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2000� � � � � � � � � � � � � � � � � � RUNYON KERSTEEN � OUELLETTE CITY OF BANGOR,MAINE Reports Required by Government Auditing Standards and OMB Circular A-133 June 30,2000 Report Pa�e Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1-2 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133 3-4 Schedule of Expenditures of Federal Awards 5-6 Notes to Schedule of Expenditures of Federal Awards 7 Schedule of Findings and Questioned Costs: Section I - Summary of Auditor's Results 8 Section II- Findings Required to be Reported Under Government Auditing Standards 9 Section III - Findings and Questioned Costs for Federal Awards ll� Statement of Assurance and Determination Under 20-A MSRA, §6051 11 RUNYON KERSTEEN OUELLETTE Certified Public Accountants & Business Consultants REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINAN�IAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STAi�1DARDS City Council City of Bangor,IVlaine We have audited the general purpose financial state►nents of the City of Bangor as of and for the year ended June 30, 2000, and have issued our report thereon dated October ]8, 2000. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Governmef�t Auditing Stundarcls, issued by the Comptroller General of the United States. Compiiance As part of obtaining reasonable assurance about whether the City of Bangor�s financial statements are free of material misstatement,we performed tests of its compliance with certain provisions 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 Controi Over Financial Reportin� In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of e.cpressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However,we noted a matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportabfe conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internai control over financial reporting that, in our judgment, couid adversely affect the City of Bangor's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. A reportable condition is described in the accompanying schedule of findings and questioned costs as item#2000 - 1. A materiaf 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 performintr their assigned functions. Our consideration of the internal control over financial reporting would not 20 Long Creek Drive South Portland, ME 04106 207-773-2986 or 1-800•4861784 1 � � FAX 207•7723361 or 1-800-486-1785 hccp://www.rko-cpas.com The CPA. Never Underestimate The Value REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCOR.DANCE WITH GOVERNMENT AUDITING STANDARDS, CONTINUED necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However,we believe the reportable condition described above is not a material weakness. We noted other matters involving the internal control over financial reporting that we have reported to the management of the City in a separate letter dated October 18, 2000. This report is intended for the information of the City Council, School Board, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specific parties. j�,c,u,c�,� ��.d,� O,�.c��k..� October 18,2000 South Portland,Maine 2 RUNYON KERSTEEN OUELLETTE Certified Public Accountants & Business Consultants REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 . City Council City of Bangor, Maine Compiiance We have audited the compliance of the City of Bangor with the types of compliance requirements described in the U. S. Of#ice of Management and Budget(OMB)Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2000. The City of Bangor'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 the City of Bangor's management. Our responsibility is to express an opinion on the City of Bangor's cornpliance based on our audit. We conducted our audit of compliance in accordance wi#h generally accepted auditing standards; the standards applicable to financial audits contained in Governrnent Auditir7g 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 A-133 require that we plan and perform the audit to obtain reasonable assurance about whether � noncompliance with the types of compliance requirements referred to above ti�at could have a direct and material effect on a major federal program occurred. An audit includes examininQ,on a test basis, evidence about the City of Bangor's compliance with those requirements and y 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 on the City of Bangor's compliance with those requirements. In our opinion the City of Bangor compl'ied, in all material respects,with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2000. Internal Control Over Compliance The management of the City of Bangor is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and �rants applicable to federal programs. In planning and performing our audit,we considered the City's internal control over compliance with requirements that coufd have a direct and material effect on 20 Long Creek Drive South Portland, ME 04106 207•773-2986 or 1•800-486-1784 3 � � FAX 207•7723361 or 1-800-486-1785 http://www.rko-cpas.com The CPA. Never Underestimate The Value �" �.. REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAiVI AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133,CONTINUED 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 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 internal controi 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 ne matters involving the internal control over compliance and its operation that we consider to be material weaknesses. Schedule of EYpenditures of Federal Awards We have audited the general pu�pose financial statements of the City of Bangor as of and for the year ended June 30,2000, and have issued our report thereon dated October 18, 2000. Our audit was performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes � of additional analysis as required by OMB Circular A-133 and is not a required part of the fnancial statements. 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. This report is intended for the information of the City Council, School Board, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specific parties. �� October 18,2000 South Portland, Maine 4 Ci7'1'OF BANGOR,A9AINE Schtvlulc of ExpcnJitures uf FeJcraS Awards E�or ycar ended.�wie 30,i000 Pass- FcJcr:J itu�uugh/ CFDA Ae�ard gr:mtur 13eginniug Rerenue Ending PeJeral Awards number amount number baiancc Federal State Othcr Expenditures balance Neceived Dire� Dcpartment of Housing and Urban Development: Cnmmunity Dcvelopment Block GraMs: B-98-MC-23-0004 i4.218 1,244,000 N/A (383�4G) 456,233 - - 72,987 - B-99-MG23-0004 14.218 1,252,000 N/A - 742,072 - 728,418 1,699,642 (229,152) Supporlive tlousing: ME061397•Q201(87�1) 14.235 348,581 N/A - 114,63G - - 103,545 ll,091 ME 0GI,9G-0102(87173 14.235 46,G95 N/A 1,480 - - - 740 740 ME OGI39G-Oi05(8713) 14.235 G3,000 N/A - 14,585 - - 14,585 - ME 0GI39G-OIOG(8719) 14235 395,000 N/A - 72,370 - - 72,370 - Shel;er Plus Care: MEOGC93-I135"IRA 14238 740,160 N/A 44G 150,535 - - ISQ981 - A4G06C93-I!35PRP, 14.238 558,OOC N/A 14 28,090 - - 2�5,109 - 'i'n:al Depa�yment of Housing and Urban Develn�nncrt (38 f,301) 1,578,521 - 728,418 2,142,959 (�I�,3'1) ;}zpartment oih�sr'.ce: wps Fast 16.'l10 3C3,69p 95Ci'WX3G79 - 44,764 - 14,922 59,686 - 7'otal Depann,ent of Ju�:ice - 44,764 - 14,922 59,686 - 9epar.ment o:Tzansportation: Aiipon lmprovement Plar.: 3-23-0005_23 20.106 1,270,724 N/A (3,3I5) 4,353 242 65 l,345 - 3=?i-0005-�4 20.I06 2,Z50,800 N/A (808,46a) 1,941,822 107,579 107,879 1,348,G16 - 3-23-0005-25 �0.10G IOG,305 N/A - - - - 44,421 (44,421) 3-23-Oi105-27 20.106 1,793,'.54 N/A - - - - i?3,381 (123,3811 3-23-0�05-2R 20.106 i,278,85� N/A - - - - 492 (492) Pass_nger`r'a:i;iry ChargNs N/A - N/A 310,030 496,929 - 20,158 977 826,140 _^ _9btalDepa�mento!'Transpoiyation (50?,249) 2,443,104 108,121 I28,102 1,519,232 657,846 L'uvironmental Prolection Agency,Suecial Purpcse 66.606 G,Q60,000 N/A - I,OG8,549 - 874,2G7 1,942,816 - �s Thraueh Department of Agricultwc,passed Ilirough Maine Depailment of ;iur.ian Seivices: �Vomer,lnfant aiid Cfiildren-Admin: WiC 02>9 IO.SSJ 403,_34 N/A - 98,OG2 - - 98,062 - W1CO3-00 10.557 388,394 N/A - 277,iGG - - 277,166 - Women,Infant and Chiidren-1=ood: W1C 02-99 10.557 1,797,747 N/A - 483,800 - - 483,800 - WICO2-00 10.557 N/P. N/A - I,C98,886 - - 1,098,886 - Passed tiiroagh Maine Departmenc of Education: ' 1=ood Dis!ribut:on-]�acd Douaiion I'rograne 10.550 - QI3-G 134-OS !7,708 38,756 - - 45,616 10,848 � ScliooiRrcakfastProgram 10.553 - 013J127-OS - SI,741 - - 51,741 - School Luuch 1'regram 10.555 - 013J12E-OS - 384,506 G,GGO - 391,166 - Sununcr I�ood Program 10.559 - 01.'.-7130-OS - 12.002 • - 12,002 - Total Dcp:irun�u!of Agricultur 17,708 2,444.919 6,660 - 2,458,439 1Q848 5 CITY OF BANGOR,MAlIVE Schedule of Ezpenditures uf Federal Awards,Co:itinued l+i�r ycar ettideJ.lune 30,2000 Pass- Federal lhruagh/ CFllA Award grantur 13egiuuing Revenue Ending Federsi�l.tvare9s ttuo�her atetuunt �iumber balance Federal Stale Other__ �xpeuditures balance St' t::ss Tlirou�h,Cootiisued Eav¢�onmental Yrotection Agency,passed tivough '- Ihe State Revolving Loan Fund Proynm: Cemhined Sewer Qverflaw 66.�SR $ - N/A - 7,900 - 23,669 31,569 - P.epa�iment oPHeallh Se llumaa Services,pnssed tivough , '` $ureau of Heulth: Bangor Childreds Dental Clinic 93.994 1G,000 BH 00-4 - IG,OUO - 174,295 190,295 - "' S"I7�Ri1V Clinicul and EpiJemiologic Services 93977 I08,900 BH 99-1G8 2,970 54,450 - 1G,757 75,079 (902) ' STD/:i!V Cluiical und Epidemiologic Se�vices 93.977 I1Q,400 Bii 00-61 - 55,450 - 13,997 74,415 (4,968) ' Lnmunira�ion:'rngram Nuising 93.268 20,J00 BH 98-5G G,G53 10,000 - 23,527 25,218 I4,9G2 "' 3nmuni�artion Prob�am A�ursing 93.268 l0,OQ0 BH OC-72 - - - 31,077 33,377. (2,1.95} Jep:u:rnent ot'Heatth 3 F3uman Sen�ices,uasse�tivough !L-e A^.e;ne:�ep�i�meN��Y Nducuteon: I;iV/F:1l�S Prcvei�iion Ecl Cireul 9.3.938 - p13-0SA•31G9-IS i,384 - - - - 1,3R� - '"o!a!De��aitrner.t r,f i[eoiU�S tlun!nn Scivices ?i;0117 135,900 - ?59,653 348,379---��F,7 t;�� iJe�r.;i:nenf of Education,pLssed th:ough the Maine Dep•rdmcnt oi rducr.l:on: Adult}3a_cic Educafion 84.1102 �}5,872 013-OSA-'7163-092 13 45,872 - - 45,885 - � Adult Aasic Bducution 84.002 8,COIl 013-05.4-7i58-092 - $,OUO - - 8,000 _ T�tie 1A 84A10 845,710 013-0SA-G334-132 8i1,700 845,710 - - 792,815 133,595 1-e�le iC tl4.011 71,091 013-OSA-7ISi-l32 36,506 71,OI1 - - 89,092 18,505 Ti11e VI 84.298 2G,954 015-05A-51)G3-Ul2 4,1118 2G,954 - - 26,95� 4,lOx �is.�uowerLlemenlnry and Sccondmy &4.281 2G,757 013;)SA-8091-102 - 2G,75i - - 26,757 - Special Ed I.ocsl Enti!lemen!1'i4le VA EHA 84.G27 3t7,52Q 013-OSA-G317-I22 - 317,520 - - 309,877 7,643 L;ipacted Aid-TiUe VI❑ 84.041 11,908 013-OSA-7155-12 - 11,90R - - 11,908 - limcrgcocylmmigrnnl %4.1C2 2,IG0 013-OSA-5011-40 - 2,1G0 - - 1,974 186 Clnssroom Reduction 84.340 157,722 Q13-OSA-5088-GU2 - 157,722 - - 157,722 - ]?rssed throagh ihe Maine DepaAment of Sui�sWnce i\buse: Dn�s Free Schools nnd Communilics 84.UR( 22,973 013-OSA-6346-57 3,008 22,973 - - 22,954 3,027 Total I�cpnrlme_n.t ofEch�cauon 124,335 1,536,GG7 - - 1,493,938 167,OG4 TJrbu�t Mass Trxnsporfution Assistnnce,;�assed through Maine � P.eoaetmer.t oFTransportaEion: � Operating 20507 269,725 NIE-90-X113 - 233,234 36,491 599,969 869,694 - (Jperaling 2U.51;7 14,L�23 ME-90-a105 - 14,823 - 3,706 18,529 - RTAP 20.509 3,G20 Iv1E-18-X-020 - 3,G20 - - 3,620 - R'I'AP 20.509 50G ME-18-a-025 - 506 - - 506 - Capita( 20.507 574 ME-90-J:U92 - 574 - 145 719 - Capiiai 20.507 30,460 Ml:-9U-X094 - 28,iGG - 9,305 37,491 - Capila( 20.507 2I3,500 NIE-9l1-X105 - 17,417 - 7,489 24,906 - 'I�otal Urban Macs Trunsporta!�on Assistuuce - 298,340 36,491 620,G14 955,445 - ' '1'ulal FeJeral A�wards b (73U,51111) 9,Si8,6G4 151,272 2,649,645 �►,002,463 62G,618 , G CITY OF BANGOR,MAINE Notes to Schedule of Expenditures of Federal Awards June 30,2000 PURPOSE OF THE SCHEDULE Office of Management and Budget(OMB)Circular A-133, Audits of States,Local Governments and Non-profit Or�anizations,requires a Schedule of Expenditures of Federal Awards showing total expenditures for each federal award program as identified in the Catalog of Federal Domestic Assistance (CFDA). SIGNIFICANT ACCOLTNTING POLICIES A. Reporting Entity-The accompanying schedule includes ail federal award programs of the City of Bangor for the fiscal year ended June 30,2000. The reporting entity is defined in Notes to Financial Statements of the City of Bangor. B. Basis of Presentation -The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with OMB Circular A-133. 1. Pursuai�t to OMB Circular A-133, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans; loan guarantees,property, interest subsidies, insurance or direct appropriations. '2.. Major- OMB Circular A-133 establishes the level of expenditures or eYpenses to be used in definin; major federal award programs. Major programs for the City of Bangor ar.e identified in the sammary of auditor's results in the Schedule of Findings and Questioned Costs. C. Basis of�ccounting-The information presented in the Schedule of Expenditures�of Federal Awards is �resented on the modified accrual basis of accounting,which is consistent with the reporting in the City's financial statements. � �,�..o,�. CITY OF BANGOR,MAINE Schedule of Findings and Questioned Costs June 30,2000 Section I- Summary of Auditor's Results Firrancia!Statements Type of auditor's report issued: Unqualified � Internal control over financial reporting: Material weaknesses identified? no Reportable conditions identified - not considered to be a material weakness? yes Noncompliance material to financial statements noted? no Federci Awards Internal Control over major programs: Material weaknesses identified? no Reportable conditions identified not considered to be material weaknesses? no Type of auditor's report issued on compliance , for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with � Circular A-133, Section .510(a)? . . no �� . . Identification of major programs: � CFDA Numbers Name of Federal Program or Cluster 10.557 WIC -Nutrition Proaram 20.507 MDOT- Capital and Operating Assistance ' 10.553 - 10.559 School Lunch Cluster __ 20.106 DOT- Airport Improvement Plan 66.606 EPA - Special Purpose Dollar threshold used to distinguish between Type A and Type B programs: $300,000 Auditee qualified as low-risk auditee? no 8 CITY OF BANGOR,MAINE Schedule of Findings and Questioned Costs,Continued Section II-Findings Required to be Reported Under Government Auditing Standards #2000-1 - Sewer System Controls Controls at the sewer utility are potentially weakened because of the utility's relationship with the Bangor Water District,which is a separate, non-City entity. The problem arises because the water and sewer utilities share many aspects of billing and collection. Specifically, sewer bills are based upon water usage data, as provided by the water districts;water and sewer bills are mailed together; sewer payments may be made at, among other places,the water district; and the water district's billing and payment sofiware,which is incompatible with the City's general accounting software, is also employed by the sewer utility. As a result, a number of problems arise. First, where payments are made a.t the water district, City funds remain outside the City control for the period of time between their receipt from ca�stomers and the forwarding of payment to the City. This, combined with the increased handling of the City assets intr.oduces the potential for diversion cf City property by non-City employees. Second, �he flow of funds between the t�vo uti!ities and their timing often results in the"float"of relatively large amounts due the City. Third,the incompatibility of systems between the sewer utility and the rest of City government makes timely tr�cking of sewer utiliry performance difficult. Further, it makes reconcilement increasingly important and time consuming. We recommend the City review its relationship with the water utility to correct these cash handling and accounting deficiencies. 9 CITY OF BANGOR,MAINE Schedule of Findings and Questioned Costs,Continued Section III-Findings and Questioned Costs For Federal Awards _ None ( 10 RUNYON KERSTEEN OUELLETTE Certified Public Accountants & Business Consultants Statement of Assurance and Determination � � Under 20-A MRSA,§6051 City Council � City of Bangor, Maine: — We have audited the financial statements of the Ciry of Bangor including the Bangor School . �. Department as of and for the year ended June 30,2000, in accordance with applicable State laws relating to financial and compliance audits. In connection with the audit: . � We determined that proper budgetary controls were in effect. . We reviewed the annual financial report(Form EF-M-45) submitted to the State of Maine `__ Department of Education. Based on our review, we are not aware of any material modifications that should be made to the EF-M-45. . We determined that the School Department has complied with the applicable provisions of the Maine School Finance Act. This report is issued as a supplement to our report dated October 18,2000 on the City of Bangor financial statements, and does not affect or modify that report. . 1�� Q�u�� October 18,2000 South Portland, Maine 20 Long Creek Drive South Portiand, ME 04106 11 207•773•z986 or 1•800•486-1784 � � "'" FAX 207•7723361 or 1-800-486-1785 http://wa�w.rko-cpas.com The CPA. Never Underestimate The Value CI TY OF �AN'�OR . . , , . . . . , „ Financial Overview Presentedby: Kev PerfOi-mance Indicators Glenn Kersteen and Roger Lebreux � u�:�'l4��P+� b(IERSTEEN OUELLETTE ASSetS Recently,the City of Bangor completed the financial audit process.The School Department is part of the City and has been included in the City's financial statements. 16,000 We are pleased to report that the City received an unqualified opinion,which means the financial statements are fairly stated in all 14,000 material respects. Further,the City reported no material weakness with its internal controls. 12,000 The City applied for and received the Certificate - of Achievement in Financial Reporting for its 2000 financial statements, its fourth consecutive 10,000 award, and the City's finance staff has done a remarkable job in producing that report. The remainder of this publication is dedicated to 8,000 providing you with the financial results for fiscal year 2001. We hope you find this information useful and 6,000 understandable. Finalty,we wish to express our appreciation to all those who were so helpful to us during the 4,000 audit process. It truly is a pleasure working with � your staff. INSIUC: 2,000 1. Assets p 2. Liabilities And Fund l�:yuit� casn irnestrT,e�tS Ta�s Accounts Due from 3. Revenues Table ��e��ebie recei�ebles ocr,er�,nds 4. Expenditure Table o 2ooi ss is,osa 2,2es 2,as� i.ssa 5. Collections ■200o sio i�,zas z,sso z,s�s z,sas 6. Tax Rates 7. Fund Balance Analvsis 8. Retained Earnin�;s- l�:nterprise SUMMARY OF SIGNIFICANT CHANGES Funds 9. Retained Earnings-Sewer and • The cash and investments increased overall by approximately Airport and Comparati�c $3.3MM. Collection Rates 10. Comparitive Bud�et Ratios •Outstanding taxes and liens decreased despite the slight decrease in l l. Revenues and Expenditures Charts the collection rate. 12. Debt Per Capita,Other Funds and Conclusion •Accounts receivable and due from other governments decreased by �K K 0 K -s'� z��t�� $236M. Okcllctta * Coty of �Bangor 1 CITY OF BANGOR GENERAL FUND LIABILITIES SUMMARY OF SIGNIFICANT 3,50o CHANGES 3,000 •The most significant liability, accrued wages, increased by $432M. Accrued 2,500 wages represents payroll earned in June of 2001, but paid in July of 2001, as well as accumulated vacation and 2,000 sick time. 1 �. 1,500 ' • Deferred revenue represents taxes � still unpaid 60 days after the end of the 1,000 t��3 year. These amounts are not 500 �:;:• recognized as revenues in the current �;: year. - � � •Accounts payable increased by Accts Accrued C�ferred Workers approximately $61 M. payable w ages revenues comp ins ■2001 931 3,109 2,212 608 ■2000 870 2,677 2,327 608 GENERAL FUND EQUITY SUMMARY OF SIGNIFICANT CHANGES s,000 • Reserve fund balance decreased by �,000 $593M. Reserves include $1.580MM s,000 for long-term advances to other funds. 5,000 a,000 • City undesignated fund balance increased by $791 M primarily due to 3,00o the favorable revenue and 2,00o expenditure variances. �,000 p • School fund balances increased by (i,000) $257M on a GAAP basis. Reserved Designated Gty �signated Undesignated School Gty ❑2001 2,315 5,635 (483) 7,870 ■2000 2,908 4,529 (740) 7,079 r�yKKl�OK �-�'�� /\G4dtGGK �,,�s OKGCCC�tC � City of Bangor 2 �� "I7� O�' BAI�ICO�? GENERAL FUND REVENUES ii ; i � � i � r Taxes 37,888,978 38,504,336 615,358 Licenses, permits 380,785 392,778 11,993 Intergovernmental 18,008,259 19,005,777 997,518 Charges for services 8,995,151 9,023,331 28,180 Fees and fines 27,950 15,106 (12,844) Investment earnings 701,243 1,187,296 486,053 Other 8,898 20,04G 11,148 Use of surplus 1,714,194 29,047 (1,685,147) Total Reve�tue 67,72_5,458 68,177,717 452,259 SUMMARY OF SIGNIFICANT CHANGES • Tax revenue exeeeded the budget because of the change in deferred propert�� taxes and excise tax collections were higher then anticipated. • Interest inco��e eaceeded the budget because the City reccived better interest ra�es then were expected on investments and the allocation method was changed. • The variance in the use of surplus is due to the budgeted use of undesignated fund balance of 1.335MM and prior year school carryover amount, which is used for budgetary purposes but not reported as revenue. �KK�OK ��s z��dt�� OKcllcttc * �i�ty o� Bangor 3 CITY OF' BANGOR GENERAL FUND EXPENDITURES : i � � i �i i � General governn�ent 3,909,354 3,737,126 172,228 Fublic buildings &services 7,693,360 7,108,393 584,967 Healtl� w�elfare, recreation 2,795,732 2,716,527 79,205 Public safety 10,252,560 10,252,977 (41'� Fi�'ucc�ion 34,240,758 34,277,778 (37,020) Insw�co�ce cmd fringe 1,557,059 1,519,807 37,252 O�her agencies 3,521,104 3,533,309 (12,20� Unclass�ed 8,025 - 8,025 I�bt service 1,207,915 1,197,825 10,090 TlFprrymerrts 278,324 308,827 (30,503) Op�erating transfers 2,261,267 2,261,776 (509) Total experiditures 67,725,458 66,914,345 811,ll3 SUMMARY OF SIGNIFICANT CHANGES • General goverilment expenditures are under budget mostly due to two vacancies in the Economic Development Office. • Public buildings& services expenditures were under budget mosdy due to large number of vacant positions. • Health,welfare and recreation expenditures were under budget due to less actual claims then were expected. �KKljOK �!�s �GRdtGCK -l�� Oacllcttc �f Coty of Bnngor 4 CITY OF BANGOR PROPERTY TAX COLLECTION RATES f -- i oz oo°io -� � i i � �oo.00°ro i � sa.00�io 96.00% 94.00°/a 92.00% 90.00% 19�2 1993 1994 1�95 1996 1997 1998 1999 2000 2001 ■All years 97.92% 100.01% 101.25% 99.83% 100.08% 100.03% 100.40% 100.37% 99.13% 101.34% ■Current years 92.62% 92.65% 94.15% 94.28% 95.35% 94.98% 95.60% 95.70% 97.00% 96.90% OBSERVATIONS • After a slight drop in the early 1990's, tax collections of current taxes remained stable at 94- 97% of the commitment. • In 7 of the last 10 years, total tax collections have exceeded the commitment. This means that coliections of liens has been successful. r�yKK�OK �-f� /\G4dtGGK t� OKcll�ttc � Coty of Bangor 5 CITY OF BANGOR PROPERTY TAX RATES �s oo _ . ?�o0 ��o0 22.00 21 00 ]O OU I y 00 18 OU 17 Uu 16 OU I5 00 1u89 19y0 1�1v1 199) lyU� laUd lu9? 1�19b IQa1 1948 IU4Q ?000 '_001 0 lU_50 17_7� 18 90 21 30 21 J0 ?2 00 '_�0? 23_I� ?2 40 23 3i 23 RO '_3 70 ?�.45 � � - �• - - -� - - _• - • - - �_ - - - r�yKKf`OK �!�,�� ^G4dtGCK l�i� O�ccllcttc �" Cdty of Bangor 6 CITY OF BANGOR FUND BALANCE ANALYSIS 1991 - 2001 i s,000 14,000 12,000 a. 10,000 �`� � . �� 8,000 �M � s .,� 6,000 � ; 4,000 .:� 2,000 � 0 (2,000) `".� _ �: <•�� , . � r.,a �..:� <��, _ '�a .;. � '�. `� 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 �Reserved 144 415 716 295 318 201 2,107 2,429 3,389 2,908 2,315 ❑Designated 2,912 1,642 2,321 2,573 3,169 4,025 2,129 2,659 3,535 3,789 5,152 �Undesignated (763) 824 1,797 3,380 4,082 4,371 3,658 3,945 4,242 7,079 7,870 OBSERVATIONS • Bangor's Reserved fund balances and Designated fund balances have changed significantiy over the past four years due to a reclassification of Due from Other Funds. Undesignated fund balance has recovered from a deficit in 1991 to a healthy �7 870MM in 2001. ,�uKyoK *--� z�Rat��K �� O��Cl�tt� � ��ty af Bangor 7 CITY OF' BANGOR UNAPPROPRIATED RETAINED EARNINGS - ENTERPRISE FUNDS 2,000 1,500 1,000 500 0 (500) (1,000) (�,500) . ,, ,. .: 1996 1997 1998 1999 2000 2001 B Park Woods (132) (113) (80) (59) (59) (79) O Nursing facility (320) (546) (661) (1,095) (669) 0 � Parking Fund (90) (69) 1 105 117 176 ■ Bass Park (973) (1,122) (1,209) (1,273) (1,426) (1,428) ❑Golf Course 471 604 748 1,448 1,678 1,772 ■ Econom ic Dev. 0 49 134 324 1,055 1,431 OBSERVATIONS • Of the eight enterprise funds operated by the City, Bass Park has a significant deficit. Addressing this shortfall has become a major thrust of the City's management. This chart inciudes the six smaller enterprise funds. In the current year, the City spun-off the City Nursing Facility into a separate non-profit organization The next chart inciudes the Sewer and Airport funds. �uK�o.c --f t z��ar��K ,��- OKcllcttc � Ci�ity of �angor 8 G'ITY OF BANGOR UNAPPROPRIATED RETAINED EARNINGS - SEWER AND AIRPORT FUNDS 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1996 1997 1998 t�9b � 2000 2001 ■Sewer Fund 10,128 12,219 13,393 14,863 16,297 17,497 ■Ai ort 28.636 29,178 30,630 31,527 31.982 32,652 TAX COLLECTIONS COMPARED TO OTHER CITIES 99% 98% 97% 96% OBSERVATIONS 95% 94% • Bangor's tax coilection rate is 93% consistent with 92% cities in Maine of similar size 91��° 9�% 1997 �998 1999 2000 2001 ■Bangor 95.04% 95.60% 95.70% 97.00% 96.90% O Lew iston 93.10% 94.33% 94.47°� 95.18% 95.55°/ O Auburn 96.40% 95.40% 97.60% 97.80% 98.00% ❑Pbrtland 97.60% 97.90% 98.55% 98.53% 98.07% �KK�OK �-r� ■Biddeford 94.54% 96.03% 96.39% 97.28% 97.00% z��dt��K :� d�cllcttc City of Bangor 9 CITY OF BANGOR UNDESIGNATED FUND BALANCE AS A % OF BUDGET COMPARED TO OTHER CITIES 14% -- __ — � 12% ;` � ��` , 10% 11.70% $% 6% '�:; s.�o% �_ ��: 4% � �i� 2% ; � ; 0% 2001 0 Bangor ■ Augusta ■ Portland � Biddeford ■ Lewiston DEBT SERVICE AS A % OF BUDGET COMPARED TO OTHER CITIES 12% — 10% 8% iq� � s% 5.90% �� 4% 5.16% ,�; � 2% 0% �;; n 2001 ❑ Bangor ■ Augusta � Auburn ■ Portland � Biddeford ■ Lewiston RrLK�OK �+'�S z�tdt�� O.ccllcttc * City of �iango�° 10 CITY OF BANGOR 2001 REVENUES AND EXPENDITURES — GENERAL FUND Taxes Lic.&Permits 56.50,,,� Q58°ro i. t� Other 0.03% hnergovernmental 28.05% 6rvesunen[eamings I.74% Charges forserv�ces I 3.0 S% Pees and Fines 0.02°�o Education 53.02 io P uhlic S afety I5 86°�0 his urance and fringe Health,welfare& 2.35% recreation 4 20% � -- Public building&services �Otheragencies I0.99% 5.47°/ Generalgo��ernment 5.78% Tff�paymenls 0.48 ro Debt serv�ce I.85% �KKfjOK �'�r /��tdtGGK �'!"" O.�cllcttc �`� City of Bangor i l ' � . , • � . . . . . �� ,�� ■ ■ ■ ■ ■ 1 �� ' �■ ■ . '■ , ■ ■ ■ ■ ■ ' �� ' `;■ ■ ■ '■ ■ ■ ■ ■ ■ ' � ' �■ ■--.■__..■.--- ■----■.—■- __■ __■ _ 1 .. . .. . .. .. .. .. • ... �� ee� ... ,. e� ... .: .,: e� ,. . e� .� � . . :. ... ... . .-. .- .. -„ . , - .. . • . . - . . • •• ��• •� •�� '•� ■ •• ��• � •• •�• -- . - - � = � • - _ _ � _ �� :�• •• • •• • • FINAL WORDS This presentation is intended as a tool to assist the City Councii and management in understanding its financial operating results. The information contained in this publication should be read in conjunction '-''. :�: with the audited financial statements and ' related disclosures and should not be used for any other purposes , without the expressed consent of RUNYON KERSTEEN OUELLETTE Please contact us at 207-773-2986 or 1-800-486-1784 20 Long Creek Drive,South Portland,ME 04106 i . : . . . OMB No. 0348-0057 F:$RM SFFSAC U.S.DEPARTMENT OF COMMERCE-BUREAU OF THE CENSUS (8•97) � ACTING AS COLLECTING AGENT FOR OFFICE OF MANAGEMENTANO BUDGET Data Collection Form for Repo�ting on AUDITS OF STATES, LOCAL GOVERNMENTS,AND NON-PROFIT ORGANIZATIONS Complete this form, as required by OMB Circullar A-133, "Audits • Single Audit Clearinghouse of States, Local Governments, and Non-Profit Organizations." 1201 E.10'"Street Jeffersonville, IN 47132 ' � ' GENERAL INFORMATION (To be comp/eted by auditee, except for Item 7) 1. Fiscal year ending date for this submission 2. Type of Circular A-133 audit mm/dd/yy 6/30/00 1 �Single audit 2 � Program-specific audit 3. Audit period covered FEDERAL 4. Date received by Federal 1 �Annual 3 DOther- Months GOVERNMENT clearinghouse 2 � Biennial USE ONLY 5. Employer ldentification Number(EIN) a. Auditee EIN 016000020 b. Are multiple EINs covered in this report? 1 ❑Yes 2 � No 6.AUDITEE INFORMATION 7.AUDITOR INFORMATION (To be completed by auditor) a.Auditee name a. Auditor name .+� City of Bangor Runyon Kersteen Ouellette ) b.Auditee address (Number and sfreet) b.Auditor address (Number and street) Street 73 Harlow Street Street 20 Long Creek Drive City Bangor City South Portland � State ME ZIP Code 04401 State Maine ZIP Code 04106 c.Auditee contact c. Auditor contact Name Name Glenn S. Kersteen Title Title Principal d.Auditee contact telephone d. Auditor contact telephone 207 773-2986 e.Auditee contact FAX (Optional) e.Auditor contact FAX(Optional) 207 772-3361 f.Auditee contact E-mail (Optional) f.Auditor contact E-mail (Optional) rko@rko-cpas.com EIN: 016000020 g.AUDITEE CERTIFICATION STATEMENT-This is to certify g.AUDITOR STATEMENT-The data elements and information that, to the best of my knowledge and belief,the auditee has: included in this form are limited to those prescribed by OMB (1) Engaged an auditor to perform an audit in accordance Circular A-133.The information included in Parts II and III of with the provisions of OMB Circular A-133 for the period the form, except for Part III, Items 5 and 6,was transferred described in Part I, Items 1 and 3; (2)the auditor has from the auditor's report(s)for the period described in Part I, completed such audit and presented a signed audit report Items 1 and 3, and is not a substitute for such reports.The which states that the audit was conducted in accordance with auditor has not performed any auditing procedures since the the provisions of the Circular; and, (3)the information date of the auditor's report(s).A copy of the reporting package included in Parts I, II,and III of this data collection form is required by OMB Circular A-133,which includes the complete accurate and complete. I declare that the foregoing is true auditor's report(s), is available in its entirety from the auditee at and correct. the address provided in Part I of this form.As required by OMB Circular A-133,the information in Parts II and III of this form was entered in this form by the auditor based on information included in the reporting package.The auditor has not performed any additional auditing procedures in connection with the completion of this form. Signature of certifying official D8t@ MonthDayYear NamelTitle of certifying official Signature of auditor D8t@ Month Day Year i�-�—�-'�e.� � c��4 �/�� ' � ' GENERAL INFORMATION -Continued 8. Indicate whether the auditee has either a Federal cognizant or oversight agency for audit. (Mark(X) one box) 1 ❑Cognizant agency 2 � Oversight agency 9. Name of Federal cognizant or oversight agency for audit. (Mark(X) one box) o� �African Development ss ❑ Federal Emergency �s Justice � os e Peace Corps Foundation Management Agency �� Labor ss Small Business 02 ❑Agency for sa ❑ Federal Mediation and as National Aeronautics Administration International Conciliation Service and Space ss ❑Social Security Development ss ❑General Services Administration Administration io Agriculture Administration ss ❑National Archives and �9 State �� Commerce ss ❑Health and Human Records Administration zo Transportation 94 Corporation for Services os ❑National Endowment for 2� Treasury National and ta ❑Housing and Urban the Arts s2 United States Community Service Development os ❑National Endowment for Information Agency �z Defense o3 ❑Institute for Museum the Humanities sa Veterans Affairs sa Education Services a� �National Science 8 Other-Specify: s� Energy oa ❑Inter-American Foundation ss Environmental Foundation o� ❑Office of National Drug Protection Agency �s ❑Interior Control Policy ' � ' FINANCIAL STATEMENTS (To be comp/eted by auditor) 1. Type of audit report (Mark(X) one box) � � Unqualified opinion 2❑ Qualified opinion s[]Adverse opinion a❑ Disclaimer of opinion 2. Is a "going concern"explanatory paragraph included in the audit report? � ❑Yes 2� No 3. Is a reportable condition disclosed? � Yes 2 No-SKIP to Item 5 4. Is any reportable condition reported as a material weakness? i ❑Yes 2� No 5. Is a material noncompliance disclosed? � �Yes 2� No i.� � EIN: 016000020 ' � ' FEDERAL PROGRAMS (To be completed by auditor) 1. Type of audit report on major program compliance � � Unqualified opinion 2 0 Qualified opinion s❑Adverse opinion a❑ Disclaimer of opinion 2. What is the dollar threshold to distinguish Type A and Type B programs§_520(b)? $300,000 3. Did the auditee qualify as a low-risk auditee (§_.530)? � ❑Yes 2� No 4. Are there any audit findings required to be reported under§_510(a)? � �Yes 2� No 5. Which Federal Agencies are required to receive the reporting package? (Mark(X) all that apply) o� ❑African Development s3 ❑ Federal Emergency �s Justice os 8 Peace Corps Foundation Management Agency » Labor 5s Small Business 02 �Agency for sa ❑ Federal Mediation and 43 National Aeronautics Administration International Conciliation Service and Space ss ❑Social Security Development ss ❑General Services Administration Administration �o Agriculture Administration ss ❑National Archives and �s State �� Commerce s3 ❑Health and Human Records 2o Transportation sa Corporation for Services Administration 2� Treasury National and �a �Housing and Urban o5 ❑National Endowment a2 United States Community Service Development for the Arts Information Agency �2 Defense o3 ❑Institute for Museum os ❑National Endowment sa Veterans Affairs aa Education Services for the Humanities oo None s� Energy oa ❑Inter-American a� ❑National Science Other-Specify: ss Environmental Foundation Foundation Protection Agency �5 ❑Interior o� ❑Office of National Drug Control Policy . EIN: 016000020 - ' � - FEDERAL PROGRAMS - Continued 6. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 7. AUDIT FINDINGS AND QUESTIONED COSTS CFDA Name of Federal Amount expended Major Type of Amount of Internal Audit finding number' program program compliance questioned control reference (c) requirement costs findings3 number(s) ( a ) ( b ) (a ) 2 (c) (d) (e) b 84.186 Safe and Drug-Free Schools and , � Yes O � A N/A Communities State Grants 2 No 2 B 3 C 14.218 Community Development Block , , � Yes O � A N/A Grants/Entitlement Grants 2 No 2 B 3 C 14.235 Supportive Housing Program , 1 Yes O � A N/A 2 No z B 3 C 14238 Shelter Plus Care , � Yes O � A N/A 2 No 2 B 3 C 16.710 Public Safety Partnership and Community , � Yes O t A N/A Policing Grants 2 No 2 B 3 C 20.106 Airport Improvement Program , , � Yes O � A N/A 2 No 2 B 3 C 20.xxx Passenger Facility Charges . � Yes O � A N/A 2 No 2 B 3 C 66.606 Surveys, Studies, Investigations and Special , , � Yes O � A N/A Purpose 2 No 2 B 3 C 10.557 Special Supplemental Nutrition Program for , , � Yes O � A N/A Women 2 No 2 B 3 C 10.550 Food Distribution , � Yes O � A N/A 2 No 2 B 3 C TOTAL FEDERAL AVVARDS EXPENDED ontinue IF ADDITIONAL LINES ARE NEEDED, PLEASE REFER TO THE INSTRUCTIONS FOR OMB CIRCULAR A-133 WORD PROCESSING TEMPLATE EIN: 016000020 ' � - FEDERAL PROGRAMS - Continued 6. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 7. AUDIT FINDINGS AND QUESTIONED COSTS CFDA Name of Federal Amount expended Major Type of Amount of Internal Audit finding number' program program compliance questioned control reference ( c) requirement costs findings3 number(s) ( a ) ( b ) ( a ) 2 (c) (d) (e) b 10.553 School Breakfast Program , � Yes O 1 A N/A 2 No 2 B 3 C 10.555 National School Lunch Program , a Yes O � A N/A 2 No z B 3 C — — -- - 1D.559 Summer Food Service Program for Children , � Yes O � A N/A 2 No 2 B 3 C 66.458 Capitalization Grants for State Revolving , � Yes O i A N/A Funds 2 No 2 B 3 C 93.994 Maternal and Child Health Service Block , � Yes O t A N/A Grant 2 No 2 B 3 C 93.977 Preventive Health Services_Sexually , � Yes O � A N/A Transmitted Diseases 2 No 2 B 3 C 93.268 Immunization Grants , � Yes O � A N/A z No 2 B 3 C 84.002 Adult Education_State Grant Program , � Yes O � A N/A � 2 No 2 B 3 C 84.010 Title I Grants to Local Educational Agencies , � Yes O � A N/A 2 No 2 B 3 C TOTAL FEDERAL AWARDS EXPENDED ontinue IF ADDITIONAL LINES ARE NEEDED, PLEASE REFER TO THE INSTRUCTIONS FOR OMB CIRCULAR A-133 WORD PROCESSING TEMPLATE EIN: 016000020 � � ' FEDERAL PROGRAMS - Continued 6. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 7. AUDIT FINDINGS AND QUESTIONED COSTS CFDA Name of Federal Amount expended Major Type of Amount of Internal Audit finding number' program program compliance questioned control reference (C) requirement costs findings3 number(s) ( a ) ( b ) ( a ) 2 (c) (d) (e) b 84.011 Migrant Education_Basic State Grant , t Yes O � A N/A Program z No 2 B 3 C 84.298 Innovative Education Program Strategies , � Yes O � A N/A 2 No 2 B 3 C_ _ _ _ . __ -- - - - 84.281 Eisenhower Professional Development State , � Yes O � A N/A Grants 2 No 2 B 3 C 84.027 Special Education_Grants to States , � Yes O � A N/A 2 No 2 B " 3 C 20.507 Federal Transit Capital and Operating , � Yes O � A N/A Assistance Formula 2 No 2 B 3 C 84.041 Impact Aid , � Yes O � A N/A 2 No 2 B 3 C 20.509 Public Transportation for Nonurbanized Areas , i Yes O � A N/A 2 No 2 B 3 C 84.162 Emergency Immigrant , � Yes O t A N/A z No 2 B 3 C 84.340 Classroom Reduction , � Yes O � A N/A 2 No z B 3 C � Yes � A z No 2 B 3 C TOTAL FEDERAL AWARDS EXPENDED , , IF ADDITIONAL LINES ARE NEEDED, PLEASE REFER TO THE INSTRUCTIONS FOR OMB CIRCULAR A-133 WORD PROCESSING TEMPLATE 'Or other identifying number when the Catalog of Federal Domestic Assistance(CFDA)number is not available. 2 Type of compliance requirement(Enter the letter(s)of all that apply to audit findings and questioned costs reported for each Federa/program.) A.Activities allowed or unallowed G.Matching,level of effort,earmarking L. Reporting B.Allowable costs/cost principles H.Period of availability of funds M.Subrecipient monitoring C.Cash management I. Procurement N.Special tests and provisions D. Davis-Bacon Act J.Program income 0.None E. Eligibility K.Real property acquisition and F. Equipment and real property management relocation assistance 3 Type of internal control findings(Mark(X)all that apply) A.Material weaknesses B. Reportable conditions C. None reported