2012 City of Carmel Audit B42607
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, 2012 to December 31, 2012
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FILED
09/17/2013
TABLE OF CONTENTS
Description Page
Schedule of Officials 2
Independent Auditor's Report 3-5
Independent Auditor's 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 6-7
Financial Statement:
Statement of Receipts, Disbursements, and Cash and Investment
Balances- Regulatory Basis 10
Notes to Financial Statement 11-16
Supplementary Information - Unaudited:
Combining Schedule of Receipts, Disbursements, and Cash and
Investment Balances -Regulatory Basis 18-26
Schedule of Payables and Receivables 27
Schedule of Leases and Debt 28
Schedule of Capital Assets 29
Supplemental Audit of Federal Awards:
Independent Auditor's Report on Compliance for Each Major Federal Program and on
Internal Control Over Compliance 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
Exit Conference 39
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•
SCHEDULE OF OFFICIALS
Office Official Term
Clerk-Treasurer Diana Cordray 01-01-12 to 12-31-15
Mayor James Brainard 01-01-12 to 12-31-15
President of the Board of
Public Works James Brainard 01-01-12 to 12-31-15
President of the
City Council Richard Sharp 01-01-12 to 12-31-13
Superintendent of
Water Utility Paul Pace 01-01-12 to 12-31-13
Superintendent of
Wastewater Utility Edward Wolf 01-01-12 to 12-31-13
Utility Director John Duffy 01-01-12 to 12-31-13
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=Ta:� ,t STATE OF INDIANA
,c;,'.":':-; -,,;� �
e
2,..\c_f_ ul , AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS
302 WEST WASHINGTON STREET
! ROOM E4I8
INDIANAPOLIS,INDIANA 46204-2769
Telephone:(317)232-2513
Fax: (317)232-4711
Web Site: www.in.gov/sboa
INDEPENDENT AUDITOR'S REPORT
TO: THE OFFICIALS OF THE CITY OF CARMEL, HAMILTON COUNTY, INDIANA
Report on the Financial Statement
We have audited the accompanying financial statement of the City of Carmel(City),which comprises
the financial position and results of operations for the year ended December 31, 2012, and the related notes
to the financial statement.
Management's Responsibility for the Financial Statement
Management is responsible for the preparation and fair presentation of this financial statement in
accordance with the financial reporting provisions of the Indiana State Board of Accounts as allowed by state
statute (IC 5-11-1-6). Management is responsible for and has determined that the regulatory basis of ac-
counting, as established by the Indiana State Board of Accounts, is an acceptable basis of presentation.
Management is also responsible for the design, implementation,and maintenance of internal control relevant
to the preparation and fair presentation of a financial statement that is free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on this financial statement based on our audit. We con-
ducted 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 involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statement. The procedures selected depend on the auditor's judgment, including the assess-
ment of the risks of material misstatement of the financial statement,whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the City's preparation and fair
presentation of the financial statement in order to design audit procedures that are appropriate in the circum-
stances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly,we express no such opinion. An audit also includes evaluating the appropriateness of account-
ing policies used and the reasonableness of significant accounting estimates made by management, as well
as evaluating the overall presentation of the financial statement.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
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I
INDEPENDENT AUDITOR'S REPORT
(Continued)
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As discussed in Note 1 of the financial statement, the City prepares its financial statement on the
prescribed basis of accounting that demonstrates compliance with the reporting requirements established by
the Indiana State Board of Accounts as allowed by state statute(IC 5-11-1-6),which is a basis of accounting
other than accounting principles generally accepted in the United States of America.
The effects on the financial statement of the variances between the regulatory basis of accounting
described in Note 1 and accounting principles generally accepted in the United States of America, although
not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion
on U.S. Generally Accepted Accounting Principles paragraph,the financial statement referred to above does
not present fairly, in accordance with accounting principles generally accepted in the United States of
America, the financial position and results of operations of the City for the year ended December 31, 2012.
Opinion on Regulatory Basis of Accounting
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, 2012, in accordance
with the financial reporting provisions of the Indiana State Board of Accounts described in Note 1.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued a report dated July 8,2013,
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 in considering the City's internal control over financial reporting and compliance.
Accompanying Information
Supplementary Information
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 is the responsibility of management and was derived from and relates directly to the underlying ac-
counting and other records used to prepare the financial statement. The information has been subjected to
the auditing procedures applied in the audit of the financial statement and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the financial statement or to the financial statement itself,and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
Schedule of Expenditures of Federal Awards is fairly stated, in all material respects,in relation to the financial
statement taken as a whole.
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INDEPENDENT AUDITOR'S REPORT
(Continued)
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, as
listed in the Table of Contents,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.
Other Information
Included in the financial statement are the receipts and disbursements activity from emergency tele-
phone system fees(IC 36-8-16), enhanced wireless emergency telephone fees(IC 36-8-16.5),and statewide
911 services fees(IC 36-8-16.7). In accordance with Indiana Code 36-8-16-14, Indiana Code 36-8-16.5-41,
and Indiana Code 36-8-16.7-38, these fees have been subject to an annual audit performed by the Indiana
State Board of Accounts and, in our opinion, are fairly stated, in all material respects, in relation to the finan-
cial statement taken as a whole.
Bruce Hartman
State Examiner
July 8, 2013
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F�a��l�Tir&
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2.4,,i, 1 ,y i AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS
a `✓ 302 WEST WASHINGTON STREET
,1 ROOM E418
INDIANAPOLIS,INDIANA 46204-2769
Telephone: (317)232-2513
Fax:(317)232-4711
Web Site: www.in.gov/sboa
INDEPENDENT AUDITOR'S 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, 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, the financial statement of the City of Carmel (City), which
comprises the financial position and results of operations for the year ended December 31, 2012, and the
related notes to the financial statement, and have issued our report thereon dated July 8, 2013, wherein we
noted the City followed accounting practices the Indiana State Board of Accounts prescribes rather than ac-
counting principles generally accepted in the United States of America.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statement,we considered the City's internal con-
trol over financial reporting(internal control)to determine the audit procedures that are appropriate in the cir-
cumstances 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. Accordingly,we do not express an
opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow man-
agement 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 finan-
cial statement will not be prevented or detected and corrected on a timely basis. A significant deficiency is a
deficiency or combination of deficiencies in internal control that is less severe than a material weakness,yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material weak-
nesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficien-
cies in internal control that we consider to be material weaknesses. However, material weaknesses may exist
that have not been identified.
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INDEPENDENT AUDITOR'S 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
(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.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compli-
ance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal
control or on compliance. This report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City's internal control and compliance. Accordingly,this communication
is not suitable for any other purpose.
Bruce Hartman
State Examiner
July 8, 2013
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(This page intentionally left blank.)
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FINANCIAL STATEMENT
The financial statement and accompanying notes were approved by management of the City. The
financial statement and notes are presented as intended by the City.
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CITY OF CARMEL
STATEMENT OF RECEIPTS,DISBURSEMENTS,AD CASH AND INVESTMENT BALANCES-
REGULATORY BASIS
For The Year Ended December 31,2012
Cash and Cash and
Investments Investments
Fund 01-01-12 Receipts Disbursements 12-31-12
General $ 2,827,699 $ 69,052,706 $ 69,425,473 $ 2,454,932
Motor Vehicle Highway 1,058,149 12,679,959 11,032,968 2,705,140
Local Road And Street 1,962,157 1,090,634 995,442 2,057,349
Throughfare Fund 729,508 454,268 700,000 483,776
Economic Fund 53,312 10,040 25,000 38,352
Housing Authority 58,537 53 - 58,590
User Fee Fund 97,390 101,462 72,947 125,905
Clerk's Record Perpetuation 79,555 23,273 7,615 95,213
Deferral Fund 532,918 71,978 45,176 559,720
Rainy Day 6,457,569 2,505,752 - 8,963,321
Hazardous Material Response Fund 7,529 7 - 7,536
Cumulative Captial Development 2,260,872 1,591,680 836,908 3,015,644
Parks Capital 688,643 623 - 689,266
Cumulative Capital Improvement 568,363 324,736 166,006 727,093
Police Pension Fund 3,860,899 535,959 2,012,253 2,384,605
Fire Pension Fund 4,794,304 600,279 2,666,007 2,728,576
Judicial Salary Fees 38,810 51,585 - 90,395
Illinois St Construction Fund - 700,178 - 700,178
Drug Task Force 618,521 190,817 220,922 588,416
Fire Gift Fund 16,362 17,484 28,120 5,726
Parks Gift Fund 53,588 2,590 6,462 49,716
Ambulance Fund 531,604 954,720 785,760 700,564
Grant Fund 547,199 176,874 149,577 574,496
Police Gift 35,115 18,438 14,753 38,800
DnrlTree City 50,178 45 - 50,223
Court Interperter Fund 4,955 54 1,580 3,429
Community Relations Gift Fund 3,241 21,275 5,169 19,347
Public Defenders Fund 1,799 501 1,272 1,028
Redevelopment Commission 23,305 15 8,966 14,354
Crc Regions Account 5,724,398 26,450,853 28,567,401 3,607,850
Carmel City Court 175,114 2,202,939 1,740,792 637,261
Parks Program Fund 734,778 3,429,577 2,990,369 1,173,986
Parks Monon Fund 941,659 5,093,712 4,526,040 1,509,331
Lease Rental Fund 3,830 4 - 3,834
2004 Road Bond 14,852 963,336 978,187 1
Cumulative Capital Sewer 1,237,586 307,110 632,347 912,349
Park Impact Fee Fund 1,094,775 964,481 154,050 1,905,206
Barrett Law Fund 6 - - 6
Civic Square Construction Fund 595 1 - 596
Old Town/126Th Street 457 - - 457
Keystone Ave Fund 6,298,527 2,954 3,397,742 2,903,739
Health Insurance Fund 3,771,412 12,281,236 12,674,973 3,377,675
Workers Comp Fund 76,210 445,113 485,153 36,170
Support For The Arts 4,846 1,325,548 1,210,538 119,856
Payroll Fund 738,550 45,065,375 45,526,779 277,146
Barrett Law Surplus 165,457 150 162 165,445
Sewage Works Revenue Bonds - 18,975,493 10,872,136 8,103,357
Sewer Operating 113,599 7,640,003 7,688,443 65,159
Sewer Depreciating - 91,843 91,842 1
Sewer Connection Fund 11,408 201,081 206,754 5,735
Sewer Availability Fund - 202,963 197,598 5,365
Sewer Loan Srf - - - -
Wastewater Bond&Interest At Bony 1,526,236 2,157,607 1,233,208 2,450,635
Water Construction - 14,234,033 14,234,033 -
Water Operating 37,329 26,439,455 26,254,487 222,297
Water Bond&Interest 1,072,280 73,860 - 1,146,140
Water Depreciation - 234,814 234,812 2
Hydrant Meter Deposit Fund 35,990 2,175 1,200 36,965
Water Connection 174,951 2,533,069 2,691,411 16,609
Water Availability 44,480 1,543,046 1,587,525 1
Water Sinking Fund 727,356 4,703,172 4,508,063 922,465
Wells Fargo Water Constr 73,801 - 73,801 -
Totals $ 52,762,563 $ 268,742,988 $ 261,968,222 $ 59,537,329
The notes to the financial statement are an integral part of this statement.
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CITY OF CARMEL
NOTES TO FINANCIAL STATEMENT
Note 1. Summary of Significant Accounting Policies
A. Reporting 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 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
income 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
jurisdiction 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,
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CITY OF CARMEL
NOTES TO FINANCIAL STATEMENT
(Continued)
local road and street distribution received from the state, financial institution tax received
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.
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 ag-
gregate disbursements 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.
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CITY OF CARMEL
NOTES TO FINANCIAL STATEMENT
(Continued)
Utility operating expenses which include all outflows for operating the utilities.
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 pro-
vided 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 preced-
ing year's March 1 (lien date)assessed valuations adjusted for various tax credits. Taxable prop-
erty 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.
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CITY OF CARMEL
NOTES TO FINANCIAL STATEMENT
(Continued)
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.
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 destruc-
tion 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.
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 retire-
ment benefits to plan members and beneficiaries. All full-time employees are eligible to partici-
pate 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 pen-
sion provided by employer contributions plus an annuity provided by the member's annuity sav-
ings 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 finan-
cial statements and required supplementary information for the plan as a whole and for its par-
ticipants. That report may be obtained by contacting:
Indiana Public Retirement System
1 North Capital Street, Suite 001
•
Indianapolis, IN 46204
Ph. (888) 526-1687
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CITY OF CARMEL
NOTES TO FINANCIAL STATEMENT
(Continued)
Funding Policy and Annual Pension Cost
The contribution requirements of the plan members for PERF are established by the Board of
Trustees of INPRS.
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 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 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.
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CITY OF CARMEL
NOTES TO FINANCIAL STATEMENT
(Continued)
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.
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 additional pension plans unique to the City. Information regarding
these plans may be obtained from the City.
-16-
SUPPLEMENTARY INFORMATION —UNAUDITED
For additional financial information, the City's Annual Report information can be found on the
Gateway website: httbs://gateway.ifionline.org/.
Differences may be noted between the financial information presented in the financial statement con-
tained 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.
-17-
CITY OF CARMEL
COMBINING SCHEDULE OF RECEIPTS,DISBURSEMENTS,AND
CASH AND INVESTMENT BALANCES-REGULATORY BASIS
For The Year Ended December 31,2012
Local
Motor Road User
Vehicle And Throughfare Economic Housing Fee
General Highway Street Fund Fund Authority Fund
Cash and investments-beginning 5 2,827,999 $ 1,058,149 $ 1,962,157 S 729,508 S 53312 5 58,537 S 97,390
Receipts:
Taxes 30,942,582 5,939,039 - - - - -
Licenses and permits 2,156,934 - - - - - 55,088
Intergovernmental 29,914,466 2661,870 1,088,702 - - - -
Chargesforservices 1,073,800 - - - - - -
Fines and forfeits 641,396 - - - - - 45,864
Utility fees - - - - - - -
Other receipts 4,323,528 4,079,050 1,932 454,268 - 10,040 53 510
Total receipts _ 69,052,706 12,679,959 1,090,634 454,268 10,040 53 - 101,462
Disbursements,
Personal services 43,600,756 5,151,309 - - - - -
Supplies 1,162,716 909,017 - - - - -
Other services and charges 8,083,412 4,670,819 358,487 - - - 64,739
Debt service-principal and interest 10,562,752 - - - - - -
Capital outlay 374,022 301,823 636,955 - - - -
Utility operating expenses - - - - - - -
Other disbursements 5,641,815 - - 700,000 25,000 - 8,208
Total disbursements 69,425,473 11,032,968 995,442 709000 25,000 - 72,947
Excess(deficiency)of receipts over
disbursements (372,767) 1,646,991 95,192 (245,732) (14,960) 53 28,515
Cash and investments-ending $ 2,454,932 $ 2,705,140 $ 2,057,349 $ 483,776 $ 38,352 $ 58,590 $ 125,905
-18-
CITY OF CARMEL
COMBINING SCHEDULE OF RECEIPTS,DISBURSEMENTS,AND
CASH AND INVESTMENT BALANCES-REGULATORY BASIS
For The Year Ended December 31,2912
(Continued)
Hazardous
Clerk's Material Cumulative Cumulative
Record Deferral Rainy Response Captial Parks Capital
Perpetuation Fund Day Fund Development Capital Improvement
Cash and investments-beginning $ 79,555 $ 532,918 $ 6,457,569 5 7,529 $ 2,260,872 $ 688,643 $ 568,363
Receipts:
Taxes - - - - 1,451,765 - -
Licenses and permits - - - - - - -
Intergovernmental - - 2,500,000 - 137,711 - 324,208
Charges for services 23,195 - - - - - -
Fines and forfeits - 71,483 - - - - -
Utility fees - - - - - - -
Other receipts 78 495 5,752 7 2,204 623 528
Total receipts 23,273 71,978 2,505,752 7 1,591,680 623 324,736
Disbursements:
Personal services - 16,031 - - - - -
Supplies - 4,792 - - 15,885 - -
Other
services and charges 1,850 17,146 - - 521,020 - 51,833
Debt service-principal and interest - - - - - - -
Capital outlay 5,765 7,207 - - 300,003 - 114,173
Utility operating expenses - - - - - - -
Other disbursements - - - - - -
Total disbursements 7,615 45,176 - - 836,908 - 166,006
Excess(deficiency)of receipts over
disbursements 15,658 26,802 2,505,752 7 754,772 623 158,730
Cash and investments-ending $ 95,213 $ 559,720 $ 8,963,321 $ 7,536 $ 3,015,644 $ 689,266 $ 727,093
-19-
CITY OF CARMEL
COMBINING SCHEDULE OF RECEIPTS,DISBURSEMENTS,AND
CASH AND INVESTMENT BALANCES-REGULATORY BASIS
For The Year Ended December 31 2012
•
(Continued)
Illinois
Police Fire Judicial St Drug Fire Parks
Pension Pension Salary Construction Task Gift Gift
Fund Fund Fees Fund Force Fund Fund
Cash and investments-beginning S 3,860,899 $ 4,794 304 $ 38,810 $ - $ 618,521 $ 16,362 $ 53,588
Receipts
Taxes - - - - - - -
Licenses and permits - - - - - - -
Intergovernmental 535,959 600,279 - - 75,000 - -
Charges for services - - - - - - -
Fines and forfeits - - 51,530 - - - -
Utility fees - - - - - - -
Other receipts - - 55 700,178 115,817 17,484 2,590
Total receipts 535,959 600,279 51,585 700,178 190,817 17,484 2,590
Disbursements:
Personal services 1,700 2,587 - - - - -
Supplies - - - - 2,686 - -
Other services and charges 100 100 - - 149,586 - -
Debt service-principal and interest - - - - - - -
Capital outlay - - - - 66,650 - -
Utility operating expenses - - - - - - -
Other disbursements 2,010,453 2,683,320 - - - 28,120 6,462
Total disbursements 2,012,253 2,666,007 - - 220,922 28,120 6,462
Excess(deficiency)of receipts over
disbursements (1,476,294) (2,065,728) 51,585 700,178 (30,105) (10,636) (3,872)
Cash and investments-ending $ 2,384,605 $ 2,728,576 $ 90,395 $ 700,178 S 588,416 5 5,726 $ 49,716
-20-
CITY OF CARMEL
COMBINING SCHEDULE OF RECEIPTS,DISBURSEMENTS,AND
CASH AND INVESTMENT BALANCES-REGULATORY BASIS
For The Year Ended December 31,2012
(Continued)
Community
Court Relations Public
Ambulance Grant Police Dnrtlree Interperter Gift Defenders
Fund Fund Gift City Fund Fund Fund
Cash and investments-beginning $ 531,604 5 547,199 $ 35,115 $ 50,178 $ 4,955 S 3,241 $ 1,799
Receipts:
Taxes - - - - - - -
Licenses and permits - - - - - - -
Intergovernmental - 168,849 - - - - -
Charges for services 954,198 - - - - - -
Fines and forfeits - - - - 50 - 500
Utility fees - - - - - - -
Other receipts 522 8,025 18,438 45 4 21,275 1
Total receipts 954,720 176,874 18,438 45 54 21,275 501
Disbursements
Personal services - - - - - - -
Supplies 57,187 - - - - - -
Other services and charges 23,756 105,604 - - 1,580 - 1,272
Debt service-principal and interest - - - - - - -
Capital outlay 699,984 - - - - - -
Utility operating expenses - - - - - - -
Other disbursements 4,833 43,973 14,753 - - 5,169 -
Total disbursements 785,760 149,577 14,753 - 1,580 5,169 1,272
Excess(deficiency)of receipts over
disbursements 168,960 27,297 3,685 45 (1,526) 16,106 (771)
Cash and investments-ending $ 700,564 S 574,496 $ 38,800 $ 50.223 $ 3,429 $ 19,347 $ 1,028
-21-
•
CITY OF CARMEL
COMBINING SCHEDULE OF RECEIPTS,DISBURSEMENTS,AND
CASH AND INVESTMENT BALANCES-REGULATORY BASIS
For The Year Ended December 31,2012
(Continued)
Crc Carmel Parks Parks Lease 2004
Redevelopment Regions City Program Moron Rental Road
Commission Account Court Fund Fund Fund Bond
Cash and investments-beginning $ 23,305 $ 5,724,398 $ 175,114 $ 734,775 $ 941,659 $ 3,830 S 14,852
Receipts:
Taxes - 17,056,518 - - 20,246 - 879,858
Licenses and permits - - - - - - -
Intergovernmental - - - - - - 83,461
Charges for services - - - 3,387,840 4,991,732 - -
Fines and forfeits - - 2,202,939 - - - -
Utility tees - - - - - - -
Other receipts 15 9,394,335 - 41,737 81,734 4 17
Total receipts 15 26,450,853 2,202,939 3,429,577 5,093,712 4 963,336
Disbursements.
Personal services - - - 2,236,778 2,053,247 - -
Supplies - 1,533 - 250,164 422,217 - -
Other services and charges 3,171 4,996,089 - 503,248 2,020,490 - -
Debt service-principal and interest - 18,008,081 - - - - 978,187
Capital outlay - 4,221,743 - 179 15,086 - -
Utility operating expenses - - - - - -Other disbursements 5,795 1,339,955 1,740,792 - 15,000 - -
Total disbursements 8,966 28.567,401 1,740,792 2,990,369 4,526,040 - 978,187
Excess(deficiency)of receipts over
disbursements (8,951) (2,116,548) 462,147 439,208 567,672 4 (14,851)
Cash and investments-ending $ 14,354 $ 3,607,850 $ 637,261 S 1,173,986 $ 1,509,331 $ 3,834 $ 1
-22-
CITY OF CARMEL
COMBINING SCHEDULE OF RECEIPTS,DISBURSEMENTS,AND
CASH AND INVESTMENT BALANCES-REGULATORY BASIS
For The Year Ended December 31,2012
(Continued)
Park Civic
Cumulative Impact Barrett Square Old Keystone Health
Capital Fee Law Construction Town/126Th Ave Insurance
Sewer Fund Fund Fund Street Fund Fund
Cash and investments-beginning $ 1,237,586 S 1,094,775 $ 6 $ 595 $ 457 $ 6,298,527 $ 3,771,412
Receipts:
Taxes - - - - - - -
Licenses and permits - 963,236 - - - - -
Intergovernmental 306,180 - - - - - -
Charges for services - - - - - -
Fines and forfeits - - - - - - -
Utility fees - - - - - - -
Other receipts 930 1,245 - 1 - 2,954 12,281,236
Total receipts 307,110 964481 - 1 - 2,954 12,281,236
Disbursements:
Personal services - - - - - - -
Supplies 6,067 - - - - 2,325 -
Other services and charges 9,150 - - - - 37,049 -
Debt service-principal and interest - - - - - -Capital outlay 617,130 - - - - 1,858,368 -
Utility operating expenses - - - - - -
Other disbursements - 154,050 - - - 1,500,000 12,674,973
Total disbursements 632,347 154,050 - - 3,397,742 12,674,973
Excess(deficiency)of receipts over
disbursements (325,237) 810,431 - 1 - (3.394,788) (393,737)
Cash and investments-ending $ 912,349 S 1,905,206 $ 6 $ 596 $ 457 $ 2,903,739 $ 3,377,675
-23-
CITY OF CARMEL
COMBINING SCHEDULE OF RECEIPTS,DISBURSEMENTS,AND
CASH AND INVESTMENT BALANCES-REGULATORY BASIS
For The Year Ended December 31,2012
(Continued)
Support Sewage
Workers For Barrett Works
Comp The Payroll Law Revenue Sewer Sewer
Fund Arts Fund Surplus Bonds Operating Depreciating_
Cash and investments-beginning $ 76,210 $ 4,846 $ 738,550 $ 165,457 $ - $ 113,599 $ -
Receipts:
Taxes - - - - - -
Licenses and permits - - - - - - -
Intergovernmental - - - - - - -
Charges for services - - - - - -
Fines and forfeits - - - - - - -
Utility fees - - - - - 1,814,183
Other receipts 445,113 1,325,548 45,365,375 150 18,975,493 5,825,820 91,843
Total receipts 445,113 1,325,548 45,065,375 150 18,975,493 7,640,003 91,843
Disbursements:
Personal services - - - - - - -
Supplies - - - - - - -
Other services and charges - 1,210,538 - - - - -
Debt service-principal and interest - - - - - - -
Capital outlay - - - - 10,056,461 - 91,842
Utility operating expenses - - - - - 6,053,737
Other disbursements 485,153 - 45,526,779 152 815,675 1,634,706 -
Total disbursements 485,153 1,210,538 45,526,779 162 10,872,136 7,688,443 91,842
Excess(deficiency)of receipts over
disbursements (40,040) 115,010 (461,404) (12) 8,103,357 (48,440) 1
Cash and investments-ending $ 36,170 $ 119,856 $ 277,146 $ 165,445 $ 8,103,357 $ 65,159 $ 1
•
-24-
CITY OF CARMEL
COMBINING SCHEDULE OF RECEIPTS,DISBURSEMENTS,AND
CASH AND INVESTMENT BALANCES-REGULATORY BASIS
For The Year Ended December 31,2012
(Continued)
Wastewater
Bond Water
Sewer Sewer Sewer & Bond
Connection Availability Loan Interest Water Water &
Fund Fund Sri At Bony Construction Operating Interest
Cash and investments-beginning $ 11,408 $ - $ - S 1,526,236 $ - S 37,329 $ 1,072,280
Receipts:
Taxes - - - - - - -
Licenses and permits - - - - - - -
Intergovernmental - - - - - - -
Charges for services - - - - - -
Fines and forfeits - - - - - - -
Utility fees 199,502 202,960 - - - 25,876,659 -
Other receipts 1,579 3 - 2,157,607 14,234,033 562,796 73,860
Total receipts 201,081 202,963 - 2,157,607 14,234 033 26,439,455 73,860
Disbursements.
Personal services - - - - - - -
Supplies - - - - - - -
Other services and charges - - - - - - -
Debt service-principal and interest - - - - - - -
Capital outlay 35,593 147,598 - - 14,234,033 - -
Utility operating expenses - - - - - 14,218,865 -
Other disbursements 171,161 50,000 - 1,233,208 - 12,035,622 -
Total disbursements 206,754 197,598 - 1,233,208 14,234,033 26,254,487 -
Excess(deficiency)of receipts over
disbursements (5,673) 5,365 - 924,399 - 184,968 73,860
Cash and investments-ending $ 5,735 $ 5,365 $ - $ 2,450,635 $ - $ 222,297 $ 1,146,140
-25-
CITY OF CARMEL
COMBINING SCHEDULE OF RECEIPTS,DISBURSEMENTS,AND
CASH AND INVESTMENT BALANCES-REGULATORY BASIS
For The Year Ended December 31,2012
(Continued)
Hydrant Wells
Meter Water Fargo
Water Deposit Water Water Sinking Water
Depreciation Fund Connection Availability Fund Constr Totals
Cash and investments-beginning $ - $ 35,990 $ 174,951 $ 44,480 $ 727,356 $ 73,801 $ 52,762,563
Receipts:
Taxes - - - - - - 56,290,008
Licenses and permits - - - - - - 3,175,258
Intergovernmental - - - - - - 38,396,685
Charges for services - - - - - - 10,430,765
Fines and forfeits - - - - - - 3,013,762
Utility fees - 1,575 2,184,203 232,907 - - 301511,989
Other receipts 234,814 600 348,866 1,310,139 4,703,172 - 126,924,521
Total receipts 234,814 2,175 2,533,069 1,543,046 4,703,172 - 268,742,988
Disbursements:
Personal services - - - - - - 53,062,408
Supplies - - - - - - 2,834,589
Other services and charges - - - - - - 22,831,039
Debt service-principal and interest - - - - - - 29,549,020
Capital outlay 213,109 - 2,600,602 1,587,525 - 73,801 38,261,652
Utility operating expenses - 600 - - - - 20,273,202
Other disbursements 21,703 600 90,809 - 4,508,063 - 95,156,312
Total disbursements 234,812 1,200 2,691,411 1,587,525 4,508,063 73,801 261,968,222
Excess(deficiency)of receipts over
disbursements 2 975 (158,342) (44,479) 195,109 (73,801) 6,774,766
Cash and investments-ending $ 2 5 36,965 $ 16,609 5 1 $ 922,465 $ - 5 59,537,329
-26-
CITY OF CARMEL
SCHEDULE OF PAYABLES AND RECEIVABLES
December 31,2012
Accounts Accounts
Government or Enterprise Payable Receivable
Governmental activities $ 735,494 S -
Wastewater 274,525 2,038,984
Water 873,704 1,770,297
Totals $ 1,883,724 $ 3,809,281
-27-
CITY OF CARMEL
SCHEDULE OF LEASES AND DEBT
December 31,2012
Annual Lease Lease
Lease Beginning Ending
Lessor Purpose Payment Data Date
Governmental activities:
2005 Carmel Police and Fire Department Mobile Command Vehicle $ 88,424 05-24-05 08-01-15
2008 Fire Department Turn out gear 57,421 12-01-08 12-01-12
2008 Police and Fire Vehicles Purchase Police Vehicles and Fire Durangos 60,180 07-22-08 12-01-12
2009 Engineering-schedule 1 Purchase Excapes and F150 16,744 03-01-10 09-01-13
2009 Golf Course(schedule 2)PNC Golf equipment 39,438 09-01-09 03-01-15
2009 Golf Course-schedule 2-Huntington Commercial irrigation pump 31,700 03-01-10 09-01-14
2009 Police Vehicles-PNC Bank Purchase vehicles 181,379 09-01-09 03-01-13
2010 DOCS Equipment-schedule 6 Purchase Ford F-150s 15,180 09-01-10 09-01-14
2010 Fire department-schedule 5 Purchase Ambulance 37,050 10-01-10 34-01-15
2010 Fire department-schedule 7 Purchase Fire Trucks 143,048 02-15-11 08-15-20
2010 Golf Course-schedule 4 Irrigation system 139,150 10-01-10 10-01-17
2010 Police department-schedule 3 Purchase police cars 233,492 05-15-10 11-15-13
2011 Police department-schedule 8 Purchase police cars 202,974 04-15-11 10-16-14
2012 Fire (schedule 11 Life Pacs) 15 Monitor/Defib CPR and accessories 44,205 09-15-12 03-15-17
2012 Fire(schedule 10) 2 Ambulances 40,020 11-01-12 05-01-17
2012 Fire Equipment(schedule 12) Radios chargers batteries 23,535 09-15-12 03-15-17
2012 Police department-schedule 9 Purchase police cars 198,496 05-12-12 11-15-15
Total governmental activities 1,522,436
Total of annual lease payments $ 1,522,436
Principal and
Ending Interest Due
Description of Debt Principal Within One
Type Purpose Balance Year
Governmental activities:
Revenue bonds 1998 Merchants Square TIF $ 1,470,000 $ 276,600
Revenue bonds Redevelopment District Tax Increment Revenue Bonds Series 2004 A
(Clarian Hospital)Illinois Street Project 7,045,000 911,177
Revenue bonds Carmel Redevelopment District Taxable County Option Income Tax Revenue Refunding
Bonds Series 2006(1998 City Center refunded in 2005) 4,895,000 966,374
Revenue bonds 2001 Merchants Pointe-Developer backed 715,000 78,721
Revenue bonds 2003 Parkwood East 2,790,000 391,063
Revenue bonds 2006 Parkwood West 4,070,000 404,808
Revenue bonds 2005 Performing Arts Center 73,847,076 5,490,000
Revenue bonds Carmel Redevelopment District Certificates of Participation Series 20100 15,130,000 1,366,169
Revenue bonds City of Carmel(IN)Redevelopment Authority County Option Income Tax.
Lease Rental Revenue Refunding Bonds of 2004 11,885,000 2,667,000
Revenue bonds City of Carmel Redevelopment Authority County Option Income Tax
Lease Rental Revenue Bonds Series 2006 61,240,000 5,981,000
Revenue bonds City of Carmel(IN)Redevelopment Authority County Option Income Tax
Lease Rental Revenue Bonds of 2010 25,675,000 1,231,000
Revenue bonds City of Carmel(Indiana)Redevelopment Authority Lease Rental
Revenue bonds Revenue Refunding Bonds of 2011 25,190,000 2,611,500
Revenue bonds County Option Income Tax Revenue Refunding Bonds of 2011(Street department) 6785,000 773,816
Revenue bonds 2012 A3.20126 Lease Rental Multipurpose 185,145,000 3,430,000
Total governmental activities 426,882,076 26,579,228
Wastewater:
Revenue bonds 2012 Wastewater Revenue 11,040,000 297,675
Revenue bonds 2005 Wastewater Plant Expansion 8,590,000 817,591
Revenue bonds 2009 Wastewater Expansion 5,182,746 298,972
Total Wastewater 24,812,746 1,414,238
Water:
Revenue bonds 2008 Plant Expansion Coupon Bonds 62,790,000 3,429,538
Revenue bonds 2008 Plant Expansion Cap Appreciation Bands 26,273,075 -
Revenue bonds 2012 Jr Waterworks Rev Bonds 21,455,000 1,429,850
Notes and loans payable IWC Lines 16,829,948 2,700,000
Total Water 127,348,023 7,559,388
Totals $ 579,042,845 5 35,552,854
-28-
CITY OF CARMEL
SCHEDULE OF CAPITAL ASSETS
December 31,2012
Capital assets are reported at actual or estimated historical cost based on appraisals or
deflated current replacement cost. Contributed or donated assets are reported at estimated
fair value at the time received.
Ending
Balance
Governmental activities:
Land 5 25,852,398
Infrastructure 377,902,881
Buildings 62,847,895
Improvements other than buildings 7,802,312
Machinery,equipment,and vehicles 70,650,207
Construction in progress 82,682,638
Books and other 118,385,925
Total governmental activities 746,124,256
Wastewater:
Land 117,691
Infra structure 46,785,347
Buildings 36,767,655
Machinery,equipment,and vehicles 10,556,341
Construction in progress 4,106,923
Total Wastewater 98,333,957
Water:
Land 2,496,299
Infrastructure 141,186,325
Buildings 23,962,839
Machinery,equipment,and vehicles 8,439,061
Construction in progress 27,381,789
Total Water 203,466,313
Total capital assets $ 1,047,924,526
-29-
(This page intentionally left blank.)
-30-
SUPPLEMENTAL AUDIT OF
FEDERAL AWARDS
-31-
•
44 s" STATE OF INDIANA
� , AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS
4TY o 302 WEST WASHINGTON STREET
ROOM E418
INDIANAPOLIS,INDIANA 46204-2769
Telephone:(317)232-2513
Fax: (317)232-4711
Web Site: www.in.gov/sboa
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
TO: THE OFFICIALS OF THE CITY OF CARMEL, HAMILTON COUNTY, INDIANA
Report on Compliance for Each Major Federal Program
We have audited the City of Carmel's(City)compliance with the types of compliance requirements
described in the U.S. Office of Management and Budget(OMB)CircularA-133 Compliance Supplement that
could have a direct and material effect on its major federal program for the year ended December 31, 2012.
The City's major federal program is identified in the Summary of Auditor's Results section of the accompany-
ing Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations,contracts,and
grants applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal pro-
grams based on our audit of the types of compliance requirements referred to above. 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 require-
ments 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 circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion,the City complied, in all material respects,with the types of compliance requirements
referred to above that could have a direct and material effect on its major federal program for the year ended
December 31, 2012.
-32-
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
(Continued)
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with types of compliance requirements referred to above. In planning and performing our audit of
compliance,we considered the City's internal control over compliance with the type of requirements that could
have a direct and material effect on each major federal program to determine the auditing procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major
federal program and to test and report on internal 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 compli-
ance. Accordingly,we do not express an opinion on the effectiveness of the City's internal control over com-
pliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance 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 com-
bination 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. A significant deficiency in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control over com-
pliance, yet important enough to merit attention by those charged with governance.
Our consideration of 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 compliance
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of OMB
Circular A-133. Accordingly, this report is not suitable for any other purpose.
Bruce Hartman
State Examiner
July 8, 2013
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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The Schedule of Expenditures of Federal Awards and accompanying notes presented were prepared
by management of the City. The schedule and notes are presented as intended by the City.
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•
•
CITY OF CARMEL
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For The Year Ended December 31,2012
Pass-Through
Federal Entity(or Other) Total
Federal Grantor Agency CFDA Identifying Federal Awards
Cluster Title/Program Title/Project Title Pass-Through Entity or Direct Grant Number Number Expended
Department of Housing and Urban Development
CDBG-Entitlement Grants Cluster •
Community Development Block Grants/Entitlement Grants Hamilton County 14.218
126th 8,Auman Neighborhood Improvements HC-CDBG 10-7 5 420,353
Total-CDBG-Entitlement Grants Cluster 420,353
Total-Department of Housing and Urban Development 420,353
Department of Justice
Bulletproof Vest Partnership Program Direct grant 16.607
Bullet Proof Vests 2012 6,765
Total-Department of Justice 6,765
Department of Transportation
Highway Safety Cluster
State and Community Highway Safety Hamilton County 20 600
Dangerous Driving 2012 3,182
Operation Pull Over 10/1/2011-9130/2012 2011-2012 13,669
Total-State and Community Highway Safety 17,051
Alcohol Impaired Driving Countermeasures Incentive Grants I Hamilton County 20.601
DUI Task Force Enforcement Program 10/1111-10/302012 2011-2012 9,244
Total-Highway Safety Cluster 26,295
Total-Department of Transportation 26,295
Department of Energy
ARRA-Energy Efficiency and Conservation Block Grant Program(EECBG) Direct grant 81.128
Retro/Refit of Metal Halide and High Pressure Sodium Street Lights to LED Street Ligths DE-SC0002071 95,919
Total-Department of Energy 95,919
Total federal awards expended S 549,332
The accompanying note is an integral part of the Schedule of Expenditures of Federal Awards.
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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.
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CITY OF CARMEL
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Section 1— Summary of Auditor's Results
Financial Statement:
Type of auditors report issued: Adverse as to GAAP;
Unmodified as to Regulatory Basis
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 program:
Material weaknesses identified? no
Significant deficiencies identified? none reported
Type of auditor's report issued on compliance for
major program: Unmodified
Any audit findings disclosed that are required to be reported
in accordance with section 510(a) of OMB Circular A-133? no
Identification of Major Program:
Name of Federal Program or Cluster
CDBG - Entitlement Grants Cluster
Dollar threshold used to distinguish between Type A and Type B programs: $300,000
Auditee qualified as low-risk auditee? no
Section II—Financial Statement Findings
No matters are reportable.
Section III—Federal Award Findings and Questioned Costs
No matters are reportable.
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CITY OF CARMEL
EXIT CONFERENCE
The contents of this report were discussed on August 1,2013,with Diana Cordray, Clerk-Treasurer,
and on August 7, 2013, with James Brainard, Mayor. Our report disclosed no material items that warrant
comment at this time.
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