The URL can be used to link to this page

Home My WebLink About; ; 1972 Building Authority Audit Report; 1972-06-30Carlsbad Building Authority AUDIT REPORT June 30, 1972 s, B&flimey, CERTIFIED PUBLIC ACCOUNTANTS Carlsbad Building Authority AUDIT REPORT June 30, 1972 INDEX June 30, 1972 Page Number Accountant's report 1 - 2 Consolidated statement of financial position 3 Statement of changes in fund balances 4 Statement of operations k Construction fund 5 Bonded indebtedness 5 CflB&OLL & uftflnTL-EY, flSSOCIflTtS CERTIFIED PUBLIC ACCOUNTANTS W. T. CARROLL, C. P. A. H. W. BRANTLEY, C. P. A. 1756 ORANGE AV E N U ET COSTfl m€5fl. CflLIFOBnifl 92627 AREA CODE 714 646 -442S MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Governing Board of Carlsbad Building Authority Carlsbad City Hal 1 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, 1972 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, 1972 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, 1972, $1,050.16 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- The amount to be transferred is $2,311.08. In addition, the remaining balance in the construction fund of $4.01 should be transferred to the in- terest fund and the construction fund liquidated. These transfers should take care of the $1,109 deficit in 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 September 30, 2007. The ownership of the assets will be vested in the City upon termination. CARROLL & BRANTLEY By Costa Mesa, California October 6, 1972 WTC/mam -2- Carlsbad Building Authority CONSOLIDATED STATEMENT OF FINANCIAL POSITION June 30, 1972 ASSETS Con- Working Fixed Assets Con- struction Capital Reserve Interest and Bonded solidated Fund Fund Fund Fund Indebtedness Cash with Trustee: Commercial accounts 10,576 Savings accounts 24,430 Future basic lease pay- ments to be received 425,000 Building and improvements 431,635 10,576 850 23,111 465 425,000 431,635 891,641 850 23,111 11,041 856,635 LIABILITIES AND FUND BALANCES Accounts payable Matured coupons unpaid Revenue bonds payable Reserve for construction Investment in building and improvements Fund balances (deficit) ( ) Denotes deduction "" Estimated trust fee * 400 12,150 425,000 4 431,635 22,452 891,641 400 12,150 425,000 4 431,635 450 23,111 (1,109) 4 850 23,111 11,041 856,635 -3- Carlsbad Building Authority STATEMENT OF CHANGES IN FUND BALANCES FUND Reserve Interest Working capital Revenues: Building lease income Interest Expenses: Audit fees Trustee's fees Interest expense on bonded indebtedness ^ Net Revenues ** Transfers in (out) *** Bonds redeemed °" Net Additions (Decrease) -* to Fund Balances Year Ended Fund Balances July 1, 1971 23,715 (5,916) 975 18,77^ STATEMENT Year Ended Total 37,526 2,178 39,704 185 400 25,800 26,385 13,319 359 (10,000) June 30, 1972 Revenues 1,285 38,359 60 39,704 OF OPERATIONS June 30, 1972 Reserve Fund 1,285 1,285 _ 1,285 (1,889) Expend i tures 1,889 33,552 585 36,026 Interest Fund 37,526 833 38,359 25,800 25,800 12,559 2,2^8 (10,000) Fund Balances June 30, 1972 23,111 (1J09) 450 22,452 Working Cap i tal Fund 60 60 185 400 £85 (525) 3,678 (604)4,807 (525) -4- Carlsbad Building Authority CONSTRUCTION FUND Year Ended June 30, 1972 Prior year transactions: Revenues 466,004 Expenditures 431,635 34,369 Transfers to other funds 34,026 343 Current transactions: Interest earned 20 Transfers to other funds (3j?9) Reserve for Construction - June 30, 1972 4 BONDED INDEBTEDNESS June 30, 1972 Maturity Annual Date Payments Total December 15 1972/1976 10,000 50,000 1977 15,000 15,000 1978/1984 20,000 140,000 1985/1989 25,000 125,000 1990/1991 30,000 60,000 1922 35,000 35.000 425,000 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. -5-