HomeMy WebLinkAbout2023-09-030 Dania Beach Police & Fire Audit
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
YEAR ENDED SEPTEMBER 30, 2023
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR’S REPORT 1-4
MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary Information) 5-8
FINANCIAL STATEMENTS
Statement of Fiduciary Net Position 9
Statement of Changes in Fiduciary Net Position 10
Notes to Financial Statements 11-23
SUPPLEMENTARY INFORMATION
Schedule of Administrative Expenses 25
REQUIRED SUPPLEMENTARY INFORMATION
Schedules of Contributions from Employer and Other Contributors 27
Schedule of Investment Returns 28
Schedules of Changes in the Employer’s Net Pension Liability (Asset) and Related Ratios 29-30
COMPLIANCE REPORT
Independent Auditor’s Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards 32-33
PALM BEACH
561.737.5568
951 Yamato Road. | Suite 210
Boca Raton, Florida | 33431
MIAMI-DADE
305.670.3370
9300 S. Dadeland Blvd. | Suite 600
Miami, Florida | 33156
BROWARD
954.485.5788
1625 N. Commerce Pkwy | Suite 315
Weston, Florida | 33326
INDEPENDENT AUDITOR’S REPORT
To the Board of Trustees of the
City of Dania Beach Police and Firefighters Retirement System
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the City of Dania Beach Police and Firefighters
Retirement System, which comprise the statement of fiduciary net position as of September 30, 2023, and the
related statement of changes in fiduciary net position for the year then ended, and the related notes to the financial
statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the fiduciary net
position of the City of Dania Beach Police and Firefighters Retirement System as of September 30, 2023, and the
changes in its fiduciary net position for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City of Dania Beach Police and Firefighters Retirement System and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City of Dania Beach Police and Firefighters
Retirement System’s ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
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PALM BEACH
561.737.5568
951 Yamato Road. | Suite 210
Boca Raton, Florida | 33431
MIAMI-DADE
305.670.3370
9300 S. Dadeland Blvd. | Suite 600
Miami, Florida | 33156
BROWARD
954.485.5788
1625 N. Commerce Pkwy | Suite 315
Weston, Florida | 33326
INDEPENDENT AUDITOR’S REPORT (Continued)
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards
will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City of Dania Beach Police and Firefighters Retirement System’s internal control. Accordingly, no such
opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City of Dania Beach Police and Firefighters Retirement System’s ability to
continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we
identified during the audit.
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PALM BEACH
561.737.5568
951 Yamato Road. | Suite 210
Boca Raton, Florida | 33431
MIAMI-DADE
305.670.3370
9300 S. Dadeland Blvd. | Suite 600
Miami, Florida | 33156
BROWARD
954.485.5788
1625 N. Commerce Pkwy | Suite 315
Weston, Florida | 33326
INDEPENDENT AUDITOR’S REPORT (Continued)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis on pages 5-8 and the schedules of contributions from employers and other contributors, schedule of
investment returns and schedules of changes in the employer’s net pension liability (asset) and related ratios on
pages 27-30 be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise
the City of Dania Beach Police and Firefighters Retirement System’s basic financial statements. The accompanying
schedule of administrative expenses is presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Prior Year Comparative Information
We have previously audited the City of Dania Beach Police and Firefighters Retirement System’s 2022 financial
statements, and our report dated March 20, 2023, expressed an unmodified opinion on those financial statements.
In our opinion, the summarized comparative information presented herein as of and for the year ended September
30, 2022, is consistent, in all material respects, with the audited financial statements from which it has been derived.
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PALM BEACH
561.737.5568
951 Yamato Road. | Suite 210
Boca Raton, Florida | 33431
MIAMI-DADE
305.670.3370
9300 S. Dadeland Blvd. | Suite 600
Miami, Florida | 33156
BROWARD
954.485.5788
1625 N. Commerce Pkwy | Suite 315
Weston, Florida | 33326
INDEPENDENT AUDITOR’S REPORT (Continued)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 22, 2024, on our
consideration of the City of Dania Beach Police and Firefighters Retirement System’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City of Dania Beach Police and Firefighters Retirement System’s internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City of Dania Beach Police and Firefighters Retirement System’s internal
control over financial reporting and compliance.
Weston, Florida
January 22, 2024
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
MANAGEMENT’S DISCUSSION AND ANALYSIS
-5-
This section of the annual financial report presents Management’s Discussion and Analysis (MD&A) of the City of
Dania Beach Police and Firefighters Retirement System’s (the Plan) financial performance. This analysis provides
an overview of the financial activities and funding conditions for fiscal year ended September 30, 2023. Please read
it in conjunction with the Plan financial statements, which immediately follow.
General Overview of the Plan
The Plan was first established on March 1, 1977 and later amended to provide retirement, disability and death
benefits for all full-time firefighters of the City of Dania Beach, Florida (the City), and those police officers who
elected to remain in the Plan prior to the transfer of the Police Department to the Broward Sheriff’s Office. It is
defined in Chapter 18 of the Code of Ordinances of the C ity, which is amended from time to time. The Plan is also
governed by certain provisions of Part VII, Chapter 112, Chapter 175 and Chapter 185 of the Florida Statutes. There
is a board of trustees (the Board) in whom the general administration, management and responsibility for the proper
operation of the system is vested.
Overview of the Financial Statements
The financial section of this annual report consists of five parts: MD&A, the basic financial statements, notes to the
financial statements, supplementary information and required supplementary information.
The financial statements provide both long-term and short-term information about the Plan’s overall financial status.
The financial statements also include notes that explain some of the information in the financial statements and
provide more detailed data. The statements are followed by a section of other and required supplementary
information that further explains and supports the information in the financial statements.
The Plan’s financial statements are prepared in conformity with accounting principles generally accepted in the
United States of America (GAAP). Under GAAP, revenues are recognized in the period in which they are earned,
expenses are recognized in the period in which they are incurred and appreciation (depreciation) of assets is
recognized in the statement of changes in fiduciary net position. All assets and liabilities associated with the
operation of the Plan are included in the statement of fiduciary net position.
The statements of fiduciary net position reports fiduciary net position and how it has changed. A net asset is the
difference between the asset and any related liabilities. It is one measurement of the financial health or current
position of the Plan.
Financial Highlights
The Plan’s net results from operations for fiscal year 2023 reflected the following financial activities:
Total fiduciary net position was $74,940,729, which was 0.2% greater than the 2022 total fiduciary net position,
with the increase due primarily to favorable market conditions.
Total contributions were $1,810,172, which was 19% lower than the 2022 contributions, with the decrease due
primarily to the Plan’s actuary determining that a lower amount was needed to be contributed from the City in
order to properly fund the Plan and decrease in buyback contributions.
Total interest and dividend earnings were $1,736,045, which was 0.5% greater than the 2022 earnings.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Continued)
-6-
Financial Highlights (Continued)
Net investment income was $4,856,927, which was 148% greater than the 2022 loss with the increase due
primarily to favorable market conditions.
Benefits paid were $6,344,258, which was 2% greater than 2022 benefits paid with the increase due primarily
to current year new retirees.
Statement of Fiduciary Net Position
The following condensed comparative statement of fiduciary net position is a snapshot of account balances at the
fiscal year end of the Plan. It reports the assets available for future payments to retirees and any current liabilities
that are owed as of the financial statement date. The resulting net asset value, or assets minus liabilities, represents
the value of assets held in trust for pension benefits.
The Plan continues to be evaluated for actuarial soundness by the actuary of the Plan. It should be noted that
retirement system funding is based on a long-term perspective and that temporary fluctuations in the market are to
be expected.
Fiduciary net position at September 30, 2023 was $74,940,729, a 0.2% increase from fiduciary net position at
September 30, 2022.
Total investments at September 30, 2023 were $73,678,300, a 0.3% increase from the investments at September
30, 2022.
The table below presents condensed comparative statements of fiduciary net position as of September 30:
2023 2022 % Change
Cash $ 7,172 $ 12,511 (43%)
Receivables 1,295,094 1,431,035 (9%)
Investments, at fair value 73,678,300 73,457,070 0.3%
Total assets 74,980,566 74,900,616 0.1%
Total liabilities 39,837 82,598 (52%)
Net position restricted for pensions $ 74,940,729 $ 74,818,018 0.2%
Statement of Changes in Fiduciary Net Position
The statement of changes in fiduciary net position presents the effect of pension plan transactions that occurred
during the fiscal year. On the statement, additions to the Plan minus deductions from the Plan equal net increase or
decrease in fiduciary net position.
The funding objective is to meet long-term obligations and fund all pension benefits.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Continued)
-7-
Statement of Changes in Fiduciary Net Position (Continued)
Revenues (additions to the fiduciary net position) for the Plan were $6,669,117, which was made up of total
contributions of $1,810,172, plus net investment income of $4,856,927 and other income of $2,018.
Expenses (deductions from the fiduciary net position) increased from $6,426,843 during 2022 to $6,546,406
during 2023.
The table below presents a condensed comparative of the changes in fiduciary net position for the years ended
September 30:
2023 2022 % Change
Total contributions $ 1,810,172 $ 2,224,557 (19%)
Net investment income (loss) 4,856,927 (10,153,811) 148%
Other income 2,018 80 2423%
Total additions 6,669,117 (7,929,174) 184%
Total deductions 6,546,406 6,426,843 2%
Net change 122,711 (14,356,017) 101%
Net position restricted for pensions - beginning 74,818,018 89,174,035 (16%)
Net position restricted for pensions - ending $ 74,940,729 $ 74,818,018 0.2%
Asset Allocation
The table below indicates the Plan investment policy limitations and actual asset allocations as of September 30,
2023:
Type of Investment Investment policy Actual Allocation
Large cap equity 15%-45% 25%
Mid cap equity 7%-13% 10%
Small cap equity 7%-13% 8%
Developed markets equity 0%-18% 10%
Emerging markets equity 0%-7% 4%
Real estate 0%-20% 20%
Fixed income 15%-30% 20%
Cash and cash equivalents minimum 3%
The investment guidelines provide for the appropriate diversification of the portfolio. Investments have been
diversified to the extent practicable to control the risk of loss resulting from over-concentration of a specific
maturity, issuer, instrument, dealer or bank through which financial instruments are bought and sold.
The Board recognizes that some risk must be assumed to achieve the Plan’s long-term investment objectives. In
establishing the risk tolerances, the Plan’s ability to withstand short and intermediate term variability has been
considered. However, the Plan’s financial condition enables the Board to adopt long-term investment perspective.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Continued)
-8-
Investment Activities
Investment income is vital to the Plan for current and future financial stability. Therefore, the Board has a fiduciary
responsibility to act prudently when making Plan investment decisions. To assist the Board in this area, the Board
retains investment managers who supervise and direct the investment of the assets. The Board also retains an
investment monitor to evaluate and report on a quarterly basis compliance by the investment managers with the
investment policy of the Board and investment performance of the Plan. The investment policy statement was last
amended during November 2017.
The Board and its investment consultant review portfolio performance in compliance with the investment policy
statement quarterly. Performance is evaluated both individually by money manager style and collectively by
investment type and for the aggregate portfolio.
Financial Analysis Summary
The investment activities, for the fiscal year ended September 30, 2023, are a function of the underlying market,
money managers’ performance and the investment policy’s asset allocation model. The Plan has consistently
implemented a high quality, conservative approach.
Contacting the Plan’s Financial Management
This financial analysis is designed to provide the Board of Trustees, Plan participants and the marketplace credit
analysts with an overview of the Plan’s finances and the prudent exercise of the Board’s oversight. If you have any
questions regarding this report or you need additional financial information, please contact the administrator of the
City of Dania Beach Police and Firefighters Retirement System: Attn: Cathy David, Administrator, 111 SW 1st
Street, Dania Beach, FL 33004.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2022)
The accompanying notes are an integral part of these financial statements.
-9-
2023 2022
CASH 7,172$ 12,511$
RECEIVABLES:
Accounts receivable - sale of investments 42,411 -
State contributions 696,022 477,476
Accrued investment income 140,569 113,779
Notes receivable from participants 416,092 839,780
TOTAL RECEIVABLES 1,295,094 1,431,035
INVESTMENTS, AT FAIR VALUE:
Equity securities 37,743,392 39,862,726
Real estate funds 14,677,501 17,172,381
Government securities 11,573,125 8,302,787
Commingled trust fund 3,807,352 3,173,632
Money market funds 2,523,861 1,369,104
Corporate bonds 2,980,451 3,339,058
Self-directed DROP accounts 372,618 237,382
TOTAL INVESTMENTS, AT FAIR VALUE 73,678,300 73,457,070
TOTAL ASSETS 74,980,566 74,900,616
ACCOUNTS PAYABLE 39,837 54,520
ACCOUNTS PAYABLE - PURCHASE OF INVESTMENTS - 28,078
TOTAL LIABILITIES 39,837 82,598
NET POSITION RESTRICTED FOR DEFINED BENEFITS 73,017,545 73,204,030
NET POSITION RESTRICTED FOR DROP BENEFITS 1,923,184 1,613,988
TOTAL NET POSITION RESTRICTED FOR PENSIONS 74,940,729$ 74,818,018$
LIABILITIES
NET POSITION RESTRICTED FOR PENSIONS
ASSETS
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2022)
The accompanying notes are an integral part of these financial statements.
-10-
2023 2022
ADDITIONS:
Contributions:
Employer 611,910$ 744,471$
Buybacks 298,103 739,284
State Chapters 175 and 185 696,022 477,476
Employee 204,137 263,326
Total contributions 1,810,172 2,224,557
Investment income (loss):
Net appreciation (depreciation) in fair value of investments 3,461,455 (11,497,520)
Interest and dividend income 1,736,045 1,728,062
Total investment income (loss) 5,197,500 (9,769,458)
Less: investment expenses 340,573 384,353
Net investment income (loss) 4,856,927 (10,153,811)
Other income 2,018 80
TOTAL ADDITIONS 6,669,117 (7,929,174)
DEDUCTIONS:
Service retirement benefits 4,097,790 3,390,292
DROP benefits 1,384,508 2,116,555
Disability retirement benefits 421,406 353,751
Insurance subsidy - police 235,764 224,018
Beneficiary payment benefits 160,852 115,061
Insurance subsidy - fire 43,938 43,130
Administrative expenses 202,148 184,036
TOTAL DEDUCTIONS 6,546,406 6,426,843
NET CHANGE IN NET POSITION
RESTRICTED FOR PENSIONS 122,711 (14,356,017)
NET POSITION RESTRICTED FOR
PENSIONS - BEGINNING 74,818,018 89,174,035
NET POSITION RESTRICTED FOR
PENSIONS - ENDING 74,940,729$ 74,818,018$
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
-11-
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investment Valuation and Income Recognition
Investments are reported at fair value (see Note 3). Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between market participants (see Note 4
for discussion of fair value measurements).
Purchase and sales of securities are recorded on a trade-date basis. Interest income is recorded on the
accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation (depreciation) includes
the Plan’s gains and losses on investments bought and sold as well as held during the year.
Basis of Accounting and Use of Estimates
The accompanying financial statements have been prepared using the accrual basis of accounting. The
preparation of financial statements in accordance with accounting principles generally accepted in the
United States of America (GAAP) requires management to make estimates and assumptions that affect
the reported amounts of assets, liabilities, benefit obligations and changes therein, and disclosure of
contingent assets and liabilities. Actual results could differ from those estimates.
Concentration of Credit Risk
Financial instruments which potentially expose the Plan to concentration of credit risk, as defined by
GAAP, consist primarily of cash, contribution receivables and related income.
The Plan maintains its cash deposits at a financial institution which, from time to time, may exceed
federally insured limits. The exposure of the Plan from these transactions is solely dependent upon the
daily account balance and the financial strength of the respective institution. The Plan manages this risk
by maintaining its deposit accounts at a high-quality financial institution. As of September 30, 2023, the
Plan had no deposits in excess of federally insured limits.
The Plan’s investments consist of common stocks, government securities, corporate bonds, real estate
funds, mutual funds, commingled trust fund and money market funds, which inherent in the fair market
value determination, include the risk factor of credit worthiness for each individual security.
Comparative Information
The financial statements include certain prior-year comparative information. Such summarized
information does not include sufficient detail in the notes to the financial statements to constitute a
presentation in conformity with accounting principles generally accepted in the United States of America.
Accordingly, such information should be read in conjunction with the Plan’s financial statements for the
year ended September 30, 2022, from which the information was derived. Certain reclassification has
been made to the prior year financial statement in order for them to be in conformity with the current year
presentation.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-12-
NOTE 2. DESCRIPTION OF THE PLAN
The following description of the City of Dania Beach Police and Firefighters Retirement System (the Plan)
provides only general information. Participants should refer to the Plan document and City ordinance 18-
40, as amended, for more detailed and comprehensive information.
General
The Plan is a single-employer defined benefit retirement plan covering all eligible firefighters and certain
police officers that were formerly employees of the City.
Management of the Plan is vested in the Board, which consists of nine (9) persons as follows: Four (4)
legal residents of the city appointed by the city commission; two (2) active firefighters, or firefighters who
are in the Deferred Retirement Option Plan (DROP), elected by a majority of the firefighters who are
members of the system, or a retired member when active firefighter membership falls below ten (10),
elected by a majority of the firefighters, active or retired who are members of the system, as hereinafter
provided; two (2) police officers, or police officers who are in the DROP, elected by a majority of the
police officers who are members of the system or retired members when active police officer membership
falls below ten (10), elected by a majority of the police officers, active or retired who are members of the
system and a ninth person chosen by a majority of the previous eight (8) members of the board of trustees.
Plan Membership
At September 30, 2023, Plan membership consisted of the following:
Retirees and beneficiaries 65
Fully vested, partially vested and non-vested
active employees covered by the Plan 17
82
Eligibility
Eligible for the Plan are the firefighters of the City and certain police officers that were formerly employed
by the City but are now employed by the Broward County Sheriff’s Office. As of October 1, 1988, the
police officers of the City became employees of the Broward County Sheriff’s Office pursuant to a service
agreement dated August 30, 1988 between the City and the Sheriff of Broward County. As of January 29,
2011, the firefighters of the City also became employees of the Broward County Sheriff’s Office. The
Plan became closed to new participants at that time.
Benefits
Normal Retirement Benefit
Normal retirement – Police officers who have attained fifty-five years of age and completed ten years
of continuous service and firefighters who have attained age 55 and completed 8 years of continuous
service may retire with normal retirement benefits. Either firefighters or police officers that have
completed twenty-five years of continuous service, regardless of age, may retire with normal
retirement benefits.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-13-
NOTE 2. DESCRIPTION OF THE PLAN (Continued)
Normal Retirement Benefit (Continued)
The monthly retirement benefit for firefighter members retiring before October 1, 1989, and for police
officers who retire before October 1, 1991, shall equal 2.5% of average monthly earnings for each of
the first thirty years of continuous service and 2% of average monthly earnings for each year of
continuous service in excess of thirty-seven and one-half years, subject to a maximum of 100% of
average monthly earnings. Average monthly earnings is defined as one twenty-fourth of the arithmetic
average of earnings for the highest consecutive twenty-four month period preceding the member’s date
of termination.
The monthly retirement benefit for firefighter members retiring after October 1, 1989, and for police
officers who retire after October 1, 1991, shall equal 3% of average monthly earnings for each of the
first twenty-five years of continuous service and 2% of average monthly earnings for each year of
continuous service in excess of thirty-seven and one-half years, subject to a maximum of 100% of
average monthly earnings. The monthly retirement benefit for firefighter members retiring on or after
January 1, 1999, shall equal 3% of average monthly earnings for each of the first fifteen years of
continuous service and 4% of average monthly earnings for each of the next ten years of continuous
service and 2% of average monthly earnings for each year of continuous service in excess of thirty-
seven and one-half years, subject to a maximum of 100% of average monthly earnings.
Early Retirement Benefit
Early retirement – Early retirement date shall be when a member completes twenty years of continuous
service or both attains fifty years of age and completes eight years of continuous service. A member
retiring on or after his early retirement date but before his normal retirement date shall receive their
normal retirement benefits actuarially reduced to take into account the member’s younger age and the
earlier commencement of retirement income payments, but not by more than 3% for each year the
retiree is younger than the normal retirement age.
Disability Retirement
Any member who receives a service-connected injury, disease or disability, which injury, disease or
disability permanently incapacitates the member, physically or mentally from the member’s regular
and continuous duties as a firefighter or police officer shall receive a monthly disability benefit equal
to the greater of the member’s accrued retirement benefit or 68% of the member’s average monthly
earnings in effect as of the date of disability for a disabled firefighter and the greater of the member’s
accrued retirement benefit or 60% of the member’s average monthly earnings in effect as of the date
of disability for a disabled police officer.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-14-
NOTE 2. DESCRIPTION OF THE PLAN (Continued)
Disability Retirement (Continued)
The disability shall be paid until recovery from disability or if the member does not recover, death.
Any member with one year of continuous service who receives a non-service connected injury, disease
or disability, and which injury, disease or disability permanently incapacitates him physically or
mentally from gainful employment shall receive in equal monthly installments a benefit of not less
than the members accrued retirement benefit or 25% of their average monthly earnings as follows:
With less than 2 years 40%
With less than 3 years 45%
With less than 4 years 50%
With less than 5 years 55%
With 5 or more years 60%
These non-service incurred benefits are payable only until recovery as determined by the board or ten
years certain and death thereafter for firefighter members or death for police officers.
Pre-Retirement Death
A death benefit of the benefits otherwise payable at early or normal retirement but not less than 40%
of average monthly earnings is payable to the member’s designated beneficiary if a member dies in
the performance of services. In addition, a benefit of 7.5% of average monthly earnings is paid to each
of the member’s dependent children. The total death benefits to be paid to designated beneficiary and
children shall not exceed 75% of average monthly earnings. For members who die while not on active
duty, the Plan provides a benefit otherwise payable at early or normal retirement but not less than 35%
of average monthly earnings and 7.5% for the designated beneficiary and dependent children,
respectively. The total non-service-related death benefits for designated beneficiary and children shall
not exceed 50% of average monthly earnings.
Deferred Retirement Option Plan (DROP)
A member may enter in the DROP Plan after twenty-five but less than 30 years of credited service.
The maximum duration of participation in the DROP shall be limited to seven years. Election into the
DROP Plan is voluntary; however, the election is irrevocable once DROP payments begin. Members
will cease to accrue a benefit and will not be eligible for disability or pre-retirement death benefits
once the DROP election is made. Monthly normal retirement benefits that would be paid to members
upon date of retirement are paid into the DROP account while the member is able to continue
employment with the City.
Health insurance subsidy – All firefighter retirees and firefighter survivors receiving benefits shall be
eligible for an annual health insurance subsidy equal to 75% of the prior year’s actuarial gain allocable
to firefighters, firefighter retirees and firefighter survivors remaining after the annual cost of living
adjustments are applied. 75% of any increase in the percentage of covered payroll received by the City
pursuant to section 175.121, Florida Statutes, over the amount received by the City in 1997 shall be
defined as the “available actuarial gain”.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-15-
NOTE 2. DESCRIPTION OF THE PLAN (Continued)
Deferred Retirement Option Plan (DROP) (Continued)
The available actuarial gain for a fiscal year is to be used to subsidize up to one year’s payments for
retiree health insurance due from each firefighter retiree and firefighter survivor who receives benefits
from the system to cover one-third of the premium cost for such insurance or 100% of the cost if
enough funds are made available. Should the available actuarial gain not be fully expended by the
subsidy, then the balance together with any unexpended available actuarial gain from prior years shall
be accrued by the retirement system. DROP participants shall receive credit for any such future
benefits paid while participating in the DROP, but not for the health insurance subsidy.
Funding
Firefighters currently make contributions to the Plan at a rate equal to 24.6% of earnings. Firefighters
hired prior to September 30, 2001 and those hired on or after October 1, 2001 contribute 2% and
6.46%, respectively, of their earnings through payroll deductions. The remaining contributions are
made by the City and State on behalf of the firefighters.
Effective January 29, 2011 and amended September 25, 2013, the City and the Broward County
Sheriff’s Office agreed that for the year ending September 30, 2013 and for all future fiscal years as
long as annual employer pension contributions are required, the Broward County Sheriff’s Office will
contribute $513,354 to both the City Fire Pension and the City General Employee Pension. The
contributed amount of $513,354 will be divided between the City Fire Pension and the City General
Employee Pension by $497,927 and $15,427 respectively. In the event the annual required employer
pension is less than $513,354 in any fiscal year; the Broward County Sheriff’s Office annual required
employer contribution shall be the lesser amount.
The Broward County Sheriff’s Office refunds to the City the amount that the Sheriff’s Office would
have paid to the Florida Retirement System on behalf of those police officers who remained in the
System. For the years ended September 30, 2023 and 2022 no active police officers were participants
in the Plan.
For active participants, the Broward County Sheriff’s Office and City make an annual contribution to
the Plan in a percentage of pensionable wages determined by the actuary by taking into consideration
the amounts contributed by employees and the state of Florida (the State) under State law.
Rate of Return
For the year ended September 30, 2023, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 6.58%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-16-
NOTE 3. INVESTMENTS
The Plan’s policy in regard to the allocation of invested assets is established and may be amended by the
Board. Plan assets are managed on a total return basis with a long-term objective of achieving and
maintaining a fully funded status for the benefits provided through the pension plan. The investment policy
statement was last amended during November 2017. The following was the Board’s adopted asset allocation
policy as of September 30, 2023:
During the year ended September 30, 2023, the Plan’s investments (including gains and losses on
investments bought and sold, as well as held during the year) appreciated in value by $3,461,455 (reported
as net appreciation in fair value of investments in the statements of changes in net fiduciary position) as
follows:
Common stock 1,393,113$
Mutual funds 4,003,634
Commingled trust fund 667,018
Real estate funds (2,696,347)
Corporate & foreign bonds 244,880
Government securities (150,843)
3,461,455$
The term “interest risk” refers to the portfolio’s exposure to fair value losses arising from increasing interest
rates. Interest rate risk disclosures are required for all debt investments, as well as investments in mutual
funds, external investment pools and other pooled investments that do not meet the definition of a 2a7-like
pool.
The remainder of this page intentionally left blank.
Type of Investment Target Allocation
Large cap equity 15%-45%
Mid cap equity 7%-13%
Small cap equity 7%-13%
Developed markets equity 0%-18%
Emerging markets equity 0%-7%
Real estate 0%-20%
Fixed income 15%-30%
Cash and cash equivalents minimum
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-17-
NOTE 3. INVESTMENTS (Continued)
The Plan’s investment policy does not use limits on investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. The Plan’s investments in government
securities and corporate bonds had maturities within the yearly time frames as follows:
Investment Type Fair Value Less than 1 1 to 5 6 to 10 More than 10
U.S. agencies 6,344,398$ 98,899$ 309,470$ 865,340$ 5,070,689$
Corporate bonds 2,980,451 - 843,259 1,298,400 838,792
U.S. treasuries 2,817,704 - 520,080 1,324,137 973,487
Municipal obligations 2,411,023 - 959,478 771,290 680,255
Totals 14,553,576$ 98,899$ 2,632,287$ 4,259,167$ 7,563,223$
The term “credit risk” is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. The Plan’s fixed income portfolio was rated by Moody’s Investors Services as follows:
Rating Fair Value
Aaa 3,618,968$
Aa1 959,302
Aa2 141,642
A 117,295
A1 1,739,958
A2 899,627
BBB 315,309
Unrated 6,761,475
Total 14,553,576$
“Concentration of investment risk” is the risk of losses that may occur from having a large portion of the
Plan’s holding in a particular investment relative to the overall portfolio. GASB Statement 40 and GASB
Statement 67, require disclosure of investments (other than those issued or guaranteed by the U.S.
Government) in any one organization that represent 5% or more of total investments or fiduciary net
position. At September 30, 2023, investment in the following mutual funds represented more than 5% of
the Plan’s net position: Fidelity Mid Cap Index Fund (9.8%), Vanguard Russell 1000 Fund (8.8%) and
Vanguard 500 Index Fund (6.5%). At September 30, 2023, investment in the following real estate fund
represented more than 5% of the Plan’s net position: ARA Core Property Fund (16.5%). “Foreign currency
risk” is the risk that fluctuations in currency exchange rate may affect transactions conducted in currencies
other than U.S. Dollars as well as the carrying value of foreign investments. The Plan’s exposure to foreign
currency risk derives mainly from its investments in international equity funds and foreign bonds.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-18-
NOTE 3. INVESTMENTS (Continued)
The investment policy limits the foreign investments to no more than 25% of the Plan’s investment balance.
As of year-end, the foreign investments were approximately 14% of total investments.
NOTE 4. FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The Plan categorizes its fair value
measurements within the fair value hierarchy as established by generally accepted accounting principles.
The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three
levels based on the extent to which inputs used in measuring fair value are observable in the market as
follows:
Level 1- Inputs to the valuation methodology are based upon quoted prices for identical assets in active
markets.
Level 2 - Inputs to the valuation methodology are based upon observable inputs for the assets either directly
or indirectly, other than those considered Level 1 inputs, which may include quoted prices for identical
assets in markets that are not considered to be active, and quoted prices of similar assets in active or inactive
markets.
Level 3 - Inputs to the valuation methodology are based upon unobservable inputs.
The following is a description of the valuation methodologies used for asset measured at fair value.
Common stock: Valued at the closing price reported on the New York Stock Exchange.
Government securities: Valued using pricing models maximizing the use of observable inputs for similar
securities.
Mutual funds: Valued at the daily closing price as reported by the Plan. Mutual funds held by the Plan
are open-ended mutual funds that are registered with the Securities and Exchange Commission. These
funds are required to publish their daily net asset value (NAV) and to transact at that price. The mutual
funds held by the Plan are deemed to be actively traded.
Corporate bonds: Valued using pricing models maximizing the use of observable inputs for similar
securities. This includes basing the value on yields currently available on comparable securities of
issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds,
the bond is valued under a discounted cash flows approach that maximizes observable inputs, such as
current yield of similar instruments, but includes adjustments for certain risks that may not be
observable, such as credit and liquidity risks or a broker quote, if available.
Real estate funds and commingled trust fund: Valued at the net asset value of shares held by the Plan at
year end.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-19-
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
The following table presents the Plan’s fair value hierarchy for investments at fair value as of September
30, 2023:
a) As required by GAAP, certain investments that are measured at net asset value have not been classified in
the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation
of the fair value hierarchy to the total investment line item in the statement of fiduciary net position.
Quoted
Prices in Significant
Active Other Significant
Markets for Observable Unobservable
Identical Assets Inputs Inputs
Total (Level 1)(Level 2)(Level 3)
Investments by fair value level
Equity securities:
Common stocks 16,062,046$ 16,062,046$ -$ -$
Mutual funds 21,681,346 21,681,346 - -
Total equity securities 37,743,392 37,743,392 - -
Debt securities:
U.S. agency securities 6,344,398 - 6,344,398 -
Corporate bonds 2,980,451 - 2,980,451 -
U.S. treasury securities 2,817,704 - 2,817,704 -
Municipal obligations 2,411,023 - 2,411,023 -
Total debt securities 14,553,576 - 14,553,576 -
Self-directed DROP accounts 372,618 372,618 - -
Total investments by fair value level 52,669,586$ 38,116,010$ 14,553,576$ -$
Investments measured at the net asset value (NAV) (a)
Real estate funds 14,677,501
Commingled trust fund 3,807,352
Total investments measured at the NAV 18,484,853
Money market funds (exempt) 2,523,861
Total investments 73,678,300$
Fair Value Measurements Usin
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-20-
NOTE 4. FAIR VALUE MEASUREMENTS (Continued)
The following table summarizes investments for which fair value is measured using the net asset value per
share practical expedient, including their related unfunded commitments and redemption restrictions.
Investments Measured at the NAV Redemption
Unfunded Frequency (if Redemption
Fair Value Commitments Currently Eligible)Notice Period
Real estate fund (1)12,378,178$ -$ Quarterly 10 days
Real estate fund (2)2,299,323 - Quarterly 10 days
Commingled trust fund (3)3,807,352 - Quarterly 1 business day
Total investments measured at the NAV 18,484,853$ -$
1) Real estate fund: The fund was formed as an open-end real estate fund consisting primarily of real
estate properties in core stable institutional quality offices, retail, industrial and multi-family
residential properties that are substantially leased and have minimal deferred maintenance or
functional obsolescence. The investment is valued at NAV and redemption requests may be made
at any time and are effective at the end of the calendar quarter in which the request is received.
2) Real estate fund: The fund was formed as an open-end real estate investment fund consisting of
real estate property investments solely in the United States in specific product types including but
not limited to multi-family, industrial, retail, office, hotel and other properties. The investment is
valued at NAV and redemption requests may be made at any time and are effective at the end of
the calendar quarter in which the request is received.
3) Commingled trust fund: The fund seeks to apply a systematic and disciplined approach designed
to identify high-quality companies with forward-looking secular EPS growth of at least 10% per
annum over the next three to five years when they are trading at an attractive valuation. The
portfolio will invest in 20 to 30 companies located outside the United States, diversified by industry
and country. The investment is valued at NAV and redemption requests may be made at any time
and are effective on the next business day in which the request is received.
NOTE 5. ACTUARIAL VALUATION
The most recent actuarial valuation was done as of October 1, 2022 and rolled forward to the measurement
date of September 30, 2023. Individual Entry Age Normal was used as the actuarial cost method. The
actuarial value of assets method was used for asset valuation.
The mortality tables used are the same as those used by the Florida Retirement System (FRS) in their July
1, 2021 Actuarial Valuation Report for Special Risk Class members. These tables are based on the Pub-
2010 headcount weighted mortality tables, with mortality improvements projected for healthy lives to all
future years after 2010 using Scale MP-2018. Florida Statutes 112.63(1)(f) mandates, that retirement
systems sponsored by local governments in Florida, employ the same mortality tables used in either of the
two most recently published actuarial valuation reports of FRS.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-21-
NOTE 5. ACTUARIAL VALUATION (Continued)
Principal assumptions used were 5.75% for the investment rate of return, 6.0% for projected salary increases
and 2.25% for inflation.
The actuary further determined that the required City contribution for the year ended September 30, 2023
was $611,910. This amount was contributed in full during the year ended September 30, 2023.
NOTE 6. RISKS AND UNCERTANTIES
The Plan invests in various investment securities. Investment securities are exposed to various risks such
as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities,
it is at least reasonably possible that changes in the values of investment securities will occur in the near
term and that such changes could materially affect the amounts reported in the statement of fiduciary net
position available for benefits.
Plan contributions are made, and the actuarial present value of accumulated plan benefits are reported based
on certain assumptions pertaining to interest rates, inflation rates and employee demographics, all of which
are subject to change. Due to uncertainties inherent in the estimations and assumptions process, it is at least
reasonably possible that changes in these estimates and assumptions in the near-term would-be material to
the financial statements.
NOTE 7. NET PENSION LIABILITY OF THE PLAN
The components of the net pension liability of the City at September 30, 2023 were as follows:
Total pension liability 90,286,692$
Plan fiduciary net position 74,940,729
Net pension liabilit 15,345,963$
Plan fiduciary net position as a percentage of
the total pension liability 83.00%
The total pension liability, required to be reported under Governmental Accounting Standards, was
determined by an actuarial valuation, as of October 1, 2022 and rolled forward to the measurement date of
September 30, 2023, using certain actuarial assumptions, the most significant of which were 5.75% for the
investment rate of return, 6.00% for projected salary increases and 2.25% for inflation.
The mortality tables used are the same as those used by the FRS in their July 1, 2021 Actuarial Valuation
Report for Special Risk Class members. These tables are based on the Pub-2010 headcount weighted
mortality tables, with mortality improvements projected for healthy lives to all future years after 2010 using
Scale MP-2018.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-22-
NOTE 7. NET PENSION LIABILITY OF THE PLAN (Continued)
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s
target asset allocation as of September 30, 2023 (see the discussion of the pension plan’s investment policy)
are summarized in the following table:
Target Long Term Real
Investment Category Allocation Annualized Return
Large cap 30.0% 8.1%
Mid cap 10.0% 8.4%
Small cap 10.0% 6.8%
Developed markets 11.0% 4.7%
Emerging markets 4.0% 7.1%
Real assets 15.0% 5.9%
Fixed income 20.0% 0.4%
A single discount rate of 5.75% was used to measure the total pension liability. This single discount rate
was based on the expected rate of return on pension plan investments. The projection of cash flows used to
determine this single discount rate assumed that plan member contributions will be made at the current
contribution rate and that employer contributions will be made at rates equal to the difference between the
total actuarially determined contribution rates and the member rate. Based on these assumptions, the
pension plan’s fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments (5.75%) was applied to all periods of projected benefit payments to determine the total pension
liability.
The sensitivity of the net pension liability to changes in the single discount rate, the following presents the
plan’s net pension liability, calculated using a single discount rate of 5.75%, as well as what the plan’s net
pension liability would be if it were calculated using a single discount rate that is 1-percentage-point lower
(4.75%) or 1-percentage-point higher (6.75%):
Current
1% decrease discount rate 1% increase
(4.75%)(5.75%)(6.75%)
Net pension liability 25,275,153$ 15,345,963$ 7,087,087$
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
(Continued)
-23-
NOTE 8. NOTES RECEIVEABLE FROM PARTICIPANTS
During the year ended September 30, 2023, participants had bought back $298,103 worth of time from the
Plan by pledging future DROP payments that they would have been entitled to. During the year ended
September 30, 2023, the participants repaid $758,473 of the current and prior year advances plus $36,683
of interest by foregoing the DROP benefit payments that they were entitled to. The total unpaid balance at
September 30, 2023, was $416,092.
NOTE 9. INCOME TAXES
The Plan is exempt from federal income taxes under the Internal Revenue Code and, accordingly, no
provision for federal income taxes has been made.
On November 12, 2014, the Plan obtained its most recent determination letter in which the Internal Revenue
Service stated that the Plan, as then designed, was in compliance with applicable requirements of Internal
Revenue Code 401(a), and therefore, no provision for federal income taxes has been made.
Accounting principles generally accepted in the United States of America require Plan management to
evaluate tax positions taken by the Plan and recognize a tax liability if the plan has taken an uncertain
position that more likely than not would not be sustained upon examination by a taxing authority. The Plan
is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods
in progress.
NOTE 10. SUBSEQUENT EVENTS
We evaluated subsequent events through January 22, 2024, the date that the financial statements were
available to be issued.
The remainder of this page intentionally left blank.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2023
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
SCHEDULE OF ADMINISTRATIVE EXPENSES
YEAR ENDED SEPTEMBER 30, 2023
(WITH COMPARATIVE TOTALS FOR YEAR ENDED SEPTEMBER 30, 2022)
The accompanying independent auditor’s report should be read with this supplementary schedule.
-25-
2023 2022
ADMINISTRATIVE EXPENSES:
Accounting 9,965$ 12,405$
Actuarial 39,970 39,231
Administrative fees 69,574 57,986
Insurance 16,648 12,807
Legal 33,600 33,600
Meetings and conventions 16,360 6,779
Office 6,369 6,471
Rent 7,306 12,261
Telephone 1,924 1,701
Utilities 432 795
TOTAL ADMINISTRATIVE EXPENSES 202,148$ 184,036$
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2023
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
SCHEDULES OF CONTRIBUTIONS FROM EMPLOYER AND OTHER CONTRIBUTORS
(UNAUDITED)
The accompanying independent auditor’s report should be read with this supplementary schedule.
-27-
2023 2022 2021 2020 2019
Actuarially determined employer contribution 735,965$ 868,526$ 6,361,384$ 6,990,098$ 6,928,856$
Actual employer contribution 803,855 936,416 6,361,38 6,990,098 6,928,856
Annual contribution deficiency (excess)(67,890)$ (67,890)$ -$ -$ -$
Covered-employee payroll *829,825$ 1,070,431$ 1,404,955$ 1,602,329$ 1,676,402$
Actual contributions as a percentage of
covere -emp oyee payro 96.87% 87.48% 452.78% 436.25% 413.32%
2018 2017 2016 2015 2014
Actuarially determined employer contribution 6,920,425$ 6,915,503$ 5,729,245$ 3,967,948$ 2,987,487$
Actual employer contribution 6,920,425 6,915,503 5,729,245 3,967,948 2,987,487
Annual contribution deficiency (excess)-$ -$ -$ -$ -$
Covered-employee payroll *2,012,598$ 2,140,626$ 2,620,63$ 2,970,618$ 3,030,736$
Actual contributions as a percentage of
covered-employee payroll 343.86% 323.06% 218.62% 133.57% 98.57%
* Note: Covered payroll was calculated by dividing the total member contributions for the fiscal year by the total
member contribution rate of 24.6%.
Notes to Schedules of Contributions from Employer and Other Contributors
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation:
Salary increases
Investment rate of return
Mortality
10 years
Level Dollar, Closed
Entry Age Normal
Actuarial Assumptions
The mortality tables used are the same as those used in the July 1, 2021
Pension Actuarial Valuation of the Florida Retirement System (FRS) for
Special Risk members. These tables are based on the Pub-2010 mortality tables
with mortality improvements projected for healthy lives to all future years after
2010 using Scale MP-2018.
5.75%
6.00%
2.25%
5-year smoothed market
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
SCHEDULE OF INVESTMENT RETURNS
(UNAUDITED)
The accompanying independent auditor’s report should be read with this supplementary schedule.
-28-
Annual money-
weighted rate
of return net of
Year Ended investment
September 30 expense
2023 6.58%
2022 (11.66%)
2021 21.32%
2020 7.80%
2019 3.35%
2018 9.45%
2017 12.67%
2016 7.47%
2015 (0.57%)
2014 8.49%
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN THE EMPLOYER’S NET PENSION LIABILITY (ASSET)
AND RELATED RATIOS
(UNAUDITED)
The accompanying independent auditor’s report should be read with this supplementary schedule.
-29-
2023 2022 2021 2020 2019
TOTAL PENSION LIABILITY:
Service cost 477,044$ 565,831$ 606,318$ 679,390$ 724,803$
Interest 5,016,533 4,862,067 4,929,957 4,949,503 4,747,703
Benefit changes - 4,525,764 - (1,967) -
Difference between actual and expected experience 396,051 699,787 252,612 (67,164) 595,694
Assumption changes - 4,155,047 3,835,936 (1,802,248) -
Benefit payments (6,344,258) (6,242,807) (5,111,362) (4,671,185) (4,291,509)
Other 802,180 1,024,815 849,423 917,260 1,448,186
NET CHANGE IN TOTAL PENSION LIABILITY 347,550 9,590,504 5,362,884 3,589 3,224,877
TOTAL PENSION LIABILITY - BEGINNING 89,939,142 80,348,638 74,985,754 74,982,165 71,757,288
TOTAL PENSION LIABILITY - ENDING 90,286,692 89,939,142 80,348,638 74,985,754 74,982,165
PLAN FIDUCIARY NET POSITION:
Contributions - Employer 611,910 744,471 6,169,439 6,798,153 6,736,911
Contributions - State 696,022 477,476 459,093 463,157 429,236
Contributions- Member 204,137 263,326 345,619 394,173 412,395
Net investment income (loss) 4,858,945 (10,153,731) 15,770,010 4,941,406 2,067,568
Benefit payments (6,344,258) (6,242,807) (5,111,362) (4,671,185) (4,291,509)
Administrative expenses (202,148) (184,036) (174,791) (178,901) (181,485)
Other 298,103 739,284 582,275 646,048 1,210,895
NET CHANGE IN PLAN FIDUCIARY NET POSITION 122,711 (14,356,017) 18,040,283 8,392,851 6,384,011
PLAN FIDUCIARY NET POSITION - BEGINNING 74,818,018 89,174,035 71,133,752 62,740,901 56,356,890
PLAN FIDUCIARY NET POSITION - ENDING 74,940,729 74,818,018 89,174,035 71,133,752 62,740,901
NET PENSION (ASSET) LIABILITY - ENDING 15,345,963$ 15,121,124$ (8,825,397)$ 3,852,002$ 12,241,264$
PLAN FIDUCIARY NET POSITION AS A PERCENTAGE
OF TOTAL PENSION LIABILITY 83.00% 83.19% 110.98% 94.86% 83.67%
COVERED EMPLOYEE PAYROLL 829,825$ 1,070,431$ 1,404,955$ 1,602,329$ 1,676,402$
NET PENSION LIABILITY AS A PERCENTAGE
OF COVERED EMPLOYEE PAYROLL 1849.30% 1412.62% -628.16% 240.40% 730.21%
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN THE EMPLOYER’S NET PENSION LIABILITY (ASSET)
AND RELATED RATIOS
(UNAUDITED)
(Continued)
The accompanying independent auditor’s report should be read with this supplementary schedule.
-30-
2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY:
Service cost 839,069$ 891,121$ 1,226,373$ 1,145,724$ 1,067,760$
Interest 4,709,586 4,574,753 4,337,463 4,171,246 3,944,144
Difference between actual and expected experience (922,961) 506,187 1,314,433 392,918 (23,067)
Assumption changes - 1,869,158 (1,436,329) 1,666,373 2,894,544
Benefit payments (4,497,632) (4,299,948) (3,122,665) (3,803,361) (2,922,426)
Other 447,835 1,027,652 1,994,483 435,428 210,585
NET CHANGE IN TOTAL PENSION LIABILITY 575,897 4,568,923 4,313,758 4,008,328 5,171,540
TOTAL PENSION LIABILITY - BEGINNING 71,181,391 66,612,468 62,298,710 58,290,382 53,118,842
TOTAL PENSION LIABILITY - ENDING 71,757,288 71,181,391 66,612,468 62,298,710 58,290,382
PLAN FIDUCIARY NET POSITION:
Contributions - Employer 6,728,480 6,723,558 5,537,300 3,776,003 2,795,542
Contributions - State 395,992 448,880 446,780 441,891 466,381
Contributions- Member 495,099 526,594 644,675 730,772 745,561
Net investment income 4,568,934 5,074,159 2,582,275 (197,718) 2,435,693
Benefit payments (4,497,632) (4,299,948) (3,122,665) (3,803,361) (2,922,426)
Administrative expenses (209,337) (179,172) (160,786) (141,008) (135,697)
Other 185,895 (357,645) 966,824 58,192 173,969
NET CHANGE IN PLAN FIDUCIARY NET POSITION 7,667,431 7,936,426 6,894,403 864,771 3,559,023
PLAN FIDUCIARY NET POSITION - BEGINNING 48,689,459 40,753,033 33,858,630 32,993,859 29,434,836
PLAN FIDUCIARY NET POSITION - ENDING 56,356,890 48,689,459 40,753,033 33,858,630 32,993,859
NET PENSION LIABILITY - ENDING 15,400,398$ 22,491,932$ 25,859,435$ 28,440,080$ 25,296,523$
PLAN FIDUCIARY NET POSITION AS A PERCENTAGE
OF TOTAL PENSION LIABILITY 78.54% 68.40% 61.18% 54.35% 56.60%
COVERED EMPLOYEE PAYROLL 2,012,598$ 2,140,626$ 2,620,630$ 2,970,618$ 3,030,736$
NET PENSION LIABILITY AS A PERCENTAGE
OF COVERED EMPLOYEE PAYROLL 765.20% 1050.72% 986.76% 957.38% 834.67%
.
CITY OF DANIA BEACH
POLICE AND FIREFIGHTERS RETIREMENT SYSTEM
COMPLIANCE REPORT
SEPTEMBER 30, 2023
PALM BEACH
561.737.5568
951 Yamato Road. | Suite 210
Boca Raton, Florida | 33431
MIAMI-DADE
305.670.3370
9300 S. Dadeland Blvd. | Suite 600
Miami, Florida | 33156
BROWARD
954.485.5788
1625 N. Commerce Pkwy | Suite 315
Weston, Florida | 33326
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
To the Board of Trustees of the
City of Dania Beach Police and Firefighters Retirement System
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the financial statements of the City of Dania Beach Police and Firefighters Retirement
System, as of and for the year ended September 30, 2023, and the related notes to the financial statements, which
collectively comprise the City of Dania Beach Police and Firefighters Retirement System‘s basic financial statements,
and have issued our report thereon dated January 22, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Dania Beach Police and
Firefighters Retirement System’s internal control over financial reporting (internal control) as a basis for designing
audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Dania Beach Police
and Firefighters Retirement System’s internal control. Accordingly, we do not express an opinion on the effectiveness
of the City of Dania Beach Police and Firefighters Retirement System’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the Plan’s financial statements will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were
not identified.
PALM BEACH
561.737.5568
951 Yamato Road. | Suite 210
Boca Raton, Florida | 33431
MIAMI-DADE
305.670.3370
9300 S. Dadeland Blvd. | Suite 600
Miami, Florida | 33156
BROWARD
954.485.5788
1625 N. Commerce Pkwy | Suite 315
Weston, Florida | 33326
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS (Continued)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Dania Beach Police and Firefighters Retirement
System’s financial statements are free from material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those provisions was
not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed
no instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the Plan’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the Plan’s internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Weston, Florida
January 22, 2024