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HomeMy WebLinkAboutSubmittal-Commissioner Reyes-Financial Statements for City's operation at Melreese Golf Course Fiscal Years ending September 30, 2012-18 (Tab A)MEMORANDUM TO: Honorable Members of the City Commission FROM: Charles Delucca III, Vice President, Delucca Enterprises, Inc. RE: Melreese Golf Course; Audit of Professional Services Agreement between the City of Miami (Melreese Country Club) and Delucca Enterprises, Inc., Report No. 17-08 DATE: July 10, 2018 We have enclosed copies of the financial statements for the City's operations at Melreese Golf Course for fiscal years ending September 30, 2012-18 (Tab A) and our prior response to the Audit of Professional Services Agreement between the City of Miami (Melreese Country Club) and Delucca Enterprises, Inc., Report No. 17-08, dated August 9, 2017, prepared by the City of Miami's Independent Auditor General (Tab B). Delucca has previously provided all of these documents to the City, which are all existing public records. Melreese Operates at Surplus. The enclosed financial statements (Tab A) were audited by an independent certified public accounting firm as required by our Professional Services Agreement. The operations at Melreese have consistently produced a surplus. The net income at Melreese for fiscal years 2012 through 2018 follows: FYE 09/30/2012—surplus $136,351.62; FYE 09/30/2013—surplus $46,170.00; FYE 09/30/20111 deficit $592.00 (closed 4 months for remediation/renovation); FYE 09/30/2015—surplus $141,262.74; FYE 09/30/2016—surplus $95,027.00; FYE 09/30/2017—surplus $1,213.00 (Hurricane Irma); FYE 09/30/2018—surplus $274,040.27 (October through March). Delucca Fully Complies with the Requirements of its Agreement with the City. The enclosed executive summary and memorandum (Tab B) address the findings and recommendations made in the audit report of the City's Auditor General. Delucca has always kept the Parks Department fully informed of the operations and has also helped to maintain other City Parks at no charge to the City for the additional service. As explained in the enclosed executive summary and memorandum, the existing controls and procedures at Melreese are working very well and benefit the City by substantially reducing operating costs. As always, we would be pleased to meet with you at your convenience to answer any questions regarding our successful operations at Melreese Country Club. 4449-Submittal-Commissioner Reyes-Financacial Statements for City's operation at Melreese Golf Course Fiscal Years ending September 30, 2012-18 (Tab A) 4450-Submittal-Commissioner Reyes-Financacial Statements for City's operation at Melreese Golf Course Fiscal Years ending September 30, 2012-18 (Tab A) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB INCOME STATEMENT AND SUPPLEMENTARY INFORMATION Year Ended September 30, 2012 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk TABLE OF CONTENTS PAGES Independent Auditor's Report 1 - 2 Financial Statements: Statement of Income 3 Supplementary Information Schedule of Administrative Expenses 4 Schedule of Food and Beverage Expenses 5 Schedule of Golf Course Maintenance Expenses 6 Schedule of Golf Course Operations and Driving Range Expenses 7 Notes to Financial Statements 8 - 9 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INDEPENDENT AUDITOR'S REPORT To the Board of Directors Delucca Enterprises, Inc. We have audited the accompanying statement of income of International Links Miami / Melreese Country Club, (Golf Course Facilities), for the year ended September 30, 2012, and the related notes. Management's Responsibility for the Financial Statement Management is responsible for the preparation and fair presentation of this financial statement 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 the financial statement that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statement, 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 statement 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 statement. Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Qualified Opinion We did not observe the physical inventories for the pro shop stated at $46,863 and food and beverage stated at $31,034 taken as of September 30, 2011, since that date was prior to our initial engagement as auditors for the Golf Course Facilities and its records do not permit adequate retroactive tests of inventory quantities. In addition, fertilizer and chemical inventories were not taken under consideration as of September 30, 2011. Consequently, we were unable to determine whether any adjustments were necessary in the statement of income. Qualified Opinion In our opinion, except for the possible effects on the statement of income of the matter discussed in the Basis for Qualified Opinion paragraph, the financial statement referred to in the first paragraph presents fairly, in all material respects, the results of operations of International Links Miami / Melreese Country Club for the year ended September 30, 2012 in accordance with accounting principles generally accepted in the United States of America. Qualified Opinion on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the basic financial statement taken as a whole. The Supplementary Information on pages 4, 5, 6 and 7 are presented for purposes of additional analysis and is not a required part of the financial statement. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statement. The information has been subjected to the auditing procedures applied in the audit of the financial statement and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statement, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, except for the effects on the statement of income of the matter discussed in the Basis for Qualified Opinion on the financial statement as explained in the second preceding paragraph, such information is fairly stated in all material respects in relation to the financial statement as a whole. Vargas, Pra & Co., CPAS Miami, Florida January 17, 2013 2 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk SUPPLEMENTARY INFORMATION Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB INCOME STATEMENT FOR THE YEAR ENDED SEPTEMBER 30, 2012 REVENUES: Golf Revenues Restaurant Revenues Range Revenues Pro Shop Merchandise Revenue Gift Certificate Revenue Tennis Course Revenues Sales Taxes Collected TOTAL REVENUES OPERATING EXPENSES: Administrative Expenses Food and Beverage Expenses Golf Course Maintenance Expenses Golf Operations and Driving Range Expenses TOTAL OPERATING EXPENSES NET INCOME 2012 $ 1,700,836 829,189 171,283 213,749 515 3,940 158.945 $ 3,078,457 275,699 878,645 979,374 779,832 $ 2,913,550 $ 164,907 SEE INDEPENDENT AUDIPIS REPORT the public record for item(s) 3 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2012 2012 Advertising $ 352 Automobile Expense 1,369 Base Compensation - Delucca Enterprises, Inc. 200,000 Computer Supplies and Expenses 1,470 Delivery 203 Dues and Fees 6,295 Equipment Repair 41 Legal and Accounting 42,200 Licenses and Taxes 4,433 Marketing Fees 7,051 Miscellaneous 2,010 Security 5,084 Stationery and Printing 4,233 Telephone 955 Utilities 3 TOTAL ADMINISTRATIVE EXPENSES SEE INDEPENDENT AUDITOR'S REPORT 4 $ 275.699 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF FOOD AND BEVERAGE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2012 2012 Advertising $ 1,540 Comcast - Cable 3,747 Employee Leasing Services 373,429 Employee Leasing Costs 77,453 Equipment Repair 1,819 Flowers and Decorations 128 Guest and Cleaning Supplies 1,284 Kitchen and Bar Supplies 41,446 Purchases - Beverage 64,152 Purchases - Food 185,259 Purchases- Water 1,671 Sales Taxes 113,805 Security 9,105 Telephone 868 Uniforms 32 Utilities 14 Waste 660 Water and Sewer 2,810 Beginning Inventory -Restaurant 31,034 Ending Inventory - Restaurant (31,611) TOTAL FOOD AND BEVERAGE EXPENSES SEE INDEPENDENT AUDITOR'S REPORT 5 $ 878.645 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE MAINTENANCE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2012 Employee Leasing Services Employees Leasing Costs Equipment Rental Equipment Repair Fertilizer and Chemicals Fuel and Lubricants Golf Cart Repair Grass, Seed, Soil and Sand Grounds Repair Insurance Irrigation Repair Maintenance and Repairs Outside Services Security Small Tools Supplies Telephone Uniforms Utilities Water and Sewer Repair and Maintenance - City Parks Ending Chemical and Fertilizer Inventory TOTAL GOLF COURSE MAINTENANCE EXPENSES SEE INDEPENDENT AUDITOR'S REPORT 6 2012 $ 467,246 97,236 983 44,028 177,221 108,062 7,585 32,220 22,263 29,872 11,990 8,680 13,456 28,420 1,845 27,807 868 2,988 235 29,694 (92,539) (40,786) $ 979,374 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF OPERATIONS AND DRMNG RANGE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2012 2012 Advertising $ 348 Commissions 691 Credit Card Costs 59,111 Driving Range Supplies 7,344 Employee Leasing Services 379,770 Employee Leasing Costs 78,655 Equipment Repair 596 Golf Course Lease 54,831 Insurance 9,957 Marketing Fees 928 Purchases - Golf Balls 23,505 Purchases - Golf Clubs 3,032 Purchases - Merchandise 86,184 Purchases - Other 6,785 Purchases - Discounts (2,916) Sales Taxes 45,140 Security 11,331 Supplies 64 Telephone 1,488 Uniforms 761 Waste 132 Water and Sewer 7,986 Beginning Inventory - Pro Shop 46,863 Ending Inventory - Pro Shop (42,754) TOTAL GOLF OPERATIONS AND DRMNG RANGE $ 779,832 SEE INDEPENDENT AUDITOR'S REPORT 7 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2012 NATURE OF OPERATIONS International Links Miami / Melreese Country Club is an 18-hole championship public golf course and restaurant, located in the City of Miami, Florida. The golf course and restaurant is open to the public on a daily basis. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition The golf course and restaurant recognizes revenues from daily green fees, tournaments, golf range activities, restaurant and pro shop sales once the service has been provided. Inventory Inventory is valued at lower of cost or market using the first -in, first -out method. Use of Estimates The preparation of financial statements in conformity with accounting principles accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those reported by management. INVENTORIES Inventories consist of the following at September 30, 2012. Chemical and Fertilizer Food and Beverage - Restaurant Pro Shop Merchandise REPAIR AND MAINTENANCE - CITY PARKS $ 40,786 31,611 42,754 $ 115,151 The golf course maintains various recreational parks within the City of Miami. The estimated cost of maintaining these parks is $92,539, which has been reflected as a reduction adjustment to the golf course maintenance expenses. 8 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk PROFESSIONAL SERVICES AGREEMENT The City of Miami has a professional services agreement with Delucca Enterprises, Inc. in effect at September 30, 2012 through September 30, 2021 with a base compensation of $200,000. This agreement includes increases of 3% during any fiscal year under certain conditions. The agreement also provides for incentive compensation. 9 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk DeLucca Enterprises 1802 NW 37th Avenue Miami, FL 33125 11/1/2013 Laclevia Morley, Invoice # 000111 Balance of pay due to Charles DeLucca Year End 2011-2012 — 30% Payable to DeLucca Enterprises, Inc. (Charles DeLucca) $164,907.00 —Net Profit $28,555.38 — Bills Paid Directly to Vendor via City of Miami $136,351.62 —Net Profit $ 40,905.49 — 30% of Net Profit Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB INCOME STATEMENT AND SUPPLEMENTARY INFORMATION Year Ended September 30, 2013 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk TABLE OF CONTENTS PAGES Independent Auditor's Report 1— 2 Independent Auditor's Report on Supplementary Information 3 Financial Statements: Statement of Income 4 Supplementary Information Schedule of Administrative Expenses 5 Schedule of Food and Beverage Expenses 6 Schedule of Golf Course Maintenance Expenses 7 Schedule of Golf Course Operations and Driving Range Expenses 8 Notes to Financial Statements 9-10 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB INCOME STATEMENT FOR THE YEAR ENDED SEPTEMBER 30, 2013 REVENUES: 2013 Golf Revenues $ 1,666,469 Range Revenues 203,539 Restaurant Revenues 859,717 Pro Shop Merchandise Revenue 240,576 Tennis Courts Revenue 2,276 Sales Tax Collected 172,018 TOTAL REVENUES 3,144,595 OPERATING EXPENSES: Administrative Expenses 305,544 Food and Beverage Expenses 814,756 Golf Course Maintenance Expenses 1,075,255 Golf Course Operations Expenses 902,870 TOTAL OPERATING EXPENSES $ 3,098,425 NET INCOME $ 46,170 See Accompanying Notes and Independent Auditor's Report (4) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk SUPPLEMENTARY INFORMATION Submitted into the public record for item(s) 4449 and 4450 on 07/1212018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2013 2013 Advertising $ 1,056 Automobile Expense 182 Bank Charges 73 Base Compensation — Charles Delucca Jr. 200,000 Employee Leasing Cost 7,001 Delivery 325 Dues, Fees and Subscriptions 6,838 Legal and Accounting 54,786 Licenses and Taxes 4,057 Maintenance and Repairs 2,050 Maintenance and Repairs (Non -Reimbursable) 5,000 Marketing Fees 4,454 Miscellaneous 566 Postage 12 Security 5,836 Stationery and Printing 11,233 Supplies 50 Telephone 1,676 Training — Administrative 350 TOTAL ADMINISTRATIVE EXPENSES $ 305,545 See Accompanying Notes and Independent Auditor's Report (5) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF FOOD AND BEVERAGE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2013 2013 Advertising $ 485 Cable — Comcast 3,723 China, Glass and Silverware 300 Employee Leasing Services 391,084 Employee Leasing Cost 67,644 Equipment Repair 3,714 Flowers and Decorations 38 Guest and Cleaning Supplies 855 Kitchen and Bar Supplies 29,678 Purchases 195,575 Purchases — Beverages 58,779 Purchases — Kitchen Supply 45 Purchases — Water 1,502 Sales Tax 49,782 Security 9,921 Telephone 662 Uniforms 590 Water and Sewer 1,974 Beginning Inventory 31,611 Ending Inventory ( 33,207) TOTAL FOOD AND BEVERAGE EXPENSES $ 814,755 See Accompanying Notes and Independent Auditor's Report (6) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE MAINTENANCE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2013 2013 Employee Leasing Services $ 452,068 Employee Leasing Cost 92,738 Equipment Repair 87,519 Fertilizer and Chemicals 191,169 Fuel and Lubricants 100,272 Golf Cart Repair 7,972 Grass, Seed, Soil and Sand 22,608 Grounds Repair 25,251 Insurance 36,951 Irrigation Repair 21,300 Maintenance and Repairs — City Parks ( 92,539) Maintenance and Repairs 6,115 Outside Services 36,170 Security 30,345 Small Tools 3,908 Supplies 27,247 Telephone 662 Travel 1,599 Uniforms 4,119 Water and Sewer 9,050 Beginning Chemical Inventory 40,786 Ending Chemical Inventory ( 30,055) TOTAL GOLF COURSE MAINTENANCE $ 1,075,255 See Accompanying Notes and Independent Auditor's Report (7) Submitted into the public record for itern(s) 4449 and 4450 on 07i1212018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE OPERATIONS EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2013 2013 Advertising $ 2,628 Commissions 935 Credit Card Cost 56,319 Driving Range Supplies 20,140 Employee Leasing Services 370,081 Employee Leasing Cost 98,022 Equipment Repair 128 Golf Cart Lease 55,277 Insurance 12,317 Pro Shop Merchandise 118,900 Purchases — Golf Balls 27,415 Purchases — Golf Clubs 669 Purchases — Other 1,991 Purchases — Discounts ( 3,652) Sales Tax 122,236 Security 12,255 Stationery and Printing 856 Supplies 5,284 Telephone 1,412 Utilities 24 Water and Sewer 5,430 Beginning Inventory 42,754 Ending Inventory ( 48,551) TOTAL GOLF COURSE OPERATIONS $ 902,870 See Accompanying Notes and Independent Auditor's Report (8) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2013 NATURE OF OPERATIONS International Links Miami / Melreese Country Club is an 18-hole championship public golf course and restaurant, located in the City of Miami, Florida. The golf course and restaurant is open to the public on a daily basis. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition The golf course and restaurant recognizes revenues from daily green fees, tournaments, golf range activities, restaurant and pro shop sales once the service has been provided. Inventory Inventory is valued at lower of cost or market using the first -in, first -out method. Use of Estimates The preparation of financial statements in conformity with accounting principles accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those reported by management. INVENTORIES Inventories consist of the following at September 30, 2013. Chemical and Fertilizer Food and Beverage - Restaurant Pro Shop Merchandise 9 $ 30,055 33,207 48,551 $ 111,813 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2013 REPAIR AND MAINTENANCE - CITY PARKS The golf course maintains various recreational parks within the City of Miami. The estimated cost of maintaining these parks is $92,539, which has been reflected as a reduction adjustment to the golf course maintenance expenses. PROFESSIONAL SERVICES AGREEMENT The City of Miami has a professional services agreement with Delucca Enterprises, Inc. in effect at September 30, 2012 through September 30, 2021 with a base compensation of $200,000. This agreement includes increases of 3% during any fiscal year under certain conditions. The agreement also provides for incentive compensation. 10 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk VARGAS, PIEDRA & CO. CERTIFIED PUBLIC ACCOUNTANTS MEMBERS ONE DATRAN CENTER AMERICAN AND FLORIDA 9100 SOUTH DADELAND BLVD. INSTITUTE OF SUITE 912 CERTIFIED PUBLIC ACCOUNTANTS MIAMI, FLORIDA 33156 INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION To the Board of Directors Delucca Enterprises, Inc. Miami, Florida TELEPHONE (305) 671-0003 FAX (305) 671-6263 We have audited the accompanying statement of income of International Links Miami / Melreese Country Club, (Golf Course Facilities), for the year ended September 30, 2013, and our report thereon dated January 9, 2014, which expressed an unmodified opinion on the statement of income, appears on page 1-2. Our audit was conducted for the purpose of forming an opinion on the statement of income as a whole. The schedule of administrative expenses, schedule of food and beverage expenses, schedule of golf course maintenance expenses and schedule golf course operations expenses are presented for purposes of additional analysis and are not a required part of the statement of income. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the statement of income. The information has been subjected to the auditing procedures applied in the audit of the statement of income and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statement of income and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the statement of income as a whole. arg , Piedra & Co., CPAS Miami, Florida January 9, 2014 3 Submitted into the public: record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk VARGAS, PIEDRA & CO. CERTIFIED PUBLIC ACCOUNTANTS MEMBERS AMERICAN AND FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Board of Directors Delucca Enterprises, Inc. Miami, Florida ONE DATRAN CENTER 9100 SOUTH DADELAND BLVD. SUITE 912 MIAMI, FLORIDA 33156 TELEPHONE (305) 671-0003 FAX (305) 671-6263 We have audited the accompanying statement of income of International Links Miami / Melreese Country Club, (Golf Course Facilities), for the year ended September 30, 2013, and the related notes. Management's Responsibility for the Financial Statement Management is responsible for the preparation and fair presentation of this financial statement 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 the financial statement that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statement, 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 statement 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 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk 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 statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the statement of income referred to above presents fairly, in all material respects, the results of operations of International Links Miami / Melreese Country Club, (Golf Course Facilities) for the year ended September 30, 2013 in accordance with accounting principles generally accepted in the United States of America. 44 i Varga, Piedra & Co., CPAS Miami, Florida January 9, 2014 2 Submitted into the public record for items) 4449 and 4450 on 07/12/2018. - City Clerk DeLucca Enterprises 1802 NW 37th Avenue Miami, FL 33125 2/7/2013 Laclevia Morley, Invoice # 000118 Balance of pay due to Charles DeLucca Year End 2012-2013 — 30% Payable to DeLucca Enterprises, Inc. (Charles DeLucca) $46,170.00 — Net Profit $13,851.00 = 30% of Net Profit Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB STATEMENT OF (LOSS) AND SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2014 Submitted into the public record for items) 4449 and 4450 on 07/12/2018. - City Clerk TABLE OF CONTENTS Independent Auditor's Report Financial Statements: Statement of (Loss) Supplementary Information Schedule of Administrative Expenses PAGES 1-2 3 4 Schedule of Food and Beverage Expenses 5 Schedule of Golf Course Maintenance Expenses 5 Schedule of Golf Course Operations and Driving Range Expenses 7 Notes to Financial Statements 8 - 10 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk VARGAS, PIEDRA & CO. CERTIFIED PUBLIC ACCOUNTANTS MEMBERS AMERICAN AND FLORIDA INSTITUTE OF CERTIFIED PUBUC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Board of Directors Delucca Enterprises, Inc. Miami, Florida ONE DATRAN CENTER 9100 SOUTH DADELAND BLVD. SUITE 912 MIAMI, FLORIDA 33156 TELEPHONE (305) 671-0003 FAX (305) 671-6263 We have audited the accompanying statement of (loss) of International Links Miami / Melreese Country Club, (Golf Course Facilities), for the year ended September 30, 2014, and the related notes. Management's Responsibility for the Financial Statement Management is responsible for the preparation and fair presentation of this financial statement 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 the financial statement that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statement, 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 statement 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 statement. Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the statement of (loss) referred to above presents fairly, in all material respects, the results of operations of International Links Miami / Melreese Country Club, (Golf Course Facilities) for the year ended September 30, 2014 in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the statement of (loss) as a whole. The schedule of administrative expenses, schedule of food and beverage expenses, schedule of golf course maintenance expenses and schedule of golf course operations expenses are presented for purposes of additional analysis and are not a required part of the statement of (loss). Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the statement of (loss). The information has been subjected to the auditing procedures applied in the audit of the statement of income and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statement of income and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the statement of (loss) as a whole. 0/41W "A44 4. ((21. Varg Piedra & Co., CPAS Miami, Florida April 7, 2015 2 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB STATEMENT OF (LOSS) FOR THE YEAR ENDED SEPTEMBER 30, 2014 REVENUES: 2014 Golf Revenues $ 1,044,374 Range Revenues 162,776 Pro Shop Merchandise Revenue 192,322 Restaurant Revenues 669,372 Tennis Courts Revenue 1,738 Sales Tax Collected 119,772 TOTAL REVENUES $2,190,354 OPERATING EXPENSES: Administrative Expenses 225,410 Food and Beverage Expenses 603,584 Golf Course Maintenance Expenses 735,927 Golf Course Operations Expenses 626,025 TOTAL OPERATING EXPENSES $ 2,190,946 NET (LOSS) $( 592) See Accompanying Notes and Independent Auditor's Report (3) Submitted into the public record for item(s) 4449 and 4450 on 07/1212019. - City Clerk SUPPLEMENTARY INFORMATION Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2014 2014 Advertising $ 1,486 Bank Charges 24 Base Compensation — Charles Delucca Jr. 148,598 Computer Supplies and Expenses 630 Employee Leasing Cost 6,758 Delivery 411 Dues, Fees and Subscriptions 4,830 Equipment Repair 79 Legal and Accounting 49,898 Licenses and Taxes 1,698 Marketing Fees 3,060 Miscellaneous 168 Promotional Expenses 537 Security 3,932 Stationery and Printing 1,586 Supplies 166 Telephone 1,549 TOTAL ADMINISTRATIVE EXPENSES $ 225,410 See Accompanying Notes and Independent Auditor's Report (4) Submitted into the public record for items) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF FOOD AND BEVERAGE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2014 2014 Cable — Comcast $ 2,441 Credit Card Costs 12,930 Employee Leasing Services 278,447 Employee Leasing Cost 65,395 Equipment Repair 2,447 Flowers and Decorations 400 Guest and Cleaning Supplies 13 Kitchen and Bar Supplies 18,189 Outside Services 2,281 Paper and Disposals 191 Purchases 130,082 Purchases — Beverages 39,567 Purchases — Water 764 Sales Tax 38,720 Security 6,684 Telephone 425 Uniforms 939 Waste 775 Water and Sewer 96 Beginning Inventory 33,207 Ending Inventory ( 30,409) TOTAL FOOD AND BEVERAGE EXPENSES $ 603,584 See Accompanying Notes and Independent Auditor's Report (5) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE MAINTENANCE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2014 2014 Employee Leasing Services $ 329,014 Employee Leasing Cost 75,252 Equipment Rental 735 Equipment Repair 69,957 Fertilizer and Chemicals 136,566 Fuel and Lubricants 65,314 Golf Cart Repair 10,929 Grass, Seed, Soil and Sand 14,573 Grounds Repair 23,399 Insurance 29,359 Irrigation Repair 5,203 Maintenance and Repairs 8,789 Outside Services 35,123 Security 21,023 Small Tools 1,932 Supplies 23,645 Telephone 425 Travel 673 Uniforms 2,508 Waste 301 Water and Sewer 906 Maintenance and Repairs — City Parks ( 108,550) Beginning Chemical Inventory 30,055 Ending Chemical Inventory ( 41:204) TOTAL GOLF COURSE MAINTENANCE $ 735.927 See Accompanying Notes and Independent Auditor's Report (6) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE OPERATIONS EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2014 2014 Advertising $ 1,750 Cable — Golf Operations 217 Commissions 26,965 Credit Card Cost 27,106 Driving Range Supplies 3,675 Employee Leasing Services 277,977 Employee Leasing Cost 49,295 Equipment Repair 618 Golf Cart Lease 42,756 Insurance 9,786 Marketing 573 Pro Shop Merchandise 78,253 Purchases — Golf Balls 9,448 Purchases — Golf Clubs 510 Purchases — Other 215 Purchases — Discounts ( 1,713) Sales Tax 81,053 Security 8,257 Stationery and Printing 667 Supplies 10,018 Telephone 1,043 Utilities 74 Water and Sewer 265 Beginning Inventory 48,551 Ending Inventory ( 51,334) TOTAL GOLF COURSE OPERATIONS $ 626,025 See Accompanying Notes and Independent Auditor's Report (7) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2014 NATURE OF OPERATIONS International Links Miami / Melreese Country Club is an 18-hole championship public golf course and restaurant, located in the City of Miami, Florida. The golf course and restaurant are open to the public on a daily basis. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition The golf course and restaurant recognizes revenues from daily green fees, tournaments, golf range activities, restaurant and pro shop sales once the service has been provided. Inventory Inventory is valued at lower of cost or market using the first -in, first -out method. Use of Estimates The preparation of financial statements in conformity with accounting principles accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those reported by management. INVENTORIES Inventories consist of the following at September 30, 2014. Food and Beverage — Restaurant $ 30,409 Chemical and Fertilizer 41,204 Pro Shop Merchandise 51,334 (8) $ 122.947 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2014 REPAIR AND MAINTENANCE - CITY PARKS The golf course maintains various recreational parks within the City of Miami. The estimated cost of maintaining these parks is $108,550, which has been reflected as a reduction adjustment to the golf course maintenance expenses. PROFESSIONAL SERVICES AGREEMENT The City of Miami has a professional services agreement with Delucca Enterprises, Inc. in effect at September 30, 2012 through September 30, 2021 with a base compensation of $200,000. This agreement includes increases of 3% during any fiscal year under certain conditions. The agreement also provides for incentive compensation. INCOME TAXES The Company, with the consent of its shareholders, has elected to be an "S" Corporation under the Internal Revenue Code and similar state law. Instead of paying corporate taxes, the shareholders are taxed individually on the Company's taxable income. Therefore, no provision or liability for federal and state taxes has been made. The following table summarizes the open tax years for each major jurisdiction: Jurisdiction Open Tax Years Federal December 31, 2011-December 31, 2014 State December 31, 2011-December 31, 2014 (9) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2014 REMEDIATION COSTS During the period from June 23, 2014 to October 1, 2014 the golf course was closed due to renovation and improvements. The following are the cost of such renovation and improvements incurred. Remediation $ 948,487 Allocated Expenses: Operating Expenses 185,231 Payroll Expenses 352.723 Management Agreement 51,402 S1,537,843 SUBSEQUENT EVENTS Management has evaluated all activity through September 30, 2014 (the report date of the statement of income) and concluded that no subsequent events have occurred that would require recognition in the statement of income or disclosure in the notes to the financial statements through April 7, 2015 (the date the financial statements were available for issuance). (10) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB STATEMENT OF INCOME AND SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2015 RECEIVED JUL I 1 2018 BY: Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk TABLE OF CONTENTS PAGES Independent Auditor's Report 1— 2 Financial Statements: Statement of Income 3 Supplementary Information Schedule of Administrative Expenses 4 Schedule of Food and Beverage Expenses 5 Schedule of Golf Course Maintenance Expenses 6 Schedule of Golf Course Operations and Driving Range Expenses Notes to Financial Statements 8 - 10 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk VARGAS, PIEDRA & CO. CERTIFIED PUBLIC ACCOUNTANTS MEMBERS ONE DATRAN CENTER. AMERICAN AND FLORIDA 9100 SOUTH DADELAND BLVD INSTITUTE OF SUITE 912 CERTIFIED PUBLIC ACCOUNTANTS MIAMI, FLORIDA 33156 INDEPENDENT AUDITOR'S REPORT To the Board of Directors Delucca Enterprises, Inc. Miami, Florida TELEPHONE (305) 671-0003 FAX (305) 671-6263 We have audited the accompanying statement of income of International Links Miami / Melreese Country Club, (Golf Course Facilities), for the year ended September 30, 2015, and the related notes. Management's Responsibility for the Financial Statement Management is responsible for the preparation and fair presentation of this financial statement 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 the financial statement that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statement, 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 statement 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 ofthe- inancial statement_ - Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion in our opinion, the statement of income referred to above presents fairly, in all material respects, the results of operations of International Links Miami / Melreese Country Club, (Golf Course Facilities) for the year ended September 30, 2015 in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the statement of income as a whole. The schedule of administrative expenses, schedule of food and beverage expenses, schedule of golf course maintenance expenses and schedule of golf course operations expense are presented for purposes of additional analysis and are not a required part of the statement of income. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the statement of income. The information has been subjected to the auditing procedures applied in the audit of the statement of income and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statement of income and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the statement of income as a whole. qa. Varga Piedra & Co., CPAS Miami, Florida November 19, 2015 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk SUPPLEMENTARY INFORMATION Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB STATEMENT OF INCOME FOR THE YEAR ENDED SEPTEMBER 30, 2015 REVENUES: 2015 Golf Revenues $ 1,779,732 Range Revenues 241,369 Pro Shop Merchandise Revenue 278,798 Restaurant Revenues 948,587 Sales Tax Collected 195,681 TOTAL REVENUES $3,444,167 OPERATING EXPENSES: Administrative Expenses 309,871 Food and Beverage Expenses 864,829 Golf Course Maintenance Expenses 1,053,626 Golf Course Operations Expenses 921 338 TOTAL OPERATING EXPENSES $ 3,149,664 NET INCOME $ 294,503 See Accompanying Notes and Independent Auditor's Report (3) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2015 2015 Advertising $ 8,767 Bank Charges 211 Base Compensation — Charles Delucca Jr. 200,000 Employee Leasing Cost 16,348 Delivery 184 Dues, Fees and Subscriptions 5,873 Legal and Accounting 52,300 Licenses and Taxes 2,898 Marketing Fees 7,845 Postage 13 Security 4,999 Stationery and Printing 9,234 Telephone 1,199 TOTAL ADMINISTRATIVE EXPENSES $ 309.871 See Accompanying Notes and Independent Auditor's Report (4) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF FOOD AND BEVERAGE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2015 2015 Cable — Comcast $ 2,763 Credit Card Costs 17,952 Employee Leasing Services 397,833 Employee Leasing Cost 89,088 Equipment Repair 7,290 Flowers and Decorations 41 Guest and Cleaning Supplies 157 Kitchen and Bar Supplies 19,782 Kitchen Laundry 13 Menus and Tickets 190 Purchases 187,723 Purchases — Beverages 75,062 Purchases — Water 2,702 Sales Tax 57,141 Security 8,499 Telephone 61 Uniforms 745 Water and Sewer 421 Beginning Inventory 30,411 Ending Inventory ( 33,045) TOTAL FOOD AND BEVERAGE EXPENSES $ 864,829 See Accompanying Notes and Independent Auditor's Report (5) Submitted into the public record for items) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE MAINTENANCE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2015 2015 Employee Leasing Services $ 494,989 Employee Leasing Cost 110,735 Equipment Repair 81,975 Fertilizer and Chemicals 172,932 Fuel and Lubricants 76,353 Golf Cart Repair 8,079 Grass, Seed, Soil and Sand 14,994 Grounds Repair 3,510 Insurance 39,758 Irrigation Repair 11,883 Maintenance and Repairs 44,096 Outside Services 24,212 Security 26,054 Small Tools 865 Supplies 40,269 Telephone 61 Uniforms 4,341 Waste 822 Water and Sewer 1,929 Maintenance and Repairs — City Parks ( 107,800) Beginning Chemical Inventory 41,204 Ending Chemical Inventory ( 37,635) TOTAL GOLF COURSE MAINTENANCE $ 1,053,626 See Accompanying Notes and Independent Auditor's Report (6) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE OPERATIONS EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2015 2015 Cable — Golf Operations $ 2,761 Commissions 3,525 Credit Card Costs 43,085 Driving Range Supplies 15,181 Employee Leasing Services 410,923 Employee Leasing Cost 92,071 Equipment Repair 1,778 Golf Cart Lease 52,275 Insurance 13,252 Pro Shop Merchandise 132,635 Purchases — Golf Balls 21,800 Purchases — Golf Clubs 645 Purchases — Other 70 Purchases — Discounts ( 3,586) Sales Tax 138,541 Security 10,499 Stationery and Printing 472 Supplies 6,825 Telephone 130 Utilities 675 Water and Sewer 1,157 Beginning Inventory 51,334 Ending Inventory ( 74,710) TOTAL GOLF COURSE OPERATIONS $ 921,338 See Accompanying Notes and Independent Auditor's Report (7) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2015 NATURE OF OPERATIONS International Links Miami / Melreese Country Club is an 18-hole championship public golf course and restaurant, located in the City of Miami, Florida. The golf course and restaurant are open to the public on a daily basis. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition The golf course and restaurant recognize revenues from daily green fees, tournaments, golf range activities, restaurant and pro shop sales once the service has been provided. Inventory Inventory is valued at lower of cost or market using the first -in, first -out method. Use of Estimates The preparation of financial statements in conformity with accounting principles accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those reported by management. INVENTORIES Inventories consist of the following at September 30, 2015. Food and Beverage — Restaurant Chemical and Fertilizer Pro Shop Merchandise (8) $ 33,045 37,635 74,710 $ 145,390 Submitted into the public record for item(s) 4449 and 4450 on 0711212018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2015 REPAIR AND MAINTENANCE - CITY PARKS The golf course maintains various recreational parks within the City of Miami. The estimated cost of maintaining these parks is $107,800, which has been reflected as a reduction adjustment to golf course maintenance expenses. PROFESSIONAL SERVICES AGREEMENT The City of Miami has a professional services agreement with Delucca Enterprises, Inc. in effect at September 30, 2012 through September 30, 2021 with a base compensation of $200,000. This agreement includes increases of 3% during any fiscal year under certain conditions. The agreement also provides for incentive compensation. INCOME TAXES The Company, with the consent of its shareholders, has elected to be an "S" Corporation under the Internal Revenue Code and similar state law. Instead of paying corporate taxes, the shareholders are taxed individually on the Company's taxable income. Therefore, no provision or liability for federal and state taxes has been made. The following table summarizes the open tax years for each major jurisdiction: Jurisdiction Open Tax Years Federal December 31, 2011-December 31, 2015 State December 31, 2011-December 31, 2015 (9) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2015 REMEDIATION COSTS During the period from October 10, 2014 to September 30, 2015 the following cost of renovation and improvements were incurred. Club House $ 40,096 Golf Course 376,666 SUBSEQUENT EVENTS Management has evaluated all activity through September 30, 2015 (the report date of the statement of income) and concluded that no subsequent events have occurred that would require recognition in the statement of income or disclosure in the notes to the financial statements through November 19, 2015 (the date the financial statements were available for issuance). (10) Submitted into the public record for item(s) 4449 and 4450 on 0711212018. - City Clerk DeLucca Enterprises 1802 NW 37th Avenue Miami, FL 33125 4/8/2016 Daniel Newhoff, Invoice # 000140 Balance of pay due to Charles DeLucca Year End 2014-2015 — 30% Payable to DeLucca Enterprises, Inc. (Charles DeLucca) $294,503.00 — Net Profit $153,240.26 — Bills Paid Directly to Vendors by City of Miami $141,262.74 — Net Profit with Direct Payments Removed $42,378.82 = 30% of Net Profit Due to DeLucca Enterprises, Inc. Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk RECEIVED JUL 11 2018 BY: INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB STATEMENT OF INCOME AND SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2016 Submitted into the public record for item(s) 4449 and 4450 on 07112(2018. - City Clerk TABLE OF CONTENTS PAGES Independent Auditor's Report 1— 2 Financial Statements: Statement of Income 3 Supplementary Information Schedule of Administrative Expenses 4 Schedule of Food and Beverage Expenses 5 Schedule of Golf Course Maintenance Expenses 6 Schedule of Golf Course Operations and Driving Range Expenses 7 Notes to Financial Statements 8 - 11 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INDEPENDENT AUDITOR'S REPORT To the Board of Directors Delucca Enterprises, Inc. Miami, Florida We have audited the accompanying statement of income of International Links Miami / Melreese Country Club, (Golf Course Facilities), for the year ended September 30, 2016, and the related notes. Management's Responsibility for the Financial Statement Management is responsible for the preparation and fair presentation of this financial statement 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 the financial statement that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statement, 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 statement 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 statement. Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the statement of income referred to above presents fairly, in all material respects, the results of operations of International Links Miami / Melreese Country Club, (Golf Course Facilities) for the year ended September 30, 2016 in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the statement of income as a whole. The schedule of administrative expenses, schedule of food and beverage expenses, schedule of golf course maintenance expenses and schedule of golf course operations expense are presented for purposes of additional analysis and are not a required part of the statement of income. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the statement of income. The information has been subjected to the auditing procedures applied in the audit of the statement of income and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statement of income and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the statement of income as a whole. ("0 Varga /Piedra & Co., CPAS Miami, Florida January 10, 2017 (2) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB STATEMENT OF INCOME FOR THE YEAR ENDED SEPTEMBER 30, 2016 REVENUES: 2016 Golf Revenues $ 1,795,340 Range Revenues 236,454 Pro Shop Merchandise Revenue 326,719 Restaurant Revenues 967,839 Sales Tax Collected 193,222 TOTAL REVENUES $ 3,519,574 OPERATING EXPENSES: Administrative Expenses 315,398 Food and Beverage Expenses 911,397 Golf Course Maintenance Expenses 1,180,644 Golf Course Operations Expenses 1,017,108 TOTAL OPERATING EXPENSES $ 3,424,547 NET INCOME S 95,027 See Accompanying Notes (3) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk SUPPLEMENTARY INFORMATION Submitted into the public record for item(s) 4449 and 4450 on 07/1212010- - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2016 2016 Advertising $ 2,479 Automobile Expense 440 Bank Charges 26 Base Compensation — Charles Delucca Jr. 200,000 Computer Supplies and Expenses 130 Employee Leasing Cost 14,371 Delivery 550 Dues, Fees and Subscriptions 4,284 Equipment Repair 496 Insurance — Health 5,312 Legal and Accounting 60,300 Licenses and Taxes 3,408 Marketing Fees 3,454 Postage 23 Promotional Expense 473 Security 6,357 Stationery and Printing 814 Supplies 156 Telephone 576 Utilities 11,671 Waste 78 TOTAL ADMINISTRATIVE EXPENSES $ 315,398 See Accompanying Notes (4) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF FOOD AND BEVERAGE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2016 2016 Cable — Comcast $ 3,274 China, Glass and Silverware 1,901 Credit Card Costs 18,497 Employee Leasing Services 423,497 Employee Leasing Cost 79,305 Equipment Repair 10,888 Flowers and Decorations 127 Kitchen and Bar Supplies 18,744 Kitchen Gas 12,856 Paper and Disposables 184 Purchases 192,708 Purchases — Beverages 72,163 Purchases — Water 2,543 Sales Tax 53,705 Security 10,807 Stationery and Printing 122 Telephone 307 Uniforms 1,133 Utilities 13,130 Waste 694 Water and Sewer 2,480 Beginning Inventory 33,045 Ending Inventory ( 40,713) TOTAL FOOD AND BEVERAGE EXPENSES $ 911,397 See Accompanying Notes (5) Submitted into the public record for item(s) 4449 and 4450 on 07112/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE MAINTENANCE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2016 2016 Employee Leasing Services $ 520,624 Employee Leasing Cost 104,691 Equipment Repair 95,652 Fertilizer and Chemicals 177,478 Fuel and Lubricants 64,462 Golf Cart Repair 18,506 Grass, Seed, Soil and Sand 32,957 Grounds Repair 19,065 Insurance 35,515 Irrigation Repair 23,289 Maintenance and Repairs 68,406 Outside Services 27,858 Security 33,055 Small Tools 6,978 Supplies 32,981 Telephone 227 Uniforms 5,460 Utilities 32,096 Waste 2,161 Water and Sewer 9,889 Maintenance and Repairs — City Parks ( 107,800) Beginning Chemical Inventory 37,635 Ending Chemical Inventory ( 60,541) TOTAL GOLF COURSE MAINTENANCE $ 1,180,644 See Accompanying Notes (6) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE OPERATIONS EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2016 2016 Advertising $ 265 Cable — Golf Operations 3 275 Commissions 2,530 Credit Card Costs 47,931 Driving Range Supplies 13,675 Employee Leasing Services 412,816 Employee Leasing Cost 114,972 Equipment Repair 2,241 Golf Cart Lease 56,637 Insurance 11,838 Marketing Fees 115 Pro Shop Merchandise 180,615 Purchases — Discounts ( 2,681) Sales Tax 139,518 Security 13,349 Stationery and Printing 1,291 Supplies 4,482 Telephone 485 Uniforms 629 Utilities 16,376 Water and Sewer 5,933 Waste 271 Beginning Inventory 74,710 Ending Inventory ( 84,165) TOTAL GOLF COURSE OPERATIONS $ 1,017,108 See Accompanying Notes (7) Submitted into the public record for item(s) 4449 and 4450 on 07112/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2016 NATURE OF OPERATIONS International Links Miami / Melreese Country Club is an 18-hole championship public golf course and restaurant, located in the City of Miami, Florida. The golf course and restaurant are open to the public on a daily basis. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition The golf course and restaurant recognize revenues from daily green fees, tournaments, golf range activities, restaurant and pro shop sales once the service has been provided. Inventory Inventory is valued at lower of cost or market using the first -in, first -out method. Use of Estimates The preparation of financial statements in conformity with accounting principles accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those reported by management. Advertising Advertising costs are expensed as incurred. Advertising expense for the year ended September 30, 2016 was $2,744. (8) Submitted into the public record for item(s) 4449 and 4450 on 0711212018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2016 INVENTORIES Inventories consist of the following at September 30, 2016. Food and Beverage — Restaurant $ 40,713 Chemical and Fertilizer 60,541 Pro Shop Merchandise 84,165 $ 185,419 REPAIR AND MAINTENANCE - CITY PARKS The golf course maintains various recreational parks within the City of Miami. The estimated cost of maintaining these parks is $107,800, which has been reflected as a reduction adjustment to golf course maintenance expenses. PROFESSIONAL SERVICES AGREEMENT The City of Miami has a professional services agreement with Delucca Enterprises, Inc. in effect at September 30, 2012 through September 30, 2021 with a base compensation of $200,000. This agreement includes increases of 3% during any fiscal year under certain conditions. The agreement also provides for incentive compensation. INCOME TAXES The Company, with the consent of its shareholders, has elected to be an "S" Corporation under the Internal Revenue Code and similar state law. Instead of paying corporate taxes, the shareholders are taxed individually on the Company's taxable income. Therefore, no provision or liability for federal and state taxes has been made. The following table summarizes the open tax years for each major jurisdiction: Jurisdiction Open Tax Years Federal December 31, 2012- December 31, 2016 State Sales Tax September 30, 2015-December 31, 2016 (9) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2016 SALES TAX AUDIT Delucca Enterprises, Inc. ("Delucca"), the management company of the golf course, has a pending sales tax audit from the State of Florida, Department of Revenue as of September 30, 2016 for the period of examination from September 1, 2012 through August 31, 2015. The Department has proposed an assessment of additional State sales tax in the total amount of $163,125. Delucca has filed an informal protest of the balance of the proposed assessment. Delucca intends to pursue all available remedies to contest the net assessment. The attorney's for Delucca are unable to evaluate the likelihood of an unfavorable outcome at this time. OPERATING LEASES The golf course leases golf carts under a noncancelable operating lease for a term of five years. Total lease expense charged to golf course operations for the fiscal year ended September 30, 2016 was $56,637. The following is a schedule of the future minimum lease payments of the noncancelable operating lease. Years ending September 30: Amount 2017 $ 50,100 2018 50,100 2019 50,100 REMEDIATION COSTS During the period from October 10, 2015 to September 30, 2016 the following cost of renovation and improvements were incurred. Golf Course $ 459,541 (10) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2016 TRANSACTIONS WITH AFFILIATE Management purchases its range golf balls from and contracts an affiliate, related by common ownership, for the trimming of the golf course trees and other maintenance. SUBSEQUENT EVENTS Management has evaluated, for disclosure, subsequent events through January 10, 2017, the — date the financial statements were available to be issued. There are no subsequent events requiring disclosures. Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk DeLucca Enterprises 1802 NW 37th Avenue Miami, FL 33125 4/9/2017 Daniel Newhoff, Invoice It 000158 Balance of pay due to Charles DeLucca Year End 2015-2016 — 30% Payable to DeLucca Enterprises, Inc. (Charles DeLucca) $95,027.00 —Net Profit $28,508.10 = 30% of Net Profit Due to DeLucca Enterprises, Inc. Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk RECEIVED JUL 1 12018 BY: INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB STATEMENT OF INCOME AND SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2017 Submitted into the public record for item(s) 4449 and 4450 on 07/1212018. - City Clerk TABLE OF CONTENTS PAGES Independent Auditor's Report 1— 2 Financial Statements: Statement of Income Supplementary Information Schedule of Administrative Expenses Schedule of Food and Beverage Expenses Schedule of Golf Course Maintenance Expenses Schedule of Golf Course Operations and Driving Range Expenses 3 4 5 6 7 Notes to Financial Statements 8 —11 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk VARGAS, PIEDRA & CO. CERTIFIED PUBLIC ACCOUNTANTS MEMBERS AMERICAN AND FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Board of Directors Delucca Enterprises, Inc. Miami, Florida ONE DATRAN CENTER 9100 SOUTH DADELAND BLVD. SUITE 912 MIAMI, FLORIDA 33156 TELEPHONE (305) 671-0003 FAX (305) 671-6263 We have audited the accompanying statement of income of International Links Miami / Melreese Country Club, (Golf Course Facilities), for the year ended September 30, 2017 and the related notes. Management's Responsibility for the Financial Statement Management is responsible for the preparation and fair presentation of this financial statement 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 the financial statement that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statement, 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 statement 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 statement. Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the statement of income referred to above presents fairly, in all material respects, the results of operations of International Links Miami / Melreese Country Club, (Golf Course Facilities) for the year ended September 30, 2017 in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the statement of income as a whole. The schedule of administrative expenses, schedule of food and beverage expenses, schedule of golf course maintenance expenses and schedule of golf course operations expense are presented for purposes of additional analysis and are not a required part of the statement of income. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the statement of income. The information has been subjected to the auditing procedures applied in the audit of the statement of income and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statement of income and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the statement of income as a whole. VargasP/Piedra & Co., CPAs Miami, Florida January 31, 2018 (2) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB STATEMENT OF INCOME FOR THE YEAR ENDED SEPTEMBER 30, 2017 REVENUES: 2017 Golf Revenues $ 1,787,789 Range Revenues 226,974 Pro Shop Merchandise Revenue 356,080 Restaurant Revenues 1,028,747 Sales Tax Collected 196,375 TOTAL REVENUES $ 3,595,965 OPERATING EXPENSES: Administrative Expenses 331,794 Food and Beverage Expenses 1,009,466 Golf Course Maintenance Expenses 1,185,929 Golf Course Operations Expenses 1,067,563 TOTAL OPERATING EXPENSES $ 3,594,752 NET INCOME $ 1,213 See Accompanying Notes (3) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2017 2017 Accounting $ 52,125 Advertising 5,580 Base Compensation — Charles Delucca Jr. 200,000 Employee Leasing Cost 12,232 Delivery 541 Dues, Fees and Subscriptions 5,569 Equipment Repair 398 Legal 7,500 Licenses and Taxes 2,253 Maintenance and Repairs 3,670 Marketing Fees 616 Postage 1,042 Promotional Expense 6,050 Security 6,041 Stationery and Printing 12,982 Telephone 571 Utilities 14,624 TOTAL ADMINISTRATIVE EXPENSES $ 331,794 See Accompanying Notes (4) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF FOOD AND BEVERAGE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2017 2017 Advertising $ 250 Cable — Comcast 3,366 China, Glass and Silverware 199 Credit Card Costs 20,582 Employee Leasing Services 449,348 Employee Leasing Cost 95,880 Equipment Repair 10,995 Guest and Cleaning Supplies 827 Kitchen and Bar Supplies 15,942 Kitchen Gas 16,902 Kitchen Laundry 775 Menus and Tickets 180 Purchases - Food 216,502 Purchases — Beverages 79,755 Purchases — Water 1,589 Beginning Inventory 40,714 Ending Inventory ( 33,330) Sales Tax 58,024 Security 10,327 Stationery and Printing 137 Telephone 225 Uniforms 491 Utilities 16,451 Water and Sewer 3,335 TOTAL FOOD AND BEVERAGE EXPENSES $ 1,009,466 See Accompanying Notes (5) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE MAINTENANCE EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2017 2017 Employee Leasing Services $ 507,301 Employee Leasing Cost 108,771 Equipment Rental 575 Equipment Repair 88,626 Fertilizer and Chemicals 163,834 Beginning Chemical Inventory 60,541 Ending Chemical Inventory ( 46,386) Fuel and Lubricants 64,077 Golf Cart Repair 16,730 Grass, Seed, Soil and Sand 29,742 Grounds Repair 4,522 Insurance 52,408 Irrigation Repair 8,176 Maintenance and Repairs 57,271 Outside Services 35,780 Security 31,585 Small Tools 2,293 Supplies 38,201 Telephone 225 Travel 561 Tree Trimming 11,535 Uniforms 5,080 Utilities 40,216 Waste 1,430 Water and Sewer 13,869 Maintenance and Repairs — City Parks ( 111,034) TOTAL GOLF COURSE MAINTENANCE $ 1,185,929 See Accompanying Notes (6) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB SCHEDULE OF GOLF COURSE OPERATIONS EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2017 2017 Cable — Golf Operations $ 2,629 Credit Card Costs 48,992 Driving Range Supplies 15,151 Employee Leasing Services 447,177 Employee Leasing Cost 96,345 Equipment Repair 1,177 Golf Cart Lease 57,477 Insurance 17,469 Marketing Fees 465 Purchases - Pro Shop Merchandise 187,424 Purchases — Discounts ( 2,930) Beginning Inventory 84,165 Ending Inventory ( 72,241) Sales Tax 138,351 Security 12,686 Stationery and Printing 20 Supplies 3,862 Telephone 841 Uniforms 74 Utilities 20,108 Water and Sewer 8,321 TOTAL GOLF COURSE OPERATIONS $ 1,067,563 See Accompanying Notes (7) Submitted into the public record for item(s) 4449 and 4450 on O7112/2O16. - City Clerk SUPPLEMENTARY INFORMATION Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2017 NATURE OF OPERATIONS International Links Miami / Melreese Country Club is an 18-hole championship public golf course and restaurant, located in the City of Miami, Florida. The golf course and restaurant are open to the public on a daily basis. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition The golf course and restaurant recognize revenues from daily green fees, tournaments, golf range activities, restaurant and pro shop sales once the service has been provided. Inventory Inventory is valued at lower of cost or market using the first -in, first -out method. Use of Estimates The preparation of financial statements in conformity with accounting principles accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those reported by management. Advertising Advertising costs are expensed as incurred. Advertising expense for the year ended September 30, 2017 was $5,830. (8) Submitted into the public record for item(s) 4449 and 4450 on 07112/20118. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2017 INVENTORIES Inventories consist of the following at September 30, 2017. Food and Beverage — Restaurant Chemical and Fertilizer Pro Shop Merchandise REPAIR AND MAINTENANCE - CITY PARKS $ 33,330 46,386 72,241 $ 151,957 The golf course maintains various recreational parks within the City of Miami. The estimated cost of maintaining these parks is $111,034, which has been reflected as a reduction adjustment to golf course maintenance expenses. PROFESSIONAL SERVICES AGREEMENT The City of Miami has a professional services agreement with Delucca Enterprises, Inc. in effect at September 30, 2012 through September 30, 2021 with a base compensation of $200,000. This agreement includes increases of 3% during any fiscal year under certain conditions. The agreement also provides for incentive compensation. INCOME TAXES The Company, with the consent of its shareholders, has elected to be an "S" Corporation under the Internal Revenue Code and similar state law. Instead of paying corporate taxes, the shareholders are taxed individually on the Company's taxable income. Therefore, no provision or liability for federal and state taxes has been made. The following table summarizes the open tax years for each major jurisdiction: Jurisdiction Open Tax Years Federal December 31, 2012 - December 31, 2017 State Sales Tax September 30, 2015 -December 31, 2017 (9) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2017 OPERATING LEASES The golf course leases golf carts under a noncancelable operating lease for a term of five years. Total lease expenses charged to golf course operations for the fiscal year ended September 30, 2017 were $57,477. The following is a schedule of the future minimum lease payments of the noncancelable operating lease. Years ending September 30: Amount 2018 $ 50,100 2019 50,100 2020 50,100 REMEDIATION COSTS During the period from October 10, 2016 to September 30, 2017 the following cost of renovation and improvements were incurred. Golf Course $ 41,649 TRANSACTIONS WITH AFFILIATE Management purchases its range golf balls from and contracts an affiliate, related by common ownership, for the trimming of the golf course trees and other maintenance. HURRICANE IRMA Category 5 Hurricane Irma hit South Florida on September 10, 2017. The golf course was heavily impacted by rain before the storm hit South Florida. On September 9, 2017 the golf course was closed under a hurricane warning and reopened on September 14, 2017 for nine holes of play only. The total hurricane damage sustained was approximately $257,000. (10) Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB NOTES TO FINANCIAL STATEMENT YEAR ENDED SEPTEMBER 30, 2017 SUBSEQUENT EVENTS Management has evaluated, for disclosure, subsequent events through January 31, 2018, the date the financial statements were available to be issued. There are no subsequent events requiring disclosures. Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk DeLucca Enterprises 1802 NW 37th Avenue Miami, FL 33125 7/6/2017 Daniel Newhoff, Invoice # 000174 30% 2016-2017 Balance of pay due to Charles DeLucca Year End 2016-2017 — 30% Payable to DeLucca Enterprises, Inc. (Charles DeLucca) $1,213.00 —Net Profit $363.90 = 30% of Net Profit Due to DeLucca Enterprises, Inc. Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk RECEIVED JUL I 1 2018 BY - INTERNATIONAL LINKS MIAMI FINANCIAL STATEMENTS March 31, 2018 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk Vargas, Piedra & Co., CPA's 9100 S Dadeland Blvd Ste 912 Miami, FL 33156 305-671-0003 (305) 671-6263 FAX Independent Accountant's Compilation Report To the Board of Directors INTERNATIONAL LINKS MIAMI MIAMI, FL Management is responsible for the accompanying statement of income (loss) of INTERNATIONAL LINKS MIAMI as of March 31, 2018 for the 6 Months ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the AICPA. We did not audit or review the statement of income nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on this statement of income. Management has elected to omit substantially all of the disclosures required by accounting principles generally accepted in the United States of America. If the omitted disclosures were included in the statement of income, they might influence the user's conclusions about the Company's financial position and results of operations. Accordingly, the statement of income is not designed for those who are not informed about such matters. Varg Piedra & Co., CPA's April 26, 2018 Submitted into the public record for item(s) 4449 and 4450 on 07112/201B. - City Clerk 1 INTERNATIONAL LINKS MIAMI STATEMENT OF INCOME (LOSS) REVENUES GOLF REVENUES RANGE REVENUES PRO SHOP MERCHANDISE REVENUE RESTAURANT REVENUE SALES TAX COLLECTED TOTAL REVENUES OPERATING EXPENSES ADMINISTRATIVE EXPENSES FOOD AND BEVERAGE EXPENSES GOLF COURSE MAINTENANCE EXPENSES GOLF COURSE OPERATIONS AND REVENUE EXPENSES TOTAL OPERATING EXPENSES NET INCOME (LOSS) See Accountants' Comp lation Report 6 Months Ended March 31, 2018 1,060,646.74 132,115.80 189,386.27 574,221.32 109,487.99 2,065,858.12 150,210.00 525,240.15 548,643.96 567,723.74 1,791,817.85 $ 274,040.27 1 Submitted into the public record for item(s) 4449 and 4450 on 07n2/2O18. - City Clerk INTERNATIONAL LINKS MIAMI SCHEDULE OF ADMINISTRATIVE EXPENSES LEGAL AND ACCOUNTING ADVERTISING BANK CHARGES COMPUTER SUPPLIES AND EXPENSES DELIVERY AND POSTAGE DUES, FEES AND SUBSCRIPTIONS LEGAL FEES LICENSES AND TAXES POSTAGE & DELIVERY STATIONERY AND PRINTING EMPLOYEE LEASING SERVICE FEES BASE COMPENSATION - CD JR. SECURITY TELEPHONE UTILITIES EQUIPMENT REPAIR TOTAL ADMINISTRATIVE EXPENSES 6 Months Ended March 31, 2018 19,500.00 720.00 38.00 1,877.61 108.50 5,504.26 1,250.00 1,581.27 634.53 958.59 6,518.70 100, 000.00 3,112.14 340.79 7,668.11 397.50 $ 150,210.00 See Accountants' Compilation Report 2 Submitted into the public record for items) 4449 and 4450 on 07/1212018. - City Clerk 1 1 1 INTERNATIONAL LINKS MIAMI SCHEDULE OF FOOD AND BEVERAGE EXPENSES FOOD & BEVERAGE - CONTRACT LABOR INSURANCE - HEALTH MAINTENANCE AND REPAIRS SALES TAX UNIFORMS STATIONERY AND PRINTING SECURITY EMPLOYEE LEASING EMPLOYEE LEASING SERVICE FEES TELEPHONE UTILITIES CREDIT CARD COSTS CHINA, GLASS AND SILVERWARE KITCHEN AND BAR SUPPLIES PURCHASES -FOOD BEGINNING INVENTORY ENDING INVENTORY PURCHASES -BEVERAGES PURCHASES - WATER WATER & SEWER EQUIPMENT REPAIR KITCHEN GAS CABLE - COMCAST PAPER AND DISPOSABLES TOTAL FOOD AND BEVERAGE EXPENSES See Accountants' Compilation Report 6 Months Ended March 31, 2018 1,100.00 3,393.98 1,103.57 32, 560.44 674.76 126.06 5,386.01 228,348.92 40,196.37 134.52 8,626.64 10,610.07 1,477.87 12,552.17 121,835.94 33,330.32 (35,705.99) 38,753.18 785.40 1,782.97 4,092.10 12,073.11 1,102.14 899.60 $ 525,240.15 3 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018., - City Clerk 1 INTERNATIONAL LINKS MIAMI SCHEDULE OF GOLF COURSE MAINTENANCE EXPENSES 6 Months Ended March 31, 2018 MAINTENANCE - CONTRACT LABOR $ 5,200.00 INSURANCE 27,031.79 INSURANCE - HEALTH 6,929.56 MAINTENANCE AND REPAIRS 26,454.14 UNIFORMS 1,919.14 SECURITY 16,240.16 TELEPHONE 134.53 UTILITIES 21,087.32 FERTILIZER AND CHEMICALS 92,500.95 BEGINNING CHEMICAL INVENTORY 46,385.59 ENDING CHEMICAL INVENTORY (63,744.06) FUEL AND LUBRICANTS 34,436.90 SUPPLIES 15,312.19 GRASS, SEED, SOIL AND SAND 8,183.86 WATER & SEWER 8,171.93 EQUIPMENT REPAIR 25,545.54 GOLF CART REPAIR 10,106.39 IRRIGATION REPAIR 3,274.49 GROUNDS REPAIR 2,124.16 SMALL TOOLS 1,005.70 OUTSIDE SERVICES 18,235.52 EMPLOYEE LEASING 253,077.20 EMPLOYEE LEASING SERVICE FEES 44,908.46 WASTE 1,305.00 MAINTENANCE - CITY PARKS (57,182.50) TOTAL GOLF COURSE MAINTENANCE EXPENSES $ 548,643.96 See Accountants' Compilation Report 4 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk INTERNATIONAL LINKS MIAMI SCHEDULE OF GOLF COURSE OPERATIONS AND DRIVING RANGE EXPENSES ADVERTISING PRO SHOP MERCHANDISE PURCHASES - DISCOUNTS BEGINNING INVENTORY ENDING INVENTORY INSURANCE INSURANCE - HEALTH SALES TAXES SUPPLIES STATIONERY & PRINTING SECURITY TELEPHONE UTILITIES CREDIT CARD COSTS GOLF CART LEASE DRIVING RANGE SUPPLIES EMPLOYEE LEASING EMPLOYEE LEASING SERVICE FEES RENTAL CLUBS WATER & SEWER EQUIPMENT REPAIR CABLE - GOLF OPERATIONS TOTAL GOLF COURSE OPERATIONS AND DRIVING RANGE EXPENSES See Accountants' Compilation Report 5 6 Months Ended March 31, 2018 500.00 122, 544.74 (2,414.82) 72,240.88 (93,298.78) 9,010.61 25,575.77 76,927.55 2,598.90 550.59 6,630.87 286.98 10,543.66 25,051.95 25,050.00 5,285.15 233,626.41 40,413.26 250.00 4,903.16 344.75 1,102.11 $ 567,723.74 Submitted into the public record for item(s) 4449 and 4450 on 07/12/2018. - City Clerk I