HomeMy WebLinkAbout; ; 1980 Building Authority Financial Statements; 1980-06-30CARLSBAD BUILDING AUTHORITY
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1980
DIEHL, EVANS AND COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
12O WOODWARD AVENUE
ESCONDIDO. CALIFORNIA
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CARLSBAD BUILDING AUTHORITY
FINANCIAL STATEMENTS
WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS
June 30, 1980
CARLSBAD BUILDING AUTHORITY
June 30, 1980
TABLE OF CONTENTS
Page
• ' Number
Accountants' Report 1
Combined Balance Sheet - All Funds 2
Statement of Operations and Changes 3
in Fund Balances
Notes to Financial Statements 4-5
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DIEHL, EVANS AND COMPANY
A OARTNEPSH s OP ACCOUNTANCY COSPOSAT C •-5
CERTIFIED PUBLIC ACCOUNTANTS
2O WEST WOODWARD AVENUE
ESCONDIDO, CALIFORNIA 92OS5
(714) 741-3141
August 20, 1980
= 955 »OOSE:VE;_T STREET
CARLSBAD, CALIFORNIA
9 - N0=!^'- 3^5^ STC!EET
SANTA ANA. CALIFORNIA
ACCOUNTANTS' REPORT
Governing Board of Carlsbad
Building Authority
Carlsbad, California
We have examined the combined balance sheet - all funds of
the Carlsbad Building Authority at June 30, 1980, and the related
statement of operations and changes in fund balances for the
fiscal year then ended. Our examination was made in accordance
with generally accepted auditing standards and accordingly included
such tests of the accounting records and such other auditing pro-
cedures 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, 1980, and the
results of operations of such funds for the fiscal year then ended,
in conformity with generally accepted accounting principles, applied
on a basis consistent with that of the preceding year except for the
change, with which we concur, to the financing method of accounting
for long term leases as described in Note 1 to the financal statements,
C^j-eju^^L-/ 3
CARLSBAD BUILDING AUTHORITY
COMBINED BALANCE SHEET - ALL FUNDS
June 30, 1980
ASSETS :
Cash and investments with Trustee:
Commercial accounts
Savings accounts
Treasury bills - at cost
Future basic lease payments to-be
received (Note 4)
Less: Unearned finance charges
TOTAL ASSETS
(Memorandum)
Combined
$ 36,119
10,563
38,604
432,000
(112.000)
$ 405.2R6
Reserve
Fund
$ 24
2,430
19,302
Interest
Fund
$ 15
1,479
$ 21.756 $ 1.494
Working
Capital
Fund
$ 18
1,349
$ 1.367
Revenue
Fund
$ 36,051
4,456
19,302
Redemption
Fund
$ 11
849
Lease Payments
Receivableand Bonded
Indebtedness
$ 59.809
432,000
(112.000)
$ 320^000
LIABILITIES AND FUND BALANCES :
Advance rent received
Revenue bonds payable (Note 6)
Fund balances
TOTAL LIABILITIES
AND FUND BALANCES
$ 36,000
320,000
49,286
$ 405.286
21,756
$ 21.756
1,494
$ 1.494
1,367
$ 1.367
$ 36,000
23,809
$ 59.809
860
$ 860
320,000
$ 320.nnn
See accompanying accountants' report and notes to financial statements,
CARLSBAD BUILDING AUTHORITY
STATEMENT OF OPERATIONS AND CHANGES IN FUND BALANCES
For the year ended June 30, 1980
REVENUE :
Lease payments, financing
charges earned
Interest
EXPENSES:
Audit fees
Trustee's fees and legal
advertising
Interest expense on bonded
indebtedness . •
EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENSES
TRANSFERS FROM (TO) OTHER FUNDS
BONDS REDEEMED
LEASE PAYMENTS, PRINCIPAL
FUND BALANCES (DEFICIT):
July 1, 1979
June 30, 1980
(Memorandum)
Combined
$ 19,800
8,221
28,021
285
634
19,800
20,719
7,302
(20,000)
16,200
45,784
$ 49.286
Reserve
Fund
2,190
2,190
2,190
(954)
20,520
$ 21.756
Interest
Fund
1,455
1,455
19,800
19,800
(18,345)
19,839
$ 1.494
Working
Capital
Fund
65
65
285
634
919
(854)
1,375
846
$ 1.367
Revenue
Fund
$ 19,800
3,659
23,459
23,459
• (421)
16,200
(15,429)
Redemption
Fund
852
852
852
(20,000)
20,008
$ 860
See accompanying accountants' report and notes to financial statements,
CARLSBAD BUILDING AUTHORITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1980
1. SIGNIFICANT ACCOUNTING POLICIES:
a) The accompanying financial statements have been prepared
on the financing method of accounting whereby the long-
term lease has been treated as a sale of the facilities
to the City and the lease payments receivable represent
the selling price. Finance charges included in the lease
payments are taken into income each year as earned on a
a declining balance method over the life of the lease.
This method has the effect of recording income in an
amount that equals bond interest expense each year.
b) Investments are stated at cost, which approximates
market value.
2. 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.
3. 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.
4. 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.
5. 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 is named in the liability
policy, and boards and commission members are included.
See accompanying accountants' report.
CARLSBAD BUILDING AUTHORITY
^ NOTES TO FINANCIAL STATEMENTS
%^ (Continued)
June 30, 1980
6. The revenue bonds payable as of June 30, 1980 are due and
payable as follows:
Annual
Maturity Date Payments Total
December 15, 1980-1984 $ 20,000 $ 100,000
December 15, 1985-1989 25,000 125,000
December 15, 1990-1991 30,000 60,000
December 15, 1992 35,000 35,000
Total $ 320.000
All bonds bear interest at 6% per annum payable June 15 and
December 15, and are secured only by revenue of the Authority.
Bonds maturing on or after December 15, 1979 are subject to
*t. call and redemption prior to maturity as set forth in the
'.. * resolution.
See accompanying accountants' report.