HomeMy Public PortalAbout2013-2014 Audit Moab Financial Statements v3ty Corporation
County, Utah
CIAL REPORT
For theJune 30, 2014
Moab City Corporation
TABLE OF CONTENTS
June 30, 2014
Beginning
on page
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS 3
BASIC FINANCIAL STATEMENTS 13
Government -wide Financial Statements:
Statement of Net Position 15
Statement of Activities 16
Fund Financial Statements:
Balance Sheet - Governme ds 18
Statement of Revenu penditures, and nges
in Fund Balances vernmental Fun. 19
Reconciliation of the Bala we tal
Funds to the Statement of
Reconciliation of the Statement of R es, Expen
and Changes in Fund Balances of ernmental
Funds to the Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Funds . 23
Statement of Cash Flows - Proprietary Funds 24
Notes to Financial Statements 26
REQUIRED SUPPLEMENTARY INFORMATION 41
Notes to Required Supplementary Information 43
20
21
22
Schedule of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual - General Fund
(Continued on following page)
44
Moab City Corporation
TABLE OF CONTENTS
June 30, 2014
OTHER REPORTS
Report on Internal control over Financial Reporting and on
Compliance and Other Matters based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
Beginning
on page
47
Independent Auditors' Report on Compliance in Accordance
with the State Compliance Audit Guide 49
a Larson
ANCERTIFIED PUBLIC PURIC &CCOIIMITI
INDEPENDENT AUDITORS' REPORT
Honorable Mayor
Members of the City Council
Moab, Utah
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of Moab City, Utah (herein
referred to as the "City"), as of and for the year ended June 30, 2014, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements as listed in the table
of contents.
Management's Responsibility for ancial Statements
Management is responsible fo
accordance with accounting
the design, implementatio
presentation of financia
error.
Auditor's Responsibility
Our responsibility is to express opinions on - fin
our audit in accordance with auditing s . rds gen
Those standards require that we pla d perform
whether the financial statements are free from m
prep
ples gene
d maintenan
ements that ar
n and fair presentation of these financial statements in
accepted in the United States of America; this includes
of internal control relevant to the preparation and fair
e from material misstatement, whether due to fraud or
An audit involves performing procedures to ob
the financial statements. The procedures sel
assessment of the risks of material misstatemen
error. In making those risk assessments, the audito
preparation and fair presentation of the financial statement
appropriate in the circumstances, but not for the purpose opressi
the entity's internal control. Accordingly, we express no such opi
the appropriateness of accounting policies used and the re
estimates made by management, as well as evaluating the
statements.
ial statements based on our audit. We conducted
accepted in the United States of America.
it to obtain reasonable assurance about
ent.
amounts and disclosures in
s judgment, including the
hether due to fraud or
rol relevant to the entity's
audit procedures that are
opinion on the effectiveness of
An audit also includes evaluating
ableness of significant accounting
erall presentation of the financial
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of Moab City, as of June 30, 2014, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Larson & Company
765 North Main, Spanish Fork, Utah 84660
Main: (801) 798-3545 Fax: (801) 798-3678
www.larsco.com
1
Member of
CPAMERICA
INT#RNATIONAL
—* Crowe Hawalh I,IlkmaboRi
In accordance with Government Auditing Standards, we have also issued a report dated October 31,
2104 on our consideration of Moab City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering Moab City's internal control over financial
reporting and compliance.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and other required supplementary information on pages 3-11 and 43-44 be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical c. ext. We have applied certain limited procedures to the required
supplementary information in accor• ith auditing standards generally accepted in the United States
of America, which consisted of i -s . anagement about the methods of preparing the information
and comparing the informatio consiste with management's responses to our inquiries, the basic
financial statements, and ot► owledge w: stained during our audit of the basic financial statements.
We do not express an ion or provid: ny assurance on the information because the limited
procedures do not provi•. with sufficient :ence to express an opinion or provide any assurance.
Larson & Company, PC
Spanish Fork, Utah
October 31, 2014
2
SCUSSION AND ANALYSIS
3
entionally left blank.
4
Moab City Corporation
Management's Discussion and Analysis
June 30, 2014
As management of Moab City Corporation (the City), we offer readers of the City's financial
statements this narrative overview and analysis of financial activities of the City for the fiscal year
ended June 30, 2014.
FINANCIAL HIGHLIGHTS
*Total net position for the City as a whole increased by $511,621.
*Total unrestricted net position for the City as a whole increased by $613,503.
*Total net position for governmental activities increased by $253,733.
*Total net position for busine s-type activities increased by $257,887.
BASIC FINANCIAL STAT
This discussion and ana
Moab City Corporation.
wide financial statements,
is intended to
basic financi-
d fin
Government -wide financial sta ements.
provide readers with a broad overview City's m, ces, in a manner similar to a private -sector
business.
e as an introduction to the basic financial statements of
tements comprise three components: (1) government
ents, and (3) notes to the financial statements.
The statement of net position presents inform
liabilities, and deferred inflows, with the diffe
increases or decreases in net position may serve
of the City is improving or deteriorating.
ent-wide financial statements are designed to
Ci
The statement of activities presents information showing . the
the fiscal year reported. All changes in net position are reported a
giving rise to the change occurs, regardless of the timing of rela
expenses are reported in this statement for some items that will o
fiscal periods.
C.
deferred outlfows,
net position. Over time,
r the financial position
osition changed during
n as the underlying event
cash flows. Thus revenues and
result in cash flows in future
Both of the government -wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The statement of activities is presented on two pages. The first page
reports the extent to which each function or program is self-supporting through fees and
intergovernmental aid. The second page identifies the general revenues of the City available to cover
any remaining costs of the functions or programs.
5
Moab City Corporation
Management's Discussion and Analysis
June 30, 2014
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City also uses fund
accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and proprietary funds.
Governmental funds. These funds are used to account for the same functions reported as governmental
activities in the government -wide financial statements. Governmental fund financial statements focus
on near -term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year.
Because of the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for government funds with similar
information presented for governmen .1 activities in the government -wide financial statements. By
doing so, readers may better under
decisions. Both the government
revenues, expenditures, and c
comparison between gove
e long-term impact of the government's near -term financing
e sheet and the government fund statement of the
lances provide reconciliation to facilitate this
overnmental activities.
The City maintains twnds, the general fund and the capital projects fund.
The City adopts an annual ap. dg general fund. A budgetary comparison schedule
has been provided to demonstrate egal co c h the adopted budget for the general fund.
The basic governmental fund financia
Contents.
ements ca - d later in this report; see Table of
Proprietary funds. The City maintains one typ
the same functions presented as business -type a
The City uses two enterprise fund to account for the
activities.
funds are used to report
e financial statements.
wer and storm drain
Proprietary funds provide the same type of information as the go ent-wide financial statements,
only in more detail. The enterprise funds are considered major s of the City.
The proprietary fund financial statements can be found later in this report; see Table of Contents.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to
the financial statements are reported later in this report; see Table of Contents.
Other information. In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the City.
6
Moab City Corporation
Management's Discussion and Analysis
June 30, 2014
FINANCIAL ANALYSIS
Moab City Corporation's Net Position
Governmental
Activities
Current and other assets
Net capital assets
Total assets
Current liabilities
Long-term liabilities
Total liabilities
Net position:
Net investment in
capital assets
Restricted
Unrestricted
Total net position
Current Previous
Year Year
Business -type
Activities
Current Previous
Year Year
Total
Current
Year
Total
Previous
Year
$ 4,155,249 3,716,740 4,721,759 4,453,360 8,877,007 8,170,100
17,511,397 18,026,870 6,485,584 6,479,853 23,996,980 24,506,723
21,666,645 21,743,610 11,207,342 10,933,213 32,873,988 32,676,823
670,061
6,050,861
,720,922
73,308 57,066 820,532 727,128
- 5,643,000 6,050,861
73,308 57 066 6,463,532 6,777,988
76,010 6,485,584 6,479,853 18,353,980 18,455,863
80 836 2,413,127 2,413,127 2,493,963 2,493,963
42 2,235,324 1,983,167 5,562,513 4,949,010
11,134,035 10,876,147 26,410,456 25,898,835
As noted earlier, net position may seryver time as a use
assets exceeded total liabilities and deferred i
increase of $511,621 from the previous year.
in private sector terms.
Total unrestricted net position at the end of the year
$613,503 from the previous year. Unrestricted net positio
day-to-day operations without constraints established by
legal requirements.
dicator of financial position. Total
of the year by $26,410,456, an
net income for the year,
esents an increase of
available to finance
, enabling legislation, or other
The amount of current and other assets represent the amounts of c. h and receivables on hand at the
end of each year. Other liabilities are the amounts of current and other liabilities due, at year end, for
goods and services acquired.
Changes in capital assets are the result of the difference, in the current year, of the cost of acquisition
of capital assets and any depreciation charges on capital assets. Change in long-term debt is the
difference in the amount of debt issued and that which has been paid during the year.
7
Moab City Corporation
Management's Discussion and Analysis
June 30, 2014
FINANCIAL ANALYSIS (continued)
Moab City Corporation's Change in Net Position
Governmental Business -type
Activities Activities
Program revenues:
Charges for services
Operating grants
Capital grants
General revenues:
Property taxes
Sales tax
Other taxes
Other revenues
Total revenues
Expenses:
General government
Public safety
Highways and improvements
Parks and recreation
Interest on long-term debt
Water, sewer and storm drain
Total expenses
Excess (deficiency) before
transfers and contributions
Transfers
Change in net position
Total Total
Current Previous Current Previous Current Previous
Year Year Year Year Year Year
$ 1,762,655 1,582,289 1,568,967 1,519,900 3,331,622 3,102,189
214,807 207,936 - 214,807 207,936
575,877 376,989 12,346 588,223 376,989
1,491,497 - 1,559,020 1,491,497
4,391,831 - 4,653,190 4,391,831
308,659 274,057 191,493 496,629 500,152
8,359,200 1,855,370 1,711,394 10,843,489 10,070,594
1,176 - 2,229,657 2,151,176
1 - 2,363,296 2,354,181
- 2,253,083 2,356,172
- 2,256,605 2,085,235
- 41,745 41,613
,483 1,103, 711 1,187,483 1,103, 711
711 10,331,869 10,092,088
(156,267) (629, 511,621 (21,494)
(410,000) (410,000) 10,000 10, 00
$ 253,733 (219,176) 257 197,683 511,621 (21,494)
Total revenues increased by $772,895, while total expenses increased by $239,781. The total net
increase for the year of $511,621 is an increase from the previous year of $533,114.
Governmental activities revenues of $8,988,119 is an increase of $628,919 from the previous year.
This is primarily due to an increase in revenues from grants compared to the previous year.
Governmental activities expenses of $9,144,386 is an increase of $156,009 from the previous year.
While spending within the the highways and improvements department decreased during the year,
spending within all other departments increased.
Business -type activities revenues of $1,855,370 is an increase of $143,976 from the previous year.
Business -type activities expenses of $1,187,483 is an decrease of $83,772 from the previous year.
8
Moab City Corporation
Management's Discussion and Analysis
June 30, 2014
BALANCES AND TRANSACTIONS OF INDIVIDUAL FUNDS
Some of the more significant changes in fund balances and fund net position and any restrictions on
those amounts is described below:
General Fund
The fund balance of $2,185,911 reflects an increase of $414,561 from the previous year. Total
revenues increased by $481,944. Tax revenues increased by $328,882. Revenue from charges for
services increased by $42,377. All other revenues increased by $110,685.
Total expenditures, excluding transfers out, decreased by $69,251. Expenditure changes from the
previous year, by department, were: general government increased by $19,823; public safety
decreased by $2,430; streets and high ays decreased by $112,853; and parks and recreation increased
by $14,849. Capital outlay expend' ncreased by $6,057. Expeditures for princpal increased by
$5,748, while expenditures for i t . ased by $445.
The fund balance restricte$80,836. The unassigned fund balance amounts to
$2,105,075.
Capital Projects Fund
The fund balance of $1,521,
excluding transfers, increased by :6,485
Expenses increased during the year by $ ,
Water and Sewer Fund
Net income amounted to $165,162, which is a
income. The amount restricted for constructio
$1,118,954.
Storm Drain Fund
The change in net position (net income) was $92,725. U
$1,116,370.
$3,146 from the previous year. Total revenue,
year, revenues from grants were lower.
GENERAL FUND BUDGETARY HIGHLIGHTS
326 fr e previous year net
t position amounts to
n amounts to
Revenues for the current year, exclusive of transfers and fund balance appropriations, were originally
budgeted in the amount of $7,738,786. Budgeted revenues were amended during the year to
$7,776,228. Actual revenues amounted to $8,217,789.
Expenditures for the current year, excluding transfers, were originally budgeted in the amount of
$8,010,725. Budgeted expenditures were amended during the year to $8,048,067. Actual expenditures
amounted to $7,439,892.
9
Moab City Corporation
Management's Discussion and Analysis
June 30, 2014
CAPITAL ASSETS AND DEBT ADMINISTRATION
Moab City Corporation's Capital Assets (net of depreciation)
Governmental Business -type
Activities Activities
Net Capital Assets:
Land and water rights
Buildings
Improvements other
Total Total
Current Previous Current Previous Current Previous
Year Year Year Year Year Year
$ 476,884 476,884 262,935 262,935 739,819 739,819
10, 341,483 10,644,403
- 10,341,483 10,644,403
than buildings 2 " 2,155 2,205,096 - 2,032,155 2,205,096
Machinery and equipment 838 1,900,046 413,911 430,451 2,134,748 2,330,497
Infrastructure ,5 ' : 2,566,147 - 2,577,978 2,566,147
Water system 2,244,897 2,320,273 2,244,897 2,320,273
Sewer system 3,172,680 3,292,842 3,172,680 3,292,842
Work in progress 362,05' 234,295 391,160 173,351 753,219 407,646
Totals $ 17 51 18,026,870 6,485,584 6,479,853 23,996,980 24,506,723
The total amount of capital assets, net ofof $23,996,980 is a decrease of $509,743 from
the previous year.
Governmental activities capital assets, net of • .+.� ' •n, 0 7,511,397 is a decrease of $515,474
from the previous year.
Business -type activities capital assets, net of depre , of $. ., s crease of $5,731 from
the previous year.
Additional information regarding capital assets may be fo d in t - es to financial statements.
Moab City Corporation's Outstanding Debt
Governmental activities:
2011 Equipment Lease
2009 Equipment Lease
2010 Refinance Vehicles
2003 Sales Tax Revenue
2009 Sales Tax Revenue
Current Previous
Year Year
$ 21,458
58,695
63,708
1,452,000 1,525,000
4,191,000 4,382,000
Total outstanding debt $ 5,643,000 6,050,861
Additional information regarding long-term liabilities may be found in the notes to financial
statements.
10
Moab City Corporation
Management's Discussion and Analysis
June 30, 2014
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
No significant economic changes that would affect the City are expected for the next year. Budgets
have been set on essentially the same factors as the current year being reported.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Moab City Corporation's
finances for all those with an interest in the City's finances. Questions concerning any information
provided in this report or requests for additional financial information should be addressed to: City
Recorder, 217 East Center Street, Moab, UT 84532.
11
tentionally left blank.
12
IAL STATEMENTS
13
0
T•ge inten ' left blank.
$,Ft
14
Moab City Corporation
STATEMENT OF NET POSITION
June 30, 2014
ASSETS:
Current assets:
Cash and cash equivalents
Accounts receivable, net of allowances
Due from other governments
Other current assets
Total current assets
Non -current assets:
Restricted cash and cash equivalents
Capital assets:
Not being depreciated
Net of accumulated depreciati
Total non -current assets
Total assets
LIABILITIES:
Current liabilities:
Accounts payable and acc
Customer security deposits
Accrued interest payable
Capital leases due within one year
Revenue bond due within one year
Total current liabilities
Non -current liablities:
Compensated absences
Capital leases due after one year
Revenue bonds due after one year
Total non -current liablities
Total liabilties
NET POSITION:
Net investment in capital assets
Restricted:
Class C roads
Construction
Unrestricted
Total net position
Total liabilities and net position
Governmental Business -type
Activities Activities
$ 3,301,175
100,272
640,165
27,747
3,859,739
113,620
Total
7,160,914
213,892
640,165
27,747
4,069,358 3,973,359 8,042,717
85,890 748,400 834,290
838,943 654,096 1,493,038
16,672,454 5,831,488 22,503,942
17,597,287 7,233,984 24,831,271
$ 21,666,645 11,207,342 32,873,988
309,142
27,225
191,000
75,000
11,868,397
80,836
3,327,189
15,881
3,675
325,024
3,675
27,225
191,000
75,000
621,924
464,608
4,000,000
1,377,000
5,841,608
73,308 6,463,532
6,485,584 18,353,980
- 80,836
2,413,127 2,413,127
2,235,324 5,562,513
15,276,421 11,134,035 26,410,456
$ 21,666,645 11,207,342 32,873,988
The notes to the financial statements are an integral part of this statement.
15
Moab City Corporation
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2014
Net
(Expense)
Charges Operating Capital Revenue
for Grants and Grants and (To Next
Expenses Services Contributions Contributions Page)
FUNCTIONS/PROGRAMS:
Primary government:
Governmental activities:
Administration $ 2,229,657 1,292,046 54,218 (883,392)
Public safety 2,363,296 21,578 28,104 - (2,313,613)
Streets and highways 2,253,083 - 186,602 - (2,066,480)
Parks and recreation 56,605 449,030 100 521,659 (1,285,816)
Interest on long-term debt 745 - (41,745)
Total governmental activiti
Business -type activities.
Water and sewer uti
Storm drain utility
Total business -type activities
1,762,655 214,807 575,877 (6,591,047)
1,428,811 - 259,894 515,999
140,156 - 12,346 137,725
272.240 653.725
Total primary government $ 10 .69 214,807 848,117 (5,937,323)
(The statement of activities
continues on following page)
The notes to the financial statements are an integral part of this statement.
16
Moab City Corporation
STATEMENT OF ACTIVITIES (continued)
For the Year Ended June 30, 2014
CHANGES IN NET POSITION:
Net (expense) revenue
(from previous page)
General revenues:
Sales tax
Other taxes
Unrestricted investment earnings
Miscellaneous
Transfers in (out)
Governmental Business -type
Activities Activities
Total
$ (6,591,047) 653,725 (5,937,323)
1,559,020 1,559,020
4,653,190 4,653,190
30,398 14,163 44,561
192,174 192,174
410,000
(410,000)
Total general revenues and transfer 6,844,781 (395,837) 6,448,944
Change in net position 253,733 257,887 511,621
Net position - beginning 15,022,688 10,876,147 25,898,835
Net position - ending $ 15,276,421 11,134,035 26,410,456
The notes to the financial statements are an integral part of this statement.
17
Moab City Corporation
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2014
Capital Other Total
General Projects Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and cash equivalents $ 1,610,705 1,548,724 141,746 3,301,175
Accounts receivable, net of allowances 740,437 740,437
Other current assets 27,747 27,747
Restricted cash and cash equivalents 85,890 85,890
TOTAL ASSETS
$ 2,464,779 1,548,724 141,746 4,155,249
LIABILITIES
Accounts payable $ 90,045 16,465 2,711 109,220
Accrued liabilities
TOTAL LIABILITIES
FUND BALANCES:
Restricted for:
Class C roads
Assigned for:
Capital projects
USU Set -aside
Recreation
Youth city council
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
188,822 11,100 199,922
278.867 27.564 2.711 309.142
80,836
- 1,296,159
- 225,000
The notes to the financial statements are an integral part of this statement.
18
80,836
1,296,159
225,000
135,955 135,955
3,081
2,105,075
3,081
139 036 3,846,106
141,746 4,155,249
Moab City Corporation
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the Year Ended June 30, 2014
Capital Other Total
General Projects Governmental Governmental
Fund Fund Funds Funds
REVENUES:
Taxes:
Sales $ 1,559,020 1,559,020
Other taxes 4,653,190 4,653,190
Licenses and permits 252,523 - 252,523
Intergovernmental revenues 268,925 439,300 82,459 790,684
Charges for services 1,304,679 151,585 1,456,263
Fines and forfeitures 53,869 - 53,869
Interest 29,147 1,695 (444) 30,398
Miscellaneous revenue 96,438 53,524 42,211 192,174
Total revenues 8,217,789 494,519 275,811 8,988,119
EXPENDITURES: General government 1,828,817 1,828,817
Public safety 2,281,851 - 2,281,851
Highways and public imp � 2,014,772 2,014,772
Parks, recreation and public . -• 1,135,391 341,240 407,697 1,884,327
Capital outlay 29,215 493,100 522,315
Debt service:
Prinicpal ' .1 264,000 407,861
Interest 5,' 38,125 44,110
Total expenditures ' ' 1 3 407 697 8,984,053
Excess (Deficiency) of Revenues over
(Under) Expenditures
4.066
Other Financing Sources and (Uses):
Transfers in 410,000 :00 134,536 1,183,336
Transfers (out) (773,336) - (773,336)
Total other financing sources and (uses) (363,336) 638,800 134,536 410,000
Net Change in Fund Balances 414,561 (3,146) 2,650 414,066
Fund balances - beginning 1,771,350 1,524,305 136,385 3,432,040
Fund balances - end of year $ 2,185,911 1,521,159 139,036 3,846,106
The notes to the financial statements are an integral part of this statement.
19
Moab City Corporation
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
For the Year Ended June 30, 2014
Total Fund Balances for Governmental Funds
Total net position reported for governmetnal activities in the statement
is different because:
Capital assets used in governmental funds are not financial resources and
therefore are not reported in the funds.
$ 3,846,106
Capital assets, at cost 24,910,253
Less accumulated depreciation (7,398,856)
Net capital assets 17,511,397
Long-term debt, for funds other rprise funds are recorded in
the government -wide stateme n. the fund statements.
General long -ter (5,643,000)
Interest accru t not yet paid ng-term debt (27,225)
Compensated absen (410,857)
Total Net Position of Governmetnal Ac
$ 15,276,421
The notes to the financial statements are an integral part of this statement.
20
Moab City Corporation
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2014
Net Change in Fund Balances - Total Governmental Funds $ 414,066
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities, assets with a material cost are
capitalized and the cost os allocated over their estimated useful
lives and reported as depreciation expenses.
Capital outlays 522,315
Depreciation expense (1,037,789)
Net (515,474)
Repayment of debt prin ' s an expendi in the governmental funds, but
the repayment reduce _-term liabilities he statement of net position.
Long-term debt pri 1 repaym _ 407,861
Accrued interest for long-te . - . not
nd expenditure for
the current period, while it is recorded iof activities.
Change in accrued interest 2,365
Compensated absences expenses reported in state • ' ivi
not require the use of current financial resour nd are port
expenditures in governmental activites.
Change in compensated absences liability w (55,085)
Change in Net Position of Governmental Activities $ 253,733
The notes to the financial statements are an integral part of this statement.
21
Moab City Corporation
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
June 30, 2014
Water & Sewer Storm Drain
Fund Fund Total
ASSETS:
Current assets:
Cash and cash equivalents $ 2,750,423 1,109,315 3,859,739
Accounts receivable, net 100,416 13,204 113,620
Total current assets 2,850,839 1,122,520 3,973,359
Non -current assets:
Resricted cash and cash equivalents 748,400 748,400
Capital assets:
Not being depreciated 629,405 24,691 654,096
Net of accumulated depreciation 5,831,488 5,831,488
Total non -current assets 7,209,293 24,691 7,233,984
Total assets
LIABILITIES:
Current liabilities:
Accounts payable
Customer security deposi
Total current liabilities
Non -current liablities:
Compensated absences
Total non -current liabilities
Total liabilities
NET POSITION:
Net investment in capital assets
Restricted for:
Construction
Unrestricted
Total net position
Total liabilities and net position
$ 10,060,132 1,147,211 11,207,342
$ 9,732 6,150 15,881
3,675
13,407
3,675
6,150 19,556
6,150 73,308
24,691 6,485,584
,127 2,413,127
8,954 1,116,370 2,235,324
2,974 1,141,061 11,134,035
$ 10,060,132 1,147,211 11,207,342
The notes to the financial statements are an integral part of this statement.
22
Moab City Corporation
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION - PROPRIETARY FUNDS
For the Year Ended June 30, 2014
Operating income:
Charges for sales and service
Connection fees
Other operating income
Total operating revenue
Water & Sewer Storm Drain
Fund Fund Total
$ 1,265,191 140,156 1,405,347
17,210 17,210
146,410 146,410
1,428,811 140,156 1,568,967
Operating expenses:
Personnel services 321,111 321,111
Utilities 99,085 99,085
Repair & maintenance 86,459 14,777 101,236
Other supplies & expenses 358,576 358,576
Insurance expense 1,560 1,560
Depreciation expense 305,915 305,915
Total operating expense 1,172,706 14,777 1,187,483
Net operating income (1o,256,105 125,380 381,485
Non -operating income (ex
Impact fees 259,894 - 259,894
Interest income 14,163 - 14,163
Transfers in (out) (365,000) (45,000) (410,000)
Total non -operating income (expense) 90 943 (45,000) (135,943)
Income (loss) before capital contributions _ 165,162 80,380 245,542
Capital contributions
Change in net position
Net position, beginning
Net position, ending 2,974 1,141,061 11,134,035
12,346 12,346
92,725 257,887
1,048,336 10,876,147
The notes to the financial statements are an integral part of this statement.
23
Moab City Corporation
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
For the Year Ended June 30, 2014
Cash flows from operating activities:
Cash received from customers - service
Cash paid to suppliers
Cash paid to employees
Net cash provided (used) in operating activities
Cash flows from noncapital financing activities:
Change in customer deposits
Net interfund activity
Net cash provided (used) in
noncapital financing activities
Cash flows from capital and
related financing activities:
Cash from capital grant
Cash from impact fees
Cash payments for cap
Net cash provided (used) i
and related financing acti
Cash flows from investing activities:
Cash received from interest earned
Net cash provided (used) in investing ac ties
Net increase (decrease) in cash
Cash balance, beginning
Cash balance, ending
Cash reported on the statement of net position:
Cash and cash equivalents
Non -current restricted cash
Total cash and cash equivalents
Water & Sewer
Fund
$ 1,432,512
(545,234)
(311,039)
Storm Drain
Fund
139,965
(8,627)
Total
1,572,477
(553,862)
(311,039)
576.238 131.338 707.576
(425)
(365,000)
(425)
(45,000) (410,000)
(365,425) (45,000) (410,425)
259,894
(312,859)
12,346 12,346
259,894
1,213 (311,646)
(52,965) 13,559 (39,406)
$ 0,423
8,400
14,163
14.163
99,896 271,908
,009,419 4,336,231
4.608.139
1,109,315 3,859,739
748,400
$ 3, 98,823 1,109,315 4,608,139
The notes to the financial statements are an integral part of this statement.
24
Moab City Corporation
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (continued)
For the Year Ended June 30, 2014
Reconciliation of Operating Income to Net
Cash Provided (Used) in Operating Activities:
Net operating income (loss)
Adjustments to reconcile operating
income or (loss) to net cash provided (used)
in operating activities:
Depreciation and amortization
Changes in assets and liabilities:
(Increase) decrease in rece' s 3,701 (191) 3,509
Increase (decrease) in p. s 10,517 6,150 16,667
Water & Sewer Storm Drain
Fund Fund Total
$ 256,105 125,380 381,485
305,915 305,915
Net cash provided (use
$ 576,238 131,338 707,576
The notes to the financial statements are an integral part of this statement.
25
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1-A. Reporting entity
Moab City Corporation (the City), a municipal corporation located in Grand County, Utah, operates under
a Mayor -Council form of government. The accompanying financial statements present the financial
activities of the City.
1-B. Government -wide and fund financial statements
Government -wide Financial Statements
The government -wide financial statem
of changes in net position report inf
government and its component u
from these statements. Govern
intergovernmental revenues
significant extent on fees
or
l activi
eported sep
arges for sup
ts, consisting of the statement of net position and the statement
n on all of the non -fiduciary activities of the primary
ost part, the effect of inter -fund activity has been removed
which normally are supported by taxes and
ely from business -type activities, which rely to a
The statement of net positio , orts the cialosition of the governmental and business -type
activities of the City at year -en
The statement of activities reports the ex
connected with the functional program.
portions of a fund or summarize more than one
associated with a distinct functional activity. Di
specific function or segment. Indirect expenses
applicable function. Program revenues include (1
or directly benefit from goods, services, or privilege p
grants and contributions that are restricted to meeting th
particular function or segment. Taxes and other items not
reported instead as general revenues.
Fund Financial Statements
nction offset by
ly of similar
e expenses
those t
program revenues directly
activities and may include
and program revenues
e clearly identifiable with a
e included in the
ants who purchase, use,
n or segment and (2)
requirements of a
ong program revenues are
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
if any, even though the latter are excluded from the government -wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statement.
1-C. Measurement focus, basis of accounting and financial statement presentation
The financial statements of the City are prepared in accordance with generally accepted accounting
principles (GAAP).
26
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
1-C. Measurement focus, basis of accounting and financial statement presentation (continued)
The government -wide statements are reported using the economic resources measurement focus and the
accrual basis of accounting, generally including the reclassification of internal activity (between or within
funds). However, internal eliminations do not include utility services provided to City departments or
payments to the general fund by other funds for providing administrative and billing services for such
funds. Reimbursements are reported as reductions to expenses. Proprietary and any fiduciary fund
financial statements are also reported using this same focus and basis of accounting although internal
activity is not eliminated in these statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of . ccounting. Revenues are recognized as soon as they are both
measurable and available. Revenues sidered to be available when they are collectible within the
current period or soon enough the r liabilities of the current period. The City considers
revenues to be available if the ollecte hin 60 days of the end of the current fiscal period.
Expenditures generally are r ed when a 1 lity is incurred, as under accrual accounting. However,
debt service expenditures ell as expendi s related to compensated absences and claims and
judgments, are recorded when payme sue.
Sales taxes, intergovernmenta
considered to be susceptible to accrua and
period. Only the portion of special assess
considered to be susceptible to accrual
considered to be measurable and available only
, if any,
enue of th
Proprietary funds distinguish operating revenue
income and expense reported in proprietary fund
expenses related to the primary, continuing operations
proprietary funds are charges to customers for sales or s rvic
of providing goods or services, including administrative exes an
revenues and expenses are classified as non -operating in the financ
ssociated with the current fiscal period are all
recognized as revenues of the current fiscal
ivable within the current fiscal period is
t period. All other revenue items are
ived by the government.
Policy regarding use of restricted resources
ting items. Operating
se revenues and
rating revenues for
ting expenses are the costs
ecition of capital assets. Other
atements.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as needed. Restricted assets and liabilities payable
from restricted assets current in nature are reported with current assets and current liabilities. Restricted
assets, non -current reports assets restricted for acquisition or construction of non -current assets, or are
restricted for liquidation of long-term debt.
27
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
1-D. Fund types and major funds
Governmental funds
The City reports the following major governmental funds:
The general fund is the government's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The capital projects fund accounts for financial resources used for the acquisition or construction of the
capital facilities of the City (other than those of the enterprise funds).
The City reports the following as no major governmental funds:
The recreation fund accounts for v and expenditures for the activities relation to recreation.
The youth city council fund nts for reve s and expenditures for activities with the youth city
council.
Proprietary funds
The City reports the following major pro r ds:
The water and sewer fund is used to ac t for the ac . f water and sewer utilities.
The storm drain fund is used to account for the
1-E. Assets, Liabilities, and Net Position or Eq
1-E-1. Deposit and Investments
enditur the storm drain utility.
Investments are reported at fair value. Deposits are reported at cost
Investments of the City are accounts at the Utah Public Treasurer
information is contained in Note 2.
1-E-2. Cash and Cash Equivalents
ch approximates fair value.
estments Fund. Additional
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from the date of acquisition.
1-E-3. Receivables and Payables
Accounts receivable other thanintergovernmental receivables are from customers primarily for utility
services. Intergovernmental receivables are considered collectible. Customer accounts are reported net of
an allowance for uncollectible accounts. The allowance amount is estimated using accounts receivable
past due more than 90 days.
28
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
1-E. Assets, Liabilities, and Net Position or Equity (continued)
1-E-3. Receivables and Payables (continued)
During the course of operations, there may be transactions occur between funds that are representative of
lending/borrowing arrangements outstanding at year-end. These are reported as either due to or due from
other funds.
1-E-4. Restricted Assets
In accordance with certain revenue bond covenants, resources may be required to be set aside for the
repayment of such bonds, and, on occasion, for the repair and maintenance of the assets acquired with the
bond proceeds. These resources are cla ified as restricted assets on the balance sheet because of their
limited use. Most capital grant agree
Unspent resources of this nature
above involve a reported restri
andate that grant proceeds be spent only on capital assets.
ified as restricted. The limited use resources described
and net position.
Unspent proceeds of bon. ed to finance ital assets are also reported as restricted cash
1-E-5. Inventories and Pre
Inventories in governmental funds are not
supplies for consumption. Such supplies
material, are stated at the lower of cost
quired as
arket, usin
e consist of immaterial amounts of expendable
eded. Proprietary fund inventories, where
t-in, first -out basis.
Prepaid items record payments to vendors that i e rting a e reported on the
consumption basis. Both inventories and prepa is are rl government -wide and
fund financial statements.
1-E-6. Capital Assets
Capital assets includes property, plant, equipment, and infrastruc ets (e.g., roads, bridges,
sidewalks, and similar items), and are reported in the applicable g rnmental or business -type activities
columns in the government -wide financial statements. Capital asse re defined by the government as
assets with an initial, individual cost of $5,000 and an estimated useful life in excess of two years. Such
assets are recorded at historical cost or at estimated historical cost if purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of donation. Infrastructure is
depreciated.
The cost of normal maintenance and repairs that does not add to the value of an asset or materially extend
the assets' life is not capitalized. Major outlays for capital assets and improvements are capitalized as
projects are constructed. Interest incurred during the construction phase of capital assets of business -type
activities is included as part of the capitalized value of the assets constructed.
29
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
1-E. Assets, Liabilities, and Net Position or Equity (continued)
1-E-6. Capital Assets (continued)
Upon retirement or disposition of capital assets, the cost and related accumulated depreciation are
removed from the respective accounts. Depreciation of capital assets is computed using the straight-line
method over their estimated useful lives.
Property, plant, and equipment of the primary government, as well as the component units if any, is
depreciated using the straight line method over the following estimated useful lives:
Assets
Building and structure
Infrastructure
Vehicles and equ
1-E-7. Long-term Obligatio
In the government -wide
reported as liabilities in the
fund statement of net position.
Years
30-45
30
5-15
ancial statements, long-term debt and obligations are
1 activities, business -type activities, or proprietary
The governmental fund financial stateme cognize t r roceeds of debt and premiums as other
financing sources of the current period. ance costs . ed as expenditures.
1-E-8. Deferred Outflows/Inflows of Resource
In addition to assets, the statement of net position
outflows of resources. This separate financial stateme
represents a consumption of net position that applies to . fut
an outflow of resources (expense/expenditure) until then. T
outflows of resources.
to section for deferred
ws of resources,
will not be recognized as
rrently have any deferred
In addition to liabilities, the statement of net position will sometim: nclude a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until then. The City does not currently have any deferred inflows of
resources.
1-E-9. Fund Equity
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed. When both committed, assigned,
or unassigned resources are available for use, it is the City's policy to use committed resources first,
followed by assigned resources and then unassigned resources as they are needed.
30
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
1-E. Assets, Liabilities, and Net Position or Equity (continued)
1-E-8. Fund Equity (continued)
Equity is classified in the government -wide financial statements and in the proprietary fund financial
statements as net assets and is displayed in three components as follows:
Net investment in capital assets represents capital assets, net of accumulated depreciation and
reduced by the outstanding balances of any long-term debt attributable to the acquisition,
construction, or improvement of those assets.
Restricted net position is net position with constraints placed on the use either by (1) external groups
such as creditors, grantors, contrib ors, or laws or regulations of other governments; or (2) law
through constitutional provision . bling legislation.
Unrestricted net position . 1 other urces that do not meet the definition of "restricted" or "net
investment in capital as
Equity is classified in go ental fund fi ial statements as fund balance and is further classified as
nonspendable, restricted, co
or assigned as follows:
Nonspendable fund balance cannot be se it is either (a) not in spendable form, or (b)
legally or contractually required to b tained
Restricted fund balance is fund balance wi aint : ced on the use either by (1) external
groups such as creditors, grantors, contribu or o latio other governments; or (2)
law through constitutional provisions or ena
Committed fund balance includes amounts that • only ed fis purposes established
by formal action of the City Council, with is the City's h t level ion making authority.
Fund balance commitments can only be removed or ch.. _ed by tme ype of action (for example
resolution) of the City Council. This classification also include tractual obligations to the extent
that existing resources have been specifically committed for n satisfying those contractual
requirements.
Assigned fund balance is constrained by the government's intent to be used for specific purposes, but
is neither restricted nor committed. The City Recorder is authorized to assign amounts to a specific
purpose in accordance with the City's budget policy.
Unassigned fund balance is a residual classification of the General Fund. This classification
represents fund balance that has not been assigned to other funds and that has not been restricted,
committed, or assigned to a specific purpose within the General Fund.
31
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
1-E. Assets, Liabilities, and Net Position or Equity (continued)
1-F. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
2-A. Budgetary data
Annual budgets are prepared and adop
State law, by the Mayor and City C
July 1. Estimated revenues and a
Council at any time during the
fund's appropriations. Bud
control (the level at whic
the department level. Eac
depttment. All annual bud
is
. A pub
clude activit
City's expendi
al tment hea
se at
d by ordinance by total for each department, in accordance with
n or before June 22 for the following fiscal year beginning
may be increased or decreased by resolution of the City
aring must be held prior to any proposed increase in a
in the General Fund. The level of the City's budgetary
s cannot legally exceed appropriations) is established at
esponsible for operating within the budget for their
yea nd.
Utah State law prohibits the appropriation
5% of the General Fund revenues. The 5°/
capital until tax revenue is received, to
Any unreserved General Fund balance greater th
appropriated within the following two years.
o
erve that
emergenc
Once adopted, the budget may be amended by the
expenditures do not exceed budgeted revenues and ap .nate
held if the budgeted expenditures will exceed budgeted eve . nd
for budgeting. With the consent of the Mayor, department s may
balances from one expenditure account to another within that depa
Budgets for the General Fund are prepared on the modified accru
are not used.
General Fund balance to an amount less than
of be budgeted is used to provide working
itures, and to cover unanticipated deficits.
xt year's budgeted revenues must be
2-B. Deficit fund net assets
None of the City's funds have deficit balances.
32
rovided the budgeted
public hearing must be
alance which is available
oca e unexpended appropriated
t during the budget year.
asis of accounting. Encumbrances
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
NOTE 3 - DETAILED NOTES
3-A. Deposits and investments
Cash and investments as of June 30, 2014 consist of the following:
Demand deposits
Savings
Investments - PTIF
Total cash
Cash and investments listed above are
position as follows:
Cash and cash e
Restricted ca
Cash equivalents and investment
Fair Value
$ 391,545
1,705,015
5,898,643
$ 7,995,204
ssified in the accompanying government -wide statement of net
The Utah Money Management Act (U establis
public funds by public treasurers. UMM require
depository which includes any depository insti
Commissioner of Financial Institutions as havi
Chapter 7. UMMA provides the formula for dete
depository may hold in order to minimize risk of los
Institution must maintain to be eligible to accept publi nds
and specifies the assets which are eligible to be invested in
to maturity.
$ 7,160,914
834,290
$ 7,995,204
e in accordance with GASB Statement No. 31.
Tic requirements regarding deposits of
s be deposited with a qualified
en certi ed by the Utah State
d in UMMA Section 51,
funds which a qualified
irements which an
criteria for investments
ents, the amount of time
UMMA enables the State Treasurer to operate the Public Treasure vestment Pool (PTIF). PTIF is
managed by the Utah State Treasurer's investment staff and comes under the regulatory authority of the
Utah Money Management Council. This council is comprised of a select group of financial professionals
from units of local and state government and financial institutions doing business in the state. PTIF
operations and portfolio composition is monitored at least semi-annually by the Utah Money Management
Council. PTIF is unrated by any nationally recognized statistical rating organizations. Deposits in PTIF
are not insured or otherwise guaranteed by the State of Utah. Participants share proportionally in any
realized gains or losses on investments which are recorded on an amortized cost basis. The balance
available for withdrawal is based on the accounting records maintained by PTIF. The fair value of the
investment pool is approximately equal to the value of the pool shares. The City maintains monies not
immediately needed for expenditure in PTIF accounts.
33
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
3-A. Deposits and investments (continued)
Deposit and Investment Risk
The City maintains no investment policy containing any specific provisions intended to limit the City's
exposure to interest rate risk, credit risk, and concentration of credit risk other than that imposed by
UMMA. The City's compliance with the provisions of UMMA addresses each of these risks.
Interest rate risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. All deposits and investments of the City are available immediately.
Credit risk
Generally, credit risk is the risk that an suer of an investment will not fulfill its obligations. Custodial
credit risk for deposits is the risk thevent of the failure of a depository financial institution, a
government will not be able to re it , osits. At June 30, 2014, $500,000 of the City's demand
deposits are covered by FDIC
Custodial credit risk for i ments is the ris at, in the event of the failure of the counterparty (e.g.,
broker -dealer) to a transa• a governme 11 not be able to recover the value of its investment or
collateral securities that are posse of a. ether party. This risk is addressed through the policy of
investing excess monies only
Concentration of credit risk
Concentration of credit risk is the risk s attributeagnitude of a government's investment in
a single issuer. PTIF falls under the constraints o i A in , .ting concentrations of investments.
3-B. Receivables
The allowance policy is described in Note 1-E-3. Rec
shown below:
ear : the City's funds are
Governmenta siness-type
Activities Activities Total
Customers $ 89,8
Intergovernmental receivables 640,165
Other receivables 10,392
Total $ 740,437
34
113,620 203,500
640,165
10,392
113.620
854,057
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
3-D. Capital Assets
Capital asset activity for the governmental activities was as follows:
Beginning Ending
Balance Additions Retirements Balance
Governmental activities:
Capital assets, not being depreciated:
Land and rights $ 476,884 476,884
Construction in progress 234,295 127,764 362,059
Total capital assets, not being depreciated
Capital assets, beind depreciated:
Buildings 12,116,787 12,116,787
Improvements other than building 3,743,472 52,749 3,796,221
Machinery and equipment 4,253,574 182,945 4,436,519
Infrastructure 3,562,925 158,857 3,721,782
711,179 127.764 838.943
Total capital assets, bein
Less accumulated depreciation
Buildings 472,385 302,920 1,775,304
Improvements other than buildings , 38,376 225,690 1,764,066
Machinery and equipment 9 362,153 2,715,682
Infrastructure ••., 147,026 1,143,804
23,676,759 394,551 - 24,071,310
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
7,398,856
16,672,454
17,511,397
Depreciation expense was charged to functions/programs of the pry government governmental
activities as follows:
Governmental activities:
General government
Public safety
Highways and public improvements
Parks, recreation and public property
$ 345,756
81,445
238,310
372,278
Total $1,037,789
35
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
3-D. Capital assets (continued)
Capital asset activity for business -type activities was as follows:
Beginning Ending
Balance Additions Retirements Balance
Business -type activities:
Capital assets, not being depreciated:
Land and water shares $ 262,935 262,935
Construction in progress 173,351 217,809 391,160
Total capital assets, not being depreciated
Capital assets, being depreciated:
Water system 5,436,527 47,152 5,483,679
Sewer system 6,931,477 - - 6,931,477
Machinery & equipment 1,244,007 46,685 1,290,692
436.287 217.809 654.096
Total capital assets, being
Less accumulated depreciatio
Water system 3,116,254
Sewer system 38,634
Machinery & equipment 13,556
7, 68, 305,915 - 7,874,359
13,612,010 93,837
Total accumulated depreciation
Total capital assets being depreciated, net
Business -type activities capital assets, net
122,528
120,162
63,225
13,705,847
3,238,782
3,758,797
876,781
- 5,831,488
6,485,584
Depreciation expense was charged to functions/programs o . - prim. _ eve ent business -type
activities as follows:
Business -type activities:
Water
Sewer
$ 156,046
149,869
Total $ 305,915
36
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
3-E. Long-term debt
Long-term debt activity for the year was as follows:
Governmental activities:
2011 Equipment Lease
Matures 1/25/2014
2009 Equipment lease
Matures 3/24/2014
REFINANCE VEHICLES 2010
Matures 6/24/2014
2003 Sales Tax Revenue
Matures 10/1/2029
2009 Sales Tax Revenue B
Matures 10/1/2035
Total governmental activity
long-term liabilities 407,861 5,643,000 266,000
Due
Original % Within
Principal Rate 6/30/2013 Additions Reductions 6/30/2014 One Year
$ 62,127 3.66 $ 21,458 21,458
270,500 4.25 58,695 58,695
80 4.25 63,708 - 63,708
2.50 1,525,000 73,000 1,452,000 75,000
- 4,382,000 - 191,000 4,191,000 191,000
al Inte Total
2015 $ 26+ 0 02,300
2016 2625
2017 270,. ,500 30 00
2018 272,00
2019 274,000
2020 - 2024 1,401,000 5 ' 5
2025 - 2029 1,458,000 ,850 09,850
2030 - 2034 1,063,000 2,700 1,065,700
2035 - 2035 371,000 371,000
Other long-term liabilities:
Total $5,643,000 327,175 5,970,175
Compensated absences:
Governmental
Business -type
Total
37
Increase
Beginning (Decrease) Ending
$ 355,772 55,085 410,857
43,680 10,071 53,751
$ 399,452 65,156 464,608
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
3-F. Interfund receivable, payables and transfers
Interfund transfers:
General fund
Recreation
Community development
Millcreek project
Capital projects
Water and sewer fund
Storm drain fund
Total
Transfers are used to move unrestri
government must account for in
amounts provided as subsidies
NOTE 4 - OTHER IN
4-A. Risk management
Transfers In Transfers Out
$ 410,000 773,336
134,536
36,000
12,350
590,450
$1,183,336
365,000
45,000
1.183.336
eral fund revenues to finance various programs that the
accordance with budgetary authorizations, including
s for various grant programs.
The City is exposed to various risks of los ted to
errors and omissions; and natural disast he City p
public agency insurance mutual, which p ovides c
City is subject to a minimal deductible for clai
coverage from coverage in the prior year. Amo
in any of the past three fiscal years.
4-B. Employee pension and other benefit plans
Plan Description:
Moab City Corporation contributes to the Local Governmental C utory System (Contributory
System), Local Governmental Noncontributory System (Noncont ry System), Public Safety Safety
Contributory System, and Public Safety Noncontributory System, w ich are cost -sharing multiple -
employer defined benefit pension plans administered by the Utah Retirement Systems (the Systems). The
Systems provide retirement benefits, annual cost of living adjustments, death benefits and refunds to plan
members and beneficiaries in accordance with retirement statutes established and amended by the State
Legislature.
orts; theft of, damage to, and destruction of assets;
es in the Utah Local Government Trust, a
perty damage and general liability. The
icant reductions in insurance
eeded insurance coverage
The Systems are established and governed by the respective sections of Chapter 49 of the Utah Code
Annotated 1953 (Chapter 49) as amended, which also establishes the Utah State Retirement Office
(Office) for the administration of the Utah Retirement Systems and Plans. Chapter 49 places the Systems,
the Office and related plans and programs under the direction of the Utah State Retirement Board
(Board) whose members are appointed by the Governor. The Systems issue a publicly available financial
report that includes financial statements and required supplementary information for the Systems and
Plans. A copy of the report may be obtained by writing to the Utah Retirement Systems, 540 East 200
South, Salt Lake City, UT 84102 or by calling 1-800-365-8772.
38
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
4-B. Employee pension and other benefit plans (continued)
Funding Policy:
The City is required to contribute a percentage of covered salaries to the respective Systems as follows:
13.99% to the Contributory System; 17.29% to the Noncontributory System; 20.85% to the Public Safety
Contributory System; and 32.14% to the Public Safety Noncontributory System. The contribution rate is
the actuarially determined rate and is approved by the Board as authorized by Chapter 49.
The City's contributions to the Systems for the years ending June 30, 2014, 2013 and 2012 were,
respectively: to the Contributory System $8,917, $6,703 and $700; to the Noncontributory System
$379,276, $343,208 and $281,016; to the Public Safety Contributory System $4,982, $5,235 and $5,273;
and to the Public Safety Noncontributory System $179,188, $171,131 and $139,246. The contributions
were equal to the required contribution for each year.
IRC Code Section 401k Plan:
The City participates in a 401k
contributions for the years e
$16,682, respectively.
4-C. Subsequent Events
In preparing these financial stateme s, the
recognition or disclosure through October,
used.
4-D. Landfill agreement
ugh the Utah State Retirement Systems. The City's
2013 and 2012 amounted to $25,027, $22,065 and
Moab City entered into an agreement with the Gr
District No. 1 and Grand County in which the City a
post -closure care at the Klondike and Moab Landfills. STioul
not cover all costs associated with the closure and post-clo
one half of the uncovered costs. Total closure and post -closure cost
more than $175,400 for the Klondike Landfill and for the Moab
uated events and transactions for potential
ate the financial statements were available to be
4-E. Rounding Convention
ement Special Service
rmance of closure and
s set aside by the District
11, oab would be liable for
currently estimated to be no
fill.
A rounding convention to the nearest whole dollar has been applied throughout this report, therefore the
precision displayed in any monetary amount is plus or minus $1. These financial statements are computer
generated and the rounding convention is applied to each amount displayed in a column, whether detail
item or total. As a result, without the overhead cost of manually balancing each column, the sum of
displayed amounts in a column may not equal the total displayed. The maximum difference between any
displayed number or total and its actual value will not be more than $1.
39
entionally left blank.
40
MENTAL INFORMATION
naudited)
41
entionally left blank.
42
Moab City Corporation
Notes to Required Supplementary Information
June 30, 2014
Budgetary Comparison Schedules
The Budgetary Comparison Schedules presented in this section of the report are for the City's General
Fund.
Budgeting and Budgetary Control
Budgets for the General Fund are legally required and are prepared and adopted on the modified
accrual basis of accounting.
Original budgets represent the revenue estimates and spending authority authorized by the City
Council prior to the beginning of the year. Final budgets represent the original budget amounts plus
any amendments made to the budget uring the year by the Council through formal resolution. Final
budgets do not include unexpende ces from the prior year because such balances automatically
lapse to unreserved fund balancf each year.
Current Year Excess of ditures ov ppropriations
For the year ended Jun 014 was wit• e budget appropriations.
43
Moab City Corporation
SCHEDULE OF REVENUES, EXPENDITUES AND
CHANGED IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
(Unaudited)
For the Year Ended June 30, 2014
Revenues
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Interest
Miscellaneous revenue
Budgeted
Original
$ 5,897,000
121,700
267,586
1,288,100
45,000
41,000
78,400
Budgeted
Final
5,897,000
141,950
274,949
1,288,100
45,000
41,000
88,229
Variance with
Actual Final Budget
6,212,209
252,523
268,925
1,304,679
53,869
29,147
96,438
Total revenues 7,738,786 7,776,228 8,217,789
Expenditures
General government
Public safety
Highways and public i
Parks and recreation
Debt Service:
Principal
Interest
Total expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources and (Uses)
Transfers in
Transfers out
Total Other Financing Sources and (Uses)
Net Change in Fund Balances
Fund Balances - beginning of year
Fund Balances - end of year
1,953,076
2,418,858
2,298,420
1,227,865
1,828,817
2,281,851
2,043,987
1,135,391
143,861 143,861
5,987
5,985
1,953,176
2,389,331
2,290,505
1,227,865
,861
,987
8 O1 I 2
315,209
110,573
(6,024)
16,579
8,869
(11,853)
8,209
441.561
124,259
137,007
254,433
92,474
2
608,175
1,052,736
441,000 410,000 (30,000)
(623,33 (773 (773,336)
(183,336) .336 (363,336) (30,000)
(458,175) (608,175) 414,561 1,022,736
1,771,350 1,771,350 1,771,350
$ 1,313,175 1,163,175 2,185,911 1,022,736
44
45
Thi e intenti ft blank
46
��A L a r s o n
C E B T I M I P U B L I C I C C I O I I M D T I S
I N D E P E N D E N T A U D I T O R S '