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FY1989 Audit Report CityCITY OF BLAIR, NEBRASKA JULY 31, 1989 CITY OF BLAIR, NEBRASKA TABLE OF CONTENTS Page AUDITORS'S OPINION 1-2 COMBINED STATEMENTS: Combined Balance Sheet - All Fund Types and Account Special Revenue Funds: Groups 3-4 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Combining Schedule of Revenues, Expenditures Actual - All Governmental,Fund Types. 5 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - Budget (Cash Individual Statement of Revenues, Basis) and Actual - All Proprietary Fund Types and Similar Trust Funds 6 General Fixed Assets Account Group: and Actual - Street Fund Statement of General Fixed Assets 7 Statement of Changes in General Fixed Assets 8 General Long -Term Debt Account Group: Changes in Fund Balance - Budget Statement of General Obligation Bonds Principal and Interest Requirements by Year of Maturity 9 Statement of Changes in General Long -Term Debt 10 Combined Statement of Cash Flow - All Proprietary Fund Types and Similar Trust Funds 11 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 - Block Grant 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 - Park Department 35 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Library 36 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Supervised Recreation 37 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Swimming Pool 38 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 Schedule of Federal Financial Assistance 42 Auditor's Report on Internal Controls 43-45 Auditor's Report on Compliance with Laws and Regulations 46 iig I Sy om ,. �. m 1904 SOUTH STREET BOX 486 BLAIR, NEBRASKA 68008 November 7, 1989 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RESIDENCE: (402) 468-5253 OFFICE: (402) 426-4080 I have audited the general purpose financial statements of the City of Blair, Nebraska, and the combining, individual fund, and account group financial statements of the City as of and for the year ended July 31, 1989, as listed in the table of contents. These financial statements are the responsibility of the entity. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office. 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, 1989, 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. 1904 SOUTH STREET RESIDENCE: BOX 486 - (402) 468-5253 BLAIR, NEBRASKA 68008 OFFICE: (402) 426-4080 Mayor and Members of the City Council November 7, 1989 Page 2 In my opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Blair, Nebraska, at July 31, 1989, and the results of its operations and the changes in cash flow for its propriety fund types for the year then ended, in conformity with generally accepted accounting principles. Also, in my opinion, the combining, individual fund, and account group financial statements referred to above present fairly, in all material respects, the financial position of each of the individual funds and account groups of the City of Blair, Nebraska, at July 31, 1989, 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 accompanying financial information listed as supporting schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the City of Blair, Nebraska. Such information has been subjected to the auditing procedures applied in the examination of the general purpose combining, individual fund, and individual account group financial statements and, in my opinion, is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account groups, taken as a whole. Edward W. Schroeder Certified Public Accountant I CITY OF BLAIR NEBRASKA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JULY 31, 1989 ASSETS Proprietary Fund Governmental Fund Types Types Account Groups General General General Special Debt Capital Enterprise Insurance Fixed Long-term General Revenue Service Improvement Funds Fund Assets Debt Cash $ 80,932 $ 134,034 $ 36,602 $ 7,532 $ 207,230 $ 3,427 $ - $ - Receivables: Billed user fees - - - - 152,496 - - - Special assessments - - 443,502 - - - - - Accrued interest 1,026 4,163 - 143,401 22,247 1,260 - - Other - - - - 488 - - - Investments -at cost (unrestricted) 134,400 475,065 - 96,760 462,884 - - - Due from County Treasurer 31,889 710 2,138 - - - - - Inventory - - - - 29,276 - - - Prepaid expenses - - - - 4,562 - - - Restricted assets - cash and investments - at cost - - - - 798,999 60,000 - - Property - net of accumulated depreciation, where applicable - - - - 7,555,814 - 3,782,853 - Amount available in Debt Service for general long-term debt retirement - - - - - - - 316,286 Contract receivable - OPPD - - - 4,732,666 - - - - Contract receivable - block grant - 281,000 - - - - - - TOTAL ASSETS $248,247 $ 894,972 $482,242 $4,980,358 $ 9,233,996 $ 64,687 $3,782,853 $316,286 See Notes to Financial Statements. -3- CITY OF BLAIR, NEBRASKA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JULY 31 1989 LIABILITIES Proprietary Fund Governmental Fund Types Types General Special Debt Capital Enterprise Insurance General Revenue Service Improvement Funds Fund Accounts payable $ 19,637 $ 5,957 - - $ 12,345 - Accrued interest - - - - 51,036 - Accrued expenses - - - - 2,547 - Deposits payable - - - - 33,865 - Bonds payable - - - - - - Revenue bonds payable - - - - - 2,685,000 - Lease payable - - - - - - Land contract payable - - - - - - Total liabilities 19,637 5,957 - - 2,784,793 - Account Groups General General Fixed Long-term Assets Debt 255,000 37,286 24,000 316,286 See Notes to Financial Statements. -4- FUND BALANCES Contributed capital - - - - 4,320,934 - - - Investment in general fixed assets - - - - - - $3,782,853 - Retained earnings - - - - 2,128,269 - - - Fund balance 228,610 889,015 $482,242 $4,980,358 - $ 64,687 - - Total fund balances 228,610 889,015 482,242 4,980,358 6,449,203 64,687 3,782,853 - TOTAL LIABILITIES AND FUND BALANCES $248,247 $ 894,972 $482,242 $4,980,358 $ 9,233,996 $ 64,687 $3,782,853 $316,286 See Notes to Financial Statements. -4- (This page left blank intentionally) Special Revenue Fund Capital Improvement Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $318,862 $338,348 $ 19,486 - - - 34,810 41,592 6,782 $ 456,960 $ 436,871 $(20,089) - 282,794 282,794 - - - 353,672 309,062 456,960 436,871 (20,089) 662,734 125,026 558,044 (433,018) - - - - - - 5,100 5,100 - 462,497 391,246 71,251 - - - 587,523 (361,767) 5,100 5,100 - 949,290 (233,851) (286,556) (52,705) 451,860 431,771 (20,089) 72,000 73,069 1,069 5,000 5,000 - - - - (449,303) (501,340) (52,037) (161,851) (213,487) $(51,636) 7,557 (64,569) $(72,126) 1,102,502 1,102,502 5,044,927 5,044,927 $ 940,651 $ 889,015 $5,052,484 $4,980,358 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, 1989 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 Construction contracts Rental expense Depreciation Employee insurance benefit Payments to insurance companies Total OPERATING INCOME (LOSS) OTHER REVENUE (EXPENSE): Interest income Interest expense Operating transfers - in Operating transfers - out NET INCOME (LOSS) RETAINED EARNINGS/FUND BALANCE - July 31, 1988 RETAINED EARNINGS/FUND BALANCE - July 31, 1989 Insurance Fund Variance Favorable Budget Actual (Unfavorable) $ 585,915 $ 710,186 $ 124,271 $ - $ - $ - 5,600 9,988 4,388 - - - 60,000 46,461 (13,539) - - - - - - 115,500 116,598 1,098 6,800 8,909 2,109 - 365 365 658,315 775,544 117,229 115,500 116,963 1,463 429,480 414,889 14,591 - - - 249,066 257,566 (8,500) - - - 75,805 71,676 4,129 - - - 13,700 4,571 9,129 - - - 634 587 47 - - - - 237,015 (237,015) - - - - - - 92,944 111,144 (18,200) - - - 61,041 65,035 (3,994) 768,685 986,304 (217,619_) 153,985 176,179 (22,194) (110,370) (210,760) (100,390) (38,485) (59,216) (20,731) 78,675 101,195 22,520 7,592 8,069 477 (172,168) (196,382) (24,214) - - - 376,626 379,339 2,713 - - - (44,352) (2,713) 41,639 - - - 128,411 70,679 $_ 57 732) (30,893) (51,147) $(20,254) 2,057,590 2,057,590 $2,186,001 $2,128,269 See Notes to Financial Statements. -6- 115,834 115,834 C Rd_9dl q A4_tiR7 CITY OF BLAIR, NEBRASKA STATEMENT OF GENERAL FIXED ASSETS JULY 31, 1989 Land Buildings Vehicles Equipment Total GENERAL FUND: Administration $ 15,000 $ 693,309 $ - $ 115,753 $ 824,062 Police - - 58,503 39,055 97,558 Cemetery 115,000 18,084 - 15,611 148,695 Fire - - 237,598 28,807 266,405 Park 97,952 342,605 1,250 99,522 541,329 Library 22,500 116,600 - 20,116 159,216 Supervised recreation - 274 - 27,488 27,762 Swimming pool 100,000 237,581 - 165,461 503,042 Airport 32,000 137,069 - 51,423 220,492 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 49,790 212,098 403,162 675,050 CAPITALIZED LEASE - Library - 203,404 - - 203,404 TOTALS $407,452 $1,811,102 $514,149 $1,050,149 $3,782,852 See Notes to Financial Statements. -7- CITY OF BLAIR, NEBRASKA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED JULY 31 1989 Balance Balance July 31, July 31, 1988 Additions Dispositions 1989 GENERAL FUND: Administration Police Cemetery Fire Park Library Supervised recreation Swimming pool Airport Landfill Animal control SPECIAL REVENUE FUNDS - Street CAPITALIZED LEASE - Library TOTALS $ 822,386 $ 4,268 114,986 22,006 149,103 10,017 266,405 - 540,304 10,725 155,029 4,187 28,197 1,365 503,042 - 220,492 - 103,707 - 10,080 4,700 649,182 33,752 203,404 - $3,766,317 $ 91,020 $ 2,592 $ 824,062 39,434 97,558 10,425 148,695 - 266,405 9,700 541,329 - 159,216 1,800 27,762 - 503,042 - 220,492 - 103,707 2,650 12,130 7,884 675,050 - 203,404 $ 74,485 $3,782,852 See Notes to Financial Statements. See Notes to Financial Statements. CITY OF BLAIR, NEBRASKA STATEMENT OF GENERAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS BY YEAR OF MATURITY JULY 31 1989 Year Ending Principal Interest July 31, Requirements Requirements Total 1990 $ 93,000 $ 17,963 $110,963 1991 95,286 11,805 107,091 1992 53,000 6,855 59,855 1993 45,000 3,240 48,240 1994 15,000 1,425 16,425 1995 15,000 480 15,480 $316,286 $ 41,768 $358,054 See Notes to Financial Statements. CITY OF BLAIR, NEBRASKA STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT FOR THE YEAR ENDED JULY 31 1989 See Notes to Financial Statements. -10- Balance Balance Interest July 31, July 31, Dated Description Rate 1988 Additions Deductions 1989 12/15/78 Various purpose 5.20-5.25% $ 30,000 $ - $ 30,000 $ - 6/15/88 Various purpose 5.25-6.40% 310,000 55,000 255,000 Total bond obligations 340,000 - 85,000 255,000 Capitalized lease 6.00-7.00% 55,360 - 18,074 37,286 Stemmerman land contract 12.00% 32,000 - 8,000 24,000 TOTAL $427,360 $ - $111,074 $316,286 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 1989 General Enterprise Insurance Funds Fund CASH FLOW FROM OPERATIONS: Net operating income (loss) $(210,760) $(59,216) Adjustment to reconcile net income to net cash from operations: Depreciation 237,015 - Decrease in accounts receivable -user fees 222 - Increase in accounts receivable -other (62) - Decrease in inventory 1,209 - Decrease in prepaid expenses 119 - Increase (decrease) in accounts payable (20,529) - Decrease in accrued expenses (250) - Increase (decrease) in deposits payable 360 Net cash provided (used) by operations 7,324 (59,216) CASH FLOW FROM INVESTING: Purchase of property (29,877) - Interest income 101,195 8,069 Transfers - net 376,626 - Decrease (increase) in accrued interest receivable (11,747) (424) Cash from investing 436,197 7,645 CASH FLOW FROM FINANCING: Reduction of long-term debt (100,000) - Increase in restricted assets (58,835) - Interest expense (196,382) - Increase in accrued interest payable 24,020 - Cash from (used in) financing (331,197) - NET INCREASE (DECREASE) IN CASH 112,324 (51,571) CASH AND CASH EQUIVALENTS - Beginning of the period 557,790 114,998 CASH AND CASH EQUIVALENTS - End of the period $ 670,114 $ 63,427 See Notes to Financial Statements. -11- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. 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. B. 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. C. Inventory: Inventory is stated at the lower of cost (first -in, first -out) or market value. The consumption method is used in regard to inventory expenditure recognition. D. Property: All fixed assets are recorded at cost or estimated cost, if actual cost is not available. The proprietary and fiduciary fund assets are presented on the respective balance sheets except for the cost of any underground utility lines which are not included in the assets. Depreciation of the assets is computed on a straight-line method over the estimated useful lives of the assets. The range of estimated lives is from five to fifty years. 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. -12- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS Continued 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. 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. F. Compensated Absences: The City of Blair does not record accrued compensated absences as they are unmeasurable as of July 31, 1989. G. Investments: The Investments are bank Certificates of Deposits or U.S. Government Securities with no unusual restrictions other than penalty for early withdrawal. All investments are short- term. Investments are stated at cost, which approximates market value. 2. RESTRICTED ASSETS Restricted assets consist primarily of cash, certificates of deposit, and savings accounts. The assets are restricted as follows: Enterprise Insurance Funds held by the County Treasurer Funds Funds for Bond retirement $ 240 $ - Bond and interest sinking funds 766,444 - Utility deposit funds 32,315 - Reserve for insurance claims - 60,000 Total restricted assets $798,999 $ 60,000 3. LONG-TERM DEBT The City entered into an agreement with the City of Blair Library Building Corporation on October 1, 1975 to lease a library building which was constructed by the Building Corporation with proceeds from the sale of bonds. The City is required to make payments under the terms of the lease in amounts equal to the interest and bond principal payments of the bonds issued by the Building Corporation. At the end of the lease term title to the building will be conveyed to the City.' The transaction has been treated as a purchase with the present value of the remaining lease payments recorded as a liability in the general long-term group of accounts. -13- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS Continued General long-term debt, excluding bonds, consists of the following: Amount Current Portion Lease payable 10/1/75 6.00-7.00% $37,286 $18,445 Land contract payable 9/1/82 12% $24,000 $ 8,000 Proprietary fund long-term debt consists of the following: Water: 6/15/88 Sewer: 11/15/74 4. PENSION PLANS 5.15-8.00% 5.20-6.00% Current Amount Portion $2,655,000 $110,000 $ 30,000 $ 30,000 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 3% of gross wage in employee contributions and 30 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, 1989 were $48,048 and are expected to remain relatively level from year to year. 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 $31,71' were 12% of gross wage which, compiles with statutory requirements. The City contributed 6% of gross wage and the policemen contribute 60. The City does not have an actuarial study on the current plan. The City does expect contributions to remain relatively level from year to year. -14- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS Continued 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, 1989. 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. CONTRACT RECEIVABLE - BLOCK GRANT The City of Blair received an Economic Development Block Grant on May 2, 1986, in the amount of $500,000. The City used the proceeds to make a loan to Kelly Ryan Equipment Company for $500,000 on May 2, 1986. The terms of the loan are as follows: Kelly Ryan Equipment Company agreed to pay all accrued interest at 5% per annum in September 1988, and quarterly thereafter with principal payments based on a five year amortization if net profits for the quarter equals principal due on all notes and mortgages of the borrower. Security for the loan is equipment per the financing statement on file dated May 3, 1986, subject to the subordination agreement and standby agreement dated April 30, 1988. The loan is guaranteed by Kelly Ryan and H. Wayne Smith. The City of Blair has charged off against July 31, 1989, operations $500,000, the full principle amount of the loan, due to the future ability to pay of Kelly Ryan Equipment Company as of the Balance Sheet date. All accrued interest has also been removed from the Balance Sheet. The accrued interest is $81,250 as of July 31, 1989. -15- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS Continued The City of Blair received an Economic Development Block Grant on July 7, 1989, in the amount of $284,794. The City used the funds to make a loan to Nathaniel Simms Cabinetmakers, Inc. for $281,000 on July 7, 1989. The terms are as follows: The interest rate is 6% until July 7, 1990, and 7% thereafter. Security is the Deed of Trust, Financing Statement, and Security Agreement dated July 7, 1989. Interest only payments are due until July 7, 1991. Principle and interest shall be repaid in full by July 7, 1998. Kenner S. Swedburg and William S. Beans are guarantors of the loan. 7. 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, 1989, are $357,708 and $350,000 respectfully. 8. ACCOUNTS RECEIVABLE - SPECIAL ASSESSMENTS The City of Blair's special assessments outstanding as of July 31, 1989, are composed of the following: Special assessment principle and current interest $263,384 Special assessment delinquent interest 180,118 Total Special Assessments Receivable $443,502 The City of Blair special assessment principle is 1000 delinquent at July 31, 1989. The receivable is secured by tax liens on the property assessed. 9. LEASE COMMITTMENTS The City of Blair has the following lease committments: 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 -16- 0 CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS Continued 10. INSURANCE FUND The City of Blair self -insures certain medical, dental, and eye benefits for its employees. Funds are contributed from various funds into the insurance fund for proper allocation. The contributions into the fund for July 31, 1989, were $116,598. -17- CITY OF BLAIR, NEBRASKA COMBINING BALANCE SHEET - SPECIAL REVENUE FUNDS JULY 31 1989 ASSETS -18- Block Street Grant Fund Fund Total CASH SAVINGS $134,034 $ - $134,034 INVESTMENTS 475,065 - 475,065 ACCRUED INTEREST RECEIVABLE 4,163 - 4,163 DUE FROM COUNTY TREASURER 710 - 720 ECONOMIC DEVELOPMENT LOAN - 281,000 281,000 TOTAL $613,972 $281,000 $894,972 LIABILITIES AND FUND BALANCES ACCOUNTS PAYABLE $ 5,957 - $ 5,957 FUND BALANCE 608,015 $281,000 889,015 TOTAL $613,972 $281,000 $894,972 -18- CITY OF BLAIR NEBRASKA COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JULY 31 1989 -19- Block Street Grant Fund Fund Total REVENUES: Street revenues $338,348 $ - $ 338,348 Development block grants - 282,794 282,794 Interest on investments 41,592 - 41,592 Other revenues - - - Total revenues 379,940 282,794 _ 662,7.34 EXPENDITURES: Salaries 129,357 - 129,357 FICA 9,755 - 9,755 Retirement 6,369 - 6,369 Employee insurance 20,899 - 20,899 Legal 6 - 6 Engineering 890 - 890 Auditing 1,495 - 1,495 Office expenses 139 1,794 1,933 Dues 73 _ 73 Utilities 4,379 - 4,379 Telephone 1,082 - 1,082 Travel 177 - 177 Insurance 14,209 - 14,209 Maintenance 18,142 - 18,142 Street lighting 64,211 - 64,211 Contingency reserve - - - Car expense 600 - 600 County Treasurer fees 184 - 184 Sand, gravel and rock 5,799 - 5,799 Gas, diesel and oil 7,250 - 7,250 Materials and supplies 10,999 - 10,999 Block grant bad debt - 556,250 556,250 Rental 60 - 60 Captial outlay: Motorized equipment 33,752 - 33,752 Street improvements 61,419 - 61,419 Total expenditures 391,246 558,044 949,290 REVENUES OVER (UNDER) EXPENDITURES (11,306) (275,250) (286,556) OTHER FINANCING SOURCES (USES): Operating transfers - in 73,069 - 73,069 Operating transfers - out - - - REVENUES OVER (UNDER) EXPENDITURES 61,763 (275,250) (213,487) FUND BALANCE (DEFICIT) - July 31, 1988 546,252 556,250 1,102,502 FUND BALANCE - July 31, 1989 $608,015 $281,000 $ 889,015 -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 1989 Variance Favorable Budget Actual (Unfavorable) REVENUES: Highway allocation $256,879 $281,720 $ 24,841 County road tax 37,000 26,543 (10,457) Motor vehicle pro rata 2,000 - (2,000) Incentive payment 3,000 3,000 - State maintenance agreement 13,183 13,183 - Curb and street cutting 500 852 352 Sale of rock 300 747 447 Equipment rental 500 5,046 4,546 Interest on investments 34,810 41,592 6,782 Reimbursed expense 5,500 6,698 1,198 Miscellaneous - 559 559 Total Revenues 353,672 379,940 26,268 EXPENDITURES: Salaries 156,410 129,357 27,053 FICA 11,746 9,755 1,991 Retirement 5,924 6,369 (445) Employee insurance 19,507 20,899 (1,392) Legal 1,100 6 1,094 Engineering 1,000 890 110 Auditing 583 1,495 (912) Office expense 175 139 36 Dues 140 73 67 Utilities 5,375 4,379 996 Telephone 775 1,082 (307) Travel 500 177 323 Insurance 17,076 14,209 2,867 Maintenance 19,575 18,142 1,433 Street lighting 70,500 64,211 6,289 Contingency reserve 3,000 - 3,000 Car expense 600 600 - County Treasurer fees 370 184 186 Sand, gravel, and rock 11,500 5,799 5,701 Gas, diesel, and oil 12,000 7,250 4,750 Materials and supplies 17,500 10,999 6,501 Rental 5,000 60 4,940 Capital outlay: Motorized equipment 39,500 33,752 5,748 Street improvements 62,641 61,419 1,222 Total expenditures 462,497 391,246 71,251 REVENUES OVER (UNDER) EXPENDITURES (108,825) (11,306) 97,519 OTHER FINANCING SOURCES (USES): Operating transfers -in 72,000 73,069 1,069 Operating transfers -out - - - REVENUES OVER (UNDER) EXPENDITURES (36,825) 61,763 $ 98,588 FUND BALANCE - JULY 31, 1988 546,252 546,252 FUND BALANCE - JULY 31, 1989 $509,427 $608,015 -20- CITY OF BLAIR. NEBRASKA INDIVIDUAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL SPECIAL REVENUE FUNDS - BLOCK GRANT FUND FOR THE YEAR ENDED JULY 31, 1989 Variance Favorable Budget Actual (Unfavorable) REVENUES: Economic development grant Total revenues EXPENDITURES: Block grant bad debt Economic development funds returned Block grant administration Total expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE - July 31, 1988 FUND BALANCE - July 31, 1989 -21- S - $282,794 $ 282,794 282,794 282,794 - 556,250 (556,250) 125,026 - 125,026 - 1,794 (1,794) 125,026 558,044 (433,018) (125,026) (275,250) $(150,224) 556,250 556,250 $431,224 $281,000 (This page left blank intentionally) LIABILITIES AND FUND BALANCE Blair Apartments Water Sewer Total CURRENT LIABILITIES: Current portion of long-term debt $ - $ 110,000 $ 30,000 $ 140,000 Accounts payable 715 9,352 2,278 12,345 Accrued interest - 50,511 525 51,036 Accrued expenses - 2,547 - 2,547 Total current liabilities 715 172,410 32,803 205,928 DEPOSITS PAYABLE 1,550 32,315 - 33,865 LONG-TERM DEBT: Revenue bonds payable- unmatured - 2,655,000 30,000 2,685,000 Less current portion above - (110,000) (30,000) (140,000) Long-term debt -net - 2,545,000 - 2,545,000 Total liabilities 2,265 2,749,725 - 2,784,793 FUND BALANCE: Contributed capital - 1,550,100 2,770,834 4,320,934 Retained earnings: Reserved - 765,159 33,840 798,999 Unreserved 378,793 1,733,169 (782,692) 1,329,270 Total fund balance 378,793 4,048,428 2,021,982 6,449,203 TOTAL LIABILITIES AND FUND BALANCE $381,058 $6,798,153 $2,054,785 $ 9,233,996 CITY OF BLAIR. NEBRASKA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FOR THE YEAR ENDED JULY 31 1989 Blair Apartments Water Sewer OPERATING REVENUES: User fees $ - Sale of merchandise - Rental 34,461 Other 2,162 Total 36,623 158,850 EXPENSES: 635.077 Personal services 21,139 Operating expenses 19,249 Materials and supplies 1,201 Rental expense - Construction contracts - Depreciation 17,982 Total 59,571 OPERATING INCOME (LOSS) (22,948) OTHER REVENUE (EXPENSE): Interest income 2,426 Interest expense - Operating transfers -in - Operating transfers -out - NET INCOME (LOSS) (20,522) RETAINED EARNINGS (DEFICIT) - July 31, 1988 399,315 RETAINED EARNINGS (DEFICIT) - July 31, 1989 378 793 -23- Total $ 537,314 $ 172,872 $ 710,186 8,113 1,875 9,988 12,000 - 46,461 6,747 - 8,909 564,174 174,747 775,544 268,504 125,246 150,669 87,648 56,615 13,860 439 148 - 4,571 158,850 60,183 635.077 291.656 (70,903) (116,909) 89,359 (194,057) 299,460 123,859 9,410 (2,325) 79,879 (2,713) (32,658) 414,889 257,566 71,676 587 4,571 237,015 986.304 (210,760) 101,195 (196,.382) 379,339 (2,713) 70,679 2,374,469 (716,194) 2,057,590 $2,498,328 $(748,852) $2,128,269 CITY OF BLAIR, NEBRASKA COMBINING STATEMENT OF CASH FLOW ENTERPRISE FUNDS FOR THE YEAR ENDED JULY 31 1989 Blair Apartments Water Sewer Total CASH FLOW FROM OPERATIONS: Net operating income (loss) $(22,948) $(70,903) $(116,909) $(210,760) Adjustment to reconcile net income to net cash from operations: Depreciation 17,982 158,850 60,183 237,015 Decrease (increase) in accounts receivable - user fees - 4,098 (3,876) 222 Increase in accounts receivable - other - (62) - (62) Decrease in inventory - 1,209 - 1,209 Decrease (increase) in prepaid expenses - (55) 174 119 Decrease in accounts payable (10) (2,533) (17,986) (20,529) Decrease in accrued expenses - (250) - (250) Increase (decrease) in deposits payable (1,055) 1,415 - 360 Net cash provided (used) by operations (6,031) 91,769 (78,414) 7,324 CASH FLOW FROM INVESTING: Purchase of property - (25,937) (3,940) (29,877) Interest income 2,426 89,359 9,410 101,195 Transfers - net - 299,460 77,166 376,626 Decrease (increase) in accrued interest receivable (158) (11,881) 292 (11,747) Cash flow from (used in) investing 2,268 351,001 82,928 436,197 CASH FLOW FROM FINANCING: Reduction of long-term debt - (70,000) (30,000) (100,000) Decrease (increase) in restricted assets - (91,535) 32,700 (58,835) Interest expense - (194,057) (2,325) (196,382) Increase (decrease) in accrued interest payable - 24,395 (375) 24,020 Cash flow from (used in) financing - (331,197) - (331,197) NET INCREASE (DECREASE) IN CASH (3,763) 111,573 4,514 112,324 CASH AND CASH EQUIVALENTS - Beginning of the period 34,125 464,931 58,734 557,790 CASH AND CASH EQUIVALENTS - End of the period $ 30,362 $576,504 $ 63,248 $ 670,114 -24- 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 1989 -25- Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: Rental $48,000 $ 34,461 $(13,539) Other 2,100 2,162 62 Total Revenues 50,100 36,623 (13,477) EXPENSES: Personal services: Salaries 21,320 17,120 4,200 FICA 1,601 1,286 315 Workman's compensation 282 438 (156) H.A.L. insurance 2,289 2,288 1 Unemployment compensation 33 7 26 Total 25,525 21,139 4,386 Operating expenses: Auditing 116 116 - Postage 20 7 13 Printing and publication 125 54 71 Heating fuels 1,000 933 67 Utilities 9,500 9,410 90 Telephone 580 349 231 Insurance 3,445 2,851 594 Maintenance 11,700 3,908 7,792 Contingency reserve 1,000 - 1,000 Other operating expenses 800 1,621 (821) Total 28,286 19,249 9,037 Materials and supplies 1;878 1,201 677 Total expenses 55,689 41,589 14,100 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (5,589) (4,966) 623 DEPRECIATION - 17,982 (17,982) OPERATING INCOME (LOSS) (5,589) (22,948) (17,359) OTHER REVENUE - Interest income 1,740 2,426 686 NET INCOME (LOSS) $(3,849) $(20,522) $(16,673) -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 1989 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees $420,201 $537,314 $117,113 Sale of merchandise 4,600 8,113 3,513 Forfeited discounts 4,700 5,567 867 Hydrant rental 12,000 12,000 - Other - 1,180 1,180 Total revenues 441,501 564,174 122,673 EXPENSES: Personal services: Salaries 223,936 218,882 5,054 FICA 16,818 16,893 (75) Workman's compensation 2,542 3,599 (1,057) HAL insurance 22,223 20,879 1,344 Retirement (city share) 5,759 8,167 (2,408) Unemployment compensation 323 84 239 Total 271,601 268,504 3,097 Operating expenses: Legal fees 1,500 785 715 Auditing 1,340 1,205 135 Consultants 3,000 4,065 (1,065) Employee appreciation 900 660 240 Postage 3,809 3,733 76 Printing and publications 750 794 (44) Computer programming 1,250 383 867 Schools, travel, and training 1,500 1,222 278 Dues 1,698 1,943 (245) Utilities 75,500 91,196 (15,696) Telephone 1,850 2,293 (443) Vehicle insurance 670 591 79 Liability insurance 2,255 1,977 278 Buildings and contents insurance 5,062 4,845 217 Employee bonds 640 318 322 Errors and omissions insurance 900 - 900 Radio maintenance 750 427 323 Office equipment maintenance 1,300 2,011 (711) Motorized equipment maintenance 3,500 2,484 1,016 Building maintenance 3,000 3,704 (704) Major maintenance 10,000 14,349 (4,349) Contingent reserve 8,000 - 8,000 City/County tower repair - 2,243 (2,243) Chamber of Commerce - 4,500 (4,500) Maintenance agreements 3,883 4,139 (256) Car expense 384 384 - Bad accounts - 418 (418) Total 133,441 150,669 (17,228) - continued - -26- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - WATER FOR THE YEAR ENDED JULY 31, 1989 Variance Favorable - continued - Budget Actual (Unfavorable) EXPENSES: Materials and supplies: Office supplies $ 1,500 $ 1,758 $ (258) Janitorial supplies 325 305 20 Stores and supplies 2,200 1,013 1,187 Chemicals 32,000 28,565 3,435 Supplies for inventory 9,000 7,933 1,067 Gasoline 3,500 2,341 1,159 Clothing allowance 950 793 157 Small tools 600 996 (396) Hydrants, meter, pipe 7,500 12,873 (5,373) Repair contracts - - - Other materials and supplies - 38 (38) Total 57,575. 56,615 960 Rental expense - Office equipment 450 439 11 Total expenses 463,067 476,227 (13,160) OPERATING INCOME (LOSS) BEFORE DEPRECIATION (21,566) 87,947 109,513 DEPRECIATION - 158,850 (158,850) OPERATING INCOME (LOSS) (21,566) (70,903) (49,337) OTHER REVENUES (EXPENSES): Interest income 70,000 89,359 19,359 Interest expense (169,468) (194,057) (24,589) Operating transfers - in 299,460 299,460 - Operating transfers - out (40,000) - 4.0,000 NET INCOME (LOSS) $ 138,426 $123,859 $ (14,567) -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 1989 -28- Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees $165,714 $172,872 $ 7,158 Sale of merchandise 1,000 1,875 875 Other - - - Total revenues 166,714 174,747 8,033 EXPENSES: Personal services: Salaries 108,242 102,312 5,930 FICA 8,129 7,745 384 Workman's compensation 904 2,116 (1,212) H.A.L. insurance 11,433 9,249 2,184 Retirement (city share) 3,442 3,787 (345) Unemployment compensation 204 37 167 Total 132,354 125,246 7,108 Operating expense: Legal 200 - 200 Auditing 525 567 (42) Consulting - 1,377 (1,377) Employee appreciation 400 324 76 Postage 1,400 1,527 (127) Printing and publication 515 235 280 Computer programming 500 23 477 School, travel, and training 900 874 26 Dues 806 1,314 (508) Utilities 51,671 52,390 (719) Telephone 600 880 (280) Insurance 8,323 7,484 839 Maintenance 16,283 16,898 (615) Car expense 216 216 - Contingent reserve 5,000 3,539 1,461 Total 87,339 87,648 (309) Materials and supplies 16,352 13,860 2,492 Construction contracts 13,700 4,571 9,129 Rental expense 184 148 36 Total expenses 249,929 231,473 18,456 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (83,215) (56,726) 26,489 DEPRECIATION - 60,183 (60,183) OPERATING INCOME (LOSS) (83,215) (116,909) (33,694) OTHER REVENUE (EXPENSE): Interest income 6,935 9,410 2,475 Interest expense (2,700) (2,325) 375 Transfer - in 77,166 79,879 2,713 Transfer - out (4,352) (2,713) 1,639 NET INCOME (LOSS) $ (6,166) $(32,658) $(26,492) -28- CITY OF BLAIR NEBRASKA SCHEDULE OF GENERAL FUND REVENUES BUDGET (CASH BASIS) AND ACTUAL FOR THE YEAR ENDED JULY 31, 1989 Variance Favorable Budget Actual (Unfavorable) REVENUES: Taxes: Property taxes $581,724 $ 568,359 $(13,365) Insurance tax 28,000 28,598 598 Receipts in lieu of taxes 39,500 39,851 351 State aid 97,268 96,985 (283) Homestead relief 26,400 33,009 6,609 Franchise tax 54,993 55,459 466 Total 827,885 822,261 (5,624) Licenses and permits: Business licenses 15,233 15,884 651 Dog licenses 600 965 365 Permits and fines 7,050 7,947 897 Total 22,883 24,796 1,913 Charges for services: Library 4,900 4,657 (243) Landfill collections 49,000 58,089 9,089 Cemetery lots 6,500 9,750 3,250 Grave openings 11,500 10,400 (1,100) Swimming pool fees 21,500 19,674 (1,826) Swimming pool lessons 3,250 5,460 2,210 Sales of fireworks 6,250 6,800 550 Building and land leases 3,448 5,313 1,865 Library user fees 2,075 3,000 925 Rental 2,100 1,816 _(284) Total 110,523 124,959 14,436 INTEREST INCOME 16,250 23,142 6,892 OTHER REVENUES: Reimbursements - 290 290 Police lab fund 1,500 901 (599) Sale of land 2,000 990 (1,010) County inspector payments 18,422 15,818 (2,604) Other miscellaneous revenue 75 2,939 2,864 Total 21,997 20,938 (1,059) TOTAL REVENUES $999,538 $1,016,096 $ 16,558 -29- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ADMINISTRATION DEPARTMENT FOR THE YEAR ENDED JULY 31 1989 PERSONAL SERVICES: Salaries Social security Employee's insurance Retirement OPERATING EXPENSES: Legal Building inspection Auditing Civil defense Consulting Custodial services Employee appreciation Postage Printing and publications Dues Election expense Programming City utilities Telephone Travel expense Insurance and bonds Maintenance Tree stump removal Tobacco licenses Chamber of Commerce Car expense County Treasurer's collection fees Miscellaneous SUPPLIES RENTAL EXPENSES - Office equipment CAPITAL OUTLAY Office equipment TOTALS -30- Variance Favorable Budget Actual (Unfavorable) $ 98,552 $ 90,193 $ 8,359 7,402 6,773 629 32,753 29,434 3,319 3,441 3,375 66 24,000 26,297 (2,297) 3,600 3,600 - 1,398 788 610 1,800 2,250 (450) 600 1,125 (525) 2,700 2,400 300 1,100 871 229 1,051 1,272 (221) 4,775 5,613 (838) 2,297 2,588 (291) 900 712 188 1,100 94 1,006 2,362 2,130 232 3,143 3,723 (580) 6,000 3,256 2,744 7,573 6,212 1,361 4,490 4,205 285 13,000 8,720 4,280 700 - 700 - 7,500 (7,500) 1,200 937 263 5,817 6,073 (256) - 21 (21) 3,325 3,118 207 723 866 (143) 400 2,268 (1,868) $236,202 $226,414 $ 9,788 -30- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CONTINGENCY ALLOWANCE FOR THE YEAR ENDED JULY 31 1989 REPAIR AND MAINTENANCE CEMETARY FENCE FIRE HALL ROOF REPAIR LAW ENFORCEMENT AGREEMENT - 1987-88 PROFESSIONAL FEES TOTAL -31- Variance Favorable Budget Actual (Unfavorable) $ 1,309 1,917 3,672 9,088 4,252 $25,000 $20,238 $ 4,762 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL POLICE DEPARTMENT FOR THE YEAR ENDED JULY 31 1989 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Legal Auditing Postage Printing and publications Training Telephone Travel Insurance Maintenance Miscellaneous SUPPLIES: Office supplies Gas and oil Uniforms Ammunition and range Miscellaneous RENTAL EXPENSE CAPITAL OUTLAY: Office equipment Motor vehicles Firearms Radio equipment TOTALS -32- Variance Favorable Budget Actual (Unfavorable) $288,785 $288,248 $ 537 21,687 21,647 40 29,549 27,894 1,655 16,698 15,856 842 12,200 10,527 1,673 641 773 (132) 425 689 (264) 866 1,066 (200) 2,000 1,275 725 4,247 4,995 (748) 1,000 641 359 11,657 9,669 1,988 7,375 10,063 (2,688) 1,315 927 388 5,629 5,387 242 8,234 9,721 (1,487) 6,800 6,441 359 1,500 1,086 414 600 542 58 12,415 12,879 (464) 3,951 3,320 631 13,000 13,256 (256) 125 - 1.25 1,790 1,682 108 $452,489 $448,584 $ 3,905 -32- CITY OF BLAIR NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CEMETERY FOR THE YEAR ENDED JULY 31 1989 -33- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $31,740 $27,400 $ 4,340 Social security 2,384 2,057 327 Employees' insurance 2,571 3,404 (833) OPERATING EXPENSES: Legal 200 - 200 Auditing 233 104 129 Printing and publications 225 119 106 Instrument recording 100 6 94 Heating fuel 200 79 121 Utilities 1,650 1,633 17 Telephone 436 433 3 Insurance 2,162 1,730 432 Maintenance 4,100 2,143 1,957 Miscellaneous 1,200 188 1,012 SUPPLIES 3,326 2,650 676 RENTAL EXPENSE 10,200 6,720 3,480 SMALL TOOLS 1,750 664 1,086 TOTALS $62,477 $49,330 $13,147 -33- CITY OF BLAIR NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL FIRE DEPARTMENT FOR THE YEAR ENDED JULY 31 1989 -34- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES $ 2,673 $ 3,341 $ (668) OPERATING EXPENSES: Utilities and telephone 12,526 12,572 (46) Insurance 8,206 7,393 813 Maintenance 6,900 5,697 1,203 Miscellaneous 999 1,042 (43) SUPPLIES: Gas and oil 2,100 1,684 416 Safety equipment 4,500 3,695 805 Miscellaneous 660 548 112 HYDRANT RENTAL 12,000 12,000 - CAPITAL OUTLAY: Specialized equipment 20,000 - 20,000 TOTALS $70,564 $47,972 $22,592 -34- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL PARK DEPARTMENT FOR THE YEAR ENDED JULY 31, 1989 -35- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $32,148 $31,913 $ 235 Social security 2,414 2,397 17 Employees' insurance 2,820 2,973 (153) OPERATING EXPENSES: Travel 250 95 155 Utilities and telephone 2,818 3,158 (340) Insurance 2,211 1,853 358 Maintenance 6,050 4,330 1,720 Miscellaneous 178 155 23 SUPPLIES: Gas and oil 1,750 1,079 671 Miscellaneous 922 582 340 CAPITAL OUTLAY: Motorized equipment 3,675 2,729 946 Playground equipment 3,000 2,997 3 TOTALS $58,236 $54,261 $ 3,975 -35- CITY OF BLAIR NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LIBRARY FOR THE YEAR ENDED JULY 31. 1989 Budget PERSONAL SERVICES: Salaries $ 63,570 Social security 4,774 Employees' insurance 4,740 Retirement 2,142 OPERATING EXPENSES: 76 Auditing 233 Postage 400 Dues 280 Printing and publications 486 Utilities 8,147 Telephone 500 Travel 475 Insurance 1,773 Maintenance 4,925 Custodial services 2,107 SUPPLIES: 2,069 Supplies 2,918 Library materials 30,000 CAPITAL OUTLAY: 3,550 Office equipment 4,342 TOTALS $131,812 MzAm Variance Favorable Actual (Unfavorable) $ 62,561 $ 1,009 4,698 76 5,487 (747) 1,901 241 251. (18) 351 49 262 18 288 198 8,986 (839) 468 32 178 297 1,476 297 2,856 2,069 2,107 - 2,161 757 26,450 3,550 4,187 155 $124,668 $ 7,144 CITY OF BLAIR NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL SUPERVISED RECREATION FOR THE YEAR ENDED JULY 31 1989 Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $11,056 $ 5,952 $ 5,104 Social security 830 447 383 Employees' insurance 251 230 21 OPERATING EXPENSES: Auditing 175 63 112 Professional fees 2,500 1,500 1,000 Printing and publications 125 4 121 Utilities 4,300 5,358 (1,058) Telephone 469 309 160 Insurance 2,271 1,878 393 Maintenance 4,700 4,197 503 Little League and BYSA 4,500 4,500 - SUPPLIES: Gas and oil 600 246 354 Recreation supplies 700 403 297 CAPITAL OUTLAY: Motorized equipment 1,775 1,365 410 Aluminum bleacher boards 3,000 - 3,000 TOTALS $37,252 $26,452 $10,800 -37- CITY OF BLAIR NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL SWIMMING POOL FOR THE YEAR ENDED JULY 31 1989 Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $22,647 $19,862 $2,785 Social security 1,701 1,492 209 Employees' insurance 600 251 349 OPERATING EXPENSES: Auditing 233 63 170 Printing and publications 337 365 (28) Utilities and telephone 4,202 4,949 (747) Insurance 1,296 1,093 203 Maintenance 1,700 1,293 407 State sales tax 900 954 (54) Miscellaneous - 366 (366) SUPPLIES: Chemicals 2,100 1,519 581 Small tools 500 345 155 Miscellaneous 680 541 139 TOTALS $36,896 $33,093 $3,803 -38- CITY OF BLAIR NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL AIRPORT FOR THE YEAR ENDED JULY 31 1989 -39- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $2,001 $ 244 $ 1,757 Social security 150 15 135 Employees' insurance 43 219 (176) OPERATING EXPENSES: Insurance 1,700 1,414 286 Maintenance 1,300 723 577 Utilities and telephone 1,551 1,966 (415) Miscellaneous 303 21 282 RENTAL EXPENSE 11000 - 1,000 TOTALS $8,048 $ 4,602 $ 3,446 -39- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LANDFILL FOR THE YEAR ENDED JULY 31 1989 100M Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $23,806 $21,542 $ 2,264 Social security 1,788 1,618 170 Employees' insurance 2,604 2,551 53 Retirement 297 444 (147) OPERATING EXPENSES: Auditing 59 63 (4) Printing and publication 280 133 147 Telephone 408 397 11 Utilities 672 661 11 Insurance 1,843 1,555 288 Maintenance 2,750 6,340 (3,590) Miscellaneous - 66 (66) SUPPLIES: Chemicals 240 270 (30) Gas, diesel, and oil 3,000 2,940 60 Uniforms 250 104 146 Sand, gravel, and rock 450 286 164 RENTAL EXPENSE 2,780 841 1,939 TOTALS $41,227 $39,811 $ 1,416 100M CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ANIMAL CONTROL FOR THE YEAR ENDED JULY 31 1989 -41- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $15,664 $15,337 $ 327 Social security 1,176 1,152 24 Employees' insurance 1,877 1,151 726 OPERATING EXPENSES: Legal 480 480 - Auditing 59 63 (4) Veterinary expense 550 343 207 Utilities and telephone 2,095 2,097 (2) Insurance 538 435 103 Maintenance 1,025 277 748 Miscellaneous 626 183 443 SUPPLIES: Gas and oil 850 764 86 Dog license & supplies 460 663 (203) Uniforms 350 335 15 Miscellaneous 305 194 111 CAPITAL OUTLAY - motorized equipment 8,400 4,700 3,700 TOTALS $34,455 $28,174 $ 6,281 -41- CITY OF BLAIR NEBRASKA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE FOR THE YEAR ENDED JULY 31 1989 Program Economic Development Block Grant -42- Amount Received $282,794 1904 SOUTH STREET RESIDENCE: BOX 486 (402) 468-5253 BLAIR, NEBRASKA 68008 OFFICE: (402) 426-4080 November 7, 1989 Honorable Mayor and Members of the City Council City of Blair, NE Gentlemen: I have audited the general purpose financial statements of the City of Blair, Nebraska for the year ended July 31, 1.989, and have issued my report thereon dated November 7, 1989. As part of my examination I have made a study and evaluation of the system 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 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 Payables and Debt Fund balance equipment accrued liabilities -43- Administrative Controls 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 1989 financial statements and this report does not affect our report on the financial statements dated November 7, 1989. 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- EDWARD W. SCHROEDER CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET RESIDENCE: BOX 486 (402) 468-5253 BLAIR, NEBRASKA 68008 OFFICE: (402) 426-4080 November 7, 1989 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, 1989, and have issued my report thereon dated November 7, 1989. 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 -46-