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Home My WebLink About1985-1986.AuditReportREPORT ON INTERNAL ACCOUNTING CONTROL AND MEMORANDUM OF ADVISORY COMMENTS CITY OF CAPE GIRARDEAU, MISSOURI June 30, 1986 oFFlCF$IN CAPE 61MROEAU .d SGJ a, I. A. MtS50VW SPWNOFIEW, IWNOJS MRWAUREE WISCONs's W6fiNINGl4N. O.0 KERBER, ECK & BRAECKEL... CERTIFIED PUBLt ACCOUN7AWS 1221 BROADWAYA CAPE (ARRDEAU, MISSOURI 6a7ol Honorable Mayor, Board of Aldermen and City Manager City of Cape Girardeau, Missouri M 6MBEILS FMony,N IN UjT £ OE CE IITS VJBL.IC ACL(%1MAti TS 3161i�A15fiB We have examined the financialstatements of the City of Cape Girardeau, Missouri for the year ended June 30, 1986, and have issued our report thereon dated August 20, 1986. 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 exe- cuted 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 de- tected. 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. D 0 W 0 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 8 of this report that we believe result in more than a relatively low risk that errors or irregularities in amounts that would be r 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 9 to 10 of this report. These conditions were considered in determining the nature, timing and extent of the audit tests to he applied in our examination of June 30, 1986, financial. statements and this report does not effect our report on these financial statements dated August 20, 1986. We appreciate the courtesies and assistance provided our personnel during the course of the audit. if further information or clarification is 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 August 20, 1986 COT4ENTS ON INTERNAL ACCOUNTING CONTROL our examination was conducted during the period that the City was _ switching from one computer system to another. Severalof our comments may apply to the old system and may no longer be applicable under the new system. r CASH DISBURSEMENTS Bank reconciliations During our examinationit was noted that old outstanding checks are not being written off after a prescribed length of time. We recommend that all outstanding checks be written off after they have been outstanding for one year. Duplicate invoices We observed that duplicate invoices are not stamped paid or destroyed. It appears that prior to January 1, 1987, duplicate invoices were not being stamped paid but since that time invoices are being stamped. We recommend that the City continue this r procedure. C CASH RECEIPTS Daily cash listin%s Formal daily cash listings are not made by the person opening the mail. It is recommended that the 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. -5- CASH RECEIPTS - CONTINUED 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. CASH DISBURSEMENT TRANSACTIONS Safeguarding of checks It was observed that unused checks are readily accessible to any person in the office. To insure proper physical control, a system should be initiated to limit access to these checks. We recommend that unused checks be accessible only to the one responsible for preparing them. Check signing During our examination, we observed that one individual had custody of two of the keys used to operate the check signing machine. We recommend that the keys to the check signing machine be in the custody of two individuals. PAYROLL Personnel files We noted that some employees personnel files did not contain current W-4 forms or employee authorizations for extra Federal and state withholding. We recommend that employees files be maintained with a current W-4 in the file, and employee authorizations for any extra deductions from an employee's check. Approval of payroll During our examination, it was 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. -6- c Manual entries JOURNAL ENTRIES The City has authorization forms for the preparation of journal. ., entices and these forms provide for an explanation of the entry. We noted that a few of the manual adjustments lacked sufficient explanations which made it difficult to follow the transaction. + We recommend that all journal entries have sufficient supporting documentation or explanations attached to explain why the journal entry was made. TAXES RECEIVABLE Write-off of sewer taxes During our examination of sewer tax receivables, we noted that receivables were written off without formal approval. w We recommend that the City have a responsible official approve the write-off of all sewer tax receivables. Personal property, real estate and sewer taxes It was noted that delinquent taxes did not reconcile to the receivable balance shown by the City. We recommend that delinquent taxes be reconciled to the out- standing receivable balance on a monthly basis. Since the City r is converting to the accrual basis, this should be done monthly in the reconciliation of the account receivable general ledger balance to the account receivable subsidiary ledgers. PURCHASES '^ Returnedog ods During our examination, it was noted that goods had been ordered by the City, paid for and then subsequently returned by the department head without notifying the finance department. The finance department did not Obtain credit for the returned goods. r We recommend that department heads notify a responsible offi- cial in the finance department, by completing specified forms .. when goods have been returned. M -7- G COMPUTER. OPERATION + An essential characteristic of a good internal accounting control system is that each general ledger account should be verifiable by analyzing detail posting to that account. We noted that a couple of fund balances were changed during the year by changing year-to-date amounts rather than making an adjusting entry. We recommend adjustments to account balances be made by a journal + entry rather than waking changes to the year-to-date totals. I M. OTHER COMMENTS AND OBSERVATIONS m OTHER COMMENTS AND OBSERVATIONS Computer operations During our examination of information generated by the com- puter, we noted that certain reports could not be generated for the period ended June 30, after June 30 had passed. This presented problems in reconciling the year end balances. It is our understanding that with the new computer system reports as of a specified date can be generated at any time, so this should no longer present a problem. Cash accounts An essential characteristic of good internal accounting control is that in all accounts an entity has to be shown in a general ledger account. During our examination, we noted that several cash accounts pertaining to payroll withholding were not shown in a ledger account. Examples of these are the Employees Retirement Fund, the Custodian of Contributions, and the Employees Insurance Account. We noted that, since the City was on the cash basis, this was done to expense payroll taxes in the proper period. Since the City is converting to the accrual basis, the amounts will be charged as expenses in the proper period. The City has decided to close some of these accounts. We agree with this decision, because these accounts no longer serve a useful e purpose. -10- CI'PY OF CAPI, GIRARDEAU, MISSOURI Office of the City Manager Council Memorandum No. 204 December 11, 1986 The Honorable Mayor and Members of the City Council City of Cape Girardeau, Missouri Dear Mayor and Council Members: Subject: Annual Audit Management Letter The purpose of this Memorandum is to address each of the r econmenda tions made by Kerber, Eck and Br aeck el in their report on internal accounting control and memorandum of advisory comments. These comments were made relative to the 1986 annual audit report that this company previously submitted to the City Council. Tile accounting firm has noted in their report that this audit was conducted during the period when the City Finance Department was in the midst of converting its accounting system to the modified accrual system, and we were in the process of implementing a much more sophisticated data processing system. As a result, several of the comments in the report applied to the old system and/or resulted from a temporary adjustment to normal operating practices and internal controls. The following are the recommendations of the auditing firm and the appropriate response: 1. KEB RECOMMENDATION - That all outstanding checks be written off after they have been outstanding for one year. RESPONSE - We are in complete agreement with this recommendation and will include in our normal monthly bank reconciliation procedures the write-off of checks outstanding in excess of one year. 2. KEB RECOMMENDATION - That the City continue to stamp duplicate invoices paid as has been the practice since January 1, 1986. RESPONSE - This procedure has been in place since January and will be continued as recommended. 3. KEB RECOMMENDATION - That the person opening the mail prepare a daily cash receipt listing for comparison to subsequent bank deposits. RESPONSE - with the new cash remittance control recently placed on-line with the new computer system, mail receipts are entered on the computer system as the mail is opened, and an audit trail is printed listing all entries. Beginning January 1, 1987, the Finance Department secretary will begin making a list of any miscellaneous receipts encountered in sorting the City Hall mail. Council igenorandum on. 204 December 11, 1906 Page 2 KEB RECOMMENDATION - That for larger miscellaneous receipts, a copy of the check, bill of sale, or remittance advice be maintained with the miscellaneous receipt. RESPONSE - We agree fully with the recommendation and department staff have already been advised to attach the appropriate documentation to the miscellaneous receipt form. 5. KEB RECOMMENDATION - That unused checks be accessible only to the one responsible for preparing them. RESPONSE - This practice has been a part of the normal operating policies of the Finance Department previously, but compliance became lax during the hectic period of computer conversion as multiple test runs were initially required. Unused checks are presently stored in a locked cabinet in the Data Processing Office and inside the computer room itself, which is kept locked. KEB RECOMMENDATION - That the keys to the check signing machine be in the custody of two individuals. RESPONSE - The dual keys to the check signing machine have been kept separate in the custody of two individuals in the past, with the exception that the Deputy City Clerk had one combined set secured in the locked master key cabinet. Al though we feel this former practice was reasonable and adequate, we are taking additional steps to separate the remaining set of dual keys and will attempt to provide the backup necessary when those individuals with a key are absent. Should problems develop in maintaining this backup, we will revert to the former practice of keeping one set in the locked key cabinet inside the vault. 7. KEB RECOMMENDATION - That employee's files be maintained with a current W-4 in the file, and employee authorizations for any extra deductions from an employee's check be maintained as well. RESPONSE - We are in full agreement with this recommendation and this problem will be corrected as all employees are required to complete new W-4 forms early next year as part of the implementation of the Tax Reform Act. B. KEB RECOMMENDATION - That payrolls be approved by responsible official before they are disbursed. RESPONSE - This recommendation has been a part of standard policy within the department, but was neglected during the upheaval of the computer and accounting conversions. We do presently have in place procedures whereby the Staff Accountant initials the payroll register and the Account Clerk responsible for running the checks through the check signer initials the register after comparing a calculator tape of all checks run through the check signer with the totals on the check register. Council 11n_morandum No. 204 December 11, 1986 Page 3 KEB RECOMMENDATION - That all journal entries have sufficient supporting documentation or explanations attached to explain why the journal entry was made. RESPONSE - All journal entries are supported by an authorization document which notes the accounts being adjusted and the reasons therefore. we feel that generally this documentation is sufficiently adequate to meet this recommendation. Apparently, KEB staff found some journal entries that they had difficulty tracing. Therefore, we will increase our efforts to be diligent in attaching additional documentation, if appropriate, to further clarify the journal entries being made. 10. KEB RECOMMENDATION - That the City have a responsible official approve the write-off of all sewer tax receivables. RESPONSE - We agree completely with this recommendation. In the past City Ordinance provided an automatic write-off of sewer accounts more than two years old. The new sewer ordinance does not have this provision. Due to inherent problems in the utility billing system, i.e. estimated meter readings due to meter failure, bad weather, etc., plus the additional factor of converting data from a third party (Union Electric), there is a significantly large volume of adjustments required each month on sewer bills. We have currently in place a procedure for noting in a ledger all adjustments that are made by Finance Department staff. We will be evaluating this procedure over the first year of the utility billing system. Following our first year of experience and review of the practices of other cities with more experience in this area, we anticipate recommending some policy for handling adjustments and write-offs of utility receivables. 11. KEB RECOMMENDATION - That delinquent taxes be reconciled to the outstanding receivable balance on a monthly basis. RESPONSE - As the accounts receivable module of the general ledger accounting system is activated on the computer, this recommendation will be implemented. 12. KEB RECOMMENDATION - That department heads notify a responsible official in the Finance Department by completing a specified form when goods have been returned. RESPONSE - We agree completely with this recommendation and will be devising a form for use by the department heads beginning in January, 1987. 13. KEB RECOMMENDATION - That adjustments to account balances be made by a journal entry rather than making changes to the year-to-date totals. COunCLl Memorandum Pio. 204 December 11, 1986 Page 4 RESPONSE - This recommendation applies to the old computer system. All adjustments to account balances are currently made by journal entry as recommended. Relative to the "other comments and observations" made concerning computer operations and cash accounts, the computer system does generate reports for the immediate past accounting period, whether monthly or yearly. Relative to cash accounts, all payroll withholding accounts, petty cash, restricted cash accounts, and cash register change is recorded on the general ledger balance sheet with the new accounting system implemented July 1, 1986. As can be seen by review of this management letter, the City has implemented recommendations from previous audit reports. In addition, with the fullimplementation of the new computer system and the modified accrual accounting system, we will be moving quickly to a strong internal accounting control system. I believe that this report, together with the main audit report, can strongly assure City Council Members and the citizens of this community that its City government is being operated in an extremely sound and efficient basis. If City Council Members have any additional questions concerning this information, please feel free to contact me. R spe ctfully submitted, G Gary A. Eide City Manager GAE/egl Attachment cc: City Attorney .. FINANCIAL STATEMENTS AND AUDITORS' REPORT CITY OF CAPE GIRARDEAU, MISSOURI "� June 30, 1986 C O N T E N T S AUDITORS' REPORT FINANCIAL STATEMENTS COMBINED STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES COMBINED STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES - BUDGET (CASH BASIS) AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES COMBINED STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES - BUDGET (CASH BASIS) AND ACTUAL - DEBT SERVICE AND CAPITAL PRO- JECTS FUND TYPES COMBINED STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES - BUDGET (CASH BASIS) AND ACTUAL - SPECIAL ASSESSMENT FUND TYPES COMBINED STATEMENT OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES NOTES TO FINANCIAL STATEMENTS GENERAL FUND - STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANCES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL SPECIAL REVENUE FONDS - COMBINING STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES -2- Page 6 7 3 9 10 23 24 C 0 N T E N T S Page -3- PUBLIC HEALTH SPECIAL REVENUE FUND - STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANCES IN FUND BALANCE - BUDGET (CASH _ BASIS) AND ACTUAL25 MOTOR FUEL, TAX SPECIAL REVENUE FUND - STATEMENT ^ OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH FASTS) AND ACTUAL 26 MAUSOLEUM SPECIAL REVENUE FUND - STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) ^ AND ACTUAL CONVENTION/TOURISM SPECIAL REVENUE FUND - STATE- MENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAI. 28 + FEDERAL SHARED REVENUE SPECIAL REVENUE FUND - STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET '! (CASH BASIS) AND ACTUAL 29 DEBT SERVICE FUNDS - CODBINI.NG STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND + CHANGES IN FUND BALANCES 30 1905 - AIRPORT BOND - DEBT SERVICE FUND - ^ STATEMENT OF REVENUES COLLECTED, EXPENDI- TURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL 31 + 1984 - PUBLIC BUILDING BOND - DEBT SERVICE FUND - STATEMENT OF REVENUES COLLECTED, EXPENITTURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL 32 -3- C 0 N 'T E N T S -4- Page CAPITAL PROJECTS FUNDS - COMBINING STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND ` CHANGES IN FUND BALANCES 33 SEWER CONSTRUCTION FUND - STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE, - BUDGET (CASH BASIS) AND ACTUAL 34 CAPITAL IMPROVEMENTS FUND - STATIVIENT OF REVENUES u COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL 35 " MULTI-PURPOSE BUILDING CONSTRUCTION FUND - STATE- MENT OF REVENUE COLLECTED, EXPENDITURES PAID, AND CHANGES IN FUND BALANCE - BUDGET (CASH o BASIS) AND ACTUAL 36 SPECIAL ASSESSMENTS FUNDS - COMBINING STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND ` CHANGES IN FUND BALANCES 37 SPECIAL MERCHANT TAX/REDEVELOPMENT - STATEMENT '^ OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL 38 SPECIAL ASSESSMENTS - STREETS - STATFMENT OF REVENUES COLLECTFDq EXPENDITURES PAID AND CHANGF,S IN FUND BALANCE - BUDGET (CASH BASIS) ` AND ACTUAL 39 ENTERPRISE FUNDS - COMBINING STATEMENT OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES IN RETAINED EARNINGS - ALL ENTERPRISE FUNDS 40 NTBRNAL SERVICE FUNDS - COMBINING STATEMENT OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES IN RETAINED EARNINGS - ALL INTERNAL SERVICE FUNDS 41 -4- C O N T E N T S SUPPLEMENTAL INFORMATION STATEMENT OF FEDERAL FINANCIAL ASSISTANCE REPORT ON COMPLIANCE 14ITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONIIAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS 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 STATEMENT OF SEWER TAX COLLECTION AND RECONCILIATION STATEMENT OF INSURANCE COVERAGE -5- Page 43 44 45 48 49 KERBER, ECK & BRAECKEL CERTIFIED PUBLIC ACCOUNTANTS 1221 BROADWAY 0CMCcN IN MEM0ER5 AMEPIUN CME GIPNtDFAD, M155q)gl CAPE GIRA RD EAU, MISSOURI 63701 1NSTncTE OF CERoTIED NT, LWIa MmNocB, R M_IC ACC NTA` N SPRINGMEM, IWNOIS _ + MILWAUKEE WISNNSIN ""123 'Ne WASHINGTON, DC 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 and individual fund financial statements for the year ended June 30, 1986, as listed in the table of con- tents. Our examination was made in accordance with generally accepted audit- ing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circum- stances. + As is described in note A, the City's policy is to prepare its financial statements on the basis of cash receipts and disbursements; consequently, revenues are recognized when received rather that when earned, and expenses are recognized when paid rather than when the obligation is incurred. The City also maintains its accounting records on a single-entry basis and does not maintain fixed assets and long-term debt groups of accounts. Accordingly, + the accompanying financial statements are not intended to present financial position and results of operations in conformity with generally accepted accounting principles. In our opinion, except as noted above, the general purpose financial statements and the combining and individual fund statements referred to above present fairly the revenue collected and expenses paid of the City of Cape _ Girardeau, Missouri for the year ended June 30, 1986, on the basis of account- ing described in note A, which basis has been applied in a manner consistent with that of the preceding year. + 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 and individual fund financial statements. The accompanying financial information listed as supplemental information in the table of contents, which includes the Statement of Federal Financial Assistance, 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 and individual fund financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements + of each of the individual funds, taken as a whole. _ k-� I � Je�� Cape Girardeau, Missouri August 20, 1986 I I 1 1 1 1 1 I 1 1 I 1 I City of Cape Girardeau, pissouri WEBINFD STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended June 30, 1986 fC Cover mental Fund Types Totals Special Debt Capital Special (Memorandum Only) General Revenue Service Projects Assessment 1'38-3m$ REVENUES COLLECTED: Taxes and special assessments $6,035,800 $ 80,391 $ 1,657 $ - $ 72,708 $ 6,190,556 $ 5,926,331 Licenses and permits 490,653 498,671 - - - 989,324 905,116 Fines and forfeitures 410,462 - - - - 410,462 389,737 Interest received 107,748 140,781 14,026 347,677 16,775 627,007 549,036 Fees and service charges 622,653 134- - - 622,787 569,3B2 Revenue from other agencies 97,836 1,213,468 - 876,538 - 2,187,842 - Miscellanecus 54 019 117! - TTn-,ZrTis - - 13.98 ., 68,00 �..2 22,3.55 7944 Total revenues collected ,8/ �'3 , 2-T,= 103,465 11,095,919 10,5/5,396 EXPENDITURES PAID: General government 1,111,847 112,046 - - - 1,223,893 918,241 Public safety 3,789,114 - - - - 3,789,114 3,542,938 Highways and streets 1,401,705 145,964 - - - 1,547,669 1,449,647 Sanitation 1,203,205 - - - - 1,203,205 1,220,472 Health 62,698 92,695 - - - 155,393 159,221 Culture and recreation 842,043 14,764 - - - 856,807 786,815 Capital projects - - - 2,858,051 24,134 2,882,185 1,331,988 Debt service: Principal retirement - - 85,000 105,000 100,000 290,000 107,000 Interest and fiscal charges - - 255,419 258 630 19.11 533,159 112,289 Total expenditures paid ,4� 10,612 365,469 340,419 3� 1� 12,481,425 9,628,611 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (591,441) 1,567,976 (324,736) (1,997,466) (39,779) (1,385,446) 946,785 01HER FINANCING SOURCES (USES): Proceeds of general obligations bonds - - - - - - 5,018,727 Proceeds of revenue bonds - - - 11400,000 - 1,400,000 - Operating transfers in 1,031,278 20,000 271,057 542,666 50,000 1,915,001 844,015 Operating transfers out - (1,741,608) (152,656) (264,393) (2,158,657) (892,015) Total other financing sources (uses) 1,031,278 (1,721,608) 118,401 1,678,273 55_y 1,156,344 4,970,727 EXCESS (DEFICIENCY) OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPEND- ITURES PAID AND OTHER F'LNANCING USES 439,837 (153,632) (206,335) (319,193) 10,221 (229,102) 5,917,512 FUND BALANCE AT BEGINNING OF YEAR 1,307,313 1,575,569 225,257 4,895,893 54,727 8,058 759 2,141,247 FUND BALANCE AT END 0£ YEAR $1,747,150 $ 1,421,937 $ 18,922 $ 4,576,700 $ 64,948 $ 7,829,657 $ 6,058,759 The accompanying notes are an integral part of this statement. fC 1 1 1 1 1 i i I f 1 1 1 1 1 1 1 1 f 1 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES - BUDGET (CASH BASIS) AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES Year ended June 30, 1986 General Fund Special Revenue Fund 'Types Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES COLLECTED: Taxes $ 6,012,706 $6,035,800 $ 23,094 $ 79,700 $ 80,391 $ 691 Licenses and persd.Ls 439,800 490,653 50,853 490,000 498,671 8,671 Fines and forfeitures 408,000 410,462 2,462 - - - Interest received 98,000 107,748 9,748 120,600 140,781 20,181 Fees and service charges 637,500 622,653 (14,847) 100 134 34 Revenue from other agencies 117,090 97,836 (19,254) 1,206,627 1,213,468 6,841 Pliscellane ous 2252 54 019 7 767 - - - Total revenues collected .,,46 ,/ /5Y,34tl -1T97,M V,M EXPENDITURES PAID: General government 1,128,984 1,111,847 17,137 112,025 112,046 (21) Public safety 3,844,171 3,789,114 55,057 - - - Highways and streets 1,421,1.47 1,401,705 19,442 148,300 145,964 2,336 Sanitation 1,207,212 1,203,205 4,007 - - - Health 67,738 62,698 5,040 101,936 92,695 9,241 Culture and recreation Total 924.10 8,593,358 - �8�442 00�43 82 063 267 15 000 X14 7.6,.44 236 expenditures paid 8,410,612 1 7,261 365,4bv 11,792 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDI'T'URES PAID (834,010) (591,441) 242,569 1,519,766 1,567,976 48,210 OTHER FINANCING SOURCES (USES): Operating transfers in 1,031,278 1,031,278 - 20,000 203000 - Operating transfers out financing - S8 - - (1 741 608) (1 741 6-0088) - Total other sources (uses) 1,0 1,03I,L� EXCESS (DEFICIENCY) OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID AND OTHER FINANCING USES 197,268 439,837 242,569 (201,842) (153,632) 48,210 FUND BALANCE AT BEGINNING OF YEAR 1,307,313 1,307,313 1,575,569 1-575,569 _ FUND BALANCE AT END OF YEAR $1,504,581 $1,747,150 $242,569 $ 1,373,727 $ 1,421,937 $48,210 The accompanying nates are an integral part of this statement. 8- I I 1 i 1 1 1 1 1 1 1 f 1 1 1 f 1 1 1 City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES - BUDGET (CASE BASIS) AND ACTUAL - DEBT SERVICE AND CAPITAL PROJECTS FUND TYPES Year ended June 30, 1986 The accompanying notes are an Integral part of this statement. 9- Debt Service Fund Types Capital Projects Fund peTys Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES COLLECTED: Taxes and special assessments $ 1,400 $ 1,657 $ 257 $ - $ - $ - Interest received 17,433 14,026 (3,407) 337,100 34],67] 10,577 Revenue from other agencies 1,162,666 876,538 (286,128) Total revenues collected 18,833 15,683 (3,150) 1,499,766 1,224,215 (275,551) EXPENDITURES PAID: Capital projects - - - 3,446,030 2,858,051 587,979 Debt service: Principal retirement 85,000 85,000 - 105,000 105,000 - Interest and fiscal charges 255,420 255,419 _1 258.630 258,630 Total expenditures paid 340,420 340,419 1 -- 3,809,660 3,221,681 58],9]9 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (321,587) (324,736) (3,149) (2,309,894) (1,997,466) 312,428 OTHER FINANCING SOURCES (USES): Proceeds of revenue bonds - - - 1,405,279 1,400,000 (5,279) Operating transfers in (note J) 252,330 271,057 18,727 542,666 542,666 - Operating transfers out (note J) (156 000) (15265..6.) 3 344344 A2671 (245 666) (264 393) (18 727) Total other financing sources (uses) 96! 33 0 ill ,401 1,/01,275 1,678,17E 2 ,W ) EXCESS (DEFICIENCY) OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPEND- ITURES PAID AND OTHER FINANCING USES (225,257) (206,335) 18,922 (607,615) (319,193) 288,422 FUND BALANCE AT BEGINNING OF YEAR 225,25] 225,257 4.895,893 4,895,893 FUND BALANCE AT END OF YEAR $ - $ 18,922 $18,922 $ 4,288,278 $ 4,576,700 $ 288,422 The accompanying notes are an Integral part of this statement. 9- City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES - BUDGET (CASA BASIS) AND ACTUAL SPECIAL ASSESSMENT FUND TYPES Year ended June 30, 1986 REVENUES COLLECTED: Taxes and special. assessments Interest received Miscellaneous Total revenues collected EXPENDITURES PAID: Principal and interest Capital projects Total expenditures paid EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID OTHER FINANCING SOURCES: Operating transfers in EXCESS OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Soecial Assessment Fund Types The accompanying notes are an integral part of this statement. -IO- Variance - Favorable Budget Actual (Unfavorable) $ 79,200 $ 72,708 $(6,492) 13,400 16,775 3,37.5 11,000 13,982 2,982 103,600 103,465 (135) 120,500 119,110 1,390 25,720 24,134 1,586 146,220 143,244 _2,976 (42,620) (39,779) 2,841 50,000 50,000 7,380 10,221 2,841 54,727 54,727 $-62,107 $-64,948 $-2,841 The accompanying notes are an integral part of this statement. -IO- City of Cape Girardeau, Missouri COMBINED STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID ?ND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES Year ended June 30, 1986 ! Proprietary Fund Types Totals Internal (Memorandum Only) Enter rp Ise Service 1986 1985 OPERATING REVENUES COLLECTED: Fees charges (note K) $ 746,229 $1,128,352 $1,874,581 $1,935,817 _ Rents 1.42,239 - 142,239 153,838 Concession and equipment sales 46,482 - 46,482 43,630 Interest 29,473 1,803 31,276 24,034 Sale of property - 105,324 105,324 25,307 Miscellaneous 5,156 - 5,156 2,042 Revenue from other agencies 137,549 25,000 162,549 52,390 Total operating revenues collected 1,107,128 1,260,479 2,367,607 2,237,058 OPERATING EXPENSES PAID: Personal services 531,453 276,909 808,362 773,621 General operations 1.45,016 408,270 553,286 580,627 Contractual services 388,707 232,208 620,915 593,582 Miscellaneous expenses 4,782 18,657 23,439 6,254 Capital outlay 18,984 385,218 404,202 55,959 Projects 118,021 - 118,021 52,996 Total operating expenses paid 1,206,963 1,321,262 2,528,225 2,063,039 INCOME (LOSS) BEFORE OPERATING TRIANSFEES (99,835) (60,783) (160,618) 174,019 OTHER FINANCING SOURCES (USES) - - - - r OPERATING TRANSFERS IN 25,000 228,656 253,656 481000 OPERATING TRANSFERS OUT (10,000) - (10,000) - y, NET INCOME (LOSS) (84,835) 167,873 83,038 222,019 RETAINED EARNINGS AT BEGINNING OF YEAR 352,504 81,375 433,879 211,860 RETAINED EARNINGS AT HND OF YEAR $ 267,669 $ 249,248 $ 516,917 $ 433,879 The accompanying notes are an integral part of this statement. -11- c City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS June 30, 1986 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 Ac rounting 4 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 opera- tions of each fund are accounted for with a separate set of single-entry, .. cash basis accounts that comprise its cash position, revenues collected and expenditures paid. Since the City does not maintain double -entry records comprising its assets, liabilities, fund equity, revenues and expenditures, or expenses as appropriate, its accounting policies depart from generally accepted accounting principles, resulting in an opinion qualification. 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 r 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 as- sessments, expendable trusts or major capital projects) that are le- gally 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. -12- City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1986 NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 1. Fund Accounting - Continued Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or con- struction of major capital facilities (other than those financed by Proprietary Funds, Special Assessment Funds and Trust Funds). Special Assessment Funds - Special Assessment Funds are used to account for the financing of public improvements or services _ deemed to benefit the properties against which special assessments are levied. -13- PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for opera- tions (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 recov- ered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues collect- ed, 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 ac- count for the financing of goods or services provided by one de- partment to other departments of the City, on a cost -reimbursement basis. FIDUCIARY FUNDS Agency Funds - Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, 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 four Agency Funds set up for the City's library. -13- City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1986. NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 1. Fund Accounting - Continued FIDUCIARY FUNDS A description of the type of Agency Fund and the fund balances are as follows. 2. Fixed Assets and Long -Term Liabilities The City does not maintain account groups for fixed assets and long-term lia- bilities as required by generally accepted accounting principles. 3. Basis of Accounting Basis of accounting refers to whenrevenues 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, fiduciary funds and proprietary funds are accounted for using the cash basis of accounting. Their revenues are recognized when collected rather than when they are measurable and available as current assets, with expenditures being recognized when paid rather than when in- curred. This basis of accounting does not conform to generally accepted ac- counting principles. BEIM Fund Balance June 30, 1986 Library Operating Fund $169,851 Library Equipment Fund 28,592 Library Building Fund - Library Gifts and Memorials Fund 9,626 $208,069 2. Fixed Assets and Long -Term Liabilities The City does not maintain account groups for fixed assets and long-term lia- bilities as required by generally accepted accounting principles. 3. Basis of Accounting Basis of accounting refers to whenrevenues 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, fiduciary funds and proprietary funds are accounted for using the cash basis of accounting. Their revenues are recognized when collected rather than when they are measurable and available as current assets, with expenditures being recognized when paid rather than when in- curred. This basis of accounting does not conform to generally accepted ac- counting principles. BEIM 0 City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1986 NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 4. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data re- flected 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. 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 bet - wean 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 vear for all funds. ., 6. Budgets for all funds are adopted on a cash basis. Therefore, budgetary comparisons presented in this report are presented on this non -GAAP budgetary basis. Individual budget amendments made throughout the year were not material in relation to the total original appropriations which were amended. .. 5. Comparative Data ,.. Comparative total data for the prior year has been presented In the accompa- nying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative (i.e., presentation of prior year totals by fund type) data has not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. -15- City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED .� June 30, 1986. NOTE A - SUMMARY OF ACCOUNTING POLICIES - Continued 6. Total Columns on Combined Statements - Overview Total columns on the Combined Statements - Overview are captioned "Memoran- dum 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. NOTE B - PROPERTY TAX Property taxes attach as an enforceable lien on property. Taxes were levied on August 21., 1985, for collection during this fiscal year. The City bills and collects its own property taxes. The tax rates assessed at that time were as follows. ' City Revenue $.30/100.00 assessed valuation Library Tax .14/100.00 assessed valuation Public Health Tax .041100.00 assessed valuation Special Business District #2 (advalorem tax) .85/100.00 assessed valuation A schedule of delinquent taxes as of ,lune 30, 1986, is as follows. Year Personal Real Assessed Total Property Estate 1981 $ 3,084 $ 3,084 $ - .� 1982. 2,681 2,633 48 1983. 2,911 2,597 314 1984 11,016 3,090 7,926 1985 35,076 4,810 30,266 $54,768 $16,214 $38,554 Not included in the total above is $14,603 representing taxes which have been paid under protest. -16- 0 « City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED .. June 30, 1986 -17- NOTE C - LONG-TERM OBLIGATIONS The following is a summary of bond transactions of the City for the year ended June 30, 1986. « Bonds payable at July 1, 1985 $5,145,000 New bonds issued: 1986 Sewerage System Revenue Bonds 1,400,000 Bonds retired 250,000 « Bonds payable at June 30, 1986 $6,295,000 « Bonds payable at June 30, 1986, are comprised of the following individual issues. $4,895,000 1984 Public Building serial bonds due as follows. Year ending Interest Principal Interest June 30, Rate Due Due Total 1987 12.00% $ 115,000 $ 497,760 $ 612,760 1968 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 9.00 245,000 359,060 564,060 _ 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 $4,895,000 $5,937,782 $10,832,782 « Principal payments are made on November 1, and interest payments are made semi-annually on May 1 and November 1. -17- a City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1986 Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1 and September 1. -18- NOTE C - LONG-TERM OBLIGATIONS - Continued $1,400,000 1986 Sewerage System Revenue Bonds due as follows. Year ending Interest Principal Interest ' June 30, Rate Due Due Total 1987 9.00% $ 25,000 $ 111,798 $ 136,798 1988 9.00 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 459000 959347 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 1432523 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 1359000 22,800 157,800 2006 8.00 150,000 12,000 162,000 $1,400,000 $1,491,848 $2,891,848 Principal payments are made annually on March 1, and interest payments are made semi-annually on March 1 and September 1. -18- + City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1986 -19- NOTE C - LONG-TERM OBLIGATIONS - Continued The annual requirements to amortize all debt outstanding as of June 30, 1986, including interest payments of $7,429,630, are as follows. General Year ending Obligation Revenue June 30, Bonds Bonds Total 1987 $ 612,760 $ 136,798 $ 749,558 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 571,360 140,347 711,707 1994 567,073 1419523 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 $109832,782 $2,891,848 $13,724,630 $18,922 is available in the Debt Service Fund to service the general obliga- tion bonds. In the Sewer Fund, $110,904 cash is available. Of this, $53,857 is avail- able to service the Sewerage Revenue Bonds. The City is in compliance with all significant limitations and restrictions contained in the various bond indentures. -19- City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June :30, 1986 NOTE D - COMMI'TMEN'TS ^ Effective June 20, 1.984, the City of Cape Girardeau, Missouri entered into an agreement with Centerre Bank to purchase a truck costing $64,425. The terms of this agreement provides that the City of Cape Girardeau will make twenty (20) quarterly payments in the amount of $4,021 to Centerre Bank. Effective January 17, 1986, the City of Cape Girardeau, Missouri entered in- to an agreement with Centerre Bank to purchase a truck costing $99,476. The terms of this agreement provides that the City of Cape Girardeau will make eighteen (18) quarterly payments in the amount of $6,526 to Centerre Bank. NOTE E - PENSTON PLAN ^ The City participates in the LAGERS retirement system. LAGERS (Local Gov- ernment Employees Retirement System) is a statewide retirement plan for lo- calgovernment employees and is administered by a board of trustees which is completely independent of the City of Cape Girardeau, The City is responsi- ble 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, 1986, was approximately $330,437 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, 1985, the date of the latest available actuarial valuation, was $272,961. Due to the nature of the pian, 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 F - TNSTALLMENT SALE The City sold the 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 inter- est at the highest current investment rate received by the City. At June 30, 1986, $20,000 was receivable on this obligation. -20- City of Cape Girardeau, Missouri NOTES TO FINANCIAL. STATEMENTS - CONTINUED June 30, 1986 NOTE H - NOTE PAYABLE On June 22, 1982, the City Council authorized the City Manager to enter into a loan agreement in the total of $500,000 for the purpose of funding special assessment street improvement projects and major capital equipment replace- ment. One year demand notes have been utilized in this loan agreement. The balance of the note payable as of June 30, 1986, was $173,000. Special tax bills for the street improvements were issued to property owners which are used to help pay the debt. Street bills owed to the City at June 30, 1986, amounted to $176,570. -21- NOTE G - CASH IN BANK AND INVESTMENTS s A summary by fund of cash in bank and cash invested as of June 30, 1986, by fund is listed below. Cash Cash in Bank Invested Total General Fund $ 562,820 $1,184,330 $1,747,150 Sewage Fund 13,014 97,890 110,904 Health Fund 6,236 15,000 21,236 Motor Fuel Tax Fund 20,835 576,928 597,763 Airport Operating Fund 28,468 78,408 106,876 Mausoleum Fund 2,838 35,000 37,838 Convention/Tourism Fund 60,136 463,714 523,850 Federal Shared Revenue Fund 4,098 237,153 241,251 Debt Service Fund 18,922 - 18,922 Special Merchant Tax Fund 3,025 15,000 18,025 Golf Course Fund 49,889 - 49,889 Capital Improvement Fund (38,189) - (38,189) Multi -Use Center Construction Fund 43,537 3,433,729 3,477,266 Special Assessments Street Fund 46,923 - 46,923 Data Processing Fund 130,900 - 130,900 Fleet Management Fund 68,348 50,000 118,348 Sewer Construction Fund 13,064 1,124,558 1,137,622 $1,034,864 $7,311,710 $8,346,574 NOTE H - NOTE PAYABLE On June 22, 1982, the City Council authorized the City Manager to enter into a loan agreement in the total of $500,000 for the purpose of funding special assessment street improvement projects and major capital equipment replace- ment. One year demand notes have been utilized in this loan agreement. The balance of the note payable as of June 30, 1986, was $173,000. Special tax bills for the street improvements were issued to property owners which are used to help pay the debt. Street bills owed to the City at June 30, 1986, amounted to $176,570. -21- City of Cape Girardeau, Missouri NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 1986 NOTE I - INTEREST EXPENSE Interest cost totalling $581,816 was incurred during the year ended June 30, 1986. No interest cost was capitalized as part of the cost of as- sets constructed during the period. NOTE J - INTERFUND TRANSFERS Included in transfers from the Sewer Construction Fund to the Capital Improvements Fund is $245,666, which represents sewer construction costs for the fiscal years ending June 30, 1985 and June 30, 1986, of $53,339 and $192,327, respectively. NOTE K - SEWER BILLINGS Prior to June 30, 1986, the City's policy was to bill sewage customers once per year in the month of June. During 1986, the City changed from a yearly billing to a monthly billing for its sewage customers. -22- -23- City of Cape Girardeau, Missouri GENERAL FUND STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 1986 1985 Variance - Favorable Budget Actual (Unfavorable) Actual REVENUES COLLECTED: Taxes $6,012,706 $6,035,800 $ 23,094 $5,699,530 Licenses and permits 439,800 490,653 50,853 412,827 Fines and forfeitures 408,000 410,462 2,462 389,737 Interest received 98,000 107,748 9,748 146,084 Fees and service charges 637,500 622,653 (14,847) 5582830 Revenue from other agencies 117,090 97,836 (19,254) 66,794 Miscellaneous 46,252 54,019 7,767 - Total revenues collected 7,759,348 7,819,171 59,823 7,273,802 EXPENDITURES PAID: General government 1,128,984 1,111,847 17,137 938,371 Public safety 3,844,171 3,789,114 55,057 3,542,938 Highways and streets 1,421,147 1,401,705 19,442 1,256,372 Sanitation 1,207,212 1,203,205 4,007 1,220,472 Health 67,738 62,698 5,040 60,685 Culture and recreation 924,106 842,043 82,063 753,405 Total expenditures paid 8,593,358 8,410,612 182,746 7,772,243 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (834,010) (591,441) 242,569 (498,441) r OTHER FINANCING SOURCES: Operating transfers in 1,031,278 1,031,278 - 759,015 EXCESS OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID 197,268 439,837 242,569 260,574 FUND BALANCE AT BEGINNING OF YEAR 1,307,313 1,307,313 - 1,046,739 FUND BALANCE AT END OF YEAR $1,504,581 $1,747,150 $242,569 $1,307,313 -23- 1 I 1 1 f f 1 1 1 f 1 1 1 1 1 1 I i I City of Cape Girardeau, Missouri SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AM CHANGES IN FUND BALANCES Year ended June 30, 1986, with Comparative Totals for the year ended June 30, 1985 Convention/ Federal Shared Totals Health Motor Fuel Mausoleum Tourism Revenue 1986 1985 REVENUES COLLECTED: Taxes and special assessments $ 80,391 $ - $ - $ - $ - $ 80,391 $ 70,233 Licenses and permits - - - 498,671 - 498,671 492,289 Interest received 1,041 54,078 2,570 51,777 31,315 140,781 133,576 Fees and service charges 134 - - - - 134 10,552 Revenue from other agencies 561,841 651,627 1,213,468 1,179,367 Total revenues collected 81,566 615,919 2,570 550,448 682,942 1,933,445 1,886,017 EXPENDITURES PAID: General goverment - - - 112,000 46 112,046 60,827 Highways and streets - 145,964 - - - 145,964 193,275 Health 92,187 - 508 - - 92,695 98,536 Culture and recreation 14,764 14.764 33,410 Total expenditures paid 92,187 145,964 508 112,0 14,810 365.469 386,048 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (10,621) 469,955 2,062 438,448 668,132 1,567,976 1,499,969 OTHER FINANCING SOURCES (USES): Operating transfers in 20,000 - - - - 20,000 5,000 Operating transfers out (510,023) (538,286) (693,299) (1,741,608) (892,015) EXCESS (DEFICIENCY) OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID AND OTHER FINANCING USES 9,379 (40,068) 2,062 (99,838) (25,167) (153,632) 612,954 FUND BALANCES AT BEGINNING OF YEAR 11,857 637,831 35,776 623,687 266,418 1,575,569 962,615 FUND BALANCES AT END OF YEAR $ 21,236 $ 597,763 $ 37,838 $ 523,849 $ 241,251 $ 1,421,937 $1,575,569 24- -25- City of Cape Girardeau, Missouri PUBLIC HEALTH SPECIAL REVENUE FUND STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 1986 1985 Variance - Favorable Budget Actual (Unfavorable) Actual REVENUES COLLECTED: Taxes and special assessments $ 79,700 $ 80,391 $ 691 $ 70,233 Interest received 550 1,041 491 1,266 Fees and service charges 100 134 34 10,552 + Total revenues collected 80,350 81,566 1,216 82,051 EXPENDITURES PAID: Health 100,928 92,187 8,741 98,450 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (20,578) (10,621) 9,957 (16,399) OTHER FINANCING SOURCES: Operating transfers in 20,000 20,000 - 5,000 EXCESS (DEFICIENCY) OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID (578) 9,379 9,957 (11,399) FUND BALANCE AT BEGINNING OF YEAR 11,857 11,857 - 23,256 FUND BALANCE AT END OF YEAR $ 11,279 $ 21,236 $ 9,957 $ 11,857 -25- C City of. Cape Girardeau, Missouri MOTOR FUEL TAX SPECIAL REVENUE FUND ' STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 c -26- 1986 1985 Variance - + Favorable Budget -Actual (Unfavorable) Actual REVENUES COLLECTED: + Interest received $ 50,500 $ 54,078 $ 3,578 $ 64,945 Revenue from other agencies 555,000 561,841 6,841 537,160 Total revenues collected 605,500 615,919 10,41.9 602,105 EXPENDITURES PAID: Highways and streets 148,300 145,964 2,336 193,275 EXCESS OF REVENUES COLLECTED OVER EXPENDITURES PAID 457,200 469,955 129755 408,530 OTHER FINANCING (USES): Operating transfers out (510,023) (510,023) - (397,223) EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES + PAID AND OTHER FINANCING USES (52,823) (40,068) 12,755 11,607 FUND BALANCE AT BEGINNING OF YEAR 637,831 637,831 - 626,224 FUND BALANCE AT END OF YEAR $ 585,008 $ 597,763 $12,755 $ 637,831 -26- M -7.7- City of Cape Girardeau, Missouri MAUSOLEUM SPECIAL REVENUE FUND STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FIND BALANCE - BUDGET (CASA BASIS) AND ACTUAL Year ended dune 30, 1986, with Comparative Actual Amounts for year ended dune 30, 1985 1986 1985 Variance - ., Favorable Budget Actual (Unfavorable) Actual REVENUES COLLECTED: Interest received $ 2,050 $ 2,570 $ 520 $ 3,306 EXPENDITURES PAID: Health 1008 508 500 86 EXCESS OF REVENUES COLLECTED OVER EXPENDITURES PAID 1,042 2,062 1,020 3,220 FUND BALANCE AT BEGINNING OF YEAR 35,776 35,776 32,556 ^" FUND BALANCE AT END OF YEAR $36,818 $37,838 $1,020 $35,776 -7.7- -28- City of Cape Girardeau, Missouri CONVENTION/TOURISM SPECIAL REVENUE FUND ' STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 1986 1985 Variance - _ Favorable Budget Actual (Unfavorable) Actual REVENUES COLLECTED: Licenses- and permits $ 490,000 $ 498,671 $ 8,671 $492,289 Interest received 45,500 51,777 6,277 29,280 Total revenues collected 535,500 550,448 14,948 521,569 EXPENDITURES PAID: General government 112,025 112,000 25 60,777 EXCESS OF REVENUES COLLECTED OVER EXPENDITURES PAID 423,475 438,448 14,973 460,792 OTHER FINANCING (USES): Operating transfers out (538,286) (538,286) - - EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID AND OTHER FINANCING USES (114,811) (99,838) 14,973 460,792 FUND BALANCE AT BEGINNING OF YEAR 623,687 623,687 - 162,895 FUND BALANCE AT END OF YEAR $ 508,876 $ 523,849 $14,973 $623,687 -28- City of Cape Girardeau, Missouri FEDERAL SHARED REVENUE SPECIAL REVENUE FUND STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 M 1986 1985 _ Variance - Favorable Budget Actual (Unfavorable) Actual REVENUES COLLECTED: Interest received $ 22,000 $ 31,315 $9,315 $ 34,779 _ Revenue from other agencies 651,627 651,627 - 642,207 Total revenues collected 673,627 682,942 9,315 676,986 EXPENDITURES PAID: General government - 46 (46) 50 Culture and recreation 1.5,000 14,764 236 —33,410 ,. Total expenditures paid 15,000 14,810 190 --33,.,60 EXCESS OF REVENUES COLLECTED OVER EXPENDITURES PAID 658,627 668,132 9,505 643,526 OTHER FINANCING (USES): Operating transfers out (693,299) (693,299) (494,792) EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID AND OTHER FINANCING USES (34,672) (25,167) 91505 148,734 FUND BALANCE AT BEGINNING OF YEAR 266,418 266,418 117,684 M FUND BALANCE AT END OF YEAR $ 231.,746 $ 241,251 $9,505 $ 266,418 _2g- NOTE: 1985 TOTALS REPRESENT THE 1965 AIRPORT BOND FUND ONLY. THE 1984 PUBLIC BUILDING BOND FUND WAS NOT ORGANIZED UNTIL JULY 1, 1985. -30- City of Cape Girardeau, Missouri DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 .. 1984 Public 1965 Totals Building Bond Airport Bond 1986 1985 r REVENUES COLLECTED: Taxes and special assessments $ - $ 1,657 $ 1,657 $ 70,489 Interest received 1.95 13,831 14,026 22,544 _ Total revenues collected 195 15,488 15,683 93,033 a EXPENDITURES PAID: Debt service: Principal retirement - 85,000 85,000 80,000 ,. Interest and fiscaL charges 252,330 3,089 255,419 5,832 Total expenditures paid 252,330 88,089 340,419 85,832 EXCESS (DEFICI.ENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (252,135) (72,601) (324,736) 7,201 OTHER FINANCING SOURCES (USES): Operating transfers in 271,057 - 271,057 - Operating transfers out - (152,656) (152,656) _ EXCESS (DEFICIENCY) OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID AND OTHER FINANCING USES I8,922 (225,257) (206,335) 7,201 .. FUND BALANCE AT BEGINNING OF YEAR - 225,257 225,257 218,056 FUND BALANCE AT END OF YEAR $ 18,922 $ - $ 18,922 $225,257 NOTE: 1985 TOTALS REPRESENT THE 1965 AIRPORT BOND FUND ONLY. THE 1984 PUBLIC BUILDING BOND FUND WAS NOT ORGANIZED UNTIL JULY 1, 1985. -30- -31- City of Cape Girardeau, Missouri 1965 AIRPORT BOND - DEBT SERVICE FUND STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 1986 1985 Variance - Favorable Budget Actual (Unfavorable) Actual REVENUES COLLECTED: Taxes and special assessments $ 1,400 $ 1,657 $ 257 $ 70,489 Interest received 17,433 13,831 (3,602) 22,544 _ Total revenues collected 18,833 15,488 (3,345) 93,033 EXPENDITURES PAID: Debt service: _ Principal retirement 85,000 85,000 - 80,000 Interest and fiscal charges 3,090 3,089 1 5,832 Total expenditures paid 88,090 88,089 1 85,832 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (69,257) (72,601) (3,344) 7,201 OTHER FINANCING (USES): Operating transfers out (156,000) (152,656) 3,344 - EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID AND OTHER FINANCING USES (225,257) (225,257) - 7,201 FUND BALANCE AT BEGINNING OF YEAR 225,257 225,257 218,056 FUND BALANCE AT END OF YEAR $ - $ - $ - $225,257 -31- City of Cape Girardeau, Missouri 1984 PUBLIC BUILDING BOND - DEBT SERVICE FUND STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986 REVENUES COLLECTED: Interest received EXPENDITURES PAID: Debt service: Interest EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID GIBER FINANCING SOURCES: Operating transfers in EXCESS OF REVENUES COLLECTED AND OTHER €INANCING SOURCES OVER EXPENDITURES PAID FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Variance - Favorable Budget Actual (Unfavorable) $ - $ 195 $ 195 252,330 252,330 - (252,330) (252,135) 195 252,330 271,057 18,727 - 18,922 18,922 $-$18_922 $18,922 -32- 1 1 f 1 1 f 1 1 1 1 1 1 t 1 f I 1 i 1 City of Cape Girardeau, Missouri CAPITAL PROJECT'S FUNDS COMBINING STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCES Year ended June 30, 1986, with Comparative Totals for the year ended June 30, 1985 -33- Multi -Purpose Sewer Capital Building Totals Construction Improvements Construction 1986 198 REVENUES COLLECTED: Interest received $ 9,395 $ - $ 338,282 $ 347,677 $ 224,526 Revenue from other agencies 876,538 876,538 989,633 Loral revenues collected 9,395 876,538 338,282 1,224,215 1.,214,159 EXPENDITURES PAID: Capital projects 26,106 1,143,763 1,688,182 2,858,051 1,181,407 Interest - - 258,630 258,630 117,673 Principal retirement 105,000 105,000 Total expenditures paid 26,106 1,143,763 2,051,812 3,221,681 1,299,080 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (16,711) (267,225) (1,713,530) (1,997,466) (84,921) OTHER FINANCING SOURCES (USES): Proceeds of general obligations bonds - - - - 5,018,727 Proceeds of revenue bonds 1,4009000 - - 1,400,000 - Operating transfers in (note J) - 337,666 205,000 542,666 80,000 Operating transfers out (note J) (245,666) (18,727) (264,393) Total other financing sources (uses) 1,154,334 337,666 186,273 1,678,273 5,098,727 EXCESS (DEFICIENCY) OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID AND OTHER FINANCING USES 1,137,623 70,441 (1,527,257) (319,193) 5,013,806 SEND BALANCES AT BEGINNING OF YEAR (108,630) 5,004,523 4,895,893 (117,913) FUND BALANCES AT END OF YEAR $1,137,623 $ (38,189) $ 3,477,266 $ 4,576,700 $4,895,893 -33- City of Cape Girardeau, Missouri SEWER CONSTRUCTION FUND STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986 -34- Variance - Favorable Budget Actual (Unfavorable) REVENUES COLLECTED: Interest received $ 16,700 $ 9,395 $ (7,305) EXPENDITURES PAID: Capital projects 226,106 26,106 200,000 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (209,406) (16,711) 192,695 OTHER FINANCING SOURCES (USES): Proceeds of revenue bonds 1,405,279 1,400,000 (5,279) Operating transfer out (note J) (245,666) (245,666) - EXCESS OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID AND OTHER FINANCING USES 950,207 1,137,623 187,416 FUND BALANCE AT BEGINNING OF YEAR - - FUND BALANCE AT END OF YEAR $ 950,207 $1,137,623 $187,416 -34- a City of Cape Girardeau, Missouri CAPITAL IMPROVEMENTS FUND STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 1986 1985 Variance - '� Favorable Budget Actual (Unfavorable) Actual REVENUES COLLECTED: Taxes from other sources $1,162,666 $ 876,538 $(286,128) $ 989,633 EXPENDITURES PAID: Capital projects 1,420,296 1,143,763 276,533 1,060,350 (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (257,630) (267,225) (9,595) (70,717) OTHER FINANCING SOURCES: Operating transfers in (note J) 337,666 337,666 - 80,000 EXCESS (DEFICIENCY) OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID 80,036 70,441 (9,595) 9,283 FUND BALANCE AT BEGINNING OF YEAR (108,630) (108,630) (117,913) FUND BALANCE AT END OF YEAR $ (28,594) $ (38,189) $ (9,595) $ (108,630) -35- -36- City of Cape Girardeau, Missouri MULTI-PURPOSE BUILDING CONSTRUCTION FUND STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL .� Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 1986 1985 Variance - Favorable Budget Actual (Unfavorable) Actual REVENUE COLLECTED: Interest received $ 337,100 $ 338,282 $ 1,182 $ 224,526 EXPENDITURES PAID: Capital projects 2,025,734 1,688,182 337,552 121,057 Interest 258,630 258,630 - 117,673 Principal retirement 105,000 105,000 - Total expenditures paid 2,389,364 2,051,812 337,552 238,730 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (2,052,264) (1,713,530) 338,734 (14,204) OTHER FINANCING SOURCES (USES): Proceeds of general obligation bonds - - - 5,018,727 Operating transfers in 205,000 205,000 - - Operating transfers out - (18,727) (18,727) - EXCESS (DEFICIENCY) OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID (1,847,264) (1,527,257) 320,007 59004,523 FUND BALANCE AT BEGINNING OF YEAR 5,004,523 5,004,523 - - FUND BALANCE AT END OF YEAR $ 3,157,259 $ 3,477,266 $320,007 $5,004,523 -36- -37- City of Cape Girardeau, Missouri SPECIAL ASSESSMENTS FUNDS COMBINING STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 Special Merchant Special Tax/ Assessments - Totals Redevelopment Streets 1986 1985 REVENUES COLLECTED: Taxes and special assessments $12,386 $ 60,322 $ 72,708 $ 86,079 Interest received 1,250 15,525 16,775 22,306 Miscellaneous 13,982 - 13,982 - Total revenues collected 27,618 75,847 103,465 108,385 .. EXPENDITURES PAID: Principal and interest - 119,110 119,110 52,500 Capital projects 24,134 - 24,134 32,908 r Total expenditures paid 24,134 119,110 143,244 85,408 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID 3,484 (43,263) (39,779) 22,977 i OTHER FINANCING SOURCES: Operating transfers in 50,000 50,000 - EXCESS OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID 3,484 6,737 10,221 22,977 FUND BALANCE AT BEGINNING YEAR 14,541 40,186 54,727 31,750 FUND BALANCE AT END OF YEAR $18,025 $ 46,923 $ 64,948 $ 54,727 -37- -38- City of Cape Girardeau, Missouri SPECIAL MERCHANT TAX/REDEVELOPMENT STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 1986 1985 Variance - ,� Favorable Budget Actual (Unfavorable) Actual REVENUES COLLECTED: Taxes and special assessments $15,200 $1.2,386 $(2,814) $11,513 Interest received 850 1,250 400 1,239 Miscellaneous 11,000 13,982 2,982 Total revenues collected 27,050 27.618 568 12,752 EXPENDITURES PAID: + Capital. projects 25,720 24,134 1,586 9,744 EXCESS OF REVENUES COLLECTED OVER EXPENDITURES PAID 1,330 3,484 2,154 3,008 r FUND BALANCE AT BEGINNING OF YEAR 14,541 14,541 11,533 FUND BALANCE AT END OF YEAR $15,871 $18,025 $ 2,154 $14,541 -38- r City of Cape Girardeau, Missouri SPECIAL ASSESSMENTS - STREETS STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL .. Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 r 1986 1985 Variance - r Favorable Budget Actual (Unfavorable) Actual REVENUES COLLECTED: Special assessments $ 64,000 $ 60,322 $(3,678) $74,566 Interest received 12,550 15,525 2,975 21,067 Total revenues collected 76,550 75,847 (703) 9.5,633 EXPENDITURES PAID: Principal and interest 120,500 119,110 1,390 52,500 Capital projects - - 23,164 Total expenditures paid 120,500 119,110 1.,390 75,664 EXCESS (DEFICIENCY) OF REVENUES COLLECTED OVER EXPENDITURES PAID (43,950) (43,263) 687 29,969 OTHER FINANCING SOURCES: Operating transfer in 50,000 50,000 EXCESS OF REVENUES COLLECTED AND OTHER FINANCING SOURCES OVER EXPENDITURES PAID 6,050 6,737 687 19,969 FUND BALANCE AT BEGINNING OF YEAR 40,186 40,186 - 20,217 FUND BALANCE AT END OF YEAR $ 46,236 $ 46,923 $ 687 $40,186 -39- I I 1 1 1 i 1 1 1 1 1 i 1 1 1 1 1 i 1 City of Cape Girardeau, Missouri ENTERPRISE FUNDS COMBINING ST'ATEMEN'T OF REVENUES COLLECTED, EXPENSES PAID AND CIUVICES IN RETAINED EARNINGS - ALL ENTERPRISE FUNDS Year ended June 30, 1986, with Comparative Totals for the year ended June 30, 1985 40- Airport Golf Course Totals Sewage Far Operating Fun tl Funtl 1986 1985 OPERATING REVENUES COLLECTED: Fee charges (note K) $ 597,443 $ 18,372 $130,414 $ 746,229 $ 934,907 Rents - 73,470 68,769 142,239 153,838 Concession and equipment sales - - 46,482 46,482 43,630 Interest 21,628 5,769 2,056 29,473 23,783 Miscellaneous 1,824 1,1.42 2,190 5,156 2,042 Revenue from other agencies 5,279 132,270 137,549 52,390 Total operating revenues collected 626,174 231,043 249,911 1,107,128 1,210,590 OPERATING EXPENSES PAID: Personal services 368,963 30,463 132,027 531,453 520,267 General operations 72,361 11,814 60,841 145,016 134,477 Contractual services 291,963 56,141 40,603 388,707 360,508 Miscellaneous expense 948 1,035 2,799 4,782 42818 Capital outlay 6,256 - 12,728 18,984 19,728 Projects 3,619 114,402 118,021 52,996 Total operating expenses paid 744,110 213,855 248,998 1,206,963 1,092,794 INCOME (LOSS) BEFORE OPERATING TRANSFERS (117,936) 17,188 913 (99,835) 117,796 OPERATING TRANSFERS IN - - 25,000 25,000 23,000 OPERATING TRANSFERS OUT - (100) (10,000) NET INCOME (LOSS) (117,936) 17,188 15,913 (84,835) 140,796 RETAINED EARNINGS AT BEGINNING OF YEAR 228,640 89,688 33,976 352,504 211,708 RETAINED EARNINGS AT END OF YEAR $ 110,904 $106,876 $ 49,889 $ 267,669 $ 352,504 40- -41- City of Cape Girardeau, Missouri INTERNAL SERVICE FUNDS ` COMBINING STATEMENT OF REVENUES COLLECTED, EXPENSES PAID AND CHANGES IN RETAINED EARNINGS - ALL INTERNAL SERVICE FUNDS s Year ended June 30, 1986, with Comparative Actual Amounts for year ended June 30, 1985 Data Fleet Totals Processing Management 1986 1985 OPERATING REVENUES COLLECTED: Fee charges $200,265 $928,087 $1,128,352 $1,000,910 Sale of property 73,550 31,774 105,324 25,307 Interest 185 1,618 1,803 251 Revenue from other agencies - 25,000 25,000 - Total operating ` revenues collected 274,000 986,479 1,260,479 1,026,468 OPERATING EXPENSES PAID: Personal services 41,824 235,085 276,909 253,354 General operations 3,437 404,833 408,270 446,150 Contractual services 9,913 222,295 232,208 233,074 Miscellaneous expense 18,450 207 18,657 1,436 Capital outlay 273,823 1119395 385,218 36,231 Total operating ' expenses paid 347,447 973,815 1,321,262 970,245 INCOME (LOSS) REPORT OPERATING .. TRANSFERS (73,447) 12,664 (60,783) 56,223 OPERATING TRANSFERS IN 203,656 25,000 228,656 25,000 NET INCOME 130,209 379664 167,873 81,223 RETAINED EARNINGS AT BEGINNING OF YEAR 691 80,684 81,375 152 RETAINED EARNINGS AT END OF YEAR $130,900 $118,348 $ 249,248 $ 81,375 -41- SUPPLEMENTAL INFORMATION Reimbursed balance or Expenses Amount Chargeable meets/ Federal Grantor/Pass-Through Grantor/Program Titures Unpaid at June 30, 1986 To Local Funds June 30, 1986 Department of the Treasury Direct Program Federal Revenue Sharing ,109 $ - $ 241,251 Department of Housing and Urban Development Passed through Missouri Department of Economic Development Community Development Block Grant CDA -052-68g 83 -CO -02 ,394 - 327 Community- Development block Grant CDA -082-03; 81 -ND -04,802 - (1,310) Rental Rehabilitation Program BR -84 -SG -290103 50 (50) Total U. S. Department of Housing and Urban Dem 246 - (1,033) Department of Transportation Direct Program Federal Aviation Administration Air Traffic Services DTFA09-84-R-20054 1715 (15,555) Air Development Aid 3-29-0013-01 1333 - (80,108) Air Development Aid 6-29-0013-06 - - (]],513) Air Development Aid 6-29-0013-07 ,946 - (19,978) Passed through Missouri Department of Public Safety Police Traffic Services 85-02-1 1095 - (20,198) Police Traffic Services 86-02-5 1400 - (3,700) Sobriety Checkpoints 85-03-19 577 - _ Sobriety Checkpoints 86-03-23 793 - _ Passed through Missouri Highway and Transportation Commission Public Taxi Coupon Transportation Program MO -18-X003 CG 1133 - (113,606) MO -18-X004 CG ,635 (112,430) Total U. S. Department of Transportation ,627 (15,555) (427,533) Department of Interior Passed through Miss our! Department of Natural Resources Historical Survey of Downtown Cape Cirdrdeau, Missouri ,789 378 ,771 $(15,555) $(186,937) REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TO MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri, for the year ended June 30, 1986, and have issued our report thereon dated August 20, 1986. 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 Governmental Organ- izations, Programs, Activities and Functions, issued by the U. S. General Accounting Office; the Single Audit Act of 1984; and the provisions of OMB Circular A-128, Audits of State and Local Governments and, accordingly, includ- ed 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 trans- actions 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, includ- ing those pertaining to financial reports and claims for advances and reim- bursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. In our opinion, for the year ended June 30, 1986, 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. The results of our tests indicate that for the transactions and records tested the City of Cape Girardeau, Missouri, complied with the laws and regula- tions referred to above. Our testing was more limited than would be necessary to express an opinion on whether the City of Cape Girardeau, Missouri, admin- istered 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 trans- actions 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 August 20, 1986 -44- 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 We have examined the general purpose financial statements of the City of Cape Girardeau, Missouri, for the year ended June 30, 1986, and have issued our report thereon dated August 20, 1986. 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 Govern- mental 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 admin- istrative 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 'Cash disbursements 'Payroll °Inventory control Property and equipment *General ledger -45- 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 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 disclos- ed 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 Condit- ions 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, 1986, the City of Cape Girardeau, Missouri, expended 80% 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, determin- ing 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. -46- 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 With respect to the internal control systems used solely in administering the other nonmajor Federal financial assistance 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 the flow of transactions through the accounting system. Our study and evalua- tion 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 prelimi- nary review of the systems. 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 August 20, 1986 -47- a4:11 $797,079 12,446 $809,525 $537,239 168,690 103,596 $809,525 City of Cape Girardeau, Missouri STATEMENT OF SEWER TAX COLLECTIONS AND RECONCILIATION Year ended June 30, 1986 ' Outstanding tax bills, June 30, 1985 Additions to tax bills (note K) r TOTAL BILLS TO BE ACCOUNTED FOR TAXES COLLECTED DURING YEAR Add: Discounts $ 10,666 Adjustments 2,709 Cancellations 166,842 180,217 + Less: Penalties levied during year 11,527 OUTSTANDING TAX BILLS, June 30, 1986 TOTAL BILLS ACCOUNTED FOR, as above a4:11 $797,079 12,446 $809,525 $537,239 168,690 103,596 $809,525 -49- City of Cape Girardeau, Missouri STATEMENT OF INSURANCE COVERAGE For year ended June 30, 1986 Issue Date Expiration Date Company and Policy Number Coverage December 13, 1985 December 13, 1986 General Accident Insurance Company Police Revolver and Pistol Club - NRA Club liability of America; Policy fr GLOO64314-03 $400,000 July 28, 1985 July 28, 1986 Northland Insurance Company; Bodily injury and property damage - City Swimming Policy # FGL19977 Pool, Capaha - $300,000, bodily injury; $10,000 property damage January 29, 1986 January 29, 1987 Northland Insurance Company; Bodily injury and property damage - City Swimming Policy R FCL19991 Pool, Central - $300,000, bodily injury; $10,000 property damage July 31, 1985 July 31, 1986 NaLlonal Flood Insurance Program; Trickling filter building - Southeast Corner, Pacific Policy v FL -1-9370-8790-4 Street and Missouri Pacific Railroad - $100,000 July 31, 1985 July 31, 1986 National Flood Insurance Program; Garage and shop flood insurance - Southeast Corner, Policy # FL -1-9370-8793-8 Cooper Street and Missouri Pacific Railroad - $90,200 July 31, 1985 July 31, 1986 National Flood Insurance Program; Pump station - Southeast Corner, Pacific Street and Policy R FL -1-9370-8791-2 Missouri Pacific Railroad - $100,000 July 31, 1985 July 31, 1986 National Flood Insurance Program; Laboratory building - Southeast Corner, Cooper Street Policy # FL -1-9370-8789-6 and Missouri Pacific Railroad - $100,000 July 31, 1985 July 31, 1986 National Flood Insurance Program; Vacuum/incinerator building - Southeast Corner, Pacific Policy 4FL-1-9370-8792-0 Street and Missouri Pacific Railroad - $100,000 August 1, 1985 August 1, 1986 CNA Insurance; Policy F 5610441 (86) Workmen's compensation and employers liability - statutory October 11, 1985 October 11, 1986 Hartford Steam Boiler Inspection Sewage treatment plant - $1,000,000 and Insurance Company; Policy #SL -9223237-12 July 1, 1985 July 1, 1988 Kemper Croup General Boiler and City Nall boiler and other fixed pressure vessels - Machinery; Policy li 3%M04272600 $1,000,000 per accident April 1, 1986 April 1, 1987 U. S. Fidelity and Guaranty Company; Automobile insurance - liability $300,000 per Policy # BAP 066668162 accident full comprehensive and collision coverage June 30, 1985 June 30, 1986 Employers Casualty Company/Seesing Airport liability - $2,000,000 for each occurrence, and Company Insurance Policy $500,000 single limit it APB 001043 -49- -50- City of Cape Girardeau, Missouri STATIMUGII OF INSURANCE COVERAGE - CONTINUED For year ended June 30, 1986 Issue Date Expiration Date Company and Policy Number Coverage February 24, 1982 Continuous The Aetna Casualty and Surety Surety Bond - Assistant City Manager - $40,000 Company; Bond S 51561023 August 28, 1985 Continuous The Aetna Casualty and Surety Surety Bond - City Clerk - $405000 Company; Bond # 5100198828 March 30, 1981 Continuous The Aetna Casualty and Surety Surety Band - City Manager - $50,000 Company. Bond # 51559712 October 1, 1974 Continuous The Aetna Casualty and Surety Surety Bond - City Treasurer - $40,000 Company; Band ft 51549024 July 1, 1985 July 1, 1986 The Aetna Casualty and Surety Public Employee Blanket Bond - $10,000 Company; Bond # 51F6486BCA July 31, 1985 July 31, 1986 Westchester Fire Insurance Company; Blanket - various building and contents - $103000,000 Policy it 500-3758026 90% coinsurance; bodily and property damage - $1,500,000/$1,500,000, $1,000 deductible October 6, 1984 October 6, 1967 Westchester Fire Insurance Company; Sewage treatment plant insurance on, trickling filter Policy # 500-381695-8 tank, effluent sampling station, flood pumping station, laboratory, garage and shop, valuable papers, vacuum incinerator building, pumping stations - total coverage $4,936,451 August 10, 1985 August 10, 1986 Great Southwest Fire Insurance Public official liability for Mayor. members of the Company; Policy 9 APO -03130 City Council, other elected or appointed administrative officials, City Manager, Assistant City Manager, other appointed departments heads, City Attorney and volunteer civic representatives serving on city boards and commissions. Does not include school, airport, hospital, head of police department, head of fire department and judicial officials - $1,000,000/$1,000,000, $2,500 retention November 24, 1985 July 1, 1986 United States Fidelity and Guaranty Mobile Property Floater policy - radios Company; Policy n SP782061 -50- I I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I City of Cape Girardeau, Missouri STATEMEWI OF INSURANCE COVERAGE - CONTINUED For year ended June 30, 1986 Issue Date Expiration Date Como any and Policy Number Coverage August 10, 1985 August 10, 1986 National Casualty Company; Policy Law Enforcement Liability Insurance Policy, $1,000 P PL501501 each person, $1,000 each occurrence March 8, 1986 March 8, 1987 Commercial Union Insurance Company; Cape Girardeau Municipal Band, musical instruments Policy # CKU450323 floater, $14,694 September 9, 1985 September 10, 1986 Transamerica Insurance Group; Building and personal property insurance for the Policy #18868852 Humane Socity, 80% coinsurance on all buildings and 80% on personal property December 8, 1985 December 8, 1986 The St. Paul; Policy # 685ND1418 Comprehensive general liability protection for Cape River Heritage Museum, Inc., $100,000 event limit -51-