CONDENSED CLASSIFICATION OF MUNICIPAL WATER UTILITY ACCOUNTS
Under the authority granted to the Auditor of Public Accounts of the State of Illinois by the Municipal Auditing Law of 1953 amended, a typewritten pamplet was prepared bearing the title "Uniform System of Accounts for Municipal Water Utilities."
In compiling the pamphlet, the author kept in mind that such a production should be harmonized on the one hand with the Uniform System of Privately-owned Water Utilities in the State of Illinois, and on the other hand with the Uniform System of national groups such as the American Water Works Association and the American Association of Railway and Public Utility Commissioners.
After the typewritten pamphlet had been practically completed for final approval and formal printing for its intended use, it was learned that proposed changes or revised authorizations were about to be considered both by the State and National organizations concerned. At that point the Auditor of Public Accounts and the Municipal Audit Advisory Board of Illinois felt that good administration of the Municipal Auditing Law would decree that a uniform system of accounts for Municipal Water Utilities should not receive at that time a vote of final approval for printing or distribution.
Instead of authorizing the final adoption and printing of the Uniform System, the State Auditor and the Advisory Board thought it would be much better to provide for a temporary helpful and practical substitute therefor. The substitute takes the form of a complete list of appropriately numbered account titles arranged in an order representative of what is considered a very satisfactory condensed classification of accounts for small and medium sized municipally owned water utilities.
The difference between the typical classification of accounts for a municipal water utility and the condensed one shown here may be illustrated by two frequently used accounts. The first one is an asset account, the second an expense.
An asset account (Meters), as listed and described in a complete Uniform System for a Water Utility, is shown below:
I (a) "324. Meters.
"A. This account includes the cost installed of meters or devices and appurtenances thereto for use in measuring the quantity of water delivered to customers, whether actually in service or held in reserve.
"B. When a meter is permanently retired from service, the installed cost thereof is credited to this account.
"C. The records covering meters are so kept as to show separately for each type and size of meter the number of utility-owned meters installed on customers' premises (subdivided between active and inactive), the number of meters carried herein but not installed on customers' premises, including meters undergoing repairs, and the number of meters in service owned by customers.
"ITEMS
1. Cocks
2. Installation, labor of, first installation of a location
3. Meters, including badging and initial testing
4. Meter bars
5. Meter fittings, connections and shelves (first set)
6. Meter vaults
7. Meter couplings
8. Swivels and bushings
9. Transportation from meter shop to location 10. Yokes
"Note A—The cost of removing and resetting meters shall be charged to account 754-1, Removing and Resetting Meters.
"Note B—Minor items shall be included in this account only when in service; otherwise, they shall be carried in materials and supplies."
An asset account, used in this condensed classification of accounts for a Water Utility, listed as to number and title only without elaboration appears like this:
I (b) "324. Meters."
The second account used here for illustration is an expense account (Purification Labor) as listed and described in a complete Uniform System of Accounts for a Water Utility in these words:
II (a) "742. Purification Labor. "This account includes the pay of employees engaged in the operation of the purification system.
"ITEMS
1. Chemicals, application of
2. Chemicals, manufacture of
3. Cleaning basins
4. Filters, operating
5. Ice, removal of
6. Sediment, removal of
7. Washing filters
8. Water softening plant, operation of An expense account, used in this condensed classification of accounts for a water utility, listed
1. For use of some practical data we acknowledge our appreciation to the publishers of Manual of Water Works Accounting, namely Municipal Finance Officers' Association and American Water Works Association. It was necessary to make changes in some amounts and titles because the book deals with Privately-owned utilities and this condensed classification and trial balance deal with Publicly-owned.
(Continued on page 68)
Page 56 / Illinois Municipal Review / March 1958
CONDENSED CLASSIFICATION OF MUNICIPAL WATER UTILITY ACCOUNTS
(Continued from page 56)
as to number and title only without elaboration appear as follows:
II (b) "742. Purification Labor."
If the condensed uniform classification of accounts and numbering system presented herein seem to meet a demand in the Water Utility "trial run," consideration of an extension of the idea into other municipal utilities might be given.
It is hoped that both groups, city officials and accountants, will try to keep in mind that the objective of the municipal auditing law is to encourage good auditing and good accounting systems, both commensurate with the preparation and use of financial statements that promote and reveal the effectiveness of good management. Such effectiveness usually rests heavily on the use of comparative figures—comparative both as to different years of the same organization and as to different governments or utilities for the same year.
Those accountants or municipalities now using or recommending a satisfactory classification of account titles and numbers may feel privileged to continue under such classification until a modification is suggested.
The title page herein, indicates a brief treatment of two topics (a) classification of accounts and (b) forms of financial statements. In both of these topics it is assumed that the accounts are kept on a double entry basis and that a trial balance is an important tool in making both the classification and the statements most effective. Accordingly using the condensed Classification of Accounts, with appropriate numbering system as a foundation, we have applied them to a practical situations and therefore present herein the following three statements :
1. Trial Balance, Municipal Water Works as of April 30, 1958 (assumed date).
2. Balance Sheet, Municipal Water Works, as of April 30, 1958 (assumed date).
3. Income Statement, Municipal Water Works for fiscal year ended April 30, 1958 (assumed date).
In order to show by implication, at least, how smaller utilities may reduce materially the number of accounts used, we are showing also Schedules I, II and III. They reveal opportunities for smaller utilities to use some generally recognized major headings in accounts and statements but to omit some of the minor items and details usually associated with larger organizations. Public Accountants can and probably will recommend additions to, or reductions from, the list as occasion seems to require.
As in preceding bulletins, the Municipal Audit Division expresses the hope that uniformity can be emphasized in compilation of data about fiscal affairs of municipalities and their utility enterprises. Only by the use of uniformity of procedure can comparable data be obtained either from the formal accounting system or from other arithmetical or statistical records.
Public accountants in their auditing engagements can be very helpful in non-auditing phases of their work also and can assist city officials materially in following the general implications of this condensed procedure and in correlating the data used in the annual supplementary report with the audited statements of the Public Accountant.
Page 68 / Illinois Municipal Review / Mach 1958
PROPOSED CONDENSED CLASSIFICATION OF ACCOUNTS
(Titles and Numbers Only)
BALANCE SHEET ACCOUNTS ASSETS AND OTHER
I. Utility Plant
100 Utility Plant (Includes 100-1, 100-3, 100-3,
100-4, 100-5, and 100-6) 107 Utility Plant Adjustments
II. Investments and Fund Accounts
110 Other Physical Property
111 Investments in Associated Utilities
113 Stocks and Bonds
114 Miscellaneous Investments and Special Funds
III. Current and Accrued Assets
120 Cash
121 Special Deposits
123 Working Funds
123 Temporary Cash Investments
124 Notes Receivable
125 Accounts Receivable
126 Receivables from Associated Utilities
128 Interest and Dividends Receivable
129 Rents Receivable
130 Accrued Utility Revenues
131 Materials and Supplies
132 Prepayments by the Utility
133 Other Current and Accrued Assets
IV. Deferred Debits
140 Unamortized Debt Discount and Expense
141 Extraordinary Property Losses
143 Preliminary Survey and Investigation Charges
143 Clearing Accounts (See Accounts Nos. 901 to 905) 146 Other Deferred Debits
V. Reacquired Securities
153 Reacquired Long-Term Debt
LIABILITIES AND OTHER CREDITS
VI. Long-Term Debt
210 Bonds
313 Advances from Associated Utilities
313 Miscellaneous Long-Term Debt
VII. Current and Accrued Liabilities
330 Notes Payable
231 Notes Receivable Discounted
322 Accounts Payable
233 Payables to Associated Utilities
235 Matured Long-Term Debt
226 Matured Interest
227 Customers' Deposits
228 Taxes Accrued
229 Interest Accrued
330 Other Current and Accrued Liabilities
VIII. Deferred Credits
240 Unamortized Premium on Debt
241 Customers' Advances for Construction
242 Other Deferred Credits
IX. Reserves
350 Reserve for Depreciation of Utility Plant
351 Reserve for Amortization of Limited-Term Utility Investments
353 Reserve for Amortization of Utility Plant Acquisition Adjustments
253 Reserve for Depreciation and Amortization of Other Property
254 Reserve for Uncollectible Accounts 358 Miscellaneous Reserves
X. Contributions Received in Aid of Construction
XI. Capital Investment
270 Capitalized Surplus
271 Earned Surplus
UTILITY PLANT ACCOUNTS SUMMARY CLASSIFICATION
I. Intangible Plant
301 Organization
302 Franchises and Consents
303 Miscellaneous Intangible Plant
II. Tangible Plant
310 Work in Progress
311 Land and Water Rights
312 Structures and Improvements
313 Utility Plant Equipment
314 Boiler Plant Equipment
315 Steam Pumping Equipment
316 Electric Pumping Equipment
317 Oil Engine Pumping Equipment
318 Hydraulic Pumping Equipment
319 Other Power Pumping Equipment
320 Purification System
321 Transmission Mains and Accessories
322 Distribution Mains and Accessories
323 Services
324 Meters
325 Hydrants
326 Fire Mains
327 Other Fire Protection Plant
328 Fountains and Basins
329 Office Furniture and Equipment
330 Transportation Equipment
331 Stores Equipment 333 Shop Equipment
333 Laboratory Equipment
334 Tools and Work Equipment
335 Communication Equipment
336 Miscellaneous Equipment
337 Other Tangible Property
341 Utility Plant Purchased
343 Utility Plant Sold
EARNED SURPLUS ACCOUNT SUMMARY CLASSIFICATION
Credits
371 Earned Surplus (at beginning of period)
400 Credit Balance Transferred from Income Account
401 Miscellaneous Credits to Earned Surplus Total Credits
Page 69 / Illinois Municipal Review / March 1958
Debits
410 Debit Balance Transferred from Income Account
413 Miscellaneous Reservations of Earned Surplus
414 Miscellaneous Debits to Earned Surplus
416 Transfers to Capital Investment (No. 270) Total Debits
271 Earned Surplus (at end of period)
INCOME ACCOUNTS SUMMARY CLASSIFICATION
I. Utility Operating Income
501 Operating Revenues
Operating Revenue Deductions
502 Operating Expenses
503 Depreciation
504 Amortization of Limited-Term Utility Investments
505 Amortization of Utility Plant Acquisition Adjustments
506 Property Losses Chargeable to Operations
507 Taxes
Total Operating Revenue Deductions Net Operating Revenues
508 Income from Utility Plant Leased to Others
509 Rent for Lease of Utility Plant Utility Operating Income
II. Other Income
520 Income from Merchandising, Jobbing and Contract Work
521 Income from Non-Utility Operations
522 Revenues from Lease of Other Physical Property
523 Dividend Revenues
524 Interest Revenues
525 Revenues from Sinking and Other Funds
526 Miscellaneous Non-Operating Revenues
527 Non-Operating Revenue Deductions Total Other Income Gross Income
III. Income Deductions
530 Interest on Long-Term Debt
531 Amortization of Debt Discount and Expense
532 Amortization of Premium on Debt—Cr.
533 Taxes Assumed on Interest
534 Interest on Debt to Associated Utilities
535 Other Interest Charges
536 Interest Charged to Construction—Cr.
537 Miscellaneous Amortization
538 Miscellaneous Income Deductions Total Income Deductions Net Income
IV. Disposition of Net Income
540 Miscellaneous Reservations of Net Income Balance Transferred to Earned Surplus
OPERATING REVENUE ACCOUNTS SUMMARY CLASSIFICATION
Sales of Water
601 Metered Sales to General Customers
602 Flat Rate Sales to General Customers
603 Sales to Irrigation Customers
604 Private Fire Protection
605 Public Fire Protection
606 Other Sales to Public Authorities
607 Sales to Other Water Utilities
608 Interdepartmental Sales Total Water Sales
Other Water Revenues
610 Rent from Water Property
611 Interdepartmental Rents
612 Customers' Forfeited Discounts and Penalties
614 Servicing of Customers' Installations
615 Miscellaneous Other Water Revenue Total Other Water Revenues Total Water Operating Revenues
OPERATING EXPENSE ACCOUNTS SUMMARY CLASSIFICATION
I. Source of Supply Expenses
701 Operation Supervision and Engineering
702 Operation Labor
703 Operation Supplies and Expenses
704 Maintenance Supervision and Engineering
705 Maintenance of Source of Supply Plant
706 Water Purchased for Resale
707 Other Water Source Expenses
708 Rents
709 Joint Expenses—Dr.
710 Joint Expenses—Cr.
II. Power and Pumping Expenses
721 Operation Supervision and Engineering
722 Operation Labor
723 Fuel for Power and Pumping
724 Supplies and Expenses
725 Maintenance Supervision and Engineering
726 Maintenance of Structures and Improvements
727 Maintenance of Power and Pumping Equipment
728 Rents
729 Power Purchased or Transferred—Dr.
730 Power Transferred—Cr.
731 Joint Expenses—Dr.
732 Joint Expenses—Cr.
III. Purification Expenses
741 Operation Supervision and Engineering
742 Purification Labor
743 Purification Supplies and Expenses
744 Maintenance Supervision and Engineering
745 Maintenance of Structures and Improvements
746 Maintenance of Purification Equipment
747 Rents
748 Joint Expenses—Dr.
749 Joint Expenses—Cr.
Page 70 / Illinois Municipal Review / March 1958
IV. Transmission and Distribution Expenses
751 Operation Supervision and Engineering
752 Departmental Office Expenses
753 Operation of Transmission and Distribution Lines
754 Operation of Meters
755 Services on Customers' Premises
756 Maintenance Supervision and Engineering
757 Maintenance of Structures and Improvements
758 Maintenance of Mains
759 Maintenance of Other Distribution Plant
760 Rents
761 Joint Expenses—Dr.
762 Joint Expenses—Cr.
Total Transmission and Distribution Expenses
V. Customers' Accounting and Collecting Expenses
779 Supervision
780 Customers' Contracts, Orders, Meter Reading and Collecting
781 Customers' Billing and Accounting
782 Miscellaneous Expenses
783 Uncollectible Accounts
784 Rents
VI. Sales Promotion Expenses
786 Sales Salaries and Expenses
789 Merchandising, Jobbing and Contract Work
VII. Administrative and General Expenses
790 Salaries of General Officers and Executives
791 Other General Office Salaries
792 Expenses of General Officers and General Office Employees
793 General Office Supplies and Expenses
794 Management and Supervision Fees and Expenses
795 Special Services
796 Special Legal Services
797 Regulatory Expenses
798 Insurance
799 Injuries and Damages
800 Employees' Welfare Expenses and Pensions
801 Miscellaneous General Expenses
802 Maintenance of General Property
803 Rents
804 Commissions Paid Under Agency Sales Contracts
805 Franchise Requirements
806 Duplicate Miscellaneous Charges—Cr.
807 Administrative and General Expenses Transferred—Cr.
808 Joint Expenses—Dr.
809 Joint Expenses—Cr.
Total Administrative and General Expenses
CLEARING ACCOUNTS
901 Charges by Associated Utilities—Clearing
902 Stores Expenses—Clearing
903 Transportation Expenses—Clearing
904 Laboratory Expenses—Clearing
905 Shop Express-Clearing
TRIAL BALANCE, MUNICIPAL WATER WORKS
|
As Of April 30, 1958
|
Account
|
|
|
Number
|
Dr.
|
Cr.
|
112 Stocks and Bonds ................
|
$229,500
|
|
114 Miscellaneous Investments ........
|
58,600
|
|
120 Cash ............................
|
131,200
|
|
121 Special Deposits .................
|
40,000
|
|
122 Working Funds ..................
|
800
|
|
124 Notes Receivable .................
|
9,000
|
|
125 Accounts Receivable ..............
|
150,000
|
|
130 Accrued Utility Revenues ........
|
13,300
|
|
250 Reserve for Depreciation of Utility
|
|
|
Plant, Buildings, and Structures
|
|
|
(#312) ........................
|
|
$ 74,000
|
251 Amortization (Reserve for) of Limited-Term Utility Investments . .
|
|
25,000
|
252 Reserve for Depreciation of Equipment, Mains, Hydrants, etc. (Accounts 313-337 inclusive) .......
|
|
261,000
|
254 Reserve for Uncollectible Accounts
|
|
7,500
|
258 Miscellaneous Reserves (Not to be
|
|
|
deducted elsewhere) ............
|
|
20,000
|
131 Materials and Supplies ...........
|
35,000
|
|
132 Prepayments by the Utility .......
|
5,000
|
|
133 Other Current and Accrued Assets.
|
200
|
|
140 Unamortized Debt Discount and Expense ..........................
|
3,800
|
|
143 Clearing- Accounts ................
|
|
|
146 Other Deferred Debits ...........
|
11,265
|
|
210 Bonds ...........................
|
|
1,068,000
|
220 Notes Payable ...................
|
|
10,000
|
222 Accounts Payable ................
|
|
60,000
|
227 Customers' Deposits ..............
|
|
26,000
|
228 Taxes Accrued ...................
|
|
35,000
|
229 Interest Accrued .................
|
|
42,600
|
230 Other Current and Accrued Liabilities ...........................
|
|
30,000
|
242 Other Deferred Credits ...........
|
|
9,300
|
265 Contributions In Aid of Construction ...........................
|
|
25,061
|
270 Capital Investment ...............
|
|
620,000
|
271 Earned Surplus (See also #540) ..
|
|
191,214
|
301 Organization Expense ............
|
50,000
|
|
310 Work in Progress ................
|
70,000
|
|
311 Land and Water Rights ..........
|
260,000
|
|
312 Structures and Improvements .....
|
400,000
|
|
314 Boiler Plant Equipment ..........
|
26,000
|
|
315 Steam Pumping Equipment .......
|
120,350
|
|
316 Electric Pumping Equipment .....
|
106,900
|
|
320 Purification System ..............
|
160,000
|
|
321 Transmission Mains and Accessories
|
240,000
|
|
322 Distribution Mains and Accessories
|
330,925
|
|
323 Services .........................
|
41,600
|
|
324 Meters ...........................
|
81,000
|
|
325 Hydrants ........................
|
76,000
|
|
326 Fire Mains .......................
|
19,000
|
|
329 Office Furniture and Equipment ...
|
43,825
|
|
330 Transportation Equipment ........
|
15,000
|
|
331 Store Equipment .................
|
5,600
|
|
332 Shop Equipment .................
|
6,000
|
|
333 Laboratory Equipment ...........
|
1,800
|
|
335 Communications Equipment .......
|
6,000
|
|
336 Miscellaneous Equipment .........
|
17,900
|
|
503 Depreciation .....................
|
33,000
|
|
504 Amortization of Limited-Term Utility Investments ................
|
5,000
|
|
506 Property Losses Chargeable to Operations .........................
|
2,000
|
|
507 Taxes ...........................
|
25,000
|
|
508 Income from Utility Plant Leased
|
|
|
to Others ......................
|
|
16,000
|
609 Rent for Lease of Utility Plant ...
|
|
6,000
|
520 Income from Merchandising, Job
|
|
|
bing, and Contract Work .......
|
|
6,000
|
521 Income from Non-Utility Operations ..........................
|
|
2,000
|
522 Revenues from Lease of Other
|
|
|
Physical Property ..............
|
|
5,000
|
524 Interest Revenues ................
|
|
3,000
|
525 Revenues from Sinking and Other
|
|
|
Funds .........................
|
|
6,000
|
526 Miscellaneous Non-Operating Revenues ..........................
|
|
2,000
|
627 Non-Operating- Revenue Deductions
|
6,000
|
|
530 Interest on Long-Term Debt ......
|
34,000
|
|
531 Amortization of Debt Discount and
|
|
|
Expense .......................
|
1,000
|
|
532 Amortization of Premium on Debt
|
|
|
—Cr. ..........................
|
|
1,000
|
533 Taxes Assumed on Interest .......
|
600
|
|
535 Other Interest Charges ...........
|
1,600
|
|
536 Interest Charged to Construction—
|
|
|
Cr. ............................
|
|
2,000
|
537 Miscellaneous Amortization .......
|
600
|
|
538 Miscellaneous Income Deductions
|
1,000
|
|
540 Miscellaneous Reservations of Net
|
|
|
Income ........................
|
20,000
|
|
601 Metered Sales to General Customers
|
|
366,000
|
602 Flat Rate Sales to General Customers ........................
|
|
60,000
|
603 Sales to Irrigation Customers .....
|
|
20,000
|
604 Private Fire Protection ..........
|
|
10,000
|
605 Public Fire Protection ...........
|
|
40,000
|
606 Other Sales to Public Authorities .
|
|
10,000
|
607 Sales to Other Water Utilities ....
|
|
20,000
|
608 Interdepartmental Sales ..........
|
|
6,006
|
Page 71 / Illinois Municipal Review / March 1958
Account
|
|
|
Number
|
Dr.
|
Cr.
|
610 Rent from Water Property .......
|
|
7,000
|
611 Interdepartmental Rents ..........
|
|
8,000
|
612 Customers' Forfeited Discounts and
|
|
|
Penalties ......................
|
|
2,500
|
614 Servicing of Customers Installations ..........................
|
|
7,000
|
615 Miscellaneous Other Water Revenues ..........................
|
|
5,500
|
701 Source Operation Supervision and
|
|
|
Engineering ....................
|
9,600
|
|
702 Operation Labor .................
|
60,400
|
|
703 Operation Supplies and Expenses . .
|
3,000
|
|
704 Maintenance Supervision and Engineering ........................
|
2,300
|
|
705 Maintenance of Source of Supply
|
|
|
Plant ..........................
|
25,000
|
|
721 Power Operation Supervision and
|
|
|
Engineering ...................
|
5,600
|
|
722 Power Operation Labor ...........
|
46,200
|
|
723 Fuel for Power and Pumping .....
|
30,000
|
|
724 Power Supplies and Expenses .....
|
5,000
|
|
725 Maintenance Supervision and Engineering ........................
|
500
|
|
726 Maintenance of Structures and Improvements ....................
|
780
|
|
727 Maintenance of Power and Pumping
|
|
|
Equipment .....................
|
3,320
|
|
741 Purification Supervision and Engineering ........................
|
7,000
|
|
742 Purification Labor ................
|
30.000
|
|
743 Purification Supplies and Expenses
|
16,000
|
|
744 Maintenance Supervision and Engineering ........................
|
2,500
|
|
745 Maintenance of Structures and Improvements ....................
|
1,500
|
|
746 Maintenance of Purification Equipment ..........................
|
4,500
|
|
751 Transmission Supervision and Engineering ........................
|
7,000
|
|
752 Departmental Office Expenses .....
|
2,200
|
|
753 Operation of Transmission and Distribution Lines ................
|
25,800
|
|
754 Operation of Meters ..............
|
5,600
|
|
755 Services on Customers' Premises . .
|
3,800
|
|
766 Maintenance Supervision and Engineering ........................
|
3,800
|
|
767 Maintenance of Structures and Improvements ....................
|
500
|
|
758 Maintenance of Mains ............
|
15,000
|
|
759 Maintenance of Other Distribution
|
|
|
Plant ..........................
|
4,000
|
|
779 Supervision Customers' Accounting
|
4,800
|
|
780 Customers' Contracts, Orders, Meter
|
|
|
Reading and Collecting .........
|
18,500
|
|
781 Customers' Billing and Accounting
|
28,100
|
|
782 Miscellaneous Expenses ..........
|
8,575
|
|
783 Uncollectible Accounts ...........
|
2,425
|
|
790 Salaries of General Officers and Executives .......................
|
7,100
|
|
791 Other General Office Salaries .....
|
8,000
|
|
792 Expense of General Officers and
|
|
|
General Office Employees .......
|
800
|
|
793 General Office Supplies and Expenses .........................
|
1,300
|
|
796 Special Legal Services ...........
|
2,000
|
|
|
10,000
|
|
801 Miscellaneous General Expenses ..
|
1,000
|
|
802 Maintenance of General Property ..
|
1,500
|
|
901 Clearing Accounts ................
|
|
|
905
|
|
|
|
$3,310,065
|
$3,310,065
|
BALANCE SHEET, MUNICIPAL WATER WORKS
|
As of April 30, 1958
|
|
|
|
As of Fiscal
|
Year End
|
ASSETS
|
4-30-58
|
4-30-57*
|
Utility Plant:
|
|
|
Utility Plant in Service .............
|
$2,007,900
|
$1,891,500
|
Construction Work In Progress ......
|
70,000
|
149,000
|
Total Utility Plant (Schedule I) ...
|
$2,077,900
|
$2,040,500
|
Investment and Fund Accounts:
|
|
|
Stocks and Bonds ...................
|
$229,500
|
$210,000
|
|
58,600
|
58,000
|
Total Investment and Fund Accounts
|
$ 288,100
|
$ 268,000
|
Current and Accrued Assets:
|
|
|
Cash ...............................
|
$131,200
|
$ 127,500
|
Special Deposits ....................
|
40,000
|
35,000
|
Working- Funds .....................
|
800
|
800
|
Notes Receivable ....................
|
9,000
|
9,600
|
Accounts Receivable .................
|
150,000
|
155,914
|
Accrued Utility Revenues ............
|
13,300
|
14,000
|
Materials and Supplies ..............
|
35,000
|
35,500
|
Prepayments by the Utility ..........
|
5,000
|
4,500
|
Other Current and Accrued Assets ...
|
200
|
200
|
Total Current and Accrued Assets ..
|
$ 384,500
|
$ 382,914
|
Account
|
|
|
Number
|
Dr.
|
Cr.
|
Deferred Debits:
|
|
|
Unamortized Debt Discount and Expense .............................
|
$ 3,800
|
$3,900
|
Other Deferred Debits ..............
|
11,265
|
11,200
|
Total Deferred Debits .............
|
$ 15,065
|
$ 15,100
|
Total Assets ......................
|
$2,765,565
|
$2,706,514
|
LIABILITIES, RESERVES AND
|
NET WORTH
|
As of Fiscal
|
Year End.
|
Long-Term Debt:
|
4-30-58
|
4-30-57
|
Bonds ..............................
|
$1,068,000
|
$1,103,000
|
Current and Accrued Liabilities:
|
|
|
Notes Payable ......................
|
$ 10,000
|
$ 9,500
|
Accounts Payable ...................
|
50,000
|
29,000
|
Customers' Deposits .................
|
26,000
|
25,600
|
Taxes Accrued ......................
|
35,000
|
35,800
|
Interest Accrued ....................
|
42,500
|
44,600
|
Other Current and Accrued Liabilities
|
30,000
|
32,000
|
Total Current and Accrued Liabilities .............................
|
$ 193,500
|
$ 176,400
|
1. In this and succeeding financial statements and schedules, comparative figures are given for the preceding period or year end. Such amounts in this case, as in practice, are obtained from similar statements on file prepared one year earlier. They are not taken from the trial balance reproduced herein.
|
Deferred Credits:
|
|
|
Miscellaneous Deferred Credits ......
|
$ 9,300
|
$ 9,400
|
Total Deferred Credits ............
|
$ 9,300
|
$ 9,400
|
Reserves:
|
|
|
Reserve for Depreciation of Utility
|
|
|
Plant Buildings (#312) ............
|
$ 74,000
|
$ 71,500
|
Reserve for Amortization of Limited-
|
|
|
Term Utility Investments .........
|
25,000
|
23,500
|
Reserve for Depreciation of Equipment,
|
|
|
Mains, Hydrants, etc., (#313-337) ..
|
261,000
|
253,500
|
Reserve for Uncollectible Accounts . .
|
7,500
|
6,500
|
Miscellaneous Reserves (from Net Income or Surplus) .................
|
249,500
|
229,500
|
Total Reserves ....................
|
$ 617,000
|
$ 584,600
|
Contributions in Aid of Construction ...
|
$ 25,051
|
$ 22,000
|
Capital Investment:
|
|
|
Capitalized Surplus .................
|
$ 620,000
|
$ 620,000
|
Surplus Earned, prior years .........
|
191,214
|
156,514
|
Unappropriated Surplus Earned, year
|
|
|
ended 4-30-58 .....................
|
41,500
|
34,700
|
Total Capital Investment and Sur
|
|
|
plus ............................
|
$ 852,714
|
$ 811,214
|
Total Liabilities, Reserves, and Net
|
|
|
Worth ..........................
|
$2,765,565
|
$2,706,514
|
INCOME STATEMENT, MUNICIPAL WATER WORKS
|
For Fiscal Year Ended April 30, 1958
|
|
For Fiscal
|
Year Ended
|
|
4-30-58
|
4-30-57
|
Utility Operating Income:
|
|
|
Operating Revenues (Schedule II) ...
|
$ 540,000
|
$ 520,000
|
Less Operating Deductions:
|
|
|
Opera tins Expenses (Schedule III).
|
415,000
|
400,000
|
Depreciation ......................
|
33,000
|
30,000
|
Amortization of Investments .......
|
5,000
|
4,000
|
Property Losses Chargeable to Operations ..........................
|
2,000
|
|
Taxes ............................
|
25,000
|
26,000
|
Total Operating Revenue Deduc
|
|
|
tions .........................
|
$ 480,000
|
$ 460,000
|
Net Operating Revenue (1) ......
|
$ 60,000
|
$ 60,000
|
Income from Utility Plant Leased .....
|
$ 15,000
|
$ 10,000
|
Rent for Lease of Utility Plant ........
|
5,000
|
6,000
|
Miscellaneous Income (2) .......
|
$ 20,000
|
$ 16,000
|
Utility Operating Income (1) plus
|
|
|
(2), (3) .......................
|
$ 80,000
|
$ 76,000
|
Other Income:
|
|
|
Income from Merchandising .........
|
$ 5,000
|
$ 5,500
|
Income from Non-Utility Operations..
|
2,000
|
1,500
|
Revenues from Lease of Other Property ..............................
|
5,000
|
5,000
|
Interest Revenues ..................
|
3,000
|
2,000
|
Revenue from Sinking Funds ........
|
6,000
|
4,500
|
Miscellaneous Non-Operating Revenues
|
2,000
|
1,500
|
|
$ 23,000
|
$ 20,000
|
Less Non-Operating Revenue Deductions .............................
|
6,000
|
5,000
|
Total Other Income (4) ........
|
$ 17,000
|
$ 15,000
|
Gross Income (3) plus (4), (5) ..
|
$ 97,000
|
$ 91,000
|
Page 72 / Illinois Municipal Review / March 1958
Account
|
|
|
Number
|
Dr.
|
Cr.
|
Other Deductions:
|
|
|
Interest on Long-Term Debt .........
|
$ 34,000
|
$35,000
|
Amortization of Debt Discount and Expense ............................
|
1,000
|
1,000
|
Amortization of Premium on Debt—Cr.
|
(1,000)
|
(1,000)
|
Taxes Assumed on Interest ..........
|
500
|
400
|
Other Interest Charges ..............
|
1,500
|
1,000
|
Interest Charged to Construction—Cr.
|
(2,000)
|
(1,000)
|
Miscellaneous Amortization .........
|
500
|
400
|
Miscellaneous Income Deductions ....
|
1,000
|
500
|
Total Income Deductions (6) ....
|
$ 35,500
|
$36,300
|
Net Income (5) minus (6) .......
|
$ 61,500
|
$ 64,700
|
Miscellaneous Reservations of Net In
|
|
|
come .............................
|
20,000
|
20,000
|
Balance of Net Income transferred to
|
|
|
Earned Surplus ...................
|
$ 41,500
|
$ 34,700
|
SCHEDULE I. MUNICIPAL -WATER WORKS
|
Utility Plant Items (Total $2,077,900)
|
|
As of
|
As of
|
|
4-30-58
|
4-30-57
|
Major Account Totals:
|
|
|
Organization Expenses ...........
|
$50,000
|
$50,000
|
Water Rights and Land ..........
|
260,000
|
242,500
|
Structures and Improvements ....
|
400,000
|
380,000
|
Utility Plant Equipment .........
|
1,297,900
|
1,219,000
|
Work in Progress ................
|
70,000
|
149,000
|
|
$ 2,077,900
|
$2,040,500
|
Account
|
|
|
Number
|
|
|
Detailed Accounts In Classification:
|
|
|
311 Water Rights and Land:
|
|
|
Water Rights ..................
|
$ 120,000
|
$ 105,000
|
Reservoir Land ................
|
29,000
|
27,000
|
Power and Pumping Land .......
|
22,000
|
22,000
|
Purification Land ..............
|
35,000
|
35,000
|
Transmission Land ............
|
22,000
|
21,500
|
Standpipe Land ................
|
3,000
|
3,000
|
Distribution Land ..............
|
6,000
|
6,000
|
Office Land ....................
|
4,000
|
4,000
|
Store, Shop and Garage Land ...
|
20,000
|
20,000
|
Total Water Rights and Land.
|
$260,000
|
$242,500
|
312 Structures and Improvements:
|
|
|
Collecting and Impounding Reservoirs ........................
|
$100,000
|
$95,000
|
Wells and Springs .............
|
100,000
|
88,000
|
Other Water Service Structures
|
85,000
|
84,000
|
Power and Pumping Structures
|
35,000
|
35,000
|
Purification Buildings ..........
|
35,000
|
33,500
|
Distribution Standpipe .........
|
20,000
|
20,000
|
Office Buildings ................
|
10,000
|
10,000
|
Stores, Shops and Garage Buildings ........................
|
15,000
|
14,500
|
|
$400,000
|
$380,000
|
313 Utility Plant Equipment:
|
|
|
314 Boiler Plant Equipment ........
|
$26,000
|
$30,000
|
315 Steam Pumping Equipment ....
|
120,350
|
150,000
|
316 Electric Pumping- Equipment . .
|
106,900
|
60,000
|
320 Purification System ...........
|
160,000
|
140,000
|
321 Transmission Mains and Accessories ......................
|
240,000
|
235,000
|
322 Distribution Mains and Accessories ......................
|
330,925
|
295,600
|
323 Services ......................
|
41,600
|
40,800
|
324 Meters .......................
|
81,000
|
78,600
|
325 Hydrants .....................
|
76,000
|
74,500
|
326 Fire Mains ....................
|
19,000
|
19,900
|
329 Office Furniture and Equipment
|
43,826
|
42,300
|
330 Transportation Equipment .....
|
15,000
|
15,500
|
331 Stores Equipment .............
|
5,600
|
5,600
|
332 Shop Equipment ..............
|
6,000
|
5,500
|
333 Laboratory Equipment .........
|
1,800
|
1,800
|
335 Communications Equipment ....
|
6,000
|
6,000
|
336 Miscellaneous Equipment ......
|
17,900
|
17,900
|
|
$1,297,900
|
$1,219,000
|
SCHEDULE II. MUNICIPAL WATER WORKS
|
Operating Revenue Items (Total $540,000)
|
Account
|
For Fiscal
|
Year Ended
|
Numbers
|
4-30-58
|
4-30-57
|
Sales of Water
|
|
|
601 Metered Sales to General Customers....................
|
$355,000
|
$332,000
|
602 Flat Rate Sales to General Customers ......................
|
50,000
|
45,000
|
603 Sales to Irrigation Customers .
|
20,000
|
25,000
|
604 Private Fire Protection .......
|
10,000
|
10,000
|
605 Public Fire Protection ........
|
40,000
|
45,000
|
606 Other Sales to Public Authorities
|
10,000
|
9,000
|
607 Sales to Other Water Utilities .
|
20,000
|
20,000
|
608 Interdepartmental Sales .......
|
5,000
|
5,000
|
Total Revenue from Sales of
|
|
|
of Water (1) .............
|
$ 510,000
|
$ 491,000
|
Other Water Revenues
|
|
|
610 Rent from Water Property ....
|
$7,000
|
$ 7,000
|
611 Interdepartmental Rents .......
|
8,000
|
8,000
|
Account
|
|
|
Number
|
Dr.
|
Cr.
|
612 Customers' Forfeited Discounts
|
|
|
and Penalties ................
|
2,500
|
3,000
|
614 Servicing of Customers' Installa
|
|
|
tions ........................
|
7,000
|
7,500
|
615 Miscellaneous Other Water Rev
|
|
|
enues .......................
|
5,500
|
3,500
|
Total Other Water Revenues
|
|
|
(2) ........................
|
$30,000
|
$29,000
|
Total Operating Revenues (1)
|
|
|
plus (2) ................. $
|
$540,000
|
$520,000
|
SCHEDULE III. MUNICIPAL WATER WORKS
|
Operating Expenses (Total $415,000)
|
Account
|
For Fiscal
|
Year Ended
|
Number
|
4-30-58
|
4-30-57
|
Source of Supply:
|
|
|
701 Operation Supervision and Engineering ......................
|
$9,600
|
$9,500
|
702 Operation Labor ...............
|
60,400
|
48,400
|
703 Operation Supplies and Expenses
|
3,000
|
3,200
|
704 Maintenance Supervision and Engineering ....................
|
2,300
|
2,200
|
705 Maintenance of Source of Supply
|
|
|
Plant ........................
|
25,000
|
24,500
|
Total Source of Supply Expenses ..................... $
|
100,300
|
$ 87,800
|
Power and Pumping
|
|
|
721 Power Operation Supervision and
|
|
|
Engineering ................. $
|
5,600
|
$ 5,500
|
722 Operation Labor - Power ........
|
46,200
|
45,200
|
723 Fuel for Power and Pumping . .
|
30,000
|
29,000
|
724 Supplies and Expenses ........
|
5,000
|
6,100
|
725 Maintenance Supervision and Engineering ....................
|
500
|
400
|
726 Maintenance of Structures and
|
|
|
Improvements ...............
|
780
|
700
|
727 Maintenance of Power and Pumping Equipment ...............
|
3,320
|
3,300
|
Total Power and Pumping Expense ................
|
91,400
|
89,200
|
Purification:
|
|
|
741 Purification Supervision and Engineering ....................
|
7,000
|
7,200
|
742 Purification Labor ............
|
30,000
|
29,600
|
743 Purification Supplies and Expenses .......................
|
16,000
|
15,800
|
744 Maintenance Supervision and Engineering ....................
|
2,500
|
2,600
|
745 Maintenance of Structures and
|
|
|
provements ..................
|
1,500
|
1,400
|
746 Maintenance of Purification
|
|
|
Equipment ...................
|
4,500
|
4,400
|
Total Purification Expense ..........
|
$61,500
|
$ 60,900
|
Transmission and Distribution:
|
|
|
751 Transmission Supervision and Engineering ...................
|
$ 7,000
|
$ 6,900
|
752 Departmental Office Expenses . .
|
2,200
|
2,000
|
753 Operation of Transmission and
|
|
|
Distribution Lines ...........
|
25,800
|
25,000
|
754 Operation of Meters ............
|
5,600
|
5,800
|
755 Services on Customers' Premises
|
3,800
|
4,000
|
756 Maintenance Supervision and Engineering ....................
|
3,800
|
3,600
|
757 Maintenance of Structures and
|
|
|
Improvements ...............
|
500
|
450
|
758 Maintenance of Mains ..........
|
15,000
|
14,850
|
759 Maintenance of Other Distribu
|
|
|
tion Plant ...................
|
4,000
|
3,900
|
Total Transmission and Distri
|
|
|
bution Expenses ............
|
$ 67,700
|
$ 66,500
|
Customers' Accounting and Collecting:
|
|
|
779 Supervision, Customers' Accounting ..........................
|
$ 4,800
|
$ 4,600
|
780 Customers' Contracts, Orders,
|
|
|
Meter Heading and Collecting .
|
18,500
|
18,000
|
781 Customers' Billing and Accounting ..........................
|
28,100
|
27,900
|
782 Miscellaneous Expenses ........
|
8,575
|
10,000
|
783 Uncollectible Accounts .........
|
2,425
|
1,400
|
Total Customers' Accounting
|
|
|
and Collecting Expenses ....
|
$ 62,400
|
$ 61,900
|
Administrative and General:
|
|
|
790 Salaries of General Officers and
|
|
|
Executives ...................
|
$7,100
|
$ 7,000
|
791 Other General Office Salaries . . .
|
8,000
|
7,900
|
792 Expenditures of General Officers
|
|
|
and General Office Employees .
|
800
|
900
|
793 General Office Supplies and Expenses .......................
|
1,300
|
1,400
|
796 Special Legal Services .........
|
2,000
|
2,500
|
798 Insurance ......................
|
10,000
|
10,000
|
801 Miscellaneous General Expenses .
|
1,000
|
2,000
|
802 Maintenance of General Property
|
1,500
|
2,000
|
Total Administrative and Gen
|
|
|
eral Expenses ..............
|
$ 31,700
|
$33,700
|
Total Operating Expenses ....
|
$415,000
|
$ 400,000
|
Page 73 / Illinois Municipal Review / March 1958
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