FY1995 Financial Reports Sewer FundCITY OF BLAIR, NEBRASKA
SEWER FUND
JULY 31, 1995
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) 4685253
OFFICE:
(402) 426-4080
November 27, 1995
"Independent Auditor's Report"
I have audited the accompanying financial statements of
the Sewer Fund, City of Blair, Nebraska, as of and for the year
ended July 31, 1995. The financial statements are the
responsibility of the City of Blair, Nebraska management. 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. 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 discussed in Note B, the financial statements present only
the Sewer Fund and are not intended to present fairly the
financial position of the City of Blair, Nebraska, and the
results of its operations and the cash flows of its proprietary
fund types and expendable trust funds in conformity with
generally accepted accounting principles.
In my opinion, the financial statements referred to in the
first paragraph present fairly, in all material respects, the
financial position of the Sewer Fund of the City of Blair,
Nebraska, as of July 31, 1995, and the results of its operations
and its cash flows for the year then ended in conformity with
generally accepted accounting principles.
Edward W. Schroeder
Certified Public Accountant
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CITY OF BLAIR, NEBRASKA
SEWER FUND BALANCE SHEET
JULY 31, 1995
ASSETS
CURRENT ASSETS:
Cash $ 19,369
Accounts receivable - user fees 59,351
Accounts receivable - other 1,790
Investments 100,000
Prepaid expenses 2,546
Total current assets 183,056
PROPERTY:
Plant in service 3,613,897
Accumulated depreciation (11988,801)
Property - net 1,625,096
TOTAL ASSETS $1,808,152
LIABILITIES AND FUND BALANCE
CURRENT LIABILITIES:
Accounts payable $ 28,028
FUND BALANCE:
Contributed capital 2,770,834
Retained earnings:
Reserved -
Unreserved (990,710)
Total fund balance 1,780,124
TOTAL LIABILITIES
AND FUND BALANCE $1,808,152
See Notes to Financial Statements
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CITY OF BLAIR, NEBRASKA
SEWER FUND STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
FOR THE YEAR ENDED JULY 31, 1995
OPERATING REVENUES:
User fees
$ 341,390
Sale of merchandise
5,650
Total revenues
347,040
EXPENSES:
Personal services:
Salaries
120,615
FICA
9,546
Workman's compensation
4,083
H.A.L. insurance
20,253
Retirement (city share)
6,820
Unemployment and disability
634
Total
161,951
Operating expense:
Auditing
765
Consulting/engineering
15,865
Employee appreciation
171
Postage
3,271
Printing and publication
326
Computer programming
51
School, travel and training
1,293
Dues
1,230
Utilities
43,605
Telephone
736
Insurance
6,173
Maintenance
22,736
Car expense
180
Total
96,402
Materials and supplies
29,172
Rental expense
636
Total expenses
288,161
OPERATING INCOME (LOSS) BEFORE DEPRECIATION
58,879
DEPRECIATION
77,286
OPERATING INCOME (LOSS)
(18,407)
OTHER REVENUE (EXPENSE):
Interest income
4,572
Transfers - in
1,600
NET INCOME (LOSS) (12,235)
RETAINED EARNINGS (DEFICIT) (978,475)
JULY 31, 1994
RETAINED EARNINGS (DEFICIT)
JULY 31, 1995 $(990,710)
See Notes to Financial Statements
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CITY OF BLAIR, NEBRASKA
SEWER FUND STATEMENT OF CASH FLOW
FOR THE YEAR ENDED JULY 31 1995
CASH FLOW FROM OPERATIONS:
Net operating income (loss)
$(18,407)
Adjustment to reconcile net
income to net cash from operations:
Depreciation
77,286
Decrease (increase) in accounts
receivable - user fees
(3,134)
Decrease (increase) in accounts
receivable - other
(1,790)
Decrease (increase) in inventory
-
Decrease (increase) in prepaid
expenses
(431)
Increase (decrease) in accounts
payable
6,195
Net cash provided (used)
by operations
59,719
CASH FLOW FROM INVESTING:
Purchase of property (48,198)
Interest income 4,572
Transfers - net 1,600
Cash flow from (used in)
investing (42,026)
NET INCREASE (DECREASE) IN CASH 17,693
CASH AND CASH EQUIVALENTS
Beginning of the period 101,676
CASH AND CASH EQUIVALENTS
End of the period $119,369
See Notes to Financial Statements
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CITY OF BLAIR, NEBRASKA
SEWER FUND
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Blair accounts for its financial position and results
of operations in accordance with generally accepted accounting
principles applicable to governmental units. Accordingly, the City
uses several funds and account groups which are described below.
A. Fund Types and Account Groups:
A fund or account group is an accounting entity with a
self -balancing set of accounts established to record the
financial position and results of operations of a specific
governmental activity. The City maintains the
following fund types and account groups:
Governmental fund types, that include the General Fund,
Special Revenue Funds, and the Debt Service Fund, are used to
record the general operations of the City;
Proprietary fund types, that are used to account for
activities conducted on a fee for service basis in a manner
similar to commercial enterprises, provide services to the
public (enterprise funds);
Fiduciary fund types (trust and insurance funds), that are
used to account for assets held by the City as an agent for
private individuals or organizations or in trust;
General fixed assets 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. Reporting Entity:
Only the Sewer Fund activities have been included in these
financial statements, for the years ended July 31, 1995. The
statements are not intended to present the combined financial
position of the City of Blair. 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.
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:
The Sewer Fund is a proprietary fund type and all
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.
D. 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.
E. Compensated Absences:
The City of Blair does not record accrued compensated
absences as they are unmeasurable as of July 31, 1995.
1WZ
CITY OF BLAIR, NEBRASKA
NOTES TO FINANCIAL STATEMENTS, Continued
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Investments:
The Investments are bank Certificates of Deposit or
U.S. Government Securities with no unusual restrictions other
than penalty for early withdrawal. All unrestricted investments
are short-term. Investments are stated at cost, which
approximates market value. All investments are entirely insured
or collateralized with U.S. Government Securities and are
considered cash equivalents.
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. PENSION PLANS
The city has two pension plans covering substantially all
of its employees. Employees other than policemen are covered
by a defined contribution plan. All contributions up to 4% of
gross wage in employee contributions and 40 of gross wage in
contributions from the City are invested with an investment
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. Sewer Fund contributions for the fiscal
year ended July 31, 1995, were $9,904. Contributions are
expected to remain relatively level from year to year. The 1995
covered payroll and total payroll were $120,615 and $120,615
respectfully.
3. 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.
WO