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29
CITY OF FAIRHOPE, ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1985
NOTE 8 REVENUE BONDS, NOTES AND WARRANTS PAYABLE - PROPRIETARY FUNDS
(continued)
September
30,
1985
1984
(c) Water, gas and wastewater revenue
bonds series 1978 dated December
1, 19'/8, interest rate 6% on
$75,000 and 6.2% on $285,000,
payable semi annually, principal
payable December 1, 1487 through
December 1, 1994
$
$
Nonrcurrent
360,000
360,000
Total
360,000
360,000
(d) Water Revenue Bond, dated April 4,
1982, issued to the United States
of America, Farmers Home Adminis-
tration, interest rate 5%, interest
payable January 1, remaining principal
payable Januaryy 1, 1985 through
January 1, 202Z
Current
10,000
7,000
Non current
2,168 100
2,1
2,185,000
2,192,000
(e) Water Revenue Bond, dated May 5, 19831
issued to the United States of America,
Farmers Home Administration, interest
rate 5%, interest payable January 1,
principal payments start January 1,
1986, bond matures January 1, 2022
Current
3,000
-
Non current
335,000
338,000
338,000
338,000
TOTAL BONDS, NOTES AND WARRANTS
PAYABLE - PROPRIETARY FUNDS
$3,951,801
$4,121,075
NOTE 9 GENERAL OBLIGATION LONG TERM DEBT
The general obligation refunding warrants warrants dated 6-1-83,
recreational and various purpose warrants and general obligation public
improvement bonds are general obligations of the City of Fairhope,
Alabama and are secured by a pledge of its full faith and credit.
The general obligation recreational warrants and interest are being
retired with the funds from the Recreation Capital Improvement Fund in
the Recreation Fund.
The general obligation, public improvement bonds and $115 500 of the
general obligation various purpose warrants (dated 12-1-74) principal
and interest are being retired with funds from the 1977-1978 Public
Improvement Assessment Fund.
The mortgage payable to Central Bank of the South is secured by certain
parcels of land located at the City of Fairhope Municipal Airport.
$350,062 of the general obligation warrants dated June 1, 1983,,will be
retired from the 1982 Public Improvement Assessment Fund.
PARKER, FICKLING, HARTMANN A HANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS---
30
CITY OF FAIRHOPE, ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1985
NOTE 10 SUMMARY OF ALL LONG TERM DEBT OUTSTANDING - ALL FUNDS
September 30,
1985
1984
PROPRIETARY FUNDS
General obligation electric warrants $
139,000
$ 181,000
First mortgage revenue bonds - 1961
series
315,000
360,000
Water Revenue Bond (dated 5-5-83)
338,000
338,000
Water Revenue Bond (dated 4-4-82)
2,178,100
2,192,000
First mortgage revenue bonds - 1972
series
530,000
570,000
Special obligation revenue bonds -
1973 series
80,000
100,000
Revenue bonds - 1978 series
360,000
360,000
Note payable - Central Bank of the
South
11,701
20,075
Total Proprietary Funds
3,951,801
4,121,075
GOVERNMENTAL FUND TYPES
General obligation refunding warrants
(dated 4-1-82)
-250,000
290,000
General obligation recreational warrants
(dated 7-1-76)
155,000
175,000
General obligation various purpose
warrants (dated 12-1-78)
275,000
330,000
General obligation public improvement
bonds (dated 12-1-78)
160,000
200,000
General obligation warrants
(dated 6-1-83)
1,355,000
1,395,000
Mortgage payable, Central Bank of the South
12,000
15,000
Total Governmental Fund Types
21*207,000
2,405,000
TOTAL LONG TERM DEBT OUTSTANDING -ALL FUNDS
$6,158,801
$6,526,075
- •-•-- - PARKER.PICKLING, HARTMANN♦1 HANAK. P.C. CERTIFIED PUBLIC
31
CITY OF FAIRHOPE, ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1985
NOTE 11 CHANGES IN GENERAL LONG TERM DEBT
The following is a summary, for all funds, of all long term debt
transactions of the City for the year ended September 30, 1985:
Note & (Memorandum
Revenue General Obligation Mortgage Only)
Bonds Warrants Bonds Payable Total
Balance at October 1,
1984 $3,920,000 $2,371,000 $ 200,000 $ 35,075 $6,526,075
New bonds and warrants
issued
Principal retired (118,900) (197,000) (40,000) (11,374) (367,274)
BALANCE AT SEPTEMBER 30,
1985 $3,80111100 $2,174,000 $ 169,000 $ 23,701 $6,158,801
PARKER, FICKIING, HARTMANN & NANAK. P.C. CERTIFIED PUBLIC
CITY OF FAIRHOPE, ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1985
NOTE 12 SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
The following is a summary of debt service requirements to matur-
ity of general long term debt of the General, Special Revenue, Debt
Service and Special Assessment Funds as of September 30, 1985, in-
cluding interest payments:
Year
Ending
September
30,
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
General
Obligation
Warrants
Principal
Interest
165,000
156,084
195,000
145,822
195,000
133,335
195,000
120,670
205,000
107,816
100,000
95,870
75,000
88,620
80,000
82,433
45,000
75,633
45,000
71,718
50,000
67,758
50,000
63,258
60,000
58,708
65,000
53,188
75,000
47,175
75,000
40,238
80,000
33,300
90,000
25,900
90,000
17,575
100,000
9,250
General
Obligation Bonds
Principal
Interest
40,000
8,240
40,000
5,920
40,000
3,580
40,000
1,200
TOTALS $2,035,000 $1,494,351 $ 160,000 $ 18,940
PARKER, FICKLING, HARTMANN 6 HANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
32
(Memorandum Only)
Mortgage Payable
Total
Central Bank of
Principal
The South
Total
and
Principal Interest
Principal
Interest
Interest
$ 12,000 $ 960
$ 217,000
$ 165,284
$ 382,284
235,000
151,742
386,742
235,000
136,915
371,915
235,000
121,870
356,870
205,000
107,816
312,816
100,000
95,870
195,870
75,000
88,620
163,620
80,000
82,433
162,433
45,000
75,633
120,633
45,000
71,718
116,718
50,000
67,758
117,758
50,000
63,258
113,258
60,000
58,708
118,708
65,000
53,188
118,188
75,000
47,175
122,175
75,000
40,238
115,238
80,000
33,300
113,300
90,000
25,900
115,900
90,000
17,575
107,575
100,000
_ Li
109,250
$ 12,000 $ 960
$2,207,000
$1,514,251
$3,721,251
FARKEM, FICKUNG, K4ATMANN A HANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
33
CITY OF FAIRHOPE, ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1985
NOTE 13 INSURANCE COVERAGE
The Utility Funds casualty insurance coverage on electrical sub
stations, natural gas facilities, water and wastewater facili-
ties is included in a blanket policy with the Governmental Funds
general fixed assets building and facilities.
Comprehensive general liability $ 500,000
Natural gas liability $ 500,000
Vehicle bodily injury and property
damage liability $ 20,000
Crime and employee dishonesty $ 25,000
Public officials errors and omissions liability $1,000,000
Excess public officials errors and omissions
liability $1,000,000
NOTE 14 PROPERTY, PLANT AND EQUIPMENT - PROPRIETARY FUNDS
Changes during the year in property, plant and equipment were as
follows:
Natural
Water and
Electric
Gas
Wastewater
Fund
Fund
Fund
Balance, October 1, 1984
$331377,296
$2,003,235
$7,861,239
Additions:
Self constructed:
Labor
36,260
29,550
20,914
Material
149,053
31,403
41,371
Vehicles and equipment
purchases
21,565
8,221
6,867
Retirement of equipment
(1,340)
BALANCE, SEPTEMBER 30, 1985
$3,584,174
$2,072,409
$7,929,051
_.--PARMA. FICKLINa,MAF.TMANNItHANAK, PC. CEATIFIED PUBLIC ACCOUNT
34
CITY OF FAIRHOPE, ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1985
NOTE 15 INFORMATION REQUIRED BY BOND INDENTURES
Electric
Fund
A. The following information provided
by City employees:
Natural Water and
Gas Wastewater
Fund Fund
Number
of
customers 3,887
4,532 5,726
Number
of
metered customers 3,887
4,532 5,726
Number
of
unmetered customers -
- -
Number
of
wastewater connections
3,203
B. All requirements of the respective bond indentures appeared to have been com-
plied with by the City.
NOTE 16 SALARIES - PROPRIETARY FUNDS
The following is a summary of employees' salaries by Utility Fund for
the years ended September 30, 1985 and 1984:
Natural
Water and
Electric
Gas
Wastewater
Fund
Fund
Fund
Year ended September 30, 1985:
Total salaries
$325,990
$251,800
$277,147
Less:
Salaries capitalized for plant
additions
(36,260)
(29,550)
(20,914)
Amount of salaries charged to operations
$289,730
$222,250
$256,233
Year ended Se tember 30, 1984:
ota salaries
$282,875
$234,476
$249,513
Less:
Salaries capitalized for plant
additions
(26,901)
(27,459)
(17,190)
Amount of salaries charged to operations
$255,974
$207,017
$232,323
- ._. - PAAKIIR, FICKLINC. MAKTM"M A NANAK. P.C. CERriFIiiv PUBLIC
35
CITY OF FAIRHOPE, ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1985
NOTE 17 ELECTRIC ENERGY FURNISHED OTHER FUNDS
The selling price of electric energy delivered without charge by
the Electric Fund to various other funds (except the Water and
Wastewater Fund), boards and offices of the City of Fairhope is
charged to the Electric Fund's operations as electric energy
furnished other divisions of the City of Fairhope. The Water and
Wastewater Fund purchases at cost from the Electric Fund, electric
energy it receives.
NOTE 18 DEPRECIATION
The rates used in recording depreciation of plant and equipment of
the utility funds are annual straight line rates as follows:
Electric system 3.0%
Natural gas system 2.5%
Water and wastewater system 2.5%
Vehicles and equipment 12.5% to 33.3%
Depreciation expense on assets acquired from contributions in aid
of construction from U. S. Grants, customers and developers is
transferred to those respective capital accounts on the balance
sheet and not retained earnings.
NOTE 19 INDIVIDUAL FUND INTERFUND RECEIVABLE AND PAYABLE BALANCES
Individual fund interfund receivable and payable balances at
September 30, 1985 were as follows:
Interfund
Interfund
Receivable
Payable
General Fund
$ 28,431
$ -
Special Revenue Funds:
Recreation Operating Fund
-
8,212
Special Assessment Funds
835
3,576
Capital Project Fund
5,796
Enterprise Funds:
Electric Fund
-
261,784
Natural Gas Fund
185,967
4,458
Water and Wastewater Fund
71,044
2,451
TOTALS
$286,277
$286,277
-- - PARKER.FICKLINO, HARTMANN& NANAK. P.C. CERTIFIED PUBLIC
36
CITY OF FAIRHOPE, ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1985
NOTE 20 LITIGATION
The City of Fairhope at September 30, 1985 was named as a defendant in
the following law suits:
The City of Fairhope's attorney has referred the following cases to
the insurance companies for the City of Fairhope. These cases which in-
volve damage to persons or property and generally allege negligence on
behalf of the City are being handled by the City's insurance carrier:
Cecile V. Rogers vs City of Fairhope; Lois E. Velte vs City of Fairhope;
Susan Dreading vs City of Fairhope, and, Wilma Carpenter vs City of
Fairhope.
The suit filed by Philip S. Stenzel and Joan F. Murphy as plaintiffs,
naming the City of Fairhope as defendant, alleges that the City of Fair -
hope has breached a written agreement entered into by the parties on the
construction and permanent easement granted by the plaintiffs to the
City of Fairhope over real property owned by the plaintiffs for the con-
struction and maintenance of a sewer line by the City. The Plaintiffs
are claiming that the City has allowed erosion and slough off to occur to
Plaintiff's injury, and are requesting as damages the sum of $30,000.
The City has filed a counterclaim in the amount of $15,000 due to the
fact that the plaintiffs have not allowed the agents, servants, or em-
ployees of the City to maintain a concrete flume running from its sewer
plant down to the natural stream bed and out to Mobile Bay.
Other cases handled by the City's attorney are James E. Nowell vs
City of Fairhope and it's Harbor Board and John C. Glover and
Margaret G. Glover vs Board of Adjustment of the City of Fairhope and
the City of Fairhope. The former only requests costs and attorney's fees
while the latter does not specifically request damage.
Also, the City of Fairhope filed suit vs Fairhope Clay Products to col-
lect an unpaid bill for natural gas usage in the amount of $24,484. The
defendants have filed a counterclaim against the City for $100,000 for an
alleged failure of the City to pass along refunds to the defendants,
which were paid to the City by United Gas Pipe Line Company.
PARKER, FICKLIH... MARTM/..4H A HkK^K. P C. CC ATIFIE0 PUBLIC ACCOUNT
37
CITY OF FAIRHOPE, ALABAMA
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1985
NOTE 21 RETAINED EARNINGS ADJUSTMENT
A retro active adjustment as of October 1, 1983 was made to retained
earnings to reclassify the cumulative amount of depreciation expense
that had been charged to retained earnings in previous years on assets
acquired from contributions in aid of construction from U.S. Grants,
customers and developers to those respective capital accounts.
The adjustment does not affect the amounts of net income (loss) re-
ported on previous years statements of income or the total capita-
lazation on each fund's balance sheet.
The adjustment was made to reflect charges to retained earnings for
depreciation expense only on assets acquired with the City's own funds.
-- PARKER, FICKLING, HARTMANN & HANAK. RC. CERTIFIED
SUPPORTING SCHEDULES
ADDITIONAL FINANCIAL INFORMATION
INDIVIDUAL FUND
FINANCIAL STATEMENTS
PARKER, FICKLING, HARTMANN B HANAK, PC CEPTIFIFn OUBLIC ACCOUNTANTS
38
CITY OF FAIRHOPE, ALABAMA
GENERAL FUND
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
1985
1984
CASH
On hand
$ 200
$ 225
In banks (Note 5)
354,391
224,404
Total cash
_ 354,591
22_ 44,,6_29
RECEIVABLES
Federal Emergency Management Agency
1211737
-
Street improvement assessments
5,522
8,323
Miscellaneous receivables
8,997
4,537
Due from other funds of the City of Fairhope:
Airport Capital Project Fund
-
10,000
Street Drainage Capital Project Fund
5,796
-
Natural Gas Fund
4,458
5,526
Public Improvement Assessment Fund
2,741
52,250
Water and Wastewater Fund
2,451
5,754
Recreation Fund
8,212
8,621
Electric Fund
4,773
12,291
Allowance for doubtful accounts
(5,077)
(31980)
Total receivables
50,610
103,322
TOTAL ASSETS
$ 405,201
$ 327,951
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable, trade $ 102,996 $ 49,757
Payroll taxes payable 7,619 6,511
Employees' retirement payable 8,394 7,048
Sundry payables 30 1,276
Due to other funds of the City of Fairhope:
State Gasoline Tax Fund - 252
TOTAL LIABILITIES 119,039 64,844
FUND BALANCE 286,162 263,107
TOTAL LIABILITIES AND FUND BALANCE $ 405,201 $ 327,951
The notes to the financial statements are an integral part of this statement.
PARKER, FICKLING, HARTMANN a HANAK. P.C. CERTIFIED PUBLIC ACCOUNT
39
CITY OF FAIRHOPE, ALABAMA
GENERAL FUND
STATEMENT OF CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
FUND BALANCE AT BEGINNING OF YEAR
General Fund Revenues
General Fund Expenditures
Excess revenues over expenditures
FUND BALANCE AT END OF YEAR
1985
2630107
2,103,827
2,080,772
23,055
$ 286,162
1984
177, 95
2,033,592
19�4788800
85,712
$ 263,107
T
The notes to the financial statements are an integral part of this statement.
-. - —PARKER, FICKLING, NAA-MANN a NANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS • -
40
CITY OF FAIRHOPE, ALABAMA
GENERAL FUND
STATEMENT OF REVENUES WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985
1984
Revised
Over (Under)
Actual
Budget
Budget
Actual
LOCAL TAXES
Real estate
$ 319,343
$ 319,000
$ 343
$ 312,800
Automobile tags and tax
56,810
55,000
1,810
52,094
Beer tax
46,320
43,000
3,320
45,503
Liquor tax
23,247
21,700
1,547
21,625
Wine tax
8,294
8,300
(6)
8,018
Dog tax
369
_ 375
(6)
354
Total
454,383
447,375
7,008
440,394
LICENSES AND PERMITS
Business licenses
152,677
151,000
1,677
132,266
Beer and liquor licenses
9,068
14,000
(4,932)
8,170
Job license fees
2,845
2,800
45
1$07
Building permits and
inspection fees
17,054
16,600
454
11,309
Rezoning permits
2,312
2,500
(188)
1,430
Insurance company franchise
46,433
46,433
-
51,806
Cable T. V. franchise
9,699
9,699
-
8,920
Total
240,088
243,032
2,944
215,408
FINES AND FORFEITURES
138,208
135,000
3,208
100,567
STATE OF ALABAMA
Share of state liquor profits
12,910
12,777
133
12,651
ABC store sales tax
8,292
9,000
(708)
9,537
Financial institution excise tax
24,567
15,000
9,567
14,922
Motor vehicle licenses
2,754
2,500
254
3,265
Oil production privilege tax
4,401
4,200
201
3,525
Total
52,924
43,477
9,447
43,900
UNITED STATES GOVERNMENT
Federal Emergency Management
Agency
12,737
-
12,737
- I
-
PARKER, FICKLING, NARTMANN • NANAK. P.C.
41
CITY OF FAIRHOPE, ALABAMA
GENERAL FUND
STATEMENT OF REVENUES WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985
1984_
Revised
Over Under
Actual
Budget
Budget
Actual
INTEREST AND RENTS
Interest - bank deposits
$ 17,719
$ 15,600
$ 2,119 $
21,060
Interest - street assessments
208
200
8
340
Municipal airport lease
7,286
8,000
(714)
6,049
Municipal pier lease
13,084
13,000
84
3,124
Fishing dock stall rentals
10,275
15,000
(4,725)
16,090
Civic Center building - rentals
25,898
24,000
1,898
23,227
Other rents
7,712
7,156
556
3,724
Airport mineral lease
-
-
-
6,900
Total
82,182
82,956
774)
80,514
CHARGES FOR SERVICES
Telephone collection fee
5,000
5,000
-
9,333
Subdivision fees
854
719
135
538
Burglar alarm fees
2,750
2,700
50
3,780
Sanitation collection
119,066
119,250
(184)
116,743
Dog pound fees
1,193
1,100
93
2,000
Total
128,,863
128,769
94
132,394
OTHER REVENUES
Beach revenue
21,863
21,000
863
17,724
Donations:
Civic Center
10,100
10,100
-
10,000
Trees
3,120
2,885
235
4,663
Sale of fixed assets
9,848
9,848
-
1,000
Grant, South Alabama Regional
Planning Commission
3,972
3,972
-
4,164
Insurance claims
3,445
2,856
589
3,928
Sales of materials and
miscellaneous income
6,094
3,529
2,565
6,936
Total
58,442
54,190
4,252
48,415
TRANSFERS FROM OTHER FUNDS
State Gasoline Tax Funds 20,000 - 20,000 72,000
Electric Fund 458,000 458,000 - 440,000
Natural Gas Fund 458,000 458,000 - 440,000
Water and Wastewater Fund - - - 20,000
Total 936,000 916,000 20,000 972,000
TOTAL REVENUES $2,103,827 $2,0502799 $ 53,028 $2,033,592
��
The notes to the financial statements are an integral part of this statement.
_.. MARKYR ►ICKI.1NG,NARTMANN A NAPIAN. >•.C.CEF'+FIE.1, PV&L,t ACGUJnT ANTS
42
CITY OF FAIRHOPE, ALABAMA
GENERAL FUND
STATEMENT OF EXPENDITURES WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
GENERAL GOVERNMENT
Salaries:
Mayor and council $
City clerk and assistants
Building inspector, janitor
mechanics and Civic Center
City attorney
City judge
Convention, travel and continuing
education
Audit fees
Legal fees
General supplies and maintenance
Office supplies and postage
Telephone
Computer service
Publications in newspaper
Dues and memberships
Insurance, casualty
Colony rent
Payroll taxes
Employees' retirement
Employees' medical insurance
Municipal airport operating expenses
Professional services
Employees' Christmas bonus
Miscellaneous
Shuttle bus expense
Freight
Musiac
City computer expense
Maintenance - Adult Recreation Center
Maintenance - Fishermans Wharf
Maintenance - Church St. Building
Maintenance - Civic Center -
Church Street
Christmas decorations
Municipal code
Trustee fees
Municipal election expense
Chamber of Commerce
Bad' debts
Capital purchases - general
Capital purchases - Civic
1985 1984
Revised Over (Under)
Actual Budget. $udget Actual
18,400
$ 18,400
$ - $
9,600
67,840
68,432
(592)
61,022
44,148
44,129
19
419254
7,140
7,140
-
7,140
7,646
7,646
-
7,213
14,858
13,000
1,858
11,355
4,575
4,575
-
4,270
4,276
5,000
(724)
4,046
27,364
27,000
364
22,009
17,173
14,121
3,052
10,614
18,942
18,000
942
16,498
1,552
1,600
(48)
1,652
1,460
1,500
(40)
777
6,520
4,440
2,080
4,519
50,291
50,319
(28)
37,859
3,401
4,200
(799)
4,373
8,251
84360
(109)
12,973
6,746
9,680
(2,934)
7,083
7,973
8,000
(27)
9,848
6,030
5,635
395
3,522
3,666
3,300
366
5,114
6,060
6,060
-
6,210
2,023
1,951
72
1,105
3,315
3,600
(285)
2,871
440
300
140
394
540
540
-
540
2,028
1,987
41
280
984
679
305
315
466
189
277
401
200
-
200
-
100
100
-
143
349
349
-
1,500
1,281
1,281
-
600
465
466
(1)
1,448
-
-
-
1,777
1,200
1,200
0 -
1,200
1,097
-
1,097
55,236
55,236
-
14,560
Center Complex - -
Total 404,036 398,415
- 92,989
5,621 409,074
The notes to the financial statements are an integral part of this statement.
.._ PARKER, FICKLINGT, HARTMANN i KANAK. 0.C. CENTMED PUDUC ACCOUNTANTS--�---.
43
CITY OF FAIRHOPE, ALABAMA
GENERAL FUND
STATEMENT OF EXPENDITURES WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
BEACH DEPARTMENT
Salaries
Beach repairs and maintenance
Beach decals
Payroll taxes
Total
SANITATION DEPARTMENT
Capital purchases
Trash contract
Sanitation contract
Landfill charges
Rent
Total
POLICE DEPARTMENT
Salaries
Gasoline and oil
Auto repairs and maintenance
Maintenance of radio equipment
Court supplies
Radio lease
Jail and police supplies
Uniforms
Training
City computer
Prisoners' meals
Payroll taxes
Employees' retirement
Employees' medical insurance
NCIC data system
Miscellaneous
Repairs and general maintenance
Capital purchases
Total
1985
1984
Revised
Over (Under)
Actual
Budget
Budget
Actual
$ 4,031
$ 3,700
$ 331
$ 4,345
11032
8,917
2,415
12,480
3,490
3,490
-
51
325
300
25
304
19,178
16,407
2,771
17,180
1,099
84,152
103,133
24,264
100
212,748
1,099
83,600
103,050
23,700
75
211,524
552
83
564
25
1,224
8,664
82,840
101,572
21,787
120
214,983
312,405
310,500
1,905
284,570
14,932
15,000
(68)
13,003
8,792
10,000
(1,208)
7,481
935
565
370
1,112
1,225
650
575
-
800
2,400
(1,600)
2,200
6,849
7,500
(651)
6,504
3,256
3,600
(344)
3,285
387
387
-
-
186
7,489
7,000
489
3,730
22,197
22,060
137
19,725
18,200
16,370
1,830
16,336
30,421
31,800
(1,379)
26,629
3,600
3,600
-
3,600
100
100
-
7
4,519
4,200
319
2,986
23,750
23,750
-
25,790
4559,857
459,482
375
417,144
(continued)
The notes to the financial statements are an integral part of this statement.
-PARKER, FICKLINO, HARTMANN A HANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS
44
CITY OF FAIRHOPE, ALABAMA
GENERAL FUND
STATEMENT OF EXPENDITURES WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985
1984
Revised
Over (Under)
Actual
Budget
Budget
Actual
FIRE DEPARTMENT
Salaries
$ 75,997
$ 76,000
$ (3) $
73,399
Gasoline and oil
3,566
3,500
66
3,370
Supplies
5,209
5,000
209
24,159
Vehicle and equipment repairs
19,470
20,000
(530)
12,052
Repairs and general maintenance
4,030
4,500
(470)
3,869
Training
2,775
2,775
-
-
Insurance - Volunteer Fire Dept.
1,076
1,076
-
1,031
Miscellaneous
225
225
-
-
Payroll taxes
5,404
5,035
369
5,032
Employees' retirement
4,379
3,400
979
4,263
Employees' medical insurance
8,020
8,400
(380)
7,318
Capital purchases
5,401
5,400
1
48,552
Total
135,552
135,311
241
1832045
STREET DEPARTMENT
Salaries
265,623
264,000
1,623
216,536
Gasoline and oil
37,411
40,000
(2,589)
30,453
Repairs and maintenance -
Vehicles and equipment
77,276
70,000
7,276
59,925
Materials, supplies and landscaping
71,735
82,000
(10,265)
48,863
Equipment rental
2,750
400
2,350
479
Uniforms
5,309
5,200
109
5,380
Payroll taxes
18,883
19,000
(117)
15,008
Employees' retirement
15,873
13,000
2,873
12,143
Employees' medical insurance
32,684
35,500
(2,816)
29,021
Sidewalks
13,704
14,000
(296)
-
Capital purchases
19,208
18,858
350
7,099
Total
560,456
561,958
(1,502)
424,907
(continued)
The notes to the financial statement are an integral part of this statement.
PARKER, FICKLING. NARTMANN i NANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS
45
CITY OF FAIRHOPE, ALABAMA
GENERAL FUND
STATEMENT OF EXPENDITURES WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
STAFF AGENCIES AND OTHER
Staff agencies:
Industrial Board
Planning Board
Harbor Board
Other:
Fairhope Public Library:
Monthly transfer
Other expenses
Fireworks Committee
Baldwin County Civil Defense
Total
DEBT SERVICE
Transfers to debt service funds
OTHER EXPENDITURES
Drainage project L-SP-PF-82-126
Transfers to the Street
Drainage Capital
Project Fund
Transfers to Airport Improvement
Capital Project Fund
Total
TOTAL EXPENDITURES
1985
1984
Revised
Over Under
Actual
Budget
Budge` _
Actual
$ -
$ -
$ -
$ 651
5,137
10,000
(4,863)
66
745
745
-
218
37,159
39,159
(2,000)
29,246
-
-
-
150
4,393
4,393
-
1,676
144
144
144
47,578
54,441
6,863)
32,151
202,724
203,000
(276)
2351829
2,475
36,168
38,643
2,475 8,030
5,537
36,168 -
38,643 13,567
$2,080,772 $2,040,538 $ 40,234 $1,947,880
The notes to the financial statements are an integral part of this statement.
--- PARK!R, FICKLINO. NART ►tA-04 A .WANAK. P C. CtRTIFIEG NJYLIC AGCOUNTANTS
46
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
FEDERAL REVENUE SHARING FUND
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
1985 1984
CASH
In bank $ 1 $ 1
xemwi O
LIABILITIES AND FUND BALANCE
LIABILITIES $ - $ -
FUND BALANCE 1 1
TOTAL LIABILITIES AND FUND BALANCE $ 1 $ 1
The notes to the financial statements are an integral part of this statement.
PARKER, fICKL1NG, hAR TV ANN A rf;N AK. a C. CERTIP CEO PUSLIC+CCOUNTANTS
47
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
FEDERAL REVENUE SHARING FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985 1984
Over Under
Actual Budget Budget Actual
REVENUE
Federal Entitlement -
U. S. Revenue Sharing $ 46,316 $ 44,316 $ 2,000 $ 50,104
EXPENDITURES
Transfers to the Fairhope
Public Library Board 46,316 44,,316 2,000 50,104
EXCESS REVENUE OVER
EXPENDITURES - - - -
FUND BALANCE AT BEGINNING OF
YEAR
FUND BALANCE AT END OF YEAR $ 1 1 $�� $� 1
The notes to the financial statements are an integral part of this statement.
------ PARKER, FICKLINO. MARTMANN A HANAK. P,C. CERTIFIED PUBLIC ACCOUNTANTS
48
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
STATE OF ALABAMA GASOLINE EXCISE TAX FUNDS
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
CASH
RECEIVABLES
Due from City of Fairhope, 1977-1978
Public Improvement Assessment Fund
Due from General Fund
Total receivables
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable, trade
FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
1985_ 1984
$ 109_044 $ ll,679
67,991
252
- 68,243
$ 104 $ 7�9�9�2
$ 238 $ 1', 385
108,806 78,537
$ 109,044 $ 79,922
The notes to the financial statements are an integral part of this statement.
PARKER, FICKLINO, NARTYANN & NANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS
49
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
STATE OF ALABAMA GASOLINE EXCISE TAX FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985
1984
Over Under
Actual
Budget
Budget
Actual
REVENUES
State of Alabama
Petroleum inspection fee
$ 6,305
$ 6,200
$ 105
$ 1,599
Gasoline excise tax (7
)
32,556
32,000
556
32,651
Gasoline excise tax (4
)
18,032
18,000
32
18,453
Interest earned
2,261
-
20261
-
Total revenues
59,154
56,200
2,954
52,703
EXPENDITURES
Street materials and
supplies
8,885
-
8,885
3,741
Transfers to General Fund
20,000
-
20,000
72,000
Total expenditures
281885
-
281885
75,741
EXCESS REVENUES OVER (UNDER)
EXPENDITURES
30,269
56,200
(25,929)
(23,038)
FUND BALANCE AT BEGINNING
OF YEAR
78,537
78,537
�`
101,575
FUND BALANCE AT END OF YEAR
$108,806
$134,737
$t>(25,929)
rs�
$ 78,537
�....
The notes to the financial statements are an integral part of this statement.
PARKER, RCKLINO, HART MAHN A NAHAK,P.C, CBRT01E0 PUSUC ACCOUNTAN73-
50
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
RECREATION OPERATING FUND
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
' 1985 1984
Cash
On hand $ 60 $ 180
In bank 20,961 20,190
TOTAL ASSETS 21 $ 2`0,3
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable, trade $ 1,793 $ 1,022
Payroll taxes payable 36 73
Due to City of Fairhope - General Fund 8,212 8,621
Deposits held in escrow - Eastern Shore Pathway 10,383 -
TOTAL LIABILITIES 20,424 9,716
FUND BALANCE 597 10,654
TOTAL LIABILITIES AND FUND BALANCE $ 21,021 $ 20,370
The notes to the financial statements are an integral part of this statement.
PARKER, FICKLINO, HARTMANN • HANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS----.-----
51
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
RECREATION OPERATING FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
REVENUES
Cigarette tax
Beer tax
Transfer from Recreation
Improvement Fund
Parking at stadium
Miscellaneous
Fairhope High School
Total revenues
EXPENDITURES
Employee medical insurance
Salaries
Payroll taxes
Athletic equipment
Repairs, maintenance
and supplies
Telephone and utilities
Arts and Crafts, Clinics
Gasoline and oil
Audit
Adult and tourist
recreation program
Tennis director
Golf Course
Colony rent
Rental
Football parking attendants
Miscellaneous
Insurance
Capital purchases
Retirement expense
Christmas bonus
Donation - Reserve police
TOTAL EXPENDITURES (carried forward)
1985
1984
Over Under
Actual
Budget
Budget
Actual
$ 24,457
$ 28,000
$ (3,543)
$ 27,790
45,919
46,000
(81)
45,761
-
-
-
9,935
3,294
3,000
294
4,020
1,623
200
1,423
2,868
2,100
1,800
300
1,800
77,393
79,000
(110607)
92,174
2,804
1,700
1,104
2,633
24,228
26,500
(2,272)
22,461
1,714
23P700
(986)
2,207
917
2,500
(1$83)
2,390
22,178
18,000
4,178
18,199
2,394
2,000
394
1,817
3,589
2,000
1,589
1,540
3,164
3,500
(336)
3,273
650
600
50
525
3,345
3,000
345
219700
-
-
-
857
4,912
-
4,912
-
2,236
2,300
(64)
2,236
640
-
640
213
-
900
(900)
132
88
1,150
(1,062)
516
925
800
125
806
12,339
9,000
3,339
20,450
977
900
77
880
350
250
100
300
-
1,200
(1,200)
600
87,450 79,000 8,450 84,735
(continued)
- - #'AWKEW PICKLING, NAgTIKANN Ai-ANAK.? C.^.FATWEOPIISOC A C.rOII+1T
52
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
RECREATION OPERATING FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985 1984
Over Under)
Actual Budget Budget _ Actual
TOTAL EXPENDITURES (brought forward) $ 87,450 79,000 8,450 84,735
EXCESS REVENUES OVER (UNDER)
EXPENDITURES (10,057) - (10,057) 7,439
FUND BALANCE
AT BEGINNING YEAR 10,654 ,102654 - 3,215
FUND BALANCE AT END OF YEAR $ 597 $ 10,654 $0 0,057) $ 10,654
The notes to the financial statements are an integral part of this statement.
- - PARKER, FICKLINO, HARTMANN A NANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS
53
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
RECREATION CAPITAL IMPROVEMENT FUND
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
1985 1984
CASH IN BANK r-
Recreation Project Improvement - checking $ 44,614 $ 29,569
Recreation Project Improvement - savings 15,788 14,982
Total cash 60,402 44,551
TOTAL ASSETS $ 60,402 $ 44,551
LIABILITIES AND FUND BALANCE
LIABILITIES $ - $ -
FUND BALANCE 60,402 44,551
TOTAL LIABILITIES AND FUND BALANCE $ 60,402 $ 44,551
e �e
The notes to the financial statements are an integral part of this statement.
-------PwNKQH, AICKLiNG NAPTASANM 6 MANAk.P.G. CERTIFIED PUOLIC ACCOUNTANTS
54
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
RECREATION CAPITAL IMPROVEMENT FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
REVENUES
Cigarette tax
Beer tax
Interest earned
Total revenues
EXPENDITURES
Transfers to debt service fund
Transfer to Recreation
Operating Fund
Capital purchases
Miscellaneous
Total expenditures
EXCESS REVENUES OVER
EXPENDITURES
FUND BALANCE AT BEGINNING
OF YEAR
FUND BALANCE AT END OF YEAR
1985
1984
Over Under
Actual
Budget
Budget
Actual
$ 12,226
$ 13,000
$ (774)
$ 13,603
30,613
27,000
3,613
30,517
3,174,
-
3,174
2,427
46,013
40,000
6,013
46,547
30,162
30,000
162
30,162
- 9,935
10,000 (10,000) -
5
30,162 40,000 (9,838) 40X102
15,851 - 15,851 6,445
44,551 44,551 - 38,106
$ 60,402 $ 44,5.51 $ 15,581 $ 44,551
�s ®� - ��
The notes to the financial statements are an integral part of this statement.
... PARKER, MCKLING, HARTMANN 4 HANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS
55
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
CITY OF FAIRHOPE PUBLIC LIBRARY BOARD
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
1985 1984
CASH
NOW account $ 17,286 $ 12,215
Flexifund account 29,319 23,656
Total cash 46,605 35,871
RECEIVABLES
State Department of Industrial Relations 887 1,307
State Social Security 130 -
Total receivables 1,017 1,307
TOTAL ASSETS $ 47,622 $ 37,178
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable, trade $ 1,461 $ 1,426
Payroll taxes and retirement payable 473 585
TOTAL LIABILITIES 1,934 2,011
FUND BALANCE 45,688 35,167
TOAL LIABILITIES AND FUND BALANCE $ 47,622 $ 37�178
The notes to the financial statements are an integral part of this statement.
- - PARKER. PICKLING, HARTMANN 4 NANAK. PC.C2RTIF15O PUIL.IC ACCOUNTANTS
56
CITY OF FAIRHOPE, ALABAMA
SPECIAL REVENUE FUND
CITY OF FAIRHOPE PUBLIC LIBRARY BOARD
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985
1984
Over Under)
REVENUES
Actual
Budget
Budget
Actual
Transfers from other funds of
the City of Fairhope
$ 83,475
$ 83,475
$ -
$ 79,350
Fines
4,618
3,200
1,418
3,972
Lost books
481
-
481
385
Gifts and memorials
7,005
4,000
3,005
3,549
Copier receipts
252
-
252
112
Memberships - out of city
4,280
3,200
1,080
3,310
Interest income
21475
1,000
1,475
2,308
State - Govenor's Discretionary
Funds
1,500
-
1,500
-
Lease income
1,425
1,500
(75)
1,350
Miscellaneous income
575
-
575
599
Total revenues
106,086
96,375
9,711
94,935
EXPENDITURES
Salaries
46,310
47,000
(690)
44,676
Payroll taxes
3,650
4,200
(550)
2,891
Book purchases and repairs
18,722
161250
2,472
179670
Periodicals, film and microfilm
3,661
3,800
(139)
4,548
Supplies and postage
3,005
2,800
205
2,243
Telephone
838
750
88
666
Utilities
5,009
5,000
9
3,765
Repairs and maintenance
1,727
1,400
327
1,023
Janitorial service
1,475
1,500
(25)
1,500
Audit and legal services
695
650
45
595
Miscellaneous
923
975
(52)
1,426
Travel and conventions
288
350
(62)
311
Audio visual
896
1,750
(854)
664
Bookkeeping
1,750
1,750
-
1,750
Furniture and equipment
-
800
(800)
-
New library
2,198
Childrens' programs
546
900
(354)
475
Employees' hospitalization
insurance
2,900
3,300
(400)
29739
Employees' retirement
2,198
2,200
(2)
1,873
Property taxes
972
1,000
(28)
898
Total expenditures
95,565
96,375
(810)
91,911
EXCESS REVENUES OVER
EXPENDITURES
10,521
-
10,521
3,024
FUND BALANCE AT BEGINNING OF YEAR
35,167
35,167
-
32,143
FUND BALANCE AT END OF YEAR
$ 45,688
$ 35,167
$ 10,521
$ 35,167
The notes to the financial statements are an integral part of this statement.
PANklA, f1CKL7NG, NAAYMANN A NANAK, P.C. C&AYIFIFD PUBLIC ACCOUNTANTS
57
CITY OF FAIRHOPE, ALABAMA
SCHEDULE OF ACTIVE AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 1985
GRANT TITLE
DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT
Community Development Block Grant
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
OFFICE OF REVENUE SHARING
TOTAL FEDERAL GRANTS
STATE AND OTHER NONFEDERAL AWARDS
TOTAL
FEDERAL I. D. NUMBER
L-SP-PF-84-034
3-01-0029-01-83
01-2-002-004
AMOUNT OF
AWARDS
RECEIVED
$103,500
266,511
46,316
416,327
3,972
$420,299
- -- - - - - PARKER. FICKLINA, HARTMANN& NANAK.
58
PARKER, FICKLING, HARTMANN & HANAK, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
FAIRHOPE, ALABAMA
SAMUEL F. PARKER
LESLIE T. FICKLING
XAVIER A. HARTMANN, III MEMBER, AMERICAN INSTITUTE OF
J. KENNETH HANAK CERTIFIED PUBLIC ACCOUNTANTS
WAYNE A. GRUENLOH
RUCKER T. TAYLOR, III
ROBERT E. GRANT, JR. CITY OF FAIRHOPE, ALABAMA
COMMUNITY DEVELOPMENT BLOCK GRANT NO. L-SP-PF-84-034
FEDERAL AVIATION ADMINISTRATION PROJECT NO. 3-01-0029-01-83
AUDITOR'S COMMENTS ON COMPLIANCE
December 11, 1985
Honorable James P. Nix, Mayor, and
Members of the City Council
Fairhope, Alabama
We have examined the combined financial statements of the City of
Fairhope, Alabama for the year ended September 30, 1985, as listed in the table
of contents and have issued our report thereon dated December 11, 1985 on page 1.
Our examination was made in accordance with generally accepted auditing standards
established by the American Institute of Certified Public Accountants; the pro-
visions of Circular A-102, Attachment P, "Audit Requirements"; Standards for
Audit of Governmental Organizations, Programs, Activities and Functions promul-
gated by the U. S. Comptroller General, as they pertain to financial and com-
liance audits; Guidelines for Financial and Compliance Audits of Federally Assis-
ted Programs; the provisions of the office of Management and Budget's Compliance
Supplement for Single Audits of State and Local Governments; and accordingly,
included such tests of the accounting records and such other audting procedures
as we considered necessary in the circumstances.
Based on our examination, we found that, for the items tested, the City of
Fairhope, Alabama complied with the material terms and conditions of the Federal
award agreements. Further, based on our examination and the procedures referred
to above, nothing came to our attention to indicate that the City of Fairhope,
Alabama had not complied with the significant compliance terms and conditions of
the awards referred to above.
This report is intended solely for the use of the City of Fairhope, Ala-
bama, the cognizant audit agency, other Federal audit agencies and the Alabama
Department of Economic.and Community Affairs, and should not be used for any
other purpose.
Certified Public Accountants
-- - PARA[A, ►1CY.LINn HAhYMANNA HANAK. P.C. CkRTIMED PUBLIC ACCOUNTANTS
PARKER, FICKLING, HARTMANN & HANAK, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
FAIRHOPE, ALABAMA
SAMUEL F. PARKER
LESLIE T. FICKLING
XAVIER A. HARTMANN, III MEMBER, AMERICAN INSTITUTE OF
J. KENNETH HANAK CERTIFIED PUBLIC ACCOUNTANTS
WAYNE A. GRUENLOH
RUCKER T. TAYLOR, III
ROBERT E. GRANT, JR. CITY OF FAIRHOPE, ALABAMA
COMMUNITY DEVELOPMENT BLOCK GRANT NO. L-SP-PF-84-034
FEDERAL AVIATION ADMINISTRATION PROJECT NO. 3-01-0029-01-83
AUDITOR'S REPORT
ON INTERNAL ACCOUNTING CONTROL
December 11, 1985
Honorable James P. Nix, Mayor and
Members of the City Council
Fairhope, Alabama
We have examined the combined financial statements of the City of Fairhope,
Alabama for the year ended September 30, 1985 as listed in the table of contents and
have issued our report thereon dated December 11, 1985 on page 1. As art of our
examination, we made a study and evaluation of the system of internal accounting
control of the City of Fairhope, Alabama referred to above to the extent we consi-
dered necessary to evaluate the system as required by generally accepted auditing
standards and the standards for financial and compliance audits contained in the
Circular A-102, Attachment P, "Audit Requirements", Standards for Audit of Govern-
mental Organizations, Programs, Activities and Functions, Guidelines for Financial
and Compliance Audits of Federally Assisted Programs, and Compliance Supplement
for Single Audits of State and Local Governments. For the purpose of this report
we have classified the significant internal accounting controls in the following
categories.
Accounting Applications
-Billings
-Receivables
-Cash receipts
-Purchasing and receiving
-Accounts payable
-Cash disbursements
-Payroll
-Inventory control
-Property and equipment
-General ledger
Our study included all of the control categories listed above. The purpose of our
study and evaluation was to determine the nature, timing and extent of the auditing
procedures necessary for expressing an opinion on the City of Fairhope, Alabama's
combined financial statements. Our study and evaluation was more limited than would
be necessary to express an opinion on the system of internal accounting control taken
as a whole or on any of the categories of controls identified above.
(continued)
PARKER, FICKLING, HARTMANN & HANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
59
Honorable James P. Nix, Mayor, and
Members of the City Council
Page 2.
The Mayor and City Council of the City of Fairhope, Alabama are responsible
for establishing and maintaining a system of internal accounting control. In ful-
filling this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of control procedures. The object-
ives of a system are to provide management with reasonable, but not absolute, assur-
ance that assets are safeguarded against loss from unauthorized use or disposition,
and that transactions are executed in accordance with management's authorization and
recorded properly to permit the preparation of financial statements in accordance
with generally accepted accounting principles.
Because of limitations inherent in any system of internal accounting con-
trol, errors or irregularities may neverless occur and not be detected. Also,
projection of any evaluation of the system to future periods is subject to the risk
that procedures may become inadequate because of changes in conditions or that the
degree of compliance with the procedures may deteriorate.
Our study and evaluation, made for the limited purpose described in the first
paragraph, would not necessarily disclose all material weaknesses in the system.
Accordingly, we do not express an opinion on the system of internal accounting con-
trol of the City of Fairhope, Alabama taken as a whole or on any of the categories
of controls identified in the first paragraph. However, our study and evaluation
disclosed no condition that we believe to be a material weakness.
This report is intended solely for the use of the City of Fairhope, Alabama,
the cognizant audit agency, or other Federal audit agencies and the Alabama Depart-
ment of Economic and Community Affiars, and should not be used for any other purpose.
pa-IL14, ��4 ,�
Certified Public Accountants
PARXER. FiCXLIN D. HARTMANN E NANAX. P,C. CERTIFIED PUBLIC
60
CITY OF FAIRHOPE, ALABAMA
STREET DRAINAGE CAPITAL PROJECT FUND
COMMUNITY DEVELOPMENT BLOCK GRANT NO. L-SP-PF-84-034
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
1985 1984
Cash 7,355 T —
TOTAL ASSETS $ 7,355 $ -
LIABILITIES AND FUND BALANCE
LIABILITIES
Due to City of Fairhope - General Fund $ 5,796 $ -
FUND BALANCE 1,559 -
TOTAL LIABILITIES AND FUND BALANCE $ 7,355 $ -
The notes to the financial statements are an integral part of this statement.
.. PARKED, FICXLING, HAR nwA iNaI HANAX.P.C. CRATIfIQC PUBLIC ACCOUNTANTS-��-.—....�-.�..�..—_
61
CITY OF FAIRHOPE, ALABAMA
STREET DRAINAGE CAPITAL PROJECT FUND
COMMUNITY DEVELOPMENT BLOCK GRANT NO. L-SP-PF-84-034
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED SEPTEMBER 30, 1985 AND 1984
REVENUE
Federal grants - CDBG
EXPENDITURES
Administration
Drainage improvements
Total expenditures
EXCESS REVENUE OVER EXPENDITURES
Fund balance at beginning of year
FUND -BALANCE AT END OF YEAR
1985
Over Under 1984
Actual
Budget Budget Actual
$103,500
$103_ ,500 $ - $ -
13,600
13,600 -
8810341
88,341
101,941
101,941 - -
1,559
1,559 - -
$ 11,559
$ 1,559
The notes to the financial statements are an integral part of this statement.
PARKER, FICKLINO, HARTMANN i NANAK. A.C. CERTIFIED
w 62
CITY OF FAIRHOPE, ALABAMA
COMMUNITY DEVELOPMENT BLOCK GRANT NO. L-SP-PF-84-034
STATEMENT OF SOURCE AND STATUS OF FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1985
Grant
Amount
Total program year 1984 funds allocated to recipient $200,000
Less:
Total program year 1984 funds drawn down by recipient
103,500
Funds
still available from HUD - Program year 1984
96,500
Total
program year 1984 funds drawn down by recipient
103,500
Less:
Funds applied to program year 1984
101,941
Total
program year 1984 funds held by recipient
1,559
Total
program year 1984 funds available for disposition
$ 982059
Additional
Funding
Additional City funds allocated to program:
Force account Labor and equipment
$ 75,079
Total
City funds applied to program
75,079
Less:
Additional City funds applied to program
75,079
Additional City funds available for disposition
Total
Funding
Total funds allocated to program $275,079
Less:
Total
funds applied
to program
177,020
TOTAL
FUNDS
AVAILABLE FOR
DISPOSITION
$ 98,059
The notes to the financial statements are an integral part of this statement.
PARKER,PICKLING,NARTYIN!!%4ANAK.PC.CERTiftEDPUSLICACLOUNTANTS
63
CITY OF FAIRHOPE, ALABAMA
COMMUNITY DEVELOPMENT BLOCK GRANT NO. L-SP-PF-84-034
STATEMENT OF PROGRAM COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 1985
Authorized
Costs Expenditures
PROGRAM ACTIVITY
Administration $ 23,500 $ 13,600
Drainage improvements 166,500 88,341
Contingencies 10,000 -
Total 200,000 101,941
CITY OF FAIRHOPE-IN-KIND
Force account labor and equipment 75,079
Total 75,079
TOTAL PROGRAM COSTS $ 200,000 $ 177,020
The notes to the financial statements are an integral part of this statement.
PARKER, FICKLING. HARTMAN►I R HANAK. P.C. CERTIFIZO
64
CITY OF FAIRHOPE, ALABAMA
AIRPORT IMPROVEMENT CAPITAL PROJECT FUND
FEDERAL AVIATION ADMINISTRATION PROJECT NO. 3-01-0029-01-83
CASH
TOTAL ASSETS
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Due to City of Fairhope - General Fund
FUND BALANCE (DEFICIT)
TOTAL LIABILITIES AND FUND BALANCE
1985 1984
$ 1 $ 2,562
$ 1 $ 2,562
$ - $ 10,000
1 (7,438)
$ 1 $ 2,562
The notes to the financial statements are an integral part of this statement.
PARKER, FICKLING, HART A �kkk : HANAK. A.C. CERT IF140 PUBLIC AGC GJNTANTS -
65
CITY OF FAIRHOPE, ALABAMA
AIRPORT IMPROVEMENT CAPITAL PROJECT FUND
FEDERAL AVIATION ADMINISTRATION PROJECT NO. 3-01-0029-01-83
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
REVENUE
Federal grants - FAA
Donation - 24.2 acres real estate
Transfers from General Fund
Program income - fee for plans
Total revenues
EXPENDITURES
Administration
Preliminary
Architectural engineering -
basic fees
Other architectural engineering
fees
Appraisal, legal and land survey
Land acquisition
Land development
Donated land
In -eligible costs
Total expenditures
EXCESS REVENUE OVER (UNDER)
EXPENDITURES
Fund balance (deficit) at beginning
of year
FUND BALANCE (DEFICIT) AT END OF YEAR
1985
Over Under) 1984
Actual Budget Budget Actual
$266,511 $266,511 $ $ 64,966
65,504 65,504 -
36,168 36,168 -
550 550 -
368,733 266,511 102,222 64,966
2,403
2,403
3,000
25,985
45,063
45,063
24,938
704
704
12,049
7,347
7,347
-
239,920
239,920
-
-
6,432
65,504
65,504
-
353
353
-
361,294
295,790 65,504
72,404
7,439
(29,279) 36,718
(7,438)
(71438) (7)438)
$ 1 $(36,717) $ 36,718 $(7,438)
The notes to the financial statements are an integral part of this statement.
PARKER. FICKLING, HARTMANN A NANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS .�.-_
66
CITY OF FAIRHOPE, ALABAMA
FEDERAL AVIATION ADMINISTRATION PROJECT NO. 3-01-0029-01-83
STATEMENT OF SOURCE AND STATUS OF FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1985
Grant
Amount
Total
program year 1983
funds allocated to recipient
$1,700,000
Less:
Total program year 1983 funds drawn down by recipient
331,477
Funds
still available from FAA - Program year 1983
12368,523
Total
program year 1983
funds drawn down by recipient
331,477
Less:
Funds applied to
program year 1983
331,477
Total
program year 1983
funds held by recipient
-
Total
program year 1983
funds available for disposition
$1,368,523
Additional
Funding
Additional City funds
allocated to program
$
188,889
Less: Additional City
funds applied to program
36,168
Additional'City funds
available for disposition
$
152,721
Additional Match funds
allocated to program
$
65,504
Program income
$
550
Total
Funding
Total funds allocated to program $1,954,943
Less: Total funds applied to program 433,699
TOTAL FUNDS AVAILABLE FOR DISPOSITION $1,587,298
The notes to the financial statements are an integral part of this statement.
--- - -- PARKER, FICKLINO,NAATMANN IN HANAK.P,C.CERTIRIED PUBLIC ACCOUNTANTS
67
CITY OF FAIRHOPE, ALABAMA
AIRPORT IMPROVEMENT CAPITAL PROJECT FUND
FEDERAL AVIATION ADMINISTRATION PROJECT NO. 3-01-0029-01-83
STATEMENT OF PROGRAM REVENUE AND COSTS
FOR THE YEARS ENDED SEPTEMBER 30, 1985, 1984 and 1983
Program Income
Federal Aviation Administration
City of Fairhope, Alabama
TOTALS
Years ended September 30,
Total 1985 1984 1983
$331,477 $266,511 $ 64,966 $ -
36,168 26,168 1_0,000
$367,645 $292,6679 $ 74,966 -
Program Activity
Authorized
Years ended
September 30,
Costs
Total
1985
1984 1983
Development other
than land
$1,456,513
$114,142
$ 48,170 $
65,972 $ -
Land acquisition
432,376
253,699
247,267
6,432 -
TOTALS
$1,888,889
$367,841
$295,437 $
72,404 $ -
The notes to the financial statements are an integral part of this statement.
- - GA gKlA, P�CKIlNp,MMTMANNIMIMAK.RC.Ci1glRitp V4A1�C
CITY OF FAIRHOPE, ALABAMA
ELECTRIC FUND
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
CURRENT ASSETS
Cash:
Operating - checking and Money Market
Passbook savings accounts
Certificates of deposit
Sinking fund - general obligation electric
warrants
Total cash
Receivables:
Alabama Power Company
Utility customers
Accrued interest
Federal Emergency Management Agency
Miscellaneous
Allowance for uncollectible accounts
Total receivables
Materials inventories
Prepaid operating expenses
Total current assets
PROPERTY, PLANT AND EQUIPMENT (at cost)
Electric plant and distribution system
Vehicles and equipment
Accumulated depreciation
Total property, plant and equipment - net
OTHER ASSETS
Unamortized debt issue cost
TOTAL ASSETS
1985 1984
$ 525,179 $ 573,000
59,115 19,856
385,637 263,376
12,614 14,362
982,545 870,594
- 83,876
473,959 392,263
7,126
705
13,798
-
223
19,030
(65,753)
(46,320)
429,353
449,554
96,552
87,287
12,711
7,948
1,521,161 1,415,383
3,2489351
3,063,038
335,823
314,258
3,584,174
3,377,296
(1,330,888)
(1,200,653)
2,253,286
2,176,643
139 324
$3,774,586 $3,592,350
PARKER, FICKLING, HARTMANN i HANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
LIABILITIES AND CAPITALIZATION
1985 1984
CURRENT LIABILITIES
Accounts payable, trade $^ 359,930 $ 345,345
Accrued expenses and taxes:
Payroll taxes 2,140 1,822
Utility taxes 3,528 -
Employees' retirement contribution 2,534 1,929
Interest 1,807 2,353
Insurance withholding - 151
Total accrued expenses and taxes 10,009 6,255
Utility customer deposits 350,676 311,431
General obligation electric warrants 45,000 42,000
Note payable, Central Bank of The South 9,200 8,371
Total current liabilities 774,815 713,402
NON CURRENT LIABILITIES
General obligation electric warrants 94,000 139,000
Note payable, Central Bank of the South 2,501 11,704
Inter fund loans payable, City of Fairhope:
General Fund 4,773 12,291
Natural Gas Fund 185,967 1994351
Water and Wastewater Fund 71,044 43,516
Total non current liabilities 358,285 405,862
TOTAL LIABILITIES . 1,133,100 1,119,264
CAPITALIZATION
Contributions in aid of construction 86,310 83,696
Retained earnings 2,555,176 2,389,390
Total capitalization 2,641,486 2,473,086
TOTAL LIABILITIES AND CAPITALIZATION $3,774,586 $3i592,350
The notes to the financial statement are an integral part of this statement.
- PARKER, FICKLING, HARTMANN III NANAK. P.C. CERTIFIED PUBLIC ACCOUNTANTS
CITY OF FAIRHOPE, ALABAMA
ELECTRIC FUND
STATEMENT OF INCOME AND RETAINED EARNINGS
WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985
Over (Under)
Actual Budget Budget
1984
Actual
OPERATING REVENUES
Sales of electric energy $4,492$23 $4,343,000 $ 149,323 $4,080,283
Other charges, sales and receipts 40,569 37,000 3,569 37,248
Total operating revenues 4,532,892 4,380,000 152,892 4,117,531
OPERATING EXPENSES
Chamber of Commerce contract
Purchased power
Operating, maintenance and
administrative salaries
(Note 16)
Audit fees
Bad debts
Bond issue expense
Christmas bonuses
Computer expenses
Electric energy furnished other
divisions of the City (Note 17)
Dues and memberships
Engineering services
Gasoline and oil
Insurance - casualty
Insurance - employees' group
Legal fees
Plant maintenance and operating
supplies
Maintenance vehicles and equipment
Miscellaneous
Office supplies and postage
Payroll taxes
Professional services
Employees' retirement
Telephone
Travel, training and school
Uniforms
Total operating expenses
EARNINGS FROM OPERATIONS BEFORE
DEPRECIATION, OTHER INCOME AND
OTHER DEDUCTIONS
(carried forward)
1,200
1,200
-
-
3,232,824
3,154,000
78,824
2,850,595
289,730
278,950
10,780
255,974
3,245
3,200
45
3,055
20,004
20,000
4
20,004
185
185
-
185
1,380
1,560
(180)
1,560
3,508
2,500
19008
3,135
81,513
80,000
1,513
68,443
30,961
10,000
20,961
9,166
24,791
18,000
6,791
21,838
7,085
5,000
2,085
6,043
27,375
23,000
4,375
23,261
25,779
28,000
(2)221)
22,442
212
-
212
375
57,586
13,994
42
8,107
25,754
3,197
19,035
4,179
4,471
2,497
3,888,654
17,000
12,000
200
7,000
20,700
600
16,200
4,000
3,500
3,000
3,709,795
644,238 670,205
40,586
1,994
(158)
1,107
5,054
2,597
2,835
179
971
(503)
178,859
(25,967)
34,298
16,156
120
9,984
19,972
1,865
15,953
3,982
3,897
2,611
3,394,914
722,617
PARKER, FICKLING, HARTMANN & NANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
1985 1984
Over (Under)
Actual Budget Budget Actual
EARNINGS FROM OPERATIONS BEFORE
DEPRECIATION, OTHER INCOME AND
OTHER DEDUCTIONS
(brought forward) $ 644,238 $ 670,205 $ (25,967) $ 722,617
OTHER INCOME (DEDUCTIONS)
Federal Emergency Management
Agency
13,798
-
13,798
-
Interest expense
(10,494)
(.14,000)
(3,506)
(13,357)
Interest income
103,268
50,000
53,268
60,758
Earnings transferred to the
General Fund of the City
of Fairhope
(458,000)
(458.1000),
-
(440,000)
Total other income
(deductions)
(351,428)
(422,000)
(70,572)
(392,599)
NET INCOME BEFORE DEPRECIATION
292,810
2483*205
44,605
330,018
DEPRECIATION EXPENSE (Note 18)
On assets acquired with own funds
127,024
1180177
On assets acquired from contri-
butions in aid to construction
3,211
2,922
Total depreciation expense
130,235
118,000
12,235
121,099
NET INCOME
162,575
130,205
32,370
208,919
Add credit arising from transfer of
depreciation to contributions in
aid to Construction Account
(Note 18)
13,211
3,211
2,922
Net Income Transferred to Retained
Earnings
165,786
$ 13�5
$ 3�1
211,841
Retained earnings at beginning of year:
As previously reported
2,162,982
Adjustment (Note 21)
14 567
Restated
2
=_
2,177,549
�—
RETAINED EARNINGS AT END OF YEAR
$2,555,176
$2,389,390
..� I
The notes to the financial statements are an integral part of this statement.
-. - PARKER, FICKLINO, HARTMANN&NANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
CITY OF FAIRHOPE, ALABAMA
NATURAL GAS FUND
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
CURRENT ASSETS
Cash:
Operating accounts
Savings account
Certificates of deposit
Bond sinking fund
Total cash
Receivables:
Bulk gas customer - Town of Daphne
Miscellaneous
Allowance for doubtful accounts
Total receivables
Materials inventories
Prepaid operating expenses
Total current assets
SINKING FUNDS
First mortgage revenue bonds, 1961
series, reserve and replacement
funds
PROPERTY, PLANT AND EQUIPMENT (at cost)
Natural gas plant and distribution system
Vehicles and equipment
Accumulated depreciation
Total property, plant and equipment - net
OTHER ASSETS
Inter fund loans receivable, City
of Fairhope:
Electric Fund
TOTAL ASSETS
1985 1984
$ 36,009
$ (828)
-
411
226,882
206,677
43,860
�44,688
306,751
250,948
46,986
59,838
1,619
4,324
(687)
(1,860)
47,918
62,302
70,576
69,568
6,596
5,455
431,841 388,273
176,628 172,274
1,867,321
205,088
2,072,409
(1,124,570)
947,839
185,967
$1,744 2,2�75
1,806,367
196,868
2,003,235
(1,055,768)
947,467
199,351
$1, 707 36655
PARKER, FICKLING, HARTMANN 6 HANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
70
LIABILITIES AND CAPITALIZATION
1985 1984
CURRENT LIABILITIES
Accounts payable, trade $ 63,104 $ 71,968
Accrued expenses and taxes:
Payroll taxes 1,632 1,460
Employees' retirement contribution 1,859 1,643
Interest 4,200 4,800
Insurance withholding - 267
Total accrued expenses and taxes 7,691 8,170
First mortgage revenue bonds, 1961 series 45,000 45,000
Total current liabilities 115,795 125,138
NON CURRENT LIABILITIES
First mortgage revenue bonds, 1961 series 270,000 315,000
Inter fund loans payable, City of Fairhope:
General Fund 4,458 5,526
Total non current liabilities 274,458 320,526
TOTAL LIABILITIES 390,253 445,664
CAPITALIZATION
Contributions in aid of construction 156,445 148,486
Retained earnings 1,195,577 1,113,215
Total capitalization 1,352,022 1,261,701
TOTAL LIABILITIES AND CAPITALIZATION $1,742,275 $1,707,365
The notes to the financial statements are an integral part of this statements.
PARIM. PICKLMD, HARTMANN Y NANAK, P.C. CERTIFIED PUBUC ACCOUNTANTS
CITY OF FAIRHOPE, ALABAMA
NATURAL GAS FUND
STATEMENT OF INCOME AND RETAINED EARNINGS
WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985
Over (Under)
Actual Budget Budget
1984
Actual
OPERATING REVENUES
Sales of natural gas $2,463,463 $2,660,000 $ (196,537) $2,674,396
Miscellaneous sales and receipts 372 500 (128) 392
Total operating revenues 2,463,835 2,660,500 (196,665) 2,674,788
OPERATING EXPENSES
Natural gas purchases
1,492,180
1,768,000
(275,820)
1,844,465
Chamber of Commerce contract
1,200
1,200
-
-
Professional services
2,175
2,650
(475)
-
operating, maintenance and
administrative salaries
(Note 16)
222,250
203,550
189700
207,017
Audit and accounting fees
4,310
3,200
1,110
4,230
Christmas bonuses
1,540
1,400
140
1,38
Computer expenses
1,988
1,800
188
2,339
Dues and memberships
897
1,000
(103)
987
Engineering services
11,775
12,000
(225)
13,60?
Gasoline and oil
8,929
7,000
1,929
7,315
Insurance - casualty
12,504
12,000
504
12,439
Insurance - employees group
24,771
27,500
(2,729)
23,111
Legal fees
5,890
5,000
890
9,990
Plant maintenance and operating
supplies
18,246
17,000
1,246
18,651
Maintenance - vehicles and equipment
19,360
6,000
13,360
6,762
Miscellaneous
165
50
115
44
Office supplies and postage
12,879
4,000
8,879
2,832
Payroll taxes
17,936
18,000
(64)
16,431
Employees' retirement
15,228
15,400
(172)
14,586
Telephone
3,010
2,800
210
2,864
Utilities
1,355
1,500
(145)
1,250
Travel, training and school
1,868
3,500
(1,632)
4,696
Trustee fees
500
500
-
500
Uniforms
2,523
2,600
(77)
2,608
Distribution of joint revenue -net
3,666
-
3,666
11,648
Total operating expenses
1,887,145
2,117,650
(230,505)
2,209,752
EARNINGS FROM OPERATIONS
BEFORE DEPRECIATION, OTHER INCOME
AND OTHER DEDUCTIONS
(carried forward) 576,690 542,850 33,840 465,03(
PARKER, FICKLING, HARTMANN A HANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
71
EARNINGS FROM OPERATIONS BEFORE
DEPRECIATION, OTHER INCOME AND
OTHER DEDUCTIONS
(brought forward)
OTHER INCOME (DEDUCTIONS)
Interest expense
Interest income
Earnings transferred to the
General Fund of the City of
Fairhope
Purchased gas refunds
Total other income
(deductions)
NET INCOME BEFORE DEPRECIATION
DEPRECIATION EXPENSE (Note 18):
On -assets acquired with own funds
On assets acquired from
Contributions in aid to
construction
Total depreciation expense
NET INCOME (LOSS)
Add credit arising from transfer
of depreciation to contributions
in aid to construction account
(Note 18)
Net Income transferred to retained
earnings
Retained earnings at Beginning of
Year:
As previously reported
Adjustment (Note 21)
Restated
RETAINED EARNINGS AT END OF YEAR
1985 1984
Over (Under)
Actual Budget Budget Actual
$ 76,690 $ 542,850 $ 33,840 $ 465,036
(12,900) (13,590) (690) (14,700)
39,587 35,000 4,587 33,936
(458,000) (458,000) - (440,000)
1,267 11267 _ 90,239
(430,046)
(436,590)
(6,544)
(330,525)
146,644
106,260
40,384
13411511
64,282 61,271
4,5520 -3,968
68,802 65,000 3,802 65,239
77,842 41,260 36,582 69,272
4,520 - 4,520 3,968
82,362 $ 41,260 $ 41,102 73,24,0
1,1131215
$1,195,577
1,024,112
15,863
1,039,975
$1,113,215
The notes to the financial statements are an integral part of this statemeut.
--- -- -r-- PAPICER, MKLING. NA9"I MANN A NAW,K. P.C. CIRRI IFILU PUBLIC ACCOL NTAN Ca'
CITY OF FAIRHOPE, ALABAMA
WATER AND WASTEWATER FUND
BALANCE SHEET
SEPTEMBER 30, 1985 AND 1984
ASSETS
1985
1984
CURRENT ASSETS
Cash:
Operating account
$ 25,040
$ 18,543
Passbook savings accounts
3,461
161
Construction accounts - restricted
-
6,900
Bond sinking funds
226,436
205,814
Certificates of deposit
76,595
49,102
Total cash
331,532
2` 80,20
Receivables:
Miscellaneous
2,150
1,365
Deposits on equipment
5,966
5,966
Allowance for doubtful accounts
(979)
7,137
(1,076)
� 255
Total receivables
Materials inventories
400906
37,743
Prepaid operating expenses
12,609
7,618
Total current assets
392,184
332,136
SINKING FUNDS
Reserve and replacement funds
137,429
110_999
PROPERTY, PLANT AND EQUIPMENT (at cost)
Water and Wastewater systems
7,761,887
7,699,601
Vehicles and equipment
167,164
161,638_
7,929,051
7,861,239
Accumulated depreciation
(2,040,042)
(1,826,711)
Total property, plant and equipment - net
5,889,009
6,034,528
OTHER ASSETS
Unamortized debt cost
Receivable - Electric Fund
Total other assets
TOTAL ASSETS
29,931
71,044
100,975
31,442
43,516
74,958
$6,519,597 $6,55�2,621
PARKER, FICKUNG, HARTMANN i HANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
72
LIABILITIES AND CAPITALIZATION
1985 1984
CURRENT LIABILITIES
Accounts payable:
Trade $ 16,581 $_9,� 621
Accrued expenses and taxes:
Payroll taxes 1,702 1,506
Employees' retirement contribution 1,969 1,738
Interest 111,510 113,182
Employee insurance - 38
Total accrued expenses and taxes 115,181 116,464
Water revenue bond payable 13,000 7,000
First mortgage revenue bonds payable 65,000 60,000
78,000 67,000
Total current liabilities 209,762 193,085
NON CURRENT LIABILITIES
Water revenue bonds payable 2,503,100 2,523,000
First mortgage revenue bonds payable 905,000 970,000
3,408.1100 3,493,000
Inter fund loans payable, City of Fairhope:
General Fund 2,451 5,754
Total non current liabilities 3,410,551 3,498,754
TOTAL LIABILITIES 3,620,313 3,691,839
CAPITALIZATION
Contributions in aid of construction:
United States Government 818,570 846,005
Customers and developers 971,024 911,159
Other funds of the City of Fairhope 38,147 38,147
Retained earnings 1,071,543 1,065,471
Total capitalization 2,899,284 2,860,782
TOTAL LIABILITIES AND CAPITALIZATION $6,51� 7 $6,552,21
The notes to the financial statements are an integral part of this statement.
""` - •-••^ PARKER, FICKLING. HARTMANN R AANAK• F.C. CPATMOD "LIC ACCOUNTANTS
CITY OF FAIRHOPE, ALABAMA
WATER AND WASTEWATER FUND
STATEMENT OF INCOME AND RETAINED EARNINGS
WITH YEAR ENDED SEPTEMBER 30, 1985 BUDGET
FOR THE YEARS ENDED SEPTEMBER 30, 1985 AND 1984
1985
1984
Over (Under)
Actual
Budget
Budget
Actual
OPERATING REVENUES
Sales of water
$ 733,345
$ 730,000
$ 3,345 $
709,668
Wastewater charges
219,130
220,000
(870)
211,702
Wastewater connection charges
29,975
20,000
9,975
14,925
Other charges, sales and receipts
64
100
(36)
145
Total operating revenues
982,514
970,100
12,414
936,440
OPERATING EXPENSES
Chamber of Commerce contract
1,200
1,200
-
-
Electric power
150,864
140,000
10,864
136,348
Operating, maintenance and
administrative salaries
(Note 17)
256,233
246,450
9,783
2329323
Audit fees
3,245
3,000
245
3,055
Bad debts
-
500
(500)
-
Bond issue expense
Christmas bonuses
1,511
1,600
1,511
1,350
-
250
1,511
1,345
Computer expenses
1,988
2,000
(12)
2,352
Legal
-
500
(500)
-
Dues and memberships
395
400
(5)
385
Engineering services
9,942
8,000
1,942
91550
Gasoline and oil
8,548
9,000
(452)
8,450
Insurance - casualty
27,682
23,000
4,682
23,164
Insurance - employees' group
32,123
36,000
(3,877)
27,912
Plant maintenance and
operating supplies
95,035
66,000
29,035
101,280
Maintenance -vehicles and equipment
18,207
10,000
8,207
9,881
Miscellaneous
Office supplies and postage
43
1,302
600
4,700
(557)
(3,398)
612
8,106
Payroll taxes
20,051
18,000
2,051
17,104
Professional services
4,949
1,000
3,949
1,546
Employees' retirement
16,759
16,000
759
15,173
Rental
112
400
(288)
412
Telephone
4,641
4,500
141
4,405
Travel, training and school
1,448
1,200
248
866
Uniforms
2,836
2,500
336
2,652
Trustee fees
1,320
1,510
(190)
1,510
Total operating expenses
662PO34
599,321
62,713
609,942
EARNINGS FROM OPERATIONS BEFORE
DEPRECIATION, OTHER INCOME AND
OTHER DEDUCTIONS
(carried forward) 320,480 370,779 (50,299) 326,498
PARKER, FICKLING, HARTMANN & HANAK, P.C. CERTIFIED PUBLIC ACCOUNTANTS
73
1985
1984
Over (Under)
Actual
Budget
Budget
Actual
EARNINGS FROM OPERATIONS BEFORE
DEPRECIATION, OTHER INCOME AND
OTHER DEDUCTIONS
(brought forward)
$ 320,480
$ 370,779
$ (50,299)
$ 326,498
OTHER INCOME (DEDUCTIONS)
Interest expense
(180,437)
(186,000)
(5,563)
(184,464)
Interest earned
26,595
20,000
(6,595)
27,144
Earnings,transferred to the
General Fund of the City
of Fairhope
(20,000)
Loss on sale of asset
(341)
341
-
Total other income
(deductions)
(154,183)
(166,000)
(11,817)
(177,320)
NET INCOME BEFORE DEPRECIATION
166,297
204,779
(38,482)
149,178
DEPRECIATION EXPENSE (Note 18):
On assets acquired with own funds
160,225
156,895
On assets acquired from
contributions in aid to
construction
53,955
51,468
Total depreciation expense
214,180
200,000
14,180
208,363
NET INCOME (LOSS)
(47,883)
4,779
(52,662)
(59,185)
Add credit arising from transfer
of depreciation to contributions
in aid to construction account
(Note 18) 53,955
Net income transferred to
Retained earnings 6,072
Retained earnings at beginning of
Year:
As previously reported
Adjustment (Note 21)
Restated 1,065,471
RETAINED EARNINGS AT END OF YEAR $1,071,543
- 53,955 51,468
$�4,7799 $1, 93� (7,717)
766,904
306,284
1,073,188
$1,065,471
The notes to the financial statements are an integral part of this statement.
^�-+-PARKER, F:C;K;.IN6,NAk MAhNI NANAK, D.C. CEA TIFIED PUSUC ACCOUNTANTS