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Home My WebLink About10-00300 03-11-2010 Submittal-Management LetterCITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY, CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY, AND CITY OF MIAMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY (COMPONENT UNITS OF THE CITY OF MIAMI, FLORIDA) Management Letter in Accordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 2009 SKJ 5805 Blue JACOMNO�� Y»LLP Management Letter imAccordance with the Rules mfthe Auditor General oythe State mfFlorida Tothe Board of Directors of the City n[Miami Southeast OvertuwnPark West Redevelopment Agency, City ofMiami Omni Community Redevelopment Agency, and City of Miami Midtown Community Redevelopment Agency We have audited the financial statements of the City of Miami Southeast Overtown Park VVee Redevelopment Agency, City of Miami Omni Community Redevelopment Agency, and City of Miami Midtown Community Redevelopment Agency (collectively referred to as "the Agencies"), Component Units of the City of Miami, Florida, aacdand for the fiscal year ended 8epbamber3O. 2009 and have issued our reports thereon dated November 25.2OOQ. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General of the United States. We have issued our Independent Auditors' Rmpndo on Internal Control over Financial Reporting and on Compliance and Other Matters. Disclosures in those naports, which are dated Novmmbmr25. 2009should be considered in conjunction with this management letter. Additionally, our audits were conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct oflocal governmental entity audits performed in the State of Florida and, unless otherwise required to be reported in the report on compliance and internal controls or schedule of findings and questioned costs, this letter is required to include the following information, � Section 10.554(1)(i)1, Rules ofthe 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 inthe auditor's report pursuant Vn Section 10.557(3)(b)2.. Rules of the Auditor General. Thane were no significant findings and recommendations made inthe preceding annual financial audit report. � Section 10,554(l)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audits, we determined that the Agencies complied with Section 218.415. Florida Statutes. ° Section 1O.554(1)(i)3..Rules of the Auditor General, requires that weaddress inthe management letter any recommendations to improve financial management. Current year recommendations are included at Appendix A to this letter. " Section 10.554(1)(i)4, Rules of the Auditor General, requires that we address violations of contracts cvgrant agreements, mvabuse that have eneffect onthe financial statement that is less than meUaha| but more than inconsequential. In connection with our audits, we noted no such violations. Submitted into the public record in connection with items VZ- on 3-lLko. Priscilla A.Thompson SKJ � Section 10.554(1)(05, Rules of the Auditor General, requires, based on professional judgment, the reporting of the following matters that have an inconsequential to the determination effect on the financial statement, considering both quantitative and qualitative factors: (o) violations of provisions of contracts or grant agreements, fnaud. illegal aots, or abuse; and (b) control deficiencies that are not significant deficiencies. In connection with our audits, we did not have any such findings. � Section 10.554(1)(08, Rules of the Auditor Generm, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed inthis management letter, unless disclosed in the notes 0othe financial statements. Such disclosures are made in note 1 b,the Agencies' financial statements. " Section 10.B4(1)(i)7.o,Rules of the Auditor General, requires astatement beincluded as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503(1). Florida 8ta1utes, and identification of the specific condition(s) met. In connection with our audits, we determined that the Agencies did not meet any of the conditions described in Section2186O3(1). Florida Statutes. " Section 10.554(1)(07.b, Rules of the Auditor General, requires that we determine whether the annual financial reports for the Agencies for the fiscal year ended September 30. 2009. filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(o), Florida 8totutea, in in agreement with the annual financial audit report for the fiscal year ended September 30. %0OS.The Agencies donot file aseparate report with the State cfFlorida Department ofFinancial Services. The financial operations ofthe Agencies are included inthe basic financial statements ofthe City ofMiami, Florida for the year ended September 3O.2U0Q. " Sections 10.554(1)(i)7.c. and 10.568(7). Rules of the Auditor Genera[ require that we apply financial condition assessment procedures. In connection with our audits, we applied financial condition assessment procedures. It is management's responsibility to monitor the enhU/o financial oondiUon, and our financial condition assessment was based in pod on representations made bymanagement and the review of financial information provided bysame. This management letter is intended solely for the information and use of the board of directors, management of the Ageno)eo, and the State of Florida Office of the Auditor General. and is not intended tobeand should not beused byanyone other than these specified parties. 2 Submitted into the public record inconnection with iitemmxi�-7� on 2)~�k'ko_ Priscilla A. Thompson City Clerk Appendix CITY 0FMIAM|SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY, CITY OFK8|AM((3M8N|COMMUNITY REDEVELOPMENT AGENCY, AND CITY OPK8y\|K8UMIDTOWN COMMUNITY REDEVELOPMENT AGENCY (COMPONENT UNITS OFTHE CITY OPM8|AM(,FLORIDA) Management Letter inAccordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 2009 Current Year's Recommendations 2009-1 GASB Statement No. S4 CriterieSpecific Requirements In February 2009. the GASB issued Statement No. 54, Fund Balance Governmental Fund 7]po Definitions. The GASB developed Statement No. 54 to address the diversity of practice and the naau|Ung lack of consistency that had evolved in fund balance reporfinQ. To reduce confusion, the new standard establishes a hierarchy of fund balance classifications based primarily on the extent to which m government is bound to observe spending constraints imposed upon how n*oounoea reported in governmental funds may beused. Statement No. 54 distinguishes fund balance between amounts that are considered nonspendab|a and other amounts that are classified based on the relative strength of the constraints that control the purposes for which specific amounts can be spent. Beginning with the most binding cunstrainto, fund balance amounts will bereported (nthe following classifications: ° Restricted — amounts constrained by external parties, constitutional provision, or enabling legislation. ° Committed — amounts constrained by a government using its highest level of decision -making authority. ° Assigned — amounts agovernment intends touse for aparticular purpose. ° Unmnsigned—unoonatrainedamountavviUbenaportedinthegenee|fund. The new standard also clarifies the definitions of individual governmental fund types. It interprets rtain terms within the definition of special revenue fund typea, while further clarifying the debt service and capital projects fund type definitions. GASB Statement No. 54 is effective for the Agencies' financial statement period ending September 30. 2011'with earlier implementation encouraged. However, asthe Agencies are component units ofthe City of Mimmi. Florida, if the makes the decision to early implement GASB Statement No. 54. the Agencies will berequired toearly implement aswell. Condition Found Not applicable. Penspmobnm Not applicable. Effect Not applicable. Submitted into the public record in connection with itemmg'|\~|0 . Priscilla A. Thompson City Clerk Appendix A CITY OF MIAMI SOUTHEAST OVERTOWN PARK WEST REDEVELOPMENT AGENCY, CITY OF MIAMI OMNI COMMUNITY REDEVELOPMENT AGENCY, AND CITY OF MAIMI MIDTOWN COMMUNITY REDEVELOPMENT AGENCY (COMPONENT UNITS OF THE CITY OF MIAMI, FLORIDA) Management Letter in Accordance With the Rules of the Auditor General of the State of Florida Year ended September 30, 2009 Current Year's Recommendations Recommendation We recommend that management become familiar with GASB Statement No. 54, and be prepared to implement this pronouncement for the fiscal year ending September 30, 2011. However, if the City decides to implement GASB Statement No. 54 earlier than fiscal year ending September 30, 2011, the Agencies will be required to early implement as well. Management's Response Management acknowledges the recommendation made. We will discuss this with the City and be prepared to implement GASB Statement No. 54 when the City does. Submitted into the public record in connection with items 1r 2.- on Priscilla A. Thompson City Clerk