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Home My WebLink About20051987.tiff COMPREHENSIVE ANNUAL FINANC IAL REPORT YEAR ENDED DECEMBER 31, 2004 +v ' .A , ib r v • • 4)1 ; - •r ,. ).• . ., •L t; t i � . . . .. a •a;•12, et I ; a �► . E•"•f ‘ % 1 II ketell,N, • 1 - q if i 3/41 i ? It . ' . 1 li / 1 I If - I 111\1 1 . J - ! COUNTY OF WELD Prepared by: Finance/Accounting STATE OF COLORADO Departments L'tn5Cn7 4vivid-- 2005-1987 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 63 Modified Approach for Infrastructure Assets 64 Required Supplementary Information Other Than MD&A: Schedules of Revenues,Expenditures and Changes in Fund Balances-Actual and Budget Major Funds: General Fund 65 Public Works Fund 70 Social Services Fund 72 Human Services Fund 74 Supplemental Information: Combining Statement of Non-major Governmental Funds: Explanation of Funds 77 Combining Balance Sheet 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 84 Schedules of Revenues,Expenditures and Changes in Fund Balances-Actual and Budget Non-major Governmental Funds: Special Revenue Funds: Capital Expenditures Fund 86 Conservation Trust Fund 87 Contingent Fund 88 Emergency Fund 89 Public Health Fund 90 Solid Waste Fund 91 Bebee Draw Fund 92 Component Units: Housing Authority 93 E-911 Authority Fund 94 Local Highway Finance Report 96 Combining Statements of Internal Service Funds: Combining Statement of Net Assets -Internal Service Funds 98 Combining Statement of Revenues, Expenses and Changes in Net Assets -Internal Service Funds 100 Combining Statement of Cash Flows -Internal Service Funds 102 Combining Statement of Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities -Fiduciary Funds 104 ii Schedule of Revenues, Expenses and Changes in Fund Equity-Actual and Budget Enterprise Fund and Internal Service Funds: Enterprise Fund: Paramedic Services 105 Internal Service Funds: Motor Vehicle Fund 106 Health Insurance Fund 107 Insurance Fund 108 Phone Service Fund 109 Weld Finance Corporation 110 STATISTICAL SECTION Net Assets by componet 112 Changes in Net Assets 113 Fund Balances of Governmental Funds 114 Changes in Fund Balances, governmental Funds 115 Assessed and Estimated Actual Value of Property 116 Property Tax Levies-Direct and Overlapping Governments 117 Principal Taxpayers 118 Property Tax Levies and Collections 119 Table Relating to Bonded Debt 120 Direct and Overlapping Governmental Activities Debt 121 Legal Debt Margin Information 122 Private Purpose Revenue Bonds 123 Demographic and Economic Statistics 124 Principal Employers 125 Full-time Equivalent Employees by Function/Program 126 Operating Indicators by Function/Program 127 Capital Asset by Function/Program 128 Insurance in Force 129 SINGLE AUDIT Schedule of Expenditures of Federal Awards 131 Notes to Schedule of Expenditures of Federal Awards 136 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards 137 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 139 Schedule of Findings and Questioned Costs 141 Summary Schedule of Prior Audit Findings 148 iii COLORADO rnTRODUCitiMr Virus 1111De COLORADO DEPARTMENT OF FINANCE I AND ADMINISTRATION WI D PHONE (970) 356-4000, EXT.4218 AX: (970) 352-0242 C. X 758 GREELEYF COLORADP.O. O 80632 O632 COLORADO June 1, 2005 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, 2004, 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 31,2004 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 Anderson and Whitney, P.C., 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 31,2004, are fairly presented in conformity with GAAP. The independent auditor's report is presented in the front of the financial section of this report. The independent audit of the County's financial statements was part of a broader, federally mandated "Single Audit" in accordance with provisions of the Single Audit Act of 1984, Federal Single Audit Amendment of 1996, and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The"Single Audit"is designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, especially as they relate to the administration of federal awards. Single audit schedules and the auditor's reports are available in the "Single Audit" section of the document. PROFILE OF WELD COUNTY Location and demographics. Weld County is located along Colorado's front range in the northern part of the state. Weld County covers an area of 3,999 square miles in north central Colorado. It is bordered on the north by Wyoming and Nebraska and on the south by the Denver metropolitan area. The third largest county in Colorado, Weld County has an area greater than that of Rhode Island, Delaware and the District of Columbia combined. The climate is dry and generally mild with warm summers, mild winters and a growing season of approximately 138 days. The land surface is fairly level in the east,with rolling prairies and low hills near the western border. Elevations in the county range from 4,400 to 5,000 feet. The South Platte River and its tributaries, the Cache la Poudre, Big Thompson, Little Thompson, Boulder, St. Vrain, and other smaller streams, flow into Weld County from the south and west, leaving the county on the east. There are 31 incorporated towns in Weld County. The county seat and principal city, Greeley, is located in the west central part of the county and contains almost half the county's population. Generally, most of the remaining population resides within a 20 to 30 mile radius of Greeley; the 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 2004 was approximately 218,000. 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 1,009 regular staff (those receiving standard benefits) and 274 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 2004, 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 2004: 3 Honorable Board of Commissioners > Open a new 226-bed jail expansion. > Staff the new jail for opening at the beginning of fiscal year 2004. > 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. > Remodel Courthouse and Centennial Complex to accommodate two additional judges. > Upgrade the criminal justice information and computer-aided dispatch system (Tiburon). > Continue program to respond to the West Nile virus. > Continue to develop plans for the County for the bioterrorism and emergency preparedness. FACTORS AFFECTING FINANCIAL CONDITION Economic Conditions and Outlook. In 2005, most economists are anticipating that the national economic recovery will continue to gain momentum. Demand and production growth are strong, profits are up, financial markets are steady, and the global economy is strengthening; however, labor markets remain soft. Inflation is anticipated to remain low, and most likely interest rates will remain low with only some pressure for upward movement. Colorado's economic indicators also point to a rebound and strengthening State economy. Employment is picking up and appears to have bottomed out in August,2003. Construction acitivity, 4 Honorable Board of Commissioners especially residential, remains strong. With the drought and mad cow disease scare,agriculture has suffered some in Colorado. 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 11`h and the recession. Weld County's local economy is very reflective of the statewide economy. 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 Calpine open a new $300 million co-generation plant, Owens-Illinois began construction of a $120 million dollar glass plant that will open in 2005, R R Donnelly is adding another printing press with 50 additional employees, and the Kodak plant in Windsor has been picked by Kodak to expand its digital imaging technology production. In addition to these major projects, a number of small new and existing companies are expanding in Weld County, especially in southwest Weld County. Although the economic outlook is good, there are still a number of ifs as we look forward. The sluggish job growth must pick up to sustain the economic recovery. The world must team to live with the uncertainty surrounding terrorism, and global unrest; capital investment must continue by businesses; inflation must remain low;the federal deficit must be brought under control;and,finally, the consumer must continue to have confidence in the economy and the future. Hopefully, no single issue, or combination of these issues, will derail the economic recovery that is gaining steam. For the Future. As Weld County looks to 2005 and beyond,a number of challenges face the Board and staff to meet the ever changing and growing demands to maintain the quality of service the citizens have grown to expect from their county government. Weld County's budget is a reflection of its status in the hierarchy of governments, revenue trends, local circumstances,and its commitment to provide efficient and defective services. It is clear that local governments, such as Weld County, are operating in a new environment. It is an environment that has both opportunities and challenges that promise more room for growth, exercise of imagination, responsibility, and accountability than we have known in the past. The key challenge will be to define what must be provided in areas of public services and goods and the most efficient and effective manner in which to deliver them. The manner in which Weld County government meets the challenges ahead will be best decided in an atmosphere of continuing cooperation and interaction between citizens and their government. 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 on goals and objectives consistent with the core services philosophy and mission statement. The State of Colorado and local governments are in the middle of a difficult fiscal period. Competition for limited public funds has been steadily increasing. The State of Colorado is in a "structural deficit"resulting from the fiscal interplay between the tax-and-spend limits in TABOR and Amendment 21 dealing with school financing. The State Legislature is exploring a variety of concurrent resolutions to amend the state constitution to correct the problem. Any solution will require voter approval,which may be difficult to obtain. Without the voters granting relief in the form of a constitutional amendment, the State's budget woes are projected to be with us until sometime between 2008-2011. Weld County is adversely impacted by the State's budgetary problems, since the county is a subdivision of the State, and program revenues and expenditures are dependent 5 Honorable Board of Commissioners upon State decisions, especially in the areas of health, employment, and social services. 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, 2004, 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 $1,709,881 in 2004. 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, 2004, are classified in the category of lowest credit risk as defined by the Governmental Accounting Standards Board, except for mutual funds and investment pools which cannot be categorized. Risk Management. During 2004 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, 2003. 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 2005 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. 6 Honorable Board of Commissioners Financial reports are valuable in that they provide a permanent historical record of a governmental agency's operation to the management and the general public. It is our belief that this is a comprehensive report of the 2004 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, 2004. The preparation of this report could not be accomplished without the efficient and dedicated services of the entire staff of the Accounting/Finance Department. I should like to express my appreciation to all members of the department who assisted and contributed to its preparation. I would also like to thank the members of the Board of County Commissioners for their interest and support in planning and conducting financial operations of the County in a responsible and progressive manner. Respectfully submitted,Aimedefvoue.L_ 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, 2003 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting and financial reporting. ,wc,E Og / v arn� W WARDD p = AMO L: W SON p President ,45 Scar. . A .0 Executive Director 8 n e t ^^,, a 4— m o a m rn c W D7 U � m c m m t C L C IMIMI CO CO 2 O U o 2 m L 'O m Q� ///)� ` 2 2 c w C s LL c .Y O O > N Zco vJ U 3 do �y H m y a) a) Q O W W ¢ " E °C 2 , z _ _O d d U m o y C O O 0 .. m m C C N O c6 Z O " a O C-1 E c° `-' N C N U m O U v u WN _ ? Z • 1:2 _ (n N C Co > o a w E O � � o � � E c O d O U UO v� E 2 E OQ U (o _ _ o W z `-1-/ m w a C U 3 O Co > �O ma m W i 0 m C > U vm3 N C — r f o o - so d o a. E o0 ao wed CC i— .� o U U - ¢° a W U C n 5 I— V � — `o Z D .›r m C O) N 0 O 0) 0 L ouE 0 C o — d .C N (Q C N O NO Ecm • m E C U y C C .0 U c a o �? m° O O -LS DN 0 O E •- o oc6 O `- �''o o,m 0a a U E O a U ❑ c c p � E j `y 0 U U U a o5 0 co o / CO m El � 0 Z CO a „— -1 c 0 O O Y d C O U v a a U v 0 0 U y i d O /J E a> c y `I am° m „ o 0 0 m 0 IS I7) — E a) _ — E • 4 . c E U z C E O ct m II ir c0 (n0 c Co "- oW H O j W U U Q) _ = Q_ A x IL O = 0. W U Q U n a ' �i E J F W o To � H o _ 8 „ a o d U < Q a C C O C •- N off- g m m c m m g 0 E u a U W -Ln .2 N � C O CO tC c�6 _ dv cO m° m cmc ccry " ztn Q v E U y O U CO O N c0 c a c g c a J CO c a N c -J U c0 E O cccE z — N ccmuw 03M EaMmcaumm w O. C U N E O C E c w g a d w E a= c �� O c o UU [to d LLac � v ¢ U � LL (n N > a IL 0_ CO on 9 COUNTY OF WELD STATE OF COLORADO PRINCIPAL COUNTY OFFICIALS December 31, 2004 Board of County Commissioners Robert Masden William Jerke Mike Geile 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 Eurich Treasurer Don Mueller 10 FINANCIAL SECTION rffi giefe COLORADO of ANCIERSON A Professionalifie Accountants Corporation is Certified Public Accountants ©WI-IITNEy ■ ■ ■ • ■ Independent Auditors' Report Board of County Commissioners Weld County, Colorado 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, 2004, which collectively comprise the County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Weld County's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Weld County Housing Authority. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion on the basic financial statements, insofar as it relates to the amounts included for the Weld County Housing Authority, is based on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget 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 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, 2004, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States. Management 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 75 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. 5801 West 11th Street • Suite 300 11 (970) 352-7990 Greeley, Colorado 80634-4813 FAX (970) 352-1855 Board of County Commissioners Weld County, Colorado Page 2 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. In accordance with Government Auditing Standards, we have also issued our reports dated May 20, 2005 on our consideration of Weld County's internal control structure over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards, and should be read in conjunction with this report in considering the results of our audit. Q .ews- f W /C . May 20, 2005 12 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, 2004. 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$281.0 million at the end of 2004. Of this amount, $30.8 million may be used to meet the government's ongoing obligations to citizens and creditors. The remaining $250.2 million is invested in capital assets or restricted by law. • The County's General Fund balance was$8.2 million as of December 31,2004. Of this amount, $1.5 million is reserved for emergencies, advances, and encumbrances. • The 2004 General Fund balance is $3.1 million higher than in the previous year. The total fund balance is 16%of 2004 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 2005. 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 governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Public Works Fund, Social Services Fund, Human Services Fund, and Capital Expenditures Fund,all of which are considered to be major funds. Data from the other five funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 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 govemment-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 budget for all of its funds.A budgetary comparison statement has been provided for all major funds on pages 65 to 76 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 61 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 82 through 92 and 98 through 110, 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, 2004, assets exceeded liabilities by$281.0 million. The following table provides a summary of the County's governmental and business-type net assets for 2004 and 2003. Table 1 Net Assets (in Millions) Governmental Activities Business-type Activities Total 2004 2003 2004 2003 2004 2003 Assets Current and other assets $115.40 $ 98.65 $ .30 $ ( .03) $115.70 $ 98.62 Capital assets 246.31 254.52 .86 .83 247.17 255.35 Total assets $361.71 $353 .17 $1.16 $ .80 $362 .87 $353 . 97 Liabilities Current and other liabilities $ 73 .78 $ 62 .82 $ .30 $ .24 $ 74.08 $ 63 .06 Long-term liabilities 7.80 8.14 .00 . 00 7.80 8. 14 Total liabilities $ 81.58 $ 70.96 $ .30 $ .24 $ 81.88 $ 71.20 Net Assets Invested in capital assets, of related debt $239.92 $247.76 $ .86 $ .83 $240.78 $248.59 Restricted 9.45 7.94 .00 9.45 7.94 Unrestricted 30 .76 26.51 .00 ( .27) 30.76 26.24 Total net assets $280 . 13 $282 .21 $ .86 $ .56 $280 .99 $282 .77 A significant portion of Weld County's net assets (11%) represents unrestricted net assets of $30.76 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 (85.6%) 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 $9.4 million of the County's net assets(3.4%)represents resources that are subject to external restrictions on how they may be used. Included in this category are the TABOR emergency reserve of$3.5 million and $1.7 million in reserves for insurance claims. At the end of 2004,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 decreased the County' s net assets by $1.8 million in 2004. The following table indicates the changes in net assets for governmental and business-type activities in 2004 and 2003. Table 2 Changes in Net Assets (in Millions) Governmental Activities Business-type Activities Total 2004 2003 2004 2003 2004 2003 Revenues Program revenues: Charges for services $ 30.72 $ 29.11 $ 9.98 $8.51 $ 40.70 $ 37.62 Operating grants and contributions 27.12 25.96 0.05 0.00 27.17 25.96 General revenues: Property taxes 50.79 47.53 0.00 0.00 50.79 47.53 Other taxes 10.13 8.03 0.00 0.00 10.13 8.03 Other revenues 1.64 1.47 0.00 0.00 1.64 1.47 Total revenues $120.40 $112.10 $10.03 $8.51 $130.43 $120.61 Expenses General government $ 21.46 $ 23.62 $ 0.00 $0.00 $ 21.46 $ 23.62 Public safety 30.78 27.84 0.00 0.00 30.78 27.84 Streets and highways 32.69 33.35 0.00 0.00 32.69 33.35 Culture and recreation 1.01 .78 0.00 0.00 1.01 .78 Health and welfare 23.54 21.40 0.00 0.00 23.54 21.40 Interest on long-term debt .36 .38 0.00 0.00 .36 .38 Economic assistance 12.65 11.41 0.00 0.00 12.65 11.41 Paramedic services 0.00 0.00 9.74 8.80 9.74 8.80 Total expenses $122.49 $118.78 $ 9.74 $8.80 $132.23 $127.58 Increase(decrease)in net assets $ (2.09) $ (6.68) $ .29 $(.29) $ (1.80) $ (6.97) Governmental Activities. Governmental activities decreased Weld County's net assets by$2.09 million in 2004. Key elements of this decrease are as follows: • Total revenues were $120.40 million, up 7.4% from the prior year, due to property taxes and specific ownership taxes. 17 • Expenses totaled $122.49 million. This represents a 2.9% increase over the previous year. Increases occurred in most categories due to normal wage and inflation costs 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 2004 by$292,115, 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 2004, the combined ending fund balances of County governmental funds was $38.41 million. Approximately 76% 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 ($3.45 million); 2) a state- constitution mandated emergency reserve($3.5 million); 3)an advance to the Paramedic Services ($885,000); and 4) prepaid expenses and inventory ($1.3 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 $8.2 million as of December 31, 2004. Of this amount, $885,000 is reserved for advances. The 2004 fund balance is $3 million higher than the previous year. 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 13% of total 2004 expenditures, while total fund balance is 16.0% 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 $14 million in fund balance at the end of 2004. This amount was$3 million more than the previous year. 2004 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$2.8 million balance at the end of 2004 which is 4.7% more than 2003. 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 in expenditures for 2004 was primarily attributed to the Job Services,TANF,and Work Force incentive. 18 5. Capital Expenditure Fund. The Capital Expenditure Fund accounts for the construction of major capital facilities. These are the completion of the expansion of the jail, downtown Greeley parking lot and renovation of the courthouse to add courtrooms. The $1.7 million decrease in fund balance between 2003 and 2004 represents the cost of construction payments for the three major projects in 2004. The remaining fund balance is reserved for capital projects. 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 $(4,761). The total increase in net assets for the fund was $292,115. 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, 2003 and 2004 12 i.; j�{ 10 Mal I MI,ILI lit8 ii ^I'i iiii ,I i l{'1 I NTIR O s ' 6 p� lil f�IS. Ilil II I 111,1 1111 !!S }hail gilluilkilii ran ILL 4 ' 14) TiS NI 2 lil . pr. mmitiggEN boo ill r'i ID2003 0 ■2004 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 2003, the Board of County Commissioners appropriated $51.8 million for general fund expenditures and other financing uses. 19 Table 3 2004 General Fund Budget (in Millions) Original Budget Amendments Final Budget Actual Revenue and other financing sources $ 51.9 $ 3.9 $ 55.8 $ 57.9 Expenditures and other financing uses 51.8 5.6 57.4 54.7 Mid-year budget amendments included: • $1.5 million for Island Grove Park improvements • $1.2 million for a grant for the economic development/community development • $.3 million for overtime due to increased jail population • $.5 million for added energy costs • 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 $ 3.1 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, 2004 totals $246.3 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 1%. Major capital asset events during the current fiscal year including the following: • Road construction or major improvements totaling $.748 million. • Completion of a 236 bed jail expansion. • Purchased and remodeled new facility for the Department of Planning Services • Completed renovation of the courthouse to add courtrooms. 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 99% 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, 2004, Weld County had only the outstanding long-term debt (principal amount)of$6.41 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$89.8 million in 2004. The county currently has no debt subject to the limitation. No new debt was issued in 2004. 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 2004 budget. • Continued growth in Weld County caused increased demands in all service areas of the county, especially in human services and transportation • The State of Colorado's budget crisis has led to a number of grant programs in the area of health, human services and social services being reduced or costs shifted to the county • Opened a new 226-bed jail expansion. • Staff the new jail for opening at the beginning of fiscal year 2004. • 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. • 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)at a cost of$350,000. • Continue to explore revenue and operational options to keep the Paramedic Services a viable and affordable service to the citizens. 21 • Upgrade the criminal justice information and computer-aided dispatch system (Tiburon). • Continue program to respond to the West Nile virus. • 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 10111 Street, Greeley, CO 80631. 22 BASIC FINANCIAL STATEMENTS ft\it COLORADO COUNTY OF WELD STATE OF COLORADO Statement of Net Assets December 31, 2004 Primary Government Component Units Governmental Business-type Housing E-911 Activities Activities Total Authority Authority ASSETS Cash and cash equivalents $ 43,147,675 $ 38,724 $ 43,186,399 $ 968,391 $ 1,678,276 Property taxes receivable 61,317,231 - 61,317,231 - - Receivables(net of allowance for uncollectibles) 1,620,825 1,005,509 2,626,334 466,603 - Due from other governments 2,646,642 - 2,646,642 - - Internal balance 774,363 (774,363) - - - Inventories 1,222,566 - 1,222,566 - - Other assets 379,574 28,645 408,219 50 10,649 Restricted assets: Cash and cash equivalents 4,284,374 - 4,284,374 - - Capital assets,net(Note 6) 246,314,964 864,425 247,179,389 12,055 860,964 Total assets 361,708,214 1,162,940 362,871,154 1,447,099 2,549,889 LIABILITIES Accounts payable and other current liabilities 5,658,834 56,227 5,715,061 4,903 4,255 Accrued liabilities 2,875,043 247,049 3,122,092 2,047 - Due to other governments 735 - 735 - - Uneamed revenue 64,734,881 - 64,734,881 15,452 - Other liabilities 16,402 - 16,402 - - Long-term liabilities: Due within one year: Certificates of participation 400,000 - 400,000 - - Compensated absences 88,887 - 88,887 34,719 - Due in more than one year: Certificates of participation 5,990,248 - 5,990,248 - - Compensated absences 1,810,849 - 1,810,849 - - Total liabilities 81,575,879 303,276 81,879,155 57,121 4,255 NET ASSETS Invested in capital assets,net of related debt 239,924,716 864,425 240,789,141 12,055 860,964 Restricted for: Programs 4,199,374 - 4,199,374 - - Emergencies 3,500,000 - 3,500,000 - - Claims 1,748,949 - 1,748,949 - - Unrestricted 30,759,296 (4,761) 30,754,535 1,377,923 1,684,670 Total net assets $ 280,132,335 $ 859,664 $ 280,991,999 $ 1,389,978 $ 2,545,634 See accompanying notes to the basic financial statements 23 COUNTY OF WELD STATE OF COLORADO Statement of Activities Year Ended December 31, 2004 Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Primary government: Governmental activities: General government $ 21,453,228 $ 8,086,983 $ 564,121 $Public safety 30,784,142 7,609,527 11,391,499 - Streets and highways 32,688,807 1,157,634 947,635 - Health and welfare 23,538,421 12,699,858 2,435,287 - Culture and recreation 1,005,697 309,948 361,926 - Economic assistance 12,670,157 862,223 11,424,217 - Interest on long-term debt 358,054 - - - Total governmental activities 122,498,506 30,726,173 27,124,685 - Business-type activities: Paramedic service 9,738,148 9,979,050 50,824 - Total primary government $ 132,236,654 $ 40,705,223 $ 27,175,509 $ - Component units: Housing Authority $ 2,988,587 $ 244,178 $ 2,796,944 $ 270,000 E-911 Authority 952,535 1,252,425 - - Total component units $ 3,941,122 $ 1,496,603 $ 2,796,944 $ 270,000 GENERAL REVENUES Taxes: Property taxes Specific Ownership Other Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on sale of 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 $ (12,802,124) $ - $ (12,802,124) $ - $ - (11,783,116) - (11,783,116) - - (30,583,538) - (30,583,538) - - (8,403,276) - (8,403,276) - - (333,823) - (333,823) - - (383,717) - (383,717) - - (358,054) - (358,054) - - (64,647,648) - (64,647,648) - - 292,115 292,115 - - (64,647,648) 292,115 (64,355,533) - - - - - 322,535 - - - - - 299,890 - - - 322,535 299,890 50,785,919 - 50,785,919 - - 6,795,897 - 6,795,897 - - 3,333,336 - 3,333,336 - - 1,644,979 - 1,644,979 - - 62,560,131 - 62,560,131 - - (2,087,517) 292,115 (1,795,402) 322,535 299,890 282,219,852 567,549 282,787,401 1,067,443 2,245,744 $ 280,132,335 $ 859,664 $ 280,991,999 $ 1,389,978 $ 2,545,634 25 COUNTY OF WELD STATE OF COLORADO Governmental Funds Balance Sheet December 31,2004 Public Works Social Services Human Services General Fund Fund Fund Fund ASSETS Cash and short-term investments $ 11,066,722 $ 13,482,149 $ 4,937,859 $ 524,705 Receivables(net of allowance for uncollectibles): Current property taxes 41,423,323 5,963,419 5,278,371 - Delinquent property taxes 1,376,693 175,347 174,271 - Accounts 488,759 180,497 76,850 146,787 Special assessment - 102,605 - - Due from other County funds 533,235 598,172 - 185,486 Due from other governments 1,375,818 - 405,424 865,400 Advances to other funds 885,000 - - - Inventories 97,456 887,262 - 191,745 Other assets 313,393 - - 1,076 Total Assets $ 57,560,399 $ 21,389,451 $ 10,872,775 $ 1,915,199 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 4,439,024 $ 303,014 $ 119,094 $ 211,300 Accrued liabilities 1,173,908 247,690 137,978 448,296 Other liabilities - - 16,402 - Due to other County funds 522,777 585,153 479,438 51,871 Due to other governments - - 735 - Unearned revenue 43,001,334 6,252,310 7,301,826 246,494 Unexpended grant revenue 207,117 - - 51,378 Total Liabilities 49,344,160 7,388,167 8,055,473 1,009,339 Fund Balances: Reserved for encumbrances 220,449 2,108,303 - - Reserved for advances to other funds 885,000 - - - Reserved for other assets 313,393 - - 1,076 Reserved for inventories 97,456 887,262 - - Reserved for emergency - - - - Unreserved: General Fund 6,699,941 - - - Special Revenue Funds - 11,005,719 2,817,302 904,784 Capital Project Fund - - - - Total Fund Balances 8,216,239 14,001,284 2,817,302 905,860 Total Liabilities and Fund Balances $ 57,560,399 $ 21,389,451 $ 10,872,775 $ 1,915,199 See accompanying notes to the basic financial statements 26 Capital Other Total Expenditures Governmental Governmental Fund Funds Funds $ 2,028,264 $ 10,573,845 $ 42,613,544 4,431,838 1,593,470 58,690,421 88,112 45,838 1,860,261 - 573,432 1,466,325 - - 102,605 - 390,622 1,707,515 - - 2,646,642 - - 885,000 - 16,776 1,193,239 - 660 315,129 $ 6,548,214 $ 13,194,643 $ 111,480,681 $ 194,451 $ 41,311 $ 5,308,194 - 180,310 2,188,182 - - 16,402 - 487,188 2,126,427 - - 735 4,537,191 1,828,818 63,167,973 - - 258,495 4,731,642 2,537,627 73,066,408 1,118,793 6,565 3,454,110 - - 885,000 - 660 315,129 - 16,776 1,001,494 - 3,500,000 3,500,000 - - 6,699,941 - 7,133,015 21,860,820 697,779 - 697,779 1,816,572 10,657,016 38,414,273 $ 6,548,214 $ 13,194,643 $ 111,480,681 27 COUNTY OF WELD STATE OF COLORADO Reconciliation of Total Governmental Fund Balances To Statement of Net Assets December 31, 2004 Total governmental fund balances $ 38,414,273 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 230,148,287 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 (1,899,736) 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 13,581,234 Internal services used by Enterprise Fund (111,723) Net assets of governmental activities $280,132,335 See accompanying notes to the basic financial statements 28 t1 :4 11Illic COLORADO 29 COUNTY OF WELD STATE OF COLORADO Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended December 31, 2004 Public Works Social General Fund Fund Services Fund REVENUES: Taxes $ 37,323,306 $ 11,778,138 $ 5,009,760 Licenses and permits 1,544,426 290,423 - Intergovernmental 5,338,252 9,487,384 11,558,486 Fines and forfeitures 60,988 - - Charges for services 2,359,140 1,874,862 - Miscellaneous 4,876,311 113,467 3 Fees 6,366,224 1,088,604 - Total Revenues 57,868,647 24,632,878 16,568,249 EXPENDITURES: Current: General government 20,472,267 - - Public Safety 27,122,260 - - Public Works 1,373,479 21,361,216 - Public health and welfare 1,600,632 - 15,693,646 Culture and recreation 404,271 - - Economic assistance - - - Capital outlay 273,839 41,771 - Debt Service 358,054 - - Intergovernmental - - - Total Expenditures 51,604,802 21,402,987 15,693,646 Excess of Revenues Over(Under) Expenditures 6,263,845 3,229,891 874,603 Other Financing Sources (Uses): Transfers - in - - 26,250 Transfers- out 3,117,281 - - Total Other Financing Sources (Uses) (3,117,281) - 26,250 Net Changes in Fund Balance 3,146,564 3,229,891 900,853 Fund Balances at Beginning of Year 5,069,675 10,771,393 1,916,449 Fund Balance at End of Year $ 8,216,239 $ 14,001,284 $ 2,817,302 See accompanying notes to the basic financial statements 30 Capital Other Total Human Expenditures Governmental Governmental Services Fund Fund Funds Funds $ - $ 2,275,791 $ 1,311,299 $ 57,698,294 - - - 1,834,849 11,420,789 50,000 2,797,771 40,652,682 - 8,550 69,538 660,707 - 2,451,110 7,345,819 204,944 81,155 54,051 5,329,931 - - 3 7,454,831 12,286,440 2,406,946 6,622,784 120,385,944 94,049 (1) 20,566,315 - - 353,085 27,475,345 - - - 22,734,695 - - 5,751,831 23,046,109 - - 602,937 1,007,208 12,450,198 - - 12,450,198 4,744,767 1,862,853 6,923,230 - - - 358,054 12,450,198 4,838,816 8,570,705 114,561,154 (163,758) (2,431,870) (1,947,921) 5,824,790 12,351 750,000 3,510,552 4,299,153 - - 1,181,872 4,299,153 12,351 750,000 2,328,680 - (151,407) (1,681,870) 380,759 5,824,790 1,057,267 3,498,442 10,276,257 32,589,483 $ 905,860 $ 1,816,572 $ 10,657,016 $ 38,414,273 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 31,2004 Net changes in fund balances-total governmental funds $ 5,824,790 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 10,348,478 Depreciation expense (18,192,366) Excess of depreciation over capital outlay (7,843,888) 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 (37,770) 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. (22,951) Internal services used by Enterprise Funds (7,698) Change in assets of governmental activities $ (2,087,517) See accompanying notes to the basic financial statements 32 COUNTY OF WELD STATE OF COLORADO Statement of Net Assets Proprietary Funds December 31,2004 Business-type Governmental Activity Activities Paramedic Enterprise Internal Fund Service Funds ASSETS Cash and short-term investments $ 38,724 $ 4,818,505 Property taxes receivable - 766,549 Receivables(net of allowance for uncollectibles): Accounts 1,005,509 51,895 Due from other County funds - 442,155 Inventory - 29,327 Other assets 28,645 64,445 Total Current Assets 1,072,878 6,172,876 Capital Assets: Land 48,496 - Improvements other than buildings 55,728 460,679 Buildings 656,305 8,975,977 Machinery and equipment 1,035,066 23,753,477 Accumulated depreciation (931,170) (17,023,456) Total Capital Assets 864,425 16,166,677 Total Assets 1,937,303 22,339,553 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable 56,227 350,640 Accrued liabilities 247,049 686,861 Due to other County funds 1,086 22,157 Deferred revenue - 1,308,413 Advances from general fund 885,000 - Total Current Liabilities 1,189,362 2,368,071 Noncurrent liabilities: Due within one year - 400,000 Due in more than one year - 5,990,248 Total noncurrent liabilities - 6,390,248 Total liabilities 1,189,362 8,758,319 Net Assets Invested in capital assets, net of related debt 864,425 9,776,429 Restricted for: Workers'compensation - 616,777 Unrestricted (116,484) 3,188,028 Total net assets $ 747,941 $ 13,581,234 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. 111,723 Net assets of business-type activities $ 859,664 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 31,2004 Business-type Governmental Activity Activities Paramedic Enterprise Internal Fund Service Funds Operating revenues: Contributions $ - $ 203,425 Charges for services 9,971,559 6,159,468 Total operating revenues 9,971,559 6,362,893 Operating expenses: Bad debt expense 5,991,313 - Personnel services 2,927,436 113,611 Supplies 257,267 1,245,810 Purchased services 369,101 2,389,195 Insurance and bonds - 398,490 Depreciation 192,212 2,334,729 Other 8,517 103,093 Claims - 1,084,378 Total operating expenses 9,745,846 7,669,306 Operating income(loss) 225,713 (1,306,413) Nonoperating revenues(expenses): Taxes - 548,157 Miscellaneous 2,955 740,804 Interest income - 30,908 Fees 4,536 Federal grant 50,824 - State Grant - 28,709 Gain(loss)on disposition of assets 389 139,650 Judgements and damages - 89,738 Net increase(decrease)in fair market value - - Interest expense - (360,133) Total nonoperating revenues(expenses) 58,704 1,217,833 Income(loss)before contributions or transfers 284,417 (88,580) Capital contributions - 65,629 Changes in net assets 284,417 (22,951) Total net assets beginning of year 463,524 13,604,184 Total net assets at end of year 747,941 $ 13,581,233 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. 7,698 Change in net assets of business-type activities $ 755,639 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 31,2004 Business-type Governmental Activity Activites Enterprise Fund Internal Paramedic Services Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers $ 3,917,857 $ 475,468 Cash flows from internal customers - 6,892,271 Cash payments to external suppliers for goods and services (496,736) (4,926,310) Cash payments to internal suppliers for goods and services (305,911) (167,174) Cash payments to employees for services (2,821,551) (278,019) Miscellaneous revenues 2.750 Net cash provided(used)by operating activities 293.659 1,998,986 CASHFLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes - 548,753 Cash transfers to/from General Fund (100,000) - Grants 50,824 - Judgements/damages/losses - 89738 Net cash provided by noncapital financing activities (49.176) 638.491 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (227,962) (2,046,434) Principal paid on long-term debt - (378,354) Interest paid - (360,132) Proceeds from sale of capital assets 6,000 320,321 Cash for future capital - - Net cash provided(used)for capital and related Financing activities (221.962) (2,464,599) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments - 30.907 Net Increase(decrease)in Cash and Cash Equivalents 22,521 203,785 Cash and Cash Equivalents at Beginning of Year 16.203 4,614,720 Cash and Cash Equivalents at End of Year $ 38 724 $ 4 818.50$ Reconciliation of operating income to net cash provided(used)by operating activities: Operating income(loss) $ 233,203 $ (568,360) Adjustments to reconcile operating income to net cash provided(used)by operating activities: Depreciation expense 192,212 2,334,728 Miscellaneous revenue 2,750 Change in assets and liabilities (Increase)decrease in accounts receivable (166,139) (247,609) (Increase)decrease in due from other funds - (223,847) (Increase)decrease in inventories - (5,071) (Increase)decrease in other assets (28,645) (61,471) Increase(decrease)in accounts payable 45,630 (62,749) Increase(decrease)in accrued liabilities 18,717 92,406 Increase(decrease)in other liabilities (1,319) 11,832 Increase(dedrease)in deferred revenue - 726.377 Total adjustments 60,456 2.567,346 Net cash provided by operating activities $ 293 659 $ 1 998 98Q Noncash investing,capital,and financing activities: Contributions of capital assets from(to)government $ 5,611 $ 58,213 Capital asset trade-ins - $ 69,623 See Accompanying notes to the basic financial statements 35 COUNTY OF WELD STATE OF COLORADO Statement of Fiduciary Net Assets Fiduciary Funds December 31, 2004 Weld County Agency Retirement Funds Plan ASSETS Cash and cash equivalents $ 3,740,126 $ - Accounts Receivables (net of allowances for uncollectables): 188 887 Prepaid expense - 300 Restricted assets Cash - 813,564 Corporate Bonds - 22,523,166 Common Stock - 66,275,984 US Property Fund - 9,380,739 Total assets $3,740,314 $98,994,640 LIABILITIES AND NET ASSETS Accounts payable $ 91,049 $ 31,739 Due to other governments 3,649,265 - Total Liabilities $ 3,740,314 $ 31,739 NET ASSETS Held in trust for pension benefits and other purposes $98,962,901 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, 2004 Weld County Retirement Plan Additions: Employer contributions $ 2,234,518 Employee contributions 2,314,230 Earnings on investments 2,684,830 Net appreciation in fair market value of investments 7,873,790 Total Additions 15,107,368 Deductions: Actuarial/Trustee fees 182,676 Benefit payments 5,154,243 Supplies 6,048 Total Deductions 5,342,967 Change in net assets 9,764,401 Net assets- beginning 89,198,500 Net assets -ending $ 98,962,901 See accompanying notes to the basic financial statements 37 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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, 2004 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. 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. The Local Improvement Districts 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 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. 39 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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 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. 40 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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. 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. 41 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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 fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from non exchange transactions or ancillary activities. C. Measurement Focus Government-wide, Proprietary and Fiduciary Fund Financial Statements The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus. The government-wide and proprietary fund financial statements are reported using the accrual basis of accounting. 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 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 enouth therafterto 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 42 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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 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. 43 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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 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 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 prior notice or penalty, equity in the pool is also deemed to be a cash equivalent. 44 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 2. Property Taxes: Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on December 15, 2004, 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. 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. 45 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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 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 46 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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, 2004, include $220,449 $2, 114, 868 and $1, 118,793 for the General Fund, Special Revenue Funds, and Capital Expenditures Funds, respectively, for a total of $3,454, 110. Reserved for Other Assets: These reserves are established to record all prepaid items. Recorded reserves at December 31, 2004, are $313, 393 and $1, 736 for the General Fund and Special Revenue Funds respectively, for a total of $315, 129. Reserved for Inventories: These reserves are established to record the total level of supply inventories. Recorded reserves at December 31, 2004, are $97,456 and $904, 038 for General Fund and Special Revenue Funds respectively, for a total of $1, 001,494. Reserved for Advances: These reserves are established to record the total advance between funds. Reserve at December 31, 2004, is $885, 000, all recorded in General Fund. 47 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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, 2005 . 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 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 2004, two supplemental appropriation ordinances were enacted. Budget amounts reported in the 48 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 accompanying financial statements reflect these supplemental appropriations. B. Excess of expenditures over appropriations Paramedic Fund (an enterprise fund) has excesses of expenditures over appropriations. These over expenditures were funded by greater than anticipated revenues and from advances from the General Fund, and will be corrected in 2005. 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. Weld Finance Corporation (an internal service fund) has a deficit balance at December 31 of $908, 097 . 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 pool is under the custody of the County Treasurer. Several of the County' s funds also hold investments on their own account, some of which are restricted assets. Each fund' s share of the cash and investment pool, as well as non-pooled cash and investments, 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 pooled cash account, the overdraft is reported as an interfund receivable/advance to other fund in the General Fund with an offsetting interfund payable in the overdrawn fund. 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 49 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 public depositories having their principal offices within the State of Colorado. The bank balances of the County's pooled and non-pooled deposits are categorized by level of 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, 2004 are as follows: Category Bank Carrying A B Balance Amount Primary Government: Pooled Deposits $ 100,000 $ 16,179,692 $ 16,279,692 $ 17,341,513 Demand Deposits Certificates of Deposit 1,100,000 11,352,727 12,452,727 12,452,727 Total Pooled Deposits $ 1,200,000 $ 27,532,419 $ 28,732,419 $ 29,794,240 Total Deposits $ 1,200,000 $ 27.532,419 $ 28,732,419 $ 29,794,240 Component Unit: Pooled Deposits Certificates of Deposit $ 1,200,000 $ 27,532,419 $ 28,732.419 $ 29,794,240 All deposits made by the County Treasurer in 2004 were done so in eligible public depositories, as defined by the Public Deposit Protection Act of 1989. Investments: 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. The County may hold investments in the following local government investment pools the Colorado Surplus Asset Fund Trust (CSAFE) , the Colorado Diversified Trust (CDT) , and the Colorado Local Government Liquid Asset Trust (COLOTRUST) , which are 2a7-like investment pools. At December 31, 2004 there were no funds in these pools. Investments are valued at amortized cost with each share valued at $1. The investment pools are routinely monitored by the Colorado Division of Securities with regard to operations and investments. All securities owned by each pooled investment are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian' s internal records identify the investments owned by each pool investor. The Weld County 50 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 Retirement Plan contractually delegates investment management to investment managers. The County' s investments are categorized by level of 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 in local government investment pools and money market funds cannot be categorized by level of risk because they are not evidenced by specific securities due to the nature of an investment pool. The retirement plan and deferred compensation plan investments also cannot be categorized since the specific securities belonging to Weld County cannot be identified. Fair Value/ Category Carrying B Amount Cost Primary Government: Pooled Investments: U.S. Government Agency Notes $ 26,069,308 $ 26,069,308 $ 26,134,991 Local Government Investment 2,541,846 2,541,846 Total pooled investments $ 28,611.154 $ 28,676,837 Non-Pooled Investments: Money Market Funds - Finance $ 1,249 $ 1,249 Money Market Funds - Retirement 557,557 557,557 Mutual Funds - Retirement Plan 98,179,889 88,112,959 Total non-pooled investments $ 98,738,695 $ 88.671,765 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 51 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 balances are generally expected to be repaid within one year of the financial statement date. Receivable Fund Payable Fund Amount General Fund Public Works $ 300 Social Services Fund 157,547 Human Services Fund 2, 143 Non-Major Governmental 368,509 Internal Service Funds 11 Enterprise Fund 68 Public Works Social Services Fund 146, 981 Non-Major Governmental 90,345 General Fund 40, 119 Human Services Social Services Fund 145,367 Non-Major Governmental General Fund 338, 173 Social Services Fund 2,448 Internal Service General Fund 89, 827 Public Works 224, 007 Social Services Fund 27, 094 Human Services Fund 49, 728 Non-Major Governmental 28, 336 Enterprise Fund $ 1,018 $1,762,021 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 52 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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 26,250 750,000 $2,328,680 $3,117,281 Non-Major 00 $ 00 $ 00 1,181,872 1,181,872 Total $ 12,351 $ 26,250 $ 750,000 $3,510,552 $4,299,153 The County also had noncash transfers. Contribution of capital assets from (to) government: Paramedic Services $ (5, 611) , Internal Service Funds $ (58,213) . Note 5 - Allowance for Uncollectible Accounts Receivable: The allowance for uncollectible receivables consists of the following a December 31, 2004 : Allowance for Fund Type Uncollectible General $ 349, 840 Special Revenue 100, 908 Capital Expenditures 22, 655 Enterprise 843, 561 Internal Service 5, 040 Total $ 1, 322, 004 53 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31,2004 Note 6-Capital Assets: Capital asset activity for the year ended December 31,2004,was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental activites Capital Assets not being depreciated Land and water rights $ 5,643,991 $ 2,000,095 $ - $ - $ 7,644,086 Gravel Roads 6,994,195 11,188 - 7,005,383 Construction in progress 350.652 3,292,385 321,310 - 3,321,727 Total capital assets not being depreciated 12,988,838 5,303,668 321,310 - 17,971,196 Capital assets being depreciated: Buildings 67,868,137 1,466,954 69,335,091 Improvements 4,712,372 139,528 - - 4,851,900 Equipment 35,142,480 2,511,841 1,651,204 - 36,003,117 Infrastructure 304,939,264 748.879 19.318,024 - 286,370,119 Total capital assets being depreciated 412.662,253 4,867,202 20,969,228 - 396,560,227 Less accumulated depreciation Buildings 16,890,610 1,569,094 - - 18,459,704 Improvements 1,176,327 150,574 - - 1,326,901 Equipment 19,257,598 3,206,321 1,395,285 - 21,068,634 Infrastructure 133,793,077 13,193.164 19,625.020 - 127.361,221 Total accumulated depreciation 171,117,612 18,119,153 21,020,305 - 168,216,460 Total capital assets being depreciated,net 241,544,641 (13,251,9511 (51,0771 - 228.343.767 Governmental activities capital assets,net $ 254533 479 $(7 948 283, $ 270 233 $ - $ 246 314 963 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 1,072,872 222,352 260.158 - 1,035,066 Total capital assets being depreciated 1,784,905 222,352 260,158 - 1,747,099 Less accumulated depreciation Buildings 246,552 21,566 - - 268,118 Improvements 32,870 3,427 - - 36,297 Equipment 719,694 167.219 260,158 - 626,755 Total accumulated depreciation 999,116 192,212 260,158 - 931,170 Total capital assets being depreciated, net 785,789 30,140 - - 815.929 Business-type activities capital assets,net $ 834 285 $ 30 140 $ - $ - $ 864 425 54 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 1, 137, 367 Public safety 1, 589, 669 Streets and highways 14, 602, 348 Economic assistance 323, 865 Culture and recreation 11, 943 Health and welfare 453, 961 Total depreciation expense-governmental activities $ 18, 119, 153 Business-type activities Paramedic Service $ 192,212 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 dental and vision insurance benefits to employees, which are funded by employee contributions. These activities are accounted for in the Health Insurance Fund, an internal service fund. Workers' Compensation coverage is partially self-insured, with insurance coverage of a $350, 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: 55 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 2003 2004 Unpaid Claims - Beginning $ 361,496 $ 506,807 Incurred Claims (Includes IBNR'S) 981,805 439,207 Claims Paid (836,494) (355,597) Unpaid Claims - Ending $ 506,807 $ 590,417 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: 2003 2004 Unpaid Claims - Beginning $ 95,687 $ 76,695 Incurred Claims (Includes IBNR's) 256,770 121,847 Claims Paid (275,762) (114,459) Unpaid Claims - Ending $ 76,695 $ 84,083 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. 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 $489, 668 for all types of leases. These expenditures were made primarily from the General, Public Works and Social Services Funds. 56 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 Note 9 - Long-Term Debt: Long-term debt consists of the following at December 31, 2004 : Internal Service Fund: Certificates of participation $ 6,410,000 Less uncredited discount 19,752 Certificates of participation - net $ 6,390,248 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 7.30% 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 . Future debt service requirements for the certificates of participation are as follows : Year Principal Interest Total 2005 400, 000 341, 893 741, 893 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 2010-2014 2, 840, 000 857, 815 3, 697, 815 2015-2016 1,365, 000 113,575 1,478, 575 Total $ 6,410, 000 $ 2,470, 885 $ 8, 880, 885 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 $89, 802, 552 at December 31, 2004. 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 57 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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, 2004 totaled $7, 101, 894 . Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2004, was as follows : Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Certificates of participation $ 6,790,000 $ 0 $ 380,000 $ 6,410,000 $ 400,000 Compensated absences General Fund 1,072,570 114,774 114,138 1,073,206 46,248 Public Works 330,118 8,602 8,034 330,686 10,914 Social Services 333,028 29,957 7,456 355,529 22,023 Public Health 126,250 14,065 0 140,315 9,702 Total governmental $ 8,651,966 $._,67,398 $_ 509,628 $ 8,009,736 $__4.88,887 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 6% of their annual covered payroll. The County is required to contribute at an actuarially determined rate; the current rate is 6% of annual covered payroll. 58 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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 $ 3,125,337 Interest on net pension obligation (106,878) Annual Pension Cost 3,018,459 Contributions made 2,234,518 Decrease in net pension asset 783,941 Net pension obligation (asset) beginning of year (1,335,980) Net pension obligation (asset) end of year $ (552,039) The annual required contribution for the current year was determined as part of the January 1, 2004 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, 2004, was 30 years. Three-Year Trend Information: Fiscal Year Annual Percentage of Net Pension Ended Pension APC Contributed Obligation Cost (APC) (Asset) December 31, 2002 1,864,733 112.3% (1,747,883) December 31, 2003 2,594,575 84.1% (1,335,980) December 31, 2004 3,018,459 74.0% (552,039) Note 11 - Commitments and Contingencies: Commitments At year-end there were projects under construction with commitments of $1, 112, 000 including $687,400 for Centennial Center Courts and Work Release, $196, 000 for the North Jail Special Medical Unit, $78,200 for the Downtown Parking Lot and $150,400 for the New Raymer Grader Shed. 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. 59 COUNTY OF Weld County STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2004 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. 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 $ 908,244 Liabilities 5, 738 Fund Balance 902,506 Additions 1,258,257 Deductions 1, 037, 682 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 754% Employer/Employee 2007 8% Employer/Employee In 2004 there was no current contribution since there was an over funding that occurred in 2003 . Regular contribution will be made starting in 2005 . 60 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2004 Note 13 —Non-Cash Activity in Social Services Fund Schedule of EBT Authorizations, Warrant Expenditures and Total Expenditures For the Year Ended December 31, 2004 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 3,186,609 4,925 116,645 3,303,254 121,570 1,453,362 0 112,860 1,566,222 112,860 Low-Income Energy Assistance Program Temporary Assistance for 1,287,099 535,499 1,568,439 2,855,538 2,103,938 Needy Families Administration 17,057 3,411 2,566,188 2,583,245 2,569,599 Trails/Child Welfare 11,625,483 2,675,395 4,946,385 16,571,868 7,621,780 Core Services 589,579 19,271 236,894 826,473 256,165 Aid to the Needy Disabled 583,731 76,024 (45,748) 537,983 30,276 1,839,286 1,839,286 1,839,286 IV-D Administration 0 0 CHATS/Child Care 3,479,442 459,986 392,871 3,872,313 852,857 General Assistance 0 0 185,315 185,315 185,315 Subtotal 22,222,362 3,774,511 11,919,135 34,141,497 15,693,646 Food Assistance 8,978,354 0 0 8,978,354 0 Grand Total 31,200,716 3,774,511 11,919,135 43,119,851 15,693,646 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 expenditure on the Social Services Fund—Statement of Revenues,Expenditures and Changes in Fund Balance. 61 rgiatr IIMc COLORADO 62 Required Supplementary Information hf e �f1 2a ? Vs. c ; a COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2004 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)/C1 1/1/97 $52,113,121 $ 56,478,086 $ 4,034,963 92.8% $22,728,155 17.8% 1/1/98 $58,256,392 $ 61,714,771 $ 3,458,379 94.4% $24,902,505 13.9% 1/1/99 $64,835,754 $ 68,518,936 $ 3,683,182 94.6% $27,741,047 13.3% 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% 63 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. 2002 Condition Miles of Road %of Total Good 2249.90 93.0% Fair 159.25 6.6% Poor 9.75 0.4% Comparison of Estimated-to-Actual Maintenance/Preservation 2002 2003 2004 2005 Estimated $1,450,400 $1,464,400 $1,643,167 $1,800,000 Actual $1,338,087 $1,521,710 $1,785,000 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. 64 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, 2004 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes $ 36,954,844 $ 36,954,844 $ 39,057,336 $2,102,492 Severance tax 25,000 25,000 50,524 25,524 Tobacco products - - 104,937 104,937 Penalties & interest - - 87,656 87,656 Property tax adjustment - - (1,977,147) (1,977,147) Total Taxes 36,979,844 36,979,844 37,323,306 343,462 Licenses and Permits Liquor licenses 4,000 4,000 4,305 305 Planning permits 370,000 440,000 431,882 (8,118) Building permits 700,000 965,000 978,090 13,090 Electrical permits 100,000 100,000 130,149 30,149 Total Licenses and Permits 1,174,000 1,509,000 1,544,426 35,426 Intergovernmental: Federal grants 597,898 766,898 215,418 (551,480) Payment in lieu of taxes 2,000 2,000 4,168 2,168 State grants 2,495,436 3,577,436 4,426,422 848,986 Other governmental units 29,890 29,890 96,003 66,113 Cities and towns 633,645 665,815 596,241 (69,574) Total Intergovernmental 3,758,869 5,042,039 5,338,252 296,213 Charges for Service: Plan checking fees 300,000 350,000 354,585 4,585 Charges for services 1,595,597 1,610,597 1,912,534 301,937 Sale of supplies 77,900 77,900 77,807 (93) Parking 14,500 14,500 14,214 (286) Total Charges for Services 1,987,997 2,052,997 2,359,140 306,143 Fines and Forfeitures: Property forfeitures/evidence 8,000 8,000 37,050 29,050 Fines (drunk drivers) 30,000 30,000 23,938 (6,062) Total Fines and Forfeitures 38,000 38,000 60,988 22,988 Miscellaneous: Miscellaneous 1,282,103 1,882,103 2,717,333 835,230 Interest 1,000,000 1,240,000 1,497,871 257,871 Rents from buildings 138,706 138,706 142,399 3,693 Royalties 150,000 350,000 506,152 156,152 Total Miscellaneous 2,570,809 3,610,809 4,863,755 1,252,946 65 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, 2004 Budgeted Original Final Actual Variance REVENUES (CONTINUED) Fees: Fee account 5,332,000 6,232,000 6,218,963 (13,037) Treasurer's fees 30,000 330,000 100,061 (229,939) Cable fees 40,000 48,000 47,200 (800) Total Fees 5,402,000 6,610,000 6,366,224 (243,776) Total Revenues 51,911,519 55,842,689 57,856,091 2,013,402 EXPENDITURES General Government: Office of the Board 545,716 571,716 566,805 4,911 County Attorney 606,811 674,811 670,666 4,145 Public Trustee 7,000 7,000 - 7,000 Planning and zoning 809,726 825,726 795,736 29,990 Clerk to the Board 168,618 188,618 174,936 13,682 County Clerk 717,357 774,857 838,090 (63,233) Elections and registration 998,941 1,078,941 1,039,419 39,522 Motor vehicle 1,233,500 1,288,500 1,275,398 13,102 County Treasurer 577,686 602,686 595,148 7,538 County Assessor 2,057,438 2,079,438 2,061,821 17,617 Maintenance of buildings/grounds 3,436,951 3,976,951 3,403,067 573,884 County Council 26,647 26,647 12,385 14,262 District Attorney 3,233,508 3,278,508 3,206,066 72,442 Juvenile Diversion Grant - - 1,414 (1,414) Victim Assistance 310,513 351,513 784,171 (432,658) Financial administration 335,265 367,265 327,623 39,642 General accounting 567,539 582,539 498,918 83,621 Purchasing 112,228 112,228 107,643 4,585 Personnel 449,236 524,236 472,589 51,647 Geographical Information Systems 273,601 273,601 79,270 194,331 Capital - - 18,764 (18,764) Computer Services 1,531,107 1,531,107 2,255,984 (724,877) Printing and Supply 261,755 301,755 236,598 65,157 Total General Government 18,261,143 19,418,643 19,422,511 (3,868) (CONTINUED) 66 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, 2004 Budgeted Original Final Actual Variance EXPENDITURES (CONTINUED) Public Safety Sheriff administration 1,088,188 1,238,188 1,207,105 31,083 Crime control and investigations 4,814,287 4,978,007 5,674,245 (696,238) Traffic control 469,068 469,068 503,115 (34,047) Task force 149,082 149,082 159,805 (10,723) Regional forensic laboratory 167,505 183,505 171,177 12,328 Communications services 1,235,164 1,354,290 1,319,315 34,975 Communication system development - 10,916 183,452 (172,536) E-911 administration 700 700 - 700 Criminal justice 1,489,438 1,493,579 1,593,801 (100,222) County Coroner 486,001 506,001 484,231 21,770 Correctional administration 10,167,692 10,485,916 10,485,099 817 Community correction 2,877,284 2,877,284 2,921,125 (43,841) Building inspection 1,153,674 1,153,674 1,025,239 128,435 Office of emergency management 102,036 102,036 79,435 22,601 Waste water management 9,748 9,748 8,835 913 Animal control 235,900 238,900 242,536 (3,636) Pest/weed control 322,748 368,748 336,932 31,816 West Nile 635,818 722,325 722,324 1 Solid waste - - 4,489 (4,489) Total Public Safety 25,404,333 26,341,967 27,122,260 (780,293) Public Works: General engineering 1,292,473 1,321,019 836,709 484,310 Extension services 360,571 360,571 331,363 29,208 Veteran office 60,883 60,883 55,861 5,022 Airport 4,167 74,167 65,187 8,980 Total Public Works 1,718,094 1,816,640 1,289,120 527,520 Public Health and Welfare: Mental health 135,875 135,875 120,875 15,000 Developmentally disabled 46,125 46,125 46,125 - Seniors program 12,500 12,500 12,500 - Economic development 100,000 1,459,235 1,412,382 46,853 A Kid's Place 8,250 8,250 8,750 (500) Total Public Health and Welfare 302,750 1,661,985 1,600,632 61,353 Culture and Recreation: Missile site park 58,393 58,393 52,091 6,302 County fair 288,661 288,661 352,180 (63,519) Total Culture and Recreation 347,054 347,054 404,271 (57,217) 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, 2004 Budgeted Original Final Actual Variance EXPENDITURES (CONTINUED) Miscellaneous: Other 352,000 743,800 669,756 74,044 Building rents 715,000 1,715,000 464,359 1,250,641 Total Miscellaneous 1,067,000 2,458,800 1,134,115 1,324,685 Capital Outlay: Capital purchases 2,030,259 1,927,679 273,839 1,653,840 Debt Services: Capital lease 360,133 360,133 358,054 2,079 Total Expenditures 49,490,766 54,332,901 51,604,802 2,728,099 Other Financing Source (Use) Transfers - In: Transfers - Out: Appropriation Grants-In-Aid 2,314,781 3,064,781 3,117,281 (52,500) Total Other Financing Sources (Uses) (2,314,781) (3,064,781) (3,117,281) (52,500) Net Change in Fund Balance 105,972 (1,554,993) 3,134,008 4,689,001 Fund Balance at Beginning of Year 5,069,675 5,069,675 5,069,675 - Fund Balance at End of Year $ 5,175,647 $ 3,514,682 $ 8,203,683 $4,689,001 68 ittr, Wilk 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, 2004 Budgeted Original Final Actual Variance REVENUES: Taxes: General property taxes $ 4,992,602 $ 4,992,602 $ 4,972,088 $ (20,514) Specific ownership taxes 5,750,000 5,750,000 6,794,368 1,044,368 Penalties & Interest - - 11,682 11,682 Total Taxes 10,742,602 10,742,602 11,778,138 1,035,536 Licenses and Permits Moving permits 175,000 175,000 290,423 115,423 Intergovernmental: Mineral leasing 72,000 (26,000) 169,824 195,824 Grazing act 10,000 (82,000) 135,957 217,957 Payment in lieu of taxes 50,000 50,000 34,815 (15,185) Grants 1,200,000 300,000 534,310 234,310 Motor vehicle registration fees 320,000 320,000 329,072 9,072 Highway user tax fund 8,140,000 8,140,000 8,283,406 143,406 Total Intergovernmental 9,792,000 8,702,000 9,487,384 785,384 Charges for Services: Charges for services - 633,000 1,874,862 1,241,862 Fees: Other fees - - 1,088,604 1,088,604 Miscellaneous: Earnings on deposits - - 54,519 54,519 Special assessments - - 28,139 28,139 Miscellaneous 2,724,433 2,724,433 30,809 (2,693,624) Gain on sale of assets - - - - Recovery of losses 1,000 1,000 - (1,000) Total Miscellaneous 2,725,433 2,725,433 113,467 (2,611,966) Total Revenues 23,435,035 22,978,035 24,632,878 1,654,843 70 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, 2004 Budgeted Original Final Actual Variance EXPENDITURES Public Works Bridge construction 2,659,911 2,769,911 2,444,099 325,812 Maintenance of condition 3,220,174 3,390,174 3,660,149 (269,975) Maintenance support 1,701,192 1,761,192 1,636,807 124,385 Trucking division 3,130,953 3,180,953 2,977,145 203,808 Mining division 1,769,589 1,854,089 1,578,595 275,494 Administration 804,351 837,351 1,152,582 (315,231) Other public works 9,304,612 11,673,053 6,563,956 5,109,097 Total Public Works 22,590,782 25,466,723 20,013,333 5,453,390 Intergovernmental: Grants-in-aid to cities/towns 1,359,143 1,359,143 1,347,883 11,260 Capital outlay 12,000 12,000 41,771 (29,771) Total Expenditures 23,961,925 26,837,866 21,402,987 5,434,879 Other Financing Sources (Uses): Transfers - Out: Total Other Financing Sources (Uses) - - - - Net Change in Fund Balance (526,890) (3,859,831) 3,229,891 7,089,722 Fund Balances at Beginning of Year 10,771,393 10,771,393 10,771,393 - Fund Balances at End of Year $ 10,244,503 $ 6,911,562 $ 14,001,284 $ 7,089,722 71 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, 2004 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes $ 5,000,000 $ 5,000,000 $ 4,998,794 $ (1,206) Penalties & Interest - - 10,966 10,966 Total Taxes 5,000,000 5,000,000 5,009,760 9,760 Intergovernmental: Welfare 11,158,615 11,158,615 11,558,486 399,871 Miscellaneous: Earnings on deposits - - 3 3 Total Miscellaneous - - 3 3 Total Revenues 16,158,615 16,158,615 16,568,249 409,634 EXPENDITURES Public Health and Welfare: Administrative- regular 2,959,532 2,959,532 2,296,132 663,400 Administrative - IV-D 1,414,500 1,414,500 1,839,286 (424,786) Employment first 270,000 270,000 273,467 (3,467) General assistance 132,000 132,000 185,315 (53,315) TANF 1,485,083 1,485,083 2,103,938 (618,855) AND - State 90,000 90,000 30,276 59,724 Child welfare 6,550,000 6,550,000 7,621,780 (1,071,780) Daycare 1,700,000 1,700,000 852,857 847,143 72 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, 2004 Budgeted Original Final Actual Variance EXPENDITURES (CONTINUED): OAP -A 10,000 10,000 121,570 (111,570) Core services 1,377,500 1,377,500 256,165 1,121,335 Administrative- LEAP 130,000 130,000 113,660 16,340 LEAP - Program - - (800) 800 Total Public Health and Welfare 16,118,615 16,118,615 15,693,646 424,969 Capital Outlay 25,000 25,000 - 25,000 Total Expenditures 16,143,615 16,143,615 15,693,646 449,969 Other Financing Sources (Uses): Transfers - In: - - 26,250 26,250 Total Other Financing Sources (Uses) - - 26,250 26,250 Net Change in Fund Balance 15,000 15,000 900,853 885,853 Fund Balances at Beginning of Year 1,916,449 1,916,449 1,916,449 - Fund Balances at End of Year $ 1,931,449 $ 1,931,449 $ 2,817,302 $ 885,853 73 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 31,2004 Budgeted Original Final Actual Variance REVENUES Intergovernmental: Federal grants $ 9,191,500 $ 9,947,000 $ 10,049,611 $ 102,611 State grants 1,429,500 1,429,500 1,371,178 (58,322) Total Intergovernmental 10,621,000 11,376,500 11,420,789 44,289 Charges for Services: Charges for services 620,000 620,000 660,707 40,707 Fees 10,000 10,000 - (10,000) Total Charges for Services 630,000 630,000 660,707 30,707 Miscellaneous: Donations from private sources 150,000 150,000 166,516 16,516 Other revenue 20,000 20,000 38,428 18,428 Total Miscellaneous 170,000 170,000 204,944 34,944 Total Revenues 11,421,000 12,176,500 12,286,440 109,940 EXPENDITURES Economic Assistance: Human resources general fund - - 206,404 (206,404) Head start 3,080,000 3,080,000 3,025,751 54,249 Migrant head start 2,230,000 2,257,000 2,256,223 777 Preschool program 120,000 120,000 113,094 6,906 Job service 620,000 620,000 769,345 (149,345) Summer job hunt 20,000 25,000 24,999 1 Jobs/New directions 40,000 40,000 44,692 (4,692) Employment first 195,000 195,000 152,685 42,315 YCPI - 60,000 43,448 16,552 TANF 457,500 582,500 638,065 (55,565) Welfare to work - 16,000 15,521 479 WIA administration 80,000 80,000 98,057 (18,057) WIA adult programs 230,000 400,000 427,528 (27,528) WIA youth programs 320,000 320,000 203,142 116,858 JTPA I'S 20,000 40,000 48,621 (8,621) National emergency 40,000 40,000 26,713 13,287 WIA planning 20,000 110,000 95,391 14,609 WIA statewide activities 20,000 40,000 27,670 12,330 WIA dislocated worker 250,000 330,000 285,602 44,398 Human resources lab pool 250,000 250,000 181,412 68,588 Ul training program 140,000 140,000 152,902 (12,902) One stop - 15,000 21,219 (6,219) Family support program - 11,000 12,173 (1,173) AAA administration 67,351 72,351 65,736 6,615 74 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 31,2004 Budgeted Original Final Actual Variance EXPENDITURES(CONTINUED): OAA title III-B 235,000 235,000 227,308 7,692 OAA title III-C1 congregate 424,000 424,000 392,885 31,115 OAA title III-C2 50,000 70,000 44,864 25,136 OAA in home support 15,000 15,000 16,529 (1,529) AAA elder abuse 2,500 2,500 1,928 572 MA ombudsman 4,000 5,500 5,257 243 Single entry point 500,000 500,000 498,300 1,700 FTA 120,000 120,000 93,000 27,000 Wellspring/Health fund - 10,000 - 10,000 MA case management 16,000 16,000 17,898 (1,898) Transportation - - 75,425 (75,425) AAA state funds 180,000 180,000 195,766 (15,766) Medicaid transportation 103,000 103,000 58,490 44,510 Supplemental foods 1,184,000 1,184,000 1,476,759 (292,759) Part E family caregiver support 110,000 190,000 88,971 101,029 CSBG 290,000 290,000 320,425 (30,425) Total Economic Assistance 11,433,351 12,188,851 12,450,198 (261,347) Capital Outlay: Total Capital Outlay - - - - Total Expenditures 11,433,351 12,188,851 12,450,198 (261,347) 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 - - (151,407) (151,407) Fund Balances at Beginning of Year 1,057,267 1,057,267 1,057,267 - Fund Balances at End of Year $ 1,057,267 $ 1,057,267 $ 905,860 $ (151,407) 75 ‘a Wilk COLORADO 76 Supplemental Information /'. ' o IV,•, 1 r` t' COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2004 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 77 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2004 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. 78 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2004 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. 79 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2004 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 80 i&ftri Mile COLORADO 81 COUNTY OF WELD STATE OF COLORADO Combining Balance Sheet Non-Major Governmental Funds December 31, 2004 Conservation Contingent Emergency Trust Fund Fund Fund ASSETS Cash and short-term investments $ 307,419 $ 3,782,074 $ 3,500,000 Receivables (net of allowance for uncollectibles): Current property taxes - 1,593,470 - Delinquent property taxes - 45,838 - Accounts - - - Special assessment - - - Due from other County funds - - - Due from other governments - - - Inventories - - Other assets - - Total Assets $ 307,419 $ 5,421,382 $ 3,500,000 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - $ - Accrued liabilities - - - Due to other County funds - - Due to other governments - - - Unearned revenue - 1,645,506 - Unexpended grant revenue - - - Total Liabilities - 1,645,506 - Fund Balances: Reserved for encumbrances - - Reserved for other assets - - - Reserved for inventories - - Reserved for emergency - - 3,500,000 Unreserved: Designated for future year's expenditure - 3,750,000 - Undesignated 307,419 25,876 - Total Fund Balances 307,419 3,775,876 3,500,000 Total Liabilities and Fund Balances $ 307,419 $ 5,421,382 $ 3,500,000 82 Bebee Draw Total Law Nonmajor Public Health Solid Waste Enforcement Governmental Fund Fund Fund Funds $ 1,774,331 $ 1,208,882 $ 1,139 $ 10,573,845 - - - 1,593,470 - - 45,838 418,620 154,812 - 573,432 390,622 - - 390,622 16,776 - - 16,776 660 - - 660 $ 2,601,009 $ 1,363,694 $ 1,139 $ 13,194,643 $ 35,754 $ 5,557 $ - $ 41,311 180,310 - - 180,310 395,411 91,777 - 487,188 183,312 - - 1,828,818 794,787 97,334 - 2,537,627 6,565 - - 6,565 660 - .. 660 16,776 - - 16,776 - - - 3,500,000 - - - 3,750,000 1,782,221 1,266,360 1,139 3,383,015 1,806,222 1,266,360 1,139 10,657,016 $ 2,601,009 $ 1,363,694 $ 1,139 $ 13,194,643 83 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, 2004 Conservation Contingent Emergency Trust Fund Fund Fund REVENUES: Taxes: Taxes $ - $ 1,297,460 $ - Intergovernmental 361,926 - - Charges for services - - - Miscellaneous 11,169 - - Total Revenues 373,095 1,297,460 - EXPENDITURES: Current: Public Safety - - - Public health and welfare - - - Culture and recreation 602,937 - - Capital outlay - 1,800,000 - Total Expenditures 602,937 1,800,000 - Excess of Revenues Over (Under) Expenditures (229,842) (502,540) - Other Financing Sources (Uses): Transfers- In - - 474,495 Transfers -Out - 474,495 - Total Other Financing Sources (Uses) - (474,495) 474,495 Net Change in Fund Balances (229,842) (977,035) 474,495 Fund Balances at Beginning of Year 537,261 4,752,910 3,025,505 Fund Balances at End of Year $ 307,419 $ 3,775,875 $ 3,500,000 84 Bebee Draw Total Law Nonmajor Public Health Solid Waste Enforcement Governmental Fund Fund Fund Funds $ - $ - $ 13,839 $ 1,311,299 2,435,845 - - 2,797,771 1,098,211 1,352,899 - 2,451,110 51,435 - - 62,604 3,585,491 1,352,899 13,839 6,622,784 339,506 13,579 353,085 5,751,831 - - 5,751,831 - - - 602,937 33,232 29,621 - 1,862,853 5,785,063 369,127 13,579 8,570,706 (2,199,572) 983,772 260 (1,947,922) 3,036,057 - - 3,510,552 707,377 - 1,181,872 3,036,057 (707,377) - 2,328,680 836,485 276,395 260 380,758 969,737 989,965 879 10,276,257 $ 1,806,222 $ 1,266,360 $ 1,139 $ 10,657,015 85 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, 2004 Budgeted Original Final Actual Variance REVENUES General property taxes $ 2,275,000 $ 2,275,000 $ 2,269,104 $ (5,896) Penalties & interest - - 6,687 6,687 Total Taxes 2,275,000 2,275,000 2,275,791 791 Miscellaneous: Grant - 500,000 50,000 (450,000) Earnings on deposits - - 81,155 81,155 Total Miscellaneous - 500,000 131,155 (368,845) Total Revenues 2,275,000 2,775,000 2,406,946 (368,054) EXPENDITURES Capital Outlay: Buildings 3,740,000 5,657,828 4,838,816 819,012 Total Expenditures 3,740,000 5,657,828 4,838,816 819,012 Other Financing Sources (Uses): Transfers - In: General Fund - 750,000 750,000 - Total Other Financing Sources - 750,000 750,000 - Net Change in Fund Balance (1,465,000) (2,132,828) (1,681,870) 450,958 Fund Balance at Beginning of Year 3,498,442 3,498,442 3,498,442 - Fund balance at End of Year $ 2,033,442 $ 1,365,614 $ 1,816,572 $ 450,958 86 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, 2004 Budgeted Original Final Actual Variance REVENUES Intergovernmental: State lottery $ 340,000 $ 340,000 $ 361,926 $ 21,926 Miscellaneous: Earnings on deposits 14,000 14,000 11,169 (2,831) Total Revenues 354,000 354,000 373,095 19,095 EXPENDITURES Culture and Recreation: Land improvements 354,000 884,000 602,937 281,063 Capital Outlay: Land improvements Total Expenditures 354,000 884,000 602,937 281,063 Net Change in Fund Balance - (530,000) (229,842) 300,158 Fund Balances at Beginning of Year 537,261 537,261 537,261 - Fund balances at End of Year $ 537,261 $ 7,261 $ 307,419 $ 300,158 87 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, 2004 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes $ 1,300,000 $ 1,300,000 $ 1,295,048 $ (4,952) Penalties & Interest - - 2,412 2,412 Total Taxes 1,300,000 1,300,000 1,297,460 (2,540) Total Revenues 1,300,000 1,300,000 1,297,460 (2,540) EXPENDITURES Miscellaneous 5,550,000 5,075,505 (1) 5,075,506 Capital expenditure - - 1,800,000 (1,800,000) Total Expenditures 5,550,000 5,075,505 1,799,999 3,275,506 Other Financing sources (Uses): Transfers -Out: Other - 474,495 474,495 - Total Other Financing (Uses) - (474,495) (474,495) - Net Change in Fund Balance (4,250,000) (4,250,000) (977,034) 3,272,966 Fund Balances at Beginning of Year 4,752,910 4,752,910 4,752,910 - Fund Balances at End of Year $ 502,910 $ 502,910 $ 3,775,876 $ 3,272,966 88 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, 2004 Budgeted Original Final Actual Variance REVENUES Taxes: Total Revenues - - - - EXPENDITURES 3,025,000 3,499,495 - 3,499,495 Other Financing Sources (Uses): Transfers - In: Non-Departmental - (474,495) (474,495) - Total Other Financing Sources (Uses) - 474,495 474,495 - Net Change in Fund Balance (3,025,000) (3,025,000) 474,495 3,499,495 Fund Balances at Beginning of Year 3,025,505 3,025,505 3,025,505 - Fund Balances at End of Year $ 505 $ 505 $ 3,500,000 $ 3,499,495 89 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, 2004 Budgeted Original Final Actual Variance REVENUES Intergovernmental: State grants $ 1,781,350 $ 2,584,093 $ 2,435,845 $ (148,248) Counties 2,227,430 2,300,893 - (2,300,893) Total Intergovernmental 4,008,780 4,884,986 2,435,845 (2,449,141) Charges for Services: Charges for services 992,734 1,191,961 1,098,211 (93,750) Total Charges for Services 992,734 1,191,961 1,098,211 (93,750) Miscellaneous: Fees and fines - - 8,553 8,553 Other 16,350 350 20,619 20,269 Donations 1,400 17,400 22,263 4,863 Total Miscellaneous 17,750 17,750 51,435 33,685 Total Revenues 5,019,264 6,094,697 3,585,491 (2,509,206) EXPENDITURES Public Health and Welfare: Public health administration 136,002 178,841 199,196 (20,355) Health education 435,969 1,257,721 827,528 430,193 Nursing 3,223,140 3,174,404 2,803,899 370,505 Environmental health 1,925,830 2,186,716 1,921,208 265,508 Total Public Health and Welfare 5,720,941 6,797,682 5,751,831 1,045,851 Capital Outlay: Environmental health 5,700 28,700 33,232 (4,532) Total Capital Outlay 5,700 28,700 33,232 (4,532) Total Expenditures 5,726,641 6,826,382 5,785,063 1,041,319 Other Financing Sources (Uses): Transfers- In: Non Departmental 707,377 707,377 3,036,057 2,328,680 Total Other Financing Sources 707,377 707,377 3,036,057 2,328,680 Net Change in Fund Balance - (24,308) 836,485 860,793 Fund Balances at Beginning of Year 969,737 969,737 969,737 - Fund Balance at End of Year $ 969,737 $ 945,429 $ 1,806,222 $ 860,793 90 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, 2004 Budgeted Original Final Actual Variance REVENUES Landfill surcharge $ 1,500,000 $ 1,500,000 $ 1,352,899 $ (147,101) Total Revenues 1,500,000 1,500,000 1,352,899 (147,101) EXPENDITURES Miscellaneous: Solid waste 727,651 727,651 302,909 424,742 Code enforcement 64,972 64,972 36,597 28,375 Total Miscellaneous 792,623 792,623 339,506 453,117 Capital Outlay: Code enforcement - - 29,621 (29,621) Total Expenditures 792,623 792,623 369,127 423,496 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 - - 276,395 276,395 Fund Balances at Beginning of Year 989,965 989,965 989,965 - Fund Balances at End of Year $ 989,965 $ 989,965 $ 1,266,360 $ 276,395 91 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, 2004 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes $ 12,479 $ 12,479 $ 12,244 $ (235) Specific ownership taxes 1,100 1,100 1,529 429 Penalties & Interest - - 66 66 Total Revenues 13,579 13,579 13,839 260 EXPENDITURES Miscellaneous 13,579 13,579 13,579 - Total Expenditures 13,579 13,579 13,579 - Other Financing sources (Uses): Transfers - Out: Other - - - - Total Other Financing (Uses) - - - - Net Change in Fund Balance - - 260 260 Fund Balances at Beginning of Year 879 879 879 - Fund Balances at End of Year $ 879 $ 879 $ 1,139 $ 260 92 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, 2004 Budgeted Original Final Actual Variance REVENUES Intergovernmental: Federal Grants $ - $ - $ 270,000 $ 270,000 State Grants 2,500,000 2,500,000 2,796,944 296,944 Total Intergovernmental 2,500,000 2,500,000 3,066,944 566,944 Miscellaneous: Earnings on deposits - - 665 665 Miscellaneous 259,323 259,323 243,513 (15,810) Total Miscellaneous 259,323 259,323 244,178 (15,145) Total Revenues 2,759,323 2,759,323 3,311,122 551,799 EXPENDITURES Rent assistance 2,500,000 2,500,000 2,568,012 (68,012) Supplies 256,823 256,823 418,344 (161,521) Depreciation 2,500 2,500 2,231 269 Total Expenditures 2,759,323 2,759,323 2,988,587 (229,264) Net Change in Fund Balance - - 322,535 322,535 Fund Balances at Beginning of Year 1,067,443 1,067,443 1,067,443 - Fund Balances at End of Year $ 1,067,443 $ 1,067,443 $ 1,389,978 $ 322,535 93 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, 2004 Budgeted Original Final Actual Variance REVENUES Miscellaneous: Earnings on deposits 45,000 45,000 32,989 (12,011) Charge for service 1,150,000 1,150,000 1,219,436 69,436 Total Revenue 1,195,000 1,195,000 1,252,425 57,425 EXPENDITURES Depreciation 180,000 180,000 180,764 (764) Purchased services 546,000 546,000 498,676 47,324 Supplies 2,500 2,500 23,096 (20,596) Grants and donations - - 249,999 (249,999) Total Expenditures 728,500 728,500 952,535 (224,035) Net Change in Fund Balance 466,500 466,500 299,890 (166,610) Fund Balances at Beginning of Year 2,245,744 2,245,744 2,245,744 - Fund Balances at End of Year $ 2,712,244 $ 2,712,244 $ 2,545,634 $ (166,610) 94 rittt Wilk COLORADO 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 2004 This Information From The Records Of County of Weld: Prepared By: Barbara Eurich Phone: 970-356-4000 ext 4445 I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE A. Local B. Local C. Receipts from D. Receipts from ITEM Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes II. RECEIPTS FOR ROAD AND STREET PURPOSES Ill. 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) 2,496,717 a. Motor Fuel (from Item I.A.S.) 2. Maintenance: 15,298,624 b. Motor Vehicle(from Item 1.3.5.) 3. Road and street services: c. Total(a.+b.) a. Traffic control operations 2. General fund appropriations b. Snow and ice removal 810,243 3. Other local imposts(from page 2) 11,806,277 c. Other 255,167 4. Miscellaneous local receipts(from page 2) 3,339,217 d. Total (a.through c.) 1,065,410 5. Transfers from toll facilities 4. General administration&miscellaneous 2,542,236 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds-Original Issues 6. Total (1 through 5) 21,402,987 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) 15,145,494 b. Redemption B. Private Contributions c. Total a.+b. 0 C. Receipts from State government 2. Notes: (from page 2) 9 146 788 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) 340,596 c. Total(a.+b.) 0 E. '1otalreceuts(A.7+B+C+D 24,632,878 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) 21,402,987 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 10,771,393 24,632,878 21,402,987 14,001,284 0 Notes and Comments: FORM FHWA-536(Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 1 96 STATE: Colorado LOCAL HIGHWAY FINANCE REPORT YEAR ENDING(mm/yy): December 2004 H. RECEIPTS FOR ROAD AND STREET PURPOSES-DETAIL ITEM AMOUNT ITEM AMOUNT A.3. Other local imposts: A.4. M II i i t I. :I .t . a. Property Taxes and Assessments 5,011,909 a. Interest on investments 54,519 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 1,874,862 5. Other-Specific Ownership Tax 6,794,368 g. Other Misc. Receipts-Fees/Licenses/Pert 1,379,027 6. Total(1.through 5.) 6,794,368 h. Other 30,809 c. Total a.+b. 11 806 277 i. Total a.throu_• h. 3,339,217 (Ca forward to sate I) (Ca forward to .a a 1) ITEM AMOUNT ITEM AMOUNT C. Recei is from State Government D. Recei 1. Hi_hwa -user taxes 8,283,406 1. FHWA from Item I.D.5. 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 135,957 a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle 329,072 d. Federal Transit Admin d.Other (EIAF) 534,310 e. U.S.Corps of Engineers e. Other(Specify) f Other Federal 204,639 f Total(a.through e.) 863,382 g. Total(a.through£) 340,596 4. Total 1.+2.+3. 9,146,788 3. Total 1.+2. (Carty 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 107,608 107,608 b. En ineerin Costs 952 720 952 720 c. Construction: (1). New Facilities 867,515 867,515 (2). Capacity Improvements 568,874 568,874 (3). System Preservation 0 (4). System Enhancement&Operation 0 (5). Total Construction (1)+(2)+(3)+(4) 0 1,436,389 1,436,389 d. Total Ca ital Outla Lines l.a.+ 1.b.+ 1.c.5 0 2,496,717 2,496,717 (Carry forward to page 1) otes an omments: FORM FHWA-536(Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 97 COUNTY OF WELD STATE OF COLORADO Combining Statement of Net Assets Internal Service Funds December 31, 2004 Motor Vehicle Health Fund Insurance Fund Insurance Fund ASSETS Current Assets: Cash and cash equivalents $ 853,026 $ 1,496,543 $ 1,200,802 Receivables (net of allowances for uncollectables): Current property taxes - - 746,936 Delinquent property taxes - - 19,613 Accounts 33,039 7,461 - Due from other county funds 382,849 2,811 36,587 Inventories 29,327 -Other assets 1,763 - 62,682 Total current assets 1,300,004 1,506,815 2,066,620 Fixed assets: Improvements other than buildings 460,679 - - Buildings 1,800,977 - - Machinery and equipment 22,645,181 - - Accumulated depreciation (14,353,058) - - Total Fixed Assets 10,553,779 - - Total assets $ 11,853,783 $ 1,506,815 $ 2,066,620 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable $ 323,652 $ 5,250 $ 4,886 Accrued liabilities - - 674,499 Due to other county funds 21,146 - 1,000 Unearned revenue - - 769,458 Unexpended grant revenue - 538,955 - Current portion of long-term debt - - - Total Current Liabilities 344,798 544,205 1,449,843 Long-term liabilities: Certificates of participation - - - Total Long-term Liabilities - - - Total Liabilities 344,798 544,205 1,449,843 Net Assets Invested in capital assets, net of related debt 10,553,779 - - Restricted for: Workers'compensation - - 616,777 Unrestricted 955,206 962,610 - Total net assets 11,508,985 962,610 616,777 98 Phone Services Weld Finance Total Internal Fund Corporation Service Funds $ 1,266,885 $ 1,249 $ 4,818,505 - - 746,936 - - 19,613 11,395 - 51,895 19,908 - 442,155 - - 29,327 - - 64,445 1,298,188 1,249 6,172,876 - - 460,679 7,175,000 8,975,977 1,108,296 - 23,753,477 (976,300) (1,694,098) (17,023,456) 131,996 5,480,902 16,166,677 $ 1,430,184 $ 5,482,151 $22,339,553 $ 16,852 $ - $ 350,640 12,362 - 686,861 11 - 22,157 - - 769,458 - - 538,955 400,000 400,000 29,225 400,000 2,768,071 5,990,248 5,990,248 5,990,248 5,990,248 29,225 6,390,248 8,758,319 131,996 (909,346) 9,776,429 - - 616,777 1,268,963 1,249 3,188,028 1,400,959 (908,097) 13,581,234 99 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, 2004 Motor Vehicle Health Fund Insurance Fund Insurance Fund Operating revenues: Contributions $ - $ 203,425 $ - Charges for services 4,860,948 1,070 252,353 Total operating revenues 4,860,948 204,495 252,353 Operating expenses: Personnel services - (114) - Supplies 1,228,637 - 1,444 Purchased services 1,789,463 7,356 21,355 Insurance and bonds - - 398,490 Depreciation 2,035,284 - - Other 53,393 - 439 Claims - 170,032 914,346 Total operating expenses 5,106,777 177,274 1,336,074 Operating income (loss) (245,829) 27,221 (1,083,721) Nonoperating revenues (expenses): Taxes - - 548,157 Miscellaneous 2,750 - - Interest income - - 30,177 State Grant 28,709 - Gain (loss) on disposition of assets 139,650 - - Judgements and damages - - 89,738 Net increase (decrease) in fair market value - - - Interest expense - - - Total nonoperating revenues (expenses) 171,109 - 668,072 Income (loss) before contributions and transfers (74,720) 27,221 (415,649) Capital contributions 58,213 - - Changes in net assets (16,507) 27,221 (415,649) Total net assets - beginning 11,525,492 935,389 1,032,425 Total net assets -ending $ 11,508,985 $ 962,610 $ 616,776 100 Phone Services Weld Finance Total Internal Fund Corporation Service Funds $ - $ - $ 203,425 1,045,097 - 6,159,468 1,045,097 - 6,362,893 113,725 - 113,611 14,085 1,644 1,245,810 570,837 184 2,389,195 - - 398,490 60,278 239,167 2,334,729 49,261 - 103,093 - - 1,084,378 808,186 240,995 7,669,306 236,911 (240,995) (1,306,413) - - 548,157 738,054 740,804 731 30,908 - 28,709 - - 139,650 - - 89,738 (360,133) (360,133) 378,652 1,217,833 236,911 137,657 (88,580) 7,416 - 65,629 244,327 137,657 (22,951) 1,156,632 (1,045,754) 13,604,184 $ 1,400,959 $ (908,097) $ 13,581,233 101 COUNTY OF WELD STATE OF COLORADO Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended December 31,2004 Motor Vehicle Health Insurance Insurance Fund Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers $ 366,688 $ - $ 10,574 Cash flows from internal customers 4,144,047 743,022 331,254 Cash payments to external suppliers for goods and services (2,878,468) (25,298) (1,480,484) Cash payments to internal suppliers for goods and services (65,147) (84) (1,515) Cash payments to employees for services - (169,332) - Miscellaneous revenues 2,750 - - Net cash provided(used)by operating activities 1,569,870 548.308 _ (1,140,1711 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes - - 548,753 Judgements/damages/losses - - 89.738 Net cash provided by noncapital financing activities - - 638.491 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (2,023,368) - - Principal paid on long-term debt - - - Interest paid - - - Proceeds from sale of capital assets 320,321 - - Cash for future capital - - - Net cash provided(used)for capital and related financing activities (1,703,0471 • - CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments • - 30.176 Net cash provided(used)for investing activities - - 30,176 Net Increase(decrease)in Cash and Cash Equivalents (133,177) 548,308 (471,504) Cash and Cash Equivalents at Beginning of Year 986.203 948.235 1,672,306 Cash and Cash Equivalents at End of Year $ 853 026 $ 1 496 543 $ 1 700 802 Reconciliation of operating income to net cash provided(used)by operating activities: Operating income $ (245,8291 $ 27,221 $ (1,083,7211 Adjustments to reconcile operating income to net cash provided(used)by operating activities: Depreciation expense 2,035,284 Miscellaneous revenue 2,750 Change in assets and liabilities (Increase)decrease in accounts receivable (14,598) (7,461) (216,127) (Increase)decrease in due from other funds (216,949) (1,661) (3,661) (Increase)decrease in inventories (5,071) (Increase)decrease in other assets (1,763) (59,708) Increase(decrease)in accounts payable 33,923 (8,746) (85,082) Increase(decrease)in accrued liabilities 90,997 Increase(decrease)in other liabilities 10,832 1,000 Increase(decrease)in deferred revenue (28,7091 538,955 216.131 Total adjustments 1,815,699 521,087 (56,4501 Net cash provided by operating activities $ 1 569_87Q $ 548 308 $ (1 140 1711 Noncash investing,capital,and financing activities: Contributions of capital assets from(to)government $ 58,213 Capital asset trade-ins $ 69,623 102 Phone Service Weld Finance Total Internal Fund Corp Service Funds $ 98,206 $ - $ 475,468 935,894 738,054 6,892,271 (538,236) (3,824) (4,926,310) (100,428) - (167,174) (108,687) - (278,019) 2,750 286.749 734,230 1,998,986 548,753 89.738 638,491 (23,066) - (2,046,434) (378,354) (378,354) (360,132) (360,132) 320,321 (23.066) (738,486) 12,464,599) 731 30.907 731 30,907 263,683 (3,525) 203,785 1,003.202 4,774 4,614,720 6 1 266 885 $ 1 249 $ 4 818 505 $ 236,911 $ 497.058 $ (568,360) 60,277 239,167 2,334,728 2,750 (9,423) (247,609) (1,576) (223,847) (5,071) (61,471) (849) (1,995) (62,749) 1,409 92,406 11,832 726.377 49.838 237,172 2.567,346 $ 286 749 $ 734 23Q $ 1.998 986 $ 7,416 65,629 69,623 103 COUNTY OF WELD STATE OF COLORADO Combining Statement of Changes in Assets and Liabilities Fiduciary Funds For the fiscal year ended December 31, 2004 Balance Balance 1/1/2004 Additions Deductions 12/31/2004 GENERAL AGENCY FUND Assets: Cash and short-term investments $ 6,016,145 $ 3,522,422 $ 5,889,302 $ 3,649,265 Accounts receivable - - - - Total Assets $ 6,016,145 $ 3,522,422 $ 5,889,302 $ 3,649,265 Liabilities: Accounts payable $ - $ 101,270 $ 101,270 $ - Due to other governments 6,016,145 3,649,265 6,016,145 3,649,265 Total Liabilities $ 6,016,145 $ 3,750,535 $ 6,117,415 $ 3,649,265 PAYROLL AGENCY FUND Assets: Cash and short-term investments $ 525,291 $ 19,420,710 $ 19,866,957 $ 79,044 Accounts receivable 3,124 32,243 35,179 188 Total Assets $ 528,415 $ 19,452,953 $ 19,902,136 $ 79,232 Liabilities: Accounts payable $ 528,415 $ 25,939,298 $ 26,388,481 79,232 Total Liabilities $ 528,415 $ 25,939,298 $ 26,388,481 $ 79,232 EMPLOYEE FLEXIBLE SPENDING Assets: Cash and short-term investments $ 15,242 $ 426,545 $ 429,970 $ 11,817 Accounts receivable - - - - Total Assets $ 15,242 $ 426,545 $ 429,970 $ 11,817 Liabilities: Accounts payable $ 15,242 $ 11,817 $ 15,242 11,817 Total Liabilities $ 15,242 $ 11,817 $ 15,242 $ 11,817 TOTAL-ALL AGENCY FUNDS Assets: Cash and short-term investments $ 6,556,678 $ 23,369,677 $ 26,186,229 $ 3,740,126 Accounts receivable 3,124 32,243 35,179 188 Total Assets $ 6,559,802 $ 23,401,920 $ 26,221,408 $ 3,740,314 Liabilities: Accounts payable $ 543,657 $ 26,052,385 $ 26,504,993 $ 91,049 Due to other governments 6,016,145 3,649,265 6,016,145 3,649,265 Total Liabilities $ 6,559,802 $ 29,701,650 $ 32,521,138 $ 3,740,314 104 COUNTY OF WELD STATE OF COLORADO Paramedic Services Fund Schedule of Revenues, Expenses and Changes in Fund Equity- Budget and Actual For the fiscal year ended December 31, 2004 Budgeted Original Final Actual Variance Operating Revenues: Rescue unit fees $ 8,340,000 $ 9,940,000 $ 9,971,559 $ 31,559 Total Operating Revenues 8,340,000 9,940,000 9,971,559 31,559 Operating Expenses: Bad debt expense 4,361,408 5,961,408 5,991,313 (29,905) Personnel services 3,020,942 3,020,942 2,927,436 93,506 Supplies 229,750 230,954 257,267 (26,313) Purchased services 376,400 376,400 369,101 7,299 Depreciation 160,000 160,000 192,212 (32,212) Other 2,500 2,500 8,517 (6,017) Total Operating Expenses 8,151,000 9,752,204 9,745,846 6,358 Operating Income (Loss) 189,000 187,796 225,713 37,917 Nonoperating Revenues: Federal grant - - 50,824 50,824 Other - - 2,955 2,955 Gain (loss)on disposition of assets - - 6,000 6,000 Total Nonoperating Revenues - - 59,779 59,779 Income(loss) before contributions and transfers 189,000 187,796 285,492 97,696 Transfers out - - 5,611 (5,611) Net Income (Loss) 189,000 187,796 279,881 92,085 Fund Equity at Beginning of Year 463,524 463,524 463,524 - Fund Equity at end of Year $ 652,524 $ 651,320 $ 743,405 $ 92,085 105 COUNTY OF WELD STATE OF COLORADO Motor Vehicle Fund Schedule of Revenues, Expenses and Changes in Fund Equity- Budget and Actual For the fiscal year ended December 31, 2004 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 2,757,298 $ 3,257,298 $ 2,825,414 $ (431,884) Miscellaneous 1,948,377 1,948,377 2,035,534 87,157 Total Operating Revenues 4,705,675 5,205,675 4,860,948 (344,727) Operating Expenses: Supplies 901,372 1,401,372 1,228,637 172,735 Purchased services 1,752,540 1,752,540 1,789,463 (36,923) Depreciation 1,948,377 1,948,377 2,035,284 (86,907) Other 53,386 53,386 53,393 (7) Total Operating Expenses 4,655,675 5,155,675 5,106,777 48,898 Operating income (loss) 50,000 50,000 (245,829) (295,829) Nonoperating Revenues (Expenses): Miscellaneous - - 2,750 2,750 State Grant - - 28,709 28,709 Gain (loss)on disposition of assets 324,700 324,700 139,650 (185,050) Total Nonoperating Revenues(Expenses) 324,700 324,700 171,109 (153,591) Income(Loss) before contributions and transfers 374,700 374,700 (74,720) (449,420) Capital contributions - - 58,213 58,213 Net Income (Loss) 374,700 374,700 (16,507) (391,207) Fund Equity at Beginning of Year 11,525,492 11,525,492 11,525,492 - Fund Equity at End of Year $ 11,900,192 $ 11,900,192 $ 11,508,985 $ (391,207) 106 COUNTY OF WELD STATE OF COLORADO Health Insurance Fund Schedule of Revenues, Expenses and Changes in Fund Equity- Budget and Actual For the fiscal year ended December 31, 2004 Budgeted Original Final Actual Variance Operating Revenues: Contributions $ 384,256 $ 384,256 $ 204,495 $ (179,761) Operating Expenses: Personnel services - - (114) 114 Purchased services 5,000 5,000 7,356 (2,356) Claims 379,256 379,256 170,032 209,224 Total Operating Expenses 384,256 384,256 177,274 206,982 Operating Income (Loss) - - 27,221 27,221 Fund Equity at Beginning of Year 935,389 935,389 935,389 - Fund Equity at End of Year $ 935,389 $ 935,389 $ 962,610 $ 27,221 107 COUNTY OF WELD STATE OF COLORADO Insurance Fund Schedule of Revenues, Expenses and Changes in Fund Equity- Budget and Actual For the fiscal year ended December 31, 2004 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 240,000 $ 280,000 $ 252,353 $ (27,647) Operating Expenses: Supplies 700 700 1,444 (744) Purchased services 27,600 27,600 21,355 6,245 Insurance and bonds 309,000 309,000 398,490 (89,490) Other 500 500 439 61 Claims 950,000 1,293,399 914,346 379,053 Total Operating Expenses 1,287,800 1,631,199 1,336,074 295,125 Operating Income (Loss) (1,047,800) (1,351,199) (1,083,721) 267,478 Nonoperating Revenues (Expenses): Taxes 550,000 550,000 546,919 (3,081) Penalties & interest - - 1,238 1,238 Interest income 90,000 90,000 30,177 (59,823) Judgments and damages 50,000 50,000 89,738 39,738 Total Nonoperating Revenues (Expenses) 690,000 690,000 668,072 (21,928) Net Income (Loss) (357,800) (661,199) (415,649) 245,550 Fund Equity at Beginning of Year 1,032,425 1,032,425 1,032,425 - Fund Equity at End of Year $ 674,625 $ 371,226 $ 616,776 $ 245,550 108 COUNTY OF WELD STATE OF COLORADO Phone Service Fund Schedule of Revenues, Expenses and Changes in Fund Equity- Budget and Actual For the fiscal year ended December 31, 2004 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 860,000 $ 860,000 $ 1,045,097 $ 185,097 Operating Expenses: Personnel services 119,343 119,343 113,725 5,618 Supplies 8,000 8,000 14,085 (6,085) Purchased services 622,505 622,505 570,837 51,668 Depreciation 60,891 60,891 60,278 613 Other 49,261 49,261 49,261 - Total Operating Expenses 860,000 860,000 808,186 51,814 Operating Income (Loss) - - 236,911 236,911 Capital contributions and transfers Capital contributions - - 7,416 7,416 Net Income (Loss) - - 244,327 244,327 Fund Equity at Beginning of Year 1,156,632 1,156,632 1,156,632 - Fund Equity at End of Year $ 1,156,632 $ 1,156,632 $ 1,400,959 $ 244,327 109 COUNTY OF WELD STATE OF COLORADO Weld Finance Corporation Schedule of Revenues, Expenses and Changes in Fund Equity- Budget and Actual For the fiscal year ended December 31, 2004 Budgeted Original Final Actual Variance Operating Revenues: Operating Expenses: Supplies - - 1,644 (1,644) Purchased services - - 184 (184) Depreciation 380,000 380,000 239,167 140,833 Total Operating Expenses 380,000 380,000 240,995 139,005 Operating Income (Loss) (380,000) (380,000) (240,995) 139,005 Nonoperating Revenues (Expenses): Miscellaneous 740,133 740,133 738,054 (2,079) Interest income - - 731 731 Interest expense (360,133) (360,133) (360,133) - Total Nonoperating Revenues(Expenses) 380,000 380,000 378,652 (1,348) Income (loss) before contributions and transfers - - 137,657 137,657 Net Income (Loss) - - 137,657 137,657 Fund Equity at Beginning of Year (1,045,754) (1,045,754) (1,045,754) - Fund Equity at End of Year $ (1,045,754) $ (1,045,754) $ (908,097) $ 137,657 110 STATISTICAL x - 2 U3� !u i SECTION Astri ; Me COLORADO STATISTICAL SECTION 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 112 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 116 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 120 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demogranphic and Economic Information 124 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 126 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. 111 COUNTY OF WELD STATE OF COLORADO Net Assets by Component Last Three Years (accrual basis of accounting) Fiscal Year 2002 2003 2004 Governmental activities Invested in capital assets, net of related debt $ 253,141,316 $ 247,764,877 $ 238,640,911 Restricted for Programs 3,307,949 3,169,309 4,199,374 Emergencies 3,025,505 3,025,505 3,500,000 Claims 1,663,948 1,748,948 1,748,949 Unrestricted 27,713,273 26,511,213 30,759,296 Total governmental activities net assets $ 288 851 991 $ 282.219 852 $_ 278 848,530 Business-type activities Invested in capital assets, net of related debt $ 941,049 $ 834,285 $ 864,425 Unrestricted (86,086) (266,736) (4,761) Total business-type activities net assets $ 854 963 $ 567 549 $ 859.554 Primary government Invested in capital assets, net of related debt $ 254,082,365 $ 248,599,162 $ 239,505,336 Restricted 7,997,402 7,943,762 9,448,323 Unrestricted 27,627,187 26,244,477 30,754,535 Total primary government net assets $ 2B9.706 954 $ 282,7$7.401 $279 708 1.84 112 COUNTY OF WELD STATE OF COLORADO Changes in Net Assets Last Three Years (accrual basis of accounting) Fiscal Year 2002 2003 2004 Expenses Governmental activities: General government $ 19,978,184 $ 23,618,753 $ 21,174,906 Public safety 24,079,553 27,827,685 28,425,957 Streets and highways 34,283,421 33,353,129 32,688,807 Health and welfare 21,721,740 21,404,255 23,538,421 Culture and recreation 1,036,099 776,322 1,005,697 Economic assistance 11,079,949 11,411,322 12,646,785 Interest on long-term debt 406,155 377,233 358,054 Total governmental activities expenses 112,585,101 118,768,699 119,838,627 Business-type activities: Paramedic service 6,743.936 8.800,646 9,738.148 Total primary government expenses $ 119.329037 $ 127.569 345 $ 129 576.775 Program Revenues Governmental activities: Charges for services $ 30,195,907 $ 29,106,763 $ 30,726,173 Operating grants and contributions 26,156,456 25,963,243 27,124,685 Capital grants and contributions - - - Totalgovernmentalactivities program revenues 56,352,363 55,070,006 57,850,858 Business-type activities: Paramedic service 6.815,683 8,518,289 10,035,874 Total primary government expenses 63,168,046 63,588,295 67,886,732 Net(Expenses)/Revenue Governmental activities (56,232,738) (63,698,693) (61,987,769) Business-type activities 71,747 (282,357) 297,726 Total primary government net $ (56 160.9911 $ (63 981 050 ) $ (61 690 0431 General Revenues and Other Changes In Net Assets Governmental activities: Taxes: Property taxes $ 45,233,546 $ 47,532,602 $ 50,785,919 Specific Ownership 5,467,148 5,540,872 6,795,897 Other 2,376,581 2,492,418 3,333,336 Grants and contributions not restricted to specific programs - - - Unrestricted investment earnings 2,052,594 1,563,120 1,644,979 Gain on sale of capital assets 10,030 (94.5441 (2.358,185) Total governmental activities 55,139.899 57.034.468 60,201,946 Business-type activities: Paramedic service - (5,0571 (5.611) Total primary government $ 55 139 899 A 57 029 411 $ 60 196 335 Change In Net Assets Governmental activities $ (1,092,839) $ (6,664,225) $ (1,785,823) Business-type activities 71,747 (287.4141 292.115 Total primary government $ (1 021 0921 $ (6 951 6391 $ (1 493 7081 113 COUNTY OF WELD STATE OF COLORADO Fund Balances of Governmental Funds Last Three Years (modified accrual basis of accounting) Fiscal Year 2002 2003 2004 General Fund Reserved $ 3,249,297 $ 1,342,369 $ 1,516,298 Unreserved 2,921,157 3,727,307 6,699,941 Total general fund $ 6 17O 4M $ 5,069.676 $ 8 216 23.$ All other Governmental Funds Reserved $ 6,984,908 $ 2,666,118 $ 4,139,435 Unreserved, reported in: Special revenue funds 19,512,384 22,023,076 25,360,820 Capital projects funds 294,482 2,830,614 697,779 Debt service funds Total for all governmental funds $ 32162 228 $ 32 589A84 $ 38 414.273 114 COUNTY OF WELD STATE OF COLORADO Changes in Fund Balances,Governmental Funds Last Three Years (modified accrual basis of accounting) Fiscal Year 2002 2003 2004 Revenues Taxes $ 50,771,861 $ 53,080,974 $ 57,698,294 Licenses and permits 2,205,420 1,760,546 1,834,849 Intergovernmental 40,511,590 38,299,161 40,652,682 Fines and forfeitures 159,246 75,488 69,538 Charges for Services 5,746,678 6,887,469 7,345,819 Miscellaneous 5,536,066 4,739,386 5,329,931 Fees 6,638.831 7.387,204 7.454,831 Total Revenues 111.569,692 112,230,228 120,385,944 Expenditures Current: General government 19,100,208 21,910,296 20,566,315 Public Safety 23,435,572 27,212,371 27,475,345 Public Works 23,465,325 21,407,821 22,734,695 Public health and welfare 21,327,335 20,896,282 23,046,109 Culture and recreation 1,046,374 764,449 1,007,208 Economic assistance 10,892,932 11,365,585 12,450,198 Capital outlay 9,590,948 8,668,934 6,923,230 Debt service Interest 406,155 377,233 358,054 Principal Total Expenditures 109,264,849 112,602,971 114,561.154 Excess of revenues over(under)expenditures 2,304,843 (372,743) 5,824.790 Other Financing Sources(Uses) Transfers-in 5,144,682 2,482,745 4,299,153 Transfers-out 5,144.682 2,482,745 4.299,153 Total Other Financing Sources(Uses) Net changes in Fund Balance $ 2 304 843 $ (372.7431 $ 5 824 790 Debt Service as a percentage of noncapital expenditures 0.41% 0.36% 0.33% 115 COUNTY OF WELD STATE OF COLORADO Assessed Value and Estimated Actual Value of Taxable Property Last Ten Years Assessed Estimated Value as a Levy Real Personal Total Taxable Actual Total Direct Percentage of Year Property(1) Property(2) Assessed Value Taxable Value Tax Rate Actual Value 1995 1,027,364,600 177,752,250 1,205,116,850 7,930,166,264 22.040 15.197% 1996 987,014,993 184,390,364 1,171,405,357 7,607,029,997 22.040 15.399% 1997 1,115,923,550 193,859,950 1,309,783,500 8,582,619,658 22.040 15.261% 1998 1,177,632,350 200,869,820 1,378,502,170 9,037,147,911 22.040 15.254% 1999 1,267,726,630 177,524,250 1,445,250,880 9,524,873,040 22.040 15.173% 2000 1,394,937,800 178,415,510 1,573,353,310 10,458,246,948 22.038 15.044% 2001 1,856,425,158 164,866,560 2,021,291,718 13,858,618,903 22.038 14.585% 2002 2,011,976,670 162,098,080 2,174,074,750 14,949,486,248 20.559 14.543% 2003 2,045,894,060 157,315,880 2,203,209,940 15,022,478,889 20.056 14.666% 2004 2,537,941,600 160,329,790 2,698,271,390 18,789,890,059 21.474 14.360% Source: (1) Residential improved land and improvements at 12.86%of 1991 to June 30,1992 replacement costs as determined by State Law. (2) Commercial improved land, improvements,and personal property at 29%of 1990 replacement costs,as determined by State Law. (3) Total includes audit of oil and gas values understated by producers in 1990. (4) State assessed value is deducted from total assessed value as state property is not taxable. 116 COUNTY OF WELD STATE OF COLORADO Property Tax Rates Direct and Overlapping Governments Last Ten Years Levy Direct School Junior Year Coun Cities Districts College Other 1995 22.040 575.830 719.570 6.100 220.580 1996 22.040 565.990 694.280 6.320 245.120 1997 22.040 541.600 710.620 6.250 237.180 1998 22.040 508.470 724.650 6.320 346.620 1999 22.040 522.150 717.980 6.250 346.570 2000 22.038 584.333 711.441 6.343 378.748 2001 22.038 481.370 709.199 6.351 372.305 2002 20.559 436.887 680.402 6.620 662.714 2003 20.056 415.384 650.081 6.316 730.987 2004 21.474 440.614 647.338 6.322 860.441 Source: The basis for the property tax rates is per$1,000 assessed valuation. 117 COUNTY OF WELD STATE OF COLORADO Principal Property Taxpayers 2004 1995 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 $ 345,574,340 1 11.54% Patina Oil&Gas Corporation 298,148,540 2 9.96% Public Service Company of Colorado 101,246,200 3 3.38% $ 34,058,500 2 2.83% Encana Oil&Gas(USA)Inc 78,768,780 4 2.63% Merit Energy 40,564,600 5 1.36% Petroleum Development Corp 40,358,480 6 1.35% Eastman Kodak Company 37,486,180 7 1.25% 75,962,300 1 6.31% Prima Oil&Gas 34,999,910 8 1.17% Ken'-McGee Gathering LLC 33,150,100 9 1.11% Duke Energy Field Services Inc 31,004,620 10 1.04% Thermo Cogeneration Partnership 29,633,100 3 2.46% US West Communications Incorporated 13,965,400 4 1.16% Union Pacific Corporation 8,611,600 5 0.72% National Hog Farm Incorporated 8,552,880 6 0.71 Monfort Packing Corporation 7,446,530 7 0.62% Metal Containers Corporation 6,690,400 8 0.56% AT&T Communications 6,653,500 9 0.55% KN Wattenberg Limited Liability CO 6,179,100 10 0.51% $ 1,041,301,750 34.79% $ 197,753,310 16.43% 118 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(11 Amount(21 of Levy Years(31 Amount(3) of Lew 1994 1995 $ 27,473515 $ 27,308,264 99.399% $ - $ 27,308,264 99.399% 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% 16,245 34,110,470 99.846% 1999 2000 35,976,391 35,788,843 99.479% 156,174 35,945,017 99.913% 2000 2001 38,774,962 38,275,747 98.713% 112,195 38,387,942 99.002% 2001 2002 45,619,589 45,566,346 99.883% 172,356 45,738,702 100.261% 2002 2003 48,640,425 48,410,396 99.527% 87,450 48,497,846 99.707% 2003 2004 53,350,030 53,094,454 99.521% - 53,094,454 99.521% Source: 1)Final Budget 2)YTD Treasurer's Tax Distribution 3)YTD Treasurer's Tax Distribution 2001 forward. 119 COUNTY OF WELD STATE OF COLORADO Tables Relating to Bonded Debt (Unaudited) December 31,2004 NOTE: Weld County is without bonded debt and, accordingly,the following statistical tables are not presented: A. Ratios of Outstanding Debt by Type, last ten fiscal years. B. Ratios of General Bonded Debt Outstanding, last ten fiscal years. C. Pledged-Revenue Coverage, last ten fiscal years. 120 COUNTY OF WELD STATE OF COLORADO Direct and Overlapping Governmental Activities Debt December 31,2004 Net General Obligation Percentage Amount Bonded Debt Applicable to Applicable to Jurisdiction Outstanding Government(11 Government Cities&Towns $ 90,973,514 87.37% $ 79,484,017 Schools 681,466,859 45.51% 310,121,245 Special Districts 63,502,574 67.44% 42,827,956 Total Overlapping $ 835 942 947 $ 432 433 218 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. 121 ) \ • \ co VI N N ) Ni s ) ] CO a:5 oi c4 co 6 el 0 ; (MN N 00 ON ON .N o ! . § \ ) \ ` \ � ) § { 0 \ /\ \ \ \ N < . . & \ ) _ , ) CO ® - - ` S ` t ! E & ' ) § { 0 -.= § 7 1 ® ( ! ff ! ! ! Egi ! ! l ; : ; ! ! ' \ \ � � � �ozog \ / � OT. - \ I a - ) o \ \ / ( CO 2 2 = ) ) a ) 7 \ \ \ ` \ � \ \ ZO ,E 122 COUNTY OF WELD STATE OF COLORADO Private Purpose Revenue Bonds December 31,2004 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 $480,000 $0 $50,000 $430,000 Waste Service Corporation Landfill 2,500,000 2/91 1,515,000 0 135,000 1,380,000 RVNA Home Care Service,Inc Office 501,000 7/97 419,779 0 17,119 402,660 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 5/99 339,785 0 12,846 326,939 GSSLB Association Nursing Home Nursing Home 2,020,000 10/98 1,730,000 0 95,000 1,635,000 Greeley Center for Therapeutic 1,650,000 9/03 1.636.748 0 54,453 1,582,295 Independence, Inc Center TOTAL PRIVATE PURPOSE REVENUE BONDS $7 466 312 r$Q $364 418 $7 101 894 123 COUNTY OF WELD STATE OF COLORADO Demographic and Economic Statistics Last Ten Years Total Per Unemployment Year Population Personal Income Capita Income Rate 1995 146,643 2,739,133,000 18,475 4.20% 1996 149,332 2,930,552,000 19,328 4.30% 1997 154,930 3,116,653,000 20,038 3.80% 1998 166,547 3,521,000,000 21,144 3.90% 1999 174,342 3,888,000,000 22,301 3.70% 2000 180,936 4,217,000,000 23,016 3.40% 2001 193,929 4,357,000,000 22,469 4.00% 2002 202,329 4,467,000,000 23,189 6.10% 2003 207,120 5,170,000,000 23,869 6.70% 2004 217,652 5,520,000,000 27,132 5.40% Source: Greeley/Weld Economic Development Office(EDAP) 124 COUNTY OF WELD STATE OF COLORADO Principal Employers Current Year and Nine Years Ago 2004 1995 Percent Percent Of Total County Of Total County Employees Rank Employment Employees Rank Employment Swift&Company 3000 1 3.16% 4331 1 5.62% State Farm Insurance Companies 2340 2 School District 6 2180 3 2.29% 1675 3 2.18% State of Colorado(includes UNC) 1925 4 2.03% 930 9 1.21% Northern Colorado Medical Center 1866 5 1.96% 1357 4 1.76% Eastman Kodak Company 1650 6 1.74% 2443 2 3.17% Aims Community College 1596 7 1.68% 1167 6 1.52% Weld County Government 1389 8 1.46% 1000 8 1.30% City of Greeley 930 9 0.98% 844 10 1.10% Startek USA 840 10 0.88% Hewlett Packard 1220 5 1.58% University of Northern Colorado 1100 7 1.43% 17,716 16.18% 16,067 17.85% Source: Greeley/Weld Economic Development Office (EDAP) 125 / N N r N r 2 / CNCN � ) � (NrC CD` r 0 10 N E Co \ % , , CO , ° { / \2 ) \ / § ) ] ~ § E ® \ \ \ .00 \ � , 0 \ \ O t E , , , ° % � ( \ E § ) 0)1 Co \ co m @ \ > / b a) N CONN •I CO ~ ` ~ ` CO ° CD 0 \ 9 Z E \ \ • - ( § 8 co = 0 \ { , / « ) Ni Q , , , •yr, 0)r ° \ { ) ) f f ) NrrN , COON; CO _ § k / ! § § § § § ( ^ § 0 0 CD 0 \ \ ( § ) § { 0 — E co ) | ) _ § 2 ; § s § { _ ) k / \ \ k \ = ) { � / \ / # } j ) ) � k E k ) � \:= - 7300 ! ) § P. . � ■ = = - = - _ — | & < 2 § ) ) 22 / ) ) ) ) � ) ] 73 / { 126 COUNTY OF WELD STATE OF COLORADO Operating Indicators by Function/Program Last Five Years Fiscal Year 2000 2001 2002 2003 2004 Function/Program General government: Motor vehicle registration 478,727 294,019 305,879 433,188 439,146 Registered voters(1) 80,041 79,289 85,161 76,245 98,692 Number of votes cast(2) 65,317 22,422 56,730 32,476 89,099 Percent of registered voters voting 81.6% 28.3% 66.6% 42.6% 90.3% Public safety: Adult arrests 1,457 1,520 1,435 2,738 1,387 Juvenile arrests 250 220 337 491 218 Average secure jail population 303 298 330 371 402 E911 calls 55,807 52,000 84,420 72,396 75,276 Building Permits 2,190 2,180 2,082 1,941 2,012 Valuation(thousands) $143,856 $148,426 $125,336 $201,442 $132,178 Public works: Miles of road graveled 427 440 440 440 401 Snow removal lane miles 1370 1390 1390 1,406 33,710 Grading lane miles 123,718 131,171 131,171 126,000 175,910 Miles of Upgrade-Aggregate Surfaced Roads 26 5 5 8 10 Culverts(new and repaired)15"and larger 204 240 240 240 217 Tons of asphalt laid 102,221 80,055 80,055 101,243 95,634 Tons of gravel crushed 490,000 500,000 500,000 510,000 487,477 Health and welfare: Social Services Caseload 9,900 9,900 9,900 9,900 12,000 Patient contacts 17,271 16,207 16,207 14,601 15,000 Immunizations 15,979 17,730 5,848 4,600 7,500 Culture and recreation: Visitors-Missile Park 700 700 695 558 575 County Fair Exhibitors -- 5,000 2,370 2,410 2,410 Economic assistance: Headstart clients 524 537 577 641 622 Migrant Headstart clients 250 99 200 146 175 Business-type activities: Paramedic Services Patients transported 6,973 6,687 7,027 7,060 7,331 Source: (1)Beginning in 1999 the number of registered voters reflects active voters. (2)Even years represent general elections,odd years coordinated elections. 127 COUNTY OF WELD STATE OF COLORADO Capital Asset Statistics by Function/Program Last Five Years Fiscal Year 2000 2001 2002 2003 2004 Function/Program General government: Building Square Footage 585,045 604,100 620,310 684,551 Courtrooms 9 9 9 9 10 Information Systems Connections 959 997 1,240 Public safety: Jail capacity(beds) 454 454 454 454 386 Patrol cars 35 36 44 43 42 Radios and cell phones 828 857 947 939 Public works: Miles of Roads Paved 665 665 670 679 671 Unpaved 2,490 2,484 2,457 2,438 2,425 Un-maintained 255 254 253 250 252 Grader sheds 18 18 18 18 18 Motor graders 27 27 30 29 30 Health and welfare: Alternative fuel vehicles 4 4 4 5 6 Economic assistance: Headstart sites 12 12 12 10 10 Business-type activities: Paramedic Services Ambulances 11 11 10 10 10 128 COUNTY OF WELD STATE OF COLORADO Insurance in Force December 31,2004 Policy Policy Period Annual Name of Company Number Begins Expires Details of Coverage Liability Limits Premium Midwest Employers ECW005661 01/01/04 12/31/04 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. $45,414 Lexington 413367 07/01/04 12/31/04 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 GP06301492 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 $214,222 $125,000 each claim 129 6t: Wilk COLORADO 130 Single 0 Audit Cfsv: ' �' " 1�1 WI 1k COLORADO !! !$ ;ke# ` ) 7 ;!�! /i w a !4 °N 0 M0 0 ° 7! 00 O °« a Uww ! 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OW ` 0 . -0 38:22 E '5 # « )w ) #` E §^I�°!;!!2 ��;§ ,z■ ; 7 co/] o ° el to ,� f ! § (§)co N §p CO #5i!«5;Dim®!R!■! K#f CO — *Wer» 0. OW )() - - §®a ;■&■» #��0 CO , 00 300 Down k° # k#°r—go aoo§}o( , §k;wee /§§j fisi, 0 N. M. i®: )( () )/ ) §§§§§§§§§§§§§§§ \)\ O ! ; co - 0 § P0. ) §z LL ) / :2 et iiinw Lij 0 O 0 /O 0 re ,} ) u_ ) § \ 0 :s a ,Si, !! 0 9 |{ / ( EE . /f)|)|t= ( \k/ = # � ! 9??\!;!:!!!# \ 7. § ; )2)$$!!I- ! ! - - E },|/«�)f!!!!!!!B 585 O )) 0 0 //)///;;!!>;;«§ § 50 § # / 0 I- 0 „NNNNNN!!!!#i»2 ) .-\! I- (4 ) !/ ;;!§;;;;;i;;;;;` ` 888 135 COUNTY OF WELD STATE OF COLORADO Notes to Schedule of Expenditures of Federal Awards For the Fiscal Year Ended December 31, 2004 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, 2004, the County had food commodities totaling $191,745 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. 136 of ANdERSON A Professionalifie CorporationAccountants is Certified Public Accountants ©WI—IITNEy ■ ■ ■ n Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing'Standards Board of County Commissioners Weld County, Colorado We have audited the financial statements of Weld County as of and for the year ended December 31, 2004, and have issued our report thereon dated May 20, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Weld County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, 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 that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered Weld County'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 assurance 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 over financial reporting that might be material weaknesses. A material weakness is a 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 in amounts that would be material in relation to the basic 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 dated May 20, 2005. 5801 West 11th Street • Suite 300 137 (970) 352-7990 Greeley, Colorado 80634-4813 FAX (970) 352-1855 Board of County Commissioners Weld County, Colorado Page 2 This report is intended 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. GL.. ..,, f w ,P.C . May 20, 2005 138 Corof ANdERSON A ProfessionalCertified ub c Accountants n is Certified Public Accountants WhITNEy ■ III ■ • ■ Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133 Board of County Commissioners Weld County, Colorado Compliance We have audited the compliance of Weld County 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, 2004. Weld County'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'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's compliance with those requirements. As described in findings 2004-1 through 2004-14 in the accompanying schedule of findings and questioned costs, Weld County did not comply with requirements regarding eligibility, reporting, and special tests and provisions that are applicable to its Food Stamp and TANF programs. Compliance with such requirements is necessary, in our opinion, for Weld County to comply with requirements applicable to those programs. In our opinion, except for the noncompliance described in the preceding paragraph, Weld County 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, 2004. 5801 West 11th Street • Suite 300 139 (970) 352-7990 Greeley. Colorado 80634-4813 FAX (970) 352-1855 Board of County Commissioners Weld County, Colorado Page 2 Internal Control Over Compliance The management of Weld County is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Weld County'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. We noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over compliance that, in our judgment, could adversely affect Weld County's ability to administer a major federal program in accordance with applicable requirements of laws, regulations, contracts and grants. Reportable conditions are the lack of effective processes and procedures which resulted in the items described in the accompanying schedule of findings and questioned costs as findings 2004-1 through 2004-14. 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. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider the reportable conditions described above to be material weaknesses. This report is intended solely for the information and use of management, federal awarding agencies, pass-through entities and is not intended to be and should not be used by anyone other than those specified parties. a44,.o..,— . 14)14;#44,49'C . May 20, 2005 140 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2004 SUMMARY OF AUDITORS' RESULTS a Type of report issued on financial statements Unqualified - Type of report issued on major programs Qualified Audit findings disclosed Yes (See Below) Major programs 10.551 Food Stamp Program 10.561 Food Stamp Administration 93.778 Medicaid Title XIX 93.558 Colorado Works (TANF) - Dollar threshold between Type A and Type B programs $1,113,400 • Low-risk auditee Yes FINDINGS RELATED TO FINANCIAL STATEMENTS D None Reported FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS • FINDING 2004-1: TIMELY PROCESSING OF FOOD STAMPS APPLICATIONS 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 a issue starting in September of 2004 through year end. 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. 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 hiring additional temporary staff to assist with the back log 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. 141 D FINDING 2004-2: FOOD STAMP REDETERMINATIONS 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. 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 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. Effect: Benefits continued to be paid without proper re-determination of eligibility. Recommendation: Ensure re-determinations are done prior to paying out benefits. Questioned Costs: Cannot be determined. FINDING 2004-3: FOOD STAMPS BENEFITS PUSHED THROUGH CBMS 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. Criteria: Benefits should be paid only to eligible households and should be calculated using correct and verified data. 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. FINDING 2004-4: FOOD STAMPS CLAIMS AGAINST HOUSEHOLDS Condition: The State has 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. 142 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. 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 over payments 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. FINDING 2004-5: ERROR IN DETERMINATION OF FOOT STAMPS ELIGIBILITY Condition: Two of 40 Food Stamps files selected for testing represented incorrectly denied benefits when benefits should have been issued. Both relate to data entry error when processing the application. One file was a file sent to the State Centralized Data Entry Team for processing. 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. 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 FINDING 2004-6: DOCUMENTATION OF HOUSEHOLD INCOME FOR FOOD STAMP ELIGIBILITY Condition: In 1 of the 40 Food Stamps 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. Criteria: Appropriate verifications of income should be done when determining eligibility. Effect: Eligibility determination could be made in error without appropriate verification of household income. 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: $290 143 D FINDING 2004-7: ACCURACY OF DETERMINATION OF ELIGIBILITY AND BENEFIT CALCULATION FOR FOOD STAMPS 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. 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. 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. FINDING 2004-8: TIMELY PROCESSING OF TANF BENEFITS 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. 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. 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 back log of cases. We recommend continuing to reduce the backlog to allow applications to be processed as they are received. Questioned Costs: Cannot be determined. - FINDING 2004-9: TANF SANCTION CALCULATIONS Condition: In 2 cases selected for TANF 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. 144 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 may terminate assistance. Effect: Required sanctions may not be being 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. Questioned Costs: Cannot be determined. a FINDING 2004-10: TANF INCOME ELIGIBILITY AND VERIFICATION SYSTEM 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. 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. Effect: Data exchanges with other federal program databases are not occurring as required. Recommendation: System errors should be corrected so programs are in compliance. Questioned Costs: Cannot be determined. FINDING 2004-11: TANF BENEFITS PUSHED THROUGH THE SYSTEM 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 35 files we selected for testing. In other cases, benefits were pushed through when re-determinations 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. 145 Criteria: Benefits should be paid only to eligible households and should be calculated using correct and verified data. 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. D FINDING 2004-12: NONCOMPLIANCE WITH TANF PROGRAM REQUIREMENTS Condition: Documentation supporting the client'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. Criteria: Individuals applying for Colorado Works benefits shall be required to enter into an Individual Responsibility Contract (IRC) with the county. 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 FINDING 2004-13: MISSING TANF FILE Condition: Of the 35 TANF files selected for testing, one file could not be located. Criteria: Appropriate supporting documentation and correspondence should be maintained by the County. 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. FINDING 2004-14: NONCOMPLIANCE WITH TANF PROGRAM REQUIREMENTS Condition: For 3 of the 35 TANF cases tested, documentation of child immunizations was not found. 146 Criteria: As 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 redetermination 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. 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 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 Departments 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 the successful resolution of these issues through the implementation of Deloitte's recommendations will result in the reduction of our audit findings. 147 WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS Year Ended December 31, 2004 SUMMARY OF PRIOR AUDIT FINDINGS D THERE WERE NO PRIOR AUDIT FINDINGS 148 Hello