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Home My WebLink About; ; 1978 Joint Powers Sewerage System AUDIT REPORT; 1978-06-30t E E E I I E E E I I I E E I E E E • Carlsbad, Vista, et al Joint Sewerage System AUDIT REPORT June 30, 1978 CARROLL & PEnDLETOn, ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS --.. ---------------- I ------------------- Carlsbad, Vista, et al Joint Sewerage System AUDIT REPORT June 30, 1978 ----------- -------' .. ------------------ Accountants' Report Joint Sewerage System INDEX TD STATEMENTS June 3D, 1978 Exhibit A -Summary of Total Costs and Revenues and Participants' Status Exhibit B -Allocation of Operating Costs and Expenses Schedule B-1 -Sewage Flow Allocation Exhibit C -Ownership of Various Units Exhibit D -Cash in Vista Trust Accounts Page Number 1-2 3 4-5 6 7-8 9 -.. - -CfllUl.OLL & PfnDLfTOn, f\SSOClf\TfS -------.. ------- I ------------------- CERTIFIED PUBLIC ACCOUNTANTS W. T. CARROLL, C. P. A. 0. L PENDLETON, C. R A. November 17, 1978 Joint Advisory Committee Carlsbad, Vista, et al Joint Sewer City Ha 11 Carlsbad, California 92008 Gentlemen: 1756 ORANGE AVENUE COSTA ffiBA CALlfOll0IA 92627 AREA CODE 714 646·4428 MEMBERS AMERICAN INSTITUTE: OF CERTIFIED PUBLIC ACCOUNTANTS MEMBERS CALIFORNIA SOCIETY OF' CERTIFIED PUBLIC ACCOUNTANTS We have audited the records of the Administrator (the City of Carlsbad) and made analyses of the books of San Diego County for the fiscal year ended June 30, 1978 and examined contract accounting schedules of receipts and payments (which were audited by Arthur Young & Co.) made through the trust account of Vista Sanitation District for phase Ill planning costs -step 1. Exhibit A indicates the amounts due to the participants at June 30, 1978 with the balancing factor due from Carlsbad, since all funds are cleared through this entity as Administrator. The Administrator's records are kept on the modified accrual basis of account- ing which in general recognizes obligations as incurred and revenues when received or "susceptible to accrual", if substantial. Encumbrances outstand- ing at June 30, 1978 for capital improvements and design and consulting totaled $74,605. These obligations were not included in this accounting as the Joint Powers is basically a cash accounting although certain non-cash items have been included for a fair presentation such as San Diego County billings for the fourth quarter of 1977-78 operations which were paid in July in the amount of $111,969. Billings by the Administrator to the part- icipants in July 1978 for the fourth quarter expenses were also included. With respect to the accounting system, we recommend that the various expenditures be classified by object such as legal and audit, office expense, etc. At present, virtually all expenditures are lumped into one account which is part of the sanitation department of the City of Carlsbad. A restatement of the principles of expense allocation should be made by minute or resolution action to conform to current allocations per the budget which is at variance with the original agreement as to administrative costs such as custodial service~ legal and audit, directors fees, etc. -1- -.. ---.. ------------- f --------.. ---------- Carlsbad, Vista, et al Joint Sewer November 17, 1978 In our op1n1on, the statements listed in the index consisting of Exhibits A through D, present fairly the operations for the fiscal year ended June 30, 1978 and the amounts due to or from the participants and the ownership costs and trust balances at June 30, 1978 applied on a basis consistent with that, of the preceding year. Very truly yours, CARROLL & PENDLETON,ASSOCIATES kkk -2- ---.. -------• ------- ' -------- Vista Sanitation District City of Carlsbad Suena Sanitation District San Marcos County Water District Leucadia County Water District Encinitas Sanitary District Totals SUMMARY OF TOTAL COSTS AND REVENUES AND PARTICIPANTS' STATUS Year Ended June 30, 1978 Due to (from) (Exhibit 8) i,Part i c i pants' Participants Total Payments & June 30, 1977 Costs Billings 27,811 193,355 239,039 (102,888) 135,659 110,015 7,281 19,797 17,719 27,786 91,020 85,214 25,040 67,851 60,960 14,970 22,365 17' 1 00 530,047 530, o47 Exhibit A Due to (from) Participants June 30, 1978 73,495 (128,532) 5,203 21,980 18,149 9,705 Comments attached are an integral part of these statements. • ,',This includes bi 11 ing for the third and fourth quarters of 1977-78 made in July 1978, except for Encinitas who was overpaid. --------.. --3- ---.. -.. -San -Vista Carlsbad Buena Marcos Leucadia Encinitas -.. 2,909 2,508 ""' .. 46,742 2,720 --19,823 17,092 --95,031 81,968 15,022 66,620 51,924 16,002 --2,102 1,813 332 1,475 1,149 354 3, 195 2,706 489 1,892 1,774 788 -4,545 3,850 696 2,692 2,524 1,122 -917 7,329 4,294 69 2,139 236 140 -411 260 80 -(3,644) {3,143) (2Z6) (2,554) (1,221) (614) ,Zl 1 620 11z,254 12,263 z6,558 55,245 1z,8z2 --605 604 604 604 6o4 604 -3, 122 2,644 478 1,849 1,734 770 2,542' 1,824 309 1,218 1 , 112 477 11111 474 401 73 281 263 117 314 271 50 220 172 53 -13,412 11,569 2, 120 9,403 7,329 2,259 -1 266 1 I 022 200 s8z 692 213 21 ,Z35 18,405 3,834 14,462 11 , 206 4,423 --193,355 135,659 19,797 91,020 67,851 22,365 ------' --5-.. ---• -• -• -• -• ---1111 ---,. -----.. -• ----.. • -11111 -• SEWAGE FLOW ALLOCATION Year Ended June 30, 1978 Millions of Gal Jons Vista Sanitation District 1,161.727 City of Carlsbad 1,002, 622 2,164.349 Buena Sanitation District 183,811 San Marcos County Water District 814.421 Leucadia County Water District 633.426 Encinitas Sanitary District 195 082 Total 3,991 089 Schedu 1 e B-1 Percent to Total Vista- Carlsbad Combined 53.7 29. 1 46.3 25.1 100.0 4.6 20.4 15.9 --4.9 100.0 100.0 Comments attached are an integral part of these statements. -6- ---• --San -Carlsbad Buena Marcos Leucadia Encinitas --• 22,848 -1 O, 753 • 5, 166 -46,251 -141,656 -• 48,018 -265,250 -717,331 129,666 501,701 470,362 209,018 -• 622,405 282,319 362,020 362,020 180,901 -1,879,678 411,985 863,721 832,382 389,919 • 2,793 505 1,953 1,831 814 -826 149 578 542 241 -3,365 608 2,354 2,2oz 981 -• 1,886,662 413,247 868,606 836,962 391,955 -----• ------8- • -----------1111 -------,. ---------.. -.. ------ Prior year transactions: CASH IN VISTA TRUST ACCOUNTS Year Ended June 30, 1978 Revenue and transfers: 1970 plant enlargement Interest on investments Transfers from phase II Sundry revenue Expenditures: Construction costs: 1970 enlargement *Phase I I I planning costs -step 1 Phase I I A -payments to San Marcos Cash in trust accounts -June 30, 1977 Current year transactions: Revenue: Interest earned Expenditures: ,',Planning costs -step 1 Cash in trust accounts -June 30, 1978 ,·,These costs have not yet been added to the system's assets. Exhibit D County Funds 3097-07 Phase 111 664,687 174,806 549,273 zoo 1,389,466 448,380 100,346 197. 195 745,921 643,545 46,823 690,368 8,786 681 ,582 Federal and state grant funds of $40,595 have been approved by the clean water agencies for phase II, but have not been paid, ($63,554 of claimed costs were held to be ineligible.) On August 23, 1978, claims for $94,000 in apparent eligible costs were submitted for approval for phase I II, step 1 planningo Comments attached are an integral part of these statements. -9-