HomeMy WebLinkAbout; ; 1993 Building Authority Financial Statements; 1993-06-30KPMG Peat Marwick
Certified Public Accountants
BUILDING AUTHORITY OF THE
CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures
and Changes in Fund Balance
January 31, 1993
(With Independent Auditors' Report Thereon)
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Table of Contents
January 31, 1993
Page
Independent Auditors' Report 1
Combined Statement of Revenues, Expenditures and Changes
in Fund Balance - All Governmental Fund Types 2
Notes to Combined Financial Statement 3-5
Supplementary Information - Combining Statement of Revenues,
Expenditures and Changes in Fund Balance - Debt Service Funds 6
Peat Marwick
Certified Public Accountants
750 B Street
San Diego, CA 92101
Independent Auditors' Report
The Board of Directors
Building Authority of the City of Carlsbad, California:
We have audited the accompanying component unit combined statement of
revenues, expenditures and changes in fund balance - all governmental fund
types of the Building Authority of the City of Carlsbad (the Authority) for
the seven-month period ended January 31, 1993. This component unit financial
statement is the responsibility of the Authority's management. Our
responsibility is to express an opinion on the component unit financial
statement based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statement is free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statement. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the component unit financial statement referred to above
presents fairly, in all material respects, the results of the Building
Authority of the City of Carlsbad's operations for the seven-month period
ended January 31, 1993 in conformity with generally accepted accounting
principles.
The Authority intends to cease operations as discussed in Note 3 to the
financial statement.
Our audit was made for the purpose of forming an opinion on the component unit
financial statement taken as a whole. The combining financial statement
listed in the accompanying table of contents is presented for purposes of
additional analysis and is not a required part of the component unit financial
statement of the Building Authority of the City of Carlsbad. Such information
has been subjected to the auditing procedures applied in the audit of the
component unit financial statement and, in our opinion, is fairly stated in
all material respects in relation to the component unit financial statement
taken as a whole.
1993
Member Firm of
Klynveld Peat Marwick Goerdeler
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Combined Statement of Revenues, Expenditures
and Changes in Fund Balance
All Governmental Fund Types
For the seven-month period ended January 31, 1993
Revenue - interest on investments !|
Expenditures:
Principal retirement
Interest
Administrative expenses
Distribution to City of Carlsbad
(note 3)
Total expenditures
Excess of expenditures
over revenues
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing
sources (uses)
Excess of expenditures and
other financing uses over
revenues and other financing
sources
Fund balance at July 1, 1992
Fund balance at January 31, 1993 !|
General
1.497
4,870
54.168
59.038
Debt
Service
322
35,000
1,050
20.378
56.428
Totals
(Memorandum
Only)
1.819
35,000
1,050
4,870
74.546
115.466
(57.541) (56.106) (113.647)
(36.050)
(36.050)
36,050
36.050
36,050
(36.050)
(93,591) (20,056) (113,647)
93.591 20.056 113.647
See accompanying notes to combined financial statement.
2
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statement
January 31, 1993
(1) Organization and Summary of Significant Accounting Policies
The Building Authority of the City of Carlsbad (the Authority) was
organized on October 1, 1967 under a joint exercise of powers agreement
between the City of Carlsbad and the County of San Diego (the
"Agreement") for the purpose of financing and constructing a civic
center building for lease to the City of Carlsbad. In accordance with
the Agreement, any excess of revenues over expenditures or net assets
of the Authority remaining after providing for all debts and
obligations of the Authority are distributable upon dissolution to the
City of Carlsbad (Note 3). The Authority is not subject to federal or
state income taxes.
The Authority is an integral part of the reporting entity of the City of
Carlsbad (the City). The accounts of the Authority have been included
within the scope of the general purpose financial statements of the
City because the City Council exercises oversight responsibility over
the operations of the Authority. Only the accounts of the Authority
are included herein; therefore, these financial statements do not
purport to represent the financial position or results of operations of
the City of Carlsbad.
The accounting policies of the Authority conform to generally accepted
accounting principles as applicable to governmental units. The
following is a summary of the more significant policies:
(a) Basis of Presentation:
The accounts of the Authority are organized on the basis of funds,
each of which is considered to be a separate accounting entity.
The operations of each fund are accounted for by providing a
separate set of self-balancing accounts that comprise its assets,
liabilities, fund balance, revenues and expenditures. The various
funds are summarized by type in the accompanying component unit
financial statement. The fund types used by the Authority are as
follows:
GOVERNMENTAL FUND TYPES;
Governmental funds are used to account for the Authority's expendable
financial resources and related liabilities. The measurement focus
is upon determination of changes in financial position. The
following are the Authority's governmental fund types:
(Continued)
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statement, Continued
(1) Organization and Summary of Significant Accounting Policies. Continued
(a) Basis of Presentation. Continued;
GOVERNMENTAL FUND TYPES. Continued!
General Fund
The general fund is the general operating fund of the Authority.
It is used to account for all financial resources except those
required to be accounted for in another fund.
Debt Service Funds
Debt service funds are used to account for the accumulation of
resources for, and payment of, general long-term debt principal,
interest and related costs.
(b) Measurement Focus and Basis of Accounting;
Governmental fund types are accounted for on a "spending" measurement
focus. The accompanying component unit financial statement reports
increases (revenues) and decreases (expenditures) in available,
spendable resources and the reported fund balance provides an
indication of available, spendable resources.
Governmental fund types use the modified accrual basis of
accounting. Revenues are recognized when susceptible to accrual
(i.e., both measurable and available). Available means collectible
within the current period or soon enough thereafter to be used to
pay liabilities of the current period. Revenues that are accrued
include interest income.
Governmental fund expenditures are recognized when the liability is
incurred, except for principal and interest on long-term debt,
which is recognized when due.
(c) Budgets;
The Authority does not adopt an annual budget; thus, no budgetary
comparisons are presented.
(Continued)
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
9 Notes to Combined Financial Statement, Continued
(1) Organization and Summary of Significant Accounting Policies. Continued
(d) Total Column;
t
Total column on the combined statement is captioned "Totals
(Memorandum Only)" to indicate that it is presented only to
facilitate financial analysis. Data in this column does not
present results of operations or changes in fund balance in
conformity with generally accepted accounting principles. Such
§ data is not comparable to a consolidation. Interfund eliminations
have not been made in the aggregation of this data.
(2) Revenue Bonds Payable
The Authority issued the 1967 Carlsbad Building Authority Revenue Bonds
<§ in an original amount of $460,000 with interest payable at 6.0% per
annum. The bonds were issued under -a trust indenture with Banker's
Trust Company of California as Trustee.
The following is a summary of changes in revenue bonds payable for the
seven-month period ended January 31, 1993.
t
Revenue bonds payable as of June 30, 1992 $ 35,000
Bonds retired (35,000)
Revenue bonds payable as of January 31, 1993 $ -
•(3) Dissolution of the Authority
The Authority distributed $74,546 to the City of Carlsbad, which
represents the cash that remained after the revenue bonds were paid.
• In accordance with the Agreement, the Authority is required to quit claim
the Civic Center property to the City as a result of the bonds
maturing. Upon acceptance and approval of the accompanying component
unit financial statement, the Authority expects to approve the quit
claim deed to the City of Carlsbad.
BUILDING AUTHORITY OF THE CITY OF CARLSBAD
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance - Debt Service Funds
For the seven-month period ended January 31, 1993
Principal
Interest Retirement Reserve Totals
Revenue - interest on investments $ - - 322 322
Expenditures:
Principal retirement - 35,000 - 35,000
Interest 1,050 - - 1,050
Distribution to City of Carlsbad - - 20.378 20.378
Total expenditures 1,050 35fOOP 20.378 56,428
Excess of expenditures
over revenues (1.050) (35.000) (20.056) (56.106)
Other financing sources -
operating transfers in 1.050 35.000 - 36.050
Excess of expenditures
over revenues and other
financing sources - - (20,056) (20,056)
Fund balance at July 1, 1992 - - 20.056 20.056
Fund balance at January 31, 1993 $ -
See accompanying independent auditors' report.
6