Loading...
HomeMy WebLinkAbout20162354.tiffCAFR _ 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT * YEAR ENDED DECEMBER 31 '1 PAGE OF DOCUMENT INCLUDED IN PAPER FILE. REMAINDER RETAINED ELECTRONICALLY IN TYLER. WELD COUNTY STATE OF COLORADO PREPARED BY THE DEPARTMENTS OF ACCOUNTING AND FINANCE LEADING WITH RESPONSIVE, INNOVATIVE & COST EFFECTIVI 2016-2354 7 -Q-nset2en Tre mitorAtan COLORADO TABLE OF CONTENTS INTRODUCTORY SECTION Table of Contents Letter of Transmittal 1 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting 13 Organization Chart 14 Principal County Officials 15 FINANCIAL SECTION Independent Auditors' Report 17 Management's Discussion and Analysis 19 Basic Financial Statements Government -We ide Financial Statements: Statement of Net Position 99 Statement of Activities 30 Governmental Fund Financial Statements: Balance Sheet 32 Reconciliation of Total Governmental Fund Balances to the Statement of Net Position 34 Statement of Revenues, Expenditures and Changes in Fund Balance 36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 38 Proprietary Fund Financial Statements: Statement of Net Position - Proprietary Funds 39 Statement of Revenues, Expenses and Changes in Net Postion - Proprietary Funds 40 Statement of Cash Flows - Proprietary Funds 41 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position 42 Statement of Changes in Fiduciary Net Position 43 Notes to the Financial Statements 44 Required Supplementary Information Other Than MD&A: Required Supplementary Information Pension Trust 83 Other Post Employment Benefits 84 Modified Approach for Infrastructure Assets 85 i Schedules of Revenues, Expenditures and Changes in Fund Balances -Actual and Budget Major Funds: General Fund 87 Public Works Fund 92 Social Services Fund 94 Human Services Fund 96 Contingent Fund 98 Supplemental Information: Combining Statement of Non -major Governmental Funds: Explanation of Funds 99 Combining Balance Sheet 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 106 Schedules of Revenues, Expenditures and Changes in Fund Balances -Actual and Budget Capital Expenditures Fund 108 Non -major Governmental Funds: Special Revenue Funds: Conservation Trust Fund 109 Public Health Fund 1 10 Solid Waste Fund 111 Bebee Draw Fund 112 Pioneer Community Law Enforcement Fund 113 South West Law Enforcement Fund 114 Component Units: Housing Authority 115 E-911 Authority Fund 116 Local Highway Finance Report 1 18 Combining Statements of Internal Service Funds: Combining Statement of Net Position - Internal Service Funds 120 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 122 Combining Statement of Cash Flows - Internal Service Funds 124 Combining Statement of Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities - Fiduciary Funds 126 ii Schedule of Revenues, Expenses and Changes in Net Position -Actual and Budget Enterprise Fund and Internal Service Funds: Enterprise Fund: Northern Colorado Regional Crime Lab 127 Internal Service Funds: Motor Vehicle Fund 128 Health Insurance Fund 129 Insurance Fund 130 Phone Service Fund 131 STATISTICAL SECTION Net Position by Component 134 Changes in Net Position 136 Fund Balances of Governmental Funds 138 Changes in Fund Balances, Governmental Funds 140 Assessed and Estimated Actual Value of Property 142 Property Tax Levies - Direct and Overlapping Governments 144 Principal Taxpayers 145 Property Tax Levies and Collections 146 Direct and Overlapping Governmental Activities Debt 147 Legal Debt Margin Information 148 Private Purpose Revenue Bonds 150 Demographic and Economic Statistics 151 Principal Employers 152 Full-time Equivalent Employees by Function/Program 154 Operating Indicators by Function/Program 156 Capital Asset by Function/Program 158 Insurance in Force 160 SINGLE AUDIT Schedule of Expenditures of Federal Awards 161 Notes to Schedule of Expenditures of Federal Awards 164 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards 165 Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 167 Schedule of Findings and Questioned Costs 169 Summary Schedule of Prior Federal Audit Findings 174 iii iv DEPARTMENT OF FINANCE AND ADMINISTRATION PHONE (970) 356-4000, EXT.4218 FAX: (970) 352-0242 P.O. BOX 758 GREELEY, COLORADO 80632 June 25, 2014 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, 2013, 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, 2013 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. 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, 2013, 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. Honorable Board of Commissioners 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 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 2013 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. Honorable Board of Commissioners 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- 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 2013, 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 2013: • Assessed value increased 9% or $.605 Billion primarily from oil and gas production. • Implemented the Strategic Investment Plan for the Future of Weld County. • Funding of innovation and technology projects identified. • Funded the oil and gas revenue fluctuation reserve in the Contingency Fund. • Opened a new Regional Crime Lab. • Added a SO Deputy Sheriff position for fugitive transports, and one for fugitive warrants. • Added two additional Planner II positions to accommodate new development. • Funded a Haul Route Program (HARP) to improve county roads impacted by the energy industry due to new oil and gas drilling exploration for a third year. • Began Phase I of three phases of WCR 49 improvements. 4 Honorable Board of Commissioners • Funded current and past administrative costs of the Weld County Retirement Plan. • Implemented a radio replacement program in capital improvement plan. • The Weld County Regional Communications Center (WCRCC) moved to a new organizational structure with Weld County operating the WCRCC and dispatching all public safety agencies in the county from a new dispatch center with state of the art equipment. • Weld County terminated the outsourcing contract for information technology and will provide information technology services with county staff effective January 1, 2014. FACTORS AFFECTING FINANCIAL CONDITION Economic Conditions and Outlook. The United States economy continues to grow at a modest pace. Although weighed -down by changes in federal fiscal policy and continuing uncertainty, the nation's private sector continues to heal from the financial crisis and appears ready to gain momentum. Private sector gross domestic product and employment is expanding, while consumers continue to simultaneously spend and reduce debt. The expansion in the nation's manufacturing sector has regained its footing, the nation's banks have rebuilt their balance sheets, and corporate profits continue to grow. Although still several years away from a full recovery, the nation's housing market has begun to emerge as an economic bright spot with fewer distressed markets, increasingly stronger sales of existing homes, and moderate levels of new construction. In addition, the nation's equity markets have experienced strong growth in 2013. Growth will remain subdued through early 2014, as slow growth in the global economy and public -sector fiscal contraction in the United States weigh down the recovery's momentum. The European recession, concerns about unsustainable real estate speculation in China, and the uncertainty generated by geopolitical conditions in South Korea, Iran, and Syria are weighing on business confidence. However, federal fiscal contraction in the United States is the chief impediment to faster growth in the short term. The American Taxpayer Relief Act of 2012 resolved some, but not all, of the uncertainty related to federal fiscal policy. The combination of continued uncertainty, higher taxes, and lower spending is estimated to reduce growth in gross domestic product. The economic drag of federal fiscal policy should mitigate significantly by 2014. Congress is authorizing spending authority for the next federal fiscal year, retaining the magnitude of the sequestration spending cuts, but allowing for slightly more flexibility in their implementation. Economic growth is expected to accelerate to healthier rates in 2014 and 2015, as the recovery in the private sector matures and the drag from the uncertainty in the public sector moderates. Recovery in the private sector is still dependent on continued loose monetary policy, and dependents on the Federal Reserve continuing its expansionary monetary policy, keeping interest rates low through 2014. Honorable Board of Commissioners Colorado's economy continues to improve at a faster pace than the nation as a whole. Employment growth is helping to lower the unemployment rate and support growth in retail sales. Price appreciation in the Colorado housing market is among the strongest in the nation, which has caused the housing market to go from being a drag on the Colorado economy to helping boost it. Federal housing policies aimed at a national housing market still struggling from the recent recession are helping Colorado homeowners build equity in their homes. The agricultural sector suffered through a drought, which reduced production but also helped lift prices. Colorado exports continue to grow despite a weak global economy. The underlying strength of the Colorado economy will be enough to keep employment growth positive in 2014 even as tax increases, automatic spending cuts, and continued uncertainty from federal fiscal policy slows growth. The effects of the sequester will be felt more in regions of the state with a high concentration of federal employees and in regions that rely on federal government services, such as those with national parks. While the state economy is growing at a moderate pace, there is significant variation in economic growth across regions of the state. The economies of the Denver Metro area and the northern Front Range are growing faster than the state economy. Employment in those regions is growing steadily and retail sales are increasing at healthy rates. A tight housing supply and low interest rates are causing housing prices to appreciate. The northern region's economic recovery is one of the strongest in the state. Employment is showing moderate gains and consumers are spending money in the region as retail sales are strong amidst a relative strong housing market. The region's housing industry is performing well. Similar to the other regions in state, new nonresidential construction remains low. The Bureau of Labor Statistics reported that the Fort Collins -Loveland and Greeley areas added over 8,000 new jobs in 2013. The Greeley MSA's unemployment rate was 6.7 percent in February, 2014, lower than the 6.8 percent statewide rate. With over 4,000 farms in the region, agriculture is a key component of the northern region's economy. Livestock production was up 6.4 percent over the prior -year period. The number of cattle and calves on feed for the slaughter was estimated at 1,160,000, up from 1,090,000 a year ago according to state data. Oil extraction in Weld County continues to boost job and income growth. The big news for Weld County economically is that Weld County is on pace to produce almost 80 percent of the state's oil output this year, bringing with it continued development and challenges with which the industry and government officials must grapple. Over 90 percent of the drilling in the state is going on in Weld County this year. The oil and gas development has lead to the creation of over 3,000 new jobs, poured millions into the local economy from royalty payments, and has increased the assessed value for the property tax bases of every local government in Weld County. The development is anticipated to continue for the next few years, as Noble Energy, one of the biggest energy companies working in the Denver-Julesburg Basis of the Niobrara formation, announced in June that it expects to triple its oil and gas output in the area over the next five years. This will bode well for Weld County's economy and property tax base. 6 Honorable Board of Commissioners LONG-TERM FINANCIAL PLANNING As Weld County looks to 2014 and beyond, a number of challenges face the Board of County Commissioners, other elected officials, and staff to meet the ever changing and growing demands of county citizens to maintain the quality of service the citizens have grown to expect from their county government. The County is experiencing the biggest oil and gas boom in its history. The additional production of oil and gas is resulting in significant increases in the County's assessed value with the oil and gas production exceeding fifty -percent of the County's total assessed valuation. Because of the volatility of production levels and price fluctuations of the oil and gas production, the County must 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 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. A long-term strategy of investment in the County's infrastructure, technology and innovation, staff training and development, and economic development for diversification of the local economy can all have a demonstrable long-term payoff. A good county transportation system facilitates the movement of goods and services. Investment in innovation and technology will lay the foundation for new and more efficient governmental services being provided by Weld County Government. Staff development ensures that the County's employees have the skills required to provide the very best service possible to the citizens of Weld County. 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. 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 also when it eventually ends. The Strategic Investment Plan for the Future of Weld County is a continuation of Weld County's historical discipline of fiscal stability. 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. This financial discipline has enabled the County to embrace the changes that are reshaping all aspects of our lives - from how we live and work to how we share information and communicate, and in many ways fundamentally changing the public's expectations of, and relationship with, government. Honorable Board of Commissioners The County will face budgetary challenges over the next few years that will involve rising costs, particularly if inflation returns as the Federal Reserve discontinues its economic stimulus via low interest rates, and the reality of decreasing federal revenues in the future. The County's budget must continue to reflect a multi -year strategic approach to managing county resources within the ongoing challenging economic environment. The primary goals of this strategy are to preserve core services, maintain the commitment to the County's capital program, and accommodate the impacts of the energy boom in Weld County. The County has been able to accomplish these ob- jectives while adhering to its fund balance and reserves policy that specifies that a large contingency fluctuation reserve be maintained as a buffer for unexpected fiscal events and the fluctuation of oil and gas assessed values. The County's proactive management of its cost structure using this multi -faceted approach is assurance of its commitment to maintaining fiscal health and stability of the County. A significant measure of Weld County's commitment to providing residents with quality services will be how well essential infrastructure is maintained and renewed. The County will continue to be a responsible steward of public assets. 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 similar, annual five-year Capital Improvement Program will be used to assess the condition of all facilities and to plan necessary repair and maintenance, as well as fund new facilities needed, such as an expanded correctional facility. Included in the capital plan will be funding to upgrade and replace the County's critical communication infrastructure and systems. The County will continue to use a proactive approach to maintain the physical environment, modernize and replace aging facilities and equipment, and maximize the public return on investments. Weld County must continue to achieve operational efficiency through continuous efforts to improve, and innovate, thereby maximizing value for taxpayers. By continuously working to improve the quality, efficiency and cost effectiveness of its services, County staff will maximize value for taxpayers and increase the ability to meet emerging public needs while living within our financial resources. The pace of technological change and innovation in the world around us is accelerating and Weld County must continue to draw on the expertise of its workforce to take advantage of new ideas and tools to improve service delivery and operational efficiency. The County must continue to use the business process analysis effort started in 2013, as an effective tool to meet the enormous challenges of revenue constraints, increasing operational costs and growing public demands. The business process analysis is the fundamental rethinking and redesign of the processes, tools and structures used to operate a program or service to bring about dramatic improvements in performance. When new tools or methods are discovered, business process analysis can help capitalize on them to improve operations and achieve the best results for Weld County residents. Managers at the County are expected to create and maintain a workplace that supports a culture of continuous improvement and innovation. This can be achieved through employee suggestions, open communication, training, and innovation and technology projects, among other opportunities. 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 8 Honorable Board of Commissioners 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 County must be the center of information services innovation for advancing the delivery of county services, anytime and anywhere. The County must be continually focused on providing superior information services to support the multitude of county services and programs offered. To keep up with advances in information technology (IT), the County effective January 1, 2014, will no longer outsource its IT function through ACS/Xerox, but rather perform all IT functions with county staff under the leadership of a new Chief Information Officer (CIO), who will maintain strategic oversight of the technological direction. The County's goal is to provide a reliable, 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. What is occurring in the world around us is that the pace of change in our world is accelerating exponentially. This dynamic is challenging all of us as individuals and as organizations, and shows no sign of abating. In fact, the pace of change underway now in our world continues to intensify. Fueled by technological advances, we are quickly changing and reshaping all aspects of our lives from how we live and work to how we share information and communicate. These technological advances in many ways are fundamentally changing the public's expectations of and relationship to their government. Beside technological changes, we can anticipate that as the federal government deals with deficit spending issues there will be significant programmatic and spending changes as a result of decisions made in Washington. These could require counties to profoundly change not just how to provide services, but what services the County can or, in some cases, must provide. In addition to adjusting to new roles and responsibilities, the County must also take advantage of opportunities to improve how and where to serve the public. Departments throughout Weld County Government need to find ways to deploy new technology tools to expand employees' flexibility, allowing them to become more productive and better serve our customers in the community. This means changing the way county services are designed by continually looking for more opportunities to streamline operations and addressing public needs in innovative, comprehensive ways. It may mean changing how the County communicates with the public by expanding the services and information the public can find online and through the social media. Change will be the constant as we face 2014 and the future. However, one aspect that will not change is our commitment to fiscal discipline. Even with the added property tax resources from oil and gas, we must continue to be good stewards of the taxpayers' money. We must continue to deliver cost effective and efficient county services, maintain prudent reserves, and invest in the future of our infrastructure. We will do this by working to ensure that Weld County Government remains fiscally sound, operationally strong, and able to meet the core needs of Weld County residents within available resources. We must continue to monitor changing economic conditions and the uncertainties surrounding key state and federal revenue sources. 9 Honorable Board of Commissioners For Weld County Government our greatest asset is our ability to combine the expertise and dedication of our employees, the pragmatic approach to solving problems, the strong leadership of our elected officials and department managers, and our commitment to a culture that embraces change. With these organizational strengths, we can all be confident that Weld County Government as an organization will meet the challenges of the future. RELEVANT FINANCIAL POLICIES The major factors impacting the County's financial planning continue to be related to the continuing recovery of the economy, 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. The economy is no longer in a free fall and there are signs of economic recovery cautiously returning, such as lower unemployment rates, residential and non-residential construction activity becoming more evident, population growth, and continued oil and gas development. Given these indicators to Weld County's economic growth and recovery, there is reason to be cautiously optimistic about the economic future of Weld County. 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 four years. For the 2014 budget, oil and gas assessed values are up over a half billion dollars with a 15.33 percent increase, even with the significant drop in gas prices in 2012. 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 has had to add significant resources to the Public Works budget again in 2014 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. The Public Works 2014 budget is up over $14 million compared to last year. 2014 holds great opportunity and concern for the Weld County Department of Human Services. It will be the first full year of the department's implementation of an Electronic Document Management System, enabling it to scan images of all documents that are presented to it, at the time they are received, so that they can be stored and retrieved electronically, rather than copying, filing, and storing physical documents. The department will also participate in the statewide Title IV -E (Foster Care and Adoption Assistance Entitlement Grant) Waiver Project, designed to provide permanent connections for children entrusted to our care. Senate Bill 12-078 mandates reporting of abuse of at -risk adults and could significantly impact the workload of Adult Protection Caseworkers. The department is reorganizing its staff in 10 Honorable Board of Commissioners anticipation of this increase, so that it can be prepared to provide services needed to address this issue. Finally, and likely most significantly, 2014 will bring implementation of some of the most impacting aspects of the Affordable Care Act. Human Services anticipates the requirement of citizens to apply for Medicaid in order to be eligible for services under the Health Exchange and the increase in income levels eligible for Medicaid will create an increase in caseload of 25% - 30%. The department is hiring, equipping, and training staff in anticipation of this increase, so that it can be prepared when it arrives. Finally, Weld County experienced historic flooding of the five major tributary rivers running through Weld County in September, 2013. Over 20 major bridges and 150 miles of roadways were damaged. The emergency repairs have cost in excess of $12 million and it is estimated that with permanent repairs and flood mitigation projects the costs could exceed $20 million. Due to the flooding the Contingency Fund may have to be used to fund some flood mitigation efforts in 2014, depending on what FEMA approves. This will result in a transfer of funds from the Contingency Fund and supplemental appropriations in the Public Works Fund. Some of the Public Works grant projects may have to be delayed in 2014 to accommodate the flood repairs and mitigation projects. FEMA will pay 75% of the eligible flood repairs and mitigation costs. The State of Colorado will pay 12.5%. As indicated above the latest estimates of costs indicate the amount could exceed $20 million in total costs with Weld County paying 12.5% or over $2.5 million. 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, 2012. This was the thirth-first 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 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. 11 Honorable Board of Commissioners 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 2013 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, 2013. 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, Donald D. Warden, Director of Finance 12s WELD COUNTY HOME RULE GOVERNMENT C 1 _ C Gl l� JE la c QI 0V� 8 FL) c . � C y C • W W a C - - -▪ 0 Cu J i 0 VI 0 • o • 2TS Ts e Ll o C U a Q I- Q E CS) CO C N J) a, E W O O n) U c t C o o ce w 2 CO U) .O a, E 2 ai a) U, L . O - a E 2 C, W LIU r 0 a) L Os C� E 0 Co L c a c E o U ° 45 - O) CO (!3 .- CD C) E i ._ 0 C� Environment ( • r 0 " c co flu a coc C) LL d_ c c U 0 C) C� .0? -e_ 0 U a CL d) cp pc" 0 m j o V V tI LU o a r r" P. to 0m u)z loco 4E) cm 0 s a_ 0) a--, C E Z5 Os DS o -o. - 2 4J C r C 0 'a O 0 .N 0 ca.,.., � N o E —QU Coo, La C ▪ o r • O I" C L maw 0 CO J N U c0) Li a)CL as CO can C t4 d r Extension Director Extension Service 0 m as U- L C a Administration Finance Division 0 .V 0 (1).C cn c mosir? FA E d ca L O a C ~ C us .a o rn U5 as 0 C 12 to I-. co J 0 .cam 0 o.-': [CCV CU Ca U) r 0,'0 . t i t r d a) N v) 0 as al La a� U Ci U -E' ii: . co '3) o U m 14 COUNTY OF WELD STATE OF COLORADO PRINCIPAL COUNTY OFFICIALS December 31, 2013 Board of County Commissioners Douglas Rademacher Sean Conway Barb Kirkmeyer Bill Garcia Mike Freeman 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. 15 16 FINANCIAL SECTION NEIPMcGee, Hearne & Paiz, LLP Certified Public Accountants and Consultants 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, 2013, 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 fmancial 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 $2,397,187 and whose revenues totaled $2,596,771 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 fundinformation of the County as of December 31, 2013, 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 28, the schedules of funding progress and employer contributions, the condition assessments of infrastructure, and the budgetary comparison information on pages 83 through 98 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 comprise the County's basic financial statements. The accompanying supplementary information (the combining and individual nonmajor fiend 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 25, 2014, 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. tc, /6„ 7-1.tbmq, Cheyenne, Wyoming June 25, 2014 14' 18 MANAGEMENT'S 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, 2013. 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 by $410.8 million at the end of 2013. Of this amount, $58.8 million may be used to meet the government's ongoing obligations to citizens and creditors. The remaining $352.0 million is invested in capital assets or restricted by law. • The County's General Fund balance was $21.5 million as of December 31, 2013. Of this amount, $0.7 million for non -spendable assets, $7.1 million is restricted; $2.1 million committed for economic development; $11.5 million for encumbrances. The remaining $.2 million is available to meet the ongoing obligation to citizens and creditors. • The 2013 General Fund of balance of $21.5 is 21.0% of 2013 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 2014. 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). 19 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, roads and bridges, auxiliary, culture and recreation, and health and human services. 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 E-911 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 are 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. 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 funds 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 fund 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 fund 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 non - major funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 32 through 38 of this report. 20 Proprietary funds. Weld County maintains two different types of proprietary funds. Enterprise funds 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 funds 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 funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Paramedic Services Fund, which is considered to be a major 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 39 through 41 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 42 through 43 Budgetary Comparisons. Weld County adopts an annual appropriated budget for all of its funds. A budgetary comparison statement has been provided for all major funds on pages 87 to 98 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 fund financial statements. The notes to the financial statements can be found on pages 45 through 81 of this report. Other information. The combining statements referred to earlier in connection with non -major governmental funds and internal service funds are presented following the notes to the financial statements and can be found on pages 104 through 114 and 120 through 131 respectively. 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, 2013, assets and deferred outflows exceeded liabilities and deferred inflows by $410.8 million. The following table provides a summary of the County's governmental and business -type net assets for 2012 and 2013. 21 Table 1 Net Position (in Millions) Governmental Activities Business -type Activities Total 2012 2013 2012 2013 2012 2013 Assets Current and other assets $240.45 $286.43 $.00 $.00 $240.45 $286.43 Capital assets 260.63 270.07 .00 .00 260.63 270.07 Total assets $501.08 $556.50 $.00 $.00 $501.08 $556.50 Liabilities Current and other liabilities $123.97 $16.79 $.00 $.00 $123.97 $16.79 Long-term liabilities 8.38 8.93 .00 .00 8.38 8.93 Total liabilities $132.35 $25.72 $.00 $.00 $132.35 $25.72 Deferred Inflows Property Taxes .00 119.99 .00 .00 .00 119.99 Total Deferred Inflows .00 $119.99 .00 .00 .00 $119.99 Net Position Invested in capital assets $260.63 $270.07 $.00 $.00 $260.63 $270.07 Restricted 57.47 81.89 .00 .00 57.47 81.89 Unrestricted 50.63 58.83 .00 .00 50.63 58.83 Total net position $368.73 $410.79 $.00 $.00 $368.73 $410.79 A portion of Weld County's net position (14.3%) represents unrestricted net position of $58.83 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 (65.7%) 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 $81.89 million of the County's net position (19.9%) represents resources that are subject to external restrictions on how they may be used. Included in this category is the TABOR emergency reserve of $6.0 million, $4.73 million in reserves for insurance claims, $5.74 million for health, economic and social assistance programs, and $65.42 million for road and bridge maintenance fund as required by state law. At the end of 2013 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 $42.06 million in 2013. The following table indicates the changes in net position for governmental and business -type activities in 2012 and 2013. 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 Regional Forensic Laboratory Paramedic services Total expenses Increase (decrease) in net position before Transfers Transfers Increase (decrease) in net position Net Position Beginning Net Position Ending Governmental Activities Business -type Activities Total 2012 2013 2012 2013 2012 2013 $45.40 $51.56 $1.95 $0.00 $47.35 $51.56 23.82 32.24 0.00 0.07 23.82 32.31 88.24 9.71 16.65 105.94 9.64 22.79 0.00 0.00 0.00 0.00 0.00 0.00 88.24 9.71 16.65 105.94 9.64 22.79 $183.82 $222.17 $1.95 0.07 $185.77 $222.24 $34.79 44.26 37.22 1.29 36.97 7.30 0.00 $43.44 47.93 39.95 1.52 39.34 7.93 0.00 0.00 0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.00 $0.00 0.00 0.00 0.00 0.00 0.00 0.07 2.85 0.00 $34.79 44.26 37.22 1.29 36.97 7.30 0.00 $43.44 47.93 39.95 1.52 39.34 7.93 0.07 2.85 0.00 $163.83 $180.11 $2.85 $0.07 $164.68 $180.18 21.99 42.06 4.15 0.00 (0.90) 0.00 (4.15) 0.00 21.09 42.06 0.00 0.00 26.14 42.06 (5.05) 0.00 21.09 42.06 342.59 368.73 5.05 0.00 347.64 368.73 $368.73 $410.79 $0.00 $0.00 $368.73 $410.79 Governmental Activities. Governmental activities increased Weld County's net position by $42.06 million in 2013. Key elements of this increase are as follows: • Total revenues were up $38.35 million, 20.9% from the prior year; primarily due to increase in property taxes ($17.70 million) other general revenue ($6.14 million) charges for services ($6.16 million) and Operating grants and contributions ($8.42 million). • Expenses totaled $180.11 million. This represents a 9.94% increase, with increases in general government ($8.65 million), public safety ($3.67 million), health and welfare ($2.37 million) and streets and highways ($2.73 million). 23 Business -Type Activities. The County's only business -type activity, Northern Colorado Regional Forensic Laboratory, net assets did not change as a result of 2013 activity. The crime Lab began operations in August of 2013 and all operating expenditures were reimbursed by grant funds. FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS As noted earlier, Weld County uses fund 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 2013, the combined ending fund balance of County governmental funds was $136.11 million. Of this amount the approximately $2.0 million represents an investment in non - spendable items ($1.35 million inventory, $.20 million long term receivable and $.45 million in prepaid expenses). Another $64.82 million of fund balance is restricted use for emergencies ($6 million) public works ($51.11 million) health, welfare and economic assistance ($6.25 million), and other programs ($1.46 million). Fund balance committed to economic development ($2.09 million), capital projects ($18.82 million), contingencies ($35.00 million) and environmental conservation ($1.69 million) is $57.60 million. Another $11.53 million is assigned to budget appropriations and $0.16 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 $21.57 million as of December 31, 2013, a small increase over the $21.13 fund balance as of December 31, 2012. General fund revenues were up with increases in property taxes ($15.0 million) and intergovernmental revenues ($2.67 million). General fund expenditures were up in 2013 in the area of general government, public safety and net transfers out to other funds. 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 9.9% of total 2013 expenditures, while total fund balance is 21.02% 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 $52.32 million in fund balance at the end of 2013. This amount was $18.59 million more than the previous year. Revenues in the Public Works fund were up 2013 with a major increase from oil and gas lease revenue to the fund and an increase in property tax 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 $3.24 million balance at the end of 2012 down $1.77 from its balance as of December 31, 2012. 24 4 Human Services Fund. The Human Services Fund accounts for various Federal and State human services grants. Primary funding 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 increased by $6.98 million in 2012. 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 construction of the crime lab, 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 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 five internal service funds. Information on these funds is aggregated in the Proprietary Fund financial statements. GENERAL FUND BUDGETARY HIGHLIGHTS Comparison of Total Fund Balances as of December 31, 2012 and 2013 $60 $50 $40 $30 $20 $10 General Fund Public Works Social Services Human Contingent Capital Other Govt. Services Fund Projects Funds 2012 2013 The County's budget is prepared according to Colorado statutes. The most significant budgeted fund is the General Fund. In December of 2012, the Board of County Commissioners appropriated $95.67 million for general fund expenditures and other financing uses for 2013. Table 3 Revenue and other financing sources Expenditures and other financing uses 2013 General Fund Budget (in Millions) Original Final Budget Actual Budget Amendments $94.13 $9.82 $103.95 $103.17 $95.67 $15.76 $111.43 $102.72 During 2013 mid -year budget amendments included: • $1.1 million for the engineering design work for WCR 49 • $1.0 million transferred to Retirement Fund to reimburse for past administrative expenses • $1.1 million transferred to Motor Pool Fund for additional equipment • $3.35 million transferred to Capital Expenditure Fund for construction of the back-up dispatch center, crime lab, lining of gravel pits, and special projects • $1.8 million for communications equipment, computer equipment, and software • $1.6 million for unanticipated grants • Supplemental appropriations were made to various departments for salary and benefit reallocations. The increase was possible because of excess fund balance ($5.9 million), various departments under spending their budgets, and additional unanticipated revenues. Those revenues include building inspection fees from oil and gas wells ($1.2 million), Clerk and Recorder fees from vehicle registration ($0.75 million), Treasurer's fees ($0.4 million), and unanticipated grant revenues ($1.6 million). 2 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, 2013 totals $270.07 million (net of accumulated depreciation). This investment includes all land, buildings, machinery, equipment, intangible assets and infrastructure. Total capital assets increased 2.98% in the current fiscal year. Major capital asset events during the current fiscal year include the following: • Road construction or major improvements totaling $12.45 million. • Lining of gravel pits for water storage $2.9 million • Upgrade of communications towers $2.5 million • Construction of the new Northern Colorado Regional Forensic Laboratory $3.9 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, 2013, 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 $213.6 million in 2013. The county currently has no debt subject to the limitation. No new debt was issued in 2013. Additional information on Weld County's debt can be found in Note 8. 27 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 2014 budget. • Complete road and bridge permanent repairs and mitigation projects resulting from the September, 2013 flooding • Assessed value increased 9.29% or $605.5 million primarily from oil and gas production • 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 • 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 Specialist to accommodate HB 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 operate 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 • 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 • Implement a small business development incentive program • Continue to fund a Haul Route Program (HARP) to improve county roads impacted by the energy industry due to new oil and gas drilling exploration • Begin construction of Phases I of three phases of WCR 49 improvements • 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, 1150 O Street, Greeley, CO 80631. Request for additional information regarding the Housing Authority should be addressed to Tom Teixeira, Executive Director, Weld Housing Authority, 903 6th Street, Greeley, CO 80631. 28 BASIC FINANCIAL STATEMENTS COUNTY OF WELD STATE OF COLORADO Statement of Net Position December 31, 2013 ASSETS Cash and investments Property taxes receivable Receivables (net of allowance for uncollectibles) Due from other governments Internal balance Inventories Other assets Net other post employment benefits asset Restricted assets: Cash and cash equivalents Capital Assets not depreciated Capital Assets - net of accumulated 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 DEFERRED INFLOWS OF RESOURCES Property Taxes Total Deferred Inflows of Resoucres NET POSITION Invested in capital assets Restricted for: Programs Emergencies Claims Public Works Other purposes Unrestricted Total net position Primary Government Governmental Business -type Activities Activities $ 149,125,054 $ 119,745,188 12,025,190 2,367,521 73,142 1,445,372 853,214 366,884 435,619 33,020,673 237,049,039 556,506,896 6,383,854 7,574,214 39,333 2,549,535 4,367 236,995 3,331,824 5,607,840 25,727,962 119,990,840 119,990,840 270,069,712 5,736,608 6,000,000 4,734,408 63,934,016 1,485,431 58,827,919 Total Component Units Housing Authority E-911 Authority - $ 149;125,054 b 1;637,600 $ 3;719,995 119,745,188 71.819 (73,142) 12,097.009 7,367,521 1,445,372 853,214 366,884 435,619 33,020,673 237,049,039 670,201 1,893 79,818 311,090 - 450,655 7,675 2,177,554 (1,323) 556,505,573 2,397,187 6,659,294 (1,323) S 410,788,094 S (1,323) See accompanying notes to the basic financial statements 6,383,854 7,574,214 39,333 2,549,535 4,367 236,995 3,331,824 5,607,840 25,727,962 119,990,840 119,990,840 270,069,712 5,736,608 6,000,000 4,734,408 63,934,016 48,425 19,145 281,662 67,570 281,662 7,675 2,628,209 1,485,431 79,818 58,826,596 2,242,124 3,749,423 S 410,786,771 $ 2,329,617 $ 6,377,632 29 COUNTY OF WELD STATE OF COLORADO Statement of Activities Year Ended December 31, 2013 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: Northern Colorado Regional Crime Laboratory Total primary government Component units: Housing Authority E;-911 Authority Total component units Expenses S 43,436,041 47,925,745 39,953,729 39,341,405 1,521,540 7,932,382 180,110,842 73,321 Charges for Services $ 12,593,578 9,151,431 4,473,145 23,919,388 928,631 493,180 51,559,353 Operating Grants and Contributions Capital Grants and Contributions $ 2,538,000 $ 3,360,749 14,915,296 3,122,313 450,659 7,848,495 32,235,512 71,998 S 180,184,163 S 51,559,353 $ 32,307,510 $ S 2,743,200 1,378,503 S 35,032 $ 2,552,813 $ 2,490,254 $ 4,121,703 S 2,525,286 $ 2,552,813 $ GENERAL REVENUES Taxes: Property taxes Specific Ownership Severance/Tabacco Royalties Miscellaneous Unrestricted investment earnings Total General Revenues and Transfers Change in net position Net position - beginning Net position - ending See accompanying notes to the basic financial statements 30 Net (Expenses) Revenues and Changes in Net Position Primary Government Governmental Activities Business -type Activities $ (28,304,463) $ (35,413,565) (20,565,288) (12,299,704) (142,250) 409,293 (96,315,977) Total Component Units Housing Authority (28,304,463) S (35,413,565) (20,565,288) (12,299,704) (142,250) 409,293 (96,315,977) (1,323) (1,323) $ (96,315,977) $ (1,323) S (96,317,300) S $ - $ $ - $ 105,940,567 7,347,302 2,291,667 17,325,773 4,285,545 1,181,245 138,372,099 42,056,122 368,731,972 (1,323) 410,788,094 $ S S 105,940,567 7,347,302 2,291,667 17,325,773 4,285,545 1,181,245 138,372,099 42,054,799 368,731,972 E-911 Authority S (155,355) $ 1,111,751 S (155,355) $ 1,111,751 8,926 8,926 25,287 25,287 (146,429) 1,137,038 2,476,046 5,240,594 (1,323) S 410,786,771 S 2,329,617 $ 6,377,632 COUNTY OF WELD STATE OF COLORADO Governmental Funds Balance Sheet December 31, 2013 ASSETS Cash and investments Receivables (net of allowance for uncollectibles): Current property taxes Delinquent property taxes Accounts Special assessment Due from other County funds Due from other governments Advances to other funds Inventories Other assets Total Assets General Fund $ 22,643,405 83,765,541 215,602 3,127,790 217,539 38,649 71,819 135,466 341,117 $ 110,556,928 Public Works Social Services Fund Fund $ 50,826,784 $ 2,735,729 11,646,736 27,076 6,505,550 33,333 13,965 1,212,725 8,548,519 28,630 414,601 1,358,922 77,495 $ 70,266,169 $ 13,163,896 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Accrued liabilities Other liabilities Due to other County funds 31,461 Due to other governments Unearned Revenue 683,080 Total Liabilities 4,849,997 Deferred Inflows of Resources: Property Taxes Grant Revenue Total Deferred Inflows of Resources Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows and Fund Balances See accompanying notes to the basic financial statements 2,235,867 1,899,589 84,132,423 84,132,423 677,240 7,114,812 2,089,993 11,527,256 165,207 21,574,508 $ 110,556,928 682,573 338,797 7,435 282,987 701,443 4,367 299,267 39,333 3,200 1,028,805 1,330,597 11,724,845 5,191,729 8,592,588 16,916,574 8,592,588 1,212,725 51,108,065 77,495 3,163,216 52,320,790 3,240,711 $ 70,266,169 $ 13,163,896 32 Human Services Fund Contingent Fund Capital Other Total Expenditures Governmental Governmental Fund Funds Funds $ 349,243 $ 35,008,464 $ 20,904,332 $ 3,873,805 $ 136,341,762 19,861 193,303 969,950 27,119 5,066,579 33,653 8,356,657 24,615 16,532 imb 117,384,032 329,576 861,788 10,929,590 33,333 441,339 - 2,367,521 71,819 1,348,191 3,940 449,671 $ 1,559,476 $ 40,108,696 $ 29,302,136 $ 4,739,533 $ 269,696,834 126,191 158,574 52,613 386,813 2,089,629 imb 724,191 - 2,089,629 27,119 808,166 5,109,382 8,396,364 5,109,382 40,759 216,248 20,900 140,016 5,458,006 3,314,651 4,367 411,676 39,333 1,213,109 417,923 10,441,142 117,955,602 5,191,729 8,396,364 - 123,147,331 imb 34,999,314 18,816,143 835,285 34,999,314 imb 3,940 2,624,889 1,692,781 1,998,519 64,819,148 57,598,231 11,527,256 165,207 18,816,143 4,321,610 136,108,361 $ 1,559,476 $ 40,108,696 $ 29,302,136 $ 4,739,533 $ 269,696,834 COUNTY OF WELD STATE OF COLORADO Reconciliation of Total Governmental Fund Balances To Statement of Net Position December 31, 2013 Total governmental fund balances $ 136,108,361 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 249,599,715 Long-term liabilities, including bonds payable and 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 (3,568,819) (5,607,840) 366,884 Accounts receivables that do not provide current financial resources, are offset by deferred revenues in the funds 5,191,729 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 28;696,741 Internal services used by Enterprise Fund 1,323 Net position of governmental activities $ 410,788,094 See accompanying notes to the basic financial statements 34 hi to \ I f f 8 T: y y, 35 COUNTY OF WELD STATE OF COLORADO Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended December 31, 2013 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 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 General Fund $ 71,187,139 2,853,213 7,649,787 333,021 5,020,175 5,723,406 10,310,527 103,077,268 41,704,429 46,682,410 2,788,025 791,770 1,123,101 1,056,277 94,146, 012 8,931,256 89,000 8,573,824 (8,484,824) 446,432 Public Works Fund $ 18,412,942 488,663 10,737,377 1;570,237 18.717,802 859,782 50,786,803 36,992,637 201,095 37,193,732 13,593,071 5,000,000 5,000,000 18.593,071 21,128,076 33,727,719 $ 21,574,508 $ 52;320,790 See accompanying notes to the basic financial statements Social Services Fund $ 6,483,126 22,560,348 29,043,474 30,478,131 336,009 30,814,140 (1,770,666) 4,000 (4,000) (1,774;666) 5,015,377 $ 3,240;711 36 Capital Other Total Human Contingent Expenditures Governmental Governmental Services Fund Fund Fund Funds Funds $ 7,424,255 3,543,192 - - - 9,545 352,885 - - 3,007,010 140,295 256,764 116,085 127,464 - $ 11,980,678 $ 7,184,197 $ 17,202 $ 115,265,284 3,341,876 51,914,959 342,566 9,950,307 24, 954, 352 11,297,773 7,917,435 11,980,678 7,568,425 6,693,034 217,067,117 7,990,367 46,643 8,037,010 64,547 10,504,403 183,577 8,081,450 406,648 41,768,976 46,865,987 39,780,662 39, 351, 351 1,529,749 7,990,367 12,144,427 10,568,950 8,671,675 189,431,519 (119,575) 11,980,678 (3,000,525) (1,978,641) 27,635,598 12,351 5,000,000 4,500,000 4,169,382 592,909 13,770,733 14,170,733 12,351 (5,000,000) 4,500,000 3,576,473 (400,000) (107,224) 6,980,678 1,499,475 1,597,832 27,235,598 942,509 28, 018, 636 17, 316, 668 2,723,778 108, 872, 763 $ 835,285 $ 34,999,314 $ 18,816,143 $ 4,321,610 $ 136,108,361 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, 2013 Net changes in fund balances - total governmental funds $ 27,235,598 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 29,572,033 (20,087,897) 9,484,136 Net effect of various transactions involving capital assets (i.e. sales, disposals) is an increase to net position (2,229,569) 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 (271,854) (341,967) 67,159 Interngovernmental revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 5,191,729 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. 2,919,567 Internal services used by Enterprise Funds 1,323 Change in net position of governmental activities $ 42,056,122 See accompanying notes to the basic financial statements 38 COUNTY OF WELD STATE OF COLORADO Statement of Net Position Proprietary Funds December 31, 2013 ASSETS Cash and cash equivalents Property taxes receivable Receivables (net of allowance for uncollectibles): 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 DEFERRED INFLOWS AND NET POSITION Current Liabilities: Accounts payable Accrued liabilities Due to other County funds Unearned revenue Advances from general fund Total Current Liabilities Deferred Inflows of Resources: Property Taxes Total Deferred Inflows of Resources 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 assets are different because certain internal service fund assets and liabilities are included with business -type activities. Net assets of business -type activities See accompanying notes to the basic financial statements Business -type Activity Regional Forensic Laboratory Enterprise Fund $ Governmental Activities Internal Service Funds $ 13,218,911 - 2,031,580 71,819 71,819 71,819 71,819 71,819 71,819 $ 1;062,267 5,949 97,181 403,543 16,819,431 1,131,815 17,500 2,048,377 41,166,782 (23,894,477) 20,469,997 37,289,428 925,848 4,259,563 35,612 1,336,426 6,557,449 2,035,238 2,035,238 8,592,687 20,469,997 5:680,560 2,546,184 - $ 28,696,741 1,323 $ (1,323) 39 COUNTY OF WELD STATE OF COLORADO Statement of Revenue, Expenses and Changes in Net Position Proprietary Funds For the fiscal year ended December 31, 2013 Operating revenues: 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 Miscellaneous Interest income Federal grant Gain (loss) on disposition of assets Judgements 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 Business -type Activity Regional Forensic Laboratory Enterprise Fund $ Governmental Activities Internal Service Funds - $ 15,079,777 - 10,379,298 6,096 63,092 2,810 71,998 (71,998) 71,998 71,998 $ 25,459,075 179,505 2,526,865 6,312,719 500,025 3,620,386 250,167 13,328,771 26,718,438 (1,259,363) 1,997,895 3,949 31,255 1,372,535 241,694 131,602 3,778,930 2,519,567 400,000 2,919,567 25,777,174 - $ 28, 696, 741 (1,323) $ (1,323) See accompanying notes to the basic financial statements COUNTY OF WELD STATE OF COLORADO Statement of Cash Flows Proprietary Funds For the fiscal year ended December 31, 2013 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 Other 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: 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 See Accompanying notes to the basic financial statements Business -type Activity Enterprise Fund Regional Forensic Laboratory Governmental Activites Internal Service Funds (2,841) (69,157) (71,998) 71,819 179 71,998 (71,998) (71,998) 272,985 25.198,837 (22.686,180) (280,202) (229,564) 131,602 3,949 2,411,427 1, 995,122 400,000 265,026 2,660,148 (5,774,090) 294,642 (5.479,448) 33,091 (374,782) 13,593,693 13,218,911 (1.259,363) 3,620,386 131,602 3,949 43,659 4,041 7,708 (348,814) 43,807 213,974 (195,956) 146,434 3.670,790 2,411,427 29,487 COUNTY OF WELD STATE OF COLORADO Statement of Fiduciary Net Position Fiduciary Funds December 31, 2013 Weld County Other Post Agency Weld County Employment Funds Retirement Plan Benefits ASSETS Cash and cash equivalents $ 5,419,948 $ $ Accounts Receivables (net of allowances for uncollectables): 703 Restricted assets Cash - 10,225,328 2,821,212 Common Stock 93,432,560 US Property Fund 15,986,963 Fixed Income 36,432,106 Fund of Funds 6,307,463 Total assets $ 5,420,651 $ 162,384,420 $ 2,821,212 LIABILITIES AND NET POSITION Accounts payable Due to other governments Total Liabilities NET POSITION Held in trust for pension benefits and other purposes $ 257,888 $ 41,625 $ 543,254 5,162,763 $ 5,420,651 $ 41,625 $ 543,254 See accompanying notes to the basic financial statements $ 162,342,795 $ 2,277,958 COUNTY OF WELD STATE OF COLORADO Statement of Changes in Fiduciary Net Position Fiduciary Funds For the fiscal year ended December 31, 2013 Weld County Additions: Employer contributions Employee contributions Earnings on investments, net of investment related expenses of $306,329 and $0 Net appreciation in fair market value of investments Reimbursment of Prior Years Expeditures Total Additions Deductions: Actuarial/Trustee fees Benefit payments Supplies Total Deductions Change in net assets Net position - beginning Net position - ending See accompanying notes to the basic financial statements Retirement Plan Other Post Employment Benefits $ 6,234,145 $ 6,234,145 5,742,529 13,995,943 5,000,864 37,207,626 62,958 13,278,324 4,200 13,345,482 23,862,144 138,480,651 $ 162, 342, 795 96,870 21,736 118,606 648,681 648,681 (530,075) 2,808,033 $ 2,277,958 NOTES TO THE FINANCIAL STATEMENTS 44 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 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. The financial statements of the County have been prepared in conformity with generally accepted accounting principles (GAAP) 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 45 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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. 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 17" 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. 46 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 Ended December 31, 2013 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. COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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. 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. 49 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 Crime Lab 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, Proprietary 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 to be available, except for property taxes, 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. 50 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Property taxes, licenses, 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. 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 Services Fund is funded by Federal and State 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. COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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. 52 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 when available, or values provided by investment managers. 2. Property Taxes: Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on December 21, 2013, 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. 53 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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". 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, assets (computer software and right of ways for land infrastructure assets (e.g., roads, bridges and similar reported in the applicable governmental or business -type columns in the government -wide financial statements. Capital intangible use) , and items), are activities 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 value of the asset or materially extend assets' lives are not capitalized. 54 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 Infrastructure Equipment Heavy Equipment - Bridges - Roads 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. 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 are 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. 55 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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, 2013, fund balances for governmental funds are comprised of the following: 1.Nonspendable fund 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 fund 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.Committed 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 5.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. 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. 56 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 fund 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 six - million dollars or three -percent of the TABOR revenue limit, whichever is greater. 57 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Fund balances for all major and non -major governmental funds as of December 31, 2013, are distributed as follows: Nonspendable Inventory Long -Term Accounts Receivable 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 Unassigned Total Fund Balance General 135,466 200, 657 341,117 677,240 Public Works 1,212,725 1,212,725 - 51, 108, 065 6/000,000 1,114,812 7,114,812 2,089,993 08_a, 993 11,527,256 11,527,256 165,207 21,574,508 51,198?,965 Social Services 77,495 77,495 3,163,216 3, 1 63, 52,320,790 3,240,711 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Human Capital Services Contingent Expenditures Non Major Total 27, 119 27, 119 808, 166 808, 166 - 1,348,191 - - - 200,657 - - 3,940 449, 671 - - 3,940 1,998,519 51, 108, 065 2,254,270 2,254,270 3,163,216 808,166 6,000,000 - 370,619 1,485,431 - 2,624,889 - 18,816,143 34, 999, 314 - 34, 999, 314 x,783 - 1,692,781 18, 816, 143 34, 999, 314 18, 816,143 64,819,148 18, 816,143 1,692,781 34,999,314 2,089,993 1,692,781 57, 598, 231 17,527,256 - 11,527,256 165,207 4,321,610 136, 108, 361 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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, 2013, the county's General Fund has a total of $2,084,422 in encumbrances, which were reported as $557,166 of the assigned fund balance and $1,527,256 in the restricted fund balance on the governmental fund balance sheet. Encumbrance balances by major funds and non -major funds as of December 31, 2013 are: General Fund Public Works Social Services Capital Total Restricted $ 1,527,256 4,113,351 94,268 51734,875 Committed 1,416,608 1,416,608 Assigned $ 557,166 9. Net Position Net position represents the difference between deferred inflows. Net position invested in related debt consists of capital assets, net of reduced by the outstanding balances of any acquisition construction of improvements of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the County or through external restrictions imposed by creditors, grantors, laws or regulations of other governments. 557, 166 Total $ 2,084,422 4,113,351 94,268 1,416,608 7,708,649 assets, liabilities, and capital assets, net of accumulated depreciation, borrowing used for the 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. 60 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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. All annual appropriations lapse at year end. 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 2013, two supplemental appropriation ordinances were enacted. Budget amounts reported in the accompanying financial statements 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. 61 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Note 3 - Equity in Pooled Cash and Investments: A. Cash and Investments Cash and investments held by the Treasurer's office at December 31, 2013 as reported by the financial institutions, consisted of the following: Deposits Investments: FFCB 10,000,000 FHLM 9, 980, 0000 FNMA 89, 965, 000 $ 62, 127, 219 109, 945, 000 Total $172,072,219 Cash and investments held by the Treasurer's office at December 31, 2013, excluding outstanding warrants, reported in government -wide and agency funds consisted of the following: Government -wide Agency and Fiduciary funds Total B. Deposits $152,636,996 19, 435, 223 $172,072,219 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, 2013, the County had deposits of $62,127,219 collateralized with securities held by the financial institutions' agents but not in the County name. 62 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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, 2013, the County had the following investments: Investment Maturities (in Years) 1 or less $ 0 1 - 3 yrs. 0 3 - 5 yrs. 109,945,000 $109,945,000 Money Market $ 62,127,219 Total $172,072,219 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, 2013, 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. 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, 2013, the County's investments in Federal Farm Credit Bank, Federal Home Loan Mortgage, and Federal National Mortgage Association represented 9%, 9%, and 82%, respectively of the County's total investments. 63 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 average duration in the portfolio on December 31, 2013 was 3.9 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 $24,289,002 invested in overnight pooled money with Wells Fargo on December 31, 2013. 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, 2013 restricted cash balance of $435,619 is made up of $65,000 advanced to cover insurance claims and $370,619 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 $1,717,418 at December 31, 2013. Bank and investment balances before reconciling items were $1,717,418 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 $1,717,418 Restricted cash consists of tenant section 8 HAP reserves and escrow. The available cash balance of $3,719,995 for the E911 authority is included in the Agency and Fiduciary Fund Cash balance of $19,435,223 held at the Weld County Treasurers Office listed above. 64 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 Human Services Capital Internal Service Payable Fund Public Works Social Services Health Human Services General Internal Service Social Services Internal Service General Public Works Internal Service $ 6,935 105,964 20,900 52, 613 31,127 13,965 193,303 16, 532 334 500 5,115 $ 447,228 65 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Transfers in/out: 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: Transfers From: Transfer To: General Fund Public Works Human Services Capital Non -Major Government Internal Service General Fund 12,351 4,500,000 3,661,473 400,000 8,573,824 Social Services 4,000 $ Contingent Fund - 5,000,000 4,000 5,000,000 Note 5 - Allowance for Uncollectible Accounts Receivable: The allowance for uncollectible December 31, 2013: Fund Ty General Public Works Social Services Contingent Capital Expenditures Internal Service Total Non -Major Government $ 85,000 $ 507,909 T'ota- 89, 000 5,000,000 12,351 4,500,000 4,169,382 400,000 592,909 14,170,733 receivables consists of the following at Allowance for Uncollectible $ 54,982 6,916 7,273 8,413 6,314 1,623 85, 521 66 hi to \ I f f 8 T: y y, 67 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2013 Note 6 - Capital Assets: Capital asset activity for the year ended December 31, 2013, was as follows: Governmental activites 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 Improvements Equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Beginning Balance S 8,886.168 $ 742.972 12.290,709 5.543.026 Increases 404.063 1,706,294 8.289.986 27.462.875 10,400,343 132.837.192 11.251.320 48,507,170 330.891.954 4.595.348 82.572 8.305,014 12.450,675 523.487.636 25.433,609 36.152.661 3.255,714 29,204,751 221, 706.503 3.208,824 460.148 4,315,362 15,723,948 290.319.629 23.708,282 233.168.007 1.725.327 Decreases Transfers In (Out) 14.450 14.450 2.744.365 5.726.872 8.471.237 2,247,743 3.551.104 5.798.847 2.672.390 54,759 (101,316) (4,781,538) (4,828,095) 752,864 59,032 3,914,883 101,316 4,828,095 4,828,095 Ending Balance S 8,886.168 1.201.794 13,881,237 9.051,474 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 Governmental activities capital assets, net S 260.630.882 $ 12.125.670 $ 2.686.840 $ - $ 270.069.712 68 COUNTY OF WELD STATE OF COLORADO NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2013 Housing Authority Capital assets being depreciated: Equipment Total capital assets being depreciated Less accumulated depreciation Buildings Improvements Equipment Total accumulated depreciation Total capital assets being depreciated, net Housing Authority capital assets, net E-911 Assets: Beginning Balance Increases Ending Decreases Transfers In (Out) Balance S 23, 907 $ $ - $ $ 23,907 23,907 - - 23,907 14,765 14,765 9,142 1.467 - - 16,232 1.467 - 16,232 (1,467) - 7,675 $ 9,142 $ (1,467) $ Capital Assets not being depreciated Construction in progress S 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 4.502,545 4.502.545 1.962.930 1.962.930 $ 450.655 $ $ $ 7,675 $ 450.655 26.916 - 4.529.461 26.916 - 4.529.461 388.977 - - 2.351.907 388.977 - - 2.351.907 2.539,615 (362,061) - - 2.177.554 S 2.539,615 $ 88.594 $ $ - $ 2.628.209 69 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Depreciation expense was charged to functions/programs government as follows: Governmental activities: General government Public safety Streets 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: of the primary $ 1,653,535 1,813,243 16,133,573 23,471 6,884 457,190 3,620,386 $ 23,708,282 1,467 388,977 $ 390,444 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 fund. 70 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 (IBNR) 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 2012 $ 1,980,880 548,329 (1,024,159) 2013 $ 1,505,040 1,380,442 (1,404,597) $ 1,505,040 $ 1,480,885 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 $125,000 self -insured retention during current and prior years are as follows: Unpaid Claims - Beginning Incurred- Claims (Includes IBNR'.$) Claims Paid Unpaid Claims - Ending 2012 200,943 184,872 (198,706) 20:3 187,109 412,676 (387,709) $ 187,109 S 212,076 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. 71 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 - Beginning Incurred C=airns Claims Paid Unpaid Claims - Ending Note 8 - Long -Term Debt: 2012 $ 2,231,336 11,120,657 (11,018,669) S 2,333,324 S 2013 2,333,324 11,448,614 (_1,234,761) $ ?_,547,177 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 $213,565,036 at December 31, 2013. 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, 2013 totaled $3,828,998 Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2012, 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 Y Beginning Balance tidd.it_cr_s Reductions 1,635,528 477,146 822,246 203,092 158, 953 3,296,965 S 233,522 35,0.54 133, 195 7,170 50,856 459,797 Ending Balance 67,8.87 $1,801,163 6,935 505,265 76,548 878,893 4,781 205,481 31,792 178,017 $ 187,943 S 3,568,6_9 Due Within One Year $ 99,059 8,437 84,903 7,952 1,644 S 236,995 72 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 obligation (asset) activity is recorded in the County' General Fund. Annual Pension Cost and Net Pension Obligation: The County's annual pension cost and net pension obligation to the Plan 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 obligat_cn Net pension obligation (asst) hcq _;LE_siq of year Net pension obligation (assn_) end of your $ 6,505,700 421,270 (350,8.58) 6,576,112 (6, 234, 145) 34:, 967 5,265,873 $ 5,607,840 The annual required contribution for the current year was determined as part of the January 1, 2013 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 short- term 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, 2013, was 30 years. Pension obligations are paid by County funds in proportion to the salary incurred by each fund. 73 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Three -Year Trend Information: Fiscal l' a_ E_idcd December 31, 2011 December 31, 2012 December 31, 2013 Funding Status: Actuarial Valuation Date Actuarial Value of Assets (a) Annual Pension Cost (APC) 6,443,570 6,127,203 6,576,112 $138,911,110 Actuarial Accrued Liability (AAL) Entry Age (b) $212,186,030 Percentage of APC Contributed 104.1% 97.43% 94.80% Unfunded AAL (UAAL) (b -a) $73,274,920 Net Pension Obligation (Asset) 5,108,709 5,265,873 5,607,840 Funded Covered Ratio Payroll (c) (a/b) UAAL as a Percentage of Covered Payroll [b -a) /c] 65.47% 55,833,201 131.24% A schedule of funding progress can be found in the RSI 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. 74 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Note 10 - Other Post Employment Benefits: Plan Description: Weld County Other Post Employment Benefits Plan (OPEB Plan) is a single - employer 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. 75 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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 2013, the county contributed $0 to the plan. Plan members receiving benefits contributed $96,890, or approximately 100 percent of the total premiums, through their required contribution ranging from $120 to $146 per month for retiree -only coverage and between $209 to $315 for retiree and spouse coverage. The OPEB Plan assets are deposited in the Weld County OPEB Plan Trust Fund. The employer's contributions to the trust fund are 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 (OPEB) 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 78 members in 2013 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 OPEB cost for the year, the amount actually contributed to the plan, and changes in the county's net OPEB obligation to Weld County: 76 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Level Dollar Amortization Calculation on ARC under Projected Unit Credit Method on December 31, 2013 Amortization of ti AAL over 25 years Normal cost at beginning of year Interest Annual OPEB cost Interest Earned on Net OPEB Asset 2013 Gross Annual Required Contribution Employee Contributions 2013 Net County ARC County Contribution Decrease in net OPI',N obligation Beginning OPEB obligation (asset) Ending OPEB Obligation (asset) 0 51,444 0 51,444 (21, 736) 29,708 (96,867) (67,159) 0 s (67, 159) (299, 726) (366,885) There is no unfunded actuarial accrued liability (UAAL) at the end of the year. A surplus of $366,885 exists. Covered Participants as of January 1, 2014 Retired Employees Spouses of Retired En_p_oyees Three -Year Trend Information: Fiscal Year End December 31, 2010 December 31, 2011 December 31, 2012 December 31, 2013 Ann.:a1 OPEB Cost 710,071 710,071 713,965 51,444 54 8 Percentage of OPEB cost Contributed 218% 161% 100% 188% 62 Net OPEB Asset $(1,157,309) $(1,685,635) $ (299, 725) $ (366,885) 77 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 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, 2013 was $2,551,388 there were $2,918,273 in assets on December 31, 2013 for funding excess of $366,885. All related pension obligation (assets) are recorded in the County's General fund. Funded Status and Funding Progress. The funded status of the plan as of December 31, 2013, was as follows: A:: Luarial Accrued Liability (AAL) Actuarial value of plan assets Fund Excess Funded ratio (actuarial value of plan assets/AAL) S 2,551,388 $ 2,918,273 $ (366, 885) 114.38% 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. 78 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Note 11 - Commitments and Contingencies: Commitments As of December 31, 2013 there were encumbrances carried forward to 2014 of $1,527,256 in the General fund, consisting of $210,613 for general purchases and $1,316,643 for Communications system development. The Public Works fund carried forward $4,113,351 for road construction projects. In the capital expenditures fund year-end projects under construction included $896,108 for building improvements, $520,500 for a Public Works storage building. 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, 2013 Assets Liabilities Net Position Revenues Expenses $ 407,183 7,230 399,953 523,188 571,481 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. 79 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Note 13 — Non -Cash Activity in Social Services Fund Schedule of EBT Authorizations, Warrant Expenditures and Total Expenditures For the Year Ended December 31, 2013 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 5,408,582 7,683 126,627 5,53.5,209 134,310 Low -Income Energy Assistance Program 1,130,102 - 110,319 1,240,421 110,319 Temporary Assistance for Needy Families 4,487,278 798,541 2,644,926 7,132,204 3,443,467 Administration 7,220 1,444 8,386,810 8,394,030 8,388,254 Trails/Child Welfare 7,960,848 1,617,456 11,367,599 19,328,447 12,985,055 Core Services • 1,766,525 303,021 495,974 2,262,499 798,995 Aid to the Needy Disabled 1,088,502 172,645 (45,796) 1,042,706 126,849 IV -D Administration - - 3,307,939 3,307,939 3,307939 CHATS/Child Care 2,922,863 406,975 614,040 3,536,903 1,201,015 General Assistance - - 498,054 498,054 498,054 Subtotal 24,771,920 3,307,765 27,506,492 52,278,412 30,814,257 Food Assistance 39,797,995 - (117) 39,797,878 (117) Grand Total 64,569,915 3,307,765 27,506,375 92,076,290 30,814,140 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. 80 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Note 14 - Recent Pronouncements: In June 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 determent. 81 hi to \ I f f 8 T: y y, 82 Required Supplementary Information Other Than MD&A COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Schedule of Funding Progress - Retirement Plan Actuarial Valuation Date 1/1/06 1/1/07 1/1/08 1/1/09 1/_/2010 1/1/2011 1/1/2012 1/1/2013 Actuarial Value of Assets (a) $103,979,296 $112,874,087 $125,879,138 $112,079,550 $131,288,037 $134,917,364 $135,173,969 $138,911,110 Actuarial Accrued Liability (AAL) Entry Age (b) $136,792,785 $150,145,842 $167,011,647 $176,927,890 $186,0:5,431 $193,269,672 $203,114,167 $212,186,030 Unfunded AAL (UAAL) (b -a) $32,813,489 r $37,271,755 $41,132,509 $64,848,340 $54,727,394 $58,352,308 $67,940,198 $73,274,920 Funded Ratio (a/b.) 76.0 75.2% 75.4` 63.3% 70.6% 69..8% 66.55= 65.47% Covered Payroll (c) $41,529,717 $44,2_10,410 $49,967,777 $53,988,779 $53,484,492 $53,415,982 $55,871,701 $55,833,201 Schedule of Employer Contributions - Retirement Plan Year Ended December 31 2006 2007 2008 2O09 2010 2011 2012 2013 Required Annual Required Contribution` $4,236,858 $4,408,097 $4,928,519 $7,087,011 $5,417,362 $6,013,818 $6,138,685 $6,505,700 contribution at beginning 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 of year. UAAL as a Percentage of Covered Payroll [b-a)/c] Percentage Contributed 75.7% 83.6% 84.9% 70.0% 90.2% 111.50 97.25% 95.83% 79.0% 84.3% 82.3% :20.1% _02.3% 109.2% 121.60% 131.24 83 COUNTY OF WELD STATE OF COLORADO Year Ended December 31, 2013 Schedule of Funding Progress - Other Post Employment Benefits Actuaria_ Valuati on Date Actuarial value of Assets (a) $ 1,831,353 S 1,856,115 S 2,550,854 $ 2,784,877 $ 3,521,997 $ 2,918,273 Actuarial Accrued Liability (AAL) Entry Age (b) $ 8,346,023 $ $ $ $ 8,346,023 8,346,023 8,346,023 3,222,272 2,551,388 Unfunded AAL (UAAL), (Excess Funding) (b -a) 6,514,670 6,489,908 5,795,169 5,561,146 (299,725) (366,885) Funded Ratio (a/b) 21.9% 22.2% 30.1% 33.4° 109.3- 114.38% Schedule of Employer Contributions - Other Post Employment Benefits Year Ended December 31 2010 2011 2012 2013 (1)Required Annual OPEB Cost") $710,071 $710,071 $713, 96.5 $51,444 contribution Actual Contribution $1,364,055 $960,700 $713, 965 $96,867 at beginning of year. Percentage Contributed 192.1% 135.3% 100.00 188.3% 84 COUNTY OF WELD STATE OF COLORADO Required Supplementary Information 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. Condition Good Fair Poor Miles 1784 383 74 2013 % of Total 79.6% 17.1% 3.3% Miles 1821 377 64 Comparison of Estimated -to -Actual Maintenance/Preservation 2009 Estimated $ 2,947,356 Actual $ 1,572,615 2012 % of Total 80.5% 16.7% 2.8% 2010 2011 2012 $ 2,915,000 $ 3,160,000 S 3,132,000 S 3,046,576 $ 2,683,326 $ 3,696,246 Gravel Roads - Surface Condition Rating Criteria Miles 1574 658 56 2011 % of Total 68.8% 28.7% 2.5% 2013 2014 3,360,875 $ 2,696,700 3,131,555 Section 43-2-120 (5)(a -b), G.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 anddrainage 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. 85 86 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, 2013 Budget - GAAP 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 Services Fines and Forfeitures: Property forfeitures/evidence Fines (drunk drivers) Total Fines and Forfeitures Miscellaneous: Miscellaneous Interest Rents from buildings Sales of assets Total Miscellaneous (CONTINUED) Original Final $ 71,116,616 60,000 $ 71,116,616 120,000 71,176,616 71,236,616 5,500 375,000 1,000,000 200,000 8,500 385,000 1,700,000 500,000 1,580,500 2,593,500 3,000 3,201,898 547,104 264,240 2,481,652 3,000 5,007,048 547,104 364,240 4,016,242 8,403,044 300,000 3,718,267 120,500 23,500 800,000 3,913,767 120,500 23,500 4,162,267 4,857,767 303,500 303,500 303,500 303,500 2,510,012 1,100,000 517,446 4,668,136 1,100,000 517,446 5,000 4,127,458 6,290,582 Actual $ 70,912,087 209,290 65,762 71,187,139 8,590 401,998 1,859,369 583,256 2,853,213 2,690,133 3,892,276 736,852 330,526 Variance $ (204,529) 89,290 65,762 (49,477) 90 16,998 159,369 83,256 259,713 208,481 (3,000) (1,114,772) 189,748 (33,714) 7,649,787 (753,257) 840,232 4,039,943 118,907 21,093 5,020,175 175,709 157,312 333,021 40,232 126,176 (1,593) (2,407) 162,408 175,709 (146,188) 29,521 4,176,371 (491,765) 983,330 (116,670) 558,553 41,107 5,152 152 5,723,406 (567,176) 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, 2013 Budget - GAAP Basis REVENUES (CONTINUED) Fees: Fee account Treasurer's fees Cable 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 registration Motor vehicle County Treasurer County Assessor Maintenance of buildings/grounds County Council District Attorney Juvenile Diversion Grant Adult Diversion Victim Assistance MYAT - Probation Financial administration General accounting Purchasing Personnel Geographical Information Systems Computer Services Inovation & Technology Project Printing and Supply Smart Energy Project Total General Government (CONTINUED) Original Final 8,567,000 50,000 60,000 8,677,000 10,041,245 50,000 90,000 Actual 10,186,009 40,849 83,669 10,181,245 10,310,527 Variance 144,764 (9,151) (6,331) 129,282 94, 043, 583 103, 866,254 103, 077, 268 (788, 986) 881,660 782,260 1,632,913 315,729 992,794 1,157, 749 2,180,446 886,839 2,805,011 5,900,203 47,368 4,977,286 96,518 51,593 712,665 530,585 673,729 245,605 822,786 169,199 2,616,597 2,000,000 347,967 740,605 910,010 892,260 1,737,913 385,729 996,794 1,157,749 2,183,546 1,022,839 3,031,511 6,245,203 47,368 5,276,286 97,518 61,593 712,665 30,000 552,585 741,729 250,605 994,223 210,199 3,427,597 1,000,000 376,967 1,481,210 31,568,107 33,824,099 866,162 43,848 902,768 (10,508) 126 (126) 1,570,111 167,802 289,814 95,915 900,563 96,231 600,927 556,822 2,175,483 8,063 922,245 100,594 2,608,605 422,906 5,913,086 332,117 8,775 38,593 5,161,884 114,402 100,051 (2,533) 57,729 3,864 1,292,847 (580,182) 27,495 2,505 525,506 27,079 715,454 26,275 246,536 4,069 820,056 174,167 206,110 4,089 3,312,730 114,867 311,844 688,156 316,099 60,868 1,047,770 433,440 30,900,776 2,923,323 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, 2013 Budget - GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED) Public Safety Sheriff administration Crime control and investigations Traffic control Municipal Service Contracts Task force Regional forensic laboratory Communications services Communication system development Criminal justice Justice Services County Coroner Correctional administration Community correction Building inspection Office of emergency management Waste water management Animal control Pest/weed control Victim Advocates Total Public Safety Public Works: General engineering Extension services Veteran office Airport 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: Missile site park Parks and Trails County fair Total Culture and Recreation (CONTINUED) 1,832,313 1,954,313 1,906,275 48,038 7,245,005 7,267,737 7,213,137 54,600 1,067,483 1,067,483 973,400 94,083 877,782 1,047,782 997,503 50,279 109,516 109,516 232,508 (122,992) 303,340 581,520 412,243 169,277 3,140,421 4,900,421 3,152,925 1,747,496 - 30,000 74,275 (44,275) 1,214,224 1,214,224 1,579,440 (365,216) 548,306 585,681 580,496 5,185 778,172 802,172 781,161 21,011 22,776,384 23,607,684 23,444,590 163,094 2,489,458 2,489,458 2,767,305 (277,847) 1,157,661 1,340,661 1,187,392 153,269 228,833 258,833 242,036 16,797 10,000 10,000 1,000 9,000 291,342 299,342 280,994 18,348 790,370 791,370 710,175 81,195 152,018 170,018 123,140 46,878 45,012,628 48,528,215 46,659,995 1,868,220 2,804,326 335,432 63,415 3,027,301 431,432 88,915 2,126,323 590,132 74,428 900,978 (158,700) 14,487 3,203,173 3,547,648 2,790,883 756,765 203,225 38,225 13,000 114,700 6,780 203,225 38,225 13,000 1,051,300 6,780 375,930 1,312,530 86,425 29,000 326,660 86,425 29,000 342,660 442,085 458,085 184,825 18,400 38,225 13,000 548,940 502,360 6,780 791,770 520,760 69,250 29,000 1,021,993 17,175 (679,333) 1,120,243 (662,158) 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, 2013 Budget - GAAP Basis EXPENDITURES (CONTINUED) Miscellaneous: Other Refund of Prior Years Retierment Benefi Building rents Total Miscellaneous Capital Outlay: Capital purchases Original Final 3,855,399 5,000,000 87,075 6,490,708 5,000,000 87,075 8,942,474 11,577,783 2,447,268 3,609,798 Total Expenditures 91,991,665 102,858,158 Other Financing Source (Use) Transfers - In: Non -Departmental Transfers - Out: Appropriation Grants -In -Aid Total Other Financing Sources (Uses) 85,000 3,673,824 (3,588,824) Net Change in Fund Balance (1,536,906) Fund Balance at Beginning of Year Fund Balance at End of Year 85,000 Actual 5,763,847 5,000,000 62,221 10,826,068 Variance 726,861 24,854 751,715 1,056,277 2,553,521 94,146,012 8,712,146 89,000 8,569,824 8,573,824 (8,484,824) (8,484,824) (7,476,728) 4,000 (4,000) 446,432 7,923,160 21,128,076 21,128,076 21,128,076 $ 19,591,170 $ 13,651,348 $ 21,574,508 $ 7,923,160 91 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, 2013 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 registration fees Highway user tax fund Total Intergovernmental Charges for Services: Charges for services Miscellaneous: Earnings on deposits Special assessments Royalties Miscellaneous Total Miscellaneous Fees: Other fees Total Revenues Original Final $ 9,000,000 $ 9,000,000 2,250,000 2,250,000 6,000,000 6,000,000 17,250,000 530,000 90,000 300,000 3,216,672 330,000 9,550,000 13,486,672 3,000,000 3,593,000 6,593,000 37,859,672 17,250,000 530,000 90,000 570,000 3,536,672 330,000 9,550,000 14,076,672 700,000 5,199,000 3,990,000 9,189,000 41,745,672 Actual $ 8,975,946 2;082;377 7;346;322 8,297 18,412,942 488,663 359,254 314,252 4,328 340,304 9;719,239 10;737,377 1,570,237 38,743 3,333 17,325,773 1,349,953 18,717,802 859,782 50,786,803 Variance $ (24,054) (167;623) 1;346,322 8;297 1,162,942 (41,337) 269,254 (255,748) (3,532,344) 10,304 169;239 (3.339,295) 870,237 38;743 3,333 12,126,773 (2,640,047) 9.528.802 859,782 9,041,131 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, 2013 Budget - GAAP Basis EXPENDITURES Public Works Bridge construction Maintenance of condition Maintenance support Trucking division Mining division Administration Pavement Management Other public works Total Public Works Intergovernmental: Grants-in-aid to cities/towns Capital outlay Total Expenditures Other Financing Sources (Uses): Transfers - In: Contingent Fund Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balances at Beginning of Year Original Final 3,197,856 6,497,897 1,235,658 4,482,666 3,246,116 729,791 6,866,377 14,897,267 41,153,628 1,534,578 42,688,206 (4,828,534) 33,727,719 3,832,856 7,157,897 1,344,658 4,732,666 4,481,616 764,791 7,941,377 23,968,067 54,223,928 1,534,578 100,000 55,858,506 5,000,000 5,000,000 (9,112,834) 33,727,719 Actual 3:888,793 6,732,426 1,157,682 4,525,080 2,500,287 942,134 6,804,105 8,797,900 35,348,407 1,644,230 201,095 37.193,732 5;000,000 5,000,000 18,593,071 33.727,719 Variance (55,937) 425.471 186,976 207,586 1,981,329 (177,343) 1;137, 272 15.170,167 18.875,521 (109,652) (101;095) 18,664,774 27, 705, 905 Fund Balances at End of Year $ 28,899,185 $ 24,614,885 $ 52.320,790 $ 27,705,905 93 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, 2013 Budget - GAAP Basis REVENUES Taxes: General property taxes Penalties & Interest Total Taxes Intergovernmental: Welfare Total Revenues EXPENDITURES Public Health and Welfare: Administrative - regular Administrative - IV -D Food stamps Other Programs General assistance TANF AND - State Child welfare Day care (CONTINUED) Original Final $ 6,500,000 $ 6,500,000 6,500,000 6,500,000 19,866,602 26,366,602 8,792,945 3,125,000 250,000 10,000 2,678,000 20,000 12,530,000 916,000 23,827,602 30, 327, 602 9,292,945 3,425,000 350,000 10,000 3,628,000 120,000 13,030,000 1,005,000 Actual Variance $ 6,478,330 $ 4,796 6,483,126 22,560,348 29,043,474 7,733,535 3,292,010 (117) 391,509 498,055 3,443,466 126,849 12,928,182 1,021,016 (21,670) 4,796 (16,874) (1,267,254) (1,284,128) 1,559,410 132,990 117 (41,509) (488,055) 184.534 (6,849) 101,818 (16,016) 94 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, 2013 Budget - GAAP Basis EXPENDITURES (CONTINUED): OAP - A Core services Administrative - LEAP Total Public Health and Welfare Capital Outlay Total Expenditures Other Financing Sources (Uses): Transfers - Out: Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year Original Final 121,500 328,000 225,600 28,997,045 28,997,045 (2,630,443) 5,015,377 $ 2,384,934 143,500 728,000 225,600 Actual 134,309 798,996 110,321 31,958,045 30;478,131 1,000,000 336,009 32,958,045 30,814,140 4,000 (4,000) (2,630,443) (1,774,666) 5,015,377 $ 2,384,934 5015,377 Variance 9,191 (70,996) 115.279 1.479.914 663,991 2,143,905 4,000 (4,000) 855,777 $ 3;240,711 $ 855;777 95 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, 2013 Budget - GAAP Basis REVENUES Intergovernmental: Federal grants State grants Total Intergovernmental Charges for Services: Charges for services Total Charges for Services Miscellaneous: Donations from private sources Total Miscellaneous Total Revenues 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 planning WIA dislocated worker Human resources lab pool UI training program Original Final $ 5,388,158 $ 5,910,258 1,953,538 2,095,538 7,341,696 8,005,796 429,000 429,000 429,000 429,000 150,000 150,000 150,000 150,000 7,920,696 8,584,796 895,000 40,000 293,000 652,000 155,000 1,008,000 450,500 25,000 26,000 490,000 383,000 246,000 1,067,000 44,600 293,000 652,000 155,000 1,008,000 675,500 25,000 26,000 490,000 383,000 246,000 Actual Variance $ 5,516,328 $ (393,930) 1,907,927 (187,611) 7,424,255 352,885 352,885 140,295 140,295 7,917,435 (29,218) 1,129,235 49,719 276,096 672,325 160,696 790,581 672,274 16,671 381,458 347,741 160,785 (581,541) (76,115) (76,115) (9,705) (9,705) (667,361) 29,218 (62,235) (5,119) 16,904 (20,325) (5,696) 217,419 3,226 8,329 26,000 108,542 35,259 85,215 96 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, 2013 Budget - GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED): One stop AAA administration OAA title III -B OAA title III -C1 congregate OAA title III -C2 OAA in home support Health services AAA elder abuse AAA ombudsman Single entry point LEAP NCMC Grant Vale Grant AAA case management AAA state funds Part E family caregiver support CSBG Total Economic Assistance Capital Outlay: Human resources general fund TANF Employment first Total Capital Outlay Total Expenditures Other Financing Sources (Uses): Transfers - In: OAA area agency Total Other Financing Sources Net Change in Fund Balance Fund Balances at Beginning of Year 182,000 89,716 308,975 540,168 41,000 12,954 11,631 2,065 7,256 1,261,200 5,000 12,000 454,538 100,132 240,912 229,000 89,716 308,975 540,168 75,000 12,954 23,631 2,065 7,256 1,331,200 5,000 12,000 4,500 549,538 100,132 240,912 7,933,047 8,597,147 7,933,047 8,597,147 12,351 12,351 232,609 55,389 227,856 534,864 62,206 12,862 24,356 1,804 7,221 1,484,262 580 2,728 11,607 4,373 553,247 65,726 80,314 (3,609) 34,327 81;119 5,304 12,794 92 (725) 261 35 (153,062) (580) 2,272 393 127 (3,709) 34;406 160.598 7,990,367 606,780 17,939 (17,939) 14,352 (14,352) 14,352 (14,352) 46,643 (46,643) 8,037,010 560,137 12,351 12,351 12,351 12,351 (107,224) (107,224) 942,509 942,509 942,509 Fund Balances at End of Year $ 942,509 $ 942,509 $ 835,285 $ (107;224) 97 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 December 31, 2013 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes Total Revenues EXPENDITURES Miscellaneous Total Expenditures Transfers - Out: Other Total Other Financing (Uses) Net Change in Fund Balance $ 12,000,000 $ 12,000,000 $ 11,980,678 $ (19,322) 12,000,000 12;000,000 11;980;678 12,000,000 12,000,000 Fund Balances at Beginning of Year 28,018,636 (19,322) 7,000,000 - 7.000,000 7,000,000 - 7,000,000 5,000,000 5,000,000 (5,000,000) (5,000,000) 6,980,678 6,980,678 28,018,636 28.018,636 Fund Balances at End of Year $ 28,018,636 $ 28,018,636 $ 34,999,314 $ 6,980,678 98 Supplemental Information COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2013 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 receivedfrom 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 account 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. 99 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2013 PROPRIETARY FUNDS Enterprise Funds Enterprise funds account for operations that are 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 operation costs for 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. 100 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2013 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 arc refunded upon submission of documentation for un-reimbursed claims. 101 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 213 COMPONENT UNITS Component units are tied to the County with some board control. They operate as a separate fund hut 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-911 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 911 emergency telephone service program in Weld County. 102 103 COUNTY OF WELD STATE OF COLORADO Combining Balance Sheet Non -Major Governmental Funds December 31, 2013 Conservation Public Health Solid Waste Trust Fund Fund Fund ASSETS Cash and investment Receivables (net of allowance for uncollectibles): Current property taxes Delinquent property taxes Accounts Inventories Other assets Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued liabilities Other liabilities Due to other County funds Unearned revenue Unexpended grant revenue Total Liabilities Fund Balances: Nonspendable Restricted Committed Total Fund Balances Total Liabilities and Fund Balances $ 370,619 $ 1,952,489 $ 1,550,697 718,243 143,545 3,940 $ 370,619 $ 2,674,672 $ 1,694,242 370,619 40,176 216,248 20,900 139,138 583 878 416,462 1,461 3,940 2,254,270 370,619 2,258,210 1,692,781 1,692,781 $ 370,619 $ 2,674,672 $ 1,694,242 104 Total Law Nonmajor Enforcement Governmental Authority Fund Funds $ $ 3,873,805 861,788 3,940 $ $ 4,739,533 40,759 216,248 20,900 140,016 417,923 3,940 2,624,889 1,692,781 4,321,610 $ $ 4,739,533 105 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, 2013 Conservation Public Health Solid Waste Trust Fund Fund Fund REVENUES: Taxes: Taxes Intergovernmental Charges for services Miscellaneous Total Revenues EXPENDITURES: Current: Public Safety Public health and welfare Culture and recreation Total Expenditures 450,659 2,408 453,067 406,648 406,648 $ - $ 3,092,533 1,566,945 123,222 4,782,700 8,081,450 1,440,065 1,440,065 166,375 8,081,450 166,375 Excess of Revenues Over (Under) Expenditures 46,419 (3,298,750) 1,273,690 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 4,169,382 592,909 4,169,382 (592,909) 46,419 870,632 680,781 324,200 1,387,578 1,012,000 $ 370,619 $ 2,258,210 $ 1.692,781 106 Law Enforcement Authority Funds $ 17,202 17,202 17,202 17,202 $ Total Nonmajor Governmental Funds $ 17,202 3,543,192 3,007,010 125,630 6,693,034 183,577 8,081,450 406,648 8,671,675 (1,978,641) 4,169,382 592,909 3,576,473 1,597,832 2,723,778 - $ 4,321,610 107 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, 2013 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 Total Other Financing Sources Net Change in Fund Balance Fund Balance at Beginning of Year Fund balance at End of Year Original Final Actual Variance $ 7,200,000 $ 7,200,000 $ 7,177,768 $ (22,232) 7,200,000 100,000 300,000 7,600,000 7,200,000 100,000 300,000 7,600,000 15,983,198 28,866,394 15,983,198 28,866,394 4,500,000 4,500,000 (8,383,198) (16,766,394) 17,316,668 6,429 6,429 7,184,197 127,464 156,764 100,000 7,568,425 (15,803) 27,464 (143,236) 100,000 (31,575) 10,568,950 18.297,444 10,568,950 18.297,444 4,500,000 4,500,000 1,499,475 18,265;869 17,316,668 17,316,668 $ 8,933,470 $ 550,274 $ 18.816.143 $ 18,265.869 108 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, 2013 Budgeted Original Final Actual Variance REVENUES Intergovernmental: State lottery Miscellaneous: Earnings on deposits Total Revenues EXPENDITURES Culture and Recreation: Land improvements Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year Fund balances at End of Year $ 376,000 $ 376,000 $ 450,659 $ 74,659 3,500 3,500 379,500 379,500 2,408 (1,092) 453,067 73,567 406,647 406,647 406,648 (1) 406,647 406,647 406,648 (1) (27,147) (27,147) 46,419 324,200 324,200 324,200 73,566 $ 297,053 $ 297,053 $ 370,619 $ 73,566 109 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, 2013 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 Total Expenditures Other Financing Sources (Uses): Transfers - In: Non Departmental Total Other Financing Sources Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balance at End of Year Original Final Actual Variance $ 3,039,624 $ 3,039,624 $ 3,092,533 $ 52,909 3,039,624 3,039,624 3,092,533 1,447,776 1,447,776 1,447,776 1,447,776 5,000 7,000 28,666 40,666 4,528,066 175,000 1,431, 783 4,049,638 2,727,414 313,613 8,697,448 5,000 7,000 28,666 40,666 1,566,945 1,566,945 9,545 91,312 22,365 123,222 4,528,066 4,782,700 175,000 1,431,783 4,049,638 2,637,014 313,613 182,809 1,202,472 3,918,706 2,543,477 233,986 8,607,048 8,081,450 8,697,448 8,607,048 8,081,450 4,169,382 4,169,382 4,169,382 4,169,382 4,169,382 4,169,382 90,400 1,387,578 1,387,578 870,632 1,387,578 52,909 119,169 119,169 4,545 84,312 (6,301) 82,556 254,634 (7,809) 229,311 130,932 93,537 79,627 525,598 525,598 780,232 $ 1,387,578 $ 1,477,978 $ 2,258,210 $ 780,232 110 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, 2013 Budgeted Original Final Actual Variance REVENUES Landfill surcharge Total Revenues EXPENDITURES Miscellaneous: Solid waste Total Expenditures Other Financing Sources (Uses): Transfers - Out: General Fund Health department Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balances at Beginning of Year $ 730,000 $ 1,200,000 $ 1,440,065 $ 240,065 730,000 1,200,000 137,091 607,091 137,091 607,091 85,000 507,909 (592,909) 85,000 507,909 1,440,065 240,065 166,375 440,716 166,375 440,716 85,000 507,909 (592,909) (592,909) 680,781 680.781 1,012,000 1,012,000 1,012,000 Fund Balances at End of Year $ 1,012,000 $ 1,012,000 $ 1,692,781 680,781 111 COUNTY OF WELD STATE OF COLORADO Bebee Draw Law Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2013 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes Specific ownership taxes Penalties & Interest Total Revenues EXPENDITURES Miscellaneous Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year $ 13,454 $ 13,454 $ 13,168 $ (286) 1,000 1,000 800 (200) (36) (36) 14,454 14,454 14,454 14,454 14,454 14,454 $ - $ 13,932 (522) 13,932 522 13,932 522 112 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, 2013 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes Specific ownership taxes Penalties & Interest Total Revenues EXPENDITURES Miscellaneous Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year $ 1,472 $ 1,472 $ 1,472 $ 100 100 180 6 1,572 1,572 1,572 1,572 1,572 1,572 $ - $ 80 6 1,658 86 1,658 (86) 1,658 (86) $ _ $ 113 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, 2013 Budgeted Original Final Actual Variance REVENUES Taxes: General property taxes Total Revenues EXPENDITURES Miscellaneous Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year $ 1,427 $ 1,427 $ 1,612 $ 185 1,427 1,427 1,427 1,427 1,427 1,427 $ 1,612 185 1,612 (185) 1,612 (185) $ 114 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, 2013 Budgeted REVENUES Intergovernmental: State Grants Total Intergovernmental Miscellaneous: Earnings on deposits Miscellaneous Total Miscellaneous Total Revenues EXPENDITURES Rent assistance Supplies Depreciation Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year Original Final Actual $ 2,590,572 $ 2,590,572 $ 2,552,813 2,590,572 2,590,572 2,590,572 2,590,572 2,319,314 269,859 2,319,314 269,859 2,589,173 2,589,173 1,399 1,399 $ 1,399 2.552,813 8,926 35,032 43,958 2,596,771 2,465,814 275,920 1,466 2;743,200 (146,429) 2,476,046 $ 1,399 $ 2,329,617 Variance $ (37,759) (37,759) 8,926 35,032 43,958 6,199 (146,500) (6,061) (1,466) (154;027) (147,828) 2,476,046 $ 2,328,218 115 COUNTY OF WELD STATE OF COLORADO E-911 Authority Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2013 Budgeted Original Final Actual Variance REVENUES Miscellaneous: Earnings on deposits Charge for service Miscellaneous Total Revenue EXPENDITURES Personnel Services Depreciation Purchased services Supplies Total Expenditures Net Change in Fund Balance Fund Balances at Beginning of Year $ 21,000 $ 21,000 $ 25,287 $ 4,287 2,250,000 2,250,000 2.485,200 235;200 5,054 5,054 2,271,000 2,271,000 4,000 475,816 1,075,481 97,339 475,816 1,079,481 97,339 1,652,636 1,652,636 2,515,541 244,541 388,979 917,871 71,653 86,837 161,610 25,686 1,378,503 274,133 618,364 618,364 1,137,038 (29,592) 5,240,594 5,240,594 5,240,594 Fund Balances at End of Year $ 5,858,958 $ 5,858,958 $ 6,377,632 $ (29,592) 116 hi to \ I f f 8 T: y y, 117 The public report burden for this information collection is estimated to average 380 hours annually. Financial Planning 02/01 Form # 350-050-36 LOCAL HIGHWAY FINANCE REPORT City or County: County YEAR ENDING : December 2013 This Information From The Records Of County of Weld: Prepared By: Barbara Connolly Phone: (970) 356-4000 X 4445 REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE I. DISPOSITION OF HIGHWAY -USER ITEM 1. Total rcccipts available A. Local Motor -Fuel Taxes PURPOSES B. Local Motor -Vehicle Taxes Ill. DISBURSEMENTS C. Receipts from State Highway- User Taxes FOR D. Receipts from Federal Highway Administration ROAD 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 . u . oses II. RECEIPTS FOR ROAD AND STREET AND STREET PURPOSES ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway -user taxes 1. Capital outlay (from page 2) 7,115,700 a. Motor Fuel (from Item I.A.S.) 2. Maintenance: 26,800,283 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 2. General fund appropriations 5,000,000 b. Snow and ice removal 409,446 3. Other local imposts (from page 2) 16,333,898 c. Other 281,938 4. Miscellaneous local receipts (from page 2) 21,633,151 d. Total (a. through c.) 691,384_ 2,586,364 5. Transfers from toll facilities 4. General administration & miscellaneous 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 37,193,731 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. _ c.) 0 a. Interest 7. Total (1 through 6) 42,967,049 b. Redemption B. Private Contributions c. Total a. + b. U C. Receipts from State government (from page 2) 2. Notes: 12,146,248 a. Interest D. Receipts from Federal Government (from page 2) b. Redemption 673,506 c. Total (a. + b.) 0 E. Total receipts (A.7 + B + C + D) IV. 55,786,803 LOCAL HIGHWAY (Show all entries 3. Total (I.c + 2.c) 0 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 37,193,731 DEBT STATUS at par) Opening Debt Amount Issued Redemptions Closing Debt A. Bonds Total 0 1. Bonds Refunding Portion B. Notes (Total) V. LOCAL ROAD AND STREET FUND BALANCE A. Beginning Balance B. Total Receipts r. Total Disbursementl D. Ending Balance E. Reconciliation 33,727,718 55,786,803 I 37,193,731 I 52,320,790 0 Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE 1 (Next Page) 118 2013 Local Highway Finance Report.xls LOCAL HIGHWAY FINANCE REPORT STATE: Colorado YEAR ENDING (nun/yy): December 2013 II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM AMOUNT ITEM AMOUNT A.3. Other local im i osts: I .. M 11: 1 .1 . a. Property Taxes and Assessments 8 987,576 a. Interest on investments 38,743 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 e. Sale of Surplus Property 4. Licenses f. Charges for Services 1,570,237 5. Specific Ownership &/or Other 7,346322 g. Other Misc. Receipts 1,348,445 6. Total (1. through 5.) 7,346,322 h. Other 18,675,726 c. Total a. + b. 16,333,898 (Carry forward to page 1) i. Total a. throu_h h. 21,633,151 (Carry forward to page 1) ITEM AMOUNT ITEM AMOUNT C. Recei ' ts from State Government D. Recei I ts from Federal Government 1. Hi _hwa -user taxes 9,719,239 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 359,254 a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 340,304 d. Federal Transit Admin d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers e. Other (Specify) 2,086,705 f. Other Federal 314,252 f. Total (a. through e.) 2,427,009 g. Total (a. through f.) 673 506 4. Total 1. -1- 2. -1- 3. 12,146,248 3. Total 1. -1- 2. • (Carr • forward to • a • e 1) III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL A.1. Ca u ital outla : a. Right -Of -Way Costs ON NATIONAL HIGHWAY SYSTEM a) OFF NATIONAL HIGHWAY SYSTEM b) 574,672 "I'O'I AL (c) 574,672 b. En:ineerin: Costs c. Construction: 4.189,225 4,189,225 0 (1). New Facilities (2). Capacity Improvements 0 (3). System Preservation 2,351,803 2,351,803 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4) 0 2,351,803 2,351,803 d. Total Capital Outlay (Lines l.a. + 1.b. + 1.c.5) 0 7,115,700 7,115,700 (Carry forward to page 1) Notes and Comments: FORM FIIWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 119 COUNTY OF WELD STATE OF COLORADO Combining Statement of Net Position Internal Service Funds December 31, 2013 Health Motor Vehicle Insurance Insurance Fund Fund Fund ASSETS Current Assets: Cash and cash equivalents Receivables (net of allowances for uncollectables): Current property taxes Delinquent property taxes Accounts Due from other county funds Inventories 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 $ 989,137 $ 7,551,542 $ 3,572,220 1,037,615 5,949 97,181 2,129,882 1,131,815 17,500 2,048,377 39,684,100 (22,883,259) 19;998,533 5,833 2,025,210 6,370 403,543 7,557,375 6,007,343 $22;128,415 $ 7,557,375 $ 6,007,343 LIABILITIES DEFERRED INFLOWS AND NET POSITION Current Liabilities: Accounts payable Accrued liabilities Due to other county funds Unearned revenues Total Current Liabilities Deferred Inflows of Resources: Property Taxes Total Deferred Inflows of Resources $ 654,032 30,497 684,529 Total Liabilities and Deferred Inflows 684,529 Net Position Invested in capital assets Restricted for: Insurance Claims Unrestricted Total net position 19,998,533 1,445,353 $ 38,255 $ 228,986 2,547,177 1,692,961 5;115 1,336,426 3,921,858 1,927,062 2,035,238 2,035,238 3,921,858 3,962,300 3,635,517 2,045,043 $21,443,886 $ 3,635,517 $ 2,045,043 120 Phone Services Fund $ 1,106,012 18,819 1,124,831 1,482,682 (1,011,218) 471,464 $ 1,596,295 $ 4,575 19,425 24,000 24,000 471,464 1,100,831 Total Internal Service Funds $13,218,911 2,025,210 6,370 1,062,267 5,949 97,181 403,543 16,819,431 1,131,815 17,500 2,048,377 41,166, 782 (23,894,477) 20,469,997 $37,289,428 $ 925,848 4,259,563 35,612 1,336,426 6,557,449 2,035,238 2,035,238 8,592,687 20,469,997 5,680,560 2,546,184 $ 1,572,295 $28,696,741 121 COUNTY OF WELD STATE OF COLORADO Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the fiscal year ended December 31, 2013 Operating revenues: Employer & Employee 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 Miscellaneous Interest income Grants Gain (loss) on disposition of assets Judgements and damages Interest expense Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Transfers in Changes in net assets Total net position - beginning Total net position - ending Motor Vehicle Fund 9,097,640 9,097,640 2,496,603 4,152,008 3,363,116 190,084 10,201,811 (1,104,171) 3,949 1,372,535 241,694 5,115 1,623,293 519,122 400,000 919,122 20,524,764 $ 21,443,886 Health Insurance Fund Insurance Fund $ 15,079,777 $ 818 71,652 15,080,595 8,070 1,330,975 10,332 11,663,678 71,652 3,072 38,652 500,025 1,665,093 13,013,055 2,206,842 2,067,540 (2,135,190) 2,067,540 2,067,540 1,567,977 1,997,895 31,255 126,487 2,155,637 20,447 20,447 2,024,596 $ 3,635,517 $ 2,045,043 122 Phone Services Total Internal Fund Service Funds 1,209,188 $ 15,079,777 10,379,298 1,209,188 25,459,075 179,505 19,120 791,084 257,270 49,751 179,505 2,526,865 6,312,719 500,025 3,620,386 250,167 13,328,771 1,296,730 26,718,438 (87,542) (1,259,363) 1,997,895 3,949 31,255 1,372,535 241,694 131,602 3,778,930 (87,542) 2,519,567 400,000 (87,542) 1,659,837 $ 1,572,295 2,919,567 25,777,174 $ 28,696,741 123 COUNTY OF WELD STATE OF COLORADO Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended December 31, 2013 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 Cash and Cash Equivalents at End of Year 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 Motor Vehicle Fund Health Insurance Fund 195,626 8,735,379 15,236,723 (6,694,455) (12,803,001) (181,106) (4,919) 5,115 3,949 2,064,508 400,000 265,026 665,026 (5,703,945) 294,642 (5,409,303) (2,679,769) 3,668,906 989,137 (1,104,171) 3,363,116 5,115 3,949 37,932 (5,949) 6,208 (41,321) (200,371) 3,168,679 2,064,508 29,487 2,428,803 2,428,803 5,122,739 7,551,542 2,067,540 (5,834) 1,500 1,473 213,853 (700) 150,971 361,263 2,428,803 Insurance Phone Service Total Internal Fund Fund Service Funds - 77,359 272,985 76,767 1,149,968 25,198,837 (2,527,623) (661,101) (22,686,180) - (94,177) (280,202) - (229,564) (229,564) 126,487 - 131,602 - - 3,949 (2,324,369) 242,485 2,411,427 1,995,122 1,995,122 400,000 265,026 1,995,122 - 2,660,148 (70,145) (5,774,090) 294,642 (70,145) (5,479,448) 33,091 - 33,091 (296,156) 172,340 (374,782) 3,868,376 933,672 13,593,693 3,572,220 1,106,012 13,218,911 (2,135,190) (87,542) (1,259,363) - 257,270 3,620,386 126,487 - 131,602 - - 3,949 4,537 7,024 43,659 - 9,990 4,041 - - 7,708 (403,543) 53,256 (348,814) 81,850 3,278 43,807 912 (791) 213,974 5,115 - (195,956) (4,537) - 146,434 (189,179) 330,027 3,670,790 (2,324,369) 242,485 2,411,427 29,487 125 COUNTY OF WELD STATE OF COLORADO Combining Statement of Changes in Assets and Liabilities Fiduciary Funds For the fiscal year ended December 31, 2013 Balance Balance 1/1/2013 Additions Deductions 12/31/2013 GENERAL AGENCY FUND Assets: Cash and investments Total Assets Liabilities: Accounts payable Due to other governments Total Liabilities PAYROLL AGENCY FUND Assets: Cash and investments Accounts receivable Total Assets Liabilities: Accounts payable Total Liabilities EMPLOYEE FLEXIBLE SPENDING Assets: Cash and investments Accounts receivable 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 $ 6,230,213 $ 350,003,565 $ 351,071,015 $ 5,162,763 $ 6,230,213 $ 350,003,565 $ 351,071,015 $ 5,162,763 $ 25 $ 60,600 $ 60,625 $ 6,230,189 349,827,567 350,894,993 5,162,763 $ 6,230,214 $ 349,888,167 $ 350,955,618 $ 5,162,763 $ 103,929 $ 27,460,666 $ 27,358,449 $ 206,146 18,025 41,986 59,308 703 $ 121,954 $ 27,502,652 $ 27,417,757 $ 206,849 $ 121,954 $ 28,827,071 $ 28,742,176 206,849 $ 121,954 $ 28,827,071 $ 28,742,176 $ 206,849 $ 50,987 $ 735,084 $ 735,032 $ 51,039 46 - 46 $ 51,033 $ 735,084 $ 735,078 $ 51,039 $ 51,032 $ 51,039 $ 51,032 51,039 $ 51,032 $ 51,039 $ 51,032 $ 51,039 $ 6,385,129 $ 378,199,315 $ 379,164,496 $ 5,419,948 $ 18,071 41,986 59,354 703 $ 6,403,200 $ 378,241,301 $ 379,223,850 $ 5,420,651 $ 173,011 $ 28,938,710 $ 28,853,833 $ 257,888 6,230,189 349,827,567 $ 350,894,993 5,162,763 $ 6,403,200 $ 378,766,277 $ 379,748,826 $ 5,420,651 126 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 December 31, 2013 Budgeted Operating Revenues: Charges for Service Total Operating Revenues Operating Expenses: Personnel services Supplies Purchased services Depreciation Other Total Operating Expenses Operating Income (Loss) Nonoperating Revenues: Federal grant Fees Total Nonoperating Revenues Income(loss) before contributions and transfers Net Income (Loss) Net Position at Beginning of Year Net Position at end of Year Original Final Actual $ 15,200 $ 15,200 5.000 10,200 15,200 $ - $ 6,096 63,092 2,810 71,998 (71,998) 71,998 71,998 Variance (15,200) (15,200) (1,096) (52,892) (2,810) (56,798) (71,998) 71,998 71 998 $ 127 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, 2013 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): Miscellaneous Grants Gain (loss) on disposition of assets Judgements and damages Total Nonoperating Revenues(Expenses) Income(Loss) before contributions and transfers Transfers in Net Income (Loss) Net Position at Beginning of Year Net Position at End of Year Original Final $ 4,500,000 $ 5,537,500 2,850,000 2,850,000 7.350.000 8,387,500 2.421,000 2,946,857 2,850,000 100,000 8.317,857 (967,857) 510.000 470.000 980,000 12,143 12.143 20, 524, 764 20,536,907 2,421,000 3,957,714 2,850,000 100,000 9,328,714 (941,214) 925,000 470,000 1,395,000 453,786 (400,000) 53,786 20, 524, 764 $ 20, 578, 550 Actual $ 5,756,018 3,341,622 9,097,640 2,496,603 4,152,008 3,363,116 190,084 10,201,811 Variance 218,518 491,622 710.140 (75,603) (194,294) (513,116) (90,084) (873,097) (1,104,171) (162,957) 3,949 1,372,535 241,694 5,115 1,623,293 519,122 400,000 919,122 20,524,764 $ 21,443,886 3,949 447;535 (228,306) 5,115 228,293 65,336 800.000 865.336 865,336 128 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, 2013 Budgeted Operating Revenues: Employer & Employee Premiums Operating Expenses: Supplies Purchased services Other Claims Total Operating Expenses Operating Income (Loss) Net Income (Loss) Net Position at Beginning of Year Net Position at End of Year Original Final Actual Variance $ 16,800,000 $ 16,800,000 $ 15,080,595 $ (1,719,405) 64.000 673,912 1,468,396 14,593,692 16,800,000 1,567,977 64,000 673,912 1,468,396 14,593,692 16, 800, 000 1,567,977 8,070 1,330,975 10,332 11,663,678 13,013,055 2,067,540 2,067,540 1,567,977 55,930 (657,063) 1,458,064 2,930,014 3,786,945 2.067,540 2,067,540 $ 1,567,977 $ 1,567,977 $ 3,635,517 $ 2,067,540 129 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, 2013 Budgeted Operating Revenues: Charges for services Operating Expenses: Supplies Purchased services Insurance and bonds Other Claims Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Taxes Penalties & interest Interest income Judgments and damages Total Nonoperating Revenues (Expenses) Net Income (Loss) Net Position at Beginning of Year Original $ 145,000 3.500 40,200 850,000 500 1,320,800 2.215,000 (2.070,000) 2,000,000 50.000 20.000 2.070,000 2.024.596 Final $ 145,000 3,500 40,200 850,000 500 1,320,800 2,215,000 (2,070,000) 2,000,000 50,000 20,000 2,070,000 2,024,596 Actual Variance $ 71,652 $ (73,348) 3,072 38,652 500,025 1,665,093 2,206,842 (2,135,190) 1,996,059 1,836 31,255 126,487 2,155,637 20,447 2,024,596 428 1,548 349,975 500 (344,293) 8,158 (65,190) (3,941) 1,836 (18,745) 106;487 85,637 20,447 Net Position at End of Year $ 2,024,596 $ 2,024,596 $ 2,045,043 $ 20,447 130 COUNTY OF WELD STATE OF COLORADO Phone Service Fund Schedule of Revenues. Expenses and Changes in Net Position - Budget and Actual For the fiscal year ended December 31, 2013 Budgeted Operating Revenues: Charges for services Operating Expenses: Personnel services Supplies Purchased services Depreciation Other Total Operating Expenses Operating Income (Loss) Net Income (Loss) Net Position at Beginning of Year Original Final Actual Variance $ 1.354.772 $ 1,354,772 $ 1,209,188 $ (145,584) 182.778 14,100 878,141 230,000 49,753 1.354,772 1.659,837 182,778 14,100 878,141 230,000 49,753 179,505 19,120 791,084 257,270 49,751 1,354,772 1,296,730 (87,542) (87,542) 1,659,837 1,659,837 3,273 (5,020) 87,057 (27,270) 2 58,042 (87,542) (87,542) Net Position at End of Year $ 1,659,837 $ 1,659,837 $ 1,572,295 $ (87,542) 131 hi to \ I f f 8 T: y y, 132 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 Page 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 Information 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 data to help the reader understand how the information in the government's financial report relates to the services the government provides and the acitivities it performs. 134 140 147 151 156 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 133 COUNTY OF WELD STATE OF COLORADO Net Position by Component Last Ten Years (accrual basis of accounting) Fiscal Year 2004 2005 2006 2007 2008 Governmental activities Invested in capital assets, net of related debt Restricted for Programs Emergencies Claims Public Works Other Unrestricted Total governmental activities net position S 238.640,911 $ 231,271,356 $ 233,626.280 S 249.237,323 $ 253,009,697 4,199, 374 3,500,000 1,748,949 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 4,033,041 5,000,000 1,270,613 30,759,296 39,782,093 48,545.826 40.122,962 37,397,773 278,848,530 281,498,089 291,874,507 300,097,258 300,711,124 Business -type activities Invested in capital assets, net of related debt S 864.425 $ 809,643 $ 852,705 S 987.445 $ 1,076,125 Unrestricted (4.761) 1,508,322 2,118.077 2.191,453 2,776,179 Total business -type activities net position S 859.664 $ 2.317.965 $ 2.970.782 S 3.178.898 $ 3.852.304 Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net position S 239,505,336 $ 232,080,999 $ 234,478,985 S 250,224,768 $ 254,085,822 9,448,323 10,444,640 9,702,401 10,736,973 10,303,654 30.754,535 41,290,415 50,663.903 42.314,415 40,173,952 S 279.708.194 $ 283.816.054 $ 294.845.289 S 303.276.156 $ 304.563.428 2009 S 256,826,307 4,524,110 6,000,000 2,270,613 40,819,002 310,440,032 2010 $ 254,893,784 4,912,503 6,000,000 4,734,410 66,081,025 336,621,722 2011 $ 252,365,188 5,360,845 6,000,000 4,734,409 74,131.389 2012 5 260,630,887 6,197, 551 6,000,000 4,734,409 39,542,250 1.000.426 50.626,441 342.591,831 368,731,964 2013 $ 270,069,712 5,736,608 6,000,000 4,734,408 63,934,016 1,485,431 58,827,919 S 1,011,224 $ 1,305,614 $ 1,524.148 S - $ 2.478,408 3,194,266 3,526.143 - (1,323) L.3,21&32 Si $ 5.050.2U S - $ (1,323) 410,788,094 S 257,837,531 $ 256,199,398 $ 253,889,336 S 260,630,887 $ 270,069,712 12.794,723 15,646,913 16,095.254 57,474,636 81,890,463 43.297,410 69,275,291 77,657.532 50.626,441 58,826,596 S 313,929.61 $ 341,121.602 $ 347.642.122 S 368,731,964 $ 410,786,771 COUNTY OF WELD STATE OF COLORADO Changes in Net Position Last Ten Years (accrual basis of accounting) 2004 2005 2006 2007 2008 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 activities: Paramedic service Crime Lab $ 21,174,906 $ 23,047,725 $ 26,641,373 $ 35.301,327 $ 31,019,065 28,425,957 30,449,441 32,562,998 36,717,165 40,496.490 32,688,807 36,919,372 37,068,628 34.637,731 40,795,016 23,538,421 24,843,147 26,179,807 31,026,419 35,117,225 1,005,697 771,295 1,549,379 1.008,703 1,077.743 12,646,785 13, 736,745 11, 747, 943 14,403,662 14, 601, 330 358,054 340,411 322,293 335,771 119,838.627 130,108,136 136,072,421 153,430,778 163,106, 869 9,738,148 6371,413 7,156,700 8.444,840 9.289.761 Total primary government expenses $ 129,576,775 $ 136,479,549 $ 143,229,121 $ 161,875,618 $ 172,396,630 Program Revenues Governmental activities: 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 Crime Lab Total primary government revenues Net (Expenses)/Revenue Governmental activities Business -type activities Total primary government net $ 8,086,983 $ 9,792,423 $ 12,265,623 $ 10.043,033 $ 11,681,170 7,609,527 5,430,422 6,378,749 4,998,285 5,814.979 1,157,634 3,433,713 4,023,310 3.566,774 3,518.926 12,699,858 13, 664,206 14,949, 936 17, 504, 660 19, 870, 091 309,948 333,293 345,990 453,352 468.488 862,223 1,156,012 1,186,129 838,871 756,698 27,124,685 27,885,047 30,045,943 36,500,297 33,134,702 - - 4,738,627 25.454 57,850,858 61,695,116 69,195,680 78,643,899 75,270,508 10,035,874 7,829,714 7,809,516 8.652,955 9.113.166 67,886.732 69,524,830 77,005,196 87.296,854 84,383,674 (61,987,769) (68,413,020) (66,876,741) (74,786,879) (87,836,361) 297,726 1,458,301 652,816 208,115 (176,595) $ (61,690,043) $ (66,954,719) $ (66,223,925) $ (74,578,764) $ (88.012,956) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes $ 50,785,919 $ 56,382,533 $ 62,124,792 $ 67,215,993 $ 72,735,158 Specific Ownership 6,795,897 6,627,991 6,614,819 7,056,071 7,035,189 Other 3,333,336 3,733,025 5,266,786 3,546,134 5,454,324 Royalties Miscellaneous Unrestricted investment earnings 1,644,979 2,679,442 4,539,172 5,191,430 4,075,554 Donated capital assets 0 355,784 7,602 - Gain on sale of capital assets (2,358,185) - - - Transfers - - (1,300,0001 (850.0001 Total governmental activities 60,201,946 69,778,775 77,253,171 83.009,628 88,450,225 Business -type activities: Paramedic service (5,611) 850.000 Crime Lab - - - Total primary government $ 60,196,335 $ 69,778,775 $ 77,253,171 $ 83,009,628 $ 89,300,225 Change in Net Position Governmental activities Business -type activities Total primary government $ (1,785,823) $ 1,365,755 $ 10,376,430 $ 8,222,749 $ 613,864 292,115 1,458,301 652,816 208,115 673.405 $ (1,493,708) $ 2,824,056 $ 11,029,246 $ 8,430,864 $ 1.287,269 2009 $ 31.738,352 40,649,718 31.123,536 39,882,326 1.013,683 15.546,027 159,953,642 9.310,991 2010 $ 31,497,117 40, 551,255 34,662.990 37,946,589 1,215,481 9,262,302 155,135,734 6.349.218 2011 $ 31,930,407 42,613,038 37,519,293 35,881, 864 1,123,268 8,115,722 157.183,592 5,964.112 2012 $ 34,789,583 44,263,029 37,220,963 36,968,434 1,290,618 7,302,875 161,835.502 2,846,859 2013 $ 43,436,041 47,925,745 39,953,729 39,341,405 1,521,540 7,932,382 180.110,842 73,321 $ 169,264,633 $ 161,484,952 $ 163.147,704 $ 164,682.361 $ 180.184,163 $ 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 84.375,672 $ 10,117,110 7,021.139 1,932.790 21,311,474 549,483 834,429 27,858.758 69.625,183 5.859.468 $ 12,644.748 6,023,109 2,022,037 19,360,887 619,316 822,309 24,034,211 $ 11,580.340 7,406,430 3,439,523 21,865,091 725,868 381,199 23,821,017 65.526.617 69,219.468 6,514.522 1,954,205 75.484,651 72,041.139 71,173,673 $ 12,593.578 9,151,431 4,473,145 23,919, 388 928,631 493,180 32,235, 512 83,794.865 71,998 83,866.863 (83,141,288) (85.510,551) (91,656.975) (92,616,034) (96,315.977) (1.747,673) (489.750) 550,410 (892,654) (1,323) $ (84,888,961) $ (86.000.301) $ (91,106.565) $ (93,508,688) $ (96,317.300) $ 75,047,892 6.167, 691 3.472,065 1.707,235 5.468,676 2.391,636 $ 95,251,609 6,018.849 845.578 2,556,866 6,415.403 2,103.942 (1.385,000) (1.500,0001 92.870,195 111.692,247 1.385,000 1.500.000 $ 76,808.723 5,743,784 1,794,415 7,169,988 4,305,446 1,804,728 97,627.084 $ 94.255,195 $ 113.192,247 $ 97,627,084 $ 9.728,907 $ 26.181,696 $ (362.673) 1.010.250 $ 9,366,234 $ 27.191,946 $ $ 88,229.134 7,302,111 2,410,032 12,083,892 3,231,877 1,341,489 4,157,638 118,756.173 (4,157,638 114,598,535 $ 105.940.567 7,347,302 2,291,667 17,325,773 4,285,545 1,181,245 138.372.099 138,372,099 5,970.109 $ 26,140.139 $ 42,056.122 550,410 (5,050,292) (1,323) 6,520.519 $ 21,089.847 $ 42,054.799 137 COUNTY OF WELD STATE OF COLORADO Fund Balances of Governmental Funds Last Ten Years (modified accrual basis of accounting) 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 * 2004 2005 2006 2007 2008 $ 1,516,298 $ 1,486,188 $ 946,073 $ 1,081,217 $ 1,161,271 $ 6,699,941 $ 7,648,920 $ 10,630,592 $ 7,007,528 $ 10,645,617 $ 8,216,239 $ 9,135,108 $ 11,576,665 $ 8,088,745 $ 11,806,888 $ 4,139,435 $ 8,834,511 $ 19,019,004 $ 12,074,704 $ 12,631,501 25, 360, 820 697,779 26,155,751 25,281,236 27,791,990 3,511,495 0 272,790 25,032,274 (2.064,635) Total for all governmental funds $ 38.414,273 $ 47,636,865 $ 55,876,905 $ 48,228,229 $ 47,406,028 * Difference in fund balance presentation is due to implementation of GASB 54 in 2011 2009 2010 2011 2012 2013 $ 846,808 $ 1,882,253 $ 9,960,565 $ 9,967,335 $ 10,807,373 $ 11,849,588 $ 9,861,718 $ 7,138,513 32,475,341 1,617,052 57,755,218 6,362,877 $ 687,239 $ 1.216.973 $ 677,240 6,000,000 6.863.582 7,114,812 1,927,404 2.305.309 2,089,993 1,808,529 615.428 11, 527, 256 10,691,668 10.126.783 165,207 $ 21,114,840 $ 21.128.075 $ 21.574.508 $ 963,566 $ 1.020.322 $ 1,321,279 36,493,043 40.377.056 57,704,336 32,295,274 46.347.303 55,508,238 $ 54,761,484 $ 83,106,196 $ 90,866,723 $ 108.872.756 $ 136.108.361 COUNTY OF WELD STATE OF COLORADO Changes in Fund Balances, Governmental Funds Last Ten Years (modified accrual basis of accounting) 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 Debt Service as a percentage of noncapital expenditures 2004 S 57,698,294 1,834,849 40,652,682 69,538 7,345,819 5,329,931 7,454,831 2005 $ 63,261,095 2,119,419 41;110,202 204.530 8.618.819 7,582.510 8.175.907 2006 $ 69,178,181 3,188,354 44,982,577 135,908 8,232,213 13,377,598 8,602,079 2007 $ 74.627,631 2,129, 731 53;886,023 416.668 7.800.131 9,567.707 8.061.587 2008 $ 80,182,212 2,089,925 52,887,281 295,246 8,898,865 12,523,751 7,845,617 120, 385, 944 131,072,482 147,696,910 156,489,478 164,722,897 20,566, 315 27,475, 345 22,734,695 23,046,109 1,007,208 12,450,198 6,923,230 358,054 22.384,671 29.834,629 25.490,667 24,284,817 775.903 13.572,861 5.165.931 340,411 25, 366, 204 31,881,427 26,315,156 25,993,962 1,550,929 11,746, 242 14,980,649 322,293 32.605,930 35,945,956 31.798,757 30.940,641 1.011,311 14.449,197 17.050,592 335,771 29,061,657 38,564,419 36,643,514 34,585,229 1,077,592 14,459,482 9,883,207 114, 561,154 121,849,890 138,156, 862 164,138,155 164,275,100 5,824,790 9.222.592 9,540,048 (7.648.677) 447,797 4,299,153 7.436,144 11,309,847 4.340.010 4,914,085 4,299,153 7.436.144 12,609,847 4.340.010 6,184,085 (1,300,000) (1,270,000) 5,824,790 $ 9.222.592 $ 8,240,048 $ (7.648.677) S (822.203) 0.33% 0.29% 0.26% 0.23% 0.00% 140 2009 $ 84,642,477 1,467,282 61,100,082 323,411 8,939,683 7,132,908 7,546,475 171,152,318 28,311,209 38,668,759 29,595,637 39,287,986 1,014,422 14,622,541 9,911,307 161,411,861 9,740,457 2010 2011 $ 102.079.791 2,512,999 53,021;343 587.330 7,771.230 8.133, 573 8.827.457 $ 84,310,617 2,093,316 44,670,251 441,455 6,899, 382 15,397,352 9,445,288 182.933.723 163,257, 661 29.608.752 38,176,653 28, 524,940 36,850.368 1,214,300 9,086.301 8,627.695 30,964,059 40,657,128 30,834,148 35,187,959 1,127,873 7,880,482 7,795,485 2012 $ 97.903.945 2,968,095 45,601,958 319.091 7,781,755 18.968.975 10.392.181 183.936.000 31.777.518 43,328,129 37,843.853 36,852.403 1,291,707 7.400.591 7.589.459 152.089.009 154,447,134 166.083.660 30.844.714 8,810,527 7,583,632 7,157,161 9,968,632 9.657.161 (2,385,000) 15,807,328 16,857,328 (2,500.000) (1,050,000) 17.852.340 11,194,959 11.041.260 153.699 2013 $ 115,265,284 3,341,876 51,914,959 342,566 9,950,307 24,954,352 11,297,773 217,067,117 41,768,976 46,865,987 39,780,662 39,351,351 1,529,749 7,990,367 12,144,427 189,431, 519 27,635,598 13,770,733 14,170,733 (400,000) $ 7.355.457 $ 28.344.714 $ 7.760.527 $ 18.006.039 $ 27.235,598 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 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Vacant Land 105,868,950 115,005,330 110,566,010 132,402,840 125,609,000 114,462,060 107,499,350 82,601,960 76,770,990 67,644,470 Residential Property 851,446,760 972,251,070 1,051,061,180 1,218,082,640 1,258,374,790 1,147,417,980 1,161,670,030 1,110,455,180 1,126,143,600 1,125,171,520 Commercial Industrial Property Property Agricultural 448,526,350 153,747,260 158,581,990 507,867,420 155,227,960 172.592,990 538.352,810 194,235,560 175,708,230 631,036,750 214,051,130 96,371,890 654;957,800 216,214,910 97,874,960 703,405,460 281,991,090 100,747,790 713,727,230 338,066,670 100,999,290 700.148,970 343,525,350 117,189,830 741.004,020 405,141,700 120,086,240 717,135,660 444,712,190 141,969,440 Source: Office of the Weld County Assessor Note: Natural Resources 10,115,440 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 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. 142 Oil & Gas 969,984,640 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 State Assessed 295,147,000 403,287,500 386,413,500 412,859,500 487,797,900 538,504,800 593,020,000 615,803,700 650,106,300 707,171,100 Total Taxable Assessed Value 2,993,418,390 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 Estimated Actual Taxable Value 16,596,579,600 19,255,338,644 21,011,080,893 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 Total Direct Tax Rate Assessed Value as a Percentage of Actual Value 21.474 18.036% 19.957 18.776% 17.900 20.008% 16.804 19.686% 16.804 19.376% 16.804 24.038% 16.804 20.303% 16.804 24.369% 16.804 25.588% 16.804 21.048% COUNTY OF WELD STATE OF COLORADO Property Tax Rates Direct and Overlapping Governments Last Ten Years General Levy Year Government Road & Bridge Public Welfare Contingent Capital Insurance Tota Direct County 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 15.791 13.909 12.321 11.487 11.736 11.842 11.389 10.479 10.476 11.788 2.010 2.013 2.002 1.847 1.668 1.647 1.613 1.498 1.303 1.303 1.639 1.772 1.551 1.333 1.293 1.266 1.965 1.863 1.864 1.203 0.523 0.916 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 0.221 0.251 0.277 0.298 0.336 0.329 0.322 0.326 0.326 0.285 21.474 19.957 17.900 16.804 16.804 16.804 16.804 16.804 16.804 16.804 Overlapping Rates Levy Direct City of School Aims Weld Year County Greeley District 6 College Library 2004 21.474 11.274 46.453 6.322 3.249 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 6.302 3.261 The basis for the property tax rates is per 51,000 assessed valuation. Source: Office of the Weld County Assessor. 144 COUNTY OF WELD STATE OF COLORADO Principal Property Taxpayers Current Year and Nine Years Ago Noble Energy Inc Kerr-McGee Oil & Gas Onshore LP Petroleum Development Corp Public Service Company of Colorado (XCEL) Encana Oil & Gas (USA) Inc DCP Midstream LP Bonanza Creek Energy Inc Kerr McGee Gathering LLC EOG Resources Inc Vestas Blades America Inc Kerr-McGee Rocky Mountain Corp Patina Oil & Gas Corporation Eastman Kodak Company Merit Energy Duke Energy Field Services Inc Prima Oil & Gas Source: Weld County Assessor 2013 Taxable Assessed Value $ 1,551,265,612 1,129,933,753 270,406,669 239,660,400 203,241,512 147,155,680 121,795,457 105,314,600 84,574,816 64,687,420 $ 3,918,035,919 Percent Of Total County Taxable Assessed Rank Value 1 2 3 4 5 6 7 8 9 10 21.79% 15.87% 3.80% 3.37% 2.85% 2.07% 1.71% 1.48% 1.19% 0.91% 2004 Taxable Assessed Value Rank 40,358,480 101,246.200 78,768,780 6 3 4 33,150.100 9 345,574.340 298,148.540 37,486.180 40,564.600 31,004.620 34,999.910 55.04% S 1.041,301;750 1 2 7 5 10 8 Percent Of Total County Taxable Assessed Value 1.35% 3.38% 2.63% 11.54% 9.96% 1.25% 1.36% 1.04% 1.17% 34.79% 145 COUNTY OF WELD STATE OF COLORADO Property Tax Levies and Collections Last Ten Years Levy Collect Year Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Taxes Levied for the Fiscal Year (1) 53,414,937 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 Collected within the Ficsal Year of the Levy Tax Percent Amount (2) of Levy 53,094,454 59,395,927 64, 580,198 70, 575,408 74, 877,199 75,903,359 96,736,465 78,833,201 91,202,627 108,593;650 99.400% 99.425% 99.793% 99.904% 99.719% 98.930% 99.757% 99.790% 100.103% 99.215% Collections in Subsequent Years (3) (230,263) 210,799 58,767 327,098 167,705 159,944 235,955 167,862 Total Collections to Date Tax Percent Amount (3) of Levy 52, 864,191 59,606,726 64,638,965 70,643,162 75,044,904 76,063,303 96,972,420 79,001,063 91,202,627 108, 593,650 Source: 1) Office of the Weld County Assessor 2) YTD Treasurer's Tax Distribution 3) YTD Treasurer's Tax Distribution 2001 forward. Negative values reflect subsequent rebates and adjustments. 98.969% 99.777% 99.884% 100.000% 99.943% 99.139% 100.000% 100.002% 100.103% 99.215% 146 COUNTY OF WELD STATE OF COLORADO Direct and Overlapping Governmental Activities Debt December 31, 2013 Jurisdiction Cities & Towns Schools Special Districts Total Overlapping Net General Obligation Bonded Debt Outstanding $ 60,162,704 845,277,604 145,837,669 Percentage Applicable to Government (1) 89.48% 49.91% 68.24% Amount Applicable to Government (2) $ 53,833,995 421,860,151 99,520,018 $ 1,051,277,977 $ 575,214,164 Source: Debt outstanding provided by each governmental unit. Note: (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 jursidictions debt by the percentage of the jurisdiction's area inside and outside the County. 147 COUNTY OF WELD STATE OF COLORADO Legal Debt Margin Information Last Ten Years Legal Debt Margin Calculation for Fiscal Year 2013 Assesed Value, 2013 Debt Limit 3 percent of Assesed Value Total Bond Debt Installment Purchase Agreements $0 0 Total Amount of debt applicable to limit Legal Debt Margin Legal Debt Margin Information Last Ten Fiscal Years $ 7,118,834,517 213,565,036 0 $ 213,565,036 Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit 2004 $89,802,552 2005 2006 2007 $108,459,755 $126,118,475 $134,053,874 $89,802.552 $108,459,755 $126,118.475 $134,053,874 0.00% 0.00% 0.00% 0.00% Note: 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. 2008 2009 2010 2011 2012 $136,974,703 $173,123,816 $141,036,269 $162,655,885 $195,404,498 $136,974,703 $173,123,816 $141,036,269 0.00% 0.00% 0.00% $162,655.885 0.00% $195.404,498 0.00% 2013 $213,565,036 $213.565,036 0.00% COUNTY OF WELD STATE OF COLORADO Private Purpose Revenue Bonds December 31, 2013 INDUSTRIAL REVENUE BONDS: ISSUER Centennial Area Health Education Central GSSLB Association Nursing Home Greeley Center for Independence, Inc Office DEBT TYPE OF ISSUE OUTSTANDING FACILITY AMOUNT DATE BEGINNING OF YEAR ISSUED RETIRED 388,000 5/99 S186,148 0 21.520 2,020;000 10/98 975,000 0 60,000 Nursing Home Therapeutic 1,650,000 9/03 Center North Range Behavioral Health Office 4,500,000 5/07 TOTAL PRIVATE PURPOSE REVENUE BONDS 1,051,297 2,883,770 $5,096.215 0 1,051,297 0 134.400 $0 31.267,217 REVENUE BOND OUSTANDING END OF YEAR S164,628 S915,000 $0 $2,749.370 $3,828.998 150 COUNTY OF WELD STATE OF COLORADO Demographic and Economic Statistics Last Ten Years Year Population 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 217,652 221,957 229,377 236,908 244,515 251,220 252,825 254,759 263,691 263,691 Total Personal Income Per ($ billion) Capita Income 5.38 5.79 5.84 6.23 6.66 7.38 7.07 6.93 7.76 8.35 25,274 25,968 25,495 26,280 27,238 27,788 28,503 27,186 25,233 29,986 Unemployment Rate 5.40% 5.00% 3.80% 4.63% 6.30% 8.16% 9.80% 9.10% 8.70% 6.70% Source: Upstate Colorado in cooperation with University of Northern Colorado and the State of Colorado demographer. 151 COUNTY OF WELD STATE OF COLORADO Principal Employers Current Year and Nine Years Ago JBS Swift Beef Company Banner Health (NCMC) State of Colorado (includes UNC ) School District 6 State Farm Insurance Companies Weld County Government AIMS Community College Vestas City of Greeley Halliburton Energy Services Inc StarTek Inc Eastman Kodak Company Total Principal Employers Other Employers Total County Employment Source: Upstate Colorado 2013 Percent Of Total County Employees Rank Employment 4619 3000 3811 2400 1828 1413 872 870 812 800 20,425 109.245 129,670 1 2 3 4 5 6 7 8 9 10 3.56% 2.31% 2.94% 1.85% 1.41% 1.09% 0.67% 0.67% 0.63% 0.62% 15.75% 84.25% 100.00% 2004 Percent Of Total County Employees Rank Employment 3000 1 1866 5 1925 4 2180 3 2340 2 1389 8 1596 7 930 9 840 10 1650 6 17,716 79,346 97,062 3.09% 1.92% 1.98% 2.25% 2.41% 1.43% 1.64% 0.96% 0.87% 1.70% 18.25% 81.75% 100.00% hi to \ I f f 8 T: y y, 153 COUNTY OF WELD STATE OF COLORADO :ull-Time Equivalent County Government Employees by Function/Progran Last Ten Years 2004 2005 2006 2007 2008 Function/Program General government 241 247 256 258 269 Public safety (1) 267 275 279 308 352 Public works 155 139 167 167 165 Health and welfare(2) 258 286 305 337 357 Culture and recreation 2 1 1 1 1 Economic assistance (3) 161 181 166 173 148 Total General Government 1,084 1,129 1,174 1,244 1,292 Business -type activities: Paramedic service (4) 57 62 63 67 74 Total primary government 1,141 1,191 1,237 1,311 1,366 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. 2009 2010 2011 2012 2013 247 244 251 239 243 365 345 351 357 432 163 161 161 164 179 372 378 368 380 374 1 2 2 2 2 144 78 73 79 89 1,292 1,208 1,206 1,221 1,319 72 69 69 0 0 1,364 1,277 1,275 1,221 1,319 155 COUNTY OF WELD STATE OF COLORADO Operating Indicators by Function/Program Last Ten Years 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) 2004 2005 2006 2007 2008 439,146 98,692 89,099 90.3% 462,877 99,711 46,327 46.5% 466,777 100,924 68,871 68.2% 484,412 88,601 30,203 34.1% 493,544 116,269 106,518 91.6% 1,387 1,543 1,574 1,606 1.122 218 206 215 224 110 402 455 579 628 610 75,276 79,425 92,045 95,524 99,951 2,012 2,082 1.972 2,000 2.571 S132,178 $104,225 $399,473 $100,609 $120,118 Public works: Miles of road graveled 401 401 160 359 312 Snow removal lane miles 33,710 78,435 125,225 222,703 94,685 Grading lane miles 175,910 165,681 164,906 135,779 148,324 Miles of Upgrade -Aggregate Surfaced Roads 10 0 10 34 52 Culverts (new and repaired) 15" and larger 217 217 242 250 252 Tons of asphalt laid 95,634 95,634 70,421 67,389 67,548 Tons of gravel crushed 487,477 487,477 408,409 411,582 231,359 Health and welfare: Social Services Caseload Patient contacts Immunizations Culture and recreation: Visitors -Missile Park County Fair Exhibitors Economic assistance: (3) Headstart clients Migrant Headstart clients Business -type activities: Paramedic Services Patients transported (4) 12,000 15,000 7,500 14,000 11,000 6,900 14,500 30,440 6,360 15,000 11,880 7,165 15.500 11,500 7.000 575 575 586 595 600 2,410 2,220 2,422 2,326 2.335 622 562 562 562 562 175 266 266 266 275 7,331 7,284 8,375 8,210 8.866 Source: Various Weld County Department records. Note: (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 12/31/2009 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. 156 2009 2010 2011 2012 2013 478,202 482,841 541.678 537,483 573,537 112,276 145,692 101.085 162,517 134,936 34,027 80,893 42,937 117,121 66,368 30.3% 55.5% 42.5% 72.1% 49.2% 1,059 1,084 1,795 1,535 970 98 96 73 105 44 538 570 557 573 575 95,383 95,866 93,900 100,230 101,000 1,976 2,143 2,316 2,327 2,451 $86,794 $392,380 $126.194 S322,183 $365,074 205 416 419 482 402 176,786 77,889 89,503 57,474 65,342 152,568 154,602 133.297 157,634 144,036 33 36 41 16 91 233 264 254 222 224 90,664 101,431 86,805 12 5, 668 106,155 282,315 372,709 436.880 270,441 238,395 16,000 15,000 7,000 20,500 11,769 8,159 23,017 8,778 7,333 25,500 12,727 4,873 30,000 15,084 12,543 600 500 650 600 625 2,425 2,383 2,436 2,489 2,468 562 0 0 180 0 0 9,214 9,214 9,470 0 0 0 0 0 0 157 COUNTY OF WELD STATE OF COLORADO Capital Asset Statistics by Function/Program Last Ten Years 2004 2005 2006 2007 2008 Function/Program General government: Building Square Footage Court rooms Information Systems Connections Public safety: Jail capacity (beds) Patrol cars Radios and cell phones Public works: Miles of Roads Paved Unpaved Un-maintained Grader sheds Motor graders Health and welfare: Alternative fuel vehicles Economic assistance: Headstart sites Business -type activities: Paramedic Services Ambulances (1) 684,551 684,551 719,723 725,723 854,081 10 12 16 16 17 1,240 1,292 1,292 1,292 1,320 386 386 386 386 760 42 46 55 55 55 939 1,140 1,229 1,270 1,359 671 681 675 670 684 2,425 2,394 2,387 2,370 2,352 252 512 327 492 490 18 18 18 18 18 30 30 30 30 30 6 4 4 4 4 11 11 11 11 11 10 10 10 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. 2009 2010 2011 2012 2013 860,399 984,052 984,052 984,052 1,003,846 22 22 21 21 22 1,320 1,320 1,320 1,320 2,537 760 760 779 779 779 62 60 60 62 61 1,179 1,220 1,064 1,035 1,055 674 689 696 717 726 2,331 2,307 2,289 2,262 2,241 493 351 354 355 357 18 18 18 18 18 30 30 30 32 34 5 5 5 7 6 0 0 0 0 0 11 12 12 0 0 159 COUNTY OF WELD STATE OF COLORADO Insurance in Force December 31, 2013 Name of Company Safety National Casualty Company Lexington & Hiscox One Beacon Policy Number Policy Period Begins Expires Details of Coverage SP 4047371 12/31/12 12/31/13 Excess Worker's Compensation 20412751 01/01/13 01/01/14 Property damage, automobile liabilities, 791-00-03-55-0002 1/1/2013 1/1/2014 Excess Liability Liability Limits Employer's Liability $1.000,000/Accident. Worker's Compensation Statutory Limits with County retaining first $750,000 each claim. Property: S100,000,000/$500 deductible Crime: $1,000,000/$500 deductible Excess Liability: $100,000,000 per claim! S150,000 CAPP deductible Crime: $1,000,000;5500 deductible crime coverage (employee dishonesty, robbery, forgery, money) Excess $250,000 $10,000,000 liability coverage per occurrence $0 Deductible for liability claims with the exception of: Employment Termination - $10,000 Inverse Condemnation Regulatory Taking - $ 125,000 Herbicide and Pesticide - S2,500 Lawyer's Professional Liabilty - $500 Annual Premium S117,168 S328,588 160 Single Audit WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31; 2013 Program Description Department Of Housing and Urban Development Neighborhood Stabilization Project 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 Paul Coverdell Forensic Sciences Improvement Grant Passed Through the State of Colorado Division Of Criminal Justice: Violence Against Women Formula Grants Congressionally Selected Congressionally Selected Paul Coverdell Forensic Sciences Improvement Grant 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 Unemployment Insurance TAA Case Management WIA Cluster WIA Adult Program WIA Youth Activities WIAADMIN Adult H1B WIA ADMIN Disaster NEG WIA Dislocated Worker Formula Grant Total WIA Cluster 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 FEDERAL Federal CFDA # Expenditure 14.228 711,846 10.561 2,743.320 16.742 16.588 16.738 16.738 16.742 17.207 17.801 17.225 17.245 17.258 17.259 17.268 17.277 17.278 20.205 20.205 20.205 34.296 54.717 205,447 71,998 1,006 367,464 945,426 18,000 963.426 58.153 48,584 731.791 747,804 127.719 50,944 363.424 2,021.682 3,091.845 352.127 2,791.351 1,427.041 4,570.519 WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2013 Program Description 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 Total Immunizations Cluster Center for Disease Control and Prevention Promoting Safe and Stable Families 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 Adult Resources for Care and Help OAA-E National Caregiver Substance Abuse and Mental Health Programs TANF Cluster Temporary Assistance for Needy Families Total TANF Cluster Child Support Enforcement Low -Income Home Energy Assistance CCDF Cluster Child Care and Development Block Grant Child Care and Development Fund Total CCDF Cluster FEDERAL Federal CFDA # Expenditure 93.569 593,352 93.069 221,062 93.116 2,954 93.217 69,748 93.268 91,431 91,431 93.521 7,500 93.556 1,500 93.977 10,353 93.991 15,855 93.994 227,794 93.XXX 255 93.XXX 18,660 93.XXX 24,251 93.XXX 89,007 780,370 93.041 1,805 93.042 7,222 93.043 12,863 93.044 283,119 93.045 357,169 93.053 84,979 725,267 93.048 21,438 93.052 65,725 93.243 370,744 93.558 6,139,823 6,139,823 93.563 2,184,384 93.568 1,123,592 93.575 (265,602) 93.596 2,475,587 2,209,985 WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2013 Program Description Child Welfare Services Program Foster Care Title IV -E Adoption Assistance Social 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 Total Passed Through the State Of Colorado Dept of Health Care Policy and Finance: Total Department of Health and Human Services 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) Total Department of Homeland Security FEDERAL CFDA # 93.645 93.658 93.659 93.667 93.674 93.778 93.XXX 93.XXX 93.778 94.006 97.042 97.036 Federal Expenditure 216,854 3,097,920 665,156 1,694,070 95,361 1,605,790 (2,587) 173,217 20,408,629 773,258 773,258 22,555,609 101,645 95,400 3,226,875 3,322,275 37,464,523 COUNTY OF Weld County STATE OF COLORADO Year Ended December 31, 2013 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, 2013. Note 2 - Sub -Recipient Weld County, Colorado does not have any significant sub -recipients. 164 McGee, Hearne & Paiz, LLP 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 business -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, 2013, 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 25, 2014. 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 those 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 in 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 financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control 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 any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2013-001, that we consider to be a significant deficiency. 165 Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements arc 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 express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. County's Response to Finding The County's response to the finding 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 in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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 communication is not suitable for any other purpose. Cheyenne, Wyoming June 25, 2014 166 � McGee, Hearne & Paiz, LLP Certified Public Accountants and Consultants 314 West 18th Street, Cheyenne, Wyoming 82001-4404 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON 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 U.S. Office of Management and Budget (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 ended December 31, 2013. 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 $2,552,813 in Federal awards which is not included in the County's schedule during the year ended December 31, 2013. Our audit, as described below, did not include the operations of the Weld County [lousing Authority because those financial statements were audited by other auditors. Management'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 responsibility 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 in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major Federal program. However, our audit does not provide a legal determination of the County's compliance. 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, 2013. 167 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 2013-002 through 2013-004. 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 in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control over Compliance Management of the County is responsible for establishing and maintaining effective internal 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 appropriate in the circumstances 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 compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow 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 weakness 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 weaknesses 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 described in the accompanying schedule of findings and questioned costs as item 2013-002, that we consider to be a significant deficiency. The County's response to the internal control over compliance finding 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 in the audit of the financial statements and, accordingly, we express 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 25, 2014 JP oitAP 168 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2013 I. SUMMARY OF INDEPENDENT AUDITOR'S RESULTS A. Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: • Material weaknesses identified? • Significant deficiencies identified that are not considered to be material weaknesses? Yes X Yes X No None reported Noncompliance material to financial statements noted? Yes X B. Federal Awards Internal control over major programs: • Material weaknesses identified? X No • Significant deficiencies identified that are not considered to be material weaknesses? Nonc reported Type of auditor's report issued on compliance for major programs: Unmodified Yes X Yes • Any audit findings disclosed that are required. to be reported in accordance with Section 510(a) of OMB Circular A-133? X Yes Identification of major programs: CFDA Numbers 10.561 16.753 Cluster Cluster 93.558 93.645 93.658 93.667 93.778 97.036 Name of Federal Program or Cluster State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Congressionally Recommended Awards Child Care and Development Fund (CCDF) Cluster Workforce Investment Act (WIA) Cluster Temporary Assistance for Needy Families (TANF) Child Welfare Services — State Grants Foster Care (Title IV -E) Social Services Block Grant (SSBG) Medical Assistance Program (Medicaid; Title XIX) Disaster Grants — Public Assistance (Presidentially Declared Disasters) • Dollar threshold used to distinguish between Type A and Type B programs: $ 1,123,936 • Auditee qualified as low -risk auditee? X Yes No 169 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2013 H. FINANCIAL STATEMENT FINDINGS 2013-001: Audit Adjustments Condition: Adjustments to the County's financial records were proposed and recorded during the audit to properly report the government -wide and fund -level financial statements in accordance with generally accepted accounting principles (GAAP). Criteria: Under professional standards, significant adjustments to the financial statements, including footnote disclosures, is considered a control deficiency. Cause: The misstatements resulting in the adjustments were caused by a number of factors, including communication between departments and human error. Effect: Financial statements that are not correctly stated in accordance with GAAP can be misleading to users. Recommendation: We recommend the Finance Department continue to strive to correct specific issues resulting in the misstatements. Auditee Response: Contact: Barb Connolly, Controller Corrective Action Plan: We will continue to work with all departments to make sure they arc recording payments in the appropriate periods. We will also extend the time that the accounting staff is taking in the year in which expenditures are recorded to ensure that we are reporting appropriately. Anticipated Completion Date: December 2014 111. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS 2013-002: Temporary Assistance for Needy Families (TANF) - Special Tests and Provisions Catalog of Federal Assistance (CF DA) 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 Human Services Condition: During the year ended December 31, 2013, no case files were reviewed as required by the Colorado Work Verification Plan. Criteria: To comply with the Colorado Work Verification Plan, 5% of Colorado Works Basic Cash 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 to be reviewed monthly. 170 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2013 Cause: The work verification review process was suspended by the State of Colorado during the year ended December 31, 2012 and reinstituted beginning January 1, 2013. The County was unaware of the updated work verification review process and requirements. Effect: By not reviewing the files requested by the State of Colorado, the County is out of compliance of the Work Verification Plan. The penalty for failure to comply with the Work Verification Plan may be not less than 1% and not more than 5% of the awarded amount (42 USC 601, 602, 607, and 609). Recommendation: We recommend that the County access the CBMS COGNOS and complete all file reviews requested by the State of Colorado. We also recommend the County implement controls to review the CBMS COGNOS monthly and ensure file reviews are performed timely. Questioned Costs: None. Auditce Response: Contact: John Kruse, Administrator— Assistance Payments Corrective Action Plan: The Department agrees with this finding. During 2013, the case review position had not been filled until late 2013. Many Colorado Works cases were reviewed for accuracy and training purposed through calendar year 2013; however none of them were received formally. The Department is now in the process of formally reviewing Colorado Works cases. Anticipated Completion Date: December 2014 2013-003: Temporary Assistance for Needy Families (TANF) — Special Tests and Provisions Catalog of Federal Assistance (CF DA) 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 Human Services Condition: 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 cleared by the County within the required timeframe of 45 days. Criteria: The County is required to initiate a notice of case action or an entry in the case record that no case action is necessary within 45 days of its receipt of an IEVS 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 did not review open IEVS discrepancy reports contained in participant files within the required 45 day time period. In addition, we noted that the identified IEVS discrepancies were not cleared by the date of the audit. Effect: If the County does not ensure IEVS discrepancy reports are cleared in a timely manner, the County may pay or over compensate a participant who should not be receiving benefits. WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2013 Recommendation: We recommend that the County ensure IEVS discrepancy reports have cleared within 45 days. In addition, we recommend. that any current outstanding IEVS discrepancies outstanding in excess of 45 days be cleared immediately. Questioned Costs: None. Auditee Respon se: Contact: John Kruse, Administrator— Assistance Payments Corrective Action Plan: The Department agrees with this finding. This is largely due to the high caseload size due to turnover and caseload growth. The Department will continue to identify ways to be more efficient and streamlined in order to manage our caseloads. In addition, we will continue to provide IEVS training to staff The Department is looking into establishing a team that would specifically work reports, such as IEVS reports to be timely. Anticipated Completion Date: December 2014 2013-004: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program - Eligibility Catalog of Federal Assistance (CF DA) Number and Title: #10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Federal Agency Name: U.S. Department of Agriculture Pass -Through Entity Name (if applicable): Colorado Department of human Services Condition: Of the 25 case files selected for testing, we noted one file 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 and 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 participant's eligibility from time of initial application until date of selected payment or to verify the participant 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 participants 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 eligibility determination as well as going forward to ensure client records are available for verification and other purposes. WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Year Ended December 31, 2013 Questioned Costs: None. Auditee Response: Contact: John Kruse, Administrator — Assistance Payments Corrective Action Plan: The Department agrees with the finding that a Food Stamps case did not contain verification of an applicant's income. This income was documented on the application, but the Department neglected to obtain documentation and retain it in the case file. The Department will provide ongoing training to staff to ensure we are obtaining and retaining the required income verification in the case file. Anticipated Completion Date: December 2014 WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR FEDERAL AUDIT FINDINGS For the Year Ended December 31, 2013 Findings Status 2012-01: Temporary Assistance for Needy Families (TANF) Cluster — Special Tests and Provisions Catalog of Federal Assistance (CF DA) Number and Title: #93.558, #93.714 and #93.716, Temporary Assistance for Needy Families (TANF) Cluster F ederal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable We selected eight case files for testing to ensure proper review was performedby the County in compliance with the State's Work Verification Plan. Of the eight case files selected for testing, we noted. the County did not complete seven of the file reviews within the two -month time period required by the State of Colorado. Due to continued staffing shortages, we haven't yet fully implemented all of the safeguards that would prevent reoccurrence of these situations. However, we have made significant progress toward resolving this issue, and will continue our attempts to achieve full staffing and optimal implementation. See Finding 2013-002 2012-02: Temporary Assistance for Needy Families (TANF) Cluster — Special Tests and Provisions Catalog of Federal Assistance (CF DA) Number and Title: #93.558, #93.714 and #93.716, Temporary Assistance for Needy Families (TANF) Cluster F ederal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Of the 40 participants selected for testing, we noted seven instances of participant files that contained Income Eligibility and Verification System (IEVS) discrepancy reports that were not cleared by the County within the required timeframe of 45 days. Due to continued staffing shortages, we haven't yet fully implemented all of the safeguards that would prevent reoccurrence of these situations. However, we have made significant progress toward resolving this issue, and will continue our attempts to achieve full staffing and optimal implementation. See Finding 2013-003 174 WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR FEDERAL AUDIT FINDINGS (Continued) For the Year Ended December 31, 2013 2012-03: Temporary Assistance for Needy Families ('I'ANF) Cluster — Eligibility Catalog of Federal Assistance (CF DA) Number and Title: #93.558, #93.714 and #93.716, Temporary Assistance for Needy Families (TANF) 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 Award Number/Name: Not Applicable Of the 40 participants selected for testing, we noted two instances of participant files that did not contain adequate documentation supporting the eligibility determination. Due to continued staffing shortages, we haven't yet fully implemented all of the safeguards that would prevent reoccurrence of these situations. However, we have made significant progress toward resolving this issue, and will continue our attempts to achieve full staffing and optimal implementation. No instances of non-compliance were identified by the auditor in the current year. 2012-04: Medical Assistance Program — Eligibility Catalog of Federal Assistance (CF DA) Number and Title: #93.778, Medical Assistance Program Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Of the 60 participant files selected for testing, we noted one file that did not contain adequate documentation supporting the eligibility determination. Due to continued staffing shortages, we haven't yet fully implemented all of the safeguards that would prevent reoccurrence of these situations. However, we have made significant progress toward resolving this issue, and will continue our attempts to achieve full staffing and optimal implementation. No instances of non-compliance were identified by the auditor in the current year. 2012-05: Medical Assistance Program — Eligibility Catalog of Federal Assistance (CF DA) Number and Title: #93.778, Medical Assistance Program Federal Agency Name: U.S. Department of Health and Human Services Pass -Through Entity Name (if applicable): Colorado Department of Health and Human Services Award Number/Name: Not Applicable Of the 60 participant files selected for testing, we noted two files in which the information recorded within the Colorado Benefits Management System ("CBMS") did not match documentation contained in the participants' hard copy file. We noted that in both cases the social security number included on the application was not the social security number included in the CBMS system. Due to continued staffmg shortages, we haven't yet fully implemented all of the safeguards that would prevent reoccurrence of these situations. However, we have made significant progress towardresolving this issue, andwill continue our attempts to achieve full staffing and optimal implementation. No instances of non-compliance were identified by the auditor in the current year. 175 Hello