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Home My Public Portal About1960-1961 Audit Water and Sewer FundC I T Y OF MOAB MOAB, UTAH REPORT ON EXAMlNATI ON WATER & SEWER FUND May 31, 1961 12 Months Ended May 31, 1961 INDEX Page Accountant's Report 1 Comparative Balance Sheets, May 31, 1961 & 1960 Assets 6 Liabilities, Contributions, deserves & Surplus Income & Expense, May 31, 1961 & 1960 Operating Expenses, May 31, 1961 & 1960 7 8 9 E. J. CLAUS EERTIEIZO PueL,c -'+.'"..COLJNTAHT POST ❑E IEE 6Lo13 ALPINE 3-5:81 MCIA El. UTAH Honorable Mayor & City Council City of Moab Moab, Utah Gentlemen: MEMN_ r! f]4 alM ERI(' r. .L:TITVIE I € have examined the Balance Sheet of the Water & Sewer Fund of the City of Moab as of May 31, 1961 and the related statement of Income & Expense for the year then ended. The examination was made in accordance with generally accepted standards and accordingly include such tests of the records and other procedures as were considered necessary in the circum- stances. ORGANIZATIONS &. 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, 1961, the City Officials responsible for the operation of the Water & Sewer Fund were as follows: CASH accounts at the amounts ACCOUNTS RECEIVABLE Mayor: City Council: K. E, McOougaid Lester M. Erbes Dr. Paul Mayberry Richard S. Parsons Edd Provonsha Eben Scharf Administrative Assistent to the Mayor: Darrell Reardon SCOPE OF WORK PERFORMED Cash in banks, aggregating $3,672.27 in the General operating account and $26,370.75 in the various Bond Sinking Fund May 31, 1961 was verified by reconciling the citys records to confirmed directly to us by the Depositories. Water & Sewer accounts receivable outstanding at December 31, 1960 and May 31, 1961 were tested by negative confirmations. In addition, tests were also made of the details shown on the city records. Page I An aging of the Water & Sewer Accounts Receivable discloses the following; % OF PERIOD OUTSTANDING AMOUNT TOTAL - Current $ 9,778.02 68-.40 30 Days 2,125.60 14.87 60 Days 916.41 6.41 90 Days & Over 1.476,08 10.32 $14,296.11 100.00 INVENTORY The inventory taken by the city employees as of May 31, 1961, was test counted by us on the same date. Prices, extentions and footings were also tested. The large reduction in the in- ventory figure is due primarily to materials in stock May 31, 1960, which were used in making extentions to the Water distribution system. INVESTMENTS Investments of the various Bond Sinking Funds in United States Obligations were all held by the trust depart- ments of the various banks involved and were confirmed by us. OTHER ASSETS All other assets were reviewed with responsible city officials. LIABILITIES The liabilities were reviewed by test comparison with vendors' statements for subsequent periods. Other liabilities were reviewed, examined and reconciled to the city records. RESERVE FOR The reserve for bond retirement, their corresponding BOND RETIRE- sinking fund requirements as set forth In the respective MENT bond ordinances were reviewed in detail. SUMMARY The examination was directed primarily to a verification of the Balance Sheet of the plater & Sewer Fund as of May 31, 1961, and to a general review of the results of operations for the year then ended. 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 scrutinexed by us in connection therewith. To the extent such documents and entries were examined and based on information and ex- planations 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. COMMENTS UNIFORM The Utah Uniform System of Accounts adapted in 1959 has SYSTEM OF now been In operation long enough to make the financial ACCOUNTS statements for 1960 and 1961 fiscal years comparable. Page 2 WATER CONSUMPTION 1n the year covered by this review 263,256,000 gallons of water were recorded on customers meters. This is an Increase of 31,894,000 gallons over the previous years consumption. The average number of connections increased from 771 to 841. Variations throughout the year in the number of connections and quantities of water consumed are; shown in the following table: MONTH CONNECTIONS 1.000 GALLONS June 1960 8o4 31,934 July 813 43,785 August 815 35,689 September 834 24,518 October 84i 13,371 November 840 12,156 December 846 14,194 January 1961 845 12,376 February 8$1 14,762 March 860 16,926 April $65 17,917 May 878 25,628 TOTAL CONSUMPTION 263,256 SINKING in order to insure that all sinking funds are main - FUNDS twined in the 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, 1961, all funds were current through June 30, 1962. Date of Bonds TOTAL Original Principal $216,000,00 Outstanding 5/31/61 175,500.00 RESERVE FOR BOND RETIREMENT REP- RESENTING cua- IRENT SINKING FUND BALANCES Cash in flank Investments Accrued Interest 6/1/51 7/1/51 7/1/54 7/1/56 $15,000,00 $2,000.00 $60.000.00 $49,000.00 6,000.00 69,000,00 58,5 00.00 42 000.0_0 26,370.75 2,629.49 5,804.70 7,443.13 1o,493.43 33,444.32 1,97o.51 17,487.23 9,492.51 4,494.o7 282.86 25,39 162.72 73.96 21.o2 60,097.93 4,625,09 23,454.65 17,00a,60 15,003.59 CUMMULATI VE PAYMENTS Made to May 31, 1961, from Princi- 40,500.00 9,000.00 23,000.00 1,500.00 7,000.00 pal Interest 62,1 36, 25 44 o8o oo 31 ,010.00 21,326,25 5,120,00 102,636F25 13.080.00 54,Olo.00 24826.25 12,720.00 TOTAL -REPRESENTING TOTAL TRANSFERS TO SINKING FUNDS 162,734.18 17,705.09 77,464.65 39,835.85 27,728.59 Page 3 LESS - SINKING FUND PAYMENTS REQUIRED BY ORDINANCE THROUGH 1962 ANNIVERSARY EXCESS AT MAY 31, 1961 OVER RE- QUIREMENTS THROUGH $159.971.25 "17,680.00 $75.070.00 $39,625.00 $27,596.00 1962 ANNIVERSARY _ 2,762.93 25,09 2j394.65 210.85 132,34 CASH REQUIREMENTS, JUNE 1,1961 THROUGH MAY 31, 1962 June 1,1961 Principal 1,000.00 1,000.00 June 1,1961 Interest 120.00 120.00 July 1,1961 Principal 5,500.00 July 1,1961 Interest 3,566.25 Dec. 1,1961 interest 100.00 100.00 Jan. 1,1962 Interest 3.465.00 3,000.00 500.00 1,380.00 1,608.75 1.320.00 1.595,00 2,000.00 577.50 550.00 TOTAL 1.3,751.25 1.220.00 5,100.00 3.70 .75 3,127,50 DUE TO OTHER FUNDS The 1,000,000 gallon water storage tank was financed CONTINGENT by issueing $200,000 of General Obligation Bonds. However it is our understanding that it is the intent of the City Officials to make payments on the obligation from the Water & Sewer Fund to the extent that this fund received direct benefits and to the extent that funds are available without impairing either the operations of the fund or its obligations under Its Revenue .fond Ordinances. INSURANCE Insurance policies and Surety bonds in force May 31, COVERAGE & 1961, were examined. Insurance coverage consisted of SURETY BONDS fire and extended coverage on structures and equip- ment, workmens compensation, fire, theft, collision or upset, and liability insurance on motor vehicles. Surety bonds were in force for all employees whose duties require the handling of cash of the Water & Sewer Fund. A list of the policies carried by the entire City of Moab which also pro- tects the Water & Sewer Departments are listed below: LIMITS OF POLICY $ 10,000.00 2,500.00 59,130.00 18,500.00 i6,650.o0 RISKS COVERED INSURER Treasurers Bond American Surety Co, of N.Y. Employees Blanket American Surety Bond Co. of N.Y. Fire & extended American Surety coverage Co. of N.Y, Fire & extended Utah Home Fire coverage Ins. Co. Fire & extended Home Insurance coverage Co. of N.Y, EXPIRATION DATE 4/1/62 4/9/64 2/21/64 2/27/64 2/ 27/64 LIMIT'S OF POLICY RISKS COVERED $ 42,000.00 Fire it extended coverage $100.00 Deductable Comprehensive collision A.C.V. 200,000.00 200,000.00 25,000.00 25,000.00 By law 16,000.00 Bodily Injury Auto Bodily Injury Other Property Damage Auto Property Damage Other Workmen Compensation Contractor Equipment INSURER Hanover Ins. Co. N.Y. Western Assur- ance Co. Western Assur- ance Co, Western Assur- ance Co. Western Assur- ance Co. Western Assur- ance Co. State ins. Fund Glen Falls Ins. Co. Very t,,ra�ly yours, • I • EXPIRATION DATE 2/ 27/64 1/2/62 1/2/62 1/2/62 1/2/62 1/2/62 6/3O/61 2/14/63 Ce/ t I f l ed Public Accountant Page 5 CITY OF MOAB COMPARATIVE BALANCE SHEETS Water & Sewer Fund May 31, 1961 & 1960 ASSETS MAY 31, INCREASE 1961 1960 (DECREASE) CURRENT ASSETS Cash on Band & in General Bank Account $ 3,672.27 $ 6,697.22 $(3,024.95) Accounts Receivable 20,956.11 11,102,59 9,853.52 operating Supplies Inven- tory _5,014.96 12,147.22 0,132.26) Total Current Assets ?q1643.34 29,947.03 33 BOND SINKING FUNDS Cash in Banks 26,370.75 24,427.91 1,942.84 Investments in U.S. Treas- ury Bonds 33,444.32 33,396.82 47.50 Interest Receivable 282.86 277,29 5,57 Total Bond Sinking Fund Assets 60_,097.93 58,102.02 __1,295.,al FIXED ASSETS Plant & Equipment 1,051,280.74 1,009,632.64 41,648.10 Automobiles & Trucks 17,547.89 15,647.89 1,900.00 Office Furniture & Fixtures 2,745.60 2t745.60 -- 1,071,574.23 1,028,026.13 43,543.10 Accumulated Depreciation (97,363.56) (81.909.19) (15.454.n) Net Fixed Assets TOTAL ASSETS 974,210.67 946ji 6.94 $1,063,951.94 $1,034,165.99 28,053.73 $ 29.785 ..95 Page 6 r CITY OF MOAB COMPARATIVE BALANCE SHEETS Water � Sewer Fund May 31, 1961 & 1960 LIABILITIES, CONTRIB- UTIONS, RESERVES & SURPLUS LIABILITIES Accounts Payable Due General Fund Accrued Interest on Bonds Customers` Deposits Revenue Bonds Contingent Liability to General Fund Total Liabilities 1961 MAY 31, INCREASE $ 1,399.88 $ 25,000.00 3,211.88 1,473.71 175,500.00 1960 (DECREASE) 3,035.83 3,196.23 1,204.63 182,000.00 206,927.34 216, 927.34 413,512.81 4°6,364.03 CONTRIBUTIONS Municipality 277,320.49 Federal 133,509.44 Other 109,953.29 Total Contributions Reserve for Bond :Retirement Earned Surplus TOTAL LIABILITIES, CONTRIBUTIONS RESERVES & SURPLUS 520,783.22 60,097.93 69,557.98 277,320.49 133,509.44 96,691.66 $(1,635.95) 25,000.00 15.65 269,08 (6,500.00) (10.000.00) 71148,78 13.261.63 501,521.5_9 13,261.63 258,102.02 1095.91 623178.35 7,379.63 $1,063,951.94 $1,Q4,165.99 $2 ,785.95 Page 7 CITY OF MOAB Water & Sewer Fund INCOME & EXPENSE 12 Months Ended May 31, 1961 & 1960 12 MONTHS ENDED MAY 31. !o OF SALES 1961 QUI 1961 1960 INCOME Water Sales $ 70,622.76 $ 62,841.49 67.94 68.12 Sewer Rentals 33,250.78 28,733.05 31.99 31.15 Other 69,60 677,36 .07 t7.3 Total Income 103,943.14 92,251.90 100,00 100�00 OPERATING EXPENSES Salaries & Wages 29,477.13 25,152.31 28.36 27.2.7 Materials, Supplies & Services 34,308.92 21,767.50 33.01 23.60 Other Charges 23,892.65 20.392.13 22.98 22.10 Total Operating Expenses 87,678.70 67,311.94 84.35 72.97 NET OPERATING PROFIT 16,264.44 24,939.96 15.65 27.03 NON -OPERATING EXPENSE Interest on Bonds NET INCOME 7,389.40 7,586.65 7.11 8.22 8,875.04 17,353.31 8.54, 18.81 Earned Surplus - beginning of Period 62,178.35 57,84 .56 71,053.39 75,19 .87 Less: Transfers to Reserve for Bond retirement 1,495.41 13,020.52 EARNED SURPLUS - END OF PERIOD 1 69,55 98 62» 78.3rj Page 8 CITY OF MOAB Water & Sewer Fund MATERIALS, SUPPLIES & SERVICES Subscription & Memberships $ Ordinances & Publications Travel Office Expense & Supplies Equipment Expense Building & Ground Expense Special Departmental Supplies Equipment Dental Professional & Technical Services TOTAL MATERIAL, SUPPLIES & SERVICES OTHER CHARGES Insurance & Surety Bonds Employee Benefits Interest - Other Than Bands Depreciation Sundry Charges INCOME & EXPENSE 12 Months En4ed May 31, 1961 & 1960 12 MONTHS ENDED MAY 31, % OF sALEs 1961 1960 _ 1961 1960 163.55 111.40 832.00 634.70 2,007.11 3,568.30 14,802.39 2,046,.50 10042.97 34,308.92 614.17 2,074.11 5,750.0o '5,454.37 $ 33.00 016 13.50 .11 876.41 .80 402.82 .61 1,762.29 i.93 3,245.83 3.43 5,248.13 14.24 172.5o 1.97 .04 .01 .95 .44 i.91 3.52 5.69 .19 10,013.02 9.76 10.85 21,76Z..50 33.01 23,60 786.84 .59 .85 1,850.12 2.00 2.00 4,o0o.00 5,53 4.34 13,754.09 14.86 i4.91 1.08 __ TOTAL OTHER CHARGES 23182.65, $ 20,392,13 22.98 22.10 Page 9