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Miscellaneous Information O~UNTYOLMONROE KEY WEST ..:1 I':'ORIDA 33l* (305) 294-<1841 . "-- . -. ... '.". \. -0-. _ .......~-................~_..~..-.;............;.;;:~'"--'~...;."':...:.:.-.~.....:..~}~,..;..._ _ :-__. :....._...~".~. '.\:. ";',- .....,_ -,: '"_....... r-- BOARD OF COUNIT COMMISSIONERS Mayor Shirley Freeman. Disttict 3 Mayor Pro tem George Neugent, District 2 Wilhelmina Harvey, Disttict I Nora Williams, District 4 Mary Kay Reich. Disttict S Engineering Department 5100 College Rd. Key West, FI 33040 January 13, 2000 . Mr. Kirby Scheinmann ' Marathon Economic Development Council P. O. Box 522582 Marathon Shores, FL 33052 RE: Marina Management Agreement Dear Mr. SCh~: J(ir.b;' According to the contract between Monroe County and the MEDC, #5c, the MEDC must submit to the County an annual audit performed by a CPA no later than three months after the end of each County fiscal year (year ends September 30). The CPA should be an independent accountant who has not been involved with the marina and who is not a member of the MEDC. In addition, I have attached a memo written by the County's Office of Management and Budget Director, John Carter, whichl would like you to address. I'm sure that John would be willing to meet if you have any questions about his request. Please provide this information to me at your earliest opportunity. Thanks. DSK/jl MthnPkAudit.KSN Cc: James L. Roberts / Danny Kolhage V Dent Pierce John Carter cZre)c - David S. Koppel, P.E. County Engineer Monroe County Office of Management & Budget'. 5100 College Road Key West, FL 33040 voice: (305) 292-4470 fax: (305) 295-4320 (~.~- BOARD OF COUNTY COMMISSIONERS MAYOR Shirley Freeman, District3 Mayor Pro tern George Neugent, District 2 Wilhelmina Harvey, District 1 Nora Williams, District 4 Mary Kay Reich, District 5 0'. OK'!~rY ~o~~~E (305) 294-4641 . I U~J][n?G b~ OZ~O~_ MEMORANDUM Date: January 10,2000 To: David Koppel County Engineer From: John Carter ~i...- ~ Director, OMB Subject: Marathon Marina cc: Sandra Carlile James L. Roberts --------------------------------------------------------------------------------------------------------------------- Each month, an audit slip to authorize payment to the Marathon Economic Development Council, Inc. is routed through my office. I have confined my review to whether there is sufficient budget to make the payment each month. However, I have noted that the attached documents do not include any standard financial statements, but rather include several worksheets that finance uses to support issuing a check. Although the supporting documentation is sufficient for issuing a monthly check, it is not sufficient for proper management and monitoring of the marina operations. It is particularly troublesome to not be able to see how the cash flows are handled, what the gross profit margins for goods and services sold are, and whether revenue growth trends show that the taxpayer subsidy can ever be expected to phase out. Since Monroe County taxpayers are effectively "silent partners" in this venture, the BOCC should receive basic, standard financial statements, including a proper income statement, balance sheet, and statement of changes in fmancial position (cash flow). I understand that the Marathon Marina uses the services of a Certified Public Accountant. Therefore these fundamental fmancial statements should be relatively easy to produce and I respectfully request that these statements be provided to the County. 1 FILE No.077 03/01 '00 11:08 ID:WAVK-CLEAR CHANNEL FAX:3057439091 DATE: March 1,2000 TO: David Koppel, County Engineer SUBJECT: Florida Keys Marina, Marathon FROM: Ken Carter Cc: Jim Roberts, County Administrator Danny Kolhage, Clerk of the Circuit Court Please send me a list of the grants that have been secured by the Marathon Economic Development Council for the period 2/99 through 1/00 for the purpose of improving the marina. I also request a summary of the capital improvements made at the marina during the same time period as well as the cost of those improvements. Please send the above via fax to me at (305) 743-9091 or via mail to: Ken Carter, PO Box 500261, Marathon, FL 33050. Please bill me for any charges in connection with this request. Thank you for you prompt attention to this matter. ~~. Ken Carter PAGE 2 FILE No.077 03/01 '00 11:08 ID:WAVK-CLEAR CHANNEL FAX:3057439091 PAGE 1 FAX COVER SHEET DATE: .] /1 joo TO: j)ArJNy K OLIIIJ 6~ cLEP-/c OF CDUfl-r ,I TOTAL PAGES INC. COVER SHEET: 2 MEMORANDUM TO: Danny Kolhage Clerk of Circuit Court FROM: David S. Koppel'\lO County Engineer or DATE: June 13,2000 RE: Florida Keys Marina, Marathon Audit Attached, please find a memo from Ken Carter on the above-referenced subject. Can you have one of your staff review this and call me. Thanks. DSK/jl FIMarinaAuditKolhage.DOC Cc: James L. Roberts Dent Pierce FILE No.745 06/12 '00 10:51 ID:WAVK-CLEAR CHANNEL FAX:2IJ57439091 PAGE 2 DATE: June 12,2000 TO: County Commissioner Nora Williams FROM: Ken emer SUBJECT: Audit ofMEDC Financial Records of Marina Oporation CC: County Administrator Jim Roberts County Engineer David Koppel MEMO SENT VIA FAX I'd like to follow up on the diICUlsion we had this morning about the discrepancy in the figures reported to the County by the MEDC in their revenue and expense stat8ments for the period ended 9130199 and the figures reported by the CPA' I audit for the same period. The MEDC reported that tbey paid S31, 173 for "Professional Fees" for the period. Tbe auditor reports that they paid $'0,641 for uMarina Manager and Grant Writer" and S13,11S for "Professional Fees". Theae two items added together total $63,756. The MEDC reports total expenses in all categories for the period of$88A21. The auditor reports total expenses in all catepioa for the period of 5123,109, a difference of $34,688. Why did the MEDC under-report to the County expenses totaling nearly $35,000 for their tint 8 months of operation? Is it possible that money was paid to individuals in the form of professional fees or salaries that was not reported to the County? I feel an answer to this question needs to be forthcomiul as soon u pollible. The best way to find this answer would be to request from the CPA firm who did the audit a breakdown of the checks paid out by the MEDC that comprise the categories of "Marina Manager and Grant Writer" and "Professional Fees" and that total $63.1'6. lbis breakdown should list each check, the payee and the amount paid. This should be readily available from the CPA's worksheets. FILE No. 745 06/12 '00 10 :52 ID :~VK-CLE~ C~EL FAX:?JJ57439091 PAGE 3 I respectfully request that you introduce this matter at this week's Doce meeting in, Marathon for the County statfto request an itemitation oftbe $63,7S6 from the CPA firm that performed the audit, and that this itemization be available to the public in compliance with the terms of tho County's contract with the MBDC. Ken Carter PO Box 500261 Marathon, FL 33050 731.3721 captken3@juno.com FILE No.745 06/12 '00 10:51 ID:WAVK-CLEAR CHANNEL FAX:3057439091 PAGE 1 FAX DATE: fo fZ--/OU TO: YA V6 ~Ot'f5L-- (30V 29 5 - If :3 2- I FROM: VG.jJ CAKIE R NUMBER OF SHEETS: 3 MEMORANDUM TO: James L. Roberts County Administrator FROM: David S. Koppel ~ County Engineer [JJI\.. DATE: June 5, 2000 RE: Florida Keys Marina, Marathon Attached please find the audit of the Marathon Economic Development Council operation of the above-referenced subject. If! understood correctly, the auditor's report indicates that the financial statements of the MEDC are in conformity with generally accepted accounting principles. By copy of this letter we are transmitting a copy of the audit to the office of the Clerk of Courts for their review and comment. Please let me know who else to send this to. Thanks. ::r c::; <:) -n 0 ::;:;: >- <:) .....; ::0(")=<= c... r- Or-Z ~ f"T1 fTl:::Jt:-;: 0 C")' r- , ' .." 0("") . en <::) c::- ;z:o:::p.; ::0 _.( 0 :: ;:0 :<~f:; .c-;" IT1 "'1' :;.:.. (") ,.. C') -. <:) .f~ /"Tt C':). ;:0 ..... Q DSK/jl MthnAuditJLR.DOC Cc: Danny Kolhage V' Jim Hendrick Dent Pierce JUN-lZl2-200lZl 17:07 HARPER,VAN,SCOIK fflmerlfnnScdtk & af1y,L L P 7Z7 446 0504 1'.01/13 WilIIO O.lIuIIION. JR.. C.P" JOHN Pl. a;AI1I\M. JR. CP..... '''_I "ANCOO:,C.PA REX E. ~R, C PA M SCOTT MOCJIll!. C P.... t;H.lollI..~ O. RlOGS Ill. CPA A W\IT SCHAI;FFfA, C.P" IMltllG CO; """ $COIK. c.P'" CIlAAUS W WH'ISIO,*, CP'" CPA SAN I) BUS I N E 5 5 A 0 V I 5 0 R S Iw'IMII!lI5 flOllIDA 1NII1IU1I! 0' C!RlHD PUIILIC ACCOUNTANTS 2111 OOEW sr~(~ . P,O. BO,l .,~ . CLEARWATER. FLORIDA 33768-4989 rfLfPHON! (727) 446-(1514. FAX (727) -461-7384 EmoII: I'Mlnfo@hV2-q:lC1.eOm . Internet: http://www.n\.s-cQQS.com AMERICAN INSmUIE OF C~ PUIU: ACC(lUNIANTli SEe NIO PIllw[ COI.tPIINlfs PllACflCi IiC1IOIts FACSIMILE MACHINE (FAX) TRANSMITTAL CC)VER LETTER DA IE: .9 2. / '2,..000 TO:, \)~ ~ . COMPANY:~~O ~'t-~D~ FAX NUMBER: ~ - 3 05 - 2.'5 - \/3"2.. / NUMBER OF PAGES \~ (INCLUDING TRANSMllTAL SHEET): ~ ~ -.. 1 A -A-A- FROM: ~ TRANSMITTER: IN~~:~~~ ~ -ffS~ ~tiL.. HARD COPY WILL ~ WILL NOT [ I FOLLOW BY MAIL The information in this facsimile may be confidential. The information is intended only for the use of the individual to whom it is addressed. If you are not the intended recipient, you are hereby notified that any use; dissemination. distribution or copying of this communication is stricUy pl'Ohibited. If you have received this facsimile in error. please immediately notify us by telephone (collect If necessary) and retum the original message 10 us at the address above VIA Ine U.S. Postal Service. Thank you. A UWIlEP Of II INlfP/IWIOOAL ^ we-llll rlWlrl' OI'I(;A,..,,\rJON Of ACCOlJNIINC rlllM$ 1\1'1) lllf'HSS IllWl50RS JUN-02-2000 17:08 HARPER,VAN,SCOIK 727 446 0504 P.02/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. FINANCIAL STATEMENTS September 30, 1999 JUN-02-2000 17:08 HARPER, IJAN, SCOIK MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT FINANCIAL STATEMENTS Statement of Activities Balance Sheet Statement of Cash Flows Notes to Financial Statements 727 446 0504 P.03/13 PAGE 1 2 3 4 5 JUN-02-2000 17:08 HARPER,VAN,SCOIK 727 446 0504 P.04/13 INDEPENDENT AUDITORS' REPORl" JUN-02-2000 17:08 HARPER,VAN,SCOIK 727 446 0504 P.05/13 er: Iftr-nSaiIe rP&fJJthPany, L L P MEMes 1'l0000A INSTITUTf OF CliRnFIEO P\J8UC ACCCUNTANT5 QAv() C. BURTON. .IlL C.PA JOHN M. GRAHAM. JR.. C.PA FRANK J. HANCOCK. C.P-^. rIEl( E. HARPER. C.PA M. SCOlTMOORE.C,PA, I:HAIIlf$ O. flIGGS Ul. CoP A- Il. MAlT SCMAfFl'!R. COP'" WlI.~ 1;. VAN $COli(. c.P.A. CMAllln W. WHElSTONE. C.PA ePAs AND BUSINESS AOVISORS 2111 DREW STREET. P.O. BOX 4989 . CLEARWATER. FlORIDA 33758-4989 TELEPHONE (72n 446-0504. FAX axn 461.7384 Emall: tMlnfoChvs-c;lt;l$.CQfT1' lntelnet: httJ;l:lIwww.hvs-<:pQ&.CQm AMEllu::N\lINSTmJTE OF aR11~ plJIU(: ACCOUNfANfS see AAQ PRIVA'If COMI"ANES PAACtla SECTlOl'lS The Board of Directors Marathon Economic Development Council, Inc. Marathon, Florida INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheet of Marathon Economic DeveJopment Council, Inc. as of September 30. 1999. and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. All audit includes examining, on a test basis. evidence supporting the amounts and disclosures in the financial statements. An audit aJso includes assessing the accounting principles used and significant estimates made by management. as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly. in all material respects. the financial position of Marathon Economic Development Council. Inc. as of September 30, 1999. and the changes in net assets and cash flows for the year then ended in GOI1fonnity with generally accepted accounting principles. k, 1Jl>?\ J.J~ ~I LLP April 15.2000 AMEMeEROF . ~ A WOl'llDWlOE ORGANIZATION OF ""CCOUNTlNG ARMS ANO 8USINESS ""OVl5OllS JUN-02-2000 17:09 HARPER,VAN,SCOIK 727 446 0504 P.06/13 FINANCIAL STATEMENTS JUN-02-2000 17:09 HARPER, VAN, SCOIK 727 446 0504 P.07/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. STATEMENT OF ACTIVITIES Year ended September 30,1999 Unntllfrll!tAlf Revenues: Marina management fees $ 112.300 Corporate donations 16.032 Donated property 2.500 Interest income 97 Total revenues 130.929 Expenses: Marina manager and grant writer 50.641 Salaries and payroll taxes 21,740 Utilities 14,471 Professional fees 13.115 Insurance 5.908 Repairs and maintenance 6.893 Administrative supplies 3,907 Cost of sales - ice 1.531 Interest expense 1.259 Other 2.720 Depreciation 924 Total expenses 123.109 Increase in net assets 7,820 Net assets, beginning of year 4.263 Net assets end of year $ 12.083 See Notes to FInancial Statements. 2 JUN-02-2e00 17:09 HARPER,VAN,SCOIK 727 446 0504 P.08/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL..NC. BALANce SHEET September 30, 1999 ~ Cash $ 9.348 Management tee receivable 14,500 property and equipment. at cost 7,180 Less accumulated deprecilltion 924 Net property and equipment 6,256 Utility deposits 2,784 Total aAets S 32.869 Liabilitie. and Nftt Anets Uabilitles: Payroll taxes payable $ 801 Accrued expenses 10,000 Line of credit payable 8.210 Computell88B8 payable 1.775 Total liabilities 20.788 Net a....: Unrestricted net assets 12,083 Totalllabllltlu and net aSHts S. 32.869 See Not.. to Finanoial8tatementa. 3 JUN-02-2000 17: 09 HARPER,V~,SCOJK 727 446 0504 P.09/13 MARATHON ECONOMIC D!VEl.OPMENT COUNCIL, INC. STATEMENT OF CASH FLOWS Year ended September 30. 1_ Ca.h flows from openltlng activities: Increase In net ....t. $ 7.820 Adjustments to reconCile change in net assets to net C8$h provided by operating activiti..: Depreciation 924 Donated property (2,500) Changes in assets and liabilitIeS: Management fee receivable (14,500) UtiJ ity deposits (2.764) Payroll taxes payable 801 Accrued expenses 10,000 Une of credit, net 8,210 Cash flows provided by operations 7.991 ea.h flows from Investing ICtivitl..: Purchase of property and equipment (2,500) C..h flow. from fin.noing aotivltJ..: Payments on computer lease (406) Net IncnNlse in C8$h 5,088 C.sh. beginning of year 4,263 Cash, end of year $ 9.349 See Notes to Fln.nolal Statement&.. 4 JUN-02-2000 17:10 HARPER, VAN, SCOIK 727 446 0904 P.10/13 MARATHON ECONOMIC DEVELOPMENT COUUCIL,.INC. NOTES TO fiNANCIAL STATeMENTS September 30, 1" 1. Summary of Slanlficattt Aacountlng Policias Oraanizatlon and PurDcse - The Marathon Economic Development Councl. Inc. (Council) was incorporat8d in the State of FIOOda in December, 1995 a8 8 601 (0)(4). not-for-proflt corporation. The CounCil', purpose and are twofold: 1 ) To prepare 8 blueprint to maximize the utilization of existrlg resources and identify specific opportunities for economic gl'O'Nth. 2) To further ensure that the CouncU's recommendations improve the quality of life for re$ldenti and that recommendation. are consistent with the highest ethlca of a business and or personal nature. Deoreciatlon - Property and equipment With a vllue greater than $500 and with an estimated life greater than 1 year .r. I'KOt"d<<:t at cost and depreci8ted CHer their estimated useful lives which range from 3 to 7 years. Depreciation expense is calculated an the straight-line method. In-Kind Conbibutions . In-kind contrtbutions .... recorded at the estimated fair market value at the date of contribution. contribUted services are recon:Jed at fair martcet value If provfdec:l by individuals who possess specialized skUls. those specialized sklJa lire used In the servleea provided, and the Council would have to purchase the Mnfice. If not donated. The servioes of other volunteers in the oommunity who donete many hours of servic::e to the COunCil. however. are not asaigned lIlI value fur financial reporthg purposes. Functional ExDenM. . Expenses ant allocated to program services and administl'8tive categotles based on the nature of the expense. Income Texes - The Council qualifies for tax-exempt status under Section 501 (c)(4) of the Internal Revenue Code. Therefore. no proVision for Income taxes Is Included in the 8Cicompanylng financial Itlltements. Estimates - The preparation of financial &1atementa In conformity WIth generally aocepted accounting principl.. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and d~ Ofcontingentauets and 1iW)i1iti.. ath date of the financial statements and the recorded amounts Of revenues and expense. during the reporting period. Actual results could differ from those eetimates. 5 JUN-02-2000 17:10 HARPER,VAN,SCOIK 727 446 0504 P.ll/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. NOTES TO FINANCIAL STATEMENTS September 30, 1899 2. Marina Manaaement Aareement On November 12, 1998, the Council and Monroe County, Rorida signed an agreement to perform management services at the Boot Key HaIbor Marina. The Council must keep the marina open to the publiC from 6:00 A.M. to 9;00 P.M. seven deys a week and perform such duties as rental of boat slips. rental ofWllshlng and bath faoilltles. routht malntenence of facilities, and sale of various boating and fishing items. All fees and revenues ooIlected by the Councu related to the marina operations ere the property of Monroe County and are to be deposited into a County controlled bank account on a dally basis. The County pays the Council a monthly fee of $14,500 for the management services. The CounCil began perfOrming management servloes during February, 1999, The management agreement ~s for th,... years but may be terminated by the County at any time If the County enooses not to appropriate sufficient revenues to fUnd the agreement. 3. Volunteer Services For the year ended September 30, 1999. community volunteers provided approximately 250 hours of time to assist in the Council's pI"OgreR1S and over.ight of the marina operations. This time i$ not reftected In these statements since they do not meet the criteria for being recorded In th9 statement of activities. 4. Property and EauiDment Property and equipment is summarized as foQows: Inflated boat and motor Floating dock Computer equipment $ 2,500 2,500 2,180 7,180 924 Less accumulated depreciation Net property and equipment s 6.256 6 JUN-02-2000 17:11 HARPER, V,::t.l, seD I K 727 446 0504 P.12/13 MARATHON ECONOMIC DEVliLOPMENT COUNCIL. INC. NOTES TO FINANCIAL STATEMENTS September 30. 188. 5. Line of Credit On January 8. 1999, the Council !!ligned a $60,000 line of credit With an initial variable rate of 7.75% per annum. The COllateral for the loan was an 888lgnment of the marina management agreement with Monroe County. The balance of the line of credit at September 30, 1999 was $8.210. The initial borrOWIngs against this loen were $20.000 and In an agreement with Monroe County, part of the I1Wl8gement fee cash flow we. used to repay Chese loans. The funds were used for start-up expenses at the marina. 6. CaDftal Lease Oblloatlon On February 6. 1999 the Council entered into a 36 month capital lease for computer equipment. The original value Of 1tle equipment was $2.914 and the lease terms require monthly payments of $81. The following summarizes the future minimum lease payments uncler the capital lease at September 30, 1999. Year ending September 30: 2000 2001 2002 $ 972 972 324 Total minimum lease payments 2.268 LeiS: amount representing interest ("il) Present value of minimum lease payments 1,777 Less: current portion of capItal I... obligation (656) Capitalleese obligation net of current portion $ 1.121 7 JUN-02-20ee 17:11 HARPER, VAN, SCOIK 727 446 0504 P.13/13 MARATHON ECONOMIC DEVmLOPMENT COUtlCIL, INC. NOTES TO FINANCIAL STATEMENTS September SO, 1999 7. Functional r;:~n.. Allocation: Expenses by functional classifICation for the year ended September 30. 1999 were: proararn Administrative Marina manager and grant writer $ 40.511 $ 10,130 8aI-* and payroll taxes 21.740 Utilities 14,471 FTofessk)nalfees 13.115 Insurance 4.728 1.180 Repairs and mBintenance 6,_ Administrative supplies 3.907 Cost 01 sales . lee 1,531 Interest expense 1.259 Other 2,720 Depreciation 500 424 S 931094 $ 30.015 8. SUDDlementarv Cash 'low Infonnatlon During the flSC8l year the Council received donated property used In operation with a value 01 $2.500 leased computer equipment with an Initial value of $2.914. In addition interest expense paid in the year totaled $1.259. 8 TOTAL P. 13 **************************************************************************************************** * P. 01 * TRANSACTION REPORT t JUN- 2-00 FRI 5: 14 PM \ * t * FOR: .~ * * DATE START SENDER RX TIME PAGES TYPE NOTE * * JUN- 2 5: 10 PM 727 446 0504 4' or 13 RECEIVE OK I ***************************************************************************************************r MEMORANDUM TO: James L. Roberts County Administrator FROM: David S. Koppel ~ County Engineer CJJI\.. DATE: June 5, 2000 RE: Florida Keys Marina, Marathon Attached please find the audit of the Marathon Economic Development Council operation of the above-referenced subject. IfI understood correctly, the auditor's report indicates that the financial statements of the MEDC are in conformity with generally accepted accounting principles. By copy of this letter we are transmitting a copy of the audit to the office of the Clerk of Courts for their review and comment. Please let me know who else to send this to. Thanks. :r 0 ~ l> ~n:Z 0,-2: fl1=-::-< n' r- o C") . C:i;A ;;e. 0 -lor- :< - '.':X: "T, . .> ,.- (:';1 f~ /"11 DSK/jl MthnAuditJLR.DOC Cc: Danny Kolhage V' Jim Hendrick Dent Pierce Q Q Co.. ~ '1 en :: ~, o. ...... "'TJ .....; r- fT1 o .." o ::0 ::0 r"'1 ('") o ::0 o JUN-02-2000 17: 07 727 446 0504 P.01/13 0IlII0 0. Iul'IION. JR.. c:.PA JOHNH. _.... c.P..... PlI_ I ttAICOO<.. C.P. A Il(I( E. 1-WlP5ll. C P... M ICOrT r.tOCR. C PA C;~E$O.~II.C;.P'" .. t.Wr SCHllliHP. C.P.A. IMlIfll G ..... seOI!. C.P'" CIlAlUS w. ~$IO~. e,... CPAs ANll BUSINESS ADVISORS ...... f\.CIIlDI\ M1lIUlr OJ CfJl1ll'Im I'UkIC ACCOUNTANT~ AKIlICAH INSrlIUIE ~ aIlIHO PuU: ACCOUN"'Nlli lEe AM) M\IW COWNoafs PIACflCIIICIlONs 2111 DREW srAEiT . P.O. 80X 04989 . ClEAAWAlER. R.OAlOA ~768-4989 rflfPHON! (727) 446.cm4 . FAX 027) 461-7~ Emoll; tMlnfoOhv1~.com . Internet: I'Ittp#WWWJM-c:QQS.com FACSIMILE MACHINE (FAX) TRANSMITTAL COVER LETTER DATE: 1}1/"2..000 TO:. \)~ ~ . COMPANY:~ ~ ~~~ J)~~ FAX NUMBER: .J -"3 oS -2'5 - \13."2.- I . NUMBER OF PAGES \...... (INCLUDING TRANSMITTAL SHEET); ~ FROM:~ ~ TRANSMITTER: "~~~j~ ~~~ "!Li!~ HARD COPY WILL V<t WILL NOT [ ) FOUOW BY MAIL The Information in this facsimHe may be confidential. The information is intended only tor the use of the individual to whom it is addressed. If you are not the intended reclplent. you are hereby notified that any use; dissemination. distribution or copying of this communication is strictly PJ'Ohibited. If you have reeeived this facsimile 10 error. please immec:l;.tely notify us by telephone (collect If necessary) and retum the original message 10 us at the address above VIA the U.S. Postal Service. Thank you. A UWIII:P Of II INlfIll'WIONAL ^ Wt"JQ1 rNvlrJF Ol'KO^"IJAIION ('JI ACCOIINIINC FIRMS AI'<<> Iltl!>>.fSS AIMS~ JUN-132-2131313 17:138 HARPER,VAN,SCOIK 727 446 135134 P.132/13 MARATHON ECONOMIC DEVELOPMENT COUNCil, INC. FINANCIAL STATEMENTS September 30, 1999 JUN-02-2000 17:08 HARPER,VAN,SCOIK MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT FINANCIAL STATEMENTS Statement of Activities Balance Sheet Statement of Cash Flows Notes to Financial Statements 727 446 0504 P.03/13 PAGE 1 2 3 4 S JUN-02-2000 17:08 HARPER,VAN,SCOIK 727 446 0504 P.04/13 INDEPENDENTAUDrrORS'REPORr JUN-02-2000 17:08 727 446 0504 P.05/13 O,IMO O. BURTON. JIL COP..... JOHN H. GRAHAM. JR.. Co" A. FAANK J. HNlCOCK. e.PA. !lEX E. HAllPER. C.PA M. SCOTT MOORI!. C,P.A, 0IA1lE5 C. 1lIGG$II, C.PA R. MAlT SCHAEFFiR. CoPA wuE1I .;:. V...,. 51:01<. CJ' A ClWlLES W. WHEISIONE. C.PA CPAs AHO BUSINESS AOVISORS MEMaeRS FI..ORDA INSTIME O~ armF"O PIJ8UC ACCOUHTANlS 2111 DREW stREET. P.O. BOX 4989 . CLEARWAtER. Fl..ORIDA 33758..989 TELEPHONE (727) 4lIO.(J504. FAX azn 461-7384 EmQII: tMlnfoCIItwI-<:;)CI$.com . Internet: hftJ;l:lIwww./'M.oc~.QQm 1WE/lICNoIIN$lmJIE OF C8mF1ED PUIU!: ACCOuNf...,.rs E AlIO I'RI\Ne COMPAl'llU I'AACl'la SEa1OI'cS The Board of Directors Marathon Economic Development Council, Inc. Marathon, Florida INDEPENDENT AUDrTQRS" REPORT We have audited the accompanying batanee sheet of Marathon Economic DeveJopment Council, Inc. as of September 30. 1999. and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibftity of management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generatly accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes exami'ling, on a test basis. evidence supporting the amounts and disdosures in the financial statements. AA audit also includes assessing the accounting principles used and significant estimates made by management. as well as evaluating the overall tinandat statement presentation. We believe that our audit provides a reasonabfe basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all materia) respects. the financiat position of Marathon Economic Development Counci. 100. as of September 30, 1999, and the changes in net assets and cash flows for the year then ended in conformity with generally accepted accounting principles. ~( 1J~ M~ ~, LLP ApriI1S.2000 AMEMIlEROF . ~ A WORlOWlDe cmGANlZATlON OF ACCO\JNT1IIIG fiRMS ANt) IlU$lNESS ADVISORS JUN-02-2000 17:09 HARPER,VAN,SCOIK 727 446 0504 P.06/13 FINANCIAl STATEMENTS JUN-02-2000 17:09 HARPER,VAN,SCOIK 727 446 0504 P.07/13 MARATHON ECONOMIC DEVeLOPMENT COUNCIL. INC. STATEMENT OF ACTIVITIES Year ended September 30.1999 UnrAlltrll!tAlf Revenues: Marina management fees $ 112.300 Corporate donations 16.032 Oonated property 2.500 Interest income 97 Total revenues 130.929 Expenses: Marina manager and grant writer 50.641 Salaries and payroll taxes 21,740 Utilities 14,471 Professional fees 13.115 Insurance 5.908 Repairs and maintenance 6.893 Administrative supplies 3.907 Cost of sales - ice 1,531 Interest expense 1,259 Other 2,720 Depreciation 9~ Total expenses 123,109 Increase in net assets 7,820 Net assets, beginning of year 4.263 Net assets end of year $ 12.083 See Notes to Financial Statements. 2 JUN-02-2000 17: 09 HARPER, VAN, SCOIK 727 446 0504 P.08/13 MARATHON ECONOMIC DEVELOPMENT COUNCil. INC. BALANCE SHEET September 30. 1999 ~ Cash $ 9,349 Management fee receivable 14.500 Properly encI equipment, at coat 7.180 Ll!ISS accumulated depreciation 924 Net pruperty and equipment 6,256 UtIlity deposits 2.784 Total aAets S 32.869 Liablliti.. and Net AsMts Uabilitles: Payroll taxes payable $ 801 AGcrued expenses 10,000 Line of credit payable 8.210 ~ 18888 payable 1.775 Total liablllt181 20.788 N.t ....ts: lJnreatricted net assets 12.083 Total liabilities .nd net assets '- 32.869 See Now. to Financial 8t8tementa. 3 JUN-02-2000 17:09 HARPER, VAN, SCOIK 727 446 0504 P.09/13 MARATHON ECONOMIC D!VELOPIIENT COUNCIL, INC. STATEMENT OF CASH FLOWS Year ended September 30. 1_ C..h flow. from upending activities: 1ncr98$8 In net UMt8 S 7,820 Adjustments to reconcile change in net assets to net Q1$h provided by operating 8Ctlvititt: Depreciation 924 Donated property (2,500) Changes in assets and IlabDItIeS: Management fee receivable (14,500) Utility deposits (2,764) Payroll taxes payable 801 Accl'ued expen=JBS 10,000 line of credit, net 8,210 Cash flows provided by operations 7,991 Cash flows from Inve.1Ing IICtIvftI..: Purdlase or property and equipment (2,500) C..h ftow8 from fiftMOing aGtiYltl..: Payments on computer lease (400) Net Inc:reue In ~h 5,088 C..h. beginning of yeer 4,263 easht end of y.... S 9.349 Set Note. to Flnanolal Statement&. 4 JUN-02-2000 17: 10 HARPER,V~,SCOIK 727 446 0504 P.10/13 MARATHON ECONOMIC DEVaOPMENT COUl.CII.. INC. NOTES TO fiNANCIAL STATI!MENTS Seplembll' 301 1_ 1. SUmmuv of SIgnIfiCbt Aaaauntfng ~licies OmanimtIon and Pumose . The MinIhan EconomIC Development CcuM:l1 Inc. (Councll) W8$ incorpOl'1lt8d In the S1ate of FlOI1da in Deoember, 1895 as a 601 (0)(4). not-for-profit corporation. The COUncil', purpose encI .. twofold: 1) To prepare 8 blueprint to maximile 1118 utilizaUon of existing resowces end identify spedftc opportuniUes for economic growth. 2) To further 8fl$ur8 th8t the Councl'a recommenclatfone improve the quefity of Iffe for residents and that reCOmmendlltfona aN consistent wfth the highest ethJea of a business ancI or personal naUe. Deoreciation - Property III1d equipment with a ValUe greaterlhan $SOD and with an estlmatecl life greater than 1 yew.... ~ at cost and depl'8Ciated (Net their estimeted useful Uves Which range from 3 to 7 years. DepreciatiOn expense Is CllcuIat8d on the straight-line method. In-Kind Contributions . In-kind contributions.... reoorded at Che e.6...tecI fair market \faIue at the date of can1rIbuUon. contributed 88IVlces en recorded at fair rnarbt value If provided by individuals who poaen specialized ~kiIIs. those specialized akIIa 1ft used In the IetVlc:eI provided, snc:I the Council would have 11) purchase !he MI"ViceI if not donated. The seMon of other volunteera in the c;ommunlty who dONlte many hours of serviGe to the COuncil, however. are not 818igned e Y8lue for financial ~ putpOSes. Functional ExDenu. . Expenses .. allocated to program services and adminisntive categories based on the nature of the expense. Income Taxes - The Council qualifi. for tax-exempt status under Section 501 (c)(4) of the Intemel Revenue Code. Therefore. no pl'QVlSIon for income taxes Is i1cfuded in the ac;c;ompanyi1g financi81 ltatementa. Estimates . The preparation of ftnancfalltat8ments In cantormlty WIh generally aooepted accounting princip_ requires l'Y1W18gement to make estil11lltes and assumptions that effect the reportecl amounts of assets and liablltles and diecIosu-e ofcantingentaaaets end la.bilties 8th date of the financi81 statements II1d the recorded amounts Ofrevenues and expec'IIeI during the reporting period. Actual results could differ from those HCiY1atea. 5 JUN-02-2000 17: 10 HARPER,VAN,SCOJK 727 446 0504 P.l1/13 MARATHON ECONOMIC DEVElOPMENT COUNCIL, INC. NOTES TO FINANCIAL STATEMENTs September 30.1198 2. Marina Manaaement Aareement On November 12. 1998. the Council and Monroe County.. Rorida signec:l an agreement to perform management serviCes at the Boot Key Harbor Marina. The Council must keep the marina open to the public from 8:00 A.M. to 9:00 P.M. seven days a week and perfom1lUCh duties as rental ot boat slips, rental afwuhlng and bath faoUIIfes, routnmai1tenenceoff8clltin. andaaleofVBriou, boating end fist'ling Itema. All fees and revenues collected by the CounCI related to the marina operations .-e the property of Monroe County and are to be depoelted Into a County coubultn:Jbank account on a daily basis. The County paya the CO&n:lla monthlyf8e of $14.600 for the management services. The Council began perfOrming management servlces duma February, 1999. The management agreement extwIds for IhrH yean but may be tsminated by the County 81 any time If the County choo8e8 not to appropriate suftlc:ient revenues to fund the 1lQl"MI'nent. 3. Volunteer s.r..ic:es For the year ended September 30, 1999, community volunteers provided approximately 250 hours of time to a.sist in the Counci's progrwns sxt 0VWIight of the mama operations. This ame 1$ not reftectecJ In theSe statements since they do not meet the crtteria for being recorded in th9 statement of activities. <t. ProDerty and Eauioment Property and equipment Is summarized as follows: Inflated boat and motor Floating dock Computer equipment $ 2,SOO 2,~OO 2,180 7.180 924 Le&& accumulated dllpl'eciatIon Net property and equipment s 6.266 6 JUN-02-2000 17:11 HARPER, VAN, SCOIK 727 446 0504 P.12/13 MARATHON ECONOMIC DEY&LOPMENT COUNCIL. INC. NOTES TO FINANCIAL STATEMENTS September 30, 188' 5. Un. of CNcIIt On January 8. 1999. the Council signed a $60,000 line of cadit with ., initial variable rate of 7.75% per annum. The COllateral for the loan was an 888Ignment of the marina management agreement with Monroe County. The balance of the lne of credit at September 30. 1999 was $8,210. The initial bol'rowings against thIs Ioen were S20,ooo and In an agreement with Morvoe County, part of the rrwlagementfee cash flow.. used to repeytheeeIoane. Thefunds wereUJed for start-up expenses at the marina. e. CaDItaI Lease Obl.gatlOn On February 6, 1999 the Councl enteNd InIo a 36 month oapiIeIle8se for computer equipment The original value of the equipment was $2.914 and the Ieaae terms require monthly payments fA $81. The following auinrnemzes the ruture minimum lease payments under the capit81 lease at September 30,1999. Y.. ending September 30: 2000 2001 2002 $ 972 972 32~ 2,268 Total minimum lease paymentIJ L.Is: amount representing intentst C4W Present value of minimum lease peyments 1,n7 Less: current portion of capltaI I.... obligation l656} Capitalleeae obligation net of current portion $ 1.121 7 JUN-02-2000 17:11 HARPER,VAN,SCOIK 7Z7 446 0504 P. 13/13 MARATHON ECONOMIC DIV!LOPMENT COU"Ca., INC. NOTES TO FINANCIAL STATEMENTs September 30, 1999 7. Functional ElmAn.. Allocation: Expenses by fUnctional c1assifk:at1on for the year ended SeInember 30. 1999 were: PraQl'IIm Admi\lstr8tI\M Merina manager and srant writer $ 40,611 $ 10,130 8alMIt Ind payrclf taxes 21.740 Utilities 14,471 ProfessiOnet fees 13,115 Insurance 4,728 1,180 Repairs and maintenlnCe 8,893 Administrative suppnes 3.907 Cost of sales . Ice 1,631 Interest expense 1,259 Other 2,720 Depreciation SOD 424 , 93.094 S 30.015 8. SuoDlementaty Cash I'Iow InformaUon During 1he fiscal year the Council recelvecl donated property Uted In operation with 8 value of S2.~ leased comput8r equipment with an Initial value of $2,914. In addition interest expense paid In the year totaled $1,259. 8 TOTAL P. 13 ***************************************************************************************************1 * P. 01 ~ * TRANSACT I ON REPORT * * JUN- 2-00 FRI 5: 14 PM ~ * * * FOR: ~ * * * * * ***************************************************************************************************r. DATE START SENDER JUN- 2 5: 10 PM 727 446 0504 RX TIME PAGES TYPE NOTE 4' 07' 13 RECEIVE OK 1. MEMORANDUM TO: Mr. Roberts County Administrator David S. Koppel ~)~V County Engineer Jrf FROM: DATE: June 15,2000 RE: Florida Keys Marina, Marathon Audit In response to my June 5, 2000 memo regarding the above, you posed three questions. The following responses are offered. I) The contract does not specifically say whether the audit should be of the MEDC or the marina operation. I will contact the County Attorney and County Clerk for their opinion. 2) The audit does not appear to cover the depositing of marine revenue in the County's account. Again, we will confer with the County Attorney and County Clerk for their opinion 3) Finally, we had the same question you had regarding an agreement with the County to repay money initially used as part of the marina start-up expenses. We looked into this when we first began receiving invoices from the MEDC. After checking with the County Attorney's office we learned that repaying start-up costs using part of the monthly management fee was agreed to. By copy of this memo we are requesting the County Attorney and County Clerk to comment on the issues raised. DSK/jl MthnMarinaAuditJLR.DOC Cc: Danny KOlhage/ Jim Hendrick Dent Pierce MEMORANDUM TO: James L. Roberts County Administrator David S. Koppel ~ County Engineer OJ1\... FROM: DATE: June 5, 2000 RE: Florida Keys Marina, Marathon Attached please find the audit of the Marathon Economic Development Council operation of the above-referenced subject. If! understood correctly, the auditor's report indicates that the financial statements of the MEDC are in conformity with generally accepted accounting principles. By copy of this letter we are transmitting a copy of the audit to the office of the Clerk of Courts for their review and comment. Please let me know who else to send this to. Thanks. Cc: Danny Kolhage Jim Hendrick Dent Pierce , ./ /. ~ JUN-02-2000 17:07 727 446 0504 P.01/13 0IlII0 0. lIUrIrON. JR.. c:.p A JOHN H. a_. .AI.. C P..... ~I ttAICOO<..<;.PA REX E.I-WlP5ll. C PA M. ICOrT r.tOCR. C p" l;~E$O./lIGGSII.C;PA - .. t.Wr SCHAifIfA, (:.PA. IMltlD G V.....seOIl. C."" CIlAAL'S w. WH~$IO~. e,... CPA SAN Il BUS I N E S SAD V ISO R S ...... fl.0IIIDA MlIIIIlr OJ CeJllII'I!I) I'UIUC ACCOUN1ANT~ 2111 DREW srAEiT . P.O. 8011 4989 . CI!AAWAlER. fl..OQIOA ~768-4989 rflfPHON! (127) 446.cm4 . FAX 027) 461-738-l1 Emoll: IMlnfoOhv1'C1Xl1.colTl . Internet: http://WlolW.l\\.S-c:QQS.com NlllEIlICAH INSIlIUlE OJ' CGllIlAro ~ AQ;QlN"'Nlli SliC AM) M\IW~$ PlIACIICll&CllONs FACSIMILE MACHINE (FAX) TRANSMITTAL CC)VER LETTER DATE: 1}1/"2..000 TO:. \)~ ~ . . COMPANY:~ ~ ~~9.~ D~ FAXNUMBER: _1-305-2'75- \f3.~ I . P >r D V6"'D c- ry~7' '~;~~~~~;l~~ ~ tk~ -'Li!!'~ NUMBER OF PAGES \...... (INCLUDiNG TRANSMITTAL SHEET); ~ ~ -. 1 A -A-1-- FROM: ~ TRANSMITTER: HARD COPY WILL V<t WILL NOT [ ) FOUOW BY MAIL The Information in this facsimle may be confidential. The In(ormation is intended only for the use of the individual to whom it is 8ddressed. If you are not the intended reclpl.n~ you are hereby notified that any use; dissemination. distribution or copying of this communication is stricUy pl'Ohibited. If you have received this facsimile In error. please immed;.tely notify us by telephone (collect If necessary) and retum the original message 10 us at the address above VIA Itle U.S. Postal S8l\Iico. Thank you. A hAWIlEP Of II INTSIlNI\IICWAl ^ WI"llll NMfJF 0(.(;ANJIII10N ('lI' ACCOtlNIll'tC rlllM$ AND 1I11~'H$S AlM5011S JUN-02-2000 17:08 HARPER,VAN,SCOIK 727 446 0504 P.02/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. FINANCIAL STATEMENTS September 30,1999 JUN-02-2000 17:08 HARPER, VAN, SCOI K MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. TABLE OF CONTENTS INDEPENDENT AUDITORS' RI!PORT FINANCIAL STATEMENTS Statement of Activities Balance Sheet Statement of Cash Flows Notes to Financial Statements 727 446 0504 P.03/13 PAGE 1 2 3 4 5 JUN-02-2000 17:08 HARPER,VAN,SCOIK 727 446 0504 P.04/13 INDEPENDENT AUDITORS' REPORl" HARPER, lJAN, SCOIK er: IJn-nSc7Jfk ~'iWtPony. L L P 727 446 0504 P.05/13 JUN-02-2000 17:08 OA\IlD D. BURTON. .JR.. c.P..... JOHN H. Gat.HAM.JR.. c.P.A. FRANK J. H-cOCK. C.P.A. !lEX E. HAlPER. C.P.A M. SCOTT MOORE. C.P"'. O1AIl\S O. ~ m. C.PA. ~. MAlT SCIWI'l'ER. c.P.A WIlllEP 1;, V/4N SCOMe. e.PA CHAlUS W. WHElSTONE. C.P.A. CPAs AND BUSINESS ADVISORS MEMeERS Ft.OAll),I, INSfI!IITe OF CliIlIlFIEO PUIIJC ACCOUNTANTS 2111 OAEW STAEET . P.O. BOX 4989 . ClEARWATER. RORIOA 3375804989 TELEPHONE (727) ~. FAX r:rm 461-7384 Emall: tMlnfoOhw-<:;lQ$.CQITI . Intemer. ht1p:llwww.!'M<:pQ$.CQm AMElllov.a 1NSTm./TE OF camFlED PUIUC ACCOUNfANfS see AI\ICl ~1eCO~ ~ $EC1IONS The Board of Directors Marathon Economic Development Council, Inc. Marathon, Florida INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheet of Marathon Economic Development Council, Inc. as of September 30. 1999. and the related statements of activities and cash flows {or the year then ended. These financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generaily accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis. evidence supporting the amounts and disdosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management. as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly. in aU materia! respects. the financial position of Marathon Economic Development Council. Inc. as of September 30, 1999, and the changes in net assets and cash flows for the year then ended in conformity with generally accepted accounting principles. ~f 1JlH\ U~ ~, LLP April 15,2000 A,MEMlUOF . ~ A W01'llDWVl! OAGANlZAllC.lN OF Ac;COIJN1lNG; ARMS ANO IlUSlNESS AOVlSOAS JUN-02-2000 17:09 HARPER,IJAN,SCOIK 727 446 0504 P.06/13 FINANCIAL. STATEMENTS JUN-02-2000 17:09 HARPER, VAN, SCOIK 727 446 0504 P.07/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. STATEMENT Of ACTIVITIES Vear ended September 30. 1999 Unl'DlItrtmAft Revenues: / 112.300~ Marina management fees $ Corporate donations 16,032 Donated property 2.500 ~ Interest income 97- Total revenues 130,929 Expenses: Marina manager and grant writer 50.641 Salaries and payroll taxes 21,740 Utilities 14,471 Professional fees 13.115 Insurance 5.908 Repairs and maintenance 6.893 Administrative supplies 3,907 Cost of sales - ice 1,531 Interest expense 1,259 Other 2,720 Depreciation ~A Total expenses 123,109 Increase in net assets 7,820 Net assets, beginning of year 4.263 Net assets end of year ~ 12,083 See Notes to FInancial Statements. 2 JUN-02-2000 17: 09 HARPER. VRN. SCOJK 727 446 0504 P.08/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. BALANce SHEET September 30,1999 Au8I Calh $ 9,349 Management fee receivable 14.500 property 8nd equipment. at cost 7.180 L8SS accumulated deprecilltlon 924 N.t property and equipment 6,256 UtIlity deposits 2,784 Total aaets S 32.869 Liabllitie. and NM Abets Uabilitles: PeyroII t8xes payable $ 801 Al;;crued expenses 10,000 v Li1e d credit payable 8,210 computer 18888 payable 1,n5 TotalllabllltlM 20,788 Net ....ta: Unteatricted net assets 12.083 Totallllbilitles and net aSMts L 32.869 See Note. to Financial statements. 3 JUN-02-2000 17: 09 HARPER, UAN, SCOIK 727 446 0504 P,09/13 MARATHON ECONOMIC D!VELOPMENT COUNCIL, INC. STATEMENT OF CASH FLOWS Year ended September 3D. 1. Cuh flow. hum operating activities: Increase In net ....ts S 7,820 Adjustments to reconCile change in net assets to net cash provided by operating activiti..: Depreoiation 924 Donated property (2,500) / Changes in assets and lIabUltleS: Management fee receivable (14,500) Utility deposits (2,784) Payroll taxes payable 801 Aoc'ued expenses 10,000 Une of credit, net 8,210 Cash flows provided by operations 7,991 Cash flow. from Inve.tlng 8CtIvltl..: Purdlase of property and equipment (2,500) C..h flowa from ft.-noing aGtivftl..: Payments on computer lease (406) Net Inc...... in c:qh 5,088 C..h. beginning of y.... 4,263 Cash, end of YlNlr S 9.349 See Note. to Fln.nolal Statement&. 4 JUN-02-2000 17: 10 HARPER, UAN, SCOIK 727 446 0504 P.10/13 MARATHON ECONOMIC DEVELOPMENT COUI.ClL.INC. NOTES TO fiNANCIAL STAT!MENTS September 30, 1 t.. 1. Sum....." of SI,nlficant Aaaountl"9 Policies Oraanization and PurDose . The Marathon EconomiC Development CouncI, Inc. (CouncH) was incorpol'8t8d in the State of FIorkta in Deoember, 1995a8 a 501(0)(4). not-far-profit corporation. The COuncil's purpose encIl1'e twofold: 1 ) To prepere a blueprint to maximize the utilization of existmg resources anc:Ildentlfy speclftc opportunities for economic growth. 2) To further ensure that the CouncU's recommendatlona improve the quefity of life for residents and that recommendBtIona are consistent wflh the high.at ethice of 8 business and or personal nature. DeorecIation - Property and equipment wlttl a vatue greater than $500 and with an estimated life greater than 1 year.... rwc:orded at cost and depreci8ted ewer their estimuted useful lives which range from 3 to 7 years. DepreciatiOn expense is ClllcuIat8d on the straight-line method. In-Kind Contributions. In-kind contributions ere reoorded at the estimated fair market "alue at the date of contrIbutfon.. contribUted services are recorded at fair martcet value if provided by individuals who poaeas specialized skills. those specielized sklla are used in the services provided, and the Council would have tQ purch... the Ml'licel if not donated. The servioes of other volunteers in the c;ommunity who donete many hours of service to the COuncil. however'. are not a18igned 8 v8lue for financial ~ purposes. Functional ExDenM. . Expenses are a11oc8ted to proglllm services and admin~tnItive categories based on the nature of the expense. Income Taxes - The Council qualifies tor _..xempt status under Section 501 (c)(4) of the Intemel Revenue Code. Therefore. no proVIsIOn for income taxes Is included in the ac;c;ompanylng financial Itlitements. EstImates . The preparation of f1nandal Ntement& In conformity with generally aocepted aCCOlJJ1mlg principia requires management to make estin1ldes and aeaumptions that effect the reportecJ amounts of a&&etI and liablUtles and died.... ofcontingentauets end liabilities at the date of the financiel statements and the recorded amounts Of r.venues and expense. during the reporting period. Actual results could differ from those eetim8tee. 5 JUN-02-2000 17:10 HARPER,V~,SCOIK 727 446 0504 P.11/13 MARATHON ECONOMIC DEVElOPMENT OOUNCIL, INC. NOTES TO FINANCIAl. STATEMENTS September 30, 1_ 2. Marina Manaaement Aarument On November 12. 1998, the Council and Monroe County. Florida signed an agreement to perform management serviCes at the Boot Key Harbor Marina. The Council must keep the marina open to the public from 8:00 A.M. to 9:00 P.M. seven deys a week and perform such duties as rental of boat slips, rental ofwashlng and bath faollltJes. routr.e malnt....ce of f8ciIlt18s, and 8a1e of various boating and fishing Items. All fees and revenues collected by the CounCil related to the marina operations ere the property of Monroe County and are to be deposited into a County controled bank account on a daily basis. The County p.ya the Council a monthlyfBe of $14,GOO for the managem.,t services. The CounCil began perfOnning management servloes during FebrUary, 1999. The management agreement extends for thrM years but may be terminated by the COunty at any time If the County choOHl not to appropriate suftldent revenues to funcI the agreement. 3. Volunteer Senrices For the year ended September 30, 1999, community volunteers provided approxlma~ hours of time to 8S1iat in the Council's programs .m oversight of the marina operations. Thli~ 1$ not reftectecl In Ihe8e statements since they do not meet the criteria for b8ing recorded in the statement of activities. 4. Property end Eauimnent ProJ)erty and equipment is summarized IS follows: Inflated boGlt and motor F10eting dook Computer equipment $ 2,500 2,500 2,180 Less accumulated depreciation 7.180 924 Net property and equipment s 6.256 6 JUN-02-2000 17: 11 HARPER. UAN. SCOIK 727 446 0504 P.12Y13 MARATHON ECONOMIC DEVELOPMENT COUNCIL. INC. NOTES TO FINANCIAL STATEMENTS September 30. 1889 /? Un. ofCNdIt ~. On January 8. 1999, the Council fJigned a $60,000 line of credit with an initial variable rate of 7.75% per annum. The COllateral for the loan was an ....gnm8l"lt of the marina management agreement with Monroe County. The balance of the line ofcreclit at September 30, 1999 was $8,210. 5. The initial bol'rOWlngs against this toen were $20,000 and In agreement County. part afthe ITW\8gement fee cash flow wal used to repey these Ioanl. for start-up expenses at the marina. 6. CaDItaI Leue Oblloatlon On February 6, 1999 the Councl .m....d into a 36 month Qlpitel lease for computer equipment. The orfglnal value of the equipment was $2,914 and the lease terms require monthly payments of $81. The following summarizes the future minimum lease payments under the capitBI 188$8 crt September 30, 1999. V.. ending September 30: 2000 2001 2002 $ 972 972 324 Totel minimum lease payments 2,268 L...: amount representing inteNst (4&1) Present value of minimUm lease peyments 1.777 LeiS: current portion of capital I.... obligatim (856) Capitalleese obligation net of current portion $ 1.121 7 JUN-02-2000 17:11 HARPER,VAN,SCOIK 727 446 0504 P.13/13 MARATHON ECONOMIC DBWLOPMENT Coo"Cll, INC. NOTES TO FINANCIAL STATEMENTS September SO, 1"9 7. Function.' ~n.. Allocation: Expenses by functional classifICatIOn for the year ended September 30. 1999 were: Prognun AdminiStrative Marina manager and grwrt writer S 40,511 $ 10,130 sal.,.. and payroll taxes 21.740 UtIlities 14,471 ProfessiOnal fees 13,115 Insurance 4,728 1,180 Repairs and maintenance 6,893 AdminiStrative supplies 3.907 Cost 01 sales . Ice 1,531 Interest expense 1,259 Other 2,720 Depreciation 500 424 , 93.094 S 30.015 8. SUDDlementary Cash Plow Infonnatlon During the fiscal year the Council reeelvecl donated property used In operation with a value of S2,SOO leased computar equipment with an initial value of $2,914. In addition interest expense paid in the year totaled $1,269. 8 TOTAL P.13 **************************************************************************************************** * P. 01 * * TRANSACTION REPORT * * JUN- 2-00 FRI 5:14 PM * * * * FOR: * * * DATE START SENDER RX TIME PAGES TYPE NOTE * * JUN- 2 5:10 PM 727 446 0504 4' 07' 13 RECEIVE OK t * * **************************************************************************************************** MEMORANDUM TO: Danny Kolhage Clerk of the Circuit Court ,.,f'L'J / ',v.. FROM: Pat Blaney, Internal Auditor SUBJECT: Marathon EDC/Florida Keys Marina DATE: July 5, 2000 After attempting to reconcile the Marathon EDC audit figures to the monthly revenue and expenditure reports accompanying the EDC's invoices, it appears that the audit must cover other activities besides Florida Keys Marina. To reconcile the EDC figures to the Marina would require, at a minimum, the answers to the following questions: What other activities did the EDC conduct during this audit period? What did these other activities cost? How much revenue did they produce? Note 5 to the financial statements mentions a $60,000 line of credit, against which $20,000 was initially borrowed. The monthly expenditure reports show repayment of principal totaling $20,000 to Sept. 30, the end of the audit period. Yet, at that point principal outstanding was $8,210. This raises the following questions: What was the gross amount of money borrowed against the line of credit during the audit period? Were any borrowed funds used for activities other than the marina? What specifically were the borrowed funds spent on? Who's the lender? You may also want to ask the provider of the monthly revenue and expenditure reports what the sources of those figures are. MEMORANDUM TO: James L. Roberts County Administrator FROM: David S. Koppel 11P County Engineer (JJI\.. DATE: June 5, 2000 RE: Florida Keys Marina, Marathon Attached please find the audit of the Marathon Economic Development Council operation of the above-referenced subject. If I understood correctly, the auditor's report indicates that the financial statements of the MEDC are in conformity with generally accepted accounting principles. By copy of this letter we are transmitting a copy of the audit to the office of the Clerk of Courts for their review and comment. Please let me know who else to send this to. Thanks. ::r 0 ~ :P ::00.2 Or-Z /'TIx-< C"')' r- OC"')- C:::i;:x :z:. 0 """or- :<-.:x: ....,. ::> r- 0 II> f'I1 DSK/jl MthnAuditJLR.DOC Cc: Danny Kolhage V' Jim Hendrick Dent Pierce o o ~ '1 en ~ :::::!- r- "" o "'"r'J <:) ::0 ::0 I'll ("') C) ::0 o .c-;, "" 0, ....,. JUN-02-2000 17:07 727 446 0504 P.01/13 0IlII0 o.IlltIION. JR.. c:.PA JOHN 11. fi_ .... c.P..... ,_, ttAICOO<,.<;.P.A IDC 5. 1-WlP5ll. C PA M ICOrT r.tOCR. c: P" CItfolll.E$ O. RIGGS 11. C;P'" I t.Wr SCHAifJfI. C.P.A. IMlIfll c;: ..... seCl!. C.P "- CIIAIUS w. WH&t$'O~. e,... CPAs ANIl BUSINESS ADVISORS ...... flOllll:lA NllIUlr OJ CfJl1ll'Im flUlUC ACCOUNTANT~ 2111 DREW srAEiT . P.O. 8O11 04989 . CLEAAWAlER. Fl.OAIDA ~768-4989 rflfPHON! (727) 446.cm4 . FAX 027) 461-7~ Emoll: tMlnfoOhv1~.com -Internllt: 1'Ittp"/WWwJl\'S-c:QQS.c:om MllGlCNt INSI'lIUlE ~ aIlIHO PuU: ACCQUN"'Nlli SEe; AM) M\IW COI.tl'lo\Nfs PIACflCIIECIIOId FACSIMILE MACHINE (FAX) TRANSMITTAL COVER LETTER DATE: 1}1/'2..000 TO:. \)~ ~ , cOMPANY:~ ~ ~...-o.~ D:'fIJ~ FAX NUMBER: -.J -"3 oS -2'5 - \13."2.- I . NUMBER OF PAGES \...... (INCLUDING TRANSMITTAl SHEET); ~ ~ __ lA-A-.f- FROM: . ~ TRANSMITTER: ~~~~;l~h.~ i-f',~ J5....~ HARD COPY WILL V<t WILL NOT [ ) FOUOW BY MAIL The Information in this facsimle may be confidential. The information is intended oniy tor the use of the individual to whom it is addressed. If you are not the intended reclplent. you are hereby notifted that any use; dissemination. distribution or copying of this communication is strictly PJ'Ohfbited. If you have received this facsimile In error. please immecl;.tely notify us by telephone (collect If necessary) and retum the original message to us at the address .bove VIA the U.S. Postal Service. Thank you. A UWIEP Of . INliIlroWIC"fIAL ^ Wt"JQt r~nF f.l/'I(;ANJATlON ('ll ACCOUNhNC rlRMS AND IIIl!'HSS AOVI5a1S JUN-02-2000 17:08 HARPER,VAN,SCOIK 727 446 0504 P.02/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. FINANCIAL STATEMENTS SepbHnber30,1999 JUN-02-2000 17:08 HARPER, VAN, SCOIK 727 446 0504 P.03/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL, INC. TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS Statement of Aotivities Balance Sheet statement of Cash Flows Notes to Financial Statements 2 3 4 5 JUN-02-2000 17: 08 HARPER,VAN,SCOIK 727 446 0504 P.04/13 IN.DEPENDENT AUDITORS' REPORl" HARPER,VAN,SCOIK et:~ ~fJJrftjJ(Jny. L L P 727 446 0504 P.05/13 JUN-02-2000 17:08 ClA\I1D D. 8URI'ON. JR.. c.P.A. JOHN H. GllAHAM. JR.. c.P.A. FANIK J. HANCOCK. C.P.A. QEX E. HAIlPEA. C.PA M. SCOTT MOOAE.C.P."" O1i'AI..O g. IllGG$ UI. C.P"" ~. t.WT SCHMIftR. CoP'" wuEP ~. VAN $COl(. CollA CHAQlS W. WHElJKlNE. C.P."" CPAs AND BUSINESS AOVISORS MEMeERS I'LOADA MllMf OF Cl;Il1lFllil) P\J8UC ACCCUNTANlS 2111 DREW!imEET . P.O. BOX 4989 . ClEARWAtER. Fl.ORIDA 33758-4989 TELEPHONE (72n 44J6.Q504. FAX (71) 461-7384 EITlQII: tMlnfoOtM~Q$,OQll1 . Internet: http://WWw.~gQlTl ~ IN$ft1VIIi OF csmflED PUIUC ..o:QUNt.t.N1$ EANO ~ COMl"Nlle$ I'lfA(;fICE SECTIONS The Board of Directors Marathon Economic Development CouncJl, Inc. Marathon, Florida INDEPENDENY AunrroRS' REPORT We have audited the accompanying balance sheet of Marathon Economic Development Council, Inc. as of September 30, 1999, and the related statements of activities and cash flows {or the year then ended. These financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accardancewith generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. AA audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management. as well as evaluating the overall financial statement pret;entation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly. in aD material respects. the financial position of Marathon Economic Development Councl, lno. as of September 30, 1999, and the changes in net assets and cash ftows for the year then ended in conformity with generally accepted accounting principles. k, 1.1"",, U~ ~, LLP Aprii 15,2000 AMEMllEROF . ~ A W01'll1>WD: ORGANlZAllON OF ACCOIJNTING FIRMS MID llUSINESS ADVISORS JUN-02-2000 17:09 HARPER, VAN, seD I K 727 446 0504 P.06/13 FINANCIAl.. STATEMENTS JUN-02-2000 17:09 HARPER, VAN, SCOIK 727 446 0504 P.07/13 MARATHON ECONOMIC DEVeLOPMENT COUNCil. INC. STATEMENT OF ACTIVITIES Year ended September 30.1999 UnrmltrlmAd Revenues: Marina management fees $ 112.300 Corporate donations 16,032 Donated property 2.500 Interest income 97 Total revenue. 130.929 Expenses: Marina manager and grant writer 50.641 Salaries and payroll taxes 21,740 Utilities 14,471 ProfesSional fees 13.115 Insurance 5.908 Repairs and maintenance 6.893 Administrative supplies 3.907 Cost of sales - ice 1,531 Interest expense 1,259 Other 2,720 Depreciation Q~4 Total expenses 123,109 Increase in net assets 7,820 Net assets, beginning of year 4.263 Net assets end of year $ 12.083 See Notes to Financial Statements. 2 JUN-02-2000 17: 09 HARPER. VRN. SCOIK 727 446 0504 P.08/13 MARATHON ECONOMIC DEVELOPMENT COUNCD..INC. BALANCE SHEET September 30.1999 AI_ See Now. to Finanoial 8t8tements. 3 JUN-02-2000 17:09 HARPER. V~. seD J K 727 446 0504 P.09/13 MARATHON ECONOMIC D!VElOPMENT COUNCIL, INC. STATEMENT OF CASH FLOWS Year ended September 30. 1111 Cash flow. from operating activities: Increase In net UMt8 $ 7,820 Adjustments to reconcile change in net assets to net CS$h provided by operating activities: Depreciation 924 Donated property (2,500) Changes in assets and Ii8bDftl8S: Management fee receivable (14,500) Wity deposits (2.784) Payrtlll taxes payable 801 Accrued expenses 10.000 LIne of credit, net 8,210 Cash flows pfOYtded by operations 7.991 Cuh flows from Inve.tlng -=tivitl..: Purchase of property and equ~t (2,500) Cash f10W8 from finMOing aGtiYltle.: Payments on computer lease (406) Net Increa.. In cuh 5,088 C.sh. beginntng of Y"" 4,263 Cash, end of y.... S 9.349 See Notes to Flnanolal Statement&. 4 JUN-e2-2000 17: 10 HARPER,UAN,SCOIK 727 446 0504 P.10/13 MARATHON ECONOMIC DEVELOPMENT COU"CII..INC. NOTES TO fINANCIAL STAT!MENTS Seplembll' 30, 1 tie 1. SUmmary of Significant Accountlna PorlCies amanization and Puroose. The Marathon Economic Development Ccud, Inc. (COUncil) was incorporated in the State of Florida in Deoember, 1995 al8 601(0)(4). not-for-proflt corporation. The COUncil', purpoH end are twofOld: 1) To prepere a blueprint to maxim~ the utilization of exi$tk1g resources and identify specitlc opportunities for economic growth. 2) To further ensure that the Council'. recommendations inprove the quelity of life for residents and that rQCOmmendBtlana .... consilient with 1he highest ethica of a business and or personal nabI'e. Derlreciation - Property III1d equipment wttn a vllue greater than $500 and WIh an _mated life greater than 1 yetIIare I'8COt"ded at cost and depreciated tNer their estimated useful lives which range from 3 to 7 years. Depreciation upense is caicul8t8d on the straight-line method. In-Kind Contributions. In-kind contributicn8 are reoorded at the estimated fair market wIue at the date of contrIbuUon. contribUt8d I8YiCes are recoJded at fair mar1c8t vakJe if provided by individuals who ponea8 specialized skills. those specialiZed akIIe are used in the servtc:es provided, and the Council wauId have to purchae the sanrice. If not donated. The seMon of other volun1eeta in the c;ommunly who donate rneny hDUnl of service to the COuncil. however, are not asaigned 8 value fer financial reporting purposes. Functional Expenee, . Expenses ani a110catecl to program services and administrative categories based on the nature of the expense. looome Texes . 1h8 Council queliftes for tax-exempt status under Section 501 (c)(4) of the Internal Revenue Code. Therefore. no PR)V181on for income taxes Is i'lcIuded in the ac.oompanylng financial ltatements. Estimates . The preparation of f1nandal ctatemonts In conformlty with generally aoceptecl accounting principt. requires m&'18gement to make es1imetes and MSumptlons that effect the reponed amounts of asaeta and liabiltles and dIsdoIure ofcantingentaaets 8nd lillbilitiet 8th date of the fiMnCi81 statements end the recorded amounts of revenues;nt expenlI8I du1ng the MpOrtlng period. Actual results could differ from those estimates. 5 JUN-02-2000 17: 10 HARPER. VAN. SOOIK 727 446 0604 P.11/13 MARATHON ECONOMIC DEVELOPMENT COUNCIL. INC. NOTES TO FINANCIAL STATEMENTS Septembet 30, 1_ 2. Marina Manaaement Aal'Hmem: On November 12, 1998. the Council and Monroe County; Roricla signed en agreement to perform management serviCes at the Boot Key Harbor Mama. The Council muat keep the marina Dpen to the public from 8:00 A.M. to 9;00 P.M. seven days a week and perform such duties as rental of boet slips, rental ofwalhlng snd bath faoIIlIIes. rouh malntenence off8clltilS, and 8818 ofvarious boating end fishing ItemS. AI feels and revenues ClOIIected by the CounCil related to the marina operations .-e the property of Monroe County and 81'8 to be depOlItec:l into a County controIedbank account on a daily basis. The County paya the Ca&n:Il a monthlyfBe of $14,600 for the management services. The COlI1CII began perfOrming management services during February, 1999. The management agreement .... for tine Y'" but may be terminated by the County at any time If tne County chooses not to appropriate suftldent revenues to fUnd the agrMment. 3. Volunteer Services For the year ended September 30, 1999. community volunteers provided approxlmallely 250 hours of time to assist in the Counci's progrwns ... 0V8r8ight of the marina operations. This time is not reftectecl In IheS8 statements since they do not meet the cr1terta for being recorded in tha statement of activities. .... Pl'ODerty ~ EauiDment property and equipment Is summarized as folows: Infl8ted boat and motor FIoeting dock Computer equipment $ 2,500 2,500 2,180 Less accumulat8d dspredation 7,180 924 Net property and equipment s 6.256 6 JUN-02-2000 17: 11 HARPER.VAN.SCOIK 727 446 0504 P.12/13 MARATHON ECONOMIC DEV&LOPMENT COUNCL. INC. NOTES TO FINANCIAL STATEMENTS September 30, 1888 5. Une of Credit On January 8, 1999, the Councilaigned a $60.000 line of credit with en initial variable rate of 7.75% per annum. The collateral for the 1081 W8tI an 8I8Igrvnent of the marina management agreement with Monroe County. The balance of the Ine of crecIit at September 30, 1999 was $8,210. The initial borrOwings against this loen were $20,000 and In an B&reement wllh Monroe County. part of the I1W18gement f. cash flow _. used to repay these loans. The funds were used for star1-UP expenses at the marina. 6. CaDItaI Leue Obligation On February 6. 1999 the Councl entered into a 36 month oapilallease for computer equlprnenL The orIgnal value of the equipment was $2.914 and the lease terms require tnonthty payments of $81. The following auinnwizes the future minimum Ieaso payments undw the capibd lease at September 30, 1999. V... ending September 30: 2000 $ 972 ~, sn 2002 324 TotaJ mininun lease payments 2.288 LeiS: amount representing Mnst (4W Present value of minimum lease peyments 1.777 LeiS: current patlan of capital I.... obligation (656) Capitalleeae obligation net of current portion S 1.121 7 JUN-02-2000 17:11 HARPER.VAN.SCOIK 727 446 0504 P. 13/13 MARATHON ECONOMIC DIWLOPMENT COUtlCIL, INC. NOTES TO FINANCIAl. STATEMENTS September 30,1999 7. Functional Elmen.. Allocation: Expenses by funCtiOnal classIfICatIOn for the year ended September 30. 1999 were: Proonm Admi'\lstrattve Merina manager and g&nt 'Writer $ 40,611 $ 10,130 SIlMH and payroll taxes 21.740 UtilitiBS 14,471 Prof8$SiOnal fees 13,115 Insurance 4,728 1.180 Repairs and mainten8flCe &,&93 AdminIstratIVe suppHes 3.907 Colt of sales . Ice 1,531 Interest expense 1,259 Other 2,720 Depreciation 500 424 S 93.094 S 30.015 a. SUDDlementaty Cub Plow Information During the fiscal year the Council recelwcI donated property used In opereIion with a value of 52.SOO leased comput8r equipment with an Initial value of $2,914. In addition interest expense paid in the year totaled $1,259. fin ()w <MtuA-'~" /RCt1J O/S ~s rJ7 C<,U ~ Ef) ( o ~ a t7ft/c 7f.u,.. 8 TOTAL P. 13 ***************************************************************************************************1 * P. 01 ~ * TRANSACTION REPORT * * JUN- 2-00 FRI 5:14 PM ~ * * * FOR: .~ * * * * * ***************************************************************************************************r. DATE START SENDER RX TIME PAGES TYPE NOTE JUN- 2 5: 10 PM 727 446 0504 4' 07' 13 RECEIVE OK , MEMORANDUM TO: Danny Kolhage Clerk of the Circuit Court FROM: Pat Blaney, Internal Auditor SUBJECT: Marathon EDC/Florida Keys Marina DATE: July 5, 2000 After attempting to reconcile the Marathon EDC audit figures to the monthly revenue and expenditure reports accompanying the EDC' s invoices, it appears that the audit must cover other activities besides Florida Keys Marina. To reconcile the EDC figures to the Marina would require, at a minimum, the answers to the following questions: What other activities did the EDC conduct during this audit period? What did these other activities cost? How much revenue did they produce? Note 5 to the financial statements mentions a $60,000 line of credit, against which $20,000 was initially borrowed. The monthly expenditure reports show repayment of principal totaling $20,000 to Sept. 30, the end of the audit period. Yet, at that point principal outstanding was $8,210. This raises the following questions: What was the gross amount of money borrowed against the line of credit during the audit period? Were any borrowed funds used for activities other than the marina? What specifically were the borrowed funds spent on? Who's the lender? You may also want to ask the provider of the monthly revenue and expenditure reports what the sources of those figures are. '0 a ~ c:: - 0' <II ~ ..... ..... ...... ...... W W -:,:..-:,:.. 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Expenditures: Mar marine facility 114,064.21 insurance office supplies utilities petty cash maintenance cost of goods (ice) loan-principal loan-interest profssnl. & accntg. cap. improvemts. employees 1,025.74 miscellaneous 5,908 3,907 14,471 6,893 1,531 1,259 13,115 72,381 2,720 5,356.23 large payment 1 st month 3,665.04 over $400/mo. 3 out of 8 months 16,801.35 phone portion higher than office supplies 1,250.00 $200/month each of 1 st five months 2,197.38 1,511.50 August (hot, lobster season) was lowest month 20,000.00 balance sheet item-still owe $8,210 @ 9/30 821.80 difference could be capital lease interest 1,400.00 6,622.51 48,725.87 3,947.72 total 115,089.95 122,185 112,299.40 1l9annp lL. ~olbagt BRANCH OFFICE 3117 OVERSEAS IDGHWAY MARA mON, FLORIDA 33050 TEL (305) 289-6027 FAX (305) 289-1745 CLERK OF THE CIRCUIT COURT MONROE COUNlY 500 WHITEHEAD STREET KEY WEST, FLORIDA 33040 TEL. (305) 292-3550 FAX (305) 295-3660 BRANCH OFFICE 88820 OVERSEAS IDGHWAY PLANTATION KEY, FLORIDA 33070 TEL (305) 852-7145 FAX (305) 852-7146 September 6, 2000 Dave Koppel, County Engineer Public Service Building 5100 College Road Key West, Fl 33040 Dear Dave: In response to the conversations that we have had concerning the audit of the Florida Keys Marina, I have asked my Internal Audit Department to do a cursory analysis of the audit in relation to the montWy reports that are filed pursuant to the contract. I am enclosing herewith a copy of a memorandum to me from Pat Blalney of my Internal Audit Department together with a spread sheet which outlines his review. Mr. Blaney raises several questions as a result of his analysis which you as the contract manager should pursue. I apologize for the delay in getting this information to you, however; my internal audit staff has been very busy the last several months on other matters. Should you have any further questions concerning this matter, please do not hesitate to contact me. Sincerely yours, -\d~ · Danny L:--KeIhage Clerk of Court and ex-officio Clerk to the Board of County Commissioners cc: James Roberts, County Administrator James Hendrick, County Attorney Sheila Barker, Senior Director - Human Resources! Acting Senior Director- OMB Sandee Carlisle, Finance Director O!!,~ ~2~~E (305) 294-4641 BOARD OF COUNTY COMMISSIONERS MAYOR George Neugent, District 2 Mayor Pro Tern Nora Williams, District 4 Charles McCoy, District 3 Murray E. Nelson, District 5 Dixie M. Spehar, District I Office of the County Attorney PO Box 1026 Key West, FL 33041-1026 305/292-3470 - Phone 305/292-3516 - Fax MEMORANDUM TO: Pam Hancock Deputy Clerk FROM: Suzanne A. Hutton ~ Assistant County Attorney DATE: August 30, 2001 SUBJECT: Marathon Economic Development Council ********************************************** Enclosed please find a notice of termination of the management agreement between Marathon Economic Development Council, Inc. and Monroe County. This termination agreement is effective as of the close of business on August 31, 2001. Accordingly, it is not necessary for any document other than the QuitClaim Deeds for the Boot Key Harbor Marina and the Harbor to be executed. Accordingly, please have the deeds for the Harbor and Marina executed, recorded and returned to me for delivery to the City of Marathon. Thank you for your assistance in this matter. SAH:ss Enc. / RECEIVED Marathon Economic Development Council, Inc. dba Marathon Community Council AUG 2 7 2001 COUNTY ADMINISTRATOR P.O. Box 622582 Marathon Shores, FL 33062 Phone: 305-289-7788 Cellular: 305-78&3566 Fax: 305-289-8876 August 2~ 200:1. Mr. James L. Roberts Monroe County Administrator 5100 College Road Key West, FL 33040 Dear Mr. Roberts: On August 21, the board of directors of the Marathon Economic Development Council (MEDC) directed termination of the management agreement with Monroe County as of close of business August 31, 2001. This decision was made in anticipation of the transfer of the Florida Keys Marina property to the City of Marathon. We appreciate the opportunity that the County has awarded the MEDC to serve our cOmmunity by developing the Marina over the past several years. We are prepared to assist the City and County to accomplish a smooth and efficient transition to City management effective September 1. We hope the outstanding grants and project commitments will transfer unencumbered. Thank you for your assistance over the past years. Sincerely yours, ~~ President .. ,.-J .:...' ,'. /.~ ", zqrq --.:..:_~~-------==oo_,.____.___ Marathon Economic Development Council, Inc. dba Marathon Community Council P.O. Box 522582 Merathon Shores, FL 33052 Phone: 305-28~7788 Cellular: 305-786-3568 FlIlC 3050258878 August 2j., 2001. Mr. Craig A Wrathell, City Manager City of Marathon 10045-55 Overseas Highway Marathon, FL 33050 Mr. Wrathell: We were very disappointed that the Board of County Commissioners, in their last meeting, did not decide on a time frame for the proper noticing of the non-appropriation clause of our management agreement. It now appears this will take a little more time to settle out legal interpretations before any assurance of timing. We are still planning for an August 31st transition date \1pon which we will turn over the management of the Marina to the City. It was suggested at the August 1,2001 Council Meeting, that the MEDC join with the City staff as a transition team to promote a smooth transfer. On July 18,2001, we sent a letter to you requesting a meeting including several attempts by Marina Manager DeLashmutt asking Mr. Adams for a planning meeting with the MEDC. We feel that it is critical to resolve key issues or points requiring negotiation and detailed discussions. Perhaps we should meet to finalize a transition. Absent this, we will continue moving in a direction of an orderly termination of our agreement and a potential halt of Marina public services at the close of business on August 31, 2001. Sincerely yours, ~.~ Dr. David P. Rice President FIOdda lB. Marina-Marathon A Mlnrl. ClunlY Facility Managld by lbeMaralben Ecenemm DenllPment Cluncil 800 35th Street, Ocean Marathon, Florida 33050-2333 Located on Boot Key Harbor Dockmaster: 305-289-8877 Fax: 305-289-8876 Manager : 305-289-7788 E-mail: flkeysmarina2@marathonkey.com September 7, 200 1 Mr. Danny Kohlage Clerk of the Court Monroe County Florida Dear Mr. Kohlage: The Marathon Economic Development Council, as a management entity, is required by our management agreement with the County to perform annual audits by a CPA no later than 3 months after the end of each fiscal year. The agreement as written, does not stipulate any close out audit requirements. However, we have just recently retained and auditor to conduct a fmal audit up to the date of our agreement termination of August 31, 2001. This particular audit will cover a period of eleven months and will be sent to you as soon as it is completed. It is not expected to take longer than three months to complete. If you have any concerns or questions regarding out closeout audit, please contact Mr. Bruce Popham at (305) 743-6341. Sincerely, ~t(fJt#-- Harry A. DeLashmutt Marina Manager cc: Bruce Popham David Rice SCU7~ (!.~