HomeMy WebLinkAboutSubmittal-Commissioner Reyes-Financial Statements for City's operation at Melreese Golf Course Fiscal Years ending September 30, 2012-18 (Tab A)MEMORANDUM IZEC "' I
TO: Honorable Members of the City Commission JUL 1 12018
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 09/30/2014—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 07/1212018. - 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
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.
n
Vargas, P.Vdra & Co., CPAS
Miami, Florida
January 17, 2013
Submitted into the public record for item(s)
2 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 I MELREESE COUNTRY CLUB
INCOME STATEMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2012
REVENUES: 2012
$ 1,700,836
Golf Revenues
Restaurant Revenues
829,189
Range Revenues
171,283
Pro Shop Merchandise Revenue
213,749
Gift Certificate Revenue
515
Tennis Course Revenues
3,940
Sales Taxes Collected
158.945
TOTAL REVENUES
$ 3,078,457
OPERATING EXPENSES:
Administrative Expenses
275,699
Food and Beverage Expenses
878,645
Golf Course Maintenance Expenses
979,374
Golf Operations and Driving Range Expenses
779,832
TOTAL OPERATING EXPENSES
$ 2,913,550
NET INCOME
$ 164,907
SEE INDEPENDENT AUDI
u mi a in o 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
Advertising
Automobile Expense
Base Compensation - Delucca Enterprises, Inc.
Computer Supplies and Expenses
Delivery
Dues and Fees
Equipment Repair
Legal and Accounting
Licenses and Taxes
Marketing Fees
Miscellaneous
Security
Stationery and Printing
Telephone
Utilities
TOTAL ADMINISTRATIVE EXPENSES
SEE INDEPENDENT AUDITOR'S
REPORT 4
2012
352
1,369
200,000
1,470
203
6,295
41
42,200
4,433
7,051
2,010
5,084
4,233
955
3
2756,019
Submitted into the public record for item(s)
4449 and 4450 on 07112/2018. - City Clerk
INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB
SCHEDULE OF FOOD AND BEVERAGE EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2012
Advertising
Comcast - Cable
Employee Leasing Services
Employee Leasing Costs
Equipment Repair
Flowers and Decorations
Guest and Cleaning Supplies
Kitchen and Bar Supplies
Purchases - Beverage
Purchases - Food
Purchases- Water
Sales Taxes
Security
Telephone
Uniforms
Utilities
Waste
Water and Sewer
Beginning Inventory - Restaurant
Ending Inventory - Restaurant
TOTAL FOOD AND BEVERAGE EXPENSES
SEE INDEPENDENT AUDITOR'S REPORT
5
2012
1,540
3,747
373,429
77,453
1,819
128
1,284
41,446
64,152
185,259
1,671
113,805
9,105
868
32
14
660
2,810
31,034
(31,611)
Submitted into the public record for item(s)
4449 and 4450 on 0711212018. - 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 items)
4449 and 4450 on 071121201 8. - City Clerk
INTERNATIONAL LINKS MIAMI I MELREESE COUNTRY CLUB
SCHEDULE OF GOLF OPERATIONS AND DRIVING RANGE EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2012
Advertising
Commissions
Credit Card Costs
Driving Range Supplies
Employee Leasing Services
Employee Leasing Costs
Equipment Repair
Golf Course Lease
Insurance
Marketing Fees
Purchases - Golf Balls
Purchases - Golf Clubs
Purchases - Merchandise
Purchases - Other
Purchases - Discounts
Sales Taxes
Security
Supplies
Telephone
Uniforms
Waste
Water and Sewer
Beginning Inventory - Pro Shop
Ending Inventory - Pro Shop
TOTAL GOLF OPERATIONS AND DRIVING RANGE
SEE INDEPENDENT AUDITOR'S REPORT
7
2012
348
691
59,111
7,344
379,770
78,655
596
54,831
9;957
928
23,505
3,032
86,184
6,785
(2,916)
45,140
11,331
64
1,488
761
132
7,986
46,863
(42,754)
$ 779832
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 $ 40,786
Food and Beverage - Restaurant 31,611
Pro Shop Merchandise 42,754
$ 115,151
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.
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.
Submitted into the public record for item(s)
9 4449 and 4450 on 07/12/2018. - City Clerk
DeLucca Enterprises
1802 NW 3 7th 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
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 0711212019- - City Clerk
INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB
SCHEDULE OF ADMINISTRATIVE EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Advertising
Automobile Expense
Bank Charges
Base Compensation — Charles Delucca Jr.
Employee Leasing Cost
Delivery
Dues, Fees and Subscriptions
Legal and Accounting
Licenses and Taxes
Maintenance and Repairs
Maintenance and Repairs (Non -Reimbursable)
Marketing Fees
Miscellaneous
Postage
Security
Stationery and Printing
Supplies
Telephone
Training — Administrative
TOTAL ADMINISTRATIVE EXPENSES
See Accompanying Notes and Independent Auditor's Report
(5)
2013
$ 1,056
182
73
200,000
7,001
325
6,838
54,786
4,057
2,050
5,000
4,454
566
12
5,836
11,233
50
1,676
350
S 305,545
Submitted into the public record for itern(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
Advertising
Cable — Comcast
China, Glass and Silverware
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Flowers and Decorations
Guest and Cleaning Supplies
Kitchen and Bar Supplies
Purchases
Purchases — Beverages
Purchases — Kitchen Supply
Purchases — Water
Sales Tax
Security
Telephone
Uniforms
Water and Sewer
Beginning Inventory
Ending Inventory
TOTAL FOOD AND BEVERAGE EXPENSES
See Accompanying Notes and independent Auditor's Report
(6)
2013
$ 485
3,723
300
391,084
67,644
3,714
38
855
29,678
195,575
58,779
45
1,502
49,782
9,921
662
590
1,974
31,611
( 33,207)
$ 814,755
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
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Fertilizer and Chemicals
Fuel and Lubricants
Golf Cart Repair
Grass, Seed, Soil and Sand
Grounds Repair
Insurance
Irrigation Repair
Maintenance and Repairs — City Parks
Maintenance and Repairs
Outside Services
Security
Small Tools
Supplies
Telephone
Travel
Uniforms
Water and Sewer
Beginning Chemical Inventory
Ending Chemical Inventory
TOTAL GOLF COURSE MAINTENANCE
See Accompanying Notes and Independent Auditor's Report
(7)
2013
$ 452,068
92,738
87,519
191,169
100,272
7,972
22,608
25,251
36,951
21,300
( 92,539)
6,115
36,170
30,345
3,908
27,247
662
1,599
4,119
9,050
40,786
( 30,055)
S 1,075,255
Submitted into the public record for itern(s)
4449 and 4450 on 0711212018. - City Clerk
INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB
SCHEDULE OF GOLF COURSE OPERATIONS EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Advertising
Commissions
Credit Card Cost
Driving Range Supplies
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Golf Cart Lease
Insurance
Pro Shop Merchandise
Purchases — Golf Balls
Purchases — Golf Clubs
Purchases — Other
Purchases — Discounts
Sales Tax
Security
Stationery and Printing
Supplies
Telephone
Utilities
Water and Sewer
Beginning Inventory
Ending Inventory
TOTAL GOLF COURSE OPERATIONS
See Accompanying Notes and Independent Auditor's Report
(8)
2013
$ 2,628
935
56,319
20,140
370,081
98,022
128
55,277
12,317
118,900
27,415
669
1,991
( 3,652)
122,236
12,255
856
5,284
1,412
24
5,430
42,754
( 48,551)
S 902,870
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, 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 $ 30,055
Food and Beverage - Restaurant 33,207
Pro Shop Merchandise 48,551
0
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)
4441 and 4450 on 07112/2018. - City Clerk
VARGAS, PIEDRA & CO.
CERTIFIED PUBLIC ACCOUNTANTS
MEMBERS
AMERICAN AND FLORIDA
INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
ON SUPPLEMENTARY INFORMATION
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
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.
Gfi1 uc,
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.
Varga , Piedra & Co., CPAS
Miami, Florida
January 9, 2014
2
Submitted into the public record for items)
4440 and 4450 on 0711212018. - 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 0711212018. - City Clerk
�cE1VED
JUL 11 2018
INTERNATIONAL LINKS MIAMI /
MELREESE COUNTRY CLUB
STATEMENT OF (LOSS) AND
SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2014
Submitted into the public record for item(s)
4449 and 4450 on 0711212018. - City Clerk
TABLE OF CONTENTS
Independent Auditor's Report
Financial Statements:
Statement of (Loss)
Supplementary Information
Schedule of Administrative Expenses
Schedule of Food and Beverage Expenses
PAGES
1-2
3
IT
Schedule of Golf Course Maintenance Expenses r -
Schedule of Golf Course Operations and Driving Range Expenses 7
Notes to Financial Statements
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 (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 07112/2018. - 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.
Qil '00 ,.c.t� 2 fj•
Vargiedra & Co., CPAS
Miami, Florida
April 7, 2015
Submitted into the public record for itern(s)
4449 and 4450 on 07/1212018. - 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) S( 592)
See Accompanying Notes and Independent Auditor's Report
(3)
Submitted into the public record for items)
4449 and 4450 on 0711212018. - 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
Advertising
Bank Charges
Base Compensation — Charles Delucca Jr.
Computer Supplies and Expenses
Employee Leasing Cost
Delivery
Dues, Fees and Subscriptions
Equipment Repair
Legal and Accounting
Licenses and Taxes
Marketing Fees
Miscellaneous
Promotional Expenses
Security
Stationery and Printing
Supplies
Telephone
TOTAL ADMINISTRATIVE EXPENSES
See Accompanying Notes and Independent Auditor's Report
(4)
2014
$ 1,486
24
148,598
630
6,758
411
4,830
79
49,898
1,698
3,060
168
537
3,932
1,586
166
1,549
S 225,410
Submitted into the public record for itein(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, 2014
Cable — Comcast
Credit Card Costs
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Flowers and Decorations
Guest and Cleaning Supplies
Kitchen and Bar Supplies
Outside Services
Paper and Disposals
Purchases
Purchases — Beverages
Purchases — Water
Sales Tax
Security
Telephone
Uniforms
Waste
Water and Sewer
Beginning Inventory
Ending Inventory
TOTAL FOOD AND BEVERAGE EXPENSES
See Accompanying Notes and Independent Auditor's Report
(5)
2014
$ 2,441
12,930
278,447
65,395
2,447
400
13
18,189
2,281
191
130,082
39,567
764
38,720
6,684
425
939
775
96
33,207
30,409)
$603 584
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
Employee Leasing Services
Employee Leasing Cost
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
Travel
Uniforms
Waste
Water and Sewer
Maintenance and Repairs — City Parks
Beginning Chemical Inventory
Ending Chemical Inventory
TOTAL GOLF COURSE MAINTENANCE
See Accompanying Notes and Independent Auditor's Report
(6)
2014
$ 329,014
75,252
735
69,957
136,566
65,,314
10,929
14,573
23,399
29,359
5,203
8,789
35,123
21,023
1,932
23,645
425
673
2,508
301
906
( 108,550)
30,055
( 41:204)
$735,927
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
Advertising
Cable — Golf Operations
Commissions
Credit Card Cost
Driving Range Supplies
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Golf Cart Lease
Insurance
Marketing
Pro Shop Merchandise
Purchases —Golf Balls
Purchases — Golf Clubs
Purchases — Other
Purchases — Discounts
Sales Tax
Security
Stationery and Printing
Supplies
Telephone
Utilities
Water and Sewer
Beginning Inventory
Ending Inventory
TOTAL GOLF COURSE OPERATIONS
See Accompanying Notes and Independent Auditor's Report
(7)
2014
$ 1,750
217
26,965
27,106
3,675
277,977
49,295
618
42,756
9,786
573
78,253
9,448
510
215
( 1,713)
81,053
8,257
667
10,018
1,043
74
265
48,551
( 51,334)
S 626,025
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
122,947
(8)
Submitted into the public record for itern(s)
4449 and 4450 on 07112/2018. - 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
$1,537,843
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 07112/2018. - City Clerk
RECEIVED
JUL Y 1 2018
BY:
INTERNATIONAL LINKS MIAMI /
MELREESE COUNTRY CLUB
STATEMENT OF INCOME AND
SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2015
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
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 OV12l2018. - 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, 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 of -the -financial statement,
Submitted into the public record for item(s)
4449 and 4450 on 07112/2018. - City Clerk
We believe that the audit evidence we have obtained is sufficient and appropriate Lo 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.
Varga iedra & Co., CPAS
Miami, Florida
November 19, 2015
-L'
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 S 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 0711212018. - City Clerk
INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB
SCHEDULE OF FOOD AND BEVERAGE EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Cable — Comcast
Credit Card Costs
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Flowers and Decorations
Guest and Cleaning Supplies
Kitchen and Bar Supplies
Kitchen Laundry
Menus and Tickets
Purchases
Purchases — Beverages
Purchases — Water
Sales Tax
Security
Telephone
Uniforms
Water and Sewer
Beginning Inventory
Ending Inventory
TOTAL FOOD AND BEVERAGE EXPENSES
See Accompanying Notes and Independent Auditor's Report
(5)
2015
$ 2,763
17,952
397,833
89,088
7,290
41
157
19,782
13
190
187,723
75,062
2,702
57,141
8,499
61
745
421
30,411
( 33,045)
Submitted into the public record for item(s)
4449 and 4450 on 0711212018. - City Clerk
INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB
SCHEDULE OF GOLF COURSE MAINTENANCE EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Employee Leasing Services
Employee Leasing Cost
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
Waste
Water and Sewer
Maintenance and Repairs — City Parks
Beginning Chemical Inventory
Ending Chemical Inventory
TOTAL GOLF COURSE MAINTENANCE
See Accompanying Notes and Independent Auditor's Report
(6)
2015
$ 494,989
110,735
81,975
172,932
76,353
8,079
1:,994
3,510
39,758
11,883
44,096
24,212
26,054
865
40,269
61
4,341
822
1,929
( 107,800)
41,204
( 37,635)
$1,053,626
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
Cable — Golf Operations
Commissions
Credit Card Costs
Driving Range Supplies
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Golf Cart Lease
Insurance
Pro Shop Merchandise
Purchases —Golf Balls
Purchases —Golf Clubs
Purchases — Other
Purchases — Discounts
Sales Tax
Security
Stationery and Printing
Supplies
Telephone
Utilities
Water and Sewer
Beginning Inventory
Ending Inventory
TOTAL GOLF COURSE OPERATIONS
See Accompanying Notes and Independent Auditor's Report
(7)
2015
$ 2,761
3,525
43,085
15,181
410,923
92,071
1,778
52,275
13,252
132,635
21,800
645
70
( 3,586)
138,541
10,499
472
6,825
130
675
1,157
51,334
( 74,710)
S 921,338
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 $ 33,045
Chemical and Fertilizer 37,635
Pro Shop Merchandise 74,710
ON
$ 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
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 07112120'18. - City Clerk
DeLucca Enterprises
1802 NW 37th Avenue
Miami, FL 33125
4/8/2016
Daniel Newhoff,
Invoice 4 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 0711212018. - City Clerk
A-N"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 0711212018. - City Clerk
TABLE OF CONTENTS
Independent Auditor's Report
Financial Statements:
Statement of Income
Supplementary Information
Schedule of Administrative Expenses
Schedule of Food and Beverage Expenses
PAGES
1-2
4
5
Schedule of Golf Course Maintenance Expenses 6
Schedule of Golf Course Operations and Driving Range Expenses 7
Notes to Financial Statements
Submitted into the public record for item(s)
4449 and 4450 on 0711212018. - 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.
�Varga;Miedra & 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 --a5 ,O27
See Accompanying Notes
(3)
Submitted into the public record for item(s)
4449 and 4450 on 07112/2018. - 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
Advertising
Automobile Expense
Bank Charges
Base Compensation — Charles Delucca Jr.
Computer Supplies and Expenses
Employee Leasing Cost
Delivery
Dues, Fees and Subscriptions
Equipment Repair
Insurance — Health
Legal and Accounting
Licenses and Taxes
Marketing Fees
Postage
Promotional Expense
Security
Stationery and Printing
Supplies
Telephone
Utilities
Waste
TOTAL ADMINISTRATIVE EXPENSES
See Accompanying Notes
(4)
2016
$ 2,479
440
26
200,000
130
14,371
550
4,284
496
5,312
60,300
3,408
3,454
23
473
6,357
814
156
576
11,671
78
$ 315,398
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
Cable — Comcast
China, Glass and Silverware
Credit Card Costs
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Flowers and Decorations
Kitchen and Bar Supplies
Kitchen Gas
Paper and Disposables
Purchases
Purchases— Beverages
Purchases — Water
Sales Tax
Security
Stationery and Printing
Telephone
Uniforms
Utilities
Waste
Water and Sewer
Beginning Inventory
Ending Inventory
TOTAL FOOD AND BEVERAGE EXPENSES
See Accompanying Notes
(5)
2016
$ 3,274
1,901
18,497
423,497
79,305
10,888
127
18,744
12,856
184
192,708
72,163
2,543
53,705
10,807
122
307
1,133
13,130
694
2,480
33,045
( 40,713)
S 911,397
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
Employee Leasing Services
Employee Leasing Cost
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
Waste
Water and Sewer
Maintenance and Repairs — City Parks
Beginning Chemical Inventory
Ending Chemical Inventory
TOTAL GOLF COURSE MAINTENANCE
See Accompanying Notes
(6)
2016
$ 520,624
104,691
95,652
177,478
64,462
18,506
32,957
19,065
35,515
23,289
68,406
27,858
33,055
6,978
32,981
227
5,460
32,096
2,161
9,889
( 107,800)
37,635
( 60,541)
S 1,180.644
Submitted into the public record for item(s)
4449 and 4450 on 0711212018. - City Clerk
INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB
SCHEDULE OF GOLF COURSE OPERATIONS EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 20.16
Advertising
Cable — Golf Operations
Commissions
Credit Card Costs
Driving Range Supplies
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Golf Cart Lease
Insurance
Marketing Fees
Pro Shop Merchandise
Purchases — Discounts
Sales Tax
Security
Stationery and Printing
Supplies
Telephone
Uniforms
Utilities
Water and Sewer
Waste
Beginning Inventory
Ending Inventory
TOTAL GOLF COURSE OPERATIONS
7nlF;
$ 265
3 275
2,530
47,931
13,675
412,816
114,972
2,241
56,637
11,838
115
180,615
( 2,681)
139,518
13,349
1,291
4,482
485
629
16,376
5,933
271
74,710
( 84,165)
S 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.
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
NE
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
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 07112/2018. - City Clerk
DeLucca Enterprises
1802 NW 37th Avenue
Miami, FL 33125
4/9/2017
Daniel Newhoff,
Invoice # 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 11 2018
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 07M212018. - City Clerk
TABLE OF CONTENTS
Independent Auditor's Report
Financial Statements:
Statement of Income
Supplementary Information
Schedule of Administrative Expenses
Schedule of Food and Beverage Expenses
PAGES
1-2
3
4
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 0711212018. - 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 items)
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.
f
Vargaedra & Co., CPAs
Miami, Florida
January 31, 2018
(2)
Submitted into the public record for item(s)
4449 and 4450 on 07/1212018. - City Clerk
I
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 0711212018. - Cit!( 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 07112!2018. - City Clerk
INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB
SCHEDULE OF GOLF COURSE MAINTENANCE EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Employee Leasing Services
Employee Leasing Cost
Equipment Rental
Equipment Repair
Fertilizer and Chemicals
Beginning Chemical Inventory
Ending Chemical Inventory
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
Travel
Tree Trimming
Uniforms
Utilities
Waste
Water and Sewer
Maintenance and Repairs — City Parks
TOTAL GOLF COURSE MAINTENANCE
See Accompanying Notes
(6)
2017
$ 507,301
108,771
575
88,626
163,834
60,541
( 46,386)
64,077
16,730
29,742
4,522
52,408
8,176
57,271
35,780
31,585
2,293
38,201
225
561
11,535
5,080
40,216
1,430
13,869
( 111,034)
S 1,185,929
Submitted into the public record for item(s)
4449 and 4450 on 07/1212018. - City Clerk
INTERNATIONAL LINKS MIAMI / MELREESE COUNTRY CLUB
SCHEDULE OF GOLF COURSE OPERATIONS EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Cable — Golf Operations
Credit Card Costs
Driving Range Supplies
Employee Leasing Services
Employee Leasing Cost
Equipment Repair
Golf Cart Lease
Insurance
Marketing Fees
Purchases - Pro Shop Merchandise
Purchases — Discounts
Beginning Inventory
Ending Inventory
Sales Tax
Security
Stationery and Printing
Supplies
Telephone
Uniforms
Utilities
Water and Sewer
TOTAL GOLF COURSE OPERATIONS
2017
2,629
48,992
15,151
447,177
96,345
1,177
57,477
17,469
465
187,424
2,930)
84,165
72,241)
138,351
12,686
20
3,862
841
74
20,108
8,321
S 1,067,563
See Accompanying Notes
(7)
Submitted into the public record for item(s)
4449 and 4450 on 0711212018. - City Clerk
SUPPLEMENTARY INFORMATION
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, 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.
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, 2017
INVENTORIES
Inventories consist of the following at September 30, 2017.
Food and Beverage —Restaurant $ 33,330
Chemical and Fertilizer 46,386
Pro Shop Merchandise 72,241
$151 957
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 $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
ME
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 07/1212018. - City Clerk
DeLucca Enterprises
1862 NW 37thAvenue
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
FRBC EY V ED
JUL 11 2018
BY;
INTERNATIONAL LINKS MIAMI
FINANCIAL STATEMENTS
March 31, 2018
Submitted into the public record for item(s)
4449 and 4450 on 07/1212018. - 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.
VargPiedra & Co., CPA's
April 26, 2018
Submitted into the public record for item(s)
4449 and 4450 on 07x1212018. - City Clerk
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' Com
1
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
INTERNATIONAL LINKS MIAMI
SCHEDULE OF ADMINISTRATIVE EXPENSES
6 Months Ended
March 31, 2018
LEGAL AND ACCOUNTING
$ 19,500.00
ADVERTISING
720.00
BANK CHARGES
38.00
COMPUTER SUPPLIES AND EXPENSES
1,877.61
DELIVERY AND POSTAGE
108.50
DUES, FEES AND SUBSCRIPTIONS
5,504.26
LEGAL FEES
1,250.00
LICENSES AND TAXES
1,581.27
POSTAGE & DELIVERY
634.53
STATIONERY AND PRINTING
958.59
EMPLOYEE LEASING SERVICE FEES
6,518.70
BASE COMPENSATION - CD JR.
100,000.00
SECURITY
3,112.14
TELEPHONE
340.79
UTILITIES
7,668.11
EQUIPMENT REPAIR
397.50
TOTAL ADMINISTRATIVE EXPENSES
$ 150,210.00
See Accountants' Compilation Report
2 Submitted into the public record for item( s)
4449 and 4450 on 07/1212018. - City Clerk
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' Co
3
6 Months Ended
March 31, 2018
1,100.00
3,393.98
1,103.57
32,560A4
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
Submitted into the public record for item(s)
4449 and 4450 on 0711212018., -City Clerk
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 0711212018. - City Clerk
INTERNATIONAL LINKS MIAMI
SCHEDULE OF GOLF COURSE OPERATIONS AND DRIVING RANGE
EXPENSES
Months Ended
March 31, 2018
ADVERTISING
$ 500.00
PRO SHOP MERCHANDISE
122,544.74
PURCHASES - DISCOUNTS
(2,414.82)
BEGINNING INVENTORY
72,240.88
ENDING INVENTORY
(93,298.78)
INSURANCE
9,010.61
INSURANCE - HEALTH
25,575.77
SALES TAXES
76,927.55
SUPPLIES
2,598.90
STATIONERY & PRINTING
550.59
SECURITY
6,630.87
TELEPHONE
286.98
UTILITIES
10,543.66
CREDIT CARD COSTS
25,051.95
GOLF CART LEASE
25,050.00
DRIVING RANGE SUPPLIES
5,285.15
EMPLOYEE LEASING
233,626.41
EMPLOYEE LEASING SERVICE FEES
40,413.26
RENTAL CLUBS
250.00
WATER & SEWER
4,903.16
EQUIPMENT REPAIR
344.75
CABLE - GOLF OPERATIONS
1,102.11
TOTAL GOLF COURSE OPERATIONS AND
$ 567,723.74
DRIVING RANGE EXPENSES
See Accountants' Compilation Report
5 Submitted into the public record for item(s)
4449 and 4450 on 07/12/2018. - City Clerk