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HomeMy WebLinkAbout1997-1998.AuditReport.CourtFINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT CITY OF CAPE GIRARDEAU MUNICIPAL COURT pfflimms Begley, Janssen, Young & Birk, LC CERTIFIED PUBLIC ACCOUNTANTS 2103 THEMIS ST- CAPE GIRARDEAU, MISSOURI 63701 TELEPHONE (573)334-2845 FAX (573)334-4338 PARTNERS JOHN R. JANSSEN, CPA JENNII-LH WES[RICH. CPA TEHHY R. BEGLEY, CPA 1NUEPENDENT AUDITORS' REPORT JEFF UNTERREINER. CPA LAWRENCE E. YOUNG, CPA CATHERINE A. W[IIIF. CPA KELVIN W. BIRK. CPA + Honorable Mayor and Members of the City Council Cape Girardeau, Missouri We have audited the accompanying financial statements of the Cape 4 Girardeau Municipal Court, a department of the City of Cape Girardeau, Missouri as of June 30, 1998 and for the year then ended. These departmental financial statements are the responsibility of the City of Cape Girardeau's management. Our responsibility is to express an opinion on the departmental financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the departmental financial statements are free of material misstatement. An audit includes examining, on a test basis, + evidence supporting the amounts and disclosures in the departmental financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by + management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. + As discussed in note Al, the financial statements of the Cape Girardeau Municipal Court are intended to present the financial position and results of operations of only that portion of the + General Fund of the City of Cape Girardeau that is attributable to the Municipal Court. In our opinion, the departmental financial statements referred to above present fairly, in all material respects, the financial position of the Cape Girardeau Municipal Court as of June 30, 1998 and the results of its operations for the year then ended in conformity with generally accepted accounting principles. BEGLEY, JANSSEN, YOUNG & BIRK, LC Cape Girardeau, Missouri �. December 3, 1998 City of Cape Girardeau, Missouri MUNICIPAL COURT BALANCE SHEET June 30, 1998 r r r r ASSETS Cash in bank $10,440 LIABILITIES Appearance bonds payable $10,440 THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT. F City of Cape Girardeau, Missouri MUNICIPAL COURT r STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL {GAAP BASIS) r FOR THE FISCAL YEAR ENDED JUNE 30, 1998 r VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) r REVENUES Court costs 570,P0(} $69,487 ($613} Fines 580,000 611,339 31,339 _ TOTAL REVENUES 650,000 686,826 30,826 .. EXPENDITURES Personnel services 195,579 179.315 16,264 Materials and supplies 1,050 1,230 (180) Contractual S."ces 13,260 15,752 (2,492) r General operating 2,900 2,285 615 TOTAL EXPENDITURES 212,789 198,582 _ 14207 + EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 437,211 482,244 45,033 OTHER FINANCING SOURCES (USES) Transfer to City of Cape r Girardeau general fund (437,211)1482,244) (45,033) TOTAL OTHER FINANCING SOURCES RUSES) (437,211) (482,244) (45033) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES w OVER EXPENDITURES AND OTHER FINANCING USES $- $- $- r THE NOTES TO THE FINANCIAL STATEMENTS ARE AN INTEGRAL PART OF THIS STATEMENT. Cape Girardeau Municipal Court NOTE TO FINANCIAL STATEMENTS June 30, 1998 NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .. A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. L The Reporting Entity The Cape Girardeau Municipal Court is a department of the City of Cape Girardeau, Missouri. The Cape Girardeau Municipal Court, for financial purposes, includes all of the funds relevant to the operations of the Cape Girardeau Municipal Court. Ilie financial statements presented herein do not include agencies which have been formed under applicable stale laws of separate and distinct units of government apart from the Cape Girardeau Municipal Court. A separate report has been issued on the general purpose financial statements of the City of Cape Girardeau, Missouri. Reference should be made to that report for additional information. The Governmental Accounting Standards Board (GASB), in order to establish criteria for determining which organizations should be included in a governmental financial reporting entity, issued GASB Statement No. 14, "The Financial Reporting Entity". The GASB's intention was to provide a basis for making comparisons nuong units of government, to reduce the possibility of arbitrary exclusion or inclusion of organizations in financial reports, and to enable financial statement users to identify the operations for which governmental entities are responsible. The GASB concluded that the basic criteria for including other organizations in a governmental unit are financial accountability and fiscal dependency. The Municipal Court is not a separate entity from the City of Cape Girardeau and its operations are blended with the City in the City's general purpose financial statements. The Municipal Court has determined that no other outside agency meets the above criteria and, therefore, no other agency has been included as a component unit in the Municipal Court's financial statements. 2. Fund Accounting The accounts of the Municipal Court 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. M c Cape Girardeau Municipal Court NOI L TO FINANCIALS FA "I EMENTS June 30, 1998 NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .. 2. Fund Accounting — Continued 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 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. 3. Basis o,£Accoumin, 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 the intermediary collecting governments and are recorded as liabilities and reductions of revenue when they are measurable and their validity seems certain. Expenditures are generally recognized tinder 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.