FY2004 Audit Report CityEPTEMBER 30, 2004
CITY OF BLAIR, NEBRASKA
TABLE OF CONTENTS
Paqe
MANAGEMENT'S DISCUSSION AND ANALYSIS
1-13
INDEPENDENT AUDITORS' REPORT
14-15
STATEMENTS:
Statement of Net Assets
16
Statement of Activities
17
Balance Sheet — Governmental Funds
18
Governmental Funds — Reconciliation of the Balance
Sheet of Governmental Funds to the Statement of
Net Assets',
19
Statement of Revenues, Expenditures, and Changes
In Fund Balance — Governmental Funds
20-21
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds
22
Statement of Revenues, Expenditures, and Changes
In Fund Balance — Budget and Actual — General Fund
23
Statement of General Fund Revenues — Budget and Actual
24
Statement of General Fund Expenditures — Budget and
Actual —
Administration Department
25
Contingency Allowance
26
Police Department
27
Cemetery
28
Fire Department
29
Park Department
30
Library
31
Supervised Recreation
32
Swimming Pool
33
Zoning
34
Animal Control
35
Donated Funds
36
Statement of Revenues, Expenditures and Changes
In Fund Balance — Budget and Actual —
Debt Service Fund
37
Street Fund
38-39
Keno Fund
40
CITY OF BLAIR, NEBRASKA
TABLE OF CONTENTS
Page
Statement of Net Assets — Proprietary Funds
41-42
Combined Statement of Revenues, Expenses and
Changes in Net Fund Assets — Proprietary Fund Types
43
Statement of Revenues, Expenses and Changes in Net
Fund Assets — Budget and Actual —
Water Fund
44-45
Sewer Fund
46
Statement of Changes in Cash Flow — Water Fund and
Sewer Fund
47
NOTES TO FINANCIAL_ STATEMENTS
48-61
Internal Control and Compliance over Financial Reporting
62-63
Internal Control over Compliance for Major Programs
64-65
Schedule of Federal Awards
66-67
Schedule of Findings and Questioned Costs
68-69
CITY OF BLAIR, NEBRASKA .;
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2004
The discussion and analysis of the City of Blair's financial performance provides an overview
and analysis of the City's financial activities for the fiscal year ended September 30, 2004. It
should be read in conjunction with the accompanying basic financial statements. All amounts in
this discussion, unless otherwise indicted, are expressed in thousands of dollars. This
discussion and analysis does not include comparative data for prior years, as this information is
not available for the first year of implementation of Governmental Accounting Standards Board
(GASB) Statement Number 34. Future years will include, when available, comparative analysis
of government -wide data.
FINANCIAL HIGHLIGHTS
• The assets of the City of Blair exceeded it's liabilities at the close of the fiscal year ending
September 30, 2004 by $16.2 million (net assets). Of this amount, $5.5 million
(unrestricted net assets) may be used to meet the government's ongoing obligations to
citizens and creditors.
• The City of Blair's total net assets increased by $2.2 million for the year ended September
30, 2004. The increase in net assets can be attributed to sales tax revenue used to
purchase capital assets.
• As of September 30, 2004, the City of Blair's governmental funds reported combined
ending fund balances of $6.6 million, a decrease of $285,000 in comparison with the prior
fiscal year.
• While the total Debt Service fund balance declined $484,000 for the fiscal year ended
September 30, 2004, the fund balance for the General Fund increased $150,300 during
the same period.
• The City's total debt decreased by $751,000 during the current fiscal year. The City
issued $354,000 in Registered Warrants for construction projects in 2004 and retired $1,
million of general and revenue bond debt.
OVERVIEW OF FINANICAL STATEMENTS
The discussion and analysis serves as an introduction to the City of Blair's basic financial
statements. The City of Blair's basic financial statements are comprised of three components,
government -wide financial statements, fund financial statements, and notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2004
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City of Blair's finances, in a manner
similar to a private -sector business. The Statement of Net Assets presents information on all of
the City of Blair's assets and liabilities, with the difference between the two reported as net
assets. Over time, increases or decreases in net assets may serve as a useful indicator of
whether the financial position of the City of Blair is improving or deteriorating. The Statement of
Net Assets combines and consolidates governmental funds' current financial resources (short-
term spendable resources) with capital assets and long-term obligations. Other nonfinancial
factors should also be taken into consideration, such as changes in the City's property tax base
and the condition of the City's infrastructure (i.e. roads, drainage improvements, storm and
sewer lines, etc.), to assess the overall health or financial condition of the City. The Statement
of Activities presents information showing how expenses are taken into account regardless of
when cash is received or paid. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned by not used vacation leave). Both the Statement of Net assets and the Statement of
Activities are prepared utilizing the accrual basis of accounting as opposed to the modified
accrual basis used in prior reporting models.
In the Statement of Net Assets and the Statement of Activities, the City is divided into two kinds
of activities:
Governmental Activities — Most of the City's basis services are reported here, including the
police, cemetery, streets, fire, library, planning and development, parks and recreation,
and general administration. Property taxes, sales taxes and state allocations finance most
of these activities.
• Business type Activities _ The City charges a fee to customer to help it cover all or most of
the cost of certain services it provides. The City's water and sewer system are reported
here.
4
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2004
Reporting the City's Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds - not
the City as a whole. Some funds are required to be established by state laws and by bond
covenants. However, the City establishes many other funds to help it control and manage
money for particular purposes or to show that it is meeting legal responsibilities for using certain
taxes, grant and other money. The City's two kids of funds — governmental and proprietary; -
utilize different accounting approaches.
Governmental funds — The majority of the City's basic services are reported in
governmental funds, which focus on how money flows into and out of those funds and the
balances left at year-end that are available for spending. These funds are reported using
an accounting method identified as the modified accrual basis of accounting, which
measures cash and all other financial assets that can readily be converted into cash. The
governmental fund statements provide a detailed short-term view of the City's general
government operations and the basic services it provides. Governmental fund information
helps determine whether there are more or fewer financial resources that can be spent in
the near future to finance the City's programs. By comparing information presented for
governmental funds with similar information presented for governmental activities in the
government -wide statements, readers may better understand the long-term effect of the
government's near term financing decisions. The relationships of differences between
governmental activities (reported in the Statement of Net Assets and the Statement of
Activities) and governmental funds is detailed in a reconciliation. following the fund financial
statements.
The City of Blair maintains four individual governmental funds. Information is presented
separately in the Governmental Funds Balance Sheet and in the Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances for the General
Fund, Debt Service Fund, Street Fund and the Keno Fund all of which are considered to
be major funds.
• Proprietary funds — The City charges customers for the services it provides, whether to
outside customers or to other units within the City. These services are generally reported
in proprietary funds. Proprietary funds are reported in the same way that all activities are
reported in the Statement of Net Assets and the Statement of Activities. In fact, the City's
enterprise funds (a component of proprietary funds) are identical to the business type
activities that are reported in the government -wide statements but provide more detail and
additional information, such as cash flows, for proprietary funds.
• The City of Blair maintains two individual enterprise funds. The City uses enterprise funds
to account for its water and sewer. The funds provide the same type of information as the
government -wide financial statements, only in more detail and include some of the internal
service fund type activity. The proprietary fund financial statements provide separate
information for the water and sewer and sanitary landfill, both of which are considered to
be major funds in the City.
3
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2004
Notes to Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government -wide and fund financial statements. The notes to the financial
statements can be found immediately following the basic financial statements.
THE CITY AS A WHOLE — Government -wide Financial Analysis
The City's combined net assets were $16.2 million as of September 30, 2004. Analyzing the net
assets and net expenses of governmental and business -type activities separately, the business
type activities net assets were $7.6 million. This analysis focuses on the net assets (table 1)
and changes in general revenues (table 2) and significant expenses of the City's governmental
and business -type activities. An analysis of government -wide results will be provided in future
periods when prior -year information is available.
By far the largest portion of the City's net assets (51.4 percent) reflects its investment in capital
assets (e.g., land, infrastructure, buildings, machinery, and equipment), less any related debt
used to acquire those assets that is still outstanding. The City uses these capital assets to
provide services to citizens; consequently, these assets are not available for future spending.
Although the City's investment in its capital assets its reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since
the capital assets themselves cannot be used to liquidate these liabilities.
SEE TABLE 1
4
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2004
TABLE 1
SUMMARY OF NET ASSETS
(AMOUNTS EXPRESSED IN THOUSANDS)
Current and other assets
Capital assets
Total assets
Long term liabilities
Outstanding
Other liabilities
Total liabilities
NET ASSETS:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
TOTAL NET ASSETS
Governmental
Activities
$ 7,200
5,919
13,119
3,350
1,189
4,539
Business -type
Activities
$ 1,602
15,903
17,505
9,016
861
9,877
Total
Primary
$ 8,802
21,822
30,624
12,366
2,050
14,416
2,014 6,317 8,331
1,945 437 2,382
4,621 874 5,495
$ 8,580 $ 7,628 $ 16,208
5
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2004
Governmental Activities
r
'F The City's general revenues increased when compared to the prior year by 3.3 percent or
$172,000. The primary reason for this increase was due to increased sales tax revenue. The
assessed value of the property in the City increased by $30 million or 8 percent as compared to
the prior year while the City property tax rate of $0.34 per $100 assessed valuation remained
unchanged.
Governmental and Business type activities increased the City's net assets by 2.2 million. The
key elements of this increase are as follows:
SEE TABLE 2
0
„ CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2004
TABLE 2
CHANGES IN NET ASSETS
(AMOUNTS EXPRESSED IN WHOLE NUMBERS)
7
Governmental
Business -type
Activities
Activities
Total
REVENUES:
Program Revenues:
Charges for services
$ 303,896
$ 3,802,120
$ 4,106,016
Operating grants and contributions
208,321
5,710
214,031
Capital grants and contributions
182,726
0
182,726
General revenues:
Taxes
3,328,803
0
3,328,803
Interest income
297,838
26,742
324,580
Other
1,060,218
5,_113
1,065,331
Total revenues
5,38-1,802
3,839,685
9,221,487
EXPENSES:
Administration
644,578
0
644,578
Police
1,066,120
0
1,066,120
Cemetery
136,637
0
136,637
Fire
124,123
0
124,123
Parks
215,501
0
215,501
Library
212,112
0
212,112
Donated fund
39,246
0
39,246
Supervised recreation
48,292
0
48,292
Swimming pool
54,898
0
54,898
Zoning
68,416
0
68,416
Animal control
75,432
0
75,432
Streets
796,542
0
796,542
Keno
38,563
0
38,563
Interest expense
186,378
0
186,378
Water
0
2,721,115
2,721,115
Sewer
0
618,723
618,723
Total expense
3,706,838
3,339,838
7,046,676
Increase in net assets before transfers
1,674,964
499,847
2,174,811
Transfers
(262,737)
262,737
0
Increase in net assets
1,412,227
762,584
2,174,811
Net Assets, October 1
7,167,272_
6,865,518
14,032,790
Net Assets, September 30
$ 8,579,499
1 7,628,102
$ 16,207,601
7
w
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSIONAND ANALYSIS
SEPTEMBER 30, 2004
Governmental activities: Governmental activities increased the City's net assets by
$1,412,227.
Key elements of this increase are as follows:
• The increase is in part due to the City investing in capital assets at a rate that exceeded
the depreciation on the City's assets. The cost of the equipment and other assets are
depreciated over their estimated useful lives. Depreciation on the City's assets was
$1,198,198 less than the City's capital outlay expenditures for the year.
• The increase is also partially due to increased sales tax receipts.
• All governmental activities were financed in part by tax revenue. Administration and
cemetery were the most effective at covering their costs due to fees charged and
operating and capital grants and contributions.
A comparative financial analysis will be provided in future years when prior year information is
available.
Business -type Activities
Revenues of the City's business -like activities were $3.8 million for the fiscal year ending
September 30, 2004. Expenses for the City's business -like activities were $3.3 million for the
year, resulting in net revenues of $.5 million. The net revenues are the result of several factors,
including the following:
• The City's water system recorded charges for services of $3.1 million which exceeded
expenses of $2.7 million by $.4 million. The most significant expenses of the water fund
were $A million for the purchase of chemicals and $.6 million in salaries and benefits.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of the fiscal year 2004, the City has nearly $34.5 million invested in a broad range of
capital assets, including police and fire equipment, buildings, park facilities, and water and
sewer plants. (See Table 3 below.) This amount represents a net increase (including additions
and deductions) of $2.4 million or 7 percent over the prior fiscal year. Beginning October 1,
2003, the City began capitalizing general infrastructure assets and depreciating them over their
useful lives as required by GASB 34. The general infrastructure assets capitalized in 2004 were
$1.4 million.
SEE TABLE 3
CITY OF FLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2004
TABLE 3
Capital Assets
Balance Balance
Sept. 30, Sept. 30,
2003 Additions Dispositions 2004
GOVERNMENTAL -ACTIVITIES:
Land
$ 170,111
$ C $
0
$ 170,111
Buildings
5,362,562
82,314
0
5,444,876
Street infrastructure
0
1,351,603
0
1,351,603
Equipment
2,438,324
23,131
0
2,461,455
Total Governmental
7,970,997
1,457,048
0
9,428,045
BUSINESS -TYPE ACTIVITIES:
Water assets
19,688,426
760,442
0
20,448,868
Sewer assets
4,620,401
174,246
0
4,794,647
Total Business -type
24,308,827
934,688
0
25,243,515
TOTALS
$ 32,279,824
$ 2,391,736 $
0
$ 34,671,560
9
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2004
Debt
At year-end, the City had 4.3 million in General Obligation Bonds and register warrants
outstanding as compared to 4.5 million at the end of the prior fiscal year, a decrease of 4.5
percent as shown in table 4.
SEE TABLE 4
10
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2004
TABLE 4
OUTSTANDING DEBT
(AMOUNTS EXPRESSED IN THOUSANDS)
11
Balance
Balance
Sept. 30,
Sept. 30,
Description
2003
Additions
Deductions
2004
General Registered Warrants
$ 0
$ 354,068
$ 0
$ 354,068
General Obligation Bonds
4,465,000
0
560,000
3,905,000
Water Revenue Bonds
9,155,700
0
505,000
8,650,700
Sewer Revenue Bonds
975,000
0
40,000
935,000
TOTAL
$ 14,595,700
$ 354,068
$ 1,105,000
. $ 13,844,768
11
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2004
THE CITY'S FUNDS
At the close of the City's fiscal year on September 30, 2004, the governmental funds of the City
reported a combined fund balance of 2.2 million. This ending balance includes a reduction in
fund balance of .5 million in the City's Debt Service Fund. The primary reason for the Debt
Service Fund's reduction is the issuing of registered warrants to fund paving, water and sewer
improvement districts.
General Fund Budgetary Highlights
Pool Expense
i Debt Service Other Revenues
5
Streets operating expenses
Water Revenues
(7,792) Maintenance of pool and pool
improvements exceeded budget.
(62,000) Did not generate the sale of lots in
Ridgeview as expected.
(56,952) Over budget due to snow removal
costs greater than budgeted and
overtime due to snow removal, May hail
and July wind storms.
286,050 Receipts greater than projected due to
higher than projected bulk sales.
12
Variance
Positive
Account
L,Ne ative
Reason
Franchise Tax
22,978
Franchise fees higher than projected.
Business license and permits
26,948
Higher than usual number of building
permits due to May hail storm.
Federal Grants
(446,875)
City projected to receive a $500,000
pass through grants which it did not
receive in 2004.
Storm Damage
(97,678)
Costs due to May & July 2004 storm
Damage, tree removal, etc.
Pool Expense
i Debt Service Other Revenues
5
Streets operating expenses
Water Revenues
(7,792) Maintenance of pool and pool
improvements exceeded budget.
(62,000) Did not generate the sale of lots in
Ridgeview as expected.
(56,952) Over budget due to snow removal
costs greater than budgeted and
overtime due to snow removal, May hail
and July wind storms.
286,050 Receipts greater than projected due to
higher than projected bulk sales.
12
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2004
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Current economic conditions point towards a continued growth in the community that will allow
for a stable budget environment.
The property tax rate for fiscal year 04/05 was increased 5%, which was the first increase in
eight years. The increase was to stabilize necessary cash reserves that had been challenged
due to unexpectedly high expenses caused by the heavy snow falls in December 2003, January
and February 2004, May 2004 hail storm, and the July 2004 wind storm.
Continued future stability of the city property tax rate beyond fiscal year 2005 will be dependent
upon a favorable vote to extend the City's sales tax for street improvements, public safety,
economic development, payment of debt service, and general property tax relief.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors
and creditors with a general overview of the City's finances and to show the City's accountability
for the money it receives. If you have questions about this report or need additional financial
information, contact the City of Blair, 218 S. 16th Street, Blair, NE 68008.
13
EDWARD W SCHROEDER
CERTIFIED PUPLIC ACCOUNTANT
1904 SOUTH STREET
BOX 486
BLAIR, NEBRASKA 68008
Honorable Mayor and Members
of the City Council
City of Blair, Nebraska
Gentlemen:
December 5, 2004
"Independent Auditor's Report"
OFFICE:
(402)426-4080
FAX:
(402)426-9340
I have audited the accompanying financial statements of the governmental activities, the
business -type activities, and each major fund, as of and for the year ended September 30,
2004, which collectively comprise the City's basic financial statements as listed in the table
of contents. These financial statements are the responsibility of the City of Blair's
management. My responsibility is to express opinions on these financial statements based
on my audit.
I conducted my audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
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 the
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
opinions.
In my opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business -type
activities, and each major fund of the City of Blair, Nebraska as of September 30, 2004, and
the respective changes in financial position and cash flows where applicable, thereof and
the respective budgetary comparisons for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards; I have also issued my report dated
December 30, 2004, on my consideration of the City of Blair's internal control over financial
reporting and on my tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements and other matters. The purpose of that report is to
describe the scope of my testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing
the results of my audit.
14
Mayor and Members of
the City Council
December 19, 2004
Page 2
The management's discussion and analysis are not a required part of the basic financial
statements but are supplementary information required by accounting principles generally
accepted in the United States of America. I have applied certain limited procedures, which
f consisted principally of inquiries of management regarding the methods of measurement
and presentation of the required supplementary information. However, I did not audit the
information and express no opinion on it.
My audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Blair's, basic financial statements. The accompanying
schedule of expenditures of federal awards is presented for purposes of additional analysis
as required by U.S. Office of Management and Budget Circular A-133, Audits of States,
Local Governments and Non -Profit Organizations, and is also not a required part of the
basic financial statements of the City of Blair. The schedule of expenditures of federal
awards has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in my opinion, is fairly stated in all material respects, in relation to
the basic financial statements taken as a whole.
Edward W. Schroeder
Certified Public Accountant
15
CITY OF SLAIR, NEBRASKA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2004
ASSETS
Cash and Equivalents
Accounts receivable
Due from County Treasurer
Special Assessments receivable
Accrued interest receivable
Prepaid expense
Contract receivable
Capital Assets:
Land
Street infrastructure
Buildings
Equipment
Accumulated depreciation
Restricted cash
Total Assets
LIABILITIES
Current Portion of long-term debt
Accounts payable
Accrued expenses
Accrued interest
Deposits
Registered warrants
Bonds payable - more than one year
Total liabilities
NET ASSETS
Investment in capital assets net of
related debt
Restricted for donated projects
Restricted for grant projects
Restricted for debt service
Restricted for community betterment
Unrestricted
Total Net Assets
Governmental
Activities
$ 1,242,927 $
351,186
132,200
1,929,368
139,146
0
3,092,124
Business -
Type
Activities
490,976
666,048
0
0
4,120
4,286
0
'170,111
2-15,082
1,351,603
0
5,444,876
23,324,046
2,461,455
1,704,387
(3,508,952)
(9,341,022)
312,665
437,160
13,118, 709
17, 505, 083
555,000 570,000
251,497 150,472
11,845 8,436
. 0 130,673
16,800 1,700
354,068 0
3,350,000 9,015,700
3,984,210 9,876,981
2,014,093
6,316,793
122,846
0
101,357
0
1,588,91'7
437,160
131,055
0
4,621,231
874,149
$ 8,579,499 $
7,628,102
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CITY OF BLAIR, NEBRASKA
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2004
LIABILITIES
Accounts payable 208,062 - 39,033 4,402 251,497
Accrued expenses 8,585 - 3,260 - 11,845
Deposits payable 16,800 - - - 16,800
Registered warrants - 354,068 - - 354,068
TOTAL LIABILITIES 233,447 354,068 42,293 4,402 634,210
FUND BALANCES
Reserved for:
Donated funds
122,846 -
Debt
Grant funds
101,357 -
- - 101,357
ASSETS
General
Service
Street
Keno
- 131,055 131,055
Unreserved designated
Fund
Fund
Fund
Fund
Total
Cash and Equivalents
$ 1,239,887
$
$ 3,040
$ -
$ 1,242,927
Receivables
4,865,630 1,588,917
(20,196) 131,055 6,565,406
TOTAL LIABILITIES AND
Special assessments
-
1,929,368
-
-
1,929,368
Accrued interest
139,146
-
-
-
139,146
Other
345,153
-
-
6,033
351,186
Due from County Treasurer
107,246
5,897
19,057
-
132,200
Reserved assets - cash
and investments - at cost
175,521
7,720
-
129,424
312,665
Contract receivable - OPPD
3,092,124
-
-
-
3,092,124
TOTAL ASSETS
5,099,077
1,942,985
22,09.7
135,457
7,199,616
LIABILITIES
Accounts payable 208,062 - 39,033 4,402 251,497
Accrued expenses 8,585 - 3,260 - 11,845
Deposits payable 16,800 - - - 16,800
Registered warrants - 354,068 - - 354,068
TOTAL LIABILITIES 233,447 354,068 42,293 4,402 634,210
FUND BALANCES
Reserved for:
Donated funds
122,846 -
- - 122,846
Grant funds
101,357 -
- - 101,357
Debt Service
- 1,588,917
- - 1,588,917
Community betterment
- -
- 131,055 131,055
Unreserved designated
1,065,210 -
- - 1,065,210
Unreserved undesignated:
General funds
3,576,217 -
- - 3,576,217
Special revenue funds
- -
(20,196) - (20,196)
TOTAL FUND BALANCES
4,865,630 1,588,917
(20,196) 131,055 6,565,406
TOTAL LIABILITIES AND
FUND EQUITY
$ 5,099,077 $ 1,942,985
$ 22,097 $ 135,457 $ 7,199,616
See Notes to Financial Statements
18
CITY OF FLAIR, NEBRASKA
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2004
Fund Balances of Governmental Funds
Amounts reported for governmental activities in the Statement
of Net Assets are difference because:
Capital assets, net of depreciation, are not current financial
resources and are not included in the governmental funds.
Bonds payable are not a current financial resource. Therefore,
they are not included in the governmental funds.
Net Assets of Governmental Activities
See Notes to Financial Statements
19
$ 6,565,406
5,919,093
(3,905,000)
$ 8,579,499
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Debt
General Service Street Keno
Fund
REVENUES:
Total
Governmental
Funds
Taxes
$ 2,996,092
$ 61,272
$ 230,042 $
-
$ 3,287,406
Street revenues
-
-
681,033
-
681,033
Keno proceeds
-
-
-
82,225
82,225
Charges for services
221,671
-
-
-
221,671
Special assessment
-
379,664
-
-
379,664
Special assessment interest
-
62,772
-
-
62,772
Interest income
297,014
628
62
134
297,838
Other revenues
356,589
8,000
-
-
364,589
Total revenues
3,871,366
512,336
9-1-1,13-7
82,359
5,377,198
EXPENDITURES:
Administration
600,988
4,280
-
-
605,268
Contingency allowance
-
-
-
-
0
Police Department
1,044,185
-
-
-
1,044,185
Cemetery
133,164
-
-
-
133,164
Fire Department
79,756
-
-
-
79,756
Parks Department
200,752
-
-
-
200,752
Library
205,834
-
-
-
205,834
Supervised recreation
43,564
-
-
-
43,564
Swimming pool
34,092
-
-
-
34,092
Zoning
68,416
-
-
-
68,416
Animal control
64,344
-
-
-
64,344
Donated funds
101,560
-
-
-
101,560
Keno expense
-
-
-
14,459
14,459
Community betterment
-
-
-
19,500
19,500
Street expense
-
-
746,602
-
746,602
Street improvement
-
-
1,351,602
-
1,351,602
Debt service:
Bonding costs - 956 - - 956
Redemption of bonds - 560,000 - - 560,000
Bond interest - 186,378 - - 186,378
Total expenditures 2,576,655 751,614 2,098,204 33,959 5,460,432
REVENUES OVER (UNDER)
EXPENDITURES $ 1,294,711
-continued-
$ (239,278) $ (1,187,067) $ 48,400 $ (83,234)
See Notes to Financial Statements
20
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2004
-continued-
Debt
General Service
Fund Fund
REVENUES OVER (UNDER)
EXPENDITURES
$ 1,294,711
$ (239,278)
OTHER FINANCING
SOURCES (USES):
Bond proceeds
-
-
Sale of assets
-
-
Operating transfers - in
176,000
109,247
Operating transfers - out
(1,329,414)
(354,068)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND
OTHER USES
150,297
(484,099)
FUND BALANCE
Total
Street Keno Governmental
Fund Fund Funds
$ (1,187,067) $ 48,400 $ (83,234)
0
0
1,187,498 - 1,472,745
- (61,000) (1,735,482)
431 (12,600) (345,971)
September 30, 2003 4,715,333 2,073,016 (20,627) 143,655 6,911,377
FUND BALANCE
September 30, 2004 $ 4,865,630 $ 1,588,917 $ (20,196) $ 131,055 $ 6,565,406
a.
See Notes to Financial Statements
21
CITY OF BLAIR, NEBRASKA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Net Change in Fund Balance - Total Governmental Funds
Amounts reported for governmental activities in the Statement
of Activities differ from the amounts reported in the Statement
of Revenues, Expenditures, and Changes in Fund Balances because:
Governmental funds report capital outlays as expenditures.
However, in the Statement of Activities, the costs of those
assets is allocated over their estimated useful lives as
depreciation expense or are allocated to the appropriate
functional expense when the cost is below the capitalization
threshold. This activity is reconciled as follows:
Cost of assets capitalized
Depreciation expense
Gain/loss on assets
Bonds payable are reported as expenditures when made
and as revenue when repaid in the governmental funds.
However, there is no impact in the Statement of Activities
when loans are made or repaid. This amount represents
the change in the long-term loans receivable.
Change in Net Assets of Governmental Activities
See Notes to Financial Statements
22
$ (345,971)
1,457,048
(258,850)
0
560,000
$ 1,412,227
CITY OF FLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERALFUND
FOR THE YEAR ENDED SEPTEMBER 30 2004
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES:
Taxes
$ 2,820,457
$ 2,996,092
$ 175,635
Charges for services
193,300
221,671
28,371
Interest income
305,755
297,014
(8,741)
Other revenues
616,700
356,589
(260,111)
Total revenues
3,936,212
3;871,366
(64,846)
EXPENDITURES:
Administration
985,707
600,988
384,719
Contingency allowance
30,000
0
30,000
Police Department
1,096,654
1,044,185
52,469
Cemetery
140,458
133,164
7,294
Fire Department
76,160
79,756
(3,596)
Parks Department
167,510
200,752
(33,242)
Library
222,290
205,834
16,456
Supervised recreation
55,580
43,564
12,016
Swimming pool
26,300
34,092
(7,792)
Zoning
76,571
68,416
8,155
Animal control
77,303
64,344
12,959
Donated funds
33,808
101,560
(67,752)
: Total expenditures
2,988,341
2,576,655
411,686
REVENUES OVER (UNDER)
EXPENDITURES
$ 947,871
$ 1,294,711
$ 346,840
OTHER FINANCING SOURCES (USES):
Bond proceeds
0
0
0
Operating transfers - in
150,000
176,000
26,000
Operating transfers - out
(1,368,994)
(1,320,414)
48,580
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER SOURCES
(271,123)
150,297
$ 421,420
FUND BALANCE - September 30, 2003
4,715,333
4,715,333
FUND BALANCE - September 30, 2004
$ 4,444,210
$ 4,865,630
See Notes to Financial Statements
23
I
CITY OF FLAIR, NEBRASKA
STATEMENT OF GENERAL FUND REVENUES
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES:
Taxes:
Property tax
$ 911,717 $
891,521
$ (20,196)
Motor vehicle tax
102,000
164,536
62,536
Sales tax
1,477,500
1,555,082
77,582
Occupation tax
42,000
39,864
(2,136)
Other taxes
60,400
95,307
34,907
State aid
66,840
66,804
(36)
Franchise tax
160,000
182,978
22,978
Total
2,820,457
2,996,092
175,635
Charges for services:
Business licenses and permits
106,950
133,898
26,948
Library
12,000
13,711
1,711
Equipment rental
2,500
1,960
(540)
Cemetery lots
13,000
24,300
11,300
Grave openings
23,000
24,100
1,100
Swimming pool fees
0
0
0
Other fees and charges
6,550
2,594
(3,956)
Sales of fireworks
25,000
15,000
(10,000)
RV park
4,300
6,108
1,808
Total
193,300
221,671
28,371
INTEREST INCOME
305,755
297,014
(8,741)
OTHER REVENUES:
State aid -library
1,600
1,406
(194)
State grants
19,000
1,723
(17,277)
Federal grants
510,100
63,225
(446,875)
Donations
7,500
201,122
193,622
Reimbursements
73,000
87,265
14,265
Sale of assets
0
0
0
Other miscellaneous revenue
5,500
1,848
(3,652)
Total
616,700
356,589
(260,111)
TOTAL REVENUES
$ 3,936,212 $
3,871,366
$ (64,846)
See Notes to Financial Statements
L
24
RENTALEXPENGE8:
Office equipment
CAPITAL OUTLAY:
Office equipment
TOTALS
Variance
Favorable
(Unfavorable)
$ 7`238
1.107
4.016
(2.920
(8O1)
800
(3O.7O0
O
600
(2.Q04)
(83) 2`524
(5.888
600
042\
310
(5O0
(2.521)
90
6,980
(3,510
(1S.483)
3.543
O
(1jU3)
(1D6)
26,431
650
(97,878)
495,000
1,500 2`793 U.293
6500 8 5600
Soo Notes to Financial Statements
25
CITY OF BLAIR, NEBRASKA
K
STATEMENT OFGENERAL FUND EXPENDITURES
/
BUDGET AND ACTUAL ' ADMINISTRATION DEPARTMENT
_
Budget
Actual
� PERSONAL SERVICES:
�
8a\ohno
$ 133.000 $
125.762
Social Security
10.300
9.103
Employee's insurance
87.620
62.705
� Retirement
4,200
4'990
- OPERATING EXPENSES:
0 Legal
21.600
24.529
Auditing
1.200
1.801
` Civil defense
800
O
� Consulting
�.
25.000
55.798
Custodial services
4.800
4.800
Employee appreciation
800
O
� Postage
3,600
6.594
Printing and publications
7`000
7'083
Training
7.500
4.076
^ Dues
0.600
15.405
X Election expenses
000
O
Programming
5.800
6'142
` City uU|diao
6,000
5,680
0 Telephone
8.800
7.380
Travel expense
8.000
8.621
Insurance and bonds
8.000
8.810
U Newsletter/brochures
10.000
3.020
K8ain\oOaOne
7`800
11`310
, Tree removal
16.000
31.483
City cleanup
12.000
8.457
Chamber ofCommerce
1.500
1,500
. Car expense
4.920
8.023
�County Treasurer's fees
9.117
8'303
Collection fees
75.000
48.560
K8i000Uannnus
GSO
O
` Storm damage
D
07,878
� . Grants awarded
500.000
6.000
SUPPLIES
10,800
15.763
RENTALEXPENGE8:
Office equipment
CAPITAL OUTLAY:
Office equipment
TOTALS
Variance
Favorable
(Unfavorable)
$ 7`238
1.107
4.016
(2.920
(8O1)
800
(3O.7O0
O
600
(2.Q04)
(83) 2`524
(5.888
600
042\
310
(5O0
(2.521)
90
6,980
(3,510
(1S.483)
3.543
O
(1jU3)
(1D6)
26,431
650
(97,878)
495,000
1,500 2`793 U.293
6500 8 5600
Soo Notes to Financial Statements
25
CONTINGENT RESERVE
TOTAL
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
CONTINGENCY ALLOWANCE
FOR THE YEAR ENDED SEPTEMBER 30 2004
Budget
$ 30,000
$ 30,000
Actual
$ 0
$ 0
See Notes to Financial Statements
26
Variance
Favorable
(Unfavorable)
$ 30,000
$ 30,000
See Notes to Financial Statements
27
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
POLICE DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30,
2004
Variance.
Favorable
Budget
Actual
(Unfavorable)
PERSONAL SERVICES:
Salaries
$ 668,608 $
639,854
$ 28,754
Social Security
49,750
46,905
2,845
Employee's insurance
178,076
162,302
15,774
Retirement
40,120
36,139
3,981
OPERATING EXPENSES:
Legal
4,800
3,735
1,065
Auditing
1,200
1,247
(47)
Employee appreciation
800
360
440
Postage
750
864
(114)
Printing and publications
2,500
1,212
1,288
Programming
4,000
1,666
2,334
Drug task force
7,000
6,51.0
490
Training
2,000
1,205
795
Telephone
6,600
7,086
(486)
Travel
2,000
957
1,043
Utilities
10,500
9,197
1,303
Custodial
3,900
3,000
900
Dues
400
260
140
Insurance
11,350
15,161
(3,811)
MAPA testing
1,500
1,009
491
Maintenance
23,900
23,656
244
Medical exams
1,800
2,166
(366)
Car expense
1,200
339
861
Wellness program
1,200
1,100
100
Miscellaneous
1,050
1,066
(16)
SUPPLIES:
Dog support
0
10,141
(10,141)
Supplies
16,850
14,406
2,444
.Gas and oil
12,000
12,816
(816)
Uniforms
12,000
12,809
(809)
Ammunition and range
1,500
1,498
2
Safety Equipment/Training
2,300
2,037
263
RENTAL EXPENSES -
500
350
150
CAPITAL OUTLAY:
Office equipment
5,000
0
5,000
Motor vehicles
21,500
23,132
(1,632)
TOTALS
$ 1,096,654 $ 1,044,185
$ 52,469
See Notes to Financial Statements
27
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
CEMETERY
FOR THE YEAR ENDED SEPTEMBER 30, 2004
See Notes to Financial Statements
28
Variance
Favorable
Budget
Actual
(Unfavorable)
PERSONAL SERVICES:
Salaries
$ 58,843
$ 58,227
$ 616
Social Security
4,500
4,321
179
Employee's insurance
18,715
17,737
978
Retirement
2,380
2,969
(589)
OPERATING EXPENSES:
Legal
805
780
25
Auditing
150
139
11
Engineering
300
110
190
Employee appreciation
100
0
100
Printing and publications
240
102
138
Programming
800
0
800
Training
350
200
150
Travel
75
20
55
Dues
100
80
20
Utilities
2,600
2,222
378
Telephone
1,200
972
228
Insurance
1,800
1,170
630
Maintenance
5,000
5,547
(547)
Contract mowing
22,000
20,436
1,564
Miscellaneous
730
882
(152)
SUPPLIES
Operating supplies
1,070
968
102
Gas and oil
1,000
762
238
Uniforms
500
497
3
Small tools
300
723
(423)
Sand, gravel and rock
400
0
400
RENTAL EXPENSES -
16,000
14,300
1,700
CAPITAL OUTLAY
Equipment
500
0
500
TOTALS
$ 140,458
$ 133,164
$ 7,294
See Notes to Financial Statements
28
OPERATING EXPENSES
Legal
Auditing
Printing and publications
Telephone
Utilities
Insurance
Maintenance
Travel
Training
Miscellaneous
SUPPLIES
Operating supplies
Gas and oil
Safety equipment
Miscellaneous
CAPITAL OUTLAY
Equipment
TOTALS
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
FIRE DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2004
See Notes to Financial Statements
29
Variance
Favorable
Budget
Actual
(Unfavorable)
$ 800
$ 780
$ 20
240
277
(37)
120
0
120
4,500
3,191
1,309
21,000
22,884
(1,884)
19,350
19,726
(376)
14,400
12,685
1,715
50
237
(187)
2,2.00
779
1,421
100
96
4
7,800
11,281
(3,481)
1,600
1,634
(34)
4,000
6,186
(2,186)
0
0
0
0
0
0
$ 76,160
$ 79,756
$___j3,596)
See Notes to Financial Statements
29
PERSONAL SERVICES:
Salaries
Social Security
Employee's insurance
Retirement
OPERATING EXPENSES:
Legal
Auditing
Employee appreciation
Printing and publications
Training
Dues
Travel
Utilities
Telephone
Insurance
Maintenance
Contract mowing
Miscellaneous
SUPPLIES
Operating supplies
Gas and oil
Small tools
Playground equipment
Miscellaneous
CAPITAL OUTLAY
Other improvements
Equipment
TOTALS
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
PARK DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30 2004
0
0
$ 167,510
20,000
0
$ 200,752
See Notes to Financial Statements
30
(20, 000)
$ (33,242)
Variance
Favorable
Budget
Actual
(Unfavorable)
$ 76,080
$ 72,969
$ 3,111
5,820
5,449
371
17,920
16,843
1,077
2,600
2,969
(369)
800
1'80
20
120
139
(19)
100
0
100
420
232
188
500
200
300
200
70
130
100
131
(31)
5,800
5,845
(45)
1,100
1,287
(187)
2,400
2,239
161
17,900
26,715
(8,815)
24,500
32,417
(7,917)
200
80
120
3,150
3,397
(247)
1,800
2,511
(711)
1,000
911
89
5,000
5,568
(568)
0
0
0
0
0
$ 167,510
20,000
0
$ 200,752
See Notes to Financial Statements
30
(20, 000)
$ (33,242)
PERSONAL SERVICES:
Salaries
Social Security
Employee's insurance
Retirement
OPERATING EXPENSES:
Legal
Auditing
Employee appreciation
Postage
Dues
Printing and publications
Utilities
Telephone
Travel
Training
Insurance
Maintenance
Custodial services
SUPPLIES
Supplies
Library materials
CAPITAL OUTLAY
Office equipment
TOTALS
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
LIBRARY
FOR THE YEAR ENDED SEPTEMBER 30, 2004
See Notes to Financial Statements
31
Variance
Favorable
Budget
Actual
(Unfavorable)
$ 103,890
$ 101,084
$ 2,806
7,800
7,635
165
24,970
18,673
6,297
4,780
5,677
(897)
800
780
20
400
416
(16)
500
25
475
800
742
58
400
265
135
500
67
433
10,000
10,220
(220)
2,000
1,094
906
650
376
274
500
272
228
2,600
2,666
(66)
8,600
9,863
(1,263)
2,800
2,695
105
9,400
4,762
4,638
40,900
38,522
2,378
0
0
0
$ 222,290
$ 205,834
$ 16,456
See Notes to Financial Statements
31
OPERATING EXPENSES:
Auditing
Dues
Professional fees
Printing and publications
Utilities
Telephone
Insurance
Maintenance
Recreational support
Fireworks
Contract mowing
SUPPLIES
Gas and oil
Recreation supplies
Other supplies
CAPITAL OUTLAY
Equipment
TOTALS
CITY OF BLAIR, NEBRASKA -
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
SUPERVISED RECREATION
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Budget
120
0
0
40
4,700
400
2,270
10,000
16,500
6,000
3,000
450
1,400
700
10,000
$ 55,580
E
139
0
0
0
5,422
548
4,630
8,573
15,000
5,500
1,620
452
1,229
451
$ 43,564
See Notes to Financial Statements
32
Variance
Favorable
(Unfavorable)
(19)
0
0
40
(722)
(148)
(2,360)
1,427
1,500
500
1,380
(2)
171
249
10,000
$ 12,016
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
SWIMMING POOL
FOR THE YEAR ENDED SEPTEMBER 30, 2004
See Notes to Financial Statements
33
Variance
Favorable
Budget
Actual
(Unfavorable)
OPERATING EXPENSES:
Auditing
$ 100
$ 277
$ (177)
Consulting
0
0
0
Printing and publications
0
0
0
Utilities and telephone
4,000
4,429
(429)
Insurance
1,700
1,875
(175)
Maintenance
12,500
24,342
(11,842)
State sales tax
0
0
0
Miscellaneous
100
3
97
SUPPLIES
Chemicals
7,500
3,152
4,348
Miscellaneous
400
14
386
CAPITAL OUTLAY
0
0
0
TOTALS
$ 26,300
$ 34,092
$
See Notes to Financial Statements
33
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
ZONING .
FOR THE YEAR ENDED SEPTEMBER 30, 2004
See Notes to Financial Statements
34
Variance
Favorable
Budget
Actual
(Unfavorable)
PERSONAL SERVICES:
Salaries
$ 48,043
$ 44,381
$ 3,662
Social Security
3,680
3,395
285
Employee's insurance
9,598
8,057
1,541
Retirement
2,450
2,734
(284)
OPERATING EXPENSES:
Legal
1,400
780
620
Auditing
100
139
(39)
Employee appreciation
100
0
100
Printing and publications
1,700
562
1,138
Travel
800
233
567
Training
1,000
744
256
Dues
400
425
(25)
Telephone
900
741
159
Car expense
3,600
3,892
(292)
Maintenance
0
0
0
Miscellaneous
0
170
(170)
SUPPLIES
Office supplies
800
1,207
(407)
Books and maps
2,000
956
1,044
CAPITAL OUTLAY
Equipment
0
0
0
TOTALS
$ 76,571
$ 68,416
$ 8,155
See Notes to Financial Statements
34
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
ANIMAL CONTROL
FOR THE YEAR ENDED SEPTEMBER 30
2004
Variance
Favorable
Budget
Actual
(Unfavorable)
PERSONAL SERVICES:
Salaries
$ 41,803 $
33,931
$ 7,872
Social Security
3,200
2,490
710
Employee's insurance
13,620
13,058
562
Retirement
1,800
2,134
(334)
OPERATING EXPENSES:
Legal
900
780
120
Auditing
120
139
(19)
Engineering
0
0
0
Employee appreciation
100
0
100
Postage
140
219
(79)
Dues
50
150
(100)
Contract mowing
400
90
310
Printing and publications
350
0
350
Travel
100
0
100
u
r
Training
200
0
200
Utilities
3,000
4,545
(1,545)
Telephone
1,200
1,345
(145)
Insurance
800
663
137
Maintenance
1,070
107
963
Miscellaneous
200
0
200
SUPPLIES.
Gas and oil
1,200
1,018
182
Supplies
6,050
3,035
3,015
Uniforms
1,000
640
360
Miscellaneous
0
0
0
CAPITAL OUTLAY
Equipment
0
0
0
Y.
TOTALS
$ 77,303 $
64,344
$ 12,959
r
See Notes to Financial Statements
r
35
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
DONATED FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2004
See Notes to Financial Statements
36
Variance
Favorable
Budget
Actual
(Unfavorable)
Library
$ 19,661
$ 234
$ 19,427
Park
300
0
300
Police
3,972
545
3,427
Employee uniforms
0
1,031
(1,031)
Employee appreciation
3,343
2,411
932
Animal control shelter
6,532
0
6,532
Vets tribute plaza
0
35,025
(35,025)
CAPITAL OUTLAY
Skateboard park
0
62,314
(62,314)
TOTAL
$ 33,808
$ 101,560
$ (67,752)
See Notes to Financial Statements
36
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2004
See Notes to Financial Statements
37
Variance
Favorable
(Unfavorable)
$ (3,835)
(4,247)
156,664
6,772
(10,000)
(4,372)
(62,000)
78,982
1,314
9,044
(25, 000)
(35, 913)
(50,555)
$ 28,427
(10,000)
77,247
(354, 068)
$ (258,394)
Budget
Actual
REVENUES:
Property taxes
$ 59,394
$ 55,559
Other taxes
9,960
5,713
Special assessments
223,000
379,664
Special assessment interest
56,000
62,772
Developers down payment
10,000
0
Interest income
5,000
628
Other revenues
70,000
8,000
Total revenues
433,354
512,336
EXPENDITURES:
Administration
5,594
4,280
Bonding costs
10,000
956
Redemption of bonds
535,000
560,000
Bond interest
150,465
186,378
Total expenditures
701,059
751,614
REVENUES OVER (UNDER)
EXPENDITURES
$ (267,705)
$ (239,278)
OTHER FINANCING SOURCES (USES):
Bond proceeds
10,000
0
Operating transfers - in
32,000
109,247
Operating transfers - out
0
(354,068)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER SOURCES
(225,705)
(484,099) -
FUND BALANCE - September 30, 2003
2,073,016
2,073,016
FUND BALANCE - September 30, 2004
$ 1,847,311
$ 1,588,917
See Notes to Financial Statements
37
Variance
Favorable
(Unfavorable)
$ (3,835)
(4,247)
156,664
6,772
(10,000)
(4,372)
(62,000)
78,982
1,314
9,044
(25, 000)
(35, 913)
(50,555)
$ 28,427
(10,000)
77,247
(354, 068)
$ (258,394)
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - STREET FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2004
Var. Favorable
Budget
Actual
(Unfavorable)
REVENUES:
Highway allocation
$ 516,252
$ 499,463
$ (16,789)
Property taxes
190,000
182,229
(7,771)
Other taxes
76,700
47,813
(28,887)
Incentive payment
3,000
3,000
0
State maintenance agreement
21,700
21,798
98
In -Lieu of tax
9,000
7,443
(1,557)
Homestead exemption
0
9,156
9,156
Federal grants
355,000
123,571
(231,429)
Other grants
40,000
0
(40,000)
Interest on investments
500
62
(438)
Other income
21,000
16,602
(4,398)
Total revenues
1,233,152
911,137
(322,015)
EXPENDITURES:
Salaries
239,097
259,005
(19,908)
FICA
18,000
18,595
(595)
Retirement
15,800
15,888
(88)
Employee insurance
85,162
83,390
1,772
Legal
2,100
3,148
(1,048)
Employee appreciation
400
58
342
Auditing
2,000
2,632
(632)
Office expense
4,290
577
3,713
Dues
200
118
82
Utilities
5,500
6,212
(712)
Telephone
2,000
1,960
40
Travel
600
402
198
Training
1,500
210
1,290
Insurance
17,600
19,602
(2,002)
Maintenance
62,200
83,471
(21,271)
Street lighting
125,000
127,235
(2,235)
County fees
0
2,061
(2,061)
Car expense
1,800
1,805
(5)
Contract mowing
10,000
15,216
(5,216)
Gas, diesel, and oil
11,500
18,155
(6,655)
Materials and supplies
71,400
59,089
12,311
Rental
13,500
27,772
(14,272)
Capital outlay:
Equipment
0
0
0
Land
0
0
0
Street improvements
1,675,000
1,351,602
323,398
Total expenditures
2,364,649
2,098,203
266,446
REVENUES OVER (UNDER) EXPENDITURES
$ (1,131,497)
$ (1,187,066)
$ (55,569)
- continued -
See Notes
to Financial Statements
38
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCE—
BUDGET
ALANCEBUDGET AND ACTUAL - STREET FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2004
- continued -
Budget Actual
REVENUES OVER (UNDER) EXPENDITURES $ (1,131,497) $ (1,187,066)
OTHER FINANCING SOURCES (USES):
Bond proceeds 100,000 0
Sale of assets 0 0
Operating transfers - in 1,025,000 1,187,498
Operating transfers - out 0 0
REVENUES OVER (UNDER) EXPENDITURES (6,497) 432
FUND BALANCE - September 30, 2003 (20,627) (20,627)
FUND BALANCE - September 30, 2004 $ (27,124) $ (20,195)
See Notes to Financial Statements
39
Var. Favorable
(Unfavorable)
$ (55,569)
(100,000)
0
162,498
0
$ 6,929
PRIZE RESERVE FUND RECONCILIATION
FOR THE REPORTING PERIOD
Beginning Reserve Balance $ 36,921
Increase in reserve
Withdrawals from reserve
Ending Reserve Balance (deficit)
0
(4,604)
$ 32,317
See Notes to Financial Statements
40
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
KENO FUND
FOR THE YEAR ENDED SEPTEMBER 30
2004
Budget
Actual
Variance
GROSS PROCEEDS
$ 0 $
948,108
$ 948,108
PRIZES:
Declared Prizes
0
731,650
731,650
Unclaimed Wins
0
1,498
1,498
Net Prizes Paid
0
733,148
733,148
NET HOLD
0
214,960
214,960
ALLOWABLE EXPENSES PAID:
Lottery Operator's Commission
0
(132,735)
(132,735)
NET KENO PROCEEDS
$ 75,000 $
82,225
$ 7,225
EXPENSES PAID BY CITY:
State Taxes
16,000
18,963
(2,963)
Other Expenses
2,600
100
2,500
TOTAL EXPENSES PAID
18,600
19,063
(463)
PROCEEDS AVAILABLE FOR DISTRIBUTION
56,400
63,162
6,762
TRANSFER FROM (TO) PRIZE RESERVES 0
4,604
4,604
COMMUNITY BETTERMENT - Transfers (167,400)
(61,000)
106,400
COMMUNITY BETTERMENT - Direct
(20,000)
(19,500)
500
NET AFTER TRANSFERS
(131,000)
(12,734)
118,266
Beginning Keno Account
Fund Balance
143,655
143,655
0
Interest
100
134
34
Reimbursements
0
0
0
KENO ACCOUNT FUND BALANCE $ 12,755 $
131,055
$ 118,300
PRIZE RESERVE FUND RECONCILIATION
FOR THE REPORTING PERIOD
Beginning Reserve Balance $ 36,921
Increase in reserve
Withdrawals from reserve
Ending Reserve Balance (deficit)
0
(4,604)
$ 32,317
See Notes to Financial Statements
40
ASSETS
CURRENT ASSETS:
Cash
Accounts receivable -
userfees
Accrued interest
receivable
Prepaid expenses
Total current assets
NON-CURRENT ASSETS:
Restricted Assets:
Bond and interest
sinking fund cash
and investments
PROPERTY:
Land
Plant/buildings
Equipment
Accumulated depreciation
Property - net
TOTALASSETS
- continued -
CITY OF BLAIR, NEBRASKA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2004
Water
$ 419,388
543,900
2,432
2,763
968,483
165,207
19,466,032
817,629
(6,452,436)
13,996,432
$ 15,302,075
Sewer
$ 71,588
122,148
1,688
1,523
196,947
Total
$ 490,976
666,048
4,120
4,286
1,165,430
100,000 437,160
49,875
3,858,014
886,758
(2,888,586)
1,906,061
$ 2,203,008
See Notes to Financial Statements
41
215,082
23,324,046
1,704,387
(9,341,022)
15,902,493
$ 17,505,083
CITY OF BLAIR, NEBRASKA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2004
- continued -
LIABILITIES AND NET ASSETS
See Notes to Financial Statements
42
Water
Sewer
Total
CURRENT LIABILITIES:
Current portion of long-term debt
$ 525,000
$ 45,000
$ 570,000
Accounts payable
134,804
15,668
150,472
Deposits payable
1,700
0
1,700
Accrued interest
107,298
23,375
130,673
Accrued expenses
6,180
2,256
8,436
Total current liabilities
774,982
86,299
861,281
NON-CURRENT LIABILITIES:
Revenue bonds payable
8,125,700
890,000
9,015,700
Total liabilities
8,900,682
976,299
9,876,981
NET ASSETS:
Investment in capital assets
net of related debt
5,345,732
971,061
6,316,793
Restricted for Debt Service
337,160
100,000
437,160
Unrestricted (deficit)
718,501
155,648
874,149
Net Assets
6,401,393
1,226,709
7,628,102
TOTAL LIABILITIES AND
NET ASSETS
$ 15,302,075
$ 2,203,008
$ 17,505,083
See Notes to Financial Statements
42
CITY OF BLAIR, NEBRASKA
COMBINED STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET FUND ASSETS
PROPRIETARY FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30 2004
OPERATING REVENUES:
User fees
$ 3,086,850
$ 677,118
$ 3,763,968
Sale of merchandise
15,863
0
15,863
Forfeited discounts
12,846
0
12,846
Other
9,443
5,113
14,556
Total revenues
3,125,002
682,231
3,807,233
EXPENSES:
Personal services
629,482
258,035
887,517
Operating expenses
721,815
148,055
869,870
Materials and supplies
425,117
58,081
483,198
Rental expense
2,793
1,397
4,190
Depreciation
556,326
106,349
662,675
Total expenses
2,335,533
571,917
2,907,450
OPERATING INCOME (LOSS)
789,469
110,314
899,783
OTHER REVENUE (EXPENSE):
Federal grants
5,710
0
5,710
Interest income
24,265
2,477
26,742
Interest expense
(385,582)
(46,806)
(432,388)
Operating transfers - in
268,301
144,436
412,737
Operating transfers - out
(150,000)
0
(150,000)
CHANGE IN NET ASSETS
552,163
210,421
762,584
NET ASSETS - Sept. 30, 2003
5,849,230
1,016,288
6,865,518
NET ASSETS - Sept. 30, 2004
$ 6,401,393
$ 1,226,709
$ 7,628,102
See Notes to Financial Statements
43
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET FUND ASSETS
BUDGET AND ACTUAL - WATER FUND
FOR THE YEAR ENDED SEPTEMBER 30 2004
Variance
Favorable
Budget
Actual
(Unfavorable)
OPERATING REVENUES:
User fees
$ 2,800,800
$ 3,086,850
$ 286,050
Sale of merchandise
13,000
15,863
2,863
Forfeited discounts
12,000
12,846
846
Other
4,800
9,443
4,643
Total revenues
2,830,600
3,125,002
294,402
EXPENSES:
Personal services:
Salaries
450,657
453,494
(2,837)
FICA
33,400
32,757
643
Workman's compensation
8,400
10,406
(2,006)
HAL insurance
115,524
105,506
10,018
Retirement (city share)
22,500
21,778
722
Unemployment and disability
3,450
3,945
495
Pension administration
1,500
1,596
(96)
Total
635,431
629,482
6,939
Operating expenses:
Legal fees
10,500
9,484
1,016
Auditing
5,600
3,048
2,552
Consultants
30,000
73,513
(43,513)
Employee appreciation
600
25
575
Postage
7,200
8,707
(1,507)
Printing and publications
900
1,629
(729)
Computer programming
5,300
4,745
555
Schools, travel, and training
4,500
3,039
1,461
Dues
1,600
1,335
265
Utilities
300,000
355,201
(55,201)
Telephone
5,000
5,056
(56)
Vehicle insurance
1,500
2,592
(1,092)
Liability insurance
2,800
11,487
(8,687)
Buildings and contents insurance
9,500
1,026
8,474
Employee bonds
100
0
100
Radio maintenance
600
542
58
Office equipment maintenance
1,000
566
434
Motorized equipment maintenance
8,000
6,470
1,530
Building maintenance
30,000
30,916
(916)
Major maintenance
117,000
158,534
(41,534)
Contingent reserve
5,000
0
5,000
Electronic maintenance
10,000
15,149
(5,149)
Car expense
1,200
1,005
195
Gateway development
20,000
20,000
0
Bad accounts
5,000
3,766
1,234
Contract mowing
8,000
3,980
4,020
Total
$ 590,900
$ 721,815
$ (130,915)
See Notes to Financial Statements
continued -
44
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET FUND ASSETS
BUDGET AND ACTUAL - WATER FUND
FOR THE YEAR ENDED SEPTEMBER 30 2004
continued -
Variance
Favorable
Budget
Actual
(Unfavorable)
EXPENSES:
Materials and supplies:
Office supplies
$ 34,500
$ 18,440
$ 16,060
Janitorial supplies
600
340
260
Shop supplies
2,000
1,688
312
Chemicals
390,000
373,639
16,361,
Meters
15,000
2,052
12,948
Supplies for inventory
2,000
12,431
(10,431)
Gas, oil and diesel
7,000
6,920
80
Uniforms
2,400
2,368
32
Small tools
3,000
2,970
30
Payment to OPPD
1,000
2,737
(1,737)
Other materials and supplies
5,420
1,532
3,888
Total
462,920
425,117
37,803
Rental expense
1,400
2,793
(1,393)
Total expenses
1,690,651
1,779,207
(87,566)
OPERATING INCOME (LOSS) BEFORE
DEPRECIATION
1,139,949
1,345,795
206,836
DEPRECIATION
0
(556,326)
(556,326)
OPERATING INCOME (LOSS)
1,139,949
789,469
(350,480)
NON-OPERATING REVENUES (EXPENSES):
Federal grants
0
5,710
5,710
Interest income
26,000
24,265
(1,735)
Interest expense
(451,177)
(385,582)
65,595
Bonding costs
0
0
0
Operating transfers - in
0
268,301
268,301
Operating transfers - out
(150,000)
(150,000)
0
CHANGE IN NET ASSETS
564,772
552,163
$ (12,609)
NET ASSETS - Sept. 30, 2003
5,849,230
5,849,230
NET ASSETS - Sept. 30, 2004
$ 61414,002
$ 6,401,393
See Notes to Financial Statements
45
NON-OPERATING REVENUE (EXPENSE):
Interest income 4,000 2,477
Interest expense (47,723) (46,806)
Transfers - in 0 144,436
CHANGE IN NET ASSETS 126,436 210,421
NET ASSETS - Sept. 30, 2003
NET ASSETS - Sept. 30, 2004
1,016,288 1,016,288
$ 1,142,724 $ 1,226,709
See Notes to Financial Statements
46
(1,523)
917
144,436
$ 83,985
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
BUDGET AND ACTUAL - SEWER FUND
FOR THE YEAR ENDED SEPTEMBER 30
2004
Var. Favorable
Budget
Actual
(Unfavorable)
OPERATING REVENUES:
User fees
$ 660,000 $
677,118
$ 17,118
Other revenue
0
5,113
5,113
Total revenues
660,000
682,231
22,231
EXPENSES:
Personal services:
Salaries
197,231
192,945
4,286
FICA
14,000
14,044
(44)
Employee insurance
44,410
40,300
4,110
Retirement
10,500
10,746
(246)
Total
i 266,141
258,035
8,106
Operating expenses:
Legal
2,250
1,950
300
Auditing
3,000
3,464
(464)
Consultants/engineering
26,800
19,566
7,234
Employee appreciation
400
0
400
Postage
4,200
4,275
(75)
Printing and publication
200
322
(122)
Computer programming
3,200
2,691
509
School, travel, and training
2,750
1,642
1,108
Dues
400
40
360
Utilities
43,000
41,076
1,924
Telephone
2,000
1,629
371
Insurance
11,300
12,378
(1,078)
Maintenance
56,900
55,898
1,002
Carexpense
900
464
436
Contract mowing
9,000
2,660
6,340
Total
166,300
148,055
18,245
Materials and supplies
56,400
58,081
(1,681)
Rental expense
1,000
1,397
(397)
Total expenses
489,841
465,568
24,273
OPERATING INCOME (LOSS) BEFORE
DEPRECIATION
170,159
216,663
46,504
DEPRECIATION
0
(106,349)
(106,349)
OPERATING INCOME (LOSS)
170,159
110,314
(59,845)
NON-OPERATING REVENUE (EXPENSE):
Interest income 4,000 2,477
Interest expense (47,723) (46,806)
Transfers - in 0 144,436
CHANGE IN NET ASSETS 126,436 210,421
NET ASSETS - Sept. 30, 2003
NET ASSETS - Sept. 30, 2004
1,016,288 1,016,288
$ 1,142,724 $ 1,226,709
See Notes to Financial Statements
46
(1,523)
917
144,436
$ 83,985
CITY OF BLAIR, NEBRASKA
STATEMENT OF CHANGES IN CASH FLOW
WATER FUND AND SEWER FUND
FOR THE YEAR ENDED SEPTEMBER 30 2004
%AI -4 .. Qn. nr Tnfni
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$ 3,124,038
$ 675,852
$ 3,799,890
Cash payments to suppliers
(1,315,244)
(296,526)
(1,611,770)
Cash payments to employees
(453,494)
(192,945)
(646,439)
Net Cash Provided by Operating Activities
1,355,300
186,381
1,541,681
CASH FLOWS FROM NON -CAPITAL
FINANCIAL ACTIVITIES:
Operating transfers in 268,301
Operating transfers out (150,000)
Net Cash Used For Noncapital
Financing Activities 118,301
CASH FLOWS FROM CAPITAL AND
24,623
RELATED FINANCING:
5,710
Acquisition of capital assets
(760,442)
Repayment of long-term debt
(505,000)
Interest payment long-term debt
(392,872)
Net Cash Used For Capital And
Related Financing Activities
(1,658,314)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from interest earnings
24,623
Proceeds from federal grants
5,710
Proceeds from restricted assets
2,340
Net Cash Provided by Investing Activities
32,673
Net Increase (Decrease) in Cash and Cash
Equivalents
Cash and Equivalents, October 1
Cash and Equivalents, September 30
Reconciliation of operating income to net cash
provided by (used for) operating activities:
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
(Increase) decrease in receivables
(Increase) decrease in inventory
(Increase) decrease in prepaid expenses
(Decrease) increase in accounts payable
Total Adjustments
Net Cash Provided by Operating Activities
(152, 040)
571,428
$ 419,388
$ 789,469
556,326
(964)
(1,326)
12,431
(636)
565,831
$ 1,355,300
144,436
0
144,436
(174,246)
(40,000)
(47, 722)
(261,968)
2,739
0
n
71,588
0
$ 71,588
$ 110,314
106,349
(6,379)
(24, 019)
0
,
$ 186,381
See Notes to Financial Statements
47
412,737
(150,000)
262,737
(934,688)
(545,000)
(440,594)
(1,920,282)
27,362
5,710
2,340
35,412
(80,452)
571,428
$ 490,976
$ 899,783
662,675
(7,343)
(25,345)
12,431
(520)
641,898
$ 1,541,681
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Blair conform to accounting principles generally accepted in the
United States of America as applicable to governments. The Governmental Accounting Standards
Board (GASB) is the accepted standard setting body for governmental accounting and financial
reporting principles. The City has implemented GASB Statement No. 34 and these statements are
presented according to those requirements. The following is a summary of the significant policies.
A. Description of the Reporting Entity
This report includes all funds of the City of Blair (the primary government"). The City of Blair (the
City) operates under a Board of Trustees form of government and provides the following services:
public safety, streets, culture and recreation, public improvements, planning and zoning, water and
sewer services, and general administrative services.
B. Basis of Accounting/Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of
self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and
expenditures. Governmental resources are allocated to and accounted for in individual funds
based upon the purposes for which they are to be spent and the means by which spending
activities are controlled.
Government -Wide Financial Statements
The City Government -Wide Financial Statements include a Statement of Net Assets and a
Statement of Activities (including Changes in Net Assets). These statements present summaries
of Governmental Activities for the City. Fiduciary activities of the City are not included in these
statements.
These statements are presented on an "economic resources" measurement focus and the accrual
basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets and
infrastructure as well as long-term debt, are included in the accompanying Statement of Net
Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while expenses are
recognized in the period in which the liability is incurred. The Statement of Activities demonstrates
the degree to which the direct expenses of a given function are offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific function. The types of
transactions reported as program revenues for the City are reported in three categories: 1)
charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.
Charges for services include revenues from customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function. Grant and
contributions include revenues restricted to meeting the operational or capital requirements of a
particular function. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
48
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
- continued -
All internal balances in the Statement of Net Assets have been eliminated.
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues,
Expenditures, and Changes in Fund Balances for all major governmental funds. An accompanying
schedule is presented to reconcile and explain the differences in net assets as presented in these
statements to the net assets presented in the Government -Wide Financial Statements. The City
has presented all major funds that met the qualifications of GASB Statement No. 34.
All governmental funds are accounted for on a spending or "current financial resources"
measurement focus and the modified accrual basis of accounting. Accordingly, only current
assets and current liabilities are included on the Balance Sheet. The Statement of Revenues,
Expenditures and Changes in Fund Balances present increases (revenues and other financing
sources) and decreases (expenditures and other financing uses) in net current assets. Under
modified accrual basis of accounting, revenues are recognized in the accounting period in which
they become both measurable and available to finance expenditures of the current period.
Accordingly, revenues are recorded when received in cash, except that revenues subject to
accrual (generally 60 -days after year-end) are recognized when due. The primary sources
susceptible to accrual are property tax, sales tax, transient occupancy tax, franchise fees, motor
vehicle in lieu, highways users tax, investment income, and grant revenues.
Expenditures are generally recognized under the modified accrual basis of accounting when the
' related fund ability is incurred. An exception to this general rule is principal and interest on
general long-term debt which is recognized when due.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial
F resources of the City, except those required to be accounted for in the another 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.
The Street Fund is used to record transactions in the Street department, as the State of
Nebraska requires an accounting to verify the matching of funds it provides for this purpose.
The Keno Fund maintains an accounting of Keno gambling activity because the funds earned
are restricted to community betterment projects and require special state reporting.
49
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
- continued - SEPTEMBER 30, 2004
Business -type Activities
Business type activities are accounted for on a flow of economic resources measurement focus. With
this measurement focus, all assets and all liabilities associated with the operation of these funds are
included on the balance sheet. Proprietary fund -type operating statements present increases (e.g.
revenues) and decreases (e.g. expenses) in net total assets. Proprietary funds distinguish operating
revenues and expenses from non-operating items. Operating revenues and expenses generally result
from providing services and producing and delivering goods in connection with a proprietary fund's
principal ongoing operations. The principal operating revenues of the City's water and sewer, are
charges to customers for sales and services. Operating expenses for the enterprise funds include the
cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as non-operating revenues and expenses.
C. Budgetary Policy and Control
Budgetary Basis of Accounting
The City's legally adopted budget is not in conformity with generally accepted accounting
principles. The budget is prepared and adopted using the cash basis of accounting whereby
revenues budgeted are expected to be received rather than earned and expenditures
budgeted are expected to be disbursed rather than incurred. There are no significant
differences between the budgeted basis of accounting and the generally accepted basis. The
Board sets the property tax levy needed to support the coming years budget in August of each
year and submits its budget as required by State statute.
• Budgetary Control
Each funds appropriated budget is prepared on a detailed line item basis. Revenues are
G budgeted by source. Expenditures are budgeted by department. Expenditures at the
fund level constitutes the legal level of control. Expenditures may not exceed
appropriations at this level. All budget revisions at this level are subject to final review by
the Council. No revisions to the budget were made for the year ended September 30,
2004.
D. Investments
Investments are shown at cost. There are no significant differences in cost and fair values at
September 30, 2004.
E. Capital Assets
Capital assets, which include land, machinery and equipment (furniture, vehicles, computers, etc.)
and infrastructure assets (street systems, storm drains, traffic signals, etc.), are reported in
Governmental Activities column of the Government -Wide Financial Statements. Capital assets
are defined by the City as assets with an initial, individual cost of more than $5,000. Such assets
are recorded at historical cost or estimated historical cost if purchased or constructed. Donated or
annexed capital assets are recorded at estimated market value at the date of donation or
annexation.
50
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
- continued -
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized. Major outlays for capital assets and
improvements are capitalized as projects are constructed. The City qualifies for the exemption
under GASB 34 to not retroactively apply the capitalization requirements of general infrastructure
assets. The requirements to capitalize and depreciate these assets has been applied as of
October 1, 2003. Depreciation is recorded in the Government -Wide Financial Statements on a
straight-line basis over the useful life of the assets as follows:
Assets Years
Machinery and Equipment 10
Vehicles and computers 5
Buildings 40
Street system 40
F. Property Taxes
Property tax revenue is recognized when collected by the County as the City's agent within the
current period. There are no property taxes due which are not delinquent and all delinquent taxes
are not considered collectible as of September 30, 2004.
The City's December 31, 2003 valuation was $379,169,947. The levy for the City for
the year ending September 30, 2004 was .34 per $100 of value. The total tax levy
was $1,352,150. Property taxes are collected by the County and are due December
r
31 of each year and delinquent in halves at May 1 and September 1 of the following
year.
G. Claims and Judgments Payable
The City records a liability for litigation, judgments, and claims when it is probable that an asset
has been impaired or a liability has been incurred prior to year-end and the probable amount of
loss (net of any insurance coverage) can be reasonably estimated. The liability, if any, is reported
in the Government -Wide Statement of Net Assets. The portion of the liability, which will be
liquidated with expendable, available financial resources, if any, is reflected as a liability of
applicable governmental funds.
H. Compensated Absences
The City of Blair does not accrue compensated absences because the amount cannot be
reasonably estimated.
51
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEBMER 30, 2004
1. Restricted Assets
The City of Blair has sponsored a licensed Keno operation and the restricted funds are the
accumulation of net proceeds to be used only for community betterment projects.
The City of Blair has received donations toward specific projects. The undispursed funds with
specific restrictions are accounted for in the donated fund balance.
Grants have been received by the City which are required to be spent on certain projects. The
grant fund balance represents these restricted funds not spent at September 30, 2004.
Assets are reported as restricted when limitations on their use change the nature or normal
understanding of the availability of the asset. Such constraints are either externally imposed by
creditors, contributions, grantors, or laws of other governments, or are imposed by law through
constitutional provisions or enabling legislation. Restricted assets in the debt service fund
represent assets available only for payment of general obligation debtor related expenses.
The Water and Sewer restricted cash is a sinking fund required by conditions of Revenue Bonds.
These funds will become unrestricted in the year 2010.
J. Cash and Cash Equivalents
For the purposes of the Statement of Cash Flows the City considers all short-term debt
instruments purchased within a maturity of three months or less to be cash equivalents. Short-
term investments are recorded at cost.
NOTE #2 — DEPOSITS
The statutes of the State of Nebraska require that local governmental units follow the "prudent
man" rule with deposits. The City requires that it has deposits one hundred and five percent
secured by collateral valued at market or par whichever is lower less the amount of the Federal
Deposit Insurance Corporation Insurance. Total deposits at September 30, 2004, were
$2,483,728.
Deposits consist of savings accounts and certificates of deposit with current maturities. These
deposits have no restrictions. The deposits are entirely Category 1 which means that the
investments are insured or collateralized with securities held by the entity's agent. There is no
difference between the deposits fair value and the presented amounts.
52
CITY OF BLAIR, NEBRASKA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
NOTE #3 - CAPITAL ASSETS - GOVERNMENTAL FUNDS
Depreciation expense was charged
Balance
to functions as follows:
Sept. 30, 2003
Additions
Police
Capital Assets Not Depreciated
$ 170,111
$ 0
Fire
Other Capital Assets:
Parks
34,749
Street infrastructure
0
1,351,603
Buildings
5,362,562
82,314
Equipment
2,438,324
23,131
Total Other Capital Assets
7,800,886
1,457,048
Less Accumulated depreciation:
$ 258,850
Street Infrastructure
0
(751)
Buildings
(1,299,600)
(134,412)
Equipment
(1,950,502)
(123,687)
Total Accumulated depreciation
(3,250,102)
(258,850)
Other Capital Assets Net
4,550,784
1,198,198
Governmental Activities
Capital Assets, net
$ 4,720,895
$ 1,198,198
Depreciation expense was charged
to functions as follows:
Administration
$ 38,354
Police
45,067
Cemetery
3,473
Fire
44,367
Parks
34,749
Library
6,278
Supervised recreation
4,728
Swimming pool
20,806
Zoning
0
Animal control
11,088
Streets
49,940
Total depreciation
$ 258,850
53
Balance
Deletions Sept. 30, 2004
$ 0 $ 170,111
0 1,351,603
0 5,444,876
0 2,461,455
0 9,257,934
0 (751)
0 (1,434,012)
0 (2,074,189)
0 (3,508,952)
0 5,748,982
$ 0 $ 5,919,093
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
NOTE #4 — RISK MANAGEMENT
The City of Blair is exposed to various risks of loss related to torts; theft, damage to and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered
by the purchase of commercial insurance. The City assumes liability for any deductibles and claims in
excess of coverage limitations. Settled claims from these risks have not exceeded commercial
insurance coverage in any of the past three fiscal years.
NOTE #5
In the Government -Wide financial statements net assets are classified in the following categories:
Invested in Capital Assets
This category groups all capital assets, including infrastructure, into one component of net assets.
Accumulated depreciation on these assets reduces this category.
Restricted Net Assets
This category presents external restrictions imposed by creditors, grantors, contributors or laws or
regulations of other governments and restrictions imposed by law through constitutional provisions or
enabling legislation. The City applies restricted funds first to qualifying expenses.
Unrestricted Net Assets
This category represents the net assets of the City that are not restricted for any project or other
purpose.
In the Fund financial statements, reserves and designations segregate portions of fund balance that
are either not available or have been earmarked for specific purposes. The various designations are
established by actions of the City Council and Management and can be increased, reduced, or
eliminated by similar actions. Following is a summary of reservations of fund balance and
components of unreserved fund balance at September 30, 2004.
Reserved for:
Donated Funds
Grant Funds
Debt Service
Community Betterment
Unreserved, designated for:
Street projects
Debt Service
Governmental Funds
$ 122,846
101,357
1,588,917
131,055
$ 409,953
655,237
54
Business -Type Activities
$ 0
0
437,500
0
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
NOTE #6 - LONG-TERM DEBT
Water debt
Date Rate Total
Department of Environmental
Quality Bonds 8-09-00 4.03% $6,665,700
Water Refunding Bonds 6-15-00 4.70-5.55% $1,985,000
Annual Principal Requirements
For Water Bonds
Year Ending September 30,
2005
2006
2007
2008
2009
2010-2017
TOTAL
Sewer debt
Principal
$ 525,000
545,000
721,549
744,914
768,839
5.345.398
$8650,700
Date Rate
Sewer Revenue Bonds 10-1-98 4.10-5.30%
Annual Principal Requirements
For Sewer Bonds
Interest
$ 368,994
343,921
312,325
281,949
250,465
785,536
$2,343,190
Total
$935,000
Year Ending September 30,
Principal
Interest
2005
$ 45,000
$ 45,873
2006
45,000
43,870
2007
50,000
41,708
2008
50,000
39,395
2009-2018
795,000
231,199
TOTAL
$402,002
55
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
NOTE #6 - LONG-TERM DEBT (CONTINUED)
Sinking fund requirements for Water and Sewer debt were a reserve of
$437,160 at September 30, 2004 and monthly sinking fund deposits based on
the next principle and interest payment. Net working capital of the Water and
Sewer Funds is $193,501 and $110,648, respectively at September 30, 2004.
- continued -
. CITY OF BLAIR, NEBRASKA
\
NOTES TC]FINANCIAL STATEMENTS
«
SCHEDULE OFCHANGES |NUNK8ATilREOBONDED INDEBTEDNESS
-
FOR THE YEAR ENDED SEPTEMBER 3O20O4
Balance
Interest Sept 30,
Rota 2003
Balance
Sept 30,
3.00'4.7096
$ 25.000 $
NOTE #6
-oontnued-
Dated
Description
65.000
02M5/94
Various purpose
�^03/01/95
Various purpose
01/15/96
Various purpose
06/01/98
Various purpose
� 04/15/09
Various purpose
-
40.000
10/15/00
Various purpose
`
O
� 06/01/02
Public safety
` 12Y15/02
Various purpose
-
`
�.
�
m�
TOTAL
`
U
`
..
2.75-5.4596
N
K.
O
Balance
Interest Sept 30,
Rota 2003
Balance
Sept 30,
3.00'4.7096
$ 25.000 $
D
$ 25.000
$ D
510'5.95Y6
65.000
O
30.000
85'000
5.90'4.80Y6
270.000
O
85.000
185.000
4.10'4.8596
210.000
O
40.000
170.000
3.50-4.4096
1.025.000
O
155.000
870.000
4.65-5.596
840,000
O
50.000
790.000
2.75-5.4596
745.000
O
25.000
720.000
1.60'4.2596
1286000
150008
1,135,000.
57
NOTE #6 -continued -
Year Ending
September 30,
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
CITY OF BLAIR, NEBRASKA
NOTE TO FINANCIAL STATEMENTS
SCHEDULE OF GENERAL OBLIGATION BONDS
PRINCIPAL AND INTEREST REQUIREMENTS
BY YEAR OF MATURITY
SEPTEMBER 30, 2004
Principal
Requirements
$ 555,000
530,000
465,000
440,000
405,000
230,000
240,000
250,000
110,000
115,000
120,000
130,000
45,000
50,000
50,000
55,000
55,000
60,000
$ 3,905,00-
58
,9 ,000
58
Interest
Requirements
$ 166,863
145,259
126,657
108,220
89,862
72,478
62,528
51,665
40,087
34,415
28,249
21,711
17,055
14,715
11,990
9,265
6,128
3,270
$ 1,010,47F
Total
$ 721,863
675,259
591,657
548,220
494,862
302,478
302,528
301,665
150,087
149,415
148,249
151,711
62,055
64,715
61,990
64,265
61,128
63,270
4,915,411
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
NOTE #7 - ALLOWANCE FOR DOUBTFUL ACCOUNTS
The City uses the direct write-off for uncollectable accounts. The doubtful accounts at
September 30, 2004 were not significant.
NOTE #8 - COMMITTMENTS
The City entered into an interlocal agreement with Papio-Missouri River Natural Resources District
and Washington County, Nebraska on January 13, 2004. The agreement provides that the City will
pay certain Rural Water Project construction costs estimated to be $2.2 million. The payment for the
costs can be bonded or paid on a 10 year amortization as provided in the agreement. The City will
receive rebates from the Rural Water System based on hookup fees collected and will be selling water
to the system per the agreement. The agreement has a 25 year term and no payments for
construction costs were made as of September 30, 2004.
NOTE #9 — SALES TAX
The City Sales and Use Tax of 1.5% of taxable sales within the City is going to expire on September
30, 2005. The tax was originally passed to pay for specific construction projects and property tax
relief. The City intends to ask the voters to extend the sales tax in an election to be held in May of
2005.
NOTE #10 — 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
6% of gross wage in employee contributions and 6% of gross wage in contributions from
the City are invested with an investment manager. The employees must have
accumulated six months of service, be at least age 21, and work 40 hours per week to
participate in the plan. Employees are 100% vested in employer contributions after seven
4 years of service. The plan is a single employer plan with the City maintaining fiduciary
responsibility for it. Contributions for the year ended September 30, 2004, were $132,714.
E Contributions are expected to remain relatively level from year to year. The 2004 covered
payroll and total payroll were $1,105,950 and $1,328,287 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
$62,554 for 2004, 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 September 30, 2004. 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 2004.
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
NOTE #11 - 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.
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 September 30, 1984.
NOTE #12 - 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.
NOTE #13 - ACCOUNTS RECEIVABLE - SPECIAL ASSESSMENTS
The City of Blair's special assessments outstanding as of September 30, 2004, are
composed of the following:
2004
Special assessment principle $1,619,734
Special assessments available not levied _mQ,634
Total Special Assessments Receivable $1 929,368
The delinquent special assessments at September 30, 2004 are 33% of those
outstanding. No Special assessments have been pledged to specific debt.
NOTE #14 - CONCENTRATION OF CREDIT RISK
All of the receivables of the City of Blair proprietary funds and special assessments in the
debt service fund 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. Cargill, Inc. is a major water customer
for the City. Cargill, Inc. represented 67% of water sales for the year ended September
30, 2004.
.8
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
NOTE #15 - DEFICIT FUND BALANCE
The City of Blair street fund had a deficit fund balance of $20,196 as of September 30,
2004. The deficit is the result of street improvements in excess of financing. The Debt
Service and Keno Funds had excess expenses over revenues for September 30, 2004,
61
EDWARD W SCHROEDER
CERTIFIED PUILIC ACCOUNTANT
1904 SOUTH STREET
BOX 486
BLAIR, NEBRASKA 68008
OFFICE:
(402)426-4080
FAX:
(402)426-9340
REPORT ON INTERNAL CONROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
December 30, 2004
To the City Council
City of Blair, Nebraska
I have audited the financial statements of the governmental activities, the business -type
activities, and each major fund of the City of Blair, as of and for the year ended September
30, 2004, which collectively comprise the City of Blair's basic financial statements and
have issued my report thereon dated December 30, 2004. 1 conducted my audit in
accordance with accepted auditing standards and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States.
Internal Control Over Financial Reporting
In planning and performing my audit, I considered the City of Blair, Nebraska's internal
control over financial reporting in order to determine my auditing procedures for the
purpose of expressing my opinions on the financial statements and not to provide an
opinion on the internal control over financial reporting. However, I noted certain matters
involving the internal control over financial reporting and its operation that I consider to be
reportable conditions. Reportable conditions involve matters coming to my attention
relating to significant deficiencies in the design or operation of the internal control over
financial reporting that, in my judgment, could adversely affect the City of Blair,
Nebraska's ability to record, process, summarize, and report financial data consistent with
the assertions of management in the financial statements. Reportable conditions are,
described in the accompanying schedule of findings and questioned costs as item #1.
A material weakness is a reportable condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low level the risk
that misstatements caused by error or fraud in amounts that would be material in relation
to the 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 over financial reporting would not necessarily disclose
all matters in the internal control that might be reportable conditions and, accordingly,
would not necessarily disclose all reportable conditions that are also considered to be
material weaknesses. However, of the reportable conditions described above, we
consider item #1 to be material weaknesses.
Blair City Council
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Blair's financial
statements are free of material misstatement, I performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions
was not an objective of my audit, and accordingly, I do not express such an opinion. The
results of my tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
This report is intended solely for the information and the use of the audit committee,
management, City Council, and federal awarding agencies and pass-through entities and
is not intended to be and should not be used by anyone other than these specified parties.
Edward W. Schroeder
Certified Public Accountant
63
EDWARD W SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET OFFICE:
BOX 486 (402) 426-4080
FAX:
BLAIR, NEBRASKA 68008 (402) 426-9340
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE
TO EACH MAJOR PROGRAM AND INTERNAL CONROL OVER
FINANCIAL COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
December 30, 2004
To the City Council
Blair, NE 68008
Compliance
I have audited the compliance of the City of Blair, Nebraska, with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each of its major federal programs for the year ended
September 30, 2004. The City of Blair's major federal programs are identified in the summary of
auditor's results section of the accompanying schedule of findings and questions costs. Compliance
with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal
programs is the responsibility of the City of Blair's management. My responsibility is to express an
opinion on the City of Blair's compliance based on my audit.
I conducted my audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,
Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB
Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct
and material effect on a major federal program occurred. An audit includes examining, on a test
basis, evidence about the City of Blair's compliance with those requirements and performing such
other procedures as I considered necessary in the circumstances. I believe that my audit provides a
reasonable basis for my opinion. My audit does not provide a legal determination on the City of Blair's
compliance with those requirements.
Internal Control Over Financial Reporting
The management of the City of Blair is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts, and grants applicable to
federal programs. In planning and performing my audit, I considered the City of Blair's internal control
over compliance with requirements that could have a direct and material effect on a major federal
program in order to determine my auditing procedures for the purpose of expressing my opinion on
compliance and to test and report on the internal control over compliance in accordance with OMB
Circular A-133.
64
c
k Blair City Council
Page 2
I noted certain matters involving the internal control over compliance and its operation that I consider
to be reportable conditions. Reportable conditions involve matters coming to my attention relating to
significant deficiencies in the design or operation of the internal control over compliance that, in my
judgment, could adversely affect the City of Blair's ability to administer a major federal program in
accordance with the applicable requirements of laws, regulations, contracts, and grants. Reportable
conditions are described in the accompanying schedule of findings and questioned costs as items.
However, of the reportable conditions described above, I consider item #1 to be a material weakness.
A material weakness is a reportable condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that noncompliance with
the applicable requirements of laws, regulations, contracts, and grants caused by error or fraud that
would be material in relation to a major federal program 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 over compliance would not necessarily disclose all matters in the
internal control that might be reportable conditions and, accordingly, would not necessarily disclose all
reportable conditions that are also considered to be material weaknesses. However, of the reportable
condition described above, I considered #1 to be a material weakness.
This report is intended solely for the information and use of the audit committee, management, City
Council, and federal awarding agencies and pass-through entities and is not intended to be and
should not be used by anyone other than these specified parties.
Edward W. Schroeder
Certified Public Accountant
65
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City of Blair, Nebraska
Schedule of Findings and Questioned Costs
Year ended September 30, 2004
FINANCIAL STATEMENTS:
Type of auditor's report issued - Unqualified.
INSTANCES OF NON-COMPLIANCE:
No matters were noted.
REPORTABLE CONDITIONS: ITEM #1
Segregation of Duties — One important aspect of internal control is the
segregation of duties among employees to prevent an individual employee
from handling duties, which are incompatible. The investing, deposit and
check signing are done by the same person.
Recommendation - We realize that with a limited number of office
employees, segregation of duties is difficult. However, the City should
review its control procedures to obtain the maximum internal control
possible under the circumstances.
Response — We will consider this.
Conclusion — Response acknowledged. The City could segregate duties
to the extent possible with existing personnel and utilize the council to
provide additional control through review of financial transactions and
reports.
- continued -
City of Blair, Nebraska
Schedule of Findings and Questioned Costs
Year ended September 30, 2004
- continued -
FEDERAL AWARDS:
Type of auditor's report issued — Qualified.
INSTANCES OF NON-COMPLIANCE:
No matters were noted.
REPORTABLE CONDITIONS: ITEM #1
Segregation of Duties — One important aspect of internal control is the
segregation of duties among employees to prevent an individual employee
from handling duties, which are incompatible. The investing, deposits and
check signing are done by the same person.
Recommendation - We realize that with a limited number of office
employees, segregation of duties is difficult. However, the City should
review its control procedures to obtain the maximum internal control
possible under the circumstances.
Response — We will consider this.
Conclusion — Response acknowledged. The City could segregate duties
to the extent possible with existing personnel and utilize the council to
provide additional control through review of financial transactions and
reports.
IDENTIFICATION OF MAJOR PROGRAMS:
CFDA# NAME
20.205 National Highway Traffic Safety
Administration
DOLLAR THRESHOLD: $500,000
AUDITEE WAS NOT A LOW-RISK AUDITEE.
69