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Home My WebLink About1986-1987.AuditReportREPORT ON INTERNAL ACCOUNTING CONTROL AND MEMORANDUM OF ADVISORY COMMENTS ' CITY OF CAPE GIRARDEAU, MISSOURI June. 30, 1987 E111111 IN USEE GIRARDEiAU, MISSOURI ST. LOCI -MISSOURI KANSAS CRY. MISSOURI SPRINGFIELD. ILLINOIS MILWAUKEE, WISCONSIN WASHINGTON. DC. KERBER,ECK & BRAECKEL CF RTIPIED PUBLIC ACCOUNTANTS 1221 BROADWAY CAPE GIRARDE.AU, MISSOURI W701 Honorable Mayor, Members of the City Council and City Manager City of Cape Girardeau, Missouri MEMBERSAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 31 -UFF0SGA We have examined the financial statements of the City of Cape Girardeau, Missouri for the year ended June 30, 1987, and have issued our report thereon dated September 24, 1987. As a part of our examination, we made a study and evaluation of the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. The purpose of our study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the City's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole. The management of the City of Cape Girardeau, Missouri is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control ., procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and 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 accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. 2 + Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all materialweaknesses in the system. Accordingly, we do not express an opinion on the system of + internal accounting control of the City of Cape Girardeau, Missouri, taken as a whole. However, our study and evaluation disclosed the conditions set out at pages 4 to 7 of this report that we believe. result In more than a + relatively low risk that errors or irregularities in amounts that would be material.. in relation to the financial statements of the City of Cape Girardeau, Missouri, may occur and not be detected within a timely period. Other comments and observations which came to our attention during our examination are set out at pages 8 to 9 of this report. These conditions were considered in determining the nature, timing and + extent of the audit tests to be applied in our examination of Sure 30, 1987 financial statements and this report does not affect our report on these financial statements dated September 24, 1987. + We appreciate the courtesies and assistance provided our personnel during the course of the audit. If further information or clarificationis needed in reference to any of our comments and recommendations or if you + need assistance in implementing any of the foregoing, please feel free to call us at any time. ��-- Cape. Girardeau, Missouri September 24, 1987 0 N 3 COMMENTS ON INTERVAL ACCOUNTING CONTROL ' CASH RECEIPTS Daily cash listings Formal daily cash listings are not made by the person opening the mail. + It is recommended thatthe person opening the mail prepare a daily cash receipt listing for comparison to subsequent bank deposits. It is probably impractical to prepare a listing for all utility ' receipts but a listing of other miscellaneous receipts should be prepared, Utility receipts are posted as they are opened. Allocation of interest income Interest income earned by the City on its checking account is allo- cared to the various City funds on the basis of the total amount + of cash shown on the balance sheet at the end of each month. This amount includes both cash in the checking account and other cash each fund has. Interest earned on these funds is allocated only to accounts with a positive balance in the checking account. Funds with a deficit cash position effectively reduces interest earned by funds having positive cash balances. + We recommend interest income be allocated to funds with positive balances and interest expense be charged to funds having a. deficit cash position. This will clearly reflect activity of funds during the ' period, Miscellaneous receipts We observed that many large miscellaneous receipts had no supporting document, other than the miscellaneous receipt prepared by city employees. + We recommend that for larger miscellaneous receipts, a. copy of the check, bill of sale or remittance advice be maintained with the miscellaneous receipt„ PAYROLL Approval of payroll " During our examination, itwas noted that the payrolls are not formally approved prior to disbursement, + We recommended that payrolls be. approved by a responsible official before they are disbursed. 0 ■ PAYROLL - Continued Reconciliation o£ pagroll Our examination disclosed that the payroll per the payroll journal is not being reconciled to the payroll amounts reported the payroll tax returns of the City. We recommend that payroll be reconciled to the payroll tax returns of the City on a quarterly basis. Timeliness o£ Fajyro11 report submission It was noted that Federal payroll tax returns for three quarters had not been filed in a timely manner. We recommend that, all payroll tax returns of the City be filed on a timely basis. We understand that this problem has been corrected. JOURNAL ENTRIES Posting of iaurnaL entries Postings of adjusting journal entries are not always traced to the general ledger after they are made. Some journal entries were made to the wrong accounts. We recommend that all journal entries be traced to the general ledger accounts to make sure they are correctly posted. TAXES RECEIVABLE Write-off of sewer taxes During our examination of sewer tax receivables, we noted that receivables were adjusted without formal approval. .. We recommend that the City have a responsible official approve the write-off of all sewer tax receivables. We understand that this situation is being corrected. Personal property real estate and sewer taxes It was noted that delinquent taxes did not reconcile to the receiv- able balance shown by the City. We recommend that delinquent taxes be reconciled to the outstand- ing receivable balance on a monthly basis. Since the City converted. to the accrual basis, this should be done monthly in the reconcilia. tion of the account receivable general ledger balance to the account receivable subsidiary ledgers. M r INVESTMENTS Purchase of securities ' During our examination, it was notedthat there is no written author- ization for the purchase of Treasury bills by the City. Although verbal authorization Is given for the purchase of Treasury bills, since they are so large and purchased infrequently, we recommend the use of a written authorization signed by a responsible City official. ACCOUNTS PAYABLE Detailed accounts payable schedules a Our examination of the accounts payable disclosed that the detail schedule of accounts payable did not agree to the individual fund amounts of accounts payable shown on the year-end balance. This is a result of the manner in which the City's computerized payable system is designed. .. We recommend that the City determine if it is possible to have the accounts payable system adapted so that individual. funds accounts payable can be reconciled to the detail schedules. GRANT FUNDING REQUESTS Timeliness of submission It was noted that several funding requests of the City's grant pro- grams had not been submitted in a timely manner at the end of the year. Thus, the City was forced to use its own funds which could have been invested or used for other purposes until the requests were filed. We recommend that funding requests be filed in as timely a manner as poss Lble in order to promote a good rash flow. 7 OTHER COMMENTS AND OBSERVATIONS OTHER COMMENTS AND OBSERVATIONS PrapertY,taxes During our examination, it was noted that the property tax receivable increased $30,000 or approximately 508. We recommendthat the City investigate this difference to determine the appropriate actions to be taken. Leaae payments It was noted that one payment on a lease/purchase obligation had been .. recorded improperly by the bank on their loan payment request, and had therefore been recorded wrong by the City. We recommend that all lease/purchase payments be traced to the amorti- zation schedules provided by the banks to make sure all payments are properly recorded, 9 Memo No.: ACCOUNTING 99/07./04.1 TQ; AL STOVERINIF GUbject: ?997 =PUDIT MPNAGEMENT LETTER ASRTSTANT CITV MANAE='', From: JOHN RICHBOURG COMPTROLLER ., KE9 RECOMMENDATT9N '-r r RESPONSE P'pn RErnMME D -TI n^.. i _. .. .:_H RECOMMENDATION RESPONSE ACCOUNTING SS/03/04.1 PACE 2 .. KED RECOMMENDATION L., .f,L L RESPONSE - _ f c,its nl nc r. v,j t I I e_- r..iil:d , I 1T wii. L •i. i=inc �a, a� t_ tra _. _ui L V L ii LL :.:I I1 n.-+vl� 1111 ! t. i. ro c; t :11 �::;.I. '..I 1. ,1 d1 'a! ur1.-I[I vii. �'r :::F 'roi.k acn JI .111 L d _]L11 i -'EF RECOMMENDATION- �... . I RESPONSE b. ! _ KED RECOMMENDATION .I 1. RESPONSE -, -_:gin ,Ii YAi +u -. h, LF:Fi 1im_i uraras 4"',; ,-.r�. Lr_` th-. ¢:L IA I1 1 :✓m t 'n PI1 'd -n a l III 1 KEE RECOMMENDATION till - 1 'LI, ACCOUNTING RO/OT/04.1 PAGE 8 RESPONRF ,:::� �. ., ,1' _. _ J 1 I ,. - _ L t • -. Ir 1 . �— 1rL1 Fnl 1 i1 1 ti ,.i t-, .p VEA RECOMMENDATION ",. i. 1 I .. 1 orf S1 RESPONSE 1 ••1hl= ire 1 31, of e .:, IT r IT _. rle. lulu . lr�nrr 1'� .1 f• hti: i r rl n! ;i li r^fl f i1 ' IT _. `Il 1 SL ht r� '[ 1 i ?T U 1 .h - Pl vt, t 1 1 31-1 i�. K:ER RECOMMENDATION 11I 11,,:Il I I 1111''i III's "Ji 'ihicIl ht u 1 "cR RECOM E`!DATION i',,t I,. i. 11-t RESPONSE I• , �f 1 _z LCT, :i. k'ER RECOMMENDATION ::: i L 1 . I. "� _.. sL, i�r"r- r, ;• :, rl J... . ✓9 1: r.IT, RESPONSE - }"r, iildi 1:I)u!- tI Y �i i-h«= �. ;.-..I i.�:,r- i.i 11 I•. r- iI., _.a th= l.• Jls �LCII,-r1-n I;. �1 1 • �r"ds ,oi hlv - ase a. nc� I'-cl- .. I_ v - +r� is Y p':.c .I. C YL, 71! r.' F,l I '¢ c ji, r.ni.l. � L ._,. tED RECOMMENDATION il.l � r 1 i ' ,11I' 11' - ACCOUNTING 88/0/04.1 PAGE 4 KEB ADVISORY COMMENTS t I e L _ I I I_ +r:..,<<r a rI LI I it I-. i. F I Rc 'nhJSE - rY �1 �.:,•ri -i -- i I - I .-n� I ;,.:. t RESPONSE - L FINANCIAL STATEMENTS AND AUDITORS' REPORT CITY OF CAPE GIRARDEAU, MISSOURI June 30, 1987 C O N T E N T S Pae. AUDITORS' REPORT G FINANCIAL STATEMENTS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS B COMBINED STATEMENT OF REVENUES AND EXPENDITURES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS 10 COMBINED STATEMENT OF CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES 1.1 COMBINED STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES 12 ., COMBINED STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL - DEBT SERVICE AND CAPITAL PROJECTS FUND TYPES 13 COMBINED STATEMENT OF REVENUES AND EXPENDITURES - " BUDGET (GAAP BASIS) AND ACTUAL - SPECIAL ASSESSMENT FUND TYPES 14 COMBINED STATEMENT OF REVENUES AND EXPENSES - .. ALL PROPRIETARY FUND TYPES 15 COMBINED STATEMENT OF CHANGES IN RETAINED EARNINGS - .. ALL PROPRIETARY FUND TYPES 16 COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - "" ALL PROPRIETARY FUND TYPES 17 NOTES TO FINANCIAL STATEMENTS 19 GENERAL FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 30 SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET 31 COMBINING STATEMENT OF REVENUES AND EXPENDITURES 32 COMBINING STATEMENT OF CHANGES IN FUND BALANCE 33 2 C O N T E N T S Pate SPECIAL REVENUE FUNDS - Continued CONVENTION/TOURISM SPECIAL REVENUE FUND - STATE- MENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 34 FEDERAL SHARED REVENUE SPECIAL REVENUE FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 35 DOWNTOWN BUSINESS DISTRICT SPECIAL REVENUE FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 36 PARKS AND RECREATION SPECIAL REVENUE FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 37 HEALTH SPECIAL REVENUE FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 38 MOTOR FUEL TAX SPECIAL REVENUE FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 39 DEBT SERVICE FUNDS 1984 PUBLIC BUILDING BONDS FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 40 CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET 41 COMBINING STATEMENT OF REVENUES AND EXPENDITURES 42 COMBINING STATEMENT OF CHANGES IN FUND BALANCE 43 MULTI-USE CENTER CONSTRUCTION FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 44 FAU STREET GRANTS FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 45 COMMUNITY DEVELOPMENT BLOCK GRANT FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 46 3 C O N T E N T S Page CAPITAL PROJECTS FUNDS - Continued PARK GRANTS FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 47 PARK IMPROVEMENTS FUND - STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 48 SPECIAL ASSESSMENTS - STREET FUND BALANCE SHEET 49 STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL 50 COMBINING STATEMENT OF CHANGES IN FUND BALANCE 51 ENTERPRISE FUNDS COMBINING BALANCE SHEET 52 COMBINING STATEMENT OF REVENUES AND EXPENSES 53 COMBINING STATEMENT OF CHANGES IN RETAINED EARNINGS 54 INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET 55 COMBINING STATEMENT OF REVENUES AND EXPENSES 56 COMBINING STATEMENT OF CHANGES IN RETAINED EARNINGS 57 TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET 58 COMBINING STATEMENT OF REVENUES AND EXPENDITURES 59 SUPPLEMENTAL INFORMATION REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS 61 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN EXAMINATION OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH THE STANDARDS FOR AUDIT ISSUED BY THE GAO 63 4 C O N T E N T S Paee SUPPLEMENTAL INFORMATION - Continued REPORT ON STATEMENT OF FEDERAL FINANCIAL ASSISTANCE 64 STATEMENT OF FEDERAL FINANCIAL ASSISTANCE 65 REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 67 REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT 69 STATEMENT OF INSURANCE COVERAGE 72 5 Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri and the combining, individual fund and account group financial statements of the City as of and for the year ended June 30, 1987, as listed in the table of contents. Our examination was made in accordance with generally accepted governmental auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As described in note A2, the City has kept its records and has prepared its financial statements for previous years on the cash basis, with no recognition having been accorded accounts receivable, accounts payable, or accrued expenses. At the beginning of the current year, the City adopted the accrual basis of accounting. Although appropriate adjustments have been made to fund balances as of the beginning of the year, it was not practicable to restate the financial statements of the preceding year to conform with the accounting principles used in the current year. As described in note A3, the general purpose financial statements referred to above do not include the General Fixed Asset Account Group, which should be included to conform with generally accepted accounting principles. The amount that should be recorded in the general fixed assets account group is not known. In our opinion, except for the general fixed account group on which we are unable to express an opinion, the general purpose financial statements referred to above present fairly the financial position of the City of Cape Girardeau, Missouri, at June 30, 1987, and the results of its operations and the 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 preceding year. Also, in our opinion, the combining, individual fund, and account group financial statements referred to above present fairly the financial position of each of the individual funds and account groups of the City of Cape Girardeau, Missouri, at June 30, 1987, and the results of operations of such funds and the changes in financial position of individual proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. KERBER,ECK & BRAECKEL CERTIFIED PUBLIC ACCOUNTANTS 1221 BROADWAY OFFICES IN CAPE GIRARDEAU, MISSOURI 63001 MEMBERSAMERICAN CAPE GIRARDEAU. MISSOURI INSTITUTE OF CERTIFIED ST. LOUIS. MISSOURI PUBLIC ACCOUNTANTS KANSAS CITY. MISSOURI SPRINGFIELD. ILLINOIS 31LT.6 S8 MILWAUKEE. WISCONSIN WASHINGTON, D C. Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri and the combining, individual fund and account group financial statements of the City as of and for the year ended June 30, 1987, as listed in the table of contents. Our examination was made in accordance with generally accepted governmental auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As described in note A2, the City has kept its records and has prepared its financial statements for previous years on the cash basis, with no recognition having been accorded accounts receivable, accounts payable, or accrued expenses. At the beginning of the current year, the City adopted the accrual basis of accounting. Although appropriate adjustments have been made to fund balances as of the beginning of the year, it was not practicable to restate the financial statements of the preceding year to conform with the accounting principles used in the current year. As described in note A3, the general purpose financial statements referred to above do not include the General Fixed Asset Account Group, which should be included to conform with generally accepted accounting principles. The amount that should be recorded in the general fixed assets account group is not known. In our opinion, except for the general fixed account group on which we are unable to express an opinion, the general purpose financial statements referred to above present fairly the financial position of the City of Cape Girardeau, Missouri, at June 30, 1987, and the results of its operations and the 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 preceding year. Also, in our opinion, the combining, individual fund, and account group financial statements referred to above present fairly the financial position of each of the individual funds and account groups of the City of Cape Girardeau, Missouri, at June 30, 1987, and the results of operations of such funds and the changes in financial position of individual proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining, individual fund, and individual account group financial statements. The accompanying financial information listed as supporting schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the City of Cape Girardeau, Missouri. Such information has been subjected to the auditing procedures applied in the examination of the general purpose, combining, individual fund, and individual account group financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account groups, taken as a whole. Cape Girardeau, Missouri September 24, 1987 7 d-CQI1GV=sir-- Accannt Groun General Total$ Long-Tera (Memorandum ASSETS Debt - -C-Iv)-"an and investments $ _ $ 3,612,946 Receivables, net of allowances for doubtfuL receivables Personal ptoperry, real estate, and merchants taxes (note B) _ 886,150 Sales tax _ 470,904 Hotel, motel, restaurant tax _ 44,942 Motor vehicle sales tax _ 12,452 motor fuel tax _ 74,368 Motor vehicle License fees _ 29,964 special assessments _ 111,957 Utility charges receivable _ 275,681 Grants receivable _ 294,600 Interest - 93,691 Other receivable _ 72,691 Restricted cash and investments _ 464,022 Fixed assets, net of accumnnlated depreciation (note C) _ 14,856,311 Prepaid insurance - 42,177 Amount available in Debt Service Fund 379,805 379,805 Amount to be provided for retire- ment of general long-term debt 4,810,359 4,810,359 Total Assets $5,190,164 $26,533,020 + Account Gr... General Totals Long -Term (Memorandum + LIABILITIES Debt Only) Accounts payable $ - $ 566,533 Accrued Liabilities + Payroll taxes and fringe benefits - 228,091 Due to other governments - 174 Leasetpurchase obligations payable (n, 410,164 775,202 Revenue bonds payable (nate D) - 1,375,000 General obligation bonds payable (note 4,780,000 4,780,000 Interest payable - 44,716 + Total Liabilities 5,190,164 7,769,716 Fund equity Retained earnings + Reserved - 335,060 Unreserved - 13,498,485 Fund balance Reserved - 508,767 + Unreserved - --------- 4,420,992 ---------- 18,763,304 Total Liabilities and + Fund Equity $5,190,164 $26,533,020 The accompanying nates are an integral I 1 i 1 1 1 1 1 Y 1 1 1 f 1 f 1 1 i 1 City 0£ Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES AND EXPENDITURES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS Year ended June 30. 1987 The accompanying notes are an integral pare of this ao Cement. 10 Fiduciary GovernmentalFund TYPe9 Fund Types Totals special Debt Capital Special Eryendable tlemorandum General Reven Service P1.1ec As ae ssm I.., Only) REVENUES Taxes and s,erlal as as.cnt. $ 6,553,54] $ 620,148 $ 211,858 $ - $ - $292,]68 $ ],6]8,321 Licenses anp¢tmtta5e 45],810 - - - - - 45],810 Fines and forfeitures 330,026 - - - - 9,823 339,849 Interest 120,552 104,828 5,282 143,456 22,940 17,424 414,482 Fees and s rvice charges 255,]34 89,085 - - - 8,431 353,250 Incergove rnmencal 90,825 675,798 7,709 903,232 - 25,193 1,902,]5] MlsceLlanepua 158,083 - - - - 81,989 240,072 Loan proceed. (note E) 410,164 - - - - - 410,164 8,376,741 1,689,859 224,849 1,046,688 22,940 435,628 11,]96,]05 EXF END ITURES General government 1,485,183 159,997 - - - 328,295 1,9]3,4]5 Public aa£ety 4,112,155 - - - - - 4,112,155 High ... and streets 1,409,2425,534 - - - - 1,414,]76 Health - 102,049 - - - - 102,049 Culture and recreation 56,990 946,974 - - - - 1,003,964 Cap i[a1 p..Jecrs - - - 4,294,515 - - 4,294,515 Oebc rvice Principal retirement - - 115,000 - 173,000 - 288,000 Interest and fiscal charges - - 498,532 - 11,803 - 510,335 ],063,570 1,214,554 613,532 4,294,515 184,603 328,295 13,699,269 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,313,171 475,305 (388,683) (3,247,827) (161,863) 107,333 (1,902,564) OTHER FINANCING SOURCES (USES) Operating transfer. In 560,000 986,916 ]65,]14 435,158 175,000 - 2,922,788 Operating transfers out (1,953,580) (1,9]0,89]) (18,289) (345,714) - - (4,288,480) (1,393,580) (9831961) ]4],425 89,444 175,000 - (1,365,692) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (80,409) $ (508,676) $ 358,742 $(3,158,383) $ 13,137 $107,333 $(3,268,256) The accompanying notes are an integral pare of this ao Cement. 10 The accompanying notes are an Integral parr of this statement, 11 City of Cape Girardeau, Ml .sora rl COMeSNED STATEMENT OF CHANGES IN FUND BALANCES - ALLGOVERNMENTAL FOND TYPES Year ended June 30, 1987 Governmental Fund Types Totals Special Debt Capital Special (Memorandum General Revenue Service Proiects Assessment Only) Fundbalance at beginning of ye at - cash basis $1,747,150 $1,421,937 $ 18,922 $ 4,576,700 S 64,948 $ 7,029,657 Adjustment to c etc no .n.—.L baslao(.six A3) 1,214,360 70,634 2,141 (197,770) 175,289 1,264,654 Fund balance at beginning of year - accrual basis 2,961,510 1,492,571 21,063 4,378,930 240,237 9,094,311 Reclassify type of fund 37,838 (21,310) - - (16,528) - Contribution to sewer fund - - - (1,107,976) - (1,107,976) Excess (deficiency)of revenues and other financing sources and Cther flexpenditures —In, uses (80,409) (500,676) 358,742 (3,158,383) 13,137 (3,375,589) Fund balance at end of year $2,918,939 $ 962,585 $379,805 $ 112,571 $236,846 $ 4,610,746 The accompanying notes are an Integral parr of this statement, 11 I 1 i 1 1 i 1 i 1 1 1 1 1 i i i i 1 i City o£ Cape Gi ardea M"sou- CONN s COMBINED STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTOAL - GENERAL AND SPECIAL REVENUE FUND TYPES Tear ended June 30. 1987 The accompanying nates are an integral part of this statement. 12 Cenerat Fund Special Revenue Fund Types Variance - Varian - Favorable Favorable 8odaet ACtual (Unfavorable) Rudest ActuaL (Unfavorable) REVENUES Tessa $ 6,655,378 $ 6,553,547 $(101,831) $ 603,117 $ 620,148 $ 17,031 Llcenaea and pa -its 472,300 457,811 (14,491) - - - Fines and forfeitures 342,000 330,026 (11,974) - - - 1.1-st 85,688 120,552 34,864 62,759 104,828 42,069 Fees and aa rvice charges 259,000 255,734 (3,266) 90,800 89,085 (1,715) Intergovernmental 89,161 90,825 1,664 836,105 875,798 39,693 Mtacellvieaus 155,763 158,083 2,320 - - - Loan proceeds - 410,164 410,164 - - - 8,059,290 8,376,741 317,451 1,592,781 1,689,859 97,078 EXPENDITURES General government 1,457,730 1,485,183 (27,453) 140,080 159,997 (19,917) Public safety 4,112,834 4,112,155 679 - - - HSghva, and streets 1,422,368 1,409,242 13,126 5,534 5,534 - Health - - - 107,925 102,049 5,876 Culture and recreation 63,012 56,990 6,022 978,230 946,974 31,256 7,055,944 7,063,570 (7,626) 1,231,769 1,214,554 17,215 EXCESS OF REVENUES OVER EXPENDITURES 1,003,346 1,313,171 309,825 361,012 475,305 114,293 OTHER FINANCING SOURCES (USES) OpevtLne transfers in 560,000 560,000 - 986,916 986,916 - Operatlne transfers ouC (1,543,416) (1,953,580) (410,164) (1,962,358) (1,970,897) (6,539) (903,416) (1,393,580) (410,164) (975,442) (983,981) (8,539) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 19,930 $ (80,409) $(100,339) $ (614,430) $ (508,676) $105,754 The accompanying nates are an integral part of this statement. 12 i f i f 1 1 i 1 I i i 1 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES ANO EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL - DEBT SERVICE AND CAPITAL PROJECTS FUND TYPES Year ended June 30, 1981 Debt Service Fund Types Capital Projects Fund Types Variance - Variance - Pay orahis Favorable Budge Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES Taxes and special assessments $ 201,546 $ 211,858 $ 10,312 $ - $ - $ - Interest 3,422 5,282 1,860 181,000 143,456 (37,544) Intergovernmental - 7,709 ),)09 940,581 903,232 (37,349) 204,96B 224,849 19,881 1,121,581 1,046,688 (74,893) EXPENDITURES Capital -J-1. - - - 4,574,731 4,294,515 280,216 Debt se rvloe Principal retirement 115,000 115,000 - - - - Interest and fiscal charges 602,810 498,532 104,278 - - - 717,810 613,532 304,278 4,574,731 4,294,515 280,216 DEFICIENCY OF REVENUES OVER EXPENDITURES (512,842) (388,683) 124,159 (3,453,150) (3,247,827) 205,323 OTHER FINANCING SOURCES (USES) Operating transfers in 765,714 765,714 - 408,330 435,158 26,828 Operating transfers out - (18,289) (181289) (345,714) (345,714) - 765,714 747,425 (18,289) 62,616 89,444 26,828 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 252,872 $ 358,742 $105,870 $(3,390,534) $(3,158,383) $232,151 The accompanying notes are an integral part of this statement. 19 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL - SPECIAL ASSESSMENT FUND TYPES Year ended June 30, 1987 Special Assessment Fund Twes Variance - Favorable Budset Actual (Unfavorable) REVENUES Taxes and special assessments $ 55,035 $ - $(55,035) Interest 21,000 -------- 22,940 1,940 76,035 -------- 22,940 ------- (53,095) EXPENDITURES Principal 173,000 173,000 - Interest 16,000 11,803 4,197 -------- 189,000 -------- -------- 184,803 -------- ------ 4,197 --.---- DEFICIENCY OF REVENUES OVER EXPENDITURES (112,965) (161,863) (48,898) OTHER FINANCING SOURCES Operating transfers in 175,000 175,000 - -------- -------- ------- EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES $ 62,035 $ 13,137 $(48,898) The accompanying notes are an integral part of this statement. 14 The accompanying notes are an integral part of this statement. 15 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES AND EXPENSES - ALL PROPRIETARY FUND TYPES Year ended June 30, 1987 Proprietary Fund Types Totals Internal (Memorandum Enterprise Service Onlv) OPERATING REVENUES Charges for services $2,414,118 $1,173,941 $3,588,059 Rents 84,113 - 84,113 Concession and equipment sales 55,415 - 55,415 Interest 47,225 19,738 66,963 Sale of property - 81 81 Miscellaneous 6,703 14,154 20,857 Intergovernmental 660,669 - 660,669 3,268,243 1,207,914 4,476,157 OPERATING EXPENSES Personal services 1,158,044 281,621 1,439,665 General operations 556,354 328,381 884,735 Contractual services 859,297 485,628 1,344,925 Capital outlay 18,447 656,226 674,673 Projects 7,841 - 7,841 Depreciation 589,199 61,558 650,757 --------- 3,189,182 --------- 1,813,414 --------- 5,002,596 .� --------- --------- --------- 79,061 (605,500) (526,439) NONOPERATING EXPENSES Interest 127,140 - 127,140 Handling charges 671 - 671 --------- 127,811 --------- --------- - --------- --------- 127,811 --------- OPERATING LOSS BEFORE OTHER FINANCING SOURCES (USES) (48,750) (605,500) (654,250) OTHER FINANCING SOURCES (USES) Operating transfers in 562,028 900,414 1,462,442 Operating transfers out (96,750) --------- - (96,750) 465,278 --------- --------- 900,414 --------- --------- 1,365,692 --------- NET INCOME $ 416,528 $ 294,914 $ 711,442 The accompanying notes are an integral part of this statement. 15 The accompanying notes are an integral part of this statement. 16 City of Cape Girardeau, Missouri COMBINED STATEMENT OF CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FONDS TYPES Year ended June 30, 1987 Proprietary Fund Tvpes Totals Internal (Memorandum Enterprise Service Only) Retained earnings at beginning of year - cash basis $ 267,669 $ 249,248 $ 516,917 Adjustments to convert to accrual basis (note A2) (1,563,684) (67,022) (1,630,706) Adjustment to record fixed assets (note A3) 12,476,953 650,963 ---------- --------- 13,127,916 ---------- Retained earnings at beginning of year - accrual basis 11,180,938 833,189 12,014,127 Contribution from Capital Projects Fund 1,107,976 - 1,107,976 Net income 416,528 294,914 ---------- --------- 711,442 ---------- Retained earnings at end of year $12,705,442 $1,128,103 $13,833,545 The accompanying notes are an integral part of this statement. 16 City of Cape Girardeau, Missouri COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION + ALL PROPRIETARY FUNDS TYPES Year ended June 30, 1987 Proorietary Fund Types Totals Internal (Memorandum Enterprise Service Only) Sources of working capital Operations Net income $ 416,528 $294,914 $ 711,442 Add back items not requiring working capital - depreciation 589,199 61,558 650,757 + ---------- ------- --------- Working capital provided by operations 1,005,727 356,472 1,362,199 Net increase in lease purchase obligations payable 272,281 - 272,281 Total sources of working ---------- ------- --------- capital 1,278,008 356,472 1,634,480 Uses of working capital Acquisition of fixed assets 2,198,044 108,529 2,306,573 Decrease in long-term revenue + bonds payable 25,000 - 25,000 Net decrease in lease purchase obligations payable 43,902 - 43,902 Net increase in restricted assets 142,072 ---------- 192,988 ------- 335,060 --------- Total uses of working capital 2,409,018 ---------- 301,517 ------- 2,710,535 --------- Net increase (decrease) in working capital $(1,131,010) $ 54,955 $(1,076,055) 17 The accompanying notes are an integral part of this statement. 18 City of Cape Girardeau, Missouri COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - + ALL PROPRIETARY FONDS TYPES - CONTINUED Year ended June 30, 1987 Proprietary Fund Types Totals Internal (Memorandum Enterprise Service Only) Elements of net increase (decrease) in working capital Cash and investments $(1,287,760) $(20,747) $(1,308,507) Receivables 219,590 5,199 224,789 Prepaid expenses 1,982 40,195 42,177 + Accounts payable (49,530) 32,972 (16,558) Accrued expenses (9,366) (2,664) (12,030) Interest payable (5,926) - (5,926) Net increase (decrease) ---------- ------- ---------- in working capital $(1,131,010) $ 54,955 $(1,076,055) The accompanying notes are an integral part of this statement. 18 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30. 1987 NOTE A - SUMMARY OF ACCOUNTING POLICIES The City of Cape Girardeau, Missouri operates under a charter which went into effect April 12, 1982. The City operates under a Council -Manager form of government and provides the following services as authorized by its charter: public safety (police and fire), highways and streets, sanitation, health and social services, culture -recreation, public improvements, planning and zoning and general administrative services. A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. 1. 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 spending activities are controlled. The various funds are grouped, in the financial statements in this report, into fund categories 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 resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service 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. Capital Project Funds - Capital Project 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 Proprietary Funds, Special Assessment Funds and Trust Funds). r Special Assessment Funds - Special Assessment Funds are used to account for the financing of public improvement or services deemed to benefit the properties against which special assessments are levied. 19 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1987 NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 1. Fund Accountin¢ - Continued PROPRIETARY FUNDS Enterprise 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) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues collected, expenses paid, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to other depart- ments of the City, on a cost -reimbursement basis. FIDUCIARY FUNDS Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organization, other governments, and/or other funds. Agency Funds are custodial in nature and do not involve measurement of results of operations. The City of Cape Girardeau has Agency Funds set up .. for the City's library and the flood protection program. 2. Change in Accounting Methods Prior to July 1, 1986, the City's policy was to prepare its financial state- ments on the basis of cash receipts and disbursements. The City also maintained its accounting records on a single-entry basis and did not maintain fixed assets and long-term debt group of accounts. Effective July 1, 1986, the City converted to the modified accrual basis of accounting for all governmental funds and the accrual basis of accounting for all proprietary funds. The City also started maintaining fixed asset and long-term debt group of accounts (note A3 and A4). 3. 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 .� liabilities 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 20 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1987 + NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 3. Fixed Assets and Lone -term Liabilities - Continued 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. The City of Cape Girardeau presently maintains detailed property records only + for proprietary fund types. Detailed property records are not maintained for all other funds of the City of Cape Girardeau. Expenditures for general fixed assets are charged to expenditures when made for these funds. All fixed assets are valued at 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 expected to be financed from governmental funds are accounted for in the General Long-term Debt Account Group, not in the governmental funds. The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of + results of operations. Noncurrent portions of long-term receivables due to governmental funds are + reported on their balance sheets, in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not + represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables is deferred until they become current receivables. Noncurrent portions of long-term loans receivable are offset by fund balance reserve accounts. 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. All Proprietary Funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities + (whether current or noncurrent) associated with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. + Proprietary Fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. 21 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1987 NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 3. Fixed Assets and Long-term Liabilities - Continued 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 estimated useful lives using the straight-line method. The estimated useful lives are as follows. Buildings 25-50 years Improvements 10-40 years Equipment 3-10 years 4. 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. All governmental funds are accounted for by using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Taxpayer -assessed income, gross receipts and sales taxes are considered "measurable" when in the hands of intermediary collecting governments and are recognized as revenue at that time. Anticipated refunds of such taxes are recorded as liabilities and reductions of revenue when they are measurable and their validity seems certain. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which is recognized when due. All Proprietary Funds are accounted for by using the accrual basis of accounting. Their revenues are recognized when they are earned and their expenses are recognized when they are incurred. Unbilled Solid waste and Sewerage system utility service receivables are recorded at year end. 5. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in the financial statements. 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 22 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1987 NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 5. Budgets and Budgetary Accounting - Continued 3. Prior to July 1, the budget is legally enacted through passage of an ordinance. 4. The City Manager is authorized to transfer budgeted amounts between programs within any department, however, any revisions that alter the total expenditures of any department must be approved by the City Council. 5. Formal budgetary integration is employed as a management control device during the year for all funds. 6. Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Individual budget amendments made throughout the year were not material in relation to the total original appropriations which were amended. 6. Total Columns on Combined Statements - Overview Total columns on the Combined Statements - Overview are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present results of operations in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 23 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30. 1987 24 NOTE B - PROPERTY TAXES Property taxes attach as an enforceable lien on property. Taxes were levied on August 21, 1986, for collection during this fiscal year. The City bills and collects its own property taxes. The tax rates assessed at the time were as follows. + City Revenue $.30/100.00 assessed valuation Library Tax .14/100.00 assessed valuation Public Health Tax .04/100.00 assessed valuation Special Business District #2 + (advalorem tax) .85/100.00 assessed valuation Debt Service Tax .10/100.00 assessed valuation Reserve for doubtful property taxes at June 30, 1987, was $5,600. + NOTE C - CHANGES IN GENERAL FIXED ASSETS A summary of proprietary fund type property, plant and equipment at June 30, 1987 follows: Enterprise Internal Service + Land $ 435,320 $ 37,500 Buildings 8,893,990 337,500 Improvements other .. than buildings 10,226,788 - Equipment 1,090,003 548,274 Construction in progress 185,886 - 20,831,987 923,274 Less accumulated depreciation 6,746,189 ---------- 152,761 ------- $14,085,798 $770,513 24 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30. 1987 NOTE D - LONG-TERM OBLIGATIONS Interest Principal Interest The following is a summary of bond transactions of the City for the year ended June 30, 1987. Total 1988 General Obli- Revenue $ 120,000 $ 483,660 gation Bonds Bonds Total Bonds payable at 130,000 468,660 598,660 July 1, 1986 $4,895,000 $1,400,000 $6,295,000 Bonds retired 115,000 25,000 140,000 Bonds payable at --------- --------- --------- June 30, 1987 $4,780,000 $1,375,000 $6,155,000 Bonds payable at June 30, 1987, are comprised of the following individual issues. $4,780,000 1984 Public Building serial bonds due as follows. Year ending Interest Principal Interest June 30, Rate Due Due Total 1988 12.00% $ 120,000 $ 483,660 $ 603,660 1989 12.00 130,000 468,660 598,660 1990 12.00 140,000 452,460 592,460 1991 12.00 150,000 435,060 585,060 1992 12.00 160,000 416,460 576,460 1993 12.00 175,000 396,360 571,360 1994 9.25 190,000 377,073 567,073 1995 9.00 205,000 359,060 564,060 1996 9.20 225,000 339,485 564,485 1997 9.40 245,000 317,620 562,620 1998 9.60 265,000 293,385 558,385 1999 9.80 290,000 266,455 556,455 2000 10.00 320,000 236,245 556,245 2001 10.00 350,000 202,745 552,745 2002 10.10 385,000 165,802 550,802 2003 10.20 430,000 124,430 554,430 2004 10.25 475,000 78,156 553,156 2005 10.25 525,000 26,906 551,906 --------- $4,780,000 --------- $5,440,022 ---------- $10,220,022 Principal payments are made on November 1, and interest payments are made semi-annually on May 1, and November 1. 25 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1987 9 NOTE D - LONG-TERM OBLIGATIONS - Continued $1,375,000 1986 Sewerage System Revenue Bonds due as follows. Year ending Interest Principal Interest June 30, Rate Due Due Total 1988 9.008 $ 25,000 $ 109,548 $ 134,548 1989 9.00 30,000 107,298 137,298 1990 9.00 30,000 104,597 134,597 1991 9.00 35,000 101,897 136,897 " 1992 8.50 40,000 98,748 138,748 1993 8.50 45,000 95,347 140,347 1994 8.50 50,000 91,523 141,523 1995 7.50 50,000 87,272 137,272 1996 7.50 60,000 83,523 143,523 1997 7.50 65,000 79,022 144,022 1998 7.50 70,000 74,148 144,148 1999 7.60 75,000 68,897 143,897 2000 7.70 85,000 63,198 148,198 2001 7.75 95,000 56,652 151,652 2002 7.80 100,000 49,290 149,290 2003 7.90 110,000 41,490 151,490 2004 8.00 125,000 32,800 157,800 2005 8.00 135,000 22,800 157,800 2006 8.00 150,000 12,000 162,000 --------- $1,375,000 --------- $1,380,050 --------- $2,755,050 Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1, and September 1. 9 M City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED .� June 30, 1987 27 NOTE D - LONG-TERM OBLIGATIONS - Continued The annual requirements to amortize all debt outstanding as of June 30, 1987, including interest payments of $6,820,072 are as follows. i General Year ending Obligation Revenue June 30, Bonds Bands Total. ti 1988 $ 603,660 $ 134,548 $ 738,208 1989 598,660 137,298 735,958 1990 592,460 134,597 727,057 1991 585,060 136,897 721,957 1992 576,460 138,748 715,208 1993 571,360 140,347 721,707 1994 567,073 141,523 708,596 1995 564,060 137,272 701,332 1996 564,485 143,523 708,008 1997 562,620 144,022 706,642 1998 558,385 144,148 702,533 1999 556,455 143,897 700,352 2000 556,245 148,198 704,443 2001 552,745 151,652 704,397 2002 550,802 149,290 700,092 2003 554,430 151,490 705,920 • 2004 553,156 157,800 710,956 2005 551,906 157,800 709,706 2006 - 162,000 162,000 ., $10,220,022 $2,755,050 $12,975,072 $379,805 is available in the Debt Service Fund to service the general obliga- tion bonds. In the Sewer Fund, $123,547 cash is available. Of this, $112,709 is avail- able to service the Sewerage Revenue Bonds. The City is in compliance with all significant limitations and restrictions w contained in the various bond indentures. 27 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1987 NOTE E - CAPITAL LEASE OBLIGATIONS The City is the lessee of certain equipment under capital leases. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are amortized over their estimated productive lives, Following is a summary of property held under capital leases. General Fixed Enterprise Asset Group Funds Lugger truck $ - $ 64,425 Sanitation truck - 99,476 Golf carts - 68,000 Golf course irrigation system - 204,281 Fire truck 410,164 - 410,164 436,182 Less accumulated amortization - 71,144 $410,164 $365,038 The. following is a schedule by years of future minimum lease payments under capital leases together with the present value of the minimum lease payments as of June 30, 1987. Year ending General Fixed Enterprise June 30. Asset Group Funds 1988 $105,032 $ 90,217 1989. 105,032 91,135 1990 105,032 75,180 1991 105,032 40,331 1992 52,489 28,968 Succeeding years - 144,886 Total minimum lease payments 472,617 470,717 Less amount repre- senting interest 62,453 105,679 Present value of net minimum lease. pay- ments $410,164 $365,038 28 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED .. June 30, 1987 NOTE E - C,APITAL LEASE OBLIGATION - Continued Current portion $ 83,048 $ 65,870 Noncurrent portion 327,116 299,168 $410,164 $365,038 NOTE F - DEFIGIT FUND BALANCES The Parks and Recreation Special Revenue Fund has a deficit fund balance of. $5,798. NOTE G - PENSION PLAN r The City participates in the LAGERS retirement system. LAGERS (Local Government Employees Retirement System) is a statewide retirement plan for local government employees and is administered by a board of trustees which is completely independent of the City of Cape Girardeau. The City is responsible only for the remittance of City contributions to the plan. Substantially all full-time employees of the City are covered under LAGERS. The cost to the City for the year ended June 30, 1987, was approximately $305,238 which includes amortization of prior service cost over an initial .. forty (40) year period. The Missouri statutes require that accrued pension cost be funded. The contribution rates are determined by the LAGERS' Board of Directors and their actuary. The total unfunded liability for benefits accrued as of February 28, 1987, the date of the latest available actuarial r valuation, was $1.,646,401. Due to the nature of the plan, it is not possible to determine the actuarially computed value of vested and nonvested accumu- lated plan benefits and the plan's net assets for the City standing alone. There were no changes in actuarial methods during the past fiscal year. NOTE N - INSTALLMENT SALE The City sold a former public works building to the Southeast Missouri State University Development Foundation on November 19, 1979, for $100,000. The sale agreement calls for ten annual installments of $10,000 plus Interest at the highest current investment rate received by the City. At June 30, 1987, $10,000 was receivable on this obligation. NOTE I - INTEREST EXPENSE Interest cost totaling $647,323 was incurred during the year ended June 30, 1981. No interest cost was capitalized as part of the cost of assets constructed during the period. 29 ■ City of Cape Girardeau, Missouri GENERAL FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 Variance - Favorable Budeet Actual (Unfavorable) REVENUES Taxes $ 6,655,378 $ 6,553,547 $(101,831) Licenses and pezmi:s 472,300 457,810 (14,490) Fines and forfeitures 342,000 330,026 (11,974) Interest 85,688 1.20,552 34,864 Fees and service charges 259,000 255,734 (3,266) Intergovernmental 89,161 90,825 1,664 Miscellaneous 155,763 158,083 2,320 Loan proceeds - 410,164 410,1.64 _ .......... 8,059,290 .......... 8,376,741 ..___..._ 317,451 EXPENDITURES General government 1,457,730 1,485,183 (27,453) Public safety 4,112,834 4,112,155 679 Highways and streets 1,422,368 1,409,242 13,126 Culture and recreation 63,012 56,990 6,022 7,055,944 7,063,570 (7,626) EXCESS OF REVENUES OVER EXPENDITURES 1,003,346 1,313,171 309,825 OTHER FINANCING SOURCES (USES) Operating transfers in 560,000 560,000 - Operating transfers out (1,543,416) (1,953,580) (410,164) .......... (983,416) .......... (1,393,580) .____..__ (410,164) .. .......... .......... ..._.._. EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDI- TURES AND OTHER FINANCING USES $ 19,930 $ (80,409) $(100,339) 31 City of Cape Girardeau, His .... i SPECIAL REVENUE FUNDS COME INING BALANCE SHEET June 30, 1987 Federal Downtown Convention/ Shared Business Parks and motor Totals Tourism Revenue District Recreation Health Fuel Tax (Memorandum Fund Fund Fund Fund Fund Fund Oniv) ASSETS Cash $494,095 $ - $1,755 $ 65,029 $19,529 $310,377 $ 890,785 Receivables, net of allowances fon doubtful teceivables Personal property, real estate and taxes - - 892 - 5,361 - 6,253 Hote.chants l, motel, rest.....[ tax 44,942 - - - - - 44,942 Motor fuel tax - - - - - 71,368 74,368 Motor vehicle license fees - - - - - 29,964 29,964 Motor vehlc Le axis. tax - - - - - 12,452 12,452 In, .... c 13,265 - - 1,473 430 10,245 25,413 Restricted cash and investments - - - 44 676 - 720 $552,302 $ - 62,647 $ 66,546 $25,996 $437,406 $1,084,897 LIABILITIES Account p.,able $ 46,323 $ - $ 63 $ 43,682 $ 772 $ - $ 90,840 Accrued liabilities Payroll taxes and fringe benefit - - - 28,662 2,810 - 31,472 Fwd balance Reserved - - - 44 676 - 720 Unreserved 505,979 - 2,584 (5,842) 21,738 437,406 961,865 505,979 - 2,584 (5,798) 22,414 437,406 962,585 $552,302 $ - $2,647 $ 66,546 $25,996 $437,406 $1,084,897 31 1 1 I i 1 1 1 1 1 1 f 1 1 1 1 1 1 1 1 City of Cape Girardeau, Miss0uri SPECIAL REVENUE PONDS COMBINING STATEMENT OF REVENUES AND EXPENDITURES Year ended June 30, 1987 Federal Oovn Convention( shared Business Parks and Motor Total. Tourism Revenue District Recreation Health Fuel Tax (Memorandum Fund Fund Fund Fund Fwd Fund Only) REVENUES Taxes and special asaes.ments $ 520,260 $ - $ 15,108 $ - $ 84,780 $ - $ 620,148 Interest 24,993 18,284 11001 6,108 2,290 52,072 104,828 Fees and se tyle. charges - - - 89,085 - - 89,085 In[e rgovermnental - 260,746 - 2,196 3,174 609,682 825,798 545,253 279,030 16,189 97,389 90,244 661,754 1,689,859 EXPENDITURES General gave toren[ 159,054 10 133 - - 159,997 Hlghvays and streets - - _ _ _ 5,, 534 5,534 Health - - - - 102,049 - 102,049 Culture and recreation - - - 946,974 - - 946,974 159,854 10 133 946,924 102,049 5,534 1,214,554 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 385,399 229,020 16,056 (849,565) (11,805) 656,220 475,305 OTHER FINANCING SOURCES (USES) Operating transfers In - - - 956,279 30,137 - 986,916 Operating transfers out (420,000) (521,018) (30,000) (72,000) (15,000) (912,629) (1,970,892) (420,000) (521,018) (30,000) 884,779 15,132 (912,979) (983,981) EXCESS (DEFICIENCY) OF REVENUES AND OTHER ------- -------- ------- -------- ------- -------- ______---- FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (34,601) $(241,998) $(13,944) $ 35,194 $ 3,332 $(256,659) $ (508,676) 32 I 1 1 1 1 1 1 i i 1 i 1 1 i 1 1 1 1 i City of Cape Girardeau, Mlasnurf SPECIAL REVENUE FUNDS COMBINING STATEMENT OF CHANGES IN FUND BALANCE Year ended June 30. 1987 33 Federal Oovntovn Conventlonl Shared Business Parks end Motor Totals Toads. Revenue District Recreation Health Fuel Tax K-301eum (Meow random Fund Fund Fund Fund Fund Fund Fund Only) Fund balance at beglming of ysee - cash basis $523,849 $ 241,251 $ - $ - $21,236 $ 59],]63 $ 37,838 $1,421,937 Adjustments t .vert 10 the vccrnal basis (note A2) 16,731 )4] - (40,992) (2,154) 96,302 - 70,634 Fund balance at beglMls, of year - accrual basis 540,580 241,998 - (40,992) 19,082 694,065 37,838 1,492,571 Reclassify type of fund - - 16,528 - - - (37,838) (21,310) Excess (deficiency) of revenues and other financing s over expenditures and other fire—log usea (34,601) (241,998) (13,944) 35,194 3,332 (9) ------ - (508,6]6) Fund balance at end of year $505,979 $ - $ 2,564 $ (5,798) $22,414 $ 437,406 $ - $ 962,585 33 City of Cape Girardeau, Missouri CONVENTION/TOURISM SPECIAL REVENUE FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 REVENUES Taxes and special assessments Interest EXPENDITURES General government EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING USES Operating transfers out DEFICIENCY OF REVENUES OVER EXPEND- ITURES AND OTHER FINANCING USES 34 Variance - Favorable Budget Actual (Unfavorable, $ 506,000 $ 520,260 $ 14,260 18,366 24,993 6,627 524,366 545,253 20,887 140,000 159,854 (19,854) 384,366 385,399 1,033 (420,000) (420,POO) - $ (35,634) $ (34,601) $ 1,033 City of Cape Girardeau, Missouri FEDERAL SHARED REVENUE SPECIAL REVENUE FUND .. STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 REVENUES InCerest Intergovernmental EXPENDITURES General government EXCESS OF REVENUES OVER. EXPENDITURES OTHER FINANCING USES Operating transfers out DEFICIENCY OF REVENUES OVER EXPEND- ITURES AND OTHER FINANCING USES 35 Variance - Favorable Budget Actual (Unfavorable) $ 10,492 $ 18,284 $ 7,792 260,746 260,746 - 271,238 279,030 7,792 1.0 10 - 271,228 279,020 7,792 (512,479) (521,01.8) (8,539) $(241,251) $(241,998) $ (747) 35 City of Cape Girardeau, Missouri DOWNTOWN BUSINESS DISTRICT SPECIAL REVENUE FUND .. STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 REVENUES Taxes and special assessments Interest EXPENDITURES General government EXCESS OF REVENUES OVER EXPENDITURES OTHER. FINANCING USES Operating transfers out DEFICIENCY OF REVENUES OVER EXPENDITURES AND OTHER FINANCING USES 36 Variance - Favorabl.e Budget Actual (Unfavorable), $ 14,032 $ 15,1.08 $1,076 777 1,081 304 14,809 16,189 1,380 70 133 (63) 14,739 16,056 1,317 (30,000) ------ (30,000) .-__-._ __... $(15,261) $(13,944) $1,317 City of Cape Girardeau, Missouri PARKS AND RECREATION SPECIAL REVENUE FUND + STATEMENT OF REVENUES ANI1 EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 37 Variance - Favorable + Budget Actual jUnborablej REVENUES Interest $ 5,534 $ 6,198 $ 574 Fees and service charges 90,800 89,085 (1,715) + Intergovernmental 2,197 2,196 --- ----- (1) ------ --------- 98,531 97,389 (1,142) + EXPENDITURES Culture and recreation 978,230 946,974 31,256 + DEFICIENCY OF REVENUES OVER ----- --------- _-__ EXPENDITURES (879,699) (849,585) 30,1.14 + OTHER FINANCING SOURCES (USES) Operating transfers in 956,719 956,779 - Operating transfers out (72,000) (72,000) ------- 884,779 --------- 884,779 __---- - EXCESS OF REVENUES OVER EXPENDITURES + AND OTHER FINANCING SOURCES $ 5,080 $ 35,194 $30,114 37 City of Cape Girardeau, Missouri HEALTH SPECIAL REVENUE FUND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 REVENUES Taxes and special assessments Interest. Intergovernmental EXPENDITURES Health DEFICIENCY OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES 38 $ (4,648) $ 3,332 $7,980 Variance - Favorable Budget Actual (Unfavorable) $ 83,085 $ 84,780 $1,695 1,893 2,290 397 3,162 3,174 12 88,140 90,244 2,104 107,925 102,049 5,876 (7.9,785) (11,805) 7,980 30,137 30,137 - (15,000) (15,000) - 15,137 15,137 - $ (4,648) $ 3,332 $7,980 City of Cape Girardeau, Missouri MOTOR FUEL TAX SPECIAL REVENUE FUND .. STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 REVENUES Interest Intergovernmental EXPENDITURES Highways and streets EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING USES Operating transfers out DEFICIENCY OF REVENUES OVER EXPENDI. TURES AND OTHER FINANCING USES 39 Variance - Favorahle Budeet Actual (Unfavorable) $ 25,697 $ 52,072 $26,375 510,000 609,682 39,682 595,697 661,754 66,057 5,534 5,534 - 590,163 656,220 66,057 (91.2,879) -------- (912,879) -------- - ---- $(322,716) $(256,659) $66,057 39 40 City of Gape Girardeau, Missouri 1984 PUBLIC BUILDING BONDS FUND + STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 Variance - Favorable + Budget Actualjnfavorable� REVENUES Taxes and special assessments $ 201,546 $ 211,858 $ 10,312 Interest 3,422 5,282 1,860 Intergovernmental - 7,709 ----- 7,709 .___.— 204,968 224,849 19,881 + EXPENDITURES Debt service Principal retirement 115,000 115,000 - + Interest and fiscal charges 602,810 498,532 104,278 -------- 717,810 ------- 613,532 ------- 104,278 ..-------- ____--- ------- DEFICIENCY OF REVENUES OVER EXPENDITURES (512,842) (388,683) 124,159 + OTHER FINANCING SOURCES (USES) Operating transfers in 765,714 765,714 - Operating transfers out - (18,289) (18,289) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER + FINANCING USES $ 252,872 $ 358,742 $105,870 40 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 i 1 ASSETS Cash In investments Grants receivable LIABILITIES Accounts payable Fund balance unrese r,ed City of Cape Girardeau, Missouri CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEEP Jme 30, 1987 Mu1t1-Use Center FAU Street Co.., ruction Grants Pond Fund $22,491 $(128,316) - 164,822 $22,491 $ 36,506 $ - $ 22,947 22,491 13,559 $22,491 $ 36,506 41 CURD Park Park Torale Grants Grants Imptnvements (Memorandum Fund Fund Fund Only) $5,495 $(22,285) $82,863 $(39,752) 4,346 22,285 - 191,453 $9,841 $ - $82,863 $151,701 $ 504 $ - $15,679 39,130 9,337 - 67,184 112,571 59,841 $ - $82,863 $151,701 1 i 1 1 1 1 f 1 1 f 1 1 1 1 1 1 1 1 1 Ctty of Cape Girardeau, Mie --L CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES AND EXPENDITURES Year ended June 30. 1987 42 Multi -Use Center FAU Street CDBG Park Park Total. Construction Gran Granta Grants Improvements (Memorandum Fund Fund Fund Fund Fund Only) REVENUES Interest $ 143,456 $ - $ - $ -_ $ $ 143,456 Inrergove rumental - 640,405 196,027 66,800 903,232 143,456 640,405 196,027 -------------- 66,800 - __________ 1,046,688 EEPENDITUBES Capital projects 3,060,592 854,334 191,061 164,848 23,680 4,294,515 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,917,136) (213,929) 4,966 (98,048 (23,680) (3,24),82]) OTHER FINANCING SOURCES (USES) Operating transfers in 18,289 22],8]9 - 98,126 90,864 435,158 Operating tram£ers our (345,714) - - - - (345,714) (327,425) 22],6]9 - 98,126 90,864 89,444 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $(3,244,561) $ 13,950 $ 4,966 $ 78 $ 67,100 $(3,158,303) 42 1 1 1 1 1 1 i i i i 1 Y 1 i i 1 i i i City of CapeGirardeau, Missouri CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF CHANGES IN FUND 6ALANCE Year ended June 30, 1987 43 Multi -Use FAU Center Street CLOG Park Park CapltaL Sever Totals Construction Gsanb Grants Grants Improvements Improvements Const rucrlon (Memorandum Fund Fund Fund Fund Fund Fund Fund Only) Fund balance at beginning of year - cash basis $ 3,4]],266 $ - $ - $ - $ - $(38,189) $ 1,137,623 $ 4,5]6,]00 Adjustmentvert to accrual basis(—to AD) (210,214) (391) 17,305 (78) - 25,255 (29,647) (197,770) Fund baLance at beginning of year - accruaL basis 3,267,052 (391) 17,305 (78) - (12,934) 1,10],9]6 4,378,930 Reclassify type of fund - - (12,934) - - 12,934 (1,10],9]6) (1,10],9]6) Excess (deficiency) of revenues and other financing sources overexpend- itures and other financing uses (3,244,561) 13,950 4,965 78 67,184 - - (3,158,383) Fund balance at end of year $ 22,491 $13,559 $ 9,337 $ - $67,184 $ - $ - $ 112,571 43 City of Cape Girardeau, Missouri MULTI -USE CENTER CONSTRUCTION FUND STATEMENT OF REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 REVENUES Interest EXPENDITURES Capital projects DEFICIENCYY OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $(3,477,266) $(3,244,561) $232,705 44 Variance - Favorable Budeet Actual(Unfavorable) $ 181,000 $ 143,456 $(37,544) 3,312,552 3,060,592 ______ 251,960 .___— (3,131,552) (2,917,136) 214,416 - 18,289 18,289 (345,714) (345,714) - (345,714) _____ __________ (327,425) ____..__— .___-__ 18,289 ------- $(3,477,266) $(3,244,561) $232,705 44 City of Cape Girardeau, Missouri FAD STREET GRANTS FUND .. STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 45 Variance - Favorable ., Budget Actual (Unfavorable) REVENUES Intergovernmental $ 617,304 $ 640,405 $ 23,101 w EXPENDITURES Capital projects 830,386 ------ 854,334 -------- (23,948) -___.-_ DEFICIENCY OF REVENUES OVER EXPENDITURES (21.3,082) (213,929) (847) OTHER FINANCING SOURCES r Operating transfers in 227,879 227,879 - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES $ 1.4,797 $ 13,950 $ (847) 45 City of Cape Girardeau, Missouri COMMUNITY DEVELOPMENT BLOCK GRANT FOND STATEMENT OF REVENUES AND EXPENDITURES BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 Variance - Favorabl.e .. Budget Actual (Unfavorable) REVENUES Intergovernmental $256,477 $196,027 $(60,450) EXPENDITURES Capital projects 243,542 191,061 52,481 ------- ------- ------- EXCESS OF REVENUES OVER EXPENDITURES $ 12,935 $ 4,966 $ (7,969) W1 47 City of Cape Girardeau, Missouri PARK GRANTS FOND STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL, Year ended June 30, 1987 Variance - Favorable Budzot Actual (Unfavorable) REVENUES Intergovernmental $ 66,800 $ 66,800 $ - r EXPENDITURES Capital projects 162,251 164,848 (2,597) r DEFICIENCY OF REVENUES OVER EXPENDITURES (95,451) (98,048) (2,597) OTHER FINANCING SOURCES Operating transfers in 95,451 98,126 2,675 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES $ - $ 78 $ 78 47 48 City of Cape Girardeau, Missouri PARK IMPROVEMENTS FUND + STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 Variance - Favorable ..Bud et Actual (Unfavorable) EXPENDITURES Capital projects $26,000 $23,680 $2,320 OTHER FINANCING SOURCES Operating transfers in 85,000 90,864 ----- 5,864 __.__ ----- + EXCESS OF OTHER FINANCING SOURCES EXCESS OVER EXPENDITURES $59,000 $67,184 $8,184 48 City of Cape Girardeau, Missouri SPECIAL ASSESSMENTS - STREETS FUND BALANCE SHEET June 30, 1987 ASSETS Cash and investments Special assessments Interest LIABILITIES Fund balance Unreserved 49 $122,125 111,957 2,764 $236,846 $236,846 $236.846 50 City of Cape Girardeau, Missouri SPECIAL ASSESSMENTS - STREETS FUND ,. STATEMENT OF REVENUES AND EXPENDITURES - BUDGET (GAAP BASIS) AND ACTUAL Year ended June 30, 1987 Variance - Favorable Budeet Actual (Unfavorable) REVENUES Special assessments $ 55,035 $ - $(55,035) Interest 21,000 22,940 1,940 ------ .___-._ ----- 76,035 76,035 22,940 (53,095) .. EXPENDITURES Principal 173,000 1.73,000 - Interest 16,000 11,803 4,197 -------- 189,000 -------- 184,803 _-__---_ ------- 4,197 DEFICIENCY OF REVENUES OVER -------- EXPENDITURES (112,965) (161,863) (48,898) OTHER FINANCING SOURCES Operating transfers in 175,000 175,000 - _.-___.- -------- ------- EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES $ 62,035 $ 13,137 $(48,898) 50 City of Cape Girardeau, Missouri SPECIAL ASSESSMENTS - STREET FUND COMBINING STATEMENT OF CHANGES IN FUND BALANCE Year ended June 30, 1987 Fund balance at beginning of year - cash basis Adjustment to convert to accrual basis (note A2) Fund balance at beginning of year - accrual basis Reclassify type of fund Excess of revenues and other financing sources over expendi- tures and other financing uses Fund balance at end of year Downtown Street Business Totals Assessment District (Memorandum Fund Fund On1y) $ 46,923 $ 18,025 $ 64,948 176,786 (1,447) 275,289 223,709 16,528 240,237 - (16,528) (16,528) 51 1.3,137 - 13,137 $236,846 $ - $236,846 City of Cape Girardeau, Missouri ENTERPRISE FUNDS COMBINING BALANCE SHEET Sun' 30, 1987 ic[als Sever Solid Waste Airport Golf Ccucse (Memorandum Fund Fund Fund Fund Only) ASSETS Cash and investments $ (1,900) $(4],85]) $ 98,349 $ 54,806 $ 103,398 U[lli[y charges receivable (net of allowance for doubtful receivable.) 165,771 109,910 - - 215,681 Grants receivable 50,000 - 34,115 - 84,115 Interest [e..1-ble - - 2,067 689 2,756 Restricted...h and investments 125,442 - - 16,625 142,072 Prepaid lnsn[ance 1,495 - 433 54 1,982 340,813 62,053 134,964 22,124 610,004 Property, plant and equipment Land 24,250 55,921 354,649 - 435,320 Buildings 8,055,235 30,000 802,255 1,500 81893,990 Improvements other than buildings 2,002,199 - 3,219,589 - 10,226,288 Equipment 229,282 642,235 41,389 126,592 1,090,003 C... tr.c[lan In progrms - - - 185,886 185,886 15,366,466 728,656 4,422,882 313,983 20,831,982 Less accumulated depreciation 4,377,656 352,124 1,968,290 42,569 6,246,189 10,988,810 326,482 2,454,092 266,414 14,085,298 $11,329,623 $438,535 $2,589,056 $338,588 $14,695,802 LIABILITIES Accounts payable $ 108,422 $ 29,426 $ 25,428 $ 91941 $ 123,262 Accrued liabilities Payroll taxes and fringe benefits 11,623 15,431 11160 4,125 32,339 Interest payable 37,126 1,352 - 6,188 44,216 Revenue bonds payable 1,325,000 - - - 1,375,000 Lease purchase obligation payable 29,326 24,839 - 260,873 365,038 Retained aa rnings Res. rved 125,447 - - 16,625 142,022 Unreserved 9,642,529 317,487 2,562,468 40,836 12,563,320 9,268,026 317,482 2,562,468 52,461 12,205,442 $11,329,623 $438,535 $2,589,056 $338,588 $14,695,802 52 I 1 f f f 1 i 1 1 1 1 1 1 1 1 1 1 i f OPERATING REVENUES Charges for se rvlce Rents Conte seion and equipment sales Interest Miscellaneous Intergovernmental OPERATING EXPENSES Personal s rvtces General operations Contractual s r ices Capital outlay projects Depreciation Operating lose NONOPERATING EXPENSES Interest Natalie. chat,. INCOME (LOSS) BEFORE OPERATING TRANSFERS OTHER FINANCING SOURCES (ONES) Operating transfers In Operating transfers out NET INCOME (LOSS) City of cape Girardeau, Missouri ENTERPRISE FUNDS CWffiINING STATEMENT OF REVENUES AND EXPENSES Year ended June 30, 1987 Sever Solid Yaate Fnna Fund $1,064,371 $1,113,907 4,510 38,387 2,586 500,000 1,605,344 1,118,417 421.742 576,442 84,251 361,777 273,987 361,453 351 6,626 7,841 - 361,992 65,142 1,150,164 1,371,440 455,180 (253,023) 115,071 6,160 671 - --------- --------_ 115,742 6,160 339,438 (259,183) 155,000 345,000 (38,500) (48,500) 116,500 296,500 $ 455,938 $ 37,317 53 Totals Airport Golf Course (MenwraMum Fond Fond Only) $ 24,361 $211,479 $2,414,118 79,603 - 84,113 - 55,415 55,415 5,509 3,329 47,225 1,103 3,014 6,703 160,295 374 660,669 270,871 273,611 3,268,243 30,549 121,311 1,158,044 16,925 93,401 556,354 194,611 29,246 859,297 11,470 - 18,447 - - 7,841 142,121 19,944 589,199 403,676 263,902 3,189,182 (132,805) 9,709 79,061 - 5,909 127,140 -------- - ------- 671 5,909 --------- 127,811 (132,805) 3,800 (48,750) 62,028 - 562,028 - (9,750) (96,750) 62,028 (9,750) 465,278 $ (70,777) $ (5,950) $ 416,528 I 1 1 1 1 1 i 1 1 1 1 1 1 i 1 i 1 i 1 City of ape Gicataeau, Missouri ENTERPRISE FONDS COl3INING STATEMENT OF CHANGES IN RETAINED EARNINGS Year ended June 30, 1987 Totals $ever Solid ..are Airport Golf Course (Memorandum Fund Fund Fund Fond Only) Retained earnings at beginning of year - cash basis R". ..(.4 ' t4�:)i�i, _J_ $ 110,904 $ - $ 106,876 $49,889 $ 267,669 Adjustments to convert to accrual basis (nate A2) R,. F . �63� b -Ig (1,391,049) (139,680) (22,240) (9,915) (1,563,684) Adjustment. to record fined assets- �9, CA 37nk 485,05] 419,850 2,548,609 23,437 12,476,953 rt�r cu t: _________ Retained earnings (deficit) at beginning of year - accrual basis 8,204,112 AA ip`_. 280,170 2,633,245 63,411 11,180,938 Contribution from Capital Projects Fund Nr' C'_ - '-'� 1,10],9]6 - - _ 1,107,976 coN;4cti 5�,»0.�� -��-� Net Income (loss) c(#- 455,938 37,317(70, ]) (5,950) 416,528 ------ ------ Retained earnings (deficit) at end of year $ 9,768,026 $ 31],48] $2,562,468 $57,461 $12,705,442 y. x? q)H50 >K •<.FC(.'�(FF 'RC' -G C96 rGul c', I, 136 `t� _ .. ��... u? G 0111 55=. � 25 - - — 54 City of Cape Girardeau, Missouri INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET June 30, 1987 LIABILITIES Accounts payable Accrued liabilities Payroll taxes and fringe benefits Retained earnings Reserved Unreserved 55 $ 22,458 Data Fleet Totals 7,491 Processing Management (Memorandum 192,988 Fund Fund Only) 436,195 ASSETS --------- 1,128,103 Cash and investments $ 54,387 $174,114 $ 228,501 Interest receivable 1,378 4,133 5,511 Restricted cash and investments - 192,988 192,988 Prepaid insurance - 40,195 40,195 ------- 55,765 ------- 411,430 --------- 467,195 Property, plant and equipment Land - 37,500 37,500 Buildings - 337,500 337,500 Equipment 455,064 ------- 93,210 548,274 455,064 ------- 468,210 --------- 923,274 Less accumulated depreciation 51,095 ------- 101,666 152,761 403,969 ------- ------- 366,544 ------- --------- 770,513 --------- $459,734 $777,974 $1,237,708 LIABILITIES Accounts payable Accrued liabilities Payroll taxes and fringe benefits Retained earnings Reserved Unreserved 55 $ 22,458 $ 78,575 $ 101,033 1,081 7,491 8,572 - 192,988 192,988 436,195 ------- 498,920 935,115 436,195 ------- 691,908 --------- 1,128,103 $459,734 $777,974 $1,237,708 56 City of Cape Girardeau, Missouri INTERNAL SERVICE FONDS .. COMBINING STATEMENT OF REVENUES AND EXPENSES Year ended June 30, 1987 Data Fleet Totals Processing Management (Memorandum Fund Fund Only) OPERATING REVENUES Fee charges $235,977 $ 937,964 $1,173,941 Sale of property - 81 81 Interest 2,400 17,338 19,738 Miscellaneous - 14,154 14,154 238,317 969,537 1,207,914 ~ OPERATING EXPENSES Personal services 44,014 237,587 2.81,621 General operations 10,671 317,110 328,381 Contractual services 214,673 270,955 485,628 Capital outlay - 656,226 656,226 Depreciation 42,939 18,619 61,558 312,317 1,501,097 1,813,414 a LOSS BEFORE OPERATING TRANSFERS (73,940) (531,560) (605,500) OPERATING TRANSFERS IN 114,500 785,914 900,414 NET INCOME (LOSS) $ 40,560 $ 254,354 $ 294,914 56 City of Cape Girardeau, Missouri INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CHANGES IN RETAINED EARNINGS Year ended June 30, 1987 Retained earnings at beginning of year - cash basis Adjustments to convert to accrual basis (note A2) Adjustments to record fixed assets (note A3) Retained earnings at beginning of year - accrual basis Net income (loss) Retained earnings at end of year Data Fleet Totals Processing Management (Memorandum Fund Fund Only) $130,900 $118,348 $ 249,248 (10,006) (57,016) (67,022) 274,741 ------- 376,222 ------- 650,963 ------- .- 395,635 437,554 833,189 40,560 254,354 294,914 $436,195 $691,908 $1,128,103 im,09g 51 C16 57 ' City of Cape Girardeau, Missouri 58 TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET June 30, 1987 Flood Totals Library Protection. (Memorandum Fund Fund Only) ASSETS Cash and investments $245,064 $ - $245,064 Taxes receivable (net of allowance for doubtful. receivables) 18,198 - 18,198 interest receivable 5,595 1,722 7,317 Restricted cash and investments 3,227 58,660 61,887 ------ ------ ._.-.__ $272,084 $60,382 $332,466 LIABILITIES Accounts payable $ 8,629 $ - $ 8,629 Accrued liabilities Payroll taxes and fringe benefits 4,824 - 4,624 Fund balance Reserved 3,227 58,660 61,887 " Unreserved 255,404 1,722 257,126 ...----- 258,631 -__... 60,382 319,013 $272,084 $60,.382 $332,466 58 City of Cape Girardeau, Missouri TRUST AND AGENCY FUNDS COMBINING STATEMENT OF REVENUES AND EXPENSES Year ended June 30, 1987 REVENUES Taxes and speciaL assessments Fees and service charges Interest Intergovernmental Fines and forfeitures Miscellaneous EXPENSES Personal services General operations Contractual services Capital outlay EXCESS OF REVENUES OVER EXPENDITURES 59 Flood Totals Library Protection (Memorandwn Fund Fund Only) $292,768 $ - $292,768 8,431 - 8,431 15,702 1,722 17,424 25,193 - 25,193 9,823 - 9,823 23,329 58,660 81,989 375,246 60,382 435,628 189,373 - 189,373 85,968 - 85,968 52,682 - 52,682 272 - 272 ---- 328,295 ------ - ------- 328,295 $ 46,951 $60,382 $107,333 SUPPLEMENTAL INFORMATION m KERBER,ECK & BRAECKEL CERTIFIED PUBLIC ACCOUNTANTS + 1221 BROADWAY OFFICESIN CAPE GIRARDEAU, MISSOURI 63701 MEMBERSAMERICAN CAPE GIRARDEAU. MISSOURI INSTITUTE OF CERTIFIED ST. LOUIS. MISSOURI PUBLIC ACCOUNTANTS KANSAS CITY. MISSOURI + SPRINGFIELD. ILLINOIS 3143.x'0%B MILWAUKEE. WISCONSIN WASHINGTON, OC. REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS Honorable Mayor and Member of the + City Council City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri for the year ended June 30, 1987, and have issued our report thereon dated September 24, 1987. As part of our examination, we made a study and evaluation of the system of internal accounting control to the extent we + considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial compliance audits contained in the U.S. General Accounting Office Standards for Audit of Governmental Organizations Programs Activities. and Functions. For the purpose of this report, we have classified the significant internal accounting controls in the following categories' General Petty cash Bank accounts Cash receipts Cash disbursements Investments Revenues and receivables + Property and equipment Purchasing, receiving and accounts payable Payrolls Budget Electronic data processing Our study included all of the control categories listed above. The purpose of our study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the City's financial + statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. + The management of the City of Cape Girardeau, Missouri is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss 61 REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION MADE AS A PART OF AN fxAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS - CONTINUED from unauthorized use or disposition, and 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 accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control, taken as a whole or on any of the categories of controls identified in the first paragraph. However, our study and evaluation disclosed no condition that we believe to be a material weakness. These conditions were considered in determining the nature, timing, and extent of the audit tests to be applied in our examination of the 1987 financial state- ments, and this report does not affect our report on the financial statements _ dated September 24, 1987. This report is intended solely for the use of management and the cognizant audit agency, and other Federal audit agencies, and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which, upon acceptance by the City of Cape Girardeau, Missouri is a matter of public record. /- 4 ,fl .. Cape Girardeau, Missouri September 24, 1987 c 0 ■ 62 KERBER, ECK & BRAECKEL CERTIFIED PUBLIC ACCOUNTANTS a 1221 BROADWAY OFFICESIN CAPE GIRARDEAU. MISSOURI 63701 MEMBERS AMERICAN CAPE GIMROEAL. MISSOURI INSTIME OF CEETIFIEO ST, -g S, MISSOURI PUBLIC ACCOUNTANTS KANSAS CITY. MISSOURI SPRINGFIELD ILLINOIS 314334UifiB MILWAUKEE. WISCONSIN WASHINGTON, O.C. REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN EXAMINATION OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH THE STANDARDS FOR AUDIT ISSUED BY THE GAO Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri for the year ended June 30, 1987, and have issued our report thereon dated September 24, 1987. Our examination was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs Activities, d Functions, issued by the U.S. General Accounting Office and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the City of Cape Girardeau, Missouri is responsible for compliance with laws and regulations. In connection with our examination referred to above, we selected and tested transactions and records to determine the City's compliance with laws and regulations, noncompliance with which could have a material effect on the general purpose financial statements. The results of our tests indicate that for the items tested, the City of Cape Girardeau, Missouri complied with those provisions of the laws and regulations noncompliance with which could have a material effect on the general purpose financial statements. Nothing came to our attention that caused us to believe that for the items not tested the City of Cape Girardeau, Missouri was not in compliance with laws or regulations, noncompliance with which could have a material effect on the general purpose financial statements. Cape Girardeau, Missouri September 24, 1987 63 KERBER,ECK &. BRAECKEL CERT HED MBLIC ACCOUNTANTS 1221 BROADWAY O'RcesIN CAP GMAflDBAU. 4ISSOUPo6a4ol MEMat4ft6 AMeRICAN CAPE GRAftOEAU. MISEOU0.1 INlroouE OF CERTIRED ST. LOUIS, .NISSOUflI F BLIC ACCOUNTANTS NSAS01,MoSMA- SMWiRELD.iLLiIols MILWA1JKEE. WISCONSIN WASHtNOT(W, on REPORT ON STATEMENT OF FEDERAL FINANCIAL ASSISTANCE Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri for the year ended June 30, 1987, and have issued our report thereon dated September 24, 1987. Our examination of such general purpose financial statements was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for A dit f Oovernmental Organizations, Programs, Activities,,and Functions, issued by the U.S. General Accounting Office and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Statement of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial. statements. The information in that schedule has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. Cape Girardeau, Missouri September 24, 1487 64 I 1 1 1 i 1 1 1 1 i ! { i i 1 1 i a 1 City of Cape Girardeau, Miasou ri STATEMENT OF FEDERAL FINANCIAL ASSISTANCE Jame 30. 1987 Federal Program CFDAo r Avail Balance Disbursements/ Balance Federal Grantor/Paas-Th-ah GuntarlTttle Number Amount June 30. 1906 Receipts Expenditures lune 30, 1987 Department of the Treasury Direct Program Federal Revenue Sharing 21.300 $ 260,746 $ 241,998 $ 279,030 $ 521,028 $ - Department of Housing and Urban Development Passed through Missouri Department of Economic Development Community Development Block Grant CDA -052-66; 83 -CO -02 14.219 642,700 327 9,243 9,243 327 Common it, Development Block Grant CDA -082-03; 84 -NO -01 14.219 612,500 (1,310) 226,766 230,241 (4,785) Conmunity Development Block Grant CDA -104-66; 86 -ED -11 14.219 293,365 - 4,346 4,457 (111) Rental Rehabilitation Program NR -84 -SG -290103 14.230 - (50) 1,091 1,467 (426) Community Development Block Grant CDA -104-43; 86 -ND -09 14.230 314,000 - - 87 (87) Total U.B. Department of Hous ing and Urban Development 1,862,565 (1,033) 241,446 245,495 (5,082) Leper'mon ant O£ Trapor atl Federal Aviation Administration Air Traffic Be rvlces OTFA09-84-R20054 20.106 140,942 15,555 144,478 160,033 At, Develop Development Aid 3-29-0013-01 20.106 685,591 (80,108) 3,931 - (76,177) at, Development Aid 6-29-0013-06 20.106 415,030 (90,933) 13,420 - (77,513) Air Development Aid 6-29-0013-07 20.106 105,876- (31,813) ((2,514) Air Development Aid 20.106 456,611 22,632 25,146 Passed through Missouri Department of Public Safety Sobriety Checkpoints 86-03-23 20.600 3,008 - 2,111 1,254 857 Sobriety Checkpoints 87-03-17 20.600 3,300 - 1,872 1,872 - Passed through Missouri Hlghvay and Transportation Depart n Public Taxi Coupon Transportation Program HO-18-XO05-CG 20,509 52,500 - 51,193 174,192 (122,999) Federal Aid Urban Program FAUP Grant - M-1518(002) 20.205 - (713) 255,092 339,430 (85,051) FAUP Grant - M-1505(001) 20.205 - (2,472) 385,312 479,463 (96,623) Total U.S. Department of Transportation 1,862,858 (190,484) 891,876 1,181,390 (479,998) 65 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 f 1 1 1 City of Cape Girardeau, Missourt STATEMENT OF PEDERAL FINANCIAL ASSISTANCE - CONTINUED June 30, 1987 66 Federal Program CFDAo r Auard Balance Plainrsemen I/ Balance Federal Grantor/Pass-Thronah Grantor/Title Number Avo June 30, 1986 Receipts Exoendlrurea June 30, 1987 Department of Justice Passed through Missouri Department of Public safe" Crime Prevention Program 85-JACP-0031 2,574 - 2,400 14,974 (7,574) Department of Interior Passed through Missouri Department of Natural Resources Land and Water Conservation Grant - 29-01204 15.916 66,800 - 66,800 120,232 (103,432) TOTAL FEDERAL ASSISTANCE $ - $ 50,841 $1,486,552 $2,133,119 $(596,086) 66 KERBER,ECK & BRAECKEL CEBTIIIED PUBLIC ACCOUNTANTS 1221 BROADWAY OPPICESIN CAPE i+1ft'+ADEiU. Mi$5048163f01 M£M9EftS M1PR1GtN CAPE GIRAHDEAU. MISSOURI PUBLICACCOUNTANTS CCOUNTANTS sTLOU6MIsSIXffi1 KANSAS CITY, W1 UR1 31433a6:ien SPRING: EF , ILUN"S MILWAUKEE. WISCONSIN WASMNGTON. D C. REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape. Girardeau, Missouri, for the year ended June 30, 2987, and have issued our report thereon dated September 24, 1987. Our examination was made in accordance with generally accepted auditing standards; the standards for financial and compliance audits contained in the Standards for Audit of Covernmental Organizations. ProzramsActivitiesand Functiong, issued by the U.S. General Accounting Office; the Single Audit Act of 1484; and the provisions of OMB Circular A-128, Audits of State and Local Covernmeats and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the City of Cape Girardeau, Missouri, is responsible for the City's compliance with laws and regulations. in connection with the examination referred to above, we selected and tested transactions and records from each major Federal financial assistance program and certain nonmajor Federal financial assistance programs. The purpose of, our testing of transactions and records from those Federal financial assistance programs was to obtain reasonable assurance that the City of Cape Girardeau, Missouri, had, in all material respects, administered major programs and executed the tested nonmajor program transactions, in compliance with laws and regulations, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. Our testing of transactions and records selected from major Federal financial assistance programs disclosed no instances of noncompliance with those laws and regulations. In our opinion, for the year ended June 30, 1487, the City of Cape Girardeau, Missouri, administered its major Federal financial assistance programs in compliance, in all material respects, with laws and regulations, including those +� pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. EVA i REPORT ON COMPLIANCE WITH IAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS - CONTINUED The results of our tests 'indicate that for the transactions and records tested the City of Cape Girardeau, Missouri, complied with the laws and regulations referred to above, Our testing was more limited than would be necessary to express an opinion on whether the City of Cape Girardeau, Missouri, administered those programs in compliance, in all material respects, with laws and regulations noncompliance with which we believe could have a material effect on the allowability of program expenditures; however, with respect to .. the transactions that were not tested by us, nothing came to our attention to indicate that the City of Cape Girardeau, Missouri, violated laws and regulations, Cape Girardeau, Missouri September 24, 1987 ■ 68 �'- c &exw 411� KERBER,ECK & BRAECKEL CERTIFIED PUBLIC ACCOUNTANTS 1221 BROADWAY OFFlCFS IN CAPE GIRARDEAU. MISSOURI 63701 MEMBERSAMERICAN CAPE GIRARDEAU, MISSOURI INSTITUTE OF CERTIFIED ST. LOVIS. MISSOURI PUBLIC ACCOUNTANTS KANSAS CITY. MISSOURI SPRINGRELO. ILLINOIS 31433405fiB MILWAUKEE, WISCONSIN WASHINGTON, DC, REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri, for the year ended June 30, 1987, and have issued our report thereon dated September 24, 1987. As part of our examination, we made a study and evaluation of the internal control systems, including applicable internal administrative controls, used in administering Federal financial assistance programs to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations Programs, Activities and Functions, issued by the U.S. General Accounting Office, the Single Audit Act of 1984, and the provisions .. of OMB Circular A-128, Audits of State and Local Government. For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering Federal financial assistance ,. programs in the following categories: 1. Cycles of the Entities' Activity Treasury or financing " Revenue/receipts Purchases/disbursements External financial reporting 2. Financial Statement Captions Cash and cash equivalents _ Receivables Inventory Property and equipment Payables and accrued liabilities Debt Fund balance 3. Accounting Applications Billings Receivables Cash receipts Purchasing and receiving Accounts payable 69 REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT - CONTINUED 3. Accounting Applications - continued Cash disbursements Payroll. +' Inventory control Property and equipment General ledger + 4. Major Federal Assistance Programs Eligibility Types of services Matching level of effort Reporting + The management of the City of Cape Girardeau, Missouri, is responsible for establishing and maintaining internal control systems used in administering Federal financial assistance programs. In fulfilling that responsibility, + estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in administering Federal financial assistance programs are to provide management with reasonable, but not absolute, assurance that, with '! respect to Federal financial assistance programs, resource use is consistent with laws, regulations and policies; resources are safeguarded against waste, loss and misuse; and reliable data are obtained, maintained and fairly disclosed .* in reports. Because of inherent limitations in any system of internal accounting and administrative controls used in administering Federal financial assistance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study included all of the applicable control categories listed above, .. During the year ended June 30, 1987, the City of Cape Girardeau, Missouri, expended 24% of its total Federal financial assistance under major Federal financial assistance programs. + With respect to internal control, systems used in administering these major Federal financial assistance programs, our study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and are being followed satisfactorily, and evaluating any weaknesses. With respect to the internal control systems used solely in administering the other nonmajor Federal financialassistance programs of the City of Cape _ Girardeau, Missouri, our study and evaluation was limited to a preliminary review of the systems to obtain an understanding of the control environment And PLO] REPORT ON INTERNAL CONTROLS (ACCOUNTING AND ADMINISTRATIVE) - BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN EXAMINATION ,. OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIONAL TESTS REQUIRED BY THE SINGLE AUDIT ACT - CONTINUED the flow of transactions through the accounting system. Our study and evaluation of the internal control systems used solely in administering these nonmajor Federal financial assistance programs of the City of Cape Girardeau, + Missouri, did not extend beyond this preliminary review phase. Our study and evaluation was more limited than would be necessary to express an + opinion on the internal control systems used in administering the Federal financial assistance programs of the City of Cape Girardeau, Missouri. Accordingly, we do not express an opinion on the internal control systems used + in administering the Federal financial assistance programs of the City of Cape Girardeau, Missouri. Also, our examination, made in accordance with the standards mentioned above, + would not necessarily disclose material weaknesses in the internal control systems, for which our study and evaluation was limited to a preliminary review of the systems. However, our study and evaluation and our examination disclosed no condition that we believe would result in more than a relatively low risk that errors or irregularities in amounts that would be material to a Federal financial + assistance program may occur and not be detected within a timely period. These conditions were considered in determining the nature, timing, and extent of the audit tests to be applied in (1) our examination of the June 30, 1987 general purpose financial statements and (2) our examination and review of the City's compliance with laws and regulations, noncompliance with which we believe could have a material effect on the allowability of program expenditures for each major Federal financial assistance program and nonmajor Federal financial assistance programs. This report does not affect our reports on the general purpose financial statements and on the City's compliance with laws and + regulations dated September 24, 1987. This report is intended solely for the use of management and the cognizant audit + agency, and other Federal audit agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which, upon acceptance by the City of Cape Girardeau, Missouri is a + matter of public record. + Cape Girardeau, Missouri September 24, 1987 71 1 1 1 i l l 1 i i i 1 1 1 i 1 i 1 I i City of Gape Girardeau, Mis... rl STATEMENT OF INSURANCE COVERAGE For Year ended June 30, 1987 Issue Data E,Ic.rlon Date Ganpany and Policy Number Coverage December 31, 1986 December 31, 1987 General Accident Insurance Company Police Revolver and Pistol Club - NRA Club liability of America: Policy Y GL0064314-003 $400,000 July 28, 1986 July 28, 1987 Northland Insurance Ca;,m.,; Bodily injury and property damage - City Swimming Policy i FG120021 Pool, Capaha - $300,000, bodily injury: $100,000 property damage January 29, 1987 January 29, 1988 Northland Insurance Company; Bodily injury and property damage - City Swim,Lng Policy Y FGL19991 Pool, Centtal - $300,000, bodily Injury. $10,000 pmperrY damage August 12, 1986 August 12, 1987 National Flood Iu.—tor. Program; Tricklin, filter building - Southeast Comer, Pacific Policy Y PL -1-9370-8790-4 Seer and Missouri Pacific Railroad - $100,000 August 12, 1986 August 12, 1987 National Flood Insurance Program: Gauge and shop flood insurance - Southeast Come,, Policy Y FL -1-9370-8793-8 Cooper Street and Missouri Pacific Railroad - $90,200 August 12, 1986 August 12, 1987 Net tonal Flood Insurance Program; Pump station - Southeast Comer, Pacific Street and Policy Y FL -1-9370-8791-2 Missouri Paclflc Rallmad - $100,000 August 12, 1986 August 12, 1987 National Flood Insurance Program: Laboratory building - Southeast Garner, Cooper Street Policy Y FL -1-9370-8789-6 and Missouri Pacific Railroad - $100,000 August 12, 1986 August 12, 1987 National Flood Insurance Program: Vacuum/Incinerator - Southeast Comer, Pacific Street Policy Y FL -1-9370-8792-0 and Missouri Pacific Ra Ll road - $100,000 August 13, 1986 August 13, 1987 CNA Insurance: Policy Y AR 5610441 Workmen's compensation and employers 11ab L1lty - ..... tory July 1, 1986 July 1, 1987 Hartford Steam Bailer Inspection Sewage treatment plant - $1,000,000 and Insurance Company: Policy Y SL -9223237-13 July 1, 1985 July 1, 1988 Reaper Group General Boiler and City Hall Boller and other fined pressure vessels - Machinery: Policy N 3MO4272600 $1,000,000 per accident April 1, 1987 April 1, 1988 U,S, Fldellty and Guaranty Comps,; Automobile Insurance - liability $300,000 per Policy M W 071634222 accident, full compreMna ive and collision coverage June 30, 1986 June 30, 19.7 General Insurance Company of Merica: Airport liability and pmperty damage - $1,000,000 Policy Y APB 7504610 for each occurrence February 2, 1987 February 2, 1988 The Aetna Casually and Surety Surety Bond - Assistant City Manager - $40,000 Company: Bond Y 551061023 72 I 1 1 i f 1 i 1 i 1 1 i 1 1 1 1 1 1 1 City - Cape Girardeau, Missouri STATEMENT OF INSURANCE COVERAGE - CONTINUED For Year ended June 30. 1987 Issue Date E,L-11on Data Coupany And Policy Number Coverage August 28, 1986 Augmt 28, 1987 The Aetna Casualty and Surety Surety Bond - City Clerk - $40,000 Company; Bond Y 5100198828 March 30, 1982 March 30, 1988 The Aetna Casualty and $coaly Surety Bond - City Manager - $50,000 Cunpany; Bond J 551059212 October 1, 1986 October 1, 19.2 The Aetna Casualty and Surety Surety good - City Treasurer - $40,000 Co;ryany; Band Y 515049024BCA July 1, 1986 August 1, 1966 Westchester Flue Insurance Conpany; Blanket - arlove building and contents - $10,000,000 Policy Y 500-3258026 9oZ coinsurance; bodily and property damage - $1,50D,000/$1,500,Oo0, $1,000 deductible October 6, 1984 October 6, 1982 Wmtcheeter Fire Insurame Caopany; Sewage t ant plant insurance a trickling filter Policy i 500-381695-8 tank, effluent samplln, station, fired puoping station, laboratory, garage and shop, valuable papers, o..— cuumincinerator incinerator building, pumping stations - total coverage $4,936,451 August 10, 1986 August 10, 1982 National Casmlty Cmgany; Public official Liability for Mayor, members of the Policy Y FO 622491 City Council, other elected or appointed administrative officials, City Manager, Assistant City Manager, other appointed department. heads, City Attorney and Volunteer civic representatives serving 0 city boards and cmmtss tom. Does not include scMoln aLup.ri, hospital, head of police depaanKnc, head of fire department and judicial officials - $1,000,000/ $1,000,000, $2,500 retention July 1, 1986 July 1, 1982 United States Fidelity and Guaranty Mobile Property Flwter policy - radios Canpaoy; Policy 6 SP22225242 August 30, 1986 August 10, 1982 National Casualty Company; Policy Law Enforcement LLabiLity Insurance Policy, $1,000 Y PL 601452 each person, $1,000 each occurrence March 8, 1982 March 8, 1988 Cumerclal Union Insurance Cm;pany; Cape Girardeau Municipal Hand, —steel Instruments Polley g CRU450323 floater, $14,694 August 1, 1986 August 1, 1982 National Union Fire Insurance Company; Blanket - various buildings and contents - $10,000,000, Policy Y D-9028186 90X coinsurance; $25,000 deductible September 29, 1986 September 29, 1982 Aetna Casualty and Surety tarpon; Surety Bond - Library Employees - $2,500 Policy M 51 F 6514 BGA 73 I 1 1 1 i i i 1 1 i 1 1 i 1 1 1 i 1 1 City of Cape Gt—aeau, Missouri STATERENS OF INSO CE COVERAGE - WNTINUEO For Year ended June 30. 1987 Issue Date Emp iration Date Company and Policy Number Coverage May 8, 1987 Hay 8, 1968 Hanover Ivau[+nce Cor,,; Policy Cape Girardeau Public Library property damage and t Q-239-22-90 liability - $1,000,000 each occurrence, $1,000,000 aggregate May 8, 1987 May 8, 1988 H—moer Insurance Company; Policy Cape Girardeau Public Library buildings and ccents ♦ Q-239-22-90 - $1,000,000 limit, 90% —insurance on bu11d1n,., $160,000 limit, 90Z coinsurance on contents Me information presented on the Statement of Insura—e Coverage is presented for purposes of additional analysis and is not required statement of the City of Cape Girardeau, Missouri. This Information has not been subjected co the auditing procedures applied In [he I.—Intim. of he basic financial statement.. 11