City of Southaven, Mississippi
Total Page：16
File Type：pdf, Size：1020Kb
CITY OF SOUTHAVEN, MISSISSIPPI ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2006 CITY OF SOUTHAVEN, MISSISSIPPI ANNUAL FINANCIAL REPORT Year Ended September 30, 2006 TABLE OF CONTENTS Independent Auditors' Report ................................................................................................................. 1 Management’s Discussion and Analysis................................................................................................. 3 Basic Financial Statements Statement of Net Assets...................................................................................................................... 11 Statement of Activities........................................................................................................................ 12 Balance Sheet – Governmental Funds ............................................................................................... 13 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets ............................................................................................................ 14 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................. 15 Reconciliation of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities.............................................................................................................. 16 Statement of Net Assets – Proprietary Funds .................................................................................... 17 Statement of Revenues, Expenses and Changes in Net Assets – Proprietary Funds ......................... 18 Statement of Cash Flows – Proprietary Funds.................................................................................. 19 Notes to Financial Statements ........................................................................................................... 20 Required Supplementary Information General Fund: Budgetary Comparison Schedule....................................................................................................... 34 Schedule of Federal Awards.............................................................................................................. 35 Schedule of Surety Bonds for Municipal Officials ............................................................................ 36 Additional Auditors’ Reports Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards........................................................ 37 Independent Auditors’ Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance with OMB Circular A-133 ............................................................................................... 38 Independent Auditors’ Report on the City’s Compliance with the Requirements of the State Audit Department, as Set Forth in the Municipal Compliance Questionnaire................................................................................................. 40 Schedule of Findings and Questioned Costs........................................................................................... 42 INDEPENDENT AUDITORS' REPORT Mayor and Board of Aldermen City of Southaven Southaven, Mississippi We have audited the accompanying financial statements of the governmental activities, the business type activities and each major fund of City of Southaven, Mississippi, as of and for the year ended September 30, 2006, which collectively comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Southaven’s management. Our responsibility is to express opinions on these financial statements 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 statements are free of material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects. The respective financial position of the governmental activities, the business-type activities and each major fund of the City of Southaven, Mississippi as of September 30, 2006, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated January 23, 2007 on our consideration of the City of Southaven, Mississippi’s internal control over financial reporting an on our tests of its compliance with certain provisions of laws, regulations, contracts ad grants agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting on 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. The management’s discussion and analysis and budgetary comparison information on pages 3 through 10 and 34 respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. -1- Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Southaven’s basic financial statements. The introductory section, combining and individual non-major fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations, and is also not a required part of the basic financial statement of City of Southaven, Mississippi. The combining and individual non-major fund financial statements and the schedule of expenditures of federal awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Williams, Pitts & Beard, PLLC Certified Public Accountants January 23, 2007 -2- CITY OF SOUTHAVEN MISSISSIPPI Management’s Analysis and Discussion FY 2006 THE CITY OF SOUTHAVEN, MISSISSIPPI CITY OFFICIALS MAYOR CHARLES G. “GREG” DAVIS ALDERMAN LORINE CADY, WARD 1 JAMES STARK, WARD 2 JIM LOFTIS, WARD 3 PAUL OLLAR, WARD 4 RICKY JOBES, WARD 5 RANDY HULING, MD WARD 6 GREG GUY, ALDERMAN-AT-LARGE CITY ADMINISTRATOR/CAO CHRIS WILSON CITY ACCOUNTANT ANDREA FREEZE CITY ATTORNEY MARK SORRELL CITY CLERK GLENDA SMALLWOOD DEPARTMENT HEADS POLICE CHIEF TOM LONG FIRE CHIEF MIKE BRACKIN OPERATIONS BRADLEY WALLACE PARKS AND RECREATION MIKE MULLINS PLANNING AND DEVELOPMENT WHITNEY CHOAT UTILITY CHRIS HADAWAY PUBLIC WORKS RAY TARRANCE ENGINEERING RON SMITH -4- he City of Southaven, Mississippi’s 90.3% of Southaven's population is T annual fiscal year operating budget considered white, 6.7% black and 2.3% represents the city’s financial Hispanic according to the Census 2000, commitments and plans to deliver a high which is the most current statistical level of service to the Southaven measures available. community. Southaven, Mississippi is a relatively The City of Southaven currently young community, with 33% of our maintains a strong bond rating (credit residents being between the ages of 25- rating) of Aaa as rated by Standard & 44. 9% of Southaven's population is age Poors. 65 and older. The median age of a Southaven resident is 33.1 years old, For the fiscal year 2006, Southaven, whereas the national median age is 35.3 Mississippi has an assessed value of years of age. $308,947,178, which represents an increase of some $25 million over FY Educational attainment