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Home My WebLink About; ; 1981 Building Authority Financial Statements; 1981-06-30CARLSBAD BUILDING AUTHORITY FINANCIAL STATEMENTS WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS June 30, 1981 DIEHL, EVANS AND COMPANY CERTIFIED PUBLIC ACCOUNTANTS 12O WOODWARD AVENUE ESCONDIDO, CALIFORNIA CARLSBAD BUILDING AUTHORITY FINANCIAL STATEMENTS WITH REPORT ON EXAMINATION BY CERTIFIED PUBLIC ACCOUNTANTS June 30, 1981 € CARLSBAD BUILDING AUTHORITY June 30, 1981 Table of Contents Page Number Accountants' Report 1 Combined Balance Sheet - All Funds 2 Statement of Operations and Changes in Fund Balances 3 Notes to Financial Statements 4-5 c ELL'S C. DiE"-t^. C.P.A, (i92S iQ BR^K; 3. EVANS. C.PA, PH!:.iP M. MQLTKAMR C PA. W'N G. ^L^EPS. C.P.A. DO\"_D H. PETERSON. C.P.A. DOS^D E CA;_LAHAV C PA, L. PE'ER V.IHERER, C PA RCD\E> •-,. "V OAN:E^ C.P.A. p,ALP>- M. WLi'-TRAjB. C.P.A. DIEHL, EVANS AND COMPANY A PARTNERSHIP OF ACCCJNTAMV CORDO»ATiQ\ ^ CERTIFIED PUBLIC ACCOUNTANTS i 2 O WEST WOODWAPD AvENLJE ESCONDIDO, CALIFORNIA 92O25 August 13, 1981 C^WER o<^ ~ E: s A - CARLSBAD, CALIFORNIA 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, 1981, 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, accord- ingly, 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, 1981, and the results of operations of such funds for the fiscal year then ended, in conformity with generally ac- cepted accounting principles, applied on a basis consistent with that of the preceding year. c. "ft CARLSBAD BUILDING AUTHORITY COMBINED BALANCE SHEET - ALL FUNDS June 30, 1981 ASSETS: Cash and investments with trustee: Commercial accounts Treasury bills - at cost Future basic lease payments to be received (Note 4) Less: Unearned finance charges TOTAL ASSETS (Memorandum) Combined $ 10,081 79,181 396,000 (96.000) Reserve Fund $ 1,943 18,584 Interest Fund $ 3,387 14,023 Working Capital Fund $ 825 $ 825 Revenue Fund $ 2,613 27,877 Redemption Fund $ 1,313 18,697 Lease Payments Receivable and Bonded Indebtedness $ 396,000 (96,000 LIABILITIES AND FUND BALANCES (DEFICIT): Advance rent received Revenue bonds payable (Note 6) Fund balances (deficit) TOTAL LIABILITIES AND FUND BALANCES (DEFICIT) $ 36,000 300,000 53,262 $ 20,527 $ 17,410 $ 36,000 (5.510)$ 20.010 $ 300,000 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, 1981 REVENUE: Lease payments, financing charges earned Interest Total Revenue EXPENSES: Audit fees Trustee's fees Interest expense on bonded indebtedness Total Expenses EXCESS .(DEFICIENCY) OF REVENUE OVER EXPENSES TRANSFER FROM (TO) OTHER FUNDS BONDS REDEEMED LEASE PAYMENTS, PRINCIPAL FUND BALANCES (DEFICIT): July 1, 1980 July 1, 1981 Memorandum) Combined $ 18,600 7,310 25,910 285 449 18,600 19,334 6,576 (20,000) 17,400 49,286 Working Reserve Interest Capital Fund Fund Fund $ 2,341 $ 1,366 $ 59 2,341 1,366 59 285 449 18,600 18,600 734 2,341 (17,234) (675) (3,570) 33,150 133 21,756 1,494 1,367 Revenue Redemption Fund Fund $ 18,600 2.866 $ 678 21,466 678 21,466 678 (68,185) 38,472 (20,000) 17,400 23,809 860 $53.262 $20.527 $17.410 $ 825 $f5.510) $20.010 See accompanying accountants' report and notes to financial statements, CARLSBAD BUILDING AUTHORITY NOTES TO FINANCIAL STATEMENTS June 30, 1981 1. SUMMARY OF 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 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. 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 is named in the liability policy, and boards and commis- sion members are included. Rental. income insurance is required and is under consideration, but coverage has not yet been obtained. See accompanying accountants' report. CARLSBAD BUILDING AUTHORITY NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1981 6. The revenue bonds payable as of June 30, 1981 are due and payable as follows: Annua1 Maturity Date Payments Total December 15, 1981 - 1984 $ 20,000 $ 80,000 December 15, 1985 - 1989 25,000 125,000 December 15, 1990 - 1991 30,000 60,000 December 15, 1992 35,000 35,000 Total 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, 1981 are subject to call and redemption prior to maturity as set forth in the resolution. See accompanying accountants' report.