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FY1994 Audit Report CityCITY OF BLAIR, NEBRASKA JULY 31, 1994 CITY OF BLAIR, NEBRASKA TABLE OF CONTENTS Page INDEPENDENT AUDITORS' OPINION 1-2. COMBINED STATEMENTS: Combined Balance Sheet - All Fund Types and Account Groups 3-4 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - All Governmental Fund Types 5 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - Budget (Cash Basis) and Actual - All Proprietary Fund Types and Similar Trust Funds 6 General Fixed Assets Account Group: Statement of General Fixed Assets 7 Statement of Changes in General Fixed Assets 8 General Long -Term Debt Account Group: Statement of General Obligation Bonds Principal and Interest Requirements by Year of Maturity 9 Statement of Changes in General Long -Term Debt 10 Combined Statement of Cash Flow - All Proprietary Fund Types and Similar Trust Funds 11 Comparative Combined Balance Sheets - General and Special Revenue Funds 12 Comparative Combined Balance Sheets - Debt Service and Capital Improvement Funds 13 Comparative Combined Balance Sheets - Enterprise and General Insurance Funds 14 Comparative Combined Balance Sheets - General Fixed Assets and General Long -Term Debt 15 Comparative Combined Statement of Revenues, Expenditures And Changes in Fund Balances - General and Special Revenue Funds 16 Comparative Combined Statement of Revenues, Expenditures And Changes in Fund Balances - Debt Services and Capital Improvements Funds 17 Comparative Combined Statement of Revenues, Expenditures And Changes in Retained EArnings/Fund Balances - Enterprise and Insurance Funds 18 NOTES TO FINANCIAL STATEMENTS 19-25 STATEMENTS OF INDIVIDUAL FUNDS: SPECIAL REVENUE FUNDS: Combining Balance Sheet 26 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 27 Individual Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Street Fund 28 Individual Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - M.I.R.F Fund 29 CITY OF BLAIR, NEBRASKA TABLE OF CONTENTS Paste Individual Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Development Fund 30 ENTERPRISE FUNDS: Combining Balance Sheet 31 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings 32 Combining Statement of Cash Flow 33 Individual Statement of Revenues and Expenses - Budget (Cash Basis) and Actual - Water 34-35 Individual Statement of Revenues and Expenses Budget (Cash Basis) and Actual - Sewer 36 SUPPORTING SCHEDULES: Schedule of General Fund Revenues - Budget (Cash Basis) and Actual 37 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Administration Department 38 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual.- Contingency Allowance 39 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Police Department 40 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Cemetery 41 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Fire Department 42 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Park Department 43 Schedule of General Fund.Expenditures - Budget (Cash Basis) and Actual - Library 44 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Supervised Recreation 45 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Swimming Pool 46 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Landfill 47 Schedule of General Fund Expenditures - Budget.(Cash Basis) and Actual - Animal Control 48 Report on Schedule of Federal Financial Assistance 49 Schedule of Federal Financia]. Assistance 50 Compliance Report - General Purpose 51 Internal Control Report - General Purpose 52-54 Compliance Report - Specific Requirements 55 Compliance Report - General Requirements 56 Internal Control Report - Federal Financial Assistance 5759 .[ vP"4 tf I fi CLRF IFILD PUBLIC ACC0UNTA NT 1904 50UTI-[ ,51'REE,I, 10X, 436 BLAIR, NE[3RA-[tiA 68008 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: November 22, 1994 RF; SIDE;NCL: (40?.) 46 3-5253 OFFICL: (11 02) 1186.4080 "Independent Auditor's Report" I have audited the general purpose financial statements of the City of Blair, Nebraska, and the combining, individual fund, and account group financial statements of the City as of and for the year ended July :31, 1993, and 1994, as listed in the table of contents. These financial statements are the responsibility of the entity. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards and GOVERNMENT AUDITING STANDARDS issued by the comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits and State of Local Governments." Those standards require that I 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. I believe that my audit provides a reasonable basis for my opinion. As described more fully in Note 1, the budgetary comparisons included in the combined statements of revenues and expenditures are on the basis of cash receipts and expenditures which is different from the accrual basis on which the actual amounts are reported. The budgetary information included for the year ended July 31, 1994, has not been compiled or audited by me and, accordingly, I do not express an opinion or any other form of assurance on it. Management has elected to omit the summaries of significant assumptions and accounting policies required under established guidelines for presentation of prospective financial statements. If the omitted summaries were included in the budgeted information, they mlg4t influence the user's conclusions about the city's budgeted information. Accordingly, -this budgeted information is not- designed for those who are not informed about such matters. Mayor and Members of the City Council November 22, 1994 Page 2 In my opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Blair, Nebraska, at July 31, 1993, and 1994, and the results of its operations and the changes in cash flow for its propriety fund types for the years then ended, in conformity with generally accepted accounting principles. Also, in my opinion, the combining, individual fund, and account group financial statements referred to above present fairly, in all material respects, the financial position of each of the individual funds and account groups of the City of Blair, Nebraska, at July 31, 1993, and 1994, and the results of operations of such funds and the changes in cash flow of, the individual proprietary funds for the years then ended, in conformity with generally accepted accounting principles. My examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining, individual fund, and individual account group financial statements. The accompanying financial information listed as supporting schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the City of Blair, Nebraska. Such information has been subjected to the auditing procedures applied in the examination of the general purpose combining, individual fund, and individual account group financial statements and, in my opinion, is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account groups, taken as a whole. Edward Schroeder Certified Public Accountant CITY OF HLAIR NEBRASKA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JULY 31 1994 ASSETS Inventory - Prepaid expenses - Restricted assets - cash and investments - at cost - Property - net of accumulated depreciation, where applicable - Amount available in Debt Service for general long-term debt retirement - Amount to be provided for retirement of general long-term debt - Contract receivable - OPPD - TOTAL ASSETS $444,458 567,652 Proprietary Fund Types Capital Governmental Fund Types Enterprise Insurance 16,007 $ 202,800 $ - Special Debt 131,948 General Revenue Service Cash $252,555 $ - $ 88,465 Receivables: 5,006 - - 445,595 28,715 Billed user fees 3,224 - - Special assessments - - 387,244 Accrued interest 117 1,277 - Other - 63,060 - Investments -at cost (unrestricted) 152,500 - 150,000 Due from County Treasurer 36,262 - 1,461 Inventory - Prepaid expenses - Restricted assets - cash and investments - at cost - Property - net of accumulated depreciation, where applicable - Amount available in Debt Service for general long-term debt retirement - Amount to be provided for retirement of general long-term debt - Contract receivable - OPPD - TOTAL ASSETS $444,458 567,652 Proprietary Fund Types Capital General Improvement Enterprise Insurance 16,007 $ 202,800 $ - - 197,653 - 131,948 16,429 - - 181 - - 318,349 - - 27,110 - - 5,006 - - 445,595 28,715 - 6,849,763 - - - 4,398,270 $ 631,989 $627,170 $4,546,225 See Notes to Financial Statements. -3- Account Groups General General Fixed Long-term Assets Debt 4,549,241 - 216,966 234,267 $ 8,062,886 $ 28,715 $4,549,241 $451,233 CITY OF BLAIR, NEBRASKA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JULY 31 1994 LIABILITIES Accounts payable Accrued interest Accrued expenses Deposits payable Registered warrants Bonds payable Revenue bonds payable Lease payable Total liabilities Governmental Fund Types Special Debt General Revenue Service $107,388 $105,937 $ - - - 5,657 9,200 - - - - 404,547 - 600,000 - FUND BALANCES Contributed capital - - - Investment in general fixed assets - - - Retained earnings - appropriated - - - Retained earnings - unappropriated Fund balance - reserved - (118,948) - Fund balance - unreserved 327,870 - 216,966 Total fund balances 327,870 (118,948) 216,966 TOTAL LIABILITIES AND FUND BALANCES $444,458 $631,989 $627,170 See Notes to Financial Statements. -4- Proprietary Fund Types Account Groups General General Capital General Fixed Long-term Improvement Enterprise Insurance Assets Debt $ - $ 60,496 $ 347 $ - $ - - 28,904 - - - - 4,497 - - - - 2,270 - - - - 474,405 - - - - - - - 442,953 - 2,245,000 - - - - - - - 8,280 - 2,815,572 347 - 451,233 - 4,320,934 _ _ _ - - - 4,549,241 - - 445,595 - - - 480,785 - - 28,368 - - 4,546,225 - - - - 4,546,225; 5,247,314 28,368 4,549,241 - $4,546,225 $ 8,062,886 $ 28,715 $4,549,241 $451,233 Special Revenue Fund Capital Improvement Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $282,210 $348,312 $ 66,102 $ - $ - $ - 353,632 389,280 35,588 5,900 7,457 1,557 11000 402,124 401,124 150,000 - (150,000) - - - 791,802 745,049 (46,753) 402,124 401,124 1,000 - - - 72,200 - 72,200 8,000 50,134 (42,134) - - - 750,000 598,409 151,591 - - - 677,058 528,224 148,834 - - - 1,435,088 258,291)72,200 - 72,200 1,176,767 (643,256) (431,718) 211,538 (71,200) 402,124 473,324 152,000 153,133 1,133 7,000 7,000 - (20,000) (20,000) - - (541,815) (541,815) (511,256) (298,585) 212,671 (64,200) (132,691) $(68,491) 179,637 179,637 4,6784916 _4,678,916 $ (331,619) $ (118,948) $4,614,716 $4,546,225 CITY OF BLAIR NEBRASKA COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS/FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS FOR THE YEAR ENDED JULY 31 1994 Enterprise Funds Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees Sale of merchandise Rental Insurance contributions Other Total EXPENSES: Personal services Operating expenses Materials and supplies Rental expense Depreciation Payment of insurance benefits Total OPERATING INCOME (LOSS) OTHER REVENUE (EXPENSE): Interest income Interest expense Bond refunding costs Operating transfers - in Operating transfers - out NET INCOME (LOSS) RETAINED EARNINGS/FUND BALANCE - July 31, 1993 RETAINED EARNINGS/FUND BALANCE - July 31, 1994 $ 935,000 11,500 12,000 10.500 969,000 491,707 217,000 98,596 1,250 160,447 43,800 (133,502) (2,000) 345,353 (140,000) 274,098 831,331 $1,105,429 See Notes to Financial Statements. -6- Insurance Fund Variance Favorable Budget Actual (Unfavorable) $ 959,974 $ 24,974 $ - $ - $ - 20,777 9,277 - - - 12,000 - 258,052 259,788 1,736 39,937 29,437 - - - 1,032,688 63,688 258,052 259,788 1,736 456,585 235,491 108,250 1,506 287,389 1,089,221 (56,533) 44,544 (133,669) (740) 365,353 (123,906) 95,049 831,331 35,122 (18,491) (9,654) (256) (287,389) (280,668) (216,980) 744 (167) 1,260 20,000 16,094 $ (179,049) 255,862 255,862 2,190 251,322 251,322 8,466 4,540 4,540 6,276 519 519 2,190 8,985 $ 6,795 19,383 19,383 $ 21.573 $ 28.368 CITY OF.BLAIR, NEBRASKA STATEMENT OF GENERAL FIXED ASSETS JULY 31, 1994 See Notes to Financial Statements. -7- Land Buildings Vehicles Equipment Total GENERAL FUND: Administration $ 50,000 $ 835,830 $ 13,730 $ 142,207 $1,041,767 Police - - 79,455 65,062 144,517 Cemetery 115,000 18,084 14,553 19,565 167,202 Fire - - 535,963 53,031 588,994 Park 97,952 358,873 14,035 228,662 699,522 Library 22,500 116,600 - 30,697 169,797 Supervised recreation - 274 - 27,375 27,649 Swimming pool 100,000 237,581 - 165,461 503,042 Landfill 15,000 6,700 - 82,007 103,707 Animal control - 51686 13,450 2,566 21,702 SPECIAL REVENUE FUNDS - Street 10,000 263,668 215,797 388,473 877,938 CAPITALIZED LEASE - Library - 203,404 - 2034404 TOTALS $410,452 $2,046,700 $8860983 $1,205,106 $4,549,241 See Notes to Financial Statements. -7- CITY OF BLAIR, NEBRASKA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED JULY 31, 1994_ GENERAL FUND: Administration Police Cemetery Fire Park Library Supervised recreation Swimming pool Landfill Animal control SPECIAL REVENUE FUNDS - Street CAPITALIZED LEASE - Library TOTALS Balance Balance July 31, July 31, 1993 Additions Dispositions $ 863,865 $1770902 $ - $1,041,767 123,436 21,081 - 144,517 163,494 41887 1,179 167,202 615,475 3,519 30,000 588,994 613,962 94,070 8,510 699,522 1670396 21401 - 169,797 27,649 - - 27,649 503,042 - - 503,042 103,707 - - 103,707 21,702 - - 21,702 817,094 60,844 - 877,938 203,404 -_�___ _- 203,404 $4,224,226 $364,704 $,39,689 $4,549,241 See Notes to Financial Statements, -8- CITY OF BLAIR, NEBRASKA STATEMENT OF GENERAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS BY YEAR OF MATURITY JULY 31, 1994„ Year Ending Principal Interest July 31, Requirements Requirements Total 1995 $ 88,682 $ 19,659 $108,341 1996 70,672 16,189 86,861 1997 69,920 12,945 820865 1998 46,959 10,032 56,991 1999 45,000 71748 52,748 2000 45,000 51410 50,410 2001-2004 85,000 ._.10.040 _ 95040 $451,233 $ 82..023 $533,256 See Notes to Financial Statements. -9- CITY OF BLAIR,., NEBRPISKA STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT _ FOR THE YEAR ENDED JULY 31,,1994 Balance Balance Interest July 31, July 31, Dated Description Rate 1993 Additions Deductions 1994- 6/15/88 Various purpose 5.25-6.40% $ 30,000 $ - $(15,000) $ 15,000 1/01/91 IBM financing lease 8.06% 13,853. - (5,571) 8,280 10/15/91 Fire Department bonds 5.00-6.20% 155,000 - (20,000) 135,000 2/15/94 Various purpose 3.00-4.70% - 190,000 - 190,000 3/01/94 Landfill Closure Loan 4.50% 111,000 (ti,_0.47) _102,953 TOTAL $198,851 $301,000 1_(48,618) $451,233 See Notes to Financial Statements. _10- CITY OF BLAIR, NEBRASKA COMBINED STATEMENT OF CASH FLOW ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS FOR THE YEAR ENDED JULY 31, 1994 CASH FLOW FROM FINANCING: Increase (decrease) in registered warrants 474,405 - Reduction of long-term debt (175,000) - Decrease (increase) in restricted assets (12,009) - Interest expense (133,669) - Bonding costs (740) - Increase (decrease) in accrued interest payable 166 - Cash from (used in) financing 153,153 - NET INCREASE (DECREASE) IN CASH 59,035 8,736 CASH AND CASH EQUIVALENTS - Beginning of 462,114 19,979 the period CASH AND CASH EQUIVALENTS - End of the period $ 521,149 $ 28,715 See Notes to Financial Statements. -11- General z Enterprise Insurance Funds Funds CASH FLOW FROM OPERATIONS: Net operating income (loss) $ (56,533) $ 8,985 Adjustment to reconcile net income to net cash from operations: Depreciation 287,389 - Decrease (increase) in accounts receivable -user fees (35,298) - Decrease (increase) in accounts 451 - receivable -other Decrease (increase) in inventory 2,534 (375) - -249) Decrease (increase) in prepaid expenses Increase (decrease) in accounts payable (28,318) Decrease in accrued expenses Increase (decrease) in deposits payable 492 (22,191)Net - cash provided (used) by 148,151 8,736 operations CASH FLOW FROM INVESTING: Purchase of property (525,037) - Interest income 44,544 241,447 - - Transfers - net Decrease (increase) in accrued interest receivable (3,223) - Cash from (used by) investing (242,269) CASH FLOW FROM FINANCING: Increase (decrease) in registered warrants 474,405 - Reduction of long-term debt (175,000) - Decrease (increase) in restricted assets (12,009) - Interest expense (133,669) - Bonding costs (740) - Increase (decrease) in accrued interest payable 166 - Cash from (used in) financing 153,153 - NET INCREASE (DECREASE) IN CASH 59,035 8,736 CASH AND CASH EQUIVALENTS - Beginning of 462,114 19,979 the period CASH AND CASH EQUIVALENTS - End of the period $ 521,149 $ 28,715 See Notes to Financial Statements. -11- CITY OF BLAIR, NEBRASKA COMPARATIVE COMBINED BALANCE SHEETS GENERAL AND SPECIAL REVENUE FUNDS FOR THE YEARS ENDED JULY 31, 1993 AND 1994 ASSETS Cash Receivables: Billed user fees Accrued interest Other Investments - at cost (unrestricted) Due from County Treasurer Restricted assets - cash and investments - at cost TOTAL ASSETS LIABILITIES Accounts payable Accrued expenses Revenue bonds payable Total Liabilities FUND BALANCES Fund balance - reserved Fund balance - unreserved Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES SPECIAL GENERAL REVENUE FUNDS FUNDS 1993 1994 _ 1993 1994 $277,396 $252,555 3,024 3,233 117 12,000 - 202,500 152,500 39,839 36,262 $534,968 $444,458 $220,630 $107,388 - 9,200 220,630 116,588 314,338 327,870 314,338 327,870 $534,968 $444,458 394 1,277 47,215 63,060 221,391 567,652 $269,000 $631,989 $ 89,363 $150,937 600,000 89_,363 750,937 179,637 (118,948) 179,637 X118,948) $269,000 $631,989 See Notes to Financial Statements. -12- CITY OF BLAIR, NEBRASKA COMPARATIVE COMBINED BALANCE SHEETS DEBT SERVICE AND CAPITAL IMPROVEMENT FUNDS FOR THE YEARS ENDS JULY 31, 1993 AND 1994 AS ETS Cash Receivables: Special assessments Accrued interest Investments - at cost (unrestricted) Due from Countv Treasurer Contract receivable - OPPD TOTAL ASSETS LIABILITIES Accounts payable Accrued interest Registered warrants Total Liabilities DEBT CAPITAL SERVICE IMPROVEMENT FUNDS FUNDS 1993 1994 1993 1994 $114,572 $ 88,465 168,000 387,244 - 150,000 1,557 1,461 $284,129 $627,170 $ 42,283 $ 16,007 134,491 131,948 25,000 4,477,142 4,398,270 $4,678,916 $4,546,225 7,449 5,657 - - 272,521 404,547 279,970 410,2" - - FUND BALANCES Fund balance - unreserved 4,159 216,966 TOTAL LIABILITIES AND FUND BALANCES $284,129 $627,170 4,678,916 4,546, 225 $4,678,916 $4,546,225 See Notes to Financial Statements. -13- CITY OF BLAIR NEBRASKA COMPARATIVE COMBINED BALANCE SHEETS GENERAL FIXED ASSETS AND GENERAL LONG-TERM DEBT FOR THE YEARS ENDED JULY 31, 1993 AND 1994 ASSETS Property - net of accumulated depreciation, where applicable Amount available in Debt Service for general long-term debt retirement Amount to be provided for retirement of general long-term debt TOTAL ASSETS LIABILITIES Bonds payable Lease payable Total Liabilities FUND BALANCES Investment in general fixed assets TOTAL LIABILITIES AND FUND BALANCES GENERAL FIXED ASSETS GENERAL LONG-TERM DEBT 1993 1994 1993 1994 $4,224,226 $4,549,241 $ - $ - - 4,159 216,966 194,692 234,267 X224,226 $4,549,241 $198,851 $451,233 $ - $185,000 $442,953 13,851 8,280 - 198,851 451,233 4,224,226 4,549,241 $4,224,226 $4,549,241 1198,851 $451,233 See Notes to Financial Statements. -15- CITY OF BLAIR, NEBRASKA COMPARATIVE COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GENERAL AND SPECIAL REVENUE FUNDS FOR THE YEARS ENDED JULY 31, 1993 AND 1994 GENERAL FUNDS 1993 1994 REVENUES Taxes and special assessments $ 986,932 $1,013,708 Street revenues - - Licenses and permits 49,562 65,729 Charges for services 212,098 154,978 Interest income 6,841 13,294 Bond proceeds - 111,000 Other revenues 91,376 88,990 Total revenues 1,346,809 1,447,699 EXPENDITURES Administration Contingency allowance Police Department Cemetery Fire Department Parks Department Library Supervised recreation Swimming pool Airport Landfill Landfill closing accrual Animal control M.I.R.F. fund Development Street Total expenditures 259,724 438,871 - 35,000 531,316 532,848 80,172 79,981 61,240 64,316 104,588 165,412 147,209 144,373 26,968 33,571 37,537 39,653 25,472 - 95,272 116,755 105,600 - 40,497 39,518 1,515,595 1,690,298 REVENUES OVER (UNDER) EXPENDITURES (168,786) (242,599) OTHER FINANCING SOURCES (USES): SPECIAL REVENUE FUNDS 1993 1994 $120,578 $ 348,312 378,128 389,280 7,541 7,457 506,247 745,049 2,823 - 50,134 150,784 598,409 534,683 528,224 688,290 1,176,767 (182,043) (431,718) Operating transfers - in 416,013 327,222 235,404 153,133 Operating transfers - out (36,978) (71,091) (20,000) REVENUES AND OTHER FINANCIAL SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 210,249 13,532 FUND BALANCE - BEGINNING 104,089 314,338 FUND BALANCE - ENDING $ 314,338 $ 327,870 See Notes to Financial Statements -16- 53,361 (298,585) 126,276 179,,637 $179,637 $(118,948) CITY OF BLAIR, NEBRASKA. COMPARATIVE COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICES AND CAPITAL IMPROVEMENTS FUNDS FOR THE YEARS ENDED JULY 31, 1993 AND 1994 DEBT CAPITAL SERVICE IMPROVEMENT FUNDS FUNDS 1993 1994 _ 1993 1994 REVENUES Taxes and special assessments $274,351 Interest income 866 Bond proceeds - Other revenues - Total revenues 275,217 EXPENDITURES Administration 2,212 Capital outlay 199,506 Debt service: District construction 274,699 Redemption of bonds 65,144 Bond interest 27,619 Total expenditures 569,180 REVENUES OVER (UNDER) EXPENDITURES (293,963) OTHER FINANCING SOURCES (USES): Operating transfers - in 52,307 Operating transfers - out - REVENUES AND OTHER FINANCIAL SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (241,656) FUND BALANCE - BEGINNING 245,815 FUND BALANCE -- ENDING $ 4,159 $519,464 $ 9,476 190,000 181,423 900,363 $ - 409,103 402,124 409,103 402,124 7,968 - - 20,725 510,015 48,618 25,057 591,658 308,705 15,511 (111,408) 20,725 388,378 - 2,500 71000 (487,615) _ 541,815 212,808 (96,737) (132,691) 4,158 4,775,653 $4,678,91.6 $216,966 $4,678,916 $4,546,22.5 See Notes to Financial Statements -17- CITY OF BLAIR, NEBRASKA COMPARATIVE COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES ENTERPRISE AND INSURANCE FUNDS FOR THE YEARS ENDED JULY 31, 1993 AND 1994 ENTERPRISE FUNDS 1993 1994 INSURANCE FUNDS 1993 1994 OPERATING REVENUES: User fees $ 801,288 $ 959,974 $ - $ - Sale of merchandise 16,875 20,777 - - Rental 12,000 12,000 - - Insurance contributions - - 246,444 259,788 Other 13,185 39,937 - -_ Total 843,348 1,032,688 246,444 259,788 EXPENSES: Personal services 479,873 4561585 - - Operating expenses 227,258 235,491 - - Materials and supplies 112,430 108,250 - - Construction contracts 87,150 - - - Rental expense 1,396 11506 - - Depreciation 276,655 287,389 - - Payments of insurance benefits - - 230,178 251,322 Total 1,184,762 1,089,221 230_,178 251,322 OPERATING INCOME (LOSS) (341,414) (56,533) 16,266 8,466 OTHER REVENUE (EXPENSE): Interest Income 58,661 44,544 - 519 Interest expense (139,305) (133,669) - - Bonding costs (188,530) (740) - - Operating transfers - in 68,911 365,353 - - Operating transfers - out (250,544) (123,906) NET INCOME (LOSS) (792,221) 95,049 16,266 8,985 RETAINED EARNINGS/FUND BALANCE July 31, 1993 1`623,552 831,331 3,117 19,383 RETAINED EARNINGS/FUND BALANCE July 31, 1994 $ 8,31,331 $ 926,380 $ 19 383 28,368 See Notes to Financial Statements -18- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Blair accounts for its financial position and results of operations in accordance with generally accepted accounting principles applicable to governmental units. Accordingly, the City uses several funds and account groups which are described below. A. Fund Types and Account Groups: A fund or account group is an accounting entity with a self -balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The City maintains the following fund types and account groups: Governmental fund types, that include •the General Fund, Special Revenue Funds, and the Debt Service Fund, are used to record the general operations of the City; Proprietary fund types, that are used to account for activities conducted on a fee for service basis in a manner similar to commercial enterprises, provide services to the public (enterprise funds); Fiduciary fund types (trust and insurance funds), that are used to account for assets held by the City as an agent for private individuals or organizations or in trust; General fixed assets account groups, that are equipment and long-term General long-term bonded Service Fund. B. Reporting Entity: and general long-term, obligation used to account for property and obligations of governmental funds. debt was repaid through the Debt All significant activities and organizations on which the City exercises oversight responsibility have been included in the City's general purpose financial statements, for the years ended July 31, 1993 and 1994. The following criteria regarding manifestation of oversight were considered by the City in its evaluation of the City organizations and activities: Financial interdependency -The City is responsible for its debts and is entitled to surpluses. No separate agency receives a financial benefit nor imposes a financial burden on the City. Election of the government authority -The locally elected City Council is exclusively responsible for all public decisions and accountable for the decisions it makes. -19- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS Continued 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Designation of management -The City Council appoints the City Administrator. The City Administrator hires other members of City management. The activities under the purview of management are within the scope of the reporting entity and management is accountable to the City Council for the activities being managed. Ability to significantly influence operations -The City Council has the statutory authority under the provisions of the Revised Statutes to significantly influence operations. This authority includes, but is not limited to, adoption of the budget, control over all assets, including facilities and properties, short term borrowing, signing contracts, and developing the programs to be provided. Accountability of fiscal matters -The responsibility and accountability over all funds is vested in the City management. C. Basis of Accounting: All governmental fund types are accounted for using the modified accrual basis of accounting. Their revenues are recognized when earned and expenditures are recognized when incurred except in the case of property tax revenues recognized when received, and in the recording of interest on general obligation bonds only when the coupons mature. The proprietary fund types and similar trust funds are accounted for using the accrual basis whereby revenues are recognized when earned and expenses are recognized when incurred. The City does not apply encumbrance accounting on any of its funds. D. Debt Service Fund: The Debt Service Fund is used to account for the payment of principal and interest on general long-term debt. The primary sources of revenue are property taxes and special assessments. E. Inver= Inventory is stated at the lower of cost (first -in, first -out) or market value. The consumption method is used in regard to inventory expenditure recognition. -20- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS, Continued 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Property: All fixed assets are recorded at cost or estimated cost if actual cost is not available. The proprietary and fiduciary fund assets are presented on the respective balance sheets except for the cost of any underground utility lines which are not included in the assets. Depreciation of the assets is computed on a straight-line method over the estimated useful lives of the assets. The range of estimated lives is from five to fifty years. Assets in other than proprietary and fiduciary funds are recorded as expenditures at the time of purchase with the accumulated cost being presented in the general fixed asset group of accounts. Certain improvements such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems are not capitalized. No depreciation is provided for assets in the general fixed asset group of accounts. G. Budgetary Basis: The City's legally adopted budget is based on requirements of the State of Nebraska. The budget is prepared and adopted using the cash basis of accounting whereby revenues are budgeted when expected to be received rather than earned and expenditures are budgeted when expected to be disbursed rather than incurred. The nature and amount of the differences are not material to the financial statements. H. Compensated Absences: The City of Blair does not record accrued compensated absences as they are unmeasurable as of July 31, 1993, and 1994. I. Investments• The Investments are bank Certificates of Deposit or U.S. Government Securities with no unusual restrictions other than penalty for early withdrawal. All unrestricted investments are short-term. Investments are stated at cost, which approximates market value. All investments are entirely insured or collateralized with U.S. Government Securities and are considered cash equivalents. -21- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS, Continued 1. SUMMARY OF SIGNIGICANT ACCOUNTING POLICIES (Continued) The City's investments are categorized to give an indication of the level of risk assumed by the City at year end. The City's investments are all category 1, which means that the investments are insured or registered. The securities are held by the City or its agent in the City's name. 2. RESTRICTED ASSETS Restricted assets consist of cash, certificates of deposit, and government securities. The assets are restricted as follows: Street funds M.I.R.F funds Development funds Bond and Interest sinking fund Reserve for insurance claims Total restricted assets Street funds M.I.R.F funds Development funds Bond and Interest sinking fund Utility deposit fund Reserve for insurance claims Total restricted assets 1994 Special Revenue Fund $ 76,156 4,124 487,372 $567,652 1993 Special Revenue Fund $100,000 77,329 44,062 $221,391 -22- Enterprise Funds Insurance Funds 445,595 - $ 445,595 Enterprise Funds $ 409,125 24,461 $433,586 28,715 1_2R, 715 Insurance Funds 19,979 $ 19,979 CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS, Continued 3. LONG-TERM DEBT Water Bonds: Rate Total November 1, 1992 3.2-6.3% $2,245,000 Annual Principal Requirements For Water Bonds Year Ending July 31, 1995 180,000 1996 95,000 1997 90,000 1998 80,000 1999-2014 1,800,000 TOTAL $2,245,000 The City of Blair secured the November 1, 1992 water bonds by pledging $20,000 of annual M.I.R.F. receipts to the payment of the bonds through July 31, 1999. The issuance of the November 1, 1992 bonds provided funds for the defeasance of an June 15, 1988 issue callable May 1, 1994. The amount defessed was $2,310,000. The economic gain of the refinance was $430,648. The funds necessary for defeasement have been placed in non -accessible trust accounts. There was no interest capitalized during 1993 or 1994. Sales Tax Revenue Bonds: Rate November 15, 1993 2.7-3.50 Year Ending July 31 1995 1996 1997 TOTAL Total $600,000 Annual Principal $195,000 200,000 205,000 $600,000 The payment of the Sales Tax Revenue Bonds is collateralized by the pledging of future sales tax receipts. -23- CITY OF BLAIR, NEBRASKA r NOTES TO FINANCIAL STATEMENTS, continued 4. PENSION PLANS The city has two pension plans covering substantially all of its employees. Employees other than policemen are covered by a defined contribution plan. All contributions up to 4% of gross wage in employee contributions and 4% of gross wage in contributions from the City are invested with an investment manager. The employees must have accumulated one year of r service to participate in the plan. The plan is a single employer plan with the City maintaining fiduciary responsibility for it. Contributions for the fiscal year ended July 31, 1993 and 1994, were $56,916 and $62,468 respectively. Contributions are expected to remain relatively level from year to year. The 1994 covered payroll and total payroll were $780,850 and $820,132 respectfully. The policemen are covered tinder a defined benefit plan established by the statutes of the State of Nebraska. Policemen terminating before retirement age receive payment for their contributions to date of termination plus interest accrued and the vested portion of the City's contributions based on the statutes of the State of Nebraska. The City has fiduciary responsibility for -the plan and it is a single employer plan only. Contributions of $35,186 for 1993 and $36,868 for 1994, were 12% of gross wages which compiles with statutory requirements. The City contributed 6 percent of gross wages and the policemen contributed 6 percent. The City has no material pension benefit obligations as of January 1, 1990, per Actuarial Report dated November 7, 1990. The City does expect contributions to remain relatively level from year to year. The contributions are not actuarially determined. All qualifying police payroll was covered in 1993 and 1994. During the year ended July 31, 1984, the City transferred police pension funds to an independent trustee for investment. The trustee will maintain the fund according to state law. This change in pension fund maintenance eliminated the need for the police pension fund. Contributions to the trustee were reported as an expenditure during the year ended July 31, 1993 and 1994. 5. OTHER ASSET - ELECTRIC PLANT CONTRACT In April 1984, the City of Blair contracted to sell its electrical transmission and distribution generating facilities to the Omaha Public Power District. The terms of the agreement were as follows: Omaha Public Power District agreed to buy the City of Blair facilities for the sum of $5,950,000. The terms of payment shall be $1,000,000 payable at the date of the contract and the balance of $4,950,000 amortized over thirty years at nine percent interest per annum, with annual payments of $481,815 commencing in April 1985. This contract is unsecured. -24- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS, Continued 5. OTHER ASSET - ELECTRIC PLANT CONTRACT (Continued) This contract also provided for the Omaha Public Power District to supply electrical service directly to the City and its residents. The transfer of electrical services was completed on July 31, 1984. 6. LANDFILL CLOSURE ACCRUAL The City of Blair has approved a plan to close its landfill operations. Anticipated closing and monitoring costs accrued over the remaining life of the landfill required an accrued expense for the General fund as of July 31, 1993, in the amount of $145,600. The Landfill closed October 31, 1993. 7. ACCOUNTS RECEIVABLE - SPECIAL ASSESSMEN'T'S The City of Blair's special assessments outstanding as of July 31, 1993 and 1994, are composed of the following: 1993 1994 Special assessment principle $168,000 $228,536 Special assessments available not levied - 158,708 Total Special Assessments Receivable $168,000 $387,244 8. INSURANCE FUND The City of Blair self -insures certain dental and eye benefits for its employees. Effective July 1, 1991, the City no longer has self --insured medical benefits. Funds were contributed from various funds into the insurance fund for proper allocation. The contributions into the fund for July 31, 1993 and 1994, were $246,444 and $259,788 respectively. Dental and vision benefits are limited and do not create significant risk for the City. 9. CONCENTRATION OF CREDIT RISK All of the receivables of the City of Blair proprietary funds are from the local Blair area therefore creating a concentration of credit risk. If the Blair area economy was depressed this could have an adverse effect on the collection of the outstanding accounts receivable. 10. DEFICIT FUND BALANCE The City of Blair special revenue funds had a deficit fund balance of $118,948 as of July 31, 1994. 11. PROPERTY TAY, CALENDAR The City of Blair levy date is December 31 with tax due dates by halves on May and September of the following year. -25- CITY OF BLAIR, NEBRASKA COMBINING BALANCE SHEET - SPECIAL REVENUE FUNDS JULY 31, 1994 ASSETS -26- Street M.I.R.F. Development Fund Fund Fund Total CASH SAVINGS $ 76,156 $ 4,124 $177,372 $257,652 INVESTMENTS - - 310,000 310,000 SALES TAX RECEIVABLE - - 63,060 63,060 ACCRUED INTEREST RECEIVABLE 1,277 1,277 TOTAL $ 76,156 $ 4,124 $551,709 $631,989 LIABILITIES AND FUND BALANCES USE TAX REFUND $ - $ - $110,983 $110,983 ACCOUNTS PAYABLE 22,427 - 17,527 39,954 REVENUE BONDS PAYABLE - - 600,000 600,000 FUND BALANCE 53,729 4,124 (176,801) (118,948) TOTAL $ 76,156 $ 4,124 551,709 $631,989 -26- CITY OF BLAIR, NEBRASKA COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JULY 31, 1994 Rental 510 Capital outlay: Street M.I.R.F. Development Building Fund Fund Fund Total REVENUES: Street improvements 951099 Street revenues $389,280 $ - $ - $ 389,280 M.I.R.F. revenues - 23,434 - 23,434 Interest on investments 740 1,264 5,453 7,457 Sales and use tax - _ - 324,878 324,878 Total revenues 390,020 24,698 330,331 745,049 EXPENDITURES: 14,929 FUND BALANDE - July 31, Salaries 169,443 - - 169,443 FICA 12,659 - - 12,659 Retirement 7,981 - - 7,981 Employee insurance 33,742 - - 33,742 Legal - - - - Engineering 2,030 - - 2,030 Auditing 1,713 - - 1,713 Office expenses 798 - - 798 Dues 319 - - 319 Utilities 6,931 - - 6,931 Telephone 1,140 - - 1,140 Travel - - - - Training - - - - Insurance 11,839 - - 11,839 Maintenance 57,442 - - 57,442. Street lighting 88,208 - - 88,208 Contingency reserve 21385 - - 2,385 Car expense 659 - - 659 Collection fees - - - - Development expenses - - 598,409 598,409 Sand, gravel and rock 11,991 - - 11,991 Gas, diesel and oil 8,952 - - 8,952 Materials and supplies 31674 - - 3,674 Rental 510 Capital outlay: Building 10,709 Motorized equipment - Street improvements 951099 Total expenditures 528,224 REVENUES OVER (UNDER) EXPENDITURES (138,204) OTHER FINANCING SOURCES (USES): Operating transfers - in 153,133 Operating transfers - out - REVENUES OVER (UNDER) EXPENDITURES 14,929 FUND BALANDE - July 31, 1993 38,800 FUND BALANCE - July 31, 1994 $ 53,729 -27- 50,134 _ 50,134 598,409 (25,436) (268,078) _2( 0,000) 510 60,843 95,099 1,176,767 (431,718) 153,133 (20,000) (45,436) (268,078) (298,585) 491560 91,277 179,637 $ 4,124 (176,801) $ (118,948) CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL SPECIAL REVENUE FUNDS - STREET FUND FOR THE YEAR ENDED JULY 31, 1994 s Variance Favorable Budget Actual (Unfavorable) REVENUES: Highway allocation $ 330,760 $ 364,727 $ 33,967 County road tax 100 - (100) Motor vehicle pro -rata 3,000 - (3,000) Incentive payment 3,000 3,000 - State maintenance agreement 14,532 14,533 1 Bond proceeds 150,000 - (150,000) Sale of rock 1,000 11606 606 Equipment rental 1,300 900 (400) Interest on investments 5,200 740 (4,460) Reimbursed expenses - 4,514 4,514 Total Revenues 508,892 390,020 1118,872) EXPENDITURES: Salaries 175,420 169,443 51977 FICA 13,790 12,659 1,131 Retirement 7,600 7,981 (381) Employee insurance 31,998 33,742 (1,744) Legal 300 - 300 Engineering 2,500 2,030 470 Auditing 1,800 1,713 87 Office expense 200 798 (598) Dues 300 319 (19) Utilities 5,000 6,931 (1,931) Telephone 800 1,140 (340) Travel 200 - 200 Training 200 - 200 Insurance 10,700 11,839 (1,139) Maintenance 18,900 57,442 (38,542) Street lighting 80,000 88,208 (8,208) Contingency reserve 3,000 2,385 615 Car expense 600 659 (59) County Treasurer fees - - - Sand, gravel, and rock 13,000 11,991 11009 Gas, diesel, and oil 10,500 81952 1,548 Materials and supplies 3,000 3,674 (674) Rental 3,000 510 2,490 Capital outlay: Buildings 7,000 10,709 (3,709) Equipment 10,000 - 10,000 Street improvements 277,250 _ 95,099 182,151 Total expenditures 677,058 528,_224_ 148.834 REVENUES OVER (UNDER) EXPENDITURES (168,166) (138,204) 29,962 OTHER FINANCING SOURCES (USES): Operating transfers -in 152,000 153,133 1,133 Operating transfers -out - - REVENUES OVER (UNDER) EXPENDITURES (16,166) 14,929 $ 31,095 FUND BALANCE - JULY 31, 1993 38:800 38,800 FUND BALANCE - JULY 31, 1994 $ 22,634 $ 53,729 -28- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL SPECIAL REVENUE FUNDS - M.I.R.F. FUND FOR THE YEAR ENDED JULY 31,_1994 REVENUES; M.I.R.F. revenues Interest income Total revenue EXPENDITURES: Street building REVENUES OVER (UNDER) EXPENDITURES BEFORE TRANSFERS TRANSFER OUT REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - July 31, 1993 FUND BALANCE - July 31, 1994 Variance Favorable Budget Actual (Unfavorable) $ 22,210 200 22,410 $ 23,434 1., 264 24,698 $ 1,224 1,064 2,288 __8,OQO) _ (50,134) _ L42r_134) -29- 14,43.0 (25,436) (20 , 000 ) _ .R =_j 000 ) (51590) (45,436) 49,560 49,560 43970 $ 4,124 (39,846) $ (39,846) CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL SPECIAL REVENUE FUNDS - DEVELOPMENT FUND FOR THE YEAR ENDED JULY 31, 1994 REVENUES: Sales tax Use tax Interest income Total revenue EXPENDITURES: State collection fees Refunds Land Bank interest paid Water study Sewer extension Housing study Gateway fees Gateway wages - 1992 Gateway wages - 1993 Meals Postage and maps Professional fees - pre-closing Bonding expense Total expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - July 31, 1993 FUND BALANCE - July 31, 1994 Variance Favorable Budget Actual (Unfavorable) $ 260,000 $ 313,209 $ 53,209 - 11,669 11,669 500 _ 5,453 4,953 �. 260s,500 330,331 69,831 9,726 880 482,689 11,892 27,725 20,047 7,000 15,000 3,169 2,667 118 92 9,725 7,679 750,000 598,409 151,591 (489,500) (268,078) $ 221,422 91,277 91,277 $(3984223) $(7.76,801) -30- (This page left blank intentionally) LIABILITIES AND FUND BALANCE Water Sewer Total CURRENT LIABILITIES: Current portion of long-term debt $ 180,000 $ - $ 180,000 Registered warrants 474,405 - 474,405 -Accounts payable 38,663 21,833 60,496 Accrued interest 28,904 - 28,904 Accrued expenses 4,497 - 4,497 Total current liabilities 726,469 214$33 _ 748,302 DEPOSITS PAYABLE 2,270 _2,270 LONG-TERM DEBT: Revenue bonds payable- unmatured 2,445,000 - 2,445,000 Less current portion above (180,000) -(180,000) Long-term debt -net 2,065,000 -- 2,065,000 Total liabilities 2,793,739 21,833 _2,815,572 FUND BALANCE: Contributed capital. 1,550,100 2,770,834 4,320,934 Retained earnings: Reserved 445,595 - 445,595 Unreserved 1,459,260 (978,475) _ 480,785 Total fund balance 3,454,955 1,792j359 5,247,314 TOTAL LIABILITIES AND FUND BALANCE $6,248,694 $1,814,192 $8,062,886 CITY OF BLAIR, NEBRASKA COMBINING STA'T'EMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FOR THE YEAR ENDED JULY 31, 1994 -32- Water Sewer Total OPERATING REVENUES: User fees $ 629,059 $ 330,915 $ 959,974 .Sale of merchandise 18,002 2,775 20,777 Rental 12,000 - 12,000 Other 39,937 - 39,937 Total 698,998 333,690 1,032,688 EXPENSES: Personal services 300,384 156,201 456,585 Operating expenses 157,619 77,872 235,491 Materials and supplies 86,633 21,617 108,250 Rental expense 848 658 1,506 Depreciation _ 210,517 76,877 287,389 Total _ 755,996 333,225 1,089,221 OPERATING INCOME (LOSS) (56,998) 465 (56,533) OTHER REVENUE (EXPENSE): Interest income 44,026 518 44,544 Interest expense (133,669) - (133,669) Bonding costs (740) - (740) Operating transfers -in 365,353 - 365,353 Operating •transfers -out (122,604) (1,302) (123,906) NET :INCOME: (LOSS) 95, 368 ( 319 ) 95,049 RE'T'A114ED EARNINGS (DEFICIT) July 31, 1993 1,809,487 (978,156) 831,331 RETAINED EARNINGS (DEFICIT) July 31, 1994 $1,904,855 $(978,475) $926,380 -32- CITY OF BLAIR, NEBRASKA COMBINING STATEMENT OF CASH FLOW ENTERPRISE FUNDS FOR THE YEAR ENDED JULY 31 1994 Water Sewer CASH FLOW FROM OPERATIONS: Net operating income (loss) Adjustment to reconcile net income to net cash from operations: Depreciation Decrease (increase) in accounts receivable - user fees Decrease (increase) in accounts receivable - other Decrease (increase) in inventory Decrease (increase) in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Increase (decrease) in deposits payable Net cash provided (used) by operations CASH FLOW FROM INVESTING: Purchase of property Interest income Transfers - net Decrease (increase) in accrued interest receivable Cash flow from (used in) investing CASH FLOW FROM FINANCING: Increase (decrease) in Registered warrants Reduction of long-term debt Decrease (increase) in restricted assets Interest expense Bonding costs Increase (decrease) in accrued interest payable Cash flow from (used in) financing NET INCREASE (DECREASE) IN CASH CASH AND CASH EQUIVALENTS - Beginning of -the period CASH AND CASH EQUIVALENTS - End of the period -33- Total $ (56,998) $ 465 $ (56,533) 210,512 76,877 287,389 (33,913) (1,385) (35,298) 451 - 451 2,534 - 21534 (202) (173) (375) 4,118 (32,436) (28,318) 492 - 492 _(22,191) (22,191) 104,803 434348 148,151 (515,348) (9,689) (525,037) 44,026 518 44,544 242,749 (1,302) 241,447 (3,223) - (3,223) (231,796) (10,473) (242,269) 474,405 - 474,405 (175,000) - (175,000) (12,009) - (12,009) (133,669) - (133,669) (740) - (740) 166 - 166 153,153 = 15 3 ,15 3 26,160 32,875 59,035 393,313 68,8,01 462,114 $ 419,473 $101,676 $ 521,149 CITY OF BLAIR, NEBRASKA 1 INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - WATER FOR THE YEAR ENDED JULY 31, 1994 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees $630,000 $629,059 $ (941) Sale of merchandise 10,000 18,002 8,002 Forfeited discounts 6,500 8,541 2,041 Hydrant rental 12,000 12,000 - Other 4,000 31,396 27,396 Total revenues 662,500 698,998 36,498 EXPENSES: Personal services: Salaries 252,793 230,111 22,682 FICA 19,338 17,337 2,001 Workman's compensation 6,600 6,020 580 HAL insurance 40,464 35,962 4,502 Retirement (city share) 10,199 10,898 (699) Unemployment compensation 70 _ 56 14 Total 329,464 300,384 29,080 Operating expenses: Legal fees 400 - 400 Auditing 11550 11507 43 Consultants/engineering 8,000 3,719 4,281 Employee appreciation 900 39 861 Postage 41800 4,899 (99) Printing and publications 600 695 (95) Computer programming 1,000 720 280 Schools, travel, and training 1,600 1,116 484 Dues 21750 1,294 1,456 Utilities 76,000 98,291 (22,291) Telephone 2,400 2,140 260 Vehicle insurance 900 505 395 Liability insurance 1,700 11900 (200) Buildings and contents insurance 41000 3,488 512 Employee bonds 300 - 300 Radio maintenance 600 103 497 Office equipment maintenance 1,000 631 369 Motorized equipment maintenance 2,200 2,538 (338) Building maintenance 4,500 17,163 (12,663) Major maintenance 10,000 12,304 (2,304) Contingent reserve 4,500 - 4,500 Maintenance agreements 3,500 3,402 98 Car expense 384 408 (24) Bad accounts 300 757 (457) Total 133,884 157,619 (23,735) - continued - -34- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - WATER FOR THE YEAR ENDED JULY 31, 1994 - continued - EXPENSES: Materials and supplies: Office supplies Janitorial supplies Stores and supplies Chemicals Supplies for inventory Gasoline Clothing allowance Small tools Construction contracts Other materials and supplies Total Rental expense - Office equipment Total expenses OPERATING INCOME (LOSS) BEFORE DEPRECIATION DEPRECIATION OPERATING INCOME (LOSS) OTHER REVENUES (EXPENSES): Interest income Interest expense Bonding costs Operating transfers - in Operating transfers - out NET INCOME (LOSS) -35- Variance Favorable Budget Actual (Unfavorable) $ 1,700 $ 21027 $ (327) 300 275 25 21500 1,491 1,009 32,000 54,777 (22,777) 8,000 11,123 (31123) 3,000 1,531 1,469 800 714 86 900 1,099 (199) 24,500 10,263 14,237 4,046 3,333 713 _ 77,746 86,6338( ,887) 750 848 (98) 541,844 545,484 (3,640) 120,656 153,514 32,858 - 210,512 (210,512) 120,656 (56,998) (177,654) 39,800 44,026 4,226 (133,502) (133,669) (167) (2,000) (740) 1,260 345,353 365,353 20,000 _(140,000)1( 22,604) 17,396 $ 230,307 $_ 95,368 $(134,939) CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - SEWER FOR THE YEAR ENDED JULY 31, 1994 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees $305,000 $330,915 $ 25,915 Sale of merchandise 1,500 2,775 1,275 Total revenues 306,500 333,690 27,190 EXPENSES: Personal services: Salaries 124,421 118,509 5,912 FICA 9,520 8,794 726 Workman's compensation 2,200 2,790 (590) H.A.L. insurance 19,563 19,562 1 Retirement (city share) 6,499 6,525 (26) Unemployment compensation 40 2119 Total _162 _ 243 156,201 _ 6,042 Operating expense: Legal 200 - 200 Auditing 700 685 15 Consulting/engineering 2,800 2,888 (88) Employee appreciation 400 22 378 Postage 2,000 2,381 (381) Printing and publication 300 224 76 Computer programming 600 93 507 School, travel and training 3.,000 521 479 Dues 1,800 11014 786 Utilities 44,000 49,050 (5,050) Telephone 900 871 29 Insurance 6,500 5,780 720 Maintenance 15,700 14,114 1,586 Chamber of Commerce 2,000 - 2,000 Car expense 216 229 (13) Contingent reserve 4,000 - 4,000 Total 83,116 77,872 5,244 Materials and supplies 20,850 21,617 (767) Rental expense 500 658 (158) .Total expenses 266,709 256,348 10,361 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 39,791 77,342 37,551 DEPRECIATION - ` (76,877) 76 877) OPERATING INCOME (LOSS) 39,791 465 (39,326) OTHER REVENUE (EXPENSE): Interest income 4,000 518 (3,482) Transfer - out (1,302) (1,302) NET INCOME (LOSS) $ 43,791 $ (319) $(44,110) -36- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND REVENUES BUDGET (CASH BASIS) AND ACTUAL FOR THE YEAR ENDED JULY 31, 1994 REVENUES: Taxes: Property taxes Interest on taxes Insurance tax Receipts in lieu of taxe Personal property tax re State aid Motor vehicle pro -rate Homestead relief Franchise tax Total Charges for services: Business Licenses and Pe Library Landfill collections Cemetery lots Grave openings Swimming pool fees Other fees and charges Sales of fireworks Building and land leases Total INTEREST INCOME Budget $ 710,518 1,000 36,000 s 46,000 lief 25,000 104,100 24,000 65,000 1,011,618 rmits 46,500 6,940 617,300 10,400 14,200 19,500 10,660 9,000 2,200 736,700 OTHER REVENUES: Disaster funds Grant -airport Grant --park Gifts Police lab fund County inspector payments Other miscellaneous revenue Total 2,950 -0- -0- 154,250 12,300 2,500 24,630 1,750 195,430 Actual $ 710,775 3,957 37,147 48,986 101,608 9,624 35,288 66,323 1,013,708 65,729 12,027 59,251 12,564 16,934 24,484 14,652 12,550 2.516 220,707 13,294 19,149 1,148 15,000 16,815 2,164 26,007 8,707 TOTAL REVENUES $1,946,698 $1,336,699 -37- Variance Favorable (Unfavorable) $ 257 2,957 1,147 2,986 (25,000) (2,492) 9,624 11,288 1,323 2,090 19,229 5,087 (558,049) 2,164 2,734 4,984 3,992 3,550 316 (515,993) 10,344 19,149 1,148 (139,250) 4,515 (336) 1,377 6,957 (106,440) $(609,_999) CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ADMINISTRATION DEPARTMENT FOR THE YEAR ENDED JULY 31, 1994 MKM Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 90,620 $ 87,173 $ 3,447 Social security 6,930 6,479 451 Employee's insurance 65,866 65,969 (103) Retirement 4,100 4,362 (262) OPERATING EXPENSES: Legal 25,500 25,774 (274) Building inspection 3,600 3,481 119 Auditing 1,000 1,876 (876) Civil defense 2,300 1,800 500 Consulting 9,000 4,286 4,714 Custodial services 3,000 2,700 300 Employee appreciation 1,200 91 1,109 Postage 2,600 3,579 (979) Printing and publications 6,500 7,754 (1,254) Dues and training 6,900 8,121 (1,221) Election expense 800 796 4 Programming 1,500 362 1,138 City utilities 2,500 2,867 (367) Telephone 4,100 4,032 68 Travel expense 2,600 621 1,979 Insurance and bonds 5,600 5,544 56 Maintenance 3,100 3,307 (207) Tree stump removal 13,500 12,623 877 Tobacco licenses 600 430 170 Chamber of Commerce 15,000 2,000 13,000 Gas and oil 900 577 323 County Treasurer's collection fees 7,160 7,573 (413) Personal Property tax refund 28,200 18,063 10,137 Miscellaneous 400 --0- 400 Land Cleanup costs -0- 81106 (8,106) SUPPLIES 4,350 4,945 (595) RENTAL EXPENSES - Office equipment 1,400 678 722 CAPITAL OUTLAY Office equipment 6,500 3,767 2,733 Building remodel 75,000 139,135 (64,135) TOTALS $402,326 $4438,871 $(36,545) MKM CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CONTINGENCY ALLOWANCE FOR THE YEAR ENDED JULY 31, 1994 Variance Favorable Budget Actual (Unfavorable) CONTINGENT RESERVE - Land Purchase $40,000 $35,000 5,000 -39- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL POLICE DEPARTMENT FOR THE YEAR ENDED JULY 31, 1994 -40- Variance Favorable (Unfavorable) $ 8,046 1,032 (4,955) 661 4,354 16 68 1,146 2, 1.67 667 1,078 125 (624) (1,734) 640 -0- 212 (1,375) 888 1,491 (1,182) 36 (150) 343 1,124 89 $14,163 Budget Actual PERSONAL SERVICES: Salaries $328,250 $320,204 Social security 25,111 24,079 Employees' insurance 57,515 62,470 Retirement 19,095 18,434 OPERATING EXPENSES: Legal 16,500 12,146 Auditing 975 959 Postage 750 682 Printing and publications 1,800 654 Training 3,800 1,633 Telephone 4,200 3,533 '.Gravel 1,200 122 Dues 450 325 Insurance 7,500 8,124 Maintenance 9,050 10,784 Medical exams 2,000 1,360 Car Expense 1,200 1,200 Miscellaneous 2,500 2,288 SUPPLIES: Supplies 11,180 12,555 Gas and oil 9,000 8,112 Uniforms 9,600 8,109 Ammunition and range 800 1,982 Miscellaneous 800 764 RENTAL EXPENSE 11,100 11,250 CAPITAL OUTLAY: Office equipment 4,300 3,957 Motor vehicles 16,000 14,876 Radio equipment 2,335 2,246 TOTALS $547,011 $532,848 -40- Variance Favorable (Unfavorable) $ 8,046 1,032 (4,955) 661 4,354 16 68 1,146 2, 1.67 667 1,078 125 (624) (1,734) 640 -0- 212 (1,375) 888 1,491 (1,182) 36 (150) 343 1,124 89 $14,163 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CEMETERY FOR THE YEAR ENDED JULY 31, 1994 -41- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $42,545 $38,714 $ 3,831 Social security 31240 2,678 562 Employees' insurance 6,527 6,419 108 Retirement 940 811 129 OPERATING EXPENSES: Legal 100 6 94 Audi i-inq 70 55 15 Printing and publications 190 48 142 Training 510 114 396 Travel 50 10 40 Dues 75 65 10 Construction 4,250 31698 552 Heating fuel 20 - 20 Utilities 1,800 2,178 (378) Telephone 425 441 (16) Insurance 1,410 1,377 33 Maintenance 4,700 4,956 (256) Miscellaneous - - - SUPPLIES: Operating supplies 690 584 106 Gas,Oil,Diesel 1,800 1,810 (10) Uniforms 220 119 101 Small tools 150 480 (330) Sand,Gravel,Rock 750 731 19 RENTAL EXPENSE 11,250 9,800 1,450 CAPITAL OUTLAY: Office equipment 440 418 22 Motorized equipment 5,200 4,469 731 TOTALS $87,352$79,981 7,371 -41- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL FIRE DEPARTMENT FOR THE YEAR ENDED JULY 31, 1994 -42- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES $ 5,400 $ 4,064 $ 1,336 OPERATING EXPENSES: Utilities and telephone 15,900 15,010 890 Insurance 6,500 6,992 (492) Maintenance 6,500 8,552 (2,052) Travel 100 - 100 Training 3,200 2,942 258 Miscellaneous 330 457 (127) SUPPLIES: Gas and oil 1,700 1,544 156 Safety equipment 7,900 7,920 (20) Miscellaneous 2,620 1,316 1,304 HYDRANT RENTAL 12,000 12,000 - CAPITAL OUTLAY: Specialized equipment 3,500 3,519 S19) TOTALS $65,650 $64,316 $1,334 -42- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL PARK DEPARTMENT FOR THE YEAR ENDED JULY 31, 1994 -43- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 45,580 $ 39,815 $ 5,765 Social security 3,490 3,046 444 Employees' insurance 3,820 3,902 (82) OPERATING EXPENSES: Travel 100 - 100 Utilities and telephone 3,600 4,634 (1,034) InSUrance 1,450 1,511 (61) Maintenance 11,600 16,340 (4,740) Miscellaneous 420 259 161 SUPPLIES: Gas and oil 1,500 1,313 187 Small tools 200 48 152 Miscellaneous 975 474 501 CAPITAL OUTLAY: Boat ramp 190,000 89,977 100,023 Motorized equipment 5,400 _ 4,093 ___1 _,307 TOTALS $268,135 $165,412 $102,723 -43- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LIBRARY FOR THE YEAR ENDED JULY 31, 1994 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Auditing Postage Dues Printing and publications Utilities Telephone Travel Training Insurance Maintenance-_ Custodial services SUPPLIES: Supplies Library materials CAPITAL OUTLAY: Office equipment TOTALS 2,200 31,440 3,000 $159,474 -44- 1,808 31,949 2,401 $144,373 392 (509) 599 $15,101 Variance Favorable Budget Actual (Unfavorable) $ 71,695 $ 69,150 $ 2,545 5,500 5,217 283 11,654 11,646 8 3,200 3,433 (233) 285 274 11 450 374 76 300 300 -0- 250 280 (30) 9,800 9,930 (130) 700 512 188 350 37 313 850 382 468 1,100 1,092 8 14,500 3,476 11,024 2,200 2,112 88 2,200 31,440 3,000 $159,474 -44- 1,808 31,949 2,401 $144,373 392 (509) 599 $15,101 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL, FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL SUPERVISED RECREATION FOR THE YEAR ENDED JULY 31, 1994 -45- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 9,195 $10,168 $ (973) Social security 700 777 (77) Employees' insurance 607 476 131 OPERATING EXPENSES: Auditing 70 69 1 Professional fees 800 - 800 Printing and publications 50 175 (125) Utilities 4,000 2,993 1,007 Telephone 250 6 244 Insurance 1,470 2,172 (702) Maintenance 7,900 7,562 338 Little League and BYSA 4,500 6,000 (1,500) Golf, Basketball, and Wrestling 2,050 2,767 (717) SUPPLIES: Gas and oil 200 107 93 Recreation supplies 550 299 251 CAPITAL OUTLAY: Aluminum bleacher boards 15,000 - 15,,000 TOTALS $47,342 $33,571 $13,771 -45- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL SWIMMING POOL FOR THE YEAR ENDED JULY 31,__1994 -46- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $25,523 $20,869 $4,654 Social security 1,950 10,597 353 Employees' insurance 620 643 (23) OPERATING EXPENSES: Auditing 210 206 4 Printing and publications 51.2 670 (158 ) Utilities and telephone 4,000 4,017 (17 ) Insurance 800 818 (18) Maintenance 5,500 3,127 2,373 Stale sales tax 1,000 1,392 (392) Miscellaneous 100 25 75 SUPPLIES: Chemicals 3,600 1,028 2,572 Miscellaneous 1,415 5,261 (3,846) TOTALS $45,230 $39,653 _5,577 -46- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LANDFILL FOR THE YEAR ENDED JULY 31, 1994 -47- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 13,112 $ 14,548 $ (1,436) Social security 1,002 1,223 (221) Employees' insurance 2,335 3,163 (828) Retirement 275 696 (421) OPERATING EXPENSES: Auditing 150 137 13 Printing and publication 50 224 (174) Travel 25 (25) Professional consultants 106,600 88,549 1$,051 Utilities and telephone 450 365 85 Insurance 1,181 1,289 (108) Maintenance 2,100 3,970 (1,870) SUPPLIES: Chemicals 100 44 56 Gas, diesel, and oil 1,000 1,926 (926) Uniforms 100 216 (116) Contract Hauling 598,515 -0-- 598,515 Miscellaneous -,1,570 380 11190 TOTALS $728,540 $116,755 $611,785 -47- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ANIMAL CONTROL FOR THE YEAR ENDED JULY 31, 1994 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Legal Auditing Printing and publications Travel Training Veterinary expense Utilities and telephone Insurance Maintenance Miscellaneous SUPPLIES: Gas and oil Dog license & supplies Uniforms Miscellaneous CAPITAL OUTLAY equipment TOTALS IBM Variance Favorable Budget Actual (Unfavorable) $21,040 $21,632 $ (592) 1,610 1,620 (10) 5,308 5,515 (207) 845 1,026 (181) 500 480 20 70 55 15 600 266 334 250 -0- 250 610 -0- 610 1,200 1,348 (148) 3,020 3,169 (149) 410 357 53 1,750 770 980 250 164 86 1,000 894 106 1,200 1,314 (114) 500 422 78 600 486 114 2,800 -0- 2,800 $43,563 139,518 4,045 CERTIFIED PUBLIC ACCOUNTANT BOX 486 November 22, 1994 Honorable Mayor and Members of the City Council City of Blair, Nebraska Dear Gentlemen: RESIDENCE_,: (402) 468-5753 OFFICE: (407) 476-4W I have audited the general purpose financial statements of the City of Blair, Nebraska, as of and for the years ended July 31, 1993 and 1994; anis have issiiied my report thereon dated November 22, 1994. These general purpose financial statements are the responsibility of the City of Blair, Nebraska, management.. My responsibility is to express an opinio-n on these general purpose financial statements based can my audit. I conducted my audit in accordance with generally accepted auditing standards and GOVERNMENT AUDITING STANDARDS issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards and OMB Circular A-128 require that I plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose 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. I believe that my audit provides a reasonable basis for my opinion. My audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Blair, Nebraska taken as a whole. The accompanying schedule of federal financial 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 audit of the general purpose financial statements and, in my opinion, is fairly presented in all materia]. respects in relation to the general purpose financial statements taken as a whole. Edwar W. Schroeder Certified Public Accountant -49- -50- SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE CITY OF BLAIR FOR THE YEAR ENDED JULY 31, 1994 PROGRAM TITLE CFDA NUMBER GRANT BALANCE REVENUE EXPENSE BALANCE GRANTORS NUMBER AMOUNT 7--31-93 RECOGNIZED INCURRED 7-31-94 National Park Service CFDA ##15-916 #31-00840 $20,000 $ - $ -- Federal Aviation Administration #31-0109-01 54,000 - 1,148 - - FEMA Public Disaster Assistance 19,149 - 19,149 20,590 - Federal Aid in Sport Fish Restoration 90,000 - - 89,977 - e Totals $183,149 $20,297 $110,567 $ - -50- CERTIFIED PUBLIC ACCOUNTANT 1904 `_ 01J I I I >TFZI'',(' T BOX 436 Honorable Mayor and Members the City Council City of Blair, Nebraska Gentlemen: November 22, 1994 RFSIDENCF: (402.) 468-5253 OF FICF.: (402) 426-080 I have audited the general purpose financial statements of the City of Blair, Nebraska, as of and of the years ended July 31, 1993 and 1994, and have issued my report thereon dated November 22, 1994. I conducted my andi.t in accordance with generally accepted auditing standards, GOVERNMENT AUDITING STANDARDS, issued by Comptroller General of the United States, and the provisions of Office of Management and Budget Circular Aw118. "Audits of State E and Local Governments." those standards and OMB Circular A-128 require that I plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to -the City of Blair is the responsibility of the City of Blair's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, I performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, -the objective of my audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, I do not express such an opinion. The results of my tests indicate that, with respect to the items tested, the City of Blair complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to my attention that caused .me to believe that the City of Blair had not complied, in all material respects, with those provisions. This report is intended for the information of management and the Blair City Council. However, this report is a matter of public record and its distribution is not limited. dward W. chroeder �`- CertifLed Public Accountant -51- ' aV,{k`,��'J• W. nY'(l�t 1),3 `�)fd�, !Jtr+j��t CERTIFIED PUBLIC ACCOUNTANT 1,904 `,OU['H 5TRB'LT BOX 486 B%.AIR, NEBR� 5111A 68003 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: November 22, 1994 RFISIDENCE: (402) 468-5253 OFFICE: (4.02) 426-4080 I have audited the general purpose financial, statements of the City of Blair, Nebraska, as of and for the years ended July 31, 1993 and 1994, and have issued my report thereon dated November 22,1994. I conducted my audit in accordance with generally accepted auditing standards, GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards and OMB Circular A-128 require that I plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing my audit of the general purpose financial statements of the City of Blair for the years ended July 31, 1993 and 1994, I considered it s internal control structure in order to determine my auditing procedures for the purpose of expressing my opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the City of Blair is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of 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 internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. -52- Page 2 For the purpose of this report. I have classified the significant internal control structure policies and procedures in the following categories: Accounting Controls Cycles of the Entities Activity Treasury or financing Revenue/receipts Purchases/disbursements External financial reporting Financial Statement Captions Cash and Cash equivalents Receivables Inventory Property and equipment Payable and accrued liabilities Debt Fund balance Accounting Applications Billings Receivables Cash receipts Purchasing and receiving Accounts payable Cash disbursements Payroll Administrative Controls General Requirements Political activity Davis -Bacon Act Civil Rights Cash management Federal financial reports Specific Requirements Types or services Eligibility Matching level of effort Reporting Cost allocation Special requirements, if any For all of the control categories listed above, I obtained an understanding of the design of relevant polices and procedures and whether they have been place in operation, and I assessed control risk. I noted certain matters involving the internal control structure and its operation that I consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to my attention relating to significant deficiencies in the design or operation of the internal control structure that, in my judgment, could adversely affect the entity's ability to record, process, summarize. and report financial data consistent with the assertions of management in the general purpose financial statements. The City of Blair does not have adequate separation of duties. -53- Page :3 A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. My consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are considered to be material weaknesses as defined above. However, I believe none of the reportable conditions described above is a material weakness. This report is intended for the information of management and the Blair City Council. However, this report is a matter of public record and its distribution is not limited. 4A Bdw'W. ar chroeder Certified Public Accountant -54- V CF RTIFIFD PUBLICACCOUNTANT 1904 3C UTI -i :"r`l,RFFF BOX 488 F BLAIR, NL,E3RASKA 68001 November 22, 1994 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RI'SIDGNCG: (402) OFFICE': (402.) 426-4080 I have audited the financial statements of the City of Blair, Nebraska, as of and for the years ended July 31, 1993 and 1994, and have issued my report* thereon dated November 22, 1994. 'In cunnaction with my audit of the 1993 and 1994 general purpose 1:irz�ancieil 2tatements of the City of Blair and with my consideration of t:. t:� City of Blair control structure used to administer federal financial assistance programs, as required by Office of Management and Budge Circular A-128, "Audits of State and Local Government," I selected certain transactions applicable to certain non major federal financial assistance programs for the year ended July 31, 1993 and 1994. As required by OMB Circular A-•128, I have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed, eligibility, and other specific requirements that are applicable to those transactions. My procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Blair's compliance with these requirements. Accordingly, I do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to my attention that caused me to believe that the City of Blair had not complied, in all material respects, with those .requirements. This report is intended for the information of management and the Blair City Council. However, this report is a matter of r public record and its distribution is not limited. Edward W. Schroeder Certified Public Accountant -55- 4�. ' )�f ft� l I� o' }i i , ! it 3 f, ,fit CERTIFIED PUBLIC ACCOUNTANT 1904 `)OUTN s,rRF- r BOX 436 RI_AIR, NEB1ZE'eS)KA 68008 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: November 22, 1994 RESIDENCE: (402.) 463-52,53 OFFICE: (402.) 4M-40130 I have audited the financial statements of the City of Blair, Blair, Nebraska, as of and for the years ended July 31, 1993 and 1994, and have issued my report thereon dated November 22, 1994. I have applied procedures to test the City of Blair's compliance with the following requirements applicable to its federal financ-ial assistance programs, which are identified in the Schedule of: Federal Financial Assistance, for the year ended July 31, 1993 and :1994: Political activity Da--lis-Bacon Act Civil rights Cash management I Relocation assistance and real property acquisition Federal financial reports Allowable costs/cost principles Drug --free Workplace Act Administrative requirements My procedures were limited to the applicable procedures described in the Office of Management and Budgets "Compliance Supplement for Single Audits of State and Local Governments." My procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion of the City of Blair's compliance with the requirements listed in the preceding paragraph. Accordingly, I do not express a such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. ; With respect to items not tested, nothing came to my attention that caused me to believe that the City of Blair had not complied, in all material respects, with those requirements. This report is intended for the information of management and the Blair City Council. However, this report is a matter of public record and its distribution is not. limited. Rdward W. Schroeder Certified Public Accountant -56- "` , �'` V �`, 6" r10,' 3, `� , V��\)1..,If,1J '%�J e � He ,�1. Wdl�',��i ni �l� 1I�,_ CLRTIFILD PUBLIC ACCOUNTANT 7 c)OJ `>OtJ"I H 5TREET BOX 486 BL.ACR, NLBRA'{_A 68008 November 22, 1994 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RGSIDINCE: (402) 468-52.53 OFFICE: (4 02) 426-4080 I have audited the general purpose financial statements of the City of Blair, Nebraska, as of and for the years ended July 31, 1993 and 1994, and have issued my report thereon dated November 22, 1994. I conducted my audit in accordance with generally accepted auditing staladards, GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards and OMB Circular A-128 require that I plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing my audit of the general purpose financial statements of the City of Blair for the years ended July 31, 1993 and 1994, I considered it s internal control structure in order to determine my auditing procedures for the purpose of expressing my opinion on the City of Blair's general purpose financial statements and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses my consideration of internal structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. I have addressed internal control structure policies and procedures relevant to my audit of the general purpose financial statements in a separate report dated November 22, 1994. The management of the City of Blair is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. -57- Page 2 The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of 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, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report. I have classified the significant internal control structure policies and procedures in the following -lategories: Ac:�counttinci Controls Cycles of the.-,,!:r1tities Activity TrP,c`%sur*y ["l-nancing Revenue/ r ece 1 p fps Purchases/disbursements External financial reporting Financial Statement. Captions Cash and Cash equivalents Receivables Inventory Property and equipment Payable and accrued liabilities Debt Fund balance Accounting Applications Billings Receivables Cash receipts Purchasing and receiving Accounts payable Cash disbursements Payroll Administrative Controls General Requirements Political activity Davis -Bacon Act Civil Rights Cash management Federal financial reports Specific Requirements Types or services Eligibility Matching level of effort Reporting Cost allocation Special requirements, if any For all of the internal control structure categories listed above, I obtained an understanding of the design of relevant polices and procedures and whether they have been place in operation, and I assessed control risk. awe Page 3 During the years ended July 31, 1993 and 1994, the City of Blair had no major federal financial assistance programs and expended 100% of its total federal financial assistance under the following non major federal financial assistance programs: National Aviation Administration Federal Emergency Management Agency Federal Aid in Sport Fish Restoration I performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation on internal control structure policies and procedures that I have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the aforementioned nonmajor programs. My procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, I do not express such an opinion. I noted certain matters involving the internal control structure and its operation that I consider to be •reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to my attention relating to significant deficiencies in the design or operation of the internal control structure that, in my judgment, could adversely affect the City of Blair's ability to administer federal financial assistance programs in accordance with applicable laws and regulations. The City of Blair does not have adequate separation of duties. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulation that would be material to a federal. financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. My consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are considered to be material weaknesses as defined above. However, I believe none of the reportable conditions described above is a material weakness. This report is intended for the information of management and the Blair City Council. However, this report is a matter of public record and its distribution is not limited. Edward W. chroeder Certified Public Accountant -59-