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Home My WebLink AboutSEOPW-CRA-Discussion Item 2• • CRA Board of Directors Meeting March 29, 2004 • ITEM 2 OFFICIAL REPORT Harvey, Branker & Associates, P.A., CPA Consulting Finn: CRA Financial Summary through Month End February 29, 2004 MSCUSSED 92 1 • The City Allami, Florida Community Redevelopment Agency Monthly Financial Consolidated Revenue/Expenditures - Project As of February 29, 2004 • SOUTHEAST OVERTOWN PARK WEST OMNI GENERAL OPERATING CRA TOTALS FY 2004 FY 2004 FY 2004 FY 2004 FY 2004 FY 2004 FY 2004 FY 2004 FY 2004 FY 2004 FY 2004 FY 2004 REVISED AS END %01 REVISED AS END %et REVISED AS END %of REVISED AS END %0/ BUDGET OF FEB Budget Variance BUDGET OF FEB Budget Variance BUDGET OF FEB Budget Variance BUDGET OF FEB e1 Varlawe SUMMARY REVENUES TAX INCREMENT REVENUES 1,730,332 1,730,332 100.0% 2,195.715 2,195,715 100.0% 3,926,047 3,926,047 100% CONTRIBUTION GOV7S-COUNTY 1,008,564 943,558 93.6% 65,006 1,774,495 2,046,392 115.3% 271,897 - 2,783,059 2,989,950 107% 336,903 OTHER REVENUES 5,012,642 14,358 0.3%11 4,998,284 787,123 22,934 2.9% 764,189 1,696,240 221,564 13.1% 1,696,240 7,496,005 258,856 3% 7,458,713 TOTAL REVENUES 7,7511538 2,688,248 34.72i 6,063,290 4,757,133 4,265,W1 89.7% 1 1,036,086 1,696,240 221,564 13.1% 1,696,240 14,205111 7,174,853 61% 7,795,616 EXPENDITURES PERSONNEL SERVICES - - 1,084,959E5,477 22.1% 845,272 1,084,959 239,687 22% 845,272 OPERATING EXPENSES K72.6.398 302,182 12.9% 2,045,769 1,726,127 96,330 5.6% 1,629,797 550,028 19.1% 414,977 4,624,106 503,563 11% 4,120,543 CAPITAL PROJECTS 1.113,637 30.8% 2,497,739 53,000 19,635 -37.0% 72,635 10,000 10,000 3,674,376 1,094,002 30% 2,580,374 GRANTS AND AIDS 19,190 1.8% 1,046,623 593,434 27,000 4.5% 566,431 1,659,247 46,190 3% 1,613,057 NON OPERATING 0.0% 726,398 2,384,772 0.0% 2,384,772 51,253 10.7% 45.776 3.162,423 5,477 0% 3,156,946 TOTAL EXPENDITURES 7,751,638 1,435,009 16.5% 6,316,529 4,797,133 103,695 22% 4,663,638 1,696,240 350,215 20.6% 1,346,025 14,205,111 1,888,919 13% 12,316,192 REVENUE LESS EXPENDITURES 1,253,239 4,161,146 128,651 6,285,934 File: Report Submitted on March Agenda.xls 3/12/2004 0 • Redevelopment Agency Omni Ta Omni Tax Increment Fund Interlocal • Monthly Financial - Budget vs. Actual Revenue/Expenditures - Project As of February 29, 2004 FY 2004 FY 2004 REVISED AS END % of OMNI TAX INCREMENT FUND BUDGET Enc OF FEBRUARY Budget Variance Revenues 01 TAXES 100 CURRENT AD VALOREM TAXES 001 TAXES REAL CURRENT 2,195.715 2,195.715 - 03 INTERGOVERNMENTAL REVENUE 377 ECONOMIC ENVIRONMENT 310 CONTR FROM OTHER GOVTS-COUNTY 1,774,495 2.046,392 115.3% 271,897 04 CHARGES FOR SERVICES 311 MAJOR DESC. NOT FOUND 754 CRA FUND T/OUT SEOPW - - - - 06 MISCELLANEOUS REVENUE 601 INTEREST INCLUDING PROFIT ON 1 094 INTEREST ON INVESTMENT 48,000 25,001 52.1% 22,999 244 CARRYOVER FUND BALANCE 726,283 726.283 749 GAIN/LOSS INVESTMENTS 12,840 (2,067) 14,907 TOTAL REVENUES 4,757,333 4,265,041 89.7% 1,036,086 Expenditures 10 PERSONNEL SERVICES 100 SALARIES & WAGES -FIXED 010 SALARIES -UNCLASSIFIED 200 FRINGE BENEFITS -FIXED 100 SOCIAL SECURITY CONTRIB 30 OPERATING EXPENSES 300 OPERATING EXPENSES -FIXED 280 PROFESSIONAL SERVICES - ACCTG 109,000 7,519 . 6.9% 101,481 287 ADVERTISING 470 ENTERTAINMENT 10,000 - 10,000 J 400 OPERATING EXPENSES -VARIABLE 230 PROFESSIONAL SERVICES - ARCHIT - - 250 PROFESSIONAL SERVICES - LEGAL 150,002 400 0.3% 149,602 270 PROFESSIONAL SERVICES - OTHER 1,421,625 53,211 3.7% 1,368.414 340 OTHER CONTRACTUAL SERVICES - 0 - - - 680 PRINTING/BINDING - OUTSIDE - 690 PROMOTIONAL ACTIVITIES 35,000 35,000 100.0% - 760 BOOKS PUBLICATIONS MEMBERSHIPS 500 200 40.0% 300 60 CAPITAL OUTLAY 500 CAPITAL OUTLAY -VARIABLE 860 CONSTRUCTION IN PROGRESS 53.000 (19,635) -37.0% 72,635 80 GRANTS AND AIDS - 600 GRANTS IN AID - 940 OTHER GRANTS AND AIDS 593,434 27,000 4.5% 566,434 90 NON -OPERATING - 600 TRANSFERS TO OTHER FUNDS 951 CONTRI/TRANSFER TO DEBT SERVIC - - - - 952 CONTRIBUTION TO CAP PROJECTS 439,143 439,143 996 BUDGET RESERVE 515,629 515,629 700 PRIOR YEAR'S APPROPRIATION - 905 INTERGOVERNMENTAL CHARGES 1,430,000 1.9% 1,430,000 TOTAL EXPENDITURES 4,767,333 0 103,695 2.2% 4,663,638 REVENUE LESS EXPENDITURES 4,161,346 NOTE: MARCH 2O04 - ENCUMBRANCES WILL BE DISCLOSED IN MARCH 2O04 REPORT (ngipp (� p�' UUS `U✓ V� RISE® v e Community Redevelopment Agency • • South East Overtown Park Monthly Financial - Budget vs. Actual Revenue/Expenditures.- Project As of February 29, 20D4 FY 2004 FY 2004 REVISED AS END %of BUDGET Eric OF FEBRUARY Budget Variance SEOPW -Ord 10039 Revenues 01 TAXES 100 CURRENT AD VALOREM TAXES 001 TAXES REAL CURRENT 1,730,332 1,730,332 100.0% 031NTERGOVERNMENTALREVENUE 377 ECONOMIC ENVIRONMENT 310 CONTR FROM OTHER GOVTS-COUNTY 1.008,564 - 943,558 93.6% 65.006 383 OTHER PAYMENTS FROM LOCAL UNIT 235 OFF-STREET PARKING 30,000 - 30,000 04 CHARGES FOR SERVICES 438 HOUSING 264 PROPERTY SALE - 06 MISCELLANEOUS REVENUE 601 INTEREST INCLUDING PROFIT ON I 094 INTEREST ON INVESTMENT 80.000 - 24,336 30.4% 55,664 379 INTEREST INCOME -OTHER 603 (603) 749 GAIN/LOSS INVESTMENTS 3,404 (10,581) 13.985 607 RENT AND ROYALTIES 070 RENTAL PROPERTIES 08 NON -REVENUES 801 INTERFUND TRANSFER 140 TRANSFER FROM COMMUNITY DEVELO 244 CARRYOVER FUND BALANCE 4,899,238 4,899,238 807 OTHER NON -REVENUES 990 OTHER NON -OPERATING TOTAL REVENUES 7,751,538 2,688,248 34.7% 5,063,290 Expenditures 10 PERSONNEL SERVICES 100 SALARIES & WAGES -FIXED 010 SALARIES -UNCLASSIFIED 200 FRINGE BENEFITS -FIXED 100 SOCIAL SECURITY CONTRIB 30 OPERATING EXPENSES 300 OPERATING EXPENSES -FIXED 280 PROFESSIONAL SERVICES - ACCTG 60,000 15,519 44,481 602 INTEREST EXPENSE 67.000 - 67,000 400 OPERATING EXPENSES -VARIABLE 220 PROFESSIONAL SERVICES - APPRAI 100,000 0.0% 100.000 250 PROFESSIONAL SERVICES - LEGAL 150,002 22,174 14.8% 127.828 270 PROFESSIONAL SERVICES - OTHER 1.799,549 244,769 13.6% 1,554,780 340 OTHER CONTRACTUAL SERVICES - 0 171,000 19,520 11.4 % 151.480 760 BOOKS PUBLICATIONS MEMBERSHIPS 400 200 50.0% 200 60 CAPITAL OUTLAY 500 CAPITAL OUTLAY -VARIABLE - 810 LAND - 0.0%- 860 CONSTRUCTION IN PROGRESS 3,611,376 - 1,113,637 30.8%" 2',497,739 80 GRANTS AND AIDS - 600 GRANTS IN AID - 940 OTHER GRANTS AND AIDS 1,065,813 19,190 1.8% 1.046,623 90 NON -OPERATING 600 TRANSFERS TO OTHER FUNDS - 951 CONTRI[TRANSFER TO DEBT SERVIC 350,000 - 350.000 956 CONTRIBUTION TO SPECIAL REVENU - - - - 950 CONTRIBUTION TO GRAIL FUND 346,066 346.066 960 CONTRIBUTION TO TRUST & AGENCY 996 BUDGET RESERVE 30,332 - 30,332 TOTAL EXPENDITURES 7,751,538 1,436,009 18.6% 6,316,629 REVENUE LESS EXPENDITURES 1,253,239 USCUSSED NOTE: MARCH 2O04 - ENCUMBRANCES WILL BE DISCLOSED IN MARCH 2004-REPORT w n w 2 J 1cJ '� 0 t�� Community Redevelopment Agency • • General Operating Monthly Financial - Budget vs. Actual Revenue/Expenditures - Project As of February 29, 2004 FY 2004 FY 2004 oil REVISED AS END % of BUDGET Enc OF FEBRUARY Budget Variance GENERAL OPERATING Revenues 06 MISCELLANEOUS REVENUE 601 INTEREST INCLUDING PROFIT ON 1 094 INTEREST ON INVESTMENT 8,500 8,500 139 REIMB. PR. YR. EXPEND. 244 CARRYOVER FUND BALANCE 7.143 7,143 749 GAIN/LOSS INVESTMENTS (3) - - 607 RENT AND ROYALTIES 070 RENTAL PROPERTIES - - - 08 NON -REVENUES 801 INTERFUND TRANSFER 140 TRANSFER FROM COMMUNITY DEVELO 236,000 1,795 236,000 736 CONTR. FRM. OFFSTR. PARKING - - - 905 MAJOR DESC. NOT FOUND - 193 CONTRIBUTION FROM GN.FD. 659.388 219,772 33.3% 659,388 09 INTERNAL SERVICE FUNDS 905 CONTRIBUTION FROM OTHER FUNDS 356 CONTRIBUTION FROM TRUST AND AG 785,209 - 785,209 TOTAL REVENUES 1,696,240 221,664 13.1% 1,696,240 Expenditures 10 PERSONNEL SERVICES 100 SALARIES & WAGES -FIXED 001 SALARIES - CLASS. PERM. FT 133,062 11,920 9.0% 121,142 006 EARNED TIME PAYOFF - - - 010 SALARIES -UNCLASSIFIED 707.922 195,877 27.7% 512.045 013 SALARIES - TEMPORARY 50,000 - - 50,000 200 FRINGE BENEFITS -FIXED - 080 EXPENSE ALLOWANCE 20,000 1,810 9.1% 18,190 083 CAR ALLOWANCE 10,800 4,154 38.5% 6,646 100 SOCIAL SECURITY CONTRIB 65,000 13,873 21.3% 51,127 110 RETIREMENT CONTRIB. 40,000 - - 40,000 130 GROUP INSURANCE CONTRIB. 40,000 11,804 29.5% 28,196 150 WORKER'S COMPENSATION 3,700 - 3,700 160 UNEMPLOYMENT COMPENSATION 6,300 6,300 170 SEVERANCE PAY 4,175 - - 4.175 180 TUITION REIMBURSEMENT 4,000 249 0.1 3,751 30 OPERATING EXPENSES 300 OPERATING EXPENSES -FIXED 280 PROFESSIONAL SERVICES - ACCTG - - - - 287 ADVERTISING 25,000 4.412 17.6% 20,588 410 TRAVEL AND PER DIEM - TRAINING 50,000 299 - 49,701 420 TRAVEL AND PER DIEM - OTHER 14,000 4.229 30.2% 9,771 470 ENTERTAINMENT 1,600 - - 1,600 495 PARKING EXPENSE 20,000 - - 20,000 533 POSTAGE 500 91 18.2% 409 540 UTILITY SERVICES 3,000 1,228 40.9% 1,772 560 UTILITY SERVICES - WATER 5,000 - - 5,000 610 RENT OF EQUIPMENT- OUTSIDE 35,000 6,831 19.5% 28,169 620 RENT BUILDINGS 166,000 60,901 36.7% 105,099 635 RENT OTHERS - - - - 710 FOOD 5,000 2,149 43.0% 2,851 715 MOTOR FUEL 400 - - 400 400 OPERATING EXPENSES -VARIABLE - 230 PROFESSIONAL SERVICES - ARCHIT - 250 PROFESSIONAL SERVICES -LEGAL - . 270 PROFESSIONAL SERVICES -OTHER 30,028 1,965 6.5% 28,0018CU ® 1 r_ n1 Community Redevelopment Agency • General Operating Monthly Financial - Budget vs. Actual Revenue/Expenditures - Project As of February 29, 2004 FY 2004 FY 2004 REVISED AS END % of BUDGET Enc OF FEBRUARY Budget Variance 289 SPECIAL SERVICES - MISCELLANEO 49,000 3,900 8.0% 45,100 330 TAXES - - - - 340 OTHER CONTRACTUAL SERVICES - 0 40,000 1,993 5.0% 38.007 510 COMMUNICATIONS SERV. TELEPH. 0 41,000 2,156 5.3% 38,844 534 DELIVERY SERVICES 2.000 43 2.2% 1,957 650 INSURANCE - LIABILITY 25,000 9,844 39.4% 15,156 670 REPAIR/MAINTENANCE - OUTSIDE 10,000 674 6.7% 9,326 680 PRINTING/BINDING - OUTSIDE 6,000 (15) -0.3% 6,015 690 PROMOTIONAL ACTIVITIES - 700 OFFICE SUPPLIES 8,500 1,831 21.5% 6,669 722 MISCELLANEOUS SUPPLIES 1,000 116 11.6% 884 760 BOOKS PUBLICATIONS MEMBERSHIPS 12,000 2,404 20.0% 9,596 60 CAPITAL OUTLAY - 500 CAPITAL OUTLAY -VARIABLE 810 LAND - - - - 840 EQUIPMENT -NEW 10,000 10,000 841 OFFICE FURNITURE - NEW - - 843 EQUIPMENT LEASE -PURCHASED 860 CONSTRUCTION IN PROGRESS 880 CAPITAL LEASES 80 GRANTS AND AIDS 600 GRANTS IN AID 940 OTHER GRANTS AND AIDS 946 REHABILITATION GRANT AWARDS 90 NON -OPERATING 600 TRANSFERS TO OTHER FUNDS 950 CONTRIBUTION TO GRAL FUND 956 CONTRIBUTION TO SPECIAL REVENU 700 PRIOR YEAR'S APPROPRIATION 901 PERSONAL SERVICES - - - 903 MATERIALS AND SUPPLIES 51,253 5,477 10.7% 45,776 TOTAL EXPENDITURES 1,696,240 0 350,215 20.6% 1,346,025 REVENUE LESS EXPENDITURES (128,651) NOTE: MARCH 2O04 - ENCUMBRANCES WILL BE DISCLOSED IN MARCH 2O04 REPORT 0 00SCUSSED aLr-In =� o� 4ea ys 4 �1, h " Y ®9 G`TY OF;�f ART,t&R' E. TEELE;. jR'. 9 . ' ,� �� . �aQ �h FRANK.K. RULLASON airman Leo F�o4` Executive Director yy Iy I SEOPW and Omni CRAs' External Audit b Findings and Other Observations Status Report as of 3/29/04 Item Year Reportable Other Subject Condition Found Corrective Action Projected Date no. Condition Observation Resolution Resolved (Severe) (Less Severe) Date 1 2003-1 X Capital Assets Updating.the capital assets listing (i.e. updating A procedure has been instituted wherby March '04 Additions and additions and disposals) is not performed all capital purchases in the amount of Disposals throughout the year, but instead is performed at $1,000 or more go through the office of the end of the year through a search of invoices the Agencies' Financial Officer to be paid. We noted several items that were not added to the capital assets listing included on the capital assets listing at year-end. (current inventory) at the time of delivery, rather than waiting for the annual inventory update. 2 2003-2 , X Line Item Expenditure On several occasions, we noted expenditures A procedure has been instituted whereby March '04 Classifications that were recorded in the incorrect line item all expenditures are entered in both the classification. For example, we noted: City's GEMS system and in the Agencies' • • A forgivable loan (grant) incorrectly recorded in-house computerized accounting in the membership dues expenditure line item system. On a monthly basis, the account Agencies' system will be reconciled • A forgivable loan (grant) incorrectly recorded against the City's financial system to in the promotional activities line item account capture any inconsistencies and allow for • Construction in -progress (services performed a more accurate recording of all by HJ Ross) incorrectly recorded in the expenditures in the proper line item professional services line item account. classification. 3 2003-3 X Maintaining The Agencies' Finance Department does not The Agencies' Financial Officer in concert Jun. '04 Authoritative maintain any government accounting literature with the Agencies' external CRA Accounting Literature for reference and guidance. consultant will establish an in-house library of appropriate accounting literature, either through printed material or available computerized subscription. SEOPW and Omni CRAs' External Audit Findings and Other Observations Ah s Item Year portable Other Subject ConaM!IrFound Corrective Action Projeclea Date no. Condition Observation TResolution Resolved (Severe) (Less Severe) Date 4 2002-1 X Grants Management Inadequate records to allow readily available Agencies' CPA (HB&A) to develop policy May'04 and Accounting information with respect to the names of and procedure to document all grants on organizations funded along with the amounts an individual basis allowing for selective grants, purpose, and status of the grant auditing on a grant by grant basis. Draft policy to be reviewed by Executive Director. 5 2002-2 X Contract Agreements Several third -party contractors were paid for As of 3 quarter of FY '03, at V party May'04 services in FY '02 with no agreement between contractor invoices are matched to the contractor and the Agency found to be approved resolutions, executed executed nor approved by the Board. contracts, PO's, and/or work orders. Agencies' CPA (HB&A) to formalize into • policy and procedure. Draft policy to be reviewed by Executive Director. 6 2002-3 X Improper Use of Tax The Margaret Pace Park project, within the Omni Currently, multiple signatory financial April 2003 Increment Funds Area was paid from tax increment funds (TIF) approval form in place to authorize all collected by and earmarked for SEOPW area funding sources. CRA has requested journal entry to restore funds to SEOPW; in process with City Finance & Budget. 7 2002-4 X Loan Administration Inadequate records on the status of outstanding CRA has entered into agreement with Sept. '03 loans to include complete inventory of all loans NDC for Grow Miami Fund to administer all future loans. "8 2001-1 X Level of Staff within Agencies' Finance Department is short qualified Agencies' CPA (HB&A) to evaluate May. '04 the (CRA) Finance staff thus delaying financial reporting; most, if all current and total financial operations and Department of analysis and reconciliation of general ledger submit written report of findings and accounts are not performed on a timely basis recommended action plan —to be coupled with findings from internal audit. To be further reviewed by Oversight Committee. 9 2001-3 X Encumbrance Agencies do not use a purchase order system to CRA plans to partner with City of Miami Jan. '04• Accounting encumber the purchase of goods and services. and implement GEMS procurement and encumbrance computerized system. GEMS Training has taken place for CRA Staff. CRA will be on-line by March 1, 2004. CRA has implemented a comprehensive accounting software package. 10 2001-4 X Payroll File Documentation supporting staff salaries and pay Agencies' staff has updated all employee Aug. '03 Maintenance rates lacking in employee personnel files personnel files to include payroll information. 11 2001-5 X Project Cost Agencies lack formal system to account for CRA plans to partner -with City of Miami Dec. '03 Jan. '04 Accounting ongoing capital projects � and implement GEMS procurement and encumbrance computerized tracking S I system. GEMS on hold for CRA while SEOPW and Omni CRAs' External Audit Findings and Other Observations. a Item Year ` — eportable Other Subject ConaiMii Found Corrective Action ProjMed Date no. Condition Observation Resolution Resolved (Severe) (Less Severe) Date software problems are resolved. CRA has implemented a comprehensive accounting software package. 12 2000-1 X Establishing Controls Agencies rely only on the general ledger reports Agencies' CPA (HB&A) to develop policy May. '04 over General Ledger prepared by City Finance Department and do not and procedures for in-house perform independent reconciliation of account reconciliation of all accounting balances and activity, including cash balances transactions to include pool -cash maintained by the City of Miami. Draft policy to be reviewed by Executive Director. 13 2000-2 X Timely Preparation of Agencies do not have formalized year-end Agencies' CPA (HB&A) to develop policy May. '04 Financial Statements financial reporting process to facilitate the and procedure for formalized year-end preparation of their financial statements financial reporting process. Audit binder for FY '03 was prepared by 12/1/03 and presented to External Auditor (SKJ) on 1/12/04. Draft policy to be reviewed by Executive Director. 14 2001-6 X Operational Review Present organizational structure does not Board appointed permanent Exec. Jan. '04 support the demands on staff to maintain an Director on 11/25/02. New Exec. Director efficient and effective operation hired an Agenda Coordinator on 5/6/03 and a Financial Officer on 11/24/03. Board selected a new external auditing firm on December 8, 2003. To be further reviewed by CRA Oversight Committee. 15 2001-8 X Budgetary Accounting Agencies prepare their annual budget on a FY '04 Budget was prepared and Dec. '03 Sep. '03 combined entity -wide basis, as opposed to a approved by CRA area and general fund basis operating fund tagged to each agency's current accounting structure which will facilitate proper external financial reporting and auditing. 16 1999-1 X Leased Properties Agencies do not have a system that allows for Agencies' CPA (HB&A) to develop policy May'04 the identification of all properties held for lease. and procedure for formalized leased Agencies unable to determine if some properties properties system to include real property are leased and nature of lease agreements. inventory and records search. Draft policy to be reviewed by Executive Director. City's IT Dept. to run comparative land ownership against the universe of all land in both CRA areas Wd 0 %: C �h C6 V 0 SIUPW Fil2ings and Omni CRAB' External Audit and Other Observations