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Home My WebLink About1982-12-14; Housing & Redevelopment Commission; 4; First Annual Audit & Financial Report. . , HOUSING AND;‘RB EVELOPMENT COWSS1Obi -$BaJDA BILL AB#&&e-- - TITLE: FIRST ANNUAL AUDIT AND FINANCIAL REPORT MTG, 12/14/82 FOR THE CARLSBAD REDEVELOPHENT AGENCY/ DEPT.pE D coI4c1IssIoI\J. DEPT. ‘ii’D. w CITY Am- 1 CITY INOR.&& v - RECOMMENDED ACTION: Redevelopment Commission accept annual audit and direct staff to comply with findings and recommendations contained in report. ITEM EXPLANATION The first annual audit and financial report has been prepared for the Carlsbad Redevelopment Agency/Commission (Exhibit 1). As the City will now be receiving tax increment payments, this is a necessary annual process. The report finds the City is in compliance with all accounting and legal procedures. It recommends setting up certain funds for clear fund separation. Staff has met with auditor and will initiate the recommended procedures. This report was reviewed and accepted by the Design Review Board at their November 24, 1982, meeting. FISCAL IMPACT This action will have no fiscal inpact on the City. EXHIBIT l- Annual Audit and Financial Report/Conrad Associates dated g/27/82. CARLSBAD REDEVELOPMENT AGENCY Financial Statements June 30, 1982 (With Accountants' Report Thereon) CERTIFIED PUBLIC ACCOUNTANTS FOURTEEN CORPORATE PLAZA DRIVE NEWPORT BEACH, CALIFORNIA 92660 714/759-0511 The Board of Directors Carlsbad Redevelopment Agency: Carlsbad, California We have examined the financial statements of the redevelopment project fund and long-term debt account group of the Carlsbad Redevelopment Agency for the year ended June 30, 1982. Our examination was made in accordance with generally accepted auditing standards, and accordingly includes such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of the redevelopment project fund and- long-term debt account group of the Carlsbad Redevelopment Agency at June 30, 1982, and the results of operations of such fund for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. . September 27, 1982 -3 Assets - Amount to be provided for retirement of advances to City of Carl&ad CARLSBADEDEVEUPMENTA~CY Combined Balance Sheet June 30, 1982 Liabilities and F'und Emitv P-edevelopent Projects Fur-d Long-Term rkbt Total (hnorandum QllY) $235,050 235,050 $ $235,050 $235,050 Mvances payable to the City of Carl&ad (note 3) $ $235,050 235,050 $235,050 $235,050 See accom~ying notes to financial statements . CARLSBAD REDEVELOPMENT AGENCY Combined Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 1982 Redevelopment Projects Revenues: Proceeds from advance from City of Carlsbad Expenditures: Administration: Salaries and wages Professional services Other Total expenditures Excess of Revenues over Expenditures: Fund balance 7-1-81 Fund balance 6-30-82 Fund $53,123 24,131 10,751 18.241 _ - 53,123 $ See accompanying notes to financial statements CARLSBAD REDEVELOPMENT AGENCY Notes to Financial Statements June 30, 1982 (1) Summary of Significant Accounting Policies The different funds and account groups in which financial data pertaining to the Carlsbad Redevelopment Agency (hereafter the "Agency") are recorded as follows: Redevelopment Prqjects Fund This fund accounts for all revenues and costs of implementing Redevelopment Project Area Number 1 in accordance with the California Community Redevelopment law, including acquisition of properties, cost of site improvements, and other costs of benefit to the project area and administrative expenses incurred in sustaining agency activities. Debt Service Fund This fund was established to finance and account for the payment of interest and principal on the Agency's long term advances from the City and any other long term debt. The principal sources of revenue of this fund are tax increment (80%) and investment income. Low and Moderate Income Housinq Special Revenue Fund This fund is utilized to account for tax increment (20%) revenue restricted as to use for expenditures in connection with low and moderate income housing. Lonq-Term Debt Group of Accounts This group of accounts is used to account for, in a separate self-balancing group of accounts, the Agency's outstanding indebtedness. Memorandum Only Totals Columns in the accompanying financial statements captioned "Total (Memorandum Only)" are not necessary for a fair presentation of the financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical data. . CARLSBAD REDEVELOPMENT AGENCY Notes to Financial Statements (Continued) Basis of Accountinq The modified basis of .accounting is utilized by all fund types. The modified accr.ual basis of accounting, under which expenditures, other than interest on long term debt, are recorded when the liability is incurred and revenues are recorded when received in cash unless susceptible to accrual, i.e., measurable and available to finance the Agency. (2) Creation of the Redevelopment Aqency The Carlsbad Redevelopment Agency was activated in July 1976 with the adoption of Ordinance No. 1191 by the Carlsbad City Council pursuant to the California Community Redevelopment law, now codified as Part 1, Division 24, of the State of California Health and Safety Code. The Agency has the broad authority to acquire, rehabilitate, develop, administer and sell or lease property. _ - The principal objectives are to eliminate blightened in- fluences within the "Village Area" of the City of Carlsbad, stimulate and attract private investment, generate added employment through increased specialty goods and services and expand the City's sales tax revenue. (3) Advances from the City of Carlsbad Since activation of the Redevelopment Agency in July 1976 the City has advanced the Agency monies for appproved administra- tion expenditures. At June 30, 1982, the aggregate amount of City advances are $235,050. Such amounts will bear interest at 10% commencing July 1, 1982. CERTIFIED PUBLIC ACCOUNTANTS FOURTEEN CORPORATE PLAZA DRIVE NEWPORT BEACH, CALIFORNIA 9:660 714/759-091 ACCOUNTANTS' REPORT ON COMPLIANCE WITH AUDIT GUIDELINES FOR CALIFORNIA REDEVELOPMENT AGENCIES Board of Directors Carlsbad Redevelopment Agency In connection with our examination of the financial statements, we have performed, to the extent applicable, the tasks contained in Section 1 through 4 of the "Guidelines f.or Compliance Audits of California Redevelopment Agencies" published by the State Controller. Based on the above procedures, we are of the opinion that the _ _ Agency complied in all material respects with criteria established in the State Controller's guidelines referred to above except as follows: The Agency had not submitted to the State of California an annual report containing an independent financial audit report, a work program for the coming year including goals, an examination of the previous year's achievements with a comparison to that year's established goals, and recommendation for needed legislation. The Carlsbad Village Area Redevelopment Plan was not adopted until November, 1981, and it is our understanding that the required annual report will be submitted shortly after October, 1982, the end of the 12 month reporting period. The Agency had not prepared a plan for relocation of non-profit local community institutions to- be temporarily or permanently displaced from facilities in the project area. September 27, 1982