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FY1991 Audit Report CityCTT; OF BLAIft, NEBRASKA JULY 31, 1991 CITY OF BLAIR, NEBRASKA TABLE OF CONTENTS Page INDEPENDENT AUDITORS' OPINION 1-2 COMBINED STATEMENTS: Combined Balance Sheet - All Fund Types and Account Groups 3-4 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - All Governmental Fund Types 5 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - Budget (Cash Basis) and Actual - All Proprietary Fund Types and Similar Trust Funds 6 General Fixed Assets Account Group: Statement of General Fixed Assets 7 Statement of Changes in General Fixed Assets 8 General Long -Term Debt Account Groin. Statement of General Obligation Bends Principal and Interest Requirements by Year of Maturity 9 Statement of Changes in General Long -Term Debt 10 Combined Statement of Cash Flow - All Proprietary Fund Types and Similar Trust Funds 11 NOTES TO FINANCIAL STATEMENTS 12-17 STATEMENTS OF INDIVIDUAL FUNDS: Special Revenue Funds: Combining Balance Sheet 18 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 19 Individual Statement of Revenues, Expenditures and Changes in Fund Balance -- Budget (Cash Basis) and Actual - Street Fund 20 Individual Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - M.I.R.F Fund 21 Enterprise Funds: Combining Balance Sheet 22 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings 23 Combining Statement of Cash Flow 24 Individual Statement of Revenues and Expenses - Budget (Cash Basis) and Actual - Blair Apartments 25 Individual Statement of Revenues and Expenses - Budget (Cash Basis) and Actual - Water 26-27 Individual Statement of Revenues and Expenses - Budget (Cash Basis) and Actual - Sewer 28 CITY OF BLAIR, NEBRASKA TABLE OF CONTENTS Page SUPPORTING SCHEDULES: Schedule of General Fund Revenues - Budget (Cash Basis) and Actual 29 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Administration Department 30 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Contingency Allowance 31 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Police Department 32 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Cemetery 33 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Fire Department 34 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual -- Pari; Department 35 Schedule of General Fund Tixpenditures - Budget (Cash Basis) and Actual -- Library 36 Schedule of General. Fund Lixpendiirures - Budget (Cash Basis) and Actual - Supervised Recreation 37 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Swimming Pool 3£ Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Airport 39 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Landfill 40 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Animal Control 41 Compliance Report 42 Internal Control Report 43-45 1904 SOUTH STREET BOX 486 BLAIR, NEBRASKA 68008 EDWARD W. SC L CERTIFIED PUBLIC ACCOUNTANT November 6, 1991 RESIDENCE: (402) 468-5253 OFFICE: (402) 426-4080 Honorable Mayor and Members of the City Council City of Blair, Nebraska "Independent Auditor's Report" e Gentlemen: I have audited the general purpose financial statements of the City of Blair, Nebraska, and the combining, individual fund, and account group financial statements of the City as of and for the year ended July 31, 1991, as listed in the table of contents. These financial statements are the responsibility si ilitY of the entity.. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards and generally accepted government auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. As described more fully in Note 1, the budgetary comparisons included in the combined statements of revenues and expenditures are on the basis of cash receipts and expenditures which is different from the accrual basis on which the actual amounts are reported. The budgetary information included for the year ended July 31, 1991, has not been compiled or audited by me and, accordingly, I do not express an opinion or any other form of assurance on it. Management has elected to omit the summaries of significant assumptions and accounting policies required under established guidelines for presentation of prospective financial statements. If the omitted summaries were included in the budgeted information, they might influence the user's conclusions about the city's budgeted information. Accordingly, this budgeted information is not designed for those who are not informed about such matters. Mayor and Members of the City Council r November 6, 1991 Page 2 In my opinion, the general purpose financial statements referred to above present fairly, in all material respects, financial position of the City of Blair, Nebraska, at July 1991, and the results of its operations and the changes in flow for its propriety fund types for the year then ended, conformity with generally accepted accounting principles. the 31, cash in Also, in my opinion, the combining, individual fund, and account group financial statements referred to above present fairly, in all material respects, the financial position of each of the individual funds and account groups of the City of Blair, Nebraska, at July 31, 1991, and the results of operations of such funds and the changes in cash flow of the individual proprietary funds for the year then ended, in conformity with generally accepted accounting principles. My examination was made for the purpose of forming an opinion on the general purpose :Financial statements taken as a whole and on the combining, individual fund, and individual account group financial statements. The Esccompanying financial information listed as supporting schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the City of Blair, Nebraska. Such information has been subjected to the auditing procedures applied in the examination of the general purpose combining, individual fund, and individual account group financial statements and, in my opinion, is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account groups, taken as a whole. Edward W. Schroeder Certified Public Accountant CITY OF BLAIR NEBRASKA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT CROUPS ,7ULY 31 , 1991 ASSETS Governmental Fund Types Special Debt General Revenue Service Cash $ - $ 60,162 $ 2,156 Receivables: Billed user fees - - - Special assessments - - 128,004 Accrued interest 341 2,859 - Other - - - Due from other funds - - - Investments -at cost (unrestricted) 137,012 309,065 - Due from County Treasurer 36,068 47 - Inventory - - - Prepaid expenses - - - Restricted assets - cash and investments - at cost - Property - net of accumulated depreciation, where applicable - Amount available in Debt Service for general long-term debt retirement - Amount to be provided for retirement of general long-term debt - Contract receivable - OPPD - TOTAL ASSETS 1173,421 Capital Im rovement $ 25,508 140,247 114,960 Proprietary Croups Fund General Types Long-term Assets General Enterprise Insurance Funds Fund $ 88,531 $ - 157,715 - 22,724 19,872 903 - 4,668 - 631,069 - 30,030 - 4,961 - 733,284 - 7,204,853 - - - 4,615,887 - - 372,133 X130,160 $4,896_,602_ L-9 $ 19,872 See Notes to Financial Statements. -3- Account Croups General General Fixed Long-term Assets Debt 3,834,020 - 130,160 21,615 $3,834,020 $151,775 CITY OF BLAIR NBBRASKA COMBINED BALANCE SHEET -- ALL BUND TYPES AND ACCOUNT GROUPS JULY 31 1991 LIABILITIES Accounts payable Accrued interest Accrued expenses Deposits payable Due to other funds Bonds payable Revenue bonds payable Lease payable Land contract payable Total liabilities Governmental Fund Types Special Debt General Revenue Service $ 46,367 $ 11,955 - 46,367 11,955 - FUND BALANCES Contributed capital Investment in general fixed assets Retained earnings Fund balance Total fund balances TOTAL LIABILITIES AND FUND BALANCES 127,054 360,178 130,160 127,054 360,178 130,160 Proprietary Fund Types General Capital Enterprise Insurance Improvement Funds Fund $ 28,861 $ - 46,231 - 3,043 - 34,971 - ® 4,668 2,430,000 - 2,543,106 4,668 Account Groups General General Fixed Long-term Assets Debt_ _ 120,000 23,775 8,000 151,775 $ - 4,320,934 - $ - - ® - - 3,834,020 - 2,014,698 - - - 4,896,602 - 15,204 - - 4,896,602 6,335,632 _15,2.04 3,834,020 - $173,421 1 372,133 $130,160 $4,896,602 $ 8,878,738 $ 19,872 $3,834,020 $151775 See Notes to Financial Statements. -4- sp Variance Favorable Woe—t Actual (Unfavorable) $ 26,600 $ 35,837 $ (763) 317,877 334,445 16,568 - - _ - - _ 38,080 37,448 (552) - - - _ 382,477 39.SF220 15,743 - - _ _ - - - - - - - - - - _ - - - - - _ - _ - - - _ 42,OOU 35,845 6,155 - - - 1,065,067 662,957 402,110 1,107,067 69�,802 408,265 _ - - - _ - (724,590) (300,582) 424,008 89,380 72,000 (17,280) - - _ Capital Tm Variance Favorable Budqet Actual (unfavorable) 72,950 ) - _ - - - _ - _ _ - - - - 3,725 - 3,725 _ _ - 423,753 56,700 ) (61,OG2) (16,25O) (635,310) (228,582) 406,728 (87,880) (14,480) CITY OF BLAIR NEBRASKA COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS/FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL, ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS FOR THE YEAR ENDED JULY 31, 1991 Enterprise Funds Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees Sale of merchandise Rental Insurance contributions Other Total EXPENSES: Personal services Operating expenses Materials and supplies Constructi®n contracts Rental expense Depreciation Employee insurance benefit Payments to insurance companies Total OPERATING INCOME (LOSS) OTHER REVENUE (EXPENSE): Interest income Interest expense Gain (loss) on fixed assets Operating transfers - in Operating transfers - out NET INCOME (LOSS) RETAINED EARNINGS/FUND BALANCE - July 31, 1990 RETAINED EARNINGS/FUND BALANCE - July 31, 1991 $ 723,500 7,000 32,700 13,410 776,610 460,097 259,363 130,815 27,800 625 878.700 70,061 (183,630) 120,000 397,166 (243,472) 58,035 2,141,501 See Notes to Financial Statements. $ 779,236 18,025 24,396 12.456 439,271 218,955 120,478 31,324 698 285,955 1.096.681 .»' 104,324 (181,442) 5,506 371,634 (164,257) (126,803) 2,141,501 iXA $ 55,736 11,025 (8,304) (954) 57,503 Insurance Fund Variance Favorable Budget Actual (Unfavorable) 200,780 200,780 106,618 73,760 180,378 20,402 229,575 229,575 197,554 49,688 247,242 (17,667) 4,800 129 25,202 (17,538) 32,742 32,742 $ 57,944 $ 15,204 28,795 28,795 (90,936) 24,072 (66,864) (38,069) (4,671) m See Notes to Financial Statements. i -7- CITY OF BLAIR, NEBRASKA STATEMENT OF GENERAL FIXED ASSETS JULY 31, 1991 Land Buildings Vehicles Equipment Total GENERAL FUND: Administration $ 15,000 $ 693,309 $ 3,280 $ 135,255 $ 846,844 Police - - 61,244 47,036 108,280 Cemetery 115,000 18,084 - 15,009 148,093 Fire - - 245,272 43,052 288,324 Park 97,952 342,605 1,250 103,563 545,370 � Library 22,500 116,600 - 24,451 163,551 Supervised recreation - 274 - 20,865 21,139 Swimming pool 100,000 237,581 - 165,461 503,042 Airport 32,000 137,069 - 51,377 220,446 Landfill 15,000 6,700 - 82,007 103,707 Animal control - 5,686 4,700 1,744 12,130 SPECIAL REVENUE FUNDS - Street 10,000 49,790 215,797 394,103 669,690 CAPITALIZED LEASE- Library - 203,404 - - 203.404 TOTALS $407,452 $1,811,102 $531,543 $1,083,923 $3,834,020 See Notes to Financial Statements. i -7- CITY OF BLAIR, NEBRASKA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED JULY 31, 1991 Balance July 31, 1989 Additions Dispositions GENERAL FUND: Administration Police Cemetery Fire Park Library Supervised recreation Swimming pool Airport Landfill Animal control SPECIAL REVENUE FUNDS - Street CAPITALIZED LEASE - Library TOTALS Balance July 31, 1991 $ 824,062 $ 32,194 S (9,412) $ 846,844 101,773 30,951 (24,444) 108,280 148,695 4,646 (5,248) 148,093 298,427 3,565 (13,668) 288,324 546,352 5,349 (6,331) 545,370 161,656 1,895 - 163,551 27,762 - (6,623) 21,139 503,042 - - 503,042 220,492 - (46) 220,446 103,707 - - 103,707 12,130 - - 12,130 699,365 203,404 $3,850,867 (29,675) 669,690 - - 203,404 S 78.600 8(95,447) $3,834,020 See Notes to Financial Statements. CITY OF BLAIR, NEBRASKA STATEMENT OF GENERAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS BY YEAR OF MATURITY JULY 31, 1991 Year Ending Principal Interest July 31, Requirements Requirements Total 1992 $ 57,718 $ 9,954 $ 67,672 1993 50,109 5,992 56,101 1994 20,534 2,868 23,402 1995 20,994 1,477 22,471 1996 2,420 75 2,495 5151.775 $_ 20,366 $172,141 See Notes to Financial Statements. ERM CITY OF BLAIR, NEBRASKA STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT FOR THE YEAR ENDED JULY 31, 199_1 See Notes to Financial Statements. -10- Balance Balance Interest July 31, July 31, Dated Description Rate 1990 Additions Deductions 1991 6/15/88 Various purpose 5.25-6.40% $190,000 $ 70,000 $120,000 1/01/91 IBM financing lease 8.06% - $ 26,757 2,982 23,775 Capitalized lease 6.00-7.00% 18,841 - 18,841 - Stemmerman land contract 12.00% 16,000 - 81000 81000 TOTAL $$224 841 $ 26,757 $ 99,823 $151,775 See Notes to Financial Statements. -10- CITY OF BLAIR, NEBRASKA ( COMBINED STATEMENT OF CASH FLOW ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS FOR THE YEAR ENDED JULY 31,_ 1991 General Enterprise Insurance Funds Fund CASH FLOW FROM OPERATIONS: Net operating income (loss) $(262,568) $(17,667) Adjustment to reconcile net income to net cash from operations: Depreciation 285,955 - increase in accounts receivable -user fees (3,349) - Increase in accounts receivable -other (112) (19,872) Increase in inventory (1,907) - Increase in prepaid expenses (331) - Increase (decrease) in accounts payable 9,084 - Increase in accrued expenses 197 - Increase (decrease) in deposits payable 575 Net cash provided (used) by operations 27,544 (37,539) CASH FLOW FROM INVESTING: Purchase of property (115,289) - Reduction in property - net 6,180 - Interest income 104,324 129 Transfers - net 207,377 - Decrease (increase) in accrued interest receivable 2,654 113 Decrease (increase) in due from other funds (4,668) 4,668 Cash from investing 200,578 4,910 CASH FLOW FROM FINANCING: Reduction of long-term debt (115,000) - Decrease in restricted assets 33,942 - Interest expense (181,442) - Decrease in accrued interest payable (2,188) - Cash from (used in) financing (264,688) - NET INCREASE (DECREASE) IN CASH (36,566) (32,629) CASH AND CASH EQUIVALENTS - Beginning of the period 756,166 32,629 CASH AND CASH EQUIVALENTS - End of the period 719,600 S - See Notes to Financial Statements. -11- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Blair accounts for its financial position and results of operations in accordance with generally accepted accounting principles applicable to governmental units. Accordingly, the City uses several funds and account groups which are described below. A. Fund Types and Account Groups: A fund or account group is an accounting entity with a self -balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The City maintains the following fund types and account groups: Governmental fund types, that include the General Fund, Street Fund, and the Sinking Fund, are used to record the general operations of the City; L, Proprietary fund types, that are used to account for activities conducted on a fee for service basis in a manner similar to commercial enterprises, provide services to the public (enterprise funds); Fiduciary fund types (trust and insurance funds), that are used to account for assets held by the City as an agent for private individuals or organizations or in trust; General fixed assets and general long-term obligation account groups, that are used to account for property and equipment and long-term obligations of governmental funds. General long-term bonded debt was repaid through the Debt Service Fund. B. Reporting Entity: All significant activities and organizations on which the City exercises oversight responsibility have been included in the City's general purpose financial statements, for the year ended July 31, 1991. The following criteria regarding manifestation of oversight were considered by the City in its evaluation of the City organizations and activities: Financial interdependency -The City is responsible for its debts and is entitled to surpluses. No separate agency receives a financial benefit nor imposes a financial burden on the City. Election of the government authority -The locally elected City Council is exclusively responsible for all public decisions and accountable for the decisions it makes. -12- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS,_ Continued 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Designation of management -The City Council appoints the CitS Administrator. The City Administrator hires other members of City management. The activities under the purview of management are within the scope of the reporting entity and management is accountable to the City Council for the activities being managed. Ability to significantly influence operations -The City Council has the statutory authority under the provisions of the Revised Statutes to significantly influence operations. This authority includes, but is not limited to, adoption of the budget, control over all assets, including facilities and properties, short term borrowing, signing contracts, and developing the programs to be provided. Accountability of fiscal matters -The responsibility and accountability over all funds is vested in the City management. C. Basis of Accounting: All governmental fund types are accounted for using the modified accrual basis of accounting. Their revenues are recognized when earned and expenditures are recognized when incurred except in the case of property tax revenues recognized when received, and in the recording of interest on general obligation bonds only when the coupons mature. The proprietary fund types and similar trust funds are accounted for using the accrual basis whereby revenues are recognized when earned and expenses are recognized when incurred. The City does not apply encumbrance accounting in any of its funds. D. Debt Service Fund: The Debt Service Fund is used to account for the payment of principal and interest on general long-term debt. The primary sources of revenue are property taxes and special assessments. E. Inventory: Inventory is stated at first -out) or market value. used in regard to inventory -13- the lower of cost (first -in, The consumption method is expenditure recognition. CITY OF GLAIR. NEBRASKA NOTES TO FINANCIAL STATEMENTS, Continued 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Property: All fixed assets are recorded at cost or estimated cost, if actual cost is not available. The proprietary and fiduciary fund assets are presented on the respective balance sheets except for the cost of any underground utility lines which are not included in the assets. Depreciation of the assets is computed on a straight-line method over the estimated useful lives of'the assets. The range of estimated lives is from five to fifty years. Assets in other than proprietary and fiduciary funds are recorded as expenditures at the time of purchase with the accumulated cost being presented in the general fixed asset group of accounts. Certain improvements such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems are not capitalized. No depreciation is provided for assets in the general fixed asset group of accounts. G. Budgetary Basis: The City's legally adopted budget is based on requirements of the State of Nebraska. The budget is prepared and adopted using the cash basis of accounting whereby revenues are budgeted when expected to be received rather than earned and expenditures are budgeted when expected to be disbursed rather than incurred. H. Compensated Absences: The City of Blair does not record accrued compensated absences as they are unmeasurable as of July 31, 1991. I. Investments: The Investments are bank Certificates of Deposits or U.S. Government Securities with no unusual restrictions other than penalty for early withdrawal. All unrestricted investments are short-term. Investments are stated at cost, which approximates market value. All investments are entirely insured or collateralized with U.S.'Government Securities and are considered cash equivalents. 1. The City's investments are categorized to give an indication of the level of risk assumed by the City at year end. The City's investments are all category 1 which means that the investments are insured or registered or the securities are held by the City or its agent in the City's name. -14- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS, Continued 2. RESTRICTED ASSETS Restricted assets consist primarily of cash, certificates of deposit, and savings accounts. The assets are restricted as follows: Enterprise Funds Bond and interest sinking funds $698,313 Utility deposit funds 34,971 Reserve for insurance claims - Total restricted assets $733,284 3. LONG-TERM DEBT Total, Water Bonds: 6/15/88 5.15-8.00% $2,430,000 Annual Principal Requirements For Water Bonds Year Ending July 31, Insurance Funds 1992 $ 120,000 1993 130,000 1994 135,000 1995 145,000 1996 55,000 1997-2014 1,845,000 TOTAL ,$2,430,000 4. PENSION PLANS The city has two pension plans covering substantially all of its employees. Employees other than policemen are covered by a defined contribution plan. All contributions required including 30 of gross wage in employee contributions and 3% of gross wage in contributions from the City are invested with an investment manager. The employees must have accumulated one year of service to participate in the plan. The plan is a single employer plan with the City maintaining fiduciary responsibility for it. Contributions for the fiscal year ended July 31, 1991 were $59,156 and are expected to remain relatively level from year to year. -15- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS, Continued 4. PENSION PLANS (Continued) 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 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. Current year contributions of $36,554 were 120 of gross wages which, compiles with statutory requirements. The City contributed 60 of gross wages and the policemen contributed 60. The City has no material pension benefit obligations as of January 1, 1990, per Actuarial Report dated November 7, 1990. The City does expect contributions to remain relatively level from year to year. During the year ended July 31, 1984, the City transferred police pension funds to an independent trustee for investment. The trustee will maintain the fund according to state law. This change in pension fund maintenance eliminated the need for the police pension fund. Contributions to the trustee were reported as an expenditure during the year ended July 31, 1991. 5. OTHER ASSET - ELECTRIC PLANT CONTRACT In April 1984, the City of Blair contracted to sell its electrical transmission and distribution generating facilities to the Omaha Public Power District. The terms of the agreement were as follows: Omaha Public Power District agreed to buy the City of Blair facilities for the sum of $5,950,000. The terms of payment shall be $1,000,000 payable at the date of the contract and the balance of $4,950,000 amortized over thirty years at nine percent interest per annum, with annual payments of $481,815 commenced 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 July 31, 1984. 6. FUNDS IN TRUST - DEBT REFUNDING The City of Blair has refunded debt in its Water Fund by setting aside current funds in an independently managed trust fund in an amount necessary to retire future bond and interest payments. The funds held in trust and refunding debt outstanding at July 31, 1991, are $359,408 and $350,000 respectfully. -16- 7. CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS. Continued ACCOUNTS RECEIVABLE - SPECIAL ASSESSMENTS The City of Blair's special assessments outstanding as of July 31, 1991, are composed of the following: Special assessment principle and current interest $ 75,580 Special assessment delinquent interest 52.424 Total Special Assessments Receivable $128,004 The City of Blair special assessment principle is 100% delinquent at July 31, 19,91. The receivable is secured by tax liens on the property assessed. The City received property in foreclosure for special assessments in the amount of $30,249 during fiscal year end July 31, 1991. The property was given a zero carry value in the financial statements. 8. LEASE COMMITMENTS The City of Blair has the following lease commitments: Lease Number Lease Date Terms Annual Amount 97184 3-06-79 Renewed in 1989 for 5 years $180 97021 6-26-78 Renewed in 1988 for 5 years $180 97295 9-07-79 One year $100 98565 8-01-83 Renewed in 1988 for 5 years $180 9. INSURANCE FUND The City of Blair self-insured certain medical, dental, and eye benefits for its employees until July 1, 1991. Funds were contributed from various funds into the insurance fund for proper allocation. The contributions into the fund for July 31, 1991, were $229,575. According to management estimates the insurance fund reserves were significantly underfunded at July 31, 1990. Effective July 1, 1991, the City will no longer self -insure medical benefits but will fund dental and vision benefits. -17- CITY OF BLAIR, NEBRASKA COMBINING BALANCE SHEET - SPECIAI, REVENUE FUNDS JULY 31, 1991 ASSETS -18- Street M.I.R.F. Fund Fund Total CASH SAVINGS $ 51,612 $ 8,550 $ 60,162 INVESTMENTS 309,065 - 309,065 ACCRUED INTEREST RECEIVABLE 2,859 - 2,859 DUE FROM THE COUNTY TREASURER 47 - 47 TOTAL $363,583 $ 81550 $372,133 LIABILITIES AND FUND BALANCES ACCOUNTS PAYABLE $ 10;879 $ 1,076 $ 11,955 FUND BALANCE 352,704 7,474 360,178 TOTAL $363,583 $ 8,550 $372,133 -18- h CITY OF BLAIR, NEBRASKA (COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JULY 31 1991 -19- Street M.I.R.F. Fund Fund Total REVENUES: h� Street revenues $334,445 $ - $ 334,445 M.I.R.F. revenues - 25,837 25,837 Interest on investments 37,448 - 37,448 r other revenues 490 - 490 Total revenues 372,383 25,837 398,220 EXPENDITURES: Salaries 139,007 - 139,007 FICA 10,554 - 10,554 Retirement 6,902 - 6,902 Employee insurance 31,424 - 31,424 Legal 6 - 6 Jngineering - - Auditing 1,552 - 1,552 office expenses 62 - 62 t)ues 170 - 110 [Utilities 3,619 - 3,.619 telephone 628 - 628 Travel 195 - 195 Insurance 9,482 - 9,482 Maintenance 23,465 1,076 24,541 Street lighting 83,264 - 83,264 Contingency reserve - - - Car expense 642 - 642 County Treasurer fees 54 - 54 Sand, gravel and rock 10,049 a 10,049 Gas, diesel and oil 7,954 - 7,954 Materials and supplies 2,295 - 2,295 Rental 244 - 244 Capital outlay: Motorized equipment - - - Street improvements 331,389 34,769 366,158 Total expenditures 662,957 35,845 698,802 REVENUES OVER (UNDER) EXPENDITURES (290,574) (10,008) (300,582) OTHER FINANCING SOURCES (USES): Operating transfers - in 72,000 - 72,000 Operating transfers - out - - - REVENUES OVER (UNDER) EXPENDITURES (218,574) (10,008) (228,582) FUND BALANCE (DEFICIT)- July 31, 1989 571,278 17,482 588,760 FUND BALANCE - July 31, E 1991 $352,70.4 $ 7,474 $ 360,178 -19- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL SPECIAL REVENUE FUNDS - STREET FUND FOR THE YEAR ENDED JULY 31, 1991 Variance Favorable Budget Actual (Unfavorable) REVENUES: Highway allocation County road tax Motor vehicle pro rata Incentive payment State maintenance agreement Curb and street cutting Sale of rock Equipment rental Interest on investments Reimbursed expense Miscellaneous Total Revenues EXPENDITURES: Salaries FICA Retirement Employee insurance Legal Engineering Auditing Office expense Dues Utilities Telephone Travel Insurance Maintenance Street lighting Contingency reserve Car expense County Treasurer fees Sand, gravel, and rock Gas, diesel, and oil Materials and supplies Rental Capital outlay: Motorized equipment Street improvements Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -in Operating transfers -out REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - JULY 31, 1989 FUND BALANCE - JULY 31, 1991 $ 297,545 $307,254 $ 9,709 - 5,091 5,091 2,000 3,021 1,021 3,000 3,000 - 14,532 14,533 1 500 588 88 300 448 148 - 510 510 38,000 37,448 (552) - 490 490 355,877 372,383 16,506 153,707 139,007 14,700 11,760 10,554 1,206 6,110 6,902 (792) 32,100 31,424 676 500 6 494 3,000 - 3,000 1,550 1,552 (2) 200 62 138 100 170 (70) 5,250 3,619 1,631 1,150 628 522 300 195 105 12,150 9,482 2,668 19,000 23,465 (4,465) 80,000 83,264 (3,264) 3,000 - 3,000 600 642 (42) - 54 (54) 11,500 10,049 1,451 10,500 7,954 2,546 3,275 2,295 980 50,000 244 4,756 4,500 - 4,500 699,815 331,389 368,426 1,065,067 662,957 402,110 (709,190) (290,574) 418,616 89,280 72,000 (17,280) (619,910) (218,574) $401,336 571,278 571,278 $ (48,632) $352,704 -20- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL SPECIAL REVENUE FUNDS - M.I.R.F. FUND FOR THE YEAR ENDED JULY 31, 1991 Variance Favorable Actual (Unfavorable) REVENUES: M.I.R.F. revenues EXPENDITURES: Sidewalk construction Recycling Total expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - July 31, 1989 FUND BALANCE - July 31, 1991 -21- Budget $ 26,600 $ 25,837 $ (763) 42,000 34,769 7,231 - 1,076 (1,076) 42,000 35,845 6,155 (15,400) (10,008) $ 5,392 17,482 17,482 S 2,082 S 7,474 i (This page left blank intentionally) LIABILITIES AND FUND BALANCE Blair Apartments Water Sewer Total CURRENT LIABILITIES: Current portion of long-term debt $ - $ 120,000 $ - $ 120,000 Accounts payable 154 20,679 8,028 28,861 Accrued interest - 46,231 - 46,231 Accrued expenses - 3,043 - 3,043 Total current liabilities i` 154 189,953 8,028 198,135 DEPOSITS PAYABLE - 34,971 - 34,971 LONG-TERM DEBT: Revenue bonds payable- unmatured - 2,430,000 - 2,430,000 Less current Portion above - (120,000) - (120,000) Long-term debt -net - 2,310,000 - 2,310,000 Total liabilities 154 2,534,924 8,028 2,543,106 FUND BALANCE: Contributed capital - 1,550,100 2,770,834 4,320,934 Retained earnings: Reserved - 733,284 - 733,284 Unreserved 321,160 1,766,513 (806,259) 1,281,414 Total fund balance 321,160 4,049,897 1,964,575 6,335,632 TOTAL LIABILITIES AND FUND BALANCE $321,314 $6,584,821 $1,972,603 $ 8,878,738 CITY OF BLAIR, NEBRASKA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FOR THE YEAR ENDED JULY 31, 1991 Blair Apartments Water Sewer Total OPERATING REVENUES: User fees $ - $ 552,111 $ 227,125 $ 779,236 Sale of merchandise - 16,100 1,925 18,025 Rental 12,396 12,000 - 24,396 Other 1,560 10,896 - 12,456 Total 13,956 591,107 229,050 834,113 EXPENSES: Personal services 18,277 286,899 134,095 439,271 Operating expenses 10,437 128,557 79,961 218,955 Materials and supplies 1,161 100,952 18,365 120,478 Rental expense - 509 189 698 Construction contracts - - 31,324 31,324 Depreciation 15,344 195,518 75,093 285,955 Total 45,219 712,435 339,027 1,096,681 OPERATING INCOME (LOSS) (31,263) (121,328) (109,977) (2G2,568) OTHER REVENUE (EXPENSE): Interest income 927 103,208 189 104,324 Interest expense - (181,442) - (181,442) f Gain (Loss) on fixed � assets 5,506 - 5,506 Operating transfers-in - 320,000 51,634 371,634 Operating transfers-out P (13,880) (149,258) (1,119) (164,257) NET INCOME (LOSS) (38,710) (28,820) (59,273) (126,803) RETAINED EARNINGS (DEFICIT) July 31, 1989 359,870 2,528,617 (746,986) 2,141,501 RETAINED EARNINGS (DEFICIT) July 31, 1991 $321,160 $2,499,797 $(806,259) $2,014,698 -23- CITY OF -* NEBRASKA COMBINING OF X ENTERPRISE FOR THE YEAR ENDED JULY 31, 1991 Blair Apartments Water Sewer Total INX.1 4n 2012=2 1,141 M43 Net operating income (loss) $(31,263) $(121,328) $(109,977) $(262,568) Adjustment to reconcile net restricted assets - 33,702 240 33,942 income to net cash from operations: - (181,442) - (181,442) Depreciation 15,344 195,518 75,093 285,955 Decrease (increase) in accounts (used in) financing - (264,928) 240 (264,688) receivable - user fees - (3,850) 501 (3,349) Increase in accounts receivable - other - (112) - (112) Decrease (increase) in inventory - (1,907) - (1,907) Decrease (increase) in prepaid expenses - (226) (105) (331) Increase (decrease) in accounts payable (466) 6,124 3,426 9,084 Decrease in accrued expenses - 197 - 197 Increase (decrease) in deposits payable(1,190) 1,765 - 575 Net cash provided (used) by operations (17,575) _7-6_,_181. (31,062) 27,544 CASH FLOW FROM INVESTING: Purchase of property - (112,670) (2,619) (115,289) Reduction in property - net 6,180 - - 6,180 Interest income 927 103,208 189 104,324 Transfers - net (13,880) 170,742 50,515 207,377 Decrease (increase) in accrued interest receivable 65 2,454 135 2,654 Decrease (increase) in due from other funds (4,668) - (4,668) Cash flow from (used in) investing (6,708) 159,066 48,220 200,578 CASH FLOW FROM FINANCING: Reduction of long-term debt - (115,000) - (115,000) Decrease (increase) in restricted assets - 33,702 240 33,942 Interest expense - (181,442) - (181,442) Increase (decrease) in accrued interest payable - (2,188) - (2,188) Cash flow from (used in) financing - (264,928) 240 (264,688) NET INCREASE (DECREASE) IN CASH (24,283) (29,681) 17,398 (36,566) CASH AND CASH EQUIVALENTS - Beginning of the period 24,296 609,750_ 122,120 756,166 CASH AND CASH EQUIVALENTS - End of the period 13 $ 580,069 $139,518 $ 719,600 CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - BLAIR APARTMENTS FOR THE YEAR ENDED JULY 31, 1991_ Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: Rental $ 20,700 $ 12,396 $ (8,304) Other 1,000 1,560 560 Total Revenues 21,700 13,956 (7,744) EXPENSES: Personal services: Salaries 18,460 13,738 4,722 FICA 1,420 1,051. 369 Workman's compensation 450 450 - H.A.L. insurance 3,960 2,970 990 Retirement - 61 (61) Unemployment compensation _ 12 7 5 Total 24,302 18,277 6,025 Operating expenses: Legal 20 - 20 Auditing 120 127 (7) Postage 20 - 20 Printing and publication 30 - 30 Travel - 29 (29) Heating fuels 900 734 166 Utilities 9,500 5,567 3,933 Telephone 366 315 51 Insurance 2,425 1,199 1,226 Maintenance 6,550 2,466 4,084 Contingency reserve 1,000 - 1,000 Other operating expenses 690 - 690 Total 21,621 10,437 11,184 Materials and supplies 1,1.80_ 1,161 19 Total expenses 47,103 29,875 17,228 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (25,403) (15,919) 9,484 DEPRECIATION - (15,344) (15,344) OPERATING INCOME (LOSS) (25,403) (31,263) (5,860) OTHER REVENUE (EXPENSE) Interest income 2,100 927 (1,173) Gain on fixed assets 120,000 5,506 (114,494) Transfers out 1119,972) (13,880) 106,092 NET INCOME (LOSS) $(23,275) $(38,710) $(15,435) -25- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - WATER FOR THE YEAR ENDED JULY 31, 1991 -26- Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees $508,000 $552,111 $ 44,111 [ Sale of merchandise 6,000 16,100 10,100 Forfeited discounts 5,500 6,667 1,167 Hydrant rental 12,000 12,000 - Other 6,910 4,229 (2,681) Total revenues 538,410 591,107 52,697 EXPENSES: Personal services: Salaries 227,272 218,100 9,172 FICA 17,400 16,703 697 Workman's compensation 5,300 (3,224 (924) HAL insurance 39,132 3.7,:118 2,014 Retirement (city share) 8,281 8,684 (403) Unemployment compensation 100 70 30 Total 297,485 286,899 10,586 Operating expenses: Legal fees 500 610 (110) Auditing 1,400 1,394 6 Consultants 5,750 1,734 4,016 Employee appreciation 900 585 315 Postage 4,000 4,332 (332) Printing and publications 950 1,476 (526) Computer programming 1,000 787 213 Schools, travel, and training 1,350 1,020 330 Dues 2,250 2,148 102 Utilities 90,500 80,476 10,024 Telephone 2,320 2,317 3 Vehicle insurance 562 553 9 Liability insurance 2,000 1,306 694 k Buildings and contents insurance 4,800 4,149 651 Employee bonds 150 96 54 Errors and omissions insurance - - - Radio maintenance 750 457 293 Office equipment maintenance 1,300 941 359 Motorized equipment maintenance 2,750 1,400 1,350 Building maintenance 3,750 4,723 (973) Major maintenance 10,000 8,830 1,170 Contingent reserve 8,000 4,500 3,500 Maintenance agreements 4,200 4,200 - Car expense 384 384 - Bad accounts - 139 (139) Total 149,566 128,557 _ 21,009 - continued - -26- fi CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - WATER FOR THE YEAR ENDED JULY 31, 1991_ Variance Favorable - continued - Budget Actual (Unfavorable) EXPENSES: r Materials and supplies: Office supplies $ 1,500 $ 1,146 $ 354 Janitorial supplies 325 277 48 Stores and supplies 1,500 1,136 364 Chemicals 32,000 34,230 (2,230) Supplies for inventory 8,000 5,694 2,306 Gasoline 3,250 3,252 (2) Clothing allowance 1,100 794 306 Small tools 650 1,052 (402) Hydrants, meter, pipe 60,000 51,014 8,986 Other materials and supplies 4,010 _ 2,357 1,653 Total 112,335 100952 11,38 -3 Rental expense - Office equipment 450 509 (59) Total expenses 559,836 516,917 42,919 OPERATING INCOME (LOSS) BEFORE == DEPRECIATION (21,426) 74,190 95,616 DEPRECIATION - (195,518) (195,518) OPERATING INCOME (LOSS) (21,426) (121,328) (99,902) OTHER REVENUES (EXPENSES): Interest income 63,011 103,208 40,197 Interest expense (183,630) (181,442)' 2,188 Operating transfers - in 350,000 320,000 (30,000) w Operating transfers - out (122,500) (149,258) (26,758) NET INCOME (LOSS) $ 85,455 $(28,820) $(114,275) r -27- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - SEWER FOR THE YEAR ENDED JULY 31, 1991 OPERATING REVENUES: User fees Sale of merchandise Total revenues EXPENSES: Personal services: Salaries FICA Workman's compensation H.A.L. insurance Retirement (city share) Unemployment compensation Total Operating expense: Legal Auditing Consulting Employee appreciation Postage Printing and publication Computer programming School, travel, and training Dues Utilities Telephone Insurance Maintenance Car expense Contingent reserve Total Materials and supplies Construction contracts Rental expense Total expenses OPERATING INCOME (LOSS) BEFORE DEPRECIATION DEPRECIATION OPERATING INCOME (LOSS) OTHER REVENUE (EXPENSE): Interest income Interest expense Transfer - in Transfer - out NET INCOME (LOSS) Variance Favorable Budget Actual (Unfavorable) $215,500 $227,125 $ 11,625 1,000 1,925 925 216,500 229,050 12,550 108,423 101,986 6,437 8,297 7,921 376 1,650 1,428 222 14,400 17,434 (3,034) 5,440 5,305 135 100 21 79 138,31 T134,095 4,215 200 - 200 610 633 (7.3) 1,500 876 624 400 344 56 1,700 1,792 (92) 475 565 (90) 400 108 292 900 696 204 1,400 1,270 130 51,500 47,706 3,794 850 683 167 6,925 5,948 977 16,100 17,124 (1,024) 216 216 - 5,000 2,000 3,000 88,176 79,961 8,215 17,300 18,365 (1,065) 27,800 31,324 (3,524) 175 189 (14) 271,761 263,934 7,827 (55,261) (34,884) 20,377 - 75,093 (75,093) (55,261) (109,977) (54,716) 4,950 189 (4,761) 47,166 51,634 4,468 (1,000) i (11119) (119) $ (4,145) 5(59,273) ,x(55,128) -28- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND REVENUES BUDGET (CASH BASIS) AND ACTUAL FOR THE YEAR ENDED JULY 31, 1991 REVENUES: Taxes. Property taxes Insurance tax Receipts in lieu of taxes State aid Homestead relief Franchise tax Total Licenses and permits: Business licenses Dog licenses Permits and fees Total Charges for services: Library Landfill collections Cemetery lots Grave openings Swimming pool fees Swimming pool lessons Sales of fireworks Building and land leases Library user fees Total INTEREST INCOME OTHER REVENUES: Grants Gifts Police lab fund Proceeds from asset sale County inspector payments Other miscellaneous revenue Total TOTAL REVENUES Budget $ 636,790 28,500 40,500 96,933 34,000 56.000 892,723 17,030 900 8.140 _ 26 , 070 4,500 100,500 8,400 12,400 21,500 3,400 6,800 5,200 2,500 165,200 16,200 50,850 1,200 18,000 70,050 $1,170,243 -29- Actual $ 590,910 30,751 49,152 96,934 31,930 56.636 856,313 17,712 1,574 8,890 28,1766 5,192 98,114 10,470 12,600 19,832 5,889 6,800 8,271 3.742 170,910 9,782 1,960 3,072 5,085 18,682 9.253 38,0.52 $1,103,233 Variance Favorable (Unfavorable) $(45,880) 2,251 8,652 1 (2,070) 636 (36,410) 682 674 750 _ 2,106 692 (2,386) 2,070 200 (1,668) 2,489 3,071 1.242 5,710 (6,418) (50,850) 1,960 1,872 5,085 682 9.253 (31,998) $(67,010) CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ADMINISTRATION DEPARTMENT FOR THE YEAR ENDED JULY 31, 1991 Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 81,505 $ 76,099 $ 5,406 Social security 6,300 5,901 399 Employee's insurance 47,920 61,938 (14,018) Retirement 3,950 3,143 807 OPERATING EXPENSES: $248,742 $247,251 $ 1,491 Legal 26,000 26,397 (397) Building inspection 3,600 3,068 532 Auditing 850 855 (5) Civil defense 1,£300 1,800 - Consulting 400 100 300 Custodial services 2,700 2,415 285 Employee appreciation 1,100 1,111 (11) Postage 1,450 1,671 (221) Printing and publications 6,000 6,104 (104) Dues and training 3,900 4,234 (334) Election expense 750 2,597 (1,847) Programming 900 200 700 City utilities 2,400 2,272 128 Telephone 4,100 3,796 304 Travel expense 3,500 1,135 2,365 Insurance and bonds 5,670 3,107 2,563 Maintenance 4,500 2,749 1,751 Tree stump removal 11,000 11,875 (875) Tobacco licenses 850 465 385 Chamber of Commerce 7,500 7,500 - Car expense 1,900 577 1,323 County Treasurer's collection fees 6,497 6,280 217 Miscellaneous 700 1,181 (481) SUPPLIES 2,680 2,346 334 RENTAL EXPENSES Office equipment 800 898 (98) CAPITAL OUTLAY Office equipment 3,520 2,157 1,363 Motor equipment 4,000 3,280 720 TOTALS $248,742 $247,251 $ 1,491 -30- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CONTINGENCY ALLOWANCE FOR THE YEAR ENDED JULY 31, 1991_ Budget Actual GOLF CLUB ROOF $ 5,850 CLOTHING PANTRY 265 REPAIRS 952 TOTAL $20,000 $ 7,067 -31- Variance Favorable (Unfavorable) $12,933 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL POLICE DEPARTMENT FOR THE YEAR ENDED JULY 31, 1991_ PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Legal Auditing Postage Printing and publications Training Telephone Travel Dues Insurance Maintenance Medical exams Miscellaneous SUPPLIES: Office supplies Gas and oil Uniforms Ammunition and range Miscellaneous RENTAL EXPENSE CAPITAL OUTLAY: Office equipment Motor vehicles Radio equipment TOTALS. -32- Variance Favorable Budget Actual (Unfavorable) $310,896 $320,533 $(9,637) 23,785 24,568 (783) 50,860 48,887 1,973 18,100 18,277 (177) 11,500 9,712 1,788 850 855 (5) 700 681 19 850 1,128 (278) 3,750 1,977 1,773 5,100 4,519 581 1,000 841 159 300 260 40 8,300 7,550 750 8,700 9,551 (851) 250 1,153 (903) 300 - 300 7,610 8,143 (533) 8,700 11,350 (2,650) 7,800 8,015 (215) 3,618 3,609 9 500 367 133 12,500 16,785 (4,285) 7,096 3,860 3,236 28,000 22,908 5,092 5,535 4,185 1,350 $526,600 $529,71.4 $(3,114) -32- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CEMETERY FOR THE YEAR ENDED JULY 31, 1991 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Legal Auditing Printing and publications Training Travel Dues Repurchase cemetery lots Heating fuel Utilities Telephone Insurance Maintenance Miscellaneous SUPPLIES: Operating supplies Gas/Oil/Diesel Uniforms Small tools Sand/Gravel/Rock RENTAL EXPENSE CAPITAL OUTLAY: Motorized equipment Water lines TOTALS -33- Variance Favorable Budget Actual (Unfavorable) $32,980 $31,635 $ 1,345 2,525 2,421 104 5,029 5,439 (410) 910 1,044 (134) 50 - 50 90 63 27 200 60 '140 100 101 (1) 100 - 100 50 45 5 1,100 - 1,100 100 - 100 1,650 1,560 90 425 408 17 1,555 1,333 222 4,300 4,189 111 90 - 90 650 608 42 1,400 2,113 (713) 250 264 (14) 225 197 28 600 438 162 9,000 7,950 1,050 1,000 920 80 2,000 - 2,000 $66,379 $60,788 5 591 -33- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL FIRE DEPARTMENT FOR THE YEAR ENDED JULY 31, 1991___ -34- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES $ 4,750 $ 5,470 $ (720) OPERATING EXPENSES: Utilities and telephone 13,675 14,169 (494) Insurance 6,840 6,339 501 Maintenance 6,425 4,305 2,120 Travel 150 - 150 I Training 625 928 (303) Miscellaneous 285 183 102 SUPPLIES: Gas and oil 2,000 1,620 380 Safety equipment 4,000 3,113 887 Miscellaneous 645 580 65 HYDRANT RENTAL 12,000 12,000 - CAPITAL OUTLAY: Office equipment 1,250 1,250 - Specialized equipment 2,000 2,315 315) TOTALS $54,645 $52,272 $ 2,373 -34- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL PARK DEPARTMENT FOR THE YEAR ENDED JULY 31, 1991 Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $33,412 $33,700 $ (288) Social security 2,580 2,579 1 Employees' insurance 4,700 4,523 177 OPERATING EXPENSES: Travel 200 30 170 Utilities and telephone 3,175 3,452 (277) Insurance 1,820 1,159 661 Maintenance 6,400 4,761 1,639 Miscellaneous 505 264 241 SUPPLIES: Gas and oil 1,500 1,710 (210) Small tools 200 72 128 Miscellaneous 890 972 (82) CAPITAL OUTLAY: Motorized equipment 5,700 3,735 1,965 Playground equipment 6,000 1,613 4,387 TOTALS $67,082 $58,570 $ 8,512 -35- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LIBRARY FOR THE YEAR ENDED JULY 31, 1991 -36- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 64,038 S 63,219 $ 819 Social security 4,900 4,848 52 Employees' insurance 10,022 9,467 555 Retirement 2,815 2,831 (16) OPERATING EXPENSES: Auditing 260 253 7 Postage 375 513 (138) Dues 280 265 15 Printing and publications 215 163 52 Utilities 10,350 10,95-7 (607) Telephone 487 432 55 Travel 475 178 297 Insurance 1,350 1,125 225 Maintenance 19,150 3,676 15,474 Custodial services 2,100 2,107 (7) SUPPLIES: Supplies 2,494 1,504 990 Library materials 30,000 29,887 113 CAPITAL OUTLAY: Office equipment 3,000 1,895 1,105 TOTALS X52,311 $133,320 $18,991 -36- -37- °' 8 K SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CAGB BASIS) AND ACTUAL SUPERVISED RECREATION FOR THE YEAR ENDED -JULY 31l 1991 Variance Favorable Budget Actual (Unfavorable) uPERSONAL SERVICES: $ 9'832 $ 6,805 $ 3,027 Salaries Social security 760 520 240 ' Employees' insurance 385 359 %G OPERATING EXPENSES: ` Auditing75 G3 12 Professional fees 1,508 1,454 46 � Printing and publications 100 13 87 Utilities 4,350 4,063 287 ` Telephone 400 316 84 � Insurance 1,56O 1,336 224 - Maintenance, 4,750 1O 705 , (5 , 9G5) Little League and 8YSA � 4,500 4,500 - . v SUPPLIES: ` Gas and oil G0O 324 276 Recreation supplies - 7,40 339 401 CAPITAL OUTLAY: / Motorized equipment 3,500 - 3,5OO � &lomionm bleacher boards _- TOTALS " $33,2 $,�a�- 2,255 ` a/ , ' " .. -37- °' CITY OF BLAIR, NEBRASKA_ SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL SWIMMING POOL FOR THE YEAR ENDED JULY 31, 1991 PERSONAL SERVICES: Salaries Social security Employees' insurance OPERATING EXPENSES: Auditing Printing and publications Utilities and telephone Insurance Maintenance State sales tax Miscellaneous SUPPLIES: Chemicals Small tools Miscellaneous TOTALS . -38- Variance Favorable Budget Actual (Unfavorable) $22,678 $18,402 $4,276 1,734 1,408 326 725 693 32 190 190 - 338 521 (183) 4,400 4,231 169 975 817 158 1,500 1.,640 (140) 1,000 995 5 - 23 (23) 2,200 1,240 960 3,075 865 2,210 240 208 32. $39,055 $31,233 $7,822 -38- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL AIRPORT FOR THE YEAR ENDED JULY 31, 1991 PERSONAL SERVICES: Salaries Social security Employees' insurance OPERATING EXPENSES: Insurance Maintenance Engineering Utilities and telephone Miscellaneous RENTAL EXPENSE CAPITAL OUTLAY TOTALS Budget $ 1,550 120 236 2,650 1,000 5,000 2,220 230 1,000 50,000 $64,006 -39- Variance Favorable Actual (Unfavorable) $ 850 $ 700 61 59 230 6 3,575 (925) 1,624 (624) 5,105 (105) 2,068 152 73 157 - 1,000 - 50,000 , $13,586 $50,420 CITY OF BLAIR_,_ NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LANDFILL FOR THE YEAR ENDED JULY 31, 1991 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Legal Auditing Printing and publication Travel Telephone Utilities Insurance Maintenance Well monitoring SUPPLIES: Chemicals Gas, diesel, and oil Uniforms Sand, gravel, and rock Miscellaneous RENTAL EXPENSE TOTALS Budget $28,580 2,190 4,830 920 Variance Favorable Actual (Unfavorable) $ 27,702 2,152 4,616 920 $ 878 38 214 70 63 7 250 119 131 200 84 116 450 510 (60) 825 676 149 1,420 1,042 378 6,600 36,950 (30,350) 14,500 19,117 (4,617) 260 256 4 4,800 3,291 1,509 250 238 12 500 1,060 (560) 250 15 235 2,912 6,912 (4,000) $69,807 $105,723 $(35,916) -40- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ANIMAL CONTROL FOR THE YEAR ENDED JULY 31, 1991 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Legal Auditing Printing and publications Travel Training Veterinary expense Utilities and telephone Insurance Maintenance Miscellaneous SUPPLIES: Gas and oil Dog license & supplies Uniforms Miscellaneous CAPITAL OUTLAY - motorized equipment TOTALS -41- $34,372 $32,305 $ 2,067 Variance Favorable Budget Actual (Unfavorable) $16,140 $15,280 $ 860 1,235 1,170 65 4,472 4,365 107 695 670 25 500 470 30 70 63 7 125 109 16 250 - 250 150 6 144 450 1,205 (755) 3,920 2,827 1,093 425 352 73 3,440 3,107 333 900 1,068 (168) 1,150 1,098 52 275 361 (86) 175 154 21 $34,372 $32,305 $ 2,067 EDWARD W. SCHROEDER CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET BOX 486 BLAIR, NEBRASKA 68008 Honorable Mayor and Members of the City Council City of Blair, Nebraska Dear Gentlemen: November 6, 1991 RESIDENCE: (402) 468-5253 OFFICE: (402) 426-4080 I have audited the general purpose financial statements of the City of Blair, Nebraska for the year ended July 31, 1991, and have issued my report thereon dated November 6, 1991. My audit was made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in the Standards for Audits of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments and accordingly included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. The management of the City of Blair, Nebraska is responsible for the City's compliance with laws and regulations in connection with the examination referred to above I selected and tested transactions and records from non -major federal financial assistance programs to determine the City's compliance with laws and regulations non-compliance with which I believe could have a material effect on the allowability of program expenditures. The results of my tests indicated that for the transactions and records tested the City of Blair, Nebraska compiled with the laws and regulations referred to above. My testing was more limited than would be necessary to express an opinion on whether the City of Blair, Nebraska had administered those programs in compliance with in all material respects with laws and regulations non-compliance with which I believe could have a material effect on the allowability of program expenditures. However, with respect to the transactions that were not tested by me nothing came to my attention to indicate that the City of Blair, Nebraska had violated and laws and regulations. Edward W. Schroeder Certified Public Accountant -42- F E E CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET RESIDENCE: BOX 486 (402) 468-5253 BLAIR, NEBRASKA 68008 OFFICE: November 6, 1991 (402) 426-4080 Honorable Mayor and Members of the City Council City of Blair, Nebraska Dear Gentlemen: I have audited the general purpose financial statements of the City of Blair, Nebraska for the year ended July 31, 1991, and have issued my report thereon dated November 6, 1991. As part of my examination I have made a study and evaluation of the syster['of internal accounting control of the City of Blair, Nebraska to the extent I considered it necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial compliance audits contained in the U.S. % General Accounting Office Standards for Audits of Governmental Organizations, Programs, Activities, and Functions. For the purpose of this report, I have classified the significant internal accounting controls in the following categories: Accounting Controls Administrative Controls Cycles of the Entities' Activity Treasury or financing Revenue/receipts Purchases/disbursements External financial reporting Financial Statement Captions Cash and cash equivalents Receivables Inventory Property and equipment Payables and accrued liabilities Debt Fund balance -43- General Requirements Political activity Davis -Bacon Act Civil Rights Cash management Federal financial reports Specific Requirements Types of services Eligibility Matching level of effort Reporting Cost allocation Special requirements, if any Mayor and Members of the City Council Page 2 Accounting Controls - continued Accounting Applications Billings Receivables Cash receipts Purchasing and receiving Accounts payable Cash disbursements Payroll Inventory control Property and equipment General ledger The purpose of my study and evaluation was to determine the nature, timing, and extent. of the auditing procedures necessary for expressing an opinion on the entities financial statements. My study and evaluation was more limited than would be necessary to express an opinion on the system of internal. accounting control taken as a whole or on any of the categories of controls identified above. The management of the City of Blair, Nebraska is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable but not absolute assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to prevent the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations on any system of internal accounting controls errors or irregularities may never the less occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. My study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting.control of the City of Blair, Nebraska taken as a whole or on any of the categories of controls identified in the first paragraph. -44- Mayor and Members of the City Council Page 3 However, my study and evaluation disclosed the following conditions that I believe result in more than a relatively low risk the errors and irregularities in amounts that would be material in relation to the financial statements of the City of Blair, Nebraska may occur and not be detected within a timely period. The City of Blair does not have adequate segregation of duties. These conditions were considered in determining the nature, timing, and extent of the audit tests to be applied in my examination of the 1991 financial statements and this report does not affect our report on the financial statements dated November 6, 1991. This report is intended solely for the use of management and the applicable cognizant agency and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which upon acceptance by the cognizant agency is a matter of public record. Edward W. Schroeder Certified Public Accountant -45-