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HomeMy WebLinkAboutAGENDA REPORT 1998 1021 CC REG ITEM 11DI IMF I T CITE' OF ti1OORFARK, CALTFORNL-k City Council Meeting of -- 10 .21 -q1 5 ACTION: A ro% CITY OF MOORPARK -- CITY COUNCIL AGENDA REPORT BY: -- TO: The Honorable City Council FROM: John E. Nowak, Assistant City Manager < =� DATE: 07 October 1998 (Council meeting of 10- 21 -98) SUBJECT: Receive and File Annual Financial Report for Year Ending June 30, 1998 for Moorpark Mosquito Abatement District. Discussion: In July 1998 the Moorpark Mosquito Abatement District (MMAD) was dissolved by action of the Local Agency Formation Commission and the Ventura County Board of Supervisors. The City of Moorpark became the successor agency for the District pursuant to State law on July 1, 1998. The firm of Shallenberger & Roberts (the District's previous auditors), as required by State law, conducted an annual independent audit of the MMAD financial operations for the fiscal year 1997 -98. The audit report was reviewed by the Assistant City Manager and the Accounting Manager and found to accurately reflect the known conditions of the MMAD. As successor agency, the Moorpark City Council is requested to formally receive and file the "Moorpark Mosquito Abatement District Financial Statements for the Year Ended June 30, 1998." Recommendation: That the City Council receive and file the "Moorpark Mosquito Abatement District Financial Statements for the Year Ended June 30, 1998" as prepared by the firm of Shallenberger & Roberts. Attachment: Financial Report , ,a ex d"-.""a --k For the Year Ended June 30, 1998 COUNTY OF VENTURA rDCRPARK M SQUIT 0 ABATEMENT' DISTRICT June 30, 1998 James Hartley William IaPerch Eloise Brown DISTRICT KEY PERSONNEL Mark Westerline District Manager Leta Yancy E)cecutive Secretary I . 1 ^ , 1 r ••;. - • •.• UK& - a is • �• June 30, 1998 Independent Auditor's Report Combined Balance sheet Statement of Revenues, Expenditures, and Changes in Fund Balance - General Fund Statement of Revenues and Expenditures - Budget and Actual Notes to Financial Statement Statistical Section I . 1 n . 1 Page 1 2 3 4 5 8 SHALLENBERGER & ROBERTS CPA SHARON M R08F1M CPA I Igo- y •-• • • • . ran- ■ • .� • _ 61 We have audited the accoapanyi g general purpose financial statements of Moorpark Mosquito Abatement District as of June 30, 1998 and for the year then ended, as listed in the Table of Contents. These general purpose financial statements are the responsibility of Moorpark Mosquito Abatement District Out responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in aeeardanee with generally aooepted government auditing standards and the State Controller's Minimum m m, Audit Requirement for California Special Districts. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In a= opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of Moorpark Mosquito Abatement District, as of June 30, 1998, and the results of its operations for the year then ended in conformity with generally accepted accounting principles as well as accounting systems prescribed by the state Controller's Office and state regulations governing special districts. Our audit was conducted for the purpose of farming an opinion an the general purpose financial statements taken as a whole. The statistical data listed in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of Moorpark Mosquito Abatement District. Such information has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements, aryl, accordingly, we express no opinion on it. The accxmpanying financial statements have been prepared assuming that the District will continue as a going concern. As discussed in Note 6 to the financial statements, the District's Board of Trustees, the Local Agency Formation Commission and the Ventura County Board of Supervisors have voted to dissolve the District. The District's assets and liabilities will be I . 1 (1, , 1 l inoorporated into the City of Moompark, the designated suooesscr agency. Management's plans regarding these matters are also described in Note 6. The financial statements do not include any adjustments that might result from the cutcaae of the dissolution. ti r 0 0 y is -,etDo M :1 Do -j Ventura, Calif=ia September 24, 1998 CURRENT ASSET'S Cash in Treasury Petty cash Interest receivable COUNTY y M. C I: / Ise :A M SHEET —For the Year RXIed June 30, 1998 TmAr S GENERAL OMCRANDUM ONLY) GENERAL FI}0E:D June 30, June 30 — FUM LE'I'S 1998 1997 $1,589,012 $ - 200 - 21,800 - $1,589,012 $1,454,075 200 200 21,800 19,941 PROPERTY, PLANT & EQUIRMT Building - 53,452 53,452 53,452 Equipnent - 53,345 _ 53,345 53,345 TOTAL ASSET'S 1,611,012 106 797 1,7179809 1 581 013 LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable Due to City of Moorpark Accrued salaries Accrued vacation Payroll taxes payable $ 3,856 $ - $ 3,856 $ 3,769 18,581 - 18,581 - - 6,910 - 4,336 2,646 - 2,646 529 TOTAL LIABILITIES 25,083 - _ 25,083 15.544 EQUI'T'Y Fund balance available Rind balance designated 1,285,929 - 1,285,929 1,158,672 Investment in fixed assets 300,000 - 300,000 300,000 - _106,797 106,797 106,797 TOTAL EQUITY 1,585,929 106,797 _1,692,726 1,565,469 TOML LIABILITIES AND EQUITY $1,611,012 $106,797 11,717,809 1,581,013 See accompanying accountant's report. The notes to the financial statements are an integral part of this statement. CwM 4Rf-jM OF 1' GENERAL FUND For - Year Ended 1 - 30, 9MCRANDUM ONLY) June 30, June 30, 1998 1997 REVENUES Property tax - current secured $ 147,487 $ 141,400 Prey tax - current w-Asecured 5,060 4,436 Property tax - prior secured - - Property tax - current supplemental 2,449 1,266 Property tax - Prior unsecured 185 209 Property tax - prior supplemental 260 250 Penalties, costs, delinquent taxes 140 126 Interest earnings 85,453 76,394 Hcmeowners property tax relief 2,812 2,767 In -lieu taxes - other - 270 Moorpark Redevelopment Incremental Tax 23,873 14,003 Miscellaneous other revenue - 428 Transfer to City of Moorpark 4.336 'DOTAL REVENUES 272,055 241.549 EXPENDITURES Salaries 86,612 83,932 OASDI contribution 14,453 6,344 GroW insurance 12,157 6,003 Tele0ione 735 730 Insurance 10,940 12,517 Workman's Camp Insurance 7,206 5,483 Repairs and maintenance 498 1,992 Membership and dues 1,231 1,091 Printing /binding 25 2,108 Office supplies and expertise 1,248 2,792 Boardmember fees 1,700 3,300 Professional services 2,750 5,004 Ground lease 990 1,080 Minor equipment 183 55 Clothing & personal supplies 147 426 Special district expense - 01 1,037 4,384 Special district expense - 02 227 375 Private vehicle mileage 381 238 Conferences and seminars 85 160 Gas, diesel fuel 1,176 1,766 Utilities 1,017 969 Fixed asset purchases 2.179 TOTAL EXPENDITURES 144.798 142,928 EXCESS OF REVENUES OVER EXPENDITURES 127,257 98,621 FUND BALANCE - BEGINNING OF YEAR 1.458.672 1.360,051 FUND BALANCE - END OF YEAR 11,585,92 9 1,458,672 See acoanpanying accountant's report. The notes to the financial statements are an integral part of this statement. CO QM OF I' MOORPARK NDSQUrID ABATEMENT DISMCr For - Year Ended June 30, 1998 Property tax - current secured $ 147,487 Property tax - current unsecured 5,060 Property tax - prior secured - Property tax - current supplemental 2,449 Property tax - prior unsecured 185 Property tax - prior supplemental 260 Penalties, costs, delinquent taxes 140 Interest earnings 85,453 Homeowners property tax relief 2,812 In -lieu taxes - other - Moorpark Redevelopment Incremental Tax 23,873 Miscellaneous other revenue - Transfer to City of Moorpark 4,336 EXPENDITURES Salaries Extra help OASDI contribution Group insurance Miscellaneous clothing and supplies Telephone Fire, earthquake and liability insurance Workman's Comp Insurance Repairs and maintenance Membership and dues Printing /binding Office supplies and expense Boardmember fees Professional services Attorney services Ground lease Minor equipment Special district expense - 01 Special district expense - 02 Private vehicle mileage Conferences and seminars Gas, diesel fuel Utilities Fixed assets Contingency 120.10" W4111 ' 272,055 86,612 14,453 12,157 147 735 10,940 7,206 498 1,231 25 1,248 1,700 2,750 990 183 1,037 227 381 85 1,176 1,017 144,798 127 257 FAVORABLE BUDGET (UNFAVORABLE) $ 135,000 4,000 1,000 1,000 200 50 40,000 15,000 196,250 86,000 2,000 6,700 8,500 460 1,000 13,000 6,500 4,850 1,000 600 1,100 3,000 3,300 5,100 1,100 300 3,000 1,000 400 1,200 1,800 1,200 4,700 15,000 172,810 23,440 $ 12,487 1,060 (1,000) 1,449 185 60 90, 45,453 2,812 8,873 4,336 75,805 (612) 2,000 (7,753) (3,657) 313 265 2,060 (706) 4,352 (231) 575 (148) 1,300 550 5,100 110 117 1,963 773 19 1,115 624 183 4,700 15,000 28,012 103 817 See acccapanying accountant's report. The notes to the financial statements are an integral part of this statement. COWN OF a r June 30, 1998 NME 1 - SCMRY OF SIGNMC M AL�O0@ -- nG Pc L icim Orcanization of the District The District is comprised of an area of twenty -one square miles. It was formed on October 25, 1960, under the provisions of the State of California, Health and Safety Code, Section 2200 et seq. The District is governed by a board of five trustees each serving a two -year term. Four trustees are appointed by the County Board of Supervisors and one trustee is appointed by the Moorpark City Council. The trustees may receive actual necessary expenses incurred on district business, or in lieu of expenses, a sum not to exceed $50.00 per month per member for such expenses. The District may borrow money not to exceed fifteen cents per one hundred dollars of assessed valuation, the loan to be repaid in the current or following year. The maxim tax rate is $.15 per $100.00 of assessed valuation; however, the Board of Supervisors may increase this rate to maximum of $.40 if necessary. Basis of Aocountira The accenting and financial reporting treatment applied to a fund is determined by its measurement focus. All vemi funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Tine modified accrual basis of accounting is used by all governmental fund types. Under the modified accrual basis of accenting, revenues are recognized when susceptible to accrual (i.e., when they became both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. A one -year availability period is used for revenue recognition for all other g fund revenues. Expenditures are recorded when the related fund liability is incurred. The General Fund is the general operating fund of the District. Revenues are derived primarily from property taxes. - 5 - CO UM OF a i' MOMA1W MOSQ= ABATEMERr DISIRICT J. TO 1• M.. - y. I I S June 30, 1998 Cash In Treasury The County of Ventura receives, distributes, and accounts for the district's cash balance in an unclassified account. 0. . - - - Delinquent taxes are considered as income in the year in which collections are made. Taxes receivable include only current year taxes collected by the County of Ventura prior to June 30. The Board annually adopts a formal budget. Monthly financial data on microfiche compares the budget to actual revenue and expenditures. Risk ManacLegnent The District is exposed to various risks of loss related to torts, theft, damage to, or destruction of assets, and errors or omissions. Management has transferred these risks through the purchase of commercial insurance. The insurance coverage is consistent with the prior year which was sufficient to cover all Down claims. .:. }. Fixed assets are recorded at historical cost. A summary of changes follows: Balance July 1, 1997 Additions Deletions Balance June 30, 1998 1;_1611001 , 36 11;V13 53,452 53,345 $53,452 $53,345 Expenditures for repairs and maintenance are charged to expense. Costs of properties retired or otherwise disposed of have been eliminated from the accounts, and gains or losses on disposition are included in operations. COUNTY OF VENTURA ••-•. R • • • ABATEMERr DISTRICT • r: TO FnQHCIAL SVCEKMT June 30, 998 I, •IY' � K� CSC Y�� ;i11�i� :�, .� «� At the Hoard meeting of August 7, 1990, the Board approved $300,000 of the Fund Balance to be designated for contracting for emergency abatement. During the current fiscal year, the District transferred its employees' accrued vacation balance to the City of Moorpark. As part of the dissolution process, the District's full time employees became employees of the City of Moorpark. The District pays the City for the services of these employees. N= 5 - LEASE The District entered into a lease agreement with the Ventura County Waterworks District No. 1 for the land on which the District's facilities are located. The lease commenced on July 1, 1995, for a term of three years. The lease amount is $90 per month. on August 5, 1997, the Board of Trustees voted to recommend dissolution of the District. On July 17, 1998, the Local Agency Formation Commission (IAFOO) approved the proposal to dissolve the District and appointed the County of Ventura as the conducting authority. On July 14, 1998, the Board of Supervisors of the County of Ventura approved the dissolution of the District designating the City of Moorpark as the successor agency. Therefore all assets and liabilities of the District will be transferred to the City of Moorpark. The financial statements do not include any adjustments that might result from the outcome of the dissolution. �r� 1991 -92 1,719,387,898 65,974,798 1992 -93 11813,914,098 69,444,369 1993 -94 11816,331,503 66,066,832 1994 -95 1,878,757,136 61,419,641 1995 -96 1,928,942,616 68,682,774 1996 -97 1,983,900,997 74,306,717 1997-98 2,049,538,456 79,324,909 - 8 -