HomeMy WebLinkAbout1993 Audit Report1
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CITY OF ST. JOSEPH, MINNESOTA
Stearns County
AUDITED FINANCIAL STATEMENTS
As of
December 31, 1993
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' CITY OF ST. JOSEPH, MINNESOTA
TABLE OF CONTENTS
'
ELECTED OFF
.................
ICIALS AND ADMINISTRATION ................
3
INDEPENDENT AUDITORS' REPORT ......................................... 4
GENERAL PUR POSE FINANCIAL STATEMENTS -
Combined Balance Sheet - All Fund Types and Account Groups......... 5
' Combined Statement of Revenues, Expenditures and Changes in Fund
Balance - All Governmental Fund Types ........... ...... ...... ..
~ 6
Combined Statement of Revenues, Expenditures and Changes
in Fund
' Balance - Budget and Actual - General Fund ........................ 7
Combined Statement of Revenues, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types..... .... ..<. ..........
• 8
Combined Statement of Cash Flows - All Proprietary
Fund Types...... 9
Notes to the Financial Statements .................................. 10
' COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS -
General Fund -
Comparative Balance Sheets ....................................... 33
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual ............................................... 34
Special Revenue Fund -
Combining Balance Sheet .......................................... 40
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance .................................................... 41
Debt Service Funds - -
Combining Balance Sheet .......................................... 42
' Combining Statement of Revenues, Expenditures and Changes in Fund
Balance ......................................................... 43
Capital Projects Funds -
Combining Balance Sheet .......................................... 45
' Combining Statement of Revenues, Expenditures and Changes in Fund
Balance ......................................................... 46
Enterprise Funds -
' Combining Balance Sheet .......................................... 47
Combining Statement of Revenues, Expenses and Changes in Retained
Earnings ........................................................ 48
Combining Statement of Cash Flows ................................ 49
' Statement of General Long-Term Debt ................................ 50
' SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE ............................. 51
REPORT ON THE INTERNAL CONTROL STRUCTURE BASED ON AN AUDIT OF THE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
' AUDITING STANDARDS ... ............................................... 52
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN
' ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS ................. 54
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS
APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS ................. 58
' CITY OF ST. JOSEPH, MINNESOTA
TABLE OF CONTENTS
' (Continued)
' SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS
APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS............ 60
REPORT ON COMPLIANCE BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
AND MINNESOTA STATUTES ............................................... 62
' FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES ........................ 64
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Citv Council
Donald Reber
Stephanie Hazen
Bob Loso
Ross Rieke
Ken Hiemenz
Administration
Rachel Stapleton
Judy Weyrens
CITY OF ST. JOSEPH, MINNESOTA
ELECTED OFFICIALS AND ADMINISTRATION
December 31, 1993
Term
Position Expires
Mayor January, 1995
Councilmember January, 1995
Councilmember January, 1995
Councilmember January, 1997
Councilmember January, 1997
City Clerk/
Treasurer/
Administrator
Deputy Clerk
Appointed
Appointed
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' Alvin M. Kern
Duane N. DeWenter
Loren M. Viere
Kern, DeWenter, I/iere, ~~~. GKeith W. Judson
Dwayne B. Dockendorf
Certified Public Accountants David H. Hinnenkamp
INDEPENDENT AUDITORS' REPORT
March 10, 1994
Honorable Mayor and City Council
' City of St. Joseph
St. Joseph, Minnesota
We have audited the general purpose financial statements of the City of St.
Joseph, Minnesota as of and for the year ended December 31, 1993, as listed in the
table of contents. These financial statements are the responsibility of the
City's management. Our responsibility is to express an opinion on these financial
statements based on our audit.
' We conducted our audit in accordance with generally accepted auditing standards
and government auditing standards. Those standards require that we plan and per-
form the audit to obtain reasonable assurance about whether the financial state-
, ments 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 finan-
cial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the general purpose financial statements referred to above present
fairly, in all material respects, the financial position of the City of St.
Joseph, Minnesota, as of December 31, 1993, and the results of its operations and
cash flows of its proprietary fund type for the year then ended in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose
' financial statements taken as a whole. The combining and individual fund finan-
cial statements and schedule of federal financial assistance listed in the table
of contents are presented for purposes of additional analysis and are not a
required part of the general purpose financial statements of City of St. Joseph,
Minnesota. Such information has been subjected to the auditing procedures applied
in the audit of the general purpose financial statements and, in our opinion, is
fairly presented in all material respects in relation to the general purpose
financial statements taken as a whole.
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KERN, DEWENTER, VIERS, ITD.
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220 Park Avenue South P.O. Box 1304 St. Cloud, MN 56302
' 612-251-7010 fAX 612-251-1784
CITY OF ST. JOSEPH, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1993
Governmental Fund Types
Special Debt Capital
ASSETS AND OTHER DEBITS General Revenue Service Projects
ASSETS:
Cash and Investments (Including
Cash Equivalents) $ 1,312,100 $ 33,007 $ 954,019 $ 275,488
Taxes Receivable -
Delinquent 6,066 - - -
Special Assessments Receivable -
Deferred 57,068 - 611,135 -
Delinquent 262 - 1,023 -
Accounts Receivable 4,000 70,000 - -
Interest Receivable 13,224 - - -
Due from Other Funds - - - -
Due from Other Governmental Units 22,989 - - 302,860
Loans Receivable 7,220 - - -
Fixed Assets - Net - - - -
OTHER DEBITS:
Amount Available in Debt Service Funds - - - -
Amount to be Provided from Special
Assessments - - - -
Amount to be Provided for Compensated
Absences Payable - - - -
Amount to be Provided for Retirement
of General Long-Term Debt - - - -
TOTAL ASSETS AND OTHER DEBITS $ 1,422,929 $ 103,007 $ 1,566,177 $ 578,348
LIABILITIES, EQUITY ANO OTHER CREDITS
LIABILITIES:
Cash Overdraft $ - $ - $ - $ 243,927
Accounts Payable 40,425 - 265 17,750
Due to Other Governmental Units 14,620 - - -
Contracts Payable - - - 72,956
Due to Other Funds - - - -
Deferred Revenue 63,396 - 612,158 -
Compensated Absences Payable 28,255 - - -
Capital Lease Obligation - - - -
Bonds Payable - - - -
Total Liabilities 146,696 - 612,423 334,633
EQUITY AND OTHER CREDITS:
Investment in General Fixed Assets - - - -
Contributed Capital - - - -
Retained Earnings {Deficit) - - - -
Fund Balance -
Reserved 339,574 - - -
Unreserved -
Designated 787,972 - 953,754 243,715
Undesignated (Deficit) 148,687 103,007 - -
Total Equity and Other Credits 1,276,233 103,007 953,754 243,715
TOTAL LIABILITIES, EQUITY
AND OTHER CREDITS $ 1,422,929 $ 103,007 $ 1,566,177 $ 578,348
The notes to the financial statements are an integral part of this statement. '
Proprietary
Fund Types Account Groups
General General Totals
Fixed Long-Term (Memorandum Only)
Enterprise Assets Debt 1993 1992
$ 401,858 $ - $ - $ 2,976,472 $ 3,108,497
- - - 6,066 4,275
- - - 668,203 298,385
1,285 644
64,544 - - 138,544 59,281
- - - 13,224 55,909
- - - - 20,000
- - - 325,849 15,716
- - - 7,220 7,220
3,543,746 1,050,163 - 4,593,909 2,832,537
- - 953,754 953,754 1,200,610
- - 612,158 612,158 252,228
- - 31,665 31,665 18,492
- - 557,681 557,681 194,037
$ 4,010,148 $ 1,050,163 $ 2,155,258 $ 10,886,030 $ 8,067,831
$ - $ - $ - $ 243,927 $ 109,279
10,545 - - 68,985 104,496
6,757 - - 21,377 5,848
- - - 72,956 38,503
- - - - 20,000
- - - 675,554 303,304
12,131 - 31,665 72,051 56,447
- - 13,593 13,593 21,875
- - 2,110,000 2,110,000 1,625,000
29,433 - 2,155,258 3,278,443 2,284,752
- 1,050,163 - 1,050,163 999,560
4,075,441 - - 4,075,441 2,299,315
(94,726) - - (94,726) (118,945)
- - - 339,574 302,700
- - - 1,985,441 1,824,192
- - - 251,694 476,257
3,980,715 1,050,163 - 7,607,587 5,783,079
$ 4,010,148 $ 1,050,163 $ 2,155,258 $ 10,88fi,030 $ 8,067,831
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CITY OF ST. JOSEPH, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
Year Ended December 31, 1993
Governmental Fund Types
Special Debt
General Revenue Service
REVENUES:
Taxes $ 150,024 $ - $ -
Special Assessments 23,215 - 69,114
Licenses and Permits 40,223 - -
Intergovernmental 466,154 - -
Charges for Services 109,725 - -
Fines 39,559 - -
Miscellaneous 35,745 2,076 146,246
Total Revenues 864,645 2,076 215,360
EXPENDITURES:
Current -
General Government 195,183 - -
Public Safety 382,640 2,115 -
Public Works 174,410 - -
Culture and Recreation 61,470 - -
Miscellaneous 2,567 - -
Capital Outlay - - -
Debt Service - - 173,202
7ota1 Expenditures 8~ 2,115 173,202
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 48,375 (39) 42,158
OTHER FINANCING SOURCES (USES):
Operating Transfers In - 79,057 110,500
Operating Transfers Out (297,130) (11,927) -
Proceeds From the Saie of Bonds - - 15,990
Total Other Financing Sources (Uses) 297,130) 67,130 126,490
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER USES (248,755) 67,091 168,648
FUND BALANCE - January 1 1,270,943 35,916 1,200,610
RESIDUAL EQUITY TRANSFER 254,045 - 415,504)
FUND BALANCE - December 31 $ 1,276,233 $ 103,007 $ 953,754
The notes to the financial statements are an integral part of this statement.
Totals
Capital (Memorandum Only)
Projects 1993 1992
$ - $ 150,024 $ 117,224
162,327 254,656 142,222
- 40,223 33,436
870,019 1,336,173 481,852
- 109,725 105,679
- 39,559 33,689
14,028 198,095 278,319
1,046,374 2,128,455 1,192,421
- 195,183 191,113
- 384,755 368,961
- 174,410 165,113
- 61,470 74,529
- 2,567 53,373
1,722,072 1,722,072 908,807
173,202 291,071
1,722,072 2,713,659 2,052,967
(675,698) (585,204) (860,546)
200,000 389,557 -
- (309,057) -
524,438 540,428 1,018,225
724,438 620,928 1,018,225
48,740 35,724 157,679
95,680 2,603,149 2,445,470
99,295 62,164) -
$ 243,715 $ 2,576,709 $ 2,603,149
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CITY OF ST. JOSEPH, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
Year Ended December 31, 1993
REVENUES:
Taxes
Special Assessments
Licenses and Permits
Intergovernmental
Charges for Services
Fines
Miscellaneous
Total Revenues
EXPENDITURES:
Current -
General Government
Public Safety
Public Works
Culture and Recreation
Miscellaneous
Total Expenditures
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING USES:
Operating Transfers Out
EXCESS OF REVENUES (UNDER)
EXPENDITURES AND OTHER FINANCING
USES
FUND BALANCE - January 1, 1993
RESIDUAL EQUITY TRANSFER
FUND BALANCE - December 31, 1993
General Fund
Over
(Under)
Budget Actual Budget
$ 246,000 $ 150,024 $ (95,976)
4,000 23,215 19,215
27,000 40,223 13,223`
367,788 466,154 98,366
99,850 109,725 9,875
29,100 39,559 10,459
44,200 35,745 8,455)
817,938 864,645 46,707
183,799 195,183 11,384
389,854 382,640 (7,214)
245,404 174,410 (70,994)
90,630 61,470 (29,160)
1,000 2,567 1,567
910,687 816,270 94,417)
(92,749) 48,375 141,124
- 297,130) (297,130)
$ 92,749) (248,755) $(156,006)
1,270,943
254,045
$ 1,276,233
The notes to the financial statements are an integral part of this statement.
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CITY OF ST. JOSEPH, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS - ENTERPRISE FUNDS
Year Ended December 31, 1993
With Comparative Totals for the Year Ended December 31, 1992
OPERATING REVENUES:
Charges for Services
OPERATING EXPENSES:
Salaries and Related Taxes and Benefits
Utilities
Supplies
Sewer Use Rental
Postage
Repairs and Maintenance
Fees and Tests
Dues and Subscriptions
Refuse Disposal
Depreciation
Insurance
Miscellaneous
Total Operating Expenses
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES):
Interest
Loss on Disposal of Fixed Asset
Total Non-Operating Revenues (Expenses)
INCOME BEFORE OPERATING TRANSFERS
' Operating Transfers Out
NET INCOME (LOSS)
' RETAINED EARNINGS (DEFICIT) - January 1
RESIDUAL EQUITY TRANSFER
' RETAINED EARNINGS (DEFICIT) - December 31
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Totals
1993 1992
$ 382,283 $ 346,051
83,153 75,041-
19,520 17,571
14,589 18,281
63,068 52,354
1,049 1,006
11,277 57,338
10,254 4,694
238 238
67,732 64,358
69,968 69,205
8,628 -
210 688
349,686 360,774
32,597 (14,723)
9,958 20,481
- 653)
9,958 19,828
42,555 5,105
80,500) -
(37,945) 5,105
(118,945) (124,050)
62,164 -
$ 94,726) $(118,945)
The notes to the financial statements are an integral part of this statement.
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CITY OF ST. JOSEPH, MINNESOTA
ENTERPRISE FUNDS
COMBINED STATEMENT OF CASH FLOWS
Year Ended December 31, 1993
With Comparative Totals for the Year Ended December 31, 1992
Totals
1993 1992
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income (Loss) $ 32,597 $ (14,723)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by Operating Activities:
Depreciation 69,968 69,205
Change in Assets and Liabilities:
(Increase) in Accounts Receivable (5,263) (9,546)
Decrease in Interest Receivable - 3,341
Decrease in Special Assessments Receivable - 328
Decrease in Due from Other Governmental Units - 1,660
Increase (Decrease) in Accounts Payable (20,084) 11,442
Increase in Due to Other Governmental Units 994 5,763
(Decrease) in Due to Other Funds (20,000) -
(Decrease) in Deferred Revenue - (2,818)
Increase in Compensated Absences Payable 2,431 3,339
Total Adjustments 28,046 82,714
Net Cash Provided by Operating Activities 60,643 67,991
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Transfers to Other Funds (80,500) -
Residual Equity Transfers 62,164 -
Net Cash Used by Noncapital Financing Activities 18,336) -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Capital Expenditures (4,611) (4,890)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments 9,958 20,481
Net Increase in Cash and Cash Equivalents 47,654 83,582
Cash and Cash Equivalents, January 1 354,204 270,622
Cash and Cash Equivalents, December 31 $ 401,858 $ 354,204
The notes to the financial statements are an integral part of this statement.
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CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
' December 31, 1993
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of St. Joseph, Minnesota, has a mayor-council form of government. A
mayor and four council members are elected by the voters of the City for two-year
and four-year terms, respectively.
The accounting policies of the City of St. Joseph conform to generally accepted
accounting principles.
A. Financial Reporting Entity
' As required by generally accepted accounting principles, these financial
statements present the City of St. Joseph, the primary government. The City
has no component units.
B. 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 expenses, 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 expending activities are
' controlled. The various funds are grouped, in the financial statements in
this report, into five generic fund types and two broad fund categories,
described below.
Governmental Funds
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 are used to account for the proceeds of specific
revenue sources other than expendable trusts or major capital projects)
that are legally restricted to expenditures for specified purposes. The
City has three Special Revenue Funds.
Debt Service Funds are used to account for the accumulation of resources
for, and the payment of, general long-term debt principal, interest, and
related costs. The City has five Debt Service Funds.
Capital Projects Funds are used to account for financial resources to be
' used for the acquisition or construction of major capital facilities (other
than those financed by enterprise funds). The City has four Capital
Projects Funds.
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CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
' December 31, 1993
(Continued)
' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Fund Accounting (Continued)
' Proprietary Funds
' Enterprise Funds are used to account for operations (a) that are financed
and operated in a manner similar to private business enterprises--where the
intent of the governing body is that the costs (expenses, including
' depreciation) of providing goods or services to the general public on a -
continuing basis be financed or recovered through user charges; or (b)
where the governing body has decided that periodic determination of reve
Hues earned, expenses incurred, or net income is appropriate for capital
maintenance, public policy, management control, accountability, or other
purposes. The City maintains Refuse, Water and Sewer Enterprise Funds.
' C. Fixed Assets and Long-Term Liabilities
The accounting and reporting treatment applied to the fixed assets and long-
term liabilities associated with a fund are determined by its measurement
' focus. All governmental funds are accounted for on a spending or "financial
flow" measurement focus. This means that only current assets and current lia-
bilities are generally included on their balance sheets. Their reported fund
' balance (net current assets) is considered a measure of "available spendable
resources." Governmental fund operating statements present increases
(revenues and other financing sources) and decreases (expenditures and other
financing uses) in net current assets. Accordingly, they are said to present
a summary of sources and uses of available spendable resources during.a
period.
Fixed assets used in governmental fund type operations (general fixed assets)
are accounted for in the General Fixed Assets Account Group, rather than in
governmental funds. Public domain ("infrastructure") general fixed assets
' consisting of certain improvements other than bui]dings, including roads,
curbs and gutters, streets and sidewalks, are not capitalized by the City. No
depreciation has been provided on general fixed assets.
All fixed assets are valued at their historical cost or estimated historical
cost if actual historical"cost is not available. Donated fixed assets are
valued at their estimated fair value on the date donated.
' Long-term liabilities
accounted for in the
governmental funds.
expected to be financed from governmental funds are
General Long-Term Debt Account Group, not in the
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CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTLNG POLICIES (Continued)
C. Fixed Assets and Long-Term Liabilities (Continued)
The two account groups are not ufunds". They are concerned only with the
measurement of financial position. They are not involved with measurement of
results of operations.
Because of their spending measurement focus, expenditure recognition for
governmental fund types is limited to exclude amounts represented by non-
current liabilities. Since they do not affect net current assets, such long-
term amounts are not recognized as governmental fund type expenditures or fund
liabilities. They are instead reported as liabilities in the General
Long-Term Debt Account Group.
Al] proprietary funds are accounted for on a flow of economic resources meas-
urement focus. This means that all assets and all liabilities (whether cur-
rent or non-current) associated with the funds' activity are included on their
balance sheets. Proprietary fund type operating statements present increases
(revenues) and decreases (expenses) in net total assets.
Depreciation of all exhaustible fixed assets used by proprietary funds is
charged as an expense against their operations. Accumulated depreciation is
reported on proprietary fund balance sheets. Depreciation has been provided
over the assets' estimated useful lives, which range from five to fifty years,
using the straight-line method.
D. Basis of Accounting
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 measurement made, regardless of the
measurement focus applied.
All governmental funds are accounted for using the modified accrual basis of
accounting, in which revenues are recognized when they become measurable and
available as net current assets.
The more significant revenues which have been accrued are intergovernmental
revenues and interest earnings.
Expenditures are generally recognized in the modified accrual basis of
accounting when the related fund liability is incurred. Exceptions to this
general rule include sick pay and principal and interest on general long-term
debt, which are recognized when due.
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' CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued}
' D. Basis of Accounting (Continued}
All proprietary funds are accounted for using the accrual basis of accounting;
revenues are recognized when they are earned and expenses are recognized when
' they are incurred.
E. Budgetary Data
' The City Council adopts an annual budget. The amounts shown in the financial
statements as "budget" represent the original budgeted amount and all
revisions made during the year. The City follows these procedures in estab-
' lishing the budgetary data reflected in the financial statements.
1. In August of each year, the City Administrator submits to the City Council
' a proposed operating budget for the fiscal year commencing the following
January 1. The operating budget includes proposed expenditures and the
means of financing them for the upcoming year.
' 2. Public hearings are conducted to obtain taxpayer comment.
3. Prior to December 31, the budget is legally enacted through passage of a
' resolution.
4. Formal budgetary integration is employed as a management control device
' during the year for the General and Special Revenue Funds. Formal budget
ary integration is not employed for Debt Service Funds because effective
budgetary control is alternatively achieved through general obligation
bond indenture provisions. Budgetary control for Capital Projects Funds
' is accomplished through the use of project controls.
5. The Budgets for the General and Special Revenue Funds are adopted on a
basis consistent with generally accepted accounting principles (GAAP).
F. Encumbrances
Encumbrances represent outstanding purchase orders and unfulfilled commitments
that are issued to outside vendors and budgeted in the current year but do not
include amounts that are set up as liabilities, amounts for personal services
' to be performed by City employees and purchase orders applicable to the
subsequent year's budget.
As of December 31, 1993, no outstanding encumbrances existed.
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CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Cash and Investments (Including Cash Equivalents) (See Note 3)
Cash balances from all funds are combined and invested to the extent available
in authorized investments. Earnings from such investments are allocated to
the respective funds on the basis of applicable cash balance participation by
each fund.
Investments are carried at cost which approximates market. Any premiums or
discounts are amortized over the maturity of the investment.
For purposes of the Statement of Cash Flows of proprietary fund types, cash
equivalents are defined as short-term, highly liquid investments that are
both:
a. readily convertible to known amounts of cash, or
b. so near their maturity that they present insignificant risk of
changes in value because of changes in interest rates.
The City's policy considers cash equivalents to be those that meet the above
criteria and have original maturities of three months or less.
H. Taxes Receivable
Delinquent taxes receivable represent the past six years of uncollected tax
levies.
I. Special Assessments Receivable
Delinquent special assessments represent the past six years of uncollected
special assessments.
Deferred special assessments are those assessments to property owners for
improvements made by the City. These assessments are made at various times by
City resolution and are collectible over periods ranging from ten to thirty
years and bear annual interest of 8 percent to 11.5 percent and are to be
received in 1994 and years thereafter.
Deferred special assessments represent the principal portion of those
assessments to property owners for improvements made by the City and are to
be paid in 1994 and years thereafter.
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CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. Deferred Revenue
Deferred revenue represents delinquent taxes and deferred and delinquent
assessments receivable. -This revenue is deferred until it is measurable and
available as net current assets.
K. Compensated Absences
The City compensates employees who leave City service in good standing for all
earned, unused vacation. In addition, employees are compensated for unused
sick leave (up to a maximum of 90 days) at 50% of the current regular rate of
pay, provided the City's notice of termination policy has been complied with.
L. Fund Equity
Fund equity is divided into sections as follows:
- Contributed capital represents fixed assets purchased by other
funds and contributed to the enterprise funds.
- Investment in General fixed Assets represents the City's equity in
general fixed assets.
- Retained earnings of enterprise funds are subdivided as follows:
The reserved account represents the portion of retained earnings set
aside for specific purposes.
Unreserved retained earnings is available for expending in future
periods.
- Fund balance accounts are subdivided as follows:
Reserved accounts indicate the portion of fund balance which has been
reserved for a specific purpose.
Unreserved, designated accounts indicate the portion of fund balance
which has been designated for a specific purpose.
The unreserved, undesignated account is the portion of fund balance which
is available for budgeting and expending in future periods.
15
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CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. Revenues, Expenditures and Expenses
1. Revenues
Property taxes and special assessment principal and interest are recog-
nized as revenue when measurable and available. Portions of taxes paid by
the State in the form of HACA and other tax credits are included in inter-
governmental revenue.
Intergovernmental revenues are reported under the legal and contractual
requirements of the individual programs.
Licenses and permits, charges for services, fines and forfeits, and
miscellaneous revenues (except investment earnings) are recorded as
revenues when received in cash because they are generally not measurable
until then. Investment earnings are recorded when earned because they are
measurable and available.
2. Property Tax Collection Calendar
The City levies its property tax for the subsequent year during the month
of December. The property tax is recorded as revenue when it becomes
measurable and available. Stearns County is the collecting agency for
the levy and remits the collections to the City three times a year. Taxes
not collected as of December 31 each year are shown as delinquent taxes
receivable.
December 28 is the last day the City can certify a tax levy to the County
Auditor for collection the following year.
The County Auditor makes up the tax list for all taxable property in the
City, applying the applicable tax rate to tfie tax capacity of individual
properties, to arrive at the actual tax for each property. The County
Auditor also collects all special assessments, except for certain
prepayments paid directly to the City.
The County Auditor turns aver a list of taxes and special assessments to
be collected on each parcel of property to the County Treasurer in January
of each year.
The County Treasurer collects all taxes, and all special assessments,
except as noted above. The County Treasurer is required to mail copies of
all personal property tax statements by April 15, and copies of all
real estate tax statements by April 15, of each year.
16
u
' CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
' December 31, 1993
(Continued)
' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. Revenues, Expenditures and Expenses (Continued)
' 2. Property Tax Collection Calendar (Continued)
' Property owners are required to pay one-half of their real estate taxes
due by May 15 and the balance by October 15.
If taxes due May 15 are not paid on time:, a penalty of 3% is assessed on
homesteaded property, and 7°~ on non-homesteaded property. An additional
1% penalty is added each month the taxes remain unpaid, until October 15.
If the taxes due May 15 are not paid by October 15, a 2% penalty per month
' is added to homesteaded property and 4% per month to non-homesteaded prop-
erty until January 1.
If the taxes are not paid by January 1, further penalties are added.
Penalties and interest apply to both taxes and special assessments. There
are some exceptions to the above penalties, but they are not material.
Within 30 days after the tax settlement date, the County Treasurer is
required to pay 70~ of the estimated collections of taxes and special
assessments to the City Treasurer. The County Treasurer must pay the
balance to the City Treasurer within 60 days after settlement, provided
' that after 45 days interest accrues at the rate of 8% per annum.
3. Expenditures
Expenditure recognition for governmental fund types includes only amounts
represented by current liabilities. Since noncurrent liabilities do not
' affect net current assets, they are not recognized as governmental fund
expenditures or fund liabilities. They are reported as liabilities in the
General Long-Term Debt Account Group.
' 4. Expenses
Enterprise funds recognize expenses when they are incurred.
' N. Interfund Transactions
Quasi-external transactions are accounted for as revenues, expenditures or
' expenses. Transactions that constitute reimbursements to a fund for expendi-
tures or expenses initially made from it that are properly applicable to
another fund are recorded as expenditures or expenses in the fund that is
reimbursed.
All other Interfund transactions, except quasi-external and reimbursements,
' are reported as transfers. Nonrecurring or nonroutine permanent transfers of
equity are reported as residual equity transfers. All other Interfund trans-
fers are reported as operating transfers.
17
' CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
' December 31, 1993
(Continued)
' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
0. Total Columns on General Purpose Statements
Total columns on the general purpose financial 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 cash flows in conformity with generally accepted
accounting principles. Interfund eliminations have not been made in the
aggregation of these data.
P. Comparative Data
Comparative total data for the prior year have been presented in the accompa-
nying financial statements in order to provide an understanding of changes in
the City's financial position and operations. However, prior year totals by
fund type have not been presented in each of the statements since their inclu-
sion would make the statements unduly complex and difficult to read.
Comparative data have been restated to reflect reclassifications.
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
' A. Fund Deficits
The following fund has deficit retained earnings at December 31, 1993:
Enterprise Fund -
Sewer $ 282,975
' The deficit of this fund will be eliminated by transfers from other funds and
future user charges.
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
' A. Assets
1. Cash and Investments (Including Cash Equivalents)
' Cash balances of the City's funds are combined (pooled) and invested to
the extent available in various investments authorized by Minnesota State
Statutes. Each fund's portion of this pool (or pools) is displayed on the
financial statements as "cash and investments (including cash
equivalents)." For purposes of identifying risk of investing public funds,
the balances and related restrictions are summarized below:
' 18
' CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
' December 31, 1993
(Continued)
' NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
A. Assets (Continued)
1. Cash and Investments (Including Cash Equivalents} (Continued)
a. Deposits - Minnesota Statutes require that all deposits with financial
institutions must be collateralized in an amount equal to 110% of
deposits in excess of FDIC insurance (140% if collateralized with
notes secured by first mortgages).
' Category 1 - Deposits covered by Federal Depository Insurance (FDIC)
and those deposits collateralized with securities held
' by the City or by its agent in the City's name.
Category Bank Carrying
1 2 3 Balance Amount.
Bank Accounts $ 528,631 $ - $ - $ 528,631 $ 520,042
Certificates of
Deposit 850,517 = = 850,517 850,517
Total Deposits $ 1,379,148 $ ~ $ _ $ 1,379,148 $ 1,370,559
b. Investments - Minnesota State Statutes authorize the City to invest in
obligations of the U.S. Treasury, agencies, and instrumentalities,
shares of investment companies whose only investments are in the
forementioned securities, obligations of the State of Minnesota or its
municipalities, bankers' acceptances, future contracts, repurchase and
reverse repurchase agreements, and commercial paper of the highest
quality with a maturity of no longer than 270 days. Investments held
by the City at year end classified as to credit risk are as follows:
Category 1 - Insured or registered, or securities held by
the City's agent in the City's name.
' Category 2 - Uninsured and unregistered, with securities
held by the counterparty's trust department
or agent in the City's name.
Category 3 - Uninsured and unregistered, with securities held
by the counterparty or by its trust department
or agent but not in the City's name.
19
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
' December 31, 1993
(Continued)
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NOTE 3 - DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. Assets
1. Cash and Investments (Including Cash Equivalents) (Continued)
b. Investments (Continued)
U.S. Government and
Federal Agency Notes
and Bonds
U.S. Treasury Bills
Negotiable Certificates
of Deposit
Mutual Funds
Total Investments
Total Deposits (See
Note 3 A.l.a.)
Petty Cash
Not Subject to Risk
Classification:
Open End Mutual Funds
Total Cash and
Investments
(Including Cash
Equivalents)
Category Carrying Market
1 2 3 Amount Value
$ 448,179 $ - $ -
60,782 - -
593,656 - -
250,161 - -
$ 1,352,778 $ - $ -
$ 448,179 $ 448,179
60,782 60,782
593,656 593,656
250,161 250,161
1,352,778 1,352,778
1,370,559 1,370,559
220 220
8,988 8,988
$ 2,732,545 $ 2,732,545
The carrying amount is classified on the combined balance sheet as
follows:
Carrying
Amount
Cash and Investments (Including Cash
Equivalents) $ 2,976,472
Cash Overdraft 243,927
Total $ 2,732,545
20
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CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 3 - DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
' A. Assets (Continued)
2. Due from Other Governmental Units
n
n
n
The following is a summary of due from other governmental units at
December 31, 1993:
Stearns County
General Fund - Fines and Property Taxes $ 22,989
West Minnesota Street Capital Projects
Fund - County Share 302,860
Total $ 325,849
3. Fixed Assets
A summary of changes in general fixed assets follows:
Balance
1-1-93 Additions Disposals
Land $ 79,837 $ - $ -
Buildings 252,350 835 -
Improvements Other
than Buildings 68,559 9,856 -
Machinery and
Equipment 343,284 10,211 -
Office Furniture 41,158 5,819 2,070
Motor Vehicles 69,123 19,121 -
Other Equipment 145,249 6,831 -
Total $ 999,560 $ 52,673 $ 2,070
Balance
12-31-93
$ 79,837
253,185
78,415
353,495
44,907
88,244
152,080
$ 1,050,163
A summary of Enterprise Fund fixed assets at December 31, 1993, is as
follows:
Water
Land and Land Improvements
Treatment Plant and Lines
Buildings
Machinery and Equipment
Construction in Progress
Total Cost
Less: Accumulated Depreciation
Net Fixed Assets
$ 12,996
488,344
34,969
1,321,592
1,857,901
194,433)
$ 1,663,468
Sewer
Fund
$ 4,940
1,391,599
517,983
116,234
457,148
2,487,904
607,626)
$ 1,880,278
Total
$ 17,936
1,879,943
517,983
151,203
1,778,740
4,345,805
802,059)
$ 3,543,746
21
CITY OF ST. JOSEPH, MINNESOTA
' NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
' NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
' B. Liabilities -
1. Defined Benefit Pension Plans Statewide
' a. Plan Description
All full-time and certain part-time employees of the City of St.
Joseph are covered by defined benefit pension plans administered by
' the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (PERF) and the Public
Employees Police and Fire Fund;(PEPFF) which are cost-sharing
multiple-employer retirement plans. PERF members belong to either the
Coordinated Plan or the Basic Plan. Coordinated members are covered
by Social Security and Basic members are not. All new members must
participate in the Coordinated Plan. All police officers,
' firefighters and peace officers who qualify for membership by statute
are covered by the PEPFF. The payroll for employees covered by PERF
and PEPFF for the year ended December 31, 1993 was $ 180,225 and
' $ 147,743, respectively; the City's total payroll was $ 425,752.
PERA provides retirement benefits as well as disability benefits to
members, and benefits to survivors upon death of eligible members.
' Benefits are established by State Statute, and vest after three years
of credited service. The defined retirement benefits are based on a
member's average salary for any five successive years of allowable
service, age, and years of credit at termination of service. Two
methods are used to compute benefits for Coordinated and Basic
members. The retiring member receives the higher of step-rate benefit
' accrual formula (Method 1) or a level accrual formula (Method,2).
Under Method 1, the annuity accrual rate fora Basic member is 2 per-
cent of average salary for each of the first 10 years of service and
2.5 percent for each remaining year. For a Coordinated member, the
' annuity accrual rate is 1 percent of average salary for each of the
first 10 years and 1.5 percent for each remaining year. Using Method
2, the annuity accrual rate is 2.5 percent of average salary for Basic
members and 1.5 percent for Coordinated members. For PEPFF members,
the annuity accrual rate is 2.5 percent for each year of service.
(Effective July 1, 1993, the annual accrual rate for PEPFF is 2.65
percent.) For PERF members whose annuity is calculated using Method
' 1, and for all PEPFF members, a full annuity is available when age
plus years of service equal 90.
There are different types of annuities available to members upon
retirement. A normal annuity is a lifetime annuity that ceases upon
the death of the retiree. No survivor annuity is payable. There are
' also various types of joint and survivor annuity options available
which will reduce the monthly normal annuity amount, because the annu-
ity is payable over joint lives. Members may also leave their contri-
butions in the fund upon termination of public service, in order to
qualify fora deferred annuity at retirement age. Refunds of contri-
butions are available at any time to members who leave public service,
but before retirement benefits begin.
22
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CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
b. Contributions Required and Contributions Made
Minnesota Statutes Chapter 353 sets the rates for employer and
employee contributions. The City makes annual contributions to the
pension plans equal to the amount required by State statutes.
According to Minnesota Statutes Chapter 356.215, Subd. 4(g), the date
of full funding required for the PERF and PEPFF is the year 2020. As
part of the annual actuarial valuation, PERA's actuary determines the
sufficiency of the statutory contribution rates towards meeting the
required full funding deadline. The actuary compares the actual
contribution rate to a "required" contribution rate. Current combined
statutory contribution rates and actuarially required contribution
rates for the plans are as follows:
Statutory Rates Required
Employees Employer Rates*
PERF (Basic and
Coordinated) 4.39 4.67 9.95
PEPFF 8.00 12.00 18.60
* The recommended rates scheduled above represent the required
rates for fiscal year 1993 contributions as reported in the.
July 1, 1992, actuarial valuation reports.
Total contributions made by the City during fiscal year 1993 were:
Amounts
Employees Em to er
PERF $ 7,623 $ 8,074
PEPFF 11,820 17,729
Totals $ 19,443 $ 25,803
Percentage of
Covered Payroll
Employees Employer
4.23 4.4816
8.00 12.00
The City's contribution for the year ended December 31, 1993 to the
PERF represented .007 percent of total contributions required of all
participating entities. For the PEPFF, contributions for the year
ended December 31, 1993, represented .058 percent of total contribu-
tions required of all participating entities.
23
' CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
' December 31, 1993
(Continued)
' NOTE 3 - DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
c. Funding Status and Progress
1. Pension Benefit Obligation
' The "pension benefit obligation" is a standardized disclosure
measure of the present value of pension benefits, adjusted for the
effects of projected salary increases and step-rate benefits,
t estimated to be payable in the future as a result of employee
service to date. The measure, which is the actuarial present
value of credited projected benefits, is intended to help users
assess PERA's funding status on a going-concern basis, assess
progress made in accumulating sufficient assets to pay benefits
when due, and make comparisons among Public Employees Retirement
Systems and among employers. PERA does not make separate
measurements of assets and pension benefit obligation for
individual employers.
The pension benefit obligations as of June 30, 1993, are shown
below:
(In Thousands)
' PERF PEPFF
Total Pension Benefit Obligation $ 5,163,766 $ 932,333
' Net Assets Available for Benefits,
at Cost (Market Values for PERF =
$ 4,515,052; PEPFF = $ 1,173,312) 4,304,163 1,090,857
' Unfunded (Assets in Excess of) Pension
Benefit Obligation $ 859,603 $ 158,524)
' The measurement of the pension benefit obligation is based on an
actuarial valuation as of June 30, 1993. Net assets available to
' pay pension benefits were valued as of June 30, 1993.
24
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 3 --DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
1. Defined Benefit Pension Plans - Statewide (Continued)
c. Funding Status and Progress (Continued)
2. Changes in Benefit Provisions
Three bills enacted during the 1993 legislative session improved
benefits for many members without a material effect on the pension
benefit obligation in the PERF or the PEPFF. The early retirement
incentive bill permitted a public employer to offer PERA's Basic
and Coordinated members an increase of one-fourth percent (.25°~)
in the formula multiplier for each year of service, up to the
first 30 years, or health insurance coverage to age 65. Also, the
survivor protection bill provided benefits to either a surviving
spouse or children of PERF Coordinated Plan members who die before
age 50. Lastly, the Police and Fire benefit increase bill, which
became effective July 1, 1993, permanently increased the PEPFF
formula multiplier from 2.5 percent to 2.65 percent of an
individual's average salary over the five highest consecutive
years of earnings.
d. Ten-Year Historical Trend Information
Ten-year historical trend information is presented in PERA's Component
Unit Financial Report for the year ended June 30, 1993. This~informa-
tion is useful in assessing the pension plan's accumulation of suffi-
cient assets to pay pension benefits as they become due.
e. Related Party Investments
As of June 30, 1993, and for the fiscal year then ended, PERA held no
securities issued by the City or other related parties.
2. Defined Contribution Lump Sum Service Pension Plan - Volunteer Fire
Relief Association
a. Plan Description
The City contributes to the St. Joseph Fire Department Relief
Association ("Association"), a single-employer public employee retire-
ment system that acts as a common investment and administrator for the
City's firefighters.
25
1
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
' December 31, 1993
(Continued)
NOTE 3 - DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
2. Defined Contribution Lum Sum Service Pension Plan - Volunteer Fire
Relief Association Continued
a. Plan Description (Continued)
Volunteer firefighters of the City are members of the St. Joseph Fire
Department Relief Association. Members are eligible for service
pensions and disability pensions at a pro-rate amount after 20 years
of service and after arriving at age 50. Pension benefits are
' determined by multiplying the accrued liability, as set forth in
Minnesota Statute 69.772, Subdivision 2, by the ratio of the lump sum
service pension amount provided in the bylaws of the Association to a
service pension of $ 100 per year of service. As of December 31,
1992, the bylaws provided an amount of $ 950 per year of service. The
bylaws do not provide for early vesting.
' These benefit provisions and all other requirements are consistent
with enabling state statutes.
The City levies property taxes at the discretion of and for the
benefit of the fire relief association and passes through state aids
allocated to the plan, all in accordance with enabling state statutes.
' b. Related Party Investments
During 1992 and as of December 31, 1992, the association held no
' securities issued by the City or other related parties.
c. Funding Status and Progress
' The amount shown below as the "pension benefit obligation" is computed
in accordance with Minnesota Statutes using the formula as explained
above.
Pension Benefit Obligation $ 371,768
Net Assets Available for Benefits at Market 325,266
Unfunded Pension Benefit Obligation $ 46,502
' As of the issuance of this report, amounts for December 31, 1993,
were not available.
26
0
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 3 - DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
Z. Defined Contribution Lum Sum Service Pension Plan - Volunteer Fire
Relief Association Continued
d. Contributions Required and Contributions Made
Financial requirements of the relief association are determined in
accordance with Minnesota Statutes as follows:
Normal Cost for Next Year (Increase in Pension Benefit
Obligation)
Plus: Estimated Expenses for Next Year and
10% of Any Deficits
Less: Anticipated Income Next Year and
10% of Any Surplus
Total contributions to the association in 1992 were $ 6,536.
3. Defined Contribution - Statewide
The City provides pension benefits for its elected local government offi-
cials through a defined contribution plan administered by the Public
Employees Retirement Association (PERA). The Public Employees Defined
Contribution Plan (PEDCP) is a multi-employer deferred compensation plan.
Elected officials who are covered by a public or private pension plan
because of their employment are nat eligible to participate in the PEDCP.
Plan benefits depend solely on amounts contributed to the plan plus
investment earnings. Minnesota Statutes, Chapter 353D.03 requires that
both the elected local government official and the City contribute an
amount equal to 5°,6 of the elected local government official's salary.
There is no vesting period required to receive benefits in the PEDCP.
The City's total payroll in the year 1993 was $ 425,752. The City's con-
tributions were calculated using the base salary amount of $ 11,360. Both
the City and the elected local government official made the required 5.6
contribution, amounting to $ 568 from each source, or $ 1,136 in total.
As of June 30, 1993, and for the fiscal year then ended, PERA held no
securities issued by the City or other related parties.
27
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 3 - DETAIL NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
4. Deferred Revenue
Deferred revenue at December 31, 1993, consisted of:
Taxes Receivable -
Delinquent
Assessments Receivable -
Deferred
Delinquent
Total
Debt
General Service Total
$ s,oss $ - $ s,oss
57,068 611,135 668,203
262 1,023 1,285
$ 63,396 $ 612,1.58 $ 675,554
5. Bonds Payable
The following is a summary of bond transactions for the year ended
December 31, 1993:
Bonds Payable -
January 1, 1993
Bonds Issued
Bonds Retired
Bonds Payable -
December 31, 1993
General
Obligation General
Special Obligation
Assessment Revenue Total
$ 1,150,000 $ 475,000 $ 1,625,000
550,000 - 550,000
65,000) - 65,000)
$ 1,635,000 $ 475,000 $ 2,110,000
28
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
1 December 31, 1993
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
5. Bonds Payable (Continued)
Bonds outstanding at December 31, 1993, comprise the following issues:
General Obligation Special Assessment Bonds:
$ 1,400,000 General Obligation Improvement
Bonds of 1986 due in annual installments
of $ 65,000 through 2001, interest at
5.25 to 7.75 percent $ 520,000
$ 200,000 General Obligation Improvement
' Bonds of 1992 due in annual installments
of $ 10,000 to $ 20,000 through December 1,
2007, interest at 4.60 to 6.40 percent 200,000
$ 365,000 General Obligation Improvement Bonds
of 1992 - Series B due in annual installments of
$ 15,000 to $ 35,000 through December 1, 2008,
' interest at 4.50 to 6.60 percent 365,000
$ 550,000 General Obligation Improvement Bonds
of 1993 due in annual installments of $ 25,000
to $ 50,000 through December 1, 2008, interest
at 3.00 to 5.30 percent 550,000
Total General Obligation Special Assessment Bonds 1,635,000
General Obligation Revenue Bonds:
' $ 475,000 General Obligation Water Revenue
Bonds of 1992 due in annual installments of
$ 30,000 to $ 50,000 through December 1, 2005,
interest at 4.00 to 6.00 percent 475,000
Total Bonds Payable
$ 2,110,000
The annual requirements to amortize all bonded debt outstanding as of
December 31, 1993, including interest payments of $ 920,211 are:
29
1
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
B. Liabilities (Continued)
5. Bonds Payable (Continu ed)
General
Obligation General
Year Ending Special Obligation
December 31, Assessment Revenue Total
1994 $ 215,427 $ 55,177 $ 270,604
1995 211,737 53,978 265,715
1996 209,685 52,717 262,402
1997 202,195 56,397 258,592
1998 194,505 54,753 249,258
1999-2003 541,170 282,585 823,755
2004-2008 790,885 109,000 899,885
Totals $ 2,365,604 $ 664,607 $ 3,030,211
6. vital Lease Obligati on
During 1991, the City entered into a capital lease for equipment. Future
minimum lease payments together with the present value of the net minimum
' lease payments are as follows for the years ending December 31:
1994 $ 9,588
1995 4,794
Future Minimum Lease Payme nts 14,382
Less: Amou nt Representing Interest (789)
Present Val ue of Minimum L ease
Payments $ 13,593
' C. Fund Equity
Fund equity balances are classified as follows to reflect the limitations and
' restrictions of the respective funds:
30
1
1
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNOS AND ACCOUNT GROUPS (Continued)
C. Fund Equity (Continued)
1. Fund Balance
a. Reserved Fund Balance -
Reserved fund balance is comprised of the following:
General
Fund
Reserved for Fire $ 325,982
Reserved for Street Maintenance 19,530
Reserved for Police 5,938)
Total $ 339,574
b. Unreserved fund balance is comprised of the following:
Special Debt Capital
General Revenue Service Pro ects _
Designated for Capital
Expenditures $ 530,638 $ - $ - $ 243,715 $
Designated for Debt
Service 257,334 - 953,754 -
Undesignated 148,687 100,007 - -
Total Unreserved
774,353
1,211,088
251,694
Fund Balance $ 936,659 $ 103,007 $ 953,754 $ 243,715 $ 2,237,135
2. Contributed Capital
Contributed capital in the Enterprise Funds represents fixed assets which
were purchased by other funds and transferred to the Enterprise Funds.
Changes in contributed capital for the year-ended December 31, 1993, are
as follows:
31
CITY OF ST. JOSEPH, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1993
(Continued)
NOTE 3 - DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS (Continued)
C. Fund Equity (Continued)
2. Contributed Capital (Continued)
Contributed Capital - January 1,
1993
Add: 1993 Contributions
Contributed Capital - December 31,
1993
NOTE 4 - STATEMENT OF CASH FLOWS
Refuse Water Sewer
Fund Fund Fund Total
$ 3,725 $ 265,135 $ 2,030,455 $ 2,299,315
1,318,978 457,148 1,776,126
$ 3,725 $ 1,584,113 $ 2,487,603 $ 4,075,441
During 1992, the City had transactions in the Water and Sewer Enterprise Funds
which affected recognized assets, but did not result in cash receipts or cash
payments.
Construction in Progress was contributed to these enterprise funds in the follow-
ing amounts:
Water Fund $ 1,318,978
Sewer Fund 457,148
Total $ 1,776,126
1
NOTE 5 - SEGMENT INFORMATION FOR ENTERPISE FUNDS
The City maintains three Enterprise Funds which provide refuse, water and sewer
services. Segment information for the year ended December 31, 1993, is:
Operating Revenues
Depreciation
Operating Income (Loss}
Net Income (Loss)
Fixed Assets -
Additions
Deletions
Net Working Capital
Total Assets
Total Equity
Refuse Water Sewer
Fund Fund Fund Total
$ 79,359 $ 152,592 $ 150,332 $ 382,283
- 11,705 58,263 69,968
9,747 49,322 (26,472) 32,597
9,747 20,738 (68,430) (37,945)
- 1,320,278 460,459 1,780,737
29,657 82,962 324,350 436,969
35,478 1,757,491 2,217,179 4,010,148
29,657 1,746,430 2,204,628 3,980,715
32
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS
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CITY OF ST. JOSEPH, MINNESOTA
THE GENERAL FUND
The General Fund accounts for all revenues and expenditures of a governmental unit
which are not accounted for in other funds, and it is usually the largest and most
important accounting activity for state and local governments. It normally
receives a greater variety and number of taxes and other general revenues than any
other fund. This fund has flowing into it such revenues as general property
taxes, licenses and permits, fines and penalties, rents, charges for current
services, state-shared taxes, and interest earnings. The fund's resources also
finance a wider range of activities than any other fund. Most of the current
operations of governmental units will be financed from this fund.
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CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
COMPARATIVE BALANCE SHEETS
Cash and Investments
Taxes Receivable -
Delinquent
Special Assessments Receivable -
Deferred
Delinquent
Accounts Receivable
Interest Receivable
Due from Other Governmental Units
Loans Receivable
TOTAL ASSETS
ASSETS
___December 31^^^
$ 1,312,100
6,066
57,068
262
4,000
13,224
22,989
7,220
$ 1,422,929
$ 1,269,428
4,275
46,801
55,909
15,716
7,220
$ 1,399,349
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable $
Due to Other Governmental Units
Deferred Revenue
Compensated Absences Payable
Total Liabilities
Fund Balance:
Reserved
Unreserved -
Designated
Undesignated
Total Fund Balance
TOTAL LIABILITIES AND FUND BALANCE
40,425 $ 48,990
14,620 85
63,396 51,076
28,255 28,255
146,696 128,406
339,574
787,972
148,687
1,276,233
302,700
830,000
138,243
1,270,943
$ 1,422,929
$ 1,399,349
33
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CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1993
REVENUES:
General Property Tax
Special Assessments
Licenses and Permits
Intergovernmental -
State -
Local Government Aid
HACA
Equalization Aid
Disparity Aid
Police Aid
Fire Aid
County Grants
Total Intergovernmental
Charges for Services -
General Government
Public Safety
Culture and Recreation
Total Charges for Services
Budget _
$ 246,000 $
4,000
27,000
330,788
19,800
13,800
3,400
367,788
6,250
90,000
3,600
99,850
Fines
Miscellaneous -
Sale of Property
Interest
Refunds and Reimbursements
Contributions
Other
' Total Miscellaneous
TOTAL REVENUES
29,1OD
150,024
23,215
40,223
330,777
64,555
39,775
583
26,252
299
3,913
466,154
9,970
92,591
7,164
109,725
39,559
33,000
8,000
1,500
1,700
44,200
817,938
390
16,573
9,551
7,575
1,656
35,745
864,645
Over
(Under)
Budget
$ (95,976)
19,215
13,223
(11)
64,555
39,775
583
6,452
(13,501)
513
98,366
3,720
2,591
3,564
9,875
10,459
390
(16,427)
1,551
6,075
44)
8,455)
46,707
34
CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1993
(Continued)
Over
(Under)
Budget Actual Budget
EXPENDITURES:
General Government:
Mayor and Council -
Salaries and Benefits
Supplies $ 15,745
350 $ 19,304
245 $ 3,559
(105)
Travel and Conferences 2,500 616 (1,884)
Advertising 1,400 2,166 766
Insurance 550 475 (75)
Dues and Subscriptions 6,000 5,371 (629)
Other 500 48 (452)
Legislative Committees -
Legislative Bodies 2,500 3,130 630
Other 300 545 245
Elections -
Supplies 75 15 (60)
Professional Services - 200 200
Capital Expenditures " 100 - (100)
Assessing -
Salaries and Benefits 6,785 8,935 2,150
Supplies 150 104 (46)
Travel and Conferences 100 40 (60)
Insurance 10 - (10)
Other 100 22 (78)
Administration -
Salaries and Benefits 53,210 58,762 5,552
Supplies and Maintenance 3,300 3,397 97
Telephone 2,000 2,036 36
' Travel and Conferences
Insurance 800
1,500 399
1,125 (401)
(375)
Capital Expenditures 6,372 4,260 (2,112)
Other 1,225 1,986 761
Accounting -
Salaries and Benefits 29,762 34,723 4,961
Supplies ~ 595 1,717 1,122
Travel and Conferences 700 265 (435)
Other 400 308 (92)
Independent Auditing -
Services and Charges 7,500 6,200 (1,300)
' Legal -
Services and Charges 8,000 17,005 9,005
Planning and Zoning -
Professional Services 5,000 185 (4,815)
Consolidation Study 10,800 (2,220) (13,020)
35
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CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1993
(Continued)
Over
(Under)
Budget Actual Budget
EXPENDITURES: (Continued)
General Government: {Continued)
General Government Buildings -
Salaries and Benefits $ 1,945 $ 1,857 $ (88)
Supplies and Maintenance 1,375 5,433 4,058
Insurance 2,400 1,687 (713)
Utilities 5,800 6,222 422
Professional Services 2,000 - (2,000)
Other 1,950 8,620 6,670
Total General Government 183,799 195,183 11,384
Public Safety:
Police -
Salaries and Benefits 185,250 203,817 18,567
Supplies and Maintenance 4,900 6,883 1,983
Professional Services 15,475 19,038 3,563
Capital Expenditures 8,232 3,999 (4,233)
Travel and Conferences 600 301 (299)
Insurance 3,600 3,544 (56)
Advertising 600 180 (420)
Other 725 949 224
Fire Protection -
Salaries and Benefits 11,565 5,804 (5,761)
Supplies and Maintenance 13,565 11,728 {1,837)
Professional Services 1,750 3,096 1,346
Utilities 3,350 2,325 (1,025)
Travel and Conferences 3,500 4,978 1,478
Fire Protection 60,650 57,221 (3,429)
Insurance 9,500 4,446 (5,054)
State Aid Reimbursement 14,600 - (14,600)
Pension Relief Fund 6,668 22,802 16,134
Capital Expenditures 10,391 3,854 (6,537)
Other 5,840 2,801 (3,039)
Building Inspection -
Professional Services 4,550 8,241 3,691
Supplies 450 64 {386)
Other 520 2,385 1,865
Communication Service -
Telephone 2,000 2,728 728
Supplies and Maintenance 500 279 (221)
Capital Expenditures 3,988 2,605 (1,383)
36
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CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1993
(Continued)
EXPENDITURES: (Continued)
Public Safety: (Continued)
Automotive Service -
Salaries and Benefits
Supplies and Maintenance
Insurance
Motor Vehicle
Emergency Management Service -
Professional Services
Travel
Capital Expenditures
Other
Animal Control -
Supplies
Professional Services _
Other
Total Public Safety
Public Works:
Ordinance and Enforcement -
Salaries and Benefits
Professional Services
Street Maintenance -
Salaries and Benefits
Supplies and Maintenance
Utilities
Capital Expenditures
Professional Services
Travel and Conferences
Insurance
Other
Ice and Snow Removal -
Salaries and Benefits
Supplies and Maintenance
Capital Expenditures
Engineering -
Professional Services
Over
(Under)
Budget Actual Budget
$ 920 $ - $ (920)
7,400 7,898 498
500 - (500)
7,000 - (7,000)
300 375 75
400 - {400)
315 165 (150)
100 44 (56)
20 90 70
130 - 130)
389,854 382,640 7,214)
290 - (290)
- 278 278
60,625 59,139 (1,486)
13,725 12,571 (1,154)
3,150 2,951 (199)
95,034 35,739 (59,295)
13,500 1,043 (12,457)
200 80 {120)
6,500 5,430 (1,070)
550 425 (125)
8,980 8,914 (66)
7,300 8,672 1,372
675 - (675)
11,000 12,272 1,272
37
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CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET ANO ACTUAL
Year Ended December 31, 1993
(continued)
EXPENDITURES: (Continued)
Public Works: (Continued)
Street Lighting -
Supplies and Maintenance
Utilities
Capital Expenditures
Street Cleaning -
Salaries and Benefits
Supplies and Maintenance
Other
Total Public Works
Culture and Recreation:
Participant Recreation -
Salaries and Benefits
Supplies and Maintenance
Professional Services
Travel and Conferences
Insurance
Advertising
Other
Ball Park and Skating Rink -
Salaries and Benefits
Supplies and Maintenance
Utilities
Capital Expenditures
Hockey Rink -
Salaries and Benefits
Supplies and Maintenance
Utilities
Maintenance Shop -
Supplies and Maintenance
Utilities
Other
Park Areas -
Salaries and Benefits
Supplies and Maintenance
Insurance
Utilities
Capital Expenditures
Other
Over
{Under)
Budget Actual Budget
$ 425 $ - $ (425)
18,000 19,317 1,317
2,200 2,472 272
1,720 3,183 1,463
1,180 1,730 550
350 194 156)
245,404 174,410 70,994)
130 130
325 - (325)
4,400 4,400 -
300 (300)
775 435 (340)
200 - (200)
150 769 619
2,340 2,269 (71)
800 119 (681)
1,150 537 (613)
1,520 - (1,520)
1,670 1,386 (284)
475 2,923 2,448
500 75 (425)
2,100 2,072 (28)
1,410 1,335 (75)
625 360 (265)
32,205 24,728 (7,477)
8,825 6,493 (2,332)
500 556 56
2,110 3,040 930
26,100 8,331 (17,769)
375 - (375)
38
CITY OF ST. JOSEPH, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1993
(Continued)
EXPENDITURES: (Continued)
Culture and Recreation: (Continued)
Shade Tree Disease Control -
Supplies and Maintenance
Travel and Conferences
Other
Boy Scout and RSVP -
Supplies and Maintenance
Insurance
Other
Total Culture and Recreation
Miscellaneous:
Other
TOTAL EXPENDITURES
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING USES:
Operating Transfers Out
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING
USES
FUND BALANCE - January 1
RESIDUAL EQUITY TRANSFER
FUND BALANCE - December 31
Over
{Under)
Budget Actual Budget
$ 50 $ - $ (50)
125 35 (90)
100 - (100)
252 252
400 125 (275)
1,100 1,100 -
90,630 61,470 (29,160)
1,000 2,567 1,567
910,687 816,270 94,417)
(92,749) 48,375 141,124
- 297,130) (297,130)
$ 92,749) (248,755) $(156,006)
1,270,943
254,045
$ 1,276,233
39
' CITY OF ST. JOSEPH, MINNESOTA
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes
' or other earmarked revenue sources. They are usually required by statute, charter
provision, or local ordinance to finance particular functions or activities of
government.
CITY OF ST. JOSEPH, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 1993
With Comparative Totals for December 31, 1992
ASSETS
Cash and Investments
Accounts Receivable
TOTAL ASSETS
Recreation DARE Minnesota Totals
Center Pro ram Beautification 1993 1992
$ 24,507 $ 500
$ 24,507 $ 500
$ 8,000 $ 33,007 $ 35,916
70,000 70,000 -
$ 78,000 $ 103,007 $ 35,916
$ 78,000 $ 103,007 $ 35,916
LIABILITIES AND FUND BALANCE
Fund Balance:
Unreserved -
Undesignated $ 24,507 $ 500
40
CITY OF ST. JOSEPH, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1993
With Comparative Totals for the Year Ended December 31, 1992
Recreation DARE Minnesota Totals
Center Program Beautification 1993 1992
REVENUES:
Miscellaneous -
Interest $ 518 $ -
Contributions - 1,558
Total Revenues 518 1,558
EXPENDITURES:
Public Safety -
Salaries and Benefits - 839
Supplies - 1,211
Travel and Conference - 65
Miscellaneous -
Reimbursement of Prior
Years' Donations -
Total Expenditures - 2,115
EXCESS OF REVENUES (UNDER)
EXPENDITURES 518 (557)
OTHER FINANCING SOURCES
(USES):
Operating Transfers In - 1,057
Operating Transfers Out (11,927) -
Total Other Financing
Sources (Uses) (11,927) 1,057
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING SOURCES
(USES) (11,409) 500
FUND BALANCE - January 1 35,916 -
FUND BALANCE - December 31 $ 24,507 $ 500
$ - $ 518 $ 4,282
- 1,558 -
- 2,076 4,282
- 839 -
- 1,211 -
- 65 -
- - 50,798
- 2,115 50,798
- (39) (46,516)
78,000 79,057 -
- 11,927) -
78,000 67,130 -
78,000 67,091 (46,516)
- 35,916 82,432
$ 78,000 $ 103,007 $ 35,916
41
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CITY OF ST. JOSEPH, MINNESOTA
DEBT SERVICE FUNDS
Debt Service Funds are created to account for the a ment of interest and
Py
' principal on long-term, general obligation debt other than debt issued for and
serviced primarily by a governmental enterprise.
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CITY OF ST. JOSEPH, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1993
With Comparative Totals for December 31, 1992
ASSETS
Cash and Investments
Special Assessments Receivable -
Deferred
Delinquent
Due From Other Funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Cash Overdraft
Accounts Payable
Deferred Revenue
Total Liabilities
Fund Balance:
Unreserved -
Designated for Debt Service
Undesignated (Deficit)
Total Fund Balance
TOTAL LIABILITIES AND FUND
BALANCE
General
General General Obligation
Obligation Obligation Water
Improvement Improvement Revenue
Bonds Bonds Bonds
of 1986 of 1992 of 1992
$ 742,187 $ 56,138 $ 129
113,696 54,501 -
1,023 - -
$ 856,906 $ 110,639 $ 129
$ - $ - $ -
265 - -
114,719 54,501 -
114,984 54,501 -
741,922 56,138 129
741,922 56,138 129
$ 856,906 $ 110,639 $ 129
i
General
Obligation
Improvement
Bonds
of 1992-B
$ 39,575
255,220
$ 294,795
General
Obligation
Improvement
Bonds
of 1993
$ 115,990
187,718
$ 303,708
Totals
$ 954,019 $ 1,213,423
611,135 251,584
1,023 644
- 20,000
$ 1,566,177 $ 1,485,651
$ - $ - $ - $ 32,703
265 110
255,220 187,718 612,158 252,228
255,220 187,718 612,423 285,041
39,575 115,990 953,754 821,422
379,188
39,575 115,990 953,754 1,200,610
$ 294,795 $ 303,708 $ 1,566,177 $ 1,485,651
42
CITY OF ST. JOSEPH, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1993
With Comparative Totals for the Year Ended December 31, 1992
REVENUES:
Special Assessments
Miscellaneous -
Interest
Other
Total Revenues
EXPENDITURES:
Miscellaneous
Debt Service -
Bond Principal
Bond Interest and Fiscal Charges
Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES:
Operating Transfers In
Proceeds from the Sale of Bonds
Total Other Financing Sources
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
FUND BALANCE (DEFICIT) - January 1
RESIDUAL EQUITY TRANSFER
FUND BALANCE - December 31
General General General
Obligation Obligation Obligation
Improvement Improvement Improvement
Bonds Bonds Bonds
of 1972 of 1978 of 1978-A
$ 286 $ 1,601 $ 259
999 8,139 449
1,285 9,740 .708
1,285 9,740 708
1,285 9,740 708
60,879 332,668 18,344
(62,164) (342,408) (19,052)
$ - $ - $ -
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
General General General
Obligation Obligation Obligation
Improvement Improvement Improvement
Bonds Bonds Bonds
of 1983 of 1986 of 1992
$ 7,032 $ 37,736 $ 8,854
17,657 1,985
18,533 58,700 -
25,565 114,093 10,839
General
Obligation General
Water Obligation
Revenue Improvement
Bonds Bonds
$ -
87
15,000
15,087
$ 13,346
987
23,710
38,043
65,000 - - -
982 44,423 11,715 29,374 21,708
982 109,423 11,715 29,374 21,708
24,583 4,670 (876) (14,287) 16,335
- - - 10,500 -
- - - 10,500 -
24,583 4,670 (876) (3,787) 16,335
(32,703) 737,252 57,014 3,916 23,240
8,120 - - -
$ - $ 741,922 $ 5fi,138 $ 129 $ 39,575
(Continued...)
43
CITY OF ST. JOSEPH, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1993
With Comparative Totals for the Year Ended December 31, 1992
(Continued)
REVENUES:
Special Assessments
Miscellaneous -
Interest
Other
Total Revenues
EXPENDITURES:
Miscellaneous
Debt Service -
8ond Principal
Bond Interest and Fiscal Charges
Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES:
Operating Transfers In
Proceeds from the Sale of Bonds
Total Other Financing Sources
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
FUND BALANCE - January 1
RESIDUAL EQUITY TRANSFER
FUND BALANCE - December 31
General
Obligation
Improvement
Bonds
of 1993
$ -
100,000
15,990
115,990
115,990
$ 115,990
Totals
1993 1992
$ 69,114 $ 132,800
30,303 85,084
115,943 70,304
215,360 288,188
65,000
108,202
173,202
2,138
226,000
65,071
293,209
42,158
110,500
15,990
126,490
16$,648
1,200,610
415,504)
$ 953,754
(5,021)
17,413
17,413
12,392
1,188,218
$ 1,200,610
44
CITY OF ST. JOSEPH, MINNESOTA
CAPITAL PROJECTS FUNDS
' Ca ital Pro'ects Funds are created to account for all resources used for the
P J
acquisition of capital facilities by a governmental unit except those financed by
' enterprise funds.
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CITY OF ST. JOSEPH, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 1993
With Comparative Totals for December 31, 1992
ASSETS
Cash and Investments
Due from Other Governmental Units
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
Liabilities:
Cash Overdraft
Accounts Payable
Construction Contracts Payable
Total Liabilities
Fund Balance:
Unreserved -
Designated for Capital Improvements
Undesignated (Deficit)
Total Fund Balance
TOTAL LIABILITIES AND
FUND BALANCE
Water DBL
Storage Labs
Project Project
$ 59,794 $ 86,768
$ 59,794 $ 86,768
East
Minnesota
Street
Project
$ 128,926
$ 128,926
$ - $ - $ -
3,408 - 10,875
36,885 - 13,682
40,293 - 24,557
19,501 86,768 104,369
19,501 86,768 104,369
$ 59,794 $ 86,768 $ 128,926
West
Minnesota
Street Totals
Project 1993 1992
$ - $ 275,488 $ 235,526
302,860 302,860 -
$ 302,860 $ 578,348 $ 235,526
$ 243,927 $ 243,927 $ 76,576
3,467 17,750 24,767
22,389 72,956 38,503
269,783 334,633 139,846
33,077 243,715 172,770
- - 77,090)
33,077 243,715 95,680
$ 302,860. $ 578,348 $ 235,526
45
CITY OF ST. JOSEPH, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
Year Ended December 31, 1993
With Comparative Totals for the Year Ended December 31, 1992
REVENUES:
Special Assessments
Intergovernmental -
Federal Grant
County Grants/Aids
Miscellaneous -
Contributions
Interest
Total Revenues
EXPENDITURES:
Capital Outlay -
Construction Costs
Other
Total Expenditures
EXCESS OF REVENUES (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Operating Transfers In
Proceeds from the Sale of Bonds
Total Other Financing Sources
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
FUND BALANCE (DEFICIT) - January 1
RESIDUAL EQUITY TRANSFER
FUND BALANCE - December 31
Baker/ Water DBL
7th Avenue Storage Labs
Project Project Project
$ - $ - $ -
- 535,116 -
- 1,789 .5,045
- 536,905 5,045
- 799,512 8,939
794 - -
794 799,512 8,939
(794) (262,607) (3,894)
- 200,000 -
- 200,000 -
(794) (62,607) (3,894)
(32,495) 82,108 90,662
33,289 - -
$ - $ 19,501 $ 86,768
East West
91st Minnesota Minnesota
Avenue Street Street Totals
Project Project Project 1993 1992
$ - $ 145,896 $ 16,431 $ 162,327 $ -
- - - 535,116 -
- - 334,903 334,903 -
- - 5,800 5,800 -
- 1,394 - 8,228 3,675
- 147,290 357,134 1,046,374 3,675
20,052 357,584 529,226 1,715,313 908,807
1,359 - 4,606 6,759 -
21,411 357,584 533,832 1,722,072 908,807
(21,411) (210,294) (176,698) (675,698) (905,132)
- 200,000
- 314,663 209,775 524,438 1,000,812
- 314,663 209,775 724,438 1,000,812
(21,411) 104,369 33,077 48,740 95,680
(44,595) - - 95,680 -
66,006 - - 99,295 -
$ - $ 104,369 $ 33,077 $ 243,715 $ 95,680
46
CITY OF ST. JOSEPH, MINNESOTA
ENTERPRISE FUNDS
Enterprise Funds are established to account for the financing of self-supporting
activities of governmental units which render services on a user charge basis to
the general public. The most universal type of governmental enterprise is the
public utility engaged in the provision of such basic services as water,
electricity, and natural gas. Sanitary sewer systems financed by user charges
have also assumed the status of public utility operations in many urban areas, and
many cities have combined water and sewer systems under the same management.
CITY OF ST. JOSEPH, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 1993
With Comparative Totals for December 31, 1992
ASSETS
Current Assets:
Cash and Cash Equivalents
Accounts Receivable
Total Current Assets
Fixed Assets:
Land and Land Improvements
Treatment Plant and Lines
Buildings
Machinery and Equipment
Construction in Progress
Less: Accumulated
Depreciation
Net Fixed Assets
TOTAL ASSETS
LIABILITIES AND FUNb EQUITY
Current Liabilities:
Accounts Payable
Due to Other Governmental
Units
Due to Other Funds
Compensated Absences Payable
Total Current Liabilities
Fund Equity:
Contributed Capital
Retained Earnings -
Unreserved (Deficit)
Total Fund Equity
TOTAL LIABILITIES AND
FUND EQUITY
Refuse Water Sewer
Fund Fund Fund
$ 19,449 $ 74,071 $ 308,338
16,029 19,952 28,563
35,478 94,023 336,901
- 12,996 4,940
- 488,344 1,391,599
- - 517,983
- 34,969 116,234
- 1,321,592 457,148
- 1,857,901 2,487,904
- 194,433) 607,626)
- 1,663,468 1,880,278
$ 35,478 $ 1,757,491 $ 2,217,179
$ 5,821 $ 2,650 $ 2,074
- 1,097 5,660
- 7,314 4,817
5,821 11,06 1 12,551
3,725 1,584,113 2,487,603
25,932 162,317 282,975)
29,657 1,746,430 2,204,628
$ 35,478 $ 1,757,491 $ 2,217,179
Totals
1993 1992
$ 401,858 $ 354,204
64,544 59,281
466,402 413,485
17,936 17,936
1,879,943 1,879,943
517,983 517,983
151,203 146,592
1,778,740 2,614
4,345,805 2,565,068
802,059) 732,091)
3,543,.746 1,832,977
$ 4,010,148 $ 2,246,462
$ 10,545 $ 30,629
6,757 5,763
- 20,000
12,131 9,700
29,433 66,092
4,075,441 2,299,315
94,726) 118,945)
3,980,715 2,180,370
$ 4,010,148 $ 2,246,462
47
CITY OF ST. JOSEPH, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1993
With Comparative Totals for the Year Ended December 31, 1992
OPERATING REVENUES:
Charges for Services
OPERATING EXPENSES:
Salaries and Related Taxes
and Benefits
Utilities
Supplies
Sewer Use Rental
Postage
Repairs and Maintenance
Fees and Tests
Dues and Subscriptions
Refuse Disposal
Depreciation
Insurance
Miscellaneous
Total Operating Expenses
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES):
Interest
Loss on Disposal of Fixed Asset
Total Non-Operating Revenues
(Expenses)
INCOME (LOSS) BEFORE OPERATING
TRANSFERS
Operating Transfers Out
NET INCOME (LOSS)
RETAINED EARNINGS (DEFICIT) -
January 1
RESIDUAL EQUITY TRANSFERS
RETAINED EARNINGS (DEFICIT) -
December 31
Refuse Water Sewer
Fund Fund Fund
$ 79,359 $ 152,592 $ 150,332
1,218 48,185 33,750
- 13,238 6,282
268 11,253 3,068
- - 63,068
261 450 338
- 9,188 2,089
232 5,.030 4,992
- 223 15
66,666 - 1,066
- 11,705 58,263
875 3,975 3,778
92 23 95
69,612 103,270 176,804
9,747 49,322 (26,472)
- 1,916 8,042
1,916 8,042
9,747 51,238 (18,430)
- 30,500) 50,000)
9,747 20,738 (68,430)
16,185 113,679 (248,809)
- 27,900 34,264
$ 25,932 $ 162,317 $(282,975)
Totals
1993 1992
$ 382,283 $ 346,051
83,153 75,041
19,520 17,571
14,589 18,281
63,068 52,354
1,049 1,006
11,277 57,338
10,254 4,694
238 238
67,732 64,358
69,968 69,205
8,628 -
210 688
349,686 360,774
32,597 (14,723)
9,958 20,481
- 653)
9,958 19,828
42,555 5,105
80,500) -
(37,945) 5,105
(118,945) (124,050)
62,164 -
$ 94,726) $(118,945)
48
CITY OF ST. JOSEPH, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 1993
With Comparative Totals for the Year Ended December 31, 1992
CASH FLOWS fROM OPERATING ACTIVITIES:
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by Operating Activities:
Depreciation
Change in Assets and Liabilities:
(Increase)-in Accounts Receivable
Decrease in Interest Receivable
Decrease in Special Assessments Receivable
Decrease in Due from Other Governmental Units
Increase (Decrease) in Accounts Payable
Increase in Due to Other Governmental Units
(Decrease) in Due to Other Funds
(Decrease) in Deferred Revenue
Increase in Compensated Absences Payable
Total Adjustments
Net Cash Provided by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating Transfers to Other Funds
Residual Equity Transfers
Net Cash Used by Noncapitai Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Capital Expenditures
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, January 1
Cash and Cash Equivalents, December 31
Refuse Water
Fund Fund
$ 9,747 $ 49,322
- 11,705
(1,656) (876)
356 83
- 77
- (20,000)
- 1,736
1,300) 7,275)
8,447 42,047
- (30,500)
- 27,900
(2,600)
- (1,300)
- 1,916
8,447 40,063
11,002 34,008
$ 19,449 $ 74,071
Sewer Totals
Fund 1993 1992
$ (26,472) $ 32,597 $ {14,723)
58,263 69,968 69,205
(2,731) (5,263) (9,546)
- - 3,341
- - 328
- - 1,660
(20,523) (20,084) 11,442
917 994 5,763
- (20,000) -
{2,818)
695 2,431 3,339
36,621 28,046 82,714
10,149 60,643 67,991
(50,000) {80,500) -
34,264 62,164 -
15,736) (18,336) -
{3,311) (4,611) (4,890)
8,042 9,958 20,481
(856) 47,654 83,582
309,194 354,204 270,622
$ 308,338 $ 401,858 $ 354,204
49
CITY OF ST. JOSEPH, MINNESOTA
STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1993
1993 1992
AMOUNT AVAILABLE AND TO BE PROVIDED FOR
THE PAYMENT OF GENERAL LONG-TERM DEBT:
Amount Available in Debt Service Funds $ 953,754 $ 1,200,610
Amount to be Provided from Special
Assessments 612,158 252,228
Amount to be Provided for Compensated
Absences Payable 31,665 18,492
Amount to be Provided for Retirement of
General Long-Term Debt 557,681 194,037
TOTAL AVAILABLE AND TO BE PROVIDED $ 2,155,258 $ 1,665,367
GENERAL LONG-TERM DEBT:
Compensated Absences Payable $ 31,665 $ 18,492
Capital Lease Obligation 13,593 21,875
Bonds Payable 2,110,000 1,625,000
TOTAL GENERAL LONG-TERM DEBT $ 2,155,258 $ 1,665,367
50
CITY OF ST. JOSEPH, MINNESOTA
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Year Ended December 31, 1993
Federal Assistance
Number
CFDA No. 14.228
Funding Source Grant Name Project Time Period
U.S. Department of Community April 16, 1992 to
Housing and Urban Development December 31, 1993
Development Biock Grant -
Comprehensive
Improvement
Project
Audit Report
This Period
January 1, 1993 to
December 31, 1993
Revenues Expenditures
This This
Report Report
$ 535,116 $ 535,116
51
' CITY OF ST. JOSEPH, MINNESOTA
' REPORT ON THE INTERNAL CONTROL STRUCTURE
BASED ON AN AUDIT OF THE FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
March 10, 1994
' Honorable Mayor and City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited the financial statements of the City of St. Joseph, Minnesota, as
' of and for the year ended December 31, 1993, and have issued our report thereon
dated March 10, 1994.
We conducted our audit in accordance with generally accepted auditing standards
' and Government Auditing Standards, issued by the Comptroller General of the Untied
States. Those standards require that we plan and perform the audit to obtain rea-
sonable assurance about whether the financial statements are free of material
' misstatement.
In planning and performing our audit of the financial statements of City of St.
Joseph, Minnesota, for the year ended December 31, 1993, we considered its inter-
, nal control structure in order to determine our auditing procedures for the pur-
pose of expressing our opinion on the financial statements and not to provide
assurance on the internal control structure.
' The management of City of St. Joseph, Minnesota, is responsible for establishing
and maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected benefits
' and related costs of internal control structure policies and procedures. The
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded against loss
' from an authorized use or disposition, and that transactions are executed in
accordance with management's authorization and recorded properly to permit the
preparation of the financial statements. Because of inherent limitations in any
' internal control structure, errors or irregularities may nevertheless occur and
not be detected. Also, projection of any evaluation of the structure to future
periods is subject to the risk that procedures may become inadequate because of
changes in conditions or that the effectiveness of the design and operation of
1 policies and procedures may deteriorate.
For the purpose of this report, we have classified the significant internal con-
, trot structure policies and procedures in the following categories: cash
receipts, cash disbursements, cash and investment balances, payrolls, receivables,
payables, other assets and liabilities and general ledger.
' 52
n
For all of the internal control structure categories listed on the previous page,
we obtained an understanding of the design of relevant policies and procedures and
whether they have been placed in operation, and we assessed control risk.
We noted certain matters involving the internal control structure and its opera-
tion that we consider to be reportable conditions under standards established by
the American Institute of Certified Public Accountants. Reportable conditions
involve matters coming to our attention relating to significant deficiencies in
the design or operation of the internal control structure that, in our judgment,
could adversely affect the City's ability to record, process, summarize, and
report financial data consistent with the assertions of management in the finan-
cial statements.
' 1. The City does not have adequate segregation of duties due to a limited number
of office employees. Management has determined that this weakness is not
practical to correct.
~'~
A material weakness is a reportable condition in which the design or operation of
one or more of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may occur
and not be detected within a timely period by employees in the normal course of
performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose
all matters in the internal control structure that might be reportable conditions
and, accordingly, would not necessarily disclose all reportable conditions that
are also considered to be material weaknesses as defined above. However, we do
not believe the reportable condition described above is a material weakness.
We also noted other matters involving the internal control structure and its oper-
ation that we have reported to the management of City of St. Joseph, Minnesota, in
a separate letter dated March 10, 1994.
This report is intended for the information of management and the City Council.
However, this report is a matter of public record and its distribution is not
limited.
KERN, DEWENTER, VIERE, LTD.
53
fl
ii
u
CITY OF ST. JOSEPH, MINNESOTA
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL
STRUCTURE USED IN ADMINISTERING FEDERAL
FINANCIAL ASSISTANCE PROGRAMS
March 10, 1994
Honorable Mayor and City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited the financial statements of the City of St. Joseph, Minnesota, as
of and for the year ended December 31, 1993, and have issued our report thereon
dated March 10, 1994. We have also audited the compliance of the City of St.
Joseph, Minnesota, with requirements applicable to major federal financial
assistance programs and have issued our report thereon dated March 10, 1994.
We conducted our audit in accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller General of the United
States; and Office of Management and Budget (OMB) Circular A-128, Audits of State
and Local Governments. Those standards and OMB Circular A-128 require that we
plan and perform the audit to obtain reasonable assurance about whether the finan-
cial statements are free of material misstatement and about whether the City of
St. Joseph, Minnesota, complied with laws and regulations, noncompliance with
which would be material to a major federal financial assistance program.
In planning and performing our audit for the year ended December 31, 1993; we con-
sidered the City's internal control structure in order to determine our auditing
procedures for the purpose of expressing our opinions on the City's financial
statements, and on compliance of the City of St. Joseph, Minnesota, with require-
ments applicable to major programs, and to report on the internal control struc-
ture in accordance with OMB Circular A-128. This report addresses our
consideration of internal control structure policies and procedures relevant to
compliance with requirements applicable to federal financial assistance programs.
We have addressed internal control structure policies and procedures relevant to
our audit of the financial statements in a separate report dated March 10, 1994.
54
The management of the City of St. Joseph, Minnesota, is responsible for establish-
ing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide man-
agement with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition, that transactions are executed
' in accordance with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted account-
ing principles, and that the federal financial assistance program is managed in
' compliance with applicable laws and regulations. Because of inherent limitations
in any internal control structure, errors, irregularities, or instances of noncom-
pliance may nevertheless occur and not be detected. Also, projection of any eval-
uation of the structure to future periods is subject to the risk that procedures
' may become inadequate because of changes in conditions or that the effectiveness,
of the design and operation of policies and procedures may deteriorate.
' For the purpose of this report, we have classified the significant internal con-
trol structure policies and procedures used in administering the federal financial
assistance program in the following categories:
ACCOUNTING CONTROLS:
Activity Cycles -
' Treasury or financing
Revenue/receipts
Purchases/disbursements
' External financial reporting
Payroll/personnel
Financial Statement Captions -
Cash and investments
Receivables
Prepaid items
Payables and accrued liabilities
Debt
Fund equity
I Accounting Applications -
Biilings
Receivables
Cash receipts
Purchasing and receiving
Accounts payable
Cash disbursements
Payroll
Inventory control
Fixed assets
' General ledger
55
1
ADDITIONAL CONTROLS USED IN ADMINISTERING FEDERAL PROGRAMS:
' General Requirements -
Political activity
Davis-Bacon Act
Civil rights
Cash management
Federal financial reports
Allowable costs/cost principles
Drug-free workplace
Administrative requirements
Specific Requirements -
Types of costs allowed or unallowed
Matching, level of effort, or earmarking
Reporting
Special tests and provisions: none
Claims for Reimbursements
' Amounts Claimed or Used for Matching
For all of the internal control structure categories listed above, we obtained an
understanding of the design of relevant policies and procedures and determined
whether they have been placed in operation, and we assessed control risk.
During the year ended December 31, 1993, the City of St. Joseph, Minnesota, -
expended 100 percent of its total federal financial assistance under the following
major federal financial assistance program: Community Development Block Grant
Comprehensive Improvement Project.
We performed tests of controls, as required by OMB Circular A-128, to evaluate the
effectiveness of the design and operation of internal control structure policies
and procedures that we considered relevant to preventing or detecting material
noncompliance with specific requirements, general requirements, and requirements
governing claims for reimbursements and amounts claimed or used. for matching that
are applicable to the aforementioned major program. Our .procedures were less in
scope than would be necessary to render an opinion on these internal control
structure ..policies and procedures. Accordingly, we do not express such an
opinion.
We noted certain matters involving the internal control structure and its opera-
tion that we consider to be reportable conditions under standards established by
the American Institute of Certified Public Accountants. Reportable conditions
involve matters coming to our attention relating to significant deficiencies in
the design or operation of the internal control structure that, in our judgment,
could adversely affect the City's ability to administer federal financial
' assistance programs in accordance with applicable laws and regulations.
1. The City does not have adequate segregation of accounting duties due to a lim-
ited number of office employees. Management has determined that this weakness
is not practical to correct.
56
1
0
A material weakness is a reportable condition in which the design or operation of
one or more of the internal control structure elements does not reduce to a rela-
tively low level the risk that noncompliance with laws and regulations that would
be material to a federal financial assistance program may occur and not be
detected within a timely period by employees in the normal course of performing
their assigned functions.
Our consideration of the internal control structure policies and procedures used
in administering federal financial assistance would not necessarily disclose all
matters in the internal control structure that might be reportable conditions and,
accordingly, would not necessarily disclose all reportable conditions that are
also considered to be material weaknesses as defined on the previous page.
However, we do not believe the reportable condition described on the previous page
is a material weakness.
We also noted other matters involving the internal control structure and its oper-
ation that we have reported to the management of the City of St. Joseph,
Minnesota, in a separate letter dated March 10, 1994.
This report is
However, this
limited.
intended for the information of management and the City Council.
report is a matter of public record and its distribution is not
r
KERN, DEWENTER, VIERE, LTD.
57
' CITY OF ST. JOSEPH, MINNESOTA
SINGLE AUDIT REPORT ON COMPLIANCE WITH
THE GENERAL REQUIREMENTS APPLICABLE TO
FEDERAL FINANCIAL ASSISTANCE PROGRAMS
March 10, 1994
' Honorable Mayor and City Council
City of St. Joseph
St. Joseph, Minnesota
' We have audited the financial statements of the City of St. Jose h Minnesota as
p >
of and for the year ended December 31, 1993, and have issued our report thereon
' dated March 10, 1994.
We have applied procedures to test the City's compliance with the following
requirements applicable to its federal financial assistance program, which is
identified in the schedule of federal financial assistance, for the year ended
December 31, 1993.
' General Requirements -
Po]itical activity
Davis-Bacon Act
Civil rights
Cash management
federal financial reports
' Allowable coststcost principles
Drug-free workplace
Administrative requirements
' Our procedures were limited to the applicable procedures described in the Office
of Management and Budget's Compliance Supplement for Single Audits of State and
Local Governments. Our procedures were substantially less in scope than an audit,
the objective of which is the expression of an opinion on the City's compliance
with the requirements listed in the preceding paragraph. Accordingly, we do not
express such an opinion.
With respect to the items tested, the results of those procedures disclosed no
material instances of noncompliance with the requirements listed in the second
paragraph of this report. With respect to items not tested, nothing came to our
attention that caused us to believe that the City of St. Joseph, Minnesota, had
not complied, in all material respects, with those requirements. Also, the
results of our procedures did not disclose any immaterial instances of noncompli-
ance with those requirements.
58
' This report is intended for the information of management and the City Council.
However, this report is a matter of public record and its distribution is not
limited.
KERN, DEWENTER, VIERE, LTD.
1
0
' 59
CITY OF ST. JOSEPH, MINNESOTA
SINGLE AUDIT OPINION ON COMPLIANCE WITH
SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR
FEDERAL FINANCIAL ASSISTANCE PROGRAMS
March 10, 1994
Honorable Mayor and City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited the general purpose financial statements of the City of St.
Joseph, Minnesota, as of and for the year ended December 31, 1993, and have issued
our report thereon dated March 10, 1994.
We have audited City of St. Joseph, Minnesota, compliance with the requirements
governing types of services allowed or unallawed; eligibility; matching, level of
effort or earmarking; reporting; claims for advances and reimbursements; and
amounts claimed or used for matching that are applicable to its major federal
financial assistance program, which is identified in the accompanying schedule of
federal financial assistance, for the year ended December 31, 1993. The manage-
ment of City of St. Joseph,~Minnesota, is responsible for the City's compliance
with those requirements. Our responsibility is to express an opinion on compli-
ance with those requirements based on our audit.
We conducted our audit of compliance with those requirements in accordance with
generally accepted auditing standards, Government Auditing Standards, issued by
the Comptroller General of the United States, and Office of Management and Budget
(OMB) Circular A-128, Audits of State and Local Governments.-.Those standards and
OMB Circular A-128 require that we plan and perform the audit to obtain reasonable
assurance about whether material noncompliance with the requirements referred to
above occurred. An audit includes examining, on a test basis, evidence about the
City of St. Joseph, Minnesota's, compliance with those requirements. We believe
that our audit provides a reasonable basis for our opinion.
The results of our audit procedures did not disclose any immaterial instances of
noncompliance with the requirements referred to above.
60
1
' In our opinion, the City of St. Joseph, Minnesota, complied, in all material
respects, with the requirements governing types of services allowed or unallowed;
eligibility; matching, level of effort or earmarking; reporting; claims for
advances and reimbursements; and amounts claimed or used for matching that are
applicable to its major federal financial assistance program for the year ended
December 31, 1993.
This report is intended for the information of management and the City Counci].
However, this report is a matter of public record and its distribution is not
limited.
KERN, DEWENTER, VIERE, LTD.
61
i CITY OF ST. JOSEPH, MINNESOTA
REPORT ON COMPLIANCE BASED ON AN AUDIT OF
THE FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS AND MINNESOTA STATUTES
March 10, 1994
Honorable Mayor and City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited the financial statements of the City of St. Joseph, Minnesota, for
the year ended December 31, 1993, and have issued our report thereon dated March
10, 1994.
We conducted our audit in accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller General of the United
States; and the provisions of the Minnesota Legal Compliance Audit Guide for Local
Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota
Statutes Sec. 6.65. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.
Financial Statements
Compliance with laws, regulations, contracts, and grants applicable to the City of
St. Joseph, Minnesota, is the responsibility of the City's management. As part of
obtaining reasonable assurance about whether the financial statements are free of
' material misstatement, we performed tests of the City's compliance with certain
provisions of laws, regulations, contracts, and grants. However, the objective of
our audit of the financial statements was not to provide an opinion on overall
compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with res ect to the items tested the Cit
P ~ y
of St. Joseph, Minnesota, complied, in all material respects, with the provisions
referred to in the preceding paragraph. With respect to items not tested, nothing
came to our attention that caused us to believe that the City had not complied, in
all material respects, with those provisions.
' 62
1
fl
0
Legal Compliance
The Minnesota Legal Compliance Audit Guide for Local Government covers five main
categories of compliance to be tested: contracting and bidding, deposits and
investments, conflicts of interest, public indebtedness, and claims and
disbursements. Our study included all of the listed categories and other statutes
as we considered necessary in the circumstances. The results of our tests indi-
cate that for the items tested the City complied with the material terms and con-
ditions of applicable legal provisions. Further, for the items not tested, based
on our audit and the procedures referred to above, nothing came to our attention
to indicate that the City had not complied with such legal provisions.
This report is intended for the information of management and the City Council.
However, this report is a matter of public record and its distribution is not
limited.
KERN, DEWENTER, VIERE, LfD.
63
1
CITY OF ST. JOSEPH, MINNESOTA
FINDINGS ON COMPLIANCE WITH MINNESOTA STATUTES
CURRENT YEAR FINDINGS: None
PRIOR YEAR FINDINGS: None
CI'~
1
r
1
64