2008 audit report

Informations

• Publié par: Octey
• Nombre de lectures: 15
• Langue: English

Extrait

City of Garibaldi
Audit Report
June 30, 2008City of Garibaldi
June 30, 2008
Organization
Term ExpiresCity Council Members
Suzanne McCarthy — Mayor P.O. Box 562 12/31/08
Garibaldi, Oregon 97118
Terry Kandle — Council President P.O. Box 451 12/31/08
Garibaldi Oregon 97118
Marvin Evans — Council Vice President P.O. Box 735 12/31/08
Garibaldi, Oregon 97118
Roberta Bettis P.O. Box 113 12/31/10
Jerry Bartolomucci P.O. Box 614 12/31/10
Garibaldi, Oregon 97118
Appointed Officials
Kevin Greenwood — City Administrator City Hall
and City Recorder Garibaldi, Oregon 97118
Joan S. Kelsey — City Attorney P.O. Box 520
Tillamook, Oregon 97141
-1-City of Garibaldi
June 30, 2008
Table of Contents
Page
INTRODUCTORY SECTION
Organization 1
Table of contents 2
FINANCIAL SECTION
Independent auditors’ report 4
Management’s discussion and analysis 6
Financial statements
Modified cash basis statement of net assets 18
Modified cash basis statement of activities 19
Modified cash basis balance sheet — governmental funds 20ent of receipts, expenditures and changes in fund balance
— governmental funds 21
Modified cash basis statement of net assets — enterprise funds 22ent of activities — enterprise funds 23
Statement of cash flows — enterprise funds 24
Statement of assets and liabilities — fiduciary funds 25
Statement of cash transactions — fiduciary funds 26
Notes to financial statements 27
Required Supplemental Information
Schedules of budget and actual cash transactions
• General Fund 41
• Street Fund 43
• Transient Room Tax Fund 44
Notes to budgetary comparison schedules 47
OTHER SUPPLEMENTAL INFORMATION
Modified cash basis combining balance sheet — nonmajor governmental funds 48bining statement of receipts, expenditures and changes in fund
balance — nonmajor governmental funds 49
Schedules of budget and actual cash transactions — nonmajor governmental funds
• Housing Rehabilitation Revolving Loan Fund 50
• Payroll Liabilities Fund 51
-2-City of Garibaldi
June 30, 2008
Table of Contents
Page
Schedules of budget and actual cash transactions — major governmental funds other than
the general fund and special revenue funds
• Public Safety Equipment Reserve Fund 52
• Public Works Equipm 53ajor enterprise funds
• Water Operating Fund 54
• Systems Development Fund 55
• Wastewater Operating Fund 56
• Wastewater Debt Service Fund 58
Modified cash basis comparative statement of net assets — Wastewater Operating Fund 59pent of activities — enterprise funds 60
Summary schedule of transactions — all funds 61
Schedule of property tax transactions 62
Schedule of long-term debt transactions — Wastewater Activity 63
Schedule of future requirements for retirement of long-term debt — General Obligation
Sewer Bond No. 1 64e debt — Revenue Installment 65ents for retirement of long-term debt — Oregon Department
of Environmental Quality State Revolving Fund 67
Schedule of future requireme debt — Oregon Economic
and Community Development Department Water/Wastewater Financing Program 68
REQUIRED REPORTS AND DISCLOSURES
Report on internal control over financial reporting and on compliance and other matters
based on an audit of financial statements performed in accordance with Government
Auditing Standards 69
Required disclosures and independent auditors’ comments 71
-3-FINANCIAL SECTIONManagement’s Discussion and Analysis

The City of Garibaldi’s Management’s Discussion and Analysis is a narrative overview of the
City’s financial activities for the year ended June 30, 2008. The information presented here
should be read in conjunction with the financial statements and notes to the financial statements
that follow.

Financial Highlights

The City’s government-wide total assets exceeded liabilities at June 30, 2008 by $6,424,749 (net
assets). Of that amount, $1,178,053 is in unrestricted net assets and available to meet the City’s
ongoing financial commitments to its citizens and creditors; $600,649 was legally restricted for
particular purposes; and $4,646,047 was the City’s investment in capital assets, net of related
debt.

During the year, the City’s cash receipts from taxes and other governmental receipts used to
finance governmental programs were greater than expenses by $148,908.

The City’s cash receipts from user fees and other sources used to finance the City’s business-
type activity (water and wastewater services) were less than expenses by $96,112.

Overview of the Financial Statements

This annual report consists of four components: 1) management’s discussion and analysis (this
section), 2) government-wide and fund financial statements, 3) required supplementary
information, and 4) other supplementary information. The City prepares its financial statements
using the modified cash basis of accounting. As such, receipts are recognized when cash is
received and expenditures or expenses are recorded when cash is paid.

Government-wide Financial Statements

Government-wide financial statements provide readers with a broad overview of the City’s
finances in a manner similar to a private-sector business, distinguishing functions of the City that
are principally supported by taxes and intergovernmental receipts (referred to as “governmental
activities”) from functions that are intended to recover all or a significant portion of their costs
through user fees and charges (referred to as “business-type activities”). The governmental
activities of the City of Garibaldi include a broad range of local government services provided to
the public, such as police and fire protection, road and street construction and maintenance,
community planning and development, and other community services. In addition, other general
government services are provided, such as the issuance of permits and licenses. The business-
type activities of the City are the water and wastewater utility services.

The statement of net assets presents information on all of the City’s assets and liabilities, with
the difference between the two reported as net assets. This statement serves a purpose similar to
that of the balance sheet of a private-sector business. Over time, increases or decreases in net
assets may serve as one indicator of whether the financial position of the City is improving or
deteriorating. Other indicators include the condition of the City’s infrastructure system (roads,
streets, storm water drainage, etc.) and general economic conditions within the City.
- 6 -The statement of activities presents information showing how the government’s net assets
changed during the fiscal year. All changes in net assets are reported using the modified cash
basis of accounting.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like most other state and local
governments, uses fund accounting for measuring compliance with legal or other requirements.
All of the funds fall into two categories: governmental funds and proprietary funds.
Governmental funds account for most, if not all, of a government’s tax-supported activities.
Proprietary funds account for a government’s business-type activities, where all or most of the
costs of activities are supported by fees and charges that are paid directly by those who benefit
from the activities.

Governmental Funds

The Balance Sheet — Governmental Funds and the Statement of Receipts, Expenditures,
and Changes in Fund Balances — Governmental Funds present separate columns of financial
data for the General, Street, Transient Room Tax, Public Safety Equipment Reserve and the
Public Works Equipment Reserve Funds. These are considered major funds. Data from the
remaining governmental funds (nonmajor funds) are combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in
the form of combining statements and other schedules elsewhere in this report.

Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the ent-wide financial statements, governmental fund financial statements focus on the
near-term inflows and outflows of cash, as well as cash available at the end of the fiscal year.
Such information is useful in evaluating a government’s near-term financing requirements. Both
the governmental fund balance sheet and the governmental fund statement of receipts,
expenditures, and changes in fund balances provide a reconciliation to the governmental
activities column in the government-wide financial statements in order to facilitate comparison.

Proprietary Funds

Services for which the City charges customers a user fee are generally reported in proprietary
funds. Proprietary funds, like the government-wide financial statements, provide both long and
short-term financial information.

The City’s enterprise funds, which are the type of proprietary funds used by the City, provide
separate information for the water and wastewater service ac