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HomeMy WebLinkAbout4.02 Financial Audit 1984-85 CITY OF DUBLIN - AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 27, 1986 SUBJECT Fiscal Year 1984-85 - City Audit EXHIBITS ATTACHED 1984-85 Financial Audit ; Management Letter ; Budget Change Forms RECOMMENDATION 1) Approve Budget Changes 2 ) Accept 6/30/85 Financial Statement FINANCIAL STATEMENT: See Below DESCRIPTION Financial Statements The City Auditor has completed his review of the City' s financial records for Fiscal Year 1984-85 . As indicated in the Auditor ' s Financial Statements, the City' s total revenues for Fiscal Year 1984-85 were $8 , 556 ,346 . This is approximately $1, 205 , 704 or 16 . 4% higher than the amount estimated in the 1984-85 Budget . This difference is primarily attributable to the following factors : 1 . Sales Tax was $730 ,866 higher than estimated as a result of the City winning its lawsuit with the County ( $518 , 157 ) and an improved level of retail sales throughout the business district ( $212, 709 ) . 2 . The creation of a Transient Occupancy Tax in October , 1984 generated $140 , 290 during Fiscal Year 1984-85 , which was not anticipated at the time the Budget was adopted. 3 . Building Permit issuance was stronger than anticipated, resulting in $96 , 059 in additional fees . 4 . Revenue from investment of reserves was $370 ,572 more than estimated. This was due to increased revenues, the non-completion of several capital projects and keeping operating expenses below Budget . 5 . The City sold right-of-way to Barratt Development realizing $124 ,884 that was not anticipated. 6 . The creation of three ( 3 ) assessment districts resulted in an additional $137 , 145 in revenue (not including interest ) . 7 . Charges for planning and engineering services were $96 , 394 higher than anticipated due to the high level of development activity. These increased revenues were offset by less revenues in the following major revenue categories : 1 . Park & Recreation fees were $123 , 122 less than estimated due to some unsuccessful programming during Fiscal 1984-85 and overestimating fees in the 1984-85 Budget . 2 . FAU funds were $189 , 798 less than anticipated due to the lack of progress on San Ramon Road Phase II . 3 . Park Dedication fees were $187 ,609 less than anticipated in the Budget because fees for a major project were deposited with the City during the last month of Fiscal Year 1983-84 instead of Fiscal 1984-85 as was anticipated in the Budget . ---------------------------------------------------------------------------- COPIES TO: ITEM N0. �♦ 4 . Contributions for capital projects were $107 , 800 less than anticipated due to 'the lack of progr on several capital projc 3 . Total actual expenditures for Fiscal Year 1984-85 were $4 , 985 , 502 as compared to $8 , 250 ,570 budgeted. The differences between the Adopted Budget and Actual Expenditures are shown below by major expenditure category: BUDGET ACTUAL % DIFF General Government $ 439 , 760 $ 375 , 462 ( 14 . 6% ) Public Safety 1, 562, 410 1, 495 , 834 ( 4 . 3% ). Transportation 391,968 346 ,740 ( 11 . 5% ) Health & Welfare 8 , 925 1, 275 ( 85 . 7% ) Culture & Leisure Services 323 , 703 220 ,453 ( 31 . 9% ) Community Development 701, 663 661 ,683 ( 5 . 7% ) Capital Projects 4 , 822 , 141 1 , 884 ,055 ( 60 . 9% ) Total $8 , 250 ,570 $4 ,985 , 502 ( 39 . 6% ) As indicated above, the primary reason for expenditures being less than the Adopted 1984-85 Budget relates to several capital projects not proceeding as fast as anticipated. The major capital expenditures which were delayed included: 1 . Sewage Facility Expansion 2 . Dublin Boulevard Utility Undergrounding 3 . Downtown Street Light Additions 4 . San Ramon Road Phase I & II 5 . Alcosta -Boulevard, Dublin Court, Clark Avenue and Stagecoach Road Traffic Signals 6 . Major Arterial Landscaping Prior to the end of the Fiscal Year 1984-85 , the City Council authorized the appropriation of the City ' s year-end fund balance to the Street Improvement Reserve and the Reserve for Authorized Projects . As of June 30 , 1985 , the City' s total reserves are as follows : Reserve General Traffic Gas Tax CDBG Park Capital Assessmt Safety Dedicatn Projects Districts Total Street Improvement $7,888,270 $ -0- $221,102 $ -0- $ -0- $ -0- $ -0- $8,109,372 Facility Acquisition & Construction 400,000 400,000 Authorized Projects 29,452 (13,277) 30,000 777,488 434,942 6,072 1,264,677 Total $8,317,722 $(13,277)$221,102 $30,000 $777,488 $434,942 $6,072 $9,774,049 The City' s year-end reserves are $3 , 570 ,850 greater than they were at the end of Fiscal Year 1983-84 . Budget Changes During the closing of the 1984-85 Accounting Records, the Auditor indicated that the City should be accounting for accrued vacation as an expense rather than as a liability. This necessitates a budget change ( see attached) . It was also noted that two payments on the Village Parkway Landscape & Sidewalk Project were improperly recorded to 1985-86 instead of 1984-85 . It was recommended that this be corrected with a budget change ( see attached) . It is recommended that the City Council approve these budget changes . Management Letter The Auditor has made several recommendations regarding the City ' s financial system. The City has either complied with these recommendations or is working toward compliance. In response to Recommendation #5 , the Auditor is requesting one written report which accommodates all of those features identified for investment control . At the time of the Audit, Staff was tracking certificate of deposit maturities and rollovers, and was checking- off interest income on each certificate of deposit as it was received. Audit Committee The Audit Committee has met with the Auditor and will be able to discuss the results of that meeting, if necessary. 1 CITY OF DUBLIN FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1985 With Report of Certified Public Accountant Perry H. Carter, Certified. Public Accountant 1 TABLE OF CONTENTS Page REPORT OF CERTIFIED PUBLIC ACCOUNTANT 1 FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) } and Actual - General, Special Revenue and Capital Projects Fund Types 4 i Notes to Financial Statements 5 i FINANCIAL STATEMENTS OF INDIVIDUAL FUNDS GENERAL FUND Balance Sheet 12 Statement of Revenues, Expenditures and Changes in Fund Balance 13 t t SPECIAL REVENUE FUNDS Combining Balance Sheet 16 1 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 18 i i CAPITAL PROJECTS FUNDS a a Combining Balance Sheet 21 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 30 Perry H. Carter, Certified Public Accountant r x 64�: Y .e. f. - r 'ltF uCS.C.:ih•«n,:T'�. G.+.., n ^ �'�Amehe'u Ott '� _ n Y.'.; 1 / TABLE OF CONTENTS Page SPECIAL ASSESSMENT FUNDS Combining Balance Sheet 40 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 41 GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets by Sources 43 I i Perry H. Carter, Certified Public Accountant i PERRY H. CARTER, C.P.A. CERTIFIED PUBLIC ACCOUNTANT 24326 MISSION BOULEVARD SUITE 4 HAYWARD,CALIFORNIA 94541 (415) 537-1835 REPORT OF CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor, Members of the City Council and City Manager City of Dublin Dublin, California I have examined the combined financial statements of the City of Dublin, California and its combining and individual fund finan- cial statements as of and for the year ended June 30, 1985 . 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. In my opinion, the combined financial statements referred to above present fairly the financial position of the City of Dublin, California at June 30 , 1985, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceeding year. Also, in my opinion, the combining and individual fund financial statements referred to above pre- sent fairly the financial position of the individual funds of the City of Dublin, California at June 30, 1985 and their results of operations for the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. PERRY H. CARTER November 8, 1985 CITY OF DUBLIN COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1985 Account Governmental Fund Types Group General Total Special Capital Special Fixed (Memorandum General Revenue Projects Assessments Assets Only) ASSETS Cash and investments $ 7,877,504 $ 1 ,033,354 $ 923,162 $ 135,467 $ $ 9,969,987 Y. Receivables: Taxes 8,894 Accounts 57,175 8,894 51 57,226 Accrued interest 151 ,038 151 ,038 Due from other governments 458,311 33,403 7,880 499,594 Due from other funds 282,033 282,033 Prepaid expenses 79,384 79,384 Machinery and equipment 3,545 153,545 15 Improvements 1 ,092 1 ,092 $ 8�914�339 $ 1066.757 $ 931 ,042 $ 13 .518 $ 154.637 $ 1 ,202,293 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 283,914 $ 31 ,454 $ 304,057 $ 23,196 $ $ 642,621 Accrued wages 17,147 17,147 Accrued vacations 16,039 16,039 Deposits 279,517 36,250 315,767 Due to other funds _ 19,990 192,043 70,000 282,033 596,617 51 ,444 496,100 129,446 1 ,273,607 FUND EQUITY Investments in general fixed assets Fund balance: 154,637 154,637 Reserved for street improvement 7,888,270 221 ,102 8,109,372 Reserved for authorized expenditures/ projects 29,452 794,211 434,942 6,072 1 ,264,677 Reserved for facility design and acquisition 400,000 400,000 8,317,722 11015,313 434,942 6,072 154,637 9,928,686 TOTAL LIABILITIES AND FUND EQUI'PY $ 8,91439 $ 1G066�757 $ 931 ,042. $ U5,518 $ 15L4,67 $ 11202,293 j See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant CITY OF DUBLIN COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 1985 Special Capital Special Total General Revenue Projects Assessment (Memorandum Only) REVENUES Taxes $ 4,738,818 $ $ $ $ 4,738,818 Licenses and permits 333,982 333,982 Intergovernmental 785,881 671 ,049 1 ,456,930 Charges for services 260,217 260,217 Use of money and property 909,651 85,337 9,275 1 ,004,263 Fines and forfeits 15,162 53,139 68,301 t Other revenue 149,099 217,391 190,200 556,690 Special assessment 137,145 137,145 7,192,810 1 ,026,916 190,200 146,420 8,556,346 EXPENDITURES k: General government 361 ,392 361 ,392 Public safety 1 ,317,734 76,661 100,460 1 ,494,855 Highways and streets 65,571 252,739 937 319,247 1 Health and welfare 8,892 8,892 Community development 602,567 602,567 Culture and leisure 215,696 215,696 ` Capital outlay 30,308 29,534 1 ,884,054 38,951 1 ,982,847 2,593,268 367,826 1 ,884,054 140,348 4,985,496 .i� REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 4,599,542 659,090 (1 ,693,854) 6,072 3,570,850 ?" OTHER FINANCING SOURCES (USES) Operating transfers in 26,978 1 ,671 ,928 1 ,698,906 Operating transfers (out) (1 ,099,806) ( 373,752) ( 225,348) (1,698,906) r TOTAL OTHER FINANCING SOURCES (USES) (1 ,072,828) ( 373,752) 11446,580 REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES AND OTHER USES 3,526,714 285,338 ( 247,274) 6,072 3,570,850 ' FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 4,791 ,008 729,975 682,216 6,203,199 FUND BALANCES, END OF YEAR $ 813172 $ 1015,313 $ 3i934�942 $ _ 6,OZ2 $ 9.774.099 - _ - - - See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -3- ,. CITY OF DUBLIN COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL, SPECIAL REVENUE AND CAPITAL PROJECTS FUND TYPES Year Ended June 30, 1985 General Fund _ Special Revenue Fund Types _ Capital Pro Budget Actual Variance iect Fund Types REVENUES Budget Actual Variance _ Budget Actual Variance Taxes $ 3,811 ,000 $ 4,738,818 $ 927,818 $ $ $ $ Licenses and permits 234,850 333,982 99,132 $ $ Intergovernmental 742,000 785,881 43,881 888,292 671 ,049 (217,243) Charges for services 281 ,000 260,217 ( 20,783) Fines and forfeits 6,000 15,162 9,162 55,000 53,139 ( 1 ,861 ) Use of money and property 571 ,500 909,651 338,151 33,500 85,337 51 ,837 Other revenue _ 29,500 149,099 124,599 405,000 217,391 609) 298000 190200 (187, , , (_ 107,800) 5,670,850 7,192,810 1,521 ,960 11381 ,792 1,026,916 (354,876) 298,000 190,200 ( 107,800) EXPENDITURES General government 419,040 361 ,392 57,648 Public safety 1 ,362,595 1 ,316,459 46,136 81 ,990 76,661 5,329 Highways and streets 67,972 65,571 2,401 265,616 252,739 12,877 Health and welfare 8,925 1 ,275 7,650 8,892 8,892 Community development 642,071 602,567 39,504 12,000 Culture and recreation 310,203 215,696 99,507 12,000 Capital outlay 53,893 30,308 23,535 95,500 29,534 15,966 4,814,035 1 ,884,054 2,929,981 i. 2,864,649 2,593,268 271 ,381 413,998 367,826 46,172 4,814,035 11884,054 2,929,981 REVENUES GREATER (LESS) THAN EXPENDITURES 2,806,201 4,599,542 1 ,793,341 967,794 659,090 (308,704) (4,516,035) (1 ,693,854) 2,822,181 OTHER FINANCING SOURCES (USES) Operating transfers in 26,978 26,978 Operating transfers 3,529,100 1 ,671 ,928 1 ,857,172 ; (out) (2,924,272) (1,099,806) 1 ,824,466 ( 630,500) ( 373,752) 256,748 ( 225,348) ( 225,348) (2,897,294) (19072,828) 1 ,824,466 ( 630,500) ( 373,752) 256,748 3,303,752 1 ,446,580 1 ,857,172 9Y:. REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES AND OTHER USES ( 91 ,093) 3,526,714 3,617,807 337,294 285,338 ( 51 ,956) (1 ,212,283) ( 247,274) 965,009 FUND BALANCES, BEGIN- ! ` NING OF YEAR (NOTE 11 ) 4,791 ,008 41791 ,008 _ 729,975 729,975 682,216 682,216 FUND BALANCES, END OF YEAR 9 699 915 $ �_,__ $ 8,317722 $ 3,_617807 $ 1 ,067,269 $ 1 ,015E313 $( 51 956) $( _530-�067)$ 4 _ $34 942 5,009 -__ -- __- - _9.6 See accompanying notes to financial statements. Perry 11, Carter, Certified Public Accountant +c.,ao«eeia�+ra,rs-ztrtin ..rt-cttx-...—• .,. :ti CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1985 NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Dublin was incorporated February 1 , 1982 under the Municipal Organization Act of 1977. The City operates under a Council-Manager form of government and provides services to resi- dents primarily by contracting with other governmental agencies and private contractors. The accounting policies of the City of Dublin conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies : A -- FUND ACCOUNTING The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expen- ses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending act' vities are controlled. The funds required by the City of Dublin are grouped, in the financial statements of this report, into three generic fund types and one account group as follows: GOVERNMENTAL FUNDS General Fund - The general fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes. Capital Projects Funds - Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital projects (other than those financed by proprietary funds, special assessment funds and special reve- nue funds ) . Special Assessment Funds - Special assessment funds. are used to account of the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. t :2 Perry H. Carter, Certified Public Accountant t� ,a -5- l t 1 CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1985 Account Group - General fixed assets are recorded as expenditures in the General Fund, Special Revenue Funds, and the Capital Projects Funds at the time of purchase. Such assets are accounted for in the General Fixed Assets account group. Depreciation is not provided for in the General Fixed Assets account group. All fixed assets are valued at historical cost. Donated assets are valued at their estimated fair market value at the date donated. The City has elected not to capitalize "improvements other than buildings" which would consist of nonenterprise expenditures relating to roads, bridges, curbs, gutters, streets, sidewalks, drainage systems, and lighting systems. The account group is not a fund. Consequently, it is concerned with the measurement of financial position only and not the results of operations. i B -- BASIS OF ACCOUNTING z Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. i All governmental funds and expendable trust funds are accounted ! for using the modified accrual basis of accounting. Their reve- nues are recognized when they become measurable and available as net current assets. Taxpayer assessed income, gross receipts, and sales taxes are considered "measurable" when in the hands of intermediary collecting governments and are recognized as revenue at that time. Anticipated refunds of such taxes are recorded as liabilities and reductions of revenue when they are measurable a and their validity seems certain. Expenditures are generally recognized under the modified accrual basis of accounting which is when the related fund liabi- lity is incurred. The City does not currently require the use of other than the general fund, special revenue fund, special assessment and capi- tal projects fund types. However, at such times as may be re- quired, proprietary or other funds will be used. Perry H. Carter, Certified Public Accountant -6- TCITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1985 C -- BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the financial statements; 1 . Prior to June 30, the City Manager submits to the City Coun- cil a proposed operating budget for the fiscal year commencing the following July 1. The operating budget in- cludes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to July 1 , the budget is legally enacted through pas- sage of an ordinance. 4. The City Manager is authorized to transfer budgeted amounts up to $2,500 within an activity, within any fund; however, any other budget transfer must be approved by the City Council. 5. Formal budgetary integration is employed as a management control device during he � revenue funds and capital year for the general fund, special p ital projects funds. ! 6 . Budgets for the general , special revenue, and capital pro- $ jects funds are adopted on a basis consistent with generally i accepted accounting principles (GAAP) . D -- INVESTMENTS t Investments are stated at cost or amortized cost, which a i mates market. approxi- mates E -- TOTAL COLUMNS ON COMBINED STATEMENT } Total columns on the combined statements are captioned Memorandum t Only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present finan- cial Position, results of operations, or changes in financial a position in conformity with generally accepted accounting princi- ples. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the a this data. ggregation of Perry H. Carter, Certified Public Accountant -7- .., 1sg3iw9s1biYF.R'IL�o4:10i'ft'-',W'^y`r..vw.++wi.•4w.4Tot+:r." wti •+(. CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1985 NOTE 2 -- DUE FROM OTHER GOVERNMENTS Amounts due from other governments at June 30, 1985 consist of the following: Capital Special Projects General Revenue Fund Fund Fund Total Documentary transfer tax $ $ 6,155 $ $ 6,155 Fines and forfeitures 671 3 ,403 4,074 Trailer coach 1 ,326 1 ,326 Animal license 1 ,401 1 , 401 Motor vehicle in-lieu tax 38,238 38,238 Cigarette tax 7,084 7,084 Motor vehicle fees 201 201 Sales tax 264,000 264,000 Refund - Alameda County 83,840 83,840 Other 7,880 768 8,648 Revenue Sharing 54 ,627 54,627 $ 7 ,880 $ 458 ,311 $ 3 , 403 $ 469 ,594 NOTE 3 -- LONG-TERM DEBT The City had no long-term debt at June 30, 1985. NOTE 4 -- CHANGES IN GENERAL FIXED ASSETS A summary of changes in general fixed assets follows: Balance Balance July 1 , June 30, 1984 Additions Deletions 1985 Land $ $ $ $ Buildings Equipment 97,378 56,167 153,545 Construction-in- progress Improvements 1 ,092 1 ,092 $ 98. 470 $ 6 167 $ $ 154,637 Perry H. Carter, Certified Public Accountant S -8- ti CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1985 NOTE 5 -- OTHER REQUIRED INDIVIDUAL. FUND DISCLOSURES Generally accepted accounting principles require disclosure, as part of the Combined Statements, of certain information concern- ing individual funds including: Summary disclosures of debt service requirements to maturity for all types of outstanding debt. This requirement is met by Note 3. Summary disclosures of changes in general fixed assets by major asset class. This requirement is met by Note 4. Individual fund interfund receivable and payable balances. Interfund balances at June 30, 1985 consist of the following: Interfund Interfund Receivable Payable General Fund $ 282, 033 $ Capital Projects Fund 192,043 Traffic Safety Fund 19, 990 Special Assessments Fund 70, 000 $ 282 , 033 $ 282 .033 NOTE 6 -- MISCELLANEOUS REVENUES The schedule below sets out the detail of miscellaneous revenues for the year ended June 30, 1985 : General Fund Revenues Special Revenue Fund: $ 149, 099 f Park dedication fees Capital Projects Fund: 217, 391 Reimbursements 190,200 $ 556 .690 NOTE 7 -- RETIREMENT COMMITMENTS Substantially all of the City's employees are covered by the i Public Employee ' s Retirement System (PERS) . PERS is a defined benefit, contributory retirement plan administered by the State of California. Total pension expense and the amount funded for 1 the year ended June 30, 1985 was $41 ,168. A' Perry H. Carter, Certified Public Accountant ;. -9- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1985 NOTE 8 -- COMMITMENTS The City was not obligated under any long-term lease agreements for facilities or equipment at June 30, 1985. NOTE 9 -- LITIGATION The City was involved in several lawsuits at June 30, 1985. City Management estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial statements of the City. NOTE 10 -- CONTINGENT LIABILITIES The City participates in the General Revenue Sharing and other grant programs. These programs are subject to program compliance audits and/or financial audits by the grantor or their represen- tatives. Performance of such audits in the future may give rise to findings which will result in a liability on the part of the City. The City is of the opinion that any liability arising from a grantor' s audit will be immaterial. NOTE 11 -- PRIOR PERIOD ADJUSTMENT In fiscal year 1983/84 a receivable was recognized in the general fund in error. The following adjustment is to correct for that error: FUND BALANCE AT JUNE 30, 1984 AS PREVIOUSLY REPORTED $ 4,795,083 Correction of receivable ( 4, 075 ) FUND BALANCE AT JUNE 30, 1984 AS RESTATED $ 4 ,791 , 008 Perry H. Carter, Certified Public Accountant n -10- COMBINING AND INDIVIDUAL FUND STATEMENTS AND GENERAL FIXED ASSETS 3 1� r 1 1 i f 7 i :1 i :L CITY OF DUBLIN GENERAL FUND June 30, 1985 The purpose of the General Fund is to account for resources traditionally associated with City Government, which are not required to be accounted for in another fund. Revenues and expenditures of the Federal Revenue Sharing Program are accounted for in this fund. See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant R. CITY OF DUBLIN GENERAL FUND — BALANCE SHEET June 30, 1985 ASSETS Cash and investments $ 7,877,504 Receivables: Property taxes Accounts 8,894 Accrued interest 5 ,175 Due from other governments 1511 ,038 Due from other funds 458,311 Prepaid expenses 282,033 79 ,384 TOTAL ASSETS $ 8 ,914 ,339 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 283 ,914 Accrued wages 17, 147 f Deposits 279,517 Accrued vacation 16 ,039 596 ,617 FUND EQUITY Fund balance: Reserved for facility acquisition 400,000 Reserved for street improvement .4 "),sss�i: Reserved for authorized projects 8,317,722 TOTAL LIABILITIES AND FUND EQUITY $ 8L914 ,339 a i� J M �3 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant ' -12- • rr t..w "' `^. .ar,..t�...a:�S r � '� ` «,`ri.' ��:'+:.,a.t1.J.?w�S?� K.l.k,�.....C'14,�:.'�r,�er .;9'a�.'- :e ,r„ _ .;ua,�$ CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended June 30, 1985 REVENUE Taxes: Property tax $ 388,514 $ Sales and use tax 41010,866 Real property transfer tax 49,220 Cable TV franchise tax 25,450 Electric franchise tax 91 ,519 Gas franchise tax 32,959 Transient occupancy tax 140,290 4,738,818 Licenses and permits: Building permits 320,059 Encroachment fees 6,671 Animal permits 6,946 Other permits 306 333,982 Intergovernmental: Trailer coach in-lieu tax 3,865 Motor vehicle in-lieu tax 442,089 Cigarette tax 104,897 Off highway motor vehicle in-lieu tax 159 Homeowner' s property tax relief 17,102 Revenue sharing 217,769 785,881 Charges for services: Zoning fees 66,472 Plan checking fees 144,922 Special police fees 9,277 Park and recreation fees 34,878 Sales of maps and documents 4 ,668 260,217 Fines and forfeits 15 ,162 Use of money and property: Interest 832,960 Rents and concessions 76,691 909,651 Sale of property 124,884 Miscellaneous 24,215 TOTAL REVENUE $ 7,,192 ,810 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -13- CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended June 30, 1985 EXPENDITURES General government: Personal services $ 141 ,988 $ Services and supplies 219,017 Contract services 387 361 ,392 Public safety: Personal services 6,150 Services and supplies 8,624 Contract services 1 ,302,960 1 ,317,734 Highways and streets : Contract services _ 65 ,571 65,571 Community development: Personal services 153,814 Services and supplies 306,142 Contract services _ 142 ,611 602,567 Culture and leisure: Personal services 89,519 Services and supplies 58,656 Contract services _ 67 ,521 215,696 Capital outlay 30 ,308 TOTAL EXPENDITURES 2 ,593 ,268 EXCESS OF REVENUES OVER EXPENDITURES 4,599,542 OTHER FINANCING SOURCES (USES) Operating transfers in 26,978 Operating transfers out ( 110991806 ) ( 1 ,072,828 ) EXCESS OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) 3,526,714 FUND BALANCE, BEGINNING OF YEAR (NOTE 11 ) 4 ,791 ,008 FUND BALANCE, END OF YEAR $ 8.317 .722 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -14- 'i CITY OF DUBLIN SPECIAL REVENUE FUNDS June 30, 1985 Traffic Safety Fund - Resources of this fund are required to be used exclusively for official traffic control devices, maintenance thereof, equipment and supplies for traffic law en- forcement and maintenance, improvement, or construction of public streets, bridges and culverts within the City. State Gasoline Tax Fund - Resources of this fund are required to be used primarily for the research, planning, construction, im- provement, maintenance and operation of public streets and high- ways, and for certain other transportation related activities. County Gasoline Tax Fund - Resources of this fund are required to be used primarily for the research, planning, construction, im- provement, maintenance and operation of public streets and high- ways, and for certain other transportation related activities. Federal Aid Urban Fund - Resources of this fund are required to be used for improvements or restoration of roads, streets, fringe parking, and public transportation facilities within the boundaries of the local agency. Transportation Fund - Resources of this fund are required to be used for providing paratransit services to Dublin residents. CDBG Fund - Community development block grants .are accounted for in this fund. The resources of this fund are required to be used to meet program objectives which includes rehabilitation of existing housing, construction of public improvements, and the development of new affordable housing. Park Dedication Fund - Resources of this fund are required by State law to be used for the purpose of developing new or re- habilitating existing park or recreational facilities to serve the subdivision for which in-lieu fees were received. See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -15- CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1985 Traffic Safety State Office of Transportation Fund Gasoline Tax Traffic Safety Fund ASSETS Cash and investments $ 15,752 $ 233,445 $ $ 6,669 Due from other governments 3,403 Due from other funds TOTAL ASSETS $ 19.155 $ 233,495 $ 6,669 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 12,442 $ 12,343 $ $ 6,669 Due to other funds 19,990 32,432 12,343 6,669 FUND EQUITY Fund balance (13,277) Reserved for street improvements 221 ,102 TOTAL LIABILITIES AND FUND EQUITY $ 19.155 $ 233,495 $ $ 6,669 See accompanying notes to financial statements, , Perry H. Carter, Certified Public Accountant -15- CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1985 Federal Aid Park Dedication Urban Highway Fund CDBG Fund Fund Total ASSETS Cash and investments $ $ $ 777,488 Due from other governments $ 1 ,033,354 30,000 Due from other funds 33,403 TOTAL ASSETS $ — $ 30.000 $ 77 48 $ 1 ,066.757 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ $ $ $ 31 ,454 Due to other funds 19,990 FUND EQUITY 51 ,444 Fund balance Reserved for street improvements 30,000 777,488 794,211 221 ,102 TOTAL LIABILITIES AND FUND EQUITY $ $ 30,000 $ 777,488 $ 1 .066.757 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -17- i. 4."A. . CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Traffic Safety State Office of Transportation Fund Gasoline Tax Traffic Safety Fund REVENUES Intergovernmental- Traffic study grant FAU grant $ $ $ 7,237 $ Gasoline tax 260,451 TDA Act funds CDBG Grant funds 8,892 Fines and forfeits Vehicle code fines 53,139 Use of money and property Interest 20,407 , All other Park dedication fees s ( 53,139 280,858 7,237 8,892 ) EXPENDITURES Public safety Service and supplies 20,799 € Contract services 46,190 9,672 € Highways and streets Contract services 252,739 Capital outlay 29,534 Health and welfare Contract services 8,892 66,989 291 ,945 8,892 REVENUES IN EXCESS OF (LESS THAN) EXPENDITURES (13,850) ( 11 ,087) 7,237 OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out ( 1 ,500) (7,237) REVENUES IN EXCESS OF (LESS THAN) EXPENDITURES i. AND OTHER FINANCING USES (13,850) ( 12,587) FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 573 233,689 T; FUND BALANCES, END OF YEAR $(1 3 X77) $ 221,1 02 $ h See accompanying notes to financial Statements. Perry H. Carter, Certified Public Accountant _18_ CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Federal Aid Park Dedication Urban Highway Fund CDBG Fund REVENUES Fund Total Intergovernmental Traffic study grant FAU grant $ $ $ Gasoline tax 320,202 $ 7,237 TDA Act funds 320,202 CDBG Grant funds 260,451 Fines and forfeits 74,267 8,892 Vehicle code fines 74,267 Use of money and property Interest 53,139 All other Park dedication fees 64,930 85,337 217,391 _217,391 , 202 320, 74,267 282321 EXPENDITURES 1,026,916 Public safety Service and supplies Contract services Highways and streets 20,799 Contract services 55,862 Capital outlay Health and welfare 252,739 Contract services 29,534 8,892 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES _ 367,826 OTHER FINANCING SOURCES (USES) 320,202 79 267 282,321 ' 659,090 Operating transfers in Operating transfers out ( REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (320,202) (49,267) 596) (_ 373,752) AND OTHER FINANCING USES FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 30,000 281 ,775 285,338 FUND BALANCES, END OF YEAR 495,713 _729,975 $ =._s= $ ;L0,900 $ 777,488 --- $ 1015.313 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant 'k -19- CITY OF DUBLIN CAPITAL PROJECTS FUNDS June 30, 1985 Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities or projects. �s See accompanying notes to financial statements. r{ Perry H. Carter, Certified Public Accountant -20- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1985 Traffic San Ramon Road Study AVB/ Improvements Dougherty Road City Base Phase I Improvements Map General Plan Dougherty Road ASSETS $ 5,258 $ Cash and investments k Due from other funds Due from other governments $ }' TOTAL ASSETS $ 5.258 $ - LIABILITIES AND FUND BALANCES LIABILITIES $ 420 $ Accounts payable Deposits Due to other funds TOTAL LIABILITIES 420 FUNDS BALANCES 4,838 Reserved for authorized projects $ $ $ TOTAL LIABILITIES AND FUND BALANCES $ 5.258 T i '1 f Continued See accompanying notes to financial statements. ' Perry H. Carter, Certified Public Accountant _11 _ CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1985 Dougherty/ FAU Dublin Road Street Name Traffic Signal Rehabilitation Intersection Approach Traffic Signal AVB/San Ramon Major Arterials Modifications Signs Amador Plaza Road ASSETS Cash and investments $ 47,583 $ 22,391 $ 4,785 $ $ 70,883 Due from other funds 7,880 Due from other governments TOTAL ASSETS $ _55,==46-1 $ 22.391 $ 4,785 $ $ Z�883 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 47,584 $ $ $ $ Deposits Due to other funds 139,429 TOTAL LIABILITIES 187,013 FUNDS BALANCES Reserved for authorized projects (131 ,550) 22,391 4,785 70,883 TOTAL LIABILITIES AND FUND BALANCES $ 64U- $ X91 $ 4785 $ $ 70883 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -22- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1985 Street Improvements Traffic Signal Amador Valley Sewage Facility Median Landscape Stagecoach Boulevard Expansion Bus Shelters ASSETS Cash and investments $ $ 75,746 $ 11 ,764 $ $ 27,088 Due from other funds Due from other governments TOTAL ASSETS $ $ _ZS 746 $ 11 ,764 $ $ 27,088 } LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ 13,982 $ 6,380 $ $ Deposits Due to other funds TOTAL LIABILITIES 13,982 6,380 FUNDS BALANCES Reserved for authorized projects _ 61 ,764 5,384 27,088 TOTAL LIABILITIES AND FUND BALANCES $ _ $ 5 ,746 $ 11 X769 $ $ 27,088 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -23- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1985 City Civic Entrance Street Tree Center Defective Village Signs Program Facility Sidewalk Repair Parkway Wall ASSETS Cash and investments $ 111 $ 31 ,868 $ $ 5,559 $ 2,920 Due from other funds Due from other governments TOTAL ASSETS $ 111 $ 31 ,868 $ $ 5.559 $ 2,920 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 220 $ 269 $ $ 232 $ 80 Deposits Due to other funds TOTAL LIABILITIES 220 269 232 80 FUNDS BALANCES Reserved for authorized projects (109) 31 ,599 5,327 2,840 TOTAL LIABILITIES AND FUND BALANCES $ 111 $ 1-1- a $ $ 5,559 $ 2,920 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant _?4_ CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1985 Village Parkway Word Downtown Landscape Annual Street Processing OTS Traffic Improvement Sidewalk Overlay Program Equipment Study Project Study ASSETS Cash and investments $ 15,783 $ $ $ 11 ,925 $ Due from other funds Due from other governments TOTAL ASSETS $ 15,783 $ $ $ 11 .925 $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 25,258 $ $ $ 828 $ Deposits " Due to other funds 22,614 TOTAL LIABILITIES 25,258 23,442 FUNDS BALANCES Reserved for authorized projects ( 9,475) (11 ,517) TOTAL LIABILITIES AND FUND BALANCES $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1985 Downtown Dublin Boulevard Street Lighting Kolb Park San Ramon San Ramon Undergrounding Additions Improvements Road Phase II Road Phase III ASSETS . Cash and investments 42,797 19,160 15,895 Due from other funds Due from other governments TOTAL ASSETS $ $ 42.797 $ $ 19,160 $ 15.895 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ 10,301 $ $ 4,462 $ 9,502 Deposits Due to other funds TOTAL LIABILITIES 10,301 4,462 9,502 FUNDS BALANCES Reserved for authorized projects 32,496 14,698 6,393 TOTAL LIABILITIES AND FUND BALANCES $ =y $ 42f797 $ $ 19.160 $ 15-A25 Continued See accompanying notes to financial statements. Perry ll. Carter, Certified Public Accountant CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1985 Traffic Signal Traffic Signal Alcosta/San Ramon Traffic Signal Dublin/ Traffic Signal Traffic Signal Boulevard Dublin/Sierra Dublin Court Dublin/Clark Interconnect ASSETS Cash and investments $ 38,496 $ 7,291 $ 99,509 $ 59,432 $ Due from other funds Due from other governments TOTAL ASSETS $ 38,A $ 7-1191 $ 99.509 $ $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 1 ,553 $ 2,300 $ 43,722 $ 23,370 $ Deposits Due to other funds TOTAL LIABILITIES 1 ,553 2,300 43,722 23,370 FUNDS BALANCES Reserved for authorized projects 36,943 4,991 55,787 36,062 TOTAL LIABILITIES AND FUND BALANCES $ i&1A91 $ 7291 $ 99,509 $ x,_932 $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant _27_ CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1985 Median Break Median Landscape Silvergate/ Village Parkway/ Median Landscape Handicapped Banner Pole Silvertree AVB to Kimball Major Arterials Curb-Ramps Foundations ASSETS Cash and investments $ 1 ,187 $ 4,868 $ 260,571 $ 11 ,085 $ Due from other funds Due from other governments TOTAL ASSETS $ X87 $ 9,868 $ 260,571 $ 11 ,085 $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ 5,722 $ 90,350 $ 9,476 $ Deposits 30,000 Due to other funds TOTAL LIABILITIES 5,722 90,350 39,476 FUNDS BALANCES 391 ) Reserved for authorized projects 1 ,187 ( 854) 170,221 (28, TOTAL LIABILITIES AND FUND BALANCES $ 1187 $ 4868 $ 260,57.1_ $ 11 ,085 $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1985 Fire Services DSRSD Services Study Study Total ASSETS Cash and investments $ 17,207 $ 12,000 $ 923,162 Due from other funds 7,880 Due from other governments TOTAL ASSETS $ 17.207 $ 12.000 $ 931 ,092 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 8,046 $ $ 304,057 Deposits Due to other funds 192,043 TOTAL LIABILITIES 8,046 496,100 FUNDS BALANCES Reserved for authorized projects 9,161 12,000 434,942 TOTAL LIABILITIES AND FUND BALANCES $ 17.207 $ 12000 $ 931 ,092 Concluded I See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -29- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Traffic Study San Ramon Road City Base AVB/Dougherty Improvements Dougherty Road Map General Plan Road Phase I Improvements REVENUES Other revenue (reimbursement) $ $ $ $ $ TOTAL REVENUE EXPENDITURES General government: Contractual services 10,162 6,705 2,048 Capital projects: Construction in progress Equipment 65,483 TOTAL EXPENDITURES 10,162 6,705 2,048 65,483 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (10,162) (6,705) (2,048) (65,483) OTHER FINANCING SOURCES (USES) Operating transfers in 15,000 6,705 Operating transfers (out) 44,267(2,026) (69,039) (13,468) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES 4,838 (4,074) (69,039) (34,684) FUND BALANCES, BEGINNING OF YEAR 4,079 69,039 34,689 !_ FUND BALANCES, END OF YEAR $ _4,838 $ _ $ $ $ Continued i See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant i i -30-- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Dougherty/ FAU Dublin Road Street Name Traffic Signal Rehabilitation Intersection Approach Traffic Signal AVB/San Ramon Major Arterials Modifications Signs Amador Plaza Amador Valley REVENUES Other revenue (reimbursement) $ 7,880 $ $ $ 7,760 $ TOTAL REVENUE 7,880 7,760 EXPENDITURES General government: Contractual services Capital projects: Construction in progress 495,246 3,854 90� Equipment TOTAL EXPENDITURES 495,246 3,854 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (487,366) 3,854) 90) 7,760 OTHER FINANCING SOURCES (USES) Operating transfers in 324,698 Operating transfers (out) (10,838) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES (162,668) 3,854) 90) 3,078) FUND BALANCES, BEGINNING OF YEAR 31 ,118 26,245 4,875 3,078 70,883 FUND BALANCES, END OF YEAR $(131 .550) $ �2 391_ 4 785 $ $ 10,_883 'Continued See accompanying notes to financial statements. Perry If. Carter, Certified Public Accountant CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Street Improvements Median Traffic Signal Amador Valley Sewage Facility d Landscape Stagecoach Boulevard Expansion Bus Shelters REVENUES Other revenue (reimbursement) $ $ 100,000 $ $ $ TOTAL REVENUE 100,000 EXPENDITURES General government: Contractual services Capital projects: Construction in progress 38,648 6,700 Equipment TOTAL EXPENDITURES 38,648 6,700 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 61 ,352 ( 6,700) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers (out) (99,83_1 ) ( 5,000) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES (99,831 ) 56,352 ( 6,700) FUND BALANCES, BEGINNING -OF YEAR 99,831 5,412 12,084 27,088 FUND BALANCES, END OF YEAR $ $ =61 764 $ 5,389 $ $ 27,088 �P�L Continued y See accompanying notes to financial statements. Perry 11. Carter, Certified Public Accountant CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 City Civic Entrance Street Tree Center Defective Village Signs Program Facility Sidewalk Repair Parkway Wall REVENUES Other revenue (reimbursement) $ $ $ $ $ TOTAL REVENUE EXPENDITURES General government: Contractual services Capital projects: Construction in progress 1 ,109 2,401 5,200 39,016 257,129 Equipment TOTAL EXPENDITURES 1 ,109 2,401 5,200 39,016 257,129 . REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (1 ,109) ( 2,401 ) (5,200) (39,016) (257,129) OTHER FINANCING SOURCES Operating transfers in 1 ,000 34,000 , 5,200 42,500 74,138 Operating transfers (out) REVENUES AND OTHER FINANCING SOURCES IN xt, EXCESS OF (LESS) THAN EXPENDITURES ( 109) 31 ,599 3,484 (182,991 ) t' FUND BALANCES, BEGINNING OF YEAR 1 ,843 185,831 FUND BALANCES, END OF YEAR $(__109) $ 'F Continued See accompanying notes to financial statements. i Perry H. Carter, Certified Public Accountant _33_ CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Village Parkway Word Downtown Landscape Annual Street Processing OTS Traffic Improvement Sidewalk Overlay Program Equipment Study Project Study REVENUES Other revenue (reimbursement) $ $ $ $ $ TOTAL REVENUE EXPENDITURES General government: Contractual services 18,754 Capital projects: Construction in progress 145,106 119,131 Equipment 17,953 TOTAL EXPENDITURES 145,106 119,131 17,953 18,754 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (145,106) (119,131 ) (17,953) (18,754) OTHER FINANCING SOURCES (USES) Operating transfers in 29,500 119,131 17,953 7,237 Operating transfers (out) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES (115,606) (11 ,517) FUND BALANCES, BEGINNING OF YEAR 106,131 FUND BALANCES, END OF YEAR $(_9,_4752 $ $ $(11 ,x) $ . Continued See accompanying notes to financial statements. ' Perry H. Carter, Certified Public Accountant -34- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Downtown Dublin Boulevard Street Lighting Kolb Park San Ramon San Ramon Undergrounding Additions Improvements Road Phase II Road Phase III REVENUES $ 2,980 $ $ 46,580 $ Other revenue (reimbursement) $ — TOTAL REVENUE 2,980 46,580 EXPENDITURES General government: Contractual services Capital projects: 70,984 546 100,921 33,607 Construction in progress Equipment — TOTAL EXPENDITURES 70,484 546 100,921 33,607 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (67,504) (546) ( 54,341 ) (33,607) OTHER FINANCING SOURCES (USES) 100,000 546 69,039 40,000 Operating transfers in Operating transfers (out) — REVENUES AND OTHER FINANCING SOURCES IN 14,698 6,393 EXCESS OF (LESS) THAN EXPENDITURES 32,496 FUND BALANCES, BEGINNING OF YEAR FUND BALANCES, END OF YEAR $ � $ 32996 $ a $ 14,698 $ 6,393 Continued See accompanying notes to financial statements. Perry H, Carter, Certified Public Accountant �c CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Traffic Signal Alcosta/ Traffic Signal San Ramon Traffic Signal Dublin/ Traffic Signal Traffic Signal Boulevard Dublin/Sierra Dublin Court Dublin/Clark Interconnect REVENUES $ $ $ Other revenue (reimbursement) $ 25,000 $ TOTAL REVENUE 25,000 EXPENDITURES General government: Contractual services Capital projects: 3,057 10,009 105,213 95,938 Construction in progress Equipment TOTAL EXPENDITURES 3,057 10,009 105,213 95,938 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 21 ,943 (10,009) (105,213) (95,938) OTHER FINANCING SOURCES (USES) 15,000 15,000 173,500 144,000 Operating transfers in 12,500 12,000 Operating transfers (out) REVENUES AND OTHER FINANCING SOURCES IN 787 36,062 EXCESS OF (LESS) THAN EXPENDITURES 36,943 4,991 55, FUND BALANCES, BEGINNING OF YEAR FUND BALANCES, END OF YEAR $ 36,943 $ A.=M $ 55,78 $ Continued See accompanying notes to financial statements. ' Perry H. Carter, Certified Public Accountant CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Median Break Median Landscape Silvergate/ Village Parkway/ Median Landscape Handicapped Banner Pole Silvertree AVB to Kimball Major Arterials Curb-Ramps Foundations 3 I i REVENUES $ Other revenue (reimbursement) $ $ $ $ TOTAL REVENUE EXPENDITURES General government: Contractual services Capital projects: Construction in progress 18,188 29,867 133,627 31 ,669 2,854 Equipment TOTAL EXPENDITURES 18,188 29,867 133,669 31 ,669 2,854 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (18,188) (29,867) (133,627) (31 ,669) (2,854) OTHER FINANCING SOURCES (USES) 19,375 29,013 303,848 3,278 3,500 Operating transfers in 646 Operating transfers (out) REVENUES AND OTHER FINANCING SOURCES IN EXCESS (LESS) THAN OF EXPENDITURES 1 ,187 ( 854) 170,221 (28,391 ) FUND BALANCES, BEGINNING OF YEAR FUND BALANCES, END OF YEAR $ _�_�l 8� $( =-a-859) $ S 1 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Fire Services DSRSD Services Study Study Total REVENUES Other revenue (reimbursement) $ $ $ 190,200 TOTAL REVENUE 190,200 EXPENDITURES General government: Contractual services 13,339 51 ,008 Capital projects: Construction in progress 1 ,815,093 Equipment 17,953 } TOTAL EXPENDITURES 13,339 1 ,884,054 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (13,339) (1 ,693,854) OTHER FINANCING SOURCES (USES) 4 Operating transfers in 22,500 12,000 1 ,671 ,928 Operating transfers (out) 225,348 REVENUES AND OTHER FINANCING SOURCES IN EXCESS (LESS) THAN OF EXPENDITURES 9,161 12,000 ( 247,274) ?' FUND BALANCES, BEGINNING OF YEAR 682,216 FUND BALANCES, END OF YEAR $ _9�1�1 $ $ ___434,942 is F' �5 f: Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant i- -38- r CITY OF DUBLIN SPECIAL ASSESSMENT FUNDS June 30, 1985 Special assessment funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. , r _2f Perry H. Carter, Certified Public Accountant -39- CITY OF DUBLIN , SPECIAL ASSESSMENT FUNDS COMBINING BALANCE SHEET Year Ended June 30, 1985 Street Lighting Landscape Assessment Amador Valley Assessment District Assessment District Boulevard Extension 83-1 83-2 Assessment District Total ASSETS Cash and investments $ 59,479 $ 27,559 $ 48,429 $ 135,467 Accounts receivable 51 51 TOTAL ASSETS $ 59530 $ 27,559 $ 48.429 $ 135_.518 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 9,380 $ 1 ,396 Deposits $ 12,420 $ 23,196 Due to other funds 36,250 36,250 35,000 35,000 70,000 44,380 1 ,396 83,670 129,446 FUND EQUITY Fund balance 15,150 26,163 (35,241 ) 6,072 TOTAL LIABILITIES AND FUND EQUITY $ 59,530 $ 27.559 $ 48.429 $ ` i r. M mod' t , .S" accmpanying notes to financial statements. . .Parry 8. Carter, Certified Public Accountant -40- CITY OF DUBLIN SPECIAL ASSESSMENT FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES Year Ended June 30, 1985 Street Lighting Landscape Assessment Assessment District Assessment District Boulevard dExtension Assessment District REVENUES 83-1 83-2 A Total Special assessment Use of money and property $ 111 ,900 $ 25,245 $ Interest $ 137,145 3,710 1 ,855 3,710 9,275 _115,610 27,100, EXPENDITURES 3.710 146;420 Public safety Service and supplies Highways and streets 100,460 Contract services 100,460 Capital outlay 937 937 38,951 38,951 REVENUES IN EXCESS OF 100,460 937 ?' 38,951 140,348 k: (LESS THAN) EXPENDITURES 15,150 26,163 (35,241 ) 6 072 ?UND BALANCES, BEGINNING OF YEAR , FUND BALANCES, END OF YEAR $ _ 15.150 $ 26.163 $( 24 ) $ 0 2 3, Yn' wt �e accompanying notes to financial statements. 'rry H. Carter, Certified Public Accountant k -41- CITY OF DUBLIN GENERAL FIXED ASSETS June 30, 1985 The purpose of the General Fixed Assets group of accounts is to account for fixed assets not used in proprietary fund operations or accounted for in Trust Funds. See accompanying notes to financial statements. µ Perry H. Carter, Certified Public Accountant -42- CITY OF DUBLIN SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES June 30, 1985 GENERAL FIXED ASSETS Equipment Improvements $ 153,545 1 ,092 $ 154 ,637 INVESTMENT IN GENERAL FIXED ASSETS General fund purchases Gifts $ 154, 437 200 $ 154 . 637 j r„ See accompanying notes to financial statements. ,{ Perry H. Carter, Certified Public Accountant -43- CITY OF DUBLIN MANAGEMENT LETTER JUNE 30 , 1985 PERRY H. CAR'T'ER, C.P.A. CERTIFIED PUBLIC ACCOUN'T'ANT 2.1326 MISSION BOULEVARD SUITE 4 HAYWARD,CALIFORNIA 94541 (415) 537-1835 November 18, 1985 Honorable Mayor, Members of the City Council, and City Manager City of Dublin, California I have examined the financial statements of the City of Dublin for the year ended June 30, 1985 and have issued my report thereon dated November 8, 1985. As part of my examination, I made a study and evaluation of the City's system of internal accounting control to the extent I considered necessary to evaluate the system as required by gener- ally accepted auditing standards. Under these standards, the purposes of such an evaluation are to establish a basis for reliance on the system of internal accounting control in deter- mining the nature, timing, and extent of other auditing proce- dures that are necessary for expressing an opinion on the finan- cial statements and to assist the auditor in planning and per- forming his examination of the financial statements. The objective of internal accounting control is to provide reasonable, but not absolute, assurance as to the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial state- ments and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a system of internal accounting control should not exceed the benefits de- rived and also recognizes that the evaluation of these factors necessarily requires estimates and judgments by management. There are inherent limitations that should be recognized in considering the potential effectiveness of any system of internal accounting control. In the performance of most control proce- dures, errors can result from misunderstanding of instructions, mistakes of judgment, carelessness, or other personal factors. Control procedures whose effectiveness depend upon segregation of duties can be circumvented by collusion. Similarly, control procedures can be circumvented intentionally by management either with respect to the execution and recording of transactions or with respect to the judgments required in the preparation of financial statements. City of Dublin Perry H. Carter Page 2 November 18, 1985 Further, projection of any evaluation of internal accounting control to future periods is subject to the risk that the pro- cedures may become inadequate because of changes in conditions and that the degree of compliance with the procedures may deteriorate. My examination of the financial statements was made in accordance with generally accepted auditing standards, including the study and evaluation of the system of internal accounting control for the year ended June 30, 1985. The examination, which was made for the purposes set forth above, would not necessarily disclose all . weaknesses in the system because it was based on selective .tests of accounting records and related data. However, such evaluation disclosed the following conditions that I believe to be weaknesses, excluding those which were corrected before they came to my attention. In addition, I have included my recommenda- tions for improving the accounting system. These conditions were considered in determining the nature, timing, and extent of audit tests to be applied in my examination of the financial statements, and this report of such conditions does not modify my report dated November 8, 1985, on such finan- cial statements. My recommendations with respect to the City' s system of internal control is discussed below, and includes the status of the prior year's recommendations, along with the current year' s recommenda- tions. CURRENT YEAR RECOMMENDATIONS 1 -- ADDITIONAL STAFF FOR FINANCE As the volume of City business increases the finance function is directly impacted in terms of the number and complexity of trans- actions to be processed. This situation requires that available staff perform all finance functions, from clerical to review and analysis. At some point this results in an inefficient use of staff. I recommend that the City review the present staffing of the Finance function with the idea in mind of adding an account clerk position, either full or part time. Such a position would aid in maintaining segregation of accounting duties and provide for efficient use of staff. The City is currently in the process of recruiting a Finance Technician. This position, when filled, will provide substantial support to the finance function. City of Dublin Perry H. Carter Page 3 November 18, 1985 2 -- COMPUTER STUDY The City currently uses a one-write, manually-posted general ledger system. I believe that if the City activity continues to grow, this system will become increasingly cumbersome to main- tain. I recommend that the City prepare a study to determine if the City's financial operations should be computerized, and if so, to what extent. This recommendation is now being considered by the City's financial consultant,, who is currently reviewing available accounting software and computer equipment. 3 -- CASH RECEIPTS SYSTEM In 1984/85 the City implemented the prior year recommendation to use prenumbered cash receipts for other than "main office" re- ceipts. The next step is for the City to audit or account for the receipts during the year on a regular basis. I recommend that such a procedure be established during 1985/86. 4 -- APPROVAL OF ADJUSTING JOURNAL ENTRIES Adjusting journal entries constitute an important part of the City' s accounting system. Because journal entries constitute "access" to the financial records all entries must be properly prepared and authorized. Currently both preparation and review functions are performed by the City Manager, Assistant to the City Manager and the City' s financial consultant. The City Manager recognizes the importance of the control func- tion and has used the City' s financial consultant in this capacity. I believe that this is a workable solution given the current staffing of the City. However, the duties and responsi- bilities of the Financial Consultant should be formalized in writing. 5 -- INVESTMENT CONTROL The City has numerous certificates of deposits at several insti- tutions for reasons of insurance and interest rates. Currently, the investments are inventoried on a monthly basis and a report is prepared. , However, no formalized system of tracking certifi- cate of deposit maturities, rollovers, and interest income by certificate of deposit is used. I recommend that a procedure for tracking such information be developed. City of Dublin Perry H. Carter Page 4 November 18, 1985 6 -- RECORD SAFEKEEPING The City currently has a two-drawer fire-resistant file cabinet used to store certificates of deposit, the general ledger and other important documents. As City activity increases this one cabinet will not be adequate for such storage. I recommend that the City acquire at least one four-drawer fire-resistant safe in 1985/86. PRIOR YEAR RECOMMENDATIONS The following is a summary of the status of the prior year' s recommendations: 1 . Staffing recommendation - Repeated as current year recommen- dation. 2. Computer study - Repeated as current year recommendation. 3. Cash receipts - Implemented. 4. Cash disbursements - Implemented. I wish to thank the City Manager and his staff for their coopera- tion during the course of the audit. Should you wish to discuss any of the comments I have made, I will be happy to meet with you at your convenience. Sincerely, PERRY H. 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