GovernmentWideandFundFinancialStatements

Nel documento The City of. Aventura, FLORIDA. $QQXDO Comprehensive Financial Report For The Fiscal Year Ended September 30, 202 (pagine 45-77)

NOTESTOBASICFINANCIALSTATEMENTS

B. GovernmentWideandFundFinancialStatements

B. GovernmentWideandFundFinancialStatements



services provided and used has been eliminated from these statements. Governmental activities,

which normally are supported by taxes and intergovernmentalrevenues,arereportedseparately

frombusinessͲtypeactivities,whichrelytoasignificantextentonfeesandchargesforservices.



ThegovernmentͲwidestatementofactivitiesdemonstratesthedegreetowhichthedirectexpenses

ofagivenfunctionorsegmentisoffsetbyprogramrevenues.Directexpensesarethoseexpensesthat

areclearlyidentifiablewithaspecificfunctionorsegment.Programrevenuesinclude:1)chargesto

customers or applicants who purchase, use or directly benefit from goods, services or privileges

providedbyagivenfunctionorsegmentand2)grantsandcontributionsthatarerestrictedtomeeting

Separate fund financial statements are provided for governmental funds, proprietary funds and

fiduciaryfunds,eventhoughthelatterareexcludedfromthegovernmentͲwidefinancialstatements.

Thefocusoffundfinancialstatementsisonmajorfunds.Majorindividualgovernmentalfundsand

the major individual enterprise funds are reported as separate columns in the fund financial

statements. GASB Statement No. 34 sets forth minimum criteria (percentage of assets/deferred

outflows,liabilities/deferredinflows,revenuesorexpenditures/expensesofeitherfundcategoryfor

the governmental and enterprise, combined, or funds that management deems of public

importance)forthedeterminationofmajorfunds.Thenonmajorfundsarecombinedandpresented

inasinglecolumninthefundfinancialstatements.



ThegovernmentͲwideͲfocusismoreonthesustainabilityoftheCityasanentityandthechangein

aggregatefinancialpositionresultingfromtheactivitiesofthefiscalperiod.Thefocusofthefund

financial statements is on the major individual funds of the governmental and businessͲtype

categories,(bycategory).Eachpresentationprovidesvaluableinformationthatcanbeanalyzedand

comparedtoenhancetheusefulnessoftheinformation.



C. MeasurementFocus,BasisofAccountingandFinancialStatementPresentation



ThegovernmentͲwidefinancialstatementsarereportedusingtheeconomicresourcesmeasurement

focus and the accrual basis of accounting, as are the proprietary and fiduciary fund financial

statements. Revenues are recorded when earned and expenses are recorded when a liability is

incurred,regardlessofthetimingofrelatedcashflows.Propertytaxesarerecognizedasrevenuesin

theyearwhenanenforceablelienexistsandwhenleviedfor.Grantsandsimilaritemsarerecognized

asrevenuesassoonasalleligibilityrequirementsimposedbytheproviderhavebeenmet.

CityofAventura,Florida

Governmental fund financial statements are reported using the current financial resources

measurementfocusandthemodifiedaccrualbasisofaccounting.Revenuesarerecognizedassoon

related to compensated absences, pension, other postemployment benefits and claims and

judgments,arerecordedonlywhendue.



Property taxes, when levied for, franchise fees, utility taxes, charges for services, impact fees,

intergovernmental revenues when eligibility requirements are met and investment income

associated with the current fiscal period are all considered to be measurable and have been

recognizedasrevenuesofthecurrentfiscalperiod,ifavailable.Allotherrevenueitemssuchasfines

The principal operating revenues of the proprietaryfundarechargestocustomersforsalesand

services. Operating expenses for proprietary funds include the costs of sales and services,

administrativeexpensesanddepreciationoncapitalassets.Allrevenuesandexpensesthatdonot



This fund accounts for the activities of the Police Officers' Retirement Plan that accumulates

resourcesforpensionbenefitstoqualifyingpoliceofficers.



The financial statements of the City have been prepared in accordance with generally accepted

accounting principles (GAAP) as applied to governmental units. The Governmental Accounting

Standards Board (GASB) is the standard setting body for governmental accounting and financial

reporting. The financial statements of the City follow the guidance of GASB Statement No. 62,

CodificationofAccountingandFinancialReportingGuidanceContainedinPreͲNovember30,1989

FASB and AICPA Pronouncements for both the government wide and proprietary fund financial

statements.GovernmentsalsohavetheoptionoffollowingsubsequentFASBpronouncementsfor

applicants for goods, servicesorprivilegesprovided,2)operatinggrantsandcontributionsand3)

capitalgrants and contributions. Internally dedicated resources are reported as general revenues

ratherthanasprogramrevenues.Likewise,generalrevenuesincludealltaxes.

1. Cash,cashequivalentsandinvestmentsͲCashandcashequivalentsaredefinedasdemand

deposits,moneymarketaccountsandothershortͲterminvestmentswithoriginalmaturities

ofthreemonthsorlessfromthedateofacquisition.



Ingeneral,theCitymaintainsapooledcashaccountforallfunds.ThisenablestheCityto

investlargeamountsofidlecashforshortperiodsoftimeandtooptimizeearningspotential.

Cash, cash equivalents and investments represent the amount owned by each City fund.

Resources of all funds, with the exception of the pension fund, are also combined into

investmentpoolsforthepurposeofmaximizinginvestmentyields.Earningsonpooledcash

andinvestmentsareallocatedmonthlybasedonbalancesoftherespectivefunds.



The City's investments are reported at their estimated fair value except for the City's

investmentintheFloridaPRIMEwhichisrecorded/valuedattheamortizedcostmethod.



Thepensionplan'sinvestmentsarereportedatestimatedfairvalue.

CityofAventura,Florida

2. Receivables and payables Ͳ Activities between funds that are representative of

lending/borrowingarrangementsoutstandingattheendofthefiscalyeararereferredtoas

3. Prepaidexpenses/expendituresͲCertainpaymentstovendorsreflectcostsapplicabletoa

futureaccountingperiodandarerecordedasprepaiditemsinbothgovernmentͲwideand

fundfinancialstatements.



4. InventoriesͲInventoriesheldforresalearereportedatthelowerofcost(firstͲin,firstͲout)

ormarket.Inventoriesofsuppliesarereportedatcost.Theseamountsaretypicallyreported

as nonspendable in governmental fund financial statements. Inventory (supplies) is

accounted for using the consumption method whereby inventories are recorded as

expenditureswhentheyareused.



5. CapitalassetsͲCapitalassetspurchasedoracquiredwithanoriginalcostof$5,000ormore

arereportedathistoricalcostorestimatedhistoricalcost.Donatedcapitalassets,donated

works of art and similar items, and capital assets received in a service concession

arrangementarereportedatacquisitionvalue.Additions,improvementsandothercapital

outlaysthatsignificantlyextendtheusefullifeofanassetarecapitalized.Othercostsincurred

forrepairsandmaintenanceareexpensedasincurred.Depreciationonallassetsisprovided

onthestraightͲlinebasisoverthefollowingestimatedusefullives:



 Buildings 25years

 Improvementsotherthanbuildings 20Ͳ30years

 Infrastructure 20Ͳ40years

 Furniture,machineryandequipment 3Ͳ20years



Within governmental funds, amounts incurred for the acquisition of capital assets are

reported as fund expenditures. Depreciation expense is not reported within the

governmentalfundfinancialstatements.



6. Deferred outflows/inflows of resources Ͳ In addition to assets, the statement of financial

positionwillsometimesreportaseparatesectionfordeferredoutflowsofresources.This

separate financial statement element, deferred outflows of resources, represents a

consumptionofnetassetsthatappliestoafutureperiod(s)andsowillnotberecognizedas

an outflow of resources (expense/expenditure) until then. The City has pension related

amounts, postͲemployment benefits other than pension (OPEB), and deferred charge on



pension and OPEB related amounts that qualify for reporting in this category on the

governmentͲwidestatementofnetposition.



Unavailablerevenues,onthefundfinancialstatements,consistofutilityservicetaxesand

intergovernmental revenues. These amounts are deferred and recognized as an inflow of

resourcesintheperiodthattheamountsbecomeavailable.



7. Compensated absences payable Ͳ The City's sick leave policy permits employees to

accumulate earned but unused sick pay benefits. Upon termination, sick pay is paid out,

between0Ͳ100%basedonlengthofservice.

fund financial statements when earned. Expenditures for accumulated compensated

absenceshavebeenrecordedinthegovernmentalfundsonlyiftheyhavematured,(e.g.,

resultingfromemployeeresignationsandretirements).Paymentsaregenerallypaidoutof

theGeneralFund.



8. LongͲtermobligationsͲInthegovernmentͲwidefinancialstatementsandproprietaryfund

typeinthefundfinancialstatements,longͲtermdebtandotherlongͲtermobligationsare

reported as liabilities in the applicable governmental activities, businessͲtype activities or

proprietaryfundtypestatementofnetposition.Bondpremiumsanddiscountsaredeferred

andamortizedoverthelifeofthebondsusingthestraightͲlinemethod,whichapproximates

theeffectiveinterestmethod.Bondissuecostsareexpensedatissuance.Bondspayableare

reportednetoftheapplicablepremiumsanddiscounts,ifapplicable.



In the fund financial statements, governmental fund types recognize bond premiums and

discounts,aswellasdebtissuancecosts,duringthecurrentperiod.Thefaceamountofdebt

issued is reported as other financing sources. Premiums received on debt issuances are

reportedasotherfinancingsourceswhilediscountsondebtissuancesarereportedasother

financing uses. Issuance costs, whether or not withheld from the actual debt proceeds

received,andprincipalpayments,arereportedasdebtserviceexpenditures.



9. NetpositionͲNetpositioninthegovernmentͲwideandproprietaryfundsiscategorizedas

netinvestmentincapitalassets;restrictedorunrestricted.Netinvestmentincapitalassets,

isthedifferencebetweenthecostofcapitalassets,lessaccumulateddepreciation,reduced

by the outstanding balances of any borrowings used for the acquisition, construction or

improvementofthoseassets;anddeferredinflowsandoutflowsofresourcesrelatedtodebt;

CityofAventura,Florida

be made about the order in which the resources are considered to be applied. It is the

government’s policy to consider restricted – net position to have been depleted before

unrestricted–netpositionisapplied.



10. Fund balance Ͳ The City follows GASB Statement No. 54, Fund Balance Reporting and

Governmental Fund Type Definitions which requires that governmental fund financial

statementspresentfundbalancesbasedonclassificationsthatcompriseahierarchythatis

basedprimarilyontheextenttowhichtheCityisboundtohonorconstraintsonthespecific

purposes for which amounts in the respective governmental funds can be spent. The

classificationsusedinthegovernmentalfundfinancialstatementsareasfollows:



NonspendableͲThisclassificationincludesamountsthatcannotbespentbecausethey

are either (a) not in spendable form or (b) are legally or contractually required to be

maintainedintact.“Notinspendableform”includesitemsthatarenotexpectedtobe

convertedtocash(suchasinventoriesandprepaidamounts)anditemssuchaslongͲterm

amountofloansandnotesreceivable,aswellaspropertyacquiredforresale.Thecorpus

(or principal) of a permanent fund is an example of an amount that is legally or

contractuallyrequiredtobemaintainedintact.

purposes determined by a formal action of thegovernment’s highest level of decision

making. The City Commission is the highest level of decisionͲmaking authority for the

government that can, by adoption of an ordinance prior to the end of the fiscal year,

commitfundbalance.Onceadopted,thelimitationimposedbytheordinanceremainsin

placeuntilasimilaractionistaken(theadoptionofanotherordinance)toremoveorrevise

thelimitation.



AssignedͲThisclassificationincludesamountsthatareconstrainedbytheCity’sintentto

be used for a specific purpose but are neither restricted nor committed. The City

CommissionhasbyresolutionauthorizedtheCityManagertoassignfundbalance.The



Flow assumption: The City considers restricted amounts to be spent first when both

restricted and unrestricted fund balance is available unless there are legal

documents/contracts that prohibit doing this, such as in grant agreements requiring

dollarfordollarspending.Additionally,theCitywouldfirstusecommittedfundbalance,

followedbyassignedfundbalanceandthenunassignedfundbalancewhenexpenditures

are incurred for purposes for which amounts in any of the unrestricted fund balance

classificationscouldbeused.



11. FundbalancepoliciesͲTheCity’spolicyistomaintainanadequateGeneralFundbalanceto

meet seasonal shortfalls in cash flow and reduce susceptibility to emergency and

unanticipatedexpendituresand/orrevenueshortfalls.

period beginning with the year from which the reserve funds fell below the 10%

threshold.

into. Encumbrances outstanding at yearͲend represent the estimated amount of

expenditureswhichwouldresultifunperformedpurchaseordersandothercommitmentsat

yearͲend are completed. Encumbrances lapse at yearͲend; however, the City generally

intends to honor purchase orders and other commitments in process. As a result,

encumbrancesoutstandingatyearͲendarereͲappropriated,attheCityManager’sdiscretion,

inthenextfiscalyear.



13. Use of estimates Ͳ The preparation of financial statements in conformity with accounting

principlesgenerallyacceptedintheUnitedStatesofAmericarequiresmanagementtomake

estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly,actualresultscoulddifferfromthoseestimates.



14. Subsequentevents–SubsequenteventsareevaluatedbymanagementthroughMarch24,

2022,thedatethefinancialstatementswereavailableforissuance.

CityofAventura,Florida

Property taxes are assessed as of January 1 each year and are first billed (levied) and due the

followingNovember1.



UnderFloridalaw,theassessmentofallpropertiesandthecollectionofallcounty,municipal,school

board and special district property taxes are consolidated in the Offices of the County Property

Appraiser and County Tax Collector. The laws for the State regulating tax assessments are also

designed to assure a consistent property valuation method statewide. State statutes permit

municipalitiestolevypropertytaxesatarateofupto10mills($10per$1,000ofassessedtaxable

All property is reassessed according to its fair market value as of January 1 each year. Each

assessment roll is submittedtotheExecutiveDirectorof theFloridaDepartmentofRevenuefor

review to determine if the assessment rolls meet all of the appropriate requirements of State

Statutes.

with discounts at the rate of 4% if paid in the month of November, 3% if paid in the month of

December,2%ifpaidinthemonthofJanuaryand1%ifpaidinthemonthofFebruary.Taxespaid

duringthemonthofMarcharewithoutdiscount,andallunpaidtaxesonrealandtangiblepersonal

propertybecomedelinquentandliensareplacedonApril1oftheyearfollowingtheyearinwhich

thetaxeswereassessed.ProceduresforthecollectionofdelinquenttaxesbyMiamiͲDadeCounty

are provided for in the laws of Florida. There were no material delinquent property taxes as of

September30,2021.

 7 of the Florida Administrative Code. These rules provide guidance and establish the general

operating procedures for the administration of the SBA. Additionally, the Office of the Auditor

GeneraloftheStateofFloridaperformstheoperationalauditoftheactivitiesandinvestmentofthe

The Finance DirectorisdesignatedasinvestmentofficeroftheCityandisresponsibleforinvestment

decisionsandthedayͲtoͲdayadministrationofthecashmanagementprogram.Theinvestmentpolicy

establishes permitted investments, asset allocation, issuer limits, credit rating requirements and

maturitylimitstoprotecttheCity'sassets.AllinvestmentsecuritiesareheldbyaTrustcustodian,and

aremanagedbyfinancialadvisors.Ingeneral,theCity'spolicyallowstoinvestinthefollowing:(1)

securitiesandobligationsoftheUnitedStatesandits agencies;(2)nonnegotiableinterestbearing

timedepositsorsavingsaccountsprovidedthatsuchdepositsaresecuredbycollateralasprescribed

by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; (3) repurchase

agreementscollateralizedbyfullorgeneralfaithandcreditobligationsoftheU.S.Governmentor

Agency securities; (4) the Florida Local Government Surplus Funds Trust Fund “SBA”; (5)

intergovernmentalinvestmentpoolsauthorizedpursuanttotheFloridaInterlocalCooperationAct,

CityofAventura,Florida

"Board"). The Board contracts with investment advisory firms and approves any new investment

vehicles presented by the consultants.  The investment policy statement in effect for fiscal year

endedSeptember30,2021waslastamendedonAugust25,2021.



AtSeptember30,2021,theCityhad$2,500,000ofcashinescrowheldbyanagent,relatedtocertain

trafficimprovementsandotherconstructionprojects.



As of September 30, 2021, the City's cash, cash equivalents and investments consisted of the

following:

  

Cash,cashequivalentsandinvestments:

StateBoardofAdministrationͲ

SBA,FloridaPRIME $ 28,867,239

Governmentbonds 11,044,905

investments $ 65,319,664

Fiduciaryfundinvestments:

Equitysecurities $ 44,798,157

Governmentsecurities 5,358,101

Totalfiduciaryinvestments $ 68,763,481

 InterestRateRisk  





This is the risk that changes in market interest rates will adversely affect the fair value of an

investment.Generally,thelongerthematurityofaninvestment,thegreaterthesensitivityofitsfair

valuetochangesinmarketinterestrates.TheCity’spolicyisthatunlessmatchedwithspecificcash

flow,theCitywillnotdirectlyinvestinsecuritiesmaturingmorethanseven(7)yearsfromthedate

of purchase. Because of inherent difficulties in accurately forecasting cash flow requirements, a

portion of the portfolio should becontinuously invested in readily available funds to ensurethat

properliquidityismaintainedtomeetongoingobligations.



The City does not have a formal investment policy for its pension funds that limits investment

maturitiesasameansofmanagingitsexposuretofairvaluelossesarisingfromincreasinginterest

Fair LessThan 1Ͳ5 6Ͳ10 Than

InvestmentType Value 1Year Years Years 10Years

CityInvestments:

StateBoardofAdministrationͲ

SBA,FloridaPRIME $ 28,867,239 $ 28,867,239 $ Ͳ $ Ͳ $ Ͳ

Governmentbonds 11,044,905 101,344 10,943,561 Ͳ Ͳ

Corporatebonds 5,605,370 985,041 4,620,329 Ͳ Ͳ

Governmentmortgagebacked

securities 3,661,643 Ͳ 981,392 1,880,109 800,142

Governmentagencies 3,624,800 848,351 2,776,449 Ͳ Ͳ

Municipal/provincialbonds 1,649,570 Ͳ 1,649,570 Ͳ Ͳ

Assetbackedsecurities 1,392,538 Ͳ 1,392,538 Ͳ Ͳ

Governmentissuedcommercial

mortgagebackedsecurities 810,356 Ͳ 810,356 Ͳ Ͳ

Internationalbonds 300,000 Ͳ 300,000 Ͳ Ͳ SubtotalͲCityInvestments 56,956,421 30,801,975 23,474,195 1,880,109 800,142 FiduciaryFundInvestments:

Corporatebonds 4,648,278 504,548 2,192,777 1,755,703 195,250

U.S.treasuries 4,390,763 708,289 2,525,444 787,884 369,146

U.S.agencies 967,338 125,028 351,650 319,085 171,575

Fixedincomefunds 1,400,562 661,576 624,810 114,176 Ͳ SubtotalͲFiduciaryFund 11,406,941 1,999,441 5,694,681 2,976,848 735,971 TotalInvestments $ 68,363,362 $ 32,801,416 $ 29,168,876 $ 4,856,957 $ 1,536,113

TimetoMaturity(inYears)

CityofAventura,Florida

highly rated securities with minimum ratings of A (long term securities), AͲ1/PͲ1 (short term

securities), and AAAm (money market mutual funds). The Finance Director shall determine the

appropriateactionforanyinvestmentheldthatisdowngradedbelowtheminimumratingbyoneor

more rating agencies. U.S. government securities or obligations explicitly guaranteed by the U.S.

governmentarenotconsideredtohavecreditriskexposure.

AA+ 19,446,572

Aaa 2,328,571

AAAm 28,867,239

NotRated 300,000

$ 56,956,421 FiduciaryFundInvestments:

A1 $ 293,100

A2 361,472

A3 259,938

AAA 3,147,982

AA 43,089

A 44,647

BAA1 54,577

BBB 56,808

BB 3,469

B 1,006



The City's policy is to maintain a diversified portfolio to minimize the risk of loss resulting from

concentration of assets in a specific issuer. Specific limits have been established which limit the

percentageof portfolioassets thatcanbeinvestedwithaspecificissuer.GASBStatementNo.40,

DepositandInvestmentRiskDisclosures,requiresdisclosurewhenthepercentageis5%ormorein

anyoneissuer.InvestmentsissuedorexplicitlyguaranteedbytheU.S.governmentandinvestments

in mutual funds, external investment pools, or other pooled investments are excluded from this

requirement.AtSeptember30,2021,theCityhadinvestmentsin theFederalNational Mortgage

Association(FannieMae)amountingto6.98%ofthetotalinvestmentsheldbytheCity.



Thepensionfundlimitsinvestmentsthatmaybeinvestedinanyoneissuertonomorethan5%of

plan’snetposition,otherthanthoseissuedbytheU.S.GovernmentoritsAgencies.Morethan5%

plan’snetposition,otherthanthoseissuedbytheU.S.GovernmentoritsAgencies.Morethan5%

Nel documento The City of. Aventura, FLORIDA. $QQXDO Comprehensive Financial Report For The Fiscal Year Ended September 30, 202 (pagine 45-77)