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Home My WebLink About4.07 Annual Financial Audit 1985-86 CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE:-- November 24, 1986 SUBJECT Fiscal Year 1985-86 Annual Audit EXHIBITS ATTACHED 1985-86 Financial Audit and Management Letter RECOMMENDATION Accept June 30, 1986 Financial Audit and Management Letter and the budget changes which are reflected r therein. FINANCIAL STATEMENT: See below DESCRIPTION Perry H. Carter , Certified Public Accountant , has completed the audit of the financial reports for the Dublin Municipal Corporation. The Combined Statement of Revenues and Expenditures (Page 4) shows that Dublin received $9 , 588, 860 in revenue and incurred expenditures of $7 , 766 , 223 for last fiscal year . Some comparisons of the budgeted amount to actual figures may be helpful and are shown below: Specific General Funds Revenues Amount Budgeted Actual % Difference 1) Property Tax $ 414, 500 $ 469, 513 + 13. 2% 2) Sales & Use Tax 4, 180,000 4, 174, 107 ( .1%) 3 . Licenses & Permits 282 , 300 410 , 243 + 45 . 3% 4. Charges for Services 470, 950 682 , 324 + 44 .8% General Funds Expenditures 5 . General Government $ 578 , 255 $ 542 , 616 ( 6.1%) 6 . Public Safety 1 , 641 , 141 1 , 522, 434 ( 7 . 2%) 7 . Transportation 385 , 232 335 , 819 (12 .8%) 8 . Vector Control 8 , 925 2 , 461 (72. 4%) 9 . Community Development 1 ,054, 453 961 , 541 ( 8. 8%) 10 .Culture & Recreation 393, 421 295, 191 (24. 9%) ll .Capital Outlay 35 , 647 32 , 824 ( 7 . 9%) Additional expenditures for government functions other than capital outlay occurred in special revenue and special assessment funds which amounted to $464, 879 , and are shown on Page 4 of the audit.. The capital outlay portion of expenditures accounted for the single largest difference between the amount budgeted and actual figures . Some of the capital outlay projects responsible for the difference are : Budgeted Spent 1 . San Ramon Road Phase II $ 1 , 105 , 922 $ 61 , 724 2 . Traffic Signal at Dublin Blvd/Sierra Ct 195, 000 40, 612 3 . Dougherty Road Widening 107 ,000 4 , 269 4. Landscaping Amador Valley Boulevard 215 , 000 19 , 098 5 . Shannon Park Play Ground 40, 000 1 , 600 6 . Shannon Center Kitchen 10, 000 -0- 7 . Sewage Facilities 72 ,800 -0- 8 . Civic Center Project 105,000 -0- The auditor also prepared a management letter that emphasizes some of his concerns about matters of internal control . This letter is used to help identify priorities of a financial management nature for the current year . Staff has discussed these concerns with the auditor and concur. The audit committee reviewed the audit and management letter and may wish to comment regarding these items . ---------------------------------------------------------------------------- COPIES TO: ITEM NO. � � 4 CITY OF DUBLIN FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1986 With Report of Certified Public Accountant Perry H. Carter, Certified Public Accountant TABLE OF CONTENTS . Page REPORT OF CERTIFIED PUBLIC ACCOUNTANT 1 . FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budzet (GAAP Basis ) and Actual - General, Special Revenue and Capital Projects Fund Types , 5 Combined statement of Revenes, Expenses and Changes in Fund Balance - All Proprietary Fund Types 6 Combined Statements Changes in Financial Position All Proprietary Fund Types 7 Notes to Financial Statements 8 FINANCIAL STATEMENTS OF INDIVIDUAL FUNDS GENERAL FUND Balance Sheet 17 Statement of Revenues, Expenditures and Changes in Fund Balance 18 SPECIAL REVENUE FUNDS Combining Balance Sheet 21 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 23 Perry H. Carter, Certified Public Accountant y TABLE OF CONTENTS - Page CAPITAL PROJECTS FUNDS Combining Balance Sheet 26 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 37 SPECIAL ASSESSMENT FUNDS Combining Balance Sheet 49 Combining Statement of Revenues, Expenditures and Changes in Fund Balances r 50 PROPRIETARY FUND TYPES Combining Balance Sheet 52 Combining Statement of Revenues, Expenses and Changes in Fund Balance 53 Combining Statement of Changes in Financial Position 54 GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets by Sources 56 Perry H. Carter, Certified Public Accountant PERRY H. CARTtR, C.P.A. =_ CERTIFIED PUBLIC ACCOUNTANT _ - 24326 MISSION BOULEVARD SUITE 4 HAYWARD,CALIFORNIA 94541 (415) 537-1835 REPORT OF CERTIFIED PUBLIC ACCOUNTANTS Honorable Mayor, Members of the City Council and City Manager City of Dublin Dublin, California I have examined the combined finan*cial statements of the City of _ Dublin, California and its combining and individual fund finan- cial statements as of and for the year ended June 30, 1986. My examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. In my opinion, the combined financial statements referred to ' above present fairly the financial position of the City of Dublin, California at June 30, 1986, and the results of its operations, and changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceeding year. Also, in my opinion, the combining and individual fund financial statements referred to above pre- sent fairly the financial position of the individual funds of the City of Dublin, California at June 30, 1986 and their results of operations, and changes in position of individual proprietary funds for the year then ended in conformity with generally ac- cepted accounting principles applied on a basis consistent with that of the preceding year. PERRY H. CARTER October 9, 1986 J t I i CITY OF DUBLIN COMBINED BALANCE. SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1986 Governmental Fund Types 3 Special Capital Debt Special ' General Revenue Projects Service Assessments ASSETS Cash and investments $ 5,310,525 $ 751 ,302 $ 2,009,703 $ 3,138,931 $ 609,619 Receivables: Taxes 12,063 Accounts 118,597 Special assessments 703,181 Accrued interest 259,397 Due from other governments 337,463 469,753 Due from other funds 478,845 Prepaid expenses 13 Land, machinery and equipment (net of accumulated depreciation-machinery and equipment of $25,115) Construction in progress $ X16 903 $ 1 221 055 $ 2,009,703 $ 3,138,931 $ 1 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 381 ,962 $ . 55,979 $ 269,599 $ $ . 33,018 Accrued wages 11 ,202 Deposits 3,125 I Due to other funds 460,498 18,346 Deferred revenues 577,331 . Bonds payable (Note 3) 8571869i�, Certificates of participation (Note 8) "! 393,164 516,477 287,945 1 ,471 ,343 . . FUND EQUITY Investments in general fixed assets Fund balance: Reserved for street improvement 5,669,588 179,416 Reserved for authorized expenditures/projects 29,452 525,162 1 ,721 ,758 ( 158,543 Reserved for facility design and acquisition 400,000 Reserved for vacation benefits 24,699 Reserved for debt service 3,138,931 Reserved for equipment replacement 6,123,739 704,578 1 ,721 ,758 3,138,931 ( 158,543) i TOTAL LIABILITIES AND FUND EQUITY $ 6,516,903 $ 1 ,221 ,055 $ 2,009,703 $ 3,138,931 $ 1 ,312,800 Continued See accompanying notes to financial statements. Perry R. Carter, Certified Public Accountant -2- I CITY OF DUBLIN COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1986 Proprietary Fiduciary Account Fund Types Fund Types Groups Total Internal Trust General (Memorandum Service Deposit Fixed Assets Only) ASSETS Cash and investments $ 6,143,006 $ 60,700 $ $ 18,023,786 Receivables: Taxes 12,063 Accounts 118,597 Special assessments 703,181 Accrued interest 259,397 Due from other governments 807,216 Due from other funds 478,845 Prepaid expenses 13 Land, machinery and equipment (net of accumulated depreciation-machinery and equipment of $25,115) 63,309 124,482 187,791 Construction in progress 6,397,418 6,397,418 $ 12,603,733 -� $ 60,700 $ 124,482 $ 26,988,307 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 20,458 $ $ $ 7611,016 Accrued wages 11 ,202 Deposits 60,700 63,825 Due to other funds 478,844 Deferred revenues 577;331 Bonds payable (Note 3) 11 8570P6,9 i Certificates of participation (Note 8) 11 ,968,000 11 ;968,000 ' 11 ,988,458 60,700 14,718,087 FUND EQUITY Investments in general fixed assets 124,482 124,482 Contributed capital 63,309 63,309 Fund balance: Reserved for street improvement 5,849,004 Reserved for authorized expenditures/projects 526,851 2,644,680 Reserved for facility design and acquisition 400,000 Reserved for vacation benefits 24,699 Reserved for debt service 3,138,931 Reserved for equipment replacement 25,115 25,115 615,275 124,482 12,270,220 TOTAL LIABILITIES AND FUND EQUITY $ 12,603.733 $ 60,7QQ $ 2 48 $ 2619888307 Concluded See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -3- CITY OF DUBLIN COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 1985 Governmental Fund Types Special Capital Debt Special Total General Revenue Projects Service Assessments (Memorandum Only) REVENUES Taxes $ 5,062,103 $ $ $ $ $ 5,062,103 Licenses and permits 410,243 410,243 Intergovernmental 1 ,057,247 379,132 1 ,436,379 Charges for services 682,324 682,324 Use of money and property 956,215 84,236 70,583 1 ,111 ,034 Fines and forfeits 13,524 55,471 68,995 Other revenue 24,147 184,321 173,316 381 ,78' Special assessment 435,998 435,99 8,205,803 703,160 173,316 506,581 9,588,860 EXPENDITURES General government 542,616 542,616 Public safety 1 ,522,434 38,620 115,193 1 ,676,247 Highways and streets 335,819 277,322 22,304 635,445 Health and welfare 2,461 11 ,440 13,901 Community development 961 ,541 961 ,541 Culture and leisure 295,191 295,191 Capital outlay 32,824 51 ,511 3,038,977 517,970 3,641 ,282 3,692,886 378,893 3,038,977 655,467 .7,766,223 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 4,512,917 324,267 (2,865,66101 (148,886) . 1 ,822M6 P,�. i,iil OTHER FINANCING SOURCES (USES) Operating transfers in 22,786 1 ,030 4,227,213 4,251 ,029 Operating transfers out (3,594,211 ) ( 634,032) ( 122,057). ( 15,729) ( 4,366,029) (3,571 ,425) ( 633,002) 4,105,156 ( 15,729) ( 115,000) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES AND OTHER USES 941 ,492 ( 308,735) 1 ,239,495 (164,615) 1 ,707,637 FUND BALANCE TRANSFER (NOTE 12) (3,125,115) 3,138,931 13,816 FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 8,307,362 1 ,013,313 482,263 6,072 9,809,010 FUND BALANCES, END OF YEAR $ 6,123,739 $ 704,578 $ 1 ,721 ,758 $ 3,138,931 $(158.543) $ 11 ,530,463. See accompanying notes to financial statements. Perry A. Carter, Certified Public Accountant -4- CITY OF DUBLIN COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL, SPECIAL REVENUE AND CAPITAL PROJECTS FUND TYPES Year Ended June 30, 1986 General Fund Special Revenue Fund Types Capital Project Fund Types Budget Actual Variance_ Budget Actual Variance Budget Actual Variance REVENUES Taxes $ 5,070,000 $ 5,062,103 $( 7,897)$ $ $ $ $ $ Licenses and permits 282,300 410,243 127,943 Intergovernmental 889,518 1 ,057,247 167,729 960,985 379,132 (581 ,853) Charges for services 470,950 682,324 211 ,374 Fines and forfeits 8,500 13,524 5,024 55,000 55,471 471 Use of money and property 1 ,020,900 956,215 ( 64,685) 37,500 84,236 46,736 Other revenue 29,199 24,147 ( 5,052) 67,300 184,321 117,021 379,220 173,316 ( 205,904) Sale of certicates of participation 7,771 ,367 8,205,803 434,436 1 ,120,785 703,160 (417,625) 379,220 173,316 ( 205,904 EXPENDITURES General government 578,255 542,616 35,639 Public safety 1 ,641 ,141 1 ,522,434 118,707 55,000 38,620 ( 16,380) Highways and streets 385,232 335,819 49,413 289,050 277,322 ( 11 ,728) Health and welfare 8,925 2,461 6,464 11 ,440 11 ,440 Community development 1 ,054,453 961 ,541 92,912 Culture and recreation 393,421 295,191 98,230 Capital outlay 35,647 32,824 2,823 50,000 51 ,511 1 ,511 6,562,296 3,038,977 3,523,319 4,097,074 3,692,886 404,188 405,490 378,893 26,597 6,562,296 3,038,977 3,523,319 REVENUES GREATER (LESS) THAN EXPENDITURES 3,674,293 4,512,917 8381624 715,295 324,2670 (391 ,028) (6,183,076) (2,865,661 ) 3,317;;415 OTHER FINANCING SOURCES (USES) Operating transfers in 22,786 22,786 1 ,030 1 ,030 5,946,188 4,227,213 (1 ,718,975) Operating transfers out (4,238,056) (3,594,211 ) 643,845 (1 ,594,162) ( 634,032) 960,130 ( 122,057) ( 122,057) (4,215,270) (3,571 ,425) 643,845 (1 ,593,132) ( 633,002) 960,130 5,824,131 4,105,,156. (1 ,718,975) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES AND OTHER USES ( 540,977) 941 ,492 1 ,482,469 ( 877,837) ( 308,735) 569,102 ( 358,945) 1 ,239,495 1 ,598,440 FUND BALANCE TRANSFER (3,125,115) (3,125,115) FUND BALANCES, BEGIN- NING OF YEAR (NOTE 11 ) 8,307,362 8,307,362 1 ,013,313 1 ,013,313 482,263 482,263 FUND BALANCES, END OF YEAR $ 4,641 ,270 $ 6,123,739 $ 1 ,482,469 $ =,=135,476 $ 704,578 $ 569,102 $ 123,318 $ 1 ,721 ,758 $ 1 ,598,440 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -5= I CITY OF DUBLIN COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES ALL PROPRIETARY FUND TYPES Year Ended June 30, 1986 REVENUES Use of money and property $ 450, 782 450, 782 EXPENSES OPERATING INCOME 450, 782 NONOPERATING REVENUES (EXPENSE) Operating transfer in 115 , 000 NET INCOME 565, 782 CONTRIBUTED CAPITAL 63, 309 FUND BALANCE TRANSFER (NOTE 12) ( 13, 816 ) FUND BALANCE, BEGINNING OF YEAR FUND BALANCE, END OF YEAR $ 615, 275 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -6- CITY OF DUBLIN COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES Year Ended June 30, 1986 SOURCES OF WORKING CAPITAL Net income $ 565, 782 Proceeds of certificates of participation 11, 968, 000 Contributed capital 63, 309 Fund balance transfer 25, 115 12, 622, 206 USES OF WORKING CAPITAL Increase in contruction, in-progress 6, 397 ,418 Transfer of fixed assets 63, 309 Fund balance transfer 38, 931 6, 499, 658 INCREASE IN WORKING CAPITAL $ 6, 122, 548 ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL Cash 6, 143 , 006 Accounts payable ( 20, 458 ) NET INCREASE IN WORKING CAPITAL $ 6, 122 , 548 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -7- _ CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1986 NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Dublin was incorporated February 1, 1982 under the Municipal Organization Act of 1977. The City operates under a r „ Council-Manager form of government and provides services to resi- dents primarily by contracting with other governmental agencies and private contractors . The accounting policies of the City of Dublin conform to generally accepted accounting principles as applicable to governments . The following is a summary of the more significant policies : A -- FUND ACCOUNTING The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities , fund equity, revenues , and expenditures, or expen- ses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending acti- vities are controlled. The funds required by the City of Dublin are grouped, in the financial statements . of this report, into six generic fund types and two account groups as follows : GOVERNMENTAL FUNDS General Fund - The general fund is the general operating fund of the City. It is used to account for all financial resouces except those required to be accounted for in another fund. Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes . Capital Projects Funds - Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital projects (other than those financed by proprietary funds, special assessment funds and special reve- nue funds) . Debt Service Funds - Debt service funds are established to account for the accumulation of resources for, and the payment of, interest and principal on long-term debt. Perry H. Carter, Certified Public Accountant -8- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1986 Special Assessment Funds - Special assessment funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. Proprietary Fund Internal Service Fund - Internal service funds are used to ac- count for operations where services are provided to other depart- ments on a cost reimbursement basis Fiduciary Fund Trust Deposit Fund - Trust deposit funds are used to account for assets held by the city as trustee to be expended or invested in accordance with the conditions c�f- the trust agreement. Account Groups - General fixed assets are recorded as expendi- tures in the General Fund, Special Revenue Funds, and the Capital Projects Funds at the time of purchase. Such assets are accounted for in the General Fixed Assets account group. General long-term debt expected to be financied from governmental funds is accounted for in the General Long-Term Debt Account Group. Depreciation is not provided for in the General Fixed Assets account group. All fixed assets are valued at historical cost. Donated assets are valued at their estimated fair market value at the date donated. The City has elected not to capitalize "improvements other than buildings" which would consist of nonenterprise expenditures relating to roads, bridges, curbs, gutters, streets, sidewalks , drainage systems, and lighting systems. An account group is not a fund. Consequently, it is concerned .with the measurement of financial position only and not the results of operations . B -- 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 measurements made, regardless of the measurement focus applied. Perry H. Carter, Certified Public Accountant -9- CITY OF .DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1986 All governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Their reve- nues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized under �- the modified accrual basis of accounting which is when the re- lated fund liability is incurred. An exception to this rule is interest and principal on long-term debt, which is recognized when due. Proprietary funds are accounted for on the accrual basis of accounting. C -- BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1 . Prior to June 30, the City Manager submits to the City Coun- cil a proposed operating budget for the fiscal year commencing the following July 1. The operating budget in- cludes proposed expenditures and the means of financing them. 2 . Public hearings are conducted to obtain taxpayer comments . 3 . Prior to July 1, the budget is legally enacted through pas- sage of a resolution. 4. The City Manager ...is authorized to transfer budgeted amounts up to $2, 500 within an activity, within any fund; however, any other budget transfer must be approved by the City Council. 5 . Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds . 6. Budgets for the general, special revenue, and capital pro- jects funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) . D -- INVESTMENTS Investments are stated at cost or amortized cost, which approxi- mates market. Perry H. Carter, Certified Public Accountant -10- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1986 E -- TOTAL COLUMNS ON COMBINED STATEMENT Total columns on the combined statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present finan- cial position, results of operations, or changes in financial position in conformity with generally accepted accounting princi- ples . Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. NOTE 2 -- DUE FROM OTHER GOVERNMENTS Amounts due from other governmerr�s at June 30, 1986 consist of the following: Special General Revenue Fund Fund Total Documentary transfer tax $ 5, 439 $ $ 5, 439 Fines and forfeitures 468 3, 636 4, 104 Animal license 1, 586 1, 586 Motor vehicle in-lieu tax 42, 619 42, 619 Cigarette tax 6, 941 6, 941 Sales tax 220, 313 220, 313 Federal aid 460, 498 460, 498 Other 10 5, 619 5, 629 Revenue Sharing 60, 087 60, 087 $ 337 , 463 $ 469, 753 $ 807 , 216 NOTE 3 -- SPECIAL ASSESSMENT BONDS PAYABLE The following is a schedule of the special assessment bonds of the City of Dublin. These bonds were issued in 1985/86. There were no payments of principal in 1985/86. Perry H. Carter, Certified Public Accountant -11- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1986 -. Interest Outstanding Maturities Date of Issue Rate* June 30, 1986 July 2, August 15 , 1985 6. 50 % $ 87, 869 1986 7 . 00 55, 000 1987 r, 7 . 50 55, 000 1988 8. 00 55, 000 1989 8. 25 55, 000 1990 8. 50 55, 000 1991 8. 75 55, 000 1992 9.00 55, 000 1993 9.00 55,000 1994 9. 25 55, 000 1995 9 . 50 55, 000 1996 9 . 75 220, 000 1997 through r 2000 857, 869 *Interest payable on January 2, 1986 and semiannually thereafter on July 2 and January 2 in each year. NOTE 4 -- CHANGES IN GENERAL FIXED ASSETS A summary of changes in general fixed assets follows : Balance Balance July 1 , June 30, 1985 Additions Transfers 1986 Land $ $ $ $ Equipment 153, 545 58, 269 87, 332 124, 482 Improvements 1 , 092 1 , 092 $ 154, 637 $ 58, 269 $ 88, 424 $ 124,482 NOTE 5 -- OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES Generally accepted accounting principles require disclosure, as part of the Combined Statements, of certain information concern- ing individual funds including: Summary disclosures of debt service requirements to maturity for all types of outstanding debt. This requirement is met by Note 3 and Note 8. Perry H. Carter, Certified Public Accountant -12- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1986 - Summary disclosures of changes in general fixed assets by major asset class. This requirement is met by Note 4. Individual fund interfund receivable and payable balances . Interfund balances at June 30, 1986 consist of the following: Interfund Interfund Receivable Payable General Fund $ 478, 845 $ Capital Projects Fund 18, 347 Federal Aid Urban Fund 460, 498 $ 478, 845 $ 478, 845 NOTE 6 -- MISCELLANEOUS REVENUES The schedule below sets out the detail of miscellaneous revenues for the year ended June 30, 1986: Revenues General Fund $ 24, 147 Special Revenue Fund: Park dedication fees and flood grant 184, 321 Capital Projects Fund: Reimbursements 173, 316 $ 381 , 784 NOTE 7 -- RETIREMENT COMMITMENTS Substantially all of the City' s employees are covered by the Public Employee ' s Retirement System (PERS) . PERS is a defined benefit, contributory retirement plan administered by the State of California. Total pension expense and the amount funded for the year ended June 30, 1986 was $33, 669. NOTE 8 -- CERTIFICATES OF PARTICIPATION Certain land owned by the City of Dublin is leased to the Dublin Information, Inc. , a nonprofit corporation organized under the General Nonprofit Corporation Law of the State of California. Perry H. Carter, Certified Public Accountant -13- CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1986 The corporation will lease back to the City the facilities which are to be constructed on the site. Dublin Information, Inc. will finance the facility construction through Certificates of Parti- cipation, which were issued in 1985/86. The lease term is from the commencement date, December 18, 1985 through February 1, 2010. Upon termination of the lease, title to the facilties will revert to the City. The Certificates of Participation are reported as debts of Dublin Information, Inc. which is reported as a proprietary fund type in the financial statements of the City. The terms of repayment are as follows: Date of issuance: 12/18/85 Interest due: 2/1 and 8/1 of each year. Principal Interest Principal Interest Year Amount Rate Year Amount Rate 1986 $ % . 1987 173 , 000 6. 75 1994 $ 280, 000 8. 60 % 1988 180, 000 7 . 25 1995 305, 000 8. 80 1989 195, 000 7 . 50 1996 335, 000 9 .00 1990 205, 000 7 . 75 1997 365, 000 9. 00 1991 225, 000 8. 00 1998 395,000 9.00 1992 240, 000 . 8. 20 1999 430, b00 9. 00 1993 260, 000 8.40 2010 8, 380, 000 9. 25 $ 11, 968, 000 NOTE 9 -- LITIGATION The City was involved in several lawsuits at June 30, 1986 . City Management estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial statements of the City. NOTE 10 -- CONTINGENT LIABILITIES The City participates in the General Revenue Sharing and other grant programs . These programs are subject to program compliance audits and/or financial audits by the grantor or their represen- tatives. Performance of such audits in the future may give rise to findings which will result in a liability on the part of the City. The City is of the opinion that any liability arising from a grantor ' s audit will be immaterial. Perry H. Carter, Certified Public Accountant -14- _ CITY OF DUBLIN NOTES TO FINANCIAL STATEMENTS June 30, 1986 NOTE 11 -- CHANGES IN FUND BALANCES, BEGINNING OF THE YEAR Special Capital General Revenue Projects BALANCES, BEGINNING OF THE YEAR $ -8, 317, 722 $ 1, 015, 313 . $ 434,942 Corrections - add (deduct) : Trust fund for refundable deposits 17, 399 Due to other funds ( 47, 320) Prepaid expenses ( 7, 139) Reserved for accrued vacation benefits 24, 700 Adjustment-Shannon lease 2, 000 ( 2, 000) Corrections to FAU Rehabili- tations - major arterials 47, 321 ADJUSTED BALANCES, BEGINNING OF THE YEAR $ 8, 307, 362 $ 1, 013 , 313 $ 482 , 263 NOTE 12 -- FUND BALANCE TRANSFER During 1985/86 fund balance transfers were made to establish a Debt Service Fund for the purpose of meeting debt servicing re- quirments . The amount was $3, 100, 000 from the General fund, and $38, 931 from Capital Projects. Also, $25, 115 was transfered from the General Fund to establish the Internal Service Fund. NOTE 13 -- REPORTING ENTITY Financial statements in this report include the. financial activi- ties of the City of Dublin, and a public assistance non-profit corporation, Dublin Information, Inc. This presentation is re- quired as the City exercises significant control over the corpo- ration. No other entities have been included or excluded from these financial statements. Perry H. Carter, Certified Public Accountant -15- r. COMBINING AND INDIVIDUAL FUND STATEMENTS �1 AND GENERAL FIXED ASSETS CITY OF DUBLIN GENERAL FUND June 30, 1986 The purpose of the General Fund is to account for resources traditionally associated with City Government, which are not required to be accounted for in another fund. Revenues and expenditures of the Federal Revenue Sharing Program are accounted for in this fund. C' C.>F i�- See accompanying notes to financial statements . Perry H. Carter, Certified Public Accountant -16- U CITY OF DUBLIN GENERAL FUND - BALANCE SHEET June 30, 1986 ASSETS Cash and investments $ 5, 310, 525 Receivables: Property taxes 12,063 Accounts 118, 597 Accrued interest 259, 397 Due from other governments 337, 463 Due from other funds 478, 845 Prepaid expenses 13 TOTAL ASSETS $ 6, 516 , 903 LIABILITIES AND FUND EQUITY r LIABILITIES Accounts payable $ 381 , 962 Accrued wages 11 , 202 393, 164 FUND EQUITY Fund balance : Reserved for street improvement 5, 669, 588 Reserved for authorized projects 29, 452 Reserved for facility acquisition 400, 000 Reserved for vacation benefits 24, 699 6, 123, 739 TOTAL LIABILITIES AND FUND EQUITY $ 6_, 516, 903 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -17- CITY OF DUBLIN - GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended June 30, 1986 REVENUE Taxes : Property tax $ 469, 513 $ Sales and use tax 4, 174, 107 Real property transfer tax 67, 326 Cable TV franchise tax 26, 192 Electric franchise tax 120,475 Gas franchise tax 37, 633 Transient occupancy tax 155, 574 Garbage franchise tax 11, 283 5, 062, 103 Licenses and permits : Building permits 400, 961 Encroachment fees 3, 249 Animal permits 6,033 410, 243 Intergovernmental: Trailer coach in-lieu tax 8, 820 Motor vehicle in-lieu tax 542, 080 Cigarette tax 106, 538 Off highway motor vehicle in-lieu tax 373 Homeowner ' s property tax relief 15, 178 Revenue sharing 252, 786 SB 30 allocation 131 ,472 1 , 057, 247 Charges for services : Zoning fees 79,879 Plan checking fees 513, 986 Special police fees 6, 967 Park and recreation fees 50, 493 Sales of maps and documents 5, 891 Other charges 25, 108 682, 324 Fines and forfeits 13, 524 Use of money and property: Interest 904,482 Rents and concessions 51, 733 956, 215 Miscellaneous 24, 147 TOTAL REVENUE 8, 205, 803 See accompanying notes to financial statements . Perry H. Carter, Certified Public Accountant -18- CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended June 30, 1986 EXPENDITURES General government: Personal services $ 179,090 $ Services and supplies 361, 315 Contract services 2, 211 542, 616 Public safety: Personal services 10, 116 Services and supplies 35, 997 Contract services 1,476, 321 1, 522,434 Highways and streets: Personal services 14,469 Services and supplies 8, 660 Contract services °' 312, 690 335, 819 Health and welfare vector control 2, 461 Community development: Personal services 182, 994 Services and supplies 778, 547 961, 541 Culture and leisure: Personal services 143, 508 Services and supplies 45, 257 Contract services 106,426 295, 191 Capital outlay 32, 824 TOTAL EXPENDITURES 3, 692 , 886 EXCESS OF REVENUES OVER EXPENDITURES 4, 512, 917 OTHER FINANCING SOURCES (USES) Operating transfers in 22, 786 Operating transfers out (3, 594, 211 ) (3 , 571 ,425 ) EXCESS OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES ) 941, 492 FUND BALANCE TRANSFER (NOTE 12) (3, 125, 115 ) FUND BALANCE, BEGINNING OF YEAR (NOTE 11) 8, 307, 362 FUND BALANCE, END OF YEAR $ 6, 123, 739 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -19- CITY OF DUBLIN SPECIAL REVENUE FUNDS June 30, 1986 Traffic Safety Fund - Resources of this fund are required to be used exclusively for official traffic control devices, maintenance thereof, equipment and supplies for traffic law en- (:' forcement and maintenance, improvement, or construction of public streets, bridges and culverts within the City. State Gasoline Tax Fund - Resources of this fund are required to be used primarily for the research, planning, construction, im- provement, maintenance and operation of public streets and high- ways, and for certain other transportation related activities . County Gasoline Tax Fund - Resources of this fund are required to be used primarily for the research, planning, construction, im- provement, maintenance and operation of public streets and high- ways, and for certain other transportation related activities . C . Federal Aid Urban Fund - Resources of this fund are required to be used for improvements or restoration of roads, streets, fringe parking, and public transportation facilities within the boundaries of the local agency. Transportation Fund - Resources of this fund are required to be used for providing paratransit services to Dublin residents . CDBG Fund - Community development block grants are accounted for in this fund. The resources of this fund are required to be used to meet program objectives which includes rehabilitation of existing housing, construction of public improvements, and the development of new affordable housing. Park Dedication Fund - Resources of this fund are required by State law to be used for the purpose of developing new or reha- bilitating existing park or recreational facilities to serve the ` . subdivision for which in-lieu fees were received. Disaster Assistance Fund - Resources of this fund is provided by the State for flood damage suffered by the City. See accompanying notes to financial statements . Perry H. Carter, Certified Public Accountant -20- J CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1986 Traffic Safety State Office of Transportation Fund Gasoline Tax Traffic Safety Fund ASSETS Cash and investments $ 516 $ 230,712 $ $ Due from other governments 3,636 4,105 TOTAL ASSETS $ =4152 $ 234,817 $ $ LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 578 $ 55,401 $ $ Due to other funds 578 55,401 FUND EQUITY Fund balance 3,574 Reserved for street improvements 179,416 TOTAL LIABILITIES AND FUND EQUITY $ 44152 $ 234.817 $ $ See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -21- ' CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1986 Disaster Federal Aid Park Assistance Urban Dedication Fund Highway Fund CDBG Fund Fund Total ASSETS Cash and investments $ $ $ $ 520,074 $ 751 ,302 .. Due from other governments 1 ,514 460,498 469,753 TOTAL ASSETS $ 1 ,514 $ 46.0,498 $ $ 520,074 $ 1 ,221,055 LIABILITIES AND FUND EQUITY a LIABILITIES Accounts payable $ $ $ $ $ 55,979 Due to other funds 460,498 460,498 460,498 516,477 FUND EQUITY Fund balance 1 ,514 520,074 525,162 Reserved for street improvements 179,416 TOTAL LIABILITIES AND FUND EQUITY $ 1 ,514 46_ 04941 $ $ 520,074 $ 1 ,221 ,055 i i i !i I I I i See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -22- CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 Traffic Safety State Office of Transportation Fund Gasoline Tax Traffic Safety Fund REVENUES Intergovernmental Traffic study grant $ $ $ 22,544 $ FAU grant Gasoline tax 260,953 TDA Act funds 11 ,440 Fines and forfeits Vehicle code fines 55,471 Use of money and property Interest 21 ,059 All other Park dedication fees flood grant 4,105 EXPENDITURES 55,471 286,117 22,544 11 ,440 Public safety Service and supplies 6,989 Contract services 31 ,631 Highways and streets Contract services 277,322 Capital outlay 51 ,511 Health and welfare Contract services 11 ,440 38,620 328,833 11 ,440 REVENUES IN EXCESS OF (LESS THAN) EXPENDITURES 16,851 ( 42,716) 22,544 OTHER FINANCING SOURCES (USES) Operating transfers in 1 ,030 Operating transfers out ( 22,544) REVENUES IN EXCESS OF (LESS THAN) EXPENDITURES AND OTHER FINANCING USES 16,851 ( 41 ,686) FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) (13,277) 221 ,102 FUND BALANCES, END OF YEAR $ 3,574 $ $ $ See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -23- CITY OF DUBLIN SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANrES IN FUND BAL%•!lCES Year Ended June 30, 1986 Disaster Federal Aid Park Assistance Urban Dedication Fund Highway Fund CDBG Fund Fund Total REVENUES Intergovernmental Traffic study grant $ $ $ $ $ 221544 FAU grant 84,195 84,195 j Gasoline tax 260,953 1 TDA Act funds 11 ,440 CDBG Grant funds Fines and forfeits 55,471 Vehicle code fines Use of money and property Interest 63,177 84,236 All other Park dedication fees and flood grant 2,544 177,672 184,321 5 2,544 84,195 240,849 703,160 EXPENDITURES Public safety Service and supplies 6,989 Contract services 31 ,631 Highways and streets Contract services 1� 277;322 51 ,511• Capital outlay I Health and welfare Contract services 11 ,440 378,893 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 2,544 84,195 240,849 324,267 ) ` OTHER FINANCING SOURCES (USES) Operating transfers in 1 ,030 Operating transfers out (1 ,030) (84,195) (30,000) (496,263) (634,032) REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES AND OTHER FINANCING USES 1 ,514 (30,000) (255,414) ( 308,735) FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 30,000 775,488 1 ,013,313 FUND BALANCES, END OF YEAR $ 1 ,514 $ $ $ 55220,E $ 704,578 E See accompanying notes to financial statements. ! Perry H. Carter, Certified Public Accountant 3 -24- i i CAPITAL PROJECTS FUNDS r - CITY .OF DUBLIN CAPITAL PROJECTS FUNDS June 30, 1986 r� Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities or projects . l . C See accompanying notes to financial statements . Perry H. Carter, Certified Public Accountant -25- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 Intersection Modification Street Name Traffic Signals City Base FAU Rehab. Dublin Blvd./ and Approach AVB/Stagecoach Map Major Arterials Dougherty Road Signs Road_ ASSETS Cash and investments $ 8,657 $ $ 19,327 $ 1 ,632 $ 12,176 TOTAL ASSETS $ Xxfila $ $ 19 X327 $ 1 632 $ 12, 176 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 8,657 $ $ $ $ Due to other funds TOTAL LIABILITIES 8,657 FUNDS BALANCES Reserved for authorized projects 19,327 1 ,632 12,176 TOTAL LIABILITIES AND FUND BALANCES $ 8"657 $ $ 19327 $ 1 .632, . Continued See accompanying notes to financial statements. Perry A. Carter, Certified Public Accountant -26- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 Street Improve- Sewage ments-Amador Facility City Entrance Street Tree Valley Boulevard Expansion Bus Shelters Signs Program ASSETS Cash and investments $ 8,490 $ 728,000 $ 29,088 $ 22,000 $ TOTAL ASSETS $ 8990 $ 728000 $ 29T088 $ 22,000 $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 8,490 $ $ $ $ Due to other funds TOTAL LIABILITIES 8,490 FUNDS BALANCES Reserved for authorized projects 728,000 29,088 22,000 TOTAL LIABILITIES AND FUND BALANCES $ 8 490 $ 728,000 $ 29,088 $ 22.000 Continued See accompanying notes to financial statements. Perry B. Carter, Certified Public Accountant -27- r CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 Village Park- Word Civic Center Defective way Landscape Annual Street Processing Proiect Sidewalk Repair and Sidewalk Overlay Program Equipment ASSETS Cash and investments $ 45,000 $ 252 $ 2,389 $ 19,107 $ 176 TOTAL ASSETS $ 4.5_,QQO $ 252 $ 2 X389 $ 1 9F 107 $ 17Q LIABILITIES AND FUND BALANCES .LIABILITIES Accounts payable $ $ 252 $ $ $ Due to other funds TOTAL LIABILITIES 252 FUNDS BALANCES Reserved for authorized projects 45,000 2,389 19,107 176 TOTAL LIABILITIES AND FUND BALANCES 45,000 $ 252 1� $ 2,389 $ 19,107 $ JU Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -28- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 OTS Traffic Downtown Dublin Downtown Study Improvement Boulevard Street Lighting Kolb Park Project Study Underground Additions Improvements ASSETS Cash and investments $ $ 46,085 $ 130,661 $ 247,247 $ 2,499 TOTAL ASSETS $ $ 41-,.,085 $ 130,_661 $ 247.247 $ 2,4499 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ 5,399 $ 42 $ $ 2,499 Due to other funds TOTAL LIABILITIES 5,399 42 2,499 FUNDS BALANCES Reserved for authorized projects 40,686 130,619 247,247 TOTAL LIABILITIES AND FUND BALANCES $ $ 46,085 $ 130.661 $ 247,247. $ 2.499 Continued See accompanying notes to financial statements. Perry A. Carter, Certified Public Accountant -29- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 San San Traffic Signal Traffic Signal Ramon Road Ramon Road Alcosta/San Traffic Signal Dublin/ Phase II Phase III Ramon Road Dublin/Sierra Dublin Court ASSETS Cash and investments $ 34,679 $ 16,974 $ 88,431 $ 80,772 $ TOTAL ASSETS $ 14_,_k7 9 $ 1 6_1-974 $ 8_ 8,43.1 $ 80.772 $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 18,103 $ 7,078 $ 29,942 $ 393 $ Due to other funds _ TOTAL LIABILITIES 18,103 7,078 29,942 393 FUNDS BALANCES Reserved for authorized projects 16,576 9,896 58,489 80,379 TOTAL LIABILITIES AND FUND BALANCES $ 2 § $ 166974 $ 88}431 $ 8�0 772 $ � I Continued See accompanying notes to financial statements. Perry A. Carter, Certified Public Accountant -30- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 Median Landscape Dublin/San Traffic Signal Traffic Signal Village Parkway Median Landscape Ramon Fire Dublin/Clark Interconnect to Kimball Major Arterials Services Study ASSETS Cash and investments $ $ 88,282 $ 163,744 $ $ TOTAL ASSETS $ $ 88282 $ 163,744 $ $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ 180 $ 163,744 $ $ Due to other funds TOTAL LIABILITIES 180 163,744 FUNDS BALANCES Reserved for authorized projects 88,102 TOTAL LIABILITIES AND FUND BALANCES $ $ $84282 Y� $ 163.744 $ $ � I Continued See accompanying notes to financial statements. Perry A. Carter, Certified Public Accountant -31- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 DSRSD Services City Dublin Boule- Arroyo Vista Study Copy Machine Storage Yard vard Extension Sidewalk ASSETS Cash and investments _ $ 6,400 $ 124 $ 1 ,781 $ 5,833 $ TOTAL ASSETS $ 64400 $ 1.24 $ 1781 $ 5,833 $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ 1 ,781 $ 3,227 $ Due to other funds 14,176 TOTAL LIABILITIES 1 ,781 3,227 14,176 FUNDS BALANCES Reserved for authorized projects 6,400 124 2,606 (14,176) TOTAL LIABILITIES AND FUND BALANCES $ 6,400 $ 124 $ 1,7781 $ 5.833 $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -32- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 Landscape- Dublin Boule- Dougherty Amador Valley Traffic Signal Traffic Signal vard West of Road Widening Blvd./Dougherty Amador Valley/ Village Park- San Ramon Road at Railroad Village Parkway Amador Plaza way/Lewis ASSETS Cash and investments $ 16,868 $ 596 $ 902 $ 11 ,137 $ 3,780 TOTAL ASSETS $ 1_6868 $ _596 $ 902 $ 11 ,137 $ 34780 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 6,700 $ 694 $ $ 1 ,749 $ 1 ,480 Due to other funds 4,170 TOTAL LIABILITIES 6,700 4,864 1 ,749 1 ,480 FUNDS BALANCES Reserved for authorized projects 10,168 (4,268) 902 9,388 2,300 TOTAL LIABILITIES AND FUND BALANCES $ X66_8 $ 596 )� $ 9k2 $ 11 ,137 $ 3,780 ' I Continued See accompanying notes to financial statements. Perry A. Carter, Certified Public Accountant -33- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 San Ramon Rd. Improvements Park Develop- Shannon Park Shannon Center ments-Phase IV ment Plan Play Area Kitchen ASSETS Cash and investments $ 19,165 $ 12,800 $ $ TOTAL ASSETS $ 19,165 $ 12800 $ $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 91189 $ $ $ Due to other funds TOTAL LIABILITIES 9,189 FUNDS BALANCES Reserved for authorized projects 9,976 12,800 TOTAL LIABILITIES AND FUND BALANCES $ 19,165 $ 12,_800 $ $ Concluded See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -34- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 Traffic Signal Median Break- Amador Valley/ Village Park- Silvergate/ Handicapped San Ramon Road way Hall Silvertree Curb Ramps Dolan Park ASSETS Cash and investments $ 70,883 $ 2,840 $ 1 ,187 $ $ TOTAL ASSETS $ 70_,883 $ 2 840 $ 1,187 $ $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ $ $ Due to other funds TOTAL LIABILITIES FUNDS BALANCES Reserved for authorized projects 70,883 2,840 1 ,187 TOTAL LIABILITIES AND FUND BALANCES $ 70,883 $ 2,84.0 $ 1 ,187 $ $ See accompanying notes to financial statement. Perry H. Carter, Certified Public Accountant -35- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 Street Name Sign Replace- Amador Lakes Police ment Program Mini Park Vehicle Total ASSETS Cash and investments $ 621 $ 34,118 $ 25,000 $ 2,009,703 TOTAL ASSETS $ X21 $ 34 118 $ 25,000 $ 2 IQ9,.703 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ $ $ $ 269,599 Due to other funds 18,346 TOTAL LIABILITIES 287,945 FUNDS BALANCES Reserved for authorized projects 621 34,118 25,000 1 ,721 ,758 TOTAL LIABILITIES AND FUND BALANCES $ $ 34,,118 $ 25,000 $ 2.0099,703 I See accompanying notes to financial statement. Perry H. Carter, Certified Public Accountant -36- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES V,:�ar Ended June 30, 1986 Intersection Modification Street Name Traffic Signals City Base FAU Rehab. Dublin Blvd./ and Approach AVB/Stagecoach Map Major Arterials Dougherty Road Signs Road REVENUES Sale of certificates of participation $ $ $ $ $ Interest income Other revenue (reimbursement) TOTAL REVENUE EXPENDITURES General government: Contractual services 20,046 1 ,966 3,153 4,275 Capital projects: Construction in progress 3,063 45,313 Land, equipment and other facilities TOTAL EXPENDITURES 20,046 1 ,966 3,063 3,153 49,588 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES lI , I OTHER FINANCING SOURCES (USES) Operating transfers in 15,208 86,195 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES ( 4,838) 84,229 ( 3,063) (3,153) (49,588) FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR (NOTE 11 ) 4,838 (84,229) 22,390 4,785 61 ,764 FUND BALANCES, END OF YEAR $ $ $ 19,33227 $ 1 .632 $ ]2.176 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -37- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 Street Improve- Sewage ments-Amador Facility City Entrance Street Tree Valley Boulevard Expansion Bus Shelters Signs Program REVENUES Sale of certificates of participation $ $ $ $ $ Interest income Other revenue (reimbursement) TOTAL REVENUE EXPENDITURES General government: Contractual services 55,874 1 ,631 Capital projects: Construction in progress 51 ,659 Land, equipment and other facilities TOTAL EXPENDITURES 55,874 53,290 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES OTHER FINANCING SOURCES (USES) I Operating transfers in 50,490 728,000 2,000 22,109 21 ,691 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES ( 5,384) 728,000 2,000 22,109 (31 ,599) FUND BALANCE TRANSFER FUND BALANCES BEGINNING OF YEAR 5,384 27,088 ( 109) 31 ,599 FUND BALANCES, END OF YEAR $ $ Z28A000 $ 29,088 $ 22.000 $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -38- _ 1 CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 Village Park- Word Civic Center Defective way Landscape Annual Street Processing Project Sidewalk Repair and Sidewalk Overlay Program Equipment REVENUES Sale of certificates of participation $ $ $ $ $ Interest income Other revenue (reimbursement) TOTAL REVENUE EXPENDITURES General government: Contractual services 16,760 1 ,611 8,266 Capital projects: Construction in progress 11 ,834 2,000 132,627 Land, equipment and other facilities 15,824 TOTAL EXPENDITURES 28,594 3,611 140,893 15,824 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES OTHER FINANCING SOURCES (USES) I Operating transfers in 160,000 23,267 15,475 160,000 16,600 Operating transfers out (115,000) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES 45,000 ( 5,327) 11 ,864 19,107 176 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR 5,327 ( 9,475) FUND BALANCES, END OF YEAR $ 45,000 $ $ 2.389 $ 19,107 $ 176 Continued See accompanying notes to financial statements. Perry A. Carter, Certified Public Accountant -39- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 OTS Traffic Downtown Dublin Downtown Study Improvement Boulevard Street Lighting Kolb Park Project Study Underground Additions Improvements REVENUES Sale of certificates of participation $ $ $ $ $ Interest income Other revenue (reimbursement) TOTAL REVENUE EXPENDITURES General government: Contractual services 11 ,028 57,814 11 ,767 2,791 2,500 Capital projects: Construction in progress 262,614 24,962 Land, equipment and other facilities TOTAL EXPENDITURES 11 ,028 57,814 274,381 27,753 2,500 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES OTHER FINANCING SOURCES Operating transfers in 27,992 98,500 405,000 242,504 2,500 Operating transfers out ( 5,448) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES 11 ,516 40,686 130,619 214,751 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR (11 ,516) 32,496 FUND BALANCES, END OF YEAR $ $ $ 130,619 $ 247,242 $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -40- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YeAr Ended June 30, 1986 San San Traffic Signal Traffic Signal Ramon Road Ramon Road Alcosta/San Traffic Signal Dublin/ Phase II Phase III Ramon Road Dublin/Sierra Dublin Court REVENUES Sale of certificates of participation $ $ $ $ $ Interest income Other revenue (reimbursement) 63,602 31 ,000 TOTAL REVENUE 63,602 31 ,000 EXPENDITURES General government: Contractual services 61 ,724 31 ,545 55,310 40,612 583 Capital projects: Construction in progress 291 ,701 93,612 Land, equipment and other facilities TOTAL EXPENDITURES 61 ,724 31 ,545 347,011 40,612 94,195 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 1 ,878 (31 ,545) (347,011 ) ( 9,612) (94,195) I OTHER FINANCING SOURCES (USES) Operating transfers in 35,048 368,557 85,000 38,408 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES 1 ,878 3,503 21 ,546 75,388 (55,787) FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR 14,698 6,393 36,943 4,991 55,787 FUND BALANCES, END OF YEAR $ 76 $ 9,896 $ 558,4489 $ 80,379 $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -41- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 Median Landscape Dublin/San Traffic Signal Traffic Signal Village Parkway Median Landscape Ramon Fire Dublin/Clark Interconnect to Kimball Major Arterials Services Study REVENUES Sale of certificates of participation $ $ $ $ $ Interest income Other revenue (reimbursement) TOTAL REVENUE EXPENDITURES General government: Contractual services 1 ,587 1 ,898 46,040 6,232 9,161 Capital projects: Construction in progress 71 ,123 486,101 273,863 Land, equipment and other facilities TOTAL EXPENDITURES 72,710 1 ,898 532,141 280,095 9,161 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (72,710) ( 1 ,898) 9� (532,141 ) (280,095) (9,161 ) OTHER FINANCING SOURCES (USES) Operating transfers in 36,648 90,000 532,995 109,874 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES (36,062) 88,102 854 (170,221 ) (9,161 ) FUND BALANCES, BEGINNING OF YEAR 36,062 ( 854) 170,221 9,161 FUND BALANCES, END OF YEAR $ $ 88002 $ $ $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -42- CITY OF DUBLIN ' CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 DSRSD Services City Dublin Boule- Arroyo Vista Study Copy Machine Storage Yard vard Extension Sidewalk REVENUES Sale of certificates of participation $ $ $ $ $ Interest income Other revenue (reimbursement) 23,714 TOTAL REVENUE 23,714 EXPENDITURES General government: Contractual services 50,214 21 ,169 12,394 12,988 Capital projects: Construction in progress 99,420 1 ,188 Land, equipment and other facilities 11 ,876 TOTAL EXPENDITURES 50,214 11 ,876 120,589 12,394 14,176 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (26,500) (11 ,876) (120,589) (12,394) (14,176) OTHER FINANCING SOURCES (USES) Operating transfers in 20,900 12,000), 120,589 15,000 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES ( 5,600) 124 2,606 (14,176) FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR 12,000 FUND BALANCES, END OF YEAR $ 6,4400 $ 1224, $ $ 2.606 $( ) Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -43- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 Landscape- Dublin Boule- Dougherty Amador Valley Traffic Signal Traffic Signal vard West of Road Widening Blvd./Dougherty Amador Valley/ Village Park- San Ramon Road at Railroad Village Parkway Amador Plaza way/Lewis REVENUES Sale of certificates of participation $ $ $ $ $ Interest income Other revenue (reimbursement) 30,000 TOTAL REVENUE 30,000 EXPENDITURES General government: Contractual services 19,832 4,268 19,098 8,612 7,700 Capital projects: Construction in progress Land, equipment and other facilities TOTAL EXPENDITURES 19,832. 4,268 19,098 8,612 7,700 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES 10,168 (4,268) ) (19,098) ( 8,612). (7,700) OTHER FINANCING SOURCES (USES) Operating transfers in 20,000 18,000 10,000 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS (LESS) THAN OF EXPENDITURES 10,168 (4,268) 902 9,388 2,300 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR FUND BALANCES, END OF YEAR $ 10,168 $(4,268) $ 902 $ 9.388 $ 2,300 Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -44- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMB.I.NING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 San Ramon Rd. Improvements Park Develop- Shannon Park Shannon Center ments-Phase IV ment Plan Play Area Kitchen REVENUES Sale of certificates of participation $ $ $ $ Interest income Other revenue (reimbursement) TOTAL REVENUE EXPENDITURES General government: Contractual services 60,024 27,200 1 ,600 Capital projects: Construction in progress Land, equipment and other facilities TOTAL EXPENDITURES 60,024 27,200 1 ,600 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES OTHER FINANCING SOURCES (USES) 1I Operating transfers in 70,000 40,000 1 ,600 Operating transfers out REVENUES AND OTHER FINANCING SOURCES IN EXCESS (LESS) THAN OF EXPENDITURES 9,976 12,800 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR FUND BALANCES, END OF YEAR $ 9,276 $ 12 $06 Continued See accompanying notes to financial statements. Perry R. Carter, Certified Public Accountant -45- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 Traffic Signal Median Break- Amador Valley/ Village Park- Silvergate/ Handicapped San Ramon Road way Hall Silvertree Curb Ramps Dolan Park REVENUES Sale of certificates of participation $ $ $ $ $ Interest income Other revenue (reimbursement) TOTAL REVENUE EXPENDITURES General government: Contractual services Capital projects: Construction in progress Land, equipment and other facilities 454,663 TOTAL EXPENDITURES 454,663 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES (454,663) OTHER FINANCING SOURCES (USES) 9� Operating transfers in 30,000 454,663 Operating transfers out ( 1 ,609) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES 28,391 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR 70,883 2,840 1 ,187 (28,391 ) FUND BALANCES, END OF YEAR $ 70,,883 $ 2,8840 $ 1 ,187 $ $ Continued See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -46- CITY OF DUBLIN CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 Street Name Sign Replace- Amador Lakes Police ment Program Mini Park Vehicle Total REVENUES Sale of certificates of participation $ $ $ $ Interest income Other revenue (reimbursement) 25,000 173,316 TOTAL REVENUE 25,000 173,316 EXPENDITURES General government: Contractual services 379 5,882 705,534 Capital projects: Construction in progress 1 ,851 ,080 Land, equipment and other facilities 482,363 TOTAL EXPENDITURES 379 5,882 3,038,977 REVENUES IN EXCESS OF (LESS) THAN EXPENDITURES ( 379) ( 5,882) 25,000 (2,865,661 ) OTHER FINANCING SOURCES (USES) 11 Operating transfers in 1 ,000 40,000 4,227,213 Operating transfers out ( 122,057) REVENUES AND OTHER FINANCING SOURCES IN EXCESS OF (LESS) THAN EXPENDITURES 621 34,118 25,000 1 ;239,495 FUND BALANCE TRANSFER FUND BALANCES, BEGINNING OF YEAR 482,263 FUND BALANCES, END OF YEAR $ 621, $ 34,11Q $ 25.000 $ 1 .721 .758 Concluded See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -47- SPECIAL ASSESSMENT FUNDS CITY OF DUBLIN SPECIAL ASSESSMENT FUNDS June 30, 1986 Special assessment funds are used to account for the financing of public improvements or services 'deemed to benefit the properties against which special assessments are levied. Perry H. Carter, Certified Public Accountant -48- CITY OF DUBLIN SPECIAL ASSESSMENT FUNDS COMBINING BALANCE SHEET Year Ended June 30, 1986 Street Lighting Landscape San Ramon Road Assessment District Assessment District Specific Plan Assess- 83-1 83-2 ment District Fund Total ASSETS Cash and investments $ 37,637 $ 55,268 $ 516,714 $ 609,619 Receivables: Special assessments Current 1 ,314 94 124,442 125,850 Deferred 577,331 577,33' 1 ,314 94 701 ,773 703,181 TOTAL ASSETS $ 38"951 $ 5 :� 2 $ 1 ,218,487 $ 1 ,312,808 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 10,132 $ 22,886 $ $ 33,018 Deposits 3,125 3,125 Deferred revenues 577,331 577,331 Bonds payable 857,869 857,869 10,132 11 22,886 1 ,438,325 1 ,471 ,343 FUND EQUITY Fund balance 28,819 32,476 ( 21.9,838) ( 158,543) TOTAL LIABILITIES AND FUND EQUITY $ 38,951 $ 55_=9,362 $ 1 ,218,487 $ 1 ,312,800 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -49- CITY OF DUBLIN SPECIAL ASSESSMENT FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES Year Ended June 30, 1986 Street Lighting Landscape San Ramon Road Assessment District Assessment District Specific Plan Assess- 83-1 83-2 ment District Fund Total REVENUES Special assessment $ 124,650 $ 30,810 $ 280,538 $ 435,998 Use of money and property Interest 4,212 3,159 63,212 70,583 128,862 33,969 343,750 506,581 EXPENDITURES Public safety Service and supplies 115,193 115,193 Highways and streets Contract services 22,304 22,304 Capital outlay 5,352 512,618 517,970 115,193 27,656 512,618 655,467 REVENUES IN EXCESS OF (LESS THAN) EXPENDITURES 13,669 116,313 (168,868) (148,886) OTHER FINANCING SOURCES (USES) t Operating transfer in Operating transfer out ( 15,729) ( 15,729) REVENUES AND OTHER FINANCING SOURCES IN EXCESS (LESS) THAN EXPENDITURES AND OTHER USES 13,669 6,313 (184,597) (164,615) FUND BALANCES, BEGINNING OF YEAR 15,150 26,163 ( 35,241 ) 6,072 FUND BALANCES, END OF YEAR $ 28,819 $ 32,.476 $(219,838) $(158,543) See accompanying notes to financial statements. Perry A. Carter, Certified Public Accountant -50- PROPRIETARY FUND TYPES CITY OF DUBLIN PROPRIETARY FUND TYPES June 30, 1986 INTERNAL SERVICE FUNDS Equipment Replacement Fund - To provide for the accumulation of resources to replace equipment, as funded by interdepartmental fees . Dublin Information, Inc. - This fund is used to account for the activity of Dublin Information, Inc. , a non-profit public ser- vices corporation. The corporation was created for the purpose of building a public facilities project, which will then be leased to the City of Dublin. The lease income derived from the City will be used to repay Certificates of Participation, . which were issued by the corporation to fund the construction of the project. The City exercises oversight responsibility with re- spect to the corporation, consequently the financial activity of the corporation is reported in the financial statements of the City. See accompanying notes to financial statements . Perry H. Carter, Certified Public Accountant -51- t CITY OF DUBLIN COMBINING BALANCE SHEET PROPRIETARY FUND TYPES June 30, 1986 Dublin Equipment Information Replacement Inc. Total ASSETS Cash and investments $ 25, 115 $ 6, 117,891 $ 6, 143 , 006 Land, machinery and equipment net of accumulated depre- ciation, machinery and equipment of $25, 115 63 , 309 63 , 309 Construction in progress 6 , 397 , 418 6, 397 ,418 $.-88,424 $ 12, 515, 309 $ 12 , 603 , 733 LIABILITIES AND FUND BALANCES Accounts payables $ $ 20, 548 $ 20,458 Certificates of par- ticipation 11 , 968, 000 11, 968, 000 11, 986, 458 11 , 988, 458 Contributed capital 63, 309 63, 309 Fund balances 25 , 115 526, 851 551 , 966 88,424 526, 551 615 , 275 $ 88, 424 $ 12 , 515 , 309 $ 12 , 603 , 733 See accompanying notes to financial statements . Perry H. Carter, Certified Public Accountant -52- CITY OF DUBLIN - COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES PROPRIETARY FUND TYPES Year Ended June 30, 1986 Dublin Equipment Information Replacement Inc. Total REVENUES Interest income $ $ 450, 782 $ 450, 782 450, 782 450, 782 EXPENSES OPERATING INCOME 450, 782 450, 782 NONOPERATING REVENUE (EXPENSE) Operating transfer in 115, 000 115, 000 NET INCOME 565, 782 565, 782 CONTRIBUTED CAPITAL 63, 309 63 , 309 FUND BALANCE TRANSFER (NOTE 12 ) 25, 115 ( 38, 931 ) ( 13 , 816 ) FUND BALANCE AT BEGINNING OF PERIOD FUND BALANCE AT END OF PERIOD $ 88,424 $ 526, 851 $ 615 , 275 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -53- i CITY OF DUBLIN COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION PROPRIETARY FUND TYPES Year Ended June 30, 1986 Dublin Equipment Information Replacement Inc. Total SOURCES OF WORKING CAPITAL Net income $ $ 565, 782 $ 565, 782 Proceeds of certificates of participation 11, 968, 000 11, 968, 000 Contributed capital 63, 309 63, 309 Fund balance transfer 25, 115 25, 115 88, 424 12, 533, 782 12, 622, 206 USES OF WORKING CAPITAL Increase in contruction, in-progress 6, 397 , 418 6, 397, 418 Transfer of fixed assets 63, 309 63, 309 Fund balance transfer 38, 931 38, 931 63, 309 6,436, 349 6,499, 658 INCREASE IN WORKING CAPITAL $ 25, 115 $ 6,097,433 $ 6, 122, 548 ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL Cash 25, 115 6, 117, 891 6, 143 , 006 Accounts payable ( 20, 548) ( 20, 548 ) NET INCREASE IN WORKING CAPITAL $ 25, 115 $ 6, 097, 343 $ 6, 122 , 456 See accompanying notes to financial statements . Perry H. Carter, Certified Public Accountant -54- GENERAL FIXED ASSETS r CITY OF DUBLIN GENERAL FIXED ASSETS June 30, 1986 The purpose of the General Fixed Assets group of accounts is to account for fixed assets not used in proprietary fund operations or accounted for in Trust Funds . See accompanying notes to financial statements . Perry H. Carter, Certified Public Accountant -55- l - M � CITY OF DUBLIN SCHEDULE OF GENERAL FIXED ASSETS BY SOURCES June 30, 1986 GENERAL FIXED ASSETS Machinery and equipment $. 124,482 $ 124,482 INVESTMENT IN GENERAL FIXED ASSETS General fund purchases $ 124, 282 Gifts 200 $ 124,482 See accompanying notes to financial statements. Perry H. Carter, Certified Public Accountant -56- 1 CITY OF DUBLIN MANAGEMENT LETTER JUNE 30 1986 Perry H. Carter, Certified Public Accountant 1 t PERRY H. CARTER, C.P.A. CERTIFIED PUBLIC ACCOUNTANT 24326 MISSION BOULEVARD SUITE 4 HAYWARD,CALIFORNIA 94541 (415) 537-1835 November 14, 1986 Honorable Mayor, Members of the City Council , and City Manager City of Dublin, California I have examined the financial statements of the City of Dublin for the year ended June 30, 1986 and have issued my report thereon dated October 9, 1986 . As part of my examination, I made a study and evaluation of the City ' s system of internal accounting control to the extent I considered necessary to evaluate the system as required by gener- ally accepted auditing standards. Under these standards, the purposes of such an evaluation are to establish a basis for reliance on the system of internal accounting control in deter- mining the nature, timing, and extent of other auditing proce- dures that are necessary for expressing an opinion on the finan- cial statements and to assist the auditor in planning and per- forming his examination of the financial statements. The objective of internal accounting control is to provide reasonable, but not absolute, assurance as to the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial state- ments and maintaining accountability for assets . The concept of reasonable assurance recognizes that the cost of a system of internal accounting control should not exceed the benefits de- rived and also recognizes that the evaluation of these factors necessarily requires estimates and judgments by management. There are inherent limitations that should be recognized in considering the potential effectiveness of any system of internal accounting control. In the performance of most control proce- dures, errors can result from misunderstanding of instructions, mistakes of judgment., carelessness, or other personal factors . Control procedures whose effectiveness depend upon segregation of duties can be circumvented by collusion. Similarly, control procedures can be circumvented intentionally by management either with respect to the execution and recording of transactions or with respect to the judgments required in the preparation of financial statements. Further, projection of any evaluation of internal accounting control to future periods is subject to the risk that the pro- cedures may become inadequate because of changes in conditions City of Dublin November 15, 1986 Perry H. Carter Page 2 and that the degree of compliance with the procedures may deter- iorate . My examination of the financial statements was made in accordance with generally accepted auditing standards, including the study and evaluation of the system of internal accounting control for the year ended June 30, 1986. The examination, which was made for the purposes set forth above, would not necessarily disclose all weaknesses in the system because it was based on selective tests of accounting records and related data. However, such evaluation disclosed the following conditions that I believe to be weaknesses, excluding those which were corrected before they came to my attention. In addition, I have included my recommenda- tions for improving the accounting system. These conditions were considered in determining the nature, timing, and extent of audit tests to be applied in my examination of the financial statements, and this report of such conditions does not modify my report dated October 9, 1986, on such finan- cial statements. My recommendations with respect to the City' s system of internal control is discussed below, and includes the status of the prior year ' s recommendations, along with the current year ' s recommenda- tions. CURRENT YEAR RECOMMENDATIONS 1 -- COMPUTER STUDY The City currently uses a one-write manually-posted general led- ger system, with financial reports being generated on a computer. As the City continues to grow, and its reporting becomes more complex, the current system will become increasingly cumbersome to maintain. I recommend that the City prepare a study to determine if the City' s financial operations should be computerized, and if so, to which extent. 2 -- REVIEW OF INTERNAL CONTROL The City has recently employed its first Finance Director. One of the duties of a Finance Director is to moniter the system of internal accounting controls to determine its proper functioning and I am sure that the City' s new Finance Director will address this area. However, due to the importance of proper controls, I would like to emphasize this function by recommending that a comprehensive review of the City' s system of internal accounting controls be one of the Finance Director ' s early projects . City of Dublin November 14, 1986 Perry H. Carter Page 3 3 -- DUBLIN INFORMATION, INC. The nonprofit corporation, Dublin Information, Inc. has and will continue to have certain administrative requirements. For exam- ple, filing of tax returns, maintenance of minutes, etc. Also, as there have been fairly recent changes in the law regarding nonprofit corporations, it is important that these changes be understood and properly applied. Consequently, I recommend that the City give priority to these considerations . PRIOR YEAR RECOMMENDATIONS The following is a summary of the status of the prior year ' s recommendations: 1 . Staffing recommendation - implemented. 2. Computer study - repeated as current year recommendation. 3 . Cash receipts system - superceded by current year recommenda- tion. 4. Approval of adjusting journal entries - superceded by Finance Director ' s position 5 . Investment control - function is now assigned to Finance Director. 6 . Record safekeeping - implemented. I wish to thank the City Manager and his staff for their coopera- tion during the course of the audit. Should you wish to discuss any of the comments I have made, I will be happy to meet with you at your convenience. Sincerely, PERRY H. CARTER