State of Indiana an Equal Opportunity Employer State Board of Accounts 302 West Washington Street Room E418 Indianapolis, Indiana 46204-2765
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STATE OF INDIANA AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS 302 WEST WASHINGTON STREET ROOM E418 INDIANAPOLIS, INDIANA 46204-2765 Telephone: (317) 232-2513 Fax: (317) 232-4711 Web Site: www.in.gov/sboa March 22, 2012 Board of Directors City of Indianapolis 200 E. Washington Street, Suite 2222 Indianapolis, IN 46204 We have reviewed the audit report prepared by KPMG, LLP, Independent Public Accountants, for the period January 1, 2009 to December 31, 2009. In our opinion, the audit report was prepared in accordance with the guidelines established by the State Board of Accounts. Per the Independent Public Accountants’ opinion, the financial statements included in the report present fairly the financial condition of the City of Indianapolis, as of December 31, 2009, and the results of its operations for the period then ended, on the basis of accounting described in the report. We call your attention to the thirty findings in the Single Audit Report, on pages 12 through 40. Thirteen of those findings represent deficiencies in internal control over financial reporting. Eight of those thirteen findings represent material weaknesses. The auditors have issued a qualified opinion on compliance with applicable requirements for three of the five major federal programs. The Independent Public Accountants’ report is filed with this letter in our office as a matter of public record. STATE BOARD OF ACCOUNTS COMPREHENSIVE ANNUAL FINANCIAL REPORT City of Indianapolis, Indiana (Component Unit of the Consolidated City of Indianapolis – Marion County) Year Ended December 31, 2009 Office of Finance and Management I II (This page intentionally left blank) TABLE OF CONTENTS Page(s) I. INTRODUCTORY SECTION Letter of Transmittal VII – XI Certificate of Achievement for Excellence in Financial Reporting XII Organization of Local Government and Taxing Districts Introduction XIII Form of Government XIII – XIV Other Governmental Units XIV – XV Maps XV – XVI Unigov Organizational Chart – Consolidated Government for Indianapolis – Marion County XVII City of Indianapolis Organization Chart XVIII Schedule of Elected and Appointed Officials XIX – XX Consolidated City Operations XXI – XXXI II. FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT 1 – 2 MANAGEMENT’S DISCUSSION AND ANALYSIS – REQUIRED SUPPLEMENTARY INFORMATION 3 – 15 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements: Statement of Net Assets 16 – 17 Statement of Activities 18 III IV TABLE OF CONTENTS (continued) Page(s) Fund Financial Statements: Balance Sheet – Governmental Funds 19 Reconciliation of the Balance Sheet for Governmental Funds to the Statement of Net Assets 20 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 21 – 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Statement of Net Assets – Proprietary Funds 24 – 25 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds 26 Statement of Cash Flows – Proprietary Funds 27 – 28 Statement of Fiduciary Net Assets – Fiduciary Funds 29 Statement of Changes in Fiduciary Net Assets – Fiduciary Funds 30 Notes to Financial Statements 31 – 95 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Information: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund – Budgetary Basis 96 Schedules of Funding Progress 97 Schedules of Employer Contributions 98 Schedule of Funding Progress (Postemployment Benefit Obligation) 99 Notes to Required Supplementary Information 100 – 102 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES – OTHER SUPPLEMENTARY INFORMATION Combining Balance Sheet – Nonmajor Governmental Funds by Fund Type 103 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds by Fund Type 104 Schedule of Sub-Fund Assets, Liabilities, and Fund Balance – General Fund 105 – 106 Schedule of Sub-Fund Revenues, Expenditures, and Changes in Fund Balance – General Fund 107 – 108 Schedule of Sub-Fund Revenues, Expenditures, and Changes in Fund Balance – General Fund – Budget and Actual – Budgetary Basis 109 – 111 Schedule of Expenditures by Character – General Fund – Budget and Actual – Budgetary Basis 112 – 117 Combining Balance Sheet – Nonmajor Special Revenue Funds 118 TABLE OF CONTENTS (continued) Page(s) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Special Revenue Funds 119 Combining Schedule of Revenues, Expenditures, and Changes in Unreserved Fund Balances – Special Revenue Funds – Budget and Actual – Budgetary Basis 120 Schedule of Expenditures by Character – Special Revenue Funds – Budget and Actual – Budgetary Basis 121 – 123 Combining Balance Sheet – Nonmajor Debt Service Funds 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Debt Service Funds 125 Combining Schedule of Revenues, Expenditures, and Changes in Unreserved Fund Balances – Debt Service Funds – Budget and Actual – Budgetary Basis 126 – 128 Schedule of Expenditures by Character – Debt Service Funds – Budget and Actual – Budgetary Basis 129 Combining Balance Sheet – Nonmajor Capital Projects Funds 130 – 131 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Capital Projects Funds 132 – 133 Combining Schedule of Revenues, Expenditures, and Changes in Unreserved Fund Balances – Annually Budgeted Capital Projects Funds – Budget and Actual – Budgetary Basis 134 Schedule of Expenditures by Character – Annually Budgeted Capital Projects Funds – Budget and Actual – Budgetary Basis 135 Combining Statement of Net Assets – Internal Service Funds 136 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets – Internal Service Funds 137 Combining Statement of Cash Flows – Internal Service Funds 138 Combining Statement of Pension Trust Funds Net Assets – Fiduciary Funds 139 Combining Statement of Changes in Fiduciary Net Assets – Fiduciary Funds – Police and Firefighters Pension Trust Funds 140 Schedule of Revenues and Expenditures – Fiduciary Funds – Police and Firefighters Pension Trust Funds – Budget and Actual – Budgetary Basis 141 Combining Statement of Agency Funds Net Assets – Fiduciary Funds 142 Combining Statement of Changes in Assets and Liabilities – Fiduciary Funds – Agency Funds 143 – 144 III. STATISTICAL SCHEDULES (UNAUDITED) Net Assets by Component 1 145 Changes in Net Assets 2 146 – 148 Program Revenues by Function/Program 3 149 Fund Balances, Governmental Funds 4 150 Changes in Fund Balances, Governmental Funds 5 151 – 152 Tax Revenues by Source, Governmental Funds 6 153 V VI TABLE OF CONTENTS (continued) Page(s) Assessed Value and Estimated Actual Value of Taxable Property 7 154 Direct and Overlapping Governments Property Tax Rates 8 155 Principal Property Tax Payers 9 156 Property Tax Levies and Collections 10 157 Ratios of Outstanding Debt by Type 11 158 Ratios of General Bonded Debt Outstanding 12 159 Schedule of Direct and Overlapping Debt and Bonded Debt Limit 13 160 – 162 Computation of Legal Debt Margin 14 163 Pledged-Revenue Coverage 15 164 Demographic and Economic Statistics 16 165 Principal Employers 17 166 Full-Time Equivalent City Government Employees by Function/Program 18 167 Operating Indicators by Function/Program 19 168 Capital Asset Statistics by Function/Program 20 169 July 20, 2010 To the Honorable Mayor Greg Ballard, Members of the City-County Council, and Citizens of Indianapolis, Indiana: I submit to you the Comprehensive Annual Financial Report (CAFR) of the City of Indianapolis (City) for the fiscal year ended December 31, 2009. The City is a component unit of the Consolidated City of Indianapolis – Marion County Reporting Entity. This report was prepared by the Office of Finance and Management (OFM). Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the Controller of the City of Indianapolis. The data, as presented, is accurate in all material respects. It is presented in a manner designed to set forth the financial position and results of operations of the City. Disclosures necessary to enable the reader to gain the maximum understanding of the City’s financial affairs are included. The CAFR conforms to the standards for financial reporting of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association of the United States and Canada (GFOA). There are three main sections to this report. The Introductory Section includes this letter, the Certificate of Achievement for Excellence in Financial Reporting, a description of the government and related taxing districts, a list of elected officials, and the City’s organizational charts. The Financial Section includes the independent auditors’ report, management’s discussion and analysis (MD&A), the basic financial statements for the City, and supplementary information. The Statistical Section includes selected financial and demographic information presented on a multiyear basis. The MD&A can be found beginning on page 3. The City is required to undergo an annual single audit in conformity with the provisions of the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations,