Miscellaneous
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MONROECOUNTYTOUR~TDEVELOPMENTCOUNC~
MEMORANDUM
DATE:
January 12, 1999
Beth Leto ~~
Lynda Stuart i \ \ \)
TO:
FROM:
RE:
FY '98 TDC BUDGET - DISTRICT II ALLOCATION
The District II Advisory Committee (DAC II), the TDC and the BOCC approved the following
line items covering salary and related expenses under the Third Penny of the TDC budget:
Salary
FICA
Retirement
Group Insurance
Worker's Comp
total
Allocated & Approved
$10,333
800
1,900
2,460
150
$15,643
This was the total amount approved for this position in fiscal year 1998 (October 1, 1997
through September 30, 1998). If additional funding for this specific position was required,
procedure dictates that a request be made before DAC II with subsequent recommendations
being approved by the TDC and finally the BOCC. To my knowledge this procedure was not
followed in this specific instance. To avoid a similar problem in the FY '99 budget, procedure
should be followed as outlined above.
Therefore, any amount over and above the approved budget should not be incurred by
the TDC.
By copy of this memo, I am requesting that the amount over and above the approved budget
as indicated on the attached document be credited to the TDC fund.
cc Danny Kolhage
Sandy Carlile
Jennifer Hill
Michael Ingram
3406 N. Roosevelt Blvd, Suite 201 F.O Box 866 Key \,yest, Florido 3304] U.S.A. (305) 296-1552 Fox: (305) 296-0788
http//flo-keys,com KEYSSALES@AOLCO,'A
12/17/98 MONROE COUNTY BOCC PAGE 1
ACCOUNTING PERIOD: 13/98 FND/COST CTR EXPENDITURE STATUS
SELECTION CRITERIA: expledgr.key_orgn:'71002'
FUND - 118 - TDC DISTRICT 2,3 CENT OFCL/DIV - 1050 - TOURIST DEVELOPMENT COUNC
FUNCTION - 5500 - ECONOMIC ENVIRONMENT FND/COST CTR - 71002 - TDC BRICKS & MORTAR 118
ACTIVITY - 5520 - INDUSTRY DEVELOPMENT
PERIOD ENCUMBRANCES YEAR TO DATE AVAILABLE YTD/
ACCOUNT - TITLE - - - - - BUDGET EXPENDITURES OUTSTANDING ENC + EXP BALANCE BUD
510120 REGULAR SALARIES & YAGES 10,333.00 501.62 .00 12,175.74 -1,842.74 1.18
510210 FICA TAXES 800.00 33.46 .00 808.45 -8.45 1 .01
510220 RETIREMENT CONTRIBUTIONS 1,900.00 82.51 .00 2,085.99 -185.99 1 .10
510230 LIFE AND HEALTH INSURANCE 2,460.00 451.00 .00 2,706.00 ............ -246.00 1.10
510240 YORKERS' COMPENSATION 150.00 184.33 .00 760.18 "" -610.18 5.07
TOTAL PERSONAL SERVICES 15,643.00 1,252.92 .00 18,536.36 -2,893.36 1.18
530340 OTHER CONTRACTUAL SERVICE 55,000.00 380.00 .00 4,560.00 50,440.00 .08
530430 UTILITY SERVICES 4,590.00 .00 .00 2,259.09 '2,330.91 .49
530460 REPAIR AND MAINTENANCE .00 .00 .00 .00 .00 .00
530480 PROMOTIONAL ACTIVITIES .00 .00 .00 .00 \ .00 .00
TOTAL OPERATING EXPEND/EXP 59,590.00 380.00 .00 6,819.09 52i770.91 .11
TOTAL TDC BRICKS & MORTAR 118 75,233.00 1,632.92 .00 25,355.45 49)'77 .55 .34
TOTAL TOURIST DEVELOPMENT COUNC 75,233.00 1,632.92 .00 25,355.45 49,877.55 .34
TOTAL INDUSTRY DEVELOPMENT 75,233.00 1,632.92 .00 25,355.45 /9,877.55 .34
TOTAL ECONOMIC ENVIRONMENT 75,233.00 1,632.92 .00 25,355.45 49,877.55 .34
TOTAL TDC DISTRICT 2,3 CENT 75,233.00 1,632.92 .00 25,355.45 49,877.55 .34
TOTAL REPORT 75,233.00 1,632.92 .00 49,877.55 .34
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RUN DATE 12/17/98 TIME 16:35:46
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MONROE COUNTY TOURIST DEVELOPMENT COUNCIL
MEMORANDUM
DATE:
January 12, 1999
TO:
FROM:
Danny Kolhage .0(\(\(\0
Lynda Stuart J\ " --
RE:
OUR CONVERSATION TODAY
I appreciate your phone call this morning expressing your concerns on several issues
pertaining to TOC and/or the 3406 North Roosevelt Boulevard Corp.
I am confident that you will be able to assist us in resolving a number of issues some of which
were outlined in Mr. Ingram's memo requesting a meeting.
You briefly touched on a couple of items relating to the corporation, one of which was a
reimbursement to a staff member for a course taken at the college. This specific item is part
of Exhibit B (copy attached) of the corporation's contract with the BOCC. Travel expenses,
familiarization related costs are also covered on this exhibit which were additional items that
you mentioned but did not go into detail. Up to the point of your call, we were unaware that
the procedure we were following was inappropriate as it related to seeking reimbursement
through the Corporation.
I am also enclosing a copy of a package I forwarded to Karin on December 18, 1998, wherein
I outlined the documentation that we understood was required of this office when submitting
various types of reimbursements. Upon receipt of a response, I will develop a written
procedure for our staff.
I look forward to our meeting so that we may develop procedures beneficial to all concerned.
attachments (Exhibit B - 3406 North Roosevelt Blvd. Corp. Contract)
package faxed to Karin on 12/18/98
")--1-06 N. Roosevelt Blvd. Suite 201 PO Box 1:\66 Ke)! West, Florida 3:)041 USA. (305) 296-1552 Fax: (305) 296-0788
http//f1a-keys.com KEYSSALES@AOLCOM
OK~~ETrY ~O~~3~~E
(305) 294-4641
County Attorney
310 Fleming Street
Key West, FL 33040
(305)292-3470
DATE:
June 27, 1994
TO:
Danny Kolhage
Clerk of the Courts
FROM:
HEMORANDUM
Suzanne A. Hutton
Assistant County Attorney
..~
RE:
BOARD OF COUNTY COMMISSIONERS
MAYOR, Jack London, District 2
Mayor Pro Tern, A Earl Cheal, District 4
Wilhelmina Harvey, District 1
Shirley Freeman, District 3
Mary Kay Reich, District 5
t~'tJ -$iKJ~ f\~
Expenditures of 3406 North Roosevelt Boulevard Corp.
Questions about permissible expenditures on behalf of 3406 NRBC
keep recurring. As the result of some research, I have concluded
that expenditures which are reasonable and which are ordinary or
necessary to the operation of business in the corporate format
are permissible expenditures of tourist development tax funds for
the operation of 3406 NRBC.
The corporation was created for the purpose of providing an
administrative instrument of the TDC of the County. It has one
purpose in its Articles of Incorporation, to wit: Promoting
tourism in Monroe County. Additionally, the Articles provide a
condition that' it shall not carryon any activities not permitted
to be carried on by an organization exempt from Federal Income
Tax under IRS 50l(c)(3). 18 Am. Jur.2d Corporations ~ 30
provides that public corporations are those which have been
"created for public purposes only, connected with the
administration of the government." at p. 823. Two tests of
whether a corporation is public are control by the government and
sole funding through public funds. Although it is not stated
anywhere that the corporation is entirely subject to the control
of the County Commission, in reality, the Commission does control
the corporation through control of its funding and the authority
to appoint TDC members who are also the directors of the corpo-
ration.
Since corporations do not legally exist without complying with
relevant state laws, those expenditures necessitated by govern-
mental regulations, such as filing fees required under Chapter
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607, FS, or copying and certifying fees required under Chapter
15, FS, would be reasonable, ordinary, and necessary to the
transaction of business in the corporate form. Accordingly, such
fees would be permissible expenditures under ~125.0l04(5) and
(9). The corporation contracts only with the County and has
County funding as its sole source of revenue, and the contract
between the County and the corporation does not provide for any
profit or overhead bllt merely for payment of salaries and related
fringe benefits, and "reasonable corporate expenditures
reimbursable under County's guidelines and policies as applied to
the" corporation. The reimbursable expenditures for the corpo-
ration should include all expenditures necessary to do business
as the corporation , including filing fees, fees for an accoun-
tant to prepare tax returns, as well as such entertainment and
travel expenses as are allowed under ~125.0l04(9), FS.
Additionally, it has been queried whether it is possible for a
petty cash fund to be established or an amount to be placed in
the corporate bank account to cover unforeseeable expenditures
for items necessary to continue business uninterrupted. For
instance, while some items might be obtained through purchase
orders such as fuses or batteries for desk top computers or other
equipment, when, due to a lack of foresight or absence of a key
employee to process paperwork, such items are unavailable and
immediately needed, some money should be on hand to allow the
administrative office to obtain the necessary items. The current
inability of the corporation to handle these matters out of its
own capital is due to the public nature of the corporation and
its reliance on the County as its sole source of funding.
9l25.0l04(9)(a) authorizes the County's tourism promotion
agencies to "provide, arrange, and make expenditures for trans-
portation and other reasonable and necessary items and
services in connection with the performance of promotional
and other duties of the agency." There is a provision in that
same subsection that "operational or promotional advancements, as
defined in 9288.35 (4), obtained pursuant to this subsection,
shall not be commingled with any other funds. ~288.35(4) defines
operational and promotional advancements as "Any advance of state
fun~s which are ~raW? from the State Treasury for the purpose of
pay~ng legal obl~gat~on of the state on a cash basis." The state
legis lature apparently contemplated that the county's tourism
promotion agencies be able to obtain operational or promotional
advancements, as long as they are not commingled with any other
funds. This may require that the corporation have a separate
bank account for an advancement deposit, from which any amount
necessary to cover an expenditure out of the regular operational
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account be transferred upon appropriate documentation and subse-
quent replenishment. I am sure that you can develop whatever
criteria are needed to ensure against the prohibited commingling
of funds.
Reimbursement of the funds would be subject to submission of an
invoice and appropriate support documentation. Since we do have
a provision in the contract for the provider to repay any amount
of an audit exception, the County could require that unacceptable
expenditures be covered by the persons responsible for such
expenditures if they do occur.
If you have any questions or comments, please feel free to call.
SAH/jeh
cc: Mayor Feiner
Lynda Stuart
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TEL:
Jun 02,94
11:04 No.008 P.Ol
3406 NORTH ROOSEVELT BOULEVARD CORPORATION
MEMORANDUM
Date:
To:
June 2, 1994
Suzanne Hutton
From:
Re:
Lynda Stuart
3406 North Roosevelt Boulevard Corporation
Further to the amendment to the corporation contract. I discussed the
items with Mr. KoJhage that are presently not allowable on behalf of the
corporation.
As noted in your memo d1ted October 6, 1993 to Mr. Danny Kolhage, ClerkJ
..."this memorandum regarding permissible expenditures relates solely to
this particular situation and no other since the 3406 North Roosevelt Blvd.
Corp. was created solely for the purpose of providing administrative
services for the TDC of Monroe County and since Sec. 125.0104, FS has
special expenditure authorly-aHon not generally applicable to County
business. II
The memo further states that ... "filing fees for corporate activities such as
filing a change' of regist.ered agent..".
In short, it would be appreciated if you could establish if there is any
method in which expenses incurred by the corporation such as accounting
fees (tax retunls); annual corporation fees (State of Florida). possible
outside legal assistance (if ever required), bank charges. cost of purchasing
checks (bank has been supplying them at no eharge to date), etc. may be
covered under the Administrative portion of the bed tax revenues keeping
in mind, of course, that the corporation has no other source of funding.
Thank you again for your assistance in t.his maUer.
CC Mr. Danny Kolhage, Clerk of the Circuit Court
THE FLORIDA KEYS
&KEYWE5I~
Key Largo, Islamorada, Marathon, Lower Keys, Key West
MEMORANDUM
Date:
May 19,1994
Mr. Danny Kolhage
Mayor S. J. Feiner/Lynda Stuart
Assistance re: 3406 North Roosevelt Boulevard Corp..
To:
From:
Re:
Listed are items that require special attention by the corporation and can prove to be
time consuming and awkward to participate with private industry:
· advance payment to secure airline tickets for Pow Wow Fam participanti:> (also
Bonnie has to collect all boarding passes etc. $900)
· shell necklaces - vendor wouldn't accept purchase order - SNA
· overdraft charges
· advance cost of setting up S & M functions
· purchase of small items for the administrative office - batteries/fuses
· c.o.d's
· purchase of computer equipment/software/hardware MAC to get best price
· insufficient postage
· policy re: reimbursement of travel expenses on employee's credit card cannot be
facilitated until the employee can prove payment of same
· S & M opportunities that present themselves that require advance payment to
participate
· ability for staff to participate in education classes/seminars/workshops to develop
and advance work relates skills
· ability to purchase training videos and educational aids
3406 N. Roosevelt Blvd. Suite #201 P.O. Box 866 Key West, FL 33041 U.S.A. (305)296-1552 . Fax: (305)296-0788