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Home My WebLink About; ; 1969 Building Authority Audit Report; 1969-06-30Carlsbad Building Authority AUDIT REPORT June 30, 1969 CflfcfcOLL & BfcflnTLEg, flSSOCIflTES CERTIFIED PUBLIC ACCOUNTANTS Carlsbad Building Authority AUDIT REPORT June 30, 1969 INDEX June 30, 1969 Page Number Accountants' report 1-2 Consolidated statement of financial position 3 Statement of changes in fund balances 4 Statement of operations 4 Bonded indebtedness 5 Construction fund 5 Cflfc&OLL & B&flnTL£y,flS5OClflT€S CERTIFIED PUBLIC ACCOUNTANTS W. T. CARROLL, C. P. A. M, W. BRANTUEY, C. P. A. 9OI DOVER DRIVE, SUITE 22O &€«CH, cfliifo&nifl 9Z660 AREA CODE 714 646-4428 • 545-7792 MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MEMBERS CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Governing Board of Carlsbad Building Authority Carlsbad City Hall Carlsbad, California Gentlemen: We have examined the consolidated statement of financial posi- tion of all funds of the Carlsbad Building Authority at June 30, 1969 and the related statement of fund balances and the state- ment of operations from October 15, 1968 to June 30, 1969. 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 con- sidered necessary in the circumstances. In our opinion, the accompanying statements present fairly the financial position of each of the funds at June 30, 1969 ancl the results of operations from October 15, 1968 to June 30, 1969, in conformity with generally accepted fund accounting principles. The Authority was created pursuant to Section 6506 of the Govern- ment Code of California by a joint powers agreement dated Octo- ber 1, 1967 between the City of Carlsbad and the County of San Diego. The United States National Bank is the authorized trustee for the various funds and is also the paying agent for the bond in- terest and principal as coupons and bonds are presented for pay- ment. They disburse only upon written request from the Authority, but are permitted to invest funds in savings accounts and certifi- cates of deposit. In this connection, we note that moneys held in any fund created by the agreement may be invested in Federal Securities by the Trustee (Section 7.03) and we therefore suggest that substantially larger interest rates may be obtained by direct- ing the Trustee to so invest (particularly "reserve" funds) inas- much as the interest yields are perhaps double that of the present savings accounts. The working capital fund is for the payment of miscellaneous ex- pense and must be reimbursed so that $1,500 is maintained at all times. An amount of $20,800 must be retained in the reserve fund and represents one-half of the highest annual debt service cost. Interest earned on these funds may be transferred to the revenue fund on June 30 and December 31 and we recommend this be accompl ished. 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 Sep- tember 30, 2007. The ownership of the assets will be vested in the City upon termination. CARROLL & BRANTLEY, ASSOCIATES I Partner Newport Beach, California October 23, Carlsbad Building Authority CONSOLIDATED STATEMENT OF FINANCIAL POSITION m m June 30, 1969 Con- Working struction Capital Reserve ASSETS Consolidated Fund Fund Fund Cash with Trustee: Commercial accounts Savings accounts Future basic lease pay- ments to be received Amounts available in re- serve and interest funds Building and improvements 15,655 63 2,707 505 22,113 259 21,510 1,326,647 22,439 431,635 1,818,489 322 2,707 22,015 Fixed Asset: Interest and Bonded Fund Indebtednes 12,380 344 1,326,647 22,439 431,635 12,724 1,780,721 LIABILITIES AND FUND BALANCES Accounts payable Matured coupons unpaid Revenue bonds payable Interest unpaid to ma- turity Reserve for construction Investment in building and improvements Fund balances 2,027 2,027 12,300 455,000 894,086 322 322 431,635 23,119 ' 680 22,015 1,818,489 322 2,707 22,015 12,300 455,000 894,086 43 1 , 635 424 12,724 1,780,721 -3- Carlsbad Building Authority STATEMENT OF CHANGES IN FUND BALANCES FUND Reserve Interest Working capital. Revenues: Building lease income Interest Expenses: Interest expense Audit fees Trustee's fees Net Revenues Bonds redeemed Net additions to Fund Balances October 15, 1968 to Fund Balances October 15,1968 21,305 231 1,500 23,036 June 30, 1969 Revenues 710 32,643 1,592 34,945 Expenses 32,450 2,412 34,862 Fund Balances June 30, 1969 22,015 424 680 23,119 STATEMENT OF OPERATIONS October 15, 1968 to Total 34,000 945 34,945 27,450 385 2,02? 29,862 5,083 5,000 83 June 30, 1969 Reserve Fund Ziozm - 710 710 Interest Fund 32,450 193 32,643 27,450 27.450 5,193 5,000 193 Working Capital Fund 1,550 42 1.592 385 2.027 2,412 (820) (820) ( ) - Denotes deduction. -4- Maturity Date December 15, 1969/1976 1977 1978/1984 1985/1989 1990/1991 1992 Carlsbad Building Authority BONDED INDEBTEDNESS June 30, 1969 Annua1 Payments 10,000 15,000 20,000 25,000 30,000 35,000 Total 80,000 15,000 140,000 125,000 60,000 35.000 455,000 All bonds bear interest at 6% per annum payable June 15 and December 15 and are secured only by revenues of the Authority. Bonds maturing on or after December 15, 1979 are subject to call and redemption prior to ma- turity as set forth in the resolution. CONSTRUCTION FUND October 15, 1968 to June 30, 1969 Prior year transactions: Revenues Expend itures Transfers to other funds Current transactions: Additional construction costs Less Interest earned 465,959 431,501 34,458 34.026 134 24 432 Reserve for Construction - June 30, 1969 322 -5-