Accountants’ Report and Financial Statements June 30, 2007_part3 potx

Consolidated Public Library District No. 3 Known As Mid-Continent Public Library Notes to Financial Statements June 30, 2007 18 Note 5: Special Termination Benefits The Library has an “Early Retirement Subsidy Program” for qualified employees, whereby the Library will continue to pay for the qualified employee’s health insurance until age 65 or until the employee becomes eligible for Medicare, whichever comes first. To qualify, an employee must be at least 60 years of age and have been employed by the Library for a minimum of 20 consecutive years as a full-time employee at the time of retirement. The Library has recorded a liability for the pre- sent value of the expected future payments for the health insurance on retiring qualified employees. The Library’s total early retirement benefits expense was $28,518 for the year ended June 30, 2007. The following is a summary of the changes in this liability for the year ended June 30, 2007: Balance June 30, 2006 Current Year Earned and Changes in Estimates Payments Balance June 30, 2007 Early retirement benefits $ 200,000 $ 28,518 $ (28,518) $ 200,000 Note 6: Long-term Debt The following table summarizes the changes in governmental activities long-term debt of the Library for the year ended June 30, 2007: Outstanding July 1 Additions Reductions Outstanding June 30 Due Within One Year Certificate of Participation Bonds $ — $ 10,000,000 $ — $ 10,000,000 $ 845,000 Unamortized discount — (15,984) 500 (15,584) — Total $ 0 $ 9,984,016 $ 500 $ 9,984,416 $ 845,000 On March 1, 2007, the Library issued Series 2007 Certificates of Participation Bonds for $10,000,000 to finance the construction of a new library branch. Proceeds were deposited in an es- crow account and reflected in the General Fund as Restricted cash and investments. The Certificates mature on various dates through 2017 at interest rates varying from 3.65%-3.9%. Certificates maturing on or after March 1, 2015 are callable at the option of the District on or after March 1, 2014 at par. This is trial version www.adultpdf.com Consolidated Public Library District No. 3 Known As Mid-Continent Public Library Notes to Financial Statements June 30, 2007 19 Annual debt service requirements are as follows: Principal Interest Total 2008 $ 845,000 $ 376,345 $ 1,221,345 2009 880,000 345,903 1,225,903 2010 910,000 313343 1,223,343 2011 940,000 279673 1,219,673 2012 975,000 244893 1,219,893 2013-2017 5,450,000 644,503 6,094,503 $ 10,000,000 $ 2,204,660 $ 12,204,660 Interest on the Certificates is exempt from Federal and State of Missouri income taxation. The Library capitalizes the net interest costs (income) related specifically to borrowings for the project. Investment income earned from the funds along with the related interest expense capitalized in the construction of the new library branch as of June 30, 2007 was as follows: Interest income $ (142,867) Interest expense 94,186 Net capitalized interest $ (48,681) Note 7: Significant Estimates and Concentrations Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Those matters in- clude the following: • In the ordinary course of business, there are legal proceedings pending against the Library. Management, after consultation with legal counsel, is of the opinion that the ultimate resolution of these proceedings will have no material adverse effect on the financial position of the Library. This is trial version www.adultpdf.com Required Supplementary Information This is trial version www.adultpdf.com Consolidated Public Library District No. 3 Known As Mid-Continent Public Library 20 Revenues and Expenses Compared to Budget Year Ended June 30, 2007 Actual Budget Over (Under) Budget Revenues Property taxes $ 37,622,692 $ 35,396,060 $ 2,226,632 Federal and state grants 25,845 50,000 (24,155) Investment income 2,909,400 1,644,910 1,264,490 Fines, fees and other 1,210,345 600,000 610,345 State aid 277,331 274,055 3,276 $ 42,045,613 $ 37,965,025 $ 4,080,588 Salaries and Benefits Salaries $ 15,080,872 $ 15,098,070 $ (17,198) Payroll taxes 1,133,777 1,236,394 (102,617) Retirement 1,972,539 2,165,314 (192,775) Medical insurance 1,867,138 2,193,054 (325,916) Life insurance 53,709 72,419 (18,710) Employee Assistance Program 8,167 8,167 — Tuition reimbursement 4,659 10,000 (5,341) 20,120,861 20,783,418 (662,557) Books, Periodicals and Other Library Materials Books 4,976,377 5,128,698 (152,321) A-V materials 1,238,254 1,550,000 (311,746) Microfilm 243,400 200,000 43,400 Periodicals 360,322 361,000 (678) OCLC Online Comp. Lib. Ctr. 106,293 115,000 (8,707) Binding 33,788 50,000 (16,212) Electronic resources 2,397,982 2,605,000 (207,018) 9,356,416 10,009,698 (653,282) Occupancy Expenses Buildings 2,844,344 3,931,000 (1,086,656) Rent 101,754 144,500 (42,746) Custodial supplies 92,048 95,000 (2,952) Utilities 695,575 725,000 (29,425) Furniture and equipment repairs 47,984 50,000 (2,016) Equipment maintenance contracts (prepaid) 17,281 30,000 (12,719) Building repairs and maintenance 1,726,028 1,700,910 25,118 Furniture and equipment 165,588 180,000 (14,412) 5,690,602 6,856,410 (1,165,808) (Continued) This is trial version www.adultpdf.com Consolidated Public Library District No. 3 Known As Mid-Continent Public Library Revenues and Expenses Compared to Budget Year Ended June 30, 2007 21 Actual Budget Over (Under) Budget General and Administrative Vehicles $ 84,125 $ 100,000 $ (15,875) Office and printing supplies 345,839 360,000 (14,161) Advertising 197,487 225,000 (27,513) Professional fees 881,429 692,000 189,429 Convention expense 140,578 200,000 (59,422) Automated circulation system 725,371 800,000 (74,629) Memberships and dues 31,162 40,000 (8,838) Postage and freight 469,774 600,000 (130,226) Telephone 282,136 373,000 (90,864) Automotive repairs 14,554 15,000 (446) Gas, oil and lubrication 47,651 50,000 (2,349) Travel and transportation 111,685 110,000 1,685 Insurance 156,597 255,000 (98,403) Contingency and miscellaneous 399,880 517,500 (117,620) 3,888,268 4,337,500 (449,232) $ 39,056,147 $ 41,987,026 $ (2,930,879) Bond Issuance $ 9,984,016 — $ 9,984,016 This is trial version www.adultpdf.com Consolidated Public Library District No. 3 Known As Mid-Continent Public Library Schedule of Funding Progress Year Ended June 30, 2007 22 The following summarizes the Library’s funding progress with respect to the Missouri Government Employees Retirement System (LAGERS). Actuarial Valuation Date (a) Actuarial Value of Assets (b) Actuarial Accrued Liability (b-a) Unfunded Accrued Liability (UAL) (a/b) Funded Ratio (c) Annual Covered Payroll [(b-a)/c] UAL as a Percentage of Covered Payroll February 28, 2005 $ 23,444,813 $ 29,857,915 $ 6,413,102 79% $ 10,933,278 59% February 28, 2006 $ 25,800,207 $ 32,231,309 $ 6,431,102 80% $ 11,237,845 57% February 28, 2007 $ 27,174,769 $ 32,797,866 $ 5,623,097 83% $ 11,541,434 49% Note : The above assets and actuarial accrued liability do not include the assets and present value of benefits associated with the Benefit Reserve Fund and the Casualty Reserve Fund. The actuarial assumptions were changed in conjunction with the February 28, 2007 annual actuarial valuations. For a complete description of the actuarial assumptions used in the annual valuations, please con- tact the LAGERS office in Jefferson City. This is trial version www.adultpdf.com . for the year ended June 30, 2007. The following is a summary of the changes in this liability for the year ended June 30, 2007: Balance June 30, 2006 Current Year Earned and Changes in Estimates. activities long-term debt of the Library for the year ended June 30, 2007: Outstanding July 1 Additions Reductions Outstanding June 30 Due Within One Year Certificate of Participation. Public Library District No. 3 Known As Mid-Continent Public Library Notes to Financial Statements June 30, 2007 18 Note 5: Special Termination Benefits The Library has an “Early Retirement