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Illik 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 9 Organization Chart 10 Principal County Officials 11 FINANCIAL SECTION Independent Auditors'Report 13 Management's Discussion and Analysis 15 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Assets 25 Statement of Activities 26 Governmental Fund Financial Statements: Balance Sheet 28 Reconciliation of Total Governmental Fund Balances to the Statement of Net Assets 30 Statement of Revenues, Expenditures and Changes in Fund Balance 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 34 Proprietary Fund Financial Statements: Statement of Net Assets -Proprietary Funds 35 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds 36 Statement of Cash Flows- Proprietary Funds 37 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets 38 Statement of Changes in Fiduciary Net Assets 39 Notes to the Financial Statements 40 Required Supplementary Information Pension Trust 67 Modified Approach for Infrastructure Assets 68 Required Supplementary Information Other Than MD&A: Schedules of Revenues,Expenditures and Changes in Fund Balances-Actual and Budget Major Funds: General Fund 69 Public Works Fund 74 Social Services Fund 76 Human Services Fund 78 Supplemental Information: Combining Statement of Non-major Governmental Funds: Explanation of Funds 81 Combining Balance Sheet 86 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 88 Schedules of Revenues,Expenditures and Changes in Fund Balances-Actual and Budget Non-major Governmental Funds: Special Revenue Funds: Capital Expenditures Fund 90 Conservation Trust Fund 91 Contingent Fund 92 Emergency Fund 93 Public Health Fund 94 Solid Waste Fund 95 Bebee Draw Fund 96 Component Units: Housing Authority 97 E-911 Authority Fund 98 Local Highway Finance Report 100 Combining Statements of Internal Service Funds: Combining Statement of Net Assets - Internal Service Funds 102 Combining Statement of Revenues, Expenses and Changes in Net Assets - Internal Service Funds 104 Combining Statement of Cash Flows - Internal Service Funds 106 Combining Statement of Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities -Fiduciary Funds 108 ii Schedule of Revenues, Expenses and Changes in Fund Equity-Actual and Budget Enterprise Fund and Internal Service Funds: Enterprise Fund: Paramedic Services 109 Internal Service Funds: Motor Vehicle Fund 110 Health Insurance Fund 111 Insurance Fund 112 Phone Service Fund 113 Weld Finance Corporation 114 STATISTICAL SECTION Net Assets by Componet 116 Changes in Net Assets 117 Fund Balances of Governmental Funds 119 Changes in Fund Balances, Governmental Funds 120 Assessed and Estimated Actual Value of Property 121 Property Tax Levies -Direct and Overlapping Governments 122 Principal Taxpayers 123 Property Tax Levies and Collections 124 Direct and Overlapping Governmental Activities Debt 125 Legal Debt Margin Information 126 Private Purpose Revenue Bonds 127 Demographic and Economic Statistics 128 Principal Employers 129 Full-time Equivalent Employees by Function/Program 130 Operating Indicators by Function/Program 131 Capital Asset by Function/Program 132 Insurance in Force 133 SINGLE AUDIT Schedule of Expenditures of Federal Awards 135 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards 140 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 143 Schedule of Findings and Questioned Costs 146 Summary Schedule of Prior Audit Findings 156 Notes to Schedule of Expenditures of Federal Awards 162 iii COLORADO 1 DEPARTMENT OF FINANCE C AND ADMINISTRATION COLORADO PHONE (970) 356-400Q EXT.4218 FAX:(970) 352-0242 P.O. BOX 758 GREELEY, COLORADO 80632 June 1, 2007 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, 2006, 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, 2006 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. 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 legallyseparate entities that have significant operational or financial relationships with the County. These include the 1 Honorable Board of Commissioners Weld County Housing Authority, Weld County Retirement Plan, Beebe Draw 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 Bondi and Company, LLC, 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, 2006, 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 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 2 Honorable Board of Commissioners 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 2006 was approximately 220,000. 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. 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 allay. Control is maintained bythe 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. County Employment. Weld County government employs 1164 regular staff (those receiving standard benefits) and 247 temporary and seasonal employees. Employees receive a comprehensive compensation package, typical of municipal and county governments along the Colorado front range. Benefits include paid leave, medical and dental insurance plans, a defined benefit retirement plan, and a variety of other insurance and noninsurance benefits. 3 Honorable Board of Commissioners MAJOR INITIATIVES For the Year. In 2006, 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 2006: ➢ Began construction of Phase III of the North Jail. ➢ Increased traffic enforcement in Weld County to reduce traffic fatalities. ➢ Coped with the continued growth and development in the County. > Enhanced services at the Southwest Weld County Administration Buildirg. > Implemented strategic transportation system to accommodate growth in County's urbanized areas and use of the transportation impact fees. > Assumed administration of Victim Advocates Program. > Participated in the Juvenile Assessment Center opening in 2006. > Identified technology uses to improve services and costeffectiveness of services. > Enhanced public relations and communication efforts with constituents. > Completed final phase of the 800 MHz radio system. > Continued implementation of e-government strategy. ➢ Was in compliance with the Help America Vote Act (HAVA). > Utilized voting centers in the 2006 primary and general elections. > Constructed and opened Southeast Weld Administration Building. > Constructed and opened Administrative Building for Computer Services and Elections. > Continued to develop plans for the County for bioterrorism and emergency preparedness. > Reinstated Juvenile Diversion Program in District Attorney's Office. > Implemented a stormwater/drainage program in the County. > Coped with growing inmate population. 4 Honorable Board of Commissioners FACTORS AFFECTING FINANCIAL CONDITION Economic Conditions and Outlook. The Weld County and Colorado economies continue to strengthen. Overall the state and local economies are faring well with stronger employment growth, low unemployment, and low inflation. In the last year Upstate Colorado Economic Development reported that 1327 new primary sector jobs were created along with 1955 other indirect jobs for a total of 3282 jobs in Weld County. Employment is expected to grow 2.6% in 2007, and the unemployment rate to stay below 5%. Inflation for Colorado is projected to be around 2.5% in 2007. Weld County had one of the fastest growing rates of population growth in the US in 2005-2006. The rate of growth is estimated to continue at a rate of 3% in 2007, especially in southwest Weld County. Some housing growth has slowed in the Greeley area with higher mortgage interest rates. The main risk for the Weld County economy is that the national economic recovery could stumble. The risks are higher interest rates,energy prices, and the conflicts in the Mideast. Interest rates and energy prices could especially impact consumer spending that has been the driver for the national economy the last few years. The local and state economy could mirror any major shift in the national economy either positive or negative. The federal deficit although still a problem has been reduced some as the economy grows, and tax revenues increase. The state and local government efforts to encourage business expansion and attraction of new business appear to be effective for the state's economy and job market. Employment indicators also point to a rebound and strengthening State economy.The energy industry is strong with high levels of new exploration due to high energy prices. Manufacturing continues to grow in Colorado. Finally, tourism is recovering from the dramatic drop caused by September 11th, and the recession. Weld County's local economy is performing well. The diversity of the local economy away from agriculture has made Weld County much more like the statewide economy and the metro-Denver area. In the last year, Weld County has seen major expansions at Boulder Scientific, Golden Aluminum, Swift, Cambium Learning, and TM Corporation. Owens-Illinois has opened a new bottle manufacturing plant. In March of this year Vestas Wind Systems from Denmark announced that it will locate its North American manufacturing headquarters in Windsor, Colorado to supply wind blades for wind energy farms in all of Northern America. The firm will employee over 400 new employees. In addition to these major projects, a number of small new and existing companies are expanding in Weld County,especially in southwest Weld County. The level of capital investment in Weld County for new facilities and facility expansions bodes well as an indicator of business confidence in the region and should create an environment conducive to continues infrastructure development. For the Future. There are a number of future issues and concerns that will be impacting Weld County in 2007 and in subsequent fiscal years. The continued growth of the County will remain an issue in the coming years, especially as it relates to the ever-increasing demand for services. The issue of growth raises problems of land use allocation, management of the growth, transportation system development, and overall service capacity. As Weld County grows and changes there are issues of quality of life, and the economic development to support the quality of life that the citizens desire. Intergovernmental cooperation and coordination is critical as Weld County changes. This is especially true as Weld County is called upon to provide more municipal type services,that can only be provided functionally and in an equitable manner through metropolitan or special districts. 5 Honorable Board of Commissioners In the area of criminal justice and human services there are a number of emerging troubled areas. The jail population growth is outstripping the county's ability to keep up with the increases,even with the planned new jail expansion being accelerated by one year. Caseload for the Sheriff, District Attorney,and courts is growing at rate that stresses the capacity of these areas. Health and human service issues continue to present many demands with the new demographics of the county. Leadership from the County Commissioners,other elected officials and department heads is critical to come up with creative solutions to allocate the limited resources of the county to maximize service delivery to the citizens of Weld County. As the County grows and service levels increase, staffing requirements are correspondingly impacted. Historically, Weld County has maintained a very low FTE/population ratio. During the past several years,the workload has increased significantly in many departments. The staffing level in some departments has not kept pace with the growth of the County. This strain is beginning to be evident. Another area impacted by growth and staffing increases is the growing need for more facilities to house and accommodate the increased service demands, especially in the southern parts of the County. A new Southeast Weld County Services Center will open the last quarter of this year, but already there is need for more space at the Southwest Weld County Service Center. Another administration building was opened in April, 2006, to meet the needs in the Greeley area. Court and jail facilities continue to put a high demand on capital resources in the County. The transportation infrastructure requirements of the County continue to increase due to aging and growth. The growth has put higher traffic counts onnearly every county road. The strategic road plan has been developed for the major arterials, but all roads are stressed due to growth in volume. The demand in this area will call for very creative solutions in the coming years to accommodate the added traffic that will be generated. 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 those problems. Besides the traditional role of budgeting to responsibly manage available current year funding,there must be a continued emphasis on long-term planning, recognition of the cumulative effects 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. The State of Colorado was granted some fiscal relief from their financial problems with the passage of Referendum C in 2005. With the added revenues from Referendum C the legislature acted very responsibly in restoring many state and local program cuts, especially in the areas of health and human services. The state funding that will flow to counties will provide much needed relief in the health and human service programs. The federal budget and deficit will place additional strain on the state's and local government budgets. The federal government is not increasing, and is even reducing, funding in the domestic program areas. Therefore, the solutions to the federal budget problems, as they impact Weld County, will have to be solved locally. The awarding of federal grant dollars will be come more competitive and will require Weld County to become more aggressive in pursuing federal grants. In response to the growth and reduced federal assistance, Weld County must continue to take a long-term view when examining the county's finances, and expand the horizon beyond just the immediate issues facing the county. This will call for a continued thorough examination of all county programs, and prioritization to show each program's place in the big picture of providing essential services to the citizens of Weld County in the next five years and beyond. 6 Honorable Board of Commissioners Pension Trust Fund Operations. Weld County sponsors a defined benefit pension plan for its employees. Each year,an independent actuary engaged by the pension plan calculates the amount of the annual contribution that Weld County must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. As a matter of policy Weld County fully funds each year's annual required contribution to the pension plan as determined by the actuary. As a result of Weld County's conservative funding policy, Weld County has succeeded as of December 31, 2006, in funding 76.0%percent of the present value of the projected benefits earned by employees. The remaining unfunded amount is being systematically funded over 30 years as part of the annual required contribution calculated by theactuary. Cash Management. Cash temporarily idle during the year was invested in time deposits ranging up to 180 days to maturity. Interest earned on investments of cash held by the County Treasurer was recorded as revenue in the General Fund, with the exception of interest attributed to the other specified funds, and the interest earned on certain deposits held for other taxing authorities. The amount of interest earned was $4,738,228 in 2006. The County's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits are either insured by federal depository insurance or collateralized. All collateral on deposits was held either by the County, its agent or a financial institution's trust department in the County's name. All investments held by the County during the year and at December 31, 2006, are classified in the category of lowest credit risk as defined by the Governmental Accounting Standards Board, except for mutual funds and investment pools which cannot be categorized. Risk Management. During 2006 Weld County continued to be a member of Colorado Counties Casualty and Property Pool. The pool offers full safety and risk management programs to minimize losses,together with 57 other Colorado counties. Effective January 1, 1992,Weld County became self-insured under a State permit for workers' compensation. 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, 2005. This was the twenty-first 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 2006 annual appropriated budget for the eighteenth consecutive year. 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. 7 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 2006 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, 2006. 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, ly Donald D. Warden, Director Finance and Administration 8 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, 2005 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 fmancial reporting. 4 ai STATES maS ST Isti OVUM R President ,t same etmckat Seer Aetna Executive Director 9 c"1 E L V i v v -a " E gO i C O ,^ 0,+`i r VJ o w o 2 Co D C L C m 8 w` c V limmi U) O O o O oo o Z ��/� a E L &' -6 Co U) w b w _ se O Q) d O 3 Ere m N c W5 a � a o vLL. U I I Z _ o CO a) a) IX U wo T C N O@ O = O` - °0 O O U 'in c � ) j a r/O� j 0 0 W L - -r j E O — V! 2 N vJ zt C 00 L N \ o a = cow E o LO g mQ Ec / Q O O U U _ O Cl) x J l = r n V /��1 O v of \J p �n W Z � ` cal w y N .V N c > 0" d m` 3 NJ N c - t0 o •E -2 - E G as 0- E oo ao Way H CO a o o xa IX m pCL U 'E 0 W _ E xi E F-- U I O w— m o o J+ p "J OJ !o C O O 0) co _ ov `Uc b .s 00m cm - ¢ ,. Lu 0 V v (0 O E OO i a) coo c E5 IF a (n co 0 0 occ mo O 0 U ammag fr. R I.- RS O ZCO L 7--,w c _ O O L �..) y 9 U O O O C yn O O O O 9 m "p co a) Z o �- O cJ , E (Tso E CO C - i mm° v O m a cc.) o c — E O O a) :..r. Q Y � — E N `' c om— O V V N — E 0 _c 5 m a m c c W Z N U C OE O ccci d x a Cf '� a�ci x U O Q o W O V ) x a x w Q U w U } d H 2 W Z m p@ c c c w _ O t) C O N C O O C p o o 8 `m m c 1° °ci —' o u a — C N C O L al CZ 5O0cOm E aco `ocoglz ) V W O U c C to c 0 N r , ≥ m N ' ur o m oar c om 'Do ot/oi co o 0 v 'N O W pD _U U m m p c ` z a c a C E c J t c d c c m CO Z ` R 'w ca- w U (6 i E Z--1 O C C ccm 8 y2m ¢ Eaf 00 c m bao a) W CO• C L O E O C E c yE ¢ d `a) n o f ,D ma :n00 ' `! / o C = 0 U u_ Q LL it a vUu. N mm > a o in COUNTY OF WELD STATE OF COLORADO PRINCIPAL COUNTY OFFICIALS December 31, 2006 Board of County Commissioners Mike Geile Robert Masden Glenn Vaad David Long William Jerke County Clerk and Recorder Steve Moreno County Assessor Stan Sessions County Sheriff John Cooke Director of Finance&Administration Donald D. Warden Controller Barbara Connolly Treasurer Don Mueller 11 istr, lURe COLORADO FINANCIAL SECTION XtiAs. COLORADO BONDI & Co. LL, 44 INVERNESS DRIVE EAST (303)799-6826 PHONE EHO EWOOD,COLORADO 150112 CERTIFIED PUBLIC ACCOUNTANTS (800)250.9083 TOLL FREE www.bondico.corn MANAGEMENT CONSULTANTS (303)799-6926 FAX Board of County Commissioners Weld County Greeley, Colorado Independent Auditors' Report We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Weld County, Colorado, as of and for the year ended December 31, 2006, which collectively comprise Weld County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Weld County's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Weld County Housing Authority, which represents 37 percent, 36 percent, and 66 percent, respectively, of the assets, net assets and revenues of the discretely presented component units. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Weld County Housing Authority, is based 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provide a reasonable basis for our opinions. 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, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Weld County, Colorado, as of December 31, 2006, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Affiliate Offices Worldwide 13 Board of County Commissioners Weld County In accordance with Government Auditing Standards, we have also issued our report dated June 20, 2007 on our consideration of Weld County's internal control over financial reporting and on 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 and should be considered in assessing the results of our audit. Management's Discussion and Analysis on pages 15 through 24, the schedule of pension funding progress and employer contributions, the condition assessments of infrastructure, and the budgetary comparison schedules on pages 67 through 79 are not a required part of the bask financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Weld County, Colorado's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, Local Highway Finance Report, schedule of expenditures of federal awards, and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements, Local Highway Finance Report, the budgetary comparison information, and the schedule of expenditures of federal awards have been subjected to the auditing procedures applied in the audit of the basic financial statements. Such information, except for the data included in the financial statements of the Weld County Housing Authority, which financial statements have been audited by other auditors and their report thereon provided to us, is, in our opinion, fairly stated in all material respects in relation to the basic financial statements taken 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 express no opinion on them. Ante&eat June 20, 2007 BONDI& Co. ac 14 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, 2006. 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$294.8 million at the end of 2006. Of this amount, $50.7 million may be used to meet the government's ongoing obligations to citizens and creditors. The remaining $244.1 million is invested in capital assets or restricted by law. • The County's General Fund balance was $11.6 million as of December 31, 2006. Of this amount, $1 million is reserved for emergencies, advances, and encumbrances. • The 2006 General Fund balance is$2.4 million higher than in the previous year. The total fund balance is 16% of 2006 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 fund balance in 2007. 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.The government-wide financial statements are 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 assets presents information on all of the County's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets 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 assets changed during the fiscal year.All changes in net assets 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 distinguish 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 charges (business-type activities). Weld County's governmental activities include general government, public safety, roads and bridges, auxiliary, culture and recreation, and health and human services.The County has one business type activity—operation of the paramedic services. 15 The government-wide financial statements include not only 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,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 activities in 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 ten 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, and Capital Expenditures 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 25 through 34 of this report. 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,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 type of information 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. 16 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 35 through 37 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 38 through 39. 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 69 to 79 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 40 through 65 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 86 through 96 and 102 through 114 respectively. 17 COUNTY-WIDE FINANCIAL ANALYSIS Net Assets. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. As of December 31, 2006, assets exceeded liabilities by $291.9 million. The following table provides a summary of the County's governmental and business-type net assets for 2005 and 2006. Table 1 Net Assets (in Millions) Governmental Activities Business-type Activities Total 2005 2006 2005 2006 2005 2006 Assets Current and other assets $131.42 $148.46 $1.83 $2.44 $133.25 $150.90 Capital assets 237.26 239.20 .81 .85 238.07 240.05 Total assets $368.68 $387.66 $2.64 $3.29 $371.32 $390.95 Liabilities Current and other liabilities $ 79.74 $ 88.66 $ .32 $ .32 $79.64 $88.98 Long-term liabilities 7.44 7.12 .00 .00 7.86 7.12 Total liabilities $ 87.18 $95.78 $ .32 $ .32 $87.50 $96.10 Net Assets Invested in capital assets, of related debt $231.27 $233.63 $ .81 $ .85 $232.08 $234.48 Restricted 10.45 9.70 .00 .00 10.45 9.70 Unrestricted 39.78 48.55 1.51 2.12 41.29 50.67 Total net assets $281.50 $291.88 $2.32 $2.97 $283.82 $294.85 A significant portion of Weld County's net assets (17.2%) represents unrestricted net assets of $50.67 million, which may be used to meet the County's ongoing obligations to citizens and creditors. Another significant portion of the County's net assets (79.5%) 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. The only debt is the certificate of participation for the jail. Weld County has no other debt. 18 An additional$9.7 million of the County's net assets(3.3%)represents resources that are subject to external restrictions on how they may be used. Included in this category are the TABOR emergency reserve of$4.0 million and $1.75 million in reserves for insurance claims. At the end of 2006 Weld County had positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. Changes in Net Assets. Governmental and Business-type activities increased the County's net assets by $11.3 million in 2006. The following table indicates the changes in net assets for governmental and business-type activities in 2005 and 2006. Table 2 Changes in Net Assets (in Millions) Governmental Activities Business-type Activities Total 2005 2006 2005 2006 2005 2006 Revenues Program revenues: Charges for services $33.80 $39.15 $7.83 $7.71 $41.63 $46.86 Operating grants and contributions 27.89 30.05 0.00 0.09 27.89 30.14 Capital grants and contributions 0.00 0.00 0.00 .01 0.00 .01 General revenues: Property taxes 56.38 62.12 0.00 0.00 56.38 62.12 Other taxes 10.36 11.88 0.00 0.00 10.36 11.88 Other revenues 3.04 3.25 0.00 0.00 3.04 3.25 Total revenues $131.47 $146.45 $7.83 $7.81 $139.30 $154.26 Expenses General government $ 23.05 $ 26.64 $0.00 $0.00 $23.05 $26.64 Public safety 30.45 32.56 0.00 0.00 30.43 32.56 Streets and highways 36.92 37.07 0.00 0.00 36.92 37.07 Culture and recreation .77 1.55 0.00 0.00 .77 1.55 Health 8 Welfare 24.84 26.18 0.00 0.00 24.84 26.18 Interest on long-term debt .34 .32 0.00 0.00 .34 .32 Economic Assist 13.74 11.75 0.00 0.00 13.74 11.75 Paramedic services 0.00 0.00 6.37 7.16 6.37 7.16 Total expenses $130.11 $136.07 $6.37 $7.16 $136.46 $143.23 Increase(decrease)in net assets 1.36 10.38 1.46 .65 2.84 11.03 Net Assets 1/1/06 280.13 281.49 .86 2.32 280.99 283.81 Net Assets 12/31/06 $281.49 $291.87 $2.32 $2.97 $283.81 $294.84 Governmental Activities. Governmental activities increased Weld County's net assets by $10.38 million in 2006. Key elements of this increase are as follows: • Total revenues were $146.45 million, up 11.4% from the prior year, primarily due to property taxes ($5.74 million) and charges for services ($5.3 million). 19 • Expenses totaled $136.07 million. This represents a 4.6% increase over the previous year. Increases occurred in most categories due to normal wage and inflation costs, road projects and costs of providing an increased volume of services to a growing citizen base. Business-Type Activities. The County's only business-type activity, Paramedic Services, increased net assets in 2006 by $.65 million. 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, unreserved 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 2006, the combined ending fund balances of County governmental funds was $55.88 million. Approximately 64%of this consists of unreserved fund balance,which is available as working capital and for current spending in accordance with the purposes of the specific funds. The remainder of fund balance is reserved to indicate that it is not available for new spending because it is committed for the following purposes: 1) encumbrances ($14.2 million); 2) a state- constitution mandated emergency reserve ($4.0 million); 3)an advance to the Paramedic Services ($585,000); and 4) prepaid expenses and inventory ($1.1 million). The County has five major governmental funds. These are 1)General Fund; 2)Public Works Fund; 3) Social Services Fund; 4) Human Services Fund; 5) the Capital Expenditure 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 $11.6 million as of December 31, 2006. Of this amount, $585,000 is reserved for advances. The 2006 fund balance is $2.4 million higher than the previous year due to the oil and gas mineral leasing revenues, building permits, and unanticipated earnings on investments from higher interest rates in 2006. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 17% of total 2006 expenditures, while total fund balance is 18.7% 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 $19.4 million in fund balance at the end of 2006. This amount was $3.6 million more than the previous year. 2006 expenditures for road projects were less than budgeted due to delaying the start of the Weld County Road 13 project. 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 $3.1 million balance at the end of 2006 which is 1% more than 2005. The county received higher state allocations and thus revenues for TANF and child welfare. 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. The increase 20 in expenditures for 2006 was primarily attributed to Headstart, Job Services, TANF, and Work Force incentive. 5. Capital Expenditure Fund. The Capital Expenditure Fund accounts for the construction of major capital facilities. These are the Island Grove Regional Park parking lot improvements, completion of the Southeast Weld Service Center and the office building for Information Services and elections. The$18 million jail expansion project was started in 2006 and will be completed in 2007. The fund balance reduction was totally attributed to funding the new jail expansion project as planned. The encumbrances at year end are for the jail expansion project and the addition of the offices for Social Services at the Southeast Weld Service Center. Proprietary Funds Overview The County's proprietary fund statements provide the same information found in the government- wide statements, but in more detail. The County has one enterprise-type fund, The Paramedic Services Fund. Unrestricted net assets of the fund at the end of the year amounted to$(2.1 million). The total increase in net assets for the fund was $.5 million. Other factors concerning the finances of this fund was discussed under business-type activities. 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 Unreserved Fund Balances as of December 31, 2005 and 2006 18 ii�a Y i ii4�{ {,{) !I flti iii t4 ti k {".4tc t!f ii r ' „ 16 *�ltl l*ii'i'9I�ilihil�Ci� ali�iYtl' l�lli 1114lIli!oICtliiPilrllllii�-itI' (�fil;�icirlkl(II4I!IIi!lliiili�'siill!i.lod,i. 14 lli�l'fi1{lnl!t�1II� IIII!ItLIiPill!I'sl,;{j,ljlliillllllilll{I{�II,Ilil11411k{I1llllll!lb.TII!{I i,liYII i, u iwt, ,.in.•: 12 ',i „{ 1al;;lii{b n" U;i 't! ,i�t1n �rGnt!'4ltlirtt itt3ii tlt t 1{i{, . t N {• II!! tI i iVII t`il iFltt ill i4II f3' 1! I , C lI , ina.,ry,+ Dina iii,; ! ,n ❑2005 Q 10 inux asl Tian„ Iltiu u,i lttt, I.0.000000,000,00000y.ilip {IiitBl{ilti0000000,N00,Hi+{iHti iivuii�aii5f 8 ut•tU iiR,iin ,tF{t !tt t iiite ld i i,lilii!({t I i{IAI�P,tiyH,tNi ':! X2006 illt 'l'Ii' , in1llii it !' 'Ili,' ii , ,1{i tl 1 li!{11'i t {'{ tyi{lI"'dill:Mr I 1 Ill i'1'.t {i i 6 —, � r� �, i,ll �,,,, , a� �tii I!•r 3,11 kJ, �I Ii,{i 4 ,{I,IHh, i 'ak it �tlll�h ' 2 — 0 "N p 1I�?JI General Fund Public Works Social Human Capital Other Govt. Services Services Projects Funds The County's budget is prepared according to Colorado statutes. The most significant budgeted fund is the General Fund. In December of 2005, the Board of County Commissioners appropriated $60.4 million for general fund expenditures and other financing uses. 21 Table 3 2006 General Fund Budget (in Millions) Original Budget Amendments Final Budget Actual Revenue and other financing sources $ 61.1 $ 8.5 $ 69.6 $ 72.9 Expenditures and other financing uses $ 60.4 $ 10.9 $ 71.3 $ 70.4 During 2006 mid-year budget amendments included: • $7.5 million in transfers and fund balance for jail expansion project • $0.75 million for Island Grove Park improvements • $1.3 million carry over re-appropriation for election equipment • $0.3 million for new District Attorney staff • $0.22 million for jail overtime • $0.4 million for furniture and equipment for new buildings • Reduced Public Health Department subsidy by $1.5 million • $1.5 million for Motor Pool equipment from Energy Impact Grant • $0.17 million for phone equipment • Supplementals were made for all departments with vehicles for increased fuel costs. The increase was possible because of additional unanticipated revenues. Those revenues include oil and gas mineral leasing ($1.8 million), interest earnings ($.5 million), and building permits ($.7 million). 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, 2006 totals $240.1 million (net of accumulated depreciation). This • investment includes all land, buildings, machinery, equipment, and infrastructure. The total increase in investment in capital assets for the current fiscal year was 1%. Major capital asset events during the current fiscal year including the following: • Road construction or major improvements totaling $2.1 million. • Completed parking lot improvements at Island Grove Regional Park for$.75 million 22 • Began the construction of a 375 bed jail expansion at an estimated cost of$18 million • Completed the Southeast Weld County Service Center for$3.86 million and started an addition for Social Services at the same location for$.8 million • Completed the administrative offices for Information Services and Elections at a cost of$2.13 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 98% 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, 2006, Weld County had only the outstanding long-term debt (principal amount)of$5.57 million in Certificates of Participation (COP),funded by lease payments for the county jail. 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$126.1 million in 2006. The county currently has no debt subject to the limitation. No new debt was issued in 2006. Additional information on Weld County's debt can be found in Note 9. 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 2006 budget. • Construction of Phase III of the North Jail. • Increased traffic enforcement in Weld County to reduce traffic fatalities. • Cope with the continued growth and development in the County. • Enhance services at the Southwest Weld County Administration Building. • Implement strategic transportation system to accommodate growth in County's urbanized areas and use of the transportation impact fees. • Assume administration of Victim Advocates Program. • Participate in the Juvenile Assessment Center opening in 2006. • Identify technology uses to improve services and cost-effectiveness of services. • Enhance public relations and communication efforts with constituents. • Complete final phase of the 800 MHZ radio system. • Continue implementation of e-government strategy. 23 • Be in compliance with the Help America Vote Act (HAVA). • Utilize voting centers in the 2006 primary and general elections. • Continue to explore revenue and operational options to keep the Paramedic Services a viable and affordable service to the citizens. • Construct and open Southeast Weld Administration Building. • Construct and open Administrative Building for Computer Services and Elections. • Continue implementation of CBMS system in Social Services. • Monitor West Nile Virus, but no spraying. • Continue to develop plans for the County for bioterrorism and emergency preparedness. • Reinstate Juvenile Diversion Program in District Attorney's Office. • Implement a stormwater/drainage program in the County. • Cope with growing inmate population. 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, 915 10th Street, Greeley, CO 80631. 24 BASIC FINANCIAL STATEMENTS Cit lURe. COLORADO COUNTY OF WELD STATE OF COLORADO Statement of Net Assets December 31, 2006 Primary Government Component Units Governmental Business-type Housing E-911 Activities Activities Total Authority Authority ASSETS Cash and cash equivalents $ 66,862,515 $ 171,905 $ 67,034,420 $ 1,280,067 $ 2,860,758 Property taxes receivable 70,594,783 - 70,594,783 - - Receivables(net of allowance for uncollectibles) 2,183,567 2,519,244 4,702,811 828,942 - Due from other governments 3,064,212 - 3,064,212 - - Internal balance 262,132 (262,132) - - - Inventories 1,446,495 - 1,446,495 - - Other assets 86,202 5,210 91,412 1,855 179 Restricted assets: Cash and cash equivalents 4,038,450 - 4,038,450 - - Capital assets,net(Note 6) 239,199,820 852,705 240,052,525 13,323 746,233 Total assets 387,738,176 3,286,932 391,025,108 2,124,187 3,607,170 LIABILITIES Accounts payable and other current liabilities 9,500,243 33,213 9,533,456 31,101 71,776 Accrued liabilities 3,404,410 282,937 3,687,347 1,260 - Due to other governments 7,658 - 7,658 - - Unearned revenue 75,276,850 - 75,276,850 58,362 - Other liabilities 22,255 - 22,255 - - Long-term liabilities: Due within one year: Certificates of participation 440,000 - 440,000 - - Compensated absences 88,423 - 88,423 30,688 - Due in more than one year: Certificates of participation 5,133,540 - 5,133,540 .. - Compensated absences 1,990,290 - 1,990,290 - - Total liabilities 95,863,669 316,150 96,179,819 121,411 71,776 NET ASSETS Invested in capital assets,net of related debt 233,626,280 852,705 234,478,985 13,323 746,233 Restricted for: Programs 3,953,450 - 3,953,450 - - Emergencies 4,000,000 - 4,000,000 - - Claims(Note 7) 1,748,951 - 1,748,951 - - Unrestricted 48,545,826 2,118,077 50,663,903 1,989,453 2,789,161 Total net assets $ 291,874,507 $ 2,970,782 $ 294,845,289 $ 2,002,776 $ 3,535,394 See accompanying notes to the basic financial statements 25 COUNTY OF WELD STATE OF COLORADO Statement of Activities Year Ended December 31, 2006 Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Primary government: Governmental activities: General government $ 26,641,373 $ 12,265,623 $ 2,982,627 $ - Public safety 32,562,998 6,378,749 2,871,421 - Streets and highways 37,068,628 4,023,310 9,813,724 - Healthandwelfare 26,179,807 14,949,936 3,156,604 - Culture and recreation 1,549,379 345,990 453,233 - Economic assistance 12,944,150 1,186,129 11,964,541 - Interest on long-term debt 322,293 - - - Total governmental activities 137,268,628 39,149,737 31,242,150 - Business-type activities: Paramedic service 7,156,700 7,710,848 86,922 11,746 Total primary government $ 144,425,328 $ 46,860,585 $ 31,329,072 $ 11,746 Component units: Housing Authority $ 2,910,884 $ 40,415 $ 2,964,276 $ - E-911 Authority 978,164 1,539,651 - - Total component units $ 3,889,048 $ 1,580,066 $ 2,964,276 $ - GENERAL REVENUES Taxes: Property taxes Specific Ownership Other Grants and contributions not restricted to specific programs Unrestricted investment earnings Donated capital assets Transfers Total general revenues Change in net assets Net assets-beginning Net assets-ending See accompanying notes to the basic financial statements 26 Net(Expenses)Revenues and Changes in Net Assets Primary Government Component Units Governmental Business-type Housing E-911 Activities Activities Total Authority Authority $ (11,393,123) $ - S (11,393,123) $ - $ - (23,312,828) - (23,312,828) - - (23,231,594) - (23,231,594) - - (8,073,267) - (8,073,267) - - (750,156) - (750,156) - - 206,520 - 206,520 - - (322,293) - (322,293) - - (66,876,741) - (66,876,741) - - 652,816 652,816 - - $ (66,876,741) $ 652,816 $ (66,223,925) $ - $ - $ - $ - $ - $ 93,807 $ - - - - - 561,487 $ - $ - $ - $ 93,807 $ 561,487 62,124,792 - 62,124,792 - - 6,614,819 - 6,614,819 - - 5,266,786 - 5,266,786 - - 4,539,172 - 4,539,172 - - 7,602 - 7,602 - - (1,300,000) - (1,300,000) - - 77,253,171 - 77,253,171 - - 10,376,430 652,816 11,029,246 93,807 561,487 281,498,077 2,317,966 283,816,043 1,908,969 2,973,907 $ 291,874,507 $ 2,970,782 $ 294,845,289 $ 2,002,776 $ 3,535,394 27 COUNTY OF WELD STATE OF COLORADO Governmental Funds Balance Sheet December 31, 2006 Public Works Social Services General Fund Fund Fund ASSETS Cash and short-term investments $ 17,298,846 $ 18,872,934 $ 6,069,769 Receivables (net of allowance for uncollectibles): Current property taxes 48,168,974 6,993,561 5,591,096 Delinquent property taxes 92,612 13,195 11,565 Accounts 758,675 164,327 57,292 Special assessment - 72,820 - Due from other County funds 298,179 485,310 - Due from other governments 433,321 - 960,288 Advances to other funds 585,000 - - Inventories 108,402 950,125 - Other assets 56,882 - - Total Assets $ 67,800,891 $ 27,552,272 $ 12,690,010 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 6,087,233 $ 339,580 $ 138,733 Accrued liabilities 1,385,461 360,570 131,928 Other liabilities - - 22,255 Due to other County funds 50,733 378,683 808,798 Due to other governments - - 7,658 Deferred revenue 48,374,834 7,083,600 8,508,980 Unexpended grant revenue 325,965 - - Total Liabilities 56,224,226 8,162,433 9,618,352 Fund Balances: Reserved for encumbrances 195,789 2,265,521 - Reserved for advances to other funds 585,000 - - Reserved for other assets 56,882 - - Reserved for inventories 108,402 950,125 - Reserved for emergency - - - Unreserved: General Fund 10,630,592 - - Special Revenue Funds - 16,174,193 3,071,658 Capital Project Fund - - - Total Fund Balances 11,576,665 19,389,839 3,071,658 Total Liabilities and Fund Balances $ 67,800,891 $ 27,552,272 $ 12,690,010 See accompanying notes to the basic financial statements 28 Capital Other Total Human Services Expenditures Governmental Governmental Fund Fund Funds Funds $ - $ 13,652,755 $ 8,740,192 $ 64,634,496 5,865,655 2,595,865 69,215,151 9,634 2,851 129,857 42,008 - 1,016,225 2,038,527 - - - 72,820 379,524 - - 1,163,013 1,670,603 - - 3,064,212 - - 585,000 357,283 - 11,476 1,427,286 1,778 - 12,250 70,910 $ 2,451,196 $ 19,528,044 $ 12,378,859 $ 142,401,272 $ 546,570 $ 1,912,863 $ 148,731 $ 9,173,710 501,065 - 199,634 2,578,658 - - 22,255 33,871 - 108,658 1,380,743 - - - 7,658 412,032 5,884,633 2,675,340 72,939,419 95,959 - - 421,924 1,589,497 7,797,496 3,132,363 86,524,367 19,255 11,730,548 28,051 14,239,164 - - - 585,000 1,778 - 12,250 70,910 - - 11,476 1,070,003 - 4,000,000 4,000,000 - - 10,630,592 840,666 - 5,194,719 25,281,236 861,699 11,730,548 9,246,496 55,876,905 $ 2,451,196 $ 19,528,044 $ 12,378,859 $ 142,401,272 29 COUNTY OF WELD STATE OF COLORADO Reconciliation of Total Governmental Fund Balances To Statement of Net Assets December 31, 2006 Total governmental fund balances $ 55,876,905 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 220,490,344 Long-term liabilities, including bonds payable and compensated absences, are not due and payable in the current period and therefore are not reported in the funds Compensated absences (2,078,713) 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 assets 17,908,193 Internal services used by Enterprise Fund (322,222) Net assets of governmental activities $291,874,507 See accompanying notes to the basic financial statements 30 41trI WUDC COLORADO COUNTY OF WELD STATE OF COLORADO Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended December 31, 2006 Public Works Social General Fund Fund Services Fund REVENUES: Taxes $ 43,487,213 $ 13,256,649 $ 5,563,102 Licenses and permits 2,822,019 366,335 - Intergovernmental 4,857,254 10,812,629 13,521,428 Fines and forfeitures 128,158 - - Charges for services 3,401,287 1,186,687 - Miscellaneous 10,912,304 1,764,962 5 Fees 7,266,357 890,913 - Total Revenues 72,874,592 28,278,175 19,084,535 EXPENDITURES: Current: General government 25,366,204 - - Public Safety 31,122,277 - - Public Works 1,667,522 24,647,634 - Public health and welfare 398,372 - 18,771,595 Culture and recreation 898,091 - - Economic assistance - - - Capital outlay 2,055,803 6,094 42,639 Debt Service 322,293 - - Total Expenditures 61,830,562 24,653,728 18,814,234 Excess of Revenues Over (Under) Expenditures 11,044,030 3,624,447 270,301 Other Financing Sources (Uses): Transfers - in - - - Transfers - out 8,602,470 - - Total Other Financing Sources (Uses) (8,602,470) - - Net Changes in Fund Balance 2,441,560 3,624,447 270,301 Fund Balances at Beginning of Year 9,135,105 15,765,392 2,801,357 Fund Balance at End of Year $ 11,576,665 $ 19,389,839 $ 3,071,658 See accompanying notes to the basic financial statements 32 Capital Other Total Human Expenditures Governmental Governmental Services Fund Fund Funds Funds $ - $ 5,560,007 $ 1,311,210 $ 69,178,181 - - - 3,188,354 11,951,858 1,547,500 3,488,115 46,178,784 - 7,750 135,908 997,919 - 2,646,320 8,232,213 200,893 460,427 39,007 13,377,598 444,809 - 8,602,079 13,150,670 8,012,743 7,492,402 148,893,117 - 25,366,204 - - 759,150 31,881,427 - - - 26,315,156 6,823,995 25,993,962 - - 652,838 1,550,929 12,942,449 - - 12,942,449 12,847,491 28,622 14,980,649 - - - 322,293 12,942,449 12,847,491 8,264,605 139,353,069 208,221 (4,834,748) (772,203) 9,540,048 12,351 9,500,000 1,797,496 11,309,847 - - 4,007,377 12,609,847 12,351 9,500,000 (2,209,881) (1,300,000) 220,572 4,665,252 (2,982,084) 8,240,048 641,127 7,065,296 12,228,580 47,636,857 $ 861,699 $ 11,730,548 $ 9,246,496 $ 55,876,905 33 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, 2006 Net changes in fund balances-total governmental funds $ 8,240,048 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 outlays exceeded depreciation in the current period. Capital asset additions 19,492,417 Depreciation expense (19,578,649) Excess of depreciation over capital outlay (86,232) 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 (128,452) 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. 2,481,212 Internal services used by Enterprise Funds (130,146) Change in assets of governmental activities $ 10,376,430 See accompanying notes to the basic financial statements 34 COUNTY OF WELD STATE OF COLORADO Statement of Net Assets Proprietary Funds December 31,2006 Business-type Governmental Activity Activities Paramedic Enterprise Internal Fund Service Funds ASSETS Cash and short-term investments $ 171,905 $ 6,266,469 Property taxes receivable - 1,249,775 Receivables(net of allowance for uncollectibles): Accounts 2,519,244 72,220 Due from other County funds 709 228,941 Inventory - 19,209 Other assets 5,210 15,292 Total Current Assets 2,697,068 7,851,906 Capital Assets: Land 48,496 - Improvements other than buildings 55,728 485,897 Buildings 656,305 8,975,977 Machinery and equipment 865,002 28,603,822 Accumulated depreciation (772,826) (19,356,220) Total Capital Assets 852,705 18,709,476 Total Assets 3,549,773 26,561,382 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable 33,213 326,533 Accrued liabilities 282,937 825,752 Due to other County funds 63 11,857 Deferred revenue - 1,915,507 Due within one year - 440,000 Advances from general fund 585,000 - Total Current Liabilities 901,213 3,519,649 Noncurrent liabilities: Due in more than one year - 5,133,540 Total noncurrent liabilities - 5,133,540 Total liabilities 901,213 8,653,189 Net Assets Invested in capital assets,net of related debt 852,705 13,135,936 Restricted for: Workers'compensation - 465,826 Unrestricted 1,795,855 4,306,431 Total net assets $ 2,648,560 $ 17,908,193 Some amounts reported for business-type activities in the statement of net assets are different because certain internal service fund assets and liabilites are included with business-type activities. (322,222) Net assets of business-type activities $ 2,970,782 See accompanying notes to the basic financial statements 35 COUNTY OF WELD STATE OF COLORADO Statement of Revenue, Expenses and Changes in Net Assets Proprietary Funds For the fiscal year ended December 31,2006 Business-type Governmental Activity Activities Paramedic Enterprise Internal Fund Service Funds Operating revenues: Contributions $ - $ 7,423,303 Charges for services 7,696,992 7,090,656 Total operating revenues 7,696,992 14,513,959 Operating expenses: Bad debt expense 2,526,967 - Personnel services 3,556,083 130,218 Supplies 269,234 2,046,082 Purchased services 633,776 2,652,406 Insurance and bonds - 438,558 Depreciation 185,558 2,616,687 Other 115,228 287,597 Claims - 7,839,538 Total operating expenses 7,286,846 16,011,086 Operating income(loss) 410,146 (1,497,127) Nonoperating revenues(expenses): Taxes - 997,179 Miscellaneous - 762,531 Interest income - 60,393 Fees 9,169 - State Grant 86,922 815,000 Gain (loss)on disposition of assets 4,687 233,424 Judgements and damages - 108,171 Net increase(decrease)in fair market value -Interest expense - (322,293) Total nonoperating revenues(expenses) 100,778 2,654,405 Income(loss)before contributions or transfers 510,924 1,157,278 Capital contributions 11,746 23,934 Transfers-in - 1,300,000 Changes in net assets 522,670 2,481,212 Total net assets beginning of year 2,125,890 15,426,981 Total net assets at end of year $2,648,560 $ 17,908,193 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. 130,146 Change in net assets of business-type activities $ 652,816 See accompanying notes to the basic financial statements 36 COUNTY OF WELD STATE OF COLORADO Combining Statement of Cash Flows Proprietary Funds For the fiscal year ended December 31,2006 Business-type Govemmental Activity Activites Enterprise Fund Internal Paramedic Services Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers $ 4,946,369 $ 746,024 Cash flows from intemal customers - 13,703,868 Cash payments to external suppliers for goods and services (819,391) (13,149,724) Cash payments to internal suppliers for goods and services (478,297) (259,784) Cash payments to employees for services (3,417,250) (299,324) Judgements/damages/losses - 108,171 Miscellaneous revenues - 50 Net cash provided(used)by operating activities 231,431 849.281 CASHFLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes - 997,179 Grants 77,026 - TransferfromotherCountyFunds - 1,129,558 Repayment of Advance (300,000) - Miscellaneous 13,856 420,000 Net cash provided by noncapital financing activities (209.118) 2,546,737 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (216,876) (5,012,853) Principal paid on long-term debt - (418,354) Interest paid - (322,293) Proceeds from sale of capital assets - 905,448 Grants - 876.436 Net cash provided(used)for capital and related Financing activities (216 876) (3971 614) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments - 402.874 Net Increase(decrease)in Cash and Cash Equivalents (194,563) (172,722) Cash and Cash Equivalents at Beginning of Year 366,468 6 439 192 Cash and Cash Equivalents at End of Year $ 171 905 $ 6 266 47Q Reconciliation of operating income to net cash provided(used)by operating activities: Operating income(loss) $ 410,147 $ (1,326,684) Adjustments to reconcile operating income to net cash provided(used)by operating activities: Depreciation expense 185,558 2,616,687 Judgements/damages/losses - 108,171 Miscellaneous revenue 50 Change in assets and liabilities Increase)decrease in accounts receivable (360,207) (268,015) Increase)decrease in due from other funds (957) (24,351) Increase)decrease in inventories - 22,899 Increase)decrease in other assets (5,210) (11,222) ncrease(decrease)in accounts payable (14,586) (632,844) ncrease(decrease)in accrued liabilities 16,686 22,699 ncrease(decrease)in other liabilities - 2,009 ncrease(dedrease)in deferred revenue - 339.882 Total adjustments (178 716) 2 175,965 Net cash provided by operating activities $ 231 431, $ 849.281, Noncash investing,capital,and financing activities: Contributions of capital assets from(to)government $ 35,680 Capital asset trade-ins $ 19,722 See Accompanying notes to the basic financial statements 37 COUNTY OF WELD STATE OF COLORADO Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2006 Agency Weld County Funds Retirement Plan ASSETS Cash and cash equivalents $4,373,733 $ - Accounts Receivables (net of allowances for uncollectables): - 51,093 Restricted assets Cash - 729,601 Corporate Bonds - 542,536 Common Stock - 81,946,201 US Property Fund - 38,731,927 Total assets $4,373,733 $ 122,001,358 LIABILITIES AND NET ASSETS Accounts payable $ 243,506 $ 136,479 Due to other governments 4,130,227 - Total Liabilities $4,373,733 $ 136,479 NET ASSETS Held in trust for pension benefits and other purposes $ 121,864,879 See accompanying notes to the basic financial statements 38 COUNTY OF WELD STATE OF COLORADO Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the fiscal year ended December 31, 2006 Weld County Retirement Plan Additions: Employer contributions $ 3,205,310 Employee contributions 3,256,503 Earnings on investments 8,691,969 Net appreciation in fair market value of investments 7,545,012 Total Additions 22,698,794 Deductions: Actuarial/Trustee fees 186,787 Benefit payments 6,791,615 Supplies 6,600 Total Deductions 6,985,002 Change in net assets 15,713,792 Net assets- beginning 106,151,087 Net assets-ending $ 121,864,879 See accompanying notes to the basic financial statements 39 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Note 1 - Summary of Significant Accounting Policies: The County of Weld, Colorado ("County") was established in 1861, and on January 1, 1976, became a home rule county under the provisions of Section 30-35-501, CRS, 1973 . The County operates under an elected commissioner form of government. The County provides the full range of 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. The financial statements of the County have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The following summary of significant accounting policies is presented to assist the reader in evaluating the County' s financial statements. A. Reporting Entity: Weld County is a political subdivision of the State of Colorado, governed by an elected five-member Board of County Commissioners. There are also four other elected officials of Weld County (Assessor, Clerk and Recorder, District Attorney, and Sheriff) . The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government' s operations. Each discretely presented component unit is reported in a separate column in the government-wide financial statements (see note below for description) to emphasize that it is legally separate from the government. Discretely presented component units: The Weld County Housing Authority is responsible for assisting Weld County residents with housing assistance. The Board of County Commissioners appoints all of the five-member Housing Authority Board. The County has the ability to remove any of the appointed board members, they can modify decisions made by the board and can hire or fire persons responsible for the day to day operations. The Weld 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 Assembly in 1989. The E911 Emergency Telephone Service Authority Board was created 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 is responsible for administering the operations of the 911 emergency 40 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 telephone service program in Weld County. The authority board consists of seven members with four selected by the Weld County Commissioners, one member each is selected by the City of Greeley, City of Fort Lupton and Weld County Sheriff. Under the by-laws of E911 Authority, Weld County is required to pay all operating costs. They are to maintain all accounts and have accounts audited. State statute requires that all funds be maintained by the Weld County Treasurer. The operation of the E911 authority is done contractually by the Weld County Communication Regional Center. Complete financial statements for each of the individual component units may be obtained at the entity's administrative offices: Weld County Housing Authority 903 6`h Street Greeley, CO 80631 E911 Emergency Telephone Service Authority 1950 O Street Greeley, CO 80631 Because they provide services to or otherwise benefit Weld County, the financial statements of the following organizations are blended into the County financial statements: Weld County Retirement Plan - The Retirement Board consists of five members, two selected by participating employees, two appointed by the Board of County Commissioners, and the fifth being the County Treasurer. The County funds half of the retirement plan, which covers substantially all permanent, full-time employees of Weld County. The operation of the plan is accounted for in the Weld County Retirement Fund, as a Pension Trust Fund. Weld County Finance Corporation - The Weld County Finance 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 lease to the County. The Board of County Commissioners appoints the three-member Board of Directors of the Corporation, and approves all projects undertaken by the Corporation. The members of the Board of Directors are employees of the County. The Beebe Draw Law Enforcement Authority (LEA) was formed by the electors of the LEA on December 3, 1985, in accordance with Section 30-11-401, CRS. The law enforcement authority is a taxing unit created by the county to provide additional law enforcement service by the county sheriff to residents in a developed unincorporated area of the county. The governing board of the law enforcement authority is the five Weld County Commissioners sitting as the governing board of the authority. Law enforcement services to the authority are provided contractually by the county sheriff. 41 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 The Local Improvement Districts (LID) have not been included in the County' s financial statements individually, as they are immaterial, but are included as a blended component unit of Public Works, a special revenue fund. The Board of County Commissioners 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 the improvement. The LID exists only as geographic area within which improvements are constructed and as an administrative subdivision of the county. Having no board of directors, they do not operate in any capacity as an independent governmental entity. The county governing board, Board of County Commissioners, makes all decisions on behalf of this administrative entity. The following related organizations are excluded from the accompanying financial statements because the County' s accountability for these organizations does not extend beyond various appointments . North Colorado Medical Center - The Board of County Commissioners owns land underlying the main facility of the Medical Center, which land is currently leased to the Colorado Hospital Finance Authority as part of the security for financing the bonded indebtedness of the Medical Center. The indebtedness is not an obligation of the Board of County Commissioners and no taxpayer funds or Board of County Commissioners funds are obligated to pay any portion of the principal, premium or interest on the Bonds. The land is leased back from the Authority to the Board of Trustees, a seven member Hospital Board of Trustees appointed by the Board of County Commissioners. The Hospital Board of Trustees has entered into an operating sublease of the ground and facilities with NCMC, Inc. , a 501 (c) (3)entity, with three of its members also serving on the Board of Trustees, which, in turn, has contracted with Banner Health Systems to operate the Medical Center. NCMC has the ability to incur its own debt and its operations are financed totally by patient revenues. Greeley-Weld Airport Authority - The County Commissioners appoint two of the five Airport Authority Board members. The County has contributed approximately 5% of the funds for capital construction. The Authority has full autonomy under Colorado State law, can incur debt, and funds it operations totally from user fees. Weld Library District - The County Commissioners, together with the concurrence of the city councils of seven participating municipalities, appoint the seven-member Library District Board. The Library District Board has total autonomy under the State Library Act to incur debt, establish budgets, and levy property taxes to support the District' s library system. Colorado Counties Casualty and Property Pool (hereinafter referred to as "CAPP" - CAPP was formed July 1, 1986, by an intergovernmental 42 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 agreement by member counties as a separate and independent governmental and legal entity pursuant to the provisions of Article XIV, 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 intergovernmental agreement has the power under Colorado law to make provision for the property and casualty coverage which constitute the functions and services jointly provided by means of the CAPP. The Insurance Commissioner 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 controlling costs by providing specialized governmental risk management services and systems. It is the intent of the members to use member contributions to defend and indemnify, in accordance with the bylaws, 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 members to have CAPP provide needed coverage at reasonable costs. All income and assets of CAPP shall be at all times dedicated to the exclusive benefit of its members. Weld County, through its Insurance Internal Service Fund, recognizes an expense for the amount paid to CAPP annually for these coverages. Weld County is a charter member of CAPP and has been a continuous member since July 1, 1986. B. Government-wide Financial Statements: The County' s basic financial statements consist of government-wide statements, including a statement of net assets and a statement of activities, and fund financial statements which provide a more detailed level of financial information. The government-wide focus is more on the sustainability of the County as an entity and the change in aggregate financial position resulting from activities of the fiscal period. The statement of net assets and the statement of activities display information about the county as a whole. In the government-wide statement of net assets, both the governmental and business-type activities columns are presented on a consolidated basis by column. These statements include the financial activities of the primary government, except for fiduciary activities. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely to a significant extent on fees and charges for support. 43 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 The government-wide statement of activities reflect both the direct expenses and net cost of each function of the County' s governmental activities and business-like 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. Grants and contributions that are restricted to meeting the operational or capital requirements of a particular program and interest earned on grants that is required to be used to support a particular program are included in operating grants and contributions, or capital grants and contributions. Revenues which are not classified as program revenues are presented as general revenues of the County, with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each government function or business segment is self-financing or draws from the general revenues of the County. Fund Financial Statements The financial transactions of the County are recorded in individual funds. A fund is defined as a fiscal and accounting entity with a self- balancing set of accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Separate statements for each fund category - governmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and presented as non-major funds. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund' s principal ongoing operations. The principal operating revenues of the Paramedic enterprise fund and of the government's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. C. Measurement Focus Government-wide, Proprietary and Fiduciary Fund Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund statements. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value 44 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. Revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Under the terms of grant agreements, the County funds certain programs by a combination of specific cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the County's policy to first apply cost- reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. 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 items are considered to be measurable and available only when cash is received by the government. All governmental and business-type activities and enterprise funds of the County follow only FASB Statements and Interpretations issued on or before, not after, November 30, 1989, Accounting Principles Board Opinions, and Accounting Research Bulletins, unless those pronouncements conflict with GASB pronouncements. The County reports the following major governmental funds: The General Fund is the general operating fund of the County which accounts for all financial resources that are not accounted for in other funds. Operations of the County such as public safety, planning and zoning, property valuation, tax collection and distribution, vehicle licensing, County administration, and other activities financed from taxes and general revenues are reflected in this fund. The Public Works Fund records costs related to County road and bridge construction and maintenance except for engineering, which is recorded in the General Fund. By State law, Colorado counties are required to maintain a Road and Bridge Fund and a portion of road 45 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 and bridge taxes is allocated to cities and towns for use in their road and street activities. The Social Services Fund administers human services programs under state and federal regulations. Programs include, but are not limited to, Medicaid, Food Stamps, Foster Care programs, and Temporary Assistance to Needy Families (TANF) . Colorado counties are required by state law to maintain a Social Services Fund. The Human Services Fund primary programs are associated with the Workforce Investment Act (WIA) funded under the Department of Labor, Employment and Training Administration. They also administer all the Head Start programs. The Capital Expenditures Fund accounts for all the County' s construction projects. The County chooses to use the pay as you go plan instead of debt. Property taxes are used to fund the Law Enforcement Center and the expansion of the Detention Center. 46 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 The County reports the following major enterprise fund: The Paramedic Fund operates the paramedic services for the County, which is primarily funded by revenues for services rendered. The County also reports the following fund types: The Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the County on a cost reimbursement basis. The County' s internal service funds report on self-insurance programs for employee health, dental and vision benefits, risk management, unemployment, fleet services, telecommunications and acquisitions of real estate and construction of buildings used by County departments. Services provided and used by internal services funds are not entirely eliminated from the government-wide statement of activities. The primary government program expenses and expenses for the business 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 individuals, private organizations and other governments. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The County has funds held for other local governmental units, employee/employer payroll taxes and a Section 125 plan. The Pension Trust Fund accounts for the activities of the Weld County Retirement Plan, which accumulates resources for pension benefit payments to qualified county employees. The Plan uses the accrual basis of accounting. Employee and employer contributions are recognized as revenues in the period in which the contributions are due. Benefits and refunds are recognized when due and payable in accordance with terms of the Plan. D. Assets, liabilities, and net assets or equity 1. Deposits and investments The Weld County Treasurer maintains a cash and investment pool that is available for use by all County funds except for some agency funds. Each fund's portion of this pool is displayed as "cash and cash equivalents" . Accrued interest receivable is displayed separately. The amount of interest gained through secured investments is credited to the County's General Fund per Colorado State Statutes, with the exception of the Conservation Trust, Capital Expenditures Fund, Liability Insurance Fund and E-911 Authority. "Cash and cash equivalents" for the General Fund 47 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Conservation Trust, Capital Expenditures Fund, Liability Insurance Fund and E-911 Authority are stated at fair value. Any bank accounts not maintained by the Treasurer are displayed as "Restricted Assets" within the appropriate fund and are stated at cost. The County considers cash and cash equivalents in proprietary 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 time without prior notice or penalty, equity in the pool is also deemed to be a cash equivalent. 2. Property Taxes: Property taxes attach as an enforceable lien on property as of January 1 . Taxes were levied on December 20, 2006, and are payable either in two installments due on February 28 and June 15 or in full on April 30. The bill becomes delinquent on March 1, May 1, and June 16 and penalties and interest may 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 all other taxing authorities within the County. In accordance with Section 14-7 of the Weld County Home Rule Charter, all ad valorem tax levies for County purposes, when applied to the total valuation for assessment of the County, shall be reduced so as to prohibit the levying of a greater amount of tax revenue than was levied from ad valorem taxation in the preceding year plus five percent (5%) , except to provide for the payment of bonds and interest. The Board of County Commissioners may submit the question of an increased levy to the County Council and, if in the opinion of a majority of the County Council may grant an increased levy for the County in such amount as it deems appropriate, and the County is authorized to make such increased levy. Any one capital project requiring a capital expenditure out of funds procured by ad valorem taxation equal to a three mill levy for three years, shall be prohibited unless approved by a majority vote of the qualified electors at a general or special election per Section 14-8 of the Weld County Home Rule Charter. 3. Interfund Transactions Transactions between funds that would be treated as revenues, expenditures, or expenses if they involved organizations external to the County are accounted for as revenues, expenditures, or expenses in the funds involved. Transactions which constitute reimbursements of a fund for expenditures or expenses initially made from that fund which are properly applicable to another fund are recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is reimbursed. At year end, outstanding balances between funds are reported as "due to/from other funds" . Interfund balances are generally expected to be repaid within one year of the financial statement date. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances" . 48 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 4. Inventories and Prepaid Items Inventories of governmental funds, which consist of expendable materials held for consumption, are stated at cost utilizing the weighted average cost method. These funds follow the consumption method of accounting whereby expenditures are recorded at the time the inventory items are used. Inventories of proprietary funds are recorded at average cost. Certain payments to vendors reflect cost applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The reserve for emergencies as required by Section 20 to Article X of the Colorado Constitution, also known as the Taxpayer' s Bill of Rights (TABOR) is classified as restricted assets on the balance sheet. 5. Capital Assets Capital assets, which include property, plant equipment, and infrastructure assets (e.g. , roads, bridges and similar items) , are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the County as assets with an initial, individual cost of more than $5, 000 and a useful life of more than one year. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. All reported capital assets, except for gravel roads are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives: Buildings 20-50 years Improvements 20 years Infrastructure - Bridges 50 years Infrastructure - Roads 20 years Equipment 3-5 years Heavy Equipment 10-20 years Statement 34 allows an alternative approach which would reflect a reasonable value of the asset and the cost incurred to maintain the service potential to locally established minimum standards in lieu of depreciation. To elect this option, the County must develop and implement an asset management system which measures, at least every third year by class of asset, if the minimum standards are being maintained. Related disclosures are additionally required as part of the Required Supplementary Information. The County has elected to use the alternative approach only for gravel roads. 49 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 6. Compensated Absences County employees accumulate sick leave and vacation benefits at rates of 8 hours per month and 8 to 16 hours per month, respectively, depending on length of service. In the event of retirement or termination, an employee is paid 100% of accumulated vacation pay. An employee whose date of hire is prior to January 1, 1985, is paid for 50% of accumulated sick leave hours up to the equivalent of one month; if the employee's date of hire is after January 1, 1985, no sick leave is paid upon retirement or termination. Up to 320 hours of annual vacation may be carried over from one year to the next. Compensatory time is granted (except for official, professional, and administrative positions) at the rate of one and one-half hours for each overtime hour worked, not to be accumulated in excess of forty hours. The unpaid sick leave, vacation pay and related benefits at the end of the period will generally not be paid with expendable and available 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 government- wide financial statements. 7. Long-term obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. 8. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Reserves for the County of Weld are recorded up to the maximum equity available in fund balance and consist of: Reserved for Encumbrances: These reserves are established to record purchase orders and commitments outstanding for which the related goods/services have not been received at year end. The reserves recorded at December 31, 2006, include $195, 789, $2, 312, 827, and $11, 730,548 for the General Fund, Special Revenue Funds, and Capital Expenditures Funds, respectively, for a total of $14,239,164 . Reserved for Other Assets: These reserves are established to record all prepaid items. Recorded reserves at December 31, 2006, are $56, 882 and $14, 028 for the General Fund and Special Revenue Funds respectively, for a total of $70, 910 . 50 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Reserved for Inventories: These reserves are established to record the total level of supply inventories. Recorded reserves at December 31, 2006, are $108,402 and $961, 601 for General Fund and Special Revenue Funds respectively, for a total of $1, 070, 003 . Reserved for Advances: These reserves are established to record the total advance between funds. Reserve at December 31, 2006, is $585,000, all recorded in General Fund. Designated Fund Balance: Fund balance designated for subsequent year' s expenditures represents fund balance commitments for appropriated expenditures in excess of anticipated revenue for the year ended December 31, 2007. 9. Net Assets Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition construction of improvements of those assets. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the County or through external restrictions imposed by creditors, grantors, laws or regulations of other governments. The County first applied restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. 10. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Note 2 - Stewardship, Compliance, and Accountability A. Budgetary information An annual budget and appropriation ordinance is adopted by the Board of County Commissioners in accordance with the Colorado State Budget Act and Weld County Home Rule Charter. The budget is prepared on a basis consistent with generally accepted accounting principles. Budgets are established for all Governmental funds, Internal Service funds and the Enterprise Fund. The accounting system is employed as a budgetary management control device during the year to monitor the individual departments. The fund level is the level of classification at which 51 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 expenditures may not legally exceed appropriations, except for the General Fund where the department level of expenditures cannot legally exceed appropriations. During the year, several supplemental appropriations were necessary. All annual appropriations lapse at year end. The Director of Finance and Administration is authorized to transfer budgeted amounts within departments of each fund. Any revisions that alter the total appropriation for a fund or for any General Fund department must be approved by the County Commissioners through a supplemental appropriation ordinance. During 2006, two supplemental appropriation ordinances were enacted. Budget amounts reported in the accompanying financial statements reflect these supplemental appropriations. B. Excess of expenditures over appropriations Housing Authority and E-911 Authority (component units) both had expenditures over appropriations. These expenditures were funded by greater than anticipated revenue. Excesses of expenditures over appropriations in General Fund departments can be seen by unfavorable variances in the expenditures section of the Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual. Solid Waste Fund (Special Revenue Fund) had excess of expenditures over appropriations. These can be seen on the Statement of Revenue, Expenditure and Changes in Fund Balance - Budget and Actual. Weld Finance Corporation (an internal service fund) has a deficit balance at December 31 of $568,626 . The deficit will be recovered through future operations. Note 3 - Equity in Pooled Cash and Investments: A. Cash and Investments Cash and investments at December 31, 2006, consisted of the following: Deposits $16,461,723 CDs 6, 364, 993 Investments 57,225, 031 Total $80, 051,747 Cash and investments at December 31, 2006 reported in government-wide and agency funds consisted of the following: Government-wide $76,765, 827 Agency funds 3,704,542 Total $80,470,369 52 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 B. Deposits The Colorado Public Deposit Protection Act (PDPA) requires that all local governments deposit cash in eligible public depositories. Eligibility is determined by state regulations. The State regulatory commissioners regulate the eligible public depositories. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. PDPA allows the financial institutions to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2006, the County had deposits of $22,545,263 collateralized with securities held by the financial institutions' agents but not in the County name. C. Investments The County is required to comply with State statutes which specify investment instruments meeting defined rating, maturity, custodial and concentration risk criteria in which local governments may invest including: • Obligations of the United States and certain U.S. Agency securities • Certain international agency securities • General obligation and revenue bonds of U.S. local government entities • Banker' s acceptance of certain banks • Commercial paper • Written repurchase agreements collateralized by certain authorized securities • Certain money market funds • Guaranteed investment contracts • Local government investment pools The County has no provisions in its investment policy that would further limit investment choices. At December 31, 2006, the County had the following investments: Investment Maturities (in Years) 1 or less $ 4, 951, 515 1 -2 yrs. 10, 786, 380 3 - 5 yrs. 41,487, 136 Total $57,225, 031 53 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 D. Credit Risk State statutes limit investments in U.S. Agency securities to the highest rating issued by nationally recognized statistical rating organizations (NRSROs) . At December 31, 2006, the County investments in the Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, and Federal Farm Credit Bank were rated AAA by Standard & Poor' s. E. Concentration of Credit Risk State statute does not limit the amount the County may invest in one issuer. At December 31, 2006, the County's investments in Federal National Mortgage Association, Federal Home Loan Bank, and Federal Farm Credit Bank represented 16%, 79% and 5%, respectively of the County's total investments. F. Interest Rate Risk State Statutes limit the maximum maturity date unless an exception is made by the county commissioners, which does not exist at the present time, to five years. The average duration in the portfolio on December 31, 2006 was 2.4 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 mark-to-the-market was within one percent of the county's basis. G. Local Government Investment Pool The County had $16,461,723 invested in overnight pooled money with Wells Fargo on December 31, 2006. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. Substantially all securities owned are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian' s internal records identify the investments owned by the participating governments. Note 4 - Interfund Transactions Due to/from other funds: The county reports interfund balances between many of its funds. Some of the balances are considered immaterial and are aggregated into a single column or row. The sum of all balances presented in the table agrees with the sum of interfund balances presented in the balance sheet for governmental and proprietary funds. The balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Interfund balances are generally expected to be repaid within one year of the financial statement date. 54 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Receivable Fund Payable Fund General Public Works $ 2,424 Social Services 272,476 Human Services 9, 942 Non-Major Governmental 3,453 Enterprise Fund 63 Internal Service Fund 3,281 Public Works General 949 Social Services 134,721 Non-Major Governmental 102,640 Human Services General 2, 350 Social Services 377, 174 Enterprise Fund General 709 Internal Service General 40, 186 Public Works 129,258 Social Services 24,427 Human Services 23, 929 Non-Major Governmental 2,565 Enterprise Fund 8,576 $1,139, 123 Advances from/to other funds: The balance of $585, 000 advances to Paramedic Fund for the General Fund resulted from general operating needs with the decrease of Medicaid reimbursement for services. Receivable Fund Payable Fund Amount General Fund Enterprise Fund - Paramedic $ 585, 000 55 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Transfers in/out: Transfers are indicative of funding for capital projects or subsidies of various County operations and re-allocation of special revenues. The following schedule briefly summarizes the County's transfer activity: Transfers In Human Non-Major Internal Services Capital Governmental Services Total Transfers Out: General Fund $ 12,351 $7,500,000 $1,090,119 $ 00 $8,602,470 Non-Major 00 $2,000,000 $ 707,307 $1,300,000 $4,007,377 Total $ 12,351 $9,500,000 $1,797,496 $1 300,000 $12,609,847 The County also had noncash transfers. Contribution of capital assets from (to) government: Paramedic Services $11,746, Internal Service Funds $23, 934 . Note 5 - Allowance for Uncollectible Accounts Receivable: The allowance for uncollectible receivables consists of the following at December 31, 2006: Allowance for Fund Type Uncollectible General $ 25,253 Special Revenue 7,475 Capital Expenditures 2,597 Enterprise 187,661 Internal Service 483 Total $ 223,469 56 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31,2006 Note 6-Capital Assets: Capital asset activity for the year ended December 31,2006,was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental activites Capital Assets not being depredated Land and water rights $ 8,113,790 $ 993 $ - $ - $ 8,114,783 Gravel Roads 7,008,317 515,539 70,149 - 7,453,707 Construction in progress 2,397,154 6,173,745 - - 8,570.899 Total capital assets not being depreciated 17,519,261 6.690,277 70,149 - 24,139,389 Capital assets being depreciated: Buildings 73,275,942 5,941,977 79,217,919 Improvements 6,053,310 923,654 - 6,976,964 Equipment 36,380,164 7,389,779 3,322,855 (35,007) 40,412,081 Infrastructure 285,457,385 3,969,097 4,870,903 - 284,555,579 Total capital assets being depreciated 401,166,801 18,224,507 8.193.758 (35,007) 411,162,543 Less accumulated depreciation Buildings 20,072,713 1,696,111 - - 21,768,824 Improvements 1,484,777 250,011 - - 1,734,788 Equipment 21,775,076 3,281,206 2,193,886 (23,261) 22,839,135 Infrastructure 138,090,250 13,257,821 1,588.706 - 149,759,365 Total accumulated depreciation 181,422,816 18.485,149 3,782,592 (23,261) 196.102,112 Total capital assets being depreciated,net 219,743,985 (260.642) 4,411.166 (11.746) 215,060,431 Governmental activities capital assets,net $ 237.263 24Q $ 6 429 635 $ 4 481 315 $ (11 746) $ 239 19507n Business-type activities: Capital Assets not being depredated Land $ 48,496 $ - $ - $ - $ 48,496 Capital assets being depreciated: Buildings 656,305 - - - 656,305 Improvements 55,728 - - - 55,728 Equipment 877,263 236.596 283,864 35,007 865,002 Total capital assets being depreciated 1.589,296 236.596 283,864 35,007 1 577.035 Less accumulated depreciation Buildings 289,684 21,566 - - 311,250 Improvements 39,724 3,427 - - 43,151 Equipment 498,741 160,565 264,142 23,261 418,425 Total accumulated depreciation 828,149 185,558 264,142 23,261 772,826 Total capital assets being depreciated,net 761,147 51,038 19,722 11,746 804,209 Business-type activities capital assets,net $ 809 64j $ 51 038 $ 19 727 $ 11 74Q $ 852 7Q, 57 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Depreciation expense was charged to functions/programs of the primary government as follows : Governmental activities: General government $ 1, 081,689 Public safety 1, 003, 805 Streets and highways 13,409,181 Economic assistance 105,774 Culture and recreation 12, 902 Health and welfare 255, 111 Capital Assets held by government' s internal service funds are charged to the various functions based on their usage of the assets 2, 616, 687 Total depreciation expense-governmental activities $ 18,485,149 Business-type activities Paramedic Service $ 185, 558 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. (See Note 11) These activities are accounted for in 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 amount of the loss is reasonably estimable. Insurance coverages have not been significantly reduced from prior years and settlements have not exceeded insurance coverage in the past three years. The County manages risks of loss through a combination of commercial 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 provides health, dental and vision insurance benefits to employees, which are funded by employee and employer contributions. These activities are accounted for in the Health Insurance Fund, an internal service fund. 58 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Workers' Compensation coverage is partially self-insured, with insurance coverage of a $450, 000 self-insured retention. Estimated liabilities for claims made and claims incurred but not reported (IBNR) at year-end are shown as accrued liabilities in the fund. These estimates are based upon a third-party administrator' s review of claims and actuarial projections from historical claims data. Changes in the balances of claims liabilities during the current and prior years are as follows: 2005 2006 Unpaid Claims - Beginning $ 590,417 $ 706,681 Incurred Claims (Includes IBNR'S) 965,406 597,661 Claims Paid (849,142) (613,946) Unpaid Claims - Ending $ 706,681 $ 690,396 The Insurance Internal Service Fund provides protection against losses involving County property, equipment, and liability. Reserves within the fund support higher deductible or self-insured retention level against loss. Payments to CCAPP for coverage under the insurance pool are shown as expenses in the Insurance Internal Service Fund. Estimated liabilities under the $125, 000 self-insured retention for claims made and claims incurred but not reported (IBNR) at year-end are shown as accrued liabilities in the fund. These estimates are based upon CAPP's claim administrator' s review of claims and actuarial projection from historical claims data. Changes in the balances of claims liabilities under the $125, 000 self-insured retention during current and prior years are as follows: 2005 2006 Unpaid Claims - Beginning $ 84,083 $ 83,692 Incurred Claims (Includes IBNR's) 79,305 196,896 Claims Paid (79,696) (160,102) Unpaid Claims - Ending $ 83,692 $ 120,486 The Health Insurance Internal Service Fund covers the county' s dental and vision reimbursement plan. The plan is not an insurance program, but rather an employee reimbursement plan that closes out each year on December 31, for services received on or before that date. No outstanding claims or incurred but not reported liabilities exist for year-end. The health insurance plan is fully insured. In addition the Health Insurance Internal Service Fund as of January 1, 2005, covers the county's health insurance program. The plan is a self- funded employee health benefit plan with a specific deductible amount of $100, 000 per individual, and an aggregate excess loss insurance policy 59 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 that has both a monthly attachment point and an annual cumulative attachment limit with a terminal attachment point. Attachment points are calculated based upon enrollment. The premiums fully fund the cumulative and terminal attachment points, so there is no unfunded liability for the program at any time. The plan is on a claims paid basis, which means there are not any outstanding claims or incurred but not reported liabilities at year end. In no event shall the expense incurral period extend beyond the date the policy expires. Note 8 - Operating Leases : The reporting entity has entered into a number of operating leases which contain cancellation provisions and are subject to annual appropriations. For the reporting period, rent payments approximated $582, 574 for all types of leases. These expenditures were made primarily from the General, Public Works and Social Services Funds. Note 9 - Long-Term Debt: Long-term debt consists of the following at December 31, 2006 Internal Service Fund: Certificates of participation $ 5, 590, 000 Less uncredited discount 16,460 Certificates of participation - net $ 5, 573,540 Certificates of participation represent debt of the Weld County Finance Corporation, an Internal Service Fund and are not general obligations of the County. The certificates were issued to finance the construction of buildings leased to the County under annually renewable operating leases. The debt of the Weld County Finance Corporation is payable from lease payments received from the County. The certificates bear interest at rates ranging from 5% to 5.50% per annum and mature in increasing annual amounts through 2016 . Series 1997 certificates maturing in 2008 or after are callable for redemption prior to maturity in whole or in part at the option of the County in 2007. 60 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Future debt service requirements for the certificates of participation are as follows: Year Principal Interest Total 2007 440, 000 301,293 741,293 2008 460, 000 278, 853 738, 853 2009 485, 000 255, 163 740, 163 2010 510, 000 229, 700 739, 700 2011 540, 000 202,415 742,415 2012-2016 3, 155, 000 539,275 3, 694,275 Total $ 5,590, 000 $ 1, 806, 699 $ 7,396, 699 Weld County has no general bonded indebtedness. In accordance with Section 30-35-201 CRS, 1973, the County' s general bonded indebtedness is limited to 3% of the assessed valuation, or $126, 118,475 at December 31, 2006. The County has issued industrial revenue bonds for the purpose of financing capital projects of several private enterprises. Under terms of a financing agreement, the bonds are sold to a bank, the private enterprise assumes full responsibility for repayment of the debt, and the County is released from any liability for repayment. Industrial revenue bonds outstanding as of December 31, 2006 totaled $11, 634,621. Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2006, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Certificates of participation $ 6,010,000 $ 0 $ 420,000 $ 5,590,000 $ 440,000 Compensated absences General Fund 1,095,927 124,558 49,557 1,170,928 49,183 Public Works 366,458 62,683 50,288 378,853 14,428 Social Services 347,890 44,869 0 392,759 20,973 Public Health 139,986 3,801 7,614 136,173 3,839 Total governmental S 7.960 761 S 23S 911 $ 527 459 $ 7,668 711 $ 528 421 61 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Note 10 - Weld County Retirement Plan: Plan Description: The Weld County Retirement Plan (Plan) is a single-employer, defined 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 available financial report that includes financial statements and required supplementary information. That report may be obtained by contacting the County of Weld, State of Colorado. Funding Policy: The contribution requirements of plan members and the County are established and maintained by the Board of Commissioners. Plan members are required to contribute 7.5% of their annual covered payroll. The County is required to contribute at an actuarially determined rate; the current rate is 7 .5% 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 Required Contributions $ 4,236,858 Interest on net pension obligation (11,754) Annual Pension Cost 4,225,104 Contributions made 3,205,310 Decrease in net pension asset 1,019,794 Net pension obligation (asset) beginning of year (146,922) Net pension obligation (asset) end of year $ 872,872 The annual required contribution for the current year was determined as part of the January 1, 2006 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions 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 3 .5%. The actuarial value of assets was determined using techniques that smooth the effects of short- term volatility in the market value of investments over a five-year period. The unfunded actuarial liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at January 1, 2006, was 30 years. 62 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Three-Year Trend Information: Fiscal Year Annual Percentage of Net Pension Ended Pension APC Contributed Obligation Cost (APC) (Asset) December 31, 2004 3,018,459 74.0% (552,039) December 31, 2005 3,184,753 87.3% (146,922) December 31, 2006 4,225,104 75.9% 872,872 Note 11 - Commitments and Contingencies: Commitments At year-end there were projects under construction with commitments of $11, 881,403 including $916,259 for the Southeast Weld Administration building, $10, 934, 642 for the Jail Phase III, $19,612 for the Court Services Phase III, and a parking lot for $10, 890. Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local governments. The Amendment is complex and subject to judicial interpretation. The entity believes it is in compliance with the requirements of the amendment. However, the entity has made certain interpretations of the amendment' s language in other to determine its compliance. The County participates in a number of federal and state grant programs. Principal funding agencies include Department of Labor, Community Services Administration, Department of Health and Human Services, Department of Housing and Urban Development, Economic Development Agency, and Area Agency on Aging. These programs are subject to program compliance audits by the grantors or their representatives. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the County expects such amounts, if any, to be immaterial. 63 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Note 12 - Public Trustee: Pursuant to an act of the Colorado General Assembly, the Weld 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, 2006 Assets $867,604 Liabilities 1, 071 Fund Balance 866,633 Additions 1,488,163 Deductions 1,596, 937 The Public Trustee started a retirement plan in December 2003 . The plan is a defined contribution plan under Internal Revenue Code section 401 (K) . Funding levels are set at the following: 2004 6% Employer/Employee 2005 7% Employer/Employee 2006 74% Employer/Employee 2007 8% Employer/Employee 64 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2006 Note 13 —Non-Cash Activity in Social Services Fund Schedule of EBT Authorizations, Warrant Expenditures and Total Expenditures For the Year Ended December 31, 2006 A B C D E County EBT Total Refunds and Authorizations plus Expenditures by Expenditures by Total Expenditures County EBT County Share of County Warrant County Warrant Program Authorizations Authorizations or Accrual (Col.A+Col. C) (Col. B+Col. C) Old Age Pension 3,455,473 3,933 137,649 3,593,122 141,58. 2,258,504 216,956 2,475,460 216,95 Low-Income Energy 0 Assistance Program 1,374,461 239,822 2,334,399 3,708,860 2,574,22 Temporary Assistance for Needy Families 6,327 1,265 3,163,995 3,170,322 3,165,26 Administration 8,591,751 1,704,334 7,118,742 15,710,493 8,823,07 Trails/Child Welfare 1,196,046 282,860 52,717 1,248,763 335,57 Core Services 527,345 97,383 (20,796) 506,549 76,58 Aid to the Needy Disabled 2,308,723 2,308,723 2,308,72 IV-D Administration 0 0 CHATS/Child Care 2,921,734 348,933 694,384 3,616,118 1,043,31 General 126,992 126,992 126,99 Assistance 0 0 20,331,641 2,678,530 16,133,761 36,465,402 18,812,29 Subtotal 12,721,471 0 12,721,471 Food Assistance 0 33,053,112 2,678,530 16,133,761 49,186,873 18,812,29 Grand Total 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. 65 a *s; Wilk COLORADO 66 Required Supplementary Information d ' � fejt ,,;,,,,,dR 2 a A a c 4 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2006 Schedule of Funding Progress Actuarial Actuarial Actuarial Unfunded Funde Covered UAAL as a Valuation Value of Accrued AAL (UAAL) d Payroll Percentag Date Assets Liability (b-a) Ratio e of (a) (AAL) (a/b) Covered Entry Age Payroll (b) [b-a)/c] 1/1/01 $ 81,331,388 $ 84,625,354 $ 3,293,966 96.1% $30,909,895 10.7% 1/1/02 $ 87,357,656 $ 93,322,664 $ 5,965,008 93.6% $33,405,430 17.9% 1/1/03 $ 87,140,219 $100,581,108 $13,440,889 86.6% $36,205,613 37.1% 1/1/04 $ 94,496,804 $112,901,278 $18,404,474 83.7% $36,498,310 50.4% 1/1/05 $ 98,604,182 $120,956,120 $22,351,938 81.5% $38,496,866 58.1% 1/1/06 $103,979,296 $136,792,785 $32,813,489 76.0% $41,529,717 79.0% Schedule of Employer Contributions Annual Year Ended Required Actual Percentage December 31 Contribution(') Contribution Contributed 2000 $1, 199, 689 $1, 814,318 151.2% 2001 $1, 591, 067 $1, 925, 094 121.0% 2002 $1, 986, 145 $2, 094, 969 105 .5% 2003 $2, 734,414 $2, 182, 671 79.8% 2004 $3, 125,337 $2,234, 518 71.5% 2005 $4,236, 858 $2, 779, 636 86.1% 2006 $4,236, 858 $3,205, 310 75.7% "Required contribution at beginning of year. 67 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. 2006 Condition Miles of Road %of Total Good 1,526.62 63.5% Fair 845.17 35.2% Poor 33.46 1.3% Comparison of Estimated-to-Actual Maintenance/Preservation 2003 2004 2005 2006 2007 Estimated $ 1,464,400 $ 1,643,167 $ 1,800,000 $ 1,861,200 $ 3,328,512 Actual $ 1,521,710 $ 1,785,000 $ 2,910,000 $ 1,804,000 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. S 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. 68 Required Supplementary Information Other Than MD&A INFORMATION 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, 2006 Budget- GAAP Basis Original Final Actual Variance REVENUES Taxes: General property taxes $ 44,490,317 $ 44,490,317 $ 44,256,360 $ (233,957) Severance tax 25,000 366,500 341,521 (24,979) Tobacco products 85,000 85,000 119,375 34,375 Penalties & interest - 46,000 45,575 (425) Property tax adjustment (1,275,618) (1,275,618) (1,275,618) - Total Taxes 43,324,699 43,712,199 43,487,213 (224,986) Licenses and Permits Liquor licenses 4,000 4,000 3,583 (417) Planning permits 1,000,000 1,000,000 1,042,729 42,729 Building permits 900,000 900,000 1,624,071 724,071 Electrical permits 130,000 130,000 151,636 21,636 Total Licenses and Permits 2,034,000 2,034,000 2,822,019 788,019 Intergovernmental: Federal grants - 49,200 87,074 37,874 Payment in lieu of taxes 2,000 2,000 2,149 149 State grants 2,892,364 4,020,464 4,438,953 418,489 Other governmental units 29,890 29,890 120,529 90,639 Cities and towns 300,000 300,000 208,549 (91,451) Total Intergovernmental 3,224,254 4,401,554 4,857,254 455,700 Charges for Service: Plan checking fees 350,000 350,000 325,925 (24,075) Charges for services 2,480,847 2,512,847 2,938,499 425,652 Sale of supplies 83,900 83,900 109,913 26,013 Parking 34,500 34,500 26,950 (7,550) Total Charges for Services 2,949,247 2,981,247 3,401,287 420,040 Fines and Forfeitures: Property forfeitures/evidence 4,500 4,500 23,432 18,932 Fines (drunk drivers) 149,000 168,000 104,726 (63,274) Total Fines and Forfeitures 153,500 172,500 128,158 (44,342) Miscellaneous: Miscellaneous 1,273,460 2,913,460 4,429,554 1,516,094 Interest 1,500,000 3,500,000 3,879,403 379,403 Rents from buildings 132,761 132,761 130,360 (2,401) Royalties 180,000 2,480,000 2,472,987 (7,013) Total Miscellaneous 3,086,221 9,026,221 10,912,304 1,886,083 69 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, 2006 Budget-GAAP Basis Original Final Actual Variance REVENUES (CONTINUED) Fees: Fee account 6,229,000 7,191,750 7,166,078 (25,672) Treasurer's fees 53,000 53,000 51,868 (1,132) Cable fees 45,000 45,000 48,411 3,411 Total Fees 6,327,000 7,289,750 7,266,357 (23,393) Total Revenues 61,098,921 69,617,471 72,874,592 3,257,121 EXPENDITURES General Government: Office of the Board 598,493 650,493 623,242 27,251 County Attorney 745,305 950,305 923,227 27,078 Public Trustee 7,000 7,000 - 7,000 Planning and zoning 1,592,536 1,848,536 1,814,936 33,600 Clerk to the Board 197,104 250,104 240,393 9,711 County Clerk 727,665 831,265 762,522 68,743 Elections and registration 1,246,880 1,096,880 1,180,948 (84,068) Motor vehicle 1,524,403 1,524,403 1,456,405 67,998 County Treasurer 756,104 762,104 765,991 (3,887) County Assessor 2,296,127 2,371,127 2,318,939 52,188 Maintenance of buildings/grounds 3,861,638 4,186,638 4,007,750 178,888 County Council 28,150 28,150 16,400 11,750 District Attorney 3,818,929 3,916,929 3,822,446 94,483 Juvenile Diversion Grant 112,012 115,012 108,230 6,782 Juvenile Assessment Center - - 14,556 (14,556) Victim Assistance 401,287 420,187 951,923 (531,736) White Collar Crime 30,000 30,000 8,081 21,919 DUI - 10,000 2,747 7,253 MYAT- Probation - 40,000 22,160 17,840 Interagency Oversight Group - - 3,735 (3,735) Financial administration 368,106 368,106 321,743 46,363 General accounting 410,408 476,408 468,074 8,334 Purchasing 121,344 126,344 124,112 2,232 Personnel 575,144 650,144 568,445 81,699 Geographical Information Systems 306,854 213,854 140,039 73,815 Computer Services 1,863,400 2,363,400 2,788,968 (425,568) Printing and Supply 268,562 342,562 318,029 24,533 Total General Government 21,857,451 23,579,951 23,774,041 (194,090) (CONTINUED) 70 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, 2006 Budget-GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED) Public Safety Sheriff administration 1,275,610 1,246,610 1,208,786 37,824 Crime control and investigations 5,890,497 6,130,497 6,544,783 (414,286) Traffic control 925,828 945,828 976,054 (30,226) Task force 169,615 169,615 132,235 37,380 Regional forensic laboratory 212,222 227,222 252,601 (25,379) Communications services 1,619,552 1,619,552 1,604,363 15,189 Communication system development - 200,000 204,063 (4,063) E-911 administration 700 700 55 645 Criminal justice 862,873 862,873 791,950 70,923 County Coroner 554,009 569,009 514,376 54,633 Correctional administration 14,069,825 14,081,825 14,228,456 (146,631) Community correction 2,298,394 2,298,394 2,562,851 (264,457) Building inspection 1,177,544 1,217,544 1,136,237 81,307 Office of emergency management 110,735 110,735 104,693 6,042 Waste water management 11,367 11,367 8,393 2,974 Animal control 257,747 280,747 308,207 (27,460) Pest/weed control 391,946 468,696 462,790 5,906 West Nile - 2,500 2,202 298 Victim Advocates 85,170 95,170 79,182 15,988 Solid waste - - - - Total Public Safety 29,913,634 30,538,884 31,122,277 (583,393) Public Works: General engineering 1,990,434 1,990,434 1,267,117 723,317 Extension services 379,878 379,878 341,152 38,726 Veteran office 60,985 62,985 59,253 3,732 Airport - - - - Total Public Works 2,431,297 2,433,297 1,667,522 765,775 Public Health and Welfare: Mental health 135,875 135,875 91,875 44,000 Developmentally disabled 46,125 46,125 46,125 - Seniors program 12,500 12,500 12,500 - Economic development 100,000 226,800 239,622 (12,822) A Kid's Place 8,250 8,250 8,250 - Total Public Health and Welfare 302,750 429,550 398,372 31,178 Culture and Recreation: Missile site park 65,635 66,635 57,035 9,600 Parks and Trails 13,500 439,500 439,029 471 County fair 292,661 292,661 402,027 (109,366) Total Culture and Recreation 371,796 798,796 898,091 (99,295) 71 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, 2006 Budget-GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED) Miscellaneous: Other 567,528 1,330,528 1,078,943 251,585 Building rents 535,000 535,000 513,220 21,780 Total Miscellaneous 1,102,528 1,865,528 1,592,163 273,365 Capital Outlay: Capital purchases 1,508,184 2,748,184 2,055,803 692,381 Debt Services: Capital lease 322,293 322,293 322,293 - Total Expenditures 57,809,933 62,716,483 61,830,562 885,921 Other Financing Source (Use) Transfers -Out: Appropriation Grants-In-Aid 2,602,470 8,602,470 8,602,470 - Total Other Financing Sources (Uses) (2,602,470) (8,602,470) (8,602,470) - Net Change in Fund Balance 686,518 (1,701,482) 2,441,560 4,143,042 Fund Balance at Beginning of Year 9,135,105 9,135,105 9,135,105 - Fund Balance at End of Year $ 9,821,623 $ 7,433,623 $ 11,576,665 $4,143,042 Notes-The basis of budgeting is the same as GAAP. This schedule is presented on a GAAP basis. 72 a :;kiv COLORADO 73 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, 2006 Budget-GAAP Basis Original Final Actual Variance REVENUES: Taxes: General property taxes $ 6,671,146 $ 6,671,146 $ 6,636,196 $ (34,950) Specific ownership taxes 6,300,000 6,300,000 6,613,155 313,155 Penalties & Interest - - 7,298 7,298 Total Taxes 12,971,146 12,971,146 13,256,649 285,503 Licenses and Permits Moving permits 250,000 330,000 366,335 36,335 Intergovernmental: Mineral leasing 100,000 230,000 277,500 47,500 Grazing act 50,000 50,000 82,097 32,097 Payment in lieu of taxes 50,000 50,000 20,177 (29,823) Grants 1,600,000 1,600,000 1,024,095 (575,905) Motor vehicle registration fees 320,000 320,000 336,936 16,936 Highway user tax fund 8,300,000 8,300,000 9,071,824 771,824 Total Intergovernmental 10,420,000 10,550,000 10,812,629 262,629 Charges for Services: Charges for services - - 1,186,687 1,186,687 Miscellaneous: Earnings on deposits - - 190,026 190,026 Special assessments - - 11,840 11,840 Miscellaneous 2,754,000 2,754,000 1,563,096 (1,190,904) Gain on sale of assets - - - - Recovery of losses 1,000 1,000 - (1,000) Total Miscellaneous 2,755,000 2,755,000 1,764,962 (990,038) Fees: Other fees - - 890,913 890,913 Total Revenues 26,396,146 26,606,146 28,278,175 1,672,029 74 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, 2006 Budget-GAAP Basis Original Final Actual Variance EXPENDITURES Public Works Bridge construction 2,784,357 2,829,357 2,665,449 163,908 Maintenance of condition 4,015,839 4,015,839 5,443,254 (1,427,415) Maintenance support 2,065,447 2,073,447 1,889,907 183,540 Trucking division 3,519,337 3,029,337 2,120,019 909,318 Mining division 2,322,142 2,447,142 1,868,278 578,864 Administration 877,457 1,022,457 1,270,697 (248,240) Other public works 12,589,349 12,859,349 7,751,194 5,108,155 Total Public Works 28,173,928 28,276,928 23,008,798 5,268,130 Intergovernmental: Grants-in-aid to cities/towns 1,528,625 1,628,625 1,638,836 (10,211) Capital outlay - 7,000 6,094 906 Total Expenditures 29,702,553 29,912,553 24,653,728 5,258,825 Net Change in Fund Balance (3,306,407) (3,306,407) 3,624,447 6,930,854 Fund Balances at Beginning of Year 15,765,392 15,765,392 15,765,392 - Fund Balances at End of Year $ 12,458,985 $ 12,458,985 $ 19,389,839 $ 6,930,854 Notes -The basis of budgeting is the same as GAAP. This schedule is presented on a GAAP basis. 75 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, 2006 Budget- GAAP Basis Original Final Actual Variance REVENUES Taxes: General property taxes $ 5,600,000 $ 5,600,000 $ 5,557,416 $ (42,584) Penalties & Interest - - 5,686 5,686 Total Taxes 5,600,000 5,600,000 5,563,102 (36,898) Intergovernmental: Welfare 13,521,300 13,521,300 13,521,428 128 Miscellaneous: Earnings on deposits - - 5 5 Total Miscellaneous - - 5 5 Total Revenues 19,121,300 19,121,300 19,084,535 (36,765) EXPENDITURES Public Health and Welfare: Administrative- regular 4,459,000 4,459,000 2,829,400 1,629,600 Administrative - IV-D 2,006,550 2,006,550 2,308,726 (302,176) Employment first 308,900 308,900 295,213 13,687 General assistance 183,500 183,500 126,993 56,507 TANF 2,599,000 2,599,000 2,574,221 24,779 AND -State 76,000 76,000 76,587 (587) Child welfare 8,464,000 8,464,000 8,823,073 (359,073) Day care 1,022,000 1,022,000 1,043,266 (21,266) 76 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, 2006 Budget- GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED): OAP -A 133,000 133,000 141,581 (8,581) Core services 280,000 280,000 335,578 (55,578) Administrative - LEAP 139,350 139,350 217,574 (78,224) LEAP - Program - - (617) 617 Total Public Health and Welfare 19,671,300 19,671,300 18,771,595 899,705 Capital Outlay 170,000 170,000 42,639 127,361 Total Expenditures 19,841,300 19,841,300 18,814,234 1,027,066 Other Financing Sources (Uses): Net Change in Fund Balance (720,000) (720,000) 270,301 990,301 Fund Balances at Beginning of Year 2,801,357 2,801,357 2,801,357 - Fund Balances at End of Year $ 2,081,357 $ 2,081,357 $ 3,071,658 $ 990,301 Notes-The basis of budgeting is the same as GAAP. This schedule is presented on a GAAP basis. 77 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, 2006 Budget- GAAP Basis Original Final Actual Variance REVENUES Intergovernmental: Federal grants $ 11,287,677 $ 11,784,177 $ 10,655,014 $ (1,129,163) State grants 1,622,715 1,642,115 1,296,844 (345,271) Total Intergovernmental 12,910,392 13,426,292 11,951,858 (1,474,434) Charges for Services: Charges for services 830,155 830,155 997,919 167,764 Total Charges for Services 830,155 830,155 997,919 167,764 Miscellaneous: Donations from private sources 179,575 179,575 157,269 (22,306) Other revenue 20,000 20,000 43,624 23,624 Total Miscellaneous 199,575 199,575 200,893 1,318 Total Revenues 13,940,122 14,456,022 13,150,670 (1,305,352) EXPENDITURES Economic Assistance: Human resources general fund - - 28,355 (28,355) Head start 3,520,000 3,520,000 3,066,338 453,662 Migrant head start 2,814,000 2,814,000 2,355,149 458,851 Colorado Works - - 88,744 (88,744) Preschool program 133,800 133,800 144,416 (10,616) Job service 720,000 720,000 572,856 147,144 Summer job hunt 30,000 31,000 30,999 1 Jobs/New directions 45,000 45,000 43,530 1,470 Employment first 165,000 165,000 134,888 30,112 TANF 585,600 605,000 597,323 7,677 WIA administration 105,000 155,000 154,497 503 WIA adult programs 500,000 520,000 505,874 14,126 WIA youth programs 485,000 600,000 567,999 32,001 JTPA IIB 40,000 45,000 47,027 (2,027) 10% Discretionary Grant - 65,000 57,218 7,782 WIA planning 68,000 80,000 11,521 68,479 WIA statewide activities 62,000 62,000 4,729 57,271 WIA dislocated worker 360,000 430,000 395,935 34,065 Human resources lab pool 260,000 260,000 230,154 29,846 UI training program 171,000 171,000 159,175 11,825 78 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, 2006 Budget- GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED): One stop 178,480 178,480 166,029 12,451 AAA administration 70,453 70,453 68,115 2,338 OAA title III-B 246,750 246,750 217,903 28,847 OAA title Ill-Cl congregate 449,575 449,575 391,193 58,382 OAA title III-C2 46,000 46,000 40,235 5,765 OAA in home support 17,368 17,368 12,886 4,482 AAA elder abuse 2,528 3,528 3,113 415 AAA ombudsman 6,021 8,521 6,025 2,496 Single entry point 527,132 562,132 601,285 (39,153) FTA 123,648 243,648 243,450 198 CHIP Grant - - 10,000 (10,000) NCMC Grant - - 2,703 (2,703) Vale Grant - - 12,751 (12,751) AAA case management 31,000 31,000 13,595 17,405 Transportation - - 15,516 (15,516) AAA state funds 205,858 205,858 186,708 19,150 Medicaid transportation - - 46,389 (46,389) Supplemental foods 1,551,926 1,551,926 1,441,045 110,881 Part E family caregiver support 93,890 93,890 73,341 20,549 CSBG 337,444 337,444 193,440 144,004 Total Economic Assistance 13,952,473 14,468,373 12,942,449 1,525,924 Capital Outlay: Total Capital Outlay - - - - Total Expenditures 13,952,473 14,468,373 12,942,449 1,525,924 Other Financing Sources (Uses): Transfers- In: OAA area agency 12,351 12,351 12,351 - Total Other Financing Sources 12,351 12,351 12,351 - Net Change in Fund Balance - - 220,572 220,572 Fund Balances at Beginning of Year 641,127 641,127 641,127 - Fund Balances at End of Year $ 641,127 $ 641,127 $ 861,699 $ 220,572 Notes -The basis of budgeting is the same as GAAP. This schedule is presented on a GAAP basis. 79 Aftit 'Mc COLORADO 80 Supplemental Information .lihIjis• �N tlii�J 4 w�Ni COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2006 MAJOR GOVERNMENTAL FUND Capital Projects Fund Capital Expenditures Fund: This fund accounts for various capital improvement projects on County property. 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. Contingent Fund: The Contingent Fund records any property tax revenue levied by the Board of County Commissioners to cover reasonably unforseen expenditures. Emergency Fund: The Emergency Fund accounts for the"Emergency Reserve"required by"Amendment One"to the Colorado Constitution. 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. Bebee Draw Law Enforcement Fund This fund 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 81 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2006 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 decided 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 provided to Weld County. 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. Weld Finance Corporation: This fund acquires real estate and constructs buildings for the use of County departments. 82 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2006 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. 83 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2006 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 84 #a *; Ellie COLORADO 85 COUNTY OF WELD STATE OF COLORADO Combining Balance Sheet Non-Major Governmental Funds December 31, 2006 Conservation Contingent Emergency Trust Fund Fund Fund ASSETS Cash and short-term investments $ 163,281 $ 2,852,864 $ 4,000,000 Receivables (net of allowance for uncollectibles): Current property taxes - 2,595,865 - Delinquent property taxes - 2,851 - Accounts - - - Inventories - -Other assets - - - Total Assets $ 163,281 $ 5,451,580 $ 4,000,000 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - $ - Accrued liabilities - - - Other liabilities - - - Due to other County funds - - - Unearned revenue - 2,602,851 - Unexpended grant revenue - - - Total Liabilities - 2,602,851 - Fund Balances: Reserved for encumbrances - - - Reserved for other assets - - - Reserved for inventories - - - Reserved for emergency - - 4,000,000 Unreserved: Designated for future year's expenditure - 2,848,729 - Undesignated 163,281 - - Total Fund Balances 163,281 2,848,729 4,000,000 Total Liabilities and Fund Balances $ 163,281 $ 5,451,580 $ 4,000,000 86 Bebee Draw Total Law Nonmajor Public Health Solid Waste Enforcement Governmental Fund Fund Fund Funds $ 617,420 $ 1,106,335 $ 292 $ 8,740,192 - - - 2,595,865 - - - 2,851 888,025 128,200 - 1,016,225 11,476 - - 11,476 12,250 - - 12,250 $ 1,529,171 $ 1,234,535 $ 292 $ 12,378,859 $ 147,507 $ 1,224 $ - $ 148,731 199,634 - - 199,634 5,704 102,954 - 108,658 72,489 - - 2,675,340 425,334 104,178 - 3,132,363 28,051 - - 28,051 12,250 - - 12,250 11,476 - - 11,476 - - - 4,000,000 - - - 2,848,729 1,052,060 1,130,357 292 2,345,990 1,103,837 1,130,357 292 9,246,496 $ 1,529,171 $ 1,234,535 $ 292 $ 12,378,859 87 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, 2006 Conservation Contingent Emergency Trust Fund Fund Fund REVENUES: Taxes: Taxes $ - $ 1,293,660 $ - Intergovernmental 453,233 - - Charges for services - - - Miscellaneous 9,283 - - Total Revenues 462,516 1,293,660 - EXPENDITURES: Current: Public Safety - - - Public health and welfare - - - Culture and recreation 652,838 - - Capital outlay - - - Total Expenditures 652,838 - - Excess of Revenues Over(Under) Expenditures (190,322) 1,293,660 - Other Financing Sources (Uses): Transfers - In - - - Transfers -Out - 3,300,000 - Total Other Financing Sources (Uses) - (3,300,000) - Net Change in Fund Balances (190,322) (2,006,340) - Fund Balances at Beginning of Year 353,603 4,855,069 4,000,000 Fund Balances at End of Year $ 163,281 $ 2,848,729 $ 4,000,000 88 Bebee Draw Total Law Nonmajor Public Health Solid Waste Enforcement Governmental Fund Fund Fund Funds $ - $ - $ 17,550 $ 1,311,210 3,034,882 - - 3,488,115 1,393,812 1,252,508 - 2,646,320 37,474 - - 46,757 4,466,168 1,252,508 17,550 7,492,402 741,650 17,500 759,150 6,823,995 - - 6,823,995 - - 652,838 28,622 - - 28,622 6,852,617 741,650 17,500 8,264,605 (2,386,449) 510,858 50 (772,203) 1,797,496 - - 1,797,496 - 707,377 - 4,007,377 1,797,496 (707,377) - (2,209,881) (588,953) (196,519) 50 (2,982,084) 1,692,790 1,326,876 242 12,228,580 $ 1,103,837 $ 1,130,357 $ 292 $ 9,246,496 89 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, 2006 Budgeted Original Final Actual Variance REVENUES General property taxes $ 5,575,000 $ 5,575,000 $ 5,552,840 $ (22,160) Penalties & interest - - 7,167 7,167 Total Taxes 5,575,000 5,575,000 5,560,007 (14,993) Grant - 1,500,000 1,547,500 47,500 Fees 1,500,000 - 444,809 444,809 Earnings on deposits 100,000 100,000 460,427 360,427 Total Revenues 7,175,000 7,175,000 8,012,743 837,743 EXPENDITURES Capital Outlay: Buildings 16,758,801 26,258,801 12,847,491 13,411,310 Total Expenditures 16,758,801 26,258,801 12,847,491 13,411,310 Other Financing Sources (Uses): Transfers - In: General Fund - 7,500,000 7,500,000 - Contingent Fund - 2,000,000 2,000,000 - Total Other Financing Sources - 9,500,000 9,500,000 - Net Change in Fund Balance (9,583,801) (9,583,801) 4,665,252 14,249,053 Fund Balance at Beginning of Year 7,065,296 7,065,296 7,065,296 - Fund balance at End of Year $ (2,518,505) $ (2,518,505) $ 11,730,548 $ 14,249,053 90 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, 2006 Budgeted Original Final Actual Variance REVENUES Intergovernmental: State lottery $ 365,000 $ 365,000 $ 453,233 $ 88,233 Miscellaneous: Earnings on deposits 14,000 14,000 9,283 (4,717) Total Revenues 379,000 379,000 462,516 83,516 EXPENDITURES Culture and Recreation: Land improvements 379,000 679,000 652,838 26,162 Total Expenditures 379,000 679,000 652,838 26,162 Net Change in Fund Balance - (300,000) (190,322) 109,678 Fund Balances at Beginning of Year 353,603 353,603 353,603 - Fund balances at End of Year $ 353,603 $ 53,603 $ 163,281 $ 109,678 91 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, 2006 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes $ 1,300,000 $ 1,300,000 $ 1,292,487 $ (7,513) Penalties & Interest - - 1,173 1,173 Total Taxes 1,300,000 1,300,000 1,293,660 (6,340) Total Revenues 1,300,000 1,300,000 1,293,660 (6,340) EXPENDITURES Miscellaneous 6,150,000 2,850,000 - 2,850,000 Total Expenditures 6,150,000 2,850,000 - 2,850,000 Other Financing sources (Uses): Transfers - Out: Other - 3,300,000 3,300,000 - Total Other Financing (Uses) - (3,300,000) (3,300,000) - Net Change in Fund Balance (4,850,000) (4,850,000) (2,006,340) 2,843,660 Fund Balances at Beginning of Year 4,855,069 4,855,069 4,855,069 - Fund Balances at End of Year $ 5,069 $ 5,069 $ 2,848,729 $ 2,843,660 92 COUNTY OF WELD STATE OF COLORADO Emergency Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2006 Budgeted Original Final Actual Variance REVENUES Taxes: Total Revenues - - - - EXPENDITURES 4,000,000 4,000,000 - 4,000,000 Other Financing Sources (Uses): Transfers - In: Non-Departmental - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balance (4,000,000) (4,000,000) - 4,000,000 Fund Balances at Beginning of Year 4,000,000 4,000,000 4,000,000 - Fund Balances at End of Year $ - $ - $ 4,000,000 $ 4,000,000 93 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 31,2006 Budgeted Original Final Actual Variance REVENUES Intergovernmental: State grants $ 2,322,507 $ 3,262,008 $ 3,034,882 $ (227,126) Counties 2,590,119 1,090,119 - (1,090,119) Total Intergovernmental 4,912,626 4,352,127 3,034,882 (1,317,245) Charges for Services: Charges for services 1,165,648 1,162,391 1,393,812 231,421 Total Charges for Services 1,165,648 1,162,391 1,393,812 231,421 Miscellaneous: Fees and fines - - 7,750 7,750 Other 21,500 1,500 4,427 2,927 Donations - 15,000 25,297 10,297 Total Miscellaneous 21,500 16,500 37,474 20,974 Total Revenues 6,099,774 5,531,018 4,466,168 (1,064,850) EXPENDITURES Public Health and Welfare: Public health administration 146,000 171,516 338,138 (166,622) Health education 413,355 1,584,256 1,245,569 338,687 Nursing 4,179,133 3,487,108 3,061,244 425,864 Environmental health 2,068,663 2,341,549 2,179,044 162,505 Total Public Health and Welfare 6,807,151 7,584,429 6,823,995 760,434 Capital Outlay: Environmental health - - 28,622 (28,622) Total Capital Outlay - - 28,622 (28,622) Total Expenditures 6,807,151 7,584,429 6,852,617 731,812 Other Financing Sources(Uses): Transfers-In: Non Departmental 707,377 707,377 1,797,496 1,090,119 Total Other Financing Sources 707,377 707,377 1,797,496 1,090,119 Net Change in Fund Balance - (1,346,034) (588,953) 757,081 Fund Balances at Beginning of Year 1,692,790 1,692,790 1,692,790 - Fund Balance at End of Year $ 1,692,790 $ 346,756 $ 1,103,837 $ 757,081 94 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, 2006 Budgeted Original Final Actual Variance REVENUES Landfill surcharge $ 1,350,000 $ 1,350,000 $ 1,252,508 $ (97,492) Total Revenues 1,350,000 1,350,000 1,252,508 (97,492) EXPENDITURES Miscellaneous: Solid waste 577,651 577,651 692,191 (114,540) Code enforcement 64,972 64,972 49,459 15,513 Total Miscellaneous 642,623 642,623 741,650 (99,027) Capital Outlay: Code enforcement • - - - - Total Expenditures 642,623 642,623 741,650 (99,027) Other Financing Sources (Uses): Transfers- Out: Health department 707,377 707,377 707,377 - Total Other Financing Sources (Uses) (707,377) (707,377) (707,377) - Net Change in Fund Balance - - (196,519) (196,519) Fund Balances at Beginning of Year 1,326,876 1,326,876 1,326,876 - Fund Balances at End of Year $ 1,326,876 $ 1,326,876 $ 1,130,357 $ (196,519) 95 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, 2006 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes $ 16,284 $ 16,284 $ 15,857 $ (427) Specific ownership taxes 1,700 1,700 1,664 (36) Penalties & Interest - - 29 29 Total Revenues 17,984 17,984 17,550 (434) EXPENDITURES Miscellaneous 17,984 17,984 17,500 484 Total Expenditures 17,984 17,984 17,500 484 Net Change in Fund Balance - - 50 50 Fund Balances at Beginning of Year 242 242 242 - Fund Balances at End of Year $ 242 $ 242 $ 292 $ 50 96 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, 2006 Budgeted Original Final Actual Variance REVENUES Intergovernmental: Federal Grants $ - $ - $ - $ - State Grants 2,700,000 2,700,000 2,964,276 264,276 Total Intergovernmental 2,700,000 2,700,000 2,964,276 264,276 Miscellaneous: Earnings on deposits - - 13,830 13,830 Miscellaneous 234,868 234,868 26,585 (208,283) Total Miscellaneous 234,868 234,868 40,415 (194,453) Total Revenues 2,934,868 2,934,868 3,004,691 69,823 EXPENDITURES Rent assistance 2,700,000 2,700,000 2,563,820 136,180 Supplies 217,762 217,762 346,566 (128,804) Depreciation 500 500 498 2 Total Expenditures 2,918,262 2,918,262 2,910,884 7,378 Net Change in Fund Balance 16,606 16,606 93,807 77,201 Fund Balances at Beginning of Year 1,908,969 1,908,969 1,908,969 - Fund Balances at End of Year $ 1,925,575 $ 1,925,575 $ 2,002,776 $ 77,201 97 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, 2006 Budgeted Original Final Actual Variance REVENUES Miscellaneous: Earnings on deposits 50,000 50,000 120,709 70,709 Charge for service 1,320,000 1,320,000 1,418,942 98,942 Total Revenue 1,370,000 1,370,000 1,539,651 169,651 EXPENDITURES Depreciation 103,000 103,000 107,657 (4,657) Purchased services 974,565 974,565 570,735 403,830 Supplies 7,600 7,600 49,772 (42,172) Grants and donations 250,000 250,000 250,000 Capital Outlay 483,000 483,000 - 483,000 Total Expenditures 1,818,165 1,818,165 978,164 840,001 Net Change in Fund Balance (448,165) (448,165) 561,487 1,009,652 Fund Balances at Beginning of Year 2,973,907 2,973,907 2,973,907 - Fund Balances at End of Year $ 2,525,742 $ 2,525,742 $ 3,535,394 $ 1,009,652 98 at WIIDe COLORADO Financial Planning 02101 The public report burden for this infomation collection is estimated to average 380 hours annually. Font#350-050-36 City or County: Weld County LOCAL HIGHWAY FINANCE REPORT YEAR ENDING: December 2006 This Information From The Records Of County of Weld: Prepared By: Barbara Connolly Phone: (970)356-4000 ext 4445 I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE A. Local B. Local C. Receipts from D. Receipts from ITEM Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 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 hi hway a oses II. RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: I. Local highway-user taxes I. Capital outlay(from page 2) 7558734 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 12597258 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 1253724 3. Other local imposts(from page 2) 13268489 c. Other 328384 4. Miscellaneous local receipts(from page 2) 4197057 d. Total (a.through c.) 1582108 5. Transfers from toll facilities 4. General administration&miscellaneous 2915627 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds-Original Issues 6. Total (I through 5) 24653727 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) 17465546 b. Redemption B. Private Contributions c. Total a.+b. 0 C. Receipts from State government 2. Notes: (from page 2) 10432855 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) 379774 c. Total(a.+b.) 0 E. Total receipts(A.7+B+C+D) 28278175 3. Total (I.c+2.c) 0 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements(A.6+B.3+C+D) 24653727 IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) Opening Debt Amount Issued Redemptions Closing Debt A. Bonds Total 0 I. Bonds(Refunding Portion) B. Notes(Total) 0 V. LOCAL ROAD AND STREET FUND BALANCE A.Beginning Balance B.Total Receipts C.Total Disbursements D.Ending Balance E.Reconciliation 15765393 28278175 24653727 19389841 0 Notes and Comments: FORM FHWA-536(Rev.1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 100 STATE: Colorado LOCAL HIGHWAY FINANCE REPORT YEAR ENDING(mm/yy): December 2006 II. RECEIPTS FOR ROAD AND STREET PURPOSES-DETAIL ITEM AMOUNT ITEM AMOUNT A.3. Other local im r osts: A.4. Miscellaneous local recei i ts: a. Property Taxes and Assessments 6,655,334 a. Interest on investments 190,026 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 1,186,687 5.Specific Ownership&/or Other 6,613,155 g. Other Misc.Receipts 1,257,248 6. Total(I.through 5.) 6,613,155 h. Other 1,563,096 c. Total a.+b. 13,268,489 i. Total a.through h. 4,197,057 (Carry forward to,a a I) (Carry forward to,a a I) ITEM AMOUNT ITEM AMOUNT C. Recei i ts from State Government D. Recei r ts from Federal Government I. Hi:hwa -user taxes 9071824 1. FHWA from Item I.D.5. 2. State general funds 2. Other Federal agencies: 3. Other State funds: _ a. Forest Service 82,097 a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 336936 d. Federal Transit Admin d.Other (Specify) 1024095 e. U.S.Corps of Engineers e. Other(Specify) f. Other Federal 297,677 E Total(a.through e.) 1361031 g. Total(a.through f.) 379,774 4. Total 1.+2.+3. 10432855 3. Total I.+2.: (Carty forward to page I) III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES-DETAIL ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM a c A.1. Capital outlay: a. Right-Of-Way Costs 95,978 95,978 b. En ineerin Costs 1,418,134 1,418,134 c. Construction: (I).New Facilities 5,450,939 5,450,939 (2). Capacity Improvements 593,683 593,683 (3). System Preservation 0 (4). System Enhancement&Operation 0 (5). Total Construction (I)+(2)+(3)+(4) 0 6,044,622 6,044,622 d. Total Ca ital Outla Lines I.a.+I.b.+1.c.5 0 7,558,734 7,558,734 (Carry forward to page I) Notes and Comments: FORM FHWA-536(Rev.1-05) PREVIOUS EDITIONS OBSOLETE 101 COUNTY OF WELD STATE OF COLORADO Combining Statement of Net Assets Internal Service Funds December 31, 2006 Motor Vehicle Health Fund Insurance Fund Insurance Fund ASSETS Current Assets: Cash and cash equivalents $ 90,283 $ 3,526,103 $ 1,405,882 Receivables (net of allowances for uncollectables): Current property taxes - - 1,248,009 Delinquent property taxes - - 1,766 Accounts 66,837 - - Due from other county funds 204,514 - 5,622 Inventories 19,209 -Other assets - - 15,292 Total current assets 380,843 3,526,103 2,676,571 Fixed assets: Improvements other than buildings 485,897 - - Buildings 1,800,977 - - Machinery and equipment 27,172,704 - - Accumulated depreciation (15,985,689) - - Total Fixed Assets 13,473,889 - - Total assets $ 13,854,732 $ 3,526,103 $ 2,676,571 LIABILITIES AND NET ASSETS Current Liabilities: Accounts payable $ 148,735 $ 7,635 $ 148,096 Accrued liabilities - - 810,882 Due to other county funds 8,576 - - Unearned revenue - - 1,251,767 Unexpended grant revenue - 663,740 - Current portion of long-term debt - - - Total Current Liabilities 157,311 671,375 2,210,745 Long-term liabilities: Certificates of participation - - - Total Long-term Liabilities - - - Total Liabilities 157,311 671,375 2,210,745 Net Assets Invested in capital assets, net of related debt 13,473,889 - - Restricted for: Workers'compensation - - 465,826 Unrestricted 223,532 2,854,728 - Total net assets 13,697,421 2,854,728 465,826 102 Phone Services Weld Finance Total Internal Fund Corporation Service Funds $ 1,241,856 $ 2,345 $ 6,266,469 - 1,248,009 - - 1,766 5,383 - 72,220 18,805 - 228,941 - 19,209 - 15,292 1,266,044 2,345 7,851,906 - 485,897 7,175,000 8,975,977 1,431,118 - 28,603,822 (1,198,100) (2,172,431) (19,356,220) 233,018 5,002,569 18,709,476 $ 1,499,062 $ 5,004,914 $ 26,561,382 $ 22,067 $ - $ 326,533 14,870 - 825,752 3,281 - 11,857 - 1,251,767 663,740 440,000 440,000 40,218 440,000 3,519,649 5,133,540 5,133,540 5,133,540 5,133,540 40,218 5,573,540 8,653,189 233,018 (570,971) 13,135,936 - 465,826 1,225,826 2,345 4,306,431 1,458,844 (568,626) 17,908,193 103 COUNTY OF WELD STATE OF COLORADO Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the fiscal year ended December 31, 2006 Motor Vehicle Health Fund Insurance Fund Insurance Fund Operating revenues: Contributions $ - $ 7,423,303 $ - Charges for services 5,780,099 - 255,589 Total operating revenues 5,780,099 7,423,303 255,589 Operating expenses: Personnel services - - - Supplies 1,992,588 42 1,696 Purchased services 1,961,504 17,511 17,342 Insurance and bonds - - 438,558 Depreciation 2,294,629 - - Other 60,709 - 451 Claims - 7,213,696 625,842 Total operating expenses 6,309,430 7,231,249 1,083,889 Operating income (loss) (529,331) 192,054 (828,300) Nonoperating revenues (expenses): Taxes - - 997,179 Miscellaneous 50 - 20,188 Interest income - - 58,819 State Grant 815,000 - - Gain (loss)on disposition of assets 233,424 - - Judgements and damages 80,655 - 27,516 Interest expense - - - Total nonoperating revenues (expenses) 1,129,129 - 1,103,702 Income (loss) before contributions and transfers 599,798 192,054 275,402 Capital contributions 23,934 - - Transfers in 1,300,000 - - Changes in net assets 1,923,732 192,054 275,402 Total net assets - beginning 11,773,689 2,662,674 190,424 Total net assets - ending $ 13,697,421 $2,854,728 $ 465,826 104 Phone Services Weld Finance Total Internal Fund Corporation Service Funds $ - $ - $ 7,423,303 1,054,968 - 7,090,656 1,054,968 - 14,513,959 130,218 - 130,218 50,110 1,646 2,046,082 655,969 80 2,652,406 - - 438,558 82,891 239,167 2,616,687 226,437 - 287,597 7,839,538 1,145,625 240,893 16,011,086 (90,657) (240,893) (1,497,127) - 997,179 742,293 762,531 1,574 60,393 - 815,000 - 233,424 - - 108,171 (322,293) (322,293) 421,574 2,654,405 (90,657) 180,681 1,157,278 23,934 - - 1,300,000 (90,657) 180,681 2,481,212 1,549,501 (749,307) 15,426,981 $ 1,458,844 $ (568,626) $ 17,908,193 105 COUNTY OF WELD STATE OF COLORADO Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended December 31,2006 Motor Vehicle Health Insurance Insurance Fund Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers $ 608,867 $ - $ 31,905 Cash flows from internal customers 4,972,920 7,528,012 254,648 Cash payments to external suppliers for goods and services (4,384,641) (7,063,827) (1,088,119) Cash payments to internal suppliers for goods and services (125,437) - (2,077) Cash payments to employees for services - (176,018) - Judgements/damages/losses 80,655 - 27,516 Miscellaneous revenues 50 -Net cash provided(used)by operating activities 1,152,414 288,167 (776,127) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes - - 997,179 Transfer from other County funds 1,300,000 - - Miscellaneous - -Net cash provided by noncapital financing activities 1,300,000 - 997.179 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (4,832,173) - - Principal paid on long-term debt - - - Interest paid - - - Proceeds from sale of capital assets 905,448 - - Grants 876,438 -Net cash provided(used)for capital and related financing activities (3,050,2871 - - CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments - - 79.008 Net Increase(decrease)in Cash and Cash Equivalents (597,873) 288,167 300,060 Cash and Cash Equivalents at Beginning of Year 688,156 3,237,936 1,105,822 Cash and Cash Equivalents at End of Year $ 90 78a $ 3 526 103 $ 1 405 887 Reconciliation of operating income to net cash provided(used)by operating activities: Operating income $ (529,331) $ 192,055 $ (828,300) Adjustments to reconcile operating income to net cash provided(used)by operating activities: Depreciation expense 2,294,629 Judgements/damages/losses 80,655 - 27,516 Miscellaneous revenue 50 Change in assets and liabilities Increase)decrease in accounts receivable (17,288) 4,845 (252,801) Increase)decrease in due from other funds (24,458) (842) Increase)decrease in inventories 22,899 Increase)decrease in other assets 1,851 (13,073) ncrease(decrease)in accounts payable (675,321) 2,291 19,958 ncrease(decrease)in accrued liabilities 20,509 ncrease(decrease)in other liabilities (1,272) ncrease(decrease)in deferred revenue - 88,976 250,906 Total adjustments 1,681,745 96.112 52,173 Net cash provided by operating activities $ 1 152 41‘t $ 288 167 $ (776 1271 Noncash investing,capital,and financing activities: Contributions of capital assets from(to)government $ 35,680 Capital asset trade-ins 106 Phone Service Weld Finance Total Internal Fund Corp Service Funds $ 105,252 $ - $ 746,024 948,288 13,703,868 (611,411) (1,726) (13,149,724) (132,270) - (259,784) (123,306) - (299,324) 108,171 50 186,553 (1,726) 849,281 997,179 (170,442) - 1,129,558 420,000 420.000 (170.442) 420.000 2.546.737 (180,681) - (5,012,854) (418,354) (418,354) (322,293) (322,293) 905,448 876,438 (180,681) (740.647) (3,971,615) - 323.866 402,874 (164,570) 1,493 (172,723) 1,406,426 852 6.439.192 $ 1.241 856 $ 2 34:1 $ 6 266 469 $ 79,785 $ (240,893) $ (1,326,684) 82,891 239,167 2,616,687 108,171 50 (2,771) (268,015) 949 (24,351) 22,899 (11.222) 20,228 (632,844) 2,190 22,699 3,281 2,009 339.882 106.768 239.167 2,175,965 $ 186 553 $ (1 7261 $ 849.281 35,680 107 COUNTY OF WELD STATE OF COLORADO Combining Statement of Changes in Assets and Liabilities Fiduciary Funds For the fiscal year ended December 31, 2006 Balance Balance 1/1/2006 Additions Deductions 12/31/2006 GENERAL AGENCY FUND Assets: Cash and short-term investments $ 5,064,663 $ 4,046,292 $ 4,980,728 $ 4,130,227 Total Assets $ 5,064,663 $ 4,046,292 $ 4,980,728 $ 4,130,227 Liabilities: Accounts payable $ 186,326 $ 442,624 $ 628,950 $ - Due to other governments 4,878,337 4,134,952 4,883,062 4,130,227 Total Liabilities $ 5,064,663 $ 4,577,576 $ 5,512,012 $ 4,130,227 PAYROLL AGENCY FUND Assets: Cash and short-term investments $ 82,863 $ 16,723,804 $ 16,587,539 $ 219,128 Accounts receivable 44 517 561 - Total Assets $ 82,907 $ 16,724,321 $ 16,588,100 $ 219,128 Liabilities: Accounts payable $ 82,907 $ 17,946,598 $ 17,810,377 219,128 Total Liabilities $ 82,907 $ 17,946,598 $ 17,810,377 $ 219,128 EMPLOYEE FLEXIBLE SPENDING Assets: Cash and short-term investments $ 20,091 $ 483,925 $ 479,638 $ 24,378 Accounts receivable - - - - Total Assets $ 20,091 $ 483,925 $ 479,638 $ 24,378 Liabilities: Accounts payable $ 20,091 $ 24,649 $ 20,362 24,378 Total Liabilities $ 20,091 $ 24,649 $ 20,362 $ 24,378 TOTAL -ALL AGENCY FUNDS Assets: Cash and short-term investments $ 5,167,617 $ 21,254,021 $ 22,047,905 $ 4,373,733 Accounts receivable 44 517 561 0 Total Assets $ 5,167,661 $ 21,254,538 $ 22,048,466 $ 4,373,733 Liabilities: Accounts payable $ 289,324 $ 18,413,871 $ 18,459,689 $ 243,506 Due to other governments 4,878,337 4,134,952 $ 4,883,062 4,130,227 Total Liabilities $ 5,167,661 $ 22,548,823 $ 23,342,751 $ 4,373,733 108 COUNTY OF WELD STATE OF COLORADO Paramedic Services Fund Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual For the fiscal year ended December 31, 2006 Budgeted Original Final Actual Variance Operating Revenues: Rescue unit fees $ 6,215,459 $ 7,555,459 $ 7,696,992 $ 141,533 Total Operating Revenues 6,215,459 7,555,459 7,696,992 141,533 Operating Expenses: Bad debt expense 1,900,000 2,600,000 2,526,967 73,033 Personnel services 3,288,900 3,498,900 3,556,083 (57,183) Supplies 250,000 330,000 269,234 60,766 Purchased services 454,748 654,748 633,776 20,972 Depreciation 143,000 173,000 185,558 (12,558) Other 94,000 114,000 115,228 (1,228) Total Operating Expenses 6,130,648 7,370,648 7,286,846 83,802 Operating Income (Loss) 84,811 184,811 410,146 225,335 Nonoperating Revenues: State grants 79,189 79,189 86,922 7,733 Fees - - 9,169 9,169 Gain (loss)on disposition of assets - (20,000) 4,687 24,687 Total Nonoperating Revenues 79,189 59,189 100,778 41,589 Income(loss) before contributions and transfers 164,000 244,000 510,924 266,924 Capital contributions - - 11,746 11,746 Net Income (Loss) 164,000 244,000 522,670 278,670 Net Assets at Beginning of Year 2,125,890 2,125,890 2,125,890 - Net Assets at end of Year $ 2,289,890 $ 2,369,890 $ 2,648,560 $ 278,670 109 COUNTY OF WELD STATE OF COLORADO Motor Vehicle Fund Schedule of Revenues, Expenses and Changes in Net Assets- Budget and Actual For the fiscal year ended December 31, 2006 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 3,516,709 $ 4,387,709 $ 3,485,470 $ (902,239) Miscellaneous 2,200,000 2,200,000 2,294,629 94,629 Total Operating Revenues 5,716,709 6,587,709 5,780,099 (807,610) Operating Expenses: Supplies 1,440,000 1,990,000 1,992,588 (2,588) Purchased services 1,991,300 1,991,300 1,961,504 29,796 Depreciation 2,200,000 2,200,000 2,294,629 (94,629) Other 60,709 60,709 60,709 - Total Operating Expenses 5,692,009 6,242,009 6,309,430 (67,421) Operating income (loss) 24,700 345,700 (529,331) (875,031) Nonoperating Revenues (Expenses): Miscellaneous - - 50 50 State Grant - 815,000 815,000 - Gain (loss)on disposition of assets 345,300 109,300 233,424 124,124 Judgements and damages - - 80,655 80,655 Total Nonoperating Revenues(Expenses) 345,300 924,300 1,129,129 204,829 Income(Loss) before contributions and transfers 370,000 1,270,000 599,798 (670,202) Capital contributions - - 23,934 23,934 Transfers in - (1,300,000) 1,300,000 2,600,000 Net Income (Loss) 370,000 (30,000) 1,923,732 1,953,732 Net Assets at Beginning of Year 11,773,689 11,773,689 11,773,689 - Net Assets at End of Year $ 12,143,689 $ 11,743,689 $ 13,697,421 $ 1,953,732 110 COUNTY OF WELD STATE OF COLORADO Health Insurance Fund Schedule of Revenues, Expenses and Changes in Net Assets- Budget and Actual For the fiscal year ended December 31, 2006 Budgeted Original Final Actual Variance Operating Revenues: Contributions $ 8,279,724 $ 8,279,724 $ 7,423,303 $ (856,421) Operating Expenses: Supplies - - 42 (42) Purchased services 27,000 27,000 17,511 9,489 Insurance and bonds 1,200,000 1,200,000 - 1,200,000 Claims 7,052,724 8,207,560 7,213,696 993,864 Total Operating Expenses 8,279,724 9,434,560 7,231,249 2,203,311 Operating Income (Loss) - (1,154,836) 192,054 1,346,890 Net Assets at Beginning of Year 2,662,674 2,662,674 2,662,674 - Net Assets at End of Year $ 2,662,674 $ 1,507,838 $ 2,854,728 $ 1,346,890 111 COUNTY OF WELD STATE OF COLORADO Insurance Fund Schedule of Revenues, Expenses and Changes in Net Assets- Budget and Actual For the fiscal year ended December 31, 2006 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 231,800 $ 231,800 $ 255,589 $ 23,789 Operating Expenses: Supplies 700 700 1,696 (996) Purchased services 27,600 27,600 17,342 10,258 Insurance and bonds 390,000 390,000 438,558 (48,558) Other 500 500 451 49 Claims 938,000 938,000 625,842 312,158 Total Operating Expenses 1,356,800 1,356,800 1,083,889 272,911 Operating Income (Loss) (1,125,000) (1,125,000) (828,300) 296,700 Nonoperating Revenues (Expenses): Taxes 1,000,000 1,000,000 995,967 (4,033) Penalties & interest - - 1,212 1,212 Interest income 25,000 25,000 58,819 33,819 Other - - 20,188 20,188 Judgments and damages 100,000 100,000 27,516 (72,484) Total Nonoperating Revenues (Expenses) 1,125,000 1,125,000 1,103,702 (21,298) Net Income (Loss) - - 275,402 275,402 Net Assets at Beginning of Year 190,424 190,424 190,424 - Net Assets at End of Year $ 190,424 $ 190,424 $ 465,826 $ 275,402 112 COUNTY OF WELD STATE OF COLORADO Phone Service Fund Schedule of Revenues, Expenses and Changes in Net Assets- Budget and Actual For the fiscal year ended December 31, 2006 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 880,000 $ 1,050,000 $ 1,054,968 $ 4,968 Operating Expenses: Personnel services 122,994 132,994 130,218 2,776 Supplies 14,500 49,500 50,110 (610) Purchased services 626,291 706,291 655,969 50,322 Depreciation 60,220 85,220 82,891 2,329 Other 55,995 230,995 226,437 4,558 Total Operating Expenses 880,000 1,205,000 1,145,625 59,375 Operating Income (Loss) - (155,000) (90,657) 64,343 Capital contributions and transfers Net Income (Loss) - (155,000) (90,657) 64,343 Net Assets at Beginning of Year 1,549,501 1,549,501 1,549,501 - Net Assets at End of Year $ 1,549,501 $ 1,394,501 $ 1,458,844 $ 64,343 113 COUNTY OF WELD STATE OF COLORADO Weld Finance Corporation Schedule of Revenues, Expenses and Changes in Net Assets- Budget and Actual For the fiscal year ended December 31, 2006 Budgeted Original Final Actual Variance Operating Revenues: Operating Expenses: Supplies - - 1,646 (1,646) Purchased services - - 80 (80) Depreciation 420,000 420,000 239,167 180,833 Total Operating Expenses 420,000 420,000 240,893 179,107 Operating Income (Loss) (420,000) (420,000) (240,893) 179,107 Nonoperating Revenues (Expenses): Miscellaneous 742,293 742,293 742,293 - Interest income - - 1,574 1,574 Interest expense (322,293) (322,293) (322,293) - Total Nonoperating Revenues(Expenses) 420,000 420,000 421,574 1,574 Net Income (Loss) - - 180,681 180,681 Net Assets at Beginning of Year (749,307) (749,307) (749,307) - Net Assets at End of Year $ (749,307) $ (749,307) $ (568,626) $ 180,681 114 STATISTICAL 2` AlPh Y SECTION '01/ritl4 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 116 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 121 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 125 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. Demogranphic and Economic Information 128 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 130 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. Sources: Unless otherwise noted,the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 115 COUNTY OF WELD STATE OF COLORADO Net Assets by Component Last Five Years (accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 2006 Governmental activities Invested in capital assets,net of related debt $ 253,141,316 $ 247,764,877 $ 238,640,911 $ 231,271,356 $ 233,626,280 Restricted for Programs 3,307,949 3,169,309 4,199,374 4,695,690 3,953,450 Emergencies 3,025,505 3,025,505 3,500,000 4,000,000 4,000,000 Claims 1,663,948 1,748,948 1,748,949 1,748,950 1,748,951 Unrestricted 27,713,273 26,511,213 30.759,296 39.782.093 48.545,826 Total governmental activities net assets $ 288 851 991 $ 282 219 857 $ 778 848 530 $ 281 498.084 $ 291 874.507 Business-type activities Invested in capital assets,net of related debt $ 941,049 $ 834,285 $ 864,425 $ 809,643 $ 852,705 Unrestricted (86,086) (266,7361 (4.761) 1,508,322 2,118,077 Total business-type activities net assets $ 854 963 $ 567 549 $ 859 664 $ 2 317 965 R 7 970 782 Primary government Invested in capital assets,net of related debt $ 254,082,365 $ 248,599,162 $ 239,505,336 $ 232,080,999 $ 234,478,985 Restricted 7,997,402 7,943,762 9,448,323 10,444,640 9,702,401 Unrestricted 27,627.187 26.244.477 30,754,535 41,290,415 50,663.903 Total primary government net assets $ 289 706 954 $ 282 787 401, $ 279 708.194 $ 283 816 054 $ 294 845 289 Note: The County implemented GASB Statement No.34 in fiscal year 2002,therefore,only five years of government-wide financial data is presented. 116 COUNTY OF WELD STATE OF COLORADO Changes in Net Assets Last Five Years (accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 2006 Expenses Governmental activities: General government $ 19,978,184 $ 23,618,753 $ 21,174,906 $ 23,047,725 $ 26,641,373 Public safety 24,079,553 27,827,685 28,425,957 30,449,441 32,562,998 Streets and highways 34,283,421 33,353,129 32,688,807 36,919,372 37,068,628 Health and welfare 21,721,740 21,404,255 23,538,421 24,843,147 26,179,807 Culture and recreation 1,036,099 776,322 1,005,697 771,295 1,549,379 Economic assistance 11,079,949 11,411,322 12,646,785 13,736,745 11,747,943 Interest on long-term debt 406,155 377,233 358,054 340,411 322,293 Total governmental activities expenses 112,585.101 118,768.699 119,838.627 130,108,136 136,072,421 Business-type activities: Paramedic service 6,743,936 8,800 646 9.738.148 6.366,088 7.156.700 Total primary government expenses $ 119 329 037 $ 127 569'345 $ 129 576 77$ $ 136 474 224 $ 143.229.121 Program Revenues Governmental activities: Charges for services: General government $ 9,425,679 $ 8,677,015 $ 8,086,983 $ 9,792,423 $ 12,265,623 Public Safety 3,894,565 5,085,767 7,609,527 5,430,422 6,378,749 Streets and highways 2,021,319 2,279,939 1,157,634 3,433,713 4,023,310 Health and welfare 13,664,895 11,486,561 12,699,858 13,664,206 14,949,936 Culture and recreation 266,900 1,375 309,948 333,293 345,990 Economic assistance 922,549 1,576,106 862,223 1,156,012 1,186,129 Operating grants and contributions 26,156,456 25,963,243 27,124,685 27,885,047 30,045,943 Capital grants and contributions - - - - - Total governmental activities program revenues 56,352,363 55,070,006 57,850,858 61,695,116 69,195,680 Business-type activities: Paramedic service 6,815,683 8.518.289 10.035,874 7,829,714 7,710,848 Total primary government revenues 63.168.046 63.588.295 67.886,732 69,524,830 76,906.528 Net(Expenses)/Revenue Governmental activities (56,232,738) (63,698,693) (61,987,769) (68,413,020) (66,876,741) Business-type activities 71,747 (282,357) 297,726 1,458,301 652,816 Total primary government net $ (56 180 991) $ (69981 0501 $ (61 690 041) $ (66 954 719) $ (66 279 925) (CONTINUED) 117 COUNTY OF WELD STATE OF COLORADO Changes in Net Assets Last Five Years (accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 2006 General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Property taxes $ 45,233,546 $ 47,532,602 $ 50,785,919 $ 56,382,533 $ 62,124,792 Specific Ownership 5,467,148 5,540,872 6,795,897 6,627,991 6,614,819 Other 2,376,581 2,492,418 3,333,336 3,733,025 5,266,786 Unrestricted investment earnings 2,052,594 1,563,120 1,644,979 2,679,442 4,539,172 Donated capital assets 0 0 0 355,784 7,602 Gain on sale of capital assets 10,030 (94,544) (2,358,185) - - Transfers - - - - (1,300,000) Total governmental activities 55,139,899 57,034,468 60,201,946 69,778,775 77,253,171 Business-type activities: Paramedic service - (5,057) (5,611) - - Total primary government $ 55-139 89Q R 57 029 411 $ 60 196 335 $ 6%778 775 $ 77 253 171 • Change in Net Assets Governmental activities $ (1,092,839) $ (6,664,225) $ (1,785,823) $ 1,365,755 $ 10,376,430 Business-type activities 71,747 (287,414) 292,115 1,458,301 652,816 Total primary government $ (1 021 092) $ (6 951 6391 $ (1 491708) $ 2 824 05Q $ 11 029 246 118 COUNTY OF WELD STATE OF COLORADO Fund Balances of Governmental Funds Last Five Years (modified accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 2006 General Fund Reserved $ 3,249,297 $ 1,342,369 $ 1,516,298 $ 1,486,188 $ 946,073 Unreserved 2,921,157 3,727,307 6.699.941 7,648,920 10,630.592 Total general fund $ 6 170 454 $ 5 069.676 $ 8 216 239 $ 9 135 108 $ 11.576 665 All other Governmental Funds Reserved $ 6,984,908 $ 2,666,118 $ 4,139,435 $ 8,834,511 $ 15,019,004 Unreserved, reported in: Special revenue funds 19,512,384 22,023,076 25,360,820 26,155,751 29,281,236 Capital projects funds 294,482 2,830,614 697,779 3,511,495 0 Debt service funds - - - - - Total for all governmental funds $ 32 962 2?8 $ 32.589.484 $ 38 414 27a S 47 636 865 $ 55 876.905 119 COUNTY OF WELD STATE OF COLORADO Changes in Fund Balances,Governmental Funds Last Five Years (modified accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 2006 Revenues Taxes $ 50,771,861 $ 53,080,974 $ 57,698,294 $ 63,261,095 $ 69,178,181 Licenses and permits 2,205,420 1,760,546 1,834,849 2,119,419 3,188,354 Intergovernmental 40,511,590 38,299,161 40,652,682 41,110,202 44,982,577 Fines and forfeitures 159,246 75,488 69,538 204,530 135,908 Charges for Services 5,746,678 6,887,469 7,345,819 8,618,819 8,232,213 Miscellaneous 5,536,066 4,739,386 5,329,931 7,582,510 13,377,598 Fees 6,638,831 7,387,204 7.454,831 8.175,907 8,602,079 Total Revenues 111,569,692 112,230,228 120,385,944 131.072,482 147,696,910 Expenditures Current: General government 19,100,208 21,910,296 20,566,315 22,384,671 25,366,204 Public Safety 23,435,572 27,212,371 27,475,345 29,834,629 31,881,427 Public Works 23,465,325 21,407,821 22,734,695 25,490,667 26,315,156 Public health and welfare 21,327,335 20,896,282 23,046,109 24,284,817 25,993,962 Culture and recreation 1,046,374 764,449 1,007,208 775,903 1,550,929 Economic assistance 10,892,932 11,365,585 12,450,198 13,572,861 11,746,242 Capital outlay 9,590,948 8,668,934 6,923,230 5,165,931 14,980,649 Debt service Interest 406,155 377,233 358,054 340,411 322,293 Principal - - - - - Total Expenditures 109,264,849 112,602.971 114.561,154 121,849,890 138,156.862 Excess of revenues over(under)expenditures 2,304.843 (372.743) 5.824,790 9,222,592 9,540,048 Other Financing Sources(Uses) Transfers-in 5,144,682 2,482,745 4,299,153 7,436,144 11,309,847 Transfers-out 5,144,682 2,482,745 4,299,153 7,436,144 12,609,847 Total Other Financing Sources(Uses) - - - - (1,300,000) Net changes in Fund Balance $ 2 104 848 $ (372 743) $ 5 824.79Q $ 9222 592 $ 8 240 048 Debt Service as a percentage of noncapital expenditures 0.41% 0.36% 0.33% 0.29% 0.26% 120 0 W a cow o J o o a a o 0 0 0 0 0 0 t 1 N- 10 at I0 O N co co N O O W C N O) CO n CON 1- MO N O Q31 ; 8U N M Rr M 6 (D f0 6N a a U 0 0 0 cO CO O (O a N- 0 N v a a am m N N N- in o c-- 'm o o o o o In o a, 00 0 Ct N N N N N O O O r C X NN N NN N N N r N O I- F N Cr r r- r n 0) 0 a M p) CO CO CO M (0 I- I- 0 a O a Cr), CO Hcomowoo F 01 o r N co- T o O §+ N Cr) V 0) CO M M CO I"-- M O J F j O (O M 10 a 10 a N M O E V °) (p t• N V O Ni u) (O u) r N ._ a O M O r o (O N O 10 r o p a co f� N O N O N Vl N O W m r W Qi al ^ ^ ^ co O N V) H N _O • 0 d o 0 O o 0 0 0 0 0 o d 2 CD r 00 r 0 a 0 N- c n ; O O N r N O (O M F N N (O N M M co" N arc [ E % O ' ID co oO O N N Cr y 0 a (O O (O O r a a M O ac L- F y 6 r In N Ni r O O r M 0 1a N 10 (O N N OD o N O y r M a 10 co_ I"e. N a a a (O N T O CI)N r r r r N N N N M a °M O p C 0 0 0 N 0 0 0 0 0 0 0 0 0 0 N n o. a O co co co L0 0 0 0 0 0 G O d N00LOLO �O j d c 'n N N N N M O M I� R M O N H t0 co o a O r n o 0 m L N M (O I,- M 1-- r N N a I-- an t N O a O O O M a N M a to Q Or- 00000301000 E c 2 Nx N N N N a M M V ~_ 0 0 0 0 0 0 0 0 0 0 0 N 1- O (D N N a (O Cr O CO la a a a M N M CO N N To O 0 07 a ci (r O O 10 co co co M C Q co ca a u) N N N CO a O 1-- r h N w O_' > i M (0 M M M O a O O (O r O j co M a N M N a N (O I- M 0) 0 c 0 0 M M N M (O (O l0 O N r A LL 0 u Y r r m o OU ¢ c an 0 0 0 0 0 0 0 0 0 0 0 m o O N ~ 8 r a N H N N F a 1- (O a O Ni Z W ca t-N p c co' r 0 a N M l0 O l0 a to OF E J C O O0) 0 0 ,- ONO(n0 .r- CO CO N. a U H. w Z N M u) (O I- O R N O O O O W N d N a a d C 0 0 0 0 0 0 0 0 0 0 N d O y 4) O to to O_ O 0 M O_ MN C (0 M N O M N N N co = N J a N- on (O N r n 0 O O O N O a s I- O O a s (0 u) h a 0C a (O O a M O M N N N O N N Q a a in (O 10 N N LO N- r N N y r L W 0 0 0 0 0 0 0 0 0 0 C o O (0 a c0 ^ 0 a (D N (0 Q TO •E N N I-- N CO (O N O 10 (O d n 10 0 o O N n r 0)r 00)1 n (NV N G a 0 n d r of O N (O ai - 6i0 V m To a to r (O In In In 10 In O to c A a O N a N. In N W O C n n a 10 O N co a co CD 0 0 N N I- O M a O (0 n N O (p E p CO r O N O a M 10 CO CO a C o a (o o 6 e (oto' h co' of w M In O - a r N a o co o - _O U N N N M M M a a 10 10 N C N N d c_ O O O O 0 O O O O O H V C O oO (O N. (O In O (O r 0 CO p I� IO a O N N IO r 0 _ C W C e Z. CC a N N LO N a u) 0 N (D a 1n CO j ` N y a N. M 10 n n n h a N O CO- ' O 10 O a (O O N O N T N d M O a (O coM O In I- In 0 L CC as au) (Dr r0CDC) a m W i c o m 0 0 0 O a O N O V0) O a a d c N 0 a O (O C) 10 O M o r 0 C c 0 NI a O n (O (a0 N M (0 O (0 0 N y 70 no J N 0) (O N- 0) u) CO 0 in p m E E > N CO COO V (OO a0 or O r) O IC 0 E o O H U - 0 oO 0 o N M a 10 (O yj m m m o 0 0 0 0 0 0 ` m 0 0) 0) 0) 0000000 J ) N N N N N N N 0 O (n Z 121 COUNTY OF WELD STATE OF COLORADO Property Tax Rates Direct and Overlapping Governments Last Ten Years Overlapping Rates Levy Direct City of School Aims Weld Year Coin Greeley District 6 College Library 1997 22.040 11.274 53.725 6.250 1.500 1998 22.040 11.274 49.617 6.320 1.409 1999 22.040 11.274 49.099 6.250 1.449 2000 22.038 10.635 47.315 6.343 3.249 2001 22.038 11.274 46.974 6.351 3.249 2002 20.559 11.274 50.320 6.620 3.249 2003 20.056 11.274 47.981 6.316 3.249 2004 21.474 11.274 46.453 6.322 3.249 2005 19.957 11.274 44.711 6.328 3.249 2006 17.900 11.274 41.129 6.357 3.281 The basis for the property tax rates is per$1,000 assessed valuation. Source: Office of the Weld County Assessor. 122 COUNTY OF WELD STATE OF COLORADO Principal Property Taxpayers 2006 1997 Percent Percent Of Total County Of Total County Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Rank Value Value Rank Value Kerr-McGee Rocky Mountain Corporation $ 563,270,950 1 13.40% Noble Energy $ 545,469,930 2 12.98% Encana Oil&Gas(USA)Inc 168,944,360 3 4.02% Petroleum Development Corp 105,223,960 4 2.50% Public Service Company of Colorado(Xcel) 96,337,200 5 2.29% $ 47,437,800 4 3.21% Rocky Mountain Enery Center 84,814,300 6 2.02% Petro-Canada Resources(USA)Inc 74,504,610 7 1.77% Merit Energy 66,341,460 8 1.58% Duke Energy Field Services Inc 42,713,610 9 1.02% Eastman Kodak Company 40,964,880 10 0.97% 71,292,840 3 4.82% Patina Oil&Gas Corporation 97,802,800 1 6.61% HS Resources Inc 78,874,720 2 5.33% Amoco Production Company 35,867,890 5 2.42% Thermo Cogeneration Partnership 33,657,400 6 2.27% Duke Energy Field Services Inc 18,203,020 7 1.23% US West Communications Incorporated 17,357,600 8 1.17% Prima Oil&Gas Company 13,056,330 9 0.88% North American Resources Company 10,346,500 10 0.70% $ 1,788,585,260 42.55% $ 423,896,900 28.64% Source: Weld County Assessor 123 COUNTY OF WELD STATE OF COLORADO Property Tax Levies and Collections Last Ten Years Collected within the Taxes Levied Ficsal Year of the Levy Collections Total Collections to Date Levy Coiled for the Tax Percent in Subsequent Tax Percent Year Year Fiscal Year(1) Amount(2) of Levy Years 3 Amount(3) of Levy 1996 1997 29,246,805 28,843,296 98.620% 684 28,843,980 98.623% 1997 1998 32,543,342 32,222,578 99.014% 144 32,222,722 99.015% 1998 1999 34,162,938 34,094,225 99.799% 16,002 34,110,227 99.846% 1999 2000 35,976,391 35,788,843 99.479% 92,119 35,880,962 99.735% 2000 2001 38,774,962 38,275,747 98.713% 53,691 38,329,438 98.851% 2001 2002 45,619,589 45,566,346 99.883% 53,243 45,619,589 100.000% 2002 2003 48,640,425 48,410,396 99.527% 98,911 48,509,307 99.730% 2003 2004 53,350,030 53,094,454 99.521% (213,680) 52,880,774 99.120% 2004 2005 59,680,948 59,395,927 99.522% (76,449) 59,319,478 99.394% 2005 2006 64,636,463 64,580,198 99.913% - 64,580,198 99.913% Source: 1)Final Budget 2)YTD Treasurer's Tax Distribution 3)YTD Treasurer's Tax Distribution 2001 forward. Negative values reflect subsequent rebates and adjustments. 124 COUNTY OF WELD STATE OF COLORADO Direct and Overlapping Governmental Activities Debt December 31, 2006 Net General Obligation Percentage Amount Bonded Debt Applicable to Applicable to Jurisdiction Outstanding Government(11 Government Cities&Towns $ 60,594,442 84.49% $ 51,195,938 Schools 797,383,560 42.16% 336,198,970 Special Districts 123,734,786 86.45% 106,971,782 Total Overlapping $ 981 712 788 $ 494 366 690 Source: Debt outstanding provided by each governmental unit. 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. 125 0 a 0 W o N W 01 a r O N Oi a N Y N W O a N o W 0 0 OIW ar N P a a N \ R. O O° i O O Q N N O N O N CO 0 r- n^W- O y Q 0 am m n c°- i a 0 r - n No N CO 0 O N N N ,y N W a 0 O O O O N N ' o ryC co W O ❑ C O N b O OJ O 2 � ELL' N 10 p W re 2 m g c >_p o W LL J .. ) m C U N s LL O LL 3 F ,:q,. LL z O C `2 Wz 11 m J 15,N ~ o Q ❑_ _ ❑ N W Q j N N O U N To J o W O UC O yq� O p O O m T C U q N J N N co O C E m e vE Eaq a ry O 2 J m U a , 0 7 m 2 d 0Wi o ff w CO m Q Q o U N ❑ ¢ a n a ml N a £ m Orn o p —u'a n m p o - `o N 8 Q a 'a `o C a m o m a n. c _ •2 W cri -o ,a d aa, c oo Eg CO 1 o 2 m > N ❑ o a' E _ oo d 8 N j c ,9 A .. Q O rn vfi N O M O O W D a a E r _ r la m c < ❑ < J o r m o K O p o o a E E 1m o E m n p m 0 a O c o O ill W E o a 2, C E t p a O o E U3 v mn N m a a y v c c m a C 2 '.8 D 0 o E, co rn C o m E u C O m a m m p E n E c a c a. E m m 0. m m w J 'a a m o v o m o w q ❑ r r Z ❑ . 126 COUNTY OF WELD STATE OF COLORADO Private Purpose Revenue Bonds December 31,2006 INDUSTRIAL REVENUE BONDS: DEBT REVENUE BOND TYPE OF ISSUE OUTSTANDING OUSTANDING ISSUER FACILITY AMOUNT DATE BEGINNING OF YEAR ISSUED RETIRED END OF YEAR Waste Service Corporation Landfill $860,000 2/91 $375,000 $0 $60,000 $315,000 Waste Service Corporation Landfill 2,500,000 2/91 1,235,000 0 165,000 1,070,000 MAK Group,LLC Manufacturing 1,345,000 6/01 1,345,000 0 0 1,345,000 Centennial Area Office Health Education Central 388,000 5/99 313,198 0 14,698 298,500 GSSLB Association Nursing Home Nursing Home 2,020,000 10/98 1,530,000 0 105,000 1,425,000 Greeley Center for Therapeutic 1,650,000 9/03 1,525,454 0 59,333 1,466,121 Independence,Inc Center BSC Hudson Manufacturing 5,715,000 10/05 5.715,000 0 0 5.715.000 TOTAL PRIVATE PURPOSE REVENUE BONDS $12 098 652 $Q $404 031 $11 634 621 127 COUNTY OF WELD STATE OF COLORADO Demographic and Economic Statistics Last Ten Years Total Personal Income Per Unemployment Year Population ($ billion) Capita Income Rate 1997 154,930 3.12 20,038 3.80% 1998 166,547 3.52 21,144 3.90% 1999 174,342 3.89 22,301 3.70% 2000 180,936 4.22 23,016 2.70% 2001 193,929 4.36 22,469 4.00% 2002 202,329 5.02 24,571 6.10% 2003 207,120 5.14 24,279 6.70% 2004 217,652 5.38 25,274 5.40% 2005 221,957 5.79 25,968 5.00% 2006 229,377 5.84 25,495 3.80% Source: Upstate Colorado in cooperation with University of Northern Colorado and the State of Colorado demographer. 128 COUNTY OF WELD STATE OF COLORADO Principal Employers Current Year and Ten Years Ago 2006 1996 Percent Percent Of Total County Of Total County Employees Rank Employment Employees Rank Employment Northern Colorado Medical Center 2700 1 2.63% 1357 5 1.69% Swift&Company 2300 2 2.24% 4331 1 5.39% State of Colorado(includes UNC) 2066 3 2.01% 1957 3 2.44% School District 6 2052 4 2.00% 1675 4 2.09% Eastman Kodak Company 1650 5 1.61% 2443 2 3.04% State Farm Insurance Companies 1445 6 1.41% 764 10 0.95% Weld County Government 1400 7 1.36% 1000 8 1.25% City of Greeley 942 8 0.92% 844 9 1.05% Startek USA 906 9 0.88% Wal-mart Super Center 856 10 0.83% Aims Community College 1167 7 1.45% Hewlett Packard 1220 6 1.52% Total Principal Employers 16,317 15.89% 16,758 20.87% Other Employers 86,395 84.11% 63,542 79.13% Total County Employment 102,712 100.00% 80,300 100.00% Source: Upstate Colorado Total Employment from Colorado Department of Labor 129 co co col NN ' ' r r N ) N N � � ` � ( NNr � ~ r 0 O C E 23 \ j \ ,N. , ,N , , F.O)\ { ) § § 2 § ` 7 \o \ \ 0 0 / j 2 , , , , co 0) r \ } Lai 2 Ti. _ E ` > \ LL ) / ) } , I- 0 ® { ) 2 , , , , Cr) 0 \ § R ( ) : 2 2 $ CO Z. I - o ) n , r , § ! Oc To m \ ) 5 , � � Cr)el NN ` ) k \ 2 2 2 CO 2 .- r ® 0) ( C j ( § 2 { - Co k | 2 ) B ( ) B k I ) CN § ) � ) 4 ± > ; 0 ) ! § � ! ) \ \ O \ k 05 / io � § ; 3 ( _ ; _ 3 ) « m ® { / , Ca _ ` § _ _ - _ - - - rm < Z5 ) * 22 / 87 t ] 0. ] # EA { 130 COUNTY OF WELD STATE OF COLORADO Operating Indicators by Function/Program Last Seven Years Fiscal Year 2000 2001 2002 2003 2004 2O05 2006 Function/Program General government: Motor vehicle registration 478,727 294,019 305,879 433,188 439,146 462,877 466,777 Registered voters(1) 80,041 79,289 85,161 76,245 98,692 99,711 100,924 Number of votes cast(2) 65,317 22,422 56,730 32,476 89,099 46,327 68,871 Percent of registered voters voting 81.6% 28.3% 66.6% 42.6% 90.3% 46.5% 68.2% Public safety: Adult arrests 1,457 1,520 1,435 2,738 1,387 1,543 1,574 Juvenile arrests 250 220 337 491 218 206 215 Average secure jail population 303 298 330 371 402 455 579 E911 calls 55,807 52,000 84,420 72,396 75,276 79,425 92,045 Building Permits 2,190 2,180 2,082 1,941 2,012 2,082 1,972 Valuation(thousands) $143,856 $148,426 $125,336 $201,442 $132,178 $104,225 $399,473 Public works: Miles of road graveled 427 440 440 440 401 401 160 Snow removal lane miles 1370 1390 1390 1,406 33,710 78,435 125,225 Grading lane miles 123,718 131,171 131,171 126,000 175,910 165,681 164,906 Miles of Upgrade-Aggregate Surfaced Roads 26 5 5 8 10 0 10 Culverts(new and repaired)15"and larger 204 240 240 240 217 217 242 Tons of asphalt laid 102,221 80,055 80,055 101,243 95,634 95,634 70,421 Tons of gravel crushed 490,000 500,000 500,000 510,000 487,477 487,477 408,409 Health and welfare: Social Services Caseload 9,900 9,900 9,900 9,900 12,000 14,000 14,500 Patient contacts 17,271 16,207 16,207 14,601 15,000 11,000 30,440 Immunizations 15,979 17,730 5,848 4,600 7,500 6,900 6,360 Culture and recreation: Visitors-Missile Park 700 700 695 558 575 575 586 County Fair Exhibitors -- 5,000 2,370 2,410 2,410 2,220 2,422 Economic assistance: Headstart clients 524 537 577 641 622 562 562 Migrant Headstart clients 250 99 200 146 175 266 266 Business-type activities: Paramedic Services Patients transported 6,973 6,687 7,027 7,060 7,331 7,284 8,375 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. 131 COUNTY OF WELD STATE OF COLORADO Capital Asset Statistics by Function/Program Last Seven Years Fiscal Year 2000 2001 2002 2003 2004 2005 2006 Function/Program General government: Building Square Footage 585,045 604,100 620,310 684,551 684,551 719,723 Courtrooms 9 9 9 9 10 12 18 Information Systems Connections 959 997 1,240 1,292 1,292 Public safety: Jail capacity(beds) 454 454 454 454 386 386 386 Patrol cars 35 36 44 43 42 46 55 Radios and cell phones 828 857 947 939 1,140 1,229 Public works: Miles of Roads Paved 665 665 670 679 671 681 675 Unpaved 2,490 2,484 2,457 2,438 2,425 2,394 2,387 Un-maintained 255 254 253 250 252 512 327 Grader sheds 18 18 18 18 18 18 18 Motor graders 27 27 30 29 30 30 30 Health and welfare: Altemative fuel vehicles 4 4 4 5 6 4 4 Economic assistance: Headstart sites 12 12 12 11 11 11 11 Business-type activities: Paramedic Services Ambulances 11 11 10 10 10 10 10 Source: Weld County Department records and Fixed Asset Inventory 132 COUNTY OF WELD STATE OF COLORADO Insurance in Force December 31,2006 Policy Policy Period Annual Name of Company Number Begins Expires Details of Coverage Liability Limits Premium Midwest Employers ECW005661 01/01/06 12/31/06 Excess Worker's Employer's Liability Casualty Company Compensation $1,000,000/Accident. Worker's Compensation Statutory Limits with County retaining first $450,000 each claim. $58,078 Lexington 7479205 01/01/06 12/31/06 Property damage, Property: $50,000,000/ (Colorado Counties automobile liabilities, occupancy/$500 deductible. Casualty&Property general liability,public All Liability: $250,000/person; Pool) officials. $600,000/claim. Excess Liability: (Federal and Out-of-State Only) $2,750,000/person Excess $250,000: $600,000/Claim. St.Paul Fire and Marine GP06301814 Excess Casualty and Excess$400,000 Insurance Company Boiler&Machinery Crime: $150,000/Loss (Colorado Counties $500 Deductible Casualty&Property Property Claim Pool) County retaining first $270,150 $125,000 each claim 133 ra :14 Wilk COLORADO 134 Single O Audit COLORADO MO/) � 0 , Oct � NC f ay §; ;; R§4 )}\ \ \ ;§ «; r�l: o ! ! ! 00 006/ ; : k & »: P § ( \ } 030 MN 00 0 0 \ i\ G)§ ( )] \ \ \ ®± ;° R/y } \ if / 2 a% ! MO< 0 ) \ } a 0 M<< ) 4 \ wN a / ! : E w UU \\ 1 \ \ f 9 �/ \ LL M FFW FOO : _ 0 Cd ! 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Crum = ////§ 1 /)/§ . 51 ii \ \ g.,-..g a / g;Q! \ \ 00 ° ` RR!/ ` RR/ BONDI & Co. wr 44 INVERNESS DRIVE EAST (303)7946826 Pt1ONE ENGLEWOOD,COLORADO 80112 CERTIFIED PUBLIC ACCOUNTANTS (800)250-9083 TOLL-FREE www.bondico.com MANAGEMENT CONSULTANTS (303)799-6926 FAX Board of County Commissioners Weld County Greeley, Colorado 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 We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Weld County, Colorado, as of and for the year ended December 31, 2006, and have issued our report thereon dated June 20, 2007. We did not audit the financial statements of the Weld County Housing Authority, which represents 37 percent, 36 percent, and 66 percent, respectively, of the assets, net assets and revenues of the discretely presented component units. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Weld County Housing Authority, is based 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered Weld County, Colorado's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Weld County, Colorado's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Weld County, Colorado's internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a significant deficiency. 140 . UN�Gk 111C'nil Affiliate Offices Worldwide Board of County Commissioners Weld County Greeley, Colorado A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects Weld County, Colorado's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of Weld County, Colorado's financial statements that is more than inconsequential will not be prevented or detected by Weld County, Colorado's internal control. We consider one deficiency described in the accompanying schedule of findings and questioned costs to be a significant deficiency in internal control over financial reporting. The significant deficiency is finding 06-03. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by Weld County, Colorado's internal control. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that the significant deficiency described above is not a material weakness. Compliance and Other Matters As part of obtaining reasonable assurance about whether Weld County, Colorado's financial statements are free of 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. Weld County, Colorado's responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit Weld County, Colorado's responses, and accordingly, we express no opinion on them. 141 Board of County Commissioners Weld County Greeley, Colorado This report is intended solely for the information and use of the County Commissioners, management, others within the County, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ea. ccc June 20, 2007 BONDI& Co. ac 142 `t..0 BONDI & Co. 44 INVERNESS DRIVE EAST (303)799-6826 PHONE ENGLEWOOD,COLORADO 80112 CERTIFIED PUBLIC ACCOUNTANTS (800)250-9083 'rota-FREE www.bondico.com MANAGEMENT CONSULTANTS (303)799-6926 FAX Board of County Commissioners Weld County Greeley, Colorado Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133 Compliance We have audited the compliance of Weld County, Colorado, with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A- 133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2006. Weld County, Colorado's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Weld County, Colorado's management. Our responsibility is to express an opinion on Weld County, Colorado's compliance based on our audit. 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 Weld County, Colorado'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. Our audit does not provide a legal determination of Weld County, Colorado's compliance with those requirements. 143 %NI Affiliate Offices Worldwide Board of County Commissioners Weld County Greeley, Colorado In our opinion, Weld County, Colorado, complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2006. Internal Control Over Compliance The management of Weld County, Colorado, is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Weld County, Colorado's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, 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 Weld County, Colorado's internal control over compliance. A control deficiency in Weld County, Colorado's internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects Weld County, Colorado's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by Weld County, Colorado's internal control. We consider three of the deficiencies described in the accompanying schedule of findings and questioned costs to be significant deficiencies in internal control over compliance. The significant deficiencies are findings 06-01, 06-02, and 06-04. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented of detected by Weld County, Colorado's internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. 144 Board of County Commissioners Weld County Greeley, Colorado This report is intended solely for the information and use of the County Commissioners, management, others within the County, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than those specified parties. 4,4 ea. cac June 20, 2007 BONDI & Co. ac 145 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2006 Section I - Summary of Auditors' Results Financial Statements Type of auditors' report issued: Unqualified Internal control over financial reporting: Material weakness(es) identified? yes 0 no Reportable condition(s) identified not considered to be material weaknesses? 0 yes no Noncompliance material to financial statements noted? yes 0 no Federal Awards Internal control over major programs: Material weakness(es) identified? yes 0 no Reportable condition(s) identified not considered to be material weaknesses? o yes no Type of auditors' report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .510(a)? yes no Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 10.551 Food Stamp Program 10.561 Food Stamp Administration 93.563 Child Support Enforcement 93.600 Head Start 93.575 Child Care and Development Block Grant 93.596 Child Care and Development Fund 93.658 Foster Care Dollar threshold used to distinguish between Type A and Type B programs: $1,191,717 Auditee qualified as low-risk auditee? yes 0 no 146 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section II -Financial Statement Findings There were no findings relating to the audit of the County's basic financial statements that are required to be reported under generally accepted government auditing standards. 147 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section III - Federal Award Findings and Questioned Costs 06-01 - CFDA No. 93.563 Child Support Enforcement IV-D Child Support Insurance Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: The State IV-D agency must attempt to secure medical support information and establish and enforce medical support obligations for all individuals eligible for services under 45 CFR Section 302.33. Specifically, the State IV-D agency must determine whether the custodial parent and child have satisfactory health insurance other than Medicaid. If not, the agency must petition the court or administrative authority to include medical support in the form of health insurance coverage in all new or modified orders for support. Condition and Context: From 30 selected samples tested, three cases did not have documentation to support insurance coverage of the child(ren). In all cases, insurance was ordered to be maintained for the child(ren); however, no steps were taken by the Department of Social Services to ensure compliance. Cause: There is a lack of required oversight of ordered insurance. Effect: The ordered insurance is for the protection of the child(ren). Recommendation: We recommend the Department of Social Services require additional oversight in order to ensure compliance with court ordered stipulations. 148 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section III - Federal Award Findings and Questioned Costs (Continued) 06-01 - CFDA No. 93.563 Child Support Enforcement IV-D (Continued) Questioned Costs: Cannot be determined. Management Response: The Department agrees with the recommendation that additional oversight is needed in order to ensure compliance with court-ordered medical support and documentation of insurance coverage. In 2007, we are adding additional staff to accomplish this task. We have hired a lead worker in child support to manage the task of reviewing all aspects of health insurance in relation to child support. As of this date, we have begun hiring and training some additional staff and have begun reviewing cases to ensure compliance with court-ordered medical, as well as sending notices to employers to enroll children in health care coverage when appropriate. In addition, we are updating our automated system with the health insurance information and notifying the custodial party of the health insurance coverage. By the end of 2007, we will have examined all cases and have procedures in place to review cases for enforcement of medical insurance compliance on a routine basis. 149 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section III - Federal Award Findings and Questioned Costs (Continued) 06-02 — CFDA No. 93.658 Foster Care — Title IV-E Foster Care Income Determination Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: A child must meet the eligibility requirements of the former Aid to Families with Dependent Children (AFDC) program (42 USC 672(a)). Eligibility ceases at the child's 18th birthday (45 CFR Section 233.90(b)(3)). To be eligible for the Foster Care Program, families must meet income standards set by the federal program. Condition and Context: When reviewing one file out of a sample of 25 participants, we found that the income verification section of the original determination was blank. Cause: There was a lack of oversight on the file that allowed an original determination to be processed without documenting the income verification in the file. Effect: Without documentation of income used to support eligibility, benefits could be paid to ineligible participants. Recommendation: We recommend the Department ensure all program participant income is validated with appropriate supporting documentation. Questioned Costs: Cannot be determined. 150 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section III - Federal Award Findings and Questioned Costs (Continued) 06-02 - CFDA No. 93.658 Foster Care - Title IV-E (Continued) Management Response: The current determination process has been revised to have the Eligibility Technician follow the Colorado Department of Human Services Title IV-E Eligibility Determination Handbook Section 2-9. The Handbook will walk the Technician through all the proper steps to determine eligibility and income criteria. The Technician is also instructed to impute the client's income if they are unable to verify money earned or the client is uncooperative. Once the SS-9 is completed by the Technician, it is forwarded to a Caseworker IV to verify that the form is correctly and completely filled out. CDHS State Auditors also periodically pull IV-E cases to check for accuracy. 151 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section III - Federal Award Findings and Questioned Costs (Continued) 06-03 - CFDA No. 10.561 Food Stamp Administration Food Stamp Reconciliations Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: Entities that use Electronic Benefits Transfer (EBT) must have systems in place to reconcile all of the funds entering into, exiting from, and remaining in the system each day with the organization's benefit account with Treasury and EBT contractor records. This includes a reconciliation of the organization's issuance files of postings to recipient accounts with the EBT contractor. Condition and Context: When reviewing 25 participants, we found the daily reconciliations required under EBT regulations are not being followed. Weekly reconciliations were prepared on the EBT Cards through September. Beginning in October 2006, the County came into compliance with the requirement to perform daily reconciliations. Cause: Due to staffing levels and case loads, the Department was not able to prepare a daily reconciliation. Effect: Without a daily reconciliation of EBT cards, there is increased potential for fraudulent activity between reconciliations. Recommendation: In order to ensure compliance with EBT Regulations, a daily reconciliation of EBT cards should take place. Questioned Costs: Cannot be determined. 152 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section III - Federal Award Findings and Questioned Costs (Continued) 06-03 - CFDA No. 10.561 Food Stamp Administration (Continued) Management Response: Beginning in October 2006, the reconciliation procedure was changed to institute a daily reconciliation of EBT cards. A new Daily Inventory Reconciliation of Blank EBT Cards form was created to aid in the reconciliation process. The EBT cards are pulled at the end of the day and counted for each technician by an Accounting Clerk IV. The counts are written on the revised EBT form. Once balanced, the Clerk IV will have it verified by either the Accountant II or the Accountant III. All cards are then locked in a safe in the Business Office. 153 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section III - Federal Award Findings and Questioned Costs (Continued) 06-04 - CFDA No. 93.558 Temporary Assistance for Needy Families Temporary Assistance for Needy Families (TANF) Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: TANF participants must have a current Individual Responsibility Contract (IRC), as well as provide immunization records for children covered by the program. Condition and Context: We tested a sample of eleven files. In the sample, we found one file did not contain an IRC, one file did not contain immunization records, and one file could not be located by the County. The County believes the file was destroyed years ago. Cause: Inconsistent management of case files allow a lack of required documentation to be present in the file. Effect: Without current and proper documentation in the file, there is the ability for ineligible participants to receive benefits. This program is designed to be a temporary assistance, which increases the need to verify current data. Recommendation: We recommend the Department ensure all program participants are validated with appropriate supporting documentation. Questioned Costs: Cannot be determined. 154 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section III - Federal Award Findings and Questioned Costs (Continued) 06-04 - CFDA No. 93.558 Temporary Assistance for Needy Families (Continued) Management Response: The Weld County Department of Social Services will provide additional training to all staff to ensure proper supporting documentation is completed and received by the client to determine eligibility properly. The Department will also expand our sample size on monthly case audits to assist in minimizing any future compliance issues. 155 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section IV - Prior Year Findings 05-01 - CFDA No. 10.551 Food Stamp Program Missing Supporting Documents for Verification Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria: Eligibility will be determined based on size of household and the number of dependents. State agencies are required to verify and document all evidence to support their determination. Condition and Context: From 60 selected samples testing, four Food Stamp cases do not have documentation to support size of household and child(ren) information, filed by the program participants in the application. Cause: With the implementation of the CBMS system, staff time has been spent on inputting into the system instead of reviewing case files. Effect: Without supporting evidence to prove information in the application, the eligibility determination may be incorrect. Recommendation: We recommend that the Department of Social Services request the applicants provide documentation to support the size of the household and number of dependant children. Questioned Costs: Cannot be determined Auditor Response: This item has been corrected based on the 2006 audit testing performed. 156 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section IV - Prior Year Findings (Continued) 05-02 - CFDA No. 10.551 Food Stamp Program Food Stamp Claim against Household Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria: State agencies are required to verify correctness of all information which will be entered into the CBMS system. Condition and Context: One case of the 60 tested samples calculated an incorrect benefit amount. The overpayments should have been claimed back from the participant. However, the error came from administration, and the claim was forgiven. Effect: Food Stamp benefits might be overstated to the participants without recourse. Cause: Because of the problems with the automated system, benefit overpayments are frequent. The County is splitting resources into review of applications and problem-solving issues with the new CBMS system. Recommendation: We recommend the Department of Social Services implement a monitoring process to prevent, detect and correct errors in a timely manner. Questioned Costs: $ 648 Auditor Response: This item has been corrected based on the 2006 audit testing performed. 157 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section IV - Prior Year Findings (Continued) 05-03 - CFDA No. 10.551 Food Stamp Program Sanctions on ABAWD Cases Only Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria: Sanctions need to be applied to all participants of the Food Stamp program, if they do not meet program requirements. Condition and Context: During discussions in choosing a sample from the population of Food Stamp participants, it was noted that only ABAWD cases were sanctioned for most of 2005. Cause: Because of numerous issues with the CBMS program, staff time was spent correcting system issues instead of measuring compliance with program requirements. Effect: There is no system in place to sanction work registrants in the Food Stamp system. Recommendation: We recommend that the Department of Human Services include all Food Stamp cases for program participants. Questioned Costs: Cannot be determined Auditor Response: This item has been corrected based on the 2006 audit testing performed. 158 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section IV - Prior Year Findings (Continued) 05-04 - CFDA No. 10.551 Food Stamp Program Manual Sanction Process Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria: All sanctions should be electronically processed immediately when found not compliant with the program requirements. Condition and Context: Before September 2005, all sanctions were processed manually. The case counselor issued formal written sanctions, and then at a later date, posted the sanctions into CBMS. Cause: Staff time was spent training and correcting issues in the CBMS system, and sanctions were not completed in CBMS due to errors caused by the electronic sanction system. Effect: Benefit payments are being paid to ineligible participants. Recommendation: We recommend sanctions be processed and posted to the CBMS system in a timely fashion. Questioned Costs: Cannot be determined Auditor Response: This item has been corrected based on the 2006 audit testing performed. 159 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section IV - Prior Year Findings (Continued) 05-05 - CFDA No. 93.600 Head Start Head Start Program Direct Federal Grants Federal Agency: Department of Health and Human Services Criteria: To be eligible for the Head Start Program, families must meet age and income standards set by the federal grant. Condition and Context: When reviewing one file out of a sample of 25 participants, we found an income authorization (W-2) with a completely different name than the name on the application under the parent/guardian section. Cause: Supporting documentation of the determination was not made in the file, and information included as support in the file was inconsistent with applicant information. Also, no explanations of eligibility were documented. Effect: Eligibility documentation conflicts with admittance into the Head Start Program. Without documentation of additional procedures used to support eligibility, benefits could be paid to ineligible participants. Recommendation: Ensure all program participants are validated with appropriate supporting documentation. Questioned Costs: Cannot be determined. Auditor Response: This item has been corrected based on the 2006 audit testing performed. 160 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2006 Section IV - Prior Year Findings (Continued) 05-06 - CFDA No. 93.558 Temporary Assistance for Needy Families Temporary Assistance for Needy Families (TANF) Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: Individuals applying for Colorado Works benefits shall be required to enter into an Individual Responsibility Contract (IRC) with the County. Condition and Context: Documentation supporting the County's compliance with program requirements was incomplete. Specifically there was no Individual Responsibility Contract (IRC) in the file correlating to the months benefits were paid. This was the case for four of the 35 TANF files tested. Effect: Benefits were continuing to be paid to clients who had not met the requirements of the program. Recommendation: Ensure that all IRC's are completed timely and documented in the file. Questioned Costs: $750. Auditor Response: Still a Finding - See Finding 06-04 161 COUNTY OF WELD STATE OF COLORADO NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2006 NOTE 1: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards, which includes the federal grant activity of the County of Weld, Colorado, is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the Weld County, Colorado's financial statements for the year ended December 31, 2006. NOTE 2: COMMODITY SUPPLEMENTAL FOOD PROGRAM Non-monetary assistance is reported in the schedule at the fair market value of the commodities distributed during the year. At December 31, 2006, the County had food commodities totaling $191,744 in inventory, with a corresponding amount reported as deferred revenue to be realized when distributed. NOTE 3: SUB-RECIPIENT The County does not have any significant sub-recipients. 162 Hello