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
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BROEKER g HENDRICKSON
Certified 'Pziblic Accountants
NORTHWESTERN BANK BUILDING - MINNEAPOLIS 2,MINNESOTA
TELEPHONE FEDERAL 9-0674
MILTON M. BROEKER,C.P.A. OFFICES
LAURENCE J.HENDRICKSON, C.P.A. 1962 MINNEAPOLIS, MINNESOTA
A.F. EICHHORN. C.P.A. October 1, ST. PAUL, MINNESOTA
JOHN J.O'CONNELL,JR"C.P.A. FARGO, NORTH DAKOTA
WARREN BOLMGREN, C.P,A, ROCHESTER, MINNESOTA
HAROLD G.HAGLUNO,C.P.A. SIOUX FALLS, so. 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. <<::(.