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1957 liquor reportVILLAGE flF TSLAI+TD PARK, ~IRTN.~SOTA flN A~JI~ OFP' SALE LI~,t7flR FUND REPORT flF EXAMI~oATIflN YEAR ENDED I3ECEi~BER ~1 ~ 1957 ROBERT A. KRATT CERTIFIED PUBLIC ACCOUNTANT OFFICE IN SUBURBAN MINNEAPOLIS AT NAVARRE, MINNESOTA Februar~r ~, 1958 The Honorable Mayor and Village Cauneil Village of Island Park, Minnesota Gentlemen: ~Ve have examined the balance sheet of the On and Off Sale Liquor Fund of the Village of Tsland Park, Minnesota as of December 31, 1957 and the related statements of operations and surplus for the year than 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. Presented herewith is our report, consisting of the following described statements together with comments relating thereto and to the scope of the examination: EXHTBTT A - BALANCE SHEET AS AT DECEMBER 3l, 1957 EXHIBIT B - ANALYSIS OF ST7RPLUS, YEAR ENDED DECEMBER 3l, 1g57 EXHIBIT C - COMBINED STATEMENT OF OPERATIONS, YEAR ENDED DECEMBER 31, 1957 EXHIBIT D - BALANCE SHEET AS AT DECEMBER 31, 195?, MUNICIPAL BUILDING BOND FUND Ths amount on deposit at the State Bank of Mound as at December 31, 1957 ~5©,$25.98) in the On and Off Sale Liquor Fund account includes cash belonging to the Pdunicipal Building Bond Fund; _l_ this balance has been allocated herein an the basis of the amount applicable to each .fund. ANALYSIS OF ~~I~TA~CIAL POSITION Current Assetst Cash in bank and on hand 22,10.£35 Inventories 2 ,£30 0 Total current assets ~, z~•7~ Savings account, depreciation fund 3, 75•Q Savings account, reserve fund 13 ,27.97 Fixed assets, less depreciation b, 300.5' Prepaid insurance 179.21 Total 77,103.5b Currant Liabilities: Accounts payable, ~rithholdings and aacrumis ~ 9s3b6.97 Reserve Account, Municipal Building Revenue Bonds l s~'7•~7 Surplus 08. b2 Total ~~03 ANALYSIS OF OPL'RATIONS Presented in the following analysis is a condensed aompari- son of the combined operations of the On and Off Sale Liquor Fund for the years ended December 31, 195? and December 3l, 1956s Ss.le s Cost of sales c'aross profit Percentage of sales Selling, administrative and general expenses Percentage of sales Operating profit Other income Municipal bond issue deductions Payments for Village truck (for general fund) Not Income added to surplus Percentage of sales Increase 1,~~ 1 `b CDec_, sass ) ~156,a.53.6© w~157, b56.~.1 ~~~ (l, 502.81) l02 173.12 10 2~ . ( 112.b ) 53, 98©.,1~~3 50~, 37o.,bb 3~2 3~-• b~ 3l • 9w ~ • ?~ 32,~~©•,7b 33,b10.6o (689..8.) 21.1 21.3 (0.2;x) _ 21,059.72 16,7b©.o6 i~,299.66 976•x.3 x-39 •~~ ~37• ~~ (11,96..06) (12,x.62.8 ) 98.82 (1,6.2.80) (2,©53.50) 1~.1.0.'~,0 ~:9.29 ~~ ~,b82.73 `~' S,7l~6.5b -2- Tn the foregoing; schedule, the 1956 operations have been adjusted for X1.79.8? to place the n~uxzicipal building bond fund transactions on the sn.~^~e basis as in 1~5`; . The details of th.e ~~179.87 may be observed in Exhibit B. The amounts and ratios of ~rosa profit far thes years X957 and 195b are surnmar:ized bslows On sales Liquor and mix Beer Other off saa.e s Liqu©r Beer and mix oth®r Total 1957. 19.5.6 Amount Pct. Amount ~._.~. Pct. _..__r_. x;26, 691.20 54.2 4;',21, 746.68 49.4 7:1113.48 50.2,% f3,9'~2.00 55.3 1.~6 - 322..79 6.6~ 3~ Bc~~.l~. 51.6ja 31.0~1•~.7 47.6 1 ,©11.36 ~ 2 b 25.1; 4 8 1 ,413.59 08 24.8 1 ,g5 . 9 . 1 4, 5.45 4.3 209.69_ 6.4~ 234.15 7.0 24,1?7. ~4 22.21 ?.9, 329_.19 20.9i~ 5~i . 980. ~.8 .6 ~.a~:~.7~.© o The details of selling, adrn.inistrative and general expenses are set forth in Exhibit C; the allocation between the on and off sale operations has bean reviewed by us. In accordance with previous practice, discounts aggregating '?4,431.67 on purchases for the year 1957 have bean allocated entirely to the off-sale liquor operations. This amount of discounts compares with ~~;'3,~326.96 for the year 156. SC APE QE EXAj~IYdATIa~' As stated in the fir:~t ps.ra,~;raph of t~zis report, our examination was made in accordance with generally s.ccepted auditing standards, and accordingly included such testa of th€a s.caounting _3_ regards and such other auditing procedures as we considered necessary in the circumstances. Following are brief comments with respect to the application of certain of these tests and procedures. Tree bank balance as of December 31, 1957 was confirmed by certificate from the depository and reconciled by us to the balance shown by the records. The cash on hand was counted. The inventories at December 31, 1957 are stated in accord- ante with physical inventories taken by members of the Village council assisted by Liquor store employees at t?Ze aloes of the year and certified by the liquor store manager as to quantities, oondition and valuation. ~r~e were present on January 1, 195? and madm sizbstan- tial tests of the quantities. At a later tune we tested the prices, computations and the general basis of valuation. Computation of the prevision far depreciation of fixed assets was checked by us. Accounts payable were proved by trial balance and by examination of vendors statements and invoices. Accrued and prepaid items and reserves were computed or checked by us. ~G'e made such tests of the transactions relating, to sales, purc~.zases, payrolls and other items of income and expense as we deemed necessary in view of the system of internal check and control. .. ~.. CEF~TTFICATE In our opinions the accompanying balance-sheet and state menu of operations and s~.~.rplus present fairly the financial position of the an and Off SaIA Liquor fund of the Village of Island Parks Minnesota at December 31s 195? and the results of its operations for th.e year then ended, in conformity with generally accepted aceountin~, principles. ~'~~1-~`~ C . P. A. 5.. ~'ILLA.GE nF zsLAi. ON ,ANT) OFF' S~ BALANCE SITRET AS ASS S Current As se t~s "~"a~~i ~n"~&' and on hands T)emant9.. deposit, Stag Bank of found Less portion allocated to Municipal Building Band Fund. Portion allocated to On and ©ff Sale Liquor Fund Cash an hand Merchandise inventory,. at replacement market costs On Sale Qf f Sal® Total Current Assets Other Assts a~ngs"~'~1'ccount, Minnesota Federal Savings and Loan Asaoeiation (Equipment depreciation fund) Savings Aecount~ First Federal Sav~.nge and Loan ,A.ssoois~.tion 4Reserve Account, ~kunic~ipal Building Revenue Band l~su$) ~o, 825.98 3l_,b$2.34_ 3.~, J.~~ w bL~ 3,6.7.17. ~22,810.$~ 1,7.b8 °~~ 3~~- t `" ' 8.575.Qb Furniture anal Fixtures ..Furniture and. f i~ttures~, on sale 1~.s ~L,~#-. b2 Leas allowance for depra~ciation 9,37z•~3 Furniture and fixtures, off sale ~,9~-x•97 Less allo~rance for deprecsiation , 1,78..99 Pz-e~paid insurance Tom 1,~ ~ 127.97 2 ~,~ 80 ~. 9fl ~8,b2©.75 22,0©3.03 5:~-7.59 1.x.27.98. b, 300.57 179.23 7?.x.C3.5b w ~,_ VILLAGE OF ISLAND PARS, P~INN'ESO'I'A Oid AND OFF SALE LI+~UOR FUND ANALYSIS OF SURPL~TS YEAR ENDED DECEP~BER X11 1~~Z7 Balance, January 1, 1957 Deducts Trar~.sfer of &iunicipal $ui~.ding Fund Accounts to Separate Fund as of January 1, 1957: Payment of band principal in 1956 Leas: Depreciat3.on deducted in 1956 an assets in building find Balance, January 1, 1957: adjusted Add: Balance of 1957 net prai'it, added to Surplus, Exhibit C Balance, December 31, 195?, to Exhibit A EXHTBTT B ~-6: ~ 59.2© ~2, C300.00 1, X20.13 17,x.87 ~-5, $79.3 ~,~~~. ~9 C ~ 108.62 ~...~. 7.. I y ~ .+%~' ~ v~ VILLAGE JF ISZ,AND PARK, t~ill~~~~;SQTA ON .A,~'ll Gr E SALE LI~UQR FUND C4~~IBIN.E~} STATE~riENT OF t?PEI~ATI4NS :FEAR E1~DEL TIECEMBER 31, 1957 Sales Cost of Sales Tnvat~tory, January Purchases d 31: 195?~ Transfers to On Sale Inventory, Dec®mber 31, l9~? Cost of sales Gross profit on sales Selling, administrative and ~~®n®ral expenses: ~t8a~e s Bar supplies qff ice Supplies Uther supplies Electricity Telephone Insurance Laundry Fu.e 1 Repairs and maintenance Licenses Adv~s r ti s ing Legal and accounting Miscsllaneous Provision for depreciation Total Expenses Net operating profit Other income: I3ividend income, fro~a depreciation fund Rent Received from arage and filling station Less: Insursnc® and repairs Net profit, yea~~ ended December jl, ~.g5?, before deductions applicahle to Municipal F,orcd ss~a.e, cex~r:~ed f or~a~~d On Off S~ le 3 ~/ -.._ y ~ a ac .._. ~~`. 1,97Q•7~ 29,376.71 3~,0 2.°68 ~ 31.: bl~...1a.1 ~~~,z2s2gg•~1-z f9, lt~l, 968.22 %~s~~(29,376.71 ~~9~-,8go•g? •3s 2~ ~ ~ 6~ . 22 se ?Q, ~i2~3.71 ~ 33, 803.14 9 2Q, ~.?? • 3~- j' 17, 076.2 7,~.68.?~ ~~ 516.$ .. ~3 51.I~1 ~~ 5l . ~.2 i3S 2F?•g3 ~ ;lr 212.05 ~ " u~f3 ~ ~•~~ 8 .go jlr 1.}.c9f3. ~ ~~ 115. ~ ~,4 y~ ~ 7~1.~. fit ~ •~30 565. b .~ 7 380.6e ;,~~ 126. g1 7l~.6 . ©4 ~ 9 ~ . 2 5 ,~~ lzo. 77 13.0. ~7b ~~ ~ 5 205.7 ~~ ~ 205.7 5 ~ 66 1. 6 rvtir b7. 1 .~ ~-i~r'7 ~ CD 7~?~ l2©.l2 ~ a°~j g, I,JVO.~~~.. lA; Cam,) © ~~i~ ~ 4/ . ~ ~ V S zs!(~ 3r vS k (~') 949.38 227.28 ~ ~~~ v ..8_ .~ c... _. ~,,:~ 1. EXHIBIT C C om 7" , r 3r~s~ ~~15~,153. 60 21.x., 0.0 ~ -~°> 1x3,93 .9b M ~~ 127,g83.o2 ~~.2~~802•`~ z~, 53,g80.~.8 r~/~ or. 2~1-: ~~1-5.00 ~~. 6.8 b >c~ l©2.83 ~~~ 46g.g8 ~E 5 1,456.28 rx~ 202.35 ~,U 1,278.1$ ~? • 88 ~~~ 54?• 57 81..}2.28 ~~ l3.50 221.53 ys'G ~.(..l l ~ 54 S``u159.25 1, ?x.5.75 ta,~~? 3z,924.'j6 21,059.72 ~/~ ~j° 722.20 :~: 22,036.1 ~j ~~ ~.!~ .._-- _..__..~.--------. ~. ~ 1 Y. ~ VILLAG3~ ©F ISLAk~D PARK! MI~TI~ESOTA QN AND dFF SALE LI4~UOR COMBINED STATEMENT QF OPERATIONS YEAR ENDED DECEMBER 31, 1957 Net profit, year ended December 3l, 1957, before deduoti©ns applicable to Municipal Band Issue, brought forward Deductions arising from Municipal Band Issues Principal payment, municipal building revenue bonds Interest Expense on municipal building revenue bonda. Provision far Re.~erve Account Less Dividend. income from reserve account Deducts Interest income from Certificates of Indebtedneas I~et profit far year after deductions applicable to Municipal Bond Issue De duo t Faymen,ts for Village truck not in liquor fund Balance of 1957 net profit, added to Surplus, Exhibit B 2,000.00 EXHIBIT ~ X22,©36.15 5, 57~• 77 ~~ 5, 34a . ol,. l2, 574.81. b14..75 ~.1,~ 9 6i~;. © 6 10,072.©~ 1 ~ b1~.2.. 8~ 8,l~9.29 ~~.. VILLAGE bF "ISLAND ~A~K, ~~~I~3T3;~SflTA E;XHIBIT ~ DtIIT~TIC IPAL I3UILDI~TG HCSND FUNI? BALANCE SHEET AS AT 1~ECE15'LBER ~l.~e 1 57 Assets Viand deposit, ~tatQ Bank of ~~found, portion allocated from On and Off Sale Liquor Fund ~~ 31,682.30 Capital and: other expenditures Land. and buildings ~.6,000.C34 Unimproved leafs 1, 44.44 Pagrn~snts, pro~eCt aband©ned 4,73. 2 ~ Fixtures, of f~-sale liqucar 4 ~,1.~j.~. Equipment, an-sale Liquor 6,6F38.21 New roof, building 1,740.00 Excavating anal dirt removal for well 547.00 New we11 3,3.1.©.©© Architectst fees paid,. new building addition 1, 00.00 Other expenditures 55.3.7 b8,317.70 Total X100,000.40 Liabilities and Villa a Investment un c pa u ng avenue Bon ss Dated 5-1-55s Interest at ?~¢ o (plus 1~;~ fram 11-1-55 to 11-1-59 ) Ihza on fag lst of es.ch gear as follawsx 2,,000.40 1956 through 1959, ~`' 8, 000.04 19 60 through ~.~ b~ ...and 6 6 10,000.OC? 19 . through 19 9; bonds x~aturing after ~-1-60 redeemable then or an interest dates thereafter at ~.~ .premiums . Amount authorized and issued X100,000.00 Amounts redeemed 5-1-56 and 5-1w57 x.,40©.00 96,004.04 Village Investments Represented bg bonds redeemed up to IJeaamber 31, 195? ,.040.04 Total X140,040.40 ~-. _Ip_ d~,~~~ E.XHIBT~' A ELF LIQUQR_FUND __~.___ AT T~ECEIVIBER ~1: 192 L1Ak3TLITZES Current Liabilities ~ 3a$~~•~- Ac~ocat~nts payab e, trade Fmplo~ees~ se.lary deduatione 2$ .1CD Federal income taffies ~ith:held Public employees retirement ~rithhalding 1t~~,30 393.0 Reserve fc~r public employees retirement 2,21...13 tax Reserve fax' interest and prir_t~ipal si.nkin~ fund, municipal building rev®nue bonds3 11-1-57 to 1~-315? crued interest A c~2p Cad • , c Principal payment due in 195$ 2 UC)C).t~G 2,.92Q•t}t3. Total Current Liabilities 9:36.9? Reserro~e Account, Municipal Building 13a~7.9? Peven~.:a Bonds . Surplus, Exhibit B 54,30)$.62 ~~ 3~~~ G(h~ ~t;T~3°~~.:.5.~ '~otaZ