HomeMy WebLinkAbout; ; 1995 FINANCIAL STATEMENTS; 1996-02-29PARKING AUTHORITY
OF THE CITY OF CARLSBAD
Financial Statements and Supplemental Data
July 1, 1995 to February 29, 1996
(With Independent Auditors' Report Thereon)
PARKING AUTHORITY OF THE CITY OF CARLSBAD
Financial Statements and Supplemental Data
July 1, 1995 to February 29, 1996
TABLE OF CONTENTS
Independent Auditors' Report 1
Financial Statements:
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types 2
Notes to Combined Financial Statements 3
Supplemental Data:
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Debt Service Funds 6
Schedule of Insurance Coverage 7
CONRAD CERTIFIED PUBLIC ACCOUNTANTS
SOCIATES, L.L.P
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS
1100 MAIN STREET, SUITE C
IRVINE, CALIFORNIA 92714
(714) 474-2020
The Board of Directors
Parking Authority of the City of Carlsbad
Carlsbad, California
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the Parking Authority of the City
of Carlsbad (the Authority), for the period from July 1, 1995 to February 29, 1996, as listed
in the accompanying table of contents. These financial statements are the responsibility of
the Authority's management. Our responsibility is to express an opinion on these 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 financial statements referred to above present fairly, in all material
respects, the financial position of the Parking Authority of the City of Carlsbad as of
February 29, 1996, and the results of its operations for the period from July 1, 1995 to
February 29, 1996 in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion of the 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 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
financial statements and, in our opinion, is fairly stated in all material respects in relation to
the financial statements taken as a whole.
March 14, 1996
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MEMBERS OF AICPA 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 Statement of Revenues, Expenditures and Changes in Fund Balances -
All Governmental Fund Types
July 1, 1995 to February 29, 1996
General
Revenues:
Lease payments $ -
Interest income 1.483
Total revenues 1.483
Expenditures:
Principal retirement
Principal redemption
Interest
Premium on redemption
Return of excess lease payment 56,705
Administrative 111
Total expenditures 57.482
Excess (deficiency) of
revenues over (under)
expenditures (55.999)
Other financing sources (uses):
Operating transfers in 442
Operating transfers out (37.396)
Total other financing
sources (uses) (36.954)
Excess (deficiency) of
revenues and other financing
sources over (under)
expenditures and other
financing uses (92,953)
Fund balances at beginning of year 92.953
Fund balances at end of year
Debt Service
1.727
1.727
125,000
4,000
129.000
(127.273)
106,518
(69.564)
36.954
(90,319)
90.319
Totals
(Memorandum Only)
3.210
3.210
125,000
4,000
56,705
111
186.482
(183.272)
106,960
(106.960)
(183,272)
183.272
See accompanying notes to combined financial statements.
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Notes to Combined Financial Statements
July 1, 1995 to February 29, 1996
(1) Organization and Summary 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 has financial accountability 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
Governmental fund types are accounted for on the flow of current financial
resources 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 governmental 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) 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 were 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.
(3) Revenue Bonds Payable and Disposition of Remaining Funds
In October 1995, all outstanding Series 1969 Revenue Bonds in the amount of $125,000
were retired. The Authority was in compliance with all significant debt covenants at
the time of retirement. Remaining Authority funds in the amount of $56,705
representing excess lease payments were distributed to the City in January 1996.
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SUPPLEMENTAL DATA
PARKING AUTHORITY OF THE CITY OF CARLSBAD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Debt Service Funds
July 1, 1995 to February 29, 1996
Bond Service Funds Reserve Funds
Series 1969 Series 1981 Series 1969 Series 1981 Totals
Revenues:
Lease payments
Interest income
Total revenues
Expenditures:
Principal retirement
Principal redemption
Interest
Premium on redemption
Return of excess lease payment
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing uses
Fund balances at beginning of year
Fund balances at end of year
$
275
275
125,000
4,000
-
129.000
(128.725)
1.452
1.452
.452
1.727
125,000
4,000
129.000
(127.273)
106,518
(112)
106.406
(22,319)
22.319
(69.452)
(69.452)
(68,000)
68.000
106,518
(69.564)
36,954
(90,319)
90.319
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PARKING AUTHORITY OF THE CITY OF CARLSBAD
Schedule of Insurance Coverage
As of February 29, 1996
Insurance coverage maintained by the City of Carlsbad with the Authority listed as
additional insured at February 29, 1996 includes:
Type of Coverage
All risk including rental income
Mobile equipment
Honesty Blanket Bond
Valuable papers
Service interruption
Amount of Coverage Term
$500,000,000 05/15/95 to 05/15/96
5,000,000 05/15/95 to 05/15/96
1,500,000 04/16/95 to 04/16/96
10,000,000 05/15/95 to 05/15/96
5,000,000 05/15/95 to 05/15/96
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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