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HomeMy WebLinkAboutBond Bank Financial Statement Audit 2019 Government Auditing Standards Independent Auditors' Report Management’s Responsibility for the Financial Statements Auditors’ Responsibility Government Auditing Standards Uniform ComplianceGuidelines for Audit of Hospitals and State and Local Governments by Authorized Independent Public Accountants, Opinion Government Auditing Standards Government Auditing Standards Government Auditing Standards statements of net position statements of revenues, expenses and changes in net position statements of cash flows notes to the financial statements Long-term Debt: THE CITY OF CARMEL LOCAL PUBLIC IMPROVEMENT BOND BANK STATEMENTS OF NET POSITION December 31, 2019 and 2018 20192018 ASSETS Current Assets: Cash $ 75,188 $ 94,560 Interest receivable 5,313,631 5,425,346 Investments held by trustees, at fair value 2,342,861 3,531,107 Loans receivable, current 9,864,555 7,337,900 Total Current Assets 17,596,235 16,388,913 Noncurrent Assets: Loans receivable, net 393,056,266 408,220,898 Total Noncurrent Assets 393,056,266 408,220,898 Total Assets 410,652,501 424,609,811 LIABILITIES Current Liabilities: Interest payable 6,390,869 6,527,616 Funds held for qualified entities 125,661 1,461,812 Bonds payable - current 10,455,000 7,910,000 Total Current Liabilities 16,971,530 15,899,428 Noncurrent Liabilities: Bonds payable, net 393,175,120 408,323,459 Total Noncurrent Liabilities 393,175,120 408,323,459 Total Liabilities 410,146,650 424,222,887 NET POSITION $ 505,851 $ 386,924 See accompanying notes. 8 THE CITY OF CARMEL LOCAL PUBLIC IMPROVEMENT BOND BANK STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Years Ended December 31, 2019 and 2018 20192018 OPERATING REVENUES Interest $ 20,849,397 $ 21,214,376 Total Operating Revenues 20,849,397 21,214,376 OPERATING EXPENSES Interest 20,695,460 21,140,810 Administrative costs 35,010 15,690 Total Operating Expenses 20,730,470 21,156,500 INCREASE IN NET POSITION 118,927 57,876 NET POSITION Beginning of Year 386,924 329,048 End of Year $ 505,851 $ 386,924 See accompanying notes. 9 THE CITY OF CARMEL LOCAL PUBLIC IMPROVEMENT BOND BANK STATEMENTS OF CASH FLOWS Years Ended December 31, 2019 and 2018 20192018 OPERATING ACTIVITIES Cash received from interest and administrative fees $ 16,267,773 $ 15,076,143 Cash payments for interest, administrative and other expenses (16,222,585) (15,330,956) Net Cash Provided (Used) by Operating Activities 45,188 (254,813) INVESTING ACTIVITIES Maturities of loans to qualified entities 7,993,345 5,211,540 Maturities of investments 958,000 958,000 Net Cash Provided by Investing Activities 8,951,345 6,169,540 NON-CAPITAL FINANCING ACTIVITIES Principal payments to reduce indebtedness (7,910,000) (4,925,000) Payments related to funds held for qualified entities (1,336,151) (2,449,276) Net Cash Used by Non-Capital Financing Activities (9,246,151) (7,374,276) NET DECREASE IN CASH AND SHORT-TERM INVESTMENTS (249,618) (1,459,549) CASH AND SHORT-TERM INVESTMENTS Beginning of Year 2,667,667 4,127,216 End of Year $ 2,418,049 $ 2,667,667 CASH AND SHORT-TERM INVESTMENTS Cash $ 75,188 $ 94,560 Short-term investments 2,342,861 2,573,107 $ 2,418,049 $ 2,667,667 RECONCILIATION OF INCREASE IN NET POSITION TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Increase in net position $ 118,927 $ 57,876 Adjustments to reconcile increase in net position to net cash provided (used) by operating activities: Loan premium amortization 4,644,632 4,771,592 Bond premium amortization (4,693,339) (4,821,276) Changes in certain assets and liabilities: Interest receivable 111,715 (1,316,958) Interest payable (136,747) 1,053,953 Net Cash Provided (Used) by Operating Activities $ 45,188 $ (254,813) See accompanying notes. 10 Nature of Operations: Basis of Presentation: Estimates: Cash and Equivalents Investments: Loans Receivable: Original Issue Premiums and Discounts: Bond Issuance Costs: Income Taxes: Subsequent Events: Level 1 Level 2 Level 3 Money Market Fund Shares: Certificates of Deposit: Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Government Auditing Standards, Uniform ComplianceGuidelines for Audit of Hospitals and State and Local Governments by Authorized Independent Public Accountants, deficiency in internal control material weakness significant deficiency Government Auditing Standards Government Auditing Standards