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Home My WebLink About; ; 1968 Building Authority Audit Report; 1968-10-14Carlsbad Building Authority AUDIT REPORT October 14, 1968 & CERTIFIED PUBLIC ACCOUNTANTS Cflfc&OLL & BBflflTLfy, flSSOCIflTiS CERTIFIED PUBLIC ACCOUNTANTS W. T. CARROLL, C. P. A. H. W. BRANTLEY, C. P. A. SOI DOVER DRIVE, SUITE 22O nCUJPOBT B€flCH, CflUfOftnifl 92660 AREA CODE 714 42e • 545-7792 MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MEMBERS CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Governing Board of Carlsbad Building Authority Carlsbad City Hal 1 Carlsbad, California Gent letnen : We have examined the consolidated statement of financial posi- tion of all existing funds of the Carlsbad Building Authority at October 14, 1968 and the related summary of Trustee trans- actions by funds from inception thru October 14, 1968. 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 statements present fairly the financial position of each of the funds at October 14, 1968 and the results of the Trustee's transactions from inception thru October 14, 1968, in conformity with generally accepted accounting principles. The United States National Bank is the authorized trustee for the various funds and is also the paying agent for the bond interest and principal as coupons and bonds are presented for payment. They disburse only upon written request from the Authority, but are permitted to invest funds in savings ac- counts and certificates of deposit. Eight funds were created by the revenue bond indenture and are to be used (and reflected in the records) only as monies are received. Owing to the fact that the first interest payment on the bonds was due June 15, 1968, before lease payments were received from the City of Carlsbad, the interest owing was transferred from the construction fund to the interest fund leaving a balance of $432 after all known construction bills were charged in the construction fund. The working capital fund is for the payment of miscellaneous expense and must be reimbursed so that $1,500 is maintained at all times. The amount of $20,800 must be retained in the re- "** serve fund and represents one-half of the highest annual debt m service cost. Since a debt service schedule will not be avail- able for sometime, preliminary calculations indicated that this •* amount is correct, or substantially so. Interest earned on these funds may be transferred to the revenue fund on June 30 and December 31 when such fund comes into existence as lease „ payments are received. - Annual rent due the Authority is $3^,000 (plus other specific costs) and is payable by the lessee on July 1 and delinquent * July 31. The agreement expires in forty years or sooner if • the bonds are retired prior to the lease termination date of September 30, 2007. The ownership of the assets will be vested •» in the City upon termination. The bonds are dated December 15, 1967, with 6% interest pay- m .ments on those bonds outstanding. Semi-annual installments are due June 15 and December 15 and the first principal pay- * ment of $5,000 is due December 15, 1968. $10,000 is due each year for the subsequent eight years, etc. <» , CARROLL & BRANTLEY, ASSOCIATES 'artner Newport Beach, California December 10, 1968 ft i ASSETS Cash with Trustee : Commercial accounts Savings accounts Future basic lease payments to be received Amounts available in reserve and interest funds LIABILITIES AND FUND BALANCES Accounts payable - construc- tion obi igat ions Matured coupons unpaid Revenue bonds payable Interest payable to maturity - Note 1 Fund balances Carlsbad Building Authority CONSOLIDATED STATEMENT OF FINANCIAL POSITION . October 14, 1968 Working Construction Capital Reserve Consolidated Fund Fund Fund 4,749 1,263 1,500 1,305 21,659 1,659 20,000 1,360,000 21,536 1,407,944 2,922 1,500 21,305 2,490 2,^90 450 r 460,000 921,536 23,468 432 1,500 21,305 1,407,944 2,922 1,500 21,305 Interest Bonded Fund Indebtedness 681 1,360,000 21,536 681 1,381,536 450 460,000 921,536 231 681 1,381,536 Note 1 - This amount may be subject to possible adjustment upon eventual receipt of debt service schedule from the Trustee. ft I Carlsbad Building Authority SUMMARY OF TRUSTEE TRANSACTIONS BY FUNDS Incept ion Consol idated Drurmirc TotalREVENUES : Sale of bonds Accrued interest on sale Premium received Interest earned Total Revenues EXPENDITURES OR OBLIGATIONS: Construction contract Consu It ing Legal and title expenses Printing and advertising Wall construction Furniture, shelving & equipment Carpet ing Maintenance supplies- Other expenses including land- scaping to date Interest paid on bonds due June 15, 1968 Total Costs TRANSFERS TO FUNDS FROM CON- STRUCTION FUND: V/orking capital fund Reserve fund Interest fund MATURED INTEREST COUPONS UNPAID Fund Balances October 14, 1968 Represented By: Cash in bank Savings accounts Accounts payable and unpaid coupons 460,000 2,070 4 6,695 468,769 376,058 5,250 7,817 4,969 2,739 18,153 10,999 1,800 3,716 13,350 444,851 23,918 (450) 23,468 4,749 21,659 (2,940) 23,468 thru October 14, 1968 CONSTRUCTION Total 460,000 5,959 465.959 376,058 5,250 7,817 4,969 2,739 18,153 10,999 1 ,800 3,716 431,501 34,458 (1,500) (20,800) (11,726) 432 1 ,263 1,659 (2,490) 432 FUND Accounts Cash Trans- Payable actions - 1,667 580 175 68 2,490 (2,490) (2,490) (2,490) (2,490) 460,000 5,959 465.959 374,391 5,250 7,817 4,969 2,159 17,978 10,999 1,800 3,648 429,011 36,948 (1,500) (20,800) (11,726) 2,922 1,263 1,659 2,922 Working Capital Reserve Interest Fund Fund Fund 2,070 4 505 231 505 2,305 13,350 13,350 505 (11,045) 1,500 20,800 11,726 (450) 1,500 21,305 231 1,500 1,305 681 20,000 (450) 1,500 21,305 231