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HomeMy WebLinkAbout20162355.tiffPREPARED BY THE DEPARTMENTS OF ACCOUNTING AND FINANCE LEADING WITH RESPONSIVE, INNOVATIVE I COST EFFECTIVE SERVICES. mitorAtan COLORADO TABLE OF CONTENTS INTRODUCTORY SECTION Table of Contents, i Letter Of Transmittal1 Government Finance Officers Association Certificate of Achievment for Excellence in Financial Reporting14 Organizational Chart 15 Principal County Officials16 FINANCIAL SECTION Independent Auditors' Report 17 Management's Discussion and Analysis 19 Basic Financial Statements Government -Wide Financial Statements: Statement of Net Position... 27 Statement of Activities, 28 Governmental Fund Financial Statements: Balance Sheet 30 Reconciliation of Total Governmental Fund Balances to the Statement of Net Position 32 Statement of Revenues, Expenditures and Changes in Fund Balance 34 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities. 36 Proprietary Fund Financial Statements: Statement of Net Position - Proprietary Funds37 Statement of Revenue, Expenses and Changes in Net Position - Proprietary Funds38 Statement of Cash Flows - Proprietary Funds 39 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position... 40 Statement of Changes in Fiduciary Net Position 41 Notes to the Financial Statements, 42 Required Supplementary Information Other Than MD&A: Required Supplementary Information Other Than MD&A: Required Supplementary Information Pension Trust73 Other Post Employment Benefits74 Modified Approach for Infrastructure Assets 75 i Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget General Fund and Major Special Revenue Funds: General Fund 77 Public Works Fund 82 Social Services Fund 84 Human Services Fund 86 Contingent Fund 88 Supplemental Information: Combining Statement of Non -major Governmental Funds: Explanation of Funds 89 Combining Balance Sheet 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balance...96 Schedules of Revenues, Expenditures and Changes in Fund Balances -Actual and Budget Capital Expenditures Fund 98 Non -major Governmental Funds: Special Revenue Funds: Conservation Trust Fund 99 Public Health Fund100 Solid Waste Fund 101 Bebee Draw Fund 102 Pioneer Community Law Enforcement Fund 103 South West Law Enforcement Fund 104 Component Units: Housing Authority 105 E-911 Authority Fund. 106 Local Highway Finance Report 108 Combining Statements of Internal Service Funds: Combining Statement of Net Position - Internal Service Funds110 Combining Statement of Revenues, Expenditures and Changes in Net Position - Internal Service Funds 112 Combining Statement of Cash Flows - Internal Service Funds 114 Combining Statement of Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities - Fiduciary Funds 116 ii Schedule of Revenues, Expenses and Changes in Net Position -Actual and Budget Enterprise Fund and Internal Service Funds: Enterprise Fund: Northern Colorado Regional Forensic Laboratory 117 Internal Service Funds: Motor Vehicle 118 Health Insurance Fund 119 Insurance Fund 120 Phone Service Fund 121 STATISTICAL SECTION Net Position by Component 124 Changes in Net Position 126 Fund Balances of Governmental Funds, 128 Changes in Fund Balances, Governmental Funds 130 Assessed and Estimated Actual Value of Property132 Property Tax Rates - Direct and Overlapping Governments 134 Principle Tax Payers 135 Property Taxes Levies and Collections 136 Direct and Overlapping Governmental Activities Debt 137 Legal Debt Margin Information 138 Private Purpose Revenue Bonds140 Demographic and Economic Statistics 141 Principal Employers 142 Full -Time Equivalent Employees by Function/Program ..144 Operating Indicators by Function/Program. 146 Capital Asset by Function/Program 148 Insurance in Force 150 SINGLE AUDIT Schedule of Expenditures of Federal Awards151 Notes to Schedule of Expenditures of Federal Awards 153 Independant Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters on an Audit of Financial Statements Performed in Accordance with Governmental Accounting Standards 155 Independant Auditor's Report on Compliance with Requirements that could have a Material Effect on each Major Program and on Internal Controlover Compliance in Accordance with OMB Circular A-133 157 Schedule of Findings and Questioned Costs 159 Summary Schedule of Prior Federal Audit Findings 165 111 iv DEPARTMENT OF FINANCE AND ADMINISTRATION PHONE (970) 356-4000, EXT.4218 FAX: (970) 352-0242 P.O. BOX 758 GREELEY, COLORADO 80632 June 29, 2015 Honorable Board of Commissioners County of Weld 915 10th Street Greeley, CO 80631 Dear Board Members: The Comprehensive Annual Financial Report of the County of Weld, State of Colorado for the fiscal year ended December 31, 2014, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the County. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the County. The assurance of the accuracy in the County financial report is a result of the County's internal controls. The controls have been developed to provide accurate information on an efficient and cost-effective basis. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities have been included. With the December 31, 2014 financial statements, Weld County has elected to continue a significant change in government financial reporting. The purpose of these changes, which were developed by the Governmental Accounting Standards Board (GASB), is to provide better and more complete information to the users of governmental financial statements. In addition to changes to the basic financial statements, the statements are now accompanied by an introduction, overview, and analysis, referred to as "Management's Discussion and Analysis" (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found in the Financial Section immediately following the independent auditor's report. The County provides the full range of county services contemplated by statute or charter. These include general government functions, public protection and safety, health, social services, human resource services, public improvements, road and bridge operations, planning and zoning, and general administrative services. 1 Honorable Board of Commissioners This report includes all activities for which the Board of County Commissioners is accountable to the citizens of Weld County, financially, or by State Statute or the Weld County Home Rule Charter. All applicable funds, departments, and offices are included in these financial statements as part of the "primary government" of Weld County. In addition, there are several legally separate entities that have significant operational or financial relationships with the County. These include the Weld County Housing Authority, Weld County Retirement Plan, Beebe Draw Law Enforcement Authority, Pioneer Community Law Enforcement Authority, Southwest Weld Law Enforcement authority, Weld County Finance Corporation, and E-911 Authority. These entities are also included in the County's financial statements. INDEPENDENT AUDIT Colorado law requires that the County's financial statements be audited by an independent certified public accountant or firm of certified public accountants licensed to practice in the State of Colorado. The county's financial statements have been audited by McGee, Hearne & Paiz, LLP a Colorado licensed Certified Public Accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for issuing an unqualified opinion that the County's financial statements for the year ended December 31, 2014, are fairly presented in conformity with GAAP. The independent auditor's report is presented in the front of the financial section of this report. The independent audit of the County's financial statements was part of a broader, federally mandated "Single Audit" in accordance with provisions of the Single Audit Act of 1984, Federal Single Audit Amendment of 1996, and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. The "Single Audit" is designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, especially as they relate to the administration of federal awards. Single audit schedules and the auditor's reports are available in the "Single Audit" section of the document. PROFILE OF WELD COUNTY Location and demographics. Weld County is located along Colorado's Front Range in the northern part of the state. Weld County covers an area of 3,999 square miles in north central Colorado. It is bordered on the north by Wyoming and Nebraska and on the south by the Denver metropolitan area. The third 2 Honorable Board of Commissioners largest county in Colorado, Weld County has an area greater than that of Rhode Island, Delaware and the District of Columbia combined. The climate is dry and generally mild with warm summers, mild winters and a growing season of approximately 138 days. The land surface is fairly level in the east, with rolling prairies and low hills near the western border. Elevations in the county range from 4,400 to 5,000 feet. The South Platte River and its tributaries, the Cache la Poudre, Big Thompson, Little Thompson, Boulder, St. Vrain, and other smaller streams, flow into Weld County from the south and west, leaving the county on the east. There are 31 incorporated towns in Weld County. The county seat and principal city, Greeley, is located in the west central part of the county and contains almost half the county's population. Generally, most of the remaining population resides within a 20 to 30 mile radius of Greeley; the northeastern part of the county is sparsely populated. Southwest Weld County is one of the fastest growing areas in the state due to its proximity to the north Denver metro area. The county's population in 2014 was approximately 270,600. COUNTY GOVERNMENT County Services. Weld County provides the full range of services contemplated by State Statute and the Weld County Home Rule Charter. Services include: • Judicial and public safety - - consisting of the Sheriff, District Attorney, operation and maintenance of the detention center, regional communications center, and building inspection. • Health, employment, and social services. • Planning and zoning. • Construction, reconstruction and maintenance of streets, highways, and bridges. • Parks and recreation. • Property valuation, tax collection and distribution, and vehicle licensing. • General administrative services. County Operating Structure. Weld County became Colorado's first Home Rule County in 1976. The County is governed by a five -member Board of County Commissioners. Three Commissioners are elected by districts of relatively equal population and two Commissioners are elected at large. They serve staggered four-year terms and function as the County's policymaking body. Each Commissioner coordinates one of five functions of the County. The County is also served by four other elected officials: assessor, clerk and recorder, district attorney, and sheriff. Weld County also has a five -member, non-partisan, elected body that is charged to review all aspects of County government and to make periodic written reports to the public. The Commissioners appoint department heads to be responsible for the various day-to- Honorable Board of Commissioners day operations. Budgeting. The County Commissioners annually adopt budgets by department for all governmental and proprietary funds. Budgets are controlled by the major object categories of Personnel, Operating Costs, and Capital Outlay. Control is maintained by the three categories at the division/department level in the General Fund and at the fund level in all other funds. Supplemental appropriations are approved by the Board of County Commissioners as needed during the year to provide for those items that were unknown or unforeseen at the time the budget was originally adopted. MAJOR INITIATIVES For the Year. In 2014, the Board identified a number of significant program changes to enhance service delivery to the citizens of Weld County. The following is a summary of significant program changes and initiatives for 2014: Completed road and bridge permanent repairs and mitigation projects resulting from the September, 2013 flooding Assessed value increased 9.33% or $598.5 million primarily from oil and gas production Continue implementation of the Strategic Investment Plan for the Future of Weld County Funded innovation and technology projects identified r Funded the oil and gas revenue fluctuation reserve in the Contingency Fund Effective January 1, 2014, now performing all county information technology functions with county staff, instead of by use of ACS contract services Implemented a countywide training program with a Trainer position in Human Resources Implemented a criminal justice planning function in the county Implemented a Restorative Justice Program in the District Attorney's Office for juvenile offenders Added a Pre -Trial Specialist to accommodate HB 13-1236 changes to jail bonding criteria Added seven positions in the North Jail to open up 54 additional inmate beds The Weld County Regional Communications Center (WCRCC) now operates under a new organizational structure with Weld County operating the WCRCC and dispatching all public safety agencies in the county, including City of Greeley Police and Fire Participated in the Title IV -E (Foster Care and Adoption Assistance Entitlement Grant) waiver project 4 Honorable Board of Commissioners Accommodated the impacts of the Affordable Care Act on Medicaid eligibility applicants Added two additional Planning positions to accommodate new development Implemented a small business development incentive program Continued to fund a Haul Route Program (HARP) to improve county roads impacted by the energy industry due to new oil and gas drilling exploration r Began construction of Phases I and II of three phases of WCR 49 improvements Funded current and past administrative costs of the Weld County Retirement Plan FACTORS AFFECTING FINANCIAL CONDITION Economic Conditions and Outlook. Economic activity will grow at a more earnest pace in 2015. Headwinds created by fiscal and monetary policy have diminished and the global economy is improving, allowing the private sector to gain momentum. Most economic uncertainty in 2015 will center on whether the Federal Reserve can achieve a smooth deceleration of its monetary expansion policies. Economic growth will accelerate in 2015, with GDP increasing 3.5 percent. The gains will come from household and business spending. However, growth will continue to be slightly offset by reduced government spending. In December 2013, Congress approved a spending plan that would fund the federal government for two years. The plan modifies the sequestration cuts by increasing spending $45 billion and $20 billion in Federal FYs 2013-14 and 2014-15, respectively, over current law levels. In addition, Congress approved a suspension of the debt limit through March 15, 2015. When the debt limit suspension ends, the debt limit will automatically increase to reflect the amount of borrowing that occurred since the last debt limit. The Federal Reserve continues to indicate that further reduction in its stimulus would be appropriate as long as the economy continues to improve. The Federal Reserve has supported the nation's recovery over the last five years with an unprecedented expansion of assets on its balance sheet. In a fully mature economic expansion, the Federal Reserve's balance sheet should be close to $1 trillion and the federal funds rate should be around 4 percent. Many analysts do not expect monetary policy to return to these levels until 2017 or 2018. This requires the economy to recover gradually and assumes that long-term interest rates rise steadily and in an orderly fashion. In addition, the Federal Reserve has held the effective federal funds rate, the rate at which banks lend money to each other overnight, close to zero. Tightening, or a reduction in the money supply, will not occur in earnest until the Federal Reserve begins selling securities in order to increase its target for the federal funds rate. The Federal Open Market Committee (FOMC) has indicated it will not move to tighten until the unemployment rate is 6.5 percent or lower. Many economic forecasts predict that tightening will begin in late 2015. There continues to be very little inflationary pressure, giving the Federal Reserve room to 5 Honorable Board of Commissioners maintain monetary policies to allow the nation's economy to strengthen further. Inflationary pressure has remained muted even as the Federal Reserve has rapidly expanded the money supply. Weak global economic conditions and excess capacity in manufacturing and the labor market have contributed to this situation. However, a significant contributor to the lack of inflationary pressure is the increasingly low rate at which money moves through the economy. Little inflation pressure is expected as long as slack remains in the labor market. As the U.S. economy improves, the Federal Reserve will tighten monetary policy, keeping inflation in check throughout 2015. Prices are projected to increase 2.0 percent in 2014 and 2.4 percent in 2015. The world economy continued to show improvement. Global conditions are expected to improve further in 2015. The Euro region's financial crisis appears to be stabilizing. The United Kingdom's economy is improving, and its unemployment rate is declining much faster than previously expected. Japan's economy has shown improvements because of recent fiscal policy, and the emerging and developing economies, which include Asia and Latin America, are expected to pick up momentum and experience a more broad -based recovery in 2015. The Organization for Economic Co-operation and Development (OECD) expects world output to grow 3.9 percent in 2015. The unemployment rate will hover around 4.0 percent in 2015 as continued improvement in the labor market will encourage people to return to the labor force. In the fall of 2014 the Weld County unemployment rate fell to 3.6%, which is the lowest in years. Economic activity will continue to gain momentum in 2015. Although growth slowed in 2013 relative to 2012, significant improvements occurred in major sectors of the economy, placing the economy on healthier footing for stronger expansion in the coming years. The labor market continued to incrementally improve, while gains in the housing market and residential construction helped drive growth. The Colorado economy continued to improve through 2013 and growth is expected to accelerate into 2014 and 2015. The labor market added jobs throughout the year, with especially strong growth in the private sector. The unemployment rate is falling while wages and salaries are rising. Inflationary pressures will be moderate as long as the unemployment rate stays elevated. Inflation in Colorado is expected to be 2.8 percent in 2014 and 2.4 percent in 2015. The Weld County economy continues to be one of the strongest in the state. The unemployment rate continues to decline, consumer spending continues to outpace the rest of the state, housing permits continue to grow at a rapid rate, and nonresidential construction has maintained strength. Oil and gas exploration, as measured by the number of rigs operating in the region, continues to thrive. Growth in the county's labor market remains steady. Weld County, booming because of the oil and gas exploration in the Niobrara shale formation, had the largest increase in employment in the United states between December 2012 and December 2013, according to the U.S. Bureau of Labor Statistics. The county's economic output grew 10.1 percent from 2012 to 2013, putting Weld County at No.2 in the nation for GDP growth. Weld County's GDP was $7.3 billion in 2008, and has grown steadily to $8.59 billion in 2013, or 17.7 percent, according to the Bureau of Economic Analysis numbers. The driver of growth has been the oil and gas development. The northern Colorado region's real estate market continues to be vibrant New residential construction permits for all properties were up 37.7 percent in the Greeley area on a year -over - 6 Honorable Board of Commissioners year basis in 2014. While prices are projected to continue to rise in 2015 growth may not be as rapid as in 2014, as increasing interest rates may dampen the market. The value of nonresidential projects continues to grow. This, along with housing growth, has also helped maintain steady growth in construction jobs for the region's labor market. In Weld County, the majority of projects were for commercial and education facilities. Retail sales continue to be strong in Weld County. Consumer spending has outperformed the state. Oil and gas development in Weld County continued to thrive. Throughout 2014, rig counts across the region steadily increased, even as the overall number operating in Colorado declined. This increase was the result of relatively high oil prices and the continued success of plays in the Wattenberg field within the Denver-Julesburg Basin. In January 2014, there were 47 rigs operating in the region, accounting for 76 percent of the 62 total rigs in the state. However, since the beginning of 2015 the drilling activity has declined with the major drop in oil prices. Due to the efficiencies of the wells in the Denver-Julesburg Basin production has remained level even with the drop in oil prices. Because of the two year lag from production to assessment of oil production the drop in oil prices will not impact the county's 2016 budget, but will impact 2017 significantly. LONG-TERM FINANCIAL PLANNING There are a number of future issues and concerns that will be impacting Weld County's budget in 2015 and subsequent fiscal years. The continued impact of oil and gas development in the county touches on many aspects of Weld County currently, and in planning for the future. The energy development presents both challenges and opportunities for Weld County government. As has been the case for the last four to five years, growth and development activity directly, or indirectly, related to oil and gas exploration seems to be the main economic driver in the majority of positive economic activities in Weld County. The County has seen several compressor stations, injection wells, new pipelines, and other oil and gas support and service industries seeking permits. Given the commitments of the large oil and gas companies in Weld County, the County seems primed to see considerable long-term investment and development in the oil and gas arena. Although the future of energy development in Weld County appears bright, it is not without risks. Oil and gas production in Colorado has risks associated with the potential of more government regulations and voter initiatives trying to restrict or limit fracking in Colorado communities. These regulatory risks, if implemented, could dramatically impact future oil and gas development in Colorado. The volatility of the oil and gas assessed values continues to be a major impact to the County's budget planning the last five years. For the 2015 budget, the growth in the county's assessed value from oil and gas values will exceed 28%. Oil and gas assessed valuation will be over three -fifths of the county's total assessed valuation. Because of the volatility of production levels and price fluctuations of the oil and gas values, the county must continue to prudently manage the increased property tax base created by the energy development. In February, 2012, staff developed and the Board of Weld County Commissioners approved the Strategic Investment Plan for the Future of Weld County. The purpose of the Strategic Investment Plan for the Future of Weld County was to provide the Board of Weld County Commissioners an analysis of the optional uses of the projected property tax revenues from the new oil and gas development in Weld County. The option selected was to develop a long term strategy of investment in the county's infrastructure, technology and innovation, staff training and development, economic development for diversification of the local economy, and to establish a fluctuation reserve to 7 Honorable Board of Commissioners deal with the volatility of the peaks and valleys in energy prices and production. If the projected energy production figures materialize eventually, even with the long term investment strategy with the Weld County Home Rule Charter 5% property tax limitation and TABOR limitation lower property tax rates will result for all taxpayers in Weld County. While the growth in the County's assessed value and economic stimulus of the energy industry in Weld County is positive, the downside is the County will have to add significant resources to the Public Works budget again in 2015 to accommodate heavy hauling traffic, address safety issues, and improve roads impacted by the oil and gas industry's heavy hauling on county roads due to new exploration. A five-year Public Works Capital Improvement Plan will continue to be updated annually and will ensure a fair and reasonable determination of project priorities in accordance with the county's overall transportation needs, especially in dealing with the impact of energy development in the county. A significant long term project will be the capital improvements to the WCR 49/47 Corridor South from SH 34 to 1-76 and North from WCR 60.5 (SH 263) to SH 392 over the next five years requiring over $25 million per year to fund the road improvements. To accomplish the project, a funding level of $25 million per year for five years is required. Thus, added property tax resources will have to be included in the Public Works Fund in 2015-2019. The schedule and plan approved by the Board on March 5, 2014, is as follows: CIP 2014 2015 2016 20"1'`�:,, 2019 4 CR 49 South US 34 to CR 36 (10 miles) Design/ROW Design/ROW Construction Construction CR 36 to I-76 (10 miles) Design/ROW Design/ROW Construction Construction CR 47 North CR 60.5 - SH 392 (3.5 miles) Design/ROW Design/ROW Construction Construction Investing in technology and innovation will continue to be a priority in Weld County. In February, 2014, Weld County opened its new state -of the -art regional communication center to serve all public safety agencies in Weld County. January 1, 2014, Weld County terminated the outsourcing contract for information technology services with Xerox and now provides those services with county employees under the leadership of a new Chief Information Officer. This change is a strategic decision to improve technology services, increase customer satisfaction and provide accountability for IT related projects. The new organizational structure will allow the department to be dynamic and flexible as technology continues to be an integral part of our daily work lives. This organizational support framework will provide Weld County a model for IT support success. It blends additional resources for both technical and leadership positions and provides a strong focus on creating a team environment. The change creates a county department that will embrace project management, customer service, and still retain the technical focus that is needed for an organization to be dynamic enough to meet the day-to-day activities, but also be innovative and forward thinking. The County's goal is to provide a reliable, Honorable Board of Commissioners integrated information services environment that meets not only today's needs for communication and business efficiency, but positions the County to leverage new technology innovations and best practices for business transformation and improved service delivery in the future. Weld County continues to invest in training and staff development as part of its Strategic Investment Plan for the Future of Weld County. A full time county training coordinator position has been added to the Human Resources Department. A comprehensive training catalogue of training opportunities for Weld County employees has been developed, and the training sessions will be offered throughout the year with the goal of providing training to every county employee. A management and supervisor program has been developed and will be offered annually. In an era of rapid change, the need for knowledgeable, active, and engaged employees will be greater than ever. The county must continue to attract and sustain a highly qualified workforce that is responsive to the needs of the community now and in the future. Building a skilled and adaptable workforce requires that the county continue to recruit qualified employees and provide competitive salary and benefit packages. Sustaining such a workforce includes ongoing training, professional development, and engagement in succession planning. Employees must be encouraged to become adaptable, take initiative, and keep skills current through organization -wide initiatives and ongoing departmental efforts. The Strategic Investment Plan for the Future of Weld County calls for the county to have the long term vision to diversify the economic base and assessed value base of the county to become less dependent upon oil and gas assessed values. Investment in economic development for the diversity of the local economy will lay a solid foundation for long-term economic growth in the county and allow Weld County to be competitive in retaining and attracting quality companies and a labor force to support those companies. Innovative economic development initiatives must bring together the synergy that Weld County has, such as, no sales tax, low property tax rates, leveraging of oil and gas assessed value to nurture other economic development, use of the natural gas and wind power in the area to provide low cost electricity, and having an infrastructure that is strategically situated for the location of businesses and high technology installations of the future. Weld County has to focus on investing rather than spending in order to ensure long-term economic prosperity, not only while the energy boom is happening, but when it eventually ends. To accomplish long-term economic prosperity and maintain the county's strong fiscal health Weld County must use its financial resources to drive innovation to foster more productive, inclusive, and sustainable growth by better use of the assets and creativity of the county and our private partners, such as the Niobrara Energy Park. This could mean looking at current economic development incentives, such as personal property tax credits, and providing infrastructure to accommodate new companies in innovative and creative ways. Weld County is fortunate that it has the financial resources to initiate, direct, and implement innovative economic development ideas when the opportunities present themselves. Beginning in 2010, to cope with the volatility of the oil and gas assessed values due to variations in price and production that cause increases and decreases in the resulting property tax levels it was decided to create a fluctuation reserve (Contingency Fund) where funds are added to the reserve in years where the assessed value is greater and withdrawn from the reserve in years where the assessed value from oil and gas is down. Such a fluctuation reserve allows time to adjust to permanent changes, and guarantee a stable property tax revenue stream to fund county programs. The fund balance of the Contingency Fund is approximately $35 million. Reserves are the cornerstone of financial flexibility. Reserves provide a government 9 Honorable Board of Commissioners with options for responding to unexpected issues and buffer against shocks and other forms of risk. Managing reserves, however, can be a challenge. The main question is how much money to maintain in reserve - how much is enough, and when does it become too much? This can be a sensitive question, since money held in reserve is money taken from constituent, and it can be argued that excessive reserves should be returned to citizens in the form of lower taxes. In light of the Weld County's volatile property tax revenue base due to the high percentage of oil and gas assessed value and the fact that it cannot easily increase taxes to compensate for other changes in its financial condition, due to TABOR and the Home Rule Charter restricting tax increases without a vote of the people, it is prudent that Weld County balances the need for the reserve and a property tax rate cut. The county must analyze the factors that influence the level of reserves the county needs to hedge against uncertainty and loss. The primary risks are volatility of property tax revenue due to oil and gas assessed valuation fluctuations; and extreme events such as floods, and to a lesser extent, snowstorms. Secondary risks factors include cash flow and unexpected spikes in expenditures. The volatility of property tax revenue due to oil and gas assessed valuation fluctuations has a two year window to manage the situation due to the lag in the time of production to payment of taxes. A drop in price of oil and gas often results in a drop in production. Looking back over a 10-20 period the swing can be as much as a 40% drop in production value. Based upon this one risk the county could justify a $50-60 million reserve. Infrastructure risks from a failed bridge could approach $5 million. Extreme event risk, such as the 2013 flood, assuming FEMA assistance of 75%, could approach $10-15 million for one event. Adding all these risks up the county can justify a $65-80 million reserve among all of its funds. Counting the reserves in the General Fund, Public Works Fund, and Contingency Fund Weld County is well positioned, but must continue to monitor and add to the reserves to accommodate inflationary trends and other changing conditions. In 2015, with the increase in the assessed valuation Weld County reached its TABOR and Home Rule property tax limitation and will have to lower the mill levy by over one mill to 15.800 mills. For a number of years Weld County has given a temporary property tax credit equal to the difference of the limit of 22.038 mills and the 15.800 mills used to fund the budget. The biggest risk that the county would run in reducing the mill levy without having an eye on the future is the volatility of the price and production levels of oil and gas. Prior to the drop in oil prices in late 2014 to $40 per barrel one only has to look back to the 2008-2009 production years when the average annual price of oil went from $90.03 per barrel to $50.87 per barrel, and the average annual natural gas went from $6.94 per mcf to $3.21 mcf. Production levels can also have big swings due to the economy, governmental regulation changes, and demand caused by weather changes. The temporary tax credit has allowed Weld County to deal with the volatility of the oil and gas price and production. Even though the Board of Weld County Commissioners could legally reduce the temporary tax credit and raise the net mill levy above the 15.800 mills in a year with a significant drop in assessed value there is a political reluctance to do so, because there would be a perception by many taxpayers that their property taxes were raised. The option of simply reducing the property tax of taxpayers is tempting, but until the tax limitations are reached this option may be shortsighted and eliminate long term financial options that ensure long term financial viability for Weld County. However, in 2015, the property tax limits will dictate the reduction in the county mill levy by over one mill to 15.800. In summary, as Weld County elected officials and managers approach future budget processes there will be the continuation of the long-term strategy of investment in the county's 10 Honorable Board of Commissioners infrastructure, technology and innovation, staff training and development, and economic development to diversify the local economy which will all have a demonstrable long-term payoff. In addition, the financial reserves of the county are adequate at this time to deal with the volatility of the oil and gas assessed values and the risks faced by the county. The 2015 Budget Plan is a continuation of Weld County's historical discipline of fiscal stability. The commitment to the discipline of fiscal stability has enabled Weld County to remain solvent and responsive in an uncertain economic environment and provide the services the public needs and expects. Adherence to conservative and prudent fiscal management practices have enabled the county to maintain balanced budgets and stable reserves, implement proactive strategies to manage county programs, avoid debt entirely through cash financing of capital projects, and provide core services to residents. RELEVANT FINANCIAL POLICIES The major factors impacting the County's financial planning continue to be dominated by the oil and gas development in Weld County, state and federal budget issues, service restructuring in Weld County government, and the execution of the Strategic Investment Plan for the Future of Weld County. As discussed earlier there are plenty of reasons to feel good about the economic prospects of Weld County. In fall unemployment was at 3.8%. Unemployment was the lowest level in years and below the state as a whole for the first time in more than five years. Forbes Magazine ranked the Greeley area as No. 4 in the nation for projected job growth. The magazine projected jobs in this area would grow at 3.8 percent annually. In June, a study done by the U.S. Conference of Mayors predicted the Greeley area's economy would grow at 4.8 percent through 2020. Much of the recent growth, both in jobs and economic activity, comes from the oil and gas industry. The bulk of the job growth of 4,800 in the second quarter of this year came from oil and gas (2,500). Beside the oil and gas industry Vestas, which has plants in Windsor and Brighton, has announced they will add 800 new jobs, and the dairy industry, driven by Leprino Foods, has continued its surging growth. All are signs that the county has come through the challenging economic times with budgets that remain strong and a business climate that remained friendly. As has been the case for the last three to four years growth and development activity directly, or indirectly, related to oil and gas exploration seems to be the main economic driver in the majority of positive economic activities in Weld County. The County has seen several compressor stations, injection wells, new pipelines, and other oil and gas support and service industries seeking permits. Given the commitments of the large oil and gas companies in Weld County, the County seems primed to see considerable long-term investment and development in the oil and gas arena. The volatility of the oil and gas assessed values continues to be a major impact to the County's budget planning the last five years. For the 2015 budget, oil and gas assessed values are up 1.838 billion dollars with a 47.12 percent increase. The drop in oil prices to $40 per barrel in late 2014 and continuing into 2015 will not impact the 2016 budget, but will significantly impact the 2017 budget. As we approach the 2016 budget process the drop in assessed valuation for the 2017 budget will be taken into account in order to accommodate the drop in property tax revenues in 2017 budget. As pointed out in the 2015 Budget Plan and For the Future section while the growth in the County's assessed value and economic stimulus of the energy industry in Weld County is positive, the downside is the County will have to add significant resources to the Public Works budget again in 2015 to accommodate heavy hauling traffic, address safety 11 Honorable Board of Commissioners issues, and improve roads impacted by the oil and gas industry's heavy hauling on county roads due to new exploration. On May 20, 2014, the Board approved the design/build option for the WCR 47/49 Corridor at a total cost of $125 million. It will require a cash flow mechanism of advancing funds to the Public Works Fund in 2015-2016 from the Contingency Fund and Capital Expenditure Fund to be repaid in 2017-2018. Savings should be realized by design/build in three years reducing the $125 million estimated costs. The WCR 47 north portion will bid as an optional bid in the same package or an option to add onto the bid at the end of the construction: 2015 is shaping up to be a year of significant change for the Weld County Department of Human Services. Internally, the department is putting the final touches on the implementation of its up -front document imaging system and evaluating the level of success achieved through various departmental staff reorganizations. Externally, the department will continue to participate in the state-wide Title IV -E (Foster Care and Adoption Assistance Entitlement Grant) Waiver Project, designed to provide permanent connections for children entrusted to the department's care, expanding the scope of the project to include trauma -informed care services. Counties in Colorado will likely take on the responsibility of determining eligibility for all Medicaid applicants, including those previously served through a state-wide vendor, due to their choice to apply on-line for Medical services, only. This and other issues arising from implementation of the Affordable Care Act (ACA) will continue to drive the need toward more innovation and efficiencies within the Assistance Payments Division of the Department. The passage of HB 14- 1317 will produce noticeable changes in the delivery of Child Care services throughout the State. It strips away many of the tools counties previously had to control costs and stay within budget, leaving Waiting Lists as a last resort tool. Weld County has historically avoided the use of such Waiting Lists, because they tend to reward those residents who apply early for assistance, while leaving others who may be at greater need for those services behind, simply because of their relative delay in applying. Finding ways to abide by the requirements of this Act while, at the same time, maintaining a fair and equitable means of delivering services will be one of the department's most significant planning challenges. Finally, for the third year the Strategic Investment Plan for the Future of Weld County recommendations are incorporated into the 2015 Budget. The plan calls for developing a long- term strategy of investment in the County's infrastructure, technology and innovation, staff training and development, economic development for diversification of the local economy, and establishing a fluctuation reserve to deal with the volatility of the peaks and valleys in energy prices and production. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the County for its Comprehensive Annual Financial Report for the fiscal year ended December 31, 2013. This was the thirty-second year that the County has received this prestigious award. In order to be awarded a Certificate of Achievement, the County published an easily readable and efficiently organized Comprehensive Annual Financial Report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement 12 Honorable Board of Commissioners Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the County also received the GFOA's Award for Distinguished Budget Presentation for its 2014 annual appropriated budget for over thirty consecutive years. In order to qualify for the Distinguished Budget Presentation Award, the County's budget document was judged to be proficient in several categories including policy documentation, financial planning, and organization. Financial reports are valuable in that they provide a permanent historical record of a governmental agency's operation to the management and the general public. It is our belief that this is a comprehensive report of the 2014 financial transactions under our control and that the following statements present an accurate, informative record of the financial activities of the County of Weld and its financial condition at December 31, 2014. The preparation of this report could not be accomplished without the efficient and dedicated services of the entire staff of the Accounting/Finance Department. I should like to express my appreciation to all members of the department who assisted and contributed to its preparation. I would also like to thank the members of the Board of County Commissioners for their interest and support in planning and conducting financial operations of the County in a responsible and progressive manner. Respectfully submitted, Aiddikiiksien Donald D. Warden, Director of Finance and Administration 13 G�9 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to County of Weld Colorado For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2013 ofterStso Executive Director/CEO 14 WELD COUNTY HOME RULE GOVERNMENT County Citizens Assessor County Council , Board of County iCommAsioners Sheriff Corrections, Law Enforcement, Animal Control, Forensic Lab. Task Force, Code Enforcement Clerk and Recorder Recording, Motor Vehicle, Elections County Attorney Department of Finance and Administration Commissioner Coordinator 3 Accounting Budget Capital Projects Contract Administration Grant Administration Finance Division Human Resources Printing and Supply Risk Management Special Projects Treasurer's Office Clerk to the Board Housing Authority Department of Public Health and Environment Commissioner Coordinator Health Administration Environmental Health y Public Health Services Health Communication, Education and Planning Board of Public Health General Services Coroner Justice Services Purchasing Communications Public Safety IT Information Services GIS and Mapping Phone Services Department of Public Works Commissioner Coordinator Engineering Road and Bridge Buildings and Grounds Veterans Services Office of Emergency Management Department of Planning Services Commissioner Coordinator i Planning and Zoning Building Inspection Board of Adjustment International Building Code Planning Commission Utility Board County Extension Office Fair Board Red - Elected Positions Department of Human Services Commissioner Coordinator Human Services Social Services AAA Child Support Assistance Payments Child/Adult Protection Employment Services COUNTY OF WELD STATE OF COLORADO PRINCIPAL COUNTY OFFICIALS December 31, 2014 Board of County Commissioners Douglas Rademacher Barbara Kirkmeyer Sean Conway Mike Freeman William Garcia County Clerk and Recorder Steve Moreno County Assessor Christopher M. Woodruff County Sheriff John Cooke Director of Finance & Administration Don Warden Controller Barbara Connolly Treasurer John R. Lefebvre, Jr. 16 FINANCIAL SECTION 11/44p McGee, Hearne & Paiz, LLP Certified Public Accountants and Consultants Certified Public Accountants and Consultants 314 West 18th Street, Cheyenne, Wyoming 82001-4404 INDEPENDENT AUDITOR'S REPORT Board of County Commissioners Weld County, Colorado Greeley, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate discretely presented component units and remaining fund information of Weld County, Colorado (the "County") as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the County'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 accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of 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 opinions on these financial statements based on our audit. We did not audit the financial statements of Weld County Housing Authority (the "Authority"), whose assets totaled $2,247,375 and whose revenues totaled $2,657,283 of the aggregate discretely presented component units and remaining fund information. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Authority, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 from 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 evaluating 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 opinions. Opinions in our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate discretely presented component units and remaining fund information of the County as of December 31, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 17 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 19 through 26, the schedules of funding progress and employer contributions, the condition assessments of infrastructure, and the budgetary comparison information on pages 73 through 88 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 and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, 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 sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The accompanying supplementary information (the combining and individual nonmajor fund financial statements, nonmajor fund budgetary comparison information, Local Highway Finance Report, and schedule of expenditures of Federal awards, as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations), introductory section and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole, The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 29, 2015, on our consideration of the County'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 County's internal control over financial reporting and compliance. /714, �c_:J `� u'►' Cheyenne, Wyoming June 29, 2015 18 Management Discussion and Analysis This section of the report provides readers with a narrative overview and analysis of the financial activities of Weld County for the fiscal year ended December 31, 2014. We encourage readers to consider the information presented here in conjunction with the letter of transmittal and basic financial statements to enhance their understanding of the County's financial performance. FINANCIAL HIGHLIGHTS • Weld County's assets exceeded liabilities and deferred inflows of resources by $474.4 million at the end of 2014. Of this amount, $66.2 million may be used to meet the government's ongoing obligations to citizens and creditors. The remaining $405.2 million is invested in capital assets or restricted by law_ • The County's General Fund balance was $23.5 million as of December 31, 2014. Of this amount, $0.7 million for non - spendable assets, $7.7 million is restricted; $2.1 million committed for economic development; $1.6 million for encumbrances. The remaining $11.4 is available to meet the ongoing obligation to citizens and creditors. • The 2014 General Fund of balance of $23.5 is 19.9% of 2014 General Fund operating expenditures plus net operating transfers. The County Commissioners' goal is to keep fund balance at no less than 5%. The Board has not budgeted any expenditures from the fund balance in 2015. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County's basic financial statements. The basic financial statements contain three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. In addition to the basic statements, this report also contains other supplementary information including combining statements for non -major funds, a statistical section, and information regarding federal grant programs. Government -wide Financial Statements. The government -wide. financial statements are designed to provide readers with a broad overview of the County's finances in a manner similar to a private sector business. The statement of net position presents information on all of the County's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the remaining difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the County's financial position is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash, flows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). Both of the government -wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). Weld County's governmental activities include general government, public safety, streets and highways, health and welfare, auxiliary, culture and recreation, and economic assistance. The County has one business type activity — operation of the regional forensic laboratory. The government -wide financial statements include not only Weld County itself (known as the primary government), but also legally separate entities which have a significant operational or financial relationship with the County. These entities, known as blended component units, include local improvement districts, Finance Corporation, Weld County Retirement Plan, Pioneer Law Enforcement Authority, Southwest Weld Law Enforcement Authority and Beebe Draw Law Enforcement Authority. Discretely presented component units are Housing Authority and F-91 1 Emergency. More information on the functions of these entities can be found in Note 1 to the financial statements_ Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives_ Weld County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements_ All of the funds of Weld County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds arc used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. 19 Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental fiends with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in field balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Weld County maintains eleven individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in find balances for the General Fund, Public Works Fund, Social Services Fund, Human Services Fund, Capital Expenditures, and Contingent Fund, all of which are considered to be major funds. Data from the other five funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor funds is provided in the form of combining statements elsewhere in this report, The basic governmental fund financial statements can be found on pages 30 through 36 of this report. Proprietary funds. Weld County maintains two different types of proprietary funds. Enterprise fiends are used to report the same functions presented as business -type activities in the government -wide financial statements. Weld County has one enterprise fund, the Northern Colorado Regional Forensic Laboratory. internal service, funds are an accounting device used to accumulate and allocate costs internally among the County's various functions. Weld County uses internal service finds to account for its fleet maintenance, phone services, Weld Finance Corporation, and self insurance activities. Because these services predominantly benefit governmental rather than business -type functions, they have been mostly included within governmental activities in the government -wide financial statements. Proprietary fiords provide the same type of information as the government -wide financial statements, only in more detail. The proprietary field financial statements provide separate information for the Northern Colorado Regional Forensic Laboratory Fund, an enterprise fund of the County. The remaining proprietary funds, all of which are internal service funds, are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for each of these non - major funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 37 through 39 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not included in the government -wide financial statements because the resources of these funds are not available to support Weld County's own operations. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 40 through 41 of this report. Budgetary Comparisons. Weld County adopts an annual appropriated budget for all of its fiords. A budgetary comparison statement has been provided for all major funds on pages 77 to 88 of this report. Budget to actual comparisons for each of the non -major funds are provided in other schedules elsewhere in this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fiord financial statements. The notes to the financial statements can be found on pages 43 through 72 of this report. Other information. The combining statements referred to earlier in connection with non-majorgovernmental funds and internal service fiords are presented following the notes to the financial statements and can be found on pages 94 through 104 and 110 through 121 respectively. 20 COUNTY -WIDE FINANCIAL ANALYSIS Net Position. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of December 31, 2014, assets and deferred outflows exceeded liabilities and deferred inflows by $474.4 million. The following table provides a summary of the County's governmental and business -type net assets for 2013 and 2014. Table 1 Net Position (in Millions) Assets Current and other assets Capital assets Total assets Liabilities Current and other liabilities Long-term liabilities Total liabilities Deferred Inflows Property Taxes Total Deferred Inflows Net Position Invested in capital assets Restricted Unrestricted Total net position Governmental Activities 2013 2014 $ 286.45 $ 350.21 $ 270.07 297.89 _ $ 556.52 $ 648.10 $ - $ Business -type Activities 2013 2014 Total 2013 2014 - $ 286.45 $ 350.21 - 270.07 297.89 - $ 556.52 $ 648.10 $ 16.79 $ 21.07 $ - $ - $ 16.79 $ 21.07 8.94 8.10 8.94 8.10 $ 25.73 $ 29.17 25.73 29.17 119.99 $ 144.54 119.99 $ 144.54 $ 270.08 $ 297.89 $ 81.96 110.32 58.76 66.20 - $ 119.99 $ 144.54 - $ 119.99 $ 144.54 $ 410.80 $ 474.41 $ 270.08 $ 297.89 81.96 110.32 58.76 66.20 $ 410.80 $ 474.41 A portion of Weld County's net position (14.0%) represents unrestricted net position of $66,20 million, which may be used to meet the County's ongoing obligations to citizens and creditors. Another significant portion of the County's net position (62,8%) reflects its investment in capital assets. These assets include land, buildings, machinery, equipment and infrastructure. These capital assets are used to provide services to citizens; consequently, they are not available for future spending. Although the investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional $110.32 million of the County's net position (23.3%) represents resources that are subject to external restrictions on how they may be used. Included in this category is the TABOR emergency reserve of $7,00 million, $4.73 million in reserves for insurance claims, $8.10 million for health, economic and social assistance programs, $89,43 for road and bridge maintenance and $1.06 million for other purposes. At the end of 2014 Weld County had positive balances in all three categories of net position, Changes in Net Position Governmental and Business -type activities increased the County's net position by $63.61 million in 2014. The following table indicates the changes in net position for governmental and business -type activities in 2013 and 2014. 21 Changes in Net Position (in Millions) Revenues Program revenues: Charges for services Operating grants and contributions General revenues: Property taxes Other taxes Other revenues Total revenues Expenses General government Public safety Streets and highways Culture and recreation Health & Welfare Economic Assist Paramedic services Total expenses Increase (decrease) in net position before Transfers Transfers Net Position Beginning Net Position Ending Governmental Activities 2013 2014 Business -type Activities 2013 2014 $ 51.70 $ 59.30 $ 0.00 $ 32.28 30.44 0.07 105.94 115.69 0.00 9.64 14.38 0.00 22.61 37.78 0.00 _ $ 222.17 $ 257.59 $ 0.07 $ $ 43.46 $ 46.77 $ 47.90 54.03 39.96 42.89 1.51 1.79 38.79 39.09 8.48 9.41 0.00 0.00 180.10 193.98 0.00 $ 0.00 0.00 0.00 0.00 0.00 0.07 0.07 Total 2013 2014 0.00 $ 51.70 $ 59.30 0.15 32.35 30.59 0.00 105.94 115.69 0.00 9.64 14.38 0.00 22.61 37.78 0.15 $ 222.24 $ 257.74 0.00 $ 43.46 $ 46.77 0.00 47.90 54.03 0.00 39.96 42.89 0.00 1.51 1.79 0.00 38.79 39.09 0.00 8.48 9.41 0.15 0.07 0.15 0.15 180.17 194.13 42.07 63.61 0.00 0.00 42.07 0.00 0.00 0.00 0.00 0.00 368.73 410.80 0.00 0.00 368.73 $ 410.80 $ 474.41 $ 0.00 $ 0.00 $ 410.80 63.61 0.00 410.80 $ 474.41 Governmental Activities. Governmental activities increased Weld County's net position by 863.61 million in 2014. Key elements of this increase are as follows: • Total revenues were up $35.42 million, 15.94% from the prior year, primarily due to increase in property taxes ($9.75 million) other taxes ($4.74 million) other general revenue ($15A7 million) and charges for services ($7.60 million). • Expenses totaled $193.98 million. This represents a 7.71% increase, with the majority of increases in general government ($3.31 nvllion), public safety ($6.13 million), and streets and highways ($2.93 million). Expenditrues for health and welfare ($0.30 million), economic assistance ($0.93 million) and culture and recreation ($0.28 million) had small increases in 2014. Business -Type Activities. The County's only business -type activity, Northern Colorado Regional Forensic Laboratory, net assets did not changeas a result of 2014 activities, The crime lab began operations in August of 2013 and all operating expenditures were reimbursed by grant funds. 22 FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS As noted earlier, Weld County uses fiend accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds Overview. The focus of County governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of 2014, the combined ending fund balance of County governmental funds was $166.27 million. Of this amount the approximately $1.94 million represents an investment in non -spendable items (51.33 million inventory, and $0.61 million in prepaid expenses). Another $93.53 million of fund balance is restricted use for emergencies (S7.00 million) public works ($77.83 million) health, welfare and economic assistance ($7.65 million), and other programs ($1.05 million). Fund balance committed to economic development ($2.11 million), capital projects ($18.64 million), contingencies (534.99 million) and environmental conservation ($2.04 million) is S57.78 million. Another $1.58 million is assigned to budget appropriations and $11.44 million is unassigned to continue providing services to the general public. The County has six major governmental funds. These are 1) General Fund; 2) Public Works Fund; 3) Social Services Fund; 4) Human Services Fund; 5) the Contingent Fund; 6) Capital Expenditures Fund. 1. General Fund. This is the primary operating fund of the Weld County Government. It accounts for many of the County's core services, such as law enforcement, planning, and elections. The general fund balance was 523.48 million as of December 31, 2014, an increase over the $21.57 fund balance as of December 31, 2013, General fund revenes for property taxes, licenses permits and fees, and charges for service all increased in 2014. This increase in revenues was offest by increases in all categories of expenditures. Operating transfers out increased slightly in 2014. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 10.33% of total 2014 expenditures, while total find balance is 21.20% of the same amount. 2. Public Works Fund. The Public Works Fund is also state mandated. The fund records costs related to County road and bridge construction and maintenance. The Public Works Fund had $79.04 million in fund balance at the end of 2014. This amount was $26.72 million more than the previous year. Revenues in the Public Works fund were up in 2014 with a major increase from the reassignment of oil and gas lease revenue to the fund the cost of the haul route program (HARP), and an increase in property revenue. 3. Social Services Fund. The Social Services Fund is mandated by State Statute. This fund accounts for the local share of many Federal and State public welfare programs. The fund carried a $3.61 million balance at the end of 2014 up 50.37 from its balance in 2013 due to an increased state allocation for child welfare programs. 4. Human Services Fund. The Human Services Fund accounts for various Federal and State human services grants. Primary finding agencies are DOL, HHS, and CSA. 5. Contingent Fund. The Contingent Fund records any property tax revenue levied by the Board of County Commissioners to cover reasonable unforeseen expenditures. The fund balance decreased by $0.01 million in 2014 from property taxe revenue of 54.9 million and transfers out of $5.0 million. 6. Capital Expenditure Fund. The Capital Expenditure Fund accounts for the construction of major capital facilities. These are the construction of graders sheds, back-up dispatch center, and CNG fueling stations, upgrade of communications towers, and the lining of gravel pits for water storage. PROPRIETARY FUNDS OVERVIEW The County's proprietary fund statements provide the same of information found in the government -wide statements, but in more detail. The County has one enterprise -type fund, The Northern Colorado Regional Forensic Laboratory. The crime lab began operations in August of 2013 and all operating expenditures were reimbursed by grant funds. Weld County has four internal service funds. Information on these funds is aggregated in the Proprietary Fund financial statements. 23 GENERAL FUND BUDGETARY HIGHLIGHTS Comparison of Total Fund Balances as of December 31, 2013 and 2014 C O 26 10 General Fund Public Works Social Services Human Services Contingent Fund Capital Projects Other Govt. Funds 2O13 2014 The County's budget is prepared according to Colorado statutes. The most significant budgeted fund is the General Fund. In December of 2013, the Board of County Commissioners appropriated $110.28 million for general find expenditures and other financing uses for 2014. Table 3 2014 General Fund Budget (in Millions) Original Budget Amendments Final Budget Actual Revenue and other financing sources $ 109.61 Expenditures and other financing uses $ 110.28 $ 9.27 $ 118.88 $ 119.94 $ 14.96 $ 125.24 $ 118.03 24 During 2014 mid -year budget amendments included: • $1.1 million for the engineering design work for WCR 49 • $.05 million transferred to Insurance Fund for claim reserves • $1.9 million transferred to Motor Pool Fund for additional equipment • $1.0 million transferred to Capital Expenditure Fund for purchase of property in downtown Greeley • $3.5 million for communications equipment • $1.8 mullion for unanticipated grants, including flood recovery • Supplemental appropriations were made to various departments for salary and benefit reallocations. The increase was possible because of excess fund balance, various departments under spending their budgets, and additional unanticipated revenues. Those revenues include building permits ($1.2 million), intergovermental revenues (S4.1 million) and charges for services ($1.6 million). CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. Weld County's investment in capital assets for its governmental and business type activities as of December 31, 2014 totals S297.89 million (net of accumulated depreciation). This investment includes all land, buildings, machinery, equipment, intangible assets and infrastructure. Total capital assets increased 10.3% in the current fiscal year. Major capital asset events during the current fiscal year include the following: • Road construction or major improvements totaling $15.51 million. • Lining of gravel pits for water storage $4.5 million • Upgrade of communications towers $7.3 million • New grader sheds S0.7 million • Purchase of Downtown Greeley land $1.55 million • Purchase of the Chase Plaza in Greeley $5.775 million The County implemented the "depreciation method" under GASB 34 for its road and bridge infrastructure assets, except for the gravel roads, where the "modified approach" was used. The County's policy is to maintain gravel roads at a condition of fair or better. This level of condition is being maintained consistently on over 97% of miles of road. Additional information on the County's capital assets can be found in Note 6 of this report. Construction commitments are discussed in Note 11. Long-term Debt. At December 31, 2014, Weld County had no outstanding long-term debt or debt from Certificates of Participation (COP). The last COP was paid off early on August 1, 2007. The Weld County Home Rule Charter provides for a general obligation debt limit of 3% of assessed valuation. The county had a general obligation debt capacity of S273.90 million in 2014. The county currently has no debt subject to the limitation. No new debt was issued in 2014. Additional information on Weld County's debt can be found in Note 8. 25 Other Matters. The following factors are expected to have a significant effect on the County's financial position or results of operations and were taken into account in developing the 2015 budget. • Complete road and bridge permanent repairs and mitigation projects resulting from the September, 2013 flooding . • Continue implementation of the Strategic Investment Plan for the Future of Weld County. • Fund the oil and gas revenue fluctuation reserve in the Contingency Fund • Fund innovation and technology projects identified • Effective January 1, 2014, perform all county information technology functions with county staff, instead of by use of ACS contract services • Implement a countywide training program with a Trainer position in Human Resources • Implement a criminal justice planning function in the county • Implement a Restorative Justice Program in the District Attorney's Office for juvenile offenders • Add a Pre -Trial Specialists to accommodate HI3 13-1236 changes to jail bonding criteria • Add seven positions in the North Jail to open up 54 additional inmate beds • The Weld County Regional Communications Center (WCRCC) will move to a new organizational structure with Weld County operating the WCRCC and dispatching all public safety agencies in the county, including City of Greeley Police and Fire • Participate in the Title IV -E (Foster Care and Adoption Assistance Entitlement Grant) waiver project • Accommodate the impacts of the Affordable Care Act on Medicaid eligibility applicants • Add two additional Planning positions to accommodate new development • Implement a small business development incentive program • Continue to fluid a Haul Route Program (HARP) to improve county roads impacted by the energy industry due to new oil and gas drilling exploration • Fund current and past administrative costs of the Weld County Retirement Plan. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of Weld County's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this or for additional financial information should be addressed to the Director of Finance and Administration, 1 150 O Street, Greeley, CO 80631. Request for additional information regarding the Housing Authority should be addressed to Toni Teixeira, Executive Director, Weld Housing Authority, 903 6th Street, Greeley, CO 80631. 26 BASIC FINANCIAL STATEMENTS COUNTY OF WELD STATE OF COLORADO Statement of Net Position December 31, 2014 ASSETS Cash and investments Property taxes receivable Receivables (net of allowance) Dues from other governements Internal balances Inventories Other assets Net other post employment benefits assets Restricted assets: Cash and equivalents Capital assets not being depreciated Capital assets net of depreciation Total assets LIABILITIES Accounts payable and other current liabilities Accrued liabilities Due to other governments Unearned Revenue Other liabilities Long-term liabilities: Due within one year: Compensated absences Due in more than one year: Compensated absences Net pension obligation Total liabilities Primary Government Component Units Governmental Business -Type Activities Activities $ 190,475,200 $ 144,313,856 9,475,399 2,755,203 35,578 1,390,987 672,055 652,454 443,607 38,713,409 259,179,566 36,157 (35,578) Total Housing E911 Authority Authority 190,475,200 $ 1,366,074 $ 760,501 144,313,856 9,511,556 2,755,203 1,390,987 672,055 652,454 443,607 38,713,409 - 259,179,566 648,107,314 579 DEFERRED INFLOWS OF RESOURCES Property Taxes Total Deferred Inflows of Resources NET POSITION Invested in capital assets Restricted for: Programs Emergencies Claims Public Works Other purposes Unrestricted Total net position 9,395,621 8,552,073 37,387 2,843,321 4,380 233,470 3,770,944 4,325,159 29,162,355 144,538,384 857,595 311,404 1,284 14,525 7,897 3,698,198 648,107,893 2,247,375 4,770,103 9,395,621 8,552,073 37,387 2,843,321 4,380 233,470 3,770,944 4,325,159 29,162,355 - 144,538,384 144.538,384 - 144.538.384 297,892,975 8,104,172 7,000,000 4,734,409 89,429,234 1,049,628 66, 196,157 $ 474,406,575 See accompanying notes to the basic financial statements - 297,892,975 52,545 14,853 25,013 67,398 25,013 7,897 3,698,198 - 8,104,172 - - - 7,000,000 - - - 4,734,409 - - 89,429,234 - - - 1,049,628 579 66,196,736 2,172,080 1,046,892 $ 579 $ 474,407,154 $ 2,179,977 $ 4,745,090 27 COUNTY OF WELD STATE OF COLORADO Statement of Activities Year Ended December 31, 2014 Program Revenues Primary government: Governmental activities: General Government Public Safety Streets and Highways Health and Welfare Culture and Recreation Economic Assistance Total governmental activities Business -type activities Regional Forensic Laboratory Total primary government Component units: Housing Authority E-91 1 Authority Total component units Expenses $ 46,770,013 54,027,026 42,894,441 39,085,217 1,792,648 9,408,488 193,977,833 Charges for Services $ 13,477,033 13,229,980 5,825,407 25,04 1,461 1,154,300 567,753 59,295,934 Operating Grants and Contributions Capital Grants and Contributions $ 2,263,342 $ 3,499,909 14,237,862 2,850,676 409,938 7,181,132 30,442,859 147,713 149,615 $194,125,546 $ 59,295,934 $ 30,592,474 $ - $ 2,806,923 $ 33,872 $ 2,614,740 $ 3,982,290 2,335,328 $ 6,789,213 $ 2,369,200 $ 2,614,740 $ - GENERAL REVENUES Taxes: Property taxes Specific ownership Severance/Tobacco Royalties Miscellaneous Unrestricted investment earnings Total general revenues and transfers Changes in net position Net position - beginning Net position - ending See accompanying notes to the basic financial statements 28 Net (Expenses) Revenue and Changes in Net Position Primary Government Governmental Activities Business -type Activities $ (31,029,638) $ (37,297,137) (22,831,172) (11,193,080) (228,410) (1,659,603) (104,239,040) 1,902 $ (104,239,040) $ 115,694,397 10,028,385 4,350,529 31,503,068 4,807,802 1,473,338 167,857,519 63,618,479 410,788,096 $ 474,406,575 Total $ (31,029,638) $ (37,297,137) (22,831,172) (11,193,080) (228,410) (1,659,603) _ (104,239,040) 1,902 Component Units Housing £911 Authority Authority $ 1,902 $ (104,237,138) $ - $ 115,694,397 10,028,385 4,350,529 31,503,068 4,807,802 1,473,338 167,857,519 1,902 63,620,381 (1,323) 410,786,773 579 $ 474,407,154 (158,311) $ - - (1,646,962) (158,311) $ (1,646,962) 8,671 14,420 8,671 14,420 (149,640) (1,632,542) 2,329,617 6,377,632 $ 2,179,977 $ 4,745,090 COUNTY OF WELD STATE OF COLORADO Governmental Funds Balance Sheet December 31, 2014 ASSETS Cash and Investments Receivables (net of allowance for uncollectibles): Property taxes receivable Delinquent property taxes Accounts Special Assesment Due From other County Funds Advances to Other Funds Due From other Governements Inventory Other Assets Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable Accrued Liabilites Other Liabilities Due to other County funds Due to other Goverments Unearned Revenues Unexpended Grant revenue Total Liabilities Deferred Inflows of Resources: Property Taxes Grant Revenue Total Deferred Inflows of Resources Fund Balances: Nonspendible Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances General Fund $ 28,252,718 116,838,133 39,795 1,231,985 125,490 36,157 66,060 1,412,731 122,439 1,211,219 560,938 40,740 $ 147,273,715 $ 105,457,746 $ 13,245,332 Public Works Fund $ 80,775,009 Social Services $ 2,825,406 8,591,845 4,687 337,651 3,557,718 2,250,915 65,209 64,068 797,329 6,735,239 117,059,781 117,059381 683,377 7,671,021 2,105,601 1,581,113 11,437,583 23,478,695 79,042,733 3,610,053 $ 147,273,715 $ 105,457,746 $ 13,245,332 16,789,874 5,321 6,637,297 30,000 9,026 4,079,462 352,294 34,534 26,666 4,492,956 16,821,329 5,100,728 21,922,057 1,211,219 77,831,514 32,272 192,542 785,524 4,380 2,342 37,387 3,200 1,025,375 8,609,904 8,609,904 40,740 3,569,313 See accompanying notes to the basic financial statements 30 Other Total Human Contingent Capital Governmental Governmental Services Fund Expenditure Funds Funds $ 236,344 $ 34,988,751 $ 19,510,889 $ 4,946,780 $ 171,535,897 3,217 1,276,412 3,470 4,240 qmp - 142,219,852 - 57,513 1,217,441 9,427,591 30,000 276 167,064 36,157 2,755,203 1,333,658 1,526 603,204 $ 1,515,973 $ 34,992,221 $ 19,515,129 $ 6,166,023 $ 328,166,139 142,420 146,648 33,351 434,662 757,081 3,470 842,611 51,124 8,865,877 236,333 3,771,714 4,380 31,628 167,064 37,387 128,834 222,768 - 1,231,991 874,239 416,291 14,301,181 4,240 - 142,498,724 - 5,100,728 3,470 4,240 - 147,599,452 - - 1,526 1,936,862 758,892 - - 3,705,217 93,535,957 34,988,751 18,636,650 2,042,989 57,773,991 - - - - 1,581,113 - - - - 11,437,583 758,892 34,988,751 18,636,650 5,749,732 166,265,506 $ 1,515,973 $ 34,992,221 $ 19,515,129 $ 6,166,023 $ 328,166,139 COUNTY OF WELD STATE OF COLORADO Reconciliation of Total Governmental Fund Balances To Statement of Net Position December 31, 2014 Total governmental fund balances Amounts reported for governmental activities in the Statement of activities are different because: Capital Assets used in governmental activities are not financial resources and therefore are not reported in the funds Long-term liabilities, including compensated absences, are not due and payable in the current period and therefore are not reported in the funds Compensated Absences Net Pension Obligation Net Other Post Employment Benefits Asset Accounts receivables that do not provide current financial resources, are offset by deferred inflows in the funds Internal service funds are used by mangement to charge the costs of insurance and other services to individual funds_ The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position Internal Services used by Enterprise Fund $ 166,265,506 277, l 85,724 (4,004,414) (4,325,159) 652,454 5,100,728 33,532,315 579 Net position of governmental activities $ 474,406,575 See accompanying notes to the basic financial statements 32 33 COUNTY OF WELD STATE OF COLORADO Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended December 31, 2014 Public Works General Fund Fund Social Services REVENUES: Taxes Licences and Permits Intergovernmental Fines and Forfitures Charges for Services Miscellaneous Fees Total Revenues EXPENDITURES: General Governement Public Safety Public Works Public Health and Welfare Culture and Recreation Econominc Assistance Capital Expenditures Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers - in Transfers - out Total Other Financing Sources (Uses) Net Changes in Fund Balance Fund Balances at Beginning of Year Fund Balance at End of Year See accompanying notes to the basic financial statements $ 82,740,957 $ 4,873,283 8,1 19,546 332,404 7,168,378 5,999,921 10,618,619 119,853,108 25,627,740 $ 8,420,796 561,063 14,949,885 23,020,426 2,099,273 34,003,378 1,381,800 78,623,139 31,441,222 47,388,166 51,897,506 3,330,619 56,449,853 233,945 1,389,355 1,834,353 4,673,165 451,343 30,955,815 147,426 110,747,109 56,901,196 31403,241 9,105,999 21,721,943 85,000 5,000,000 7,286,814 (7,20"1,814) 5,000,000 1,904,185 26,721,943 337,981 31,361 31,361 369,342 21,574,510 52,320,790 3,240,711 $ 23,478,695 $ 79,042,733 $ 3,610,053 34 Capital Human Services Contingent Fund Expenditure Other Governmental Funds - $ 4,989,437 $ 8,231,942 $ 7,180,352 366,795 138,755 7,685,902 7,736,989 6,296 7,743,285 749,856 202,363 4,989,437 9,184,161 90,868 10,672,786 10,763,654 (57,383) 4,989,437 (1,579,493) 12,351 31,361 5,000,000 1,400,000 (19,010) (5,000,000) 1,400,000 (76,393) (10,563) (179,493) 835,285 34,999,314 18,816,143 $ 758,892 $ 34,988,751 $ 18,636,650 Total Governmental Funds 20,614 $ 3,244,173 18,980 3,389,775 173,422 6,846,964 141,205 8,250,132 404,589 12,379 8,808,305 (1,961,341) 4,441,746 1,052,283 3,389,463 1,428,122 130,031,486 5,434,346 56,514,382 351,384 13,024,221 41,065,332 12,202,782 258,623,933 47,479,034 52,038,711 59,780,472 39,439,892 1,793,944 9,571,342 15,963,395 226,066,790 32,557,143 10,970,458 13,370,458 (2,400,000) 30,157,143 4,321,610 136,108,363 $ 5,749,732 $ 166,265,506 COUNTY OF WELD STATE OF COLORADO Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31, 2014 Net Changes in fund balances - total governmental funds $ 30,157,143 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period. Capital asset additions Depreciation expense Excess of capital outlay over depreciation 51,519,877 (22,142,551) 29,377,326 Net effect of various transactions involving capital assets (i.e. sales, disposals) is a decrease to net position (1,791,317) Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds Compensated absences Net Pension Obligation Net Other Post Employment Benefits Obligation (435,595) 1,282,681 285,570 Accounts receivables that do not provide current financial resources, are offset by deferred inflow of resources in the funds (91,001) Internal service funds are used by mangement to charge the costs of certain activities, such as insurance, telecommunications and fleet services, to individual funds. The net revenue (expense) of certain internal service funds is reported with governmental activities. 4,835,574 Internal services used by Enterprise Funds (1,902) Change in net position of governmental activities $ 63,618,479 See accompanying notes to the basic financial statements 36 COUNTY OF WELD STATE OF COLORADO Statement of Net Position Proprietary Funds December 31, 2014 ASSETS Cash and cash equivalents Property taxes receivable Accounts Due From other County Funds Inventory Other Assets Total Current Assets Capital Assets: Improvements other than buildings Construction in progress Buildings Machinery and Equipment Accumulated Depreciation Total Capital Assets Total Assets LIABILITIES AND FUND EQUITY Current Liabilities: Accounts Payable Accrued Liabilites Unearned Revenues Adv from General Fund Total Current Liabilities Deferred Inflows of Resources Property Taxes Total Deferred Inflows Total Liabilities Net Position Invested in capital assets Restricted for: Insurance Claims Unrestricted Total Net Position Some amounts reported for business -type activities in the statement of net assetsare different because certain internal scrvicefund assets and liabilities are included with business -type activities Total Net Position See accompanying notes to the basic financial statements Business -type Activities Regional Forensic Laboratory 36,157 36,157 36,157 36,157 36,157 36,157 579 579 Governmental Activities Internal Service Funds $ 19,382,910 2,036,491 17,808 57,329 68,851 21,563,389 1,131,815 36,000 2,048,377 43, 146,437 (25,655,378) 20,707,251 42,270,640 529,744 4,780,359 1,388,562 6,698,665 2,039,660 2,039,660 8,738,325 20,707,251 9,157,022 3,668,042 $ 33,532,315 37 COUNTY OF WELD STATE OF COLORADO Statement of Revenue, Expenses and Changes in Net Position Proprietary Funds For the Fiscal Year Ended December 31, 2014 Operating revenues: Employer Contributions Charges for Services Total Operating Revenues Operating expenses: Personnel Services Supplies Purchased Services Insurance and Bonds Depreciation Other Claims Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Taxes Earnings on investments Miscellaneous Grants Gains (loss) on Disposal Judgement and Damages Total Nonoperating revenues (expenses) Income (loss) before contributions or transfers Transfers - in Changes in Net Position Total Net Position Beginning of Year Total Net Position at End of Year Some amounts reported for business -type activities in the statement of activities are different because the net revenue (expense) of certain internal service funds is reported with business -type activities. Change in net position of business -type activities See accompanying notes to the basic financial statements Business -type Activities Regional Forensic Laboratory Governmental Activities Internal Service Funds - $ 17,395,414 - 10,892,770 - 28,288,184 6,211 140,596 2,808 149,615 (149,615) 149,615 149,615 239,057 2,451,704 6,704,881 457,299 3,819,627 255,560 14,633,063 28,561,191 (273,007) 1,994,934 29,314 14,997 41,305 489,632 138,399 2,708,581 2,435,574 2,400,000 4,835,574 28,696,741 - $ 33,532,315 1,902 $ 1,902 38 COUNTY OF WELD STATE OF COLORADO Statement of Cash Flows Proprietary Funds For the fiscal year ended December 31, 2014 CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers Cash flows from internal customers Cash payments to external suppliers for goods and services Cash payments to internal suppliers for goods and services Cash payments to employees for services Judgements/damages/losses Miscellaneous revenues Net cash provided (used) by operating activities CASHFLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes Transfers/Advances Grants Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Proceeds from sale of capital assets Net cash provided (used) for capital and related Financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depredation expense Judgements/damages/losses Miscellaneous revenue Change in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in due from other funds (Increase) decrease in inventories (Increase) decrease in other assets Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in other liabilities Increase (decrease) in deferred revenue Total adjustments Net cash provided (used) by operating activities Noncash investing, capital, and financing activities: Contributions of capital assets from (to) government Loss on Disposal of Asset See Accompanying notes to the basic financial statements See accompanying notes to the basic financial statements Business -type Activity Enterprise Fund Regional Forensic Laboratory Governmental Activites Internal Service Funds (32,542) (117,073) (149,615) (35,662) 185,277 149,615 (149,615) (149,615) 128,897 28,024,807 (23,067,271) (916,604) (71,529) 138,399 14,997 4,251,696 1,994,445 2,400,000 1,055,793 5,450,238 (4,185,536) 618,287 (3,567,249) 29,314 6,163,999 13,218,911 19,382,910 (273,007) 3,819,627 138,399 14,997 25,060 5,949 39,852 334,692 (396,104) 520,796 (35,612) 57,047 4,524,703 4,251,696 33,604 39 COUNTY OF WELD STATE OF COLORADO Statement of Fiduciary Net Position Fiduciary Funds December 31, 2014 Weld County Other Post Employment Agency Funds Retirement Benefits ASSETS Cash and cash equivalents $ 9,157,630 $ Accounts Receivable (net of allowance for uncollectible): 1,484 Restricted Assets Restricted Cash Restricted Investments Total Assets LIABILITIES AND NET POSITION Accounts Payable Due to other Goverments Total Liabilities Net Position Restricted for Pension Held in Trust for Other Post Employment Benefits TOTAL NET POSITION See accompanying notes to the basic financial statements - $ - 1,487,182 1,809,955 183,678,468 $ 9,159,114 $ 185,165,650 $ 1,809,955 $ 189,544 $ 17,766 $ 8,969,570 $ 9,159,114 $ 17,766 $ 185,147,884 1,809,955 $ 185,147,884 $ 1,809,955 40 COUNTY OF WELD STATE OF COLORADO Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended December 31, 2014 Weld County Other Post Employment Retirement Benefits Additions: Employer Contributions Employee Contributions Earnings on Investments, net of investment related expenses of $382,190 and SO Net Depreciation in Value of investments Reimbursment of Prior Years Expenditures Total Additions Deductions: Actuarial Fees Benefit Payments Supplies Total Deductions Change in Net Assets Net Postion - Beginning Net Position - Ending See accompanying notes to the basic financial statements $ 7,179,487 $ 7,179,473 94,185 15,550 7,325,729 4,807,036 10,007,475 36,499,200 109,735 96,991 13,593,270 577,738 3,850 13,694,111 577,738 22,805,089 (468,003) 162,342,795 2,277,958 $ 185,147,884 $ 1,809,955 41 NOTES TO THE FINANCIAL STATEMENTS 42 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Note 1 - Summary of Significant Accounting Policies: The County of Weld, Colorado ("County") was established in 1861, and on January 1, 1976, became a home rule county under the provisions of Section 30-35-501, CRS, 1973. The County operates under an elected commissioner form of government. The County provides the full range of services contemplated by statute or charter. These include general goverrunent functions, public protection and safety, health, social services, human resource services, public improvements, road and bridge operations, planning and zoning, and general administrative services. The financial statements of the County have been prepared in conformity with generally accepted accounting principles (GA AP) as applied to governmental units. The following summary of significant accounting policies is presented to assist the reader in evaluating the County's financial statements. A. Reporting Entity: Weld County is a political subdivision of the State of Colorado, governed by an elected five -member Board of County Commissioners. There are also four other elected officials of Weld County (Assessor, Clerk and Recorder, District Attorney, and Sheriff). The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations. Each discretely presented component unit is reported in a separate column in the government -wide financial statements (see note below for description) to emphasize that it is legally separate from the government. Discretely presented component units: The Weld County Housing Authority is responsible for assisting Weld County residents with housing assistance. The Board of County Commissioners appoints all of the five -member Housing Authority Board, The County has the ability to remove any of the appointed board members, they can modify decisions made by the board and can hire or fire persons responsible for the day to day operations. The Weld County Housing Authority is governed by state regulations, but was designated as part of the County for budgetary and audit purposes by an act of the Colorado General Assembly in 1989. A complete set of financial statements can be obtained at the entity's administrative offices: Weld County Housing Authority 903 6th Street Greeley, CO 80631 The E911 Emergency Telephone Service Authority Board was created by intergovernmental agreements pursuant to Article 11 of Title 29, C.R.S., as amended, that authorizes the county, municipalities within the county, and special districts within the county to enter into an agreement for the purpose of providing 911 emergency telephone services. Per the state statute cited above, the agreement creates a separate legal entity which is responsible for administering the operations of the 911 emergency telephone service program in Weld County. The authority board consists of seven members with four selected by the Weld County Commissioners, one member each is selected by the City of Greeley, City of Fort Lupton and Weld County Sheriff. Under the by-laws of E911 Authority, Weld County is required to pay all operating costs. They are to maintain all accounts and have accounts audited. State statute requires that all funds be maintained by the Weld County Treasurer. The operation of the E911 authority is done contractually by the Weld County Communication Regional Center. There are no separate financial statements prepared for the E911 component unit. 43 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Because they provide services to or otherwise benefit Weld County, the financial statements of the following organizations are blended into the County financial statements: Weld County Retirement Plan — The Retirement Board consists of five members, two selected by participating employees, two appointed by the Board of County Commissioners, and the fifth being the County Treasurer, The County funds half of the retirement plan, which covers substantially all permanent, full-time employees of Weld County. The operation of the plan is accounted for in the Weld County Retirement Fund, as a Pension Trust Fund, Complete Financial statements can be obtained at the Weld County Treasurer's Office: Weld County Treasurer's Office 1400 North 17th Avenue Greeley, CO 80631 Weld County Finance Corporation — The Weld County Finance Corporation ("Corporation") was formed in 1987 as a not -for-profit corporation under section 501(c)(4)of the Internal Revenue Code, and exists solely to acquire real estate and construct buildings for lease to the County. The Board of County Commissioners appoints the three -member Board of Directors of the Corporation, and approves all projects undertaken by the Corporation. The members of the Board of Directors are employees of the County. There are no separate financial statements prepared for the Weld County Finance Corporation. The Law Enforcement Authorities (LEA) were formed in accordance with Section 30-11-401, CRS. The law enforcement authorities are taxing units created by the county to provide additional law enforcement services by the county sheriff to residents in developed unincorporated areas of the county. The governing board of the law enforcement authorities is the five Weld County Commissioners. Law enforcement services to the authority are provided contractually by the county sheriff There are no separate financial statements prepared for the Law Enforcement Authorities. The Local Improvement Districts (LID) have not been included in the County's financial statements individually, as they are immaterial, but are included as a blended component unit of Public Works, a special revenue fund. The Board of County Commissioners can create these assessment districts to construct or rehabilitate and finance public streets, storm drainage, water systems, sanitary sewer, or street lighting. The Primary purpose of an LID is to assess the costs of public improvements to those who are specially benefited by the improvement. The LID exists only as geographic area within which improvements are constructed and as an administrative subdivision of the county. Having no board of directors, they do not operate in any capacity as an independent governmental entity. The county governing board, Board of County Commissioners, makes all decisions on behalf of this administrative entity. There are no separate financial statements prepared for the Local Improvement Districts. The following related organizations are excluded from the accompanying financial statements because the County's accountability for these organizations does not extend beyond various appointments. North Colorado Medical Center — The Board of County Commissioners owns land underlying the main facility of the Medical Center, which land is currently leased to the Colorado Hospital Finance Authority as part of the security for financing the bonded indebtedness of the Medical Center. The indebtedness is not an obligation of the Board of County Commissioners and no taxpayer funds or Board of County Commissioners funds are obligated to pay any portion of the principal, premium or interest on the Bonds. The land is leased back from the Authority to the Board of Trustees, a seven member Hospital Board of Trustees appointed by the Board of County Commissioners. The Hospital Board of Trustees has entered into an operating sublease of the ground and facilities with NCMC, Inc., a 501(c)(3)entity, with three of its members also serving on the Board of Trustees, which, in turn, has contracted with Banner Health Systems to operate the Medical Center. NCMC has the ability to incur its own debt and its operations are financed totally by patient revenues. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Greeley -Weld Airport Authority — The County Commissioners appoint two of the five Airport Authority Board members. The County has contributed approximately 5% of the funds for capital construction. The Authority has full autonomy under Colorado State law, can incur debt, and funds its operations totally from user fees. Weld Library District — The County Commissioners, together with the concurrence of the city councils of seven participating municipalities, appoint the seven -member Library District Board. The Library District Board has total autonomy under the State Library Act to incur debt, establish budgets, and levy property taxes to support the District's library system. Colorado Counties Casualty and Property Pool (hereinafter referred to as "CAPP")-CAPP was formed July 1, 1986, by an intergovernmental agreement by member counties as a separate and independent governmental and legal entity pursuant to the provisions of Article XIV, Section 18(2) of the Colorado Constitution and Section 29- 1-201 et seq, 24-10-115.5, and 29-13-102, CRS, as amended. Each member county in this intergovernmental agreement has the power under Colorado law to make provision for the property and casualty coverage which constitute the functions and services jointly provided by means of the CAPP. The Insurance Commissioner of the State of Colorado has such authority with respect to the CAPP as is provided by applicable Colorado statutes. The purposes of the CAPP are to provide a risk management fund for defined property and casualty coverage and to assist members in controlling costs by providing specialized governmental risk management services and systems. It is the intent of the members to use member contributions to defend and indemnify, in accordance with the bylaws, any member against states liability or loss to the limit of the financial resources of the risk management fund. It is also the intent of the members to have CAPP provide needed coverage at reasonable costs. All income and assets of CAPP shall be at all times dedicated to the exclusive benefit of its members. Weld County, through its Insurance Internal Service Fund, recognizes an expense for the amount paid to CAPP annually for these coverages. Weld County is a charter member of CAPP and has been a continuous member since July 1, 1986_ B. Government -wide Financial Statements The County's basic financial statements consist of government -wide statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information. The government -wide focus is more on the sustainability of the County as an entity and the change in aggregate financial position resulting from activities of the fiscal period. The statement of net position and the statement of activities display information about the county as a whole. In the government -wide statement of net position, both the governmental and business -type activities columns are presented on a consolidated basis by column. These statements include the financial activities of the primary government, except for fiduciary activities. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The government -wide statement of activities reflects both the direct expenses and net cost of each function of the County's governmental activities and business -like activity. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include charges paid by the recipient for the goods or services offered by the program. Direct expenses and program revenues resulting from interfund activity are treated as such in the participating funds and are not eliminated as part of the consolidation process. Grants and contributions that are restricted to meeting the operational or capital requirements of a particular program and interest earned on grants that is required to be used to support a particular program are included in operating grants and contributions, or capital grants and contributions. Revenues which are not classified as program revenues are presented as general revenues of the County, with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each government function or business segment is self-financing or draws from the general revenues of the County. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Fund Financial Statements The financial transactions of the County are recorded in individual funds. A fund is defined as a fiscal and accounting entity with a self balancing set of accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Separate statements for each fund category — governmental, proprietary, and fiduciary — are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and presented as non -major funds. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Northern Colorado Regional Forensic Laboratory enterprise fund and of the government's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. C. Measurement Focus Government -wide, Prorietary and Fiduciary Fund Financial Statements The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund statements. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. Revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied Under the terms of grant agreements, the County funds certain programs by a combination of specific cost - reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the County's policy to first apply cost - reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues, except for property taxes, to be available if they are collected within 90 days of the end of the current fiscal period. Property taxes are considered available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, licenses, grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 The County reports the following major governmental funds: The General Fund is the general operating fund of the County which accounts for all financial resources that are not accounted for in other funds. Operations of the County such as public safety, planning and zoning, property valuation, tax collection and distribution, vehicle licensing, County administration, and other activities financed from taxes and general revenues are reflected in this fund. The Public Works Fund records costs related to County road and bridge construction and maintenance except for engineering, which is recorded in the General Fund. By State law, Colorado counties are required to maintain a Road and Bridge Fund and a portion of road and bridge taxes is allocated to cities and towns for use in their road and street activities. The Social Services Fund administers human services programs under state and federal regulations. Programs include, but are not limited to, Medicaid, Food Stamps, Foster Care programs, and Temporary Assistance to Needy Families (TANF). Colorado counties are required by state law to maintain a Social Services Fund. The Social Service fund is funded by state and federal grants as well as property taxes. The Human Services Fund primary programs are associated with the Workforce Investment Act (WIA) funded under the Department of Labor, Employment and Training Administration. The Contingent Fund records any property tax revenue levied by the Board of County Commissioners to cover reasonably unforeseen expenditures_ The Capital Expenditures Fund accounts for all the County's construction projects. The County chooses to use the pay as you go plan instead of debt. Property taxes are used to fund the Law Enforcement Center and the expansion of the Detention Center. The County reports the following enterprise fund: The Northern Colorado Regional Forensic Laboratory Fund accounts for all of the maintenance and operation costs for the Northern Colorado Regional Forensic Laboratory. It is funded by rent paid by the participating agencies. The County also reports the following fund types: The Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the County on a cost reimbursement basis. The County's internal service funds report on self-insurance programs for employee health, dental and vision benefits, risk management, unemployment, fleet services, telecommunications and acquisitions of real estate and construction of buildings used by County departments. Services provided and used by internal services funds are not entirely eliminated from the government -wide statement of activities. The primary government program expenses and expenses for the business -type activities on the government -wide statement of activities are decreased to eliminate revenue over expenditures in service funds where revenues exceed expenditures and increased to eliminate internal service funds that have expenditures in excess of revenues. The Agency Funds account for assets held by the County as an agent for individuals, private organizations and other governments. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The County has funds held for other local governmental units, employee/employer payroll taxes, a Section 125 plan, and the Weld County Federal Mineral Lease District. The Fiduciary Trust Funds account for the activities of the Weld County Retirement Plan and the Weld County Other Post Employment Benefit Plans. These funds accumulate resources for pension benefit, and other post employment benefit payments to qualified county employees. The Plans use the accrual basis of accounting. Employee and employer contributions are recognized as revenues in the period in which the contributions are due. Benefits and refunds are recognized when due and payable in accordance with terms of the Plan. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 D. Assets, liabilities, and net assets or equity 1. Deposits and investments The Weld County Treasurer maintains a cash and investment pool that is available for use by all County funds except for some agency funds. Accrued interest receivable is displayed separately. The amount of interest gained through secured investments is credited to the County's General Fund per Colorado State Statutes, with the exception of the Conservation Trust, Capital Expenditures Fund, Liability Insurance Fund and E-911 Authority. "Cash and cash equivalents" for the General Fund Conservation Trust, Capital Expenditures Fund, Liability Insurance Fund and E-911 Authority are stated at fair value. Any bank accounts not maintained by the Treasurer are displayed as "Restricted Assets" within the appropriate fund and are stated at cost. The County considers cash and cash equivalents in proprietary funds to be cash on hand and demand deposits. In addition, because the treasury pool is sufficiently liquid to permit withdrawal of cash at any time without prior notice or penalty, equity in the pool is also deemed to be a cash equivalent. For the purpose of cash flows, cash and cash equivalents are determined by original maturity of three months. Investments are reported at fair values using quoted market prices. 2. Property Taxes Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on December 22, 2014, and are payable either in two installments due on February 28 and June 15 or in full on April 30. The bill becomes delinquent on March 1, May 1, and June 16 and penalties and interest may be assessed by the County_ The County, through the Weld County Treasurer, bills and collects its own property taxes, as well as property taxes of all other taxing authorities within the County. In accordance with Section 14-7 of the Weld County Home Rule Charter, all ad valorem tax levies for County purposes, when applied to the total valuation for assessment of the County, shall be reduced so as to prohibit the levying of a greater amount of tax revenue than was levied from ad valorem taxation in the preceding year plus five percent (5%), except to provide for the payment of bonds and interest. The Board of County Commissioners may submit the question of an increased levy to the County Council and, if in the opinion of a majority of the County Council may grant an increased levy for the County in such amount as it deems appropriate, and the County is authorized to make such increased levy. Any one capital project requiring a capital expenditure out of funds procured by ad valorem taxation equal to a three mill levy for three years, shall be prohibited unless approved by a majority vote of the qualified electors at a general or special election per Section 14-8 of the Weld County Home Rule Charter. 3. Interfund Transactions Transactions between funds that would be treated as revenues, expenditures, or expenses if they involved organizations external to the County are accounted for as revenues, expenditures, or expenses in the funds involved. Transactions which constitute reimbursements of a fund for expenditures or expenses initially made from that fund which are properly applicable to another fund are recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is reimbursed. At year end, outstanding balances between funds are reported as "due to/from other funds". Interfund balances are generally expected to be repaid within one year of the financial statement date. Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances". COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 4. Inventories and Prepaid Items Inventories of governmental funds, which consist of expendable materials held for consumption, are stated at cost utilizing the weighted average cost method. These funds follow the consumption method of accounting whereby expenditures are recorded at the time the inventory items are used. Inventories of proprietary funds are recorded at average cost. Certain payments to vendors reflect cost applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. 5. Capital Assets Capital assets, which include property, plant, equipment, intangible assets (computer software and right of ways for land use), and infrastructure assets (e.g., roads, bridges and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the County as assets with an initial, individual cost of more than $5,000 and a useful life of more than one year. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the valueof the asset or materially extend assets' lives are not capitalized. All reported capital assets, except for gravel roads and intangible assets are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives: Buildings Improvements Infrastructure - Bridges Infrastructure - Roads Equipment Heavy Equipment 20 - 50 years 20 years 50 years 20 years 3-5 years 10 - 20 years Statement 34 allows an alternative approach which would reflect a reasonable value of the asset and the cost incurred to maintain the service potential to locally established minimum standards in lieu of depreciation. To elect this option, the County must develop and implement an asset management system which measures, at least every third year by class of asset, if the minimum standards are being maintained. Related disclosures are additionally required as part of the Required Supplementary Information. The County has elected to use the alternative approach only for gravel roads. 6. Compensated Absences County employees accumulate sick leave and vacation benefits at rates of 8 hours per month and 8 to 16 hours per month, respectively, depending on length of service. In the event of retirement or termination, an employee is paid 100% of accumulated vacation pay. 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; if the employee's date of hire is after January 1, 1985, no sick leave is paid upon retirement or termination. Up to 320 hours of annual vacation may be carried over from one year to the next. Compensatory time is granted (except for official, professional, and administrative positions) at the rate of one and one-half hours for each overtime hour worked, not to be accumulated in excess of forty hours. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 The unpaid sick leave, vacation pay and related benefits at the end of the period will generally not be paid with expendable and available resources. Proprietary funds accrue sick leave, vacation pay and related benefits in the period they arc earned by the employees. The entire compensated absence liability is reported on the government -wide financial statements. Expenditures and liabilities for compensated absences are reported on the government fund statements only when the liability for the compensated absences becomes due. 7. Long-term obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net position. 8. 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 Statement 54 governmental funds report fund balance in classifications based primarily on the extent to which the County is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. As of December 31, 2014, fund balances for governmental funds are comprised of the following: 1.Nonspendablefiund balance includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The "not in spendable form" criteria include items that are not expected to be converted to cash, for example such as fund balance associated with inventories, prepaid amounts, long-term loans and notes receivable, and property held for resale (unless the proceeds are restricted, committed, or assigned). 2.Restricted.timd balance category includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. Restrictions may effectively be changed or lifted only with consent of resource providers. 3.Cornmitted fund balance includes amounts that can be used only for the specific purposes determined by a resolution of the Board of County Commissioners, the County's highest level of decision -making authority. Commitments may be changed or lifted only by the County taking the same formal action that imposed the constraint originally. 4.Assigned ,fund balance comprises amounts intended to be used by the County for specific purposes that are neither restricted or committed. Intent is expressed by ("1) the Board of County Commissioners or (2) an official (Director of Finance and Administration) to which the Board of County Commissioners has delegated the authority to assign amounts to be used by the County for specific purposes but do not meet the criteria to be classified as restricted or committed, and S. Unassigned fund balance is the residual classification for the government's General Fund and includes all spendable amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Order of Fund Balance Spending Policy The County's policy is to utilize funds in the following order: restricted fund balance, committed fund balance, assigned fund balance, and unassigned fund balance. The Board of County Commissioners adopted the County Fund Balance Policy on December 14, 2011, nunc pro tunc January 1, 2011. The policy was created to help reduce the negative impact on the County in times of economic uncertainty, major fluctuations in oil and gas assessed valuations, and potential losses of funding from other governmental agencies, The policy established minimum requirements for reserves and guidelines for the use of certain funds. The reserves and restrictions are also consistent with the requirements under Colorado statute or state constitutional requirements. The County Fund Balance Policy requires the following: • Any remaining fund balance following all restrictions and commitments in the Health Fund shall be assigned for the purpose of future health programs for the benefit of the citizens of Weld County. • Any remaining find balance following all restrictions and commitments in the Social Services Fund shall be assigned for the purpose of future welfare programs for the benefit of the citizens of Weld County • Any remaining fund balance following all restrictions and commitments in the Human Services Fund shall be assigned for the purpose of future welfare, senior, and employment programs for the benefit of the citizens of Weld County • The Contingency Fund shall maintain a minimum fund balance to cover a minimum ten (10) percent of the annual expenditures and maximum of twenty (20) percent of the annual total expenditures as determined by the Director of Finance and Administration to provide: ("1) a reasonable level of assurance that Weld County's operations will continue even if circumstances occur where revenues are insufficient in an amount that is equal to at least one -percent of annual expenditures to cover necessary expenses for public safety, public welfare and public works; (2) there is a major reduction in oil and gas assessed valuations; or (3)there are other unexpected needs or emergency situations costing an amount that is equal to at least one -percent of annual total expenditures that do not routinely occur. The Contingency Fund shall be funded by property tax with a half -mill applied to the county's assessed value annually, unless the Board of Weld County Commissioners adjusts the amount in the annual budget process. • The three -percent TABOR emergency reserve required by Article X, Section 20(5) of the Colorado Constitution shall be a restricted fund balance in the General Fund in an amount equal to sixmillion dollars or three -percent of the TABOR revenue limit, whichever is greater, COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Fund balances for all major and non -major governmental funds as of December 31, 2014, are distributed as follows: Nonsnendable lnventroy Prepaid Expenses Total Nonspendable Restricted for Public Works Health Social Services Human Services TABOR Reserve Other Purposes Total Restricted Committed to Capital Projects Solid Waste Disposal General Contingencies Economic Development Total Commitments Assigned Appropriations in budget Total Assigned General Public Social Works Services 122,439 1,211,219 560,938 683,377 40,740 1,21 1,219 40,740 - 77,831,514 7,000,000 671,021 3,569,313 7,671,021 77,831,514 3,569,313 2,105,601 2,105,601 1,581,113 1,581,1 13 Unassigned 11,437,583 Total Fund Balance 23,478,695 79,042,733 3,610,053 52 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Human Capital Services Contingent Expenditures Non Major Total 1,333,658 1,526 603,204 1,526 1,936,862 758,892 - 77,831,514 3,326,610 3,326,610 - 3,569,313 - 758,892 - 7,000,000 378,607 1,049,628 758,892 - - 3,705,217 93,535,957 - 34,988,751 18,636,650 18,636,650 2,042,989 2,042,989 34,988,751 2,105,601 34,988,751 18,636,650 2,042,989 57,773,991 1,581,113 1,581,1 13 - 11,437,583 758,892 34,988,751 18,636,650 5,749,732 166,265,506 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Encumbrances The County uses encumbrances to control expenditure commitments and enhance cash management. Encumbrances reflect the outstanding contractual obligations for which goods and services have not been received. They are set up to reserve portions of applicable appropriations. Encumbrances still open at year end are not accounted for as expenditures or liabilities, but as a constraint imposed on fund balance. As of December 31, 2014, the county's General Fund has a total of S1,581,113 in encumbrances, which were reported as part of the assigned fund balance on the governmental fund balance sheet. Encumbrance balances by major funds and non -major funds as of December 31, 2014 are: Restricted Committed Assigned Total General Fund $ Public Works Capital Total 9. Net Position 19,654,044 19,654,044 $ - $ 1,581,113 $ 722,306 1,581,113 19,654,044 722,306 722,306 1,581,113 21,957,463 Net position represents the difference between assets and liabilities. Net position invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition construction of improvements of those assets. Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislation adopted by the County or through external restrictions imposed by creditors, grantors, laws or regulations of other governments. The County first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. 10. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes_ Actual results may differ from those estimates. Note 2 - Stewardship, Compliance, and Accountability A. Budgetary information An annual budget and appropriation ordinance is adopted by the Board of County Commissioners in accordance with the Colorado State Budget Act and Weld County Home Rule Charter, The budget is prepared on a basis consistent with generally accepted accounting principles. Budgets are established for all Governmental funds, Internal Service funds and the Enterprise Fund. The accounting system is employed as a budgetary management control device during the year to monitor the individual departments. The fund level is the level of classification at which expenditures may not legally exceed appropriations, except for the General Fund where the department level of expenditures cannot legally exceed appropriations, During the year, several supplemental appropriations were necessary, All annual appropriations lapse at year end. 54 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 The Director of Finance and Administration is authorized to transfer budgeted amounts within departments of each fund. Any revisions that alter the total appropriation for a fund or for any General Fund department must be approved by the County Commissioners through a supplemental appropriation ordinance. During 2014, two supplemental appropriation ordinances were enacted. Budget amounts reported in the accompanying required supplemental information reflect these supplemental appropriations. B. Excess of expenditures over appropriations Excesses of expenditures over appropriations in General Fund departments can be seen in the expenditures section of the Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual. Expenditures exceeded appropriations in the Law Enforcement Authority funds (Special Revenue). The excess expenditures in the law enforcement funds were a result of excess funds being available at the end of the year. The purpose of the law enforcement authorities is to collect taxes to fund law enforcement services in unincorporated parts of Weld County and any excess funds can be used to offset the cost of law enforcement. In the Internal Service funds expenditures exceeded approporations in the Motor Pool and Insurance funds, In the Motor Pool fund fleet depreciation was higher than budgeted as the County fleet expanded, and purchased services were higher than estimated for the year, in the Insurance fund. Note 3 - Equity in Pooled Cash and Investments A. Cash and Investments Cash and investments held by the Treasurer's office at December 31, 2014 as reported by the financial institutions, consisted of the following: Deposits Investments: FFCB 25,000,000 FHLB 7,650,000 FHLM 19,980,000 FNMA 74,965,000 $ 81,388,394 127,595,000 Total $ 208,983,394 Cash and investments held by the Treasurer's office at December 31, 2014, excluding outstanding warrants, reported in government -wide and agency funds consisted of the following: Government -wide Agency and Fiduciary funds Total $193,704,053 15,279,341 $ 208,983,394 B. Deposits The Colorado Public Deposit Protection Act (PDPA) requires that all local governments deposit cash in eligible public depositories. Eligibility is determined by state regulations. The State regulatory commissioners regulate the eligible public depositories. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. PDPA allows the financial institutions to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2014, the County had deposits of $81,388,394 collateralized with securities held by the financial institutions' agents but not in the County name. 55 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 C. Investments The County is required to comply with State statutes which specify investment instruments meeting defined rating, maturity, custodial and concentration risk criteria in which local governments may invest including: • 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 • Guaranteed investment contracts • Money Market Funds in Bank Account The County has no provisions in its investment policy that would further limit investment choices. At December 31, 2014, the County had the following investments: Investment Maturities (in Years) 1 or less $ 0 1 -3 yrs. 64,975,000 3 - 5 yrs. 62,620,000 $127,595,000 Money Market $ 81,388,394 Total $208,983,394 D. Credit Risk State statutes limit investments in U.S. Agency securities to the highest rating issued by nationally recognized statistical rating organizations (NRSROs). At December 31, 2014, the County investments in the Federal Farm Credit Bank, Federal Home Loan Mortgage and Federal National Mortgage Association were rated AAA by Standard & Poor's. Federal Home Loan Bank investments were rated AA+ by Standard & Poor's at December 31, 2014. Money Market Funds were managed by Wells Fargo Bank in accordance with state regulations pledged at 102% Government Guaranteed Bonds and are AAA rated. E. Concentration of Credit Risk State statute does not limit the amount the County may invest in one issuer. At December 31, 2014, the County's investments in Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage, and Federal National Mortgage Association and Federal Home Loan Mortgage represented 19%, 6%, 16% and 59%, respectively of the County's total investments. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 F. Interest Rate Risk State Statutes limit the maximum maturity date unless an exception is made by the county commissioners, which does not exist at the present time, to five years. The weighted average maturity in the portfolio on December 31, 2014 was 3.18 years. This factor combined with the high quality credit risk of the portfolio limit interest rate risk to a very small percentage of the portfolio. In fact, at year end the average mark -to -the -market was within one percent of the county's basis. G. Money Market Funds in Bank Account The County had 526,123,508 invested in overnight pooled money with Wells Fargo on December 31, 2014. The County's investment at Wells Fargo is a direct obligation of the bank and the funds are maintained in a money market account earning a negotiated rate of return. The collateral for this account is in an undivided interest against a pool of U.S. Government securities meeting the PDPA requirements of the State of Colorado, which is administered under the State's Banking Division. The fair value of all of the funds shares are the same and are priced at one dollar and are liquid daily. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions_ Substantially all securities owned are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian's internal records identify the investments owned by the participating governments. H. Restricted Cash The December 31, 2014 restricted cash balance of $443,607 is made up of $65,000 advanced to cover insurance claims and 5378,607 that must be used in accordance with the Conservation regulations set by the lottery authority. I. Component Units The carrying balance of the Housing Authority's cash deposits was $1,380,598 at December 31, 2014. Bank and investment balances before reconciling items were $1,380,598 at that date, the total amount of which was fully insured by depository insurance or secured with collateral held by the Authority's agent in its name. Deposits consist of the following: Checking, money Market and savings account $ 1,380,598 Restricted cash consists of tenant section 8 HAP reserves and escrow. The available cash balance of 5760,501 for the E911 authority is included in the Agency and Fiduciary Fund Cash balance of $15,279,341 held at the Weld County Treasurers Office listed above. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Note 4 - Inter -fund Transactions Due to/from other funds: The county reports inter -fund balances between many of its funds. Some of the balances are considered immaterial and are aggregated into a single column or row. The sum of all balances presented in the table agrees with the sum of interfund balances presented in the balance sheet for governmental and proprietary funds. The balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Interfund balances are generally expected to be repaid within one year of the financial statement date. Receivable Fund General Public Works Social Services Health Transfers in/out Payable Fund General Fund Public Works Social Services Human Services Capital General Social Services Human Services General Fund $ 55,907 34,534 2,289 1,132 31,628 9,026 53 32,219 276 $ 167,064 Transfers are indicative of funding for capital projects or subsidies of various County operations and re -allocation of special revenues. The following schedule briefly summarizes the County's transfer activity: Transfer From: Human General Fund Services Transfer To: General Fund $ Public Works Social Services Human Services 12,351 Capital 1,000,000 Non -Major Government 3,874,463 Internal Service 2,400,000 $ - $ 31,361 Contingent Non -Major Total Fund Governmental 5,000,000 $ 85,000 $ 85,000 - 5,000,000 - 31,361 - 12,351 400,000 1,400,000 567,283 4,441,746 - 2,400,000 7,286,814 31,361 5,000,000 1,052,283 13,370,458 58 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Note 5 - Allowance for Uncollectible Accounts Receivable The allowance for uncollectible receivables consists of the following at December 31, 2014: Fund Type General Public Works Social Services Contingent Capital Expenditures Internal Service Total Allowance for Uncollected $ 40,284 5,458 4,633 12,409 5,156 1,104 $ 69,044 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Note 6 - Capital Assets Capital asset activity for the year ended December 31, 2014, was as follows: Governmental activities Capital Assets not being depreciated Land and water rights Intangible Assets Gravel Roads Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Buildings Improvements Equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation Buildings imporvements Equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Beginning Balance $ 8,886,168 1,201,794 13,881,237 9,05 1,474 33,020,673 138,185,404 11,392,924 57,982,702 337,717,073 545,278,103 39,361,485 3,715,862 31,272,370 233,879,347 308,229,064 237,049,039 Increases Transfers In Decreases (Out) $ 640,500 $ 623,987 1,126,740 28,606,580 30,997,807 6,937,408 1,117,790 7,1 19,370 9,683,601 24,858,169 3,384,075 504,974 5,021,386 17,051,747 750,305 $ - 13,757 (108,764) 172,872 (24,286,887) 923,177 (24,381,894) 293,482 13,023 3,777,768 2,530,932 1,120,400 3,221,368 436,014 19,604,112 6,615,205 24,381,894 217,948 13,023 3,422,125 1,814,755 25,962,182 5,467,851 (1,104,013) Ending Balance $ 8,776,363 1,839,538 14,899,213 13,198,295 38,713,409 145,949,730 15,719,059 61,760,318 364,473,854 587,902,961 42,527,612 4,207,813 32,871,631 249,1 16,339 - 328,723,395 1,147,354 24,381,894 Governmental activities capital assets, net $ 270,069,712 $ 29,893,794 $ 2,070,531 $ 259,179,566 - $ 297,892,975 60 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Housing Authority Capital assets being depreciated: Equipment Total capital assets being depreciated Less accumulated depreciation Equipment Total accumulated depreciation Total capital assets being depreciated, net Housing Authority capital assets, net E-911 Assets: Capital Assets not being depreciated Contruction in progress Capital assets being depreciated: Equipment Total capital assets being depreciated Less accumulated depreciation Equipment Total accumulated depreciation Total capital assets being depreciated, net E-911 capital assets, net Beginning Balance Increases Transfers In Decreases (Out) $ 23,907 $ 1,275 $ 23,907 1,275 16,232 1,053 16,232 1,053 7,675 222 $ 7,675 $ 222 $ - $ $ 450,655 $ 4,529,461 4,529,461 2,351,907 2,351,907 2,177,554 $ 2,628,209 Ending Balance $ 25,182 25,182 17,285 17,285 7,897 - $ 7,897 $ - $ (450,655) $ 2,102,990 1,905,789 450,655 5,177,317 2,102,990 1,905,789 450,655 5,177,317 500,625 1,373,413 500,625 1,373,413 1,602,365 $ 1,602,365 $ 532,376 $ 1,479,119 1,479,1 19 532,376 450,655 3,698,198 - $ 3,698,198 61 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government Public Safety Streeets and Highways Economic Assistance Culture and Recreation Health and Welfare Capital Assets held by government's internal service funds are charged to the various functions based on their usage of the assets Total depreciation expense - governmental activities Component Units Housing Authority E-911 Authority Total depreciation expense component units Note 7 - Risk management and insurance: $ 1,551,877 2,598,232 17,496,759 22,882 8,395 464,410 3,819,627 $ 25,962,182 1 ,053 500,625 $ 501,678 The County is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; and errors or omissions. These activities are accounted for in the Insurance Fund, an internal service fund. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Insurance coverages have not been significantly reduced from prior years and settlements have not exceeded insurance coverage in the past three years. The County manages risks of loss through a combination of commercial insurance, participation in a public entity risk pool, (See Note 1) and self-insurance. These activities are accounted for in the Insurance Fund, an internal service fund. The County provides health, dental and vision insurance benefits to employees, which are funded by employee and employer contributions. These activities are accounted for in the Health Insurance Fund, an internal service fiend. Workers' Compensation coverage is partially self -insured, with insurance coverage of a $750,000 self -insured retention. Estimated liabilities for claims made and claims incurred but not reported (1BNR) at year-end are shown as accrued liabilities in the fund. These estimates are based upon a third -party administrator's review of claims and actuarial projections from historical claims data. Changes in the balances of claims liabilities during the current and prior years are as follows: Unpaid Claims - Beginning Incurred Claims (Includes IBNR's) Claims Paid Unpaid Claims - Ending 2013 $ 1,505,040 1,380,442 (1,404,597) $ 1,480,885 2014 $ 1,480,885 1,462,569 (1,324,386) $ 1,619,068 62 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 The Insurance Internal Service Fund provides protection against losses involving County property, equipment, and liability. Reserves within the fund support higher deductible or self -insured retention level against loss. Payments to CAPP for coverage under the insurance pool are shown as expenses in the Insurance Internal Service Fund. Estimated liabilities under the $125,000 self -insured retention for claims made and claims incurred but not reported (IBNR) at year-end are shown as accrued liabilities in the fund. These estimates are based upon CAPP's claim administrator's review of claims and actuarial projection from historical claims data. Changes in the balances of claims liabilities under the S125,000 self -insured retention during current and prior years are as follows: Unpaid Claims - Beginning Incurred Claims (Includes IBNR's) Claims Paid Unpaid Claims - Ending 2013 $ 187,109 412,676 (387,709) $ 212,076 $ 305,548 2014 $ 212,076 621,841 (528,369) The Health Insurance Internal Service Fund covers the county's dental and vision reimbursement plan. The plan is not an insurance program, but rather an employee reimbursement plan that closes out each year on December 31, for services received on or before that date. No outstanding claims or incurred but not reported liabilities exist for year-end. In addition the Health Insurance Internal Service Fund as of January 1, 2006, covers the county's health insurance program. The plan is a self funded employee health benefit plan with a specific deductible amount of $100,000 per individual, and an aggregate excess loss insurance policy that has both a monthly attachment point and an annual cumulative attachment limit with a terminal attachment point. Attachment points are calculated based upon enrollment. Changes in the balance of the claims liability during the current year are as follows: Unpaid Claims - Incurred Claims Claims Paid Unpaid Claims - Note 8 - Long -Term Debt: Beginning Ending 2013 $ 2,333,324 11,448,614 (11,234,761) $ 2,547,177 2014 $ 2,547,177 12,276,996 (11,991,182) $ 2,832,991 Weld County has no general bonded indebtedness. In accordance with Section 30-35-201 CRS, 1973, the County's general bonded indebtedness is limited to 3% of the assessed valuation, or $273,902,456 at December 31, 2014. The County has issued industrial revenue bonds for the purpose of financing capital projects of several private enterprises. Under terms of a financing agreement, the bonds are sold to a bank, the private enterprise assumes full responsibility for repayment of the debt, and the County is released from any liability for repayment. Industrial revenue bonds outstanding as of December 31, 2014 totaled $3,457,620. 63 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2014, was as follows, the balances, additions and reductions are listed by the funds where the liability is accrued and liquidated. Compensated absences General Fund Public Works Social Services Public Health Human Services Total governmental Beginning Balance Additions $ 1,801,163 $ 505,265 878,893 205,481 178,017 Reductions 322,487 $ 173,190 107,273 29,521 40,119 Ending Due Within Balance One Year 99,059 $ 2,024,591 $ 8,437 670,018 84,903 901,263 7,952 227,050 36,644 181,492 94,302 35,390 58,180 8,259 37,339 $ 3,568,819 $ 672,590 $ 236,995 $ 4,004,414 $ 233,470 Note 9 - Weld County Retirement Plan: Plan Description: The Weld County Retirement Plan (Plan) is a single -employer, defined benefit pension plan administered by a five - member retirement board. The plan provides retirement, disability and death benefits to plan members and beneficiaries at the discretion of the Retirement Board. The Retirement Board and the Board of Commissioners maintain the authority to establish and amend benefit provisions of the Plan. The Retirement Board issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by contacting the County of Weld, State of Colorado. Funding Policy: The contribution requirements of plan members and the County are established and maintained by the Board of Commissioners. Plan members are required to contribute 10.75% of their annual covered payroll. The County is required to contribute at an actuarially determined rate; the current rate is 10,75% of annual covered payroll. All pension oblogation (asset) activity is recorded in the County's general fund 64 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Annual Pension Cost and Net Pension Obligation: The County's annual pension cost and net pension obligation to the plan in the current year were: . Annual Required Contributions Interest on net pension obligation Adjustment to Annual Required Contribution Annual Pension Cost Contributions made increase in net pension obligation Net pension obligation (asset) beginning of year Net pension obligation (asset) end of year $ 5,798,248 448,627 (350,069) 5,896,806 (7,179,487) (1,282,681) 5,607,840 $ 4,325,159 The annual required contribution for the current year was determined as part of the January 1, 2014 actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 8% investment rate of return (net of administrative expenses) and (b) projected salary increases ranging from 5.3% to 8.5% per year. Both (a) and (b) included an inflation component of 2.8%. The actuarial value of assets was determined using techniques that smooth the effects of shorttertn volatility in the market value of investments over a five-year period. The unfunded actuarial liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at January 1, 2014, was 30 years. Pension obligations are paid by County funds in proportion to the salary incurred by each fiend. Three -Year Trend Information: Fiscal Year Ended December 31, 2012 December 31, 2013 December 31, 2014 Funding Status: Actuarial Valuation Date Actuarial Value of Assets (a) 1/1/14 $156,669,705 Annual Pension Cost (APC) 6,127,203 6,576,112 5,896,806 Percentage of APC Contributed 97.4% 94.8% 121.75% Actuarial Unfunded Accrued AAL (UAAL) Liability (b -a) (AAL) Entry Age (b) $221,680,478 65,010,773 Funded Ratio (a/b) Net Pension Obligation (Asset) 5,265,873 5,607,840 4,325,159 Covered Payroll (c) 70.67 % $ 61,704,127 UAAL as a Percentage of Covered Payroll [b -a /c] 105.36 % COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 A schedule of funding progress can be found in the RSl section following the notes to the financial statements. The schedule of funding progress presents information on the funding process and its increases and decreases over time. Based on several months of study and review of available plan design options, the Retirement Board revised the provisions of the Weld County Retirement Plan in order to reduce the future volatility of the plan's funded status and help to secure the financial future of the Plan. The majority of the revisions only impact new members hired on or after January 1, 2010. The provisions of the revised plan provide a variable annuity with members accruing 1.9% of their pay each year toward their age 65 annuity. The benefit is adjusted each March based on the Plan's asset return under or over 5% for the prior year. Early retirement options continue to be available under the revised plan. The interest rate credited to contributions after January 1, 2010 is 3% per year. Note 10 - Other Post Employment Benefits: Plan Description: Weld County Other Post Employment Benefits Plan (OPEB Plan) is a singleemployer defined benefit healthcare plan administered by Weld County that provides medical, dental, and vision insurance benefits to eligible retirees and their spouses_ The OPEB Plan was created by a Board of Weld County Commissioners resolution on November 30, 1998, and amended December 16, 2002 and September 21, 2005. The OPEB Plan provides the same health, dental, and vision plan as offered Weld County employees and at the same cost. The program is not part of the Weld County Retirement Plan and is not a vested benefit or right, but it is a plan that can be amended or stopped at any time by the Board of Weld County Commissioners for any reason, and no separate financial statements are prepared. The program is only available to Weld County employees hired prior to October 1, 2005. From December 16, 1998, to December 31, 2008, a retiree who retires from employment with Weld County after ten years of service, or was an elected official of Weld County for at least one full four year term, who has attained the age of 55 years and is drawing benefits from the Weld County Retirement Plan is eligible to continue health, dental, and vision coverage until age 65. After January 1, 2009, an employee must have attained age 57 and have 15 years of service to be eligible. From 2009 until 2014 the required age attainment and years of service are each increased by one year annually, so effective January 2014 an employee must have attained age 62 and have 20 years of service to be eligible, unless the employee attains age 55 and has 30 years experience or has attained age 55 and has served as a Weld County elected official for two full terms. Coverage ends in all cases at age 65. The Board of Weld County Commissioners on September 15, 2008, decided by resolution that the current program will be stopped January 1, 2009, except for those employees born prior to January 1, 1957, or any employee born on or prior to December 31, 1958, who will have 30 years of service prior to reaching age 62. Employees meeting these criteria will be grandfathered into the current plan and will remain eligible for continued benefits under the retiree health insurance program adopted December 16, 2002. An employee meeting the above criteria to be eligible for the grandfathered plan the employee and/or dependents, if applicable, must have been enrolled as of January 1, 2008, in the Weld County health insurance plan. Employees and/or dependents enrolled in the Weld County health insurance plan after January 1, 2008, are not eligible for the grandfathered plan. On July 19, 2010, the Board of Weld County Commissioners terminated the program effective June 30, 2012, for all eligible employees that had not retired or signed an agreement for continuation of health insurance coverage as of October 1, 2010. 66 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Funding Policy: The contribution requirements of plan members and Weld County are established and may be amended by the Board of Weld County Commissioners annually. The required contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2014, the county contributed $0 to the plan. Plan members receiving benefits contributed $94,185, or approximately 100% percent of the total premiums, through their required contribution ranging from $129 to $157 per month for retiree -only coverage and between $245 to $338 for retiree and spouse coverage. Each of these rates saw a 7.5% increase in 2014. The OPEB Plan assets are deposited in the Weld County OPEB Plan Trust Fund. The employer's contributions to the trust fund arc irrevocable, the assets of the trust are dedicated to providing benefits to retirees and their beneficiaries, and the assets are legally protected from the employer's creditors. Annual OPEB Cost and OPEB Obligation: Prior to January 1, 2007, the OPEB Plan was funded on a pay as you go basis. Beginning January 1, 2007, the county's annual other post employment benefit (OPER) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The primary assumption for the ARC calculation is the 4% discount rate. The assumptions currently include an annual healthcare cost trend rate of 11%. Liabilities are computed using the projected unit credit method. When applicable, the unfunded actuarial accrued liability has been amortized over a closed 25 year period. GASB's standard allows for the use of the Alternative Measurement Method to compute OPEB cost and obligations for plans with less than 100 members. The Alternative Measurement Method is a calculation of the OPEB cost and obligation using a simplified approach that does not require the engagement of an actuary. The Weld County Retiree Health OPEB plan had 58 members in 2014 and therefore calculations for the Weld County Retiree Health OPEB have been completed in accordance with GASB 45 Alternative Measurement Method using the projected unit credits methodology. Management considers the new calculation method to be preferable as an outside actuary is no longer required to be engaged, resulting in a cost savings to the County. Marital and dependency status is based on current status of covered participants. Other significant assumptions are made by County management based on knowledge of applicable costs affecting the County. The following shows the components of the County's annual OPER cost for the year, the amount actually contributed to the plan, and changes in the county's net OPEB obligation to Weld County: COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Level Dollar Amortization Calculation on Annual OPEB cost under Projected Unit Credit Method onDecember 31, 2014 Anual Required Contribution (ARC) Adjustment to the ARC Interest Earned on Net OPEB Asset 2014 Net Annual OPEB Cost County Contributions Increase in net OPEB obligation (asset) Beginning OPEB obligation (asset) Ending OPEB Obligation (asset) 577,738 (847,758) (15,550) (285,570) (285,570) (366,884) $ (652,454) There is no unfunded actuarial accrued liability (UAAL) at the end of the year. A surplus of $652,454 exists. Covered Participants as of January 1, 2015 Retired Employees Spouses of Retired Employees Three -Year Trend Information: Fiscal Year End December 31, 2012 December 31, 2013 December 31, 2014 Annual OPEB Cost 713,965 51,444 (285,570) 40 5 45 Percentage of Annual OPEB Cost Contributed 100.0 % 188.0 % 100.0 % Net OPEB Asset $ (299,725) $ (366,884) $ (652,454) Prior to January 1, 2007, the OPEB Plan was on a pay as you go funding basis. January 1, 2007, was the first time an actuarial accrued liability was calculated to determine the net OPEB obligation. The OPEB obligation as of December 31, 2014 was $1,735,238 there were $2,387,693 in assets on December 31, 2014 for a funding excess of ($652,455). All related pension obligation (assets) are recorded in the County's General fund_ COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Funded Status and Funding Progress. The funded status of the plan as of December 31, 2012, was as follows: Actuarial Accrued Liability (AAL) $ 1,735,238 Actuarial value of plan assets $ 2,387,693 Funded Excess $ (652,455) Funded ratio (actuarial value of plan assets/AAL) 137.60 % No active employees are covered by the plan. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress presents multiyear trend information about whether the actuarial value of assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The actuarial calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and members to that point and reflect a long-term perspective. The Weld County OPEB Plan Assets are accounted for in the Weld County OPEB Plan Trust Fund. An IRC Section 115 Trust has been established for the Weld County OPEB Plan Trust, Note 11- Commitments and Contingencies: Commitments As of December 31, 2014 there were encumbrances carried forward to 2015 of $1,581,113 in the General fund, consisting of $296,433 for general purchases, $363,097 for engineering designs, S221,596 for oil and gas audits, $699,987 for County wide communication and general goverment computer system maintance and support.. The Public Works fund carried forward $19,654,044 for road construction projects which includes 519,391,107 specifically for the Weld County Parkway. In the capital expenditures fund year-end projects under construction included $211,219 for building improvements, $50,215 for a grader shed complex, and $460,872 for remodeling projects for the Weld Plaza buildings. Note 12 - Public Trustee: Pursuant to an act of the Colorado General Assembly, the Weld County Public Trustee is to be deemed an agency of the County for the purpose of financial reporting. Related activity has been reported in the General Agency Fund, with the following activity identified strictly for the office of the Public Trustee as of and for the year ended December 31, 2014 Assets Liabilities Net Position Revenues Expenses $ 386,640 7,976 378,664 351,178 377,000 The Public Trustee started a retirement plan in December 2003. The plan is a defined contribution plan under Internal Revenue Code section 401(K). The employer will match employee contributions up to 8% of eligible compensation. 69 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Note 13 - Non -Cash Activity in Social Services Fund Schedule of EBT Authorizations, Warrant Expenditures and Total Expenditures for the Year Ended December 31, 2014 A B C D E Program County EBT Authorizations County Share of Authorizations Total Refunds and Expenditures by County Warrant or Accrual County EBT Authorizations plus Expenditures by County Warrant (Col. A + Col. C) Total Expenditures Col. B + Col. C Old Age Pension 4,281,622 6,745 78,176 4,359,798 84,921 Low -Income Energy Assistance Program 1,370,336 - 137,949 1,508,285 "137,949 Temporary Assistance for Needy Families 4,064,500 679,648 2,655,916 6,720,416 3,335,564 Administration 3,000 600 9,220,115 9,223,115 9,220,715 Trails/Child Welfare 7,482,038 1,504,535 11,325,727 18,807,765 12,830,262 Core Services 1,462,592 251,408 728,464 2,191,056 979,872 Aid to the Needy Disabled 932,984 152,581 1,584 934,568 154,165 IV -D Administration - - 3,097,385 3,097,385 3,097,385 CHATS/Child Care 4,308,399 417,441 528,999 4,837,398 946,440 General Assistance - - 316,158 316,158 316,158 Subtotal 23,905,471 3,012,958 28,090,473 51,995,944 31,"103,431 Food Assistance 36,461,874 - (190) 36,461,684 (190) Grand Total 60,367,345 3,012,958 28,090,283 88,457,628 31,103,241 A. Welfare payment authorized by the Weld County Department of Social Services. These County authorizations are paid by the Colorado Department of Human Services by Quest debit cards or by electronic benefits transfer (EBT) B. County share of EBT authorizations. These amounts are settled monthly by a reduction of State cash advances to the County. C. Expenditures made by county warrants or other county payment methods. D. This represents the total cost of the welfare programs that are administered by Weld County. E. This total matches the expenditures on the Social Services Fund — Statement of Revenues, Expenditures and Changes in Fund Balances. 70 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Note 14 - Recent Pronouncements: In February 2012 the Governmental Accounting Standards Board issued GASB Statement No.68 Accounting and Financial Reporting for Pensions, which replaces GASB No.27, Accounting for Pensions by State and Local Government Employers, for the most government pensions. Statement No.68 requires governments providing defined benefit pensions to recognize their long term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual cost of the pension benefits. The Statement also enhances accountability and transparency through revised and new note disclosures and required supplementary information (RSI). GASB Statement No.68 is effective for years beginning after June 15, 2014 with effective changes made to comply with the statement reported as adjustments to prior periods. The effect that the adaption of GASB No. 68 will have on the County's financial statements has not been determined. In February 2015 the Governmental Accounting Standards Board issued GASB Statement No.72 Fair Value Measurement and Application. This statement provides final guidance on the accounting and financial reporting issues related to fair value measurements primary applicable to investments made by state and local governments. The guidance: 1) defines fair value and describes how it should be measured; 2) identifies the assets and liabilities that should be measured at fair value; and 3) identifies the fair value information that should be disclosed in the notes to the financial statements. GASB Statement No.72 is effective for years beginning after June 15, 2015 with effective changes made to comply with the statement reported as adjustments to prior periods. The effect that the adaption of GASB No. 72 will have on the County's financial statements has not been determined 71 72 Required Supplementary Information Other Than MD&A INFORMATION COUNTY OF WELD STATE OF COLORADO Schedule of Funding Progress - Pension Trust Year Ended December 31, 2014 Schedule of Funding Progress - Retirement Plan Actuarial Valuation Date 1/1/08 1/1/09 1/1/10 1/1/11 1/1/2012 1/1/2013 1/1/2014 Actuarial Value of Assets (a) $ 125,879,138 $ 112,079,550 131,288,037 134,917,364 135,173,969 138,911,110 $ 156,669,705 $ Year Ended December 31 2006 2007 2008 2009 2010 2011 2012 2013 2014 Acturial Accrued Liability (AAL) Entry Age (b) 167,011,647 $ 176,927,890 186,015,431 193,269,672 203,114,167 212,186,030 221,680,478 $ Unfunded Funded AAL (UAAL) Ratio (b -a) (a/b) 41432,509 64,848,340 54,727,394 58,352,308 67,940,198 73,274,920 65,01 0,773 Covered Payroll (c) 75.4 % $ 49,967,777 63.3 % 53,988,779 70.6 % 53,484,492 69.8 % 53,415,982 66.6 % 55,871,701 65.5 % 55,833,201 70.67 % $ 61,704,127 Schedule of Employer Contributions - Retirement Plan Annual Required Contribution(1) $ 4,236,858 $ 4,408,097 $ 4,928,519 $ 7,087,011 $ 5,417,362 $ 6,013,818 $ 6,138,685 $ 6,505,700 $ 5,798,248 ' 1>Required contribution at beginning of year. Actual Contribution $ 3,205,422 $ 3,804,640 $ 4,184,885 $ 4,962,224 $ 4,885,660 $ 6,706,758 $ 5,970,039 $ 6,234,145 $ 7,179,487 Percentage Contributed 75.7 % 86.3 % 84.9 % 70.0 % 90.2 % 111.5 % 97.3 % 95.8 % 123.82 % UAAL as a percentage of covered payroll Lb-a)/c] 82.3 % 120.1 % 102.3 % 109.2 % 121.6 % 131.2 % 105.40 % COUNTY OF WELD STATE OF COLORADO Schedule of Funding Progress - Other Post Employment Benefits Year Ended December 31, 2014 Schedule of Funding Progress - Other Post Employment benefits Excess Actuarial Actuarial Acturial Funding Funded Ratio Valuation Value of Accrued AAL (UAAL) (a/b) Date Assets Liability (b -a) (a) (AAL) Entry Age (b) 1/1/11 $ 2,550,854 $ 8,346,023 $ 5,795,169 30,6 % 1/1/12 $ 2,784,877 $ 8,346,023 $ 5,561,146 33.4 % 1/1/13 $ 3,521,997 $ 3,222,272 $ (299,725) 109.3 % 1/1/14 $ 2,918,273 $ 2,551,388 $ (366,885) 114.4 % 1/1/15 $ 2,387,693 $ 1,735,238 $ (652,455) 137.6 % Schedule of Employer Contributions — Other Post Employment Benefits Annual Year Ended Required Actual Percentage December 31 OPEB Cost Contribution Contributed 2012 $ 713,965 $ 713,965 100.0 % 2013 51,444 96,867 188.3 % 2014 $ (285,570) $ (285,570) 100.0 % ('Required contribution at beginning of year. COUNTY OF WELD STATE OF COLORADO Required Supplementary Infonnation Modified Approach for Infrastructure Assets Weld County prepares an annual gravel road plan. In doing this each of the sections of gravel roads has been evaluated by supervisors. They use the State guidelines as out lined in Section 43 -2 -120(5)(a -b), C,R.S, 1973, which is stated below. Since gravel roads condition can change quickly based on weather conditions the road plan may have to be modified to take care of such problems. Therefore, an official road maintenance system is difficult to put in place. It is the County's policy to maintain the roads in fair or better condition. The County's gravel plan details the replacement and maintenance schedule required for the gravel roads, by segment, under ideal weather conditions based on traffic and location. The day to day conditions of the gravel roads is continually monitored by the County's Motor Grader division whose sole responsibility is to maintain the condition of the gravel roads, the following table details the condition assessment in total miles and percentage reported at the end of the last three fiscal periods. 2014 2013 2012 Condition Miles % of Total Miles % of Total Miles % of Total Good 1,786 80.3% 1,784 79.6% 1,821 80.5% Fair 372 16.7% 383 17.1% 377 16.7% Poor 65 2,9% 74 3,3% 64 2,8% Comparison of Estimated -to -Actual Maintenance/Preservation 2010 2011 2012 2013 2014 2015 Estimated $ 2,915,000 $ 3,160,000 $ 3,132,000 $ 3,360,875 $ 2,696,700 $ 3,703,900 Actual $ 3,046,576 $ 2,683,326 $ 3,696,246 $ 3,131,555 $ 3,067,408 Gravel Roads - Surface Condition Rating Criteria Section 43-2-120 (5)(a -b), C.R.S. 1973, gives the following guidelines pertaining to the condition criteria on gravel roads. Good Surface Condition $ There is adequate width for safe passage of large vehicles. $ Graded to a uniform cross-section, having a crown and ditches to provide good drainage. $ The surface is smooth with no washboards, rutting or soft areas; vehicles can safely travel at the posted speed limit. $ There is adequate gravel uniformly spread across the surface. $ During periods of wet weather, roads will support traffic. Fair Surface Conditions $ Adequate width for safe passage of cars and pickup trucks. $ Cross-section may vary; the crown is not consistent; ditches and drainage are not adequate. $ The surface has occasional washboards and ruts but irregularities do not interfere with safe vehicle operation at the speed limit, $ Gravel is present, but lacking in the wheel paths or in short stretches. $ During periods of wet weather, puddles develop; the road is slippery but will support normal traffic. Poor Surface Condition $ Two cars cannot safely pass. $ Cross-section varies. There is no crown or ditches, and water does not drain from the road. $ The surface has washboards, ruts, soft areas; vehicles must slow to less than the speed limit. $ Gravel is sparse or does not exist, $ During periods of wet weather, cars cannot safely travel. 76 COUNTY OF WELD STATE OF COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal Year Ended December 31, 2014 Budgeted - GA AP Basis REVENUES Taxes: General property taxes Tobacco products Penalties & interest Total Taxes Licenses and Permits Liquor licenses Planning permits Building permits Electrical permits Total Licenses and Permits Intergovernmental: Federal grants Payment in lieu of taxes State grants Other governmental units Cities and towns Total Intergovernmental Charges for Service: Plan checking fees Charges for services Sale of supplies Parking Total Charges for Service Fines and Forfeitures: Property forfeitures/evidence Fines (drunk drivers) Total Fines and Forfeitures Miscellaneous: Miscellaneous Interest Rents from buildings Total Miscellaneous Original Final Actual Variance $ 82,684,668 $ 82,684,668 $ 82,468,974 $ 150,000 210,000 223,582 48,401 _ 82,834,668 82,894,668 82,740,957 6,000 375,000 1,200,000 400,000 6,000 570,000 3,100,000 1,000,000 1,981,000 4,676,000 2,000 3,354,784 524,940 283,040 2,401,100 2,000 3,925,016 524,940 313,040 4,164,764 7,166,096 500,000 6,012,249 120,500 23,500 1,400,000 6,715,653 120,500 23,500 6,656,249 8,259,653 304,500 304,500 304,500 304,500 2,081,713 1,100,000 524,302 3,510,041 1,100,000 524,302 $ 3,706,015 $ 5,134,343 6,908 581,012 3,247,180 1,038,183 4,873,283 1,846,040 4,141,708 1,843,500 288,298 8,119,546 1,481,440 5,550,147 114,693 22,098 7,168,378 107,976 224,428 332,404 4,210,628 1,249,931 539,362 (215,694) 13,582 48,401 (153,711) 908 11,012 147,180 38,183 197,283 (555,060) (2,000) 216,692 1,318,560 (24,742) 953,450 81,440 (1,165,506) (5,807) (1,402) 1,091,275) 107,976 (80,072) 27,904 700,587 149,931 15,060 $ 5,999,921 $ 865,578 77 COUNTY OF WELD STATE OF COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal Year Ended December 31, 2014 Budgeted - GAAP Basis REVENUES (CONTINUED) Fees: Fee account Treasurer's fees Cable fees Assessor's fees Total Fees Total Revenues EXPENDITURES General Government Office Of the Board County Attorney Public Trustee Planning and zoning Clerk to the Board County Clerk Elections and registrations Motor Vehicle County Treasurer County Assesor Maintenance of buildings/gounds Weld Plaza County Council District Attorney Juvenile Diversion Adult Diversion Victim Assitance Financial administration General accounting Purchasing Personnel Geographical Information Systems Computer Services Inovation & Technology Project Print and Supply Smart Energy Project Total General Government (CONTINUED) Original Final $ 9,748,250 35,000 52,000 40,000 Actual $ 10,234,740 $ 35,000 52,000 40,000 Variance 10,472,197 $ 22,730 68,097 55,595 237,457 (12,270) 16,097 15,595 9,875,250 10,361,740 10,618,619 256,879 109,522,446 118,797,000 119,853,108 1,056,108 941,170 941,170 885,926 55,244 789,195 923,195 918,617 4,578 - 3,000 2,739 261 1,767,495 2,017,095 1,772,780 244,315 314,224 398,224 405,553 (7,329) 953,181 953,181 896,744 56,437 1,527,771 1,352,771 1,022,877 329,894 2,261,230 2,426,230 2,439,605 (13,375) 924,759 949,759 772,045 177,714 2,688,567 3,264,267 2,760,056 504,211 6,099,343 6,419,343 6,003,326 416,017 14,325 (14,325) 47,736 47,736 13,153 34,583 5,191,248 5,309,248 5,132,277 176,971 99,502 158,752 150,972 7,780 64,953 71,953 70,462 1,491 696,666 726,666 1,341,552 (614,886) 560,369 410,369 361,014 49,355 708,985 1,158,685 1,121,201 37,484 255,923 255,923 253,940 1,983 952,240 1,173,791 1,045,412 128,379 254,599 286,599 184,849 101,750 3,575,442 4,411,442 3,770,728 640,714 2,000,000 200,000 (6,708) 206,708 365,266 387,266 386,084 1,182 1,290,605 1,290,605 413,216 877,389 $ 34,330,469 $ 35,537,270 $ 32,132,745 $ 3,404,525 78 COUNTY OF WELD STATE OF COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal Year Ended December 31, 2014 Budgeted - GAAP Basis EXPENDITURES (CONTINUED) Public Safety Sheriff administration Crime control and investigation Traffic Control Municipal Service Contracts Task Force Regional Forensic Laboratory Communication Services Communication System Development Crimial justice Justice Services County Coroner Correctional Administration Community Corrections Building Inspections Office Of Emergency Management Waste Water Animal Control Pest/weed Control Victim advocates Total Public Safety Public Works: General Engineering Extension Veterans Office Total Public Works Public Health and Welfare: Mental Health Developmentally Disabled Seniors Program Economic Development A Kid's Place Total Public Health and Welfare Culture and Recreation: Missle Site Park Parks and Trails County Fair Total Culture and Recreation Original Final Actual Variance $ 2,055,306 $ 2,080,306 $ 2,070,263 $ 10,043 7,557,046 7,697,046 8,086,281 (389,235) 1,087,374 1,132,374 1,069,958 62,416 914,257 1,234,257 1,205,023 29,234 112,144 173,144 199,995 (26,851) 325,343 410,343 409,947 396 7,262,754 6,402,754 5,166,442 1,236,312 1,350 26,350 29,088 (2,738) 1,211,379 2,336,432 1,885,883 450,549 622,120 768,120 598,292 169,828 843,361 899,861 893,690 6,171 24,054,824 24,579,824 24,400,662 179,162 2,669,055 2,669,055 2,991,973 (322,918) 1,159,889 1,3 19,589 1,275,127 44,462 298,054 322,054 304,277 17,777 10,000 10,000 9,141 859 301,081 313,081 310,348 2,733 811,935 845,935 860,867 (14,932) 162,147 162,147 130,249 31,898 51,459,419 53,382,672 51,897,506 1,485,166 2,5 13,099 335,432 82,795 3,483,099 353,432 87,795 2,639,570 608,356 82,693 2,931,326 3,924,326 3,330,619 203,225 38,225 14,250 144,700 7,942 203,225 38,225 14,250 1,933,700 7,942 408,342 2,197,342 86,292 29,000 106,680 100,292 29,000 141,180 172,547 39,206 14,250 1,834,353 7,942 2,068,298 75,577 29,000 1,284,778 $ 221,972 $ 270,472 $ 1,389,355 843,529 (254,924) 5,102 593,707 30,678 (981) 99,347 129,044 24,715 (1,143,598) $ (1,1 18,883) 79 COUNTY OF WELD STATE OF COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal Year Ended December 31, 2014 Budgeted - GAAP Basis EXPENDITURES (CONTINUED) Miscellaneous: Other Ref nd Or Prior Years Benefit Building Rents Total Miscellaneous Capital Outlay: Capital Expenditures Total Expenditures Other Financing Sources (Use) Transfers - In: Non -Departmental Transfers - Out: Appropriation Grants -In -Aid Total Other Financing Source (uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year Original Final $ 4,011,486 10,000,000 92,990 14,104,476 $ 5,366,486 10,000,000 92,990 15,459,476 2,932,322 7,179,822 Actual Variance $ 5,226,245 $ 140,241 10,000,000 29,176 63,814 15,255,421 204,055 4,673,165 2,506,657 106,388,326 117,951,380 110,747,109 7,204,271 85,000 3,886,814 85,000 7,286,814 (3,801,814) (7,201,814) (667,694) 21,574,510 (6,356,194) 21,574,510 85,000 7,286,814 (7,201,814) 1,904,185 8,260,379 21,574,510 $ 20,906,816 $ 15,218,316 $ 23,478,695 $ 8,260,379 80 81 COUNTY OF WELD STATE OF COLORADO Public Works Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended December 31, 2014 Budget - GAAP Basis REVENUES: Taxes: General property taxes Severance tax Specific ownership taxes Penalties & interest Total Taxes Licenses and Permits Moving Permits Intergovernmental: Grazing Act Payment in lieu of taxes Grants Motor Vehicle Registrations Highway user Tax fiord Total Intergovernmental Charges for Services: Charges for services Miscellaneous: Earnings on Deposits Special Assesment Royalties Miscellaneous Total Miscellaneous Fees: Fees Total Revenues Original Final Actual $ 11,500,000 $ 11,500,000 $ 11,466,714 2,000,000 2,000,000 4,126,947 7,300,000 7,300,000 10,027,341 6,738 20,800,000 20,800,000 25,627,740 500,000 500,000 70,000 70,000 330,000 330,000 6,298,235 10,298,235 330,000 330,000 9,550,000 9,550,000 16,578,235 20,578,235 5,150,000 22,378,964 3,800,000 4,862,000 8,950,000 27,240,964 46,828,235 69,1 19,199 561,063 229,581 41,825 4,394,942 349,616 9,933,921 14,949,885 2,099,273 45,546 3,333 31,503,068 2,451,431 34,003,378 1,381,800 78,623,139 Variance $ (33,286) 2,126,947 2,727,341 6,738 4,827,740 61,063 159,581 (288,175) (5,903,293) 19,616 383,921 (5,628,350) 2,099,273 45,546 3,333 9,124,104 (2,410,569) 6,762,414 1,381,800 9,503,940 82 COUNTY OF WELD STATE OF COLORADO Public Works Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended December 31, 2014 Budget - GAAP Basis EXPENDITURES Public Works Bridge Construction Maintenance of Condition Maintenance of Support Trucking Dividsion Mining Division Administration Pavement Management Other Public Works Total Public Works Intergovernmental: Grants-in-aid to cities/towns Capital Expenditures Total Expenditures Other Financing Sources (Uses) Transfers - In: Contingent Fund Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balance at Beginning of Year Fund Balance at End of Year Original Final Actual 5,187,481 5,690,481 4,806,269 6,895,878 7,528,378 6,847,056 1,539,931 1,664,931 1,473,320 4,497,244 5,030,744 4,726,693 2,482,166 3,402,630 2,293,862 752,692 787,692 911,443 6,686,474 7,986,474 7,234,916 29,750,930 52,927,930 26,24"1,431 57,792,796 85,019,260 54,534,990 1,908,056 1,958,056 15,000 59,700,852 86,992,316 5,000,000 5,000,000 (12,872,617) 52,320,790 (12,873,117) 52,320,790 $ 39,448,173 $ 39,447,673 1,914,863 451,343 56,901,196 5,000,000 5,000,000 26,721,943 52,320,790 $ 79,042,733 Variance 884,212 681,322 191,611 304,051 1,108,768 (123,751) 751,558 26,686,499 30,484,270 43,193 (436,343) 30,091,120 39,595,060 $ 39,595,060 83 COUNTY OF WELD STATE OF COLORADO Social Services Fund Schedule of Revenues Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended December 31, 2014 Budget - GAAP Basis REVENUES Taxes: General property taxes Penalties & interest Total Taxes Intergovernmental: Welfare Total Revenues EXPENDITURES Public Health and Welfare: Administration Administrative - IV -D Food Stamps Other Programs General Assistance TANF AND - State Child Welfare Day Care (CONTINUED) Original Final Actual Variance $ 8,438,837 $ 8,438,837 $ 8,415,967 $ - - 4,829 8,438,837 8,438,837 21,205,333 24,357,333 29,644,170 32,796,170 8,430,000 9,940,000 2,915,000 3,086,000 361,000 586,000 20,000 20,000 3,015,000 4,047,000 165,000 165,000 13,350,000 13,350,000 969,000 969,000 (22,870) 4,829 8,420,796 (18,041) 23,020,426 (1,336,907) 31,441,222 (1,354,948) 8,488,158 3,095,856 (190) 616,143 316,158 3,307,744 154,165 12,828,844 946,195 1,45 1,842 (9,856) 190 (30,143) (296,158) 739,256 10,835 521,156 22,805 84 COUNTY OF WELD STATE OF COLORADO Social Services Fund Schedule of Revenues Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended December 31, 2014 Budget - GAAP Basis EXPENDITURES(CONTIN UED): OAP -A Core Services Admistration - Leap Total Public Health and Welfare Capital Expenditures Total Expenditures Other Financing Sources Uses Transfers - in Total Other Financing Sources (Uses) Net Change in Budgetary Fund Balances Fund Balance at Beginning of Year Fund Balance at End of Year Original Final 121,000 828,000 319,268 121,000 1,042,000 319,268 Actual 84,921 979,872 137,949 Variance 36,079 62,128 181,319 30,493,268 33,645,268 30,955,815 2,689,453 147,426 (147,426) 30,493,268 33,645,268 31,103,241 2,542,027 31,361 31,361 31,361 31,361 (849,098) (849,098) 369,342 1,218,440 3,240,711 3,240,711 3,240,711 $ 2,391,613 $ 2,391,613 $ 3,610,053 $ 1,218,440 85 COUNTY OF WELD STATE OF COLORADO Human Services Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended December 31, 2014 Budget - GAAP Basis Original Final Actual Variance REVENUES Intergovernmental: Federal grants State grants Total Intergovernmental $ 5,316,106 $ 6,550,906 $ 6,550,399 $ (507) 2,"136,611 1,088,211 629,953 (458,258) 7,452,717 7,639,117 7,180,352 (458,765) Charges for Services: Charges for services 373,000 373,000 366,795 (6,205) Total Charges for Services 373,000 373,000 366,795 (6,205) Miscellaneous: Donations 150,000 150,000 138,755 (11,245) Total Miscellaneous 150,000 150,000 138,755 (11,245) Total Revenues 7,975,717 8,162,117 7,685,902 (476,215) EXPENDITURES Economic Assistance: Human resources general fund Job service Summer job hunt Employment first TANF WIA administration WIA adult programs WIA youth programs 10% Discretionary Grant WIA dislocated worker Human resources lab pool UI training program - - (5,156) 5,156 929,000 1,009,000 1,021,994 (12,994) 30,000 36,800 41,680 (4,880) 258,000 - 761,100 6,000 3,526 2,474 127,000 174,000 171,559 2,441 529,350 879,350 849,258 30,092 486,300 676,300 686,539 (10,239) 40,000 40,000 - 40,000 486,300 952,800 882,175 70,625 327,000 327,000 179,610 147,390 195,000 221,500 173,735 47,765 86 COUNTY OF WELD STATE OF COLORADO Human Services Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended December 31, 2014 Budget - GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED): One stop AAA administration OAA title I11 -B OAA title Ill -C1 congregate OAA title Ill -C2 OAA in home support Health services AAA elder abuse AAA ombudsman Single entry point Wellspring/Health fund Vale Grant AAA case management AAA state funds Part E family caregiver support CSBG Colorado Choice Transitions Total Economic Assistance Capital Outlay: OAA area agency Total Capital Outlay Total Expenditures Other Financing Sources (Uses): Transfers - In: OAA area agency Transfers out Social Services Total Other Financing Sources Net Change in Budgetary Fund Balances Fund Balance at Beginning of Year 190,000 - - 92,500 92,500 52,247 40,253 259,855 259,855 196,644 63,211 505,000 505,000 483,087 21,913 44,000 115,000 121,483 (6,483) 11,798 16,198 15,700 498 15,000 29,500 29,635 (135) 2,061 2,061 1,640 421 6,875 6,875 4,054 2,821 1,784,900 1,784,900 1,759,239 25,661 - - 2,468 (2,468) 12,000 12,000 10,819 1,181 - - 431 (431) 639,511 720,711 744,855 (24,144) 87,420 87,420 80,752 6,668 168,098 219,698 224,623 (4,925) 4,392 (4,392) 7,988,068 8,174,468 7,736,989 437,479 6,296 (6,296) 6,296 6,296 7,988,068 8,174,468 7,743,285 431,183 12,351 12,351 12,351 12,351 12,351 31,361 31,361 (19,010) (31,361) (76,393) (76,393) 835,285 835,285 835,285 Fund Balance at End of Year $ 835,285 $ 835,285 $ 758,892 $ (76,393) 87 COUNTY OF WELD STATE OF COLORADO Contingent Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended Year Ended December 31, 2014 Budgeted REVENUES Taxes: General property taxes Penalties & interest Total Taxes Original Final Actual Variance $ 5,000,000 $ 5,000,000 $ 4,986,287 $ 3,150 5,000,000 5,000,000 Total Revenues 5,000,000 5,000,000 EXPENDITURES Miscellaneous Total Expenditures Other Financing Sources (Uses) Transfers - Out Other Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year 10,000,000 10,000,000 10,000,000 10,000,000 (5,000,000) (5,000,000) 34,999,314 34,999,314 $ 29,999,314 $ 29,999,314 (13,713) 3,150 4,989,437 (10,563) 4,989,437 (10,563) - 10,000,000 10,000,000 5,000,000 5,000,000 (5,000,000) (5,000,000) (10,563) 4,989,437 34,999,314 $ 34,988,751 $ 4,989,437 88 Supplemental Information COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2014 NON -MAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds account for taxes or other earmarked revenue of the County that finances specified activities as required by law or administrative action. Conservation Trust Fund: The Conservation Trust Fund accounts for revenue received from the State of Colorado to be used for the acquisition, development and maintenance of new and existing conservation sites within Weld County. The funds are derived from the Colorado State Lottery. Public Health Fund: The Weld County Public Health Department provides health services to County residents. The fund reflects revenue and expenditures for health care, health education, health monitoring and other related activities. Solid Waste Fund: This fund accounts for revenue received from a surcharge on dumping fees at solid waste disposal sites for the purpose of combating environmental problems and for the further improvement and development of landfill sites within the County. Law Enforcement Authority Funds These funds accounts for the revenue of the law enforcement authority. The authority is a taxing unit created by the County to provide additional law enforcement services by the County Sheriff to residents in a developed unincorporated area of the County 89 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2014 PROPRIETARY FUNDS Enterprise Funds Enterprise funds account for operations that arc financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination or revenue earned, expenses incurred, and/or net income is appropriated for capital maintenance, public policy, management control, accountability or other purposes. Northern Colorado Regional Forensic Laboratory: This Fund accounts for the maintenance and opperation cost of the Northern Colorado Regional Forensic Laboratory. it is funded by rents paid by the participating agencies. Internal Service Funds Motor Vehicle Fund: This fund accounts for the revenue and costs generated by equipment and vehicles rented to various departments of the County. Health Insurance Fund: This fund accounts for the County's self -insured dental and vision coverage. Revenue is generated from contributions from the employees of the County. Disbursements are made after insured claims have been verified and approved. Insurance Fund: This fund accounts for all insurance costs for the County, except health insurance. This program is a combination of insured risks and protected self-insurance risks. Phone Services Fund: This fund accounts for all phone costs provided to the County and other outside agencies on a cost - reimbursement basis. 90 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2014 FIDUCIARY FUNDS Agency Funds Agency funds account for assets held by the County as an agent for individuals, private organizations and/or other governments. General Agency Fund: This fund accounts for all monies collected (principally tax collections) by the Weld County Treasurer for various other local governmental units within the County. Payroll Agency Fund: This fund accounts for the accumulation of County payrolls and related withholdings. Disbursements are made to the appropriate financial institutions through the payroll direct deposit system and the various vendors for the withholdings. Employee Flexible Spending: This fund accounts for Weld County's Section 125, voluntary tax-sheltered plan, which the County administers directly. Employee contributions to the plan are refunded upon submission of documentation for un-reimbursed claims. 91 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2014 COMPONENT UNITS Component units are tied to the County with some board control. They operate as a separate fund but the information is discretely presented. Housing Authority Fund: This fund works with all the low income citizens of Weld County to help with rent assistance or housing repair. E-9 1 1 Authority Fund: This fund operates under state statute, Article 11 of Title 29, C.R.S.. They are responsible for administering the operations of the 91 l emergency telephone service program in Weld County. 92 93 COUNTY OF WELD STATE OF COLORADO Combining Balance Sheet Non -Major Governmental Funds December 31, 2014 Conservation Trust Public Health Solid Waste ASSETS Cash and Investments Receivables (net of allowance for uncollectibles): Accounts Due From other County Funds Other Assets Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable Accrued Liabilites Unearned Revenues Total Liabilities Fund Balances: N onspendible Restricted Committed Total Fund Balances Total Liabilities and Fund Balances $ 378,607 $ 2,661,422 $ 1,906,751 1,080,600 136,841 276 1,526 $ 378,607 $ 3,743,824 $ 2,043,592 378,607 50,930 236,333 128,425 415,688 1,526 3,326,610 194 409 603 2,042,989 378,607 3,328,136 2,042,989 $ 378,607 $ 3,743,824 $ 2,043,592 94 Total Law Nonmajor Enforcement Governmental Authority Fund Funds $ - $ 4,946,780 1,217,441 276 1,526 $ 6,166,023 51,124 236,333 128,834 416,291 1,526 3,705,217 2,042,989 5,749,732 $ $ 6,166,023 95 COUNTY OF WELD STATE OF COLORADO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non -Major Governmental Funds For the fiscal year ended December 31, 2014 Conservation Trust Public Health Solid Waste REVENUES: Taxes: Taxes Intergovernmental Charges for Services Fines and Forfitures Miscellaneous Total Revenues EXPENDITURES: Public Safety Public Health and Welfare Culture and Recreation Capital Expenditures Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers - in Transfers - out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year $ - $ - $ 409,938 2,834,235 - 1,866,693 1,523,082 18,980 2,639 170,783 412,577 404,589 404,589 7,988 4,890,691 1,523,082 8,250,132 12,379 g,262,511 3,371,820) 4,441,746 120,591 120,591 1,402,491 1,052,283 4,441,746 (1,052,283) 7,988 1,069,926 370,619 2,258,210 $ 378,607 350,208 1,692,781 $ 3,328,136 $ 2,042,989 Total Law Nonmaj or Enforcement Governmental Authority Fund Funds $ 20,614 $ 20,614 - 3,244,173 - 3,389,775 18,980 173,422 20,614 6,846,964 20,614 141,205 8,250,132 404,589 12,379 20,614 8,808,305 - (1,961,341) 4,441,746 1,052,283 3,389,463 1,428,122 4,32 1,610 $ 5,749,732 97 COUNTY OF WELD STATE OF COLORADO Capital Expenditures Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted REVENUES General property taxes Penalties & interest Total Taxes Fees Earnings on Deposits Miscellaneous Total Revenues EXPENDITURES Capital Outlay: Buildings Total Expenditures Other Financing Sources (Uses) Transfers - In: General Fund Non -Departmental Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year Original Final Actual $ 8,250,000 $ 8,250,000 $ 8,250,000 100,000 300,000 8,250,000 100,000 300,000 8,650,000 8,650,000 10,066,608 15,466,608 10,066,608 15,466,608 400,000 400,000 (1,416,608) 18,816,143 (6,416,608) 18,816,143 $ 17,399,535 $ 12,399,535 Variance 8,227,119 $ 4,823 8,231,942 202,363 175,222 574,634 (22,881) 4,823 (18,058) 102,363 (124,778) 574,634 9,184,161 534,161 10,763,654 4,702,954 10,763,654 4,702,954 1,000,000 1,000,000 400,000 1,400,000 1,000,000 (179,493) 23,003,509 18,816,143 $ 18,636,650 $ 6,237,115 98 COUNTY OF WELD STATE OF COLORADO Conservation Trust Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted Original Final Actual Variance KLVENUES Intergovernmental: State Lottery Miscellaneous: Earnings on Deposits Total Revenues EXPENDITURES Culture and Recreation: Land Improvements Total Expenditures Net Change in Fund Balances Fund Balances at Beginning of Year $ 412,000 $ 412,000 $ 409,938 $ (2,062) 3,000 3,000 2,639 (361) 415,000 415,000 412,577 (2,423) 440,296 440,296 404,589 35,707 440,296 440,296 404,589 35,707 (25,296) (25,296) 7,988 33,284 370,619 370,619 370,619 Fund Balances at End of Year $ 345,323 $ 345,323 $ 378,607 $ 33,284 99 COUNTY OF WELD STATE OF COLORADO Public Health Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted REVENUES Intergovernmental: State grants Total Intergovernmental Charges for Services: Charges for services Total Charges for Services Miscellaneous: Fees and Fines Other Donations Total Miscellaneous Total Revenues EXPENDITURES Public Health and Welfare: Public Health Administration Health Education Nursing Environmental Health Public Health Preparedness Total Public Health and Welfare Capital Outlay: Capital Expenditures Total Expenditures Other Financing Sources (Uses): Transfers - In: N on -Departmental Total Other Financing Sources Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year Original Final Actual Variance $ 2,937,183 $ 2,937,183 $ 2,834,235 $ (102,948) 2,937,183 2,937,183 2,834,235 ("102,948) 1,510,169 1,510,169 1,866,693 356,524 1,510,169 1,510,169 1,866,693 356,524 5,000 6,374 25,550 5,000 6,374 25,550 36,924 36,924 18,980 151,160 19,623 13,980 144,786 (5,927) 189,763 152,839 4,484,276 4,484,276 4,890,691 406,415 180,000 1,373,338 4,271,488 2,796,984 290,714 180,000 1,373,338 4,271,488 2,904,384 290,714 8,912,524 191,156 1,166,070 3,880,949 2,761,933 250,024 (11,156) 207,268 390,539 142,451 40,690 9,019,924 8,250,132 769,792 13,498 13,498 8,926,022 12,379 1,119 9,033,422 8,262,511 770,911 567,283 4,441,746 4,441,746 567,283 4,441,746 4,441,746 (3,874,463) (107,400) 1,069,926 1,177,326 2,258,210 2,258,210 2,258,210 $ (1,616,253) $ 2,150,810 $ 3,328,136 $ 1,177,326 100 COUNTY OF WELD STATE OF COLORADO Solid Waste Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted REVENUES Land Fill Surcharges Total Revenues EXPENDITURES Miscellaneous: Solide Waste Total Expenditures Other Financing Sources (Uses) Transfers Out: General Fund Capital Fund Health Department Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year Original Final Actual Variance $ 900,000 $ 960,000 $ 1,523,082 $ 563,082 900,000 960,000 1,523,082 563,082 247,717 307,717 247,717 307,717 85,000 85,000 - 400,000 567,283 567,283 (652,283) (1,052,283) (400,000) 1,692,781 1,692,781 120,591 187,126 120,591 187,126 85,000 400,000 567,283 (1,052,283) 350,208 750,208 1,692,781 $ 1,692,781 $ 1,292,781 $ 2,042,989 $ 750,208 101 COUNTY OF WELD STATE OF COLORADO Bebec Draw Law Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes Specific ownership taxes Total Revenues EXPENDITURES Miscellaneous Total Expenditures Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year $ 11,075 $ 11,075 $ 11,075 $ 1,100 1,100 910 (190) 12,175 12,175 11,985 (190) 12,175 12,175 11,985 190 12,175 12,175 11,985 190 $ - $ - $ _ $ 102 COUNTY OF WELD STATE OF COLORADO Pioneer Community Law Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes Specific ownership taxes Penalties & interest Total Revenues $ 6,353 $ 6,353 $ 6,353 $ 100 100 536 - - 8 _ 6,453 6,453 6,897 436 x 444 EXPENDITURES Miscellaneous 6,453 6,453 6,897 (444) Total Expenditures 6,453 6,453 6,897 (444) Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year $ $ $ $ 103 COUNTY OF WELD STATE OF COLORADO South West Law Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted Original Final Actual Variance REVENUES Taxes General property taxes Penalties & interest Total Revenues $ 1,598 $ 1,598 $ 1,598 $ 30 30 134 104 1,628 1,628 1,732 104 EXPENDITURES Miscellaneous 1,628 1,628 1,732 (104) Total Expenditures 1,628 1,628 1,732 (104) Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year $ - $ - $ _ $ 104 COUNTY OF WELD STATE OF COLORADO Housing Authority Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted REVENUES Intergovernmental: Federal grants State grants Total Intergovernmental Miscellaneous: Earnings on Deposits Miscellaneous Total Miscellaneous Total Revenues EXPENDITURES Rent Assistance Supplies Depreciation Total Expenditures Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year Original Final Actual Variance $ - $ - $ - $ 2,549,309 2,549,309 2,614,740 2,549,309 2,549,309 2,614,740 2,549,309 2,549,309 2,319,314 2,319,314 232,013 232,013 2,551,327 2,551,327 (2,018) 8,671 33,872 42,543 2,657,283 65,431 65,431 8,671 33,872 42,543 107,974 2,470,038 (150,724) 335,832 (103,819) 1,053 (1,053) 2,806,923 (255,596) (2,018) (149,640) $ (2,018) $ 2,329,617 (2,018) $ 2,179,977 (147,622) 2,329,617 $ 2,181,995 105 COUNTY OF WELD STATE OF COLORADO E-91 1 Authority Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted REVENUES Miscellaneous: Interest Charges for services Total Revenue Expenditures Depreciation Purchased Services Supplies Other Total Expenditures Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year Blank Page Original Final Actual Variance $ 10,000 $ 10,000 $ 14,420 $ 4,420 2,250,000 2,250,000 2,335,328 85,328 2,260,000 2,260,000 2,349,748 89,748 413,842 1,322,805 523,353 413,842 1,322,805 523,353 2,388,656 2,260,000 4,648,656 - (2,388,656) 6,377,632 6,377,632 $ 6,377,632 $ 3,988,976 500,625 1,583,468 171,493 1,726,704 (86,783) (260,663) 351,860 661,952 3,982,290 666,366 (1,632,542) 756,114 6,377,632 $ 4,745,090 $ 756,114 106 107 The public report burden for this information collection is estimated to average 380 hours annually. Financial Planning 02101 Form # 350-050-36 LOCAL HIGHWAY FINANCE REPORT City or County: County YEAR ENDING : December 2014 This Information From The Records Of County of Weld: Prepared By: Barbara Connolly Phone: (970) 356-4000 X 4445 I. DISPOSITION OF HIGHWAY -USER ITEM 1. Total receipts available REVENUES AVAILABLE A. Local Motor -Fuel Taxes PURPOSES FOR LOCAL B. Local Motor -Vehicle Taxes HI. DISBURSEMENTS AND GOVERNMENT EXPENDITURE C. Receipts from D. Receipts from State Highway- Federal Highway User Taxes Administration FOR ROAD STREET PURPOSES 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for hi _hwa ur sses 111. RECEIPTS FOR ROAD AND STREET ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: I . Local highway -user taxes I . Capital outlay (from page 2) 14,204,026 a. Motor Fuel (from Item 1.A.5.) 2. Maintenance: 38,459,774 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) 2. General fund appropriations 5,000,000 a. Traffic control operations b. Snow and ice removal 990,413 3. Other local imposts (from page 2) 21,504,126 c. Other 420,678 4. Miscellaneous local receipts (from page 2) 38,042,181 d. Total (a. through c.) 141 1,09I 5. Transfers from toll facilities 4. General administration & miscellaneous 2,826,306 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 56,901,196 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes I. Bonds: d. Total (a. _ b. + c.) 0 a. Interest 7. Total (1 through 6) 64,546,307 b. Redemption B. Private Contributions c. Total (a. + b.) 0 C. Receipts from State government (from page 2) 2. Notes: 18,805,426 a. Interest D. Receipts from Federal Government (from page 2) b. Redemption 271,406 c. Total (a. + b.) 0 E. Total receipts (A.7 + B + C + D) IV. 83,623,139 LOCAL HIGHWAY (Show all entries 3. Total (1.c + 2.c) 0 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + 8.3 + C + D) 56,901,196 DEBT STATUS at par) Opening Debt Amount Issued Redemptions Closing Debt y A. Bonds Total 0 I . Bonds (Refunding Portion) B. Notes (Total) 0 V. LOCAL ROAD AND STREET FUND BALANCE A. Beginning Balance B. Total Receipts C. Total Disbursementd D. Ending Balance E. Reconciliation 52,320;790 83,623,139 56,901,196 I 79,042,733 (0) Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE 1 (Next Page) 2014 Local Highway Finance Report.xls 108 LOCAL HIGHWAY FINANCE REPORT STATE: Colorado YEAR ENf)TNG (mm/yy): December 2014 II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM AMOUNT ITEM AMOUNT A.3. Other local im osts: A.4. M . 11: i. 1 1 - i t, . a. Property Taxes and Assessments 11,476.785 a. Interest on investments 45,546 b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens c. Sale of Surplus Property 4. Licenses 1. Charges for Services 2,099,273 5. Specific Ownership &tor Other 10,027,341 g. Other Misc. Receipts 1,942,863 6. Total (1. through 5.) 10,027,341 h. Other 33,954,499 c. Total (a. + b.) 21,504,126 (Carry forward to a c 1) i. Total (a. throu_ h.) 38,042,181 (Can ' forward to ale 1) ITEM AMOUNT ITEM AMOUNT C. Recei I is from State Government D. Recei its from Federal Government 1. Hi hwa -user taxes 9,933,921 1. FHWA (from Item 1.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 229,581 a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations d. Other (Specify) - DOLA Grant 349,616 d. Federal Transit Admin e. U.S. Corps of Engineers e. Other (Specify) 8,521,889 f. Other Federal 41,825 I Total (a. through e.) 8,871,505 g. Total (a. through f.) 271,406 4. Total 1. + 2. - 3.t 18,805.426 3. Total 1. + 2 _ (Carry forward to page 1) Ill. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL A.1. Ca a ital. outla r: a. Right -Of -Way Costs ON NATIONAL HIGHWAY OFF NATTONAI_ HIGHWAY SYSTEM (b) 1,674,951 TOTAL. (c) 1,674351 SYSTEM (a) b. En_ineerin Costs c. Construction: (1). New Facilities 6,524.584 6,524,584 0 (2). Capacity Improvements 23,996 23,996 (3). System Preservation 5,980,494 5,980,494 (4). System Enhancement & Operation (5). Total Construction (1) + (2) + (3) + (4) 0 6,004.490 0 6,004,490 d. Total Ca ital Outla ines l.a. + 1.b. + 1.c.5 0 14,204,026 14,204,026 (Carry Forward to page I ) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 109 COUNTY OF WELD STATE OF COLORADO Combining Statement of Net Position Internal Service Funds December 31, 2014 ASSETS Current Assets: Cash and cash equivalents Receivables (net of allowances for uncollectables): Property taxes receivable Delinquent property taxes Accounts Inventory Other Assets Total current assets Fixed assets: Improvements other than buildings Construction in progress Buildings Machinery and Equipment Accumulated Depreciation Total Fixed Assets Total assets LIABILITIES, DEFERRED INFLOWS AND NET POSITION Current Liabilities Accounts Payable Accrued Liabilites Unearned Revenues Total Current Liabilities Deferred Inflows of Resources Property Taxes Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows Net Position Invested in capital assets Restricted for Insurance Claims Unrestricted Total net position Health Motor Vehicle Insurance Insurance $ 2,710,896 $ 11,242,500 $ 4,076,907 15,509 57,329 68,851 2,036,491 2,783,734 11,311,351 6,113,398 1,131,815 36,000 2,048,377 41,663,755 (24,492,525) 20,387,422 $ 23,171,156 $ 1 1,31 1,351 $ 6,1 13,398 $ 443,812 $ 65,118 $ 16,780 2,832,991 1,924,616 1,388,562 443,812 4,286,671 1,941,396 2,039,660 2,039,660 443,812 4,286,671 3,981,056 20,387,422 2,339,922 7,024,680 2,132,342 $ 22,727,344 $ 7,024,680 $ 2,132,342 Total Internal Phone Services Service Funds $ 1,352,607 $ 19,382,910 2,299 2,036,491 17,808 57,329 68,851 1,354,906 21,563,389 - 1,131,815 - 36,000 - 2,048,377 1,482,682 43,146,437 (1,162,853) (25,655,378) 319,829 20,707,251 $ 1,674,735 $ 42,270,640 $ 4,034 $ 529,744 22,752 4,780,359 1,388,562 26,786 6,698,665 2,039,660 2,039,660 26,786 8,738,325 319,829 20,707,251 9,157,022 1,328,120 3,668,042 $ 1,647,949 $ 33,532,315 111 COUNTY OF WELD STATE OF COLORADO Combining Statement of Revenues, Expenditures and Changes in Net Position Internal Service Funds For the fiscal year ended December 31, 2014 Operating revenues: Employer Contributions Charges for Services Total operating revenues Operating expenses: Personnel Services Supplies Purchased Services Insurance and Bonds Depreciation Other Claims Total operating expendituers Operating income (loss) Nonoperating Revenues (Expenses) Taxes Miscellaneous Earnings on investments Grants Gains (loss) on Disposal Judgement and Damages Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Transfers - in Changes in net position Total net position - beginning Total net position - ending Health Motor Vehicle Insurance Insurance $ - $ 17,395,414 $ 9,512,382 895 9,512,382 17,396,309 2,426,532 11,827 4,528,552 1,358,125 3,667,992 70,842 134,591 73,171 73,171 2,365 39,335 457,299 - 12,502,603 2,130,460 10,693,918 14,007,146 2,629,459 (1,181,536) 3,389,163 (2,556,288) 1,994,934 14,997 29,314 41,305 489,632 19,060 - 119,339 564,994 - 2,143,587 (616,542) 3,389,163 1,900,000 1,283,458 3,389,163 87,299 21,443,886 3,635,517 2,045,043 $ 22,727,344 $ 7,024,680 $ 2,132,342 (412,701) 500,000 Total Internal Phone Services Service Funds $ - $ 17,395,414 1,306,322 10,892,770 1,306,322 28,288,184 239,057 239,057 10,980 2,451,704 778,869 6,704,881 457,299 151,635 3,819,627 50,127 255,560 - 14,633,063 1,230,668 28,561,191 75,654 (273,007) 1,994,934 14,997 29,314 41,305 489,632 138,399 2,708,581 75,654 2,435,574 2,400,000 75,654 4,835,574 1,572,295 28,696,741 $ 1,647,949 $ 33,532,315 113 COUNTY OF WELD STATE OF COLORADO Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended December 31, 2014 Motor Vehicle Health Insurance Insurance Fund Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers Cash flows from internal customers Cash payments to external suppliers for goods and services Cash payments to internal suppliers for goods and services Cash payments to employees for services Judgements/damages/losses Miscellaneous revenues Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes Transfers/Advances Grants Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Proceeds from sale of capital assets financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments Net Increase (decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year 87,505 - 9,199,848 17,468,926 73,172 (6,826,591) (13,759,256) (2,211,583) (161,604) (18,712) 19,060 - 119,339 14,997 2,333,215 3,690,958 (2,019,072) 1,900,000 1,055,793 dm 1,994,445 500,000 2,955,793 - 2,494,445 (4,185,536) 618,287 (3,567,249) dm - - 29,314 1,721,759 3,690,958 504,687 989,137 7,551,542 3,572,220 Cash and Cash Equivalents at End of Year 2,710,896 Reconciliation of operating income to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided (used ) by operating activities: Depreciation expense Judgements/damages/losses Miscellaneous revenue Change in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in due from other funds (Increase) decrease in inventories (Increase) decrease in other assets Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in other liabilities Increase (decrease) in deferred revenue Total adjustments Net cash provided (used) by operating activities Noncash investing, capital, and financing activities: Contributions of capital assets from (to) government Loss on Disposal of Asset 11,242,500 4,076,907 (1,181,536) 3,389,163 (2,556,288) 3,667,992 19,060 - 119,339 14,997 - - 7,618 5,833 (4,911) 5,949 39,852 - (68,851) 403,543 (210,220) 26,863 (212,206) - 285,814 231,655 (30,497) - (5,115) 52,136 4,911 3,514,751 301,795 537,216 2,333,215 3,690,958 (2,019,072) 33,604 114 Phone Service Fund Total Internal Service Funds 41,392 1,282,861 (269,841) (736,288) (71,529) as as 246,595 1. 246,595 1,106,012 128,897 28,024,807 (23,067,271) (916,604) (71,529) 138,399 14,997 4,251,696 1,994,445 2,400,000 1,055,793 5,450,238 (4,185,536) 618,287 (3,567,249) 29,314 6,163,999 13,218,911 1,352,607 19,382,910 75,654 151,635 16,520 im (541) 3,327 (273,007) 3,819,627 138,399 14,997 25,060 5,949 39,852 334,692 (396,104) 520,796 (35,612) 57,047 170,941 4,524,703 246,595 4,251,696 33,604 115 COUNTY OF WELD STATE OF COLORADO Combining Statement of Changes in Assets and Liabilities Fiduciary Funds For the fiscal year ended Year Ended December 31, 2014 Balance Balance 1/1/2014 Additions Deductions 12/31/2014 GENERAL AGENCY FUND Assets: Cash and Investments Total Assets Liabilities: Accounts Payable Due to other Goverments Total Liabilities PAYROLL AGENCY FUND Assets: Cash and Investments Accounts Receivable (net of allowance for uncollectible): Total Assets Liabilities: Accounts Payable Total Liabilities EMPLOYEE FLEXIBLE SPENDING Assets: Cash and Investments Total Assets Liabilities: Accounts Payable Total Liabilities TOTAL - ALL AGENCY FUNDS Assets: Cash and Investments Accounts Receivable Total Assets Liabilities: Accounts payable Due to other governments Total Liabilities $ 5,162,763 $ 371,773,600 $ 367,966,793 $ 8,969,570 $ 5,162,763 $ 371,773,600 $ 367,966,793 $ 8,969,570 $ - $ 40,206 $ 40,206 $ 5,162,763 371,393,446 367,586,639 8,969,570 $ 5,162,763 $ 371,433,652 $ 367,626,845 $ 8,969,570 $ 206,146 $ 24,867,868 $ 24,931,677 $ 142,337 703 16,343 15,562 1,484 $ 206,849 $ 24,884,211 $ 24,947,239 $ 143,821 $ 206,849 $ 26,426,017 $ 26,489,045 $ 143,821 $ 206,849 $ 26,426,017 $ 26,489,045 $ 143,821 $ 51,039 $ 45,723 $ 51,039 $ 45,723 $ 51,039 $ 45,723 $ 51,039 $ 45,723 $ 51,039 $ 45,722 $ 51,038 $ 45,723 $ 51,039 $ 45,722 $ 51,038 $ 45,723 $ 5,419,948 $ 396,687,191 $ 392,949,509 $ 9,157,630 $ 703 $ 16,343 $ 15,562 $ 1,484 $ 5,420,651 $ 396,703,534 $ 392,965,071 $ 9,159,1 14 $ 257,888 $ 26,51 1,945 $ 26,580,289 $ 189,544 5,162,763 371,393,446 367,586,639 8,969,570 $ 5,420,651 $ 397,905,391 $ 394,166,928 $ 9,159,114 116 COUNTY OF WELD STATE OF COLORADO Northern Colorado Regional Forensic Laboratory Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the fiscal year ended Year Ended December 31, 2014 Budgeted Operating Expenses: Supplies Purchased Services Other Total Operating Expenses Operating Income (Loss) N onoperating Revenues: Federal grants Total Nonoperating Revenues Net Income (Loss) Net Position at Beginning of Year Net Position at end of Year Original Final Actual - $ 6,500 $ 179,500 Variance 6,211 $ 140,596 2,808 289 38,904 (2,808) 186,000 149,615 (36,3 85) (186,000) (149,615) 36,385 186,000 149,615 (36,385) 186,000 149,615 (36,385) 117 COUNTY OF WELD STATE OF COLORADO Motor Vehicle Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the fiscal year ended December 31, 2014 Budgeted Operating Revenues: Charges for services Miscellaneous Total Operating Revenues Operating Expenses: Supplies Purchased Services Depreciation Other Total Operating Expenses Operating income (loss) Nonoperating Revenues (Expenses): Other Grant Gain/Loss on Disposal Judgements and Damages Total Nonoperating Revenues(Expenses) Income(Loss) before contributions and transfers Transfers - in Net Income (Loss) Net Position at Beginning of Year Original Final Actual $ 5,690,000 $ 7,310,000 $ 3,130,000 3,130,000 8,820,00() 10,440,000 2,521,000 3,036,000 3,130,000 71,000 2,521,000 4,656,000 3,130,000 71,000 8,758,000 10,378,000 62,000 62,000 1,593,829 1,593,829 (39,000) (39,000) 1,554,829 1,554,829 1,616,829 1,616,829 1,900,000 1,616,829 3,516,829 Variance 5,822,164 $ (1,487,836) 3,690,218 560,218 9,512,382 (927,618) 2,426,532 4,528,552 3,667,992 70,842 10,693,918 (1,181,536) 14,997 41,305 489,632 19,060 564,994 (616,542) 1,900,000 1,283,458 21,443,886 21,443,886 21,443,886 94,468 127,448 (537,992) 158 (315,918) (1,243,536) 14,997 (1,552,524) 528,632 19,060 (989,835) (2,233,371) (2,233,371) Net Position at End of Year $ 23,060,715 $ 24,960,715 $ 22,727,344 $ (2,233,371) 118 COUNTY OF WELD STATE OF COLORADO Health Insurance Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the fiscal Year Ended December 31, 2014 Budgeted Operating Revenues: Employee Premiums Operating Expenses: Supplies Purchased Services Other Insurance Claims Total Operating Exepenses Operating Income (loss) Net Income (Loss) Net Position at Beginning of Year Net Position at end of Year Original Final Actual Variance $ 17,914,044 $ 17,914,044 $ 17,396,309 $ (517,735) 196,500 680,900 1,541,661 15,494,983 196,500 680,900 1,541,661 15,494,983 17,9 1 4,044 17,9 1 4,044 11,827 1,358,125 134,591 12,502,603 184,673 (677,225) 1,407,070 2,992,380 14,007,146 3,906,898 3,389,163 3,389,163 3,635,517 3,635,517 3,635,517 3,389,163 3,389,163 $ 3,635,517 $ 3,635,517 $ 7,024,680 $ 3,389,163 119 COUNTY OF WELD STATE OF COLORADO Insurance Fund Schedule of Revenues Expenses and Changes in Net Position - Budget and Actual For the fiscal Year Ended December 31, 2014 Budgeted Original Final Operating Revenues: Charges for services $ 90,000 $ Operating Expenses: Supplies Purchased Services Insurance and Bonds Insurance Claims Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): General property taxes Penalties & interest Interest Judgements and Damages Total Nonoperating Revenues (Expenses) Income(Loss) before contributions and transfers Other Financing Sources (Uses) Transfers - in Net Income (Loss) Net Position at Beginning of Year Actual Variance 90,000 $ 3,500 43,500 530,000 1,563,000 3,500 43,500 530,000 1,963,000 2,140,000 2,540,000 (2,050,000) (2,450,000) 2,000,000 30,000 20,000 2,000,000 30,000 120,000 2,050,000 2,150,000 (300,000) (300,000) 73,171 $ (16,829) 2,365 1,135 39,335 4,165 457,299 72,701 2,130,460 (167,460) 2,629,459 (89,459) (2,556,288) (106,288) 1,993,771 1,163 29,314 119,339 2,143,587 (6,229) 1,163 (686) (661) (6,413) (412,701) (112,701) 500,000 500,000 87,299 387,299 2,045,043 2,045,043 2,045,043 Net Position at End of Year $ 2,045,043 $ 1,745,043 $ 2,132,342 $ 387,299 120 COUNTY OF WELD STATE OF COLORADO Phone Service Fund Schedule of Revenues, Expenses and Canges in Net Position - Budget and Actual For the Fiscal Year Ended December 31, 2014 Budgeted Original Final Actual Variance Operating Revenues: Charges for services $ 1,292,248 $ 1,292,248 $ 1,306,322 $ 14,074 Operating Expenses: Personnel Services Supplies Purchased Services Depreciation Other Total Expenditures Operating Income (Loss) Net Income (Loss) 249,429 249,429 239,057 10,372 14,100 14,100 10,980 3,120 733,966 733,966 778,869 (44,903) 244,626 244,626 151,635 92,991 50,127 50,127 50,127 1,292,248 1,292,248 1,230,668 61,580 75,654 75,654 75,654 75,654 Fund Balance, Beginning of Year 1,572,295 1,572,295 1,572,295 Fund Balance, End of Year $ 1,572,295 $ 1,572,295 $ 1,647,949 $ 75,654 Blank Page 121 122 STATISTICAL SECTION STATISTICAL SECTION (unaudited) This part of the Weld County Government's comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the government's. financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity Weld County is without bonded debt and, accordingly, the following statistical tables are not presented: Ratios of Outstanding Debt by Type and Ratios of General Bonded Debt Oustanding. Demographic and Economic Infonnation These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's .financial activities take place. Operating Information These schedules contain service and infrastructure rastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Page 124 132 137 141 146 Sources_ Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. COUNTY OF WELD STATE OF COLORADO Net Position by Component Last Ten Years (accrual basis of accounting) (Tovermental activities Invested in capital assets, net of related debt Restricted for Programs Emergencies Claims Public Works Other Unrestricted Total governmental activities net position Iusiness-type activities Invested in captial assets, net of related debt Unrestricted Total business -type activities net position Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net position Fiscal Year 2005 2006 2007 $ 231,271,356 $ 233,626,280 $ 249,237,323 4,695,690 4,000,000 1,748,950 3,953,450 4,000,000 1,748,951 3,988,022 5,000,000 1,748,951 2008 $ 253,009,697 4,033,041 5,000,000 1,270,613 2009 $ 256,826,307 4,524,110 6,000,000 2,270,613 39,782,093 48,545,826 40,122,962 37,397,773 40,819,002 $ 281,498,089 $ 291,874,507 $ 300,097,258 $ 300,711,124 $ 310,440,032 $ 809,643 $ 852,705 $ 987,445 $ 1,076,125 $ 1,011,224 1,508,322 2,118,077 2,191,453 2,776,179 2,478,408 $ 2,317,965 $ 2,970,782 $ 3,178,898 $ 3,852,304 $ 3,489,632 $ 232,080,999 10,444,640 41,290,415 $ 283,816,054 $ 234,478,985 9,702,401 50,663,903 $ 294,845,289 $ 250,224,768 10, 736,973 42,314,415 $ 303,276,156 $ 254,085,822 10,303,654 40,173,952 $ 304,563,428 $ 257,837,531 12,794,723 43,297,410 $ 313,929,664 2010 2011 2012 2013 2014 $ 254,893,784 $ 252,365,188 $ 260,630,887 $ 270,069,712 $ 297,892,975 4,912,503 5,360,845 6,197,551 5,736,608 8,104,172 6,000,000 6,000,000 6,000,000 6,000,000 7,000,000 4,734,410 4,734,409 4,734,409 4,734,409 4,734,409 - - 39,542,250 63,999,271 89,429,234 - - 1,000,426 1,485,432 1,049,628 66,081,025 74,131,389 50,626,441 58,762,664 66,196,157 $ 336,621,722 $ 342,591,831 $ 368,731,964 $ 410,788,096 $ 474,406,575 $ 1,305,614 $ 1,524,148 $ $ - $ 3,194,266 3,526,143 - (1,323) 579 $ 4,499,880 $ 5,050,291 $ $ (1,323) $ 579 $ 256,199,398 $ 253,889,336 $ 260,630,887 $ 270,069,712 $ 297,892,975 15,646,913 16,095,254 57,474,636 81,955,720 110,317,443 69,275,291 77,657,532 50,626,441 58,761,341 66,196,736 $ 341421,602 $ 347,642,122 $ 368,731,964 $ 410,786,773 $ 474,407,154 COUNTY OF WELD STATE OF COLORADO Changes in Net Position Last Ten Years (accrual basis of accounting) Expenses Governmental activities: General government Public safety Streets and highways Health and welfare Culture and recreation Economic assistance Interest on long-term debt Total governmental activities expenses Business -type activites: Paramedic service Northern Colorado Regional Crime Lab Total primary government expenses Program Revenues Governmental activates: Charges for services: General government Public safety Streets and highways Health and welfare Culture and recreation Economic assistance Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Paramedic service Northern Colorado Regional Crime Lab Total primary government revenues Net (Expenses)fRevenue Governmental activities Business -type activities Total primary government net General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes Specific Ownership Other Royalities Miscellaneous Unrestricted investment earnings Donated capital assets Transfers Total governmental activities Business -type activities: Paramedic service Northern Colorado Crime Lab Total primary government Change in Net Position Governmental activities Business -type activities Total primary government 2005 $ 23,047,725 $ 30,449,441 36,919,372 24,843,147 771,295 13,736,745 340,411 2006 26,641,373 32,562,998 37,068,628 26,179,807 1,549,379 11,747,943 322,293 2007 $ 35,301,327 36,717,165 34,637,731 31,026,419 1,008,703 14,403,662 335,771 • 2008 $ 31,019,065 40,496,490 40,795,016 35,1 17,22.5 1,077,743 14,601,330 2009 $ 31,738,352 40,649,718 31,123,536 39,882,326 1,013,683 15,546,027 130,108,136 136,072,421 153,430,778 163,106,869 • • • 159,953,642 6,371,413 7,156,700 8,444,840 9,289,761 9,310,991 $ 136,479,549 $ 143,229,121 $ 161,875,618 $ 172,396,630 $ 169,264,633 $ 9,792,423 $ 5,430,422 3,433,713 13,664,206 333,293 1,156,012 27,885,047 12,265,623 6,3 78,749 4,023,310 14,949,936 345,990 1,186,129 30,045,943 61,695,116 7,829,714 69,195,680 7,809,516 $ 10,043,033 $ 4,998,285 3,566,774 17,504,660 453,352 838,871 36,500,297 4,738,627 _ 78,643,899 8,652,955 11,681,170 5,814,979 3,518,926 19,870,091 468,488 756,698 33,134,702 25,454 75,270,508 9,113,166 $ 8,728,521 5,658,339 3,262,996 21,091,150 448,990 1,041,768 36,580,590 76,812,354 7,563,318 69.524.830 77.005.196 87.296.854 (68,413,020) 1,458,301 $ (66,954,719) $ $ 56,382,533 $ 6,627,991 3,733,025 2,679,442 355,784 (66,876,741) 652,816 (66,223,925) (74,786,879) 208,115 $ (74,578,764) 62,124,792 $ 6,614,819 5,266,786 4,539,172 7,602 (1,3 00,000) 84,383,674 (87,836,361) (176,595) $ (88,012,956) 67,215,993 $ 7,056,071 3,546,134 84.375 672 (83,141,288) (1,747,673) $ (84,888,961) 72,735,158 $ 7,035,189 5,454,324 5,191,430 4,075,554 850,000) 75,047,892 6,167,691 3,472,065 1,707,235 5,468,676 2,391,636 (1,3 85,000) 69,778,775 77,253,171 83,009,628 88,450,225 92,870,195 850,000 1,385,000 $ 69,778,775 $ 77,253,171 $ 83,009,628 $ 89,300,225 $ 94,255,195 $ 1,365,755 $ 10,376,430 $ 8,222,749 $ 1,458,301 652,816 208.115 $ 2,824,056 613,864 $ 9,728,907 673,405 (362,673) $ 11,029,246 $ 8,430,864 $ 1,287,269 $ 9,366,234 126 2010 $ 31,497,117 40,551,255 34,662,990 37,946,589 1,215,481 9,262,302 2011 $ 31,930,407 42,613,038 37,519,293 35,881,864 1,123,268 8,115,722 2012 $ 34,788,024 44,204,968 37,223,683 36,853,734 1,345,018 7,420,075 2013 $ 43,458,478 $ 47,903,331 39,964,090 38,792,474 1,511,184 8,481,320 2014 46,770,013 54,027,026 42,894,441 39,085,217 1,792,648 9,408,488 155,135,734 157,183,592 161,835,502 180,110,877 193,977,833 6,349,218 5,964,112 2,846,859 73,321 147,713 $ 161,484,952 $ 163,147,704 $ 164,682,361 $ 180,184,198 $ 194,125,546 $ 10,1 17,110 $ 7,021,139 1,932,790 21,311,474 549,483 834,429 27,858,758 12,644,748 6,023,109 2,022,037 19,360,887 619,316 822,309 24,034,211 $ 11,570,917 7,294,578 3,439,523 22,209,032 725,868 381,199 23,821,017 $ 12,595,814 $ 8,981,482 4,473,145 24,231,535 928,631 493,180 32,277,806 13,477,033 13,229,980 5,825,407 25,041,461 1,154,300 567,753 30,442,859 69,625,183 5,859,468 65,526,617 6,514,522 69,442,134 1,954,205 83,981,593 71,998 89,738,793 149,615 75.484.651 72.041.139 71.396.339 84.053.591 89.888.408 (85,510,551) (489,750) $ (86,000,301) (91,656,975) 550,410 $ (91,106,565) $ 95,251,609 $ 6,018,849 845,578 2,556,866 6,415,403 2,103,942 (1,500,000) (92,393,368) (96,129,284) (104,239,040) (892,654) (1,323) 1,902 $ (93,286,022) $ (96,130,607) $(104,237,138) 76,808,723 $ 5,743,784 1,794,415 7,169,988 4,3 05,446 1,804,728 88,229,111 7,302,134 2,410,032 12,083,892 3,009,211 1,341,489 - 4,157,638 $ 105,940,590 7,347,314 2,291,667 17,325,773 4,098,817 1,181,245 $ 115,694,397 10,028,385 4,350,529 31,503,068 4,807,802 1,473,338 111,692,247 97,627,084 118,533,507 13 8,185,406 167,857,519 1,500,000 - (4,157,638) $ 113,192,247 $ 97,627,084 $ 114,375,869 $ 138,185,406 $ 167,857,519 $ 26,181,696 $ 5,970,109 $ 26,140,139 $ 42,056,122 $ 63,618,479 1,010,250 550,410 (5,050,292) (1,323) 1,902 $ 27,191,946 $ 6,520,519 $ 21,089,847 $ 42,054,799 $ 63,620,381 127 COUNTY OF WELD STATE OF COLORADO Fund Balances of Governmental Funds Last Ten Years (accrual basis of accounting) 2005 2006 2007 2008 2009 General Fund Reserved Unreserved Nonspendable* Restricted* Committed* Assigned* Unassigned* Total general fund All other Governmental Funds Reserved Unreserved Unreserved, reported in: Special revenue funds Capital projects funds Debt service funds Nonspendable* Restricted* Committed* Assigned* Unassigned* $ 1,486,188 $ 946,073 $ 1,081,217 $ 1,161,271 $ 846,808 7,648,920 10,630,592 7,007,528 10,645,617 9,960,565 $ 9,135,108 $ 11,576,665 $ 8,088,745 $ 11,806,888 $ 10,807,373 8,834,511 19,019,004 12,074,704 12,631,501 9,861,718 26,155,751 25,281,236 27,791,990 25,032,274 32,475341 3,611,495 - 272,790 (2,064,635) 1,617,052 Total for all governmental funds $ 47,736,865 $ 55,876,905 $ 48,228,229 $ 47,406,028 $ 54,761,484 * Difference in find balance presentation is due to implementation of GASB 54 in 2011 128 2010 2011 $ 1,882,253 $ 9,967,335 - 687,239 6,000,000 - 1,927,404 1,808,529 - 10,691,668 2012 $ $ 1,216,973 6,863,582 2,305,309 615,428 10,126,783 2013 677,240 7,114,812 2,089,993 1,527,256 10,165,207 2014 683,377 7,671,021 2,105,601 1,581,113 11,437,583 $ 11,849,588 $ 21,114,840 $ 21,128,075 $ 21,574,508 $ 23,478,695 7,138,513 57,755,218 6,362,877 - 963,566 - 36,493,043 - 32,295,274 1,020,322 40,377,056 46,347,303 1,321,277 57,704,338 55,508,238 1,253,485 85,864,936 55,668,390 $ 83,106,196 $ 90,866,723 $ 108,872,756 $ 136,108,361 $ 166,265,506 129 COUNTY OF WELD STATE OF COLORADO Changes in Fund Balances, Governmental Funds Last Ten Years (accrual basis of accounting) 2005 2006 2007 2008 2009 Revenues Taxes Licenses and permits Intergovernmental Fines and forfeitures Charges for Services Miscellaneous Fees Total Revenues Expenditures Current: General government Public Safety Public Works Public health and welfare Culture and recreation Economic assistance Capital outlay Debt service Interest Principal Total Expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses) Transfers -in Transfers -out Total Other Financing Sources (Uses) Net changes in Fund Balance $ 63,261,095 $ 69,178,181 $ 74,627,631 $ 80,182,212 $ 84,642,477 2,119,419 3,188,354 2,129,731 2,089,925 1,467,282 41,110,202 44,982,577 53,886,023 52,887,281 61,100,082 204,530 135,908 416,668 295,246 323,411 8,618,819 8,232,213 7,800,131 8,898,865 8,939,683 7,582,510 13,377,598 9,567,707 12,523,751 7,132,908 8,175,907 8,602,079 8,061,587 7,845,617 7,546,475 131,072,482 147,696,910 156,489,478 164,722,897 171,152,318 22,384,671 25,366,204 32,605,930 29,061,657 28,311,209 29,834,629 31,881,427 35,945,956 38,564,419 38,668,759 25,490,667 26,315,156 31,798,757 36,643,514 29,595,637 24,284,817 25,993,962 30,940,641 34,585,229 39,287,986 775,903 1,550,929 1,011,311 1,077,592 1,014,422 13,572.861 11, 746,242 14,449.197 14,459.482 14,622,541 5,165,931 14,980,649 17,050,592 9,883,207 9,911,307 340,411 322,293 335,771 - - 121,849,890 138,156.862 164,138,155 164,275,100 161,411,861 9,222,592 9,540,048 (7.648,677) 447,797 9,740,457 7,436,144 11,309,847 4,340,010 4,914,085 7,583,632 7,436,144 12,609,847 4,340,010 6,184,085 9,968,632 - (1,300.000) - (1.270,000) (2,385,000) $ 9,222,592 $ 8,240,048 $ (7,648,677) $ (822,203) $ 7,355,457 Debt Service as a percentage of noncapital expenditures 0.29 % 0.26 % 0.23 % 0.00 % 0.00 % 130 2010 2011 2012 2013 2014 $ 102,079,791 $ 84,310,617 $ 97,903,945 $ 115,265,310 $ 130,031,486 2,512,999 2,093,316 2,968,095 3,341,876 5,434,346 53,021,343 44,670,251 45,584,435 51,914,958 56,514,382 587,330 441,455 319,091 342,566 351,384 7,771,230 6,899,382 7,748,408 9,950,307 13,024,221 8,133,573 15,397,352 19,019,845 24,954,352 41,065,332 8,827,457 9,445,288 10,392,181 11,297,774 12,202,782 182,933,723 163,257,661 183,936,000 217,067,143 258,623,933 29,608,752 30,964,059 31,775,959 41,791,404 47,479,034 38,176,653 40,657,128 43,270,068 46,843,573 52,038,711 28,524,940 30,834,148 37,846,573 39,783,527 59,780,472 36,850,368 3.5,187,9.59 36,737,703 38,802,420 39,439,892 1,214,300 1,127,873 1,346,107 1,526,889 1,793,944 9,086,301 7,880,482 7,517,791 8,539,305 9,571.342 8,627,695 7,795,485 7,589,4.59 12,144,427 1.5,963,395 152,089,009 154,447,134 166,083,660 189,431,545 226,066.790 30,844,714 8,810,527 17,852,340 27,635,598 32,557,143 7,157,161 15,807,328 11,194,959 13,766,733 10,970,458 9,657,161 16,857,328 11,041,260 14,166,733 13,370,458 (2,500,000) (1.050,000) 153,699 (400,000) (2,400,000) $ 28,344,714 $ 7,760,527 $ 18,006,039 $ 27,235,598 $ 30,157,143 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % COUNTY OF WELD STATE OF COLORADO Assessed Value and Estimated Actual Value of Taxable Property Last Ten Years Levy Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Vacant Land 115,005,330 110,566,010 132,402,840 125,609,000 114,462,060 107,499,350 82,601,960 76,770,990 67,644,470 62,623,500 Residential Property 972,251,070 1,051,061,180 1,218,082,640 1,258,374,790 1,147,417,980 1,161,670,030 1,1 10,455,180 1,126,143,600 1,125,171,520 1,153,472,230 Source: Office of the Weld County Assessor Commercial Property 507,867,420 538,352,810 631,036,750 654,957,800 703,405,460 713,727,230 700,148,970 741,004,020 717,135,660 733,310,060 Industrial Property 155,227,960 194,235,560 214,051,130 216,214,910 281,991,090 338,066,670 343,525,350 405,141,700 444,712,190 540,61 1,520 Auricultural 172,592,990 175,708,230 96,371,890 97,874,960 100,747,790 100,999,290 117,189,830 120,086,240 141,969,440 148,595,520 Natural Resources 9,310,740 10,876,640 14,538,010 14,996,920 15,959,790 12,388,270 12,839,310 12,176,900 14,519,910 14,908,830 Note: The assessment ratio for Residential Property was 10.36 in 1995, changed to 9.74 in 1997, 9.15 in 2001 and 7.96 in 2003 as determined by State Law. Commercial Property and non-residential Personal Property has been assessed at 29% of actual value throughout the ten-year time frame. 132 Oil & Gas 1,279,782,160 1,736,735,240 1,749,119,710 1,709,997,160 2,868,304,890 1,673,838,130 2,439,298,540 3,382,053,530 3,900,510,227 5,738,450,910 State Assessed 403,287,500 386,413,500 412,859,500 487,797,900 538,504,800 593,020,000 615,803,700 650,106,300 707,171,100 738,109,300 Total Taxable Assessed Value 3,615,325,170 4,203,949,170 4,468,462,470 4,565,823,440 5,770,793,860 4,701,208,970 5,421,862,840 6,513,483,280 7,118,834,517 9,130,081,870 Estimated Actual Taxable Value 19,255,338,644 21,01 1,080,893 22,698,462,039 23,564,608,165 24,007,360,964 23,154,987,218 22,248,958,038 25,455,503,949 33,821,697,185 29,739,252,147 Total Direct Tax Rate 19.957 17.900 16.804 16.804 16.804 16.804 16.804 16.804 16.804 15.800 Assessed Value as a Percentage of Actual Value 18.776 % 20.008 % 19.686 % 19.376 % 24.038 % 20.303 % 24.369 % 25.588 % 21.048 % 30.700 % COUNTY OF WELD STATE OF COLORADO Property Tax Rates Direct and Overlapping Governments Last Ten Years General Levy Year Government 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 "13.909 12.321 11.487 11.736 11.842 11.389 "10.479 10.476 1 1.788 12.797 Total Direct Road & Bridge Public Welfare Contingent Capital Insurance County 2.002 1.847 1.668 1.647 1.613 1.498 1.303 1.303 1.639 1.839 1.772 "1.551 1.333 1.293 1.266 1.965 1.863 1.864 1.203 0.941 0.535 1.488 0.360 1.544 0.619 1.399 0.448 1.344 1.754 0.215 1.415 1.491 1.342 1.492 1.343 0.713 1.176 0.251 0.277 0.298 0.336 0.329 0.322 0.326 0.326 0.285 0.223 Overlapping Rates Levy Year Direct City of School Aims Weld County Greeley District 6 College Library 2005 19.957 11.274 44.711 6.328 3.249 2006 17.900 11.274 41.129 6.357 3.281 2007 16.804 11.274 40.760 6.330 3.261 2008 16.804 11.274 36.922 6.308 3.253 2009 16.804 11.274 36.600 6.323 3.260 2010 16.804 11.274 36.633 6.312 3.255 2011 16.804 11.274 37.104 6.360 3.281 2012 16.804 11.274 37.856 6.355 3.271 2013 16.804 11.274 38.175 6.020 3.261 2014 15.800 11.274 37.880 6.330 3.267 The basis for the property tax rates is per $1,000 assessed valuation Source: Office of the Weld County Assessor. 19.957 17.900 16.804 16.804 16.804 16.804 16.804 16.804 16.804 15.g00 134 COUNTY OF WELD STATE OF COLORADO Principle Property Tax Payers Current Year and Nine Years Ago Noble Energy Inc Kerr-McGee Oil & Gas Onshore 12 Encana Oil & Gas OnShore LP Petroleum Development Corp (PDC) Bonanza Creek Energy Inc Public Service Company of CO (Xcel) DC: P Midstream LP Kerr McGee Gathering !LC Carrizo Oil & Gas Inc Leprino Foods Company Kerr-McGee Rocky Mountain Corp Patina Oil & Gas Corp Rocky Mountain Energey Center Petro -Canada Resoureces (USA) Inc Merit Energy Eastman Kodak Company Duke Energy Field Services Source: Weld County Assessor 2014 Taxable Assessed Value Rank S 2,002,942,720 1 1,830,318,000 2 399;230,730 3 339,824,330 4 285,524,130 5 250,070,600 6 182,289,110 7 127;427,700 8 107,845,270 9 99,121,120 10 S 5,624,593,710 Percentage of Total County Taxable Assessed Value 21.94 % 20.05 % 4.37 % 3.72 % 3.13 % 2.74 % 2.00 % 1.40 % 1.18 % 1.09 % 61.62 % 2005 'Taxable Assessed Value Rank 128;268,320 3 58,548,890 6 102,537,900 4 440,188,500 1 398,688,580 2 97,893,000 5 53,642,060 7 52,813,030 8 35,866,990 9 34,357,980 10 S 1,402,805,250 Percentage of Total County Taxable Assessed Value 3.55 % 1.62% 2.84 Vu 12.18 % 11.03 % 2.71 % 1.48 % 1.46% 0.99 % 0.95 % 38.81 135 COUNTY OF WELD STATE OF COLORADO Property Tax Levies and Collections Last Ten Years Levy Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Collect Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Taxes Levied for the Fiscal Year (1) 59,739,651 64,714,321 70,643,162 75,088,043 76,724,097 96,972,420 78,999,116 91,108,983 109,452,573 119,624,895 Collected within the Fiscal Year of the Levy Tax Percentage Amount (2) of Levy 59,395,927 99.425 % 64,580,198 99.793 % 70,575,408 99.904 % 74,877,199 99.719 % 75,903,359 98.930 % 96,736,465 99.757 % 78,833,201 99.790 % 90,504,925 99.337 % 109,154,195 99.727 % 119,187,009 99.634 % Collections in Subsequent Years (3 210,799 58,767 327,098 167,705 159,944 235,955 167,862 37,471 Tax Years (3 59,606,726 64,638,965 70,902,506 75,044,904 76,063,303 96,972,420 79,001,063 90,504,925 109,191,666 119,187,009 Total Collections to Date Percentage Years (3 99.777 % 99.884 % 100.367 % 99.943 % 99.139 % 100.000 % 100.002 % 99.337 % 99.762 % 99.634 % Source: 1) Office of the Weld County Assessor 2) YTD Treasurer's Tax Distribution for tax years 2004-2010. Values from 2011 forward taken from the Treasurer's Authority Receivable Report 3) YTD Treasurer's Tax Distribution for tax years 2004-2010. Values from 2011 forward taken from the Treasurer's Authority Receivable Report. 136 COUNTY OF WELD STATE OF COLORADO Direct and Overlapping Debt Governmental Activities Debt December 31, 2014 Jurisdiction Cities & Towns Schools Special Districts Total Overlapping Net General Obligation Bonded Debt Outstanding 52,542,822 847,093,061 125,094,837 $ 1,024,730,720 Source: Debt outstanding provided by each governmental unit. Note: Percentage Applicable to Government (1) 82.81% 51.68% 65.83% Amount Applicable to Government (2) 43,512,122 437,760,8 16 82,355,015 $ 563,627,953 (1) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the county. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by residents and businesses of Weld County. This process recognizes that, when considering the county's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government_ (2) Overlapping debt applicable to the County is figured by prorating each local jurisdictions debt by the percentage of the jurisdictions inside and outside the county. 137 COUNTY OF WELD STATE OF COLORADO Legal Debt Margin Infonination Last Ten Years Legal Debt Margin Calculation for Fiscal Year 2014 Assessed Value, 2014 Debt Limit 3 percent of Assesed Value Total Bond Debt Installment Purchase Agreements Total Amount of debt applicable to limit Legal Debt Margin Legal Debt Margin Information Last Ten Fiscal Years $0 0 $ 9,130,081,870 273,902,456 0 $ 273,902,456 Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit Note: 2005 2006 2007 2008 108,459,755 126,118,475 134,053,874 136,974,703 $ 108,459,755 $ 126,118,475 $ 134,053,874 $ 136,974,703 0.00 % 0.00 % 0.00 % 0.00 % Debt Limitation: Under Section 30-35-201, Colorado Revised Statutes, 1973, the County may incur indebtedness for general County purposes in an amount not to exceed 3% of assess valuation of all taxable property. 138 2009 2010 2011 173,123,816 141,036,269 162,655,885 2012 195,404,498 2013 2014 213,565,036 273,902,456 $ 173,123,816 $ 141,036,269 $ 162,655,885 $ 195,404,498 $ 213,565,036 $ 273,902,456 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % COUNTY OF WELD STATE OF COLORADO Private Purpose Revenue Bonds December 31, 2014 INDUSTRIAL REVENUE BONDS: ISSUER Centennial Area Health Education Central GSS LB Association Nursing IIume North Range Behavioral Health TOTAL PRIVATE PURPOSE REVENUE BONDS TYPE. OF FACILITY Office Nursing Home Office AMOUNT S 388,000 S 2,020,000 S 4,500,000 ISSUE DATE 5/99 10/98 5/07 DEBT REVENUE BOND OUTSTANDING OUTSTANDING BEGINNING OF YEAR ISSUED RETIRED END OF YEAR $164,628 $915,000 S2,749,370 S3,828,998 0 $164,628 0 565,000 0 $141,750 $0 $371,378 $- $850,000 S2,607,620 S3,457,620 140 COUNTY OF WELD STATE OF COLORADO Demographic and Economic Statistics Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Population 221,957 229,377 236,908 244,515 251,220 252,825 254,759 263,691 263,691 269,785 Total Personal Income Per ($ billion) Capita Income 5.79 5.84 6.23 6.66 7.38 7.07 6.93 7.76 8.35 8.35 25,968 25,495 26,280 27,238 27,788 28,503 27,186 25,233 29,986 31,657 Unemployment Rate 5.00 % 3.80 % 4.63 % 6.30 % 8.16 % 9.80 % 9.10 % 8.70 % 6.70 % 3.90 % Source: Upstate Colorado in cooperation with University of Northern Colorado and the State of Colorado demographer. COUNTY OF WELD STATE OF COLORADO Principal Employers Current Year and Nine Years Ago JBS Swift Beef Company State of Colorado (includes UNC) Banner Health (NCMC) School District 6 Vestas State Farm Insurance Companies Weld Count Government Halliburton Energy Services Inc City of Greeley Select Energy Services Aims Community College Star Tek Inc Eastman Kodak Company Total Principal Employers Other Employers Total County Employment Source: Upstate Colorado 2014 Employees Rank 4,654 3,811 2,885 2,400 2,150 1,790 1,447 1,030 850 752 21,769 1 05,962 127,731 1 2 3 4 5 6 7 8 9 10 Percentage of Total County Employment 3,64 % 2.98 % 2.26 % 1,88 % 1.68 % 1.40 % 1.13 % 0.81 % 0.67 % 0.59 % 17.04% g2.96 % 100_00% 2005 Percentage of Total County Employees Rank Employment 2,960 1 1,988 4 2,200 2 2,037 3 1,513 6 1,388 8 974 10 1,463 7 987 9 1,600 5 17,110 90,870 107,980 2.74 % 1.84 % 2.04 % 1.89 % -% 1.40 % 1.29 0.90 % -% 1.35 % 0.92 % 1.48 % 15.85 % 84.15 3<) 100.00 % 142 143 COUNTY OF WELD STATE OF COLORADO Full -Time Equivalent County Government Employees by Function/Program Last Ten Years 2005 2006 2007 2008 2009 2010 Function/Program General government (6) Public safety (1) (5) Public works Health and welfare (2) Culture and recreation Economic assistance (3) Total General Government Business -type activities: Paramedic Service (4) Total primary government 247 256 258 269 247 244 275 279 308 352 365 345 139 167 167 165 163 161 286 305 337 357 372 378 1 1 1 1 1 2 181 166 173 148 144 78 1,129 1,174 1,244 1,292 1,292 1,20g 62 63 67 74 72 69 1,191 1,237 1,311 1,366 1,364 1,277 Source: Weld County Human Resources Notes: (1) A traffic unit was added in 2001 funded by the CDOT Office of Highway Safety Grant and initially requiring 5 positions The North Jail Complex was built in 1997 with 160 beds and a staffing level of 75. Phase II added 226 beds in 2004 and increased projected 2005 staffing to 132. Phase III construction in 2006-07 added 374 beds and increased staffing of 42 in 2007. Twelve additional management and support positions were added in 2008. The deferred opening of 122 secure confinement beds contained prevented further hiring. (2) The demand for welfare and public health care has increased more rapidly with the economic downturn. (3) As of 12/31/2009 Headstart responsibilities were relinquished back to the Federal Agency for operational purposes. (4) As of 05/07/2012 Paramedic Services was transferred by Weld County to Northern Colorado Medical Center Inc. (5) In 2013 the Communications Department brought on employees to operate the Call Center for Weld County (6) In 2014 the Weld County Commissioners decided to no longer outsource the Information Technology Department. Therefore, employees were added for this department 144 2011 2012 2013 2014 251 239 243 290 351 357 432 436 161 164 179 176 368 380 374 383 2 2 2 2 73 79 89 86 1,206 1,221 1,319 1,373 69 1,275 1,221 1,319 1,373 145 COUNTY OF WELD STATE OF COLORADO Operating Indicators by Function/Program Last Ten Years 2005 2006 2007 2008 2009 Function/Program General government: Motor vehicle registration Registered voters (1) Number of votes cast (2) Percent of registered voters voting Public safety: Adult arrests Juvenile arrests Average secure jail population E911 Calls Building Permits Valuation (thousands) Public works: Miles of road graveled Snow removal lane miles Grading lane miles Miles of Upgrade -Aggregate Surfaced Roads Culverts (new and repaired) 15" and larger Tons of asphalt laid Tons of gravel crushed Health and welfare: Social Services Caseload Patient contacts Immunizations Culture and recreation: Visitors -Missile Park County Fair Exhibitors Economic assistance: (3) I-leadstart clients Migrant Headstart clients I3usiness-type activities: Paramedic Services Patients transported (4) 462,877 466,777 484,412 493,544 478202 99,711 100,924 88,601 116,269 112,276 46,327 68,871 30,203 106,518 34,027 46.5 % 68.2 % 34.1 % 91.6 % 30.3 % 1,543 1,574 1,606 1,122 1,059 206 215 224 110 98 455 579 628 610 538 79,425 92,045 95,524 99,951 95,383 2,082 1,972 2,000 2,571 1,976 $104,225 $399,473 $100,609 .$120,118 S86,794 401 160 359 312 205 78,435 125,225 222,703 94,685 176,786 165,681 164,906 135,779 148,324 152,568 - 10 34 52 33 217 242 250 252 233 95,634 70,421 67,389 67,548 90,664 487,477 408,409 411,582 231,359 282,315 14,000 14,500 15,000 15,500 16,000 11,000 30,440 11,880 11,500 15,000 6,900 6,360 7,165 7,000 7,000 575 586 595 600 600 2,220 2,422 2,326 2,335 2,425 562 562 562 562 562 266 266 266 275 180 7,284 8,375 8,210 8,866 9,214 Source: Various Weld County Department Records Notes: (1) Beginning in 1999 the number of registered voters reflects active voters. (2) Even years represent general elections, odd years coordinated elections. (3) As of U/31/2009 Headstart responsibilites were relinquished back to the Federal Agency for opearational purposes. (4) As of 05/07/2012 Paramedic Services was transferred by Weld County to Northern Colorado Medical Center Inc. 2010 2011 2012 2013 2014 482,841 541,678 537,483 573.537 602,536 145,692 101,085 162,517 134,936 167,306 80,893 42,937 117,121 66,368 92,525 55.5 % 42.5 % 72.1 % 49.2 % 55.3 % 1,084 1,795 1,535 970 726 96 73 105 44 37 570 557 573 575 577 95,866 93,900 100,230 101,000 105,726 2,143 2,316 2,327 2,451 2,674 $392,380 $126,194 $322,183 $365,074 $782,793 416 419 482 402 145 77,889 89,503 57,474 65,342 75,302 154,602 133,297 157,634 144,036 194,527 36 41 16 91 87 264 254 222 224 170 101,431 86,805 125,668 106,155 147,496 372,709 436,880 270,441 238,395 247,935 20,500 23,017 25,500 30,000 31,400 11,769 8,778 12,727 15,084 24,619 8,159 7,333 4,873 6,633 5,674 500 650 600 625 550 2,383 2,436 2,489 2,468 1,837 9,214 9,470 147 COUNTY OF WELD STATE OF COLORADO Capital Asset Statistics by Function/Program Last Ten Years 2005 2006 2007 2008 2009 Function/Program General government: Building Square Footage 684,551 719,723 725,723 854,081 860,399 Court rooms 12 16 16 17 22 Information Systems Connections 1,292 1,292 1,292 1,320 1,320 Public safety: Jail capacity (beds) Patrol cars Radios and cell phones Public works: Miles of Roads Paved Unpaved Un-maintained Grader sheds Motor graders 386 386 386 760 760 46 55 55 55 62 1,140 1,229 1,270 1,359 1,179 681 675 670 684 674 2,394 2,387 2,370 2,352 2,331 512 327 492 490 493 18 18 18 18 18 30 30 30 30 30 Health and welfare: Alternative fuel vehicles 4 4 4 Economic assistance: Headstart sites Business -type activities: Paramedic Services Ambulances (1) 11 11 4 5 11 11 10 10 11 11 11 Source: Weld County Department records and Fixed Asset Inventory (1) As of 05/07/2012 Paramedic Services was transferred by Weld County to Northern Colorado Medical Center Inc. 2010 2011 2012 2013 2014 984,052 984,052 984,052 1,003,846 1,003,846 22 21 21 22 22 1,320 1,320 1,320 2,537 2,798 760 779 779 779 779 60 60 62 61 64 1,220 1,064 1,035 1,055 1,165 689 696 717 726 738 2,307 2,289 2,262 2,241 2,224 351 354 355 357 356 18 18 18 18 18 30 30 32 34 35 5 5 7 6 6 12 12 COUNTY OF WELD STATE OF COLORADO Insurance in Force December 31, 2014 Name of Company Policy Policy Period! Number Begins apes Details of Coverage Safety National Casulty Company SP 4049871 Lexington & Hiscox 20412751 One Beacon Illinois Union Liability Limits 12/31/13 12/31/14 Excess Worker's Employer's Liability Compensation S1,000,000/Accident. Worker's Compensation Statutory limits with County retaining first $750,000 each claim. 01/01/14 01/01/15 Property damage, automobile liabilities Property: $100,000,000/$500 deductible Crime: $1,000,000/$500 deductible Excess liability: $100;000,000 per claim/ $150,000 CAPP deductible Crime: $1,000,000/5500 deductibe crime coverage (employee dishonesty, robbery, forgery, money) 7910003550003 1/1/2014 1/1/2015 Excess Liability Excess $250,000 510,000,000 liability coverage per occurrence SO Deductibe for liability claims G25660328001 1/1/2014 1/1/2015 Network Security and Privacy Liabilty: $1,000,000 per claim Liability Network Security Liability: $1,000,000 per claim Annual Premium S 124,168 S 328,588 S 123,000 150 Single Audit WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2014 Program Description Department Of Housing and Urban Development Neighborhood Stabilization Project Passed Through the State Of Colorado Department Of Local Affairs: Community Services Block Grant Total Department of Housing and Urban Development Department Of Agriculture Passed Through the State Of Colorado Department Of Human Services: State Admin Matching Grant for Supplemental Nutrition Assistance Programs Department Of Justice Congressionally Selected Congressionally Selected Passed Through the State of Colorado Division Of Criminal Justice: Violence Against Women Formula Grants Total Department Of Justice Department Of Labor Employment Training Administration Passed Through the State Of Colorado Department Of Labor and Employment: Employment Service Cluster Employment Services/Wagner-Peyser Funded Activities Disabled Veterans Out Reach Program (DVOP) Total Employemnt Service Cluster TAA Case Management WIA Cluster WIA Adult Program WIA Youth Activities WIA ADMIN Disaster NEG Total WIA Cluster WIA ADMIN Adult H1B WIA Dislocated Worker Formula Grant Total Department Of Labor Training Administration Department Of Transportation Passed Through the State Of Colorado Department Of Transportation: Road Contracts Congestion Mitigation and Air Quality Flood Relief Total Department Of Transportation Environmental Protection Agency Passed Through the State Of Colorado Department Of Health: Radon Out Reach Total Environmental Protection Agency Department Of Health And Human Services Passed Through the State Of Colorado Department Of Local Affairs: Community Services Block Grant Passed Through the State Of Colorado Department Of Health: Public Health Emergency Preparedness Tuberculosis Control Programs Family Planning Services Immunizations Cluster Immunizations Cooperative Agreements Maternity Care Practices Project Chronic Disease Prevention and Control Promoting Safe and Stable Families FEDERAL Federal CFDA # Expenditure 14.218 119,593 14.228 680,266 799,859 10.561 2,449,351 16.753 94,136 16.753 149,615 16.588 55,964 299,715 17.207 463,161 17.801 16,207 479,368 17.245 23,903 17.258 834,682 17.259 743,306 17.277 537,043 2,115,031 17.268 80,590 17.278 391,129 3,090,021 20.205 1,608,079 20.205 498,972 20.205 1,288,953 3,396,004 66.605 5,918 5,918 93.569 241,703 93.069 109,145 93.116 3,457 93.217 79,458 93.268 74,745 93.741 137,593 93.945 17,500 93.556 1,300 151 WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2014 Program Description Preventative Health Services Preventative Health and Health Services Block Grant Maternal and Child Health Services Block Grant Non -Community Ground Water Womens Wellness Air Quality FDA Tabacco Total Passed Through the State Of Colorado Department Of Health: Passed Through the State Of Colorado Department Of Human Services : OAA -Elder abuse OAA-Ombudsman Supp OAA-D in Home Support Aging Cluster OAA-B Admin/Supportive Services OAA-C-1-Congrate Meals Nutrition Services Incentive Programs Total Aging Cluster OAA-E National Caregiver Substance Abuse and Mental Health Programs TANF Cluster Temporary Assistance for Needy Families Child Support Enforcement Low -Income Home Energy Assistance CCDF Cluster Child Care and Development Block Grant Child Care and Development Fund Total CCDF Cluster Child Welfare Services Program Foster Care Title IV -E Adoption Assistance Sodal Services Block Grant Chafee Foster Care Independence Program Medicaid Assistance Programs Countywide Cost Allocation Automated Data Processing Pass Thru Total Passed Through the State Of Colorado Department Of Human Services: Passed Through the State Of Colorado Dept of Health Care Policy and Finance: Medicaid Assistance Programs FEDERAL Federal CFDA # Expenditure 93.977 4,410 93.991 15,000 93.994 356,003 93.XXX 1,950 93.XXX 21,443 93.XXX 26.143 93.XXX 72,570 93.041 93.042 93.043 93.044 93.045 93.053 93.052 93.243 93.558 93.563 93.568 93.575 93.596 93.645 93.658 93.659 93.667 93.674 93.778 93.XXX 93.XXX 920.717 1,639 4,054 15,700 232,496 397,223 66,276 695,995 80,753 280.053 5,661.400 1,964.234 1,411;483 492.826 3,030,302 3,523,128 177,070 2,964.210 661.875 1,440,421 69,814 2,181,380 (1,269) 119,839 7,613,340 93.778 929.091 Total Department of Health and Human Services 23,343;290 Corporation For National And Community Services Passed Through the Governor's Commission on Community Service AmeriCorps Department Of Homeland Security Passed Through the State Of Colorado Department Of Local Affairs: Emergency Management Performance Passed Through the State Of Colorado Department Of Public Safety Disaster Grant & Public Assistance (Presidentially Declared Disaster) 94.006 72,797 97.042 76.000 97.036 2,636;654 Total Department of Homeland Security 2,712,654 36,169,609 152 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2014 Note 1 — Basis of Presentation: The accompanying schedule of expenditures of Federal awards, which includes the Federal grant activity of Weld County, is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirement of the U.S. Office of Management and Budget Circular A-133, Audits of States and Local Governments, and Non -Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the Weld County, Colorado's financial statements for the year ended December 31, 2014. Note 2 — Sub -Recipient Weld County, Colorado does not have any significant sub -recipients. 154 NMMcGee, Hearne & Paiz, LLP Certified Public Accountants and Consultants Certified Public Accountants and Consultants 314 West 18th Street, Cheyenne, Wyoming 82001-4404 INDEPENDENT AUDITOR'S 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 County Commissioners Weld County, Colorado Greeley, Colorado We have audited, in accordance with the auditing standards generally accepted in the United States of America 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 the governmental activities, the bud nem-type activities, each major fund, and the aggregate discretely presented component unit and remaining fund information of Weld County, Colorado (the "County") as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated June 29, 2015. Our report includes a reference to other auditors who audited the financial statements of the Weld County Housing Authority, as described in our report on the County's financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by thcsP auditors Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate i n the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control . 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 and correct, misstatements on a timely basis A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's f i nanci ai 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 was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in the internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify my deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 155 Compliance and Other Matters As part of obtai ni ng reasonable assurance about whether the County's f i nanci ai statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, 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 exprem such an opinion. The results of our tests disclosed no instances of noncompl i ate or other matters that are requi red to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is sold y to describe the scope of our testi ng of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County'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 County's internal control and compliance. Accordingly, this communi cation is not suitable for any other purpose. .tevavAL, Ajax -2) Cheyenne, Wyoming June 29, 2015 156 NMMcGee, Hearne & Paiz, LLP Certified Public Accountants and Consultants Certified Public Accountants and Consultants 314 West 18th Street, Cheyenne, Wyoming 82001-4404 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of County Commissioners Weld County, Colorado Greeley, Colorado Report on Compliance for Each Major Federal Program We have audited Weld County, Colorado's (the "County") compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the County' s major Federal programs for the year aided December 31, 2014. The County's major Federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. The County's basic financial statements include the operations of Weld County Housing Authority, a component unit, who received $2,614,740 in Federal awards which is not included in the County's schedule during the year ended December 31, 2014. Our audit, as described below, did not include the operations of the Weld County Housing Authority because those f i nanci al statements were audited by other audi tors. Alanagement's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its Federal programs. Auditor's Responsibility Our respons bi l i ty is to express an opinion on compliance for each of the County's major Federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary i n the d rcumstances. We believe that our audit provides a rcaonable basis for our opinion on compliance for each major Federal program. However, our audit does not provide a legal determi nation of the County's compl i ance. Opinion on Each Major Federal Program In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended December 31, 2014. 157 Other ,Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as items 2013-004, 2014-001, 2014-002, and 2014-004. Our opinion on each major Federal program is not modified with respect to these matters. The County's response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The County's response was not subjected to the auditing procedures applied i n the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control over Compliance M anagement of the County is responsible for establishing and ma ntai ni ng effective i nternal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major Federal program to determine the auditing procedures that are appropri ate i n the ci rcumstances for the purpose of expressing an opinion on compliance for each major Federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County' s internal control over compl i ance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not al l ow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weaklier, in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and, therefore, material weaknc.mcs or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified a certain deficiency in internal control over compliance as decrri bed in the accompanying schedule of findings and questioned costs as items 2014-001, 2014-003 and 2014-004, that we consider to be a significant deficiency. The County's response to the internal control over compliance finding identified i n our audit is described in the accompanying schedule of findings and questioned costs. The County's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we exprc s no opinion on it. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Cheyenne, Wyoming June 29, 2015 158 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2014 1. SUMMARY OF INDEPENDENT AUDITOR'S RESULTS A. Financial Statements Type of auditor's report issued: Unmodified I nternal control over financial reporti nq: B. n Material weaknesses identified? n Significant deficiencies identified that are not considered to be material weaknesses? Yes Yes Noncompliance mated al to financial statements noted? Yes Federal Awards I nternal control over major programs: X No X None reported X No n Material weaknesses identified? Yes X No n Significant deficiencies identified that are not considered to be material weakncs ? X Yes None reported Type of auditor's report is ied on compliance for major programs: Unmodified n Any audit findings disclosed that are requi red to be reported in accordance with Section 510(a) of OMB Circular A-133? X Yes No Identification of major programs: n n CFDA Numbers 10.561 14.218 93.558 93.568 93.778 N ame of Federal Program or CI uster State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Community Development Block GrantslEntitlement Grants Temporary Assistance for Needy Families (TANF) F) Low -I ncome Home Energy Assi stance Medical Assistance Program (Medicaid; TitleXIX) Dollar threshold used to distinguish between Type A and Type B programs: $1,085,086 Audi tee qualified as low -risk auditee? X Yes No 159 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2014 11. FINANCIAL STATEMENT FINDINGS None III. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS 2013-004: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program - Special Tests Catalog of Federal Assistance (CFDA) Number and Title: #10.561 - State Admi ni strative Matching Grants for the Supplemental Nutrition Assistance Program Federal Agency Name: U.S. Department of Agriculture Pass -Through Entity Name (if applicable): State of Colorado Condition - Of the 25 n c fi les selected for testing, we noted one fi le did not contain the required verification of the applicant's income. Criteria - The County is required to process and store all case file information necessary for eligibility determination and benefit calculation, identifying specific elements that affect eligibility, and notifying the certification unit of cases requiring notices of case disposition, adverse action aid mass change, and expiration. Cause - The County did not properly scan the verification of income into scanned documents or maintain the paper copy to be able to verify that no changes were required to be made to pa-ticipant's eligibility from time of initial application until date of selected payment or to verify the parti ci pant was eligible. Effect - If controls are not in place to ensure adequate documentation is maintained and proper records are kept on file at the County to support eligibility and benefit calculation, the State may be paying benefits for ineligible parti ci pants or at improper amounts. Recommendation - We recommend that the County ensure records are included within scanned documents under the proper client number at the time of original el i gi bi I i ty determination as well as going forward to ensure client records are available for verification and other purposes. Questioned Costs - $0 Auditee Response - Contact: Lennie Bottorff, Fiscal Manager, John Kruse, Admi ni strator-Assi stance Programs Corrective Action Plan: The Department agrees with this finding. We wi I I continue to provide additional training to staff, both new and ongoing income maintenance technicians (I MT), on the importance of i magi ng and documenting in Case comments why ad ons are being taken in the Colorado Benefit Management System. In addition, we will continue to measure the success of the training and processing via I MT case reviews. Anticipated Completion Date: December 2015 160 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2014 2014-001: Temporary Assistance for Needy Families (lANF) — Special Tests and Provisions Catalog of Federal Assistance (CFDA) Number and Title: #93.558, #93.714, #93.716 - Temporary Assistance for Needy Families (TAN F) Cluster Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Condition - Of the 40 participants selected for testing, we were unable to perform the testing per the compliance requirements for Income Eligibility and Verification System (I EV S) discrepancy reports on al I selections. Criteria - The County is required to initiate a notice of case action or an entry in the case record that no case action is necry within 45 days of its receipt of an I EV S discrepancy report. Under certain circumstances, action may be delayed beyond 45 days for no more than 20% of the information items targeted for follow-up. Cause - The County was unable to provide us with the I EVS discrepancy reports for all selections Effect - If the County cannot provide the IEVS discrepancy reports, we cnnot verify if the existing controls are effective or if they are even in place. If the control is ineffective or does not exist, the County may pay or over compensate a partidpant who should not be receiving benefits. Recommendation - We recommend that the County ensures I EV S discrepancy reports are reviewed and have cleared within the required 45 days In addition, we recommend that any current outstanding I EV S discrepancies outstandi ng i n excess of 45 days be cl eared immediately. Questioned Costs - None Auditee Response - Contact: Lennie Bottorff, Fiscal Manager, John Kruse, Administrator -Assistance Programs Corrective Action Plan: The Department agrees with this finding. This is largely due to the high caseload volume and casdoad growth. The Department has modified its business process design and hopes to process I EVS hits within the given timelines within the next three to four months The Department is also looking at creating better reports to simplify reviewing I EV S hits. Anticipated Completion Date: December 2015 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2014 2014-002: Temporary Assistance for Needy Families (TANF) — Special Tests and Provisions Catalog of Federal Assistance (CFDA) Number and Title: #93.558 - Temporary Assistance for Needy Families (TANF) Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Condition - During the year ending December 31, 2014, we noted that Tier II ease reviews performed by the County did not align with the sample provided by the State as required by the Colorado Work Verification Ran. Criteria - To comply with the Colorado Work Verification Ran, 5% of Colorado Works Basic Cats Assistance, State and County Diversion cases statewide must be reviewed monthly. The State of Colorado, through the Colorado Benefits Management System (CBMS) reporting system - COGNOS, provided to the County a list of all files needing a Tier II review monthly. Cause - The County was completing a race review of files provided through the COGNOS system; however, this review did not comply with Tier II requirements outlined in the Colorado Work Verification Ran. Effect - By not reviewing the files requested by the State of Colorado at the Tier II Level, the County is out of compliance of the Work Verification Ran. The penalty for failure to comply with the Work Verification Ran may be not leas than one percent and not more than five percent of the awaded amount (42 USG 601, 602, 607, and 609). Recommendation - We recommend that the County access the CBMS COGNOS and complete all Tier I I file reviews requested by the State of Colorado. Questioned Costs - $0 Auditce Response - Contact: Lennie Bottorff, Fiscal Manager, John Kruse, Administrator -Assistance Programs Corrective Action Plan: The Depatment agrees with this finding. The Assistance Payments Division and the Employment Services Division will work collaboratively to ensure that the required reviews are completed for al cascs identified in the Cognos 5% Sampling Report, reviewing the aspects under the control of each Division. Anticipated Completion Date: December 2015 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2014 2014-003: Low -Income Home Energy Assistance Program (LEAP) — Allowable Costs / Cost Principles and Eligibility Catalog of Federal Assistance (CFDA) Number and Title: #93.568 - Low -Income Home Energy Assistance Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): State of Colorado Department of Human Services Condition - The County contracted with Discovery Goodwill to manage the LEAP program, this included eligibility determinations as well as entering the applicable information into CFMS for payment. However, the County did not perform any independent checks on Discover Goodwill, during the period under audit, to verify that Discovery Goodwill was properly determining eligibility and program payments were correct. Criteria - The A-102 Common Rule and OMB Circular A-110 (2 CFR part 215) require that non - Federal entities receiving Federal awards (i .e., audi tee management) establish and mai ntai n internal control designed to rocronably ensure compliance with Federal laws, regulations, and program compliance requirements. While outsourcing the management of the program is not a problem, since the County is still ultimately responsible for the Federal funds, they sti l l need to perform checks to determine whether procedures are being followed as intended. Cause - The County outsourced the management of the program; however, the County failed to implement controls to appropriately oversee the activities of the service organization. Effect - Without performing independent checks, the County is unable to verify that eligibility is correctly determined and program payments are proper. Recommendation - We recommend that the County develop controls to review the services performed by the service organization are con stent with the program requirements. Questioned Costs - None Auditee Response - Contact: Lennie Bottorff, Fiscal Manager, John Kruse, Administrator -Assistance Programs Corrective Action Plan: The Department agrees with this finding. The Department has used the State of Colorado case reviews for Weld County and other counties that Discover Goodwill contracts with as evidence that eligibility is correctly determined and program payments are proper. Starting next LEAP season, the Department will be doing random case reviews of Discover Goodwill's eligibility determination and program payments. Anticipated Completion Date: December 2015 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2014 2014-004: Community Development Block Grants / Entitlement Grants — Reporting Catalog of Federal Assistance (CFDA) Number and Title: #14.218 - Community Development Block Grants/ Entitlement Grants. Federal Agency Name: U.S. Department of Housing and Urbai Development Pass -Through Entity Name (if applicable): N/A Condition - While gaining an understanding of the processes i n place surrounding the review and preparation of the required quarterly reports, we noted that the reports are prepared by the Housing Authority Executive Director and they are not reviewed prior to being submitted to HUD. Additionally, through testing of the required reports, we noted that the balances per the report did not agree to Banner General Ledger Mates. Criteria - Per 75 FR 64337, Section O, Reporting, the County must submit quarterly performance reports. All information reported on the report should be complete and accurate. Cause - The department size and the volume of work hinder the availability of a staff member to perform an independent review of HUD reports prior to submission. Effect - The submission of incorrect information to HUD could impact the amount of funding received in the future. Recommendation - We recommend that the County create a review process to ensure that reports are reviewed and compared to the general ledger prior to submission to HUD. Questioned Costs - $0 Auditee Response - Contact: Barbara Connolly, Controller Corrective Action Plan: We agree with thisfinding. f i ndi ng. Weld County Accounting Department has set up a process in which we will confirm request for payments agree with the General Ledger. Anticipated Completion Date: Immediately. WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR FEDERAL AUDIT FINDINGS For the Year Ended December 31, 2014 Findings 2013-002: Temporary Assistance for Needy Families (TANF) - Special Tests and Provisions Catalog of Federal Assistance (CFDA) Number and Title: #93.558 Temporary Assistancefor Needy Fami lies (TANF) Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Human Services During the year ended December 31, 2013, no case files were reviewed as required by the Colorado Work Verification Plan. Status Due to continued staffing shortages and increased volume, we haven't yet fully implemented all of the safeguards that would prevent reoccurrence of these situations. However, we have made significant progrc ; toward resolving this issue, and will continue our attempts to achieve full staffing and optimal i mpl ementati on. See Finding 2014-002. 2013-003: Temporary Assistance for Needy Families (TANF) — Special Tests and Provisions Catalog of Federal Assistance (CFDA) Number and Title: #93.558 Temporary Assistance for Needy Fami lies (TANF) Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Human Services Of the 40 participants selected for testing, we noted 11 instances of participant files that contained Income Eligibility and Verification System (IEVS) discrepancy reports that were not dared by the County within the requi red ti mef rame of 45 days. Due to continual staffing shortages and increased volume, we haven't yet fully implemented Al of the safeguards that would prevent reoccurrence of these situations. However, we have made significant progress towad resolving this issue, and wi I I continue our attempts to achieve full staffing and optimal i mpl ementati on. See Finding 2014-001. 2013-004: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program - Eligibility Catalog of Federal Assistance (CFDA) Number and Title: #10.561 State Admi ni strati ve Matching Grants for the Supplemental Nutrition A ssi stance Program Federal Agency Name: U.S. Department of Agriculture Pass -Through Entity Name (if applicable): Colorado Department of Human Services Of the 25 case files selected for testing, we noted one file did not contain the required verification of the applicant's income. Due to continued staffing shortages and i ncrcascd volume, we haven't yet fully implemented Al of the safeguards that would prevent reoccurrence of these situations. However, we have made significant progress towad resolving this i sq re, and will continue our attempts to achieve full staffing and optimal i mpl ementati on. See Finding 2013-004. 165 166 Hello