Comprehensive Annual Financial Report

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Comprehensive Annual Financial Report Comprehensive Annual Financial Report FISCAL YEAR END&% SEPTEMBER 30, 2019 CENSUS Highlighting North Miami’s 2020 Census Community Outreach Initiatives NorthMiamiFL.gov COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF NORTH MIAMI, FLORIDA FISCAL YEAR ENDED SEPTEMBER 30, 2019 PREPARED BY THE FINANCE DEPARTMENT Miguel A. Augustin, CPA – Finance Director Margaret Steele Miller, CPA – Assistant Finance Director Serge Nicolas – Chief Accountant Abel Jean-Baptiste – Accountant SPECIAL ACKNOWLEDGEMENT Katherine Parrish - Administrative Assistant Kamela Scott - Utility Business Supervisor Meghan Thumann – Graphics Designer CITY OF NORTH MIAMI, FLORIDA Fiscal Year Ended September 30, 2019 Table of Contents PAGE I. INTRODUCTORY SECTION - UNAUDITED Letter of Transmittal ………………………………………………………………………………………...i List of City Officials …………………………………………………………………...….…………….....xi Organizational Chart …………………………………………………………………...………………….xii Certificate of Achievement for Excellence in Financial Reporting………………………………………..xii II. FINANCIAL SECTION Independent Auditor’s Report.…………………………………………………………………………….... 1 Management’s Discussion and Analysis - Unaudited………………………………………..…..….…........4 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position ……………………………………………………………………….…. 27 Statement of Activities.…………………………………………………………..….….………….. 28 Fund Financial Statements: Balance Sheet - Governmental Funds.…………………………………………………….….....…. 29 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position…....30 Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Governmental Funds............................................................................................................................................ 31 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) of Governmental Funds to the Statement of Activities………..………….….…….32 Statement of Net Position - Proprietary Funds.…………………………………………..………... 33 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds……….. 34 Statement of Cash Flows - Proprietary Funds …………………………………...…………….….. 35 Statement of Fiduciary Net Position - Pension Trust Funds.…………………………………..…... 36 Statement of Changes in Fiduciary Net Position - Pension Trust Funds.……………….…….…….37 Notes to Basic Financial Statements…………………………………………………………………….. 38 Required Supplementary Information - Unaudited: Budgetary Comparison Schedule - General Fund …………………………………………………….109 Budgetary Comparison Schedule - CRA Fund.…………………………………..…………………...110 Budgetary Comparison Schedule - C.D.B.G. Entitlement Fund…..……………..…..………………..111 Budgetary Comparison Schedule - Landfill Closure Fund.………………………….………………..112 CITY OF NORTH MIAMI, FLORIDA Fiscal Year Ended September 30, 2019 Table of Contents PAGE II. FINANCIAL SECTION (Continued) Notes to the Budgetary Comparison Schedules.………………………………………………………... 113 Schedule of Changes in Net Pension Liability and Related Ratios... …………………..……………… 115 Schedule of Contributions - Pension Plans……………………………………………........................... 116 Schedule of Investment Return – Pension Plans……………………………………………………….. 121 Schedule of Changes in the Total Other Postemployment Benefits Liability.…………………………..122 Supplementary Information - Unaudited: Combining Fund Statements and Schedules: Nonmajor Governmental Funds - Special Revenue: Combining Balance Sheets.……………………………………………………..……………... 123 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits)... 126 Nonmajor Governmental Funds - Internal Service: Combining Statement of Net Position...……………………………………………….…......... 129 Combining Statement of Revenues, Expenses, and Changes in Net Position.……....……........ 130 Combining Statement of Cash Flows……………………………………….……………….… 131 Pension Trust Funds: Combining Statement of Fiduciary Net Position…………………………………………..….. 132 Combining Statement of Changes in Fiduciary Net Position…………………………………. 133 Budgetary Comparison Schedules.……………………………..……………………….…………….. 134 III. STATISTICAL SECTION - UNAUDITED Financial Trends: Net Position by Component.………………………………………………………………..…….… 144 Changes in Net Position ……………………………………………………………………………. 145 Fund Balances - Governmental Funds.………...…………………………………….…………..…. 148 Changes in Fund Balances of Governmental Funds………………………………………….…….. 149 Tax Revenue by Source - Governmental Fund…….………………………………..…………........ 150 Assessed Value Taxable Property.………………………………………………..……………….... 151 Property Tax Rates - All Direct and Overlapping Tax Rates ……………………………………….152 Principal Property Taxpayers.……………………………………………………..…....................... 153 CITY OF NORTH MIAMI, FLORIDA Fiscal Year Ended September 30, 2019 Table of Contents PAGE III. STATISTICAL SECTION - UNAUDITED (Continued) Property Tax Levies and Collections.…………………………………………..………………...... .154 Enterprise Fund and Utilities Rates.………………………………………………..…..…………... 155 Debt Capacity: (unaudited) Ratio of Outstanding Debt by Type.…………………………………………………….................... .156 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General.……………..… 157 Schedule of Direct and Overlapping Bonded Debt.…………………………………………………. 158 Ratio of Annual Debt Service Expenditures for Bonded Debt.……………………………………… 159 Schedule of Revenue Bond Coverage Water and Sewer Enterprise Fund.……………..…………… 160 Fiscal Year Budgeted and Historical Non-Ad Valorem Funds.……………………………………... 161 Debt Service Requirement and Coverage Outstanding and Proposed ………………….…………... 162 Debt Service Payable from Portions of the Non-Ad Valorem Funds.………………..……………... 163 Demographic and Economic Information: (unaudited) Demographic and Economic Statistics.………………………………………………..…................. 164 Principal Employers.………………………………………………………………….……………... 165 Full-Time Equivalent City Government Employees by Function/Program.………………………... 166 Operating Information: (unaudited) Operating Indicators by Function/Program.…………………………………………….…………... 167 Capital Asset Statistics by Function/Program.………………………………………….…………... 168 IV. COMPLIANCE SECTION Single Audit Report in Accordance with Uniform Guidance…………………………………………….1-13 Management Letter in Accordance with Chapter 10.550 of the Rules of the Florida Auditor General…...1-7 PAGE LEFT INTENTIONALLY BLANK I. Introductory Section Letter of Transmittal Listing of City Officials Organizational Structure PAGE LEFT INTENTIONALLY BLANK Finance Administration June 3, 2020 To the Members of the City Council and the Citizens of the City of North Miami: We are pleased to submit the Comprehensive Annual Financial Report (“CAFR”) for the City of North Miami, Florida, (the “City”) for the fiscal year ended September 30, 2019. The financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). This report is published to fulfill the requirements of Chapter 11.45 of the Florida Statutes, and Section 16 of the City Charter which require that City accounts be audited annually by independent auditors. Management assumes full responsibility for the completeness and reliability of the information contained in this report. The City operates under a comprehensive internal control framework designed to prevent the City’s assets from loss, theft, or misuse, and ensures the reliability of financial records. Considering the cost of internal controls should not exceed the benefits, the objective of this report is to provide reasonable, rather than absolute assurance that the financial statements will be free from material misstatement. The City’s accounts and financial statements have been audited by RSM US LLP. The firm has issued an unmodified opinion on the City’s financial statements for the year ended September 30, 2019. The independent auditor’s report is located at the beginning of the financial report section on page 1. As a recipient of federal, state and county grants, the City is also subject to an annual Single Audit in conformity with the provisions of the Federal Single Audit Act and Chapter 10.550 of the Rules of the Auditor General of the State of Florida. The standards governing Single Audit engagements require the independent auditor to report, not only on the fair presentation of the financial statements, but also on the City’s internal controls and compliance with legal requirements, with special emphasis on the administration of federal and state awards. Information related to the Single Audit, including the Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Financial Assistance and Local Awards, findings and recommendations, and auditor’s reports on the internal controls and compliance with applicable laws and regulations are included in the compliance section. The management’s discussion and analysis (“MD&A”) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter and should be read in conjunction with it. The City of North Miami’s MD&A can be found in the section immediately following the report of the independent Certified Public Accountants. i PROFILE OF THE CITY The City is located in the Northeastern region Miami-Dade County, Florida. The City of North Miami is the sixth largest City in Miami-Dade County, and the forty-first largest in the State. It encompasses 9.5 square miles
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