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HomeMy WebLinkAbout; ; 1977 Building Authority Audit Report; 1977-06-30Carlsbad Building Authority AUDIT REPORT June 30, 1977 Cflfc&OLL & P€nDL€TOn, flSSOCIflT£S CERTIFIED PUBLIC ACCOUNTANTS Carlsbad Building Authority AUDIT REPORT June 30, 1977 INDEX Page Number Auditors' Report 1 Combined Balance Sheets 2-3 Statement of Operations and Changes in Fund Balances 4-5 Bonded Indebtedness 6 CM&OLL & P€llDLETOn, flSSOCIflT€S CERTIFIED PUBLIC ACCOUNTANTS W. T. CARROLL, C. R A. D. L. PENDLETON, C. R A. October 1^, 1977 I7S6 ORANGE AVENUE COSTS mtSfl, CflLIFOftnifl 92627 AREA CODE 714 646-4428 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 Combined Balance Sheets of all funds of the Carlsbad Building Authority at June 30, 1977 and the related Statement of Operations and Changes in Fund Balances 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, 1977 and the results of operations for the fiscal year then ended, in conformity with generally accepted accounting principles. The books are kept on an accrual basis for material amounts. The Authority was created pursuant to Section 6506 of the Government Code of California by a joint powers agreement dated October 1, 19&7 between the City of Carlsbad and the County of San Diego. Crocker 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 accounts and certificates of deposit, as well as other legal investments. Annual rent due the Authority is $36,000 (plus other specific costs) and is payable by the lessee on July 1, and delinquent July 31. The agreement expires in forty years from inception in 19&7 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. Fire and liability insurance on the facility is paid for by the City of Carlsbad and is included in a package policy which is reviewed annually. CARROLL & PENDLETON, ASSOCIATES dma M | «- COMBINED BALANCE SHEETS June 30, 1977 ASSETS Cash and investments with Trustee: Commercial accounts Savings accounts Treasury bills - at cost Future basic lease payments to be received Building and improvements LIABILITIES AND FUND BALANCES Advance rent received Accounts payable (estimated) Matured coupons unpaid Revenue bonds payable Investment in building and improvements Fund balances (deficit) Comb i ned 161 46,975 34,109 375,000 431.635 887.880 36,000 470 *4* 375,000 431,635 44,775 887.880 Reserve Fund 16 1,023 19,478 20,517 20.517 -All matured coupons were redeemed during the fiscal year. —2- Interest Fund 41 22,050 22,091 Working Capital Fund 11 1,500 1.511 Revenue Fund 89 7,402 14,631 22T122 Redemp- tion Fund 4 15,000 15.004 Fixed Assets and Bonded Indebtedness 375,000 431.635 806.635 470 36,000 22.091 1.041 (13.878) 15.004 22.091 1.511 22.122 15.004 375,000 431,635 STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCES Year Ended June 30, 1977 Combined Reserve Fund Revenues: Building lease income Interest 36,000 3.821 39.821 1.^77 1,^7.7 Expenses: Audit fees Trustee's fees Interest expense on bonded indebtedness Net revenues (excess of expenses) Transfers in (out) Bonds redeemed Net Additions (Reductions) to Fund Balances Fund balances (deficit): July 1, 1976 June 30, 1977 220 470 22.800 23.^90 16,331 (10,000) 6,331 (2,^8) (971) 21,^88 20.517 Interest Fund 920 920 22JJOO 22,800 (21 ,880) 21,106 (77*0 22,865 22.091 Working Capital Fund 60 60 220 470 690 (630) 599 (3D 1,072 1 .041 Revenue Fund 36,000 1,097 37,097 - 37,097 (33,974) 3,123 (17,001) (13.878) Redemption Fund 267 267 _ 267 14,717 (10.000) 4,984 10,020 15,004 -5- BONDED INDEBTEDNESS June 30, 1977 Annual Maturity Date Payments Total December 15, 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 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. -6-