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Home My Public Portal About1986-1987 AuditCITY OF MOAB Grand County, Utah REPORT ON EXAMINATION June 30, 1987 & Twelve Months Ended June 30, 1987 E. J. Claus CERTIFIED PUBLIC ACCOUNTANT CITY OF MOAB Grand County, Utah INTRODUCTORY SECTION CITY OF MOAB TABLE OF CONTENTS INTRODUCTORY SECTION Table of Contents Letter of Transmittal FINANCIAL SECTION Auditors' Report 1 General Purpose Financial. Statements Combined Balance Sheet - All Fund Types & Account Groups 4 Combined Statement of Revenues, Expenditures and Changes In Fund Balances - All Government Fund Types 8 Combined Statement of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual - General Fund Types 9 Combined Statement of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual - Special Revenue Fund Types 10 Combined Statement of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual - Debt Service Fund Types 11 Combined Statement of Revenues, Expenditures and Changes In Retained Earnings/Fund Balances - All Proprietary Fund Types 12 Combined Statement of Changes in Financial Position - All Proprietary Fund Types 13 Notes to Financial Statements 14 Combining and Individual Financial Statements General Fund - Analysis of Revenues, Comparison With Budget and Prior Year 23 General Fund - Analysis of Expenditures, Comparison With Budget and Prior Year 24 Revenue Sharing Accountant's Report on Internal Control 27 Accountant's Report on Compliance 29 Accountant's Report on the Schedule of Federal Assistance 30 Schedule of Federal Assistance 31 MAYOR: TOM STOCKS COUNCIL MEMBERS: WILLIAM D. McDOUGALD TERRY WARNER DAVE BIERSCHIED DAVID SAKRISON CHRISTINE ROBBINS RECORDER: RAY PENE DEPUTY -RECORDER: SANDRA BEAUREGARD TREASURER: LYNDA MOORE DEPUTY -TREASURER: MARGET SNYDER POLICE CHIEF: ALAN WEST ENGINEER: TIM KEOGH UTILITIES SUPERINTENDENT: LARRY JOHNSON BUILDING INSPECTOR: JOHN BROWN City Council Members 150 East Center Street Moab, Utah 84532 Councilmen: City of Moab 150 EAST CENTER STREET MOAB, UTAH 84532 (801) 259-5121 February 2, 1988 Moab City Police 121 East Center Street Moab, Utah 84532 (801) 259-8938 Building Inspector/ Zone Administrator 125 East Center Street Moab, Utah 84532 (801) 259-7839 The annual financial report of examination of the City of Moab, Grand County, Utah for the fiscal year ended June 30, 1987 is submitted herewith. In accordance with the laws of the State of Utah, the annual audit of the accounts, records, and financial statements has been completed, and the indepen- dent auditor's report has been included herein. Also included are the audited financial statements with supporting schedules and footnotes and the tabulation of the City's assets. This information presents the financial activities and condition of the City for the fiscal year ended June 30, 1987. The comments and recommendations of our independent auditor, E. J. Claus, Certified Public Accountant, are being studied by the staff in the areas referred to. I feel that upon completion of these, the City will be operating within the best possible framework as required by our State Auditor's office. The preparation of this report could not have been accomplished without the efficient and dedicated services of our entire staff. I should like to express my appreciation to all members of the staff who assisted and contributed to its presentation. I should also like to thank the members of the City Council for their interest and support in planning and conducting the financial operation of the City in a responsible manner. Respectfully submitted, Thomas Stocks Mayor CITY OF MOAB Grand County, Utah FINANCIAL SECTION E. J. Claus CERTIFIED PUBLIC ACCOUNTANT P.O. BOX 636, 94 GRAND AVENUE, MOAB, UTAH 84532 To the City Council City of Moab Moab, Utah 84532 SOT-259-7221 I have examined the general purpose financial statements of the City of Moab, State of Utah, as of and for the year June 30, 1987 as listed in the table of contents. The examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as were considered necessary in the circumstances. In my opinion the general purpose financial statements referred to above present fairly the financial position of the City of Moab, State of Utah, at June 30, 1987 and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. E laus Certified Public Accountant Moab, Utah December 30, 1987 1 MIN Nil INN 11111■ INN INN NMI 11M11 IMO NM INN r 1=1 MN MN NM Mil =I INII CITY OF MOAB Grand County, Utah GENERAL PURPOSE FINANCIAL STATEMENTS 3 CITY OF MOAB Moab, Utah GOVERNMENTAL FUND TYPES SPECIAL DEBT ASSETS GENERAL REVENUE SERVICE Cash $ 299,657 $ 3,553 $ 21,943 Receivables - Net Utilities Special Assessments 6,650 Other 439 Due from Other Governmental Units 1,741 Due from Other Funds 1,500 Inventory, at Cost Land Buildings Improvements Other than Buildings Machinery and Equipment Autos and Trucks Office Furniture and Fixtures Accumulated Depreciation Amount Available in Debt Service Amount to be Provided for Payment of Bonds TOTAL ASSETS $ 309,987 See Accompanying Notes to Financial Statements $ 3,553 21t943 4 COMBINED BALANCE SHEETS ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1987 PROPRIETARY FIDUCIARY ACCOUNT GROUPS FUND TYPE FUND TYPE GENERAL CAPITAL TRUST AND FIXED LONG-TERM PROJECTS ENTERPRISE AGENCY ASSETS DEBT $ 118,945 $ 44,229 $ 31,016 41,015 6,725 1,242 77,496 1,196,117 2,432,687 144,905 30,709 4,902 (1,574,429) $ 56,877 558,828 650,407 399,291 302,465 75,890 $ 21,943 273,057 118,945 $ 2,405,598 $ 31,016 $ 2,043,758 $ 295000 5 CITY OF MOAB Moab, Utah GOVERNMENTAL FUND TYPES SPECIAL DEBT LIABILITIES AND FUND EQUITY GENERAL REVENUE SERVICE Vouchers Payable Accrued Liabilities Customers' Deposits Payable Due to Other Funds Bonds Payable Total Liabilities $ 20,325 46 20,325 46 Contributed Capital From Municipal From Federal From Other Invested in Fixed Assets Reserve for Bond Retirement Retained Earnings Fund Balance _ Reserved: Class C Road (_100,_07 Reserved: Revenue Sharing 40 Statutory Restricted Unreserved 189,549 Total Fund Equity 289,662 TOTAL LIABILITIES AND FUND EQUITY $ 309,987 See Accompanying Notes to Financial Statements 3,507 $ 21,943 3,507 21,943 $ 3,553 $ 21,943 6 COMBINED BALANCE SHEETS ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1987 PROPRIETARY FIDUCIARY ACCOUNT CROUPS FUND TYPE FUND TYPE GENERAL GENERAL CAPITAL TRUST AND FIXED LONG-TERM PROJECTS ENTERPRISE AGENCY ASSETS DEBT 1,407 $ 1,843 30,711 1,500 188,000 1,407 222,054 1,214,992 325,268 758,152 31,700 (146,568) 117,538 $ 31,016 $ 295,000 31,016 295,000 $ 2,043,758 117,538 2,183,544 2,043,758 $ 118,945 $ 2,405,598 $ 31,016 $ 2,043,758 $ 295,000 7 CITY OF MOAB COMBINED STATEMENT OF REVENUES, EXPENDITURES Moab, Utah AND CHANGES IN FUND BALANCES - ALL GOVERNMENT FUND TYPES For the Year Ended June 30, 1987 I� GOVERNMENTAL FUND TYPES SPECIAL DEBT GENERAL REVENUE SERVICE REVENUES ' Taxes $ 625,194 Licenses 327,988 Intergovernmental 119,798 $ 6,300 I Charges for Services 296,386 17,963 Fines and Forfeitures 10,677 Miscellaneous 33,198 483 $ 1,648 Total Revenues 1,413,241 24,746 1,648 I EXPENDITURES I Current - General Government 252,368 Public Safety 387,226 I Highways and Public Improvements 458,231 Parks and Public Property 127,946 40,945 Conservation and Economic Development 19,252 Economic Opportunity 25,042 Debt Service - 35,000 Principal Retirement Interest and Finance 12 599 Charges Total Expenditures 1,270,065 40,945 47,599 Excess of Revenues Over (Under) , Expenditures 143,176 (16,199) (45,951} OTHER FINANCING SOURCES (USES) 7,500 47,600 ' Operating Transfers In Operating Transfers Out (77.700) Total Other Financing Sources (Uses) (77,700) 7,500 47.600 ' Excess of Revenues and Other Sources ' Over (Under) Expenditures and 65,476 (8,699) 1,649 Other Uses Fund Balance - Beginning of Year 224,186 12,206 20,294 1 FUND BALANCE - END OF YEAR $ 289,662 $ 3,507 $ 21,943. See Accompanying Notes to Financial Statements i CITY OF MOAB Moab, Utah REVENUES Taxes Licenses Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Total Revenues COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND TYPES For the Year Ended June 30, 1987 EXPENDITURES Current - General Government Public Safety Highways and Public Improvements Parks and Public Property Conservation and Economic Development Economic Development Debt Service - Principal Retirement Interest and Finance Charges Total Expenditures BUDGET $ 642,669 252,000 101,898 253,500 12,000 51,331 1,313,398 264,100 406,000 531,000 140,475 21,725 1,363,300 Excess of Revenues Over (Under) Expenditures (49,902) OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out (77,700) Total Other Financing Sources (Uses) (77,700) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses (127,602) Fund Balance - Beginning of Year 224,186 FUND BALANCE - END OF YEAR $ 96,584 ACTUAL $ 625,194 327,988 119,798 296,386 10,677 33,198 VARIANCE FAVORABLE (UNFAVORABLE) $ (17,475) 75,988 17,900 42,886 (1,323) (18,133) 1,413,241 99,843 $ 252,368 387,226 458,231 127,946 19,252 25,042 1,270,065 143,176 (77,700) (77,700) 65,476 224,186 289,662 11,732 18,774 72,769 12,529 2,473 (25,042) 93,235 193,078 193,078 193,, 078. See Accompanying Notes to Financial Statements 9 CITY OF MOAB Moab, Utah REVENUES Taxes Licenses Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - SPECIAL REVENUE FUND TYPES For the Year Ended June 30, 1987 BUDGET 21,400 18,000 Total Revenues 39,400 EXPENDITURES Current - General Government Public Safety Highways and Public Improvements Parks and Public Property Conservation and Economic Development Economic Opportunity Debt Service - Principal Retirement Interest and Finance Charges 57,024 Total Expenditures 57,024 VARIANCE FAVORABLE ACTUAL (UNFAVORABLE) 6,300 $ (15,100) 17,963 (37) 483 483 24,746 (14,654) 40,945 16,079 40,945 16,079 Excess of Revenues Over (Under) Expenditures (17,624) (16,199) 1,425 OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out 7,500 Total Other Financing Sources (Uses) 7,500 Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses (10,124) Fund Balance - Beginning of Year 10,124 FUND BALANCE - END OF YEAR $ See Accompanying Notes to Financial Statements 7,500 -0- 7,500 -0- (8,699) 1,425 12,206 2,082 -0- $ 3,507 3 507 10 CITY OF MOAB Moab, Utah COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - DEBT SERVICE FUND TYPES For the Year Ended June 30, 1987 BUDGET VARIANCE FAVORABLE ACTUAL (UNFAVORABLE) REVENUES Taxes Licenses Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous $ 1,000 $ 1,648 $ 648 Total Revenue 1,000 1,648 648 EXPENDITURES Current - General Government Public Safety Highways and Public Improvements Parks and Public Property Conservation and Economic Development Economic Opportunity Debt Service - Principal Retirement 35,000 35,000 Interest and Finance Charges 12,600 12,599 1 Total Expenditures 47,600 47,599 1 Excess of Revenues Over (Under) Expenditures (46 600) (45,951) 649 OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers out 47,600 Total Other Financing Sources (Uses) 47,600 47,600 -0- 47,600 -0- Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses 1,000 1,649 649 Fund Balances - Beginning of Year -0- 20,294 20,294 FUND BALANCE - END OF YEAR $ 1,000 $ 21,943 $ 20,943 See Accompanying Notes to Financial Statements 11 CITY OF MOAB Moab, Utah COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE - ALL PROPRIETARY FUND TYPES June 30, 1987 INTERNAL ENTERPRISE SERVICE FUND FUND Water Sales $ 236,100 Sewer Charges 208,525 Fuel Sales $ 17,355 Miscellaneous 5,206 Total Operating Revenue 449,831 17,355 Salaries, Wages and Benefits 250,737 Materials, Supplies and Service 40,711 Professional Services 4,171 Special Departmental Supplies 30,969 Other 12,000 Bad Debts Depreciation 103,331 Special Projects 35,000 Total Operating Expenditures Operating Income (Loss) Water Connections Interest Income Interest Expense Nonoperating Revenues (Expenses) Income (Loss) Before Operating Transfers Operating Transfers In (General Fund) Net Income Retained Earnings/Reserves/Contributions - Beginning of Year 17,355 476,919 17,355 (27,088) -0- 1,351 3,016 (8,458) (4,091) (31,179) 22,600 (8,579) -0- -0- 2,192,123 -0- RETAINED EARNINGS/RESERVES/CONTRIBUTIONS - END OF YEAR $ 2,183,544 $ 0� See Accompanying Notes to Financial Statements 12 CITY OF MOAB Moab, Utah COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES June 30, 1987 INTERNAL ENTERPRISE SERVICE FUND FUND SOURCES OF WORKING CAPITAL Operations Net Income $ (8,574) Depreciation 103,330 Working Capital Provided by Operations 94,751 Increase in Customers` Deposits 557 '.Total Sources of Working Capital 95,308 USES OF WORKING CAPITAL Retirement of Debt Fixed Assets Additions 22,000 29,133 Total Uses of Working Capital 51,133 NET INCREASE (DECREASE) IN WORKING CAPITAL $ 44,175 ELEMENTS OF INCREASE (DECREASE) IN WORKING CAPITAL Cash $ 8,461 $ 206 Receivables - Net 258 Inventory 694 Vouchers Payable 3,456 Due to Other Funds (General Fund) 32,000 (900) NET INCREASE (DECREASE) IN WORKING CAPITAL See Accompanying Notes to Financial Statements $ 44,175 $ -0- 13 CITY OF MOAB NOTES TO FINANCIAL STATEMENTS Moab, Utah June 30, 1987 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements are presented in conformity with generally accepted accounting principles as applicable to governments. The following is a summary of the more significant accounting policies affecting their presentation. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various'funds are grouped, in the financial statements in this report, into generic fund types and broad fund categor- ies as follows: Governmental Funds General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resour- ces except those required to be accounted for in another fund. Special Revenue Funds - The Special Revenue Funds account for revenues derived from specific taxes or other earmarked revenue sources. The Revenue Sharing and the Class C Road Funds, while being Special Revenue Funds, are required to be reported in the General Fund by the State Auditor, which is an optional reporting method under Generally Accepted Accounting Principles. Debt Service Fund - The General Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, capitalized lease obligations, interest, and related costs. Capital Project Funds - Capital Project Funds are used to account for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). Principal sources of revenue are transfers from other funds, principally the Revenue Sharing Funds. Proprietary Funds Enterprise Fund - The Water and Sewer Fund is used to account for the operations of the Water and Sewer Utility 14 CITY OF MOAB Moab, Utah NOTES TO FINANCIAL STATEMENTS June 30, 1987 Enterprise Fund. Enterprise Funds are used to account for operations (a) which are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Internal Service Funds - The Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, on a cost -reimbursement basis. Fixed Assets and Long -Term Liabilities The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measure- ment focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is conside- red a measure of "available spendable resources". Governmen- tal fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutter, streets and sidewalks, drainage systems, and lighting systems, have not been capitalized. Such assets are normally immovable and of value only to the City; therefore, the purpose of stewardship for these items is satisfied without the recording of these assets. No depreciation has been provided for general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated (See Note E). 15 CITY OF MOAB Moab, Utah NOTES TO FINANCIAL STATEMENTS June 30, 1987 Long-term liabilities expected to be financed from governmen- tal funds are accounted for in the General Long -Term Debt Account Group, not in the governmental funds. The General Fixed Assets and General Long-term Debt account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures for fund liabilities. They are instead reported as liabilities in the General Long -Term Debt Account Group. All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or noncur- rent) associated with their activity are included on their balance sheets. Their reported fund equity (net total asset) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Depreciation of all exhaustible fixed assets used by proprie- tary funds is charged as an expense against their operations. Accumulated depreciation is reported on proprietary fund balance sheets, Depreciation has been provided over the estimated useful lives using the straight line method. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Property Taxes are recorded as revenue when levied even though a portion of the taxes may be collected in subsequent years. Penalties and interest, court and miscell- aneous revenues are recorded when received in cash because they are generally not measurable until actually received. Franchise taxes, sales taxes, intergovernmental revenue, and interest income are accrued, if their receipt occurs soon enough after the end of the accounting period so as to be 16 CITY OF MOAB Moab, Utah NOTES TO FINANCIAL STATEMENTS June 30, 1987 both measurable and available. Gross sales taxes are consider- ed "measurable" when in the hands of intermediary collecting governments and are recognized as revenue at that time. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include princi- pal and interest on general long-term debt which is recog- nized when due. All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. Unbilled Water Sewer Fund utility service receiva- bles are recognized at year end. Budgets and Budgetary Accounting The City Council follows these procedures in establishing the budgetary data reflected in the financial statements: (1) A proposed operating budget is submitted to the City Council for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing Chem for the upcoming year, along with estimates for the current year. The budget is submitted in summary form. In addition, more detailed line item budgets are included for administrative control. The level of control for the detailed budgets is at the department head/function level. (2) Public hearings are conducted to obtain taxpayer comment. (3) Prior to June 30, the budget is legally enacted through passage of an ordinance. (4) Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Funds and Debt Service Funds. (5) Budgets Special consistent principles Revenue with (GAAP). for the General, Debt Service, and Funds are adopted on a basis generally accepted accounting (6) Budgetary data for the Capital Project Funds has not been presented in the accompanying combined and combining financial statements, as such funds are budgeted over the life of the respective 1.7 1 CITY OF MOAB NOTES TO FINANCIAL STATEMENT Moab, Utah June 30, 1987 project and not on an annual basis. NOTE B POOLED CASH The City of Moab follows a "pooling of cash" policy, in which all of the cash accounts held by the Treasurer at the local banks are maintained in as few checking accounts as possible. This method enables the City to free -up cash for investing in interest -bearing deposits, and has greatly increased the earnings on investments. The cash -in -bank account shown for each fund is actually each fund's respective share of the pooled cash. The earnings on the investments are allo- cated to the respective funds on a monthly basis. NOTE C INVESTMENTS The City held $518,717 in interest bearing accounts at June 30, 1987, represent- ing 99 percent of its cash balances. Of the invested amount $465,657 was invested in the Utah State Treasurer's Pool, the balance was in interest bearing checking accounts. NOTE D SPECIAL ASSESSMENTS All of the special assessment receivables are delinquent as of June 30, 1987. Collection policies are vague and inoperative, and certain problems exist as to the exact interest and penalty rates assessable by the City. The extent of uncollectible assessments is not determinable at this time; therefore, the problems noted have been brought to the City Council's attention, with the recommendation that the matter be referred to legal counsel to establish the City's proper position on interest, penalties, and collection. The Special Assessment Funds have been closed to the General Fund. NOTE E FIXED ASSETS The City has completed the first phase of an extensive fixed asset inventory. The staff compiled information sheets on each asset, noting date of acquisition, cost of acquisition, description of the asset, and whether or not Revenue Sharing monies were involved. These lists were matched by the city with actual observa- tion of the assets, and were also matched, where possible, with supporting schedules. The fixed asset schedules are not complete. However, they do contain support documentation for some of the capitalized costs remaining on the City's books at June 30, 1987 as adjusted. Certain capitalized amounts were not completely supported, but portions of these did have minute references, legal title descrip- tions, etc. evidencing the City's ownership. Additional research will be needed to fully expand the fixed asset schedules, in detail, to itemize the acquisition blocks. 18 CITY OF MOAB Moab, Utah NOTES TO FINANCIAL STATEMENTS June 30, 1987 Adjustments were made to the fixed asset accounts, accumulated depreciation ac- counts and retained earnings account in the Enterprise Fund. The major portion of these adjustments was to update the accumulated depreciation accounts through June 30, 1987. Additional adjustments may be necessary in the future, as research into the remaining blocks of acquisitions determines. NOTE F BOND PAYMENTS The City of Moab normally transfers the bond principal and interest payments to the paying agents prior to the respective due dates. In accordance with this policy, the City transfers the funds covering the July 1 liabilities on or before June 30, and reflects the payments in the fiscal year ending on June 30. NOTE G ACCOUNTS RECEIVABLE The Enterprise Fund accounts receivable includes $6,725 representing a summary judgement in favor of the City. The receivable is fully enforceable by the City, but collection is not likely in the near future. The City's rights will be maintained and the receivable will remain on the books until collected. NOTE H DUE FROM OTHER GOVERNMENTAL UNITS The amount shown as due from other governmental units consists of $1,741 of the balance of a Grant from the State of Utah, for the Moab Community Youth Center. NOTE I CONTINGENT LIABILITIES The City is not aware of any contingent liabilities that would materially affect the financial statements at June 30, 1987. . NOTE J REVENUE BONDS The City of Moab is obligated for revenue bonds in the following amounts to be paid as indicated below: Year Ended June 30, Payment Interest Principal 1988 30,501 7,501 23,000 1989 30,502 6,502 24,000 1990 31,440 5,440 26,000 1991 31,314 4,314 27,000 1992 31,145 3,145 28,000 1993 30,934 1,934 29,000 1994 31,659 659 31,000 217,495 29,495 188,000 19 1 CITY OF MOAB NOTES TO FINANCIAL STATEMENTS Moab, Utah June 30, 1987 NOTE K GENERAL OBLIGATION BONDS Listed below are the general obligation bonds outstanding and schedule of retirement: Year Ended June 30, Payment Interest Principal 1988 51,000 11,000 40,000 1989 49,400 9,400 40,000 1990 47,800 7,800 40,000 1991 46,200 6,200 40,000 1992 49,500 4,500 45,000 1993 47,700 2,700 45,000 1994 45,900 900 45,000 337,500 42,500 295,000, NOTE L FIXED ASSETS The following schedule shows the changes in fixed assets during the fiscal year ending June 30, 1987. June 30, 1986 Additions Retirements June 30, 1987 1 1) GENERAL FIXED ASSETS Land $ 56,877 $ 56,877 Buildings & structures 558,828 558,828 Improvements other than buildings 649,845 $ 562 650,407 Machinery and equipment 396,224 3,067 399,291 Autos and trucks 287,196 15,269 302,465 Office furniture and fixtures 70,511 5 379 75,890 $2,019,481 $ 24,277 $2,043�758 I 2) WATER & SEWER - Assets at Cost Land $ 77,496 $ 77,496 I Buildings and structures 1,196,117 1,196,117 Improvements other than I buildings 2,428,971 $ 3,716 2,432,687 Machinery and. equipment 119,818 25,087 144,905 Autos and trucks 30,709 30,709 Office furniture and fixtures 4,572 330 4,902 $ 3,857,683 $ 29,133 $ 3,886 816 20 CITY OF MOAB Moab, Utah NOTES TO FINANCIAL STATEMENTS June 30, 1987 June 30, 1986 Additions Retirements June 30, 1987 3) WATER & SEWER - Accumulated Depreciation Buildings & structures $ 293,513 $ 29,135 $ 322,64$ Improvements other than buildings 1,090,113 61,558 1,151,671 Machinery & equipment 64,298 10,108 74,406 Autos & trucks 20,321 2,126 22,447 Office furniture & fixtures 2,854 403 3,257 21 CITY OF MOAB Grand County, Utah COMBINING AND INDIVIDUAL FINANCIAL STATEMENTS 22 CITY OF MOAB Moab, Utah TAXES Property Taxes General, Sales & Use Taxes Franchise Taxes Total Taxes LICENSES & PERMITS Business Licenses Other Licenses Total Licenses & Permits .Tune 30, GENERAL FUND - ANALYSIS OF REVENUES, COMPARISON WITH BUDGET & PRIOR YEAR 1987 1986 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) ACTUAL $ 197,669 $ 219,755 $ 22,086 $ 146,870 400,000 361,704 (38,2960 375,437 45,000 43,735 (1,265) 43,243 642,669 625,194 (17,475) 565,550 247,000 320,806 73,806 235,612 5,000 7,182 2,182 4,772 252,000 327,988 75,988 240,384 INTERGOVERNMENTAL REVENUE Federal Shared Revenue 18,898 15,852 (3,046) 89,150 State Grants 83,000 102,146 19,146 82,027 Other Local Units 1,800 1,800 Total Intergovernmental Revenue 101,898 119,798 17,900 171,177 CHARGES FOR SERVICES Parks & Public Property 53,500 51,076 (2,424) 93,733 Public Health - Sanitation 200,000 245,310 45,310 206,939 Total Charges for Services 253,500 296,386 42,886 300,672 FINES & FORFEITURES Fines & Forfeitures 12,000 10.677 (1,323) 7,998 Total Fines & Forfeitures 12,000 10.677 (1,323) 7,998 MISCELLANEOUS Interest 7,700 18,854 11,154 18,572 Rents & Concessions 5,200 4,200 (1,000) 4,200 Sale of Assets 6,000 7,538 1,538 4,050 Miscellaneous 32,431 2,606 (29,825) 35,070 Total Miscellaneous 51,331 33,198 (18,133) 61,892 TOTAL REVENUES $ 1,313,398 $ 1,413,241 $ 99,843 $ 1,347,673 23 CITY OF MOAB Moab, Utah VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) GENERAL GOVERNMENT Executive & Central Staff $ 23,500 $ 19,155 $ 4,345 Administrative 88,000 82,949 5,051 General Governmental Buildings 149,600 149,252 348 Elections Planning 3,000 1,012 1,988 Total General Government 264,100 252,368 11,732 PUBLIC SAFETY Police Department 348,000 330,361 17,639 Animal Control 37,000 35,865 1,135 Flood Control 21,000 21,000 Total Public Safety 406,000 387,226 18,774 HIGHWAYS & PUBLIC IMPROVEMENTS Highways 286,000 216,676 Sanitation 245,000 241,555 69,324 3,445 Total Highways & Public Improvements 531,000 458,231 72,769 PARKS & PUBLIC PROPERTY Parks 88,000 84,428 3,572 Swimming Pool 47,000 38,044 8,956 Recreation/Golf Course 5,475 5,474 1 Total Parks & Public Property 140,475 127,946 12,529 COMMUNITY & ECONOMIC DEVELOPMENT General 21,725 19,252 2,473 Total Community & Economic Development 21,725 19,252 2,473 ECONOMIC OPPORTUNITY Moab Community Youth Center 25,042 (25,042) Total Economic Opportunity 25,042 (25,042) TOTAL EXPENDITURES Year_Ended June 30, 1987 $ 1,363,300 Year Ended June 30, 1986 $ 1,381,747 $ 1,270,065 $ 93,235 $ 1,359,589 $ 22 158 24 GENERAL FUND - ANALYSIS OF EXPENDITURES, COMPARISON WITH BUDGET & PRIOR YEAR For the Year Ended June 30, 1986 DETAIL OF ACTUAL EXPENDITURES YEAR ENDED SALARIES, MATERIALS, JUNE 30, WAGES & SUPPLIES & OTHER CAPITAL 1986 BENEFITS SERVICES CHARGES OUTLAY ACTUAL $ 14,943 44,321 5,985 65,249 253,650 21,777 $ 3,712 $ 500 $ 20,492 27,304 11,324 111,371 77,396 $ 61,111 4,760 74,017 2,471 1,012 7 109,424 61,111 62,528 14,010 3,000 275,427 79,538 85,192 127,147 241,555 16,584 208,358 14,183 358,884 78 39,796 18,000 1,585 32,261 400,265 4,337 281,417 226,974 85,192 368,702 37,126 25,577 62,703 21,944 10,467 5,474 32,411 5,474 4,337 508,391 25,358 2,000 52,715 63,701 43,662 27,358 160,078 19 252 82,497 16,854 16,854 $ 505,425 511,883 19.252 82,497 8,188 8,188 $ 598,263 $ 85,837 $ 80,540 $�1 359,589 $ 655,552 $ 91,208 $ 100,946 $ 1,359,589 25 CITY OF MOAB Grand County, Utah REVENUE SHARING 26 E. J. Claus CERTIFIED PUBLIC ACCOUNTANT P.O. BOX636, 94GRAND AVENUE, MOAB, UTAH84532 To the Moab City Council City of Moab, State of Utah 801 259-7221 I have examined the general purpose financial statements of the City of Moab, State of Utah, for the year ended June 30, 1987, and have issued my report thereon dated December 30, 1987. As part of my examination, I made a study and evaluation of the system of internal accounting control of the City of Moab, State of Utah, to the extent I considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial and compliance audits contained in the U.S. General Accounting Office Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. For the purpose of this report, I have classified the significant internal account- ing controls in the following categories: Internal Accounting Control A. Cycles of the Entities' Activity 1. Treasury or financing. 2. Revenue/receipts. 3. Purchases/disbursements. 4. External financial reporting. B. Financial Statement Captions 1. Cash and cash equivalents. 2. Receivables. 3. Inventory. 4. Property and equipment. 5. Payables and accrued liabilities. 6. Debt. 7. Fund balance. C. Accounting Applications 1. Billings. 2. Receivables. 3. Cash receipts. 4. Purchasing and receiving. 5. Accounts payable. 6. Cash disbursements. 7. Payroll. 8. Inventory control. 9. Property and equipment. 10. General ledger. Internal Administrative Control Criterion used is the bearing which particular controls have on the reliability of financial statements and are designed to insure adherence to major compliance areas. My study included all of the control categories listed above. The purpose of my study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the entity's financial statements. My study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. 27 The management of the City of Moab, State of Utah, is responsible for establish- ing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregulari- ties may nevertheless occur and not be detected. Also, projection of any evalua- tion of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of com- pliance with the procedures may deteriorate. The results of my tests indicate that for the items tested, the City of Moab, complied with those provisions of laws and regulations, noncompliance with which could have a material effect on the general purpose financial statements. Nothing came to my attention that caused me to believe that for the items not tested, the City of Moab was not in compliance with laws or regulations which could have a material effect on the City's general purpose financial statements. This report is intended solely for the use of the City and the applicable Federal Agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City of Moab, is a matter of public record. E Maus Certified Public Accountant Moab, Utah December 30, 1987 1 28 E. J. Claus CERTIFIED PUBLIC ACCOUNTANT P.O. BOX636, 94GRAND AVENUE, MOAB, UTAH 84532 801-259-7221 City Council Members City of Moab Moab, Utah 84532 I have examined the Schedule of Grant Activity of the City of Moab, State of Utah for the fiscal year ended June 30, 1987, and have issued my report thereon. My examination was made in accordance with generally accepted auditing standards; the provisions of the U. S. General Accounting Office Standards for Audit of Governmental Organizations, Activities, and Functions as they pertain to finan- cial and Compliance audits; the Single Audit Act of 1984; the provisions of OMB Circular A-128, Audits of State and Local Governments; and the audit provisions of OMB Circular A-102, Attachment P, and accordingly included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. In connection with examination referred to above, I selected representative charges to federal awards to determine whether federal funds are being expended in accordance with the material terms of applicable agreements and provisions of federal law or regulation. The results of my tests indicate that, for the items tested, the City of Moab complied with the material terms and conditions of the federal award agreements. Further, for the items not tested, based on our examination and the procedures referred to above, nothing came to my attention to indicate that the City of Moab had not complied with significant compliance terms and conditions of the awards referred to above. This report is intended solely for the use of management as well as federal and state audit agencies, and should not be used for any other purpose. E./ J. Claus Certified Public Accountant Moab, Utah December 30, 1987 29 E. J. Claus CERTIFIED PUBLIC ACCOUNTANT P,O, BOX 636, 94 GRAND AVENUE, MOAB, UTAH 84532 City Council Members City of Moab Moab, Utah 84532 801-259.7221 I have examined the general purpose financial statements of the City of Moab, State of Utah for the fiscal year ended June 30, 1987, and have issued my report thereon. My examination of such general purpose financial statements was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Govern- mental Organizations, Programs, Activities, and Functions issued by the U. S. General Accounting Office, and accordingly, included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. My examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying schedule of Federal Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in my opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. Z‘- E J. Claus Certified Public Accountant Moab, Utah December 30, 1987 t CITY OF MOAB Moab, Utah DEPARTMENT OF THE TREASURY State and Local Governmental Fiscal Assistance SCHEDULE OF FEDERAL ASSISTANCE For the Year Ended June 30, 1987 CDFA NUMBER 21.300 EXPENDITURES $ 113,808 31 f