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Home My WebLink About10-00307 3-11-2010 Submittal-Management LetterCITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY, CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY, AND CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY (COMPONENT UNITS OF THE CITY OF MIAMI, FLORIDA) Management Letter in Accordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 2009 ' ten tt. Itttit4 'tt'd J.. tV1, tat,/ SKJ JACOMENO�� CONTANYnLLP �� ,~=~�~°�,~=�~'~~,�=~,�~��=°°=,ns=,~~~s Management Letter inAccordance with the Rules of the Auditor General of the State of Florida Tothe Board ofDirectors ofthe City ofMiami Southeast OvortownPark West Redevelopment Agency, City of Miami Omni Community Redevelopment Agency, and City of Miami Midtown Community Redevelopment Agency We have audited the financial statements of the City o/ Miami Southeast Overtown Park West Redevelopment Agency, City of Miami Omni Community Redevelopment Agency. and City ofMiami Midtown Community Redevelopment Agency (collectively referred to as ~the Agencies"), Component Units of the City of yN|ami. Florida, as of and for the fiscal year ended Saptembar30. 2000 and have issued our reports thereon dated November 25.%0O9. VVaconducted our audits in accordance with auditing standards generally accepted in the United Sbshss of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, We have issued our Independent Auditors' Reports on |ntonnm| Control over Financial Reporting and on Compliance and Other Matters. Disclosures in those napodo, which are dated Novembar35. 2009. should be considered in conjunction with this management letter. Additionally, our audits were conducted inaccordance viththeprovisionoofCh 1D.55O.Rules ofthe Auditor General, which govern the conduct of local governmental anUh/ audits performed in the State of Florida and, unless otherwise required tn be reported in the report on compliance and internal controls or schedule of findings and questioned costs, this letter is required to include the following information. � Section 10.554(1)(l)1, Rules mfthe Auditor General, requires that wedetermine whether nrnot corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report not otherwise addressed in the auditor's report pursuant to Section 10.557(3)(b)2.. Rules ofthe Auditor General. There were no significant findings and recommendations made inthe preceding annual financial audit napnrL � Section 10.554(l)(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 audits, we determined that the Agencies 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 buimprove financial management. Current year recommendations are included at Appendix A to this letter. � Section 10.554(1)(i)4, Rules of the Auditor Gamsna|, requires that we address violations of contracts cvgrant agreements, orabuse that have an effect on the financial statement that is less than material but more than inconsequential. |nconnection with our audits, we noted no such violations . Submitted into the pmh&io record inconnection with items JLt_mn 1 Priscilla A' Thompson City Clerk ° Section 10,554(1)(i)5, Rules of the Auditor Generm, nequires, based on professional judgment, the reporting of the following matters that have an inconsequential to the determination effect on the financial statement, considering both quantitative and qualitative factors: (a) violations of provisions of uun1nacho or grant agvammentu, froud, illegal ads, or abuse; and (b) uon1m| deficiencies that are not significant deficiencies. In connection with our audits, we did not have any such findings. � Section 10.554(1)(0S, Rules ofthe Auditor General, my4uiraa that the name nvofficial title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management |atter, unless disclosed in the notes hothe financial statements. Such disclosures are made in note 1 tothe Agencies' financial statements. = Section 10.554(1)(U7.a, Rules ofthe Auditor General, requires 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 Stadutea, and identification of the specific condition(s) met. In connection with our audits, we determined that the Agencies did not meet any of the conditions described in Section 219.503(1), Florida Statutes. ° Section 10.554(1)(07.b, Rules of the Auditor General, requires that we determine whether the annual financial reports for the Agencies for the fiscal year ended September 30. 3009. filed with the Florida Department ofFinancial Services pursuant to Section 218.32(1)(a), Florida Statuh*s, is in agreement with the annual financial audit report for the fiscal year ended September 30. 2009, The Agencies do not file a separate report with the State of Florida Department of Financial Services. The financial operations ofthe Agencies are included inthe basic financial statements ofthe City nfMiami, Florida for the year ended September 3U.2OUQ. � Sections 10.554(1)(i)7.c. and 10.555(7). Rules of the Auditor Genena|, require that we apply financial condition assessment procedures. In connection with our audits, we applied financial condition assessment procedures. It is management's responsibility to monitor the entity's financial oondition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. This management letter is intended solely for the information and use of the board of directors, management of the Agenoeo, and the State of Florida Office of the Auditor General, and is not intended tobeand should not beused byanyone other than these specified parties. Submitted into the public record inconnection with items 41 on 3'11'10 ' Priscilla A, Thompson City Clerk 2 Appendix A CITY OFMIAMUSOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY, CITY OFK8|AM|QMN|COMMUNITY REDEVELOPMENT AGENCY, AND CITY OF&NA|KMUMIDTOWN COMMUNITY REDEVELOPMENT AGENCY (COMPONENT UNITS OFTHE CITY OFMlA80l,FLORIDA) Management Letter |nAccordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 2009 Current Year's Recommendations 20094GASB Statement No. S4 CriterialSpecific Requirements In February 2009. the GASB issued Statement No, 54, Fund Balance Reporting and Governmental Fund Type Definitions. The GASBdeve|nped Statement No. 54 to address the diversity of practice and the resulting lack of consistency that had evolved in fund balance reporting. To reduce confusion, the new standard establishes a hierarchy of fund balance classifications based primarily on the extent to which o government is bound to observe spending constraints imposed upon how resources reported in governmental funds may beused. Statement No. 54 distinguishes fund balance between amounts that are considered nonopmndabkaand other amounts that are classified based on the relative strength of the constraints that control the purposes for which specific amounts can be spent. Beginning with the most binding oonsUainty, fund balance amounts will bereported inthe following classifications: ° Restricted —amounts constrained by external partims, constitutional provision, uronab�ing legislation. ° Committed — amounts constrained by a government using its highest level of decision -making authority. ° Assigned — amounts agovernment intends touse for aparticular purpose. ° Unassigned — unconstrained amounts will bereported inthe general fund. The new standard also clarifies the definitions of individual governmental fund types. |tinterprets certain terms within the definition of special revenue fund typeo, while further clarifying the debt service and capital projects fund type definitions. GASB Statement No. 54 in effective for the Agencies' financial statement period ending September 30. 2011. with earlier implementation encouraged. However, as the Agencies are component units of the City of N1iomi. Florida, if the City makes the decision to early implement GASB Statement No. 54. the Agencies will berequired tnearly implement aowell. Condition Found Not applicable. Perspective Not applicable. Effect Not applicable, Submitted into the public record iqconnection with items #1 on 3-11-10 . Priscilla A. Thompson City Clerk Appendix A CITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY, CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY, AND CITY OF MAIMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY (COMPONENT UNITS OF THE CITY OF MIAMI, FLORIDA) Management Letter in Accordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 2009 Current Year's Recommendations Recommendation We recommend that management become familiar with GASB Statement No. 54, and be prepared to implement this pronouncement for the fiscal year ending September 30, 2011. However, if the City decides to implement GASB Statement No. 54 earlier than fiscal year ending September 30, 2011, the Agencies will be required to early implement as well. Management's Response Management acknowledges the recommendation made. We will discuss this with the City and be prepared to implement GASB Statement No. 54 when the City does. Submitted into the public record in connection with items #1 on 3-11-10 . Priscilla A. Thompson City Clerk