HomeMy Public PortalAbout13-8731 Approving the Financial State for the Period Ending September 2012 Sponsored by: City Manager
RESOLUTION NO. 13-8731
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF OPA LOCKA, FLORIDA, APPROVING THE
AUDITED FINANCIAL STATEMENT FOR THE PERIOD
ENDED SEPTEMBER 30, 2012; PROVIDING FOR
INCORPORATION OF RECITALS; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the city of Opa-locka has received an audited financial statement for the
period ended September 30, 2012 from the City's outside auditors; and
WHEREAS, after review and examination of the audited financial statement for the
period ended September 30, 2012, the City Commission of the City of Opa-locka has approved
the audited financial statement;
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION
OF THE CITY OF OPA LOCKA, FLORIDA:
Section 1. The recitals to the preamble are hereby incorporated by reference.
Section 2. The City Commission of the City of Opa-locka, hereby approves the
audited financial statement for the period ended September 30, 2012, in the form attached hereto.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 31St day of -cember, 2613.
A _■ --Ar
/
YRA TA 'OR
MAYOR
test to:
J a Flores
City Clerk
Resolution No. 13-8731
Approved as to orm and legal sufficiency:
1
11(1.i d i Jo:°phS. e.11er
V ' EENSP 00 ON MARDER PA
ty Attorney
Moved by: COMMISSIONER HOLMES
Seconded by: COMMISSIONER SANTIAGO
Commission Vote: 5-0
Commissioner Holmes: YES
Commissioner Johnson: YES
Commissioner Santiago: YES
Vice-Mayor Kelley: YES
Mayor Taylor: YES
e� 9 O' O
City of Opa-Locka
Agenda Cover Memo
Commission Meeting 12/31/2013 Item Type: Resolution Ordinance Other
Date: X
(EnterX in box)
Fiscal Impact: Ordinance Reading: 1st Reading 2nd Reading
(EnterX in box) Yes No (Enter in box)
X Public Hearing: Yes No Yes No
(Enter X in box)
Funding Source: (Enter Fund&Dept) Advertising Requirement: Yes No
(Enter Acct No.) N/A (Enter X in box)
ITEM BUDGETED:
YES
NO
Contract/P.O. Required: Yes No RFP/RFQ/Bid#:
(EnterX in box) X N/A
Strategic Plan Related Yes No Strategic Plan Priority Area: Strategic Plan Obj./Strategy: (list the
(Enter X in box) X specific objective/strategy this item will address)
Enhance Organizational El
Bus.&Economic Dev El N/A
Public Safety El
Quality of Education 0
Qual.of Life&City Image p
Communcation El
Sponsor Name City Manager Department: Finance
Short Title:
A resolution of the City of Opa-locka, Florida authorizing the City Commission to approve the audited
financial statements for the period ended September 30, 2012.
Staff Summary:
Statement reflecting City's financial information audited for Fiscal Year Ended September 30, 2012.
Proposed Action:
Staff recommends approval.
Attachment:
Audited Financial Statement for the period ended September 30, 2012.
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OrMilwo-
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Memorandum
TO: Mayor Myra L.Taylor
Vice Mayor Joseph L.Kelley
Commissioner Timothy Holmes
Commissioner Dorothy Johnso t '
Commissioner Luis B.Santiago
FROM: Kelvin L. Baker, Sr.,City Man
DATE: December 1 I,2013
RE: Fiscal Year 2012 Audited Financial Statement
Request: A Resolution of the City of Opa-locka,Florida authorizing the City Commission
to approve the audited financial statement for the period ended September 30,
2012.
Description: Audited financial statement for the period ended September 30,2012.
Account Number: N/A
Financial Impact: N/A
Implementation Time Line: Immediately.
Legislative History: None
Analysis: N/A
Recommendation(s): Staff recommends approval.
Attachments: Audited financial statement for the period ended September 30,2012.
Prepared by: Susan Gooding-Liburd, Finance Director
End of Memorandum
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December 28,2013
To the Citizens,the Honorable Mayor,City Commissioners
and City Manager of the City of Opa-locka:
I
It is my pleasure to submit the Audited Financial Report for the City of Opa-locka,Florida, for the fiscal year
ended September 30,2012,pursuant to Section 218.39 of the Florida Statutes, Chapter 10.550 of the Rules of 1
the Auditor General of the State of Florida and the City Charter. The financial statements included in this
report conform to accounting principles generally accepted in the United States of America as prescribed by
the Governmental Accounting Standards Board (GASB). This report is published to fulfill that requirement
for the fiscal year ended September 30,2012.
Management assumes full responsibility for the completeness and reliability of the information contained in
this report,based upon a comprehensive framework of internal control that it has established for this purpose.
Because the cost of internal control should not exceed anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
The financial statements have been audited by Harvey, Covington & Thomas, LLC, a firm of licensed
certified public accountants. The independent auditors have issued an unqualified opinion on the City's
financial statements for the year ended September 30,2012. The independent auditors'report is located at the
front of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditors' report and
provides narrative introduction,overview,and analysis of the basic financial statements. MD&A complement
this letter of transmittal and should be read in conjunction with it.
Profile of the Government
The City of Opa-locka was incorporated in 1926 and operates under a Commission/City Manager form of
government. The City Commission is comprised of the Mayor and four Commissioners,who are responsible
for enacting ordinances, resolutions, and regulations governing the City; and appointing the members of
various advisory boards. Additionally, the City Commission appoints the City Manager, the City Attorney
and the City Clerk. As Chief Administrative Officer,the City Manager is responsible for the enforcement of
laws and ordinances,and the appointment and supervision of the City's department heads. I
The City provides a full range of services, including police, construction and maintenance of highways and
streets and other infrastructure,recreational and cultural activities,water and wastewater, sanitation,planning
and zoning,and general administrative services.
For additional information concerning our City,please visit our website at www.opalockafl.gov.
-1-
780 FISHERMAN STREET, SUITE 335,OPA-LOCKA,FLORIDA 33054(305)688-4611
www.opalockafl.gov
The financial reporting entity,under which the financial statements are prepared,includes all the activities
and functions for which the City is financially accountable.
The City is required to prepare, approve, adopt and execute an annual budget. This annual budget serves
as the foundation for the City's financial planning and control. Budgetary control is maintained at the
departmental and fund level, with the finance department providing support to departments in the
administration of their budgets. In accordance with the city's budget transfer policy, the city manager is i
authorized to transfer budgeted amounts within any fund or function; however, any supplemental
appropriations or revisions that amend the total adopted budget must be approved by the City
Commission. Budget to actual comparisons are provided in this report for all of the City's funds that
have an appropriated annual budget.
LOCAL ECONOMY
The City of Opa-locka comprises approximately 4.2 square miles, has a population of approximately
16,000 and is located in the northern portion of Miami-Dade County. The City is a mix of residential,
commercial and industrial zones with the Opa-locka airport, which is owned and operated by Miami-
Dade County, being its best known landmark. The City of Opa-locka community is served by two
elementary schools.
This year has been very challenging with a further decline in tabire li pfo y values and the
implementation of legislative measures that have placed limits on how local governments can levy ad
valorem taxes today and into the future.
The economic decline, which began in fiscal year 2007, continued to negatively impact the City during
fiscal year 2012. Revenue sources that are directly related to consumers spending declined in the past
three years. Home prices continued to decline and properties under foreclosures in the City of Opa-locka
at the beginning of the fiscal year were approximately more than 75. The taxable property value in the
City declined by 8.91%compared to the prior tax year.
The reliance on grant funds has risen due to decreases in other revenue sources. The City is aggressively
applying for grants to supplement city monies to fund services, especially in the area of public safety,
parks and recreation and infrastructure improvement.
National and state economics continue to be key factors in assessing the City's future fiscal picture.
Changes in the national, state and local economies can affect both revenues and expenditures, due to the
impact on tax receipts, revenue sharing, and the costs of providing city services. The 2012 census,
recently completed,is anticipated to have some impact on revenue sharing for the City.
LONG-TERM FINANCIAL PLANNING
The City of Opa-locka's current focus related to economic growth is the creation of a community
redevelopment agency (CRA) to help promote redevelopment in the City. The City has started this
process by hiring an outside consultant to identify area of community redevelopment and prepare a
Community Redevelopment Plan.
The designs for the major repairs of the City's four pump stations have been completed and permitted and
construction is ready to commence any time soon. When finished,this project will allow the City to issue
business permits to new businesses whose applications are currently pending.
In compliance with the City's financial integrity ordinance, the City's annual budget is adopted with the
provision of $500,000 for contingency reserve. As of September 30, 2012, the City's unreserved,
undesignated general fund balance was 8.7% of general fund's fiscal year 2012 budget. The importance
-ii-
of monitoring the City's fund balance levels has become an integral part of the overall financial planning
of the City.
MAJOR INITIATIVES
It is no doubt that the fiscal year 2012 is another year full of challenges. This year our priorities include
the construction of much needed repairs of 143`d Street and Alibaba Avenue, major repairs of four pump
stations, implementation of free citywide bus route and the Ingram Park lakefront project. The most
visible initiative for this fiscal year will be the construction of Helen Miller Community Center, and
identifying a permanent location for the City of Opa-locka's Administrative Offices and long term
solution for our Police Department Headquarters.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement of Excellence in Financial Reporting to the City for its Comprehensive
Annual Financial Report (CAFR) for the fiscal year ended September 30, 2011. This was the sixth
consecutive year that the City has earned this prestigious award. In order to be awarded a Certificate of
Achievement for Excellence in Financial Reporting, the City had to publish an easily readable and
efficiently organized CAFR that satisfied both generally accepted accounting principles and legal
requirements.
A Certificate of Achievement is valid for a period of one year only. Unfortunately the City did not submit
a Comprehensive Annual Financial Report for the fiscal year ended September 30, 2012. We are
confident that we will submit a Comprehensive Annual Financial Report for FY2013 and continue
receiving that prestigious designation once again.
In addition, the City also received the GFOA's Distinguished Budget Presentation Award for its FY
2011-2012 budget document. In order to qualify for the Distinguished Budget Presentation Award, the
City's budget document had to be judged proficient as a policy document, a financial plan, an operations
guide, and a communications device.
The preparation of this report would not have been possible without the efficient and dedicated service of
the entire staff of the Finance Department and other departments. We wish to express our appreciation to
the City Manager for his effective leadership, all the Departments who assisted and contributed to the
preparation of this report. We acknowledge the services of Harvey, Covington and Thomas, LLC, the
City's independent auditors.
In closing, without the leadership and support of the Mayor, the Commissioners, and the City Manager
the accomplishments and future successes noted in this report would not have been possible.
Respectfully submitted,
t '
Susan A. Gooding-Liburd,CPA,CGFO
Finance Director
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CITY OF OPA-LOCAKA, FLORIDA
List of Principal Officials
CITY COMMISSION
MYRA TAYLOR
Mayor
Joseph Kelly Timothy Holmes
Vice Mayor
Commissioner F
Dorothy Johnson Luis Santiago
Commissioner Commissioner
CITY EXECUTIVE MANAGEMENT
Kelvin Baker, Sr.
City Manager
Joanna Flores
City Clerk
Joseph Gellar, P.A.
City Attorney
Susan Gooding-Liburd, CPA, CGFO
Finance Director
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INDEPENDENT AUDITOR'S REPORT
To the City Commission and honorable Mayor
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City of Opa-Locka, State of Florida
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of City of
Opa-Locka, State of Florida ("the City") as of and for the year ended September 30, 2012, which
collectively comprise the City's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the City's, management. Our responsibility is to
express opinions on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement.An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles
used and the 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
opinions.
The City's financial statements do not disclose its obligation for Other Post Employment Benefits
(OPEB) from its long-term liabilities in the accompanying statement of net assets. In our opinion,
disclosure of that information is required to conform with accounting principles generally accepted
in the United States of America. We were unable to determine the effect on the City's long-term
liabilities due to the omission of the OPEB liability, since an actuarial determination was not
performed.
In our opinion, except for the effects of such adjustments, if any, as might have been determined
to be necessary had we been able to satisfy ourselves about the OPEB liability, the financial
statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the City as of September 30, 2012, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
December 31, 2013, on our consideration of the City's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary comparison information on pages X
through X and XX through XX be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's financial statements as a whole. The combining and individual
nonmajor fund financial statements are presented for purposes of additional analysis and are not
a required part of the financial statements. The accompanying schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is also not a required part of the financial statements. The combining and
individual nonmajor fund financial statements and the schedule of expenditures of federal awards
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements as a whole.
Harvey CoyiNtnanOATITmief South Florida, LLC
Hollywood, Florida
December 31, 2013
CITY OF OPA-LOCKA,FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Opa-locka, we offer readers of the City's fmancial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended
September 30,2012. We encourage readers to consider the information presented here in conjunction
with additional information that we have furnished in our letter of transmittal, which can be found on
pages i-iii of this report.
FINANCIAL HIGHLIGHTS
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The assets of the City exceeded its liabilities at the close of the most recent sal year. The
City's total net assets equals $29,867,447 million. Of this amount, $7.9 million(unrestricted net
assets)may be used to meet the City's ongoing obligations to citizens and creditors.
The City's total net assets increased by$ 6.1 million.
The City's governmental funds reported combined ending fund balances of$ 3.752 million, an
increase of$ 1.245 million in comparison with the prior year.
At the end of the current fiscal year, unassigned, undesignated fund balance for the general fund
was$.809 million.
OVERVIEW OF THE FINANCIAL STATEMENTS
This management's discussion and analysis are intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements comprise of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of
the City's finances in a manner similar to a private-sector business.
The statement of net assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the
most recent fiscal year.All changes in net assets are reported as soon as the underlying event giving
rise to the change occurs,regardless of the timing of related cash flows. Thus,revenues and expenses
are reported in the statement for some items that will only result in cash flows in future fiscal periods
(for example,uncollected taxes,and earned,but unused vacation leave).
Both the statement of net assets and the statement of activities of the government-wide financial
statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenues(governmental activities)from other functions that are intended to
3
CITY OF OPA-LOCKA,FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
recover all or a significant portion of their cost through user fees and charges (business-type
activities). The governmental activities of the City include general government, public safety, roads
and streets, culture and recreation. The business-type activities of the City include water and sewer,
solid waste,and storm water operations.
The government-wide financial statements can be found on pages 12-13 of this report.
Fund Financial Statements }
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City can be
divided into two categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements.However,unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund statement
of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the
comparison between governmental funds and governmental activities.
The City maintains thirteen (13) individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the general fund, peoples transportation, capital
improvement debt service fund and the safe neighborhood capital projects fund which are considered
to be major funds. Data from the other nine (9) governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds are
provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for the general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with budget.
The basic governmental fund financial statements can be found on pages.V47 n
Proprietary funds. The City maintains one type of proprietary fund. Enterprise finds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The City uses enterprise funds to account for its water and sewer, storm water and solid
waste operations.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail.The proprietary fund financial statements provide separate information for the
4
CITY OF OPA-LOCKA,FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
water and sewer, storm water and solid waste operations. Water and sewer is the enterprise
rise
fund of the City.
J IP
The basic proprietary fund financial statements can be found on pages 18-20 of this report.
Notes to the Basic Financial Statements
The notes to the financial statements provide additional information that is essential for a full
understanding of the information provided in the government-wide and fund financial statements.
The notes to the fmancial statements can be found on pages xx of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS caAFT
As noted earlier,net assets may serve over time as a useful indicator of a government's financial
position. In the case of the City,assets exceeded liabilities by$29.9 million at the close of the most
recent fiscal year.This was an increase of approximately 25.9%compared to last year's net assets of
$23.724 million.
By far the largest portion of the City's net assets (58 %)reflects its investment in capital assets (e.g.,
land, buildings and building improvements, and equipment), less any related debt used to acquire
those assets that is still outstanding. The City uses these capital assets to provide services to its
citizens; consequently these assets are not available for future spending. Although the City's
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
City of Opa-locka's Net Assets-Government-wide
Governmental Business-type
Activities Activities Total
2012 2011 2012 2011 2012 2011
Current and other assets $ 7,464,040 $ 4,547,320 $ 11,160,824 $ 10,429,129 $ 18,624,864 S 14,976,449
Capital assets,net 17,107,512 16,212,546 12,103,478 11,647,475 29,210,990 27,860,021
Total assets 24,571,553 20,759,866 23,264,302 22,076,604 47,835,855 42,836,470
Long-term liabilities 8,593,529 8,879,285 4,577,953 5,165,746 13,171,482 14,045,031
Other liabilities 2,170,681 2,031,178 2,681,332 3,036,282 4,852,013 5,067,460
Total liabilities 10,764,210 10,910,463 7,259,285 8,202,028 18,023,495 19,112,491
Net assets:
Invested in capital assets,
net of related debt 9,566,054 8,402,867 7,757,445 6,733,269 17,323,499 15,136,136
Restricted 3,424,112 2,651,381 411,671 411,671 3,835,783 3,063,052
Unrestricted 809,006 (1,204,846) 7,899,159 6,729,636 8,708,165 5,524,790
Total net assets $ 13,799,172 $9,849,402 $ 16,068,275 $ 13,874,576 $29,867,447 $23,723,978
5
CITY OF OPA-LOCKA,FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
1
An additional portion of the City's net assets(13%)represents resources that are subject to external
restrictions on how they may be used.The remaining balance of unrestricted net assets(29%)may be
used to meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year,the City is able to report positive balances in all three categories
of net assets as a whole,as well as for its separate governmental and business-type activities.The
same situation held true for the prior fiscal year.
City of Opa-locka's Changes in Net Assets f F
Governmental Business-type
Activities Activities Total
2012 2011 2012 2011 2012 2011
Revenues:
Program revenues:
Charges for services $ 1,916,190 $ 871,234 $ 11,585,469 $ 8,634,464 $ 13,501,659 $ 9,505,691
Operating/capital grants and cont. 1,916,028 1,805,571 -
1,916,028 1,805,571
General revenues:
Property taxes 6,736,248 6,429,836 - - 6,736,248 6,429,83E
Other taxes 3,356,846 3,720,486 - - 3,356,846 3,720,48E
Intergovernmental,unrestricted 1,474,792 1,606,396 - 1,474,792
-
1,606,39E
Unrestricted interest earnings 1,908 8,761 1,608 22,501 3,516 31,262
Miscellaneous 550,171 198,704 69,479 37,283 619,650 235,981
Transfers 2,000,000 275,000 (2,000,000) (275,000) -
Total revenues 17,952,183 14,915,988 9,656,556 8,419,248 27,608,740 23,335,23E
Expenses and transfers
General government 5,402,679 5,258,247 - - 5,402,679 5,258,24
Public safety 5,570,149 5,856,372 - - 5,570,149 5,856,372
Highways and streets 1,744,207 3,000,577 - - 1,744,207 3,000,57r
Culture and recreation 982,440 1,179,470 - - 982,440 1,179,47(
Human services 278,733 - 278,733
Interest and fiscal charges 302,938 361,712 - - 302,938 361,712
Water and sewer - - 5,954,797 5,446,235 5,954,797 5,446,235
Stormwater - - 1,145,855 1,203,020 1,145,855 1,203,02C
Solidwaste - - 362,205 291,418 362,205 291,41E
Transfers - - - - -
Total Expenses 14,002,413 15,935,111 7,462,857 6,940,673 21,465,270 22,875,784
Increase(decrease)in net assets 3,949,770 (1,019,123) 2,193,700 1,478,575 6,143,470 459,452
Net assets,beginning as restated 9,849,402 10,868,525 13,874,576 12,396,001 23,723,978 23,264,52E
Net assets,ending $ 13,799,172 $ 9,849,402 $ 16,068,276 $ 13,874,576 $ 29,867,448 $ 23,723,971
6
CITY OF OPA-LOCKA,FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Governmental Activities
Governmental activities increased the City's net assets by $3.859 million. Key elements of this
increase are as follows:
Property taxes increased by$306,412.
Increase in fines and forfeitures by$364,698.
Total expenses decreased by$1,172,056 due to a decrease in capital outlay expenditure,major
capital outlay was done in prior year that now sit on our books as capital assets.Total increase
in the General Government expenditure function was due primarily to increase in personnel
costs.
Business-type Activities
Business-type activities increased the City's net assets by $ 2.185 million. Key elements of this
increase are as follows:
Charges for services increased significantly due to utility rate increase. For the water and
sewer utility,total expenses increased due to increase in personnel costs.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS hA T
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the City's funding
requirements.In particular, unassigned fund balance may serve as a useful measure of a government's
net resources available for spending at the end of the fiscal year.
As of the end of fiscal year 2012, the City's governmental funds reported combined ending fund
balances of$3.760 million, an increase of$.243 million in comparison with the prior year.Most of the
fund balance is restricted to indicate that it is not available for new spending because it has already
been committed to 1)pay debt service($1.1 million), 2)pay capital project costs($2.2 million), or 3)
various other restricted purposes($.78 million).
General Fund
The general fund is the chief operating fund of the City.At the end of the current fiscal year,the total
fund balance reached$1.225 million.
The fund balance of the City's general fund decreased by$ 1.0 million during the current fiscal year.
Key factors in this decrease are as follows:
7
CITY OF OPA-LOCKA,FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Total revenues of the general fund decreased by 8% due to decrease in utility service taxes,
communication service taxes, franchise fees and charges for services, which were offset by
the increase in property taxes, licenses and permits, fines and forfeitures and other revenues.
Utility taxes decreased by$237,037 as compared to last
i
fiscal year. The other revenue sources mentioned above are directly related to consumer
spending and the decrease could be attributed to the current economic condition of the local
and national economy.
Total expenditures of the general fund decreased by 8% due to decreases in expenditures in
public safety,highways and streets, culture and recreation and capital outlay. Increase in the
expenditure of the general government function is primarily due to termination and
settlements payment made by the City in current year.
I
I
Increase Percent
2012 Percent 2011 Percent (Decrease) of Increase
General Fund Revenues Amount of Total Amount of Total From 2011 (Decrease)
Property $ 6,736,248 54% $6,429,836 47% $ 306,412 5%
Utility service taxes 863,608 7% 1,100,645 8% (237,037) -22%
Communication service taxes 559,299 4% 611,700 5% (52,401) -9%
Local option,use and fuel taxes 275,054 2% 284,901 2% (9,847) -3%
Franchise fees 1,452,012 12% 1,499,291 11% (47,279) -3%
Local business taxes 206,873 2% 223,949 2% (17,076) -8%
Licenses and permits 624,671 5% 317,689 2% 306,982 97%
Intergovernmental 456,765 4% 344,759 3% 112,006 32%
Charges for services 32,788 0% 75,128 1% (42,340) -56%
Fines and forfeitures 843,115 7% 478,417 4% 364,698 76%
Interest 1,888 0% 7,451 0% (5,563) -75%
Other revenue 437,914 3% 193,204 1% 244,710 127%
Transfers - 0% 1,998,799 14% (1,998,799) -100%
Total Revenues $ 12,490,235 100% $13,565,769 100% (1,075,534) -8%
7 7 r, F.
Expenditures in the general fund are shown in the following schedule W
Increase Percent
2012 Percent 2011 Percent (Decrease) of Increase
General Fund Expenditures Amount of Total Amount of Total From 2011 (Decrease)
General government 5,993,635 44% 4,998,255 34% 995,380 20%
Public safety 5,040,165 37% 5,665,728 38% (625,563) -11%
Highways and streets 1,320,563 10% 2,307,499 15% (986,936) -43%
Culture and recreation 806,995 6% 1,147,780 8% (340,785) -30%
Capital outlay 566,382 3% 770,535 5% (214,153) -28%
Debt service - 0% - 0% - 0%
Total expenditures 13,717,740 100% 14,889,797 100% (1,172,056) -8%
At the end of the current year, the Safe Neighborhood Capital Projects Fund increased its fund
balance by approximately$42,000.For the fiscal year ended September 30, 2012,the City completed
the construction of Sherbondy Village, the8 biggest capital project of the City. Sherbondy
Village composed of a gymnasium and a swimming pool.
CITY OF OPA-LOCKA,FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Proprietary Funds
The City's proprietary fund statements provide the same type of information found in the government-
wide financial statements,but in more detail.
The unrestricted net assets of the water and sewer, storm water and solid waste funds at the end of the
current fiscal year amounted to $6.8 million and$ .088 million, respectively. The total increase in net
assets for all enterprise funds was $.348 million. Other factors concerning the finances of these funds
have already been addressed in the discussion of the City's business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year there was a $245,571 increase in the appropriations between the original and final
amended budget.Following are the main components of the increase:
Additional increase in Community Development;
$155,000 for community challenge grant
$90,571 for employee separation cost
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's investment in capital assets for its governmental and business-type activities as of
September 30, 2012 amounts to $17.3 million (net of accumulated depreciation). This investment in
capital assets includes land, buildings and buildings improvement, machinery and equipment, park
facilities,roads and utility systems. The total increase in the City's investment in capital assets for the
current fiscal year was 13%.
Major capital assets additions during the current fiscal year included the following:
Construction began the Helen Miller Building.
143rd Street road improvement project
Lift station and pump stations construction
Sherbondy Village project completion.
9
CITY OF OPA-LOCKA,FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
City of Opa-locka's Capital Assets
(net of accumulated depreciation)
Governmental Business-type
Activities Activities Total
2012 2011 2012 2011 2012 2011
Land $ 3,042,475 $ 3,042,475 $ 14,762 $ 14,762 $ 3,057,237 $ 3,057,237
Construction in progress 438,132 5,647,455 88,312 1,058,327 526,444 6,705,782
Buildings and building improvements 5,973,092 787,370 - - 5,973,092 787,370
Utility plant and systems - - 10,832,352 10,870,794 10,832,352 10,870,794
Furniture and equipment 1,371,226 1,587,790 - - 1,371,226 1,587,790
Infrastructure 6,282,587 5,147,456 1,089,760 (296,413) 7,372,347 4,851,043
Total $17,107,512 $16,212,546 $12,025,186 $11,647,470 $29,132,698 $27,860,016
Additional information on the City's capital assets can be found in Note 7 on pages 31-32 of this
report.
Long Term Debt
At the end of the current fiscal year the city had total debt outstanding of$11.804 million
Additional information on the City's long-term debt can be found on Note 9 on pages 33-36 of this
report.
za
City of Opa-locka's Outstanding Debt
Governmental Business-type p - Percentage
Activities Activities Total Change
2012 2011 2012 2011 2012 2011 2012-2011
Revenue Bonds $ 7,355,000 $ 7,713,000 $ - $ - $ 7,355,000 $ 7,713,000 -4.64%
Capital Leases 186,458 96,679 1,549,367 1,897,743 1,735,825 1,994,422 -12.97%
Loans - - 2,796,668 3,016,463 2,796,668 3,016,463 -7.29%
Liability o FDOT - 46.15%
tY 73,845 137,140 73,845 137,140
Total $ 7,541,458 $ 7,809,679 $ 4,419,880 $ 5,051,346 $ 11,961,338 $ 12,861,025 -0.07%
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
In developing the Fiscal Year 2013 budget,the following economic and other factors were considered:
The City's gross property taxable value for operating purposes decreased for the third consecutive year.
Special programs funding were reduced.
Directive from the City Commission to preserve all full-time employees.
Freezing all salaries that are not impacted by union negotiations.
The fiscal year 2013 budget approved millage rate is 9.1000.
10
CITY OF OPA-LOCKA,FLORIDA
MANAGEMENT'S DISCUSSION AND ANALYSIS(continued)
During fiscal year 2013,the City will be looking at the following programs/initiatives;
Using CRA and other tools to continue redevelopment opportunities.
Complete$3.7 million Sherbondy Park improvement project.
Continue upgrades to bring all the City's pump stations out of moratorium.
Commence construction on the new Helen Miller Center and Improvement to Segal Park.
Implement new revenues enhancement sources
Identify a permanent location for the City of Opa-locka's Administrative Offices.
All of these factors were considered in preparing the City of Opa-locka's budget for the 2013 fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the City of Opa-locka's finances for all
those with an interest in its finances. Questions concerning any of the information provided in this report
or requests for additional information should be addressed to The City of Opa-locka,Finance Department,
3400 Opa-locka Boulevard,Building B, Opa-locka,Florida 33054.
Cy"
I.
11
CITY OF OPA-LOCKA,FLORIDA
STATEMENT OF NET ASSETS Ei.:i''2 A F T
SEPTEMBER 30,2012
Governmental Business-type
Activities Activities Total
ASSETS
Cash and equity in pooled cash $ 3,434,611 $ 10,355,485 $ 13,790,096
Receivables,net 675,301 2,475,330 3,150,630
Internal balances 7,083,022 2,222,464 9,305,486
Due from other Gov 718,602 200,000 918,602 j
Inventories 13,579 4,654 18,233
Other assets 128,523 78,291 206,814
Restricted cash and cash equivalents 259,925 - 259,925
Capital assets,not being depreciated 3,480,607 103,074 3,583,681
Capital assets,being depreciated,net 13,319,266 11,922,116 25,241,382
Total assets 29,113,436 27,361,414 56,474,850
LIABILITIES
Accounts payable and accrued liabilities 838,800 562,268 1,401,068
Overdrawn cash 1,296,725 1,649,784 2,946,509 I
Internal accounts payable 6,382,421 2,923,072 9,305,492
Deposits 1,970,508 1,970,508
Advances - (467,958) (467,958)
Unearned 35,189 - 35,189
Due to other Gov - 85,660 85,660
Compensated absences 1,052,070 158,073 1,210,143
Noncurrent liabilities:
Due within one year 477,298 651,220 1,128,518
Due in more than one year 7,064,161 3,768,698 10,832,859
Total liabilities 17,146,664 11,301,325 30,097,771
NET ASSETS 1
Invested in capital assets,net of related debt 9,735,712 15,793,889 25,529,600
Restricted for:
Other assets 142,102 - 142,101
Capital projects 289,718 - 289,718
Transportation 2,217,761 - 2,217,760
Public safety 77,733 - 77,733
Debt covenants 1,128,620 411,671 1,540,291
Unrestricted (1,624,875) (145,469) (1,770,344)
Total net assets $ 11,966,771 $ 16,060,091 $ 28,026,861
See notes to basic financial statements.
-12-
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CITY OF OPA-LOCKA,FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30,2012
Other
Peoples Capital Projects Safe Nonmajor Total
General Transportation Improvement Neighborhood Governmental Governmental
Fund Tax Debt Service Capital Projects Funds Funds
ASSETS
Cash and equity in pooled cash $ 203,698 $ 2,252,493 $ - $ 453,538 $ - $ 2,909,729
Receivables,net 558,028 - 117,273 391,664 50,849 1,117,814
Other Gov account receivables 276,089 - - - 276,089
Due from other funds 5,142,806 - 1,310,373 118,784 511,060 7,083,023
Inventories 13,579 - - -
13,579
Prepaid items 128,521 - - - - 128,521
Restricted cash and cash equivalents - - 524,881 - 259,927 784,808
Total assets $ 6,322,721 $ 2,252,493 $ 1,952,527 $ 963,986 $ 821,836 $ 12,313,564
LIABILITIES AND FUND BALANCES •
Liabilities:
Accounts payable and accrued liabilities $ 626,681 $ 89,778 $ 42,757 $ 34,164 $ 16,480 $ 809,860
Overdrawn cash 1,296,725 - - - - 1,296,725
Due to other funds 3,122,140 - 781,162 1,219,540 1,259,592 6,382,434
Deferred revenues 14,252 - - 20,937 35,189
Total liabilities 5,059,798 89,778 823,919 1,253,704 1,297,009 8,524,208
Fund balances:
Nonspendable:
Inventories °' 13,579 - - - 13,579
Prepaid items 128,521 - - - - 128,521
Restricted for:
Public safety - - - - 77,733 77,733
Transportation - 2,162,715 - - 55,046 2,217,761
Debt service - - 1,128,608 - 1,128,608
Physical environment
Unassigned:
General fund 1,120,823 - - - (607,952) 512,871
Special revenue funds - - - -
Capital projects funds - _ - (289,718) - (289,718)
Total fund balances 1,262,923 2,162,715 1,128,608 (289,718) (475,173) 3,789,355
Total liabilities and fund balances $ 6,322,721 $ 2,252,493 $ 1,952,527 $ 963,986 $ 821,836 $ 12,313,563
I
See notes to basic financial statements.
-14-
CITY OF OPA-LOCKA,FLORIDA
RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
SEPTEMBER 30,2012
Fund balances-total governmental funds(Page 14) $ 3,760,427
Amounts reported for governmental activities in the statement
of net assets are different because:
Capital assets used in governmental activities are not
financial resources and,therefore, are not reported in the
governmental funds.
GASB 34 Capital Assets Net of Accum.Depreciation 16,799,873
Debt (7,541,459)
Compensated Absences (1,052,070)
Net adjustment 8,206,344
Net assets of governmental activities(Page 12) $ 11,966,771
See notes to basic financial statements.
-15-
CITY OF OPA-LOCKA,FLORIDA
STATEMENT OF REVENUES,EXPENDITURES AND CIIANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2012
Other
Peoples Capital Safe Nonmajor Total
Transportation Improvement Neighborhood Governmental Governmental
General Tax Debt Service Capital Projects Funds Funds
REVENUES:
I
Taxes:
Property taxes $ 6,736,248 $ - $ - $ - $ - $ 6,736,248
Utility taxes 863,608 - - - - 863,608
Communications service taxes 559,299 - - - - 559,299
Local option,use and fuel taxes 275,054 - - - - 275,054
Local business taxes 206,873 - - - 206,873
Franchise fees 1,452,012 - - - - 1,452,012
Permits and fees Y 624,671 - - - - 624,671
Intergovernmental r-,., rmt. i',:,%,,,, al 456,765 438,524 1,463,335 873,837 158,359 3,390,820
Charges for services , - 32,788 - - - 32,788
Fines and forfeitures ;u✓ . 843,115 - - - - 843,115
Interest 1,888 - 7 7 6 1,908
Other 437,914 - - - 21,180 459,094
Total revenues 12,490,234 438,524 1,463,342 873,844 179,545 15,445,490
EXPENDITURES:
Current: j
General government 5,993,332 - - - 69,910 6,063,242
Public safety 5,040,165 - - - 163,833 5,203,998
Highways and streets 1,320,563 121,218 - - - 1,441,781
Culture and recreation 806,995 - - - 200,692 1,007,687
Capital outlay 556,382 - - 1,063,264 85,464 1,705,110
Debt service:
Principal - - 358,000 - - 358,000
Interest - - 302,938 - - 302,938
Bond issuance cost - - - - - -
Total expenditures 13,717,437 121,218 660,938 1,063,264 519,899 16,082,757
Excess(deficiency)of revenues
over expenditures (1,227,203) 317,307 802,404 (189,420) (340,354) (637,265)
OTHER FINANCING SOURCES(USES):
Debt proceeds 212,176 - - - - 212,176 1
Payment to refunded bond escrow agent - - - - - -
Transfers in - - - 2,000,000 - 2,000,000
Transfers out - - - - - -
Total other tinancing sources(uses) 212,176 - - 2,000,000 2,212,176
Net change in fund balances (1,015,027) 317,307 802,404 1,810,580 (340,353) 1,574,911
Fund balances,beginning 2,249,012 1,845,408 326,214 (1,768,672) (134,822) 2,517,140
Prior period adjustment - - - (331,626) - (331,626)
Adjusted Beg.Balance 2,249,012 1,845,408 326,214 (2,100,298) (134,822) 2,185,514
Fund balances,ending $__1,233,985 $ 2,162,715 $ 1,128,618 $ (289,717) $ (47.5,175) $ 3,760,425
See notes to basic financial statements.
-16-
1
CITY OF OPA-LOCKA,FLORIDA
RECONCILIATION OF THE CHANGE IN FUND BALANCES
OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30,2012
Amounts reported for governmental activities in the statement
of activities(Page 16)are different because:
Net change in fund balances-total governmental funds(page 16)
$ 1,574,909
Governmental funds report capital outlays as expenditures.
However,in the statement of activities,the cost of those assets
is depreciated over their estimated useful lives.
Expenditures for capital outlays 1,152,505
Less current depreciation r= ,6441 (565,178)
The effect of other transaction involving capital assets:
Capital lease proceeds (212,176)
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net assets. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items
when debt is first issued,whereas these amounts are deferred and amortized in
the statement activities. This amount is the net effect of these differences in
the treatment of long-term debt and related items.
Capital lease proceeds
Principal payments of bonds payable 358,000
Principal payments of capital leases 128,355
Some items reported in the statement of activities do not require the use of
current financial resources and,therefore, are not reported in the governmental
funds. These activities consist of:
Change in compensated absences (17,535)
Change in net assets of governmental activities(Page 13) $ 2,418,880
See notes to basic financial statements.
-17-
1
CITY OF OPA-LOCKA,FLORIDA
STATEMENT OF NET ASSETS I
PROPRIETARY FUNDS
SEPTEMBER 30,2012
Business-type Activities-Enterprise Funds
Other 1
Nonmajor
Water and Enterprise
Sewer Funds Total
ASSETS
Current assets:
Cash and equity in pooled cash 1.8,318,800 $ 656,414 $ 8,975,214
Receivables,net 2,316,003 145,300 2,461,304 '
Due from other funds 591,316 1,631,146 2,222,462
Due from other Gov 200,000 - 200,000
Inventories 4,654 - 4,654
Other assets 78,291 - 78,291 I
Total current assets 11,509,065 2,432,861 13,863,634
Noncurrent assets:
Restricted cash and cash equivalents 1,380,271 - 1,380,271
Capital assets,net 11,949,158 76,033 12,025,192
Total noncurrent assets 13,329,429 76,033 13,405,462
Total assets 24,838,493 2,508,894 27,269,097 1
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 471,843 90,425 562,268
Overdrawn cash 651,220 - 651,219
Deposits 2,437,990 485,080 2;923,072
Advances 1,852,093 118,416 1,970,509
Unearned (467,958) (467,959)
Compensated absences 85,660 11;644 97,304
Current portion of loans payable 146,429 - 146,429
Total current liabilities 5,177,278 705;566 5,882,843
Noncurrent liabilities:
Loans payable 2,582,640 - 2,582,640
Capital lease payable 1,186,057 - 1,186,057
Total noncurrent liabilities 3,768,697 - 3,768,697
Total liabilities 8,945,975 705;566 9,651,540
NET ASSETS
Invested in capital assets,net of related debt 15,717,856 76,033 15,793,890
Restricted for debt covenants 411,671 - 411,671
Unrestricted (237,009) 1,727,295 825,665
Total net assets $ 15;892,518 $ 1,803,328 $ 17,031,226
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See notes to basic financial statements.
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CITY OF OPA-LOCKA,FLORIDA
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2012
Business-Type-Enterprise Funds
Other
Nonmajor
Water and Enterprise
Sewer Funds Total
Operating revenues:
Charges for services + i 10,064,968 $ 1,520,502 $ 11,585,470
Other revenues 61,293 61,293
Total operating revenues 10,126,261 1,520,502 11,646,763
Operating expenses:
Operating,administrative and maintenance 5,477,917 1,469,618 6,947,535
Depreciation 476,880 38,442 515,322
Total operating expenses 5,954,797 1,508,060 7,462,857
Operating income(loss) 4,171,464 12,442 4,183,906
Non-operating revenues(expenses)
Interest 1,608 - 1,608
Interest and fiscal charges - - -
Total non-operating revenues(expenses) 1,608 - 1,608
Income before transfers 4,173,072 12,442 4,185,514
Transfer out (2,000,000) - (2,000,000)
Change in net assets 2,173,072 12,442 2,185,514
Net assets,beginning 13,727,633 155,128 13,882,761
Net assets,ending $ 15,900,705 $ 167,571 $ 16,068,276
See notes to basic fin cial statements.
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AFT
Notes to Basic Financial Statements
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Opa-Locka, Florida (the "City") in Miami-Dade County, Florida (the
"County") was incorporated in 1926 by the Laws of Florida Chapter 13187. The City
comprises approximately 4.5 square miles of land and operates under a Commission/City
Manager form of government and provides municipal services to its residents, including
general government, public safety,transportation, and parks and recreation. The City also
operates water, sewer, storm water, and sanitation enterprises.
The accounting policies of the City conform to accounting principles generally accepted
in the United States of America (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.
The more significant accounting policies of the City are described below.
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A. Reporting Entity 1 Alt
The financial statements were prepared in accordance with GASB Statement No. 14,
The Financial Reporting Entity, as amended by GASB Statement No. 39, which
establishes standards for defining and reporting on the financial reporting entity. The
financial reporting entity consists of the City, organizations for which the City is
financially accountable and other organizations for which the nature and significance
of their relationship with the City are such that exclusion would cause the reporting
entity's financial statements to be misleading or incomplete.
The City is financially accountable for a component unit if it appoints a voting
majority of the organization's governing board and it is able to impose its will on that
organization or there is potential for the organization to provide specific financial
benefits to, or impose specific financial burdens, on the City. Based on these criteria,
entities were evaluated for inclusion in the City's reporting entity with the following
results:
The City passed ordinances in prior years establishing various neighborhood
improvement districts. The following neighborhood improvement districts, which are
considered to be component units of the City, have not been included in the financial
statements because there has been no financial activity for several years and the funds
have no assets,liabilities, or fund balances.
1) East-West Neighborhood Improvement District
2) Ali-Baba Neighborhood Improvement District
3) Niles Garden Neighborhood Improvement District
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and statement of
activities) report information on all of the activities of the City. For the most part,the effect of
inter-fund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenues. Direct expenses,are those that are clearly identifiable
with a specific function. Amounts reported as program revenues include 1) charges to
customers or applicants who purchase, use of directly benefit from goods, services, or privileges
provided by a given function, and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function. Taxes and other items not included
among program revenues are reported as general revenues.
gp
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements. All remaining governmental funds are aggregated and
reported as nonmajor funds.
C. Measurement Focus,Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows.Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected
within sixty (60) days of the end of the current fiscal period, with the exception of expenditure
driven(reimbursements) grants,for which the availability period is one year.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due. General capital asset
acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term
debt and acquisitions under capital leases are reported as other financing sources.
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CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Property taxes, sales taxes, utility taxes, franchise taxes, licenses, and interest associated with the
current fiscal period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. All other revenue items are considered to be measurable and
available only when cash is received by the City
The City reports the following major governmental funds:
The General Fund is the general operation fund of the City. It accounts for all financial
resources of the general government, except those required to be accounting for in another
fund.
The Peoples Transportation Tax Fund accounts for.:'the City's prorated share of the
Charter County Transit System Surtax proceeds used toward projects and programs such as
public transportation operations.
The Capital Improvement Debt Service'Fund is used to account for the sinking fund
requirements of the Series 2011 A and B Capital Improvement Revenue Bonds.
The Safe Neighborhood Capital Projects Fund accounts for revenue and expenditures of
the CDBG and General Obligation Bonds funds from Miami-Dade County.
The City reports the following major proprietary funds:
The Water and Sewer Fund is used to account for,.the operation and maintenance of the
City's water and sewer system.
Private-sector standards'of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the,=government-wide and proprietary fund financial statements to
the extent that those standards doanot conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent
private sector guidance for their business-type'.activities and enterprise funds, subject to the
same limitation. The City has,elected not to follow subsequent private-sector guidance.
As a general rule the effect of inter-fund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are payments and other charges between the
City's water and sewer function and various other functions of the government. Elimination of
these charges would'°'distort the-,,direct costs and program revenues reported for the various
functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the City's water and sewer, solid waste and stormwater
enterprise funds, are charges to customers for sales and services. Operating expenses for
enterprise funds include the cost of sales and services, administrative expenses, and depreciation
on capital assets. All revenues and expenses not meeting this definition are reported as non-
operating revenues and expenses.
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
When both restricted and unrestricted resources are available for use, it is the City's policy to
use restricted resources first, then unrestricted resources as they are needed.
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect 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.
D. Assets,Liabilities, and Net Assets or Fund Equity
1. Encumbrances
Encumbrances accounting, under which purchase orders, contracts and other commitments for
the expenditure of monies are recorded in order to serve that portion of the applicable
appropriation, is employed in the General and Capital Projects Funds. Encumbrances
outstanding at the balance sheet date are canceled.
2. Deposits and Investments
The City considers cash on hand, cash with fiscal agents, demand deposits, and certificates of
deposit with and original maturity of(90)ninety days or less to be cash and cash equivalents.
For purposes of the statement of cash flows for proprietary fund types fund, all highly liquid
investments (including restricted assets) with maturity of three months or less when purchased
are considered to be cash equivalents,
Investments, consisting of U.S. Government securities, and certificates of deposit with financial
institutions, are stated at cost plus accrued interest.
3. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and
not yet received. The City calculates its allowance for uncollectible using historical collection
data, specific account analysis, and management's judgment. Major receivables balances for
the governmental activities include franchise fees and utility taxes, and amounts due from
other governments. Business-type activities report utility billings as major receivables.
4. Inventories
Inventories are valued at cost, which approximates market, using the first-in, and first-out
method. Inventories in the General and Enterprise Funds consist of fuel and expendable supplies
held for consumption. The costs of Governmental Fund type inventories are recorded
II
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
purchased. In the governmental funds, reported inventories are offset by a fund balance reserve
which indicates that they do not constitute available spendable resources.
5. Restricted Assets
Restricted assets include cash and cash equivalents of the governmental and enterprise funds
that are legally restricted as to their use. Cash and cash equivalents are restricted for debt
service, customers' deposits,revenue bond requirement, and sewer system improvements,
6. Capital Assets
Capital assets, including land, buildings, improvements, infrastructure, and equipment assets,
are reported in the applicable governmental or business type activities columns in the
government-wide financial statements. Capital assets are defined by the City as assets with an
initial, individual cost of more than $500 and an initial useful life of one year or greater. Such
assets are recorded at historical cost if purchased or constructed. Donated capital assets are
recorded at estimated fair value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extended the life of the asset are not capitalized..
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed.
Buildings, improvements, infrastructure and equipment assets are depreciated using the straight-
line method over the following estimated useful:lives:
Assets Years
Buildings and Building Improvements 10-50
Infrastructure Systems 30
Equipment 3-10
Vehicles >: 3-10
7. Inter-fund Transactions
Activities between funds that are representative of lending/borrowing arrangements at the end
of the fiscal year are referred to as "due to/from other funds" or "advances to/from other
funds". Any residual balances outstanding between the governmental activities and business-
type activities are reported in the government-wide financial statements as "internal balances".
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Non-current portions of long-term inter-fund loan receivables are reported as advances within
the governmental funds, and are offset equally by a fund balance reserve account which
indicates that they do not constitute expendable available financial resources, and therefore, are
not available for appropriation.
Transactions among City funds that would be treated as revenues and expenditures or expenses
if they involve organizations external to City government are accounted for as revenues and
expenditures or expenses in the funds involved.
Transactions that constitute reimbursements to a fund for expenditures initially made from it,
which are properly applicable to another fund, are recorded as expenditures in the reimbursing
fund and as reductions of expenditures in the reimbursed fund. Transactions, which constitute
the transfer of resources from a fund receiving revenues to a fund through which the revenues
are to be expended, are separately reported in the respective funds' operating statements.
8. Deferred and Unearned Revenues
Deferred revenues in the governmental funds represent amounts due, which are measurable, but
not available. In the statement of net assets, deferred revenues represent grants and similar items
received; however,the City has not met all eligibility requirements imposed by the provider.
9.Compensated Absences
It is the City's policy to permit employees to accumulate, with certain limits, earned but unused
vacation time and sick leave hours for subsequent use or for payment upon termination, death
or retirement. For government-wide statements and proprietary fund types, these accumulations
are recorded as expenses and liabilities of the appropriate fund in the fiscal year earned. For
governmental fund types, the amount accumulated unpaid vacation and sick leave that is
payable from available resources;is recorded as a liability of the respective fund only if they
have matured, for example, as a result of employee retirements and resignations.
10. Fund Equity
Reservations =;of fund balance represent :`amounts that are not appropriated or are legally
segregated for a specific purpose. Restrictions of net assets are limited to outside third-party
restrictions.
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
11. Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital
assets,net of related debt, consists of capital assets, net of accumulated depreciation, reduced by
the outstanding balances of any borrowings used for the acquisition, construction or
improvement of those assets. Net assets invested in capital assets, net of related debt excludes
unspent debt proceeds.
Net assets are reported as restricted when there are limitations imposed on their use either
through the enabling legislation adopted by the City or through external restrictions imposed by
creditors, grantors or laws or regulations of other governments
The City first applied restricted resources when an expense'is incurred for purposes for which
both restricted and unrestricted net assets are available.
12. Deferred Compensation Plan
The City offers its employees a deferred compensation plan(the "Plan") created in accordance
with Internal Revenue Code Section 457. The Plan, available to all City employees, allows them
to defer a portion of their salary to future years. The City's direct involvement in the Plan is
limited to remitting the amounts withheld from employees to the Plan's administrator. The
deferred compensation plan is not included in the City's financial statements.
13. Nature and Purpose of Classifications of Fund Equity
In the fund financial statements, governmental funds report fund classifications that comprise a
hierarchy based primarily on the extent to which the City is bound to honor constraints on the
specific purposes for which amounts in those funds can be spent. Amounts that are restricted to
specific purposes either by a) constraints placed on the use of resources by creditors, grantors,
contributors, or laws or regulations of other governments or b) imposed by law through
constitutional provisions or enabling legislation,are classified as restricted fund balances.
Amounts that can only be used for specific purposes pursuant to constraints imposed by the City
Council through an ordinance or resolution are classified as committed fund balances. Amounts
that are constrained by the City's,intent to be used for specific purposes but are neither restricted
nor committed are classified, as assigned fund balances. Assignments are made by City
management based.on Council direction. Non-spendable fund balances include amounts that
cannot be spent because they are either (a) not in spendable form or (b) legally or contractually
required to be maintained-intact. Unassigned fund balance represents fund balance that has not
been assigned to other funds'and that has not been restricted, committed, or assigned to specific
purposes within the general fund.
NOTE 2. DEFICIT FUND EQUITY
The City reported fund balance deficit of ($522,835), ($289,718), ($345,567), ($311,016,
($144,471) and ($69,910), for its Solid Waste, Safe Neighborhood Capital Project, Opa-locka
Police Youth Academy, Crime Prevention, STOP/VAWA and CRA. The City will correct these
fund balance deficits by way of appropriating funds from the general fund in its fiscal year
2012-2013 budget.
1
CITY OF OPA-LOC ,FLORIDA
Notes to Basic KA
Financial Statements
Fiscal Year Ended September 30,2012
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CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
NOTE 3. PROPERTY TAXES
Property taxes are levied on November 1St of each year, at which time taxes become an
enforceable lien on property assessed as of the previous January 1St. Tax bills are payable
upon receipt with discounts rates of one to four percent allowed if paid prior to March 1
of the following calendar year. Taxes become delinquent on April 1 of the year following
the year of assessment and State law provides for enforcement of collection of property
taxes by the sale of interest-bearing tax certificates and the seizure of personal property to
satisfy unpaid property taxes. Miami-Dade County bills and collects all property taxes for
the City, and sells tax certificates for delinquent taxes.
The gross taxable value of property, as established by the Miami-Dade County Property
Appraiser, at July 1, 2011 upon which the 2011-2012 levy, was approximately $7,4
million. For the year ended September 30, 2012, the millage rate to finance general
government services was 9.1052 ($9.1052 per $1,000 of assessed taxable value). The
City is permitted by the State to levy a maximum of 10.00 mills ($10 per $1,000 of
assessed taxable value) for general government services.
No accrual for the property tax levy becoming due in November 2012 is included in the
accompanying financial statements since the legal right to receive these taxes occurs on
November 1, 2012, and such taxes are collected to finance expenditures of the fiscal year
ending September.30, 2013.
NOTE 4. DEPOSITS AND INVESTMENTS
As of September 30, 2012 the City's cash are considered to be cash on hand and demand
deposits.
Deposits
All deposits with financial<.institutions are fully insured or collateralized as required
by;the City Commission. The deposits are covered by federal depository insurance
and,'for the amount in excess of such federal depository insurance, by the State of
Florida's Public Deposits Act ("the Act"). Provisions of the Act require that public
deposits may only be made at qualified public depositories. The Act requires each
qualified public depository to deposit with the State Treasurer eligible collateral equal
to or in excess of the required collateral as determined by the provisions of the Act. In
the event of a failure by a qualified public depository, losses, in excess of federal
depository insurance and proceeds from the sale of the securities pledged by the
defaulting depository, are assessed against the other qualified public depositories of
the same type as the depository in default.
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
InvOestments
The City is authorized to make direct investments in U.S. government, federal
agency, and instrumentality obligations at a price not to exceed the market price at the
time of purchase. In addition, the City may invest in certificates of financial
institutions insured by the United States government or agencies thereof and
repurchase agreements.
As of September 30, 2012 the City has no investments.
NOTE 5. RECEIVABLES
Receivable balances as of September 30,2012, were as follows:
Due from
Other Allowance
Accounts Taxes Agencies Others for Net
Governmental activities:
General $ - $509,152 $ 276,087 $ 471,370 $(422,493) $ 834,116
Peoples transportation tax - - 71,557 - - 71,557
Safe neighborhood - - 723,290 - - 723,290
Nonmajor funds - - 50,849.. - - 50,849
Total governmental activities : $ - $ 509,152 '$1,121,783 $ 471,370 $(422,493) $ 1,679,812
Business-type activities:
Water and sewer $2,375,463 $ ' - $ - $ - $(477,858) $ 1,897,605
Stormwater 113,055 - - - (21,555) 91,500
Solidwaste 58;333 - - - 58,333
Total business-type activities $ 2,546,851 $ - $ - $ - $(499,413) $ 2,047,438
CITY OF OPA-LOCKA, FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
NOTE 6. INTERFUND BALANCES AND TRANSFERS
Transfers are used to (1) move revenues from the fund that statute or budget requires
collecting them to the fund that statute or budget requires to expend them or (2) use
unrestricted revenues collected in the General Fund to finance various programs
accounted for in other funds in accordance with budgetary authorizations. These transfers
are eliminated in the consolidation, by column, for the Governmental Activities. Inter-
fund balances result from the time lag between the dates that (1) inter-fund goods and
services are provided or reimbursable expenditures occur, (2) transactions are recorded in
the accounting system and(3)payments between funds are made.
Interfund balances as of September 30, 2012 consisted of the following:
Due from/to Other Funds Due From Due to
Other Funds Other Funds
Major governmental fund:
General fund $ 3,122,566 $ 5,143,239
Capital improvement debt service 761,737 986,028
Safe Neighborhood capital projects 1,219,540 92,258
Non-major governmental funds 1,225,500 163,896
Major enterprise fund:
Water and sewer 1,756,324 1,573,176
Non-major enterprise funds 179,705 306,777
Total $ ' 8,265,373 $ 8,265,373
Interfund transfers for the year ended September 30, 2012, consisted of the following:
Transfer in Transfer out Amount Purpose
Safe Water& Sewer $ 2,000,000 Transfer excess funds
Neighborhoo
Total,. $ 2,000,000
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
NOTE 7. CAPITAL ASSETS
The following is a summary of changes in capital assets for the year ended September 30, 2012:
Balance Balance
09/30/11 Increases Decreases 09/30/12
Governmental Activities:
Capital assets not being depreciated:
Land $3,042,475 $ $ - $3,042,475
Construction in progress 5,647,455 438,132 (5,647,455) 438,132
Total assets not being depreciated 8,689,930 438,132 (5,647,455) 3,480,607
Capital assets being depreciated:
Buildings and improvements 3,449,816 5,225,233 - 8,675,049
Furniture and equipment 4,523,832 7,213 - 4,531,045
Infrastructure 18,929;119 1,437,021 - 20,366,140
Total assets being depreciated 26,902,767 6,669,467 - 33,572,234
Less accumulated depreciation:
Buildings and improvements (2,662,446) (39,511) - (2,701,957)
Furniture and equipment (2,936,042) (223,777) - (3,159,819)
Infrastructure (13,781,663)• (301,890), - (14,083,553)
Total accumulated depreciation (19,380,151) (565,178).. < - (19,945,329)
Total capital assets being depreciated,_net 7,522,616 ;:; 6,104,289 % ` - 13,626,905
Governmental activities capital assets,net $ 16,212,546 $6,542,421 $ - $ 17,107,512
Rusiness-tvne Activities
Capital assets.not being depreciated;
Land $ 14,762 ; $ - $ - $ 14,762
Construction in progress 1,058,327 - (970,015 88,312
Total assets not being depreciated 1,073,089 (970,015) 103,074
Capital assets being depreciated:
Buildings and improvements - - - -
Furniture and equipment 19,071,513 - - 19,071,513
Infrastructure 2,862,045 1,863,053 - 4,725,098
Total assets being depreciated 21,933,558 1,863,053 - 23,796,611
Less accumulated depreciation:
Buildings and improvements - - - -
Furniture and equipment (8,200,719) (38,442) - (8,239,161)
Infrastructure (3,158,458) (476,880) - (3,635,338)
Total accumulated depreciation (11,359,177) (515,321) - (11,874,498)
Total capital assets being depreciated,net 10,574,381 1,347,732 - 11,922,113
Business-type activities capital assets,net $ 11,647 470 $1,347,732
$ 970,015 $ 12,025,149
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Depreciation expense was charged to functions/programs of the city as
follows: Governmental activities:
General government $ 85,953
Public safety 142,585
Transportation 310,509
Human Services 1,166
Parks and recreation 24,965
Total $ 565,178
Business-tvne activities:
Water and sewer $
476,880
Stormwater
38,442
Total $ 515,322
NOTE 8. LEASES
Operating Leases
The City leases building and office facilities under non-cancelable operating leases. Total
costs for such leases were,$498,686 for the year ended September 30, 2011. The future
minimum lease,.payments for the leases are as follows:
Year Ending September 30 Amount
2012 $ 424,414
2013 152,080
Total $ 576,494
- 32 -
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Capital Leases
The City has entered into lease agreements as lessee for financing the acquisition of various
vehicles. The City also financed the acquisition of water meter reading equipment. These lease
agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at
the present value of their future minimum lease payments as of the inception dates. Future
minimum payments under the lease agreements and the present value of minimum payments as of
September 30, 2012 are as follows:
Governmental Business-type
Year Ending September 30, Activities Activities
2013 112,106 : 422,978
2014 82,472 422,978
2015 55,584 422,978
2016 - 422,978
Total minimum lease payments 250,162 1,691,912
Less: amount representing interest (12,408) (142,545)
Present value of minimum lease payments $237,754 $ 1,549,367
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CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
NOTE 9. LONG-TERM DEBT
Long-term liability activity for the year ended September 30, 2012 was as follows:
Balance Balance Due within
09/30/11 Additions Reductions 09/30/12 One year
Governmental activities:
Capital Improvement Revenue
Bond,Series 2011 7,713,000 (358,000) 7,355,000 390,000
Total loans payable 7,713,000 - , (358,000) 7,355,000 390,000
Other liabilities:
Capital leases obligation 307,688 - (121,230) 186,459 127,182
Compensated absences 1,069,606 149,004 (166,539) 1,052,071 268,098
Total governmental activities long-
term
liabilities $ 9,090,294 $149,004 $(645,769) $ 8,593,330 $ 785,280
Bncinecc-tvne activitiec:
State Revolving Loan No.
CS120800020 $ 61,504=$, - $ (30,391) $ 31,113 $ 31,113
State Revolving Loan No.
CS12080003P 1,027,403 - (75,916) 951,487 78,233
State Revolving Loan No.
WW800050 1,927,556 - (113,488) 1,814,068 115,231
Total loans payable 3,016,463 - (219,795) 2,796,668 224,577
Other liabilities:
Capital leases obligation 1,897,743 - (348,376) 1,549,367 348,376
Liability to Florida Department of
Transportation 137,140' - (63,295) 73,845 63,295
Compensated absences 114,400 47,953 (4,280) 158,073 51,253
Total business-type activities long-
term liabilities, $ 5,165,746 $47,953 $ (415,951) $ 4,577,953 $ 687,501
For governmental activities,compensated absences are generally liquidated by the General Fund
Long-Term Debt Governmental Activities
Long-term debt of the City's governmental activities, excluding compensated absences
and capital leases, include the Series 2011A&B Capital Improvement Revenue bonds,
bearing annual interest rates on the Series A and Series B bonds range from
approximately 3.31% to 3.89%, and are payable from a pledge of Grantee Entitlement
Revenues which must be shared by the State of Florida, in annual principal installments
ranging from$390,000 in 2013 to $670,000 through 2026.
Long-Term Debt-Business-Type Activities
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Long-term debt of the City's business-type activities, excluding compensated absences and
capital leases, consists of the following:
a) State Revolving Loan Note Project No. CS120800020 - for $480,816, bearing interest at rates
ranging from 2.89%to 3.75% due in 20 annual payments of$32,365, including interest, from
July 31, 1994 through July 31, 2013, secured by a lien on Pledge Revenues as defined by the
State Revolving Fund loan agreement.
b) State Revolving Loan Note Project No. CS12080003P as amended - for $1.827 million,
bearing interest at a rate of 2.56% and 1.54%, due in 40 semi-annual payments of$53,240,
including interest, from June 15, 2003 through December 15, 2022, secured by a lien on
Pledge Revenues as defined by the State Revolving Fund loan agreement.
c) State Revolving Loan Note Project No. WW800050 for $2.375 million, bearing interest at a
rate of 1.53%, due in 40 semi-annual payments.of $71,143, including interest, secured by a
lien on Pledge Revenues as defined by the State Revolving Fund loan agreement.
d) Settlement with the Florida Department of Transportation (FDOT) for$632,954, bearing an
implied interest rate of 4.11%, due in 119 monthly payments of $5,319, including interest,
from January 2001 through December 2013. In accordance with an agreement between FDOT
and the City, payments were temporarily suspended on August 1, 2002 and commenced again
on October 1, 2005.
Annual debt service requirements to maturity for debt outstanding, other than the capital leases,
are as follows:
Fiscal Year Governmental Activities . .: Business-type Activities
ending Principal Interest Principal Interest
2013 390,000 -. 249,968 287,872 56,300
2014 403,000 236,624 208,193 51,143
2015 " 416,000 222,852 201,880 46,886
2016 430,000 208,619 206,240 42,524
2017 445,000 ; 193,890 209,778 38,988
2018-2022 2,729,000. ; 705,041 660,950 85,346
2022-2026 2,542,000 '> 196,288 925,685 51,944
Thereafter - 152,841 1,898
$ 7,355,000 $ 2,013,282 $ 2,853,439 $ 375,029
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Summary of Debt Covenants
Series 2011A and Series 2011B Capital Improvement Revenue Bonds — Debt service is
provided by a pledge of guaranteed state revenue sharing funds, local option gas tax
revenues, and the half-cent sales tax. Reserves must be maintained equal to the maximum
bond service requirement. At September 30, 2012 the City had on deposit with the trustee
for these bonds, a reserve account insurance policy which unconditionally and
irrevocably guarantees the full and complete payment required to be made by or on the
behalf of the City.
Pledge Revenues - the City's agreement under the State of Florida Revolving Loan Fund
Program requires the City to generate Pledged'Revenues, as defined by the agreement,
from the services furnished by its water and sewer systems equal to or exceeding 1.15
times the sum of the semiannual loan payments. As of September 30, 2012 the City is in
compliance with this requirement.
The amount of long-term debt that can be incurred by the City is limited by the charter of
the City. Total general obligation bond of the City outstanding in any one fiscal year can
be no greater than 15% of the assessed value of taxable property as of the beginning of
the fiscal year. As of September '30, 2012 the amount of bonds outstanding and notes
payable exclusively from the -"reverues of a municipal project was less than 5% of
property assessments as of September 30,2012.
Bonds payable exclusively from the revenue of a.municipal project may be issued and
outstanding without regard to the 15% limitation; however, such an issue would be
subject to the limitations`imposed by the City's charter with respect to restrictions on
bonds'parity with Cr-junior to the Series 2011A and Series 2011B Capital Improvement
Revenue Bonds.
NOTE 10 DEFINED BENEFIT PENSION PLAN
Florida Retirement Systems Plans The City participates in the State of Florida Retirement
System (the "System"), a cost sharing multiple-employer defined benefit plan or defined
contribution retirement plan which covers substantially all of the City's full-time employees.
The FRS was established in 1970, by consolidating several employee retirement systems. All
eligible employees as defined by the State who were hired after 1970 and those employed prior
to 1970 that elect to be enrolled, are covered by the System.
Benefit provisions and all other requirements are established by Chapter 121, Florida Statutes
and any amendments thereto can be made only by an act of the Florida Legislature. Employees
of the FRS may participate in either the Public Employee Optional Retirement Program (the
"Investment Plan"), a defined contribution retirement program or in the defined benefit
retirement plan (the "Pension Plan"). Eligible members of the Investment Plan are vested after
one year of service and are directed to choose their investment product with a third party
administrator selected by the State Board of Administration.
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Employees participating in the Pension Plan have their benefits computed on the basis of age,
average final compensation and service credit. Benefits under the Pension Plan vest after six
years of service. Employees who retire at or after age 62, with ten years of credited service, are
entitled to an annual retirement benefit, payable monthly for life. A post-retirement health
insurance subsidy is also provided to eligible retired employees through the FRS defined
benefits retirement plan.
1
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Summary of Florida Retirement System Contributions,
Covered Payroll and Percentage of Covered Payroll
2012 2011 2010
Covered payroll $8,628,421 $8,329,221 $7,881,811
Contributions 1,064,057 1,074,327 1,084,207
%of Covered Payroll 13.00% 13.00% 13.75%
The City is required to contribute amounts necessary to pay benefits when due as defined by
State Statute. Such contribution requirements ranged.between 12% and 22% of gross salaries
during fiscal year 2012. For the fiscal years ended September 30, 20112 2011, and 2010 the
City contributed 100% of the required contributions. A copy of the System's annual report can
be obtained by writing to the Division of Retirement, Cedars Executive Center, 2639-C North
Monroe Street, Tallahassee, Florida 32399-1560 or by calling(850)488-5706.
NOTE 11. RELATIONSHIP WITH THE COUNTY
In 1955, the Florida Legislature approved and submitted to a general election a constitutional
amendment designed to give a new form of government to the County of Miami-Dade. The
County is, in effect, a municipality with governmental powers effective upon more than 29
cities, including the City, and the unincorporated areas. It has not displaced or replaced the
cities, but supplements them. The County can take over-particular activities of the City's
operations if(1) the' fall below minimum standards set by the County Commission,
or (2) with the consent of the governing body of the City.
Since its inception,'the County has assumed responsibility for a number of functions, including
countywide police services, complementing county-wide fire protection; consolidated two-tier
court system;;creation of the vario us surface transportation programs; installation of a central
traffic -control computer system; merging all public transportation systems into a county
system; and centrali'zation of the property appraiser and tax collector functions.
NOTE 12. COMMITMENTS AND •
CONTINGENCIES Commitments
Water Supply and Sewer Services Contract
In February 1985, the City entered into an agreement with Miami-Dade Water and Sewer
Authority (the "Authority") for the purpose of providing to the City all of its potable water
supply and sewer services for a period of thirty(30)years subject to termination at any time by
operation of law or by mutual consent of the City and the Authority. For the year ended
September 30, 2012 and 2011, the City purchased water and sewer services totaling
$2,814,054 and $2,922,034 respectively, from the Authority under the terms of this agreement.
Solid Waste Collection and Disposal Contract
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
on September 28, 2013. The contract maybe renewed for additional one (1) year period unless
either the contractor or the City notify the other of its desire not to extend at least sixty (60)
days prior to the termination date of the original contract term or any renewal term.
Contingencies
The City participates in a number of Federal and State grant programs. These programs are
subject to financial and compliance audits by the grantors or their representatives. The possible
disallowance of any item charged to the program or request for the return of already collected
funds may be disallowed by the grantor agency. Any potential disallowed amounts cannot be
determined at this time. No provision for any liability that may result has been made in the
financial statements. The City expects such amounts,if any,to be immaterial.
Various other claims and lawsuits, which arose in the normal course of operations, are pending
against the City. In the opinion of management, based on the advice of the City's Attorney, the
outcome of these actions is not anticipated to have a material effect on the financial position
and results of operations of the City.
NOTE 13. DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan.(the "Plan"), which is administered
by two administrators. The portion of the plan administered by the International City
Management Association Retirement Corporation ("ICMA") was created in accordance with
Internal Revenue Code Section 457 (a qualified plan). The other portion constitutes a
nonqualified plan benefit and,is administered by the Equitable Life Assurance Society
("Equitable"). The Plan, available to all City employees, permits them to defer a portion of
their salary until future years.Participation in this plan is optional. The deferred compensation
is not available to employees until termination,retirement, death or unforeseeable emergency.
All assets and income of the Plan are held in trust for the exclusive benefits of the participants.
The City makes no investment decisions and has no fiduciary responsibilities regarding the
Plan; therefore, the assets,and liabilities of the Plan are not included in the City's financial
statements as September 30,2012.
NOTE 14. RISK MANAGEMENT
The government is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters for
which the City carries commercial insurance. The City has not had a significant reduction in
insurance coverage from coverage in the prior year by major categories of risk, and settled
claims have not exceeded the City's retention and excess coverage in force for each of the past
three years.
it
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
NOTE 14. REQUIRED SUPPLEMENTARY INFORMATION
Under GASB Statement No. 34, budgetary comparison information is required to be
presented for the general fund and each major special revenue fund with a legally adopted
budget. The City adopts annual operating budgets for the general fund and all special
revenue funds. Budget and actual comparison for the General Fund is presented in the
Required Supplementary Information section of the report. Budget and actual comparisons
for other funds are reflected in the Combining Statements section.
NOTE 15. SUBSEQUENT EVENTS
On April 3, 2013, Opa-locka officer, Sergio Perez, initiated pursuit of a vehicle that made an
illegal right turn. That vehicle, driven by Willie Dumel,failed to stop and attempted to flee from
Officer Perez. While doing so,he was observed discarding a gun. Dumel entered I-95
northbound, exited westbound on Ives Diary Road and then re-entered 1-95 by entering a
southbound ramp going against traffic. While traveling on the highway in the wrong direction, he
struck a vehicle head-on, resulting in four(4) fatalities.
Based upon the circumstances surrounding this accident,it is likely that the City of Opa-locka will
be found liable for the subject accident and damages to four Estates. While an amount of damages
is difficult to predict at the present time,it is anticipated that judgments well in excess of
$2,000,000 per Estate will be entered against the City of Opa-locaka.
NOTE 16. MANAGEMENT'S REVIEW
In preparing these financial statements,the Organization has evaluated events and transactions for
potential recognition or disclosure through December 20, 2013,the date the financial statements
were available to be issued. There were no other significant events that management believed
require disclosure.
- 39 -
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Note 17-Pronouncements Issued,Not Yet Effective, and Recently Adopted
The Governmental Accounting Standards Board(GASB)has issued several pronouncements that
have effective dates in the future that may impact future financial presentations. Management
has not currently determined what, if any, effect implementation of the following statements may
have on the financial statements of the City.
GASB Statement 61, The Financial Reporting Entity: Omnibus, was issued in December 2010.
The Statement is designed to improve financial reporting for governmental entities by amending
the requirements of Statements No. 14, The Financial Reporting Entity, and No. 34, Basic
Financial Statements—and Management's Discussion and Analysis for State and Local
Governments, to better meet user needs and address reportirg'entity issues that have come to
light since those Statements were issued in 1991 and 1999, respectively. The provisions of this
Statement will be effective for the City beginning with'its year ending September 30, 2013.
GASB Statement 62, Codification of Accounting'and Financial Reporting Guidance Contained
in Pre-November 30, 1989 FASB and AICPA Pronouncements, was issued December 2010. The
Statement is intended to enhance the usefulness,of GASB Codification by incorporating certain
accounting guidance issued by the FASB and the AICPA that is applicable`to state and local
governments. The provisions of this Statement will be'effective for the City beginning with its
year ending September 30,2013.
ASB Statement 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, was issued June ,.2011. This>Statement provides financial reporting guidance for
deferred outflows of;resources and deferred inflows of resources. Concepts Statement No. 4,
Elements of Financial Statements, introduced and defined those elements as a consumption of
net assets by the government that is applicable to a future reporting period, and an acquisition of
net assets by the government that is applicable to a future reporting period, respectively.
Previous financial reporting standards 'do not include guidance for reporting those financial
statement elements,`:which are distinct from assets and liabilities. The provisions of this
Statement be effective,for the City beginning with its year ending September 30, 2013.
GASB Statement 64, Derivative Instruments: Application of Hedge Accounting Termination
Provisions-an amendment of GASB Statement No. 53 issued June 2011. The objective of this
Statement is to clarify,whether an;effective hedging relationship continues after the replacement
of a swap counterparty or a swap counterparty's credit support provider. This Statement sets
forth criteria that establish` when the effective hedging relationship continues and hedge
accounting should continue.,to``be applied. The provisions of this Statement will be effective for
the City beginning with its year ending September 30, 2012.
I��
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30,2012
Note 17-Pronouncements Issued,Not Yet Effective, and Recently Adopted (cont'd)
GASB Statement 65, Items Previously Reported as Assets and Liabilities was issued March 2012.
This Statement establishes accounting and financial reporting standards that reclassify, as deferred
outflows of resources or deferred inflows of resources, certain items that were previously reported
as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain
items that were previously reported as assets and liabilities. The provisions of this Statement will be
effective for the City beginning with its year ending September 30, 2013.
GASB Statement 67, Financial Reporting for Pension Plans - an amendment of GASB Statement
No. 25 was issued June 2012. The objective of this Statement is to improve financial reporting by
state and local governmental pension plans. This Statement results from a comprehensive review of
the effectiveness of existing standards of accounting and financial reporting for pensions with
regard to providing decision-useful information, supporting assessments of accountability and
interperiod equity, and creating additional transparency. This Statement replaces the requirements
of Statements No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures
for Defined Contribution Plans, and No. 50, Pension Disclosures, as they relate to pension plans
that are administered through trusts or equivalent arrangements (hereafter jointly referred to as
trusts) that meet certain criteria. The requirements of Statements 25 and 50 remain applicable to
pension plans that are not administered through trusts covered by the scope of this Statement and to
defined contribution plans that provide postemployment benefits other than pensions. The
provisions of this Statement will be effective for the City beginning with its year ending September
30, 2014.
GASB Statement 68, Accounting and Financial Reporting for Pensions an amendment of GASB
Statement No. 27 was issued June 2012. The primary objective of this Statement is to improve
accounting and financial reporting by state and local governments for pensions. It also improves
information provided by state and local governmental employers about financial support for
pensions that is provided by other entities. This Statement results from a comprehensive review of
the effectiveness of existing;standards'. of accounting and financial reporting for pensions with
regard to providing decision-useful information, supporting assessments of accountability and
interperiod equity, and creating additional transparency. This Statement replaces the requirements
of Statement No. 27, Accounting for Pensions by State and Local Governmental Employers, as
well as the requirements of Statement No. 50, Pension Disclosures, as they relate to pensions that
are provided through pension plans administered as trusts or equivalent arrangements (hereafter
jointly referred to as trusts) that meet certain criteria. The provisions of this Statement will be
effective for City beginning with its year ending September 30, 2015.
' r
CITY OF OPA-LOCKA,FLORIDA
Notes to Basic Financial Statements
Fiscal Year Ended September 30, 2012
On March 1, 2010, the City entered into a Residential Solid Waste Collection and Disposal
Agreement (the Agreement) with a third party contractor. The Agreement is for a period of
three years terminating
CITY OF OPA-LOCKA,FLORIDA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30,2012
Variance with
Final Budget
Budgeted Amounts Positive
Revenues: Original Final Actual (Negative)
Taxes:
Property taxes $ 6,214,101 $ 6,214,101 $ 6,736,248 $ 522,147
Utility taxes 866,400 910,900 863,608 (47,292)
Communications service taxes 625,000 866,400 559,299 (307,101)
Local option gas tax 270,000 270,000 275,054 5,054
Local business taxes 200,000 200,000 206,873 6,873
Franchise fees 1,365,200 1,365,200 1,452,012 86,812
Permits and fees 263,950 263,950 624,671 360,721
Intergovernmental 463,909 586,909 456,765 (130,144)
Charges for services 28,100 28,100 32,788 4,688
Fines and forfeitures 588,500 303,500 843,115 539,615
Interest 8,000 8,000 1,888 (6,112)
Other 126,210 166,210 437,914 271,704
Total revenues 11,019,370 11,183,270 12,490,235 1,306,965
Expenditures:
Current:
General government:
City commission 105,205 114,565 109,246 5,319 1
City manager 633,609 529,806 541,311 (11,505) R'. I
City clerk 502,839 667,455 598,188 69,267
City attorney 533,500 533,500 699,477 (165,977)
Finance/Utility billing 545,034 515,825 477,860 37,965
I) r
Information technology 284,380 276,445 284,150 (7,705)
Human resources 240,866 274,370 286,276 (11,906)
371,847 366,115 585,711 (219,596)
Community development 228,582 429,950 391,008 38,942
Total general government 3,445,862 3,708,031 3,973,227 (265,196)
Public safety:
Police 4,947,181 4,926,947 5,511,256 (584,309)
Code enforcement 482,800 559,180 432,916 126,264
Total public safety 5,429,981 5,486,127 5,944,172 (458,045)
Public works:
Administration 222,727 130,230 208,695 (78,465)
Street maintenance 368,311 379,901 448,126 (68,225)
Building maintenance 277,685 277,125 305,744 (28,619)
Vehicle maintenance 598,097 636,720 667,425 (30,705)
Total public works 1,466,820 1,423,976 1,629,990 (206,014)
(Continued)
CITY OF OPA-LOCKA,FLORIDA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30,2012
(Continued)
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Parks and recreation:
Parks 737,692 710,017 780,218 (70,201)
Special events 25,000 33,075 48,449 (15,374)
Total parks and recreation 762,692 743,092 828,667 (85,575)
Non-departmental 1,148,543 1,138,243 1,341,685 (203,442)
Total non-departmental 1,148,543 1,138,243 1,341,685 (203,442)
Total expenditures 12,253,898 12,499,469 13,717,741 (1,218,272)
Excess of revenues over expenditures (1,234,528) (1,316,199) (1,227,506) 88,693
Other financing sources(uses):
Capital lease proceeds - - 212,176 212,176
Transfers in 1,899,100 2.207,165 - (2,207,165)
Transfers out (99,575) (105,070) - 105,070
Net change in fund balance 564,997 785,896 (1,015,330) (1,801,226)
Fund balance,beginning 2,249,012 2,249,012 2,249,012 -
Fund balance,end $ 2,814,009 $ 3,034,908 $ 1,233,682 $ (1,801,226)
See notes to budgetary c mparison schedule.
�3 ,,
•
CITY OF OPA-LOCKA,FLORIDA
NOTES TO BUDGETARY COMPARISON SCHEDULE
NOTE 1. BUDGETS AND BUDGETARY ACCOUNTING
Chapter 166, Florida Statutes, requires that all municipalities prepare, approve, adopt and execute an annual
budget for funds as may be required by law or by sound financial practices and generally accepted accounting
principles. The budgets control the levy and the expenditure of money for City purposes in the ensuing fiscal
year. The budgeting process is based on estimates of revenues and expenditures. The City budgets are
prepared on a modified-accrual basis or accrual basis of accounting in accordance with generally accepted
accounting principles.
The City follows these procedures in establishing the budgetary data reflected in the financial statements.
1. Prior to August 1,the City Manager submits to the City Commission a proposed operating budget for
the fiscal year commencing the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments. �
3. Prior to October 1,the budget is legally enacted through passage of an ordinance.
4. Budgetary control is maintained at the departmental and fund level, with finance department
providing support to departments in the administration of their budgets. In accordance with the City's
budget transfer policy, the City Manager is authorized to transfer budgeted amounts within any fund
or functions; however, any supplemental appropriations or revisions that amend the total expenditure
of any fund must be approved by the City Commission. The City also maintains an encumbrance
accounting system as one technique of accomplishing budgetary control. Encumbrances outstanding
at the balance sheet date are canceled.
5. Annual operating budgets are legally adopted for the General, Special Revenue,Debt Service, Capital
Projects, and Enterprise Funds. All budgets are on a basis consistent with accounting principles
generally accepted in the United States of America. The legal level of budgetary control is the
department level.This is the level at which expenditures may not exceed appropriations.
6. All annual appropriations lapse at fiscal year end.
4/3
CITY OF OPA-LOCKA,FLORIDA
NOTES TO BUDGETARY COMPARISON SCHEDULE
NOTE 2.BUDGETARY EXPENDITURES IN EXCESS OF APPROPRIATIONS
For the year ended September 30, 2012 expenditures exceeded appropriations in the city
attorney, building and licenses, public works, public safety, public works and parks
departments of the general fund by $165,977, $219,596, $458,045, $206,014 and
$85,575. The over expenditures were funded by available fund balance in the case of the
general fund.
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II
CITY OF OPA-LOCKA,FLORIDA
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF NET ASSETS
SEPTEMBER 30, 2012
Stormwater Solid Waste Total
ASSETS
Current assets:
Cash and equity in pooled cash $ 656,414 $ - $ 656,414
Receivables,net 91,500 53,800 145,300
Estimated unbilled services 14,026 - 14,026
Due from other funds 349,968 1,281,179 1,631,146
Total current assets 1,111,908 1,334,978 2,446,887
Noncurrent assets:
Capital assets,net 76,033 0 76,033
Total noncurrent assets 76,033 0 76,033
'Total assets 1,187,941 1,334,978 2,522,920
LIABILITIES , ,r4 X44^
Current liabilities: 1
Accounts payable and accrued liabilities ' 810 89,615 90,425
Overdrawn cash 1,649,784
Due to other funds 485,081 - 485,080
Due to other governments - -
Customers'deposits 1 118,415 118,416
Compensated absences 11,644 - 11,644
Total current liabilities 497,536 1,857,813 705,566
Total liabilities 497,536 1,857,813 705,566
NET ASSETS
Invested in capital assets,net of related debt 76,033 0 76,033
Unrestricted 614,373 (522,835) 91,538
Total net assets $ 690,406 $ (522,835) $ 167,571
-5 -
CITY OF OPA-LOCKA,FLORIDA
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES,
AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30,2012
Stormwater Solid Waste Total
Operating revenues:
Charges for services $ 259,982 $ 1,260,520 $ 1,520,502
Other revenues -
Total operating revenues 259,982 1,260,520 1,520,502
Operating expenses:
Operating,administrative and maintenance 323,763 1,145,855 1,469,618
Depreciation 38,442 - 38,442
Total operating expenses 362,205 1,145,855 1,508,060
10 , 114,665 12,443
Change in net assets ( 2222)
Net assets,beginning 792,628 (637,500) 155,128
Net assets,ending $ 690,406 $ (522,835) $ 167,571
FT", 7 tic 1"t"'"-
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CITY OF OPA-LOCKA,FLORIDA
NONMAJOR PROPRIETARY FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30,2012
Stormwater Solidwaste Total
Cash flows from operating activities:
Cash received from customers $ 255,987 $ 1,489,170 $ 1,745,157
Cash paid to supplies (207,459) (1,120,565) (1,328,023)
Cash paid to employees (56,987) - (56,987)
Internal activity payments from(to)other funds,net (135,113) 1,281,179 1,146,066
Net cash provided by operating activities (143,572) 1,649,784 1,506,212
Cash flows from noncapital financing activities:
Transfers to other funds - - -
Net cash used in noncapital financing activities - -
Cash flows from capital and related financing activities: , e+*,
Acquisition and construction of capital assets - -
Principal paid on debt - -
Interest paid on debt
Net cash used in capital and related financing
activities -
Cash flows from investing activities:
Interest income -
Net increase in cash (143,572
Net cash provided by investing activities -
1,649,784 1,506,212
(143,572)
Cash,beginning 176,666 - 176,666
Cash,ending 33,094 1,649,784 1,682,878
Display as:
i
Unrestricted 33,094 1,649,784 1,682,878
Restricted - - I
Total 33,094 1,649,784 1,682,878
1
Reconciliation of operating income to cash provided by
operating activities: ,
Operating income(loss) (102,222) 114,665 12,443
Adjustment to reconciled operating income to net cash
provided by(used in)operating activities:
Depreciation expenses 38,442 - 38,442
(Increase)decrease in: 1
Account receivable (539) 4,533 3,994
Due from other funds (193,476) (1,218,750) (1,412,226)
Increase(decrease)in:
Accounts payable and accrued liabilities (1,918) 2,946 1,028 ,
Due to other funds See notes to basic finatwil j ts.
(552,113) (435,971)
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CITY OF OPA-LOCKA,FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITALIMPROVEMENT DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30,2012
Variance
With Final
Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental $ 5,058,266 $ 5,058,266 $ 1,463,335 $ (3,594,931)
Interest - - 7 7
Total revenues 5,058,266 5,058,266 1,463,342 (3,594,924)
Expenditures:
Capital outlay 5,568,266 r X586 - 5,658,266
Debt service: :
Principal 358,000 358,000 358,000 -
Interest 262,650 262,650 302,938 (40,288)
Other debt service costs 1,000 1,000 - 1,000
Bond issuance cost - - - -
Total expenditures 6,189,916 6,279,916 660,938 5,618,978 i
Deficiency of revenues over expenditures (1,131,650) (1,221,650) 802,404 2,024,054
i
Other financing uses:
Debt proceeds - - - -
Transfer in 2,000,000 2,000,000 - 2,000,000
Transfer out (868,350) (778,350) - (778,350)
Total other financing uses 1,131,650 1,221,650 - 1,221,650
Net change in fund balance - - 802,404 (802,404)
Fund balance,beginning 326,214 326,214 326,214 -
Fund balance,end $ 326,214 $ 326,214 $ 1,128,618 $ (802,404)
I
EIs�.I�'/I �Y', C:OVINCToN i 1 ,iIC
C srlihiecJ PAHL AC4_oL mtlt_I11's i C onsuhcnts
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Commission and honorable Mayor
City of Opa-Locka, State of Florida
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of City of Opa-Locka,
State of Florida (the "City") as of and for the year ended September 30, 2012, which collectively
comprise City's basic financial statements and have issued our report thereon dated December
xx, 2013. We conducted our audit in accordance with auditing standards generally accepted in
the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
re)
Management of the City is responsible for establishing and maintaining effective internal con o ' s '
over financial reporting. In planning and performing our audit, we considered the City's internal
control over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we
do not express an opinion on the effectiveness of the City's internal control over financial
reporting.
Our consideration of internal control over financial reporting was for the limited purpose described
in the preceding paragraph and was not designed to identify all deficiencies in internal control
over financial reporting that might be significant deficiencies or material weaknesses and
therefore, there can be no assurance that all deficiencies, significant deficiencies, or material
weaknesses have been identified. However, as described in the accompanying schedule of
findings and questioned costs, we identified certain deficiencies in internal control over financial
reporting that we consider to be material weaknesses and other deficiencies that we consider to
be significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. We consider the deficiencies described in the
accompanying schedule of findings and questioned costs to be material weaknesses. [List the
finding reference numbers, for example, 20X2-1, 20X2-3, and 20X2-4.].
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is
less severe than a material weakness, yet important enough to merit attention by those charged
with governance. We consider the deficiencies described in the accompany schedule of findings
and questioned costs to be significant deficiencies.
[List the finding reference numbers, for example, 20X2-2 and 20X2-5.] .
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free
of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion. The results of our tests disclosed instances of noncompliance
or other matters that are required to be reported under Government Auditing Standards and
which are described in the accompanying schedule of findings and questioned costs as items
[List finding reference numbers, for example, 20X1-1 and 20X1-2.] .
We noted certain other matters that we reported to management of the City in a separate letter
dated December xx, 2013.
The City's response to the findings identified in our audit is described in the accompanying
schedule of findings and questioned costs. We did not audit the City's response and, accordingly,
we express no opinion on it.
This report is intended solely for the information and use of management, City Commission and
honorable Mayor, others within the entity, and federal awarding agencies and pass-through
entities and is not intended to be and should not be used by anyone other than these specified
parties.
Harvey Covington anhs f So�,ti h Florida, LLC
Hollywood, Florida
December xx, 2013
Rs j
A.ecoulilcin r_ Consutl' nts
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT
COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To the City Commission and Honorable Mayor r rr
City of Opa-Locka, State of Florida
Compliance
We have audited City of Opa-Locka, State of Florida's (the "City") compliance with the types of
compliance requirements described in the OMB Circular A-133 Compliance Supplement that
could have direct and material effect on each of City of X, State Y's major federal programs for
the year ended September 30, 2012 the City's major federal programs are identified in the
summary of auditor's results section of the accompanying schedule of findings and questioned
costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to
each of its major federal programs is the responsibility of the City's management. Our
responsibility is to express an opinion on City's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those
standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the City's compliance with
those requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit
does not provide a legal determination of the City's compliance with those requirements.
As described in item(s) [List finding reference number(s), for example, 20X1-3.] in the
accompanying schedule of findings and questioned costs, City of X, State Y, did not comply with
requirements regarding [Identify type(s) of compliance requirement.] that are applicable to its
[Identify major federal program.] . Compliance with such requirements is necessary, in our
opinion,for City of X, State Y, to comply with the requirements applicable to that program.
In our opinion, except for the noncompliance described in the preceding paragraph, City of X,
State Y, complied, in all material respects, with the compliance requirements referred to above
that could have a direct and material effect on each of its major federal programs for the year
ended June 30, 20X1. [The results of our auditing procedures also disclosed other instances of
noncompliance with those requirements, which are required to be reported in accordance with
OMB Circular A-133 and which are described in the accompanying schedule of findings and
questioned costs as items[List finding reference numbers, for example, 20X1-1 and 20X1-2.] .1
Internal Control over Compliance
Management of the City, is responsible for establishing and maintaining effective internal control
over compliance with the requirements of laws, regulations, contracts, and grants applicable to
federal programs. In planning and performing our audit, we considered the City's internal control
over compliance with the requirements that could have a direct and material effect on a major
federal program to determine the auditing procedures for the purpose of expressing our opinion
on compliance and to test and report on internal control over compliance in accordance with OMB
Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, we do not express an opinion on the effectiveness of the
City's internal control over compliance.
( (
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over
compliance that might be significant deficiencies or material weaknesses and therefore, there can
be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been
identified. However, as discussed below, we identified certain deficiencies in internal control over
compliance that we consider to be significant deficiencies
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance,
yet important enough to merit attention by those charged with governance. We consider the
deficiencies in internal control over compliance described in the accompanying schedule of
findings and questioned costs as items
[List finding reference numbers, for example, 20X1-6 and 20X1-71 to be significant deficiencies.
City of X, State Y's responses to the findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. We did not audit City of X, State of Y's
responses and, accordingly, we express no opinion on the responses.
This report is intended solely for the information and use of management, City Council, others
within the entity, federal awarding agencies, and pass-through entities and is not intended to be
and should not be used by anyone other than these specified parties.
Firm's signature
rbt r
Harvey Covington and Thomas of South Florida, LLC
December xx, 2013
Federal
Federal Grantor/Pass-through Granter/Program or CFDA Contract or Identifying
Cluster Title Number Number
U.S. Department of Justice
ARRA Community Oriented Policing Services
(COPS) -Hiring Grant 16.710 2009RKWX0214
Community Oriented Policing Services (COPS) -
Hiring Grant 16.710 2008UMWX0031
Community Development Capacity(CDCO) -Weed
& Seed Program 16.595 2010WSQX0125
ARRA-Edward Byrne Memorial Justice Assistance
Program(JAG)
2009 Recovery Act Grant 16.804 2009SBB91011
Edward Byrne Memorial Justice Assistance Program
(JAG)
2009 Local Solicitation 16.738 2009DJBX1317
Subtotal Department of Justice direct programs:
r
Pass-through program from:
Miami-Dade County Office of Grants
Coordination- Records Improvement Program 16.804 2011JAGCDADE3B2179
Total U.S Department of Justice
U.S. Department of Transportation
Job Access &Reverse Commute (JARC) and New
Freedom Grant
Pass through- South Florida Regional Transportation
Authority 20.516 FL37X05200
U.S. Department of Housing and Urban Development
Community Challenge Grant 14.704 CCPFL0050-11
Pass through programs from:
Miami Dade County Public Housing and Community 14.218 53-70555
Development-Non-Housing Community
Development Block Grant
Total U.S Department of Housing and Urban
Development
TOTAL EXPENDITURES OF FEDERAL
AWARDS
Federal
Expenditures
$ 102,783.83
57,429.66
107,376.75
31,690.90
45,375.00
344,656.14
3,742.00
348,398.14
75,663.90
149,383.72
200,000.00
349,383.72
$ 773,445.76
CITY OF OPA LOCKA, FLORIDA
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2012
NOTE 1 —BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the
federal grant activity of the City of Opa Locka, Florida (the "City"). The information in this
schedule is presented in accordance with the requirements of the Office of Management and
Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations.
For purposes of the Schedule, federal awards include all grants and contracts entered into directly
between the City and agencies and departments of the federal government and pass-through
agencies, as applicable. The City did not transfer awards to subrecipients during the fiscal year
ending September 30,2012.
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SECTION I- SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of Auditor's Report Issued Qualified
Internal Control over financial reporting:
• Material weakness(es) identified X Yes No
• Significant deficiency(ies) identified that are not considered to
be material weaknesses? X Yes No
Noncompliance which is material to the financial statements noted? Yes X No
Federal Awards
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Internal control over major programs:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified that are not considered to
be material weaknesses? X Yes No
Type of auditors' report issued on compliance for major programs: Qualified
Any audit findings disclosed that are required to be reported in
accordance with OMB Circular A-133, Section.510 (a) Yes X No
Major Federal awards programs: Federal CFDA
US Department of Justice:
Consolidated Health Center Cluster:
ARRA COPS Hiring Grant 16.710
ARRA Edward Byrne Memorial Justice Assistance Program 16.804
Dollar threshold used to distinguish between
Type A and Type B programs: $300,000
Auditee qualified as low risk auditee for federal awards program? Yes X No
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CITY OF OPA LOCKA, FLORIDA
Summary Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2012
SECTION II- PRIOR YEAR FINANCIAL STATEMENT FINDINGS
Matters that are repeated in the accompanying Schedule of Findings and Questioned Costs
2011-01 —Utility Billings (Revised and Included in 2012-01)
Recommendation
We recommend the City review the utility billing process currently in place and implement
procedures that will allow for effective and efficient monitoring of cust•.,-r counts.
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View of Responsible Officials and Planned Corrective Actions
Management strongly believes that the action taken on the accounts noted are in accordance with the
City's policies and procedures.
Management has development aggressive procedures to closely monitor all utility customers'
accounts and provide timely resolutions to all issues concerning Utility Accounts. Management will
also review the previous recommendations of the former Utility Billing Supervisor for consideration
for proper action.
2011-02 Account Reconciliations (Revised and Included in 2012-03)
Recommendation
We recommend the City reconcile the general ledger accounts on a monthly basis to ensure
transactions are properly recorded in the correct time period and allow those charged with
governance over the City to make more informed decisions.
View of Responsible Officials and Planned Corrective Actions
Management concurs with the auditor's finding and recommendation. During this period, the
Department was understaffed for close to six (6)months by four (4) key positions and still operating
with three (3) less staff including the Assistant Finance Director and Utility Billing Supervisor,
hence some essential functions of the Department have not been adequately addressed.
Every effort will be made to adequately staff the Department and ensure that the practice of
performing monthly account reconciliations is reinstated and complied with consistently on a
monthly basis.
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CITY OF OPA LOCKA, FLORIDA
Summary Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2012
SECTION II-PRIOR YEAR FINANCIAL STATEMENT FINDINGS (Continued)
Matter that is not repeated in the accompanying Schedule of Findings and Questioned Costs
None
Prior Year Federal Awards Findings and Questioned Costs
None
Prior Year State Financial Assistance Findings and Questioned Costs
N/A
SECTION III—FINANCIAL STATEMENT FINDINGS
Control Deficiencies
2012-01 -Material Weakness- Utility Billings and Receivables
Condition
During our test of controls over utility billings and our review of utility accounts receivables we noted the
following:
• Two related party accounts have been in dispute since 2003. During our review of the disputed
accounts we noted the former Utility Billing Supervisor made a recommendation to the City Manager
on how to settle the dispute with the customer, but no action has been taken. In addition, another
account,for the same customer was subsequently opened and is currently active.
• There were no schedules available that identified customer account balances as of or near the end of
the year end.
Criteria
Utility billing procedures should include accounts reconciled timely and accurately to ensure customer are
billed accordingly and amounts are tied to the ledgers.
Cause
Customer accounts are not being properly maintained, reviewed and reconciled in a timely manner by the
appropriate City personnel.
CITY OF OPA LOCKA, FLORIDA
Summary Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2012
SECTION III—FINANCIAL STATEMENT FINDINGS (Continued)
Control Deficiencies
2012-01 -Material Weakness -Utility Billings and Receivables
Effect
The City may be unable to collect the amount due from accounts that are not timely reviewed or
attainable in a physical document form.
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Recommendation
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We recommend the City review the utility billing process currently in place and implement
procedures that will allow for effective and efficient monitoring of customer accounts.
View of Responsible Officials and Planned Corrective Actions
PRIOR YEAR - Management has development aggressive procedures to closely monitor all utility
customers accounts and provide timely resolutions to all issues concerning Utility Accounts.
Management will also review the previous recommendations of the former Utility Billing Supervisor
for consideration for proper action.
2012-02 -Material Weakness -Interim Reporting
Condition
Financial information should be presented to management on an interim basis to help in financial
decisions and planning.
Criteria
Once account reconciliations have been completed as addressed in finding 2012-02, the appropriate
financial statements should be provided to management for meeting and discussion purposes.
Cause
A complete set of financial reports are not being provided to management on an interim basis.
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CITY OF OPA LOCKA, FLORIDA
Summary Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2012
SECTION III—FINANCIAL STATEMENT FINDINGS (Continued)
Control Deficiencies
2012-02 -Material Weakness-Interim Reporting
Effect
Without proper interim financial information, management may not be able to make prudent
financial decisions or plans.
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Recommendation
A
We recommend that after the proper reconciliation procedures have been adopted as noted in finding
2012-02, the financial reports be prepared and made available for management's meetings and
discussions on an interim basis.
View of Responsible Officials and Planned Corrective Actions
2012-03 - Significant Deficiency-Account Reconciliations
Condition
We noted during the course of the audit that many of the financial statement accounts which include
due to/from other funds, were not properly reconciled to reflect the appropriate balance as of year
end.
Criteria
In order to make the financial reports generated by the accounting system as meaningful as possible,
the City should reconcile the general ledger accounts on a monthly basis. A benefit of monthly
reconciliations is that errors do not accumulate but can be identified and attributed to a particular
period,which makes it easier to perform future reconciliations.
Cause
Financial statement accounts are not being reconciled in a timely manner.
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CITY OF OPA LOCKA, FLORIDA
Summary Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2012
SECTION III—FINANCIAL STATEMENT FINDINGS (Continued)
Control Deficiencies
2012-03 - Significant Deficiency-Account Reconciliations
Effect
The result of the accounts not being properly reconciled could reflect incorrect balances reported in
the financial statements and in any interim reports used for management discussion purposes.
Recommendation
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We recommend the City reconcile the general ledger accounts on a monthly basis to
transactions are properly recorded in the correct time period and allow those charged with
governance over the City to make more informed decisions.
View of Responsible Officials and Planned Corrective Actions
PRIOR YEAR - Management concurs with the auditor's finding and recommendation. During this
period, the Department was understaffed for close to six (6) months by four (4) key positions and
still operating with three (3) less staff including the Assistant Finance Director and Utility Billing
Supervisor, hence some essential functions of the Department have not been adequately addressed.
Every effort will be made to adequately staff the Department and ensure that the practice of
performing monthly account reconciliations is reinstated and complied with consistently on a
monthly basis.
2012-04 - Significant Deficiency-Payroll Documentation
Condition
Employee files should be maintained according to the human resources policies and procedures.
Criteria
Employee files are integral in the preparation of payroll checks, evaluations, promotions and
dismissals.
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CITY OF OPA LOCKA, FLORIDA
Summary Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2012
SECTION III—FINANCIAL STATEMENT FINDINGS (Continued)
Control Deficiencies
2012-04- Significant Deficiency-Payroll Documentation
Cause
During the course of our audit we found the following:
• 9 out of 20 employee files' pay rates did not match the payroll register.
• 3 out of 20 form I-9 are missing from the employee files. 2 of the missing I-9's that were
subsequently provided were dated in November 2013.
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Effect
Employees files should be updated on a regular basis to provide physical and readily available
documentation of any and all individual employee's pay rates and other relevant documentation.
Recommendation
We recommend that employee files be maintained according to the human resource policies and
procedures.
View of Responsible Officials and Planned Corrective Actions
2012-05 - Significant Deficiency-Building Licenses and Permits Cash Receipts
Condition
Building licenses and permits policies and procedures require a copy of the invoice be provided to
the customer and a copy to the finance department.
Criteria
The cash receipt process must be maintained and documented for receivables follow up and
settlement of potential future disputes.
CITY OF OPA LOCKA, FLORIDA
Summary Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2012
SECTION III—FINANCIAL STATEMENT FINDINGS (Continued)
Control Deficiencies
2012-05 - Significant Deficiency-Building Licenses and Permits Cash Receipts
Cause
During the course of our audit we found the following:
• The finance department could not locate 16 of the 30 cash receipts documents requested for
review. Summary amounts were traced to the cash receipt summary sheet and the total from
those sheets tie to the posted total.
Effect
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Without the proper documentation made available to the finance department, any customer issues
may result in an adverse decision to the City.
Recommendation
We recommend that the finance department be more involved in the cash receipts documentation
process and follow up with those responsible for providing the documents. The documents should
then be kept in a more accessible manner.
View of Responsible Officials and Planned Corrective Actions
SECTION IV—FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
Control Deficiencies
2012-06- Significant Deficiency- Schedule of Expenditures of Federal Awards
Condition
The Schedule of Expenditures of Federal Awards (SEFA) should be maintained for year end audit
purposes that would include all grants awarded with related expenditures disclosed.
CITY OF OPA LOCKA, FLORIDA
Summary Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2012
SECTION IV—FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS (Continued)
Control Deficiencies
2012-06 - Significant Deficiency- Schedule of Expenditures of Federal Awards
Criteria
The SEFA must include all information needed to conduct the audit of the federal programs for year
end federal reporting purposes.
Cause
During the course of our audit, several amounts originally provided had to be restated and there were
several grants that were not included in that original schedule. Those missing grants were designated
for and related to capital expenditures.
Effect
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Without a proper and complete SEFA provided at the beginning of the audit, determination of
several key components and the related audit procedures for the federal programs and for reporting
purposes will require a complete restructuring of the audit plan and have a potential affect on the
reports.
Recommendation
We recommend that an interim schedule be maintained for all grants open p g and any current year
activity for new grants, and collections and expenditures on existing grants. This schedule will also
identify grants that may be expiring soon to limit any loss of grant funding.
View of Responsible Officials and Planned Corrective Actions
2012-07- Significant Deficiency-Federal Clearinghouse Submission
Condition
The Federal Single Audit Act requires that reports be filed with the Federal Clearinghouse on a
timely basis.
CITY OF OPA LOCKA, FLORIDA
Summary Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2012
SECTION IV—FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS (Continued)
Control Deficiencies
Criteria
Federal agencies depend on data that is collected at the Federal Clearinghouse to make funding
decisions for the coming periods..
Cause
Due to delays in the finalization of the financial information for the prior year audit and based on our
review of the Federal Clearinghouse website,the City had not timely filed the reports.
Effect ,
The City could lose Federal grant funding if these reports are not timely filed.
Recommendation
We recommend that the responsibility be given to a specific individual in the finance department and
be discussed as required to insure that the reporting requirements have been met.
View of Responsible Officials and Planned Corrective Actions
SECTION V—STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS
N/A
HARNfr l'', ~COVINGTON & I'I ( MA$rll N
Certi(iecl Public_ Accountanrs cx ConstuItr:Os
MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE
AUDITOR GENERAL OF THE STATE OF FLORIDA
To the City Commission and honorable Mayor
City of Opa-Locka, State of Florida.
F j
We have audited the financial statements of the City of Opa-Locka, State'of Florida,(the
"City") as of and for the fiscal year ended September 30, 2012, and have issued our
report thereon dated December xx, 2013 which included a generally accepted accounting
principle departure and scope limitation based the omission of the City's long-term other
post employment benefits (OPEB)liability in the City's statement of net assets.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States;
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations; and Chapter 10.550, Rules of the Florida Auditor General. We have
issued our Independent Auditor's Report on Internal Control over Financial Reporting
and Compliance and Other Matters Based on an Audit of the Financial Statements
Performed in Accordance with Government Auditing Standards, Independent Auditor's
Report on Compliance with Requirements That Could Have a Direct and Material Effect
on Each Major Federal Program and on Internal Control over Compliance in Accordance
with OMB Circular A-133 and Schedule of Findings and Questioned Costs. Disclosures
in those reports and schedule, which are dated December xx, 2013, should be considered
in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the
Auditor General, which governs the conduct of local governmental entity audits
performed in the State of Florida. This letter includes the following information, which is
not included in the aforementioned auditor's reports or schedule:
El Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine
whether or not corrective actions have been taken to address findings and
recommendations made in the preceding annual financial audit report. Corrective actions
have not been taken to address findings and recommendations made in the preceding
annual financial audit report (except as noted below under the heading Prior Year
Findings and Recommendations - use when appropriate). (If there were no
recommendations made in the preceding audit report, state such in the management
letter. If the audit findings in the preceding financial audit report are uncorrected, the
auditor must identify those same findings that were included in the second preceding
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fiscal year financial audit report. Any such findings must be clearly referenced to the
corresponding findings included in each of the two preceding financial audit reports.)
❑ Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a
review of the provisions of Section 218.415, Florida Statutes,regarding the investment of
public funds. In connection with our audit, we determined that the City complied with
Section 218.415, Florida Statutes.
❑ Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. In
connection with our audit, we had the following recommendations as noted by 2012- in
the schedule of findings and questioned costs (or, if applicable, state the
recommendations). T
❑ Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address
violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse,that
have occurred, or are likely to have occurred, that have an effect on the financial
statements that is less than material but more than inconsequential. In connection with
our audit,we did not have any such findings
Li Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may,
based on professional judgment,report the following matters that have an inconsequential
effect on financial statements, considering both quantitative and qualitative factors: (1)
violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and
(2) Deficiencies in internal control that are not significant deficiencies. In connection
with our audit, we did not have any such findings (or, if applicable, state the findings
and recommendations).
❑ In accordance with Section 10.554(1)(i)6., Rules of the Auditor General, the name or
official title and legal authority for the primary government are disclosed in the notes to
the financial statements.
❑ Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be
included as to whether or not the local governmental entity has met one or more of the
conditions described in Section 218.503(1), Florida Statutes, and identification of the
specific condition(s) met. In connection with our audit, we determined that the City did
not meet any of the conditions described in Section 218.503(1), Florida Statutes.
❑ Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine
whether the annual financial report for the City for the fiscal year ended September 30,
2012, filed with the Florida Department of Financial Services pursuant to Section
218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for
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the fiscal year ended September 30, 2012. In connection with our audit, we determined
that these two reports were in agreement.
❑ Pursuant to Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, we
applied financial condition assessment procedures. It is management's responsibility to
monitor the City's financial condition, and our financial condition assessment was based
in part on representations made by management and the review of financial information
provided by same.
Our management letter is intended solely for the information and use of the Legislative
Auditing Committee, members of the Florida Senate and the Florida House of
Representatives, the Florida Auditor General, Federal and other granting and applicable
management, and is not intended to be and should not be used by anyone other than these
specified parties.
Dr Ar
Harvey Covington and Thomas of South, Florida LLC
December xx, 2013
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