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HomeMy WebLinkAbout20132257.tiffCAFR _ 2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT * YEAR ENDED DECEMBER 31 WELD COUNTY STATE OF COLORADO ~` 1' PREPARED BY THE DEPARTMENTS OF ACCOUNTING AND FINANCE o.w LEADING WITH RESPONSIVE, INNOVATIVE & COST EFFECTIVE SCD`I'r" 2013-2257 offitorAnin rfatoR COLORADO TABLE OF CONTENTS INTRODUCTORY SECTION Table of Contents Letter of Transmittal 1 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting 11 Organization Chart 12 Principal County Officials 13 FINANCIAL SECTION Independent Auditors' Report 15 Management's Discussion and Analysis 17 Basic Financial Statements Government -Wide Financial Statements: Statement of Net Position 77 Statement of Activities 28 Governmental Fund Financial Statements: Balance Sheet 30 Reconciliation of Total Governmental Fund Balances to the Statement of Net Position 32 Statement of Revenues, Expenditures and Changes in Fund Balance 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 36 Proprietary Fund Financial Statements: Statement of Net Position - Proprietary Funds 37 Statement of Revenues, Expenses and Changes in Net Postion - Proprietary Funds 38 Statement of Cash Flows - Proprietary Funds 39 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position 40 Statement of Changes in Fiduciary Net Position 41 Notes to the Financial Statements 43 Required Supplementary Information Other Than MD&A: Required Supplementary Information Pension Trust 81 Other Post Employment Benefits 82 Modified Approach for Infrastructure Assets 83 1 Schedules of Revenues, Expenditures and Changes in Fund Balances -Actual and Budget Major Funds: General Fund 84 Public Works Fund 90 Social Services Fund 92 Human Services Fund 94 Contingent Fund 96 Supplemental Information: Combining Statement of Non -major Governmental Funds: Explanation of Funds 97 Combining Balance Sheet 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 104 Schedules of Revenues, Expenditures and Changes in Fund Balances -Actual and Budget Capital Expenditures Fund 106 Non -major Governmental Funds: Special Revenue Funds: Conservation Trust Fund 107 Public Health Fund 108 Solid Waste Fund 109 Bebee Draw Fund 110 Pioneer Community Law Enforcement Fund 111 South West Law Enforcement Fund 112 Component Units: Housing Authority 113 E-911 Authority Fund 114 Local Highway Finance Report 116 Combining Statements of Internal Service Funds: Combining Statement of Net Position - Internal Service Funds 118 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 120 Combining Statement of Cash Flows - Internal Service Funds 122 Combining Statement of Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities - Fiduciary Funds 124 11 Schedule of Revenues, Expenses and Changes in Net Position -Actual and Budget Enterprise Fund and Internal Service Funds: Enterprise Fund: Paramedic Services 125 Internal Service Funds: Motor Vehicle Fund 126 Health Insurance Fund 127 Insurance Fund 128 Phone Service Fund 129 STATISTICAL SECTION Net Position by Component 132 Changes in Net Position 134 Fund Balances of Governmental Funds 136 Changes in Fund Balances, Governmental Funds 138 Assessed and Estimated Actual Value of Property 140 Property Tax Levies - Direct and Overlapping Governments 142 Principal Taxpayers 143 Property Tax Levies and Collections 144 Direct and Overlapping Governmental Activities Debt 145 Legal Debt Margin Information 146 Private Purpose Revenue Bonds 148 Demographic and Economic Statistics 149 Principal Employers 150 Full-time Equivalent Employees by Function/Program 152 Operating Indicators by Function/Program 154 Capital Asset by Function/Program 156 Insurance in Force 158 SINGLE AUDIT Schedule of Expenditures of Federal Awards 159 Notes to Schedule of Expenditures of Federal Awards 162 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards 163 Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 165 Schedule of Findings and Questioned Costs 167 Summary Schedule of Prior Federal Audit Findings 173 iii iv DEPARTMENT OF FINANCE AND ADMINISTRATION PHONE (970) 356-4000, EXT.4218 FAX: (970) 352-0242 P.O. BOX 758 GREELEY, COLORADO 80632 June 17, 2013 Honorable Board of Commissioners County of Weld 915 10th Street Greeley, CO 80631 Dear Board Members: The Comprehensive Annual Financial Report of the County of Weld, State of Colorado for the fiscal year ended December 31, 2012, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the County. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the County. The assurance of the accuracy in the County financial report is a result of the County's internal controls. The controls have been developed to provide accurate information on an efficient and cost-effective basis. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities have been included. With the December 31, 2012 financial statements, Weld County has elected to continue a significant change in government financial reporting. The purpose of these changes, which were developed by the Governmental Accounting Standards Board (GASB), is to provide better and more complete information to the users of governmental financial statements. In addition to changes to the basic financial statements, the statements are now accompanied by an introduction, overview, and analysis, referred to as "Management's Discussion and Analysis" (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found in the Financial Section immediately following the independent auditor's report. The County provides the full range of county services contemplated by statute or charter. These include general government functions, public protection and safety, health, social services, human resource services, public improvements, road and bridge operations, planning and zoning, and general administrative services. Honorable Board of Commissioners This report includes all activities for which the Board of County Commissioners is accountable to the citizens of Weld County, financially, or by State Statute or the Weld County Home Rule Charter. All applicable funds, departments, and offices are included in these financial statements as part of the "primary government" of Weld County. In addition, there are several legally separate entities that have significant operational or financial relationships with the County. These include the Weld County Housing Authority, Weld County Retirement Plan, Beebe Draw Law Enforcement Authority, Pioneer Community Law Enforcement Authority, Southwest Weld Law Enforcement Authority, Weld County Finance Corporation, and E-911 Authority. These entities are also included in the County's financial statements. INDEPENDENT AUDIT Colorado law requires that the County's financial statements be audited by an independent certified public accountant or firm of certified public accountants licensed to practice in the State of Colorado. The county's financial statements have been audited by McGee, Hearne & Paiz, LLP a Colorado licensed Certified Public Accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for issuing an unqualified opinion that the County's financial statements for the year ended December 31, 2012, are fairly presented in conformity with GAAP. The independent auditor's report is presented in the front of the financial section of this report. The independent audit of the County's financial statements was part of a broader, federally mandated "Single Audit" in accordance with provisions of the Single Audit Act of 1984, Federal Single Audit Amendment of 1996, and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. The "Single Audit" is designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, especially as they relate to the administration of federal awards. Single audit schedules and the auditor's reports are available in the "Single Audit" section of the document. PROFILE OF WELD COUNTY Location and demographics. Weld County is located along Colorado's Front Range in the northern part of the state. Weld County covers an area of 3,999 square miles in north central Colorado. It is bordered on the north by Wyoming and Nebraska and on the south by the Denver metropolitan area. The third Honorable Board of Commissioners largest county in Colorado, Weld County has an area greater than that of Rhode Island, Delaware and the District of Columbia combined. The climate is dry and generally mild with warm summers, mild winters and a growing season of approximately 138 days. The land surface is fairly level in the east, with rolling prairies and low hills near the western border. Elevations in the county range from 4,400 to 5,000 feet. The South Platte River and its tributaries, the Cache la Poudre, Big Thompson, Little Thompson, Boulder, St. Vrain, and other smaller streams, flow into Weld County from the south and west, leaving the county on the east. There are 31 incorporated towns in Weld County. The county seat and principal city, Greeley, is located in the west central part of the county and contains almost half the county's population. Generally, most of the remaining population resides within a 20 to 30 mile radius of Greeley; the northeastern part of the county is sparsely populated. Southwest Weld County is one of the fastest growing areas in the state due to its proximity to the north Denver metro area. The county's population in 2012 was approximately 266,140 COUNTY GOVERNMENT County Services. Weld County provides the full range of services contemplated by State Statute and the Weld County Home Rule Charter. Services include: • Judicial and public safety - - consisting of the Sheriff, District Attorney, operation and maintenance of the detention center, and building inspection. • Health, employment, and social services. • Planning and zoning. • Construction, reconstruction and maintenance of streets, highways, and bridges. • Parks and recreation. • Property valuation, tax collection and distribution, and vehicle licensing. • General administrative services. County Operating Structure. Weld County became Colorado's first Home Rule County in 1976. The County is governed by a five -member Board of County Commissioners. Three Commissioners are elected by districts of relatively equal population and two Commissioners are elected at large. They serve staggered four-year terms and function as the County's policymaking body. Each Commissioner coordinates one of five functions of the County. The County is also served by four other elected officials: assessor, clerk and recorder, district attorney, and sheriff. Weld County also has a five -member, non-partisan, elected body that is charged to review all aspects of County government and to make periodic written reports to the public. The Commissioners appoint department heads to be responsible for the various day-to- day operations. Honorable Board of Commissioners Budgeting. The County Commissioners annually adopt budgets by department for all governmental and proprietary funds. Budgets are controlled by the major object categories of Personnel, Operating Costs, and Capital Outlay. Control is maintained by the three categories at the division/department level in the General Fund and at the fund level in all other funds. Supplemental appropriations are approved by the Board of County Commissioners as needed during the year to provide for those items that were unknown or unforeseen at the time the budget was originally adopted. MAJOR INITIATIVES For the Year. In 2012, the Board identified a number of significant program changes to enhance service delivery to the citizens of Weld County. The following is a summary of significant program changes and initiatives for 2012: • Implemented the third year of the new Strategic Plan approach. • Implemented a new criminal justice computer system (Spillman). • Identified technology uses to improve services and cost-effectiveness of services. • Conducted and began the implementation of the results of a Technology Assessment Study. • Completed the upgrading of the towers and county -wide communications system. • Transferred the Paramedic Services function to North Colorado Medical Center for ownership and to Banner Health for operations effective May 7, 2012. • Sheriff's Office was reorganized to realign work groups and activities to improve span of control. • Mini -bus transportation service was terminated mid -2012. • Implemented a number of cost containment and strategies to mitigate growing cost of Human Services programs. • Implemented an Adult Diversion Services program for adult offenders in Justice Services in coordination with the District Attorney's Office. • Funded a Haul Route Program (HARP) to improve county roads impacted by the energy industry due to new oil and gas drilling exploration. • The Weld Food Bank contracted directly with the state for the Supplemental Foods program, thus removing the county as the middle -man in the process. 4 Honorable Board of Commissioners • Offered both a Preferred Provider Organization (PPO) option and a High Deductible Health Plan/Health Reimbursement Account (HDHP/HRA) option to employees and dependent for health insurance coverage. • Office of Emergency Management was reorganized and moved from the Sheriff's supervision to be under the direct supervision of the Board of County Commissioners effective January 1, 2012. FACTORS AFFECTING FINANCIAL CONDITION Economic Conditions and Outlook. The U.S. economy continues to build momentum, but challenges lie ahead. Most sectors of the economy are improving, but growth is moderate as the economy works through damage done by the financial crisis and uncertainty about international economic conditions. The job market is improving, which is boosting personal income and consumption. The industrial, manufacturing, and construction industries are gradually improving, and the real estate market is starting to stabilize as the supply of homes for sale is starting to match the demand for homes. The overall outlook for the national economy is for continued growth, although the recovery is expected to be more constrained than previous recoveries. The recovery in Colorado's economy is strengthening. Recent gains in the labor market signal that the economy, which only a few months ago was feared to be nearing recession, has not only stabilized but its recovery has gained a solid foothold and is more resilient than previously thought. However, growth will remain below the long run potential, weighed down by concerns about the global economy, high levels of consumer debt, rising gasoline prices, and continuing imbalances in the real estate and credit markets. Pockets of the state have enjoyed a strong economic recovery. Employment increased at strong rates in Weld County and the southwest mountain region as a result of increased activity in the oil industry. Increasing agriculture prices have driven growth in ranch and farm income, boosting consumer spending and economic health on the eastern plains, the San Luis Valley, on the western slope, and in the northern region of the state. The Boulder area is enjoying strong growth in software publishing and economic activity in the Metro Denver and Pueblo regions is strengthening gradually. Meanwhile, the economy in the Colorado Springs region is showing only weak signs of recovery. In addition, the economy is struggling in portions of the western region as a result of slowing activity in the natural gas industry. The two-year old recovery in Colorado's labor market is gaining momentum. Colorado lost 151,600 jobs, or 6.4 percent of its job base, between the pre -recession peak in April 2008, and the cyclical low in January 2010. During the two years between then and January 2012, Colorado added 75,600 jobs. Total nonfarm employment increased 1.5 percent in 2011, after increasing 0.8 percent in 2010. The unemployment rate fell from a high of 9.0 percent in November 2010, to 7.9 percent in December 2012. Consumers in Colorado continue to increase their spending, but remain cautious. Consumers remain cautious as a result of an uncertain global economy, continued high unemployment, decreasing real wages and salaries, and rising food and gasoline prices. Colorado's housing market continues to slowly recover and is showing signs of stabilizing. Although many Honorable Board of Commissioners homeowners are still unable to sell their homes because home values are lower than their outstanding mortgages, home vacancies and foreclosures continue to place downward pressure on prices, and lending institutions continue to work through the administrative and financial aftermath of the housing crisis. Consumers are having difficulties getting home loans approved because of tight lending standards and uncertainty among banks and appraisers about home values. Although markets have begun to improve in localized areas around the state, recovery in the overall housing market is being stalled by uncertainty in the economy and slow employment growth. In summary, Colorado's recovery continues to move forward. Employment growth gained momentum and consumers increased spending. In addition, the agriculture and energy industries are expected to continue the boost in growth through the forecast period. These positive trends will be constrained, however, by the housing market, tight credit conditions, and the financial markets. Energy drilling activity has continued to boom in Weld County due to the continued high price of oil and new drilling technologies. Nationally, the price of oil has remained around $80-90 per barrel, climbing to nearly $110 per barrel during periods of the year. The activity by Andarko Petroleum within the Niobrara shale formation in the Wattenberg field continues apace. The company operated seven rigs in this formation during the year, and drilled over 160 horizontal wells in 2012, up from 40 in 2011. The recovery in the economy of the northern region of Colorado, which has been among the strongest in the state, maintained its pace through 2012. Employment is up in both major urban areas within the region and the unemployment rate dropped in the last few months of the year. Regional gains in consumer spending remain above the statewide average, with gains especially strong in Weld County. The residential construction industry remains strong in the Fort Collins -Loveland area and is holding its own in Greeley. Accelerating oil exploration activity in the Wattenberg field, as evidenced by the increased number of drilling rigs operating locally, brings further reason for economic optimism. The accelerating oil and gas exploration will also boost the assessed value for property tax revenues in Weld County in 2013 and 2014. LONG-TERM FINANCIAL PLANNING Although the financial health of Weld County government is currently excellent, it is important to look to the future issues, possible problems, and alternative solutions to these problems. Besides the traditional role of budgeting to responsibly manage available current year funding, there must be a continued emphasis of long-term planning, recognition of the cumulative effect of individual decisions, an awareness of changing realities, flexibility, citizen input in setting priorities, and a focus of goals and objectives consistent with the core services philosophy and Mission Statement. In February, 2012, staff developed, and the Board of Weld County Commissioners approved, the Strategic Investment Plan for the Future of Weld County. The purpose of th€Strategic Investment Plan for the Future of Weld County is to provide the Board of Weld County Commissioners an analysis of the optional uses of the projected property tax revenues from the new oil and gas development in Weld County. The time frame of the analysis is 2012-2016. However, it is anticipated the same property tax revenue trend will most likely continue beyond 2016, if there is no significant change in the world economy, energy industry, or government regulations. 6 Honorable Board of Commissioners In November, 2011, an announcement from Anadarko Petroleum Corporation stated that results from early drilling indicate that the company could produce the equivalent of 500 million to 1.5 billion barrels of oil, natural gas liquids, and natural gas from the Niobrara formation within the Wattenberg Field boundaries located in Weld County. Anadarko drilled over 160 horizontal wells in the area, in 2012, and could eventually drill 1,200 to 2,700 wells in the area. The production of the oil by Anadarko and other energy firms will add jobs in the county and bolster property tax and severance taxes to record levels. Potential output of 55 million barrels a year from Anadarko's 350,000 acres in the Wattenberg Field would almost triple the current production of oil in Colorado. Besides direct production from the oil and gas industry, there are anticipated other economic spin-offs which will add jobs and investments resulting in increases to the county's total assessed value. Based upon information from the Colorado Oil and Gas Association, the increased oil and gas activity will result in about 400 new wells in Weld County in the next two years. Weld County has about 40 percent of the wells in Colorado. The Colorado Oil and Gas Association indicates the industry should be steady and strong but the infrastructure is not in place for a huge 'oil boom'. The region's infrastructure is nearing capacity at more than 90 percent of its use for pipelines and refineries. Although current infrastructure will constrain the development of the Niobrara formation, there is much room for growth in Weld County; therefore, property tax revenue will increase. With the continued increase in oil and gas production in Weld County, the resulting increase in the property tax base raises some significant public policy decisions regarding how to financially manage the increased property tax base. When a tax base increases, a typical local jurisdiction may look at the obvious public policy options of spending more through expansion of services and growth of government, lowering the property tax to all taxpayers, or a combination of the two. To be fiscally responsible and consistent with Weld County's fiscally conservative nature that has resulted in a legacy of Weld County having no debt, a creative option should be developed. The creative option is developing a long term strategy of investment in the county's infrastructure, technology and innovation, staff training and development, economic development for diversification of the local economy, and establishing a fluctuation reserve to deal with the volatility of the peaks and valleys in energy prices and production. If the projected energy production figures materialize, eventually, even with the long term investment strategy with the Weld County Home Rule Charter five percent property tax limitation and TABOR limitation, lower property tax rates will result for all taxpayers in Weld County. However, until the Home Rule Charter and TABOR tax limitation are reached, an opportunity to implement the long term strategy of investment will exist. In examining the public policy options, the first is to spend more and expand government. This option is contrary to the corporate culture that has been developed within Weld County government since the passage of the Weld County Home Rule Charter in 1976. The second option of simply reducing the property tax of taxpayers is tempting, but until the tax limitations are reached, this option may be shortsighted and eliminate long term financial options that ensure long term financial viability for Weld County. Another approach is the creative option of developing a long term strategy of investment in the county's infrastructure, technology and innovation, staff training and development, economic development for diversification of the local economy, and establishing a fluctuation reserve to deal with the volatility of the peaks and valleys in energy prices and production. In analyzing Honorable Board of Commissioners this option, one needs to examine the difference between spending and investment. In our personal lives, spending is surrendering money now in order to get some good or service in return. Investing is surrendering money now with the hope of getting a financial return later on, and winding up with more money in the end. Most often when a local government wants to invest in a long-term project or capital assets the local government must incur long-term debt for short-term gains. Weld County is in the fortunate position that it has no long-term debt and, with the anticipated growth in assessed value from oil and gas production, will have a stable property tax revenue stream to dedicate to a long-term strategy of investment for the future benefit of Weld County citizens without incurring debt or raising taxes. With this approach it may well be said that just as the current and past Boards of Weld County Commissioners have left a legacy of no long-term debt, the current and future Boards of Weld County Commissioners wisely seized the opportunity to use the additional revenues from oil and gas development in Weld County to leave a legacy of having made wise investments in the future of Weld County. A long-term strategy of investment in the uy's infrastructure, technology and innovation, staff training and development, and economic development for diversification of the local economy can all have a demonstrable long-term payoff. A good county transportation system facilitates the movement of goods and services. Investment in innovation and technology will lay the foundation for new and more efficient governmental services being provided by Weld County government. Staff development ensures that the county's employees have the skills required to provide the very best service possible tothe citizens of Weld County. Investment in economic development for the diversity of the local economy will lay a solid foundation for long-term economic growth in the county and allow Weld County to be competitive in retaining and attracting quality companies and a labor force to support those companies. Weld County has to focus on investing, rather than spendingi order to ensure long-term and economic prosperity not only while the energy boom is happening, but also when it eventually ends. On the downside, employing the investment strategy will require some patience from everyone, because some of the investment in the short-term may be years away before the benefits are evident. The other challenge will be to avoid the temptation to divert away the funds intended for investment for short-term or politically popular purposes, especially in economic bad times. The best strategy for short-term downturns in the future is to make long-term investments now and consistently over time. The Strategic Investment Plan for the Future of Weld County, outlined above, would be funded over the next five years, matching the projected property tax revenues with the investments to be made in the plan. The plan presented here simply demonstrates the merits of the proposed Strategic Investment Plan and the plan's financial feasibility. The actual recommended amounts for each investment strategy will need to be refined by staff and the Commissioners not only initially, but each budget year, to reflect any change in circumstances or priorities. As the Commissioners proceed with the Strategic Investment Plan, there will be a need to develop the details of how the additional resources will be incorporated into the Public Works budget, develop an updated technology long-term plan, plan for staff development, and encourage departments to identify innovative proposals to be considered for funding. The county's public information specialist should develop a communication program for dissemination to the citizens of Weld County explaining Weld County's Strategic Investment Plan, its relationship to the future oil and gas development in the county, and the benefits which will be derived by all Weld County citizens from the plan. C) Honorable Board of Commissioners RELEVANT FINANCIAL POLICIES A major impact to the County's financial planning the last three years has been the volatility of the assessed value associated with oil and gas assessed values. Oil and gas assessed values for the 2011 budget, due to the drop in commodity prices in 2009, were down over 40 percent over the prior year. However, oil prices in 2010, stabilizing at their historical levels of over $75 per barrel, resulted in a 46 percent increase in the assessed value for oil and gas for the 2012 budget. In addition, new energy discoveries in northeastern Weld County could bode well long-term for oil and gas production in the area. While the growth in the County's assessed value and economic stimulus of the energy industry in Weld County is positive, the downside is the County has had to add $4,000,000 to the Public Works budget in both 2011 and 2012 for the Haul Route Program (HARP). HARP has been developed, in conjunction with the energy industry, to identify haul routes that need to be improved to accommodate heavy hauling traffic, address safety issues, and improve roads impacted by the oil and gas industry's heavy hauling on county roads due to the new exploration. Due to the volatility of the assessed value associated with oil and gas assessed values, and the fact that the assessed value associated with 61 and gas accounts for nearly half of the county's assessed value the Board of County Commissioners have adopted a policy to continue to increase the fund balance of the Contingency Fund to provide for a fluctuation reserve to deal with the potential wide swings in the oil and gas assessed values. At the end of 2013 the Contingency Fund's fund balance will be over $40 million or nearly 35% of the current property tax levy. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the County for its Comprehensive Annual Financial Report for the fiscal year ended December 31, 2011. This was the thirtieth year that the County has received this prestigious award. In order to be awarded a Certificate of Achievement, the County published an easily readable and efficiently organized Comprehensive Annual Financial Report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the County also received the GFOA's Award for Distinguished Budget Presentation for its 2012 annual appropriated budget for over thirty consecutive years. In order to qualify for the Distinguished Budget Presentation Award, the County's budget document was judged to be proficient in several categories including policy documentation, financial planning, and organization. 9 Honorable Board of Commissioners Financial reports are valuable in that they provide a permanent historical record of a governmental agency's operation to the management and the general public. It is our belief that this is a comprehensive report of the 2012 financial transactions under our control and that the following statements present an accurate, informative record of the financial activities of the County of Weld and its financial condition at December 31, 2012. The preparation of this report could not be accomplished without the efficient and dedicated services of the entire staff of the Accounting/Finance Department. I should like to express my appreciation to all members of the department who assisted and contributed to its preparation. I would also like to thank the members of the Board of County Commissioners for their interest and support in planning and conducting financial operations of the County in a responsible and progressive manner. Respectfully submitted, \INC\ISt‘utix,ii.ASta• Monica Daniels -Mika, Director Finance and Administration 10 Certificate of Achievement for Excellence in Financial Reporting Presented to County of Weld Colorado For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2011 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President AleAst, Executive Director 11 z w z w ce 0 C9 ce w J W 0 x z 0 U D J W z LJJ N H U H Z O UJ O WM ft Cu" VJ Corrections, Law Enforcement Animal Control, Forensic Lab Task Force, Code Enforcement Office of Emergency Management J C O Q C 0 (5 Elected Members) tJ (5 Elected Members) K I Ct a a) 0 a) U .a) J 7- Commissioner Coordinator i _ K O 03 -C a) E N t _ co Q U 0-� 0 Environment L O O E 0 O U J O_ ro co C E o U U ( co L 0 a U a) 0 U L O p > U 0L0 O W 2 J Social Services I O O L.. 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Lefebvre, Jr. 13 14 FINANCIAL SECTION r -x, 1 Ile COLORADO 11/4\41p McGee, Hearne & Paiz, LLP Certified Public Accountants and Consultants 314 West 18th Street, Cheyenne, Wyoming 82001-4404 INDEPENDENT AUDITOR'S REPORT Board of County Commissioners Weld County, Colorado Greeley, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate discretely presented component units and remaining fund information of Weld County, Colorado (the "County") as of and for the year ended December 31, 2012, and the related notes to the fmancial statements, which collectively comprise the County's basic fmancial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of Weld County Housing Authority (the "Authority"), whose assets totaled $2,557,148 and whose revenues totaled $2,552,476 of the aggregate discretely presented component units and remaining fund information. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Authority, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinion In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate discretely presented component units and remaining fund information of the County as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows there of for the year then ended in accordance with accounting principles generally accepted in the United States of America. 15 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 17 through 26, the schedules of funding progress and employer contributions, the condition assessments of infrastructure, and the budgetary comparison information on pages 81 through 96 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that comprise the County's basic financial statements. The accompanying supplementary information (the combining and individual nonmajor fund financial statements, nonmajor fund budgetary comparison information, Local Highway Finance Report, and schedule of expenditures of Federal awards, as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations), introductory section and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 17, 2013, on our consideration of the County's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance. Att„7-11at,nt d RA:1,)(7p Cheyenne, Wyoming June 17, 2013 16 MANAGEMENT'S DISCUSSION AND ANALYSIS This section of the report provides readers with a narrative overview and analysis of the financial activities of Weld County for the fiscal year ended December 31, 2012. We encourage readers to consider the information presented here in conjunction with the letter of transmittal and basic financial statements to enhance their understanding of the County's financial performance. FINANCIAL HIGHLIGHTS • Weld County's assets exceeded liabilities by $368.7 million at the end of 2012. Of this amount, $50.6 million may be used to meet the government's ongoing obligations to citizens and creditors. The remaining $318.1 million is invested in capital assets or restricted by law. • The County's General Fund balance was $21.1 million as of December 31, 2012. Of this amount, $1.2 million for non -spendable assets, $6.9 million is restricted; $2.3 million committed for economic development; $.6 million for encumbrances. The remaining $10.1 is available to meet the ongoing obligation to citizens and creditors. • The 2012 General Fund of balance of $21.1 is 27.8% of 2012 General Fund operating expenditures plus net operating transfers. The County Commissioners' goal is to keep fund balance at no less than 5%. The Board has not budgeted any expenditures from the fund balance in 2013. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County's basic financial statements. The basic financial statements contain three components: 1) government - wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. In addition to the basic statements, this report also contains other supplementary information including combining statements for non -major funds, a statistical section, and information regarding federal grant programs. Government -wide Financial Statements Thegovernment-wide financial statementare designed to provide readers with a broad overview of the County's finances in a manner similar to a private sector business. The statement of net position presents information on all of the County's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the remaining difference reported as net position.Over time, increases or decreases in net position may serve as a useful indicator of whether the County's financial position is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the fiscal year. All changes in net position 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 the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). Both of the government -wide financial statements slfinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities)from other functions that are intended to recover all or a significant portion of their costs through user fees and charge%business-type activities). Weld County's governmental activities include general government, public safety, roads andiai'a'es, auxiliary, culture and recreation, and health and human services. The County has one business type activity — operation of the paramedic services. The government -wide financial statements include nobnly Weld County itself (known as the primary government), but also legally separate entities which have a significant operational or financial relationship with the County. These entities, known as blended component units, include local improvement districts, Finance Corporation, Weld County Retirement Plan, Pioneer Law Enforcement Authority, Southwest Weld Law Enforcement Authority and Beebe Draw Law Enforcement Authority. Discretely presented component units are Housing Authority and E-911 Emergency. More information on the functions of these entities can be found in Note 1 to the financial statements. 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. Weld County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of Weld County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activitiesin the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. 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 the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Weld County maintains eleven individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Public Works Fund, Social Services Fund, Human Services Fund, Capital Expenditures, and Contingent Fund, all of which are considered to be major funds. Data from the other five funds are combined into a single, aggregated presentation. Individual fund data for each of these non - major funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 30 through 36 of this report. 1` Proprietary funds. Weld County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. Weld County has one enterprise fund, the Paramedic Services Fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the County's various functions. Weld County uses internal service funds to account for its fleet maintenance, phone services, Weld Finance Corporation, and self- insurance activities. Because these services predominantly benefit governmental rather than business -type functions, they have been mostly included within governmental activities in the government -wide financial statements. Proprietary funds provide the same typdnftfrmation as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Paramedic Services Fund, which is considered to be a major fund of the County. The remaining proprietary funds, all of which are internal service funds, are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for each of these non -major funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 37 through 39 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not included in the government -wide financial statements because the resources of these funds are not available to support Weld County's own operations. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 40 through 41 Budgetary Comparisons. Weld County adopts an annual appropriated budget for all of its funds. A budgetary comparison statement has been provided for all major funds on pages 83 to 94 of this report. Budget to actual comparisons for each of the non -major funds are provided in other schedules elsewhere in this report. Notes to the 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. The notes to the financial statements can be found on pages 43 through 80 of this report. Other information. The combining statements referred to earlier in connection with non -major governmental funds and internal service funds are presented following the notes to the financial statements and can be found on pages 102 through 112 and 118 through 129 respectively. COUNTY -WIDE FINANCIAL ANALYSIS Net Position. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of December 31, 2012, assets and deferred outflows exceeded liabilities and deferred inflows by $368.7 million. The following table provides a summary of the County's governmental and business -type net assets for 2011 and 2012. 19 Table 1 Net Position (in Millions) Assets Current and other assets Capital assets Total assets Liabilities Current and other liabilities Long-term liabilities Total liabilities Net Position Invested in capital assets Restricted Unrestricted Total net position Governmental Activities Business -type Activities Total 2011 $204.18 252.36 2012 2011 2012 2011 2012 $240.45 $3.87 $.00 $208.05 $240.45 260.63 1.52 .00 253.88 260.63 $456.54 $501.08 $5.39 $.00 $461.93 $501.08 $105.81 $123.97 $.34 $.00 $106.15 $123.97 8.14 8.38 .00 .00 8.14 8.38 $113.95 $132.35 $.34 $.00 $114.29 $132.35 $252.36 $260.63 $1.52 $.00 $253.88 $260.63 16.10 57.47 .00 .00 16.10 57.47 74.13 50.63 3.53 .00 77.66 50.63 $342.59 $368.73 $5.05 $.00 $347.64 $368.73 A portion of Weld County's net position (13.7%) represents unrestricted net position of $50.63 million, which may be used to meet the County's ongoing obligations to citizens and creditors. Another significant portion of the County's net position (70.7%) reflects its investment in capital assets. These assets include land, buildings, machinery, equipment and infrastructure. These capital assets are used to provide services to citizens; consequently, they are not available for future spending. Although the investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional $57.47 million of the County's net position (15.6%) represents resources that are subject to external restrictions on how they may be used. Included in this category is the TABOR emergency reserve of $6.0 million, $4.73 million in reserves for insurance claims, $6.19 million for health, economic and social assistance programs, and $40.54 million for road and bridge maintenance fund as required by state law. At the end of 2012 Weld County had positive balances in all three categories of net position. Changes in Net Position Governmental and Business -type activities increased the County's net position by $21.09 million in 2012. The following table indicates the changes in net position for governmental and business -type activities in 2011 and 2012. 20 Changes in Net Position (in Millions) Revenues Program revenues: Charges for services Operating grants and contributions General revenues: Property taxes Other taxes Other revenues Total revenues Expenses General government Public safety Streets and highways Culture and recreation Health & Welfare Economic Assist Paramedic services Total expenses Increase (decrease) in net position before Transfers Transfers Increase (decrease) in net position Net Position Beginning Net Position Ending Governmental Business -type Total Activities Activities 2011 2012 2011 2012 2011 2012 $41.49 $45.40 $6.29 $1.95 $47.78 $47.35 $24.03 23.82 .22 0.00 24.25 23.82 76.81 88.24 0.00 7.54 9.71 0.00 76.81 0.00 0.00 88.24 7.54 9.71 13.28 16.65 0.00 0.00 13.28 16.65 $163.15 $183.82 $6.51 $1.95 $169.66 $185.77 $31.93 42.61 37.52 1.12 35.88 8.12 0 $34.79 44.26 37.22 1.29 36.97 7.30 0.00 $0.00 0.00 0.00 0.00 0.00 0.00 5.96 $0.00 0.00 0.00 0.00 0.00 0.00 2.85 $31.93 42.61 37.52 1.12 35.88 8.12 5.96 $34.79 44.26 37.22 1.29 36.97 7.30 2.85 $157.18 $161.83 $5.96 $2.85 $163.14 $164.68 5.97 21.99 .55 (0.90) 6.52 21.09 0.00 4.15 0.00 (4.15) 0.00 0.00 5.97 26.14 .55 (5.05) 6.52 21.09 336.62 342.59 4.50 5.05 341.12 347.64 $342.59 $368.73 $5.05 $0.00 $347.64 $368.73 Governmental Activities. Governmental activities increased Weld County's net position by $26.14 million in 2012. Key elements of this increase are as follows: • Total revenues were up $20.67 million, 12.67% from the prior year, primarily due to increase in property taxes ($11.43 million) and other taxes ($2.17 million), other general revenue ($3.37 million) and charges for services ($3.91 million). • Transfers were up $4.15 million as the remaining assets of the Weld County Paramedic services were transferred when operation of the Paramedics Services was transferred to Banner Health on May 7, 2012. • Expenses totaled $161.83 million. This represents a 2.95% increase, with increases in general government ($2.86 million), public safety ($1.65 million) and health and welfare ($1.09 million) while expenditures decreased in streets and highways ($0.30 million) and economic assistance ($0.82 million). 21 Business -Type Activities. The County's only business -type activity, Paramedic Services, decreased $5.05 million in 2012 as the operation of the paramedic services was transferred to Banner Health on May, 7 2012 and remaining assets were transferred to the General Fund. FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS As noted earlier, Weld County uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds Overview. The focus of County governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of 2012, the combined ending fund balance of County governmental funds was $108.87 million. Of this amount the approximately $2.24 million represents an investment in non -spendable items ($1.15 million inventory, $.40 million long term receivable and $.69 million in prepaid expenses). Another $47.24 million of fund balance is restricted use for emergencies ($6 million) public works ($32.72 million) health, welfare and economic assistance ($7.66 million), and other programs ($.67 million). Fund balance committed to economic development ($2.31 million), capital projects ($17.32 million), contingencies ($28.01 million) and environmental conservation ($1.01 million) is $48.65 million. Another $.62 million is assigned to budget appropriations and $10.12 million is unassigned to continue providing services to the general public. The County has six major governmental funds. These are 1) General Fund; 2) Public Works Fund; 3) Social Services Fund; 4) Human Services Fund; 5) the Contingent Fund; 6) Capital Expenditures Fund. 1. General Fund. This is the primary operating fund of the Weld County Government. It accounts for many of the County's core services, such as law enforcement, planning, and elections. The general fund balance was $21.13 million as of December 31, 2012, a small increase over the $21.11 fund balance as of December 31, 2011. Revenues in the General fund decreased with the loss of oil and gas lease revenue being reassigned to the public works fund, offset by increases in property taxes, licenses and permits and fees. General fund expenditures were up in 2012 in the area of public safety and net transfers out to other funds dropped in 2012. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 13.41% of total 2012 expenditures, while total fund balance is 26.60% of the same amount. 2. Public Works Fund. The Public Works Fund is also state mandated. The fund records costs related to County road and bridge construction and maintenance. The Public Works Fund had $33.72 million in fund balance at the end of 2012. This amount was $3.5 million more than the previous year. Revenues in the Public Works fund were up 2012 with a major increase from the reassignment of oil and gas lease revenue to the fund the cost of the haul route program (HARP), and an increase in property revenue. 3. Social Services Fund. The Social Services Fund is mandated by State Statute. This fund accounts for the local share of many Federal and State public welfare programs. The fund carried a $5.02 million balance at the end of 2012 up $1.19 from its balance in 2011 due to an increased state allocation for child welfare programs. 4. Human Services Fund. The Human Services Fund accounts for various Federal and State human services grants. Primary funding agencies are DOL, HHS, and CSA. 5. Contingent Fund. The Contingent Fund records any property tax revenue levied by the Board of County Commissioners to cover reasonable unforeseen expenditures. The fund balance increased by $7.98 million in 2012. 6. Capital Expenditure Fund. The Capital Expenditure Fund accounts for the construction of major capital facilities. These are the construction of graders sheds, back-up dispatch center, and CNG fueling stations, upgrade of communications towers, and the lining of gravel pits for water storage. Proprietary Funds Overview The County's proprietary fund statements provide the same of information found in the government -wide statements, but in more detail. The County has one enterprise -type fund, The Paramedic Services Fund. The operation and ownership of Weld County Paramedic Services transferred to North Colorado Medical Center and Banner Health on May 7, 2012. With the transfer of operation there was total decrease of the $5.05 million of net position from 2011 in 2012. Weld County has five internal service funds. Information on these funds is aggregated in the Proprietary Fund financial statements. GENERAL FUND BUDGETARY HIGHLIGHTS Comparison of Total Fund Balances as of December 31, 2011 and 2012 $40 $35 $30 $25 $20 $15 $10 $5 $- I General Fund Public Works Social Services Human Contingent Capital Other Govt. Services Fund Projects Funds 2011 2012 23 The County's budget is prepared according to Colorado statutes. The most significant budgeted fund is the General Fund. In December of 2011, the Board of County Commissioners appropriated $79.27 million for general fund expenditures and other financing uses for 2012. Table 3 Revenue and other financing sources Expenditures and other financing uses 2012 General Fund Budget (in Millions) Original Budget Amendments $ 79.07 $ 6.18 Final Budget Actual $ 85.25 $ 86.39 $ 79.27 $ 10.75 $ 90.02 $ 86.38 During 2012 mid -year budget amendments included: • $1.1 million for the engineering design work for WCR 49 • $1.0 million transferred to Retirement Fund to reimburse for past administrative expenses • $1.1 million transferred to Motor Pool Fund for additional equipment • $3.35million transferred to Capital Expenditure Fund for construction of the back-up dispatch center, crime lab, lining of gravel pits, and special projects • 1.8 million for communications equipment, computer equipment, and software • 1.6 million for unanticipated grants • Supplemental appropriations were made to various departments for salary and benefit reallocations. The increase was possible because citees fund balance, various departments under spending their budgets, and additional unanticipated revenues. Those revenues include building inspection fees from oil and gas we($51.2 million), Clerk and Recorder fees from vehicle registration ($0.75 million), and transfer of funds from the close out of the Paramedic Services Fund ($4.15 million. 24 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. Weld County's investment in capital assets for its governmental and business type activities as of December 31, 2012 totals $260.63 million (net of accumulated depreciation). This investment includes all land, buildings, machinery, equipment, intangible assets and infrastructure. Total capital assets increased 3.3% in the current fiscal year. Major capital asset events during the current fiscal year include the following: • Road construction or major improvements totaling $15.51 million. • Lining of gravel pits for water storage $1.4 million • Upgrade of communications towers $2.3 million • Construction of a back-up dispatch center $0.8 million • New grader sheds $0.5 million • Construction of CNG fueling stations $0.4 million The County implemented the "depreciation method" under GASB 34 for its road and bridge infrastructure assets, except for the gravel roads, where the "modified approach" was used. The County's policy is to maintain gravel roads at a condition of fair or better. This level of condition is being maintained consistently on over 97% of miles of road. Additional information on the County's capital assets can be found in Note 6 of this report. Construction commitments are discussed in Note 11. Long-term Debt. At December 31, 2012, Weld County had no outstanding long-term debt or debt from Certificates of Participation (COP). The last COP was paid off early on August 1, 2007. The Weld County Home Rule Charter provides for a general obligation debt limit of 3% of assessed valuation. The county had a general obligation debt capacity of $195.4 million in 2012. The county currently has no debt subject to the limitation. No new debt was issued in 2012. Additional information on Weld County's debt can be found in Note 8. Other Matters. The following factors are expected to have a significant effect on the County's financial position or results of operations and were taken into account in developing the 2013 budget. • Implementation of the Strategic Investment Plan for the Future of Weld County. • Fund innovation and technology projects identified. • Fund the oil and gas revenue fluctuation reserve in the Contingency Fund. • Implementation recommendations from the Technology Assessment Study. • Complete the upgrade of the towers and county -wide communication system. • The Weld County Regional Communications Center (WCRCC) will move to a new organizational structure with Weld County operating the WCRCC and dispatching all public safety agencies in the county, except City of Greeley Police and Fire. • Implement radio replacement program in capital improvement plan. • Implement a number of cost containment and strategies to mitigate growing cost of Human Services programs. • Add two additional Planner II positions to accommodate new development. • Fund a Haul Route Program (HARP) to improve county roads impacted by the energy industry due to new oil and gas drilling exploration. • Begin Phase I of three phases of WCR 49 improvements. • Fund current and past administrative costs of the Weld County Retirement Plan. • Open new Regional Crime Lab. • Accommodate additional funding from the state Child Welfare allocation formula. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of Weld County's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this or for additional financial information should be addressed to the Director of Finance and Administration, 1150 O Street, Greeley, CO 80631. Request for additional information regarding the Housing Authority should be addressed to Tom Teixeira, Executive Director, Weld Housing Authority, 903 6th Street, Greeley, CO 80631. 26 BASIC FINANCIAL hatio STATEMENTS COUNTY OF WELD STATE OF COLORADO Statement of Net Position December 31, 2012 ASSETS Cash and investments Property taxes receivable Receivables (net of allowance for uncollectibles) Due from other governments Internal balance Inventories Other assets Net other post employment benefits asset Restricted assets: Cash and cash equivalents Capital Assets not depreciated Capital Assets - net of accumulated depreciation Total assets LIABILITIES Accounts payable and other current liabilities Accrued liabilities Due to other governments Unearned revenue Other liabilities Long-term liabilities: Due within one year: Compensated absences Due in more than one year: Compensated absences Net Pension Obligation Total liabilities NET POSITION Invested in capital assets Restricted for: Programs Emergencies Claims Other purposes Unrestricted Total net position Primary Government Governmental Business -type Activities Activities $ 122,662,335 $ 109,655,527 3,383,599 2,068,971 1,251,711 742,415 299,725 389,200 27,462,875 233,168,012 501,084,370 4,016,425 7,329,853 30,643 112,410,353 2,294 187,943 3,109,022 5,265,873 132,352,406 260,630,887 Total Component Units Housing E-911 Authority Authority - $ 122,662,335 $ 1,657,027 $ 3,060,058 6,197,551 6,000,000 4,734,409 40,542,676 50,626,441 $ 368,731,964 $ See accompanying notes to the basic financial statements 109,655,527 3,383,599 2,068,971 1,251,711 742,415 299,725 389,200 27,462,875 233,168,012 501,084,370 4,016,425 7,329,853 30,643 112,410,353 2,294 187,943 3,109,022 5,265,873 132,352,406 260,630,887 6,197,551 6,000,000 4,734,409 40,542,676 50,626,441 665,984 2,346 222,649 120,775 9,142 2,539,615 2,557,148 5,720,448 23,617 38,323 19,162 81,102 479,855 479,855 9,142 2,539,615 184,326 2,282,578 2,700,978 - $ 368,731,964 $ 2,476,046 $ 5,240,593 27 COUNTY OF WELD STATE OF COLORADO Statement of Activities Year Ended December 31, 2012 Program Revenues Primary government: Governmental activities: General government Public safety Streets and highways Health and welfare Culture and recreation Economic assistance Total governmental activities Business -type activities: Paramedic service Total primary government Component units: Housing Authority E-911 Authority Total component units Expenses Operating Capital Charges for Grants and Grants and Services Contributions Contributions $ 34,789,583 $ 11,580,340 $ 1,108,609 $ 44,263,029 7,406,430 2,712,046 37,220,963 3,439,523 10,051,369 36,968,434 21,865,091 2,880,575 1,290,618 725,868 411,891 7,302,875 381,199 6,656,527 161,835,502 45,398,451 23,821,017 2,846,859 1,954,205 $ 164,682,361 $ 47,352,656 $ 23,821,017 $ $ 2,658,523 $ 99,033 $ 2,443,881 $ 2,132,837 2,270,819 $ 4,791,360 $ 2,369,852 $ 2,443,881 $ GENERAL REVENUES Taxes: Property taxes Specific Ownership Severance/Tabacco Royalties Miscellaneous Unrestricted investment earnings Transfers Total General Revenues and Transfers Change in net position Net position - beginning Net position - ending See accompanying notes to the basic financial statements �ti Net (Expenses) Revenues and Changes in Net Position Primary Government Governmental Activities Business -type Activities $ (22,100,634) $ (34,144,553) (23,730,071) (12,222,768) (152,859) (265,149) (92,616,034) S O Total Component Units Housing E-911 Authority Authority ▪ $ (22,100,634) $ (34,144,553) (23,730,071) (12,222,768) (152,859) (265,149) (92,616,034) (892,654) (892,654) $ (92,616,034) $ S O $ 88,229,134 7,302,111 2,410,032 12,083,892 3,231,877 1,341,489 4,157,638 118,756,173 26,140,139 342,591,825 O W O S dio as as (892,654) $ (93,508,688) $ S O S O so (4,157,638) (4,157,638) (5,050,292) 5,050,292 $ 368,731,964 $ dio so • $ (115,609) $ 88,229,134 7,302,111 2,410,032 12,083,892 3,231,877 1,341,489 114,598,535 21,089,847 347,642,117 $ 368,731,964 137,982 (115,609) $ 137,982 9,562 9,562 (106,047) 2,582,093 lot 20,087 20,087 158,069 5,082,524 $ 2,476,046 $ 5,240,593 COUNTY OF WELD STATE OF COLORADO Governmental Funds Balance Sheet December 31, 2012 ASSETS Cash and investments Receivables (net of allowance for uncollectibles): Current property taxes Delinquent property taxes Accounts Special assessment Due from other County funds Due from other governments Inventories Other assets Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued liabilities Other liabilities Due to other County funds Due to other governments Deferred revenue Unexpended grant revenue Total Liabilities Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances General Fund Public Works Social Services Fund Fund $ 23,882,566 $ 32,536,270 72,195,449 127,206 1,319,440 365,612 34,940 145,170 670,489 9,138,417 15,964 894,003 36,666 1,003,152 3,138 $ 98,740,872 $ 43,627,610 2,207,474 1,800,367 373,976 72,551,645 679,335 77,612,797 1,216,973 6,863,582 2,305,309 615,428 10,126,783 345,582 345,763 169 9,208,378 $ 4,449,661 6,598,158 22,003 322,562 1,401,804 9,356 $12,803,544 218,773 736,587 2,294 161,591 30,643 6,638,281 9,899,892 7,788,169 1,006,290 32, 721,428 9,356 5,006,019 21,128,075 33,727,718 5,015,375 $ 98,740,872 $ 43,627,610 $12,803,544 See accompanying notes to the basic financial statements 30 Capital Other Total Human Services Contingent Expenditures Governmental Governmental Fund Fund Fund Funds Funds $ 867,057 $ 28,046,177 $ 17,240,826 $ 2,435,285 $109,457,842 5,194 161,591 632,227 4,079 12,180,213 7,308,128 - 107,420,365 17,484 16,388 - 199,045 728,353 3,269,552 36,666 231,166 8,955 767,324 - - - 2,068,971 - - - 1,148, 322 597 687,659 $ 1,670,148 $ 40,243,874 $ 24,796,508 $ 3,173,190 $225,055,746 121,747 - 128,810 113,471 3,135,857 170,491 - - 231,056 3,284,264 2,294 20 - 9,990 - 545,746 30,643 12,225,238 7,341,041 104,885 108,069,468 435,383 - - - 1,114,718 727,641 12,225,238 4,079 938,428 7,479,841 449,412 116,182,990 597 2,237,295 1,711,181 47,240,638 28,018,636 17,316,667 1,012,000 48,652,612 - - - 615,428 - - - 10,126,783 942,507 28,018,636 17,316,667 2,723,778 108,872,756 $ 1,670,148 $ 40,243,874 $ 24,796,508 $ 3,173,190 $225,055,746 COUNTY OF WELD STATE OF COLORADO Reconciliation of Total Governmental Fund Balances To Statement of Net Position December 31, 2012 Total governmental fund balances $108,872,756 Amounts reported for governmental activities in the statement of activities are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds 242,345,148 Long-term liabilities, including compensated absences, are not due and payable in the current period and therefore are not reported in the funds Compensated Absences Net Pension Obligation Net Other Post Employment Benefits Asset Internal service funds are used by mangement to charge the costs of insurance and other services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position (3,296,965) (5,265,873) 299,725 25,777,173 Net position of governmental activities $368,731,964 See accompanying notes to the basic financial statements 33 COUNTY OF WELD STATE OF COLORADO Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended December 31, 2012 REVENUES: Taxes Licenses and permits Intergovernmental Fines and forfeitures Charges for services Miscellaneous Fees Total Revenues EXPENDITURES: Current: General government Public Safety Public Works Public health and welfare Culture and recreation Economic assistance Capital outlay Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers - in Transfers - out Total Other Financing Sources (Uses) Net Changes in Fund Balance Fund Balances at Beginning of Year Fund Balance at End of Year General Fund $ 56,182, 725 2,487,367 4,979,110 311,216 4,245,705 5,128, 748 9,429,973 82,764,844 31, 686, 325 43,232,011 2,469,046 331,905 912,223 2,000 794,443 79,427,953 3,336,891 3,624,699 6,948,351 (3,323,652) 13,239 21,114,836 Public Works Social Services Fund Fund $ 16,567,249 $ 9,972,523 480,728 10,485,934 20,364,388 737,516 110 13,291,446 857,958 42,420,831 30,337,021 35,374,807 10,830 28,724,522 413,651 35,385,637 29,138,173 7,035,194 3,500,000 (3,500,000) 3,535,194 30,192,524 1,198, 848 1,198, 848 3,816,527 $ 21,128,075 $ 33,727,718 $ 5,015,375 See accompanying notes to the basic financial statements 34 Human Services Fund $ 6,656,527 234,317 146,882 7,037,726 7,398,591 50,180 7,448,771 Contingent Fund $ 7,977,517 7,977,517 (411,045) 7,977,517 12,351 12,351 (398,694) 7,977,517 1,341,201 Capital Expenditures Fund $ 7,187, 740 136,152 104,250 7,428,142 91,193 6,139,220 6,230,413 1,197,729 4,550,000 4,550,000 5,747,729 20,041,119 11,568,938 $ 942,507 $ 28,018,636 $ 17,316,667 Other Governmental Funds Total Governmental Funds $ 16,191 $ 97,903,945 - 2,968,095 3,115,999 45,601,958 7,875 319,091 2,564,107 7,781,755 265,747 18, 968, 975 10, 392,181 5,969,919 183, 936, 000 96,118 7,795,976 379,484 181,135 31,777,518 43,328,129 37,843,853 36,852,403 1,291,707 7,400,591 7,589,459 8,452,713 166,083,660 (2,482,794) 17,852,340 3,007,909 592,909 2,415,000 11,194, 959 11, 041, 260 153,699 (67,794) 18,006,039 2,791,572 90,866,717 $ 2,723,778 $ 108,872,756 COUNTY OF WELD STATE OF COLORADO Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31, 2012 Net changes in fund balances - total governmental funds $ 18,006,039 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period. Capital asset additions Depreciation expense Excess of capital outlay over depreciation 24,138,295 (19,453,708) 4,684,587 Net effect of various transactions involving capital assets (i.e. sales, disposals) is a decrease to net position (759,563) Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Compensated absences Net Pension Obligation Net Other Post Employment Benefits Obligation (26,605) (157,164) (1,385,910) Transfer of Proprietary Fund Fixed Assets 303,081 Internal service funds are used by mangement to charge the costs of certain activities, such as insurance, telecommunications and fleet services, to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities. Internal services used by Enterprise Funds 5,175, 589 300,085 Change in net position of governmental activities $ 26,140,139 See accompanying notes to the basic financial statements 36 COUNTY OF WELD STATE OF COLORADO Statement of Net Position Proprietary Funds December 31, 2012 ASSETS Cash and cash equivalents Property taxes receivable Receivables (net of allowance for uncollectibles): Accounts Due from other County funds Inventory Other assets Total Current Assets Capital Assets: Improvements other than buildings Construction in Progresss Buildings Machinery and equipment Accumulated depreciation Total Capital Assets Total Assets LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable Accrued liabilities Due to other County funds Deferred revenue Total Current Liabilities Total Liabilities Net Position Invested in capital assets Restricted for: Insurance Claims Unrestricted Total net position Business -type Activity Paramedic Enterprise Fund Governmental Activities Internal Service Funds $ 13,593,693 2,036,117 77,381 9,990 103,389 54,756 15,875,326 1,058,025 166,383 1,954,377 37,166,579 (22,059,625) 18,285,739 34,161,065 880,568 4,045,589 231,568 3,226,167 8,383,892 8,383,892 18,285,739 3,592,574 3,898,860 $ 25, 777,173 See accompanying notes to the basic financial statements 37 COUNTY OF WELD STATE OF COLORADO Statement of Revenue, Expenses and Changes in Net Position Proprietary Funds For the fiscal year ended December 31, 2012 Operating revenues: Contributions Charges for services Total operating revenues Operating expenses: Personnel services Supplies Purchased services Insurance and bonds Depreciation Other Claims Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Taxes Miscellaneous Interest income Fees Federal grant Gain (loss) on disposition of assets Judgements and damages Total nonoperating revenues (expenses) Income (loss) before contributions or transfers Capital contributions Transfers - in Transfers - out Changes in net position Total net position beginning of year Total net position at end of year Some amounts reported for business -type activities in the statement of activities are different because the net revenue (expense) of certain internal service funds is reported with business -type activities. Change in net position of business -type activities 1,791,473 1,791,473 1,755,536 136,624 542,639 176,959 8,394 2,620,152 (828,679) 157,505 5,227 (544,561) (381,829) (1,210,508) 3,539,699 Business -type Activity Paramedic Enterprise Fund Governmental Activities Internal Service Funds - $ 13,114,761 9,711,968 22,826,729 174,732 2,824,312 5,564,581 444,981 3,152,619 120,409 11,888,128 24,169,762 (1,343,033) 1,744,468 50 33,143 788,001 403,442 73,401 3,042,505 1,699,472 90,117 3,386,000 (4,750,207) 5,175,589 4,750,207 20,601,584 - $ 25,777,173 (300,085) $ (5,050,292) See accompanying notes to the basic financial statements COUNTY OF WELD STATE OF COLORADO Statement of Cash Flows Proprietary Funds For the fiscal year ended December 31, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers Cash flows from internal customers Cash payments to external suppliers for goods and services Cash payments to internal suppliers for goods and services Cash payments to employees for services Judgements/damages/losses Miscellaneous revenues Net cash provided by operating activities CASHFLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes Transfers/Advances Grants Other Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Proceeds from sale of capital assets Net cash provided (used) for capital and related Financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Judgements/damages/losses Miscellaneous revenue Change in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in due from other funds (Increase) decrease in inventories (Increase) decrease in other assets Increase in accounts payable Increase in accrued liabilities Increase in other liabilities Increase in deferred revenue Total adjustments Net cash provided by operating activities Noncash investing, capital, and financing activities: Contributions of capital assets from (to) government Loss on Disposal of Asset See Accompanying notes to the basic financial statements Business -type Activity Enterprise Fund Paramedic Services Governmental Activites Internal Service Funds 3,529,054 (514,710) (324,605) (2,028,505) 661,234 (2,937,728) 162,732 (2,774,996) 200,657 200,657 406,651 22,379,561 (19,847,513) (282,417) (171,387) 73,401 50 2,558,346 1,741,129 3,386,000 788,001 5,915,130 (7,149,532) 452,877 (6,696,655) 35,937 (1,913,105) 1,812,758 1,913,105 11,780,935 (828,679) 176,959 1,648,503 5,953 (33,531) (307,971) 1,489,913 661,234 544,561 (1,343,033) 3,152,619 73,401 50 (302,913) 119,949 (23,208) 580,959 163,640 (384,837) 94,440 427,279 3,901,379 2,558,346 90,117 4,877 COUNTY OF WELD STATE OF COLORADO Statement of Fiduciary Net Position Fiduciary Funds December 31, 2012 Weld County Other Post Agency Weld County Employment Funds Retirement Plan Benefits ASSETS Cash and investments $6,385,129 $ - $ Accounts Receivables (net of allowances for uncollectables): 18,071 91 Restricted assets Cash - 2,351,661 2,808,033 Investments - 136,165,322 Total assets $6,403,200 $ 138,517,074 $ 2,808,033 LIABILITIES AND NET POSITION Accounts payable Due to other governments Total Liabilities NET POSITION Held in trust for pension benefits and other purposes $ 173,011 $ 6,230,189 36,422 $ $6,403,200 $ 36,422 $ See accompanying notes to the basic financial statements $ 138,480,652 $ 2,808,033 COUNTY OF WELD STATE OF COLORADO Statement of Changes in Fiduciary Net Position Fiduciary Funds For the fiscal year ended December 31, 2012 Weld County Other Post Additions: Employer contributions Employee contributions Earnings on investments, net of investment related expenses of $238,677 and $0 Net depreciation in fair market value of investments Reimbursment of Prior Years Expenditures Total Additions Deductions: Actuarial fees Benefit payments Supplies Total Deductions Change in net assets Net position - beginning Net position - ending See accompanying notes to the basic financial statements Retirement Plan Employment Benefits $ 5,970,039 $ 579,676 5,970,038 134,289 11,567,340 2,613,876 1,000,000 27,121,293 45,706 12,291,701 9,946 12,347,353 14,773,940 123,706,712 23,156 737,121 713,965 713,965 23,156 2,784,877 $138,480,652 $ 2,808,033 NOTES TO THE FINANCIAL STATEMENTS 42 COUNTY OF VELD STATE OF COLORADO Year Ended Decenber 31, 2012 Note 1 - Suntrury of Significant Accounting Policies: The County of Weld, Colorado ("County") was established in 1861, and on January 1, 1976, became a hone rule county under the pr ovi s i ons of Section 30-35-501, CRS, 1973. The County oper at es under an elected c omri s s i oner form of government. The County provi des the ful 1 range of services contemplated by statute or charter. These include general government funct i ons, public protection and safety, health, social services, human resource services, public improvements, road and bridge oper at i ons, planning and zoning, and general admi ni strati ve services . The financial stat ement s of the County have been prepared in conformity with generally accepted accounting principles ( GAAP) as applied t o government al units. The fol l owi ng sunintry of si gni fi cant accounting policies is presented to assist the reader in evaluating the Count y' s f i nanci al statements. A. Reporting Entity: W1 d County is a pol i t i cal subdivision of the State of Col or ado, governed by an elected five -member Board of County Cormissioners. There are also four of her elected officials of W1 d County (Assessor, Clerk and Recorder, District Attorney, and Sheriff). The acconpanyi ng fi nanci al s t at ennnt s present the government and i t s component units, entities for which the government i s consi der ed t o be financially accountable. Bl ended component units, alt hough 1 egal l y separate entities, are, i n substance, part of the government ' s operat i ons. Each discretely presented component unit is reported in a separate column in the gover nnent - wi de financial st at ement s ( see not e below for description) to emphasize that it is legally separate from the government . Discretely presented component units: The Meld County Housing Authority is responsible for assisting Val d County residents with housing assistance. The Board of County Commissioners appoints all of the five- n-enber Housing Authority Board. The County has the ability to remove any of the appointed board member s, they can modify deci sions ons made by the board and can hire or fire persons responsible for the day t o day oper at i ons . The W1 d County Housing Authority is governed by state regulations, but was designated as part of the County for budgetary and audit purposes by an act of the Colorado General Assenbl y in 1989. A complete set of financial st at ement s can be obtained at the entity's administrative offices: W1 d County Housing Authority 903 6th Street Greeley, CO 80631 43 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 The E911 Emergency Telephone Service Aut hor i t y Board was cr eat ed by intergovernmental agreements pursuant to Article 11 of Title 29, C.R.S., as amended, that authorizes the county, municipalities within the county, and special districts within the county to enter into an agreement for the purpose of providing 911 emergency telephone services. Per the state statute cited above, the agreement creates a separate legal entity which i s responsible for admi ni s t er i ng the oper at i ons of the 911 emergency t el ephone service program in Val d County. The authority board cons i s t s of seven members with four selected by the W1 d County Comm ssi oners, one member each is selected by the City of Greeley, City of Fort Lupton and W1 d County Sheriff . Under the by -1 aws of E911 Aut hor i t y, VC d County i s required to pay all operating costs. They are to maintain all accounts and have accounts audited. St ate statute requires t hat all funds be maintained by the W1d County Treasurer. The operation of the E911 authority is done contractual 1 y by the Wl d County Communi cation Regi onal Cent er. There are no separate financial st at ement s prepared for the E911 component uni t Because t hey pr ovi de s ervi ces t o or otherwise benefit d Count y, the f i nanci al statements of the f of 1 owi ng or gani zat i ons are bl ended into the County financial statements: W1 d County Retirement Plan - The Retirement Board consists of five members, two selected by participating enpl oyees, two appointed by t he Board of County Commissioners, and the fifth being the Count y Treasurer. The County funds half of the retirement pl an, whi ch covers subs ant i ally all permanent, ful 1 - tine enpl oyees of W1 d County. The operation of the plan is accounted for in the W1d County Retirement Fund, as a Pension Trust Fund. Complete Fi nanci al statements can be obtained at the Veld County Treasurer's Office: Veld County Treasurer's Office 1400 North 17th Avenue Greeley, CO 80631 V�1 d County Fi nance Corporation - The Val d County Fi nance Corporation ("Corporation") was formed in 1987 as a not -for-profit corporation under section 501(c)( 4) of the Internal Revenue Code, and exists solely to acquire real estate and construct buildings for 1 ease to the County. The Board of County Comri s s i oners appoints the t hr ee- member Board of Directors of the Corporation, and approves all proj ects undertaken by the Corporation. The members of the Board of Direct ors are enpl oyees of the Count y. There are no s epar at e f i nanci al statements prepared for the Val d County Finance Corporation. 44 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 The Law Enforcement Authorities (LEA) were for red in accordance with Section 30- 11- 401, CRS. The 1 aw enf or cement authorities are taxi ng units cr eat ed by the county t o pr ovi de additional law enf or cement services by the county sheriff to residents in developed unincorporated areas of the county. The governing board of the law enforcement authorities is the five Void County Comrissioners. Law enforcement services to the authority are provided contractually by t he county sheri ff. There are no separate financial st at ernent s prepared for the Law Enforcement Authorities. The Local I mpr overlent Districts (LID) have not been included in the County's financial statements individually, as they are iniraterial, but are included as a blended corrponent unit of Public Vorks, a special revenue fund. The Board of County Comni s si oner s can create these assessment districts to construct or rehabilitate and finance public streets, storm drainage, water systems, sanitary sewer, or street lighting. The Primary purpose of an LID is to assess the costs of public improvements to those who are specially benefited by t he improvement . The LID exists only as geographic area wi t hi n which improvements are constructed and as an admi ni strati ve subdivision of the county. Having no board of directors, they do not operate i n any capacity as an independent government al entity. The county governing board, Board of County Commissioners, makes all decisions on behalf of this admi ni s t rat i ve entity. There are no separate financial s t at event s prepared for the Local I mpr ovenent Districts. The f of 1 owi ng r el at ed or gani zat i ons are excluded from the acconpanyi ng financial s t at events because the Count y' s account ability for these or gani zat i ons does not extend beyond various appointments. North Color ado 1Vtdi cal Cent er - The Board of County Commissioner s owns land underlying the main facility of the 1Vhdi cal Center, which land is currently leased to the Colorado Hospital Finance Authority as part of the security for financing the bonded indebtedness of the 1Vhdi cal Center. The indebtedness is not an obligation of the Board of County Comni s s i oner s and no taxpayer funds or Board of County Conmi s s i oner s funds are obl i gated to pay any portion of the principal, pr eni um or interest on the Bonds. The land i s leased back from the Authority to the Board of Trustees, a seven nember Hospital Board of Trustees appointed by the Board of Count y Commissioners. The Hospital Board of Trustees has entered into an operating sublease of the ground and facilities with NClC, Inc., a 501(c) (3) ent i t y, with three of its members also serving on the Board of Trustees, whi ch, i n t urn, has cont r acted with Banner Heal t h Systems to operate the Adi cal Center . NCNC has the ability to i ncur its own debt and its oper at i ons are financed totally by patient revenues . COUNTY OF VELD STATE OF COLORADO Year Ended Decenber 31, 2012 Greeley - d Airport Authority - The County Comrissioners appoint two of the five Airport Authority Board nenbers. . The County has contributed appr oxi nat el y 5% of the funds for capital construction. The Authority has ful 1 aut onony under Color ado State 1 aw, can incur debt , and funds its operations tot ally from user fees. V%l d Library District - The County Conmi s s i oner s, t oget her with the concurrence of the city counci 1 s of seven part i ci pat i ng mini ci pal i ties, appoint the s even- member Li brary y District Board. The Library District Board has total aut onony under the St at e Library Act t o incur debt , establish budgets, and 1 evy pr oper t y taxes to support the District's library system Col or ado Counties Casualty and Property Pool ( her ei naf t er referred to as "CAPP")-CAPP was formed July 1, 1986, by an intergovernrnental agreement by member counties as a separate and independent government al and 1 egal entity pursuant t o the provisions of Art i cl e XI V, Section 18(2) of the Colorado Constitution and Section 29-1-201 et seq, 24- 10- 115. 5, and 29-13-102, CRS, as amended. Each member county in this i nt er government al agr eerrent has the power under Col or ado 1 aw t o make provision for the property and casual t y coverage which constitute the functions and services joint 1 y provided by means of the CAPP. The Insurance Comm s s i oner of the State of Colorado has such authority with respect to the CAPP as is provided by applicable Colorado statutes . The purposes of the CAPP are to provide a risk management fund for defined property and casualty coverage and to assist members in control 1 i ng costs by provi di ng speci al i zed governmental risk management services and syst t errs . It is the intent of the neither s to use nerrber contributions to defend and i ndermi fy, in accordance with the byl aws, any member against states liability or loss to the limit of the financial resources of the risk management fund. It is also the intent of the member s to have CAPP provide needed cover age at r eas onabl e costs. All income and assets of CAPP shall be at all tines dedicated to the exclusive benefit of its members. Vhld County, through its I nsur ance Internal Service Fund, recognizes an expense for the amount paid t o CAPP annual 1 y for these coverages. Val d County is a charter member of CAPP and has been a continuous member since July 1, 1986. COUNTY OF VELD STATE OF COLORADO Year Ended Deceirber 31, 2012 B. Government -wide Financial Statements: The Count y' s basic f i nanci al st at ernent s consist of gover fluent - wi de statements, including a st at errant of net position and a statement of activities, and fund fi nanci al statements which pr ovi de a nvr a detailed 1 eve l of fi nanci al i of or mat ion. The government - wide focus is more on the sus t ai nabi lit y of the County as an entity and the change in aggregate financial position resulting from activities of the fiscal period. The statement of net position and the statement of activities display i of or vat ion about the county as a whole. In the government - wi de s t at event of net posi t i on, both the government al and busi nes s - type activities col urms are presented on a consolidated basis by column. These statements include the fi nanci al activities of the pr i nary government , except for fiduciary activities. For the rmst part, the e ffect of i nt erfund activity has been renoved from these st at event s. Governmental activities, whi ch nor nal 1 y are supported by taxes and i nt er gover nment al revenues, are reported s epar at el y from business -type activities, which rely to a significant extent on fees and charges for support . The government -wi de st at enEnt of activities reflects both the direct e xpenses and net cost of each function of the County's gover nnent al activities and bus i nes s-1 i ke activity. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include charges paid by the recipient for the goods or services offered by the program Direct expenses and program revenues resulting from interfund activity are treated as such in the participating funds and are not el i rni nat ed as part of the consol i dat i on process . Gant s and cont r i but i ons t hat are r es t r i ct ed t o meeting the operational or capital ✓ equi r enEnt s of a part i cular program and interest earned on grants that is required to be used to support a particular program are included in operating gr ants and cont r i but i ons , or capital grants and cont r i but i ons . Revenues which are not classified as program revenues are presented as general revenues of the County, with certain limited exceptions. The compar i son of direct expenses with program revenues i dent i f i es the ext ent to whi ch each government function or busi ness segment is self-financing or draws from the general revenues of the County. Fund Financial Statements The f i nanci al trans act i ons of the County are recorded i n i ndi vi dual funds. A fund is defined as a fiscal and accounting entity with a self - balancing set of accounts that comprise its assets, liabilities, fund e quity, revenues, and expenditures or expenses, as appropriate. Separate statements for each fund cat egor y - governmental, proprietary, and fiduciary - are presented. The enphasi s of fund financial stat at ement s is on naj or government al and enterprise funds, each displayed in a separate column. All renal ni ng government al and enterprise funds are aggregated and presented as non- rraj or funds. COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Proprietary funds distinguish operating revenues and expenses from nonoperating i t errs. Operating revenues and expenses generally resul t from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The pr i nci pal operating revenues of the Par arredi c enterprise fund and of the government's internal service funds are charges t o customers for sales and services. Operat i ng expenses for enterprise funds and internal service funds include the cost of sales and services, administrative e xpenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and e xpenses. C. Measurement Focus Government -wide, Proprietary and Fiduciary Fund Financial Statements The gover nment - wi de financial s t at errent s are reported using the ec onomi c resources measurement focus and the accrual basis of account i ng, as are t he proprietary fund and fiduciary fund statements. Revenues are ✓ ecorded when earned and expenses are recorded at the time liabilities are incurred, regardl ess of when the related cash flows take pl ace. Nonexchange transactions, in which the County gives (or receives) value without direct 1 y receiving ( or gi vi ng) equal value i n exchange, include property t axes, grants, and donations . Revenues from property t axes ar e ✓ ecognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all e ligibility r equi r enent s have been satisfied. Under the terms of grant agreements, the County funds certain program by a combi nation of specific cost -rei mbursement grants, cat egori cal block grants, and general revenues. Thus, when program expenses are incurred, t here are both restricted and unrestricted net assets avai 1 abl e t o finance the program It is the County's policy to first apply cost - rei mbursernent grant resources t o such program, fol l owed by categorical block grants, and then by general revenues. Government al fund financial st at errent s are reported using the current financial resources measurement focus and the rmdi fi ed accrual basis of account i ng. Revenues are recognized as soon as they are both measur able and avai 1 abl e. Revenues are considered to be available when they are collectible within the current period or soon enough t hereafter t o pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 90 days of the end of the current fiscal period. This represents a change i n accounting policy from prior years when revenues were considered to be available if collected within 60 days of the end of the current fiscal per i od. lvhnagerrent cons i der s the new t r eat rnent t o be preferable pr i mar i 1 y due t o the nature of the Count y' s gr ants and the t i ni ng of notification of receipt of payment in relation to the timing of the actual receipt. This change did not have a si gni fi cant effect on revenue ✓ ecognition for 2012 i n any of the governmental funds. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However expenditures related t o compensated absences and clai m and j udgment s, are recorded only when payment i s due. COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Property taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue i t erns are considered t o be measurable and avai l abl e only when cash i s received by the gover nrnent . The County reports the f of l owi ng naj or government al funds: The General Fund is the general operating fund of the County which accounts for all financial resources that are not accounted for in of her funds. Oper at i ons of the County such as public safety, pl anni ng and zoni ng, property valuation, tax col 1 ect i on and distribution, vehicle licensing, County a dni ni s t rat i on, and of her activities financed from taxes and general revenues are reflected in t his fund. The Public Works Fund records costs related t o County road and bridge construction and maintenance except for engineering, which i s recorded in the General Fund. By State law, Colorado counties are required to maintain a Road and Bridge Fund and a portion of road and bridge taxes is allocated to cities and towns for use in their road and street activities. The Social Services Fund adni ni s t er s human services programs under state and federal r egul at i ons. Pr ogr ans include, but are not limited to, 1Vbdi cai d, Food St apps, Foster Care pr ogr ans, and Temporary Assistance to Needy Families (TANS). Colorado counties are required by state law to maintain a Social Servi ces Fund. The Human Services Fund primary programs are associated with the Mar kforce Investment Act (WA) funded under the Departntnt of Labor, Employment and Training Administration. The Contingent Fund records any property tax revenue levied by the Board of County Commissioners to cover reasonably unforeseen expenditures . The Capital Expenditures Fund accounts for all the Count y' s construction projects. The County chooses to use the pay as you go plan instead of debt . Property t axes are used t o fund the Law Enf or cement Cent er and the expansi on of the Let ent i on Center . COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 The County reports the f of l owi ng enterprise fund: The Paramedic Fund operates the par antdi c servi ces for the County, which is pri nnr i 1 y funded by revenues for servi ces rendered. On My 7, 2012 ownership of the W1 d County Par arredi c Servi ces was transferred to North Colorado 1Vbdi cal Center and to Banner Health for operation. The County also reports the fol lowing fund types: The Internal Service Funds account for the financing of goods or services provided by one depart Trent or agency to other department s or agencies of the County on a cost r ei mbur s ement basis . The County's internal service funds report on self - i nsur ance programs for enpl oyee health, dent al and vision benefits, risk managentnt, unempl oyment , fleet servi ces, t el ecomnini cations and acquisitions of real estate and construction of buildings used by Count y depart ment s. Services provided and used by internal services funds are not entirely el i mi nat ed from the gover nrrent - wi de statement of activities . The primary government program expenses and expenses for the business -type activities on the government -wide statement of activities are decreased to eliminate revenue over expenditures in service funds where revenues exceed expenditures and increased to eliminate internal service funds that have expenditures in excess of revenues. The Agency Funds account for assets held by the County as an agent for i ndi vi duals, private organizations and other gover nrrent s. These funds are custodial in nature (assets equal liabilities) and do not involve rreasur ement of results of operations. The County has funds hel d for of her 1 ocal government al units, empl oyee/ empl oyer payr of 1 taxes, a Section 125 plan, and the Weld County Federal M ner al Lease District. The Fiduciary Trust Funds account for the activities of the W1 d County Retirement PI an and the Veld County Ot her Post Empl oyment Benefit Plans. These funds accunul ate resources for pension benefit , and of her post empl oynent benefit payment s t o qualified county empl oyees. The Plans use the accrual basis of accounting. Errpl oyee and empl oyer cont r i but i ons are r ecogni zed as revenues i n the period in whi ch the cont r i but i ons are due. Benefits and refunds are recognized when due and payable in accordance with terms of the Plan. 50 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2012 D. Assets, liabilities, and net assets or equity 1. Deposits and investments The Wet d County Treasurer maintains a cash and investment pool t hat i s available for use by al 1 County funds except for some agency funds. Accrued interest recei vable i s displayed s epar at el y. The armunt of interest gained through secured investments is credited to the County's General Fund per Col or ado St ate St at ut es, with the exception of the Cons er vat i on Trust, Capital Expenditures Fund, Liability Insurance Fund and E- 911 Authority. "Cash and cash equivalents" for the General Fund Cons er vat i on Trust , Capital Expenditures Fund, Li ability Insurance Fund and E- 911 Authority are stated at fair value. Any bank accounts not maintained by the Treasurer are displayed as "Restricted Assets" wi t hi n the appropri i ate fund and are stated at cost. The County consi ders cash and cash equivalents in propri et ary funds to be cash on hand and demand deposits. In addition, because the treasury pool is sufficiently liquid to permit withdrawal of cash at any tine without prior notice or penalty, equity in the pool is also deemed to be a cash e qui val ent . For the purpose of cash flows, cash and cash equivalents are determined by original maturity of three rmnt hs . Investments are reported at fair ✓ alues using quoted market prices. 2. Property Taxes: Property t axes attach as an enforceable lien on property as of January 1. Taxes were levied on December 21, 2012, and are payable either in two i ns t al 1 ment s due on February 28 and June 15 or in full on April 30. The bill becomes delinquent on March 1, Ivhy 1, and June 16 and penalties and interest nay be assessed by the County. The County, through the Weld County Treasurer, bills and collects its own property taxes, as well as property taxes of al 1 other taxing authorities within the County. In accordance with Section 14-7 of the Weld County Hone Rule Charter, all ad val or em tax 1 evi es for County purposes, when applied t o the total valuation for assessment of the Count y, shall be reduced so as t o prohibit the levying of a greater amount of tax revenue than was levied from ad valorem taxation i n the precedi ng year plus five percent (5°4, e xcept to provide for the payment of bonds and interest. The Board of County Commissioners nay submit the question of an increased levy to the County Council and, if in the opi ni on of a rraj or i t y of the County Counci 1 nay grant an increased levy for the County in such amount as it deems appropriate, and the County is aut hor i zed t o make such increased 1 evy. Any one capital proj ect requiring a capital expenditure out of funds procured by ad val or em taxation equal to a three 11 1 evy for three years, s hal 1 be prohibited unless approved by a naj or i t y vote of the qualified electors at a general or special election per Section 14-8 of t he d County Home Rule Charter . 51 COUNTY OF VELD STATE OF COLORADO Year Ended Decenter 31, 2012 3. Interfund Transactions Transact i ons between funds t hat wool d be treated as revenues, expenditures, or expenses if they involved organizations ext er nal to the County are accounted for as revenues, expenditures, or expenses in the funds involved. Transactions whi ch constitute reimbursement s of a fund for expenditures or expenses initially made from t hat fund whi ch ar e proper 1 y applicable t o anot her fund are recorded as expenditures or e xpenses in the reimbursing fund and as reductions of the expenditure or e xpense in the fund that is r ei nbur s ed. At year end, out s t andi ng bal ances bet wen funds are reported as "due t o/ from other funds". Interfund balances are generally expected to be repaid within one year of t he f i nanci al statement date. Any r esi dual bal ances out st andi ng between the gover nnent al activities and business- type activities are reported in t he government - wi de f i nanci al s t at ernent s as "i nt ernal bal ances". 4. Inventories and Prepaid Items Invent ones of government al funds, whi ch consist of expendable mat er i al s held for consunpt ion, are stated at cost ut i 1 i zi ng the wei ght ed aver age cost net hod. These funds fol 1 ow the consumption net hod of accounting whereby expenditures are recorded at the tine the inventory items ar e used. Inventories of proprietary funds are recorded at average cost. Certain payments t o vendors reflect cost applicable t o fut ure accounting per i ods and are recorded as prepai d i tens i n both government - wi de and fund financial statements. 5. Capital Assets Capital assets, whi ch include property, pl ant , equi pment , i nt angi bl e assets (computer software and right of ways for land use), and infrastructure assets (e.g., roads, bridges and similar items), are reported i n the applicable governmental or business - type activities colurns in the government - wide financial statements. Capital assets are defined by the County as assets with an initial, individual cost of tmre than $5, 000 and a useful life of Imr a than one year. Al 1 capital assets are valued at historical cost or estimated historical cost if actual hist on cal cost is not available. Danat ed capital assets are recorded at e s t i mated fair market value at the date of donut i on. The costs of normal mai ntenance and repairs that do not add to the value of the asset or materially ext end assets' lives are not capi t al i zed. 52 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Al 1 reported capital assets, except for gravel roads and i nt angi bl e assets are depreci at ed. Improvements are depreciated over the remaining useful lives of the related capital assets . Depreciation on all asset s i s provided on the st r ai ght - line basis over the f of 1 owi ng es t i mat ed useful lives: Bui 1 di ngs I rrpr ovenent s Infrastructure Infrastructure Equi prnent Heavy Equi pment - Bridges - Roads 20- 50 year s 20 years 50 years 20 years 3-5 years 10- 20 year s St at ement 34 al 1 ows an alternative approach whi ch would reflect a reasonable value of the asset and the cost incurred t o maintain the service pot ent i al to locally established mini mum standards in lieu of depreciation. To elect this option, the County mist devel op and i irpl ernent an asset management syst em whi ch measures, at least every third year by class of asset , i f the ni ni num standards are being maintained. Related disclosures are additionally required as part of the Required Supplement ar y I of or mat i on. The County has elected t o use the alternative approach only for gravel roads. 6. Compensated Absences County errpl oyees accumul ate sick leave and vacation benefits at rates of 8 hours per rmnt h and 8 to 16 hours per 'milt h, respectively, depending on 1 engt h of service. In the event of retirement or t er ni nation, an e npl oyee is paid 100% of accumul at ed vacat i on pay. An errpl oyee whose date of hire is prior to January 1, 1985, is paid for 50% of accunul at ed sick l eave hours up t o the equi val ent of one rmnt h; i f the enpl oyee' s date of hire is after January 1, 1985, no sick leave is paid upon ✓ etirement or t er mi nation. Up to 320 hours of annual vacation nay be carried over from one year to the next. Conpens at or y tine is granted (except for official, professional, and administrative positions) at the ✓ ate of one and one- half hours for each over t i me hour worked, not to be accunul at ed in excess of forty hours. The unpaid sick leave, vacation pay and related benefits at the end of t he period wi l l generally not be paid with expendable and avai 1 abl e resources. Proprietary funds accrue sick leave, vacation pay and related benefits in the period they are earned by the employees. The entire compensated absence liability is reported on the gover nnent - wi de financial st at events. Expenditures and liabilities for conpens at ed absences are reported on the gover nnent fund st at events only when the liability for the conpens at ed absences becomes due. 7. Long-term obligations In the government - wi de financial statement s and propri i et ary fund types in t he fund f i nanci al st at ement s, 1 ong- term debt and of her long- ter m obligations are reported as liabilities in the applicable gover nnent al activities, business - type activities, or proprietary fund type st at errant of net position. COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 8. Fund Equity The Cover nrrient al Accounting Standards Board ( GASB) has issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54) . As prescribed by GASB Statement 54 governmental funds report fund balance in classifications based primarily on the extent to which the County is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. As of December 31, 2012, fund balances for governmental funds are c ompr i sed of the following: 1.Nonspendable fund balance includes armunt s that are (a) not in spendable form or (b) 1 egal 1 y or cont r actual 1 y required t o be nai nt ai ned i nt act . The "not in spendable forth' criteria include items that are not expected to be converted to cash, for exampl e such as fund balance associ at ed with i nvent on es, prepai d armunt s, 1 ong-term 1 oans and notes recei vabl e, and property held for resale (unless the proceeds are restricted, committed, or assigned) . 2.Restricted fund balance category includes armunt s that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Restrictions may effectively be changed or lifted only with consent of resource providers. 3.Committed tied fund balance includes armunt s that can be used only for the specific purposes determined by a resolution of the Board of Count y Commissioners , the Count y' s highest level of decision- nuki ng authority. Commitments may be changed or lifted only by the County taking the sane for nal action that imposed the constraint or i gi nal 1 y. 4.Assigned fund bal ance comprises armunts i nt ended t o be used by the County for specific purposes that are neither restricted or committed. Intent is expressed by (1) the Board of County Commissioners or (2) an official (Director of Finance and Administration) to which the Board of County Conti s s i oner s has delegated the authority to assign armunt s to be used by the County for specific purposes but do not meet the criteria to be classified as restricted or comritted, and 5. Unassigned fund bal ance i s the r esi dual classification for the government's General Fund and includes all spendabl e armunt s not cont ai ned i n the of her classifications. Unassigned armunt s are t echni cal 1 y avai 1 abl e for any purpose. Order of Fund Balance Spending Policy The County's policy is to utilize funds in the following order: restricted fund bal ance, committed fund bal ance, assigned fund bal ance, and unassigned fund bal ance. 54 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 The Board of County Comri ss i oners adopted the County Fund Balance Policy on Decenber 14, 2011, nunc pro t unc January 1, 2011. The policy was created to help reduce the negative impact on the County in tines of economic uncertainty, rraj or fluctuations in oil and gas assessed valuations, and potential losses of fundi ng from of her government al agencies. The policy established mi ni num r equi r ernent s for reserves and guidelines for the use of certain funds. The reserves and restrictions are also consistent with the requirements under Colorado statute or state cons t i tut i onal r equi r ement s. The County Fund Balance Policy requires the f of l owi ng: • Any renai ni ng fund bal ance fol l owi ng all rest ri ct i ons and comri t rnent s in the Health Fund shall be assigned for the purpose of future health programs for the benefit of the citizens of Vet d County. • Any r emai ni ng fund balance f of 1 owi ng all restrictions and commitments in the Social Services Fund shall be assigned for the purpose of fut ur a wel fare pr ogr am for t he benefit of the citizens of W1 d County. • Any renni ni ng fund balance fol l owi ng all restrictions and comrit rent s in the Hunan Services Fund shall be assigned for the purpose of fut ure wel fare, seni or, and enpl oyment programs for t he benefit of the citizens of Weld County. • The Contingency Fund shal 1 nai nt ai n a mini mim fund balance t o cover a mi ni num ten ( 10) percent of the annual expenditures and maxi mim of t went y (20) percent of the annual total expenditures as det er mi ned by the Director of Finance and Admi ni s t r at ion t o provide: (1) a reasonable level of assurance that Weld County's operations wi 11 continue even i f circumstances occur wher e revenues are insufficient in an armunt that is equal to at least one -percent of annual expenditures t o cover necessary expenses for public safety, public welfare and public works; (2) there is a naj or reduction i n oil and gas assessed valuations; or (3) there are other unexpected needs or ever gency situations costing an annunt that is equal to at least one -per cent of annual total expendi t ur es t hat do not r out i nel y occur . The Contingency Fund shall be funded by property tax with a half-mi 11 applied to the county's assessed value annually, unless the Board of Val d County Corral s s i oners adj us t s the armunt i n the annual budget process. • The three- percent TABOR emergency reserve required by Article X Section 20(5) of the Col or ado Constitution shal 1 be a restricted fund bal ance in the General Fund in an armunt equal t o s i x- mi 1 1 i on dollars or three- per cent of the TABOR revenue l i mi t , whichever i s greater . 55 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2012 Fund bal ances for all naj or and non- maj or government al funds as of December 31, 2012, are distributed as follows: Nonspendabl e Invent or y Long- Term Account s Recei vabl e Prepaid Expenses Tot al Nonspendabl e Restricted for Public Works Health Soci al Services Hunan Services TABOR Reserve Other Purposes Total Restricted Committed to Capital Pr of ect s Solid Wsta Disposal thner al Cont i ngenci es Economi c Devel opment Tot al Commitment s Assigned Appr opr i at i ons i n budget Tot al Assigned Unassi gned Tot al Fund Balance Cener al 145, 170 401, 314 670, 489 Publ i c Marks 1, 003, 152 3, 138 1, 216, 973 1, 006, 290 6, 000, 000 863, 582 6, 863, 582 2, 305, 309 2, 305, 309 615, 428 615, 428 10, 126, 783 21, 128, 075 32, 721, 428 Soci al Services 9, 356 9, 356 5, 006, 019 32, 721, 428 5, 006, 019 33, 727, 718 5,015, 375 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2012 Human Servi ces Cont i ngent Capital Expendi t ur es Non Mij or Total 1, 148, 322 - 401, 314 4, 079 - - 597 687, 659 4, 079 938, 428 938, 428 INFO .10 597 2, 237, 295 1, 386, 981 324, 200 32, 721, 428 1, 3 86, 981 5, 006, 019 938, 428 6, 000, 000 1, 187, 782 1, 711, 181 47, 240, 638 - 17,316, 667 17, 3 16, 667 - 1, 012, 000 1, 012, 000 28, 018,636 - - 28, 018, 636 - - 2, 305, 309 28, 018,636 17,316, 667 1, 012, 000 48, 652, 612 615, 428 615, 428 10, 126, 783 942, 507 28, 018,636 17, 316, 667 2, 723, 778 108, 872, 756 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Encumbrances The county uses encurrhr ances t o control expenditure conni t nent s and enhance cash management. Encumbrances reflect the outstanding contractual obligations for which goods and services have not been received. They are set up t o reserve por t i ons of applicable appr opr i at i ons . Encurrbr ances still open at year end are not account ed for as expenditures or liabilities, but as a constraint imposed on fund balance. As of December 31, 2012, the count y' s General Fund has a tot al of $1, 356, 033 i n encumbrances, which were reported as part of the assigned fund balance on the government al fund balance sheet. Encumbrance balances by nnj or funds and non -major funds as of December 31, 2012 are: Restricted Committed General Fund $ 740, 605 $ Public Works 888, 799 Capital Tot al 1, 629, 404 8, 383, 197 8,383,197 Assigned Total $ 615,428 $ 1, 356, 033 888, 799 8, 383, 197 615, 428 10, 628, 029 9. Net Position Net position represents the difference between assets and liabilities. Net position invested in capital assets, net of related debt consists of capital assets, net of accumulated depr eci at i on, reduced by the out st andi ng bal ances of any borrowing used for the acquisition construction of improvements of those assets. Net position is reported as restricted when there are limitations imposed on their use either t hr ough the enabling legislation adopted by the County or through external restrictions imposed by creditors, grantors, laws or regulations of other government s. The County first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is avai 1 abl e. 10. Estimates The pr epar at i on of financial s t at errent s in conformity with gener ally accepted accounting principles requires management t o rake est i nut es and assurrpt i ons that affect the armunt s reported in the financial statement s and accompanying notes. Actual results nay differ from those estimates. 58 COUNTY OF MELD STATE OF COLORADO Year Ended December 31, 2012 Note 2 - Stewardship, Compliance, and Accountability A. Budgetary information An annual budget and appropriation ordinance is adopted by the Board of County Corrmi s s i oner s in accordance with the Colorado State Budget Act and Mrsl d County Home Rule Charter . The budget i s prepared on a bas i s consistent with generally accepted accounting principles. Budgets ar e e st abl i shed for all Cover nnent al funds, Internal Service funds and the Enterprise Fund. The accounting system i s enpl oyed as a budgetary management cont r of device during the year t o rmni t or the i ndi vi dual departments. The fund level is the level of classification at which e xpenditures nay not 1 egal 1 y exceed appr opr i at i ons, except for the General Fund where the depar t trent 1 evel of expenditures cannot 1 egal 1 y e xceed appr opr i at i ons. During the year, several supplement al appr opr i at i ons were necessary. Al l annual appr opr i at i ons 1 apse at year e nd. The Director of budget ed armunt s alter the total depart rnent mis t suppl ement al appr opr i at i on acconpanyi ng appr opr i at i ons. Finance and Administration within departments of appropriation for a be approved by the appr opr i at i on or di nance. ordinances were enacted. financial statements i s aut hor i zed to transfer each fund. Any revi si ons t hat fund or for any General Fund County Commissioners through a During 2012, two supplement al Budget armunt s reported i n the reflect these supplement al B. Excess of expenditures over appropriations Excesses of expenditures over appropriations in General Fund departments can be seen i n the expenditures section of the Schedule of Revenues, Expenditures and Changes in Fund Bal ance - Budget and Actual . Expenditures exceeded appropriations i n the Law Enf or cenent Authority funds (Special Revenue) . The excess expenditures in the law enforcement funds were a result of excess funds being available at the end of the year. The purpose of the law enforcement authorities is to collect taxes to fund law enforcement services in unincorporated parts of 'Meld County and any excess funds can be used to offset the cost of law enforcement. 59 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Note 3 - Equity in Pooled Cash and Investments : A. Cash and Investments Cash and investments held by the Treasurer's office at December 31, 2012 as reported by the financial institutions, consisted of the following: Deposi t s $ 45, 230, 229 Investments : FILM 10, 000, 000 FNM4 84, 975, 000 _94, 975, 000 Total $140, 205, 229 Cash and i nvest Trent s held by the Treasurer's office at December 31, 2012, excl udi ng out s t andi ng war r ants , reported i n government - wi de and agency funds consisted of the following: Government -wi de Agency and Fiduciary funds Total B. Deposits $124, 229, 308 15, 790, 034 $140, 019, 342 The Colorado Public Depos i t Protection Act (PDPA) requires that all 1 ocal governments deposit cash in eligible public depositories. Eligibility is determined by state regulations. The State regulatory comrissioners regulate the eligible public depositories. Amounts on deposit in excess of federal insurance levels mist be coil at er al i zed by eligible collateral as det ermi ned by the PDPA PDPA allows the financial institutions t o create a single collateral pool for all public funds held. The pool is to be maintained by anot her institution, or held in trust for all the uni nsured public deposits as a group. The narket value of the col l at eral mist be at least equal to 102% of the uninsured deposits. At December 31, 2012, the County had deposits of $45, 230, 229 col 1 at er al i zed wit h securities held by the financial institutions' agents but not i n the County nave. 60 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 C. Investments The County is required to comply with St ate statutes which specify investment instruments meeting defined rating, maturity, custodial and concent ration risk criteria in which local governments may invest i ncl udi ng: • Cbl i gat i ons of the United States and certain U S. Agency securities • Certain international agency securities • General obligation and revenue bonds of U S. local gover nnent entities • Banker's acceptance of certain banks • Cornier ci al paper • Vii tten repurchase agreements collateralized by certain authorized securities • Certain rmney market funds • Guaranteed investment contracts • Nbney Mir ket Funds i n Bank Account The County has no pr ovi s i ons in its investment policy that would further 1 i ni t investment choices . At December 31, 2012, the County had the f of l owi ng i nves t nEnt s: Investment Nhturities (in Years) 1 or less $ 0 1 - 3 yrs. 0 3 — 5 yrs. _ 94, 975, 000 $ 94, 975, 000 Nbney Market $ 45, 230, 229 Total $140, 205, 229 D. Credit Risk State statutes limit investments in U. S. Agency securities to the highest rating issued by nationally recognized statistical rating organizations (NRSRc) . At December 31, 2012, the County investments in the Federal Hone Loan Nbr t gage and Federal National Nbr t gage Association were rated AAA by Standard & Poor' s . Nbney Mir ket Funds were managed by W11 s Fargo Bank i n accor dance with state regul at i ons pl edged at 102% Government Guar ant eed Bonds and are AAA rated. E. Concentration of Credit Risk State statute does not limit the armunt the County nay invest in one issuer . At December 31, 2012, the County's i nves t trent s i n Federal National It t gage Association and Federal Hone Loan It t gage represented 89% and 11°/s respectively of the County's total investments. 61 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 F. Interest Rate Risk State St at ut es unit the maxi mum maturity date unl es s an exception is made by the county commissioners, which does not exist at the present tine, to five years. The average duration in the portfolio on Dec ember 31, 2012 was 4.5 years. This factor combined with the high quality credit risk of the portfolio limit interest rate risk to a very small percentage of the portfolio. In fact , at year end the average mar k- t o -the -market was within one percent of the county's basis . G. Money Market Funds in Bank Account The County had $23, 023, 425 invested in overnight pooled rmney with W11 s Fargo on thcenber 31, 2012. The County's investment at W1 l s Fargo is a direct obligation of the bank and the funds are maintained in a rmney market account earning a negotiated rate of r et urn. The collateral for t his account is in an undi vi ded i nt er est agai nst a pool of U S. Government securities neet i ng the PDPA r equi r event s of the State of Col or ado, which is adni ni s t er ed under the State's Banki ng Di vision. The Fair value of all of the funds shares are the sane and are priced at one dollar and are 1 i qui d daily. A des i gnat ed custodial bank pr ovi des safekeepi ng and depository services in connection with the direct i nvest ment and withdrawal functions. Subs ant i ally all securities owned are held by the Federal Reserve Bank in the account nai nt ai ned for the cust odi al bank. The cust odi an' s internal records identify the invest reent s owned by the par t i ci pat i ng governments. H. Restricted Cash The Decenber 31, 2012 restricted cash balance of $389, 200 is nude up of $65, 000 advanced to cover insurance claims and $324, 200 that mist be used in accor dance with the Conservation r egul at i ons set by the lottery authority. I. Component Units The carrying balance of the Housing Authority's cash deposits was $1, 879, 676 at December 31, 2012. Bank and investment balances before reconciling i t ems were $1, 880, 676 at that date, the total armunt of which was fully insured by depository insurance or secured with collateral hel d by the Authority's agent in its name. Deposits consist of the following: Checking, imney Market and savings account $1, 880, 676 Restricted cash consists of tenant section 8 HAP reserves and escrow. The available cash balance of $3, 060, 058 for the E911 authority is included in the Agency and Fiduciary Fund Cash balance of $15, 790, 034 held at the Weld County Treasurers Office listed above. 62 COUNTY OF VELD STATE OF COLORADO Year Ended Decenber 31, 2012 Note 4 - Inter - fund Trans actions Due to/from other funds: The county reports inter- fund bal ances bet wuen 'luny of its funds. Some of the bal ances are consi der ed i matt eri al and are aggregated into a single col unn or row. The sum of all balances presented in the table agrees with the sum of i nt er fund balances presented in the balance sheet for government al and proprietary funds. The balances resulted from the tine lag bet vwen the dates that (1) inter fund goods and services are pr ovi ded or reimbursable expenditures occur, (2) trans actions ar e recorded in the accounting syst em and (3) payment s bet wen funds are made. Inter fund balances are generally expected to be repaid within one year of the financial st at ement date. Receivable Fund Payable Fund General Public Works Internal Service General Fund Health General Hunan Services Hurran Services Social Services Capital General Fund Internal Service Internal Service Capital $ 169 700 364, 743 8935 20 161, 591 298 230, 868 9, 990 $ 777, 3.14 63 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Transfers in/out: Transfers are indicative of funding for capital projects or subsidies of var i ous County operations and r e- al 1 ocat i on of special revenues . The following schedule briefly sunmirizes the County's transfer activity: Transfer To: General Fund Human Services Capital Non- Mij or Government I nt er nal Service Transfer From General Public Marks Non -1Vhj or Par amedi c Fund Fund Government al Fund 12, 351 3, 350, 000 2, 500, 000 1, 086, 000 6, 948, 351 $ - $ 1, 200, 000 2, 300, 000 3, 500, 000 507, 909 592, 909 Note 5 - Allowance for Uncol 1 ect i ble Accounts Recei vabl e: Tot al 85, 000 $ 3, 539, 699 $3, 624, 699 12, 351 4, 550, 000 3, 007, 909 3, 386, 000 3, 539, 699 14, 580, 959 The allowance for uncol 1 ect i bl e receivables consists of the following at December 31, 2012: Fund Type General Public Vor ks Social Services Cont i ngent Capital Expenditures Internal Service Total Allowance for Uncol 1 ect i bl e $ 34, 740 4, 404 5, 825 4, 483 4, 434 1,819 $ 55, 705 64 65 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2012 Note 6 - Capital Assets: Capital asset activity for the year ended December 31, 2012, was as follows: Governmental activites Capital Assets not being depreciated Land and water rights Intangible Assets Gravel Roads Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Buildings Improvements Equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation Buildings Improvements Equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Beginning Balance Increases Decreases Transfers In (Out) $ 8,451,695 223,620 11,383,291 10,267,034 $ 38,208 $ 463,028 1,039,497 3,878,026 30,325,640 5,418,759 124,561,425 7,596,419 44,697,077 317,504,118 1,762,163 1,620,043 7,098,708 15,509,339 8,478 94,617 103,095 249,719 3,359,788 2,245,104 494,359,039 25,990,253 5,854,611 33,013,017 2,864,236 28,448,043 207,994,191 272,319,487 2,933,640 335,751 3,993,772 15,343,165 249,719 3,237,064 1,630,853 22,606,328 5,117,636 222,039,552 3,383,925 Governmental activities capital assets, net $ 252,365,192, $ 8,802,684 Business -type activities: Capital Assets not being depreciated Land Capital assets being depreciated: Buildings Improvements Equipment Total capital assets being depreciated Less accumulated depreciation Buildings Improvements Equipment Total accumulated depreciation Total capital assets being depreciated, net 736,975 Ending Balance $ 396,265 $ 8,886,168 56,325 742,973 (123,601) 12,290,709 18,507,418) 5,543,025 (8,178,429) 27,462,875 6,763,324 2,034,858 71,174 123,601 132,837,193 11,251,320 48,507,171 330,891,954 8,992,957 523,487,638 455,720 55,727 36,152,658 3,255,714 29,204,751 221,706,503 511,447 290,319,626 8,481,510 233,168,012 $ 840.070 $ 303.081 $ 260,630,887 $ 48,496 $ $ 710,305 55,727 2,058,417 2,824,449 431,455 55,727 861,616 1,348,798 1,475,651 24,265 152,694 2,058,417 2,058,417 1,014,310 176,959 1,014,310 (176,959) 1,044,107 $ (48,496) $ - (710,305) (55,727) (766,032) (455,720) (55,727) (511,447) (254,585) Business -type activities capital assets, net $ 1,524,147 $ (176.959) $ 1,044,107 $ (303 081 $ - 66 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2012 Beginning Ending Balance Increases Decreases Transfers In (Out) Balance Housing Authority Capital assets being depreciated: Equipment Total capital assets being depreciated Less accumulated depreciation Buildings Improvements Equipment Total accumulated depreciation Total capital assets being depreciated, net Housing Authority capital assets, net E-911 Assets: Capital Assets not being depreciated Construction in progress Capital assets being depreciated: Equipment Total capital assets being depreciated Less accumulated depreciation Equipment Total accumulated depreciation Total capital assets being depreciated, net E-911 capital assets, net $ 42,039 42,039 8,643 $ 26,775 $ 23,907 8,643 26,775 23,907 30,183 1,024 16,442 30,183 1,024 16,442 11,856 7,619 1Q333 $ 11,856, $ 7,619 $ 10,333 $ $ 14,765 14,765 9,142 $ 9,142 $ $ 4,502,545 - - 4,502,545 4,502,545 - - 4,502,545 1,523,334 1,523,334 439,596 - - 1,962,930 439,596 - - 1,962,930 2,979,211 (439,596) $ 2,979,211 $ f439,596) 2,539,615 $ 2,539,615 67 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Depreciation expense was charged t o functions/programs of the primary government as follows: Government al activities: General government Public safety Streets and hi ghways Economic assistance Culture and recreation Health and welfare Capital Assets held by government's internal service funds are charged to the van i ous functions based on their usage of the assets Total depreciation expense- government al activities Bus i nes s - type activities Par anedi c Service $ 1, 608, 639 1, 763, 085 15, 625, 128 23, 471 10, 960 422, 426 3, 152, 619 $ 22, 606, 328 $ 176, 959 Component Unit s Housing Authority 1, 024 E- 911 Authority 439, 596 Total depreciation expense component units $ 440, 620 Note 7 - Risk management and insurance: The County is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; and errors or omissions. These activities are accounted for i n the Insurance Fund, an internal service fund. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the armunt of the loss is reasonably est i mmabl e. Insurance coverages have not been significant 1 y reduced from prior years and settlements have not exceeded insurance coverage in the past three years . The County manages risks of 1 oss through a combination of conirer ci al insurance, participation in a public entity risk pool, (See Note 1) and self-insurance. These activities are accounted for in the Insurance Fund, an internal service fund. The County pr ovi des health, dental and vision i nsur ance benefits to enpl oyees, whi ch are funded by enpl oyee and employer cont ri but i ons. These activities are accounted for i n the Health Insurance Fund, an i nt ernal service fund. 68 COUNTY OF VELD STATE OF COLORADO Year Ended Decenber 31, 2012 Wrkers' Compensation coverage is partially self -insured, with insurance coverage of a $750,000 self -insured retention. Estirmted liabilities for cl ai rrs nude and claim incurred but not reported (IBNR) at year -end are shown as accrued liabilities in the fund. These est i mat es are based upon a third -party admi ni st r at or s review of claims and actuarial proj ections ons from hi st or i cal cl ai ns dat a. Changes i n the bal ances of claims liabilities during the current and prior years are as follows: Unpaid Cl ai ns - Begi nni ng Incurred Claims (Includes I BNR' S) Claims Paid Unpaid Cl ai xis - Endi ng 2011 $ 1, 763, 053 1, 295, 334 (1, 077, 507) $ 1, 980, 880 2012 $ 1, 980, 880 548, 329 (1, 024, 169) 1, 505, 040 The Insurance Internal Service Fund provides protection against losses i nvol vi ng County property, equi pment , and 1 i abi 1 i t y. Reserves within the fund support hi gher deductible or self - insured retention 1 evel against loss. Payment s to CAPP for coverage under the insurance pool are shown as expenses i n the Insurance Int ernal Service Fund. Est i nut ed liabilities under the $125,000 self -insured retention for claim, made and claims incurred but not reported (IBNR) at year-end are shown as accrued liabilities in the fund. These es t i mat es are based upon CAPP' s cl ai m administrator's review of claims and actuarial projection from historical claims data. Changes in the balances of claim, liabilities under the $125, 000 self- insured retention during current and prior years are as follows: Unpaid Cl ai trs - Begi nni ng Incurred Cl aims (Includes IBM! s) Cl aims Pai d Unpaid Cl ai ms - Endi ng 2011 $ 264, 160 273, 925 (337, 142) $ 200., 943 2012 $ 200, 943 184, 772 (198, 706) $ 187, 109 The Health Insurance Internal Service Fund covers the county's dental and vision reimbursement plan. The plan is not an insurance program, but rat her an employee r ei mbur senent plan t hat closes out each year on Decenber 31, for services received on or before t hat date. No out st andi ng cl aim or incurred but not reported liabilities exist for year - end. COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 In addition the Health Insurance Internal Service Fund as of January 1, 2006, covers the county's health insurance program The plan is a sel f - f unded errpl oyee health benefit plan with a specific deductible annunt of $100, 000 per individual, and an aggregate excess loss insurance policy t hat has both a rmnt hl y at t achment point and an annual cumil at i ve at t achrnent limit with a terra nal attachment point . Attachment points ar e calculated based upon enrol 1 ment . Changes i n the balance of the claim l i ability during the current year are as follows : Lnpai d CI ai nF - Begi nni ng Incurred Claims Claims Paid Unpaid CI ai ns - Endi ng Note 8 - Long -Term Debt : 2011 $ 1, 980, 953 12, 948, 583 (12, 698, 200) 2012 $ 2, 231, 336 11, 120, 657 ( 1 1, 018, 669) 2, 231, 336 $ 2,333 324 V�1 d County has no general bonded indebtedness . I n accordance wit h Section 30- 35- 201 CRS, 1973, the County's general bonded indebtedness is United to 3% of the assessed valuation, or $195, 404, 498 at Decenber 31, 2012. The County has i s sued industrial revenue bonds for the purpose of financing capital projects of several private enterprises. Under terns of a financing agreement , the bonds are sold to a bank, the pr i vat e enterprise assures full responsibility for repayment of the debt, and the County is released from any liability for r epaynent . Industrial revenue bonds outstanding as of December 31, 2012 totaled $5, 096, 215. Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2012, was as follows, the balances, additions and reductions are listed by the funds where the liability is accrued and liquidated: Begi nni ng Bal ance Addi t ions Reduct i ons Endi ng Bal ance Due W t h i n One Year Conpensated absences General Fund $ 1, 625, 750 $ 100, 742 $ 90, 964 $1, 635, 528 $ 67, 887 Public V\brks 456, 534 36, 139 15, 527 477, 146 6, 935 Social Services 807, 369 97, 799 82, 922 822, 246 76, 548 Public Health 216, 553 2, 615 16, 076 203, 092 4, 781 Hunan Services 164, 154 27, 630 32, 840 158, 953 31, 792 Total governmental $ 3, 270, 360 $ 264, 925 $ 238, 329 $ 3, 296, 965 $ 187, 943 70 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Note 9 - W1 d County Retirement PI an: Plan Description: The Wl d County Ret i rement PI an (Plan) i s a si ngl a-empl oyer, defi ned benefit pension plan administered by a five -member retirement board. The plan provides retirement , disability and death benefits to plan members and beneficiaries at the discretion of the Retirement Board. The Retirement Board and the Board of Commissioners maintain the authority to establish and amend benefit provisions of the Plan. The Retirement Board issues a publicly avai 1 able financial report t hat includes financial s t at ement s and r equi r ed suppl ement ary i of or mat ion. That report nay be obt ai ned by cont acting the County of Weld, State of Col or ado. Funding Policy: The cont r i but i on r equi r event s of pl an members and the County are est abl i shed and nai nt ai ned by the Board of Cormi ssi oners. Pl an members are required t o contribute 10. 75% of their annual covered payroll. The County is required to contribute at an actuarially determined rate; the current rate is 10. 75% of annual covered payroll. Annual Pension Cost and Net Pension Obligation: The County's annual pension cost and net pension obligation to the Plan the current year were: Annual Requi red Cont r but i ons Interest on net pension obligation Adjustment to Annual Required Contribution Annual Pension Cost Contributions nude 6, 138, 685 408, 697 (420, 179) 6, 127, 203 ( 5, 970, 039) Increase in net pension obligation 157, 164 Net pension obl i gat i on (asset) begi nni ng of year 5, 108, 709 Net pension obl i gat i on (asset) end of year $ 5, 265, 873 The annual required contribution for the current year was determined as part of the January 1, 2012 actuarial valuation using the entry age actuarial cost met hod. The actuarial as sumpt i ons included ( a) 8% investment rate of return (net of administrative expenses) and (b) projected salary increases ranging from 5. 3% to 8. 5% per year. Both (a) and (b) included an inflation component of 2. 8% The actuarial value of assets was det erni ned using techniques that srmot h the effects of short - term volatility in the market value of investments over a five- year period. The unfunded actuarial liability is being armr t i zed as a level per cent age of proj ect ed payroll on an open basis . The remaining armr t i zat i on period at January 1, 2012, was 30 years. Pension obligations are paid by County funds i n proportion to the salary incurred by each fund. 71 COUNTY OF VELD STATE OF COLORADO Year Ended Decenber 31, 2012 Three -Year Trend Information: Fiscal Year Ended December 31, 2010 December 31, 2011 December 31, 2012 Funding Status: Actuarial Valuation Date 1/ 1/ 12 Actuarial Value of Assets (a) Annual Pension Cost (APC) 5, 775, 895 6, 443, 570 6, 127, 203 $135, 173, 969 Actuarial Accrued Liability ( AAL) Entry Age (b) $203, 114, 167 Percentage of APC Cont r i but ed 84. 6% 104. 1% 97.43% Unfunded AAL ( UAAL) (b- a) $67, 940, 198 Net Pension Obl i gat i on (Asset) 5, 371, 897 5, 108, 709 5, 265, 873 Funded Ratio (a/ b) Covered UAAL as a Payroll ( c) Percent age of Covered Payr of [b-a)/c] 66.55% 55, 871, 701 121. 60% A schedule of funding progress can be found in the RSI section following the notes to the financial stat at ement s. The schedule of funding progress presents information on the funding process and its increases and decreases over tine. Based on several rmnt hs of study and review of available plan design opt i ons, the Ret i r errmnt Board r evi s ed the provisions of the V1/461 d Count y Retirement Plan in order to reduce the future volatility of the plan's funded status and help to secure the financial future of the Plan. The mtj or i t y of the revi si ons only impact new rnenber s hi red on or after January 1, 2010. The provi si ons of the revised plan provide a variable annuity with members accruing 1. 9% of their pay each year toward their age 65 annuity. The benefit is adjusted each March based on the Plan's asset return under or over 5% for the prior year. Early retirement opt i ons continue t o be available under the revised pl an. The i nt er es t rate credited to contributions after January 1, 2010 i s 3% per year. 72 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Note 10 - Ot her Post Enpl oyment Benefits: Plan Description: Veld County Other Post Employment Benefits Plan ((FEB P1 an) is a single- enpl oyer defined benefit healthcare pl an administered by W1 d County t hat pr ovi des medi cal , dent al , and vision insurance benefits to el i gi bl e ✓ etirees and their spouses. The OPEB Plan was created by a Board of 'Veld County Comri ssi oners resolution on November 30, 1998, and amended December 16, 2002 and Sept ember 21, 2005. The OPEB Plan provides the same health, dental, and vision plan as offered W1 d County empl oyees and at the sane cost. The program i s not part of the Val d County Ret i r event PI an and is not a vested benefit or right, but it is a plan that can be amended or stopped at any tine by the Board of Veld County Comri s s i oner s for any reason, and no separate financial stat at ement s are prepared. The program i s only avai 1 abl e to Meld County employees hired prior to October 1, 2005. From December 16, 1998, to December 31, 2008, a retiree who ✓ etires from employment with Vld County after ten years of service, or was an elected official of Wl d County for at least one full four year term who has attained the age of 55 years and is drawing benefits from t he Wl d County Retirement PI an i s eligible t o continue health, dent al , and vision coverage until age 65. Aft er January 1, 2009, an empl oyee mist have attained age 57 and have 15 years of service to be eligible. From 2009 until 2014 the required age attainment and years of service are each increased by one year annually, so effective January 2014 an employee mist have attained age 62 and have 20 years of service to be eligible, unless the employee attains age 55 and has 30 years experience or has attained age 55 and has served as a W1 d County elected offi i ci al for two full t er rrs . Coverage ends in all cases at age 65. The Board of W1 d County Comri s s i oners on Sept enter 15, 2008, decided by r es of ut i on t hat the current program will be stopped January 1, 2009, except for those e npl oyees born pri or to January 1, 1957, or any errpl oyee born on or pri or to December 31, 1958, who wi l l have 30 years of service prior to reaching age 62. Employees meeting these criteria wi l l be gr andf at her ed into the current plan and wi 1 1 r enai n el i gi bl a for continued benefits under the retiree health insurance program adopted December 16, 2002. An enpl oyee meeting the above criteria to be eligible for the gr andf at her ed plan the e npl oyee and/ or dependents, i f applicable, mist have been enrol 1 ed as of January 1, 2008, in the Val d County health insurance plan. Errpl oyees and/or dependents enroll ed in the W1 d County health insurance pl an after January 1, 2008, are not eligible for the gr andfat her ed plan. On July 19, 2010, the Board of Val d County Commi s s i oners t er mi nat ed the program e ffective June 30, 2012, for all eligible enployees that had not retired or signed an agreement for continuation of health insurance coverage as of October 1, 2010. 73 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Funding Policy: The cont r i but i on r equi r ement s of plan nen1 er s and Wl d County ar e e st abl i shed and nay be amended by the Board of W1 d County Comm s s i oner s annual 1 y. The required contribution i s based on proj ect ed pay-as-you-go financing r equi r event s. For f i s cal year 2012, the county cont r i but ed $579,676 to the plan. Plan nenbers receiving benefits contributed $134, 289, or appr oxi vat el y 20 per cent of the total pr emi uns, through t heir required cont r i but i on ranging from $111 t o $135 per rmnt h for ✓ etiree -only coverage and between $212 to $291 for retiree and spouse coverage. The OPEB Plan assets are deposited in the Weld County OPEB P1 an Trust Fund. The empl oyer' s cont r but i ons t o the t rust fund are irrevocable, the assets of the trust are dedicated to providing benefits to retirees and their beneficiaries, and the assets are legally protected from t he enpl oyers creditors . Annual OPEB Cost and OPEB Obligation: Prior to January 1, 2007, the OPEB Plan was funded on a pay as you go basis . Begi nni ng January 1, 2007, the county's annual of her post e npl oyment benefit (OPEB) cost (expense) i s calculated based on the annual required contribution of the employer (ARC) , an amount determined in accor dance with the parameters of GASB St at ement 45. The ARC ✓ epresents a 1 evel of fundi ng t hat , i f paid on an ongoing basis, is proj ect ed t o cover normal cost each year and armrt i ze any unfunded actuarial 1 i abi 1 i t i es (or fundi ng excess) over a period not to exceed t hi r t y years . The pr i mar y assumption for the ARC cal cul at i on i s the 4% di s count rate. The as sumpt i ons currently include an annual heal t hcar e cost trend rate of 11% Liabilities are computed using the projected unit credit method. When applicable, the unfunded actuarial accrued liability has been arrnrt i zed over a closed 25 year per od. GASB' s standard all ows for the use of the Alternative 1Veasur ement lvbt hod to conput a OPEB cost and obligations for plans with less than 100 members. The Alternative 1Vbas ur event it hod is a calculation of the OPEB cost and obligation using a simplified approach that does not require the engagement of an actuary. The W1 d County Retiree Health OPEB plan had 88 members in 2012 and therefore calculations for the Meld County Retiree Health OPEB have been completed in accordance with GASB 45 Alternative 1Vbasureimnt it hod using t he projected unit credits net hodol ogy. This represents a change i n accounting policy from pr evi ous years when the OPEB cost and obl i gat i on were calculated based upon an actuarial valuati i on. Management considers the new calculation net hod to be preferable as an outside actuary is no 1 onger requi red to be engaged, resulting in a cost savings t o the County. Mir i t al and dependency status i s based on current status of covered participants. Other significant as sunpt i ons are made by County management based on knowl edge of applicable costs affecting the County. The following shows the component s of the County' s annual OPEB cost for the year, the amount actual 1 y cont r i but ed t o the pl an, and changes i n the county's net OPEB obl i gat i on t o V1 d County: COUNTY OF VELD STATE OF COLORADO Year Ended Decenber 31, 2012 Level Dollar Amortization Calculation on ARC under Projected Unit Credit Method on December 31, 2012 Amortization of UAAL over 25 years Normal cost at beginning of year Interest Annual Required Contribution (ARC) Interest Earned on Net 0PEB Asset 2012 Gross Annual Requi red Cont r i but i on Empl oyee Cont r i but i ons 2012 Net County ARC County Cont r i but i on Decrease in net OPEB obligation Begi nni ng OPEB obl i gat i on (asset ) Effect of change i n accounting policy Endi ng OPEB Obl i gat i on (asset ) $ 0 713,965 0 713, 965 (23, 156) 690,809 ( 134, 289) 556, 520 ( 579, 676) (23, 156) (1, 685, 635) 1,409,066 $ (299, 725) There is no unfunded actuarial accrued liability (UAAL) at the end of the year. A surplus of $299, 725 exists. Covered Participants as of January 1, 2013 Retired Enpl oyees Spouses of Ret i red Enpl oyees Three -Year Trend Information: Annual Requi red Fiscal Year End Cont r i but i on ( ARC) Decenber 31, 2010 $ 710, 071 Decenber 31, 2011 $ 710, 071 Decenber 31, 2012 $ 713, 965 61 11 72 Percent age of Net OPEB ARC Contributed Asset 218% $( 1, 157, 309) 161% $( 1, 685, 635) 100% $ (299, 725) 75 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Prior to January 1, 2007, the OPEB Plan was on a pay as you go funding basis. January 1, 2007, was the first time an actuarial accrued liability was cal cul at ed t o det erni ne the net OPEB obl i gat i on. The OPEB obl i gat i on as of Decenber 31, 2012 was $3, 222, 272 there were $3, 521, 997 in assets on Decenber 31, 2012 for no unfunded actuarial accrued liability (UAAL). All related pension obligation (assets) are recorded in the County's General fund. Funded Status and Funding Progress. The funded status of the plan as of December 31, 2012, was as follows: Actuarial Accrued Liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued l i ability (UAAL) Funded ratio (actuarial value of plan assets/AAL) No active enpl oyees are covered by the plan. $ 3, 222, 272 $ 3, 521, 997 $ (299, 725) 109. 30% Actuarial valuations involve estimates of the value of reported anvunt s and assumptions about the probability of events far into the future, and actuarially det er ni ned anvunt s are subject t o continual revision as actual results are compared to past expectations and new es t i nut es are trade about the future. The required schedule of fundi ng progress presents rail t i year t r end i of ornat i on about whet her the actuarial value of assets is increasing or decreasing over time r el at i ve to the actuarial accrued liability for benefits. The actuarial calculations are based on the types of benefits provided under the t er nos of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and nenbers to that point and reflect a long- t ex m perspective. The Veld County OPEB Plan Assets are accounted for in the Veld County OPEB Plan Trust Fund. An I RC Section 115 Trust has been established for t he Vie 1 d County OPEB P1 an Trust . Note 11 - Comri t nent s and Contingencies : Com fitments As of December 31, 2012 there were encumbrances carried forward to 2013 of $1, 356, 033 in the General fund, consisting of $386, 953 for general purchases and $228, 475 for engi neer i ng des i gns, and $740, 605 for school buses. The Public VWrks fund carried forward $888, 799 for road construction pr of ect s . I n the capital expenditures fund year - end pr of ect s under construction included $26, 326 for bui 1 di ng improvements, $28, 657 for a grader shed complex, $3, 683, 881 for crime lab design and construction, $87, 135 for dust control well and $4, 557, 195 gravel pi t des i gn. 76 COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Note 12 - Public Trustee: Pursuant t o an act of the Colorado General As sentl y, the Wl d County Public Trustee is to be deemed an agency of the County for the purpose of financial reporting. Related activity has been reported in the General Agency Fund, with the following activity identified strictly for the office of the Public Trustee as of and for the year ended December 31, 2012 Assets Liabilities Net Position Revenues Expenses $ 558, 248 110, 002 448, 246 582, 451 615, 949 The Public Trustee started a r et i r errient pl an in Decenber 2003. The plan i s a defined contribution pl an under I nt er nal Revenue Code section 401(IQ . The employer wi l l match errpl oyee cont ri but i ons up t o 8% of eligible compensation. 77 COUNTY OF VELD STATE OF COLORADO Year Ended Decenber 31, 2012 Note 13 - Non -Cash Activity in Social Services Fund Schedule of EBT Authorizations, Warrant Expenditures and Total Expenditures For the Year Ended December 31, 2012 A B C D E Program County EBT Authorizations County Share of Authorizations Total Refunds and Expenditures by County Warrant or Accrual County EBT Authorizations plus Expenditures by County Warrant (Col. A + Col. C) Total Expenditures (Col. B + Col. C) Old Age Pension 4,881,201 8,833 115,117 4,996,318 123,950 Low -Income Energy Assistance Program 1,260,010 - 199,447 1,459,457 199,447 Temporary Assistance for Needy Families 3,701,721 1,005,057 1,743,599 5,445,320 2,748,656 Administration 13,710 2,742 8,586,803 8,600,513 8,589,545 Trails/Child Welfare 9,419,864 1,898,368 10,427,411 19,847,275 12,325,779 Core Services 1,277,814 191,365 191,119 1,468,933 382,484 Aid to the Needy Disabled 1,126,619 169,645 (36,742) 1,089,877 132,903 IV -D Administration - - 3,091,985 3,091,985 3,091,985 CHATS/Child Care 3,248,150 381,852 572,131 3,820,281 953,983 General Assistance - - 590,203 590,203 590,203 Subtotal 24,929,089 3,657,862 25,481,073 50,410,162 29,138,935 Food Assistance 40,323,709 - (762) 40,322,947 (762) Grand Total 65,252,798 3,657,862 25,480,311 90,733,109 29,138,173 A. Welfare payment authorized by the Weld County Department of Social Services. These County authorizations are paid by the Colorado Department of Human Services by Quest debit cards or by electronic benefits transfer (EBT) B. County share of EBT authorizations. These amounts are settled monthly by a reduction of State cash advances to the County. C. Expenditures made by county warrants or other county payment methods. D. This represents the total cost of the welfare programs that are administered by Weld County. E. This total matches the expenditures on the Social Services Fund - Statement of Revenues, Expenditures and Changes in Fund Balances. 78 COUNTY OF VELD STATE OF COLORADO Year Ended Deceirber 31, 2012 Note 14 - Recent Pronouncements: I n June 2012 the Government al Accounting St andar ds Board i s sued GASB Statement No. 68 Accounting and Financial Reporting for Pensions, which r epl aces GASB No. 27, Accounting for Pensions by State and Local Government Employers, for the rms t government pensions . St at ement Na. 68 requires governrrent s pr ovi di ng defined benefit pensions t o recognize their long term obligation for pension benefits as a liability for the first ti ne, and t o rmr a comprehensively and comparably measure the annual cost of the pension benefits. The Statement also enhances account ability and transparency through revised and new note disclosures and required supplement ar y i of or mat i on (RSI ) . GASB Statement No. 68 is effective for years beginning after June 15, 2014 with effective changes nude to conply with the statement reported as adj ust went s t o pri or per ods. The effect t hat the adapt i on of GASB No. 68 wi 1 1 have on the County's f i nanci al statements has not been determent. 79 80 Required Supplementary Information Other Than MD&A COUNTY OF VELD STATE OF COLORADO Year Ended December 31, 2012 Schedule of Funding Progress - Retirement Plan Actuarial Val uat ion Uat e 1/1/06 1/1/07 1/1/08 1/1/09 1/1/2010 1/1/2011 1/ 1/2012 Actuarial Value of Assets (a) $103, 979, 296 $112, 874, 087 $125, 879, 138 $112, 079, 550 $131, 288, 037 $134, 917, 364 $135, 173, 969 Schedul e Year Ended December 31 Actuarial Accrued Liability ( AAL) Entry Age (b) $136, 792, 785 $150, 145, 842 $167,011,647 $176, 927, 890 $186, 015, 431 $193, 269, 672 $203, 114, 167 Unfunded AAL ( UAAL) (b -a) $32, 813, 489 $37, 271, 755 $41, 132, 509 $64, 848, 340 $54, 727, 394 $58, 352, 308 $67, 940, 198 of Employer Cont r i but i Annual Requi red Cont r i but i on'') ons Funded Ratio ( a/ b) 76. 0% 75. 2% 75. 4% 63. 3% 70. 6% 69. 8% 66. 55% Retir Actual Cont r i but i on Covered Payroll (c) $41, 529, 717 $44, 210, 410 $49, 967, 777 $53, 988, 779 $53, 484, 492 $53, 415, 982 $55, 871. 701 ement P1 an Percent age Cont r i but ed UAAL as a Percent age of Covered Payroll [b-a)/c] 79. 0% 84. 3% 82. 3% 120. 1% 102. 3% 109. 2% 121. 60% 2004 2005 2006 2007 2008 2009 2010 2011 2012 $3, 125, 337 $4, 236, 858 $4, 236, 858 $4, 408, 097 $4, 928, 519 $7, 087, 011 $5, 417, 362 $6, 013, 818 $6, 138, 685 (')Requi red cont r i but i on at begi nni $2, 234, 518 $2, 779, 636 $3, 205, 422 $3, 804, 640 $4, 184, 885 $4, 962, 224 $4, 885, 660 $6, 706, 758 $5, 970, 039 ng of year. 71.5% 65. 6% 75. 7% 83. 6% 84. 9% 70. 0% 90. 2% 111. 5% 97. 25% 81 COUNTY OF VELD STATE OF COLORADO Year Ended Decerrber 31, 2012 Schedule of Funding Progress - Other Post Employment Benefit s Actuarial Val uat ion Dat e Actuarial Value of Assets (a) $ 1, 831, 353 $ 1, 856, 115 $ 2, 550, 854 $ 2, 784, 877 $ 3,521,997 Actuarial Accrued Liability ( AAL) Entry Age (b) $ 8, 346, 023 $ 8, 346, 023 $ 8, 346, 023 $ 8, 346, 023 $ 3, 222, 272 Unfunded AAL ( UAAL) (b -a) $ 6, 514, 670 $ 6, 489, 908 $ 5, 795, 169 $ 5, 561, 146 $ (299, 725) Funded Ratio (a/ b) 21. 9% 22. 2% 30. 1% 33. 4% 109.3% Schedul e of Errpl oyer Cont r i but ions - Other Post Errpl oynent Benefits Year Ended December 31 Annual Requi red Cont r i but i on(i) Actual Cont r i but i on Percent age Cont r i but ed 2010 2011 2012 (1)Requi red $710, 071 $710, 071 $713, 965 $1, 364, 055 $960, 700 $713, 965 contribution at begi nni ng of year. 192. 135. 100. 1% 3% 0% 82 COUNTY OF WELD STATE OF COLORADO Required Supplementary Information Modified Approach for Infrastructure Assets Weld County prepares an annual gravel road plan. In doing this each of the sections of gravel roads has been evaluated by supervisors. They use the State guidelines as out lined in Section 43 -2 -120(5)(a -b), C.R.S. 1973, which is stated below. Since gravel roads condition can change quickly based on weather conditions the road plan may have to be modified to take care of such problems. Therefore, an official road maintenance system is difficult to put in place. It is the County's policy to maintain the roads in fair or better condition. The County's gravel plan details the replacement and maintenance schedule required for the gravel roads, by segment, under ideal weather conditions based on traffic and location. The day to day conditions of the gravel roads is continually monitored by the County's Motor Grader division whose sole responsibility is to maintain the condition of the gravel roads, the following table details the condition assessment in total miles and percentage reported at the end of the last three fiscal periods. Condition Good Fair Poor Miles 1821 377 64 2012 of Total 80.5% 16.7% 2.8% Miles 1574 658 56 Comparison of Estimated -to -Actual Maintenance/Preservation 2011 % of Total 68.8% 28.7% 2.5% 2008 2009 2010 2011 Miles 1827 456 47 2010 % of Total 78.4% 19.6% 2.0% 2012 2013 Estimated $ 2,666,172 $ 2,947,356 $ 2,915,000 $ 3,160,000 $ 3,132,000 $ 3,360,875 Actual $ 2,169,920 $ 1,572,615 $ 3,046,576 $ 2,683,326 $ 3,696,246 Gravel Roads - Surface Condition Rating Criteria Section 43-2-120 (5)(a -b), C.R.S. 1973, gives the following guidelines pertaining to the condition criteria on gravel roads. Good Surface Condition $ There is adequate width for safe passage of large vehicles. $ Graded to a uniform cross-section, having a crown and ditches to provide good drainage. $ The surface is smooth with no washboards, rutting or soft areas; vehicles can safely travel at the posted speed limit. $ There is adequate gravel uniformly spread across the surface. $ During periods of wet weather, roads will support traffic. Fair Surface Conditions $ Adequate width for safe passage of cars and pickup trucks. $ Cross-section may vary; the crown is not consistent; ditches and drainage are not adequate. $ The surface has occasional washboards and ruts but irregularities do not interfere with safe vehicle operation at the speed limit. $ Gravel is present, but lacking in the wheel paths or in short stretches. $ During periods of wet weather, puddles develop; the road is slippery but will support normal traffic. Poor Surface Condition $ Two cars cannot safely pass. $ Cross-section varies. There is no crown or ditches, and water does not drain from the road. $ The surface has washboards, ruts, soft areas; vehicles must slow to less than the speed limit. $ Gravel is sparse or does not exist. $ During periods of wet weather, cars cannot safely travel. 83 84 COUNTY OF WELD STATE OF COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis REVENUES Taxes: General property taxes Tobacco products Penalties & interest Total Taxes Licenses and Permits Liquor licenses Planning permits Building permits Electrical permits Total Licenses and Permits Intergovernmental: Federal grants Payment in lieu of taxes State grants Other governmental units Cities and towns Total Intergovernmental Charges for Service: Plan checking fees Charges for services Sale of supplies Parking Total Charges for Services Fines and Forfeitures: Property forfeitures/evidence Fines (drunk drivers) Total Fines and Forfeitures Miscellaneous: Miscellaneous Interest Rents from buildings Royalties Total Miscellaneous Original Final $ 56,184,966 $ 56,184,966 - 110,000 56,184,966 56,294,966 5,000 225,000 800,000 150,000 5,000 495,000 1,400,000 270,000 1,180,000 2,170,000 3,000 3,270,126 645,000 314,240 239,000 3,000 4,703,126 886,000 314,240 4,232,366 6,145,366 250,000 3,456,920 115,500 25,000 550,000 3,444,851 123,500 25,000 3,847,420 4,143,351 479,110 479,110 479,110 479,110 1,438,947 1,400,000 503,896 1,500,000 4,776,823 1,400,000 503,896 4,842,843 6,680,719 Actual Variance $ 55,973,256 $ (211,710) 117,858 7,858 91,611 91,611 56,182,725 (112,241) 6,698 488,350 1,670,066 322,253 2,487,367 646,169 2,157 3,575,544 562,603 192,637 1,698 (6,650) 270,066 52,253 317,367 407,169 (843) (1,127,582) (323,397) (121,603) 4,979,110 (1,166,256) 668,815 3,425,424 131,056 20,410 4,245,705 3,725 307,491 311,216 3,445,092 1,165,339 518,317 118,815 (19,427) 7,556 (4,590) 102,354 3,725 (171,619) (167,894) (1,331,731) (234,661) 14,421 5,128,748 (1,551,971) COUNTY OF WELD STATE OF COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis Original Final Actual Variance REVENUES (CONTINUED) Fees: Fee account Treasurer's fees Cable fees Total Fees Total Revenues EXPENDITURES General Government: Office of the Board County Attorney Planning and zoning Clerk to the Board County Clerk Elections and registration Motor vehicle County Treasurer County Assessor Maintenance of buildings/grounds County Council District Attorney Juvenile Diversion Grant Adult Diversion Victim Assistance MYAT - Probation Financial administration General accounting Purchasing Personnel Geographical Information Systems Computer Services Inovation & Technology Project Printing and Supply Transportation Smart Energy Project Total General Government 8,107,000 50,000 60,000 9,137,000 50,000 60,000 8,217,000 9,247,000 78, 983, 705 85,160, 512 9,341,323 36,305 52,345 204,323 (13,695) (7,655) 9,429,973 182,973 82,764,844 (2,395,668) 782,727 920,227 899,504 20,723 784,292 836,809 819,124 17,685 1,467,149 1,545,083 1,535,840 9,243 302,208 305,208 285,640 19,568 933,096 996,231 1,085,032 (88,801) 1,994, 087 1,494, 087 1,134,195 359,892 1,921, 501 2,061, 501 2,063, 431 (1,930) 843,817 932,284 791,714 140,570 2,412,179 2,833,013 2,537,212 295,801 5,825,663 5,941,430 5,841,496 99,934 46,919 46,919 14,893 32,026 4,893,934 4,895,403 4,820,192 75,211 95,650 97,150 86,712 10,438 - 67,958 57,599 10,359 699,025 1,429,025 1,324,874 104,151 - 53,000 51,946 1,054 628,521 570,971 511,418 59,553 662,086 662,586 625,986 36,600 159,850 159,850 159,336 514 744,953 801,760 737,272 64,488 209,121 227,121 223,719 3,402 2,052,705 2,562,705 2,586,137 (23,432) - 320,000 315,405 4,595 398,944 418,944 353,829 65,115 454,507 454,507 122,699 331,808 - - 575,416 (575,416) 28, 312, 934 30, 633, 772 29, 560, 621 1,073,151 (CONTINUED) COUNTY OF WELD STATE OF COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis EXPENDITURES (CONTINUED) Public Safety Sheriff administration Crime control and investigations Traffic control Municipal Service Contracts Task force Regional forensic laboratory Communications services Criminal justice Justice Services County Coroner Correctional administration Community correction Building inspection Office of emergency management Waste water management Animal control Pest/weed control Victim Advocates Total Public Safety Public Works: General engineering Extension services Veteran office Airport Total Public Works Public Health and Welfare: Mental health Developmentally disabled Seniors program Economic development A Kid's Place Total Public Health and Welfare Culture and Recreation: Missile site park Parks and Trails County fair Total Culture and Recreation Original Final 1,825,512 6,921,252 1,103,606 809,146 176,205 300,784 2,323,488 955,902 539,160 733,835 21, 050, 998 2,626,220 1,031,210 266,383 10,000 338,821 503,625 158,196 1,863,321 7,213,252 1,134,606 959,146 176,205 371,784 2,792,092 1,067,026 499,651 801,735 22,117, 783 2,626,220 1,136,210 275,783 10,000 338,821 503,625 177,196 41,674,343 44,064,456 2,166,960 342,535 77,170 3,204,960 350,263 77,170 2,586,665 3,632,393 183,225 38,225 12,500 89,700 6,780 330,430 78,536 29,000 308,945 183,225 38,225 12,500 144,700 6,780 385,430 86,536 29,000 308,945 Actual Variance 1,846,482 16,839 7,317,652 (104,400) 1,049,445 85,161 918,209 40,937 171,618 4,587 414,509 (42,725) 2,550,337 241,755 1,079,056 (12,030) 461,962 37,689 813,260 (11,525) 21, 870,140 247,643 2,552,823 73,397 1,078,417 57,793 239,526 36,257 8,905 1,095 256,624 82,197 396,658 106,967 148,789 28,407 43,174,412 890,044 2,033,679 372,938 65,446 1,171,281 (22,675) 11,724 2,472, 063 1,160,330 159,700 38,225 12,500 119,200 6,780 336,405 70,563 29,000 807,143 23,525 25,500 49,025 15,973 (498,198) 416,481 424,481 906,706 (482,225) COUNTY OF WELD STATE OF COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis EXPENDITURES (CONTINUED) Miscellaneous: Other Refund of Prior Years Retierment Benefii Building rents Total Miscellaneous Capital Outlay: Capital purchases Total Expenditures Other Financing Source (Use) Transfers - In: Non -Departmental Transfers - Out: Appropriation Grants -In -Aid Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year Original Final 582,576 82,395 1,191,576 1,000,000 82,395 664,971 2,273,971 1,816,453 1,658,420 75,802,277 83,072,923 85,000 3,469,661 85,000 6,948,351 (3,384,661) (6,863,351) (203,233) (4,775,762) Actual 1,123,386 1,000,000 59,917 2,183,303 794,443 Variance 68,190 22,478 90,668 863,977 79,427,953 3,644,970 3,624,699 3,539,699 6,948,351 (3,323,652) 3,539,699 13,239 4,789,001 21,114, 836 21,114, 836 21,114, 836 $ 20,911,603 $ 16,339,074 $ 21,128,075 $ 4,789,001 89 COUNTY OF WELD STATE OF COLORADO Public Works Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis REVENUES: Taxes: General property taxes Severance Tax Specific ownership taxes Penalties & Interest Total Taxes Licenses and Permits Moving permits Intergovernmental: Grazing act Payment in lieu of taxes Grants Motor vehicle registration fees Highway user tax fund Total Intergovernmental Charges for Services: Charges for services Miscellaneous: Earnings on deposits Special assessments Royalties Miscellaneous Total Miscellaneous Fees: Other fees Total Revenues Original Final $ 6,987,191 1,810,000 6,330,000 15,127,191 400,000 90,000 20,000 390,000 9,850,000 10,350,000 2,717,000 2,717,000 28,594,191 $ 6,987,191 2,292,000 6,330,000 15,609,191 400,000 90,000 20,000 1,923,000 390,000 9,850,000 12,273,000 12,000,000 2,911,000 14,911,000 43,193,191 Actual $ 6,962,458 2,292,174 7,301,021 11,596 16,567,249 480,728 71,373 35,175 357,384 328,017 9,693,985 10,485,934 737,516 37,574 5,853 12,083,892 1,164,127 13,291,446 857,958 42,420,831 Variance $ (24,733) 174 971,021 11,596 958,058 80,728 (18,627) 15,175 (1,565,616) (61,983) (156,015) (1,787,066) 737,516 37,574 5,853 83,892 (1,746,873) (1,619,554) 857,958 (772,360) 90 COUNTY OF WELD STATE OF COLORADO Public Works Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis EXPENDITURES Public Works Bridge construction Maintenance of condition Maintenance support Trucking division Mining division Administration Pavement Management Other public works Total Public Works Intergovernmental: Grants-in-aid to cities/towns Capital outlay Total Expenditures Other Financing Sources (Uses): Transfers - Out: Capital Motor Pool Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year Original Final 3,771,844 6,228,864 1,280,808 3,932,886 1,543,597 716,934 5,763,656 8,009,799 31,248,388 1,452,940 32,701,328 (4,107,137) 30,192,524 $ 26,085,387 4,274,844 6,878,864 2,630,808 4,257,886 2,553,597 781,872 6,433,656 13,792,299 41,603,826 1,452,940 43,056,766 1,200,000 2,300,000 (3,500,000) (3,363,575) 30,192,524 $ 26,828,949 Actual 4,340,943 6,546,523 1,365,390 4,143, 377 1,067,822 1,026,589 5,877,960 9,562,702 33,931,306 1,443,501 10,830 35,385,637 1,200,000 2,300,000 (3,500,000) 3,535,194 30,192,524 Variance (66,099) 332,341 1,265,418 114,509 1,485,775 (244,717) 555,696 4,229,597 7,672,520 9,439 (10,830) 7,671,129 6,898,769 $ 33,727,718 $ 6,898,769 91 COUNTY OF WELD STATE OF COLORADO Social Services Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis REVENUES Taxes: General property taxes Penalties & Interest Total Taxes Intergovernmental: Welfare Miscellaneous: Miscellaneous Total Miscellaneous Total Revenues EXPENDITURES Public Health and Welfare: Administrative - regular Administrative - IV -D Food stamps Other Programs General assistance TANF AND - State Child welfare Day care Original Final $ 9,995,400 $ 9,995,400 9,995,400 9,995,400 16,701,767 26,697,167 6,662,400 3,065,000 180,000 15,000 2,332,350 20,000 12,225,000 1,114,917 20,816,767 256,551 256,551 31,068,718 9,941,579 3,065,000 250,000 15,000 2,332,350 20,000 12,725,000 1,114,917 Actual $ 9,957,176 15,347 9,972,523 20, 364, 388 110 110 30,337,021 7,710,974 3,091,988 (762) 467,124 587,984 2,748,658 132,903 12,325,785 953,985 Variance $ (38,224) 15,347 (22,877) (452,379) (256,441) (256,441) (731,697) 2,230,605 (26,988) 762 (217,124) (572,984) (416,308) (112,903) 399,215 160,932 92 COUNTY OF WELD STATE OF COLORADO Social Services Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED): OAP - A Core services Administrative - LEAP Total Public Health and Welfare 140,000 410,000 515,500 140,000 410,000 515,500 26,680,167 30,529,346 123,951 382,485 199,447 16,049 27,515 316,053 28,724,522 1,804,824 Capital Outlay 17,000 17,000 413,651 (396,651) Total Expenditures 26,697,167 30,546,346 29,138,173 1,408,173 Net Change in Fund Balance - 522,372 1,198,848 676,476 Fund Balances at Beginning of Year 3,816,527 3,816,527 3,816,527 Fund Balances at End of Year $ 3,816,527 $ 4,338,899 $ 5,015,375 $ 676,476 93 COUNTY OF WELD STATE OF COLORADO Human Services Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis Original Final Actual Variance REVENUES Intergovernmental: Federal grants State grants Total Intergovernmental Charges for Services: Charges for services Total Charges for Services Miscellaneous: Donations from private sources Total Miscellaneous Total Revenues EXPENDITURES Economic Assistance: Human resources general fund Job service Summer job hunt Employment first TANF WIA administration WIA adult programs WIA youth programs 10% Discretionary Grant WIA planning WIA dislocated worker Human resources lab pool UI training program $ 4,473,827 $ 5,563,827 $ 4,938,752 $ (625,075) 2,107,256 2,268,256 1,717,775 (550,481) 6,581,083 7,832,083 395,000 480,000 395,000 480,000 145,000 145,000 145,000 145,000 7,121,083 8,457,083 662,480 40,000 280,000 717,256 160,165 402,418 573,330 41,972 25,000 465,742 325,000 345,421 6,160 932,480 40,000 381,000 717,256 160,165 1,022,418 573,330 41,972 25,000 665,742 410,000 345,421 6,656,527 (1,175,556) 234,317 (245,683) 234,317 (245,683) 146,882 1,882 146,882 1,882 7,037,726 (1,419,357) (14,964) 960,984 39,954 332,762 510,737 157,707 639,504 48 7, 541 25,803 624,454 384,763 321,911 21,124 (28,504) 46 48,238 206,519 2,458 382,914 85,789 16,169 25,000 41,288 25,237 23,510 94 COUNTY OF WELD STATE OF COLORADO Human Services Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budget - GAAP Basis EXPENDITURES (CONTINUED): One stop AAA administration OAA title III -B OAA title III -C1 congregate OAA title III -C2 OAA in home support Health services AAA elder abuse AAA ombudsman Single entry point Wellspring/Health fund NCMC Grant Vale Grant AAA case management AAA state funds Part E family caregiver support CSBG Total Economic Assistance Capital Outlay: Human resources general fund TANF Employment first Total Capital Outlay Total Expenditures Other Financing Sources (Uses): Transfers - In: OAA area agency Total Other Financing Sources Net Change in Fund Balance Original Final 238,556 67,460 274,078 470,100 34,000 13,182 41,668 2,038 7,098 1,310,898 7,500 12,000 416,358 81,884 117,830 238,556 67,460 274,078 470,100 34,000 13,182 41,668 2,038 7,098 1,310,898 7,500 12,000 476,358 81,884 117,830 7,133,434 8,475,594 7,133,434 8,475,594 12,351 12,351 12,351 12,351 Fund Balances at Beginning of Year 1,341,201 (6,160) 1,341,201 Fund Balances at End of Year $ 1,341,201 $ 1,335,041 Actual 220,802 57,678 275,494 440,258 23,395 8,216 37,066 1,516 4,391 1,171,910 2,346 3,161 12,392 3,268 448,676 90,092 126,774 7,398,591 21,158 14,511 14,511 50,180 7,448,771 12,351 12,351 (398,694) 1,341,201 $ 942,507 Variance 17,754 9,782 (1,416) 29,842 10,605 4,966 4,602 522 2,707 138,988 (2,346) 4,339 (392) (3,268) 27,682 (8,208) (8,944) 1,077,003 (21,158) (14,511) (14,511) (50,180) 1,026,823 (392,534) $ (392,534) 95 COUNTY OF WELD STATE OF COLORADO Contingent Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted REVENUES Taxes: General property taxes Total Taxes Total Revenues EXPENDITURES Miscellaneous Total Expenditures Transfers - Out: Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year Original Final Actual Variance $ 8,000,000 $ 8,000,000 $ 7,977,517 $ (22,483) 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 7,977,517 7,977,517 7,977,517 20,041,119 20,041,119 20,041,119 (22,483) (22,483) 8,000,000 8,000,000 7,977,517 $ 20,041,119 $ 20,041,119 $ 28,018,636 $ 7,977,517 96 Supplemental Information COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2012 NON -MAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds account for taxes or other earmarked revenue of the County that finances specified activities as required by law or administrative action. Conservation Trust Fund: The Conservation Trust Fund accounts for revenue received from the State of Colorado to be used for the acquisition, development and maintenance of new and existing conservation sites within Weld County. The funds are derived from the Colorado State Lottery. Public Health Fund: The Weld County Public Health Department provides health services to County residents. The fund reflects revenue and expenditures for health care, health education, health monitoring and other related activities. Solid Waste Fund: This fund accounts for revenue received from a surcharge on dumping fees at solid waste disposal sites for the purpose of combating environmental problems and for the further improvement and development of landfill sites within the County. Law Enforcement Authority Funds These funds accounts for the revenue of the law enforcement authority. The authority is a taxing unit created by the County to provide additional law enforcement services by the County Sheriff to residents in a developed unincorporated area of the County 97 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2012 PROPRIETARY FUNDS Enterprise Funds Enterprise funds account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has d ecided that periodic determination or revenue earned, expenses incurred, and/or net income is appropriated for capital maintenance, public policy, management control, accountability or other purposes. Paramedic Services Fund: This fund accounts for the ambulance services provide d to Weld County. On May 7, 2012 ownership of the Weld County Paramedic Services was transferred to North Colorado Medical Center and to Banner Health for operation. Internal Service Funds Motor Vehicle Fund: This fund accounts for the revenue and costs generated by equipment and vehicles rented to various departments of the County. Health Insurance Fund: This fund accounts for the County's self -insured dental and vision coverage. Revenue is generated from contributions from the employees of the County. Disbursements are made after insured claims have been verified and approved. Insurance Fund: This fund accounts for all insurance costs for the County, except health insurance. This program is a combination of insured risks and protected self-insurance risks. Phone Services Fund: This fund accounts for all phone costs provided to the County and other outside agencies on a cost - reimbursement basis. 98 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2012 FIDUCIARY FUNDS Agency Funds Agency funds account for assets held by the County as an agent for individuals, private organizations and/or other governments. General Agency Fund: This fund account for all monies collected (principally tax collections) by the Weld County Treasurer for various other local governmental units within the County. Payroll Agency Fund: This fund accounts for the accumulation of County payrolls and related withholdings. Disbursements are made to the appropriate financial institutions through the payroll direct deposit system and the various vendors for the withholdings. Employee Flexible Spending: This fund accounts for Weld County's Section 125, voluntary tax-sheltered plan, which the County administers directly. Employee contributions to the plan are refunded upon submission of documentation for un-reimbursed claims. 99 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2012 COMPONENT UNITS Component units are tied to the County with some board control. They operate as a separate fund but the information is discretely presented. Housing Authority Fund: This fund works with all the low income citizens of Weld County to help with rent assistance or housing repair. E-911 Authority Fund: This fund operates under state statute, Article 11 of Title 29, C.R.S.. They are responsible for administering the operations of the 911 emergency telephone service program in Weld County 100 101 COUNTY OF WELD STATE OF COLORADO Combining Balance Sheet Non -Major Governmental Funds December 31, 2012 Conservation Public Health Solid Waste Trust Fund Fund Fund ASSETS Cash and investments Receivables (net of allowance for uncollectibles): Current property taxes Delinquent property taxes Accounts Due from other County funds Inventories Other assets Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued liabilities Other liabilities Unearned revenue Unexpended grant revenue Total Liabilities Fund Balances: Nonspendable Restricted Committed Total Fund Balances Total Liabilities and Fund Balances $ 324,200 $ 1,096,698 $ 1,014,387 728,353 8,955 597 $ 324,200 $ 1,834,603 $ 1,014,387 324,200 111,084 231,056 104,885 2,387 447,025 2,387 597 1,386,981 1,012,000 324,200 1,387,578 1,012,000 $ 324,200 $ 1,834,603 $ 1,014,387 102 Total Law Nonmajor Enforcement Governmental Authority Fund Funds $ - $ 2,435,285 728,353 8,955 597 $ - $ 3,173,190 113,471 231,056 104,885 449,412 597 1,711,181 1,012,000 2,723,778 $ - $ 3,173,190 103 COUNTY OF WELD STATE OF COLORADO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non -Major Governmental Funds For the fiscal year ended December 31, 2012 Conservation Public Health Solid Waste Trust Fund Fund Fund REVENUES: Taxes: Taxes Intergovernmental Charges for services Miscellaneous Total Revenues EXPENDITURES: Current: Public Safety Public health and welfare Culture and recreation Capital outlay Total Expenditures 411,891 2,424 414,315 $ - $ 2,704,108 1,564,488 271,198 999,619 4,5391794 999,619 - - 79,927 - 7,795,976 - 379,484 - - 181,135 379,484 7,977,111 79,927 Excess of Revenues Over (Under) Expenditures 34,831 (3,437,317) 919,692 Other Financing Sources (Uses): Transfers - In Transfers - Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year 3,007,909 592,909 3,007,909 (592,909) 34,831 (429,408) 326,783 289,369 1,816,986 685,217 Fund Balances at End of Year $ 324,200 $ 1,387,578 $ 1,012,000 104 Law Enforcement Authority Funds 16,191 16,191 Total Nonmajor Governmental Funds $ 16,191 3,115, 999 2,564,107 273,622 5,969,919 96,118 7,795,976 379,484 181,135 8,452,713 (2,482,794) 3,007,909 592,909 2,415,000 (67,794) 2,791,572 $ 2,723,778 105 COUNTY OF WELD STATE OF COLORADO Capital Expenditures Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted REVENUES General property taxes Penalties & interest Total Taxes Fees Earnings on deposits Total Revenues EXPENDITURES Capital Outlay: Buildings Total Expenditures Other Financing Sources (Uses): Transfers - In: General Fund Public Works Total Other Financing Sources Net Change in Fund Balance Fund Balance at Beginning of Year Fund balance at End of Year Original Final Actual Variance $ 7,200,000 $ 7,200,000 $ 7,175,832 $ (24,168) 11,908 11,908 7,200,000 300,000 100,000 7,600,000 7,200,000 300,000 100,000 7,600,000 9,525,965 19,575,965 9,525,965 19,575,965 3,350,000 1,200,000 4,550,000 (1,925,965) (7,425,965) 11,568,938 7,187,740 104,250 136,152 7,428,142 (12,260) (195,750) 36,152 (171,858) 6,230,413 13,345,552 6,230,413 13,345,552 3,350,000 1,200,000 4,550,000 5,747,729 13,173,694 11,568,938 11,568,938 $ 9,642,973 $ 4,142,973 $ 17,316,667 $ 13,173,694 106 COUNTY OF WELD STATE OF COLORADO Conservation Trust Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Original Final Actual Variance REVENUES Intergovernmental: State lottery Miscellaneous: Earnings on deposits Total Revenues EXPENDITURES Culture and Recreation: Land improvements Capital Expenditures Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year Fund balances at End of Year $ 382,500 $ 382,500 $ 411,891 $ 29,391 4,500 4,500 2,424 (2,076) 387,000 387,000 379,484 7,516 414,315 27,315 379,484 379,484 7,516 - 7,516 387,000 387,000 379,484 7,516 34,831 289,369 289,369 289,369 34,831 $ 289,369 $ 289,369 $ 324,200 $ 34,831 107 COUNTY OF WELD STATE OF COLORADO Public Health Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Original Final Actual Variance REVENUES Intergovernmental: State grants Total Intergovernmental Charges for Services: Charges for services Total Charges for Services Miscellaneous: Fees and fines Other Donations Total Miscellaneous Total Revenues EXPENDITURES Public Health and Welfare: Public health administration Health education Nursing Environmental health Public Health Preparedness Total Public Health and Welfare Capital Outlay: Administration Health education Nursing Environmental health Public Health Preparedness Total Capital Outlay Total Expenditures Other Financing Sources (Uses): Transfers - In: Non Departmental Total Other Financing Sources Net Change in Fund Balance $ 2,950,923 $ 3.000,923 $ 2,704,108 $ (296,815) 2,950,923 3,000,923 2,704,108 1,222,926 1,222,926 1,222,926 1,222,926 6,000 13,000 29,900 6,000 13,000 29,900 48,900 48,900 4,222,749 4,272,749 182,000 1,048,630 4,081,610 2,589,806 285,922 184,803 1,048,630 4,083,310 2,590,506 290,622 8,187,968 8,197,871 7,000 8,500 15,200 162,700 (296,815) 1,564,488 341,562 1,564,488 341,562 7,875 233,301 30,022 1,875 220,301 122 271,198 222,298 4,539,794 267,045 169,766 978,720 3,913,609 2,484,685 249,196 15,037 69,910 169,701 105,821 41,426 7,795,976 401,895 9,965 3,346 13,724 154,100 (2,965) 5,154 1,476 8,600 193,400 181,135 12,265 8,187,968 8,391,271 3,965,219 3,965,219 Fund Balances at Beginning of Year 1,816,986 7,977,111 414,160 3,007,909 3,007,909 3,007,909 3,007,909 (1,110,613) (429,408) 681,205 1,816,986 1,816,986 Fund Balance at End of Year $ 1,816,986 $ 706,373 $ 1,387,578 $ 681,205 COUNTY OF WELD STATE OF COLORADO Solid Waste Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Original Final Actual Variance REVENUES Landfill surcharge Total Revenues EXPENDITURES Miscellaneous: Solid waste Total Expenditures Other Financing Sources (Uses): Transfers - Out: General Fund Health department Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balances at Beginning of Year $ 685,000 $ 685,000 $ 999,619 $ 314,619 685,000 685,000 92,091 92,091 92,091 92,091 85,000 507,909 (592,909) 85,000 507,909 999,619 314,619 79,927 12,164 79,927 12,164 85,000 507,909 (592,909) (592,909) 326,783 326,783 685,217 685,217 685,217 Fund Balances at End of Year $ 685,217 $ 685,217 $ 1,012,000 $ 326,783 109 COUNTY OF WELD STATE OF COLORADO Bebee Draw Law Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes Specific ownership taxes Penalties & Interest Total Revenues EXPENDITURES Miscellaneous Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year $ 12,320 $ 12,320 $ 12,320 $ - 750 750 1,068 318 - 12 12 13,070 13,070 13,400 330 13,070 13,070 13,400 (330) 13,070 13,070 13,400 (330) $ - $ $ - $ 110 COUNTY OF WELD STATE OF COLORADO Pioneer Community Law Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes Specific ownership taxes Penalties & Interest Total Revenues EXPENDITURES Miscellaneous Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year $ 1,287 $ 1287 $ 1,313 $ 26 - - 22 22 - - 4 4 1,287 1,287 1,287 1,287 1,287 1,287 $ - $ 1,339 52 1,339 (52) 1,339 (52) $ - $ III COUNTY OF WELD STATE OF COLORADO South West Law Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes Total Revenues EXPENDITURES Miscellaneous Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year $ 1,429 $ 1,429 $ 1,452 $ 23 1,429 1,429 1,429 1,429 1,429 1,429 $ - $ 1,452 23 1,452 (23) 1,452 (23) $ - $ 112 COUNTY OF WELD STATE OF COLORADO Housing Authority Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted REVENUES Intergovernmental: Federal Grants State Grants Total Intergovernmental Miscellaneous: Earnings on deposits Miscellaneous Total Miscellaneous Total Revenues EXPENDITURES Rent assistance Supplies Depreciation Total Expenditures Original Final 2,757,346 2,757,346 2,575,346 2,575,346 2,757,346 2,575,346 2,299,653 260,788 2,560,441 Net Change in Fund Balance 196,905 Fund Balances at Beginning of Year 2,299,653 260,788 2,560,441 14,905 Fund Balances at End of Year $ 196,905 $ Actual 2,443,881 2,443,881 9,562 99,033 108,595 2,552,476 2,341,040 316,459 1,024 2,658,523 (106,047) 2,582,093 14,905 $ 2,476,046 Variance (131,465) (131,465) 9,562 99,033 108,595 (22,870) (41,387) (55,671) (1,024) (98,082) (120,952) 2,582,093 $ 2,461,141 113 COUNTY OF WELD STATE OF COLORADO E-911 Authority Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Original Final Actual Variance REVENUES Miscellaneous: Earnings on deposits Charge for service Total Revenue EXPENDITURES Depreciation Purchased services Supplies Total Expenditures Net Change in Fund Balance $ 50,000 $ 50,000 $ 20,087 $ (29,913) 2,150,000 2,150,000 2,270,819 120,819 2,200,000 2,200,000 362,092 1,628,045 92,300 362,092 1,628,045 92,300 2,082,437 2,082,437 117,563 117,563 Fund Balances at Beginning of Year 5,082,525 2,290,906 90,906 439,596 1,661,121 32,120 (77,504) (33,076) 60,180 2,132,837 (50,400) 158,069 40,506 5,082,525 5,082,525 Fund Balances at End of Year $ 5,200,088 $ 5,200,088 $ 5,240,594 $ 40,506 114 115 The public report burden for this information collection is estimated to average 380 hours annually. Financial Planning 02/01 Form # 350-050-36 LOCAL HIGHWAY FINANCE REPORT City or County: County YEAR ENDING : December 2012 This Information From The Records Of County of Weld Prepared By: Barbara Connolly Phone: (970) 356-4000 X 4445 I. DISPOSITION OF HIGHWAY -USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM 1. Total receipts available A. Local Motor -Fuel Taxes PURPOSES B. Local Motor -Vehicle Taxes , III. DISBURSEMENTS AND C. Receipts from State Highway- User Taxes FOR STREET PURPOSES D. Receipts from Federal Highway Administration ROAD 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes II. RECEIPTS FOR ROAD AND STREET ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway -user taxes 1. Capital outlay (from page 2) 22,319,472 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 13,423,644 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 2. General fund appropriations b. Snow and ice removal 449,268 3. Other local imposts (from page 2) 14,280,928 c. Other 223,165 4. Miscellaneous local receipts (from page 2) 15,361,795 d. Total (a. through c.) 672,433 5. Transfers from toll facilities 4. General administration & miscellaneous 2,470,090 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 38 885 639 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) 0 a. Interest 7. Total (1 through 6) 29,642,723 b. Redemption B. Private Contributions c. Total a. + b. 0 C. Receipts from State government (from page 2) 2. Notes: 12,671,560 a. Interest D. Receipts from Federal Government from page 2) b. Redemption 106,548 c. Total (a. + b.) 0 3. Total (1.c + 2.c) 0 E. otal recei i is (A.7 + B + C + D) 42,420,831 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 38,885,639 IV. LOCAL HIGHWAY (Show all entries DEBT STATUS at par) Opening Debt Amount Issued Redemptions Closing Debt A. Bonds Total 0 1. Bonds efundin Portion B. otes ota ) ) V. LOCAL ROAD AND STREET FUND BALANCE A. Beginning Balance I B. Total Receipts . sbursement � Total Di38,885,6391 D. Ending Balance E. Reconciliation 30,192,526 42,420,831 I 33,727,718 (0) Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE 1 (Next Page) 116 2012 Local Highway Finance Report.xls LOCAL HIGHWAY FINANCE REPORT STATE: Colorado YEAR ENDING (mm/yy): December 2012 II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM AMOUNT ITEM AMOUNT A.3. Other local im osts: A.4. Miscellaneous local recei i ts: a. Property Taxes and Assessments 6,979,907 a. Interest on investments 37,574 b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 737,516 5. Specific Ownership &/or Other 7,301,021 g. Other Misc. Receipts 1,338,686 6. Total (1. through 5.) 7,301,021 h. Other 13,248,019 c. Total a. + b. 14,280,928 (Ca forward to .a_e 1) i. Total a. through h. 15,361,795 (Ca forward to .a_e 1) ITEM AMOUNT ITEM AMOUNT C. Recei i ts from State Government D. Recei i ts from Federal Government 1. Hi:hwa -user taxes 9,693,985 1. FHWA from Item I.D.5. 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 71,373 a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 328,017 d. Federal Transit Admin d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers e. Other (Specify) 2,649,558 f. Other Federal 35,175 f. Total (a. through e.) 2,977,575 g. Total (a. through f.) 106 548 4. Total 1. + 2. + 3. III. DISBURSEMENTS 12,671,560 FOR ROAD AND STREET 3. Total 1. + 2.: PURPOSES - DETAIL (Carry forward to page 1) A.I. Ca i ital outla : a. Right -Of -Way Costs ON NATIONAL HIGHWAY SYSTEM a OFF NATIONAL HIGHWAY SYSTEM b 173,949 TOTAL (c) 173,949 b. En:ineerin: Costs c. Construction: 2,206,224 2,206,224 0 (1). New Facilities (2). Capacity Improvements 0 (3). System Preservation 19,939,299 19,939,299 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4) 0 19,939,299 19,939,299 d. Total Ca , ital Outla Lines 1.a. + 1.b. + 1.c.5 0 22,319,472 22,319,472 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 117 COUNTY OF WELD STATE OF COLORADO Combining Statement of Net Position Internal Service Funds December 31, 2012 Health Motor Vehicle Insurance Insurance Fund Fund Fund ASSETS Current Assets: Cash and cash equivalents Receivables (net of allowances for uncollectables): Current property taxes Delinquent property taxes Accounts Due from other county funds Inventories Other assets Total current assets Fixed assets: Improvements other than buildings Construction in Progress Buildings Machinery and equipment Accumulated depreciation Total Fixed Assets Total assets LIABILITIES AND NET POSITION Current Liabilities: Accounts payable Accrued liabilities Due to other county funds Deferred revenue Total Current Liabilities $ 3,668,906 $ 5,122,739 $ 3,868,376 51,538 103,389 3,823,833 1,058,025 136,500 1,954,377 35,311,599 (20,833,349) 17,627,152 1,500 2,032,207 3,910 5,124,239 5,904,493 $21,450,985 $ 5,124,239 $ 5,904,493 $ 695,353 $ 36,782 $ 147,136 2,333,324 1,692,049 230,868 700 1,185,455 2,040,712 926,221 Total Liabilities 926,221 Net Position Invested in capital assets Restricted for: Insurance Claims Unrestricted Total net position 17,627,152 2,897,612 3,556,261 3,879,897 3,556,261 3,879,897 1,567,978 2,024,596 $20,524,764 $ 1,567,978 $ 2,024,596 118 Phone Services Total Internal Fund Service Funds $ 933,672 $13,593,693 25,843 9,990 53,256 2,032,207 3,910 77,381 9,990 103,389 54,756 1,022,761 15,875,326 29,883 1,854,980 (1,226,276) 1,058,025 166,383 1,954,377 37,166,579 (22,059,625) 658,587 18,285,739 $ 1,681,348 $34,161,065 $ 1,297 $ 880,568 20,216 4,045,589 231,568 3,226,167 21,513 8,383,892 21,513 8,383,892 658,587 18,285,739 1,001,248 3,592,574 3,898,860 $ 1,659,835 $25,777,173 119 COUNTY OF WELD STATE OF COLORADO Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the fiscal year ended December 31, 2012 Operating revenues: Employer & Employee Contributions Charges for services Total operating revenues Operating expenses: Personnel services Supplies Purchased services Insurance and bonds Depreciation Other Claims Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Taxes Miscellaneous Interest income Grants Gain (loss) on disposition of assets Judgements and damages Interest expense Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Capital contributions Transfers in Changes in net position Total net position - beginning Total net position - ending Motor Vehicle Fund 8,408,428 8,408,428 2,783,180 3,571,091 2,910,974 70,611 9,335,856 (927,428) 50 788,001 405,291 1,193, 342 265,914 90,117 3,386,000 3,742,031 16,782,733 $20,524,764 Health Insurance Fund Insurance Fund $13,114,761 $ 107 13,114,868 700 11,559 1,140,308 8,824 11,347,061 92,731 92,731 1,632 42,852 444,981 541,067 12,508,452 1,030,532 606,416 606,416 606,416 961,562 (937,801) 1,744,468 33,143 73,401 1,851,012 913,211 913,211 1,111,385 $ 1,567,978 $2,024,596 120 Phone Services Total Internal Fund Service Funds $ - $13,114,761 1,210,702 9,711,968 1,210,702 22,826,729 174,032 174,732 27,941 2,824,312 810,330 5,564,581 444,981 241,645 3,152,619 40,974 120,409 11,888,128 1,294,922 24,169,762 (84,220) (1,343,033) (1,849) 1,744,468 50 33,143 788,001 403,442 73,401 (1,849) 3,042,505 (86,069) (86,069) 1,745,904 1,699,472 90,117 3,386,000 5,175,589 20,601,584 $1,659,835 $25,777,173 121 COUNTY OF WELD STATE OF COLORADO Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended December 31, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers Cash flows from internal customers Cash payments to external suppliers for goods and services Cash payments to internal suppliers for goods and services Cash payments to employees for services Judgements/damages/losses Miscellaneous revenues Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes Transfers/Advances Grants Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Proceeds from sale of capital assets financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Net Increase (decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of operating income to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided (used ) by operating activities: Depreciation expense Judgements/damages/losses Miscellaneous revenue Change in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in due from other funds (Increase) decrease in inventories (Increase) decrease in other assets Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in other liabilities Increase (decrease) in deferred revenue Total adjustments Net cash provided (used) by operating activities Noncash investing, capital, and financing activities: Contributions of capital assets from (to) government Loss on Disposal of Asset Motor Vehicle Fund Health Insurance Fund Insurance Fund 224,860 - 7,970,365 13,285,747 (5,387,715) (12,379,450) (131,843) (12,852) 50 2,675,717 3,386,000 788,001 4,174,001 (6,905,439) 452,877 (6,452,562) 397,156 3,271,750 893,445 893,445 4,229,294 3,668,906 5,122,739 (927,428) 2,910,974 50 (29,245) (23,208) 283,755 231,720 229,099 3,603,145 2,675,717 90,117 3,028 606,416 129,939 (1,500) 26,966 101,988 (134,414) 164,050 263,229 11,037 92,731 (1,341,727) 73,401 (1,164,558) 1,741,129 1,741,129 35,937 612,508 3,255,868 3,868,376 (937,801) 73,401 (263,773) 284,185 (94,570) (489,229) 287,029 (226,757) 893,445 (1,164,558) 122 Phone Service Fund Total Internal Service Funds 170,754 1,030,718 (738,621) (137,722) (171,387) 153,742 (244,093) (244,093) (90,351) 1,024,023 933,672 (84,220) 241,645 (9,895) (9,990) 14,519 (476) 2,404 (245) 237,962 153,742 1,849 406,651 22,379,561 (19,847,513) (282,417) (171,387) 73,401 50 2,558,346 1,741,129 3,386,000 788,001 5,915,130 (7,149,532) 452,877 (6,696,655) 35,937 1,812,758 11,780,935 13,593,693 (1,343,033) 3,152,619 73,401 50 (302,913) 119,949 (23,208) 580,959 163,640 (384,837) 94,440 427,279 3,901,379 2,558,346 90,117 4,877 123 COUNTY OF WELD STATE OF COLORADO Combining Statement of Changes in Assets and Liabilities Fiduciary Funds For the fiscal year ended December 31, 2012 Balance Balance 1/1/2012 Additions Deductions 12/31/2012 GENERAL AGENCY FUND Assets: Cash and investments Total Assets Liabilities: Accounts payable Due to other governments Total Liabilities PAYROLL AGENCY FUND Assets: Cash and investments Accounts receivable Total Assets Liabilities: Accounts payable Total Liabilities EMPLOYEE FLEXIBLE SPENDING Assets: Cash and investments Accounts receivable Total Assets Liabilities: Accounts payable Total Liabilities TOTAL - ALL AGENCY FUNDS Assets: Cash and investments Accounts receivable Total Assets Liabilities: Accounts payable Due to other governments Total Liabilities $ 6,881,748 $ 297,387,065 $ 298,038,600 $ 6,230,213 $ 6,881,748 $ 297,387,065 $ 298,038,600 $ 6,230,213 $ 81,088 $ 22,711 $ 103,774 $ 25 6,800,660 299,852,675 300,423,146 6,230,189 $ 6,881,748 $ 299,875,386 $ 300,526,920 $ 6,230,214 $ 30,318 $ 21,239, 783 $ 21,166,172 $ 103,929 12,341 35,855 30,171 18,025 $ 42,659 $ 21,275,638 $ 21,196,343 $ 121,954 $ 42,659 $ 21,774,461 $ 21,695,166 121,954 $ 42,659 $ 21,774,461 $ 21,695,166 $ 121,954 $ 71,962 $ 791,701 $ 812,676 $ 50,987 - 46 - 46 $ 71,962 $ 791,747 $ 812,676 $ 51,033 $ 71,962 $ 51,032 $ 71,962 51,032 $ 71,962 $ 51,032 $ 71,962 $ 51,032 $ 6,984,028 $ 319,418,549 $ 320,017,448 $ 6,385,129 $ 12,341 35,901 30,171 18,071 $ 6,996,369 $ 319,454,450 $ 320,047,619 $ 6,403,200 $ 195,709 $ 21,848,204 $ 21,870,902 $ 173,011 6,800,660 299,852,675 $ 300,423,146 6,230,189 $ 6,996,369 $ 321,700,879 $ 322,294,048 $ 6,403,200 124 COUNTY OF WELD STATE OF COLORADO Paramedic Services Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Operating Revenues: Rescue unit fees Total Operating Revenues Operating Expenses: Personnel services Supplies Purchased services Depreciation Other Total Operating Expenses Operating Income (Loss) Nonoperating Revenues: Fees Donations Other Gain (loss) on disposition of assets Total Nonoperating Revenues Income(loss) before contributions and transfers Transfers out Net Income (Loss) Net Position at Beginning of Year Original Final Actual Variance $ 6,230,000 $ 6,230,000 $ 1,791,473 $ (4,438,527) 6,230,000 6,230,000 1,791,473 (4,438,527) 4,436,476 284,500 832,950 399,878 33,175 5,986,979 243,021 243,021 243,021 4,750,207 4,436,476 284,500 832,950 399,878 33,175 5,986,979 243,021 243,021 243,021 1,755,536 136,624 542,639 176,959 8,394 2,620,152 (828,679) 5,227 25 157,480 (544,561) (381,829) (1,210,508) 3,539,699 (4,750,207) 4,750,207 4,750,207 Net Position at end of Year $ 4,993,228 $ 4,993,228 $ 2,680,940 147,876 290,311 222,919 24,781 3,366,827 (1,071,700) 5,227 25 157,480 (544,561) (381,829) (1,453,529) (3,539,699) (4,993,228) - $ (4,993,228) 125 COUNTY OF WELD STATE OF COLORADO Motor Vehicle Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Operating Revenues: Charges for services Miscellaneous Total Operating Revenues Operating Expenses: Supplies Purchased services Depreciation Other Total Operating Expenses Operating income (loss) Nonoperating Revenues (Expenses): Miscellaneous Grants Gain (loss) on disposition of assets Total Nonoperating Revenues(Expenses) Income(Loss) before contributions and transfers Capital contributions Transfers in Net Income (Loss) Original Final Actual Variance $ 4,500,000 $ 4,500,000 $ 5,448,030 $ 948,030 2,600,000 2,600,000 2,960,398 360,398 7,100,000 2,121,000 2,886,500 2,600,000 70,611 7,678,111 (578,111) 602,111 602,111 24,000 24,000 7,100,000 2,721,000 3,686,500 2,900,000 70,611 9,378,111 (2,278,111) 602,111 602,111 (1,676,000) 3,386,000 1,710,000 Net Position at Beginning of Year 16,782,733 16,782,733 Net Position at End of Year $ 16,806,733 $ 18,492,733 8,408,428 1,308,428 2,783,180 3,571,091 2,910,974 70,611 9,335,856 (62,180) 115,409 (10,974) 42,255 (927,428) 1,350,683 50 788,001 405,291 1,193,342 265,914 90,117 3,386,000 50 788,001 (196,820) 591,231 1,941,914 90,117 3,742,031 2,032,031 16,782,733 $ 20,524,764 $ 2,032,031 126 COUNTY OF WELD STATE OF COLORADO Health Insurance Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Operating Revenues: Employer & Employee Premiums Operating Expenses: Personnel services Supplies Purchased services Other Claims Total Operating Expenses Operating Income (Loss) Net Income (Loss) Net Position at Beginning of Year Original Final Actual Variance $ 14,457,555 $ 14,457,555 $ 13,114,868 $ (1,342,687) 643,216 1,425,627 12,388,712 14,457,555 961,562 643,216 1,425,627 12,388,712 14,457,555 961,562 700 11,559 1,140,308 8,824 11,347,061 12,508,452 606,416 606,416 961,562 (700) (11,559) (497,092) 1,416,803 1,041,651 1,949,103 606,416 606,416 Net Position at End of Year $ 961,562 $ 961,562 $ 1,567,978 $ 606,416 127 COUNTY OF WELD STATE OF COLORADO Insurance Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Operating Revenues: Charges for services Operating Expenses: Supplies Purchased services Insurance and bonds Other Claims Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Taxes Penalties & interest Interest income Judgments and damages Total Nonoperating Revenues (Expenses) Net Income (Loss) Net Position at Beginning of Year Original Final $ 140,000 $ 3,500 40,200 700,000 500 1,225,800 1,970,000 (1,830,000) 1,750,000 60,000 20,000 1,830,000 140,000 3,500 40,200 700,000 500 1,225,800 1,970,000 (1,830,000) 1,750,000 60,000 20,000 1,830,000 Actual Variance $ 92,731 $ (47,269) 1,632 42,852 444,981 541,067 1,030,532 (937,801) 1,741,674 2,794 33,143 73,401 1,851,012 913,211 1,111,385 1,111,385 1,111,385 1,868 (2,652) 255,019 500 684,733 939,468 892,199 (8,326) 2,794 (26,857) 53,401 21,012 913,211 Net Position at End of Year $ 1,111,385 $ 1,111,385 $ 2,024,596 $ 913,211 128 COUNTY OF WELD STATE OF COLORADO Phone Service Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the fiscal year ended December 31, 2012 Budgeted Operating Revenues: Charges for services Operating Expenses: Personnel services Supplies Purchased services Depreciation Other Total Operating Expenses Operating Income (Loss) Nonoperating revenues (expenses): Gain (loss) on disposition of assets Total nonoperating revenues (expenses) Net Income (Loss) Net Position at Beginning of Year Original Final Actual Variance $ 1,448,848 $ 1,550,848 $ 1,210,702 $ (340,146) 162,572 14,100 758,670 222,532 40,974 1,198,848 250,000 177,572 16,100 843,670 222,532 40,974 174,032 27,941 810,330 241,645 40,974 1,300,848 1,294,922 250,000 250,000 250,000 3,540 (11,841) 33,340 (19,113) 5,926 (84,220) (334,220) (1,849) (1,849) (1,849) (1,849) (86,069) (336,069) 1,745,904 1,745,904 1,745,904 Net Position at End of Year $ 1,995,904 $ 1,995,904 $ 1,659,835 $ (336,069) 129 130 STATISTICAL SECTION rii& (ts,i, Willie COLORADO STATISTICAL SECTION (unaudited) This part of the Weld County Government's comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity Weld County is without bonded debt and, accordingly, the following statistical tables are not presented: Ratios of Outstanding Debt by Type and Ratios of General Bonded Debt Oustanding. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the acitivities it performs. 132 140 145 147 154 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 131 COUNTY OF WELD STATE OF COLORADO Net Position by Component Last Ten Years (accrual basis of accounting) Governmental activities Invested in capital assets, net of related debt Restricted for Programs Emergencies Claims Other Unrestricted Total governmental activities net position Business -type activities Invested in capital assets, net of related debt Unrestricted Total business -type activities net position Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net position Fiscal Year 2003 2004 2005 $ 247,764,877 $ 238,640,911 3,169,309 3,025,505 1,748,948 4,199,374 3,500,000 1,748,949 2006 2007 $ 231,271,356 $ 233,626,280 $ 249,237,323 4,695,690 4,000,000 1,748,950 3,953,450 4,000,000 1,748,951 3,988,022 5,000,000 1,748,951 26,511,213 30,759,296 39,782,093 48,545,826 40,122,962 $ 282,219,852 $ 278,848,530 $ 281,498,089 $ 291,874,507 $ 300,097,258 $ 834,285 $ 864,425 $ 809,643 $ 852,705 $ 987,445 (266,736) (4,761) 1,508,322 2,118,077 2,191,453 $ 567,549. $ 859.664 $ 2.317.965 $ 2,970,782 $ 3,178,898. $ 248,599,162 $ 239,505,336 $ 232,080,999 $ 234,478,985 $ 250,224,768 7,943,762 9,448,323 10,444,640 9,702,401 10,736,973 26,244,477 30,754,535 41,290,415 50,663,903 42,314,415 $ 282,787,401 $ 279,708,194 $ 283,816,054 $ 294,845,289 $ 303,276,156 2008 2009 $ 253,009,697 $ 256,826,307 4,033,041 5,000,000 1,270,613 37,397,773 $ 300,711,124 4,524,110 6,000,000 2,270,613 40,819,002 $ 310,440,032 2010 2011 2012 $ 254,893,784 $ 252,365,188 $ 260,630,887 4,912,503 6,000,000 4,734,410 5,360,845 6,000,000 4,734,409 66,081,025 74,131,389 $ 336,621,722 $ 342,591,831 6,197,551 6,000,000 4,734,409 40,542,676 50,626,441 $ 368,731,964 $ 1,076,125 $ 1,011,224 $ 1,305,614 $ 1,524,148 $ 2,776,179 2,478,408 3,194,266 3,526,143 - $ 3,852,304 $ 3 489 632 $ 4,499,88Q $ 5,050,291 $ - $ 254,085,822 10,303,654 40,173,952 $ 257,837,531 12,794,723 43,297,410 $ 256,199,398 15,646,913 69,275,291 $ 253,889,336 16,095,254 77,657,532 $ 260,630,887 57,474,636 50,626,441 $ 304,563,428 $ 313,929,664 $ 341,121,602 $ 347,642,122 $ 368,731,964 COUNTY OF WELD STATE OF COLORADO Changes in Net Position Last Ten Years (accrual basis of accounting) Expenses Governmental activities: General government Public safety Streets and highways Health and welfare Culture and recreation Economic assistance Interest on long-term debt Total governmental activities expenses Business -type activities: Paramedic service Total primary government expenses Program Revenues Governmental activities: Charges for services: General government Public Safety Streets and highways Health and welfare Culture and recreation Economic assistance Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Paramedic service Total primary government revenues Net (Expenses)/Revenue Governmental activities Business -type activities Total primary government net 2003 2004 2005 2006 2007 $ 23,618,753 $ 21,174,906 $ 23,047,725 $ 26,641,373 $ 35,301,327 27,827,685 28,425,957 30,449,441 32,562,998 36,717,165 33,353,129 32,688,807 36,919,372 37,068,628 34,637,731 21,404,255 23,538,421 24,843,147 26,179,807 31,026,419 776,322 1,005,697 771,295 1,549,379 1,008,703 11, 411,322 12,646,785 13, 736,745 11, 747,943 14,403,662 377,233 358,054 340,411 322,293 335,771 118, 768,699 119, 838,627 130,108,136 136, 072,421 153, 430,778 8,800,646 9,738,148 6,371,413 7.156,700 8,444,840 127.569.345 $ 129.576.775 $ 136.479.549 $ 143.229.121 $ 161.875.618 $ 8,677,015 $ 8,086,983 $ 9,792,423 $ 12,265,623 $ 10,043,033 5,085,767 7,609,527 5,430,422 6,378,749 4,998,285 2,279,939 1,157,634 3,433,713 4,023,310 3,566,774 11, 486,561 12, 699,858 13, 664,206 14,949,936 17, 504,660 1,375 309,948 333,293 345,990 453,352 1,576,106 862,223 1,156,012 1,186,129 838,871 25,963,243 27,124,685 27,885,047 30,045,943 36,500,297 4,738,627 55,070,006 57,850,858 61,695,116 69,195,680 78,643,899 8,518,289 10.035,874 7,829,714 7,809,516 8,652,955 63,588,295 67,886,732 69,524,830 77,005,196 87,296,854 (63,698,693) (61,987,769) (68,413,020) (66,876,741) (74,786,879) (282,357) 297,726 1,458,301 652,816 208.115 (63,981.050) $ (61.690.043) $ (66.954.719) $ (66.223.925) 547-4.5711a41 General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes $ 47,532,602 $ 50,785,919 $ 56,382,533 $ 62,124,792 $ 67,215,993 Specific Ownership 5,540,872 6,795,897 6,627,991 6,614,819 7,056,071 Other 2,492,418 3,333,336 3,733,025 5,266,786 3,546,134 Royalties Miscellaneous Unrestricted investment earnings 1,563,120 1,644,979 2,679,442 4,539,172 5,191,430 Donated capital assets 0 0 355,784 7,602 - Gain on sale of capital assets (94,544) (2,358,185) Transfers (1,300,000) Total governmental activities 57,034,468 60,201,946 69,778,775 77,253,171 83,009,628 Business -type activities: Paramedic service (5,057) (5,611) Total primary government $ $ 60.196.335 $ 69.778.775 $ Z7,253,171 $ 83.009.628 Change in Net Position Governmental activities Business -type activities Total primary government $ (6,664,225) $ (1,785,823) $ 1,365,755 $ 10,376,430 $ 8,222,749 (287,414) 292,115 1,458,301 652,816 208,115 $ (6,951.639) $ (1.493.708) $ 2.824.056 $ 11.029.246 $ 8,430.864 134 2008 $ 31,019,065 40,496,490 40,795, 016 35,117,225 1,077, 743 14,601, 330 163,106, 869 2009 $ 31,738,352 40,649, 718 31,123, 536 39,882, 326 1,013, 683 15,546,027 159,953,642 2010 $ 31,497,117 40,551, 255 34,662, 990 37,946, 589 1,215,481 9,262, 302 2011 2012 $ 31,930,407 42,613, 038 37,519,293 35,881,864 1,123, 268 8,115,722 $ 34,789,583 44,263,029 37,220,963 36,968,434 1,290, 618 7,302,875 155,135, 734 157,183, 592 161,835, 502 9,289,761 9,310,991 6,349,218 5,964,112 2,846,859 $172.396.630 $ 169.264.633 $ 161.484.952 $ 163.147.704 $ 164.682.361 $ 11,681,170 $ 8,728,521 $ 10,117,110 $ 12,644,748 $ 11,580,340 5,814,979 5,658,339 7,021,139 6,023,109 7,406,430 3,518,926 3,262,996 1,932,790 2,022,037 3,439,523 19,870, 091 21,091,150 21,311,474 19,360, 887 21,865, 091 468,488 448,990 549,483 619,316 725,868 756,698 1,041,768 834,429 822,309 381,199 33,134,702 36,580,590 27,858,758 24,034,211 23,821,017 25,454 75,270, 508 9,113,166 84,383, 674 76,812, 354 7,563, 318 84,375, 672 69,625,183 5,859,468 65,526, 617 6,514, 522 69,219,468 1,954, 205 75,484,651 72,041,139 71,173,673 (87,836,361) (83,141,288) (85,510,551) (91,656,975) (92,616,034) (176,595) (1,747,673) (489,750) 550,410 (892,654) $ f88.012.956) $ (84.888.961) $ f86.000.301) i 191.106,565) $ i933.508.688) $ 72,735,158 $ 75,047,892 7,035,189 6,167, 691 5,454,324 3,472,065 1,707, 235 5,468, 676 4,075,554 2,391,636 (850,000) 88,450, 225 $ 95,251,609 $ 76,808,723 $ 88,229,134 6,018,849 5,743,784 7,302,111 845,578 1,794,415 2,410,032 2,556,866 7,169,988 12,083,892 6,415,403 4,305,446 3,231,877 2,103,942 1,804, 728 1,341, 489 (1,385,000) (1,500,000) 4,157, 638 92,870,195 111,692,247 97,627,084 118,756,173 850,000 1,385, 000 1,500, 000 (4,157,638) 1_12.1222215 $94.255.195 $ 113.192.247 1_27A27_,211 `114.598.535 $ 613,864 $ 9,728,907 $ 26,181,696 $ 5,970,109 $ 26,140,139 673,405 (362,673) 1,010,250 550,410 (5,050,292) $ 1.287.269 $ 9.366.234 $ 27.191.946 $ 6.520,519 $ 21.089.847 135 COUNTY OF WELD STATE OF COLORADO Fund Balances of Governmental Funds Last Ten Years (modified accrual basis of accounting) General Fund Reserved Unreserved Nonspendable * Restricted * Committed * Assigned * Unassigned * Total general fund 2003 2004 2005 2006 2007 $ 1,342,369 $ 1,516,298 $ 1,486,188 $ 946,073 $ 1,081,217 $ 3,727,307 $ 6,699,941 $ 7,648,920 $ 10,630,592 $ 7,007,528 5.069.676 $ 8,216,239 $ 9,135,108 $ 11,576,665 $ 8,088,745 All other Governmental Funds Reserved $ 2,666,118 $ 4,139,435 $ 8,834,511 $ 19,019,004 $ 12,074,704 Unreserved Unreserved, reported in: Special revenue funds 22,023,076 25,360,820 26,155,751 25,281,236 27,791,990 Capital projects funds 2,830,614 697,779 3,511,495 0 272,790 Debt service funds Nonspendable * Restricted * Committed * Assigned * Unassigned * - - - Total for all governmental funds $ 32,589,484 $ 38,414,273 $ 47,636,865 $ 55,876,905 $ 48,228,229 * Difference in fund balance presentation is due to implementation of GASB 54 in 2011 2008 2009 2010 2011 2012 $ 1,161,271 $ 846,808 $ 1,882,253 $ 10,645,617 $ 9,960,565 $ 9,967,335 $ 687,239 $ 1,216,973 6,000,000 6,863,582 1,927,404 2,305,309 1,808,529 615,428 - - 10,691,668 10,126,783 $ 11,806,888 $ 10,807,373 $ 11,849588 $ 21,114,840 $ 21 128 075 $ 12,631,501 $ 9,861,718 $ 7,138,513 25,032,274 (2,064,635) 32,475,341 1,617,052 57,755,218 6,362,877 $ 963,566 $ 1,020,322 36,493,043 40,377,056 32,295,274 46,347,303 $ 47,406,028 $ 54,761,484 83.106.196 $ 90,866,723 $ 108,872,756 COUNTY OF WELD STATE OF COLORADO Changes in Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting) Revenues Taxes Licenses and permits Intergovernmental Fines and forfeitures Charges for Services Miscellaneous Fees Total Revenues Expenditures Current: General government Public Safety Public Works Public health and welfare Culture and recreation Economic assistance Capital outlay Debt service Interest Principal Total Expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses) Transfers -in Transfers -out Total Other Financing Sources (Uses) Net changes in Fund Balance Debt Service as a percentage of noncapital expenditures 2003 2004 $ 53,080,974 1,760,546 38,299,161 75,488 6,887,469 4,739,386 7,387,204 $ 57,698,294 1,834,849 40,652,682 69,538 7,345,819 5,329,931 7,454,831 112, 230, 228 120, 385, 944 21,910,296 27,212,371 21,407,821 20,896,282 764,449 11,365,585 8,668,934 377,233 20,566,315 27,475,345 22,734,695 23,046,109 1,007,208 12,450,198 6,923,230 358,054 112,602,971 114,561,154 (372,743) 5,824,790 2,482,745 2,482,745 4,299,153 4,299,153 2005 $ 63,261,095 2,119,419 41,110,202 204,530 8,618,819 7,582,510 8,175,907 2006 $ 69,178,181 3,188,354 44,982,577 135,908 8,232,213 13,377,598 8,602,079 131,072,482 147,696,910 22, 384, 671 29,834,629 25,490,667 24,284,817 775,903 13,572,861 5,165,931 340,411 25,366,204 31,881,427 26,315,156 25,993,962 1,550,929 11,746,242 14,980,649 322,293 12118491890 138,156,862 9,222,592 9,540,048 7,436,144 7,436,144 11,309,847 12,609,847 (1,300,000) 2007 $ 74,627,631 2,129,731 53,886,023 416,668 7,800,131 9,567,707 8,061,587 156,489,478 32,605,930 35,945,956 31,798,757 30,940,641 1,011,311 14,449,197 17,050,592 335,771 164,138,155 (7,648,677) 4,340,010 4,340,010 $ (372.743) $__5A2429.4 $ 9.222..92 $ 8.240.048 $ L7. 46 8.6771 0.36% 0.33% 0.29% 0.26% 0.23% 138 2008 2009 2010 2011 2012 $ 80,182,212 2,089,925 52,887,281 295,246 8,898,865 12,523,751 7,845,617 $ 84,642,477 1,467,282 61,100,082 323,411 8,939,683 7,132,908 7,546,475 164,722,897 171,152,318 29,061,657 38,564,419 36,643,514 34,585,229 1,077,592 14,459,482 9,883,207 28,311,209 38,668,759 29,595,637 39,287,986 1,014,422 14,622,541 9,911,307 164,2751100 161,411,861 447,797 9,740,457 4,914,085 6,184,085 7,583,632 9,968,632 (1,270,000) (2,385,000) $ L 2 ) $ 7.355.457 0.00% 0.00% $ 102,079,791 2,512,999 53,021,343 587,330 7,771,230 8,133,573 8,827,457 $ 84,310,617 2,093,316 44,670,251 441,455 6,899,382 15,397,352 9,445,288 $ 97,903,945 2,968,095 45,601,958 319,091 7,781,755 18,968,975 10,392,181 182,933,723 163,257,661 183,936,000 29,608,752 38,176,653 28,524,940 36,850,368 1,214,300 9,086,301 8,627,695 30,964,059 40,657,128 30,834,148 35,187,959 1,127,873 7,880,482 7,795,485 31,777,518 43,328,129 37,843,853 36,852,403 1,291,707 7,400,591 7,589,459 152,089,009 154,447,134 166,083,660 30,844,714 8,810,527 17,852,340 7,157,161 9,657,161 15,807,328 16,857,328 (2,500,000) (1,050,000) 11,194,959 11,041,260 153,699 $ 28.344.714 $ 7.760.527 $ 18.006.039 0.00% 0.00% 0.00% COUNTY OF WELD STATE OF COLORADO Assessed Value and Estimated Actual Value of Taxable Property Last Ten Years Levy Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Vacant Land 118,539,590 105,868,950 115, 005, 330 110,566,010 132,402,840 125,609,000 114,462,060 107,499,350 82,601,960 76,770,990 Residential Property 790, 760, 590 851,446, 760 972,251,070 1,051,061,180 1,218,082,640 1, 258, 374, 790 1,147,417,980 1,161,670,030 1,110,455,180 1,126,143,600 Commercial Industrial Property Property Agricultural 425, 380, 570 151, 942, 640 153,478, 310 448,526,350 153,747,260 158,581,990 507,867,420 155,227,960 172,592,990 538, 352, 810 194, 235, 560 175, 708, 230 631,036,750 214,051,130 96,371,890 654,957,800 216,214,910 97,874,960 703,405,460 281,991,090 100,747,790 713,727,230 338,066,670 100,999,290 700,148,970 343,525,350 117,189,830 741,004,020 405,141,700 120,086,240 Source: Office of the Weld County Assessor Note: Natural Resources 8,673,760 10,115,440 9,310,740 10,876,640 14,538,010 14,996,920 15,959,790 12,388,270 12,839,310 12,176,900 The assessment ratio for Residential Property was 10.36 in 1995, changed to 9.74 in 1997, 9.15 in 2001 and 7.96 in 2003 as determined by State Law. Commercial Property and non-residential Personal Property has been assessed at 29% of actual value throughout the ten-year time frame. 140 State Oil & Gas Assessed 554,434,380 284,213,800 969,984,640 295,147,000 1,279,782,160 403,287,500 1,736,735,240 386,413,500 1,749,119,710 412,859,500 1,709,997,160 487,797,900 2,868,304,890 538,504,800 1,673,838,130 593,020,000 2,439,298,540 615,803,700 3,382,053,530 650,106,300 Total Taxable Assessed Value 2,487,423,640 2,993,418,390 3,615,325,170 4,203,949,170 4,468,462,470 4,565,823,440 5,770,793,860 4,701,208,970 5,421,862,840 6,513,483,280 Estimated Actual Taxable Value 15,225,468,379 16, 596, 579, 600 19, 255, 338, 644 21,011,080,893 22,698,462,039 23,564,608,165 24,007,360,964 23,154,987,218 22, 248, 958, 038 25,455,503,949 Assessed Value as a Total Direct Percentage of Tax Rate Actual Value 20.056 16.337% 21.474 18.036% 19.957 18.776% 17.900 20.008% 16.804 19.686% 16.804 19.376% 16.804 24.038% 16.804 20.303% 16.804 24.369% 16.804 25.588% COUNTY OF WELD STATE OF COLORADO Property Tax Rates Direct and Overlapping Governments Last Ten Years General Levy Year Government Road & Bridge Public Welfare Contingent Capital Insurance Tota Direct County 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 14.044 15.791 13.909 12.321 11.487 11.736 11.842 11.389 10.479 10.476 2.133 2.010 2.002 1.847 1.668 1.647 1.613 1.498 1.303 1.303 1.512 2.013 1.772 1.551 1.333 1.293 1.266 1.965 1.863 1.864 0.701 0.523 0.535 0.360 0.619 0.448 0.215 1.491 1.492 1.439 0.916 1.488 1.544 1.399 1.344 1.754 1.415 1.342 1.343 0.227 0.221 0.251 0.277 0.298 0.336 0.329 0.322 0.326 0.326 20.056 21.474 19.957 17.900 16.804 16.804 16.804 16.804 16.804 16.804 Overlapping Rates Levy Direct City of School Aims Year County Greeley District 6 College 2003 20.056 11.274 47.981 6.316 2004 21.474 11.274 46.453 6.322 2005 19.957 11.274 44.711 6.328 2006 17.900 11.274 41.129 6.357 2007 16.804 11.274 40.760 6.330 2008 16.804 11.274 36.922 6.308 2009 16.804 11.274 36.600 6.323 2010 16.804 11.274 36.633 6.312 2011 16.804 11.274 37.104 6.360 2012 16.804 11.274 37.856 6.355 The basis for the property tax rates is per $1,000 assessed valuation Source: Office of the Weld County Assessor. • Weld Library 3.249 3.249 3.249 3.281 3.261 3.253 3.260 3.255 3.281 3.271 142 COUNTY OF WELD STATE OF COLORADO Principal Property Taxpayers Current Year and Nine Years Ago Noble Energy Inc Kerr-McGee Oil & Gas Onshore LP Petroleum Development Corp Public Service Company of Colorado (XCEL) Encana Oil & Gas (USA) Inc DCP Midstream LP EOG Resources Inc Vestas Blades America Inc Kerr McGee Gathering LLC Colorado Interstate Gas Co Kerr-McGee Rocky Mountain Corp Patina Oil & Gas Corporation Eastman Kodak Company Merit Energy Duke Energy Field Services Inc Thermo Cogeneration Qwest Corp KFA US West Source: Weld County Assessor 2012 Taxable Assessed Value $ 1,337,193,180 1,014,003,300 241,624,500 207, 498, 900 205, 684,190 154, 354,480 138, 522, 790 83, 657,130 80,051,600 44, 790, 900 $ 3,507,380,970 Percent Of Total County Taxable Assessed Rank Value 1 2 3 4 5 6 7 8 9 10 28.44% 21.57% 5.14% 4.41% 4.38% 3.28% 2.95% 1.78% 1.70% 0.95% 2003 Taxable Assessed Value Percent Of Total County Taxable Assessed Rank Value 106,284,500 3 37,432,100 4 3,164,600 7 185,549,500 161,491,590 35,998,520 32,598,960 29,704,220 26,309,600 24,827,700 74.61% $ 643,361,290 1 2 5 6 8 9 10 4.27% 1.51% 1.27% 7.46% 6.49% 1.45% 1.31% 1.19% 1.06% 1.00% 27.01% 143 COUNTY OF WELD STATE OF COLORADO Property Tax Levies and Collections Last Ten Years Levy Collect Year Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Taxes Levied for the Fiscal Year (1) 48,691,835 53,414,937 59,739,651 64,714,321 70,643,162 75,088,043 76,724,097 96,972,420 78,999,116 91,108,983 Collected within the Ficsal Year of the Levy Tax Percent Amount (2) of Levy 48,410,396 53,094,454 59,395,927 64,580,198 70,575,408 74,877,199 75,903,359 96,736,465 78,833,201 91,202,627 Source: 1) Office of the Weld County Assessor 2) YTD Treasurer's Tax Distribution 3) YTD Treasurer's Tax Distribution 2001 forward 99.422% 99.400% 99.425% 99.793% 99.904% 99.719% 98.930% 99.757% 99.790% 100.103% Collections Total Collections to Date in Subsequent Tax Percent Years (3) Amount (3) of Levy 100,074 (230,263) 210,799 58,767 327,098 167,705 152,935 235,955 86,260 48,510,470 52, 864,191 59,606,726 64,638,965 70,643,162 75,044,904 76,056,294 96,972,420 78,919,461 91,202,627 Negative values reflect subsequent rebates and adjustments. 99.628% 98.969% 99.777% 99.884% 100.000% 99.943% 99.130% 100.000% 99.899% 100.103% 144 COUNTY OF WELD STATE OF COLORADO Direct and Overlapping Governmental Activities Debt December 31, 2012 Jurisdiction Cities & Towns Schools Special Districts Total Overlapping Net General Obligation Bonded Debt Outstanding $ 69,619,088 488,812,891 315,298,871 $ 873,730,.85_0 Percentage Applicable to Government (1) 90.50% 64A6% 56.15% Source: Debt outstanding provided by each governmental unit. Amount Applicable to Government $ 63,004,858 313,621,781 177,048,957 $ 551_67_5,5_96 5_96 Note: (1) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the county. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by residents and businesses of Weld County. This process recognizes that, when considering the county's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 145 COUNTY OF WELD STATE OF COLORADO Legal Debt Margin Information Last Ten Years Legal Debt Margin Calculation for Fiscal Year 2012 Assesed Value, 2012 Debt Limit 3 percent of Assesed Value Total Bond Debt Installment Purchase Agreements $0 0 Total Amount of debt applicable to limit Legal Debt Margin Legal Debt Margin Information Last Ten Fiscal Years $ 6,513,483,280 195,404,498 0 $ 195,404,498 Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit 2003 $74,622,712 $74,622,712 0.00% 2004 2005 $89,802,552 $108,459,755 $89,802,552 $108,459,755 0.00% 0.00% Note: Debt Limitation: Under Section 30-35-201, Colorado Revised Statutes, 1973, the County may incur indebtedness for general County purposes in an amount not to exceed 3% of assess valuation of all taxable property. 2006 $126,118,475 $126,118,475 0.00% 146 2007 2008 $134,053,874 $136,974,703 $134,053,874 0.00% 2009 $173,123,816 $136,974,703 $173,123,816 0.00% 0.00% 2010 2011 $141,036,269 $162,655,885 $141,036,269 0.00% $162,655,885 0.00% 2012 $195,404,498 $195,404,498 0.00% COUNTY OF WELD STATE OF COLORADO Private Purpose Revenue Bonds December 31, 2012 INDUSTRIAL REVENUE BONDS: DEBT REVENUE BOND TYPE OF ISSUE OUTSTANDING OUSTANDING ISSUER FACILITY AMOUNT DATE BEGINNING OF YEAR ISSUED RETIRED END OF YEAR Centennial Area Office Health Education Central 388,000 5/99 $208,160 0 22,012 $186,148 GSSLB Association Nursing Home Nursing Home 2,020,000 10/98 1,035,000 0 60,000 $975,000 Greeley Center for Therapeutic 1,650,000 9/03 1,128,060 0 76,763 $1,051,297 Independence, Inc Center North Range Behavioral Health Office 4,500,000 5/07 3.011,180 0 127.410 $2,883,770 TOTAL PRIVATE PURPOSE REVENUE BONDS $533,62,40 $286.185 $5.096.215 148 COUNTY OF WELD STATE OF COLORADO Demographic and Economic Statistics Last Ten Years Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Population 207,120 217,652 221,957 229,377 236,908 244,515 251,220 252,825 254,759 263,691 Total Personal Income Per ($ billion) Capita Income 5.14 5.38 5.79 5.84 6.23 6.66 7.38 7.07 6.93 7.76 24,279 25,274 25,968 25,495 26,280 27,238 27,788 28,503 27,186 25,233 Unemployment Rate 6.70% 5.40% 5.00% 3.80% 4.63% 6.30% 8.16% 9.80% 9.10% 8.70% Source: Upstate Colorado in cooperation with University of Northern Colorado and the State of Colorado demographer. 149 COUNTY OF WELD STATE OF COLORADO Principal Employers Current Year and Nine Years Ago JBS Swift Beef Company Banner Health (NCMC) School District 6 State of Colorado (includes UNC ) Weld County Government State Farm Insurance Companies Vestas City of Greeley AIMS Community College Halliburton Energy Services Inc StarTek Inc Eastman Kodak Company Total Principal Employers Other Employers Total County Employment Source: Upstate Colorado 2012 Percent Of Total County Employees Rank Employment 4619 1 3.72% 3000 2 2.42% 2800 3 2.26% 1658 4 1.34% 1372 5 1.11% 1350 6 1.09% 870 7 0.70% 869 8 0.70% 815 9 0.66% 800 10 0.64% 18,153 105,883 124,036 14.64% 85.36% 100.00% 2003 Percent Of Total County Employees Rank Employment 3400 1884 2180 2072 1116 1283 1 4 2 3 9 7 897 10 1596 6 1200 8 1700 5 17,328 72,070 89,398 3.80% 2.11% 2.44% 2.32% 1.25% 1.44% 1.78% 1.79% 1.34% 1.90% 19.64% 80.62% 100.00% 151 COUNTY OF WELD STATE OF COLORADO Full -Time Equivalent County Government Employees by Function/Program Last Ten Years 2003 2004 2005 2006 2007 2008 Function/Program General government Public safety (1) Public works Health and welfare(2) Culture and recreation Economic assistance (3) Total General Government Business -type activities: Paramedic service (4) Total primary government 241 241 247 256 258 269 267 267 275 279 308 352 155 155 139 167 167 165 258 258 286 305 337 357 2 2 1 1 1 1 162 161 181 166 173 148 1,085 1,084 1,129 1,174 1,244 1292 57 57 62 63 67 74 1,142 1,141 1,191 1,237 1,311 1,366 Source: Weld County Human Resources Notes (1) A traffic unit was added in 2001 funded by the CDOT Office of Highway Safety Grant and initially requiring 5 positions The North Jail Complex was built in 1997 with 160 beds and a staffing level of 75. Phase II added 226 beds in 2004 and increased projected 2005 staffing to 132. Phase III construction in 2006-07 added 374 beds and increased staffing of 42 in 2007. Twelve additional management and support positions were added in 2008. The deferred opening of 122 secure confinement beds contained prevented further hiring. (2) The demand for welfare and public health care has increased more rapidly with the economic downturn. (3) As of 12/31/2009 Headstart responsibilities were relinquished back to the Federal Agency for operational purposes. (4) As of 05/07/2012 Paramedic Services was transferred by Weld County to Northern Colorado Medical Center Inc. 15 2009 2010 2011 2012 247 244 251 239 365 345 351 357 163 161 161 164 372 378 368 380 1 2 2 2 144 78 73 79 1,292 1,208 1,206 1,221 72 69 69 0 1,364 1,277 1,275 1,221 153 COUNTY OF WELD STATE OF COLORADO Operating Indicators by Function/Program Last Ten Years Function/Program General government: Motor vehicle registration Registered voters (1) Number of votes cast (2) Percent of registered voters voting Public safety: Adult arrests Juvenile arrests Average secure jail population E911 calls Building Permits Valuation (thousands) Public works: Miles of road graveled Snow removal lane miles Grading lane miles Miles of Upgrade -Aggregate Surfaced Roads Culverts (new and repaired) 15" and larger Tons of asphalt laid Tons of gravel crushed Health and welfare: Social Services Caseload Patient contacts Immunizations Culture and recreation: Visitors -Missile Park County Fair Exhibitors Economic assistance: (3) Headstart clients Migrant Headstart clients Business -type activities: Paramedic Services Patients transported (4) 2003 433,188 76,245 32,476 42.6% 2004 2005 2006 439,146 462,877 466,777 98,692 99,711 100,924 89,099 46,327 68,871 90.3% 46.5% 68.2% 2007 484,412 88,601 30,203 34.1% 2,738 1,387 1,543 1,574 1,606 491 218 206 215 224 371 402 455 579 628 72,396 75,276 79,425 92,045 95,524 1,941 2,012 2,082 1,972 2,000 $201,442 $132,178 $104,225 $399,473 $100,609 440 401 401 160 359 1,406 33,710 78,435 125,225 222,703 126,000 175,910 165,681 164,906 135,779 8 10 0 10 34 240 217 217 242 250 101,243 95,634 95,634 70,421 67,389 510,000 487,477 487,477 408,409 411,582 9,900 14,601 4,600 12,000 15,000 7,500 14,000 11,000 6,900 14,500 30,440 6,360 15,000 11,880 7,165 558 575 575 586 595 2,410 2,410 2,220 2,422 2,326 641 622 562 562 562 146 175 266 266 266 7,060 7,331 7,284 8,375 8,210 Source: Various Weld County Department records. Note: (1) Beginning in 1999 the number of registered voters reflects active voters. (2) Even years represent general elections, odd years coordinated elections. (3) As of 12/31/2009 Headstart responsibilites were relinquished back to the Federal Agency for opearational purposes. (4) As of 05/07/2012 Paramedic Services was transferred by Weld County to Northern Colorado Medical Center Inc. 154 2008 493,544 116,269 106,518 91.6% 2009 478,202 112,276 34,027 30.3% 2010 2011 2012 482,841 541,678 537,483 145,692 101,085 162,517 80,893 42,937 117,121 55.5% 42.5% 72.1% 1,122 1,059 1,084 1,795 1,535 110 98 96 73 105 610 538 570 557 573 99,951 95,383 95,866 93,900 100,230 2,571 1,976 2,143 2,316 2,327 $120,118 $86,794 $392,380 $126,194 $322,183 312 205 416 419 482 94,685 176,786 77,889 89,503 57,474 148,324 152,568 154,602 133,297 157,634 52 33 36 41 16 252 233 264 254 222 67,548 90,664 101,431 86,805 125,668 231,359 282,315 372,709 436,880 270,441 15,500 11,500 7,000 16,000 15,000 7,000 20,500 11,769 8,159 23,017 8,778 7,333 25,500 12,727 4,873 600 600 500 650 600 2,335 2,425 2,383 2,436 2,489 562 562 0 275 180 0 0 0 0 0 8,866 9,214 9,214 9,470 0 155 COUNTY OF WELD STATE OF COLORADO Capital Asset Statistics by Function/Program Last Ten Years 2003 2004 2005 2006 2007 Function/Program General government: Building Square Footage 620,310 684,551 684,551 719,723 725,723 Court rooms 9 10 12 16 16 Information Systems Connections 997 1,240 1,292 1,292 1,292 Public safety: Jail capacity (beds) Patrol cars Radios and cell phones Public works: Miles of Roads Paved Unpaved Un-maintained Grader sheds Motor graders Health and welfare: Alternative fuel vehicles Economic assistance: Headstart sites Business -type activities: Paramedic Services Ambulances (1) 454 386 386 386 386 43 42 46 55 55 947 939 1,140 1,229 1,270 679 671 681 675 670 2,438 2,425 2,394 2,387 2,370 250 252 512 327 492 18 18 18 18 18 29 30 30 30 30 5 6 4 4 4 11 11 11 11 11 10 10 10 10 11 Source: Weld County Department records and Fixed Asset Inventory (1) As of 05/07/2012 Paramedic Services was transferred by Weld County to Northern Colorado Medical Center Inc. 2008 2009 2010 2011 2012 854,081 860,399 984,052 984,052 984,052 17 22 22 21 21 1,320 1,320 1,320 1,320 1,320 760 760 760 779 779 55 62 60 60 62 1,359 1,179 1,220 1,064 1,035 684 674 689 696 717 2,352 2,331 2,307 2,289 2,262 490 493 351 354 355 18 18 18 18 18 30 30 30 30 32 4 5 5 5 7 11 0 0 0 0 11 11 12 12 0 157 COUNTY OF WELD STATE OF COLORADO Insurance in Force December 31, 2012 Name of Company Safety National Casualty Company Lexington One Beacon Policy Number SP 4047371 Policy Period Begins Expires Details of Coverage 12/31/12 12/31/13 Excess Worker's Compensation 20412751 01/01/13 01/01/14 Property damage, automobile liabilities, 7910003550000 1/1/2013 1/1/2014 Excess Liability Liability Limits Employer's Liability $1,000,000/Accident. Worker's Compensation Statutory Limits with County retaining first $750,000 each claim. Property: $100,000,000/$500 deductible Crime: $1,000,000/$500 deductible Excess Liability: $100,000,000 per claim/ $150,000 CAPP deductible Excess $250,000 $10,000,000 liability coverage per occurrence $0 Deductible for liability claims with the exception of: Employment Termination - $10,000 Inverse Condemnation Regulatory Taking - $ 125,000 Herbicide and Pesticide - $2,500 Lawyer's Professional Liabilty - $500 Annual Premium $117,168 $328,588 158 Single Audit COLORADO WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2012 Program Description Department Of Housing and Urban Development Neighborhood Stabilization Project Department Of Agriculture Passed Through the State Of Colorado Department Of Human Services: State Admin Matching Grant for Supplemental Nutrition Assistance Programs Department Of Justice Paul Coverdell Forensic Sciences Improvement Grant Passed Through the State of Colorado Division Of Criminal Justice: Violence Against Women Formula Grants Edward Byrne Memorial Justice Assistance Grant Paul Coverdell Forensic Sciences Improvement Grant Total Department Of Justice Department Of Labor Employment Training Administration Passed Through the State Of Colorado Department Of Labor and Employment: Employment Service Cluster Employment Services/Wagner-Peyser Funded Activities Disabled Veterans Out Reach Program (DVOP) Local Veterans Employment Representative Program Total Employemnt Service Cluster Unemployment Insurance TAA Case Management WIA Cluster WIA Adult Program WIA Youth Activities WIA Dislocated Worker Formula Grant Total WIA Cluster WIA Dislocated Worker H-1 B Job Training Total Department Of Labor Training Administration Department Of Transportation Passed Through the State Of Colorado Department Of Transportation: Road Contracts Environmental Protection Agency Passed Through the State Of Colorado Department Of Health: Surveys, Studies, Investigations and Special Purpose Grants Radon Out Reach Total Environmental Protection Agency FEDERAL Federal CFDA # Expenditure 14.228 370,678 10.561 2,521,227 16.742 96,584 16.588 16.738 16.742 17.207 17.801 17.804 17.225 17.245 17.258 17.259 17.278 51,598 8,000 18,072 174,254 871,604 11,000 8,000 890,604 82,280 26,499 690,333 617,207 608,746 1,916,286 17.260 17,987 17.268 741 2,934,397 20.205 3,115,806 66.034 26,824 66.605 8,106 34,930 WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2012 Program Description Department Of Health And Human Services Passed Through the State Of Colorado Department Of Local Affairs: Community Services Block Grant Passed Through the State Of Colorado Department Of Health: Public Health Emergency Preparedness Tuberculosis Control Programs Family Planning Services Immunizations Cluster Immunizations Cooperative Agreements Immunization - ARRA Total Immunizations Cluster Adult Viral Hepatitis Prevention and Control Center for Disease Control and Prevention Investigation and Technical Assistance Promoting Safe and Stable Families Preventative Health Services Preventative Health and Health Services Block Grant Maternal and Child Health Services Block Grant Non Community Ground Water FDA Tobacco Total Passed Through the State Of Colorado Department Of Health: Passed Through the State Of Colorado Department Of Human Services : OAA -Elder abuse OAA-Ombudsman Supp OAA-D in Home Support Aging Cluster OAA-B Admin/Supportive Services OAA-C-1-Congrate Meals Nutrition Services Incentive Programs Total Aging Cluster Adult Resources for Care and Help OAA-E National Caregiver Substance Abuse and Mental Health Programs TANF Cluster Temporary Assistance for Needy Families Emergency Contingency Fund For TANF State Programs ARRA Total TANF Cluster Child Support Enforcement Low -Income Home Energy Assistance CCDF Cluster Child Care and Development Block Grant Child Care and Development Fund Total CCDF Cluster Child Welfare Services Program Social Services Research and Demonstration Foster Care Title IV -E Adoption Assistance Social Services Block Grant Chafee Foster Care Independence Program Medicaid Assistance Programs Countywide Cost Allocation Total Passed Through the State Of Colorado Department Of Human Services: FEDERAL Federal CFDA # Expenditure 93.569 324,120 93.069 93.116 93.217 93.268 93.712 93.270 93.283 93.556 93.977 93.991 93.994 93.XXX 93.XXX 248,952 7,177 171,932 64,338 24,815 89,153 362 7,500 1,200 10,584 8,350 206,830 1,640 94,799 848,479 93.041 1,517 93.042 4,390 93.043 8,216 93.044 333,169 93.045 298,046 93.053 (44,224) 586,991 93.048 34,223 93.052 89,592 93.243 343,941 93.558 6,049,132 93.714 82,976 6,132,108 93.563 2,042,243 93.568 1,485,564 93.575 555,733 93.596 2,018,321 2,574,054 93.645 231,355 93.647 5,946 93.658 2,798,650 93.659 640,206 93.667 1,965,946 93.674 134,460 93.778 1,512,379 93.XXX 87,559 20,679,340 WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2012 Program Description Passed Through the State Of Colorado Dept of Health Care Policy and Finance: Childrens Health Insurance Programs Medicaid Assistance Programs Total Passed Through the State Of Colorado Dept of Health Care Policy and Finance: FEDERAL Federal CFDA # Expenditure 93.767 93.778 13,122 623,490 636,612 Total Department of Health and Human Services 22,488,551 Corporation For National And Community Services Passed Through the Governor's Commission on Community Service AmeriCorps Department Of Homeland Security Passed Through the State Of Colorado Department Of Local Affairs: Emergency Management Performance 94.006 185,929 97.042 74,150 31,899,922 COUNTY OF W1 d Count y STATE OF COLORADO Year Ended December 31, 2012 Note 1 - Basis of Present at i on: The accompanyi ng schedule of expenditures of Federal awards, whi ch includes the Federal grant activity of W1 d County, is presented on the accrual basis of accounting. The i nformat i on i n this schedule i s presented in accordance with the requirement of the US. Office of 1Vhnagenent and Budget Circular A 133, Audits of States and Local Governments, and Non -Profit Organizations. Therefore, sore anmunt s presented in this schedule may differ from armunt s presented in, or used i n, the preparation of the VC d County, Col or ado's f i nanci al s t at ement s for the year ended December 31, 2012. Note 2 - Sub- Recipient Veld County, Col or ado does not have any si gni f i cant sub- r eci pi ent s. 162 11/4\41p McGee, Hearne & Paiz, LLP Certified Public Accountants and Consultants 314 West 18th Street, Cheyenne, Wyoming 82001-4404 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of County Commissioners Weld County, Colorado Greeley, Colorado We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate discretely presented component unit and remaining fund information of Weld County, Colorado (the "County") as of and for the year ended December 31, 2012, and the related notes to the fmancial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated June 17, 2013. Our report includes a reference to other auditors who audited the financial statements of the Weld County Housing Authority, as described in our report on the County's financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. A deficiency in internal control 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 and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 163 Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Atc_. 74".14 -it_ Cheyenne, Wyoming June 17, 2013 164 11/4\41p McGee, Hearne & Paiz, LLP Certified Public Accountants and Consultants 314 West 18th Street, Cheyenne, Wyoming 82001-4404 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of County Commissioners Weld County, Colorado Greeley, Colorado Report on Compliance for Each Major Federal Program We have audited Weld County, Colorado's (the "County") compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of the County's major Federal programs for the year ended December 31, 2012. The County's major Federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its Federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the County's major Federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major Federal program. However, our audit does not provide a legal determination of the County's compliance. Opinion on Each Major Federal Program In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended December 31, 2012. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as items 2012-01 through 2012-05. Our opinion on each major Federal program is not modified with respect to these matters. 165 The County's response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The County's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major Federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major Federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Cheyenne, Wyoming June 17, 2013 166 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2012 I. SUMMARY OF INDEPENDENT AUDITOR'S RESULTS A. Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weaknesses identified? Yes X No • Significant deficiencies identified that are not considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? B. Federal Awards Internal control over major programs: Yes X No • Material weaknesses identified? Yes X No • Significant deficiencies identified that are not considered to be material weaknesses? Yes X None reported Type of auditor's report issued on compliance for major programs: Unqualified • Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A-133? X Yes No Identification of major programs: CFDA Numbers Name of Federal Program or Cluster 93.659 Adoption Assistance Cluster Temporary Assistance for Needy Families (TANF) Cluster* 93.778 Medical Assistance Program (Medicaid; Title XIX) 93.563 Child Support Enforcement 20.205 Highway Planning and Construction 16.742 Paul Coverdell Forensic Sciences Improvement Grant *This program/cluster contains a portion of Recovery Funds. • Dollar threshold used to distinguish between Type A and Type B programs: $ 956,998 • Auditee qualified as low -risk auditee? X Yes No 167 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2012 II. FINANCIAL STATEMENT FINDINGS None III. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS 2012-01: Temporary Assistance for Needy Families (TANF) Cluster — Special Tests and Provisions Catalog of Federal Assistance (CFDA) Number and Tide: #93.558, #93.714 and #93.716, Temporary Assistance for Needy Families (TANF) Cluster Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Condition: We selected eight case files for testing to ensure proper review was performed by the County in compliance with the State's Work Verification Plan. Of the eight case files selected for testing, we noted the County did not complete seven of the file reviews within the two -month time period required by the State of Colorado. Criteria: The County is required to review a minimum of 5% of the prior month's disbursements to ensure accuracy in accordance with the State's Work Verification Plan, and these reviews are required to be completed within two months of the sample date. Cause: The County did not complete seven of the case file reviews within the required two -month time period. However, we noted that case file reviews were performed on all selections by the date of the audit. Effect: If controls are not in place to ensure the reviews are completed timely by the County, the accuracy of the data used in calculating the work participation rates cannot be verified. As a result, compliance with the State's Work Verification Plan may not be achieved. The U.S. Department of Health and Human Services may penalize the State by an amount not less than 1% and not more than 5% of the grant for violation of this provision. Recommendation: We recommend that the County ensure case file reviews are performed within two months of the sample date. Questioned Costs: None. Auditee Response: Contact: John Kruse, Administrator - Assistance Payments Corrective Action Plan: Weld County concurs with this finding. For a significant portion of the year, one of our Case File Reviewer positions was vacant and our Eligibility Technical Staff experienced considerable turnover. As a result, many of the case files that otherwise would have been screened for errors did not receive this screening, leaving errors of inexperienced staff undetected. We have now hired the Case File Reviewer position and are considering additional steps to ensure that the Case Review schedule is maintained at an optimal level. Anticipated Completion Date: December 2013 168 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2012 2012-02: Temporary Assistance for Needy Families (TANF) Cluster — Special Tests and Provisions Catalog of Federal Assistance (CFDA) Number and Tide : #93.558, #93.714 and #93.716, Temporary Assistance for Needy Families (TANF) Cluster Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name at applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Condition: Of the 40 participants selected for testing, we noted seven instances of participant files that contained Income Eligibility and Verification System (IEVS) discrepancy reports that were not cleared by the County within the required timeframe of 45 days. Criteria: The County is required to initiate a notice of case action or an entry in the case record that no case action is necessary within 45 days of its receipt of an IEVS discrepancy report. Under certain circumstances, action may be delayed beyond 45 days for no more than 20% of the information items targeted for follow-up. Cause: The County did not review open IEVS discrepancy reports contained in participant files within the required 45 day time period. However, we noted the IEVS discrepancy reports were cleared on all selections by the date of the audit. Effect: If the County does not ensure IEVS discrepancy reports are cleared in a timely manner, the County may pay or over compensate a participant who should not be receiving benefits. Recommendation: We recommend that the County ensure IEVS discrepancy reports are cleared within 45 days. Questioned Costs: None. Auditee Response: Contact: John Kruse, Administrator - Assistance Payments Corrective Action Plan: Weld County concurs with this finding. For a significant portion of the year, one of our Case File Reviewer positions was vacant and our Eligibility Technician Staff experienced considerable turnover. As a result, priority was given to the immediate demands of eligibility determination and redetermination. We will continue to identify ways to improve efficiency and to streamline processes to manage caseloads more timely. We will also continue to provide IEVS training to staff. Anticipated Completion Date: December 2013 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2012 2012-03: Temporary Assistance for Needy Families (TANF) Cluster — Eligibility Catalog of Federal Assistance (CFDA) Number and Tide: #93.558, #93.714 and #93.716, Temporary Assistance for Needy Families (TANF) Cluster Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Condition: Of the 40 participants selected for testing, we noted two instances of participant files that did not contain adequate documentation supporting the eligibility determination. Criteria: The County is required to determine client eligibility in accordance with eligibility requirements defined in the approved State plan. Cause: The County did not properly scan the Monthly Status Report into scanned documents or maintain the paper copy to be able to verify that no changes were required to be made to the participants' eligibility from the time of initial application until the date of selected payment. Effect: If controls are not in place to ensure adequate documentation is maintained and proper records are kept on file at the County to support eligibility, the State may be paying claims for ineligible participants. Recommendation: We recommend that the County ensure records are included within scanned documents under the proper client number at the time of original eligibility determination as well as going forward to ensure client records are available for verification and other purposes. Questioned Costs: None. Auditee Response: Contact: John Kruse, Administrator - Assistance Payments Corrective Action Plan: Weld County concurs with this fording. For a significant portion of the year, one of our Case File Reviewer positions was vacant and our Eligibility Technician Staff experienced considerable turnover. As a result, priority was given to the immediate demands of eligibility determination and redetermination. We will continue to identify ways to improve efficiency and to streamline processes to manage caseloads more timely. We have recently implemented an up -front Electronic Content Management system that will assist in minimizing lost or misrouted mail. We will also continue to provide training to staff on required source documentation and to ensure that the Case Review process is thorough and timely in discovering such missing documentation, so that it may be remedied. Anticipated Completion Date: December 2013 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2012 2012-04: Medical Assistance Program — Eligibility Catalog of Federal Assistance (CFDA) Number and Title: #93.778, Medical Assistance Program Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Condition: Of the 60 participant files selected for testing, we noted one file that did not contain adequate documentation supporting the eligibility determination. Criteria: The County is required to determine client eligibility in accordance with eligibility requirements defined in the approved State plan. Cause: The County did not properly scan the identification into scanned documents or maintain the paper copy to be able to verify the accuracy of citizenship proof. Effect: If controls are not in place to ensure adequate documentation is maintained and proper records are kept on file at the County to support eligibility, the State may be paying claims for ineligible participants. Recommendation: We recommend that the County ensure records are included within scanned documents under the proper client number at the time of original eligibility determination to ensure client records are available for verification and other purposes. Questioned Costs: None. Auditee Response: Contact: John Kruse, Administrator - Assistance Payments Corrective Action Plan: Weld County concurs with this finding. For a significant portion of the year, one of our Case File Reviewer positions was vacant and our Eligibility Technician Staff experienced considerable turnover. As a result, priority was given to the immediate demands of eligibility determination and redetermination. We will continue to identify ways to improve efficiency and to streamline processes to manage caseloads more timely. We have recently implemented an up -front Electronic Content Management system that will assist in minimizing lost or misrouted mail. We will also continue to provide training to staff on required source documentation and to ensure that the Case Review process is thorough and timely in discovering such missing documentation, so that it may be remedied. Anticipated Completion Date: December 2013 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2012 2012-05: Medical Assistance Program — Eligibility Catalog of Federal Assistance (CFDA) Number and Title: #93.778, Medical Assistance Program Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Condition: Of the 60 participant files selected for testing, we noted two files in which the information recorded within the Colorado Benefits Management System ("CBMS") did not match documentation contained in the participants' hard copy file. We noted that in both cases the social security number included on the application was not the social security number included in the CBMS system. Criteria: The County is required to determine client eligibility in accordance with eligibility requirements defined in the approved State plan. Cause: The County did not ensure the information within CBMS agreed to the information provided on the participants' applications. Effect: If information contained in the participants' hard copy files does not agree to CBMS, eligibility determinations of the participants contain a discrepancy and the State may be paying claims for ineligible participants. Recommendation: We recommend that the County ensure all applicable data is properly entered into CBMS. Questioned Costs: None. A uditee Response: Contact: John Kruse, Administrator - Assistance Payments Corrective Action Plan: Weld County concurs with this fording. For a significant portion of the year, one of our Case File Reviewer positions was vacant and our Eligibility Technician Staff experienced considerable turnover. As a result, many of the case files that otherwise would have been screened for such data input errors did not receive this screening, leaving errors of inexperienced staff undetected. We have now hired the Case File Reviewer position and are considering additional steps to ensure that the Case Review schedule is maintained at an optimal level. We will also continue to train staff on the importance of accurate input of Social Security Numbers and other key field information. Anticipated Completion Date: December 2013 WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR FEDERAL AUDIT FINDINGS For the Year Ended December 31, 2012 Findings Status 2011-02: Adoption Assistance — Activities Allowed or Unallowed/Allowable Costs/Cost Principles Catalog of Federal Assistance (CFDA) Number and Title: #93.659, Adoption Assistance Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Of the 40 adoption assistance payments selected for testing, one of the payments was made twice to a client in error. Weld County conducts periodic reviews of Year - to -Date payment history from the Trails system, and has not yet identified any subsequent instances of the double -payment of specific services. We will continue to monitor this. 2011-03: Temporary Assistance for Needy Families (TANF) Cluster — Special Tests and Provisions Catalog of Federal Assistance (CFDA) Number and Title: #93.558, #93.714 and #93.716, Temporary Assistance for Needy Families (TANF) Cluster Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable We selected 19 case files for testing to ensure proper review was performed by the County in compliance with the State's Work Verification Plan. Of the 19 case files selected for testing, we noted one instance in which the County did not complete a case file review. Weld County is near the completion of implementing its Up -Front Electronic Content Management system. This system, once it (and its associated document review process) are fully implemented, the possibility of misplacing documents will be greatly reduced, thus further enabling us to conduct the Case File Reviews necessary for accurate case processing. See Finding 2012-01 173 WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR FEDERAL AUDIT FINDINGS (Continued) For the Year Ended December 31, 2010 2011-04: Temporary Assistance for Needy Families (TANF) Cluster — Special Tests and Provisions Catalog of Federal Assistance (CFDA) Number and Title: #93.558, #93.714 and #93.716, Temporary Assistance for Needy Families (TANF) Cluster Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Of the 40 participants selected for testing, we noted six instances of participant files that contained Income Eligibility and Verification System (IEVS) discrepancy reports that were not cleared by the County within the rec uired timeframe. As noted in the similar 2012 finding, "For a significant portion of the year, one of our Case File Reviewer positions was vacant and our Eligibility Technician Staff experienced considerable turnover. As a result, priority was given to the immediate demands of eligibility determination and redetermination. We will continue to identify ways to improve efficiency and to streamline processes to manage caseloads more timely. We will also continue to provide IEVS training to staff." See Finding 2012-02 2011-05: Medicaid Cluster — Eligibility Catalog of Federal Assistance (CFDA) Number and Title: #93.720, #93.775, #93.776, #93.777 and #93.778, Medicaid Cluster Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Of the 60 participant files selected for testing, we noted one file that did not contain adequate documentation supporting the eligibility determin- ation. As noted in the similar 2012 finding, "For a significant portion of the year, one of our Case File Reviewer positions was vacant and our Eligibility Technician Staff experienced considerable turnover. As a result, priority was given to the immediate demands of eligibility determination and redetermination. We will continue to identify ways to improve efficiency and to streamline processes to manage caseloads more timely. We have recently implemented an up -front Electronic Content Management system that will assist in minimizing lost or misrouted mail. We will also continue to provide training to staff on required source documentation and to ensure that the Case Review process is thorough and timely in discovering such missing documentation, so that it may be remedied." Further, we have met with our Medical Assistance sites in order to train and advise them on the proper handling of our required source documentation. See Finding 2012-04 174 Hello