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COUNTY OF WELD STATE OF COLORADO 2006-1932 Prepared by: Finance/Accounting YEAR ENDED DECEMBER 31, 2005 Departments nimentiarka maim 4cst* Inc 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 8 Organization Chart 9 Principal County Officials 10 FINANCIAL SECTION Independent Auditors'Report 11 Management's Discussion and Analysis 13 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Assets 23 Statement of Activities 24 Governmental Fund Financial Statements: Balance Sheet 26 Reconciliation of Total Governmental Fund Balances to the Statement of Net Assets 28 Statement of Revenues, Expenditures and Changes in Fund Balance 30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 32 Proprietary Fund Financial Statements: Statement of Net Assets -Proprietary Funds 33 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds 34 Statement of Cash Flows -Proprietary Funds 35 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets 36 Statement of Changes in Fiduciary Net Assets 37 Notes to the Financial Statements 38 Required Supplementary Information Pension Trust 65 Modified Approach for Infrastructure Assets 66 Required Supplementary Information Other Than MD&A: Schedules of Revenues, Expenditures and Changes in Fund Balances-Actual and Budget Major Funds: General Fund 67 Public Works Fund 72 Social Services Fund 74 Human Services Fund 76 Supplemental Information: Combining Statement of Non-major Governmental Funds: Explanation of Funds 79 Combining Balance Sheet 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 86 Schedules of Revenues, Expenditures and Changes in Fund Balances-Actual and Budget Non-major Governmental Funds: Special Revenue Funds: Capital Expenditures Fund 88 Conservation Trust Fund 89 Contingent Fund 90 Emergency Fund 91 Public Health Fund 92 Solid Waste Fund 93 Bebee Draw Fund 94 Component Units: Housing Authority 95 E-911 Authority Fund 96 Local Highway Finance Report 98 Combining Statements of Internal Service Funds: Combining Statement of Net Assets -Internal Service Funds 100 Combining Statement of Revenues, Expenses and Changes in Net Assets - Internal Service Funds 102 Combining Statement of Cash Flows -Internal Service Funds 104 Combining Statement of Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities -Fiduciary Funds 106 ii Schedule of Revenues, Expenses and Changes in Fund Equity-Actual and Budget Enterprise Fund and Internal Service Funds: Enterprise Fund: Paramedic Services 107 Internal Service Funds: Motor Vehicle Fund 108 Health Insurance Fund 109 Insurance Fund 110 Phone Service Fund 111 Weld Finance Corporation 112 STATISTICAL SECTION Net Assets by Componet 114 Changes in Net Assets 115 Fund Balances of Governmental Funds 117 Changes in Fund Balances, Governmental Funds 118 Assessed and Estimated Actual Value of Property 119 Property Tax Levies-Direct and Overlapping Governments 120 Principal Taxpayers 121 Property Tax Levies and Collections 122 Direct and Overlapping Governmental Activities Debt 123 Legal Debt Margin Information 124 Private Purpose Revenue Bonds 125 Demographic and Economic Statistics 126 Principal Employers 127 Full-time Equivalent Employees by Function/Program 128 Operating Indicators by Function/Program 129 Capital Asset by Function/Program 130 Insurance in Force 131 SINGLE AUDIT Schedule of Expenditures of Federal Awards 133 Notes to Schedule of Expenditures of Federal Awards 138 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards 139 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 141 Schedule of Findings and Questioned Costs 143 Summary Schedule of Prior Audit Findings 150 iii COLORADO DEPARTMENT OF FINANCE AND ADMINISTRATION PHONE (970) 356-4000, EXT.4218 FAX: (970)352-0242 P.O. BOX 758 GREELEY, COLORADO 80632 June 1, 2006 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, 2005, 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. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities have been included. With the December 31, 2005 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 legally separate entities that have significant operational or financial relationships with the County. These include the Weld County Housing Authority,Weld County Retirement Plan, Beebe Draw Law Enforcement Authority, Weld County Finance Corporation, and E-911 Authority. These entities are also included in the County's financial statements. 1 49eDEPARTMENT OF FINANCE 1 AND ADMINISTRATION WI P PHONE (970) 356-4000, EXT.4218 FAX: (970) 352-0242 O P.O. BOX 758 GREELEY, COLORADO 80632 COLORADO June 1, 2006 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, 2005, 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. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities have been included. With the December 31, 2005 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 legally separate entities that have significant operational or financial relationships with the County. These include the Weld County Housing Authority, Weld County Retirement Plan, Beebe Draw Law Enforcement Authority, Weld County Finance Corporation, and E-911 Authority. These entities are also included in the County's financial statements. 1 Honorable Board of Commissioners 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 31,2005, are fairly presented in conformity with Generally Accepted Accounting Principals (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 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 2005 was approximately 220,000. 2 Honorable Board of Commissioners 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 Outlay. Control is maintained by the three categories at the division/department level in the General Fund and at the fund level in all other funds. Supplemental appropriations are approved by the Board of County Commissioners as needed during the year to provide for those items that were unknown or unforeseen at the time the budget was originally adopted. County Employment. Weld County government employs 1,062 regular staff (those receiving standard benefits) and 254 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 non-insurance benefits. MAJOR INITIATIVES For the Year. In 2005, 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 2005: 3 Honorable Board of Commissioners > Staff and open 110 additional work release beds. > Increase traffic enforcement in Weld County to reduce traffic fatalities. > Cope with the continued growth and development in the county. > Continue development of a geographic information system (GIS). > 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. > Continue benchmark efforts for county services. > Continue document imaging process in county departments. > Identify technology uses to improve services and cost-effectiveness of services. > Enhance public relations and communication efforts with constituents. > Implement final phase of the 800 MHz radio system. > Continue implementation of e-gov strategy. > Acquire voting equipment to be in compliance with the Help America Vote Act (HAVA). > Continue to explore revenue and operational options to keep the Paramedic Services a viable and affordable service to the citizens. > Construct Southeast Weld Administration Building. > Provide dispatch services to City of Fort Lupton and Fort Lupton Fire Protection District. > Monitor West Nile Virus, but no spraying. > Continue to develop plans for the County for bioterrorism and emergency preparedness. 4 Honorable Board of Commissioners FACTORS AFFECTING FINANCIAL CONDITION Economic Conditions and Outlook. In 2006 it is anticipated that the national economy will continue to gain vitality with continued growth in the real Gross Domestic Product(GDP),even in the aftermath of Hurricane Katrina. Inflation is anticipated to remain low, and most likely interest rates will remain low with only some pressure for upward movement. Investment in new non-residential structures and new equipment will continue, which should result in continued improvement in the national economy and growth in corporate profits. The federal deficit, although still a problem, has been reduced some as the economy grows and tax revenues increase. Colorado's state economy also shows signs of improvement as employment opportunities grow in the health care, education, construction, and retail sectors. New construction and housing remain strong in the State. 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 is starting to grow again after three years of contraction in the State. Finally, tourism is recovering from the dramatic drop caused by September 11th and the recession. Weld County's local economy is performing well. Unemployment is under six percent and job numbers are growing. The housing and construction markets remain strong. 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 the North Colorado Medical Center; the Kodak plant in Windsor,which has been picked by Kodak to expand its digital imaging technology production;and Owens-Illinois,which is opening a new bottle manufacturing plant. 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 continued infrastructure development. For the Future. Weld County faces several critical issues in 2006 that will present choices and opportunities, to enable the County to resolve the many interrelated problems in an intentional and coordinated way. The issue of growth raises problems of land use allocation, management of growth, transportation system development, and overall service capacity. As Weld County grows and changes, there are issues concerning quality of life and economic development to support the quality of life 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 which can only be provided functionally and in an equitable manner through metropolitan or special districts. 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 increase, even with the planned new jail expansion being accelerated by one year. Caseload for the Sheriff, District Attorney,and courts is growing at a 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. 5 Honorable Board of Commissioners 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 continues to be in the middle of a difficult fiscal period. The State of Colorado is in a"structural deficit"resulting from the fiscal interplay between the tax and spend limits in TABOR and Amendment 23, dealing with school financing. The State legislature has explored a variety of options to correct the problem. Two referendums addressing the fiscal issues were placed on the November ballot. Referendum C did pass on the November 1,2005, ballot,which gives the State $3.7 billion in relief from TABOR over the next five years. Weld County has been adversely impacted by the State's budgetary problems since the County is a subdivision of the state, and program revenues and expenditures are dependent upon State decisions,especially in the areas of health, employment, and social services. The passage of Referendum C should provide counties some stability in State funding. The federal budget and deficit will place additional strain on the State's budget. The federal government is not increasing, and is even reducing, funding in the domestic program areas, and does not seem to be willing to help bail out the many states, like Colorado, with budget problems. Therefore,the solutions to the state and federal budget problems, as they impact Weld County,will have to be solved locally. The awarding of federal grant dollars will become more competitive and will require Weld County to become more aggressive in pursuing federal grants. 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, 2005, in funding 81.8 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 the actuary. 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 $2,773,226 in 2005. 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, 2005, 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. 6 Honorable Board of Commissioners Risk Management. During 2005 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, 2004. 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. 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 2005 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, 2005. 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. Re ectfully submitted, Donald D. Warden, Director Finance and Administration 7 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, 2004 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. {! 6 _ ✓g ittair t non r President i Nam Executive Director 8 PM L E n L N n 13 f/) $ = 3 as o�rty7 22) o Im" co U) O 5� e $ a Y O o > U) L U a o w cll Z Q �' � v � � � 15 W U Q f. s co Za`�i 2 iii �\ C C U O O 0 L I L' c m N m O O O U_ .N c N V N fn U in Z W _ -t m Z Ea fl m C 2_ m 0 O. = U) pU PC) � � =' E >,.. 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Oyc N N UU a a c I! 13 m Ow :t'in \ J it d Q 0 9 COUNTY OF WELD STATE OF COLORADO PRINCIPAL COUNTY OFFICIALS December 31, 2005 Board of County Commissioners William Jerke Mike Geile Robert Masden Glenn Vaad David Long 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 10 FINANCIAL SECTION J y 40101e0 COLORADO BONDI & Co. LLC 44 INVERNESS DRIVE EAST (303)799-6826 PHONE ENGLEWOOD,COLORADO 80112 CERTIFIED PUBLIC ACCOUNTANTS (800)250-9083 TOLL-FREE MANAGEMENT CONSULTANTS www.bondico.com (303)799-6926 FAX Board of County Commissioners Weld County, Colorado Independent Auditors' Report We have audited the accompanying financial statements of the governmental activities, the business-type activities, the 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, 2005, 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. The financial statements of Weld County, Colorado, as of December 31, 2004, were audited by other auditors whose report dated May 20, 2005, expressed unqualified opinions on those statements. We did not audit the financial statements of the Weld County Housing Authority. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinions on the basic financial statements, insofar as they relate to the amounts included for the Weld County Housing Authority, are 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 provides 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 discretely presented component units, each major fund, and the aggregate remaining fund information of Weld County, Colorado, as of December 31, 2005, and the respective changes in financial position and cash flows, where applicable, thereof for the year then •s of ; Affiliate Offices Worldwide 11 Board of County Commissioners Weld County, Colorado ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated May 5, 2006 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 internal 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, the schedule of pension funding progress, condition assessments of infrastructure, and budgetary comparison information on pages 13 through 22 and 63 through 64 are not a required part of the basic 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, and the schedule of expenditures of federal awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are 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. ` '" 04. U.C. May 5, 2006 BONDI& Co. u.c 12 l n col 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, 2005. 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$283.8 million at the end of 2005. Of this amount, $41.2 million may be used to meet the government's ongoing obligations to citizens and creditors. The remaining $242.6 million is invested in capital assets or restricted by law. • The County's General Fund balance was$9.1 million as of December 31, 2005.Of this amount, $1.5 million is reserved for emergencies, advances, and encumbrances. • The 2005 General Fund balance is $.9 million higher than in the previous year. The total fund balance is 17%of 2005 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 2006. 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. 13 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 govemmental 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 23 through 32 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. The remaining proprietary funds, all of which are internal service funds, are combined into a single, aggregated 14 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 33 through 35 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 36 through 37. Budgetary Comparisons.Weld County adopts an annual appropriated budgetfor all of its funds.A budgetary comparison statement has been provided for all major funds on pages 67 to 77 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 38 through 63 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 84 through 94 and 100 through 112 respectively. 15 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, 2005, assets exceeded liabilities by $281.6 million. The following table provides a summary of the County's governmental and business-type net assets for 2004 and 2005. Table 1 Net Assets (in Millions) Governmental Activities Business-type Activities Total 2004 2005 2004 2005 2004 2005 Assets Current and other assets $115.40 $131.48 $ .30 $1.83 $115.70 $133.31 Capital assets 246.31 237.26 .86 .81 247.17 238.07 Total assets $361.71 $368.68 $1.16 $2.64 $362.87 $371.32 Liabilities Current and other liabilities $ 73.78 $79.74 $ .30 $ .32 $ 74.08 $ 79.64 Long-term liabilities 7.80 7.44 .00 .00 7.80 7.86 Total liabilities $ 81.58 $87.18 $ .30 $ .32 $ 81.88 $87.50 Net Assets Invested in capital assets, of related debt $239.92 $231.27 $ .86 $ .81 $240.78 $232.08 Restricted 9.45 10.45 .00 9.45 10.45 Unrestricted 30.76 39.78 .00 1.51 30.76 41.29 Total net assets $280.13 $281.50 $ .86 $2.32 $280.99 $283.82 A significant portion of Weld County's net assets (14.6%) represents unrestricted net assets of $41.29 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 (81.8%) 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. 16 An additional $10.4 million of the County's net assets (3.7%)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 2005,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 $4.8 million in 2005. The following table indicates the changes in net assets for governmental and business-type activities in 2004 and 2005. Table 2 Changes in Net Assets (in Millions) Governmental Activities Business-type Activities Total 2004 2005 2004 2005 2004 2005 Revenues Program revenues: Charges for services $30.72 $33.80 $9.98 $7.83 $40.70 $41.63 Operating grants and contributions 27.12 27.89 0.05 0.00 27.17 27.89 General revenues: Property taxes 50.79 56.38 0.00 0.00 50.79 56.38 Other taxes 10.13 10.36 0.00 0.00 10.13 10.36 Other revenues 1.64 3.04 0.00 0.00 1.64 3.04 Total revenues $120.40 $131.47 $10.03 $7.83 $130.43 $139.30 Expenses General government $21.46 $ 23.05 $0.00 $0.00 $21.46 $23.05 Public safety 30.78 30.45 0.00 0.00 30.78 30.43 Streets and highways 32.69 36.92 0.00 0.00 32.69 36.92 Culture and recreation 1.01 .77 0.00 0.00 1.01 .77 Net Assets 1/1/05 23.54 24.84 0.00 0.00 23.54 24.84 Interest on long-term debt .36 .34 0.00 0.00 .36 .34 Total expenses 12.65 13.74 0.00 0.00 12.65 13.74 Paramedic services 0.00 0.00 9.74 6.37 9.74 6.37 Total expenses $122.49 $130.11 $9.74 $6.37 $132.23 $136.46 Increase(decrease)in net assets (2.09) 1.36 .29 1.46 (1.80) 2.84 Net Assets 1/1/05 282.22 280.13 .57 .86 282.79 280.99 Net Assets 12/31/05 $280.13 $281.49 $ .86 $2.32 $280.99 $283.81 Governmental Activities. Governmental activities increased Weld County's net assets by $1.36 million in 2005. Key elements of this decrease are as follows: • Total revenues were$131.13 million, up 8.9%from the prior year, primarily due to property taxes ($5.59 million) and charges for services ($3.1 million). 17 • Expenses totaled $127.64 million. This represents a 4.2% 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 2005 by $1.46 million, in large part due to rate increases and more aggressive collection efforts. 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 2005, the combined ending fund balances of County governmental funds was $47.71 million. Approximately 78% 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 ($5.14 million); 2) a state- constitution mandated emergency reserve ($4.0 million); 3)an advance to the Paramedic Services ($885,000); and 4) prepaid expenses and inventory ($1.2 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 $9.1 million as of December 31, 2005. Of this amount, $885,000 is reserved for advances. The 2005 fund balance is $1 million higher than the previous year due to the delay in spending $350,000 for new voting machines required under the Help America Vote Act (HAVA) 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 14% of total 2005 expenditures, while total fund balance is 16.6% 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 $15.8 million in fund balance at the end of 2005. This amount was $1.8 million more than the previous year. 2005 expenditures for road projects were less than budgeted. 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 $2.9 million balance at the end of 2005 which is 1.5% more than 2004. 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 18 in expenditures for 2005 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 completion of the downtown Greeley parking lot and renovation of the courthouse to add courtrooms. The$5.2 million increase in fund balance between 2004 and 2005 represents the encumbrances of $3.6 million reserved for the Southeast Weld Services Center and Administrative Offices, and the remaining fund balance is reserved for the jail expansion project. Proprietary Funds Overview The County's proprietary fund statements provide the same of information found in the government-wide statements, but in more detail. The County has one enterprise-type fund. The Paramedic Services Fund. Unrestricted net assets of the fund at the end of the year amounted to$(1.5 million). The total increase in net assets for the fund was $1.5 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, 2004 and 2005 14 IF lin r . ` t4i lifit12 EISIMItral 10 MIME I j ill 0 8iilligrin HiIlinrilialliffl (8f q , a � �"1 a� I 2 O 2004 oMEI ■2005 General Public Social Human Capital Other Govt. Fund Works 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 2004, the Board of County Commissioners appropriated $55.1 million for general fund expenditures and other financing uses. 19 Table 3 2005 General Fund Budget (in Millions) Original Budget Amendments Final Budget Actual Revenue and other financing sources $ 55.2 $ 5.5 $ 60.7 $ 62.1 Expenditures and other financing uses $ 55.1 $ 2.3 $ 57.4 $ 61.2 Mid-year budget amendments included: • $.5 million for 800 MHz equipment and development • $1.0 million to house inmates in other jurisdictions • $.2 million for grants for economic development • $3.8 million transfer for capital projects • $2.3 million for administration building and Southeast Weld Service Center • $.4 million for public safety overtime • A number of mid-year grants in the health and human services area account for the budget adjustment in those funds • Prior year encumbrances were re-appropriated mid-year Actual expenditures were below anticipated budget and less than revenues, which allowed the ending fund balance to increase nearly$ 1.0 million over the prior year. 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, 2005 totals $237.6 million (net of accumulated depreciation). This investment includes all land, buildings, machinery, equipment, and infrastructure. The total decrease in investment in capital assets for the current fiscal year was 3.5%. Major capital asset events during the current fiscal year including the following: • Road construction or major improvements totaling $4.3 million. • Began the design phase of the 375 bed jail expansion. • Completed downtown Greeley parking lot. • Started the construction of the Southeast Weld Service Center • Began construction of Administrative offices for Election and Information Services 20 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 mile of roads. 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, 2005, Weld County had only the outstanding long-term debt (principal amount)of$5.99 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$108.5 million in 2005. The county currently has no debt subject to the limitation. No new debt was issued in 2005. 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 2005 budget. • Staff and open 110 additional work release beds. • Increase traffic enforcement in Weld County to reduce traffic fatalities. • Cope with the continued growth and development in the county. • Continue development of a geographic information system (GIS). • 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. • Continue document imaging process in county departments. • Identify technology uses to improve services and cost-effectiveness of services. • Enhance public relations and communication efforts with constituents. • Implement final phase of the 800 MHZ radio system. • Continue implementation of e-gov strategy. • Acquire voting equipment to be in compliance with the Help America Vote Act (HAVA). • Continue to explore revenue and operational options to keep the Paramedic Services a viable and affordable service to the citizens. • Construct Southeast Weld Administration Building. 21 • Provide dispatch services to City of Fort Lupton and Fort Lupton Fire Protection District. • Continue to develop plans for the County for bioterrorism and emergency preparedness. 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. 22 BASIC FINANCIAL STATEMENTS 44,Vril 111Ille COLORADO COUNTY OF WELD STATE OF COLORADO Statement of Net Assets December 31, 2005 Primary Government Component Units Governmental Business-type Housing E-911 Activities Activities Total Authority Authority ASSETS Cash and cash equivalents $ 55,741,927 $ 366,468 $ 56,108,395 $ 1,259,060 $ 2,130,666 Property taxes receivable 64,452,444 - 64,452,444 - - Receivables(net of allowance for uncollectibles) 2,419,319 2,159,037 4,578,356 752,419 - Due from other governments 1,813,772 - 1,813,772 - - Internal balance 693,236 (693,236) - - - Inventories 1,284,850 - 1,284,850 - - Other assets 230,798 - 230,798 1,723 - Restricted assets: Cash and cash equivalents 4,780,690 - 4,780,690 - - Capital assets,net(Note 6) 237,263,250 809,643 238,072,893 10,500 853,530 Total assets 368,680,286 2,641,912 371,322,198 2,023,702 2,984,196 LIABILITIES Accounts payable and other current liabilities 7,846,714 47,799 7,894,513 28,953 10,289 Accrued liabilities 3,140,919 266,251 3,407,170 1,096 - Due to other governments 7,301 - 7,301 - - Unearned revenue 68,223,000 9,897 68,232,897 84,369 - Other liabilities 22,108 - 22,108 - - Long-term liabilities: Due within one year: Certificates of participation 420,000 - 420,000 - - Compensated absences 81,217 - 81,217 26,322 - Due in more than one year: Certificates of participation 5,571,894 - 5,571,894 - - Compensated absences 1,869,044 - 1,869,044 - - Total liabilities 87,182,197 323,947 87,506,144 140,740 10,289 NET ASSETS Invested in capital assets,net of related debt 231,271,356 809,643 232,080,999 10,500 853,530 Restricted for: Programs 4,695,690 - 4,695,690 - - Emergencies 4,000,000 - 4,000,000 - - Claims(Note 7) 1,748,950 - 1,748,950 - - Unrestricted 39,782,093 1,508,322 41,290,415 1,872,462 2,120,377 Total net assets $ 281,498,089 $ 2,317,965 $ 283,816,054 $ 1,882,962 $ 2,973,907 See accompanying notes to the basic financial statements 23 COUNTY OF WELD STATE OF COLORADO Statement of Activities Year Ended December 31, 2005 Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Primary government: Governmental activities: General government $ 23,047,725 $ 9,792,423 $ 774,238 $ - Public safety 30,449,441 5,430,422 2,872,223 - Streets and highways 36,919,372 3,433,713 8,828,866 - Healthandwelfare 24,843,147 13,664,206 2,817,125 - Culture and recreation 771,295 333,293 452,813 Economic assistance 13,736,745 1,156,012 12,139,782 - Interest on long-term debt 340,411 - - - Totalgovernmentalactivities 130,108,136 33,810,069 27,885,047 - Business-type activities: Paramedic service 6,366,088 7,829,714 - - Total primary government $ 136,474,224 $ 41,639,783 $ 27,885,047 $ - Component units: Housing Authority $ 2,845,245 $ 202,954 $ 2,739,561 $ 30,000 E-911 Authority 923,538 1,351,811 - - Total component units $ 3,768,783 S 1,554,765 $ 2,739,561 $ 30,000 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 24 Net(Expenses)Revenues and Changes in Net Assets Primary Government Component Units Governmental Business-type Housing E-911 Activities Activities Total Authority Authority $ (12,481,064) $ - $ (12,481,064) $ - $ - (22,146,796) - (22,146,796) - - (24,656,793) - (24,656,793) - - (8,361,816) - (8,361,816) - - 14,811 - 14,811 - - (440,951) - (440,951) - - (340,411) - (340,411) - - (68,413,020) - (68,413,020) - - 1,458,301 1,458,301 - - (68,413,020) 1,458,301 (66,954,719) - - - - - 127,270 - - - - - 428,273 - - - 127,270 428,273 56,382,533 - 56,382,533 - - 6,627,991 - 6,627,991 - - 3,733,025 - 3,733,025 - - 2,679,442 - 2,679,442 - - 355,784 - 355,784 - - 69,778,775 - 69,778,775 - - 1,365,755 1,458,301 2,824,056 127,270 428,273 280,132,334 859,664 280,991,998 1,755,692 2,545,634 $ 281,498,089 $ 2,317,965 $ 283,816,054 $ 1,882,962 $ 2,973,907 25 COUNTY OF WELD STATE OF COLORADO Governmental Funds Balance Sheet December 31, 2005 Public Works Social Services General Fund Fund Fund ASSETS Cash and shod-term investments $ 14,505,460 $ 15,130,111 $ 4,803,406 Receivables (net of allowance for uncollectibles): Current property taxes 44,317,337 6,645,226 5,578,234 Delinquent property taxes 46,991 5,907 5,452 Accounts 528,015 250,909 65,337 Special assessment - 90,348 - Due from other County funds 216,542 142,147 - Due from other governments 115,049 - 865,678 Advances to other funds 885,000 - - Inventories 113,395 835,961 - Other assets 218,093 6,462 - Total Assets $ 60,945,882 $ 23,107,071 $11,318,107 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 5,618,055 $ 215,487 $ 122,833 Accrued liabilities 1,258,903 259,578 130,912 Other liabilities - - 22,108 Due to other County funds 49,268 112,018 556,466 Due to other governments - - 7,301 Unearned revenue 44,668,922 6,754,595 7,677,133 Unexpended grant revenue 215,626 - - Total Liabilities 51,810,774 7,341,678 8,516,753 Fund Balances: Reserved for encumbrances 269,700 1,319,860 - Reserved for advances to other funds 885,000 - - Reserved for other assets 218,093 6,462 - Reserved for inventories 113,395 835,961 - Reserved for emergency - - - Unreserved: General Fund 7,648,920 - - Special Revenue Funds - 13,603,111 2,801,354 Capital Project Fund - - - Total Fund Balances 9,135,108 15,765,394 2,801,354 Total Liabilities and Fund Balances $ 60,945,882 $ 23,107,072 $11,318,107 See accompanying notes to the basic financial statements 26 Capital Other Total Human Services Expenditures Governmental Governmental Fund Fund Funds Funds $ 2,859 $ 7,760,391 $ 11,881,198 $ 54,083,425 - 5,553,333 1,294,980 63,389,110 - 5,700 2,310 66,360 385,759 - 710,621 1,940,641 - - - 90,348 205,239 - - 563,928 833,045 - - 1,813,772 - - - 885,000 277,132 - 16,255 1,242,743 1,842 - 330 226,727 $ 1,705,876 $ 13,319,424 $ 13,905,694 $124,302,054 $ 198,848 $ 673,428 $ 58,687 $ 6,887,338 490,581 - 197,891 2,337,865 - - - 22,108 43,437 - 2,014 763,203 - - - 7,301 331,879 5,580,700 1,418,520 66,431,749 - - - 215,626 1,064,745 6,254,128 1,677,112 76,665,190 - 3,553,801 - 5,143,361 - - - 885,000 1,842 - 330 226,727 - - 16,255 965,611 - - 3,100,000 3,100,000 - - - 7,648,920 639,289 - 9,111,997 26,155,751 3,511,495 - 3,511,495 641,131 7,065,296 12,228,582 47,636,865 $ 1,705,876 $ 13,319,424 $ 13,905,694 $124,302,055 27 COUNTY OF WELD STATE OF COLORADO Reconciliation of Total Governmental Fund Balances To Statement of Net Assets December 31, 2005 Total governmental fund balances $ 47,636,865 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 220,576,580 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 (1,950,261) 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 15,426,981 Internal services used by Enterprise Fund (192,076) Net assets of governmental activities $281,498,089 See accompanying notes to the basic financial statements 28 iti 'l Wine COLORADO 29 COUNTY OF WELD STATE OF COLORADO Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended December 31, 2005 Public Works Social General Fund Fund Services Fund REVENUES: Taxes $ 39,463,153 $ 12,558,123 $ 5,245,991 Licenses and permits 1,791,213 328,206 - Intergovernmental 4,136,160 9,765,087 11,813,297 Fines and forfeitures 204,530 - - Charges for services 3,364,422 1,624,951 - Miscellaneous 5,969,673 682,089 2 Fees 7,159,378 902,639 - Total Revenues 62,088,529 25,861,095 17,059,290 EXPENDITURES: Current: General government 22,384,671 - - Public Safety 29,162,721 - - Public Works 1,393,682 24,096,985 - Public health and welfare 476,306 - 17,131,488 Culture and recreation 442,066 - - Economic assistance - - - Capital outlay 741,036 - - Debt Service 340,411 - - Total Expenditures 54,940,893 24,096,985 17,131,488 Excess of Revenues Over (Under) Expenditures 7,147,636 1,764,110 (72,198) Other Financing Sources (Uses): Transfers - in - - 56,250 Transfers - out 6,228,767 - - Total Other Financing Sources (Uses) (6,228,767) - 56,250 Net Changes in Fund Balance 918,869 1,764,110 (15,948) Fund Balances at Beginning of Year 8,216,239 14,001,284 2,817,302 Fund Balance at End of Year $ 9,135,108 $ 15,765,394 $ 2,801,354 See accompanying notes to the basic financial statements 30 Capital Other Total Human Expenditures Governmental Governmental Services Fund Fund Funds Funds $ - $ 4,400,085 $ 1,593,743 $ 63,261,095 - - 2,119,419 12,111,223 187,500 3,096,935 41,110,202 - - - 204,530 984,114 - 2,645,332 8,618,819 200,444 116,297 614,005 7,582,510 113,890 - 8,175,907 13,295,781 4,817,772 7,950,015 131,072,482 - - 22,384,671 671,908 29,834,629 - - 25,490,667 - - 6,677,023 24,284,817 - - 333,837 775,903 13,572,861 - - 13,572,861 4,344,048 80,847 5,165,931 - - - 340,411 13,572,861 4,344,048 7,763,615 121,849,890 (277,080) 473,724 186,400 9,222,592 12,351 4,775,000 2,592,543 7,436,144 - - 1,207,377 7,436,144 12,351 4,775,000 1,385,166 - (264,729) 5,248,724 1,571,566 9,222,592 905,860 1,816,572 10,657,016 38,414,273 $ 641,131 $ 7,065,296 $ 12,228,582 $ 47,636,865 31 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 31,2005 Net changes in fund balances-total governmental funds $ 9,222,592 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 9,787,537 Depreciation expense (19,359,243) Excess of depreciation over capital outlay (9,571,706) 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 (50,525) 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. 1,845,747 Internal services used by Enterprise Funds (80,353) Change in assets of governmental activities $ 1,365,755 See accompanying notes to the basic financial statements 32 COUNTY OF WELD STATE OF COLORADO Statement of Net Assets Proprietary Funds December 31,2005 Business-type Governmental Activity Activities Paramedic Enterprise Internal Fund Service Funds ASSETS Cash and short-term investments $ 366,468 $ 6,439,192 Property taxes receivable - 996,974 Receivables(net of allowance for uncollectibles): Accounts 2,159,037 388,330 Due from other County funds - 209,435 Inventory - 42,107 Other assets - 4,071 Total Current Assets 2,525,505 8,080,109 Capital Assets: Land 48,496 - Improvements other than buildings 55,728 485,897 Buildings 656,305 8,975,977 Machinery and equipment 877,263 25,683,982 Accumulated depreciation (828,149) (18,459,187) Total Capital Assets 809,643 16,686,669 Total Assets 3,335,148 24,766,778 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable 47,799 959,376 Accrued liabilities 266,251 803,054 Due to other County funds 312 9,848 Deferred revenue 9,897 1,575,625 Due within one year - 420,000 Advances from general fund 885,000 - Total Current Liabilities 1,209,259 3,767,903 Noncurrent liabilities: Due in more than one year - 5,571,894 Total noncurrent liabilities - 5,571,894 Total liabilities 1,209,259 9,339,797 Net Assets Invested in capital assets, net of related debt 809,643 10,694,775 Restricted for: Workers'compensation - 190,423 Unrestricted 1,316,246 4,541,783 Total net assets 2,125,889 $ 15,426,981 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. (192,076) Net assets of business-type activities $ 2,317,965 See accompanying notes to the basic financial statements 33 COUNTY OF WELD STATE OF COLORADO Statement of Revenue, Expenses and Changes in Net Assets Proprietary Funds For the fiscal year ended December 31, 2005 Business-type Governmental Activity Activities Paramedic Enterprise Internal Fund Service Funds Operating revenues: Contributions $ - $ 6,695,804 Charges for services 7,728,736 6,969,642 Total operating revenues 7,728,736 13,665,446 Operating expenses: Bad debt expense 2,137,859 - Personnel services 3,135,542 121,045 Supplies 234,819 1,717,624 Purchased services 674,134 2,715,071 Insurance and bonds - 467,161 Depreciation 182,419 2,397,332 Other 77,897 144,120 Claims - 5,897,501 Total operating expenses 6,442,670 13,459,854 Operating income (loss) 1,286,066 205,592 Nonoperating revenues (expenses): Taxes - 742,622 Miscellaneous 4,275 880,979 Interest income - 34,295 Fees 11,127 - State Grant 85,576 150,000 Gain (loss)on disposition of assets (3,770) 127,999 Judgements and damages - 34,447 Net increase(decrease)in fair market value -Interest expense - (341,893) Total nonoperating revenues(expenses) 97,208 1,628,449 Income (loss) before contributions or transfers 1,383,274 1,834,041 Capital contributions (5,325) 11,706 Changes in net assets 1,377,949 1,845,747 Total net assets beginning of year 747,941 13,581,234 Total net assets at end of year 2,125,890 $ 15,426,981 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. 80,353 Change in net assets of business-type activities $ 1,458,302 See accompanying notes to the basic financial statements 34 COUNTY OF WELD STATE OF COLORADO Combining Statement of Cash Flows Proprietary Funds For the fiscal year ended December 31,2005 Business-type Governmental Activity Activites Enterprise Fund Internal Paramedic Services Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers $ 4,469,416 $ 658,073 Cash flows from internal customers - 13,265,398 Cash payments to external suppliers for goods and services (728,404) (9,787,687) Cash payments to internal suppliers for goods and services (419,907) (221,240) Cash payments to employees for services (2,996,003) (292,302) Miscellaneous revenues - 2,750 Net cash provided(used)by operating activities 325,102 3,624,992 CASHFLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes - 742,622 Grants 95,473 - Judgements/damages/losses - 34,447 Miscellaneous 15,402 400.000 Net cash provided by noncapital financing activities 110,875 1,177,069 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (108,233) (3,088,610) Principal paid on long-term debt - (398,355) Interest paid - (341,893) Proceeds from sale of capital assets - 122,775 Grants - 150.000 Net cash provided(used)for capital and related Financing activities (108,233) (3,556,083) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments - 374,706 Net Increase(decrease)in Cash and Cash Equivalents 327,744 1,620,684 Cash and Cash Equivalents at Beginning of Year 38.724 4,818,507 Cash and Cash Equivalents at End of Year $ 366 468 $ 6 439 191 Reconciliation of operating income to net cash provided(used)by operating activities: Operating income(loss) $ 1,286,066 $ 205,592 Adjustments to reconcile operating income to net cash provided(used)by operating activities: Depreciation expense 182,419 2,397,332 Miscellaneous revenue 2,750 Change in assets and liabilities (Increase)decrease in accounts receivable (1,153,528) (218,201) (Increase)decrease in due from other funds - 210,093 (Increase)decrease in inventories - (12,780) (Increase)decrease in other assets 146 60,375 Increase(decrease)in accounts payable (8,428) 608,736 Increase(decrease)in accrued liabilities 19,202 116,192 Increase(decrease)in other liabilities (775) (12,309) Increase(dedrease)in deferred revenue - 267,212 Total adjustments (960,964) 3,419,400 Net cash provided by operating activities $ 375 102 $ 3 624 992 Noncash investing,capital,and financing activities: Contributions of capital assets from(to)government $ (5,325) $ 11,706 Capital asset trade-ins - $ 63,777 See Accompanying notes to the basic financial statements 35 COUNTY OF WELD STATE OF COLORADO Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2005 Agency Weld County Funds Retirement Plan ASSETS Cash and cash equivalents $ 5,167,617 $ - Accounts Receivables (net of allowances for uncollectables): 44 340 Restricted assets Cash - 895,534 Corporate Bonds - 25,397,967 Common Stock - 68,766,748 US Property Fund - 11,134,126 Total assets $ 5,167,661 $ 106,194,715 LIABILITIES AND NET ASSETS Accounts payable $ 289,324 $ 43,628 Due to other governments 4,878,337 - Total Liabilities $ 5,167,661 $ 43,628 NET ASSETS Held in trust for pension benefits and other purposes $ 106,151,087 See accompanying notes to the basic financial statements 36 COUNTY OF WELD STATE OF COLORADO Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the fiscal year ended December 31, 2005 Weld County Retirement Plan Additions: Employer contributions $ 2,779,636 Employee contributions 2,840,227 Earnings on investments 5,424,306 Net appreciation in fair market value of investments 2,288,279 Total Additions 13,332,448 Deductions: Actuarial/Trustee fees 188,921 Benefit payments 5,947,695 Supplies 7,646 Total Deductions 6,144,262 Change in net assets 7,188,186 Net assets - beginning 98,962,901 Net assets -ending $ 106,151,087 See accompanying notes to the basic financial statements 37 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 38 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 6Ch 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. 39 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 40 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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. 41 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. Revenues from property taxes are 42 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 FASB Statements and Interpretations issued on or before 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 43 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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. 44 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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. 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 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 45 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 14, 2005, 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" . 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. 46 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 fixed 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. 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 47 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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, 2005, include $269,700, $1, 319, 860, and $3, 553, 801 for the General Fund, Special Revenue Funds, and Capital Expenditures Funds, respectively, for a total of $5, 143, 361. Reserved for Other Assets: These reserves are established to record all prepaid items. Recorded reserves at December 31, 2005, are $218, 093 and $8, 634 for the General Fund and Special Revenue Funds respectively, for a total of $226, 727. Reserved for Inventories: These reserves are established to record the total level of supply inventories. Recorded reserves at December 31, 2005, are $113, 395 and $852,216 for General Fund and Special Revenue Funds respectively, for a total of $965, 611. 48 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 Reserved for Advances: These reserves are established to record the total advance between funds. Reserve at December 31, 2005, is $885, 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, 2006. 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 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 49 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 2005, 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. Human Services 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. 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. Beebe Draw Law Enforcement 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 $749, 306. The deficit will be recovered through future operations. Note 3 - Equity in Pooled Cash and Investments: The County maintains a cash and investment pool that is available for use by all funds. The cash and investment account is under the custody of the County Treasurer. This account includes certain restricted assets. Each fund' s share of the cash and investment account is displayed on the balance sheets as "Cash and Short-term Investments." Substantially all cash and investments of the Pension Trust Fund are held separately from those of the other County funds. If a fund overdraws its share of a cash and investment account, the shortfall is reported as an inter-fund receivable/advance to other funds in the General Fund with an offsetting inter-fund payable in the overdrawn fund. 50 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 Deposits : Colorado State Statutes, specifically the Public Deposit Protection Act of 1989, require all public monies to be deposited in financial institutions which have been designed as eligible public depositories. Eligible public depositories must pledge eligible collateral, as promulgated by the State banking board, having a market value in excess of one hundred two percent of the aggregate uninsured public deposits. Eligible collateral must be held in the custody of any federal reserve bank or any branch thereof, or of any depository trust company which is a member of the Federal Reserve System and which is supervised by the State banking board. The Statutes further restrict such deposits to eligible public depositories which are either a National Bank or a State Bank located in the State of Colorado. Custodial credit risk for deposits and investments is a risk in the event of a failure of the custodian the County may not be able to recover the value of the investment securities that are in the possession of an outside party. Investments held in U.S. Government agency obligations are held by the custodian in the County's name. The bank balances of the County' s pooled deposits are categorized by level of credit risk as follows: Category A (the least level of risk) includes deposits with financial institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) , with securities held by the County or its agent in the County' s name; Category B includes uninsured deposits collateralized with securities held by the pledging financial institution's trust department or agent in the County' s name, including those collateralized in accordance with the Public Deposit Act of 1989; and Category C (the highest level of risk) includes uninsured or uncollateralized funds held by the pledging financial institution, or by its trust department or agent but not in the County's name, that could be lost if the financial institution fails. Categorized deposits at December 31, 2005 are as follows : Category Bank Carrying A B Balance Amount Primary Government: Pooled Deposits: Demand Deposits $ 100,000 $ 13,458,667 $ 13,558,6667 $ 15,864,617 Certificates of Deposit(Maximum mat- urity of 12 months) 700,000 6,752,741 7,452,741 7,452,741 Total Pooled Deposits $ 800,000 $ 20,211,408 $ 21,011,408 $ 23,317,358 Total Deposits $ 800,000 $ 20,211,408 $ 21,011,408 $ 23,317,358 All deposits made by the County Treasurer in 2005 were done so in eligible public depositories, as defined by the Public Deposit Protection Act of 1989. 51 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 Investments : There are many factors that can affect the value of investments . Some, such as custodial, concentration of credit, foreign currency and interest rate risks may effect the fixed income investments of the County and the Retirement Plan. Equity securities respond to such factors as economic conditions, individual company earnings performance and market liquidity, while fixed income securities are sensitive to credit risks and changes in interest rates. The County and the Retirement Plan have established investment policies to provide the basis for the management of prudent investment programs appropriate to the County and Plan's investments. Investments in U.S. Government Agency Obligations and mutual funds are not subject to concentration of credit risk. The County's investment policy limits the interest rate risk by limiting the investment of the fixed income securities to a maximum maturity of five years . Colorado State Statutes authorize the County to invest in U.S. Treasury bills, notes, and bonds, U.S. government agency securities, general obligations and revenue bonds of any state, commercial paper, money market funds, repurchase agreements, and local government investment pools. At December 31, 2005 there were County funds invested only in U.S Government agency securities. The Weld County Retirement Plan, which is not restricted to invest in the securities as noted above, invests in a balanced portfolio containing investments in domestic and international equities, domestic fixed income, and domestic real estate. The Plan' s investments are the responsibility of the Plan's Board which is assisted in the investment decisions by recommendations made by an independent investment management company contracted by the Board. The County' s investments are categorized by level of credit risk as follows: Category A (the least level of risk) includes investments that are insured or registered or for which the securities are held by the County or its agent in the County' s name; Category B included uninsured or unregistered investments for which the securities are held by the counter party's trust department in the County's name; and Category C (the highest level of risk) included uninsured or unregistered investments for which the securities are held by the counter party or by its trust department or agent but not in the County's name and that portion of the carrying amount of any repurchase agreement that exceeds the market value of the underlying securities. The County's investments at December 31, 2005 consisted totally of U.S. Government Agency Bonds and therefore are all classified as Category A investments. The retirement plan investments cannot be categorized since the specific securities belonging to Weld County cannot be identified. Further detail of the Retirement Plan investments regarding investment risk factors may be obtained by requesting the Plan's Audited Financial Statements from the Weld County Retirement Plan, PO Box 458, Greeley, CO. 52 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 Fair Value/ Category Carrying A Amount Cost Primary Government: Pooled Investments: U.S. Government Agency Bonds $46,769,231 $ 46,769,231 $ 47,544,194 Total Pooled Investments $ 46,769.231 $ 47,544,194 Non-Pooled Investments: Money Market Funds - Finance $ 852 $ 852 Money Market Funds - Retirement Plan 430,199 430,199 Various Mutual Funds - Retirement Plan 105,298,841 92,386,075 Total non-pooled investments $ 105,729,892 $ 92,817,126 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. 53 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 Receivable Fund Payable Fund Amount General Fund Public Works $ 4, 933 Social Services Fund 181,440 Human Services Fund 17, 936 Non-Major Governmental 508 Enterprise Fund 311 Public Works Social Services Fund 142, 147 Human Services Social Services Fund 203,500 General Fund 1,739 Internal Service General Fund 36, 116 Public Works 107, 084 Social Services Fund 29, 380 Human Services Fund 25, 501 Non-Major Governmental 1, 506 Enterprise Fund $ -0- $ 752, 101 Advances from/to other funds: The balance of $885, 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 $ 885, 000 54 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 Social Non-Major Services Services Capital Governmental Total Transfers Out: General Fund $ 12,351 56,250 $4,775,000 $1,385,166 $6,228,767 Non-Major 00 $ 00 $ 00 1,207,377 1,207,377 Total $ 12,351 $ 56,250 54,775,000 $2,592,543 $7,436,144 The County also had noncash transfers. Contribution of capital assets from (to) government: Paramedic Services $ (5, 325) , Internal Service Funds $ (11, 706) . Note 5 - Allowance for Uncollectible Accounts Receivable: The allowance for uncollectible receivables consists of the following a December 31, 2005 : Allowance for Fund Type Uncollectible General $ 17, 644 Special Revenue 5, 168 Capital Expenditures 2, 012 Enterprise 167, 200 Internal Service 343 Total $ 192,367 55 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31,2005 Note 6-Capital Assets: Capital asset activity for the year ended December 31,2005,was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental activites Capital Assets not being depreciated Land and water rights $ 7,644,086 $ 469,704 $ - $ - $ 8,113,790 Gravel Roads 7,005,383 2,934 - 7,008,317 Construction in progress 3,321,727 2,390,817 3,315,390 - 2.397,154 Total capital assets not being depreciated 17,971,196 2,863,455 3,315.390 - 17,519,261 Capital assets being depreciated: Buildings 69,335,091 4,123,300 182,449 73,275,942 Improvements 4,851,900 1,216,942 15,532 - 6,053,310 Equipment 36,003,117 3,907,719 3,515,600 (15,072) 36,380,164 Infrastructure 286.370,119 4,262,887 5,175,621 - 285,457,385 Total capital assets being depreciated 396,560,227 13,510,848 8.889.202 (15,072) 401,166,801 Less accumulated depreciation Buildings 18,459,704 1,666,182 53,173 - 20,072,713 Improvements 1,326,901 169,266 11,390 - 1,484,777 Equipment 21,068,634 3,309,425 2,587,911 (15,072) 21,775,076 Infrastructure 127,361,221 13,267,097 2,538,068 - 138.090,250 Total accumulated depreciation 168.216,460 18,411,970 5,190.542 (15,072) 181,422,816 Total capital assets being depreciated, net 228,343,767 (4,901,122) 3,698,660 - 219,743,985 Governmental activities capital assets, net $ 246 314 963 $ (2 037 667) $7 014 05Q $ - $ 237 263 246 Business-type activities: Capital Assets not being depreciated Land $ 48.496 $ - $ - $ - $ 48.496 Capital assets being depreciated: Buildings 656,305 - - - 656,305 Improvements 55,728 - - - 55,728 Equipment 1,035,066 131,407 304,282 15,072 877,263 Total capital assets being depreciated 1.747,099 131,407 304.282 15,072 1,589,296 Less accumulated depreciation Buildings 268,118 21,566 - - 289,684 Improvements 36,297 3,427 - - 39,724 Equipment 626.755 157,426 300,512 15,072 498,741 Total accumulated depreciation 931,170 182,419 300.512 15.072 828,149 Total capital assets being depreciated, net 815,929 (51,012) 3,770 - 761,147 Business-type activities capital assets,net $ 864 475 $ (51 012) $ 3 77Q $ - $ 809 64Q 56 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 1, 040, 553 Public safety 1, 009,285 Streets and highways 13,413, 217 Economic assistance 121, 152 Culture and recreation 13, 144 Health and welfare 416, 947 Total depreciation expense-governmental activities $ 16, 014,298 Business-type activities Paramedic Service $ 182,419 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. 57 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 : 2004 2005 Unpaid Claims - Beginning $ 506,807 $ 590,417 Incurred Claims (Includes IBNR'S) 439,207 965,406 Claims Paid (355,597) (849,142) Unpaid Claims - Ending $ 590,417 $ 706,681 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 : 2004 2005 Unpaid Claims - Beginning $ 76,695 $ 84,083 Incurred Claims (Includes IBNR's) 121,847 79,305 Claims Paid (114,459) (79,696) Unpaid Claims - Ending $ 84,083 $ 83,692 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 58 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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 $518,647 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, 2005: Internal Service Fund: Certificates of participation $ 6, 010, 000 Less uncredited discount 18, 106 Certificates of participation - net $ 5, 991, 894 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 3 .80% 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. 59 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 Future debt service requirements for the certificates of participation are as follows : Year Principal Interest Total 2006 420, 000 322,293 742,293 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 2011-2016 3,695,000 741, 690 4,436, 690 Total $ 6,010, 000 $ 2,128, 992 $ 8, 138, 992 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 $108,459, 755 at December 31, 2005 . 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, 2005 totaled $12,422, 677. Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2005, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Certificates of participation $ 6,410,000 $ 0 $ 400,000 $ 6,010,000 $ 420,000 Compensated absences General Fund 1,073,206 101,428 78,707 1,095,927 41,544 Public Works 330,686 39,523 3,751 366,458 15,886 Social Services 355,529 17,574 25,213 347,890 16,091 Public Health 140,315 3,737 4,066 139,986 7,696 Total governmental $ 8 309.736 $ 162,262 $ 511,737 Q__7,,@60 261 $ 501,217 60 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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% of their annual covered payroll. The County is required to contribute at an actuarially determined rate; the current rate is 7% 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 $ 3,228,916 Interest on net pension obligation (44,163) Annual Pension Cost 3,184,753 Contributions made 2,779,636 Decrease in net pension asset 405,117 Net pension obligation (asset) beginning of year 552,039) Net pension obligation (asset) end of year $ (146,922) The annual required contribution for the current year was determined as part of the January 1, 2005 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, 2005, was 30 years. 61 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 Three-Year Trend Information: Fiscal Year Annual Percentage of Net Pension Ended Pension APC Contributed Obligation Cost (APC) (Asset) December 31, 2003 2,594,575 84.1% (1,335,980) December 31, 2004 3,018,459 74.0% (552,039) December 31, 2005 3,184,753 87.3% (146,922) Note 11 - Commitments and Contingencies : Commitments At year-end there were projects under construction with commitments of $3, 552, 801 including $2, 277, 036 for the Southeast Weld Administration building and $1, 276, 765 for the North Administration building. 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. 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. 62 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2005 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, 2004 Assets $1, 147, 082 Liabilities 144, 846 Fund Balance 1, 002,236 Additions 1, 542, 392 Deductions 1,444,225 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 734% Employer/Employee 2007 8% Employer/Employee 63 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2005 Note 13 —Non-Cash Activity in Social Services Fund Schedule of EBT Authorizations, Warrant Expenditures and Total Expenditures For the Year Ended December 31, 2005 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 3,017,998 5,972 147,730 3,165,728 153,702 1,348,387 146,318 1,494,705 146,318 Low-Income Energy 0 Assistance Program 1,310,409 589,510 1,706,436 3,016,845 2,295,946 Temporary Assistance for Needy Families Administration 1,500 300 3,600,380 3,601,880 3,600,680 Trails/Child Welfare 11,670,122 1,839,332 5,791,651 17,461,773 7,630,983 1,197,207 262,402 154,433 1,351,640 416,835 Core Services Aid to the Needy Disabled 566,054 98,975 (16,373) 549,681 82,602 IV-D Administration 0 0 1,803,077 1,803,077 1,803,077 CHATS/Child Care 3,080,781 349,879 437,064 3,517,845 786,943 General Assistance 0 0 158,152 158,152 158,152 Subtotal 22,192,458 3,146,370 13,928,868 36,121,326 17,075,238 Food Assistance 12,175,450 0 0 12,175,450 0 Grand Total 34,367,908 3,146,370 13,928,868 48,296,776 17,075,238 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. 64 Required Supplementary Information 2f•i t '/ V4 i' ' r#' Y COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2005 Schedule of Funding Progress Actuarial Actuarial Actuarial Unfunded Funded Covered UAAL as a Valuation Value of Accrued AAL (UAAL) Ratio Payroll Percentage Date Assets Liability (b-a) (a/b) of (a) (AAL) Covered Entry Age Payroll (b) [b-a)/c) 1/1/00 $73,496,057 $ 74,091,851 $ 595,794 99.2% $29,265,761 2.0% 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% Schedule of Employer Contributions Annual Year Ended Required Actual Percentage December 31 Contribution") Contribution Contributed 1999 $1,530,397 $1, 814, 318 110. 0% 2000 $1, 199, 689 $1, 925, 094 151.2% 2001 $1,591, 067 $2, 094, 969 121. 0% 2002 $1, 986, 145 $2, 182, 671 105.5% 2003 $2,734,414 $2,234, 518 79. 8% 2004 $3, 125,337 $2, 779, 636 71.5% "Required contribution at beginning of year. 65 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. 2005 Condition Miles of Road %of Total Good 2256.19 93.5% Fair 124.79 5.2% Poor 30.75 1.3% Comparison of Estimated-to-Actual Maintenance/Preservation 2002 2003 2004 2005 2006 Estimated $1,450,400 $1,464,400 $1,643,167 $1,800,000 $1,861,200 Actual $1,338,087 $1,521,710 $1,785,000 $2,910,000 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. • 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. 66 Required Supplementary Information Other Than MD&A on 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, 2005 Budget- GAAP Basis Original Final Actual Variance REVENUES Taxes: General property taxes $ 41,593,093 $ 41,593,093 $ 41,163,392 $ (429,701) Severance tax 25,000 185,000 188,974 3,974 Tobacco products - 70,000 86,164 16,164 Penalties & interest - - (12,565) (12,565) Property tax adjustment (1,962,812) (1,962,812) (1,962,812) - Total Taxes 39,655,281 39,885,281 39,463,153 (422,128) Licenses and Permits Liquor licenses 4,000 4,000 4,540 540 Planning permits 370,720 780,720 817,434 36,714 Building permits 700,000 800,000 837,417 37,417 Electrical permits 100,000 100,000 131,822 31,822 Total Licenses and Permits 1,174,720 1,684,720 1,791,213 106,493 Intergovernmental: Federal grants 694,323 694,323 51,355 (642,968) Payment in lieu of taxes 2,000 2,000 4,837 2,837 State grants 2,680,598 2,960,532 3,721,823 761,291 Other governmental units 29,890 29,890 119,519 89,629 Cities and towns 385,000 385,000 238,626 (146,374) Total Intergovernmental 3,791,811 4,071,745 4,136,160 64,415 Charges for Service: Plan checking fees 300,000 300,000 322,208 22,208 Charges for services 1,994,321 2,535,321 2,893,759 358,438 Sale of supplies 73,400 73,400 117,121 43,721 Parking 14,500 29,500 31,334 1,834 Total Charges for Services 2,382,221 2,938,221 3,364,422 426,201 Fines and Forfeitures: Property forfeitures/evidence 3,000 3,000 154,989 151,989 Fines (drunk drivers) 149,000 149,000 49,541 (99,459) Total Fines and Forfeitures 152,000 152,000 204,530 52,530 Miscellaneous: Miscellaneous 1,271,327 2,129,875 2,627,539 497,664 Interest 1,000,000 2,000,000 2,449,897 449,897 Rents from buildings 119,382 119,382 143,977 24,595 Royalties 150,000 650,000 748,260 98,260 Total Miscellaneous 2,540,709 4,899,257 5,969,673 1,070,416 67 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, 2005 Budget-GAAP Basis Original Final Actual Variance REVENUES (CONTINUED) Fees: Fee account 5,482,000 6,932,000 7,060,198 128,198 Treasurer's fees 30,000 50,000 51,272 1,272 Cable fees 40,000 48,000 47,908 (92) Total Fees 5,552,000 7,030,000 7,159,378 129,378 Total Revenues 55,248,742 60,661,224 62,088,529 1,427,305 EXPENDITURES General Government: Office of the Board 572,672 581,672 599,794 (18,122) County Attorney 644,993 727,993 743,734 (15,741) Public Trustee 7,000 7,000 - 7,000 Planning and zoning 857,760 970,760 950,657 20,103 Clerk to the Board 205,334 275,334 263,181 12,153 County Clerk 770,245 826,245 828,568 (2,323) Elections and registration 779,578 825,578 820,632 4,946 Motor vehicle 1,330,801 1,424,801 1,404,120 20,681 County Treasurer 725,083 728,333 695,964 32,369 County Assessor 2,229,719 2,369,719 2,317,687 52,032 Maintenance of buildings/grounds 3,804,736 3,924,736 3,671,190 253,546 County Council 26,673 26,673 15,963 10,710 District Attorney 3,335,377 3,793,377 3,554,666 238,711 Juvenile Diversion Grant - 33,334 32,396 938 Victim Assistance 321,013 344,013 847,015 (503,002) White Collar Crime - 30,000 3,361 26,639 DUI - 10,000 1,371 8,629 MYAT- Probation - 30,000 6,678 23,322 Financial administration 349,530 354,530 341,326 13,204 General accounting 403,625 410,625 393,576 17,049 Purchasing 116,584 118,584 116,701 1,883 Personnel 546,520 546,520 476,274 70,246 Geographical Information Systems 270,125 320,125 242,787 77,338 Computer Services 1,679,964 2,039,964 2,599,369 (559,405) Printing and Supply 264,396 310,396 234,661 75,735 Total General Government 19,241,728 21,030,312 21,161,671 (131,359) (CONTINUED) 68 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, 2005 Budget- GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED) Public Safety Sheriff administration 1,179,672 1,179,672 1,142,241 37,431 Crime control and investigations 5,430,532 5,808,307 6,122,941 (314,634) Traffic control 861,093 1,002,866 934,379 68,487 Task force 155,425 155,425 109,614 45,811 Regional forensic laboratory 174,545 183,545 179,612 3,933 Communications services 1,561,698 1,561,698 1,576,270 (14,572) Communication system development - 600,000 571,524 28,476 E-911 administration 700 700 - 700 Criminal justice 882,748 882,748 769,385 113,363 County Coroner 524,761 524,761 475,921 48,840 Correctional administration 11,141,181 12,411,181 12,757,564 (346,383) Community correction 2,629,371 2,629,371 2,482,306 147,065 Building inspection 1,142,393 1,297,393 1,242,483 54,910 Office of emergency management 104,360 129,360 116,591 12,769 Waste water management 12,310 15,810 14,867 943 Animal control 260,426 275,426 259,667 15,759 Pest/weed control 344,418 388,418 374,374 14,044 Victim Advocates - 40,000 32,504 7,496 Solid waste - - 478 (478) Total Public Safety 26,405,633 29,086,681 29,162,721 (76,040) Public Works: General engineering 1,544,633 1,544,633 976,535 568,098 Extension services 377,648 388,648 332,043 56,605 Veteran office 62,813 62,813 57,828 4,985 Airport 9,868 29,868 27,276 2,592 Total Public Works 1,994,962 2,025,962 1,393,682 632,280 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 114,171 334,171 317,556 16,615 A Kid's Place 8,250 8,250 8,250 - Total Public Health and Welfare 316,921 536,921 476,306 60,615 Culture and Recreation: Missile site park 63,546 63,546 52,698 10,848 Parks and Trails 12,500 14,000 14,627 (627) County fair 288,661 288,661 374,741 (86,080) Total Culture and Recreation 364,707 366,207 442,066 (75,859) 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, 2005 Budget- GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED) Miscellaneous: Other 560,937 667,937 712,176 (44,239) Building rents 485,000 515,000 510,824 4,176 Total Miscellaneous 1,045,937 1,182,937 1,223,000 (40,063) Capital Outlay: Capital purchases 3,035,300 2,573,300 741,036 1,832,264 Debt Services: Capital lease 341,893 341,893 340,411 1,482 Total Expenditures 52,747,081 57,144,213 54,940,893 2,203,320 Other Financing Source (Use) Transfers -Out: Appropriation Grants-In-Aid 2,397,517 6,228,767 6,228,767 - Total Other Financing Sources (Uses) (2,397,517) (6,228,767) (6,228,767) - Net Change in Fund Balance 104,144 (2,711,756) 918,869 3,630,625 Fund Balance at Beginning of Year 8,216,239 8,216,239 8,216,239 - Fund Balance at End of Year $ 8,320,383 $ 5,504,483 $ 9,135,108 $ 3,630,625 70 COLORADO 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, 2005 Budget- GAAP Basis Original Final Actual Variance REVENUES: Taxes: General property taxes $ 5,987,855 $ 5,987,855 $ 5,930,729 $ (57,126) Specific ownership taxes 5,875,000 5,875,000 6,626,491 751,491 Penalties & Interest - - 903 903 Total Taxes 11,862,855 11,862,855 12,558,123 695,268 Licenses and Permits Moving permits 250,000 310,000 328,206 18,206 Intergovernmental: Mineral leasing 80,000 230,000 231,832 1,832 Grazing act 15,000 80,000 81,564 1,564 Payment in lieu of taxes 50,000 50,000 19,730 (30,270) Grants 826,400 1,526,400 1,380,155 (146,245) Motor vehicle registration fees 320,000 320,000 338,340 18,340 Highway user tax fund 8,140,000 8,140,000 7,713,466 (426,534) Total Intergovernmental 9,431,400 10,346,400 9,765,087 (581,313) Charges for Services: Charges for services - - 1,624,951 1,624,951 Miscellaneous: Earnings on deposits - - 104,172 104,172 Special assessments - - 12,806 12,806 Miscellaneous 1,389,000 1,389,000 565,111 (823,889) Gain on sale of assets - - - - Recoveryoflosses 1,000 1,000 - (1,000) Total Miscellaneous 1,390,000 1,390,000 682,089 (707,911) Fees: Other fees - - 902,639 902,639 Total Revenues 22,934,255 23,909,255 25,861,095 1,951,840 72 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, 2005 Budget- GAAP Basis Original Final Actual Variance EXPENDITURES Public Works Bridge construction 2,711,595 2,711,595 2,495,495 216,100 Maintenance of condition 3,630,660 3,630,660 4,033,073 (402,413) Maintenance support 1,857,040 2,007,040 1,760,565 246,475 Trucking division 3,065,000 3,065,000 2,858,704 206,296 Mining division 2,260,775 2,510,775 2,017,381 493,394 Administration 836,623 926,623 1,341,451 (414,828) Other public works 13,312,196 14,332,196 8,142,733 6,189,463 Total Public Works 27,673,889 29,183,889 22,649,402 6,534,487 Intergovernmental: Grants-in-aid to cities/towns 1,579,747 1,579,747 1,447,583 132,164 Capital outlay 25,000 25,000 - 25,000 Total Expenditures 29,278,636 30,788,636 24,096,985 6,691,651 Net Change in Fund Balance (6,344,381) (6,879,381) 1,764,110 8,643,491 Fund Balances at Beginning of Year 14,001,284 14,001,284 14,001,284 - Fund Balances at End of Year $ 7,656,903 $ 7,121,903 $ 15,765,394 $ 8,643,491 73 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, 2005 Budget- GAAP Basis Original Final Actual Variance REVENUES Taxes: General property taxes $ 5,300,000 $ 5,300,000 $ 5,246,740 $ (53,260) Penalties & Interest - - (749) (749) Total Taxes 5,300,000 5,300,000 5,245,991 (54,009) Intergovernmental: Welfare 11,810,480 11,810,480 11,813,297 2,817 Miscellaneous: Earnings on deposits - - 2 2 Total Miscellaneous - - 2 2 Total Revenues 17,110,480 17,110,480 17,059,290 (51,190) EXPENDITURES Public Health and Welfare: Administrative - regular 3,986,500 3,986,500 3,365,919 620,581 Administrative - IV-D 1,787,000 1,787,000 1,803,077 (16,077) Employment first 305,000 305,000 234,761 70,239 General assistance 155,000 155,000 213,742 (58,742) TANF 1,983,800 1,983,800 2,295,946 (312,146) AND - State 95,000 95,000 82,602 12,398 Child welfare 7,186,500 7,186,500 7,630,983 (444,483) Daycare 1,038,250 1,038,250 786,944 251,306 Medicaid transportation - - 660 (660) 74 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, 2005 Budget- GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED): OAP-A 118,800 118,800 153,702 (34,902) Core services 1,200,000 1,200,000 416,835 783,165 Administrative- LEAP 127,850 127,850 147,201 (19,351) LEAP- Program - - (884) 884 Total Public Health and Welfare 17,983,700 17,983,700 17,131,488 852,212 Capital Outlay 65,000 65,000 - 65,000 Total Expenditures 18,048,700 18,048,700 17,131,488 917,212 Other Financing Sources (Uses): Transfers - In: - - 56,250 56,250 Total Other Financing Sources (Uses) - - 56,250 56,250 Net Change in Fund Balance (938,220) (938,220) (15,948) 922,272 Fund Balances at Beginning of Year 2,817,302 2,817,302 2,817,302 - Fund Balances at End of Year $ 1,879,082 $ 1,879,082 $ 2,801,354 $ 922,272 75 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, 2005 Budget- GAAP Basis Original Final Actual Variance REVENUES Intergovernmental: Federal grants $ 10,011,500 $ 10,891,500 $ 10,766,675 $ (124,825) State grants 1,562,000 1,737,000 1,344,548 (392,452) Total Intergovernmental 11,573,500 12,628,500 12,111,223 (517,277) Charges for Services: Charges for services 599,000 599,000 984,114 385,114 Total Charges for Services 599,000 599,000 984,114 385,114 Miscellaneous: Donations from private sources 150,000 150,000 157,544 7,544 Other revenue 20,000 20,000 42,900 22,900 Total Miscellaneous 170,000 170,000 200,444 30,444 Total Revenues 12,342,500 13,397,500 13,295,781 (101,719) EXPENDITURES Economic Assistance: Human resources general fund - - 376,455 (376,455) Head start 3,290,000 3,290,000 2,964,819 325,181 Migrant head start 2,630,000 2,630,000 2,286,312 343,688 Preschool program 125,000 300,000 337,501 (37,501) Job service 620,000 700,000 787,637 (87,637) Summer job hunt 20,000 30,000 30,000 - Jobs/New directions 40,000 45,000 45,801 (801) Employment first 178,000 178,000 126,604 51,396 YCPI 40,000 40,000 15,313 24,687 TANF 560,000 560,000 572,435 (12,435) WIA administration 100,000 120,000 109,886 10,114 WIA adult programs 230,000 460,000 445,655 14,345 WIA youth programs 400,000 540,000 541,422 (1,422) JTPA IIB 40,000 40,000 26,128 13,872 WIA planning 50,000 75,000 26,830 48,170 WIA statewide activities 50,000 50,000 15,891 34,109 WIA dislocated worker 250,000 450,000 428,348 21,652 Human resources lab pool 250,000 250,000 295,343 (45,343) UI training program 200,000 200,000 175,926 24,074 76 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, 2005 Budget- GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED): One stop - 170,000 161,926 8,074 AAA administration 67,351 67,351 68,105 (754) OAA title Ill-B 235,000 235,000 232,169 2,831 OAA title III-C1 congregate 424,000 424,000 402,515 21,485 OAA title III-C2 50,000 50,000 42,959 7,041 OAA in home support 15,000 15,000 12,823 2,177 AAA elder abuse 2,500 2,500 1,866 634 AAA ombudsman 4,500 4,500 4,905 (405) Single entry point 510,000 510,000 555,510 (45,510) FTA 120,000 120,000 118,994 1,006 Wellspring/Health fund - - 7,933 (7,933) AAA case management 35,000 35,000 17,824 17,176 Transportation - - 294,001 (294,001) AAA state funds 120,000 120,000 144,549 (24,549) Medicaid transportation 35,000 35,000 35,663 (663) Supplemental foods 1,253,500 1,253,500 1,440,581 (187,081) Part E family caregiver support 120,000 120,000 89,587 30,413 CSBG 290,000 290,000 332,645 (42,645) Total Economic Assistance 12,354,851 13,409,851 13,572,861 (163,010) Capital Outlay: Total Capital Outlay - - - - Total Expenditures 12,354,851 13,409,851 13,572,861 (163,010) 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 - - (264,729) (264,729) Fund Balances at Beginning of Year 905,860 905,860 905,860 - Fund Balances at End of Year $ 905,860 $ 905,860 $ 641,131 $ (264,729) 77 ‘01 , Wilk COLORADO 78 Supplemental Information r r COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2005 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 79 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2005 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. 80 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2005 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. 81 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2005 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 82 istri COLORADO 83 COUNTY OF WELD STATE OF COLORADO Combining Balance Sheet Non-Major Governmental Funds December 31, 2005 Conservation Contingent Emergency Trust Fund Fund Fund ASSETS Cash and short-term investments $ 353,603 $ 4,860,088 $ 4,000,000 Receivables (net of allowance for uncollectibles): Current property taxes - 1,294,980 - Delinquent property taxes - 2,310 - Accounts - - - Inventories - -Other assets - - - Total Assets $ 353,603 $ 6,157,378 $ 4,000,000 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - $ - Accrued liabilities - - - Other liabilities - - - Due to other County funds - -Unearned revenue - 1,302,309 - Unexpended grant revenue - - - Total Liabilities - 1,302,309 - Fund Balances: Reserved for other assets - - - Reserved for inventories - - - Reserved for emergency - - 3,100,000 Unreserved: Designated for future year's expenditure - 4,850,000 400,000 Undesignated 353,603 5,069 500,000 Total Fund Balances 353,603 4,855,069 4,000,000 Total Liabilities and Fund Balances $ 353,603 $ 6,157,378 $ 4,000,000 84 Bebee Draw Total Law Nonmajor Public Health Solid Waste Enforcement Governmental Fund Fund Fund Funds $ 1,478,418 $ 1,188,847 $ 242 $ 11,881,198 - - - 1,294,980 - - - 2,310 568,386 142,235 - 710,621 16,255 - - 16,255 330 - - 330 $ 2,063,389 $ 1,331,082 $ 242 $ 13,905,694 $ 56,229 $ 2,458 $ - $ 58,687 196,859 1,032 - 197,891 1,298 716 - 2,014 116,211 - - 1,418,520 370,597 4,206 - 1,677,112 330 - - 330 16,255 - - 16,255 - - - 3,100,000 - - - 5,250,000 1,676,207 1,326,876 242 3,861,997 1,692,792 1,326,876 242 12,228,582 $ 2,063,389 $ 1,331,082 $ 242 $ 13,905,694 85 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, 2005 Conservation Contingent Emergency Trust Fund Fund Fund REVENUES: Taxes: Taxes $ - $ 1,579,192 $ - Intergovernmental 371,213 - - Charges for services - - - Miscellaneous 8,808 - - Total Revenues 380,021 1,579,192 - EXPENDITURES: Current: Public Safety - (1) - Public health and welfare - - - Culture and recreation 333,837 - - Capital outlay - - - Total Expenditures 333,837 (1) - Excess of Revenues Over(Under) Expenditures 46,184 1,579,193 - Other Financing Sources (Uses): Transfers - In - - 500,000 Transfers - Out - 500,000 - Total Other Financing Sources (Uses) - (500,000) 500,000 Net Change in Fund Balances 46,184 1,079,193 500,000 Fund Balances at Beginning of Year 307,419 3,775,876 3,500,000 Fund Balances at End of Year $ 353,603 $ 4,855,069 $ 4,000,000 86 Bebee Draw Total Law Nonmajor Public Health Solid Waste Enforcement Governmental Fund Fund Fund Funds $ - $ - $ 14,551 $ 1,593,743 2,725,722 - - 3,096,935 1,220,978 1,424,354 - 2,645,332 605,197 - - 614,005 4,551,897 1,424,354 14,551 7,950,015 656,461 15,448 671,908 6,677,023 - - 6,677,023 - - - 333,837 80,847 - - 80,847 6,757,870 656,461 15,448 7,763,615 (2,205,973) 767,893 (897) 186,400 2,092,543 - - 2,592,543 707,377 - 1,207,377 2,092,543 (707,377) - 1,385,166 (113,430) 60,516 (897) 1,571,566 1,806,222 1,266,360 1,139 10,657,016 $ 1,692,792 $ 1,326,876 $ 242 $ 12,228,582 87 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, 2005 Budgeted Original Final Actual Variance REVENUES General property taxes $ 4,450,000 $ 4,450,000 $ 4,402,610 $ (47,390) Penalties & interest - - (2,525) (2,525) Total Taxes 4,450,000 4,450,000 4,400,085 (49,915) Grant 500,000 500,000 187,500 (312,500) Fees - - 113,890 113,890 Earnings on deposits 100,000 100,000 116,297 16,297 Total Revenues 5,050,000 5,050,000 4,817,772 (232,228) EXPENDITURES Capital Outlay: Buildings 7,748,793 12,523,793 4,344,048 8,179,745 Total Expenditures 7,748,793 12,523,793 4,344,048 8,179,745 Other Financing Sources (Uses): Transfers - In: General Fund - 4,775,000 4,775,000 - Total Other Financing Sources - 4,775,000 4,775,000 - Net Change in Fund Balance (2,698,793) (2,698,793) 5,248,724 7,947,517 Fund Balance at Beginning of Year 1,816,572 1,816,572 1,816,572 - Fund balance at End of Year $ (882,221) $ (882,221) $ 7,065,296 $ 7,947,517 88 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, 2005 Budgeted Original Final Actual Variance REVENUES Intergovernmental: State lottery $ 385,000 $ 385,000 $ 371,213 $ (13,787) Miscellaneous: Earnings on deposits 14,000 14,000 8,808 (5,192) Total Revenues 399,000 399,000 380,021 (18,979) EXPENDITURES Culture and Recreation: Land improvements 399,000 399,000 333,837 65,163 Total Expenditures 399,000 399,000 333,837 65,163 Net Change in Fund Balance - - 46,184 46,184 Fund Balances at Beginning of Year 307,419 307,419 307,419 - Fund balances at End of Year $ 307,419 $ 307,419 $ 353,603 $ 46,184 89 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, 2005 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes $ 1,600,000 $ 1,600,000 $ 1,581,145 $ (18,855) Penalties & Interest - - (1,953) (1,953) Total Taxes 1,600,000 1,600,000 1,579,192 (20,808) Total Revenues 1,600,000 1,600,000 1,579,192 (20,808) EXPENDITURES Miscellaneous 5,350,000 4,850,000 (1) 4,850,001 Total Expenditures 5,350,000 4,850,000 (1) 4,850,001 Other Financing sources (Uses): Transfers -Out: Other - 500,000 500,000 - Total Other Financing (Uses) - (500,000) (500,000) - Net Change in Fund Balance (3,750,000) (3,750,000) 1,079,193 4,829,193 Fund Balances at Beginning of Year 3,775,876 3,775,876 3,775,876 - Fund Balances at End of Year $ 25,876 $ 25,876 $ 4,855,069 $ 4,829,193 90 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, 2005 Budgeted Original Final Actual Variance REVENUES Taxes: Total Revenues - - - - EXPENDITURES 3,500,000 4,000,000 - 4,000,000 Other Financing Sources (Uses): Transfers - In: Non-Departmental - (500,000) (500,000) - Total Other Financing Sources (Uses) - 500,000 500,000 - Net Change in Fund Balance (3,500,000) (3,500,000) 500,000 4,000,000 Fund Balances at Beginning of Year 3,500,000 3,500,000 3,500,000 - Fund Balances at End of Year $ - $ - $ 4,000,000 $ 4,000,000 91 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, 2005 Budgeted Original Final Actual Variance REVENUES Intergovernmental: State grants $ 2,342,187 $ 2,621,323 $ 2,715,174 $ 93,851 Federal grants - - 3,868 3,868 Counties 2,385,166 - 6,680 6,680 Total Intergovernmental 4,727,353 2,621,323 2,725,722 104,399 Charges for Services: Charges for services 1,215,773 1,186,331 1,220,978 34,647 Total Charges for Services 1,215,773 1,186,331 1,220,978 34,647 Miscellaneous: Other 14,000 - 578,482 578,482 Donations - 14,600 26,715 12,115 Total Miscellaneous 14,000 14,600 605,197 590,597 Total Revenues 5,957,126 3,822,254 4,551,897 729,643 EXPENDITURES Public Health and Welfare: Public health administration 142,000 162,007 167,033 (5,026) Health education 381,910 1,179,952 1,026,435 153,517 Nursing 4,161,069 3,434,562 2,931,628 502,934 Environmental health 1,980,549 2,230,848 2,551,927 (321,079) Total Public Health and Welfare 6,665,528 7,007,369 6,677,023 330,346 Capital Outlay: Nursing 5,540 1,367 3,167 (1,800) Environmental health - 6,000 77,680 (71,680) Total Capital Outlay 5,540 7,367 80,847 (73,480) Total Expenditures 6,671,068 7,014,736 6,757,870 256,866 Other Financing Sources(Uses): Transfers- In: Non Departmental 707,377 2,092,543 2,092,543 - Total Other Financing Sources 707,377 2,092,543 2,092,543 - Net Change in Fund Balance (6,565) (1,099,939) (113,430) 986,509 Fund Balances at Beginning of Year 1,806,222 1,806,222 1,806,222 - Fund Balance at End of Year $ 1,799,657 $ 706,283 $ 1,692,792 $ 986,509 92 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, 2005 Budgeted Original Final Actual Variance REVENUES Landfill surcharge $ 1,300,000 $ 1,300,000 $ 1,424,354 $ 124,354 Total Revenues 1,300,000 1,300,000 1,424,354 124,354 EXPENDITURES Miscellaneous: Solid waste 527,651 527,651 611,615 (83,964) Code enforcement 64,972 64,972 44,846 20,126 Total Miscellaneous 592,623 592,623 656,461 (63,838) Capital Outlay: Code enforcement - - - - Total Expenditures 592,623 592,623 656,461 (63,838) 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 - - 60,516 60,516 Fund Balances at Beginning of Year 1,266,360 1,266,360 1,266,360 - Fund Balances at End of Year $ 1,266,360 $ 1,266,360 $ 1,326,876 $ 60,516 93 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, 2005 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes $ 13,522 $ 13,522 $ 13,041 $ (481) Specific ownership taxes 1,200 1,200 1,500 300 Penalties & Interest - - 10 10 Total Revenues 14,722 14,722 14,551 (171) EXPENDITURES Miscellaneous 14,722 14,722 15,448 (726) Total Expenditures 14,722 14,722 15,448 (726) Net Change in Fund Balance - - (897) (897) Fund Balances at Beginning of Year 1,139 1,139 1,139 - Fund Balances at End of Year $ 1,139 $ 1,139 $ 242 $ (897) 94 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, 2005 Budgeted Original Final Actual Variance REVENUES Intergovernmental: Federal Grants $ - $ - $ 30,000 $ 30,000 State Grants 2,500,000 2,500,000 2,739,561 239,561 Total Intergovernmental 2,500,000 2,500,000 2,769,561 269,561 Miscellaneous: Earnings on deposits - - 21,543 21,543 Miscellaneous 239,180 239,180 181,411 (57,769) Total Miscellaneous 239,180 239,180 202,954 (36,226) Total Revenues 2,739,180 2,739,180 2,972,515 233,335 EXPENDITURES Rent assistance 2,500,000 2,500,000 2,544,052 (44,052) Supplies 234,859 234,859 299,637 (64,778) Depreciation 1,500 1,500 1,556 (56) Total Expenditures 2,736,359 2,736,359 2,845,245 (108,886) Net Change in Fund Balance 2,821 2,821 127,270 124,449 Fund Balances at Beginning of Year 1,755,692 1,755,692 1,755,692 - Fund Balances at End of Year $ 1,758,513 $ 1,758,513 $ 1,882,962 $ 124,449 95 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, 2005 Budgeted Original Final Actual Variance REVENUES Miscellaneous: Earnings on deposits 45,000 45,000 55,596 10,596 Charge for service 1,290,526 1,290,526 1,296,215 5,689 Total Revenue 1,335,526 1,335,526 1,351,811 16,285 EXPENDITURES Depreciation 170,000 170,000 100,390 69,610 Purchased services 588,000 588,000 561,032 26,968 Supplies 10,000 10,000 12,117 (2,117) Grants and donations 250,000 250,000 249,999 1 Total Expenditures 1,018,000 1,018,000 923,538 94,462 Net Change in Fund Balance 317,526 317,526 428,273 110,747 Fund Balances at Beginning of Year 2,545,634 2,545,634 2,545,634 - Fund Balances at End of Year $ 2,863,160 $ 2,863,160 $ 2,973,907 $ 110,747 96 Wilk COLORADO 97 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form#350-050-36 City or County: Weld LOCAL HIGHWAY FINANCE REPORT YEAR ENDING : December 2005 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 I. 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 highway purposes 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: 1. Local highway-user taxes 1. Capital outlay(from page 2) 8,220,772 a. Motor Fuel (from e Item Item I.B. 2. MaRoad and street services: c. Total (a.+b.) a. Traffic control operations 2. General fund appropriations b. Snow and ice removal 641,423 3. Other local imposts(from page 2) 12,570,929 c. Other 229,626 4. Miscellaneous local receipts(from page 2) 3,525,079 d. Total (a.through c.) 871,049 5. Transfers from toll facilities 4. General administration&miscellaneous 2,789,035 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds-Original Issues 6. Total (1 through 5) 24,096,986 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) 16,096,008 b. Redemption B. Private Contributions c. Total a.+b. 0 C. Receipts from State government 2. Notes: (from page 2) 9,431,961 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) 333,126 c. Total (a.+b.) 0 E. Total rem its(A.7+B+C+D) 25,861,095 3. Total (1.c+2.c) 0 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements(A.6+B.3+C+D) 24,096,986 IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) Opening Debt Amount Issued Redemptions Closing Debt A. Bonds(Total) 0 1. Bonds(Refunding Portion) otes Tota V. LOCAL ROAD AND STREET FUND BALANCE A. Beginning Balance B.Total Receipts C.Total Disbursements D. Ending Balance E. Reconciliation 14,001,284 25,861,095 24,096,986 15,765,393 0 Notes and Comments: FORM FHWA-536(Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 98 STATE: Colorado LOCAL HIGHWAY FINANCE REPORT YEAR ENDING(mm/yy): December 2005 II. RECEIPTS FOR ROAD AND STREET PURPOSES-DETAIL ITEM AMOUNT ITEM AMOUNT A.3. Other local imposts: A.4. M •II. . i I. :I .t . a. Property Taxes and Assessments 5,944,438 a. Interest on investments 104,172 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 1,624,951 5. Specific Ownership&/or Other 6,626,491 g. Other Misc. Receipts 1,230,845 6. Total (l. through 5.) 6,626,491 h. Other 565,111 c. Total a.+b. 12,570,929 i. Total a.throu•h h. 3,525,079 (Ca forward to.a-e I) (Ca forward to .a a I) ITEM AMOUNT ITEM AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Hi_hwa -user taxes 7,713,466 . ' r A rom tern .1. . IIIMII 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 81,564 a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 338,340 d. Federal Transit Admin d. Other (Specify)Grants 1,380,155 e. U.S. Corps of Engineers e. Other(Specify) f Other Federal 251,562 f Total (a.through e.) 1,718,495 g. Total (a.through f.) 333,126 4. Total 1.+2.+3. 9,431,961 3. Total 1.+2._ (Carry forward to page I) III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES-DETAIL ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM a b c A.1. Capital outlay: a. Right-Of-Way Costs 74,451 74,451 b. Engineering Costs 1,036,096 1,036,096 c. Construction: (1).New Facilities 6,446,147 6,446,147 (2). Capacity Improvements 664,078 664,078 (3). System Preservation 0 (4). System Enhancement&Operation 0 (5). Total Construction (I)+(2)+(3)+(4) 0 7,110,225 7,110,225 d. Total Ca ital Outla Lines l.a.+ 1.6.+ I.c S 0 8,220,772 8,220 772 (Carry forward to page I) Notes and Comments: FORM FHWA-536(Rev.1-05) PREVIOUS EDITIONS OBSOLETE 99 COUNTY OF WELD STATE OF COLORADO Combining Statement of Net Assets Internal Service Funds December 31, 2005 Motor Vehicle Health Fund Insurance Fund Insurance Fund ASSETS Current Assets: Cash and cash equivalents $ 688,155 $ 3,237,936 $ 1,105,822 Receivables (net of allowances for uncollectables): Current property taxes - - 996,113 Delinquent property taxes - - 861 Accounts 385,718 - - Due from other county funds 180,056 4,845 4,780 Inventories 42,107 - - Other assets 1,851 - 2,220 Total current assets 1,297,887 3,242,781 2,109,796 Fixed assets: Improvements other than buildings 485,897 - - Buildings 1,800,977 - - Machinery and equipment 24,508,257 - - Accumulated depreciation (15,485,425) - - Total Fixed Assets 11,309,706 - - Total assets $ 12,607,593 $ 3,242,781 $ 2,109,796 LIABILITIES AND NET ASSETS Current Liabilities: Accounts payable $ 824,056 $ 5,343 $ 128,138 Accrued liabilities - - 790,374 Due to other county funds 9,848 - - Unearned revenue - - 1,000,861 Unexpended grant revenue - 574,764 - Current portion of long-term debt - - - Total Current Liabilities 833,904 580,107 1,919,373 Long-term liabilities: Certificates of participation - - - Total Long-term Liabilities - - - Total Liabilities 833,904 580,107 1,919,373 Net Assets Invested in capital assets, net of related debt 11,309,706 - - Restricted for: Workers' compensation - - 190,423 Unrestricted 463,983 2,662,674 - Total net assets 11,773,689 2,662,674 190,423 100 Phone Services Weld Finance Total Internal Fund Corporation Service Funds $ 1,406,427 $ 852 $ 6,439,192 - - 996,113 - 861 2,612 - 388,330 19,754 - 209,435 42,107 - 4,071 1,428,793 852 8,080,109 - 485,897 7,175,000 8,975,977 1,175,725 - 25,683,982 (1,040,498) (1,933,264) (18,459,187) 135,227 5,241,736 16,686,669 $ 1,564,020 $ 5,242,588 $ 24,766,778 $ 1,839 $ - $ 959,376 12,680 - 803,054 - 9,848 - 1,000,861 - - 574,764 420,000 420,000 14,519 420,000 3,767,903 5,571,894 5,571,894 5,571,894 5,571,894 14,519 5,991,894 9,339,797 135,227 (750,158) 10,694,775 - - 190,423 1,414,274 852 4,541,783 1,549,501 (749,306) 15,426,981 101 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, 2005 Motor Vehicle Health Fund Insurance Fund Insurance Fund Operating revenues: Contributions $ - $ 6,695,804 $ - Charges for services 5,668,113 - 244,194 Total operating revenues 5,668,113 6,695,804 244,194 Operating expenses: Personnel services - - - Supplies 1,683,536 - 3,140 Purchased services 1,983,619 28,808 79,503 Insurance and bonds - - 467,161 Depreciation 2,093,967 - - Other 78,704 - 348 Claims - 4,966,932 930,569 Total operating expenses 5,839,826 4,995,740 1,480,721 Operating income (loss) (171,713) 1,700,064 (1,236,527) Nonoperating revenues (expenses): Taxes - - 742,622 Miscellaneous 140,568 - - Interest income - - 33,103 State Grant 150,000 - - Gain (loss) on disposition of assets 127,999 - - Judgements and damages - - 34,447 Interest expense - - - Total nonoperating revenues (expenses) 418,567 - 810,172 Income (loss) before contributions and transfers 246,854 1,700,064 (426,355) Capital contributions 17,850 - - Changes in net assets 264,704 1,700,064 (426,355) Total net assets - beginning 11,508,985 962,610 616,778 Total net assets - ending $ 11,773,689 $2,662,674 $ 190,423 102 Phone Services Weld Finance Total Internal Fund Corporation Service Funds $ - $ - $ 6,695,804 1,057,335 - 6,969,642 1,057,335 - 13,665,446 121,045 - 121,045 29,304 1,644 1,717,624 623,033 108 2,715,071 - - 467,161 64,198 239,167 2,397,332 65,068 - 144,120 - - 5,897,501 902,648 240,919 13,459,854 154,687 (240,919) 205,592 - - 742,622 - 740,411 880,979 - 1,192 34,295 - - 150,000 - - 127,999 - - 34,447 - (341,893) (341,893) - 399,710 1,628,449 154,687 158,791 1,834,041 (6,144) - 11,706 148,543 158,791 1,845,747 1,400,958 (908,097) 13,581,234 $ 1,549,501 $ (749,306) $ 15,426,981 103 COUNTY OF WELD STATE OF COLORADO Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended December 31,2005 Motor Vehicle Health Insurance Insurance Fund Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers $ 493,336 $ - $ 35,912 Cash flows from intemal customers 5,180,478 6,740,683 389,698 Cash payments to external suppliers for goods and services (3,004,885) (4,823,430) (1,330,654) Cash payments to internal suppliers for goods and services (94,290) (34) (109) Cash payments to employees for services - (175,826) - Miscellaneous revenues 2.750 -Net cash provided(used)by operating activities 2,577,389 1,741,393 (905,153) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes - - 742,622 Judgements/damages/losses - - 34,447 Miscellaneous - -Net cash provided by noncapital financing activities - - 777.069 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (3,015,036) - - Principal paid on long-term debt - - - Interest paid - - - Proceeds from sale of capital assets 122,775 - - Grants 150.000 -Net cash provided(used)for capital and related financing activities (2.742,261) - - CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments - - 33,103 Net Increase(decrease)in Cash and Cash Equivalents (164,872) 1,741,393 (94,981) Cash and Cash Equivalents at Beginning of Year 853,027 1.496,543 1.200.803 Cash and Cash Equivalents at End of Year $ 688 155 $ 3 237 936 $ 1 105 822 Reconciliation of operating income to net cash provided(used)by operating activities: Operating income $ (171,713) $ 1,700,064 $ (1,236,527) Adjustments to reconcile operating income to net cash provided(used)by operating activities: Depreciation expense 2,093,967 Miscellaneous revenue 2,750 Change in assets and liabilities Increase)decrease in accounts receivable (4,020) 7.461 (230,425) Increase)decrease in due from other funds 180,168 (2,034) 31,807 Increase)decrease in inventories (12,780) Increase)decrease in other assets (88) 60,463 ncrease(decrease)in accounts payable 500,404 93 123,252 ncrease(decrease)in accrued liabilities 115,874 ncrease(decrease)in other liabilities (11,298) (1,000) ncrease(decrease)in deferred revenue - 35,809 231.403 Total adjustments 2,749.103 41.329 331.374 Net cash provided by operating activities $ 2 577 390 $ 1 741 343 $ (905 1531 Noncash investing,capital,and financing activities: Contributions of capital assets from(to)government $ 17,850 Capital asset trade-ins $ 63,777 104 Phone Service Weld Finance Total Internal Fund Corp Service Funds $ 128,826 $ - $ 658,074 954,538 13,265,397 (626,966) (1,752) (9,787,687) (126,807) - (221,240) (116,476) - (292,302) 2,750 213,115 (1,752) 3.624.992 742,622 34,447 400.000 400,000 400,000 1,177,069 (73,574) (3,088,610) (398,355) (398,355) (341,893) (341,893) 122,775 150,000 (73,574) (740,248) (3.556.083) 341,603 374,706 139,541 (397) 1,620,684 1,266,885 1,249 4,818,507 $ 1 406 475 $ 852 S 6 439 191 $ 154,687 $ (240,919) $ 205,592 64,198 239,167 2,397,332 2,750 8,783 (218,201) 153 210,094 (12,780) 60,375 (15,013) 608,736 318 116,192 (11) (12,309) 267,212 58,428 239.167 3,419,401 $ 213 115 $ (1 752) $ 3 624 993 $ (6,144) 11,706 63,777 105 COUNTY OF WELD STATE OF COLORADO Combining Statement of Changes in Assets and Liabilities Fiduciary Funds For the fiscal year ended December 31, 2005 Balance Balance 1/1/2005 Additions Deductions 12/31/2005 GENERAL AGENCY FUND Assets: Cash and short-term investments $ 3,649,265 $ 4,980,581 $ 3,565,183 $ 5,064,663 Total Assets $ 3,649,265 $ 4,980,581 $ 3,565,183 $ 5,064,663 Liabilities: Accounts payable $ - $ 236,896 $ 50,570 $ 186,326 Due to other governments 3,649,265 4,878,337 3,649,265 4,878,337 Total Liabilities $ 3,649,265 $ 5,115,233 $ 3,699,835 $ 5,064,663 PAYROLL AGENCY FUND Assets: Cash and short-term investments $ 79,044 $ 15,498,774 $ 15,494,955 $ 82,863 Accounts receivable 188 632 776 44 Total Assets $ 79,232 $ 15,499,406 $ 15,495,731 $ 82,907 Liabilities: Accounts payable $ 79,232 $ 16,685,880 $ 16,682,205 82,907 Total Liabilities $ 79,232 $ 16,685,880 $ 16,682,205 $ 82,907 EMPLOYEE FLEXIBLE SPENDING Assets: Cash and short-term investments $ 11,817 $ 459,607 $ 451,333 $ 20,091 Accounts receivable - - - - Total Assets $ 11,817 $ 459,607 $ 451,333 $ 20,091 Liabilities: Accounts payable $ 11,817 $ 21,086 $ 12,812 20,091 Total Liabilities $ 11,817 $ 21,086 $ 12,812 $ 20,091 TOTAL -ALL AGENCY FUNDS Assets: Cash and short-term investments $ 3,740,126 $ 20,938,962 $ 19,511,471 $ 5,167,617 Accounts receivable 188 632 776 44 Total Assets $ 3,740,314 $ 20,939,594 $ 19,512,247 $ 5,167,661 Liabilities: Accounts payable $ 91,049 $ 16,943,862 $ 16,745,587 $ 289,324 Due to other governments 3,649,265 4,878,337 $ 3,649,265 4,878,337 Total Liabilities $ 3,740,314 $ 21,822,199 $ 20,394,852 $ 5,167,661 106 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, 2005 Budgeted Original Final Actual Variance Operating Revenues: Rescue unit fees $ 8,865,667 $ 8,865,667 $ 7,728,736 $ (1,136,931) Total Operating Revenues 8,865,667 8,865,667 7,728,736 (1,136,931) Operating Expenses: Bad debt expense 4,729,511 4,729,511 2,137,859 2,591,652 Personnel services 3,085,635 3,085,635 3,135,542 (49,907) Supplies 238,648 238,648 234,819 3,829 Purchased services 391,849 391,849 674,134 (282,285) Depreciation 193,524 193,524 182,419 11,105 Other 77,500 77,500 77,897 (397) Total Operating Expenses 8,716,667 8,716,667 6,442,670 2,273,997 Operating Income (Loss) 149,000 149,000 1,286,066 1,137,066 Nonoperating Revenues: State grants - - 85,576 85,576 Fees - - 11,127 11,127 Donations - - 2,100 2,100 Other - - 2,175 2,175 Gain (loss) on disposition of assets - - (3,770) (3,770) Total Nonoperating Revenues - - 97,208 97,208 Income(loss) before contributions and transfers 149,000 149,000 1,383,274 1,234,274 Capital contributions - - (5,325) (5,325) Net Income (Loss) 149,000 149,000 1,377,949 1,228,949 Net Assets at Beginning of Year 747,941 747,941 747,941 - Net Assets at end of Year $ 896,941 $ 896,941 $ 2,125,890 $ 1,228,949 107 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, 2005 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 3,326,333 $ 3,646,333 $ 3,574,036 $ (72,297) Miscellaneous 2,060,773 2,060,773 2,094,077 33,304 Total Operating Revenues 5,387,106 5,707,106 5,668,113 (38,993) Operating Expenses: Supplies 1,377,308 1,577,308 1,683,536 (106,228) Purchased services 1,795,721 1,995,721 1,983,619 12,102 Depreciation 2,060,773 2,060,773 2,093,967 (33,194) Other 78,704 78,704 78,704 - Total Operating Expenses 5,312,506 5,712,506 5,839,826 (127,320) Operating income (loss) 74,600 (5,400) (171,713) (166,313) Nonoperating Revenues (Expenses): Miscellaneous - - 140,568 140,568 State Grant 150,500 1,650,500 150,000 (1,500,500) Gain (loss)on disposition of assets 251,800 251,800 127,999 (123,801) Total Nonoperating Revenues(Expenses) 402,300 1,902,300 418,567 (1,483,733) Income(Loss) before contributions and transfers 476,900 1,896,900 246,854 (1,650,046) Capital contributions - - 17,850 17,850 Net Income (Loss) 476,900 1,896,900 264,704 (1,632,196) Net Assets at Beginning of Year 11,508,985 11,508,985 11,508,985 Net Assets at End of Year $ 11,985,885 $ 13,405,885 $ 11,773,689 $ (1,632,196) 108 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, 2005 Budgeted Original Final Actual Variance Operating Revenues: Contributions $ 8,279,724 $ 8,279,724 $ 6,695,804 $ (1,583,920) Operating Expenses: Purchased services 5,000 5,000 28,808 (23,808) Insurance and bonds 926,604 926,604 - 926,604 Claims 7,348,120 7,348,120 4,966,932 2,381,188 Total Operating Expenses 8,279,724 8,279,724 4,995,740 3,283,984 Operating Income (Loss) - - 1,700,064 1,700,064 Net Assets at Beginning of Year 962,610 962,610 962,610 - Net Assets at End of Year $ 962,610 $ 962,610 $ 2,662,674 $ 1,700,064 109 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, 2005 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 240,000 $ 240,000 $ 244,194 $ 4,194 Operating Expenses: Supplies 700 700 3,140 (2,440) Purchased services 27,600 27,600 79,503 (51,903) Insurance and bonds 309,000 309,000 467,161 (158,161) Other 500 500 348 152 Claims 960,000 960,000 930,569 29,431 Total Operating Expenses 1,297,800 1,297,800 1,480,721 (182,921) Operating Income (Loss) (1,057,800) (1,057,800) (1,236,527) (178,727) Nonoperating Revenues (Expenses): Taxes 750,000 750,000 742,911 (7,089) Penalties & interest - - (289) (289) Interest income 50,000 50,000 33,103 (16,897) Judgments and damages 100,000 100,000 34,447 (65,553) Total Nonoperating Revenues (Expenses) 900,000 900,000 810,172 (89,828) Net Income (Loss) (157,800) (157,800) (426,355) (268,555) Net Assets at Beginning of Year 616,778 616,778 616,778 - Net Assets at End of Year $ 458,978 $ 458,978 $ 190,423 $ (268,555) 110 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, 2005 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 860,000 $ 1,060,000 $ 1,057,335 $ (2,665) Operating Expenses: Personnel services 117,883 117,883 121,045 (3,162) Supplies 12,000 32,000 29,304 2,696 Purchased services 620,549 720,549 623,033 97,516 Depreciation 44,500 44,500 64,198 (19,698) Other 65,068 65,068 65,068 - Total Operating Expenses 860,000 980,000 902,648 77,352 Operating Income (Loss) - 80,000 154,687 74,687 Capital contributions and transfers Capital contributions - - (6,144) (6,144) Net Income (Loss) - 80,000 148,543 68,543 Net Assets at Beginning of Year 1,400,958 1,400,958 1,400,958 Net Assets at End of Year $ 1,400,958 $ 1,480,958 $ 1,549,501 $ 68,543 111 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, 2005 Budgeted Original Final Actual Variance Operating Revenues: Operating Expenses: Supplies - - 1,644 (1,644) Purchased services - - 108 (108) Depreciation 400,000 400,000 239,167 160,833 Total Operating Expenses 400,000 400,000 240,919 159,081 Operating Income (Loss) (400,000) (400,000) (240,919) 159,081 Nonoperating Revenues (Expenses): Miscellaneous 741,893 741,893 740,411 (1,482) Interest income - - 1,192 1,192 Interest expense (341,893) (341,893) (341,893) - Total Nonoperating Revenues(Expenses) 400,000 400,000 399,710 (290) Net Income (Loss) - - 158,791 158,791 Net Assets at Beginning of Year (908,097) (908,097) (908,097) - Net Assets at End of Year $ (908,097) $ (908,097) $ (749,306) $ 158,791 112 STATISTICAL x= z V3� I Li SECTION ' CfiGITI Wilk 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 114 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 119 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 123 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 126 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 128 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. 113 COUNTY OF WELD STATE OF COLORADO Net Assets by Component Last Four Years (accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 Governmental activities Invested in capital assets, net of related debt $ 253,141,316 $ 247,764,877 $ 238,640,911 $ 231,271,356 Restricted for Programs 3,307,949 3,169,309 4,199,374 4,695,690 Emergencies 3,025,505 3,025,505 3,500,000 4,000,000 Claims 1,663,948 1,748,948 1,748,949 1,748,950 Unrestricted 27,713273 26,511,213 30.759,296 39,782,093 Total governmental activities net assets $ 288 851 991 $ 282.219$52 $ 278348 530 $ 281 498 089 Business-type activities Invested in capital assets, net of related debt $ 941,049 $ 834,285 $ 864,425 $ 809,643 Unrestricted (86,0861 (266,7361 (4,7611 1,508,322 Total business-type activities net assets $544.963 $ 567 549 $ 859 664 $ 2.317 96Th Primary government Invested in capital assets, net of related debt $ 254,082,365 $ 248,599,162 $ 239,505,336 $ 232,080,999 Restricted 7,997,402 7,943,762 9,448,323 10,444,640 Unrestricted 27,627,187 26,244,477 30,754,535 41,290,415 Total primary government net assets L2-6.9 706 954 $ 282 787 401 $ 279 708 194 $.. .83218,..054 Note: The County implemented GASB Statement No. 34 in fiscal year 2002,therefore,only four years of government-wide financial data is presented. 114 COUNTY OF WELD STATE OF COLORADO Changes in Net Assets Last Four Years (accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 Expenses Governmental activities: General government $ 19,978,184 $ 23,618,753 $ 21,174,906 $ 23,047,725 Public safety 24,079,553 27,827,685 28,425,957 30,449,441 Streets and highways 34,283,421 33,353,129 32,688,807 36,919,372 Health and welfare 21,721,740 21,404,255 23,538,421 24,843,147 Culture and recreation 1,036,099 776,322 1,005,697 771,295 Economic assistance 11,079,949 11,411,322 12,646,785 13,736,745 Interest on long-term debt 406,155 377,233 358,054 340,411 Total governmental activities expenses 112,585,101 118,768,699 119.838,627 130,108,136 Business-type activities: Paramedic service 6,743.936 8,800,646 9,738,148 6,366,088 Total primary government expenses $ 119 329.037 $ 127 569 345 $ 129 576 775 $ 136 474 224 Program Revenues Governmental activities: Charges for services: General government $ 9,425,679 $ 8,677,015 $ 8,086,983 $ 9,792,423 Public Safety 3,894,565 5,085,767 7,609,527 5,430,422 Streets and highways 2,021,319 2,279,939 1,157,634 3,433,713 Health and welfare 13,664,895 11,486,561 12,699,858 13,664,206 Culture and recreation 266,900 1,375 309,948 333,293 Economic assistance 922,549 1,576,106 862,223 1,156,012 Operating grants and contributions 26,156,456 25,963,243 27,124,685 27,885,047 Capital grants and contributions - - - - Total governmental activities program revenues 56,352,363 55,070,006 57,850,858 61,695,116 Business-type activities: Paramedic service 6,815,683 8,518,289 10,035,874 7,829.714 Total primary government revenues 63,168,046 63,588,295 67,886,732 69.524,830 Net(Expenses)/Revenue Governmental activities (56,232,738) (63,698,693) (61,987,769) (68,413,020) Business-type activities 71,747 (282,357) 297,726 1,458,301 Total primary government net $ (56 160 991) $ (63.981.050) $ (61 690 041j $ (66.954 719) (CONTINUED) 115 COUNTY OF WELD STATE OF COLORADO Changes in Net Assets Last Four Years (accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 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 Specific Ownership 5,467,148 5,540,872 6,795,897 6,627,991 Other 2,376,581 2,492,418 3,333,336 3,733,025 Grants and contributions not restricted to specific programs - - - - Unrestrictedinvestmentearnings 2,052,594 1,563,120 1,644,979 2,679,442 Donated capital assets 0 0 0 355,784 Gain on sale of capital assets 10,030 (94,544) (2,358,185) - Total governmental activities 55,139,899 57.034.468 60,201,946 69,778,775 Business-type activities: Paramedic service - (5,057) (5,611) - Total primary government $ 55 119 899 $ 57 029 411, $ 60 196 335 $ 69 778 77$ Change In Net Assets Governmental activities $ (1,092,839) $ (6,664,225) $ (1,785,823) $ 1,365,755 Business-type activities 71,747 (287.414) 292,115 1,458,301 Total primary government $ (1 021.092) R (6 951 639) $ (1 493.708) $ 2 824 0561 116 COUNTY OF WELD STATE OF COLORADO Fund Balances of Governmental Funds Last Four Years (modified accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 General Fund Reserved $ 3,249297 $ 1,342,369 $ 1,516,298 $ 1,486,188 Unreserved 2,921,157 3,727,307 6,699,941 7,648,920 Total general fund $ S,]70 454 $ 5 069 676 $ $215.239 $ 9 135 105 All other Governmental Funds Reserved $ 6,984,908 $ 2,666,118 $ 4,139,435 $ 8,834,511 Unreserved, reported in: Special revenue funds 19,512,384 22,023,076 25,360,820 26,155,751 Capital projects funds 294,482 2,830,614 697,779 3,511,495 Debt service funds - - - - Total for all governmental funds $ 32 962 22E} $ 32,5$_9 4$4 $ 38 414.271 $ 47 636.865 117 COUNTY OF WELD STATE OF COLORADO Changes in Fund Balances,Governmental Funds Last Four Years (modified accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 Revenues Taxes $ 50,771,861 $ 53,080,974 $ 57,698,294 $ 63,261,095 Licenses and permits 2,205,420 1,760,546 1,834,849 2,119,419 Intergovernmental 40,511,590 38,299,161 40,652,682 41,110,202 Fines and forfeitures 159,246 75,488 69,538 204,530 Charges for Services 5,746,678 6,887,469 7,345,819 8,618,819 Miscellaneous 5,536,066 4,739,386 5,329,931 7,582,510 Fees 6,638,831 7,387,204 7,454,831 8,175,907 Total Revenues 111,569,692 112,230,228 120.385.944 131,072,482 Expenditures Current: General government 19,100,208 21,910,296 20,566,315 22,384,671 Public Safety 23,435,572 27,212,371 27,475,345 29,834,629 Public Works 23,465,325 21,407,821 22,734,695 25,490,667 Public health and welfare 21,327,335 20,896,282 23,046,109 24,284,817 Culture and recreation 1,046,374 764,449 1,007,208 775,903 Economic assistance 10,892,932 11,365,585 12,450,198 13,572,861 Capital outlay 9,590,948 8,668,934 6,923,230 5,165,931 Debt service Interest 406,155 377,233 358,054 340,411 Principal - - - - Total Expenditures 109,264,849 112,602,971 114.561,154 121,849,890 Excess of revenues over(under)expenditures 2,304,843 (372.743) 5,824,790 9,222,592 Other Financing Sources(Uses) Transfers-in 5,144,682 2,482,745 4,299,153 7,436,144 Transfers-out 5,144.682 2,482,745 4,299,153 7,436.144 Total Other Financing Sources(Uses) - - - - Net changes in Fund Balance $ 2 304 843 $ (372 743) $ 5.824.79Q $ 9 222592 Debt Service as a percentage of noncapital expenditures 0.41% 0.36% 0.33% 0.29% 118 O 0 « o al a c c c e c c e e c • N > o 0 N O) W a1 N , L. 000 ,,, , 0 l0 0 N M CCn COr 0 J C - 0 m , m N !` M O r m t ` J m m r m m m m m a > hi U 0 0 0 0 m m m m V r N N V V V V M M m N N N 2 O o 0 0 0 0 m 0 V m OW N N N N N N 0 G Oi ▪ N N N N N N N N N N O H H y OTt O m of m M m r � O V 3 .O v m m 0 M m C0 to T:: O Cn v C9 o M CN9 o m en y O A > (o m M m V l0 y m M foO o Ol M m n 0 (P N O 10 H ¢ X r N m N N N m N T W F n ai of of N N Ln (C of n E v to a) N- 000000000 ` co J- mmo_ rorNmoe � E E Oy U) N (Q 10 M M m L o "' tco a m (m0_ r Om) m O r V a M N 0 o H y m m M 1(i N N r h t+l N m to m N r m M m N N m 0 A A y cox,- 10 m r ex .,- V m co M N 0 m r r r r r r N N N N CS 0 0 "' r Q N = d C 0 0 0 0 0 0 0 0 0 0 j 2 -0 00000L00000 (O O a 0 N V m O m m N m O 10 OI m d N N N m N N M m MR RN• L0 s y M m m O 'C m - V m D J a N m O m m r M r r N N O O m m m m V O m O M V 10 M N o Y N m r m m O 10 m m O H N N N N V 0 0 0000000000 0 =; 0 O m r 0 m N m V m N 0 0 mn V V V mNMO C O O 9 C) M m^ V O co mO (D M m m J n6 W d' > ._ ad r e (n r r N m V m r ra m M M M M m V i mp m m m LL O m J } Q N M M N M m ((O LO O) N 0 0 O 0 0 a r O00 H LL 0 H m 0- - .4,0m0 .0 .4-4- O N Z 0 0 N o 8 V e Vr r N N N VN V O H E - > > o m m r 0 (0m r m o ai O• Q N to O V m M O w N m r M y V H AI— z , M M m m h r m O m 0 m m 9 d 0 C m N M O 0 �0�{ 0 0 0 0 0 W N J a) j N m N (0 m m O m o Omi mc U a)0 n > > m V r m c0 r Or) mr ao O) p 0 V V V r O m V V tD N m m O 0 M V O my M m M m N no wo Q M V V m (0 N N N m r T co St 0 0000000000 CO a) m r N N r N r m (VO N m o 0 Q W > ap M r (0 m W O N N r r 0_ 'm N n m (n N m m V V N 0 O m N r O) r N N p C C a C 'V l0 n m ni m m m N > 0 0000000000 LLoo a N m r V r N V r m N 4 2 N r r V 10 m 10 M V O (a o o N M a)r O M V N m at E a (NNn m ,- O N m V M L . m 0 N 9 EO a m m O O V m m m m r 0 C m M in m V r N V O O 0 y o N N N N M M M V V m a m m O 00000 (00000on Q j T Lon m m r co N m m N C C m r m V O N N m N O 1 C O 0 10 M m m 0 N o (D j 422 a pm n n cO (fl n n N V N U .•0 T to o d t7 In 01 l(1 O R m O N .O to -- CO (miaeeLimnnmm 3 d o to 00 0 0 0 0 N 0 0 0 0 0 E d O N m N O V m m M m 0 M L 07: a o NI V V M r (r0 (0 N Cm') m 0 0 Ow o. O J COrNm (0nmmm0 () 2E E > N N M M V m m m O N 0 r 0 HO S T (o r m 0 O N M V (0 yj m m m m O O O 0 O O U > 0 m m m 0 0 0 0 0 0 0 ai O 0 N N N N N N OJ O co Z 119 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 County Greeley District 6 College Library 1996 22.040 11.274 45.455 6.320 1.500 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 The basis for the property tax rates is per$1,000 assessed valuation. Source: Office of the Weld County Assessor. 120 COUNTY OF WELD STATE OF COLORADO Principal Property Taxpayers 2005 1996 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 $ 440,188,500 1 12.18% Patina Oil&Gas Corporation 398,688,580 2 11.03% Encana Oil&Gas(USA)Inc 128,268,320 3 3.55% Public Service Company of Colorado(Xcel) 102,537,900 4 2.84% $ 44,782,500 2 3.37% Rocky Mountain Enery Center 97,893,000 5 2.71% Petroleum Development Corp 58,548,890 6 1.62% Petro-Canada Resources(USA)Inc 53,642,060 7 1.48% Merit Energy 52,813,030 8 1.46% Eastman Kodak Company 35,866,990 9 0.99% 68,984,090 1 5.19% Duke Energy Field Services Inc 34,357,980 10 0.95% Thermo Cogeneration Partnership 33,657,400 3 2.53% US West Communications Incorporated 16,860,800 4 1.27% R R Donnelley Norwest Incorporated 6,633,410 5 0.50% McLane Western Incorporated 5,126,390 6 0.39% Macerich Greeley Association 5,107,340 7 0.38% Metal Containers Corporation 4,968,460 8 0.37% Golden Aluminum Company 4,957,290 9 0.37% Monfort Packing/Conagra 4,938,990 10 0.37% $ 1,402,805,250 38.81% $ 196,016,670 14.74% 121 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 Collect for the Tax Percent in Subsequent Tax Percent Year Year Fiscal Year(1) Amount(2) of Levy Years 3 Amount(3) of Levy 1995 1996 29,618,111 29,460,936 99.469% 19 29,460,955 99.469% 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% 53,690 38,329,437 98.851% 2001 2002 45,619,589 45,566,346 99.883% 53,084 45,619,430 100.000% 2002 2003 48,640,425 48,410,396 99.527% 102,832 48,513,228 99.738% 2003 2004 53,350,030 53,094,454 99.521% (92,794) 53,001,660 99.347% 2004 2005 59,680,948 59,395,927 99.522% - 59,395,927 99.522% Source: 1)Final Budget 2)YTD Treasurer's Tax Distribution 3)YTD Treasurer's Tax Distribution 2001 forward. 122 COUNTY OF WELD STATE OF COLORADO Direct and Overlapping Governmental Activities Debt December 31,2005 Net General Obligation Percentage Amount Bonded Debt Applicable to Applicable to Jurisdiction Outstanding Government(11 Government Cities&Towns $ 65,409,427 77.96% $ 50,993,985 Schools 776,469,193 53.40% 414,631,280 Special Districts 71,377,553 72.91% 52,042,016 Total Overlapping $ 913256173 $ 57281 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. 123 N Ln N 0 N m O Ln o 0 e N 0 39 N I e N O OI O cri N O 0 69 n i O O 01 I w m 6 a 0 N O NOICo N H O La o n N O N o pi N O VI N CO a a n O crs 0 N O O a N N w M 0 O N O O C 0 o N 2 N m 0 O ? E ) E E 0 O w ° [ 1p o d 0 W 0 a N C 1 NI Ny U U S C LL .=,c �/1 U d O .O c E E W N J A a ~ 0 ° a O o ,� a § fa m N d d J 0 N O E .- CO J U m N ° m C E to p• y ry m a J y _U N CO y v a N , ' O N O d Q Q N 0 I0 N O V Tz a• `o w v 0 n 2 d N QCI 1 O j O c_ a Q O d d y d C - E' lO 7 0- r) -0222 ; y a ° d N. N , a - a > 0 O o m E s m g N J C `E VO Od °1 10+1 O c d N N O f E Flis y a a o a J > d C \ g K 0 N 00 d le a E mI0 s m 3 m w N d L6 8. co 2 E co a E a c c 2 0 .E u 8 d d u) a a a s v 0 3 C d a c a ° J N a m 0 m c ° -"' 0 E a -d E v a • a - d 2 I:, ., a a 124 COUNTY OF WELD STATE OF COLORADO Private Purpose Revenue Bonds December 31,2005 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 $430,000 $0 $55,000 $375,000 Waste Service Corporation Landfill 2,500,000 2/91 1,380,000 0 145,000 1,235,000 RVNA Home Care Service, Inc Office 501,000 7/97 402,660 0 18,635 384,025 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 5/99 326,939 0 13,741 313,198 GSSLB Association Nursing Home Nursing Home 2,020,000 10/98 1,635,000 0 105,000 1,530,000 Greeley Center for Therapeutic 1,650,000 9/03 1,582,295 0 56,841 1,525,454 Independence,Inc Center BSC Hudson Manufacturing 5,715,000 10/05 0 5.715.000 0 5.715.000 TOTAL PRIVATE PURPOSE REVENUE BONDS $7 101 894 $5.715 0012 $394 217 $12 422 677 125 COUNTY OF WELD STATE OF COLORADO Demographic and Economic Statistics Last Ten Years Total Personal Income Per Unemployment Year Population ($ billion) Capita Income Rate 1996 149,332 2.93 19,328 4.30% 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% Source: Greeley/Weld Economic Development Office(EDAP) 126 COUNTY OF WELD STATE OF COLORADO Principal Employers Current Year and Ten Years Ago 2005 1996 Percent Percent Of Total County Of Total County Employees Rank Employment Employees Rank Employment Swift&Company 2960 1 2.74% 4331 1 5.39% Northern Colorado Medical Center 2200 2 2.04% 1357 5 1.69% School District 6 2037 3 1.89% 1675 4 2.09% State of Colorado(includes UNC) 1988 4 1.84% 1957 3 2.44% Eastman Kodak Company 1600 5 1.48% 2443 2 3.04% State Farm Insurance Companies 1513 6 1.40% 764 10 0.95% Aims Community College 1463 7 1.35% 1167 7 1.45% Weld County Government 1388 8 1.29% 1000 8 1.25% Startek USA 987 9 0.91% City of Greeley 974 10 0.90% 844 9 1.05% Hewlett Packard 1220 6 1.52% University of Northern Colorado Total Principal Employers 17,110 15.85% 16,758 20.87% Other Employers 90,870 84.15% 63,542 79.13% Total County Employment 107,980 100.00% 80,300 100.00% Source: Greeley/Weld Economic Development Office (EDAP) 127 N Tr co LO LO CD CO an CI• N C'4 N 0 ) N N r N 0 ca E 0) \ o / la , (0 , , ° , {in / =o • \ § N- N- } ® \ \ \ o o ( / CO CI CO , , , CO , _ ° Tr ij e < / 7 ) , ; co Li - a ) b § tc ( ± § Eo E ,cv) , ,NCO rCO _LC) ° , , - O co co 0 \ \ 2 a0 ] \ ( CO (NI N, , , r a ° \ ) To 0co 0 \ } „ r , , _ Tr = B ± / ± / / \ % f ) / ~ ) § ® a 1 ( \ \ \ \ N 43 55 k § / E ao -• FI - § \ _ / 0 j $ ( \ To 0 \ 0 0 0 / ) � # -o ' � % { � ` -a-) - ( [ ) } { _• 3 ) « a ® { ) : 2 = . E22 _ $ : - _ - | # < 2 § ) } ) ) ] G ] I- ]• � } / & a / ) 128 COUNTY OF WELD STATE OF COLORADO Operating Indicators by Function/Program Last Six Years Fiscal Year 2000 2001 2002 2003 2004 2005 Function/Program General government: Motor vehicle registration 478,727 294,019 305,879 433,188 439,146 462,877 Registered voters(1) 80,041 79,289 85,161 76,245 98,692 99,711 Number of votes cast(2) 65,317 22,422 56,730 32,476 89,099 46,327 Percent of registered voters voting 81.6% 28.3% 66.6% 42.6% 90.3% 46.5% Public safety: Adult arrests 1,457 1,520 1,435 2,738 1,387 1,543 Juvenile arrests 250 220 337 491 218 206 Average secure jail population 303 298 330 371 402 455 E911 calls 55,807 52,000 84,420 72,396 75,276 79,425 Building Permits 2,190 2,180 2,082 1,941 2,012 2,082 Valuation(thousands) $143,856 $148,426 $125,336 $201,442 $132,178 104,225 Public works: Miles of road graveled 427 440 440 440 401 401 Snow removal lane miles 1370 1390 1390 1,406 33,710 33,710 Grading lane miles 123,718 131,171 131,171 126,000 175,910 175,910 Miles of Upgrade-Aggregate Surfaced Roads 26 5 5 8 10 10 Culverts(new and repaired)15"and larger 204 240 240 240 217 217 Tons of asphalt laid 102,221 80,055 80,055 101,243 95,634 95,634 Tons of gravel crushed 490,000 500,000 500,000 510,000 487,477 487,477 Health and welfare: Social Services Caseload 9,900 9,900 9,900 9,900 12,000 14,000 Patient contacts 17,271 16,207 16,207 14,601 15,000 11,000 Immunizations 15,979 17,730 5,848 4,600 7,500 6,900 Culture and recreation: Visitors-Missile Park 700 700 695 558 575 575 County Fair Exhibitors -- 5,000 2,370 2,410 2,410 2,220 Economic assistance: Headstart clients 524 537 577 641 622 562 Migrant Headstart clients 250 99 200 146 175 266 Business-type activities: Paramedic Services Patients transported 6,973 6,687 7,027 7,060 7,331 7.284 Source: (1)Beginning in 1999 the number of registered voters reflects active voters. (2)Even years represent general elections,odd years coordinated elections. 129 COUNTY OF WELD STATE OF COLORADO Capital Asset Statistics by Function/Program Last Six Years Fiscal Year 2000 2001 2002 2003 2004 2005 Function/Program General government: Building Square Footage 585,045 604,100 620,310 684,551 684,551 Courtrooms 9 9 9 9 10 12 Information Systems Connections 959 997 1,240 1,292 Public safety: Jail capacity(beds) 454 454 454 454 386 386 Patrol cars 35 36 44 43 42 46 Radios and cell phones 828 857 947 939 1,140 Public works: Miles of Roads Paved 665 665 670 679 671 681 Unpaved 2,490 2,484 2,457 2,438 2,425 2,394 Un-maintained 255 254 253 250 252 512 Grader sheds 18 18 18 18 18 18 Motor graders 27 27 30 29 30 30 Health and welfare: Alternative fuel vehicles 4 4 4 5 6 4 Economic assistance: Headstart sites 12 12 12 11 11 11 Business-type activities: Paramedic Services Ambulances 11 11 10 10 10 10 130 COUNTY OF WELD STATE OF COLORADO Insurance in Force December 31,2005 Policy Policy Period Annual Name of Company Number Begins Expires Details of Coverage Liability Limits Premium Midwest Employers ECW005661 01/01/05 12/31/05 Excess Worker's Employer's Liability Casualty Company Compensation $1,000,000/Accident. Worker's Compensation Statutory Limits with County retaining first $300,000 each claim. $53,793 Lexington 413367 01/01/05 12/31/05 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 GPO06301696 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 $248,283 $125,000 each claim 131 COLORADO Single O Audit ferrn 111k COLORADO - ` on \ {/{( - eeee )/C ) ( )8 )§ 888 22;! : g it. 00 nr, J §§§§ `: : ■ 8 m®00 r°«: ° I- 258 ( ! F N Q[$# [ in < # r ;§ i!!> # 00 \ \ % �- `� `�tii /~ 7 \)<I 0 \ \ N 01-2 l7 ! 0 8 a! 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CO § § w § cc § - ) ( § ( � 0 \ 0 TO 0 lz \ \� J U U `�� § ;f . ! ,t22m § ]) ;d } F \!2222) !!/]) O• !!o o #)# § !#a[ Et - - ( /i! 7 I ■ !nmla o 2 /;;G<||§ i 504 ; ] ) ;ON fr fr } NNNNNN■»/ / \\\i0 \ / §§; NNNNNNNN NNNN COUNTY OF WELD STATE OF COLORADO Notes to Schedule of Expenditures of Federal Awards For the Fiscal Year Ended December 31, 2005 Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the County of Weld,Colorado and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of State, 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 basic financial statements. 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, 2005, the County had food commodities totaling $277,132 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. 138 BONDI & Co. LLC 44 INVERNESS DRIVE EAST (303)799-6826 PHONE ENGLEWOOD,COLORADO 80112 CERTIFIED PUBLIC ACCOUNTANTS (800)250-9083 TOLL-FREE MANAGEMENT CONSULTANTS www.bondico.com (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 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, 2005, and have issued our report thereon dated May 5, 2006. 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 in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters involving the internal control over financial reporting that we have reported to management of Weld County in a separate letter date May 5, 2006. Affiliate Offices Worldwide 139 Board of County Commissioners Weld County Greeley, Colorado 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. This report is intended solely for the information and use of management, 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. f """ " teno. II May 5, 2006 BONDI& Co. uc 140 BONDI & Co. LLC 44 INVERNESS DRIVE EAST (303)799-6826 PHONE ENGLEWOOD,COLORADO 80112 CERTIFIED PUBLIC ACCOUNTANTS (800)250-9083 TOLL-FREE MANAGEMENT CONSULTANTS www.bondico.com (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, 2005. Weld County, Colorado's, major federal programs are identified in the summary of auditor's 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's management. Our responsibility is to express an opinion on Weld County'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 on Weld County, Colorado's, compliance with those requirements. Affiliate Offices Worldwide 141 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, 2005. 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 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 and to test and report on internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of management, 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. / fno. ac. May 5, 2006 BONDI& Co. ac 142 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2005 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: Material weakness(es) identified? yes v no Reportable condition(s) identified not considered to be material weaknesses? yes v no Noncompliance material to financial statements noted? yes v no Federal Awards Internal control over major programs: Material weakness(es) identified? yes v no Reportable condition(s) identified not considered to be material weaknesses? v yes no Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .510(a)? 11 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 93.778 Medicaid Title XIX 93.600 Headstart 93.667 Social Services Block Grant Dollar threshold used to distinguish between Type A and Type B programs: $1,306,975 Auditee qualified as low-risk auditee? yes v no 143 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 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. Section III - Federal Award Findings and Questioned Costs 05-01— Missing Supporting Documents for Verification CFDA No. 10.551 Food Stamp Program 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 sixty 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. 144 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section III — Federal Award Findings and Questioned Costs (Continued) Questioned Costs: Cannot be determined Views of responsible officials and planned corrective action: See response at end of Food Stamp findings. 05-02- Food Stamp Claim against Household CFDA No. 10.551 Food Stamp Program 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 sixty 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. 145 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section III - Federal Award Findings and Questioned Costs (Continued) Questioned Costs: $ 648 Views of responsible officials and planned corrective action: See response at the end of the Food Stamp findings. 05-03- Sanctions on ABAWD Cases Only CFDA No. 10.551 Food Stamp Program 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 of program participants. Questioned Costs: Cannot be determined 146 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Views of responsible officials and planned corrective action: See response at the end of the Food Stamp findings. 05-04- Manual Sanction Process CFDA No. 10.551 Food Stamp Program 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 Views of responsible officials and planned corrective action: Since the rollout of the statewide system Colorado Benefits Management System (CBMS) on September 1, 2004, County Department of Social Services have experienced numerous problems that include, but not limited to the following; interfacing, batch, incorrect decision table results, cumbersome training materials and delays in processing client 147 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 business. To help solve these problems and delays, Weld County Department of Social Services has retained temporary staff since the beginning of CBMS, incurred overtime with full-time staff, requested additional and attended the training from the state, requested additional resources from the state, participated in statewide committees, sent cases to the state to be processed for payment and submitted numerous help desk tickets to the state to help alleviate these problems and delays in processing client business. As time goes on, CBMS problems are minimizing. There are still many problems with the system. However, staff is becoming more familiar with the system and training & resources are improving. We will improve our focus on the basics of eligibility which includes, but not limited to; having all supporting documentation in the case file, better case file organization, and better ways of doing business and/or changing our business processes to better fit CBMS. Weld County Department of Social Service is working hard to get back into compliance with OMB Circular A-133. Based on the Department's previous history, we take the audit findings very seriously and strive for zero tolerance in audit findings. As mentioned above, Weld County is not the only county in this situation. Deloitte Consulting released a report for the State of Colorado titled, "CBMS Post- Implementation Review, Detailed Assessments Findings and Recommendations," in May of 2005. This report detailed issues and recommendations for fixes to the system. It is our expectation that continued resolution of these issues through the implementation of Deloitte's recommendations will result in the reduction of our audit findings. 148 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section III - Federal Award Findings and Questioned Costs (Continued) 05-05 Head Start Program CFDA No. 93.600 Head Start 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. Views of responsible officials and planned corrective action: The Head Start Program accepts children who are age and income eligible under the Federal standard. When a child has applied to the program there is a check list that is 149 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 followed to make sure that the child is income eligible and income for the household is verified. The check list has been expanded to have specific check boxes and signature lines to indicate the appropriate information has been review and meets Federal standards. This process follows the federal requirement and FENWC Policies and Procedures for enrolling children in the Head Start Program. File documentation will be reviewed to ensure consistency and completeness in the future. Section IV - Prior Year Findings 04-01 TIMELY PROCESSING OF FOOD STAMP APPLICATIONS CFDA No. 10.551 Food Stamp Program Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria Per Colorado Department of Human Services (CDHS) Rules Volume 4, the determination and issuance of food stamp benefits to eligible households shall be made within 30 calendar days following the date the application was received. Condition As of December 31, 2004, the Food Stamp Program had 403 applications out of compliance for timely processing. This represents approximately 98% of the cases that were pending as of the end of the year. Our testing indicates that this was an issue starting in September of 2004 through year end. Effect With the implementation of the CBMS (Colorado Benefits Management System), eligible beneficiaries of the Food Stamp program have had their applications delayed beyond the required processing time. Recommendation: Weld County Social Services has been utilizing a central data processing center as well as 150 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 hiring additional temporary staff to assist with the backlog of cases. We recommend the backlog continue to be reduced to allow applications to be processed as they are received. Questioned Costs: Cannot be determined. Auditor Response: This item still exists. 151 .... ........ . COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-02 FOOD STAMP RE-DETERMINATIONS CFDA No. 10.551 Food Stamp Program Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria State agencies are required to automate their Food Stamp Program operations and computerize their systems for obtaining, maintaining, utilizing, and transmitting information concerning the Food Stamp Program. This includes transmitting information concerning the Food Stamp Program. This includes providing an automatic cutoff of participation for households which have not been recertified at the end of their certification period by reapplying and being determined eligible for a new period. Condition Of 40 Food Stamp client files selected for testing, 15 included applications that needed to go through the re-determination process to determine eligibility for a new period. This re- determination was not done within the allowable time, but benefits continued to be paid. Effect Benefits continued to be paid without proper re-determination of eligibility. Recommendation: Ensure re-determinations are done prior to paying out benefit. Questioned Costs: Cannot be determined. Auditor Response: This item has been corrected. 152 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-03 FOOD STAMPS BENEFITS PUSHED THROUGH CBMS CFDA No. 10.551 Food Stamp Program Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria Benefits should be paid only to eligible households and should be calculated using correct and verified data. Condition Since the implementation of CBMS in September, 2004, benefit payments for the Food Stamp program were "pushed" through the system. In some cases, a non-system issuance of benefits was done, which overrides existing data in the system to issue benefits. This was the case in at least two of the 40 files selected for testing. In other cases benefits were pushed through when re-determinations had not been done or technicians were having difficulty getting information into the system. We were not able to identify which of the files selected for testing had benefits "pushed" through, however County personnel indicated this was more than likely the case for many of the files. Effect In some cases, clients received benefits when proper re-determination of eligibility had not been completed, or benefits were issued at incorrect amounts. Recommendation: Benefits should only be paid when eligibility or re-determination of eligibility has been completed and benefit amounts can be calculated using correct and verified information. Questioned Costs: Cannot be determined. Auditor Response: This item has been corrected. 153 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-04 FOOD STAMP CLAIMS AGAINST HOUSEHOLDS CFDA No. 10.551 Food Stamp Program Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria: If a household receives more food stamp benefits than it is entitled to receive, the State must establish a claim against that household and demand repayment. Condition: The State had not verified the accounts receivable reports generated by CBMS, therefore no reliance can be placed on those reports. In addition, system errors are known to generate claims in error. A court order dated December 21, 2004 and signed by District Court Judge John W. Coughlin requires that clients and counties not be held responsible for benefits paid in error. Upon approval from the Board of County Commissioners, Weld County is planning to forgive these balances as applicable. Effect: Due to known programming errors and differences in application of an existing court order, internal controls are not in place to accurately establish and collect claims against households that received overpayments of benefits. Recommendation: Until the State is assured of the reliability of the reports generated by CBMS, the County may wish to establish their own methods of tracking receivables from clients. Questioned Costs: Cannot be determined Auditor Response: This item still exists. 154 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-05 ERROR IN DETERMINATION OF FOOD STAMP ELIGIBILITY CFDA No. 10.551 Food Stamp Program Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria: Agencies are required to process and store all case file information necessary for eligibility determination and benefit calculation and to identify specific elements that affect eligibility. Condition: Two of 40 Food Stamp files selected for testing represented incorrectly denied benefits when benefits should have been issued. Both related to data entry error when processing the application. One file was a file sent to the State Centralized Data Entry Team for processing. Effect: Applicants for food stamp benefits were incorrectly denied benefits they were entitled to. Recommendation: A system of review should be implemented since these errors related to data input and technician error. Given the caseload of many of the technicians, it is possible that these types of errors may occur, and a process needs to be in place to detect and correct them. Questioned Costs: $586. Auditor Response: This item still exists. 155 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-06 FOOD DOCUMENTATION OF HOUSEHOLD INCOME FOR FOOD STAMP ELIGIBILTY CFDA No. 10.551 Food Stamp Program Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria: Appropriate verifications of income should be done when determining eligibility. Condition: In 1 of the 40 Food Stamp files selected for testing, appropriate documentation was not available to support household income and ensure that proper verifications were done. In this case, verification of child support income was not documented. Effect: Eligibility verifications of income should be done when determining eligibility. Recommendation: All verifications of income should be clearly documented. The County may wish to create a summary form that would collect all the applicable information in one place, rather than just a checklist of items that are to be included. Questioned Costs: $290. Auditor Response: This item still exists. 156 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-07 ACCURACY OF DETERMINATION OF ELIGIBILITY AND BENEFIT CALCULATION FOR FOOD STAMPS CFDA No. 10.551 Food Stamp Program Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Agriculture Criteria: State agencies are required to automate their Food Stamp Program operations and computerize their systems for obtaining, maintaining, utilizing, and transmitting information concerning the Food Stamp Program. This includes processing and storing all case file information necessary for eligibility determination and benefit calculation. Condition: In discussions with County Social Services personnel, it was noted that errors in the CBMS system were sometimes denying benefits when they should be approved, or benefits were being paid but at incorrect amounts. This is evidenced by the number of changes made to the decision tables upon which CBMS operations. Effect: Eligibility determination and/or benefit calculations could be in error. Recommendation: The CBMS system needs to be proven reliable for eligibility determination and benefit calculation. Questioned Costs: Cannot be determined. Auditor Response: This item still exists. 157 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-08 TIMELY PROCESSING OF TANF BENFITS CFDA No. 93.558 Temporary Assistance for Needy Families Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: Per CDHS Rules Volume 3, the determination of eligibility for Colorado Works shall be made within forty-five (45) calendar days of the original date of application unless the applicant has requested and the County has approved the extension of time. Condition: At December 31, 2004, the TANF program had 145 applications that were out of compliance for timely processing. This represents approximately 69% of the cases that were pending as of the end of the year. Audit testing indicated this was an issue throughout the later part of 2004, as 12 of the 35 files selected for testing were out of compliance. Effect: With the implementation of the CBMS (Colorado Benefits Management System), eligible beneficiaries of the TANF program have had their applications delayed beyond allowable processing times. Recommendation: Weld County Social Services has been utilizing a central data processing center as well as hiring additional temporary staff to assist with the backlog of cases. We recommend continuing to reduce the backlog to allow applications to be processed as they are received. Questioned Costs: Cannot be determined. Auditor Response: This item has been corrected. 158 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-09 TANF SANCTION CALCULATIONS CFDA No. 93.558 Temporary Assistance for Needy Families Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: If the State agency responsible for administering the State plan approved under Title IV- D of the Social Security Act determines that an individual is not cooperating with the State in establishing paternity, or in establishing, modifying or enforcing a support order with respect to a child of the individual, and reports that information to the State agency responsible for TANF, the State TANF agency must (1) deduct an amount equal to not less than 25% from the TANF assistance that would otherwise be provided to the family of the individual, and (2) may deny the family any TANF assistance. If an individual refuses to engage in required work, a State must reduce assistance to the family, at least pro rata, with respect to any period during the month in which the individual so refuses, or many terminate assistance. Condition: In 2 cases selected for TAM' testing, it was noted that required sanctions were not properly calculated or applied. This appears to be a system error within CBMS. Upon discussion with client personnel, other situations where this problem existed were reviewed, however they were not files selected for testing. Effect: Required sanctions may not be calculated or applied as necessary. Recommendation: Technicians should closely monitor their cases and evaluate when sanctions are required. Clear documentation of those sanctions should be included in the file and compared to the information coming out of CBMS. 159 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) Questioned Costs: Cannot be determined. Auditor Response: This item has been corrected. 04-10 TANF INCOME ELIGIBILITY AND VERIFICATION SYSTEM CFDA No. 93.558 Temporary Assistance for Needy Families Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: Each State shall participate in the Income Eligibility and Verification System (IEVS) required by section 1137 of the Social Security Act as amended. Under the State plan, the State is required to coordinate data exchanges with other federally assisted benefit programs, request and use income and benefit information when making eligibility determinations, and adhere to standardized formats and procedures in exchanging information with other programs and agencies. Condition: The CBMS interface with Social Security information (Beneficiary and Earnings Data Exchange (Bendex) is non-operational. Bendex is one of the pieces of information contained within the Income and Eligibility Verification System (IEVS). County departments do not have access to Bendex information any other way. Effect: Data exchanges with other federal program databases are not occurring as required. Recommendation: System errors should be corrected so programs are in compliance. 160 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) Questioned Costs: Cannot be determined. Auditor Response: This item still exits. 04-11 TANF BENEFITS PUSHED THROUGH THE SYSTEM CFDA No. 93.558 Temporary Assistance for Needy Families Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: Benefits should be paid only to eligible households and should be calculated using correct and verified data. Condition: Since the implementation of CBMS in September 2004, benefit payments system issuance of benefits was done, which overrides existing data in the system to issue benefits. This was the case in at least two of the 35 fides were selected for testing. In other cases, benefits were pushed through when re-determination had not been done or technicians were having difficulty getting the information into the system. We were not able to identify which of the files selected for testing had benefits "pushed" through, however client personnel indicated this was more than likely the case for many of the files. Effect: In some cases clients received benefits when proper re-determination of eligibility had not been completed, or benefits were issued at incorrect amounts. Recommendation: Benefits should only be paid when eligibility or re-determination of eligibility has been completed and benefit amounts can be calculated using correct and verified information. 161 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV — Prior Year Findings (Continued) Questioned Costs: Cannot be determined. Auditor Response: This item has been corrected. 04-12 NONCOMPLANCE WITH TANF PROGRAM REQUIREMENTS CFDA No. 93.558 Temporary Assistance for Needy Families 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: 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 4 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 IRCs are completed timely and documented in the file. Questioned Costs: $750. Auditor Response: This item still exists. 162 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-13 MISSING TANF FILE CFDA No. 93.558 Temporary Assistance for Needy Families Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: Appropriate supporting documentation and correspondence should be maintained by the County. Condition: Of the 35 TANF files selected for testing, one file could not be located. Effect: Various verifications, correspondence and other data could not be located to support the information included in the CBMS database. Recommendation: Maintain a tracking system to identify when and where files are checked out. Questioned Costs: Cannot be determined. Auditor Response: This item has been corrected. 163 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) 04-14 NONCOMPLIANCE WITH TANF PROGRAM REQUIREMENTS CFDA No. 93.558 Temporary Assistance for Needy Families Pass Through the State of Colorado Department of Human Services Federal Agency: Department of Health and Human Services Criteria: As of a condition of eligibility, the caretaker relative shall provide verification or written confirmation by a physician or nurse pursuant to records in the immunization tracking system as set forth in Section 25-4-1705(5)(e), C.R.S., that all children whose needs are included in the assistance unit receiving Colorado Works benefits are being brought up- to-date with immunization and that, no later than the first re-determination of eligibility, each child has received all immunization for which the child is eligible according to the age of the child, unless exempt due to religious or medical reasons in accordance with Federal law. Condition: For 3 of the 35 TANF cases tested, documentation of child immunizations was not found. Effect: Program requirements are not being met. Recommendation: Caseworkers should ensure that all documentation is included in the file when following up on requested information. Questioned Costs: $560. Auditor Response: This item still exists. 164 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31, 2005 Section IV - Prior Year Findings (Continued) MANAGEMENT RESPONSE: Since the rollout of the statewide system Colorado Benefit Management System (CBMS) on September 1, 2004, County Departments of Social Services have experienced numerous problems and delays in processing client business due to CBMS. Weld County is one of those counties. To aid in solving these problems and delays, Weld County Department of Social Services has hired more temporary staff, incurred more overtime with full-time staff, requested additional training and resources from the state, participated in statewide committees, sent cases to the state to be processed for payment and submitted numerous help desk tickets to the state to help alleviate these problems and delays in processing client business. Weld County Department of Social Services is working hard to get back into compliance with OMB Circular A-133. Based on the Department's previous history, we take the audit findings very seriously and strive for zero tolerance in audit findings. As mentioned above, Weld County is not the only county in this situation. Deloitte Consulting released a report for the State of Colorado titled, "CBMS Post- Implementation Review, Detailed Assessment Findings and Recommendations," in May of 2005. This report details issues and recommendations for fixes to the system. It is our expectation that successful resolution of these issues through the implementation of Deloitte's recommendations will result in the reduction of our audit findings. 165 COUNTY OF WELD STATE OF COLORADO NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2005 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, 2005. 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, 2005, the County had food commodities totaling $277,132 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. 166 Hello