C.A.F.R., FY 2004-05 - Laserfiche WebLink

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Generally, appropriations are legally adopted at the department level. Budgetary controls are maintained at the major category of expenditure level within each operating division. All anticipated expenditures are budgeted for control purposes. Capital project funds are appropriated on a project by project basis. Expenditures and/or expenses are directly monitored by the City Council. Internal Controls Internal accounting controls are designed to provide reasonable, but not absolute, assurance of the safeguarding of assets against loss from unauthorized use or disposition and reliable financial records for preparing fmancial statements an~ maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived. All internal control evaluations occur within this framework. The Finance Department's staff believes the City's internal control structure adequately ensures compliance with laws and regulations and reasonable assurance for safeguarding of assets. Debt The following schedule outlines the outstanding City debt as of9-30-05: Moody's Tax Revenue Final Investors Issue Supported Supported Maturity Rating 1997 W & S Revenue Bonds $ $ 3,595,000 06-15-16 Aaa 1998 Tax & Revenue Refunding Bonds 4,340,000 12-15-11 Aaa 1998 W & S Revenue Refunding Bonds 5,165,000 12-15-11 Aaa 2000 Tax & Revenue C.O. 5,145,000 12-15-19 Aaa 2000 W & S Revenue Bonds 8,705,000 06-15-20 Aaa 2001 Tax & Revenue Refunding Bonds 3,785,000 06-15-12 A2 2002 Tax & Revenue Bonds 5,435,000 12-15-21 Aaa 2003 General Obligation Refunding Bonds 6,660,000 12-15-14 Aaa Total $ 17,240,000 $ 25,590,000 The City has various lease/purchase agreements outstanding for the purpose of acquiring certain equipment items with the minimum lease payments amounting to $238,734. The last of these leases ends in the year 2009. A $120,600 note payable for the construction of aircraft hangars and associated appurtenances at the City's Cox Field was obtained February 27, 1991. The note bears an interest rate of 5% with principal and interest payments made in annual installments. The current principal outstanding is $49,119. Independent Audit The City Charter requires an annual audit to be made of the accounts, fmancial records, and transactions of all administrative departments of the City by a certified public accountant selected by the City Council. The requirement has been complied with, and the Independent Auditors' Report has been included in this report. In addition, an audit was performed in accordance with the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Texas Single Audit Circular. The Report and Auditors' opinion may be found under the Overall Compliance, Internal Control, and Federal and State Awards Section of this report. 1-5