HomeMy WebLinkAbout14-00188 Report-MCRA External Audit for FY 2013CITY OF MIAMI MIDTOWN COMMUNITY
REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Basic Financial Statements
September 30, 2013
(With Independent Auditor's Report Thereon)
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
September 30, 2013
Table of Contents
Independent Auditor's Report
Management's Discussion and Analysis (Required Supplementary Information)
Pages
1-2
3-5
Basic Financial Statements:
Governmental Fund Balance Sheet/Statement of Net Position 6
Statement of Governmental Fund Revenues, Expenditures, and Changes
in Fund Balance/Statement of Activities 7
Notes to Basic Financial Statements 8-11
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule
Notes to Required Supplementary Information
Other Reports:
Independent Auditor's 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
Management letter in Accordance with the Rules of the Auditor General of the
State of Florida
12
13
14-15
16-17
Independent Auditor's Report
SKJT
CERTIFIED PUBLIC ACCOUNTANT , TANTS
Sanson,1Chne, Jacomino, Tandoc & Gamarra, LLP
5805 Blue Lagoon Drive I Suite 220 I Miami, FL 33126
Tel: (305) 269-8633 I Fax: (305) 265-0652 f www.skjtg-cpa.com
Independent Auditor's Report
The Board of Directors
City of Miami Midtown Community
Redevelopment Agency:
Report on the Financial Statements
We have audited the accompanying basic financial statements of the governmental activities and the
major fund of the City of Miami Midtown Community Redevelopment Agency (the Agency), a
component unit of the City of Miami, Florida (the City), as of and for the year ended September 30, 2013,
and the related notes to the financial statements, which collectively comprise the Agency's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and the major fund of the Agency as of
September 30, 2013, and the respective changes in fmancial position thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
1
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and budgetary comparison information on pages 3 through 5 and 11 through 12
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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 5,
2014 on our consideration of the Agency's internal control over financial reporting and 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 the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Agency's internal control over
financial reporting.
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February 5, 2014
2
Management's Discussion and Analysis
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2013
This section of the City of Miami Midtown Community Redevelopment Agency (the Agency) financial
statement presents management's analysis of the financial performance during the fiscal year that ended
September 30, 2013. This discussion addresses whether or not the Agency as a whole is better off or worse
off as a result of this year's activities.
Overview
The Agency was established in 2005 by the City of Miami, Florida (the City) under the provisions of Section
163.330, Florida Statutes. The purpose of the Agency is to eliminate blight and slum conditions within the
redevelopment area of the agency pursuant to the redevelopment plans of the Agency for new residential and
commercial activity of the Midtown area.
The Agency's primary source of revenue is tax increment funds. This revenue is computed by applying the
operating tax rate for the City and the County, multiplied by the increased value of property located within
the boundaries of the redevelopment areas of the Agency, over the base property value, minus 5%. Both the
City and the County are required to fund this amount annually without regard to tax collections or other
obligations.
On June 30, 2005, the Agency entered into an Interlocal Cooperation Agreement, as amended, with the City,
Miami -Dade County (the County), and the Midtown Community Development District (the "District"),
whereby tax increment revenues collected by the City and County would be paid to Midtown and used in
accordance with the approved budget and redevelopment plan and terms and conditions of the InterlocaI
Agreement. In accordance with the redevelopment plan, the Agency has pledged the tax increments
revenues received from the City and County to the repayment of the debt service of bonds issued by the
District, which bonds were issued on. July 28, 2004. Any shortfalls in the debt service are to be paid by the
District, not the Agency.
Further, the Agency's policy is set by a board of directors comprised of the five members of the City
commission and are separate, distinct and independent from the governing body of the City; and it's
management plan is executed by a small professional staff led by its executive director.
Financial Highlights
At the close of the current fiscal year, the Agency has a fund balance/net position balance of $0, which is the
same as the prior year.
The Agency did not incur any debt during the current fiscal year.
Overview to the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Agency's basic financial
statements. The Agency's basic financial statements are comprised of three components:
■ Government -wide financial statements
• Fund financial statements
• Notes to the basic financial statements
In addition, the Agency reports, as required supplementary information, a budget to actual comparison and
notes to the required supplementary information.
3
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2013
Overview to the Financial Statements (continued)
The Agency is considered a special purpose government engaged in a single governmental activity, thus the
related government -wide and fund financial statements are included as a combined presentation in the
Governmental Fund Balance Sheet/Statement of Net Position and the Statement of Governmental Fund
Revenues, Expenditures, and Changes in Fund Balance/Statement of Activities. Accordingly, there are no
reconciling items between these two statements, which may be found on pages 6 and 7 of this report.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the
Agency's finances, in a manner similar to a private -sector business (i.e. economic resources and
measurement focus).
The statement of net position presents information on all of the Agency's assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position may
serve as a useful indicator of whether the financial position of the Agency is improving or deteriorating.
The statement of activities presents information showing how the Agency's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to
the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods.
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 Agency, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance related legal requirements. The Agency
only has one governmental fund; the special revenue fund.
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-tenn inflows and outflows of expendable
resources, as well as on balances of expendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near -term financing requirements.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements. The notes to the basic financial statements can be found on
pages 8 to 10 of this report.
Budgetary Highlights
A budgetary comparison schedule has been provided for the special revenue fund to demonstrate compliance
with this budget. The budgetary comparison schedule can be found on page 11 of this report.
The significant change between the original budget and final budget was to decrease the amount budgeted for
the tax increment revenues and the corresponding remittance of the tax increment revenues to the Midtown
Community Development District.
4
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2013
Financial Analysis
Government-Wide/Individual Fund Analysis
Our analysis of the financial statements of the Agency begins below. The Statement of Net Position and the
Statement of Activities report information about the Agency's activities that will help answer questions about
the position of the Agency. A comparative analysis is provided below.
Summary of Net Position
9/30/13 9/30/12
Total assets $ $
Total liabilities
Total net position
Summary of Changes in Net Position
9/30/13 9/30/12
Expenditures:
General government $ 28,215 $ 14,142
Community redevelopment 2,793,222 1,622,585
Revenues:
Tax increment
Change in net position
Net position, beg. of year
Net position, end of year $ - $
2,821,437 1,636,727
• Community redevelopment expenditures increased in the current year as a result of the increase in the
amount of the remittance of tax increment revenues paid to the Midtown Community Development
District in accordance with the applicable interlocal agreement.
• Tax increment revenues increased from the prior year due to the increase in the annual pay out from the
City and the County.
Requests for Information
This financial report is designed to provide a general overview of the Agency's finances. Questions
concerning any of the information provided in this report or requests for additional information should be
addressed to the Executive Director, 1401 North Miami Avenue, Miami, Florida 33136.
5
Basic Financial Statements
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Governmental Fund Balance Sheet/Statement of Net Position
September 30, 2013
Assets
Equity in pooled cash
Liabilities
Accounts payable
Unassigned fund balance/unrestricted net position
Special Statement of
revenue fund Adjustments net position
The accompanying notes are an integral part of the basic financial statements.
6
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Statement of Governmental Fund Revenues, Expenditures,
and Changes in Fund Balance/Statement of Activities
Year ended September 30, 2013
Special Statement of
revenue fund Adjustments activities
Expenditures/expenses:
General government $ 28,215 28,215
Community redevelopment 2,793,222 2,793,222
Total expenditures/expenses 2,821,437 2,821,437
General revenues:
Tax increment revenue
Total general revenues
Excess of revenues over expenditures/change in net position
Fund balance/net position - beginning of the year
Fund balance/net position - end of the year
2,821,437 2,821,437
2,821,437 2,821,437
The accompanying notes are an integral part of the basic financial statements.
7
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
1. Summary of Significant Accounting Policies
This summary of the City of Miami Midtown Community Redevelopment Agency (the Agency)
significant accounting policies is presented to assist the reader in interpreting the basic financial
statements. The policies are considered essential and should be read in conjunction with the basic
financial statements.
The accounting policies of the Agency conform to accounting principles generally accepted in the United
States of America applicable 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 following is a summary of the more significant policies:
A. Reporting Entity
The Agency was established in 2005 by the City of Miami, Florida (the City) under the provisions of
Section 163, Florida Statutes. The purpose of the Agency is to eliminate blight and slum conditions
within the redevelopment area of the agency pursuant to the redevelopment plans of the Agency for new
residential and commercial activity of the Midtown area. The board of directors of the Agency are
comprised of the five members of the City commission and are separate, distinct and independent from
the governing body of the City.
On June 30, 2005, the Agency entered into an Interlocal Cooperation Agreement, as amended, with the
City, Miami -Dade County (the County), and the Midtown Community Development District (the
"District"), whereby tax increment revenues collected by the City and County would be paid to Midtown
and used in accordance with the approved budget and redevelopment plan and terms and conditions of
the Interlocal Agreement. In accordance with the redevelopment plan, the Agency has pledged the tax
increments revenues received from the City and County to the repayment of the debt service of bonds
issued by the District, which bonds were issued on July 28, 2004. Any shortfalls in the debt service are
to be paid by the District, not the Agency. For financial reporting purposes, the Agency is a component
unit of the City and is thus included in the City's comprehensive annual financial report as a blended
component unit.
B. Government -wide Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the financial activities of the Agency. 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 Agency
does not have any business -type activities and has only one governmental activity. The accounts of the
Agency are reported as a special revenue fund. The special revenue fund is the Agency's only fund and
thus the Agency's only major fund.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues, if any, include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
8
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The govemment-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows.
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
Agency considers revenues available if they are collected within 60 days of the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all tax increment revenues, net of distribution remittances to the
District.
D. Equity in Pooled Cash
The Agency's cash is pooled together with the City's cash. All such cash is reflected as equity in pooled
cash on the Agency's governmental fund balance sheet / statement of net position.
E. Fund Equity / Net Position
Fund equity
GASB Statement Nov 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes
criteria for classifying fund balances into specifically defined classifications and clarifies definitions for
governmental fund types. Fund balances for governmental funds are reported in classifications that
comprise a hierarchy based primarily on the extent to which the government is bound to honor
constraints on the specific purposes for which amounts in those funds can be spent, as follows:
■ Nonspendable fund balance - amounts that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact.
• Restricted fund balance - amounts that are restricted to specific purposes when constraints placed on
the use of resources are either by (a) externally imposed by creditors (such as debt covenants),
grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislations.
• Committed fund balance - amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the government's highest level of decision making authority.
• Assigned fund balance - amounts that are constrained by the government's intent to be used for
specific purposes, but are neither restricted nor committed.
■ Unassigned fund balance - amounts that have not been assigned to other funds and that have not been
restricted, committed, or assigned to specific purpose within the general fund.
When both restricted and unrestricted amounts are available for use, it is the Agency's practice to use
restricted resources first. Additionally, the Agency would first use committed, then assigned, and lastly
unassigned amounts of unrestricted fund balance.
9
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
E. Fund Equity / Net Position (continued)
Net position
The government -wide financial statements utilize a net position presentation. Net position can be
categorized as net investment in capital assets, restricted, or unrestricted. The first category consists of
capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, mortgages,
notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those
assets. Restricted net position results when constraints placed on the use of the net position are either
externally imposed by creditors, grantors, contributors and the like, or imposed by law through
constitutional provisions or enabling legislation. Unrestricted net position consists of the remaining net
position that does not meet the previously listed criteria.
F. Tax Increment Revenues
The Agency's primary source of revenue is tax increment funds. This revenue is computed by applying
the operating tax rate for the City and the County, multiplied by the increased value of property located
within the boundaries of the redevelopment areas of the Agency, over the base property value, minus
5%. Both the City and the County are required to fund this amount annually without regard to tax
collections or other obligations. As noted in note 1(A) above, in accordance with the redevelopment plan
of the Agency, the Agency has pledged the tax increments revenues received from the City and County
to the repayment of the debt service of bonds issued by the District, which bonds were issued on July 28,
2004. Any shortfalls in the debt service are to be paid by the District, not the Agency. For the fiscal year
ended September 30, 2013, the Agency remitted a total of $2,793,222 to the District.
G. Use of Estimates
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 the
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.
2. Cash and Cash Equivalents
As of September 30, 2013 the Agency has no balance in equity in pooled cash. The Agency's fund
participates in the City's pool on a dollar equivalent and daily transaction basis. Interest income (which
includes unrealized gains and losses) is distributed monthly based on a monthly average balance.
Custodial Credit Risk is the risk that in the event of a bank failure, the Agency's deposits may not be
returned to it. In addition to insurance provided by the Federal Deposit Insurance Corporation (FDIC),
deposits are held in banking institutions approved by the State of Florida, State Treasurer to hold public
funds. Under the Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", the State
Treasurer requires all qualified public depositories to deposit with the Treasurer or another banking
institution eligible collateral. In the event of a failure of a qualified public depository, the remaining
public depositories would be responsible for covering any resulting losses.
10
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
3. New Pronouncements Issued
The following pronouncements were implemented in the current year financial statements of the Agency:
• GASB Statement 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position - this statement improves financial reporting by standardizing the
presentation of deferred outflows of resources and deferred inflows of resources and their effects on a
government's net position.
The following pronouncements have recently been issued by the GASB, but will not have a material impact
on future financial statements of the Agency:
• GASB Statement 65, Items Previously Reported as Assets and Liabilities, which will be effective for
the fiscal year ending September 30, 2014.
• GASB Statement 66, Technical Corrections - 2012 - an amendment of GASB Statements No. 10 and
No. 62, which will be effective for the fiscal year ending September 30, 2014.
• GASB Statement 67, Financial Reporting for Pension Plans - an amendment of GASB Statement No.
25, which will be effective for the fiscal year ending September 30, 2014.
• GASB Statement 68, Accounting and Financial Reporting for Pensions- an amendment of GASB
Statement No. 27, which will be effective for the fiscal year ending September 30, 2015.
• GASB Statement 69, Government Combinations and Disposals of Government Operations, which will
be effective for the fiscal year ending September 30, 2015.
• GASB Statement 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees,
which will be effective for the fiscal year ending September 30, 2014.
• GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement
Date, which will be effective for the fiscal year ending September 30, 2015.
4. Subsequent events
The Agency evaluated subsequent events through January 27, 2014, the date the financial statements
were available to be issued.
11
Required Supplementary Information
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Budgetary Comparison Schedule
(Required Supplementary Information - Unaudited)
Revenues:
Tax increment revenue
Total revenues
For the year ended September 30, 2013
Variance with
Canal budget -
Budgeted amounts positive
Original Final Actual (negative)
$ 2,880,522 2,821,437 2,821,437
2,880,522 2,82I,437 2,821,437
Expenditures:
Current:
General government 28,805 28,215 28,215
Community redevelopment 2,851,717 2,793,222 2,793,222
Total expenditures 2,880,522 2,821,437 2,821,437
Excess of revenues over expenditures
Other financing uses:
Net (budget reserve) carryover fund balance
Total other financing uses
Net change in fund balance $
Fund balance - beginning of the year
Fund balance - end of the year $
The notes to the required supplementary information is an integral part of this schedule.
12
CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Required Supplementary Information
September 30, 2013
1, Budgetary Policy
As set forth in the Interlocal Cooperation Agreement between the Agency and the City, the Agency
adopts an annual budget for the Special Revenue Fund. The budget is adopted on a basis consistent with
U.S. generally accepted accounting principles. Budgetary control is maintained at the fund level.
13
Other Reports
SKJT �
CERTIFIED PUBLFC ACCOUNTANTS ,4SULFANTS
Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP
5805 Blue Lagoon Drive I Suite 220 I Miami, Ft_ 33126
Tel: (305) 269-8633 I Fax: (305) 265-0652 I www.skjtg-cpa.com
Independent Auditor's 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
The Board of Directors
City of Miami Midtown Community
Redevelopment Agency:
We have audited, in accordance with the 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, the financial statements of the governmental
activities and the major fund of the City of Miami Midtown Community Redevelopment Agency (the
Agency) as of and for the year ended September 30, 2013, and the related notes to the financial statements,.
which collectively comprise the Agency's basic financial statements, and have issued our report thereon
dated February 5, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Agency's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances 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 Agency's internal control. Accordingly, we do
not express an opinion on the effectiveness of the Agency's internal control.
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. 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.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified,
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency's financial statements are free from
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 no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
14
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
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February 5, 2014
15
S
CERTIFIED PUBLIC
'
ACCOUNTANTS 8 CONSULTANTS
Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP
5805 Blue Lagoon Drive Suite 220 Miami, FL 33126
Tel: (305) 269-8633 Fax: (305) 265-0652 www.skjtg-cpa.com
Management Letter in Accordance with the
Rules of the Auditor General of the State of Florida
The Board of Directors
City of Miami Midtown Community
Redevelopment Agency:
We have audited the financial statements of the City of Miami Midtown Community Redevelopment
Agency (the Agency), a Component Unit of the City of Miami, Florida, as of and for the fiscal year ended
September 30, 2013, and have issued our report thereon dated February 5, 2014.
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 and Chapter 10.550, Rules of the Florida Auditor
General. We have issued our Independent Auditors' Reports on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in
Accordance with Government Auditing Standards. Disclosures in those reports, which are dated February
5, 2014, should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of 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 are not included in the aforementioned
auditor's reports:
• Section 10.554(1)(i) I ., 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 not otherwise addressed in the auditor's report pursuant to Section
10.557(3)(b)2., Rules of the Auditor General. Corrective actions have been taken to address
findings and recommendation made in the preceding annual financial audit report.
■ 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 current year audit, we determined that the Agency 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 current year
audit, we did not have any such recommendations.
• Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address noncompliance with
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
which warrants the attention of those charged with governance. In connection with our current year
audit, we did not have any such findings.
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■ Section 10.554(1)(i)5., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements. Such
disclosures are made in note 1 to the Agency's financial statements.
• Section 10.554(1)(i)6.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 current year audit, we determined that the Agency did not meet any of the
conditions described in Section 218.503(1), Florida Statutes.
• Section 10.554(1)(i)6.b., Rules of the Auditor General, requires that we determine whether the
annual financial reports for the Agency for the fiscal year ended September 30, 2013, 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 the fiscal year ended September 30, 2013. The
Agency does not file a separate report with the State of Florida Department of Financial Services.
The financial operations of the Agency are included in the basic financial statements of the City of
Miami, Florida for the year ended September 30, 2013.
• Sections 10.554(1)(i)6.c. and 10.556(7), Rules of the Auditor General, require that we apply
financial condition assessment procedures. In connection with our current year audit, we applied
financial condition assessment procedures. It is management's responsibility to monitor the entity'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.
This management letter is intended solely for the information and use of the board of directors,
management of the Agency, and the State of Florida Office of the Auditor General, and is not intended to
be and should not be used by anyone other than these specified parties.
,Itti 114, frett4)n4 \Lot& )
February 5, 2014
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