63007 Foresthill PUD Audit Report pdf format

Florence Finch Kelly

Description

FORESTHILL PUBLIC UTILITY DISTRICT _________________________ FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT for the year ended June 30, 2007 ROBERT W. JOHNSON Certifed Public Acounta TABLE OF CONTENTS Pages Independent Auditor's Report 1-2 Management’s Discussion and Analysis 3-4 Financial Statements: Combined Balance Sheet 5 Statement of Revenues, Expenses and Changes in Net Assets 6-7 Statement of Cash Flows 8-9 Notes to Financial Statements 10-22 Supplemental Information: 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 24-25 Principal Officials 26 Statement of Revenues, Expenses and Changes in Net Assets – Budget and Actual 27 Operating Expenses 28-29 ROBERT W. JOHNSON An Accountancy Corporation Certified Public Accountant 6234 BIRDCAGE STREET • CITRUS HEIGHTS, CA 95610-5949 • [phone] INDEPENDENT AUDITOR’S REPORT To the Board of Directors Foresthill Public Utility District Foresthill, California We have audited the accompanying financial statements of Foresthill Public Utility District (the “District”) as of and for the year ended June 30, 2007, as listed in the table of contents. These financial statements are ...

Informations

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

Extrait

                                                                       

   

 

FORESTHILL PUBLIC UTILITY DISTRICT     _________________________ FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT for the year ended June 30, 2007

   

 

   

 

   

 

   

 

   

 

   

 

ROBERT W. JOHNSON Certified Public Accountant    

  

                                               

 

       

  TABLE OF CONTENTS

  Independent Auditor's Report Management’s Discussion and Analysis   Financial Statements: Combined Balance Sheet Statement of Revenues, Expenses  and Changes in Net Assets Statement of Cash Flows Notes to Financial Statements Supplemental Information: Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance withGovernment Auditing Standards     Principal Officials Statement of Revenues, Expenses and Changes  in Net Assets – Budget and Actual Operating Expenses  

Pages 1-2   3-4

5 6-7 8-9 10-22

24-25 26 27 28-29

 

  INDEPENDENT AUDITOR’S REPORT

        To the Board of Directors Foresthill Public Utility District Foresthill, California       We have audited the accompanying financial statements of Foresthill Public Utility District (the “District”) as of and for the year ended June 30, 2007, as listed in the table of contents. These financial statements are the responsibility of the District’s management. Our responsibility is to express an opinion on these financial statements based on our audit.   We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.   In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Foresthill Public Utility District as of June 30, 2007 and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.   In accordance withGovernment Auditing Standards, we have also issued our report dated October 10, 2007 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants.                      

6234 BIRDCAGE STREET•CITRUS HEIGHTS, CA 95610-5949•[phone]

  nttauncoAcc li RTBE .    W RO A nAuocc NHOJ   NOS orporatintancy C ifdeP bu no C   reit

    The Management’s Discussion and Analysis is not a required part of the financial statements but is supplemental information required by the Government Auditing Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the information and express no opinion on it.   The supplemental information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of Foresthill Public Utility District. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.      

  Citrus Heights, California October 10, 2007                                                          

 

FORESTHILL PUBLIC UTILITY DISTRICT            fow.wwihllertsoc mup.d BOARD OF DIRECTORS Brett C. Grant Kurt W. Reed, General Manager George S. Shaw Paul Chamberlain, District Counsel Gregory L. Wells Duane L. Frink William L. Sadler, Jr.   Management’s Discussion and Analysis For Fiscal Year July 1, 2006 - June 30, 2007   The following discussion and analysis of the Foresthill Public Utility District (the “District”) and its financial performance provides an overview of the District’s financial activities, prepared by its management for the year ended June 30, 2007. This discussion and analysis should be read in conjunction with the District’s financial statements and accompanying notes, which follow this section.   Background   The District was formed in 1950 pursuant to the provisions of Section 15501 et. seq. California Public Utilities Code for the purpose of operating a water system. The District’s service area comprises the unincorporated community of Foresthill, California, located in Placer County approximately 60 miles Northeast of Sacramento. The District is governed by a five member Board of Directors, and currently employs 10 full-time employees. The District currently incorporates an area of approximately 13,300 acres and contains primarily residential development. The District has a population of approximately 5,900, and as of June 30, 2007 provided 1,941 water service connections.   Rates and Charges   The District places a high priority on rate stability while providing exceptional service to its customers. To control rate increases the District implements a conservative, long-term planning approach that controls spending and focuses expenditures on the highest priorities. The District’s water rates increased 13.65% in December 2006, the first increase since 2001. This brought the rate for basic residential service for 0- 10,000 gallons from $22.00 to $25.00 per month.   Financial Reporting   Management’s discussion and analysis of the Foresthill Public Utility District’s financial performance provides an overview of the District’s activities, as well as, its financial condition for the year ended June 30, 2007. For this report, the District has implemented Governmental Accounting Standards Board (GASB) Statement No. 34 that establishes financial reporting standards for state and local governments, including enterprise districts such as Foresthill PUD. In upcoming Fiscal Year 2007-2008 District plans to complete an actuarial regarding District paid retiree benefits in order to satisfy GASB Statement No. 45 with full implementation occurring Fiscal Year 2008-2009.         P.O. Box 266 24540 Main Street Foresthill, California 95631-0266 [phone] Fax [phone]  

The District’s finances span three separate funds:   1.   Enterprise Fund – this is the operating fund of theDistrict. It is used to account for the day-to- day operations, which is financed and operated in a manner similar to private business enterprises. This allows the District to determine that the costs (expenses, including depreciation) of providing drinking water on a continuing basis are financed or recovered primarily through user charges. Also accounted for within the Enterprise Fund: 2003 Certificate of Participation – Sugar Pine Project Acquisition – Issuance of Certiifcate(s) of Participation through California  Special District Finance Corporation pledging revenues of District to repay twenty-five (25) year debt. November 2003 the District acquired the Sugar Pine Dam & Reservoir Project from U.S. Bureau of Reclamation. A $6.50 Sugar Pine Surcharge is collected each month from each active water customer to provide sufficient revenues for retirement of debt service. 2.    createdImprovement Bond Fund – in 1982 the District the existing treatment plant by assessing all parcels within District boundaries. This assessment will continue for 40 years or until which time the assets equal the liabilities and the debt can be extinguished. 3.   Assessment District No. 2 – in 1997 the Districtupgraded its distribution system to improve fire flow and pressures in the system. The improvements were funded by assessing each parcel within 500 feet of an existing main water line. This assessment also will continue for 40 years or until which time the assets equal the liabilities and the debt can be extinguished.   Financial Highlights   •   2006-2007 General Fund revenues were up 17.12% over Fiscal Year 2005-2006 revenuesFiscal Year ($1,279,578 vs. $1,092,527). Expenses were up 3.24% for the same period ($1,084,163 vs. $1,050,177).   •   End of Fiscal Year 2006-2007 District General Reserve Fund increased 9.78% compared to the previous year ($538,286 vs. $490,330).   •Contributed Revenue for Fiscal Year 2006-2007 was $183,275. is the total dollar value of This   constructed and installed water system infrastructure, equipment and studies of same, paid for by new development and others formally accepted by District Board of Directors for Operations and Maintenance.     1. Walnut Orchard Subdivision - infrastructure $183,275   Work in Progress Preparation of Master Plan update. Anticipated acceptance December 12, 2007. Work being performed by Eco:Logic Engineering Firm. Cost to date: $81,361.   Requests for Information Interested persons may direct their inquiries regarding the information contained in this Annual Financial Report to:   Kurt W. Reed, General [e-mail] [phone] Patricia L. Pappas, Business [e-mail] [phone] PO Box 266 24540 Main Street Foresthill, CA 95631  

4

           

 12,275,413 11,887,213  4,074,344 3,734,612  8,201,069 8,152,601 - -                                        8,201,069 8,152,601  168,141 175,961

FORESTHILL PUBLIC UTILITY DISTRICT COMBINED BALANCE SHEET   June 30, 2007 (with comparative totals for fiscal year ended June 30, 2006)    ASSETS  Totals  (Memorandum  Enterprise Improvement Assessment only)  Fund Bond Fund District No. 2 2007 2006 Current assets: Cash in checking $ 12,640 $ $ $ 12,640 $ 3,894 Temporary investments 538,286 538,286 490,330 Accounts receivable 119,050 119,050 94,604 Prepaid expenses - - - Inventory - materials and supplies 33,984 33,984 41,001   Total current assets 703,960 703,960 629,829     Capital assets, at cost (Note 4) 12,275,413 Less, accumulated depreciation 4,074,344  8,201,069 Construction in progress -    8,201,069   Debt issuance costs, net 168,141   Restricted assets: Temporary investment – reserves 526,593 Certif. of Partic. – reserve fund 270,127    796,720   Improvement Bond Fund: Future assessments receivable Temporary investments     Assessment District No. 2: Temporary investments 439,515 439,515 408,618 Future assessments receivable 2,309,707 2,309,707 2,415,072    $ 9,869,890 $ 653,402 $ 2,749,222 $13,272,514 $13,379,242   See notes to financial statements 5  

 

     

438,031 215,371

 526,593 663,138  270,127 269,379  796,720 932,517

 438,031 411,684  215,371 252,960

  

   

 

LIABILITIES AND NET ASSETS  Totals  (Memorandum Enterprise Improvement Assessment only)  Fund Bond Fund District No. 2 2007 2006

                  Current liabilities: Current portion of long-term  debt (Note 6) $ 100,000 Current portion of  capital lease (Note 12) 34,465 Accounts payable 6,324 Compensated absences payable 37,369 Customer deposits 28,163   Total current liabilities 206,321   Long-term debt, net of  current portion (Note 6) 2,795,000  Add, bond premium, net  of amortization 28,143  2,823,143 Capital lease (Note 12) 49,171  2,872,314   Net assets: Invested in capital assets, net  of related debt 5,222,433 Restricted (Note 11) 766,256 Unrestricted 802,566  6,791,255   Improvement Bond Fund: Bonds payable (Note 5) Fund equity   Assessment District No. 2: Bonds payable (Note 9) Fund deficit                 $9,869,890        

$ $ $ 100,000 $ 100,000  34,465 24,719  6,324 8,147  37,369 38,744  28,163 27,213  206,321 198,823

         

       

495,000 158,402

 2,795,000 2,895,000  28,143 30,476  2,823,143 2,925,476  49,171 38,684  2,872,314 2,964,160

 5,222,433 5,063,722  766,256 932,517  802,566 731,686  6,791,255 6,727,925

 495,000 515,000  158,402 149,644

 3,081,600 3,081,600 3,125,700  ( 332,378) ( 332,378) ( 302,010) $ 653,402 $2,749,222 $13,272,514 $13,379,242

   

 FORESTHILL PUBLIC UTILITY DISTRICT  STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS  for the year ended June 30, 2007  (with comparative totals for fiscal year ended June 30, 2006)    2007 2006 Operating revenues: Sales - residential $ 751,871 $ 644,933 - business 203,883 194,780 - industrial 311 285 Service connections 11,250 26,875 Will serve 74,300 173,000 Sugar Pine surcharge 175,597 173,514 Other 65,105 43,781   Total operating revenues 1,282,317 1,257,168   Operating expenses: Source of supply 61,864 79,545 Pumping 7,286 6,985 Water treatment 130,025 120,343 Transmission and distribution 186,856 124,369 Customer accounts 17,440 19,586 Administrative and general 561,375 467,564 Depreciation 339,976 323,454   Total operating expenses 1,304,822 1,141,846   Operating income (loss) ( 22,505) 115,322   Non-operating income and (expense): Interest income 69,574 47,326 Property taxes 78,112 24,631 Interest expense ( 145,070) ( 142,079) Assistance - Assessment District #2 ( 100,000) ( 100,000) Loss on disposal ( 56) -  ( 97,440) ( 170,122)     Income before contributions ( 119,945) ( 54,800)   Capital contributions 183,275 473,057   Changes in net assets (carried forward) 63,330 418,257        

     

See notes to financial statements 6

 

 

 

   

 2007   $ 63,330

6,727,925 $6,791,255

 2006 $ 418,257

6,309,668 $6,727,925

FORESTHILL PUBLIC UTILITY DISTRICT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS, continued  for the year ended June 30, 2007  (with comparative totals for fiscal year ended June 30, 2006)            Change in net assets (brought forward)   Total net assets:    Beginning    Ending                                                          

   

See notes to financial statements 7

 

 78,112

FORESTHILL PUBLIC UTILITY DISTRICT  STATEMENT OF CASH FLOWS    for the year ended June 30, 2007  (with comparative totals for fiscal year ended June 30, 2006)    2007   Cash flows from operating activities:  Receipts from customers $1,257,871  Payments to suppliers ( 529,636)  Payments to employees ( 424,953)    Net cash provided by operating activities 303,282     Cash flows from noncapital financing activities:  Receipts from property taxes and  other nonoperating income   Cash flows from capital and related financing  activities:  Capital contributions  Purchase of capital assets  Interest paid on capital debt  Establish Reserve Fund-COP issue  Assistance to Assessment Dist. No. 2  Proceeds from capital leases  Principal payments on long-term debt            Cash flows from investing activities:  Interest income   Net increase (decrease) in cash and cash equivalents   Cash and cash equivalents:  Beginning of year    End of year                

183,275 ( 388,500) ( 145,070) ( 750) ( 100,000) 46,366 ( 126,132) ( 530,811)  69,574 ( 79,843) 1,157,362 $1,077,519

See notes to financial statements 8    

 2006 $1,249,028 ( 462,536) ( 376,280)  410,212

 24,631

473,057 ( 573,180) ( 142,079) ( 4,178) ( 100,000) -         ( 123,338) ( 469,718)  47,326 12,451 1,144,911 $1,157,362