City of Miami - Office of the Independent Auditor General BAYSHORE LANDING LEASE (due diligence) AUDIT: 15-015 Audit Period: 10/1/2013 - 5/20/2015 Binder 1 of 1City of Miam| - Office of the Independent Auditor Sener Aust: BAYSHORE LANDING LEASE MK 727 /1S- (auediigenc) A: SNS Pod 10/2019 5/0/20 4s 2/4) 15 ts ‘To: Audit File Re: Audit # 15-015 Bayshore Landing Lease (Due Diligence) Office of Independent Auditor General (OIAG) performed Audit # 15-015 Bayshore Landing (BL) Lease — Due Diligence for the period October 1, 2013 through May 20,2015. The audit was performed because BL entered into an agreement to transfer its rights under its Lease Agreement with the City of Miami to another party. Pycsvant te 4Ne r15kS iwelv@&, the OIAG to provide reasonable assurance that there were no additional rental payments due to the City during the period October 1, 2014 through the transfer losing date of May 20, 2015. This audit commenced soon after we completed Audit #t 15-004 BL lease for the period October 1, 2011 through September 30, 2013. The documents, forms and checklists that are listed below in Binder 1 of Audit # 15-004 apply to this audit # 15-015. ausipten A=] #5 BS nore Fed ke Auditor Assignment Form ~~ | Statement of Independence _f) <2 Audit Engagementletter P-3 ta P- uy Entrance Conference O-@ 4c P=1) Audit Orientation Form PS & > i Preliminary Survey Pp}. P-LS Internal Control Evaluation/Risk Assessment. P- 154 P-l& Audit Planning Meeting PS] | f Audit Briefing Meeting P SE: m \ Exit Conference CO sene KP SENG Planning Checklist p.¢ ALGA Checklist Cw t hoe raorcreats Corea i din (ARI) Final Review Checklist P -1dCity of Miami Ofc of independent Axditr General mie 9] fis a ; 45 Ff '$ Auli Period: A320 City of Miami Toone Fou cP. c an “elophone (305) 416.2046 INDEPENDENT AUDITOR GENERAL E-Mal: gubagimiamgov.com AUmst4B2015 34. DIAG Notes There move vefevencis frocr work pa pers Honorable Members of the City Commission for Pudi t tH 1S 00h (14.02 ity of Miami Bisape lieabt tae 3500 Pan American Drive BSC Bice ts Pires an Coconut Grove, FL 33133-5504 Thea Re: Audit of Bayshore Landing, LLC. for the Period October 1, 2013 through May 20, 2015 Audit No. 15-015 bk Rup ev Executive Summary ads Hn We have completed an audit of records and selected financial transactions of Bayshore Landing, LLC (BL), primarily for the period October 1, 2013 through September 30, 2014. The audit was performed because BL entered into an agreement to transfer its rights under its Lease Agreement (Lease) with the City of Miami (City) to another party. Hence, City management engaged the Office of the Independent Auditor General (OIAG) to provide reasonable assurance that there were no additional rental payments due fo the City during the period October 1, 2014 through the transfer closing date of May 20, 2015. In accordance with provisions of the Lease, BL’'s percentage rental payments to the City during FY 2015 are based on BL’s Gross Recelpts/Revenues for FY 2014. Therefore, our audit procedures included an examination of BL’s reported FY 2014 Gross Receipts/Revenues totaling $9.6 million, which were the basis of BL’s percentage rent payments totaling $639,178 that were made to the City during FY 20165. Lasgo (lo. Se SéolK Overal/e have concluded that a8 a result of differences in calculations of Gross Receipts, $38,285 in additional rent is due to the City for FY 2016 (Sce Schedule 2 on page 6) However, since BL closed on the transfer of ils leasehold interests on May 20, 2015, BL's prorated portion of this amount is $22,461 while $12,794 is due from the new lessee for the remainder of FY 2015, or T~I«. through September 30, 2015. Te We pian to audit certain transactions for periods prior to October 1, 2011 due to BL’s differences in calculations of Gross Receipts and incorrect rent payments due to the City noted in this report OFFICE OF INDEPENDENT AUDITOR GENERALi44¢ W. 2" AVENUE, 7 FLOORMIAMI, FLORIDA 33130-910 AR-1