Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2011 Audit Report and Federal Schedule
B41034 STATE BOARD OF ACCOUNTS 302 West Washington Street Room E418 INDIANAPOLIS, INDIANA 46204 -2769 FINANCIAL STATEMENT AND FEDERAL SINGLE AUDIT REPORT OF CITY OF CARMEL HAMILTON COUNTY, INDIANA January 1, 2011 to December 31, 2011 FILED 09/27/2012 TABLE OF CONTENTS Description Page Schedule of Officials 2 Independent Auditor's Report 3 -4 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statement Performed in Accordance With Government Auditing Standards 5 -6 Financial Statement: Statement of Receipts, Disbursements, and Cash and Investment Balances — Regulatory Basis 8 Notes to Financial Statement 9 -14 Supplementary Information: Combining Schedule of Receipts, Disbursements, and Cash and Investment Balances — Regulatory Basis 16 -25 Schedule of Payables and Receivables 26 Schedule of Leases and Debt 27 Schedule of Capital Assets • 28 Other Reports 29 Audit Result and Comment: Bank Account Reconciliations - Payroll 30 Supplemental Audit of Federal Awards: Independent Auditor's Report on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Program and Internal Control Over Compliance in Accordance With OMB Circular A -133 32 -33 Schedule of Expenditures of Federal Awards 36 Note to Schedule of Expenditures of Federal Awards 37 Schedule of Findings and Questioned Costs 38 Auditee Prepared Schedule: Summary Schedule of Prior Audit Findings 39 Exit Conference 40 SCHEDULE OF OFFICIALS Office Official Term Clerk- Treasurer Diana Cordray 01 -01 -08 to 12 -31 -15 Mayor James Brainard 01 -01 -08 to 12 -31 -15 President of the Board of Public Works James Brainard 01 -01 -08 to 12 -31 -15 President of the City Council Eric Seidensticker 01 -01 -11 to 12 -31 -11 Richard Sharp 01 -01 -12 to 12 -31 -12 Superintendent of Water Utility Paul Pace 01 -01 -11 to 12 -31 -12 Superintendent of Wastewater Utility Edward Wolf 01 -01 -11 to 12 -31 -12 Utility Director John Duffy 01 -01 -11 to 12 -31 -12 -2- 4 °k) STATE OF INDIANA AN EQUA I. OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS ✓ e 302 WEST WASHINGTON STREET ROOM E41g INDIANAPOLIS, INDIANA 46204 -2769 Telephone: (317) 232 -2513 Fax: (317) 232 -4711 Web Site: www.in.gov /stxm INDEPENDENT AUDITOR'S REPORT TO: THE OFFICIALS OF THE CITY OF CARMEL, HAMILTON COUNTY, INDIANA We have audited the accompanying financial statement of the City of Carmel (City), for the year ended December 31, 2011. The financial statement is the responsibility of the City's management. Our responsibility is to express an opinion on the financial statement 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 statement is free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant esti- mates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in Note 1, the City prepares its financial statement on the prescribed basis of ac- counting that demonstrates compliance with the reporting requirements established by the State Board of Accounts as allowed by state statute (IC 5- 11 -1 -6), which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. In our opinion, the financial statement referred to above presents fairly, in all material respects, the financial position and results of operations of the City for the year ended December 31, 2011, on the basis of accounting described in Note 1. In accordance with Government Auditing Standards we have also issued a report dated July 12, 2012, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, 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. Our audit was conducted for the purpose of forming an opinion on the City's financial statement. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations and is not a required part of the financial statement. Such infor- mation has been subjected to the auditing procedures applied in the audit of the financial statement and, in our opinion, is fairly stated, in all material respects, in relation to the financial statement taken as a whole. INDEPENDENT AUDITOR'S REPORT (Continued) Included in the financial statement are the receipts and disbursements activity from emergency telephone system fees (IC 36 -8 -16) and enhanced wireless emergency telephone fees (IC 36 -8- 16.5). In accordance with Indiana Code 36- 8 -16 -14 and Indiana Code 36 -8- 16.5 -41 these fees have been subject to an annual audit performed by the State Board of Accounts and, in our opinion, are fairly stated, in all material respects, in relation to the financial statement taken as a whole. Our audit was conducted for the purpose of forming an opinion on the City's financial statement. The Combining Schedule of Receipts, Disbursements, and Cash and Investment Balances — Regulatory Basis, Schedule of Payables and Receivables, Schedule of Leases and Debt, and Schedule of Capital Assets are presented for additional analysis and are not required parts of the financial statement. They have not been subjected to the auditing procedures applied by us in the audit of the financial statement and, accordingly, we express no opinion on them. This report is intended solely for the information and use of the City's management, City Council, others within the entity, federal awarding agencies, and pass - through entities and is not intended to be and should not be used by anyone other than these specified parties. In accordance with Indiana Code 5- 11 -5 -1, this report is a part of the public records of the State Board of Accounts and of the office examined. STATE BOARD OF ACCOUNTS July 12, 2012 STATE OF INDIANA AN EQUA1. OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 INDIANAPOLIS. INDIANA 46204-2769 Telephone: (317) 232 -2513 Fax: (317) 232 -471 I Web Site: www.in.gov /shoo REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENT PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS TO: THE OFFICIALS OF THE CITY OF CARMEL, HAMILTON COUNTY, INDIANA We have audited the financial statement of the City of Carmel (City), for the year ended December 31, 2011, and have issued our report thereon dated July 12, 2012. 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statement, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statement will not be prevented or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weak- nesses, as defined above. REPORT ON IN VERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENT PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS (Continued) Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statement is free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, con- tracts, and grant agreements, noncompliance with which could have a direct and material effect on the deter- mination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the City's management, City Council, others within the entity, federal awarding agencies, and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. In accordance with Indiana Code 5- 11 -5 -1, this report is a part of the public records of the State Board of Accounts and of the office examined. July 12, 2012 -6- STATE BOARD OF ACCOUNTS CITY OF CARMEL STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CASH AND INVESTMENT BALANCES - REGULATORY BASIS For The Year Ended Cecember 31, 2011 Cush and Cash and Investments Investments Fund 1)1 -01 -11 Receipts Disbursements 12 -31-11 General 5 7,742.546 5 59,118,973 5 64033820 5 2,827,699 Motor VehiGe Highway 3,080647 6,438770 8.461,268 1,058,149 Local Road And Street 1,157,505 999,695 195,042 1,962,150 Througlilare Fund 586,920 142,578 - 729,507 Economic Fund 33252 20850 - 53,312 (lousing Authonty 58,455 81 • 58537 User Fee Fund 123836 83580 113834 97,391 Clerk's Record Perpetuaton 69,108 18,273 7,827 79,554 Demral Fund 515.429 53,923 46,434 532,918 Rainy Day 6448627 6,943 - 6457.579 Hazardous Material Response Fund 5,492 2,037 7,529 Levy lixcoss Fund 334,405 • 334.405 Cumulative Capiial Development 2,248,315 1890,479 1,877,923 2,260,871 Parts Capital 731,658 980 43,955 688643 Cumuative Capital Improvement 481,134 197,907 110,679 568,362 Police Pension Fund 3833602 510,458 462,160 3860,900 Fire Pension Funrl 4,686463 653,304 545,464 4,794,303 Judicial Salary Fees - 38,810 - 38,810 Drug Task Force 645,105 124812 152,396 618,520 Fire Gift Fund 3,486 70,988 58,113 16.361 Parks the Fund 51,468 5,269 3,149 53,588 Ambulance Fund 423,737 1,009,591 0)1,725 531,603 Grans Fund 900 ,109 386,703 739,013 547,199 Police Gilt 33,877 17,373 16,135 35,115 Onr7Tree City 49,929 304 55 53,178 Coed Interpener Fund 4,948 7 - 4,955 Community Relations aft Fund 2,451 7,542 6,752 3,241 Public Defenders Fund 1,272 527 - 1,799 Redevelopment Commission 694,511 29 671,235 23,305 Crc Regions Account 2,653,951 31416033 28,345,585 5,724 399 Carmel Cdy Coal 172,247 1816,154 1,813,287 175,114 Parks Program Fun9 440,063 3,177,064 2,882,349 734,778 Parks Monon Fund 543,381 0508,407 4,170,129 941,659 Lease Rental Fund 13,292 818,538 826,001 3,829 2004 Road Bond 22,438 824,224 831,810 14,852 Cumulative Capital Sewer 1,911,231 2,280 675,934 1,237,586 Park Impact Fee Fund 1,171625 947,136 1,023,986 1.094 775 Barrett Law Fund 6 - 6 Civic Square Construction Fund 594 1 - 595 Old Town/126Th Sheet 457 1 - 458 Keystone Ave Fund 7,042,847 0,322 753.042 6,298.527 Health Insurance Fund 3,733,245 11.251.947 11 213,780 3,771 412 Workers Comp Fund 415,447 217,059 557,296 76,210 Support For The Arts 22,833 235,013 253030 4.840 Payroll Fund 895,697 42875,454 43032,601 738,550 Barrett Law Surplus 164,863 1,292 698 155,457 Sewer Operating 7,309 6,744,060 6,637,770 113,599 Sewer Deprecinsng - 54,427 54,426 1 Sewer Connection Fund 273,027 262,420 11,407 Sewer Availability Fund 70,611 70,611 Se'werLoanSr( 699.899 41,900 741,799 - WastewalerBorldAlniterestAtBony 1,471,715 1,176,802 1,122,281 1,526,236 Water Operating 31,249 16355,158 16,349,078 37,329 Water Bond 8 Interest 1,072.280 148 148 1,072,280 Water Depreciation - 121,394 121,394 - HydrantMolorOepnsitFund 32,325 4,015 350 35,990 Wnlcr Connection - 1,531,947 1,356,996 174,951 Water Availability • 05,581 21,101 44,480 Water Sinking Fund 899.436 4,053,090 4225,170 727,356 Wells Fargo Water Cnnstr 16.474 497 88,164 16.488,860 73801 Totals $ 74,846,225 5 200,552,003 $ 222635728 $ 52.762,560 Tae notes to the financial statement are mr integral pan of Pis statemenl. CITY OF CARMEL NOTES TO FINANCIAL STATEMENT Note 1. Summary of Significant Accounting Policies A. Repotting Entity The City was established under the laws of the State of Indiana. The City operates under a Council -Mayor form of government and provides some or all of the following services: public safety (police and fire), highways and streets, health and social services, culture and recrea- tion, public improvements, planning and zoning, general administrative services, water, waste- water, electric, gas, storm water, trash, aviation, and urban redevelopment and housing. The accompanying financial statement presents the financial information for the City_ B. Basis of Accounting The financial statement is reported on a regulatory basis of accounting prescribed by the State Board of Accounts in accordance with state statute (IC 5- 11 -1 -6), which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Receipts are recorded when received and disbursements are recorded when paid. The regulatory basis of accounting differs from accounting principles generally accepted in the United States of America in that receipts are recognized when received in cash, rather than when earned, and disbursements are recognized when paid, rather than when a liability is incurred. C. Cash and Investments Investments are stated at cost. Any changes in fair value of the investments are reported as receipts in the year of the sale of the investment. D. Receipts Receipts are presented in the aggregate on the face of the financial statement. The aggregate receipts may include the following sources: Taxes which can include one or more of the following: property taxes, certified shares (local option tax), property tax replacement credit (local option tax), county option income tax, wheel tax, innkeepers tax, food and beverage tax, county economic development in- come tax, boat and trailer excise tax, county adjusted gross income tax, and other taxes that are set by the City. Licenses and permits which include amounts received from businesses, occupations, or nonbusinesses that must be licensed before doing business within the government's juris- diction or permits levied according to the benefits presumably conferred by the permit. Examples of licenses and permits include: peddler licenses, dog tax licenses, auctioneer license, building and planning permits, demolition permits, electrical permits, sign permits, and gun permits. Intergovernmental receipts which include receipts from other governments in the form of operating grants, entitlements, or payments in lieu of taxes. Examples of this type of receipts include, but are not limited to: federal grants, state grants, cigarette tax distribu- tions received from the state, motor vehicle highway distribution received from the state, local road and street distribution received from the state, financial institution tax received CITY OF CARMEL NOTES TO FINANCIAL STATEMENT (Continued) from the state, auto excise surtax received from the state, commercial vehicle excise tax received from the state, major moves distributions received from the state, and riverboat receipts received from the county. Charges for services which can include, but are not limited to the following: planning com- mission charges, building department charges, copies of public records, copy machine charges, accident report copies, gun permit applications, 911 telephone services, recycling fees, dog pound fees, emergency medical service fees, park rental fees, swimming pool receipts, cable tv receipts, ordinance violations, fines and fees, bond forfeitures, court costs, and court receipts. Fines and forfeits which include receipts derived from fines and penalties imposed for the commission of statutory offenses, violation of lawful administrative rules and regulations (fines), and for the neglect of official duty and monies derived from confiscating deposits held as performance guarantees (forfeitures). Utility fees which are comprised mostly of charges for current services. Penalties which include fees received for late payments. Other receipts which include amounts received from various sources which can include, but are not limited to the following: net proceeds from borrowings; interfund loan activity; transfers authorized by statute, ordinance, resolution or court order; internal service receipts; and fiduciary receipts. E. Disbursements Disbursements are presented in the aggregate on the face of the financial statement. The aggregate disbursements may include the following uses: Personal services include outflows for salaries, wages, and related employee benefits pro- vided for all persons employed. In those units where sick leave, vacation leave, overtime compensation, and other such benefits are appropriated separately, such payments would also be included. Supplies which include articles and commodities that are entirely consumed and materially altered when used and/or show rapid depreciation after use for a short period of time. Examples of supplies include office supplies, operating supplies, and repair and mainte- nance supplies. Other services and charges which include, but are not limited to: professional services, communication and transportation, printing and advertising, insurance, utility services, repairs and maintenance, and rental charges. Debt service principal and interest which include fixed obligations resulting from financial transactions previously entered into by the City. It includes all expenditures for the reduc- tion of the principal and interest of the City's general obligation indebtedness. Capital outlay which include all outflows for land, infrastructure, buildings, improvements, and machinery and equipment having an appreciable and calculable period of usefulness. Utility operating expenses which include all outflows for operating the utilities. -10- CITY OF CARMEL NOTES TO FINANCIAL STATEMENT (Continued) Other disbursements which include, but are not limited to the following: interfund loan pay- ments, loans made to other funds, internal service disbursements, and transfers out that are authorized by statute, ordinance, resolution, or court order. F. Interfund Transfers The City may, from time to time, transfer money from one fund to another. These transfers, if any, are included as a part of the receipts and disbursements of the affected funds and as a part of total receipts and disbursements. The transfers are used for cash flow purposes as provided by various statutory provisions. G. Fund Accounting Separate funds are established, maintained, and reported by the City. Each fund is used to account for money received from and used for specific sources and uses as determined by various regulations. Restrictions on some funds are set by statute while other funds are inter- nally restricted by the City. The money accounted for in a specific fund may only be available for use for certain, legally restricted purposes. Additionally, some funds are used to account for assets held by the City in a trustee capacity as an agent of individuals, private organiza- tions, other funds, or other governmental units and therefore the funds cannot be used for any expenditures of the unit itself. Note 2. Budgets The operating budget is initially prepared and approved at the local level. The fiscal officer of the City submits a proposed operating budget to the governing board for the following calendar year. The budget is advertised as required by law. Prior to adopting the budget, the governing board conducts public hearings and obtains taxpayer comments. Prior to November 1, the governing board approves the budget for the next year. The budget for funds for which property taxes are levied or highway use taxes are received is subject to final approval by the Indiana Department of Local Government Finance. Note 3. Property Taxes Property taxes levied are collected by the County Treasurer and are scheduled to be distributed to the City in June and December; however, situations can arise which would delay the distributions. State statute (IC 6- 1.1- 17 -16) requires the Indiana Department of Local Government Finance to establish property tax rates and levies by February 15. These rates were based upon the pre- ceding year's March 1 (lien date) assessed valuations adjusted for various tax credits. Taxable property is assessed at 100 percent of the true tax value (determined in accordance with rules and regulations adopted by the Indiana Department of Local Government Finance). Taxes may be paid in two equal installments which normally become delinquent if not paid by May 10 and November 10, respectively. Note 4. Deposits and Investments Deposits, made in accordance with state statute (IC 5 -13), with financial institutions in the State of Indiana at year end should be entirely insured by the Federal Depository Insurance Corporation or by the Indiana Public Deposit Insurance Fund. This includes any deposit accounts issued or offered by a qualifying financial institution. CITY OF CARMEL NOTES TO FINANCIAL STATEMENT (Continued) State statutes authorize the City to invest in securities including, but not limited to, federal govern- ment securities, repurchase agreements, and certain money market mutual funds. Certain other statutory restrictions apply to all investments made by local governmental units. Note 5. Risk Management The City may be exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; job related illnesses or injuries to employees; medical benefits to employees, retirees, and dependents; and natural disasters. These risks can be mitigated through the purchase of insurance, establishment of a self- insurance fund, and /or participation in a risk pool. The purchase of insurance transfers the risk to an inde- pendent third party. The establishment of a self - insurance fund allows the City to set aside money for claim settlements. The self - insurance fund would be included in the financial statement. The purpose of participation in a risk pool is to provide a medium for the funding and administration of the risks. These risks may also be mitigated by the City by recording as a disbursement any replacement items purchased. Note 6. Pension Plans A. Public Employees' Retirement Fund Plan Description The Indiana Public Employees' Retirement Fund (PERF) is a defined benefit pension plan. PERF is an agent multiple- employer public employee retirement system, which provides retirement benefits to plan members and beneficiaries. All full -time employees are eligible to participate in this defined benefit plan. State statutes (IC 5 -10.2 and 5 -10.3) govern, through the Indiana Public Retirement System (INPRS) Board, most requirements of the system, and give the City authority to contribute to the plan. The PERF retirement benefit consists of the pension provided by employer contributions plus an annuity provided by the members annuity savings account. The annuity savings account consists of members' contributions, set by state statute at 3 percent of compensation, plus the interest credited to the member's account. The employer may elect to make the contributions on behalf of the member. INPRS administers the plan and issues a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole and for its participants. That report may be obtained by contacting: Indiana Public Retirement System 1 North Capital Street, Suite 001 Indianapolis, IN 46204 Ph. (888) 526 -1687 Funding Policy and Annual Pension Cost The contribution requirements of the plan members for PERF are established by the Board of Trustees of INPRS. -12- CITY OF CARMEL NOTES TO FINANCIAL STATEMENT (Continued) B. 1925 Police Officers' Pension Plan Plan Description The 1925 Police Officers' Pension Plan is a single - employer defined benefit pension plan. The plan is administered by the local pension board as authorized by state statute (IC 36 -8 -6). The plan provides retirement, disability, and death benefits to plan members and beneficiaries. The plan was established by the plan administrator, as provided by state statute. The plan admin- istrator does not issue a publicly available financial report that includes financial statements and required supplementary information of the plan. Funding Policy The contribution requirements of plan members for the 1925 Police Officers' Pension Plan are established by state statute. On Behalf Payments The 1925 Police Officers' Pension Plan is funded by the State of Indiana through the Indiana Public Retirement System as provided under Indiana Code 5- 10.3 -11. C. 1937 Firefighters' Pension Plan Plan Description The 1937 Firefighters' Pension Plan is a single - employer defined benefit pension plan. The plan is administered by the local pension board as authorized by state statute (IC 36 -8 -7). The plan provides retirement, disability, and death benefits to plan members and beneficiaries. The plan was established by the plan administrator, as provided by state statute. The plan administrator does not issue a publicly available financial report that includes financial state- ments and required supplementary information of the plan. Funding Policy The contribution requirements of plan members for the 1937 Firefighters' Pension Plan are established by state statute. On Behalf Payments The 1937 Firefighters' Pension Plan is funded by the State of Indiana through the Indiana Public Retirement System as provided under Indiana Code 5- 10.3 -11. D. 1977 Police Officers' and Firefighters' Pension and Disability Fund Plan Description The 1977 Police Officers' and Firefighters' Pension and Disability Fund is a cost- sharing multiple- employer defined benefit pension plan administered by the Indiana Public Retirement System (INPRS) for all police officers and firefighters hired after April 30, 1977. -13- CITY OF CARMEL NOTES TO FINANCIAL STATEMENT (Continued) State statute (IC 36 -8 -8) regulates the operations of the system, including benefits, vesting, and requirements for contributions by employers and by employees. Covered employees may retire at age 52 with 20 years of service. An employee with 20 years of service may leave service, but will not receive benefits until reaching age 52. The plan also provides for death and disability benefits. INPRS issues a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole and for its participants. That report may be obtained by contacting: Indiana Public Retirement System 1 North Capital Street, Suite 001 Indianapolis, IN 46204 Ph. (888) 526 -1687 Funding Policy The contribution requirements of plan members and the City are established by the Board of Trustees of INPRS. The City also contributes to an additional pension plan unique to the City. Information regarding this plan may be obtained from the City. -14- SUPPLEMENTARY INFORMATION — UNAUDITED For additional financial information, the City's 2011 Annual Report information can be found on the Gateway website: https: / /gateway. ifionline.orq /. Differences may be noted between the financial information presented in the financial statement contained in this report and the financial information presented in the Annual Report of the City which is referenced above. These differences, if any, are due to adjustments made to the financial information during the course of the audit. This is a common occurrence in any financial statement audit. The financial informa- tion presented in this report is audited information, and the accuracy of such information can be determined by reading the opinion given in the Independent Auditor's Report. The supplementary information presented was approved by management of the City. It is presented as intended by the City. -15- Cash and Invesvnenls - beginning 011 Y OF CARMEI. COMBINING SCHEDULE OF RECEIPTS. DISBURSEMENTS, AND CASH AND INVESTMENT BALANCES - REGULATORY BASIS For The Year Ended Decwnber 31. 2011 Local Motor Road User VeBch: Ave Tbroughtare Economic Housing Fee Cqlarul Rahway Street Fund Fund Aulhonl1r Furb S 7.742 546 $ 3,080,647 $ 1,157,505 $ 586,929 $ 33,252 S 50,456 $ 127.036 Receipts'. Taxes 28763,894 4,013,612 - - - Licenses and permits 1,293505 - • 141.604 - 20,920 Inlergovernmenlal 21.705,033 2,367,880 997,537 - - - - Cflarges for servic s 5,705,477 - - - - 24,955 Fines and forfeits 541.863 - - - - 34705 Utility fees - - - - - - Mhos receipts 1,109201 57,278 2.158 914 20,060 81 2.009 Total receipts 59.118,973 6.438.770 999,695 142.578 20.060 81 82,589 Disbursements'. Peg-serial services 41,683718 4,954,115 - - - Samaria 1,221,683 1,244457 • - - - - Otherservicesandcharges 8 ,959,164 1,679,113 195,042 - - - 99,141 Debt service- privapal and interest 10,810,633 - - - - - Capital outlay 783,501 583,201 - - - - Utilnyoperatingexpenses - - - - - - - OthoidiisbursementS 575.121 02 - - - - 13.893 Tote] Jisbursemenls 04,033 820 8,461.268 195,042 - - - 113.034 Excess (doliciency) of receipts over dlsboi semenls (4 914847) (2.022.499) 804 653 142.578 20,080 81 (30, 445) Cash and investments - ending $ 2,827699 5 1.058.149 S 1,962158 S 729,507 5 53.312 $ 58.537 5 97.391 -16- Cash and investments - beginning CITY OF CARMEL COMBINING SCHEDULE OF RECEIPTS, DISBURSEMENTS, AND CASH AND INVESTMENT BALANCES - REGULATORY BASIS For The Year Ended December 31, 2011 (Continued) Hazardous Clew's Matenal Levy Cumulative Record Deferral Rainy Response Excess Cap0al Porpoluulion Fund Day Fund Fund Development 69,108 $ 515,429 $ 6,448,627 $ 5492 $ 334 405 $ 2248.315 Receipts'' Taxes - - - - 1,714,954 Licenses and pom'ils - - - Intergovernmental - - - - 172,037 Charges for services 18,175 - 2,027 - - Finesandforfeits - 63,200 - - - Utility fees - - - - - Other receipts 98 723 8.943 10 - 3488 Total receipts 18,273 63,923 8943 2.037 - 1.890,479 Disbursements'' Personal sevices - 13,906 - - - - Supplies 139 3,544 - 1,659 Other services and charges 1,914 10,311 - - - 434,814 Dela service- pnncipal and interest - - - - - 844,364 Capital cutlay 5.774 18,673 - - - 597,076 Utility operating enpenses - - - - Other disbursements - - - 334405 Total disbursements 7 827 46,434 - 334,405 187777X23 Excess (deficiency) of receipts over disbursements 10.446 17.489 8,943 - 2,037 (334,405) 12556 Cash and investments - ending $ 79,554 $ 532,918 $ 6 457 570 $ 7,529 S • $ 2,280871 -17- Cash and hivesvnen( s - beginning Receipts Taxes Licenses and permits Intergovernmental Charges for services Fines and Ioriells Utility roes Other receipts Total receipts CITY 00 CARMEL COMBINING SCHEDULE: OF RECEIPTS, DISBURSEMENTS, AND CASH AND INVESTMENT BALANCES - REGULA I ORY BASIS For The Year Ended December 31. 2011 IConlinued) Cumulative Police Fire Judicial Drug Parks Capital Pension Pension Salary Task Capital Improvement Fund Fund Fees Force $ 731,658 5 481,134 $ 3,831602 $ 4666463 5 646,106 197,224 494,507 633,478 - 23,604 38,788 980 683 15 951 19.826 22 101.208 980 197,907 510,458 653,304 38810 124812 Disbursements'' Personal services - - 1830 2,623 - Supplies - - - - - 4,095 Other services and tliarges - 6,123 100 100 - 129,871 Debt service- pnropal and interest - - - - Capital outlay 43,995 104,550 - - - 17,922 Utility operating expenses - - - - - Otherd.sbursemenls - - 480,230 542,741 Total <I.sbursemenls E+cess (deliciency) 01 reWlpls over disbursements 43.995 110,679 482,160 545,464 - 152,398 (43,015) 87 228 28 298 107,840 38 810 127,586) Cash and investments - ending 5 088643 $ 568.362 $ 3860900 $ 4794.393 5 38,810 $ 618,520 -18- CITY OF CARMEL COMBINING SCHEDULE OF RECEIP I 5. DISBURSEMENTS, AIJD CASH AND INVESTMENT BALANCES. REGULATORY BASIS For Tiro Year Ended December 31, 2011 (Continued) Fire Parks Gift Gilt Ambulance Grant Police Onu'ireo Fund Fund Fund Fund Gift City Cash and investments - beginning 1 3486 5 51,458 5 423.737 $ 900.109 5 33,877 5 49,929 Rece ps'. Taxes - - - - - Licenses and permits - - - - - - Intergovernmental - - - 376,687 ChargesJorservices - - 906,396 - Fines and leitelts - - - - - Utility lees - - - - - Other receipts 70,988 5269 103 195 10,016 17,373 394 Total receipts 70.988 5.269 1 009 591 386 703 17 373 304 Disbursements' Personal services - - - - - Supplies - - 53,171 - Otherservicesandcharges - - - 739,337 - Damservice - pm inopel end interest - - - Capital outlay - - 841,153 - - - Ulilityoperalingexpenses - - - - Other disbursements 58.113 3,149 7401 276 16,135 55 Total dlsbursemcnts .8.113 3.149 001 725 739,613 16 135 55 Excess (deficiency) or receipts over disbursements 12,875 2.120 107,866 (352,910) 1.238 249 Cash and n oslments - ending 5 16.361 3 53,588 $ 531,603 $ 547,199 5 35.115 $ 50,178 _19_ Cash and investments - beginning CITY OF CARMEI. COMBINING SCHEDULE OF RECEIPTS. DISBURSEMENTS, AND CASH AND INVESTMENT BAI ANCES - REGULATORY BASIS For The Year Ended December at 2011 (Continued) Community Court Relations Public Crc Carmel Inlerpirter OM Defenders Redevelopment Regions City Fund Fund Fund Commission Account Court 4 948 $ 2,451 $ 1 272 5 694.511 5 2653.951 $ 172.247 Receipts: Ta•es - - - - 19,558,433 Licensesandperails - - - - - - Intergovernmental - - Charges for services - - 525 - 140,287 Finesarxlfodeits - - - - 1,816.154 Utility fees - - - - - - Olherreceipts 7 7,542 2 29 11,708,313 Total recepts 7 7.542 527 29 31,416,033 1,816,154 Disbursements', Personal services - - - - 600.984 Supplies - - - - Othersory :ces and charges - - - 3,214 3,290,883 - Deutselvic o - principal and interest - - - 608,021 14,060,534 Copitalcetla7 - 10,211089 Uulily opeamq expenses - - - - - Other disbursements - 6.752 - - 176.035 1813,287 Total disbursements - 6,752 671.235 28 345,585 1813287 F.vicess (detdency) of receipts over disbursements 7 790 527 16712(15) 3,070,448 2 867 Cash and incestments - ending 5 4,955 S 3,241. 5 1,799 5 23,305 5 5,724399 5 175.114 _20_ Cush and Investments - been ring CITY OF CARMEL COMBINING SCHEDULE OF RECEIPTS. DISBURSEMENTS, AND CASH AND INVESTMENT BALANCES • REGULATORY BASIS Por The Year Ended Decernber 31.7011 (Continued} Park Parks Parks Iease 2004 Cumuldlive Irrpsa Program Ronan Rental Road Capital Fee Fund Fund Fund Bond Sewer Fund $ 440.083 $ 543,381 $ 13.292 5 22,438 $ 1,911,231 $ 1171625 Receipts'. Takes - - 743,836 749,001 - Licenses and pennies - - - - 946,107 Intergovernmental - - 74,618 75,137 - Charges lor services 3,148,768 4,529,316 - - - Fines and lorfeits - - - - - Utility fees - - - - - Other receipts 28,295 39.091 84 86 2.289 1 029 Total receipts 3,177064 4,568,407 818.538 824224 2289 947.136 Disbursements: Personal services 2.173,233 2.153,309 - - - Supplies 217,175 456,435 - 22,462 Other services and charges 491.941 1,541.812 6,913 - 59,496 Del service - principal and interest • 821,088 831,810 - Capital outlay - 4,783 - - 593,970 1,023,986 May ape rating expenses - - Other disbursements 13,700 Total disbursements 2.882,349 4,170,129 828.001 831,810 675,934 1,023,986 Excess 1delidency) al racoipts over disbursements 294715 398,278 (9,463) (7,585) (673,045) 1,76,850, Cash and investments - ending S 734,778 E 941,659 $ 3,829 S 14,852 5 1,237,586 E 1.094.775 -21- CITY OF CARMEI, COMBINING SCHEDULE OF RECEIPTS, DISBURSEMENTS, AND CASH AND INVESTMENT BALANCES - REGULATORY BASIS For The Year Ended December 31, 2011 ( Contineech Civic Bartell Square Old Keystone Health Workers Law Construction Town /126Th Ave Insurance Comp Fund Fund Street Fund Fund Fund Cash and investments • beginning 5 6 $ 594 S 457 S 7,042.847 $ 3.733.245 S 416.447 Receipts: Taxes Licenses end permits Intergovernmental Charges tor services Fines and Wells Uglily tees Other receipts Total receipts Disbursements: Personal services Supplies Other services and charges Debt service - principal and Interest Capital outlay UNily operating expenses Other di sbursemnnls Total disbursements Excess (deliciancy) 01 receipts over disbursements 1 9,322 11,251 947 217 059 9,322 11,251,947 217.059 7,114 - 58,827 687,701 - • 11,213780 557,296 753.642 11.213,780 557,296 Cash and investments • ending S 6 5 1 (744,320) 38,157 (340.237) 595 $ 458 S 6.298.527 S 3.771,412 5 76.210 _22_ Cosh and investments - beginning Receipts. Taxes Licenses and permits Intergovernmental Charges for services Fines and foneits U41ily lees Other receipts Total receipts CITY OF CARMEL CONIBINING SCHEDULE OF RECEIPTS, DISEURSEMEI4TS, ANO CASH AND INVESTI1ENT BALANCES - RECL RATORY BASIS For The Year Ended December 31. 2011 (Continued) Support For Barlett Sower The Payroll Lew Sewer Sewer CennecUen Arts Fund Surplus Operating Depreciating Fund 22.833 S 895,697 5 164.863 $ 7.309 5 5 0375,697 - 228,781 235,013 42875,454 1,292 368,363 54.427 45,046 235.013 42 875 454 1 292 6.744 060 54.427 273.827 D sbursenents: Personal services - - - Supplies • - - - Other services and charges 253,000 - - - - Debl service - pinclpal and interest - - - Caplal outlay - - - - 54.426 261.110 Utility operating expenses - • - 5394877 Other disbursements - 43 D32601 698 1,242893 - 1.310 Total disbursements 253,060 43032,601 698 6.637.770 54.426 262,420 Excess (de0oency) of receipts over disbursements (17,967) (157,147) 594 106.290 1 11,407 Cash and investments - ending 5 4846 S 738 550 $ 165,457 S 113.599 5 1 S 11,407 -23- Cash and invest /nu:as - uaginning Receipts'. Tales Licenses and pern0s Intergovernmental Charges for services Fines and Iotelts UGLly foes Other moceipts CITY OF CARMEL COMBINING SCHEDULE OF RECEIPT$, DISDURSEMENI5, AND CASH AND INVESTMENT BALANCES - IREGULAI CRY BASIS For Tne Year Ended Decanter 31, 2011 (Continued; Wastewater Bond Sewer Sewer 8 Availatglty Loan Inloresl Fund Sri At Bony Walcr Operating Water Bond 8 Water Inlerest Lepreciahon $ - S 699,899 $ 1471715 5 31,249 $ 1,072.280 $ 15,042 - - 15,738,126 - - 53,569 41,900 1,176802 617032 148 121,394 total receipts 70,611 41,900 1,176 802 16.355 158 146 121,391 Dlsnurseownts. Personal setvicos Supplies Other services and charges Debt service - principal and interest Capital outlay Uulny operating expenses Other disbursements Total disbursements 1.122,281 - - - 25,611 741.799 - - - 121,394 - - - 7,548,619 - 45,000 - - 8,800,459 140 70,611 741.799 1 122 281 16349078 148 171,394 En.cess (dobcieecyl el recuipls over d'sbmsements - (699,899) 54,521 0.099 Cash and investments - ending 5 - 5 - $ 1526,235 $ 37.329 $ 1.072,280 $ _24_ Cash and investments - beginning CITY OF CARMEL COMBINING SCHEDULE OF RECEIPTS, DISBURSEMENTS, AND CASH AND INVESTMENT BALANCES - REGULATORY BASIS For The Year Ended December 31. 2011 (Continued) I Iyorant Wells Meter Water Fargo Deposit Water V7aler Sinking Water Fund Connection Availability Fund Constr Talals $ 32,325 $ $ - $ 899,436 S 16,474 497 $ 74.645225 Receipts'. Taxes - - - - - 55,543,730 Licenses and permis - - - - 2.402,196 Intergovernmental - - - - - 27.117.742 Charges for services - - - - 14.523,714 Fines and forfeits - - - - - 2.455,922 UTAiiy fees 3,215 1,528901 65,554 - - 23.955,216 Other receipts 600 3.146 27 4,053.090 88164 74553.543 Total receipts 4015 1531,947 65581 4.053,090 88,164 200552063 Disbursements- Personal services Supplies Other services and charges Debt service - principal and interest Capital outlay Utility operating expenses Other disbursements 1 cial disbursements Excess (deficiency) of receipts over disbursements 51.584.108 3,232,454 • 17,961,116 900,000 - 4,220.570 - 3-1 279,301 78,033 19,824 - 16,485,565 33,311,149 350 7,438 - 4,600 3,294 12,959,179 371 524 1.277 - - 69,308421 350 1,356.996 21,101 4,22 70 16,488860 222.635.728 3665 174951 44.460 (172,080) (16.400696) (22.083,665) Cash mm investments- ending $ 3.5990 $ 174,951 $ 44,480 S 727,356 $ 73801 $ 52 '62 560 -25- Lessor Goveuimenlal aCYYNes: 2002 Fire Trunks 2003 911 Comm Center 2005 Carmel Police end Pee oeturunent 2007 DOGS Equipment 2008 Fed De paNnem 2008 Polka aid Flre Vehicles 2008 Pace Equipment 2009 Engineennp 2009 Gull Course 2009 Police VeNdo 2010 DOGS 6w Pmelll 2010 Fire department 2010 Fire de-Pertinent 2010 Gdl Course 2010 Poke department 2011 Police depaln 0e01 Total governmental activities Tana of annual lease paktumis CITY OF CAIIMEL SCHEDULE OF 1 EASES AND DEBT December 31, 2011 PurUreu l :1,,. Tin aks Purchase New 911 Center Equipment k10We Commend Vehicle Purchase vehicles Voce Prins miners Learners war out gear Purchase Pekoe Vehicles erd Flu [,craves tadins err e commas Purchase E.upes and F150 Commercial ifliwax) pump padres. vehicles Purchase equipment Purchase Ambulance Pushier Frre Trucks Inipalirn system Purchase Puke eras purmnse police care Description of Debt Purynse Tape me Annual Lease pa mek t case Lease BeonOm0 Ending Date Date 5 152,505 012:02 11.01-11 37,227 06-2503 05 -01 -11 60,424 05-24 05 08 -01.15 33,355 12-0607 06 01.11 57.421 12- 01,148 0501.13 120.360 07-2200 1201 -12 49,703 06.01,08 12.01 -01 16,741 03-01.10 0901-13 31,700 03.01.10 0901-14 181.379 09-01-09 0301-13 15,190 09.01 -10 09.01.14 32.050 10 -01 -10 01-01 -15 143,048 02 -15.11 06 -1520 139,150 10-01 -10 10-01-12 203,210 05-15.10 1115-13 202.9]1 104.05 -01 10-14414 1,510408 5 1,510400 Pnrgpal and Emmm9 Interest ae Pnnoipnl Within One Batmne veer 5 Governmental 500411ies Revenue bonds Revenue bends Revenue bonds Revenue bonds Revenue bends Revenue bonds Revenue bonds Puveruu bolls Peverue bonds Revenue bonds Revenue bonds Revenue bonds Revenue hosts Revenue fonds Revenue bands Revenue bonds Notes and loan saY ^de Notes and leans payable Notes end ran paym+e Notes and loans payolde Notes and loans payable Notes and Ions pa velar. Notes and 109001a4de Notes and Duns payable Notes and loom payable Notes and loam payable Notes all loans payable chutes and Isms payed. Total beau eenmnnlalaconlln Waslrnater: Revenue bonds Revenue ue blanch Tmb Wastewater Water Revenue bonds Revenue bonds Revenue bonds Revenue bonds Revenue bonds Nunes old loam p.Yablr. 2002 skeet Department Carmel Redevelopment Uvtntl Taxable Courty Op0 on Income Too Revenue Pnlundmg Bends Series 2006(1998 Otto Center relunde4 in 2006) 2001 Merchant Pointe Developer era 4ed 2003 Parkwood Ent 2006 Parkwo04 Weal 2005 Per1Ormino Ms Curler Carmel RedeveNymenl L5et vet Certificates of Participation Series 2010A Ceimd Palry W ymenl ,1.1,100 O4ndicelcs of Perpdpatim Serles 20100 Carmel Redevelopment Do W kl Cerldrutns of Pentepaom Series 2010C 1998 Alndnanln Square TIF Redevelopment restrict in Inclement Revenue Bonds Series 2004 A (Clarbn Hospital) Illinois Street Project Carmel Redn'ek lament Gckid Tent le To. Increment Revenue Bonds of 2908100i Genie!) of Ca reel (114) Redevelopment 01101pnt, 'Openly Gillian Income Tex Leaser Renlnl Revenue Ref timing Bonds of 2004 City nl Carmel Redevelopment way County Optical Income Tad Leine Rental Revenue Bonds Snits 2006 Cary n1 Carmel (IN) Redevelopment Aufnnty Couch Option Income To, Lease Rental Revenue Donets of 2010 City of COP Intl (nduna) Redevelopmml Authority Lease Rental Revenue Relundmg Bonds of 2011 2011 Installment Punhase AOeemenl Series A (Hots Bank 17 0000001 mu Inu1amem Purchase Agreement Snits B Mods Bans. 4 500 0000 2011 Instilment Purchase Aaenmem Series C (Halls DmP 1 970 000) Old Town Poopabes • Chaos -Parts 931 Dean 6 Doloe Harrill Parcel 14 Part& 14 Bobby John 010 1-1.2009100 Con lid cis IRegnns Bank 617 500 000) 5- 22.2097ICD Gil age P47 Controls Illepons 1340 $7 500 000) 8.31•2009100 Clancy Theater Equipment Sound IiP^pment end SECDA Seating (Merunkle Bank 510 000 000) 1- 29- 2010100 (Nmwnel Beni( of Indianapolis 110000 000) 6- 10.2010100 (united Fidefry Bonk 52 500 0001 ],262010100 C10C Contracts (Region Bank 510 000 CO, 2005'W1.Ieo6ler Plant E0Pondn 2i 113 Wastewater Expo:gam 2002A'Neter Revenue Bonds 200211 Water Revenue Bonds 2003A Water Refunding Revenue Bonds 2006 Plant Expansion Coupon Bonds 2008 Plarl Expnnson Gp Apprcdeborr Bonds 5:C Lines 0,915,000 6 797,031 5.580,000 966,996 780,000 7459,1 3955.000 383,825 4,150,000 357200 75,131,081 5200,000 37,905000 2,079900 2,510,000 28,175 16.304000 1025.975 1640,000 278,850 7,610000 913,405 12,935000 1,333,401 13,970 000 2660 -08 (4105.000 5,905,000 256]5 W) 1.211,000 25,190,000 696,542 17,000,000 259,250 9,500.000 1,030000 321,435 29230 546,543 120,000 1269,302 91,500 17,0 0,910 1.355644 7,331.683 599,289 9,847,952 777 302 1 0,000,000 701,261 2,500,000 157.657 10.000 000 675 679 384 82' 06 29 ¢91540 9,020,000 814,338 5 459,371 299 973 114]93]1 1 113 311 3,845.000 196861 1,615,000 313,]]5 945,000 487298 02,955,000 1215,638 24,632,875 1440200 1].254925 1 000000 Total Water 114 q] 800 ]473] Totals S 513]6622] 5 36.968585 -27- CITY OF CARMEL $CI IEDULE OF CAPI1At ASSETS December 31, 2011 Capital assets aio reported at actual or estimated historical cost based on appraisals or devaled current replacement cost. Contributed or donated assets are reported al estimated fair alve al the time received Ending Balance Governmental activities'. Land $ 30200255 Infrastructure 191,411,148 Buildings 54,153.373 Improvements other than buildings 6,249,529 Machinery, equipment and vehicles 23,236,475 Construction in progress 52,120 025 Total governmental activities 657,64.1905 Wastewater. Land 117,600 Infrastructure 46.830,439 Bulldmgs 31,020,885 Machinery, equipment and vehicles 9,561,635 Construction in progress 8,716.968 Total Wastewater 96.347,617 V,'alor. Land 2,171,797 Inhastmcture 98,846,901 Emldlrngs 2a 015569 Machinery, equryrment and vehicles 8,171067 Construction in progress 55,953,802 lolal Water 189,403,036 Total capital assets 943.452 558 _28_ CITY OF CARMEL AUDIT RESULT AND COMMENT BANK ACCOUNT RECONCILIATIONS - PAYROLL Depository reconciliations of the fund balances to the bank account balances were not completed for the Payroll fund for the audit period. The unit has corrected the issue for 2012 prior to the conclusion of the audit. Indiana Code 5- 13- 6 -1(e) states: "All local investment officers shall reconcile at least monthly the balance of public funds, as disclosed by the records of the local officers, with the balance statement provided by the respective depositories." At all times, the manual and /or computerized records, subsidiary ledgers, control ledger, and recon- ciled bank balance should agree. If the reconciled bank balance is less than the subsidiary or control ledgers, then the responsible official or employee may be held personally responsibility for the amount needed to balance the fund. (Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7) -30- STATE OF INDIANA ) AN EQI)AI, OPPOR1'UNITI' 11: i\II'LO1'ER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM P418 INDIANAPOLIS. INDIANA 46204 -2769 Telephone: (317) 232 -2513 Fax: (317) 232 -4711 Web Site: www.in.gov /shin INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 TO: THE OFFICIALS OF THE CITY OF CARMEL, HAMILTON COUNTY, INDIANA Compliance We have audited the compliance of the City of Carmel (City) with the types of compliance require- ments described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2011. The City's major federal programs are identified in the Summary of Auditor's Results section of the accom- panying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City's man- agement. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and OMB Circular A -133 Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circum- stances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with those requirements. In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2011. Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with require- ments that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on inter- nal control over compliance in accordance with OMB Circular A -133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. -32- INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 (Continued) A deficiency in internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over com- pliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of the City's management, City Council, others within the entity, federal awarding agencies, and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. In accordance with Indiana Code 5- 11 -5 -1, this report is a pad of the public records of the State Board of Accounts and of the office examined. July 12, 2012 -33- STATE BOARD OF ACCOUNTS CITY OF CARMEL SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended December 31, 2011 Federal Grantor Agency /Pass- Through Entity Cluster Title /Program Title /Project Title Pass- Through Federal Entity (or Other) Total CFDA Identifying Federal Awards Number Number Expended U.S. DEPARTMENT OF JUSTICE Direct Grant Bulletproof Vest Partnership Program 16.607 CY 2011 $ 7,562 Pass - Through Indiana Criminal Justice Institute ARRA - Public Safety Partnership and Community Policing Grants Mobile Laptop Upgrade JAG Program Cluster ARRA - Recovery Act - Edward Byrne Memorial Justice Assistance Grant (JAG) Program /Grants to Slates and Territories Total for federal grantor agency 16.710 2008 -CK -WX -0395 211,653 16,803 2008 -DD -6X -0326 23,604 242,819 U.S. DEPARTMENT OF TRANSPORTATION Pass - Through Indiana Department of Transportation Highway Planning and Construction Cluster ARRA - Highway Planning and Construction 20,205 901163 20,007 Highway Planning and Construction Cool Creek North Trail Total for federal grantor agency 20.205 600390 58,345 78,352 U.S. ENVIRONMENTAL PROTECTION AGENCY Pass - Through Indiana Department of Environmental Management ARRA - Capitalization Grants for Clean Water State Revolving Funds 66.458 WW09282901 699,900 U.S. DEPARTMENT OF ENERGY Direct Grant ARRA - Energy Efficiency and Conservation Block Grant Program (EECBG) 81.128 DE- SC0002071 522.634 I2etro /Relit of Metal Halide and High Pressure Sodium Street Lights to LED Street Lights Total federal awards expended 5 1,543.705 The accompanying not is an integral part of the Schedule of Expenditures of Federal Awards. -36- CITY OF CARMEL NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Carmel and is presented in accordance with the cash and investment basis of accounting used in the preparation of the financial statement. Accordingly, the amount of federal awards expended is based on when the disbursement related to the award occurs except when the federal award is received on a reim- bursement basis. In these instances the federal awards are considered expended when the reimbursement is received. -37- CITY OF CARMEL SCHEDULE OF FINDINGS AND QUESTIONED COSTS Section I— Summary of Auditor's Results Financial Statement: Type of auditor's report issued: Unqualified Internal control over financial reporting: Material weaknesses identified? no Significant deficiencies identified? none reported Noncompliance material to financial statement noted? no Federal Awards: Internal control over major programs: Material weaknesses identified? no Significant deficiencies identified? none reported Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A -133? no Identification of Major Programs: CFDA Number Name of Federal Program or Cluster 66.458 ARRA - Capitalization Grants for Clean Water State Revolving Funds 81.128 Energy Efficiency and Conservation Block Grant Program (EECBG) Dollar threshold used to distinguish between Type A and Type B programs: 5300,000 Auditee qualified as low -risk auditee? yes Section 11— Financial Statement Findings No matters are reportable. Section 111— Federal Award Findings and Questioned Costs No matters are reportable. -38- CITY OF CARMEL EXIT CONFERENCE The contents of this report were discussed on July 17. 2012, with Diana Cordray, Clerk- Treasurer, and Richard Sharp, President of the City Council. The officials concurred with our audit finding. The contents of this report were discussed on July 25, 2012, with James Brainard, Mayor. The official concurred with our audit finding. -40- INTERNET REPORT ID: 486490 VERSION: 1 8/10/2012 5:15:37 PM OMB No. 0348 -0057 FORM SF -SAC U.S. DEFT. OF COMM,- Econ. and Slat Adrian.- U.S. CENSUS BUREAU ACTING AS COLLECTING AGENT FOR UFFIL,t U• MANPULMtNI ANV btu/lat.! Data Collection Form for Reporting on AUDITS OF STATES, LOCAL GOVERNMENTS, AND NONPROFIT ORGANIZATIONS for Fiscal Year Ending Dates in 2010, 2011, or 2012 O. Complete this form, as required by OMB Circular A -133, "Audits of States, Local Governments, and Non - Profit Organizations." PART 1 GENERAL INFORMATION (To be completed by auditee, except tor Items 6, 7, and 8) 1. Fiscal period ending date for this subrnission 2. Type of Circular A -133 audit 1 nX Single audit 20 Program-specific audit 3. Audit period covered 113 Annual 3 • Other — Months Month Day Year 12 / 31 /2011 2 ❑Biennial 4. Auditee Identification Numbers • a. Primary Employer Ident (cation Number (EIN) d. Data Universal Numbering System (DUNS) Number k 51— D � Y e ` 7 2 0 8— 7 0 3 — 3 3 2 0 b. - ulliple . coy) red in this report? 1 • Yes 2 No e. Are multiple DUNS covered in this report? 1 ❑ Yes 213 No c. If Pad em •.• _ " •es," complete Part I, Item 4c f. If Part I, Item 4e = "Yes," complete Part I, Item 4f o• the c. tin lion .heel on Page 4. on the continuation sheet on Page 4. 5. AUDIT - IN OR ATION 6. PRIMARY AUDITOR INFORMATION To be completed by auditor) a. Primary auditor name STATE BOARD OF ACCOUNTS a. Auditee ame CITY OF RMEL b. Primary auditor address (Number and street) 302 W. WASHINGTON 5T, RM Ea 16 b. Auditee : d• ess Numb e and - 1 CIVIC SOVAR City INDIANAPOLIS City CARMEL State ZIP + 4 Code IN 4 F7 d 'Al Slate ZIP + 4 C..e IN 4 • I ..s .'• c. Primary auditor contact Name MIKE BOZYMSKI, CPA c. Auditee contact Name DIANA CORDRAY ( Itle DEPU STATE EXAMINER Title CLERK - TREASURER ary auditor contact telephone 317 2 — 2513 d. Auditee contact telephone (317 ) 571 — 2414 • ary a + tor c. tact FAX 23 •711 e. Auditee contact FAX f. P . ary au •' •r con •.ct . -mail F' • DATA aOA.I OV f. Auditee contact E -mail DCORDRAY@CARMEL.IN.GOV g. • • DITO - STAT EN — T• e . elements and information elude n this m are i Wiled o tho prescribed by OMB .7c rr A -13 . The in rnatio, inclu• ed in Parts II and III of the fo , excel, or Pa II, Item 7, 8, . nd 9a -9g, was transferred from the . ditor' eport(s) f the •eriod described in Part I, Items 1 and 3, .nd i of a su • -titu - for such re.- • . The auditor has not p.. • Red any au•,iting ! ocedure : ce th date of the auditor's report(s). A cop . of th repo • package ired by OMB Circular A -133, w ch in, u • he com. • - audi . report(s), is available i its e •ly from t. • .uditee , the . •dress provided in Pad I of t• Is form. As re ; ed by OM: ircular • 33, the information in Pa - 11 an of this form .s en t• d in s form by the auditor bas-, • Information incl sled in t• • re. .nirlg package. The auditor has not performed a • additio .1 audit) procedures in connection with the comp • on of his f. n. g. AUDITEE CERTIFICATION STATEMENT — This is to certify that, to the best of my knowledge and belief, the auditee has: (1) engaged an auditor to perform an audit in accordance with the provisions of OMB Circular A -133 for the period described in Part I, Items 1 and 3; (2) the auditor has completed such audit and presented a signed audit report which states that the audit was conducted in accordance with the provisions of the Circular; and, (3) the information included in Parts I, 11, and III of this data collection form is accurate and complete. I declare that the foregoing is true and correct. Auditee certification ' ' - , Date I,; - ., IELECTRONICALLY,CERTIFIED : r1 • ,: 10/1/2012,- , p, 7a. Add Secondary auditor inform ion? •ptr• al) 1 • Yes 2 [50 No b. If "Yes," complete Part I, Item 8 on th- cont ation sheet on page 5. Name of•dertifying official; I T ( ! I ;(i-,( g1 III' lI "'.!,-'r; ,1I'- '. =!(s', .'DIANA L. CORDRAY Title 6f certlfying.bfficial 11 .. H•! CLERK TREASURER 'Y 11 ' lC%' \ e..' ,I iIII.. l..4 ., . , I : , J LC 1ISJI0N Apuditor'cedification+ I it.,. I' .. 1 . .late I''O remit, - IC): is i • ml . -• ( , ELECTRONICALLY - CERTIFIED 9/2 012 NC, l.ml<`" til'i -.,.J' t • INTERNET REPORT ID: 486490 VERSION: 1 Primary EIN: 3 5 6 0 0 0 9 7 2 To be completed by auditor Page 2 FORM SF -SAC 15-16 .20101 1. Type of audit report Mark either: 1 13 Unqualified opinion OR any combination of: 2 ❑ Qualified opinion 3 • Adverse opinion 4 • Disclaimer of opinion 2. Is a "going concern" explanatory paragraph included in the audit report? 1 • Yes 2I] No 3. Is a significant deficiency disclosed? 1 • Yes 2 13 No 4. Is a material weakness disclosed? 1 ❑ Yes 2 12 No 5. Is a materia •. oomph --ice disclosed? 1 ❑ Yes 2 © No PA : 11 DE • AL PROGRAMS (To be completed by auditor) 1. Does th udit 's report include a statement that the auditee's financial • . ents' ude •epartments, .. •ncies, or other organizational units expen. g $ 0,002 or more in ' ed- .l awards that have separate A -133 audits w ch are .1 included ' this au 't? (AICPA Audit Guide, Chapter 13) 1 ❑ Yes 2 n% No 2. What is 1 • doll .r thres•.id to . tingu Ty • A and Type B programs? Ci • b)) $ 300,000 (OMB ular -133 .521 3. Did the audite- .ualif s a to -risk au.itee? • .530) 1 13 Yes 2 • No 4. Is a significant deficiency dis. osed for any m. .r program? (• .510(a)(1)) i ❑ Yes 2 © No 5. Is a material weakness disci. ed or any major .rogram? (§ .5 0(a)(1)) 1 ❑ Yes 2 EJ No 6. Are any known questioned costs report d? (• _ .510(a)(3) or i 1 ❑ Yes 2 ) No 7. Were Prior Audit Findings related to di r - t fu •'. • .wn in the S mary schedule of Prior Audit Findings? ( §_ 315(b)) 1 • Yes 2 E1 No 8. Indicate which Federal agency(ies) have curren year audit - dings re : led to dire • nding or prior audit findings shown in the Summary Schedule of Prior Audit Findings related t. + tree ndin (Mark ) all ,at apply or None) 98 ❑ U.S. Agency for Inter- 39 • General Services • dmi . ration .. ■ ation: Archiv: - • rid 1s CI U.S. Department national Development 03 • Health and Human ices Rec. is Ad istr . 'on of State 10 • Agriculture 97 • Homeland Security •5 ■ , ional dowm f. 20 ❑ Transportation e Art t ❑ Treasury 23 • Appalachian Regional 14 • Housing and Urban Commission Development 0s / Nat + 1al En . me for .4 ❑ Veterans Affairs 11 • Commerce 1 Huma. ies 03 ❑ Institute of Museum and 00 ® None 94 ❑ Corporation for National Library Services 47 ation Science ❑Other — Specify: Fou•.ation and Community Service 15 • Interior o7 \ • ice of Natio al Dr g 12 • Defense 16 • Justice ontrol Polio 84 • Education 17 • Labor 59 ❑ Small Busi •ss 81 • Energy 09 ❑ Legal Services Corporation Administr ton 66 ❑ Environmental 43 • National Aeronautics and 96 • Social Se rity Protection Agency Space Administration Administrati.. Page 2 FORM SF -SAC 15-16 .20101 0 D n 4 w 6 N/A for NONE �„� INTERNET REPORT ID: 486490 VERSION: 1 8/10/2012 5:15:37 PM (Page 3 - #1 of 1) Primary EIN: 3 5 6 0 0 0 9 7 2 FEDERAL PROGRAMS - Continued 9. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 10" AUDIT FINDINGS CFDA Number Research and develop- p ment (c) A R R A3 (d) Name of Federal program p g (e) Amount expended p (ff Direct award (g) Major program Type(s) of compliance requirement(s)5 (a) Audit finding reference number(s)5 (b) Major program (h) It yes, type audit report 4 report (D Federal Agency Extension 2 (a) (b) 1 1 6 .607 1 ❑Y 2 %7 N EY 2 Al N BULLETPROOF VEST PARTNERSHIP PROGRAM $ 7,562 .00 13Y 2 N 1•Y 2 3 N 0 N/A 1 1 6 .710 1❑ Y 2 3 N 1 2 Y 20N ARRA.PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $ 211,653 .00 1 D Y 2I N 1• Y 2 ®N 0 N/A 1 6 .81' 1❑Y 2XJN 1r7Y ARRA-RE•• VERY ACT- ARD BYRNEMEM•' AL C $ 29,604.00 1•Y 2 ®N 1 Y 2,N O NIA 2 r J CE AS 'STANG GRAN AG)PR•• 2 1 0 1 05 I B�EY 2 N N 1 X AND CONSTRUCTION .00 1�pMIY 2 LRI N ❑ IAN O N/A $ 20,007 21.1 N ARRA -HIG- AY PLANNIN' I 1 0 Y .:IN 1 2 7 N IGHWA PLANNING AND •NSTRUCTIO $ 50,345 .00 1•Y 2 3 N 11 Y 2 UN O N/A 2 1 0 l .205 l 458 1 , Y . N 1 —r❑ Vil Y N AR {APR RATION RANTS FOR CLEAN TER .00 1U -e4 Y 1 3 • O MIA 2 STATE' • • ' G FUNDS 699s(70-* —N 8 1 1 .128 1 ��•II Y 2 N kJ 1 '' Y 29N ARRA-ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM IEECBG) $ 522,634 .00 1 L7 Y 2 I N 1 3 Y 2 EN D O NIA 1 0 Y 2EN 1•Y 2 0N $ .00 1•Y 2 0N 1•Y 2•N 1 ❑Y 2•N 1EY 2EN $ .00 1 ❑Y 2•N 1 0Y 2•N I I' 1 0Y 2 ❑N 1•Y 2•N $ .00 •Y 2•N 1•Y 2•N ' $ 1,543,705 .00 TOTAL FEDERAL AWARDS EXPENDED 1 See Appendix 1 of instructions for valid Federal Agency two -digit prefixes 2 Or other identifying number when the Catalog of Federal Domestic Assistance (CFDA) number is not available. (See Instructions) 7 American Recovery and Reinvestment Act of 2009 (ARRA). 4 If major program is marked "Yes." enter only one letter (U = Unqualified opinion, O = Qualified opinion, A = Adverse opinion, D = Disclaimer of opinion) corresponding to the type of audit report in the adjacent box. If major program is marked 'No,' leave the type of audit report box blank. 5 Enter the letter(s) of all type(s) of compliance requirement(s) that apply to audit findings (i.e., noncompliance, significant deficiency (including material weaknesses), questioned costs, fraud, and other items repotted under §_ .510(a)) reported for each Federal program. A. Activities allowed or unallowed E. Eligibility I. Procurement and suspension L. Reporting B. Allowable costs /cost principles F. Equipment and real property management and debarment M. Subrecipient monitoring C. Cash management G. Matching, level of effort, earmarking J. Prooram income N. Special tests and provisions D. Davis — Bacon Act H. Period of availability of Federal funds K. Real property acquisition and O. None o �•ti-.- INTERNET REPORT ID: 486490 VERSION: 1 8110/2012 5:15:37 PM Primary EN: 3 15 6 0 0 0 9 7 2 PART 1 Item 5 Continuation Sheet m c. List the multiple Employer Identification Numbers EINs) covered in this report. f. List the multiple DUNS covered in the report. 1 N I- A 21 - 47 - 1 N 1_ A _ 21 - _ 2 - 22 - 42 - 2 - - 22 - - 3 - 23 - 43 - 3 - _ 23 - - 4 _ 24 - 44 - :;'' 26 - - - 1!! :111 9 F 48 �_ - - - 29 lik 29 - 1 - 10 - - 30 - - 30 10 _ 50 11 - 31 _ 51 - 11 — — 31 — — 12 _ 32 - 52 . - 12 - - 32 - - 13 33 53 - 13 - - 33 - - 14 - 34 - 54 - 14 - - 34 - - 15 - 35 _ 55 - 15 — — 35 — — 16 - 36 - 56 - 16 - - 36 - - 17 - 37 - 57 - 17 - - 37 - - 18 _ 38 - 58 - 18 - - 38 - - 19 _ 39 - 59 - 19 - - 39 - - 20 - 40 _ 60 - 20 - - 40 - - m INTERNET REPORT ID: 486490 VERSION: 1 (page 5 - #1 of 1) Primary EIN: 3 5 6 0 0 0 9 7 2 PART 1 GENERAL INFORMATION — Continued 8. Part I, Item 8, Secondary Auditor's Contact Information. (List the Secondary Auditor's Contact information) 1. a. Secondary Auditor name N I A 2. a. Secondary Auditor name 3. a. Secondary Auditor name b. Secondary Auditor address (Number and street) b. Secondary Auditor address (Number and street) b. Secondary Auditor address (Number and street) City City City State ZIP + 4 Code _ I State ZIP + 4 Code 1 _ State ZIP + 4 Code c. Secon try • u.itor contact Name \ \ c. ;econdary • . .itor cordact Name r . econdary Audior co ad Na Tit l: / \ J Title Ile d. Se.onda� Audis contact telephone d. .econdary • .. .r coryll act telephone d. ' econdary Auditor contact telephone e Sec • ndary Audit. con :ct FAX -. Seco .ary Au.' or co act FAX e. Seco dary A .itor contact FAX f. Secondary Auditor contact E -mail f. Secondary Auditor contact E -mail f. Secondary Auditor contact E -mail 4. a. Secondary Auditor name 5. a. Secondary Auditor name 6. a. Secondary Auditor name b. Secondary Auditor address (Number and street) b. Secondary Auditor address (Number and street) b. Secondary Auditor address (Number and street) City City City State ZIP + 4 Code _ State ZIP + 4 Code _ State ZIP + 4 Code c. Secondary Auditor contact Name c. Secondary Auditor contact Name c. Secondary Auditor contact Name Title Title Title d. Secondary Auditor contact telephone d. Secondary Auditor contact telephohe \ /Secondary d. 1 Secondary Auditor contact telephone e. Secondary Auditor contact FAX e. Auditor contact FAX e. Secondary Auditor contact FAX f. Secondary Auditor contact E -mail f. Secondary Auditor contact E -mail f. Secondary Auditor contact E -mail