Post Audit Report to the Board of Directors. City of Texarkana, Arkansas December 31, 2011 Comprehensive Annual Financial Report

Transcription

1 Post Audit Report to the Board of Directors City of Texarkana, Arkansas December 31, 2011 Comprehensive Annual Financial Report

2 Introductory Section Letter of Transmittal Certificate of Achievement Organizational Chart List of Elected and Appointed Officials 2

3 Award For Excellence in Financial Reporting Awarded by the Government Finance Officers Association City received award for 2010 CAFR * Expect to receive award for 2011 CAFR * * Comprehensive Annual Financial Report 3

4 Financial Section Independent Accountants Report Management s Discussion and Analysis Basic Financial Statements 4 Government wide financial statements Statement of Net Assets Statement of Activities Fund financial statements Governmental Funds Enterprise Funds Fiduciary Funds Notes to the financial statements

5 Financial Statements Audit City Governmental Funds Component Units Retired Senior Volunteer Program (RSVP) Arkansas Advertising and Promotion (A&P) Bi State Justice Center Other Auditors Responsible For Texarkana Water Utilities (enterprise funds) Texarkana Airport Authority (joint venture) 5

6 Financial Audit Results Received full cooperation from management and employees Unqualified (clean) audit opinions (pages 1 2) Governmental Activities Major Funds (General and Public Works Funds) Discretely Presented Component Units Aggregate Remaining Fund Information Opinions indicate that financial statements are fairly presented in all material respects in accordance with generally accepted accounting principles 6

7 Financial Highlights Assets exceeded liabilities (net assets)by $66,270,593 Unrestricted net assets of $19,254,814 available to meet City s ongoing obligations to citizens and creditors Total net assets increased by $1,023,586 City s governmental funds reported combined ending fund balances of $8,751,869 7 Unassigned governmental funds balance of $2,987,374

8 Statement of Net Assets (Page 10) Governmental Activities Business-Type Activities Total Current and other assets $27,669,059 $10,373,413 $38,042,472 Capital assets 26,173,599 43,231,332 69,404,931 Other assets 318,120 5,109,037 5,427,157 Total assets 54,160,778 58,713, ,874,560 Long-term liabilities 26,446,624 14,845,068 41,291,692 Other liabilities 2,698,567 2,613,708 5,312,275 Total liabilities 29,145,191 17,458,776 46,603,967 Invested in capital assets 13,405,075 27,882,314 41,287,389 Restricted 2,406,273 3,322,117 5,728,390 Unrestricted 9,204,239 10,050,575 19,254,814 Total net assets $25,015,587 $41,255,006 $66,270,593 8

9 Statement of Activities (Page 11) 9 Governmental Activities Business-Type Activities Programs (Expense) Revenue Expenses $ (26,671,117) $ (8,828,758) Charges for Services 5,444,642 10,264,791 Operating Grants and Contributions 4,722,269 - Capital Grants and Contributions 1,028,843 78,337 Net Program (Expenses) Revenues (15,475,363) 1,514,370 General Revenues Property Taxes 3,102,615 - Sales Taxes 8,751,952 - Franchise Taxes 2,688,227 - Other Taxes 76,338 - Unrestricted investment Earnings 14, ,080 Gain (Loss) on Sale of Capital Assets 47,145 (7,050) Miscellaneous 248,202 - Transfers - (255,035) Total General Revues and Transfers 14,928,584 55,995 Change in Net Assets $ (546,779) $ 1,570,365

10 Balance Sheet Governmental Funds (Page 12) General Public Works Other Governmental Funds Total Governmental Funds Total assets $7,509,871 $938,358 $6,308,961 $14,757,190 Total liabilities 3,869, ,821 1,621,289 6,005,321 Total fund balances $3,640,660 $423,537 $4,687,672 $8,751,869 10

11 Number of Days Expenditures in General Fund Unassigned Fund Balance Total expenditures $16,771,685 $17,519,107 Days per year Average expenditures per day $45,950 $47,998 Unassigned fund balance $2,991,764 $2,000,819 Average expenditures per day $45,950 $47,998 Number of days expenditures in unassigned general fund balance

12 Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund (Page 14) Final Budget Actual Variance with Final Budget Total revenues $16,803,222 $16,991,798 $188,576 Total expenditures 16,591,935 16,771,685 (179,750) Excess of revenue over 211, ,113 8,826 expenditures Total other financing sources (uses) (355,965) (615,913) (259,948) Net change in fund balance (144,678) (395,800) (251,122) Fund balance at beginning of year 4,036,460 4,036,460 - Fund balance at end of year 3,891,782 3,640,660 (251,122) 12

13 Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Public Works (Page 15) Final Budget Actual Variance with Final Budget Total revenues $5,697,625 $5,776,190 $78,565 Total expenditures 5,637,749 5,486, ,288 Excess of revenue over expenditures 59, , ,853 Total other financing sources (uses) (212,672) (242,602) (29,930) Net change in fund balance (152,796) 47, ,923 Fund balance at beginning of year 376, ,410 - Fund balance at end of year 223, , ,923 13

14 Statement of Net Assets Enterprise Funds (Page 16) Texarkana, Arkansas Water Utilities Other Proprietary Funds **As of 9/30/2011 Total Current assets $5,046,142 $355,218 $5,401,360 Restricted assets 3,196, ,231 3,567,439 Noncurrent assets 6,427, ,241 6,536,601 Capital assets 40,176,294 3,055,038 43,231,332 Total assets 54,846,004 3,890,728 58,736,732 Current liabilities 1,616, ,683 1,908,210 Noncurrent liabilities 12,562,478 3,011,038 15,573,516 Total liabilities 14,179,005 3,302,721 17,481,726 Total net assets 40,666, ,007 41,255,006 14

15 Statement of Revenues, Expenses, & Changes in Net Assets Enterprise Funds (Page 17) Texarkana, Arkansas Water Utilities Other Enterprise Funds **As of 9/30/2011 Total Total operating revenues $9,680,064 $584,727 $10,264,791 Total operating expenses 7,758, ,963 8,135,302 Operating income 1,921, ,764 2,129,489 Nonoperating revenue (277,713) (104,713) (382,426) (expenses) Capital contributions 78,337-78,337 Transfers in (out) (255,035) - (255,035) Change in net assets 1,467, ,051 1,570,365 Net assets, beginning of year 39,199, ,956 39,684,641 Net assets, end of year 40,666, ,007 41,255,006 15

16 Statement of Net Assets & Changes in Net Assets Fiduciary Funds (Pages 19 20) Pension Trust Funds Agency Funds Total assets $18,479,439 $235,433 Total liabilities 23, ,433 Net assets 18,456,320 - Total additions 1,305,809 - Total deductions 2,325,619 - Change in net assets (1,019,810) - Net assets, beginning of year 19,476,130 - Net assets, end of year 18,456,320-16

17 Notes to Financial Statements Read in conjunction with financial statements Pages Discloses necessary information about the City s financial activities 17 Summary of Significant Accounting Policies Detailed Notes Deposits and Investments Capital Assets Long term Debt Pensions and Other Post Employment Benefits Plans Contingencies Subsequent Events

18 Required Supplementary Information Pages Defined Benefit Pension Plans Schedules of Employer Contributions Schedules of Funding Progress Other Postemployment Benefit Plans Schedules of Funding Progress 18

19 Supplementary Information Pages Combining Statements Nonmajor Governmental Funds Fiduciary Funds Budgetary Comparison Schedules for Nonmajor Governmental Special Revenue Funds 19

20 Statistical Section Pages Financial Trends Revenue Capacity Debt Capacity Demographic and Economic Information Operating Information 20

21 Other Required Report Page115 Compliance With Arkansas State Requirements Unqualified opinion on City s compliance with specific state requirements 21

22 Single Audit Section (pages ) Opinions Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards No material weaknesses or significant deficiencies noted Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A 133 Unqualified opinion on each major program No instances of noncompliance reported No material weaknesses or significant deficiencies noted 22

23 Single Audit Section Schedule of Expenditures of Federal Awards The City expended approximately $1.4 million in federal awards. BKD performed program audit on major programs COPS Hiring Recovery Program Grant Disaster Economic Adjustment, Industrial Access and Related Infrastructure Improvements Grant Edward Byrne Memorial Justice Assistance Grants 23

24 Required Communication to the Board of Directors Auditor s Responsibility Qualitative Aspects of Significant Accounting Policies & Practices Audit Adjustments (Recorded and Passed) Auditor s Judgments About the Quality of the Entity s Accounting Principles Difficulties Encountered in Performing the Audit Other Matters AICPA Clarity Standards Recently Issued GASB Statements on Pensions 24

25 Questions?