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WELD COUNTY RETIREMENT PLAN
Financial Statements for the
Year Ended December 31, 1990
and Independent Auditors' Report
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Deloitte &
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/\ Suite Bma ITT Telex: 4995604
560 Broadway Facsimile: (303) 830-2007
One Civic Center Plaza
Denver,Colorado 80202-5151
Telephone: (303)837-3000
INDEPENDENT AUDITORS' REPORT
Weld County Retirement Plan:
We have audited the accompanying balance sheet of the Weld County Retirement
Plan as of December 31, 199O, and the related statement of revenues, expenses
and changes in net assets available for benefits for the year then ended.
These financial statements are the responsibility of the County's management.
Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Weld County Retirement Plan as of
December 31, 199O, and the results of its operations for the year then ended
in conformity with generally accepted accounting principles.
The supplementary ten-year historical trend information on pages 7 and 8 is
not a required part of the basic financial statements but is 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
supplementary information. However, we did not audit the information and
express no opinion on it.
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May 17 , 1991
WELD COUNTY RETIREMENT PLAN
BALANCE SHEET
DECEMBER 31, 1990
ASSETS:
Cash (Note 3) $ 164,395
Investments (Note 4) 27,392,424
Accrued interest receivable 407,955
Other 79,109
Total assets 28,043,883
LIABILITIES - Accounts payable 66.350
NET ASSETS AVAILABLE FOR BENEFITS $27.977.533
See notes to financial statements.
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WELD COUNTY RETIREMENT PLAN
STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1990
OPERATING REVENUES:
Employee contributions (Notes 5 and 6) $ 960,439
Employer contributions (Notes 5 and 6) 960,439
Investment income 1,424.273
Total operating revenues 3.345.151
OPERATING EXPENSES:
Benefit payments 965,072
Refunds to terminated employees 311,494
Administrative 163,166
Total operating expenses 1,439.732
NET OPERATING INCOME 1,905,419
NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR 26,072.114
NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR $27.977.533
See notes to financial statements.
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WELD COUNTY RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 1990
1. PLAN DESCRIPTION
The Weld County Retirement Plan ("Plan") is a single-employer, trusteed,
defined benefit pension plan sponsored by Weld County, Colorado
("County") and administered by a five-member Retirement Board. All full
time County employees (except officers and employees of Federally-funded
programs) are required to participate in the Plan. At December 31,
1990, 876 current and former employees participated in the Plan and the
membership consisted of:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled to
benefits but not yet receiving them 218
Current employees:
Vested 243
Nonvested 415
Total 876
The Plan, established in 1969, provides for pension, death and
disability benefits. All participants are fully vested after 8 years of
service, except elected officials, who are fully vested regardless of
years of service.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity - The Plan is considered a component unit of the County
and is reported as a pension trust fund in the general purpose financial
statements of the County.
Basis of Accounting - The Plan uses the accrual basis of accounting.
Employee and employer contributions are recognized as revenues in the
period in which employee services are performed.
Investments - Investments are reported at cost or amortized cost subject
to adjustment for market value declines judged to be other than
temporary.
3. CASH
The Plan's cash balances are pooled with other cash and investments of
the County. All other deposits and investments of the Plan are
maintained separately from other County funds.
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4. INVESTMENTS
Statutes authorize the Plan to invest in obligations of the U.S.
Treasury, agencies, and instrumentalities, commercial paper, repurchase
agreements, common stocks, corporate bonds and mortgages.
The Plan's investments are categorized to give an indication of the
level of risk assumed by the entity at year-end. Category 1 includes
the investments that are insured or registered, or for which the
securities are held by the Plan or its agent in the Plan's name.
Category 2 includes uninsured and unregistered investments for which the
securities are held by the counterparty's agent in the Plan's name.
Investments as of December 31, 1990 were as follows:
Description Category 1 Category 2 Total
Corporate bonds $13,469,789 $13,469,789
Mortgages $ 3,146 3,146
Common stock 10,269,316 10,269,316
Treasury obligations 3,164,665 3,164,665
Trust funds 485.508 485.508
Total $26.903 ,770 $48_8,654 $27,392,424
The market value of investments totaled $27,659,703 at December 31,
1990.
5. FUNDING STATUS AND PROGRESS
The amount shown below as "pension benefit obligation" is a standardized
disclosure measure of the present value of pension benefits, adjusted
for the effects of projected salary increases, estimated to be payable
in the future as a result of employee service to date. The measure is
the actuarial present value of credited projected benefits and is
independent of the funding method used to determine contributions to the
Plan.
The pension plan obligation was determined as part of an actuarial
valuation at January 1, 1990. Significant actuarial assumptions used
include: (a) rate of return on the investment of present and future
assets of 7.58 per year compounded annually, and (b) projected salary
increases at various rates depending on attained age ranging from 7.58
for age 25 to 5.08 for age 64.
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At January 1, 1990 there are net assets in excess of the pension benefit
obligation, as follows:
Retirees and beneficiaries currently receiving
benefits $ 8,449,641
Terminated vested employees not yet receiving
benefits 290,465
Current employees:
Accumulated employee contributions including
allocated investment income 5,898,751
Employer-financed vested 1,985,290
Employer-financed nonvested 5,629,374
Total pension benefit obligation 22,253,521
Net assets available for benefits (at cost,
market value of $26,430,451) 26,072.114
Net assets in excess of pension benefit obligation $_3818_,593
6. CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE
By directive of the Retirement Board, participating employees are
required to contribute 6.08 of their compensation to the Plan which is
matched equally by the County. Contributions during 1990 for both the
County and the participating employees totaled $1,920,878. Total
covered payroll for year ended December 31, 1990 was $15,996,924.
7. SUPPLEMENTARY TEN-YEAR HISTORICAL TREND INFORMATION (UNAUDITED)
Ten-year historical trend information designed to provide information
about the Plan's progress in accumulating sufficient assets to pay
benefits when due is presented on pages 7 and 8.
• • • : * x
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WELD COUNTY RETIREMENT PLAN
TEN-YEAR HISTORICAL TREND INFORMATION
YEAR ENDED DECEMBER 31, 1990 (UNAUDITED)
ANALYSIS OF FUNDING PROGRESS
Net Assets
In Excess
Net Assets Pension of Pension
Available Benefit Percent Benefit
January 1 for Benefits Obligation Funded Obligation
1981 $ 6,364,130 $ 6,364,130 100.08
1982 6,747,934 6,747,934 100.08
1983 9,248,144 7,730,870 119.68 $1,517,274
1984 11,244,338 7,424,910 151.48 3,819,428
1985 12,970,501 9,267,695 140.08 3,702,806
1986 16,858,875 10,070,430 167.48 6,788,445
1987 20,121,008 15,836,511 127.18 4,284,497
1988 20,329,032 18,163,945 111.98 2,165,087
1989 22,477,627 20,213,686 111.28 2,263,941
1990 26,072,114 22,253,521 117.28 3,818,593
Analysis of the dollar amounts of net assets available for benefits and
pension benefit obligation in isolation can be misleading. Expressing the net
assets available for benefits as a percentage of the pension benefit
obligation provides one indication of the Plan's funding status on a going-
concern basis. Analysis of this percentage over time indicates whether the
system is becoming financially stronger or weaker. Generally, the greater
this percentage, the stronger the fund. Trends in net assets in excess of the
pension obligation are affected by inflation.
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WELD COUNTY RETIREMENT PLAN
TEN-YEAR HISTORICAL TREND INFORMATION
YEAR ENDED DECEMBER 31, 1990 (UNAUDITED)
REVENUES BY SOURCE
Employee Employer Investment
Year Contributions Contributions Income Total
1981 $526,569 $526,569 $ 468,727 $1,521,865
1982 595,893 595,893 1,074,456 2,266,242
1983 632,054 632,054 1,261,004 2,525,112
1984 666,393 666,393 1,043,786 2,376,572
1985 708,883 708,883 3,162,758 4,580,524
1986 743,931 743,931 2,598,746 4,086,608
1987 837,729 837 ,627 1,844,038 3,519,394
1988 869,404 869,404 1,697,180 3,435,988
1989 894,066 894,066 3,235,513 5,023,645
1990 960,439 960,439 1,424,273 3,345,151
EXPENSES BY TYPE
Administrative
Year Benefits Refunds Expenses Total
1981 $178,922 $235,113 $ 53,405 $ 467,440
1982 217,167 220,477 66,498 504,142
1983 263,080 267 ,431 84,059 614,570
1984 316,266 382,735 45,162 744,163
1985 438,398 192,416 91,491 722,305
1986 464,517 246,809 116,852 828,178
1987 602,568 230,810 108,459 941,837
1988 756,332 356,800 174,261 1,287,393
1989 864,493 426,608 138,057 1,429,158
1990 965,072 311,494 163,166 1,439,732
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