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FY1995 Audit Report CityCITY OF BLAIR, NEBRASKA JULY 31, 1995 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 Revenue, Expenditures and Changes in Fund Balance - All Government Fund Types 5-6 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - General Fund 7 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Debt Service Fund 8 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Special Revenue Fund 9 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Capital Improvement Fund 10 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 11 General Fixed Assets Account Group: Statement of General Fixed Assets 12 Statement of Changes in General Fixed Assets 13 General Long -Term Debt Account Group: Statement of General Obligation Bonds Principal and Interest Requirements by Year of Maturity 14 Statement of Changes in General Long -Term Debt 15 Combined Statement of Cash Flow - All Proprietary Fund Types and Similar Trust Funds 16 Comparative Combined Balance Sheets - General and Special Revenue Funds 17 Comparative Combined Balance Sheets - Debt Service and Capital Improvement Funds 18 Comparative Combined Balance Sheets - Enterprise and General Insurance Funds 19 Comparative Combined Balance Sheets - General Fixed Assets and General Long -Term Debt 20 Comparative Combined Statement of Revenues, Expenditures And Changes in Fund Balances - General and Special Revenue Funds 21 Comparative Combined Statement of Revenues, Expenditures And Changes in Fund Balances - Debt Services and Capital Improvements Funds 22 Comparative Combined Statement of Revenues, Expenditures And Changes in Retained Earnings/Fund Balances - Enterprise and Insurance Funds 23 NOTES TO FINANCIAL STATEMENTS 24-30 CITY OF BLAIR, NEBRASKA TABLE OF CONTENTS ti fi STATEMENTS OF INDIVIDUAL FUNDS: Page SPECIAL REVENUE FUNDS: Combining Balance Sheet 31 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Special Revenue Funds 32 Individual Statement of Gross Proceeds Distribution and Changes in Fund Balance - Budget (Cash Basis) and Actual - Special Revenue Funds - Keno Fund 33 Individual Statement'of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Street Fund 34 Individual Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - M.I.R.F Fund 35 Individual Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Development Fund 36 ENTERPRISE FUNDS: Combining Balance Sheet 37 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings 38 Combining Statement of Cash Flow 39 Individual Statement of Revenues and Expenses - Budget (Cash Basis) and Actual - Water 40-41 Individual Statement of Revenues and Expenses - Budget (Cash Basis) and Actual - Sewer 42 SUPPORTING SCHEDULES: Schedule of General Fund Revenues - Budget (Cash Basis) and Actual 43 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Administration Department 44 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Contingency Allowance 45 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Police Department 46 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Cemetery 47 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Fire Department 48 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Park Department 49 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Library 50 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Supervised Recreation 51 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Swimming Pool 52 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Landfill 53 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Animal Control 54 Report on Schedule of Federal Financial Assistance 55 CITY OF BLAIR, NEBRASKA TABLE OF CONTENTS Schedule of Federal Financial Assistance Compliance Report - General Purpose Internal Control Report - General Purpose Compliance Report - Non -major Specific Compliance Report - Major Specific Compliance Report - General Requirements Internal Control Report - Federal Financial Assistance Page 56 57 58-60 61 62 63 64-66 CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET BOX 486 ( ' BLAIR, NEBRASKA 68008 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RESIDENCE: (402) 468-5253 OFFICE: (402) 426-4080 November 27, 1995 "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, 1994, and 1995, 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-12$, "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, 1995, 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 might 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 k such matters. Mayor and Members of the City Council November 27, 1995 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., 1994, and 1995, 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, 1994, and 1995, 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 W. Schroeder Certified Public Accountant CITY OF BLAIR, NEBRASKA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JULY 31, 1995 ASSETS 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 $424,313 $ 633,872 $1,516,653 See Notes to Financial Statements. -3- 4,312,299 $4,482,633 Account Groups General General Fixed Long-term Assets Debt 4,650,451 - 451,579 153,605 $10,808,365 $ 41,639 $4,650,451 $605,184 Proprietary Fund Governmental Fund Types Types Special Debt Capital General General Revenue Service Improvement Enterprise Insurance Cash $120,271 $ - $ 157,941 $ 40,965 $ 205,776 $ - Receivables: Billed user fees - - - - 370,424 - Special assessments - - 1,057,139 - - - Accrued interest 480 868 - 129,369 10,791 - Other - 63,059 - - 2,262 - Investments -at cost (unrestricted) 277,500 - 300,000 - 634,200 - Due from County Treasurer 26,062 - 1,573 Inventory -5,601 30,300 - Prepaid expenses - - - - - Restricted assets - cash and investments - at cost - 569,945 - - 385,750 41,639 Property - net of accumulated depreciation where applicable - - - - 9,163,261 - 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 $424,313 $ 633,872 $1,516,653 See Notes to Financial Statements. -3- 4,312,299 $4,482,633 Account Groups General General Fixed Long-term Assets Debt 4,650,451 - 451,579 153,605 $10,808,365 $ 41,639 $4,650,451 $605,184 CITY OF BLAIR, NEBRASKA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JULY 31 1995 LIABILITIES Accounts payable Accrued interest Accrued expenses Deposits payable Registered warrants Bonds payable Revenue bonds payable Total liabilities Governmental Fund _Tv es Special Debt Capital General Revenue Service Improvement $ 53,785 $ 37,039 $ - $ - - - 18,534 - 13,400 - - - - - 1,046,540 - 405,000 - - 67,185 442,039 1,065,074 - FUND BALANCES Contributed capital Investment in general fixed assets - Retained earnings - appropriated - Retained earnings - unappropriated Fund balance - reserved - Fund balance - unreserved 357,128 Total fund balances 357,128 TOTAL LIABILITIES AND FUND BALANCES $424,313 191,833 - - - 451,579 4,482,633 191,833 451,579 4,482,633 Proprietary Fund Types Enterprise $ 200,738 142,012 4,896 2,320 4,760,000 5,109,966 4,797,105 385,750 515,544 General Insurance Account Groups General General Fixed Long-term Assets Debt - 605,184 4,650,451 - 41,639 - J,VJV,�IJJ 41,639 4,650,451 $633,872 $1,516,653 $4,482,633 $10,808,365 $ 41,639 $4,650,451 $605,184 See Notes to Financial Statements. -4- CITY OF BLAIR, NEBRASKA ' COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE ALL GOVERNMENT FUND TYPES FOR THE YEAR ENDED JULY 31, 1995 Debt Special Capital General Service Revenue Improvement Fund Fund Fund Fund REVENUES: Taxes and special assessments Street revenues Keno proceeds Licenses and permits Charges for services Interest income Bond proceeds Other revenues Total revenues EXPENDITURES: $1,050,002 $1,116,789 59,007 -- 119,226 - 9,466 12,204 -- 260,000 345,110 64,087 1,582,811 1,453,080 Administration 411,130 1,438 Contingency allowance 6,677 - Police Department 603,507 - Cemetery 85,820 - Fire Department 45,414 - Parks Department 94,549 - Library .141,034 - Supervised recreation 39,858 - Swimming pool 44,192 - Landfill 7,583 - Animal control 40,172 - Keno expense - - M.I.R.F. fund expenses - - Development expense - - Street expense - - Cemetery paving - - Pool painting - - Debt service: Bonding costs - 6,500 District construction - 11113,670 Redemption of bonds - 161,233 Bond interest 48,642 Total expenditures 1,519,936 1,331,483 REVENUES OVER (UNDER) EXPENDITURES $ 62,875 $ 121,597 $ 389,040 $ - 431,139 - 53,917 - 16,836 393,724 890,932 _393,724 12,182 - 105,470 - 596,499 - - 4,500 - 5,000 714,151 91500 $ 176,781 $ 384,224 See Notes to Financial Statements -5- CITY OF.BLAIR, NEBRASKA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE ALL GOVERNMENT FUND TYPES FOR THE YEAR ENDED JULY 31, 1995 Debt Special Capital General Service Revenue Improvement Fund Fund Fund Fund REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers - in Operating transfers - out REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE July 31, 1994 FUND BALANCE July 31, 1995 $ 62,875 $ 121,597 $ 176,781 $ 384,224 140,036 114,290 180,000 (173,653) (1,274) (46,000) 29,258 234,613 310,781 34,000 (481,815) (63,591) 327,870 216,966 (118,948) 4,546,224 $ 357,128 $ 451,579 $ 191,833 $4,482,633 See Notes to Financial Statements. -6- CITY OF BLAIR, NEBRASKA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL GENERAL FUND FOR THE YEAR ENDED JULY 31, 1995 REVENUES: Taxes and special assessments Licenses and permits Charges for services Interest income Other revenues Total revenues EXPENDITURES: Administration Contingency allowance Police Department Cemetery Fire Department Parks Department Library Supervised recreation Swimming pool Landfill Animal control Total expenditures REVENUES OVER (UNDER) EXPENDITURES General Fund Variance Favorable Budget Actual (Unfavorable) $1,053,310 37,450 132,500 7,000 319.626 1,549,886 456,846 35,000 607,071 99,497 67,765 105,387 162,541 50,680 47,588 94,760 45,430 1,772,565 (222,679) $1,050,002 59,007 119,226 9,466 345.110 1,582,811 411,130 6,677 603,507 85,820 45,414 94,549 141,034 39,858 44,192 7,583 40,172 1,519,936 62,875 $ (3,308) 21,557 ( 13,274) 2,466 25,484 32,925 45,716 28,323 3,564 13,677 22,351 10,838 21,507 10,822 3,396 87,177 5,258 252,629 285,554 OTHER FINANCING SOURCES (USES): Operating transfers - in 155,865 140,036 (15,829) Operating transfers - out (188,000) (173,653) 14,347 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (254,814) 29,258 $284,072 FUND BALANCE - July 31, 1994 327,870 327,870 FUND BALANCE - July 31, 1995 $ 73,.056 $ 357,128 See Notes to Financial Statements. -7- CITY OF BLAIR, NEBRASKA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL DEBT SERVICE FUND FOR THE YEAR ENDED JULY 31, 1995 Debt Service Fund Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $ 615,034 Interest income 4,000 Bond proceeds 892,450 Other revenues 25,000 Total revenues T1,536,484 EXPENDITURES: Administration 2,452 Bonding costs - District construction 1,397,650 Redemption of bonds 160,700 Bond interest 41,290 Total expenditures 1,602,092 REVENUES OVER (UNDER) EXPENDITURES ( 65,608) OTHER FINANCING SOURCES (USES): Operating transfers - in 130,511 Operating transfers - out - REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 64,903 FUND BALANCE - July 31, 1994 216,966 FUND BALANCE - July 31, 1995 281,869 $1,116,789 12,204 260,000 65,087 1,453,080 1,438 6,500 1,113,670 161,233 48,642 1,331,483 121,597 114,290 ( 1,274) 234,613 216,966 $ 451,579 See Notes to Financial Statements. "-I $501,755 8,204 (632,450) 39.087 (83,404) 1,014 (6,500) 283,980 (533) (7,352) 270,609 187,205 (16,221) ( 1,274) $169,170 CITY OF BLAIR NEBRASKA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL SPECIAL REVENUE FUND FOR THE YEAR ENDED JULY 31,_ 1995 REVENUES: Sales Tax and M.I.R.F. Keno net proceeds Street revenues Interest income Total revenues EXPENDITURES: Keno expense Development expenses Street expenses Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers - in Operating transfers - out Special Revenue Fund Variance Favorable Budget Actual (Unfavorable) $ 375,829 108,000 820,242 7,100 1,311,171 110,000 90,840 982,194 1,183,034 128,137 $ 389,040 53,917 431,139 16,836 890,932 12,182 105,470 596,499 714,151 176,781 180,000 180,000 (46,000) (46,000) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 262,137 310,781 FUND BALANCE - July 31, 1994 (118,948) (118,948) FUND BALANCE - July 31, 1995 $ 143,189 $ 191,833 See Notes to Financial Statements. $ 13,211 (54,083) (389,103) 9,736 (420,239) 97,818 (14,630) 385,695 468,883 48,644 $ 48,644 CITY OF BLAIR, NEBRASKA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL CAPITAL IMPROVEMENT FUND FOR THE YEAR ENDED JULY 31, 1995. Capital Improvement Fund Variance Favorable Budget Actual (Unfavorable) REVENUES: Interest income EXPENDITURES: Cemetery mower Cemetery paving Pool painting Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers - in Operating transfers - out REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES ( 15,800) 4,546,224 $ 4,530,424 $ 482,215 $ 393,724 $(88,491) 2,700 8,500 5,000 16,200 466,015 4,500 5,000 9,500 384,224 34,000 (481,815) (481,815) FUND BALANCE - July 31, 1994 FUND BALANCE - July 31, 1995 (63,591) 4,546,224 $4,482,633 See Notes to Financial Statements. -10- 2,700 4,000 6,700 (81,791) 34,000 $(47,791) 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 1995 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 and grant fees Operating transfers - in Operating transfers - out NET INCOME (LOSS) RETAINED EARNINGS/FUND BALANCE - July 31, 1994 RETAINED EARNINGS/FUND BALANCE - July 31, 1995 $1,220,400 14,000 12,000 12.000 1,258,400 522,187 306,316 164,850 1,500 994,853 263,547 66,500 (127,204) (54,600) 303,603 ( 80,000) 371,846 926,380 $1,298,226 See Notes to Financial Statements. -11- $1,283,363 25,919 13,522 1,322,804 500,701 303,937 253,727 1,475 331,880 1,391,720 (68,916) 89,812 (246,537) (33,860) 324,604 ( 90,189) (25,086) 926,380 $ 901,294 $ 62,963 11,919 (12,000) 1,522 64,404 21,486 2,379 (88,877) 25 (331,880) (396,867) (332,463) 23,312 (119,333) 20,740 21,001 (10,189) $ (396,932) Insurance Fund Variance Favorable Budget Actual (Unfavorable) 271,472 271,472 275,100 275,100 (3,628) 400 (3,228) 28,368 $ 25,140 268,918 268,918 256,353 256,353 12,565 706 13,271 28,368 $ 41,639 (2,554) kz,Z)3'%) 18,747 18,747 16,193 306 16,499 CITY OF BLAIR, NEBRASKA STATEMENT OF GENERAL FIXED ASSETS JULY 31, 1995 See Notes to Financial Statements. -12- Land Buildings Vehicles Equipment Total GENERAL FUND: Administration $ 50,000 $ 934,771 $ 13,730 $ 151,099 $1,149,600 Police - - 80,958 69,174 150,132 Cemetery 115,000 30,378 14,553 20,115 180,046 Fire - - 535,963 55,620 591,583 Park 97,952 .358,872 14,035 256,469 727,328 Library 22,500 116,600 - 30,697 169,797 Supervised recreation - 11,343 - 27,376 38,719 Swimming pool 100,000 237,581 - 165,461 503,042 Landfill 15,000 6,700 - - 21,700 Animal control - 5,686 13,450 2,566 21,702 SPECIAL REVENUE FUNDS - Street 10,000 263,668 215,797 403,933 893,398 CAPITALIZED LEASE - Library - 203,404 - - 203,404 TOTALS $410,452 $2,169,003 $888,486 $1,182,510 $4,650,451 See Notes to Financial Statements. -12- CITY OF BLAIR, NEBRASKA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED JULY 31, 1995 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, 1994 Additions Dispositions 1995 $1,041,767 $107,833 $ - $1,149,600 144,517 34,348 28,733 150,132 167,202 12,844 - 180,046 588,994 2,589 - 591,583 699,522 27,806 - 727,328 169,797 - - 169,797 27,649 11,070 - 38,719 503,042 - - 503,042 103,707 - 82,007 21,700 21,702 - - 21,702 877,938 65,184 49,724 893,398 203,404 - 203,404 $4,549,241 $261,674 $160,464 $4,650,451 See Notes to Financial Statements. -13- Year Ending July 31, 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 CITY OF BLAIR, NEBRASKA STATEMENT OF GENERAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS BY YEAR OF MATURITY JULY 31, 1995 Principal Reauirements $72,513 73,380 84,291 70,000 70,000 45,000 50,000 50,000 55,000 35,000 $605,184 Interest Requirements Total 30,942 $103,455 27,420 100,800 23,594 107,885 19,296 89,296 15,582 85,582 12,587 57,587 10,313 60,313 7,693 57,693 5,027 60,027 2,082 37,082 $154,536 $759,720 See Notes to Financial Statements. -14- CITY OF BLAIR, NEBRASKA STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT FOR THE YEAR ENDED JULY 31 1995 See Notes to Financial Statements. -15- Balance Balance Interest July 31, July 31, Dated Description Rate 1994 Additions Deductions 1995 6/15/88 Various purpose 5.25-6.40% $ 15,000 $ - $ 15,000 $ -0- 1/01/91 IBM financing lease 8.06% 8,280 - 8,280 -0- 10/15/91 Fire Department bonds 5.00-6.20% 135,000 - 20,000 115,000 2/15/94 Various purpose 3.00-4.70% 190,000 - 15,000 175,000 3/01/94 Landfill Closure Loan 4.50% 102,953 - 102,953 -0- 11/15/94 Street sweeper Loan 5.00% -0- 55,184 -0- 55,184 3/01/95 Various purpose 5.10-5.95% -0- 260,000 -0- 260,000 TOTAL $451,233 $315,184 $161,233 $605,184 See Notes to Financial Statements. -15- CITY OF BLAIR, NEBRASKA (474,405) - COMBINED STATEMENT OF CASH FLOW Increase in long-term debt ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS Decrease (increase) in restricted assets FOR THE YEAR ENDED JULY 31, 1995 (246,537) - Bonding costs & grant fees (33,860) - Increase (decrease) in accrued General interest payable Enterprise Insurance 2,409,322 - Funds Funds CASH FLOW FROM OPERATIONS: k k Net operating income (loss) $ (68,916) $ 12,565 Adjustment to reconcile net income to net*cash from operations: Depreciation 331,880 - Decrease (increase) in accounts receivable -user fees (172,771) - Decrease (increase) in accounts receivable -other (2,081) - Decrease (increase) in inventory (3,190) - Decrease (increase) in prepaid expenses (595) - Increase (decrease) in accounts payable 140,242 (347) Decrease in accrued expenses 399 - Increase (decrease) in deposits payable 50 Net cash provided (used) by operations 225,018 12,218 CASH FLOW FROM INVESTING: Purchase of property (2,645,378) - Interest income 89,812 706 Transfers - net 234,415 - Decrease (increase) in accrued interest receivable 5,638 Cash from (used by) investing (2,315,513) 706 CASH FLOW FROM FINANCING: Increase (decrease) in registered warrants (474,405) - Increase in contributed capital 476,171 Increase in long-term debt 2,515,000 - Decrease (increase) in restricted assets 59,845 - Interest expense (246,537) - Bonding costs & grant fees (33,860) - Increase (decrease) in accrued interest payable 113,108 - Cash from (used in) financing 2,409,322 - NET INCREASE (DECREASE) IN CASH 318,827 12,924 CASH AND CASH EQUIVALENTS - Beginning of the period 521,149 28,715 CASH AND CASH EQUIVALENTS - End of the period $ 839,976 $ 41,639 See Notes to Financial Statements. -16- CITY OF BLAIR, NEBRASKA COMPARATIVE COMBINED BALANCE SHEETS GENERAL AND SPECIAL REVENUE FUNDS FOR THE YEARS. ENDED JULY 31, 1994 AND 1995 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 Deposits payable Revenue bonds payable Total Liabilities FUND BALANCES Fund balance - reserved Fund balance - unreserved Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES GENERAL FUNDS 1994 1995 $252,555 3,024 117 152,500 36,262 $444,458 $107,388 9,200 116,588 327,870 327,870 $444,458 $120,271 480 277,500 26,062 $424,313 $ 53,785 13,400 67,185 357,128 357,128 8424.313 SPECIAL REVENUE FUNDS 1994 1995 1,277 63,060 567,652 $631,989 $150,937 600,000 750,.937 868 63,059 569,945 X633.872 $ 37,039 405,000 442,039 (118,948) 191,833 (118,948) 191,833 $631,989 $633,872 See Notes to Financial Statements. -17- CITY OF BLAIR, NEBRASKA COMPARATIVE COMBINED BALANCE SHEETS DEBT SERVICE AND CAPITAL IMPROVEMENT FUNDS FOR THE YEARS ENDED JULY 31, 1994 AND 1995 DEBT SERVICE FUNDS 1994 1995 ASSETS CAPITAL IMPROVEMENT FUNDS 1994 1995 Cash $ 88,465 $ 157,941 $ 16,007 $ 40,965 Receivables: Special assessments 387,244 1,057,139 - - Accrued interest - - 131,948 129,369 Investments - at cost (unrestricted) 150,000 300,000 - - Due from County Treasurer 1,461 1,573 - - Contract receivable - OPPD - - 4,398,270 4,312,299 TOTAL ASSETS $627,170 $1,516,653 $4,546,225 $4,482,633 LIABILITIES Accounts payable $ - $ - $ - $ - Accrued interest 5,657 18,534 - - Registered warrants 404,547 1,046,540 - Total Liabilities 410,204 1,065,074 - - FUND BALANCES Fund balance - unreserved 216,966 451,579 TOTAL LIABILITIES AND FUND BALANCES $627,170 $1,516,653 4,546,225 4,482,633 $4,546,225 $4,482,633 See Notes to Financial Statements. 1".* CITY OF BLAIR, NEBRASKA COMPARATIVE COMBINED BALANCE SHEETS ENTERPRISE AND GENERAL INSURANCE FUNDS FOR THE YEARS ENDED JULY 31, 1994 AND 1995 ASSETS Cash Receivables: Billed user fees Accrued interest Other Investments - at cost (unrestricted) Inventory Prepaid expenses Restricted assets - cash and investments - at cost Property - net of accumulated depreciation, where applicable TOTAL ASSETS LIABILITIES Accounts payable Accrued interest Accrued expenses Deposits payable Registered warrants Revenue bonds payable Total Liabilities FUND BALANCES Contributed capital Retained earnings - appropriated Retained earnings - unappropriated Fund balance - reserved Total Fund Balances TOTAL LIABILITIES ENTERPRISE FUNDS 1994 1995 $ 202,800 $ 205,776 197,653 370,424 16,429 10,791 181 2,262 318,349 634,200 27,110 30,300 5,006 5,601 445,595 385,750 GENERAL INSURANCE FUNDS 1994 1995 28,715 41,639 6,849763 9,163,261 - $8,062,886 $10,808,365 $ 28,715 $ 41,639 $ 60,496 $ 200,738 28,904 142,012 4,497 4,896 2,270 2,320 474,405 - 2,245,000 4,760,000 2,815,572 5,109,966 4,320,934 4,797,105 445,595 385,750 480,785 515,544 5,247,314 5,698,399 AND FUND BALANCES $8,062,886 $10,808,365 See Notes to Financial Statements. -19- $ 347 $ - 347 28,368 28,368 $ 28,715 41,639 41,639 $ 41,639 CITY OF BLAIR, NEBRASKA COMPARATIVE COMBINED BALANCE SHEETS GENERAL FIXED ASSETS AND GENERAL LONG-TERM DEBT FOR THE YEARS ENDED JULY 31, 1994 AND 1995 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 1994 1995 1994 1995 $4,549,241 $4,650,451 $ - $ - y 216,966 451,579 234,267 153,605 $4,549,241 $4,650,451 $451,233 $605,184 $442,953 $605,184 8,280 - 451,233 605,184 4,549,241 4,650,451 - $4,549,241 $4,650,451 $451,233 $605,184 See Notes to Financial Statements. -20- REVENUES AND OTHER FINANCIAL SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE - BEGINNING FUND BALANCE - ENDING 13,532 29,258 (298,585) 310,781 314,338 327,870 179,637 (118,948) $ 327,870 $ 357,128 $ (118,948)$ 191,833 See Notes to Financial Statements -21- 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, 1994 AND 1995 SPECIAL GENERAL REVENUE FUNDS FUNDS 1994 1995 1994 1995 REVENUES Taxes and special assessments $1,013,708 $1,050,002 $ 348,312 $ 389,040 Keno net proceeds - - - 53,917 Street revenues - - 389,280 431,139 Licenses and permits 65,729 59,007 - - Charges for services 154,978 119,226 - - Interest income 13,294 9,466 7,457 16,836 Bond proceeds 111,000 - - - Other revenues 88,990 345,110 - Total revenues 1,447,699 1,582,811 745,049 890,932 EXPENDITURES Administration 438,871 411,130 - - Contingency allowance 35,000 6,677 - - Police Department 532,848 603,507 - - i Cemetery 79,981 85,820 - - Fire Department 64,316 45,414 - - Parks Department 165,412 94,549 - - Library 144,373 141,034 - - Supervised recreation 33,571 39,858 - - Swimming pool 39,653 44,192 - - Landfill 116,755 7,583 - - Animal control 39,518 40,172 - - Keno expenses - - - 12,182 M.I.R.F. fund - - 50,134 - Development - - 598,409 105,470 Street - - 528,224 596,499 Total expenditures 1,690,298 1,519,936 1,176,767 714,151 REVENUES OVER (UNDER) EXPENDITURES (242,599) 62,875 (431,718) 176,781 OTHER FINANCING SOURCES (USES): Operating transfers - in 327,222 140,036 153,133 180,000 Operating transfers - out (71,091) (173,653) (20,000) (46,000) REVENUES AND OTHER FINANCIAL SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE - BEGINNING FUND BALANCE - ENDING 13,532 29,258 (298,585) 310,781 314,338 327,870 179,637 (118,948) $ 327,870 $ 357,128 $ (118,948)$ 191,833 See Notes to Financial Statements -21- 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, 1994 AND 1995 DEBT CAPITAL SERVICE IMPROVEMENT FUNDS FUNDS 1994 1995 1994 1995 REVENUES Taxes and special assessments $519,464 $1,116,789 $ - $ - Interest income 9,476 12,204 402,124 393,724 Bond proceeds 190,000 260,000 - - Other revenues 181,423 64,087 - - Total revenues 900,363 1,453,080 402,124 393,724 EXPENDITURES Administration Capital outlay Debt service: Bonding costs District construction Redemption of bonds Bond interest Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): 7,968 1,438 - 6,500 510,015 1,113,670 48,618 161,233 25,057 48,642 591,658 1,331,483 308,705 121,597 (681,506) 9,500 9,500 384,224 Operating transfers - in 15,511 114,290 7,000 34,000 Operating transfers - out (111,408) (1,274) 541,815 (481,815) REVENUES AND OTHER FINANCIAL SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 212,808 234,613 (132,691) (63,591) FUND BALANCE - BEGINNING 4,158 216,966 4,678,916 4,546,224 FUND BALANCE - ENDING $216,966 $ 451,579 $4,546,225 $4,482,633 See Notes to Financial Statements r -22- 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, 1994 AND 1995 ENTERPRISE INSURANCE FUNDS FUNDS 1994 1995 1994 1995 OPERATING REVENUES: User fees $ 959,974 $1,283,363 $ - $ - Sale of merchandise 20,777 25,919 - - Rental 12,000 - - - r Insurance contributions - - 259,788 268,918 Other 39,937 13,522 - - Total 1,032,688 1,322,804 259,788 268,918 EXPENSES: Personal services 456,585 500,701 - - Operating expenses 235,491 303,937 - - Materials and supplies 108,250 253,727 - - Rental expense 1,506 1,475 - - Depreciation 287,389 331,880 - - Payments of insurance benefits - - 251,322 256,353 Total 1,089,2,21 1,391,720 _251,322 256,353 OPERATING INCOME (LOSS) ( 56,533) (68,916) 8,466 12,565 OTHER REVENUE (EXPENSE): Interest Income 44,544 89,812 519 706 Interest expense (133,669) (246,537) - w Bonding costs ( 740) (33,860) - - Operating transfers - in 365,353 324,604 - - Operating transfers - out (123,906) ( 90,189) - - NET INCOME (LOSS) 95,049 (25,086) 8,985 13,271 RETAINED EARNINGS/FUND BALANCE Beginning 831,331 926,380 19,383 28,368 r RETAINED EARNINGS/FUND BALANCE Ending $ 926,380 $ 901,294 $ 28,368 $ 4.1,639 See Notes to Financial Statements -23- ' CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS Z. 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 and general long-term obligation account groups, that are used to account for property and equipment and long-term obligations of governmental funds. General long-term bonded debt was repaid through the Debt Service Fund. B. Reportinq Entit 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, 1994 and 1995. 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. -24- 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. Inventory• 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. -25- 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, 1994, and 1995. I. Investments: The Investments are bank Certificates of Deposit or E 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. -26- CITY OF BLAIR, NEBRASKA. NOTES TO FINANCIAL STATEMENTS,_ Continued 1. SUMMARY OF SIGNIFICANT 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: Keno funds 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 Reserve for insurance claims Total restricted assets 1995 Special Enterprise Insurance Revenue Fund Funds Funds $ 37,828 $ $ - 75,967 - - 4,850 - - 451,300 - - - 385,750 - - $445,595 41,639 $569,945 $ 385,750 $ 41,639 1994 Special Enterprise Insurance Revenue Fund Funds Funds $ 76,156 $ - $ - 4,124 - - 487,372 - 445,595 - - 28,715 $567,652 $445,595 $ 28,715 IWXM CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS, continued 3. LONG-TERM DEBT Water Debt: Rate Total Refunding Bonds 3.2-6.3% $2,065,000 Anticipation Notes 4.75% $2,695,000 Annual Principal Requirements For Water Bonds Year Ending July 31, 1996 $ 95,000 1997 90,000 1998 2,785,000 1999 80,000 2000 80,000 2001-2014 1,630,000. TOTAL $4,760,000 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, 19$8 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 1994 or 1995. Sales Tax Revenue Bonds: Rate November 15, 1993 2.7-3.5% Year Ending July 31 1996 1997 TOTAL Total $405,000 Annual Principal 200,000 205,000 $405,000 The payment of the Sales Tax Revenue Bonds is collateralized by the pledging of future sales tax receipts. CMZ CITY OF BLAIR, NEBRASKA 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 40 of gross wage in employee contributions and 40 of gross wage in contributions from the City are invested with an investment p manager. The employees must have accumulated one year of 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, 1994 and 1995, were $62,468 and $67,986 respectively. Contributions are expected to remain relatively level from year to year. The 1995 covered payroll and total payroll were $849,825 and $983,917 respectfully. The policemen are covered under 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 $36,868 for 1994 and $42,427 for 1995, 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 1994 and 1995. 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, 1994 and 1995. 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. -29- 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 The City of Blair has closed its landfill operations. All material closing and monitoring costs were accrued over the remaining life of the landfill. The Landfill closed October 31, 1993 and any remaining monitoring costs will be paid from City funds but are not anticipated to be material to the financial statements. 7. ACCOUNTS RECEIVABLE - SPECIAL ASSESSMENTS The City of Blair's special assessments outstanding as of July 31, 1994 and 1995, are composed of the following: 1994 1995 Special assessment principle $228,536 $ 355,972 Special assessments available not levied 158,708 701,167 Total Special Assessments Receivable $387,244 $1,057,139 8. INSURANCE FUND a 10. 11. 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, 1994 and 1995, were $259,788 and $268,918 respectively. Dental and vision benefits are limited and do not create significant risk for the City. 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. DEFICIT FUND BALANCE The City of Blair sewer fund had a deficit fund balance of $990,710 as of July 31, 1995. PROPERTY TAX CALENDAR The City of Blair levy date is December 31 with tax due dates by halves on May and September of the following year. -30- CITY OF BLAIR, NEBRASKA COMBINING BALANCE SHEET -- SPECIAL REVENUE FUNDS JULY 31, 1995 CASH SAVINGS INVESTMENTS SALES TAX\KENO RECEIVABLE ACCRUED INTEREST RECEIVABLE TOTAL ASSETS Keno Street M.I.R.F. Fund Fund Fund $37,828 $ 25,967 $ 4,850 - 50,000 - 5,339 - - $43,167 $ 75,967 $ 4,850 Development Fund Total $101,300 $169,945 350,000 400,000 57,720 63,059 868 868 $509,888 $633,872 LIABILITIES AND FUND BALANCES STATE TAX PAYABLE $ 1,129 $ - $ - $ - $ 1,129 ACCOUNTS PAYABLE - 35,910 - 35,910 REVENUE BONDS PAYABLE - - - 405,000 405,000 FUND BALANCE 42,038 40,057 4,850 104,888 191,833 TOTAL $43,167 $ 75,967 $ 4,850 509,888 $633,872 -31- -32- CITY OF BLAIR, NEBRASKA COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JULY 31 1995 Keno Street M.I.R.F. Development Fund' Fund Fund Fund Total REVENUES: Net Keno proceeds $53,917 $ - $ - $ - $ 53,917 Street revenues - 431,139 - - 431,139 M.I.R.F. revenues - - 16,416 - 16,416 Interest on investments 303 1,688 310 14,535 16,836 Sales and use tax - - - 372,624 372,624 Total revenues 54,220 432,827 16,726 387,159 890,932 EXPENDITURES: Salaries - 172,519 - - 172,519 FICA - 13,462 - - 13,462 Retirement - 8,037 - - 8,737 Employee insurance - 33,946 - - 33,946 Legal - - _ Engineering - 3,960 - - 3,960 Auditing - 1,913 - - 1,913 Office expenses 812 290 - - 1,102 Dues - 179 - - 179 Utilities - 6,268 - - 6,268 Telephone - 949 - - 949 Travel - - _ _ _ Training -193 - - 193 Insurance - 12,506 - - 12,506 Maintenance - 24,366 - - 24,366 Street lighting - 91,958 - - 91,958 Contingency reserve - 2,194 - - 2,194 Car expense - 743 - - 743 Collection fees 11,370 - - 10,891 22,261 Development expenses - - - 94,579 94,579 Sand, gravel and rock - 11,126 - - 11,126 Gas, diesel and oil - 10,339 - - 10,339 Materials and supplies - 3,309 - - 3,309 Rental - - Capital outlay: Building - - Motorized equipment - 65,184 - - 65,184 Street improvements - 132,358 - - 132,358 Total expenditures 12,182 596,499 - 105,470 714,151 REVENUES OVER (UNDER) EXPENDITURES 42,038 (163,672) 16,726 281,689 176,781 OTHER FINANCING SOURCES (USES): Operating transfers - in - 180,000 - - 180,000 Operating transfers - out - (30,000) (161000) - (46,000 REVENUES OVER (UNDER) EXPENDITURES 42,038 (13,672) 726 281,689 310,781 FUND BALANDE - July 31, 1994 - 53,729 4,124 (176,801) (118,948) FUND BALANCE - July 31, 1995 $42,038 $ 40,057 $ 4,850 _104,888 191,833 -32- PRIZE RESERVE FUND RECONCILIATION FOR THE REPORTING PERIOD Beginning fund Balance Increase to Fund Withdrawals from Fund Ending Fund Balance -33- $ 0 697 0 $697 CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF GROSS PROCEEDS DISTRIBUTION AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL, SPECIAL REVENUE FUNDS - KENO FUND FOR THE YEAR ENDED JULY 31, 1995 Budget Actual Variance GROSS PROCEEDS - $568,508 - PRIZES: Declared Prizes - 437,052 - Unclaimed Wins - (2,054) - Net Prizes Paid - 434,998 - w NET HOLD f - 133510 , - ALLOWABLE EXPENSES PAID: Lottery Operator's Commission - (79,593) - NET KENO PROCEEDS $108,000 53,917 $(541,083) EXPENSES PAID BY CITY: State Taxes 22,000 11,370 10,630 Other Expenses 14,000 115 13,885 TOTAL EXPENSES PAID 36,000 11,485 24,515 PROCEEDS AVAILABLE FOR DISTRIBUTION 72,000 42,432 (29,568) TRANSFER TO PRIZE RESERVES - 697 (697) TRANSFERS TO CITY _(74,000) - 74,000 NET AFTER TRANSFERS (2,000) 41,735 43,735 Beginning Keno Account Fund Balance - - - Interest 2,000 303 (1,697) KENO ACCOUNT FUND BALANCE $ - $ 42,038 $ 42,038 PRIZE RESERVE FUND RECONCILIATION FOR THE REPORTING PERIOD Beginning fund Balance Increase to Fund Withdrawals from Fund Ending Fund Balance -33- $ 0 697 0 $697 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, 1995 Variance Favorable Budget Actual (Unfavorable) REVENUES: Highway allocation $ 342,000 $356,700 $ 14,700 Motor vehicle pro -rata 12,010 - (12,010) Incentive payment 3,000 3,000 - State maintenance agreement 14,532 13,633 (899) Bond proceeds 400,000 55,184 (344,816) Sale of rock 1,600 556 (1,044) Equipment rental 100 - (100) Interest on investments 1,500 1,688 188 Reimbursed expenses 7,000 2,066 (4,934) Sale of assets 40,000 - (40,000) Total revenues 821,742 432,827 (388,915) EXPENDITURES: Salaries 182,486 172,519 9,967 FICA 13,960 13,462 498 Retirement 7,950 8,737 (787) Employee insurance 39,478 33,946 5,532 Legal 300 - 300 Engineering 2,500 3,960 (1,460) Auditing 1,800 1,913 (113) Office expense 350 290 60 Dues 320 179 141 Utilities 8,200 6,268 1,932 Telephone 1,200 949 251 Travel 200 - 200 Training 200 193 7 Insurance 12,200 12,506 ( 306) Maintenance 23,100 24,366 ( 1,266) Street lighting 88,000 91,958 (3,958) Contingency reserve 3,000 2,194 806 Car expense 600 743 (143) Sand, gravel, and rock 13,000 11,126 1,874 Gas, diesel, and oil 10,500 10,339 161 Materials and supplies 2,950 3,309 (359) Rental 3,000 - 3,000 Capital outlay: Buildings - - - Equipment 48,400 65,184 (16,784) Street improvements 518,500 132,358 386,142 Total expenditures 982,194 596,4.99 385,695 REVENUES OVER (UNDER) EXPENDITURES (160,452) (163,672) (3,220) OTHER FINANCING SOURCES (USES): Operating transfers -in 180,000 180,000 - Operating transfers --out (30,000) (30,000) - REVENUES OVER (UNDER) EXPENDITURES (10,452) (13,672) $ (3,220) FUND BALANCE - JULY 31, 1994 53,729 53,729 FUND BALANCE - JULY 31, 1995 $ 43,277 $ 40,057 -34- 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, 1995 REVENUES: M.I.R.F. revenues Interest income Total revenue EXPENDITURES: None REVENUES OVER (UNDER) EXPENDITURES BEFORE TRANSFERS TRANSFER OUT REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - July 31, 1994 FUND BALANCE - July 31, 1995 -35- Variance Favorable Budget Actual (Unfavorable) $ 16,000 $ 16,416 $ 416 600 310 (290) 16,600 _ 16,726 126 16,600 16,726 (16,000) (16,000) 600 4,124 $ 4,724 726 4,124 $ 4,850 126 $ 126 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, 1995 REVENUES: Sales tax Use tax Interest income Total revenue EXPENDITURES: State collection fees < Refunds Sewer extension Gateway fees Bond interest Total expenditures l REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - July 31, 1994 FUND BALANCE - July 31, 1995 -36- Variance Favorable Budget Actual (Unfavorable) $ 287,307 $ 359,528 $ 72,221 72,522 13,096 (59,426) 3,000 14,535 11,535 362,829 387,159 24,330 10,900 10,891 - 9,575 46,000 44,227 15,000 15,000 18,940 25,777 90,840 105,470 9 (9,575) 1,773 (6,837) (14,630) 271,989 281,689 $ 9,700 (176,801) (176,801) $ 95,188 $ 104,888 Page Left Blank Intentionally CITY OF BLAIR, NEBRASKA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FOR THE YEAR ENDED JULY 31, 1995 E 1 -38- Water Sewer Total OPERATING REVENUES: User fees $ 941,973 $ 341,390 $1,283,363 Sale of merchandise 20,269 5,650 25,919 Other 13,522 - 13,522 Total 975,764 347,040 1,322,804 EXPENSES: Personal services 338,750 161,951 500,701 Operating expenses 207,535 96,402 303,937 Materials and supplies 224,555 29,172 253,727 Rental expense 839 636 1,475 Depreciation 254,594 77,286 331,880 Total 1,026,273 365,447 1,391,720 OPERATING INCOME (LOSS) (50,509) (18,407) (68,916) OTHER REVENUE (EXPENSE): Interest income 85,240 4,572 89,812 Interest expense (246,537) - (246,537) Bonding and grant fees (33,860) - (33,860) Operating transfers -in 323,004 1,600 324,604 Operating transfers -out (90,189) - (90,189) NET INCOME (LOSS) (12,851) (12,235) (25,086) RETAINED EARNINGS (DEFICIT) July 31, 1994 1,904,855 (9.78,475) 926,380 RETAINED EARNINGS (DEFICIT) July 31, 1995 $1,892,004 $(990,710) $ 901,294 E 1 -38- CITY OF BLAIR, NEBRASKA COMBINING STATEMENT OF CASH FLOW ENTERPRISE FUNDS FOR THE YEAR ENDED JULY 31, 1995 Water Sewer Total CASH FLOW FROM OPERATIONS: Net operating income (loss) $ (50,509) $(18,407) $ (68,916) Adjustment to reconcile net income to net cash from operations: Depreciation 254,594 77,286 331,880 Decrease (increase) in accounts receivable - user fees (169,637) (3,134) (172,771) Decrease (increase) in accounts receivable - other (291) (1,790) (2,081) Decrease (increase) in inventory (3,190) - (3,190) Decrease (increase) in prepaid expenses (164) (431) (595) Increase (decrease) in accounts payable 134,047 6,195 140,242 Increase (decrease) in accrued expenses 399 - 399 Increase (decrease) in deposits payable 50 - 50 Net cash provided (used) by operations 165,299 59,719 225,018 CASH FLOW FROM INVESTING: Purchase of property (2,597,180) (48,198) (2,645,378) Interest income 85,240 4,572 89,812 Transfers - net 232,815 1,600 234,415 Decrease (increase) in accrued interest receivable 5,638 - 5,638 Cash flow from (used in) investing (2,273,487) (42,026) (2,315,513) CASH FLOW FROM FINANCING: Increase (decrease) in Registered warrants (474,405) - (474,405) Increase in contributed capital 476,171 476,171 Increase in long-term debt 2,515,000 - 2,515,000 Decrease (increase) in restricted assets 59,845 - 59,845 Interest expense (246,537) - (246,537) Bonding and grant fees (33,860) - (33,860) Increase (decrease) in accrued interest payable _ 113,108 - 113,108 Cash flow from (used in) financing 2,409,322 - 2,409,322 NET INCREASE (DECREASE) IN CASH 301,134 17,693 318,827 CASH AND CASH EQUIVALENTS - Beginning of the period CASH AND CASH EQUIVALENTS End of the period -39- 419,473 101,676 521,149 $ 720,607 $119,369 $ 839,976 CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - WATER FOR THE YEAR ENDED JULY 31, 1995 -40- Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees $886,400 $941,973 $ 55,573 Sale of merchandise 12,000 20,269 8,269 Forfeited discounts 8,000 8,129 129 Hydrant rental 12,000 - (12,000) Other 4,000 5,393 1,393 Total revenues 922,400 975,764 53,364 EXPENSES: Personal services: Salaries 266,632 257,627 9,005 FICA 20,398 19,800 598 Workman's compensation 6,600 6,126 474 HAL insurance 41,712 41,768 (56) Retirement (city share) 11,099 12,160 (1,061) Unemployment and disability 2,550 1,269 1,281 Total 348,991 338,750 10,241 Operating expenses: Legal fees 400 23 377 Auditing 1,600 1,683 (83) Consultants/Lab fee 10,000 4,351 5,649 Employee appreciation 750 151 599 Postage 5,000 6,286 (1,286) Printing and publications 500 392 108 Computer programming 1,000 4,591 (3,591) Schools, travel, and training 2,000 833 1,167 Dues 2,750 2,545 205 Utilities 155,000 133,347 21,653 Telephone 2,400 1,979 421 Vehicle insurance 800 567 233 Liability insurance 2,500 1,918 582 Buildings and contents insurance 4,000 3,791 209 Employee bonds 300 - 300 Radio maintenance 600 514 86 Office equipment maintenance 1,000 678 322 Motorized equipment maintenance 2,200 1,788 412 Building maintenance 7,500 12,230 (4,730) Major maintenance 10,500 21,983 (11,483) Contingent reserve 4,500 1,215 3,285 Maintenance agreements 3,500 3,402 98 Car expense 400 320 80 Bad accounts 200 2,948 (2,748) Total 219,400 207,535 11,865 - continued - -40- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - WATER FOR THE YEAR ENDED JULY 31, 1995 r Variance Favorable - continued - Budget Actual (Unfavorable) EXPENSES: Materials and supplies: Office supplies $ 1,700 $ 1,772 $ (72) Janitorial supplies 300 571 (271) Stores and supplies 2,500 1,747 753 Chemicals 60,000 113,334 (53,334) Supplies for inventory 10,000 3,359 6,641 Gasoline 3,000 2,178 822 Clothing allowance 800 969 (169) Small tools 900 1,656 (756) Construction contracts 51,500 96,857 (45,357) Other materials and supplies 3,800 _ 2,112 1,688 Total 134,500 224,555 (90,055) Rental expense - Office equipment 900 839 61 Total expenses 703,791 771,679 (67,888) OPERATING INCOME (LOSS) BEFORE DEPRECIATION r 218,609 204,085 (14,524) DEPRECIATION - 254,594 (254,594) OPERATING INCOME (LOSS) 218,609 (50,509) (269,118) OTHER REVENUES (EXPENSES): Interest income 64,500 85,240 20,740 Interest expense (127,204) (246,537) (119,333) e Bonding and grant fees (54,600) (33,860) 20,740 Operating transfers - in 303,603 323,004 19,401 ` Operating transfers - out G (80,000) (90,189) (10,189) NET INCOME (LOSS) $ 324,908 $ (12,851) $(337,759) -41- -42- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - SEWER FOR THE YEAR ENDED JULY 31, 1995 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees $334,000 $341,390 $ 7,390 Sale of merchandise 2,000 5,650 3,650 Total revenues 336,000 347,040 11,040 EXPENSES: Personal services: Salaries 131,540 120,615 10,925 FICA 10,062 9,546 516 Workman's compensation 2,900 4,083 (1,183) r H.A.L. insurance 20,710 20,253 457 Retirement (city share) 6,699 6,820 (121) Unemployment and disability 1,285 634 651 Total 173,196 161,951 11,245 Operating expense: Legal 200 - 200 Auditing 700 765 (65) Consulting/engineering 7,300 15,865 (8,565) Employee appreciation 300 171 129 Postage 2,000 3,271 (1,271) Printing and publication 300 326 (26) Computer programming 600 51 549 School, travel and training 1,000 1,293 (293) Dues 1,600 1,230 370 Utilities 46,000 43,605 2,395 Telephone 900 736 164 Insurance 6,200 6,173 27 Maintenance 15,600 22,736 (7,136) Car expense 216 180 36 Contingent reserve 4,000 - 4,000 Total 86,916 96,402 (9,486) Materials and supplies 30,350 29,172 1,178 Rental expense 600 636 (36) Total expenses 291,062 288,161 2,901 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 44,938 58,879 13,941 DEPRECIATION - 77,286 (77,286) OPERATING INCOME (LOSS) 44,938 (18,407) (63,345) OTHER REVENUE (EXPENSE): Interest income 2,000 4,572 2,572 Transfer - in - 1,600 1,600 NET INCOME (LOSS) $ 46,938 $(12,235) $(59,173) -42- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND REVENUES BUDGET (CASH BASIS) AND ACTUAL FOR THE YEAR ENDED JULY 31, 1995 REVENUES: Taxes: Property taxes Interest on taxes Insurance tax Receipts in lieu of taxes State aid Motor vehicle pro -rate Homestead relief Franchise tax Total Charges for services: Business Licenses and Permits Library Landfill collections Cemetery lots Grave openings Swimming pool fees Other fees and charges Sales of fireworks Building and land leases Total INTEREST INCOME OTHER REVENUES: State landfill grant State disaster funds Grant -police Grant -park Gifts Boat dock reimbursement Sale of assets County inspector payments Other miscellaneous revenue Total Budget $ 746,010 3,000 37,200 39,500 104,100 35,100 88,400 1,053,310 37,450 10,090 48,000 11,100 15,100 18,500 16,910 11,000 1,800 169,950 Actual $ 745,546 5,479 34,257 48,144 100,476 3,202 36,617 76.281 1,050,002 59,007 12,968 17,415 8,510 17,405 25,327 22,231 14,100 1.270 178,233 7,000 9,466 165,000 1,500 25,000 90,000 7,500 3,000 25,526 2,100 319,626 163,819 1,030 27,611 90,000 1,241 10,000 14,819 26,051 10,539 345,110 TOTAL REVENUES $1,549,886 $1,582,811 -43- Variance Favorable (Unfavorable) $ (464) 2,479 (2,943) 8,644 (3,624) 3,202 1,517 (12,119) (3,308) 21,557 2,878 (30,585) (2,590) 2,305 6,827 5,321 3,100 (530) 8,283 2,466 (1,181) (470) 2,611 (6,259) 10,000 11,819 525 8.439 25,484 $ 32,925 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ADMINISTRATION DEPARTMENT FOR THE YEAR ENDED JULY 31,1995 Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 95,640 $ 95,153 $ 487 l Social security 7,320 7,218 102 Employee's insurance 69,206 68,858 348 Retirement 4,420 4,716 (296) OPERATING EXPENSES: Legal 28,600 27,189 1,411 Building inspection 3,600 4,190 (590) is Auditing 1,500 1,202 298 Civil defense 2,300 1,800 500 Consulting 29,000 9,856 19,144 f Custodial services 3,200 3,436 (236) Employee appreciation 750 674 76 Postage 2,600 2,990 (390) Printing and publications 7,000 5,686 1,314 Dues and training 8,900 9,863 (963) Election expense 1,000 1,101 (101) Programming 750 511 239 City utilities 3,000 4,269 (1,269) Telephone 4,250 3,143 1,107 Travel expense 3,000 806 2,194 Insurance and bonds 6,200 5,417 783 Maintenance 3,500 11,121 (7,621) Tree stump removal 13,500 10,979 2,521 Tobacco licenses 600 405 195 Chamber of Commerce 2,000 1,500 500 Gas and oil 1,100 789 311 County Treasurer's collection fees 7,460 7,978 (518) Personal Property tax refund 8,000 3,288 4,712 Miscellaneous 400 199 201 SUPPLIES 4,550 8,124 (3,574) RENTAL EXPENSES - Office equipment 1,200 836 364 CAPITAL OUTLAY Office equipment 12,300 8,892 3,408 Building remodel. 120,000 98,941 21,059 TOTALS $456,846 $411,130 $ 45,716 -44- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CONTINGENCY ALLOWANCE FOR THE YEAR ENDED JULY 31, 1995 CONTINGENT RESERVE - Hall painting -45- Variance Favorable Budget Actual (Unfavorable) $35,000 $ 6,677 $28,323 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL POLICE DEPARTMENT FOR THE YEAR ENDED JULY 31, 1995 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Legal Auditing Postage Printing and publications Training Telephone Travel Dues Insurance Maintenance Medical exams Car Expense Great\Dare programs Miscellaneous SUPPLIES: Supplies Gas and oil Uniforms Ammunition and range Miscellaneous RENTAL EXPENSE CAPITAL OUTLAY: Office equipment Motor vehicles Radio equipment TOTALS -46- Variance Favorable Budget Actual (Unfavorable) $359,243 $360,005 $ (762) 27,490 28,001 (511) 68,134 65,984 2,150 29,714 30,020 (306) 13,000 11,844 1,156 975 971 4 750 1,445 (695) 850 1,666 (816) 2,300 1,945 355 4,200 3,757 443 800 691 109 450 155 295 8,300 8,505 (205) 11,375 12,136 (761) 750 1,533 (783) 1,200 1,285 (85) 12,350 91212 3,138 2,400 1,101 1,299 5,900 6,291 (391) 9,000 8,505 495 8,600 9,656 (1,056) 900 1,096 (196) 350 406 (56) 14,200 17,825 (3,625) 3,630 - 3,630 15,500 15,360 140 4,710 4,112 598 $607,071 $603,507 $ 3,564 -46- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CEMETERY FOR THE YEAR ENDED JULY 31, 1995 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Legal Auditing Printing and publications Training Travel Dues Utilities Telephone Insurance Maintenance Miscellaneous SUPPLIES: Operating supplies Gas, Oil, Diesel Uniforms Small tools Sand, Gravel, Rock RENTAL EXPENSE CAPITAL OUTLAY: Office equipment Motorized equipment Paving TOTALS -47- Variance Favorable Budget Actual (Unfavorable) $44,240 $40,142 $ 4,098 3,385 2,913 472 6,862 6,988 (126) 1,050 1,421 (371) 75 11 64 70 61 9 130 175 (45) 460 60 400 30 13 17 75 65 10 2,200 2,214 (14) 425 454 (29) 1,520 1,404 116 4,800 4,210 590 - 505 (505) 690 1,205 (515) 1,800 1,776 24 160 112 48 175 943 (768) 700 504 196 11,900 12,300 (400) 350 - 350 14,200 5,550 8,650 4,200 2,794 1,406 $99,497 $85,820 $1.3,677 -47- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL FIRE DEPARTMENT FOR THE YEAR ENDED JULY 31 1995 OEM Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES $ 4,600 $ 4,238 $ 362 OPERATING EXPENSES: Utilities and telephone 16,400 9,747 6,653 Insurance 7,300 7,488 (188) Maintenance 8,100 7,497 603 Travel 100 - 100 Training 3,500 1,123 2,377 Miscellaneous 490 190 300 SUPPLIES: Gas and oil 1,700 1,579 121 Safety equipment 7,900 9,547 (1,647) Miscellaneous 2,175 1,415 760 HYDRANT RENTAL 12,000 - 12,000 CAPITAL OUTLAY: Specialized equipment 3,500 2,590 910 TOTALS $67,765 $45,414 $22,351 OEM CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL PARK DEPARTMENT FOR THE YEAR ENDED JULY 31, 1995 -49- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICE: Salaries $ 46,360 $ 39,786 $ 61574 Social security 3,550 3,212 338 Employees' insura ce 4,327 3,289 1,038 Retirement _ 1,000 42 958 OPERATING EXPENSES: Travel 100 - 100 Utilities and telephone 4,300 4,881 (581) Insurance 1,630 1,562 68 Maintenance 10,400 8,338 2,062 Miscellaneous 420 675 (255) SUPPLIES: Gas and oil 1,500 1,263 237 Small tools 200 260 (60) Miscellaneous 900 1,524 (624) CAPITAL OUTLAY: Boat ramp 20,000 21,630 (1,630) Motorized equipment 7,700 4,611 3,089 Playground equipment 3,000 3,476 (476) TOTALS $105,387 $ 94,549 $ 10,838 -49- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LIBRARY FOR THE YEAR ENDED JULY 31, 1995 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 2,100 31,440 1,400 $162,541 -50- 2,062 31,650 $141, 034 38 (210) 1,400 $21,507 Variance Favorable Budget Actual (Unfavorable) $ 74,220 $ 72,274 $ 1,946 5,675 5,690 (15) 10,506 10,202 304 3,500 3,659 (159) 300 306 (6) 450 418 32 300 310 (10) 250 163 87 9,700 6,958 2,742 700 501 199 200 18 182 700 23 677 1,300 1,123 177 17,600 3,570 14,030 2,200 2,107 93 2,100 31,440 1,400 $162,541 -50- 2,062 31,650 $141, 034 38 (210) 1,400 $21,507 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL SUPERVISED RECREATION FOR THE YEAR ENDED JULY 31, 1995 -51- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 9,195 $ 5,899 $ 3,296 Social security 700 537 163 Employees' insurance 615 497 118 OPERATING EXPENSES: Auditing 70 77 (7) Professional fees 800 - 800 Printing and publications 50 208 (158) Utilities 3,800 3,002 798 Telephone 100 326 (226) Insurance 1,650 2,185 (535) Maintenance 4,400 4,056 344 Little League and BYSA 6,000 6,000 - Golf, Basketball, and Wrestling 3,050 5,565 (2,515) SUPPLIES: Gas and oil 200 69 131 Recreation supplies 550 368 182 CAPITAL OUTLAY: Aluminum bleacher boards 4,500 - 4,500 Asphalt 15,000 11,069 3,931 TOTALS $50,680$39,858 $10,822 -51- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL SWIMMING POOL FOR THE YEAR ENDED JULY 31 1995 -52- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $25,523 $19,848 $5,675 Social security 1,950 1,818 132 Employees' insurance 670 673 (3) OPERATING EXPENSES: Auditing 210 230 (20) Printing and publications 620 633 (13) Utilities and telephone 3,900 4,609 (709) Insurance 850 831 19 Maintenance 7,000 9,239 (2,239) State sales tax 1,000 1,327 (327) Miscellaneous 50 - 50 SUPPLIES: Chemicals 3,600 3,032 568 Miscellaneous 2,215 1,952 263 TOTALS $47,588 $44,192 $3,396 -52- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LANDFILL FOR THE YEAR ENDED JULY 31, 1995 -53- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 3,000 $ 1,326 $ 1,674 Social security 230 99 131 Employees' insurance 1,730 - 1,730 Retirement - 4 - OPERATING EXPENSES: Auditing 150 153 (3) Printing and publication 50 68 ( 18) Professional consultants 3,000 - 3,000 Utilities and telephone 200 - 200 Insurance 800 707 93 Maintenance 100 - 100 SUPPLIES: Chemicals - - - Gas, diesel, and oil - - - Capital outlay 75,000 - 75,000 Contract Hauling 10,000 5,230 4,770 Miscellaneous 500 500 TOTALS $ 94,760 $ 7,583 $ 87,177 -53- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ANIMAL CONTROL FOR THE YEAR ENDED JULY 31, 1995 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERA'T'ING 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 -54- Variance Favorable Budget Actual (Unfavorable) $23,200 $21,523 $ 1,677 1,775 1,674 101 5,902 5,656 246 950 1,109 (159) 500 480 20 70 61 9 540 116 424 200 -0- 200 440 -0- 440 1,300 1,231 69 3,340 2,909 431 460 356 104 1,550 1,031 519 200 54 146 1,000 888 112 1,200 1,272 ( 72) 500 382 118 1,703 1,430 273 600 -0- 600 $45,430 $40,172 $ 5,258 EDWA RD W. SCHROEDER CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET BOX 486 BLAIR, NEBRASKA 68008 November 27, 1995 Honorable Mayor and Members of the City Council City of Blair, Nebraska Dear Gentlemen: RESIDENCE: (402) 468-5253 OFFICE: (402) 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, 1994 and 1995, and have issued my report thereon dated November 27, 1995. These general purpose financial statements are the responsibility of the City of Blair, Nebraska, management. My responsibility is to i express an opinion on these general purpose 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 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 r 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 material respects in relation to the general purpose financial statements taken as a whole. Z 9 Edward W. Schroeder Certified public Accountant -55- SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE CITY OF BLAIR FOR THE YEAR ENDED JULY 311 1995 PROGRAM TITLE CFDA NUMBER GRANT BALANCE REVENUE EXPENSE BALANCE GRANTORS NUMBER AMOUNT 7-31-94 RECOGNIZED INCURRED 7-31-95 Community Dev. Block Grant CFDA #14.228 #93 -ED -014 $505,000 $ - $476,171 $3,064,779 $ - Community Dev. Block Grant CFDA #14.228 #94 -ED -023 221,000 -- - - - Federal Aid in Sport Fish Restoration CFDA #15-605 #F-110-D(MA)-1 82,642 - 82,642 89,976 - ##F -110-D-2 7,358 - 7,358 21,630 - Bureau of Alcohol Tobacco and Firearms G.R.E.A.T. Program #94 -GT -02A 7,175 - 7,175 7,175 - ##94 -GT -02 11,118 - 11,118 11,118 - #95-6T-11 13,258 - 2,880 2,880 - U.S. Dept of Transportation CFDA #20.600 #95-604 950 - 417 417 - Bureau of Justice Assistance -Cops, Kids, and Crime #93 -DA -327 13,000 - 9,577 9,577 -- U.S. Dept of Justice Cops Fast CFDA #16.726 #95-CF-WX-5135 67,425 - - - Totals $928,926 $ - $597,338 $3,,207,552 S - -56- E EDWARD W. SCHROEDER CERTIFIED PUBLIC ACCOUNTANT f_. I 1904 SOUTH STREET BOX 486 BLAIR, NEBRASKA 68008 November 27, 1995 Honorable Mayer and Members the City Council City of Blair, Nebraska Gentlemen: RESIDENCE: (402) 468-5253 OFFICE: (402) 426-4080 I have audited the general purpose financial statements of the City of Blair, Nebraska, as of and of the years ended July 31, 1994 and 1995, and have issued my report thereon dated November 27, 1995. I conducted my audit 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 A-128. "Audits of State and Vocal 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. Edward W. Schroeder Certified Public Accountant -57- CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET BOA{ 486 BLAIR, NEBRASKA 68008 November 27, 1995 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RESIDENCE: (402) 468-5253 OFFICE: (402) 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, 1994 and 1995, and have issued my report thereon dated November 27, 1995. 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. -58- 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 E` Fund balance Accounting Applications Billings Receivables Cash receipts Purchasing and receiving F 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. -59- 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. Edward W. Schroeder Certified Public Accountant .M EDVVA RD W. SCHROEDER CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET BOX 486 G BLAIR, NEBRASKA 68008 November 27, 1995 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RESIDENCE: (402) 468-5253 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, 1994 and 1995, and have issued my report thereon dated November 27, 1995. In connection with my audit of the 1994 and 1995 general purpose financial statements of the City of Blair and with my consideration of the 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, 1994 and 1995. As required by OMB Circular A-128, I have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowable, 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 public record and its distribution is not limited. Edward W. Schroeder Certified Public Accountant -61- EDWARD W. SCHROEDER CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET BOX 486 November 27, 1995 BLAIR, NEBRASKA 68008 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RESIDENCE: (402) 468-5253 OFFICE: (402) 426-4.080 I have audited the financial statements of City of Blair, Nebraska, as of and for the year's ended July 31, 1994 and 1995, and have issued my report thereon dated November 27, 1995. I have also audited City of Blair, Nebraska, compliance with the requirements governing types of services allowed or unallowable; eligibility; matching, level of effort, or earmarking; reporting; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance, for the year ended July 31, 1995. The management of City of Blair, Nebraska, is responsible for the City of Blair, Nebraska's compliance with those requirements. My responsibility is to express an opinion on compliance with those requirements based on my audit. I conducted my audit of compliance with those requirements in accordance with generally accepted auditing standards; GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United States; and 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 material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about City of Blair, Nebraska's compliance with those requirements. I believe that my audit provides a reasonable basis for my opinion. The results of my audit procedures did not disclose any immaterial instances of noncompliance with the requirements referred to above. In our opinion, City of Blair, Nebraska, complied, in all material respects, with the requirements governing types of services allowed or unallowable; eligibility; matching, level of effort, or earmarking; reporting; special tests and provisions; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs for the year ended July 31, 1995. 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. Schroeder Certified Public Accountant -62- CERTIFIED PUBLIC ACCOUNTANT Y 1904 SOUTH STREET BOX 486 BLAIR, NEBRASKA 68008 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: November 27, 1995 RESIDENCE: (402) 468.5263 OFFICE: (402) 426-4080 I have audited the financial statements of the City of Blair, Blair, Nebraska, as of and for the years ended July 31, 1994 and 1995, and have issued my report thereon dated November 27, 1995. I have applied procedures to test the City of Blair's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended July 31, 1995: Political,activity Davis -Bacon Act Civil rights Cash management 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 B1air'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. Edward Schroeder Certified Public Accountant -63- CERTIFIED PUBLIC ACCOUNTANT r 1904 SOUTH STREET BOX 436 BLAIR, NEBRASKA 63003 November 27, 1995 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RESIDENCE: (402) 463-5253 OFFICE: (402) 426-4030 I have audited the general purpose financial statements of the City of Blair, Nebraska, for the years ended July 31, 1994 and 1995, and have issued my report thereon dated November 27, 1995. I have also audited the compliance of City of Blair, Nebraska with requirements applicable to major federal financial assistance programs and have issued our report thereon dated November 27, 1995. I conducted my audit in accordance with generally accepted auditing standards, GOVERNMENT AUDITING STANDARDS, issued by the (' Comptroller General of the United States, and Office of Management and Budget (OMB) Circular A--1.28, "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 and whether City of Blair, Nebraska, complied with laws and regulations, noncompliance with which would be material to a major federal financial assistance program. In planning and performing my audits for the year ended July 31., 1994 and 1995, I considered the internal control structure Of City of Blair, Nebraska, in order to determine my auditing Procedures for the purpose of expressing my opinion on the general purpose financial statements of City of Blair, Nebraska, and on the compliance of City of Blair, Nebraska, with requirements applicable to major programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses my consideration of internal control 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 27, 1995. The management of the City of Blair, Nebraska 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 x procedures. -64- 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 or disposition, 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 used in administering federal financial assistance programs 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 Claims for advances Cost allocation Other 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. -65- f Page 3 During the year ended ,July 31, 1995, the City of Blair expended 81% of its total federal financial assistance under major federal financial assistance programs. 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 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 each of City of Blair, Nebraska's major federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance. 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 regulations 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 also 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. f"Eed'w-�ard.Schroede Certified Public Accountant