STATE OF NEW MEXICO CITY OF CARLSBAD June 30, · PDF fileSTATE OF NEW MEXICO CITY OF CARLSBAD ROSTER OF OFFICIALS June 30, 2001 Gary L. Perkowski - Mayor City Council: Jimmie S. Cisneros

STATE OF NEW MEXICO

CITY OF CARLSBAD

ROSTER OF OFFICIALSJune 30, 2001

Gary L. Perkowski - Mayor

City Council:

Jimmie S. CisnerosManuel C. Anaya, Jr.Chuck WigginsLarry Henderson

Paul C. AguilarRenee McGuireDan P. FunchessRobert C. Murray II

WardlWard 2Ward 3Ward 4

Jane" WhitlockJon R. TullyEileen P. RiordanPearlene Bradshaw

Municipal JudgeCity AdministratorCity AttorneyDirector of Finance/City Clerk

STATE OF NEW MEXICO

CITY OF CARLSBAD

FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONFor the Year Ended June 30, 2001

TABLE OF CONTENTS

Exhibit

Independent Auditors' Report

FINANCIAL SECTION:

Combined Statements - - Overview ("Liftable" General Pumose Financial Statements):

Combined Balance Sheet -- All Fund Types and Account Groups. 1 2-3

Combined Statements of Revenues, Expenditures and Changes inFund Balances -- All Governmental Fund Types 2 4

Combined Statements of Revenues, Expenditures and Changes inFund Balances - Actual and Budget (Non-GAAP) Basis -- AllGovernmental Fund Types . 3 5-6

Combined Statements of Revenues, Expenses and Changes in FundEquity -- All Proprietary Fund Types 4 7

Combined Statements of Cash Flows -- Proprietary Funds s 8

Notes to Financial Statements

Statement!ScheduleFINANCIAL STATEMENTS/SCHEDULES OF INDIVIDUAL

FUNDS:

S~ecia1 Revenue Funds

A-ICombining Balance Sheet

Combining Statement of Revenues, Expenditures and Changes inFund Balance 25-26A-2

STATE OF NEW MEXICO

CITY OF CARLSBAD

FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnONFor the Year Ended June 30, 2001

TABLE OF CONTENTS(Continued) .

Statement!ScheduleFINANCIAL STATEMENTS/SCHEDULES OF INDIVIDUAL

FUNDS: (continued)~

S~cial Revenue Funds (continued):

Schedule of Revenues, Expenditures and Changes in FundBalances -- Actual and Budget (Non-GAAP Basis):

A-3A-4A-SA-6A-7A-8A-9A-IOA-IIA-I2A-I3A-I4A-ISA-16A-I7A-I8A-19

27282930313233343S3637383940414243

E-911 Special Revenue Fund. ...Fire Protection Special Revenue Fund ...Recreation Special Revenue Fund. .-Lodgers' Tax Special Revenue Fund. .Airport Special Revenue Fund.Cemetery Special Revenue FundEmergency Medical Services Special Revenue Fund.Local Government Corrections Special Revenue FundLaw Enforcement Protection Special Revenue Fund.Retired Senior Volunteer Special Revenue FundJob Training Partnership Act Revenue Fund.Park Improvement Special Revenue Fund.Street Improvement Special Revenue Fund.Community Development Special Revenue FundTraffic Safety Special Revenue FundNarcotics Forfeiture Special Revenue Fund.Special Police Programs Special Revenue Fund.

Debt Service Funds

B-1 4SCombining Balance Sheet.

Combining Statements of Revenues, Expenditures and ChangesIn Fund Balance . B-2 46


B-3B-4B-5B-6

. 47

. 48

. 49

. 50

1993 SAD No.1 Bonds Debt Service Fund1994 Sales Tax Bonds Debt Service Fund1993 Sales Tax Bonds Debt Service FundNMFA Debt Service Fund

STATE OF NEW MEXICO

CITY OF CARLSBAD

FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnONFor the Year Ended June 30, 2001

TABLE OF CONTENTS(Continued)

Statements!Schedule

~FINANCIAL STA TEMENTS/SCHEDULES OF INDMDUAL

FUNDS: (continued)

CaRita! Projects Funds

c: 52Combining Balance Sheet

Combining Statement of Revenues, Expenditures and ChangesIn Fund Balances C-2 S3


C-3C-4C-SC-6C-7C-8C-9

54555657585960

Water System Improvement Capital Projects FundProject Impact Capital Projects FundState Legislative Capital Projects Fund.Sandpoint Landfill Capital Projects FundSewer System Improvement Capital Projects FundErosion ControIn-ire Recycle Capital Projects FundOld Carlsbad Landfill Closure Capital Projects Fund

En~rise Funds

0-1 62Combining Balance Sheet

Combining Statement of Revenues, Expenses and Changesin Fund Equity D-2 63

D-3 64Combining Statement of Cash Flows

Internal Service Funds

&1 66Combining Balance Sheet

Combining Statement of Revenues, Expenses and Changesin Fund Equity 67B-2

68Combining Statement of Cash Flows B-3

STATE OF NEW MEXICO

CITY OF CARLSBAD

FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONFor the Year Ended June 30, 2001

TABLE OF CONTENTS(Continued)

Schedule /ScheduleFINANCIAL STATEMENTS/SCHEDULES OF INDIVillUAL

FUNDS: (continued)~

General Fixed Assets Account GroUP

F-l 70Schedule of Changes in General Fixed Assets

SUPPLEMENTARY INFORMATION:

7273747S

234

S6789

7677

78-7980-81

82

Supporting Schedules:1993 SAD Water and Sewer Improvements Bonds ...1994 Sales Tax Revenue BondsEnvironmental Services G.R. Tax Revenue BondsJoint Water and Sewer Refunding and Improvement Revenue BondsJoint Water and Sewer Fund:

Schedule of Cash Receipts and Disbursements -- RestrictedAccounts

Property Insurance and Surety Bond Coverage.Schedule of Collateral Pledged by Depositories.Schedule of Deposit Accounts and Investments. ...Schedule of Expenditures of Federal Awards '"

Independent Auditors' Report on Compliance and Internal ControlOver Financial Reporting Based on an Audit of FinancialStatements Perfonned in Accordance with Governmental AuditingStandards 83

Independent Auditors' Report on Compliance with Requirements Applicableto Each Major Program and Internal Control Over Compliancein Accordance with OMB Circular A-I33 84

Schedule of Findings and Questioned Costs 10 8S

Summary of Prior Year's Findings 86

(505) 885-3167FAX (505) 885-1807

Indenendent Auditors' Reoort

Mr. Domingo Martinez, State Auditor CFGM, andMayor and Members of the City CouncilCity of CarlsbadCarlsbad, New Mexico

We have audited the accompanying general purpose fInancial statements of the City of Carlsbad and the combining andindividual fund and account group financial statements of the City of Carlsbad as of and for the year ended June 30,2001, as listed in the table of contents. These financial statements are the responsibility of the City of Carlsbad'smanagement. Our responsibility is to express an opinion 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 andthe standards applicable to fmancial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management as well as evaluating the overall financialpresentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, thefmancial position of the City of Carlsbad as of June 30, 2001, and the results of its operations and cash flows of itsproprietary fund types for the year then ended in conformity with accounting principles generally accepted in the UnitedStates of America. Also, in our opinion, the combining and individual fund and account group fmancial statementsreferred to above present fairly, in all material respects, the fmancial position of each of the individual funds and accountgroups of the City of Carlsbad as of June 30, 2001, and the results of operations of such funds and cash flows ofindividual proprietary fund types for the year then ended in conformity with accounting principles generally acceptedin the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated October 22, 2001, on ourconsideration of the City of Carlsbad' s internal control over fmancial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be read in conjunction with this report in considering theresults of our audit

Our audit was perfonned for the purpose of fonning an opinion on the general purpose financial statements taken asa whole and on the combining, individual fund and account group financial statements. The accompanying financialinfonnation listed as supporting schedules in the table of contents is presented for the purposes of additional analysisand is not a required part of the fmancial statements of the City of Carlsbad. The accompanying schedule ofexpenditures of federal awards is presented for purpose of additional analysis as required by U.S. Office of Managementand Budget Circular A-I33, Auditf of States, Local Governments, and Non-Profit Organizations, and is not a requiredpart of the general purpose fmancial statements of the City of Carlsbad. Such infonnation has been subjected to theauditing procedures applied in the audit of the general purpose, combining, and individual fund and account groupfmancial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statementsof each of the respective individual funds and account groups taken as a whole.

d= Lu'5:;~'~._-Certified Public AccountantsOctober 22, 200 1

_1.

CERTIFIED PUBLIC ACCOUNTANTSCHARLES R. JONES 209 W MCKAY Member of

DONALD W. KLUESNER CARLSBAD, NM 88220 American Institute ofCertified Public Accountants

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EXHIBIT 2

STATE OF NEW MEXICOCITY OF CARLSBAD

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGESIN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES

For the Year Ended June 30, 2001

Total

(Memorandum-Only)

CapitalProjects

SpecialRevenue

DebtServiceGeneral

S 5,517,0297,924,142

135,607344,503360,667469,007

449.505

15.200.460

S 521,500424,506

202,847

375,719612,94375.543

2.213.058

s s S 6,038,5298,348,648

135,607547,350360,667

1,287,582632,019601.454

17.951.856

-

-

35,996

42.293

78.289

406,86019,07634.113

460.049

REVENUESState shared taxedTaxesLicenses and pennitsOIarges for servicesFines and forfeitsState and county grantsFederal grantsMiscellaneous

Total revenues

2,129,6227,465,7123,091,5542,775,774

410,430

2.250,733

2,129,6227,151,3892,570,0092,279,165

103,111

271,821

314349496307

1,241

~

1

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112.278

737,727

EXPENDITURESCurrent

General governmentPublic safetyPublic worksCulture and recreationPublic health and welfareEconomic development

Capital outlayDebt service:

PrincipalInterest

455,000134.706

589.706

455,000134.706

18.713.531

-,:~14.505.117 2.708.703 910.005Total expenditures

( 449,956) 761,675)495,645) 511,417)Excess (deficiency) of

revenues over expenditures 695,343

OTHER FINANCING SOURCES (USES)Operating transfers in 1,486,110Operating transfers (out) (631.284)

322,023( 69.118)

345,295 307,022( 2.592)

2,460,450( 702.994)

2S2.90S 345.295 304.430 1.757.456Net other fmancing sources

(uses) 854.826

Excess (deficiency) of revenuesand other fmancing sourcesover expenditures and otherfinancing uses 995,7811,550,169 242,740) 166,122) (14S,s26)(.

Fund Balance (deficit),June 30, 2000 753.883 609.282 4.550.8282.362.806 824.857

Fund Balance (deficit),June 30,2001 S 587.761 S 463.756 $ 5.546.609S 3.912.915 S 582.117

The Accompanying Notes are an Integral Part of These Financial Statements.

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-.323,267,609,319

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EXHIBIT 4STATE OF NEW MEXICO

CITY OF CARlSBAD

COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY-ALL PROPRIETARY FUND TYPES


Total(Memorandum

Only)InternalServiceEntemrise

OPERATING REVENUESCharges for serviceState and county grantsFederal grants

$ 11,157,343402,614169.960

$ 8,861,255402,614169.960

s 2,296,088

2.296.088 11.729.9179.433.829Total operating revenues

2,973648413

2,973,174648,093741,713

-

328,313

OPERATING EXPENSESPersonal services and benefitsPower and fuelGeneral insuranceWorkman's compensation and

health benefitsOther operating expensesDepreciation

1,453,67843,468

1,453,6782,489,6081.261.320

-2,446,1401.261.320

7.742.127 1.825.459 9.567.586Total operating expenses

2.162.3311.691.702 470.629Operating income (loss)

NON-OPERATING REVENUES (EXPENSES)Tax revenueRentInterest incomeInterest expenseMiscellaneous

276,846203,414

1,801,511( 1,011,216)

53.898

276203

1,883{ 1,011:

53

-

82,151

Net non-operating revenues(expenses) 1.324.453 82.151 1.406.604

3,568,9353,016,155 552,780Net income (loss) before transfers

( 1.757.456)( 1.537.149) ( 220.307)Operating transfers in (out)

1,811,4791,479,006 332,473Net income (loss)

371,620371,620Current year's contributed capital

1.597.222 33.331.67031.734.448Fund Equity, June 30, 2000

s 1.929.695 $ 35.514.769$ 33.585.074Fund Equity, June 30,2001

The Accompanying Notes are an Integral Part of These Financial Statements

_7-

,174,093,400

,846,414,662,216)~

EXHIBITSSTATE OF NEW MEXICO

CITY OF CARLSBAD

COMBINED STATEMENT OF CASH FLOWS-ALL PROPRIETARY FUND TYPES


Total(Memorandum

Only)InternalServiceEntemrise

CASH FLOWS FROM OPERATING ACDVITIES:Cash received from customers and operating grantsCash payments to suppliersCash payments to employees

$ 11,766,877( 3.904,169)( 4.400.934)

s 9,470,789( 3,532,388)( 2.938.084)

$ 2.296,088( 371,781)( 1.462.850)

Net cash provided (used) by operatingactivities 461.457 3.461.7743.000.317

276,846

25,910

( 1.757.456)

276,846

25,910

( 1.537.149)

-

( 220.307)

CASH FLOWS FROM NONCAPITAL FINANCINGACTIVITIES:

Taxes receivedCustomer deposits (net)Openlting ~fer in (out)

Net cash provided (used) by noncapitalfinancing activities ( 220.307) ( 1.454.700)( 1.234.393)

53,898371,620

( 796,021)( 2.121.637)

53,898371,620

( 796,021)( 2.121.637)

-CASH FLOWS FROM CAPITAL FINANCINGACTIVITIES:

Sale of assets and miscellaneousContributed capitalAcquisition of capital assetsInterest and principal paid on bonds and leases

Net cash provided (used) by capital financingactivities ( 2.492.140) ( 2.492.140)

CASH FLOWS FROM INVESTING ACTIVITIES:Interest and rent received (net) 2.004.925 82.151 2.087.076

323,301 ,602,0101,278,709Net increase (decrease) in cash

1.629.078 31.239.80129.610.723CASH AT BEGINNING OF YEAR

$ 32.841.811$ 30.889.432 $ 1.952.379CASH AT END OF YEAR

$ 2,162.331s 1,691,702 s 470,629

1,261,32036.9602.731

( 152,003)150.435

1,261,32036,9602,731

( 142,831)150.435

-

9,172)

RECONCILIAnON OF OPERATING INCOME TOCASH PROVIDED BY OPERATING ACTIVITIES:

Operating income (loss)Adjustments to reconcile operating income (loss)

to net cash provided by operating activities:Depreciation(Increase) decrease in receivables(Increase) decrease in inventoryIncrease (decrease) in accounts payableIncrease (decrease) in accrued expenses

$ 3.461.774$ 3.000.317 $ 461.457Net cash provided (used) by operating activities


~-


Notes to Financial StatementsJune 30,2001

Nature of Business and Significant Accounting PoliciesNOTE 1.

A. Nature of Business

The City of Carlsbad was established on March 25, 1918 by proclamation of W.E. Lindsey, Governor of the Stateof New Mexico. The City operates under a Mayor-City Council fonn of government and provides the followingservices as authorized by public law: public safety (police and fIre), highways and streets, sanitation, health andsocial services, culture and recreation, public improvements, planning and zoning, water, sewer, waste disposal and

general administrative services.

The financial statements of the City of Carlsbad have been prepared in accordance with generally acceptedaccounting principles (GAAP) as applied to governrnental units. The Governrnental Accounting Standards Board(GASB) is the standard-setting body for governrnental accounting and fmancial reporting. The more significantof these accounting policies are described below.

B. Fund Accounting

The accounts of the City are organized on the basis of funds and account groups, each of which is a separateaccounting entity. The operations of each fund are accounted for through a set of self-balancing accounts whichcomprise its assets, liabilities, fund equity, revenues, and expenditures/expenses. Accordingly, interfund receivablesand payables have not been eliminated. The various funds are summarized by type in the fmancial statements. Thememorandum totals included in the combined financial statements are presented only for informational purposesand are not intended to represent the financial position, results of operations, or the changes in fmancial position

of the City as a whole.

The following fund types and acCO\Blting groups are used by the City:

GOVERNMENTAL FUNDS

General Fund - The General Fund is the operating fund of the City. It is used to account for all financial resourcesexcept those required to be accounted for in another fund.

Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue resources

that are legally restricted to expenditures for specified purposes.

Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and thepayment of, general long-term debt principal, interest, and related costs.

Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for theacquisition or construction of major capital facilities.

PROPRIETARY FUNDS

Enterprise Funds - Enterprise Funds are used to account for operations that are fmanced and operated in a mannersimilar to private business enterprises where the intent of the governing body is that the costs of providing goodsor services to the general public on a continuing basis be fmanced or recovered primarily through user charges; orwhere the governing body has decided that periodic determination of revenues earned. expenses incurred, and/ornet income is appropriate for capital maintenance, management control, accountability, or other purposes.

-9-


Notes to Financial Statements(continued)

NOTE! Nature of Business and Significant Accounting Policies (continued)

B. Fund Accounting (continued)

Internal Service Funds - The Internal Service Funds are used to account for the fmancing of goods or servicesprovided by one department or agency to other deparbnents or agencies of the City, or to other governments, ona cost-reimbursement basis.

ACCOUNT GROUPS

Fixed Asset and Long- Tenn Liabilities - The accounting and reporting treabnents applied to the fixed assets andlong-tenD liabilities associated with a fund are detennined by its measurement focus. All governmental funds areaccounted for on a spending or "financial flow" measurement focus. This means that only CUlTent assets andcurrent liabilities are generally included on their balance sheets. Their reported fund balance (net current assets)is considered a measure of "available spendable resources." Governmental fund operating statements presentincreases (revenues and other financing sources) and decreases (expenditures and other fmancing uses) in netcurrent assets. Accordingly, they are said to present a summary of sources and uses of "available spendableresources" during a period.

Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General FixedAssets Account Group, rather than in governmental funds. Public domain ("infrastructure") general fIXed assets,consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets andsidewalks, drainage systems and lighting systelns, are capitalized along with other general fixed assets. Nodepreciation has been provided on general fixed assets.

All fiXed assets are valued at historical cost or estimated historical cost if actual historical cost is not availableDonated fIXed assets are valued at their estimated fair value on the date donated.

Long-tenn liabilities expected to be fInanced from governmental funds are accounted for in the General Long- TennDebt Account Group, not in the governmental funds.

The two account groups are not "funds." They are concerned only with the measurement of financial positionThey are not involved with measurcment of results of operations.

Because of their spending measurement focus, expenditure recognition for governmental fund types is limited toexclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-tenDamounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reportedas liabilities in the General Long-Term Debt Account Group.

All proprietary funds are accounted for on a cost of service or "capital maintenance" measurement focus. Thismeans that all assets and all liabilities (whether current or noncurrent) associated with their activity are includedon their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital andretained earnings components. Proprietary fund type operating statements present increases (revenues) anddecreases (expenses) in net total assets.

-10-



Nature of Business and Significant Accounting Policies (continued)NOTE 1.

B. Fund Accounting (continued)

D~reciation of all exhaustible fIXed assets used by proprietary funds i,s accounted for as an expense against theiroperations, Accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has beenprovided over the estimated useful lives as follows:

50 years4-12 years

Joint Water and Sewer Fund:Utility PlantMachinery and equipment

Solid Waste Disposal Fund:

EquipmentLandfill

4-12 years20 years

4-12 yearsMunicipal Transit Equipment

C. Basis of Accounting

Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts andreported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardlessof the measurement focus applied.

All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues arerecognized when they become measurable and available as net current assets. Taxpayer assessed taxes areconsidered "measurable" when in the hands of intermediary collecting governments and are recognized as revenueat that time. All other revenues are recognized when received in cash, or when grant revenues have been earned.

Expenditures are generally recognized under the modified accrual basis of accounting when the related fundliability is incurred. The exceptions to this general rule include principal and interest on general long-term debt,if any, which is recognized when due.

All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized whenthey are earned, and their expenses are recognized when they are incurred.

D. Budgets and Budgetary Accounting

Annual budgets of the City are prepared prior to June 1 and must be approved by resolution of the City Council.and submitted to the Department of Finance and Administration for State approval. Once the budget has beenformally approved, any amendments must also be approved by the City Council and the Department of Financeand Administration. A separate budget is prepared for each fund. Line items within each budget may beoverexpended; however, it is not legally permissible to overexpend any budget in total.

Budgeted amounts are as originally adopted, or as amended by the City Council and approved by the Departmentof Finance and Administration. Budgets for all Governmental Fund Types are adopted on a cash basis which is notconsistent with generally accepted accounting principles (GAAP).

E. Inventory

Inventory is valued at the lower of cost (first-in, flTSt-out) or market. Inventory in the Enterprise Funds consistsof expendable supplies held for consumption. A perpetual inventory system is employed by the City.

-11-



Nature of Business and Significant Accounting Policies (continued)NOTE 1.

F. Advance to Other Funds

Current interfund loans receivable (reported in "Due from" assets accounts) are cOnsidered "available spendableresources."

G. Compensated Absences

A total of 10 to 30 days vacation and 12 days of sick leave per year may be accumulated by each employee of theCity; however, employees are not paid for the accumulated sick leave upon retirement or other termination. Amaximum of75 days of vacation may be accumulated for appointed officers. Hourly workers may accumulate upto 30 days of vacation. The City accrues a liability for compensated absences which meet the following criteria:

The City's obligation related to employees' rights to receive compensation for future absences isattributable to employees' services already rendered.

A.

The obligation relates to rights that vest or accumulate.B.

Payment of the compensation is probable.c.The amount can be reasonably estimated.D.

In accordance with the above criteria, the City has accrued a liability for vacation pay which has been earned but

not taken by City employees.

For governmental funds the liability for compensated absences is in the general long-term debt account group sinceit is anticipated that none of the liability will be liquidated with expendable available financial resources. Theliability for compensated absences is recorded in proprietary fund types as an accrued liability in accordance with

FASB Statement 43.

H. Restricted Assets

These assets consist of cash deposits and investments restricted for Enterprise Funds debt service, acquisition ofcapital assets, and funds held as security deposits from Water and Sewer Fund customers.

A. Due From Other Governments

Amounts due from other governments represent taxes collected by the State and County, but have not been remittedto the City by June 30, 200 1, and grant revenue earned but not received by June 30, 200 1.

Stewardship, Compliance and AccountabilityNOTE 2.

A. Compliance with Finance Related Legal and Contractual Provisions

The City has no material violations of finance related legal or contractual provisions.

-12-



Stewardship, Compliance and Accountability (continued)NOTE 2.

B. Deficit Fund Balance of Individual Funds

The Recreation Fund, Project Impact and Erosion Control Capital Projects Funds had deficit fund equity balancesas of June 30, 200 1, due to accounts payable and construction contracts existing at June 30, 2001. Revenue receiptssubsequent to June 30, 2001 were used to clear the deficit fund balances.

NOTE 3. Cash and Investments

Cash and cash equivalents (short terDl investments) consisted of the following at June 30, 200 1:

$ 2,3596,622,182

121,0533,960,868

26.438.000

Cash on handUS Government SecuritiesWells Fargo Bank TrustCash in banksCertificates of deposit

$ 37.144.462

The City maintains cash accounts and certificates of deposit in four banks within its geographical area. The banksare covered by FDIC insurance and collateral pledged to the City of Carlsbad accounts. The collateral pledgedconsists of obligations insured or guaranteed by the U.S. agencies or obligations insured or guaranteed by the State

and its subdivisions.

At June 30, 2001, the bank balances of the City's deposits totaled $30,979,874, and the carrying amount was$30,398,868. Of the bank balance amount, $500,000 was covered by federal depository insurance, 524,325,114was supported by collateral held in joint safekeeping receipt by a third party, and 56,154,760 was uninsured anduncollateralized.

Investments that are insured or collateralized with securities held by the City or its agent inthe City's name. This includes Certificates of Deposit and demand funds.

CATEGORYl

Investments collateralized with securities held by the pledging financial institution's trustdepartment or agent in the City's name.

CATEGORY 2

Investments uncollateralized. This includes any bank balance that is collateralized withsecwities held by the pledging fInancial institution, or by its trust department or agent butnot in the City's name.

CATEGORY 3

Based on the above criteria, the City's bank deposits at June 30, 2001 are classified as follows:

BankReconciliation

Amount

BankStatementAmountC.t~Ory 2 Cat~orv 3Catev:orv 1DescriDtiODS

Deposits:Pioneer SavingsWells Fargo BankWestern Commerce BankCarlsbad National Bank

s S,417,()()()6,16S,O43

12,4S7,S8S6.3S9.240

30.398.868

$ 4,945,4694,390,4699,942,5285.046.648

$24.325.114

$ 371,5311,869,1312,325,2251.588.873

$ 6.154.760

S 5,417,0006,359,600

12,467,7536.735.521

S 30.979.874

s 100,000100,000200,000100.000

500.000 s$Total

-13-



Reconciliation of Operations on Modified Accrual Basis to Budgetary BasisNOTE 4.

The City's Combined Statement of Revenues, Expenditures 3;Dd Changes in Fund Balances - All GovernmentalFund Types has been prepared on the modified accrual basis in accordance with generally accepted accountingprinciples (GAAP). The Combined Statement of Revenues and Expenditures - Actual and Budget (Non-GAAPBasis) has been prepared on the budgetary basis, with the modified accrual data adjusted to the budgetary basis.

The following schedule is a reconciliation of the budgetary and GAAP basis, excess (deficiency) of revenues andother fmancing sources over expenditures and other (uses):

SpecialRevenue

DebtService

CapitalProiectsGeneral

Excess (deficiency) ofrevenues and other fmancingsources over expendituresand other (uses) (budgetary

basis) $ (166,122) s (214,374)$ 1,357,505 $ ( 250,639)

146,942136,121 4,849}

Adjustments:To adjust revenues for:

Due from other governments,net change in tax revenueand deferrals

To adjust expenditures for:Accounts payable and accruedexpenses, net change 12.748 ( 78.094)56.543

Excess (deficiency) of revenuesand other financing sourcesover expenditures and other(uses) (GAAP basis) $ (166.122) $ (145.526)$ 1.550.169 $ (242.740)

NOTE 5. Interfund Transactions

Interfund receivables and parables (Due to/Due from other funds) amounted to $25,861 at June 30, 2001.

NOTE 6. Changes in General Fixed Assets

A summary of changes in general fixed assets is presented in Schedule F -Ion this report.

A summary of Proprietary Fund type property, plant and equipment at June 30, 200 1 follows:

-14-



Changes in General Fixed Assets (continued)NOTE 6.

SolidWaste

Di§nQsalMunicipal

TransitJoint Waterand Sewer

$$ 923,9531,072,764

$ -127,125

Land and Water RightsBuildingsbnprovements other than

BuildingsEquipment

Total

33,248,4962.127.002

37,372,215

2,299,0753.849.3996,275,599

-270.911270,911

4.254.690 122.38616.480.032Less accumulated depreciation

$ 148.525$ 20.892.183 $ 2.020.909Net

Changes in Long-Term DebtNOTE 7.

The following is a summary of Long-Term Debt transactions of the City of Carlsbad for the year ended June 30,2001:

Additions(Reductions)

Payable atJune 30.2001

Payable atJuly 1. 2000

s$ $ -2,070,000

-2,490,000

35,000

-

420,000)35,000)

((

910.204723.628 186.576

General Long- Tenn Debt:General obligation bondsRevenue bondsNM Finance Authority loanLiability for compensated

absencesTotal generallong-tenn

debt 2.980.2043.248.628 ( 268.424)

Enterprise Long-Term Debt:Capital leases and loans ( 319.232) 394.266713.498

( 820,000)32.503

( 787.497)

20,205,000( 582.327)19.622.673

21.025.000( 614.830)20.410.170

Revenue bondsUnamortized discount

Net revenue bonds

$ 22.997.143$ 24.372.296 $ (1.375.153)Total

-15-



Changes in Long-Term Debt (continued)NOTE 7.

The details of long-term debt at June 30, 2001 are as follows:Amount

Outstandin2

Revenue Bonds

$310,000 Special Assessment District Bond issue of December 1, 1993, due inannual installments of $10,000 to $55,000 through October 1,2003; interestrate of 5.5%. $ 60,000

$2,780,000 Sales Tax Revenue Bonds issue of November I, 1994, payable in annualinstallments of$115,000 to $285,000 through October 1,2010; interest rate of 4.25%to 6.3%. 2.010.000

2.070.000Total Revenue Bonds

Other Lon2- Tenn Debt

910.204Liability for compensated absences

$ 2.980.204Total General Long-Term Debt

Ent~rise Fund Lon2- Term Debt

$1,165,000 Environmental Services Gross Receipts Tax Revenue Bonds issue ofDecember 1,1994, due in annual installments of $80,000 to $130,000 throughJune 1, 2006; interest rate of 5% to 6.6%. $ 610,000

$21,370,000 Joint Water and Sewer Refunding and Improvement Revenue Bondsissue of November 1,1998, due in annual installments of $375,000 to $1,555,000through June 1,2019; interest rate of 4% to 4.75% 19,595,000

$611,112 Note Payable to NM Finance Authority, dated 11/1/99, payable in annualInstallments of $111 ,291 to $144,606 through 5/1/2004; interest rate of 4.33%,secured by net solid waste enterprise fund revenues.

Total Enterprise Fund Debt394.266

20,599,266

582,327)(Less unamortized discount

( 982.704)Less current portion

$ 19.034.235Net Enterprise Fund Long-Term Debt

-16-



Changes in Long-Term Debt (continued)NOTE 7.

The annual requirements to amortize long-term debt outstanding as of June 30, 2001 are listed below:

General Lone;-Term DebtNote

PayableRevenueBonds

Year EndingJune 30

EnterpriseFunds .IQ!!!l.

$ $ 1,918,8791,912,4861,919,2381,774,4321,762,382

21.128.142

$ 2,211,8722,205,5772,196,7532,041,7822,029,092

22.480.972

200220032004200520062007-2019

$ 292,993293,091277,515267,350266,710

1.352.830

~

~~,',,-~

$ 30.415.559 $ 31.l§_6a~~$ 2.750.489 sTotal

Retirement PlanNOTE 8.

Substantially all of the City of Carlsbad's full-time employees participate in a defined benefit contributoryretirement plan through the Public Employees' Retirement Act (PERA) of the State of New Mexico, a cost-sharingmultiple employer public employee retirement system. Information pertaining to the actuarially computed presentvalue of vested accumulated plan benefits and nonvested accumulated plan benefits, the plan's net assets availablefor benefits and the assumed rate of return used in computing the present value, and ten-year historical trendinformation presenting PERA' s progress in accumulating sufficient assets to pay benefits when due is not availableby individual government agencies participating in the plan. Actuarial pension data for the State of New Mexico,as employer, is provided at the state-wide level in a separately issued audit report of the PERA.

Retirement Elieibilitv

Eligibility for receiving the monthly benefit equal to the number of years of credited service x 2.5% of their finalaverage monthly salary, the 36 consecutive months of credited service producing the largest average, is as follows:

Any age with 25 or more years of credited service; orAge 60 or older with 20 or more years of credited service; orAge 61 or older with 17 or more years of credited service; orAge 62 or older with 14 or more years of credited service; orAge 63 or older with 11 or more years of credited service; orAge 64 or older with 8 or more years of credited service; orAge 65 or older with 5 or more years of credited service.

Funding Policy

Covered regular employees are required by State Statute to contribute 13.15% of their gross salary, and police andfire department employees are required to contribute 16.3% and 16.2% respectively of their salary to the plan. TheCity is required by State Statute to contribute 9.15% for municipal employees, 18.5% for law enforcement, and21.25% for fire department employees. The requirements may be amended by acts of the legislature. Thecontribution requirement for the City of Carls bad for the year ended June 30, 200 I was $2,529,917, which consistedof$I,190,129 from the City and $1,339,788 from the employees. The contribution requirement for the City ofCarlsbad for the years ended June 30, 2000 and 1999, was $2,445,800 and $2,361,197 respectively.

-17-



Retirement Plan (continued)NOTE 8.

If a members employment is terminated before the member is eligible for any other benefits under PERA, themember may receive a refund of the member's contribution and interest accrued based on rates establishedbiannually by the retirement board.

The payroll for employees covered by PERA for the year ended June 30, 2001 was $9,474,867 and the total payrollfor all employees of the City was $11,253,493.

NOTE 9. Deferred Compensation Plan

The State of New Mexico offers state, local government and school district employees a deferred compensationplan created in accordance with Internal Revenue Code Section 457. The plan, available to all State employees andthose local government and school district employees whose employers have elected participation in the plan,permits participants to defer a portion of their salary until future years. The deferred compensation is not availableto employees until termination, retirement, death or unforeseeable emergency.

All amounts of compensation deferred under the plan, all property and rights purchase with those amounts and allincome attributable to those amounts, property or rights are (until paid or made available to the employees or otherbeneficiary) solely the property and rights of the State of New Mexico (without being restricted to the provisionsof benefits under the plan), subject only to the claims of the State's general creditor. Participants' rights under theplan are equal to those of general creditors of the State in an amount equal to the fair market value of the deferredaccount of each participant.

There are employees who are making conbibutions to the Deferred Compensation Plan. Neither the City ofCarlsbad nor the State ofN ew Mexico make any conbibution to the Deferred Compensation Plan. All conbibutionswithheld from participants' wages by the City of Carlsbad have been paid to the New Mexico Employees'Retirement Association. which arlmini~ters the plan.

Post-Employee BenefitsNOTE 10.

The Retiree Health Care Act (Act) (Chapter 10, Article 7CNMSA 1978) provides comprehensive core group healthinsurance for persons who have retired from certain public service in New Mexico. The Retiree Health CareAuthority is the adminiskator of the plan. The purpose is to provide eligible retirees, their spouses, dependents,and surviving spouses and dependents with health insurance consisting of a plan, or optional plans, of benefits thatcan be purchased by funds flowing into Retiree Health Care Fund and by co-payments or the out-of-pocketpayments of eligible retirees.

Eligible employers consist of institutions of higher education, school districts, or other entities participating in thePublic School Insurance Authority, state agencies, state courts, magistrate courts, municipalities or counties, whichare affiliated under or covered by the Education Retirement Act, Public Employees Retirement Act, VolunteerFirefights Retirement Act, Judicial Retirement Act or the Magistrate Retirement Act.

Eligible retirees are: (1) retirees who make contributions to the fund for at least five years prior to retirement andwhose eligible employer during that period oftitne made contributions as a participant in the Retiree Health CareAct on the person's behalf unless that person retires on or before July I, 1995, in which event the time period forcontributions becomes the period of time between July 1, 1990 and the date of retirement; or (2) retirees definedby the act who retired prior to July I, 1990.

-18-



Post-Employment Benefits (continued)NOTE 10.

Each participating employer makes contributions to the fund in the amount of one percent of each participatingemployee's annual salary. Each participating employee contributes to the fund an employee contribution equal toone-half ~f one percent of the employee's annual salary. Each participating ,retiree pays a monthly premium offifty-seven dollars and sixty-five cents ($57.65) for the basic single plan and an additional five dollars ($5.00) ifthe eligible participant retired prior to July 1, 1990 and made no contributions to the plan.

Contributions from participating employers and participating employees become the property of the Retiree HealthCare Fund and are not refundable under any circumstances. including termination of employment or terminationof the participating employer's operation or participation in the Retiree Health Care Act. The employer. employee.and retiree contributions are required to be remitted to the Retiree Health Care Authority on a monthly basis.

The Retiree Health Care Authority issues a separate, publicly available audited fmancial report that includes postemployment benefit expenditures of premiums and claims paid, participant contributions (employer, employee andretiree), and net expenditures for the fiscal year. The report also includes the approximate number of retireesparticipating in the plan. That report may be obtained by writing to the Retiree Health Care Authority, 625 DonGasper, Santa Fe, New Mexico 87501.

For the fiscal year ended June 30, 2001, the City of Carlsbad remitted $94,748 in employer contributions and$47,374 in employee contributions.

NOTE 11. Litigation

There are several pending lawsuits in which the City is involved. The City Attorney estimates that the potentialclaims against the City not covered by insurance resulting from such litigation would not materially affect thefInancial statements of the City.

NOTE 12. Contingencies

The City maintains a self-insurance program for workers' compensation and employee health benefits. Theseprograms are accounted for in die Internal Service Funds. Funding is provided by charging the other funds as costsare incurred for workers' compensation benefits and charges an estimated premium based on a minimum premiumplan for employees healdi benefits. The City has unrecorded liabilities for workers' compensation and healthbenefits for unpaid claims and incurred but not reported claims. A reasonable estimate of the amount ofunrecordedliabilities cannot be made. Therefore, no contingent liability has been recorded.

NOTE 13. Commitments

As of June 30, 2001, the City of Carls bad had the following construction commitments:

$ 195.380205.952

1.065.127

Renovations to San Jose Senior Citizens CenterSan Jose Community Development ProjectCarlsbad Lift Station and Septage Disposal

$ 1.466.459Total Commitments

-19-



NOTE 14. Landfill Closure and Postclosure Care Cost

State and federal laws and regulations require that City to place a fmal cover on its Sandpoint landfill site when itstops accepting waste and to perfonn certain maintenance and monitoring functions at the site for thirty years afterclosure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stopsaccepting waste, the ,City reports a portion of these costs as an operating expense in each,period based on landfillcapacity used as of each balance sheet date. Under a joint powers agreement with Eddy County, the City's shareis 50% of the total closure and postclosure care cost.

The amount accrued for the year ending June 30, 200 1 is $734,459, and represents the cwnulative amount reportedto date based on the use of 12.44% of the estimated capacity of the landfill. The City will recognize the remainingestimated cost of closure and postclosure care of $5 .91 million as the remaining estimated capacity is filled. Theseamounts are based on what it would cost to perform all closure and postclosure care in 200 1. The City expects toclose the landfill in the year 2055. Actual cost may be higher due to inflation, changes in technology, or changesin regulations.

NOTE 15. Financial Statement Preparation

The City of Carlsbad maintains adequate accounting records for the preparation of financial statements inaccordance with generally accepted accounting principles. However, the accompanying financial statements havebeen prepared for the City by the accounting firm of Jones & Kluesner, CPA's.

-20-

SPECIAL REVENUE FUNDS

E-911 FundTo account for funds received from telephone customers restricted for use in providing emergency 911 telephone system andservices as specified in Section 63-90-8 NMSA 1978.

Fire Protection FundTo account for funds received from the State Fire Allotment for operating and capital outlay for the fire department as specifiedin Section 59A-53-1 to 59A-53-17 NMSA 1978.

Recreation FundTo account for revenues from cigarette tax restricted to recreation facilities as specified in Section 7-12-75 NMSA 1978.

Lodgers' Tax FundTo account for lodgers' tax revenues restricted to promotion of the City of Carlsbad, as specified in Section 3-38-13 to 3-38-24NMSA 1978.

Airport FundTo account for federal, state and county grants used in operation and maintenance of the Municipal AiJport.

Cemetery FundTo account for funds received for the operation and maintenance of the Municipal Cemetery as specified in ordinance No. 427,City of Carlsbad Code Sec. 7-19.

Emergency Medical Service FundTo account for state funds received from state grants used for purchase of emergency medical equipment as specified in Section24-10A-1 to 24-10A-9 NMSA 1978.

Local Government Correction FundTo account for special fees received on citations used to pay for prisoners' board, as specified in Section 33-3-25 NMSA 1978.

Law Enforcement Protection FundTo account for the state funds received for law enforcement training and equipment as specified by Section 29-13-9 NMSA 1978.

Retired Senior Volunteer FundTo account for funds received for the Retired Senior Volunteer Program funded under Domestic Volunteer Services Act (P .L.93-133).

Job Training Partnership Act FundTo account for funds received for ajob training stay in school program funded under Title II-A of the Job Training PartnershipAct of 1982 (P .L. 97-300).

Park Improvement FundTo account for state grants to build and improve parks within the City.

Street Improvement FundTo account for funds received from motor vehicle fees, and state and county grants restricted to street improvement as specifiedin the City of Carls bad Ordinance No. 389.

Community Development FundTo account for funds received for community development and improvements funded under New Mexico CommunityDevelopment Block Grants pursuant to Title I HUD.

-21-

SPECIAL REVENUE FUNDS(continued)

Traffic Safety FundThe City passed an ordinance, 50-3E, creating a fund for the collection of Traffic Safety fees for use by the Police Depamnent

and to provide for the purchase of equipment and support services as necessary to establish and maintain such a program.

Narcotics Forfeiture FundThe City established this fund to account for the Police Department's court awarded property (cash and/or physical). This moneyis to be used for the purchase of equipment and support services as needed for the continuing fight against drug abuse in thecommunity .

Special Ponce Programs FundThe City established this fund to track grants for special police related programs, i.e., Teen Court, Juvenile Community ServicePrograms, and special DWI grants.

-22-

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Schedule A-3STATE OF NEW MEXICO

CITY OF CARLSBAD

E-911 SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Noo-GAAP Basis)


Favorable(Unfavorable)

VarianceBudgetary

Basis BudeetActual Adjustments

$ 225,5763.500

S (160,333)1.682

$ 65,2435.182

s $ 65,2435.182

REVENUES:State and county grantsMiscellaneous

~

~

70.425 229.076 (158.651)70.425Total revenues

3,193158.212

1,30762.864

4,500221.076

EXPENDITURES:Current:

Public safetyCapital outlay

1,30762.864 ...

64.171 225.576 161.40564.171Total expenditures

Excess (deficiency) of revenuesover expenditures . 2,7546,254 3,5006.254

126.348 126.348126.348Fund balance, June 30, 2000

$ 2.754$ $ 132.602 $ 129.848Fund balance, June 30, 2001 $ 132.602

. Represents the cash balance allocation on the budgetary basis.


-27-


CITY OF CARLSBAD

FIRE PROTECTION SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

Basis BudgetActual Adiustments

$ 105,5903.447

$ s 105,5903.447

$ 86,3031.500

$ 19,2871.947

REVENUES:State and county grantsMiscellaneous

~;:-c.c

Total revenues 109.037 109.037 87.803 21.234


Public safetyCapital outlay

49,53222.469

83 49,61522.469

49.19337.110

(422)14.641

Total expenditures 72.001 83 72.084 86.303 14.219

Excess (deficiency) of revenuesover expenditures. 37,036 (83) 36,953 1,500 35,453

Fund balance, June 30, 2000 42.413 42.413 42.413

Fund balance, June 30, 2001 $ 79.449 $ (83) $ 79.366 $ 43.913 $ 35.453



-28-

Schedule A-SSTATE OF NEW MEXICO

CITY OF CARLSBAD

RECREATION SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual Bud2etAdjustments

REVENUES:

$ 31.193 $State shared taxes $ 30.433 S 761 $ 31.194 1

77,58612.000

78,43510.483

(849) 77,58610.483


Culture and recreation

Capital outlay

-1.517

88.918 (849) 88.069 89.586Total expenditures

Excess (deficiency) of revenuesover expenditures (58,393) 1,518(58,485) 1,610 (56,875)

60.000 60.000 60.000

OTHER FINANCING SOURCES(USES):Operating transfers in

Excess (deficiency) of revenuesover expenditures and other(uses). 1,610 3,125 ,607 ,5181,515

Fund balance, June 30, 2000 ( 3.425) ( 3.425) ( 3.425)

$ 1.610 $ (300) s (1.818) $ 1.518Fund balance, June 30, 2001 $ (1.910)

* Represents the cash balance allocation on the budgetary basis.


-29-


CITY OF CARLSBAD

LODGER'S TAX SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

Basis BudgetActual Ad1ustments

REVENUES:

$ 418,59930.723

$ 12.401

$ 424,50633.124

s (5.906) $ 418,60033.124

TaxesMiscellaneous

451.724 449.322 2.402457.630 (5.906)Total revenues

429.2792.500

31,1161.454

86 398,1631.046

398,0771.046



Capital outlay

399.209 431.779 32.570399.123 86Total expenditures

Excess (deficiency) of revenuesover expenditures 17,543 34,972(5,992) 52,51558,507

20,964(45.000)

20,964(45.000)

OTHER FINANCING SOURCES(USES):Operating transfers inOperating transfers (out)

20,964(45.000)

~,~

Excess (deficiency) of revenuesover expenditures and other(uses). 28,479 (6,493) 34,97234,471 (5,992)

39.513 39.513Fund balance, June 30, 2000 39.513

$ 34.972$ (5.992) $ 67.992 $ 33.020Fund balance, June 30, 2001 $ 73.984



-30-

Schedule A- 7STATE OF NEW MEXICO

CITY OF CARLSBAD

AIRPORT SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual BudeetAdiustments

REVENUES:State grantsFederal grantsMiscellaneous

36,960667,271

s ( 11,545)(285,458)

$ $ 25,415381,813

$$ 25,415381,813

...

!407.228 704.231 (297.003)407.228Total revenues

EXPENDITURES:Public worksCapital outlay

51,548263.404

51,548687.642

-424.238

~'4

-424.238

739.190 314.952424.238Total expenditures 424.238

Excess (deficiency) of revenuesover expenditures (17.010) (34,959) 17,949(17,010)

34.95934.959

OTHER FINANCING SOURCES(USES):Operating transfers in (out) 34.959

Excess (deficiency) of revenuesover expenditures and other(uses)* 17,94917,949.7,949

22 aFund balance, June 30, 2000

$ 17.949$ 17.951 $ 1.Fund balance, June 30, 2001 $ 17.951 s



-31-


CITY OF CARLSBAD

CEMETERY SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

Basis.Actual BudgetAdiustments

REVENUES:

Charges for servicesMiscellaneous

$ 144,154 s $~Total revenues 144.154 144.154 144.154


Public health and welfare 153.521 9.292 162.813 162.814 ...! ~

Exctss (deficiency) of revenuesover expenditures ( 9,367) (9,292) (18,659) (18,660)

OTHER FINANCING SOURCES(US~):Operating transfers in 15.000 15.000 15.000

Excess (deficiency) of revenuesover expenditures and other(uses)- 5,633 (9,292) (3,659) (3,660)


Fund balance, June 30, 2001 $ 9.869 $ (9.292) $ 577 $ 576 $ 1



-32-


CITY OF CARLSBAD

EMERGENCY MEDICAL SERVICES SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary


REVENUES:

$ 17.293State and county grants s $ 17.293 $ 17.293 s.EXPENDITURES:

Current:Public safety

Capital outlay11,7135.580

11,7135.580

11,7135.580

--,*

Total expenditures 17.293 17.293 17.293

Excess (deficiency) of revenuesover expenditures.

Fund balance, June 30, 2000

Fund balance, June 30, 2001 s $ s $ s


The Accompanying Notes are an Integral Part of These Financial Statement

-33-

Schedule A-tOSTATE OF NEW MEXICO

CITY OF CARLSBAD

LOCAL GOVERNMENT CORRECTIONS SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual Bud2etAdiustments

REVENUES:

Charges for services $ 56.218 s $ 56.218 $ 56218 $

EXPENDITURES:Cuuent:

Public safety 222.711 222.711 222.712 , ,I

Excess (deficiency) of revenuesover expenditures (166,493) (166,493) (166,494)

OTHER FINANCING SOURCES(USES):Operating transfers in 166.000 166.000 166.000

Excess (deficiency) of revenuesand other financing sourcesover expenditures. ( 493) 493) ( 494)


Fund balance, June 30, 2001 $ 4.603 $ $ 4.603 $ 4.602 $ .1



-34-

Schedule A-IISTATE OF NEW MEXICO

CITY OF CARLSBAD

LAW ENFORCEMENT PROTECTION SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual Adjustments Bud2et

REVENUES:

$ 57.600 $State and county grants $ 57.600 $ 57.600 s.EXPENDITURES:

Current:Public safety


25,52232.078

25,52232.078~


Excess (deficiency) of revenuesover expenditures.


Fund balance, June 30, 2001 $ s $ s $



-35-


CITY OF CARLS BAD

RETIRED SENIOR VOLUNTEER SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance. Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual Adjustments Budget

REVENUES:

$ 4.01139.467

sState and county grantsFederal grants

$ 4,01139.467

$ 3,91837.949

s 931.518

""'"'~,~'

Total revenues 43.478 43.478 41.867 1.611


Public health and welfareCapital outlay

41,857 164- 42,021 42,474 453

Total expenditures 41.857 164 42.021 42.474 453

Excess (deficiency) of revenuesover expenditures * 1,621 (164) ,457 (607) 2,064


Fund balance, June 30, 2001 $ 6.234 $ (164) S 6.070 $ 4.006 $ 2.064



-36-

Schedule A-I3STATE OF NEW MEXICO

CITY OF CARLSBAD

JOB TRAINING PARTNERSHIP ACT SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



Variance -Budgetary


REVENUES:

Federal grantsMiscellaneous

$ $ $

Total revenues 85.679 85.679 85.679


Public health and welfareCapital outlay

87,841 :Total expenditures 87.841 87.841 87.841



Excess (deficiency) of revenuesand other financing sourcesover expenditures. (1.162) (1,162) (1,162)


Fund balance, June 30, 2001 $ s $ s s



-37-


CITY OF CARLSBAD

PARK IMPROVEMENT SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

Basis. .

AdjustmentsActual Bud2et

REVENUES:

$ 46,222694

sState and county grantsMiscellaneous

$ 46.222694

$ 46,221694

$~Total revenues 46.916 46.916 46.915 1

20,09720.184




24,54919.928

4,4521

-(257)

40.281 (257)Total expenditures 40.024 44.477 4.4S~

Excess (deficiency) of revenuesover expenditures 6.635 257 6,892 2,438 4,454


Excess (deficiency) of revenuesand other financing sourcesover expenditures. 6,635 257 6,892 2,438 4,454


Fund balance, June 30, 2001 $ 22.188 s 1.:11 $ 22.445 $ 17.991 $ 4.454



-38-


CITY OF CARLSBAD

STREET IMPROVEMENT SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual Adjustments. Bud2et

REVENUES:

$ 491.06751.62826.438

$ 9,994 $ 501,06151,62826.438

$ 501,06051,62826.437

$ 1.

-

..",1

State shared taxesState and county grantsMiscellaneous

Total revenues 569.133 9.994 579.127 579.125 1

EXPENDITURES:

Public worksCapital outlay

349,267535.912

4,229 353,496535.912

411,435535.913

57,9391

Total expenditures 885.179 4.229 889.408 947.348 57.940

Excess (deficiency) of revenuesover expenditures (316,046) S~76S (310,281) (368,223) 57,942

OTHER FINANCING SOURCES(USES):Operating transfers (out) ( 24.100) ( 24.100) ( 24.100)

Excess (deficiency) of revenuesand other fmancing sourcesover expenditures and other(uses). (340,146) S.76S (334,381) (392.323) 57,942


Fund balance, June 30, 2001 $ 212.025 $ 5.765 $ 217.790 $ 159.848 $ 57.942



-39-


CITY OF CARLSBAD

COMMUNITY DEVELOPMENT SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

Basis BudgetActual Adiusbnents

REVENUES:

S 105.984 $ $ 105.984 $ 105.984 sFederal grants

EXPENDITURES:Public health & welfareCapital outlay

24,100105.984

24,100105.984

24,100105.984

--130.084Total expenditures 130.084 130.084

Excess (deficiency) of revenuesover expenditmes (24,100) (24,100) (24,100)

24.100

OTHER FINANCING SOURCES(USES):Operating transfers in 24.100 24.100

Excess (deficiency) of revenuesand other financing sourcesover expenditures and other(uses).


$Fund balance, June 30, 2001 s $ $ $

. Represents the cash balance allocation on the budgetary basis


-40-


CITY OF CARLSBAD

TRAFFIC SAFETY SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual Bud2etAd1ustments

REVE~:

s 2,475152

$s 2,475lS2

s $ 2,475152

Charges for servicesMiscellaneous

-

2.627 2.627Total revenues 2.627

EXPENDITURES:Capital outlay 20.34720.347 20.347

Excess (deficiency) of revenuesover expenditures (17,720) (17,720)(17,720)

( 18), 18) ( 18)

OTHER FINANCING SOURCES(USES):Operating transfers in (out)

Excess (deficiency) of revenuesand other financing soun:esover expenditures and other(uses)- (17,738) (17,738) (17.738)

17.73817.738 17.738Fund balance, June 30, 2000

s s s $Fund balance, June 30, 2001 s



-41-

Schedule A-I8STATE OF NEW MEXICO

CITY OF CARLSBAD

NARCOTICS FORFEITURE SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual Bud2etAdiusbnents

REVENUES:

$ s$ $sState and county grantsMiscellaneous

-1

-6.506

-6.505

-6.506

-

6.506 6.505 tTotal revenues 6.506

in2.008 2.0072.008


Public safety

Excess (deficiency) of revenuesover expenditures . 4,498 4,4984,498

14.465 14.46S14.465Fund balance, June 30, 2000

S 18.963 $ 18.963 $$ 18.963 $Fund balance, June 30, 2001



-42-


CITY OF CARLSBAD

SPECIAL POLICE PROGRAMS SPECIAL REVENUE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

Basis 13ud2etActual Adjustments

REVENUES:

S 2.717 $ 1.500 S 1.217$ 2.717 $State and county grants

3.4701.530 S.(MK)


Public safety 1.530

Excess (deficiency) of revenuesover expenditw'es . (3,500) 4,6871,1871,187


$ 1.472 $ 4.687$ $ 6.159Fund balance, June 30, 2001 $ 6.159



-43-

DEBT SERVICE FUNDS

1993 SAD No.1 Water & Sewer Improvement BondsTo accumulate monies for payment of $31 0,000, 5.5%, revenue bonds due in annual installments of$10,OOO to $55,000 throughOctober 1, 2003, issued to finance the construction of water and sewer lines for Special Assessment District No.1.

1994 Sales Tax Revenue BondsTo accumulate monies for payment of $2,780,000, 4.25% - 6.3%, revenue bonds due in annual installments of $115,0000 to$285,000 through October 1,2010, issued to finance capital improvements to various City facilities.

1993 Sales Tax Revenue BondsTo accumulate monies for payment of $2,355,000 revenue bonds, 2.85% to 5.1 %. payable in annual installments beginning in1993 of$IOO,OOO to $475,000 through October 1,2000, for the purpose of refunding 1987 series refunding revenue bonds andprovide additional funds for capital improvements and equipment

NMFA Debt Service FundTo account for monies for payment of $158,000 note, 5.466%, payable in annual installments beginning in 1996 of$32,316 to$35,996 through August 1,2000, for the purpose ofpurcbasing a 1250 GPM Pumper for Carlsbad Fire Department.

-44-

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Schedule B-3STATE OF NEW MEXICO

CITY OF CARLSBAD

1993 SAD NO.1 BONDS DEBT SERVICE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

Basis Bud2etActual Adjustments

REVENUES:

$ 26.000 $ (2.807)$ 23.193$ 23.193 sMiscellaneous

EXPENDITURES:Debt service:

PrincipalInterest

25,0004.401

25,0004.401

25,0004.401

29.40129.40129.401Total expenditures

Excess (deficiency) of revenuesover expenditures . (2,807)(3,401)(6,208)(6,208)


$ 251.755 $ (2.807)$ 248.948$ 248.948 $Fund balance, June 30, 2001

. Represents the cash balance allocation on the budgetary basis


.A7-


CrrY OF CARLSBAD

1994 SALES TAX BONDS DEBT SERVICE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

Basis Bud2etActual Adjustments

REVENUES:

s $ 13.864 $ $ 13.864Miscellaneous $ 13.864


PrincipalInterest

145,000122.934

145,000122.934

145,000122.934

-~

267.934 267.934267.934Tota) expenditures

Excess (deficiency) of revenuesover expenditures 13,864(254,070) (254,070) (267,934)

265.323 265.323

OTHER FINANCING SOURCES(USES):Operating transfers in 265.323

Excess (deficiency) of revenuesand other fmancing sources overexpenditures and other (uses). ( 2,611) 13,86411,253 11,253


$ 324.949 $ 13.864$ 338.813 $ $ 338.813Fund balance, June 30,2001

. Represents the cash t.lance allocation on the budgetary basis


-48-

Schedule B-SSTATE OF NEW MEXICO

CITY OF CARISBAD

1993 SALES TAX BONDS DEBT SERVICE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary


REVENUES:

Miscellaneous $ 5.236 s $ 5.236 $ 5.236 $


PrincipalInterest

250,0006.375

250,0006.375

250,0006.375

~~e




Excess (deficiency) of revenuesand other financing sources overexpenditures and othcr (uses). (171,1~ (171,167) (171,167)


Fund balance, June 30, 2001 $ $ $ $ s



~Q-


CITY OF CARLSBAD

NMFA DEBT SERVICE FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary


REVENUES:

State grants $ 35.996 $ $ 35.996 $ 35.996 s


PrincipalInterest

35.000996

35,000996

35,000996

,-C"'C~


Excess (deficiency) of revenuesover expenditures


Excess (deficiency) of revenuesand other financing sources overexpenditures and other (uses).


Fund balance, June 30, 2001 .$ $ $ s s



-50-

CAPITAL PROJECTS FUNDS

Water System Improvement FundTo account for the fmancing and acquisition of water system facilities for the City of Carlsbad.

Project Impact FoodTo account for federal grants used for equipment and capital improvements used in implementation of a sustained pre-disaster

mitigation program.

State Legislative FundTo account for various state grants used for various capital improvement projects in the City of Carlsbad.

Sandpoint Landfill FundTo account for the fmancing and cost of constructing the Sandpoint Landfill site east of Carlsbad, New Mexico.

Sewer System Improvement FundTo account for the fmancing and acquisition of sewer system facilities for the City of Carlsbad.

Erosion Controlffire Recycle FundTo account for efficient tracking of the Tire Recycling Project. This fund operates through a NMED Grant reimbursement.

Old Carlsbad Landfill Closure FundTo account for efficient tracking of closure costs and County contributions.

-51-

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Schedule C-3ST ATE OF NEW MEXICO

CITY OF CARLSBAD

WATER SYSTEM IMPROVEMENT CAPITAL PROJECTS FUNDSchedule of Revenues, Expenditures and Cbanges in Fund Balance - Actual and Budget (Non-GAAP Basis)

For tbe Year Ended June 30, 2001


VarianceBudgetary


REVENUES:

$ 3.353 $ S 3.3.53 $ 3.352 S 1Miscellaneous



21,582163.563

21,582163.563

22,250163.564

6681

-.~

Total expenditures 185.145 185.145 185.814 669

Excess (deficiency) of revenuesover expenditures (181,792) (181,792) (182,462) 670

OTHER FINANCING SOURCFS(USES):Operating transfers in

Excess (deficiency) of revenuesand other financing sources overexpenditures and other (uses). (181,792) (181,792) (182.462) 670


Fund balance, June 30, 2001 $ 9.854 s $ 9.854 S 9.184 S 670



-54-

Schedule C-4STATE OF NEW MEXICO

CITY OF CARLSBAD

PROJECT IMP ACT CAPITAL PROJECTS FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual Adjustments Budl!et

REVENUES:Federal grantsMiscellaneous

s 19,0769.500

s $ 19,0769.500

s 293,2959.500

$ (274,219)...

~

Total revenues 28.576 28.576 302.795 (274.219)

EXPENDITURES:Capital outlay 71.985 71.985 293.295 221.310

Total expenditures 71.985 71.985 293.295 221.310

Excess (deficiency) of revenuesover expenditures (43,409) (43,409) 9,500 (52,909)


Fund balance, June 30, 2001 $ (43.409) $ $ (43.409) $ 9.500 $ (52.909)



-55-


CITY OF CARLSBAD

STATE LEGISLATIVE CAPITAL PROJECTS FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)

For the Year Ended June 30,2001


VarianceBudgetary

BasisActual Adjustments Budget

REVENUES:State grantsMiscellaneous

$ 347,899 $ (146,942) $ 200,957 $ 1,264,651 $(1,063,694)

Total revenues 347.899 (146.942) 200.951 1.264.651 (1.063.694)



4,2611.250.792

4,261986.400

-337.514

-

( 73.115)-

264.399

Total expenditures 337.514 (7~.11S) 264.399 1.255.060 990.661

Excess (deficiency) of revenuesover expenditures 10,385 73,827) ( 63,442) 9,591 ( 73.033)

OTHER FINANCING SOURCES(USES):Operating transfers inOperating transfers (out)

1,322(2.592)

1,322( 2.592)

1,322( 2.592)

~

:;

Excess (deficiency) of revenuesand other fmancing sources overexpenditures and other (uses). 9,115 ( 73,827) ( 64,712) 8,321 ( 73,033)

Fund balance, June 30, 2000 (8.136) ( 8.136) ( 8.136)

Fund balance, June 30, 2001 $ 979 $ (73.827) $ ( 72.848) s ill $ (73.033)



-56-


CITY OF CARLSBAD

SANDPOINT LANDFILL CAPITAL PROJECTS FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

Basis. Actual

Adjustments Bud2et

REVENUES:

$State and county grantsMiscellaneous

4786.939

s $ 4786.939

$ 1 t.O2S $ (10,547)6.939

~~

Total revenues 7.417 7.417 11.025 (3.608)



-21.968

t;4'

-21.968

-22.050

-82

Total expenditures 21.968 21.968 22.050 82

Excess (deficiency) of revenuesover expenditures (14,551) (14,551) (11,025) (3,526)


Excess (deficiency) of revenuesand other fmancing sourcesover expenditures. (14,551) (14,551) (11,025) (3,526)


Fund balance, June 30, 2001 $ 97.428 $ $ 97.428 $ 100.954 $ (3.526)



-57-


CITY OF CARLSBAD

SEWER SYSTEM IMPROVEMENT CAPITAL PROJECTS FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)


Favorable(Unfavo~ble )

VarianceBudgetary

BasisActual BudgetAdjustments

REVENUES:

$State and county grantsMiscellaneous

$ s $ $: m L~

Total revenues



14,716142.697

14,716142.697

25,000142.697

10,284:Total expenditures 157.413 157.413 167.697 10.284

Excess (deficiency) of revenuesover expenditures (157,413) (157,413) (167,697) 10,284


Excess (deficiency) of revenues andother financing sources overexpenditures and other (uses). 48,287 48,287 38,003 10,284

Fund balance, June 30, 2000 337 337 ~31

Fund balance, June 30, 2001 $ 48.624 s $ 48.624 $ 38.340 $ 10.284



-58-


CITY OF CARLSBAD

EROSION CONTROUTIRE RECYCLE CAPITAL PROJECTS FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



VarianceBudgetary

BasisActual BudgetAdiustinents

REVENUES:

sState and county grantsMiscellaneous

Total revenues 9.950 9.950 82.875 (12.925)


Public works 54.288 (4.979) 49.309 96.354 47.045

Excess (deficiency) of revenuesover expenditures - (44,338) 4,979 (39,359) (13,479) (25,880)


Fund balance, June 30, 2001 $ (30.858) $ 4.979 $ (25.879) $ 1 $ _(25.880)



-59-


CITY OF CARLSBAD

OLD CARLSBAD LANDFILL CLOSURE CAPITAL PROJECTS FUNDSchedule of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Non-GAAP Basis)



Variance}::Judgetary

BasisActual Budl!etAdiustments

REVENUES:

$ 48,53314.321

$ $ 48.53314.321

$ 100,000 s (51,467)14.321

State and county grantsMiscellaneous

...~

62.854 62.854 100.000 (37.146)Total revenues

174.250 92.558


Public works 81.692 81.692

Excess (deficiency) of revenuesover expenditures (18,838) (18,838) (74,250) 55,412

100.000 100.000

OTHER FINANCING SOURCES(USES):Operating transfers in 100.000

Excess (deficiency) of revenues andother financing sources overexpenditures and other (uses). 25,750 55,41281,162 81,162

299.976 299.976 299.976Fund balance, June 30, 2000

$ 381.138 $ 55.412Fund balance, June 30,2001 $ 381.138 $ s 325.726



-60-

ENTERPRISE FUNDS

Joint Water and Sewer FundTo account for the provision of water and sewer services to the residents of the City. All activities necessary to provide suchservices are accounted for in this fund.

Solid Waste Disposal FundTo account for the provisions of garbage collection services to the residents of the City. All octivities necessary to provide suchservices are accounted for in this fund.

Museum Gift Shop FundThe City established this fund so the museum committee could continue operating the gift shop.

Municipal Transit FundThe City established this fund after the contractor that ran the taxi service tenninated the contract to provide the City withtransportation services.

-61-

STATEMENT D-lSTATE OF NEW MEXICO

CITY OF CARLSBAD

ENTERPRISE FUNDSCOMBINING BALANCE SHEET

Jane 30, 2001

JointWater and

~

SolidWaste

DisoosalMunicipal

TransitGiftShOt! Total

S 4,048,484793,990

252.4055.094.879

18,283,6846.622.182

24.905.866

S 1,081,313146,8.592.5,364

s s $ 5,179,932940,84938,829

252.4056.412.015

18,966,2656.743.235

25.709.500

1.253.536

682,581121.053803.634

28.801

13,465

21,334

21.334

...

,..,

ASSETS AND OTHER DEBITS:Current assets:

Cash and certificates of depositAccounts receivable - net

Due from other govenuncntsInventory, at cost

Total current assetsRestricted assets:

CashInvestments

Total restricted assets

Property, plant and equipment:Land, buildings, and equipment

(net of depreciation) 20.892.183

$ 50.892.928

2.020.909

s 4.078.072

148.525

190.791

23.061.617

$55.183.132Total assets s $ 21.334

s 96,40299,141

$ 8,812805,783

s 1,5735,0887,002

s s 106,787910,012

7,002'~~

127,704 127,704

477,91379,405

855.0002.563.823

LIABILIT~, EQUITY AND OTHER CREDITS:Current liabilities:

Account payableAccrued expensesDue to other fundsCurrent portion of capital lease

and loanPayable from restricted assets:

Customer depositsAccrued bond interestCunalt portion of bonds

Total current UabUities

477,91373,367

745.0001.491.823

-

6,038110.000

1.058.337$

-

18,267,673

18.267.67319.759.496

500,000266.562766.562

1.824.899

18,767,673266.562

19.034.23521.598.058

""",

~

Long-tenn debt (net ofunamonizeddiscounts and cunent portion):

Bonds payableCapital lease and loans payable

Total long-term debtTotalliabiJities

18,785,812 2,217,325 78,736 21,081,873

7,091,8285.255.792

31.133.432

$ 50.892.928

532,024(496.169)

2.253.180

S 4.078.079

6,37514.95921.334

21.334

7,630,2274.872.974

33.585.074

S55.183.132

-98.392

177.128

190.791

Equity and other credits:Contributed capitalRetained earnings:

ReservedUnreserved (deficit)

Total equity and otber credits

Total UabDltles, equity, aod other credits $ s


-62-

STATEMENT 0-1STATE OF NEW MEXICO

CITY OFCARLSBAD

ENTERPRISE FUNDSCOMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY


JointWater and

Sewer

SolidWaste

DisoosalMunicipal

TransitGiftShoo Total

S 6,278,832 $ 2,508,582402,614

s 62,073

169.960

232.033

s 11,768 S 8,861,255402,614169.960

9.433.829

OPERAT1NG REVENUES:Charges for servicesState and county grantsFederal grants

Total operatiug reveDues

OPERATING EXPENSES:

6.278.832 2.911.196 11.768

Personal servicesPower and fuelGeneral insuranceOther operating expenses

Depreciation

1,750,983643,103204,200

1,209,287706.449

4.514.022

1,764,810

1,055,1194,990

204,2001,183,884

523.383

2.971.576

( 60,380)

167,072

5,00046,55531.488

250.115

( 18,082)

2,973,174648,093413,400

2,446,1401.261.320

7.742.127

1,691,702

-

6,414

Total openting expenses 6.414

5,354Operating in<:ome (k>ss)

NON-OPERATING INCOME (EXPENSE):

276,&46203,414126,710( 72,094)

160

276,846203,414

1,801,511(1,011,216)

53.8981.324.453

3,016,155

-1,674,057(939,122)

50.310785.245

2,550,055

-

592

3.4284.020

( 14,062)

-152

Tax revenueRentInterest incomeInterest expenseMiscellaneous and gain on sale of assetsTotal non-operatiDg income (expense) 535.036

474,656

152

5,506Income (loss) before transfers

Operating transfers in (out) 0.040.949)

1,509,106

(496.798)

( 22,142)

598

( 13,464)

(1.537.149)

1,479,006Net income (loss) 5,506

~Dt year's contributed capital 328,602

29.295.724

S 31.133.432

43,018 371,620

Equity and other credits, June 30, 2000 2.275.322

S 2.253.180

147.S74

177.128

15.828

21.334

31.734.448

S 33.585.074Equity and other credits, June 30, 2001 s s

The Accompanying Notes are an Integral Part ofTh~ Financial Statements

-63-

STATEMENT 0.3STATE OF NEW MEXICO

CITY OF CARLSBAD

ENTERPRISE FUNDSCOMBINING STATEMENT OF CASH FLOWS


JointWater and

Sewer

SolidWaste

DisPosalMunicipal

TransitGiftShOD Total

S 6,303,096(2,195,238)0.729.698)

2.378.160

$ 2,916,792(1,279,244)0.042.727)

594.821

2~9,133( 51,492)065.659)

21.982

$ s 11,768( 6,414)

S 9,470,789(3,532,388)(2.938.084)

3.000.317S.3S4

276,846

( 496.798)

( 219.952)

276,84625,910

0.537.149)

0.234.39~)

-25,910

(1.040.949)

(1.015.039)

-

598

598

50,310328,602

( 573,082)(1.624.002)

(1,818.172)

160

( 146,303)( 497.635)

( 643.778)

3,42843,01876,636)

53,898371,620

( 796,021)(2.121.637)

Q.492.140)

-

( 30.190)

CASH FLOWS FROM OPERA nNG ACTIVITIES:Cash received from customers and operating grantsCash payments to suppliersCash payments to employees

Net cash provided (med) byoperatiDg activities

CASH FLOWS FROM NON CAPITAL FINANCINGACTIVITIES:

Taxes receivedCustomer deposits (net)Operating transfers in (out)

Net cash provided (med) bynoncapltal ftuaucing activities

CASH FLOWS FROM CAPITAL FINANCINGACTIVITIES:

Sale of assets and miscellaneousContributed capitalAcquisition of capital assetsInterest and principal paid on bonds and leases

Net cash provided (med) bycapital financing activities

CASH FLOWS FROM INVESTING ACTIVITIES:Interest and rents received (net) 1.674.057

1,219,006

330.124

61,215

592

( 7,018)

IS2

S,s06

2.004.9~~

1,278,709Net increase (decrease) in cash

Cash and equivalents at beginning of year

Cash and equivalents at end of year

27,735.344

S 28,954.350

1.823.732

$ 1.884.947

35.819

28.801

15.828

21.334

29.610.723

S 30.889.432s $

S 1,764,810 S (60,380) s (18,082) s S,3S4 S 1,691,702

706,449242642,731

(141,379)21.285

S 2.378.160

523,3835,596

( 1,515)127.737

594.821

31,4887,100

631.413

21.982

1,261,32036,9602,731

(142,831)150.435

S 3.000.317

-

RECONCILIAnON OF OPERATING INCOME TOCASH PROVIDED BY OPERATING ACTIVInES:

Operating income (loss)Adjustments to reconcile operating income(toss) to net cash provided by opentingactivities:

Depreciation(Inc~) decrease in receivables(Inc~) decrease in inventoryIncrease (decrease) in accounts payableIncrease (decrease) in accrued expenses

Net cash provided (used) by operating activities s s S S.3S4


-64-

INTERNAL SERVICE FUNDS

General Insurance FundTo account for the costs of providing insurance coverage and liability claims against the City. Such costs are billed to the otherdepartments at actual cost.

Group Healtb Insurauce FundTo account for the costs of providing Group Health benefits to City employees. Such costs are billed to employees and the otherdepartments based on a minimum preniium plan for eligible participants. .

Compoter Lease Equipment FundTo account for the costs of providing computer equipment to various departments of die City. Operating transfers are made from thedepartments to cover the cost of leasing the equipment

-65-

STATEMENT E-lST ATE OF NEW MEXICO

CITYOFCARLSBAD

INTERNAL SERVICE FUNDSCOMBINING BALANCE SHEET

June 30, 2001

General

~ce

Group HealthInsurance

ComputerLease .I.Q!!!.

ASSETS AND OTHER DEBITS

$ 626,205Cash and certificates of depositAccounts receivable

$ ,324,526 $ ,648 s ,952,379

Total Assets and Other Debits s 626.205 $ 1.324.526 $ 1.648 $ 1.952.379

LIABILITIES, EQUITY AND OTHER CREDITS

Liabilities:Accounts payable $ 19,062 s s 3,622 s 22,684

( 1,974) ( 1,974)1.931.669

-607.143

-1.324.526

Equity and Other Credits:Fund balance:

UnreservedReserved for insurance claims

Total Liabilities and Fund Equity $ 626.205 $ 1.324.526 $ 1.648 $ 1.952.379


-66-

STATEMENT E-2STATE OF NEW MEXICO

CITY OF CARLSBAD

INTERNAL SERVICE FUNDSCOMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY

June 30, 2001

GeneralInsurance

Group Health

Insurance.Computer

Lease Total

OPERATING REVENUES:

Charges for services $ 617.600 $ 1.678.488 $ $ 2.296.088

OPERATING EXPENSES:

328,313324,653

328,3131,453,678

43.468

-1,129,025

-

43.468

General insuranceWorker's compensation and health benefitsOther operating expenses

Total operating expenses 652.966 1.129.025 43.468 1.825.459

Operating income (loss) ( 35,366) 549,463 (43,468) 470,629

NON-OPERATING INCOME (EXPENSE):Interest income 42.297 39.854 82.151

Operating transfers in (out) (262.937) 42.630 (220.307)

Net income (loss) 6,931 326,380 ( 838) 332,473

Equity and other credits, June 30, 2000 600.212 998.146 ( 1.136) 1.597.222

Equity and other credits, June 30, 2001 $ 607.143 $ 1.324.526 $ ( 1.974) $ 1.929.695


-67-

STATEMENT E-3STATE OF NEW MEXICO

CITY OF CARLSBAD

INTERNAL SERVICE FUNDSCOMBINING STATEMENT OF CASH FLOWS


GeneralInsurance

Group HealthInsurance

ComputerLease Total

s 617,600(328,313)(333.825)

$ 1,678,488

(1.129.025}

$ $ 2,296,088( 371,781)0.462.850)

-( 43,468)

CASH FLOWS FROM OPERATING ACTIVITIES:Cash received from customersCash payments to suppliersCash payments to employees

Net cash provided (used) byoperating activities ( 44.538) 549.463 ( 43.468) 461.457

CASH FLOWS FROM NON CAPITAL FINANCINGACTIVITIES:

Operating transfers in (out) ( 262.937) 42.630 ( 220.307)

CASH FLOWS FROM INVESTING ACTIVITIES:Interest received 42.297 39.854 82.151

Net increase (decrease) in cash 2,241) 326,380 838)( 323,301

Cash at beginning of year 628.446 998.146 2.486 1.629.078

Cash at end of year $ 626.205 S 1.324.526 $ 1.648 $ 1.952.379

$ (35.366) $ 549,463 $ (43,468) $ 470,629

Reconciliation of operating income to cash providedby operating activities:

Operating income (loss)Adjustments to reconcile operating income

(loss) to net cash provided by operatingactivities:

(Increase) decrease in accounts receivableIncrease (decrease) in accounts payable

-( 9.172) ~~

~~

-( 9.172)

Net cash provided (used) by operating activities $ ( 44.538) $ 549.463 $ (43.468) S 461.457


-68-

GENERAL FIXED ASSETS ACCOUNT GROUP

To account for fIXed assets not used in proprietary fund operations.

-69-

SCHEDULE F-lSTATE OF NEW MEXICO

CIlY OF CARLSBAD

Schcdule of Changes in General Fixed AssetsFor the Year Ended June 30,2001

BalanceJune 30. 2000

BalanceJune 30. 2001Additions Deletions

s 1,418,49224,561,368

43,5217,824,349

17,832,074102.897

$ $ $ 1,418,49225,084,957

43,5218,308,793

18,453,446102.897

-523,589

593,442621,372

-

108,998

Land and land rightsStructures and improvementsParking lotsEquipment and fIXturesPaving improvementsParking meters

$ 51.782.701 $ 1.738.403 $ 108.998 $ 53.412.106

s 229,86020,34848,9004,359

424,23910,4831,0471,100

18,59420,184

322,238531,067105.984

Additions by source:General fundTraffic Safety FundE-911 FundFire protection fundAirport improvement fundRecreation FundLodgers Tax FundEmergency medical service fundLaw enforcement protection fundPark improvement fundState legislative capital improvements fundStreet improvement fundCommunity development fund

$ 1.738.403


-70-

SUPPLEMENTARY DATA

..71-

SCHEDULElSTATE OF NEW MEXICO

CITY OF CARLSBAD

1993 SAD Water and Sanitary Sewer Improvements BondsJune 30, 2001

Due Date Interest PrinciRal Total

SAD Series of December 1, 1993Original issue $310,000Interest rate 5.5%

10-1-014-1-02

10-1-024-1-03

10-1-03

$ 1,6501,375

963688275

$ 10,00015,00010,00015,00010.000

$ 11,65016,37510,96315,68810.275

$ 4.951 $ 60.000 $ 64.951

-72-

SCHEDULE 2STATE OF NEW MEXICO

CITY OF CARLSBAD

1994 Sales Tax Revenue BondsJune 30, 2001

Due Date Princi~alInterest Total

Sales Tax Revenue BondsSeries of November 1, 1994Original issue $2,780,000Interest rate 4.25% - 6.3%

10-1-014-1-02

10-1-024-1-03

10-1-034-1-04

10-1-044-1-05

10-1-054-1-06

10-1-064-1-07

10-1-074-1-08

10-1-084-1-09

10-1-094-1-10

10-1-10

$ 59,52855,44055,44051,00051,00046,24046,24041,11041,11035,60035,60029,70029,70023,40023,40016,53816,5378,9788.977

$ 150,000

160,000

170,000

180,000

190,000

200,000

210,000

225,000

240,000

285.000

$ 209,52855,440

215,44051,000

221,00046,240

226,24041,110

231,11035,600

235,60029,700

239,70023,400

248,40016,538

256,5378,978

293.977

$ 675.538 $ 2.010.000 $ 2.685.538

-73-


CITY OF CARLSBAD

Environmental Services Gross Receipts Tax Revenue BondsJune 30, 2001

Due Date PrincioaIInterest Total

Gross Receipts Tax Revenue BondsSeries of December 1,1994Original issue $1,165,000Interest rate 5.0% - 6.6%

12-1-016-1-02

12-1-026-1-03

12-1-036-1-04

12-1-046-1-05

12-1-056-1-06

$ 19,54819,54716,13816,13712,51512,5158,5158,5154,2904.290

$ $ 19.548129.54716.138

131.13712.515

137.5158.515

138.5154.290

134.290

-110,000

115,000

125,000

130,000

130.000

$ 122.010 $ 610.000 $ 732.010

-74.


CITY OF CARLSBAD

Joint Water and SewerRefunding and Improvement Revenue Bonds

June 30, 2001

DueDate Princi~alInterest ~

Refunding and Improvement Revenue BondsSeries of November 1, 1998 .Original issue $21,370,000Interest rate 4.0% - 4.75%

12-01-0106-01-0212-01-0206-01-0312-01-0306-01-0412-01-0406-01-0512-01-0506-01-0612-01-0606-01-0712-01-0706-01-0812-01-0806-01-0912-01-0906-01-1012-01-1006-01-1112-01-1106-01-1212-01-1206-01-1312-01-1306-01-1412-01-1406-01-1512-01-1506-01-1612-01-1606-01-1712-01-1706-01-1812-01-1806-01-19

$ 440,201440,201425,301425,301409,801409,801393,701393,701376,901376,901358,414358,414339,183339,183318,995318,995297,818297,818275,158275,158250,970250,970225,095225,095197,600197,600168,388168,388137,750137,750105,688105,68872,08172,08136,93136.931

$ s 440,2011,185,201

425,3011,200,301

409,8011,214,801

393,7011,233,701

376,9011,246,901

358,4141,263,414

339,1831,289,183

318,9951,303,995

297,8181,327,818

275,1581,350,158

250,9701,375,970

225,0951,395,095

197,6001,427,600

168,3881,458,388

137,7501,487,750

105,6881,520,688

72,0811,552,081

36,9311.591.931

-745,000

775,000

805,000

840,000

870,000

905,000

950,000

985,000

1,030,000

1,075,000

1,125,000

1,170,000

1,230,000

1,290,000

1,350,000

1,415,000

1,480,000

1.555.000

$ 9.659.95~ $ 19.595.000 $ 29.254.952

-75-

SCHEDULESSTATE OF NEW MEXICO

CITY OF CARLSBAD

JOINT WATER AND SEWER FUNDSchedule of Cash Receipts and Disbursements - Restricted Accounts

Year Ended June 30,2001

CustomerD~osits

Debt BondService Acauisition

PennanentFund Total

Cash and equivalents, beginning of year $ 452.003 $ 150.572 $ 16.865.282 $ 6.671.909 S 24.139.773

1,624,0031,465,272

25.9103.115.185

-

25.91025.910

Add cash receipts:Transfer inInterest incomeIncrease in customer deposits

-419,919

419.919

Less cash disbursements:Expenditures for construction servicesBond principal paymentsBond interest payments

725,089715,000909.003

2.349.092

- -715,000909.003

1.624.003

Cash and equivalents, end of year $ 477.913 $ 164.076 $ 17.172.049 $ 7.091.828 $ 24.905.866

-76-


CITY OF CARLSBAD

Property Insurance and Surety Bond CoverageJune 30,2001

Policy/BondNumberExI!. Date Comoanv Covera2e COy. Amount

06/02/02 American EmployersInsurance Company

CU-AR-713013S Damage BondRight of Way

$ 2,500

07/01/01 St. Paul Insurance Co. - CIA GPO91 00466 Blanket Building!Contents

32,473,000(Replacement)

07/01/01 St Paul Insurance Co. - CIA GPO9100466 2,404,005(Limit)

Conttactors Equipment

07/01/01 St. Paul Insurance Co. - CIA GPO9100466 Fine Arts 2,037,865

07/01/01 St Paul Insurance Co. - CIA GPO91 00466 Electronic DataProcessing

357,851

07/01/01 St. Paul Insurance Co. - CIA GPO9100466 Money & Securities 10,000

07/01/01 Sl Paul Insurance Co. - CIA GPO9 1 00466 Forgery & Alterations 10,000

07/01/01 St Paul Insurance Co. - CIA GPO9100466 Robbery & Safe Burglary 10,000

07/01/01 St Paul Insurance Co. - CIA GP09100466 General Liability 2,000,000

07/01/01 St Paul Insurance Co. - CIA GP09100466 Boiler & Machinery 250,000

07/01/01 St Paul Insurance Co. - CIA GPO9100466 Auto Liability 1,050,000

07/01/01 St Paul Insurance Co. - CIA GP09 1 00466 Blanket Emp. DishonestyBond

10,000

07/01/01 Sl Paul Insurance Co. - CIA GP09100466 Enors & Omissions 1,050,000

07/01/01 St Paul Insurance Co. - CIA GPO9100466 Employers BenefitLiability

,050,0001500,000

07/01/01 Aviation Markets Insurance - CIA NAL3002126 Airport Liability 1,050,000

12/16/01 American International Co. - CIA 416-07-93 Excess Workers'Compensation 1,000,000

-77-

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CHARLES R. JONESDONALD W. KLUESNER

Member ofAmerican Institute of

Certified Public Accountants(505) 885-3167

FAX (505) 885-1807

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND INTERNAL CONTROLSOVER FINANCIAL REPqRTING BASED ON AN AUDIT OF FINANCIAL STATEME~S

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Mr. Domingo Martinez, CFGM, State Auditor andMayor and Members of the City CouncilCity of Carls badCarlsbad, New Mexico

We have audited the financial statements of the City of Carlsbad as of and for the year ended June 30, 200 1. and have issued ourreport thereon dated October 22. 200 I. We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to fmancial audits contained in Government Auditing Standards. issuedby the Comptroller General of the United States.

ComolianceAs part of obtaining reasonable assurance about whether the City of CarLsbad's financial statements are free of materialmisstatement, we performed tests of its compliance with certain provisions laws, regulations, contracts, and grants,noncompliance with which could have a direct and material effect on detennination offmancial statement amounts. However,providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not expresssuch an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported underGovernment Auditing Standards.

Internal Control Over Financial StatementsIn planning and performing our audit:;; ~onsidered the City of Carlsbad 's internal control over financial reporting in order todetermine our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not to provideassurance on the internal control over financial reporting. However, we noted certain matters involving the internal control overfmancial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters comingto our attention relating to significant deficiencies in the design or operation of the internal control over fmancial reporting that,in our judgment, could adversely effect the City of Carlsbad' s ability to record, process, summarize, and report financial dataconsistent with the assertions of management in the financial Statements. Reportable conditions are described in theaccompanying schedule of fmdings and questioned costs as item 2-1.

A material weakness is a condition in which the design or operation of one or more of the internal control components does notreduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statementsbeing audited may occur and not be detected within a timely period by enlployees in the normal course of performing theirassigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all mattersin the internal control that might be reportable conditions and. accordingly, would not necessarily disclose all reportableconditions that are also considered to be material weaknesses. However, we believe that none of the reportable conditionsdescribed above is a material weakness.

This report is intended solely for the infonnatioD and use of the audit committee, management, the New Mexico State Auditor,and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other thanthese specified parties.

a.:: ~~Certified Public AccountantsOctober 22,2001

-83-

CERTIFIED PUBliC ACCOUNTANTS209WMCKAY

CARLSBAD, NM 88220

CHARLES R. JONESDONALD W. KLUESNER

Member ofAmerican Institute of

Certified Public Accountants(505) 885-3167

FAX (505) 885-1807

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJORPROGRAM AND INTERNAL CONTROL OVER COMPUANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33

Mr. Domingo Martinez, CFGM, State Auditor andMayor and Members of the City CouncilCity of CarlsbadCarlsbad, New Mexico

CornolianceWe have audited the compliance of the City of Carls bad with the types of compliance requirements described in the U.S. Office of Managementand Budget (OMS) Circular A-I33 Compliance Supplement that are applicable to each of its major federal programs for the year ended June30,2001. The City of Carls bad's major federal programs are identified in the summary of auditor's results section of the accompanyingschedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major federal programs is the responsibility of the City of Carls bad's managentent. Our responsibility is to express an opinion on the Cityof Carls bad's compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the ComptroUer General of the United States; and OMBCircular A.l33, Audits of States. Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that

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 of Carlsbad' s compliance with those requirentents and perfonning such other procedures as we considered necessaryin the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal detenninationon the City of Carlsbad's compliance with those requirements.

In our opinion, the City of Carlsbad complied, in all material respects, with the requirements referred to above that are applicable to each ofits major federal programs for the year ended June 30,2001.

Internal Control Over ComolianceThe management of the City of Carlsbad is responsible for establishing and maintaining effective internal control over compliance withrequirements of laws, regulations, contracts and grants applicable to federal programs. In planning and perfonning our audit. we consideredthe City of Carlsbad's internal control over compliance with requirements that could have a direct and material effect on a major federalprogram in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report oninternal control over compliance in accordance with OMB Circular A-133.

weaknesses. A material weakness is a condition in which the design or operation of one or more of die internal control components does notreduce to a relatively low level the risk dlat noncompliance widi applicable requirements of laws, regulations, contracts and grants diat wouldbe material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in thenormal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operationthat we consider to be material weaknesses.

This report is intended solely for the infonnation and use of the audit committee, management, the New Mexico State Auditor, and federalawarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than those specified parties.

&=.1 ~~Certified Public Accountants

October 22, 200 1

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CERTIFIED PUBliC ACCOUNTANTS209 W MCKAY

CARLSBAD, NM 88220

Schedule 10CITY OF CARLSBAD

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

June 30,2001

Summary of Auditor's Results

(i)(ii)(ill)(iv)(5)(vi)

(vii)

An unqualified opinion was issued by the auditor on the auditee's fmancial statements.One reportable condition in internal control disclosed is reported in Part 2 of this schedule.The audit did not disclose any noncompliance material to the fmancial statements of the auditee.Reportable conditions in the internal control over major programs are not applicable to this report.An unqualified report was issued by the auditor on the auditee's compliance for major programs.The audit disclosed no findings required to be reported under Section 510(a) ofOMB Circular A-133,Audils ofStates. Local Governments. and Non-Profit Organizations.Major programs identified:(a) Community Development Block Grant CFDA No. 14.219(b) Aitport Improvement Program CFDA No. 20.106

(viii)(vix)

The dollar threshold used to distinguish between Type A and Type B programs was $300,000 of expenditures.The auditee did qualify as a low-risk auditee under Section 530 ofOMB CircularA-133.

(2) Findings relating to financial statements

General Fixed Assets

2-1. Condition: Several errors were discovered on the detail listings of equipment for the year ending June 30,2001,and the general ledger had not been updated for fixed asset additions, deletions and transfers.

Criteria: 2.20.1 NMAC, Accounting and Control of Fixed Assets of State Government, requires all governmentagencies and local public bodies to implement systematic and well-documented methods for accounting for theirfIXed assets.

~: Without correct detailed records of property and equipment, items may be misused or disposed of withoutproper authority, and the books and records of the City may not reflect the correct amount invested in general fixedassets.

~: The City of Carls bad has had problems keeping employees assigned to the fixed assets accounting andcontrol position. In addition, due to the turnover of employees in this position, there was not a well-documentedsystem showing the progress on fiXed assets accounting and control. The City is also in the process of installingnew accounting software for fixed assets, but has not had the necessary time needed to complete this installation.

Recommendation: We recommend that the City continue the work on the installation of the new accountingsoftware for fIXed assets, and update and correct the fixed asset accounting records as soon as possible. In additionwe recommend that the City document the progress and status on fixed assets accounting for every employeeassigned to these duties.

Resoonse: Pearlene Bradshaw, City Treasurer/Director of Finance; The City of Carls bad is currently conductinga physical audit of all fIXed assets. The City is also currently converting to a new fIXed assets program witlt anexpected programming completion date of January 2002. It is the goal oftlte City of Carlsbad to provide efficientproperty management and appropriate annual depreciation.

(3) There were no fmdings or questioned costs for Federal awards as defmed in Section SIO(a) ofOMB Circular A-I33.

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CITY OF CARLSBADSUMMARY OF PRIOR YEAR'S FINDINGS

June 30, 2001

1 Prior year audit fmding number 2-1 was not resolved and is being repeated in the current year fmding number 2-1

Exit Conference

The audit findings were discussed with Councilrilan Dan P. Funchess, Jon Tully, City Administrator, and Pearlene B'radshaw,City Treasurer/Director of Finance, on October 26,2001, by Donald W. Kluesner, CPA, from the accounting firm of Jonesand Kluesner, CPA's.

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Documents

STATE OF NEW MEXICO CITY OF CARLSBAD June 30, · PDF fileSTATE OF NEW MEXICO CITY OF CARLSBAD ROSTER OF OFFICIALS June 30, 2001 Gary L. Perkowski - Mayor City Council: Jimmie S. Cisneros