Resolution 6565 RESOLUTION NO. 6565
WHEREAS, recommendation has been made by our auditors,
Pentland, Purvis, Keller and Company, that we adopt the cremation
plan for the handling of our outstanding bonds and interest coup-
ons as they are retired, and
WHEREAS, our City Clerk also recommends and our City Manager
concurs in this recommendation of our auditors, copies of said
auditors' recommendation, together with that of our City Clerk
and City Manager, being attached and made a part hereof;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Miami Beach, Florida, that we do hereby approve of the
immediate installation of this cremation system in the handling
of our bonds and interest coupons as they are retired, as out-
lined in the attached letters of recommendation.
PASSED and ADOPTED this 21st day of April, A. D. 191+8.
_244it.
Mayor
ATTEST:
City Clerk
C/�eg,te�2'Pd ��/. .,}5i�1"�C10rw?iG(�,rgv6 Offices
/�l' iY , v/{/2���Lz JACKSONVILLE
7/ GJ� jJ/�/✓U WEST PALM BEACH
ROBERT PENTLAND,JR., C.P.A. e.�E%G I/,, e//K/i ATAM PAssoCiate Offices
HUGH F.PURVIS, C.P.A. FRANK L.COWLES, C.P.A.
W.JAMES I.KELLER,JR., C.P. A. 0
G.TYLER,C.P. A. <9— ' SANFORD
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EUGENET. ER B,C.P.A_ SYDNEY G.GRAY, C.P. A.
DAYTONA BEACH
LYNDON C.CON LON,C.P. A. J.L.ROBERTSON, C. P.A.
March 29, 1948
Mr. C. W. Tomlinson, City Clerk
City of Miami Beach
Miami Beach, Florida
Dear Sir:
As a result of our examination of the records and accounting
procedure of the City of Miami Beach for the year ended
September 30, 1947, we suggest a change in your accounting
procedure in connection with the handling of interest coupons
and bonds retired.
Your present procedure necessitates the checking of all paid
coupons received from the Paying Agent with the Agents report;
agreeing the detail with the total of the report; sorting
coupons numerically; posting the payments to the bond register;
pasting all of the paid coupons on individual bond sheets and
maintaining the individual sheets as a permanent file of paid
coupons.
We recommend that the City arrange with the Paying Agent to
have all paid coupons and paid bond's cremated and to issue to
the City, in lieu of the cancelled coupons and bonds, cremation
certificates covering the detail. The cremation certificate
serves as a posting medium to the bond register and as a permanent
record of the coupons paid and bonds retired.
The above procedure eliminates the necessity of checking all paid
coupons with the Paying Agent's report, agreeing the detail with
the total of the report, sorting all coupons numerically, and
the pasting of all coupons on individual bond sheets and main-
taining the sheets as a permanent file of paid coupons.
The procedure of having Paying Agent cremate paid coupons and
bonds, and issue cremation certificates, is in accordance with
generally accepted accounting principals, and has been adopted
by municipalities having large bond issues outstanding. It has
proven satisfactory in every respect and has resulted in a
considerable saving of time.
Yours very truly,
PEUTLAND, PURVIS, KELLER & COMPANY
ByEli
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C. W. T O M L I N S O N, CITY CLERK C L A U D E A. R E N S H A W, CITY MANAGER
Veara
* INCORP ORATE°
OFFICE OF THE
CITY CLERK
April 2, 1948
City Council
City of Miami Beach, Florida
Gentlemen:
It has been our custom, ever since the City first issued
bonds, to appoint a well-known New York bank as our collection
agency and to name it on our bonds and on the interest coupons
so that all payments of principal and interest would go through
the bank and in turn be accounted for to us .
As matured bonds and interest coupons have been paid, our
agent has forwarded said bonds and coupons to us from time to
time, and at the same time balance our cash account in their
bank.
These cancelled bonds have been permanently filed by our
Accounting Department and the interest coupons have been pasted
on a dummy sheet in our files as they came ins and when all
coupons on a certain bond have been paid and received, this
dummy sheet is attached to the cancelled bond. As the city has
grown and we now have several millions of dollars in one thousand
dollar bonds outstanding and being paid off, you can readily
imagine what a tremendous lot of detail work this has entailed
in our Accounting Department.
For a number of years many other cities and commercial
establishments have gotten away from this old-fashioned proced-
ure and have adopted what is referred to as "the cremation plan".
Under this plan our paying agent in New York would accumu-
late our bonds and interest coupons as paid and periodically
they would cremate them, first listing them, giving a detailed
description of each bond or coupon burned, and sending us this
detailed information in the form of a sworn cremation certificate.
City Council - 2 - April 2, 19+8
Our Accounting Department , in turn, would keep a detailed
record of each bond and each coupon on each bond issued, and as
these cremation certificates came in to us the individual bond
and coupon record would be posted to reflect this burning, and at
the same time our cash record in connection with each bond issue
involved would be balanced with the record submitted with the
cremation certificate by the New York agency.
Pursuant to the recommendation of our present auditors,
Pentland, Purvis, Keller and Company, which recommendation is
attached hereto, we jointly, having given this matter mature
thought, do concur in this recommendation and hereby solicit your
approval for the immediate installation of this greatly improved
system. We are convinced that it will result in a considerable
saving in time and will prove entirely satisfactory, in that we
will still retain all of our present accounting controls.
Respectfully submitted,
City Clerk
City Manager
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