HomeMy WebLinkAboutOIG No. 25-20 State Beachfront Mgmt. Agreement - FinancialTO:
FROM:
70R G
Joseph M.Centorino,Inspector General
State of Florida Department of Environmental Protection
Joseph M.Centorino,Inspector General
DATE:December 23,2025
PROJECT:State Beachfront Management Agreement (#3595)Financial Audit Report
OIG No:25-20
PERIOD:October 1,2023,through September 30,2024
This audit report is submitted in compliance with the reporting requirement of
subparagraph (2)of the State Beachfront Management Agreement No.3595,dated
February 3,1982,extended until February 7,2032.
INTRODUCTION
State Beachfront Management Agreement No.3595 requires the City to remit to the State
of Florida Department of Environmental Protection (State)a 25%"sand tax"of any and
all monies the City collects from concessionaires for the use of State-owned property.
Pursuant to Florida Statutes,the City also collects Florida Sales tax along with the
beachfront rental revenue and remits the same to the State of Florida Department of
Revenue.
There are currently four types of beachfront property fees:
1.Concessionaire Operator Fees:Operators of concessions placed seaward of
Lummus Park,Ocean Terrace,North Shore Open Space Park,21°and 46"
Streets,and Pier Park pay for the use of the beachfront according to their
respective contractual agreements with the City.
2.Beachfront Concession Permit Fees:
a.Upland Permit Fees -A Miami Beach hotel,condominium,club,public
establishment,or other permanent,high-occupancy commercial
operation that serves the public and/or guests or residents of the upland
property located on the beachfront pays the city "upland"fees annually
based on the number of units.This fee category includes "non-upland"
property owners who have negotiated an agreement with nearby upland
fee property owners for use of the same beach access.
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b.Other Concession Permit Fees -These fees are for food and beverage
sales,beach furniture rentals,water sports rentals,parasailing rides,
and mobile cooking food sales.
3.Special One-Time Event Permit Fees:These fees are for permits granted to
members of the public who organize one-time-only events on the beach,such as
weddings and volleyball tournaments.
4.Vehicle Beach Access Fees:These fees are for events that require the parking
of essential vehicles on the beach or sand areas.
PURPOSE
The purpose of this audit is to determine whether the City complied with State Beachfront
Management Agreement No.3595 and its amended terms by accurately calculating and
timely remitting all sand tax monies due to the State of Florida Department of
Environmental Protection,equal to 25%of any and all monies collected from
concessionaires for the use of State-owned property.
RESULTS
The City remitted the following quarterly sand tax payments totaling $1,040,666.08 to the
State of Florida Department of Environmental Protection based on the revenues collected
during the 2023/24 fiscal year:
Check Date Period Check Number Check Amount
01/16/2024 Oct-Dec 2023 498479 $368,631.88
04/15/2024 Jan-Mar 2024 502274 $233,941.00
07/15/2024 Apr-Jun 2024 505747 $175,326.93
10/03/2024 Jul-Sep 2024 601043 $262,766.27
TOTAL $1,040,666.08
OVERALL OPINION
The audit fully complied with the terms and conditions outlined in the State Beachfront
Management Agreement No.3595.Our thorough examination and review of the relevant
documents,processes,and transactions confirmed that all contractual obligations were
met without any discrepancies.The OIG has determined that the City of Miami Beach
made proper payments to the State of Florida Department of Environmental Protection
during the audit period from October 1,2023,through September 30,2024.
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espectfully submitted,
Centorino,Inspector General
Norman Bla~uditor
cc:Eric Carpenter,City Manager
Jason Greene,Chief Financial Officer
OFFICE OF THE INSPECTOR GENERAL,City of Miami Beach
1130 Washington Avenue,6"Floor,Miami Beach,FL 33139
Tel:305.673.7020 •Fax:305.587.2401 •Hotline:786.897.1111
Email:CityofMiamiBeachOIG@miamibeachfl.gov
Website:www.mbinspectorgeneral.com
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