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HomeMy WebLinkAbout1993Lew r�u CITY OF CHUBBUCK, IDAHO GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 1993 jkn Jones, Yost, Hatt, Erickson � Co. CERTIFIED PUBLIC ACCOUNTANTS POCATELLO, IDAHO L L L CITY OF CHUBBUCK, IDAHO GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 1993 r li t r. CITY OF CHUBBUCK ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1993 TABLE OF CONTENTS Page Independent Auditor's Report Numbers Report on Compliance Report on Internal Control Structure General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups . . . . . 7 Combined Statement of Revenue, Expenditures, and Changes in Fund Balance - All Governmental Fund Types . . . . . . . . . . . . . . 9 Combined Statement of Revenue, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types . . . . . . . . . . . . . . 10 Statement of Cash Flows -- All Proprietary Funds Types . . . . . . . 11 General Fund: Statement of Revenue and Expenditures - Budget and Actual . . . . 12 Proprietary Fund Types: Statement of Changes in Fixed Assets . . . . . . . . . . . . . . 13 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . 14 OTHER STATEMENTS AND SCHEDULES Statement of Expenditures - Budget and Actual, General Fund 25 Combining Balance Sheet - Special Revenue Funds . . . . . . . . . . 27 Combining Statement of Revenue and Expenditures and Changes in Fund 41 Balance - Special Revenue Funds . . . . . . . . . . . . . . . . . 29 Combining Balance Sheet - Capital Project Funds . . . . . . . . . . 31 Combining Statement of Revenue and Expenditures - Capital Project Funds . . . . . . . . . . . . . . . . . . . . . . 33 Combining Balance Sheet - Enterprise Funds . . . . . . . . . . . . . 35 Combining Statement of Revenue and Expenses - Enterprise Funds . . . 37 Statistical Section: Ten Year Summary of Tax Levies . . . . . . . . . . . . . . . . . 39 Report on Supplemental Schedule of Federal Financial Assistance . . 40 Supplemental Schedule of Federal Financial Assistance . . . . . . . 41 Single Audit Report on Compliance with Specific Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions 42 Single Audit Report on Compliance With General Requirements Applicable to Federal Financial Assistance Programs 43 Single Audit Report on Internal Control Structure . . . . . . . . . 44 i I �Jko 16 hones, Yost, Hatt, j Erickson & Co, SCOTT N. JONES, CPA CERTIFIED PUBLIC ACCOUNTANTS KENT L. YOST, CPA, JD P.O. BOX 4987 MORGAN J. HATT, CPA Pocatello, Idaho 83205 STACY L. ERICKSON, CPA Honorable Mayor and City Council Members City of Chubbuck, Idaho Independent Auditor's Report MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants We have audited the accompanying general purpose financial statements of the City of Chubbuck, Idaho, as of September 30, 1993, and for the year then ended. These general purpose financial statements are the responsibility of City management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and conduct the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose 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 general purpose financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of the City of Chubbuck, Idaho, as of September 30, 1993, and the results of its operations and changes in cash of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Chubbuck. This information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. eJ�- �� A -e F 4�D' JON YOST, HATT-, ERICKSON & CO. Pocatello, Idaho, February 11, 1994. 416 SOUTH 4TH AVENUE , P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 2081233-5000 9 FAX 2081233-5010 it L jkn Jones, Yost, Hatt, !tic Erickson & Co. SCOTT N. JONES, CPA CFRTIFEED PUBLIC ACCOUNTANTS KENT L. YOST, CPA, JD P.O. BOX 4987 MORGAN J. HATT, CPA Pocatello, Idaho 83205 STACY L. ERICKSON, CPA Honorable Mayor and City Council Members City of Chubbuck, Idaho Independent Auditor's Report MFMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants Compliance Report Based on an Audit of General Purpose Financial Statements Performed in Accordance With Government Auditing Standards We have audited the general purpose financial statements of the City of Chubbuck, Idaho, as of and for the year ended September 30, 1993, and have issued our report thereon dated February 11, 1994. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and conduct the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Chubbuck, Idaho, is the responsibility of City management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we conducted tests of the City's compliance with certain provisions of laws, regulations, and contracts. However, our objective was not to provide an overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the City of Chubbuck, Idaho, complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. This report is intended for the information of the City of Chubbuck, and its Federal audit cognizant agency. This restriction is not intended to limit the distribution of this report, which is a matter of public record. /JWJ2 GJ , JOKE YCOST, HATT, ERICKSON & CO. Pocatello, Idaho, February 11, 1994. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 2081233-5000 • FAX 2081233-5010 i i 1'r I kn Jones, Yost, Hatt, 6 Erickson & Co. SCOTT N. JONES, CPA J) CERTIFIED PUBLIC ACCOUNTANTS KENT L. YOST, CPA, JD P.O. BOX 4987 MORGAN J. HATT, CPA Pocatello, Idaho 83205 STACY L. ERICKSON, CPA Honorable Mayor and City Council Members City of Chubbuck, Idaho MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants Report on Internal Control Structure Based on an Audit of General Purpose Financial Statements Performed in Accordance With Government Auditing Standards We have audited the general purpose financial statements of the City of Chubbuck, Idaho, as of and for the year ended September 30, 1993, and have issued our report thereon dated February 11, 1994. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the City of Chubbuck, Idaho, for the year ended September 30, 1993, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. Management of the City of Chubbuck, Idaho, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 2081233-5000 • FAX 2081233-5010 I i r Honorable Mayor and City Council Members Page 2 For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Internal Account Cash Payroll Grants Budgets Controls Revenues Expenditures Fixed Assets Purchasing For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. This report is intended for information of the City of Chubbuck and Federal agencies. however, this report is a matter of public record and its distribution is not limited. 2 l JONE YOS , HATY, ERICKSON CO. ' Pocatello, Idaho, February 11, 1994. CITY OF CHUBBUCK COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1993 ASSETS: Cash . . . . . . . . . . . . . . . . . Receivables: Property taxes (Note 1-H) . State sales tax . . . . . . . . . . Highway users' tax . . . . . . . . Inventory phase-out tax . . . . . . Accounts (Note 1-B) . . . . . . . . Court . . . . . . . . . . . . . . . State liquor tax. . . . . . . . . . Note receivable . . . . . . . . . . Grant . . . . . . . . . . . . . . . Amount to be provided for general obligation bonds . . . . . . . . . Restricted Cash: Replacement funds . . . . . . . . . Bond reserve . . . . . . . . . . . Water meter deposits . . . . . . . Fixed assets -net (Note 1-C). . . . . . Total assets . . . . . . . . . . . LIABILITIES: Accounts payable . . . . . . . . . . . Deposits payable . . . . . . . . . . . Deferred property taxes. . . . . . . . Deferred grant . . . . , . . General obligation bonds payable . Payable from Restricted Cash: Bonds payable - current . . . . . . Accrued bond interest payable . . . Bonds payable - long term. . Total liabilities . . . . . . . . . FUND EQUITY: Investment in general fixed assets . Retained earnings . . . . . . . . . . Contributed capital - net . . . . . . Reserve for debt service . . . . . . . Reserve for replacement funds . . . . Fund balance - undesignated . . . . . Total fund equity . . . . . . . . . Total liabilities and fund equity . Governmental Fund Types Special General Revenue Fund Funds $ 115,848 $ 45,542 38,906 58,230 73,173 13,767 3,976 4,761 10,632 8,166 Capital Project Funds $ 356,951 $ 327,459 $ 45,542 $ 356,951 ----------- ----------- ----------- $ 17,591 29,878 8,166 55,635 $ 0 $ 0 271,824 45,542 356,951 271,824 45,542 356,951 $ 327,459 $ 45,542 $ 356,951 The accompanying notes are an integral part of these statements. -7- Proprietary Fund Types Account Groups Internai General _ General Totals Enterprise Service Fixed Long -Term (Memorandum Funds Fund Assets Debt Only) $ 236,331 $ 10,086 $ 764,758 38,906 58,230 73,173 13,767 201,592 201,592 3,976 4,761 10,632 8,166 $ 435,000 435,000 561,642 561.642 290,094 290,094 60,540 60,540 1,874,810 66,771 $ 2,471,661 4,413,242 $ 3,225,009 $ 76,857 $ 2,471,661 $ 435,000 $ 6,938,479 $ 17,695 60,540 $ 435,000 $ 35,286 60,540 29,878 8, 166 435,000 40,000 40,000 23,400 23,400 790,000 790,000 931,635 $ 0 $ 0 435,000 1,422,270 2,471,661 856,920 76,857 584,718 290,094 561,642 2,293,374 76,857 2,471,661 $ 3,225,009 $ 76,857 $ 2,471,661 1P "jj, VVV 2,471,661 933,777 584,718 290,094 561,642 674,317 5,516,209 $ 6,938,479 CITY OF CHUBBUCK COMBINED STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30, 1993 Governmental Fund Types EXCESS REVENUE OR (EXPENDITURES) . . . . . 66,247 Special Capital Totals OTHER FINANCING SOURCES (USES): General Revenue Project (Memorandum REVENUE: Fund Funds Funds Only) Taxes . . . . . . . . . $ 1,538,981 $ 1,538,981 Licenses and permits . . 61,772 EXCESS (SOURCES/USES) -22,453 61,772 Court revenue. . . . . . 52,978 FUND BALANCE - BEGINNING 294,277 52,978 Refunds . . . . . . . . 11,855 11,855 Interest . . . . . . . . 6,104 $ 1,238 $ 10,204 17,546 Donations . . . . . . . 13,356 324 13,680 Grants . . . . . . . . . 53,460 53,460 Miscellaneous . . . . . 13,174 2,388 15,562 Fire protection service. 57,537 57,537 Program income 34,434 34,434 Total revenue 1,830,295 16,982 10,528 1,857,805 EXPENDITURES: General government 184,880 2,446 1,204 188,530 Law enforcement. . 744,569 744,569 Fire control . . . . . . 216,584 216,584 Parks and recreation 137,965 137,965 Highways and streets 336,568 336,568 Health and welfare . 12,055 12,055 Capital outlay . . . . . 73,437 43,788 117,225 Debt service . . . . . . 57,990 57,990 Total expenditures 1,764,048 2,446 44,992 1,811,486 EXCESS REVENUE OR (EXPENDITURES) . . . . . 66,247 14,536 -34,464 46,319 OTHER FINANCING SOURCES (USES): Transfers from other funds 2,500 88,700 91,200 Transfers to other funds -88,700 -88,700 EXCESS (SOURCES/USES) -22,453 17,036 54,236 48,819 FUND BALANCE - BEGINNING 294,277 28,506 302,715 625,498 FUND BALANCE - ENDING . . . $ 271,824 $ 45,542 $ 356,951 $ 674,317 The accompanying notes are an integral part of these statements. -9- CITY OF CHUBBUCK COMBINED STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1993 OPERATING REVENUE: Service Charges . . . . . . . . . . Interfund revenue . . . . . . . . . Total operating revenue . . . . . OPERATING EXPENSES: Personnel . . . . . . . . . . . . . Personnel benefits . . . . . . . . . Supplies . . . . . . . . . . . . . . Purchased services . . . . . . . . . Interfund expenses . . . . . . . . . Depreciation . . . . . . . . . . . . Total operating expenses . . . . OPERATING INCOME . . . . . . . . . . . NONOPERATING REVENUE (EXPENSES): Interest income . . . . . . . . . . Interest expense . . . . . . . . . . Total nonoperating revenue (expenses) . . . . . . . . . . NETINCOME . . . . . . . . . . . . . . OTHER FINANCING SOURCES (USES): Transfers from other funds . Transfers to other funds . . . . . . RETAINED EARNINGS, RESERVES: Balance - Beginning . . . . . . . . RETAINED EARNINGS, RESERVES: Balance - Ending . . . . . . . . . . Water, Sewer and Garbage Internal Enterprise Service Fund Fund $ 1,591,611 $ 92,298 1,591,611 92,298 To tal s $ 1,591,611 92,298 1,683,909 386,712 60,296 447,008 154,692 154,692 52,332 6,072 58,404 631,322 11,275 642,597 21,000 21,000 116,634 4,212 120,846 1,362,692 81,855 1,1444,547 228,919 10,443 239,362 28,484 28,484 -51,363 -51,363 -22,879 -22,879 206,040 10,443 216,483 113,176 113,176 -115,676 -115,676 1,505,116 66,415 1,571,531 $ 1,708,656 $ 76,858 $ 1,785,514 The accompanying notes are an integral part of these statements. -10- CITY OF CHUBBUCK STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1993 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets . . . . . . . . . . . . . . . . -25,346 -3,476 CASH FLOWS FROM FINANCING ACTIVITIES: Bond principal payments . . . . . . . . . . . . . . . . -40,000 0 NETCASH TRANSFERS . . . . . . . . . . . . . . . . . . . . -2,500 0 NET INCREASE (DECREASE) IN CASH . . . . . . . . . . . . . 220,372 11,179 CASH AT SEPTEMBER 30, 1992 . . . . . . . . . . . . . . . 928,235 -1,093 CASH AT SEPTEMBER 30, 1993 • • • . • • . . • • • . • • • • $ 1,148,607 $ 10,086 The accompanying notes are an integral part of these statements. -11- Water, Sewer and Garbage Internal Enterprise Service CASH FLOWS FROM OPERATING ACTIVITIES: Fund Fund Net income . . . . . . . . . . . . . . . . . . . . . . . $ 206,040 $ 10,443 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation . . . . . . . . . . . . . . . . . . . . . 116,634 4,212 Increase in accounts receivable . . . . . . . . . . . -25,526 Decrease in accounts payable . . . . . . . . . . . . -12,515 Increase in deposits payable . . . . . . . . . . . . . 4,285 Decrease in accrued interest . . . . . . . . . . . . -700 Total adjustments . . . . . . . . . . . . . . . . 82,178 4,212 Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . 288,218 14,655 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets . . . . . . . . . . . . . . . . -25,346 -3,476 CASH FLOWS FROM FINANCING ACTIVITIES: Bond principal payments . . . . . . . . . . . . . . . . -40,000 0 NETCASH TRANSFERS . . . . . . . . . . . . . . . . . . . . -2,500 0 NET INCREASE (DECREASE) IN CASH . . . . . . . . . . . . . 220,372 11,179 CASH AT SEPTEMBER 30, 1992 . . . . . . . . . . . . . . . 928,235 -1,093 CASH AT SEPTEMBER 30, 1993 • • • . • • . . • • • . • • • • $ 1,148,607 $ 10,086 The accompanying notes are an integral part of these statements. -11- CITY OF CHUBBUCK STATEMENT OF REVENUE AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1993 REVENUE: Property taxes . . . . . . . . . . . Sales tax . . . . . . . . . . . . . . Inventory phaseout . . . . . . . . . . Highway users tax . . . . . . . . . . Liquor Lax . . . . . . . . . . . . . . Road and bridge tax . . . . . . . . . Franchise taxes . . . . . . . . . . . Interest on delinquent taxes . . . . . Subtotal . . . . . . . . . . . . . Budget Actual Variance $ 882,749 $ 898,732 $ 15,983 200,000 204,992 4,992 39,800 47,987 8,187 270,000 273,016 3,016 20,000 27,911 7,911 27,500 38,440 10,940 41,300 39,970 -1,330 10,000 7,933 -2,067 -463 Program income . . . . . . . . . . . . 37,500 1,491,349 1,538,981 47,632 State grants . . . . . . . . . . . . . 36,784 53,460 16,676 Court revenue . . . . . . . . . . . . 78,000 52,978 -25,022 Insurance refund . . . . . . . . . . . 10,000 11,855 1,855 Licenses and permits . . . . . . . . . 38,150 61,772 23,622 Interest . . . . . . . . . . . . . . . 15,000 6,104 -8,896 Miscellaneous . . . . . . . . 33,950 13,174 -20,776 Fire Protection Service . . . 58,000 57,537 -463 Program income . . . . . . . . . . . . 37,500 34,434 -3,066 Total revenue . . . . . . . . . . . 1,798,733 1,830,295 31,562 EXPENDITURES: General Government . . . . . . . . . . Law enforcement . . . . . . . . . . . Fire control . . . . . . . . . . . . . Parks and recreation . . . . . . . . . Highways and streets . . . . . . . . . Health and welfare . . . . . . . . . . Capital outlay . . . . . . . . . . . . Debt service . . . . . . . . . . . . . 181,923 184,880 -2,957 738,748 744,569 -5,821 228,588 216,584 12,004 140,878 137,965 2,913 384,197 336,568 47,629 15,724 12,055 3,669 86,448 73,437 13,011 57,400 57,990 -590 Total expenditures . . . . . . . . 1,833,906 1,764,048 69,858 EXCESS REVENUE OR (EXPENDITURES) . . . . TRANSFERS TO OTHER FUNDS . . . . . . . . TRANSFERS FROM OTHER FUNDS . . . . . . . -35,173 66,247 101,420 -95,700 --88,700 7,000 EXCESS SOURCES (USES) . . . . . . . . . . $ -130,873 $ -22,453 $ 108,420 The accompanying notes are an integral part of these statements. -12- CITY OF CHUBBUCK STATEMENT OF CHANGES IN FIXED ASSETS PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1993 ENTERPRISE FUND FIXED ASSETS: _ Balance at cost -- September 30, 1992 $ Additions . . . . . . . . . . . . . . Deletions . . . . . . . . . . . . . . Storage and Buildings Distribution and System Equipment Totals 3,152,929 $ 579,521 $ 3,732,450 25,346 25,346 0 Balance at cost - September 30, 1993 - 3,152,929 604,867 3,757,796 Less accumulated depreciation -1,579,237 -303,750 -1,882,987 Balance - net - September 30, 1993 . $ 1,573,692 $ 301,117 $ 1,874,809 INTERNAL SERVICE FUND FIXED ASSETS: Balance at cost - September 30, 1992 $ 99,622 $ 99,622 Additions: Equipment . . . . . . . . . . . . $ 0 3,476 3,476 Balance at cost - September 30, 1993 103,098 103,098 Less accumulated depreciation 0 -36,327 -36,327 Balance - net - September 30, 1993 $ 0 $ 66,771 $ 66,771 The accompanying notes are an integral part of these statements. -13- r I CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1993 (1) A. REPORTING ENTITY The City of Chubbuck, Idaho was incorporated on December b, 1949. For financial reporting purposes, management has considered potential component units. The decision to include a potential component unit in the reporting entity is made by applying the criteria set forth in generally accepted accounting principles. The basic criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. A second criterion used in evaluating potential component units is the scope of public service. A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the City is able to exercise oversight responsibilities. Based upon the application of these criteria, the City has no potential component units. B. FUND ACCOUNTING The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another Hand. PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. -14- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS -- CONTINUED SEPTEMBER 30, 1993 B. FUND ACCOUNTING - CONTINUED All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Due to small amounts of losses, the City does not make an allowance for doubtful accounts in the Plater and Sewer Enterprise Funds. C. FIXED ASSETS The accounting and reporting treatment applied to the fixed assets associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. Infra- structure is not included in fixed assets. An account group is not a "fund." It is concerned only with the measurement of financial position. It is not involved with measurement of results of operations. D.- BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accural basis of accounting. Their revenues are recognized when they are measureable and available. -15- r CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS -- CONTINUED SEPTEMBER 30, 1993 (1) D. BASIS OF ACCOUNTING - CONTINUED Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. E. BUDGETS AND BUDGETARY ACCOUNTING The City follows budgeting procedures as outlined in the Idaho State Code. Budgets are prepared on the modified accrual basis. F. INVENTORY Inventory is expensed when purchased. No provision is made in the financial statements for inventory on hand at year end since said amounts are immaterial. G. TOTAL COLUMNS ON COMBINED STATEMENTS Total columns on the Combined Statements are captioned 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 financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. H. PROPERTY TAXES Property taxes are levied on the third Monday in September and attach as an enforceable lien on property as of January 1. Real taxes are payable in two installments on December 20, and June 20, of the following year. Personal taxes are payable in one installment on December 20. The County bills and collects property taxes for the City. Taxes not received within sixty days following year end are deferred. Due to the very high ratio of property taxes collected to taxes levied, the City does not make an allowance for uncollectible property taxes. -16- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1993 (2) CHANGES IN GENERAL FIXED ASSETS Description: Land and Buildings . Construction in progress Machinery and equipment . . . . . Improvements other than buildings Totals . . . . . . Balance Balance at 09-30--92 Additions Deletions 09-30--93 $ 534,051 $ 534,051 481,347 $ 43,788 525,135 1,136,381 65,186 $ -80,200 1,121,367 289,810 1,298 291,108 $2,441,589 $ 110,272 $ --80,200 $2,471,661 Note: Enterprise fund properties are reported separately and are not included in the above balance at September 30, 1993. (3) GENERAL LONG-TERM DEBT (FIRE STATION BONDS) Issue of August 1, 1990: Due Annual Date Principal Rate Interest Total 08/01/94 $ 25,000 8,250% $ 30,265.00 $ 55,265.00 08/01/95 25,000 7.750% 28,202.50 53,202.50 08/01/96 30,000 6.400% 26,265.00 56,265.00 08/01/97 30,000 6.500% 24,345.00 54,345.00 08/01/98 30,000 6.600% 22,395.00 52,395.00 08/01/99 35,000 6.700% 20,415.00 55,415.00 08/01/00 35,000 6.800% 18,070.00 53,070.00 08/01/01 40,000 6.900% 15,690.00 55,690-00 08/01/02 40,000 6.950% 12,930.00 52,930.00 08/01/03 45,000 7.000% 10,150.00 55,150.00 08/01/04 50,000 7.000% 7,000.00 57,000.00 08/01/05 50,000 7.000% 3,500.00 53,500.00 $ 435,000 $219,227.50 $654,227,50 Bonds retired in 1993 . . . . . . . . . . . . . . . $ 25,000.00 4) NOTE RECEIVABLE ($10,632.00 Balance): On March 9, 1989, the City of Chubbuck sold property for $90,000.00. The City received $75,000.00 down and the balance will be paid over 10 years with annual payments of $2441.25 including interest at 10%. -17- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1993 (5) RETIREMENT PLAN Substantially all full-time employees and certain part-time employees of the City of Chubbuck are members in the Public Employee Retirement System of Idaho (the System), a cost-sharing, multiple -employer plan established by the Legislature of the State of Idaho. The City's total payroll for 1993 was $1,141,329 of which $1,056,471 was covered payroll for employee members in the System. The System is a defined benefit plan requiring both member and employer contributions. After five years of credited service, members become fully vested in retirement benefits earned to date. Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. For each year of credited service, the annual service retirement allowance is 1.75 percent or 2.075 percent (depending upon employee classification) of the average monthly salary for the highest consecutive sixty months. Effective October 1, 1993, the annual service retirement allowance rates will change to 1.833% or 2.150% depending upon employee classification. The eligibility and amount of allowance differs for early retirement, service retirement, vested retirement and disability retirement. The System's funding policy provides for periodic employer contributions at actuarially determined rates, expressed as percentages of annual covered payroll to accumulate sufficient assets to pay benefits when due. The employer and employee contribution rates as a percentage of salary are as follows: Employee Group General . . . . . . . . . . Police . . . . . . . . . . Fire (hired after 10-1--80) Fire (hired before 10-1-80) Contribution Rates at June 30, 1993 Employer Employee 9.75% 5.84% 9.75% 7.02% 27.15% 7.02% 35.90% 11.45% Contribution Rates Effective October 1, 1993 Employer Employee 10.63% 6.38% 10.87% 7.82% 27.25% 7.82% 35.90% 11.45% Total contributions to the System for 1993 amounted to $103,364 by the City and $67,226 by members. The pension benefit obligation is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess the System's funding status on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee retirement systems. The System's pension benefit obligation was determined as part of an actuarial valuation at June 30, 1993. As of that date, the System's unfunded pension benefit obligation was as follows (in millions): Total pension benefit obligation . . . . . . . . $3,013.9 Net assets available for benefits, at cost . . . 2,121.4 Unfunded pension benefit obligation . . . . . . $ 892.5 -18- CITY OF CHUBDUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1993 (5) RETIREMENT PLAN - CONTINUED Ten year historical trend data is presented as additional information in the financial statements of the System for the year ended June 30, 1993. This additional data provides information about progress made by the System in accumulating sufficient assets to pay benefits when due. REVENUES BY SOURCE AND EXPENSES BY TYPE Revenues by Source Fiscal Employee Employer Investment Year Contributions Contributions Income Total 1984 $ 37,360,468 $ 64,625,435 $ 50,765,709 $152,751,612 1985 41,084,589 71,230,336 61,799,780 174,114,705 1986 43,021,584 75,046,384 140,957,599 259,025,567 1987 44,427,170 77,280,764 160,191,693 281,899,627 1988 47,701,441 86,437,686 81,039,524 215,178,651 1989 50,951,811 88,859,430 104,504,241 244,315,482 1990 55,330,814 96,744,650 116,667,508 268,742,972 1991 59,618,756 105,663,837 103,799,893 269,082,486 1992 65,423,742 114,439,170 149,462,437 329,325,349 1993 73,744,397 124,814,031 213,460,921 412,019,349 Expenses by Type Administrative Fiscal Investment Year Benefits Expenses Refunds Total 1984 $ 50,878,372 $ 2,597,408 $10,631,011 $ 64,106,791 1985 56,287,627 3,278,760 11,286,642 70,853,029 1986 61,712,854 4,384,580 12,276,820 78,374,254 1987 67,187,276 4,970,620 13,269,570 85,427,466 1988 72,586,670 6,532,073 11,006,658 90,125,401 1989 78,280,585 6,831,581 12,782,267 97,894,433 1990 84,649,572 7,709,603 12,871,091 105,230,266 1991 94,087,813 9,505,615 17,257,185 120,850,613 1992 104,124,166 10,451,480 11,836,425 126,412,071 1993 114,637,439 12,755,245 11,754,656 139,147,340 _19_ -20- sr o o ra O •r -I 4-3 m o w ao s~ ae a r c rL f o �- N o N 0 rn m Nco'- SU. 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U m a) • • ca cd o} (1) a) U) N u) U U () U/) x ON V) x ro rn (i) cd H H —1 F4 I CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1993 (8) CASH ON HAND, IN BANKS, AND INVESTED All cash and investments are insured or fully collateralized with certificates held by agents in the City's name. CASH BALANCE IN FUNDS: General. . . . . . . . . . . . . . . $ 115,848 Special revenue . . . . . . . . . . . . 45,542 Capital projects . . . . . . . . . . . . 356,951 Enterprise . . . . . . . . . . . . . . . 1,148,607 Internal service . . . . . . . . . . . . 10,086 $ 1,677,034 CASH, DEPOSITS AND INVESTMENTS: Petty cash . . . . . . . . . . . . . . . $ 195 Checking accounts: General - First Security . . . . . . 115,653 Water Works - Key Bank . . . . . . . 132,710 248,363 Inveitments: Key Bank - Savings . . . . . . . . . 134,463 Key Bank - Savings. . . . . . . . . . 85,352 State pool . . . . . . . . . . . . . 781,621 First Security Bank -- CD . . . . . . 82,034 Idaho Central Credit Union . . . . . 65,000 Key Bank - CD . . . . . . . . . . . . 23,079 Key Bank - Savings . . . . . . . . . 86,048 Key Bank - Savings. . . . . . . . . . 61,632 Key Bank - Savings . . . . . . . . . 109,247 Total cash in banks . . . . . . . -22- 1,428,476 $ 1,677,034 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1993 (9) SUMMARY OF MATURITIES AND INTEREST ON SEWER REVENUE BONDS BY YEAR Bonds retired in 1993 . . . . . . . . . . . $ 20,000.00 -23- Interest Interest Principal Due Due Due Total Year April 1 October 1 October 1 Due 1993 $ 23,100.00 $ 20,000.00 $ 43,100.00 1994 $ 22,500.00 22,500.00 20,000.00 65,000.00 1995 21,900.00 21,900.00 25,000.00 68,800.00 1996 21,150.00 21,150.00 25,000.00 67,300.00 1997 20,400.00 20,400.00 25,000.00 65,800.00 1998 19,650.00 19,650.00 30,000.00 69,300.00 1999 18,750.00 18,750.00 30,000.00 67,500.00 2000 17,850.00 17,850.00 30,000.00 65,700.00 2001 16,950.00 16,950.00 35,000.00 68,900.00 2002 15,900.00 15,900.00 35,000.00 66,800.00 2003 14,850.00 14,850.00 40,000.00 69,700.00 2004 13,650.00 13,650.00 40,000.00 67,300.00 2005 12,450.00 12,450.00 40,000.00 64,900.00 2006 11,250.00 11,250.00 45,000.00 67,500.00 2007 91900.00 9,900.00 45,000.00 614,800.00 2008 8,550.00 8,550.00 50,000.00 67,100.00 2009 7,050.00 7,050.00 55,000.00 69,100.00 2010 5,400.00 5,1400.00 55,000.00 65,800.00 2011 3,750.00 3,750.00 60,000.00 67,500.00 2012 1,950.00 1,950.00 65,000.00 68,900.00 Totals $263,850.00 $286,950.00 $770.000.00 $1,320,800.00 Bonds retired in 1993 . . . . . . . . . . . $ 20,000.00 -23- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1993 (10) SUMMARY OF MATURITIES AND INTEREST ON WATER REVENUE BONDS BY YEAR Bonds retired in 1993 . . . . . . . . . . . . . -24- Principal Due September 1 $ 20,000.00 20,000.00 20,000.00 $ 60,000.00 $ 20,000.00 Total Due $ 23,600.00 22,400.00 21,200.00 $ 67,200.00 Interest Interest Due Due Year Numbers March 1 September 1 1993 35-38 1994 39-42 $ 11800.00 $ 1,800.00 1995 43-46 1,200.00 1,200.00 1996 47-50 600.00 600.00 Totals $ 3,600.00 ---------- $ 3,600.00 ------------ Bonds retired in 1993 . . . . . . . . . . . . . -24- Principal Due September 1 $ 20,000.00 20,000.00 20,000.00 $ 60,000.00 $ 20,000.00 Total Due $ 23,600.00 22,400.00 21,200.00 $ 67,200.00 CITY OF CHUBBUCK STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1993 LEGISLATIVE: Salaries . . . . . . . . . . . . . . . Purchased services . . . . . . . . . . EXECUTIVE: Salaries . . . . . . . . . . . . . . . Purchased services . . . . . . . . . . FINANCIAL: Salaries . . . . . . . . . . . . . . . Supplies . . . . . . . . . . . . . . . Budget Actual Variance $ 14,400 $ 14,400 $ 0 5,500 7,148 -1,648 19,900 21,548 -1,648 9,600 9,600 0 1,500 1,862 -362 1 1, 100 11,462 -362 3,780 3,780 0 2,250 1,049 1,201 6,030 4,829 1,201 LEGAL: Purchased services . . . . . . . . . . 22,200 24,068 -1,868 OTHER GENERAL GOVERNMENT: Personnel benefits . . . . . . . . . . Insurance . . . . . . . . . . . . . . Utilities . . . . . . . . . . . . . . Building maintenance . . . . . . . . . Capital outlay . . . . . . . . . . . . Transfer . . . . . . . . . . . . . . . Miscellaneous . . . . . . . . . . . . BUILDING INSPECTION: Salaries . . . . . . . . . . . . . . . Personnel benefits . . . . . . . . . . Supplies and other . . . . . . . . . . ENGINEERING: Salaries . . . . . . . . . Supplies and other . . . . . . . . . . 27,993 36,843 -8,850 18,591 19,933 -1,342 0 2,297 -2,297 7,605 5,615 11990 14,388 10,130 4,258 40,000 40,000 0 21,073 9,039 12,034 129,650 123,857 5,793 25,447 26,550 -1,103 6,564 8,502 -1,938 3,650 1,871 1,779 35,661 36,923 -1,262 6,495 8,580 -2,085 5,275 3,744 1,531 11,770 12,324 -554 The accompanying notes are an integral part of these statements. -25- CITY OF CHUBBUCK STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1993 LAW ENFORCEMENT: Salaries . . . . . . . . . . . Budget Actual Variance CONTINUED . . . . 132,322 137,234 -4,912 STREETS AND ROADS: . . . . 87,128 68,146 18,982 Salaries . . . . . . . . . . . . . . . $ 156,645 $ 121,062 $ 35,583 Personnel benefits . . . . . . . . . . 48,192 36,056 12,136 Supplies . . . . . . . . . . . . . . . 98,135 95,560 2,575 Purchased services . . . . . . . . . . 81,225 83,890 -2,665 Transfers . . . . . . . . . . . . . . _ 30,700 23,700 7,000 414,897 360,268 514,629 LAW ENFORCEMENT: Salaries . . . . . . . . . . . . . . . 431,274 425,375 5,899 Personnel benefits . . . . . . . . . . 132,322 137,234 -4,912 Supplies . . . . . . . . . . . . . . . 87,128 68,146 18,982 Purchased services . . . . . . . . . . 88,024 113,814 -25,790 Capital outlay . . . . . . . . . . . . 60,587 53,691 6,896 Debt service . . . . . . . . . 799,335 798,260 1,075 FIRE CONTROL: Salaries . . . . . . . . . . . . . . . 135,000 108,982 26,018 Personnel benefits . . . . . . . . . . 37,488 29,379 8,109 Supplies . . . . . . . . . . . . . . . 23,800 146,751 -22,951 Purchased services . . . . . . . . . . 32,300 31,472 828 Capital outlay . . . . . . . . . . . . 8,200 5,142 31058 Debt service . . . . . . . . . . . . . 57,400 57,990 -590 Transfer . . . . . . . . . . . . . . . 25,000 25,000 0 Contributions . . . . . . 339,188 304,716 14,472 PARKS AND RECREATION: Salaries . . . . . . . . . . . . . . . 38,5140 53,292 -114,752 Personnel benefits . . . . . . . . . . 17,672 17,1438 234 Supplies . . . . . . . . . . . . . . . 29,351 22,354 6,997 Purchased services . . . . . . . . . . 55,315 144,881 10,434 Capital outlay . . . . . . . . . . . . 3,273 4,473 -1,200 144,151 142,438 1,713 HEALTH AND WELFARE: Contributions . . . . . . . . . . 15,724 12,055 3,669 Total general fund . . . . . . . . $1,929,606 $1,852,748 $ 76,858 The accompanying notes are an integral part of these statements. -26- CITY OF CHUBBUCK COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS SEPTEMBER 30, 1993 Road Dedication ASSETS: Cash . . . . . . . . . . . . . . . . $ 5,157 Total assets . . . . . . . . . . $ 5,157 LIABILITIES: Total liabilities . . . . . . . . $ 0 Juvenile LID #1 Referral Fund Fund $ 10,960 $ 949 $ 10,960 $ 949 $ 0 $ 0 FUND EQUITY: Fund balance . . . . . . . . . . . . 5,157 10,960 949 Total fund equity . . . . . . . . 5,157 10,960 949 Total liabilities and fund equity . . . . . . . . . $ 5,157 $ 10,960 $ 949 The accompanying notes are an integral part of these statements. -27- Heal th Police Insurance Training Fund Fund Total $ 1,243 $ 27,233 $ 45,542 $ 1,243 $ 27,233 $ 45,542 ----------- ----------- ------------ $ 0 $ 0 $ 0 1,243 27,233 45,542 1,243 27,233 45,542 $ 1,243 $ 27,233 $ 45,542 -28- CITY OF CHUBBUCK COMBINING STATEMENT OF REVENUE AND EXPENDITURES AND CHANGES IN FUND BALANCE SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 1993 REVENUE: Donations . . . . . . . . . . . . Other . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . Total revenue . . . . . . . . . EXPENDITURES: General government . . . . . . . . Total expenditures . . . . . . EXCESS REVENUE OR (EXPENDITURES). . . TRANSFERIN . . . . . . . . . . . . . FUND BALANCE - BEGINNING . . . . . . FUND BALANCE - ENDING . . . . . . . . Road Juvenile Dedication LID #1 Referral Fund Fund Fund $ 941 $ 151 $ 543 8 151 543 949 0 0 0 151 543 949 5,006 10,417 0 $ 5,157 $ 10,960 $ 949 The accompanying notes are an integral part of these statements. -29- Health Police Insurance Training Fund Fund Total 1,125 11,958 28,506 $ 1,243 $ 27,233 $ 45,542 -30- $ 13,356 $ 13,356 1,447 2,388 $ 64 472 1,238 64 15,275 16,982 2,446 2,446 2,446 0 2,446 -2,382 15,275 14,536 2,500 2,500 1,125 11,958 28,506 $ 1,243 $ 27,233 $ 45,542 -30- CITY OF CHUBBUCK COMBINING BALANCE SHEET CAPITAL PROJECT FUNDS SEPTEMBER 30, 1993 ASSETS: Ca sh . . . . . . . . . . . . . . . . . Total assets . . . . . . . . . . . LIABILITIES: Total liabilities . . . . . . . . . FUND EQUITY: Fund balance . . . . . . . . . . . . . Total fund equity . . . . . . . . . Total liabilities and fund equity . Road Capital Projects ",.-A Parks Fire #2 Station $ 287,737 $ 45,525 $ 17,747 $ 287,737 $ 45,525 $ 17,747 $ 0 $ 0 $ 0 287,737 45,525 17,747 287,737 45,525 17,747 $ 287,737 $ 45,525 $ 17,747 The accompanying notes are an integral part of these statements. -31- Parks Dedicated Pund Total $ 5,9+2 $ 356,951 $ 5,942 $ 356,951 5,942 355,951 5,942 356,951 $ 5,942 $ 356,951 wpm CITY OF CHUBBUCK COMBINING STATEMENT OF REVENUE AND EXPENDITURES CAPITAL PROJECT FUNDS YEAR ENDED SEPTEMBER 30, 1993 The accompanying notes are an integral part of these statements. -33- Road Capital Parks Fire Projects #2 Station Fund Fund Fund REVENUE: Interest . . . . . . . . . . . . . . . . . $ 7,407 $ 1,366 $ 1,252 Donations . . . . . . . . . . . . . . . . Total revenue . . . . . . . . . . . . . 7,407 1,366 1,252 EXPENDITURES: Reimbursements . . . . . . . . . . . . . . Capital outlay . . . . . . . . . . . . 43,788 Total expenditures . . . . . . . . . . 0 0 43,788 EXCESS REVENUE OR (EXPENDITURES). . . . . . . 7,407 1,366 -42,536 OTHER FINANCING SOURCES (USES): Transfers in . . . . . . . . . . . . . . . 88,700 Transfers out . . . . . . . . . . . . . . EXCESS (SOURCES/USES) . . . . . . . . . . . . 96,107 1,366 -42,536 FUND BALANCE - BEGINNING . . . . . . . . . . 191,630 44,159 60,283 FUND BALANCE - ENDING . . . . . . . . . . . . $ 287,737 $ 45,525 $ 17,747 The accompanying notes are an integral part of these statements. -33- Parks Dedicated Fund Total $ 179 $ 10,204 324 324 503 10,528 1,204 1,204 43,788 1,204 44,992 -701 -34,464 88,700 -701 54,236 6,643 302,715 $ 5,942 $ 356,951 -34- CITY OF CHUBBUCK COMBINING BALANCE SHEET ENTERPRISE FUNDS SEPTEMBER 30, 1993 ASSETS: Cash . . . . . . . . . . . . . Accounts receivable . . . . . . . . . . . Restricted Cash: Replacement rand . . . . . . . . . . . Bond and interest reserves . . . . . . Water meter deposits . . . . . . . . . Fixed assets . . . . . . . . . . . . . . . Accumulated depreciation . . . . . . . Total assets . . . . . . . . . . . . . LIABILITIES: Accounts payable . . . . . . . . . . . . . Deposits payable . . . . . . . . . . . . . Payable from Restricted Assets: Bonds payable - current . . . . . . . . Accrued bond interest payable . . . . . Bonds payable - long term . . . . . . . . Total liabilities . . . . . . . . . . . FUND EQUITY: Retained earnings . . . . . . . . . . . . Contributed capital . . . . . . . . . . . Accumulated depreciation . . . . . . . . . Reserve for debt service . . . . . . . . . Reserve for replacement fund . . . . . . . Total fund equity . . . . . . . . . . . Total liabilities and fund equity . . . Depreciation Utilities Reserve Fund Fund $ 236,331 201,592 290,094 60,540 3,757,797 -1,882,987 $ 2,663,367 $ 17,695 60,540 $ 432,623 $ 432,623 40,000 23,400 790,000 931,635 $ 0 856,920 942,038 -357,320 290,094 432,623 1,731,732 432,623 $ 2,663,367 $ 432,623 The accompanying notes are an integral part of these statements. -35- Sewer Repairs and Replacement Fund Tonal. $ 129,019 $ 236,331 201,592 561,642 290,094 60,540 3,757,797 -1,882,987 $ 129,019 $ 3,225,009 $ 17,695 60,540 40,000 23,400 790,000 $ 0 931,635 856,920 942,038 -357,320 290,094 129,019 561,642 129,019 2,293,374 $ 129,019 $ 3,225,009 ------------------------- -36- CITY OF CHUBBUCK COMBINING STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN RETAINED EARNINGS AND RESERVES ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1993 OPERATING REVENUE: Service Charges: Sanitation . . . . . . . . . . . . . . Water . . . . . . . . . . . . . . . . . Sewer . . . . . . . . . . . . . . . . . Total operating revenue . . . . . . OPERATING EXPENSES: Personnel . . . . . . . . . . . . . . . . Personnel benefits . . . . . . . . . . . . Supplies . . . . . . . . . . . . . . . . . Purchased services . . . . . . . . . . . . Interfund expenses . . . . . . . . . . . . Depreciation . . . . . . . . . . . . . . . Total operating expenses . . . . . . . OPERATING INCOME . . . . . . . . . . . . . . NONOPERATING REVENUE (EXPENSES): Interest income . . . . . . . . . . . . . Interest expense . . . . . . . . . . . . . Total nonoperating revenue (expenses) . NETINCOME . . . . . . . . . . . . . . . . . OTHER FINANCING SOURCES (USES): Transfers from other funds . . . . . . . . Transfers to other funds . . . . . . . . . RETAINED EARNINGS - RESERVES: Balance - Beginning . . . . . . . . . . . Depreciation Utilities Reserve Fund Fund $ 435,840 548,483 607,288 1,591,611 $ 0 386,712 154,692 52,332 631,322 21,000 116,634 1,362,692 0 228,919 0 12,779 10,253 -51,363 -38,584 10,253 190,335 10,253 113,176 -115,676 1,072,355 309,194 RETAINED EARNINGS - RESERVES: Balance -- Ending . . . . . . . . . . . . . $ 1,147,014 $ 432,623 The accompanying notes are an integral part of these statements. -37- Sewer Repairs and Replacement Fund Total $ 435,840 548,1483 607,288 $ 0 1,591,611 R 386,712 154,692 52,332 631,322 21,000 116,634 1,362,692 0 228,919 5,452 28,484 -51,363 5,452 -22,879 5,452 206,040 113,176 -115,676 123,567 1,505,116 $ 129,019 $ 1,708,656 -38- CITY OF CHUBBUCK TEN YEAR SUMMARY OF TAX LEVIES SEPTEMBER 30, 1993 Year of Levy 1) Value Levy Tax 1983 $ 110,367,077 .004074 $ 452,173 1984 119,520,105 .004051 484,489 1985 121,985,145 .004322 528,969 1986 124,887,711 .004769 599,487 1987 125,907,871 .005013 633,689 1988 125,858,250 .005089 640,493 1989 125,917,949 .005295 688,999 1990 124,789,912 .006040 767,051 1991 127,017,877 .006231 795,941 1992 128,308,276 .006879 891,999 1) Levies are certified in October of the year shown. Taxes are primarily received in January and July of the subsequent year. The accompanying notes are an integral part of these statements. -39- SCOTT N. JONES, CPA KENT L. YOST, CPA, JD MORGAN J. HATT, CPA STACY L. ERICKSON, CPA ko Jones, Yost, Hatt, Erickson & Co. CFRTIFIED PUBLIC ACCOUNTANTS P.O. BOX 4987 Pocatello, Idaho 83205 Honorable Mayor and City Council Members City of Chubbuck, Idaho Report on Supplemental Schedule of Federal Financial Assistance MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants We have audited the general purpose financial statements of the City of Chubbuck, Idaho, for the year ended September 30, 1993, and have issued our report thereon dated February 11, 1994. These general purpose financial statements are the responsibility of the City of Chubbuck, Idaho. Our responsibility is to express an opinion on the general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and conduct the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose 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. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Chubbuck, Idaho, taken a$ a whole. The accompanying schedule of Federal financial assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. DONE YO , HATT/, ERICKSON Y CO. Pocatello, Idaho, February 11, 1994. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 2081233-5000 • FAX 2081233-5010 CITY OF CHUBBUCK, IDAHO SUPPLEMENTAL SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED SEPTEMBER 30, 1993 FEDERAL DEPARTMENT: Bureau of Justice Assistance GRANT: DARE (DR -11-92; DR -11-925) Catalogue No. 16.579 TOTAL AWARD: ( July 1992 to July 1993 ) . . . . . . . . . . • . . . . $ 65,000 Revenue - Fiscal year 1993 . . . . . . • . . . . . • . . $ 65,000 Expenditures . . . . . . . . . . . . . . . . . . . . . . $ 65,000 r i -41- I ko hones, Yost, Hatt, 6 �Jj Erickson & Co. SCOTT N. JONES, CPR CERTIFIED PUBLIC ACCOUNTANTS KENT L. YOST, CPA, JD P.O. BOX 4987 MORGAN J. HATT, CPA Pocatelio, Idaho 83205 STACY L. ERICKSON, CPA Honorable Mayor and City Council Members City of Chubbuck, Idaho MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants Single Audit Report on Compliance With Specific Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions In connection with our audit of the September 30, 1993, general purpose financial statements of the City of Chubbuck, Idaho, and with our study and evaluation of the City's internal control systems used to administer Federal financial assistance programs, as required by Office of Management and Budget Circular A-128, Audits of State and Local Governments, we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended September 30, 1993. As required by OMB Circular A-128, we completed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Chubbuck, Idaho, compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Chubbuck, Idaho, had not complied, in all material respects, with those requirements. This report is intended for the information of the City of Chubbuck, Idaho, and its Federal audit cognizant agency. This restriction is not intended to limit the distribution of this report, which is a matter of public record. DONE YOS , HATT,RiMSON CO. y Pocatello, Idaho,_ February 1 1 , 1994. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 2081233-5000 • FAX 2081233-5010 I' l r. r. I, jkn Jones, Yost, Hatt, 16 Erickson & Co. SCOTT N. JONES, CPA CERTIFIED PUBLIC ACCOUNTANTS KENT L. YOST, CPA, JD P.O. BOX 4987 MORGAN J. HATT, CPA Pocatello, Idaho 83205 STACY L. ERICKSON, CPA Honorable Mayor and City Council Members City of Chubbuck, Idaho MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants Single Audit Report on Compliance With General Requirements Applicable to Federal Financial Assistance Programs We have audited the general purpose financial statements of the City of Chubbuck, Idaho, as of and for the year ended September 30, 1993, and have issued our report thereon dated February 11, 1994. We have applied procedures to test the City of Chubbuck's compliance with the following requirements applicable to its Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended September 30, 1993. Political Activity Civil Rights Cash Management Federal Financial Reports Allowable Costs Cost Principles Drug -Free Workplace Administrative Requirements (Procurement) Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those requirements. This report is intended for the information of City management, and its Federal cognizant agency. However, this report is a matter of public record and its distribution is not limited. JONESr YO 'HATT, ERICKSON CO. Pocatello, Idaho, February 11, 1994. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 9 PHONE 2081233-5000 • FAX 2081233-5010 r IL, r. r. I ko Jones, Yost, Hatt, 6 Erickson & Co. SCOTT N. JONES, CPA J) CERTIFIED PUBLIC ACCOUNTANTS KENT L. YOST, CPA, JD P.O. BOX 4987 MORGAN J. HATT, CPA Pocatello, Idaho 83205 STACY L. ERICKSON, CPA Honorable Mayor and City Council Members City of Chubbuck, Idaho MEMBERS OF American Institute of Certified Public Accountants Idaho Soc{ety of Certified Public Accountants Single Audit Report on Internal Control Structure Used in Administering Federal Financial Assistance Programs - No Major Programs We have audited the general purpose financial statements of the City of Chubbuck, Idaho, as of and for the year ended September 30, 1993, and have issued our report thereon dated February 11, 1994. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and conduct the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and conducting our audit for the year ended September 30, 1993, we considered the internal control structure of the City of Chubbuck, Idaho, in order to determine our auditing procedures for the purpose of expressing our opinions on the City of Chubbuck, Idaho's general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated February 11, 1994. Management of the City of Chubbuck, Idaho, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 416 SOUTH 4TH AVENUE + P.O. BOX 4987 • POCATELLO, IDAHO 83205 9 PHONE 2081233-5000 • FAX 2081233-5010 F i r. Honorable Mayor and City Council Members Page 2 For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following categories: Internal Accounting Controls Cash Payroll Grants Budgets General Requirements Revenues Exnenditures Fixed Assets Purchasing Administrative Controls Drug -Free Workplace Political Activity Civil Rights Cash Management Federal Financial Reports Specific Requirements Types of Services Eligibility Reporting Cost Allocation For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended September 30, 1993, the City of Chubbuck, Idaho, had no major Federal financial assistance programs and expended 100 percent of its total Federal financial assistance under the following nonmajor Federal financial assistance program: Project DARE. We conducted tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. I I k I' e I} i It i I' 1 I 'k I'D Honorable Mayor and City Council Members Page 3 Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of conducting their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. This report is intended solely for the use of the City of Chubbuck, Idaho, its Federal audit cognizant agency, and other Federal agencies, and should not be used for any other purpose. F-��--1. DONE , OS , HAT`S, ERICKSON & CO. Pocatello, Idaho, February 11, 1994. 11 I't