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HomeMy WebLinkAbout911228.tiff GREELEY-WELD COUNTY AIRPORT AUTHORITY Greeley, Colorado Annual Financial Report December 31 , 1990 911228 AP0003 GREELEY-WELD COUNTY AIRPORT AUTHORITY Annual Financial Report For The Year Ended December 31 , 1990 GREELEY-WELD COUNTY AIRPORT AUTHORITY Table of Contents Page INDEPENDENT AUDITOR'S OPINION ON GENERAL PURPOSE FINANCIAL STATEMENTS 1 GENERAL PURPOSE FINANCIAL STATEMENTS - ALL PROPRIETARY FUND TYPES - ENTERPRISE Combined balance sheet 2 Combined statement of revenues, expenses and changes in retained earnings 3 Combined statement of cash flows 4 Footnotes to financial statements 5-10 INDEPENDENT AUDITOR'S OPINION ON INDIVIDUAL FUND FINANCIAL STATEMENTS, SCHEDULES AND STATISTICAL DATA 11 INDIVIDUAL FUND FINANCIAL STATEMENTS, SCHEDULES AND STATISTICAL DATA ENTERPRISE FUNDS AIRPORT FUND Balance sheet 12 Schedule of financial resources provided, applied and changes in working capital - budget and actual 13 Schedule of financial resources provided - budget and actual 14 Schedule of current operating expenses - budget and actual 15 TERMINAL FUND Schedule of financial resources provided, applied and changes in working capital - budget and actual 16 Schedule of current operating expenses - budget and actual 17 STATISTICAL DATA 18 SINGLE AUDIT REPORTS AND SCHEDULES Independent auditor's report on schedule of federal financial assistance 19 Schedule of federal financial assistance 20 Notes to schedule of federal financial assistance 21 INDEPENDENT AUDITOR'S REPORT ON INTERNAL ACCOUNTING CONTROL General purpose financial statements 22 Federal financial assistance programs 23 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE General purpose financial statements 24 Federal financial assistance programs 25 COLE AND CROSIER, P.C. INDEPENDENT AUDITOR'S REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS CERTIFIED PUBLIC ._ ACCOUNTANTS �_ '4a� Board of Commissioners Greeley-Weld County Airport Authority Greeley, Colorado ^ac_ We have audited the accompanying general purpose financial statements of the Greeley-Weld County Airport Authority as of and for the year ended December 31 , 1990, as listed in the table of _ contents. These financial statements are the responsibility of the Airport'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, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Greeley-Weld County Airport Authority as of December 31 , 1990, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. Cole and Crosier, P.C. Certified Public Accountants MEMBER OF LaSalle, Colorado AMERICAN INSTITUTE OF June 5, 1991 CERTIFIED PUBLIC ACCOUNTANTS 3032845545 111 MAIN STREET PO BOX 718 LA SALLE,COLORADO 80645 '-1- , 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 Proprietary Fund Types - Enterprise Combined Balance Sheet December 31 , 1990 (Memo Only) 1989 ASSETS Cash (Note 12) $ 89,955 $ 121 ,849 Receivables Accounts 69,633 72,325 Farm commodities 4,410 - Due from local governments - 500 Accrued interest 303 389 Fuel tax refunds 5,086 5,854 Due from airport fund - 72,553 Note (Note 4) 33,977 43,580 FAA grant (Note 2) 391 ,010 9,936 Inventories (Note 3) 29,223 25,165 Prepaid expenses 10,844 11 ,416 Fixed assets - net of accumulated depreciation (Note 11) 5,698,475 5,415,085 Master plan (Note 5) 33,120 33,120 TOTAL ASSETS $6,366,036 $5,811 ,772 LIABILITIES Accounts payable $ 412,683 $ 89,652 — Retainage payable 41 ,701 - Due to terminal fund - 72,553 Accrued interest payable 5,356 2,023 - Compensated absences payable 2,714 4,254 Deposits 10,240 9,360 Payroll and other taxes payable 1 ,414 - Accrued wages 4,444 5,357 Notes payable (Note 6) 489,996 525,930 Bond payable (Note 6) 31 ,220 41 ,082 Deferred revenue Grant and local government contributions (Note 2) 12,401 11 ,040 Gain from sale and leaseback (Note 7) 21 ,225 23,217 Leases (Note 14) 18,683 19, 114 Total liabilities 1 ,052,077 803,582 FUND EQUITY Contributed capital (Notes 9 and 14) 5, 191 ,966 4,893,367 Retained earnings - unreserved 121 ,993 114,823 Total fund equity 5,313,959 5,008, 190 TOTAL LIABILITIES AND FUND EQUITY $6,366,036 $5,811 ,772 The accompanying footnotes are an integral part of this report. - -2- GktELEY-WELD COUNTY AIRPORT AUTMORaiY All Proprietary Fund Types - Enterprise Combined Statement of Revenues, Expenses and Changes in Retained Earnings For the Year Ended December 31 , 1990 (Memo Only) 1989 OPERATING REVENUES Net sales $ 525,381 $ 476,973 Cost of sales 349, 139 289,928 Gross margin 176,242 187,045 Leases and rentals (Note 8) 207,464 220,776 Charges for services 15, 121 24,848 Operators licenses 2,900 3,900 Farm revenue 79,466 97,907 Other operating revenues 23,589 27,820 Total operating revenues 504,782 562,296 OPERATING EXPENSES Personnel services 159,722 149,047 Contractual services 83,492 87,308 Supplies 21 ,727 18,314 Repairs and maintenance 28,448 59,369 Utilities 33,639 28,556 Other operating expenses 79,871 65,993 Total operating expenses 406,899 408,587 OPERATING INCOME BEFORE DEPRECIATION 97,883 153,709 Depreciation 212,696 205,544 OPERATING LOSS (114,813) (51 ,835) NONOPERATING REVENUES (EXPENSES) Gain on sale and leaseback of hangars (Note 7) 1,992 1 ,992 Interest expense (42,834) (52,011 ) Earnings on investments 5,988 7,556 Oil and gas lease revenue 6,286 4,930 _ Local government operating subsidies - 37, 123 Loss on disposal of assets - (6,096) Total nonoperating revenues (expenses) (28,568) (6,506) NET LOSS (143,381 ) (58,341 ) Depreciation on fixed assets acquired by grants, entitlements, and shared revenues externally restricted for capital acquisitions and construction that reduces contributed capital (Note 9) 150,551 141 , 129 INCREASE IN RETAINED EARNINGS 7, 170 82,788 RETAINED EARNINGS Beginning of year (Note 14) 114,823 32,035 Residual equity transfers in (Note 13) 190,070 Residual equity transfers out (Note 13) (190,070) - End of Year $ 121 ,993 $ 114,823 The accompanying footnotes are an integral part of this report. -3- GREELEY-WELD COUNTY AIRPORT AUTHORITY All Proprietary Fund Types - Enterprise _ Combined Statement of Cash Flows For the Year Ended December 31 , 1990 (Memo - Only) 1989 CASH FLOWS FROM OPERATING ACTIVITIES $ (114,813) $ (51 ,635) Operating loss Adjustments to reconcile operating loss to net cash from operating activities 2,696 205,544 Depreciation and amortization 213, 193 5,345 Interest on operating loans (450) (7,964) - Increase in accounts receivable (4,058) (7,096) Increase in inventories Decrease in prepaid expenses (66,775) (4 572 2,31,811 1 Decrease in accounts payable 382 Increase (decrease) in accrued expenses (1 ,039) Increase (decrease) in deferred lease revenue 143(708 192,489) 1 ,780 Total adjustments — Net cash from operating activities 28,895 140,654 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES 880 332 Net increase in deposits (45) (2,345) Interest paid on operating loans Net principal received (paid) 21 ,700 (76,090) on operating loans _ 37, 123 Local government appropriations received g 286 4,930 Oil and gas royalties Net cash from (used in) noncapital 28,851 (36,050) financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES 58,666 Proceeds from issuance of long-term debt 67,496) (50,009) Principal payments on long-term debt (44,437 37,721 Grants received from the FAA Appropriations received from local governments 25,000 12, 116 42,649) (51 ,983) Interest paid on long-term debt (64,579) (45,211 ) Acquisitions of property and equipment (64,579) (52,080) Master plan update Net cash used in capital and (105 287) (60,780) related financing activities CASH FLOWS FROM INVESTING ACTIVITIES 603 7,946 Payments on note receivable g6,074 7, 167 Interest on investments and note receivable 15,677 15, 113 Net cash from investing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (31 ,894) 58,937 CASH AND CASH EQUIVALENTS 151 ,849 62,912 Beginning of year End of year $ 89,955 $ 121 .849 The accompanying footnotes are an integral part of this report. -4- GREELEY-WELD COUNTY AIRPORT AUTHORITY Footnotes to Financial Statements December 31 . 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNT POLICIES The Authority follows generally accepted accounting principles applicable to governmental entities as defined by the Governmental Accounting Standard 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. 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 oversight responsibility for any other agency which would require it to be in the reporting entity. Oversight responsibility is determined based on consideration of financial interdependency, selection of governing authority, designation of management, ability to significantly influence management and accountability for fiscal affairs. Fund accounting The accounts of the Authority are organized on the basis of funds, each of which is considered a separate accounting entity. 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 Authority currently accounts for all operations in Enterprise Funds, which are Proprietary Fund types, described as follows: PROPRIETARY FUNDS 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, other purposes. The Authority has maintained two such funds - the Airport and Terminal Funds. • -5- NOTE 1 - continued Basis of Accounting Enterprise 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 governmental appropriations to the Airport which are restricted for the acquisition or construction of capital assets are recorded as contributed capital . 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. 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 $500. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, as follows: — Description Life Buildings 3-30 years _ Vehicles, equipment and furniture 3-20 years Farm buildings and improvements 10-30 years Property under capital lease 19 years An amount equal to depreciation of property and equipment acquired with grants and restricted local governmental appropriations (contributed assets) is transferred from contributed capital to retained earnings. Compensated absences All vested or accumulated vacation leave is reported as a current expense. _ Liability for accumulated vacation leave is recorded at the end of the fiscal year. Budget information and control The annual budget of the Authority is prepared on the basis of the flow of financial resources or working capital . The Authority is subject to the Colorado Local Government Budget Law beginning with the 1990 budget year. Budgetary controls are established annually by law over all funds. Appropriations for each fund lapse at the end of the budget year. The Authority must appropriate monies not greater than the budgeted total expenditures of each fund, 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 the act of God, — a public enemy or some contingency which could not have been reasonably foreseen at the time of adoption of the budget. -6- NOTE 1 - continued A supplementary appropriation was adopted for 1990, increasing appropriations for the Terminal Fund from $128,950 to $202 ,765 to authorize a residual equity transfer to the Airport Fund. 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. NOTE 2 - FEDERAL AVIATION ADMINISTRATION GRANTS In 1988 the Federal Aviation Administration awarded the Airport a $39,744 grant to pay 90% of the allowable costs to update the Airport's Master Plan. The 10% matching requirement was met by contributions from the City of Greeley and Weld County. At December 31 , 1990, $29,808 of the grant had been expended and the remainder is classified as deferred revenue. Another FAA award was made to the Authority for pavement rehabilitation in the amount of $461 ,835, with the FAA paying 90% of allowable costs. The Authority will match its 10% share through contributions from the City of Greeley and Weld County. At December 31 , 1990, $425,510 has been expended with $381 ,074 recorded as a receivable for reimbursement from the FAA. NOTE 3 - INVENTORIES A summary of inventory components follows: Aviation gas $ 17,881 Jet fuel 7,846 Auto fuel 214 Oil 701 Pilot supplies 2,551 Vending supplies 30 Total $ 29,223 NOTE 4 - NOTE RECEIVABLE A promissory note was received on November 1 , 1987 in the amount of $66,079 for the sale of a hangar. Beginning December 1 , 1987 monthly payments of $1 , 151 are due, with payments first credited to interest at an annual rate of 10.86%. The maturity date of the note is October 1 , 1993. Prepayments may be made without premium at any time prior to maturity. The balance of the note at December 31 , 1990 is $33,977. -7- NOTE 5 - MASTER PLAN A plan for future airport expansion prepared in 1977 was modified and officially adopted in 1980. The plan was again modified in 1984 and $5,869 of costs were - capitalized. The plan was updated in 1988 and an additional $33, 120 was capitalized as of December 31 , 1990. The 1988 plan has not been officially adopted as of December 31 , 1990 and therefore no amortization of the costs have been recorded. NOTE 6 - BOND AND NOTES PAYABLE A single 7 1/2% facilities acquisition bond was issued on October 28, 1983 in the amount of $88,500 for the purchase of a hangar. Beginning November 1 , 1983 monthly payments of $1 ,051 are due, with payments first credited to interest. The maturity date of the bond is October 1 , 1993. Prepayments may be made without premium at any time prior to maturity. The balance of the bond at December 31 , 1990 is $31 ,220. At December 31 , 1990 notes payable consisted of the following: Monthly - Payments Interest Issue Date of Original Balance Required _ Collateral Rate Date Maturity Amount 12/31/90 $ 3,600 T-Hangars 8.00% 10/13/87 10/15/92 $363,238 $312,564 $ 1 ,208 Hangar #44 7.50% 5/21/79 10/15/99 $150,000 97,890 $ 1 ,650 T-Hangars 7.50% 3/07/89 3/15/94 $ 80,693 56,842 $ - None 8. 75% 8/15/90 4/02/91 $15,OOOLOC 12,700 $ - Farm Products 8.75% 4/02/90 4/02/91 $65,OOOLOC 10,000 $489,996 Annual maturities of debt for each of the next five years are as follows: Year ending December 31 : 1991 $ 75,690 1992 330,451 1993 36,417 1994 14,021 1995 9,987 Later years 54,650 — Total $ 521 ,216 NOTE 7 - 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 1990 was $1 ,992. -8- NOTE 8 - OPERATING LEASES The Airport has nine hangars and three T-sheds in which space is leased to users of the Airport. Cost of the hangars and T-sheds, built between 1948 and 1981 , was $887,828 with accumulated depreciation at December 31 , 1990 of $438,527. There are 100 hangar units and 14 T-shed rental units. In 1990 monthly rental rates ranged from $82 to $335 for each hangar unit and $44 to $110 for each T-shed unit. Lease terms range from month to month up to one year but are generally cancelable at any time at the lessee's option. NOTE 9 - CHANGES IN CONTRIBUTED CAPITAL Changes in contributed capital for the Airport Fund fiscal year ended December 31 , 1990, are summarized by source as follows: Contributed capital , January 1 , 1990 $4,893,367 Add current contributions: 425,510 Federal Aviation Administration 23,640 County of Weld, Colorado Total current contributions 449, 150 Less depreciation on grants and local government appropriations (150,551 ) Contributed capital , December 31 , 1990 $5, 191 ,966 NOTE 10 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS Beginning January 1 , 1990, 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 , 1990, is as follows: FINANCIAL POSITION INFORMATION Net working capital $ 24,070 Property, plant and equipment: $ 496,086 Additions - at cost _ Deletions - at cost NOTE 11 - FIXED ASSETS A summary of enterprise fund fixed assets at December 31 , 1990 follows: Land $1 ,555,301 Land improvements 5,211 ,046 Buildings and improvements 817,814 Vehicles, equipment and furniture 194,265 Construction in progress 4,377 Total 7,782,803 Less accumulated depreciation 2,084,328 Total $5,698,475 NOTE 12 - CASH The Authority invests temporarily idle funds throughout the year. All such deposited funds are fully covered by federal depository insurance. -9- NOTE 12 - Continued • At December 31 , 1990, cash is summarized as follows: Carrying Amount and Market Description Rate Value Checking accounts N/A $ 9,635 Money market account 5.50% 35,942 Cash on hand N/A 350 Cash with county treasurer N/A 44,028 $ 89,955 NOTE 13 - RESIDUAL EQUITY TRANSFER On January 1 , 1990, the net assets of the Terminal Fund was transferred to the Airport Fund. The transfer reflects a change in how the Authority accounts for its activities. Therefore, the transfer ($190,070) , was recorded to the retained earnings of the Airport Fund and all the assets and liabilities of the Terminal Fund are now those of the Airport Fund. NOTE 14 - PRIOR PERIOD ADJUSTMENTS The retained earnings of the Airport Fund as of December 31 , 1989 has been restated for corrections of certain prior period items, as follows: Airport Fund Retained Earnings Balance as originally stated $ (55, 133) Additional outstanding operating loan (1 ,000) Recognize deferred lease revenue (19, 114) Balance as restated $ (75,247) The 1989 amounts on the accompanying financial statements have been adjusted for the effects of these corrections. -10- - COLE AND CROSIER, P.C. INDEPENDENT AUDITOR'S OPINION ON INDIVIDUAL CERTIFIED FUND FINANCIAL STATEMENTS, SCHEDULES AND STATISTICAL DATA PUBLIC ACCOUNTANTS The 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 combining and 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 the 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 , 1990. We have also previously audited, in accordance with generally accepted auditing standards, the general purpose financial statements of the Greeley-Weld County Airport Authority for the year ended December 31 , 1989 (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 1989 financial statements are fairly stated in all material respects in relation to the basic financial statements from which it has been derived. The statistical data for the years ended December 31 , 1986-1988 are presented for the purpose of additional analysis and have not been subjected to the same inquiries and analytical procedures applied in the audit of the basic financial statements, but have been compiled from information that is the representation of the management of Greeley-Weld County Airport Authority without audit or review. Accordingly, we do not express an opinion or any other form of assurance on these data. MEMBER OF. . AMERICAN ���--00II"��� VVV___"""Itfl++..-gVV...1..��� •^ INSTITUTE OF CERTIFIED Cole and Crosier, P.C. PUBLIC Certified Public Accountants ACCOUNTANTS _ LaSalle, Colorado 303-284-5545June 5, 1991 111 MAIN STREET PO BOX]18 LA SALLE,COLORADO 80645 -11- - 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 The 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 funds: AIRPORT FUND The Airport Fund accounts for assets, liabilities, revenues and expenses involved in the general operations of the airport. The fund's principal source of revenue is land and hangar leases charged to airport operations. TERMINAL FUND The Terminal Fund accounts for assets, liabilities, revenues and expenses involved in operating the airport terminal . The fund's principal source of revenue is fuel sales charged to general airport users. GREELEY-WELD COUNTY AIRPORT AUTHORITY Airport Fund Balance Sheet December 31 , 1990 (With Comparative Proforma Amounts at December 31 , 1989 Assuming Consolidation with Terminal Fund) 1990 1989 ASSETS CURRENT ASSETS Cash on hand $ 350 $ 350 Cash with County Treasurer 44,028 70,611 Cash in checking 9,635 16,288 Cash in money market account - (1990-5.50%; 1989-5.75%) 35,942 34,600 Receivables - Accounts 69,633 72,325 Farm commodities 4,410 Current portion of note receivable 10,683 9,602 Due from FAA 391 ,010 9,936 Colorado fuel tax 5,086 5,854 Due from local governments - 500 Accrued interest 303 389 Inventories 29,223 25, 165 Prepaid expenses Insurance 9,627 9,061 Other 1 ,217 2,355 Total current assets 611 , 147 257,036 PROPERTY AND EQUIPMENT Land 1 ,555,301 1 ,555,301 Land improvements 5,211 ,046 4,738,257 Buildings and improvements 817,814 817,814 Vehicles, equipment and furniture 194,265 175,345 Construction in progress 4,377 - 7,782,803 7,286,717 Less accumulated depreciation 2,084,328 1 ,871 ,632 Property and equipment - net 5,698,475 5,415,085 OTHER ASSETS Note receivable - net of portion due within one year (1990-$10,683; 1989-$9,602) 23,294 33,978 Master plan 33, 120 33, 120 Total other assets 56,414 67,098 TOTAL ASSETS $6,366,036 $5,739,219 1990 1989 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Notes payable $ 22,700 $ 5,504 Current portion of long-term debt 52,749 58,780 Current portion of deferred gain 1 ,992 1 ,992 Accounts payable 412,683 89,652 Retainage payable 41 ,701 - Keegard deposits 10,240 9,360 Accrued interest payable 5,356 2,023 Compensated absences 2,714 4,254 Accrued wages 4,444 5,357 Payroll and other taxes payable 1 ,414 - Deferred revenue Leases 18,683 19, 114 Grant and local government contributions 12,401 11 ,040 Total current liabilities 587 077 207,076 LONG-TERM LIABILITIES Notes payable - banks 467,296 520,426 Bond payable 31 ,220 41 ,082 Deferred gain on sale and leaseback of hangers 21 ,225 23,217 519,741 584,725 Less portion due within one year 54,741 60,772 Total long-term liabilities 465,000 523 953 Total liabilities 1 ,052,077 731 ,029 FUND EQUITY Contributed capital 5, 191 ,966 4,893,367 Retained earnings-unreserved 121 ,993 114,823 Total fund equity 5,313,959 5,008, 190 TOTAL LIABILITIES AND FUND EQUITY $6,366,036 $5,739,219 -12- GREELEY-WELD COUNTY AIRPORT AUTHORITY Airport Fund Schedule of Financial Resources Provided, Applied and Changes in Working Capital - Budget and Actual For the Year Ended December 31 , 1990 (With Comparative Proforma Amounts for the Year Ended _ December 31 , 1989 Assuming Consolidation With Terminal Fund) Variance Favorable 1989 Budget Actual (Unfavorable) Actual FINANCIAL RESOURCES PROVIDED $1 , 150,200 $1 , 178,574 $ 28,374 $ 703,430 FINANCIAL RESOURCES APPLIED Current operating expenses 264,890 _ 406,899 (142,009) 408,587 Capital outlay Property and equipment 869,500 496,086 373,414 47,370 Master plan update - - - 14,720 Total capital outlay 869,500 496,086 373,414 62,090 Debt service Interest expense 45,000 42,834 2, 166 52,011 Principal 62,241 62,992 (751) 51 ,523 Total debt service 107,241 105,826 1 ,415 103,534 TOTAL RESOURCES APPLIED 1 ,241 ,631 1 ,008,811 232,820 574,211 INCREASE (DECREASE) IN FINANCIAL RESOURCES $ (91 ,431) 169,763 $ 261 , 194 129,219 * WORKING CAPITAL (DEFICIT) Beginning of year (101 ,635) (28,089) End of year $ 68, 128 $ 101 , 130 * (Current assets less current portion of note receivable) minus (current liabilities less current portion of long-term liabilities). -13- GREELEY-WELD COUNTY AIRPORT AUTHORITY Airport Fund Schedule of Financial Resources Provided - Budget and Actual For the Year Ended December 31 , 1990 (With Comparative Proforma Amounts for the Year Ended December 31 , 1989 Assuming Consolidation with Terminal Fund) Variance Favorable 1989 - Budget Actual (Unfavorable) Actual _._ Sales Aviation gas - $ 253,232 $ 253,232 $ 232,679 Jet fuel - 338,253 338,253 296,448 Auto gas - 4,914 4,914 7,798 Oil - 1 , 117 1 , 117 1 ,257 Vending - 949 949 7,392 Pilot supplies - 12,211 12,211 9,607 Volume discounts - _ (85,.295) (85,295) (78,208) -- Total net sales - 525,381 525,381 476,973 Cost of sales Aviation gas - 152,695 152,695 137,326 Jet fuel - 179,883 179,883 129,469 Auto gas - 4,298 4,298 5,552 Oil - 898 898 1 ,075 - Vending - 764 764 6, 126 Pilot supplies - 10,601 10,601 10.380 Total cost of sales = 349, 139 349, 139 289,928 -- Gross margin - 176,242 176,242 187,045 Leases and rentals Land rents $ 56,000 57,789 1 ,789 54,335 T-hanger rents 152,000 144, 105 (7,895) 152,396 Tiedown - 2,865 2,865 10,490 Building - 2,705 2,705 3,555 Total leases and rentals _208,000 207,464 (536) 220,776 Charges for services Fuel flow fees 18,000 15, 121 (2,879) 24,848 Operators licenses 4,700 2,900 (1 ,800) 3,900 Other_gperating revenue Colorado fuel tax 20,000 19,624 (376) 22,466 - Finance charges 1 ,000 2, 123 1 , 123 2,316 Miscellaneous revenue 1 ,500 1 ,842 342 3,038 Total other operating revenue 22,500 23,589 1 ,089 27,820 Farm revenue Crops 77,816 89,988 Government payments 1 ,370 7,639 Rents 280 280 Total farm revenue 120,000 79,466 (40,534) 97,907 Variance Favorable 1989 Budget Actual (Unfavorable) Actual__ Other financial resources provided Grants from FAA 688,000 425,510 (262,490) 13,248 Local government appropriations 76,500 23,640 (52,860) 46,295 Earnings on investments 7,500 5,988 (1 ,512) 7,556 Oil and gas lease revenue 4,000 6,286 2,286 4,930 Proceeds of long-term debt - - - 58,666 Proceeds from sale of assets 1 ,000 - ( 1 ,000) 2,493 Principal on note receivable - 9,603 9,603 7,946 Residual equity transfer from Terminal Fund - 202,765 202,765 N/A Total other resources provided 777.000 673,792 (103,208) 141 .134 TOTAL RESOURCES PROVIDED $1 , 150,200 11 ,178,574 $ 28,,374 $ 703,430 N/A - Not applicable -14- GREELEY-WELD COUNTY AIRPORT AUTHORITY Airport Fund Schedule of Current Operating Expenses - Budget and Actual For the Year Ended December 31 , 1990 (With Comparative Proforma Amounts for the Year Ended December 31 , 1989 Assuming Consolidation with Terminal Fund) Variance Favorable 1989 Budget Actual (Unfavorable) Actual AIRPORT Personnel services Manager $ 30,048 $ 36,841 Other salaries and wages $ 70,000 43,576 $ (3,624) 36,827 FICA 5,600 6,097 (497) 5,256 Health and life insurance 3,400 6,707 (3,307) 3,496 Workmen's compensation 3,300 3, 113 187 2,743 Unemployment compensation 1 ,000 - 1 ,000 222 Retirement 4,000 - 4,000 - Contractual services Auditing 3,500 2,750 750 3,950 - Security 350 383 (33) 328 Legal 3,000 1 ,555 1 ,445 3,698 Engineering - 300 (300) 400 Other contract work 1 ,000 - 1 ,000 - Supplies Office supplies 1 ,500 1 ,401 99 1 ,424 - Other supplies 4,000 4,296 (296) 3,236 Uniforms and clothing 200 406 (206) - Repairs and maintenance Buildings 2,000 2,713 (713) 2,007 Equipment 6,000 6,550 (550) 5,930 Grounds 16,000 10,395 5,605 46, 160 _ Utilities Telephone 3,800 5,292 (1 ,492) 4, 187 - Electric 5,000 5,400 (400) 4,307 Water 800 869 (69) 853 Gas 2,000 3,336 (1 ,336) 1 ,860 Other Insurance 9,000 11 ,580 (2,580) 13,235 Equipment rent 3,000 2,041 959 2,050 Dues and subscriptions 2,440 1 ,985 455 1 ,780 Miscellaneous 3,000 646 2,354 757 Bad debts 500 8, 169 (7,669) 567 Postage 1 ,200 811 389 971 Promotion and advertising 2,000 1 ,792 208 503 Fuel for equipment 2,800 6,383 (3,583) 3,229 Meetings and travel 4,500 2,057 2,443 4,030 Total airport 164 890 170 651 (5,761) 190,847 Variance Favorable 1989 Budget Actual (Unfavorable- Actual TERMINAL Personnel services Salaries - 58,451 (58,451) 55,708 FICA - 4,534 (4,534) 4,001 Health and life insurance - 2,478 (2,478) 1 ,210 Workmen's compensation - 1 ,623 (1 ,623) 2,743 Contractual services Legal - 173 (173) 798 Auditing - 2,750 (2,750) 3,950 Tank testing - 3,800 (3,800) - -- Security - 320 (320) 348 Supplies Office supplies - 1 ,400 (1 ,400) 1 ,538 Uniforms and clothing - 1 ,063 (1 ,063) 2, 132 Consumable supplies and tools - 3,835 (3,835) 4,272 Repairs and maintenance Buildings - 1 , 177 (1 , 177) 1 ,261 Equipment - 5,994 (5,994) 3,337 Grounds - 886 (886) 30 Utilities Telephone - 4,322 (4,322) 3,591 Electric - 4,212 (4,212) 4, 111 Water - 435 (435) 367 Gas - 755 (755) 952 Other Credit card process charges - 2,071 (2,071) 1 ,562 _ Insurance - 7,600 (7,600) 6,297 Equipment rent - 17,799 (17,799) 19,237 Fuel - 1 ,266 (1 ,266) 894 Postage - 883 (883) 696 Miscellaneous - 3, 126 (3,126) 2,682 Bad debts - 4, 123 (4, 123) 248 Promotion and advertising - 1 ,727 (1 ,727) 522 Travel and transportation - 719 (719) 1 ,561 Dues and subscriptions - 569 (569) 553 Total terminal - 138,091 (138,091) 124,601 Variance Favorable 1989 Budget_ Actual (Unfavorable) Actual _ FARM Personnel services Salaries and wages 2,875 - FICA 220 -- Contractual services Chemical applications 34,991 31 ,095 Management fee - 15,455 Machine hire/contract work 36,470 26,757 Freight - 529 Supplies Seed 6,991 5,712 Other supplies 2,335 - Repairs and maintenance Equipment - 112 Grounds 733 532 Utilities Electric 4,537 4, 174 Water 3,527 3,357 Gas 954 797 Other _ Interest 3, 193 3,345 Miscellaneous 179 5 Fuel for equipment 1 ,152 1 ,269 Total farm 100,000 98,157 1 ,843 93, 139 TOTAL CURRENT OPERATING EXPENSES t 264,.890 $ 406 899 $ (142,009) 1_ 408.1587 -15- GREELEY-WELD COUNTY AIRPORT AUTHORITY Terminal Fund Schedule of Financial Resources Provided _ Applied and Changes in Working Capital - Budget and Actual For the Year Ended December 31 , 1990 Variance Favorable Budget Actual (Unfavorable) FINANCIAL RESOURCES PROVIDED Sales Aviation gas $ 232,000 $ - $ (232,000) Jet fuel 290,000 - (290,000) Auto gas 9,000 - (9,000) Oil 1 ,300 - (1 ,300) - Vending 7,000 - (7,000) Pilot supplies 8,500 - (8,500) Volume discounts (78,200) - 78,200 Total net sales 469,600 - (469,600) Cost of sales 138,000 Aviation gas 138,000 - Jet fuel 124,000 - 124,000 Auto gas 5,500 - 5,500 Oil 1 ,200 - 1 ,200 5,800 - 5,800 Vending 6,500 - 6,500 Pilot supplies 281 ,000 Total cost of sales 281 ,000 - Gross margin 188,600 - (188,600) Leases and rentals 10,200 - (10,200) Building uin 4,500 - (4,500) Buildi Total leases and rentals 14,700 - (14,700) Other financial resources provided 1 ,000 - (1 ,000) Finance charges 1 ,000 - (1 ,000) Miscellaneous 2,000 - (2,000) Total other resources provided TOTAL RESOURCES PROVIDED 205,300 - (205,300) Variance Favorable Budget Actual (Unfavorable) FINANCIAL RESOURCES APPLIED Current operating expenses 124,950 - 124,950 Debt service Interest expense 4,000 - 4,000 Residual equity transfer to Airport Fund 73,815 202,765 1128,950) TOTAL RESOURCES APPLIED 202,765 202,765 - - INCREASE IN FINANCIAL RESOURCES $ 2,535 (202,765) $ (205,300) * WORKING CAPITAL Beginning of year 202,765 End of year - * Current assets minus (current liabilities less current portion of long-term liabilities) . -16- GREELEY-WELD COUNTY AIRPORT AUTHORITY _ Terminal Fund Schedule of Current Operating Expenses - Budget and Actual For the Year Ended December 31 , 1990 Variance Favorable Budget Actual (Unfavorable) Personnel services Salaries $ 57,800 $ - $ 57,800 FICA 4,300 - 4,300 Health and life insurance 1 ,400 - 1 ,400 Workmen's compensation 1 ,000 - 1 ,000 Contractual services Legal 1 ,000 - 1 ,000 Auditing 3,000 - 3,000 Other 300 - 300 Supplies Office supplies 1 ,600 - 1 ,600 Uniforms and clothing 1 ,000 - 1 ,000 Consumable supplies and tools 3,400 - 3,400 Repairs and maintenance Equipment 5,000 - 5,000 • Utilities Telephone 3,600 - 3,600 Electric 4,000 - 4,000 Water 500 - 500 Gas 950 - 950 Other Credit card process charges 1 ,600 - 1 ,600 Insurance 5,300 - 5,300 Equipment rent 19,600 - 19,600 - Fuel 1 ,000 - 1 ,000 Postage 800 - 800 Miscellaneous 3,000 - 3,000 Bad debts 50 - 50 Promotion and advertising 2,000 - 2,000 Travel and transportation 2,200 - 2,200 Dues and subscriptions 550 - 550 TOTAL CURRENT OPERATING EXPENSES $ 124,950 $ - $ 124,950 -17- GREELEY-WELD COUNTY AIRPORT AUTUORITY Statistical Data Last Five Fiscal Years 1990 _ 1989 1988 _ Expenses_by_ type Personnel expenses $ 156,627 $ 149,047 $ 155,074 Contractual services 12 ,031 13,472 14,093 Supplies 12,401 12,602 8,285 Repairs and maintenance 27,715 58,725 29,461 Utilities 24,621 20,228 20,490 Other operating expenses 75,347 61 ,374 52,480 Farm expenses _ 98, 157 93139 _ 102x474 Total operating expenses 406,899 408,587 382,357 _ Interest expense 42,834 52,011 55,924 Depreciation and amortization 212,696 205,544 210,783 Total expenses 1_ 662,429 $ 666,142 $ 649,064 Revenues by source Sales $ 525,381 $ 476,973 $ 405,571 - Cost of sales 349, 139 (289,928) (259,943) Gross margin 176,242 187,045 145,628 Leases and rentals (3) 207,464 220,776 194,307 _ Charges for services 15, 121 24,848 17,855 Other operating revenue 23,589 27,820 7, 124 Operators licenses 2,900 3,900 - Farm revenue 79,466 97,907 116,535 Total operating revenues 504,782 562,296 481 ,449 Interest income 5,988 7,556 9,857 Oil and gas lease revenue 6,286 4,930 5,241 - Gain (loss) on disposal of assets 1 ,992 (4, 104) 2,406 Miscellaneous revenue 37,123 Total revenues $ 519,048. $_ 607,801 $ 498,953 Operating income before depreciation (3) $ 97,883 $ 153709 $ 99,092 Fund equity_ =_end of year Contributed capital $5, 191 ,966 $4,893,367 $5,012,076 Retained earnings (3) 121 ,993 114,823 49y369 Total fund equity $5,313,959 15,006, 190 15a1)61,2,1_45 Net working capital (deficit) - end of_year__(3j_ $__24_,070 $ 49,960 $ (75,685) - Total out_standing_debt -_ end_of _year $ 521_,216 $ 567,012 1 635,959 _ Total liabilities to net worth_ %)_(1 (31 19_,80% 14.60% 15.96% Total liabilities_to_total assets (%) _(21(41 16.53% 12.74% 13.76% 198.7 - 1986 $ 140, 722 $ 116,848 15, 190 12,243 10,644 12,999 27,241 23,409 21 ,803 18,678 75,659 46,883 92, 171 75,684 -- 383,430 297,744 54, 154 63, 158 206, 164 210, 175 1_643,748 $ 571 ,077 $ 384,397 $ 385, 151 (245, 156) (270,572) 139,241 114,579 -- 195,757 209,022 16,651 18,684 14,884 6,532 82,797 81 ,581 449,330 430,398 5,421 2,948 9,756 15,515 29,211 1 ,992 _ 4,133 _ - $ 498,051 $ 450,853 $ 65_,900 $ 132,654 $5, 123,430 $4,840,983 51_,877 48_,570 15,17_5,307 $4,889,553 1_20,447) $_(330, 179) $__700,619 $ 675,736 15,.65% 20. 10% 13.54% 16.74% (1) Indicates degree of dependence on creditors. (2) Reports extent to which authority is financed by debt and its financial risk. (3) 1986 - 1988 not adjusted for effects of unrecorded deferred lease revenue at end of each year. -18- COLE AND CROSIER, P.C. CERTIFIED PUBLIC INDEPENDENT AUDITOR'S REPORT ON SCHEDULE ACCOUNTANTS OF FEDERAL FINANCIAL ASSISTANCE ±L , .:�.�...."".cam a n '., ' board of Commissioners �� Greeley-Weld County Airport Authority Greeley, Colorado We have audited the general purpose financial statements of the Greeley-Weld County Airport Authority, for the year ended December 31 , 1990, and have issued our report thereon dated June 5, 1991 . These general purpose financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in the accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence _ supporting the amounts and disclosures in the general purpose 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. Our audit was made for the purpose of forming an opinion on the general - purpose financial statements of the Authority taken as a whole. The accompanying schedule of federal financial assistance is presented for purposes of additional analysis and is not a required part of the _- general purpose financial statements. The information in that schedule has been subjected to the auditing procedures appliea in the audit of the general purpose financial statements, and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. •�D. �`-�+ukl.. MEMBER OF: �.C • AMERICAN INSTITUTE OF Cole and Crosier, P.C. CERTIF±ED PUBLIC Certified Public Accountants _ ACCOUNIANTS LaSalle, Colorado --- 303-284-5545 June 5, 1991 111 MAIN STREET RO BOX 718 LA SALLE,COLORADO 80645 -19- GREELEY-WELD COUNTY AIRPORT AUTHORITY Schedule of Federal Financial Assistance For the Year Ended December 31 , 1990 Federal Federal Grantor/Pass-Through CFDA Award Revenue Grantor/Program Title _Number Amount Recognized Expenditures U.S. Department of Transportation/ Federal Aviation Administration Airport Development Aid Program (ADAP) 20. 102 Master Plan $ 44, 160 - - Airport Rehabilitation $ 461 ,835 $ 425,511 $ 425,511 Total Federal Assistance $ 425,511 $ 425,511 See accompanying notes to schedule of federal financial assistance. -20- GREELEY-WELD COUNTY AIRPORT AUTHORITY Notes to Schedule of Federal Financial Assistance For the Year Ended December 31 , 1990 - General The accompanying Schedule of Federal Financial Assistance presents the activity of all federal financial assistance programs of the Greeley-Weld County Airport - Authority's reporting entity is defined in Note 1 of the Authority's general purpose financial statements. Basis of Accounting The accompanying Schedule of Federal Financial Assistance 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 financial assistance revenues are reported in the Authority's general purpose financial statements as capital contributions as described in Note 9 to _ the Authority's general purpose financial statements and expenditures are capitalized as depreciable assets. -21- COLE AND CROSIER, P.C. INDEPENDENT AUDITOR'S REPORT ON INTERNAL ACCOUNTING CONTROL - GENERAL PURPOSE FINANCIAL STATEMENTS CERTIFIED PUBLIC Board of Commissioners - ACCOUNTANTS Greeley-Weld County Airport Authority 5i, V14 Greeley, Colorado r4 a We have audited the general purpose financial statements of the Greeley- Weld County Airport Authority as of and for the year ended December 31 , 1990, and have issued our report thereon dated June 5. 1991 . We conducted our audit in accordance with generally accepted auditing standards and 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. In planning and performing our audit of the general purpose financial statements of the Authority for the year ended December 31 , 1990, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on general purpose financial statements and not to provide assurance on the internal control structure. The management of the Authority is responsible for establishing and — maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. - MEMBER OF, For the purpose of this report, we have classified the significant AMERICAN internal control structure policies and procedures in the following INSTITUTE OF CERTIFIED categories: PUBLIC ACCOUNTANTS Accounting Controls Accounting Applications Cash Receipts -. 303-264.5545 Cash Disbursements 11T MAIN STREET Payroll PO Box-NB LA SALLE,COLORADO 80645 Solely to assist us in planning and performing our audit, we made a study and evaluation of the internal control structure of the Authority. That study and evaluation was limited to a preliminary review of the structure to obtain an understanding of the control environment and the flow of transactions through the accounting system. Because it would not be efficient for us to obtain evidential matter to evaluate the effectiveness of the Authority's policies and procedures, our study and evaluation did not extend beyond this preliminary review phase. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, our study - and evaluation disclosed no condition that we believe to be a material weakness. This report is intended for the information of management and the U.S. Department of Transportation, Federal Aviation Administration and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. r.,„„S) �. k._. Cole and Crosier, P.C. Certified Public Accountants LaSalle, Colorado June 5, 1991 -22- COLE AND CROSIER, P.C. INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL - FEDERAL FINANCIAL ASSISTANCE PROGRAMS CERTIFIED PUBLIC ACCOUNTANTS Board of Commissioners Greeley-Weld County Airport Authority Greeley, Colorado We have audited the general purpose financial statements of the Greeley- Weld County Airport Authority, as of and for the year ended December 31 , 1990, and have issued our report thereon datea June 5, 1991 . We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the united States and Office of Management and Budget (OMB) Circular A-128, "Audits of State and Local Governments" . Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit for the year ended December 31 . 1990, we considered the Authority's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Authority's general purpose financial statements and on its compliance with requirements applicable to major programs and not to provide assurance on the internal control structure. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed policies and _ procedures relevant to our audit of the general purpose financial statements in a separate report dated June 5, 1991 . The management of the Authority is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control - structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with generally accepted accounting principles, and that federal financial assistance programs are managea in compliance with applicable laws and regulations. Because of inherent limitations in any MEMBER OF: internal control structure, errors, irregularities, or instances of AMERICAN noncompliance may nevertheless occur and not be detected. Also, INSTITUTE OF CERTIFIED projection of any evaluation of the structure to future periods is PUBLIC subject to the risk that procedures may become inadequate because of ACCOUNTANTS changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 303-284-5545 111 MAIN STREET P.O.BOX 718 LA SALLE.COLORADO 60645 For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: General Requirements Davis-Bacon Act Specific Requirements Matching level of effort Reporting During the year ended December 31 , 1990, the Authority had expended 100% of its total federal financial assistance under a major federal financial assistance - program. With respect to internal control systems used in administering the major federal financial assistance program, our study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and are being followed - satisfactorily, and evaluating any weaknessess. Our study and evaluation was more limited than would be necessary to express an opinion on the internal control system used in administering the federal financial assistance programs of the Greeley-Weld County Airport Authority. Accordingly, we do not express an opinion on the internal control systems used in administering the federal financial assistance programs of the Greeley-Weld County Airport Authority. Further, we do not express an opinion on the internal control systems used in administering the major federal financial assistance programs of the Greeley-Weld County Airport Authority. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, our study and evaluation disclosed no condition that we believe to be a material weakness in relation to a federal financial assistance program of Greeley-Weld County Airport Authority. This report is intended solely for the use of the management and the U.S. Department of Transportation, Federal Aviation Administration and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. >.e_ . Cole and Crosier, P.C. Certified Public Accountants LaSalle, Colorado June 5, 1991 -23- COLE AND CROSIER, RC. INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE - GENERAL PURPOSE FINANCIAL STATEMENTS CERTIFIED Board of Commissioners PUBLIC ACCOUNTANTS Greeley-Weld County Airport Authority Greeley, Colorado 5 � We have audited the general purpose financial statements of the Greeley- . Weld County Airport Authority, as of and for the year ended December 31 , 1990, and have issued our report thereon dated June 5, 1991 . We conducted our audit in accordance with generally accepted auditing - standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards reouire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Authority is the responsibility of the Authority's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Authority's compliance with certain provisions of laws, regulations, contracts, and grants. However, our objective was not to provide an opinion on overall compliance with such provisions. The results of our tests indicated that, with respect to the items tested, the Authority complied, in all material respects, with the provisions referred to in the preceding paragraph. Witn respect to items not tested, nothing came to our attention tnat caused us to believe that the Authority has not complied, in all material respects, with those provisions. This report is intended for the information of management and the U.S. Department of Transportation, Federal Aviation Administration and should not be used for any other purpose. This restriction is not intended to _ limit the distribution of this report, which is a matter of public record. - . �,....� A_ . Cole and Crosier, P.C. MEMBER of AMERICAN Certified Public Accountants INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS LaSalle, Colorado June 5, 1991 303-2845545 111 MAIN STREET PO BOX 718 LA SALLE.COLORADO 60645 - -24- INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE - COLE AND CROSIER, P.C. FEDERAL FINANCIAL ASSISTANCE PROGRAMS Board of Commissioners Greeley-Weld County Airport Authority CERTIFIED Greeley, Colorado PUBLIC ACCOUNTANTS We have audited Greeley-Weld County Airport Authority in compliance with 5 the requirements governing matching, level of effort, or earmarking and r Ol reporting that are applicable to its major federal financial assistance , n program, which is identified in the accompanying schedule of federal financial assistance, for the year ended December 31 , 1990. The _- management of Greeley-Weld County Airport Authority is responsible for the Authority's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States and Budget (OMB) Circular A-128, "Audits of State and Local Governments" . Those standaras and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable _ . assurance about whetner material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Authority compliance with those requirements. We believe tnat our audit provides a reasonable basis for our opinion. In our opinion, Greeley-Weld County Airport Authority complied, in all material respects, with the requirements governing, matching, level of - effort, or earmarking and reporting that are applicable to its major federal financial assistance program for the year ended December 31 , 1990. In connection with our audit of the 1990 financial statements of Greeley-Weld County Airport Authority, we have applied procedures to test the Authority's compliance with the following requirements applicable to its major federal financial assistance program, which are identified in the accompanying schedule of federal financial assistance, for the year enced December 31 , 1990: Davis-Bacon Act Federal financial reports Our procedures for testing the requirements applicable to the major programs, which are listed in the preceding paragraph, were limited to the applicable procedures described in the Office of Management and MEMBER OF Budget's "Compliance Supplement for Single Audits of State and Local AMERICAN Governments" . Our procedures for testing compliance with the INSTITUTE OF CERTIFIED requirements applicable to the major program which is listed in the PUBLIC preceding paragraph was substantially less in scope than an audit, the ACCOUNTANTS objective of which is the expression of an opinion on Greeley-Weld County Airport Authority's compliance with the reauirements. Accordingly, we do not express such an opinion. 303.284-5545 111 MAIN STREET PO BOX 718 LA SALLE.COLORADO 80645 Witn respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements -- listed in the fifth paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Greeley-Weld County Airport Authority had not complied, in all material respects, with those requirements. This report is intended for the information of management and the U.S. Department of Transportation, Federal Aviation Administration and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. Cole and Crosier, P.C. Certified Public Accountants LaSalle, Colorado June 5, 1991 -25- Hello