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Home My WebLink About20012427 GREELEY-WELD COUNTY AIRPORT AUTHORITY Greeley, Colorado Annual Financial Report December 31, 2000 (6IvW J ,/1-/zeeA og/a7/gdo I 2001-2427 GREELEY-WELD COUNTY AIRPORT AUTHORITY Annual Financial Report Year Ended December 31, 2000 GREELEY-WELD COUNTY AIRPORT AUTHORITY Table of Contents aege INDEPENDENT AUDITOR'S REPORT 1 GENERAL PURPOSE FINANCIAL STATEMENTS ALL FUND TYPES Combined balance sheet 2 ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS Combined statement of revenues, expenses and changes in retained earnings/fund balances 3—4 Combined statement of cash flows 5—6 Footnotes to financial statements 7— 15 INDEPENDENT AUDITOR'S REPORT ON INDIVIDUAL FUND FINANCIAL STATEMENTS, SCHEDULES AND STATISTICAL DATA 16 INDIVIDUAL FUND FINANCIAL STATEMENTS, SCHEDULES AND STATISTICAL DATA ENTERPRISE FUND -AIRPORT FUND Comparative balance sheet 17 Schedules of financial resources provided, applied and changes in working capital - budget and actual 18 Schedules of financial resources provided —budget and actual 19—20 Schedules of current operating expenses—budget and actual 21 —22 TRUST FUND- EMPLOYEES PENSION Schedules of revenues, expenses and changes in fund balance- budget and actual 23 STATISTICAL DATA 24-25 COMPLIANCE REPORTS AND SCHEDULES REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH "GOVERNMENT AUDITING STANDARDS" 26 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 27-28 Schedule of expenditures of federal awards 29 -- Footnotes to schedule of expenditures of federal awards 30 Schedule of findings and questioned costs 31 Summary schedule of prior audit findings 31 ' COLE AND CROSIER, P.C. 111 MAIN STREET CERTIFIED PUBLIC ACCOUNTANTS LA SALLE,COLORADO 60645 (970)284-5545 INDEPENDENT AUDITOR'S REPORT Board of Commissioners Greeley-Weld County Airport Authority Greeley, Colorado We have audited the accompanying general purpose financial statements of Greeley-Weld County Airport Authority as of and for the year ended December 31, 2000, as listed in the table of contents. These financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of Greeley-Weld County Airport Authority as of December 31, 2000, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. _ In accordance with Government Auditing Standards, we have also issued our report dated August 7, 2001, on our consideration of Greeley-Weld County Airport Authority's internal control 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.\AD CD. �, Cole and Crosier, P.C. Certified Public Accountants LaSalle, Colorado August 7, 2001 1 MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS GENERAL PURPOSE FINANCIAL STATEMENTS These basic financial statements provide a summary overview and broad perspective of the financial position of all funds and of the operating results of all funds. They also serve as an introduction to the more detailed statements and schedules that follow. GREELEY-WELD COUNTY AIRPORT AUTHORITY All Fund Types Combined Balance Sheet — December 31. 2000 Proprietary Fiduciary Totals Fund Types Fund Types (Memo Only) Pension Enterprise Trust 2000 1999 - ASSFT$ Cash (Note 9) $ 172,542 $ 3,965 $ 176,507 $ 317,359 Investments (Note 9) 0 77,997 77,997 79,849 _ Receivables Leases and sales (Note 10) 63,442 0 63,442 92,350 Fuel and sales tax distributions 15,911 0 15,911 8,572 Grants and capital contributions Federal Aviation Administration (Note 15) 335,323 0 335,323 772,635 Weld County/City of Greeley matching (Note 15) 50,735 0 50,735 161,776 State of Colorado 4,194 0 4,194 112,226 Due from other funds 0 0 0 3,258 _ Inventories 0 0 0 32,272 Prepaid expenses 15,611 0 15,611 5,187 Fixed assets - net of accumulated depreciation (Notes 8 and 12) 20,214,684 0 20,214,684 17,577,976 Master/infrastructure design plans (Note 2) 32,095 0 32,095 10,516 TOTAL ASSFTS $20,904,537 $ 81,962 $20,986,499 $ 19,173,976 IARII ITIFS Accounts payable $ 330,601 0 $ 330,601 $ 1,096,838 Accrued interest payable 264 0 264 349 Compensated absences payable 10,649 0 10,649 16,022 Deposits 9,743 0 9,743 5,608 Payroll and other taxes payable 576 0 576 969 Accrued wages 7,536 0 7,536 12,370 Due to other funds 0 0 0 3,258 — Notes payable (Note 3) 159,097 0 159,097 210,971 Deferred revenue Gain from sale and leaseback (Note 4) 1,305 0 1,305 3,297 — Leases (Note 5) 218,727 0 218,727 205,514 Total liabilities 738,498 0 738,498 1,555,196 -- FUND EQUITY Contributed capital (Notes 6 and 17) 19,578,208 0 19,578,208 16,915,346 Retained earnings - unreserved (Note 17) 587,831 0 587,831 619,951 — Fund balance - reserved for retirement 0 $ 81,962 81,962 83,483 Total fund equity 20,166,039 81,962 20,248,001 17,618,780 - TOTAL LIABILITIES AND FUND EQUITY $20,904,537 $ 81,962 $20,986,499 $ 19,173,976 The accompanying footnotes are an integral part of this report. 2 GREELEY-WELD COUNTY AIRPORT AUTHORITY All Proprietary Fund Types and Similar Trust Funds Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances For the Year Ended December 31. 2000 Proprietary Fiduciary Totals Fund Types Fund Types (Memo Only) Enterprise Pension Trust 2000 1999 PFRATING RFVFNUFS(Note 10) Leases and rentals (Note 5) $ 344,576 0 $ 344,576 $ 294,736 Charges for services 6,621 0 6,621 4,741 Operators licenses 2,500 0 2,500 2,500 Farm revenue 28,334 0 28,334 28,237 Employer contributions 0 $ 14,377 14,377 12,928 Earnings on investments 0 11,459 11,459 5,520 Other operating revenues 33,371 0 33,371 26,721 Total operating revenues 415,402 25,836 441,238 375,383 PERATING FXPFNSFS Personnel services/benefits 202,738 0 202,738 187,482 Contractual services 12,618 250 12,868 8,637 Supplies 15,420 0 15,420 14,037 Repairs and maintenance 31,608 0 31,608 32,841 Utilities 50,861 0 50,861 35,366 Other operating expenses 61,259 0 61,259 50,499 Total operating expenses 374,504 250 374,754 328,862 PFRATING INCOMF RFFORF DFPRFCIATION AND AMORTI7ATION 40,898 25,586 66,484 46,521 Depreciation and amortization 600,474 0 600,474 342,791 OPERATING INCOME (LOSS') FROM CONTINUING OPFRATIONS (559,576) 25,586 (533,990) (296,270) NONOPERATINC REVENUES (EXPENSES') Gain on sale and leaseback of hangars (Note 4) 1,992 0 1,992 1,992 Interest expense (10,441) 0 (10,441) (13,219) Earnings on investments 7,256 0 7,256 7,273 Oil and gas lease revenue 13,716 0 13,716 1,884 Realized and unrealized gains (losses) on investments 0 (27,107) (27,107) 20,731 Gain (loss) on disposal of assets (23,936) 0 (23,936) 8,266 Total nonoperating revenues (expenses) (11,413) (27,107) (38,520) 26,927 NET lOSS FROM CONTINUING OPFRATIONS (570,989) (1,521) (572,510) (269,343) 3 Proprietary Fiduciary Totals Fund Types Fund Types (Memo Only) Enterprise Pension Trust 2000 1999 OPERATING INCOME FROM DISCONTINUED SEGMENT (Note 16) Net sales 454,945 0 454,945 648,547 Cost of sales 306,612 0 306,612 379,118 _ Gross margin 148,333 0 148,333 269,429 Leases and rentals 691 0 691 231 Charges for services 540 0 540 1,160 Other operating revenues 583 0 583 1,265 Total operating revenues 150,147 0 150,147 272,085 Personnel services/benefits 106,366 0 106,366 142,193 Supplies 2,575 0 2,575 2,387 Other operating expenses 5,219 0 5,219 5,705 Total operating expenses 114,160 0 114,160 150,285 Operating income from discontinued segment 35,987 0 35,987 121,800 NET I OSS (535,002) (1,521) (536,523) (147,543) Depreciation and amortization on property acquired by capital grants reducing contributed capital (Note 6) 502,882 0 502,882 251,711 INCRFASE (DECREASE) IN RFTAINFQ FARNINGS/FIINDRAIANCFS (32,120) (1,521) (33,641) 104,168 RETAINED EARNINGS/FUND RALANCFS Beginning of year (Note 17) 619,951 83,483 703,434 599,266 End of year $ 587,831 $ 81,962 $ 669,793 $ 703,434 The accompanying footnotes are an integral part of this report. 4 GREELEY-WELD COUNTY AIRPORT AUTHORITY All Proprietary Fund Types and Similar Trust Funds Combined Statement of Cash Flows For the Year Ended December 31. 200Q Proprietary Fiduciary Totals Fund Types Fund Types (Memo Only) Enterprise Pension Trust 2000 1999 - CASH FLOWS FROM OPERATING ACTIVITIFS Net loss (including discontinued segment) $ (535,002) $ (1,521) $ (536,523) $ (147,543) Adjustments to reconcile operating loss to net cash from operating activities Nonoperating (revenues) expenses 11,413 27,107 38,520 (26,927) Depreciation and amortization 600,474 0 600,474 342,791 Decrease in accounts receivable 21,569 3,258 24,827 2,541 (Increase)decrease in inventories 32,272 0 32,272 (18,946) (Increase)decrease in prepaid expenses (10,424) 0 (10,424) 562 Increase (decrease) in accounts payable (33,387) 0 (33,387) 29,623 Increase (decrease) in accrued expenses (13,858) 0 (13,858) 3,774 Increase in deferred lease revenue 13,213 0 13,213 77,457 Total adjustments 621,272 30,365 651,637 410,875 Net cash from operating activities 86,270 28,844 115,114 263,332 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIFS Net increase (decrease) in deposits 4,135 0 4,135 (924) Oil and gas revenue 13,716 0 13,716 1,884 Net cash from noncapital financing activities 17,851 0 17,851 960 CASH Fl OWS FROM CAPITAL AND RELATED FINANCING ACTIVITIFS Principal payments on long-term debt (51,874) 0 (51,874) (68,255) Decrease in county treasurer overdraft advances 0 0 0 (32,366) Proceeds from sale of assets 0 0 0 8,706 Decrease in local government construction advances 0 0 0 (176,865) Grants received from State of Colorado 314,287 0 314,287 348,409 Grants received from FAA 3,103,619 0 3,103,619 3,189,984 Appropriations received from local governments 404,223 0 404,223 1,110,550 Land purchase payable to City of Greeley - net of repayments 0 0 0 (41,942) -- Interest paid on long-term debt (10,526) 0 (10,526) (14,345) Acquisitions of property and equipment (4,015,547) 0 (4,015,547) (4,428,812) Net cash used in capital and related financing activities (255,818) 0 (255,818) (104,936) 5 Proprietary Fiduciary Totals Fund Types Fund Types (Memo Only) Enterprise Pension Trust 2000 1999 CASH FLOWS FROM INVFSTING ACTIVITIFS _ Purchase of investments 0 (25,430) (25,430) (21,135) Proceeds from sale of investments 0 175 175 3,768 Interest on investments 7,256 0 7,256 7,273 _ Net cash from (used in) investing activities 7,256 (25,255) (17,999) (10,094) NET INCREASE (DFCREASE) IN CASH (144,441) 3,589 (140,852) 149,262 CASH Beginning of year 316,983 376 317,359 168,097 End of year $ 172,542 $ 3,965 $ 176,507 $ 317,359 The accompanying footnotes are an integral part of this report. 6 GREELEY-WELD COUNTY AIRPORT AUTHORITY Footnotes to Financial Statements December 31. 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNT POLICIES The Authority follows generally accepted accounting principles applicable to governmental entities as defined by the Governmental Accounting Standards Board and the Financial Accounting Standards Board, as applicable. General The Greeley-Weld County Airport Authority is a political subdivision of the State of Colorado. The Authority currently operates as the Greeley-Weld County Airport. The Authority was created on August 11, 1978 by joint action of the City of Greeley, Colorado and the County of Weld, Colorado. Prior to 1978, the Weld county Municipal Airport was jointly operated by Weld County and the City of Greeley. The Authority is administered by a seven member board of commissioners appointed by the governmental units that established the entity. The mission of the Authority is to operate and maintain a safe, efficient and fiscally responsible aviation gateway to the National Aviation System in support of the economic development of the airport service area. Financial reporting entity The financial report of the Authority includes all of the integral parts of the Authority's operations. The Authority has determined that it has no component units required to be included in the reporting entity because of operational or financial relationships with the Authority, according to criteria as defined by Governmental Accounting Standards Board (GASB) Statement 14. To be included, a voting majority of the component unit's board must be appointed by the primary government (PG) (or other stand-alone government treated as such), and either (a) the PG must be able to impose its will, or (b) the PG may potentially benefit financially or be financially responsible for the component unit. The Authority was considered as a component unit of City of Greeley, Colorado, and County of Weld, Colorado. After applying the above criteria, the Authority was treated as a stand-alone jointly governed organization with characteristics similar to that of a primary government. Basis of presentation The accounts of the Authority are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds used by the Authority are grouped into two broad categories and two generic fund types as follows: PROPRIETARY FUNDS Proprietary funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with the fund's activity are included on the balance sheet. Fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenue) and decreases (expenses) in net total assets. The Authority applies all applicable FASB pronouncements issued on or before November 30, 1989, in accounting and reporting for its proprietary operations. Enterprise Funds - Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body and/or regulatory agencies is to provide goods and services on a continuing basis, the costs associated with these to be recovered primarily through user charges; or (b) where the governing body and/or regulatory agencies have decided that periodic determination of revenues earned, expenses incurred, and /or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Authority maintains one such fund -the Airport Fund. 7 NOTE 1 - Continued - FIDUCIARY FUNDS Fiduciary funds are established to record transactions relating to assets held by the Authority in the capacity of trustee, — custodian or agent for individuals, governmental entities and non-public organizations. These include expendable trust, non-expendable trust, pension trust and agency funds. Expendable trust funds are accounted for in essentially the same manner as governmental funds. Nonexpendable trust funds and pension trust funds are accounted for in essentially the _ same manner as proprietary funds. Agency funds are purely custodial (assets equal liabilities) and thus do not involve measurement of results of operations. Pension Trust Funds - Pension trust funds are used to account for assets held by the Authority in a trustee capacity for - individuals employed or formerly employed by the Authority. The Employees Pension Fund is such a trust fund. Basis of accounting -- Enterprise fund and pension trust fund revenues and expenses are recognized on the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when liabilities are incurred. Grant awards for capital purposes are recognized as contributed capital to the extent of costs incurred for capital acquisitions. The portion of the grant award which has been earned but not yet received is reflected as a receivable from the grantor. — Local government appropriations to the Airport which are restricted for the acquisition or construction of capital assets are recorded as contributed capital. - Contributions by the Authority to the pension trust are recognized as revenue when received. Accounts receivable Accounts receivable are stated at management's estimate of the net realizable amount. Accounts not considered collectible have been charged to current operations. Investments - Investments in the pension fund are reported at fair value. Inventories _ Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. Fixed assets accounting Fixed assets are recorded at acquisition cost or estimated historical cost. The Authority capitalizes fixed assets with a - minimum acquisition unit value of$1,000. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, as follows: Description U Buildings 3—40 years Vehicles, equipment and furniture 3—20 years Farm buildings and improvements 10-30 years Land improvements 5—30 years Depreciation of property and equipment acquired with grants and restricted local government appropriations (contributed assets) is charged to contributed capital. Compensated absences -- Accumulated unpaid vacation pay is accrued when incurred. The maximum accumulation of vacation leave is limited to two times the annual accrual - 8 hours per month for the first 4 years of employment, up to 13.33 hours per month after 20 years of employment. Employees are paid 100% of their accumulated vacation pay when they terminate their employment for any reason. 8 NOTE 1 - continued Budget information and control The annual budget of the Authority is prepared on the basis of the flow of financial resources or working capital, exclusive of the current portion of long-term debt or assets. The Authority is subject to the Colorado Local Government Budget Law. Appropriations lapse at the end of the budget year. The Authority must appropriate monies not greater than the budgeted total expenditures at which level actual expenditures may not exceed appropriations for the year. Generally, additional appropriations may be authorized by law during the year in cases of emergency caused by a public enemy or some contingency which could not have been reasonably foreseen at the time of adoption of the budget. The following calendar includes various deadlines for the budget process set by state statute. October 15 Submission of proposed budget to Board of Commissioners. "Notice of Budget" is published setting public hearing date. December 31 Budget must be adopted. Certified copy of budget is sent to the Division of Local Government within 30 days of adoption. Board of Commissioners appropriates funds for the budget year. Total columns on general purpose financial statements Total columns on the general purpose financial statements are captioned "Memo Only" to indicate that they are presented only to facilitate financial analysis. Data in those columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Intangible assets The cost of Authority adopted plans are capitalized and amortized over 5 years using the straight-line method. NOTE 2 —MASTER/INFRASTRUCTURE DESIGN PLANS At December 31, 2000, Authority adopted plans consisted of the following: Airport Master Infrastructure Plan Design Plan Total Cost $ 44,160 $ 32,178 $ 76,338 Less accumulated amortization 39,952 4,291 44,243 Total $ 4,208 $ 27,887 $ 32,095 NOTE 3 - NOTES PAYABLE At December 31, 2000, notes payable consisted of the following: Monthly Payments Interest Issue Date of Original Balance Required Collateral Rate Date Maturity Amount 12/31/00 $ 5,200 Real Estate 5.50% 09/25/98 09/25/03 $ 272,147 $ 159,097 9 NOTE 3 - Continued Funds required for debt service as of December 31, 2000 are as follows: Year Principal Interest Total 2001 $ 54,775 $ 7,625 $ 62,400 2002 58,127 4,273 62,400 2003 46,195 1,063 47,258 Total $ 159,097 $ 12,961 $ 172,058 NOTE 4 - DEFERRED REVENUE - GAIN FROM SALE AND LEASEBACK OF HANGARS The Airport constructed four hangars in 1981 at a cost of$415,406. On December 3, 1982 the Airport entered into a sale- leaseback agreement under which the hangars were sold to a third party for $423,000. Gain on the sale of$36,998 was deferred to be amortized over the life of the hangars. During 1987 the Airport exercised an option to reacquire the hangars from the lessor for a stipulated price of$239,000. The portion of the gain recognized for 2000 was $1,992. — NOTE 5 - OPERATING LEASES Cancelable leases The Airport has ten hangars, three T-sheds and two office buildings in which space is leased to users of the Airport. Cost of the buildings, built between 1959 and 1996, was $1,059,999 with accumulated depreciation at December 31, 2000 of $843,964. There are 100 hangar units and 14 T-shed rental units. During 2000, monthly rental rates ranged from $100 to $335 for each hangar unit and $55 to $130 for each T-shed unit. Lease terms range from one month up to one year but are generally cancelable at any time at the lessee's option. The two office buildings and one hangar building with 2 hangars and an office are subject to annual leases with monthly rents of$1,290, $359, and $1,030, respectively. - Noncancelable land and/or terminal area leases The Authority leases depreciable property with a total cost of $1,866,466 and accumulated depreciation of $106,744 at December 31, 2000, and land under ground leases. Included in these amounts is the terminal, of which only a portion is leased, with a cost of $1,263,851 and accumulated depreciation of $18,431 at December 31, 2000. The following is a schedule by years of minimum future rentals of noncancelable operating leases on land and/or terminal area as of December 31, 2000: Year 2001 $ 167,378 2002 171,484 2003 187,625 2004 181,666 2005 135,351 Later years 1,758,224 Total minimum future rentals $ 2,601,728 Noncancelable land rents received in advance as of December 31, 2000 was $170,175, and is recognized as revenue annually for the amount of$2,278. 10 NOTE 6 - CHANGES IN CONTRIBUTED CAPITAL Changes in contributed capital for the year ended December 31, 2000, are summarized by source as follows: Contributed capital, January 1, 2000 as restated (Note 17) $ 16,915,346 Add current contributions: Federal Aviation Administration 2,666,307 State of Colorado City of Greeley, Colorado appropriations 146,591 County of Weld, Colorado appropriations \ U6,591 Total current contributions 3,165,744 Less depreciation and amortization on contributed property 502,882 Contributed capital, December 31, 2000 $19,578,208 NOTE 7 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS The Authority maintains one enterprise fund which is intended to be self-supporting through fees charged for services and sales to the public. To assure that the financial statements are not misleading, certain segment information for the year ended December 31, 2000, is presented as follows: FINANCIAL POSITION INFORMATION Net working capital $ 191,479 Property, plant and equipment: Additions - at cost $ 3,250,519 Deletions - at cost $ 174,944 NOTE 8 - FIXED ASSETS A summary of enterprise fund fixed assets at December 31, 2000 follows: Land $ 4,645,651 Land improvements 16,449,238 Buildings and improvements 2,543,272 Vehicles, equipment and furniture 558,764 Construction in progress - runway expansion/terminal 658,153 Total 24,855,078 Less accumulated depreciation 4,640,394 Total $20,214,684 As of December 31, 2000, the Authority had construction commitments totaling $1,712,670 toward runway expansion and terminal building construction. 11 NOTE 9 - CASH AND INVESTMENTS Deoosits The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligible depositories must be Colorado institutions and must maintain Federal insurance (FDIC) on — deposits held. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. The institution is allowed under PDPA provisions to create a single collateral pool for all public funds. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be equal to at least 102% of the uninsured deposits. The Authority's deposits are categorized as either (1) insured or for which the collateral securities are held by the Authority or its agent in the Authority's name, or (2) uninsured for which the collateral securities are held by the counter party's trust department or agent in the Authority's name, or (3) uninsured and unregistered for which the securities are held by the counter party, or by its agent but not in the Authority's name. - The District's cash is summarized and deposits are categorized as follows at December 31, 2000: Category Bank Carrying 1 2 3 Balance Amount Money market savings $ 100,000 0 $ 42,411 $ 142,411 $ 142,411 - Checking account 2,000 0 0 2,000 2,000 $ 102,000 $ 0 $ 42,411 $ 144,411 144,411 _ Cash in money market mutual fund 741 Cash with Weld County Treasurer 26 Cash on hand 31,329 Total cash $ 176,507 Investments In addition to funds deposited with approved financial institutions, Colorado statutes authorize the Authority to invest in specific instruments which meet defined rating and risk criteria, as follows: * Obligations of the United States and certain government agency securities * Certain international agency securities * General obligation and revenue bonds of U.S. local government entities — * Bankers' acceptance of certain banks * Commercial paper * Local government investments pools * Written repurchase agreements collateralized by certain authorized securities * Certain money market funds * Guaranteed investments contracts At December 31, 2000, the Authority's investments consisted of the following: Carrying Amount and Fair Value Mutual funds $ 77,997 12 NOTE 10 - ECONOMIC DEPENDENCY The Authority billed a total of $12,826 in land rent and $89,036 in fuel and other sales to related corporate customers during 2000. The fuel sales represent 20% of net sales and the total revenue from these customers represents 12% of total operating revenues before deduction of cost of sales. The total amount receivable from these customers at December 31, 2000 was $9,199. NOTE 11 - COMPLIANCE WITH TAXPAYER'S BILL OF RIGHTS On November 3, 1992, Colorado voters enacted the Taxpayer's Bill of Rights (TABOR). The net financial effect of this amendment to the state constitution relates to the limitation of the amount of revenue, after 1992, able to be spent or retained by a Colorado governmental entity subject to its provisions. Generally, subject revenue may be increased annually to the extent of the combined percentage increase in inflation and growth in actual value of real property within the government's boundaries. Also, Colorado governments are still subject to restrictions under laws existing prior to November 3, 1992, until changed by the voters. Revenue in excess of limitations must be refunded to taxpayers unless voters approve the retention of such revenue. TABOR also restricts the imposition, without prior voter approval, new or increased taxes, increasing a property tax mill levy above that of the prior year, extending expiring taxes or changing tax policies causing net revenue increases. TABOR generally forbids debt or other financial obligations (including pension) with maturities in excess of one year without prior voter approval. TABOR is complex and subject to judicial interpretation. The Authority's governing board has adopted the position that it is not subject to the provisions of TABOR because the governing board is not an elected board, does not have an electoral constituency, and does not have the power to impose taxes, all basic operational requirements of TABOR. NOTE 12 - CONDITIONAL GIFT On April 9, 1993, the Authority received, as a conditional gift from the U.S. Aerospace Maintenance and Regeneration Center, a GT-38A jet aircraft solely for use as a static display. The conditions for transfer include (a) the Authority may not dispose of the aircraft without prior approval of the transferor or use it as security and (b) if not used as a static display or if the Authority does not wish to retain the aircraft, title reverts to transferor. All costs associated with the transport, maintenance and disposition of the aircraft are the responsibility of the Authority. The aircraft has been properly decommissioned and therefore, is not in flying condition. The value of this conditional gift is not readily determinable and it has not been capitalized. NOTE 13 - DEFINED CONTRIBUTION PENSION PLAN Plan description The Greeley-Weld County Airport Authority Retirement Plan (Plan) is a single-employer plan that administers the Authority's defined contribution pension plan for its employees. The Authority is the sole contributor to the Plan. All full- time employees of the Authority are covered by the defined contribution pension plan. As of December 31, 2000, the Plan's current membership was 11. A defined contribution pension plan provides pension benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual's account are to be determined, instead of specifying the amount of benefits the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant's account, the returns earned on investments of those contributions, and forfeitures of other participants' benefits that may be allocated to such participant's account. Employees do not contribute to the Plan. Employer contributions are discretionary and are fully vested after 5 years of service. An employee who leaves the employment of the Authority is entitled to the vested amount in his account. The retirement age may be the earlier of (a) age 55 after completing 5 years of service or (b) the later of age 65 or the 5th anniversary of the first day of the Plan year in which participation commences. Benefits are payable in a lump sum. 13 NOTE 13 -Continued - During 2000, the Authority's discretionary contribution was $14,377 which was 6.82% of its current-year covered payroll of $210,715. Total payroll for 2000 was $247,258. — Basis of accounting Plan financial statements are prepared using the accrual basis of accounting. Employer contributions are recognized in the period that the contributions are due. Method used to value investments Plan investments are reported at fair value. See Note 9. NOTE 14 - RISK MANAGEMENT . The Authority is exposed to losses related to torts; theft of, damage to, or destruction of assets; errors and omissions; job- related illnesses or injuries to employees, and natural disasters. The Authority purchases sufficient commercial insurance to cover losses from these events other than deductibles, and does not self-insure or participate in a public entity risk pool. All risk management activities are accounted for in the Airport Fund. Settlement amounts have not exceeded insurance coverage for the current year or the three prior years. Expenditures and claims are recognized when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. In determining claims, events that might create claims, but for which none have been reported, are considered. NOTE 15 - FEDERAL GRANTS In the normal course of operations, the Authority receives grant funds from various Federal and State agencies. The grant programs are subject to audit by agents of the granting authority, the purpose of which is to ensure compliance with conditions precedent to the granting funds. Any liability for reimbursement which may arise as the result of these audits is not believed to be material. Grants from the U.S. Department of Transportation, Federal Aviation Administration were awarded for a total of - $14,457,099 for a 90% share of a portion of an airport development project, including environmental assessment, land acquisition and related costs, county road paving, and runway design and development. As of December 31, 2000, $14,522,964 of qualifying project costs have been incurred, with $13,070,668 reimbursable by the FM, and $404,536 __ reimbursable by each Weld County and City of Greeley, and $643,224 reimbursable by the State of Colorado. NOTE 16—DISCONTINUED OPERATIONS Effective August 1, 2000, the Authority terminated the provision of aircraft fueling and support services. As of this date a new lessee will provide such services for a period ending July 31, 2010. For the period from August 1, 2000 to December — 31, 2000, rents will total $62,200 annually payable on a monthly basis. From January 1, 2003 to July 31, 2005, rents will total $80,000 annually payable on a monthly basis. From August 1, 2005, to July 31, 2010, rents will be the then current rental rates charged by the Authority adjusted annually for annual CPI changes. Property rented will include office and consumer lobby area, equipment storage building, aircraft parking apron, and until August 1, 2003, the fuel farm and various equipment related to aircraft support services. As of August 1, 2003, lessee has the first option to purchase the aircraft support equipment (other than the fuel farm systems) at a mutually agreed price. Lessee also has the option for three successive ten-year extensions on the lease. The lessee purchased the remaining resale inventory of the Authority at cost for$14,074, and the employees providing the related services are not now employed by the Authority, but were considered for employment or hired by the lessee. All — other assets of the aircraft fueling and support operations have been retained. The initial rent rates were determined with the intent of maintaining, at a minimum, the annual net revenue of such operations the Authority produced. 14 NOTE 17- PRIOR PERIOD ADJUSTMENT Retained earnings of the Airport Fund (an enterprise fund) was increased by $7,700 as of December 31, 1999 by reducing contributed capital for local government appropriations in 1998 actually used to reimburse current expenditures for that year. The adjustments are as follows as of December 31, 1999: Retained Contributed Earnings Capital Balance, as originally stated $ 612,251 $ 16,923,046 1998 current expenditure reimbursements reclassified 7,700 (7,700) Balance, as restated $ 619,951 $ 16,915,346 The respective amounts in the total columns for 1999 have been restated to reflect these adjustments. 15 COLE AND CROSIER, P.C. 111 MAIN STREET CERTIFIED PUBLIC ACCOUNTANTS LA SALLE,COLORADO 80645 (970)284-5545 INDEPENDENT AUDITOR'S REPORT ON INDIVIDUAL FUND FINANCIAL STATEMENTS, SCHEDULES AND STATISTICAL DATA Board of Commissioners -- Greeley-Weld County Airport Authority Greeley, Colorado Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The individual fund financial statements, schedules and statistical data listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of Greeley-Weld County Airport Authority. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements. In our opinion, the accompanying information is fairly stated in all material respects - in relation to the general purpose financial statements taken as a whole for the year ended December 31, 2000. We have also previously audited, in accordance with auditing standards generally accepted in the United States of - America, the general purpose financial statements of Greeley-Weld County Airport Authority for the years ended December 31, 1991 to 1999 (none of which are presented herein). In our opinion, the individual fund financial statements, schedules and statistical data, listed in the table of contents related to the 1991 to 1999 general purpose financial statements are fairly stated in all material respects in relation to the basic financial statements from which it has been - derived. Cole and Crosier, P.C. Certified Public Accountants LaSalle, Colorado August 7, 2001 16 MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS INDIVIDUAL FUND FINANCIAL STATEMENTS, SCHEDULES AND STATISTICAL DATA The individual fund financial statements present a summary of the financial position of all funds of a given fund type and of the operating results of the same funds. Schedules are presented featuring data prepared on a legal compliance basis or __ basis differing from generally accepted accounting principles. Statistical data provide readers with a broader understanding of the government and the trends in its financial affairs than is possible from the financial statements and supporting schedules. ENTERPRISE FUNDS Enterprise Funds account for those activities where measurement of net income is of primary concern for the purpose of setting user rates or determining other fees. The Enterprise Funds consist of the following individual fund: AIRPORT FUND The Airport Fund accounts for assets, liabilities, revenues and expenses involved in the general operations of the airport and its terminal. The fund's principal source of revenue is land and hangar leases charged to airport operators and fuel sales charged to general airport users. GREELEY-WELD COUNTY AIRPORT AUTHORITY Airport Fund Comparative Balance Sheet December 31. 2000 and 1999 2000 1999 ASSFTS CURRFNT ASSFTS Cash on hand $ 28,105 $ 2,324 Cash in checking 2,000 2,020 Cash with Weld County Treasurer 26 186,923 Cash in money market account- (2000 -4.12% -4.40%; 1999 -4.64%) 142,411 125,716 Receivables Leases and sales 63,442 92,350 Grants and capital contributions Federal Aviation Administration 335,323 772,635 Weld County matching 15,521 78,007 City of Greeley matching 35,214 83,769 State of Colorado 4,194 112,226 Colorado fuel and sales tax distribution 15,911 8,572 Inventories 0 32,272 Prepaid expenses Insurance 15,268 6 Other 343 5,181 Total current assets 657,758 1,502,001 PROPERTY AND EQUIPMENT Land 4,645,651 4,645,651 Land improvements 16,449,238 5,045,487 Buildings and improvements 2,543,272 1,363,445 Vehicles, equipment and furniture 558,764 564,614 Construction in progress 658,153 10,160,304 24,855,078 21,779,501 Less accumulated depreciation 4,640,394 4,201,525 Property and equipment- net 20,214,684 17,577,976 OTHER ASSFTS Master plan - net of accumulated amortization (2000 -$39,952; 1999 -$33,644) 4,208 10,516 Infrastructure design plan - net of accumulated amortization ($4,291) 27,887 0 Total other assets 32,095 10,516 TOTAL ASSFTS $20,904,537 $ 19,090,493 2000 1999 I IARII ITIFS AND FUND FQUITY CURRENT I IABII ITIFS Current portion of long-term debt $ 54,775 $ 51,736 Current portion of deferred gain 1,305 1,992 Current portion of deferred revenue 2,278 2,278 Accounts payable 330,601 1,096,838 Due to Employees Pension Fund 0 3,258 Customer deposits 9,743 5,608 Accrued interest payable 264 349 Compensated absences 10,649 16,022 Accrued wages 7,536 12,370 Payroll and other taxes payable 576 969 Deferred revenue- leases 48,552 33,061 Total current liabilities 466,279 1,224,481 J ONG-TFRM I IARII ITIFS Note payable- bank 159,097 210,971 Deferred gain on sale and leaseback of hangars 1,305 3,297 Deferred lease revenue -Air National Guard 170,175 172,453 330,577 386,721 Less portion due within one year 58,358 56,006 Total long-term liabilities 272,219 330,715 Total liabilities 738,498 1,555,196 FUND EQUITY Contributed capital 19,578,208 16,915,346 - Retained earnings - unreserved 587,831 619,951 Total fund equity 20,166,039 17,535,297 - TOTAL LIABILITIES AND FUND FQUITY $20,904,537 $19,090,493 17 GREELEY-WELD COUNTY AIRPORT AUTHORITY Airport Fund Schedules of Financial Resources Provided, Applied and Changes in Working Capital - Budget and Actual For the Years Ended December 31. 2000 and 1999 Variance Favorable 1999 Budget Actual (Unfavorable) Actual FINANCIAL RESOURCFS PROVIDFr) $ 6,733,487 $ 3,749,987 $ (2,983,500) $ 5,803,029 FINANCIAL RESOURCFS APPI IFQ _ Current ooerating exnenses 514,449 488,664 25,785 478,922 Capital outlay Property and equipment 6,142,172 3,282,697 2,859,475 4,865,375 Debt service _ Interest expense 10,490 10,441 49 13,219 Principal 51,910 51,874 36 68,255 Total debt service 62,400 62,315 85 81,474 TOTAL RESOURCES APPI IFQ 6,719,021 3,833,676 2,885,345 5,425,771 INCREASE (DECREASE) IN FINANCIAL RFSOIIRCFS 14,466 (83,689) (98,155) 377,258 *WORKING CAPITAL (DEFICIT) Beginning of year 347,708 333,526 (14,182) (43,732) End of year $ 362,174 $ 249,837 $ (112,337) $ 333,526 " Current assets minus current liabilities net of current portion of long-term liabilities and assets. 18 GREELEY-WELD COUNTY AIRPORT AUTHORITY Airport Fund Schedules of Financial Resources Provided - Budget and Actual For the Years Ended December 31. 2000 and 1999 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Sales Aviation fuel $ 257,040 $ 216,097 $ (40,943) $ 286,005 Jet fuel 516,600 282,748 (233,852) 438,331 Oil 1,300 520 (780) 1,158 Vending/catering 1,000 541 (459) 1,016 Pilot supplies 24,000 13,429 (10,571) 26,340 Volume discounts (111,800) (58,390) 53,410 (104,303) Total net sales 688,140 454,945 (233,195) 648,547 Cost of sales Aviation fuel 165,240 142,531 22,709 171,416 Jet fuel 243,540 153,994 89,546 187,977 Oil 1,040 384 656 918 Vending/catering 900 419 481 925 Pilot supplies 19,200 9,284 9,916 17,882 Total cost of sales 429,920 306,612 123,308 379,118 gross margin 258,220 148,333 (109,887) 269,429 J eases and rentals Land rents 88,995 116,545 27,550 70,837 Air National Guard land 2,278 2,278 0 2,278 Hangar rents 224,190 218,817 (5,373) 214,685 Tiedown 2,000 2,491 491 2,031 Office and restaurant 5,136 5,136 0 5,136 Total leases and rentals 322,599 345,267 22,668 294,967 Charges for services Fuel flow fees 5,700 6,621 921 4,741 Oxygen filling fees 1,200 540 (660) 1,160 Total charges for services 6,900 7,161 261 5,901 Aerators licenses 2,500 2,500 0 2,500 Other operating revenue Colorado fuel and sales tax distribution 28,974 29,125 151 25,532 - Finance charges 800 108 (692) 857 Miscellaneous revenue 1,500 4,721 3,221 1,597 Total other operating revenue 31,274 33,954 2,680 27,986 19 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Farm revenue — Cash rents 28,322 28,334 12 28,237 Other financial resources provided _- Grants from FAA 5,158,000 2,666,307 (2,491,693) 3,725,791 Grants from State of Colorado 366,556 206,255 (160,301) 440,223 Local government appropriations 550,616 293,182 (257,434) 920,467 __ Earnings on investments 7,000 7,256 256 7,273 Oil and gas royalties and leases 1,500 13,716 12,216 1,884 Proceeds from sale of assets 0 0 0 8,706 _ Amortization of long-term portion - Air National Guard lease revenue 0 (2,278) (2,278) 69,665 Total other resources provided 6,083,672 3,184,438 (2,899,234) 5,174,009 TOTAL RESOURCFS PROVIDFQ $ 6,733,487 $ 3,749,987 $ (2,983,500) $ 5,803,029 20 GREELEY-WELD COUNTY AIRPORT AUTHORITY Airport Fund Schedules of Current Operating Expenses - Budget and Actual For the Years Ended December 31. 2000 and 1999 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Personnel services Salaries and wages $ 289,545 $ 247,258 $ 42,287 $ 269,200 FICA/Medicare 21,603 19,421 2,182 20,567 Health and life insurance 23,508 18,471 5,037 19,909 Worker's compensation 10,357 9,577 780 7,071 Retirement contributions 14,377 14,377 0 12,928 Total personnel services 359,390 309,104 50,286 329,675 Contractual services Auditing 5,000 5,000 0 5,000 Retirement plan administration fees 1,000 1,212 (212) 988 Security 900 1,079 (179) 895 Legal 3,000 3,270 (270) 810 NYDES group permit assessment 159 159 0 159 Website fees/other professional fees 3,000 1,898 1,102 560 Total contractual services 13,059 12,618 441 8,412 Supplies Office supplies 2,500 2,949 (449) 2,321 Computer software 500 282 218 881 Operating supplies 6,000 6,093 (93) 5,273 Durable supplies/tools 2,500 3,596 (1,096) 2,562 Uniforms and clothing 7,000 5,075 1,925 5,387 Total supplies 18,500 17,995 505 16,424 Repairs and maintenance Buildings 8,500 12,415 (3,915) 10,857 Equipment 10,000 11,381 (1,381) 14,129 Grounds 8,000 7,812 188 7,855 Total repairs and maintenance 26,500 31,608 (5,108) 32,841 I ltilities Telephone/pager 9,000 11,620 (2,620) 8,608 Electric 16,000 20,141 (4,141) 18,487 Water 3,500 7,095 (3,595) 1,954 Gas 6,500 12,005 (5,505) 6,317 Total utilities 35,000 50,861 (15,861) 35,366 21 Variance Favorable 1999 _ Budget Actual (Unfavorable) Actual Other _ Insurance 26,000 25,754 246 25,103 Equipment rent 1,000 1,011 (11) 630 Fly-in - net of related revenue of (2000 - $575; 1998 - $200) 4,000 3,882 118 1,338 Credit card process charges 5,000 5,219 (219) 5,705 Dues and subscriptions 2,000 1,962 38 1,765 Miscellaneous 1,500 2,428 (928) 1,153 _ Bad debts 500 6,479 (5,979) 0 Postage 2,500 2,008 492 2,408 _ Promotion and advertising 4,000 2,922 1,078 4,585 Fuel for equipment 6,000 6,370 (370) 5,112 Meetings and travel 9,500 8,443 1,057 8,405 Total other 62,000 66,478 (4,478) 56,204 TOTAL CURRENT OPERATING EXPFNSFS $ 514,449 $ 488,664 $ 25,785 $ 478,922 22 TRUST FUNDS Trust funds are established to record transactions relating to assets held in the capacity of trustee for individuals, governmental entities and non-public organizations. The Employees Pension Fund accounts for assets, liabilities, revenues and expenditures for the locally controlled employee pension plan. The principal sources of revenue for this fund are investment earnings and contributions by the Authority. GREELEY-WELD COUNTY AIRPORT AUTHORITY Employees Pension Fund Schedules of Revenues, Expenses and Changes in Fund Balance -Budget and Actual For the Years Ended December 31. 2000 and 1999 Variance Favorable 1999 Budget Actual (Unfavorable) Actual OPFRATING RFVFNUFS Employer contributions $ 14,377 $ 14,377 0 $ 12,928 Earnings on investments 1,000 11,459 $ 10,459 5,520 Realized and unrealized gains (losses) on investments 0 (27,107) (27,107) 20,731 Total revenues 15,377 (1,271) (16,648) 39,179 OPFRATING FXPENSFS Administration fees 0 250 (250) 225 NET INCOME (LOSS). 15,377 (1,521) (16,898) 38,954 FUND BAI ANCF Beginning of year 58,457 83,483 25,026 44,529 End of year $ 73,834 $ 81,962 $ 8,128 $ 83,483 23 GREELEY-WELD COUNTY AIRPORT AUTHORITY Statistical Data 1 ast Ten Fiscal Years 2000 1999 1998 1997 FNTFRPRISF FUND Fxpenses by type Personnel services $ 309,104 $ 329,675 $ 309,791 $ 277,283 Contractual services 12,618 8,412 17,831 14,402 Supplies 17,995 16,424 16,706 23,069 Repairs and maintenance 31,608 32,841 36,869 35,759 Utilities 50,861 35,366 36,457 37,051 Other operating expenses 66,478 56,204 54,948 59,334 Farm expenses 0 0 0 0 Total operating expenses 488,664 478,922 472,602 446,898 Interest expense 10,441 13,219 23,404 28,094 Depreciation and amortization 600,474 342,791 319,976 300,514 Total expenses $ 1,099,579 $ 834,932 $ 815,982 $ 775,506 Revenues by source Net sales $ 454,945 $ 648,547 $ 729,986 $ 662,816 Cost of sales 306,612 (379,118) (409,516) (424,546) Gross margin 148,333 269,429 320,470 238,270 Leases and rentals 345,267 294,967 267,847 264,169 Charges for services 7,161 5,901 4,605 1,615 Other operating revenues 33,954 28,237 30,899 23,184 Operators licenses 2,500 2,500 2,500 3,625 Farm revenue 28,334 27,986 27,324 23,586 Total operating revenues 565,549 629,020 653,645 554,449 Earnings on investments 7,256 7,273 8,667 5,670 Oil and gas lease revenue 13,716 1,884 2,157 3,180 Gain (loss)on disposal of assets (21,944) 10,258 6,325 25,177 Miscellaneous revenue 0 0 6,903 7,667 Total revenues $ 564,577 $ 648,435 $ 677,697 $ 596,143 Operating income before depreciation $ 76,885 $ 150,098 $ 181,043 $ 107,551 Fund equity -end of year Contributed capital $ 19,578,208 $ 16,915,346 $ 12,080,576 $ 6,918,922 Retained earnings 587,831 619,951 554,737 448,656 Total fund equity $20,166,039 $ 17,535,297 $ 12,635,313 $ 7,367,578 Net working capital (deficit) -end of year $ 191,479 $ 277,520 $ (116,084) $ (1,136,485) Total outstanding debt - end of year $ 159,097 $ 210,971 $ 264,226 $ 412,333 24 1996 1995 1994 1993 1992 1991 $ 241,866 $ 246,713 $ 202,198 $ 196,541 $ 165,990 $ 157,590 23,540 28,620 11,143 11,150 18,839 7,805 19,297 20,084 14,462 12,497 9,545 10,515 53,909 34,450 32,972 26,788 22,586 29,611 38,121 32,612 29,494 27,288 26,254 27,839 60,538 51,621 91,389 43,474 52,130 60,819 0 0 0 0 0 2,423 437,271 414,100 381,658 317,738 295,344 296,602 26,832 21,986 22,750 28,917 32,449 36,599 288,199 273,773 269,887 265,595 264,231 251,542 $ 752,302 $ 709,859 $ 674,295 $ 612,250 $ 592,024 $ 584,743 $ 618,065 $ 703,845 $ 633,880 $ 610,047 $ 542,138 $ 548,261 (409,140) (446,968) (414,672) (401,093) (365,249) (373,206) 208,925 256,877 219,208 208,954 176,889 175,055 241,467 231,345 233,153 230,810 226,033 211,143 2,444 1,731 2,603 2,721 3,223 14,613 22,941 29,944 24,868 28,828 31,617 22,663 4,300 3,200 3,500 2,700 3,000 4,006 17,280 17,280 17,280 10,280 10,900 10,734 497,357 540,377 500,612 484,293 451,662 438,214 2,963 2,108 1,583 1,492 3,248 4,870 3,676 2,763 5,823 2,139 3,288 4,368 2,128 13,963 2,092 2,042 3,492 993 7,480 7,599 0 0 0 0 $ 513,604 $ 566,810 $ 510,110 $ 489,966 $ 461,690 $ 448,445 $ 60,086 $ 126,277 $ 118,954 $ 166,555 $ 156,318 $ 141,612 $ 4,352,887 $ 4,422,242 $ 4,587,040 $ 4,777,368 $ 4,886,097 $ 5,070,138 407,870 429,508 363,818 322,995 245,432 175,163 -- $ 4,760,757 $ 4,851,750 $ 4,950,858 $ 5,100,363 $ 5,131,529 $ 5,245,301 $ 109,659 $ 243,332 $ 212,195 $ 181,229 $ 140,574 $ (190,946) $ 454,291 $ 360,037 $ 303,059 $ 342,917 $ 451,833 $ 445,552 25 COMPLIANCE REPORTS AND SCHEDULES The compliance reports and schedules provide information required by the "Single Audit Act Amendments of 1996" and promulgations by the Government Accounting Office (GAO). The objective of the Act is to establish uniform audit requirements of the various federal awards programs available, on an entity-wide basis rather than a program-by-program basis. It further imposes requirements beyond generally accepted auditing standards, relating to testing of, and reporting on, internal controls and compliance with laws and regulations. I COLE AND CROSIER, P.C. 111 MAIN STREET LA SALLE,COLORADO 80645 CERTIFIED PUBLIC ACCOUNTANTS (970)284-5545 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS --- Board of Commissioners Greeley-Weld County Airport Authority Greeley, Colorado We have audited the general purpose financial statements of Greeley-Weld County Airport Authority as of and for the year ended December 31, 2000, and have issued our report thereon dated August 7, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. — Compliance As part of obtaining reasonable assurance about whether Greeley-Weld County Airport Authority's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of _ laws, regulations, 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 Greeley-Weld County Airport Authority's internal control over financial — reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose 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 general purpose 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 Greeley-Weld County Airport Authority, in a separate letter dated August 7, 2001. This report is intended solely for the information and use of the board of commissioners, management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Cole and Crosier, P.C. Certified Public Accountants LaSalle, Colorado August 7, 2001 26 MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ' COLE AND CROSIER, P.C. 111 MAIN STREET CERTIFIED PUBLIC ACCOUNTANTS LA SALLE,COLORADO 80645 (970)284-5545 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of Commissioners Greeley-Weld County Airport Authority Greeley, Colorado - Compliance We have audited the compliance of Greeley-Weld County Airport Authority, 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, 2000. Greeley-Weld County Airport Authority'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 Greeley-Weld County Airport Authority's management. Our responsibility is to express an opinion on Greeley-Weld County Airport Authority'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 major federal program occurred. An audit includes examining, on a test basis, evidence about Greeley-Weld County Airport Authority'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 Greeley-Weld County Airport Authority's compliance with those requirements. — In our opinion, Greeley-Weld County Airport Authority, compiled, 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, 2000. _ Internal Control Over Compliance The management of Greeley-Weld County Airport Authority 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 Greeley-Weld County Airport Authority's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a 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 that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider - to be material weaknesses. 27 MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Schedule of Expenditures of Federal Awards We have audited the general purpose financial statements of Greeley-Weld County Airport Authority, as of and for the year - ended December 31, 2000, and have issued our report thereon dated August 7, 2001. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the general purpose financial statements of Greeley-Weld County Airport Authority. Such - information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. This report is intended solely for the information and use of the board of commissioners, management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these _ specified parties. Cole and Crosier, P.C. Certified Public Accountants LaSalle, Colorado _ August 7, 2001 28 GREELEY-WELD COUNTY AIRPORT AUTHORITY Schedule of Expenditures of Federal Awards For the Year Ended December 31. 2000 Federal Federal CFDA Disbursements/ Federal Grantor/Program Title Number Expenditures U.S. Department of Transportation/Federal Aviation Administration Airport Improvement Program 20.106 Project No. 3-08-0028-07 0 Project No. 3-08-0028-08 0 Project No. 3-08-0028-09 $ 286,138 Project No. 3-08-0028-10 689,673 Project No. 3-08-0028-11 1,690,496 Total expenditures of federal awards $ 2,666,307 The accompanying footnotes to schedule of expenditures of federal awards are an integral part of this report. 29 GREELEY-WELD COUNTY AIRPORT AUTHORITY Footnotes to Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2000 General The accompanying Schedule of Federal Financial Assistance presents the activity of all expenditures of federal awards of Greeley-Weld County Airport Authority's reporting entity as defined in Note 1 of the Authority's general purpose financial statements. -- Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the Authority's general purpose financial statements. Relationship to General Purpose Financial Statements Federal award revenues are reported in the Authority's general purpose financial statements as capital contributions as described in Note 6 to the Authority's general purpose financial statements, and expenditures are capitalized as enterprise fund fixed assets as described in Notes 8 and 15. 30 GREELEY-WELD COUNTY AIRPORT AUTHORITY Schedule of Findings and Questioned Costs Year Ended December 31. 2000 SUMMARY OF AUDIT RESULTS 1. The auditor's report expresses an unqualified opinion on the general purpose financial statements of Greeley- Weld County Airport Authority. 2. No reportable conditions relating to the audit of the general purpose financial statements were disclosed during the audit. 3. No instances of noncompliance material to the general purpose financial statements of Greeley-Weld County Airport Authority were disclosed during the audit. 4. No reportable conditions relating to the audit of the major federal award programs were disclosed during the audit. 5. The auditor's report on compliance for the major federal award programs for Greeley-Weld County Airport Authority expresses an unqualified opinion. 6. No reportable audit findings relative to the major federal award programs for Greeley-Weld County Airport Authority were disclosed during the audit. 7. The programs tested as major programs included: — U.S. Department of Transportation/Federal Aviation Administration Airport Improvement Program CDFA 20.106 8. The threshold for distinguishing Type A and B Programs was $300,000. 9. Greeley-Weld County Airport Authority was determined to be a low-risk auditee. FINDINGS- FINANCIAL STATEMENT AUDIT There were no findings. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT There were no findings or questioned costs. Summary Schedule of Prior Audit Findings Year Ended December 31. 2000 There were no prior audit findings. 31 COLE AND CROSIER, P.C. ra III 111 MAIN STREET CERTIFIED PUBLIC ACCOUNTANTS LA SALLE,COLORADO 80645 (970)284-5545 August 7, 2001 To the Board of Commissioners Greeley-Weld County Airport Authority We have audited the general purpose financial statements of Greeley-Weld County Airport Authority for the year ended December 31, 2000, and have issued our report thereon dated August 7, 2001. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under General Accepted Auditing Standards and OMB Circular A-133 As stated in our engagement letter dated December 1, 2000, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance about whether the general purpose financial statements are free of material misstatement. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or other illegal acts may exist and not be detected by us. In planning and performing our audit, we considered the Authority's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial reporting. We also considered 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. As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatement, we preformed 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. Also, in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the Authority's compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement applicable to each of its major federal programs for the purpose of expressing an opinion on the Authority's compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the Authority's compliance with those requirements. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the Authority are described in Note 1 to the general purpose financial statements. Accounting Estimates Accounting estimates are an integral part of the general purpose financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the general purpose financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The Authority does not record estimates that are particularly sensitive. MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLC ACCOUNTANTS Significant Audit Adjustments For purposes of this letter, professional standards define a significant audit adjustment as a proposed correction of the general purpose financial statements that, in our judgment, may not have been detected except through our auditing procedures. These adjustments may include those proposed by us but not recorded by the Authority that could potentially cause future financial statements to be materially misstated, even though we have concluded that such adjustments are not material to the current financial statements. We proposed several significant audit adjustments related to grant revenue and fixed assets, which are reflected in the general purpose financial statements. These adjustments were necessary to reflect additional construction in progress expenditures and reclassifications, and related qualified reimbursements under various grants. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the general purpose financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Independent Accountants In some, cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's general purpose financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Authority's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit. During our audit, we noted certain matters involving internal control as well as some operational matters, which we wish to convey to the Board for consideration. This letter does not affect our report dated August 7, 2001, on the general purpose financial statements. Grant Subsidiary Reconciliation with General Ledger It was necessary for us to delay completion of the audit because the reconciliation of the grant subsidiary records with the related general ledger accounts was not completed as of the year end. This operation is necessary to determine the actual total amount reimbursable and receivable under the various grants in effect, at any point during the year. Although differences between the subsidiary records and the general ledger accounts were not considered material in relation to the individual fund financial statements, periodic reconciliations are recommended to prevent such a situation in the future. We would like to thank the staff— Steve, Mike and the County staff of Janet and Claud for their full cooperation during the 2000 audit engagement. We feel strongly that the Authority has excellent professional people throughout the organization. This information is intended solely for the use of the Board of Commissioners and management of Greeley-Weld County Airport Authority and should not be used for any other purpose. However, this report is a matter of public record, and its distribution is not limited. Very truly yours, Cole and Crosier, P.C. Certified Public Accountants Hello