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<br /> <br />TO: <br /> <br />Via: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />RE: <br /> <br />City of Sunny Isles Beach <br />18070 Collins Avenue <br />Sunny Isles Beach, Florida 33160 <br /> <br />(305) 947-0606 City Hall <br />(305) 949-3 113 Fax <br />(305) 947-2150 Building Department <br />(305) 947-5107 Fax <br /> <br />City Commission <br />Norman S. Edeleup, Mayor <br />Lewis .J. Thaler, Vice Mayor <br />Roslyn Brezin, Commissioner <br />Gerry Goodman, Commissioner <br />Danny Iglesias, Commissioner <br /> <br />A. John Szerlag, City Manager <br />Hans Ottinot, City Allorney <br />Jane A. Hines, City Clerk <br /> <br />MEMORANDUM <br /> <br />The Honorable City Commission <br /> <br /> <br />A. John Szerlag, City Manager <br />Douglas Haag, Assistant City Manager-Finance \)~ <br /> <br />June 19,2007 <br /> <br />AGREEMENT TO PERFORM FIXED ASSET INVENTORY SERVICES <br /> <br />RECOMMENDATION: <br />Approve the attached agreement and resolution with American Appraisal Associates to conduct a <br />fixed asset inventory for the City in accordance with generally accepted accounting principals. <br />Services and deliverables are to be provided as per the agreement for the not-to-exceed amount <br />of$15,000, which includes a small contingency. <br /> <br />In addition, we request a transfer of funds for this amount from General Fund Contingency <br />account 10-519-5990 to Finance Professional Services account 10-513-5315. <br /> <br />BACKGROUND: <br />Thanks to the outstanding performance of the Finance Department over the past 10 years, the <br />City of Sunny Isles Beach has received a 'clean' audit opinion from its auditors. The only <br />exception to that has been an accounting change required several years ago that required local <br />governments to establish and maintain a complete inventory of all fixed assets, including <br />infrastructure such as land, land improvements, rights-of-way, vehicles, equipment, drainage <br />systems, lighting systems, signage, streets & roads, utility lines, etc. <br /> <br />This requirements were issued by the Government Accounting Standards Board (GAS B) and <br />took effect for Sunny Isles Beach for the fiscal year beginning October 1, 2002. GASB is part of <br />the Financial Accounting Foundation, a not-for-profit organization that establishes accounting <br />rules and an independent organization. In June, 1999, GASB issued Statement 34, the most <br />significant change in the history of government financial reporting. Statement 34 covers the <br />basic financial statements, note disclosures, and the Management Discussion and Analysis (MD <br />& a). Local governments need to report capital assets with consideration of deprecation, <br />