 1 the lien date of each year and are due the following November 1
Taxable value of property within the Village is certified by the Property Appraiser and the Village
levies a tax millage rate upon the taxable value which will provide revenue required for the fiscal
year beginning October 1
Property taxes levied each October 1 by the Village and all other taxing authorities within the
County are centrally billed and collected by Dade County with remittances to the Village of their
proportionate share of collected taxes Taxes for the fiscal year beginning October 1 are billed in
the month of November subject to a 1% per month discount for the period November through
February and are due no later than March 31 On April 1 unpaid amounts become delinquent with
interest and penalties added thereafter Beginning June 1 In certificates representing delinquent
taxes with interest and penalties are sold by Dade County with remittance to the Village for its
share of those receipts At September 30 1996 there were no significant delinquent taxes
NOTE 4 FIXED ASSETS
The following is a summary of changes in general fixed assets during the year
Balance Balance
September 30 September 30
1995 Additions Deletions 1996
Land $ 9 240 657 $4 000 000 m $ $13 240 657
Buildings 587 076 587 076
Improvements other than buildings 921 722 42 671 964 393
Equipment 2 061 892 162 328 6 706 2 217 514
Furniture and fixtures 84 872 6,085 90 957
Total $12 896 219 $4 211 084 $6 706 $17 100 597
(I) Donated property
Depreciation is not required and has not been provided on general fixed assets
The following is a summary of proprietary fund type fixed assets at September 30 1996
Construction in progress
Balance Balance
September 30 September 30
1995 Additions Deletions 1996
$1 263 487 $4 520,673 $ $5 784,160
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 5 LONG TERM DEBT
Changes in general long term debt during the year are summarized as follows
Balance Balance
September 30 September 30
1995 Additions Payments 1996
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Revenue bonds payable
Compensated absences payable
Revenue Bonds
$8 445 000 $ $785 000 $7 660 000
329.169 173.983 503.152
$8,774,169 $173 983 $785 000 $8,163,152
During the fiscal year ended September 30 1994 the Village issued land acquisition revenue
bonds of $9 200 000 the proceeds of which were used for the acquisition of the Village Green
property The Village has pledged public service tax revenues to secure payment of the
principal and interest on the bonds The bonds are due in annual principal installrnents ranging
from $820 000 in fiscal 1997 to $1 105 000 in fiscal 2004 Interest accrues at 4 36% per annum
Debt service requirements to amortize the revenue bonds as of September 30 1996 are as
follows
Fiscal Year Principal Interest Total
1997 $ 820000 $ 316 100 $1 136 100
1998 855 000 279 585 1 134 585
1999 895 000 241 435 1136 435
2000 935 000 201 541 1 136 541
2001 975 000 159 903 1 134 903
20022004 3,180000 211,896 3,391,896
$7,660 000 $1,410,460 $9 070,460
Bond Anticipation Notes
Changes in proprietary fund debt during the year are summarized as follows
Bond anticipation notes
Balance Balance
September 30 September 30
1995 Payments 1996
$7 200 000 $ $7 200 000
15
VILLAGE OF KEY BISCAYNE, FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 5 LONG-TERM DEBT
Propnetary Fund Debt
During the fiscal year ended September 30 1995 the Village obtained financing for the west
side stormwater construction project in the form of $7 200 000 Bond Anticipation Notes Series
1995 Interest accrues at 4 89% per annum with a balloon principal payment due on April 1
1997 including interest of $176 040
NOTE 6 COMMITMENTS AND CONTINGENCIES
Litigation
The Village is involved in several lawsuits incidental to its operations the outcome of which in
the opinion of management and legal counsel should not have a material effect on the financial
condition of the Village
Commitments
The Village is obligated under a non cancelable operating lease for office space for a period of
two years commencing July 1 1995 Rent expense was $63 000 for fiscal year 1996
The following is the commitment under the lease
Fiscal Year
1997
$54 000
The Village as of September 30 1996 has outstanding construction commitments of
approximately $2 5 million for their stormwater utility projects
Contingent Liability
Federal and State programs in which the Village participates were audited in accordance with
the provisions of U S Office of Management and Budget Circular A 128 Rules of the Auditor
General of the State of Florida and grantor agencies Pursuant to those provisions certain
programs were tested for compliance with applicable grant requirements While no matters of
noncompliance were disclosed by the audit government agencies may subject grant programs to
additional compliance tests which may result in disallowed costs In the opinion of
management future disallowances of current grant expenditures if any would not have a
material effect on the Villages financial condition
Risk Management
The Village is exposed to various risks of loss related to torts theft of damage to and
destruction of assets errors and omissions and natural disasters for winch the Village carries
commercial insurance
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 7 RESERVED/DESIGNATED FUND BALANCE
As of September 30 1996 fund balances in the general fund have been reserved or designated for
the following purposes
Reserved Fund Balance
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General fund
Supplemental fire aid $ 112 095
Encumbrances 5 877
Beach improvements 24 355
Beautification of Crandon Boulevard 189 048
Recreation facilities 408 448
Grant audits 541 024
Community center 28 453
Beach park and walk 250 000
Compensated absences 146,227
Dade heritage trust 4 500
Subsequent year s budget 375,750
$2 085 777
Designated Fund Balance
General fund
Police/fire equipment and building
Community grants maintenance and improvements
Future personnel expense
Professional fees
NOTE 8 CONTRIBUTED CAPITAL
$ 73 298
60 154
264 375
87,138
$484 965
A summary of changes in the enterprise fund s contributed capital for the fiscal year ended
September 30 1996 follows
Stonnwater
Utility
System
Balance September 30 1995 $
Balance September 30 1995 as restated (see Note 11) 1 709 450
Grant contributions 916 681
Current general fund contributions 56,770
Balance September 30 1996 $2,682 901
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 9 DEFERRED COMPENSATION PLAN
The Village of Key Biscayne maintains a deferred compensation plan for its employees in
accordance with Internal Revenue Code Section 457 The plan is voluntary and the Village does not
contribute Employees may elect to defer a portion of their salary until future years Deferred
compensation deposits are made into the employees accounts through payroll deductions before
income taxes are withheld The deferred compensation is not available to employees until
termination, retirement death or unforeseeable emergency Contributions by the employees for the
fiscal year ended September 30 1996 were $191 027
All amounts of compensation deferred under the plan, all property and rights purchased with those
amounts and all income attributable to those amounts property or rights (until paid or made
available to the employee or beneficiary) are solely the property and rights of the Village subject
only to the claims of the Villages general creditors Participants rights under the plan are equal to
those of general creditors of the Village in an amount equal to the fair market value of the deferred
account of each participant
It is the opinion of the Village that the Village has no liability for losses under the plan but does
have the duty of due tale that would be required of an ordinary prudent investor The Village
believes that it is unlikely that it will use plan assets to satisfy claims of general creditors in the
future
NOTE 10 DEFINED CONTRIBUTION PLAN
The Village of Key Biscayne is a single employer that contributes to the Village of Key Biscayne
Money Purchase Plans which are defined contribution pension plans created in accordance with
Internal Revenue Code Section 401(a) The plan currently covers all full time employees of the
Village Under these plans the Village contributes I I% and the employee contributes 6% or 14%
Employer contributions for fiscal year ended September 30 1996 were $335 676 while the
employee contributions were $175 984
A defined contribution pension plan provides pension benefits in return for services rendered
provides an individual account for each participant and specifies how contributions to the
individual s account are to be determined instead of specifying the amount of benefits the
individual is to receive
Under a defined contribution pension plan the benefits a participant will receive depends solely on
the amount contributed to the participants account the returns earned on investments on those
contributions and forfeitures of other participants benefits that may be allocated to such
participants account
The Villages total payroll and covered payroll for fiscal year 1996 was $3 639 310
The Money Purchase Plans held no secunties of the Village or related parties during the year or as
of September 30 1996
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VILLAGE OF KEY BISCAYNE FLORIDA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
(Continued)
NOTE 11 RECLASSIFICATION OF TRANSFER
In fiscal year 1995 the Village transferred $1 709 450 from the general fund to the stormwater
utility fund (an enterprise fund) This was reported as an operating transfer but would be more
properly classified as an equity transfer to contributed capital Therefore the following adjustment
was necessary to reclassify the transfer from retained earnings to contributed capital of the
stormwater utility fund
Retained earnings September 30 1995 $2 403 437
Reclassification of transfer 1,709,450
Retained earnings September 30 1995 as restated $ 693 987
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COMBINING, INDIVIDUAL FUND
AND ACCOUNT GROUP
STATEMENTS AND SCHEDULES
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GENERAL FUND
The general fund is the principal operating fund of the Village and is used to account for resources
traditionally associated with governments which are not required to be accounted for in another fund
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VILLAGE OF KEY BISCAYNE FLORIDA
( GENERAL FUND
t— COMPARATIVE BALANCE SHEETS
SEPTEMBER )0 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER )0 1995)
1996 1995
ASSETS
Cash and cash equivalents $ 1 728 672 $ 1 876 035
Investments 2 000 000 1 000 000
Due from other governments 111 250 82 657
Due from other funds 171 233
Accounts receivable 87 607 59 853
Interest receivable 40 986
Total assets $ 3 968 515 $ 3 189 778
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LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable and accrued liabilities
Deposits and performance bonds
Deferred revenue
Deferred rent
Total liabilities
Fund balance
Reserved far
Supplemental fire aid
Encumbrances
Beach improvements
Beautification of Crandon Boulevard
Recreation facilities
Grant audits
Community center
Beach park and walk
Compensated absences
Dade heritage trust
Subsequent year's budget
Unreserved
Designated for
Police/fire equipment and building
Community grants maintenance and improvements
Future personnel expense
Professional fees
Unreserved widesignated
Total fund balance
Total liabilities and fund balance
$ 327 921 $ 341 645
25 600 25 330
106 i09 106 309
b 746
459 830 487 030
112 095
5 877
24 355
189 048
408 448
541 024
28 453
250 000
146 227
4 500
375 750
106 000
9 482
23 027
179 412
559 562
541 024
2 085 777 1 418 507
73 298 89 101
60 154 125 029
264 375 250 000
87 138 66 238
484 965 530 368
937 943 753 873
3 508 685 2 702 748
$ 3 968 515 $ 3 189 778
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VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL FUND O
SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
FISCAL YEAR ENDED SEPTEMBER 30 1996
Budgetary Variance
Basis Favorable -t
Budget Actual (Unfavorable)
Revenues
Property taxes $ 6 380,520 $ 6 486 0I9 $ 105 499
Utility taxes 1290 800 1.294 486 (1 314)
d
Franchise fees 678 500 638 096 (40 404)
Intergovernmental
State shared revenue 728 500 790 403 61 903
Licenses and permits
n
Occupational licenses 30 000 36 810 6 810
Building permits 370 000 393 398 18 398
405 000 430 208 25 208
Charges for services
54 500 168 800 114 300
Other
Donations 277 856 277 856
Miscellaneous 2 544 2 544
Interest
280 400 280 400
100 000 280 570 130 570
Grants
Hurricane loss grant revenue 267 682 267 682
Other grants 28 900 779 639 700 739
28 900 1 047 321 1 018 421
Total revenue
$ 9 721 720 $ 11 416 303 $ 1 694 583
(Continued)
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VILLAGE OF KEY BISCAYNE FLORIDA
GENERAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30 1996
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Expenditures
General government,
Elected officials
Administration
Village clerk
Village attorney
Budgetary Variance
Basis Favorable
Budget Actual (Unfavorable)
$ 10 000 $ 12 022 $ (2 022)
347 334 325 076 22 478
116 066 116 781 (715)
178 000 151,834 26 166
Total general government 651 620 605 713 43 907
Pubhc works 491,869 344 965 (33 096)
Building zoning and planning 532 494 593,635 (61 141)
Parks and recreation 239 821 237 773 2 046
Public safety 4 916,023 4 821 253 94 770
Non -departmental 711 968 425 256 286 712
Debt service
Principal 785 000 785 000
Interest 351,089 351 089
1,136,089 1 136,089
Total expenditures 8 679,884 8 364 686 315 198
Transfers out 1,041 836 1 863 620 (821,784)
Total expenditures and transfers $ 9 721 720 $ 10 228 306 $ (506 586)
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ENTERPRISE FUNDS
Enterpnse funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises where the intent is that the costs of providing goods or services be financed or
recovered pnmanly through user charges
Stormwater Utility System
The stormwater utility system accounts for the construction and maintenance of the stormwater
system
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Solid Waste Fund
The solid waste fund provides collection service for trash removal Solid waste expenditures are
primarily for curbside collections
VILLAGE OF KEY BISCAYNE, FLORIDA
ENTERPRISE FUNDS
COMBINING BALANCE SHEETS
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SEPTEMBER 30 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1995)
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rote
Stormwater
Utility
System
ASSETS
Solid
Waste
Fund
Totals
1996 1995
Current assets
Cash and cash equivalents $ 1 179 474 $ 47 620 $ 1 227 094 $ 3 811 881
Investments 4 291 789 4 291 789 5 104 000
Due from other governments 89 677 89 677
Accounts receivable 91 830 91 830 44 649
Interest receivable 141 761 141 761 1)8 206
Total current assets 5 794 )31 47 620 5 842 151 9 118 736
Fixed assets 5 784 160 5 784 160 1 263 487
Total assets
LIABILITIES AND FUND EQUITY
Current liabilities
Accounts payable and accrued habilities
Due to other funds
Bond anticipation notes
Total current liabilities
Long term debt
Bond anticipation notes
Total liabilities
Fund equity
Contributed capital
Retained earnings
Total fund equity
$ 11 578 691 $ 47 620 $ 11 626 311 $ 10 382 223
$ 484 462 $
7 200 000
$ 484462 $ 621382
157 204
7 200 000
7 684 462 7 684 462
7 684 462 7 684 462
2 682 901 2 682 901
1 211 328 47 620 1 258 948
778 786
7 200 000
7 978 786
1 709 450
693 987
3 894 229 47 620 3 941 849 2 403 437
Total habilrhes and find equity $ 11 578 691 $ 47 620 $ 11 626 311 $ 10 382 223
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VILLAGE OF' KEY BISCAYNE FLORIDA
ENTERPRISE FUNDS t
COMBINING STATEMENTS OF REVENUES EXPENSES AND CHANGES IN ttr
RETAINED EARNINGS
FISCAL YEAR ENDED SEPTEMBER 30 19%
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1995)
Operating revenue
Operating expenses
General and administrative costs
Operating income
Stormwater Solid
Utility Waste Totals
System Fund 1996 1995
$ 456 515 $ 241 491 $ 698 006 $ 617 999
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32 371 212 610 244 981 165 463
424 144 28 881 453 020 452 536 0
Non -operating revenue (expense)
Interest income 442 006 13 691 455 697 221 023
Interest expense (352 080) (352 080) (163 326)
Intergovernmental 8 319 8 319
Total non operatmg revenues 89 926 22 010 111 936 57 697
Income before transfers 514 070 50 891 564 961 510 233
Transfers in 1 709 4)0
Net income 514 070 50.891 564 961 2 219 683
Retained earnings (deficit) beginning
Reclassification of transfer
Retained earnings (deficit) beginning, as restated
2 406 708 (3 271) 2 403 437 183 754
(1 709 450) (1 709 450)
697,258 (3 271) 693 987 183 704
Retained earnings ending $ 1 211 328 $ 47 620 $ 1 258 948 $ 2 403 437
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VILLAGE OF KEY BISCAYNE FLORIDA
ENTERPRISE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FISCAL YEAR ENDED SEPTEMBER 30 1996
(WITH COMPARATIVE TOTALS FOR FISCAL YEAR ENDED SEPTEMBER 30 1993)
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Stormwater Solid
Utility Waste Totals
System Fund 1996 1993
Cash flows from operating actn sties
Operating income $ 424 144 $ 28 881 $ 453 025 $ 452 336
Adjustments to reconcile operating income to
net cash provided (used) by operating activities
(Increase) decrease in
Accounts receivable
Interest receivable
Due from other goy ernments
Increase (decrease) in
Accounts payable
Due to other funds
Total adjustments
Net cash pro ided (used) by operating activities
Cash flows from non capital financing activities
Transfers in
Net cash provided by non capital
financing activities
(91 830) 44 649 (47 181) (44 649)
16 445 16 443 (158 206)
(89 677) (89 677)
(137 120)
(137 120) 621 582
(157 204) (157 204) 7 204
(302 182) (112 555) (414 737) 423 931
121 962 (83 674) 38 288 878 467
1 709 430
1 709 450
Cash flows from capital and relating financing activities
Construction in progress (4 520 673) (4 320 673) (929 734)
Proceeds from capital contributions 973 451 8 319 981 770
Proceeds from bond anticipation notes 7 200 000
Interest paid (332 080) (32,080) (163 326)
Net cash provided (used) by capital and
related financing activities (3 899 302) 8 319 (3,890 983) 6 106 941
Cash flows from investing activities
Maturities (purchase) of investments
Interest received
Net cash provided (used) by investing activities
Net increase (decrease) in cash
Cash beginning
Cash, ending
812 211 812 211 (J 104 000)
442 006 13 691 455,697 221 023
1 254 217 13 691 1,267,908 (4 882 977)
(2 523 123) (61664) (2 584 787) 3 811 881
3 702 597 109 284 3811,881
$ 1 179 474 $ 47 620 $1 227 094 $ 3 811 881
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AGENCY FUNDS
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These funds are used to account for assets held for employees in accordance with the provisions of Internal
Revenue Code Sections 401 and 457
VILLAGE OF KEY BISCAYNE FLORIDA
AGENCY FUNDS
COMBINING BALANCE SHEETS
SEPTEMBER 30 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1995)
Deferred Defined
Compensation Contnbution Totals
Plan Plan 1996 1995
ASSETS
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Investments
Participants loans receivable
LIABILITIES
$ »8 989 $ 1 601 717 $ 2 160 706 $ 1 393 391
229.533 229,533 60 279
$ 558 989 $ 1 831 250 $ 2 390 239 $ 1 433 870
Deferred benefits payable $ 338 989 $ 1 831 230 $ 2 390 239 $ 1 433 870
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ASSETS
Investments
LIABILITIES
VILLAGE OF KEY BISCAYNE FLORIDA
AGENCY FUNDS
DEFERRED COMPENSATION PLAN
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED SEPTEMBER 30 1996
Balance Balance
September 30 September 30
1995 Additions Deletions 1996
312 371 ', 258.585 $ 11.967 I. 538 989
Deferred benefits payable $ 312 371 l 258 5k $ 11.967 538 989
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VILLAGE OF KEY BISCAYNE FLORIDA
AGENCY FUNDS
DEFINED CONTRIBUTION PLAN
STATEMENT OF CHANGES IN ASSETS AND LIABILII IES
FISCAL YEAR ENDED SEPTEMBER 30 19%
Balance Balance
September 30 September 30
199) Additions Deletions 1996
ASSETS
Investments
Participants loans receivable
LIABILITIES
$ 1 081 220 $ 640 323 $ 119 826 $ 1 601 717
60 279 228 455 59 201 229 533
$ 1 141499 $ 868 778 $ 179 027 $ 1 831 2)0
Deferred benefits payable $ 1 141 499 $ 868 778 $ 179 027 $ 1 831 250
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GENERAL FIXED ASSETS ACCOUNT GROUP
To account for fixed assets not accounted for in proprietary fund operations
VILLAGE OF KEY BISCAYNE FLORIDA
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SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE
SEPTEMBER 30 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 199)
1996 1995
General fixed assets
Land $ 13 240 657 $ 9 240 67
Buildings 587 076 587 076
ib Improvements other than buildings 964 393 921 722
Furmture and fixtures 90 957 84 872
Equipment 2 217 ) 14 2 061 892
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Total general fixed assets $ 17 100 597 $ 12 896 219
Investment in general fixed assets by source
General fund $ 13 100 597 $ 12 896 219
Donations 4 000 000
Total investment m general fixed assets $ 17 100 597 $ 12 896 219
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VILLAGE OF KEY BISCAYNE FLORIDA
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30 1996
Improvements Furniture
Other Than and
Land Building Buildings Fixtures Equipment Total
General government $ 4 000 000 $ $ 11 299 $ 49 705 $ 200 818 $ 4 261 822
Parks and recreation 9 240 657 942,522 124 330 10 307 509
Public safety 387 076 10 572 41,252 1,892 366 2 531 266
$ 13 240 657 $ 587 076 $ 964 393 $ 90 957 $ 2 217 514 $ 17 100 597
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VILLAGE OF KEY BISCAYNE FLORIDA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
FISCAL YEAR ENDED SEPTEMBER 30 1996
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General government
Parks and recreation
Public safety
Istitta
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MON
Balance
September 30
1995 Additions
Balance
September 30
Deletions 1996
$ 214 538 $ 4 047 284 $
10 269 173 38 336
2 412 508 125 464 6 706
$ 4 261 822
10 307 509
2 )31 266
$ 12 896 219 $ 4 211 084 $ 6 706 $ 17 100 597
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GENERAL LONG-TERM DEBT ACCOUNT GROUP
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To account for the Village s unmatured principal and long term portion of compensated absences
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VILLAGE OF KEY BISCAYNE FLORIDA
STATEMENT OF GENERAL LONG TERM DEBT
SEPTEMBER 30 1996
(WITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1995)
1996 1995
Amount to be provided for retirement of general long term debt $ 8 163.152 $ 8 774 169
General long term debt payable
Revenue bonds payable
Compensated absences payable
$ 7 660 000 $ 8 445 000
503 152 329 169
Total general long term debt payable $ 8 163, a.774.169
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STATISTICAL SECTION
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VILLAGE OF KEY BISCAYNE FLORIDA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
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Fiscal General Public Parks and
Year Government Safety Recreation
1992 $ 1 468 000 (I) $ 13 511 $ 11 779
1993 2 848 857 (2) 2 790 379 240 794
1994 4 126 094 (3) 4 4)3 539 9 601 922 (4)
1995 5 524 305 (3) 4 294 606 211 159
1996 4 988 004 (3)
4 634 38) 234 154
Public
Works
$ 86 580
185 b7
782 001
573 844
753 823
Total
$ 1 579 870
6 065 287
18 963 )56
10 603 914
10 610 366
(1) Includes $783 280 hurricane related expenditures
(2) Includes $1 2M 264 hurricane related expenditures
(3) General government mcludes economic development building planning and zonmg debt service
capital outlay and non departmental expenditures
(4) Includes acquisition of land for $9 238 317 for the Village Green
Note The Villages first year of operation was fiscal year 1992
Includes general fund only
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VILLAGE OF KEY BISCAYNE, FLORIDA
GENERAL GOVERNMENTAL REVENUES BY SOURCE
Licenses
Fiscal Property and Inter Utility Franchise
Year Taxes Permits governmental Taxes Fees Other Interest Total
1992 $ $ 15 766 $ 934 018 $ 979 236 $151392 $ 23 276 $ 4 480 $ 2 108 168
1993 3 536 480 1 458 733 2 485 979 1 212 084 625 815 169 429 121676 9 610 196
1994 6 640 045 629 246 997 501 1 268 428 668 020 115 664 288 978 10 607 882
199, 6 820 807 351 152 788 062 1 2,7 179 652 844 665 086 369 540 10 904 670
1996 6 486 019 430 208 791403 1 294 486 638 096 1 49, 521 280 570 11 416 303
Note The Villages first year of operation was fiscal year 1992
Includes general fund only
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VILLAGE OF KEY BISCAYNE FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
Tax Fiscal Assessed Tax Total Percent
Year' Year Value Levy Collected Collected
1992 1993 $ 1 617 141 088 $ 3 687 082 $ 3 536 480 93 9%
1993 1994 1 560 057 130 6 923 094 6 640 045 95 9
1994 1995 1 741 921 584 7 143 620 6 820 807 93 5
1995 1996 1 767 437 003 6 716 337 6 418 864 93 6
(1) Assessments as of January 1 of the year fisted bills mailed in October of that year taxes become
delinquent at the end of April of the subsequent 3 ear Initial property tax levy by the Village
October 1992
4.144
(2) Collections reflect timely payment discounts of up to 4% and other adlusliments
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VILLAGE OF KEY BISCAYNE FLORIDA
ASSESSED ACTUAL VALUE OF TAXABLE PROPERTY
Net Assessed
Real Personal Property
Year Property Property Value
1992 $ 1 601 826 518 $ 15 314 570 $ 1 617 141 088
1993 1 X43 711 468 16 345 662 1 560 057 130
1994 1 715 626 471 26 29 113 1 741 921 584
1995 1 744 363 535 23 093 470 1 767 457 005
1996 1 837 939 078 23 304 054 1 861 243 132
Source Dade County Property Appraisers Office
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VILLAGE OF KEY BISCAYNE FLORIDA
PROPERTY VALUE CONSTRUCTION AND BANK DEPOSITS
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Fiscal
Year
1992
1993
1994
199)
1996
Total
Permits
Issued
35
1 737
2 20)
2 857
3 171
Residential
# of
Units Valuation
25 $ 638 483
1 633 26 822 424
2 081 25 410 312
2 368 33 820 503
3 060 63 318 653
Commercial
# of
Units Valuation
10
104
124
289
111
$ 401 058
4 383 673
4> 367 390
2 099 661
1 231 097
Total
of
Construction
$ 1 039 541
31 206 097
70 977 702
3) 920 164
66 549 732
(000s)
Omitted
Bank
Deposits (1)
$ 20 282 998
18 146 647
17 524 140
17 938 762
14 561 654
(1) Federal Reserve Bank Atlanta, GA Information is for Metropolitan Dade County which the Village
of Key Biscayne is a part of Information is not available for the Village of Key Biscayne alone
Note Village began issuing permits on September 1 1992
37
VILLAGE OF KEY BISCAYNE FLORIDA
UTILITY TAX REVENUE BY SOURCE
Fiscal Telecouuuu Fuel
Year Electncitv mcations Gas Oil Water Total
1992 $ 676 919 $ 157 887 $ 35 532 $ 3 348 $ 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 4 331 143 719 1 268 429
1995 875 704 186 780 38 130 3 920 152 643 1 257 179
1996 888 651 199 746 37 034 3 885 165 169 1 294 485
FRANCHISE FEE REVENUE BY SOURCE
Fiscal Cable
Year Electncitv Television Telephone Total
1992 $ 112 658 $ 38 734 $ $ 131 392
1993 570 605 39 821 15 389 625 815
1994 603 638 43 877 20 503 668 020
1993 589 031 43 899 19 914 632 844
1996 571 093 46 824 20 179 638 096
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VILL AGE OF KEY BISCAYNE FLORIDA
PROPERTY TA X R ATES
DIRECT A ND OVERLAPPING GOVERNMENTS
Village of
Key $hscavne Dade County State Scho ol District
Debt Total Tot al Debt Total
Fiscal Village Operating Service County SFWMD FIND State Operating Service School
Year Millage Mdlage Millage Millage Mill age Millage Millage Millage Millage Millage Other Total
1992 2 280 7 305 1 139 8 444 0 547 0 052 0 599 9 023 0 505 9 528 3 445 24 296
1993 4 439 7 305 0 830 8 135 0 597 0 052 0 649 9 283 0 640 9 923 1 101(1) 24 247
1994 4 101 7 253 0 817 8 070 0 497 0 049 0 546 9 503 0 842 10 345 0 443 23 505
1995 3 800 6 828 0 789 7 617 0 547 0 040 0 587 9 373 1 016 10 389 0 429 22 822
1996 3 606 6 469 0 774 7 243 0 572 0 038 0 610 9 356 1 010 10 366 0 439 22 264
(1) Village established its own fire district effective October 1 1993
Source Dads. Coun ty Property A ppraisers Office
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VILLAGE OF KEY BISCAYNE FLORIDA
RATIO OF NET BONDED DEBT
TO ASSESSED VALUE AND PER CAPITA
Net Ratio of Net Net Bonded
Fiscal Assessed Bonded Bonded Debt to Debt
Year Population Value (1) Debt (2) Assessed Value Per Capita
1994 8 887 $ 1 )60 0)7 130 $ 9 200 000 0 59% $ 1035
199) 8 894 1 741 921 584 8 445 000 048% 949
1996 8 886 1 767 457 005 7 660 000 0 43% 862
(1) Net bonded assessed actual value of taxable property
(2) Net bonded debt represents revenue bonds
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VILLAGE OF KEY BISCAYNE FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR NET
BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES
Ratio of Debt
Service to
Total Total General General
Fiscal Debt Governmental Governmental
Year Pnncipal Interest (1) Service (2) Expenditures Expenditures
1994 $ $ 194 989 $ 194 989 $ 19 053 562 1 0%
1995 Th5 000 384 661 1 139 661 10 603 914 10 7
1996 7b 000 3M 089 1 136 089 10 610 366 10 7
if pn,
(1) Excludes bond issuance and other costs
(2) Debt service on revenue bonds
Includes general fund onl}
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VILLAGE OF KEY BISCAYNE FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30 1996
Taxpayer
Ocean Club Key Biscayne
Grand Bay Hotel Residence
Sonesta Beach Hotel
Fimvest Investment Et Al (Key Colony)
Key Biscayne Shopping Center
Coldwell Banker
Florida Power & Light
Red Dragon Sands Ltd
Gallena Mall
Pic Pan, Inc
Source Dade County Appraisers Office
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% of
Total
Taxable Assessed
Valuation Valuation
$ 61 042 161 3 28%
X23609 7 281
29 564 921 1 59
9 079 424 49 r
8 026 68) 43
7 511 420 40
5 946 376 32
5 535 159 30
436 860 29
5 003 719 27
$ 189 )07 712 10 18%
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VILLAGE OF KEY BISCAYNE FLORIDA
DEMOGRAPHICS STATISTICS
POPULATION
Estimates of
Population
by Age
Under 18 Years 18 to 64 Years 65 Years or Older
Year Number Percent Number Percent Number Percent Total
1990 1 646 19 5 684 64 1 524 14 8 854
Estimates of
Population
by Race
Anglo Black Hispanic Total
1990 5 028 .i6 ..) 790 8 854
INCOME*
Per Capita Income
Average
Per
Analo Black Hispanic Capita
1990 $4461 $24P77 $28.41 $ i7629
UNEMPLOYMENT
RATES**
(Percent)
Dade County
Village of
Key Biscayne
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
58 53 63 70 88 100 77 79 68 78
* Source Bureau of Census Income Division
** Source State Department of Labor
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VILLAGE OF KEY BISCAYNE FLORIDA
MISCELLANEOUS STATISTICAL DATA
She 1 LMBER 30 1996
Date of Incorporation
Form of Government
Area
Miles of Street
Fire Protection
Number of Stations
Pohce Protection
Number of Stations
Education
1991
Council Manager
12 Square Miles
20 2 Linear Miles
1
1
Elementary
Attendance Centers 1
Number of Students 505
Number of Teachers 33
Dade County Water & Sewer Authonty
Number of Customers 1740
Average Daily Consumption 2 X00 000 gallons
Sewers
Number of Customers
Fire Hydrants
807
122
Building Permits Issued 3 171
Recreation and Culture
Number of Parks 2
Number of Libraries 1 (Operated by Dade County)
Number of Tennis Centers 1
Number of Recreational Centers 1
Employees
Full Time
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SUPPLEMENTARY AUDITOR'S
REPORTS SECTION
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CERIIEIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Inciudin Professional Associations
Report of Independent Certified Public Accountants on
Internal Control Structure Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the
Village) as of and for the year ended September 30 1996 and have issued our report thereon dated
December 5 1996
We conducted our audit in accordance with generally accepted auditing standards Government Auditing
Standards issued by the Comptroller General of the United States Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the general purpose financial statements
are free of material misstatement
The management of the Village is responsible for establishing and maintaining an internal control structure
In fulfilling this responsibility estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and procedures The objectives of an internal
control structure are to provide management with reasonable but not absolute assurance that assets are
safeguarded against loss from unauthorized use or disposition and that transactions are executed in
accordance with managements authorization and recorded properly to permit the preparation of general
purpose financial statements in accordance with generally accepted accounting principles Because of
inherent limitations in any internal control structure errors or irregularities may nevertheless occur and not
be detected Also projection of any evaluation of the structure to future periods is subject to the nsk that
procedures may become inadequate because of changes in conditions or that the effectiveness of die design
and operation of policies and procedures may deteriorate
In planning and performing our audit of the general purpose financial statements of the Village for the year
ended September 30 1996 we obtained an understanding of the design of relevant policies mid procedures
and whether they have been placed in operation and we assessed control risk in order to determine our
auditing procedures for the purpose of expressing our opinion on the general purpose financial statements
and not to provide an opinion on the internal control structure Accordingly we do not express such an
opinion
45
One Southeast Third Avenue Tenth Floor Miami Honda 33131 Dade (300) 377-4228 Fax (305) 377 833
700 Southeast Third Avenue Third Floor Ft Lauderdale Honda 33316 Broward (954) 52o-1040 Fax (9o4) 525 2004
Member fSummit Intemat IAswietesI wthOffi mPrincipal Cite rho gh tth N Id
Member fth Am In utut f Cerhhed Pubh Account ta D mon fo SEC Pr t Sect and tl P t Comp mes Pra t ce Serb
Member fth nondahisfitut fCertified P bh Acc unt is
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Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
Page Two
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Our consideration of the internal control structure would not necessarily disclose all matters in the internal
control structure that might be material weaknesses under standards established by the American Institute of
Certified Public Accountants A material weakness is a condition in which the design or operation of one or
more of the specific internal control structure elements does not reduce to a relatively low level the risk that
errors or irregularities in amounts that would be material in relation to the general purpose financial
statements being audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions We noted no matters involving the internal control structure
and its operations that we consider to be material weaknesses as defined above
However we noted certain matters that we reported to management in the schedule of findings
accompanying this report
This report is intended for the information of the Mayor Village Council management, and the Auditor
General of the State of Florida However this report is a matter of public record and its distribution is not
limited
Miami Florida
[ December 5 1996
a_
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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 of
Financial Statements Performed in Accordance with Government Auditing Standards
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the
Village) as of and for the year ended September 30 1996 and have issued our report thereon dated
December 5 1996
We conducted our audit in accordance with generally accepted auditing standards Government Auditing
Standards issued by the Comptroller General of the United States Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of matenal
misstatements
Compliance with laws regulations contacts grants and state grants and aids appropriations applicable to
the Village is the responsibility of the Villages 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 contacts and grains 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 AudttingStandards
This report is intended for the information of the Mayor Village Council management and the Auditor
General of the State of Florida However this report is a matter of public record and its distribution is not
limited
Miami, Florida
December 5 1996
47
One Southeast Third Avenue Tenth Floor Miami Florida 33131 Dade (30o) 377 4228 Fax (305) 377 8331
700 Southeast Third Avenue Third Floor Ft Lauderdale Florida 33316 Broward (954) 52o 1040 Fax (954) 525 2004
Mmb fSummrt Inter bnalA to Inc with Offi mPnncipiQte Tiro gh tth World
Member fib Amen an Imhoff fCerhned Public A co tantsD fo SEC Pr h Seth andth Pm tC mpm Pr ch Section
M tuber f th fl d lnstitut f Certified P bh A cunt is
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CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Including Professional Assocahons
Management Letter in Accordance with the Rules of the
Auditor General of the State of Florida
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Flonda
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 1996 and have issued a report thereon dated December
5 1996
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing
Standards issued by the Comptroller General of the United States Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the general purpose financial statements
are free of material misstatement
In connection with our audit of general purpose financial statements of the Village for the year ended
September 30 1996 we report the following in accordance with Chapter 10 550 Rules of the Auditor
General Local Government Entity Audits which requires that this report specifically address but not be
limited to the matters outlined in Rule I0 554(1)(f)
1 No inaccuracies irregularities, shortages defalcations or violations of laws rules regulations and
contractual provisions were reported in the preceding annual financial audit
2 The Village during fiscal year 1996 was not in a state of financial emergency as defined by Florida
Statutes 218 5030)
3 The recommendation made in the preceding annual financial audit was not implemented This
matter is reported in the prior year comments and recommendations section of the schedule of
findings accompanying this report
4 Recommendations to improve the Village s present financial management and accounting
procedures are accompanying this report in the schedule of findings
48
One Southeast Third Avenue Tenth Floor Miami Florida 33131 Dade (305) 377 4228 Fax (300) 377 8331
700 Southeast Third Avenue Third Floor Ft Lauderdale Honda 33316 Broward (954) 5251040 Fax (954) 52 2004
Member of Summit Internet IAssocia es In vrthOffices m Pm pal Qhes Duo gh tth W Id
Mnh fth Amer can Institut fCerhhedPbh A unt tsDn f SECP h Sch and the P to Companies PrctceScl
Member fth Plondalnstrtute fC rhfi dPublic A ou tants
CH
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
Page Two
5 During the course of our audit, nothing came to our attention that caused us to believe that the
Village
a Was in violation of any laws rules or regulations
b Made any illegal or improper expenditures
c Had improper or inadequate accounting procedures other than those noted in the schedule of
findings and questioned costs accompany this report.
d Failed to record financial transactions which could have a material effect on the Villages
general purpose financial statements
e Had other inaccuracies irregularities shortages or defalcations
6 The annual financial report for the year ended September 30 1996 has been filed with the
Department of Banking and Finance pursuant to Section 218 32 Florida Statutes and is m agreement
with the audited financial statements of the same period
7 The Village was incorporated by Laws of Flonda 90-142.
This report is intended for the information of the Mayor Village Council management, and the Auditor
lame
General of the State of Florida However this report is a matter of public record and its distribution is not
limited.
Miami Florida
December 5 1996
7
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CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Includin Professional Associations
Report of Independent Certified Public Accountants on
Schedule of Federal and State Financial Assistance
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the
Village) as of and for the year ended September 30 1996 and have issued our report thereon dated
December 5 1996 These general purpose financial statements are the responsibility of the Village s
management Our responsibility is to express an opinion on these general purpose financial statements
based on our audit
We conducted our audit In accordance with generally accepted auditing standards Government Auditing
Standards issued by the Comptroller General of the United States and the provisions of Office of
Management and Budget (OMB) Circular A 128 Audits of State and Local Governments Those standards
and OMB Circular A 128 require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement An audit includes
examining on a test basis evidence supporting the amounts and disclosures in the general purpose financial
statements An audit also includes assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement presentation We believe that our
audit provides a reasonable basis for our opinion
Our audit was made for the purpose of forming an opinion on the general purpose financial statements of
the Village taken as a whole The accompanying Schedule of Federal and State Financial Assistance is
presented for purposes of additional analysis and is not a required part of the general purpose financial
statements The information in that schedule has been subjected to the auditing procedures applied in the
audit of the general purpose financial statements and in our opinion is fairly presented in all material
respects in relation to the general purpose financial statements taken as a whole
Miami Florida
December 5 1996
50
One Southeast Third Avenue Tenth Floor Mianu Florida 33131 Dade (305) 377 4228 Fax (305) 377 8331
700 Southeast Third Avenue Third Floor Ft Lauderdale Florida 33316 Broward (9n4) 5251040 Fax (954) o25 2004
Member ofSmint lnternata atAssocutesl with Offi in Pm Tat Qti Theo gh tth 41 Id
Member Mb Amen Institut £CerhfidPubh Ac aunt ter/ fo RCP m Set dth Pn t Comp Pr t Section
Member fib Ft d Inshmt fCerhfi dPubb A untants
VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE
FISCAL YEAR ENDED SEPTEMBER 30 1996
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Federal Grantor/Pass Through
Grantor Program Title
Federal Major Programs
U S Department of Commerce Economic Development
Administration
Federal Nonmajor Programs
U S Small Business Administration
Pass Through Florida Department of Agriculture and
Consumer Services 1994 SBA National Small
Business Grant
CFDA Grant/Contract No Expenditures
11 300 93 80 1969 $750 000
N/A SBA 28 2666 34 930(1)
U S Department of Justice
COPS FAST 16 710 95 CF WX 5895 20 497(2)
COPS MORE N/A 96 -CM WX 0980 8 095
Pass through Florida Bureau of Justice Assistance
Community Drug and Crime Prevention Program 16 579 96-CJ3S 112301091 4.400(3)
Total federal financial assistance expended 817 922
State Programs
Florida Department of Community Affairs
Hurricane Andrew Recovery and Rebuilding
Trust Fund
Florida Communities Trust
Florida Department of Environmental
Protection Recycling and Education Grant
95ED-3M11 23-02 078
94 040 P4A
RE96 11 8 319
Florida Department of Health and Rehabilitative Services
Office of Emergency Medical Services Pass through
Metro Dade County -EMS County Grant C 9513 7 230
Total state financial assistance expended 15 549
Total federal and state financial assistance expended $833,471
(I) Expenditures do not include local match of $34 930
(2) Expenditures do not include local match of $18,379
(3) Expenditures do not include local match of $4 905
(4) Grant was for recovery of lost revenues Grant receipts for FY 96 were $267 682
(5) Expenditures incurred in FY 94 Grant award to subsidize expenditures received m FY 96 was $699 082
(4)
(5)
51
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CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Includm Professional Assoc hens
Report of Independent Certified Public Accountants on the Internal Control
Structure used In Administering Federal Financial Assistance Programs
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the
Village) as of and for the year ended September 30 1996 and have issued our report thereon dated
December 5 1996 We have also audited the compliance of the Village of Key Biscayne Florida with
requirements applicable to major federal financial assistance programs and have issued our report thereon
dated December 5 1996
We conducted our audit in accordance with generally accepted auditing standards Government Auditing
Standards issued by the Comptroller General of the United States and the provisions of Office of
Management and Budget (OMB) Circular A 128 Audits of State and Local Governments Those standards
and OMB Circular A 128 require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement and whether the Village
complied with laws and regulations noncompliance with which would be material to a major federal
financial assistance program
In planning and performing our audit for the year ended September 30 1996 we considered the internal
control structure of the Village in order to determine our auditing procedures for the purpose of expressing
our opinions on the general purpose financial statements of the Village and on the comphance of the
Village with requirements applicable to federal financial assistance programs and to report on the internal
control structure in accordance with OMB Circular A 128 This report addresses our consideration of
internal control structure policies and procedures relevant to compliance with requirements applicable to
federal financial assistance programs We have addressed internal control structure policies and procedures
relevant to our audit of the general purpose financial statements m a separate report dated December 5
1996
The management of the Village is responsible for establishing and maintaining an internal control structure
In fulfilling this responsibility estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and procedures The objectives of an internal
control structure are to provide management with reasonable but not absolute assurance that assets are
safeguarded against loss from unauthorized use or disposition that transactions are executed in accordance
with management s authonzation and recorded properly to permit the preparation of general purpose
financial statements in accordance with generally accepted accounting pnnciples, and that federal financial
assistance programs are managed in compliance with applicable laws and regulations Because of inherent
limitations in any internal control structure errors irregularities or instances of noncompliance may
nevertheless occur and not be detested
52
One Southeast Third Avenue Tenth Floor Miami Honda 33131 Dade (305) 377 4228 Fax (30o) 377 8331
700 Southeast Third Avenue Thud Floor Ft Lauderdale Florida 33316 Broward (904) 5251040 Fax (954) 523-2004
Memb fSummit l tunas nal As tes In with Offices mFuopalCties Tlu ughoutth R Id
\iemb ofth Amin anlnsbtut fC rbfi dPubh A natant Thy f SECrim h Sett andth Pn toC mean P duce ton
Mmb fthe Fl d lost tote fC GEdPubl A tants
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Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Florida
Page Two
Also projection of any evaluation of the structure to future periods is subject to the risk that procedures may
become inadequate because of changes m conditions or that the effectiveness of the design and operation of
policies and procedures may deteriorate
For the purpose of this report, we have classified the significant internal control structure policies and
procedures used in administering federal financial assistance programs in the following categories
Accounting Controls
Cash Receipts and Disbursements
General Requirements
Political Activity Davis Bacon Act Civil Rights Cash Management Federal Financial Reports
Allowable Costs/Cost Principles Drug free Workplace Act and Administrative Requirements
Specific Requirements
Types of services allowed or not allowed eligibility matching level of' effort, and/or earmarking
claims for advances and reimbursement
For all of the internal control structure categories listed above we obtained an understanding of the design
of relevant policies and procedures and determined whether they have been placed in operation and we
assessed control risk.
During the year ended September 30 1996 the Village of Key Biscayne Florida expended 100% of its total
federal financial assistance under major federal financial assistance programs
We performed tests of controls, as required by OMB Circular A 128 to evaluate the effectiveness of the
design and operation of internal control structure policies and procedures that we considered relevant to
preventing or detecting material noncompliance with specific requirements general requirements and
requirements governing claims for advances and reimbursements and amounts claimed or used for
matching that are applicable to each of the Villages major federal financial assistance programs which are
identified in the accompanying Schedule of Federal and State Financial Assistance Our procedures were
less in scope than would be necessary to render an opinion on these internal control structure policies and
procedures Accordingly we do not express such an opinion
Our consideration of the mternal control structure policies and procedures used in admmistenng 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 matenal 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 nsk that
noncompliance with laws and regulations that would be material to a federal financial assistance program
may occur and not be detected within a timely period by employees in the normal course of performing
their assigned functions We noted no matters involving the internal control structure and its operations that
we consider to be material weaknesses as defined above
53
CH
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Flonda
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 pubhc record and its
distribution is not limited
Miami Florida
December 5 1996
54-
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CERII ED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Including Professional Associations
Report of Independent Certified Pubhc Accountants on Compliance with
General Requirements Applicable to Federal Financial Assistance Programs
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Flonda
We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the
Village) as of and for the year ended September 30 1996 and have issued our report thereon dated
December 5 1996
We have applied procedures to test the Village s compliance with the following requirements applicable to
each of its federal financial assistance programs which are identified in the Schedule of Federal and State
Financial Assistance for the year ended September 30 1996 political activity Davis Bacon Act, civil
nghts cash management, federal financial reports allowable costs/cost principles drug free workplace and
administration requirements
Our procedures were limited to the applicable procedures described in the Office of Management and
Budget s Compliance Supplement for Single Audits of State and Local Governments Our procedures were
substantially less in scope than an audit the objective of which is the expression of an opinion on the
Village s compliance with the requirements listed in the preceding paragraph Accordingly we do not
express such an opinion
With respect to the items tested the results of those procedures disclosed no material instances of
noncompliance with the requirements listed in the second paragraph of this report With respect to items
not tested nothing coming to our attention that caused us to believe that the Village had not complied 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
distribution is not limited
Miami Flonda
r" December 5 1996
55
One Southeast Third Avenue Tenth Floor Miami Flonda 33131 Dade (305) 377 4228 Fax (305) 377 8331
700 Southeast Tlurd Avenue Thud Floor Ft Lauderdale Flonda 33316 Broward (954) 5251040 Fax (954) 525 2004
i Mmber fSrunt intenah nal As notes Inc with Offices ram pal ties The h tth W Id
Member fth Amen Institut fCerhfi dPubh Acco ntant D f SECP ch S t dth Pn t C mp m Pr t Secton
E.« Member fth Flond Instant fCemfied Pubh Acountant
CERIIEIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Including Professional Associations
Report of Independent Certified Public Accountants on Compliance with
Specific Requirements Applicable to Mayor Financial Assistance Programs
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Flonda
We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the
Village) as of and for the }ear ended September 30 1996 and have issued our report thereon dated
December 5 1996
We have also audited the Villages compliance with the requirements governing types of services allowed or
unallowed eligibility matching level of effort or earmarking reporting claims for advances and
reimbursements and amounts claimed or used for matching that are applicable to each of its major financial
assistance programs which are identified in the accompanying Schedule of Federal and State Financial
Assistance for the year ended September 30 1996 The management of the Village is responsible for the
Villages compliance with those requirements Our responsibility is to express an opinion on compliance
with those requirements based on our audit
rses
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L.
We conducted our audit of compliance with those requirements in accordance with generally accepted
auditing standards Government Auditing Standards issued by the Comptroller General of the United
States and Office of Management and Budget (OMB) Circular A 128 Audits of State and Local
Governments Those standards and OMB Circular A 128 require that we plan and perform the audit to
obtain reasonable assurance about whether material noncompliance with the requirements referred to above
occurred An audit includes examining, on a test basis evidence about the Villages compliance with those
requirements We believe that our audit provides a reasonable basis for our opinion
In our opinion the Village complied in all material respects with the requirements governing types of
services allowed or unallowed eligibility matching level of effort, or earmarking- reporting claims for
advances and reimbursements and amounts claimed or used for matching that are applicable to each of its
major federal financial assistance programs for the year ended September 30 1996
This report is intended for the information of the Mayor Village Council management the Auditor General
of the State of Florida and grantor agencies However this report is a matter of public record and its
distribution its not limited
r
Miami Florida
December 5 1996
56
One Southeast Thud Avenue Tenth Floor Miami Flonda 33131 Dade (305) 377-4228 Fax (300) 377 8331
700 Southeast Thud Avenue Thud Floor Ft Lauderdale Florida 33316 Broward (904) 5251040 Fax (954) o2h 2004
Member f5ummi intern tonal& t In with officesm Pon pal Giesllu gho tilt N Id
Member ofth Amencaniamnd f Certified Pubh Accountants D, for SEC Pm hue Scb andth Pn teCspathes P ch 5 t
Mamba f th H rd Institut f Cerbhed Pubh A tants
5167
Rachlin
Cohen &
p. Holtz
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A Partnership Includm Professional Associations
Report of Independent Certified Public Accountants on
Compliance with Specific Requirements Applicable to
NonMator Federal Financial Assistance Program Transactions
Honorable Mayor Village Council and Village Manager
Village of Key Biscayne Ronda
We have audited the general purpose financial statements of the Village of Key Biscayne Florida (the
Village) as of and for the year ended September 30 1996 and have issued our report thereon dated
December 5 1996
7 In connection with our audit of the general purpose financial statements of the Village and with our
consideration of the Village s control structure used to administer financial assistance programs as required
by Office of Management and Budget (OMB) Circular A 128 Audits of State and Local Governments we
selected certain transactions applicable to certain nonmajor financial assistance programs for the year ended
draw September 30 1996 As required by OMB Circular A 128 we have performed auditing procedures to test
compliance with the requirements governing types of services allowed unallowed matching and claims
t— 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 Accordingly we do not express such an opinion
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We respect to the items tested the results of those procedures disclosed no material instances of
noncompliance with the requirements listed in the preceding paragraph With respect to items not tested
nothing carne to our attention that caused us to believe that the Village had not complied in all material
respects with those requirements
This report is intended for the information of the Mayor Village Council management, the Auditor General
of the State of Florida and grantor agencies However this report is a matter of public record and its
distribution is not limited
Miami Florida
December 5 1996
dacidec. •11
57
One Southeast Thud Avenue Tenth Floor Miami Honda 33131 Dade (30o) 377-4228 Fax (305) 377 8331
700 Southeast Thud Avenue Third Floor, Ft Lauderdale Honda 33316 Broward (954) o201040 Fax (934) 525 2004
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Memb fS mwtIntemah nalAsso rotes In wthOffi mPn p ICm Thro ghoutth World
Member f th Amen Instill f Certified Pubh A count is Dna w f SEC Pr co Set dth Pn t C mp m Pr t Sect
Member fth PI d Inshhut fCerhh dPubhcA untants
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VILLAGE OF KEY BISCAYNE, FLORIDA
SCHEDULE OF FINDINGS
FISCAL YEAR ENDED SEPTEMBER 30 1996
L CURRENT YEAR COMMENTS AND RECOMMENDATIONS
Other Matters
1 Condition
Through our review of current insurance policies we noted that the Village maintains $25 000
of public employee blanket bond insurance
Recommendation
We recommend that the Village increase its coverage of public employee blanket bond
insurance
2 Condition
During our audit fieldwork we noted that the final accounting and reporting for general fixed
assets account group general long term debt account group the deferred compensation and
defined contribution agency funds was not completed
Recommendation
In order to maintain an efficient audit process we recommend that the Village prepare the final
accounting and reporting for all funds and account groups prior to the commencement of audit
fieldwork
3 Condition
The Village currently capitalizes all fixed assets with a value greater than $200 Therefore
many insignificant assets are capitalized as fixed assets
Recommendation
We recommend that the Village increase its capitalization threshold to $500 thereby creating
stronger controls over the more significant fixed assets.
58
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VILLAGE OF KEY BISCAYNE FLORIDA
SCHEDULE OF FINDINGS
(Continued)
FISCAL YEAR ENDED SEPTEMBER 30 1996
4 Condition
During our testing of cash we noted that the bank reconciliation of the operating account as of
September 30 1996 did not include the cash management account portion necessary to
reconcile the bank balances to the general ledger balance The risk of not adequately preparing
bank reconciliations is that errors made by the bank or the Village would not be noticed In
addition we noted that the outstanding checklist included checks greater than six months old
that had not been presented for payment
Recommendation
We recommend that monthly bank reconciliations be prepared that includes the cash
management account portion in order to properly reconcile the bank balances to the general
ledger balance We also recommend that the Village establish a policy to waste off checks
outstanding greater than six months
7
IL PRIOR YEAR RECOMMENDATION NOT IMPLEMENTED IN CURRENT YEAR
Compensated Absences
The recordkeeping function for compensated absences (vacation and sick leave) is handled by
the responsible departments (general employees police and fire) The recordkeeping for the
general employees was inadequate as there was no written authorization for used vacation and
sick leave time We recommend that the Village require written authorization for vacation and
sick leave time approved by supervisory personnel and maintain those leave records in the
personnel files We also recommend the Village review the recordkeepmg function of the police
and/or fire departments and adopt similar procedures This matter also applies to the current
year
Management s Response
The Village has established policies to ensure that wntten authorization for vacation and sick
leave used by the employee is obtained and that the leave records are maintained in their
personnel file
59