Cultural Arts CouncilMIAMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
TO:
VIA:
FROM:
Jorge M. Gonzalez, City Manager 1Q
Kathie G. Brooks, Budget and Pr~:;r.r. ance Improvement Director t:f/
James J. sutter, Internal Auditor
DATE:
AUDIT:
PERIOD:
January 30, 2009 ·
Miami Beach Cultural Arts Council
October 1, 2006 to September 30, 2007
This audit of the Miami Beach Cultural Arts Council (CAC) covering the 2006/07 fiscal year was
performed in compliance with the annual audit requirements specified by City Code Section 2-64.
INTRODUCTION
On March 5, 1997, the City Commission passed City Ordinance No. 97-3075 thereby creating the
Miami Beach Cultural Arts Council (CAC) to develop, coordinate, and promote the performing and
visual arts in Miami Beach for the enjoyment, education, cultural enrichment, and benefit of both
residents and visitors. Since that time, the City has awarded in excess of $5,000,000 in cultural art
grants, supporting thousands of performances, exhibits and other cultural activities in Miami Beach.
On June 3, 1998 the City Commission approved the Miami Beach Cultural Arts Council Master Plan
through Resolution No. 98-22760. The Master Plan process began in October of 1997 and was the
result of a series of public town meetings held in cultural venues throughout Miami Beach. At these
sessions, Council members heard directly from members of the City's cultural community and from
other municipal agencies and boards with a stake in the City's cultural future. The Master Plan
included the program areas of Cultural Grants Program, Join Marketing, Cultural Facilities,
Advocacy and Planning, and Revenue Development; each with individual objectives.
In fiscal year 2004/05, the City Commission authorized expanding the allocation of the 50% of the
1% Resort Tax previously equally distributed to North Beach, Middle Beach and South Beach, to
including funding for the arts. This funding is distributed in the year after it is collected. As a result,
the 1% resort tax revenues collected in FY 2005/06 were distributed to North Beach, Middle Beach
South Beach and the Arts in FY 2006/07. This commitment of funding for arts and culture provided a
new permanent funding source that sustains cultural programming long term.
In an effort to address the needs of the arts community, CAC staff annually reviews each of the
grants programs (currently Cultural Anchors; Cultural Heritage; Artistic Disciplines, Arts & Cultural
Education, Cultural Presenters; and Cultural Tourism). A summary of each grant program follows:
• Cultural Anchors provide grants to the major preeminent arts institutions physically based in
Miami Beach, whose primary mission is year round artistic and cultural programming that
contributes significantly to the City's cultural life. Organizations must have minimum
organizational budget levels of $750,000 and the monies received may be used towards
operational expenses in association with the annual cultural programming described in the
application.
• Cultural Heritage provides project specific grants for arts programming to not-for-profit
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Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
501 c(3) Miami Beach based institutions devoted to promoting and protecting the diverse
heritage, traditions and culture of Miami Beach. Grants may be used for presentation of
visual and performing arts, arts programs and workshops, and other projects which
emphasize the artistic experience and are accessible to a broad audience.
• Artistic Disciplines funding is limited to arts and cultural organizations whose primary mission
is to create and present work in one of the following artistic disciplines; Dance, Music
Theater, Film and Visual Arts. Proposed projects should be for work that is new or has
never before been presented in Miami Beach.
• Arts & Cultural Education provides grants to cultural organizations whose primary mission is
to provide support for rich and challenging arts learning opportunities for children and adults
in Miami Beach schools and neighborhoods. Grants may be used for workshops,
lectures/demonstrations, and other projects designed to increase skills and awareness of
the arts.
• Cultural Presenters provide grants to organizations whose primary mission is to produce and
present cultural and artistic productions.
Suggestions and ideas are received from grantees, grants' panelists, members of the CAC and
other granting organizations through orientation meetings held at the beginning of each grant period,
consultations with grantees, public application and proposal reviews, public meetings held at the
end of the review cycle, the Grants Task Force, and through staff, so that the programs can
continually be improved. Program application periods and relevant deadlines are announced in
January via press releases, electronic mail, on its website and in area newspapers. Program
guidelines, applications and instructions are created in Microsoft Word format and made available
on the website in both English and Spanish.
Eligible organizations must be non-profit, 501 c(3) cultural organizations and cultural departments
within an institution of higher learning (college or university) with tax-exempt status under
subsections of 501 c( s) wishing to present or produce cultural and artistic events in the City of Miami
Beach. Furthermore, any applying organization that satisfies one of the following criteria is not
entitled to receive funding:
• applied through a fiscal agent
• received prior CAC grant funding and did not comply with the Grant Agreement and/or other
requirements
• did not include the City of Miami Beach logo and required credit line in all publications
related to the grant
• received funding from the Miami Beach Visitor and Convention Authority (VCA) during the
same fiscal year.
A total of $895,000 was requested in grant monies by fifty organizations for the 2006/07 fiscal year.
Each grant applicant must follow an extensive multi-level public review process which includes a
general orientation for all applicants and required consultations with CAC staff to determine eligibility
and appropriate programs. Applicants must meet all application requirements, including deadlines,
or be disqualified. A mandatory dollar for dollar match is applicable to all grants programs which
must be demonstrated through cash, other matching grants and/or in-kind contributions.
Applications were scored by the CAC at a series of publicly noticed panel meetings. Applicants
should attend their panel meeting where they will be permitted to respond to panelists' questions. A
score will be assigned to the applicant and must exceed 80% to be eligible to receive funding.
Page 2 of 12
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
The City Commission through the passage of Resolution No. 2006-26338 awarded grants totaling
$642,888 to these fifty eligible organizations during the audit period. The largest award of $33,250
was given to the New World Symphony while the lowest amount received was Mid-Eastern Dance
Exchange's $7,566.67. These authorized grant recipients receive half their funding upon submittal
and approval of the required documents with the remaining half upon completion.
Additionally, the CAC partnered with the VCA for Cultural Tourism grants that support cultural events
with documented tourism benefits. The VCA provided $75,000 and the CAC has already provided
$50,000 out of their 2005/06 fiscal year budget to fund this program in fiscal year 2006/07. Again,
these authorized grant recipients receive half their funding upon submittal and approval of the
required documents with the remaining half upon completion.
Program revenues, expenditures and fund balances for the fiscal years as presented in the City's
General Ledger were as follows:
*
I F¥06/07
Beginning Fund Balance $ 2,316,112
Actual Revenues 1,619,749
Actual Expenditures 1 '135, 143
Ending Fund Balance * $ 2,800,717
CAC grant recipients often receive the second half of their funding in the next fiscal year following the submittal
and approval ofthe required documents. Therefore, each fiscal year's beginning and ending fund balances are
overstated by these timing balances. For example, the $2,800,717 ending fund balance includes $146,129.34
in grant funds awarded during the 2006/07 fiscal year that were actually paid in 2007/08.
CAC's ending fund balance, which includes an endowment of $1,220,000 held in a restricted cash
account, increased by $484,606 (20.92%); from $2,316,112 to $2,800,717 as of September 30,
2007. In fiscal year 2006/07, the City Commission appropriated 50% of the 1% of Resort Tax
($824,082 was budgeted) to each of North Beach, Middle Beach, South Beach and Tourism and
Cultural Development for Cultural Affairs.
Under Resolution No. 99-23228, the City Commission approved the appropriation of $220,000 from
the CAC budget to provide matching funds in the form of a non-interest bearing loan to fund a
portion of the Colony Theatre Improvements. Since the City was able to obtain the maximum grant
award from the State's Cultural Arts Facilities Grant Program, the loan has been reduced to
$165,000. The City will repay the loan to the Cultural Arts Council from the 70% recapture of the
Colony Theatre Cafe revenues. As of September 2007, the total amount in the Colony Theater
Trust account was $143,139.82 with no payments made during the 2006/07 and 2007/08 fiscal
years.
OVERALL OPINION
The Cultural Arts Council (CAC) has properly followed the guidelines established by the Miami
Beach City Commission as to their purpose in the City. It has established a master plan for the arts,
and developed and established criteria and guidelines for review and funding for qualified not-for-
profit organizations. The entire program's funds were properly and timely deposited, accounted for,
and recorded in the CAC's books and records. However, allocation for interest earned was not
properly recorded, and balances for endowment funds were not reflective of the proper amount.
Page 3 of 12
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
As the result of our verification of departmental measures, we noted that there were inaccuracies in
some of the measures reported in the City's performance management software. These measures
should be changed to reflect the data supported by the department's records.
PURPOSE
To determine whether the Cultural Arts Council complied with tested requirements set forth by the
City Commission during the 2006/07 fiscal year, which includes the timely distribution of approved
grant funds in the correct amount to qualified eligible not-for-profit organizations; properly reported
all grant payments in the City's Financial System; accurately reported data in the City's performance
management software.
SCOPE
1. Confirm that the Cultural Arts Council has developed, established and adhered to criteria
and guidelines for review and funding of qualified not-for-profit arts organizations.
2. Confirm that the Cultural Arts Council consists of eleven members, who are appointed for
three-year terms and no more than six consecutive years, are residents or own businesses
on Miami Beach.
3. Confirm that Cultural Arts Council meetings are held once a month (excluding August) and
that one public hearing is held annually.
4. Confirm that grant payments were correctly recorded in the City's Financial System.
5. Select a sample of grants awarded, ensuring that all grant categories are represented, and
confirm that funds paid for grants were for approved programs, meeting the criteria set forth
by the Cultural Arts Council.
6. Confirm that departmental measurement data reported on the City's performance
management system is accurately calculated and properly supported by source
documentation.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
1. Finding -Endowment (restricted cash) balance and Earned Interest
Along with the adoption of the Cultural Arts Council's Master Plan, the Revenue Development
area of the program was approved. The main objective of this program area was to develop a
strategy to ensure the availability of sufficient recurring revenues for the continuing of the arts
development in Miami Beach. In relation to the objective, the Council agreed to include an
endowment as part of its budget. The purpose for the endowment was to provide funding for the
program from interest earned once the fund balance grows to sufficient levels that could sustain
the program outflows. The endowment balance of $1,220,000, as of September 30, 2007 is
reflected in a "restricted cash" category of the City's General Ledger ensuring its conservation.
As a result of our audit we found that endowment increases were the result of City contributions
through the program's budget process. Earned interest that should have been added to the
overall endowment balance at the end of each fiscal year was not included in the endowment
balance, therefore slowing the endowment's growth. However as contained in the City's
Manager's Adopted Budget Message of 9/26/07, it is clear that the City's intent was to apply
interest earnings to the fund.
Page 4 of 12
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
Recommendation( s)
In order to show the correct balance of the endowment funds, Internal Audit recommends
calculating (considering interest compounding) the corresponding interest earned starting on
fiscal year 1998/99 through the current fiscal year by the endowment funds and reclassifying it
from the pooled cash to the overall endowment balance. Completing this entry will contribute to
a more accurate representation of current endowment balances.
Management Response
Based on your recommendation, the Finance department will do the following effective for
the fiscal year beginning October 1, 2008:
• Rename the general ledger account 'Endowment-Cash'.
• Calculate on a compounded basis, the interest earned from fiscal year 1999,
which is the year the endowment balance was first posted to the general ledger.
• Reclassify the interest earned on the endowment cash from fiscal 1999 through
fiscal year 2008 from the pooled cash account to the Endowment-Cash
account.
• Calculate and credit interest to the Endowment-Cash account on a quarterly
basis beginning in fiscal year 2009.
2. Finding -Cultural Arts Council's Fund Balance
The Cultural Arts Council's (CAC) year-end fund balance increased from $1,253,084.21 in the
2004/05 fiscal year to $2,800,717 for 2006/07 including $146,129.34 in monies still owed to
grant recipients at year end. Although outside the specified audit period, the year-end fund
balance was determined to be $3,048,347 for 2007/08, as it continues to grow each year. The
current fund balance increase includes an endowment fund contribution of $100,000 for the
2006/07 year. As reflected on Exhibit 3, latter attached to the report, the fund balance increased
for a total of $384,606, excluding the aforementioned endowment contribution (increased
$484,606 if including the endowment contribution). Interest earned from the endowment is also
included on the fund increase amount of $384,606 and responsible for the overall Cultural Arts
Council's fund balance.
Recommendation( s)
Once implementing the recommendation from finding 1, any remaining surplus ($384,606 minus
calculated interest for the year) could be contributed to the endowment (restricted cash)
balance; therefore facilitating the continuing growth of the endowment funds.
Management Response
The Finance and Tourism and Cultural Development departments agree that the fund balance
continues to increase. The recommendation provided for use of the surplus is useful, but the
Tourism and Cultural Development department would like the opportunity to recommend
alternative uses for the surplus. This will occur during the fiscal year 2010 budget process.
3. Finding -Colony Theatre Cafe!Segafredo Loan Repayments
Under Resolution No. 99-23228, the City Commission approved the appropriation of $220,000
from the CAC budget to provide matching funds in the form of a non-interest bearing loan to
fund a portion of the Colony Theatre Improvements. Since the City was able to obtain the
maximum grant award from the State's Cultural Arts Facilities Grant Program, the loan was
subsequently reduced to $165,000. The City was to repay the loan to the CAC from the 70%
recapture of the Colony Theatre Cafe/Segafredo rental revenues.
Page 5 of 12
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
Monies received from the rental revenues were placed into the Colony Theatre Trust Account
601-7000-229220 through 09/30/05 as the balance grew to $143,139.82. However, no
additional monies were put into this trust account during the 2006/07 and 2007/08 fiscal years
despite continuing to collect rental revenues and not yet reaching the $165,000 desired balance.
We could not locate any evidence that the City (CAC) loaned $165,000 to the Colony Theatre
Cafe. Consequently, the monies should not be held in a trust account to pay back a loan that
was not made.
Recommendation( s)
Since the initial purpose of the loan was to assist in the funding of the renovation of the Colony
Theatre is no longer valid, the Finance Department should research the possibility to close the
trust account and transfer the $143,139.82 balance to the operating account/General Fund so
that it can be used for other purposes. However, we suggest completing the transfer after
January 2009, once all grants that might have require the guarantee are closed.
Management Response
The Finance Department could not locate any evidence of a loan in the amount of $165,000
from the Cultural Arts Council to the Colony Theatre. We agree that since there is no evidence
of an agency relationship for the $143,139.82 which is currently recorded in the City's agency
fund (601-7000-229220), that the account should be closed and the funds transferred to the
City. The Tourism and Cultural Development Department would like to recommend that the
funds be placed in a capital reserve fund for future capital needs of the Colony Theater.
4. Finding -Tested Grantee Applications
Fifty grantees applications were awarded monies by the CAC for the 2006/07 fiscal year. Ten
(20% of total grant recipients) of these grant recipients were selected, ensuring representation of
all award categories (Cultural Anchors; Cultural Heritage; Artistic Disciplines, Arts and Cultural
Education, Cultural presenters, and Cultural Tourism) on the sample, for testing representing
$175,808 out of a total of $642,888 awarded or 27.35%. The corresponding grant files were
reviewed to confirm that the eligibility requirements had been satisfied (i.e. to determine whether
the final reports were submitted with the proper supporting documentation and copies of the
cancelled checks as required by CAC procedures). All tested grant files were found to have the
required supporting documentation.
In addition, we verified that the required bylines and logos were present in the grantees'
advertisements and literature. We also confirmed that the grants were awarded in the correct
categories. No exceptions were noted during the audit period as CAC is properly documenting
the awarded tested programs in the grantees' files.
Recommendation( s)
No response is needed.
5. Finding -Review of Departmental Measures
The CAC measures both the number and amounts of grants awarded by the Commission, as
well as the actual number of grants issued (output measures). These numbers may differ as the
number of grants issued is usually not available until the end of the year since grantees may
withdraw or be denied funding due to not fulfilling grant requirements.
These departmental measures are reported in the City's performance management software.
Page 6 of 12
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
We reviewed the basis for each measure and compared the reported amounts to the actual
supporting documentation.
For the measures reported annually in the City's Environmental Scan we noted the following
differences:
A review of these measures reported in the Environmental Scan published in 2008 showed that
the audited differences, noted for the 2003/04, 2005/06 fiscal years reported in our previous year
audit, were not corrected as of the conclusion of this audit. For the fiscal year 2006/07, the CAC
reported that the City Commission awarded fifty-one grants totaling $642,887 when City
Resolution 2006-26338 stated that only fifty grants were awarded. Internal Audit's subsequent
review of CAC's provided records confirmed that the listed audited figures were correct.
Results from the audit of the amount of cultural grants issued (paid out), as reported in the
performance management software were as follows:
A review of the performance management software showed that the audited difference noted in
the 2005/06 fiscal year reported in our previous year audit, was not corrected as of the
conclusion of this audit. Meanwhile, fifty-one grants are listed as issued for the 2006/07 fiscal
year, which contradicts CAC's supporting records indicating that there were only forty-nine.
Internal Audit's testing showed that the Entertainment Industry Incubator did not qualify to
receive any of the $8,155.56 previously awarded by the City Commission thereby reducing the
number awarded of fifty to forty-nine.
Finally, the description for this measurement in City's Performance Management software was
left blank leaving no indication as how the measure is derived.
After completing our review of the above measures for fiscal year 2006/07, we determined the
following assessment categories suitable as defined in Exhibit 1 attached:
, ·.·· .. source . · ... ·. . ··. ····.·. ·. Name. bfMeasure .•. · . Assessment Category
Environmental Scan # of grants Awarded Certified with Qualifications
Environmental Scan Grant Award Amounts Certified
Performance #of grants Issued (Actual) Inaccurate
Manaqement Software
Page 7 of 12
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
Recommendation( s)
The identified incorrect measures for grants awarded on the Environmental Scan and for the
number of grants issued, reported in the performance management software, should be
corrected. In addition, the description field in the performance measure should be revised by the
department to include the methodology for deriving the measure, the data source, and
references and/or sources of comparable benchmarks.
Management's Response
Tourism and Cultural Development agrees with the aforementioned recommendation.
EXIT CONFERENCE
An exit conference was held on January 16, 2009 and the participants included Max Sklar (Tourism
Development Director), Gary Farmer (Cultural Affair Program Manager), Mary Heaton (Grants &
Operations Administrator), James Sutter(lnternal Auditor), Mark Coolidge (Senior Auditor) and Fidel
Miranda (Auditor). A second exit conference was held on January 23, 2009 with Georgie Echert
(Assistant Finance Director) and Allison Williams (Chief Accountant). All present were in agreement
with the findings and recommendations discussed and management responses were submitted
shortly thereafter for inclusion in this report.
JJS:LR:MC:FM
Audit performed by Laura Franco-Rubines, Mark Coolidge and Fidel Miranda
F:\obpi\$AUD\INTERNAL AUDIT FILES\DOC0?-08\REPORTS-FINAL\CAC2007.doc
cc Max Sklar, Cultural Arts and Tourism Development Director
Gary Farmer, Cultural Affairs Program Manager
Patricia Walker, Chief Financial Officer
Georgie Echert, Assistant Finance Director
Page 8 of 12
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
EXHIBIT: 1 -Assessment Categories for Performance Measures Verification
.••. ·· .AssessrnentCat~gory. ........ . ~ > .•• : •.. '' .. .•···· .. Criteria ... . : • · .. :>:· , .
If reported performance is 100% accurate and if it appears that
Certified controls are in place to ensure accuracy for collecting and reporting
performance data. Measurement data is supported by source
documents.
This category is assigned under either one of two conditions:
1. Reported performance is within +/-3%, but the controls over
data collection and reporting are not adequate to ensure
Certified with Qualifications continued accuracy.
2. The department's calculation of actual performance deviates
from the measure definition, but was still within an acceptable
range.
Documentation is unavailable or incomplete and controls are not
Factors Prevented Certification
adequate to ensure accuracy. This category is also assigned when
there is a deviation from the measure definition and the reviewer
cannot determine the correct measure result.
Inaccurate Actual performance is not within 3% of reported performance, or
there is a greater than 5% error in the sample of documents tested.
EXHIBIT: 2 -Additional References for Performance Management Software's
Description of Measure
1) Measure Name:
2) Measure Type:
3) Measure Description:
4) Measure Frequency:
5) Data Sources:
6) Calculation Methodology:
Should list the name of the measure for which data is being
collected and reported.
Should recognize whether the measure is an "Input", "Output", or
"Outcome" measure. One must consider whether results are
measured through input (Ex: Customer surveys), output (Ex:
Number of contracts completed without change orders), or outcome
(Ex:% of projects substantially completed or in beneficial use within
120 days).
Should describe the measure. Some measures are self
explanatory and some may not; however, a description should
always be included (Ex: The measure considers the% of change in
the value of the change orders for a specific category divided by the
original project cost).
Describes how often performance data is reported (Ex: Quarterly).
Should list sources used to collect performance data (Ex: System
Software Names, Report Names, Schedules, etc.)
Should explain how data reported was calculated (Ex: change
orders for that quarter divided by the original total projects costs,
projects substantially completed or in beneficial use within 120 days
of the contract milestone date divided by the total number of
projects completed during the same quarter).
Page 9 of 12
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
EXHIBIT: 3 - A
CULTURAL ARTS COUNCIL (C.A.C.)
FINANCIAL SUMMARY FOR FISCAL YEAR 2007
(BALANCE SHEET AS OF SEPTEMBER 30, 2007)
"UNAUDITED"
ASSETS:
CASH IN BANK
SUNTRUST-POOLED CASH
SUNTRUST-CULTURAL ARTS COUNCIL
TOTAL CASH IN BANK
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE-CITY BILLS
ACCOUNTS RECEIVABLE-MISCELLANEOUS
TOTAL ACCOUNTS RECEIVABLE
RESTRICTED ASSETS-ENDOWMENT
CASH -RESTRICTED
TOTAL RESTICTED ASSETS-ENDOWMENT
TOTAL ASSETS:
LIABILITIES:
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE-YEAR END
TOTAL ACCOUNTS PAYABLE
ACCRUED WAGES PAYABLE
ACCRUED WAGES PAYABLE
TOTAL ACCRUED WAGES PAYABLE
ACCRUED EXPENSES
ACCRUED EXPENSES-MISCELLANEOUS
TOTAL ACCRUED EXPENSES
TOTAL LIABILITIES:
EQUITIES:
RETAINED EARNINGS-BEGINNING BALANCE
CURRENT YEAR RESULTS
TOTAL EQUITIES:
Page 10 of 12
$1,613,137.53
$ 16,038.67
$1,629,176.20
$ 50,000.00
$ 48,247.23
$ 98,247.23
$1,220,000.00
$1,220,000.00
$ 14t869.89
$ 141 ,869.89
$ 2,305.38
$ 2,305.38
$ 2,530.96
$ 2,530.96
$2,316,111.77
$ 484,605.43
$2,947,423.43
$ 146,706.23
$2,800,717.20
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
EXHIBIT: 3 -8
CULTURAL ARTS COUNCIL (C.A.C.}
FINANCIAL SUMMARY FOR FISCAL YEAR 2007
(STATEMENT OF REVENUES AND EXPENSES FOR FISCAL YEAR ENDED SEPTEMBER 30, 2007)
"UNAUDITED"
REVENUE /INFLOWS:
INTEREST REVENUE
INTEREST-US GOVERNMENT AGENCY
INTEREST-REPURCHASE AGREEMENT
INTEREST ALLOCATED-POOLED CASH
TOTAL INTEREST REVENUE
OTHER CONTRIBUTIONS AND DONATIONS
CONTRIBUTIONS-ENDOWMENT
TOTAL OTHER CONTRIBUTIONS AND DONATIONS
TRANSFER INFLOWS
TRANSFERS FROM GENERAL FUND
TRANSFERS FROM RESORT TAX-1%
TOTAL TRANSFER INFLOWS
TOTAL REVENUE /INFLOWS:
EXPENSES I OUTFLOWS:
PERSONNEL SERVICES
SALARIES AND WAGES
HEALTH AND LIFE INSURANCE
SOCIAL SECURITY AND MEDICARE
TOTAL PERSONNEL SERVICES
OPERATING EXPENDITURES
PROFESSIONAL SERVICES
TELEPHONE
POSTAGE AND SHIPPING
RENT-BUILDING AND EQUIPMENT
PRINTING
OFFICE SUPPLIES
OPERATING EXPENDITURES-OTHER
PROGRAM OPERATIONS
CONTRACTUAL SERVICES-OTHER
DUES AND MEMBERSHIPS
PROMOTIONS
TRAINING AND AWARDS
TOTAL OPERATING EXPENDITURES
Page 11 of 12
$ 428,833.32
$ 2,374.27
$ 76,632.98
$ 507,840.57
$ 100,000.00
$ 100,000.00
$ 202,000.00
$ 809,908.19
$1,011,908.19
$ 124,985.43
$ 6,130.14
lli 1,778.82
$ 132,894.39
$ 97,934.26
$ 463.78
$ 337.09
$ 570.84
$ 96.00
$ 2,614.40
$ 2,236.16
$ 207,231.25
$ 638,842.00
$ 1 ,221.50
$ 841.96
lli 4,709.65
~ 957,098.89
$1 ,619,748.76
Internal Audit Report
Miami Beach Cultural Arts Council
January 30, 2009
EXHIBIT: 3-B (CONTINUED)
INTERNAL SERVICES .
CENTRAL SERVICES
COMMUNICATIONS
SELF INSURANCE
COMPUTERS
PROPERTY ELECTRICITY CONTRACT
TOTAL INTERNAL SERVICES
TOTAL EXPENSES I OUTFLOWS:
NET FUND INCREASE I (DECREASE):
EXHIBIT: 3 -C
NOTES TO THE FINANCIAL SUMMARY:
$ 1,230.55
$ 5,990.00
$ 22,475.00
$ 15,427.00
$ 27.50
$ 45,150.05
$1,135,143.33
$ 484,605.43
1. The net increase of the fund balance in the amount of $484,605.43 includes $100,000.00 of
endowment contribution from the Sun Trust-Pooled Cash account. Net fund increase, excluding
endowment contributions (restricted cash) was $384,605.43 during Fiscal Year 2007. In addition,
there were two transfer inflows included in the calculation of net fund increase; one in the amount of
$809,908.19 from one percent (1%) of resort tax collections, and the other in the amount of$
202,000.00 from the General Fund, as reflected on the adopted budget for FY 2006107 to fund the
program.
2. Interest earned from restricted cash (endowment contributions) was included in the balance of
$76,632.98 reflected on the allocated interests from pooled cash. Both balances, the restricted cash
balance and the pooled cash balance, were considered to calculate the allocated interest earned.
3. Earned interest from restricted cash (endowment contributions) was never added to the total
restricted cash balance. Restricted cash (endowment) increases during the current fiscal year, as
well as prior fiscal years, are the result of endowment contributions from the pooled cash account,
excluding interest earned. Annual restricted cash (endowment) contribution amounts are established
by resolution at the end of each fiscal year.
Page 12 of 12