1970 - Comp. Annual Financial Report
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AUDITED FINANCIAL STATEMENTS
AND OTHER FINANCIAL INFORMATION
VILLAGE OF SHOREWOOD, MINNESOTA - LIQUOR FUND
December 31, 1970
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CONTENTS
AUDITED FINANCIAL STATEMENTS:
ACCOUNTANTS I REPORT....................................... PAGE 3
STATEMENT OF FINANCIAL POSITION........................... 4
STATEMENT OF EARNINGS AND RETAINED EARNINGS............... 5
OTHER FINANCIAL INFORMATION:
EXAMINATION COMMENTS...................................... 6
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ERNST & ERNST
FIR S T N AT ION A L BAN K B L D G.
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MINNEAPOLIS, MINN. 55402
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ACCOUNTANTS' REPORT
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The Village Council
Village of Shorewood, Minnesota
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We have examined the statement of financial position of the Village of Shorewood -
Liquor Fund as of December 31, 1970 and the related statement of earnings and
retained earnings for the year then 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 neces-
sary in the circumstances.
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In our opinion, the accompanying statements of financial position and earnings
and retained earnings present fairly the financial position of the Village of
Shorewood - Liquor Fund at December 31, 1970 and the results of its operations
and changes in fund balance for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with that of the
preceding year.
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Minneapolis, Minnesota
May 14, 1971
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$ 6,115.65 $ 7,712.16
pension
998.22 988.21
814.07 1,098.62
TOTAL CURRENT LIABILITIES $ 7,927.94 $ 9,798.99
90,235.11 136,016.31
$98,163.05 $145,815.30
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STATEMENT OF FINANCIAL POSITION
VILLAGE OF SHOREWOOD - LIQUOR FUND
ASSETS
CURRENT ASSETS
Cash
Savings certificates
Inventory - at the lower of cost (first-in,
first-out method) or market
Prepaid expenses
TOTAL CURRENT ASSETS
FIXTURES AND EQUIPMENT - on the basis of cost
Furniture, fixtures and equipment
Leasehold improvements
Allowances for depreciation (deduction)
LIABILITIES AND FUND BALANCE
CURRENT LIABILITIES
Accounts payable
Salaries, payroll taxes and
contribution
State sales tax
FUND BALANCE
Retained earnings
December 31
1970 1969
$17,253.12
33,500.00
$ 21,675.51
73,500.00
35,712.28
1,415.92
$87,881. 32
35,398.95
3,110. 70
$133,685.16
$ 17,294.23
3,427.99
8, 592.08)
12,130.14
$17,364.18
3,427.99
( 10,510.44) (
$10,281.73 $
$98,163.05 $145,815.30
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STATEMENT OF EARNINGS AND RETAINED EARNINGS
VILLAGE OF SHOREWOOD - LIQUOR FUND
Net sales:
Liquor and wine
Beer
Miscellaneous
Cost of products sold:
Inventory at beginning of year
Purchases, less discounts
Less inventory at end of year
GROSS MARGIN
Operating expenses:
Salaries
Payroll taxes and employee benefits
Rent
Light and power
Telephone
Insurance
Depreciation
Accounting and auditing
Bad debts
Supplies
Office expense
Repairs
Other
Interest income
NET EARNINGS
Retained earnings at beginning of year
Less transfers to
Genera\ Fund
RETAINED EARNINGS AT END OF YEAR
Year Ended December 31
1970 1969
$185,422.02 $268,160.88
55,018.55 87,806.90
15,326.73 16,460.46
$255,767.30 $372,428.24
$ 35,398.95 $ 30,885.19
197,509.25 288,617.12
$232,908.20 $319,502.31
35,712.28 35,398.95
$197,195.92 $284,103.36
$ 58,571.38 $ 88,324.88
$ 24,731.20 $ 23,035.46
3,515.00 3,067.59
6,525.50 6,209.00
1,663.98 1,815.46
310.38 313.01
3,255.75 3,565.00
1,918.36 1,907.83
3,050.00 2,760.00
203.17
691. 26 769.70
245.01 277 .67
507.61 1'86.80
347.86 453.08
$ 46,965.08 $ 44,360.60
$ 11,606.30 $ 43,964.28
$ 2,612.50 $ 2,645.43
$ 14,218.80 $ 46, 609. 71
136,016.31 102,006.60
$150,235.11 $148,616.31
60,000.00 12,600.00
$ 90,235.11 $136,016.31
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ERNST & ERNST
FIR S T N AT ION A L BAN K B L D G.
MINNEAPOLIS, MINN. 55402
EXAMINATION COMMENTS
Village of Shorewood, Minnesota
The audited financial statements of the Village of Shorewood - Liquor Fund and
our report thereon are presented in the preceding section of this report. The
following comments relate to the details of the scope of our examination and
our review of accounting procedures and internal controls.
SCOPE OF EXAMINATION
The examination comments in the other financial information included with the
audited statement of receipts and disbursements of the various funds of the
Village of Shorewood of the same date cover the scope of our procedures in the
area of cash, cash transactions and certain other areas.
We observed the taking of the year-end physical inventory and recorded test
counts which were subsequently traced to the inventory listings. Inventory
pricing was supported on a test basis by reference to vendors' invoices.
Clerical accuracy of the year-end inventory was verified on a test basis. We
also tested the accounts payable cutoff. We tested the retail inventory control
system and observed that it is functioning properly.
We reviewed the property 'accounts and additions for the year were supported on
a test basis. The provision for depreciation for the year was reviewed and
tested.
Accounts payable at year-end were supported by direct correspondence with ven-
dors on a test basis and by sighting documentary evidence.
Amounts due to the Public Employees Retirement Association and for FICA taxes
were analyzed and adjusted to the required amounts.
Sales were reconciled to cash receipts, and other accounts were tested and
supported as deemed necessary.
We reviewed the internal controls and accounting procedures used at the village
hall, ~t the liquor store and by the public accountant who assists the Village
Clerk.
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Minneapolis, Minnesota
May 14, 1971
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