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HomeMy Public PortalAbout1959-1960 Audit Water & Sewer FundCITY OF MOAB MOAB, UTAH REPORT ON EXAMINATION WATER & SEWER FUND May 31, 1960 12 Months Ended May 31, 1960 INDEX Page Accountant's Report i Comparative Balance Sheets, May 31, 1960 & 1959 Assets 6 Liabilities, Contributions, Reserve & Surplus income & Expense, May 31, 1960 & 1959 8 Operating Expenses, May 31, 1960 & 1959 9 E. J. CLAUS CERTIFIED PLEILIC AGCOLNTANT POST OFF ICE 6L0© ALPINE 3-51E11 MOAB. LJTAH OFFICE MANAGER HARC]LP C- MUELLER Honorable Mayor and City Council City of Moab Moab, Utah Gentlemen: MEMEIF..P OF A,ERIPAN INSTITUTC PF ACCOUNTANTS I have examined the Balance Sheet of the Water and Sewer Fund of the City of Moab as of May 31, 1960 and the related statement of Income and Expense for the year 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, 1960 the City Officials responsible For the operation of the Water and Sewer Fund were as follows: Mayor: City Council: City Administrator: K. E. McDougald E. E. Drake Dr, Paul P. Mayberry G. R. McKee Richard S. Parsons Edd E. Provonsha Darrell Reardon SCOPE OF WORT; PERFORMED CASH Cash in banks aggregating $6,647.22 in the General Operating account and $24,427.91 in the various Bond Sinking Fund accounts as of May 31, 1960 was verified by reconciling the city's records to the amounts confirmed directly to us by the depositories. ACCOUNTS Water and Sewer accounts receivable outstanding at December RECEIVABLE 31, 1959 and May 31, 1960 were tested by negative confirmations. In addition, tests were also made of the details shown on the city records. INVENTORY The inventory as taken by the city employees as of May 31, 1960 was test Counted by us on the same date. prices, extensions, and footings were also tested. INVESTMENTS Investments of the various Bond Sinking Funds in United States obligations were al' held by the trust departments of the various banks involved and were confirmed to us. Wage 1 OTHER ASSETS LIABILITIES The liabilities were reviewed by test comparison with vendor's statements for subsequent ;periods. Other liabilities were re- viewed, examined and reconciled to the city records. All other assets were reviewed with responsible city officials. RESERVE FOR The reserve for bond retirement, their corresponding sinking BOND RET PE- funds and the sinking fund requirements as set forth in the MENT 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, 1960, 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 entries throughout the year, numerous documents and entries were scrutinized by us in connection therewith. To the extent such doc- uments 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 irregularities, should any exist. UNIFORM ACCOUNTING SYSTEM COMMENTS The adoption of the Utah Uniform System of Accounts has resulted in the financial statements not being completely comparable with prior periods. The 1960 and 1959 data included in this report, however, are both based on the same system of accounts. SINKING in order to insure that all sinking funds are maintained in the FUNDS proper amounts, the City of Moab is currently making payments to these funds in the ,month of May of amounts adequate to cover all of the monthly payments required by the bond ordinances for the succeeding 12 months. By May 31, 1960 all funds were current through June 30, 1961. Date of Bonds TOTAL 6/1/51 7/1/51 7/1'54 7/1/56 Original Principal $216,000.00 S15,000.00 S92,000.00 $60,000.00 $49,000.00 Outstanding 5/31-'60 182,000.00 7,000,00 72,000.00 59,000.00 44,000.00 RESERVE FOR BOND RET I :;EMENT Cash in Bank Investments Accrued Interest CUMULATIVE PAYMENTS to May 31, 1960 Principal Interest 24,427.91 2.777.85 6,244.14 6,428.26 8,977.66 33,396.82 1,970.51 17,487.23 9,468.76 4,47o.32 277.29 19.52 162.72 73.96 21.09 58,102.02 4,767.88 23,814.o9 15,57o.58 13,469.07 34,0oo.00 8,000.00 20,000,00 1,000.00 5,000.0o 5�4 762.50 3,82o.00 28,31o.00 18,o95.00 4,537.50 "—TIT'762.5o 11,82o.00 48,310.no i9,0D5.00 9,537.50 Page 2 TOTAL INFESTED IN $146,864.52 $16,587.88 $72,204.09 $35,065.98 $23,006.57 SINKING FUNDS SINKING FUND PAY- MENTS REQUIRED BY ORDINANCE THROUGH 1961 ANNIVERSARY 144,129.25 16�560.00 69,670.00 34r935.00 22,964.25 EXCESS AT MAY 31, 1960 Over Requirements through July 2, 1961 CASH REQUIREMENTS June 1, 1960 to May 31, 1961 2,735.27 27.88 2,534.09 130.98 42.32 13,993.75 1,260.00 5,820.00 3,731.25 3,182.50 The excess in the 1/1'51 Bond Series Fund is required in order to have adequate cash in bank to satisfy the cash requirements. ACCOUNTS In reviewing the City of Moab's ordinances as pertain to financial RECEIVABLE matters, the revenue bond ordinances contain the following require- ment which must be enforced by the city: "That all bills for water or sewer services, or both served by or through the Municipal Water and Sewer System shall be rendered monthly by one billing at the established rates in advance to be due and payable the first day of each and every month. Bills rendered for water and sewer services must be paid at the same time for both of said services. In the event said bills are not paid in full within thirty days after becoming_ due and payable, water services shall be immediately discontinued." ordinance 78-56 Section 16:C An aging of the dater and Sewer Accounts Receivable disclosed the following;. OF PP IOD OUTSTANDING AMOUNT TOTAL 30 Days 60 Days 90 Days & older 8,597.68 1,526.58 551.19 427.14 $11,102.59 77.44 13.75 4,96 3.85 100.00 WATER In the year covered by this review 231,362,000 gallons of water CONSUMPTION were recorded on customer's meters. This is an icrease of 21,919,000 gallons over last years consumption. The average number of connections increased from 756 to 771. Variations throught the year in the number of connections and quanities of water consumed are shown in the following table: Page 3 MONTH CONNECTION'S 1,000 GALLONS June 1959 762 33,792 July 763 33,453 August 756 25,756 September 760 22,759 October 764 14,237 November 775 10,664 December 771 11,076 January 1960 772 10,251 February 771 10,077 March 780 12,313 April 785 23,944 May 80o 23u4o TOTAL CONSUMPTION 231,362 DUE TO OTHER During the year a new 1,000,000 gallon water storage tank was FUNDS completed. This tank was financed by issueing $200,000.00 of CONT1GENT General Obligation Bonds which are not direct obligations of the Water and Sewer- Fund. however, it is our understanding that it is the intent of the city officials to male payments on the obligations from the Water and Sewer Fund to the extent that this fund received direct benefit and to the extent that funds are available in the Water and Sewer Fund without imparing either the operations of the fund or its obligations under its Revenue Bond Ordinances. The amount involved is $177,927.34. The initial interest payment was made in June, 1959 and was charged against the Bond proceeds and did not affect the Wester and Sewer Fund. The second payment of $4,000.00 interest and $10.00 agent's fee was charged to the Water and Sewer Fund and is included in the "Interest - Other than Bonds" in the Operating Expenses. In 1957 the City of Moab acquired certain ,property primarily for the water rights. During the calendar year 1959 approximately 800,000 gallons of water daily have been made available from these properties. These water rights were acquired by the General Fund of the City of Moab primarily for the benefit of the Water and Sewer Fund. Total cost will be $64,726.66 of which $39,000,00 is included in contigent liabilities. INSURANCE Insurance policies and Surety bonds in force May 31, 1960 were COVERAGE & examined. Insurance coverage consisted of fine and extended SURETY BONDS coverage on structures and equipment, wor!cmen`i compensation, fire, theft, collision or u2set, and liability insurance on motor vehicles. Surety bonds were in force for all employees whose duties require 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 COVEi,ED $42,000.00 -_ 59,130.00 •. Fire & extended coverage Fire & extended coverage INSURER EXPERATION DATE Hanover Ins. Co 02/27/64 N.Y. American Surety Co 02!27/64 N.Y. Page 4 LIMITS OF POLICY RISKS CO"EKED $18,500.00 .. 16,650.00 10,000.00 2,500.J0 By law 16,000.00 A.C.V. $100.00 Deduct - able B.I . to $100,000.00 B.1 . to 200,000.00 P.D. to 25,000.00 P.D. to 25,000.00 Fire tr extended coverage Fire & extended coverage Treasurers bonds Blanket employees bond Workmens compensation ins. Contractors Equip. Floater Material Damage Comprehensive Comprehensive Comprehensive, Auto Comprehensive, Other INSURER EXPE'ATIOld DATE Utah Home Fire Ins 02/27/64 Co., Salt Lake Home Ins. Co. N.Y. American Surety Co. N.Y. American Surety Co. State Ins. Fund Glen Falls Ins. Co. N.Y. Nat'l Auto & Casualty Co., Los Angeles Nat'l Auto & Casualty Co., Los !Angeles Nat'l Auto & Casualty Co., Los Angeles Nat'l Auto & Casualty Co., Los Angeles Nat'l Auto & Casualty Co., Los Angeles 02/27/64 04/01/61 On cancelation 06/ 30,E 60 02/ 14/63 01/02 61 0l /02/61 01 /02/61 01/02/61 01 /02/ 61 However the following deficiencies were noted: City Treasurer's bond should be signed by City Treasurer. Home Ins. Co. Blanket Indorsement should be signed by agent:, Am. Surety Co. Blanket Indorsement should be signed by agent. Utah Home Fire Ins. Co. Blanket Indorsement should be signed by agent. Hanover Ins. Co. Blanket Indorsementshould be signed by agent. Hanover Ins. Co. Blanket Indorsement should be completed. Very truly yours, E. . CLAUS Certified Public Accountant * Blanket form coverage totaling $136,280,00 page 5 CITY OF MOAB COMPARATIVE BALANCE SHEETS Water & Sewer Fund may 31, 1960 & 195E ASSETS CURRENT ASSETS Cash on Hand & in General Bank Account Accounts receivable Operating Supplies Inventory Total Current Assets BOND SINKING FUND ASSETS Cash in Banks 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, i96o 6,697.22 11,102.59 12,147,22 29,947.g 24,427.91 33,396.82 277.29 58,102.02 1,009,632.64 15,647.89 2,745.60 1,028,026.13 01,909.19) 946,116.94 $1,034,165.953 lrrt. $ 27,747.53 9,931.8o 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 (68,155.1o) 7°6,892.46 $797,750.56 INCREASE (DECREASE) $(21,050.31) 1,170.7E 2,646.27 (17,233,25) 14,424.20 14,424.20 249,276.07 3,702.50 252,978.57 (13,754.0) 2)9, 224.48 �236,415.43 Page 6 CITY OF MOAB COMPARATIVE BALANCE SHEETS Water & Sewer Fund May 31, 1960 & 1959 LIABILITIES, CONTRIBUTIONS, RESERVES & SURPLUS LIABILITIES Accounts Payable Accrued Interest on Bonds Customers' Deposits Revenue Bonds Contigent Liability to General Fund Total Liabilities MAY 31 t_ INCREASE 1960 1559 (DECREASE) $ 3,035.83 $ 1,743.11 $ 1,292.72 3,196.23 3,465.83 (265.60) 1,204.63 942.90 261.73 182,000.00 188,500.00 (6,500.00) 216,527.34 216,927.34 406,364.03 194,651.84 211,7'2.19 CONTRIBUTIONS Municipality 277,320.49 Federal 133,509.44 Other 96,691.66 Total Contributions 507,521.59 Reserve for Bond Retirement 58,102.02 Earned Surplus 62,178.35 277,320.49 133,509.44 90,745.41 5,946.25 501,575.34 5,946.25 43.677.82 14,424.20 571845.56 4, 3.32.79 TOTAL LIABILITIES, CONTRIBUTIONS, RESERVES & SURPLUS $1.034,165.0 $797,750.56 $236,4'5.43 Page 7 CITY OF MOAB Water Sewer Fund INCOME Water Sales Sewer Rentals Other Total Income OPERATING EXPENSES Salaries E. Wages Materials, Supplies & Services Other Charges Total Operating Expenses NET OPERATING PROFIT NON -OPERATING EXPENSE Interest on Bonds NET INCOME Earned Surplus - Beginning of Period Less: Transfers to Reserve for Bond Retirement INCOME & EXPENSE 12 Months Ended May 31, 1960 & 1959 12 MONTHS ENDED MAY 31,, /t OF SALES 1961 1960 1555 $62,841,49 28,733.05 677.36 52,251.90 25,152.31 21,767.50 20,392.13 67,311 .'4 24,939.96 7,586,65 17,353.31 57,845.56 75,198.87 13,020.52 EARNED SURPLUS - END OF PERIOD 62,178.35 $54,308.06 68.12 67.20 26,513.33 31.15 32.80 1.30 .73 80,822,65 100.00 I00.00 22,225.67 27.27 27.50 18,279.34 23.60 22.62 13 223.80 22.10 16.36 53,728.81 72.97 66.48 27,093.88 27.03 33.52 10,853.74 8.22 13.43 16,240.14 18.81 20.0;) K 45,780.41 62,020.55 4,174.99 57,845,56 Page 8 CITY OF MOAB Water & Sewer Fund MATERIALS, SUPPLIES & SERVICES Subscription & Memberships Ordinances & Publications Travel Office Expense & Supplies Equipment Expense Buildings & Grounds Expense Special Departmental Supplies Equipment Rental Professional & Technical Services Other TOTAL MATERIALS, SUPPLIES & SERVICES OTHER CHARGES Insurance & Surety Bonds Employee Benefits Interest - Other Than Bonds Depreciation Sundry Charges TOTAL OTHER CHARGES OPERATING EXPENSES 12 Months Ended May 31, 1960 & 1959 12 MONTHS ENDED MAY 31, 1060 195r $ 33.00 13.50 876.4i 402.82 1,762.29 3,245.83 5,248.13 172.50 '0,013.02 21,767.50 $ 786.81E 1,850.12 4,000.00 13,754.09 1.08 20,332.13 `.� OF SALES 1960 1y59. $ 128.98 .04 .i6 .oi 275.73 .95 .34 694.98 .44 .86 2,571.18 1.91 3.18 6,990.64 3.52 8.65 1,310.84 5.69 1.62 14.55 .19 .02 6,181.44 10.85 7.65 111 .0o .14 18,279.34 23.60 22.62 $ 396.10 1,350.94 11,278.13 198.63 .85 2.00 4.34 14.91 . 1+9 1.67 13.95 . 25 13,223.80 22.10 16.36 Page 9