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City of Manhattan, Kansas

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City of Manhattan, Kansas CITY OF MANHATTAN, KANSAS Comprehensive Annual Financial Report Year Ended December 31, 2008 Prepared by: Department of Finance CITY OF MANHATTAN, KANSAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2008 TABLE OF CONTENTS INTRODUCTORY SECTION PAGE Letter of Transmittal ............................................................................................................................ 1 Certificate of Achievement for Excellence in Financial Reporting .................................................. 12 City Organizational Chart ................................................................................................................. 13 List of Principal Officials .................................................................................................................. 14 FINANCIAL SECTION Independent Auditor’s Report ........................................................................................................... 15 Management’s Discussion and Analysis ........................................................................................... 17 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ........................................................................................................... 31 Statement of Activities ............................................................................................................ 35 Fund Financial Statements: Balance Sheet - Governmental Funds ..................................................................................... 37 Reconciliation of the Balance Sheet to the Statement of Net Assets - Governmental Funds ............................................................................................................ 39 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ............................................................................ 40 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................... 42 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) - General Fund ........................................................ 43 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) - Riley County Police Department Fund ................ 45 Statement of Net Assets - Proprietary Funds ......................................................................... 46 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds ................................................................................................................. 50 Statement of Cash Flows - Proprietary Funds ....................................................................... 52 Statement of Fiduciary Net Assets - Fiduciary Funds ........................................................... 54 Statement of Changes in Fiduciary Net Assets - Fiduciary Funds ......................................... 55 Notes to the Financial Statements ............................................................................................... 56 TABLE OF CONTENTS PAGE Supplementary Information: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – Nonmajor Governmental Funds ................................................. 91 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .......................................................... 101 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis): Debt Service Fund…………………………………. ............................................................ 115 Nonmajor Governmental Funds…………………………………. ....................................... 116 Combining Statement of Net Assets - Internal Service Funds .................................................. 131 Combining Statement of Revenues, Expenses and Changes In Fund Net Assets - Internal Service Funds ......................................................................... 133 Combining Statement of Cash Flows - Internal Service Funds ................................................ 135 STATISTICAL SECTION Net Assets by Component .............................................................................................................. 138 Changes in Net Assets .................................................................................................................... 139 Fund Balances of Governmental Funds ......................................................................................... 141 Changes in Fund Balances of Governmental Funds ...................................................................... 143 Tax Revenues by Source, Governmental Activities ...................................................................... 145 Assessed and Estimated Actual Value of Taxable Property .......................................................... 146 City Mill Rates ............................................................................................................................... 148 Direct and Overlapping Property Tax Rates .................................................................................. 149 Principal Property Taxpayers ......................................................................................................... 150 Property Tax Levies and Collections ............................................................................................. 151 Taxable Sales by Category ............................................................................................................. 152 Direct and Overlapping Sales Tax Rates ....................................................................................... 153 Sales Tax Revenue Payers by Industry ......................................................................................... 154 Ratios of Outstanding Debt by Type.............................................................................................. 155 Ratios of General Bonded Debt Outstanding ................................................................................. 157 Direct and Overlapping Governmental Activities Debt ................................................................. 158 Legal Debt Margin Information ..................................................................................................... 159 Demographic and Economic Statistics ........................................................................................... 161 Principal Employers ....................................................................................................................... 162 City Government Employees by Function ..................................................................................... 163 Operating Indicators by Function .................................................................................................. 164 Capital Asset Statistics by Function ............................................................................................... 165 TABLE OF CONTENTS PAGE SINGLE AUDIT SECTION 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 ....................................................................................... 166 Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 ....................... 168 Schedule of Expenditures of Federal Awards - For the Year Ended December 31, 2008 ................ 170 Notes to Schedule of Expenditures of Federal Awards .................................................................... 171 Schedule of Findings and Questioned Costs ..................................................................................... 172 Summary Schedule of Prior Audit Findings ..................................................................................... 173 Page 1 administration of federal awards. These reports are included in the Single Audit Section of the Comprehensive Annual Financial Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Manhattan’s MD&A can be found immediately following the report of the independent auditors. Profile of the City of Manhattan The City of Manhattan was chartered in 1857 and is a city of the first class. The City operates under a Commission-Manager form of government. The City Commission consists of five members. Elections are held every other year in odd-numbered years. Three City Commission positions are chosen at each election. The two highest vote recipients receive four-year terms while the third highest vote recipient receives a two- year term. The City Manager is appointed by the Commission and is charged with the efficient and effective administration of the City. The City is in Pottawatomie and Riley Counties, Kansas, and is located at the confluence of the Blue and Kansas Rivers in Northeast Kansas approximately 116 miles west
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