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HomeMy Public PortalAbout1958-1959 audit water and sewerC I T Y OF MOAB MOAB, UTAH REPORT ON EXAMINATION WATER & SEWER FUND May 31, 1959 & 12 Months Ended May 31, 1959 INDEX Accountant's Report Page 1 Comparative Balance Sheets, May 31, 1959 & 1958 Assets 6 Liabilities, Reserves & Surplus 7 Income 8 Expense, May 31, 1959 & 1958 8 Operating Expenses, May 31, 1959 S 1958 9 OFFICE_ M.>NAGER HARCILO C_ PAL,ELLER E. J. CLAUS CERTP,IE❑ PSIBLIC ACC❑LINTANT POST❑MCl= BLiDU. ALPINE 3-51191 MUAB, UTAH Honorable Mayor and City Council City of Moab Moab, Utah Gentlemen: MEMBER CIF AMERICAN IN5TITOTE Of ACCOUNTANTS I have examined the Balance Sheet of the Water and Sewer Fund of the City of Moab as of May 31, 1959 and the related statement of Income and Expense for the year then ended. The examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the records and other auditing procedures as were considered necessary in the circumstances. ORGANIZATION & OFFICIALS The City of Moab, Grand County, Utah is a city of the third class with the Mayor -Council type of Government. As of May 31, 1959 the City Officials responsible for the operation of the Water and Sewer Fund were as follows: Mayor: City Council: City Administrator: K. E. Mrpougald David W. Alien, William McDougald, Richard S. Parsons, Dr. Paul R. Mayberry, and G. R. McKee. Darrell Reardon ACCOUNTING RECORDS The 1957 Utah State Legislature prescribed that all third class cities and towns within the State adopt the Uniform System of Accounts for 1959, as established by the State Tax Commission. Due to changes in personnel in the City Offices it was decided to make the changes when the system became available in 1958 in lieu of instructing the new employees in one system and then changing systems. In addition, the various journals and registers were converted to a punch card system from the hand kept system previously used, in this connection a new General Ledger using the new classification of accounts was also inaugurated. Page I GASH us by the ACCOUNTS RECEIVABLE INVENTORY extensions SCOPE OF WORK PERFORMED Cash in Banks aggregating $37,701.24 at May 31, 1959 was verified by reconciling the amounts confirmed directly to depositories. Water and Sewer Accounts Receivable outstanding at May 31, 1959 were tested by negative confirmations. In addition, tests were also made of the details shown on the city records. The inventory as taken by the city employees as of May 31, 1959 was test counted by us on the same date. Prices, and footing were also tested, INVESTMENTS Investments in United States Obligations were all held by the trust departments of various banks as agents for the city and were confirmed to us by the banks involved. All other assets were reviewed by us with responsible city officials. OTHER ASSETS LIABILITIES The liabilities were not confirmed by correspondence with creditors, but by test comparisons with vendor's statement for subsequent periods. Other liabilities were reviewed, examined and reconciled to date of this report, RESERVE FOR The Reserve for Bond Retirement, their corresponding sinking BOND RETIREMENT funds and the sinking fund requirements as set forth in the respective bond ordinances were reviewed in detail. SUMMARY The examination was directed primarily to a verification of the Balance Sheet of the Water and Sewer Fund as of May 31, 1959, to a general review of the results of operations for the year then ended and the application of the Utah Uniform Accounting System, Although the examination did not extend to a detail check of all cash and other bookkeeping throughout the year, numerous documents and entries were scrutinized by us in connection therewith; to the extent that such documents and entries were examined, and based on information and explanations obtained from city officials and employees, the accounts were found to be in order. It should be understood that since the examination, while extensive as to matters of detail, did not comprise a complete check of all cash and other transactions throughout the year, and would not necessarily disclose irregular- ities, should any exist. Page 2 COMMENTS UNIFORM In general, the adoption of the uniform system of accounts SYSTEM OF did not make material changes in the City of Moab's records ACCOUNTS beyond reclassifying and regrouping various income and expense accounts. In this connection the Balance Sheet and Income and Expense Schedules are comparable in all material respects for 1959 and 1958. However, the details of "Materials, Supplies & Services" and "Other Charges" as shown on Page 8 are not strictly comparable and are shown for information purposes only. SINKING The City of Moab, as a result of the changes made in City FUNDS Officials, employees and their outside accounting firm, fell slightly behind in making the payments to the various Sinking Funds during the latter part of 1958. However, without exception, all Sinking Funds were current by May 31, 1959. A summary of these funds is as f©nows: Date of Bonds Original Principal Cash in Bank Investments Interest Receivable 6/1/51 $15,000.00 1,427.97 1,970.51 19,52 Reserve for Bond Retirement 418,00 INSURANCE COVERAGE & SURETY BONDS motor quire 7/1/51 $92,000.00 4,314.21 17,487.23 162,72 7/1/54 $60,000.00 2,047.58 9,468.76 73.96 7/1/56 $49,000.00TOTAL 2,213.95 10,003.71 4,470.32 33,396.82 21.09 277.29 2r2A264.j6 11.590.30 0 .36 43,677.82 Insurance coverage consisted of fire and extended coverage on structures and equipment, workmens compensation, fire, theft, collision or upset, and comprehensive coverage together with public liability and comprehensive liability insurance on vehicles. Surety bonds were in force for all employees whose duties re - the handling of cash of the Water and Sewer Fund, A list of the policies carried by the entire City of Moab which also protects the Water and Sewer Departments are listed below: LIMITS OF POLICY_ RISKS COVERED $42,000.00 59►130.00 18,500.00 16,650.00 10,000,00 2,500.00 Fire & extended coverage Fire & extended coverage Fire is extended coverage Fire & extended coverage Treasures bond Blanket employees bond INSURER Hanover ins. Co. N.Y. American Surety Co. N.Y. Utah Home Fire Ins. Co. Home ins. Co. N.Y. American Surety Co. N.Y. American Surety Co. N.Y. EXPERATION DATE 02/27/64 02/27/64 02/27/64 02/27/64 04/01/60 On cancellation Page 3 LIMITS OF POLICY By law $100.00 Deduct - able 8.1. to $200,000.00 S.I, to $200,000.00 P.D. to $5,000.00 P.D. to $25,000.00 WATER CONSUMPTION RISKS COVERED Workmens Comp. Ins. Fire, theft, col- lision $ extended coverage Comprehensive lia- bility, auto Comprehensive lia- bility, other Comprehensive lia- bility, auto Comprehensive lia- bility, other INSURER State Insurane Fund American Surety Co. N.Y. American Surety Co. N.Y. American Surety Co. N.Y. American Surety Co. N.Y. American Surety Co. N.Y. EXPERATION DATE 06/30/59 01/02/60 01/02/60 01/02/60 01/02/60 01/02/60 In the year covered by this review, 209,448,000 gallons of water were recorded on customers meters. This is an increase of 29,837,000 gallons over last years consumption. The aver- age number of connections increased from 720 to 756. Variations throughout the year in the number of connections and quantities consumed are shown in the following table: NO. OF WATER USED MONTH CONNECTIONS 1000 GALLONS June 1958 743 32,737 July 738 28,386 August 742 23,219 September 758 19,401 October 760 15,220 November 763 10,689 December 758 11,253 January 1959 755 8,993 February 751 9,066 March 763 11,858 April 766 17,106 May 769 21,515 Total Consumption 209)4 ) GENERAL During the year approximately 800,000 gallons of water daily have been made available to the water consumers of the City of Moab through the addition of a new spring from the Summerville Ranch. A new 1,000,000 gallon storage tank is in the process of completion by the Municipality of Moab. This tank will become part of the distribution system early in .tune 1959 and should alleviate the shortage of water that existed in the Summer of 1958, which forced a curtailment of water usage. Page 4 The rate adjustment on both Water Consumers and Sewer Services effective Jan- uary 1, 1959 will more fully guarantee sufficient revenue to retire the revenue bonds outstanding, The increase in the operating expense of the Water and Sewer Department was due in part by the additional cost of operating the Sewerage Dis- posal Plant, which went into operation in July 1958, Very truly yours, /: L. J, CLAUS Certified Public Accountant Page 5 CITY OF MOAB COMPARATIVE BALANCE SHEETS Water & Sewer Fund May 31, 1959 S 1958 ASSETS CURRENT ASSETS Cash on Hand & in Genera! Sank Account Accounts Receivable Operating Supplies Inventory Total Current Assets BOND SINKING FUND ASSETS Cash in Bank Investments in U. S. Treasury Bonds interest Receivable Total Bond Sinking Fund Assets FIXED ASSETS Plant & Equipment Automobiles & Trucks Office Furniture & Fixtures Accumulated Depreciation Net Fixed Assets TOTAL ASSETS MAY 31, 1959 195-8 $ 27,747.53 9,931.80 9.500.95 47,180.28 10,003.71 33,396.82 277.29 43,677.82 760,356.57 11,945.39 2,745.60 775,047.56 (68,155.10) 706,892.46 7974 750.16 $ 14,146.42 9,793.14 8,341.33 32,280.89 12,680.37 22,945.63 233.68 35.853.68 753,539.97 11,945.39 2,745.60 768,230.96 (56,876.97) 711,353.99 779,4.94.56 INCREASE (DECREASE) $ 13,601.11 138.66 1.159.62 14,899.39 (2,676.66) 10,451.19 43.61 7,818.14 6,816.60 6,816.60 (11,278.13) (4,461.53) Page 6 CITY OF MOAB COMPARATIVE BALANCE SHEETS Water & Sewer Fund May 31.1959 b 1958 LIABILITIES, RESERVES, b SURPLUS CURRENT LIABILITIES Accounts Payable Taxes Payable Due to Other Governmental Units Bond Interest Payable Customers' Deposits Total Current Liabilities Revenue Bonds Payable CONTRIBUTIONS Municipality Federal Other Total Contributions Reserve for Bond Retirement Earned Surplus TOTAL LIABILITIES, RESERVES & SURPLUS MAY 31, 1959 1958 $ 1,743.11 $ 1,188.81 70.92 3,050.00 3,465.83 3,427.50 942.90 630.40 6,151.84 8.367.63 188,500.00 195,000.00 277,320.49 277,320.49 133,509.44 133,509.44 901245,4i 83,656.91 501,575.34 494.486.84 43,677.82 35,859.68 57,845.56 45.780.41 797.750.56 INCREASE (DECREASE) $ 554.30 (70.92) (3,050.00) 38.33 312.50 (2,215.79) (6,500.00) 7,088.50 7,088.50 7,8i8.14 12.065.15 779,494.56 18,256.00 Page 7 CITY OF MOAB Water S Sewer Fund INCOME Water Sales Sewer Rentals Other Total Income OPERATING EXPENSES Salaries 5 Wages Materials, Supplies Other Charges Total Operating Expenses NET OPERATING INCOME S Services NON -OPERATING EXPENSE Interest Total Non -Operating Expense NET INCOME Earned Surplus - Beginning of Period Less: Transfers to Reserve for Bond Retirement EARNED SURPLUS END OF PERIOD INCOME b EXPENSE 12 Months Ended May 31 , 1959 & 1958 12 MONTHS ENDED MAY 31, 1959 1958 $ 54,308.06 $ 49,9b6.79 26,513.33 24,544.2o 1.30 303,Oo 8°,822.69 22,225.67 18,279.34 13.223.80 53,728.81 27.093.88 10,853.74 10.853.74 16,24o.14 45,780.41 62,020.55 4.174.99 57.0k5.56 % OF SALES 1959 1958 67.20 32.80 66.79 32.81 .40 74,813.99 100.00 100.00 16,858.90 18,458.32 11j969.11 27.50 22.62 16.36 22.53 24.67 16.00 47,286.33 66.48 63.20 27,527.66 33.52 36.8o � 8 11.1_.04 13.43, i p .84 8.111.04 13.43 1o,84 19,416.62 20.2 28,871.45 48,2 8.07 2,507.66 45, 780.41 Page 8 CITY OF MOAB Water & Sewer Fund OPERATING EXPENSES 12 Months Ended May 31, 1959 & 1958 12 MONTHS ENDED MAY 31, % OF SALES 1959 1958 1959 1958 MATERIALS, SUPPLIES, & SERVICES Office Expense & Supplies $ 694.98 $ 932.92 .$6 1.25 Equipment - Operating Supplies & Maintenance 2,571.18 1,768.31 3.18 2.36 Building & Grounds - Operating Supplies & Maintenance 6,990.64 4,965.77 8.65 6.64 Special Departmental Supplies 1,310.84 4,015.37 1.62 5.37 Professional & Technical Service 6,181.44 5,207.58 7.65 6.96 Miscellaneous 530,26 1,568.3Z .66 2.09 TOTAL MATERIALS, SUPPLIES ri SERVICES 18,27�. 1+ 18,48.32 22-62 2,.�! OTHER CHARGES Insurance & Surety Bonds $ 396.10 $ 1,167.72 .49 1.56 Employee Benefits 1,350.94 486.68 1.67 .65 Depreciation 11,278.13 10,314.71 13.95 13,79 Miscellaneous 198.63 TOTAL OTHER CHARGES 11 6 .11 1� 6�36 166-"1 Note: The above 1959 & 1958 amounts are not strictly comparable and are shown in comparison for information purposes only. Page 9