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Carlsbad Building Authority
AUDIT REPORT
June 30, 1979
Cfl&&OLL & P€llDL£TOn, flSSOCIflT€5
CERTIFIED PUBLIC ACCOUNTANTS
Carlsbad Building Authority
AUDIT REPORT
June 30, 1979
INDEX
Page
Number
Auditors' Report 1
Combined Balance Sheets 2-3
Statement of Operations and Changes in
Fund Balances 4-5
Bonded Indebtedness 6
Cfl&fcOLL & P€RDL€TOn, flSSOCIflT£S
CERTIFIED PUBLIC ACCOUNTANTS
W. T. CARROLL. C. R A.
D. L. PENDLETON, C. R A.
1756 ORANGE AVENUE
cos™ mesa cnufo&nifl 92527
AREA CODE 71*
646-4438
August 12, 1979
MEMBERS AMERICAN
INSTITUTE OF CERTIFIED
PUBLIC ACCOUNTANTS
MEMBERS CALIFORNIA
SOCIETY OF CERTIFIED
PUBLIC ACCOUNTANTS
Governing Board of Carlsbad
Building Authority
Carlsbad City Hall
(Xarlsbad, California 92008
Gentlemen:
We have examined the Combined Balance Sheets of all funds of the Carlsbad
Building Authority at June 30, 1979, 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, 1979, 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 Carls-
bad and is included in a package policy which is reviewed annually. The
authority is named in the liability policy, and boards and commission members
are included.
CARROLL & PENDLETON, ASSOCIATES
dma
-1-
COMBINED BALANCE SHEETS
June 30, 1979
ASSETS
Cash and investments with Trustee:
Commercial 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
Revenue bonds payable
Investment in building and improvements
Fund balances (deficit)
(Memorandum)
Combined
209
5,685
75,890
340,000
431.635
853.419
36,000
340,000
431,635
45.784
Reserve
Fund
20
1,415
19,085
20.520
-2-
Interest
Fund
Working
Capital
Fund
Revenue
Fund
Redemp-
tion
Fund
Fixed Assets
and Bonded
Indebtedness
39
607
19,193
10
836
38
2,114
18,419
102
713
19,193
846
340,000
431.635
846
36,000
(15.429)
20.571
340,000
431,635
-3-
STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCES
Year Ended June 30, 1979
Revenue:
Building lease income
Interest
Expenses:
Audit fees
Trustee's fees - nominal amount is
no longer accrued
Interest expense on bonded
indebtedness
Net revenue (excess of expenses)
Transfers in (out)
Bonds redeemed
Net Additions (Reductions) to
Fund Balances
Fund balances (deficit):
July 1, 1978
June 30, 1979
(Memorandum)
Combined
36,000
260
21 .000
21.260
19, 6M*
(20,000)
(356)
Reserve
Fund
(670)
Interest
Fund
1.15**
1.154
Working
Capital
Fund
-47
Revenue
Fund
36,000
1.245
37.245
Redemption
Fund
717
717
260
21.000
21.000
(19,846)
18,645
260
(213)630
37,245
(36,150)
717
19,286
(20.000)
(1,201)
21.0^0
417
429
846
1,095
20.005
20.008
-5-
BONDED INDEBTEDNESS
June 30, 1979
Annual
Maturity Date Payments Total
December 15, 1979/198*t 20,000 120,000
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 t5, and
are secured only by revenue 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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