HomeMy WebLinkAbout20182375.tiffWELD COUNTY FEDERAL MINERAL LEASE DISTRICT
April 2, 2018
Members present:
Mike Freeman, President
Bruce White, Vice President (Present by phone conference)
Members absent:
Travis DePorter
Others Present:
Elizabeth Relford, Public Works
Curtis Hall, Public Works
Barb Connolly, Controller
Donald Warden, Weld County Director of Finance and Administration (Present by phone
conference)
CALL TO ORDER:
Mike Freeman, President, called the meeting to order at 3:00 p.m.
APPROVE MINUTES OF JANUARY 8, 2018:
By motion duly made and seconded, the minutes of January 8, 2018, were approved
unanimously.
REVIEW STATUS OF WELD COUNTY FOR ROAD PROJECTS:
Curtis Hall from Pubic Works provided an update detailing the status of the HARP road
projects.
OTHER BUSINESS:
Donald Warden, Weld County Director of Finance and Administration, presented a bill
from Weld County for $600 for administrative services per the IGA with Weld County. By motion
duly made and seconded, the payment was approved.
Mr. Warden presented the payment of $50,000 to the Weld County Department of Public
Health and Environment, for approval. He stated this is the fifth year of the project for the water
testing equipment. By motion duly made and seconded, the payment of $50,000 to the Weld
County Department of Public Health and Environment was approved.
There was no other business to come before the Board.
NEXT MEETING DATE:
The next meeting date is July 9, 2018, at 3:00 p.m.
ADJOURN:
Mike Freeman, President, adjourned the meeting at 3:10 p.m.
The above and foregoing minutes were presented for approval on the 9th day of July, 2018.
Mike Freeman, President
e vrti ,11 2018-2375
7-as-.2cr8
EXHIBIT A
2018 HRP
Route
From
To
Surface
Type of Improvement
Miles
District
Cost Estimate
CR 90
CR 45.5
CR 57
Paved
FDR
6
1
$1,518,000
CR 67
CR 68
SH 392
Gravel
28' CTB, Pave
2.5
1
$609,074
CR 18
Patrick
CR 37
MC
28' CTB, Pave
2
3
$585,871
CR 380
CR 61
Pave
Gravel
Full Depth Mag
4
1
$72,000
CR 390
CR 105
SH 14
Gravel
Full Depth Mag
4
1
$72,000
CR 120
CR 133
SH 71
Gravel
I
Full Depth Mag
6
1
$108,000
CR 105
CR 390
SH14
Gravel
28' CTB, Pave (DOLA grant)
3.7
1
$2,300,000
130
120
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Miles
TOR INTERNAL USE UNIT'
SUBJECT TO CHANGE
Date 12/19/201-
FML Board update 07/09/2018
CR90/45.5-57 FDR // CTB and 1st lift of pavement complete to CR 49, CTB complete to 53 this week.
Project should be complete by August 17th. $13,067 materials to date (no asphalt included).
CR67/68-SH392 CTB Pave //Job 100% complete. Material cost $660,502.
CR18/Patrick-37 CTB Pave // Will be the last project out of the gate this year.
CR105/Sh14-390 CTB Pave // Because of Pawnee Grasslands requirements (Mountain Plover) the
project couldn't start until July 10th. We will start the project July 23`d and estimate completion
November 9th, ROW has been acquired and utilities will be moved by July 20th
CR380/61-pavement (Hardin) Full Depth Mag // Project will start after bride work is completed.
Anticipate an August application.
CR390/SH14-390 Full Depth Mag // 1st of 2 applications complete next application scheduled for
September. $39,679 project cost to date.
CR120/133-SH71 Full Depth Mag // 1St of 2 applications complete next application scheduled for
September. $64,875 project cost to date.
WELD COUNTY
FEDERAL MINERAL LEASE ACT DISTRICT
FINANCIAL STATEMENTS
AND
SUPPLEMENTARY INFORMATION
Years Ended December 31, 2017 and 2016
CONTENTS
Independent Auditor's Report 1
Management's Discussion and Analysis 3
Financial Statements
Balance Sheet (Statement of Net Position) 5
Statement of Revenues, Expenditures and Changes in
Fund Balance (Statement of
Activities) 6
Notes to Financial Statements 7
Required Supplementary Information 9
Budgetary Comparison Schedule 10
Note to Required Supplementary Information 11
Independent Auditor's Report on Internal Control Over
Financial Reporting on Compliance and Other Matters 12
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
ANdERSON
oWNimEy
Independent Auditors' Report
Board of Directors
Weld County Federal Mineral Lease Act District
Report on the Financial Statements
A Professional Corporation of
Certified Public Accountants
We have audited the accompanying financial statements of the governmental activities,
and each major fund of the Weld County Federal Mineral Lease Act District, as of and for the
years ended December 31, 2017 and 2016 and the related notes to the financial statements, which
collectively comprise the District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with the accounting principles generally accepted in the United States;
this includes the design, implementation, and maintenance of the internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audits. We conducted our audits in accordance with auditing standards generally accepted in the
United States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluation of the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
-1-
5801 West 11th Street. Suite 300 (970) 352-7990
Greeley, Colorado 80634-4813 www.awhitney.com
Board of Directors
Weld County Federal Mineral Lease Act District
Page 2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities and the major fund of
the Weld County Federal Mineral Lease Act District, as of December 31, 2017 and 2016, and the
respective changes in financial position thereof for the years then ended in conformity with
accounting principles generally accepted in the United States.
Other Matters
Accounting principles generally accepted in the United States require that management
discussion and analysis on pages 3 through 4 and the budgetary comparison schedule on page 10
be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with evidence sufficient to express an opinion or provide any assurance.
Other Reporting Required By Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
June 28, 2018 on our consideration of Weld County Federal Mineral Lease Act District's internal
control over financial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards, in considering the Weld County Federal Mineral Lease
Act District's internal control over financial reporting and compliance.
June 28, 2018
2
WELD COUNTY FEDERAL MINERAL LEASE ACT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2017
The discussion and analysis of the Weld County Federal Mineral Lease Act District's (the "District")
financial performance provides an overall review of the District's financial activities as of December
31, 2017 and for the period from January 1, 2017 to December 31, 2017. The intent of this
discussion and analysis is to look at the District's financial performance as a whole. Readers should
also review the financial statements and the notes to the financial statements to broaden their
understanding of the District's financial performance.
The Management's Discussion and Analysis (MD&A) is an element of the reporting model adopted
by the Governmental Accounting Standards Board (GASB) in the Statement No. 34, Basic Financial
Statements and Management's Discussion and Analysis for State and Local Governments, issued June
1999. Normally, certain comparative information between the current year and the prior year is
required to be presented in the MD&A.
Financial Highlights
The District was created in accordance with Colorado Revised Statute Sections 30-20-1301 through
1306 for the purpose of receiving monies distributed by the Colorado State Department of Local
Affairs from the Local Government Mineral Impact Fund to mitigate the social and economic impacts
of the areas of unincorporated Weld County (County) impacted by the development, processing, or
energy conversion of fuels and minerals leased under the Federal Mineral Leasing Act. The District
was created August 17, 2011, nunc pro tunc, June 29, 2011. The District's assets exceeded its
liabilities at the close of 2017 by $1,070,888 (fund balance). As of December 31, 2017, except as
expended for administrative expenses as permitted by Colorado Revised Statutes, the fund balance
of the District is restricted for use on areas within the unincorporated areas of the County that are
impacted by the development, processing, or energy conversion of fuels and minerals leased under
the Federal "Mineral Lands Leasing Act" of February 25, 1920, as amended.
The District had total revenues of $1,074,488 in 2017. The total operating revenues were
$1,055,527 and investment earnings were $18,961 for the seventh year of operation. The total
expenses were $1,053,600.
Using the Basic Financial Statements
The Basic Financial Statements consist of Management's Discussion and Analysis (this section) and
financial statements and notes to those statements. These statements are organized so that the
reader can understand the District as an entire operating entity.
Page 3
Since the District has no differences between the modified -accrual and full -accrual basis of
accounting, the presentation of the District -wide financial statements is essentially the same as the
presentation of funds. Therefore, only one set of financial statements is presented.
The Balance Sheet presents information on the District's assets and liabilities, with the difference
between the two reported as fund balance. Over time, increases or decreases in fund balance may
serve as a useful indicator of whether the financial position of the District is improving or
deteriorating.
The Statement of Revenues, Expenditures, and Changes in Fund Balance presents information
showing how the District's fund balance changed during 2017. This statement tells how general
District services were financed in the short term as well as what remains for future spending.
The District has only one fund, which is a governmental fund. The financial statements also include
notes that explain some of the information in the financial statements.
Financial Analysis of the District as a Whole
Reporting the District's Fund
Fund financial reports provide detailed information about the District's single fund. Federal
mineral lease revenues for 2017 were $1,055,527. Net non -operating revenues for 2017 were
$18,961 from investment earnings.
Budget and Actual Comparisons
For 2017, actual Federal mineral lease revenue was more than budgeted revenues by $14,488.
Actual expenditures were less than budgeted expenditures by 100.
The Future of the District
The District has adopted policies for the distribution of grants to mitigate the social and economic
impacts of the areas of unincorporated County impacted by the development, processing, or energy
conversion of fuels and minerals leased under the Federal Mineral Leasing Act. In 2013, the District
planned on granting funds to mitigate traffic impacts from oil and gas drilling activities on County
roads and funding a water quality testing program for landowners with oil and gas wells near their
water wells in the County.
Request for Information
The financial report is designed to provide information for regulatory reporting to state agencies
and those with an interest in the District's finances. Questions concerning this or any additional
information should be addressed to Don Warden, District Secretary, PO Box 758, Greeley, Colorado
80632.
Page 4
WELD COUNTY
FEDERAL MINERAL LEASE ACT DISTRICT
BALANCE SHEET (Statement of Net Position)
Assets
Deposits with County Treasurer (Note 2)
Total Assets
Liabilities
Accounts Payable
Fund Balance, restricted (Note 1)
Total Liabilities and Fund Balance
See Notes to Financial Statements.
2017
$ 2.247.512
2,247,512
$ 1,050,000
1,197.512
$ 2,247,512
2016
$ 1.176.625
1,176,625
$ 0
1.176,625
$ 1,176,625
Page 5
WELD COUNTY
FEDERAL MINERAL LEASE ACT DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE (Statement of Activities)
Revenues
Intergovernmental revenue - federal mineral lease revenue
Investment income
Total Revenue
Expenditures
Current:
General Government
Total Expenditures
Excess of Revenues over Expenditures
See Notes to Financial Statements
2017
2016
$ 1,055,527 $ 1,395,795
18,961 12.389
1,074,488 1,408,184
1,053,600 1,478,700
1,053,600 1.478,700
$ 20.888 $ (70,516)
Page 6
WELD COUNTY
FEDERAL MINERAL LEASE ACT DISTRICT
NOTES TO FINANCIAL STATEMENTS
Note 1: Nature of Business and Summary of Significant Accounting Policies
Basis of presentation: The accompanying financial statements of the Weld County Federal Mineral
Lease Act District (the "District") have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) applicable to governmental entities.
Since the District has no differences in accounting between modified -accrual and full -accrual, the
presentation of the District -wide financial statements is essentially the same as the presentation of
funds. Therefore, only one set of financial statements is presented.
Financial reporting entity: In the 2011 Colorado Legislative Session, House Bill 11-1218 was passed
which allowed counties to create a "Federal Mineral Lease Act District" to receive direct distribution
Federal mineral lease payments from the Colorado Department of Local Affairs. The District was
established for the purpose of transferring these payments to the District to streamline the
mitigation of impacts according to the guidance in the Mineral Lands Leasing Act 30 U.S.C. 191 and
provisions of Colorado Revised Statutes.
The District is administered by Weld County, Colorado (the "County"), which provides meeting
space, maintenance of financial records, treasury services, payroll services, and other
administrative services as may be requested by the District Board of Directors and agreed upon by
the County for a small monthly fee.
Basis of accounting: The District uses the modified accrual basis of accounting. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual; that is when they
become both measurable and available. "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or soon enough thereafter
to be used to pay liabilities of the current period. Expenditures are recorded when the related fund
liability is incurred.
Use of estimates: The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
Page 7
Deposits with State Treasurer: The District's cash is pooled with the County's cash in an account
managed by the Weld County Treasurer. The account is reported at the fair market value of the cash
and securities underlying the investment pool.
Fund equity: The Governmental Accounting Standards Board (GASB) has issued Statement No. 54,
Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). As prescribed by GASB
54, governmental funds report fund balance in classifications based primarily on the extent to which
the District is bound to honor constraints on specific purposes for which amounts in the funds can
be spent.
Restricted fund balance includes amounts that can be spent only for specific purposes stipulated by
constitution, external resource providers, or through enabling legislation. Restrictions may
effectively be changed or lifted only with consent of the resource providers.
As of December 31, 2016, except as expended for administrative expenses as permitted by Colorado
Revised Statutes, the fund balance of the District is restricted for use on areas within the
unincorporated areas of the County that are impacted by the development, processing, or energy
conversion of fuels and minerals leased under the Federal Mineral Lands Leasing Act of February
25, 1920, as amended.
Note 2: Contingencies and Commitments:
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction
of assets; errors and omissions; injuries; and natural disasters. The District does not have specific
insurance coverage beyond the insurance policies and risk management of Weld County.
In 1992, Colorado voters approved the Taxpayer's Bill of Rights (TABOR). The District believes that
it is exempt from TABOR since it does not have the authority to levy taxes
Note 3: Deposits
Deposits for the District are invested in the pooled cash and investments account managed by the
Weld County Treasurer. State Statutes authorize the Treasurer to invest in obligations of the United
States and certain U.S. agency securities, certain international agency securities, general obligation
and revenue bonds of U.S. local government entities, banker's acceptance of certain banks,
commercial paper, written repurchase agreements collateralized by certain authorized securities,
certain money market funds, and guaranteed investment contracts. The County has no provisions
in its investment policy that would further limit investment choices. Detailed information on the
County Treasurer's pooled cash and investments is available from the County Treasurer.
Page 8
REQUIRED SUPPLEMENTARY INFORMATION
The District's required supplementary information includes the budgetary
comparison schedule as described in the accompanying Note to Required
Supplementary Information following the schedule.
WELD COUNTY
Page 9
FEDERAL MINERAL LEASE ACT DISTRICT
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
2017
Revenues
Intergovernmental Revenue
Federal Mineral Lease Revenue
Investment income
Total Revenue
Expenditures
General government
Net Change in Fund Balance
Budgeted Amounts
Original Final
$ 1,050,000
10.000
$ 1,060.000
$ 1,053,700
$ 6,300
2016
$ 1,050,000
10.000
$ 1,060,000
$ 1,053,700
$ 6,300
Budgeted Amounts
Original Final
Actual
$ 1,055,527
18.961
$ 1,074,488
$ 1.053.600
$ 20,888
Actual
Variance with
Final Budget
Positive
(Negative)
$ 5,527
$ 14,488
$ 100
$ 169,588
8.961
Variance with
Final Budget
Positive
(Negative)
Revenues
Intergovernmental Revenue
Federal Mineral Lease Revenue $ 1,000,000 $ 1,000,000 $ 1,395,795 $ 395,795
Investment income 10.000 10.000 12.389 2.389
Total Revenue $ 1,010,000 $ 1,010,000 $ 1,408,184 $ 398,184
Expenditures
General government
$ 1.478.700 $ 1,478.700 $ 1,478.700 $
0
Net Change in Fund Balance $ (468,700) $ (468,700) $ (70,516) $ 398,184)
See Note to Required Supplementary Information
WELD COUNTY
FEDERAL MINERAL LEASE ACT DISTRICT
Page 10
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
Budget
The budgetary comparison schedule presents a comparison of the legally adopted budget with
actual data. The District prepares its budget on a cash basis, and the revenues and expenditures
presented in the aforementioned schedule are on the modified accrual basis. Any differences in
revenues and expenditures as a result of the difference in accounting basis are considered
immaterial. Appropriations lapse at fiscal year end. All budget amendments are approved by the
Board of Directors and are presented within the final budget figures. Expenditures exceeded
appropriations during the year.
Colorado State Statutes require the preparation of an annual budget which provides documentation
that all sources and uses of District resources are properly planned, budgeted, and approved. The
budget, upon adoption, is the legal document which places restrictions and limitation on the
purposes and amounts for which District monies may be expended.
Financial Reporting on Compliance and Other Matters - Page 1
Page 11
ANdERSON
�WIiITNEy
■t■t■
A Professional Corporation of
Certified Public Accountants
Independent Auditors' Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters, Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Board of Directors
Weld County Federal Mineral Lease Act District
We have audited in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of
Weld County Federal Mineral Lease Act District and the related notes to the financial statements
as of and for the years ended December 31, 2017 and 2016, and have issued our report thereon
dated June 28, 2018.
Internal Control Over Financial Reporting
In planning and performing our audits, we considered the District's internal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing
our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the District's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the District's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies in internal control, that results in a reasonable possibility that a
material misstatement of the District's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all deficiencies
in internal control that might be significant deficiencies or material weaknesses. Given these
limitations, during our audit we did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses. However, material weaknesses may exist
that have not been identified.
-12-
5801 West 1lth Street. Suite 300 (970) 352-7990
Greeley, Colorado 80634-4813 www.awhitney.com
Board of Directors
Weld County Federal Mineral Lease Act District
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Weld County Federal Mineral
Lease Act District's financial statements are free of material misstatement, we performed tests of
its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance
with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control
and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
June 28, 2018
- 13 -
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