1964 Liquor Dispensary
To the Village Council
Village of New Hope
Hennepin County, Minnesota
We have examined the balance sheet of the VILLAGE OF NEW
HOPE LIQUOR DISPENSARY FUND and the VILLAGE OF NEW HOPE LIQUOR STOR~
FUND as of December 3l~ 1964J and the related statements of income and
retained earnings for the year then ended. Our examination was made
in accordance with generally accepted auditing standards, and accord=
ing1y included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
In our opinion, the accompanying balance sheet and state=
ments of i.ncome and retained earnings present fairly the financial
position of the Village of New Hope Liquor Dispensary Fund and the
Village of New Hope Liquor Store Fund at December 31, 1964, 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.
-2-
The examination was conducted jointly by the firm of
Broeker & Hendrickson, Certified Public Accountants) and Department
of Public Examiner, State of Minnesota, in accordance with the request
of the Village Council.
Minneapolis, Minnesota
April 5) 1965 fiJ o/)/~
BROEKER & HENDRICKSON
Certified Public Accountants
/~U!I-~
ROBERT A. WHITAKER
Public Examiner
I
I
,VILLAGE OF NEW HOPE
I LIQUOR DISPENSARY FUND
AND
VILLAGE LIQUOR STORE FlmD
COMBINED B~LANCE SHEET - DECEMBER 31, 1964
I A S S E T S
Liquor Village
Dispensary Liquor
I CURRENT ASSETS: Fund Store]'und Total
Cash on hand $ 2,172.82 $ ~ $ 2,172.82
Cash in bank 23,026.72 1,966.83 24,993.55
Inventory, at cost 15,609.67 21,290.72 36,900.39
Due from other funds - 176.38 176.38
Prepaid expenses = 250.00 250.00
I Total current assets _$ 40, 809 .21 $ 23,683.93 j 64,493.14
I
RESTRICTED CASH AND INVESTMENTS
(Note 1) _$ 37,075.92 $ - $ 37,075.92.
FIXED ASSETS, at cost: $ 12,016.64 $ $ 12,016.64
Land -
I Building 57,556.53 57.> 556 .53
I -
I Furniture and fixtures 20,525.85 9,631.13 30,156.98
Leasehold improvements - 835.00 835.00
$ 90,099.02 $ 10,466.13 $100,565.15
Less- Accumulated depreciation 16,684.21 2,368.29 19,052,50
.$ 73,414.81 $ 8,097.84 $ 81,512.65
$151,299.94 $ 31,781.77 $183,081.71
L I A B I LIT I E S
CVRRENT LIABILITIES: $ $ $
Current maturity of bonds payable 5,000.00 - 5,000.00
Accounts payable 245.50 740.90 986.40
Due to other funds 11,565.13 33,511.59 45,076.72
Accrued Public Employees Retire-
ment Association contributions 2,867.10 612.00 3,479.10
Accrued interest on Municipal
Building Revenue Bonds payable 1,455.41 = 1,455.41
Total current liabilities j 21,133.14 $ 34,864.49 ~ 55,997.63
MUNICIPAL BUILDING REVENUE BONDS
PAYABLE, exclusive of current .$ 67,000.00
maturity included above (Note 2) $ 67,000.00 .$ -
RESERVE FOR RESTRICTED ASSETS j 29,150.00 .$ - $ 29,150.00
RETAINED EARNINGS (deficit)--per ..$ 34,016.80 $( 3,082.72) $ 30,934.08
accompanying statement
j151,299.94 $ 31,781.77 $183~81,71
The accompanying notes are an integral part
of this balance sheet.
VILLAGE OF NEW HOPE
LIQUOR DISPENSARY FUND
AND
-
VILLAGE LIQUOR STORE FUND
NOTES TO FINANCIAL STATEMENTS
1. Restricted assets consist of cash and investments appropriated
for the payment of bonds and interest as provided for in the
bond indenture.
2. The provision underlying the Municipal Building Revenue Bonds
payable provides, in part, the following:
a. Annual bond maturities vary from $5,000 to $10,000 for
each of the year.s 196-5 through 1973. Bonds maturing
in the years 19p5 and 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
layable at par plus accrued interest and a premium of
50 per $1,000 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 principal shall be payable from net
revenues, as defined, and the excess shall be allocated
to certain specific accounts. At December 31, 1964 the
Village had net revenues of $89,656.75 and had paid
principal and interest on such revenue bonds to
December 31, 1964 in the amount of $46,460.00, leaving
surplus net revenues of $43,196.75.
VILLAGE OF NEW HOPE
LIQUOR DISPENSARY FUND
AND
VILLAGE LIQUOR STORE FUND
STATEMENTS OF TNCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECE~ffiER 31, 1964
i INCOME
Liquor Village
Dispensary Liquor
SALES: Fund Store Fund Total
On sale $ 89.,642.20 $ = $ 89,642.20
Off sale 96..365.64 111,636.24 208,,001.88
Total sales $186,007.84 $111.9636.24 $297,644.08
COST OF SALES 110,,224.87 88,996.30 199,221.17
Gross profit on sales $ 759782.97 $ 22,639.94 $ 98..422.91
Per cent to sales 40.7% 20.3% 33.1%
OPERATING EXPENSES:
Sel1ing-
Salaries $ 25..527.45 $ 6,792.71 $ 32.9320.16
Public Employees Retirement
Association contribution 1..362.34 408.00 1,770.34
Supplies 1.9780.44 152.96 1,,933.40
Laundry 206.91 79.45 286.36
Licenses and taxes 71.00 54.00 125.00
Cash short 20.72 = 20.72
Total selling expenses $ 28,968.86 j 7..487.12 $ 36,455.98
Overhead=
Utilities $ 1.9 98.5.02 $ 1,,301.97 $ 3,286.99
Rent = 3,000.00 3,000.00
Maintenance and repairs 1,568.16 100.93 1,669.09
Cleaning 2,602.14 52.35 6 . lJ.
2, 54..9
Other contractual services 703.00 216.00 919.00
Supplies 31.97 96.01 127.98
Insurance 2..690.37 782.96 3..473.33
Taxes 333.70 = 333.70
Depreciation 2,898.79 827.63 3..726.42
Total overhead expenses j 12..813.15 $ 6..377.85 j 19,191.00
Administration and general= $ $ 11,250.65
Salaries $ 9,666.65 1,584.00
Public Employees Retirement
Association contribution 707.12 - 707.12
Legal and accounting 350.00 200.00 550.00
Office supplies 396.24 3.30 399.54
Other 26.67 80.00 106.67
Total administration and
general expenses $ 11,146,68 $ 1.. 867 ',30 ~$ 13,013.98
Total operating expenses ~$ 52,928069 $ 15,732.27 $ 68,660.96
Operating income $ 22,854.28 $ 6..907.67 $ 29,761,95
INTEREST EXPENSE (Net) 2.,775.16 = 2,775.16
I Net income for the year j 20,079012 $ 6,907.67 $ 26..986.79
I
=2=
RETAINED EARNINGS
BALANCE" DECEMBER 31, 1963 $ 28.9337.68 $( 9.9990.39) $ 18.9347.29
(deficit)
ADD- Net income for the year.9 63907.67 26.9986.79
per statement of income 20,079.12
$ 48.9416.80 $( 3,082.72) $ 45,334.08
DEDUCT- Transfer to reserve for
restricted assets 14,400.00 - 1401400.00
BALANCE, DECEMBER 31, 1964 ~ 34.9016.80 $( 3.9082.72) j 30,934.08
(deficit)
The accompanying notes are an integral part of these
statements of income and retained earnings.