Cultural Arts Council/V\I.A/\1\1 BE H
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
TO:
VIA:
FROM:
Jorge M. Gonzalez, City Manager .I{)...,
Kathie G. Brooks, Budget and Performancg Improvement DirectorP)/
James J. Sutter, Internal Auditor4r
May 10, 2010 / v DATE:
AUDIT:
PERIOD:
Miami Beach Cultural Arts Council Audit
October 1, 2008 to September 30, 2009
This regularly scheduled audit of the Miami Beach Cultural Arts Council (CAC) covering the 2008/09
fiscal year was performed in compliance with the annual audit requirements specified by City Code
Section 2-64.
INTRODUCTION
On March 5, 1997, the City Commission passed City Ordinance No. 97-3075 thereby creating the
Miami Beach Cultural Arts Council (CAC) to develop, coordinate, and promote the performing and
visual arts in Miami Beach for the enjoyment, education, cultural enrichment, and benefit of both
residents and visitors. Since that time, the City has awarded more than $6,500,000 in cultural art
grants, supporting thousands of performances, exhibits and other cultural activities in Miami Beach.
On June 3, 1998 the City Commission approved the Miami Beach Cultural Arts Council Master Plan
through Resolution No. 98-22760. The Master Plan process began in October of 1997 and was the
result of a series of public town meetings held in cultural venues throughout Miami Beach. At these
sessions, council members heard directly from members of the City's cultural community and from
other municipal agencies and boards with a stake in the City's cultural future. The Master Plan
included the program areas of Cultural Grants Program, Joint Marketing, Cultural Facilities,
Advocacy and Planning, and Revenue Development; each with individual objectives.
In fiscal year 2004/05, the City Commission authorized expanding the allocation of the 50% of the
1% resort tax previously equally distributed to North Beach, Middle Beach and South Beach, to
include funding for the arts. This funding is distributed in the year after it is collected. This
commitment of funding for arts and culture provided a new permanent funding source that sustains
cultural programming long term. As a result, the 1% resort tax revenues collected in FY 2007/08
totaling $819,420.03 were appropriated to each of North Beach, Middle Beach, South Beach and
the Arts in FY 2008/09.
In an effort to address the needs of the arts community, CAC staff in conjunction with the CAC
Board annually reviews each of the grants programs (currently Cultural and Junior Anchors; Cultural
Presenters; North Beach Initiative/Cultural Ignition; Arts & Cultural Education; Cultural Heritage;
Artistic Disciplines; and Cultural Tourism) to determine the type of programs which will benefit the
, community. A summary of each grant program follows:
• Cultural Anchors provide grants to the major preeminent arts institutions physically based in
Miami Beach, whose primary mission is year round artistic and cultural programming that
contributes significantly to the City's cultural life. Organizations must have minimum
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10,2010
organizational budget levels of $750,000 and the monies received may be used towards
operational expenses in association with the annual cultural programming described in the
application. In addition, for the second consecutive fiscal year there are now "Junior"
Cultural Anchors which meet all the same criteria as Cultural Anchors except they have
organizational budget levels below $750,000.
• Cultural Presenters provide grants to organizations whose primary mission is to produce and
present cultural and artistic productions.
• North Beach Initiative earmarks funds for proposed projects at the Byron Carlyle Theatre,
North Beach Band Shell and other North Beach locations (north of 63rd Street) for the
purpose of increasing the amount of cultural activities in Miami Beach's North Beach
community. Meanwhile, Cultural Ignition provides funds for organizations never before
funded by the City thereby encouraging new cultural organizations to participate in the grants
process.
• Arts & Cultural Education provides grants to cultural organizations whose primary mission is
to provide support for rich and challenging arts learning opportunities for children and adults
in Miami Beach schools and neighborhoods. Grants may be used for workshops,
lectures/demonstrations, and other projects designed to increase skills and awareness of
the arts.
• Cultural Heritage provides project specific grants for arts programming to not-for-profit
501 c(3) Miami Beach based institutions devoted to promoting and protecting the diverse
heritage, traditions and culture of Miami Beach. Grants may be used for presentation of
visual and performing arts, arts programs and workshops, and other projects which
emphasize the artistic experience and are accessible to a broad audience.
• Artistic Disciplines funding is limited to arts and cultural organizations whose primary mission
is to create and present work in one of the following artistic disciplines; Dance, Music
Theater, Film and Visual Arts. Proposed projects should be for work that is new or has
never before been presented in Miami Beach.
• Cultural Tourism are grant funds jointly provided by the CAC and Miami Beach Visitor and
Convention Authority (VCA) to support major cultural arts performances, festivals, and
events which attract a significant number of tourists to the City. The VCA provided $60,000
and the CAC gave $40,000 to fund this program during the 2008/09 fiscal year.
Suggestions and ideas are received from grantees, grants' panelists, members of the CAC and
other granting organizations through orientation meetings held at the beginning of each grant period,
consultations with grantees, public application and proposal reviews, public meetings held at the
end of the review cycle, the Grants Task Force, and through staff, so that the programs can
continually be improved. Program application periods and relevant deadlines are announced in
January via press releases, electronic mail, on its website and in area newspapers. Program
guidelines, applications and instructions are created in Microsoft Word format and made available
on the website in both English and Spanish.
To be eligible to apply, organizations must be non-profit, 501 c(3) cultural organizations and cultural
departments within an institution of higher learning (college or university) with tax-exempt status
under subsections of 501 c(s) wishing to present or produce cultural and artistic events in the City of
Miami Beach. Furthermore, any applying organization that satisfies one of the following criteria is
not entitled to receive funding:
• applied through a fiscal agent
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10,2010
• received prior CAC grant funding and did not comply with the Grant Agreement and/or other
requirements
• did not include the City of Miami Beach logo and required credit line in all publications
related to the grant
• received funding from the VCA during the same fiscal year.
A total of $970,000 was requested in grant monies by fifty organizations for the 2008/09 fiscal year.
Each grant applicant must follow an extensive multi-level public review process which includes a
general orientation for all applicants and required consultations with CAC staff to determine eligibility
and appropriate programs. Applicants must meet all application requirements, including deadlines,
or be disqualified.
Applications were scored by the CAC at a series of publicly noticed panel meetings. Applicants
should attend their panel meeting where they will be permitted to respond to panelists' questions. A
score will be assigned to the applicant and must exceed 80 out of 100 to be eligible to receive
funding.
Thirty-eight organizations exceeded or met the designated minimum score required for funding.
One of the eleven Cultural Anchor and Junior Anchor organizations, Miami Design Preservation
League or MDPL, scored 76.45, below the minimum score of 80. However, the City Administration
and CAC recommended awarding MDPL $15,000 for the 2008/09 fiscal year which was approved
by the Commission.
As a result, the City Commission, through the passage of Resolution No. 2008-26906, awarded
grants totaling $627,169.33 to forty-three eligible organizations for the 2008/09 fiscal year. The
largest award of $27,910.75 was given to the New World Symphony, while the lowest amount of
$6,908.59 was given to the Center for Folk & Community Art. All of these authorized grant
recipients receive half their funding upon submittal and approval of the required documents with the
remaining half upon completion from the City.
Resolution No. 2008-26906 also included four programs (XIV International Ballet Festival, 13th
Brazilian Film Festival of Miami, 11th Annual Miami Gay & Lesbian Film Festival in Miami Beach and
the 4th Annual Women's International Film & Arts Festival) whereby the CAC partnered with the
Miami Beach Visitor and Convention Authority or VCA for Cultural Tourism grants that support
cultural events with documented tourism benefits. The City's agreed upon payment of $40,000 was
made to the VCA through check number 2524 dated 12/02/08. These authorized grant recipients
receive all their funding from the VCA upon submittal and approval of the required documents after
the project's completion.
The CAC budget does not include a contribution towards the City's Cultural Endowment for the
2008/09 fiscal year due to budget constraints. However, the endowment's 09/30/08 balance held in
a restricted cash account increased by $256,050.09 to $1,476,050.09 from the prior fiscal year's
ending balance of $1,220,000 due to the interest earned by the endowment.
Under Resolution No. 99-23228, the City Commission approved the appropriation of $220,000 from
the CAC budget to provide matching funds in the form of a non-interest bearing loan to fund a
portion of the Colony Theatre Improvements. Since the City was able to obtain the maximum grant
award from the State's Cultural Arts Facilities Grant Program, the loan has been reduced to
$165,000. The City will repay the loan to the Cultural Arts Council from the 70% recapture of the
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10, 2010
Colony Theatre Cafe revenues. As of September 2009, the total amount in the Colony Theater
Trust account was $143,139.82 with no payments made during the past four fiscal years.
OVERALL OPINION
The Cultural Arts Council (CAC) has properly followed the guidelines established by the Miami
Beach City Commission as to their purpose in the City. It has established a master plan for the arts,
and developed and established criteria and guidelines for review and funding for qualified not-for-
profit organizations. The active CAC is comprised of eleven Miami Beach residents and business
owners who routinely meet once a month to plan the organizations' future. Program files were well
organized for each tested vendor. Documentation was present confirming that funded programs
were properly staged and written final reports were received before grant payments were authorized
for reimbursement. Finally, grantee payments were made timely and were recorded correctly in the
City's Financial System.
However, the following findings were identified which are in need of corrective action:
• One grantee, the Jewish Museum of Florida, submitted incomplete cancelled checks,
invoices, etc. by $7 43.62 to support the receipt of the full amount of the grant. This was the
only incorrect payment noted and represented .12% ($743.62/$627,169.33) of all monies
paid to grantees. Upon notification, the grantee submitted additional documentation to
satisfy the City's requirements and to earn full reimbursement.
• Grantees are submitting either incomplete or late documentation (IRS letters, IRS form 990s,
certified financial statements and/or completed final reports) but are still receiving the
second City payment in the next fiscal year.
• The $143,139.82 balance remains unnecessarily in the Colony Theatre Trust Account 601-
7000-229220 to pay back a loan that was not made.
• The Friends of the Bass Museum's second grant reimbursement payment of $10,316.63
was incorrectly split between two general ledger accounts when the corresponding debit
should have been only to 140-6080-000349.
As the result of our verification of departmental measures detailed in finding #5, we noted that there
were inaccuracies in some of the measures reported in the City's Environmental Scan, performance
management software and adopted budget book. These measures should be changed to reflect the
data supported by the department's records.
PURPOSE
To determine whether the Cultural Arts Council complied with tested requirements set forth by the
City Commission during the 2008/09 fiscal year, which includes the timely distribution of approved
grant funds in the correct amount to qualified eligible not-for-profit organizations; properly reported
all grant payments in the City's Financial System; and accurately reported data in the City's
Environmental Scan, performance management software and adopted budget book.
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10, 2010
SCOPE
1. Confirm that the Cultural Arts Council has developed, established and adhered to criteria
and guidelines for review and funding of qualified not-for-profit arts organizations.
2. Confirm that the Cultural Arts Council consists of eleven members, who are appointed for
three-year terms and no more than six consecutive years, are residents or own businesses
on Miami Beach.
3. Confirm that Cultural Arts Council meetings are held once a month (excluding August) and
that one public hearing before the City Commission is held annually.
4. Confirm that grant payments were correctly recorded in the City's Financial System.
5. Select a sample of grants awarded, ensuring that all grant categories are represented, and
confirm that funds paid for grants were for approved programs, meeting the criteria set forth
by the Cultural Arts Council.
6. Confirm that selected departmental measurement data reported in the City's Environmental
Scan, performance management system and adopted budget book is accurately calculated
and properly supported by source documentation.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
1. Finding -Submitted Supporting Documentation Does Not Satisfy Grant Reimbursement
Amount
Forty-three grantees were awarded monies totaling $627,169.33 for the 2008/09 fiscal year
by the City Commission's ratification of Resolution No. 2008-26906. These authorized grant
recipients are to receive half their funding upon submittal and approval of the required
documents with the remaining half upon completion. The Grants and Operations
Administrator approves the submitted documentation for sufficiency before a Request for
Direct Payment is prepared authorizing the City's Finance Department to issue a check to
the grantee.
Fifteen of the forty-three grantees or 34.88% and representing 35.22% of the dollars
disbursed were randomly selected for review with at least one non profit corporation chosen
from each of the designated categories (Cultural Anchors, Cultural Presenters, etc.). In
doing so, it was discovered that the Jewish Museum of Florida's submitted documentation
was not sufficient to justify the received full grant reimbursement for the following reasons:
• The summary listing of advertising expenses showed check #22433 as totaling
$300.00 when in actuality it equaled $115.30 for a $184.70 difference.
• The summary listing of advertising expenses had two duplicate listings for check
#22311 for $595.00. Review of the cancelled check and supporting invoice
confirmed that the check was for $595.00.
• The advertising expenses submitted totaled $23,037.08 or $36.08 more than the
grant reimbursement amount of $23,001.00. As a result, the grantee was
reimbursed by $743.62 more than proper based on the supporting documentation
provided.
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10,2010
Recommendation(s)
The Grants and Operations Administrator should more closely scrutinize the supporting
documentation (cancelled checks, vendor invoices, etc.) to ensure that they are complete
and warrant the issuing of the second City reimbursement grant check in full. Any
differences noted should then be forwarded to the grantee thereby allowing them sufficient
time to investigate and possibly submit other qualified expenditures. This opportunity was
granted to the Jewish Museum of Florida and they promptly provided additional advertising
expenses to justify receipt of the full second grant reimbursement payment.
Management's Response
The Tourism & Cultural Development Department agrees with the recommendation to more
closely scrutinize the supporting documentation provided. A policy is already in place to
contact the organization regarding inaccuracies in supporting documentation and allowing
them to submit other qualified expenditures.
2. Finding -Grantees Submitted Incomplete or Late Documentation but still Receive Full
Reimbursement
Prior to receiving any monies, a grant agreement must be completed and signed by both the
City and the participating 501 (c)3 entity. This standard document requires the submittal of a
final report within 45 days of the project's completion date; proof of the City of Miami Beach
logo and credit line must be included in all project publications and advertisements; proof of
performances such as programs, brochures and flyers; etc.
The Grants and Operations Administrator monitors these non profit organizations and
collects and organizes all received documentation in designated folders. Internal Audit
reviewed these folders for sufficiency and completeness and found the following
deficiencies:
a. Five of the fifteen files reviewed or 33.33% did not contain an Internal Revenue
Service letter dated after 01/01/06 giving the grantee 501 (c)3 tax exempt status as
specified in the grant application. However, Internal Audit's review of the State of
Florida Division of Corporation's website properly found that all were active Florida
non profit corporations.
b. CAC is relatively lax in requiring each grantee to submit either their last completed
Internal Revenue Service form 990 or certified financial statements as these items
should be done annually unless an extension is requested and granted. All grantees
complied with CAC's terms but several were outdated with the oldest being
submitted by Seraphic Fire covering the fiscal year ending 12/31/05.
c. Grantees are required to submit their final report no later than 45 days after the
project end or 11/15/09 for projects ending on 09/30/09 to receive the second half of
the grant award. Although CAC does not time/date stamp these documents when
received, the grantee does notarize, sign and date the last page of these final reports
prior to submittal. Therefore, Internal Audit conservatively used this date to measure
when the final reports were received by the City.
In doing so, it was noted that three grantees (Italian Film Festival, Culture in the City
and Seraphic Fire) were received late but the second grant reimbursement checks
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10,2010
totaling $22,536.66 were still disbursed in the next fiscal year. Furthermore, three
other grantees (Miami Dade Community College, Florida Grand Opera and
Wallenstein Musical Organization Inc.) had not provided the Grants and Operations
Administrator with all the documentation necessary to have their final checks issued
totaling $22,718.83 prior to the conclusion of this audit. Yet, all of the
aforementioned grantees are expected to receive full funding per inquiries.
Subsequent inquiries with Cultural Arts Division staff found that they are flexible on
this due date. Furthermore, they spend time continually reminding the grantees that
deadlines have passed and work with them to help ensure that they receive full
funding, whenever possible.
Recommendation(s)
The implementation of the following recommendations should help alleviate the
aforementioned documentation shortcomings:
a & b. Cultural Arts Division staff should more closely scrutinize submitted documentation
to ensure that all requirements are satisfied. The usage of a checklist for each
grantee should help ensure all grant applicants should have complied with all the
terms listed in the grant application before they are considered for funding.
c. The date that grantee documents are received should be indicated by the newly
purchased time/date stamp machine to help verify that the grantee complied with the
agreed upon requirements and is eligible for future funding. Finally, the timely
submittal of the grantees should allow Cultural Affairs Division staff sufficient time to
review the report for completeness and for the Finance Department to issue the
second and final check during the same fiscal year that the monies were
appropriated by the City Commission.
Management's Response
The Tourism & Cultural Development Department responds as follows to the above finding:
a. Agree, more scrutiny is necessary and has been applied strictly in the two fiscal
years since.
b. Policy in place asks only for the most recent IRS 990; it is not date-specific. Staff
does not feel it is their responsibility to police non-profit organizations with regard to
taxes filed. Miami-Dade County Division of Cultural Affairs also asks for "most
recent 990;" however, if it is more than two years old the applicant is told that the
panel will be informed of such.
c. Miami Dade Community College (MDCC), not selected for audit, provided their Final
Report in accordance with the deadline. Upon review of their report, they were
informed of their lack of necessary documentation and were asked to provide it.
After receiving this documentation, MDCC received their 2nd-half payment.
Florida Grand Opera, not selected for audit, submitted a revised project proposal
after receiving their 1 81-half payment. This revision precluded them from receiving
any further funding from the CAC.
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May10,2010
Walenstein Musical Organization, not selected for audit, provided their Final Report
in accordance with the deadline. Upon review of their report, they were informed of
the lack of necessary documentation and were asked to provide it. This
documentation was not received in full or in a timely manner. As a result, a reduced
final payment was issued less those expenses unaccounted for.
The CAC is committed to fully funding their portion of awarded cultural projects. It
establishes relationships with cultural organizations for the purpose of fulfilling the
City's cultural needs now and into the future. In many cases it is not possible to
issue the final grant payment within the same fiscal year, especially when project
completion date coincides with the end date of that fiscal year. We would like to
note that, due to increased staff diligence, the number of late submissions have
decreased drastically.
3. Finding-Colony Theatre Cafe!Segafredo Loan Trust Account Monies not yet Transferred to
a Capital Reserve Fund
Under Resolution No. 99-23228, the City Commission approved the appropriation of
$220,000 from the CAC budget to provide matching funds in the form of a non-interest
bearing loan to fund a portion of the Colony Theatre Improvements. Since the City was able
to obtain the maximum grant award from the State's Cultural Arts Facilities Grant Program,
the loan was subsequently reduced to $165,000. The City was to repay the loan to the CAC
from the 70% recapture of the Colony Theatre Cafe/Segafredo rental revenues.
Monies received from the rental revenues were placed into the Colony Theatre Trust
Account 601-7000-229220 through 09/30/05 as the balance grew to $143,139.82. However,
no additional monies were put into this trust account during the 2006/07, 2007/08 and
2008/09 fiscal years despite continuing to collect rental revenues and not yet reaching the
$165,000 desired balance.
We could not locate any evidence that the City (CAC) loaned $165,000 to the Colony
Theatre Cafe. Consequently, the monies should not be held in a trust account to pay back a
loan that was not made. This finding was also present in last year's audit report whereby
discussions were held between the Tourism & Cultural Development Director and City
Administration where it was agreed that these funds would be placed in a capital reserve
fund for future capital needs of the Colony Theatre but no such action has been taken to
date.
Recommendation(s)
The trust account should be closed and the $143,139.82 balance should be used in the
manner recommended by the City Administration and subsequently authorized by the City
Commission.
Management Response
This was an oversight on Tourism & Cultural Development Department's part. A
recommendation for the trust account balance is included in the department's FY 2010/11
budget request.
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10, 2010
4. Finding -Incorrect General Ledger Account Used for Friends of the Bass Museum
$10,316.63 Second Half Grant Reimbursement
All grantee payments during previous audits have originated from general ledger account
number 140-6080-000349 entitled CAC Other Contractual Services. This practice held true
for the current audit except that the Friends of the Bass Museum's second payment of
$10,316.63 which was split as follows: $3,579.42 debit to general ledger account number
140-6080-00345 (CAC Program Operations) and the remaining $6,737.21 was debited to
the Other Contractual Services account. Inquiries were made as to the reasons for this
deviation by Tourism & Cultural Development Department who responded that it was a
clerical error in need of correction.
Recommendation(s)
The Finance Department should prepare a journal entry to correct the aforementioned
Friends of the Bass Museum's split payment so that all $10,316.63 is debited from CAC's
Other Contractual Services account. Tourism & Cultural Development staff should be more
careful in the future to ensure that the proper general ledger accounts are impacted for grant
reimbursements.
Management Response
We regret this bookkeeping error and will contact the Finance Department to prepare a
correcting journal entry.
5. Finding-Review of Departmental Measures
The Cultural Affairs Division measures both the number and amounts of grants awarded by
the Commission, as well as the actual number of grants issued (output measures). These
numbers may differ as the number of grants issued is usually not available until the end of
the year since grantees may withdraw or be denied funding due to not fulfilling grant
requirements.
These departmental measures are reported in either the City's Environmental Scan or the
performance management software. We reviewed the basis for each measure and
compared the reported amounts to the actual supporting documentation.
For the two measures reported annually in the City's 05/01/09 Environmental Scan we noted
the following:
Meanwhile, results from the audit of the amount of cultural grants issued (paid out), as
reported in the performance management software were as follows:
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10, 2010
# of grants Issued
Fiscal Year · · · · CAC ·Audited Difference
2003/04 47 47 0
2004/05 49 45 4
2005/06 47 45 2
2006/07 49 49 0
2007/08 36 36 0
2008/09 43 43 0
A review of the performance management software found that the differences listed above
for the 2004/05 and 2005/06 fiscal years were caused by changes during the current fiscal
year as last year's audit found no differences.
After completing our review of the above measures for fiscal year 2008/09, we determined
the following assessment categories suitable as defined in Exhibit 1 attached:
. Source. .· ·.· Narhe of Measure ·· ·.·· Assessment Category
Environmental Scan # of grants Awarded Certified
Environmental Scan Grant Award Amounts Certified
Performance Management # of grants Issued Certified with Qualifications
Software
Finally, it was discovered that the performance measure entitled "# {number} of cultural
grants issued" for the 2005/06, 2006/07 and 2007/08 fiscal years reported in the City's
adopted budget book is incorrect. Each of the aforementioned fiscal years' figures is
overstated by two and was confirmed in discussions with Cultural Affairs personnel.
Recommendation(s)
The identified incorrect measures for the number of grants issued in the City's performance
measurement software should be corrected. Finally, the City's budget book for the 2009/10
fiscal year should be revised to have the# of cultural grants issued equal those figures listed
above in the column labeled "audited".
Management's Response
The # of Grants Issued will be changed to agree with the Audited column findings.
EXIT CONFERENCE
An exit conference was held on March 23, 2010 and the participants included Max Sklar (Tourism
Development Director), Gary Farmer (Cultural Affair Program Manager), Mary Heaton (Grants &
Operations Administrator), Georgina Echert (Assistant Finance Director), James Sutter (Internal
Auditor), and Mark Coolidge (Senior Auditor). All present were in agreement with the findings and
recommendations discussed and management responses were submitted shortly thereafter for
inclusion in this report.
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10, 2010
JJS:MC:mc
Audit performed by Senior Auditor Mark Coolidge
F:lobpii$AUD\INTERNAL AUDIT FILES\DOC09-10\REPORTS-FINAL\CAC 2009.doc
cc Hilda Fernandez, Assistant City Manager
Patricia Walker, Chief Financial Officer
Max Sklar, Cultural Arts and Tourism Development Director
Gary Farmer, Cultural Affairs Program Manager
Georgina Echert, Assistant Finance Director
Jose Cruz, Budget Officer
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
May 10, 2010
EXHIBIT: 1 -Assessment Categories for Performance Measures Verification
.· Asse$sment Category ': . ' : :· . Criteria ·: ' ... ' : ' ·.··' .· .
If reported performance is 100% accurate and if it appears that
Certified controls are in place to ensure accuracy for collecting and reporting
performance data. Measurement data is supported by source
documents.
This category is assigned under either one of two conditions:
1. Reported performance is within +/-3%, but the controls over
data collection and reporting are not adequate to ensure
Certified with Qualifications continued accuracy.
2. The department's calculation of actual performance deviates
from the measure definition, but was still within an acceptable
range.
Documentation is unavailable or incomplete and controls are not
Factors Prevented Certification adequate to ensure accuracy. This category is also assigned when
there is a deviation from the measure definition and the reviewer
cannot determine the correct measure result.
Inaccurate Actual performance is not within 3% of reported performance, or
there is a greater than 5% error in the sample of documents tested.
EXHIBIT: 2 -Additional References for Performance Management Software's
Description of Measure
1) Measure Name:
2) Measure Type:
3) Measure Description:
4) Measure Frequency:
5) Data Sources:
6) Calculation Methodology:
Should list the name of the measure for which data is being
collected and reported.
Should recognize whether the measure is an "Input", "Output", or
"Outcome" measure. One must consider whether results are
measured through input (Ex: Customer surveys), output (Ex:
Number of contracts completed without change orders), or outcome
(Ex: %of projects substantially completed or in beneficial use within
120 days).
Should describe the measure. Some measures are self
explanatory and some may not; however, a description should
always be included (Ex: The measure considers the% of change in
the value of the change orders for a specific category divided by the
original project cost).
Describes how often performance data is reported (Ex: Quarterly).
Should list sources used to collect performance data (Ex: System
Software Names, Report Names, Schedules, etc.)
Should explain how data reported was calculated (Ex: change
orders for that quarter divided by the original total projects costs,
projects substantially completed or in beneficial use within 120 days
of the contract milestone date divided by the total number of
projects completed during the same quarter).
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