HomeMy WebLinkAboutM-86-0843s � _
CITY OR MIAMI. FLORIDA
# _jNT1rR-Orfr10E M9MORANDIUM
____ es�aex.rw eewwws.r.s.n wee�.�w a .seen.®..�s.��eeeee.e.� -
ro: Honorable Mayor and Members DATE: SEP 1 81986
of the City -Commission
SUBJECT: Casino Espanol
Cesar H. Odio 9/25/36 Commission
City Manager REFERENCES: l e e t i n g
ENCLOSURES:
The matter of the City's audit of Casino Espanol's membership
program is being scheduled on this agenda pursuant to Motion qo.
86.740, adopted by the City Commission on September 11, 1985.
i
CITY OF MIAM1. FLORIDA
TO: Cesar H. Odio
City Manager
INTER -OFFICE MEMORANDUM
DATE: September 30, 1986 rnLE, 86-429A
SUBJECT: Summary of the Amended Review of
Casino Espanol de la Habana, Inc.,
Membership Roster and Fees Paid
.ROM: Sujan S. Chhabra, Director REFERENCES: for the Period February 8, 1984
Department of Internal Audits through September 30, 1986
and Reviews + - ENCLOSURES:
The amended review of Casino Espanol de la Habana, Inc., disclosed the following
information obtained from the additional records and documents received on
September 29, and 30, 1986 by the Department of Internal Audits and Reviews, for
the period February 8, 1984 through September 30, 1986:
1. The number of members of the Casino project was determined from each
membership application, as shown below:
Members
Iyae Number
Applicant 298
Spouse 246
Children $ Relatives 422
Total Membership as
of September 29, 1986 966
2. As of September 29, 1986, the review of the two hundred and
ninety-eight (298) applications and payment records revealed that two
hundred and thirty (230) of the applicants had paid all or part of
their initial fees and sixty-eight had paid nothing.
3. Revenue received by the Casino project for the period February 1, 1984
through September 29, 1986, were derived from the following sources:
Membership Fees, Dues, Donations $ 86,311.35
Banquet and Advertising 41,245.14
Loans Payable - Directors 970.00
Loans from the Casino's Projects
Board of Directors 35.000.00
Total Revenue to 9/30/86 $163,526.49
4, Bank balances as of 9/30/86, for the Casino project's three checking
accounts amounted to $129,574.07.
Casino Espanol de la Habana, Inc.
Page 2
S. Checks issued in the amount of $33,839.84 during this period audited
were for the expenses incurred in providing banquets, advertising,
legal, and office supply expenses. Due to limited time, the invoices,
receipts, and statements for the checks issued were not examined.
e
AMENDED REVIEW OF THE CASINO ESPANOL DE LA HABANA, INC.
MEMBERSHIP ROSTER AND FEES PAID
m
CITY OF MIAMI• FLORIDA
OFFICE OF INTERNAL AUDITS
AUDIT REPORT
TO Cesar H. Odio DATE. September 30, 1986 FILr$6-429A
City Manager /
AUDIT Amended Review of Casino Espanol de
la Habana, Inc., Membership Roster
and Fees Paid for the Period
FROM Sujan S. Chhabra rector PERIOD February 8, 1984 through
Department of Iateftal Audits September 30, 1986
and Reviews ( ENCLOSURES
I. DESCRIPTION
A. The review dated September 23, 1986 of Casino Espanol de la Habana,
Inc.'s records, was amended to include the information obtained from
the additional records and documents received on September 29, and 30,
1986, from Benjamin Fernandez, Accountant for the Casino's project.
B. The additional information received by the Department of Internal
Audits and Reviews, subsequent to the initial review was obtained from
the following records and documents:
a. Membership applications (72 additional)
b. Bank Deposit Tickets to September 29, 1986
c. Bank Statements to September 30, 1986
C. Additional information needed will be obtained at a later date, if
requested.
II. PRIOR YEAR'S AUDIT FINDINGS AND RECOMMENDATIONS NOT ACTED UPON
1. There were no recommendations in the initial review.
III. CURRENT YEAR'S AUDIT FINDINGS AND RECOMMENDATIONS
A. FINDING #1 - The number of members in the Casino Espanol de la Habana,
Inc., was determined from the information obtained from each
membership application on file in the Casino's project's office.
i. Children under 21 years of age and any female relative living
with the applicant is included as a member.
ii. The total number of members of the Casino project on
September 29, 1986, includes the applicant, spouse, children and
relatives indicated on signed applications, as shown below:
4N
�i
Cesar H. Odio
City Manager
Page 2 of 5
LM
Applicant
Spouse
Children & Relatives
Total Membership as of
September 29, 1986
Membership Roster A Fees
86-429-A
Number
298
246
422
966
Note: Three membership applications remain unsigned.
However, each applicant had paid the $500 initial fee
and was, therefore, included in the total.
iii. As of September 29, 1986, the review of the two hundered and
ninety-eight (298) applications and payment records revealed that
two hundred and thirty (230) of the applicants had paid all or
part of their initial fees and sixty-eight had paid nothing.
S. FINDING #2
1. Bank balances for the Casino Espanol de la Habana's three
accounts were verified by comparing bank deposit slip totals to
deposits recorded on the bank statements and cancelled checks to
checks charged on the bank statements. The source of revenues
deposited was determined from the payees listed on the deposit
slips and the cash Receipts Journal, no cash receipts were issued
for initial fees paid. Cancelled checks were the receipts for
the applicants' payments.
2. Revenues received by Casino Espanol de la Habana, Inc., for the
period February 1, 1984 through September 29, 1986, were derived
from the following sources:
Initial Membership Fees $ 80,935.10
Membership Monthly Fees 3,640.00
Membership Donations 1,736.25 $ 86,311.35
Banquet Receipts 40,�870.14
Advertising 375.00 41,245.14
Loans Payable - Directors 970.00
Loans from the Casino Project's
Board of Directors 35.000.00
Total Revenue to 9/30/86 $163,526.49
a. Membership donations of $12 were made by members during the
year 1984, prior to the requiring of the initial membership
fees.
b. The Casino's project accountant, Benjamin Fernandez,
informed this department that the Board of Director's loans
C
Cesar H. Odio
City Manager
Page 3 of 5
Membership Roster A Fees
86-429-A
to the Casino project in the amount of $35,000 were to cover
unpaid initial membership fees. When the fees due are paid
by the members, then the loan will be repaid to the
Directors in full. Nine hundred and seventy dollars ($970)
collected from members have been credited to the "Loans
Payable - Directors Account."
3. Bank Statements
a. NCNB National Bank of Florida Operational
Checking ccount Number 91 1 -99
Source of Revenue Deposits Bank Balance
Membership Donations (year 1984) $ 1,736.25
Banquet Receipts 40,870.14
Advertising 375.00
Loans Payable - Directors 970.00
Monthly Membership
Fees ($10 & $5) 3,640.00
Total Deposits 47,591.39
Less: Disbursements $33,839.84
Bank Charges 114.58 33,954.42
Balance 9/30/86 $13,636.97
b. NCNB National Bank of Florida Building Fund
hec ingAccount Number3913119-791
Source of Revenue Deposits Bank Balance
Initial Membership Fees $67,075.10
Loans from Board of Directors 35,000.00
! Miscellaneous 2.00
Balance 9/30/86 $102,077.10
c. Ocean Bank of Miami Buildi Fund
(Checking)Account Number 9 - 05
Source of Revenue Deposits Bank Balance
Initial Membership Fees $13,860.00 $ 13,860.00
d. Total Bank Balances 9/30/86 $129,574.07
Checks issued totalling $33,839.84 included expenses incurred in
providing banquets, advertising, legal expenses and office
supplies. Due to limited time, the invoice, receipts, and
statements for checks issued were not examined.
a
Cesar H. Odio
City Manager
Page 4 of 5
�s
Membership Roster & Fees
86-429-A
IV. EXIT CONFERENCE
An exit conference was held on October 1, 1986 at 2:30 p.m. in the Office
of Segundo Fernandez, President of the Casino project. The following
persons attended the exit conference:
Name Organization
Segundo Fernandez Casino Espanol de la Habana, Inc.
Benjamin Fernandez Casino Espanol de la Habana, Inc.
Harry Weiner Department of Internal Audits & Reviews
Jaime Lopez epartment of Internal Audits & Reviews
There were no objections to the City's findings in the review report.
V. EXHIBITS
Exhibit A - Monthly Balances Per Bank Statements
cc: Juan Portunodo
Ron Williams
Al Armada
Segundo Fernandez
Auditor
V
�1
Cesar H. Odio
City Manager
Months Ending
Feb.
29,
1984
Mar.
31,
1984
Apr.
30,
1994
May 31,
19
84
June
29,
1984
July
31,
1984
Aug.
31,
1984
Sept.
30,
1984
Oct.
31,
1984
Nov.
30,
1984
Dec.
31,
1984
Jan.
31,
1985
Feb.
8,
1985
Mar.
29,
1985
Apr.
29,
1985
May 31,
1985
June
28,
1985
July
28,
1985
Aug.
30,
1985
Sept.
30,
1985
Oct.
31,
1985
Nov.
30,
1985
Dec.
31,
1985
Jan.
31,
1986
Feb.
28,
1986
Mar.
31,
1986
Apr.
30,
1986
May 31,
1986
June
30,
1986
July
31,
1986
Aug.
31,
1986
Sept.
24,
1986
Sept.
30,
1986
Membership Roster A Fees
86-429-A
Page 5 of 5
EXHIBIT A
CASINO ESPANOL DE LA HABANA, INC.
MONTHLY BALANCES PER BANK STATEMENTS
FESRUARY 29, 1984 THROUGH SEPTEMBER 30, 1986
Operational Acct.
Bldg. Acct.
Bldg. Acct. Total
3913715998
391379797
23941-005 Bank
Balances
Balances
Balances Balances
$ 4,389.25
$ -
-
178.87
-
-
729.87
-
-
2, 639.73
50.00
-
865.73
8.56
-
356.29
48.00
-
1,573.39
46.00
-
3,021.27
44.00
-
1,173.49
42.00
-
1,612.13
52.00
-
1,411.26
52.00
-
1, 569.78
52.00
-
1,548.03
52.00
-
1,764.48
6,752.00
-
2,606.48
11,002.00
-
2,906.48
1,924.89
-
1,92 4.89
11,002.00
-
1,708.30
11,002.00
-
2,158.30
13,802.00
-
1,621.78
17,252.00
-
1,224.54
17,252.00
-
1,224.54
20,752.00
-
(444.30)
22,336.00
-
839.70
28,827.00
-
839.70
28,827.00
-
1,522.20
31,127.00
-
4,197.20
31,177.00
-
2,097.20
31,177.00
-
762.25
42,927.00
-
646.73
42,927.00
-
730.73
42,927.00
-
9,101.97
-
-
13,636.97
102,077.10
13,860.00
�•�, 7
C
C
Or MIAM1. rLGp10A
rFICE MEMORANDUM
to Cesar H. Odio °"° September 23, 1986 "`` g5�ae
City Manager
• ��s�teT Summary of Review, of Casino Esr
de le Habana , Inc. , tie�`laQrsh i Vic.
and Fees Paid for the Period
ROOM Sujan S. Chhabra, Di r or. Rcrc�cNcc: February 6, 1a6L through
Department of Inter ai A September 18, 1986
and Reviews
The review disclosed the following Information pertaining to the Casino Esparcl
de la Habana, Inc., membership rester and fees paid, for the period February 8,
l?8",* through September 18, 1986:
1. The second (current) roster was the same as the first roster submitted
to the Ci tv, the rosters were not date:'.
2. Only ninety-seven of the two
hundre,
and eight (208)
membership roster
could be traced to signed
membership applications.
However, there
were 2G-* signed me,t-ersh;p
applications which were
presented to the
audi tor.
3. The pay+nent schedule of membership
fees collected
in the amount of
$61,660 could not be verified
as
correct since copies
of payment
receipts were not available
for the
review. However,
as per the bank
statements, total. deposits
made
were S91,040
(529,38C rem:ins
unexplained).
4. Bank balances of $57,518 as of A.ugust 31, 1986 and September 11, 1:86
could not be verified as correct because the documents requires+ were
not available for the review. As per bank statements, deposits trade
• • were $91,040 and expenditures were 533,522, leaving a balance of
S57,518.
5. Photocopies of two notarized letters from the NCtN'B National Bank to
the Ci ty Commission indicated that there were balances for two
accounts in the amount of $83,557.10 and $7,086. However, there were
no bank account numbers for these accounts in the letters and the
required documents were not available to support these balances.
6. Due to limited time, additional information needed will be obtained at
a later date, if requested.
7. Fieldwork on this review was completed on September 19, 1986
Ref:28/10/E
86-843A
,rs
REVIEW OF CASINO ESPANOL DE LA HABANA, INC.
MEMBERSHIP ROSTER AND FEES PAID
FOR THE PEPIOQ FEBRUARY S. 1984 THROUGH SEPTE14SER 18, 1986
PREPARED BY:
DEPARV.ENT OF INTERNAL AUDITS
AND REVIEWS
clTr Or Mrt-i -L.o olt
OrrICE Or IN` L "'F t. A I )DITS
R1.1111T REAcFT
Cesar H. Odio a"'� September 23, 1986 "i` 862
City Manage
•�"' Review of Casino Espanol de la
Habana, Inc., Fis^,bership Raster
and Fees Paid
"'- Sujan S. Chhabra, Direct '`"�' For the Period February 8, 19C4
Department of Internal ud is brovoh September 18, 1966
and Reviews '„.-
I. DESCRIPTION
A. Pursuant to the request of Ron E. Williams, Director of General
Services Ad"inistration Department, the records of the Casino Espanol
de la Habanz, Inc., were reviewed for the period February 8, 1984
through September 18, 1986, to determine whether or not:
1. The meTCers listed on the first roster were also included on the
current (second) roster subs^itted to the City on September 19,
1926.
2. The names of the me-r.l.-e,s on tre current roster can be traced to
the Individuals' rrecntlersh;p application.
3. The amcunt of fees and dues paid by each member were listed on
the roster.
4. Membershi p fees and dues recorded as pa id , soul d be veri fi ed to :
a. Copies of receipts issued to menbers for each payment.
b. Copies of bank deposit slips for membership fees and
dues deposi ted.
c. Bank balances on bank statements could be reconciled to
totals of men bership fees and dues from payment
receipts and bank deposi t sl ips .
5. Deposits derived from other sources could be verified.
B. Membership fees are shown below:
Mon thl
Membership Fees
Ini�tia_l,
Reg ul a n_ter_
1.
Resident Family
$500.00
$20.00 S10.00
2.
Resident Personal
300.00
15.00 5.00
3.
Non -Resident Family
100.00
10.00 -
4.
Non -Resident Personal
50.00
5.00 -
9
Cesar X. Gaio
City Manager
Page 2 of 4
�' MembershipRoster & F
E6-479 —
The attorney for the Casino protect, Lydia A.
Fernandez, informed
the
City (in a letter
datai Septe-itrer
19, 1986),
that monthly membership
fees will not to
assessed until
such time
as construction of
the
Project cc rnFnCEs.
W,-,,fever, as
rn interim
measure , t.h€ Board
Of
Directors accssce�-
a SiO an6 c
rorthly fee
for resident family
and
reSIdent PErcon2l,
resp,.ctiveIy, Effr-
ctive kucusT.
1, 1ae .
C. The records And dccYTents made tva it abl e for VhE rev i€w ncl vded the
photocores of the mf,JA_rship rcjstEr, mem tA rsl�ip aF,pl iCaticns,
membership pay.<cnts and b?..3nt. stfte:�:ents, Other documents needed to —
verify deF.sits and receipts were not available fcr the rEviEw, such
as copies of receipts for Collections and depoS i t tick€ts for bank
dep:sits. Membership applications submitted did not apply to all of
the roster rie7ters . In addition, books of accounts were not requeste_'
at this time for the review due to the limited time fcr this requested
review. Other inforr;ation wi 11 be suppl ied at a later date, if
needed.
D. Fieldwork on this rc,/icw was ccnpleted on September 19, 1986.
Ii. PRIOR YEA",R'S AUNT FI` DINGS NiD R ECCr�MEND�.TTONS NOT ACTED UPO',
1. This is an initial report.
I11. CURRENT YE.AP.'S AUDIT FINDINGS A',o REC'0WIENDATIONS
A. FINDING fl - The results frcri the examination of the Casino Espanol de
la Habana, Inc. , records provided to the auditor are shown below:
1: Membershio Rosters
a. The current membership roster submitted to the City on _
September 19, 1966 was found to be an exact copy of the
first membership roster submitted to the City. These
rosters were not dated.
b. Oniy ninety-seven nanes of members on the two hundred and
eight (208) memter roster could be traced to copies of
signed membership applications.
e. The schedule of me+nbership payments indicated that only
forty-eight of the two hundred and eight (208) members on
the roster paid initiai fees in the amount of $18,225.
2. Signed Membership Anal ications
a. Two hundred and four (204) signed membership applications
were submitted to the City on September 19, 1986.
b. The schedule of membership payments indicated that two
hundred and two (202) members listed on the applications had
paid their initial fees.
c. In addition, nineteen membership applications that were not
signed were also submitted to the City.
Cesar H. Odio Membership Roster b Fe -
City Manager 86-429
Page 3 of 4
3. Pa;+ent Schedule
A. One hundred and seventy-two (172) members were listed as
having paid the initial fees totaling $61,660.
b. The schedule was not dated and it did not indicate when the
last payment was receive-
C. A copy of the receipt for each membeership payments was not
available for the review. Therefore, these payments could
not be verified as received.
4. Bane; 56:. te!-,.ents
a. NCNE National Bank of Florida Operational �Checklnna) Account
Number Q a-aw_98
Bank statements for the period February 8, 1984 through
August 28, 1986 for the Operational checking account
indicated deposits of 532,671.39 and disbursements of
$31,940.E6, leaving a balance of $7�e, as of Aucust 29,
1 a86.
b. NCNE National Bank of Florida Building Fund - (Checkino)
Bank sta tt-ents for the period Mzy 31, 1984 through
Aucust 2=, 1926, for the Euilding checking account indicated
de;*si is of Sao, 5Cg and di s5ursements of $1, 582, leaving a
balance of S42,927, as of August 29, 1986.
The bank balances of both of the above accounts could not be —
verified as correct because the records required (copies of
customer receipts and deposit tickets or source of revenue)
were not provide -to the auditor.
C. Ocean Sank of Miami Buildina Fund (Checkina) Account Number
I I Q? 177, �' 0
A copy of the bank deposit ticket, with the assigned
membership nunber and the amount that each member paid on
the back of the ticket, for a total of $13,860 was deposited
on September 11. 1986
.; .
I
4
r, lA 10
City Manager
Page 4 of 4
Membership Roster
86-429
S. Summary of deposits and
disbursements as of September 11, 1986,
obtained from bank statements and deposit tickets.
Sank1,na
Activities
Account Tye
Ve os 1 *1.1
U,,sOursems-,ts
Sal ances
Operation
$32, 671 .39
(S31,940. 66)
S 730.73
Suildina
44,509,00
( 1,582.00)
42,927,00
Buildinc (New)
�13160.00
-0-
13,860.00
S91,040.39
,(S332522.66)
$57,517.73
Membership Payments
$6I 660.00
Unexplained Difference
M 73`3'
The source of the $29,220.39 difference between the records of
bank deposits and the Membership payment schedule could not be
deter;nine- fro,, the records available to us.
S. FINNNG 6 - Phctocoples of three notarized letters from the
NC";F
National Sank and Ocean Bank addressed to the City Commission
were
sut,,,itted to tn,s department as proof of the Septerber 18, 1986
bank
balances as of September 16, 1986. However, no account nurters
were
listed on the letters, nor were documents available to support
the
balances of S7,OPG,97 and S83,577.10 indicated on the two
NC11;E
National Bank letters. The Ocean Bank account of $13,860 was verifies
to the copy of the deposit ticket and bank receipt submitted to
the
dud; tor.
C. FINDING ^ • There were no records or supporting documents submitted
to the audi for to indicate that the monthly interim payments of
S:O
and S: had been collected from the members as of this
date
September 19, 1966.
IV. EX!T CONFERENCE
Exit Conference could not take place because of limited tire.
h`W/ so
cc: Juan Portuondo
Ron Williams
Al Armada
Audi for
File
Reader
Ref:281110/E