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Home My WebLink About1987 Audit Report CITY OF ST. JOSEPH, MINNESOTA AUDITED FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 1987 MARLIN J. BOEeKMANN Certified Public Accountant Watkins, Minnesota CITY OF ST. JOSEPH, MINNESOTA TABLE OF CONTENTS December 31, 1987 Reference Page I. INTRODUCTORY SECTION City Officials 1 II. FINANCIAL SECTION A. General Purpose Financial Statements Auditor's Report 2 Combined Balance Sheet-All Fund Types and Account Groups Exhibit 1 3 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance-All Government Fund Types Exhibit 2 4 Combined Statement of Revenue, Expenditures, and Changes in Fund Balance-Budget and Actual- General and Special Revenue Fund Types Exhibit 3 5 Statement of Revenues, Expenses, and Changes in Retained Earnings-Proprietary Fund Type Exhibit 4 6 Statement of Changes in Financial Position- Proprietary Fund Type Exhibit 5 7 Notes to the Financial Statements 8 B. Combining and Individual Fund and Account Group Statements and Schedules General Fund - Balance Sheet Exhibit A-1 19 Statement of Revenues, Expenditures and Changes in Fund Balances-Budgeted and Actual Exhibit A-2 20 Schedule of Revenues-Budgeted and Actual Exhibit A-3 21 Schedule of Expenditures-Budgeted and Actual Exhibit A-4 22 Special Revenue Fund - Balance Sheet Exhibit B-1 24 Statement of Revenues, Expenditures, and Changes in Fund Balance Exhibit B-2 25 Statement of Revenues, Expenditures, and Changes in Fund Balances-Budgeted and Actual Exhibit B-3 26 Capital Projects Fund - Combining Balance Sheet Exhibit C-1 27 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Exhibit C-2 28 Debt Service Funds - Combining Balance Sheet Exhibit D-1 29 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Exhibit D-2 30 Enterprise Funds - Combining Balance Sheet Exhibit E-1 31 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings Exhibit E-2 32 Combining Statement of Changes in Financial Position Exhibit E-3 33 Schedule of Changes in Fixed Assets Exhibit E-4 35 CITY OF ST. JOSEPH, MINNESOTA TABLE OF CONTENTS December 31, 1987 (Continued) Reference Date - General Fixed Asset Group of Accounts - Statement of General Fixed Assets by Fund Exhibit F-1 36 General Long-Term Group of Accounts - Statement of General Long-Term Debt Exhibit G-1 37 Combined Schedule of Indebtedness Exhibit G-2 38 III. SINGLE AUDIT ACT REPORTS Auditor's Report on Supplementary Information Schedule of Federal Financial Assistance 39 Schedule of Federal Grant Activity 40 Auditor's Report on Compliance With State Laws 41 Auditor's Report on Compliance With Laws and Regulations- Federal Programs 42 Auditor's Combined Report on Internal Controls - Federal Programs 44 CITY OF ST. JOSEPH, MINNESOTA CITY OFFICIALS For the Year Ended December 31, 1987 ELECTED OFFICIALS TERM OF OFFICE TERM EXPIRES Mayor Michael Loso Two Years 12-31-88 Councilman Ross Rieke Four Years 12-31-88 Councilman Leo Sadlo Four Years 12-31-88 Councilman Steven Dehler Four Years 12-31-90 Councilman Donald Reber Four Years 12-31-90 OFFICIALS NOT ELECTED City Clerk/Administrator Rachel Stapleton -1- CERTIFIED PUBLIC ACCOUNTANT ~rli.. 1~ 1!illtttkmJ:.... (THE CONVENT) WATKINS, MINNESOTA 55389 TEL. (61 2) 764-5822 To the Honorable City Mayor and Members of the City Council City of st. Joseph St. Joseph, Minnesota 56374 I have examined the ~ombined financial statements of the City of St. Joseph, St. Joseph, Minnesota for the year ended December 31, 1987, as listed in Section II-A of 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 pro- cedures 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 St. Joseph, Minnesota at December 31, 1987, and the results of its operations and the changes in financial position of its proprietary fund type for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding yéar. My examination was made for the purpose of forming an opinion on the com- bined financial statements taken as a whole. The combining individual fund, and account group financial statements and schedules listed in Sec- tion II-B of the Table oY Contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the City of St. Joseph, Minnesota. The information has been subjected to the auditing procedures applied in the examination of the combined financial statements and, in my opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. Watkins, Minnesota ~¿~~~ June 17, 1988 MARLIN J. BOECKMANN, C.P.A. -2- I - - - - .. - - - .. - - - 1-3 L' ;Þ ::J H C/) CD ;Þ C/) ::ö1-3 1-3 '"'1 1-3 L' OJ 1-3 0 ::s: I-3H OJL' tJtJtJ;Þ;ÞL'I-3;ÞC/)H;þI-3HO 1:':1 :::s 1:':10 0 s::; 0 ~. 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CD PJ ~. çt" f-' f-' I :::s (J çt":::s 0. 1:':1 0 CD '0 CD :::s CD çt"CD o.o.:::s <: O":::s (J CD CD 0 0 ~ PJ CD (J D ()q 0.8 0.0.1-30. H¡ '"'S (J CD CD f-'.o tJ ~. 0 f-''"'S c:: '"'S CD ::J 0 ::ö:::s o.tJ:::S CD s::; ::ö CD EXHIBIT 2 CITY OF ST. JOSEPH, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENT FUND TYPES For the Year Ended December 31, 1987 Total Governmental Fund Types (Memorandum Only) Special Capital Debt December December General Revenue Projects Service 31, 1987 31, 1986 REVENUES: Taxes $ 124,868 $ $ $ $ 124,868 $ 118,577 Licenses/Permits 22,267 22,267 17 ,746 Intergovernmental Revenue: Federal 1,509 7,159 274,246 282,914 319,657 State 346,517 346,517 329,028 Charge for Servo 75,890 18,446 94,336 80,314 Fines/Forfeits 29,032 29,032 25,087 Assessments 7,437 353,485 51,134 412,056 241,639 Bond Proceeds 1,375,640 Other/Interest 53,356 4,046 44,291 86,701 188,394 163,846 TOTAL REVENUES $ 660,876 $ 11,205 $ 690,468 $ 137,835 $1,500,384 $2,671,534 OTHER SOURCES: Transfers from Other Funds $ 83,686 $ $ $ 201,343 $ 285,029 $ 331,574 TOTAL REVENUES & OTHER SOURCES $ 744,562 $ 11 , 205 $ 690,468 $ 339,178 $1,785,413 $3,003,108 EXPENDITURES: General Govern- ment $ 141,910 $ $ $ $ 141,910 $ 134,401 Public Safety 184,412 184,412 188,666 Streets/Highways 257,030 88 257,118 119,560 Recreation 18,215 18,215 19,412 Capital Outlay- Equipment 30,640 Other 653,607 653,607 848,980 Other/Interest 3,830 615,220 619,050 173,002 TOTAL EXPENDITURES$ 605,397 $ 88 $ 653,607 $ 615,220 $1,874,312 $1,514,661 OTHER USES: Transfers to Other Funds $ 196,066 $ 83,686 $ 101,343 $ $ 381,095 $ 353,879 TOTAL EXPENDITURES & OTHER USES $ 801,463 $ 83,774 $ 754,950 $ 615,220 $2,255,407 $1,868,540 NET INCREASE (DE- CREASE) IN FUND BALANCE DURING THE YEAR $ (56,901) $ (72,569) $ (64,482) $ (276,042) $ (469,994) $1,134,568 FUND BALANCE, January 1 816,343 133,349 477 , 626 1,046,687 2,474,005 1,339,437 FUND BALANCE, December 31 $ 759 442 $ 60 780 $ 413 144 $ 770 645 H!~~~~~H *~!~¡~~~~~ =====~=== =====~=== ======~=== ======~=== The notes to the financial statements are an integral part of this statement. -4- I I . - - - - - - - - - - - - - - - - 1-3 '"'1 '"'1 tJZ 0 1:':1 0 ::ö ::J e:: e:: e::1:':I 1-3 ;x: 1-3 1:':1 CD Z Z ::ö1-3 ::r: 'l: ::r: <: tJ tJ H 1-3 1-31:':1 0::ÖC/)'l:01:':l 1-3 1-31:':1 1-3 0'"'10 HL'I-31:':1 :::s ZH 0 '1 ::ö çt"CD çt"S::; CD Z 0 '1 ::ö 0 çt" ~. ::J :::s ~. 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JOSEPH, MINNESOTA STATEMENT OF REVENUES, EXPENSES, & CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES For the Year Ended December 31, 1987 1987 1986 OPERATING REVENUE: Water $ 83,342 $ 56,728 Plant Operation and Maintenance 68,905 63,967 Sanitation 30,447 25,002 TOTAL $182,694 $145,697 OPERATING EXPENSES: Water $ 67,104 $ 66,787 Plant Operation and Maintenance 113,737 57,951 Sanitation 57,880 44,349 TOTAL $238,721 $169,087 OPERATING INCOME (LOSS) $(56,027) $(23,390) OTHER INCOME (EXPENSES) Transfers from Other Funds $ 96,066 $ 22,304 Interest Income 9,292 4,470 TOTAL OTHER INCOME $105,358 $ 26,774 NET INCOME (LOSS) $ 49,331 $ 3,384 RETAINED EARNINGS, (DEFICIT) January 1 (80,615) (83,999) RETAINED EARNINGS, (DEFICIT) December 31 H~h~~~) *~~~!~~~) The notes to the financial statements are an integral part of this statement. -6- EXHIBIT 5 CITY OF ST. JOSEPH, MINNESOTA STATEMENT OF CHANGES IN FINANCIAL POSITION- PROPRIETARY FUND TYPE For the Year Ended December 31, 1987 1987 1986 RESOURCES PROVIDED: Operations: Net Income $ 49,331 $ 3,384 Add (deduct) Items Not Affecting Working Capital: Depreciation 40,846 16,765 Loss on Disposal of Equipment 25,412 393 Total Funds Provided by Operations $115,589 $ 20,542 OTHER SOURCES OF FINANCIAL RESOURCES: Contribution by Other Funds 653,608 848,980 TOTAL RESOURCES PROVIDED BY ALL SOURCES $769,197 $869,522 USES OF FUNDS: Additions to Plant and Equipment $673,406 $848,980 TOTAL RESOURCES USED $673,406 $848,980 INCREASE IN WORKING CAPITAL ~_221.72! $ 20 542 -------- ====!=== REPRESENTED BY CHANGES IN: Current Assets - Increase (decrease): Cash $ (3,594) $<33,990) Investments 138,200 27,000 Accounts Receivable (26,203) 27,032 Interest Receivable 810 (354) Special Assessments Receivable 2,840 Due From Other Funds 1,600 Due From Other Governmental Units 271 242 TOTAL CURRENT ASSETS $113,924 $ 19,930 Current Liabilities - Increase (decrease): Accounts Payable $(17,421) $ 612 Deferred Revenue (2,840) Due to Other Funds (195) Deficit Cash Balance 2,323 TOTAL CURRENT LIABILITIES $(18,133) $ 612 INCREASE (DECREASE) IN WORKING CAPITAL *=~~~¡~~ ~_~º1.2~~ -------- The notes to the financial statements are an integral part of this statement. -7- CITY OF ST. JOSEPH, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 Note 1 - Summary of Significant Accounting Policies The accounting policies of the City of St. Joseph conform to generally accepted accounting principles applicable to governmental units. The follow- ing is a summary of the significant accounting 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 expense, 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 activities are controlled. The various funds are grouped, in the financial statements in this report into five generic fund types and two broad account group categories as described in the remainder of A and of F and H of this Note. I. 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 certain revenue sources that are legally restricted to expenditures for specified purposes. Capital Projects Funds - The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construct- ion of major capital facilities. Debt Service Funds - Debt Service Funds account for the accumulation of assets dedicated to future payment of existing long-term debt and the interest on that debt. PROPRIETARY FUNúS: Enterprise Funds - Enterprise Funds are used to account for opera- tions that are financed and operated in a manner similar to private business enterprises where the intent is that the costs (expenses) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. II. TYPES OF ACCOUNT GROUPS: Two different account groups are maintained. Account group classi- -8- fications are established to account for the City's general fixed assets and general long-term indebtedness. The general fixed asset account group is comprised of the accounts maintained for the City's investment in land, buildings, improve- ments other than buildings, machinery and equipment, office furni- ture, vehicles and other equipment. These assets are recorded in this account group at cost and not depreciated. The general long-term debt account group is comprised of the accounts maintained for outstanding bonds and loans payable. An account group is not a fund, but rather comprises a self-balancing group of accounts. B. Bases of Accounting The modified accrual basis of accounting is followed for the general, capital projects, debt service, and special revenue funds. Under this method of accounting, revenues are recognized when received in cash, except for material or available revenues which are accrued to reflect revenues earned and available to fund operations for that period. Expen- ditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred. The accrual basis of accounting is followed in the proprietary funds. Under this method of accounting revenues are recognized when earned, and expenses are recorded as incurred. C. Budgetary Data Annual budgets approved by the City Council are adopted for the City. An object budget is used with emphasis on allocations of resources to given city units for specific revenues and expenditures. The budget is prepared on a basis consistent with the accounting utilized in each fund. Budgetary comparisons are included in the appropriate financial state- ments in this report. D. Cash and Temporary Investment Cash balances from all funds may be pooled and invested to the extent available in certif~cate of deposit or treasury bills. Earnings from such investments are allocated to the funds on the basis of applic- able cash balance participation by each of the funds. E. Recognition of Property Taxes Property taxes are set by the City Council with the levy certified to the County, which acts as collection agent, in October prior to the year collectible. Such taxes constitute a lien on the property on January 1 of the year collectible. The amount of uncollected property taxes for -9- the City are immaterial. The delinquent amounts are collectible, so all delinquents are accrued at the end of each year. F. General Fixed Assets Group of Accounts General fixed asset purchases are recorded as expenditures in the various funds at the time of purchase. Such assets of $250 and over are capitalized at cost, or at appraisal if cost is not available, in the General Fixed Asset Group of Accounts. No depreciation is provided on these assets. Public domain assets are not capitalized. G. Enterprise Funds Fixed Assets and Depreciation Enterprise Funds fixed assets, including public domain type fixed assets, of $250 and over are capitalized. The assets, other than land, are de- preciated on a straight-line basis over lives of 5 to 50 years. H. General Long-Term Debt Group of Accounts General Long-Term Debt consists primarily of bonds payable incurred to pay for construction on special assessment projects. Though the bonds are the primary obligation of the benefitted assessees, the City's full faith and credit are committed in case of their default, so the bonds are recorded in the City's General Long-Term Debt Group of Accounts. I. Vacation and Sick Pay The City does not accrue for vacation and sick pay. The amount of the accrual would not be material. J. Total Columns and Combined Statements Total columns on the combined statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. K. Reporting Entity The Governmental Standards Board Statement #1 requires municipalities to apply certain criteria to determine whether related agencies should be included in the municipalities' financial statements. The City of St. Joseph has considered its oversight responsibilities to other agencies financial interdependence with them, and the other criteria stipulated in Statement #1, and has concluded that no outside agencies' activity should be included in the City's financial statements. The City's con- clusions are consistent with the interpretations of the Minnesota Society of Certified Public Accountant's Technical Development Review Committee, as described on Pages 6 and 7 of its letter dated November 11, 1983. All -10- component units are included in the City's financial statements. L. Deferred Revenue Certain receivables are recognized, before they are currently due, at the time of levy. These receivables are offset by deferred revenue; deferred revenue is reduced as the amounts receivable become measurable and available. Note 2 - Cash and Investments In accordance with Minnesota statutes, the City maintains deposits at those depository banks authorized by the City Council. All such de- positories are members of the Federal Reserve. Minnesota Statutes require that all City deposits be protected by insur- ance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. The carrying amount of the City's deposits with financial institutions was $2,214,077 consisting of Certificates of Depqsits and checking accounts and the bank balance collateral was $3,355,000. Collateral was categorized as follows: Insurance by FDIC. . . . . · · · · · · · · · · · · · · $ 100,000 Collateral in Safekeeping · · · · · · · · · · · · · · .3.255,000 Total Bank Collateral. . . · · · · · · · · · · · · · · *~~~~~~~~~ Note 3 - Retirement Plans The Volunteer Firemen's Fund is a pension plan financed by contributions from the State, City and St. Joseph and st. Wendell Townships. The City is obligated to contribute to the Fund according to a formula that com- pares the growth in the estimated pension liability to the annual esti- mated state aid and interest earnings of the pension fund. In 1987, the City accrued $6,163 for contributions to the fund. Early in 1984 the City Council passed an ordinance that approved the increase of the volunteer firemen's lump sum pension benefit from $8,000 to $12,000 for retirement after 20 years of service. The effect of this increase in benefits was to increase the deficit from full funding in the Firemen's retirement fund at 12-31-84 to $34,666 and the deficit has since been reduced to $11,691 at 12-31-87. All other City employees, with some minor exceptions such as students, must belong to the Public Employees Retirement Association (PERA) . 1987 contributions to PERA were $16,510 by the City and $10,128 by the employees. Total 1987 salaries were $225,398, of which $206,318 were covered by PERk. The Public Employees Retirement Association is state- wide and an individual city's portion of unfunded reserves is not avail- able because no city is directly liable for an unfunded liability under Minnesota Law. -11- Note 4 - Reserved Funds The General Fund records as Reserved Funds money which has been received for three specific purposes, but which at year end has not yet been expended for those purposes. These activities are: Joint Operating Fire - The fund receives its revenue from the City of st. Joseph, st. Joseph Township, and St. Wendell Township and funds are used for operating expenses for those areas. Special Police - This fund's revenues come only from state aid and must be spent on policeman's retirement contributions (PERA). Street Maintenance - Street Maintenance records receipts and spending for activities closely related to the Highways Division of the General Fund. The expenditures are limited to street maintenance, improvements, and the machinery and equipment serving those purposes. Revenues for this reserve fund are a special tax levy, contributions for snow removal, special assess- ments #19 and interest. The December 31, 1987 reserved balances for each of the funds were: Joint Operating Fire. · · · · · · · · · · · · .$105,888 Special Police. . . · · · · · · · · · · · · · . 2,272 Street Maintenance. · · · · · · · · · · · · · . 13,628 Net Balance Reserved, per General Fund Balance Sheet. . · · · · · · · · · · · · · ·~!~!~7ªª -------- Note 5 - 1986 Improvement Construction Capital Projects Fund The City of st. Joseph has entered into an agreement with the City of St. Cloud to hook up with the latter's Sanitary Sewage Collection and Treatment Facility. Under this arrangement, the City of St. Joseph discharges its sewage to the St. Cloud facility and pays a user fee for the sewage treatment. The st. Joseph facility con- sists of a pumping station, collector tank and lines. Note 6 - Detailed Indebtedness Schedules See next page. -12- Note 6 - Detailed Indebtedness Schedules Schedule A City of st. Joseph Schedule of Indebtedness - Bonds Payable December 31, 1987 Beginning Ending Bond New Retirement Bond Balance Bond of Balance Bonds Payable 1-01-87 Issues Bonds 12-31-87 1972 Water & Sewer Improvement $ 45,000 $ $ 10,000 $ 35,000 1978 Improvement - East Side 130,000 15,000 115,000 1978-A Street Improvement 27,000 3,000 24,000 1983 Improvement 365,000 60,000 305,000 1986 Improvement Const- ruction 1,400,000 360,000 1,040,000 Total Bonds Payable H~~g¡!~~~ ~--------- $ 448 000 H1.2!21.ººº ---------- ======~=== ---------- -13- - - - - - - - - - - - - - - - - - - - ........ ........ 0 ;Þ H tJ ;Þ I\) f-' s::; :::s :::s PJ a ---- ---- çt" :::s çt" çt" 0 H ;Þ (J >-<:s::; CD CD s::; :::s f-' çt" CD PJ '1 :::s çt" f-' PJ PJ f-' CD 0 çt" CD :::s '1 (J H¡ '1 0. 0. (J 'l: çt" 0 CD CD ~. PJ H H¡ (J 0" :::s 1:':1'<: ::ö (J çt" çt" ()q :::s a PJ (J 0 0. CD çt" s::; '1 '1 PJ OJ ~. :::s CD CD ~. PJ s::; PJ :::s çt" ()q çt" çt" f-' ()q (J ~. CD ::J PJ :::s (J 0 :::s tJo PJ '1 0 CD H¡ f-' '1 ~. 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II-> ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ :::s 110 00000000000000 0 110 00000000000000 · 1-3 110 00000000000000 0 1-3 ;Þ 1I-EfT -EfT L' II C/) II H 110'\ f-' :::s 110'0 f-'f-'I\) I\)W-l::"-l::"Vl 0'\ O'o--"¡ \0 0 çt" IIW VlOVlO--.J~~--.J~f-'\O\OO--"¡ CD ,I-> ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ '1 II CO 0000f-'0O--.J-l::"\OW\OW0'0 CD II--.J W--.JCOCOI\)\O-l::"--"¡OW-l::"I\)f-'W (J III\) --"¡VlOVl<X>\oWVlOVlf-'\OI\)W çt" Note 7 - Fund Deficiencies/Deficits Expenditures exceeded revenues in certain individual funds for the year ended December 31, 1987 as follows: General Fund. · · · · · · · · · · · · · · · · · · · · · · · .$ 56,901 Special Revenue Fund. · · · · · · · · · · · · · · · · · · · · 72,569 Capital Projects. · · · · · · · · · · · · · · · · · · · · · · 64,482 Debt Service Funds: 1986 Sewer. · · · · · · · · · · · · · · · · · · · · · · · · 449,101 1983 Improvement. · · · · · · · · · · · · · · · · · · · · · 35,492 1972 Sewer. · · · · · · · · · · · · · · · · · · · · · · · · 2,871 Enterprise Funds: Plant Operations and Maintenance . · · · · · · · · · · · · 13,470 No funds have deficit fund balances at December 31, 1987. The City's administration has made plans to eliminate deficit operations via decreasing expenditures in the General Fund and Capital Projects. Debt Service Funds represent cash flow temporary timing differences except for the 1983 Improvement which may require a future transfer in. Plant operations and maintenance deficit operations will be corrected with a user rate increase. Note 8 - Segment Information The City maintains three enterprise funds which provide water, sewer, and sanitation services. Segment information for the year ended December 31, 1987 is as follows: Plant Operation Total Sanitary Water and Enterprise Fund Fund Maintenance Funds Operating Revenue $ 30,447 $ 83,342 $ 68,905 $ 182,694 Operating Expenses 57,880 67,104 113,737 238,721 Operating Income (Loss) (27,433) 16,238 (44,832) (56,027) Other Income (Expenses) 27,467 46,529 31,362 105,358 Net Income (Loss) 34 62,767 (13,470) 49,331 Transfer from Other Funds 27,467 41,360 27,239 96,066 Fixed Assets: Additions 8,539 658,411 666,950 Deletions 25,412 25,412 Net Working Capital 4,979 117,416 112,624 235,019 Total Assets 9,702 394,072 1,902,594 2,306,368 Total Equity 4,979 378,703 1,893,652 2,277,334 Note 9 - Allowance for Uncollectible Assessments Receivable Generally, delinquent assessments and taxes receivable have been im- material in amount and ultimately collectible. The delinquencies in the 1983 Bond Improvement Debt Service Fund and its related debt, however, are $43,446 as of 12-31-87. Though these receivables are supported by -16- liens on the underlying property, the liens are not excercisable for a number of years, and the City has decided to make the conservative estimate of full allowance of the receivables as uncollectible. Note 10 - Changes in General Fixed Assets Jan. 1 Addi- Retire- Dec. 31 Balance tions ments Balance Land $ 49,879 $ 49,879 Buildings 241,442 241,442 Improvements other than Buildings 7,684 7,684 Machinery & Equipment 180,173 1,300 181,473 Office Furniture 23,826 4,530 28,356 Motor Vehicles 42,610 733 6,295 37,048 Other Equipment 86,067 880 3,738 83,209 TOTAL GENERAL FIXED ASSETS *~~~~~~1 $ 7 443 $ 10 033 *~~~!~~~ ====!=== ====~=== Note 11 - Due From Other Governments Due from Other Government Units includes primarily amounts due from the county. Note 12 - Interfund Receivable and Payable Interfund receivables and payables represent short-term inter fund financing amount. Schedule of Interfund Receivable and Payables: Due To: Water Fund. . . . . . . · · · · · · · · · · · · · · · $ 1,600 Capital Projects Fund . · · · · · · · · · · · · · · · 213,867 Plant Operation and Maintenance . · · · · · · · · · · 5,577 1986 Bond . . . . . . . · · · · · · · · · · · · · · · 648 Total Interfund Receivables *~~h~~~ -17- Due From: General Fund. · · · · · · · · · · · · · · · · · · · · · .$ 1,600 1986 Bond . . · · · · · · · · · · · · · · · · · · · · · · 213,867 Capital Projects Fund · · · · · · · · · · · · · · · · · · 6,030 Water Fund. . · · · · · · · · · · · · · · · · · · · · · · 195 Total Interfund Payables *~~h ~~~ Note 13 - Federally Assisted Programs - Compliance Audits Federally assisted programs for 1987 have been subjected to compliance audits. See the reports included in this report. -18- EXHIBIT A-l CITY OF ST. JOSEPH, MINNESOTA GENERAL FUND BALANCE SHEET December 31, 1987 ASSETS Cash $ 3,388 Investments 774,201 Taxes Receivable - Delinquent 7,844 Interest Receivable 1,642 Special Assessments Receivable 26,120 Tax Levies Receivable 1,240 Less: Deferred Revenue (1,240) Due From Other Governmental Units 27,740 TOTAL ASSETS *~~~~~~~ LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable $ 53,773 Due To Other Funds 1,600 Deferred Revenue 26 , 120 TOTAL LIABILITIES $ 81,493 Fund Balance: Reserved $121,788 Unreserved 637,654 TOTAL FUND BALANCE $759,442 TOTAL LIABILITIES AND FUND BALANCE *~~~!~~~ The notes to the financial statements are an integral part of this statement. -19- EXHIBIT A-2 CITY OF ST. JOSEPH, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGETED AND ACTUAL For the Year Ended December 31, 1987 Actual Over (Under) Budgeted Ac tual Budget --- REVENUES: General Property Tax $154,800 $124,868 $(29,932) Licenses and Permits 18,450 22,267 3,817 Intergovernmental Revenue 337,600 348,026 10,426 Charges for Services 57,400 75,890 18,490 Fines and Forfeits 23,500 29,032 5,532 Other 30,693 60,793 30,100 TOTAL REVENUE $622,443 $660,876 $ 38,433 OTHER SOURCES: Transfers From Other Funds 83,686 83,686 TOTAL REVENUES AND OTHER SOURCES $622,443 $744,562 $122,119 EXPENDITURES: General Government $149,400 $141,910 $ (7,490) Public Safety 147,608 184,412 36,804 Streets and Highways 219,275 257,030 37,755 Recreation 37,100 18,215 (18,885) Debt Service 2,270 2,268 (2) Other 11,800 1,562 (10,238) TOTAL EXPENDITURES $567,453 $605,397 $ 37,944 OTHER USES: Transfers to Other Funds 45,000 196.z.2~ 151,066 TOTAL EXPENDITURES AND OTHER USES $612,453 $801,463 $189,010 NET INCREASE (DECREASE) IN FUND BALANCE $ 9 990 $(56,901) ~~§§1.ª2!) ====!=== -------- FUND BALANCE, January 1 816,343 FUND BALANCE, December 31 ~7221.~~~ -------- The notes to the financial statements are an integral part of this statement. -20- EXHIBIT A-3 CITY OF ST. JOSEPH, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES - BUDGETED AND ACTUAL For the Year Ended December 31, 1987 Actual Over (Under) Budgeted Actual Budget TAXES: General Property Taxes $154,800 $124,868 $(29,932) TOTAL TAXES $154,800 $124,868 $(29,932) LICENSES AND PERMITS: Business Licenses & Permits $ 12,700 $ 14,209 $ 1,509 Non-Business Licenses & Permits 5,750 8,058 2,308 TOTAL LICENSES AND PERMITS $ 18,450 $ 22,267 $ 3,817 INTERGOVERNMENTAL REVENUE: Federal Grants $ $ 1,509 $ 1,509 State Grants: Local Government Aid 258,600 258,352 (248) Homestead Credit 59,000 65,172 6,172 Police 10,000 8,847 (1,153) Fire 10,000 11,566 1,566 Other 2,580 2,580 TOTAL INTERGOVERNMENTAL REVENUE $337,600 $348,026 $ 10,426 CHARGES FOR SERVICES: General Government $ 3,400 $ 9,355 $ 5,955 Fire Protection 53,800 47,918 (5,882) Highway Assessments 15,463 15,463 Recreation Fees 2,928 2,928 Other 200 226 26 TOTAL CHARGES FOR SERVICES $ 57,400 $ 75,890 $ 18,490 FINES AND FORFEITS: County Court $ 21,500 $ 26,381 $ 4,881 Police Department 2,000 2,651 651 TOTAL FINES AND FORFEITS $ 23,500 $ 29,032 $ 5,532 OTHER REVENUES: Interest $ 25,000 $ 53,090 $ 28,090 Special Assessments 3,218 7,437 4,219 Other 2,475 266 (2,209) TOTAL OTHER REVENUES $ 30,693 $ 60,793 $ 30,100 TOTAL REVENUES $622,443 $660,876 $ 38,433 OTHER SOURCES: Transfer From Other Funds $ $ 83,686 $ 83,686 TOTAL REVENUES AND OTHER SOURCES $622,443 $744,562 $122,119 -------- -------- -------- -------- -------- -------- The notes to the financial statements are an integral part of this statement. -21- EXHIBIT A-4 CITY OF ST. JOSEPH, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGETED AND ACTUAL For the Year Ended December 31, 1987 Actual Over (Under) Budgeted Actual Budget GENERAL GOVERNMENT: Legislative: Council $ 15,000 $ 15,150 $ 150 Legislative Committees & Special Bodies 4,000 5,186 1,186 Ordinance and Proceedings 2,000 830 (1,170) Executive: Mayor 3,000 5,359 2,359 City Clerk: Elections 500 5 (495) Capital Outlay 3,000 <3,000) Salaries and Administration 74,200 60,674 (13,526) Financial Administration: Audit 6,000 5,275 (725) Accounting 13,200 15,827 2,627 Treasurer 2,700 1,588 (1,112 ) Assessor 3,500 2,247 (1,253) Other Legal: Attorney Fees 12,000 11,712 (288) General Government Buildings: Government Buildings 9,500 10,282 782 Other General Government: Planning and Zoning 800 7,775 6,975 TOTAL GENERAL GOVERNMENT $149,400 $141,910 $ (7,490) PUBLIC SAFETY: Police Protection: Administration $ 92,500 $115,095 $ 22,595 Capital Outlay 14,100 (14,100) Continuing Education 1,000 307 (693) Police Support Services: Communication Services 2,500 2,453 (47 ) Automotive Services 6,500 6,953 453 Fire Protection: Administration 1,000 2,204 1,204 Fire Fighting 20,008 38,126 18,118 Continuing Education 1,155 1,155 Fire Communications 1,833 1,833 Fire Repair Services 2,415 2,415 Fire Station Building 2,433 2,433 Pension Relief Fund 6,000 6,163 163 Building Inspection: Administration 2,000 3,612 1,612 Other 2,000 1,616 (384) Animal Control 47 47 TOTAL PUBLIC SAFETY $147,608 $184,412 $ 36,804 -22- EXHIBIT A-4 CITY OF ST. JOSEPH, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGETED AND ACTUAL For the Year Ended December 31, 1987 (Continued) Actual Over (Under) Budgeted Actual Budget STREETS AND HIGHWAYS: Streets and Alleys: Maintenance $11 7 , 350 $192,554 $ 75,204 Paved Streets 73,000 44,935 (28,065) Snow Removal 2,500 (2,500) Capital Outlay-Equipment 8,425 2,033 (6,392) Other 2,000 2,736 736 Street Lighting: Power and Light 16,000 14,772 (1 ,228) TOTAL STREETS AND HIGHWAYS $219,275 $257,030 $ 37,755 RECREATION: Recreation Activities & Facilities: Supervision $ 8,000 $ 4,379 $ (3,621) Other 2,500 5,185 2,685 Parks and Playgrounds: Park Areas 18,000 6,915 (11,085) Capital Outlay-Equipment 8,600 1,736 (6,864) TOTAL RECREATION $ 37,100 $ 18,215 $(18,885) DEBT SERVICE: Other Long~Term Debt, Principal $ 2,100 $ 2,100 $ Other Long-Term Debt, Interest 170 168 (2) TOTAL DEBT SERVICE $ 2,270 $ 2,268 $ (2) OTHER: Other $ 11,800 $ 1,562 $(10,238) TOTAL OTHER $ 11,800 $ 1,562 $(10,238) TOTAL EXPENDITURES $567,453 $605,397 $ 37,944 OTHER USES: Transfers to Other Funds: Sanitation Fund $ 21,600 $ 27,467 $ 5,867 Other 23,400 168,599 145,199 TOTAL OTHER USES $ 45,000 $196,066 $151,066 TOTAL EXPENDITURES AND OTHER USES ~~~~d~~ *~~~~~~~ ~!ª21.º!º -------- The notes to the financial statements are an integral part of this statement. -23- EXHIBIT B-1 CITY OF ST. JOSEPH, MINNESOTA SPECIAL REVENUE FUND BALANCE SHEET December 31, 1987 Federal Revenue Sharing ASSETS Cash $ 2,459 Investments 60,000 Interest Receivable 271 TOTAL ASSETS L~~.!.nº -------- LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable $ 1,950 Fund Balance 60,780 TOTAL LIABILITIES AND FUND BALANCE ~_~~.!. nº -------- The notes to the financial statements are an integral part of this statement. -24- EXHIBIT B-2 CITY OF ST. JOSEPH, MINNESOTA SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1987 Federal Revenue Sharing REVENUES: U.S. Treasury $ 7,159 Interest 4,046 TOTAL REVENUES $ 11,205 EXPENDITURES: Street Improvement $ 88 TOTAL EXPENDITURES $ 88 OTHER USES: Transfers to Other Funds $ 83,686 TOTAL EXPENDITURES AND OTHER USES $ 83,774 NET INCREASE (DECREASE) IN FUND BALANCE DURING THE YEAR $(72,569) FUND BALANCE, January 1 133,349 FUND BALANCE, December 31 L2º1.7ªº -------- The notes to the financial statements are an integral part of this statement. -25- EXHIBIT B-3 CITY OF ST. JOSEPH, MINNESOTA SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1987 Federal Revenue Sharing Actual Over (Under) Budgeted Actual Budget REVENUES: U.S. Treasury $ $ 7,159 $ 7,159 Interest 4,046 4,046 TOTAL REVENUES $ $ 11, 205 $ 11,205 EXPENDITURES: Street Improvement $ $ 88 $ 88 TOTAL EXPENDITURES $ $ 88 $ 88 OTHER USES: Transfers to Other Funds $ 90,000 $ 83,686 $ (6,314) TOTAL EXPENDITURES AND OTHER USES $ 90,000 $ 83,774 $ (6,226) NET INCREASE (DECREASE) IN FUND BALANCE DURING THE YEAR *~~~~~~~) $(72,569) *=~¡!~~~ FUND BALANCE, January 1 133,349 FUND BALANCE, December 31 $ 60 780 ====~=== The notes to the financial statements are an integral part of this statement. -26- I . . I -. EXHIBIT C-1 I I - CITY OF ST. JOSEPH, MINNESOTA I CAPITAL PROJECTS FUND I COMBINING BALANCE SHEET ~ December 31, 1987 I I ~- i 1986 i Sewer ~ i ASSETS I Cash $ 3,608 i .- Investments 192,866 Interest Receivable 5,098 Special Assessments Receivable-Current 18,920 Special Assessments Receivable-Noncurrent 246,492 Due From Other Funds 213,867 Due From Other Governmental Units 8,000 ~ TOTAL ASSETS ~§ªª~ª2! -------- LIABILITIES AND FUND BALANCE Accounts Payable $ 4,265 Due To Other Funds 6,030 Deferred Revenue 265,412 TOTAL LIABILITIES $275,707 Fund Balance 413,144 TOTAL LIABILITIES AND FUND BALANCE ~§ªª~ª2! -------- The notes to the financial statements are an integral part of this statement. -27- I I I I I I I I I I I I I I I I I I I EXHIBIT C-2 CITY OF ST. JOSEPH, MINNESOTA CAPITAL PROJECTS FUND COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1987 REVENUES: Federal Grant Hook -ups Special Assessments Interest TOTAL REVENUES EXPENDITURES: Capital Outlay TOTAL EXPENDITURES OTHER USES: Transfers To Other Funds TOTAL EXPENDITURES AND OTHER USES NET INCREASE (DECREASE) IN FUND BALANCE FUND BALANCE (DEFICIT), January 1 FUND BALANCE, December 31 1986 Sewer $274,246 18,446 353,485 44,291 $690,468 $653,607 $653,607 $101,343 $754,950 (64,482) 477,626 ~~~~~~~~ -28- The notes to the financial statements are an integral part of this statement. 1_________ 1-3 l' ;Þ ::J H C/) CD ;Þ C/) 1-3 '"'1 L' OJ tJtJtJ C/)C/) I-3I-3HHO 1:':1 :::s 0 s::; ~. H CD¡::S::; '0'0 PJPJ:::S:3PJ 1-3 o 1-3 :::StJtJPJ L' 1-3 L'f-'CDCD CDCDl'~~çt"<:(J C/) çt" ;Þ o.CDS::;O" H 0 CD~' L'OOCD CDCD;:J CD L' H¡ CD~· 1-3 1-3 (J:::S '"'1 '"'1 CD ~. ~. 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JOSEPH, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1987 I Plant Opera- tion and I Sanitary Water Maintenance To ta 1 Fund Fund Fund 1987 1986 ASSETS I Current Assets: Cash $ 106 $ 6,362 $ 3,259 $ 9,727 $ 13,321 Investments 105,000 90,200 195,200 57,000 Accounts Receivable 9,537 16,029 22,186 47,752 73,955 I Interest Receivable 500 344 844 34 Sp. Assessments Rec. 2,840 2,840 Due From Other Funds 1,600 5,577 7,177 5,577 I Due From Other Govern- mental Units 59 454 513 242 I TOTAL CURRENT ASSETS $ 9,702 $132,785 $ 121,566 $ 264,053 $ 150,129 Fixed Assets: Land $ $ 2,336 $ 4,940 $ 7,276 $ 7,276 I Building 517,983 517,983 Less: Allow. for Depr. (12,950) (12,950) Treatment Plant/Lines 358,490 1,412,466 1,770,956 767 , 730 Less: Allow. for Depr. (120,021 ) (237,379) (357,400) (333,785) I Machinery & Equipment 34,009 107,632 141,641 71,138 Less: Allow. for Depr. (13,527) (11,664) (25,191) (27,366) Construction in Prog. 950,174 I TOTAL FIXED ASSETS $ $261,287 $1,781,028 $2,042,315 $1,435,167 TOTAL ASSETS $ 9 702 *~~~~~H H~~~~!~~~ ~~~~º~l.~~ª H~~~~~~~~ I ===::~=== ---------- LIABILITIES, CONTRIBUTIONS AND RETAINED EARNINGS I Current Liabilities: Deficit Cash Balance $ $ $ $ $ 2,323 Due To Other Funds 195 195 I Accounts Payable 4,723 12,334 8,942 25,999 8,578 Deferred Revenue 2,840 2,840 TOTAL LIABILITIES $ 4,723 $ 15,369 $ 8,942 $ 29,034 $ 10,901 I Contributions From Other Funds 3,725 265,135 2,039,758 2,308,618 1,655,010 I Retained Earnings, Unreserved 1,254 113,568 (146,106) (31,284) (80,615) Total Fund Equity $ 4,979 $378,703 $1,893,652 $2,277,334 $1,574,395 I TOTAL LIABILITIES, CON- TRIBUTIONS & RETAINED I EARNINGS $ 9,702 $394,072 $1,902,594 $2,306,368 $1,585,296 -------- -------- ---------- ---------- ---------- -------- -------- ---------- ---------- ---------- The notes to the financial statements are an integral part of this statement. I -31- I EXHIBIT E-2 I CITY OF ST. JOSEPH, MINNESOTA ENTERPRISE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENSE AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1987 I Plant Opera- tion and I Sanitary Water Maintenance Total Fund Fund Fund 1987 1986 REVENUES: Sales & Rental Charges $ 30,447 $ 66,779 $ 65,804 $ 163,030 $ 142,524 I Service & Permits 13,025 1,200 14,225 3,046 Miscellaneous 3,538 1,901 5,439 127 I TOTAL REVENUES $ 30,447 $ 83,342 $ 68,905 $ 182,694 $ 145,697 EXPENSES: I General & Administrative $ $ 34,547 $ 23,174 $ 57,721 $ 51,303 Waste Collection Cant. 57,880 57,880 44,349 Pumping & Utilities 11 , 282 11 , 282 6,277 Water Purification 5,107 5,107 4,452 I Water Distribution 7,393 7,393 3,165 Repairs & Maintenance 14,918 Sewage Treatment Plant 39,147 39,147 27,465 I Depreciation 8,775 32,071 40,846 16,765 Miscellaneous 19,345 19,345 393 TOTAL EXPENSES $ 57,880 $ 67,104 $ 113,737 $ 238,721 $ 169,087 I OPERATING INCOME (LOSS) $(27,433) $ 16,238 $ (44,832) $ (56,027) $ (23,390) I OTHER INCOME (EXPENSES) Transfer From Other Funds $ 27,467 $ 41,360 $ 27,239 $ 96,066 $ 22,304 I Interest Income 5,169 4,123 9,292 4,470 OTHER INCOME - NET $ 27,467 $ 46,529 $ 31,362 $ 105,358 $ 26,774 I NET INCOME (LOSS) $ 34 $ 62,767 $ (13,470) $ 49,331 $ 3,384 RETAINED EARNINGS, (DEFICIT) I January 1 1,220 50,801 (132,636) (80,615) (83,999) RETAINED EARNINGS, (DEFICIT) I December 31 $ 1 254 ~E11.2~~ ~_n~~1.~º~) $ <31 284) $ (80 615) ====:!:=== -------- ---------- ======:!:=== ======:!:=== I I The notes to the financial statements are an integral part of this statement. I -32- I El~H:¡:B:;:T E- 3 I CITY OF ST. ,JOSEPH, MINNESOTA ENTERPRISE FUNDS I COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION For the Year Ended December 31, 1987 I Plant Opera- tion and Sanitary Water Maintenance To ta 1 I Fund Fund Fund 1987 1986 SOURCES OF FINANCIAL RESOURCES: Operations Net Income (Loss) for I the Year $ 34 $ 62,767 $ (13,470) $ 49,331 $ 3,384 Add: Items Not Requiring Current Outlay of I Resources: Depreciation 8,775 32,071 40,846 16,765 Loss on Disposal of I Equipment 25,412 25,412 393 Total Resources Provided By Operations $ 34 $ 71,542 $ 44,013 $ 115,589 $ 20,542 I OTHER SOURCES OF FINANCIAL RESOURCES: I Contributions By Other Funds 653,608 653,608 848,980 TOTAL RESOURCES PROVIDED I BY ALL SOURCES $ 34 $ 71,542 $ 697,621 $ 769,197 $ 869,522 USE OF FINANCIAL RESOURCES: I Operations Net Income (Loss) For The Year $ $ $ $ $ I Less Items Not Requiring Current Outlay of Re- sources: I Depreciation Equipment Disposal Total Resources Used By I Operations $ $ $ $ $ OTHER USES OF FINANCIAL RESOURCES: I Acquisition of Fixed Assets 8,539 664,867 673,406 848,980 I TOTAL USES OF FINANCIAL RESOURCES $ 0 $ 8,539 $ 664,867 $ 673,406 $ 848,980 I NET INCREASE (DECREASE) IN WORKING CAPITAL t====~~ $ 63 003 $ 32 754 ~___221.72~ *===~~~~~~ ===:!=== ======~=== ---------- The notes to the financial statements are an integral part of this statement. I -33- I EXHIBIT E-3 I CITY OF ST. JOSEPH, MINNESOTA I ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION For the Year Ended December 31, 1987 I Plant Opera- I tion and Sanitary Water Maintenance Total Fund Fund Fund 1987 1986 I COMPONENT ELEMENTS OF INCREASE (DECREASE) IN WORKING CAPITAL: I Cash $ 46 $ (6,899) $ 3,259 $ <3,594) $ <33,990) Investments 77,000 61 , 200 138,200 27,000 I Accounts Receivable 1,061 565 (27,829) (26,203) 27,032 Interest Receivable 474 336 810 <354 ) Special Assessments Receivable 2,840 2,840 I Due From Other Funds 1,600 1,600 Due From Other Govern- mental Units 11 260 271 242 I Accounts Payable (1,084) (9,802) (6,535) (17,421) 612 Deferred Revenue (2,840) (2,840) Due To Other Funds (195) (195) Deficit Cash Balance 2,323 2,323 I NET INCREASE (DECREASE) IN WORKING CAPITAL *=====~~ L~~l.ºº~ $ 32 754 $ 95 791 L__~º1.2~~ I -------- ======!=== ======!=== ---------- I I I I I I The notes to the financial statements are an integral part of this statement. I -34- I EXHIBIT E-4 I I CITY OF ST. JOSEPH, MINNESOTA ENTERPRISE FUNDS SCHEDULE OF CHANGES IN FIXED ASSETS For the Year Ended December 31, 1987 I I Jan. 1 Addi- Retire- Deprec- Dec. 31 Balance tions ments iation Balance WATER FUND I Land $ 2,336 $ $ $ $ 2,336 Buildings 353,819 4,671 358,490 I Less: Allow. for Depr- eciation (112,653) 7,368 (120,021 ) Machinery and Equipment 30,141 3,868 34,009 I Less: Allow. for Depr- eciation (12,120) 1,407 (13,527 ) TOTAL WATER FUND $ 261,523 $ 8,539 $ $ 8,775 $ 261,287 I PLANT OPERATION & MAINTENANCE I Land $ 4,940 $ (1)$ $ $ 4,940 Building 517,983 517,983 Less: Allow. for Depr- I eciation (1) 12,950 (12,950) Lines 413,911 998,555 1,412,466 Less: Allow. for Depr- I eciation (221,132) 16,247 (237,379) Machinery & Equipment 40,997 92,047 25,412 107,632 Less: Allow. for Depr- I eciation (15,246 ) 6,456 2,874 (11,664) Construction Work In (1) Progress 950,174 566,364 1,516,538 I TOTAL PLANT OPERATION AND MAINTENANCE $1,173,644 $2,181,405 $1,541,950 $ 32,071 $1,781,028 I ALL ENTERPRISE FUNDS- TOTAL FIXED ASSETS H,;~~~,;~~¡ ~~,;~~~,;~~~ ~!22~!â2º $ 40 846 ~~~~~~,;~~~ ---------- ======~=== I I I The notes to the financial statements are an integral part of this statement. I -35- I I EXHIBIT F-1 I CITY OF ST. JOSEPH, MINNESOTA STATEMENT OF GENERAL FIXED ASSETS BY FUND I December 31, 1987 I GENERAL FIXED ASSETS I Land $ 49,879 Buildings 241,442 Improvements Other Than Buildings 7,684 I Machinery and Equipment 181,473 Office Furniture 28,356 Motor Vehicles 37,048 I Other Equipment 83,209 TOTAL GENERAL FIXED ASSETS ~~~~!~~~ I I INVESTMENT IN GENERAL FIXED ASSETS FROM: General Revenue Fund $383,344 I Special Assessments 59,013 Revenue Sharing 185,540 Capital Projects 1,194 I TOTAL INVESTMENT IN GENERAL FIXED ASSETS ~~~21.º2! -------- I I I I I I The notes to the financial statements are an integral part of this statement. I -36- - - - - ------ I I I I I I I I I I EXHIBIT G-1 CITY OF ST. JOSEPH, MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT December 31, 1987 AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE PAYMENT OF GENERAL LONG-TERM DEBT: BOND PRINCIPAL $ 770,645 1,519,000 Amount Available in Debt Service Fund Amount To Be Provided in Future Years TOTAL TO BE PROVIDED ~__7~~2~22 ---------- BONDS PAYABLE $ 277,000 1,242,000 Bonds Payable - Current Portion Bonds Payable - Noncurrent Portion I I I I I I I TOTAL BONDS PAYABLE ~!1.2!21.QQQ ---------- I I The notes to the financial statements are an integral part of this statement. -37- 1 I I I . - - - - - - - - - - - - - 1-3 ........ OJ ::J f-' 0 CD ---- Z tJl-3 1-3 f-' f-' f-' f-' f-' tJ :::s CD ::J 0 \0 \0 \0 \0 \0 C/) 0 0 0 çt" 0:> CO --..¡ --.J --.J çt" CD s::; PJ 0'0 W 0:> CO I\) 'l: CD 8()q f-' ;Þ ;Þ (J O"::J H H H::E: >-<: CD OJ a aC/)aPJ ;Þ çt" '1 çt" 0 '0 '0 çt" '0 çt" OJ 0 ::J :::s '1 '1 '1 '1 CD L' WCD 0. 0 0 CD 0 '1 1:':1 çt" f-' (J <: <: CD <: ::J PJ CD CD çt" CD PJ CD 0 :::s 'l: a a 8 :::s H¡:::S PJ CD CDHCD P. 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CD 110 00000 '0 0 110 00000 PJ H H¡ 110 00000 f-' :::s CD f-' PJ 1I-EfT -EfT \0 0 II H co ::J II :::s --.J 1If-' çt" ........ 110 --.J I\) CD ~ II--"¡ I\)Vlf-'O'\f-' '1 ---- II~ ~ ~ ~ ~ ~ CD 110'\ WW~Vl\O (J IIW ~ \0 0'\ f-' I\) çt" IIW Vll\) f-'Vl 0 CERTIFIED PUBLIC ACCOUNTANT ~r1i.. 1~ linttkmJ:.... (THE CONVENT) WATKINS, MINNESOTA 55389 TEL. (612) 764-5822 THE CITY OF ST. JOSEPH, MINNESOTA REPORT ON SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE Honorable City Mayor and Members of the City Council City of st. Joseph st. Joseph, Minnesota 56374 I have examined the general purpose financial statements of the City of st. Joseph, Minnesota, for the year ended December 31, 1987, and have issued my report thereon dated June 17, 1988. My examination of such general purpose financial statements was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office, and accordingly, included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. My examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial state- ments. The information in that schedule has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in my opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. Watkins, Minnesota ~/L¿~/- June 17, 1988 MARLIN J. BOECKMANN, C.P.A. -39- I ; I r - - - - - - - - - ........ ........ c:.:: e:: e:: '"'1 I\) f-' . . . CD ---- ---- (j) (j) (j) 0. ;Þ ::ö 1-3 0 . '"'1' (j) 1-3 . CD 0. CD '1 0 CD çt"'"'S '1 0. '0 CD :::s 1:':1 0. 1-3 CD CD 1:':1 PJ ~. '1 PJ (J :::s CD '1 '0 PJ :::s f-' çt" CD çt"çt" <: '1 CD çt" <: ~. (J a '1 ~. PJ PJ I\) a ~. 0 0 CD CD s::; '1 f-' (J ~ CD '1 '1 :::s :::s :::s 0 0 s::; :::s 0 PJ PJ çt" çt"çt" :::s ::ö '1 oçt" :::s :::s f-' (J ~. a CD '<: I\) a çt" ~o CD <: --.J~ CD 0 CD CD o :::s :::s CD f-'O :::s '1 ~ ~ '1 çt" :::s w'"'S çt" ........ '0 çt" :>;"'0 PJ s::; --.J:>;", PJ 'l: CD CD (J '1 f-' CD I\)(J f-' '1 :::s :::s PJ I 0 0. 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PJ <: CD ::ö ~ :::s 1If-' f-' '1 CD 0 S;Þ::s: 0 IIW W '<: :::s '1 O"ZH CD IIW W s::; CDI-3Z II-> ~ f-'CD........ '1 Z PJ IIW W ~ tJ W~~ çt" II-l::" -l::" PJ CD 11\0 \0 f-'çt"H¡ ~1-30 ~ ---- ---- \0 CD ~ HI-3 PJ ........ <X> '1 f-'¡:j;Þ :::s I\) --..¡ '1 s::; ---- CD \01-3 PJ 0. <X>>-<: '1 ---- --.J '<: f-' ~ 1I-EfT -EfT -EfT ::ö f-' II CD \0 II o ::ö <X> III\) I\) 0 CD --.J II <X> --.J f-' ()q <: . 110'0 ~ f-' f-' :::s CD II~ ~ ~ ~ ~. :::s 11\0 I\) I\) V1 N s::; 110'0 -l::" 0 0 CD CD 110 0'0 V1 \0 0. ........ ~ ---- 1:':1 -EfT ~ '0 CD 0'\ :::s V1 <X> 0. W W ~. ~ ~ çt" 0'\ --.J s::; 0 --..¡ '1 --.J -l::" CD (J ;Þ 0 tJ 0 CD '1 0 s::; -EfT CD ::öCD S CD 0. 0"<: ........ CD CD 0 0'\ '1 :::s '1 0 s::; ~ W CD ........ --.J f-' tJ co ~ PJ CD 0 0 çt"H¡ ---- f-' CD \0 '1 co '1 --.J CD 0. ---- . II. I ,W . U~L.I\.... . ,vvUUI-'¡ I A,-'¡ I -_~lin (J~ 1!illttt1wJ:JIW (THE CONVENT) WATKINS, MINNESOTA 55389 TEL. (612) 764-5822 AUDITOR'S REPORT ON COMPLIANCE WITH STATE LAWS orable City Mayor and Members Jf the City Council V of St. Joseph Joseph, Minnesota 56374 ive examined the general purpose financial statements of the City of Joseph, Minnesota, for the year ended December 31, 1987, and have led my report thereon dated June 17, 1988. My examination was made in )rdance with generally accepted auditing standards and the standards for <ncial and compliance audits contained in the provisions of the Legal Jliance Audit Guide promulgated by the Legal Compliance Task Force 'uant to Minnesota Statute, Section 6.65, and accordingly included such ,s of the accounting records and such other auditing procedures as I con- !red necessary in the circumstances. management of the City of st. Joseph is responsible for the City's com- nce with laws and regulations. In connection with my examination re- ed to above, I selected and tested transactions and records to determine City's compliance with laws and regulations noncompliance with which d have a material effect on the general purpose financial statements of City. ,-1innesota Legal Compliance Audit Guide For Local Governments covers five categories of compliance to be tested: contracting and bidding, de- ,s and investments, conflicts of interest, public indebtedness, and ns and disbursements. My study included all of the listed categories. 'esults of my tests indicate that for the items tested, the Cit y of Joseph, Minnesota, complied with the material terms and conditions of .pplicable legal provisions. Further, for the items not tested, based . examination and the procedures referred to above, nothing came to my 1tion to indicate that the City of st. Joseph had not complied with such provisions. report is intended solely for the use of management, the State of sota Office of the State Auditor, and applicable agencies which have ded Federal financial assistance grants and should not be used for any purpose. This restriction is not intended to limit the distribution is report, which is a matter of public record. 1S, Minnesota -;r~ð-~ 17, 1988 MARLIN J. BOECKMANN, C.P.A. -41- CERTIFIED PUBLIC ACCOUNTANT ~r1i.. 1~ 1&lItttkmJ:mt (THE CONVENT) WATKINS, MINNESOTA 55389 TEL. (612) 764-5822 AUDITOR'S REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable City Mayor and Members of the City Council City of St. Joseph St. Joseph, Minnesota 56374 I have examined the general purpose financial statements of the City of St. Joseph, Minnesota, for the year ended December 31, 1987, and have issued my report thereon dated June 17, 1988. My examination was made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in the Standards for Audits of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the City of St. Joseph, Minnesota, 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 re- cords from the major federal financial assistance program and the nonmajor federal financial assistance programs. The purpose of my testing of trans- actions and records from those federal financial assistance programs was to obtain reasonable assurance that the City of St. Joseph, Minnesota, had, in all material respects, administered the major program, and executed the tested nonmajor program transactions, in compliance with laws and regula- tions, 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 expenditures. My testing of transactions and records selected from the major federal finan- cial assistance program disclosed no instances of noncompliance with those laws and regulations. In my opinion, the City of st. Joseph, Minnesota, administered its major federal financial assistance program in compliance, in all material respects, with laws and regulations, 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 expenditures. The results of my testing of transactions and records selected from the non- major federal financial assistance program indicate that for the transactions -42- I I and records tested the City of st. Joseph, Minnesota, complied with the laws and regulations referred to in the second paragraph of my report. My I testing was more limited than would be necessary to express an opinion on whether the City of St. Joseph, Minnesota, administered those programs in compliance in all material respects with those laws and regulations non- compliance with which we believe could have a material effect on the allow- I ability 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 St. Joseph, Minnesota, had not complied with laws I and regulations. I ~£~--~ Watkins, Minnesota I June 17, 1988 MARLIN J. BOECKMANN, C.P.A. I I I I I I I I I I I I -43- I I CERTIFIED PUBLIC ACCOUNTANT ~r1i.. 1~ 1!illtttkmJ:.... (THE CONVENT) WATKINS. MINNESOTA 55389 I TEL. (612) 764-5822 AUDITOR'S COMBINED REPORT ON INTERNAL CONTROLS I (ACCOUNTING AND ADMINISTRATIVE) USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS BASED SOLELY ON A STUDY AND EVALUATION MADE AS A PART I OF AN EXAMINATION OF THE GENERAL PURPOSE OR BASIC FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT I Honorable City Mayor and Members of the City Council City of St. Joseph I St. Joseph, Minnesota 56374 I have examined the general purpose financial statements of the City of St. Joseph, Minnesota, for the year ended December 31,1987, and have I issued my report thereon dated June 17, 1988. 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 I financial assistance programs to the extent I considered necessary to eval- uate the systems as required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards I 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 Govern- ments. For the purpose of this report, I have classified the significant I internal accounting and administrative controls used in administering federal financial assistance programs in the following categories: I * Financing and Cash Management Activities * Revenue/Receipts Activities * Purchases/Disbursements Activities I * External Financial Reporting * Administrative Controls Over Major Federal Financial Assistance Programs I The management of the City of St. Joseph, Minnesota, is responsible for establishing and maintaining internal control systems used in administering federal financial assistance programs. In fulfilling that responsibility, I estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in administering federal financial assistance programs I are to provide management with reasonable, but not absolute, assurance that, with respect to federal financial assistance programs, resource use is consis- tent with laws, regulations, and policies; resources are safeguarded against waste, loss, and misuse; and reliable data are obtained, maintained, and I fairly disclosed in reports. Because of inherent limitations in any system of internal accounting and I administrative controls used in administering federal financial assistance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems to future periods is subject I -44- I I to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. I I I My study included all of the applicable control categories listed above. During the year ended December 31, 1987, the City of st. Joseph, Minnesota, expended 100% of its total federal financial assistance under the major federal financial assistance program. With respect to internal control systems used in administering major federal financial assistance 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 evalu- ating any weaknesses. I I With respect to the internal control systems used solely in administering the nonmajor federal financial assistance program of the City of St. Joseph, Minnesota, my study and evaluation was limited to a preliminary review of the systems to obtain an understanding of 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 program of the City of St. Joseph, Minnesota, did not extend beyond this preliminary review phase. I I I My study and evaluation was more limited than would be necessary to express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of st. Joseph, Minnesota. Accord- ingly, I do not express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of St. Joseph, Minnesota. Further, I do not express an opinion on the internal control systems used in administering the major federal financial assistance programs of the City of St. Joseph, Minnesota. I I 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 nonmajor federal financial assistance programs. I I However, my study and evaluation and my examination disclosed no condition that I believe to be a material weakness in relation to a federal financial assistance program of the City of st. Joseph, Minnesota. I This report is intended solely for the use of management and state and federal regulatory agencies and should not be used for any other purpose. This re- striction is not intended to limit the distribution of this report, which, upon acceptance by the City of St. Joseph, Minnesota, is a matter of public record. I I Watkins, Minnesota June 17, 1988 ~L:~~ MARLIN J. BOECKMANN, C.P.A. I -45- II