LTC 217-2019 External Auditor's (Crowe Horwath LLP) Annual Audit Report on the City of Miami Beach (the City) for the period ended September 30, 2018 MIAMI BEACH
OFFICE OF THE CITY MANAGER 217-2019
LTC # '9 LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members o the City dommission
FROM: Jimmy L. Morales, City Manager
DATE: April 12, 2019
SUBJECT: External Auditor's (Crowe Ho 'ath LLP) Annual Audit Report on the City of Miami
Beach (the City) for the period eided September 30, 2018
The following report is currently available at https://www.miamibeachfl.gov/city-hall/finance/financial-
documents/:
A. Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2018,
which includes an unmodified (clean) audit opinion and emphasis of matter relating to the City's
implementation of Governmental Accounting Standards Board (GASB) Statement No. 75,
"Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans" and GASB
Statement No. 89, "Accounting for Interest Cost Incurred before the End of a Construction
Period". The audit opinion begins on page 10.
Enclosed, for your information, are the following documents:
A. A letter to the Mayor and Members of the City Commission, discussing the auditor's required
communications to the Mayor and City Commission, auditor's responsibility under auditing
standards general accepted in the United States of America and under Government Auditing
Standards, planned scope and timing of the audit, significant accounting policies and
management judgments and accounting estimates, auditor's judgments about qualitative
aspects of significant accounting practices, corrected and uncorrected misstatements, and other
communications.
B. Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards. This report contains a Significant Deficiency as noted in the
Schedule of Finding and Response on page 3 of the report.
C. Other Reports — Independent Accountant's Report on compliance with section 218.415, Florida
Statutes and Management Letter.
The enclosed reports will be available at the above web address as the single audit and other audits
are completed (before June 30, 2019). The reports noted above will be presented and discussed by
the external auditors at an upcoming Audit Committee meeting.
If you have any questions or need additional information, please feel free to contact Allison R. Williams
at 305-673-7466.
JLM/ aw
Crowe
Crowe LLP
Independent Member Crowe Global
To the Honorable Mayor and Members of the City Commission
City of Miami Beach, Florida
Professional standards require that we communicate certain matters to keep you adequately informed
about matters related to the financial statement audit that are, in our professional judgment, significant and
relevant to your responsibilities in overseeing the financial reporting process. We communicate such
matters in this report.
AUDITOR'S RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE
UNITED STATES OF AMERICA
Our responsibility is to form and express an opinion about whether the financial statements that have been
prepared by management with your oversight are presented fairly, in all material respects, in conformity
with accounting principles generally accepted in the United States of America. The audit of the financial
statements does not relieve you of your responsibilities and does not relieve management of their
responsibilities. Refer to our engagement letter with the City for further information on the responsibilities
of management and of Crowe LLP.
AUDITOR'S RESPONSIBILITY UNDER GOVERNMENT AUDITING STANDARDS
As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts or disclosures. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly,we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
PLANNED SCOPE AND TIMING OF THE AUDIT
We are to communicate an overview of the planned scope and timing of the audit.Accordingly,the following
matters regarding the planned scope and timing of the audit were discussed with you on November 20,
2018.
• How we proposed to address the significant risks of material misstatement, whether due to
fraud or error.
• Our approach to internal control relevant to the audit.
• The concept of materiality in planning and executing the audit, focusing on the factors
considered rather than on specific thresholds or amounts.
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• Where the entity has an internal audit function,the extent to which the auditor will use the work
of internal audit, and how the external and internal auditors can best work together.
• Your views and knowledge of matters you consider warrant our attention during the audit, as
well as your views on:
o The allocation of responsibilities between you and management.
o The entity's objectives and strategies, and the related business risks that may result in
material misstatements.
o Significant communications with regulators.
o Other matters you believe are relevant to the audit of the financial statements.
Matters relative to the use of other auditors/other accountants during the audit:
o An overview of the type of work to be performed by other auditors/other accountants.
o The basis for the decision to make reference to the audit of the other auditor in our
report on the entity's financial statements.
o An overview of the nature of our planned involvement in the work to be performed by
the other auditor/other accountant.
SIGNIFICANT ACCOUNTING POLICIES AND MANAGEMENT JUDGMENTS AND ACCOUNTING
ESTIMATES
Significant Accounting Policies: Those Charged with Governance should be informed of the initial selection
of and changes in significant accounting policies or their application.Also,Those Charged with Governance
should be aware of methods used to account for significant unusual transactions and the effect of significant
accounting policies in controversial or emerging areas where there is a lack of authoritative consensus.We
believe management has the primary responsibility to inform Those Charged with Governance about such
matters. To assist Those Charged with Governance in its oversight role, we also provide the following.
Accounting Standard Impact of Adoption
GASB Statement No. 86, "Certain Debt Adoption of this Statement did not have a
Extinguishment Issues." material impact on the City's financial position or
This Statement was issued to improve results of operations.
consistency in accounting for financial reporting
for in-substance defeasance of debt by providing
guidance for transactions in which cash and
other monetary assets acquired with only
existing resources (resources other than the
proceeds of refunding debt) are placed in an
irrevocable trust for the sole purpose of
extinguishing debt. The Statement also improves
accounting and financial reporting for prepaid
insurance of debt that is extinguished and notes
to financial statements for debt that is defeased
in substance.
GASB Statement No. 85, "Omnibus 2017." Adoption of this Statement did not have a
This Statement was issued to address practice material impact on the City's financial position or
issues that have been identified during results of operations.
implementation and application of certain GASB
Statements.
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Accounting Standard Impact of Adoption
GASB Statement No. 75, "Accounting and Upon adoption of this Statement, the City
Financial Reporting for Postemployment reduced beginning net assets by approximately
Benefits other than Pensions." $61 million in the Governmental Activities and
The primary objective of this Statement is to approximately$26 million in the Business Type
improve accounting and financial reporting by Activities.
state and local governments for postemployment
benefits other than pensions (other
postemployment benefits or OPEB). It also
improves information provided by state and local
governmental employers about financial support
for OPEB that is provided by other entities.
GASB issued Statement No. 89,Accounting for As a result, interest costs incurred before the end
Interest Cost Incurred before the End of a of a construction period are not included in the
Construction Period. This statement requires that historical cost of a capital asset reported in a
interest costs incurred before the end of a business-type activity or enterprise fund.
construction period be recognized as an expense
in the period in which the cost is incurred for
financial statements prepared using the
economic resources measurement focus.
Significant Unusual Transactions. No such matters noted
Significant Accounting Policies in No such matters noted
Controversial or Emerging Areas.
Management Judgments and Accounting Estimates: Further, accounting estimates are an integral part of
the financial statements prepared by management and are based upon management's current judgments.
These judgments are based upon knowledge and experience about past and current events and
assumptions about future events. Certain estimates are particularly sensitive because of their significance
and because of the possibility that future events affecting them may differ markedly from management's
current judgments and may be subject to significant change in the near term.
The following describes the significant accounting estimates reflected in the City's year end financial
statements, the process used by management in formulating these particularly sensitive accounting
estimates and the primary basis for our conclusions regarding the reasonableness of those estimates.
Significant Accounting Process Used by Management Basis for Our Conclusions
Estimate
Allowance for Doubtful The allowance for doubtful accounts We tested this accounting
Accounts and Bad Debt was determined by management by estimate by reviewing, on a test
Expense a process involving consideration of basis, the information listed and
past experiences, current aging by testing information in certain
information, information from credit files.
reports, contacts with the
customers, and other available data
including environmental factors
such as industry, geographical,
economic and political factors.
Fair Values of Investment The disclosure of fair values of We tested the propriety of
Securities and Other securities and other financial information underlying
Financial Instruments instruments requires management management's estimates.
to use certain assumptions and
estimates pertaining to the fair
values of its financial assets and
financial liabilities.
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Significant Accounting Process Used by Management Basis for Our Conclusions
Estimate
Useful Lives of Fixed Management has determined the We tested the propriety of
Assets economic useful lives of fixed information underlying
assets based on past history of management's estimates.
similar types of assets, future plans
as to their use, and other factors
that impact their economic value to
the City.
Loss Contingencies The City consults with legal counsel Based on information obtained
to evaluate outstanding litigation, from the City's legal counsel
claims and assessments. Factors regarding this matter and
that affect management's discussions with management,
evaluation of litigation contingencies we concur with management's
requiring disclosure include the determination that the loss
nature of the contingencies and contingency does not meet
whether the outcome could have an conditions for accrual of being
effect on the consolidated financial both probable and estimable,
statements. and, thus, no accrual is
recorded and no specific
disclosures are required.
Pension and Amounts reported for pension and We reviewed the
Postretirement Obligations postretirement obligations require reasonableness of these
management to use estimates that estimates and assumptions.
may be subject to significant
change in the near term. These
estimates are based on projection
of the weighted average discount
rate, rate of increase in future
compensation levels, and weighted
average expected long-term rate of
return on pension assets.
Self-insurance Liabilities The actuarial estimates are We reviewed the
developed based upon information reasonableness of these
supplied to the actuaries by estimates and assumptions.
management about past events as
well as expectations about future
events.
Landfill Postclosure Care The estimates are developed based We reviewed the
Costs upon information supplied to the reasonableness of these
engineer's by management about estimates and assumptions.
past events as well as expectations
about future events.
Compensated Absences Management has determined the We tested these estimates by
Liabilities estimated amounts for reviewing management's
compensated absences based on schedule and testing certain
future payments that are reasonably other information underlying
estimable. management's analysis.
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AUDITOR'S JUDGMENTS ABOUT QUALITATIVE ASPECTS OF SIGNIFICANT ACCOUNTING
PRACTICES
We are to discuss with you our comments about the following matters related to the City's accounting
policies and financial statement disclosures. Accordingly, these matters will be discussed during our
meeting with you.
• The accounting policies to the particular circumstances of the City,considering the need to balance
the cost of providing information with the likely benefit to users of the City's financial statements
are appropriate.
• Overall, the disclosures in the financial statements are neutral, consistent, and clear.
• The effect of the timing of transactions in relation to the period in which they are recorded is
appropriate.
• There were no significant risks and exposures, and uncertainties that are disclosed in the financial
statements.
• There were no unusual transactions including nonrecurring amounts recognized during the audit
period that materially impacted the financial statements.
• There were no particularly sensitive financial statement disclosures.
• There were no factors affecting asset and liability carrying values, including the City's basis for
determining useful lives assigned to tangible and intangible assets.
• There were no selective correction of misstatements, for example, correcting misstatements
with the effect of increasing reported earnings, but not those that have the effect of decreasing
reported earnings.
CORRECTED AND UNCORRECTED MISSTATEMENTS
Corrected Misstatements: We are to inform you of material corrected misstatements that were brought to
the attention of management as a result of our audit procedures.
There were no such misstatements.
Uncorrected Misstatements: We are to inform you of uncorrected misstatements that were aggregated by
us during the current engagement and pertaining to the latest and prior period(s) presented that were
determined by management to be immaterial, both individually and in the aggregate, to the financial
statements taken as a whole. For your consideration,we have distinguished misstatements between known
misstatements and likely misstatements.
There were no such misstatements
OTHER COMMUNICATIONS
Communication Item Results
Other Information In Documents Containing We read the following items and noted no
Audited Financial Statements material inconsistencies or misstatement of facts
Information may be prepared by management in such information based on our reading thereof.
that accompanies the financial statements. To
assist your consideration of this information, you • Introductory section
should know that we are required by audit • Management's Discussion and Analysis
standards to read such information and consider
whether such information, or the manner of its Statistical section
presentation, is materially inconsistent with
information in the financial statements. If we
consider the information materially inconsistent
based on this reading, we are to seek a
resolution of the matter.
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Communication Item Results
Significant Difficulties Encountered During There were no significant difficulties encountered
the Audit in dealing with management related to the
We are to inform you of any significant difficulties performance of the audit.
encountered in dealing with management related
to the performance of the audit.
Disagreements With Management During our audit, there were no such
We are to discuss with you any disagreements disagreements with management.
with management, whether or not satisfactorily
resolved, about matters that individually or in the
aggregate could be significant to the City's
financial statements or the auditor's report.
Consultations With Other Accountants We are not aware of any instances where
If management consulted with other accountants management consulted with other accountants
about auditing and accounting matters,we are to about auditing or accounting matters since no
inform you of such consultation, if we are aware other accountants contacted us, which they are
of it, and provide our views on the significant required to do by Statement on Auditing
matters that were the subject of such Standards No. 50, before they provide written or
consultation. oral advice.
Representations The Auditor Is Requesting We direct your attention to a copy of the letter of
From Management management's representation to us provided
We are to provide you with a copy of separately.
management's requested written representations
to us.
Significant Issues Discussed, or Subject to There were no such significant issues discussed,
Correspondence, With Management or subject to correspondence, with management.
We are to communicate to you any significant
issues that were discussed or were the subject of
correspondence with management.
Significant Related Party Findings and Issues There were no such findings or issues that are,
We are to communicate to you significant in our judgment, significant and relevant to you
findings and issues arising during the audit in regarding your oversight of the financial reporting
connection with the City's related parties. process.
Other Findings or Issues We Find Relevant or There were no such other findings or issues that
Significant are, in our judgment, significant and relevant to
We are to communicate to you other findings or you regarding your oversight of the financial
issues, if any, arising from the audit that are, in reporting process.
our professional judgment, significant and
relevant to you regarding your oversight of the
financial reporting process.
We are pleased to serve the City as its independent auditors and look forward to our continued relationship.
We provide the above information to assist you in performing your oversight responsibilities, and would be
pleased to discuss this letter or any matters further, should you desire. This letter is intended solely for the
information and use of Honorable Mayor, City Commission, Audit Committee and, if appropriate,
management, and is not intended to be and should not be used by anyone other than these specified
parties.
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Crowe LLP
Miami, Florida
March 29, 2019
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Crowe
Crowe LLP
Independent Member Crowe Global
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and City Commissioners
City of Miami Beach, Florida
We have audited, in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States, the financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Miami Beach, Florida (the "City") as of and for the year
ended September 30, 2018, and the related notes to the financial statements, which collectively comprise
the City's basic financial statements, and have issued our report thereon dated March 29, 2019. Our report
includes a reference to other auditors who audited the financial statements of the City of Miami Beach
Florida Employees' Retirement Plan, as described in our report on the City's financial statements. This
report does not include the results of the other auditor's testing of internal control over financial reporting
and compliance and other matters that are reported on separately by those other auditors. Our report also
includes a reference to other auditors who audited the financial statements of the City Pension Fund for
Firefighters and Police Officers, as described in our report on the City's financial statements. The financial
statements of the City Pension Fund for Firefighters and Police Officers were not audited in accordance
with Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the City's financial
statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies
in internal control that we consider to be material weaknesses. We did identify certain deficiency in internal
control, described in the accompanying schedule of findings and responses as item 2018-001 that we
consider to be a significant deficiency.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
City's Response to Findings
The City's response to the findings identified in our audit are described in the accompanying schedule of
findings and responses. The City's response was not subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
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Crowe LLP
Miami, Florida
March 29, 2019
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CITY OF MIAMI BEACH
SCHEDULE OF FINDING AND RESPONSE
Finding 2018-001
Classification: Significant Deficiency
Criteria or specific requirement: The City should complete a review of all fee changes that are completed
in the EnerGov system to ensure accuracy of the fees as approved by ordinance.
Condition: The City did not have a formal procedure to review changes to fees completed in the EnerGov
system completed by the senior system analyst in the Building department.
Effect: Inaccurate fee changes may result in an improper fee being charged to customers.
Cause: There is no formal written policy to document the review of fee changes completed in EnerGov.
Recommendation: We recommend that a formal written policy be developed which includes a documented
independent review of all changes to fees that have been adopted though City ordinance and that there be
a quarterly review of EnerGov activity logs for all fee changes.
Views of responsible officials and planned corrective action: At the time of this audit, the Building
Department had an informal procedure regarding the changing of fees based on approved City ordinances.
The Building Department felt that the procedures in place included sufficient internal checks and balances.
The procedures were subsequently formalized into a policy, but the auditors indicated that the policy was
not sufficiently adequate for the process.
The City Policy is presently being amended to add an automatic auditing component to any EnerGov
programing fee changes. The new policy will provide notification to the IT Department and the Building
Department of any changes in the fees made within the EnerGov programing for verification of compliance
with City Ordinance. The policy is currently in the review process and should be fully implemented within
60 days.
Subsequent to the audit the City reviewed the fees implemented by the Building Department and found no
conflicts with city ordinances. The Building Department has ceased to adjust fees in the EnerGov program;
all fee changes are being addressed by the City's IT department while waiting for the amended policy to be
implemented.
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CITY OF MIAMI BEACH, FLORIDA
REPORTS IN ACCORDANCE WITH
CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
September 30, 2018
CITY OF MIAMI BEACH, FLORIDA
REPORTS IN ACCORDANCE WITH CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
September 30, 2018
TABLE OF CONTENTS
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES 1
MANAGEMENT LETTER 2
Crowe
Crowe LLP
Independent Member Crowe Global
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH
SECTION 218.415,FLORIDA STATUTES
To the Honorable Mayor and Members of the City Commission
City of Miami Beach, Florida
We have examined the City of Miami Beach, Florida (the "City") compliance with Section 218.415, Florida
Statutes, concerning the investment of public funds during the year ended September 30, 2018.
Management of the City is responsible for the City's compliance with those requirements.Our responsibility
is to express an opinion on the City's compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and the standards applicable to attestation engagements contained
in Government Auditing Standards issued by the Comptroller General of the United States. Those
standards require that we plan and perform the examination to obtain reasonable assurance about whether
the City complied,in all material respects with the specified requirements referenced above.An examination
involves performing procedures to obtain evidence about whether the City complied with the specified
requirements.The nature,timing, and extent of the procedures selected depend on our judgment, including
an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the
evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
Our examination does not provide a legal determination on the City's compliance with specified
requirements.
In our opinion, the City complied, in all material respects, with the requirements contained in Section
218.415, Florida Statutes for the year ended September 30, 2018.
The purpose of this report is solely to comply with Chapter 10.550, Rules of the Florida Auditor General.
Accordingly, this report is not suitable for any other purpose.
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Crowe LLP
Miami, Florida
March 29, 2019
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Crowe
Crowe LLP
Independent Member Crowe Global
To the Honorable Mayor and Members of the City Commission
City of Miami Beach, Florida
Report on the Financial Statements
We have audited the financial statements of the City of Miami Beach, Florida (the"City"), as of and for the
year ended September 30, 2018, and have issued our report thereon dated March 29, 2019. Our report
includes a reference to other auditors who audited the financial statements of (1) City of Miami Beach
Florida Employees' Retirement Plan and (2) City Pension Fund for Firefighters and Police Officers, as
described in our report on the City's financial statements. This report does not include our consideration of
the other auditors'management letters that are reported on separately by those other auditors.The financial
statements of the City Pension Fund for Firefighters and Police Officers were not audited in accordance
with Government Auditing Standards.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States;Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance); and Chapter 10.550, Rules of the Auditor General.
Other Reports
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards; Independent Auditor's Report on Compliance for Each Major Federal
Program and State Financial Assistance Project and Report on Internal Control over Compliance; Schedule
of Findings and Questioned Costs; and Independent Accountant's Report on Compliance with Section
218.415, Florida Statutes. Disclosures in those reports, which are dated March 29, 2019 should be
considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding annual financial
audit report. There were no findings in the preceding annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in this
management letter, unless disclosed in the notes to the financial statements. Such information is disclosed
in Note 1.A. to the financial statements.
(Continued)
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Financial Condition
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the City has met one or more of the conditions described in Section
218.503(1), Florida Statutes,and identification of the specific condition(s)met. In connection with our audit,
we determined that the City did not meet any of the conditions described in Section 218.503(1), Florida
Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the City's financial condition,
and our financial condition assessment was based in part on representations made by management and
the review of financial information provided by same.
Annual Financial Report
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the City for the year ended September 30,2018,
filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes,
is in agreement with the annual financial audit report for the fiscal year ended September 30, 2018. In
connection with our audit, we determined that these two reports were in agreement.
Special District Component Units
Section 10.554(1)(i)5.d, Rules of the Auditor General, requires that we determine whether or not a special
district that is a component unit of a county, municipality, or special district, provided the financial
information necessary for proper reporting of the component unit,within the audited financial statements of
the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In
connection with our audit, we determined that all special district component units provided the necessary
information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management. In connection with our audit,we did not have any
such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred,
that have an effect on the financial statements that is less than material but which warrants the attention of
those charged with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing Committee,
members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General,
federal and other granting agencies,the City Commission,and applicable management,and is not intended
to be and should not be used by anyone other than these specified parties.
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Miami, Florida
March 29, 2019
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