City of Roseburg,
Oregon
URBAN RENEWAL AGENCY
Comprehensive annual financial report
Fiscal Year Ended June 30, 2009
URBAN RENEWAL AGENCY
OF THE CITY OF ROSEBURG, OREGON
COMPONENT UNIT
FINANCIAL STATEMENTS
AND SCHEDULES
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Prepared by the Finance Department
of the City of Roseburg
URBAN RENEWAL AGENCY
OF THE CITY OF ROSEBURG, OREGON
Component Unit Financial Statements and Schedules
For The Fiscal Year Ended June 30, 2009
Table of Contents
I.
INTRODUCTORY SECTION
List of Officials................................................................................................................................ 1
II. FINANCIAL SECTION
A. REPORT OF THE INDEPENDENT ACCOUNTANTS...................................................................... 2
B. MANAGEMENT DISCUSSION AND ANALYSIS..........................................................................…3-7
C. BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Assets......................................................................................................... 8
Statement of Activities........................................................................................................... 9
Fund Financial Statements
Major Governmental Funds:
Balance Sheet................................................................................................................... 10
Reconciliation of Governmental Funds Balance Sheet to Statement of Net Assets....................
11
Statement of Revenues, Expenditures, and Changes in Fund Balances....................................
Reconciliation of the Statement of Revenues, Expenditures and Changes
12
in Fund Balances to the Statement of Activities................................................................. 13
Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
General Fund............................................................................................................. 14
Notes to the Financial Statements.......................................................................................... 15-22
III. SUPPLEMENTARY INFORMATION SECTION
A. BUDGETARY COMPARISONS
Schedule of Revenues, Expenditures, and Changes In Fund BalancesBudget and Actual
Debt Service Fund............................................................................................................. 23
Capital Projects Fund..........................................................................................................24
B. Other Financial Schedules
Schedule of Property Tax Transactions and Outstanding Balances.................................................... 25
Schedule of Bond Principal and Bond Interest Transactions............................................................. 26-27
IV. AUDIT COMMENTS
Audit Comments and Disclosures Required By State Regulation ...................................................... 28
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INTRODUCTORY
SECTION
CITY OF ROSEBURG, OREGON
June 30, 2009
ELECTED OFFICIALS
Name
Position
Term Expires
Larry Rich
Mayor
December 31, 2010
Ken Averett
Councilor, Ward I
December 31, 2012
Verna Ward
Councilor, Ward I
December 31, 2010
Steve Tuchscherer
Councilor, Ward II
December 31, 2012
Tom Ryan
Councilor, Ward II
December 31, 2010
Rick Coen
Councilor, Ward III
December 31, 2012
Chris Spens
Councilor, Ward III
December 31, 2010
Mike Baker
Councilor, Ward IV
December 31, 2012
Steve Kaser
Councilor, Ward IV
December 31, 2012
APPOINTED OFFICIALS
Name
Position
P. Eric Swanson
City Manager
Brian R. Davis
Community Development Director
Nicole A. Messenger
Public Works Director
Jack L. Cooley
Fire Chief
Sheila R. Cox
City Recorder
Barbara F. Gershon
Human Resources Director
Cheryl K. Guyett
Finance Director
Kenneth W. Madison
Municipal Judge
Mark S. Nickel
Police Chief
1
FINANCIAL
SECTION
NEUNER, DAVIDSON & COOLEY, LLC
CERTlFlED PUBLIC ACCOUNTANTS
J. William Neuner, CPA.
Thomas J. Davidson, C.P.A.
Jeffrey R. Cooley, CPA.
2500 W Harvard Ave.
Roseburg, Oregon 97471-2507
http://www.ndkccpa.com
Traci I. Trotter, CPA.
Melissa Henderson, P.A.
P. O. Box 1786
Roseburg, Oregon 97470-0425
Phone (541) 672-4886
Fax (541) 673-3712
REPORT OF INDEPENDENT ACCOUNTANTS
Board of Directors
City of Roseburg Urban Renewal Agency
Roseburg, OR 97470
We have audited the accompanying financial statements of the governmental activities and each major
fund as of and for the year ended June 30, 2009, which collectively comprise the Agency's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the
Agency's management. Our responsibility is to express an opinion on these financial statements based
on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. 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, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the Roseburg Urban
Renewal Agency (a component unit of the City of Roseburg, Oregon) as of June 30, 2009, and the
respective changes in financial position, where applicable, thereof and the respective budgetary
comparison for the General Fund for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
The management's discussion and analysis on pages 3 through 7 is not a required part of the basic
financial statements but are supplementary information required by accounting principles generally
accepted in the United Sates of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Agency's basic financial statements. The budget comparison schedules area presented for
purposes of additional analysis and are not a reqUired part of the basic financial statements. The budget
comparison schedules have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
Neuner, Davidson & Cooley, LLC
Certified Public Accountants
By:
~
~O
Thornasoavlds;r; CPA
December 14, 2009
Member:
American Institute of Certified Public Accountants
Oregon Society of Certified Public Accountants
Private Companies Practice Section
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2009
The management of the Urban Renewal Agency of the City of Roseburg, Oregon (Agency)
presents this narrative overview and analysis to facilitate both a short and a long-term
analysis of the financial activities of the Agency for the fiscal year ended June 30, 2009. This
Management’s Discussion and Analysis (MD&A) is based on currently known facts, decisions,
and conditions that existed as of the date of the independent auditor’s report.
FINANCIAL HIGHLIGHTS
•
•
•
•
The Agency’s total liabilities exceeded its assets at June 30, 2009 by $4,454,240. The
deficit net assets is a combination of capital expenditures that are capitalized on the
primary government’s (City of Roseburg, Oregon) statement of net assets and bonded
debt that was issued to finance the Agency’s capital projects.
The Agency’s total net assets (assets less liabilities) decreased by $9,720 from the prior
year.
The Agency’s governmental funds reported a combined ending fund balance of
$1,887,763, a decrease of $1,201,456 from the prior year, which reflects
intergovernmental expenditures to the primary government for construction of the public
safety center which is scheduled to be completed in Fall of 2009.
The Agency did not issue any new debt in the current fiscal year. Regular debt service
payments were made as scheduled totaling $1,160,000.
OVERVIEW OF THE FINANCIAL STATEMENTS
This Management’s Discussion and Analysis is intended to serve as an introduction to the
Agency’s basic financial statements. The Agency’s basic financial statements consist of three
components: Government-wide financial statements, Fund financial statements, and Notes
to the basic financial statements.
This report also contains supplementary information in addition to the basic financial
statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the Agency’s finances, in a manner
similar to a private-sector business. These statements include:
Statement of Net Assets. The Statement of Net Assets presents information on all of the
assets and liabilities of the Agency at year-end. Net assets are what remain after the
liabilities have been recognized. Over time, increases or decreases in net assets may serve
as a useful indicator of whether the financial position of the Agency is improving or
deteriorating.
Statement of Activities. The Statement of Activities presents information showing how the
net assets of the Agency changed over the year by tracking revenues, expenditures and
other transactions that increase or reduce net assets. All changes in net assets are reported
as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes).
Fund financial statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or
objectives. The fund financial statements provide more detailed information about the
Agency’s funds, focusing on its most significant or “major” funds. The Urban Renewal
3
Agency of the City of Roseburg, Oregon, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements.
All of the funds of the Agency are governmental funds.
Governmental funds The governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental funds are used to
account for activities where the emphasis is placed on available financial resources, rather
than upon net income determination. Therefore, unlike the government-wide financial
statements, governmental fund financial statements focus on the acquisition and use of
current expendable resources, as well as on balances of expendable resources available at
the end of the fiscal year.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of
the government’s near-term financing decisions. Both the governmental fund balance sheet
and statement of revenues, expenditures and changes in fund balances are reconciled to the
government-wide Statements of net assets and activities.
The Agency maintains three individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement
of revenues, expenditures, and changes in fund balances for those funds that are
considered significant (major) to the Agency taken as a whole. These financial statements
report all three of the individual funds as major funds: General Fund, Debt Service Fund,
and the Capital Projects Fund.
The Agency adopts an annual appropriated budget for all governmental funds. To
demonstrate compliance with the budget, budgetary comparison statements have been
provided for each individual fund. Although the Debt Service Fund and the Capital Projects
Fund are not required supplementary information, staff has determined inclusion is relevant
to the overall presentation of the Agency’s financial statements.
Notes to the basic financial statements. The notes provide additional information that
is essential to a full understanding of the data provided in the government-wide and fund
financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As a goal of the
Renewal District,
30, 2009, there
investments, and
Agency to eliminate blight and improve economic viability of the Urban
properties have been acquired for redevelopment and resale. As of June
were no capital assets held for resale. The assets consist of cash,
receivables.
99% of the Agency’s liabilities are related to bonded debt. The bonds were issued to provide
financing and refinancing for authorized capital improvement redevelopment projects
consistent with accomplishing the objectives of the Agency.
4
Urban Renewal Agency of the City of Roseburg, Oregon
Net Assets
(In dollars)
Current and other assets
Total assets
Current liabilities
Long-term debt
Total liabilities
Net assets:
Restricted
Unrestricted
Total net assets
$
Governmental Activities
2009
2008
2,178,566
$ 3,367,059
2,178,566
3,367,059
Increase
(Decrease) from
Fiscal 2008
$
(1,188,493)
(1,188,493)
27,806
6,605,000
6,632,806
46,579
7,765,000
7,811,579
(18,773)
(1,160,000)
(1,178,773)
(4,454,240)
(4,444,520)
(9,720)
1,363,438
(5,817,678)
$ (4,454,240)
1,359,059
(5,803,579)
$ (4,444,520)
4,379
(14,099)
(9,720)
$
Governmental activities. The key elements of the change in the Agency’s net assets for
the year ended June 30, 2009 are as follows:
•
•
Investment earnings decreased by $220,774, considerably less than the prior year total
of $295,518 reflecting a transfer of $1,870,000 to the primary government to complete
the public safety center. Additionally, interest rates have steadily declined over the past
year in reaction to the economic downturn.
Capital expenditures decreased by $676,882. Projects included the acquisition of
property on Jackson Street and the West Avenue redevelopment plan.
5
Urban Renewal Agency of the City of Roseburg, Oregon
Change in Net Assets
(in dollars)
Governmental
Activities
2009
2008
Revenues
Program revenues:
Capital Contributions
Charges for services
Total Program revenues
$
General revenues:
Property taxes
Interest
Other
Total general revenues
Total revenues
Expenses
Public works
Capital outlay
Interest on long-term debt
Total expenses
Increase (decrease) in net assets
Net assets, July 1
Net assets, June 30
22,538
22,538
$
79,769
38,153
117,922
2,832,575
74,744
2,907,319
2,744,713
295,518
1,725
3,041,956
2,929,857
3,159,878
2,434,252
172,378
332,947
2,939,577
4,180,258
849,260
378,177
5,407,695
(9,720)
(2,247,817)
(4,444,520)
$ (4,454,240)
(2,196,703)
$ (4,444,520)
Financial Analysis of the Agency’s Funds
As noted earlier, the Agency uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds. The focus of the Agency’s governmental funds is to provide
information on relatively short-term cash flow and funding for future basic services. Such
information is useful in assessing the Agency’s financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of a fiscal year.
At June 30, 2009, the Agency’s governmental funds reported combined ending fund
balances of $1,887,763. $524,322 (28 per cent) of the ending fund balance constitutes
unreserved ending fund balance, which is available for spending at the government’s
discretion. Of this unreserved amount, $478,601 is available for capital projects. An
additional $1,363,438 is restricted for debt service obligations.
6
General Fund. The General Fund is the chief operating fund of the Agency. As of June 30,
2009, unreserved fund balance was $45,724, a decrease of $256,004 from the previous
year. Property tax revenues of $2,796,870 increased $66,732 over the prior year as a
result of an increase in property values.
Debt Service Fund. The Debt Service Fund had a total fund balance of $1,363,438, all of
which is reserved for the payment of debt. The increase in fund balance during the current
year was $4,379.
Capital Projects Fund. The Capital Projects Fund had a total fund balance of $478,601, a
decrease of $949,831. An intergovernmental transfer of $670,000 to the Facilities
Improvement Fund occurred during the current fiscal year to assist in the construction of
the public safety center.
General Fund Budgetary Highlights
Resources in 2008-2009 were $2,861,106, $48,894 less than budgeted. Changes were due
primarily to a reduction in interest earnings; a result of a declining interest rates and less
available funds for investment.
DEBT ADMINISTRATION
At the end of the current fiscal year, the Agency had total bonded debt outstanding of
$6,605,000. Current year repayment of bonds totaled $1,160,000. No new debt was issued
during the current year.
REQUESTS FOR INFORMATION
This financial report is designed to present the user (citizens, taxpayers, investors, and
creditors) with a general overview of the Agency’s finances and to demonstrate the
Agency’s accountability. Questions concerning any of the information provided in this report
or requests for additional information should be addressed to the Agency’s Finance Office at
900 SE Douglas, Roseburg, Oregon 97470.
7
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BASIC
FINANCIAL
STATEMENTS
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Statement of Net Assets
June 30, 2009
ASSETS
Cash and investments
Interest receivable
Receivables (net of allowances for uncollectibles)
Deferred charges
Total assets
$
LIABILITIES
Accounts payable
Interest payable
Noncurrent liabilities:
Due within one year
Bonds payable
Due in more than one year
Bonds payable
Total liabilities
1,877,751
1,802
283,143
15,870
2,178,566
4,069
23,737
1,345,000
5,260,000
6,632,806
NET ASSETS
Restricted for:
Debt service
Unrestricted
Total net assets
$
See notes to the basic financial statements.
8
1,363,438
(5,817,678)
(4,454,240)
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Statement of Activities
For the year ended June 30, 2009
Functions/Programs
Governmental activities:
Public works
Capital outlay
Interest on long-term debt
Total government
Charges
for
Services
Expenses
$
2,434,252
172,378
332,947
2,939,577
$
22,538
22,538
Program Revenues
Operating
Grants and
Contributions
$
-
Capital
Grants and
Contributions
$
-
Total
$
General revenues:
Taxes
Property taxes, levied for debt service
Interest and investment earnings
Other revenues
Total general revenues
2,832,575
74,744
2,907,319
Change in net assets
Net assets--beginning
Net assets--ending
See notes to the basic financial statements.
9
(2,411,714)
(172,378)
(332,947)
(2,917,039)
(9,720)
$
(4,444,520)
(4,454,240)
FUND FINANCIAL STATEMENTS
Major Governmental Funds
General Fund
Accounts for all resources traditionally associated with governments that are not
required to be accounted for in another Urban Renewal Agency Fund.
Debt Service Fund
Accounts for general obligation indebtedness of the Urban Renewal Agency.
Capital Projects Fund
Accounts for acquisition, construction and improvements within the urban
renewal district that are financed from issuance of debt and interest earnings.
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URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Governmental Funds
Balance Sheet
June 30, 2009
Debt
Service
General
ASSETS
Cash and investments
Interest receivable
Property taxes receivable
Total assets
$
$
LIABILITIES
Accounts payable
Accrued interest payable
Deferred revenue
Total liabilities
FUND BALANCES
Reserved for:
Debt service
Unreserved, reported in:
Special revenue funds
Capital projects funds
Total fund balances
Total liabilities and fund balances
$
8,369
1,339
283,143
292,851
$
1,387,175
1,387,175
Capital
Projects
$
$
Total
Governmental
482,207
463
482,670
$
$
1,877,751
1,802
283,143
2,162,696
247,127
247,127
23,737
23,737
4,069
4,069
4,069
23,737
247,127
274,933
-
1,363,438
-
1,363,438
45,724
45,724
1,363,438
478,601
478,601
45,724
478,601
1,887,763
292,851
$
See notes to the basic financial statements.
10
1,387,175
$
482,670
$
2,162,696
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Reconciliation of Governmental Funds
Balance Sheet to
Statement of Net Assets
June 30, 2009
Total Fund balances-Governmental Funds
$
1,887,763
Amounts reported for governmental activities in the Statement of
Net Assets are different because:
Other long-term assets are not available to pay for
current period expenditures and therefore are deferred in
the funds:
Property taxes earned but unavailable
247,127
Bond issuance costs are deferred and amortized over
the term of the bonds
15,870
Long-term liabilities are not due and payable in the
current period and therefore are not reported in the
funds.
Net assets of governmental activities
(6,605,000)
$
See notes to the basic financial statements.
11
(4,454,240)
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the year ended June 30, 2009
Debt
Service
General
REVENUES
Taxes
Charges for services
Investment revenue
Total revenues
$
EXPENDITURES
Current operating:
Public works
Debt service:
Principal
Interest
Intergovernmental
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balances--beginning
Fund balances--ending
2,796,870
64,236
2,861,106
$
-
$
Total
Governmental
22,538
10,508
33,046
$
2,796,870
22,538
74,744
2,894,152
419,784
-
140,499
560,283
1,200,000
1,619,784
1,160,000
332,947
1,492,947
670,000
172,378
982,877
1,160,000
332,947
1,870,000
172,378
4,095,608
1,241,322
(1,492,947)
(949,831)
(1,201,456)
(1,497,326)
(1,497,326)
1,497,326
1,497,326
(256,004)
4,379
301,728
$
Capital
Projects
45,724
See notes to the basic financial statements.
12
(949,831)
1,359,059
$
1,363,438
1,497,326
(1,497,326)
(1,201,456)
1,428,432
$
478,601
3,089,219
$
1,887,763
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds to the
Statement of Activities
For the year ended June 30, 2009
Net change in fund balances--total governmental funds
$
(1,201,456)
Amounts reported for governmental activities in the Statement of
Activities are different because:
Revenues in the Statement of Activities that do not
provide current financial resources are not reported
as revenues in the funds.
Property taxes
35,705
The issuance of long-term debt is a resource and the repayment of
bond principal is an expenditure in governmental funds, but those transactions
increase or reduce long-term liabilities in the statement of net assets.
Also, governmental funds expense issuance costs when debt is first issued,
whereas these amounts are deferred and amortized in the statement
of activities.
Debt retired
Deferred Bond issuance costs
Change in Net Assets of Governmental Activities
1,160,000
(3,969)
$
See notes to the basic financial statements.
13
(9,720)
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Urban Renewal General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the year ended June 30, 2009
Actual
Amounts
Budgetary
Basis
Budgeted Amounts
Original
Final
REVENUES
Taxes
Investment revenue
Total revenues
$
EXPENDITURES
Materials and services
Intergovernmental
Contingency
Total expenditures
Excess of revenues
over expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances--beginning
Fund balances--ending
$
2,865,000
45,000
2,910,000
$
2,865,000
45,000
2,910,000
$
2,796,870
64,236
2,861,106
Variance With
Final Budget
Positive
(Negative)
$
(68,130)
19,236
(48,894)
421,000
61,304
482,304
421,000
61,304
482,304
419,784
1,200,000
1,619,784
1,216
(1,200,000)
61,304
(1,137,480)
2,427,696
2,427,696
1,241,322
(1,186,374)
(2,698,000)
(2,698,000)
(2,698,000)
(2,698,000)
(1,497,326)
(1,497,326)
1,200,674
1,200,674
(270,304)
(270,304)
(256,004)
14,300
270,304
270,304
301,728
31,424
-
See notes to the basic financial statements.
14
$
-
$
45,724
$
45,724
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NOTES TO
BASIC FINANCIAL STATEMENTS
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Notes to Basic Financial Statements
June 30, 2009
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Urban Renewal Agency of the City of Roseburg have been prepared
in accordance with Generally Accepted Accounting Principles (GAAP). GAAP statements include all
relevant Governmental Accounting Standards Board (GASB) pronouncements.
The financial
statements have incorporated all applicable GASB pronouncements as well as Financial Accounting
Standards Board (FASB) Statements and Interpretations, Accounting Principles Board Opinions and
Accounting Research Bulletins of the Committee on accounting procedures issued on or before
November 30, 1989, unless those pronouncements conflict with or contradict GASB
pronouncements.
REPORTING ENTITY
The Urban Renewal Agency of the City of Roseburg, Oregon was established on August 30, 1989. It
is a blended component unit of the City of Roseburg, Oregon. The Agency may remain in effect for a
period not more than twenty-five years from its effective date of adoption.
The Agency is a legally separate entity, which is governed by a board comprised of the members of
the City Council as stipulated by the Agency's bylaws. The City Manager is the Agency Director. The
City Council has the ability to impose its will on the Agency as determined on the basis of budget
adoption, taxing authority, and funding for the Agency. The Agency’s general and capital project
funds are reported as major governmental funds and the debt service fund as a nonmajor debt
service fund within the City’s financial statements.
BASIC FINANCIAL STATEMENTS
Basic financial statements are presented at both the government-wide and fund financial level. The
Agency’s activities are governmental and are normally supported by taxes and intergovernmental
revenues.
Government-wide financial statements display information about the reporting government as a
whole. The effect of interfund activity has been removed from these statements. These statements
focus on the sustainability of the Agency as an entity and the change in aggregate financial position
resulting from the activities of the fiscal period. These aggregated statements consist of the
Statement of Net Assets and the Statement of Activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services or privileges provided by a given function
or segment, and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
Fund financial statements display information at the individual fund level. Each fund is considered to
be a separate accounting entity. The Agency has only governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements.
Basis of Presentation
The financial transactions of the Agency are recorded in individual funds. Each fund is accounted for
by providing a separate set of self-balancing accounts that comprises its assets, liabilities, reserves,
fund equity, revenues and expenditures/expenses. The various funds are reported by generic
classification within the financial statements.
The GASB 34 model sets forth minimum criteria (percentage of the assets liabilities, revenues or
expenditures/expenses of either fund category or the governmental and enterprise combined) for the
15
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Notes to Basic Financial Statements
June 30, 2009
determination of major funds. The Agency has elected to report all three funds as major funds in
order to assist in compiling a complete and accurate picture of the financial position of the Agency.
The Agency reports the following major governmental funds:
•
General Fund
Accounts for all resources traditionally associated with the urban renewal district that are not required to
be accounted for in another fund.
•
Debt Service Fund
Account for the accumulation of resources for, and the payment of, indebtedness of the Urban Renewal
Agency.
•
Capital Projects Fund
Accounts for acquisition, construction and improvements within the urban renewal district that are
financed from the issuance of debt and interest earnings.
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the
measurement focus.
The Government-wide Financial Statements are presented on a full accrual basis of accounting with
an economic resource measurement focus. An economic resource focus concentrates on entity or
fund’s net assets. All transactions and events that affect the total economic resources (net assets)
during the period are reported. An economic resource measurement focus is directly connected with
full accrual accounting. Under the full accrual basis of accounting, revenues are recorded when
earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of
related cash flows take place.
Governmental Funds Financial Statements are presented on a modified accrual basis of accounting
with a current financial resource measurement focus. This measurement focus concentrates on the
fund’s resources available for spending currently or in the near future. Only transactions and events
affecting the fund’s current financial resources during the period are reported. Similar to the
connection between an economic resource measurement focus and full accrual accounting, a current
financial resource measurement focus is inseparable from a modified accrual basis of accounting.
Under modified accrual accounting, revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
Agency considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. The primary revenues susceptible to accrual in this manner are property taxes
and intergovernmental revenues received within the 60-day period following the end of the fiscal
year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
A deferred revenue liability arises in the Governmental Funds Balance Sheet when potential revenue
does not meet both the measurable and available criteria for recognition in the current period. This
unavailable deferred revenue consists primarily of uncollected property taxes and outstanding loans
receivable not deemed available to finance operation of the current period. In the government-wide
Statement of Activities, with a full accrual basis of accounting, revenue must be recognized as soon
as it is earned regardless of its availability. Thus, the liability created on the Governmental Fund
Balance Sheet for unavailable deferred revenue is eliminated. Note that deferred revenues also arise
outside the scope of measurement focus and basis of accounting, such as when the Agency receives
resources before it has a legal claim to them. For instance, when grant monies are received prior to
the incurrence of qualifying expenditures.
16
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Notes to Basic Financial Statements
June 30, 2009
Similar to the way revenues are recorded, governmental funds only record those expenditures that
affect current financial resources. Principal and interest on general long-term debt are recorded as
fund liabilities only when due, or when amounts have been accumulated in the debt service funds for
payments to be made early in the following year. In the government-wide financial statements,
however, with a full accrual basis of accounting, all expenditures affecting the economic resource
status of the government must be recognized. Thus, the expense and related accrued liability for
long-term portions of debt must be included.
Since the governmental fund statements are presented on a different measurement focus and basis
of accounting than the government-wide statements’ governmental column, a reconciliation is
necessary to explain the adjustments needed to transform the fund based financial statements into
the governmental column of the government-wide presentation. This reconciliation is part of the
financial statements.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
ASSETS, LIABILITIES, AND EQUITY
Cash and Investments
Cash and cash equivalents include cash on hand, demand deposits, short-term investments with
original or remaining maturities of three months or less when purchased, and cash and investments
in the City of Roseburg’s (primary government) investment pool. Investments, including equity in
pooled cash and investments, are stated at fair value.
Restricted Assets
Assets whose use is restricted for construction, debt service or by other agreement are segregated
on the Government-wide Statement of Net Assets.
Receivables and Payables
Activity between funds that represent lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either “due to/from other funds” (i.e. the current portion of interfund
loans) or “advances to/from other funds” (i.e. the non-current portion of interfund loans). All other
outstanding balances between funds are reported as “due to/from other funds”.
Recorded property taxes receivable that are collected within 60 days after year-end are considered
measurable and available and, therefore, are recognized as revenue. The remaining balance is
recorded as deferred revenue because it is not deemed available to finance operations of the current
period. An allowance for doubtful accounts is not deemed necessary, as uncollectible taxes become
a lien on the property. Property taxes are levied and become a lien on July 1. Collection dates are
November 15, February 15, and May 15 following the lien date. Discounts are allowed if the amount
due is received by November 15 or February 15. Taxes unpaid and outstanding on May 16 are
considered delinquent.
Receivables in governmental funds are stated net of any allowance for uncollectibles.
Capital Assets
All capital assets which include property and infrastructure assets (e.g. roads, bridges, sidewalks,
etc.) become City of Roseburg (primary government) capital assets and therefore are not reported
on the Agency’s Statement of Net Assets. The Agency’s negative net assets is a result of this
reporting.
17
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Notes to Basic Financial Statements
June 30, 2009
Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the Statement of Net Assets. Bond premiums and discounts are deferred
and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond
premium or discount. Bond issuance costs are treated as period costs in the year of issue and are
shown as other financing uses.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is
reported as other financing sources while discounts on debt issuances are reported as other
financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Fund Equity
Tentative plans for utilization of fund balances in future periods are recorded as designations of fund
balance in the fund-level financial statements. Planned expenditures include future capital projects,
debt service, equipment reserves and other commitments for which fund balances have not been
appropriated or specifically segregated.
Use of Estimates
In preparing the Agency’s financial statements, management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.
2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
BUDGETARY INFORMATION
Annual budgets for all funds are adopted on a basis consistent with Oregon Revised Statutes (ORS
294 – Local Budget Law). The Agency is required to budget all funds. The budget is prepared for
each fund on the modified accrual basis of accounting. For all fund types, inter-fund loans are
budgeted as sources and uses in accordance with state budget laws. Estimated receipts and
expenditures are budgeted for by fund and object. Information on the past two years’ actual receipts
and expenditures and current-year estimates are included in the budget document. The process
under which the budget is adopted is described in the following paragraphs.
In early spring a preliminary budget calendar, budget preparation manual and budget worksheets
are distributed to appropriate department directors. The City Manager (Agency Director) and the
Finance Director develop a proposed budget, after which the Agency Director publishes two notices
of Budget Committee meetings. No less than five days, or more than thirty days after the notices
are published, the Budget Committee (consisting of the Agency Board and an equal number of
citizens of the City of Roseburg) meets to consider the proposed budget. The Budget Message is
delivered, explaining the proposed budget and any significant changes in the Agency’s financial
position.
The Budget Committee conducts public meetings for the purpose of obtaining citizens’ comments,
deliberates on, and subsequently approves the proposed budget, which includes any additions or
deletions from the one presented by the Agency Director originally. The Budget Committee then
submits the approved budget to the Agency Board for final adoption. The approved expenditures for
each fund may not be increased by more than 10% by the board without returning to the Budget
Committee for a second approval. After the board adopts the budget and certifies the total of ad
valorem taxes to be levied, as approved by the budget committee, no additional tax levy may be
made for that fiscal year.
18
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Notes to Basic Financial Statements
June 30, 2009
The Agency Board legally adopts the budget by resolution before July 1. The resolution establishes
appropriations for each fund and expenditures cannot legally exceed these appropriations. The level
of control established by the resolution for each fund is the object group level (i.e. personal services,
materials and services, capital outlay, and other expenditures). Appropriations lapse as of the yearend.
The Agency Board may change the budget throughout the year by resolution and by adopting
supplemental budgets as authorized by Oregon Revised Statutes. Unexpected additional resources
may be added to the budget through the use of a supplemental budget. A supplemental budget
requires hearings before the public, publications in newspapers and approval by the board.
Expenditure appropriations may not be legally over-expended except in the case of grant receipts
that could not be reasonably estimated at the time the budget was adopted, and for debt service on
new debt issued during the budget year.
Deficit Fund Equity
The Agency has no instances whereby any of its individual major governmental funds had a deficit in
fund equity as of June 30, 2009.
3. DETAILED NOTES ON ALL FUNDS
POOLED DEPOSITS AND INVESTMENTS
The Agency maintains a cash management pool for its cash and cash equivalents in which each fund
participates. Interest earnings on pooled funds are distributed monthly based on average daily
balances.
Cash and investments at June 30, 2009 are comprised of the
following:
Deposits with financial institutions
$
Investments
557,477
1,320,274
$
1,877,751
DEPOSITS
Deposits with financial institutions are comprised of bank demand deposits and certificates of deposit. The total bank balance per the bank statements is $521,440. Of these deposits, $383,813
was covered by federal depository insurance. The balance of $137,627 is collateralized per the
Oregon Public Funds Collateralization Program (PFCP) per Oregon Revised Statutes, Chapter 295
which requires public funds in excess of insurance limits to be held at qualified depositories. The City
is in full compliance with ORS Chapter 295.
Credit Risk
Custodial credit risk, for deposits, is the risk that in the event of a bank failure, the Agency’s
deposits may not be returned to it. As required by Oregon Revised Statutes, Chapter 295, deposits
in excess of FDIC coverage are held at qualified depositories for public funds. All qualified
depositories for public funds are included in the multiple financial institution collateral pool that is
maintained by and in the name of the Office of the State Treasurer. As a result, the Agency has no
exposure to custodial credit risk for deposits with financial institutions.
State statues authorize the Agency to invest in general obligations of the US Government and its
agencies, certain bonded obligations of Oregon municipalities, bank repurchase agreements,
19
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Notes to Basic Financial Statements
June 30, 2009
bankers’ acceptances, certain commercial papers and the State Treasurer’s investment pool, among
others. The Agency’s investment policy does not further restrict its investment choices.
The State of Oregon Local Government Pool (Pool) is not registered with the U.S. Securities and
Exchange Commission as an investment company. Oregon Revised Statutes and the Oregon
Investment Council govern the Pool’s investment policies. The State Treasurer is the investment
officer for the Pool and is responsible for all funds in the Pool. These funds must be invested and
managed, as a prudent investor would, exercising reasonable care, skill and caution. Investments in
the fund are further governed by portfolio guidelines issued by the Oregon Short-Term Funds Board,
which establish diversification percentages and specify the types and maturities of investments. The
Oregon Audits Division of the Secretary of State’s Office audits the Pool annually. The Division’s
report on the Pool as of and for the year ended June 30, 2009 was unqualified.
The LGIP’s portfolio concentration of credit risk at June 30, 2009 included: Bank Notes .9%,
Commercial Paper, 16.6%, Corporate Notes, 26.8%, Certificates of Deposit, 1.0%, US agency
securities, 43.7%, and Temporary Liquidity Guarantee 11.0%. The credit risk associated with the
investments was: AAA rating, 55.5%, AA rating, 26.1%, A rating, 16.4%, BBB rating, .7%, and not
rated, 1.3%. The fair value of the Agency’s investment in this pool is reported in the accompanying
financial statements at amounts based upon the Agency’s pro-rata share of the fair value for the
LGIP entire portfolio.
Concentration of Credit Risk
The Agency has concentrations in the following investments: Local Government Pool, and US agency
securities. These investments are 58.1% and 41.9% of the City’s total investments respectively.
As of June 30, 2009, the Agency had the following investments.
INVESTMENT TYPE
Local Government Investment Pool
Credit
Risk
See Above
US Agency Securities
Maturities
% of
Portfolio
Avg 6-18 months
58.1%
Within 18 months
41.9%
Actual
Amount
$
767,079
Federal Home Loan Bank
AAA
315,875
Federal Home Loan Mortgage Co.
AAA
80,213
Federal National Mortgage Assoc.
AAA
157,107
Subtotal for Portfolio Percentages
1,320,274
Cash on Hand, Checking
557,477
Total Cash and Investments, June 30, 2009
$1,877,751
Interest Rate Risk
The City of Roseburg’s (the primary government) investment policy states that investment
maturities for operating funds shall be scheduled to coincide with projected cash flow needs and
timed to comply with the following short-term investment guidelines. All funds will be considered
short-term and limited to maturities not exceeding 18 months, except those reserved for capital
projects which will be limited to maturities not exceeding 3 years.
20
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Notes to Basic Financial Statements
June 30, 2009
Receivables
Receivables as of year-end for the Agency’s individual, major governmental funds in the aggregate,
net of applicable allowances for uncollectible accounts, are as follows:
Debt
Service
General
Capital
Projects
Total
Governmental
Receivables:
Interest
$
Taxes
Total
1,339
$
-
283,143
$
284,482
$
463
$
-
$
1,802
$
463
283,143
$
284,945
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also
defer revenue recognition in connection with resources that have been received, but not yet earned.
At the end of the current fiscal year, the General fund’s deferred revenue of $247,127 was from
delinquent property taxes receivable.
LONG-TERM OBLIGATIONS
The table below presents current year changes in long-term obligations, and the current portions due
for each obligation.
Beginning
Balance
Tax Increment Bonds
Series 2001
Series 2002
Series 2006
Total Governmental Activities
$
$
1,100,000
1,345,000
5,320,000
7,765,000
Additions
Reductions
$
$
$
-
550,000
315,000
295,000
$ 1,160,000
Ending
Balance
$
$
550,000
1,030,000
5,025,000
6,605,000
Due Within
One Year
$
550,000
325,000
470,000
$ 1,345,000
Tax Increment Bonds
In March 2001, Urban Renewal Tax Increment Bonds in the amount of $4,950,000 were issued to
finance Urban Renewal infrastructure projects. These bonds have a ten-year term and carry interest
rates that range from 3.85% to 4.85%, and have a final maturity in June of 2010. As of June 30,
2009 the bonds have an outstanding principal balance of $550,000.
In January 2002, the City, through its Urban Renewal Agency, issued $3,000,000 in bonds to finance
infrastructure projects and land acquisition. The bonds carry interest rates of 2.35% to 4.90% over
the ten-year term, and have a final maturity in June of 2012. The principal balance outstanding on
these bonds as of June 30, 2009 is $1,030,000.
In October 2006, the City issued $5,725,000 in bonds through its Urban Renewal Agency to finance
Urban Renewal infrastructure projects and to assist with completion of the public safety facility
project. The interest rate on the bonds is 4.15% and the final maturity will be in June 2013. The
principal balance outstanding on these bonds as of June 30, 2009 is $5,025,000.
21
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Notes to Basic Financial Statements
June 30, 2009
Urban renewal bond debt service requirements to maturity are as follows:
Year Ending
June 30,
Principal
Interest
2010
1,345,000
284,850
2011
1,540,000
223,233
2012
1,750,000
157,080
2013
Totals
1,970,000
$
6,605,000
81,755
$
746,918
4. OTHER INFORMATION
RISK MANAGEMENT
The Agency is exposed to various risks of loss related to torts; theft of, damage to, and destruction
of assets; errors and omissions; and natural disasters for which the City of Roseburg (the primary
government) carries commercial insurance. Settled claims relating to these exposures have not
exceeded insurance coverage’s in any of the past three years.
COMMITMENTS AND CONTINGENT LIABILITIES
The Agency has commitments under various contracts entered into during the normal course of its
operations that were not material.
The Agency is contingently liable with respect to lawsuits and other claims incidental to the ordinary
course of its operations. Management intends to vigorously contest these matters and does not
believe their ultimate resolution will have a material effect upon the Agency’s financial position or
results of operations.
22
SUPPLEMENTARY INFORMATION
SECTION
BUDGETARY COMPARISON SCHEDULES
Pursuant to the provisions of Oregon Revised Statute 297.465,
Oregon Administrative Rule #162-010-0130, Minimum Standards for
Audits of Oregon Municipal Corporations , requires an individual
schedule of revenues, expenditures/expenses, and changes in fund
In accordance with GASB Statement #34 the Agency's General Fund
is presented in the basic financial statements. All other fund
budgetary comparisons are displayed in the following
SCHEDULE OF REVENUES,
EXPENDITURES/EXPENSES
AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
Governmental Funds
‹
Debt Service Fund
‹
Capital Projects Fund
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Urban Renewal Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the year ended June 30, 2009
Budgeted Amounts
Original
Final
EXPENDITURES
Debt service:
Principal
Interest
Total expenditures
$
OTHER FINANCING SOURCES
Transfers in
Reserved for future expenditures
Total other financing sources
Net change in fund balances
Fund balances--beginning
Fund balances--ending
1,160,000
338,000
1,498,000
$
Actual
Amounts
1,160,000
338,000
1,498,000
$
1,160,000
332,947
1,492,947
Variance With
Final Budget
Positive
(Negative)
$
5,053
5,053
1,498,000
(1,355,351)
142,649
1,498,000
(1,355,351)
142,649
1,497,326
1,497,326
(1,355,351)
(1,355,351)
4,379
1,359,730
1,355,351
1,355,351
1,359,059
3,708
$
-
23
$
-
$
1,363,438
(674)
1,355,351
1,354,677
$
1,363,438
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Urban Renewal Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the year ended June 30, 2009
Actual
Amounts
Budgetary
Basis
Budgeted Amounts
Original
Final
REVENUES
Charges for services
Investment revenue
Total revenues
$
EXPENDITURES
Materials and services
Capital outlay
Intergovernmental
Contingency
Total expenditures
Deficiency of revenues
under expenditures
OTHER FINANCING SOURCES
Proceeds from asset sales-land
Total other financing sources
$
$
22,538
10,508
33,046
$
4,538
508
5,046
185,000
1,145,000
670,000
86,243
2,086,243
140,499
172,378
670,000
982,877
44,501
972,622
86,243
1,103,366
(2,058,243)
(2,058,243)
(949,831)
1,108,412
700,000
700,000
(1,358,243)
$
18,000
10,000
28,000
185,000
1,145,000
670,000
86,243
2,086,243
700,000
700,000
Net change in fund balances
Fund balances--beginning
Fund balances--ending
18,000
10,000
28,000
Variance With
Final Budget
Positive
(Negative)
1,358,243
-
-
(1,358,243)
$
24
1,358,243
-
(700,000)
(700,000)
(949,831)
$
1,428,432
478,601
408,412
$
70,189
478,601
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OTHER
FINANCIAL SCHEDULES
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Schedule of Property Tax Transactions and Outstanding Balances
For the year ended June 30, 2009
Tax
Year
Property Taxes
Receivable
June 30, 2008
2008-09
$
-
Levy as
Extended by
Assessor
$
2,901,666
Discounts
And
Adjustments
$
Cash
Collections
Property Taxes
Receivable
June 30, 2009
(50,938)
$ 2,688,962
$
161,766
2007-08
144,897
(22,706)
57,829
64,362
2006-07
54,071
(2,203)
19,152
32,716
2005-06
31,550
6,923
21,271
17,202
2004-05
14,787
(4,782)
7,839
2,166
2003-04
2,355
73
857
1,571
2002-03
1,305
22
445
882
2001-02
1,066
1,676
264
2,478
2000-01
1,742
(1,664)
78
-
173
-
1999-00 & prior
34
$
251,807
139
$
2,901,666
$
Total taxes as reported in Governmental Funds
Statement of Revenues, Expenditures, and
Changes in Fund Balances
(73,460)
$ 2,796,870
$ 2,796,870
25
$
283,143
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Schedule of Bond Principal and Bond Interest Transactions
For the year ended June 30, 2009
Bond Principal Transactions
Original
Outstanding
Issue
June 30, 2008
Issued
Tax Increment Bonds:
Issued March 22, 2001,
interest at 3.85% to 4.85%
4,950,000
1,100,000
-
Issued January 24, 2002,
interest at 2.35% to 4.90%
3,000,000
1,345,000
-
5,725,000
13,675,000
5,320,000
7,765,000
-
Issued October 3, 2006
interest at 4.15%
$
26
$
$
Bond Principal Transactions
Outstanding
Matured
Paid
June 30, 2009
$
Interest Transactions
Matured
Paid
550,000
550,000
550,000
52,800
52,800
315,000
315,000
1,030,000
63,813
63,813
295,000
1,160,000
295,000
1,160,000
5,025,000
6,605,000
220,780
337,393
220,780
$ 337,393
$
$
27
$
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AUDIT COMMENTS
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG, OREGON
Audit Comments and Disclosures Required by State Regulation
June 30, 2009
ACCOUNTING RECORDS AND INTERNAL CONTROL
The Agency's accounting records were reasonably maintained and adequate to support our audit of the
basic financial statements.
In planning and performing our audit, we considered the Agency’s internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Agency’s internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect misstatements
on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that
adversely affects the Agency’s ability to initiate, authorize, record, process, or report financial data reliably
in accordance with accounting principles generally accepted in the United States of America such that
there is more than a remote likelihood that a misstatement of the Agency’s financial statements that is
more than inconsequential will not be prevented or detected by the Agency’s internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that a material misstatement of the financial statements will not be prevented
or detected by the Agency’s internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over financial reporting that we consider to be material weaknesses, as defined above.
COLLATERAL
The Agency has complied with Oregon Revised Statutes Chapter 295 in relation to deposit accounts.
INDEBTEDNESS
The general obligation bonded debt of the Agency is in compliance with the limitation imposed by ORS. We
noted no defaults in principal, interest, sinking fund, of redemption provisions with respect to any of the
Agency’s bonded debt, and no breach of the bond agreements at June 30, 2009.
BUDGET
The Agency appears to have complied in all material respects with Local Budget Law (ORS 294.305 to
294.520) in the preparation, adoption and execution of its budget and tax levy for the year ended June 30,
of the current year, and the preparation and adoption of its budget for the year ending June 30 of the
subsequent year.
28
URBAN RENEWAL AGENCY OF THE CITY OF ROSEBURG
AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATION
June 30, 2009
INSURANCE AND FIDELITY BONDS
We have reviewed the Agency’s legally required insurance and fidelity bond coverage at June 30, 2009.
We ascertained that such policies appeared to be in force and in compliance with legal requirements
relating to insurance and fidelity bond coverage.
PUBLIC CONTRACTING
The Agency’s procedures for awarding public contracts were reviewed and found to be in accordance with
ORS 279.
29