LTC 286-2023 External Auditor's (RSM US LLP) Annual Audit Report on the City of Miami Beach (the City) for the period ended September 30, 2022MIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC# LETTER TO COMMISSION
TO:
FROM:
DATE:
SUBJECT:
Mayor Dan Gelber and Members of the City Commission
Alina T. Hudak, City Manag~
June 23, 2023 l( ·
Ex tern al A ud ito r's (R S M U S LL P ) A nnu al A ud it R epo rt on the C ity of M iam i B each {the
C ity ) fo r the p erio d ende d S epte m ber 30 , 2022
I am pleased to announce the successful completion of the City of Miami Beach's external audit process
for FY 2022. During the audit process, the external auditors, RSM US LLP, noted no material or
significant adjustments required to the financial records of the City and that major estimates were
appropriately and accurately reflected in the completed financial reports. Our external auditors identified
no audit findings nor management letter comments for the year audited and the favorable resolution to
any prior year's comment. Consequently, the City has obtained the highest possible audit results with
an unmodified (clean) audit opinion for FY 2022.
All audit reports and required continuing disclosures are completed and the following reports are
currently available on the City's website located at https://www.miamibeachfl.gov/city-
hall/finance/financial-documents/
A. Annual Comprehensive Financial Report (ACFR) for the fiscal year ended September 30, 2022,
which includes an unmodified (clean) audit opinion.
B. Audit Report for fiscal year ended September 30, 2022 which includes:
• Annual Comprehensive Financial Report (ACFR)
• 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
• Affidavits of Impact Fees
C. Miami Beach Redevelopment Agency (R D A ) Audit Report for the fiscal year ended September
30, 2022, which includes an unmodified (clean) audit opinion.
Enclosed, for your information is the following document:
A. The Auditor's letter to the Mayor and Members of the City Commission for the City of Miami
Beach which includes the following:
• Required Communications
• Significant Accounting Estimates
• Exhibits:
286-2023
o Exhibit A - Internal Control Matters
o Exhibit B- Significant Written Communications Between Management and Our
Firm Representation Letters
o Exhibit C- Recent Accounting Pronouncements
If you have any questions or need additional information, please feel free to contact Jason D. Greene
at 305-673-7466.
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1.6
C it y o f M ia m i B e a c h ,
F lo r id a
Report to the Honorable Mayor and Members of the
City Commission
April 14, 2023
THE POWER OF BEING UNDERSTOOD
AUDIT ' TAX CONSULTING
·- RSM
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RSM
RSM USLLP
April 14, 2023
Honorable Mayor and Members of the City Commission
City of Miami Beach, Florida
Miami Beach, Florida
d
Attention: Honorable Mayor and Members of the City Commission
We are pleased to present this report related to our audit of the financial statements of the City of Miami
Beach, Florida (the City) as of and for the year ended September 30, 2022. This also includes the reports
issued for the Children's Trust, Miami Beach Visitors and Convention Authority. We previously provided a
separate communication regarding the report issued for the Miami Beach Convention Center as Managed
by Oak View Group and are providing a separate communication for the Miami Beach Redevelopment
Agency. 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 continue to be of service to the City.
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX' CONSULTING
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T A B L E O F C O N T E N T S
Required Communications
Significant Accounting Estimates
Exhibits
Exhibit A-Internal Control Matters
Exhibit B-Significant Written Communications Between Management and Our Firm
• Representation Letter
Exhibit C-Recent Accounting Pronouncements
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5-7
R E Q U IR E D C O M M U N IC A T IO N S
Auditing standards generally accepted a in the United States of America (AU-C 260, The Auditor's
Communication With Those Charged With Governance) require the auditor to promote effective two-way
communication between the auditor and those charged with governance. Consistent with this
requirement, the following summarizes our responsibilities regarding the basic financial statement audit
as well as observations arising from our audit that are significant and relevant to your responsibility to
oversee the financial and related compliance reporting process.
Our Responsibilities With Regard to the Financial Statement and Compliance
Audit
Our responsibilities under auditing standards generally accepted in the United States of America and
Government Auditing Standards issued by the Comptroller General of the United States have been
described to you in our arrangement letter dated October 10, 2022. Our audit of the basic financial
statements does not relieve management or those charged with governance of their responsibilities,
which are also described in that letter.
Overview of the Planned Scope and Timing of the Financial Statement Audit
We have issued a separate communication dated December 6, 2022 regarding the planned scope and
timing of our audit and identified significant risks.
Accounting Policies and Practices
Preferability of Accounting Policies and Practices
Under accounting principles generally accepted in the United States of America, in certain circumstances,
management may select among alternative accounting practices. In our view, in such circumstances,
management has selected the preferable accounting practice.
Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness of the accounting policies used by the
City. The City adopted the following Governmental Accounting Standards Board (GASB) Statements
during the year:
• Governmental Accounting Standard Board (GASB) Statement No. 87, Leases. This Statement
outlines new guidance that establishes a single approach to accounting for and reporting leases
by state and local government. The implementation of GASB No. 87, Leases, resulted in
restatement of beginning balances for the Parking Major Enterprise Fund and Business-Type
Activities. It also resulted in the recording of various lease related items as of October 1 and for
the year ended September 30, 2022.
• GASB Statement No. 91, Conduit Debt Obligations. This Statement requires issuers to disclose
general information about their conduit debt obligations, organized by type of commitment
including the aggregate outstanding principal amount of the issuers' conduit debt obligations and
a description of each type of commitment. Issuers that recognize liabilities related to supporting
the debt service of conduit debt obligations also should disclose information about the amount
recognized and how the liabilities changed during the reporting period. The City issues conduit
debt but does not recognize liabilities related to the conduit debt obligations.
• G A S B St at em en t N o . 92 , Omnibus 2020. The objectives of this statement were to enhance
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.
• 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. This statement resulted in more consistent financial reporting of defined benefit
contribution pension plans, defined contribution OPEB plans, and other employment benefit
plans, while mitigating the costs associated with reporting those plans
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.
Audit Adjustments and Uncorrected Misstatements
There were no audit adjustments made to the original trial balance presented to us to begin our audit
We are not aware of any uncorrected misstatements other than misstatements that are clearly trivial.
Departure From the Auditor's Standard Report
Expected Emphasis-of-Matter Paragraph
As discussed in Note 18 to the financial statements, the City adopted the recognition and disclosure
requirements of Governmental Accounting Standards Board No. 87, Leases. In light of this matter, we will
include an emphasis-of-matter paragraph in the auditor's report. Below is a draft of the paragraph to be
included in the auditor's report:
Emphasis of Matter
As discussed in Note 18 to the financial statements, the City adopted the recognition and disclosure
requirements of Governmental Accounting Standard Board Statement No. 87, Leases, as of
October 1, 2021. As a result, beginning lease receivable, right-of-use asset, lease liability, and
deferred inflows of resources balances were restated. The City restated the beginning net position,
assets and liabilities of the Parking major enterprise fund and the business-type activities and
recorded other lease related items in the financial statements. Our opinion is not modified with
respect to this matter.
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O t h e r In fo r m a t io n In c lu d e d in A n n u a l R e p o rt s
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 City's introductory section, the combining and individual
nonmajor fund financial statements and schedules, and the statistical section which are presented for
purposes of additional analysis and are not a required part of the basis financial statements. We did not
identify material inconsistencies with the audited basic financial statements.
Observations About the Audit Process
Disagreements With Management
We encountered no disagreements with management over the application of significant accounting
principles, the basis for management's judgments on any significant matters, the scope of the audit or
significant disclosures to be included in the basic financial statements.
Consultations With Other Accountants
We are not aware of any consultations management had with other accountants about accounting or
auditing matters.
Significant Issues Discussed With Management
We discussed with management the adoption of GASB Statement No. 87 Leases, and the related
accounting adjustments and disclosures associated with the new standard. No other significant issues
arising from the audit were discussed or were the subject of correspondence with management.
Significant Difficulties Encountered in Performing the Audit
We did not encounter any significant difficulties in dealing with management during the audit.
Difficult or Contentious Matters That Required Consultation
We did not encounter any significant and difficult or contentious matters that required consultation outside
the engagement team.
Shared Responsibilities for Independence
Independence is a joint responsibility and is managed most effectively when management, audit
committees, and audit firms work together in considering compliance with AICPA and Government
Accountability Office (GAO) independence rules. For RSM to fulfill its professional responsibility to
maintain and monitor independence, management, the audit committee, and RSM each play an important
role.
Our Responsibilities
• AICPA and GAO rules require independence both of mind and in appearance when providing audit
and other attestation services. RSM is to ensure that the AICPA and GAO's General Requirements
for performing non-attest services are adhered to and included in all letters of engagement.
• Maintain a system of quality control over compliance with independence rules and firm policies.
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T h e C i ty 's R e s p o n s i b ili ti e s
• Timely inform RSM, before the effective date of transactions or other business changes, of the
following:
- New affiliates, directors, officers, or person in financial reporting and compliance oversight roles.
- Changes in the reporting entity impacting affiliates such as partnerships, related entities,
investments, joint ventures, and component units.
• Provide necessary affiliate information such as new or updated structure charts, as well as financial
information required to perform materiality calculations needed for making affiliate determinations.
• Understand and conclude on the permissibility, prior to the City and its affiliates, officers, directors, or
persons in a decision-making capacity, engaging in business relationships with RSM.
• Not entering into arrangements of nonaudit services resulting in RSM being involved in making
management decisions on behalf of the City.
• Not entering into relationships resulting in RSM, RSM covered persons or their close family members,
temporarily or permanently acting as an officer, director, or person in an accounting, financial
reporting or compliance oversight role at the City.
Internal Control and Compliance Matters
We are issuing under separate cover the following reports in connection with our audit, as required by
Government Auditing Standards, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance) and Chapter 10.550, Rule 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
• Independent Accountant's Report on Compliance with Section 218.415, Florida Statutes
• Financial and Compliance reports for the Children's Trust
• Miami Beach Convention Center as Managed by Oak View Group
• We will issue subsequent to this communication our Independent Auditor's Report on the stand-alone
financial statements of the Miami Beach Redevelopment Agency which consists of multiple funds
within the City's annual comprehensive financial report.
Significant Written Communications Between Management and Our Firm
Copies of significant written communications between our firm and the management of the City, including
the letter provided to us by management, are attached as Exhibit B.
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S IG N IF IC A N T A C C O U N T IN G E S T IM A T E S
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, 2022
basic financial statements.
Significant Accounting Estimates
Accounting for Self-Insurance Liabilities
Accounting policy The City is self-insured for general and auto liability, workers'
compensation, police professional liability, other liability and employees'
health and dental. The accrued liability for estimated claims represents an
estimate of the eventual loss on claims, including claims incurred but not
yet reported.
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
The City utilizes the services of two actuaries to assist in developing risk
reserves for these liabilities.
We have audited the underlying data supporting the estimates and
reviewed management's methodology, including evaluating the actuarial
reports and assumptions used which appears reasonable and
consistently applied, and have deemed the resulting estimates to be
reasonable.
Accounting for Pension Plans and Related Net Pension Liabilities
Accounting policy
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
The net pension liabilities and related pension amounts are actuarially
determined in accordance with the parameters established by the
Governmental Accounting Standards Board. The difference between total
pension liability and plan fiduciary net position at each plans'
measurement date and any associated deferred outflows/inflows as of the
period ended are recognized in the financial statements.
City management and/or the pension plans' management, with input from
its actuary, developed the actuarial assumptions based on relevant
criteria. City management reviewed and approved the financial statement
estimates derived from the pension plans' actuarial reports.
We have audited the underlying data supporting the estimate and
reviewed management's methodology, including evaluating the actuarial
reports and assumptions used which appears reasonable and
consistently applied, and have deemed the resulting estimates to be
reasonable.
Depreciation of Capital Asset
Accounting policy 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.
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Significant Accounting Estimates
'
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
Depreciation of capital assets is determined using the straight-line method
of depreciation over the estimated useful lives of the asset, as assigned
by management.
We have audited the underlying data supporting the estimate and
reviewed management's methodology which appears properly and
consistently applied and have deemed the resulting estimate to be
reasonable.
Allowance for Doubtful Accounts
Accounting policy
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
All trade and similar receivables are shown net of an allowance for
uncollectible amounts to arrive at the net realizable value.
Receivables are analyzed for their collectability based on the terms and
conditions stated in individual agreements. In addition to receivables
specifically identified as uncollectible, a general allowance is calculated
based on the City's historical experience.
We have audited the underlying data supporting the estimate and
reviewed management's methodology which appears properly and
consistently applied and have deemed the resulting estimate to be
reasonable.
Accounting for Other Post-Employment Benefits
Accounting policy Total other postemployment benefits (OPEB) liabilities, related deferred
OPEB amounts and expenses are actuarially determined in accordance
with the parameters established by the GASB.
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
Management with input from its OPEB actuary developed the actuarial
assumptions based on relevant criteria. Management reviewed and
approved the financial statement estimates derived from the OPEB
actuarial report.
We have audited the underlying data supporting the estimate and
reviewed management's methodology, including evaluating the actuarial
reports and assumptions used which appears reasonable and
consistently applied, and have deemed the resulting estimates to be
reasonable.
Incremental Borrowing Rate on Leases
Accounting policy The City as a lessor determines future lease amounts to be received over
the terms of the lease agreements and discounts the projected cash flows
using an estimated incremental borrowing rate. The lease receivable is
reduced as payments are received from the lessees, and the associated
deferred inflows of resources are amortized and recognized as revenue
over the lease terms.
The City as a lessee determines future lease amounts to be received over
the terms of the lease agreements and discounts the projected cash flows
using an estimated incremental borrowing rate. The lease liability is
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Significant Accounting Estimates
Management's estimation
process
Basis for our conclusion
on the reasonableness of
the estimate
reduced as payments are made to the lessees, and the associated right
of use assets are amortized and recognized as expense over the lease
terms.
The City uses net present value of the lease payment to record the initial
lease liability and lease receivable based on the incremental borrowing
rate for the leases.
If not directly stated in the lease agreement, the City will evaluate the
appropriate incremental borrowing rate based upon the term of the lease
and typical cost of borrowing for the City for that period
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.
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EX H IBIT A
Internal Control and Compliance Matters
C ity o f M iam i B e ach ,
F lo rid a
Single Audit Reports in Accordance with
Uniform Guidance and Chapter 10.550,
Rules of the Florida Auditor General
Fiscal Year Ended September 30, 2022
Contents
Report on internal control over financial reporting and on compliance and other matters
based on an audit of financial statements performed in accordance with
Government Auditing Standards 1-2
Report on compliance for each major federal program and state project; report on internal
control over compliance; and report on the schedules of expenditures of federal awards
and state financial assistance required by the Uniform Guidance and Chapter 10.550,
Rules of the Florida Auditor General 3-5
Schedule of expenditures of federal awards
Schedule of expenditures of state financial assistance
Notes to schedules of expenditures of federal awards and state financial assistance
Schedule of findings and questioned costs
Summary schedule of prior year audit findings
6-8
9
10
11-12
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RSM
RSM USLLP
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance With Government Auditing Standards
Independent Auditor's Report
Honorable Mayor and Members
of the City Commission
City of Miami Beach, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States (Government Auditing Standards), the financial
statements of the governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the City of Miami
Beach, Florida (the City), as of and for the year ended September 30, 2022, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have issued
our report thereon dated April 14, 2023. Our report included a reference to other auditors who audited the
financial statements of the City of Miami Beach Employees' Retirement Plan, City of Miami Beach
Pension Fund for Firefighters and Police Officers, City of Miami Beach Police Officer's Relief and Pension
Fund, and the City of Miami Beach Firefighters' Relief and Pension Fund. This report does not include the
results of the other auditors' testing on internal control over financial reporting or compliance and other
matters that are reported on separately by those auditors. The financial statements of the City of Miami
Beach Police Officer's Relief and Pension Fund were not audited in accordance with Government
Auditing Standards and accordingly this report does not include reporting on internal controls over
financial reporting or instances of reportable noncompliance associated with the City of Miami Beach
Police Officer's Relief and Pension Fund.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
THE POWER OF BEING UNDERSTOOD
AUDIT TAX CONSULTING
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instance of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Miami, Florida
April 14, 2023
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·- RSM
RSM USLLP
Report on Compliance for Each Major Federal Program and State Project; Report on Internal
Control Over Compliance; and Report on the Schedules of Expenditures
of Federal Awards and State Financial Assistance Required by the Uniform Guidance
and Chapter 10.550, Rules of the Florida Auditor General
Independent Auditor's Report
Honorable Mayor and City Commissioners
City of Miami Beach, Florida
Report on Compliance for Each Major Federal Program and Major State Project
Opinion on Each Major Federal Program and Major State Project
We have audited the City of Miami Beach, Florida's (the City) compliance with the types of compliance
requirements described in the 0MB Compliance Supplement and the requirements described in the
Florida Department of Financial Services' State Project Compliance Supplement, that could have a direct
and material effect on each of the City's major federal programs and state projects for the year ended
September 30, 2022. The City's major federal programs and state projects are identified in the summary
of auditor's results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs and
state projects for the year ended September 30, 2022.
Basis for Opinion on Each Major Federal Program and Major State Project
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Florida
Auditor General. Our responsibilities under those standards and the Uniform Guidance are further
described in the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program and major state project. Our audit does not provide a legal determination of the
City's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's
federal programs and state projects.
THE POWER OF BEING UNDERSTOOD
AUDIT ' TAX CONSULTING
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Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAA S, Government Auditing Standards, the Uniform Guidance and Chapter 10.550, Rules of the Florida
Auditor General will always detect material noncompliance when it exists. The risk of not detecting
material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material, if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a
reasonable user of the report on compliance about the City's compliance with the requirements of each
major federal program and major state project as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, the Uniform Guidance,
and Chapter 10.550, Rules of the Florida Auditor General we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the City's compliance with the compliance requirements referred to
above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City's internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances and to test and report on internal
control over compliance in accordance with the Uniform Guidance and Chapter 10.550, Rules of the
Florida Auditor General, but not for the purpose of expressing an opinion on the effectiveness of the
City's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program or state project on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that
there is a reasonable possibility that material noncompliance with a type of compliance requirement of a
federal program or state project will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance with a type of compliance requirement of a federal program that is less
severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
4
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance and Chapter 10.550, Rules of the Florida Auditor General. Accordingly, this report is
not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance and
Schedule of Expenditures of State Financial Assistance Required by Chapter 10.550, Rules of the
Florida Auditor General
We have audited the financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City, as of and for the year ended September 30, 2022, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements. We issued our
report thereon dated April 14, 2023, which contained an unmodified opinion on those financial
statements, included an emphasis of matter for the adoption of GASS Statement No. 87 Leases, and
included a reference to other auditors. Our audit was performed for the purpose of forming opinions on
the financial statements that collectively comprise the basic financial statements. The accompanying
schedule of expenditures of federal awards and schedule of expenditures of state financial assistance are
presented for purposes of additional analysis as required by the Uniform Guidance and Chapter 10.550,
Rules of the Florida Auditor General and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The information has
been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards
and schedule of expenditures of state financial assistance are fairly stated in all material respects in
relation to the basic financial statements as a whole.
Miami, Florida
April 20, 2023, except for our report on the Schedule of Expenditures
of Federal Awards and the Schedule of Expenditures of State Financial
Assistance, for which the date is April 14, 2023
5
City of Miami Beach, Florida
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2022
Federal Grantor/Pass-Through Grantor/Program or Cluster Title
Federal Assistance
Listing Number
Grant/Pass-Through Entity
Identifying Number
Provided to
Subrecipients
Total Federal
Expenditures
U.S. Department of Housing and Urban Development
Community Development Block Grant/ Entitlement Grants
Community Development Block Grant/ Entitlement Grants
Community Development Block Grant/ Entitlement Grants
Community Development Block Grant/ Entitlement Grants
Community Development Black Grant/ Entitlement Grants
Community Development Block Grant/ Entitlement Grants
Community Development Black Grant/ Entitlement Grants
Community Development Block Grant/ Entitlement Grants
14.218 B-19-MC-12-0014 $
14.218 B-15-MC-12-0014/B-17-MC-12-0014/
B-18-MC-12-0014/B8-19-MC-12-0014
14.218 B-15-MC-12-0014
14.218 B-18-MC-12-0014
14.218 B-21-MC-12-0014
14.218 B-15-MC-12-0014/B-18-MC-12-0014/
B-20-MC-12-0014
B-15-MC-12-0014/B8-17-MC-12-0014/ 14.218 B-19-MC-12-0014
14.218 B-15-MC-12-0014
Total Community Development Block Grant - Entitlement Grants Cluster
Home Investment Partnerships Program
Home Investment Partnerships Program
Home Investment Partnerships Program
Home Investment Partnerships Program
Home Investment Partnerships Program
Home Investment Partnerships Program
Home Investment Partnerships Program
14.239
14.239
14.239
14.239
14.239
14.239
14.239
M-21-MC-12-0212
M-15-MC-12-0212/M-16-MC-12-0212
M-15-MC-12-0212/M-16-MC-12-0212
M-20-MC-12-0212
M-16-MC-12-0212/M-17-MC-12-0212
M-15-MC-12-0212/M-16-MC-12-0212/
M-17-MC-12-0212
M-17-MC-12-0212
Total HOME Investment Partnerships Program
165,906 $
53,868
32,899
4,794
863,383
515,600
18,326
34
1,654,810
30,796
37,153
177,949
11,660
279,475
202,673
739,706
165,906
53,868
32,899
4,794
863,383
515,600
18,326
34
1,654,810
30,796
(6,015)
76,530
177,949
11,660
279,475
222,435
792,830
Pass-Through Miami-Dade County, Florida.
Supportive Housing Program - FY 2018/Continuum of Care - City of Miami Beach Outreach Program 14.267 FLO177L4D002013 63,079
Total Supportive Housing Program - Continuum of Care 63,079
Total U.S. Department of Housing and Urban Development 2,394,516 2,510,719
6
City of Miami Beach, Florida
Schedule of Expenditures of Federal Awards (Continued)
Fiscal Year Ended September 30, 2022
Federal Grantor/Pass-Through Grantor/Program or Cluster Title
Federal Assistance
Listing Number
Grant/Pass-Through Entity
Identifying Num ber
Provided to
Subrecipients
Total Federal
Expenditures
U.S._Departm ent_ot_Justice
Pass-Through Office of The Florida Attorney General:
VOCA -VICTIMS OF CRIME ACT 2021/22
Pass-Through Florida Department of Law Enforcement:
Edward Byrne Memorial Justice Assistance Gran t - Officer Safety and Wellness
Edward Byrne Memorial Justice Assistance Gran t - Optimal Surveillance
Total Florida Department of Law Enforcement
COD-19 Miami Beach Coronavirus Emergency Program
Cops Office Law Enforcement Mental Health and Wellness Act Program-Miami Beach Peer Support Project
Federal Equitable Sharing Agreement
Total U.S. Department of Justice
U.S. Department of Transportation
Pass-Through the Florida Department of Transportation:
State and Community Highway Traffic Safety Program-Motorcycle Safety Campaign
State and Community Highway Traffic Safety Program-Speed/Aggressive Driving Initiative
State and Community Highway Traffic Safety Program-Speed/Aggressive Driving Initiative
National Priority Safety Program-Impaired Driving Initiative
National Priority Safety Program-Miami Beach Occupant Protection and Child Passenger Initiative
National Priority Safety Program-Miami Beach Occupant Protection and Child Passenger Initiative
Total Highway Safety Cluster
Highway Planning and Construction-Northshore Open Space Beachwalk
Total Highway Planning and Construction Cluster
Total U.S. Department of Transportation
U.S. Department of Treasury
COD-19 Coronavirus State and Local Fiscal Recovery Funds
16.575 VOCA-2021-MBPD-00529 446,003
16.738 2021-JAGC-DADE-27-3B8-088 7,644
16.738 2020-01-BX-0839 59,790
67,434
16.034 2020-V-BX-0503 34,156
16.710 2020-MH-WX-KO13 13,510
16.922 FL0130700 65,655
626,758
20.600 G1R47
20.600 G1$20
20.600 G2048
20.616 G2318
20.616 G2202
20.616 G1U78
75,000
6,699
73,266
59,540
74,758
33,292
322,555
20.205 G1P47 670,499
670,499
993,054
21.027 23,555,418
Total U.S. Department of Treasury 23,555,418
7
City of Miami Beach, Florida
S chedule of Expenditures of Federal Awards (Continued)
Fiscal Year Ended September 30, 2022
Federal Grantor/Pass-Through Grantor/Program or Cluster Title
Federal Assistance
Listing Number
Grant/Pass-Through Entity
Identifying Number
Provided to
Subrecipients
Total Federal
Expenditures
Environmental Protection Agency
Pass-Through the State of Florida Department of Environmental Protection:
Bioswale Basis of Design - Everglades Court Green Alley 66.460 NF053 100,000
Total Environmental Protection Agency 100,000
U.S. Department of Homeland Security
Pass-Through the Slate of Florida Division of Emergency Management:
Hurricane Dorian - via Mutual Aide Agreement
Hurricane Florence - via Mutual Aide Agreement
Hurricane Michael - via Mutual Aide Agreement
Surfside Collapse - via Mutual Aide Agreement
Pass-Through the Miami-Dade County
Surfside Collapse - via Mutual Aide Agreement
Emergency Food and Sheller Program - Phase 37
Emergency Food and Shelter Program - Phase CARES
Emergency Food and Shelter Program - Phase 38/CARES
Emergency Food and Sheller Program - Phase 39
Pass-Through the Stale of Florida Division of Emergency Management:
Hazard Mitigation Grant Program - Wind Retrofit
Hazard Mitigation Grant Program - Wind Retrofit
Hazard Mitigation Grant Program - Wind Retrofit
Volunteer Florida - Community Emergency Response Team
Homeland Security Grant Program -Urban Areas Security Initiative 2019 - Region 7 ALPR Project
Homeland Security Grant Program -Urban Areas Security Initiative 2019
Homeland Security Grant Program -Urban Areas Security Initiative 2020
Total U.S. Department of Homeland Security
TOTAL EXPENDITURES OF FEDERAL AWARDS
97.036 01-018-19 8,562
97.036 n/a 124,534
97.036 02-028-18 107,173
97.036 n/a 117,138
97.036 n/a 103,033
460,440
97.024 159400-076 491
97.024 159400-076 5,570
97.024 159400-076 22,457
97.024 159400-076 30,027
97.039 FEMA-DR-4337-FL 1,932
97.039 FEMA-DR-4337-FL 308,877
97.039 F EMA-DR-4337-FL 269,406
97.042 CERT 22-006 5,449
97.067 EMW-2019-SS-00049 150,000
97.067 EMW-2019-SS-00049 67,899
97.067 EMW-2020-SS-00035 52,841
1,375,389
$ 2,394,516 $ 29,161,338
See notes to schedules of expenditures of federal awards and state financial assistance.
8
City of Miami Beach, Florida
Schedule of Expenditures of State Financial Assistance
For the Fiscal Year Ended September 30, 2022
State Grantor/Program
State of Florida,Department_of Environmental Protection
Fire Station #1
Total State of Florida, Department of Environmental Protection
State of Florida, Housing Finance Corporation
State Housing Initiatives Partnership (SHIP) Program
Total State of Florida, Housing Finance Corporation
Florida Department of Transportation
A 1A Indian Creek Corridor
Locally Funded Agreement - Transportation Management Initiative Agreement
Miami Beach Atlantic Trail Greenway Corridor from South Pointe Park to 87th Terrace
Public Transit Service Development Program - South Beach Loop Trolley Route
Total Florida Department of Transportation
State
CSFA Grant/Pass-Through Entity Total State
Number Identifying Number Expenditures
37.098 22SRP35 280
280
40.901 NIA 167,476
167,476
55.000 AS-343/439228-2-58-01 2,456,966
55.039 422239-2-12-01 16,144
55.038 G0053 500,970
55.012 G1C66 1,446,838
4,420,918
Florida Department_of_Health
Pass-Through Miami-Dade County. Florida:
Emergency Medical Services
Emergency Medical Services
Emergency Medical Services
64.005
64.005
64.005
C8013
C9013
C0013
1,801
3,852
2,026
Total Florida Department of Health 7,679
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 4,596,353
See notes to schedules of expenditures of federal awards and state financial assistance.
9
City of Miami Beach, Florida
Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance
Fiscal Year Ended September 30, 2022
Note 1. Basis of Presentation
The accompanying schedules of expenditures of federal awards and state financial assistance (the
Schedules) include the federal and state award activity of the City of Miami Beach, Florida (the City)
under programs of the Federal government and the State of Florida for the year ended September 30,
2022. The information in the Schedules is presented in accordance with the requirements of the Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Florida
Auditor General. Because the Schedules present only a selected portion of the operations of the City, it is
not intended to and does not present the financial position, changes in fund balance/net position, or cash
flows of the City.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedules are reported on the modified accrual basis of accounting for
expenditures accounted for in the governmental funds and on the accrual basis of accounting for
expenses of the proprietary fund types, which are described in Note 1 to the City's basic financial
statements. Such expenditures/expenses are recognized following the cost principles contained in the
Uniform Guidance and Chapter 10.550, Rules of the Florida Auditor General, wherein certain types of
expenditures/expenses are not allowable or are limited as to reimbursement. Negative amounts shown on
the Schedules represent adjustments or credits made in the normal course of business to amounts
reported as expenditures in prior years.
Note 3. Indirect Cost Recovery
The City has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
Note 4. Loans Outstanding
On November 12, 2014, the City of Miami Beach entered into the Clean Water State Revolving Fund
Loan Agreement with the State of Florida Department of Environment Protection. On November 24, 2020,
Amendment No.1 to the Loan Agreement was executed. The semiannual loan payment amount is based
on the total amount of $7,697,180, which consist of the Loan principal, accrued Capitalized Interest plus
the Loan Service Fee. Loan payments commenced on February 15, 2018, and semiannually thereafter on
August 15 and February 15 of each year until all amounts due have been fully paid. The interest rate on
this loan is 1.62% per annum. Loan disbursements from the State to the City will be made for
reimbursements of allowable costs. The loan is recorded as a loan payable in the governmental activities
of the City's government-wide statements. As of September 30, 2022, $7.5 million of allowable costs have
been incurred by the City and $7.5 million has been reimbursed from the State. The loan is secured by
the Stormwater fund's pledged revenues and will be repaid with such funds. The outstanding principal
balance reported at September 30, 2022, is $5,906,888, which consist of Loan Principal and Service Fee.
10
City of Miami Beach, Florida
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2022
Section I • Summary of Auditors' Results
Financial Statements
Type of report the auditor issued on whether the
financial statements audited were prepared in
accordance with GAAP:
Unmodified
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Noncompliance material to
financial statements noted?
Federal Awards
Internal control over major federal programs:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for
major federal programs:
Any audit findings disclosed that are required
to be reported in accordance with section
2 CFR 200.516(a)?
Identification of major federal programs:
Federal Assistance Listing No.
21.027
Dollar threshold used to distinguish between type
A and type B programs:
Auditee qualified as low-risk auditee?
Yes ---- Yes
Yes
Yes ---- Yes
X No ---- __ x __ Nonereported
X No
X No ---- __ x __ Nonereported
Unmodified
Yes X No
Name of Federal Program or Cluster
COVID-19 Coronavirus State and Local Fiscal Recovery
Funds
$874,840
Yes X No
(Continued)
11
City of Miami Beach, Florida
Schedule of Findings and Questioned Costs (Continued)
Fiscal Year Ended September 30, 2022
State Financial Assistance:
Internal control over major projects:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Yes ---- Yes
X No ---- x None reported ----
Type of auditor's report issued on compliance for
major projects:
Any audit findings disclosed that are required
to be reported in accordance with Chapter 10.550,
Rules of the Auditor General?
Unmodified
Yes X No
Identification of major state projects:
State Assistance Listing No. Name of State Project
55.000 A1A Indian Creek Corridor
Dollar threshold used to distinguish between type
A and type B projects: $750,000
Section II. Financial Statement Findings
No matters to report
Section Ill. Federal Awards and State Projects Findings and Questioned Costs
No matters to report.
12
City of Miami Beach, Florida
Summary Schedule of Prior Year Audit Findings
Fiscal Year Ended September 30, 2022
MIAMI BEACH
City Of Miami Bea ch, 1700 Convetnion Center Drive, Miami Beach, Florida 33139 www.miamibeachfl.gov
Summary of Prior Year Findings
Audit Finding Number: IC 2021-00 01 - Financial Reporting - Material Weakness
Audit Finding: Material accounting adjustments were made by management to the financial
statements to comply with generally accepted accounting principles. This included a material
adjustment to the Capital Pro jects fund and the Aggregate Non major Fund relating to a legal
settlement obligation. In addition, a material adjustment was made to the Convention Center fund to
eliminate intercom pany transactions between the City and the Conventi on Center .
Status of Finding: Corrected. Matter Not repeated.
13
EX H IB IT 8
Significant Written Communications Between
Management and Our Firm
M IA M I BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach. Florida 33139, wwy_miamibegchf].gov
April 14, 2023
RSM US LLP
3350 Virginia Street, 2 Floor
Coconut Grove, FL 33133
This representation letter is provided in connection with your audit of the basic financial statements of the
City of Miami Beach, Florida (the City) as of and for the year ended September 30, 2022 for the purpose
of expressing an opinion on whether the financial statements are presented fairly, in all material respects,
in accordance with accounting principles generally accepted in the United States of America (U.S.
GAAP).
We confirm, to the best of our knowledge and belief, that as of the date of this letter:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated
October 10, 2022, for the preparation and fair presentation of the financial statements referred to
above in accordance with US. 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 controls to
prevent and detect fraud.
4. The methods, data, and significant assumptions used by us in making accounting estimates and their
related disclosures are appropriate to achieve recognition, measurement, or disclosure that is
reasonable in the context of U.S. GAAP, and reflect our judgment based on our knowledge and
experience about past and current events, and our assumptions about conditions we expect to exist
and courses of action we expect to take.
5. The methods, assumptions and data used to measure the self-insurance liabilities are as follows, and
result in an estimate that is appropriate for financial statement measurement and disclosure purposes
and have been consistently selected and applied in making the estimate: the City utilizes the services
of various actuaries to assist in developing risk reserves for each of these liabilities. Significant
judgments made in making the estimate have taken into account all relevant information of which we
are aware. The assumptions listed above properly reflect our intent and ability to carry out the specific
courses of actions previously communicated to you on behalf of the City. We have also appropriately
considered alternative assumptions or outcomes. Appropriate specialized skills or expertise has been
applied in making the estimate. All disclosures related to the estimate, including disclosures
describing estimation uncertainty, are complete and reasonable in the context of U.S. GAAP. No
subsequent events have occurred that would require adjustment to the estimate and related
disclosures included in the financial statements.
6. The methods, assumptions and data used to measure the City's net OPEB liability and related OPEB
amounts, are as follows, and result in an estimate that is appropriate for financial statement
measurement and disclosure purposes and have been consistently selected and applied in making
the estimate: Entry Age Normal Cost Method, using fair market value for asset valuation, salary
increases of 3.5% per annum and inflation of 3% per annum. Significant judgments made in making
the estimate have taken into account all relevant information of which we are aware. The
assumptions listed above accurately reflect our intent and ability to carry out the specific courses of
actions previously communicated to you on behalf of the City. We have also appropriately considered
alternative assumptions or outcomes. Appropriate specialized skills or expertise has been applied in
making the estimate. All disclosures related to the estimate, including disclosures describing
estimation uncertainty, are complete and reasonable in the context of U.S. GAAP. No subsequent
events have occurred that would require adjustment to the estimate and related disclosures included
in the financial statements.
7. The methods, assumptions and data used to measure the City's pension plans' net pension liability
and related pension amounts are as follows, and result in an estimate that is appropriate for financial
statement measurement and disclosure purposes and have been consistently selected and applied in
making the estimate: Entry Age Normal Method, amortized using level dollar closed with an
investment rate of return of 7.4% for the General Employee retirement system and 7.55% for the
Firefighters and Police retirement system. Significant judgments made in making the estimate have
taken into account all relevant information of which we are aware. The assumptions listed above
accurately reflect our intent and ability to carry out the specific courses of actions previously
communicated to you on behalf of the City. We have also appropriately considered alternative
assumptions or outcomes. Appropriate specialized skills or expertise has been applied in making the
estimate. All disclosures related to the estimate, including disclosures describing estimation
uncertainty, are complete and reasonable in the context of U.S. GAAP. No subsequent events have
occurred that would require adjustment to the estimate and related disclosures included in the
financial statements.
8. The methods, assumptions and data used to estimate the valuation of lease liability, right of use
assets, lease receivable and deferred inflows are as follows, and result in an estimate that is
appropriate for financial statement measurement and disclosure purposes and have been
consistently selected and applied in making the estimate: if not directly stated in the lease agreement,
the City will evaluate the appropriate discount rate based upon the term of the lease and typical cost
of borrowing for the City for that period. Significant judgments made in making the estimate have
taken into account all relevant information of which we are aware. The assumptions listed above
accurately reflect our intent and ability to carry out the specific courses of actions previously
communicated to you on behalf of the City. We have also appropriately considered alternative
assumptions or outcomes. All disclosures related to the estimate, including disclosures describing
estimation uncertainty, are complete and reasonable in the context of U.S. GAAP. No subsequent
events have occurred that would require adjustment to the estimate and related disclosures included
in the financial statements.
9. Related-party transactions have been recorded in accordance with the economic substance of the
transaction and appropriately accounted for and disclosed in accordance with the requirements of
U.S. GAAP. Types of related party transactions engaged in by the City include:
a. Those with component units for which the City is accountable.
b. Those with 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.
c. lnterfund transactions, including interfund accounts and advances receivable and payable, sale
and purchase transactions, interfund transfers, long-term loans, leasing arrangements and
guarantees.
2
10. Th e financial statem ents pro perly cl assify all funds and activities in accordance w ith G A S B Statem ent
No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, as amended.
11. The City followed either its established accounting policy regarding which resources (that is,
restricted, committed, assigned or unassigned) are considered to be spent first for expenditures for
which more than one resource classification is available or followed paragraph 18 of GASB Statement
No. 54 to determine the fund balance classifications for financial reporting purposes.
12. The financial statements include all fiduciary activities required by GASB Statement No. 84, Fiduciary
Activities, as amended.
13. AII events subsequent to the date of the financial statements, and for which U.S. GAAP requires
adjustment or disclosure, have been adjusted or disclosed.
14. The effects of all known actual or possible litigation and claims have been accounted for and
disclosed in accordance with U.S. GAAP
15. Management has followed applicable laws and regulations in adopting, approving and amending
budgets.
16. Risk disclosures associated with deposit and investment securities and derivative transactions are
presented in accordance with GASB requirements.
17. Provisions for uncollectible receivables have been properly identified and recorded.
18. Capital assets, including infrastructure, intangible assets, and right of use assets are properly
capitalized, reported and, if applicable, depreciated.
19. The government properly separated information in debt disclosures related to direct borrowings and
direct placements of debt from other debt and disclosed any unused lines of credit, collateral pledged
to secure debt, terms in the debt agreements related to significant default or termination events with
finance-related consequences and significant subjective acceleration clauses in accordance with
GASB Statement No. 88.
20. Components of net position (net investment in capital assets, restricted, and unrestricted) and
classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned) are
properly classified and, if applicable, approved
21. Revenues are appropriately classified in the statement of activities within program revenues, general
revenues, contributions to term or permanent endowments, or contributions to permanent fund
principal.
22. Expenses have been appropriately classified in or allocated to functions and programs in the
statement of activities, and allocations have been made on a reasonable basis.
23. lnterfund, internal, and intra-entity activity and balances have been appropriately classified and
reported.
24. The City's policy regarding whether to first apply restricted or unrestricted resources when an
expense is incurred for purposes for which both restricted and unrestricted net position is available
and appropriately disclosed and that net position is properly recognized under the policy.
25. We have no direct or indirect legal or moral obligation for any debt of any organization, public or
private, or to special assessment bond holders, that is not disclosed in the financial statements.
26. 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.
3
27. We have reviewed the GASB Statements effective for the fiscal year ending September 30, 2022,
and concluded the implementation of the following Statements did not have a material impact on the
basic financial statements:
a. GASB Statement No. 91, Conduit Debt Obligations
b. GASB Statement No. 92, Omnibus
c. 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
28. We believe implementation of the GASB Statements listed below is appropriate:
a. GASB Statement No. 87, Leases - the implementation of this statement has a material impact in
the financial statements and related footnote disclosures, and we believe it has been properly
adopted.
29. We have no knowledge of any uncorrected misstatements in the financial statements.
30. We have requested an unsecured electronic copy of the auditor's report and basic financial
statements and agree that the auditor's report and basic financial statements will not be modified in
any manner.
Information Provided
31. We have provided you with:
a. Access to all information of which we are aware that is relevant to the preparation and fair
presentation of the basic financial statements such as records, documentation and other matters.
b. Additional information that you have 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.
32. All transactions have been recorded in the accounting records and are reflected in the basic financial
statements.
33. We have disclosed to you the results of our assessment of risk that the basic financial statements
may be materially misstated as a result of fraud.
34. It is our responsibility to establish and maintain internal control over financial reporting. One of the
components of an entity's system of internal control is risk assessment. We hereby represent that our
risk assessment process includes identification and assessment of risks of material misstatement due
to fraud. We have shared with you our fraud risk assessment, including a description of the risks, our
assessment of the magnitude and likelihood of misstatements arising from those risks, and the
controls that we have designed and implemented in response to those risks.
35. We have no knowledge of allegations of fraud or suspected fraud affecting the City's basic financial
statements involving:
a. Management.
b. Employees who have significant roles in internal control.
4
c. Others where the fraud could have a material effect on the basic financial statements.
36. We have no knowledge of any allegations of fraud or suspected fraud affecting the City's basic
financial statements received in communications from employees, former employees, analysts,
regulators, or others.
37. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations.
38. We have disclosed to you all known actual or possible litigation and claims whose effects should be
considered when preparing the financial statements.
39. We have disclosed to you the identity of all of the City's related parties and all the related-party
relationships and transactions of which we are aware.
40. We are aware of no deficiencies in internal control over financial reporting, including significant
deficiencies or 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.
41. There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
42. We agree with the findings of the specialists in evaluating our estimated liabilities for self-insurance,
other post-employment benefit obligations {OPEB), and the net pension liabilities (NPL) and have
adequately considered the qualifications of the specialists in determining the amounts and
disclosures used in the financial statements and underlying accounting records. We did not give
instructions, or cause any instructions to be given, to the specialists with respect to the values or
amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that
have had an impact on the independence or objectivity of the specialists.
43. We believe that the actuarial assumptions and methods used by the actuary for funding purposes and
for determining accumulated plan benefits are appropriate in the circumstances. We did not give
instructions, or cause any instructions to be given, to the actuary with respect to the values or
amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that
have had an impact on the independence or objectivity of the plan's actuary.
44. 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
45. With respect to supplementary information presented in relation to the basic financial statements as a
whole:
a. We acknowledge our responsibility for the presentation of such information.
b. We believe such information, including its form and content, is fairly presented in accordance with
U.S. GAAP.
c. The methods of measurement or presentation have not changed from those used in the prior
period.
d. When supplementary information is not presented with the audited basic financial statements, we
will make the audited basic financial statements readily available to the intended users of the
supplementary information no later than the date of issuance of the supplementary information
and the auditor's report thereon.
5
46. With respect to management's discussion and analysis, the pension plans and other post-
employment benefits fund schedules and the budgetary comparison information for the General
Fund, Resort Tax Fund and Miami Beach Redevelopment Agency Fund presented as required by
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. GAAP.
c. The methods of measurement or presentation have not changed from those used in the prior
period.
There are no underlying significant assumptions or interpretations regarding the measurement or
presentation of such information other than those disclosed in the schedules.
Compliance Considerations
In connection with your audit conducted in accordance with Government Auditing Standards, we confirm
that management:
47. Is responsible for the preparation and fair presentation of the financial statements in accordance with
the applicable financial reporting framework.
48. Is responsible for compliance with the laws, regulations and provisions of contracts and grant
agreements applicable to the auditee.
49. Is not aware of any instances of identified and suspected fraud and noncompliance with provisions of
laws, regulations, contracts, and grant agreements that have a material effect on the financial
statements.
50. 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.
51. Acknowledges its responsibility for the design, implementation and maintenance of controls to
prevent and detect fraud.
52. Has a process to track the status of audit findings and recommendations.
53. Has identified for the auditor previous audits, attestation engagements and other studies related to
the objectives of the audit and whether related recommendations have been implemented.
54. Is not aware of any investigations or legal proceedings that have been initiated with respect to the
period under audit.
55. Acknowledges its responsibilities as it relates to non-audit services performed by the auditor,
including that it assumes all management responsibilities; that it oversees the services by designating
an individual, preferably within senior management, who possesses suitable skill, knowledge or
experience; that it evaluates the adequacy and results of the services performed; and that it accepts
responsibility for the results of the services.
In connection with your audit of federal awards 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 state financial assistance under Chapter
10.550, Rules of the Auditor General and the Florida Single Audit Act, we confirm:
6
56 . M a nag e m e nt is respo nsib le fo r th e pre p a ratio n of the sc he d u le of exp e n d itu re s of fe d e ra l a w a rd s an d
state fina nc ia l assistance , ackno w le d g e s and un d e rsta nd s its res p o nsib ility fo r th e pre s e n ta tio n of the
sche dule of ex pe nd itures of fed e ra l aw a rds and sta te fi n a nc ia l assista n c e in ac c o rda n c e w ith th e
U n ifo rm G u ida nce and F lo rid a S in g le A ud it A ct; be lie ve s the sche d u le of ex p e n d itu re s of fe d e ra l
aw ards, incl u d ing its fo rm an d co n te nt, is fa irly pre se nted in acco rda n ce w ith the U n ifo rm G u id a n c e ,
Fl o rida S ing le A ud it A ct and C ha p te r 10 .5 5 0 , Rules of the Auditor General; 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 awards and state financial
assistance.
The City of Miami Beach, Florida
==== Chief Financial Officer
6 2
7
M IA MI BEACH
City ot Miami Beach, 17OO Con ven tion Cent er Drive, Mi ami Beach , Florida 33139, www._miamib each fl.gov
April 20, 2023
RSM US LLP
3350 Virginia Street, 2"° Floor
Coconut Grove, FL 33133
In connection with your audit of federal awards 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) 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, 2022 for the City of Miami Beach, Florida, we confirm:
1. Management is responsible for complying, and has complied, with the requirements of Uniform
Guidance and Chapter 10.550, Rules of the Auditor General.
2. Management is responsible for understanding and complying with the requirements of federal
statutes, regulations, and the terms and conditions of federal awards related to each of its federal
program and state projects.
3. Management is responsible for the design, implementation, and maintenance of, and has designed,
implemented and maintained, effective internal control over compliance with federal programs and
state projects that provides reasonable assurance that the auditee is managing federal awards and
state financial assistance in compliance with federal and state statutes, regulations, and the terms
and conditions of the federal awards and state financial assistance that could have a material effect
on its federal program and state projects.
4. Management is responsible for the preparation of the schedule of expenditures of federal awards
and schedule of expenditures of state financial assistance, acknowledges and understands its
responsibility for the presentation of the schedule of expenditures of federal awards and schedule
of expenditures of state financial assistance in accordance with the Uniform Guidance and Florida
Single Audit Act; believes the schedule of expenditures of federal awards and schedule of
expenditures of state financial assistance, including their form and content, are fairly presented in
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accordance with the Uniform Guidance and Chapter 10.550, Rules of the Auditor General; 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 awards and schedule of expenditures of state financial assistance.
5. 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
awards and schedule of expenditures of state financial assistance and the auditor's report thereon.
6. Management has identified and disclosed all of its government programs and related activities
subject to the Uniform Guidance and Chapter 10.550, Rules of the Auditor General compliance
audit.
7. Management has identified and disclosed to the auditor the requirements of federal and state
statutes, regulations, and the terms and conditions of federal and state financial assistance that are
considered to have a direct and material effect on each major program and state project.
8. Management has made available all federal and state financial assistance (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.
9. Management has identified and disclosed to the auditor all amounts questioned and all known
noncompliance with the direct and material compliance requirements of federal and state financial
assistance or stated that there was no such noncompliance.
10. Management believes that the auditee has complied with the direct and material compliance
requirements.
11. Management has made available all documentation related to compliance with the direct and
material compliance requirements, including information related to federal program and state
project financial reports and claims for advances and reimbursements.
R S M U S L L P
P a g e 3
1 2 . M a n a g e m e n t is a w a r e o f n o co m m u n ic a t io n s fr o m f e d e r a l a n d s t a t e a w a r d i n g a g e n ci e s a n d p a s s -
t h r o u g h e n t it ie s c o n c e rn i n g p o s s ib le n o n co m p li a n c e w it h t h e d i r e c t a n d m a t e r ia l co m p li a n c e
r e q u ir e m e n t s , in cl u d i n g co m m u n ic a t io n s r e c e iv e d fr o m t h e e n d o f t h e p e r io d c o v e r e d b y t h e
c o m p li a n c e a u d it t o t h e d a t e o f t h e a u d it o r's r e p o rt .
1 3 . There are no findings and related corrective actions taken for previous audits, attestation
engagements, and internal or external monitoring that directly relate to the objectives of the
compliance audit, including findings received and corrective actions taken from the end of the
period covered by the compliance audit to the date of the auditor's report.
14. Management is responsible for taking corrective action on audit findings of the compliance audit
and has developed a corrective action plan that meets the requirements of the Uniform Guidance
and Chapter 10.550, Rules of the Auditor General.
15. Management has provided the auditor with all information on the status of the follow-up on prior
audit findings by federal and state awarding agencies and pass-through entities, including all
management decisions.
16. There are no subsequent events that provide additional evidence with respect to conditions that
existed at the end of the reporting period that affect noncompliance during the reporting period.
17. Management has disclosed all known noncompliance with direct and material compliance
requirements occurring subsequent to the period covered by the auditor's report or stated that
there were no such known instances.
18. Management has disclosed whether any changes in internal control over compliance or other
factors that might significantly affect the entity's system of internal control, including any corrective
action taken by management with regard to significant deficiencies and material weaknesses in
internal control over compliance, have occurred subsequent to the period covered by the auditor's
report.
19. Federal 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.
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20. The copies of federal program and state project financial reports provided to the auditor are true
copies of the reports submitted, or electronically transmitted, to the federal agency or pass-through
entity, as applicable.
21. Management has monitored subrecipients, as necessary, to determine that they have expended
subawards in compliance with federal statutes, regulations, and the terms and conditions of the
subaward and have met the other pass-through entity requirements of the Uniform Guidance and
Florida Single Audit Act.
22. Management has issued management decisions for audit findings that relate to federal and state
financial assistance it makes to subrecipients and such management decisions are issued within six
months of acceptance of the audit report by the FAC. Additionally, management has followed up to
ensure that the subrecipient takes timely and appropriate action on all deficiencies detected
through audits, on-site reviews and other means that pertain to the federal and state award
provided to the subrecipient from the pass-through entity.
23. Management has considered the results of sub recipient monitoring and audits, and has made any
necessary adjustments to the auditee's own books and records.
24. Management has charged costs to federal and state financial assistance in accordance with
applicable cost principles.
25. Management is responsible for, and has accurately prepared, the summary schedule of prior audit
findings to include all findings required to be included by Uniform Guidance and Chapter 10.550,
Rules of the Auditor General.
26. The reporting package does not contain protected personally identifiable information.
27. Management has accurately completed the appropriate sections of the data collection form
28. Management has disclosed all contracts or other agreements with service organizations.
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29. We have requested an unsecured electronic copy of the single audit reporting package including the
auditor's reports and agree that the auditor's reports and the other components of single audit
reporting package will not be modified in any manner.
30. 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
P a g e 6
City of Miami Beach, Florida
City Manager
Chief Financial Officer
Vvie Greene
Assistant Finance Director
MIAMI B EAC H
City of M iam i Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeochfl.gov
April 20, 2023
RSM US LLP
3350 Virginia Street, 24 Floor
Coconut Grove, FL 33133
In connection with your examination of the City of Miami Beach, Florida's (the City) compliance with
Section 218.415, Florida Statutes, Local Government Investment Policies (the Specified Requirements)
during the period from October 1, 2021 to September 30, 2022, 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 assert that, during the period from October 1, 2021, to September 30, 2022, the City was in
compliance with the Specified Requirements.
2. We assert that, as of September 30, 2022, the City had effective internal control over compliance with
the Specified Requirements.
3. All relevant matters are reflected in the measurement or evaluation of the compliance with the
Specified Requirements.
4. There are no known matters contradicting the compliance with the Specified Requirements or our
assertion nor any communication from regulatory agencies affecting the compliance with the
Specified Requirements or our assertion.
5. We are responsible for the City's compliance with the Specified Requirements, for our assertion and
for establishing and maintaining effective internal control over the City's compliance with the Specified
Requirements.
a. We understand that we are responsible for the selection of the criteria against which the
compliance with the Specified Requirements is being evaluated. The criteria are contained in
Section 218.415, Florida Statutes, Local Government Investment Policies.
6. We understand that we are responsible for determining that such criteria are suitable, will be available
to the intended users, and are appropriate for the purpose of your engagement.
7. We have performed an evaluation of the City's compliance with the Specified Requirements. Based
on our evaluation, the City has complied with the Specified Requirements during the period from
October 1, 2021 to September 30, 2022 based on the abovementioned criteria.
8. No events or transactions have occurred subsequent to September 30. 2022 that would have a
material effect on the City's compliance with the Specified Requirements.
9 We have made available to you all documentation related to the City's compliance with the Specified
Requirements as agreed upon in the terms of the engagement.
10. We have responded fully to all inquiries made to us by you during your engagement.
R S M U S L L P
P a g e 2
1 1 . Th er e h a s b e e n n o d e fi c ie n c ie s in in t e rn a l c o n t ro l re le v a n t to y o u r e n g a g e m e n t o f w h ic h w e a r e
a w a r e .
1 2 . T h e r e h a s b e e n n o k n o w le d g e o f fr a u d o r s u s p e c te d fr a u d a ff e c t in g th e C ity in v o lv in g :
a . M a n a g e m e n t .
b . E m p lo y e e s w h o h a v e s ig n if ic a n t r o le s in in t e rn a l c o n t r o l.
c . Ot h e r s w h e r e fr a u d c o u ld h a v e a m a t e r ia l e ff e c t o n th e C ity 's c o m p lia n c e w it h th e S p e c if ie d
R e q u ir e m e n t s .
1 3 . W e a c k n o w le d g e o u r r e s p o n s ib ility fo r th e d e s ig n a n d im p le m e n t a t io n o f p r o g r a m s a n d c o n t r o ls to
p r o v id e r e a s o n a b le a s s u r a n c e th a t f r a u d is p r e v e n te d a n d d e te c t e d .
1 4 . W e h a v e n o k n o w le d g e o f a n y a ll e g a t io n s o f fr a u d o r s u s p e c te d fr a u d a ff e c t in g th e C ity re c e iv e d in
c o m m u n ic a t io n s f ro m e m p lo y e e s , fo r m e r e m p lo y e e s , a n a ly s t s , re g u la t o r s , s h o rt s e ll e r s o r o t h e r s .
1 5 . T h e r e h a s b e e n n o k n o w n n o n c o m p lia n c e w it h th e S p e c ifi e d R e q u ir e m e n ts d u r in g th e p e r io d f r o m
O ct ob er 1 , 2 0 2 1 , to S ep t em b er 3 0 , 2 0 2 2, o r th ro u g h th e d a te o f th is le tt e r .
1 6 . T h e r e a r e n o k n o w n c o m m u n ic a t io n s fr o m r e g u la t o ry a g e n c ie s , in te rn a l a u d ito r s o r o t h e r p r a c tit io n e r s
c o n c e rn in g th e C ity 's p o s s ib le n o n c o m p lia n c e w it h th e S p e c ifi e d R e q u ir e m e n ts re c e iv e d b y u s d u r in g
th e p e r io d fr o m O ct ob er 1 , 2 0 2 1 to S e p t e m b e r 3 0 , 2 0 2 2 o r th ro u g h th e d a t e o f th is le tt e r .
1 7 . D u r in g th e c o u r s e o f y o u r e n g a g e m e n t , y o u m a y h a v e a c c u m u la t e d re c o r d s c o n t a in in g d a t a th a t
s h o u ld b e r e fl e c t e d in o u r b o o k s a n d r e c o r d s . A ll s u c h d a t a h a v e b e e n s o re f le c te d . A c c o r d in g ly ,
c o p ie s o f s u c h r e c o r d s in y o u r p o s s e s s io n a r e n o lo n g e r n e e d e d b y u s .
T h e C ity o f M ia m i B e a c h , F lo r id a
A~---
Chief Financial Officer
Finance Director
M I A~?
VISITOR A.ND
BEA CONVENTION
' A U TH OR IT Y
April 17, 2023
RSM US LLP
3350 Virginia Street, 24 Floor
Coconut Grove, FL 33133
This representation letter is provided in connection with your audit of the governmental activities and the
major fund of Miami Beach Visitor and Convention Authority (the Authority), a component unit of the City
of Miami Beach, Florida (the City), and the related notes to the financial statements as of and for the year
ended September 30, 2022, for the purpose of expressing an opinion on whether the financial statements
are presented fairly, in all material respects, in accordance with accounting principles generally accepted
in the United States of America (U.S. GAAP).
We confirm, to the best of our knowledge and belief, that as of the date of this letter:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated
October 10, 2022 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 controls to
prevent and detect fraud.
4. The methods, data, and significant assumptions used by us in making accounting estimates and their
related disclosures are appropriate to achieve recognition, measurement, or disclosure that is
reasonable in the context of U.S. GAAP, and reflect our judgment based on our knowledge and
experience about past and current events, and our assumptions about conditions we expect to exist
and courses of action we expect to take.
5. The methods, assumptions and data used to make accounting estimates are as follows, and result in
an estimate that is appropriate for financial statement measurement and disclosure purposes and
have been consistently selected and applied in making the estimate. Significant judgments made in
making the estimate have taken into account all relevant information of which we are aware. All
disclosures related to the estimate, including disclosures describing estimation uncertainty, are
complete and reasonable in the context of U.S. GAAP. No subsequent events have occurred that
would require adjustment to the estimate and related disclosures included in the financial statements.
6. Related-party transactions have been recorded in accordance with the economic substance of the
transaction and appropriately accounted for and disclosed in accordance with the requirements of
U.S. GAAP. Types of related party transactions engaged in by the City and the Authority include:
a. Those with the primary government having accountability for the Authority.
1701 Meridian Avenue • Suite 403 Miami Beach, Florida 33139 www.miamibeachvca.com Tel: 305-673-7050 Fax: 305-673-7282
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b. Those with component units for which the City & Authority are accountable.
c. Those with other organizations for which the nature and significance of their relationship with the
Authority are such that exclusion would cause the reporting entity's financial statements to be
misleading or incomplete.
d. lnterfund transactions, including interfund accounts and advances receivable and payable, sale
and purchase transactions, interfund transfers, long-term loans, leasing arrangements and
guarantees.
7. The financial statements properly classify all funds and activities in accordance with GASS Statement
No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, as amended.
8. The Authority followed either its established accounting policy regarding which resources (that is,
restricted, committed, assigned or unassigned) are considered to be spent first for expenditures for
which more than one resource classification is available or followed paragraph 18 of GASS Statement
No. 54 to determine the fund balance classifications for financial reporting purposes.
9. The financial statements include all fiduciary activities required by GASS Statement No. 84, Fiduciary
Activities, as amended.
10. 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.
11. The effects of all known actual or possible litigation and claims have been accounted for and
disclosed in accordance with U.S. GAAP.
12. Management has followed applicable laws and regulations in adopting, approving and amending
budgets.
13. Capital assets, including infrastructure, intangible assets, and right of use assets are properly
capitalized, reported and, if applicable, depreciated.
14. Components of net position (net investment in capital assets, restricted, and unrestricted) and
classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned) are
properly classified and, if applicable, approved
15. Revenues are appropriately classified in the statement of activities within program revenues, general
revenues, contributions to term or permanent endowments, or contributions to permanent fund
principal.
16. Expenses have been appropriately classified in or allocated to functions and programs in the
statement of activities, and allocations have been made on a reasonable basis.
17. Interfund, internal, and intra-entity activity and balances have been appropriately classified and
reported.
18. The Authority's policy regarding whether to first apply restricted or unrestricted resources when an
expense is incurred for purposes for which both restricted and unrestricted net position is available
and appropriately disclosed and that net position is properly recognized under the policy.
R S M U S L L P
P a g e 3
1 9 . W e h a v e n o d ir e c t o r in d ir e c t le g a l o r m o r a l o b li g a t io n fo r a n y d e b t o f a n y o r g a n iz a t io n , p u b lic o r
p r iv a t e , t h a t is n o t d i s c lo s e d in t h e fi n a n c ia l s t a t e m e n t s .
2 0 . W e h a v e c o m p lie d w it h a ll a s p e c t s o f la w s , r e g u la t io n s a n d p r o v is io n s o f c o n t r a c t s a n d a g r e e m e n t s
t h a t w o u l d h a v e a m a t e r ia l e ff e c t o n t h e fi n a n c ia l s t a t e m e n t s in t h e e v e n t o f n o n c o m p lia n c e
Information Provided
21. We have provided you with:
a. Access to all information of which we are aware that is relevant to the preparation and fair
presentation of the financial statements such as records, documentation and other matters.
b. Additional information that you have requested from us for the purpose of the audit.
c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain
audit evidence.
d. Minutes of the meetings of the governing board and committees, or summaries of actions of
recent meetings for which minutes have not yet been prepared.
22. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
23. 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.
24. It is our responsibility to establish and maintain internal control over financial reporting. One of the
components of an entity's system of internal control is risk assessment. We hereby represent that our
risk assessment process includes identification and assessment of risks of material misstatement due
to fraud. We have shared with you our fraud risk assessment, including a description of the risks, our
assessment of the magnitude and likelihood of misstatements arising from those risks, and the
controls that we have designed and implemented in response to those risks.
25. We have no knowledge of allegations of fraud or suspected fraud affecting the financial statements
involving:
a. Management.
b. Employees who have significant roles in internal control.
c. Others where the fraud could have a material effect on the [primary government] [basic] financial
statements.
26. We have no knowledge of any allegations of fraud or suspected fraud affecting the financial
statements received in communications from employees, former employees, analysts, regulators, or
others.
27. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations.
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28. We are not aware of any pending or threatened litigation and claims whose effects should be
considered when preparing the financial statements. We have not consulted legal counsel concerning
litigation or claims.
29. We have disclosed to you the identity of all of the Authority's related parties and all the related-party
relationships and transactions of which we are aware.
30. We are aware of no deficiencies in internal control over financial reporting, including significant
deficiencies or 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.
31. There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
32. We agree with the findings of the specialists in evaluating other post-employment benefit obligations
(OPEB), and the net pension liabilities (NPL) and have adequately considered the qualifications of the
specialists in determining the amounts and disclosures used in the financial statements and
underlying accounting records. We did not give instructions, or cause any instructions to be given, to
the specialists with respect to the values or amounts derived in an attempt to bias their work, and we
are not otherwise aware of any matters that have had an impact on the independence or objectivity of
the specialists.
33. We believe that the actuarial assumptions and methods used by the actuary for funding purposes and
for determining accumulated plan benefits are appropriate in the circumstances. We did not give
instructions, or cause any instructions to be given, to the actuary with respect to the values or
amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that
have had an impact on the independence or objectivity of the plan's actuary.
34. 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.
35. With respect to the management's discussion and analysis, the pension plan and other
postemployment benefits fund schedules and the budgetary comparison information for the General
Fund presented as required by the Government Accounting Standards Board (GASS) 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
d. There are no underlying significant assumptions or interpretations regarding the measurement or
presentation of such information other than those disclosed in the schedules.
Compliance Considerations
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In connection with your audit conducted in accordance with Government Auditing Standards, we confirm
that management:
36. Is responsible for the preparation and fair presentation of the financial statements in accordance with
the applicable financial reporting framework.
37. Is responsible for compliance with the laws, regulations and provisions of contracts and grant
agreements applicable to the auditee.
38. Is not aware of any instances of identified and suspected fraud and noncompliance with provisions of
laws, regulations, contracts, and grant agreements that have a material effect on the financial
statements.
39. 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.
40. Acknowledges its responsibility for the design, implementation and maintenance of controls to
prevent and detect fraud.
41. Has taken timely and appropriate steps to remedy identified or suspected fraud or noncompliance
with provisions of laws, regulations, contracts, and grant agreements that the auditor reports.
42. Has a process to track the status of audit findings and recommendations.
43. Is not aware of any investigations or legal proceedings that have been initiated with respect to the
period under audit.
44. Acknowledges its responsibilities as it relates to non-audit services performed by the auditor,
including that it assumes all management responsibilities; that it oversees the services by designating
an individual, preferably within senior management, who possesses suitable skill, knowledge or
experience; that it evaluates the adequacy and results of the services performed; and that it accepts
responsibility for the results of the services.
Miami Beach Visitor & Convention Authority
ami Beach Visitor and Convention Authority
eta. kt. stoner Rt5
Chair, Miami Beach Visitor and Convention Authority Board of Directors
EXH IB IT C
Recent Accounting Pronouncements
R E C E N T A C C O U N T IN G P R O N O U N C E M E N T S
The following accounting pronouncements have been issued as of Ap ril 14, 2023 but are not yet effective
and may affect the future financial reporting by the City.
• GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability
Payment Arrangements. This Statement will improve financial reporting by establishing
the definitions of public-private and public-public partnership arrangements (PPPs) and
availability payment arrangements (A P A s) and providing uniform guidance on accounting
and financial reporting for transactions that meet those definitions. This Statement is
effective for the fiscal year ending September 30, 2023.
• GASB Statement No. 96, Subscription-Based Information Technology Arrangements.
This Statement provides guidance on the accounting and financial reporting for
subscription-based information technology arrangements (SBITAs) for government end
users (governments). This Statement is effective for the fiscal year ending September 30,
2023.
• GASB Statement No. 99, Omnibus 2022. The requirements of this Statement will
enhance comparability in the application of accounting and financial reporting
requirements and will improve the consistency of authoritative literature. Consistent
authoritative literature enables governments and other stakeholders to more easily locate
and apply the correct accounting and financial reporting provisions, which improves the
consistency with which such provisions are applied. The comparability of financial
statements also will improve as a result of this Statement. Better consistency and
comparability improve the usefulness of information for users of state and local
government financial statements. The requirements related to leases, public-private and
public-public partnerships, and subscription-based information technology arrangements
are effective for the fiscal year ending September 30, 2023. The requirements related to
financial guarantees and the classification and reporting of derivative instruments within
the scope of Statement 53 are effective for the fiscal year ending September 30, 2024.
• GASB Statement No. 100, Accounting Changes and Error Corrections. The
requirements of this Statement will improve the clarity of the accounting and financial reporting
requirements for accounting changes and error corrections, which will result in
greater consistency in application in practice. In turn, more understandable, reliable,
relevant, consistent, and comparable information will be provided to financial statement
users for making decisions or assessing accountability. In addition, the display and note
disclosure requirements will result in more consistent, decision useful, understandable, and
comprehensive information for users about accounting changes and error corrections. This
Statement is effective for the fiscal year ending September 30, 2024.
GASB Statement No. 101, Compensated Absences. The unified recognition and
measurement model in this Statement will result in a liability for compensated absences
that more appropriately reflects when a government incurs an obligation. In addition, the
model can be applied consistently to any type of compensated absence and will eliminate
potential comparability issues between governments that offer different types of leave. The
model also will result in a more robust estimate of the amount of compensated absences
that a government will pay or settle, which will enhance the relevance and reliability of
information about the liability for compensated absences. This Statement is effective for
the fiscal year ending September 30, 2025.