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Home My WebLink About; ; 1970 Building Authority Audit Report; 1970-06-30Carlsbad Building Authority AUDIT REPORT June 30, 1970 Cflfc&OLL & BCflnTLEU, flSSOCIflTES CERTIFIED PUBLIC ACCOUNTANTS Carlsbad Building Authority AUDIT REPORT June 30, 1970 INDEX June 30, 1970 Page Number Accountants ' report 1 - 2 Consolidated statement of financial position 3 Statement of changes in fund balances ^ Statement of operations k Construction fund 5 Bonded indebtedness 5 Cfl&&OLl & B&flnTL£y, flSSOClflTES CERTIFIED PUBLIC ACCOUNTANTS 17 S 6 ORANGE AV E N U E cosifl mtsfl. cfliifoanifl 926Z7 AREA CODE 7I«* W. T. CARROLL, C. P. A. M.W. BRANTLEY, C. P. A.MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Governing Board of Carlsbad Building Authority Carlsbad City Hall Carlsbad, Californ ia MEMBERS CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Gentlemen: We have examined the consolidated statement of financial posi- tion of all funds of the Carlsbad Building Authority at June 30, 1970 and the related statement of fund balances and the state- ment of operations for the fiscal year then ended. Our examina- tion 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 June 30, 1970 and the results of operations for the fiscal year then ended, 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 D i ego. 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 cer- tificates of deposit. 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 interest fund on June 30 and December 31 and we recommend this be accomplished. In addition, the remaining balance in the con- struction fund should be transferred to the interest fund. 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 By_ Costa Mesa, California October 19, 1970 WTC/mam -2- Carlsbad Building Authority CONSOLIDATED STATEMENT OF FINANCIAL POSITION June 30, 1970 ASSETS Cash with Trustee: Commercial accounts Savings accounts Future basic lease pay- ments to be received Building and improvements Con- Working Fixed Assets Con- struction Capital .Reserve .Interest and Bonded solidated Fund Fund Fund Fund Indebtedness 199 25,854 445,000 431,635 902,688 63 1,550 505 (1,919) 267 2,791 22,184- 612 445,000 431,635 330 4,341 22,689 (1,307) 876,635 LIABILITIES AND FUND BALANCES Accounts payable Matured coupons unpaid Revenue bonds payable Reserve for construction Investment in building and improvements Fund balances (deficit) 2,027 2,550 445,000 330 431,635 21,146 902,688 330 2,027 2,550 2,314 22,689 (3.857> 445,000 431,635 330 4,341 22,689- (1,307) ' 876,635 -* ( ) Denotes deduction. -3- FUND Reserve Interest Working capital Revenues : Building lease income Interest Carlsbad Building Authority STATEMENT OF CHANGES IN FUND BALANCES Expenses: Interest expense on bonded indebtedness Net Revenues Bonds redeemed Net additions (decrease) to Fund Balances Year Ended June 30, 1970 Fund Balances July 1, 1969 22,015 424 680 23,119 STATEMENT Year Ended Total 34,000 1,027 35,027 3d 27,000 8,027 10,000 Revenues Expenditures 674 32,719 37,000 1,634 35,027 37,000 OF OPERATIONS June 30, 1970 Reserve Interest Fund Fund 32,450 674 269 674 32,719 27,000 674 5,719 10,000 Fund Balances June 30, 1970 22,683 (3,857) 2,314 21,146 Working Capital Fund 1,550 84 1,634 1,634 (1,973)674 (4,281)1,634 -4- Carlsbad Building Authority CONSTRUCTION FUND Year Ended June 30, 1970 Prior year transactions: Revenues 465,983 Expenditures 43 V. 635 34,348 Transfers to other funds 34.026 322 Current transactions: Interest earned 8 Reserve for Construction - June 30, 1970 330 BONDED INDEBTEDNESS June 30, 1970 Maturity Annual Date Payments Total December 15, 1970/1976 10,000 70,000 1977 15,000 15,000 1978/1984 20,000 140,000 1985/1989 25,000 125,000 1990/1991 30,000 60,000 1992 35,000 35,000 445,000 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 maturity as set forth in the resolution. -5-