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HomeMy WebLinkAbout; ; 1979 Building Authority Audit Report; 1979-06-30c. 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. -6-