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HomeMy WebLinkAboutSubmittal - Lourdes Blanco - Speaker NotesSubmitted into the public record or item(s) Fa. �- on IQ( t 1 1 I �? City Clerk Good Morning Mr. Chairman Good Morning Commissioners I am here to speak with regards item FR 1 Lourdes Blanco, Executive Director Miami Sports and Exhibition Authority 1. I was appointed Executive Director on December 14, 2014, and Executive Director on July 21, 2015. 2. 1st issue I encounter, Cashier's Checks presented by Mr. Vega-Penichet for rent payments were never deposited in the bank. Kirk Menendez says Aldo Bustamante; Department of Real Estate is holding the checks. Kirk Menendez delivered the cashier's checks 4 months later. 3. Heliport rent payments were in arrears for 11/2 years. 4. MSEA had no bank accounts to deposit rent payments. 5. I notice the Watson Island Heliport agreements are an integral part of each other. If one fails, the others fail. The Amended Interlocal Agreement and the Joint Participation Agreement incorrectly joins both tenants into a Watson Island Air Transportation facility that does not exist. 6. I receive a letter from FDOT explaining in detail they will no longer support nor fund the Heliport project reallocating the grant funds under the JPA. 7. I begin to ask questions to Asst. City Attorney George Wysong, and City Attorney Victoria Mendez. I don't receive any answers. 8. Financial statements ending in fiscal year 2016 show the Heliport is going to be constructed with grant funds from the FDOT and the funds for both tenants are restrictive. I question the restriction on both accounts. External Auditors say MSEA must correct, amend or discard the Watson Island Heliport agreements that I am relying on to be the existing lease agreements that Aldo Bustamante and the City provide me. I request for a meeting with the CFO, Budget Director, and Senior Assistant City Attorney for a legal opinion in reference with the Watson Island Heliport lease agreements. Senior Assistant City Attorney gives a legal opinion that agrees with the External Auditors. 9. Then, Mr. Vega-Penichet starts asking me questions I can't answer, because I never prepared any documentation that was sent to the FDOT or to the FAA in relationship with the grant. All documentation was prepared by the Department of Real Estate. 10. From here on Assistant City Attorney George Wysong and City Attorney Victoria Mendez don't pay attention to what I am saying and ignore my many pleadings for the agreements to be corrected, changed or plainly disregarded. I decide to inform all Board Members I will not sign financial statements on behalf of MSEA that I consider to be deceiving and improper. 11. Anthony Brunson External Auditor request again that I sign a Management Representation Letter covering the MSEA Audit for fiscal year ending in 2017. This document says, all documents that I have presented to Mr. Brunson to conduct the Audit are documents without fraudulent misrepresentation, free of material defect whether intentional or not. Before signing the Management Representation Letter, I sent an email to City Attorney Victoria Mendez, y(0,56—Stibrki*41-- Lauer/CT GlakIco— S .kie}- a/�. L\-e-c).5 C LCrC\ g C(4-2-° requesting confirmation whether the Watson Island Heliport Agreements are valid and enforceable. Until today this email remains unanswered. 12. MSEA's Financial Statements for Fiscal Year ending in 2017 with significant deficiencies were never discussed and were never approved by the MSEA Board. 13. I have retained a forensic accounting firm. I respectfully request that you do the same before you decide to abolish MSEA, to avoid catastrophic financial consequences to the City and to the MSEA Board of Directors. 14. For the Chief purpose for which the Board hired me, is the same reason for which I am been defamed and retaliated against. Submitted into the p record f r items s /4//�// City Clerk on 'CaS-e 2 01 Blanco, Lourdes Submitted into the ubli C recordf9r itt m(s) on !-0df'/r/V city Lien( From: Blanco, Lourdes Sent: Tuesday, January 30, 2018 5:28 PM To: Mendez, Victoria Cc: City Manager Office; Blanco, Lourdes; Suarez, Francis (Mayor); 'Anthony Brunson' Subject: Final Draft MSEA Financial Statements/Representation Letter Attachments: Representation Letter-2017.docx; MSEA Financial Statements 2017 1-30-18 FINAL DRAFT.docx Good Afternoon, Madam City Attorney, Victoria Mendez, Mr. Anthony Brunson, CPA, external Auditor is concluding the Audit for MSEA FY 2016-2017. Mr. Brunson is requesting that I sign a Management Representation Letter dated January 15th, 2018, on behalf of MSEA.(attached). Please confirm the validity and enforceability of all contracts and agreements reflected in the final draft of MSEA Basic Financial Statements dated September 30`h , 2017, with Independent Auditor's Report thereon. Regards, Lourdes Blanco Executive Director Miami Sports and Exhibition Authority 1 ''CA 13 Blanco, Lourdes Submitted )i(nto the p jcl rprffon n! it ` ! ! cl (� City Clerk i From: Blanco, Lourdes Sent: Monday, February 05, 2018 11:03 PM To: Mendez, Victoria Cc: Casamayor, Fernando; Ruiz, Joseph A.; Suarez, Francis (Mayor); Paschal, Erica; Daniel, Munirah; Anthony Brunson; Rose, Christopher; Gonzalez, Emilio T.; Blanco, Lourdes Subject: FW: Final Draft MSEA Financial Statements/Representation Letter Attachments: Representation Letter-2017.docx; MSEA Financial Statements 2017 1-30-18 FINAL DRAFT.docx Good Evening, Ms. Mendez, Please read email below. If you confirm the enforceability of all contracts and agreements reflected in the final draft of MSEA Basic Financial Statements dated September 30`h , 2017, with Independent Auditor's Report thereon, I can sign the Management Representation Letter. (both attached) Please let me know, part of the Management Representation Letter is signed.( the part of Financial Operations for FY 2016-2017 of the MSEA). Best Regards, Lourdes Blanco Executive Director Miami Sports and Exhibition Authority From: Blanco, Lourdes Sent: Tuesday, January 30, 2018 5:28 PM To: Mendez, Victoria Cc: City Manager Office; Blanco, Lourdes; Suarez, Francis (Mayor); 'Anthony Brunson' Subject: Final Draft MSEA Financial Statements/Representation Letter Good Afternoon, Madam City Attorney, Victoria Mendez, Mr. Anthony Brunson, CPA, external Auditor is concluding the Audit for MSEA FY 2016-2017. Mr. Brunson is requesting that I sign a Management Representation Letter dated January 15th, 2018, on behalf of MSEA.(attached). Please confirm the validity and enforceability of all contracts and agreements reflected in the final draft of MSEA Basic Financial Statements dated September 30`h , 2017, i 19P ?GiAp_ a_r with Independent Auditor's Report thereon. Regards, Lourdes Blanco Executive Director Miami Sports and Exhibition Authority Submittegdrecord d into the b icl on fail/76s) City Clerk 2 r` VAS o4. 1 3 Blanco, Lourdes Submitted into the p u 1' c reenvlf i g (s) on /v7//`ice City Clerk From: Blanco, Lourdes Sent: Monday, February 05, 2018 10:39 PM To: Mendez, Victoria Cc: Casamayor, Fernando; Ruiz, Joseph A.; Suarez, Francis (Mayor); Paschal, Erica; Daniel, Munirah; Anthony Brunson; Wysong, George; Rose, Christopher; Gonzalez, Emilio T.; Blanco, Lourdes Subject: RE: MSEA Audit Follow Up Flag: Follow up Flag Status: Flagged Good Evening, Ms. Mendez, I am not delegating this task. I have already signed the financial operations part of this document, as per my email here below. Mr. Brunson wrote a finding in the Audit report. This finding is in reference with grants, contractual agreements and agreements. He wrote "tenants who hold leases with MSEA potentially have had their operating and development rights impacted." I am not responsible for this finding in the Draft Basic Financial Statements, this finding is not within the scope of my duties and responsibilities as Executive Director of MSEA, I am not signing this part of the Management Representation Letter, because I am not an Attorney and this is a legal document. Once Mr. Emilio Gonzalez, City Manager delegates the person who is going to sign the legality of this document, Mr. Brunson will certify the Basic Financial Statements for the MSEA. Otherwise, you can confirm the validity and enforceability of the contracts, agreements, grants, and other contractual documents referred to in the Draft Basic Financial Statements, and I will sign the legal part of the Management Representation Letter, is up to you. I requested this from you in a separate email, before Mr. Brunson finished the Final Draft Basic Financial Statements client response, but you never responded to this request. Best Regards, Lourdes Blanco Executive Director Miami Sports and Exhibition Authority 1 �� e s'o o-r r3 From: Mendez, Victoria Sent: Monday, February 05, 2018 10:05 PM To: Blanco, Lourdes Cc: Casamayor, Fernando; Ruiz, Joseph A.; Suarez, Francis (Mayor); Paschal, Erica; Daniel, Munirah; Anthony Brunson; Wysong, George; Rose, Christopher; Gonzalez, Emilio T. Subject: Re: MSEA Audit Submitted into the p} ?jiP record fop itep(s) (- (� on (9///`79 City Clerk Perfect! Thank you so much Lourdes. Since you are delegating that task, the Manager will assign someone to sign for you. Thanks again. Victoria Mendez, City Attorney Board Certified, City, County and Local Government City of Miami Office of the City Attorney Telephone: 305-416-1832 Facsimile: 305-4 16-1801 E-mail: vmendez' miami.ov.com Assistant: Marta Gomez 05) 416-1844 On Feb 5, 2018, at 9:44 PM, Blanco, Lourdes <1ourdesblanco@miamigov.com> wrote: Good Evening, Mr. Casamayor, As per our conversation today: I wish to clarify the following for you: 1. Please read attached MSEA Minutes dated October 3, 2017. As per resolution of the MSEA Board of Directors the Finance Department was to be in charge of the MSEA Audit, signing the Audit Engagement Letter. 2. I will sign the Management Representation Letter part of the financial operations Audit results. Someone else needs to sign the part of the Management Representation Letter that refers to grants, contractual agreements, agreements, the legal aspect of these documents. Mr. Brunson will accept the document signed by the City Manager, the City Attorney or someone from Finance. Mr. Brunson and I are waiting to know who from the City of Miami Administration is going to sign the Management Representation Letter. I hope this helps you understand. Best Regards, 2 Lourdes Blanco Executive Director Miami Sports and Exhibition Authority <MSEA Minutes October 3 2017.doc> Submitted into the the record fpr on l4///111 1 City Clerk Blanco, Lourdes From: Blanco, Lourdes Sent: Tuesday, February 06, 2018 1:23 AM To: Anthony Brunson Cc: Casamayor, Fernando; Paschal, Erica; Daniel, Munirah; Ruiz, Joseph A.; Suarez, Francis (Mayor); Mendez, Victoria; Rose, Christopher; Gonzalez, Emilio T.; Blanco, Lourdes Subject: Management Representation Letter MSEA Attachments: IMG_2034.JPG; ATT00001.txt; IMG_2035.JPG; ATT00002.txt; IMG_2036.JPG; ATT00003.txt; IMG_2037.JPG; ATT00004.txt Submitted into the l/ City Mr. Brunson, As per your request, please find a copy of the Management Representation Letter signed by MSEA. Ms. Mendez will work with you to figure out what is left to sign. As soon as the other line is signed, I will mail to you the signed original document. The Final Draft Financial Statements with the final corrections was received today. Thanks god you realized something was not right. I am having problems with the email. Your payment will be effected, as soon as I receive the Certified Basic Financial Statements. Thank you and your staff, for your help throughout the MSEA Audit. 1 GGL��t�G sports & exhibition authority January 15, 2018 Anthony Brunson, P.A. 333 Las Olas Way, CU4 Fort Lauderdale, Florida 33301 Submitted into the pu c record fgr it (s) on /O////g' . City Clerk Dear Sirs: This representation letter is provided in connection with your audits) of the financial statements of Miami Sports and Exhibition Authority(the''Authority"), a component unit of the City of Miami, Honda (the `City") which comprise the respective financial position of the governmental activities, the business -type activities, and each major fund, and the aggregate remaining fund information as of September 30 2017. and the respective changes in financial position and, where applicable, cash flows for the September 30. 2017 then ended. and the related notes to the financial statements, for the purpose of expressing opinions as to whether the financial statements are presented fairly. in all material respects. in accordance with accounting principles generally accepted in the United States of America (U.S GAAP) Certain representations in this letter are described as being limited to matters that are material Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. We confirm, to the best of our knowledge and belief, as of January 15, 2018, the following representations made to you during your audit. Financial Statements 1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated December 7, 2017, including our responsibility for the preparation and fair presentation of the financial statements in accordance with U.S. GAAP and for preparation of the supplementary information in accordance with the applicable criteria. 2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP and include all properly classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity. 3) We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. MIAMI SPORTS & EXHIBITION AUTHORITY 3500 Pan American Drive, Nharru, Ft 33133 ' (305) 4 it 1105 §413111 ` € OP the a1Ci mcgrd f t fs) on I0/////� City Clerk • 4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 5) Significant assumptions we used in making accounting estimates, including those measured at fair value, are reasonable 6) Related party relationships and transactions, including revenues, expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties have been appropriately accounted for and disclosed in accordance with U.S. GAAP 7) The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements as a whole for each opinion unit. A list of the uncorrected misstatements is attached to the representation letter. 8) The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in accordance with U S. GAAP. Information Provided 9) We have provided you with. a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters b) Additional information that you have requested from us for the purpose of the audit. c) Unrestricted access to persons within the Authority from whom you determined it necessary to obtain audit evidence. d) Minutes of the meetings of City of Miami or summaries of actions of recent meetings for which minutes have not yet been prepared. 10) We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have no knowledge of any fraud or suspected fraud that affects the Authority and involves— . Management, • Employees who have significant roles in internal control, or • Others where the fraud could have a material effect on the financial statements. 11) We have no knowledge allegations by employees, mer empor a yee�, regudlators affecting r others.Authority's financial statements communicated 12) We have no knowledge of instances of noncompliance or suspected noncompliance with provisions of laws, regulations, contracts,orgrant agreements, or abuse, whose effects should be considered when preparing financial statements 13) We have disclosed to you all whknown n n preparing the possible o siblel litigastatetion, claims, and assessments whose effects should be considered 14) We have disclosed to you hef ide tiich wofe atthe e Authority's related parties and all the related party relationships and transactions aware. Government -specific 15) There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices 16) We have identified to you any previous audits, attestation engagements, gen ,adother studies related to the audit objectives and whether recommendationsaeenster 17) The Authority has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or equity. � m � 8ohmi'��"t1tnthe mec on /0/////1 ^ City Clerk 18)VVe are responsible for oo-`:� *�— ��r�-n aQreenlen�app|�ab|8to Ls -c.�.c� �` c' .e:� � - a aod deL��rn���.�s �''' ��u� �n� � "-~ on prov�mnS�n a�ec.hcac�v��u.,s��a�8e'^nd� ---- 19)VVe have identified and disdoned to you ai/ mntances 1,71, have o/ are likely to have Occurred, offraud and nocco—'� anoewith provmionoc^|a�sand ,egum�/nathat webe�evehave a material effect on the f, s�aUennenUs or uthe� data to the audit objobjectives,0Loe��� and any other instances that aarran\the aoenUmnofthcs� -,anzed - . ' �nngovernance 20) We have identified and d/nc|osed to you all instances x!--h have occurred or are likely to have 0uoun'ed, of noncompliance with provisions ofcontracts and grant agreements that we believe have nma0ana\ effect on the determination of financial statement amounts or other financial data significant tothe audit objectives, 21)VVe have identified and disclosed to you all instances that have occurred or are likely to have occurred, of abuse that could be quantitatively or quo|i&atwe|y material to the financial statements or other financial data significant tuthe audit objecbves 22) There are no violations or possible violations of budget ordinances, laws and regulations (/nck»d/nQ those pertaining to adopting, approving, and amending budgets). provisions ofcontracts and grant agreannenta, tax or debt |imits, and any related debt covenants whose effects should be considered for disclosure in the financial statements, or an a basis for recording a loss contingency or for reporting onnoncompliance, 23) The Authority has satisfactory title to all owned assets, and there are no liens orencumbrances on such assets nor has any asset been pledged aocollateral. 24)The Authority has complied with all aspects mfcontractual agneemanks that would have material effect onthe financial statements inthe event ufnoncompliance 25) The financial statements include all component units as well asjoint ventures with an equity interest. and properly disclose all other joint ventures and other related organizations 26)Thi� financial statements properly classify all funds and activities in aoco,dance with (3ASBStatement No 34 27) All funds that meet the quantitative criteria in (3ASQS Nos 34 and 37 for presentation as major are identified and presented as such and all other funds that are presented as major are part/cu|ar!y important tofinancial statement users 28)Componen\y of net position (net investment m capital assets. r*stnc1eU, and unrestricted) and classifications of fund balance (nnnspendab|e /estocted' comm/ttod, assigned, and unassigned) are properly classified and, if applicable. approved 29) )nvestment», derivative instruments, and land and other real estate held byendowments are properly valued. 30) Provisions for unooUecbh|ereceivables have been properly identified and recorded. 3l) Expenses have been appropriately classified in or allocated to functions and programs in the. statement ofactivities, and allocations have been made onareasonable basis 32) Revenues are appropriately classified /n the statement of activities within program revenues. general rexenueo, contributions to term or permanent endowments, or contributions to permanent n/nv principal. reported.33) Interfund. internal, and intra-entity activity and balances have been appropriately classified and borisk and 34) Deposits and investment securities and derivative instruments are properly classified as �����I'~����^� a/upvpn''°=-~~~� reported. and 35) Capital assets, including infrastructure and intangible assehs, are properly capitalized, ne' � � ifapplicable. depreciated _ ... '^r.' _ 'In -lifted into the d ft/97V on 12I hlic g. City Clerk 36) We have appropriately disclosed the Authority's policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available and have determined that net position is properly recognized under the policy. 37) We are following our established accounting policy regarding which resources (that is, restricted, committed, assigned, or unassigned) are considered to be spent first for expenditures for which more than one resource classification is available. That policy determines the fund balance classifications for financial reporting purposes. 38) We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed guidelines and the methods of measurement and presentation have not changed from those used in the prior period We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RS1 39) With respect to the Budgetary Comparison Information a) We acknowledge our responsibility for presenting the Budgetary Comparison Information in accordance with accounting principles generally accepted in the United States of America, and we believe the Budgetary Comparison Information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. The methods of measurement and presentation of the Budgetary Comparison Information have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. b) If the Budgetary Comparison Information is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the supplementary information no later than the date we issue the supplementary information and the auditor's report thereon. c) Signature. Title L /EC'Ji EN( (t Signature: Title: Lourdes Blanco, Executive Director of Miami Sports at Exhibition ority is not responsib c for the validity and enforceability of the contracts, agreements, grant. , and other contractual documents referred to in the Basic Financial Statements, of Miami Sports and Exhibition Authority, dated September 30"s. 2017, (With independent Auditor's Report Thereon), This, is not within the scope of the Executive Director duties and responsibilities.