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Home My WebLink About921236.tiff WELD LIBRARY DISTRICT FINANCIAL REPORT December 31 , 1991 * DOLLARHIDE & SCHWARTZ a4- CERTIFIED PUBLIC ACCOUNTANTS 1_1100 0 GREELEY, COLORADO 1O ( ' 921236 r \ WELD LIBRARY DISTRICT FINANCIAL REPORT December 31, 1991 �� DOLLARHIDE & SCHWARTZ CERTIFIED PUBLIC ACCOUNTANTS CONTENTS Page INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS 1 FINANCIAL STATEMENTS Combined balance sheet--Governmental Fund Type and Account Groups 2 Statement of revenues, expenditures and changes in fund balance--General Fund 3 Statement of revenues, expenditures, and changes in fund balance--actual and budget--General Fund 4 Notes to financial statements 5-10 DOLLARHIDE & SCHWARTZ CERTIFIED PUBLIC ACCOUNTANTS 4$ DOLLARHIDE & SCHWARTZ CERTIFIED PUBLIC ACCOUNTANTS P.O.BOX 310 1122 9th STREET•SUITE 102 GREELEY.COLORADO 80632 (3031 352-7497 INDEPENDENT AUDITORS ' REPORT Board of Directors Weld Library District Greeley, Colorado We have audited the accompanying general purpose financial statements of the Weld Library District as of and for the year ended December 31, 1991, as listed in the table of contents. These financial statements are the responsibility of the District' 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 Weld Library District as of December 31, 1991, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. /191-1-44-48 ''71- DOLLARHIDE & SCHWARTZ Greeley, Colorado May 6, 1992 1 FINANCIAL STATEMENTS �� DOLLARHIDE & SCHWARTZ CERTIFIED PUBLIC ACCOUNTANTS WELD LIBRARY DISTRICT COMBINED BALANCE SHEET GOVERNMENTAL FUND TYPE AND ACCOUNT GROUPS December 31, 1991 Governmental Fund Type Account Groups General General General Fixed Long-Term Fund Assets Debt ASSETS Cash with County Treasurer (NOTE 2) $ 726, 696 Cash--other (NOTE 2) 150 Receivables Intergovernmental 2 , 896 Employee advances 1, 552 Property taxes, current and delinquent Net of $70, 315 allowance for uncollectible 1, 387, 188 Interest 6, 109 Prepaid expenses 374 Property and equipment (Notes 5, 8 & 9) $695, 673 Amount to be provided for retire- ment of general long-term debt (NOTE 6) $30,483 Total $2 , 124 , 965 $695, 673 $30, 483 LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 45, 150 — Accrued liabilities 26, 594 Lease obligation payable (Note 8) Deferred revenue 1, 387 , 188 Accrued compensated absences (Note 9) $18, 333 Accrued sick leave 12, 150 Total liabilities 1, 458 ,932 30, 483 FUND EQUITY Investment in general fixed assets $695, 673 Fund balance Reserved for prepaid expenses 374 Unreserved 665, 659 Total fund equity 666 , 033 695, 673 Total $2 , 124 , 965 $695, 673 $30, 483 See Notes to Financial Statements. Totals (Memorandum Only) 1991 1990 $ 726,696 $ 577,213 150 100 2, 896 12 ,297 1, 552 1, 797 1, 387, 188 1, 333 , 024 6, 109 3 ,834 374 551 695, 673 672 , 300 30, 483 74, 390 $2 , 851, 121 $2, 675, 506 $ 45, 150 $ 48, 356 26, 594 20, 563 56, 778 1, 387, 188 1, 333 , 024 18, 333 19,227 12 , 150 6, 623 1, 489 , 415 1, 484 , 571 695, 673 672 , 300 374 551 665, 659 518 , 084 1, 361, 706 1, 190, 935 $2 , 851, 121 $2 , 675, 506 Page 2 4 WELD LIBRARY DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUND TYPE Year Ended December 31, 1991 General Fund 1990 (memorandum 1991 only) REVENUES General property taxes $1, 329,481 $1, 336, 057 Specific ownership taxes 102 ,215 98, 345 Interest on delinquent taxes 5, 578 4,813 Intergovernmental revenue 12 ,933 2 ,539 Charges for services 30, 572 27,776 Library fines 24 , 666 14, 649 Earnings on investments 35, 141 37, 188 Contributions--in kind (NOTE 3) 293 , 006 160, 286 Miscellaneous 16,484 2 , 674 City of Greeley assistance (NOTE 9) 43 , 594 Total revenues 1,893 , 670 1, 684, 327 EXPENDITURES Culture and recreation Salaries and wages 553 , 366 324 , 484 Employee benefits 96, 164 62 , 285 Supplies 18, 127 12 , 182 Small equipment 2 , 321 2 , 822 Communications 17, 360 10, 144 Printing 3 , 793 1, 036 Books and subscriptions 156, 492 98 , 905 Public relations 2 , 367 1, 067 Audio visual 22 , 471 16, 205 Telephones 12 , 126 10, 685 Professional services 27, 154 41, 507 Buildings and grounds (NOTE 3) 118, 163 69, 392 Travel and meetings 8, 442 10, 136 Maintenance of equipment 24 , 388 28 , 693 Miscellaneous 290 7 , 369 Insurance 15, 273 14 , 243 Rent (NOTE 3) 280, 439 185,716 Interlibrary services-books 16, 522 19 , 264 Total culture and recreation 1, 375, 258 916, 135 Retirement of lease obligation 64, 157 60,952 Capital outlay 33 , 452 5, 188 Grants-in-aid (NOTE 4) 273 , 405 567 , 053 Total expenditures 1, 746, 272 1, 549, 328 EXCESS OF REVENUE OVER EXPENDITURES 147, 398 134 ,999 FUND BALANCE Beginning 518 , 635 383 , 636 Ending $ 666, 033 $ 518, 635 See Notes to Financial Statements Page 3 le WELD LIBRARY DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ACTUAL AND BUDGET--GENERAL FUND Year Ended December 31, 1991 Variance favorable — Actual Budget (unfavorable) REVENUES General property taxes $1, 329, 481 $1, 333 , 024 ($ 3 , 543) _ Specific ownership taxes 102 , 215 93 , 000 9,215 Interest on delinquent taxes 5, 578 5, 578 Intergovernmental revenue 12 , 933 12 , 933 Charges for services 30, 572 30, 600 ( 28) Library fines 24 , 666 15, 000 9 , 666 Earnings on investments 35, 141 7 , 000 28, 141 Miscellaneous 16, 484 3 , 600 12, 884 City of Greeley assistance 43 , 594 43 , 594 Total revenues 1, 600, 664 1,482 , 224 118, 440 EXPENDITURES Culture and recreation Salaries and wages 553 , 366 492, 297 ( 61, 069) Employee benefits 96, 164 100, 784 4 , 620 — Supplies 18, 127 19,285 1, 158 Small equipment 2 , 321 2 , 250 ( 71) Communications 17, 360 25,720 8, 360 Printing 3 , 793 14,762 10, 969 Books and subscriptions 156,492 198, 583 42 , 091 Public relations 2, 367 1,425 ( 942) Audio visual 22 , 471 26, 150 3 , 679 — Telephones 12 , 126 17, 285 5, 159 Professional services 27 , 154 27 , 755 601 Buildings and grounds 79, 523 75, 526 ( 3 , 997) _ Travel and meetings 8, 442 7, 440 ( 1, 002) Maintenance of equipment 24 , 388 34 , 792 10, 404 Miscellaneous 290 2 , 500 2, 210 Insurance 15, 273 16, 197 924 Rent (NOTE 3) 26, 073 25, 393 ( 680) Interlibrary services--books 16, 522 22 , 000 5, 478 Total culture and recreation 1, 082 , 252 1, 110, 144 27,892 Retirement of lease obligation 64 , 157 64, 157 Capital outlay 33 , 452 34 , 518 1, 066 Grants-in-aid (NOTE 4) 273 , 405 273 ,405 Total expenditures 1, 453 , 266 1, 482 , 224 28, 958 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 147, 398 $147, 398 FUND BALANCE — Beginning 518, 635 518 , 635 Ending $ 666, 033 $ 518, 635 See Notes to Financial Statements. Page 4 01 WELD LIBRARY DISTRICT NOTES TO FINANCIAL STATEMENTS Note 1. Significant Accounting Policies Reporting Entity: The Weld Library District was established on September 11, 1985, under the provisions of Article 90 of Title 24 of the Colorado Revised Statutes. The Weld County Commissioners together with the city councils of the six participating municipalities of Ault, Eaton, Evans, Fort Lupton, Greeley, and Hudson, Colorado, and School District RE-8 have acted to establish the Weld Library District. The Library District Board has total autonomy under the Colorado Revised Statutes, to levy property taxes and to oversee the operations to support the District' s library system. In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include a potential unit in the reporting entity was made by applying the criteria set forth in GAAP. The basic--but not the only- criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include but are not limited to, the selection of governing authority, the designation of management, the ability to significantly influence operations, and accountability for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity benefits the government and/or its citizens, or whether the activity is conducted within the geographic boundaries of the government and is generally available to its citizens. A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the government is able to exercise oversight responsibilities. Based upon the application of these criteria it was determined that there are no component units to be included in these financial statements. Basis of Presentation - Fund Accounting: The general fund is an independent fiscal and accounting entity with a self balancing set of accounts recording cash and other financial resources together with all related liabilities, residual equities and balances which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. In addition to the general fund, self-balancing account groups are established to account for the general fixed assets and general long-term debt. Page 5 01 Notes to Financial Statements Note 1. Significant Accounting Policies (continued) General Fund: The general fund is a governmental fund type and is accounted for on a spending or "financial flow" _ measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Its reported fund balance (net current assets) is considered a measure of "available spendable resources. " Governmental fund operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. The general fund accounts for all financial transactions of the District that are not properly accounted for in other funds. General Fixed Assets Account Group: All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. Acquisitions of general fixed assets are recorded as capital outlay expenditures within the governmental funds. No depreciation has been provided on general fixed assets. General Lonq Term Debt Account Group: This is not a fund, rather an account group that is used to account for the outstanding principal balances of general obligation bonds and other long term debts. Basis of Accounting: Basis of accounting refers to when revenue and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The governmental fund utilizes the modified accrual basis of accounting. Under this method, revenue is recognized in the year in which it becomes both measurable and available as net current assets. Revenue susceptible to accrual, that is measurable and available to finance the District' s operations, or of a material amount and not received at the normal time of receipt primarily consists of property taxes, assessed in 1991, payable in 1992 . Expenditures are generally recorded when related fund liability is incurred. Page 6 Notes To Financial Statements Note 1. Significant Accounting Policies (continued) Encumbrances: Weld Library District utilizes the encumbrance method of recording commitments related to unperformed contracts for goods and services. Under this method, outstanding encumbrances at year end are recorded as a reservation of fund balance since they do not constitute expenditures or liabilities. An appropriation is made in the subsequent year to provide authority to complete the transaction. Budget: An annual budget and appropriation ordinance is adopted by the Board in accordance with the Colorado State Budget Act. The budget is prepared on a basis consistent with generally accepted accounting principles for all governmental funds. The accounting system is employed as a budgetary management control device during the year to monitor the individual expenditures. All annual appropriations lapse at year end. On or before the fifteenth of September of each year management is required to submit to the Board a recommended budget covering the next fiscal year including the following information: (1) proposed expenditures; (2) debt service requirements; (3) an estimate of the amount of revenues from all sources other than property taxes; (4) an estimate of the fund equity balance or deficit for the end of the current fiscal year; (5) an estimate of the amount of money to be raised from property taxes and (6) other supporting information as the Board may request. Prior to October 31 of each year, the Board is required to set a tax levy and certify the same to the County Commissioners. Upon completion of a public hearing and the tax levy certification, the Board must adopt the budget and make the necessary appropriations by ordinance no later than December 15. Property Taxes: Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied no later than November 15 and payable in two installments on February 28 and June 15 or in full on April 30. The Weld County Treasurer bills and collects the property taxes for the District. The original January 1, 1991, levies for the general fund of the District are as follows: Mill Levy Amount General Fund 1. 5 $1, 387 , 188 Page 7 [�1 Notes To Financial Statements Note 1. Significant Accounting Policies (continued) Sick Leave and Vacation Pay: _ Sick leave is earned when vested and recorded as an expenditure at the time earned. In the event of retirement or termination, an employee whose date of hire is prior to January 1, 1985 is paid for 50% of accumulated sick leave hours up to the equivalent of one month. Unused vacation time is forfeited after 24 months from date earned. Total Columns on General Purpose Financial Statements: Total columns on the General Purpose Financial Statements are captioned Memorandum Total to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Note 2 . Cash The District's cash is entirely held by the County Treasurer except for the $150 petty cash, thus all monies are uninsured. Note 3 . In-Kind Contributions The District rents a building from Weld County, Colorado for $1 per year and another building from the City of Greeley for $10 per year. The City of Greeley also provides maintenance for its building at no additional cost to the District. These yearly rents have been adjusted in the financial statements to recognize the fair market value of these facilities and services. Rent and maintenance equal to the fair market value have been recorded as contributed revenue and like amounts have _ been recorded as offsetting in-kind expenditures in the amount of $160, 286 rent to Weld County, $94 , 080 rent to the City of Greeley and $38 , 640 maintenance to the City of Greeley. Note 4 . Grants in Aid Grants in aid sent to member libraries to help support their facilities are listed below: Town of Ault $ 32 , 046 Town of Eaton 46, 932 City of Fort Lupton 87 , 987 Town of Hudson 23 , 947 Town of Johnstown 30, 619 Town of Platteville 51,874 $273 , 405 Page 8 cif Notes To Financial Statements Note 4 . Grants in Aid (continued) Grants in Aid are determined by the amount of property tax collected from incorporated areas. In 1991, 1.5 mills were assessed and the Grants in Aid represent 1 mill or two-thirds of the total amount assessed. Note 5. Changes in General Fixed Assets: A summary of changes in general fixed assets follows: Balance Balance 1/1/91 Additions Deletions 12/31/91 Equipment and furniture $604, 086 $ 33 , 452 $10, 079 $627,459 Leasehold improvements 68, 214 68 , 214 $672 , 300 $ 33 , 452 $10, 079 $695 , 673 Note 6 . Changes in Long-Term Debt A summary of changes in long-term debt follows: Balance Balance 1/1/91 Additions Reductions 12/31/91 Capital Lease $ 56,778 $56,778 Sick/Vacation 17 , 612 $26, 056 13 , 185 $30 ,483 Totals $ 74 , 390 $26, 056 $69, 963 $30, 483 Note 7 . Lease Commitment Weld Library District entered into a lease agreement to rent a building in Frederick, Colorado, from Weld County, Colorado for a period of five years beginning December 1, 1987 and expiring December 31, 1992 . Weld Library District is responsible for maintenance and utilities of the premises. Rent expense for 1991 was $24, 589 . Minimum lease payments under this non-cancelable lease for 1992 total $24 , 589 . Note 8 . Lease Obligation Payable During 1988, the District entered into an agreement for the lease of a computer system in the general fund. The terms of the agreement provide for the transfer of title of the asset at the end of the lease term. The lease meets the criteria of capital leases as defined by Statement of Financial Accounting Page 9 cif Notes to Financial Statements Note 8 . Lease Obligation Payable (continued) Standards No. 13 "Accounting for Leases", which defines capital leases generally as those which transfer benefits and risks of ownership to the lessee. As such, $245, 980 has been capitalized as equipment in the General Fixed Asset group of accounts to record the computer system and hardware. The imputed interest rate is approximately 10%. Total interest expense paid in 1991 was $7, 379 . The final payment on the lease was made in 1991. Note 9 Consolidation Agreement with City of Greeley On December 28, 1990 the District entered into an intergovernmental agreement with the City of Greeley to consolidate their operations. The agreement provides for the transfer of the ownership and control of all of the Greeley Public Library to the District exclusive of the building previously housing the Greeley City Library along with all associated appurtenances and fixtures. The agreement commenced on December 29, 1990 and will continue until December 31, 2000 at which time it may renew. Rental payable by the District is $10 annually. Library materials, shelving and furniture owned by the City of Greeley prior to the agreement costing $100, 383 was transferred to the District. Accordingly, property and equipment in the General Fixed Assets account group has been increased by $100, 383 as the result of this transfer. The agreement also provided for the transfer to the District of accrued compensated absences totaling $8, 238 for employees previously employed by the Greeley Public Library who are now employees of the District. This accrual was recorded in the General Fund in 1990. A further provision of the agreement was a commitment by the City of Greeley to pay the District $43 , 494 in 1991 to facilitate the transfer of the Greeley Public Library materials into the District inventory. Page 10 �� Hello