Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,2004
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City of Burlington, Iowa Comprehensive Annual Financial Report For the Year Ended June 30,2005 City of Burlington, lowa Comprehensive Annual Financial Report For the Year Ended June 30,2005 Submitted By: Department of Finance and Accounting City of Burlington, lowa Cover art work compliments of Mayor Pro Tem William Ell Certificate of Achievement for Excellence in Financial Reporting Presented to City of Burlington, lowa For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual 6nancial reports (CAFRs)achieve the highest standards in government accounting and fmancial reporting. President v Executive Director CITY OF BURLINGTON. IOWA Comprehensive Annual Financial Report For the Year Ended June 30. 2005 TABLE OF CONTENTS INTRODUCTORY SECTION Table of Contents................................................................................... Letter of Transmittal ................................................................................ City Organizational Chart .......................................................................... List of Principal Officials ......................................................................... M~ss~on. and Vision Statements.................................................................. FINANCIAL SECTION Independent Auditor's Report.................................................................... Management's Discussion and Analysis ........................................................ Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ................................................................... Statement of Activities....................................................................... Fund Financial Statements: Balance Sheet - Governmental Funds .................................................. Reconciliation of the Balance Sheet to the Statement of Net Assets ........... Statement of Revenues. Expenditures. and Changes in Fund Balances (Deficits) - Governmental Funds....................................................... Reconciliation of the Statement of Revenues. Expenditures. and Changes in Fund Balances (Deficits) to the Statement of Activities ........................ Statement of Net Assets .Proprietary Funds ........................................ Statement of Revenues. Expenses. and Changes in Net Assets - Proprietary Funds .......................................................................... Statement of Cash Flows .Proprietary Funds ........................................ Notes to Financial Statements.............................................................. Required Supplementary Information: Budgetary Comparison Schedule of Receipts. Disbursements and Change in Fund Balances. Budget and Actual. Governmental and Proprietary Funds .............. ..... ................................................... Budget to GAAP Reconciliation ......................................................... Notes to Required Supplementary Information.................................... Combining and Individual Fund Statements: Combining Balance Sheet .Nonmajor Governmental Funds................... Combining Statement of Revenues. Expenditures. and Changes in Fund Balances (Deficits) .Nonmajor Governmental Funds ............... .... ....... Combining Statement of Net Assets .Internal Service Funds .................... Combining Statement of Revenues. Expenses. and Changes in Net Assets . Internal Service Funds ..................................................................... Combining Statement of Cash Flows - Internal Service Funds ................... STATISTICAL SECTION Government-wide information: Government-wide Expenses by Function................................................... Government-wide Revenues by Source ..................................................... Fund Information: General Governmental Expenditures by Program........................................ General Governmental Revenues by Source .............................................. Property Tax Levies and Collections ......................................................... Property Tax Rates -All Direct and Overlapping Governments....................... Ratio of Net General Obligation Bonded Debt to Taxable Valuation and Net Bonded Debt Per Capita............................................................ Actual and Taxable Valuation .................................................................. Enterprise Activity Operating Revenues..................................................... Computation of Legal Debt Margin............................................................ Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds ................................................................................ Principal Taxpayers ............................................................................... Major Area Employers ............................................................................ Historical Economic Data........................................................................ Miscellaneous Statistical Data.................................................................. Principal Officials - Salaries and Length of Service........................................ Insurance Schedule................................................................................ Revenue bond coverage......................................................................... COMPLIANCE SECTION lndependent Auditor's Report on Compliance and on Internal Control over Financial Reporting based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................. lndependent Auditor's Report on Compliance with Requirements Applicable to its Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 ...................................................... Schedule of Expenditures of Federal Awards ................................................ Notes to Schedule of Expenditures of Federal Awards .................................... Schedule of Findings and Questioned Costs .................................................. I I r l City of rl I I ington i1 December 30,2005 i I i i To the Honorable Mayor, Members of the City Council, and Citizens of the CITY [I OF BURLINGTON, IOWA: [ 1 State law requires that all general purpose local governments publish within nine I months of the close of each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing 1.1 standards generally accepted in the United States of America by a firm of licensed certified public accountants or by the State Auditor's Office. Pursuant to that 1' 1 requirement, we hereby issue the comprehensive annual financial report of the City of Burlington, Iowa, for the fiscal year ended June 30,2005. F-i 1 1 This report consists of management's representations concerning the finances of the City of Burlington. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. 'i I 1 To provide a reasonable basis for making these representations, management of the City of Burlington has established a comprehensive internal control framework ! I that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Burlington's financial statements in conformity with GAAP. Because the cost of I internal controls should not outweigh their benefits, the City of Burlington's comprehensive framework of internal controls has been designed to provide 1 1 reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our I knowledge and belief, this financial report is complete and reliable in all material respects. , The City of Burlington's financial statements have been audited by Eide Bailly, . , LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City , , of Burlington for the fiscal year ended June 30, 2005, are free of material misstatement. The independent audit involved examining, on a test basis, City of Burlington 400 Washington C! Burlington, Iowa 52601 I evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an unqualified opinion that the City of Burlington's financial statements for the fiscal year ended June 30, 2005 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City of Burlington was part of a broader, federally mandated "Single Audit" designed