HomeMy WebLinkAbout; ; 1958 CMWC Report and Audit; 1958-08-22L S EVERTS CPA 11916 1946)
CARLM ESENOFF.C P A
ALBERT M HUDSON CPA
JOHN T SWAN.C P A
HAMILTON MOODY CPA
CHARLES C PORTER CPA
HERBERT L BECKETT CPA
CHARLES W LAMDEN CPA
ROY M HERAMB CPA
TlLEPHONl BELMONT 4.6101
EVERTS AND ESENOFF
CERnFiED PUBLIC ACCOUNTANTS
SUITE 727 FIRST NATIONAL BUILDING
SAN DIEGO 1,CALIFORNIA
MEMBERS
AMERICAN INSimiTE OF
CERTIFIED PUBLIC ACCOUNTANTS
CALIFORNIA SOCIETT OF
CERTIFIED PUBLIC ACCOUNTANTS
OTHER OFFICES
EL CAJON.CALIFORNIA
OCEANSIDE,CALIFORNIA
August 22, 1958
Mr. C. A. Anthony, President
Board of Di rectors
Carlsbad Mutual Water Company
Carlsbad, California
Dear Si r:
We have examined the financial records of the Carlsbad Mutual Water Company
and have prepared the attached statement of financial position at July 31s' 1958
and related statement of operations and margins for the seven month period then
ended. Our examination was made in accordance with generally accepted auditing
standards, and accordingly included such tests of the accounting records and such
other auditing procedures as we considered necessary in the circumstances.
In our opinion, the accompanying statement of financial position and statement
of operations and margins present fairly the financial position of the Carlsbad
Mutual Water Company at July 31, 1958 and the results of its operations for the
seven month period then ended, in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceding year.
Yours very truly.
-or Everts and Esenoff
Certified Public Accountants
COMMENTS RESPECTING OPERATIONS AND MARGINS
The statement of operations and margins for seven months ended July 31, 1958
is shown on exhibit A. Following is a brief summary of this statement:
Q.uanti ty of water billed to shareholder
water users (acre feet)
Credi ts:
Shareholder water users purchases,
transfer charges, commissions, etc.
Charges:
Water production and purification
Water transmission and distribution
General overhead
Admi ni strati ve
Debt service expense
Total charges
Net margin (loss) on operations
$48,439.19
34,803.54
6,981.94
33,515.57
1,019.48
1.036.30
$114,804.03
124,759.72
$ (9.955.69)
The following statement shows the source of funds derived during the period
from January 1, 1958 to July 31, 1958, and how these funds were used:
SOURCE OF FUNDS:
Funds derived from shareholders:
Net margin (loss) on operations
Add depreciation, a charge requiring
no direct outlay of funds
Contributions for meters, services,
and pipeline extensions
Pipeline fees
Decrease in construction work in progress
Decrease in net working capital
HOW FUNDS WERE APPLIED:
Additions to plant and equipment:
Transmission and distribution lines
Booster station
Meters and services (net)
Ai r compressor
Office equipment
Warehouse inventory adjustment
Uncollectible accounts
Payment of sewer bonds
Prepayment of dissolution expenses
$(9,955.69)
23,111.20 $13,155.51
12,088.30
848.75
$10,194.60
2,707.67
11,822.61
3,160.00
493.12
$26,092.56
218.39
8,044.30
$34.355.25
$28,378,00
1,478.08
1,183.59
340.00
2,975.58
$34.355.25
COMMENTS RESPECTING FINANCIAL POSITION
The statement of financial position is presented on exhibit B. Following is
a condensed comparison of the Company's position at July 31, 1958 and December 31i
1957:
CURRENT ASSETS:
Cash on hand and on deposit
Accounts receivable
Prepayments
Total current assets
LESS CURRENT LIABI LITIES
Net working capital
ADD OTHER ASSETS:
Investments
Plant and equipment (net)
Construction work in progress
DEDUCT OTHER LIABILITIES:
Sewer bonds payable
SHAREHOLDERS' EQUITY
July 31, December 31, 1ncrease
1958 1957 (Decrease)
$ 10,843.51 $ 1,983.41 $ 8,860.10
23,694.68 15,300.27 8,394.41
46,895.29 58,299.42 (11,404.13)
81,433.48 75,583.10 5,850.38
81,610.32 67,715.64 13,894.68
(176.84) 7,867.46 (8,044.30)
191.54 (191.54)
1,075,684.52 1,070,951.00 4,733.52
16.00 234.39 (218.39)
1,075,523.6B 1,079,244.39 (3,720.71)
340.00 (340.00)
$1,075,523.68 $1,078,904.39 $(3,380.71)
Following is a summary of changes in shareholders' equities for the seven
month period ended July 31, 1958:
SHAREHOLDERS' EQUITIES WERE INCREASED BY:
Contributions for meters, services and
pipeline extensions $12,088.30
P i pe1i ne fees 848.75
Total $12,937.05
SHAREHOLDERS' EQUITIES WERE DECREASED BY:
Loss on operations--exhibit A 9,955.69
Loss on retirement of pipelines and equipment 533.28
Inventory loss 1,478.08
Uncollectible accounts 1,183.59
Prepayment of dissolution expenses 2,975.58
Reservation for treasury stock 191.54
Total 16,317.76
Net increase (decrease) in shareholders' equities,
as shown above $(3.380.71)
Exhibi t A
CARLSBAD MUTUAL WATER COMPANY
Statement of Operations and Margins
January 1, 1958 to Ju1y 31, 1958
CREDI TS:
Shareholder water users water purchases
(1036.30 acre feet)
Water stock transfer fees
Commissions earned
Water penalties
Release of secondary drilling rights
Other miscellaneous credits
Total credi ts
CHARGES:
Water production and purification expense:
Power
Purification and production supplies and
expense
Repairs and maintenance
Purchased water
Depreci ation
Water transmission and distribution expense:
Power
Repairs, maintenance and supplies
Other transmission and distribution expense
Depreci ati on
General overhead:
Operation and maintenance--mobi le equipment
Shop supplies, small tools, and
maintenance of structures
Workmen's Compensation insurance
Other general plant expense
Depreci ation
Total
Less overhead applied to jobs
Administrative expense:
Office salaries
General manager
Di rectors' fees
Legal and accounting
Taxes and insurance
Office maintenance, supplies, and expense
Other administrative expense
Depreciation
Total
Less expense applied to jobs
Debt service expense
Total charges
Net margin (loss) on operations
$ 1,091.72
3,770.20
821.77
37,492.08
5.263.42
3,074.58
11,423.81
5,638.82
14,666.33
2,656.09
2,744.53
497.66
2,680.42
2,283.18
10,«61 .m
3,879.94
10,342.11
3,912.50
395.00
1,751.20
14,788.86
2,441.78
1,198.36
868.27
35,698.08
2,182.51
$107,766.47
797.50
1.111.75
829.32
3,287.90
1,011.09
48,439.19
34,803.54
6,981.94
33,515.57
1.019.48
$114,804.03
124,759.72
$ (9.955.69)
Note: Reference is made to the comments accompanying this report,
CARLSBAD MUTUAL WATER COMPANY
Statement of Financial Position
At July 31, 1958
Exhibi t B
ASSETS
CURRENT ASSETS:
Cash on hand and in depositories
Accounts receivable:
Water consumer accounts $20,028.80
Sales and services 3,665.88
Prepayments:
Inventory of materials and supplies 46,337.56
Prepaid general insurance 541.00
Prepaid group insurance 16.73
Total current assets
PLANT AND EQUIPMENT:
Land, water rights, and rights of way
Consumer meters and services
Wells, reservoirs and dams
Purification equipment
Booster pumps and stations
Transmission and distribution lines
Bui Idi ngs
Autos and trucks
Equi pment
Office furniture and fixtures
Total
Less a 1lowance
Net plant and
OTHER ASSETS:
Construction work
for depreciation
equi pment
$ 10,843.51
23,694.68
46,895.29
65,114.92
282,964.90
220,117.75
27,686.73
74,618.95
792,919.44
13,324.23
20,359.33
11.575.83
14,149.95
1,522,«32.03
447,147.51
in progress
LIABI LITIES AND SHAREHOLDERS' EQUITIES
CURRENT LIABI LITIES:
Accounts payable
Note payab1e--bank--unsecured
Due Carlsbad Municipal Water District
for connection fee
Deposits on pipeline installations
Accrued payroll and employee withholding tax
Accrued interest
Property taxes payable
Total current liabilities
SHAREHOLDERS' EQUITIES:
2,000 shares, Class "A" capital stock, $50.00
par value, authorized and issued
Capi tal surplus
Less:
Treasury stock at cost $ 191.54
Prepaid dissolution expenses 2,975.58
Capital stock assessments
Less depreciation and other
charges absorbed by assess-
ments
Total shareholders' equities
$ 385,289.78
3.167J2
1,133,318.97
9.577.33
20,000.00
26,359.50
23,730.00
1,225.51
622.72
95.26
100,000.00
382,122.66
$ 81,433.48
1.075,684.52
16.00
$1.157.134.00
$ 81.610.32
539,917.95 593,401.02
1,075,523.68
$1.157.134.00