2001 Annual Financial ReportCITY OF BANGER
FINANCIAL STATEMENTS
September 30, 2001
''.
TABLE OF CONTENTS
AUDITOR'S REPORT
CITY OFFICIALS
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES -
BUDGET AND ACTUAL
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN RETAINED EARNINGS - PROPRIETARY FUND
COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND
NOTES TO FINANCIAL STATEMENTS
COMBINING AND INDIVIDUAL FUND AND ACCO UNT GROUP STATEMENTS
COMEII�IING STATEMENT OF REVENUES &EXPENDITURES
- GENERAL FUND
COMBINING STATEMENT OF REVENUES & EXPENDITURES
- SPECIAL REVENUE FUND
COMBINING STATEMENT OF REVENUES & EXPENDITURES
- GENERAL FUND - BUDGET AND ACTUAL
COMBINING STATEMENT OF REVENUES & EXPENDITURES
- SPECIAL REVENUE FUND - BUDGET AND ACTUAL
STATEMENT OF GENERAL FIXED ASSETS
SCHEDULE OF CHANGES TO GENERAL FIXED ASSETS
SCHEDULE OF PROPERTY, PLANT & EQUIPMENT - PROPRIETARY FUND
STATEMENT OF GENERAL LONG-TERM DEBT
SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT
SCHEDULE OF GENERAL FUND DEBT SERVICE REQUIREMENTS
SCHEDULE OF CHANGES IN LONG-TERM DEBT - PROPRIETARY FUND
SCHEDULE OF PROPRIETARY FUND DEBT SERVICE REQUIREMENTS
SUPPLEMENTAL INFORMATION
SCHEDULE OF RESTRICTED ASSETS
SCHEDULE OF RESERVED FUND EQUITIES
SCHEDULE OF INSURANCE COVERAGE
ENTERPRISE FUND # OF CUSTOMERS AND RATES
ANALYSIS OF PROPERTY TAXES
SCHEDULE OF GRANT RECEIPTS & EXPENDITURES
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER
FINANCIAL REPORTING BASED UPON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENTAL A UDITING STANDARDS
MANAGEMENT LETTER
REPORTS & SCHEDULES RELATED TO SINGLE A UDIT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
� ' NOTES TO SCHEDULE OF FEDERAL AWARDS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS - PRIOR YEAR
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO
EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
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William C. Spore, P.C.
Certified Public Accountants
To the City Council
City of Sanger, Texas
We have audited the accompanying general purpose financial statements of the City of
Sanger, Texas, as of and for the year ended September 30, 2001, as listed in the table of
contents. These general purpose financial statements are the responsibility of the City of
1 Sanger, Texas, management. Our responsibility is to express an opinion on these general
purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the general purpose financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the general purpose financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as
evaluating the overall general purpose financial statement presentation. 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, the financial position of the City of Sanger, Texas, as of
September 30, 2001, and the results of its operations and the cash flows of its proprietary
fund types and nonexpendable trust funds for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
February 22, 2002, on our consideration of the City of Sanger, Texas's internal control
over financial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts and grants. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with
this report in considering the results of our audit.
Our audit was conducted for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The accompanying schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by U.S. Office
of Management and Budget Circular A433, Audits of States, Local Governments, and
Non -Profit Organizations, and is not a required part of the general purpose financial
statements of the City of Sanger, Texas. Such information has been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and, in
our opinion, is fairly stated, in all material respects, in relation to the general purpose
financial statements taken as a whole.
William C. Spore, P.C.
February 22, 2002
3950 Highway 360, Suite 102 #Grapevine, TX 76051 # 817/421-6619
CITY OF SANGER
CITY OFFICIALS
September 30, 2001
ELECTED OFFICIALS
MAYOR
MAYOR PRO TEM
COUNCILMEMBERS
APPOINTED OFFICIALS
CITY MANAGER
CITY SECRETARY/ASSISTANT CITY MANAGER
MUNICIPAL COURT JUDGE
CITY ATTORNEY
Tommy Kincaid
Andy Garza
Glenn Ervin
Jimmy Evans
Joe Higgs
Craig Waggoner
Jack Smith
Rosalie Chavez
Danny Spindle
Nichols, Jackson, Dillard,
Hager & Smith
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE-2
CITY OF SANGER
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
September 30, 2001
GOVERNMENTAL FUNDS TYPE PROPRIETARY
FUND TYPES
SPECIAL
ASSETS GENERAL REVENUE UTILITY
FUND FUND FUNDS
Cash $ 68,771 $ 0 $ 438,442
Receivables, Net of
Allowances for Uncollectibles:
Property Taxes 74,975 0 0
Other Receivables 88,419 57,175 286,254
Services 0 0 510,423
Due from Other Funds 94,204 0 0
Inventory/Prepaid Expense 0 0 379,576
Restricted Assets - Cash 76,496 442,801 563141
Property, Plant and Equipment
Net of Accumulated Depreciation 0 0 51533,797
Construction in Process 0 0 11314,197
Amount to be Provided for Retirement
of General Long -Term Debt 0 0 0
TOTAL ASSETS $ 402,865 4991976 $ 91025,830
LIABILITIES
Accounts Payable $ 170,636 0 $ 640,191
Accrued Expenses 812 0 82,437
Due to Other Funds 0 0 94,204
Customer & Escrow Deposits 0 0 1531691
Deferred Revenues 74,975 0 0
Long -Term Debt:
Compensated Absences 0 0 38,378
Revenue Bonds Payable 0 0 2,590,000
Certificate of Obligation Payable 0 0 0
Notes Payable 0 0 579,359
Capital Leases 0 0 261842
TOTAL LIABILITIES 246,423 0 41205,102
FUND EQUITY
Contributed Capital 0 0 1,635,292
Investment in General Fixed Assets 0 0 0
Retained Earning - Reserved 0 0 306,841
Retained Earning - Unreserved 0 0 218781595
Fund Balance - Reserved 681684 4991976
Fund Balance - Unreserved 87,758 0
TOTAL FUND EQUITY 156,442 499,976 41820,728
TOTAL LIABILITIES AND
FUND EQUITY $ 402,865 499,976 $ 91025,830
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 3
ACCOUNT GROUPS
GENERAL
FIXED ASSETS
$ 0
0
0
0
0
0
0
3,232,473
0
0
$ 31232,473
GENERALLONG-
TERM DEBT
0
0
0
0
0
0
0
0
0
0
2,369,923
$ 21369,923
TOTALS
(memorandum only)
2001 2000
$ 507,213 $ 384,488
74,975
431,848
510,423
94,204
379,576
1,082,438
8,766,270
1,314,197
2,369,923
$ 15,531,067
0 0 83,249
94,204
0 0 1531691
0 0 74,975
0 47,700
0 0
0 11290,000
0 948,995
0 83,228
0 21369,923
0 0
31232,473 0
0 0
0 0
0 0
0 0
31232,473 0
$ 3,232,473 $ 2,369,923
86,078
2,590,000
1,290,000
1,5281354
110,070
6,821,448
1,635,292
3,232,473
306,841
2,878,595
568,660
87,758
8,709,619
$ 15,531,067
70,208
69,297
511,871
11,697
4371414
8091695
8,730,835
46,913
2,644,670
$ 13,717,088
586,946
68,554
11,697
1031804
701208
75,762
2,760,000
1,4101000
1,450,776
2331800
6,771,547
442,674
3,063,257
306,315
2,722,600
67,466
343,229
6,945,541
$ 13,717,088
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE-3
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES
For the Year Ended September 30, 2001
REVENUES GENERAL
Properly Taxes $ 676,511 $
Nonproperty Taxes 488,405
Penalties and Interest on
Delinquent Taxes 13,829
License and Permits 451823
Fees and Services 473,901
Grants and Intergovernmental 129,180
Interest Income 71093
Miscellaneous Income 13,906
Donations 19,557
TOTAL REVENUES 11868,205
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Notes Payable
Sale of Assets
Transfers In (Out)
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
SPECIAL
REVENUE
0 $
320,626
0
0
0
0
15,671
0
0
TOTALS
(memorandum only)
2001 2000
676,511
809,031
13,829
45,823
473,901
129,180
22,764
13,906
19,557
336,297 2,204,502
$ 580,937
631,085
12,924
28,793
403,841
84,593
16,115
13,118
30,787
1,802,193
547,547 41,898 589,445 1,504,051
6491899 0 6491899 536,295
132,966 0 132,966 1331849
57,225 0 57,225 453200
347,623 0 347,623 270,563
207,490 0 207,490 263,898
258,156 42,791 300,947 2071711
101,800 47,202 1493002 117,953
2,302,706 131,891 2,434,597 3,079,520
434,501) 204,406 (230,095) (1,277,327)
19,098
19,508
459,295
497,901
63,400
93,042
$ 156,442
0
0
(22,083)
(22,083)
182,323
317,653
19,098 1,017,763
19,508 0
437,212 305,452
4751818 11323,215
245,723
410,695
$ 499,976 $ 656,418
364,807
$ 410,695
SEE ACCOUNTANT'S REPORT AND NOTES ATTACHED
BUDGET
$ 0 $ 0
2921000 320,626
0
0
0
0
0
0
0
292,000
0
0
0
0
15,671
0
0
VARIANCE
$ 0 $ 670,000
281626 788,160
0
0
0
0
15,671
0
0
336,297 441297
9,000
60,300
4381000
1371613
4,000
30,500
2,500
2,140,073
(Memorandum On
ACTUAL
$ 6761511
809,031
13,829
45,823
473,901
129,180
22,764
13,906
19,557
2,204,502
VARIANCE
$ 6,511
20,871
4,829
(14,477)
35,901
(8,433)
18,764
(16,594)
17,057
64,429
5,900 41,898 (35,998) 554,283 589,445 (35,162)
0 0 0 702,282 649,899 52,383
0 0 0 129,401 132,966 (31565)
0 0 0 551300 57,225 (11925)
0 0 0 406,446 347,623 58,823
0 0 0 182,524 207,490 (24,966)
43,000
47,000
95,900
0
0
(22,000)
(22,000)
42,791
47,202
131.891
204,406
0
0
(22,083)
(22,083)
182,323
317.653
$ 499,976
209
(202)
(35,991)
8,306
(83)
$ 8,223
302,887 300,947 1,940
148,453 149,002 (549)
21481,576 21434,597 46,979
(341,503)
0
0
5031603
503,603
(230,095)
19,098
19,508
437,212
475,818
245,723
410,695
$ 656,418
19,098
19,508
(66,391)
(27,785)
$ 83,623
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE-5
CITY OF SANGER
COMBINED STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND
For the Year Ended September 30, 2001
2001
OPERATING REVENUES
Charges and Fees $ 4,983,147
OPERATING EXPENSES
2000
$ 4,086,359
Personnel Services 828,030 745,233
Purchase of Services 21738,352 21232,882
Materials and Supplies 111;092 87,584
Depreciation 4651139 444,407
Franchise Fees 106,122 81,662
TOTAL OPERATING EXPENSES
OPERATING INCOME
NONOPERATING REVENUES (EXPENSES)
Interest Income
Debt Service Interest, Fees & Discounts
Transfers Out
TOTAL NONOPERATING REVENUES
(EXPENSES)
NET INCOME
RETAINED EARNINGS -BEGINNING
RETAINED EARNINGS -ENDING
4,248,735
734,412
33,328
(174,007)
(437,212)
591.768
494,591
32,141
(187,235)
(305,452)
(577,891) (460,546)
3,028,915
2,994,870
$ 3,185,436 $ 3,028,915
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE-6
CITY OF SANGER
COMBINED STATEMENT OF CASH FLOWS -ALL PROPRIETARY FUND TYPES
For the Year Ended September 30, 2001
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES,
Cash Received from Customers $ 51041,169 $ 43023,869
Cash Payments to Suppliers for Goods
and Services (31185,000) (21281,098)
Cash Payments for Employees Services (824,814) (740,030)
NET CASH PROVIDED BY OPERATING ACTIVITIES 11031,355 11002,741
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of Capital Assets (11120,987) (496,494)
Additions to Long -Term Debt 290596 111,882
Principal Paid on Bonds and Notes (345,001) (300,470)
Interest Paid on Bonds and Notes (151,087) (164,144)
Capital Contributed - Grants 816,139 0
Cash Transferred to Other Funds (354,705) (298,784)
NET CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES (864,945) (11148,010)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on Investments 34,640 301655
NET INCREASE (DECREASE) IN CASH 2O1,050 (114,614)
CASH - BEGINNING OF YEAR 800,533 915,147
CASH - END OF YEAR $ 11001,583 $ 8001533
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating Income
Adjustment to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation
(Increase) Decrease in Receivables
(Increase) Decrease in Inventory/Prepaid Expense
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Accrued Expenses
Increase (Decrease) in Customer Deposits
NET CASH PROVIDED BY OPERATING
ACTIVITIES
$ 734,412
465,139
8,135
43,382
(2781235)
8,635
49,887
$ 1,0311355
$ 494,591
444,407
(72,944)
(208,625)
329,455
5,403
10,454
$ 13002,741
NON -CASH ACTIVITIES:
During the fiscal year a developer and the local garbage collection company conveyed land,
water and sewer systems to the City totaling P90,2250
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE-7
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -
The City of Sanger operates under a Council -Manager form of
government, following the laws of a Home Rule Charter City as
defined by the State of Texas. The City provides the following
services: public safety police, fire and ambulance, parks, streets,
sanitation, a public library senior center, community center and
general administrative services along with water, sewer and
electrical services.
The accounting policies of the City conform to generally accepted
accounting principles as applicable to governments. The following
is a summary of the more significant policies:
1. REPORTING ENTITY:
As required by generally accepted accounting principles, the
financial statements of the reporting entity include those of the
City of Sanger (the primary government) and its component units.
The following component units are included in the City's reporting
entity because of its operational and financial relationship with
the City.
The City has two blended component units as follows:
(4A) The Sanger Texas Industrial Development Corporation
(S.T.I.D.C.) is governed by a board of five directors, all of whom
are appointed by the City Council of the City of Sanger and any of
whom can be removed from office by the City Council at its, will.
The S.T.I.D.C. was incorporated in the state of Texas as a
non-profit industrial development corporation under Section 4A of
the Development Corporation Act of 1979. The purpose of the
S.T.I.D.C. is to promote economic development within the City of
Sanger. Separate financial statements of the component unit can be
obtained from the City's administrative offices.
(4B) The Sanger Texas Development Corporation (S.T.D.C.) is
governed by a board of seven directors, all of whom are appointed
by the City Council of the City of Sanger and any of whom can be
removed from office by the City Council at its, will. The S.T.D.C.
was incorporated in the state of Texas as a non-profit industrial
development corporation under Section 4B of the Development
Corporation Act of 1979. The purpose of the S.T.D.C. is to promote
economic and community development within the City of Sanger.
Separate financial statements of the component unit can be obtained
from the City's administrative offices.
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
2. FUND ACCOUNTING:
The accounts of the City are organized on the basis of funds or
account groups, each of which is considered to be a separate
accounting entity. The operations of each fund are accounted for
by providing a separate set of self -balancing accounts which are
comprised of each fund's assets, liabilities, fund equity, revenues
and expenditures or expenses, as appropriate. Governmental
resources are allocated to and for individual funds based upon the
purposes for which they are to be spent and the means by which
spending activities are controlled. The various funds are grouped,
in the financial statements in this report, into two generic fund
types and two broad fund categories as follows:
GOVERNMENTAL FUND TYPES
General Fund
The general fund is the general operating fund of the City. It is
used to account for all financial resources except those required
to be accounted for in another fund.
PROPRIETARY FUND TYPES
Enterprise Funds
Enterprise funds are used to account for operations (a) that are
financed and operated in a manor similar to private business
enterprises - where the intent of the governing body is that costs
(expenses, including depreciation) of providing goods or services
to the general public on a continuing basis be financed or
recovered primarily through user charges or (b) where the governing
body has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for capital
maintenance, public policy, management control, accountability, or
other purposes.
3. PROPERTY, PLANT AND EQUIPMENT AND LONG-TERM LIABILITIES:
The accounting and reporting treatment applied to property plant
and equipment and long-term liabilities associated with a fund are
determined by its measurement focus. All governmental fund types
are accounted for on a "financial flow" measurement focus. This
means that only current assets and current liabilities are
generally included on their balance sheets. Their reported fund
balance is considered a measure of "available spendable resources".
Governmental fund operating statements present increases (revenue
and other financing sources) and decreases (expenditures and other
financing uses) in net current assets. Accordingly, they are said
to present a summary of sources and uses of "available spendable
resources" during a period.
Page - 9
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
Plant, property and equipment used in governmental fund type
operations are accounted for in the General Fixed Assets Account
Group, rather than in governmental funds. No depreciation has been
provided on such property, plant and equipment.
�� All property, plant and equipment are valued at historical cost or
estimated historical cost if actual cost is not available. Donated
property, plant and equipment are valued at their estimated fair
value on the date donated.
Public domain "infrastructure" general fixed assets consisting of
certain improvements other than buildings, such as roads,
sidewalks, and bridges are not capitalized.
Long-term liabilities expected to be financed from governmental
fund types are accounted for in the General Long -Term Debt Account
Group, not in the governmental funds.
The two account groups are not "funds". They are concerned only
with the measurement of financial position. They are not involved
with measurement of results of operations.
`� Special reporting treatments are' applied to governmental fund
prepaid expenses to indicate that they do not represent "available
spendable resources", even though they are a component of net
i
current assets. Such amounts are generally offset by fund balance
reserve accounts.
Because of their spending measurement focus, expenditure
recognition for governmental fund types is limited to exclude
amounts represented by non -current liabilities. Since they do not
affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund
liabilities. They are instead reported as liabilities in the
General Long -Term Debt Account Group.
All proprietary funds are accounted for on a cost of services or
"capital maintenance" measurement focus. This means that all
assets and liabilities (whether current or noncurrent) associated
with their activity are included on their balance sheets. Their
report fund equity (net total assets) is segregated into
contributed capital and retained earnings components.
Depreciation is provided in the proprietary funds in amounts
sufficient to relate the cost of the depreciable assets, to
operations over their.estimated service lives on the straight-line
basis. The service lives by type are as follows:
Electric System 20 to 50 years
Water and sewer system 10 to 50 years
Furniture and Equipment 3 to 10 years
Page - 10
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
4. BASIS OF ACCOUNTING:
Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the
financial statements. Basis of accounting relates to the timing of
the measurement made, regardless of the measurement focus applied.
All governmental funds are accounted for using the modified
accrual basis of accounting. Their revenues are recognized when
they become measurable and available as net current assets. Gross
receipts and sales taxes are considered "measurable" when in the
hands of intermediary collecting governments and are recognized as
revenues at that time. All major revenues are susceptible to
accrual.
Expenditures are generally recognized under the modified basis of
accounting when the related fund liability is incurred. Exceptions
to this general rule include accumulated unpaid vacation and sick
time which are not accrued and principal and interest on general
Long-term debt which is recognized when due.
All proprietary funds are accounted for using the accrual basis of
accounting. Their revenues are recognized when they are earned,
and their expenses are recognized when they are incurred.
5. BUDGETS AND BUDGETARY ACCOUNTING:
The City follows these procedures in establishing the budgetary
data reflected in the financial statements:
A: Prior to July 1, the City Manager submits to the City Council a
proposed operating budget for the fiscal year commencing the
following October 1. The operating budget includes proposed
expenditures and the means of financing them.
B: Public hearings are conducted to obtain taxpayer comments.
C: Prior to October 1, the budget is legally enacted through the
passage of an ordinance.
D: The City Manager is authorized to transfer budgeted amounts
between departments within any fund, any revisions that alter the
total expenditures of any fund must be approved by the City
Council.
E: Budgets for the General and Proprietary Funds are adopted on a
' basis consistent with generally accepted accounting principles
(GAAP) .
F: Unused appropriations for all of the above annually budgeted
funds lapse at the end of the fiscal year.
Page - 11
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
6. ENCUMBRANCES:
Encumbrances represent commitments related to unperformed contracts
for goods and services. Encumbrance accounting, under which
purchase orders, contracts and other commitments for the
expenditure of resources are recorded to reserve that portion of
the applicable appropriation, is utilized in the General Fund.
Encumbrances outstanding at year end are reported as reservations
of fund balances and do not constitute expenditures or liabilities
because the commitments will be honored during the subsequent year.
7. CASH:
At year-end the City's cash accounts totaled $1,589,651 of which
$1,589,551 was held in checking, savings or certificate of deposit
accounts at, a local bank. Of the Bank balances, $105,384 was
covered by federal depository insurance and the remaining
$1,484,167 was covered by collateral held by the pledging Bank's
agent in the name of the City. There were no uncollateralized cash
accounts.
The securities pledged by the City's depository institution are as
follows:
SECURITY PAR FMV
FHLB Bond 2,300,000 2,426,500
8. CAPITALIZED INTEREST:
The City capitalizes construction period interest when applicable.
There was no interest requiring capitalization during the fiscal
year.
9: INVENTORIES:
Inventories of the Enterprise Fund are valued at the lower of cost
(first -in, first -out) or market.
10. ACCUMULATED COMPENSATED ABSENCES:
It is the City's policy to permit employees to accumulate a limited
amount of earned but unused vacation and sick time, which will be
paid to employees upon separation from the City's service. In
governmental funds, the cost of vacation and sick leave is
recognized when paid. A long-term liability of $47,700 of accrued
vacation and sick leave has been recorded in the General Long -Term
Debt Account Group, representing the City's commitment to fund such
costs from future operations. Proprietary funds accrue vacation
leave in the period they are earned.
Page - 12
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
11. REVENUE RECOGNITION - PROPERTY TAXES:
Property taxes attach as an enforceable lien on property as of
January 1. Taxes are levied on October 1 and are due and payable
at that time. All unpaid taxed levied October 1 become delinquent
February 1 of the following year.
Property tax revenues are recognized when they become available.
Delinquent taxes are considered fully collectable and, therefore,
no allowance for doubtful taxes is provided.
12. ALLOWANCE FOR UNCOLLECTABLE ACCOUNTS:
Allowance for uncollectable accounts receivable in the Proprietary
Fund at September 30, 2001 is $50,659.
13: GRANT ACCOUNTING:
All grant funds received by the general fund are included as
intergovernmental revenues in the statements of revenues and
expenditures. All grant funds received by the proprietary fund
that are to be used for capital projects are recorded as
contributed capital in the balance sheet while grant funds received
for operating purposes are included in the proprietary fund
statement of revenues and expenses as other operating revenues.
During the fiscal year the City received capital grants in the
proprietary fund totaling $1,102,393.
14. COMPARATIVE DATA:
Comparative data for the prior year have been presented in the
accompanying statements in order to provide an understanding of
changes in the City's financial position and operations. However,
complete comparative data (i.e., presentation of prior year totals
by fund type in each of the statements) have not been presented
since their inclusion would make the statements unduly complex and
difficult to read.
15. TOTAL COLUMNS ON COMBINED STATEMENTS:
Total columns on the Combined Statements are captioned "memorandum
If only" to indicate that they are presented only to facilitate
financial analysis. Data in these columns do not present financial
position, results of operations, or changes in financial position
in conformity with generally accepted accounting principles.
Neither is such data comparable to a consolidation. Interfund
elimination's have not been made in the aggregation of this data.
Page - 13
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
RETIREMENT PLANS:
Firemen's Pension Fund:
The City's firemen are covered
contributory plan is operated
and Retirement Funds, The
September 30, 2001 was $3,278.
Employee Retirement Plan:
by the firemen's pension plan. This
as part of the State Firemen's Relief
pension expense for the year ended
The City provides pension benefits for all of its full-time
employees through a non-traditional, joint contributory, defined
benefit plan in the state-wide Texas Municipal Retirement System
(TMRS),,an agent multiple -employer public retirement system.
Benefits depend upon the sum of the employee's contributions to the
plan, with interest, and the City -financed monetary credits, with
interest. Members can retire at ages sixty and above with ten or
more years of service or with twenty five years of service
regardless of age. A member is vested after ten years.
The contribution rate for the employees is 5% of gross earning and
the City provides a monthly contribution of 3.62% of gross
earnings. This rate consists of the normal cost contribution and
the prior service contribution rate. The normal cost contribution
rate finances the currently accruing monetary credits and the prior
service contribution rate amortizes the unfunded (overfunded)
actuarial liability (asset) over the remainder of the plan's twenty
five year amortization period. The City's contributions for the
fiscal year totaled $52,300.
The schedule of Actuarial Liabilities and Funding Progress for the
year ended September 30, 2001 is as follows:
Actuarial valuation date
Actuarial valuation of assets
Actuarial Accrued Liability
Percentage funded
Unfunded (Overfunded)
Liability (UAAL)
Annual covered payroll
UAAL as percentage of
actuarial
accrued
covered payroll
Net pension obligation - beginning
Annual required contributions
Contributions made
Net pension obligation - ending
12/31/00
$1,048,189
$ 991,883
105.7%
$ (56,306)
$1,240,306
-4.5%
$ 0
$ 52,300
$ (52,300)
$ 0
Page - 14
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
The City of Sanger is one of 745 municipalities having the benefit
plan administered by TMRS. Each of the 745 Municipalities have an
annual, individual actuarial valuation performed. All assumptions
for the 12-31-00 valuations are contained in the 2000 TMRS
Comprehensive Annual Financial Report, a copy of which may be
obtained by writing to P.O. Box 149153, Austin, Texas 78714-9153.
NOTE C: LONG-TERM DEBT:
The following is a summary of
future debt requirements are
these financial statements.
General Long Term Debt:
the City's Long -Term Debt. The
detailed in schedules included in
Certificates of Obligation, Series 1994 - Original amount of
$1,900,000; principal paid annually starting September 1, 1995;
Interest paid semi-annually on March 1, and September 1, at rates
ranging from 5.60 to 7.50%. The Bonds were issued for street
improvements and library building construction and are to be repaid
from property tax revenues and are further secured by a pledge of
Enterprise Fund Net Revenues,
The Certificates of Obligation require that certain reserve
accounts be maintained.
Note Payable - Guaranty National Bank - Original amount of
$38,9691 the note requires forty eight monthly installments of $914
with the final installment due April 2003. The note bears interest
at 6% and has twenty installments remaining at September 30, 2000.
The note proceeds were used to purchase various pieces of
qui epment, which also serve as collateral for the note.
Note Payable - Guaranty National Bank - Original amount of
$3810231 the note requires thirty six monthly installments of
$1,159 with the final installment due April 2003. The note bears
I
nterest at 6% and has nineteen installments remaining at September
30, 2000. The note proceeds were used to purchase a police vehicle,
which also serves as collateral for the note.
Note Payable
$53,540, the
$1,276 with
interest at
installments
were used to
for the note.
Note Payable
$43,184, the
$1,029 With
interest at
Guaranty National Bank Original amount of
- -
note requires forty eight monthly installments of
the final installment due July 2004. The note bears
two percent under prime rate and has thirty four
remaining at September 30, 2001. The note proceeds
purchase a backhoe, which also serves as collateral
- Guaranty NationalOriginal amount of
note requires forty eight monthly installments of
the final installment due July 2004. The note bears
two percent under prime rate and has thirty four
Page - 15
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
installments remaining at September 30, 2001. The note proceeds
were used to purchase a dump truck, which also serves as collateral
for the note.
Note Payable - Guaranty National Bank - Original amount of
$18,028, the note requires thirty six monthly installments of $555,
with the final installment due July 2003. The note bears interest
at two percent under prime rate and has twenty two installments
remaining at September 30, 2001. The note proceeds were used to
purchase a Chevy truck, which also serves as collateral for the
note.
Note Payable - Guaranty National Bank - Original amount of
$14,998, the note requires thirty six monthly installments of $461,
with the final installment due September 2003. The note bears
interest at two percent under prime rate and has twenty four
installments remaining at September 30, 2001. The note proceeds
were used to purchase a Dodge pickup, which also serves as
collateral for the note.
�' Note Payable - Guaranty National Bank - Original amount of
$19,098, the note requires thirty six monthly installments of $570,
with the final installment due May 2004. The note bears interest
at 2.80 percent under prime rate and has thirty two installments
remaining at September 30, 2001. The note proceeds were used to
purchase a police vehicle, which also serves as collateral for the
note.
Note Payable - Guaranty National Bank - Original amount of
$850,000, the note requires one hundred eighty monthly installments
of $7,499, with the final installment due July 2015. The note
bears interest at two percent under prime rate and has one hundred
sixty six installments remaining at September 30, 2001. The note
proceeds were used to purchase land for a development project
between the Sanger Texas Industrial Development Corporation and
Walmart Stores East, Inc. The loan will be repaid from the 4A sales
tax proceeds to be collected by the Sanger Texas Industrial
Development Corporation.
Capital Lease - Midwest Bankers Group - Original balance of
$172,179. The lease requires a down payment of $13,150 (paid in
February 1995) plus nine annual rental payments of $24,105
beginning in February 1996, The City has a purchase option during
the term of the lease to purchase the equipment at a designated
early term/purchase option price. The City intends to exercise
this option at the end of the lease term. The proceeds of the
lease were used to purchase a new pumper fire truck. The truck is
security for the lease.
Capital Lease - Ford Motor Credit Company - Original balance of
$14,300. The lease requires forty eight monthly rental payments of
$338, with one payments remaining at September 30, 2001. The City
has a purchase option during the term of the lease to purchase the
Page - 16
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase a Asphalt Roller. The equipment
is security for the lease.
Capital Lease - Ford Motor Credit Company - Original balance of
$46,548. The lease originally required thirty six monthly rental
payments of $1,401. One of the vehicles collateralized for the
loan was wrecked during the fiscal year and the insurance proceeds
paid off the remaining portion of the lease related to that
vehicle. The lease now requires payments of $699 with two payments
remaining at September 30, 2001. The City has a purchase option
during the term of the lease to purchase the equipment at a
designated purchase option price. The City intends to exercise
this option at the end of the lease term. The proceeds of the
lease were used to purchase two police vehicles. The remaining
vehicle is security for the lease.
Capital Lease - Ford Motor Credit Company - Original balance of
'95,453. The lease requires thirty six monthly rental payments of
$2,903 with three payments remaining at September 30, 2001. The
City has a purchase option during the term of the lease to purchase
the equipment at a designated purchase option price. The City
intends to exercise this option at the end of the lease term. The
proceeds of the lease were used to purchase four vehicles. The
vehicles are security for the lease.
Capital Lease - Lubbock National Bank - Original balance of
$361/53. The lease requires sixty monthly rental payments of $734,
with fourteen payments remaining at September 30, 2001. The City
has a purchase option during the term of the lease to purchase the
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase computer hardware and software.
The equipment is security for the lease.
Proprietary Fund:
Texas Utility System Revenue Bonds, Series 1996 - Original amount
of $1,0600,000, principal paid annually on May 15; Interest paid
semi-annually on May 15 and November 15, at rates ranging from 4.2%
to 4.75%. The bonds were issued to provide funds for improving and
extending the City's Sewer System, The Bonds are to be repaid from
and are secured by the Enterprise Fund Net Revenues,
Texas Utility System Refunding Revenue Bonds, Series 1999 -
Original amount of $1,735,000, principal paid annually on May 15;
Interest paid semi-annually on May 15 and November 15, at rates
ranging from 4.25% to 4.40%. The bonds were issued to provide
funds sufficient to advance refund maturities 2002 through 2011 of
the City's outstanding Series 1991 Bonds. The Bond proceeds were
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
used to purchase U.S. government securities. These securities were
deposited into an irrevocable trust to provide for debt service of
maturities 2002 through 2011. As a result, that portion of the
1991 series bonds is considered defeased, and the City has removed
the liability from its accounts. The outstanding principle of the
defeased bonds is $1,580,000 at September 30, 2001.
The 1999 Bonds are to be repaid from and are secured by the
Enterprise Fund Net Revenues.
The Bond Obligations require that certain cash reserve accounts be
maintained.
Note Payable - Guaranty National Bank - Original amount of
$379,000, the note is due on demand, if no demand is made then the
note requires five annual principal payments of $75,800 beginning
in October 2001. The note bears interest at 2.8 percent under
prime rate with annual interest payments also due each October
until the note is paid in full. The note proceeds were used for
j water storage facilities.
Note Payable - Guaranty National Bank - Original amount of
$169,076, the note requires forty eight monthly installments of
$3,967 with the final installment due April 2003. The note bears
interest at 6% and has twenty installments remaining at September
30, 2001. The note proceeds were used to purchase various pieces of
equipment, which also serve as collateral for the note.
Note Payable - Guaranty National Bank - Original amount of
$17,934, the note requires thirty six monthly installments of $547
with the final installment due April 2003. The note bears interest
at 6% and has nineteen installments remaining at September 30,
2001. The note proceeds were used to purchase a city vehicle, which
also serves as collateral for the note.
Note Payable - Guaranty National Bank - Original amount of
$29,652, the note requires thirty six monthly installments of $912,
with the final installment due August 2003. The note bears
interest at two percent under prime rate and has twenty three
!{ installments remaining at September 30, 2001. The note proceeds
were used to purchase a Ford pickup, which also serves as
collateral for the note.
Note Payable - Guaranty National Bank - Original amount of
$106,666, the note requires thirty six monthly installments of
$3,186 with the final installment due May 2004. The note bears
interest at 2.80 percent under prime rate and has thirty two
installments remaining at September 30, 2001. The note proceeds
were used to purchase a dump truck and a backhoe, which also serves
as collateral for the note.
Capital Lease - Ford Motor Credit Company - Original balance of
$40,432. The lease requires sixty monthly rental payments of $779,
'�' Page - 18
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
with fourteen payments remaining at September 30, 2001. The City
has a purchase option during the term of the lease to purchase the
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase a New Holland Backhoe. The
equipment is security for the lease.
Capital Lease - Ford Motor Credit Company - Original balance of
$32,657. The lease requires thirty six monthly rental payments of
$983, with two payments remaining at September 30, 2001. The City
has a purchase option during the term of the lease to purchase the
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase a vehicle. The vehicle is
security for the lease.
Capital Lease - Ford Motor Credit Company - Original balance of
$43,781, The lease requires thirty six monthly rental payments of
$1,318 with three payments remaining at September 30, 2001. The
City has a purchase option during the term of the lease to purchase
the equipment at a designated purchase option price. The City
intends to exercise this option at the end of the lease term. The
proceeds of the lease were used to purchase two vehicles. The
vehicles are security for the lease.
Capital Lease - Lubbock NationalOriginal balance of
$36,753. The lease requires sixty monthly rental payments of $734,
with fifteen payments remaining at September 30, 2001. The City
has a purchase option during the term of the lease to purchase the
equipment at a designated purchase option price. The City intends
to exercise this option at the end of the lease term. The proceeds
of the lease were used to purchase computer hardware and software.
The equipment is security for the lease.
NOTE D: DEBT SERVICE REQUIREMENTS NEXT FIVE YEARS:
Debt service requirements for each of the next five years are as
follows:
General Fund:
Proprietary Fund:
Year Principal Interest Principal Interest
2002 $287,168 $118,455 $ 374,618 $ 147,371
2003 276,010 103,750 349,224 128,895
2004 256,665 91,006 295,759 113,094
2005 221,508 76,110 275,800 99,359
2006 234,218 64,410 290t800 85,894
Future 1_,046,654 130,550 1.610,000 313,248
Total $2,322,223 $ 584,281 $3.196,201 $ 8874861
Page - 19
CITY OF SANGER
NOTES TO FINANCIAL STATEMENTS
September 30, 2001
NOTE E: PURCHASE COMMITMENT:
On June 5, 1995 the City entered into a eight year contract with
the Brazoz Electric Power Cooperative, Inc., whereby the City
purchases electric power and energy at agreed upon rates, subject
to a fuel adjustment charge and power adjustment on demand and
energy charges. Power purchased for the current fiscal year totaled
$2,177,1600
NOTE F: INTERFUND RECEIVABLE AND PAYABLE:
At September 30, 2001 the Proprietary Fund owed the General Fund
$94,204. The receivable and payable result from one fund paying an
expenditure for another fund.
NOTE G: BUDGET AMENDMENTS:
During the fiscal year the original budget was amended to reflect
actual events. The budget amendments were as follows:
Electric department lease expenditures were increased $35,525.
This increase was funded using prior year excess funds.
Library capital outlay, travel and training expenditures were
increased $28,613. Theses increases were funded from the receipt
of a library grant in the amount of $28,613 which was not budgeted.
Sanitation department collection contract expenditures were
increased $34,000. This increase was funded from solid waste
collection revenues and franchise tax revenues that exceeded
budgeted revenues.
',' Electric department power purchased expenditures were increased
$490,000 which was offset with increased actual electric department
revenues over budgeted revenues.
The 4A economic development budgeted expenditures were amended to
include debt service payments of $90,000 which were not originally
budgeted. The 4B economic development budgeted expenditures were
amended to include park improvement transfers to the general fund
which were not originally budgeted. Both of these amendments were
funded from sales tax revenues which were included in the original
budgets.
COMBINING AND INDIVIDUAL FUND
AND ACCOUNT GROUP STATEMENTS
AND SCHEDULES
CITY OF SANGER
COMBINING STATEMENT OF RNT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANC ALANCES - SPECIAL REVENUE FUND
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Nealth and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
For the Year Ended September 30, 2001
ADMINI=
TRATION
$ 6763511 $
188,938
13,829
45,823
31,029
0
7,093
13,906
17,511
994,640
POLICE L FIRE
0
0
109,911
0
0
0
0
109,911
0
0
0
82,103
0
0
0
82,103
SANITA-
TION
0
0
321,107
0
0
0
0
321.107
244,968 0 0 302,579
0 562,613 87,286 0
0 0 0 0
571225 0 0 0
0 0 0 0
71058 66,916 41,528 0
15,509
1,986
667.894
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Pay. 0
Sale of Assets 19508
Transfers In 437,212
TOTAL OTHER FINANCING
SOURCES (USES) 456,720
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITU $ 1,124,614
fWIN 77e1Re1i•C•3M 1w:mIr•T►�Ilr•L�'
1WRI17:7_1A_1i•[aM:1r•I71i•Cr7
31,808 49,216 0
21457 7,825 0
663,794 185,855 302,579
(553)883) (103,752) 18,528
19,098 0 0
0 0 0
0 0 0
19,098 0 0
$ (534,785) $ (103,752) $ 18,528
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21
COMMUNITY
SWIMMING &SENIOR
STREETS LIBRARY PARKS POOL CENTERS TOTAL
$ 0 $ 0 $ 0 $ 0 $ 0 $ 676,511
299,467 0 0 0 0 488,405
0 0 0 0 0 13,829
0 0 0 0 0 453823
0 21635 0 91219 0 473,901
0 47,077 0 0 0 129,180
0 0 0 0 0 71093
0 0 0 0 0 131906
0 0 21046 0 0 191557
299,467 49,712 21046 91219 0 1,8681205
0 0 0 0 0 547,547
0 0 0 0 0 6491899
1321966 0 0 0 0 132,966
0 0 0 0 0 571225
0 831973 218,984 331570 11,096 347,623
17,840 33,428 29,831 101239 650 207,490
140,023 21,600 0 0 0 258,156
74,578 14,954 0 0 0 101,800
3651407 1531955 248,815 43,809 11,746 21302,706
(65,940) (104,243) (246,769) (34,590) (11,746) (434,501)
0 0 0 0 0 193098
0 0 0 0 0 19,508
0 0 22,083 0 0 459,295
0 0 22,083 0 0 497,901
$ (651940) $ (104,243) $ (2241686) $ (341590) $ (11,746) 63,400
93,042
$ 1561442
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 21
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Deliquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
For the Year Ended September 30, 2001
HOTELI
MOTEL
ECON DEVEL.
4A
ECON DEVEL.
4B
$ 0 $ 0 $ 0 $
12,264 154,181 154,181
0 0 0
0 0 0
0 0 0
0 0 0
21849 21140 10,682
0 0 0
0 0 0
15,113 156,321 164,863
39,086
0
0
0
0
0
r'1
u
TOTAL EXPENDITURES 39,086
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (23,973)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Pay, 0
Transfers Out 0
TOTAL OTHER FINANCING
SOURCES (USES) 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES (23,973)
FUND BALANCE - BEGINNING 61,928
FUND BALANCE - ENDING $ 37,955
1,559
0
0
0
0
0
42,791
47,202
91,552
64,769
0
0
64,769
46,185
$ 110,954
1,253
0
0
0
0
0
0
0
163,610
TOTAL
0
320,626
0
0
0
0
15,671
0
0
336,297
41,898
0
0
0
0
0
42,791
47,202
131,891
204,406
0 0
(22,083) (22,083)
(22,083) (221083)
141,527
209,540
$ 351,067
182,323
317,653
$ 499,976
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 22
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 2001
ADMINISTRATION
REVENUES BUDGET ACTUAL VARIANCE
Property Taxes $ 670,000 $ 676,511 $ 6,511
Nonproperty Taxes 176,160 1881938 12,778
Penalties and Interest on
Delinquent Taxes 91000 13,829 41829
License and Permits 60,300 45,823 (14)477)
Fees and Services 14,250 31,029 16,779
Grants and Intergovernmental 0 0 0
Interest Income 41000 71093 32093
Miscellaneous Income 30500 13,906 (16,594)
Donations 21500 17,511 15,011
TOTAL REVENUES 966,710 994,640 27,930
EXPENDITURES
General Government 250,863 244,968 5,895
Public Safety 0 0 0
Highways and Streets 0 0 0
Health and Welfare 551300 57,225 (11925)
Culture and Recreation 0 0 0
Capital Outlay 31200 71058 (3)858)
Debt Service:
Principal 17,787 15,509 21278
Interest 2,013 11986 27
TOTAL EXPENDITURES 3291163 326,746 21417
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
637,547
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable 0
Sale of Assets 0
Transfers In 525,603
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
525.603
667.894
0
19,508
437,212
456,720
$ 1,163,150 $ 1,124,614
30,347
0
19,508
(88,391)
(68,883)
$ (38,536)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
For the Year Ended September 30, 2001
POLICE
BUDGET ACTUAL VARIANCE
$ 0
0
0
0
101,250
0
0
0
0
101,250
G�
0
0
0
0
109,911
0
0
0
0
1091911
EXPENDITURES
General Government 0 0
Public Safety 568,642 562,614
Highways and Streets 0 0
Health and Welfare 0 0
Culture and Recreation 0 0
Capital Outlay 38,500 66,916
Debt Service:
Principal 31,500 31,808
Interest 21500 2,457
TOTAL EXPENDITURES 641,142 663,795
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (539,892) (5533884)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable 0 191098
Sale of Assets 0 0
i
Transfers In 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 191098
r EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (539,892) $ (534,786)
0
0
0
0
8,661
0
0
0
0
8,661
0
6,028
0
0
0
(28, $16)
(308)
43
(22,653)
(13,992)
19,098
$ 5,106
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE-23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 2001
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable
Sale of Assets
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FIRE
BUDGET ACTUAL VARIANCE
0
0
0
0
0
80,000
0
0
0
80,000
0
1331640
0
0
0
38,000
49,000
8,000
228,640
(148,640)
0
0
0
0
$ (148,640)
$ 0 $ 0
0 0
0 0
0 0
0 0
821103 21103
0 0
0 0
0 0
82,103 21103
0 0
87,285 46,355
0 0
0 0
0 0
41,528 (31528)
49,216 (216)
7,825 175
1851854 42,786
(1031751) 44,889
0 0
0 0
0 0
$ (103,751) $ 44,889
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES = GENERAL FUND
For the Year Ended September 30, 2001
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable
Sale of Assets
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
SANITATION
[— BUDGET ACTUAL I VARIANCE
$ 0 $ 0 $ 0
0 0 0
0 0 0
0 0
321,000 321,107 107
0 0 0
0 0 0
0 0 0
0 0 0
3211000 3211107 107
297,520 3023579 (51059)
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
297,520 302,579 (51059)
23,480 181528 (41952)
0 0 0
0 0 0
0 0 0
0 0 0
$ 23,480 $ 18,528 $ (41952)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 2001
Properly Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable
Sale of Assets
(! Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
STREETS
(— BUDGET ACTUAL VARIANCE
$ 0 $
3201000
0
0
0
0
0
0
0
320,000
0
0
129,401
0
0
42,000
140,000
74,100
385,501
(65,501)
0 $ 0
2991467 (20,533)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
299.467
0
0
132,966
0
0
17,840
140,023
74,578
365,407
(65,940)
(20,533)
0
0
(3,565)
0
0
24,160
(23)
(478)
20,094
(439)
0
0
0
0
$ (439)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -GENERAL FUND
For the Year Ended September 30, 2001
LIBRARY
REVENUES BUDGEI ACTUAL I VARIANCE
Property Taxes $ 0 $ 0 $ 0
Nonproperty Taxes 0 0 0
Penalties and Interest on
Delinquent Taxes 0 0 0
License and Permits 0 0 0
Fees and Services 11500 21635 11135
Grants and Intergovernmental 46,613 47,077 464
Interest Income 0 0 0
Miscellaneous Income 0 0 0
Donations 0 0 0
TOTAL REVENUES 481113 49,712 1,599
EXPENDITURES
General Government 0 0 0
Public Safety 0 0 0
Highways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 87,778 83,973 31805
Capital Outlay 34,524 332428 11096
Debt Service:
Principal 21,600 21,600 0
Interest 14,840 14,954 (114)
TOTAL EXPENDITURES 158,742 153,955 41787
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (110,629) (104,243) 61386
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable 0 0 0
Sale of Assets 0 0 0
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (110,629) $ (104,243) $ 61386
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 2001
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable
Sale of Assets
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
PARKS
BUDGET ACTUAL VARIANCE
$ 0 $ 0 $ 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 21046 23046
0
0
0
0
2531329
16,300
0
0
269,629
(269,629)
0
0
0
0
$ (269,629)
2,046
0
0
0
0
2181984
29,831
0
0
248,815
(246,769)
0
0
22,083
22,083
$ (224,686)
2,046
0
0
0
0
34,345
(13,531)
0
0
20,814
22,860
0
0
22,083
22,083
$ 44,943
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 2001
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable
Sale of Assets
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
SWIMMING POOL
BUDG I ACTUAL VARIANCE
$ 0 $ 0 $ 0
0 0 0
0 0 0
0 0 0
0 0 0
11,000 9,219 (11781)
0 0 0
0 0 0
0 0 0
11,000 91219 (11781)
0
0
0
0
49,464
8,000
0
57,464
(46,464)
0
0
0
0
0
0
0
33,570
10,239
0
43,809
(34,590)
0
0
0
0
0
0
0
15,894
(2,239)
yny
13,655
11,874
0
0
0
0
$ 11,874
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
For the Year Ended September 30, 2001
COMMUNITY & SENIOR CENTERS
BUDGET I ACTUAL
0
0
0
0
0
0
0
C
0
0
0
0
0
0
0
VARIANCE
0
0
0
0
0
0
0
0
0
0
EXPENDITURES
General Government 0 0 0
Public Safety 0 0 0
Highways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 151875 11,096 41779
Capital Outlay 21000 650 11350
Debt Service:
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 17,875 11,746 61129
EXCESS REVENUES OVER
(UNDER) EXPENDITURES (17,875) (11,746) 61129
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable 0 0 0
Sale of Assets 0 0 0
Transfers In 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ (17)875) $ (11,746) $ 61129
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - GENERAL FUND
For the Year Ended September 30, 2001
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable
Sale of Assets
Transfers In
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
BUDGET
$ 670,000
496,160
9,000
60,300
438,000
137,613
4,000
30,500
2,500
11848,073
548,383
7021282
1291401
55,300
4061446
1821524
259,887
101,453
21386,676
(537,603)
0
0
525,603
525,603
$ (12,000)
TOTAL
ACTUAL
VARIANCE
$ 676,511 $ 6,511
488,405 (71755)
13,829
45,823
4641682
1381399
7,093
131906
19,557
1,8681205
547,547
6491899
1321966
57,225
3471623
2071490
258,156
101,800
2,302,706
(434,501)
19,098
19,508
459,295
497,901
63,400
93,042
$ 156,442
4,829
(14,477)
26, 382
786
3,093
(16,594)
17,057
20.132
836
52,383
(3,565)
(1,925)
58,823
(24,966)
1,731
(347)
82,970
103,102
19,098
19,508
(66,308)
(27,702)
$ 75,400
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 23
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES -SPECIAL REVENUE FUND
For the Year Ended September 30, 2001
HOTELIMOTEL
REVENUES BUDGET-] ACTUAL VARIANCE
Property Taxes $ 0 $ 0 $ 0
Nonproperty Taxes 12,000 12,264 264
Penalties and Interest on
Delinquent Taxes 0 0 0
License and Permits 0 0 0
Fees and Services 0 0 0
Grants and Intergovernmental 0 0 0
Interest Income 0 21849 27849
Miscellaneous Income 0 0 0
Donations 0 0 0
TOTAL REVENUES 121000 15,113 31113
EXPENDITURES
General Government 0 39,086 (39,086)
Public Safety 0 0 0
Highways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 0 0 0
Capital Outlay 0 0 0
Debt Service: 0 0
Principal 0 0 0
Interest 0 0 0
TOTAL EXPENDITURES 0 391086 (3%086)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 12,000 (23)973) (35,973)
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable 0 0 0
Transfers Out 0 0 0
TOTAL OTHER FINANCING
SOURCES (USES) 0 0 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 12,000 (23,973) $ (35,973)
FUND BALANCE - BEGINNING 61,928
FUND BALANCE - ENDING $ 37,955
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 24
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND
REVENUES
Property Taxes
Nonpropetty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
For the Year Ended September 30, 2001
ECONOMIC DEVELOPMENT -SECTION 4A
DULJU I ACTUAL I I VARIANCE
$ 0 $
1401000
0
0
0
0
0
0
0
1401000
EXPENDITURES
General Government 3,450
Public Safety 0
Highways and Streets 0
Health and Welfare 0
Culture and Recreation 0
Capital Outlay 0
Debt Service:
Principal 43,000
Interest 47,000
TOTAL EXPENDITURES 93,450
r EXCESS REVENUES OVER
(UNDER) EXPENDITURES 461550
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable 0
Transfers Out 0
I €
TOTAL OTHER FINANCING
SOURCES (USES) 0
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 46,550
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
0 $ 0
1541181 14,181
0 0
0 0
0 0
0 0
2,140 21140
0 0
0 0
156,321
1,559
0
0
0
0
0
42,791
47,202
91,552
64.769
0
0
0
64,769
46,185
$ 110,954
16,321
1,891
0
0
0
0
209
(202)
1,898
18,219
0
0
$ 18,219
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 24
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND
For the Year Ended September 30, 2001
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
EXPENDITURES
General Government
Public Safety
Highways and Streets
Health and Welfare
Culture and Recreation
Capital Outlay
Debt Service,
Principal
Interest
TOTAL EXPENDITURES
EXCESS REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable
Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES
FUND BALANCE -BEGINNING
FUND BALANCE -ENDING
ECONOMIC DEVELOPMENT -SECTION 46
BUDGETI ACTUAL I I VARIANCE
$ 0 $
140,000
0
0
0
0
0
0
0
140,000
2,450
0
0
0
0
0
0
0
2,450
137,550
0
(22,000)
(22,000)
$ 115,550
0 $ 0
1541181 14,181
0 0
0 0
0 0
0 0
10,682 0
0 0
0 0
164,863
1,253
0
0
0
0
0
0
0
163,610
0
(22,083)
(22,083)
141,527
209,540
$ 351,067
14,181
1,197
0
0
0
0
0
15,378
(83)
$ 15,295
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 24
CITY OF SANGER
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUND
REVENUES
Property Taxes
Nonproperty Taxes
Penalties and Interest on
Delinquent Taxes
License and Permits
Fees and Services
Grants and Intergovernmental
Interest Income
Miscellaneous Income
Donations
TOTAL REVENUES
For the Year Ended September 30, 2M
TOTAL
BUDGET I I ACTUAL I VARIANCE
$ 0 $
292,000
0
0
0
0
0
0
0
292,000
0 $
3201626
0
0
0
0
15,671
0
0
3361297
0
28,626
0
0
0
0
15,671
0
0
44,297
EXPENDITURES
General Government 51900 41,898 (35,998)
Public Safety 0 0 0
Highways and Streets 0 0 0
Health and Welfare 0 0 0
Culture and Recreation 0 0 0
Capital Outlay 0 0 0
Debt Service:
Principal 43,000 42,791 209
Interest 47,000 47,202 (202)
TOTAL EXPENDITURES 951900 131,891 (35,991)
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 1961100 204,406 81306
f OTHER FINANCING SOURCES (USES)
Proceeds of Capital Leases/Note Payable 0 0 0
Transfers Out (22,000) (22,083) (83)
TOTAL OTHER FINANCING
SOURCES (USES) (22,000) (22,083) (83)
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES $ 174,100 182,323 $ 85223
FUND BALANCE - BEGINNING 317,653
FUND BALANCE -ENDING
$ 499,976
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE-24
CITY OF SANGER
STATEMENT OF GENERAL FIXED ASSETS
For the Year Ending September 30, 2001
COST
Land $ 69,370
Buildings & Improvements 11133,715
Equipment 11293,810
Fire Equipment 503,192
Swimming Pool 2321386
INVESTMENT IN GENERAL
FIXED ASSETS $ 3,2321473
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 25
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
For the Year Ending September 30, 2007
COST BEGINNING ADDITIONS DELETIONS ENDING
Land $ 69,370 $ 0 $ 0 $ 69,370
Buildings & Improvements 11133,715 0 0 11133,715
Equipment 11176,361 155,723 38,274 11293,810
Fire Equipment 461,664 41,528 0 503,192
Swimming Pool 222,147 10,239 0 232,386
INVESTMENT IN GENERAL
FIXED ASSETS
$ 3,063,257 $ 207,490 $ 38,274 $ 3,232,473
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 26
CITY OF SANGER
SCHEDULE OF CHANGES IN PROPERTY, PLANT & EQUIPMENT
ENTERPRISE FUND
For the Year Ending September 30, 2001
BEUINNINUI JAUU111U1M*tk UtLrmU1U I ENDING
COST
Water System $ 2,606,034 $ 108,275" $ 0 $ 2,714,309
Sewer System 31515,130 51,941'�o 0 33567,071
Electric System 216781416 57,370 0 21735,786
Equipment 903,727 1101345 0 11014,072
Furniture & Office Equipment 200,906 31427 0 204,333
Building Improvements 322,858 0 0 322,858
Easement 11500 0 0 11500
TOTAL COST $ 10,228,571 $ 331,358 $ 0 $ 10,559,929
ACCUMULATED DEPRECIATION
Water System $ 1,108,751 $ 94,510 $ 0 $ 1,203,261
Sewer System 11060,634 101,870 0 11162,504
Electric System 11600,533 157,368 0 13757,901
Equipment 598,810 86,975 0 685,785
Furniture & Fixtures 165,200 14,064 0 179,264
Building Improvements 27,065 103352 0 37,417
Easement 0 0 0 0
TOTAL ACCUMULATED DEPRECIATION $ 4,560,993 $ 465,139 $ 0 $ 5,026,132
NET PROPERTY, PLANT & EQUIPMENT $ 516671578 $ 51533,797
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 27
CITY OF SANGER
STATEMENT OF GENERAL LONG - TERM DEBT
September 30, 2001
BOND OBLIGATIONS
Series 1994 Certificates of Obligation
NOTES PAYABLE
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guarantee National Bank
Guarantee National Bank
Guaranty National Bank
Guarantee National Bank
TOTAL NOTES PAYABLE
CAPITAL LEASES
Midwest Bankers
Lubbock National Bank
• _1
Ford
Ford
TOTAL CAPITAL LEASE OBLIGATIONS
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay
Accrued Sick Pay
f ,
TOTAL ACCRUED COMPENSATED ABSENCES
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG - TERM DEBT
0
17,408
20,881
38,956
31,421
11,308
10,229
17,105
8011687
63,592
9,283
336
1,382
8.635
34,000
13,700
$ 1,290,000
948,995
83,228
47,700
$ 2,369,923
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 28
CITY OF SANGER
SCHEDULE OF CHANGES IN GENERAL LONG - TERM DEBT
For the Year Ended September 30, 2001
BEGINNINGJADDITIONS1 IREDUCTION ENDING
BOND OBLIGATIONS
Series 1994 Certificates of Obligation
NOTES PAYABLE
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
TOTAL NOTES PAYABLE
CAPITAL LEASES
Midwest Bankers
Lubbock National Bank
Ford
Ford
Ford
TOTAL CAPITAL LEASES
ACCRUED COMPENSATED ABSENCES
Accrued Vacation Pay
Accrued Sick Pay
TOTAL ACCRUED COMPEN, ABSENCES
TOTAL TO BE PROVIDED FOR RETIREMENT
OF GENERAL LONG -TERM DEBT
$ 1,410,000 $ 0 $ 120,000 $ 1,290,000
27,018 0 9,610 17,408
33,131 0 12,250 20,881
51,478 0 12,522 381956
41,553 0 10,132 31,421
17,096 0 51788 11,308
14,988 0 4,759 101229
0 19,098 11993 17,105
844,477 0 42,790 801,687
$ 11029,741 $ 19,098 $ 99,844 $ 948,995
$ 82,180 $ 0 $ 18,588 $ 63,592
17,007 0 71724 91283
41226 0 31890 336
18,947 0 17,565 1,382
41,969 0 33,334 81635
$ 164,329 $ 0 $ 81,101 $ 83,228
$ 28,000 $ 61000 $ 0 $ 34,000
12,600 11100 0 13,700
$ 40,600 $ 71100 $ 0 $ 47,700
$ 21644,670 $ 26,198 $ 300,945 $ 2,3691923
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 29
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
Series 1994 Certificates of Obligation
Year Ending
September 30,
2002
2003
2004
2005
2006
2007
2008
2009
PRINCIPAL
$ 1251000
135,000
145,000
155,000
1651000
175,000
1901000
200,000
$ 1,290,000
September 30, 2007
INTEREST
$ 75,720
68,657
60,963
52,625
43,635
33,900
23,400
12,000
$ 370,900
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30,
2002
2003
PRINCIPAL
$
10,203
7,205
$ 17,408
INTEREST
$ 767
108
$ 875
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30,
2002
2003
PRINCIPAL
$ 13,005
7,876
$ 20,881
INTEREST
$ 899
235
$ 1,134
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30,
2002
2003
2004
PRINCIPAL
$ 13,337
14,160
11,459
$ 38,956
INTEREST
$ 1,975
1,152
1,301
$ 4,428
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30,
2002
2003
2004
PRINCIPAL
$ 10,758
11,421
9,242
$ 31,421
INTEREST
$ 1,593
929
1,049
$ 3,571
REQUIREMENTS
$ 200,720
203,657
2051963
207,625
208,635
2081900
213,400
212,000
$ 11660,900
TOTAL
EMENTS
REQUIR
$ 10,970
7,313
$ 18,283
TOTAL
REQUIREMENTS
$ 13,904
8,111
$ 22,015
TOTAL
REQUIREMENTS
$ 15,312
15,312
12,760
$ 43,384
TOTAL
12,351
REQUIREMENTS
$
12,350
10,291
$ 34,992
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 30
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 2001
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30,
2002
2003
PRINCIPAL
$ 6,146
5,162
$ 11,308
INTEREST
$ 511
386
$ 897
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30,
2002
2003
PRINCIPAL
$ 5,052
5,177
$ 10,229
INTEREST
$ 476
352
$ 828
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30,
2002
2003
2004
PRINCIPAL
$
6,169
6,465
4,471
$ 17,105
INTEREST
$ 672
376
90
$ 1,138
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30, PRINCIPAL
2002 $ 58,999
2003 61,403
2004 631905
2005 66,508
2006 69,218
2007 72,038
2008 74,973
2009 78,027
2010 81,206
2011 84,515
2012 87,958
2013 2,937
$ 801,687
INTEREST
$ 30,993
28,590
26,088
23,485
20,775
17,955
15,020
11,966
8,787
5,478
2,035
9
$ 191,181
TOTAL
REQUIREMENTS
$ 6,657
5,548
$ 12,205
TOTAL
REQUIREMENTS
$ 5,528
5,529
$ 11,057
TOTAL
EMENTS
REQUIR
$ 6,841
6,841
4,561
$ 18,243
TOTAL
REQUIREMENTS
$ 89,992
89,993
89,993
89,993
89,993
89,993
89,993
89,993
89,993
89,993
89,993
2,946
$ 992,868
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 30
i
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - GENERAL LONG-TERM DEBT
September 30, 2001
Capital Lease - Midwest Bankers
Year Ending
September 30,
2002
2003
2004
Less Amount Representing
Interest
LEASE
PAYMENT
$ 24,105
24,105
24,105
$ 72,315
8,723
$ 63,592
Capital Lease - LUBBOCK NATIONAL BANK
Year Ending
September 30,
2002
2003
Less Amount Representing
Interest
PRINCIPAL
$ 8,803
1,000
$ 9,803
520
$ 9,283
Capital Lease -FORD MOTOR CREDIT
Year Ending
September 30,
2002
Less Amount Representing
Interest
PRINCIPAL
$ 338
$ 338
$ 336
Capital Lease -FORD MOTOR CREDIT
Year Ending LEASE
September 30, PAYMENT
2002 $ 11392
1,392
fLess Amount Representing
Interest 10
$ 1,382
Capital Lease -FORD MOTOR CREDIT
Year Ending
September 30,
2002
Less Amount Representing
Interest
LEASE
PAYMENT
$ 8,709
8,709
74
$ 8,635
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 30
CITY OF SANGER
SCHEDULE OF CHANGES IN LONG - TERM DEBT - ENTERPRISE FUND
For the Year Ended September 30, 2001
REVENUE BOND OBLIGATIONS
Series 1991
Series 1996
Series 1999
TOTAL REVENUE BONDS
NOTES PAYABLE
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
Guaranty National Bank
TOTAL NOTES PAYABLE
CAPITAL LEASES
Lubbock National Bank
Ford Motor Credit
Ford Motor Credit
Ford Motor Credit
TOTAL CAPITAL LEASES
TOTAL LONG -TERM DEBT
BEGINNINGJAUU111UN401 jMr=UUC11U1Mq I ENDING
$ 1101000 $
935,000
1,715,000
$ 21760,000 $
0 $ 1101000 $ 0
0 40,000 8951000
0 201000 11695,000
0 $ 170,000 $ 21590,000
$ 195,000 $ 184,000 $ 0 $ 379,000
117,223 0 41,698 75,525
15,627 0 51777 91850
28,889 0 91465 19,424
64,296 0 64,296 0
0 1061696 11,136 95560
$ 421,035 $ 290,696 $ 132,372 $ 579,359
$ 181207 $ 0 $ 71723 $ 10,484
181930 0 81430 101500
13,290 0 11,341 11949
191044 0 15,135 3,909
$ 69,471 $ 0 $ 42,629 $ 26,842
$ 3,250,506 $ 290,696 $ 345,001 $ 3,196,201
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 31
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
es 1996 Revenue Bonds
Year Ending
September 30, PRINCIPAL
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
$ 40,000
45,000
45,000
45,000
50,000
50,000
55,000
60,000
60,000
65,000
70,000
70,000
75,000
80,000
85,000
$ 895,000
Series 1999 Revenue Refun
Year Ending
September 30,
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
PRINCIPAL
$ 140,000
145,000
1501000
155,000
165,000
170,000
180,000
190,000
195,000
2051000
$ 11695,000
September 30, 2001
INTEREST
$ 39,585
38,105
36,395
34,640
32,840
30,790
28,690
26,297
23,628
20,898
17,908
14,652
11,363
7,837
4,037
$ 367,665
INTEREST
$ 73,050
67,100
60,938
54,562
47,975
40,962
33,653
25,913
17,600
9,020
$ 430,773
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30,
2002
2003
2004
2005
2006
PRINCIPAL
$ 75,800
75,800
75,800
75,800
75,800
$ 379,000
INTEREST
$ 25,393
20,314
15,236
10,157
5,079
$ 76,179
TOTAL
REQUIREMENTS
$ 79,585
83,105
81,395
79,640
82,840
80,790
83,690
86,297
83,628
85,898
87,908
84,652
86,363
87,837
89,037
$ 1,262,665
TOTAL
REQUIREMENTS
$ 213,050
212,100
210,938
209,562
212,975
210,962
213,653
2151913
212,600
214,020
$ 21125,773
101,193
REQUIREMENTS
$
96,114
91,036
85,957
80,879
$ 455,179
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 32
CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 2001
NOTE PAYABLE - GUARANTY NATIONAL BANK
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
2002 $ 44,269 $ 31328 $ 47,597
2003 31,256 478 31,734
$ 751525 $ 3,806 $ 793331
NOTE PAYABLE - GUARANTY NATIONAL BANK
I'
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
2002 $ 63135 $ 424 $ 61559
2003 31715 111 31826
$ 91850 $ 535 $ 10,385
NOTE PAYABLE - GUARANTY NATIONAL BANK
Year Ending TOTAL
September 30, PRINCIPAL INTEREST REQUIREMENTS
2002 $ 10,048 $ 892 $ 10,940
2003 91376 653 101029
$ 19,424 $ 11545 $ 201969
NOTE PAYABLE -GUARANTY NATIONAL BANK
Year Ending
September 30,
2002
2003
2004
PRINCIPAL
$ 34,473
36,128
24,959
$ 95,560
Capital Lease - LUBBOCK NATIONAL BANK
Year Ending LEASE
September 30, PAYMENT
2002 8,803
2003 2,201
11,004
Less Amount Representing
Interest 520
$ 10,484
INTEREST
$ 3,754
2,098
525
$ 6,377
TOTAL
REQUIREMENTS
$ 38,227
38,226
25,484
$ 101,937
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 32
'!! CITY OF SANGER
DEBT SERVICE REQUIREMENTS - ENTERPRISE FUND
September 30, 2001
Capital Lease "FORD MOTOR CREDIT
Year Ending
September 30,
2002
2003
Less Amount Representing
Interest
LEASE
PAYMENT
$ 9,344
1,558
10,902
402
$ 10,500
Capital Lease -FORD MOTOR CREDIT
Year Ending
September 30,
2002
Less Amount Representing
Interest
LEASE
PAYMENT
$ 1,966
1,966
Capital Lease -FORD MOTOR CREDIT
Year Ending
September 30,
2002
Less Amount Representing
Interest
17
LEASE
PAYMENT
$ 3,954
3.954
45
$ 3,909
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE - 32
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESTRICTED CASH
September 30, 2001
GENERALFUND
Police Department Funds
Fire Department Funds
Beautification Board Funds
Library Funds
Park Department Fund
Certificate of Obligation Reserve and I & S Funds
TOTAL GENERAL FUND
SPECIAL REVENUE FUND
Tourism Funds (Hotel/Motel)
Economic Development -Section 4A
Economic Development -Section 4B
TOTAL SPECIAL REVENUE FUND
ENTERPRISE FUND
Revenue Bond I & S Funds
Revenue Bond Reserve Funds
Revenue Bond Emergency Fund
Customer Utility Deposits
Bolivar Water Escrow Funds
Unspent 1996 Revenue Bond Funds
Texas Capital Grant Funds
One Plus Program
Safety and Incentive Funds
TOTAL ENTERPRISE FUND
$ 126
7,415
15,188
569
7,386
45,812
$ 76,496
$ 37,955
82,369
322,477
$ 442,801
$ 47,522
2531530
16,212
121,187
120,946
2,413
2
70
1,259
$ 563,141
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 33
CITY OF SANGER
GOVERNMENTAL AND PROPRIETARY FUNDS
SCHEDULE OF RESERVED FUND EQUITIES
September 30, 2001
GENERAL FUND
Police Department Fund $ 126
Fire Department Funds 7,415
Beautification Board Funds 15,188
Library Funds 569
Park Department Fund 7,386
Minimum Required Reserves, Interest and
Sinking Funds -1994 Certificate of Obligation 38,000
TOTAL GENERAL FUND $ 68,684
SPECIAL REVENUE FUND
Hotel/Motel Fund $ 37,955
Economic Development -Section 4A 82,369
Economic Development -Section 4b 322,477
TOTAL SPECIAL REVENUE FUND
ENTERPRISE FUND
Minimum Required Reserves, Interest and
Sinking Funds -Revenue Bonds
One Plus Program
Safety and Incentive
TOTAL ENTERPRISE FUND
it 442801
,
$ 305,512
r�
$ 306,841
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE-34
CITY OF SANGER
SCHEDULE OF INSURANCE COVERAGE
September 30„ 2001
AMOUNT OF _
TYPE OF COVERAGE FROM F TO COVERAGE CARRIER
Business Auto.
Liability 10/1/00 10/1/01 310001000 Texas Municipal League
Physical Damage 10/1/00 10/1/01 Actual Cash Value Texas Municipal League
Property Damage 10/1/00 10/1/01 Scheduled Equip. Texas Municipal League
31124,648
Workmen's Compensation
Liability -
Law Enforcement Liability
Errors &Omissions
General Liability
Mobile Equipment
Boiler & Machinery
Employee Bond
10/1/00 10/1/01 Statutory Texas Municipal League
10/1/00 10/1/01 1,000,000 Texas Municipal League
10/1/00 10/1/01 11000,000 Texas Municipal League
10/1/00 10/1/01 31000,000 Texas Municipal League
10/1/00 10/1/01 276,615 Texas Municipal League
10/1/00 10/1/01 5001000 Texas Municipal League
6/24/01 6/24/02 10,000 Western Surety
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 35
CLASSIFICATION OF CUSTOMERS
Residential
Commercial, Demand & City
CITY OF SANGER
PROPRIETARY FUND
SUPPLEMENTAL INFORMATION
September 30, 2001
WATER
1,831
186
ELECTRIC
1,405
391
NUMBER OF CONNECTIONS 2,017 1,796
WATER RATES RESIDENTIAL COMMERCIAL
Deposit $ 50.00 $ 100.00
First 1,000 Gallons (minimum) $ 14.25 $ 17.00
1,000 TO 5,000 Gallons $ 2.35 $ 2.75
5,000 TO 15,000 Gallons $ 2060 $ 3.00
15,000 TO 30,000 Gallons $ 3205 $ 3.25
Over 30,000 Gallons $ 3.90 $ 4.00
SEWER RATES RESIDENTIAL COMMERCIAL
SEWER
First 1,000 Gallons (minimum) $ 15.00 It 21.00 to 75.00 Based on meter size
Over 1,000 Gallons
Maximum $ 30.00 $ NO MAX
SMALL LARGE
ELECTRIC RATES RESIDENTIAL COMMERCIAL COMMERCIAL
Deposit $ 100.00 $ 200.00 $ 200.00
Facility Charge $ 9.00/month $ 15.00/month $ 54.00/month
Energy Charge $ 0.0761634/KWH $ .081696/kwh $ 0.037705/kwh
Demand Charge:
First 6 KWH (minimum) $ -- $ -- $ 54.00
Over 6KWH $ -- $ -- $ 9.00/kwh
GALLONS OF WATER METERED (APPROX.) 194,774,410
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 36
CITY OF SANGER
ANALYSIS OF TAXES RECEIVABLE
For the Year Ended September 30, 2001
2001 2000 1999 1998
ADJUSTED TAX ROLL $ 681,486 $ 584,208 $ 5061698 $ 431,649
Less: Collections and Adjustments 655,189 560,137 484,054 415,237
CURRENT YEAR TAXES RECEIVABLE -
END OF YEAR 26,297 24,071 22,644 16,412
PRIOR YEAR TAXES RECEIVABLE -
END OF YEAR 48,679 46,137 46,742 51,802
TOTAL TAXES RECEIVABLE -
END OF YEAR $ 74,976 $ 70,208 $ 691386 $ 68,214
Assessed Value $ 130,306,503 $ 111,724,586 $ 100,765,297 $ 911334,817
Tax Rate per $100 $ 0.5228 $ 0.5228 $ 095028 $ OA726
Percent of Current Taxes Collected to Billed 96414% 95888% 95453% 96.20%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 37
CITY OF SANGER
COMMUNITY DEVELOPMENT BLOCK GRANT NO.720082
TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT
SCHEDULE OF GRANT RECEIPTS & EXPENDITURES
For the Year Ending September 30, 2001
CONTRACT PERIOD
October 4, 2000 through October 3, 2003
PRIOR
FEDERAL LOCAL YEARS TOTAL BUDGET VARIANCE
RECEIPTS:
Federal $ 111027393 $ — $ 0 $ 11102,393 $ 11500,000 (397,607)
Local — 0 0 0 157000,000 (15,000,000)
TOTAL RECEIPTS 171021393 0 0 11102,393 167500,000 (15,3977607)
EXPENDITURES:
FEDERAL
Water Improvements 369,332 — 0 3697332 686,300 316,968
Sewer Improvements 657592 — 0 652592 109,800 447208
Electrical 552,000 — 0 5522000 552,000 0
Building Construction 0 — 0 0 0 0
Engineering 77,291 — 0 772291 812900 47609
Administration 387178 — 0 38,178 703000 312822
LOCAL
Water Improvements — 1072527 0 107,527 0 (1077527)
Sewer Improvements — 0 0 0 0
Electrical — 1,375 0 17375 (11375)
Building Construction — 0 0 0 1520007000 15,000,000
Engineering — 2,888 0 21888 (21888)
Administration — 10,527 0 107527 0 (107527)
TOTAL EXPENDITURES 11102,393 1227317 0 11224,710 165001000 157275,290
EXCESS REVENUES OVER
EXPENDITURES $ 0 $ (1227317) $ 0 $ (122,317) $ 0 $ (122,317)
GRANT RECEIPTS ARE RECORDED IN THE PROPRIETARY FUND BALANCE SHEET AS "CONTRIBUTED CAPITAL"
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
PAGE 38
WILLIAM C. SPORE P.C.
Certified Public Accountants
3950 Hwy 360, Ste 102, Grapevine, Texas 76059
817421-6619
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED UPON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENTAL AUDITING STANDARDS
To the City Council
City of Sanger, Texas
We have audited the financial statements of City of Sanger as of and for the year ended September 30,
2001, and have issued our report thereon dated February 22, 2002. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Com lip ance
As part of obtaining reasonable assurance about whether City of Sanger's financial statements are free of
material misstatement, we performed tests of its compliance with certain provision of laws, regulations,
contracts and grants, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance that are required to be reported under
Government Auditing Standards,
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Sange, s internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and not to provide assurance on the internal control over financial reporting.
Our consideration of the internal control over financial reporting would not necessarily disclose all
matters in the internal control over financial reporting that might be material weaknesses. A material
weakness is a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that misstatements in amounts that would
be material in relation to the financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operation that we consider to be
material weaknesses.
This report is intended for the information and use of management, Honorable Mayor and City Council
of the City of Sanger, Texas, and is not intended to be and should not be used by anyone other than
these specified parties.
TiTilliam U. ..-.
oul
February 22, 00
WILLIAM C. SPORE, P.C.
Certified Public Accountants
3950 Hwy 360, Ste 102, Grapevine, Texas 76059
817421-6619
To the City Council
City of Sanger, Texas
In planning and performing our audit of the general purpose financial statements of the
City of Sanger, Texas, for the year ended September 30, 2001, we considered its internal
control structure in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on the
internal control.
In accordance with Government Audztzng Standards, we have issued our report dated
February 22, 2002 on our consideration of the City of Sanger's internal control over
I inancial reporting. However, during our audit we became aware of matters that are
opportunities for strengthening internal controls and operating efficiency. These matters
are as follows:
(1) The electric department inventory system is now operational, Reports should be
generated monthly and reviewed for accuracy in order to insure the system is maintained
regularly and is up to date. Cycle counts of the inventory should be periodically done to
insure the accuracy of the inventory, with significant discrepancies reported to the City
Administrator.
(2) The budget was amended on two occasions during the fiscal year. The accounting
software was not updated to reflect the second budget amendments, therefore
budget/actual comparison reports were not reflecting the second budget amendments.
Policies should be put in place to insure that all budget amendments are reflected in the
budget/actual comparison reports to insure that management and the Council are receiving
the most update to date budget comparison reports.
I We will review the status of these comments during our next audit engagement. We have
already discussed these comments and suggestion with the City Manager and City
Secretary, and we will be pleased to discuss them in further detail at your convenience, to
perform any additional study of these matters, or to assist you in implementing the
recommendations.
Sincerely,
William C. Spore, P.C.
February 22, 2002
REPORTS AND SCHEDULES
RELATED TO SINGLE AUDIT
FEDERAL GRANTOR/PASS-THROUGH GRANTOR
Department of Housing &Urban Development:
Community Development Block Grant
Pass -through Program from Texas Department
of Economic Development
CITY OF SANGER
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ending September 30, 2001
PASS -THROUGH
ENTITY
FEDERAL IDENTIFYING
CFDA # NUMBER
14.228 720082
AWARD FEDERAL
AMOUNT EXPENDITURES
$ 1,500,000 $ 1,102,393
MATCHING
EXPENDITURES
$ 122,317
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS PAGE - 39
CITY OF SANGER
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended September 30, 2001
NOTE A: Si, MUMMRY OF SIGNIFICANT ACCOUNTING POLICIES -
The accompanying schedule of expenditures of federal awards
includes the federal grant activity of the City of Sanger and is
presented on the accrual basis of accounting. The information in
this schedule is presented in accordance with the requirements of
OMB Circular A-133, Audits of States, Local Governments, and
Non -Profit Organizations. Therefore, some amounts presented in
this schedule may differ from amounts presented in, or used in the
preparation of, the basic financial statements.
Amounts expended to date related to the Texas Department of
Economic Development grant are included in the Propri
Eetary Fund's
balance sheet in the line item Construction if Process. Once the
project is complete the costs will be capitalized and depreciated
over the useful lives of the various assets. The line item
Construction in Process includes other projects in addition to the
grant funds project.
Amounts received to date related to the Texas Department of
Economic Development grant are recorded as Contributed Capital in
the Proprietary Fund's balance sheet.
CITY OF SANGER
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended September 30, 2001
1. The Auditor's report expressed an unqualified opinion on the
(general purpose) financial statements of the City of Sanger.
2. No reportable conditions were disclosed during the audit of
the (general purpose) financial statements of the City of
Sanger.
3. No instances of noncompliance material to the (general
purpose) financial statements of the City of Sanger were
disclosed during the audit.
4. No reportable conditions were disclosed during the audit of
internal control over major federal award programs.
5. The auditor's report on compliance for the major federal award
programs for the City of Sanger expressed an unqualified opinion on
all major federal programs.
6. There were no audit findings relative to the major federal
award programs for the City of Sanger to be reported in this
schedule.
7. The programs tested as major programs included:
Department of Housing & Urban Development, Community Block
Grant,
8. Threshold for distinguishing Types A and B programs was
$300,000. There were no Type B programs.
9. The City of Sanger is not a low -risk auditee.
CITY OF SANGER
SCHEDULE OF FINDINGS AND QUESTIONED COSTS - PRIOR YEAR
For the Year Ended September 30, 2001
1. There were no prior year findings or questioned costs.
WILLIAM C. SPORE, P.C.
Certified Public Accountants
3950 Hwy 360, Ste 102, Grapevine, Texas 76059
817421-6619
REPORT ON COMPLIANCE WITH REQUIIZEMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A433
To the City Council
City of Sanger, Texas
Compliance
We have audited the compliance of City of Sanger, Texas, with the types of compliance requirements
described in the U. S. Office of Management and Budget (OMB) Circular a433 Compliance
Supplement that are applicable to each of its major federal programs for the year ended September 30,
2001. City of Sanger, Texas's major federal programs are identified in the summary of auditor's results
section of the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major federal programs
is the responsibility of City of Sanger, Texas's management. Our responsibility is to express an opinion
on City of Sanger, Texas'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 standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A.133, Audits of
States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular a433
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred 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 City
of Sanger, Texas's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for
our opinion. Our audit does not provide a legal determination of City of Sanger, Texas's compliance
with those requirements.
In our opinion, City of Sanger, Texas, complied, in all material respects, with the requirements referred
to above that are applicable to each of its major federal programs for the year ended September 30,
2001,
Internal Control Over Compliance
The management of City of Sanger, Texas, is responsible for establishing and maintaining effective
internal control over compliance with requirements of laws, regulations, contracts and grants applicable
to federal programs. In planning and performing our audit, we considered City of Sanger, Texas's
internal control over compliance with requirements that could have a direct and material effect on a
major federal program in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance and to test and report on the internal control over compliance in accordance with
OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in
the internal control that might be material weaknesses. A material weakness is a condition in which the
design or operation of one or more of the internal control components does not reduce to a relatively
low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and
grants that would be material in relation to a major federal program being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned
functions. We noted no matters involving the internal control over compliance and its operation that we
consider to be material weaknesses.
This report is intended solely for the information and use of the audit committee, management, others
within the organization, City Council, and federal awarding agencies and pass -through entities and is not
intended to be and should not be used by anyone other than these specified parties.
William C. Spore, P.C.
February 22, 2001
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