HomeMy WebLinkAbout14-00195 Report-OMNI External Audit for FY 2013CITY OF MIAMI OMNI 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 OMNI 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
3-8
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position 9
Statement of Activities 10
Fund Financial Statements:
Balance Sheet — Governmental Funds 11
Statement of Revenues, Expenditures, and Changes in Fund Balances —
Governmental Funds 12
Notes to Basic Financial Statements 13-19
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule — General Fund 20
Budgetary Comparison Schedule — Special Revenue Fund 21
Note to Required Supplementary Information 22
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
23-24
25-26
Independent Auditor's Report
SKJT i
CERIIiIED PUBLIC ACCOUNTANT:. CONSULTANTS
Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP
5805 Blue Lagoon Drive I Suite 220 I Miami, FL 33126
Tel: (305) 269-8633 I Fax: (305) 265-0652 I www.skjtg-cpa.com
Independent Auditor's Report
The Board of Directors
City of Miami Omni Community
Redevelopment Agency:
Report on the Financial Statements
We have audited the accompanying basic financial statements of the governmental activities and each
major fund of the City of Miami Omni 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 each major fund of the Agency as of
September 30, 2013, and the respective changes in financial 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 8 and 19 through 21
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.
February 5, 2014
2
Management's Discussion and Analysis
CITY OF MIAMI OMNI 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 Omni 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 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 in
the Omni 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 24, 1996, the City and County entered into an Interlocal Cooperation Agreement with the Agency,
whereby the Agency will receive over a three year period, commencing on the date of the Agreement, a total
of $1.2 million of tax increment revenue contributed by the City and County. If within the three-year period
the Agency receives more than $1.2 million in tax increment revenue, the excess shall be remitted to the
County for the Performing Arts Center Project. Thereafter, the Agency shall remit to the County tax
increment funds received up to, but no more than $1.43 million per year. The obligation to pay the $1.43
million each year shall cease at such time that the County has no Performing Arts Center construction bonds
outstanding.
On December 31, 2007, the City and County entered into an Interlocal Agreement with the Agency, whereby
in addition to the $1.43 million per year described above for the Performing Arts Center project, the Agency
shall remit on March 31, 2010 and every March 31 s' thereafter ending on March 31, 2012 an amount equal to
35% of the amount by which the increment revenue exceeds $1.43 million, and on March 31, 2013 and every
March 31' thereafter until March 31, 2027, including any additional time extensions beyond March 31, 2027,
an amount equal to the greater of $1.43 million or 35% of the increment revenue, provided that the mounts
remitted by the Agency do not exceed $25 million in any fiscal year.
On August 6, 2007, the City, County and The Children's Trust (the Trust) entered into an Interlocal
Agreement with the Agency, whereby the Agency would receive from the Trust, on an annual basis, tax
increment revenues derived from the imposition of a half -mil tax levied by the Trust against real property
located within the redevelopment district (referred to as Trust revenues). The agency agreed to use the Trust
revenues for debt service on, and other obligations relating to, existing debts of the Agency only after all
other available tax increment revenues have been exhausted for such purpose, and to remit to the Trust on the
last day of the Agency's fiscal year, all of the Trust revenues that are not needed for debt service on, or other
obligations relating to, existing debts of 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.
3
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2013
Financial Highlights
The assets of the Agency exceeded its liabilities at the close of its most recent fiscal year by $24,030,013. Of
this amount, $5,040,403 was invested in capital assets net of related debt, resulting in an excess of
$18,989,610 (unrestricted net assets) available to meet the Agency's obligations to citizens in the Omni area.
At the close of the current fiscal year, the Agency's governmental funds reported combined ending fund
balances of $19,060,639, an decrease of $264,546 in comparison with the prior 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.
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 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. Both of the
funds of the Agency are categorized as governmental funds.
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 -term 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.
4
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2013
Because the focus of governmental funds is narrower than that of the government -wide financial statements,
it is useful to compare the information presented for governmental funds with similar information presented
for governmental activities in the government -wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near -term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The Agency maintains two individual governmental funds during fiscal year 2013. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General Fund and the Special Revenue Fund.
The basic governmental fund financial statements can be found on pages 11 and 12 of this report.
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 13 to 19 of this report.
Budgetary Highlights
The Agency adopts an annual budget on an individual fund basis. Budgetary comparison schedules have
been provided for the General Fund and Special Revenue Fund to demonstrate compliance with the budget
on pages 20 and 21, respectively, of this report.
There were no significant variances between the original budget and the final budget for both the General
Fund and Special Revenue Fund.
The significant variance between the final budget and actual amount reported for general government
expenditures in the General Fund is a direct result of the amounts contributed to the General Fund by the
Special Revenue Fund and the City of Miami Midtown Community Redevelopment Agency.
The significant variance between the final budget and the actual amount reported for tax increment revenue
in the Special Revenue Fund was a result of the higher than originally anticipated payout from the City and
County.
The significant variance between the final budget and actual amount reported for community redevelopment
expenditures in the Special Revenue Fund is a result of redevelopment projects that either did not commence
yet or were not yet completed as planned.
Financial Analysis
Government -Wide 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.
5
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2013
Table A-1
Summary of Net Position
Current assets
Capital assets, net
Total assets
Total liabilities
Fiscal Year Fiscal Year
2013 2012
$ 20,475,511 $19,899,909
5,040,403 2,115,610
25,515,914 22,015,519
1,485,901 574,724
Net position:
Net investment in capital assets 5,040,403 2,115,610
Unrestricted 18,989,610 19,325,185
Total net position $ 24,030,013 $ 21,440,795
■ Total assets increased from the prior year as a result of the overall increase in capital assets. As a result
of the move to the new office, the Agency capitalized certain capital assets during the fiscal year.
• Total liabilities increased from the prior year as a result of the general increase in accounts payable, as
well as the increase in the amounts due to The Children's Trust at year end.
Total net position increased from the prior year as a result of the overall net increase in operations.
Table A-2
Summary of Changes in Net Position
Fiscal Year Fiscal Year
2013 2012
Revenues:
Intergovernmental:
Operating
General revenues:
Tax increment revenue
Interest revenue
Net unrealized loss in fair value of investments
Other
Total revenues
Expenses:
General government
Community redevelopment
Total expenses and transfers
Change in net position
Net position, beginning of year
Net position, end of year
6
$ 1,449,406 $
10,030,533
27,973
(79,224)
20,700
11,449.388
1,170,484
7,689,686
8,860,170
2,589,218
21,440,795
$ 24,030,013
4,794,707
36,804
4,100
4,835,611
631,780
13.575,347
14,207..127
(9,371,516)
30.812.311
$ 21,440,795
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2013
• Intergovernmental revenue increased in the current year as a result of the increase in the amounts
contributed from the special revenue funds of City of Miami Omni and Midtown Community
Redevelopment Agencies to the general fund, as well as funds provided by the City for the Baywalk at
Bicentennial Park project.
• Tax increment revenue increased in the current year as a result of the increase in the payout by the City
and the County.
• General government expenditures increased from the prior year as a result of the increase in the amounts
contributed to the General Fund, which administers the general operating function for the City of Miami
Omni and Midtown community redevelopment agencies.
• Community redevelopment expenditures decreased in the current year as a result of the decrease in
project activity from the prior year.
Individual Fund Analysis
The fund balance for the General Fund increased from $0 at September 30, 2012 to $169,977 at September
30, 2013. Fund balance for the Special Revenue Fund decreased from $19,325,185 at September 30, 2012 to
$18,890,662 at September 30, 2013.
Since the Agency only has governmental funds/activities, the changes in fund balance also explain the
increases in net position. The following are key factors in the changes in fund balances for 2013:
■ The increase in fund balance in the General Fund was due to its creation during fiscal year 2013. In
prior year's the General Fund was part of the City of Miami Southeast Overtown Park West
Community Redevelopment Agency.
■ The decrease in fund balance in the Special Revenue Fund was mainly due to the construction costs
related to the new office building and to the increase in the amount contributed to the General Fund.
Capital Assets
As of September 30, 2013, the Agency's investment in capital assets, net of accumulated depreciation,
amounted to $5,040,403, increasing from $2,115,610 as of September 30, 2012.
Summary of Capital Assets
(Net of Accumulated Depreciation)
Fiscal Year Fiscal Year
2013 2012
Land $ 823,039 $ 823,039
Infrastructure 4,205,630 1,292,571
Furniture and equipment 11,734 -
Total capital assets $ 5,040,403 $ 2,1155,610
Additional capital asset information can be found on page 17 of this report.
7
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Management's Discussion and Analysis - Unaudited
September 30, 2013
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.
8
Basic Financial Statements
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Statement of Net Position
September 30, 2013
Governmental
Activities
Assets
Equity in pooled cash $ 19,643,273
Interest receivable 7,158
Due from other government 825,080
Capital assets (net of accumulated depreciation)
Land 823,039
Infrastructure 4,205,630
Furniture and equipment 11,734
Total assets 25,515,914
Liabilities
Accounts payable 984,823
Due to other government 430,049
Non -current liabilities:
Due in more than one year:
Compensated absences 71,029
Total liabilities 1,485,901
Net Position
Net investment in capital assets
Unrestricted
Total net position
5,040,403
18,989,610
$ 24,030,013
The accompanying notes are an integral part of the basic financial statements.
9
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Statement of Activities
Year ended September 30, 2013
Governmental
Activities
Expenses:
General government $ 1,170a 484
Community redevelopment 7,689,686
Total expenses 8,860,170
Program revenues:
Intergovernmental revenue:
Operating
Net expense
1,449,406
(7,410,764)
General revenues:
Tax increment revenue 10,030,533
Interest revenue 27,973
Net unrealized loss on fair value of investments (79,224)
Other income 20,700
Total general revenues 9,999,982
Change in net position 2,589,218
Net position - beginning of the year 21,440,795
Net position - end of the year $ 24,030,013
The accompanying notes are an integral part of the basic financial statements.
10
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Balance Sheet
Governmental Funds
September 30, 2013
General
Assets
Total
Special governmental
revenue funds
Equity in pooled cash $ 190,681 19,452,592 19,643,273
Interest receivable - 7,158 7,158
Due from other government 3,287 821,793 825,080
Total assets
Liabilities and Fund Balances
$ 193,968 20,281,543 20,475,511
Accounts payable $ 23,991 960,832 984,823
Due to other government - 430,049 430,049
Total liabilities 23,991 1,390,881 1,414,872
Fund balances:
Committed - 17,900,166 17,900,166
Assigned 990,496 990,496
Unassigned 169,977 169,977
Total fund balances 169,977 18,890,662 19,060,639
Total liabilities and fund balances $ 193,968 20,281,543
Amounts reported for governmental activities in the statement of net position consist of:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds.
Compensated absences are not due and payable in the current period and
therefore are not reported in the funds.
Net position of governmental activities
The accompanying notes are an integral part of the basic financial statements.
11
5,040,403
(71,029)
$ 24,030,013
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year ended September 30, 2013
General
Total
Special governmental
revenue funds
Revenues:
Tax increment revenue $ 10,030,533 10,030,533
Interest revenue - 27,973 27,973
Intergovernmental 634,223 815,183 1,449,406
Net unrealized loss in fair value of investments - (79,224) (79,224)
Other income 20,700 - 20,700
Total revenues 654,923 10,794,465 11,449,388
Expenditures:
Current:
General government 484,946 614,509 1,099,455
Community redevelopment - 10,614,479 10,614,479
Total expenditures 484,946 11,228,988 11,713,934
Deficiency of revenues under expenditures /
net change in fund balance 169,977 (434,523)
Fund Balance - beginning of the year 19,325,185
Fund Balance - end of the year $ 169,977 18,890,662 19,060,639
(264,546)
19,325,185
Net change in fund balance - total governmental funds
Amounts reported for governmental activities in the statement of activities are different because:
Items reported in the statement of activities do not require the use of current
financial resources, and therefore, are not reported as expenditures in
governmental funds:
Increase in compensated absences
The governmental fund reported capital outlays as expenditures, however, in the
statement of activities, the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense:
Expenditures for capital assets 2,973,047
Less: depreciation expense (48,254) 2,924,793
Change in net position of governmental activities $ 2,589,218
(264,546)
The accompanying notes are an integral part of the basic financial statements.
12
(71,029)
CITY OF MIAMI OMNI 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 Omni 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 1986 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 Omni 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.
The City entered into an Interlocal Cooperation Agreement on June 24,1996 with Miami -Dade County,
Florida (the County) whereby tax increment revenue collected by the parties would be paid to the
Agency and used in accordance with the approved budgets of the redevelopment plans and terms and
conditions of the lnterlocal Agreement for the benefit of the Agency. In addition, on March 13, 2000,
the Agency entered into an lnterlocal Agreement with the City, As stated on the agreement, the City has
agreed to provide financial support to the Agency for the planning, development, program management,
technical assistance, coordination, monitoring and other services needed for the projects. In addition, the
City has agreed to provide personnel and other resources including the use of the City attorney, which
shall serve as counsel and the City Clerk, which will serve as the official custodian of records. 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 the nonfiduciary activities of the Agency. For the most part, the
effect of interfund activity has been removed from these statements. 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.
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 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.
13
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
B. Government -wide Financial Statements (continued)
Separate financial statements are provided for the governmental funds. Major individual governmental
funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -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 resource measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered 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 to be 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. However, debt service expenditures, as well as expenditures related to compensated
absences and claims and judgments, are recorded only when payment is due.
Taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual
and so have been recognized as revenues of the current fiscal period. Only the portion due within the
current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other
revenue items are considered to be measurable and available only when cash is received by the
government.
The Agency reports the following major governmental funds:
■ The General Fund is the Agency's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund; and
• The Special Revenue Fund accounts for the proceeds of specific revenue sources (other than major
capital projects) that are legally restricted for specified purposes. Specifically, this fund reports tax
increment revenue collected from the City, County and The Children's Trust;
When both restricted and unrestricted resources are available for use, it is the Agency's policy to use
restricted resources first, then unrestricted resources as they are needed.
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 and statement of net assets.
E. Capital Assets
Capital assets are defined by the Agency as assets with an initial, individual cost of more than $1,000 and
an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market
value at the date of donation, unless donated by a related entity (e.g. the City). Capital assets donated by
a related entity are recorded at the net book value of the related entity at the time of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized.
14
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
F. Fund Equity / Net Assets
Fund equity
GASB Statement No. 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.
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.
G. 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.
15
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
G. Tax Increment Revenues (continued)
On June 24, 1996,.the City and County entered into an Interlocal Cooperation Agreement with the
Agency, whereby the Agency will receive over a three year period, commencing on the date of the
Agreement, a total of $1.2 million of tax increment revenue contributed by the City and County. If within
the three-year period the Agency receives more than $1.2 million in tax increment revenue, the excess
shall be remitted to the County for the Performing Arts Center Project. Thereafter, the Agency shall
remit to the County tax increment funds received up to, but no more than $1.43 million per year. The
obligation to pay the $1.43 million each year shall cease at such time that the County has no Performing
Arts Center construction bonds outstanding.
On December 31, 2007, the City and County entered into an Interlocal Agreement with the Agency (the
"Global Agreement"), whereby in addition to the $1.43 million per year described above for the
Performing Arts Center project, the Agency shall remit on March 31, 2010 and every March 31'
thereafter ending on March 31, 2012 an amount equal to 35% of the amount by which the increment
revenue exceeds $1.43 million, and on March 31, 2013 and every March 31" thereafter until March 31,
2027, including any additional time extensions beyond March 31, 2027, an amount equal to the greater
of $1.43 million or 35% of the increment revenue, provided that the mounts remitted by the Agency do
not exceed $25 million in any fiscal year. For the fiscal year ended September 30, 2013, the Agency
remitted a total of $3,360,169 to the County.
On August 6, 2007, the City, County and The Children's Trust (the Trust) entered into an Interlocal
Agreement with the Agency, whereby the Agency would receive from the Trust, on an annual basis, tax
increment revenues derived from the imposition of a half -mil tax levied by the Trust against real property
located within the redevelopment district (referred to as Trust revenues). The Agency agreed to use the
Trust revenues for debt service on, and other obligations relating to, existing debts of the Agency only
after all other available tax increment revenues have been exhausted for such purpose, and to remit to the
Trust on the last day of the Agency's fiscal year, all of the Trust revenues that are not needed for debt
service on, or other obligations relating to, existing debts of the Agency. As of September 30, 2013, the
Agency recorded an amount due to the Trust totaling $430,049.
H. 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 Deposits
The Agency's cash as of September 30, 2013, consisted of equity in pooled cash in the amount of
$19,279,721. The Agency's fund participates in the City's pool on a dollar equivalent and daily
transaction basis. Interest income and unrealized gains and losses in fair value of investments are
distributed monthly based on a monthly average balance.
16
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
2. Cash Deposits (continued)
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.
3. Capital Assets
Capital asset activity for the fiscal year ended September 30, 2013 was as follows:
Balance Balance
September Transfers / Transfers / September
30, 2012 Additions Deletions 30, 2013
Capital assets, not being depreciated:
Land
$ 823,039 823,039
Capital assets, being depreciated:
Infrastructure 1,368,604 2,958,679 4,327,283
Furniture and equipment _ 14,368 14,368
Total capital assets, being depreciated 1,368,604 2,973,047 4,341,651
Less accumulated depreciation for:
Infrastructure 76,033 45,620 121,653
Furniture and equipment - 2,634 2.634
Total accumulated depreciation 76,033 48,254 - 124,287
Total capital assets, being depreciated, net 1,292,571 2,924,793 4,217,364
Total capital assets (net of accumulated
depreciation) $ 2,115,610 2,924,793 5,040,403
During fiscal year 2013, depreciation expense in the amount of $48,254 was charged to Community
Redevelopment.
4. Long -Term Obligations
The changes in the long-term obligations for the year ended September 30, 2013 are summarized as
follows:
Balance Balance Amount due
September September within one
30, 2012 Additions Deletions 30, 2013 year
Compensated absences $ 71,029 _ - 71,029
17
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
5. Fund Balances
At September 30, 2013, the Agency reported the following governmental fund balances:
■ Committed fund balance - these amounts can only be used for specific purposes pursuant to
constraints imposed by the Board of the Agency. The items cannot be removed unless the Board
removes it in the same manner it was implemented.
• Assigned fund balance - these amounts are approved and constrained by the Agency's intent to be
used for specific purposes, but are neither restricted nor committed.
• Unassigned fund balance - these amounts have not been assigned to other funds and have not been
restricted, committed, or assigned to specific purpose within the general fund.
Below is a table of fund balance categories and classifications at September 30, 2013:
Special
General Revenue
Committed $ 17,900,166
Assigned 990,496
Unassigned 169,977
Total $ 169,977 18,890,662
6. 401(a) Deferred Compensation Plan
All employees, including executives and general employees, of the Agency are eligible, after one year of
service, to join the ICMA Retirement Trust 401(a) Deferred Compensation Plan (the Plan). The Plan
agreement requires the Agency to contribute 8% of each executive employee's earnable compensation,
and 5% of each general employee's earnable compensation. Contributions by executive and general
employees are not required. Participants may withdraw funds at retirement or upon separation based on
a variety of payout options. The following information relates to the Agency's participation in the
401(a) Deferred Compensation Plan:
Current year's payroll for executive employees $ 117,740
Current year's payroll for general employees 98,000
Current year's employer contributions for:
Executive employees (8% rate) 9,800
General employees (5% rate) 7,840
7. Commitment and Contingencies
The Agency is contractually obligated for approximately $10.425 million at September 30, 2013, for
construction projects.
In accordance with the Global Agreement entered into between the Agency, the County, and the City, the
Agency is committed to provide an annual contribution of $2 million to Museum Park's capital
expenditure fund, payable commencing on the date of substantial completion of the park component of
the project through 2030. As of September 30, 2013, the park was not substantially complete.
18
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Notes to Basic Financial Statements
September 30, 2013
7. Commitment and Contingencies (continued)
Also as part of the Global Agreement, the Agency agreed to fund the City's portion of the Port Tunnel
project upon substantial completion. On October 25, 2012, the Agency's Board authorized the issuance
of an annual grant to the City, in an amount equal to the total principal (up to $50 million) and interest on
the debt issued by the City to fund its portion of the Port Tunnel project, and further authorized the
Executive Director to execute a Port Tunnel Interlocal and Grant Agreement with the City. Payments on
the grant started in fiscal year 2013 and will continue through fiscal year 2030, and are pledged by tax
increment funds. During the fiscal year ended September 30, 2013, payments made on the grant to the
City totaled $1,539,508.
8. 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.
9. Subsequent events
The Agency evaluated subsequent events through February 5, 2014, the date the financial statements
were available to be issued.
19
Required Supplementary Information
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Budgetary Comparison Schedule - General Fund
(Required Supplementary Information - Unaudited)
For the year ended September 30, 2013
Variance -
Budgeted amounts positive
Original Final Actual (negative)
Revenues:
Intergovernmental $ 634,814 634,223 634,223
Other income - 20,700 20,700
Total revenues
Expenditures:
Current:
General government
Total expenditures
Excess of revenues over
634,814 634,223 654,923 20,700
634,814 634,223 484,946 149,277
634,814 634,223 484,946 149,277
expenditures 169,977 169,977
Net change in fund balance
Fund balance - beginning of the year
Fund balance - end of the year
169,977 169,977
$ 169,977
The note to the required supplementary information is an integral part of this schedule.
20
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Budgetary Comparison Schedule - Special Revenue Fund
(Required Supplementary Information - Unaudited)
Revenues:
Tax increment revenue
Interest revenue
Intergovernmental revenue
Net unrealized loss in fair value
of investments
Other income
Total revenues
For the year ended September 30, 2013
Budgeted amounts
Original Final Actual
$ 9,600,900 $ 9,598,671
10,030,533
27,973
815,183
(79,224)
9,600,900 9,598,671 10,794,465
Expenditures:
Current:
General government 610,509 610,509 614,509
Community redevelopment 29,084,844 28,323,347 10,614,479
Total expenditures 29,695,353 28,933,856 11,228,988
Deficiency of revenues under
expenditures
Other financing sources:
Net carryover fund balance
Total other financing sources
Net change in fund balance $ (434,523)
Fund balance - beginning of the year 19,325,185
Fund balance - end of the year $ 18,890,662
(20,094,453) (19,335,185) (434,523)
20,094,453 19,335,185
20,094,453 19,335,185
Variance -
positive
(negative)
431,862
27,973
815,183
(79,224)
1,195,794
(4,000)
17,708,868
17,704,868
18,900,662
19,335,185
19,335,185
(434,523)
The note to the required supplementary information is an integral part of this schedule.
21
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit of the City of Miami, Florida)
Note to Required Supplementary Information
September 30, 2013
1. Budgetary Policy
The Agency adopts an annual budget for the operations of the General Fund and Special Revenue Fund.
In accordance with generally accepted accounting principles, budgetary comparison information is
disclosed for the General Fund and the Special Revenue Fund.
The budgets are adopted on a basis consistent with U.S. generally accepted accounting principles.
Budgetary control is maintained at the fund level.
22
Other Reports
CERTIFIED PUBLIC ACCOUNTANTS
A CONSULTANTS
Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP
5805 Blue Lagoon Drive Suite 220 Miami, FL 33126
Tel: (305) 269-8633 Fax: (305) 265-0652 f 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 Omni 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 Omni 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.
23
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,
.44t441i, par‘6(4 Jo4t41.4e- 4eurxdbw-, /X°
February 5, 2014
24
SKJTG
CERTIFIED PUBLIC ACCOUNTANTS g CONSU€1ANIS
Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP
5805 Blue Lagoon Drive I Suite 220 I Miami, FI. 33126
Tel: (305) 269-8633 I Fax: (305) 265-0652 I 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 Omni Community
Redevelopment Agency:
We have audited the financial statements of the City of Miami Omni 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)1., 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
Ietter any recommendations to improve financial management. See current year findings and
recommendations at Appendix A to this report.
■ 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.
25
• 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.
"Ptt frittha \Lynx& ) 4,44/Nwat-,
February 5, 2014
26
Appendix A
CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY
(A Component Unit 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, 2013
Current Year's Findings and Recommendations
2013-1— Monthly Financial Reporting to the Board
Criteria — As a best practice, detailed monthly financial information should be reported to the Board
Members at the Agency's monthly Board meetings.
Condition — Based on review of the monthly Board meeting minutes, we noted that management of the
Agency is not presenting monthly financial information to the Board Members.
Cause — Once management of the City's three CRA's split in 2012, the Agency no longer had a full-time
Financial Officer. As such, financial information was not being accumulated and reported to the Board on
a monthly basis.
Effect — Presenting detailed monthly financial information to the Board Members will keep them apprised
of the financial condition of the Agency, and will provide them with the ability to make better informed
decisions as it relates to the Agency's finances.
Recommendation — We recommend that the Agency, at a minimum, report a detail of revenues and
expenditures on a monthly basis to the Board Members of the Agency.
View of Responsible Officials and Planned Corrective Actions — The Agency does present financial
information to the Board Members, but not in the format recommended above. Going forward, The
Agency will follow the recommendation above,