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1961 Liquor Dispensary BROEKER & HEN DRICKSON CertIfied Public Accountants NORTHWESTERN BANK BUILDING MINNEAPOLI S 2, MINNES OTA To the Village Council Village of New Hope Her~epin County, Mirm esota We have examined the balance sheet of the VILLAGE OF NEW HOPE, LIQUOR DISPENSARY FUND and the VILIAGE OF NEW HOPE LIQUOR STORE FUND as of December 31, 1961, and the related statements of income and surplus for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. L"'1 our opiniorl.3 the accompanying balance sheet and statements of income and surplus present fairly the financial position of the Village of New Hope Liquor Dispensar~ F~~d and the Village of New Hope Liquor Store Fund at December 31, 19613 and the results of their operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Minneapolis, Minnesota March 2, 1962 g~t~ y' 1t.~~~J VILLAGE OF NEW,HOPE LIQUOR DISPENSARY FUND AND VILLAGE LIQUOR STORE FUND .. COMBINED BALANCE SHEET - DECEMBER 31, 1961 A S S E T S Liquor Village Dispensary Liquor Fund Store Fund Total CURRENT ASSETS: Ca sh- Cash on hand $ 1,241.56 $ - $ 1,241.56 Cash in bank--operation and maintenance account 3,565.81 4,138.89 7,704.70 $ 4,807.37 $ 4,138.89 $ 8,946.26 Inventory, at cost 13,886.44 15,661.25 29,547.69 Due from other funds 2,910.96 - 2,910.96 Total current assets .$ 21,604.77 j 19,800.14 j 41,404.91 FIXED ASSETS, at cost: $ 12,016.64 $ $ 12,016.64 Land - Building 57,156.53 - 57,156.53 Furniture and fixtures 19,791.85 7,694.15 27,486.00 $ 88,965.02 $ 7,694.15 $ 96,659.17 Less- Accumulated depreciation 8,122.77 42.74 8,165.51 $ 80,842.25 $ 7,651.41 j 88,493.66 , .$102,447.02 11> 27,451.55 11>129,898.51 LIABILITIES CURRENT LIABILITIES: CUrrent maturity of bonds payable $ 4,000.00 $ - $ 4,000.00 Accounts payable 3,914.62 9,042.78 12,957.40 Due to other funds 26.55 20,023.52 20,050.07 Accrued Public Employees Retirement 562.21 44.95 607.16 Association contributions Accrued interest on Municipal Building 2,094.58 Revenue Bonds payable 2,094.58 - Total current liabilities $ 10,597.96 $ 29,111.25 $ 39,709.21 MUNICIPAL BUILDING REVENUE BONDS PAYABLE, exclusive of current 82,000.00 maturity included above (See Note) - 82,OOO.OC SURPLUS (deficit)--per accompanying 9,849.06 (1,659.70) 8,189.3E statement .$102,447.02 j 27,451.55 11>129, 898.5i The accompanyLng note is an integral part of this balance sheet. NOTE TO FINANCIAL STATEMENTS The provision underlying the Municipal Building Revenue Bonds payable provides, in part, the following: a. Annual bond maturities vary from $4~000 to $10~000 for each year beginning August 1, 1961 to 1973. Bonds maturing in the years 1961 through 1966 are payable on their respective maturity dates without option of prior payment. Bonds maturing in the years 1971 through 1973 are subject to redemption on or after August 1, 1963 and bonds maturing in the years 1967 through 1970 are subject to redemption on or after August 1, 1966. All prepayments are at the option of the Village and are payable at par plus accrued interest and a premium of $50 per $l~OOO bond. b. The annual interest on the bonds varies from 4.2% to 6.0% dependent upon the year of interest payment and the date of serial maturity. c. Bond interest and redemption shall be payable from the net revenue, as defined. As of December 31, 1961 the Liquor Dispensary Fund had net revenue, as defined, in the amoQut of $18,896.97, and accumulated principal and interest payments on the ~uncipal Building Revenue Bond to December 31~ 1961 totaled $19,717.00. VILLAGE OF NEW HOPE LIQUOR DISPENSARY FUND AND VILLAGE LIQUOR STORE FUND STATEMENTS OF INCOME AND SURPLUS FOR THE YEAR ENDED DECEMBER 31, 1961 INCOME Liquor Village Dispensary Liquor Fund store Fund Total SALES: On sale $ 71)1580.96 $ - $ 71,580.96 Off sale 73,025.67 5,643.63 78,669.30 Total sales $144)1606.63 $ 5,643.63 $150,250.26 COST OF SALES 86,148.94 4,273.93 90)1422.87 Gross profit on sales $ 58,457.69 $ 1,369.70 $ 59,827.39 Per cent to sales 40.4% 24.3% 39.8% OPERATING EXPENSES: Sel1ing- 1,141.16 $ 193252.74 Salaries $ 18)1111.58 $ Public Employees Retirement 44.27 860.27 Association contribution 816.00 Supplies 947.65 43.88 991.53 Laundry 315.72 20.98 336.70 Licenses and taxes 68.50 36.00 104.50 Advertising - 72.50 72.50 cash short 226.37 2.60 228.97 Total selling expenses $ 20,485.82 .$ 1,361.39 A> 21,847.21 Overhead- Utilities $ 2,027.91 $ 283.82 $ 2,311.73 Rent - 500.00 500.00 Maintenance and repairs 410.24 68.00 478,24 Cleaning 1)1744.98 38.18 1,783.16 other contractual services 444.00 208.65 652.65 Supplies 374.87 77.33 452.20 Insurance 1)1112.98 - 13112.98 Tax e s 168.41 - 168,41 Depreciation 23777.17 42.74 2,819.91 Total overhead expenses $ 9)1060.56 -~ 1,218.72 .$ 10,279.28 Administration and general- , Salaries $ 8,145.62 $ 380.00 $ 8,525.62 Public Employees Retirement Association contribution 669.00 - 669.00 Legal and accounting 521.42 60.00 581.42 Office supplies 211.55 9.29 220 . 84. Other 38.10 - 38.10 Total administration and general ~ 9, 585 . 69 ~ 449.29 $ 10,034.9E . Total operating expenses $ 393132~O7 ~. 3,029.40 ~ 42,161.47 Operating income (loss) $ 19,325.62 $ (1,659.70) $ 17,665.92 INTEREST EXPENSE 5)1150.66 - 5,150.66 Net income for the year j 14)1174.96 j(1,659.70).j 12,515.26 -2- SURPLUS BALANCE, DECEMBER 31, 1960 (deficit) $ (4,325.90) $ - $ (4,325.90) ADD- Net income (loss) for the year, 14,174.96 (1,659.70) per statement of income 12,515.26 BALANCE, DECEMBER 31, 1961 (deficit) -$ 9,849.06 j (1,659.70) _$ 8,189.36 The accompanying note is an integral part of these state- ments of income and surplus. VILLAGE OF NEW HOPE LIQUOR DISPENSARY FUND DETERMINA TION OF NET REVENUE FOR THE PERIOD FROM DECEMBER 13, 1958 TO DECEMBER 31, 1961 AS DEFINED IN SECTION 2.2 OF THE RESOLUTION AUTHORIZING ISSUANCE OF REVENUE BONDS Net loss for the period ended December 31~ 1958 (as adjusted) $~4,699.05~ Net loss for the year ended December 31, 1959 3,605.01 Net income for the year ended December 31~ 1960 3~978.16 Net income for the year ended December 31, 1961 14,174.96 $ 9,849.06 Add back- Expenses incurred and accrued which are not deductions from gross revenue in determination of net revenue: Depreciation expenses incurred from December 13, 1958 to December 31~ 1961 $ 8~122.77 Interest expense for the period from August 1, 1958 (date of bond issue) to December 31, 1961 17,811.58 25,934.35 Net income from operations, before deduction of interest and depreciation, for the period from December 13, 1958 $35,783.41 to December 31, 1961 Deduct- Net revenue reserves: Allowance for a reasonable stock of inventory (reflected by inventory balances at December 31, 1961) $13,886.44 Allowance for a reasonable reserve for operation and maintenance emergencies (reflected as approximately one month's 16,886.44 operating expenses) 3,000.00 Net revenue (as defined) for the period from December 13, 1958 to $18~896.97 December 31, 1961 Total principal and interest on revenue bonds $19,717.00 paid to December 31, 1961 iP co tl <; ;t:> co ~ ;t:> t"' P 0 t::1 H P 0 t:I H 'i C't t;I 0 l:J 1-3"l:li:"i l:JC'tl:JO l-~lC/.l ~ l:J ttti€ ~ (1) ~ (1) ~ q ":I~i:"i (1)~(j)~ ":Illl q C't1"P 0 1"'i~ P1"P 1"1"I-'H.O <:0 III I-' (j) f-'o 1-3 ::SPQ (j)1-'(1)f-'o C't::S(j)~1-3 "l:l(1):;O f.Jo S::S I ~iSl;1:j g,f.Jog,~ rara .. ~ :::J , I-'f-'oO'<: 'i1-1l P, ";jC'tl:J .. :::J (j) (1) CI.l (j)tIli:"i (1):::J<D<D <D(i) 0 POH <: ";j:::J 1" ";j<DH 'i<:";j:::J ct";j ~ iS~ ~ t;I III '(1) ct I-' tIltll(D ~ (j) C't ll'ra f.Jo tIl ::SWO <D .. c: W:::JWO f.Jo tIl ~.. ~ I-1l C'tl-'~ tIl I-1l 0 I-1l I-'C'tl-''i I-'C't I-1l 00" 'ill':;O H.l .. 0" OG 0 - ralllCl.l <D 1-1l~ 1-''' 0C't (1) I-'~ I-' .. :::J C't~ ";j S'i~ ";j <1 <D III :;0 <D l:J'" \Olll <D \0" \0 III f-'o C't ::s 'i i< :::J (1) 0\ C't i:"i<D0 :::J 0\ 0\C't I-' --- p'(j) l:zl p P _I-' I-'-ct:;O P I-'llll-' I-' C'tqj 0 <D <DIU ";j ..oll'1;1:j <D C't ";j III C'tll'g ~ .. 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DAKOTA The Village Council Village of Ne\"l Hope, Minnesota Gentlemen: We are enclosing, herewith, ten copies of financial statements as of December 31, 1961 for the Village of New Hope (all funds), the Village of New Hope Liquor Dispensary Fund and the Village of New Hope Waterworks Fund. We are also enclosing five copies of our schedule of determination of net revenue of the Village of New Hope Liquor Dispensary Fund for the period from December 13, 1958 to December 31, 1961 as defined by Section 2.2 of the resolution authorizing the issuance of the revenue bonds, and five copies of the Village of New Hope Liquor Dispensary Fund and Village Liquor Store Fund schedule of retail inventory control for the year ended December 31, 1961. If you have any questions concerning any of the foregoing, please call us_ Very truly yours, Enc. <<::(.