Annual Audit Report
of the
ILLINOIS MUNICIPAL LEAGUE
MEYER & VAN METER CERTIFIED PUBLIC ACCOUNTANTS |
|
215 SOUTH GUANO AVE., WEST
SPRINGFIELD.ILLINOIS 62704 • TELEPHONE 217/544-0777
|
Accountants' Report
Illinois Municipal League:
We have examined the consolidated balance sheet of the Illinois Municipal League as of December 31, 1987 and 1986, and the related consolidated statements of revenue, expenses, and changes in fund balance and changes in financial position for the years then ended. Our examinations were 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.
In our opinion, the financial statements referred to above present fairly the consolidated financial position of the Illinois Municipal League as of December 31, 1987 and 1966, and the results of its consolidated operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.
June 21, 1988
Springfield, Illinois
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1987 AND 1986
|
1987 | 1986 |
ASSETS | | |
|
CURRENT ASSETS
| | |
Cash | $ 79,829 | $ 48,157 |
Temporary cash investments (Note 2) | 1,210,259 | 1,276,105 |
Accrued interest | 6,200 | 786 |
Accounts receivable: | | |
Loan program fee (Note 4) | 370,011 | 128,640 |
Insurance service charges | 24,602 | 15,350 |
Other | 4,972 | 7,678 |
Prepaid pension expense (Note 5) | 10,000 | 10,000 |
Other | 4,880 | 3,802 |
Total current assets | 1,710,753 | 1,490,518 |
|
FIXED ASSETS (Note 1-c and 3) | 704,540 | 255,574 |
|
|
LOAN PROGRAM FEE RECEIVABLE (Note 4) | | 370,011 |
|
PREPAID PENSION EXPENSE (Note 5) | 70,000 | 80,000 |
|
TOTAL. ASSETS | $2,485,293 | $2,196,103 |
|
|
LIABILITIES AND
FUND BALANCE | | |
|
CURRENT LIABILITIES | | |
Accounts payable | $ 19,505 | $ 12,676 |
Unearned income: | | |
Dues | 180,765 | 153,951 |
Advertising | 5,412 | 3,404 |
Other | 4,168 | 1,212 |
Total current liabilities | 209,850 | 171,243 |
|
FUND BALANCE | 2,275,443 | 2,024,860 |
|
TOTAL LIABILITIES AND FUND BALANCE | $2,485,293 | $2,196,103 |
See the accompanying notes | |
|
CONSOLIDATED STATEMENT OF REVENUE,
EXPENSES AND CHANGES IN FUND BALANCE
YEARS ENDED DECEMBER 31, 1987 AND 1986
|
|
| 1987 | 1986 |
REVENUE | | |
Membership dues | $ 326,037 | $ 319,495 |
Illinois Municipal Review: | | |
Advertising | 30,775 | 3l,697 |
Subscriptions | 2,187 | 1,180 |
Foreign fire Insurance service charges | 285,856 | 261,056 |
Conferences | 217,112 | 189,584 |
Publications | 29,177 | 19,616 |
Interest on invested funds | 128,500 | 106,564 |
Services and facilities fee (Note 6) | 332,099 | 300,299 |
Loan program fee (Note 4) | -0- | 731,250 |
Other | 2,100 | 63 |
Total revenue | 1,353,843 | 1,961,504 |
|
EXPENSES | | |
Salaries - excluding legal services | 288,899 | 280,755 |
Payroll taxes and contributions to | | |
Illinois Municipal Retirement Fund | 62,714 | 74,202 |
Automobile maintenance | 1,946 | 1,479 |
Office supplies | 18,585 | 20,804 |
Office expense | 52,212 | 42,628 |
Travel | 51,418 | 41,543 |
Postage | 23,922 | 22,618 |
Memberships | 621 | 980 |
Insurance | 31,078 | 28,409 |
Illinois Municipal Review | 83,150 | 74,385 |
Conference expense | 178,572 | 178,005 |
Legal services | 117,297 | 101,466 |
Publications | 26,927 | 32,814 |
Dues - National League of Cities | 27,264 | 27,088 |
Library | 1,927 | 3,965 |
Accounting and auditing | 21,505 | 21,993 |
Depreciation | 32,949 | 30,329 |
Meetings and committees | 45,053 | 54,537 |
Building repairs and maintenance | 8,174 | 11,513 |
Equipment leasing and maintenance | 23,823 | 25,465 |
Other | 5,244 | 4,379 |
Total expenses | 1,103,260 | 1,079,357 |
|
EXCESS OF REVENUE OVER EXPENSES | 250,583 | 882,147 |
|
FUND BALANCE - BEGINNING OF YEAR | 2,024,860 | 1,142,713 |
|
FUND BALANCE - END OF YEAR | $2,275,443 | $2,024,860
|
CONSOLIDATED STATEMENT OF CHANGES
IN FINANCIAL POSITION
YEARS ENDED DECEMBER 31, 1987 AND 1986
| 1987 | 1986 |
SOURCES OF FUNDS | | |
Operations: | | |
Excess of revenue over expenses | $250,583 | $ 882,147 |
Add (deduct ) items not involving | | |
working capital: | | |
Depreciation | 32,949 | 30,329 |
Loan program fee | | (370,011) |
Pension expense | 10,000 | 10,000 |
Total sources of funds from operations | 293,532 | 552,465 |
Decrease in long-term portion of loan prograal | 370.011 | ________ |
Total aources of funds | 663,543 | 552,465 |
|
|
USES OF FUNDS - Additions to fixed assets | 481,915 | 97,139 |
|
INCREASE IN WORKING CAPITAL | $181,628 | $ 455,326 |
|
|
CHANGES TO WORKING CAPITAL |
|
|
INCREASES (DECREASES) IN CURRENT ASSETS | | |
Cash | $ 31,672 | $( 26,160) |
Temporary cash investments | (65,846) | 373,585 |
Interest accrued | 5,414 | ( 4,263) |
Accounts receivable | 247,917 | 99,213 |
Other | 1,078 | 315 |
Increase In current assets | 220,235 | 442,690 |
|
INCREASES (DECREASES) IN CURRENT LIABILITIES | | |
Accounts payable | 6,829 | 3,742 |
Unearned income | 28,822 | ( 17,156) |
Other | 2,956 | 778 |
Increase (decreaae) in current liabilities | 38,607 | ( 12,636) |
|
INCREASE IN WORKING CAPITAL | $181,628 | $ 455,326
|
Continued on next page
August 1988 / Illinois Municipal Review / Page 21
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1987 AND 1986
1. SIGNIFICANT ACCOUNTING POLICIES
a. Principles of consolidation. The financial statements include the accounts of the Illinois Municipal League (League) and its wholly-owned subsidiary, the Illinois Municipal League Building Corporation.
b. Income recognition. Dues are considered earned pro rarta over the dues year for each member-municipality, or one-twelfth of the annual amount each month.
c. Property and depreciation. Property is carried at cost. Depreciation is provided on the straight-line method over the estimated useful lives of the assets.
d. Investments. Investments are carried at amortized cost.
e. Reclassifications. Certain previously reported amounts for 1986 have been reclassified to conform to 1987 classifications.
2. TEMPORARY CASH INVESTMENTS
The temporary cash investments approximate market value and consist of the following:
| 1987 | 1986 |
Certificates of deposit | $ 506,095 | $ 306,223 |
Federal agency securities | 704,164 | |
U. S. Treasury bills | | 519,882 |
U. S. Treasury note subject to | | |
bank repurchase agreement | _________ | 450,000 |
Total | $l,210,259 | $l,276,105
|
3. FIXED ASSETS
Fixed assets at December 31 are as follows:
| 1987 | 1986 |
Land | $ 49,865 | $49,865 |
Building | 175,995 | 175,995 |
Furniture and equipment | 108,194 | 96,240 |
Automobiles | 61,841 | 62,512 |
Construction in progress | 459,156 | ________ |
Total | 855,051 | 384,612 |
Accumulated depreciation | 150,511 | 129,038 |
Fixed assets - net | $ 704,540 | $ 255,574
|
See Note 8 for building purchased in 1987.
4. POOLED MUNICIPAL LOAN PROGRAM
In 1986, the League commenced sponsorship of the Illinois Municipal League Pooled Municipal Loan Program which provides low cost financing to the League's member municipalities. The League, acting as the Program Administrator, is to represent the Village of Woodridge by coordinating the process of making loans and managing the Program.
Upon the initial funding of the Program in 1986, the League earned a fee of $731,250. Of this amount, $232,599 was received in 1986 and $128,640 was received in 1987. The balance of $370,011 is expected to be collected from the bank trustee in 1988. In addition, the League is to receive an annual administration fee based on the amount of outstanding loans to participants. No such loans were outstanding as of December 31, 1987 or December 31, 1986.
5. PENSION PLAN
The League is a member of the Illinois Municipal Retirement Fund ("IMRF"), an agent-multiple-employer public employee retirement system. Substantially all employees are covered by the defined benefit plan with benefits based upon years of service and final compensation. Employees contribute 4.5% of their annual salary to IMRF and the League is required to contribute the remaining amounts necessary to fund the system using the actuarial basis specified by state statute.
At December 31, 1987, the actuaries for IMRF determined that the present value of the total pension benefit obligation, including vested benefits of $1,129,715, was $l,133,913. Net assets available for benefits at cost total $1,342,576 (market value is $1,294,378). The assumed rate of return used to compute the above was 7%.
Total contributions by the League to IMRF was $35,680 which consisted of $10,956 normal cost, $20,862 amortization of the unfunded accrued liability, and $3,862 death and disability costs. The unfunded liability is being amortized over a 10-year period. In addition to the funding of the pension costs accrued, the League elected to fund an additional $100,000 in 1985. The prepaid pension contribution is being amortized to future periods since such prepayment reduces future funding requirements of the plan.
Certain changes in actuarial assumptions, benefit provisions and methodology were made in 1987 in determining the pension benefit obligation. Separate dollar effects of each change were not economically determinable on an individual employee basis by IMRF.
6. RELATED PARTY TRANSACTIONS
The League provides services and facilities to a related organization, the Illinois Municipal League Risk Management Association. The Association, which has a common board of directors with the League, is an unincorporated not-for -profit association that provides a cooperative program of self-insurance for participating Illinois municipalities. The League's fee is based on contributions and interest earned by the Association.
7. INCOME TAXES
The League is exempt from income taxes and therefore no provision for income taxes is required.
8. CONSTRUCTION IN PROGRESS
In May 1987, the League purchased a new headquarters building in Springfield, Illinois for $380,000. Improvements are to be made to the building during 1987 and 1988 at an approximate cost of $950,000. As of December 31, 1987, the League has incurred $79,156 of costs towards the planned improvements.
Page 22 / Illinois Municipal Review / August 1988
Illinois Periodicals Online (IPO) is a digital imaging project at the
Northern Illinois University Libraries funded by the Illinois State Library
|
|