LTC 304-2022 External Auditor's (RSM US LLP) Annual Report on the City of Miami Beach (the City) for the period ended September 30 2021304-2022
MIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC# LETTER TO COMMISSION
TO :
FROM :
Mayor Dan Gelber and Mem(Jffebers of.the City Commission
Alina T. Hudak, City Manag r
DATE : July 26, 2022
SUBJECT : External Auditor's (RSM US LLP) Annual Audit Report on the City of Miami Beach (the
City) for the period ended September 30, 2021
The following reports are currently available at https://www.miamibeachfl.gov/city-
hall/finance/financial-documents/
A. Annual Comprehensive Financial Report for the fiscal year ended September 30, 2021, which
includes an unmodified (clean) audit opinion
B. Audit Report for fiscal year ended September 30, 2021 which includes:
• Annual Comprehensive Financial Report
• Single Audit Reports in Accordance with Title 2 U.S . Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards (Uniform Guidance).
• Management Letter Report
• Independent Accountant's Report on Compliance with Section 218.415, Florida
Statutes
• Corrective Action Plan
• Affidavits of Impact Fees
C. Miami Beach Redevelopment Agency (RDA) Audit Report for the fiscal year ended September
30, 2021, which includes an unmodified (clean) audit opinion.
Enclosed, for your information, are the following documents :
A. The Auditor's letters to the Mayor and Members of the City Commission for both the City of
Miami Beach and the Miami Beach Redevelopment Agency (RDA) which include the following:
• Required Communications
• Significant Accounting Estimates
• Recorded Audit Adjustments
• Uncorrected misstatements
• Exhibit A -Internal Control Matters
• Exhibit B -Significant Written Communications Between Management and Our Firm
Representation Letters
• Exhibit C -Recent accounting pronouncements
The Auditor's Letter to the Mayor and Members of the City Commission for the City of Miami Beach
contains a Management Letter Comment pertaining to Financial Reporting resulting in a reclass of
balances in the financial statements as noted on page 4 of the Management Letter report. This reclass
included the accounting treatment of $11.7 M of American Rescue Plan Act monies received prior to
yearend but deferred to fiscal 2022. The City has since adjusted underlying documentation to include
the new item to its review process. Additionally, the City has begun procedures to add additional
resources to facilitate the audit process in future years . This item had no impact on the financial
statement opinion.
The Auditor's letters to the Mayor and Members of the City Commission for both the City of Miami Beach
and the Miami Beach Redevelopment Agency (RDA) include a Finding related to Internal Controls
Policies and Procedures. The finding pertains to a post-closing adjustment required to be disclosed and
recorded in the financial statements of the City and was considered a Material Weakness as noted in
the Schedule of Findings and Questioned Costs on page 12 of the report. The entry included additional
accruals for balances related to the City's $33.5 M settlement with Clark related to the Convention
Center. The City has since implemented additional procedures to ensure a more formal and in-depth
review of all possible losses/liabilities to the City. This item had no impact on the financial statement
opinion.
If you have any questions or need additional information, please feel free to contact Vyomie Greene at
305-673-7466.
fLP _'(j
A TH/ )Vi//vg
City of Miami Beach,
Florida
Report to the Honorable Mayor and Members of the
City Commission
June 17, 2022
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX I CONSULTING
■-RS~A
June 17 , 2022
Honorable Mayor and Members of the City Commission
City of Miami Beach , Florida
Miami Beach, FL
Attention: Honorable Mayor and Members of the City Commission
■-RS~A
RSM USLLP
801 Brickell Avenue
Suite 1050
Miami.FL 33131
T +1 305 442 8801
F +1 3054427478
www.rsmus.com
We are pleased to present this report related to our audit of the basic financial statements of the City of
Miami Beach , Florida (the City) as of and for the year ended September 30 , 2021 . We have also
performed the financial statement audits of the following City entities and funds:
Miami Beach Convention Center
Miami Beach Visitor's and Convention Authority
Miami Beach Redevelopment Authority
This report summarizes certain matters required by professional standards to be communicated to you in
your oversight responsibility for the City's financial reporting process.
This report is intended solely for the information and use of the Mayor, members of the Cit Commission
and management, and is not intended to be , and should not be , used by anyone other than these
specified parties. It will be our pleasure to respond to any questions you have about this report. We
appreciate the opportunity to continue to be of service to the City.
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX I CONSULTING
R~1 US LLP 1s the US member firm of RSM lnlcrn,1tion.JI . .J globul network of independent .:Judit tux .Jnd consulting fo ms. Vi~1t rsrnus com/ JbOUlLIS for more inforn"1t1on regarding RSM US LLP .:ind
RSM tntl'1 ncJlional
TABLE OF CONTENTS
Required Communications
Significant Accounting Estimates
Recorded Audit Adjustments
Uncorrected Misstatements
Exhibits
Exhibit A-Internal Control Matters
Exhibit B-Significant Written Communications Between Management and Our Firm
• Representation Letter
Exhibit C-Recent Accounting Pronouncements
1-4
5-6
7
8
REQUIRED COMMUNICATIONS
Auditing standards generally accepted a in the United States of America (AU-C 260 , The Auditor's
Communication With Those Charged With Governance) require the auditor to promote effective two-way
communication between the auditor and those charged with governance . Consistent with th is
requirement , the following summarizes our responsibilities regarding the basic financial statement audit
as well as observations arising from our audit that are significant and relevant to your responsibility to
oversee the financial and related compliance reporting process.
Our Responsibilities With Regard to the Financial Statement and Compliance
Audit
Our responsibilities under auditing standards generally accepted in the United States of America and
Government Auditing Standards issued by the Comptroller General of the United States have been
described to you in our arrangement letter dated October 1, 2021. Our audit of the basic financial
st atements does not relieve management or those charged with governance of their responsibilities ,
which are also described in that letter.
Overview of the Planned Scope and Timing of the Financial Statement Audit
We have issued a separate communication dated January 12 , 2022 , regarding the planned scope and
timing of our audit and identified significant risks .
Accounting Policies and Practices
Preferability of Accounting Policies and Practices
Under accounting principles generally accepted in the United States of America , in certa in circumstances,
management may select among alternative accounting practices. In our view , in such circumstances ,
management has selected the preferable accounting practice .
Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness of the accounting policies used by the
City. The following is a description of significant accounting policies or their application that were either
initially selected or changed during the year:
• The City adopted GASS 84 , Fiduciary Activities, during the current period which resulted in
restatement of beginning net position and fund balance of the governmental activities, the business-
type activities and the aggregate remaining fund information as of October 1, 2020 . Our opinion was
not modified with respect to this matter.
Significant Accounting Policies
We did not identify any significant accounting policies in controversial or emerging areas for which there
is a lack of authoritative guidance or consensus.
Significant Unusual Transactions
We did not identify any significant unusual transactions.
Management's Judgments and Accounting Estimates
Summary information about the process used by management in formulating particularly sensitive
accounting estimates and about our conclusions regarding the reasonableness of those estimates is in
the attached Summary of Significant Accounting Estimates .
1
Audit Adjustments and Uncorrected Misstatements
Audit adjustments, other than those that are clearly trivial, proposed by us and recorded by the City are
shown in the attached list of Recorded Audit Adjustments.
Uncorrected misstatements are summarized in the attached list of Uncorrected Misstatements .
Uncorrected misstatements or matters underlying these uncorrected misstatements could potentially
cause future-period financial statements to be materially misstated , even if we have concluded that the
uncorrected misstatements are immaterial to the financial statements under audit.
Departure From the Auditor's Standard Report
Expected Emphasis-of-Matter Paragraph
As discussed in Note 1 to the financial statements, the City adopted the recognition and disclosure
requirements of Governmental Accounting Standards Board Statement No. 84 , Fiduciary Activities. In
light of this matter, we will include an emphasis-of-matter paragraph in the auditor's report. Below is a
draft of the paragraph to be included in the auditor's report :
Emphasis of Matter
As discussed in Note 1 to the financial statements, the City adopted the recognition and disclosure
requirements of Governmental Accounting Standards Board Statement No. 84, Fiduciary Activities. The
beginning net position and fund balance of the governmental activities, the business-type activities and
the aggregate remaining fund information as of October 1, 2020 have been restated. Our opinion is not
modified with respect to this matter.
Other Information Included in Annual Reports
Our responsibility for other information included in annual reports is to read the information and consider
whether its content or the manner of its presentation is materially inconsistent with the financial
information covered by our auditor's report, whether it contains a material misstatement of fact or whether
the other information is otherwise misleading . We read the City's introductory section, the combining and
individual nonmajor fund financial statements and schedules , and the statistical section. We did not
identify material inconsistencies with the audited financial statements.
Key Audit Matters
Key audit matters are those matters that are communicated to those charged with governance and, in our
professional judgment, were of most significance in our audit of the financial statements of the current
period. These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we will not provide a separate opinion on these matters. We
determined the following matters to be key audit matters and will describe them in the auditor's report as
follows:
Key audit matters
Financial Reporting
Material accounting adjustments were made by management to the financial statements
to comply with generally accepted accounting principles. This included a material adjustment to the
Capital Projects fund and the Aggregate Nonmajor Fund relating to a legal settlement obligation. In
addition, a material adjustment to the Convention Center fund to eliminate intercompany transactions
between the City and the Convention Center. An adjusting entry for $14 .2 million was recorded to the
Capital Projects Fund and $12.9 million to the Aggregate Nonmajor Fund to record a liability relating to the
legal settlement. Transactions between the City and the Convention Center for $1 million were recorded
to eliminate intercompany balances on the City's annual comprehensive financial report.
2
Key audit matters
Accounting adjustments were made by management to the financial statements to comply with generally
accepted accounting principles . This included a reclass entry to the general fund for $11 .7 million which
was completed to reclassify the funding from unavailable revenues to unearned revenues since the
eligibility requirements had not been met as the City had not determined how it intended to utilize the
American Rescue Plan Act funds as of fiscal year end .
Observations About the Audit Process
Disagreements With Management
We encountered no disagreements with management over the application of significant accounting
principles, the basis for management's judgments on any significant matters, the scope of the audit or
significant disclosures to be included in the basic financial statements.
Consultations With Other Accountants
We are not aware of any consultations management had with other accountants about accounting or
auditing matters.
Significant Issues Discussed With Management
No significant issues arising from the audit were discussed or were the subject of correspondence with
management.
Significant Difficulties Encountered in Performing the Audit]
We did not encounter any significant difficulties in dealing with management during the audit.
Difficult or Contentious Matters That Required Consultation
We did not encounter any significant and difficult or contentious matters that required consultation outside
the engagement team .
Internal Control and Compliance Matters
We issued under, separate cover, the following reports in connection with our audit, as required by
Government Auditing Standards, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance) and Chapter 10 .550, Rules of the
Auditor General of the State of Florida:
• 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; Report on Internal
Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards as
Required by the Uniform Guidance
• Management Letter in Accordance with Chapter 10 .550, Rules of the Auditor General of the State of
Florida
• Financial and Compliance reports for the Children 's Trust
We will issue subsequent to this communication our Independent Auditor's Report on the stand-alone
financial statements of the Miami Beach Redevelopment Agency which consists of multiple funds
within the City's annual comprehensive financial report.
3
Significant Written Communications Between Management and Our Firm
Copies of significant written communications between our firm and the management of the City, including
the representation letter provided to us by management, are attached as Exhibit B .
4
SIGNIFICANT ACCOUNTING ESTIMATES
Accounting estimates are an integral part of the preparation of financial statements and are based upon
management's current judgment. The process used by management encompasses their knowledge and
experience about past and current events, and certain assumptions about future events . You may wish to
monitor throughout the year the process used to determine and record these accounting estimates. The
following summarizes the significant accounting estimates reflected in the City's September 30, 2021
basic financial statements .
Significant Accounting Estimates
Accounting for Self-Insurance Liabilities
Accounting policy The City is self-insured for general and auto liability, workers '
compensation , police professional liability , other liability and employees '
health and dental. The accrued liability for estimated claims represents an
estimate of the eventual loss on claims , including claims incurred but not
yet reported .
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
The City utilizes the services of two actuaries to assist in developing risk
reserves for these liabilities.
We have audited the underlying data supporting the estimates and
reviewed management's methodology, including evaluating the actuarial
reports and assumptions used which appears reasonable and
consistently applied , and have deemed the resulting estimates to be
reasonable .
Accounting for Pension Plans and Related Net Pension Liabilities
Accounting policy The net pension liabilities and related pension amounts are actuarially
determined in accordance with the parameters established by the
Governmental Accounting Standards Board. The difference between total
pension liability and plan fiduciary net position at each plans '
measurement date and any associated deferred outflows/inflows as of the
period ended are recognized in the financial statements.
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
Depreciation of Capital Asset
Accounting policy
City management and/or the pension plans ' management, with input from
its actuary , developed the actuarial assumptions based on relevant
criteria . City management reviewed and approved the financial statement
estimates derived from the pension plans ' actuarial reports .
We have audited the underlying data supporting the estimate and
reviewed management's methodology , including evaluating the actuarial
reports and assumptions used which appears reasonable and
consistently applied , and have deemed the resulting estimates to be
reasonable .
Depreciation on capital assets is provided using the straight-line method .
The depreciable life of capital assets is established based on
management's estimate of the useful lives of the assets.
5
Significant Accounting Estimates
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
Depreciation of capital assets is determined using the straight-line method
of depreciation over the estimated useful lives of the asset, as assigned
by management.
We have audited the underlying data supporting the estimate and
reviewed management's methodology which appears properly and
consistently applied and have deemed the resulting estimate to be
reasonable.
Allowance for Doubtful Accounts
Accounting policy
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
All trade and similar receivables are shown net of an allowance for
uncollectible amounts to arrive at the net realizable value.
Receivables are analyzed for their collectability based on the terms and
conditions stated in individual agreements. In addition to receivables
specifically identified as uncollectible , a general allowance is calculated
based on the City's historical experience .
We have audited the underlying data supporting the estimate and
reviewed management's methodology which appears properly and
consistently applied and have deemed the resulting estimate to be
reasonable .
Accounting for Other Post-Employment Benefits
Accounting policy Total other postemployment benefits (OPEB) liabilities, related deferred
OPEB amounts and expenses are actuarially determined in accordance
with the parameters established by the GASB .
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
Management with input from its OPEB actuary developed the actuarial
assumptions based on relevant criteria. Management reviewed and
approved the financial statement estimates derived from the OPEB
actuarial report .
We have audited the underlying data supporting the estimate and
reviewed management's methodology, including evaluating the actuarial
reports and assumptions used which appears reasonable and
consistently applied , and have deemed the resulting estimates to be
reasonable .
6
RECORDED AUDIT ADJUSTMENTS
Management corrected the following material misstatements that were identified as a result of our audit
procedures.
Convention Center Complex Fund
Opinion Unit
Description
Current year misstatements :
To eliminate intercompany transactions
between the City and the Convention Center
Statement of activities effect
Statement of financial position effect
Capital Projects Fund Opinion Unit
Description
Current year misstatements :
Asset
$ (1 ,947 ,851) $
$ (1 ,947,851) $
Asset
Effect-Debit (Credit)
Liabilities Net Pos ition Revenue Expense
1,947 ,851 $ $ $
1,947,851 $
Effect-Debit (Credit)
Liab ili ties Net Pos ition Revenue Expense
To record the Clark Construction legal
settlement _$ _____ $~(_14~,2_0_0~,0_00~)-$ $ $ 14 ,200 ,000
Statement of activities effect
Statement of financial position effect
Aggregate Remaining Fund Opinion Unit
$
Description Asset
Current year misstatements :
To record the Clark Construction legal
14,200,000 14 ,200 ,000
$ (14,200,000) $
Effect-Debit (Credit)
Liabilities Net Position Revenue Expense
settlement _$...._ ____ ..... $_.(_12_.,_90_0...._,o_o_o..._) $ $ $ 12 ,900 ,000
Statement of activities effect
Statement of financial position effect $
7
12 ,900 ,000 12,900,000
$ (12 ,900 ,000) $
I
UNCORRECTED MISSTATEMENTS
We identified the following uncorrected misstatements that management has concluded are not,
individually or in the aggregate, material to the basic financial statements. We agree with management's
conclusion in that regard.
Capital Projects Fund Opinion Unit Effect-Debit (Credit)
Description Asset Liabilities Net Position Revenue Expense
Current year misstatements :
To update the cash and investments balance
for the fair market value adjustment variance . $ (41 ,284) $ $ (41 ,284) $ $ 41,284
Statement of activities effect
Statement of financial position effect $ (41,284) $
8
41,284 41 ,284
$
EXHIBIT A
Internal Control Matters
City of Miami Beach,
Florida
Management Letter in Accordance
With Chapter 10.550, Rules of the Auditor General
of the State of Florida
Year Ended September 30, 2021
Contents
Management letter in accordance with the Rules of the Auditor General of the
State of Florida
Index of current year findings
Appendix A-Current year's recommendations to improve financial management
Independent Accountants Report on Compliance with Section 218.415 Florida Statutes
1-2
3
4
5
Honorable Mayor and
Management Letter in Accordance With the
Rules of the Auditor General of the State of Florida
Members of the City Commissioners
City of Miami Beach , Florida
Report on the Financial Statements
■-RSI\A
RSM USLLP
We have audited 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 fiscal year ended
September 30, 2021 and have issued our report thereon dated June 17, 2022. Our report includes a
reference to other auditors who audited the funds listed below. This management letter does not include
the results of the other auditors ' testing on internal control over financial reporting or compliance and
other matters that are reported on separately by those auditors.
Auditor's Responsibility
We conducted our audit 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 audit requirements of Title 2 U.S . Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements of Federal Awards (Uniform Guidance) and Chapter 10.550 , Rules of the Auditor General.
We did not audit the financial statements of the City of Miami Beach Florida Employees' Retirement Plan,
the City of Miami Beach Pension Fund for Firefighters and Police Officers, City of Miami Beach
Policemen's Relief and Pension Fund and the City of Miami Beach Firefighters' Relief and Pension Fund
which collectively represent 81 % of total assets/deferred outflows, 86% of total net position/fund balance
and 65% of total revenues/additions of the aggregate remaining fund information opinion unit. Those
financial statements were audited by other auditors whose reports have been furnished to us, and our
opinion , insofar as it relates to the amounts included for the City of Miami Beach Florida Employees'
Retirement Plan , the City of Miami Beach Pension Fund for Firefighters and Police Officers , City of Miami
Beach Policemen 's Relief and Pension Fund and the City of Miami Beach Firefighters' Relief and Pension
Fund, is based solely on the reports of the other auditors .
Other Reporting Requirements
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 Project and Report on Internal Control Over Compliance, Schedule of Findings and
Questioned Costs, and Independent Accountant's Reports on an examination conducted in accordance
With A/CPA Professional Standards, AT-C Section 315, regarding compliance requirements in
accordance with Chapter 10.550 , Rules of the Auditor General. Disclosures in those reports and
schedule, which are dated June 17, 2022, should be considered in conjunction with this management
letter.
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX I CONSULTING
RSM US LL0 ,s the U 5 nicnibc1 firm or RSM lntern~lt'on.JI ,1 _s;lob..il nct\·,ork of indcpr11dcm Jud,l LH .• 1nd conslilt n~ firms Visit rsmus com .Jboutus fo1 n•ore infamut1on rec,arding RSM US LLP .. md
~SM lnlf"P"l.'.ltion.,
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 financial audit
report. Corrective actions have been taken to address findings and recommendations made in the
preceding financial audit report .
Official Title and Legal Authority
Section 10 .554(1 )(i)4 ., Rules of the Auditor General , requires tha t 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. The information is disclosed
in Note 1 to the City 's financial statements .
Financial Condition and Management
Sections 10 .554(1 )(i)5.a , and 10 .556(7), Rules of the Auditor General, requires us to apply appropriate
procedures and communicate 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.b . 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.
Section 10 .554(1 )(i)2 ., Rules of the Auditor General , requires that we communicate any
recommendations to improve financial management. The recommendations to improve the City 's financial
management have been addressed in "Current Year's Recommendations to Improve Financia l
Management" in Appendix A to this letter. Management's responses to the recommendations to improve
the C ity 's financial management have been addressed in "Current Year's Recommendations to Improve
Financial Management" in Appendix A to this letter.
Addit ional Matters
Section 10 .554(1 )(i)3., Rules of the Auditor General , requires us to communicate 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 find ings .
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 Honorable Mayor and City Commissioners , and
applicable management, and is not intended to be and should not be used by anyone other than these
specified parties .
Miami , Florida
June 17 , 2022
2
City of Miami Beach, Florida
Index of Current Year Findings
No. Current Year's Observations and Recommendations
ML 2021-001 Financial Reporting
3
City of Miami Beach, Florida
Appendix A-Current Year's Recommendations to Improve Financial Management
ML 2021-00 1 Financial Reporting
Criteria: Internal control policies and procedures should provide reasonable assurance regard ing
the reliability of the financial reporting process, including the accurate recording and disclosure of
accounting transactions .
Condition: Accounting adjustments were made by management to the financial statements to
comply with generally accepted accounting principles. A reclass entry for $11 .7 was completed to
reclassify the funding from unavailable revenues to unearned revenues since the eligibility
requirements had not been met as the City had not determined how it intended to utilize the
American Rescue Plan Act funds as of fiscal year end .
Cause: Established controls requiring the reconciliation and review of account balances failed to
identify the errors noted . Additionally , due to the effects of the pandemic and some staff turnover,
the Finance Department had less accounting personnel in key roles to perform all necessary
functions in a timely and accurate manner. As a result, the Finance Department relied heavily on a
few key employees to perform certain critical accounting functions .
Effect or potential effect: Unearned revenues were understated and deferred inflows were
overstated until the entry was made however they would not have a significant effect as they are
s imilar in nature at the fund level.
Recommendation: We recommend that management review the design of established controls
and implement the changes necessary to allow for the accurate recording and disclosure of
accounting transactions . Additionally , the Finance Department should work with City management
to assess the needs of the department and consider the need for additional resource changes or
additions to staffing , additional training , etc .to fill the open positions that are vital to their operations .
Views of Responsible Officials and Planned Corrective Action: The City will continue to closely
review post-closing entr ies , payments , and year end checklists to ensure proper inclusion/exclusion
of obligations in financial reporting. Management will also continue to tra in current employees and
continue efforts to recruit for key positions and also Management will seek to engage additional
resources and innovative teams to maximize production .
4
■-RSI\A
Independent Accountant's Report
Honorable Mayor, Members of the
City Commission and City Manager
City of Miami Beach , Florida
RSM USLLP
We have examined the City of Miami Beach, Florida's (the City) compliance with Section 218.415,
Florida Statutes, and Local Government Investment Policies during the period October 1, 2020 to
September 30 , 2021 . Management of the City is responsible for the City's compliance with the specified
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 . 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 aforementioned requirements for the
period October 1 , 2020 to September 30, 2021 .
The purpose of this report is to comply with the local government investment policy requirements of
Section 218.415 , Florida Statutes, and Rules of the Florida Auditor General.
This report is intended solely for the information and use of the Florida Auditor General , the Honorable
Mayor, Members of the City Commission , the City Manager, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
Miami, Florida
June 17, 2022
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX I CONSULTING
5
RSM US LLP •s the U 5 rnember f1r1n of RSM lnlcm~ll!ot1,1l J glolJJ! network of independent ,1odit t,1:,,, .Jnd ccns11lt ng firms V1s1t rsmus.c.01111 .Jboutll~ for n'ore 111forrnut1011 rcgJrd:ng RSM US LLP JrJd
RSM lnt<'rn:lt1on,,I
City of Miami Beach,
Florida
Single Audit Reports in Accordance with
Uniform Guidance and Chapter 10.550,
Rules of the Florida Auditor General
Fiscal Year Ended September 30, 2021
Contents
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
Report on compliance for each major federal program and major state
project; report on internal control over compliance; and report on the schedule of
expenditures of federal awards and state financial assistance required by the Uniform
Guidance and Chapter 10.550, Rules of the Florida Auditor General
Schedule of expenditures of federal awards and state financial assistance
Notes to schedule of expenditures of federal awards and state financial assistance
Schedule of findings and questioned costs
Summary schedule of prior audit findings
Corrective action plan
1-2
3-4
5-8
9
10-12
13
14
■-
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
Honorable Mayor and Members
of the City Commission
City of Miami Beach, Florida
RS~A
RSMUSLLP
We have audited, in accordance with the 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, 2021, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements, and have issued our report thereon dated
June 17, 2022. Our report included a reference to other auditors who audited the financial statements of
the City of Miami Beach Employees' Retirement Plan, City of Miami Beach Pension fund for Firefighters
and Police Officers, City of Miami Beach Police Officer's Relief and Pension Fund, and the City of Miami
Beach Firefighters' Relief Pension Fund. This report does not include the results of the other auditors'
testing on internal control over financial reporting or compliance and other matters that are reported on
separately by those auditors. The financial statements of the City of Miami Beach Police Officer's Relief
and Pension were not audited in accordance with Government Auditing Standards and accordingly this
report does not include reporting on internal controls over financial reporting or instances of reportable
noncompliance associated with the City of Miami Beach Police Officer's Relief and Pension .
Report on 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) as a basis for designing 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 entity'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 .
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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 weak nesses or significant deficiencies may
exist that have not been identified. We identified a deficiency in internal control , described in the
accompanying schedule of findings and questioned costs as item 2021-001 that we consider to be a
material weakness .
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
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
financial statements. 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 instance of noncompliance or other matters that are required to be reported under
Government Auditing Standards .
City's Response to Finding
The C ity's resp onse to the findings identified in our audit is described in the accompanying schedule of
findings and questioned costs . 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 and compliance
and the results of that testing, and not to prov ide an opinion on the effectiveness of the entity'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.
Miami , Florida
June 17 , 2022
2
·-RS"/1
RSM USLLP
Report on Compliance fo r Each Major Federal Program and State Project; Report on Internal
C ontrol Over Compliance; and Report on the Schedules of Ex penditures
of Federal Awards and State Financial Assistance Required by the Uniform Guidance
and Chapter 10.550, Rules of the Florida Auditor General
Independent Auditor's Report
Honorable Mayor and City Commissioners
City of Miami Beach , Florida
Report on Compl iance for Each Major Federal Program and Major State Project
We have audited the City of Miami Beach, Florida's (the City) compliance with the types of compliance
requirements described in the 0MB Compliance Supplement and the requirements described in the
Florida Department of Financial Services ' State Project Compliance Supplement, that could have a direct
and material effect on each of the City 's major federal programs and state projects for the year ended
September 30, 2021 . The City 's major federal programs and state projects are identified in the summary
of auditor's results section of the accompanying schedule of findings and questioned costs . ·
Management's Responsibility
Management is responsible for compliance with federal and state statutes , regulations , and the terms and
conditions of its federal awards and state financial assistance applicable to its federal programs and state
projects .
Auditor's Responsibility
Our responsibil ity is to express an opinion on compliance for each of the City's major federal programs
and state projects based on our audit of the types of compliance requirements referred to above . We
conducted our audit of compliance 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; and the audit requirements of 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 Florida
Auditor General. Those standards and the Uniform Guidance and Chapter 10 .550 , Rules of the Florida
Auditor General, require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program or major state project occurred . An audit includes
examining , on a test basis , evidence about the City 's compliance with those requirements and performing
such other procedures , as we considered necessary in the circumstances .
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program and state project. However, our audit does not provide a legal determination of the City's
compliance .
Opinion on Each Major Federal Program and Major State Project
In our opinion , the City complied , in all material respects , with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs and
state projects for the year ended September 30 , 2021 .
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AUDIT I TAX I CONSULTING
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Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our audit of
compliance , we considered the City's internal control over compliance with the types of requirements that could
have a direct and material effect on each major federal program and major state project to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and major state project and to test and report on internal control
over compliance in accordance with the Uniform Guidance and Chapter 10 .550 , Rules of the Florida Auditor
General, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly , we do not express an opinion on the effectiveness of the City 's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions , to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or
state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance , such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of a federal program or state project will not be
prevented, or detected and corrected, on a timely basis . A significant deficiency in internal control over
compliance is a deficiency , or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in internal control
over compliance , yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may exist
that have not been identified .
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance and Chapter 10.550, Rules of the Florida Auditor General. Accordingly, this report is not suitable for
any other purpose .
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance and
Schedule of State Financial Assistance Required by Chapter 10.550, Rules of the Florida Auditor
General
We have audited the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City , as of and for the year ended September 30,
2021, and the related notes to the financial statements, which collectively comprise the City's basic financial
statements. We issued our report thereon dated June 17, 2022, which contained an unmodified opinion on
those financial statements , and included a reference to other auditors. Our audit was conducted for the purpose
of forming opinions on the financial statements that collectively comprise the basic financial statements. The
accompanying schedule of expenditures of federal awards and schedule of expenditures of state financial
assistance are presented for purposes of additional analysis as required by the Uniform Guidance and Chapter
10.550, Rules of the Florida Auditor General and are not a required part of the basic financial statements . 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 statements. The information has been subjected to
the auditing procedures applied in the audit of the financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion , the schedule of expenditures of federal awards and schedule of state financial assistance are
fairly stated in all material respects in relation to the basic financial statements as a whole.
Miami, Florida
June 17, 2022
4
City of Miami Beach, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2021
Federal Grantor/Pass-Through Grantor/Program or Cluster Title
U.S. Department of Agriculture
Hurricane Irma Emergency Watershed Protection
Total U.S. Department of Agriculture
U.S. Department of Housing and Urban Development
Covid-19 -Community Development Block GranU Entitlement Grants
Community Development Block GranU Entitlement Grants
Community Development Block GranU Entitlement Grants
Community Development Block GranU Entitlement Grants
Community Development Block GranU Entitlement Grants
Covid-19-Community Development Block GranV Entitlement Grants
Community Development Block GranU Entitlement Grants
Community Development Block GranU Entitlement Grants
Total Community Development Block Grant -Entitlement Grants Cluster
Home Investment Partnerships Program
Home Investment Partnerships Program
Home Investment Partnerships Program
Hom e Investment Partnersh ips Program
Home Investment Partnerships Program
Home Investment Partnersh ips Program
Home Investment Partnersh ips Program"'
Home Investment Partnerships Program
Total HOME Investment Partnerships Program
Pass-Through Miami-Dade County , Florida:
Supportive Housing Program -FY 2019/Continuum of Care -City of Miami Beach Outreach Program
Total Supportive Housing Program -Conti nu mm of Care
Total U.S . Department of Housing and Urban Development
5
Assistance Listing
Number
10.923
14.218
14.218
14.218
14 .218
14.218
14.218
14.21 8
14 .2 18
14.239
14.239
14.239
14.239
14.239
14.239
14.239
14.239
14.267
Grant/Pass-Through Entity
Identifying Number
NR184209XXXXC012
B-19-MC-12-00 14/B-20-MW-12-0014
B-17-MC-12-00 14
B-14-MC-12-0014
B-18-MC-12-0014
B-11-MC-12-0014
B-20-MC-12-0014
B-15-MC-12-0014
B-16-MC-12-0014
M-09-MC 120 2 12
M-10-MC120212
M-16-MC 120 2 12
M-19-MC120212/M-15-MC120212
M-12-MC 120212/M-20-MC 120212
M-14-MC120212
M-17-MC120212
M-18-MC120212
FL0177L4D001912
$
Provided to
Subrecipients
200,948
116 ,520
108,082
278,033
1,017,144
17 ,238
217,926
1~891
4,743
123 ,598
58 ,329
37 ,342
8 ,904
10,135
243,051
2,198,942
$
Total Federal
Expenditures
(33,618)
(33,618)
200 ,948
120 ,371
108 ,082
303 ,927
8,987
1,017,144
17 ,238
273 ,258
2,049,955
4,743
123,598
58 ,329
41 ,601
14,971
10,135
253,377
42 ,061
42,061
2,345,393
City of Miami Beach, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2021
Federal Grantor/Pass-Through Grantor/Program or Cluster Title
U.S. Department of Justice
Pass-Through Office of The Florida Attorney General :
VICTIMS OF CRIME ACT 2020/21
National Crime Victims' Rights Week Community Awareness Project
Pass-Through Florida Department of Law Enforcement:
Edward Byrne Memorial Justice Assistance Grant -Officer Safety and Wellness
Edward Byrne Memorial Justice Assistance Grant -Reducing Violent Crimes
Total Florida Department of Law Enforcement
Miami Beach Coronavirus Emergency Program
Cops Office Law Enforcement Mental Health and Wellness Act Program-Miami Beach Peer Support Project
Federal Equitable Sharing Agreement
Total U.S. Department of Justice
U.S. Department of Transportation
Pass-Through the Florida Department of Transportation :
State and Community Highway Traffic Safety Program-Motorcycle Safety Campaign
State and Community Highway Traffic Safety Program-Speed/Aggressive Driving Initiative
National Priority Safety Program-Impaired Driving Initiative
National Priority Safety Program-Miami Beach Occupant Protection and Child Passenger Initiative
Total Highway Safety Cluster
Highway Planning and Construction-Northshore Open Space Beachwalk
Highway Planning and Construction-Middle Beach Recreational Corridor Phase Ill
Total Highway Planning and Construction Cluster
Total U.S . Department of Transportation
COVID -19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund -Medicare and
Medicaid Services
Total Health Resources and Services Administration
6
Assistance Listing
Number
16 .575
16.582
16.738
16.738
16.034
16.710
16.922
20.600
20.600
20.616
20.616
20 .205
20.205
93.461
Grant/Pass-Through Entity
ldenti~ Number
VOCA-2020-MBPD-00525
2018-V3 -GX-K016
2021-JAGC-DADE-6-5R-119
2020-JAGC-DADE-16-Y5-159
2020-VD-BX-0503
2020-MH-WX-K013
FL0130700
G1R47
G1S20
G1S67
G1U78
G1P47
G1552
75-0140-0-1-550
Provided to
Subrecie,ients
Total Federal
Exe,enditures
434,470
4,410
8,644
9,007
17 ,651
4 ,900
17,590
51 ,931
530,952
75 ,000
37 ,799
73 ,002
25,952
211,753
329 ,501
200,000
529,501
741,254
33 ,537
33 ,537
City of Miami Beach, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2021
Federal Grantor/Pass-Through Grantor/Program or Cluster Title
U.S. Department of Homeland Security
Pass-Through the State of Florida Division of Emergency Management:
Hurricane Irma
Emergency Food and Shelter Prog ram -Phase 35
Emergency Food and Shelter Program -Phase 36
Pass-Through the State of Florida Division of Emergency Management:
Ha zard Mitigation Grant Program -Wind Retrofit
Hazard Mitigation Grant Program -Wind Retro fit
Hazard Mitigation Grant Program -Wind Retrofit
Homeland ~ecurity Grant 1--'rogram -Urban Areas ~ecunty Initiative ~W1!1
Total U.S. Department of Homeland Security
U.S. Department ot The Treasury
Pass-T hrough Miami-Dade County, Florida:
Covid-19-Coronavirus Relief Fund -CARES Act (Covid-19)
Total Coronavirus Relief Fund -CARES Act (Covid-19)
Covid-19-Coronavirus Relief Fund -CARES Act (Covid-19)
Total Coronavirus Rel ie f Fund -CARES Act (Covid-19)
Total U.S. Department of Treasury
TOTAL EXPENDITURES OF FEDERAL AWARDS
See notes to schedule of expenditures of federal awards and state financial assistance .
7
Assistance Listing
Number
97.036
97.024
97.024
97.039
97.039
97.039
97.067
21 .019
21.019
Grant/Pass-Through Entity
ldenti~ Number
08-45025-00
159400-076
159400-076
FEMA-DR-433 7-FL
FEMA-DR-4337-FL
FEMA-DR-4337-FL
EMW-2019-SS-00049
20-1892-0-1-806
B-20-MW-12-0014
$
Provided to
Subrecip_ients
Total Federal
Exp_enditures
5,444 .235
15 ,186
11,825
(4,286)
19 ,806
16,575
32,095
39,473
5,542,814
38 ,976,791
38,976,791
410 ,472
410,472
39 ,387,263
2,198,942 $ 48,547,595
City of Miami Beach, Florida
Schedule of Expenditures of State Financial Assistance
For the Fiscal Year Ended September 30, 2021
State Grantor/Pro.9.ram
State of Florida, De_1>_artment of Environmental Protection
Statewide Surface Water Restoration and Waslewater Projecls -Miami Bea ch Waler Line Replacement on Allon Road from Michigan Ave to North Bay Rd.
and 43rd Street lo 63rd Street Projecl
Total State of Florida, Department of Environmental Protection
State of Florida, HousinJ!_Finance C_<>l]l_oration
State Housing Initiatives Partnership (SHIP) Program
Total State of Florida, Housing Finance Corporation
Florida De_1>_artment of Transportation
A1A Indian Creek Corridor
Lo ca lly Funded Agreement -Transportation Management Initiative Agreement
Miami Beach Atlantic Trail Greenway Corridor from South Pointe Park to 871h Terrace
Public Transit Service Development Program -South Beach Loop Trolley Rou te
Total Florida Department of Transportation
Florida De_1>_artment of Health
Pass-Through Miami-Dade Counly, Florida :
Emergency Medical Services
1 otal t-1or1oa uepartment ot Heann
Florida Department of Law Enforcement
FY 19-20 Identity Theft and Fraud Grant Program
Total Florida Department of Law Enforcement
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE
See notes to schedules of expenditures of federal awards and state financial assistance.
8
Grant/Pass-Through Entity
ldenti.!l'.!!!-9. Number
LP1 3134/LP13135
NIA
AS-343/439228-2-58-01
422239-2-12-01
GOQ53
G1C66
M9062
2020-SFA-ITF-43-20-002
State
CSFA
Number
37.039
40 .901
55.000
55.039
55.038
55.012
64.005
71 .042
$
Total State
Exe_enditures
94 ,322
94,322
155J02
155,702
4,173,819
3,727
1,341,667
876,971
6,396,184
24JOB
24,708
8,366
8 ,366
6,679,282
City of Miami Beach, Flo r ida
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Fiscal Year Ended September 30, 2021
Note 1. Basis of Presentation
The accompanying schedules of expenditures of federal awards and state financial assistance (the
Schedules) include the federal and state award activity of the City of Miami Beach, Florida (the City)
under programs of the Federal government and the State of Florida for the year ended September 30 ,
2021 . The information in the Schedules are presented in accordance with the requirements of the 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 Florida
Auditor General. Because the Schedu les present on ly a selected portion of the operations of the City, it is
not intended to and does not present the financial position , changes in fund balance/net position, or cash
flows of the City.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedules are reported on the modified accrual basis of accounting for
expenditures accounted for in the governmental funds and on the accrual basis of accounting for
expenses of the proprietary fund types , which are described in Note 1 to the City's basic financial
statements . Such expenditures/expenses are recognized following the cost principles contained in the
Uniform Guidance and Chapter 10.550, Rules of the Florida Auditor General, wherein certain types of
expenditures/expenses are not allowable or are limited as to reimbursement. Negative amounts shown on
the Schedules represent adjustments or credits made in the normal course of business to amounts
reported as expenditures in prior years.
Note 3. Indirect Cost Recovery
The City has elected not to use the 10 percent de mini mis indirect cost rate as allowed under the Uniform
Guidance .
Note 4. Loans Outstanding
On November 12, 2014, the City of Miami Beach entered into the Clean Water State Revolving Fund
Loan Agreement with the State of Florida Department of Environment Protection . On November 24, 2020,
Amendment No.1 to the Loan Agreement was executed . The semiannual loan payment amount is based
on the total amount of $7,697,180, which consist of the Loan principal , accrued Capitalized Interest plus
the Loan Service Fee . Loan payments commenced on February 15 , 2018 and semiannually thereafter on
August 15 and February 15 of each year until all amounts due have been fully paid . The interest rate on
this loan is 1.62% per annum . Loan disbursements from the State to the City will be made for
reimbursements of allowable costs. The loan is recorded as a loan payable in the governmental activities
of the City's government wide statements . As of September 30, 2021 , $7.5 million of allowable costs have
been incurred by the City and $7 .5 million has been reimbursed from the State . The loan is secured by
the Stormwater fund 's pledged revenues and will be repaid with such funds. The outstanding principal
balance reported at September 30 , 2021 , is $6,252,155, which consist of Loan Principal and Service Fee .
9
City of Miami Beach, Florida
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2021
Section I . Summary of Auditors' Results
Financial Statements
Type of report the auditor issued on whether the financial
statements audited were prepared in accordance with
GAAP:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Noncompliance material to
financial statements noted?
Federal A wards
Internal control over major federal programs:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for
major federal programs:
Any audit findings disclosed that are required
to be reported in accordance with section
2 CFR 200 .516(a)?
Identification of major federal programs:
Federal Assistance Listing No.
21.019
Dollar threshold used to distinguish between type
A and type B programs:
Auditee qualified as low-risk auditee?
Unmodified
X Yes No --------Yes X None reported ----
Yes X No
Yes X No --------Yes x None reported ----
Unmodified
Yes X No --------
Name of Federal Program or Cluster
Coronavirus Relief Fund -CARES Act (Covid-
19)
$1,456,428
Yes X No
(Continued)
10
City of Miami Beach, Florida
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2021 (Continued)
State Financial Assistance:
Internal control over major projects:
Material weakness(es) iden tified?
Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for
major projects:
Any audit findings disclosed that are required
to be reported in accordance with Chapter 10.550,
Rules of the Auditor General?
Identification of major state projects:
State Assistance Listing No.
55 .000
Dollar threshold used to distinguish between type
A and type B projects:
----
----
(Continued)
11
Yes X No ----Yes __ x __ Nonereported
Unmodified
Yes X No
Name of State Project
A 1 A Indian Creek Corridor
$750,000
City of Miami Beach, Florida
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2021 (Continued)
Section II. Financial Statement Findings
IC 2021-001 -Financial Reporting -Material Weakness
Criteria: Internal control policies and procedures should provide reasonable assurance regarding the
reliability of the financial reporting process, including the accurate recording and disclosure of
accounting transactions .
Condition: Material accounting adjustments were made by management to the financial statements
to comply with generally accepted accounting principles. This included a material adjustment to the
Capital Projects fund and the Aggregate Nonmajor Fund relating to a legal settlement obligation . In
addition, a material adjustment to the Convention Center fund to eliminate intercompany transactions
between the City and the Convention Center.
Cause: Established controls requiring the reconciliation and review of account balances failed to
identify the errors noted and the recognition of outstanding obligations were not recorded in the
correct period.
Effect or potential effect: An adjusting entry for $14 .2 million was recorded to the Capital Projects
Fund and $12 .9 million to the Aggregate Nonmajor Fund to record a liability relating to the legal
settlement. Transactions between the City and the Convention Center for $1 million were recorded to
eliminate intercompany balances on the City's annual comprehensive financial report.
Recommendation: We recommend that management review the design of established controls and
implement the changes necessary to allow for the accurate recording and disclosure of accounting
transactions. Necessary controls should include review of possible losses and/or obligations by
appropriate levels of management across critical areas in the City .
Views of Responsible Officials and Planned Corrective Action: Management has an established
procedure in place to review risk and liabilities cases quarterly to ensure appropriate inclusion in
estimates . Additionally, Management will establish an annual end of year review of all open and
recently closed legal/risk matters exceeding an established materiality threshold to determine if
additional obligations should be recorded at year end. Finally, the City will continue to closely review
post-closing entries, payments, and year end checklists to ensure proper inclusion/exclusion of
obligations in financial reporting.
Section Ill. Federal Awards and State Projects Findings and Questioned Costs
No matters to report.
12
City of Miami Beach, Florida
Summary Schedule of Prior Year Audit Findings
Fiscal Year Ended Septem ber 30, 2021
MIAMI BEACH
C ity Of Miami Beach, 1700 Convetnion Center Dri v e , Miami Beach, Florida 33139 www.miamibeachfl.gov
Summary of Prior Year Findings
Audit Finding Number: IC 2020-0001 Worker's Compensation Liability -Significant Deficiency
Audit Finding: A material accounting adjustment was made by management to the financial statements
to comply with generally accepted accounting principles with regard to the recording of the worker's
compensation (WC) liability to the self-insurance fund to adjust and elim i nate an excess reserve
provided by the actuary base method, which was not consistent with past practices .
Status of Finding: Corrected. Matter Not repeated .
13
MIAMI BEACH
City of Miami Beach , 1700 Convention Center Drive, Miami Beach, Fl orida 33139 , www.miamibeachfl.gov
Corrective Action Plan
Year Ended September 30 , 2021
Audit Finding Number: IC 2021-001 -Financial Reporting-Material Weakness
Audit Criteria: Internal control policies and procedures should prov ide reasonable assurance
regarding the reliability of the financ ial reporting process , including the accurate recording and
disclosure of accounting transactions.
Cond it ion: Material accounting adjustments were made by management to the financial
statements to comply with generally accepted accounting principles . This included a material
adjustment to the Capital Projects fund and the Aggregate Nonmajor Fund relating to a legal
settlement obliga ti on. In addition, a material adjustment to the Convention Center fund to
eliminate intercompany transactions between the City and the Convention Center.
Cause: Established controls requiring the reconciliation and review of account balances failed to
identify the errors noted and the recognition of outstanding obligations were not recorded in the
correct period .
Effect or potential effect: An adjusting entry for $14 .2 million was recorded to the Capital Projects
Fund and $12.9 million to the Aggregate Nonmajor Fund to record a liability relating to the legal
settlement. Transactions between the City and the Convention Center for $1 million were recorded
to eliminate intercompany balances on the City's annual comprehensive financial report .
Recommendation: We recommend that management review the design of established controls
and implement the changes necessary to allow for the accurate recording and disclosure of
accounting transactions. Necessary controls should include review of poss ible losses and/or
obligations by appropriate levels of management across critical areas in the City.
Views of Responsible Officials and Planned Corrective Action: Management has an
established procedure in place to review risk and liabilities cases quarterly to ensure appropriate
inclusion in estimates . Additionally , Management will establish an annual end of year review of
all open and recently closed legal/risk matters exceeding an established materiality threshold to
determine if additional obligations should be recorded at year end. Finally , the City will continue
to closely review post-closing entries , payments , and year end checklists to ensure prope r
inclusion/exclusion of obligations in financial reporting .
Submitted by:
ti£~~ , I
Al)stant F ina nce Director
EXHIBIT 8
Significant Written Communications Between
Management and Our Firm
MIAM I BEACH
City of Miami Beach , 1700 Conve ntio n C enter Drive, Miami Beach , Florida 33139 , www.miamibeachfl.g ov
FINA NC E DEPART MEN T
June 17, 2022
RSM US, LLP
801 Brickell Avenue , Suite 1050
Miami , FL 33131
This representation letter is provided in connection with your audit of the basic financial statements of the
City of Miami Beach, Florida (the City) as of and for the year ended September 30 , 2021 for the purpose
of expressing an opinion on whether the financial statements are presented fairly, in all material respects ,
in accordance with accounting principles generally accepted in the United States of America (U .S.
GAAP).
We confirm, to the best of our knowledge and bel ief, that as of the date of this letter:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
October 1, 2021, for the preparation and fair presentation of the financial statements referred to
above in accordance with U.S . GAAP.
2 . We acknowledge our responsibility for the design, implementation and maintenance of internal control
relevant to the preparation and fair presentation of financia l statements that are free from material
misstatement , whether due to fraud or error.
3 . We acknowledge our responsibility for the design, implementation and maintenance of controls to
prevent and detect fraud .
4 . The methods, data, and significant assumptions used by us in making accounting estimates and their
related disclosures are appropriate to achieve recognition, measurement, or disclosure that is
reasonable in the context of U.S. GAAP, and reflect our judgment based on our knowledge and
experience about past and current events , and our assumptions about conditions we expect to exist
and courses of action we expect to take .
5. The methods , assumptions and data used to measure the City's self-insurance program result in an
estimate that is appropriate for financial statement measurement and disclosure purposes and have
been consistently selected and appl ied in making the estimate. Significant judgments made in
making the estimate have taken into account all relevant information of which we are aware.
Appropriate specialized skills or expertise has been applied in making the estimate. All disclosures
related to the estimate, including disclosures describing estimation uncertainty, are complete and
reasonable in the context of U.S. GAAP . No subsequent events have occurred that would requ ire
adjustment to the estimate and related disclosures included in the financial statements .
6 . The methods, assumptions and data used to measure the City's net OPEB liability and related OPEB
amounts, are as follows , and result in an estimate that is appropriate for financial statement
measurement and disclosure purposes and have been consistently selected and applied in making
the estimate. Entry Age Normal Cost Method , using fair market value for asset valuation, salary
increases of 3.5% per annum and inflation of 3% per annum . Significant judgments made in making
the estimate have taken into account all relevant information of which we are aware . Appropriate
specialized skills or expert ise has been applied in making the estimate. All disclosures related to the
estimate , including disclosures describing estimation uncertainty , are complete and reasonable in the
context of U .S . GAAP . No subsequent events have occurred that would require adjustment to the
estimate and related disclosures included in the financial statements .
7. The methods , assumptions and data used to measure the City 's pension plans ' net pension liability
and related pension amounts are as follows, and result in an estimate that is appropriate for financial
statement measurement and disclosure purposes and have been cons istently selected and applied in
making the est imate . Entry Age Normal Method, amort ized using level dollar closed with an
investment rate of return of 7.4% for the General Employee retirement system and 7.65% for the
Firefighters and Police retirement system . Significant judgments made in making the estimate have
taken into account all relevant information of which we are aware . Appropriate specialized skills or
expertise has been applied in making the estimate . All disclosures related to the est imate , including
disclosures describing estimation uncertainty , are complete and reasonable in the context of U.S.
GAAP . No subsequent events have occurred that would require adjustment to the estimate and
related disclosures included in the financial statements .
8. Related-party transactions have been recorded in accordance with the economic substance of the
transaction and appropriately accounted for and disclosed in accordance with the requirements of
U.S. GAAP . Types of related party transactions engaged in by the City include :
a . Those with component units for which the C ity is accountable.
b. Those with other organizat ions for which the nature and significance of their relationship with the
City are such that exclus ion would cause the reporting entity's financial statements to be
misleading or incomplete.
c. lnterfund transactions, in cluding interfund accounts and advances receivable and payable and
interfund transfers.
9. The financial statements properly classify all funds and activities in accordance with GASB Statement
No. 54 , Fund Balance Reporting and Governmental Fund Type Definitions , as amended .
10 . The C it y is following either its established accounting policy regarding which resources {that is,
restricted , committed, assigned or unassigned) are considered to be spent first for expenditures for
which more than one resource classification is available or is fo llowing paragraph 18 of GASB
Statement No. 54 to determine the fund balance classifications for financial reporting purposes.
11. The financial statements include all fiduciary activities required by GASB Statement No. 84 , Fiduciary
Activities, as amended .
12. All events subsequent to the date of the financial statements , and for which U.S. GAAP requires
adjustment or disclosure , have been adjusted or d isclosed .
13. The effects of a ll known actual or possible litigation and claims have been accounted for and
disclosed in accordance with U.S. GAAP .
14 . Management has followed applicable laws and regulations in adopting, approving and amending
budgets .
15 . Capital assets, including infrastructure , intangible assets , and right of use assets are properly
capitalized , reported and, if applicable , depreciated.
16 . The government has properly separated information in debt disclosures related to direct borrowings
and direct placements of debt from other debt and disclosed any unused lines of credit , collateral
pledged to secure debt , terms in the debt agreements related to significant default or termination
events with finance-related consequences and significant subjective acceleration clauses in
accordance with GASB Statement No. 88.
17. Components of net position (net investment in capital assets , restricted, and unrestricted) and
classifications of fund balance (nonspendable, restricted , committed, ass igned, and unassigned) are
properly classified and , if applicable , approved .
18. Revenues are appropriately classified in the statement of activities within program revenues, general
revenues , contributions to term or permanent endowments , or contributions to permanent fund
principal.
19. Expenses have been appropriately classified in or allocated to functions and programs in the
statement of activities , and allocations have been made on a reasonable basis .
20. lnterfund, internal, and intra-entity activity and balances have been appropriately classified and
reported .
21. The City's po licy regarding whether to first apply restricted or unrestricted resources when an
expense is incurred for purposes for which both restricted and unrestricted net position is available
and appropriately disclosed and that net position is properly recognized under the policy.
22. We believe that the actuarial assumptions and methods used to measure the City 's risk, OPEB and
pension liabilities and related costs for financial accounting purposes are appropriate in the
circumstances.
23. We have no direct or indirect legal or moral obligation for any debt of any organization , public or
private , or to special assessment bond ho lders , that is not disclosed in the financial statements .
24 . We have complied with all aspects of laws, regulations and provisions of contracts and agreements
that would have a material effect on the financia l statements in the event of noncompliance
25. We have informed you of all uncorrected misstatements.
As of and for the year ended September 30, 2021, we believe that the effects of the uncorrected
misstatements aggregated by you and summarized below are immaterial, both individually and in the
aggregate, to the opinion units of the basic financial statements. For purposes of this representation,
we consider items to be material , regardless of their size, if they involve the misstatement or omission
of accounting information that, in light of surrounding circumstances , makes it probable that the
judgment of a reasonable person relying on the information would be changed or influenced by the
omission or misstatement.
Cpaital Projects Fund Opinion Unit
Descriptio n
Current year misstatements:
To update the cash and in ves tmen ts
balance for the fair market value adjustment
variance.
Statemen t of activities effect
Statement of financial position effect
Asset
$ (41 ,284 ) $
$ (41 ,284) $
Effect-Debit (C redit)
Liabilities Net Position Revenue Expense
$ (41,284) $ $ 41 ,284
41 ,284 41 ,284
$
Information Provided
26 . We have provided you with:
a. Access to all information of which we are aware that is relevant to the preparation and fair
presentation of the basic financial statements such as records, documentation and other matters .
b. Additional information that you have reque sted from us for the purpose of the audit.
c . Unrestricted access to persons within the City from whom you determined it necessary to obtain
audit evidence .
d . Minutes of the meetings of the governing board and committees , or summaries of actions of
recent meetings for which minutes have not yet been prepared.
27. All transactions have been recorded in the accounting records and are reflected in the basic financial
statements.
28. We have disclosed to you the results of our assessment of risk that the basic financial statements
may be materially misstated as a result of fraud .
29. It is our responsibility to establish and maintain internal control over financial reporting . One of the
components of an entity's system of internal control is risk assessment. We hereby represent that our
risk assessment process includes identification and assessment of risks of material misstatement due
to fraud. We have shared with you our fraud risk assessment, including a description of the risks, our
assessment of the magnitude and likelihood of misstatements arising from tho se risks , and the
controls that we have designed and implemented in response to those risks.
30. We have no knowledge of allegations of fraud or suspected fraud affecting the City's basic financial
statements involving :
a. Management.
b. Employees who have significant roles in internal control.
c. Others where the fraud could have a material effect on the basic financial statements.
31 . We have no knowledge of any allegations of fraud or suspected fraud affecting the City's basic
financial statements received in communications from employees, former employees , analysts ,
regulators, or others.
32. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations.
33. We have disclosed to you all known actual or possible litigation and claims whose effects should be
considered when preparing the financial statements.
34. We have disclosed to you the identity of all of the City's related parties and all the re lated-party
relationships and transactions of which we are aware.
35. Except as disclosed in your reports , we are aware of no significant deficiencies , including material
weaknesses , in the design or operation of internal controls that could adversely affect the City's ability
to record , process , summarize and report financial data.
36. There have been no communications from regulatory agencies concerning noncompliance with , or
deficiencies in, financial reporting practices .
37. We agree with the findings of the specialists in evaluating the estimated liability for self-insured risks
and have adequately considered the qualifications of the specialists in determining the amounts and
disclosures used in the financial statements and underlying accounting records. We did not give
instructions , or cause any instructions to be given , to the specialists with respect to the values or
amounts derived in an attempt to bias their work , and we are not otherwise aware of any matters that
have had an impact on the independence or objectiv ity of the special ists .
38. We believe that the actuarial assumptions and methods used by the actuary for funding purposes and
for determining accumulated Plan benefits are appropriate in the circumstances . We did not give
instructions, or cause any instructions to be given , to the specialists with respect to the values or
amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that
have had an impact on the independence or objectivity of the Plan's actuary .
39 . During the course of your audit, you may have accumulated records containing data that should be
reflected in our books and records . All such data have been so reflected. Accordingly, copies of such
records in your possession are no longer needed by us.
Supplementary Information
40. With respect to supplementary information presented in relation to the basic financial statements as a
whole :
a. We acknowledge our responsibility for the presentation of such information.
b. We believe such information, including its form and content , is fairly presented in accordance with
U.S. GAAP.
c . The methods of measurement or presentation have not changed from those used in the prior
period.
d . When supplementary information is not presented with the audited basic financial statements , we
will make the audited basic financial statements readily available to the intended users of the
supplementary information no later than the date of issuance of the supplementary information
and the auditor's report thereon.
41. With respect to Required Supplementary Information presented as required by Governmental
Accounting Standards to supplement the basis financial statements:
a . We acknowledge our responsibility for the presentation of such required supplementary
information.
b. We believe such required supplementary information is measured and presented in accordance
with guidelines prescribed by U.S. GAAP.
c. The methods of measurement or presentation have not changed from those used in the prior
period .
Compliance Considerations
In connection with your audit conducted in accordance with Government Auditing Standards , we confirm
that management:
42. Is responsible for the preparation and fair presentation of the financial statements in accordance with
the applicable financ ial reporting framework.
43. Is responsible for compliance with the laws, regulations and provisions of contracts and grant
agreements applicable to the auditee.
44 . Is not aware of any in stances of identified and suspected fraud and noncompliance with provisions of
laws, regulations , contracts, and grant agreements that have a material effect on the financial
statements .
45. Is responsible for the design , implementation and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement ,
whether due to fraud or error.
46. Acknowledges its responsibility for the design, implementation and maintenance of controls to
prevent and detect fraud.
47. Has a process to track the status of audit findings and recommendations .
48. Is not aware of any investigations or legal proceedings that have been initiated with respect to the
period under audit.
49 . Has provided views on the auditor 's reported findings, conclusions and recommendations, as well as
management 's planned corrective actions, for the report.
50. Acknowledges its responsibilities as it relates to non-audit services performed by the auditor,
including that it assumes all management responsibilities ; that it oversees the services by designating
an in div idual , preferably within senior management , who possesses suitable skill , knowledge or
experience ; that it evaluates the adequacy and results of the services performed ; and that it accepts
responsibility for the results of the services .
The City of Miami Beach , Florida
Ali~~
City Manager
~4ZL: ohn odruff
Cinan::Officer
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Bea ch, Florida 33139 , www.miamibeachfl.gov
FINANCE DEPARTMENT
June 17, 2022
RSM US LLP
80 1 Brickell Avenue , Suite 1050
Miami , FL 33131
Compliance Considerations
In connection with your aud it of federal awards conducted in accordance with Subpart F of T itle 2 U.S.
Code of Federal Regulations (CFR) Part 200 , Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance) and the audit of state projects conducted in
accordance with Chapter 10.550 , Rules of the Auditor General of the State of Florida (Chapter 10 .550),
for the year ended September 30 , 2021 for the City of Miami Beach , Florida , we confirm :
1. Management is responsible for complying , and has complied , with the requirements of Uniform
Gu idance and Chapter 10.550, Rules of the Audi tor General , State of Florida .
2 . Management is responsible for understanding and complying w ith the requirements of laws ,
regulations , and the provisions of contracts and grant agreements related to each of its federal
programs and state projects .
3 . Management is responsible for the design , implementation, and maintenance, and has designed ,
implemented and ma intained , effective internal control over compliance for federal programs and
state projects that prov ides reasonable assurance that the auditee is managing federal awards and
state financial assistance in compliance with federal and state statutes , regulat ions, and the terms
and conditions of the federa l awards and state financ ial assistance that could have a material effect
on its federal programs and state proj ects .
4 . Management is responsible for the preparation of the schedule of expenditures of federal awards and
schedule of expenditures of state financial assistance , acknowledges and understands its
responsib il ity for the presentation of the schedule of expenditures of federal awards and schedule of
expenditures of state financial assistance in accordance with the Uniform Guidance and Chapter
10.550; believes the schedule of expenditures offederal awards and schedule of expenditures of
state financial ass istance , including its form and content , is fairly presented in accordance with the
Uniform Guidance and Chapter 10 .550 , Rules of the Auditor General, State of Florida ; asserts that
methods of measurement or presentat ion have not changed from those used in the prior period , or if
the methods of measurement or presentation have changed, the reasons for such changes have
been commun icated ; and is responsib le for any significant assumptions or in terpretations underlying
the measurement or presentation of the schedule of expenditures of federal awards and schedule of
expenditures of state financial assistance .
5. Management will make the audited financial statements readily available to the intended users of th e
schedules no later than the issuance date by the entity of the schedule of expenditures of federal
awards and schedule of expenditures of state financial assistance and the auditor 's report thereon .
6 . Management has identified and disclosed all of its government programs and related activities subject
to the Uniform Guidance and Chapter 10.550, Rules of the Auditor General , State of Florida
compl iance aud it.
7. Management has identified and disclosed to the auditor the requirements of federal and state
statutes, regulations , and the terms and conditions of federal and state awards that are considered to
have a direct and material effect on each major federal program or state project.
8. Management has made available all federal awards and state financial assistance (including
amendments, if any) and any other correspondence relevant to federal programs and state projects
and related activities that have taken place with federal and state agencies or pass-through entities.
9. Management has identified and disclosed to the auditor all amounts questioned and all known
noncompliance with the direct and material compliance requirements of federal awards and state
financial assistance or stated that there was no such noncompliance.
10. Management believes that the auditee has complied with the direct and material compliance
requirements.
11. Management has made available all documentation related to compliance with the direct and material
compliance requirements, including information related to federal and state program financial reports
and claims for advances and reimbursements.
12 . Management is aware of no communications from federal and state awarding agencies and pass-
through entities concerning possible noncompliance with the direct and material compliance
requirements , including communications received from the end of the period covered by the
compliance audit to the date of the auditor's report .
13. There are no findings and related corrective actions taken for previous audits , attestation
engagements , and internal or external monitoring that directly relate to the objectives of the
compliance audit, including findings received and corrective actions taken from the end of the period
covered by the compliance audit to the date of the auditor's report .
14 . Management is responsible for taking corrective action on audit findings of the compliance audit and
has developed a corrective action plan that meets the requirements of the Uniform Guidance and
Chapter 10.550, Rules of the Auditor General, State of Florida.
15. Management has provided the auditor with all information on the status of the follow-up on prior audit
findings by federal and state awarding agencies and pass-through entities, including all management
decisions .
16. There are no subsequent events that provide additional evidence with respect to conditions that
existed at the end of the reporting period that affect noncompliance during the report ing period.
17. Management has disclosed all known noncompliance with direct and material compliance
requirements occurring subsequent to the period covered by the auditor's report or stated that there
were no such known instances.
18. Management has disclosed whether any changes in internal control over compliance or other factors
that might significantly affect the entity's system of internal control, including any corrective action
taken by management with regard to significant deficiencies and material weaknesses in internal
control over compliance , have occurred subsequent to the period covered by the auditor's report.
19 . Federal and state program financial reports and claims for advances and reimbursements are
supported by the books and records from which the basic financial statements have been prepared .
20 . The copies of federal program and state project financial reports provided to the auditor are true
copies of the reports submitted , or electronically transmitted, to the federal agency or pass-through
entity , as applicable.
21 . Management has monitored subrecipients, as necessary , to determine that they have expended
pass-through assistance in accordance with applicable laws and regulations and the terms and
conditions of the subaward and have met the other pass-through entity requirements of the Uniform
Guidance.
22 . Management has issued management decisions for audit findings that relate to federal awards and
state financial assistance it makes to subrecipients and such management decisions are issued
within six months of acceptance of the audit report by the FAC . Additionally , management has
followed up to ensure that the subrecipient takes timely and appropriate action on all deficiencies
detected through audits , on-site reviews and other means that pertain to the federal award and state
financial assistance provided to the subrecipient from the pass -through entity .
23. Management has considered the results of subrecipient monitoring and audits , and has made any
necessary adjustments to the auditee 's own books and records.
24 . Management has charged costs to federal awards and state financial assistance in accordance w ith
applicable cost principles.
25. Management is responsible for , and has accurately prepared , the summary schedule of prior audit
findings to include all findings required to be included by Uniform Guidance and Chapter 10.550,
Rules of the Auditor General , State of Florida.
26. The reporting package does not contain protected personally identifiable information.
27 . Management has accurately completed the appropriate sections of the data collect ion form .
28 . Management has disclosed all contracts or other agreements with service organizations .
City of Miami Beach, Florida
Manager
Jo Lli_Js----
irector
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach , Fl orida 33139, www.miamibeachfl.gov
FINANCE DEPARTMENT
June 17 , 2022
RSM US LLP
801 Brickell Avenue, Suite 1050
Miami , FL 33131
This representation letter is provided in connection with your audits of the Schedule of Expenditures for
each of the Children's Trust Contracts (the "Schedule") of the City of Miami Beach (the "City") for the year
ended September 30 , 2021 (as defined in Note 2 of the Schedule) and the related notes to the Schedule
for the purpose of expressing an opinion on whether the Schedule presents fairly , in all material respects,
the contract budgets and expenditures for each of the Children 's Trust Contracts of the City in accordance
with accounting principles generally accepted in the United States (U .S. GAAP).
We confirm to the best of our knowledge and belief, as of the date of this letter:
Schedule of Expenditures
1. We have fulfilled our responsibilities , as set out in the terms of the audit arrangement letter dated
October 1, 2021 for the preparation and fair presentation of the Schedule referred to above in
accordance with U.S . GAAP and the presentation requirements of the Children 's Trust Fund
contractual agreements .
2. We acknowledge our responsibility for the design , implementation, and maintenance of internal
control relevant to the preparation and fair presentation of the Schedule that is free from materia l
misstatement, whether due to fraud or error .
3. We acknowledge our responsibility for the design , implementation and maintenance of internal
controls to prevent and detect fraud.
4 . All events subsequent to the date of the Schedule and for which U .S GAAP requires adjustment or
disclosure have been adjusted or disclosed .
5. We have no knowledge of any uncorrected misstatements in the Schedule .
Compliance Considerations
In connection w ith your audits conducted in accordance with Government Auditing Standards and the
Children's Trust Fund contractual agreements, we confirm that management:
6. Is responsible for :
a. Compliance with the laws, regulations , and provisions of contracts and grant agreements
applicable to the City .
b . Establishing and maintaining effective internal control over financial reporting .
7. We have identified and disclosed to you :
a . All laws and regulations that have a direct and material effect on the determination of the
Schedule's amounts.
b . That there are no violations (and possible violations) of laws, regulations , and provisions of
contracts and grant agreements whose effects should be considered for disclosure in the
schedule of findings and questioned costs.
c. That there are no instances that have occurred or are likely to have occurred, of fraud and
noncompliance with provisions of laws and regulations that have a material effect on the
Schedule or other financial data significant to the audit objectives , and any other instances
that warrant the attention of those charged with governance .
d . That there are no instances that have occurred or are likely to have occurred , of
noncompliance with provisions of contracts and grant agreements that have a material effect
on the determination of amounts or other financial data significant to the audit objectives.
8. We have a process to track the status of audit findings and recommendations .
9. We are responsible for complying , and we have complied , with the requirements of the Children 's
Trust Fund contractual agreements.
10 . We are responsible for understanding and complying with the requirements of laws , regulations , and
the provisions of contracts and grant agreements.
11. We are responsible for establishing and maintaining, and we have established and maintained,
effective interna l control over compl iance for the Children 's Trust Fund that provides reasonable
assurance that we are managing awards in compliance with laws, regulations, and the provisions of
contracts or grant agreements that could have a material effect on the Schedule .
12 . Management is responsible for and has accurately prepared the Schedule in accordance with the
Children 's Trust contractual agreements and have included expenditures made during the period
being audited for all awards provided by agencies in the form of grants, cost-reimbursement
contracts, loans, loan guarantees, property (including donated surplus property), cooperative
agreements , interest subsidies , insurance , food commodities , direct appropriations, and other
assistance.
13. We have identified and disclosed to you the requirements of laws , regulations , and the provisions of
contracts and grant agreements that are considered to have a direct and material effect on the
Schedule.
14. We have complied with the direct and material compliance requirements of the Children's Trust Fund
awards. If appl icable , we have identified and disclosed to you all amounts questioned and all known
noncompliance with the direct and material compliance requirements.
15 . We have made available all documentation related to our compliance with the direct and material
compliance requirements , including information related to the Children's Trust Fund financ ial reports
and claims for advances and reimbursements.
16. We have provided you our interpretations of any compliance requirements that are subject to varying
interpretations .
17. We have confirmed w ith the grantor agency that there are no monitoring or site visits required.
18. We have disclosed to you that there have been no communications from grantors and pass-through
entities concerning possible noncompliance with the direct and material compliance requirements,
including communications received from the end of the period covered by the compliance audit to the
date of your report.
19. We have disclosed to you there have not been any findings received from previous audits, attestation
engagements , and internal or external monitoring that directly relate to the objectives of the
compliance audits , including from the end of the period covered by the compliance audits to the date
of your report .
20. We have disclosed that there have not been any subsequent events that provide additional evidence
with respect to conditions that existed at the end of the reporting period that affect noncompliance
during the reporting period.
21. We are not aware of any known noncompliance with direct and material compliance requirements
occurring subsequent to the period covered by your report.
22. We have disclosed whether any changes in internal control over compliance or other factors that
might significantly affect internal control including that which may have occurred subsequent to the
date as of which compliance is audited.
23 . The Children 's Trust Fund financial reports and cla ims for advances and reimbursements are
supported by the books and records from which the above-mentioned Schedule has been prepared .
24 . The copies of Children's Trust Fund financial reports provided to you are true copies of the reports
submitted, or electronically transmitted, to the Children's Trust or pass-through entity, as applicable.
25. Management has monitored subrecipients to determine that they have expended pass-through
assistance in accordance with applicable laws and regulations and have met the requirements of the
Children 's Trust Fund contract agreements .
26 . Management has considered the results of subrecipient audits and has made any necessary
adjustments to the City 's own books and records.
27 . We have charged costs to the Children 's Trust Fund contract agreements in accordance with
applicable cost principles .
28. We have disclosed all contracts or other agreements with service organizations .
29 . We have disclosed to you there have not been communications from service organizations relating to
noncompliance at those organizations .
30. No events or transactions have occurred subsequent to the Schedule date and through the date of
this letter that would require disclosure in the Schedule.
31. During the course of your audits, you may have accumulated records containing data which should
be reflected in our books and records. All such data have been so reflected. Accordingly , copies of
such records in your possession are no longer needed by us.
City of Miam i Beach , Florida
Vy
As mance irector
MIAMI BEACH
City of Miami Beach, 1700 Convention Cente r Drive, Mia mi Beach, Flo ri da 3313 9, www.miamibeachfl.gov
FI NA NC E DEPA RTM ENT
June 17, 2022
RSM US, LLP
801 Brickell Avenue , Suite 1050
Miami , FL 33131
In connection with your examination of City of Miami Beach, Florida's (the City) compliance with Section
218 .415 Florida Statutes , Local Government Investment Policies (the Specified Requirements) during the
period from October 1, 2020 to September 30 , 2021 , in accordance with attestation standards established
by the American Institute of Certified Public Accountants, we confirm, to the best of our knowledge and
bel ief, the following representations made to you during the course of your engagement:
1. We assert that , during the period from October 1, 2020 to September 30, 2021 , the City was in
compliance with the Specified Requirements .
2. All relevant matters are reflected in the measurement or evaluation of the compliance with the
Spec ified Requirements.
3. There are no known matters contradicting the compliance with the Specified Requirements or our
assertion nor any communication from regulatory agencies affecting the compliance with the
Specified Requirements or our assertion .
4 . We are responsible for the C ity's compliance with the Specified Requirements , for our assert ion and
for establishing and maintain ing effective internal control over the C ity's compliance w ith the Specified
Requ irements.
5. We understand that we are responsible for determining that such criteria are suitable, will be available
to the intended users, and are appropriate for the purpose of your engagement.
6. We have performed an evaluation of the City's compliance with the Specified Requirements . Based
on our evaluation , the City has complied with the Specified Requirements during the period from
October 1, 2020 to September 30 , 2021 based on the abovementioned criter ia .
7. No events or transactions have occurred subsequent to September 30, 202 1, or through the date of
this letter, that would have a material effect on the C ity 's compliance with the Specified
Requirements .
8. We have made available to you all documentation related to the City's compliance w ith the Specified
Requirements as agreed upon in the terms of the engagement.
9. We have responded fully to all inquiries made to us by you during your engagement.
10 . We believe the effects of uncorrected misstatements are immateria l, individually and in the
aggregate .
11. We believe that significant assumptions used in making any mater ial estimates are reasonable.
12. There has been no deficiencies in internal control relevant to your engagement of which we are
aware .
13 . There has been no knowledge of fraud or suspected fraud affecting the City involving:
a. Management.
b. Employees who have significant roles in internal control.
c. Others where fraud could have a material effect on the City 's compliance with the Specified
Requirements.
14. We acknowledge our responsibility for the design and implementation of programs and controls to
provide reasonable assurance that fraud is prevented and detected.
15 . We have no knowledge of any allegations of fraud or suspected fraud affecting the City received in
communications from employees, former employees, analysts, regulators, short sellers or others.
16. There has been no known noncompliance w ith the Specified Requirements during the period from
October 1, 2020 to September 30, 2021 , or through the date of this letter .
17. There are no known communications from regulatory agencies, internal auditors or other practitioners
concerning the City's possible noncompliance with the Specified Requirements received by us during
the period from October 1, 2020 to September 30, 2021, or through the date of this letter.
18. During the course of your engagement, you may have accumulated records containing data that
should be reflected in our books and records . All such data have been so reflected. Accordingly,
copies of such records in your possession are no longer needed by us.
The City of Miami Beach , Florida
Chief Fi cial Officer
June 13, 2022
RSM US LLP
801 Brickell Avenue Suite 1050
Miami, FL 33131
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MIAMI BEACH
CONVENTION C ENTER
This representation letter is provided in connection with your audit of the special-purpose financial
statements of the Miami Beach Convention Center, owned by the City of Miami Beach, Florida as
managed by Oakview Group (OVG) (formally Global Spectrum, L.P.) as of and for the year ended
September 30, 2021 for the purpose of expressing an opinion on whether the special-purpose financial
statements are presented fairly, in all material respects, in accordance with the financial reporting
provisions of the Management Services Agreement with OVG dated October 7, 2013, amended as of
December 8, 2015, October 15, 2018 and September 11, 2019.
We confirm, to the best of our knowledge and belief, that as of the date of this letter:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter
executed with the City of Miami Beach, Florida (the City) dated October 1, 2021, for the
preparation and fair presentation of the financial statements referred to above in accordance
with the financial reporting provisions of the Management Services Agreement with OVG
dated October 7, 2013, amended as of December 8, 2015 , October 15, 2018 and September
11, 2019 .
2. We acknowledge our responsibility for the design, implementation and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement, whether due to fraud or error.
3. We acknowledge our responsibility for the design , implementation and maintenance of
internal control to prevent and detect fraud.
4. · Significant assumptions used by us in making accounting estimates, including those
measured at fair value, are reasonable and reflect our judgment based on our knowledge and
experience about past and current events, and our assumptions about conditions we expect
to exist and courses of action we expect to take .
5. Related-party transactions, including those with the City, are such that exclusion would
cause the reporting entity 's financial statements to be misleading or incomplete , and interfund
transactions, including interfund accounts and advances receivable and payable, sale and
purchase transactions, interfund transfers, long-term loans , leasing arrangements and
guarantees, have been recorded in accordance with the economic substance of the
transaction and appropriately accounted for and disclosed in accordance with the
requirements of the financial reporting provisions of the Management Services Agreement
with GS dated October 7 , 2013 , amended as of December 8 , 2015, October 15, 2018 and
September 11 , 2019.
6 . All events subsequent to the date of the financial statements, and for which the financial
reporting provisions of the Management Services Agreement with GS dated October 7, 2013 ,
amended as of December 8 , 2015 , October 15, 2018 and September 11, 2019 requires
adjustment or disclosure, have been adjusted or disclosed.
1111lllllllii1t111111 . ,,,,1111 UUlh1,,._ lluuww1 u1 ••
MIAMI BEACH
CONVENTiON CENTER
7. The effects of all known actual or possible litigation and claims have been accounted for and
disclosed in accordance with the financial reporting provisions of the Management Services
Agreement with GS dated October 7, 2013, amended as of December 8, 2015, October 15,
2018 and September 11, 2019.
8. We have no direct or indirect legal or moral obligation for any debt of any organization, public
or private, that is not disclosed in the financial statements.
9. We have complied with all aspects of contractual agreements that would have a material
effect on the financial statements in the event of noncompliance. In connection therewith, we
specifically represent that we are responsible for determining that we are not subject to the
requirements of the Single Audit Act because we have not received, expended or otherwise
been the beneficiary of the required amount of federal awards during the period of this audit.
10. We have no knowledge of any uncorrected misstatements in the financial statements .
Information Provided
11. We have provided you with:
a . Access to all information of which we are aware that is relevant to the preparation and fair
presentation of the financial statements such as records, documentation and other
matters.
b. Additional information that you have requested from us for the purpose of the audit.
c. Unrestricted access to persons within the entity from whom you determined it necessary
to obtain audit evidence.
d. Minutes of the meetings of the governing board and committees, or summaries of actions
of recent meetings for which minutes have not yet been prepared .
12 . All transactions have been recorded in the accounting records and are reflected in the
financial statements.
13. We have disclosed to you the results of our assessment of risk that the financial statements
may be materially misstated as a result of fraud.
14. It is our responsibility to establish and maintain internal control over financial reporting. One
of the components of internal control is risk assessment. We hereby represent that our risk
assessment process includes identification and assessment of risks of material misstatement
due to fraud. We have shared with you our fraud risk assessment, including a description of
the risks, our assessment of the magnitude and l ikelihood of misstatements arising from
those risks, and the controls that we have designed and implemented in response to those
risks.
15. We have no knowledge of allegations of fraud or suspected fraud affecting the entity's
financial statements involving:
a. Management.
b. Employees who have significant roles in internal control.
CONVENTION CEf\lTER
c. Others where the fraud could have a material effect on the [primary government]
[basic] financial statements.
16. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's
financial statements received in communications from employees , former employees ,
analysts, regulators, short sellers or others .
17. We have no knowledge of noncompliance or suspected noncompliance with laws and
regulations.
18. We are not aware of any pending or threatened litigation and claims whose effects should be
considered when preparing the financial statements, and we have not consulted legal
counsel concerning litigation or claims.
19. We have disclosed to you the identity of all of the entity's related parties and all the related-
party relationships and transactions of which we are aware .
20. We are aware of no significant deficiencies, including material weaknesses , in the design or
operation of internal controls that could adversely affect the Convention Center's ability to
record, process, summarize and report financial data.
21 . There have been no communications from regulatory agencies concerning noncompliance
with, or deficiencies in, financial reporting practices.
22. During the course of your audit, you may have accumulated records containing data that
should be reflected in our books and records . All such data have been so reflected.
Accordingly, copies of such records in your possession are no longer needed by us .
M~Convention Contee," managed by Global Spectrum, LP.
Freddie Peterson
General Manager
Director of Finance
MIAMll VISITORAND
BEAC CONVENTION
AUTHORITY
June 13, 2022
RSM US LLP
801 Brickell Ave Suite 1050
Miami, FL 33131
This representation letter is provided in connection with your audit of the governmental activities and the
major fund of Miami Beach Visitor and Convention Authority (the Authority), a component unit of the City
of Miami Beach, Florida, and the related notes to the financial statements as of and for the year ended
September 30, 2021 , for the purpose of expressing an opinion on whether the financial statements are
presented fairly, in all material respects , in accordance with accounting principles generally accepted in
the United States of America (U.S . GAAP).
We confirm, to the best of our knowledge and belief, that as of the date of this letter:
Financial Statements
1. We have fulfilled our responsibilities , as set out in the terms of the audit arrangement letter dated
October 1, 2021 and our audit services agreement dated August 8, 2019, for the preparation and fair
presentation of the financial statements referred to above in accordance with U.S. GAAP .
2. We acknowledge our responsibility for the design, implementation and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
3. We acknowledge our responsibility for the design, implementation and maintenance of internal control
to prevent and detect fraud .
4 . Significant assumptions used by us in making accounting estimates, including those measured at fair
value , are reasonable and reflect our judgment based on our knowledge and experience about past
and current events , and our assumptions about conditions we expect to exist and courses of action
we expect to take.
5 . Related-party transactions have been recorded in accordance with the economic substance of the
transaction and appropriately accounted for and disclosed in accordance with the requirements of
U .S. GAAP . Types of related party transactions engaged in by the City and the Authority include :
a . Those with the primary government having accountability for the Authority .
b. Those with component units for which the City & Authority are accountable .
c . Those with other organizations for which the nature and significance of their relationship with the
Authority are such that exclusion would cause the reporting entity 's financial statements to be
misleading or incomplete .
d . lnterfund transactions , including interfund accounts and advances receivab le and payable, sale
and purchase transactions, interfund transfers , long-term loans , leasing arrangements and
guarantees .
6 . The financial statements properly classify all funds and activities in accordance with GASB Statement
No. 54 , Fund Balance Reporting and Governmental Fund Type Definitions , as amended .
1701 Meridian Avenue • Suite 403 u Miami Beach, Florida 33139 • www.miamibeachvca.com Tel: 305-673-7050 Fax: 305-673-7282
RSM US LLP
June 13, 2022
Page 2
7. All events subsequent to the date of the financial statements, and for which U.S. GAAP requires
adjustment or disclosure, have been adjusted or disclosed .
8. The effects of all known actual or possible litigation and claims have been accounted for and
disclosed in accordance with U.S. GAAP .
9. We have no direct or indirect legal or moral obligation for any debt of any organization , public or
private, that is not disclosed in the financial statements.
10. We have complied with all aspects of laws, regulations and provisions of contracts and agreements
that would have a material effect on the financial statements in the event of noncompliance
11 . As of and for the year ended September 30 , 2021 , we believe that the effects of the uncorrected
misstatements aggregated by you and summarized below are immaterial , both individually and in the
aggregate , to the financial statements. For purposes of this representation , we consider items to be
material, regardless of their size , if they involve the misstatement or omission of accounting
information that, in light of surrounding circumstances, makes it probable that the judgment of a
reasonable person relying on the information would be changed or influenced by the omission or
misstatement.
City of Miami Beach, Florida Visitor & Convention Authority
Summary of Unrecorded Audit Adjustments
Year Ended September 30, 2021
Effect-Increase (Decrease)
Description Assets Liabilities Equity Revenue Expenditure
To adjust payroll accrual as of
September 30 , 2021.
Total effect
Information Provided
12. We have prov ided you with :
$
$
$ 16,025 $ $
$ 16,025 $ $
a. Access to all information of which we are aware that is relevant to the preparation and fair
presentation of the financial statements such as records , documentation and other matters .
b. Additional information that you have requested from us for the purpose of the audit.
$ 16 ,025
$ 16 ,025
c . Unrestricted access to persons within the entity from whom you determined it necessary to obtain
audit evidence .
d . Minutes of the meetings of the governing board and committees , or summaries of actions of
recent meetings for which minutes have not yet been prepared .
13. All transactions have been recorded in the accounting records and are reflected in the financial
statements .
RSM US LLP
June 13, 2022
Page 3
14 . We have disclosed to you the results of our assessment of risk that the financial statements may be
materially misstated as a result of fraud .
15. It is our responsibility to establish and maintain internal control over financial reporting. One of the
components of internal control is risk assessment. We hereby represent that our risk assessment
process includes identification and assessment of risks of material misstatement due to fraud. We
have shared with you our fraud risk assessment, including a description of the risks, our assessment
of the magnitude and likelihood of misstatements arising from those risks , and the controls that we
have designed and implemented in response to those risks .
16. We have no knowledge of allegations of fraud or suspected fraud affecting the Authority 's financial
statements involving:
a. Management.
b . Employees who have significant roles in internal control.
c . Others where the fraud could have a material effect on the (primary government] [basic] financial
statements.
17 . We have no knowledge of any allegations of fraud or suspected fraud affecting the Authority's
financial statements received in communications from employees , former employees, analysts,
regulators, short sellers or others.
18. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations.
19 . We are not aware of any pending or threatened litigation and claims whose effects should be
considered when preparing the financial statements . We have not consulted legal counsel concerning
litigation or claims .
20. We have disclosed to you the identity of all of the Authority 's related parties and all the related-party
relationships and transactions of which we are aware.
21 . We are aware of no significant deficiencies , including material weaknesses, in the design or operation
of internal controls that could adversely affect the Authority's ability to record, process , summarize
and report financial data.
22. There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in , financial reporting practices.
23 . During the course of your audit, you may have accumulated records containing data that should be
reflected in our books and records . All such data have been so reflected . Accordingly , copies of such
records in your possession are no longer needed by us.
24 . With respect to the Schedule of the Authority's proportionate share of the City's net pension liability,
Schedule of Authority's pension contributions, Schedule of Authority's proportionate share of the
City's net OPEB Liability, Schedule of the Authority's OPEB contributions, and Schedule of revenues
and expenditures budget and actual -general fund presented as required by the Government
Accounting Standards Board (GASB) to supplement the basic financial statements :
a . We acknowledge our responsibility for the presentation of such required supplementary
information.
RSM US LLP
June 13, 2022
Page4
b . We believe such required supplementary information is measured and presented in accordance
with guidelines prescribed by U.S. GAAP .
c . The methods of measurement or presentation have not changed from those used in the prior
period .
d . The following are underlying significant assumptions or interpretations regarding t he
measurement or presentation of such i nformation :
The actuarial assumptions included in the financial statement disclosures .
Compliance Considerations
In connection with your audit conducted in accordance with Government Auditing Standards , we confirm
that management:
25 . Is responsible for the preparation and fair presentation of the financial statements in accordance with
the applicable financial reporting framework .
26. Is responsible for compliance with the laws , regulations and provisions of contracts and grant
agreements applicable to the auditee .
27. Has identified and disclosed to the auditor that there are no instances that have occurred , or are likely
to have occurred , of fraud and noncompliance with provisions of laws and regulations that have a
material effect on the financial statements or other financial data significant to the audit objectives ,
and any other instances that warrant the attention of those charged with governance .
28 . Has identified and disclosed to the auditor that there are no instances that have occurred , or are likely
to have occurred, of noncompliance with provisions of contracts and grant agreements that have a
material effect on the determination of financial statement amounts .
29 . Has identified and disclosed to the auditor that there are no instances that have occurred , or are likely
to have occurred , of abuse that could be quantitatively or qualitatively material to the financial
statements .
30. Is responsible for the des ign , implementation and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from mater ial misstatement,
whether due to fraud or error.
31 . Acknowledges its responsibility for the design , implementation and maintenance of internal controls to
prevent and detect fraud .
32. Has taken timely and appropriate steps to remedy fraud; noncompliance with provisions of laws ,
regulations , contracts and grant agreements; or abuse that the auditor reports .
33 . Has a process to track the status of audit findings and recommendations .
34 . Has identified for the auditor previous audits, attestation engagements and other studies related to
the audit objectives and whether related recommendations have been implemented .
35. Has provided views on the auditor's reported findings , conclusions and recommendations , as well as
management's planned corrective actions, for the report .
RSM US LLP
June 13 , 2022
Pages
36. Acknowledges its responsibilities as it relates to non-audit services performed by the auditor,
including a statement that it assumes all management responsibilities ; that it oversees the services by
designating an individual , preferably within senior management, who possesses suitable skill ,
knowledge or experience; that it evaluates the adequacy and results of the services performed; and
that it accepts responsibility for the results of the services.
City of Miami Beach : Florida Visitor & Convention Authority :
Gfi sette Roque Marcos
Executive Director, Miami Beach Visitor and Convention Authority
Steve Adkins
Chair, Miami Beach Visitor and Convention Authority Board of Directors
EXHIBIT C
Recent Accounting Pronouncements
RECENT ACCOUNTING PRONOUNCEMENTS
The following accounting pronouncements have been issued as of report date but are not yet effective
and may affect the future financial reporting by the City.
Pronouncement
GASB 87, Leases
GASB 91, Conduit Debt
Obligations
GASB 92, Omnibus 2020
GASB 93, Replacement of
Interbank Offered Rates
GASB 94, Public-Private and
Public-Public Partnerships
and Availability Payment
Arrangements
GASB 96, Subscription-
Based Information
Technology Arrangements
Summary
This statement improves the accounting and financial reporting for leases
by governments . The provisions of this statement will be effective for the
City beginning with its year ending September 30 , 2022 .
This statement provides a single method of reporting conduit debt
obligations by issuers and eliminates diversity in practice associated with:
(1) commitments extended by issuers , (2) arrangements associated with
conduit debt obligations and (3) related note disclosures . The provisions
of this statement will be effective for the City beginning with its yea r
ending September 30 , 2023.
This statement enhances comparability in accounting and financial
reporting and to improve the consistency of authoritative literature by
addressing practice issues that have been identified during
implementation and application of certain GASB Statements. The
requirements of this Statement are effective for the City beginning with its
year ending September 30 , 2022.
This statement addresses accounting and financial reporting implications
that result from the replacement of a LIBOR. The requirements of this
Statement are effective for the City beginning with its year ending
September 30 , 2022 .
Th is statement improves financial reporting by addressing issues related
to public-private and public-public partnership arrangements (PPPs). This
Statement also provides guidance for accounting and financial reporting
for availability payment arrangements (APAs). The requirements of this
Statement are effective for the City beginning with its year ending
September 30 , 2023 .
This statement provides guidance on the accounting and financial
reporting for subscription-based information technology arrangements
(SBITAs) for government end users (governments). The requirements of
this Statement are effective for the City beginning with its year ending
September 30 , 2023 .
I
Pronouncement
GASB Statement No. 97,
Certain Component Unit
Criteria, and Accounting and
Financial Reporting for
Internal Revenue Code
Section 457 Deferred
Compensation Plans-an
amendment of GASB
Statements No . 14 and No .
84 , and a supersession of
GASB Statement No. 32
GASB 99, Omnibus 2022
GASB 100, Accounting
Changes and Error
Corrections-an amendment
of GASB Statement No. 62
Summary
The primary objectives of this statement are to: (1) increase consistency
and comparability related to the reporting of fiduciary component units in
circumstances in which a potential component unit does not have a
governing board and the primary government performs the duties that a
governing board typically would perform ; (2) mitigate costs associated
with the reporting of certain defined contribution pension plans , defined
contribution other postemployment benefit (OPEB) plans , and employee
benefit plans other than pension plans or OPEB plans (other employee
benefit plans) as fiduciary component units in fiduciary fund financial
statements ; and (3) enhance the relevance, consistency and
comparability of the accounting and financial reporting for Internal
Revenue Code (IRC) Section 457 deferred compensation plans (Section
457 plans) that meet the definition of a pension plan and for benefits
provided through those plans. The provisions of this statement will be
effective for the City beginning with its year ending September 30 , 2022 .
The requirements of this Statement are effective as follows:
The requirements related to extension of the use of LIBOR, accounting
for SNAP distributions, disclosures of nonmonetary transactions, pledges
of future revenues by pledging governments , clarification of certain
provisions in Statement 34 , as amended , and terminology updates
related to Statement 53 and Statement 63 are effective upon issuance .
The requirements related to leases, PPPs , and SBIT As are effective for
fiscal years beginning after June 15, 2022 , and all reporting periods
thereafter.
The requirements related to financial guarantees and the classification
and reporting of derivative instruments within the scope of Statement 53
are effective for fiscal years beginning after June 15 , 2023, and all
reporting periods thereafter. The requirements of this Statement are
effective for the City beginning with its year ending September 30 , 2024.
This Statement defines accounting changes as changes in accounting
principles , changes in accounting estimates , and changes to or within the
financial reporting entity and describes the transactions or other events
that constitute those changes. As part of those descriptions , for (1)
certain changes in accounting principles and (2) certain changes in
accounting estimates that result from a change in measurement
methodology, a new principle or methodology should be justified on the
basis that it is preferable to the principle or methodology used before the
change . That preferability should be based on the qualitative
characteristics of financial reporting-understandability, reliability,
relevance, timeliness, consistency , and comparability. This Statement
also addresses corrections of errors in previously issued financial
statements . The requirements of this Statement are effective for the City
beginning with its year ending September 30 , 2024 .
Pronouncement
GASB 101, Accounting
Changes and Error
Corrections-an amendment
of GASB Statement No . 62
Summary
The objective of this Statement is to better meet the information needs of
financial statement users by updating the recognition and measurement
guidance for compensated absences. That objective is achieved by
aligning the recognition and measurement guidance under a unified
model and by amending certain previously required disclosures. The
requirements of this Statement are effective for the City beginning with its
year ending September 30 , 2025.
Miami Beach
Redevelopment Agency, a
Component Unit of the City
of Miami Beach, Florida
Report to the Honorable Mayor and Members of the
City Commission
July 6, 2022
July 6 , 2022
Honorable Mayor and Members of the City Commission
City of Miami Beach , Florida
Miami Beach , FL
Attention: Honorable Mayor and Members of the City Commission
■-RS~A
RSMUSLLP
1861 International Drive
Suite 400
McLean . VA 22102
T + 1 703 336 6400
F +1 703 336 6401
www.rsmus.com
We are pleased to present this report related to our audit of the basic financial statements of the Miami
Beach Redevelopment Agency (the Agency), a component unit of the City of Miami Beach , Florida (the
City) as of and for the year ended September 30 , 2021. This report summarizes certain matters required
by professional standards to be communicated to you in your oversight responsibility for the Agency's
financial reporting process .
This report is intended solely for the information and use of the Mayor, members of the City Commission
and management, and is not intended to be, and should not be, used by anyone other than these
specified parties . It will be our pleasure to respond to any questions you have about this report . We
appreciate the opportunity to continue to be of service to the Agency.
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX I CONSULTING
RSM US LLP is the U.S. member firm of RSM lntern.Jtionul. u glob.JI network of independent ,:iudit. tux, Jnd consulting firms. Visit rsmus.com/uboutL1s for more information rcg.irding RSM US LLP and
RSM International.
TABLE OF CONTENTS
Required Communications
Significant Accounting Estimates
Recorded Audit Adjustments
Exhibits
Exhibit A-Internal Control Matters
Exhibit B-Significant Written Communications Between Management and Our Firm
• Representation Letter
Exhibit C-Recent Accounting Pronouncements
4
6
REQUIRED COMMUNICATIONS
Auditing standards generally accepted a in the United States of America (AU-C 260, The Auditor's
Communication With Those Charged With Governance) require the auditor to promote effective two-way
communication between the auditor and those charged with governance . Consistent with this
requirement, the following summarizes our responsibilities regarding the basic financial statement audit
as well as observations arising from our audit that are significant and relevant to your responsibility to
oversee the financial and related compliance reporting process.
Our Responsibilities With Regard to the Financial Statement and Compliance
Audit
Our responsibilities under auditing standards generally accepted in the United States of America and
Government Auditing Standards issued by the Comptroller General of the United States have been
described to you in our arrangement letter dated October 1, 2021. Our audit of the basic financial
statements does not relieve management or those charged with governance of their responsibilities,
which are also described in that letter.
Overview of the Planned Scope and Timing of the Financial Statement Audit
We have issued a separate communication dated January 12 , 2022, regarding the planned scope and
timing of our audit and identified significant risks .
Accounting Policies and Practices
Preferability of Accounting Policies and Practices
Under accounting principles generally accepted in the United States of America , in certain circumstances,
management may select among alternative accounting practices . In our view, in such circumstances,
management has selected the preferable accounting practice .
Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness of the accounting policies used by the
Agency. The Agency did not adopt any significant new accounting policies , nor have there been any
changes in existing significant accounting policies during the current period .
Significant Accounting Policies
We did not identify any significant accounting policies in controversial or emerging areas for which there
is a lack of authoritative guidance or consensus.
Significant Unusual Transactions
We did not identify any significant unusual transactions.
Management's Judgments and Accounting Estimates
Summary information about the process used by management in formulating particularly sensitive
accounting estimates and about our conclusions regarding the reasonableness of those estimates is in
the attached Summary of Significant Accounting Estimates .
1
Audit Adjustments and Uncorrected Misstatements
Audit adjustments, other than those that are clearly trivial, proposed by us and recorded by the Agency
are shown in the attached list of Recorded Audit Adjustments .
We are not aware of any uncorrected misstatements other than misstatements that are clearly trivial.
Departure From the Auditor's Standard Report
Expected Emphasis-of-Matter Paragraph
As discussed in Note 1, the financial statements present only the Agency and do not purport to, and do
not, present fairly the financial position of the City as of September 30, 2021, the changes in its financial
position, or where applicable cash flows for the year then ended in accordance with the accounting
principles generally accepted in the United States of America. Our opinion is not modified with respect to
this matter.
In light of this matter, we included this emphasis-of-matter paragraph in the auditor's report.
Key Audit Matters
Key audit matters are those matters that are communicated to those charged with governance and, in our
professional judgment, were of most significance in our audit of the financial statements of the current
period. These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we will not provide a separate opinion on these matters . We
determined the following matters to be key audit matters and will describe them in the auditor's report as
follows:
Key audit matters
Financial Reporting
Material audit adjustments were proposed by us and accepted by management in order for the financial
statements to be presented in accordance with Accounting Principles Generally Accepted in the Unites
States. This included a material adjustment to the Capital Projects fund, the Parking fund and the Leasing
Fund relating to a legal settlement obligation . An adjusting entry for $14.2 million was recorded to the
Capital Projects Fund, $7 million to the Parking fund and $5.9 million to the Leasing Fund to record a
liability relating to the legal settlement.
Observations About the Audit Process
Disagreements With Management
We encountered no disagreements with management over the application of significant accounting
principles, the basis for management's judgments on any significant matters, the scope of the audit or
significant disclosures to be included in the basic financial statements.
Consultations With Other Accountants
We are not aware of any consultations management had with other accountants about accounting or
auditing matters.
Significant Issues Discussed With Management
We discussed the significant Clark settlement that transpired after year end and the need for an audit
adjustment relating to this matter.
2
Significant Difficulties Encountered in Performing the Audit
We did not encounter any significant difficulties in dealing with management during the audit.
Difficult or Contentious Matters That Required Consultation
We did not encounter any significant and difficult or contentious matters that required consultation outside
the engagement team.
Internal Control
We have separately communicated a material weakness in internal control over financial reporting
identified during our audit of the financial statements . This communication is attached as Exhibit A.
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
Significant Written Communications Between Management and Our Firm
Copies of significant written communications between our firm and the management of the Agency ,
including the representation letter provided to us by management, are attached as Exhibit B.
3
SIGNIFICANT ACCOUNTING ESTIMATES
I
Accounting estimates are an integral part of the preparation of financial statements and are based upon
management's current judgment. The process used by management encompasses their knowledge and
experience about past and current events, and certain assumptions about future events. You may wish to
monitor throughout the year the process used to determine and record these accounting estimates. The
following summarizes the significant accounting estimates reflected in the Agency 's September 30, 2021
basic financial statements .
Significant Accounting Estimates
Accounting for Pension Plans and Related Net Pension Liabilities
Accounting policy
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
Depreciation of Capital Asset
Accounting policy
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
The net pension liabilities and related pension amounts are actuarially
determined in accordance with the parameters established by the
Governmental Accounting Standards Board . The difference between total
pension liability and plan fiduciary net position at each plans '
measurement date and any associated deferred outflows/inflows as of the
period ended are recognized in the financial statements.
City management and/or the pension plans' management, with input from
its actuary , developed the actuarial assumptions based on relevant
criteria . City management reviewed and approved the financial statement
estimates derived from the pension plans' actuarial reports.
We have audited the underlying data supporting the estimate and
reviewed management's methodology, including evaluating the actuarial
reports and assumptions used which appears reasonable and
consistently applied , and have deemed the resulting estimates to be
reasonable.
Depreciation on capital assets is provided using the straight-line method.
The depreciable life of capital assets is established based on
management's estimate of the useful lives of the assets.
Depreciation of capital assets is determined using the straight-line method
of depreciation over the estimated useful lives of the asset, as assigned
by management.
We have audited the underlying data supporting the estimate and
reviewed management's methodology which appears properly and
consistently applied and have deemed the resulting estimate to be
reasonable.
Accounting for Other Post-Employment Benefits
Accounting policy Total other postemployment benefits (OPEB) liabilities, related deferred
OPEB amounts and expenses are actuarially determined in accordance
with the parameters established by the Governmental Accounting
Standards Board (GASB).
4
Significant Accounting Estimates
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
Management with input from its OPEB actuary developed the actuarial
assumptions based on relevant criteria . Management reviewed and
approved the financial statement estimates derived from the OPEB
actuarial report .
We have audited the underlying data supporting the estimate and
reviewed management's methodology, including evaluating the actuarial
reports and assumptions used which appears reasonable and
consistently applied , and have deemed the resulting estimates to be
reasonable.
5
RECORDED AUDIT ADJUSTMENTS
Management corrected the following material misstatements that were identified as a result of our audit
procedures .
Capital Projects Fund Opinion Unit
Description
Current year misstatements:
To record the Clark Construction legal
settlement
Statement of revenues , expenditures , and
changes in fund balance effect
Balance sheet effect
Parking Fund Opinion Unit
Description
Current year misstatements :
To record the Clark Construction legal
settlement
Statement of activities effect
Statement of net position effect
Leasing Fund Opinion Unit
Description
Current year misstatements :
To record the Clark Construction legal
settlement
Statement of activities effect
Statement of net position effect
Effect-Debit (Credit)
Asset Liabilities Net Position Revenue Expense
_$'--____ $.;.......,.(_14-'-,2_0_0,_,0_00_,.)_ $ $ $ 14,200 ,000
14,200,000
$ $ (14,200 ,000) $ 14,200,000
Effect-Debit (Credit)
Asset Liabilities Net Posi tio n Revenue Expense
$ $ (7,000,0 00) $ $ $ 7 ,000 ,000
7 ,000,000
$ $ (7,000,000) $ 7 ,000,000
Effect-Debit (Credit)
Asset Liabilities Net Position Revenue Expense
$ $ (5 ,900,000) $ $ $ 5,900 ,000
5,900 ,000
$ $ (5 ,900 ,000) $ 5 ,900 ,000
6
EXHIBIT A
Internal Control Matters
Miami Beach Redevelopment Agency
(A Component Unit of the City of Miami Beach, Florida)
Schedule of Findings and Responses
2021-001 -Financial Reporting -Material Weakness
Criteria: Internal control policies and procedures should provide reasonable assurance regarding the
reliability of the financial reporting process, including the accurate recording and disclosure of accounting
transactions
Condition: Material accounting adjustments were made by management to the financial statements to
comply with generally accepted accounting principles . This included a material adjustment to the Capital
Projects fund , the Parking Fund and the Leasing Fund relating to a legal settlement obligation .
Cause: Established controls requiring the reconciliation and review of account balances failed to identify
the errors noted and the recognition of outstanding obligations were not recorded in the correct period .
Effect: An audit adjusting entry for $14.2 million was recorded to the Capital Projects Fund , $7 million to
the Parking Fund and $5.9 million to the Leasing Fund to record a liability relating to the legal settlement.
Recommendation: We recommend that management review the design of established controls and
implement the changes necessary to allow for the accurate recording and disclosure of accounting
transactions. Necessary controls should include review of possible losses and/or obligations by
appropriate levels of management across critical areas in the Agency.
Views of Responsible Officials and Planned Corrective Action: Management has an established
procedure in place to review risk and liabilities cases quarterly to ensure appropriate inclusion in
estimates . Additionally , Management will establish an annual end of year review of all open and recently
closed legal/risk matters exceeding an established materiality threshold to determine if additional
obligations should be recorded at year end. Finally , the City will continue to closely review post-closing
entries , payments , and year end checklists to ensure proper inclusion/exclusion of obligations in financial
reporting.
71
EXHIBIT 8
Significant Written Communications Between
Management and Our Firm
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Dr ive , M iomi Beo ch, Florido 33139, www.miomibeachfl.gQY
July 6 , 2022
RSM US, LLP
801 Brickell Avenue , Suite 1050
Miami , FL 33131
This representation letter is provided in connection with your aud it of the basic financial statements of the
Miami Beach Redevelopment Agency (the "Agency"). a Component Unit of the City of Miami Beach . Florida,
as of and for the year ended September 30 , 2021 for the purpose of expressing an opinion on whether the
financial statements are presented fairly , in all material respects, in accordance with accounting principles
generally accepted in the United States of America (U.S. GMP).
We confirm , to the best of our knowledge and be l ief, that as of the date of th is letter:
Financial Statements
1. We have fulfilled our responsibilities , as set out in the terms of the audit arrangement letter dated
October 1, 2021, for the preparation and fair presentation of the financial statements referred to above
in accordance with U.S . GMP.
2 . We acknowledge our responsibility for the design , implementation and maintenance of internal control
relevant to the preparat ion and fai r presentation of financia l statements that are free from material
misstatement. whether due to fraud or error .
3. We acknowledge our responsibility for the des ign , implementation and maintenance of controls to
prevent and detect fraud.
4 . The methods , data, and significant assumptions used by us in making accounting estima tes and their
related disclosures are appropriate to achieve recognition , measurement, or disclosure that is
reasonable in the context of U.S. GMP, and reflect our judgment based on our knowledge and
experience about past and current events , and our assumptions about conditions we expect to exist
and courses of action we expect to take .
5. The methods , assumpt ions and data used to measure the Agency 's net OPEB liability and related
OPEB amounts , are as follows , and result in an estimate that is appropriate for financial statement
measurement and disclosure purposes and have been consistently selected and applied in making the
estimate . The significant methods and assumptions used in determining the net OPEB liability include
Entry Age Normal Cost Method, amortized over a closed period of five year, using fa ir market value for
asset valuation , d iscount rate of 2.56% per annum , salary increases of 3.5% per annum and inflat ion
of 3% per annum . Significant judgments made in making the estimate have taken into account all
relevant information of which we are aware . Appropriate specialized skills or expertise has been applied
in making the estimate . All disclosures related to the estimate , including disclosures describing
estimation uncertainty , are complete and reasonable in the context of U.S . GMP. No subsequent
events have occurred that would require adjustment to the estimate and related disclosures included
in the financial statements.
6 . The methods , assumptions and data used to measure the Agency 's pension plans · net pension liability
and related pension amounts are as follows , and result in an estimate that is appropriate for financial
statement measurement and disclosure purposes and have been consistently selected and applied in
making the estimate . The significant methods and assumptions used in determ ini ng the pension plans '
net pens ion liability and related pension amounts include Entry Age Normal Method, amortized using
level dollar closed with an investment rate of return of 7.4% for the General Employee retirement system
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and 7.65% for the Firefighters and Police retirement system . Sign ifi cant judgments made in making
the estimate have taken into account all relevant information of wh ich we are aware. Appropriate
specialized skills or expe rti se has been applied in making the estimate. All disclosures related to the
estimate, including disclosures describing estimation uncertainty, are complete and reasonable in the
context of U.S . GAAP . No subsequent events have occurred that would require adjustment to the
estimate and related disclosures included in the financial statements .
7. Related-party transactions have been recorded in accordance with the economic substance of the
transaction and appropria tely accounted for and disclosed in accordance with the requirements of U.S.
GAAP . Types of related party transactions engaged in by the Agency include:
a . Those with the primary government having accountability for the Agency.
b. Those with other organizations for which the nature and significance of their relationship with the
Agency are such that exclusion would cause the reporting entity's financial statements to be
misleading or incomplete .
c . lnterfund transactions , including interfund accounts and advances receivable and payable and
interfund transfers .
8. The financial statements properly classify all funds and activities in accordance with GASB Statement
No . 54, Fund Balance Reporting and Governmental Fund Type Definitions , as amended .
9. The Agency is following either its established accounting policy regarding which resources (that is ,
restricted, committed , assigned or unassigned) are considered to be spent first for expenditures for
which more than one resource classification is available or is following paragraph 18 of GASB
Statement No . 54 to determine the fund balance classifications for financial reporting purposes.
10 . The Agency evaluated the financia l statements for all fiduciary activities required by GASB Statement
No . 84 , Fiduciary Activities, as amended and did not note any for inclusion.
11. All events subsequent to the date of the financial statements , and for which U.S . GAAP requires
adjustment or disclosure , have been adjusted or d isclosed.
12 . The effects of all known actual or possible litigation and claims have been accounted for and d isclosed
in accordance w ith U.S. GAAP.
13. Management has followed applicable laws and regulations in adopting , approving and amending
budgets.
14 . Capital assets, including infrastructure, intangible assets, and right of use assets are properly
capitalized , reported and , if applicab le , depreciated .
15. The government has properly separated information in debt disclosures related to direct borrowings
and direct placements of debt from other debt and disclosed any unused lines of credit , collateral
pledged to secure debt , terms in the debt agreements related to s ignificant default or termination events
with finance-related consequences and significant subjective acceleration clauses in accordance with
GASB Statement No . 88 .
16. Components of net position (net investment in capital assets , restricted , and unrestricted) and
classifications of fund balance (nonspendable , restricted , committed , assigned , and unass igned) are
properly classified and , if applicab le , approved.
17. Revenues are appropriately classified in the statement of act ivities within program revenues, general
revenues , contributions to term or permanent endowments, or contributions to permanent fund
principal.
18 . Expenses have been appropriately classified in or allocated to functions and programs in the statement
of activities , and allocations have been made on a reasonable basis .
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19. lnterfund , internal, and intra-entity activity and balances have been appropriately classified and
reported.
20 . The Agency's policy regarding whether to first apply restricted or unrestricted resources when an
expense is incurred for purposes for which both restricted and unrestricted net position is available and
appropriately disclosed and that net position is properly recognized under the policy.
21 . We believe that the actuarial assumptions and methods used to measure the Agency's OPEB and
pension liabilities and related costs for financial accounting purposes are appropriate in the
circumstances .
22 . We have no direct or indirect legal or moral obligation for any debt of any organization, public or private ,
or to special assessment bond holders , that is not disclosed in the financial statements.
23. We have complied with all aspects of laws , regulations and provisions of contracts and agreements
that would have a material effect on the financial statements in the event of noncompliance
24. We have no knowledge of any uncorrected misstatements in the financial statements .
Information Provided
25. We have provided you with:
d. Access to all information of which we are aware that is relevant to the preparation and fair
presentation of the basic financial statements such as records, documentation and other matters.
e. Additional information that you have requested from us for the purpose of the audit.
f. Unrestricted access to persons within the Agency from whom you determined it necessary to obta in
audit evidence.
g. Minutes of the meetings of the governing board and committees, or summaries of actions of recent
meetings for which minutes have not yet been prepared.
26. All transactions have been recorded in the accounting records and are reflected in the basic financial
statements.
27 . We have disclosed to you the results of our assessment of risk that the basic financial statements may
be materially misstated as a result of fraud.
28 . It is our responsibility to establish and maintain internal control over financial reporting. One of the
components of an entity's system of internal control is risk assessment. We hereby represent that our
risk assessment process includes identification and assessment of risks of material misstatement due
to fraud. We have shared with you our fraud risk assessment, including a description of the risks, our
assessment of the magnitude and likelihood of misstatements arising from those risks, and the controls
that we have designed and implemented in response to those risks.
29 . We have no knowledge of allegations of fraud or suspected fraud affecting the Agency's basic financial
statements involving:
a. Management.
b. Employees who have significant roles in internal control.
c. Others where the fraud could have a material effect on the basic financial statements.
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30 . We have no knowledge of any a ll egations of fraud or suspected fraud affecting the Agency's basic
financial statements received in communications from employees , former employees , analysts ,
regulators , or others.
31 . We have no knowledge of noncompliance or suspected noncompliance with laws and regulations .
32. We have disclosed to you all known actual or poss ible litigation and cla im s whose effects should be
considered when preparing the financial statements .
33 . We have disclosed to you the identity of all of the Agency's related parties and all the related-party
relationships and transactions of which we are aware .
34 . Except as disclosed in your reports, we are aware of no sign ificant deficiencies , including material
weaknesses, in the design or operation of internal controls that could adversely affect the Agency 's
ability to record , process , summarize and report financial data.
35 . There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in , financial reporting practices .
36 . We believe that the actua r ial assumptions and methods used by the actuary for funding purposes and
for determining accumulated Plan benefits are appropriate in the circumstances. We did not give
instructions , or cause any instructions to be given , to the specialists with respect to the values or
amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that
have had an impact on the independence or objectivity of the Plan 's actuary.
37. During the course of your audit, you may have accumulated records containing data that should be
reflected in our books and records. All such data have been so reflected. Accordingly , copies of such
records in your possession are no longer needed by us .
Supplementary Information
38. With respect to supplementary information presented in relation to the basic financial statements as a
whole:
h. We acknowledge our responsibility for the presentation of such information.
i. We believe such information , including its form and content, is fairly presented in accordance with
U.S. GAAP.
j. The methods of measurement or presentation have not changed from those used in the prior
period.
k. When supplementary information is not presented with the audited basic financial statements , we
will make the audited basic financial statements readily available to the intended users of the
supplementary informati on no later than the date of issuance of the supplementary information and
the aud itor 's report thereon.
39 . With respect to Required Supplementary Information presented as required by the Governmental
Accounting Standards Board (GASS) to supplement the basis financial statements :
a. We acknowledge our responsibility for the presentation of such required supplementary
information.
b. We believe such required supplementary information is measured and presented in accordance
with guidelines prescribed by U.S . GAAP .
c. The methods of measurement or presentation have not changed from those used in the prior
period .
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Compliance Considerations
In connection with your audit conducted in accordance with Government Auditing Standards, we confirm
that management:
40 . Is responsible for the preparation and fair presentation of the financial statements in accordance with
the applicable financial reporting framework .
41. Is responsible for compliance with the laws, regulations and provisions of contracts and grant
agreements applicable to the auditee .
42 . Is not aware of any instances of identified and suspected fraud and noncompliance with provisions of
laws , regulat ions, contracts , and grant agreements that have a material effect on the financial
statements.
43. Is responsible for the design, implementation and ma intenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
44 . Acknowledges its responsibility for the design , implementation and maintenance of controls to prevent
and detect fraud.
45. Has a process to track the status of audit findings and recommendations.
46 . Is not aware of any investigations or legal proceedings that have been initiated with respect to the
period under audit.
47. Has provided views on the auditor's reported findings, conclusions and recommendations, as well as
management's planned corrective actions , for the report.
48 . Acknowledges its responsibilities as it relates to non-audit services performed by the auditor, including
that it assumes all management responsibilities ; that it oversees the services by designating an
individual, preferably within senior management, who possesses suitable skill , knowledge or
experience ; that it evaluates the adequacy and results of the services performed ; and that it accepts
responsibility for the results of the services.
Miami Beach Redevelopment Agency :
Jo ~-------------
Chief Financial Officer
~
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miam i Beach , Florido 33139, www.miomibeochA.gox
July 6 , 2022
RSM US , LLP
80 1 Br ickell Avenue , Suite 1050
M iami , FL 3313 1
In connection wi t h your examination of Miami Beach Redevelopment Agency 's (the "Agency"), a
Component Unit of the City of Miam i Beach , Florida , compliance wi th Section 218.415 Florida Statutes ,
Local Government Investment Policies (the Specified Requirements) during the period from October 1,
2020 to September 30 , 2021 , in accordance with attestation standards established by the American Inst itute
of Certified Public Accoun tants, we confirm , to the best of our knowledge and belief, the following
representat ions made to you during the course of you r engagement:
1. We assert that , during the per iod from Octobe r 1, 2020 to September 30 , 202 1, the Agency was in
compliance with the Specified Requi rements .
2. All relevant matters are reflected in the measurement or eva luation of the compl iance with the Specified
Requirements .
3. There are no known matters contradicting the compliance with the Specified Requirements or our
assertion nor any commun icat ion from regulatory agenc ies affecti ng the comp li ance with the Specified
Requirements or our assert ion .
4 . We are respo nsible for the Agency 's compl iance with the Specified Requirements , for our assertion
and for establish ing and maintain ing effective interna l contro l over the Agency's compliance with the
Specified Requirements .
5. We understand that we are responsible for determ ining that such criteria are su itable , will be available
to the intended users , and are appropriate for the purpose of your engagement.
6 . We have performed an eva luation of the Agency 's compliance with the Specified Requirements . Based
on our evaluation , the Agency has complied with the Specified Requirements during the period from
October 1, 2020 to September 30, 2021 based on the abovementioned criteria .
7. No events or transac t ions have occur red subsequent to September 30 , 2021 , or through the date of
th is letter, tha t would have a material effect on the Agency 's compliance with the Specified
Requ irements .
8. We have made available to you all documentation related to the Agency 's compliance w ith the Specified
Requirements as agreed upon in the terms of the engagement.
9 . We have responded fully to all inquiries made to us by you during your engagement.
10 . We believe that significant assumptions used in making any material estimates are reasonable.
11 . There has been no deficiencies in internal control relevant to your engagement of wh ich we are aware .
12. There has been no knowledge of fraud or suspected fra ud affecting the Agency involving :
a . Management.
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Page 2 of 2
b. Employees who have significant roles in internal control.
c. Others where fraud could have a material effect on the Agency's compliance with the Specified
Requirements .
13. We acknowledge our responsibility for the design and implementation of programs and controls to
provide reasonable assurance that fraud is prevented and detected.
14 . We have no knowledge of any allegations of fraud or suspected fraud affecting the Agency received in
communications from employees, former employees, analysts, regulators, short sellers or others.
15. There has been no known noncompliance with the Specified Requirements during the period from
October 1, 2020 to September 30, 2021 , or through the date of this letter.
16. There are no known communications from regulatory agencies , internal auditors or other practitioners
concerning the Agency's possible noncompliance with the Specified Requirements received by us
during the period from October 1, 2020 to September 30, 2021, or through the date of this letter.
17. During the course of your engagement, you may have accumulated records containing data that should
be reflected in our books and records. All such data have been so reflected. Accordingly, copies of
such records in your possession are no longer needed by us.
The City of Miami Beach, Florida
Chief ·nancial Officer
:f);(b,u
V ne,
A nt Finance Director
EXHIBIT C
Recent Accounting Pronouncements
RECENT ACCOUNTING PRONOUNCEMENTS
The following accounting pronouncements have been issued as of report date but are not yet effective
and may affect the future financial reporting by the Agency .
Pronouncement
GASB 87, Leases
GASB 91, Conduit Debt
Obligations
GASB 92, Omnibus 2020
GASB 93, Replacement of
Interbank Offered Rates
GASB 94, Public-Private and
Public-Public Partnerships
and Availability Payment
Arrangements
GASB 96, Subscription-
Based Information
Technology Arrangements
Summary
This statement improves the accounting and financial reporting for leases
by governments . The provisions of this statement will be effective for the
Agency beginning with its year ending September 30, 2022.
This statement provides a single method of reporting conduit debt
obligations by issuers and eliminates diversity in practice associated with :
(1) commitments extended by issuers, (2) arrangements associated with
conduit debt obligations and (3) related note disclosures. The provisions
of this statement will be effective for the Agency beginning with its year
end ing September 30 , 2023 .
This statement enhances comparability in accounting and financial
reporting and to improve the consistency of authoritative literature by
addressing practice issues that have been identified during
implementation and application of certain GASS Statements. The
requirements of this Statement are effective for the Agency beginning
with its year ending September 30, 2022 .
This statement addresses accounting and financial reporting implications
that result from the replacement of a LIBOR. The requirements of this
Statement are effective for the Agency beginning with its year ending
September 30 , 2022.
This statement improves financial reporting by addressing issues related
to public-private and public-public partnership arrangements (PPPs). This
Statement also provides guidance for accounting and financial reporting
for availability payment arrangements (APAs). The requirements of this
Statement are effective for the Agency beginning with its year ending
September 30 , 2023 .
This statement provides guidance on the accounting and financial
reporting for subscription-based information technology arrangements
(SBITAs) for government end users (governments). The requirements of
this Statement are effective for the Agency beginning with its year ending
September 30 , 2023 .
Pronouncement
GASB Statement No. 97,
Certain Component Unit
Criteria, and Accounting and
Financial Reporting for
Internal Revenue Code
Section 457 Deferred
Compensation Plans-an
amendment of GASS
Statements No . 14 and No.
84 , and a supersession of
GASS Statement No. 32
GASB 99, Omnibus 2022
GASB 100, Accounting
Changes and Error
Corrections-an amendment
of GASB Statement No. 62
'Summary
The primary objectives of this statement are to : (1) increase consistency
and comparability related to the reporting of fiduciary component units in
circumstances in which a potential component unit does not have a
governing board and the primary government performs the duties that a
governing board typically would perform ; (2) mitigate costs associated
with the reporting of certain defined contribution pension plans , defined
contribution other postemployment benefit (OPES) plans , and employee
benefit plans other than pension plans or OPES plans (other employee
benefit plans) as fiduciary component units in fiduciary fund financial
statements ; and (3) enhance the relevance, consistency and
comparability of the accounting and financial reporting for Internal
Revenue Code (IRC) Section 457 deferred compensation plans (Section
457 plans) that meet the definition of a pension plan and for benefits
provided through those plans . The provisions of this statement will be
effective for the Agency beginning with its year ending September 30 ,
2022 .
The requirements of this Statement are effective as follows :
The requirements related to extension of the use of LISOR , accounting
for SNAP distributions, disclosures of nonmonetary transactions , pledges
of future revenues by pledging governments , clarification of certain
provisions in Statement 34, as amended, and terminology updates
related to Statement 53 and Statement 63 are effective upon issuance.
The requirements related to leases, PPPs, and SSITAs are effective for
fiscal years beginning after June 15, 2022 , and all reporting periods
thereafter.
The requirements related to financial guarantees and the classification
and reporting of derivative instruments within the scope of Statement 53
are effective for fiscal years beginning after June 15 , 2023 , and all
reporting periods thereafter. The requirements of this Statement are
effective for the Agency beginning with its year ending September 30 ,
2024 .
This Statement defines accounting changes as changes in accounting
principles , changes in accounting estimates , and changes to or within the
financial reporting entity and describes the transactions or other events
that constitute those changes . As part of those descriptions, for (1)
certain changes in accounting principles and (2) certain changes in
accounting estimates that result from a change in measurement
methodology, a new principle or methodology should be justified on the
basis that it is preferable to the principle or methodology used before the
change . That preferability should be based on the qualitative
characteristics of financial reporting-understandability , reliability ,
relevance, timeliness , consistency , and comparability . This Statement
also addresses corrections of errors in previously issued financial
statements. The requirements of this Statement are effective for the
Agency beginning with its year ending September 30, 2024.
I
Pronouncement
GASB 101, Accounting
Changes and Error
Corrections-an amendment
of GASB Statement No . 62
Summary
The objective of this Statement is to better meet the information needs of
financial statement users by updating the recognition and measurement
guidance for compensated absences. That objective is achieved by
aligning the recognition and measurement guidance under a unified
model and by amending certain previously required disclosures . The
requirements of th is Statement are effective for the Agency beginning
with its year ending September 30, 2025 .