HomeMy Public PortalAbout2003-2004 Audit Final Draft for CityCITY OF MOAB, UTAH
INDEPENDENT AUDITORS' REPORT
BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
CITY OF MOAB, UTAH
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2004
Pages
INDEPENDENT AUDITORS' REPORT 1-2
MANAGEMENT'S DISCUSSION AND ANALYIS MDA-1 thru MDA-6
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements:
Statement of Net Assets 3
Statement of Activities 4
Fund Financial Statements:
Balance Sheet — Governmental Funds 5
Reconciliation of Total Governmental Fund Balances to
Net Assets of Governmental Activities 6
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 7
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 8
Statement of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual — General Fund 9-10
Statement of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual — Capital Projects 11
Statement of Net Assets — Proprietary Funds 12
Statement of Revenues, Expenses, and Changes in
Fund Net Assets — Proprietary Funds 13
Statement of Cash Flows — Proprietary Funds 14
Notes to the Financial Statements 15-33
REQUIRED SUPPLEMENTARY INFORMATION:
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet — Non -major Governmental Funds 34
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances — Non -major Governmental Funds 35
INDEPENDENT AUDITORS' REPORT
August 19, 2004
Honorable Mayor
Members of the City Council
City of Moab, Utah
Mayor and Council Members:
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 the
City of Moab, as of and for the year ended June 30, 2004, which collectively comprise the City of
Moab's basic financial statements as listed in the table of contents. These financial statements are
the responsibility of the City of Moab's management. Our responsibility is to express opinions on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our 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 the City of Moab, as of June 30,
2004, and the respective changes in financial position and cash flows, where applicable, thereof
for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
As described in Note 1 and the Introduction in the Notes to the Financial Statements, the City has
implemented a new financial reporting model as required by the provisions of Governmental
Accounting Standards Board Statement No. 34, Basic Financial Statements — and Management's
Discussion and Analysis — for State and Local Governments, as of June 30, 2004.
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The Management's Discussion and Analysis on pages MDA-1 through MDA-6 is not a required part
of the basic financial statements but is supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement and
presentation of the required supplementary information. However, we did not audit the information
and express no opinion on it.
In accordance with Government Auditing Standards, we have also issued a report dated August 19,
2004, on our consideration of the City of Moab's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report
is an integral part of an audit performed in accordance with Government Auditing Standards and
should be read in conjunction with this report in considering the results of our audit.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Moab's basic financial statements. The combining non -major fund
financial statements are presented for purposes of additional analysis and are not a required part of
the basic financial statements. The combining non -major fund financial statements have been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in our
opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a
whole.
Larson & Peterson
Certified Public Accountants
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MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Moab, we offer readers of the City of Moab financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal year
ended June 30, 2004. It is designed to provide an overview of the City's financial activity. It
is also intended to assist the reader in focusing on significant financial issues including
identifying changes in the City's financial position (its ability to address the next and
subsequent years' challenges), identifying any material deviations from the approved budget,
and identifying individual fund issues or concerns. We encourage readers to consider the
information presented here in conjunction with the Transmittal Letter and the City's financial
statements.
Because the City is implementing new reporting standards for this fiscal year with significant
changes in content and structure, the information looks different than prior years. However, in
future years, comparisons will be more meaningful and will go further in explaining the City's
financial position and result of operations.
FINANCIAL HIGHLIGHTS
• The total net assets of City of Moab increased by $505,346 to $15,604,731. The
governmental net assets increased by $409,779 and the business -type net assets
increased by $95,567.
• The total net assets of $15,604,731 are made up of $9,691,418 in capital assets net
of related debt and $5,913,313 in other net assets.
• The General Fund (the primary operating fund) had a decrease in its fund balance of
$401,163, due to transferring funds from the General Fund fund balance to various
capital projects funds to pay for capital projects.
REPORTING THE CITY AS A WHOLE
The discussion and analysis is intended to serve as an introduction to the City of Moab's basic
financial statements. The City of Moab's basic financial statements comprise three
components: 1) government -wide financial statements, 2) fund financial statements, and 3)
notes to the financial statements. This report also includes other supplementary information in
addition to the basic financial statements.
The government -wide financial statements are designed to provide readers with a broad
overview of the City of Moab's finances, in a manner similar to a private -sector business.
• The statement of net assets presents information on all of the City of Moab's assets
and liabilities, with the difference between the two reported as net assets. Over
time, increases or decreases in net assets may serve as a useful indicator of whether
the financial position of the City of Moab is improving or deteriorating. However,
other non -financial factors will need to be considered.
MDA-1
" T h e s t a t e m e n t o f a c t i v i t i e s p r e s e n t s i n f o r m a t i o n s h o w i n g h o w t h e C i t y '