INTERNAL SERVICE FUNDS are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a governmental unit, or to other governmental units, on a cost-reimbursement basis. Central Equipment Service Fund To provide for the maintenance, repair and purchase of vehicles and electronics for City and Borough services. Revenues are from rental charges from user departments within the City and Borough. Expenses include labor, materials, supplies and services. Replacement of equipment is part of the rental rate of the equipment. Self-insurance Fund To provide for the cost of administering the City and Borough s Risk Management Program. This program provides coverage for the various risks of loss from legal liabilities, property damage and workers compensation claims. The program also provides coverage for medical, dental and vision claims and term life coverage. Charges for services are based on estimates of the amounts needed to pay prior and current year claims in addition to the cost of the excess and special insurance policy premiums. - 157 -
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CITY and BOROUGH OF JUNEAU Combining Statement of Net Assets June 30, 2004 with comparative total amounts for 2003 and 2002 Central Equipment Self- Totals Service insurance 2004 2003 2002 ASSETS Current assets: Equity in central treasury $ 2,295,910 3,088,875 5,384,785 4,757,730 5,803,539 Receivables - other 169,626 20,820 190,446 183,202 108,084 Inventories 273,952-273,952 273,650 260,527 Prepaid items - insurance - 1,984 1,984 2,407 134,367 Total current assets 2,739,488 3,111,679 5,851,167 5,216,989 6,306,517 Capital assets: Buildings and improvements 17,828-17,828 17,828 17,828 Machinery, equipment and fixtures 12,822,840 19,105 12,841,945 12,108,555 11,759,086 Less accumulated depreciation (7,664,381) (18,166) (7,682,547) (7,032,891) (6,761,172) Net property, plant and equipment 5,176,287 939 5,177,226 5,093,492 5,015,742 Total assets 7,915,775 3,112,618 11,028,393 10,310,481 11,322,259 LIABILITIES Current liabilities: Accounts payable 33,072 162,396 195,468 253,480 821,070 Contracts payable - current 64,459-64,459 137,713 131,669 Accrued salaries, payroll taxes and withholdings payable 14,685 11,889 26,574 21,987 24,041 Accrued annual leave and compensation time 10,248 8,792 19,040 30,504 27,947 Accrued and other liabilities 906 3,048,679 3,049,585 2,567,678 2,447,983 Total current liabilities 123,370 3,231,756 3,355,126 3,011,362 3,452,710 Long-term liabilities: Accrued annual leave and compensation time 31,761 27,249 59,010 41,611 38,075 Long-term contracts payable 16,780-16,780 81,030 218,330 Total long-term liabilities 48,541 27,249 75,790 122,641 256,405 Total liabilities 171,911 3,259,005 3,430,916 3,134,003 3,709,115 NET ASSETS Invested in capital assets, net of related debt 5,094,142 939 5,095,081 4,872,396 4,662,008 Unrestricted 2,649,722 (147,326) 2,502,396 2,304,082 2,951,136 Total net assets $ 7,743,864 (146,387) 7,597,477 7,176,478 7,613,144-159 -
CITY and BOROUGH OF JUNEAU Combining Statement of Revenues, Expenses, and Changes in Net Assets For the fiscal year ended June 30, 2004 with comparative total amounts for 2003 and 2002 Central Equipment Self- Totals Services insurance 2004 2003 2002 OPERATING REVENUES - Charges for services $ 2,012,588 12,931,024 14,943,612 12,830,025 9,355,208 OPERATING EXPENSES Salaries and fringe benefits 335,210 279,110 614,320 576,474 523,650 Contracted services 6,146 286,147 292,293 460,789 225,146 Materials and utilities 236,830-236,830 209,211 205,511 Insurance premiums - 10,122,153 10,122,153 9,440,276 7,820,943 Claims - 2,024,911 2,024,911 1,161,384 1,193,525 Other: Gasoline and oil 351,158-351,158 347,122 293,409 Miscellaneous 103,722 71,782 175,504 191,016 166,397 1,033,066 12,784,103 13,817,169 12,386,272 10,428,581 Depreciation 889,437 209 889,646 857,472 724,262 Total operating expenses 1,922,503 12,784,312 14,706,815 13,243,744 11,152,843 Operating income (loss) 90,085 146,712 236,797 (413,719) (1,797,635) NONOPERATING INCOME (EXPENSES) State equipment grant 159,135-159,135-82,851 Investment and interest income 19,866-19,866 138,655 166,263 Interest expense (5,649) - (5,649) (11,952) (17,040) Gain on disposal of assets 10,850-10,850 41,350 19,000 Net nonoperating income (expenses) 184,202-184,202 168,053 251,074 Income (loss) before transfer 274,287 146,712 420,999 (245,666) (1,546,561) Transfer out - - - (191,000) - Change in net assets 274,287 146,712 420,999 (436,666) (1,546,561) Total net assets - beginning 7,469,577 (293,099) 7,176,478 7,613,144 9,159,705 Total net assets - ending $ 7,743,864 (146,387) 7,597,477 7,176,478 7,613,144-160 -
CITY AND BOROUGH OF JUNEAU Combining Statement of Cash Flows For the fiscal year ended June 30, 2004 with comparative total amounts for 2003 and 2002 Increase (decrease) in cash and cash equivalents: Central Equipment Self- Totals Service insurance 2004 2003 2002 Cash flows from operating activities: Cash received from users $ 1,842,962 13,093,406 14,936,368 12,754,907 9,247,124 Cash payments to suppliers for goods and services (698,211) (12,080,622) (12,778,833) (12,138,856) (8,853,091) Cash payments to employees for services (329,928) (273,870) (603,798) (572,435) (519,954) Net cash provided (used) by operating activities 814,823 738,914 1,553,737 43,616 (125,921) Cash flows from investing activities - Earnings from invested proceeds 19,866-19,866 138,655 166,263 Cash flows from noncapital financing activities - Transfers to other funds - - - (191,000) 166,263 Cash flows from capital and related financing activities: Cash received from disposal of capital assets 12,736-12,736 77,567 19,000 Cash received from state capital grant 159,135-159,135-82,851 Cash paid for the acquisition of capital assets (975,267) - (975,267) (971,439) (1,464,406) Principal paid on long-term contracts (137,504) - (137,504) (131,256) (128,013) Interest paid on long-term contracts (5,648) - (5,648) (11,952) (16,578) Net cash used by capital and related financing activities (946,548) - (946,548) (1,037,080) (1,507,146) Net increase (decrease) in cash and cash equivalents (111,859) 738,914 627,055 (1,045,809) (1,466,804) Cash and cash equivalents at beginning of year 2,407,769 2,349,961 4,757,730 5,803,539 7,270,343 Cash and cash equivalents at end of year $ 2,295,910 3,088,875 5,384,785 4,757,730 5,803,539 Reconciliation of operating income to net cash provided (used) by operating activities: Operating income (loss) $ 90,085 146,712 236,797 (413,719) (1,797,635) Adjustments to reconcile net operating income (loss) to net cash provided by operating activities: Depreciation 889,437 209 889,646 857,472 724,262 Change in assets and liabilities: (Increase) decrease in receivable - other (169,626) 162,382 (7,244) (75,118) (108,084) (Increase) decrease in inventories (302) - (302) (13,123) (7,526) (Increase) decrease in prepaid expenses 2,407 (1,984) 423 131,960 (17,963) Increase (decrease) in accounts payable (1,013) (56,999) (58,012) (567,590) 622,683 Increase (decrease) in accrued salaries payable 2,588 1,999 4,587 (2,054) 4,372 Increase (decrease) in accrued annual leave and compensation payable 2,694 3,241 5,935 6,093 (676) Increase (decrease) in accrued and other liabilities (1,447) 483,354 481,907 119,695 454,646 Total adjustments 724,738 592,202 1,316,940 457,335 1,671,714 Net cash provided (used) by operating activities $ 814,823 738,914 1,553,737 43,616 (125,921) - 161 -
CITY AND BOROUGH OF JUNEAU CENTRAL EQUIPMENT SERVICES Comparative Statements of Revenues, Expenses, and Changes in Net Assets For the fiscal years ended June 30, 2004, 2003 and 2002 2004 2003 2002 OPERATING REVENUES - Charges for services $ 2,012,588 1,851,653 1,844,880 OPERATING EXPENSES Salaries and fringe benefits 335,210 309,510 280,627 Contracted services 6,146 7,490 6,668 Materials and utilities 236,830 209,211 205,511 Other: Gasoline and oil 351,158 347,122 293,409 Miscellaneous 103,722 118,442 103,585 1,033,066 991,775 889,800 Depreciation 889,437 857,263 723,607 Total operating expenses 1,922,503 1,849,038 1,613,407 Operating income 90,085 2,615 231,473 NONOPERATING INCOME (EXPENSES) State equipment grant 159,135-82,851 Investment and interest income 19,866 138,655 166,263 Interest expense (5,649) (11,952) (17,040) Gain on disposal of capital assets 10,850 41,350 19,000 Net nonoperating income 184,202 168,053 251,074 Income before transfer 274,287 170,668 482,547 Transfer out - (191,000) - Change in net assets 274,287 (20,332) 482,547 Total net assets - beginning 7,469,577 7,489,909 7,007,362 Total net assets - ending $ 7,743,864 7,469,577 7,489,909-162 -
CITY AND BOROUGH OF JUNEAU CENTRAL EQUIPMENT SERVICES Schedule of Revenues, Expenses, and Changes in Net Assets Budget and Actual For the fiscal year ended June 30, 2004 Variance with Final Budget - Budgeted Amounts positive Original Final Actual (negative) OPERATING REVENUES - Charges for services $ 1,995,700 1,984,700 2,012,588 27,888 OPERATING EXPENSES Salaries and fringe benefits 321,200 321,200 335,210 (14,010) Contracted services 9,700 10,878 6,171 4,707 Materials and utilities 188,200 191,024 240,291 (49,267) Other: Gasoline and oil 318,300 318,300 439,082 (120,782) Miscellaneous 118,800 128,800 104,138 24,662 Capital outlay 1,726,400 2,289,824 1,319,738 970,086 Debt principal - - 137,504 (137,504) Total operating expenses 2,682,600 3,260,026 2,582,134 677,892 Operating loss (686,900) (1,275,326) (569,546) 705,780 NONOPERATING INCOME (EXPENSES) State equipment grant - 191,000 159,135 (31,865) Investment and interest income 110,900 110,900 19,866 (91,034) Interest expense-capital leases - - (5,649) (5,649) Gain on disposal of capital assets 25,000 25,000 12,736 (12,264) Net nonoperating income 135,900 326,900 186,088 (140,812) Change in net assets (Non-GAAP) $ (551,000) (948,426) (383,458) 564,968 Encumbrance adjustment 436,297 Capitalization of assets 975,267 Net book value of assets disposed (1,886) Depreciation expense (889,437) Principal paid on debt 137,504 Equity Transfer Out - Change in net assets $ 274,287-163 -
CITY AND BOROUGH OF JUNEAU SELF-INSURANCE Comparative Statements of Revenues, Expenses, and Changes in Net Assets For the fiscal years ended June 30, 2004, 2003 and 2002 2004 2003 2002 OPERATING REVENUES - Charges for services $ 12,931,024 10,978,372 7,510,328 OPERATING EXPENSES Salaries and fringe benefits 279,110 266,964 243,023 Contracted services 286,147 453,299 218,478 Insurance premiums 10,122,153 9,440,276 7,820,943 Claims 2,024,911 1,161,384 1,193,525 Other 71,782 72,574 62,812 12,784,103 11,394,497 9,538,781 Depreciation 209 209 655 Total operating expenses 12,784,312 11,394,706 9,539,436 Change in net assets 146,712 (416,334) (2,029,108) Total net assets - beginning (293,099) 123,235 2,152,343 Total net assets - ending $ (146,387) (293,099) 123,235-164 -
CITY AND BOROUGH OF JUNEAU SELF-INSURANCE Schedule of Revenues, Expenses, and Changes in Net Assets Budget and Actual For the fiscal year ended June 30, 2004 Variance with Final Budget - Budgeted Amounts positive Original Final Actual (negative) OPERATING REVENUES - Charges for services $ 11,881,200 11,881,200 12,931,024 1,049,824 OPERATING EXPENSES Salaries and fringe benefits 314,600 316,119 279,110 37,009 Contracted services 253,200 263,200 336,147 (72,947) Insurance premiums 9,783,600 9,783,600 10,122,153 (338,553) Claims 627,700 627,700 2,024,911 (1,397,211) Other 83,100 83,100 71,782 11,318 Total operating expenses 11,062,200 11,073,719 12,834,103 (1,760,384) Change in net assets (Non-GAAP) $ 819,000 807,481 96,921 (710,560) Encumbrance adjustment 50,000 Depreciation expense (209) Change in net assets $ 146,712-165 -
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