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FY1986 Audit Report CityCITY OF BLAIR, NEBRASKA JULY 312 1986 CITY OF BLAIR, NEBRASKA TABLE OF CONTENTS Page AUDITOR'S 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 17 Actual - All Governmental Fund Types 5 Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balance - Budget (Cash 18 Basis) and Actual - All Proprietary Fund Types and Similar Trust Funds 6 General Fixed Assets Account Group: 19 Statement of General Fixed Assets 7 Statement of Changes in General Fixed Assets 8 General Long -Term Debt Account Group: 20 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 Changes in Financial Position - 22 All Proprietary Fund Types and Similar Trust Funds 11 NOTES TO FINANCIAL STATEMENTS 12-15 STATEMENTS OF INDIVIDUAL FUNDS: Special Revenue Funds: Combining Balance Sheet 16 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 17 Individual Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Street Fund 18 Individual Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Revenue Sharing Fund 19 Individual Statement of Revenues, Expenditures and Changes in Fund Balance - Budget (Cash Basis) and Actual - Block Grant Fund 20 Enterprise Funds: Combining Balance Sheet 21 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings 22 Combining Statement of Changes in Financial Position 23 Individual Statement of Revenues and Expenses - Budget (Cash Basis) and Actual - Blair Apartments 24 Individual Statement of Revenues and Expenses - Budget (Cash Basis) and Actual - Water 25-26 Individual Statement of Revenues and Expenses - Budget (Cash Basis) and Actual - Sewer 27 CITY OF BLAIR. NEBRASKA TABLE OF CONTENTS Page SUPPORTING SCHEDULES: Schedule of General Fund Revenues - Budget (Cash Basis) and Actual 28 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Administration Department 29 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Contingency Allowance 30 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Police Department 31 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Cemetery 32 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Fire Department 33 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Park Department 34 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Library 35 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Supervised Recreation 36 Schedule of General Fund Expenditures -.Budget (Cash Basis) and Actual - Swimming Pool 37 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Airport 38 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Landfill 39 Schedule of General Fund Expenditures - Budget (Cash Basis) and Actual - Animal Control 40 Schedule of Federal Financial Assistance 41 Auditor's Report on Internal Controls 42-44 Auditor's Report on Compliance With Laws and Regulations 45-46 Schedule of Findings and Questioned Costs 47 CERTIFIED PUBLIC ACCOUNTANT � 1904 SOUTH STREET BOAC 486 BLAIR, NEBRASKA 68008 October 30, 1986 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RESIDENCE: (402) 468-5253 OFFICE: (402) 4264080 I have examined 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, 1986, as listed in the table of contents. My examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. 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. In my opinion, the general purpose financial statements referred to above present fairly the financial position of the City of Blair, Nebraska, at July 31, 1986, and the results of its operations and the changes in financial position of its propriety fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Also, in my opinion, the combining, individual fund, and account group financial statements referred to above present fairly the financial position of each of the individual funds and account groups of the City of Blair, Nebraska, at July_31, 1986,and the results of operations of such funds and the changes in financial position of individual proprietary funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. 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 infor- mation has been subjected to the auditing procedures applied in the examination of the general purpose combining, individual fund, -1- Mayor and Members of the City Council October 30, 1986 Page 2 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. x 21 Edward W. Schroeder Certified Public Accountant -2- CITY OF BLAIR, NEBRASKA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JULY 31, 1986 ASSETS Cash Receivables: Billed user fees Special assessments Accrued interest Other Investments -at cost (unrestricted) Due from County Treasurer Due from other funds Inventory Prepaid expenses Restricted assets - cash and investments - at cost Property - net of accumulated depreciation, where applicable Amount available in Debt Service Amount to be provided for retire- ment of general long-term debt Contract receivable - OPPD Contract receivable - block grant TOTAL ASSETS Government Fund Types Special Debt General Revenue Service $193,648 $ 97,327 $ 54,244 - - 591,264 - 11,250 1,840 106,400 463,015 - 29,817 2,644 80,370 500,000 - $329,865 $1,074,236 $727,718 See Notes to Financial Statements. -3- Capital Improvement $146,559 171,760 4,874,102 $5,192,421 Proprietary Fund Types General Enterprise Insurance Funds Fund $ 146,997 $ 34,476 112,910 - 15,227 - 2,802 - 592,000 85,000 8,041 - 29,569 - 4,277 - 1,798,401 - Account Groups General Fixed Long-term Assets Debt 8,230,126 - $3,503,462 - - - - $726,678 - 7,436 $10,940,350 $119,476 $3,503,462 $734,114 CITY OF BLAIR, NEBRASKA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS JULY 31, 1986 LIABILITIES Accounts payable Accrued interest Accrued expenses Deposits payable Bonds payable Revenue bonds payable Lease payable Land contract payable Total liabilities Government Fund Types Special Debt General Revenue Service $ 8,845 $ 44,877 - - - $ 1,040 8,845 44,877 1,040 FUND BALANCES Contributed capital - Investment in general fixed asset - Retained earnings - Fund balance 321,020 Total fund balances 321.020 TOTAL LIABILITIES AND Proprietary Fund Types Capital Enterprise Improvement Funds $ 10,140 33,444 1,464 34,071 5,137,834 5,216,953 General Insurance Fund Account Groups General Fixed Long-term Assets Debt $605,000 81,114 48,000 734,114 4,320,934 - - - - , - - - $3,503,462 - - - 1,402,463 - - - 1,029,359 726,678 $5,192,421 - $119,476 - - 1,029,359 726,678 5,192,421 5,723,.397 119,476 3,503,462 - FUND BALANCES $329,865 $1,074,236 $727,718 $5,192,421 See Notes to Financial Statements. -4- $10,940,350 $119,476 $3,503,462 $734,114 CITY OF BLAIR, NEBRASKA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED JULY 31, 1986 General Fund Special Revenue Fund Variance Variance Favorable Favorable r i_ Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Taxes and special assessments $ 766,026 $ 793,040 $ 27,014 - - - Street revenues - - - $ 407,594 $ 332,150 $(75,444) Licenses and permits 19,567 23,904 4,337 - - - Charges for services 76,800 107,136 30,336 - - - Revenue sharing funds - - - 44,700 41,570 ( 3,130) Interest income 29,500 39,064 9,564 22,100 39,283 17,183 Development block grants - - - 356,000 883,128 527,128 Other revenues 2,300 37,884 35,584 5,600 1,698 ( 3,902) Total revenues 894,193 1,001,028 106,835 835,994 1,297,829 461,835 EXPENDITURES: Administration 235,222 223,848 11,374 - - - Contingency allowance 30,000 24,386 5,614 - - - Police Department 414,142 415,086 ( 944) - - - Cemetery 74,069 71,174 2,895 - - - Fire Department 223,017 217,432 5,585 - - Parks Department 58,422 52,004 6,418 - - - Library 109,383 104,679 4,704 - - - Supervised recreation 34,677 29,975 4,702 - - - Swimming pool 36,227 31,339 4,888 - - - Airport 6,587 5,652 935 - - - Landfill 41,990 34,362 7,628 - - - Animal control 31,236 30,062 1,174 - - - Development block grant - - - 400,000 417,207 (17,207) Revenue sharing projects - - - 75,400 15,887 59,513 Street - - - 681,461 533,563 147,898 Debt service: Redemption of bonds - - - - - - Bond and warrant interest - - - - - -_ Total expenditures 1,294,972 1,239,999 54,973 1,156,861 966,657 190,204 REVENUES OVER (UNDER) EXPENDITURES (400,779) (238,971) 161,808 (320,867) 331,172 652,039 OTHER FINANCING SOURCES (USES): Operating transfers - in 53,975 81,970 27,995 411,000 403,670 ( 7,330) Operating transfers - out ( 75,978) (77,489)1 511) (50,000) (50,000) - REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (422,782) (234,490) $188,292 40,133 684,842 $644,709 FUND BALANCE - July 31, 1985 555,510 555,510 344,517 344,517 FUND BALANCE - July 31, 1986 $ 132,728 $ 321,020 $ 384,650 $1,029,359 See Notes to Financial Statements, -5- I, Debt Service Fund Variance Favorable Budget Actual (Unfavorable) $ 85,000 $ 353 2,100 49,534 87,100 49,887 - 1,2,78 133,500 150,515 53,922 63,451 187,422 215,244 k ' (100,322) (165,357) 253,806 271,825 68,160) ( 68,160) 85,324 38,308 688,370 688,370 $ 773,694 $ 726,678 Capital Improvement Fund Variance Favorable Budget Actual (Unfavorable) $(84,647) - - 47,434 $ 5,000 $ 471,583 (37,213) 5,000 471,583 ( 1,278) (17,015) ( 9,529) (27,822) (65,035) 18,019 5,000 471,583 171,760 171,760 (1,113,218)(1,143,143) $466,583 466,583 466,583 (29,925) $(47,016) ( 936,458)( 499,800) $436,658 5,692221 5692,221 $ 4,755,763 $5,192,421 GENERAL FUND: Administration Police Cemetery Fire Park (_ Library Supervised recreation Swimming pool Airport Landfill Animal control SPECIAL REVENUE FUNDS - Street CAPITALIZED LEASE - Library TOTALS CITY OF BLAIR, NEBRASKA STATEMENT OF GENERAL FIXED ASSETS JULY 31, 1986 Land Buildings Vehicles Equipment Total $ 15,000 $ 645,239 $ 5,698 $110,063 $ 776,000 - - 68,114 3.1,615 99,729 115,000 18,084 3,500 16,575 153,159 - - 234,598 24,203 258,801 97,952 328,828 4,350 85,133 516,263 22,500 116,600 - 8,068 147,168 - 274 1,800 22,788 24,862 100,000 237,581 - 165,242 502,823 32,000 137,069 - 41,789 210,858 15,000 6,700 - 49,217 70,917 - - 2,650 1,744 4,394 10,000 40,400 198,584 286,100 535,084 203,404 - - 203,404 $407,452 $1,734,179 $519,294 $842,537 $3,503,462 See Notes to Financial Statements. -7- CITY OF BLAIR. NEBRASKA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED JULY 31, 1986 Balance Balance July 31, July 31, 1985 Additions Dispositions 1986 GENERAL FUND: Administration $ 746,877 $ 29,123 - $ 776,000 Police 86,011 13,718 - 99,729 Cemetery 128,857 25,489 $1,187 153,159 Fire 95,290 163,511 - 258,801 Park 509,855 13,138 6,730 516,263 Library 145,621 1,547 - 147,168 Supervised recreation 22,277 2,585 - 24,862 Swimming pool 502,823 - - 502,823 Airport 210,858 - - 210,858 Landfill 70,917 - - 70,917 Animal control 4,394 - - 4,394 SPECIAL REVENUE FUNDS - Street 483,822 52,462 1,200 535,084 CAPITALIZED LEASE - Library 203,404 - - 203,404 TOTALS $3,211,006. $301,573 $9,117 $3,503,462 See Notes to Financial Statements, -8- Year Ending July 31, 1987 1988 1989 1990 1991 1992 1993 1994 1995 CITY OF BLAIR, NEBRASKA STATEMENT OF GENERAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS BY YEAR OF MATURITY JULY 31. 1986 Principal Interest Requirements Requirements 195,000 36,829 80,000 30,091 85,000 24,698 60,000 19,823 70,000 15,198 40,000 9,660 45,000 6,360 15,000 2,550 15,000 1,290 TOTALS $605.000 $146.499 See Notes to Financial Statements. Total 231,829 110,091 109,698 79,823 85,198 49,660 51,360 17,550 16.290 $751,499 See Notes to Financial Statements. Balance July 31, 1986 $ 45,000 80,000 75,000 165,000 240,000 605,000 81,114 48,000 $734,114 CITY OF BLAIR, NEBRASKA STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT FOR THE YEAR ENDED JULY 31, 1986 Balance July 31, t Dated Description 1985 Additions Deductions Various purpose bond issue $ 85,000 - $ 40,000 '6/1/77 12/15/78 Various purpose bond issue 105,000 - 25,000 5/1/80 Various purpose bond issue 95,000 - 20,000 6/15/83 Various purpose bond issue 180,000 15,000 6/15/85 Various purpose bond issue _ 270,000 30,000 Total bond obligations 735,000 - 130,000 Capitalized lease 93,629 - 12,515 Stemmerman land contract 56,000 - 8,000 TOTAL $884.629 - $150.515 See Notes to Financial Statements. Balance July 31, 1986 $ 45,000 80,000 75,000 165,000 240,000 605,000 81,114 48,000 $734,114 CITY OF BLAIR, NEBRASKA COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS FOR THE YEAR ENDED JULY 31. 1986 See Notes to Financial Statements. -11- General Enterprise Insurance Funds Fund SOURCES OF WORKING CAPITAL: Working capital provided by operations: Net income (loss) $( 68,081) $34,668 Add items not requiring a current use of working capital - depreciation 296,540 - Total 228,459 34,668 Increase in deposits payable 300 - Decrease in restricted assets 145,427 - Total sources of working capital 374,186 34,668 USES OF WORKING CAPITAL: Decrease in deposits payable 920 - Additions to property - net 120,031 - Decrease in revenue bondspayable 269,263 - Total uses of working capital 390,214 - INCREASE (DECREASE) IN WORKING CAPITAL $( 16,028) $34,668 CHANGES IN WORKING CAPITAL COMPONENTS: Increase (decrease) in current assets: Cash $(265,739) $16,148 Accounts receivable- user fees 4,144 - Accounts receivable - other 225 - rAccrued interest receivable ( 1,489) - Investments 152,805 18,520 Inventory ( 6,676) - Prepaid expenses 838 - Total (115,892) 34,668 Decrease (increase) in current liabilities: Current portion of long-term debt 50,000 - Accounts payable 13,180 - Accrued interest 3,118 - Accrued expenses 33,566 - Total 99,864 - INCREASE (DECREASE) IN WORKING CAPITAL $( 16,028) $34,668 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 recog- nized 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. 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. BudQetary 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. 2. RESTRICTED ASSETS Restricted assets consist primarily of cash, certificates of deposit and savings accounts. The assets are restricted as follows: Held in trust per bond requirements $1,126,686 Bond and interest sinking funds 648,590 Utility deposit funds 31,166 Total restricted assets $1,806,442 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. General long-term debt, excluding bonds, consists of the following: Lease payable 10/1/75 6.00-7.00% Land contract payable 9/1/82 12% Amount Current Portion $81,114 $122754 $48,000 $ 8,000 CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS Continued 3. LONG-TERM DEBT, Continued Proprietary fund long-term debt consists of the following: Water: 4/1/80 7.00-7.50% 4/15/80 8.00-10.80% 7/15/80 5.00% 6/15/85 6.87% Totals Sewer: 11/15/74 5.20-6.00% 4. PENSION PLANS Current Amount Portion $ 485,000 $ 45,000 640,000 60,000 3,237,834 36,308 665.000 55.000 $5,027,834 $196,308 $ 1101000 $ 25,000 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 3% of gross wage in contributions from the City are invested with the Travelers. Insurance Company. 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, 1986 were $30,824 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 $29,366 were 12% of gross wage which complies with statutory requirements. The City contributed 6% of gross wage and the policemen contribute 6%. 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. During the year ended July 31, 1984, the City transferred police pension funds to an independent trustee for invest- ment. 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, 1986, -14- CITY OF BLAIR, NEBRASKA NOTES TO FINANCIAL STATEMENTS. Continued 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 aggreement 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 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 twenty equal quarterly installments, including accrued interest at 5% per annum, with payments beginning in the third fiscal year from the date of the loan. The loan will be completely repaid in seven years. Security for the loan is equipment per the financing statement on file dated May 2, 1986. The loan is guaranteed by Kelly Ryan and H. Wayne Smith. The asset for the loan corpus is accounted for in the Block Grant Fund and has accrued interest of $6,250 at July 31, 1986. s -15- CITY OF BLAIR, NEBRASKA COMBINING BALANCE SHEET - SPECIAL REVENUE FUNDS JULY 31, 1986 Street Fund CASH SAVINGS $ 48,310 INVESTMENTS 463,015 ACCRUED INTEREST RECEIVABLE 51000 DUE FROM COUNTY TREASURER 2,644 ECONOMIC DEVELOPMENT LOAN - Revenue- Sharing Fund $43,153 TOTAL $518,969 $43,153 LIABILITIES AND FUND BALANCES Block Grant Fund Total $ 5,864 $ 97,327 - 463,015 6,250 11,250 - 2,644 500,000 500,000 $512,114 $1,074,236 ACCOUNTS PAYABLE $ 44,877 - - $ 44,877 FUND BALANCE 474,092 $43,153 $512,114 1,029,359 TOTAL $518,969 $43,153 $512,114 $1,074,236 -16- CITY OF BLAIR. NEBRASKA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JULY 31. 1986 Revenue Block Street Sharing Grant Fund Fund Fund Total REVENUES: Revenue sharing funds - $41,570 - $ 41,570 Street revenues $ 332,150 - - 332,150 Development block grants - - $883,128 883,128 Interest on investments 31,637 1,396 6,250 39,283 Other revenues - 1,698 - 1,698 Total revenues 363,787 44,664 889,378 1,297,829 EXPENDITURES• Salaries 127,591 - - 127,591 FICA 9,066 - - 9,066 Retirement 4,633 - - 4,633 Employee insurance 19,039 - - 19,039 Engineering 2,871 - - 2,871 Auditing 895 510 - 1,405 Dues 182 - - 182 Utilities 5,161 - - 5,161 Telephone 811 - - 811 Travel 944 - - 944 Insurance 10,103 - - 10,103 Maintenance 24,179 - - 24,179 Street lighting 66,403 - - 66,403 Contingency reserve 1,093 - - 1,093 Collection fees to County Treasurer 653 - - 653 Sand, gravel and rock 5,750 - - 5,750 Gas, diesel and oil 9,529 - - 9,529 Materials and supplies 3,258 153 3,411 Development block grants - - 417,207 417,207 Rental 1,225 - - 1,225 Capital outlay: Construction contracts - 15,224 - 15,224 Motorized equipment 50,075 - - 50,075 Street improvements 190,102 - - 190,102 Total expenditures 533,563 15,887 417,207 966,657 REVENUES OVER (UNDER) EXPENDITURES (169,776) 28,777 472,171 331,172 OTHER FINANCING SOURCES (USES): Operating transfers -in 363,727 - 39,943 403,670 Operating transfers -out ( 50,000) - - (50,000) REVENUES OVER (UNDER) EXPENDITURES 143,951 28,777 512,114 684,842 - FUND BALANCE (DEFICIT) - July 31, 1985 330,141 14,376 - 344,517 FUND BALANCE - July 31, 1986 $ 474,092 $43,153 $512,114 $1,029,359 -17- 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. 1986 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 Papio NRD grant Total revenues EXPENDITURES: Salaries FICA Retirement Employee insurance Engineering Auditing Dues Utilities Telephone Travel Insurance Maintenance Street lighting Contingency reserve Collection fees to County Treasurer Budget Actual $ 248,760 $ 233,637 51,000 65,285 2,000 - 3,000 3,000 13,183 13,183 600 576 500 584 400 1,489 20,500 31,637 18,151 14,396 70,000 - 428,094 363,787 Variance Favorable $(15,123) 14,285 ( 2,000) 24) 84 1,089 11,137 ( 3,755) (70,000) (64,307) 140,947 127,591 13,356 10,035 9,066 969 4,392 4,633 ( 241) 21,432 19,039 2,393 3,000 2,871 129 877 895 ( 18) 190 182 8 5,250 5,161 89 533 811 ( 278) 500 944 ( 444) 7,805 10,103 ( 2,298) 25,501 24,179 1,322 74,300 66,403 7,897 2,000 1,093 907 653 ' ( 653) Sand, gravel and rock 11,500 5,750 5,750 Gas, diesel and oil 17,368 9,529 7,839 Materials and supplies 15,831 3,258 12,573 Rental 6,000 1,225 4,775 Capital outlay: Motorized equipment 63,000 50,075 12,925 Street improvements 271,000 190,102 80,898 Total expenditures 681,461 533,563 147,898 REVENUES OVER (UNDER) EXPENDITURES (253,367) (169,776) 83,591 OTHER FINANCING SOURCES (USES): Operating transfers -in 1, 367,000 363,727 ( 3,273) Operating transfers -out ( 50,000) ( 50,000) - REVENUES OVER (UNDER) EXPENDITURES 63,633 143,951 80,318 FUND BALANCE - July 31, 1985 3302141 3302141 _$ FUND BALANCE - July 31, 1986 $ 393,774 $ 474,092 is CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET (CASH BASIS) AND ACTUAL SPECIAL REVENUE FUNDS - REVENUE SHARING FUND FOR THE YEAR ENDED JULY 31, 1986 REVENUES: Revenue sharing funds Interest on investments Miscellaneous Total revenues EXPENDITURES: Auditing Materials and supplies Capital outlay: Police car Construction contracts Total expenditures REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE (DEFICIT) - July 31, 1985 FUND BALANCE - July 31, 1986 -19- Budget Variance Favorable Actual (Unfavorable) $ 44,700 $41,570 $(3,130) 1,600 1,396 ( 204) 5,600 12698 (3,902) 51,900 44,664 (7,236) 580 510 70 234 153 81 5,000 - 5,000 69,586. 15,224 54,362 75.400 15.887 59.513 (23,500) 28,777 $52,277 14,376 14,376 $( 9,124) $43,153 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, 1986 REVENUES: Community development grant Economic development grant Interest on loans Total revenues EXPENDITURES: Community development expenditures Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers -in REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE (DEFICIT) - July 31, 1985 FUND BALANCE - July 31, 1986 Budget Variance Favorable Actual (Unfavorable) $356,000 $383,128 $. 27,128 - 500,000 500,000 - 6,250 .6,250 356,000 889,378 533,378 400,000 417,207 (17,207) 400,000 417,207 (17,207) (44,000) 472,171 .516,171 44,000 39,943 ( 4,057) - 512,114 $512,114 -20- X519.114 (This page left blank intentionally) LIABILITIES AND FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE $411,931 $8,216,397 $2,312,022 $10-,940,350 Blair Apartments Water Sewer Total CURRENT LIABILITIES: Current portion of long-term debt - $ 196,308 $ 25,000 $ 221,308 Accounts payable - 6,365 3,775 10,140 Accrued interest - 32,069 1,375 33,444 Accrued expenses - 1,464 - 1,464 Total current liabilities - 2369206 30,150 266,356 DEPOSITS PAYABLE $ 2,905 31,166 - 34,071 LONG-TERM DEBT: Revenue bonds payable - unmatured - 5,027,834 110,000 5,137,834 Less current portion above - (196,308) (25,000) (221,308) Long-term debt -net - 4,831,526 85,000 4,916,526 Total liabilities 2,905 5,098,898 115,150 5,216,953 FUND BALANCE: Contributed capital - 1,550,100 2,770,834 4,320,934 Retained earnings 409,026 1,567,399 (573,962) 194022463 Total fund balance 409,026 3,117,499 2,196,872 5,723,397 TOTAL LIABILITIES AND FUND BALANCE $411,931 $8,216,397 $2,312,022 $10-,940,350 CITY OF BLAIR, NEBRASKA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS FOR THE YEAR ENDED JULY 31, 1986 Blair Apartments Water Sewer OPERATING REVENUES: User fees Sale of merchandise Rental Other Total EXPENSES: Personal services Operating expenses Materials and supplies Rental expense Depreciation Total OPERATING INCOME (LOSS) OTHER REVENUE (EXPENSE): Interest income Interest expense Operating transfers -in Operating transfers -out NET INCOME (LOSS) RETAINED EARNINGS (DEFICIT) - July 31, 1985 RETAINED EARNINGS (DEFICIT) - July 31, 1986 Total $ 398,451 $ 146,547 $ 544,998 - 6,795 1,893 8,688 $ 50,516 - - 50,516 512 181590 - 19,102 51,028 423,836 148,440 623,304 21,381 230,228 133,845 385,454 21,695 117,133 78,075 216,903 1,668 86,549 17,104 105,321 - 337 392 729 11,213 181,685 103,642 296,540 55,957 615,932 333,058 1,004,947 (4,929) (192,096) (184,618) (381,643) 2,613 204,295 14,849 221,757 (310,874) ( 6,887) (317,761) t,,,4321,574 88,277 409,851 - ( 285) - ( 285) (2,316) 22,614 ( 88,379) ( 68,081) 411,342 1,5441785 (485,583) 1,470,544 $409,026 $1,567,399 $(573,962) $1,402,463 -22- CITY OF BLAIR, NEBRASKA COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ENTERPRISE FUNDS FOR THE YEAR ENDED JULY 31, 1986 SOURCES OF WORKING CAPITAL: Working capital provided by operations: Net income (loss) Add items not requiring a current use of working capital - depreciation Total Increase in deposits payable Decrease in restricted assets Total sources of working capital USES OF WORKING CAPITAL: Decrease in deposits payable Additions to property - net Decrease in revenue bonds payable Total uses of working capital INCREASE (DECREASE) IN WORKING CAPITAL CHANGES IN WORKING CAPITAL COMPONENTS: Increase (decrease) in current assets: Cash Accounts---receivable-.---user:-fees Accounts receivable - other Accrued interest receivable Investments Inventory Prepaid expenses Total Decrease (increase) in current liabilities: Current portion of long-term debt Accounts payable Accrued interest Accrued expenses Total INCREASE (DECREASE) IN WORKING CAPITAL -23- Blair Apartments Water Sewer Total $(2,316) $ 22,614 $(88,379) $( 68,081) 11,213 181,685 103,642 296,540 8,897 204,299 15,263 228,459 300 - - 300 - 144,092 + 1,335 145,427 9,197 348,391 16,598 374,186 - 920- - 920 16,291 100,251 3,489 120,031 - 244,263 25,000 269,263 16,291 345,434 28,489 390,214 $(7,094) $ 2,957 $(111891) $( 16,028) $(8,406) $(273,641) $ 16,308 $(265,739) - 1,506 2,6.38 4,144 - ( 78) 303 225 - ( 3,501) 2,012 ( 1,489) - 193,660 (40,855) 152,805 - ( 6,526) ( 150) ( 6,676) - 262 576 838 (8,406) ( 88,318) (19,168) (115,892) - 50,000 - 50,000 1,312 4,904 6,964 13,180 - 2,805 313 3,118 - 33,566 - 33,566 1,312 91,275 7,277 99,864 $(7,094) $ 2,957 $(11,891) $( 16,028) 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, 1986 Budget Variance Favorable Actual (Unfavornblp) OPERATING REVENUES: Rental $47,500 $50,516 $ 3,016 Other 300 512 212 Total revenues 47,800 51,028 3,228 EXPENSES: Personal services: Salaries 17,836 17,533 303 FICA 1,270 1,243 27 Workman's compensation 483 265 218 H.A.L. insurance 2,289 2,288 1 Unemployment compensation 32 52 ( 20) Total 21,910 21,381 529 Operating expenses: Auditing 180 170 10 Printing and publication 150 88 62 Heating fuels 2,000 1,335 665 Utilities 9,000 7,394 1,606 Telephone 608 521 87 Insurance 1,998 2,338 ( 340) Maintenance 14,550 9,849 4,701 Contingency reserve 2,000 - 2,000 Refunds 800 - 800 Total 31,286 21,695 9,591 Materials and supplies 2,975 1,668 1,307 Total expenses 56,171 44,744 111427 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (8,371) 6,284 14,655 DEPRECIATION - (11,213) (11,213) OPERATING INCOME (LOSS) (8,371) ( 4,929) 3,442 OTHER REVENUE - Interest income 2,20.0 2,613 413 NET INCOME (LOSS) $(6,171) $(2,316) $ 3,855 -24- CITY OF BLAIR, NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - WATER FOR THE YEAR ENDED JULY 31. 1986 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES: User fees $401,683 $398,451 $(3,232) Sale of merchandise 7,000 6,795 ( 205) Forfeited discounts 4,500 4,929 429 Hydrant rental 12,000 12,000 - Other - 1,661 1,661 Total revenues425,183 423,836 (1,347) EXPENSES: Personal,services: Salaries 198,824 188,270 10,554 FICA 14,156 13,384 772 Workman's compensation 3,802 2,329 1,473 HAL insurance 22,656 21,569 1,087 Retirement (city share) 4,353 4,323 30 Unemployment compensation 323 353 30) Total 244,114 230,228 13,886 Operating expenses: T Legal fees 3,500 140 3,360 Auditing 1,875 2,018 ( 143) Engineering - - - Inspections - - - Consultants 1,000 1,613 ( 613) Employee appreciation 900 345 555 Postage 3,500 3,359 141 Printing and publications 1,000 408 592 Computer programming 2,000 509 1,491 Schools, travel and training 1,500 1,251 249 Dues 1,000 614 386 Utilities 75,000 70,890 4,110 Telephone 3,400 1,835 1,565 Vehicle insurance 536 482 54 Liability insurance 685 1,029 ( 344) Buildings and contents insurance 4,829 4,602 227 Employee bonds 545 413 132 Errors and omissions insurance 1,035 885 150 Radio maintenance 900 662 238 Office equipment maintenance 1,225 1,161 64 Motorized equipment maintenance 3,500 4,213 ( 713), Building maintenance 1,500 2,653 (1,153) Major maintenance 10,000 14,168 (4,168) Contingent reserve 4,000 - 4,000 Maintenance agreements 3,500 3,883 ( 383) Other operating expense 1,700 - 1,700 Total 128,630 117,133 11,497 -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. 1986 1wels Variance Favorable Budget Actual (Unfavorable) EXPENSES: Materials and supplies: Office supplies $ 1,650 $ 1,428 $ 222 Stores and supplies 5,500 1,665 3,835 Chemicals 35,000 27,684 7,316 Supplies for inventory 8,500 14,696 (6,196) Gasoline 4,184 3,358 826 Clothing allowance 759 214 545 Small tools 600 788 ( 188) Hydrants, meters, pipe 10,000 6,096 3,904 Water line replacement 29,OQO 30,620 (1,620) Other materials and supplies - - - Total 95,193 86,549 8,644 Rental expense - Office equipment 446 337 109 Total expenses 468,383 434,247 34,136 OPERATING INCOME BEFORE DEPRECIATION (43,200) (10,411) 32,789 DEPRECIATION (181,685) (181,685) OPERATING INCOME (LOSS) (43,200) (192,096) (148,896) OTHER REVENUES (EXPENSES): Interest income 65,720 204,295 138,575 Interest expense (208,779) (310,874) (102,095) Operating transfers - in 294,820 321,,574 26,754 Operating transfers - out - ( 285) ( 285) NET INCOME (LOSS) $108,561 $ 22,614 $(85,947) 1wels CITY OF BLAIR. NEBRASKA INDIVIDUAL STATEMENT OF REVENUES AND EXPENSES BUDGET (CASH BASIS) AND ACTUAL ENTERPRISE FUND - SEWER FOR THE YEAR ENDED JULY 31, 1986 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (95,282) (80,976) Variance DEPRECIATION - (103,642) Favorable OPERATING INCOME (LOSS) Budget Actual (Unfavorable) OTHER REVENUE (EXPENSE): OPERATING REVENUES: Interest income User fees $145,530 $146,547 $ 1,017 Sale of merchandise 1,500 1,893 393 Other - - - Total revenues 147,030 148,440 1,410 EXPENSES: Personal services: Salaries 117,227 109,815 7,412 FICA 8,347 7,805 542 Workman's compensation 2,669 909 1,760 H.A.L. insurance 11,859 11,411 448 Retirement (city share) 3,517 3,696 ( 179) Unemployment compensation 238 209 29 Total 143,857 133,845 10,012 Operating expense: Legal 1,500 - 1,500 Auditing 804 802 2 Employee appreciation 400 119 281 Postage 1,650 1,397 253 Printing and publication 450 8 442 Computer programming 1,500 325 1,175 School, travel and training 1,100 837 263 Dues 275 142 133 Utilities 48,000 49,756 (1,756) Telephone 1,357 609 748 Insurance 4,828 6,412 (1,584) Maintenance 15,550 17,567 (2,017) Contingent reserve 3,000 101 29899 Total 80,414 78,075 2,339 Materials and supplies 17,791 179104 687 Rental expense 250 392 ( 142) Total expenses 242,312 229,416 12,896 OPERATING INCOME (LOSS) BEFORE DEPRECIATION (95,282) (80,976) 14,306 DEPRECIATION - (103,642) (103,642) OPERATING INCOME (LOSS) (95,282) (184,618) ( 89,336) OTHER REVENUE (EXPENSE): Interest income 13,264 14,849 1,585 Interest expense ( 7,200) ( 6,887) 313 Transfer - in 121,995 88,277 33,718) NET INCOME (LOSS) $ 32,777 $(882379) $(121,156) ^97 - CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND REVENUES BUDGET (CASH BASIS) AND ACTUAL FOR THE YEAR ENDED JULY 31, 1986 Budget Actual Variance Favorable (T1 -F- ---I'l -" REVENUES: Taxes and special assessments: Property taxes $554,061 $ 531,489 $(22,572) Insurance tax 29,000 22,835 ( 6,165) Receipts in lieu of taxes 26,840 45,440 18,600 State aid 92,125 88,208 ( 3,917) Motor vehicle pro rata - 2,423 2,423 Homestead relief - 39,237 39,237 Franchise tax 64,000 63,408 ( 592) Total 766,026 793,040 27,014 Licenses and permits: Business licenses 14,792 16,760 1,968 Dog licenses 925 795 ( 130) Permits and fines 3,850 6,349 2,499 Total 19,567 23,904 4,337 Charges for services: Library 5,550 5,902 352 Landfill collections 27,000 28,665 1,665 Cemetery lots 3,500 8,690 5,190 Grave openings 9,000. 13,750 4,750 Swimming pool fees 14,000 21,899 7,899 f- Swimming pool lessons 2,000 3,942 1,942 Sales of fireworks 6,000 12,500 6,500 Building and land leases 5,000 7,345 2,345 Library user fees 3,000 2,385 ( 615) Rental 1,750 21058 308 Total 76,800 107,136 30,336 INTEREST INCOME 29,500 39,064 9,564 OTHER REVENUES: Reimbursements - CDBG - 5,177 5,177 Police lab fund 2,300 2,349 49 Sale of lots - 10,026 10,026 County inspector payments - 15,759 15,759 Other miscellaneous revenue - 4,573 4,573 Total 20300 37,884 35,584 TOTAL REVENUES $894,193 $1,001,028 $106,835 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ADMINISTRATION DEPARTMENT FOR THE YEAR ENDED JULY 31, 1986 -29- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $ 89,810 $ 85,,329 $ 4,481 Social security 16,394 6,075 319 Employee's insurance 35,807 33,803 2,004 Retirement 1,881 1,971 ( 90) OPERATING EXPENSES: Legal 23,300 25,151 (1,851) Building inspection 3,600 3,600 - Auditing 1,535 1,589 ( 54) Civil defense 1,800 1,800 - Custodial services 2,160 2,160. - Employee appreciation 1,400 1,030 370 Postage 1,200 1,050 150 Printing and publications 5,100 6,315 (1,215) Dues 3,000 2,912 88 Election expense 1,250 - 1,250 Programming 3,000 808 2,192 City utilities 2,500 2,177 323 Telephone 2,800 2,633 167 Travel expense 6,500 6,935 ( 435) Insurance and bonds 4,250 5,592 (1,342) Maintenance 4,100 2,609 1,491 Tree stump removal 16,000 15,925 75 Tobacco licenses 810 705 105 Chamber of Commerce 5,500 3,348 2,152 County Treasurer's collection fees 5,485 5,403 82 Miscellaneous - 55 ( 55) SUPPLIES 3,900 2,909 991 RENTAL EXPENSES - Office equipment 700 866 ( 166) CAPITAL OUTLAY: Office equipment 1,440 1,098 342 TOTALS $235,222 $223,848 $11,374 -29- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CONTINGENCY ALLOWANCE FOR THE YEAR ENDED JULY 31, 1986 -30- Variance Favorable Budget Actual (Unfavorable) RAILROAD CROSSING LIGHT AND GATE $ 2,951 PROFESSIONAL FEES 2,616 FIRE HALL FURNACE 1,220 BLACK ELK PARK SURVEY 600 VETS FIELD 12,884 MISCELLANEOUS 1,115 CAPITAL OUTLAY: Fire truck 3,000 TOTAL $30,000 $24,386 $51614 -30- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL POLICE DEPARTMENT FOR THE YEAR ENDED JULY 31, 1986 -31- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $237,122 $244,339 $(7,217) Social security 16,883 17,367 ( 484) Employees' insurance 30,193 29,227 966 Retirement 13,500 14,683 (1,183) OPERATING EXPENSES: Legal 11,600 10,463 1,137 Auditing 988 1,020 ( 32) Postage 240 361 ( 121) Printing and publications 1,050 781 269 Training 2,367 666 1,701 Telephone 4,086 3,581 505 Travel 1,085 761 324 Insurance 6,669 8,118 (1,449) Maintenance 7,200 8,388 (1,188) Miscellaneous 740 486 254 SUPPLIES: Office supplies 6,274 4,930 1,344 Gas and oil 11,000 7,503 3,497 Uniforms 8,711 7,728 983 Miscellaneous 2,050 1,890 160 RENTAL EXPENSE 33,204 39,076 (5,872) CAPITAL OUTLAY: Motor vehicles 17,500 12,155 5,345 Radio equipment 1,680 1,563 117 TOTALS $414,142 $415,086 $ 944) -31- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL CEMETERY FOR THE YEAR ENDED JULY 31, 1986 PERSONAL SERVICES: Salaries Social security Employees' insurance OPERATING EXPENSES: Legal Auditing Printing and publication Instrument recording Heating fuel Utilities Telephone Insurance Maintenance Miscellaneous SUPPLIES RENTAL EXPENSE PURCHASE OF CEMETERY LAND CAPITAL OUTLAY: Office equipment Motorized equipment Building TOTALS -32- Variance Favorable Budget Actual (Unfavorable) $24,811 $22,660 $ 2,151 1,767 1,597 170 1,763 1,639 124 200 - 200 336 340 ( 4) 400 96 304 50 6 44 200 - 200 800 795 5 428 369 59 792 1,205 ( 413) 3,500 4,081 ( 581) _ 7 ( 7) 3,197 2,495 702 10,200 9,375 825 - 1,020 (1,020) 600 - 600 7,900 7,405 495 17,125 18,084 959) $74,069 $71,174 $ 2,895 CITY OF BLAIR. NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL FIRE DEPARTMENT FOR THE YEAR ENDED JULY 31, 1986 -33- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES $ 2,500 $ 2,093 $ 407 OPERATING EXPENSES: Utilities and telephone 13,257 11,315 1,942 Insurance 6,388 5,630 758 Maintenance 7,550 8,384 ( 834) Miscellaneous 1,907 860 1,047 SUPPLIES: Gas and oil 1,815 2,066 ( 251) Safety equipment 4,000 1,741 2,259 Miscellaneous 200 32 168 HYDRANT RENTAL 12,000 12,000 - CAPITAL OUTLAY: Building 12,800 12,800 - Radio equipment 2,500 646 1,854 Fire equipment 2,100 1,871 229 Specialized equipment 156,000 157,994 (1,994) TOTALS $223,017 $2172432 $ 5,585 -33- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL PARK DEPARTMENT FOR THE YEAR ENDED JULY 31, 1986 -34- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $29,414 $26,207 $3,207 Social security 2,094 1,864 230 Employees' insurance 3,109 2,819 290 OPERATING EXPENSES: Utilties and telephone 3,096 2,870 226 Insurance 1,364 1,553 ( 189) Maintenance 5,700 4,607 1,093 Miscellaneous 515 437 78 SUPPLIES: Gas and oil 2,100 1,793 307 Miscellaneous 905 706 199 CAPITAL OUTLAY: Motorized equipment 6,125 6,065 60 Playground equipment 4,000 3,083 917 TOTALS $58,422 $52,004 $6,418 -34- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LIBRARY FOR THE YEAR ENDED JULY 31. 1986 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Auditing Postage Other office expense Utilities Telephone Travel Insurance Maintenance Custodial services SUPPLIES: Supplies Library materials CAPITAL OUTLAY - Office equipment TOTALS Budget $ 51,103 3,639 3,852 530 Actual $ 51,966 3,694 3,630 610 Variance Favorable $( 863) ( 55) 2.22 ( 80) 393 347 46 605 398 207 801 422 379 9,050 7,100 1,950 516 460 56 425 185 240 1,224 1,292 ( 68) 3,450 3,456 ( 6) 2,250 2,046 204 2,840 1,927 913 26,000 25,599 401 21705 1,547 1,158 $109,383 $104,679 $4,704 -35- CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL SUPERVISED RECREATION FOR THE YEAR ENDED JULY 31, 1986 PERSONAL SERVICES: Salaries Social security Employees' insurance OPERATING EXPENSES: Auditing Printing and publications Professional services Utilities Telephone Insurance Maintenance Little League program SUPPLIES: Gas and oil Recreation supplies Fireworks CAPITAL OUTLAY: Motorized equipment Aluminum bleacher boards TOTALS -36- Variance Favorable Budget Actual (Unfavorable) $14,224 $10,655 $3,569 1,080 710 370 279 259 20 280 255 25 440 96 344 - 700 ( 700) 3,617 4,051 ( 434) 250 262 ( ].2 ) 907 1,208 ( 301) 4,770 5,747 ( 977) 1,500 1,500 - 925 270 655 800 1,327 ( 527) - 350 ( 350) 2,605 2,585 20 3,000 - 3,000 $34,677 $29,975 $4,702 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL SWIMMING POOL FOR THE YEAR ENDED ,JULY 31, 1986 PERSONAL SERVICES: Salaries Social security Employees' insurance OPERATING EXPENSES: Auditing Printing and publications Utilities and telephone Insurance Maintenance State sales tax .Miscellaneous SUPPLIES AND REPAIRS: Chemicals Small tools Miscellaneous TOTALS _37- Variance Favorable Budget Actual (Unfavorable) $21,517 $17,992 $3,525 1,532 1,285 247 550 482 68 392 340 52 250 332 ( 82) 4,470 4,747 ( 277) 791 1,046 ( 255) 1,500 460 1,040 625 879 ( 254) - 4 ( 4) 2,000 1,529 471 1,900 1,824 76 700 419 281 $36,227 $31,339 $4,888 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL AIRPORT FOR THE YEAR ENDED JULY 31. 1986 Budget Actual PERSONAL SERVICES: Salaries $ 865 $2,021 Social security 62 134 Employees' insurance 41 36 OPERATING EXPENSES: Insurance 1,359 1,463 Maintenance 2,100 1,054 Utilities and telephone 847 617 Miscellaneous 313 147 RENTAL EXPENSE 1,000 180 TOTALS $6,587 $5,652 W1i� Variance Favorable $(1,156) ( 72) 5 104) 1,046 230 166 820 $ 935 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL LANDFILL FOR THE YEAR ENDED JULY 31. 1986 PERSONAL SERVICES: Salaries Social security Employees' insurance Retirement OPERATING EXPENSES: Auditing Printing and publication Telephone Utilities Insurance Maintenance Miscellaneous SUPPLIES: Gas, diesel and oil Miscellaneous RENTAL EXPENSE TOTALS -39- Budget $24,532 1,747 2,112 Variance Favorable Actual (Unfavornhle) $22,786 1,620 1,765 179 $1,746 127 347 ( 179) 23 85 ( 62) 325 250 75 415 346 69 464 554 ( 90) 1,007 1,115 ( 108) 3,250 1,407 1,843 - 22 ( 22) 4,200 2,692 1,508 1,185 831 354 2,730 710 2,020 $41,990 $34,362 $7,628 CITY OF BLAIR, NEBRASKA SCHEDULE OF GENERAL FUND EXPENDITURES BUDGET (CASH BASIS) AND ACTUAL ANIMAL CONTROL FOR THE YEAR ENDED JULY 31. 1986 -40- Variance Favorable Budget Actual (Unfavorable) PERSONAL SERVICES: Salaries $19,476 $19,400 $ 76 Social security 1,387 1,379 8 Employees' insurance 2,686 2,696 ( 10) OPERATING EXPENSES: Veterinary expense 275 369 ( 94) Utilities and telephone 1,588 1,559 29 Insurance 484 449 35 Maintenance 1,500 1,332 168 Miscellaneous 1,748 1,067 681 SUPPLIES: Gas and oil 620 652 ( 32) Chemicals 55 7 48 Uniforms 572 520 52 Miscellaneous 845 632 213 TOTALS $31,236 $30,062 $1,174 -40- CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET BOX 486 BLAIR, NEBRASKA 68008 October 30, 1986 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RGSIDLNCE: (402) 468-5253 OFFICE: (402) 426-4080 I have examined the general purpose financial statements of the City of Blair, Nebraska, for the year ended Jul'y 31, 1986, and have issued my report thereon dated October 30, 1986. As part of my examination, I made a study and evaluation of the internal control systems, including applicable internal administrative controls, used in administering federal financial assistance programs to the extent I considered necessary to evaluate the systems as required by generally accepted auditing standards, the standards for finan- cial and compliance audits contained in the Standards for Audit 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. For the purpose of this report, I have class- ified the significant internal accounting and administrative controls used in administering federal financial assistance programs in the following categories: Accounting Controls Cycles of the Entities' Activity Treasury or financing Revenue/receipts Purchases/disbursements External financial reporting Financial Statement Captions Cash and cash equivalents Receivables Inventory Property and Payables and Debt Fund balance equipment accrued liabilities -42- 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 management of the City of Blair, Nebraska, is responsible for establishing and maintaining internal control systems used in administering federal financial assistance programs. In fulfilling that responsibility, estimates and judgments by management are re- quired to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in ad- ministering federal financial assistance programs are to provide management with reasonable, but not absolute, assurance that, with respect to federal financial assistance programs, resource use is consistent with laws, regulations, and policies; resources are safeguarded against waste, loss, and misuse; and reliable data are obtained, maintained, and fairly disclosed in reports. Because of inherent limitations in any system of internal accounting and administrative controls used in administering federal financial assistance programs, errors or irregularities may never- theless occur and not be detected. Also, projection of any eval- uation of the systems 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 included all of the applicable control categories listed above. During the year ended July 31, 1986, the City of Blair, Ne- braska expended 95% of its total federal financial assistance under major federal financial. assistance programs. With respect to internal control systems used in administering major federal financial assis- tance programs, my study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and are being followed satisfactorily, and evaluating` any weaknessess. With respect to the internal control systems used solely in j r administering the nonma or federal financial assistance programs of the City of Blair, Nebraska, my study and evaluation was limited to a preliminary review of the systems to obtain an understanding of -43- Mayor and Members of f---, the City Council Page 3 the control environment and the flow of transactions through the accounting system. My study and evaluation of the internal control systems used solely in administering the nonmajor federal financial assistance programs of the City of Blair, Nebraska, did not extend beyond this preliminary review phase. My study and evaluation was more limited than would be nec- essary to express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Blair, Nebraska. Accordingly, I do not express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Blair, Nebraska. Further, I do not express an opinion on the internal control systems used in administering the major federal financial assistance pro- grams of the City of Blair, Nebraska. Also, my examination, made in accordance with the standards mentioned above, would not necessarily disclose material weaknesses in the internal control systems used solely in administering non - major federal financial assistance programs. However, my study and evaluation and my examination disclosed no conditions that I believe result in more than a relatively low risk that errors or irregularities in amounts that would be material to a federal financial assistance program may occur and not be detected within a timely period. F Edward W. Schroeder Certified Public Accountant -44- CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET BOX 486 BLAIR, NEBRASKA 68008 October 30, 1986 Honorable Mayor and Members of the City Council City of Blair, Nebraska Gentlemen: RESIDENCE: (402) 468-5753 OFFICE: (402) 426-4080 I have examined the general purpose financial statements of the City of Blair, Nebraska, for the year ended July 31, 1986, and have issued my report thereon dated October 30, 1986. My exami- nation was made in accordance with generally accepted auditing standards; the standards for financial and compliance audits con- tained in the Standards for.Audit 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 circum- stances. 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 each major federal financial assistance program and certain nonmajor federal financial assistance programs. The purpose of my testing of transactions and records from those federal financial assistance programs was to obtain reasonable assurance that the City of Blair, Nebraska, had, in all material respects, administered major programs, and executed the tested nonmajor program transactions, in compliance with laws and regu- lations, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which I believe could have a material effect on the allowability of program expend- itures. My testing of transactions and records selected from major federal financial assistance programs disclosed instances of noncompliance with those laws and regulations. All instances of noncompliance that I found and the programs to which they relate are identified in the accompanying schedule of findings and ques- tioned costs. In my opinion, subject to the effect of the ultimate resolution of those instances of noncompliance referred to in the preceding paragraph, for the year ended July 31, 1986, the City of Blair, -45- Mayor and Members of the City Council Page 2 r' Nebraska, administered each of its major federal financial assis- tance programs in compliance, in all material respects, with laws and regulations, including those pertaining to financial reports 5 and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. The results of my testing of transactions and records selected from nonmajor federal financial assistance programs indicate that for the transactions and records tested the City of Blair, Nebraska, complied with the laws and regulations referred to in the second paragraph of my report, except as noted in the accompanying schedule of findings and questioned costs. My testing was more limited than would be necessary to express an opinion on whether the City of Blair, Nebraska, administered those programs in compliance in all material respects with those laws and regulations noncompliance with which I believe could have a material effect on the allowability of program expenditures; however, with respect to the transactions and records that were not tested by me nothing came to my attention to indicate that the City of Blair, Nebraska, had not complied with laws and regulations other than those laws and regulations for which I noted violations in my testing referred to above. Edward W. Schroeder Certified Public Accountant -46- CITY OF BLAIR, NEBRASKA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JULY 31, 1986 Program Finding/Noncompliance Federal. Revenue The City contracted with certain construction Sharing companies to provide paving of City parking areas which was paid for with federal revenue sharing funds. The contracts for this work did not include necessary requirements that contractors adhere to the Davis -Bacon Act. The total funds expended on this project were $15,224. The City has made corrections in their contracts to include this requirement in the future. Community Development During the fiscal year ended July 31, 1986 Block Grant ($400,000) the City held excess Federal Development Block Grant funds beyond the recommended period. Excess grant funds of $28,348 were held seventeen days. The City has imple- mented better cost estimating procedures to insure excess requests for funds do not occur in the future. Economic Development The grant requires that the grantee file Block Grant ($500,000) quarterly reports with the appropriate agency by the tenth day following the end of the quarter. The quarterly report for the quarter ending June 30, 1986 for this grant was delinquent. The appropriate City personnel has set up informational meetings with the State grant agency to secure necessary pro- cedures in filing accurate and timely reports. Economic Development The grant was used to make a loan which was Block Grant ($500,000) secured by certain equipment. The grant document required that the City obtain proof of insurance on the equipment to document the coverage and that the City was a named insured. This proof of insurance was not available in the City records. I suggest that this be obtained and updated on insurance anniversary dates. The City Attorney has been instructed to obtain this and is in the process of obtaining it. -47- CITY OF BLAIR, NEBRASKA MANAGEMENT LETTER .JULY 31, 1986 EDWARD W. SCHROEDER November 3, 1986 Honorable Mayor amd Members of the City Council Citv of Rlair Blair, Nebraska Gentlemen: In connection with my examination of the financial state- ments of the various funds and account groups of the City of Blair as of July 31, 1986, I have made a review of accounting procedures and internal control. While the primary objective of such a review is to afford me a basis of determining the scope of my audit procedures, it nevertheless presents me with an opportunity to submit, for management's consideration, suggestions for changes in procedures which, in my opinion, would strengthen internal control or contribute to the improve- ment of operating efficiency. The comments in this letter are based upon observations made in the course of such review. The review was not designed for the purpose of expressing an opinion on internal accounting control, and it would not necessarily disclose all weaknesses in the system. The matters discussed herein were considered during my examination of the above-mentioned financial statements, and they (lid not modify the opinion expressed in my r.eport on those financial statements. However, I offer for your review the suggestions, as noted on the following pages and my proposed solution thereto. The "Action Taken" column of the letter has been provided for the City's staff to note the corrective measures they intend to implement with regard to each comment. If you have any questions regarding these or any other matters, please feel free to contact me. Sincerely, Edward W. Schroeder Certified Public Accountant SECTION A MATERIAL WEAKNESSES IN INTERNAL ACCOUNTING CONTROLS (MATTERS REQUIRING CORRECTIVE ACTION) NONE - (Considering the fact that this review was not designed for the purpose of expressing an opinion on internal accounting control as explained in paragraph two of my letter) SECTION B OTHER CONSTRUCTIVE SUGGESTIONS FOR IMPROVEMENT OF OPERATIONAL EFFICIENCY AND INTERNAL ACCOUNTING CONTROL SAFEGUARDING UNUSED CHECKS The City of Blair uses checks to make payments on its obligations. Though the checks have certain built in safeguards such as double sig- natures the blank checks in the wrong hands can be forged and misused thus causing a loss or in- convenience to the -City. I suggest that unused checks be. kept in the City's safe during non- working hours to avoid the forms being misused. OUTSTANDING PURCHASE ORDERS The City requires a purchase order be submitted to vendors for purchases over a set dollar amount. The purchase orders issued are subse- quently matched up to invoices for the items purchased. I noted during my examination that certain purchase orders were issued but no in- dication was given that the items were ever received. I suggest that open purchase orders over a certain age be followed up on to determine the status of the order. INVENTORY REQUEST FORMS The City requires that inventory request forms be completed before employees remove items from in- ventory for use. The current procedure does not require employee signature on the forms. I rec- ommend that the requesting employee sign the request for proper monitoring of inventory flow. UTILITY DEPOSITS When the City receives payment for utilities the payment is deposited and the applicable stub is accumulated with others for batch entry into the computerized billing system. The process of batch entry therefore may cause utility receipts posted to differ from deposit amounts. I suggest that a procedure be imple- mented whereby deposit amounts be reconciled with Utility Receipt Report totals and noted on the report. This will provide proper audit trail from utility deposits to individual accounts credited with the payment. ACTION TAKEN Blank checks are stored in vault. Have had problems with combination lock and is being repaired. Some purchases are not completed timely due to back orders. However,, the City Staff does work with Department Heads on a followup basis. Forms are now being signed as recommended. Corrected on the spot!! Corrected on the Spot. Batch Posting now agrees with daily deposits!! SECTION B OTHrR CONSTRUCTIVE SUGGESTIONS FOR TMPROVEMENT OF OPERATIONAL EFFICIENCY AND INTERNAL ACCOUNTING CONTROL UNPAID [3ONDS The Washington County Treasurer's office was notified in July of 1985 that all bonds in the issue dated May 1, 1980 were to be called and paid. During my review of the City's bond fund at the County Treasurer's office I noted that the bonds were not paid. I also noted that interest was paid on the bonds that should not have been and was charged to the City of Blair's bond fund. I suggest that this matter be fol- lowed up with the County Treasurer's office and interest improperly paid be returned to the City of Blair. PETTY CASH RECEIPT DOCUMENTATION The City of Blair reimburses its employees for reasonable City business and entertainment ex- penses. The employees are required to provide certain information and receipts to obtain re- imbursement. I noted during my examination that certain requests did not include all required information. The following must be supplied to insure proper tax and reimbursement handling. A. B. C. D. E. DATE DESCRIPTION WHERE AMOUNT (e.g. "lunch") BUSINESS PURPOSE/RELATIONSHIP FEDERAL FINANCIAL ASSISTANCE PROGRAM FINDINGS ACTION TAKEN The City Administrator, Attorney, and CPA will look into this matter and reclaim any funds due to the City. Not sure at this time whether or not the Count has funds that legally belongs to the City. Petty Cash receipts have been in compliance with this recommendation in the most part. The City will however insure ongoing compliance as recommended. The findings noted in regard to the Federal Programs Any deficiences we had examined are presented on the Schedule of Findings in any of our federal within the Single Audit Report dated October 30, Grant Programs were 1986. All action taken regarding the findings is resolved with respective documented there. agencies when detected. SUPERIOR GRANT FILES The Department of Economic Development provides Due to excellent guidance on general files helpful in administering team effort of City Block Grants. I noted that the files maintained Staff. on the City's grants during the past year were well organized and the staff involved did a superior job in maintaining those records.