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Carlsbad Building Authority
AUDIT REPORT
June 30, 1978
CflB&OLL & P€nDL€TOfl, flS5OCIflT€S
CERTIFIED PUBLIC ACCOUNTANTS
Carlsbad Building Authority
AUDIT REPORT
June 30, 1978
INDEX
Page
Number
Auditors' Report 1
Combined Balance Sheets 2-3
Statement of Operations and Changes in
Fund Balances 4-5
Bonded Indebtedness 6
s. p£nDL£ion,/
CERTIFIED PUBLIC ACCOUNTANTS
W. T. CARROLL, C. R A.
D. L. PENDLETON, C. R A.
I75S ORANGE AVENUE
COSTfl (TIESfl. CflLlfO&nifl 92637
AREA CODE 714
646 - 4428
September 12, 1978
MEMBERS AMERICAN
INSTITUTE OF CERTIFIED
PUBLIC ACCOUNTANTS
MEMBERS CALIFORNIA
SOCIETY OF CERTIFIED
PUBLIC ACCOUNTANTSGoverning Board of Carlsbad
Building Authority
Carlsbad City Hall
Carlsbad, California 92008
Gentlemen:
We have examined the Combined Balance Sheets of all funds of the Carlsbad
Building Authority at June 30, 1978, 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, 1978, 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, 1967 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 1967 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.
The Authority was not named in the liability policy, but we were advised
the agent that this would be corrected at once.
CARROLL £- PENDLETON, ASSOCIATES
by
kkk -1 -
COMBINED BALANCE SHEETS
June 30, 1978
ASSETS
Cash and investments with Trustee:
Commerical accounts
Savings accounts
Treasury bills and notes - at cost
Future basic lease payments to be received
Building and improvements
LIABILITIES AND FUND BALANCES
Advance rent received
Accounts payable (estimated trustee's fee)
Matured coupons unpaid
Revenue bonds payable
Investment in building and improvements
Fund balances (deficit)
(Memorandum)
Combined
124
6,036
76,420
360,000
431,635
36,000
440
360,000
431,635
46,140
874,215
Reserve
Fund
16
1,894
19,280
21.190
21.190
21.190
-'"All matured coupons were redeemed during the fiscal year.
-2-
Interest
Fund
40
2,047
18,953
21rQ40
Working
Capital
Fund
11
858
869
Revenue
Fund
52
554
18,870
19.476
Redemp-
tion
Fund
5
683
19,317
20T005
Fixed Assets
and Bonded
Indebtedness
360,000
431 ,635
791 T635
21.040
21.040
440
429
36,000
(16,524)
19.476
*
20.005
20.00'
360,000
431,635
-3-
STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCES
Year Ended June 30, 1978
Revenues:
Building lease income
Interest
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, 1977
June 30, 1978
(Memorandum)
Comb i ned
36,000
3.087
39.087
260
412
22,050
22.722
16,365
(15.000)
1,365
44.775
Reserve
Fund
1.225
1.225
1,225
(552)
673
Interest
Fund
851
851
22,050
22,050
(21,199)
20,148
(1,051)
22,091
21 .040
Working
Capital
Fund
60
60
260
412
672
(612)
(612)
1,041
42*
Revenue
Fund
36,000
578
36,578
•»
36,578
(39,224)
(2,646)
(13,878)
Redemption
Fund
373
373
373
19,628
(15,000)
5,001
15,004
20.005
-5-
BONDED INDEBTEDNESS
June 30, 1978
Annual
Maturity Date Payments Total
December 15, 1978/198** 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.
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