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HomeMy WebLinkAboutM-86-0812.1Cesar M. Odio F"I "! City Manager 9/25/86 Commission 11"ItRaNc[s: .4 e e t i n g cNCLosu"ss: The matter of the Ci ty's audi t of Casi no Espanol ' s membershi p program is being scheduled on this agenda pursuant to Motion Ito. 86-740, adopted by the City Commission on September 11, 1985. t� Cesar H. Odio °'c" September 23, 1986 Ci tv Manager r" `c. 86 -42 9 •u.�eer Summary of Review of Casino Esrar: de la Habana, Inc., Membership Re and Fees Paid for the Period Sujan S. Chhabra, Dir or nErcncNCES' February 8, 1984 through Department of Inter 1 A i,. September 18, 1986 and Reviews cs. The review disclosed the following information pertaining to the Casino Espanol de la Habana, Inc., membership roster and fees paid, for the period February 8, 19e4' through September 18, 1980: 1. The second (current) roster was the same as the first roster submitted to the City, the rosters were not dated. 2. Only ninety-seven of the two hundred and eight (208) membership roster could be traced to signed membership applications. However, there were 204 signed membership appl ications which were presented to the auditor. 3. The pay+:ient schedule of membership fees collected in the amount of $61,660 could not be verified as correct since copies of pay„menz receipts were not available for the review. However, as per the bank statements, total deposits made were $91,040 ($29,38C remains unexplained). 4. Bank balances of $57, 518 as of August 31, 1986 and September 11, 1986 could not be verified as correct because the documents required were not available for the .review. As per bank statements, deposits made • • were $31,040 and expenditures were $33,522, leaving a balance of $5 7, 518. 5. Photocopies of two notarized letters from the NCNB National Bank to the City 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. is 1, Ref : 28/10/E Igo :,, °"�4 CITY OF MIAMI. f'I.,OPIOA OFricE or imTILMNAA, AUDITS, } AI InIT rlCrtbri - Cesar H. 0dlo ° September 23, 1986 �'I" Sfi-92 City Manager •""' Review of Casino Espanol de la Habana, Inc., Membership Roster and Fees Paid Su jan S. Chhabra, Direct '`"`�' For the Period February 8, 1984 Department of Internal ud is trough September 18, 1986 and Reviews I. DESCRIPTION A. Pursuant to the request of Ron E. Williams, Director of General Services Adrinistration Department, the records of the Casino Espanol de la Habana, Inc., were reviewed for the period February 8, 1984 through September 18, 1986, to determine whether or not: 1. The members listed on the first roster were also included on the current (second) roster submitted to the City on September 19, 1986. 2. The names of the mer:b°rs on the current roster can be traced to the individuals' m&nbershlp application. 3. The amcunt of fees and dues paid by each member were listed on the roster. 4: Membership fees and dues recorded as paid, could be verified to: a. Copies of receipts issued to members 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 membership fees and dues from payment receipts and bank deposit slips. S. Deposits derived from other sources could be verified. Membership fees are shown below: Membership Fees 1. Resident Family 2. Resident Personal 3. Non -Resident Family 4. Non -Resident Personal M,on�thlx Initial Req n e im $500.00 $20.00 $10.00 300.00 15.00 5.00 100.00 10.00 50.00 5.00 - Cesar II. (_lciio �tmbership Roster � F` City Manager � RG„42g ' Page 2 of 4 The attorney for thH Casino proiect, Lydia A, Fernandes, inform�i the Ci ty (in a letter dated Septe��ber 19, 1980), that monthly membership fees will not be assessed until such time as construction of the protect comr�ences. Fbnrever, as an interim measure, the Board of Direetors assessed a �lO and S5 monthly fee for resident family and resident personal, respectively, effective August 1, 198b, C. The records and dec�rnents made available for the review included the photocopies of the membership roster, membership appl ications, membership payments and bank statements. Other documents needed to verify deposits and receipts were not available for the review, such as copies of receipts for collections and deposit tickets for bank deposits. Membership applications submitted did not apply to all or the roster me^�bers. In addition. books of accounts were not requested at this tune for the review due to the limited Lime for this requested review, Other information w111 be supplied at a 1 ater date, i f needed. D. Fieldwork on this review was ccmpl eted on September 19, 1986. II. PRIG Y�R'S AUDIT FI';DI4GS A`ID RECC�iMEN0ATI0NS NOT ACTED UPON 1. This i s an fn1 tial report. III. CJRR:IT YEAR'S AtlDiT FINDINGS A„D RECCMDIENGATIOhS A: FItiuI�;G �1 -Tire resul is frp�i the exa»;ination of the Casino Espanol de la Habana, Inc. , records provided to the audi for are Shown below: 1: Me��`r_rshio Rosters a. Tne current membership roster submitted to the City on September 19, 1986 was found to be an exact copy of the first menbership roster submitted to the City. These .:� rosters were not dated. b. Only ninety-seven Hanes of members on the two hundred and eight (208) member roster could be traced to copies of ' signed membership applications. c. The schedule of membership payments indicated that only forty-eight of the two hundred and eight (208) members on the roster paid initial fees in the amount of 516,225, 2. Signed Membership Appi ications a. Two twndred 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) m�nbers 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. ��'���� �.. A J �. ' `y. Cesar N. Odio Hobership potter b Fe City tanager �'' � 86-429 ' Page 3 of 4 l� t 3. Payment Schedule - Y'.. 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 received. co A copy of the receipt for each membership payments was not available for the review. Therefore, these payments could —> not be verified as received. 4. Bank Statements a. NCNB National Bank of Florida Operational (Checking) Account berr39,1 15-998 Bank statements for the period February 8, 1984 through August 28, 1986 for the Operational checking account indicated deposits of $32,671.39 and disbursements of $31,940.66, leaving a balance of 1730.73, as of August 29, 1986. b. NCNE National Bank o; Florida _Bui1_dinoFund_- (Checking) c�cou^t Nun er 3G 371-797 Bank statements for the period May 31, 1984 through Aucust 29, 1986, for the Building checking account indicated deposits of $44,509 and disbursements of $1,582, leaving a balance of $42,927, as of August 29, 1986. r 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 provided to the auditor. e. Ocean Bank of Miami Building Fund (Checking) Account Number 941005 _ 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. V" �AA VA4,64ve"!7�'.1." coo Sk y.. 1 wos�r• ►;- v+iia Membership Roster $ =- _`. City Manager 86-429 Page 4 of 4 5. Summary of deposits and disbursements as of September 11, 1986, obtained from bank statements and deposit tickets. t Banking Activities Account Tv2e Deposits Disbursements Balances Operation $32,671.39 (S31,940,66) $ 730.73 Building 44,509.00 ( 1,582.00) _ 42,927,00 Building (New) 13L860.00 -0- 13,860.00 $91,040.39 S33 522.66) $57,517.73 Membership Payments $61 660.00 Unexplained Difference The source of the $29,380.39 difference between the records of bank deposits and the membership payment schedule could not be determine from the records available to us. B. FINDING #2 - Photocopies o' three notarized letters from the NCNB National Bank and Ocean Bank addressed to the City Commission were submitted to this department as proof of the September 18, 1986 bank balances as of September 16, 1986. However, no account n=bers were listed on the letters, nor were documents available to support the balances of 57,086,97 and 583,577.10 indicated on the two NCNB National Bank letters. The Ocean Bank account of $13,860 was verified to the copy of the deposit ticket and bank receipt submitted to the auditor. C. FINDING #;; - There were no records or supporting documents suL--nitted to the auditor to indicate that the monthly interim payments of S10 and SE had been collected fron the members as of this date September 19, 1986. I V. EXIT CONFERENCE . Exit Conference could not take place because of limited time. M'd/ so cc: Juan Portuondo Ron Williams Al Armada Audi for File Reader Ref : 28 n on L..