ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER JI, 2012

Transcription

1 ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER JI, 2012

2 ROBERTSON FIRE PROTECTION DISTRICT OF ST.LOUIS COUNTY, MISSOURI ST. LOUIS, MISSOURI CONTENTS PAGE INDEPENDENT AUDITORS' REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS: Statement Of Net Position Statement Of Activities Balance Sheet - Governmental Funds Reconciliation Of The Statement Of Net Position Of Governmental Funds To The Balance Sheet Statement Of Revenues, Expenditures And Changes In Fund Balances - Governmental Funds Reconciliation Of The Statement Of Revenues, Expenditures And Changes In Fund Balances Of Governmental Funds To The Statement Of Activities Statement Of Fiduciary Net Position Statement Of Changes In Fiduciary Net Position Notes To Financial Statements REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule - General Fund Budgetary Comparison Schedule - Ambulance Fund Budgetary Comparison Schedule - Pension Fund Note To Required Supplementary Information Schedule Of Funding Progress Other Post Employment Benefit Plan SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule - Dispatch Fund Budgetary Comparison Schedule - Debt Service Fund Budgetary Comparison Schedule - Capital Projects Fund Schedule Of Principal Office Holders Schedule Of Insurance In Force COMPLIANCE SECTION: Report On Compliance And On Internal Control Over Financial Reporting Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards IO

3 Members of the Board of Directors of ROBERTSON FIRE PROTECTION DISTRICT OFST.LOUISCOUNTY,MISSOURI INDEPENDENT AUDITORS' REPORT -- BOTZ, D~L COMPANY, P.C. CERTIFIED-PUBLIC ACCOUNTANTS AND ADVISORS_ Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, and each major fund and the nonrnajor fund, of Robertson Fire Protection District of St. Louis County, Missouri, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. -1- TWO WESTBURY DRIVE ST. CHARLES, MO ( 636) FAX (636) botzdeal@hotzdealcom

4 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and each major fund and the nonmajor fund, of the Robertson Fire Protection District of St. Louis County, Missouri, as of December 31, 2012, and the respective changes in financial position, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters In accordance with Government Auditing Standards, we have also issued our report dated June, 2013, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages 3 through 8 and 30 through 34 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Robertson Fire Protection District's basic financial statements as a whole. The supplementary information is presented for purposes of additional analysis and are not a required part of the basic financial statements. This information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the financial statements themselves, and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the fmancial statements as a whole. June 2,

5 ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED DECEMBER 31, 2012 This section of Robertson Fire Protection District of St. Louis County, Missouri's (the District) annual financial report presents management's discussion and analysis of the District's financial activity for the year ended December 31, In order to have a comprehensive understanding of the Management Discussion and Analysis, we recommend that the attached financial statements, including all notes to the financial statements, be read in their entirety. Using this Annual Report In 2004, the District implemented GASB 34 - Governmental Accounting Standards Board Statement - Basic Financial Statements - and Management's Discussion and Analysis for State and Local Governments. The attached financial statements are reported using this reporting model. The District's basic financial statements are designed to emulate corporate presentation models whereby all District activities are consolidated. This approach is intended to summarize and simplify the analysis of the costs associated with various emergency services provided by the District for the benefit of its residents. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to the basic financial statements. Required supplementary information and additional supplementary information are also included in addition to the basic financial statements. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business. The government-wide financial statements include the Statement of Net Position and the Statement of Activities. The Statement of Net Position presents all of the District's assets and liabilities which measure the District's overall financial health. The increases and decreases in net position can be monitored to determine whether the District's financial position is improving or deteriorating. -3-

6 The Statement of Activities presents information reflecting how the District's net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flow. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes, earned but unused compensation, etc.) The government-wide financial statements report functions of the District that are principally supported by taxes and charges for services. The governmental activities for the District include fire protection, ambulance and EMS services, dispatching services and debt services. It should be noted that the District currently has no business-type activities. Fund Financial Statements The fund financial statements provide grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure compliance with finance-related legal requirements. Governmental Funds The District's basic services are included in the governmental funds. These funds are used to account for essentially the same functions reported as governmental activities in the governmentwide financial statements. These fund statements measure current financial resources and uses or in essence, near-term inflows and outflows of expendable resources, as well as the balances of expendable resources available at the end of the year. Such information may be useful in evaluating a District's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide fmancial statements. By doing so, readers may better understand the long-term impact of the District's near-term financing decisions. Both, the Governmental Fund Balance Sheet and the Statement Of Revenues, Expenditures And Changes In Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Fiduciary Funds Fiduciary funds are used to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, or other governmental units and/or other funds. The District's Fiduciary Fund is not reflected in the government-wide fmancial statements because the resources of this fund are not available to support the District's own programs. The District's fiduciary fund is the Employee Benefit Trust Fund. Notes to the Basic Financial Statements The notes to the basic financial statements provide additional information that is essential to a complete understanding of the information reported in the government-wide and fund fmancial statements. -4-

7 Required and Other Supplementary Information In addition to the basic financial statements and accompanying notes to the basic financial statements, this financial report also contains certain required supplementary information. Required Supplementary Information includes a Budgetary Comparison Schedule for the General Fund, Ambulance Fund and Pension Fund. The Budgetary Comparison Schedules for the Debt Service, the Capital Project and the Dispatch Fund can be found in the Supplementary Information section. Financial Analysis of the District as a Whole Government-Wide Financial Analysis As mentioned earlier, net position may serve over time as a useful indicator of a government's financial position. The condensed statement of net position as of December 31, is as follows: Statement of Net Position Increase (Decrease) Assets: Current and other assets Capital assets Total Assets 13,970,388 6,189,636 20,160,024 15,155,051 6,529,337 21,684,388 (1,184,663) (339,7012 (1,524,3642 Liabilities: Current and other liabilities Long-term liabilities Total Liabilities 594,416 7,670,818 8,265, ,669 7,899,518 8,555,187 (61,253) (228,7002 (289,9532 Net Position: Net investment in capital assets Restricted Unrestricted Total Net Position 2,525,918 6,067,327 3,301,545 11,894, 790 2,426,206 6,310,607 4,392,388 13,129,201 99,712 (243,280) (1,090,8432 (1,234,411) The District's assets exceeded liabilities by 11,894,790 as of December 31, Of this amount, 2,525,918 is invested in capital assets, net ofrelated debt; 6,067,327 is restricted for debt service, dispatching and ambulance services; and 3,301,545 is unrestricted and available to provide for current and future obligations of the District. This schedule is prepared from the District's Statement of Net Position, which is presented on an accrual basis of accounting whereby assets are capitalized and depreciated. The District's net position decreased by 1,234,411 during the year ended December 31, This decrease was mainly due to the decrease in tax revenue and contract revenue of359,690 in 2012 compared to 2011 in combination with an increase in expenses of128,987. The key elements of the decrease in net position are presented in the following condensed statement of changes in net position: -5-

8 Statement of Activities Increase (Decrease} Revenues: Program revenues: Charges for service 249, ,424 21,176 General revenues: Taxes 3,285,572 3,505,885 (220,313) Contract revenues 3,374,805 3,514,181 (139,376) Interest income 17,622 19,432 (1,810) Gain on the sale of capital assets 6,630 (6,630) Miscellaneous 12,743 22,656 (9,913} Total revenues 6,940,342 7,297,208 (356,866} Expenses: Public safety 7,917,787 7,753, ,803 Interest and fiscal charges 192, ,988 {15,522) Total expenses 8,110,253 7,961, ,281 Increase (Decrease) in net position (1,169,911) (664,764) (505,147) Change in accounting principle (64,500) (64,500) Net position, beginning of year 13,129,201 13,793,965 (664,764} Net position, end of year 11,894,790 13,129,201 (1,234,411) Program revenue includes activities that have the characteristics of exchange transactions, such as commercial and residential inspections and ambulance billings. General revenues include activities that have the characteristics of non-exchange transactions, such as property taxes and investment earnings. Expenses of the District are for the purpose of providing fire protection, emergency medical services and operational activities of the District. The District's expenses are funded primarily through general revenues. Taxes and contract revenue decreased 5.I% in 2012 from This decrease was mostly due to the timing and amount of surtax received. Fund Analysis General Fund General Fund expenditures exceeded General Fund revenues by 484,608. This is primarily due to the decrease in surtax payments and an increase in personnel related expenditures. Ambulance Fund Ambulance Fund revenues exceeded Ambulance Fund expenditures by 38,002. The increase in 2011 was primarily the result of taxes collected in this fund exceeding the costs of providing ambulance services. The excess was less than the prior year due to a decrease in tax receipts. -6-

9 Dispatch Fund Dispatch Fund revenues exceeded Dispatch Fund expenditures by 50,843. The increase was primarily because the District pays North Central County Fire Alarm System (NCCF AS).04 per 100 of assessed property, but collects.05. Capital Projects Fund The Capital Projects Fund expenditures exceeded revenues by 200,587. This is due primarily to the spending of bond proceeds from bonds issued in Debt Service Fund Debt Service Fund expenditures exceeded Debt Service Fund revenues by 127, The decrease was primarily the result of bond payments exceeding tax receipts. Tax rates are adjusted depending on the amount of fund balance as it relates to future debt service requirements. Budget Analysis The District adopts an annual budget for each of its governmental funds, pursuant to Missouri State Statutes. Annually, as allowed by Missouri State Statutes, the District amends the budgets of each fund to reflect approved changes in spending requirements and unforeseen events that occurred during the most recent year. The difference between the original budget as adopted by the Board for 2012 and the final amended budget as approved by the Board for 2012, in January 2013, was primarily due to the timing of tax receipt collections from St. Louis County and expenditure overruns. Timing of tax receipt collections could result from a) the economy, orb) tax collections received by St. Louis County, or c) the processing of tax collections by St. Louis County. Capital Assets GASB 34 requires the District to include in capital assets all real estate to house firefighters and ambulance personnel and emergency vehicles, the District's administrative building and all emergency and administrative equipment and vehicles owned by the District. The District has adopted a capitalization policy with specific useful lives by capital asset category Increase (Decrease} Land Construction in progress Buildings and improvements Furniture and equipment Vehicles Total Less: Accumulated depreciation Net Capital assets 649, ,259 4,845, ,764 3,122,531 9,449,505 (3,259,869) 6,189, ,629 4,845, ,764 3,122,531 9,279,246 (2,749,909} 6,529, , ,259 (509,960} (339,7011 More detailed information on the District's capital assets is presented in the notes to the financial statements. -7-

10 Long-Term Debt During the year ended December 31, 2008, the District issued 4,000,000 in fire protection bonds, with average interest rates ranging from 3.25% through 5.5%. These bonds were issued for the purpose of funding the renovation of a firehouse and the purchase of firefighting and ambulance vehicles and equipment. In 2010 the District issued 1,275,000 in General Obligation Fire Protection Refunding Bonds to provide resources to defease a portion of the 2000 series bonds. The 2010 bonds have interest rates ranging from 3.25% to 3.50%. During the year ended December 31, 2011, the District issued 1,000,000 in General Obligation Fire Protections Bonds, with interest rates ranging from 2.0% to 6.0%. The bonds were issued for the purpose of funding the renovation of a firehouse. At the end of the year, the District had outstanding Fire Protection Bonds totaling 4,900,000. More detailed information on the District's long-term liabilities is presented in the notes to the financial statements. Economic Factors The District serves over 45,000 (daytime population) and has mutual aid agreements with all Fire Protection Districts and Fire Departments in the 'Region C' area of Missouri. The District also participates in the statewide mutual aid program through the State of Missouri's Division of Fire Safety. While the District includes office buildings, regional and local shopping areas, churches, residential care and light manufacturing facilities, it primarily consists of single and multi-family residential housing. Hence, the District is somewhat insulated from significant changes in the economy. Contact Information This financial report is designed to provide a general overview of the District's finances for all those with an interest in the District's finances. This financial report demonstrates the District's spirit of full disclosure to provide readers of this report with an overview of the District's financial operations. For questions or requests for additional information, please direct requests to the Chief of the Fire Protection District at Missouri Bottom Road, Hazelwood, MO

11 ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI STATEMENT OF NET POSITION DECEMBER 31, 2012 Governmental Activities ASSETS Cash and investments Taxes receivable: Property Contract revenues Other Ambulance billings receivable Prepaid expenses Restricted cash and investments Capital assets - net: Nondepreciable Depreciable TOTAL ASSETS LIABILITIES Accounts payable Accrued wages Accrued interest payable Payroll liabilities Other liabilities Deposit bond issue Noncurrent liabilities: Due in one year Due in more than one year TOTAL LIABILITIES NET POSITION Net investment in capital assets Restricted for: Ambulance services Bond retirement Dispatch services Pension benefits Unrestricted TOTAL NET POSITION 6,237,118 2,788,761 3,317,338 50, ,644 91,656 1,336, ,888 5,539,748 20,160, , ,107 56,480 32,687 37,379 50, ,000 7,095,818 8,265,234 2,525,918 3,568,698 1,229, ,342 1,015,745 3,301,545 11,894, 790 The accompanying notes are an integral part of these financial statements. -9-

12 ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2012 Program Revenue Net (Expense) Revenue and Change in Net Position Functions/Programs Governmental Activities Public safety Interest and fiscal charges TOTAL GOVERNMENTAL ACTIVITIES Expenses 7,917, ,466 8,110,253 Charges for Service 249, ,600 Governmental Activities (7,668,187) (192,466) (7,860,653) Taxes Contract revenues Interest income Other miscellaneous revenue TOTAL GENERAL REVENUES CHANGE IN NET POSITION NET POSITION - BEGINNING OF YEAR, AS PREVIOUSLY STATED Change in accounting principle - GASB 65 NET POSITION - BEGINNING OF YEAR, AS RESTATED NET POSITION - END OF YEAR 3,285,572 3,374,805 17,622 12,743 6,690,742 (1,169,911) 13,129,201 (64,500) 13,064,701 11,894,790 The accompanying notes are an integral part of these financial statements. -10-

13 ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI BALANCE SHEET- GOVERNMENTAL FUNDS DECEMBER 31, 2012 Capital General Ambulance Debt Service Pension Projects Fund Fund Fund Fund Fund ASSETS Cash and investments 3,501,426 2,085, ,940 34,407 Receivables: Property taxes 1,214, , , ,976 Contract revenues 1,445,003 1,127, , ,720 Other 50,582 Ambulance billings receivable 148,644 Prepaid expenses 91,656 Due from other funds 8,970 (637,532) 55, ,055 26,812 Restricted cash and investments 1,336,289 TOTAL ASSETS 6,312,398 3,671,641 1,229,542 1,120,158 1,363,101 LIABILITIES Accounts payable 22,046 11, ,413 46,819 Payroll liabilities 26,266 6,421 Other liabilities 37,379 50,000 Accrued wages 127,864 85,243 TOT AL LIABILITIES 213, , ,413 96,819 DEFERRED INFLOWS OF RESOURCES Unavailable revenue: Property taxes 498, , , ,036 Contract revenues 225, ,259 53,067 50,767 TOTAL DEFERRED INFLOWS OF RESOURCES 724, , , ,803 FUND BALANCES Restricted for: Ambulance service 3,003,520 Debt service 1,059,384 Pension 852,942 Capital projects 1,266,282 Dispatching Assigned: Future appropriations 1,000,000 Other post employment benefits 3,000,000 Unassigned 1,374,256 TOTAL FUND BALANCES 5,374,256 3,003,520 1,059, ,942 1,266,282 TOT AL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 6,312,398 3,671,641 1,229,542 1,120,158 1,363,101 Nonmajor Fund Dispatch Fund Total 65,433 6,237,118 68,246 2,788,761 81,180 3,317,338 50, ,644 91,656 58,689 1,336, ,548 13,970,388 20, ,763 32,687 87, ,107 20, ,936 28,015 1,144,675 12, ,765 40,714 1,663,440 3,003,520 1,059, ,942 1,266, , ,628 1,000,000 3,000,000 1,374, ,628 11,769, ,548 13,970,388 The accompanying notes are an integral part of these financial statements. -11-

14 ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI RECONCILIATION OF THE STATEMENT OF NET POSITION OFGOVERNMENTALFUNDSTOTHEBALANCESHEET DECEMBER 31, 2012 Amounts reported for governmental activities in the statement of net position are different because: Total fund balance per balance sheet Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Receivables not collected in the current period are not available to pay current expenditures and, therefore, are deferred in the funds. Interest payable recorded in the statement of net position does not require the use of current financial resources and, therefore, is not reported as an expenditure in the governmental funds. Future benefits for unused sick time and other post employment benefits liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Long-term liabilities such as bonds payable and the related deferred amounts, are not due and payable in the current period and therefore, are not reported in the funds. Net position of governmental activities 11,769,012 6,189,636 1,663,440 (56,480) (2,740,818) (4,930,000) 11,894, 790 The accompanying notes are an integral part of these financial statements. -12-

15 ROBERTSON FIRE PROTECTION DISTRICT OFST.LOUISCOUNTY,MISSOURI STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2012 Nonmajor Capital Fund General Ambulance Debt Service Pension Projects Dispatch Fund Fund Fund Fund Fund Fund Total REVENUES Property taxes 1,450,539 1,132, , ,973 81,529 3,331,363 Contract revenues 1,591,433 1,240, , ,643 89,376 3,652,479 Service fees 185, ,782 Interest 11,683 2, , ,622 Permits and reports 63,818 63,818 Miscellaneous income 7,558 5,185 12,743 TOTAL REVENUES 3,125,031 2,561, , ,801 2, ,999 7,263,807 EXPENDITURES Public Safety: Personnel 2,560,571 1,830,676 4,391,247 Employee benefits 569, , ,618 1,633,613 Building and mobile equipment 136,174 29, ,252 Administration and miscellaneous 343, , ,893 Dispatching 120, ,156 Capital outlay 202, ,625 Debt service: Principal, interest and fiscal charges 842, ,923 TOTAL EXPENDITURES 3,609,639 2,523, , , , ,156 8,009,709 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (484,608) 38,002 (127,735) (21,817) (200,587) 50,843 (745,902) FUND BALANCES - BEGINNING OF YEAR 5,858,864 2,965,518 1,187, ,759 1,466, ,785 12,514,914 FUND BALANCES - END OF YEAR 5,374,256 3,003,520 1,059, ,942 1,266, ,628 11,769,012 The accompanying notes are an integral part of these fmancial statements. -13-

16 ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER31, 2012 Amounts reported for governmental activities in the statement of activities are different because: Change in fund balance-total governmental funds The acquisition of capital assets requires the use of current fmancial resources but has no effect on net position. The cost of capital assets is allocated over their estimated useful lives and are reported as depreciation expense in the statement of activities. Revenues that do not provide current financial resources are not included in the fund fmancial statements. Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Repayment of bond principal and capital leases is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Bond premium costs associated with long-term bonds are capitalized on the government-wide statements and amortized over the life of the bonds in the governmental funds since they do not require the use of current financial resources: Amortization of bond premium Interest payable does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds. Change in net assets of governmental activities (745,902) 170,259 (509,960) (323,465) (411,300) 630,000 10,000 10,457 (1,169,911) The accompanying notes are an integral part of these financial statements. -14-

17 ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI STATEMENT OF FIDUCIARY NET POSITON DECEMBER31, 2012 Employee Benefit Trust Fund ASSETS Investments Contribution receivable TOTAL ASSETS 135,541 12, ,841 NET POSITION Held in trust for pension and employee benefits 147,841 The accompanying notes are an integral part of these financial statements. -15-

18 ROBERTSON FIRE PROTECTION DISTRICT OF ST. LOUIS COUNTY, MISSOURI STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED DECEMBER 31, 2012 ADDITIONS Employer contributions Net increase in fair value of investments TOTAL ADDITIONS Employee Benefit Trust Fund 24,600 14,664 39,264 DEDUCTIONS Administrative expenses TOTAL DEDUCTIONS 1,320 1,320 INCREASE IN NET POSITION 37,944 NET POSITION - BEGINNING OF YEAR 109,897 NET POSITION - END OF YEAR 147,841 The accompanying notes are an integral part of these financial statements. -16-

19 ROBERTSON FIRE PROTECTION DISTRICT OFST.LOUISCOUNTY,MISSOURI NOTES TO FINANCIAL STATEMENTS DECEMBER 31, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Robertson Fire Protection District of St. Louis County, Missouri, (the District) provides fire protection, prevention, and emergency ambulance service to its residents. A. REPORTING ENTITY The District applies the criteria set forth in GASB Statement No. 14, The Financial Reporting Entity (GASB 14), to determine which governmental organizations should be included in the reporting entity. The inclusion or exclusion of component units is based on the elected officials' accountability to their constituents. The financial reporting entity follows the same accountability. In addition, the financial statements of the reporting entity should allow the user to distinguish between the primary government (including its blended component units, which are, in substance, part of the primary government) and discretely presented component units. Criteria for inclusion of an entity into the primary governmental unit (in blended or discrete presentation) includes, but is not limited to, legal standing, fiscal dependency, imposition of will and the primary recipient of services. The District presently has no component units included within its reporting entity. B. BASIC FINANCIAL STATEMENTS Basic financial statements consist of the following: Government-wide financial statements Fund financial statements, and Notes to the basic financial statements. Government-Wide Financial Statements - The reporting model includes financial statements prepared using full accrual accounting for all the District's nonfiduciary activities. This approach includes not just current assets and liabilities, but also capital and other long-term assets as well as long-term liabilities. Accrual accounting also reports all of the revenues and costs of providing services each year, not just those received or paid in the current year or soon thereafter. Government-wide financial statements include the following: Statement of Net Position -The statement of net position is designed to display the financial position of the Primary Government (governmental and business-type activities). The District reports capital assets in the government-wide statement of net position and reports depreciation expense in the statement of activities. The net position of the District is broken down into three categories 1) net investment in capital assets 2) restricted; and 3) unrestricted. The District has no business-type activities. -17-

20 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued B. BASIC FINANCIAL STATEMENTS - continued Statement of Activities - The statement of activities reports, expenses and revenues in a format that focuses on the cost of each of the District's functions. The expense of individual functions is compared to the revenue generated directly by the function. Accordingly, the District has recorded capital assets and certain other long-term assets and liabilities in the statement of net position and has reported all revenues and the cost of providing services under the accrual basis of accounting in the statement of activities. The District has elected to implement the requirements of GASB 34 related to infrastructure assets from January 1, 2004 forward. The government-wide financial statements consist of the statement of net position and the statement of activities and report information on all of the nonfiduciary activities of the Primary Government and its component units. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. All internal balances in the statement of net position have been eliminated. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenue includes: charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or activity and grants and contributions. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate fund based financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. The major governmental funds are the General Fund, Ambulance Fund, Pension Fund, Capital Projects Fund and the Debt Service Fund. GASB No. 34 sets forth minimum criteria (percentage of assets, liabilities, revenues or expenditures of either fund category for the governmental and enterprise combined) for the determination of major funds. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned or, for property tax revenues, in the period for which levied. Expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental funds financial statements are reported using the current financial resources measurement focus and the modified-accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The District in general considers revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due. -18-

21 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION - continued For the governmental funds financial statements, the District considers all revenues susceptible to accrual and recognizes revenue if the accrual criteria are met. Specifically, interest, charges for services, and other miscellaneous revenue are considered to be susceptible to accrual and have been recognized as revenue in the current fiscal period. The accounts of the District are organized on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with fmance related legal and contractual provisions. The District reports the following major governmental funds: The General Fund - The District's primary operating fund, which accounts for all the financial resources and the legally authorized activities of the District except those required to be accounted for in other specialized funds. Ambulance Fund - This fund is a special revenue fund used to account for the proceeds of a special tax levy restricted for ambulance operations. Debt Service Fund - This fund is a special revenue fund used to account for the proceeds of a tax levy which will be used to retire the District's fire protection bonds. Pension Fund - This fund is a special revenue fund, which accounts for property tax revenue collected to make contributions to the District's employee retirement plan. Capital Projects Fund - This fund is used to account for the proceeds of the District's fire protection bond issue and the various capital expenditures made with the proceeds. The Dispatch Fund is considered nonmajor. The Dispatch Fund is a special revenue fund used to account for the proceeds of a special tax levy restricted for the purpose of dispatching services. This is accomplished by means of a contractual agreement with North Central County Fire Alarm System to provide dispatching services. Additionally, the District reports the following fund types: Fiduciary Fund - The District uses this fund to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations and other governments. The Employee Benefit Trust Fund accounts for the assets of the District's medical expense reimbursement plan held in a Voluntary Employees' Beneficiary Association Trust. -19-

22 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued D. CAPITAL ASSETS Capital assets, which include land, buildings and improvements, and equipment, are reported in the government-wide financial statements. Capital assets are defined by the District as assets with an initial individual cost of 5,000 or more and an estimated useful life in excess of one year. Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives is not capitalized. Capital assets of the District are depreciated using a straight-line method over the following estimated useful lives: Major Group Buildings and improvements Furniture and equipment Vehicles Life years 3-10 years 5-15 years E. ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires the District to make estimates and assumptions that affect the reported amounts of assets and liabilities at fiscal year-end and revenues and expenditures during the reporting period. Actual results could vary from the estimates that management uses. F. INTERFUND TRANSACTIONS Transactions that constitute reimbursements to a fund for expenditures initially made from it that are applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. All other interfund transactions are reported as transfers. G. EXPENSE ALLOCATIONS BETWEEN FUNDS The salaries and fringe benefits of employees who perform as both firefighters and emergency medical personnel are allocated between the General and Ambulance Funds. The average salary for nine firefighter/paramedics, plus the salary for the medical officer and three emergency medical service supervisors, is allocated to the ambulance fund. The percentage that the ambulance salaries bear to total salaries is used to allocate employee benefit expenses. -20-

23 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued H. COMPENSATED ABSENCES The District's sick leave policy provides sick days to be accumulated at a rate of twelve days per year for battalion employees and twenty-four days per year for support staff. The maximum accumulation of sick days is 68 days for battalion employees and 140 days for support staff. Sick days are not paid to employees upon termination; however beginning on January 1, 2010, an employee reaching retirement age will receive a contribution to the employee's VEBA account in an amount equal to their unused sick leave. The liability for this benefit has been recorded as a noncurrent liability in the statement of net assets as this benefit is not expected to be paid from current assets. The District grants vacation to employees at a rate based on years of employment. Employees with one year of service or more are entitled to paid vacation based on their length of service to the District. Vacation time must be taken in the year in which it was earned. I. NET POSITION AND FUND EQUITY In government-wide financial statements net position is reported in three categories: net assets invested in capital assets, net of related debt; restricted net position; and unrestricted net position. Net assets invested in capital assets, net of related debt represents capital assets less accumulated depreciation less outstanding principal on related debt. Net assets invested in capital assets, net of related debt does not include the unspent proceeds of capital debt. Restricted net position represents net assets restricted by parties outside of the District (such as creditors, grantors, contributors, laws and regulations of other governments). All other net position is considered unrestricted. When both restricted and unrestricted sources are available for use, it is the District's policy to use restricted first, then unrestricted resources as they are needed. The government-wide statement of net assets reports 6,067,327 ofrestricted assets, which is restricted by enabling legislation. Fund Balance Classification - The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the District is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows: Nonspendable - Resources which cannot be spent because they are either a) not in spendable form or; b) legally or contractually required to be maintained intact. Restricted - Resources with constraints placed on the use ofresources are either a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; orb) imposed by law through constitutional provisions or enabling legislation. Committed - Resources which are subject to limitations the government imposes upon itself at its highest level of decision making, and that remain binding unless removed in the same manner. Assigned - Resources neither restricted nor committed for which a government has a stated intended use as established by the Board of Directors or an official to which the Board of Directors has delegated the authority to assign amounts for specific purposes. -21-

24 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued I. NET POSITION AND FUND EQUITY - continued Unassigned - Resources which cannot be properly classified in one of the other four categories. The General fund is the only fund that reports a positive unassigned fund balance amount. Unassigned balances also include negative balances in the governmental funds reporting resources restricted for specific programs. The District would typically use restricted fund balances first, followed by committed resources and Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first. J. CONCENTRATION OF LABOR Approximately 95% of the labor force was subject to a collective bargaining agreement, which expires December 31, BUDGETS AND BUDGETARY ACCOUNTING Prior to January 1, the budget is legally enacted. Projected expenditures cannot exceed estimated revenues plus any unencumbered balance estimated for the beginning of the budget year. The budget is prepared on a cash basis of accounting. 3. CASH AND TEMPORARY INVESTMENTS The District's bank deposits are required by state law to be secured by the deposit of certain securities with the District or trustee institution. The value of the securities must amount to the total of the District's cash not insured by the Federal Deposit Insurance Corporation. As of December 31, 2012, the carrying amount of the District's bank deposits totaled 7,573,407 with bank balances of 7,648,350. The bank balances were covered by federal depository insurance, collateralized by securities held by the pledging financial institution in the District's name or secured by a letter of credit. State statutes authorize Missouri local governments to invest in obligations of the U.S. Treasury, U.S. agencies and various state and local governments. Employee Benefit Trust Fund investments may invest in obligations of the U.S. Treasury, U.S. agencies, common and preferred stock and other securities approved by applicable sections of the Missouri Revised Statutes and Missouri Constitution. Investments held by the employee benefit trust fund are recorded at fair value. As of December 31, 2012, the District has the following investments: Investment Type Fair Value Employee Benefit Trust Funds: Equity security funds 135,541 -~~~~~ -22-

25 4. PROPERTY TAX The District's property tax is levied each year on the assessed value listed as of the prior January 1 for all real and personal property located in the District. Taxes are levied in November and payable by December 31. The County collects the property tax and remits it to the District. Assessed values are established by the St. Louis County Assessor subject to review by the Board of Equalization. The following assessed values include Hazelwood but exclude the value of real estate in TIF Districts: Assessed Valuation and Tax Rate Real estate 268,804,235 Personal property 95,060,584 Total Assessed Valuation 363,864,819 Tax Rate (per 100 of Assessed Valuation) Fund Residential Agricultural Commercial Personal Pro~erty General Fund Ambulance Fund Dispatching Fund Debt Service Fund Pension Fund CAPITAL ASSETS Capital asset activity for the primary government for the year ended December 31, 2012 is as follows: BALANCE, 1RANSFERS TRANSFERS BEGINNING AND AND BALANCE, OF YEAR ADDITIONS DELETIONS END OF YEAR Governmental activities: Capital assets, not being depreciated: Land 479, ,629 Construction in progress 170, ,259 Total capital assets, not being depreciated 479, , ,888 Capital assets, being depreciated: Buildings and improvements 4,845,322 4,845,322 Furniture and equipment 831, ,764 Vehicles 3,122,531 3,122,531 Total capital assets, being depreciated 9,001,189 8,799,617 Less accmnulated depreciation for: Buildings and improvements (1,241,500) (133,805) (1,375,305) Furniture and equipment ( 590,729) (108,964) ( 699,693) Vehicles ( 917,680) (267,191) ( 1,184,871) Total accmnulated depreciation (2,749,909) (509,960) (3,259,869) Total capital assets, being depreciated, net 6,049,708 (509,960) 5,539,748 Total governmental activities 6,529,337 (339,701) 6,189,636 All depreciation expense was charged to public safety on the government-wide financial statements. -23-

26 6. LONG-TERM DEBT General Obligation Fire Protection Bonds - The District has been authorized to issue up to 10,000,000 in bonds. During September of2008, the District issued bonds totaling 4,000,000 to fund the renovation of a firehouse and purchase various firefighting and ambulance vehicles and equipment. As of December 31, 2012, the outstanding principal balance of the bonds consists of the following: Fire Protection Bonds Series 2008 The Bank of New York Mellon Interest rate % to 5.5% Matures - September 15, 2028 Annual payments range from 200,000 to 525,000 3,025,000 General Obligation Fire Protection Refunding Bonds - During 2010 the District refunded a portion of its outstanding Fire Protection Bonds Series As of December 31, 2012, the outstanding principal balance of the bonds consists of the following: General Obligation Fire Protection Refunding Bonds Series 2010 The Bank of New York Mellon Interest rate % to 3.50% Matures - February 15, 2015 Annual payments range from 328,000 to 340, ,000 General Obligation Fire Protection Bonds - During January 2011, the District issued bonds totaling 1,000,000 to fund the renovation of a certain firehouse. The bonds are valid and legally binding obligation of the District. As of December 31, 2012, the outstanding principal balance of the bonds consists of the following: General Obligation Fire Protection Series 2011 The Bank of New York Mellon Interest rate - 2.0% to 6.0% Matures - September 15, 2030 Annual payments range from 28,750 to 114, ,