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HomeMy WebLinkAbout; ; 1993 Parking Authority Audit Report; 1993-06-30PARKING AUTHORITY OF THE CITY OF CARLSBAD Combined Financial Statements Year Ended June 30, 1993 (With Independent Auditor's Report Thereon) PARKING AUTHORITY OF THE CITY OF CARLSBAD Combined Financial Statements Year Ended June 30, 1993 TABLE OF CONTENTS Page Independent Auditors' Report 1 Combined Balance Sheet - All Governmental Fund Types and Account Group 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 3 Notes to Combined Financial Statements 4 Supplementary Statements and Schedule: Combining Balance Sheet - Debt Service Funds 10 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds 11 Schedule of Insurance Coverage 12 CONRAD CERTIFIED PUBLIC ACCOUNTANTS OO/^/^I Anmr noo MAIN STREET, SUITE c ^)^5V_yV_>l/\l JZL^^ IRVINE, CALIFORNIA 92714 A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 474-2020 The Board of Directors Parking Authority of the City of Carlsbad Carlsbad, California Independent Auditors' Report We have audited the accompanying component unit financial statements of the Parking Authority of the City of Carlsbad (the Authority), as of and for the year ended June 30, 1993, as listed in the accompanying table of contents. These component unit financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on these component unit financial statements 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 statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. 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 statements referred to above present fairly, in all material respects, the financial position of the Parking Authority of the City of CarlslDad as of June 30, 1993, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion of the component unit financial statements taken as a whole. The combining financial statements and schedule listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the component unit financial statements of the Parking Authority of the City of Carlsbad. Such information has been subjected to the auditing procedures applied in the audit of the component unit financial statements and, in our opinion, is fairly stated in all material respects in relation to the component unit financial statements taken as a whole. September 3, 1993 -1- MEMBERS OF AlCPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION PARKING AUTHORITY OF THE CITY OF CARLSBAD Combined Balance Sheet All Governmental Fund Types and Account Group June 30, 1993 Assets and Other Debits Cash and investments (note 2) Net investment in direct financing leases (note 3) Accrued interest receivable Due from other funds (note 5) Amount available in debt service funds Amount to be provided for retirement of general long-term debt Governmental Fund Types General $2,084 916 Debt Service 586,854 677,747 11,315 14,558 Accoimt Group General Long-term Debt 597,253 677.747 Total assets and other debits $3.00Q 1.2?Q.474 1-275.000 Totals (Memorandum Onlv) 588,938 677,747 11,315 15,474 597,253 677.747 2--'i68-474 Liabilities and Fund Balances Liabilities: Due to other funds (note 5) Deferred revenue Revenue bonds payable (note 4) Total liabilities Fund balances: Reserved for debt service Unreserved - undesignated Total fund balances Total liabilities and fund balances $ - 3.000 3.000 15,474 677,747 693.221 597,253 597.253 1.275.000 1.275.000 $3.000 1.290.474 1.275.000 15,474 677,747 1.275.000 1.968.221 597,253 3.000 600.253 2.568.474 See accompanying notes to combined financial statements. -2- PARKING AUTHORITY OF THE CITY OF CARLSBAD Combined Statement of Revenues, Expenditures and Changes in Fimd Balances - All Governmental Fund Types Year Ended June 30, 1993 Revenues: Lease payments Interest income Total revenues General $ - Debt Service 130,500 41.793 172.293 Totals (Memorandum Only) 130,500 41.793 172.293 Expenditures: Principal retirement Interest Administrative 2.799 Total expenditures 2.799 Excess (deficiency) of revenues over (under) expenditures (2.799) Other financing sources (uses): Operating transfers in 2,799 Operating transfers out - Total other financing sources (uses) 2.799 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses Fund balances at beginning of year 3.000 Fund balances at end of year $3.000 175,000 105,600 280.600 (108.307) 18,074 (20.873) (2.799) (111,106) 708.359 597.2.53 175,000 105,600 2.799 283.399 (111,106) 20,873 (20.873) (111,106) 711.359 600.2.53 See accompanying notes to combined financial statements. -3- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements Year Ended June 30, 1993 ID Organization and Summarv of Significant Accounting Policies The Parking Authority of the City of Carlsbad (the Authority) was created pursuant to the Parking Law of 1949 and was authorized by the City Council on April 19, 1966 for the purpose of providing and expanding public parking facilities for the City of Carlsbad (the City). A five-member commission appointed by the City Council governs the Authority. The Authority is not subject to federal or state income taxes. The Authority is an integral part of the reporting entity of 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 and an account group, each of which is considered to be a separate accounting entity. The operations of each fund and account group 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 and the account group are summarized by type in the financial statements. Fund types and the account group 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: 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. -4- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements (Continued) (1) Organization and Summary of Significant Accounting Policies. (Continued) (a) Basis of Presentation. (Continued) GENERAL LONG-TERM DEBT ACCOUNT GROUP This account group is used to establish accounting control and accountability for the Authority's general long-term debt. It is used to account for all long-term obligations of the Authority. (b) Measurement Focus and Basis for Accounting Govemmental fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities generally are included on their balance sheets, and the reported fund balance provides an indication of available, spendable resources. Operating statements for govemmental fund types report increases (revenues) and decreases (expenditures) in 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. (d) Investments Investments are stated at cost or amortized cost which approximates market value. (e) Total Columns Total columns on the combined statements are captioned "Totals (Memorandum Only)" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, 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. -5- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements (Continued) (2) Cash and Investments Cash and investments held by the Authority at June 30, 1993 consisted of the following: Deposits $ 2,084 Investments 586.854 $588.938 The Authority's investment policy and state statutes authorize the Authority to invest in obligations of the U.S. Treasury, its agencies and instrumentalities, commercial paper rated A-l by Standard and Poor's Corporation or P-1 by Moody's Commercial Paper, banker's acceptances with a maximum maturity of 270 days, repurchase and reverse repurchase agreements, certificates of deposit with national and state licensed or chartered banks or federal or state savings and loan associations, money market and mutual funds whose portfolios consist of one or more of the foregoing investments, San Diego County investment pool and the State Treasurer's investment pool. Under the California Govemment Code, a financial institution is required to secure deposits made by state or local governmental units by pledging securities held in the form of an undivided collateral pool. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. As of June 30, 1993, all of the Authority's deposits were classified as category 1. The bank balance equals the carrying amount. Classification of Investment by Credit Risk As defined in Governmental Accounting Standards Board Statement No. 3, investments in securities are categorized in the following manner: Category 1 - Investments that are insured or registered, which are held by the Authority or its agent in the Authority's name. Category 2 - Uninsured and unregistered investments, for which the securities are held by the counterparty's trust department or agent in the Authority's name. Category 3 - Uninsured and unregistered investments, for which the securities are held by the counterparty or by its trust department or agent, but not in the Authority's name. -6- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements (Continued) (2) Cash and Investments. (Continued) Categorv Carrying Market Tvpe of Investment 1 2 3 Amount Value U.S. Treasury notes and bills $ - 309,346 - 309,346 313,000 Government agency obligations - 151.406 _= 151.406 150.000 $ - 460.752 460,752 463,000 Investment in mutual funds - Pacific Horizons 126.102 126.102 Total investments $586.8.54 589.102 (3) Lease Agreements Leases have been executed between the Authority and the City under which the City agreed to make annual payments of $138,000 and $174,000 for the lease of a parking facility and its subsequent expansion, respectively. The leases have been recorded by the Authority as direct financing leases. Lease payments are due quarterly and terminate on the date of retirement of the related revenue bonds. Under the terms of the lease agreements and the bond resolutions. Debt Service Funds in excess of the next interest and principal payments may be used as follows: First, to maintain a reserve of $68,000 and $156,000, respectively, for the 1969 and the 1981 Bonds. Next, to pay the General Fund for any expenses of the Authority and to maintain the fund balance at $3,000, and then as credits to the City for rentals due under the leases. Due to the excess monies in the 1969 Bond Service Fund during the fiscal year ending June 30, 1993, no lease payments were required from the City under the parking facility lease. A lease payment of $130,500 was required during the fiscal year ending June 30, 1993 from the City under the expansion lease to cover debt service payments during the year for the 1981 bond issue. (4) Revenue Bonds Payable The following is a summary of changes in revenue bonds payable for the year ended June 30, 1993: -7- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements (Continued) (4) Revenue Bonds Payable. (Continued) Series 1969 Series 1981 Totals Revenue bonds payable June 30, 1992 $450,000 1,000,000 1,450,000 Bonds retired 100.000 75.000 175.000 Revenue bonds payable, June 30, 1993 $3.50.000 925.000 1.275.000 Revenue bonds payable at June 30, 1993 were comprised of the following individual issues: 1969 Parking Revenue Bonds: 1969 Carlsbad Parking Authority Revenue Bonds, remaining principal due in amounts ranging from $100,000 to $125,000 on October 1 of each year through 1995, interest payable on October 1 and April 1 at 6.4% per annum. The bonds are subject to call in whole or in part at the option of the Authority at prices ranging from 100.5% to 105% of the principal amoimt of the bonds. 1981 Parking Revenue Bonds: 1981 Carlsbad Parking Authority Revenue Bonds, remaining principal due in amounts ranging from $75,000 to $150,000 on February 1 of each year through 2001, interest payable on August 1 and February 1 at 8.0% per annum. Bonds maturing on or after February 1, 1991 are subject to call in whole or in part at the option of the Authority at prices ranging from 100.25% to 102% of the principal amount of the bonds. Debt service requirements to maturity for the revenue bonds payable are as follows: Year Ending June 30. Series 1969 Series 1981 Totals 1994 $119,200 174,000 293,200 1995 137,000 166,000 303,000 1996 129,000 158,000 287,000 1997 -150,000 150,000 1988-)^'? <r -167,000 167,000 Thereafter -466.000 466.000 385,200 1,281,000 1,666,200 Less amounts representing interest 35.200 356.000 391.200 Total revenue bonds payable $.3.50.000 925.000 1.275.000 -8- PARKING AUTHORITY OF THE CITY OF CARLSBAD Notes to Combined Financial Statements (Continued) M) Revenue Bonds Pavable. (Continued) At June 30, 1993, the Authority was in compliance with all significant debt covenants. (5) Due To and From Other Funds The following table shows amounts due from funds within the Authority to other funds within the Authority at June 30, 1993: Due To: General Fund Bond Service Funds Series 1969 Series 1981 Due from: Bond Service Funds: Series 1969 $ 24 Series 1981 892 Reserve Funds: Series 1969 - 2,060 Series 1981 _^ - 12.498 Total 2.060 12.498 -9- SUPPLEMENTARY STATEMENTS AND SCHEDULE PARKING AUTHORITY OF THE CITY OF CARLSBAD Combining Balance Sheet Debt Service Funds June 30, 1993 Bond Service Funds Reserve Funds Assets Series 1969 Series 1981 Series 1969 Series 1981 Totals Investments Net investment in direct financing lease Accrued interest receivable Due from other funds $246,344 29,372 4,247 2.060 108.752 648.375 268 12.498 68.009 2.051 163.749 4.749 586.854 677.747 11.315 14.558 Total assets $282.023 769.893 70.060 168.498 1.290.474 Liabilities and Fund Balances Liabilities: Due to other funds Deferred revenue $ 24 29.372 892 648.375 2.060 12.498 15.474 677.747 Total liabilities 29.396 W,2$7 2 MO 12.498 693.221 Fund balances - reserved for debt service 252.627 120.626 68.000 156.000 597.253 Total liabilities and fund balances S282.023 769.893 70.060 168.49S 1.290.474 -10- PARKING AUFHORITY OF THE CITY OF CARLSBAD Combining Statement of Revenue. Expenditures and Changes in Fund Balance Debt Service Funds Year Ended June 30, 1993 Bond Service Funds Reserve Funds Series 1969 Series 1981 Series 1969 Series 1981 Totals Revenues: Lease payments Interest income 20.195 130.500 3.524 5.628 12.446 130.500 41.793 Total revenues 20.195 134,024 5.628 12,446 172.293 Expenditures: Principal retirement Interest 100,000 25.600 75,000 80.000 --175.000 105.600 Total expenditures 125. W 155.000 280.600 Excess (deficiency) of revenues over (imder) expenditures a05.405» (20.976) 5.628 12.446 (108.3071 Other financing sources (uses): Operating transfers in Operating transfers out 5.628 (510) 12.446 f1.9891 (5.628) fl2.4461 18.074 (20.573) Total other financing sources (uses) 4,81? 10.457 (5,628) ri2.446) (2.799) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (100.587) (10.519) (111.106) Fund balances at beginning of year 353.214 131.145 68.000 156.000 708.359 Fund balances at end of year ^=252.627 120.626 68.000 156.000 597.2^3 -11- PARKING AUTHORITY OF THE CITY OF CARLSBAD Schedule of Insurance Coverage Year Ended June 30, 1993 Insurance coverage maintained by the City of Carlsbad with the Authority listed as additional insured at June 30, 1993 includes: Tvpe of Coverage All risk including valuable papers and rental income Equipment floater Honesty Blanket Bond Amount of Coverage $37,973,804 517,410 1.500,000 Term 10/01/92 to 10/01/93 10/01/92 to 10/01/93 04/16/93 to 04/16/94 Effective January 1, 1986, the Authority has not been covered under a liability insurance policy but has been included under the City of Carlsbad's self-insurance program. -12-