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
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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.
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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.
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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.
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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.
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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.
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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:
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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
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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
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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
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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
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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.
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