HomeMy WebLinkAbout; ; 1971 Building Authority Audit Report; 1971-06-30Carlsbad Building Authority
AUDIT REPORT
June 30, 1971
Cfl&&OLL & BRflllTL€y, flSSOCIflT€S
CERTIFIED PUBLIC ACCOUNTANTS
Carlsbad Building Authority
AUDIT REPORT
June 30, 1971
INDEX
June 30, 1971
Page
Number
Accountants' report 1 - 2
Consolidated statement of financial position 3
Statement of changes in fund balances 4
Statement of operations 4
Construction fund 5
Bonded indebtedness 5
CflfcftOLL & B&flnTLey, fl5SOCIflT€S
CERTIFIED PUBLIC ACCOUNTANTS
W. T. CARROLL, C. P. A.
H. W. BRANTLEY, C. P. A.
I7S6 ORANGE AVENUE
COSTfl m€Sfl, CflLlfOenifl 92627
AREA CODE 714
64S-442S
MEMBERS AMERICAN
INSTITUTE OF CERTIFIED
PUBLIC ACCOUNTANTS
Governing Board of Carlsbad
BuiIding Authority
Carlsbad City Hall
Carlsbad, California
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,
1971 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, 1971 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
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 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. At June 30, 1971, $525.^ was needed to restore this fund
to its required balance. 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 trans-
ferred to the interest fund on June 30 and December 31 and we
recommend this be accomplished. The amount to be transferred is
$2,915-07. In addition, the remaining balance in the construction
fund of $3^-3.^-6 should be transferred to the interest fund and the
construction fund liquidated.
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 28, 1971
WTC/mam
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Carlsbad Building Authority
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
June 30, 1971
ASSETS
Con- Working Fixed Assets
Con- struction Capital Reserve Interest and Bonded
solidated Fund Fund Fund Fund Indebtedness
m Cash with Trustee:
*w Commercial accounts
Savings accounts
m Future basic lease pay-
— ments to be received
*~ Building and improvements
(4,251)
25,168 343 975 23,715
435,000
431,635
135
435,000
431.635
887.552 343 975 23,715 (4.116) 866,635
LIABILITIES AND FUND BALANCES
Matured coupons unpaid
Revenue bonds payable
Reserve for construction
Investment in building and
improvements
Fund balances (deficit)
1
435
431
18
887
,800
,000
343
,635
,774
,552
343
343
1,800
23,715 (5.916)
435,000
431,635
975 23,715 (4,116) 866,635
( ) Denotes deduction.
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Carlsbad Building Authority
STATEMENT OF CHANGES IN FUND BALANCES
FUND
Reserve
Interest
Working capital
Revenues:
Building lease income
I nterest
Expenses:
Audit fees (2 years)
Trustee's fees
Interest expense on bonded
i ndebtedness
Net Revenues
Bonds redeemed
Net Additions (Decrease)
to Fund Balances
Year Ended
Fund Balances
July 1, 1970
22,689
(3,857)
2,314
21,146
STATEMENT
Year Ended
Total
3^,000
1,475
35,475
595
852
26,400
27,847
7,628
10,000
June 30, 1971'
Revenues
1,026
34,341
108
35 .475
OF OPERATIONS
June 30, 1971
Reserve
Fund
1,026
1,026
1,026
Expend i tures
36,400
1,447
37,847
Interest
Fund
34,000
341
34,341
26,400
26,400
7,941
10,000
Fund Balances
June 30, 1971
23,715
(5,916)
975
18,774
Working
Capital
Fund
108
108
595
852
1,447
(1,339)
(2,372)1 ,026 .339)
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Carlsbad Building Authority
CONSTRUCTION FUND '
Year Ended June 30, 1971
Prior year transactions:
Revenues 465,991
Expenditures 431,635
34,356
Transfers to other funds 34,026 330
Current transactions:
Interest earned 13
Reserve for Construction - June 30, 1971 343
BONDED INDEBTEDNESS
June 30, 1971
Maturity Annual
Date Payments Total
December 15,
1971/1976 10,000 60,000
1977 15,000 15,000
1978/1984 20,000 140,000
1985/1989 25,000 125,0001990/1991 30,000 60,000
1992 35,000 35.000
435,000
All bonds bear interest at 6% per annum payable June 15 and December 15 and are se-
cured 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.
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