LTC 317-2021 External Auditor's (RSM US LLP) Annual Audit Report on the City of Miami Beach (the City) for the period ended September 30, 2020MIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC# 317-2021 LETT ER TO COMMISSION
TO:
FROM :
Mayor Dan Gelber and Members of the City Commission
Alina T. Hudak, City Manager f1;:. ¥-.for
July 30, 2021 DATE:
SUBJECT: External Auditor's (RSM US LLP) Annual Audit Report on the City of Miami Beach (the
City) for the period ended September 30, 2020
The following reports are currently available at https://www.miamibeachfl.gov/city-
hall/finance/financial-documents/
A. Comprehensive Annual Financial Report for the fiscal year ended September 30, 2020, which
includes an unmodified (clean) audit opinion
B. Audit Report for fiscal year ended September 30, 2020 which includes:
• Comprehensive Annual 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) for the fiscal year ended September 30, 2020,
which includes an unmodified (clean) audit opinion
Enclosed, for your information, are the following documents:
A. The Auditor's letter to the Mayor and Members of the City Commission which includes 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
If you have any questions or need additional information, please feel free to contact Allison R. Williams
at 305-673-7 466.
ATH/~g / fM'
/
City of Miami Beach,
Florida
Report to the Honorable Mayor and Members of the
City Commission
July 23, 2021
THE POWER OF BEING UND ERSTO OD
AUDIT I TAX I CONSULT IN G
·-RS~JI
July 23 , 2021
Honorable Mayor and Members of the City Commission
The City of M iami Beach, Florida
1700 Convention Center Drive , 4 th Floor
Miami Beach, FL 33139
Attention : Honorable Mayor and Members of the City Commission:
·-RS~/1
RSM USLLP
801 Brickel l Avenue
Suite 1050
Miami, FL 33131
T +1 305 442 8801
F +1 305 442 7478
www.1·smus.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 , 2020 . In connection
therewith, we have also issued a separate report on internal control over financial reporting and on
compliance and other matters, a report on compliance for each major federal program, a management
letter in accordance with the rules the Florida Auditor General , and an attestation report on compliance
with Chapter 10 .550, Rules of the Auditor General of the State of Florida, relating to the City 's compliance
with Section 218 .415, Florida Statutes, Local Government Investment Policies, a report for the Parking
System Enterprise Fund , a report for the Miami Beach Redevelopment Agency and a report on the
Children's Trust Contracts . 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 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 be of service to the City .
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX I CONSULT ING
f~SM US LLP I~ tlw U.S t11C'rn!1c1 firm of HSM hilC'! 11,1lirni.1I. ,1 glol,cil rwlwor k of i1uh.:-1wride11t 111lht. t ,1, . .:u1cl consulting nrins. Vi 1;il r<.,Inus co111/ .1 IJOllt11 ~, for rnoIt• inforin..illon rcg,1rding RSM U5 LLP ,111c1
RSM lntcrn,1tiorwl
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 -3
4-5
6
7
REQUIRED COMMUNICATIONS
Generally accepted auditing standards (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 financial statement audit as well as observations arising from our audit that
are significant and relevant to your responsibility to oversee the financial reporting process.
Our Responsibilities With Regard to the Financial Statement Audit
Our responsibilities under auditing standards generally accepted in the United States of America have
been described to you in our arrangement letter dated October 7 , 2020 and audit services agreement
dated August 8, 2019. Our audit of the 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 October 7, 2020 regarding the planned scope and
timing of our audit and identified significant risks .
Accounting Policies and Practices
Preferability of Accounting Policies and Practices
Under generally accepted accounting principles, 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
City. The City adopted the recognition and disclosure requirements of GASB Statement No.95 in fiscal
2020. The GASB issued Statement No . 95 to provide temporary relief to governments and other
stakeholders affected by the Covid -19 Pandemic . This Statement postpones the effective dates of certain
provisions in Statements and Implementation Guides that first became effective or are scheduled to
become effective for periods beginning after June 15, 2018 and later.
There were no other new significant accounting policies, nor have there been any significant changes in
existing 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.
Basis of Accounting
The basic financial statements were prepared on the assumption that the City will continue as a going
concern.
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.
Other Information in Documents Containing Audited Financial Statements
Our responsibility for other information in documents containing the City's audited basic financial
statements is to read the information and consider whether its content or manner of its presentation is
materially inconsistent with the financial information covered by our auditor's report or whether it contains
a material misstatement of fact. We read the introductory section, statistical section and combining fund
financial statements and schedules which are presented for purposes of additional analysis and are not a
required part of the basic financial statements. We did not identify material inconsistencies with the
audited basic 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
Self-Insurance worker's compensation claims
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 eliminate an excess reserve provided by the actuary based
on data that was altered to a different reserve method, which was not consistent with past practices.
Overstated accounts receivable (Only RDA Standalone)
A material audit adjustment was made to the financial statements to decrease the redevelopment agency
(RDA) leasing fund accounts receivable balance and increase the due from primary government and
unearned revenues balances.
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.
2
Significant Difficulties Encountered in Performing the Audit
With the exception of working in a fully virtual environment due to the pandemic, and the issue noted
above involving workers compensation claims determined by the actuary, we did not encounter any
significant difficulties in dealing with management during the audit.
Internal Control Matters
We issued, under separate cover, the following reports in connection with our audit, as required by
Government Auditing Standards, 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
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.
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, 2020
basic financial statements.
Significant Accounting Estimates
Accounting for Self-Insurance Liabilities
Accounting policy
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
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.
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
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 .
4
Significant Accounting Estimates
Depreciation of Capital Asset
Accounting policy
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
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.
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
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
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 with input from its OPES 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.
Parking Fund Opinion Unit
Description
Current year misstatements:
To record the deferred loss of the
Parking Series 201 0A/8 bonds
refunding at 9/30/20.
Effect-Debit (Credit)
Asset Liabilities Net Position Revenue
466,309
Statement of activities effect (466,309)
Statement of financial position effect $466,309 $ $ =======================
Effect-Debit (Credit)
Expense
(466,309)
(466,309)
RDA Leasing Fund Opinion Unit
Description
Current year misstatements:
Asset Liabilities Net Position Revenue Expense
To properly state accounts receivable,
due to primary government, and
unearned revenue balances. $
Statement of activities effect
Statement of financial position effect $
4,781 $ (4,781) $
4,781 $ (4,781)
* within this entry is a $688,017 reclass between two asset categories .
6
$ $
UNCORRECTED MISSTATEMENTS
We identified the following uncorrected misstatements that management has concluded are not,
individually or in the aggregate, material to the financial statements. We agree with management's
conclusion in that regard.
Government -Wide Opinion Unit Effect-Debit (Credit)
Descrietion Asset Liabilities Net Position Revenue
Current year misstatements :
To adjust the net OPEB liablity if updated
mortality tables were used for government
wide . 3,598,113 3,598,113
Statement of activities effect (3,598 ,113)
Statement of financial position effect $ $3,598,113 $
Parking Fund Opinion Unit Effect-Debit (Credit)
Descrietion Asset Liabilities Net Position Revenue
Current year misstatements:
To adjust the net OPEB liablity if updated
mortality tables were used for the parking
fund. $ $ 82,320 $ 82,320 $
Statement of activities effect (82,320)
Statement of financial position effect $ $ 82,320 $
7
Exeense
(3,598,113)
(3,598,113)
Exeense
$ (82 ,320)
(82,320)
EXHIBIT A
Internal Control Matters
IC 2020-001 ACFR -Worker's Compensation Liability -Significant Deficiency
Criteria: Internal control policies and procedures should provide reasonable assurance regarding the
reliability of the financial reporting process, including the selection and application of significant
assumptions used in the accurate recording and disclosure of accounting transactions.
Condition: 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 eliminate an excess reserve provided
by the actuary based on data that was altered to a different reserve method , which was not consistent
with past practices .
Context: The condition is an isolated incident relating to the WC liability, which is actuarially determined .
Cau se: Although the City relies on the third party administrator and the actuary to provide the estimation
process, the City is obligated to timely review the information and ensure the accuracy of all inputs used
in the calculation . The City identified the changes to the reserves in the third quarter, but was not able to
have the reserves adjusted before the audit process.
Effect: The WC liability as of 9/30/2020 was overstated within the actuarial report and the data needed to
correct the analysis was not available from the third -party administrator. As a result , management had to
generate a revised alternate analysis focused solely on the WC paid loss development data and
expanded the scope of the audit to include limited independent testing of the reasonableness of the
estimated liability for self-insured risks related to WC claims .
Recommendation: We recommend that management establish a process to review all actuarial
assumptions and changes in assumptions or methods on a timely basis before they have the actuarial
valuation prepared . Also recommended is that management review the draft results to identify potential
errors or anomalies requiring further attention . Additional procedures should also be put in place to
monitor any changes applied by the third party administrator to their policies and procedures regarding
processing of claims reserves on behalf of the City . The final report should also be reviewed as part of the
reconciliation process for consistency and reasonableness .
Views of Responsible Officials and Planned Corrective Action: Management currently has in place a
quarterly review of WC data that is provided to the actuary for analysis. Management will review the
established internal controls , particularly those related to data received by the WC third-party
administrator , review the actuarial report and assumptions used in detail before accepting the final
actuarial report.
Additional controls in place include the continuous review of reserve levels for WC claim files that are
managed by the third party -administrator. Management will confirm at its annual third -party
administrator's utilization review meeting that the City's reserve philosophy is being used correctly by all
adjusters.
2020 -001 RDA Leasing Fund -Accounts Receivable -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: A material audit adjustment was made to the financial statements to decrease the
redevelopment agency (RDA) leasing fund accounts receivable balance and increase the due from
primary government and unearned revenues balances .
Context: The condition is an isolated incident related only impacting the subledger of the RDA leasing
fund.
Cause: The City's obligation to review the subledgers within the general ledger system and to ensure the
accuracy of the funds' balances did not occur.
Effect: Accounts Receivable as of 9/30/2020 was overstated by $695 ,501 in the RDA leasing fund and
the Primary Government's general fund .
Recommendation: We recommend that the management review process identify and resolve all
variances between the subledger and the general ledger on a periodic basis, annually, at a minimum .
Views of Responsible Officials and Planned Corrective Action: Due to system limitations, all
payments or adjustments to historical/converted receivable subledger balances must be manually
recorded in the general ledger . The subledger and general ledger accounts receivable fund balances will
be reviewed and any variances will be resolved quarterly .
EXHIBIT B
Significant Written Communications Between
Management and Our Firm
M IAMI BEACH
City of M ia mi Be ac h, 1700 Convent ion Center Drive , M iomi Beach, Florida 33139, www miamibeachfl .gQY
May 27 . 2021
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 as of and for the year ended September 30. 2020 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 May 27 , 2021 .
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
October 7, 2020 and 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
controls 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 interna l
controls 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 component units for which the City is accountable.
other organizations for which the nature and significance of their relationship 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. leas ing 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 U .S. GAAP .
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.
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 .
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Page 2 of 5
9. There are no unasserted claims or assessments that our lawyers have advised us are probable of
assertion and must be disclosed in accordance with GASS Statement No.10 and 62 beyond those
accounted for in the City's risk retention estimated liabilities.
10 . We have no direct or indirect legal or moral obligation for any debt of any organization, public or
private, or to special assessment bondholders, that is not disclosed in the financial statements.
11. 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 .
12. We have informed you of all uncorrected misstatements . As of and for the year ended September 30,
2020 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.
Government . Wide Opinion Unit
Description
Current year misstatements :
To adjust the net OPEB liablity if updated
mortality table s were used for government
wide .
Statement of activities effect
Statement of financial position effect
Parking Fund Opinion Unit
Description
Current year misstatements :
To adjust the net OPEB liablity if updated
mortality tables were used for the parking
fund .
Statement of activities effect
Statement of financial position effect
Asset
$
Asset
$
$
Effect-Debit (Credit)
Liabilities Net Position Revenue
3,598 ,113
$ 3,598,113 $
3,598 ,113
(3,598, 113)
Effect-Debit (Credit)
Liabilities Net Position
$ 82 ,32 0 $ 82 ,320 $
(82,3 20)
$ 82 ,32 0 $
Revenue
Expense
(3,598 ,113)
(3 ,598,113)
Expense
$ (82 ,320)
(82,320)
13 . We agree with the findings of specialists in evaluating our self-insurance program, the total
OPEB and related OPEB amounts, the pension plans net pension liability and related pension
amounts , and our arbitrage rebate liability 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 or cause any instructions to be given to
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 specialists.
14. 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.
~
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Page 3 of 5
Information Provided
15 . 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 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 .
16 . All transactions have been recorded in the accounting records and are reflected in the financial
statements .
17 . 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.
18 . It is our responsibility to establish and maintain internal controls over financial reporting . One of the
components of internal controls 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 .
19 . We have no knowledge of allegations of fraud or suspected fraud affecting the City'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 financial statements .
20. We have no knowledge of any allegations of fraud or suspected fraud affecting the City's financial
statements received in communications from employees, former employees, analysts, regulators ,
short sellers or others .
21 . We have no knowledge of noncompliance or suspected noncompliance with laws and regulations .
22 . We have disclosed to you all known actual or possible litigation and claims whose effects should be
considered when preparing the financial statements.
23 . We have disclosed to you the identity of the City's related parties and all the related-party
relationships and transactions of which we are aware .
24 . 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 .
25 . There have been no communications from regulatory agencies concerning noncompliance with, or "J
deficiencies in , financial reporting practices . \~
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Page 4 of 5
26 . 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
27 . With respect to supplementary information presented in relation to the 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 financial statements, we will
make the audited 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 .
28 . With respect to Requi red Supplementary Information presented as required by the Governmental
Accounting Standards to supplement the basic 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 .
29 . Management has assessed the financial condition of the City of Miami Beach and noted no
deteriorating financial condition .
Compliance Considerations
In connection with your audit , conducted in accordance with Government Auditing Standards , we confirm
that management:
30 . Is responsible for the preparation and fair presentation of the financial statements in accordance with
the applicable financial reporting framework .
31 . Is responsible for compliance with the laws, regulations , and provisions of contracts and grant
agreements applicable to the C ity of Miami Beach.
32 . 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 .
33 . 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 .
34 . 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 l"'-1
statements . \ \'\'
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35. Is responsible for the design, implementation and maintenance of internal controls relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
36. Acknowledges its responsibility for the design, implementation and maintenance of internal controls to
prevent and detect fraud.
37 . 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.
38. Has a process to track the status of audit findings and recommendations.
39 . Has identified for the auditor previous audits, attestation engagements, or other studies related to the
audit objectives and whether related recommendations have been implemented .
40 . 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.
The City of Miami Beach, Florida
~LJ#Jc ~
· y Manager
John
Chief M!l'
Alhson Wimams ~
Deputy Finance Director
MIAMI BEAC H
City of Miami Be a ch, 1700 Convention Ce nte r Drive , Miami Beac h, Florido 3313 9 , www .miomibea chfl.gQY
May 27, 2021
RSM US, LLP
801 Brickell Avenue
Suite 1050
Miami , FL 33131
In connection with your examination of the City of Miami Beach's (the City) compliance with Section
218.415 Florida Statutes, Local Government Investment Policies (the Statute) during the year ended
September 30, 2020 , in accordance with attestation standards established by the American Institute of
Certified Public Accountants , we confirm, to the best of our knowledge and belief, the following
representations made to you during the course of your engagement:
1. We understand that we are responsible for the City's compliance with the Statute and the selection of
the criteria against which compliance is being evaluated.
2. The criteria is Section 218.415, Florida Statutes, Local Government Investment Policies.
3. We understand that we are responsible for determining that such criteria are appropriate for our
purposes.
4. We are responsible for establishing and maintaining effective internal controls over the City's
compliance with the Statute.
5. We have performed an evaluation of the City's compliance with the Statute. Based on our evaluation ,
the City has complied with the Statute during the year ended September 30 , 2020 .
6 . There are no known matters contradicting the assertion nor any communication from regulatory
agencies affecting the City's possible noncompliance with the Statute received by us during the year
ended September 30, 2020 or through the date of this letter .
7. We have made available to you all records relevant to the City 's compliance with the Statute.
8 . No events or transactions have occurred subsequent to September 30 , 2020 or through the date of
this letter.
9. There has been no knowledge of fraud or suspected fraud affecting the entity 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 Statute.
RSM US LLP
Page 2 of 2
10. 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.
11. We have responded fully to all inquiries made to us by you during your engagement.
12 . 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,
~;:;_mioo ace oo looge, oeeded by us.
~~ / Manager
John Wo
Allison Williams
Deputy Finance Director
MIAMI BEACH
City of Miami Beach, 1700 Convention Cen ter Drive , M iomi Beac h, Flo rido 33139, :filYW.sn~_clill,gov
June 25 , 2021
RSM US, LLP
801 Brickell Avenue , Suite 1050
Miami , FL 33131
Compliance Considerations
In connection with your audit of federal awards and state projects conducted in accordance with
Subpart F of Title 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 , 2020 for the City of Miami Beach ,
Florida , we confirm that management:
1. Is responsible for complying and we have complied w ith the requirements of Uniform Guidance
and Chapter 10 .550, Rules of the Auditor General , State of Florida .
2. Is responsible for compliance with the laws, regulations and provisions of contracts and grant
agreements related to each of our federal programs and state projects .
3 . Is aware of 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 .
4 . Has identified and disclosed all of our government programs and related activities subject to the
Uniform Guidance, Federal Single Audit Act and Florida Single Audit Act.
5 . Has made available all federal awards and state projects (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 .
6 . Is aware of no instances that have occurred, or are likely to have occurred , of noncompliance with
the direct and material compliance requ irements of federal and state awards , when applicable .
7 . Believes that we have complied with the direct and material compliance requirements in
accordance w ith Uniform Guidance and Chapter 10 .550 Rules of the Auditor General of the State
of Florida for the year ended September 30, 2020 with provisions of contracts and grant
agreements that have a material effect on the determination of financial statement amounts .
8 . Is aware of no instances that have occurred, or are likely to have occurred, of waste or abuse that
could be quantitatively or qualitatively material to the financial statements .
9 . Is responsible for the design , implementation and maintenance of internal controls relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
RSM US, LLP
Pg. 2
10. Acknowledges its responsibility for the design, implementation and maintenance of internal
controls to prevent and detect fraud.
11. Has a process to track the status of audit findings and recommendations. Has provided views on
the auditor's reported findings, conclusions and recommendations, as well as management's
planned corrective actions, for the report.
12. Management is responsible for complying, and has complied, with the requirements of Uniform
Guidance and Chapter 10.550, Rules of the Auditor General, State of Florida.
13 . Management is responsible for understanding and complying with the requirements of laws,
regulations, and the provisions of contracts and grant agreements related to each of our federal
programs and state projects.
14 . Management is responsible for establishing and maintaining, and has established and
maintained, effective internal controls over compliance for federal programs and state projects
that provides reasonable assurance that the auditee is managing federal and state awards in
compliance with federal and state statutes, regulations, and the terms and conditions of the
federal and state awards that could have a material effect on its federal programs and state
projects.
15 . Management is responsible for the preparation of the schedule of expenditures of federal and
state awards, acknowledges and understands its responsibility for the presentation of the
schedule of expenditures of federal and state awards in accordance with the Uniform Guidance;
believes the schedule of expenditures of federal awards, including its form and content, is fairly
presented in accordance with the Uniform Guidance and Chapter 10.550; asserts that methods of
measurement or presentation 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 communicated; and is responsible for any significant assumptions or interpretations
underlying the measurement or presentation of the schedule of expenditures of federal and state
awards.
16. Management will make the audited financial statements readily available to the intended users of
the schedule no later than the issuance date by the entity of the schedule of expenditures of
federal and state awards and the auditor's report thereon.
17. 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.
18 . Management has made available all federal and state awards (including amendments, if any) and
any other correspondence relevant to federal and state programs and related activities that have
taken place with federal and state agencies or pass-through entities.
19. Management has identified and disclosed to the auditor all amounts questioned and all known
noncompliance with the direct and material compliance requirements of federal and state awards
or stated that there was no such noncompliance.
20 . Management believes that the auditee has complied with the direct and material compliance
requirements, in accordance with Uniform Guidance and Chapter 10 .550 for the year ended
September 30, 2020.
21. Management has made available all documentation related to compliance with the direct and
material compliance requirements, including information related to federal program and state
project financial reports and claims for advances and reimbursements.
RSM US, LLP
Pg.3
22. Management has provided to the auditor its interpretations of any compliance requirements that
are subject to varying interpretations.
23 . Management has disclosed to the auditor any 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.
24. 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 .
25 . 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, includ ing all
management decisions.
26 . 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 reporting period .
27. 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.
28. Management has disclosed whether any changes in internal controls over compliance or other
factors that might significantly affect internal controls, including any corrective action taken by
management with regard to significant deficiencies and material weaknesses in internal controls
over compliance, have occurred subsequent to the period covered by the auditor's report .
29. Federal program and state project financial reports and claims for advances and reimbursements
are supported by the books and records from which the basic financial statements have been
prepared.
30 . 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 .
31. If applicable, management has monitored subrecipients 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 and Chapter 10 .550 .
32 . Management has charged costs to federal and state awards in accordance with applicable cost
principles .
33. 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 .
34 . The reporting package does not contain protected personally identifiable information.
35. Management has accurately completed the appropriate sections of the data collection form .
RSM US, LLP
Pg .4
The City of Miami Beach, Florida
a ~~:_-r ld ,dtvl c_
Alina T . Hudak 7
City Manager
fo/JJ,'
Allison WilHams h
Deputy Finance Director
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive , M iami Beac h, Florida 33139 , w_'f.ffl.,JJl.iQmjhJ,1QC.bJl ,g gy
July 8, 2021
RSM US , LLP
801 Brickell Avenue , Suite 1050
Miami , FL 33131
This representation letter is provided in connection with your audit of the financial statements of the Parking
System Enterprise Fund (the Fund) of the City of Miami Beach , Florida (the City), as of and for the year
ended September 30, 2020 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 belief, that as of July 8, 2021 .
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
October 7, 2020 and 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. GMP.
2. We acknowledge our responsibility for the design , implementation and maintenance of internal
controls 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
controls 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 component units for which the Fund is accountable,
other organizations for which the nature and significance of their relationship with the Fund 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 U.S. GAAP.
6 . All events subsequent to the date of the financial statements, and for which U.S. GMP requires
adjustment or disclosure, have been adjusted or disclosed.
7. The effects of all known actual or possible and claims have been accounted for and disclosed in
accordance with U.S . GAAP .
RSM US LLP
July 8 , 2021
Page 2 of 6
8. There are no unasserted claims or assessments that our lawyers have advised us are probable of
assertion and must be disclosed in accordance with GASB Statement No .10 and 62 beyond
those accounted for in the Fund 's risk retention estimated liabilities.
9 . We have no direct or indirect legal or moral obligation for any debt of any organization , public or
private , or to special assessment bondholders which is not disclosed in the financial statements .
10 . We have complied with all aspects of contractual agreements that would have a material effect on
the financial statements in the event of noncompl iance.
11. We have informed you of all uncorrected misstatements. As of and for the year ended September
30 , 2020 we believe that the effects of the uncorrected miss tatements aggregated by you and
summarized below are immaterial , both individually and in the aggregate , to the opinion unit of the
financial statements . For purposes of this representation , we con s ider items to be material ,
regardless of their size , if they involve the misstatement or omiss ion of accounting information that ,
in light of surrounding circumstances , makes it probable tha t the judgment of a reasonable person
relying on the information would be changed or influenced by the omission or misstatement.
Parking Fund Opinion Un it
Descripti on Asset
Cu rrent year misstatements :
To adj ust th e net OP ES liab lity if updated
morta lity table s we re use d for the parking
f und . $
Sta tement of ac tivit ies effect
Stat ement of fin ancial posi tion effect $
Liabilities
$ 82 ,320
$ 82 ,320
Effect-Debit (C red it )
Net Position Reve nue Expense
$ 82.320 $ $ (82 ,320)
(82 ,32 0) (82 ,320)
$
12 . We agree with the findings of specialists in evaluating our self-insurance program, th e total
OP E B and related OPEB amounts , the pension plans net pen s ion liabil ity and related pension
amounts , and have adequately cons idered the qualifications of the specialists in determining
the amounts and disclosures used in the financial statements and underlying accounting
records . We did not give o r cause any instructions to be given to 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 specialists .
13 . We believe that the actuarial assumptions and methods used to measure the C ity 's OPEB and
pension liabilit ies and related costs for financial accounting purposes are appropriate in t he
circumstances .
14 . With respect to the assistance with pr inting and binding the financial statements performed in the
course of the audit:
a . We have made all management decisions and performed all management functions ;
b . We assigned an app ropriate individual to oversee the services;
c . We evaluated the adequacy and results of the services performed , and made an informed
judgment on the results of th e services performed ;
d . We have accepted responsibility for the results of the services ; a nd
e . We have accepted responsibility for all significant judgments and decisions that were
made .
RSM US LLP
July 8, 2021
Page 3 of 6
Information Provided
15. 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 Fund from whom you determined it necessary
to obtain audit evidence; and
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 .
16. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
17 . 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 .
18 . It is our responsibility to establish and maintain internal controls over financial reporting . One of the
components of internal controls 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 .
19. We have no knowledge of allegations of fraud or suspected fraud affecting the Fund 's financial
statements involving:
a. Management.
b. Employees who have significant roles in internal controls .
c . Others where the fraud could have a material effect on the financial statements.
20 . 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 .
21 . We have no knowledge of noncompliance or suspected noncompliance with laws and regulations.
22 . We have disclosed to you all known actual or possible litigation and claims whose effects should
be considered when preparing the financial statements .
23 . We have disclosed to you the identity of the Fund 's related parties and all the related -party
relationships and transactions of which we are aware .
24 . We are aware of no significant deficiencies , including material weaknesses, in the design or
operation of internal controls that could adversely affect the Fund's ability to record, process,
summari ze and report financial data .
RSM US LLP
July 8, 2021
Page 4 of 6
25 . There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
26. 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
27. With respect to supplementary information presented in relation to the 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 . GMP.
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 financial
statements, we will make the audited 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 .
28 . With respect to the Required Supplementary Information presented as required by the
Governmental Accounting Standards Board to supplement the basic 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 .
29 . Management has assessed the financial condition of the Fund and noted no deteriorating financial
condition .
30. The Fund is not in a state of emergency based upon the conditions described in Section 218 .503(1 ),
Florida Statutes .
RSM US LLP
July 8, 2021
Page 5 of 6
Compliance Considerations
In connection with your audit, conducted in accordance with Government Auditing Standards, we confirm
that management:
31. Is responsible for the preparation and fair presentation of the financial statements in accordance
with the applicable financial reporting framework .
32. Is responsible with the laws, regulations, and provisions of contracts and grant agreements
applicable to the Fund .
33. 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 .
34 . 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.
35 . 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 .
36 . Is responsible for the design , implementation and maintenance of internal controls relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
37 . Acknowledges its responsibility for the design, implementation and maintenance of internal
controls to prevent and detect fraud.
38. 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 .
39 . Has a process to track the status of audit findings and recommendations.
40. Has identified for the auditor previous audits, attestation engagements, or other studies related to
the audit objectives and whether related recommendations have been implemented.
41. 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.
RSM US LLP
July 8, 2021
Page 6 of6
The City of Miami Beach, Florida
AlinaaJtr~T citJJ __
City1Manager
Allison Williams
Deputy Finance Director
MIAM I BEACH
City of M iami Beac h, 1700 Co nv enti o n Center Dr ive, M iam i Beac h, Florida 33139, www.miam ibeachfl.gQY
FINANCE DEPAR TME NT
July 23, 2021
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
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 , 2020 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 Statemen ts
1. We have fulfilled our responsibilities , as set out in the terms of the audit arrangement letter dated
October 7, 2020, and 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 . GMP.
2 . We acknowledge our responsibility for the des ign, implementation and maintenance of internal
controls relevant to the preparation and fa ir 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 internal
controls 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 exper ience
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 component units for which the Agency is
accountable, 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 , 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 U.S . GMP.
6 . The financial statements properly cla ssify all funds and activities in accordance with GASB
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, as
amended.
RSM US LLP
July 23, 2021
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. There are no unasserted claims or assessments that our lawyers have advised us are probable of
assertion and must be disclosed in accordance with GASB Statement No .10 and 62.
10. We have no direct or indirect legal or moral obligation for any debt of any organi zation, public or
private, or to special assessment bondholders which is not disclosed in the financial statements.
11 . We have complied with all aspects of contractual agreements that would have a material effect on
the financial statements in the event of noncompliance.
12 . As of and for the year ended September 30, 2020 , there were no uncorrected misstatements
aggregated by you that should be considered in the final amounts reported in 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.
13. We agree with the findings of specialists in evalu ating our self-insurance program, the total
OPEB and related OPEB amounts, arbitrage rebate liabilities, the pension plans net pension
liability and related pension amounts 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 or cause any instructions to be given to
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 specialists.
14. 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 .
15. With respect to drafting the financial statement services performed in the course of the audit:
a. We have made all management decisions and performed all management functions;
b. We assigned an appropriate individual to oversee the services;
c. We evaluated the adequacy and results of the services performed, and made an
informed judgment on the results of the services performed;
d . We have accepted responsibility for the results of the services; and
e. We have accepted responsibility for all significant judgments and decisions that were
made.
RSM US LLP
July 23, 2021
Page 3
Information Provided
16. 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 Agency from whom you determined it
necessary to obtain audit evidence; and
d . Minutes of the meetings of the governing board and committees, or summa r ies of actions
of recent meetings fo r which minutes have not yet been prepared .
17 . All transactions have been recorded in the accounting records and are reflected in the financial
statements.
18. 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.
19. It is our responsibility to establish and maintain internal controls over financial reporting. One of
the components of internal controls 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.
20. We have no knowledge of allegations of fraud or suspected fraud affecting the Agency's financial
statements involving:
a. Management.
b. Employees who have significant roles in internal controls.
c. Others where the fraud could have a material effect on the financial statements.
21. We have no knowledge of any allegations of fraud or suspected fraud affecting the Agency's
financial statements received in communications from employees, former employees, analysts,
regulators, short sellers or others .
22. We have no knowledge of noncompliance or suspected noncompliance with laws and
regulations.
23. We have disclosed to you all known actual or possible litigation and claims whose effects should
be considered when preparing the financial statements.
24. We have disclosed to you the identity of the Agency's related parties and all the related -party
relationships and transactions of which we are aware.
25. 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
Agency's ability to record, process, summarize and report financial data.
RSM US LLP
July 23, 2021
Page 4
26 . We are aware of no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices .
27. 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.
S uppl e m e nt a ry Information
28. With respect to supplementary information presented in relation to the 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 financial
statements, we will make the audited 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.
29. With respect to the Required Supplementary Information presented as required by the
Governmental Accounting Standards to supplement the basic 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 .
30. Management has assessed the financial condition of the Agency and noted no deteriorating
financial condition.
31 . The Agency is not in a state of emergency based upon the conditions described in Section
218.503(1 ), Florida Statutes .
C ompliance Consid e ration s
In connection with your audit, conducted in accordance with Government Auditing Standards, we confirm
that management:
32. Is responsible for the preparation and fair presentation of the financial statements in accordance
with the applicable financial reporting framework .
33. Is responsible with the laws, regulations, and provisions of contracts and grant agreements
applicable to the Agency .
RSM US LLP
July 23, 2021
Page 5
34. 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 .
35 . 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 .
36 . 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.
37 . Is responsible for the design, implementation and maintenance of internal controls relevant to
the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
38 . Acknowledges its responsibility for the design, implementation and maintenance of internal
controls to prevent and detect fraud .
39 . 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 .
40 . Has a process to track the status of audit findings and recommendations.
41 . Has identified for the auditor previous audits, attestation engagements, or other studies related
to the audit objectives and whether related recommendations have been implemented.
42 . 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 with in 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:
Ali~ =
City Manager
Chief Financial Officer
Allison Williams
Deputy Finance Director
MIAMI BEACH
City of Miami Beach, 1700 Conventio n Center Drive , Miami Beac h, Flo rido 33 139 , '!'tYlY,',lni.Qmm~hll.g.QY
FI NA NCE DE PA RT MENT
July 23 , 2021
RSM US , LLP
801 Brickell Avenue
Suite 1050
Miami , FL 33 131
In connection with your examination of the Miami Beach Redevelopment Agency (the Agency), a
component unit of the City of Miami Beach , Flo r ida 's (the City), compliance with Section 218 .415, Florida
Statutes , and Local Government Investment Policies during the period October 1, 2019 to September 30 ,
2020 , in accordance with attestation standards established by the American Institute of Certified Public
Accountants , we confirm , to the best of our knowledge and belief, the following representat ions made to
you during the course of your engagement:
1. We understand that we are responsible for the Agency 's compliance with the Statute and the
selection of the criteria against which compliance is being evaluated .
2 . The criteria in Section 218.415 , Florida Statutes, Local Government Investment Policies.
3 . We understand that we are responsible for determining that such criteria are appropriate for our
purposes .
4 . We are responsible for establishing and maintaining effective internal controls over the Agency 's
compliance with the Statute .
5 . We have performed an evaluation of the Agency's compliance with the Statute . Based on our
evaluation , the Agency has complied with the Statute during the year ended September 30 , 2020 .
6 . There are no known matters contradicting the assertion nor any communication from regulatory
agencies affecting the Agency 's possible noncompliance with the Statute received by us during the
year ended September 30, 2020 or through the date of this letter .
7. We have made available to you all records relevant to the Agency 's compliance with the Statute .
8 . No events or transactions have occurred subsequent to September 30, 2020 or through the date of
this letter .
9 . The re has been no knowledge of fraud or suspected fraud affecting the entity involving :
a. Management.
b. Employees who have significant roles in intern a l controls.
c . Others whe re fraud could have a material effect on the Agency 's compliance with the Statute .
10 . We acknowledge our responsibility for the des ign and implementation of programs and controls to
provide reasonable assurance that fraud is prevented and detected .
RSM US, LLP
July 23 , 2021
Page 2
11 . 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 .
12. We have responded fully to all inquiries made to us by you during your engagement .
13. 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
Allison Williams
Deputy Finance Director
11111 ill iii iii 111 I 11 1,,,, 1 llll\tlll,,, •.
1111111111 1110 1111
MIAM I BEACH
March 15 , 2021
RSM US LLP
801 Brickell Avenue Suite 1050
Miami, FL 33131
This representation letter is provided in connection with your audit of the special-purpose financial
statements of the Miami Beach Convention Center (the Convention Center), as managed by Global
Spectrum, LP . (GS) as of and for the year ended September 30, 2020 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 GS
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 7, 2020, 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 GS 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.
I
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.
RSM US LLP
March 15, 2021
Page 2
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.
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. As of and for the year ended September 30, 2020, 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 Convention Center
Summary of Unrecorded Audit Adjustments
Year Ended September 30, 2020
Description Assets
Prior period reversal of adjustment to accrued payroll due to
the failure to record an accrual for full -time employee
wages. $
Projected misstatement resulting from an expense incurred
in 2019 period that was recorded as a 2020 item .
Effect -Increase (Decrease)
Liabilities Equity Revenue El(pendlture
$ $ (18,455) $ $ (18,455)
(16,608) (16,608)
Total Effect $ $ (16 ,608) $ (18,455) $ $ (35,063) =================================================
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;
RSM US LLP
March 15, 2021
Page 3
c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain
audit evidence; and
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. The statement of cash flows is presented under the indirect method and conforms with the financial
reporting provisions of the Management Services Agreement and is consistent with what has
traditionally been provided to the City .
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 . 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.
c . Others where the fraud could have a material effect on the financial statements.
16. We have no knowledge of any allegat ions of fraud or suspected fraud affecting the entity 's financial
statements received in communications from employees , former employees, analysts , regulators, 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 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. We are aware of 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 .
RSM US LLP
March 15, 2021
Page4
Miami Beach Convention Center, as managed by Global Spectrum, L.P .
Freddie Peterson
General Manager
c2~
Director of Finance
MIAM I BEACH
City of M iomi Beach , 1700 Conventio n Ce nter Dr ive , Miami Beach, Florida 33139, www .miom ibea chfl .gov
June 3, 2021
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 period
ended September 30, 2020 (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 7, 2020 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
controls relevant to the preparation and fair presentation of the Schedule that is free from material
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 with 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 controls over financial reporting .
RSM US LLP
Page 2 of 4
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 , regulat ions , and provisions of
contracts and grant agreements whose effects shou ld 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 like ly to have occurred, of noncompliance
with provi s ions 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 internal controls over compliance 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 T rust Fund
awards. If applicable, 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 financial reports
and c laims 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 with the grantor agency that there are no monitoring or site visits required .
RSM US LLP
Page 3 of 4
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 controls over compliance or other factors that might
significantly affect internal controls 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 claims 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 regu lations and have met the requirements of the
Children's Trust Fund contract agreements .
26 . Management has considered the results of subrecip ient 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.
RSM US LLP
Page 4 of 4
City of Miami Beach , Florida
Alioa 0<~:T¥
City Manager
Allison Williams
Deputy Finance Director
DocuSign Envelope ID : 87 A 17 4BF-1A82-4C2A-BFA0-1 ADAA5D26697
MIAMIBEAC
City of Miami Beach, 1700 Convention Center Drive, Miomi Bea ch, Florida 33139, www.miam ibeachfl .gov
FINANCE DEPARTMENT
March 15, 2021
RSM US LLP
801 Brickell Avenue, Suite 1050
Miami, FL 33131
In connection with your audit of the Schedule of Expenditures of the Building Better Communities Bond
Projects (the Schedule) of the City of Miami Beach, Florida, (the "Program ") for the year ended September
30, 2020, we confi r m that we are responsible for the fair presentation of the Schedule in conformity with
accounting principles generally accepted in the United States of America.
We confirm, to the best of our knowledge and belief, as of the date of this letter:
The Schedule
1 . We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
October 7, 2020, for the preparation and fair presentation of the Schedule referred to above in
accordance with U.S. GAAP.
2. We acknowledge our responsibility for the design , implementation, and maintenance of interna l
control relevant to the preparation and fair presentation of the Schedule 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 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 , when
applicable.
5 . There are no related -party transactions that are required to be reported in the Schedule .
6. All events subsequent to the date of the Schedule and for wh ich U .S . GAAP requires adjustment or
disclosure have been adjusted or disclosed, when applicable.
7 . There are no actual or possible litigation and claims that are required to be accounted for and
disclosed in accordance with U .S. GAAP related to the Program.
8 . We are not aware of any pending or threatened litigation , claims, or assessments that are required to
be accrued or disclosed in the Schedule.
9 . We have complied with all aspects of contractual agreements that would have a material effect on the
Program 's Schedule in the event of noncompliance .
10. We have no knowledge of any uncorrected misstatement in the Schedule .
DocuSign Envelope ID: 87 A 17 4BF-1 A82-4C2A-BFA0-1 ADAA5D26697
RSM US LLP
March 15, 2021
Page 2
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 Schedule 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 boards and committees, or summaries of actions of
recent meetings for which minutes have not yet been prepared which are relevant to the Program .
12 . All transactions have been recorded in the accounting records and are reflected in the Schedule.
13 . We have disclosed to you the results of our assessment of risk that the Schedule may be materially
misstated as a result of fraud .
14. We have no knowledge of allegations of fraud or suspected fraud, affecting the Program involving :
a . Management.
b. Employees who have significant roles in the internal control.
c . Others where the fraud could have a material effect on the Schedule.
15 . We have no knowledge of any allegations of fraud or suspected fraud affecting the Schedule received
in communications from employees , former employees, or others .
16 . We have no knowledge of noncompliance or suspected noncompliance with laws and regulations
whose effects should be considered when preparing the Schedule .
17 . We are not aware of any pending or threatened litigation and claims whose effects should be
considered when preparing the Schedule of the Program.
18. 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.
19 . We are not aware of any communications from regulatory agencies concerning noncompliance with,
or deficiencies in, financial reporting practices.
20. 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 .
In connection with your audit of the Program conducted in accordance with the Program-Specific Audit
Option under Miami-Dade County, Florida Ordinance 05-47, Applicable Resolutions and Building Better
Communities, Administrative Rules (Ordinance 05-47), we confirm:
21. We are responsible for complying, and we have complied, with the requirements of Miami-Dade
County (MDC) Ordinance 05-47.
22. We are responsible for understanding and complying with the requirements of laws , regulations, and
the provisions of contracts and grant agreements related to the Program .
23. We are responsible for establishing and maintaining, and we have established and maintained,
effective internal control over compliance for the Program that provides reasonable assurance that we
2
DocuSign Envelope ID : 87 A 17 4BF-1 A8 2-4C2A-BFA0-1 ADAA5D26697
RSM US LLP
March 15, 2021
Page 3
are managing the Program in compliance with laws, regulations, and the provisions of contracts or
grant agreements that could have a material effect on the Program .
24 . We have prepared the Schedule in accordance with MDC Ordinance 05-47 and have included all
Program expenditures made during the period .
25 . 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
Program.
26 . We have made available all contracts and grant agreements (including amendments, if any) and any
other correspondence relevant to the Program and related activities that have taken place.
27 . We have identified and disclosed to you that there are no amounts questioned and there is no known
noncompliance with the direct and material compliance requirements of the Program.
28. We believe that we have complied with the direct and material compliance requirements of the
Program.
29. We have made available all documentation related to compliance with the direct and material
compliance requirements, including information related to the Program's financial reports and claims
for advances and reimbursements.
30. We have provided you our interpretations of any compliance requirements that are subject to varying
interpretations.
31 . There have been no communications with the grantor concerning noncompliance with the reporting
requirements of the Program .
32 . Ma nage me nt has di s clo se d to th e a ud it or th e findin gs rece iv ed and re lated correctiv e act ion s ta ken
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 your report (when applicable).
33 . 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 reporting period.
34 . There is no known noncompliance with direct and material compliance requirements occurring
subsequent to the period covered by your report .
35 . There are no changes in internal control over compliance or other factors that might significantly affect
internal control, subsequent to the date as of which compliance is audited.
36. Program financial reports and claims for advances and reimbursements are suppo rted by the books
and records from which the Schedule have been prepared.
37. The copies of Program financial reports provided to you are true copies of the reports submitted, or
electronically transmitted to Miami -Dade County, Florida .
38 . We have charged costs to Program in accordance with applicable cost principles .
3
DocuSign Envelope ID: 87 A 17 4BF-1 A82-4C2A-BFA0-1 ADAA5D26697
RSM US LLP
March 15, 2021
Page4
City of Miami Beach, Florida:
DocuSigned by:
Raul . gu1 a
City Manager
John
CFO
DocuSigned by :
3/15/2021 I 11:52 EDT
3/15/2021 I 11:38 EDT
~=·~~ 3/15/2021 I 11:37 EDT
Alli so A 'WMft~AA's'40
Deputy Finance Director
4
' Bf AC
April 22, 2021
RSM US LLP
(
VISITOR AND
CONVENTION
AUTHOR ITY
801 Brickell Ave Suite 1050
Miami, FL 33131
In connection with your audit of the City of Miami Beach , Florida Visito r & Convention Authority's (the
Authority) financial statements as of and for the year ended September 30 , 2020 for the purpose of
expressing an opinion on whether the financial statements are presented fairly, in a ll 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 April 22, 2021 :
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter with the
City of Miami Beach , F lorida (the City) dated October 7th, 2020 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, including those with the City and the Authority, and interfund transactions,
including interfu nd 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 U .S. GAAP.
6. We have no knowledge of any events subsequent to the date of the financial statements for which
U.S. GAAP requires adjustment or disclosure .
7. There are no known actual or possible litigation or claims against the Authority .
8 . We have no direct or indirect legal or moral obligation for any debt of any organi zati on , public or
private , that is not disclosed in the financial statements .
1701 Meridian Avenue , Suite 40 3, Miam i Beach , Florida 33139 .www .miamibeach vc a .com . 305-673-7050
RSM US LLP
April 22, 2021
Page 2
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 .
10. With respect to drafting the financial statement services performed in the course of the audit:
a. We have made all management decisions and perform ed all management functions ;
b . We assigned an appropriate individual to oversee the services;
c. We evaluated the adequacy and results of the services performed, and made an informed
judgment on the results of the services performed ;
d . W e have accepted responsibility for the results of the services; and
e. We have accepted responsibility for all significant judgments and decisions that were made .
11 . As of and for the year ended September 30 , 2020 , 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 , regard less 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, 2020
Effect -Increase (Decrease)
Description Assets Li a bilitie s Equity Revenue
Prior pe rio d reversal of adJustment to accru ed
unrecorded expenditures. $ $ $ (22 ,841) $
Expenditure
$ (22,841)
Total Effect $ $ $ (22,841) $ $ (22,841) ============================================
Information Provided
12 . 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; and
d. Minutes of the meetings of the governing boards and committees, or summaries of actions of
recent meetings for which minutes have not yet been prepared .
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13. All transactions have been recorded in the accounting records and are reflected in the financial
statements .
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 . 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 financial statements .
16. 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 , or others .
17 . We have no knowledge of noncompliance or suspected noncompliance with laws and regulations
whose effects should be considered when preparing financial statements . Additionally, 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.
18 . We are not aware of any pending or threatened litigation and claims whose effects should be
considered when preparing the financial statements .
19 . We have disclosed to you the identity of the Authority'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 Authority's ability to record, process, summarize
and report financial data.
21 . We are aware of 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 .
Supplementary Information
23. With respect to supplementary information presented in relation to the 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 .
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d. The following are underlying significant assumptions or interpretations regarding the
measurement or presentation of such information:
The actuarial assumptions included in the financial statement disclosures .
e. When supplementary information is not presented with the aud ited financial statements , we will
make the audited 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.
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 .
b. We believe such required supplementary information is measured and presented in accordance
with guidelines prescribed by U .S . GMP.
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 the
measurement or presentation of such information :
The actuarial assumptions included in th e 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 preparat ion 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 .
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30. 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.
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 .
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 .
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City of Miami Beach : Florida Visitor & Convention Authority
lf
Grisette Roqu e Marcos
Executive Director, Miami Beach Visitor and Convention Authority
Steve Adkin s
Chair, Miami Beach Visitor and Convention Authority Board of Directors
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City of Miami Beach, Florida
c/o City of Miami Beach, Florida Visitor & Convention Authority
Allison Williams
Deputy Finance Director for the City of Miami Beach , Florida
EXHIBIT C
Recent Accounting Pronouncements
RECENT ACCOUNTING PRONOUNCEMENTS
The following accounting pronouncements have been issued as of March 31, 2021, but are not yet
effective and may affect the future financial reporting by the City.
• GASB Statement No. 84, Fiduciary Activities, was issued January 2017 . This statement improves
guidance regarding the identification of fiduciary activities for accounting and financial reporting
purposes and how those activities should be reported. The provisions of this Statement will be
effective for the City beginning with its year ending September 30 , 2021.
• GASB Statement No. 87, Leases, was issued June 2017. 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.
• GASB Statement No. 90, Majority Equity Interests-An Amendment of GASB Statements No. 14
and No . 61, was issued August 2018. This Statement improves the consistency and comparability
of reporting a government's majority equity interest in a legally separate organization and
improves the relevance of financial statement information for certain component units . The
provisions of this Statement will be effective for the City beginning with its year ending
September 30, 2021 .
• GASB Statement No. 91, Conduit Debt Obligations, was issued May 2019 . 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 year ending September 30, 2023.
• GASB Statement No . 92, Omnibus 2020, was issued January 2020 . 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 .
• GASB Statement No . 93, Replacement of Interbank Offered Rates, was issued in March 2020 .
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, 2021.
• GASB Statement No . 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangements, was issued March 2020 . 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 City
beginning with its year ending September 30, 2023.
• GASB Statement No. 96, Subscription-Based Information Technology Arrangements, was issued
May 2020. 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.
• 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, was issued June 2020. 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 requirements of this Statement are effective for the City beginning with its year ending
September 30, 2022 . Except for the requirement of this Statement that: (1) exempt primary
governments that perform the duties that a governing board typically performs from treating the
absence of a governing board the same as the appointment of a voting majority of a governing
board in determining whether they are financially accountable for defined contribution pension
plans , defined contribution OPEB plans , or other employee benefit plans, and (2) limit the
applicability of the financial burden criterion in paragraph 7 of Statement No . 84 to defined benefit
pension plans and defined benefit OPEB plans that are administered through trust that meet the
criteria in paragraph 30 of Statement No. 67 or paragraph 30 of Statement No . 74 , respectively,
are effective immediately.