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Home My WebLink About921235.tiff - CERTIFIED PUBLIC ACCOUNTANTS B • R • O • C • K A N D COMPANY BUSINESS CONSULTANTS A PROFESSIONAL CORPORATION fej_poib . s THOMAS P.BROCK,C.P.A. NETH 5.ROPER,C.P.A. WATERSTREET CERTIFIED PUBLIC ACCOUNTANTS VANDERLYNN STOW C.P.A. LEER.ACKERMAN,C.R.A. 2595 CANYON BLVD,SUITE 340 SUSAN R.JOHNSON,CPA. LYN S.PRINO,CPA. BOULDER,CO 80302 / MARK R.KAUFMANN,C.PA. 444-2971 B • R • O • C • I\ FAX 444-0869 FIRST NATIONAL BANK BUILDING A N D 401 N.MAIN STREET,SUITE LONGMONT,CO 80501 776-2160 METRO:443-9993 COMPANY FAX 776-2431 UNITED BANK BLDG-SOUTH May 28, 1992 3500IFK PARKWAY,SUITE 320 BUSINESS CONSULTANTS FORTCOLLINS,CO 80525 223-7855 METRO:530-9343 A PROFESSIONAL CORPORATION FAX 223-3926 Weld County Retirement Plan Greeley, Colorado Members of the Board: We have completed our audit of the financial statements of the Retirement Plan for the year ended December 31, 1991. The audit was completed without difficulties or delays by management and no usual adjustments to the financial records as necessary. Our study and evaluations of the system of internal accounting control disclosed no condition we believed to be a material weakness. However, we do have the following comment for your review and consideration. We noted that the Plan's actuarial fees had increased from approximately $47,000 in 1989 to $59,000 in 1990, and to $68,000 in 1991. While some of these increases may have been due to special studies, changes in plan provisions, or other factors, we recommend the Board to consider moderating future increases through negotiation or fee proposals. It may also be useful for actuarial valuation reports to be obtained sooner after year end. We appreciate very much the cooperation of the County's Treasurer and staff. Please contact us if you have any questions or if we may be of further assistance. Very truly yours, BROCK AND COMPANY, CPAs, P.C. 806c taAcertos-- LPA:kw MEMBERS.AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PUBLIC AND PRIVATE COMPANIES PRACTICE SECTIONS THE CONTINENTAL ASSOCIATION OF CPA FIRMS, INC. WELD COUNTY RETIREMENT PLAN FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION Year Ended December 31, 1991 TABLE OF CONTENTS Independent Auditors' Report 2 STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS 3 STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS 4 NOTES TO FINANCIAL STATEMENTS 5 ADDITIONAL INFORMATION: Ten-Year Historical Trend Information 9 -1- THOMAS P BROCK,C.P.A. _uKNETH S.ROPER,C.PA. WATERSTREET CERTIFIED PUBLIC ACCOUNTANTS VANDER LYNN STOW,C.PA. LEE P ACKERMAN,CPA. 2595 CANYON BLVD,SUITE 340 SUSAN R.JOHNSON,C.P.A. LYN S.PRING,C.P.A. BOULDER,CO 80302 MARK R.KAUFMANN,C.P.A. 444-2971 B , R , O , K FAX 444-0869 FIRST NATIONAL BANK BUILDING A NI D 401 N.MAIN STREET,SUITE 2 LONGMON C CO 80501 776-2160 METRO:443-9993 COMPANY FAX 776-2431 NORWEST BANK BE DG BUSINESS CONSULTANTS 3500 FORTFK PARKWAY,COLLINS,CO 320 80525 223-7655 METRO-530-9343 A PROFESSIONAL CORPORATION Independent Auditors' Report FAX 223-3926 Weld County Retirement Plan Greeley, Colorado We have audited the accompanying statement of net assets available for benefits of the Weld County Retirement Plan as of December 31, 1991, and the related statement of revenue, expenses, and changes in net assets available for benefits for the year then ended. These financial statements are the responsibility of the Retirement Plan'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 net assets of the Weld County Retirement Plan as of December 31, 1991, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. The additional ten-year historical trend information on pages 9 and 10 is not a required part of the basic financial statements but is additional 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 additional information. However, we did not audit the information and express no opinion on it. &wc.. and. Care pan.j , CPR , P. C . May 28, 1992 Fort Collins, Colorado MEMBERS.AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PUBLIC AND PRIVATE COMPANIES PRACTICE SECTIONS- THE CONTINENTAL ASSOCIATION OF CPA FIRMS. INC. WELD COUNTY kETIREMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1991 ASSETS Cash with County Treasurer $ 173,144 Cash 306,250 Investments 29,026,735 Accrued Interest Receivable 348.645 Total Assets 29.854.774 LIABILITIES - Accounts payable 86,680 NET ASSETS AVAILABLE FOR BENEFITS $ 29.768.094 See Accompanying Notes to Financial Statements. -3- WELD COUNTY RET1..EMENT PLAN STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Year Ended December 31 1991 Operating Revenue: Employee contributions $ 1,032,318 Employer contributions 1,032,318 Investment income 1.315.805 Total Operating Revenue 3.380.441 Operating Expenses: Benefit payments 1,108,835 Refunds to terminated employees 290,815 Administrative 190.230 Total Operating Expenses 1,589.880 Net Increase 1,790,561 NET ASSETS AVAILABLE FOR BENEFITS. Bezinning of Year 27.977.533 NET ASSETS AVAILABLE FOR BENEFITS. End of Year $ 29.768.094 See Accompanying Notes to Financial Statements. -4- WELD COUNTY RE s IREMENT PLAN NOTES TO FINANCIAL STATEMENTS Note 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 and employees of the Health Department) are required to participate in the Plan. At January 1, 1991, 915 current and former employees participated in the Plan and the membership consisted of: January 1 1991 Retirees and beneficiaries currently receiving benefits 213 Terminated employees entitled to benefits but not yet receiving them 15 Current employees: Vested 228 Nonvested 459 Total 915 The Plan, established in 1969, provides for pension, death, and disability benefits. All participants are fully vested after five years of service, except elected officials, who are fully vested regardless of years of service. -- Employees retiring under the normal retirement rule, at age 65 with at least five years of credited service or whose age plus years of credited service equals 80 or more, are entitled to monthly benefits of 2.25% of their average monthly compensation times years of credited service. The maximum monthly benefit is 75% of fmal compensation and the minimum monthly benefit is $25 per year of credited service. The Plan permits special early retirement with full benefits to employees age 62 with eight years of credited service and regular early retirement with reduced benefits to employees age 55 with five years of credited service. Note 2 - Summary of Significant Accounting Policies: Reporting Entity: The Plan is included in the reporting entity of the County as a pension trust fund in the comprehensive annual financial report. 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. -5- Note 2 - Summary of Significant Accounting Policies - Continued: Investments: Investments are reported at cost or amortized cost subject to adjustment for market value declines judged to be other than temporary. Note 3 - Cash and Investments: The Plan's cash with County Treasurer is pooled with other cash and investments of the County. Such cash at year-end was entirely covered by federal depository insurance or by collateral held by the County's custodial banks under provisions of the Colorado Public Deposit Protection Act. All other deposits and investments of the Plan are maintained separately from County funds. 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 securi- ties are held by the counterparty's agent in the Plan's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counter- party's agent but not in the Plan's name. Investments as of December 31, 1991 were as follows: Description Category 1. Category 2 Category 3 Total Corporate bonds $ 11,979,435 $ -- $ -- $ 11,979,435 Mortgages -- 1,506 -- 1,506 Common stock 13,030,176 -- -- 13,030,176 Government obligations 3,464,865 -- -- 3,464,865 Money market -- 550.753 -- 550.753 $ 28.474.476 $ 552.259 $ -- $ 29.026.735 The market value of investments totaled $35,628,367 at December 31, 1991. -6- WELD COUNTY RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS - Continued Note 4 - 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 benefit obligation was determined as part of an actuarial valuation at January 1, 1991. Significant actuarial assumptions used include: (a) rate of return on the investment of present and future assets of 7.5% per year compounded annually, and (b) projected salary increases at various rates depending on attained age ranging from 7.5% for age 25 to 5% for age 64. No assumption is made regarding post-retirement increases as these adjustments are made only upon the availability of funds to support such increases. At January 1, 1991 there are assets in excess of the pension benefit obligation, as follows: January 1 1991 Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits $ 9,474,526 Terminated vested employees not yet receiving benefits 293,626 Current employees: Accumulated employee contributions including allocated investment income 6,696,692 Employer-fmanced vested 2,363,437 Employer-financed nonvested 6.678.629 Total pension benefit obligation 25,506,910 Net assets available for benefits (at cost, market value of$28.244.812) 27.977.533 Assets in Excess of Pension Benefit Obligation $ 2.470.623 As of January 1, 1991, the Plan experienced a net increase of$1,014,448 in the pension benefit obligation, due to changes in plan provisions as follows: (a) full vesting for employees was changed from eight to five years, (b) early retirement was also changed from age 55 with eight years of credited service to age 55 with five years of credited service, (c) the spouse of a deceased employee can choose to receive a lump sum amount equal to two times the employee's contributions plus interest, and (d) benefit calculation was changed from 2.2% to 2.25% of average monthly compensation. -7- Note 5 - Contributions Required and Contributions Made: The Plan's funding policy is to provide for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due. The required contributions are determined using the aggregate actuarial cost method. The Plan does not have an unfunded actuarial accrued liability to amortize. There were no changes in actuarial assumptions during the valuation year ended _ January 1, 1991. Significant actuarial assumptions were the same as those used to compute the standardized measure of the pension benefit obligation. All employees participating in the Plan are required by the authority of the Board of County Commissioners to contribute 6% of their annual salaries to the Plan. The County is required to contribute a matching amount to the Weld County Retirement Plan. Contributions made during 1991 for both the County and the participating employees were $1,032,318 (6% of covered payroll each). Total covered payroll for year ended December 31, 1991 was $17,142,831. Note 6 - Additional 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 9 and 10. -8- WELD COUNTY K.LTIREMENT PLAN TEN-YEAR HISTORICAL TREND INFORMATION Year Ended December 31, 1991 (Unaudited) Analysis of Funding Progress Net Assets Pension Assets In Excess Available Benefit Assets Annual of PBO as a for Benefits Obligation Percent In Excess Covered Percentage of Year at Cost (PBO) Funded of PBO Payroll Covered Payroll 1982 $ 6,747,934 $ 6,747,934 100.0 % $ — $ Not Avail. — % 1983 9,248,144 7,730,870 119.6 1,517,274 Not Avail. — 1984 11,244,338 7,424,910 151.4 3,819,428 12,116,236 31.5 1985 12,970,501 9,267,695 140.0 3,702,806 12,888,781 28.7 1986 16,858,875 10,070,430 167.4 6,788,445 13,526,009 50.2 1987 20,121,008 15,836,511 127.1 4,284,497 13,962,091 30.7 1988 20,329,032 18,163,945 111.9 2,165,087 14,490,067 14.9 1989 22,477,627 20,213,686 111.2 2,263,941 14,901,100 15.2 1990 26,072,114 22,253,521 117.2 3,818,593 15,996,924 23.9 1991 * 27,977,533 25,506,910 109.7 2,470,623 17,142,831 14.4 * As of January 1, 1991, plan benefit provisions were amended. The amendment had the effect of increasing the pension benefit obligation by $1,014,448.. 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 Plan. Trends in assets — in excess of the pension obligation and annual covered payroll are both are affected by inflation. Expressing the assets in excess of the pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the Plan's progress in accumulating sufficient assets to pay benefits when due. Generally, the larger this percentage, the stronger the Plan. -9- Revenues by Source Employee Employer Investment Year Contributions Contributions Income Total 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 1991 1,032,318 *** 1,032,318 1,315,805 3,380,441 * 4% of compensation, plus 2% of each employee's compensation in excess of $400 per month. ** 5.5% of covered payroll. *** 6.0% of covered payroll. Ail contributions made in accordance with actuarial requirements. Expenses by Type Year Benefits Refunds Administrative Total 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 1991 1,108,835 290,815 190,230 1,589,880 -10- Hello