1 2 Report on the Financial Performance City of Doral Student Name Masters of Accountancy, ACG6505 Advance Governmental and Fund Accounting Dr. Dahli Gray, CPA, CMA, CGMA, CFE Date Abstract The report gives a brief history of City of Doral, how it incorporated and its current financial performance. The city makes its annual budgets by involving its resident who priorities which projects and programs should be funded based on the projected revenue. Based on the comprehensive financial reports, the corporation continues to register increase in assets; however, during the last two years, it registered a reduction in its liabilities. Such trend is beneficial for the financial stability of the corporation. The City of Doral is one of the city’s that is managed well thanks to its management format that includes manager, the council, and mayor. The city is managed as a corporation after incorporating in 2003. Due to the good management, the city attracted many investors and diversified the investments. The investment in capital assets coupled with good management led to increase in population, business opportunities and revenue. The more the business opportunities the more the city collected property taxes and served many people who paid for the services. The strategy increased its revenue base and increased its net worth. Whereas there are improvements, the analysis of the financial position shows that more controls on the liabilities are needed to reduce liabilities and increase revenue. Keywords: net worth, assets, liabilities Report on the Financial Performance City of Doral Since the incorporation of City of Doral in 2003, population increased and more developments were carried out that led to increase in cash flow and revenue. More developments and investments led to increase in the city’s revenue collections. For example, in 2018 the city raised $ 12,081 billion from revenue and other charges. It is in cognizance of the city’s development and investment that the paper focuses on analyzing the trend of the value of assets, liabilities and the general net worth of the organization. Specifically, the analysis will be done by calculating relevant financial ratios appropriate in making informed judgment about the issues identified. Furthermore, the paper will document the analysis results in simple and clear terms understandable to external stakeholders of the corporation. Importantly, the report highlights the conclusions derived from the analysis and highlights appropriate recommendations based on the conclusions. The final part of the paper is the summary of the report. History The Founders The City of Doral started as a real estate site after Doris and Alfred Kaskel bought land in the state of Florida in 1950s. The two were real estate developers who bought land for purposes of developing it, they bought 2400 acres of land. The land was swampy; it was located between NW 36 and 74 streets and from NW 79 to NW 117 avenues. They b ...

1. 1
2
Report on the Financial Performance City of Doral
Student Name
Masters of Accountancy,
ACG6505 Advance Governmental and Fund Accounting
Dr. Dahli Gray, CPA, CMA, CGMA, CFE
Date
Abstract
The report gives a brief history of City of Doral, how it
incorporated and its current financial performance. The city
makes its annual budgets by involving its resident who
priorities which projects and programs should be funded based
on the projected revenue. Based on the comprehensive financial
reports, the corporation continues to register increase in assets;
however, during the last two years, it registered a reduction in
its liabilities. Such trend is beneficial for the financial stability
of the corporation. The City of Doral is one of the city’s that is
managed well thanks to its management format that includes
manager, the council, and mayor. The city is managed as a
corporation after incorporating in 2003. Due to the good
management, the city attracted many investors and diversified
the investments. The investment in capital assets coupled with
good management led to increase in population, business
opportunities and revenue. The more the business opportunities

2. the more the city collected property taxes and served many
people who paid for the services. The strategy increased its
revenue base and increased its net worth. Whereas there are
improvements, the analysis of the financial position shows that
more controls on the liabilities are needed to reduce liabilities
and increase revenue.
Keywords: net worth, assets, liabilities
Report on the Financial Performance City of Doral
Since the incorporation of City of Doral in 2003, population
increased and more developments were carried out that led to
increase in cash flow and revenue. More developments and
investments led to increase in the city’s revenue collections. For
example, in 2018 the city raised $ 12,081 billion from revenue
and other charges. It is in cognizance of the city’s development
and investment that the paper focuses on analyzing the trend of
the value of assets, liabilities and the general net worth of the
organization. Specifically, the analysis will be done by
calculating relevant financial ratios appropriate in making
informed judgment about the issues identified. Furthermore, the
paper will document the analysis results in simple and clear
terms understandable to external stakeholders of the
corporation. Importantly, the report highlights the conclusions
derived from the analysis and highlights appropriate
recommendations based on the conclusions. The final part of the
paper is the summary of the report.
History
The Founders
The City of Doral started as a real estate site after Doris and
Alfred Kaskel bought land in the state of Florida in 1950s. The
two were real estate developers who bought land for purposes of
developing it, they bought 2400 acres of land. The land was
swampy; it was located between NW 36 and 74 streets and from

3. NW 79 to NW 117 avenues. They bought the land for $ 49,000
with the aim of building a hotel and a golf course. The Kaskel’s
constructed the Carillon Hotel and Doral Beach Hotel on Miami
Beach. On the bought land, they constructed a country club and
established a hotel, which they named as Doral, which is a
combination of their names. So guests at the Miami Beach
would be transported to the country club, which featured blue,
red and par 3 golf courses. Among the events that were hosted
at the country club was Florida’s major PGA event, which was
the first Doral Open Invitational (City of Doral, 2020).
Subsequently, guests frequented the hotels and the country club.
Between 1980 and 2000, Doral’s grandson called Bill built
Doral estates and engaged in a joint venture to build the Doral
park. Because of building the estate, younger families flooded
the area for shopping sprees because the area had not parks,
stores, or schools. The tenants and buyers of the Doral estate
came together as a community; whereas there were no traffic
problems the rapid construction of the estate and the attraction
of many buyers and tenants due to the low cost led the county to
impose a building moratorium (City of Doral, 2020). The high
population and lack of amenities led to increase in the cost of
services. The community in the area established a West Dade
Federation of Homeowner Associations in 1989 to safeguard the
welfare of the community. As a result of the federations’ effort,
there was establishment of police station, lighting, landscaping
and roads in the area.
Incorporation
After years of development, and the resultant strain on the
resource, the management formalized the operations in the city.
There was need to incorporate the city so that revenues could
collected and necessary services provided. Incorporation led the
area to be managed in a professional way. The city was
incorporated in 2003; the incorporation attracted more

4. investments that included the buying of hotels and the Doral
Country club. For instance, Donald Trump bought the Doral
county club and hotel in 2012 for $ 150 million. Due to change
in ownership, the name of the club changed to Trump National
Doral Gold Club. The reputation of the club for its golf courses
continued and expanded internationally; for example, the Blue
Monster continued to host PGA Tour Tournament until 2016.
Apparently, the City of Doral attracts many companies,
families, businesses and retires (City of Doral, 2020). Between
2010 and 2016, the population of City of Dorol increased by
26.1% by 12,000 people to 64,000 residents (Madan, 2017). The
city is now managed under the Mayor-Council-Manager format.
The format allows effective operations and reduces political
interferences in some core in some functions that would
otherwise affect decision-making. Each party in the
management has a specific responsibility to carry out.
The governing council is mandated to formulate legislations and
policy, the council has the mayor and the council members. The
council is mandated to adopt resolutions and ordinances; it also
adopts the annual budget in addition to appointing the city
Attorney, the City Manager and the City Clerk. The city
manager engages in implementing directives and policies of the
council. The manager also appoints the departmental head as
part of overseeing the operations of the government.
Issues Analyzed
After the incorporation of the city, the management kept the
financial records in accordance with the government accounting
standards. It kept records of assets, liabilities, expenses, and the
net worth of the city. The city makes the annual budget, which
acts as the basis of financial control and planning. It is based on
the financial information kept that the report focuses on
analyzing the financial status of the incorporation by focusing
on its assets, its liabilities and its net worth. The table below is
a summary of the four-year status of the three issues

5. 2015
2016
2017
2018
Total assets
315,068,814
337,519,822
346,143,957
356,376,077
Total liabilities
41,585,954
57,775,513
57,672,302
55,528,269
Net Position
276,044,345
291,877,613
300,590,734
311,036,836
Assets
Asset is any resource of value to the organization, government,
or individual that means it can be converted into cash within a
short notice such as short-term assets or in the long -term such
as long-term assets (Folger, 2020). In government accounting,
assets include public land including parks and infrastructure
such as the water and sewerage system, and charges from
service offered and taxes. There are also business type activities
that include investment earnings and moneys raised from
charges (City of Doral, 2018). The city’s assets include capital
assets such as improvements in public works, upgrades in
information technology, construction and improvements in

6. parks and levies from vehicles.
Liabilities
A liability is what an organization, government or individual
owns to another entity. Examples of liability in government
accounting include loans, accrued interests, accounts payable,
and escrow deposits among others (Hayes, 2019).
Net Position
The net position is the difference between the assets and the
liabilities in the organization. The net worth shows that
financial stability of the entity; whenever the assets are higher
than the liabilities, the net worth is higher. The ideal situation
in organization is to ensure the entity is solvent such that the
liabilities are lower than the value of the assets.
Analysis Methods
The method used for analyzing the mentioned issues is
calculation of financial ratios. The specific ratios considered
are total-debt-to-total-assets ratio, calculation of liability, and
determination of the net worth. It is important to consider the
ratio because it shows the financial leverage of the corporation.
Specifically, it considers all the total assets of the corporation
including tangible and intangible assets. The ratio measures
how much of the corporation’s assets are financed by debt. The
ratio indicates how the corporation has grown its assets over
time. It helps planners to determine if the corporation has
enough assets to meet its debt obligations.
Total-debt-to-total-assets ratio
The total-debt-to-total-assets ratio analyses the city’s balance
sheet to determine the value of debt relative to its asset. The

7. ratio determines the financially stability of the corporation.
When the total-debt-to-total-assets ratio is high, it means the
degree of advantage is high (Kenton, 2020). As a result, it is
risky to invest in the organization because most of the assets are
financed by debts. The formula used for determining the total-
debt-to-total-assets ratio is total debt divided by the total assets.
The rationale of using the ratio is because as a leverage ratio it
highlights how the corporation has grown (Williams, 2017). As
a city, the ratio is necessary in attracting funding from creditors
who use the ratio to determine if the city can repay the existing
debt. For purposes of the research, it shows the extent to which
the organization has improved without relying on debt. The
table below shows the total-debt-to-total-assets ratio for the
four years
2015
2016
2017
2018
Total assets
315,068,814
337,519,822
346,143,957
356,376,077
Total debt
41,585,954
57,775,513
57,672,302
55,528,269
total-debt-to-total-assets ratio
0.131
0.171
0.167
0.156
Net Position

8. During the last four years, the City of Doral experienced
increased construction of buildings and growth of investments
that increased the city’s tax base. In 2018, the corporation
raised $12.081 billion; the expansion in the tax base arose due
to diversification of investments in areas such as retail and
wholesale trade, light manufacturing, construction and tourism
(City of Doral, 2018). Generally, the corporation’s assets
exceeded its deferred inflows of resources and liabilities. The
table below shows the a summary of the net position of City of
Doral
2015
2016
2017
2018
Net Position
276,044,345
291,877,613
300,590,734
311,036,836
Analysis Results
Analysis of total-debt-to-total-assets ratio shows that the city’s
assets are relatively higher than the liabilities that mean very
few of the city’s assets are financed by debt. Consequently, the
city is able to attract creditors because it is able to pay its
debts.
Liabilities
The calculation of the liabilities considered financial aspects

9. that contribute to liabilities in in the city. It includes loans,
accrued interests, accounts payable, and escrow deposits. The
city’s liabilities have been reducing since 2016.
Net position
The city’s net worth increased over the four years. The
increment in the city’s net worth is attributed to the increment
in the government activities and business type activities. Among
the government activities include investments in land,
buildings, equipment, and infrastructure. The net worth of the
city includes information on the value of assets, liabilities,
deferred outflows, and inflows. There has been a gradual
increase in the net worth of city, which indicates that the
financial position is improving. Importantly, the improvement
in the net worth of the city is also attributed to the
comprehensive internal controls that protect the city’s assets
from loss, misuse, or theft.
Conclusions
Whereas the city’s total-debt-to-total-assets ratio is relatively
low, during the last three years, it has been decreasing. The
assets have been increasing. Based on the analysis, the
economic outlook of the city is promising. There is improved
city’s fleet of vehicles, and improved infrastructure and parks.
Furthermore, the city’s airport provides opportunities for
international trade and trade with other cities within Florida.
The improvement in the airport attracted international
passengers who increased the cash flow within the city.
The financial information provided and the resultant analysis
shows that the city continues to expand its budget as part of
meeting the necessary capital projects with the aim of
improving, preserving, creating, and enhancing the city’s

10. infrastructure and public facilities. In fact, the capital
development attracts more investments that improve its revenue
base (City of Doral, 2018).
Based on the summary of the net position, the corporation’s
liabilities reduced during the last two years; namely 2018 and
2017. However, its total assets increased leading to increase in
its net position. Based on the positive financial performance of
the corporation, it can meet its budget estimates and effectively
plan for future development activities. Notably, during the
budget making process, the city of Doral engages the public
through public participation policy in order prioritize
development areas and ways of expanding or maintaining its
revenue base. Among the corporation’s assets that are, the
highest are transport, energy and buildings.
Recommendations
· In order to sustain the development and improvement, the city
should continue collaborating with private entities located
within it. For instance, as part of increasing revenue the city
should collaborate with schools to use its parks and other
suitable infrastructure for suitable activities such as sporting or
picnics. The city may use the schools’ facilities for activities
such as additional parking in suitable places.
· In addition, the city’s levies and property taxes should be
competitive in order to continue attracting high value
investments. Attraction of investment is necessary in increasing
the city’s revenue.
· In terms of deferred inflows and outflows, the city should
continue reducing the deferred inflows. Moreover, it should
increase the deferred outflow.
· Whereas the city has sound financial position, it is exposed to
some risks that include theft, intentional misuse, and
destruction of assets. In order to reduce risk, the city should
insure of the high-risk assets and put stringent control

11. mechanisms.
· Furthermore, part of the city’s liabilities is attributed to the
leases; for example, the city leased the land that was used to
construct the police station (Doral City, 2018). The lease
expires in 2058. In order to avoid liabilities related to leases,
the city should invest in land and construct a police station. The
strategy will reduce the liabilities.
Summary
The above ratio and calculations show that the financial
position of the city is gradually increasing based on the
management strategies initiated. By reducing wastage,
controlling theft and loss, the city’s assets increase.
Furthermore, the city has invested in necessary capital assets
that ensure sustained revenue collection; the situation reduces
its liabilities relative to the assets. The city should continue
investing in capital projects in the long term such as improving
storm water drainage system; the measure will increase the
long-term revenue from both business and government activities
because an appealing city will continue attracting more
investors and settlers.
References
City of Doral, (2018). 2018 Comprehensive Annual Financial
Report. Web. Accessed on
23/4/2020.
Folger, J (2020). What is an Asset? Web. Accessed on
23/4/2020
Hayes, A (2019). Liability Definition. Web. Accessed on
23/4/2020.
Kenton, W (2020). The Total-Debt-to-Total Assets ratio
Definition. Web. Accessed on
23/4/2020

12. Madan, M. O (2017). Why is Everyone Moving to Doral?
Census says it’s the Fastest Growing
City in Florida. Web. Accessed on 23/4/2020.
Williams, R (2017). How Does an Organization Use Ratios.
Web. Accessed on 23/4/2020