State Beachfront Management Agreement FY12 (State Financial)(9 MliAMIBEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division INTERNAL AUDIT REPORT
TO:
VIA
FROM:
DATE:
AUDIT:
PERIOD:
Jimmy L. Morales, City Manager
Kathie G. Brooks, Assistant City Manager
James J. Sutter, Internal Audit~~
April 19, 2013 / .. ., ~
State Beachfront Management Agreement (#3595) Financial Review
October 1, 2011 through September 30, 2012
This audit report is being submitted in compliance with the annual audit reporting requirement of
subparagraph (2) of the original State Beachfront Management Agreement No. 750-0006 dated
February 3, 1982, which was subsequently reassigned No. 3595 by the State Department of
Natural Resources. Furthermore, amendment number 1 was signed on August 9, 2007
extending the original terms for an additional twenty-five years until February 7, 2032.
INTRODUCTION
State Beachfront Management Agreement No. 3595 requires that the City of Miami Beach remit
to the Florida Department of Environmental Protection 25% ("sand tax") of any and all monies
the City collects from private concerns for the use of State beachfront property. There are four
categories of beachfront property users:
• Operators of beachfront concessions seaward of Lummus Park, Ocean Terrace, North
Shore Open Space Park and Pier Park (Boucher Brothers and Penrods Brothers) who
pay for use of the beachfront as per their respective contractual agreements with the
City.
• Miami Beach hoteliers and condominium associations, which pay beach upland fees to
the City on an annual basis, at the same time that they pay their business tax receipt
fees.
• Members of the public who run organized, usually one time only, events on the beach,
such as weddings, volleyball tournaments and corporate affairs. These are called
special events, and payments are remitted to the City's Tourism and Cultural
Development Department.
• Productions requiring to park essential vehicles on the beach or sand areas of Miami
Beach may purchase vehicle beach access passes from the City's Tourism and Cultural
Development Department. The cost of the pass is typically $150 per vehicle per day
(other discounts may apply depending on the date purchased) unless the vehicles do not
move from a specified location for that permitted use, but the first one per day is free.
The following table lists the audited rounded amounts of sand tax collected, due and paid to the s b th th t . f d . th d "t . d tate >Y e ree ca egones o users unng e au 1 peno :
Category Total Revenues 25% Sand Tax Amount Difference
Collected Due Remitted
Beachfront Concessions $929,376 $232,344 $232,344 $0
Hoteliers/Condo Associations $314,543 $78,636 $78,604 $32
Special Events $147,342 $36,835 $36,586 $249
Vehicle Beach Access Passes $144,150 $36,038 $36,488 ($450)
Total $1,535,411 $383,853 $384,022 ($169)
We are committed to providing excellent public service and safely to all who live, work, and play in our vibrant, tropical, historic community.
Internal Audit Report
State Beachfront Management Agreement Financial Review (#3595)
For the Fiscal Year Ending September 30, 2012
April19, 2013
* The City made the following four sand tax payments totaling $384,021.78 to the State of Florida based on
the applicable revenues collected during the 2011/12 fiscal year:
Check Number
325343
329699
333648
338310
OVERALL OPINION
Check Date
01/19/12
04/19/12
07/17/12
10/18/12
Check Amount
$195,627.69
$16,224.89
$100,179.41
$71,989.79
Based upon our examination of City records, it has been determined that during the audit period
of October 1, 2011 through September 30, 2012, the City received a total of $1,535,411 in
revenues subject to the State Beachfront Management Agreement. This figure represents an
increase of $384,622.66 or 33.42% over the fiscal year 2010/11 's total of $1, 150,788.48.
PURPOSE
The purpose of this audit is to determine whether the City complied with State Beachfront
Management Agreement No. 3595 by accurately calculating, timely remitting and properly
recording sand tax monies to the Florida Department of Environmental Protection equal to 25%
of any and all revenues collected from private concerns for the use of State beachfront property.
FINDING AND RECOMMENDATION
Finding: The State of Florida was Inadvertently Overpaid $169.01 in Sand Tax
Internal Audit's testing found that the City remitted $384,021.79 in sand taxes to the State of
Florida which was $169.01 more than the actual amount due of $383,852.78 ($1,535,411.14 x
25%) due to inaccurate general ledger distributions performed on four received payments. See
the attached supporting schedule for revenue details by beachfront property user during the
audit period.
Recommendation(s):
The City's Finance Department has been notified and will deduct $169.01 from their next
quarterly sand tax payment.
JJS:MC:mc
Audit performed by Senior Auditor Mark Coolidge
cc: Patricia Walker, Chief Financial Officer
Georgina Echert, Assistant Finance Director
F:\OBPI\$AUD\INTERNAL AUDIT FILES\DOC12-13\REPORTS-FINAL\BEACHFRONT 2012 STATE RPT.docx
SCHEDULE OF FEES COLLECTED
Page 2 of 5
Internal Audit Report
State Beachfront Management Agreement Financial Review (#3595)
For the Fiscal Year Ending September 30, 2012
April 19, 2013
CONCESSIONAIRE
1500 Ocean Drive Condo Association
2 2201 Collins Fee LLC (VBAs)
3 2201 Collins Fee LLC (Special Events)
4 2201 Collins Fee LLC
5 Act Productions Inc.
6 Accord TV Properties
7 Alexander Hotel
8 Barton G
9 Beach Access Parking
1 o Beach Access Special Events
11 Beta Epsilon/Cadillac LLC
12 Bobby Kapp
13 Broder Productions
14 Boucher Brothers
15 Caribbean Condominium
16 CBS/CSI Miami
17 CBS Eye
18 Cinema!
19 Competitor Group
20 CR Miami LLC
21 Crown
22 Crystal Beach Development
23 Curious Pictures
24 David Segui
25 Days Inn Oceanside
26 Delano Hotel
27 DK the Messenger
28 Doubletree Surfcomber Hotel
29 East Atlantic Gardens Condo
30 Eden Roc Hotel (VBAs)
31 Eden Roc Hotel (Special Event)
32 Eden Roc Hotel
33 Epica
34 Fernwood
35 First Shot Productions
36 Fontainbleau
37 Four Points/Sheraton
38 Gansevoort
39 Go Scout
40 Goryland
41 Grand Beach Hotel
42 GSW Design LLC
43 Harbour Films
44 HG Producer
45 Holiday Inn Miami Beach
46 Holmes Defender
47 II Villaggio Condo Assn.
48 IMG/Action Sports (VBAs)
BEACH FRONT MANAGEMENT AGREEMENT
FISCAL YEAR 11/12
EXHIBIT A
TOTAL FEES*
$2,128.00
$300.00
$400.00
$19,824.00
$7,450.00
$3,250.00
$4,370.00
$5,275.52
$57,525.00
$28,200.00
$4,997.00
$450.00
$1,050.00
$854,353.04
$1,976.00
$150.00
$1,500.00
$2,400.00
$23,325.00
$32,493.00
$6,612.00
$3,192.00
$1,500.00
$450.00
$2,527.00
$7,904.00
$150.00
$2,090.00
$1,900.00
$600.00
$1,500.00
$20,000.00
$75.00
$525.00
$1,050.00
$20,000.00
$3,705.00
$6,346.00
$950.00
$10,000.00
$8,170.00
$4,370.00
$2,166.00
$3,750.00
$4,674.00
$1,200.00
$2,413.00
$600.00
Page 3 of 5
$1,596.00
$225.00
$300.00
$14,868.00
$5,587.50
$2,437.50
$3,277.50
$3,956.64
$43,143.75
$21,150.00
$3,747.75
$337.50
$787.50
$640,764.78
$1,482.00
$112.50
$1 '125.00
$1,800.00
$17,493.75
$24,369.75
$4,959.00
$2,394.00
$1 '125.00
$337.50
$1,895.25
$5,928.00
$112.50
$1,567.50
$1,425.00
$450.00
$1 '125.00
$15,000.00
$56.25
$393.75
$787.50
$15,000.00
$2,778.75
$4,759.50
$687.50
$9,962.50
$6,127.50
$4,295.00
$2,053.50
$2,812.50
$3,505.50
$900.00
$1,809.75
$450.00
25% DUE
STATE
$532.00
$75.00
$100.00
$4,956.00
$1,862.50
$812.50
$1,092.50
$1,318.88
$14,381.25
$7,050,00
$1,249.25
$112.50
$262.50
$213,588.26
$494.00
$37.50
$375.00
$600.00
$5,831 .25
$8,123.25
$1,653.00
$798.00
$375.00
$112.50
$631.75
$1,976.00
$37.50
$522.50
$475.00
$150.00
$375.00
$5,000.00
$18.76
$131.25
$262.50
$5,000.00
$926.25
$1,586.50
$262.50
$37.50
$2,042.50
$75.00
$112.50
$937.50
$1 '168.50
$300.00
$603.25
$150.00
REMITTED
TO STATE
$532.00
$75.00
$100.00
$4,956.00
$1,862.50
$812.50
$1,092.50
$1,097.50
$14,381.25
$7,050.00
$1,249.25
$112.50
$262,50
$213,588.26
$494.00
$37.50
$375.00
$600.00
$5,831.25
$8,123.25
$1,653.00
$798.00
$375.00
$112.50
$631.75
$1,976.00
$37.50
$522.50
$475.00
$150.00
$375.00
$5,000.00
$18.75
$131.25
$562.50
$5,000.00
$926.25
$1,586.50
$262.50
$37.50
$2,042.50
$75.00
$112.50
$937.50
$1 '168.50
$300.00
$571.50
$150.00
OWED
TO STATE
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$221.38
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
($300.00)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$31.75
$0.00
Internal Audit Report
State Beachfront Management Agreement Financial Review (#3595)
For the Fiscal Year Ending September 30, 2012
April 19, 2013
49 IMG/Action Sports
50 Karla Events (VBAs)
51 Karla Events
52 Katrina's/The Bath Club (Special Event)
53 Katrina's/The Bath Club
54 King Richard Condominium
55 Kurt Gardener Photos
56 Loew's Hotel
57 Logistics Management Group (VBAs)
58 Logistics Management Group
59 Marriott Fairfield Inn
60 Marseille Hotel
61 MDGLCC Foundation, Inc.
62 MESP, Inc. (VBAs)
63 MESP, Inc.
64 Miami Beach Marriott
65 Miami World Cinema
66 MM Productions
67 National Marine Manufacturers, Inc.
68 Nautilus Club
69 North Carillon Beach Condo
70 Palms South Beach
71 Penrod Brothers (VBAs)
72 Penrod Brothers (Beach Concessions)
73 Penrod Brothers (Special Events)
74 Picture Perfect
75 Polo Life LLC
76 Pop Miami
77 Pro One
78 Quality Inn
79 Radical Miami
80 Radisson Deauville
81 Richmond Hotel
82 Ritz Carlton
83 Ritz Plaza
84 Riutel Florida
85 Robot Films
86 Route 7
87 Rum Bum
88 Sagamore Hotel (VBAs)
89 Sagamore Hotel
90 Seagull Hotel
91 Select Services
92 Shelborne Beach Resort
93 Shoot Collective
94 Six Degrees Productions
95 Soho House Beach House LLC (VBAs)
96 Soho House Beach House LLC (Special Event)
97 Soho House Beach House LLC
98 South Beach Tow
99 South Carillon Beach Condo
100 South of Fifth Condo Association
101 Spike Productions
102 Starz
103 Stonehenge
$1,865.00
$300.00
$1,590.00
$1 '125.00
$2,166.00
$1,040.02
$150.00
$20,000.00
$12,450.00
$29,975.44
$3,876.00
$4,294.00
$1,484.12
$900.00
$8,400.00
$4,484.00
$600.00
$1,050.00
$10,937.48
$4,769.00
($1 ,734.00)
$9,348.00
$1,200.00
$35,428.32
$21,000.00
$1,200.00
$24,675.00
$150.00
$300.00
$4,180.00
$900.00
$30,240.00
$2,033.00
$7,144.00
$4,884.00
$5,396.00
$150.00
$1,650.00
$300.00
$300.00
$3,496.00
$2,774.00
$3,825.00
$4,826.00
$600.00
$300.00
$450.00
$650.00
$950.00
$825.00
($1 ,462.00)
$1,064.00
$300.00
$1,050.00
$1,500.00
Page 4 of 5
$1,398.75
$225.00
$1 '192.50
$843.75
$1,624.50
$780.01
$112.50
$15,000.00
$9,337.50
$22,481.58
$2,907.00
$3,220.50
$1,113.09
$675.00
$6,300.00
$3,363.00
$450.00
$787.50
$8,203.11
$3,576.75
($1 ,300.50)
$7,011.00
$900.00
$26,571.24
$15,750.00
$900.00
$18,506.25
$112.50
$225.00
$3,135.00
$675.00
$22,745.00
$1,524.75
$5,358.00
$3,663.00
$4,047.00
$112.50
$1,237.50
$225.00
$225.00
$2,622.00
$2,080.50
$2,868.75
$3,619.50
$450.00
$225.00
$337.50
$487.50
$712.50
$618.75
($1 ,096.50)
$798.00
$225.00
$787.50
$1,125.00
$466.25
$75.00
$397.50
$281.25
$541.50
$260.00
$37.50
$5,000.00
$3,112.50
$7,493.86
$969.00
$1,073.50
$371.03
$225.00
$2,100.00
$1,121.00
$150.00
$262.50
$2,734.37
$1 '192.25
($433.50)
$2,337.00
$300,00
$8,857.08
$5,250.00
$300.00
$6,168.75
$37.50
$75.00
$1,045.00
$225.00
$7,495.00
$508.25
$1,786.00
$1,221.00
$1,349.00
$37.50
$412.50
$75.00
$75.00
$874.00
$693.50
$956.25
$1,206.50
$150.00
$75.00
$112.50
$162.50
$237.50
$206.25
($365.50)
$266.00
$75.00
$262.50
$375.00
$466.25
$75.00
$397.50
$281.25
$541.50
$260.00
$37.50
$5,000.00
$3,112.50
$7,424.41
$969.00
$1,073.50
$350.00
$225.00
$2,100.00
$1,121.00
$150.00
$262.50
$2,734.37
$1 '192.25
($433.50)
$2,337.00
$300.00
$8,857.08
$5,250.00
$300,00
$6,168.75
$37.50
$75.00
$1,045.00
$225.00
$7,495.00
$508.25
$1,786.00
$1,221.00
$1,349.00
$37.50
$412.50
$75.00
$75.00
$874.00
$693.50
$1 '1 06.25
$1,206.50
$150.00
$75.00
$112.50
$162.50
$237.50
$206.25
($365.50)
$266.00
$75.00
$262.50
$375.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$69.45
$0.00
$0.00
$21.03
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0,00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
($150.00)
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Internal Audit Report
State Beachfront Management Agreement Financial Review (#3595)
For the Fiscal Year Ending September 30, 2012
April19, 2013
104 The Bentley Beach $4,142.00 $3,106.50 $1,035.50 $1,035.50 $0.00
105 The Michael Alan Group $560.76 $420.57 $140.19 $140.19 $0.00
106 The National Hotel $6,080.00 $4,560.00 $1,520.00 $1,520.00 $0.00
107 The Raleigh Hotel $8,436.00 $6,327.00 $2,109.00 $2,109.00 $0.00
108 The Production Factory $150.00 $112.50 $37.50 $37.50 $0.00
109 The Savoy on South Beach $1,273.00 $954.75 $318.25 $318.25 $0.00
110 The Setai Resort and Condo $10,146.00 $7,609.50 $2,536.50 $2,536.50 $0.00
111 The Shore Club Hotei/Philips $12,350.00 $9,262.50 $3,087.50 $3,087.50 $0.00
112 Tim Wilcox, Inc. $39,594.92 $29,696.19 $9,898.73 $9,898.73 $0.00
113 TVM Productions $6,000.00 $4,500.00 $1,500.00 $1,500.00 $0.00
114 Univision $225.00 $168.75 $56.25 $56.25 $0.00
115 US Road Sports & Entertainment (VBAs) $1,500.00 $1,125.00 $375.00 $375.00 $0.00
116 US Road Sports & Entertainment $3,578.52 $2,683.89 $894.63 $957.25 ($62.62)
117 Vendome Place Condominium $1,539.00 $1 '154.25 $384.75 $384.75 $0.00
118 Westgate Resort $1,748.00 $1,311.00 $437.00 $437.00 $0.00
119 Winter Music Conference (VBAs) $300.00 $225.00 $75.00 $75.00 $0.00
120 Winter Music Conference $2,400.00 $1,800.00 $600.00 $600.00 $0.00
Total $1,551,207.14 $1,167,354.35 $383,852.78 $384,021.79 ($169.01)
*Excludes sales tax
Page 5 of 5