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Home My WebLink AboutFY 1990 -- BVSWMA Financial StatementsTABLE OF CONTENTS Page Independent Auditors' Report 1 Financial Statements:. Balance Sheet 2 Statement of Revenues, Expenses and Changes in Retained Earnings 3 Statement of Cash Flows 4 Notes to Financial Statements 5 INDEPENDENT AUDITORS' REPORT, To the Administrative Board of Trustees of the Brazos Valley Solid Waste Management Agency: We have ,audited the accompanying balance sheet of the Brazos Valley Solid Waste Management Agency ("BVSWMA") as of September 30, 1990., and the related statements of revenues,, expenses and changes_ in retained earnings, and of cash flows for the period from inception (May 8,.1990) through September 30, 1990. _These financial statements are the responsibility of BVSWMA'.s management Our responsibility is to express,an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial"statements are free of material misstatement. An audit includes examining, on a test basis,, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles.used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such financial statements present fairly,, in all material respects, the financial position of BVSWMA at September 30, 1990, and the results of its operations and its cash flows for the period from inception (May 8, 1990) through. .September 30, 1990'in conformity with generally accepted accounting principles. kd4&-t aJ-v tl a., January 11, 1991 1 BRA20S VALLEY SOLID WASTE MANAGEMENT AGENCY BALANCE SHEET, SEPTEMBER 30, 1990 ASSETS CURRENT ASSETS: Cash Receivables: Accounts Due from College Station Due from Bryan Total current assets PROPERTY AND EQUIPMENT: Land. Landfill improvements Machinery and equipment Construction in progress Total Less accumulated depreciation . Property and equipment, net DEFERRED LANDFILL PERMIT EXPENSES (Less accumulated amortization of.14,166) TOTAL See notes to financial statements_ 1 N i NOTES LIABILITIES -AND FUND EQUITY NOTES CURRENT LIABILITIES: 2 S 230,473 Currentportion of notes payable: Due to College Station 314 S 66,863 97,305 Due to Bryan 3,4 20,072 4 135,772 Accounts payable: 4 54,393 "Trade 57,119 517,943 Due to College Station 4 130,186 Accrued interest.payable: 4 Due to College Station 3,4 32,533 189,600 Due to Bryan 3,4 9,767. 292,000 Total. current liabilities 316,540 768,554 44,459 NOTES PAYABLE: 1,294,613 Due.to College Station 3,4 909,137 66.151 Due to Bryan 3,4 272,928 1,228,462 Total notes payable 1.182.065 Total liabilities 1,498,605 4 195,834 FUND ,EQUITY: Contributed capital 4 170.200 Retained earnings: Reserved for debt service 125,270 Unreserved 148.164 Total retained earnings. 273,434 Total fund equity 443.634 $1,942.239 TOTAL, $1,942.239 BRAZOS VALLEY SOLID WASTE MANAGEMENT AGENCY :STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE PERIOD FROMINCEPTION ('MAY 8, 1990) THROUGH SEPTEMBER 30, 1990 'OPERATING REVENUES - Landfill charges OPERATING EXPENSES: Landfill operator Consultants Equipment rental Insurance Other Total OPERATING INCOME BEFORE, DEPRECIATION AND AMORTIZATION LESS DEPRECIATION AND AMORTIZATION OPERATING INCOME NONOPERATING.REVENUES (EXPENSES)_: Interest income Interest expense: College Station Bryan Other Total. NET INCOME. RETAINED EARNINGS., BEGINNING OF YEAR RETAINED EARNINGS, END OF YEAR. See notes to financial statements. NOTES 4 $724,828 4 281,880 32', 141 17,045 8;330 6,365 345,761 3,4 3,4 379,067 70,317 308,750 1.,656 (32,533) (9,767) 5,328 (35,316) 273,434 -0- $273,.434 - 3 - BRAZOS VALLEY SOLID...WASTE MANAGEMENT AGENCY STATEMENT OF CASH FLOWS .FOR THE PERIOD FROM INCEPTION.(MAY 8, 1990) THROUGH SEPTEMBER 30, 1990 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 437,358 Cash paid to suppliers (158,456) Net cash provided by operating activities 278,902 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES - Payments for purchase of property and equipment (55.413) CASH FLOWS FROM INVESTING,ACTIVITIES: Interest 1,656 Other 5,328 Net cash provided by investing' Activities 6,984 NET INCREASE IN CASH 230,473 CASH,. BEGINNING OF YEAR CASH, END OF YEAR S 230,473 RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net income $ 308,750 Adjustments to reconcile.net income to net cash provided by operating activities: Depreciation and amortization 70,317 Increase in receivables (287,470) Increase in accounts payable 181.305 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 278,902 NONCASH INVESTING AND FINANCING ACTIVITIES - The cities of College Station and Bryan established the Brazos Valley Solid Waste Management Agency in 1990 by transferring property and equipment and deferred assets with appraised values of $1,239,200 and $200,000, respectively,,in exchange for notes payable totalling $1,269,000. The remaining consideration .of $170,200 has been reflected as contributed capital. See notes to financial statements. 4 - BRAZOS VALLEY'SOLID WASTE MANAGEMENT"AGENCY NOTES TO FINANCIAL STATEMENTS FOR THE PERIOD.FROM INCEPTION _.(MAY 8, 1990) THROUGH SEPTEMBER 30, 1990 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Renortincg Entitv - The Brazos Valley Solid Waste ManagementAgency ("BVSWMA") was formed under.a joint solid waste management agreement between the cities of College Station and Bryan, Texas, adopted May 8," 1990. Parties were authorized to make and enter into this agreement under the Interlo.cal Cooperative Agreement Act, Vernon's Annotated Texas Civil Statute, article 4413(32c). Under the terms of this agreement, College Station and Bryan agreed to'cooperatively operate a joint landfill facility for the proper.disposal of solid waste for the two cities and outside customers. BVSWMA is accounted for as a proprietary fund equity investment'in a joint venture in -the financial statements of the two cities. Each city ha,s a 50% ownership in BVSWMA. BVSWMA has contracted with College Station to serve as landfill operator for the facility. BVSWMA is governed by,an Administrative Board of Trustees (the "Board") which is charged with overseeing the daily operating activities of BVSWMA. The Board is comprised of the city manager and a staff person from each -city. At any time, each city has no less than two voting members on the Board. Each city's staff representative to the Board is selected by each city's City Manager. The Mayors of each city serve alternating two-year terms on the Board. Legal oversight of BVSWMA is vested in the City Councils of the two cities. The annual budget is prepared and adopted by the Board and approved by both City Councils. All.contracts and expenditures in.'excess of $10,000 require the approval of'both City Councils. Basis of Accounting - BVSWMA is accounted for.using the accrual basis.of accounting, Revenues are,recognized,as earned, and expenses are recognized as incurred. Property -and Eauipment is stated at the historical" cost of acquisition or construction. Assets from,College Station"and Bryan.(see Note 4) were transferred to BVSWMA at the appraised value of the assets at the date of transfer. Maintenance,,repairs and minor renewals are charged to operating expense. Major property replacements are capitalized. - 5 - Depreciation is recorded on a straight-line basis over the following estimated service lives: ,Landfill improvements Machinery and equipment 10 years 3-7 years Deferred Landfill Permit Expenses, represent the appraised values of.landfill permits.transferred to BVSWMA by College Station and Bryan (see Note 4). The value of.the permits is being amortized on a straight-line basis over the estimated lives of the landfills which is 20 years. 2. CASH At year end, the carrying amount of BVSWMA's cash deposits was .$230,473 and the bank balance was $382,572. The bank balance for BVSWMA has been included under.College Station's bank depository agreement. Under the terms of that agreement, the bank balance was entirely covered by federal depository insurance or by pledged collateral held by a third -party custodian,_in College Station's name. Such total collateralization and insurance coverage is required by state of Texas statutes (Category One credit risk). 3. NOTES PAYABLE Notes payable is comprised of amounts owed to College Station, and Bryan (see Note 4). The interest rate on the two notes payable. li are 8%. Debt service requirements to maturity are as follows: Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Total Colleqe Station Note Brvan Note Principal Interest Principal Interest $ 66,863 $ 76,769 $ 20,072 $ 23,04.6 72,319 711313 2.1,712 211409 78,220 65,412 23,482 19,•637 84,6.02 59',029 25,398 17,721 91,506 52,126 27., 471 15,6148 98,973 44,658 29,712 13,407 107,049 36,583• 32,137 10,982 11.5;784 27,847, 34,759 8,360 125,232 18,399 37,595 5,523 135,452 8,180 40,662 2,456 $976,000 $460.316 $293,000 $138,1891, 4. RELATED PARTY,TRANSACTIONS College Station and Bryan established,BVSWMA.in 1990 by trans- ferring property and equipment and deferred assets with appraised values'of $1,239,200 and $200,000, respectively, in exchange for notes payable totalling $1,269,0.00. The remaining consideration of $17,0,200 has been reflected as contributed capital. BVSWMA receives solid waste from College Station and Bryan and. bills the cities (as well as other customers) at,predetermined tipping.fees for total tonnage deposited.on a monthly basis. Total operating revenues during 1990 from College Station and Bryan were $229,469 and $243,0133, respectively. College Station operates the landfill for BVSWMA and is reimbursed for all costs of operation which totalled $281,880 during 1990. 7 -