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CAFR 2015 COMPREHENSIVE ANNUAL FINANCIAL REPORT* YEAR ENDED DECEMBER 31 Jr — i s I I 4 y! .1L ALAI" WELD TY �--STATE OF COLORADO PREPARED BY THE DEPARTMENTS OF ACCOUNTING AND FINANCE LEADING WITH RESPONSIVE, INNOVATIVE & COST EFFECTIVE SERVICES. 2016-2356 `j.. .25.0204, W2coacQ mitorAtan COLORADO TABLE OF CONTENTS INTRODUCTORY SECTION Table of Contents, i Letter Of Transmittal1 Government Finance Officers Association Certificate of Achievment for Excellence in Financial Reporting10 Organizational Chart 11 Principal County Officials12 FINANCIAL SECTION Independent Auditors' Report 13 Management's Discussion and Analysis 15 Basic Financial Statements Government -Wide Financial Statements: Statement of Net Position.23 Statement of Activities 24 Governmental Fund Financial Statements: Balance Sheet26 Reconciliation of Total Governmental Fund Balances to the Statement of Net Position 28 Statement of Revenues, Expenditures and Changes in Fund Balance 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities32 Proprietary Fund Financial Statements: Statement of Net Position - Proprietary Funds, 33 Statement of Revenue, Expenses and Changes in Net Position - Proprietary Funds 34 Statement of Cash Flows - Proprietary Funds 35 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position 36 Statement of Changes in Fiduciary Net Position 37 Notes to the Financial Statements. 39 Required Supplementary Information Other Than MD&A: Required Supplementary Information Other Than MD&A: Required Supplementary Information Schedule of Changes in Net Pension Liability and Related Ratios 79 Schedule of Employer Contributions.. go Schedule of the County's Proportionate Share Of Net Pension Liability - PERA 81 Schedule of Employer Contributions - PERA 82 Other Post Employment Benefitsg3 Modified Approach for Infrastructure Assets84 i Schedules of Revenues, Expenditures and Changes in Fund Balances - Actual and Budget General Fund and Major Special Revenue Funds: General Fund 85 Public Works Fund 90 Social Services Fund 92 Human Services Fund 94 Contingent Fund 96 Supplemental Information: Combining Statement of Non -major Governmental Funds: Explanation of Funds 97 Combining Balance Sheet 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balance104 Schedules of Revenues, Expenditures and Changes in Fund Balances -Actual and Budget Capital Expenditures Fund 106 Non -major Governmental Funds: Special Revenue Funds: Conservation Trust Fund 107 Public Health Fund 108 Solid Waste Fund 109 Bebee Draw Fund 110 Pioneer Community Law Enforcement Fund 111 South West Law Enforcement Fund 112 Component Units: Housing Authority 113 E-911 Authority Fund114 Local Highway Finance Report 116 Combining Statements of internal Service Funds: Combining Statement of Net Position - Internal Service Funds 118 Combining Statement of Revenues, Expenditures and Changes in Net Position - Internal Service Funds120 Combining Statement of Cash Flows - Internal Service Funds 122 Combining Statement of Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities - Fiduciary Funds 124 ii Schedule of Revenues, Expenses and Changes in Net Position -Actual and Budget Enterprise Fund and Internal Service Funds: Enterprise Fund: Northern Colorado Regional Forensic Laboratory. 125 Internal Service Funds: Motor Vehicle 126 Health Insurance Fund 127 Insurance Fund 128 Phone Service Fund 129 STATISTICAL SECTION Net Position by Component 132 Changes in Net Position 134 Fund Balances of Governmental Funds, 136 Changes in Fund Balances, Governmental Funds 138 Assessed and Estimated Actual Value of Property 140 Property Tax Rates - Direct and Overlapping Governments 142 Principle Tax Payers...143 Property Taxes Levies and Collections 144 Direct and Overlapping Governmental Activities Debt 145 Legal Debt Margin Information 146 Private Purpose Revenue Bonds148 Demographic and Economic Statistics 149 Principal Employers 150 Full -Time Equivalent Employees by Function/Program 152 Operating Indicators by Function/Program 154 Capital Asset by Function/Program 156 Insurance in Force 158 SINGLE AUDIT Schedule of Expenditures of Federal Awards159 Notes to the Schedule of Federal Expenditures161 Report On Internal Control Over Financial Reporting and on Complianceand other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 162 Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance 164 Summary Schedule of Prior Federal Audit Findings 167 111 iv June 30, 2015 DEPARTMENT OF FINANCE AND ADMINISTRATION PHONE (970) 356-4000; EXT.4218 FAX: (970) 352-0242 P.O. BOX 758 GREELEY, COLORADO 80632 Honorable Board of Commissioners County of Weld 1150 O 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, 2015, 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, 2015 financial statements, Weld County has elected to continue a significant change in government financial reporting. The purpose of these changes, which were developed by the Governmental Accounting Standards Board (GASB), is to provide better and more complete information to the users of governmental financial statements. In addition to changes to the basic financial statements, the statements are now accompanied by an introduction, overview, and analysis, referred to as "Management's Discussion and Analysis" (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found in the Financial Section immediately following the independent auditor's report. The County provides the full range of county services contemplated by statute or charter. These include general government functions, public protection and safety, health, social services, human resource services, public improvements, road and bridge operations, planning and zoning, and general administrative services. 1 Honorable Board of Commissioners This report includes all activities for which the Board of County Commissioners is accountable to the citizens of Weld County, financially, or by State Statute or the Weld County Home Rule Charter. All applicable funds, departments, and offices are included in these financial statements as part of the "primary government" of Weld County. In addition, there are several legally separate entities that have significant operational or financial relationships with the County. These include the Weld County Housing Authority, Weld County Retirement Plan, Beebe Draw Law Enforcement Authority, Pioneer Community Law Enforcement Authority, Southwest Weld Law Enforcement authority, Weld County Finance Corporation, and E-911 Authority. These entities are also included in the County's financial statements. INDEPENDENT AUDIT Colorado law requires that the County's financial statements be audited by an independent certified public accountant or firm of certified public accountants licensed to practice in the State of Colorado. The county's financial statements have been audited by Anderson & Whitney, 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 unmodified opinion that the County's financial statements for the year ended December 31, 2015, 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 the Title 2 U.S. Code of Federal Regulations part 200. The "Single Audit" is designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, especially as they relate to the administration of federal awards. Single audit schedules and the auditor's reports are available in the "Single Audit" section of the document. PROFILE OF WELD COUNTY Location and demographics. Weld County is located along Colorado's Front Range in the northern part of the state. Weld County covers an area of 3,999 square miles in north central Colorado. It is bordered on the north by Wyoming and Nebraska and on the south by the Denver metropolitan area. The third largest county in Colorado, Weld County has an area greater than that of Rhode Island, Delaware and the District of Columbia combined. 2 Honorable Board of Commissioners 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 2015 was approximately 286,500. COUNTY GOVERNMENT County Services. Weld County provides the full range of services contemplated by State Statute and the Weld County Home Rule Charter. Services include: • Judicial and public safety - - consisting of the Sheriff, District Attorney, operation and maintenance of the detention center, regional communications center, and building inspection. • Health, employment, and social services. • Planning and zoning. • Construction, reconstruction and maintenance of streets, highways, and bridges. • Parks and recreation. • Property valuation, tax collection and distribution, and vehicle licensing. • General administrative services. County Operating Structure. Weld County became Colorado's first Home Rule County in 1976. The County is governed by a five -member Board of County Commissioners. Three Commissioners are elected by districts of relatively equal population and two Commissioners are elected at large. They serve staggered four-year terms and function as the County's policymaking body. Each Commissioner coordinates one of five functions of the County. The County is also served by four other elected officials: assessor, clerk and recorder, district attorney, and sheriff. Weld County also has a five -member, non-partisan, elected body that is charged to review all aspects of County government and to make periodic written reports to the public. The Commissioners appoint department heads to be responsible for the various day-to-day operations. Honorable Board of Commissioners 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 2015, 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 2015: Assessed value increased 28% or $1.955 billion primarily from oil and gas production The county's mill levy was reduced by over one mill to 15.800 mills Completed the design for the construction of 20 miles of the five -lane WCR 49 south corridor from US 34 to 1-76 as part of a design/build contract Completed road and bridge mitigation projects resulting from the September 2013 flooding Continued to fund a Haul Route Program (HARP) to improve county roads impacted by the energy industry due to new oil and gas drilling exploration Continued implementation of the Strategic Investment Plan for the Future of Weld County Completed a major capital upgrade of the information technology (IT) infrastructure in the county as part of the 2015-2019 Five Year IT Capital Plan Information Technology did a major PC and computer monitor refresh along with a major Microsoft upgrade Funded the oil and gas revenue fluctuation reserve in the Contingency Fund Operated a Restorative Justice Program in the District Attorney's Office for juvenile offenders Added two Pretrial Specialists to accommodate HB 13-1236 changes to jail bonding criteria Created an Oil and Gas Liaison/Coordinator position to deal with oil and gas issues r Implemented a storm water management program for MS4 compliance Funded current and past administrative costs of the Weld County Retirement Plan Continued efforts to control health care costs for county employees and their dependents 4 Honorable Board of Commissioners Accommodated the impacts of the Affordable Care Act on Medicaid eligibility applicants Implemented a number of cost containment and strategies to mitigate growing cost of Human Services programs r Accommodated the impact of HB14-1317 on the delivery of day care FACTORS AFFECTING FINANCIAL CONDITION Economic Conditions and Outlook. The economies of both Weld County and Colorado are strong. Low oil prices are expected to slow the pace of Colorado's expansion in 2016. Nationwide, low oil prices will be a net positive outside of the oil producing states, boosting growth. The expansion and inflationary pressure will be moderated in 2016 by tightening monetary policy. The biggest risk to expectations for Colorado's and Weld County's economies is the trajectory of oil prices and its impact on employment and income growth. Oil prices decreased precipitously in the second half of 2014, from more than $100 per barrel in June to around $50-60 per barrel in 2015. The impact of the price drop on future drilling activity in Colorado will depend on the length of time that prices remain at or below current levels. It is forecast that oil prices will begin to rise gradually through 2016, and that oil production in Weld County and the broader Niobrara formation will remain strong, though at a somewhat reduced level, throughout 2016. The biggest impact on the Colorado economy will come in the form of reduced investment and capital expenditures by the oil industry. The Denver Post has reported that nine oil companies announced, in March, a combined total of $2 billion in reduced capital expenditures within Colorado. Other sectors of the economy, including the financial and banking sectors, construction, manufacturing, professional and business services, and health care have strong momentum, with low debt, strong earnings, and growing consumer demand. Cutbacks in the oil industry, therefore, are expected to be a moderating influence in employment, wages, and income gains in the Denver metropolitan area and the northern Front Range. History shows that economists and financial markets are dismally bad at predicting even the direction of oil prices. Forecasts published by prominent economists expect a wide variation in prices for the rest of the year, with some predicting them to fall to less than $30, and others expecting them to steadily recover to $80 by the end of the year. Those predicting that oil prices will continue to fall point to a continuously building oversupply of oil, evidenced by the surge in the nation's stock inventories of crude oil. Production is likely to have fallen off as the number of oil rigs operating in both Colorado and the nation has dropped. Those predicting steady gains in oil prices point to a rebalancing of the market, as a slowly strengthening global economy increases demand, while reductions in global production reduce supply. Weld County continues to boast one of the strongest regional economies in the state. The employment level continues to increase and the unemployment rate, already among the lowest in the state, continues to fall. Growth in retail sales is accelerating while the growth in residential and nonresidential construction continues to be strong. A potential downside is the recent drop in oil prices, which appears to have slowed the pace of oil development in the region. 5 Honorable Board of Commissioners The regional labor market continues to be the strongest in the state, with employment growing nearly five percent in Weld County on a year -over -year basis. The healthy rate of job growth kept the regional unemployment rate among the lowest in the state with the October unemployment rate of 3.2% in Weld County. Regional construction activity continues to grow at a healthy rate. In the last year residential permits increased 18.5 percent in Weld County. There were 238 nonresidential construction projects started last year, an increase of 53.5 percent on a year -over - year basis. During this same period, the total value and square footage of projects increased 38.4 percent. The growth rate for retail sales in Weld County the last three years outpaced both the state and the nation as a whole. In summary, the Weld County economy, like the Colorado economy, is expected to grow at rates at or above its historical trend through 2016. The labor market continues to improve with more jobs and fewer people looking for work. These labor market improvements have begun to put upward pressure on wages, giving households more money to save and spend. Healthier households will boost consumer spending and business activity, fueling more growth in earnings and investments. Because of momentum in the economy, the Federal Reserve is expected to begin to slowly raise short-term interest rates as we approach 2016. Economic growth will be moderated by tightening monetary policy and a weak global economy. Although low oil prices are expected to be a boost for the economy nationwide, the boost will be offset by lower production and income in the oil industry. Low oil prices are expected to moderate the pace of Colorado's expansion in 2016, primarily in the Denver Metropolitan area and the northern Front Range, where Weld County is the center of the energy development activity. LONG-TERM FINANCIAL PLANNING There are a number of future issues and concerns that will be impacting Weld County's budget in 2016 and subsequent fiscal years. The continued impact of oil and gas development in the county touches on many aspects of Weld County currently, and in planning for the future. The energy development presents both challenges and opportunities for Weld County government. As has been the case for the last four to five years, growth and development activity directly, or indirectly, related to oil and gas exploration seems to be the main economic driver in the majority of positive economic activities in Weld County. The County has seen several compressor stations, injection wells, new pipelines, and other oil and gas support and service industries seeking permits. Given the commitments of the large oil and gas companies in Weld County, the County seems primed to see considerable long-term investment and development in the oil and gas arena. Although the future of energy development in Weld County appears bright, it is not without risks. Oil and gas production in Colorado has risks associated with the potential of more government regulations and voter initiatives trying to restrict or limit fracking in Colorado communities. These regulatory risks, if implemented, could dramatically impact future oil and gas development in Colorado. The volatility of the oil and gas assessed values continues to be a major impact to the County's budget planning the last five years. For the 2016 budget, the growth in the county's assessed value from oil and gas values exceeds 25%. Oil and gas assessed valuation are close to two-thirds of the county's total assessed valuation. Since November, 2014, due to the oversupply of oil worldwide the price of oil has dropped from over $100 a barrel to the price range of $40-50 per barrel. Because of the volatility of production levels and price fluctuations of the oil and gas values, the County must continue to prudently manage the increased property tax base created by the energy development in 2016 and be prepared for a significant drop in the assessed valuation for 2017 the county will be facing. Any 2016 budget decision needs to be made by 6 Honorable Board of Commissioners keeping in mind the future drop in property tax revenues in 2017. The drop in assessed valuation for the 2017 budget could lower the Weld County assessed valuation 20-25% below the 2015 budget level for property tax. 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. This strategy positions Weld County well financially to deal with the future drop in the oil and gas assessed valuation and lower property tax level to be faced in 2017. Based upon industry projections hopefully after the 2017 budget year the price of oil and gas will recover and stabilize at price levels that will be somewhere between the low of $40 a barrel and the high of over a $100 a barrel. The financial planning done by Weld County the last four years has funded the unfunded liability of the retirement plan, a fluctuation contingency reserve of $30 million and reserves in the Public Works Fund and Capital Fund. The $30 million contingency fund will provide the financial flexibility to adjust to the volatile property tax revenue patterns in the next two to three years without having to make significant reductions to basic operational spending, which requires just under $115 million in property tax revenue to maintain the current spending levels. The capital reserve will leave the County on track to be able to construct the $42 million jail expansion in 2018-2019. The fund balance in the Public Works Fund should be adequate to accomplish the major capital improvements to the CR 49/47 Corridor, south from Highway 34 to 1-76, and north from CR 60.5 (SH 263) to SH 392 over the next three years, requiring over $16.5 million in property tax per year to fund the road improvements. To accomplish the project, a funding level of $25 million per year for five years has been required. In 2016, to be positioned in 2017, the budget process provided a comprehensive method of addressing issues faced by the County. Weld County managers must continue to find ways to reduce costs, increase program productivity, find new revenue sources, and raise revenues without increasing taxes beyond the TABOR and Home Rule Charter limits. Weld County government's trend of being more creative and innovative to make better use of resources -- human, financial, and technological -- must continue. It is only through improved practices and approaches that services are maintained and public confidence in government is enhanced. RELEVANT FINANCIAL POLICIES As stated earlier, as Weld County begins 2016 the County is in excellent financial condition with no debt, no sales tax, one of the lowest mill levies among all Colorado counties, a significant cash reserve, and a fully funded pension plan. The major factors impacting the 2016 budget continue to be dominated by the oil and gas development in Weld County, state and federal budget issues, service restructuring in Weld County government, and the execution of the Strategic Investment Plan for the Future of Weld County. As has been the case for the last four to five years, growth and development activity directly, or indirectly, related to oil and gas exploration seems to be the main economic driver in the majority 7 Honorable Board of Commissioners of positive economic activities in Weld County. The County has seen several compressor stations, injection wells, new pipelines, and other oil and gas support and service industries seeking permits. Given the commitments of the large oil and gas companies in Weld County, the County seems primed to see considerable long-term investment and development in the oil and gas arena. The volatility of the oil and gas assessed values continues to be a major impact to the County's budget planning the last five years. For the 2016 budget, the growth in the County's assessed value from oil and gas values exceeds 27%. Oil and gas assessed valuation are close to two-thirds of the County's total assessed valuation. Since November, 2014, due to the oversupply of oil worldwide the price of oil has dropped from over $100 a barrel to the price range of $40-50 per barrel. Because of the volatility of production levels and price fluctuations of the oil and gas values, the County must continue to prudently manage the increased property tax base created by the energy development in 2016, and be prepared for the significant drop in the assessed valuation for 2017 that the County will be facing. Any 2016 budget decision needs to be made by keeping in mind the future drop in property tax revenues in 2017. The drop in assessed valuation for the 2017 budget could lower the Weld County assessed valuation 20-25% below the 2015 budget level for property tax. In anticipation of the significant drop in the 2017 assessed valuation, there is approximately $63 million in one-time expenses in the 2016 budget with $23 million going into the contingency reserve, $5 million for engineering costs for the Weld Parkway, $12.36 million in property tax incentive credits, $15 million for property tax credits for the Weld County Bright Futures Program, $8.25 million in capital reserve. This amounts to over a third of the County's 2016 property tax revenues. Thus, allowing for nearly a 50% drop in oil and gas assessed valuation in 2017 without adversely impacting the core county program budgets. A significant long term project will be the capital improvements to the CR 49/47 Corridor, south from Highway 34 to 1-76, and north from CR 60.5 (SH 263) to SH 392, over the next three years, requiring over $40 million per year to fund the road improvements in 2016 and 2017, and $25 million in 2018. To accomplish the project, added property tax resources will have to be included in the Public Works Fund for the next three years. On May 20, 2014, the Board approved the design/build option for the CR 47/49 Corridor at a total cost of $125 million. The first section of the project from Highway 34 to CR 60.5 was completed in November, 2015. A design/build contract for the section from Highway 34 to 1-76 was awarded in August, 2015, with construction to be completed in 2017. Savings have been realized by doing a design/build. The schedule is as follows: CIP 2014 2015 2016 2017' 2019 CR 49 South US 34 to 1-76 (20 miles) Design/ROW Design/ROW Construction Construction Optional Bid CR 47 North CR 60.5 - SH 392 (3.5 miles) Design/ROW Construction Construction The project will be able to be funded within the resources of the Public Works Fund over the period of 2013-2017. The property tax for the Public Works Fund has been increased $10 million the last three years from $6.5 million in 2013, to $16.5 million in 2016. No debt has been incurred, 8 Honorable Board of Commissioners nor have funds had to be advanced from other county funds to accomplish this project. Finally, for the fourth year the Strategic Investment Plan for the Future of Weld County recommendations are incorporated into the 2016 Budget. The plan calls for developing a long-term strategy of investment in the County's infrastructure, technology and innovation, staff training and development, economic development for diversification of the local economy, and establishing a fluctuation reserve to deal with the volatility of the peaks and valleys in energy prices and production. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the County for its Comprehensive Annual Financial Report for the fiscal year ended December 31, 2014. This was the thirty-second year that the County has received this prestigious award. In order to be awarded a Certificate of Achievement, the County published an easily readable and efficiently organized Comprehensive Annual Financial Report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement 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 2015 annual appropriated budget for over thirty consecutive years. In order to qualify for the Distinguished Budget Presentation Award, the County's budget document was judged to be proficient in several categories including policy documentation, financial planning, and organization. Financial reports are valuable in that they provide a permanent historical record of a governmental agency's operation to the management and the general public. It is our belief that this is a comprehensive report of the 2015 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, 2015. 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, yieW44/M �7 Donald D. Warden, Director of Finance and Administration 9 G�9 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to County of Weld Colorado For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2014 deAgere, Executive Director/CEO 10 WELD COUNTY HOME RULE GOVERNMENT County Citizens Assessor County Council Board of County Commissioners *riff Corrections, Law Enforcement, Animal Control, Forensic Lab, Task Force, Code Enforcement FlClerk and , Recorder ordirig. Motor Vehicle, Elections ic County Attorney Department of Finance and Administration Commissioner Coordinator Accounting Budget Capital Projects Contract Administration Grant Administration Finance Division Human Resources Printing and Supply Risk Management Special Projects Treasurer's Office Clerk to the Board Housing Authority Department of Public Health and Environment Commissioner Coordinator Health Administration Environmental Health Public Health Services Health Communication, Education and Planning Board of Public Health General Services Coroner Justice Services Purchasing Communications Public Safety IT Information Services GIS and Mapping Phone Services Department of Public Works Commissioner Coordinator rEngineering Road and Bridge Buildings and Grounds Veterans Services Office of Emergency Management Department of Planning Services Commissioner Coordinator Planning and Zoning Building Inspection Board of Adjustment International Building Code Planning Commission Utility Board County Extension Office Fair Board Red = Elected Positions Department of Human Services Commissioner Coordinator a Human Services Social Services AAA Child Support Assistance Payments Child/Adult Protection Employment Services 11 COUNTY OF WELD STATE OF COLORADO PRINCIPAL COUNTY OFFICIALS December 31, 2015 Board of County Commissioners Barbara Kirkmeyer Sean Conway Mike Freeman Julie Cozad Steve Moreno County Clerk and Recorder Carly Koppes County Assessor Christopher M. Woodruff County Sheriff Steve Reams Director of Finance & Administration Don Warden Controller Barbara Connolly Treasurer John R. Lefebvre, Jr. 12 FINANCIAL SECTION ANdERsorj EZ1WhITNEy ■ ■ ■ ■ Independent Auditors' Report Board of County Commissioners Weld County, Colorado Report on the Financial Statements A Professional Corporation of Certified Public Accountants 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, as of and for the year ended December 31, 2015 and the related notes to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the accounting principles generally accepted in the United States; this includes the design, implementation, and maintenance of the internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of Weld County Housing Authority (the Authority), whose assets totaled S2,375,288 and whose revenues totaled $3,568,542 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluation of the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate discretely presented component units and remaining fund information of Weld County, Colorado, as of December 31, 2015, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States. 5801 West 11th Street . Suite 300 (970) 352-7990 Greeley, Colorado 80634-4813 www.awhitney.com 13 ■ Board of County Commissioners Weld County, Colorado Page 2 Emphasis of Matter As discussed in notes 1 and 16 to the financial statements, the County adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting far Pensions and GASB Statement No. 71, Pension Transition, fbr Contributions Made Subsequent to the Measurement Date, which has resulted in a restatement of the net position as of January 1, 2015. Our opinions are not modified with respect to this matter. Other Matters Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The combining and individual nonmajor fiend financial statements and schedules, the Local Government Highway Report, and the schedule of expenditures of federal awards listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements of Weld County, Colorado. Such information is the responsibility of the management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States by us and other auditors. En our opinion, based on our audit and the report of the other auditors, the information is fairly stated in all material respects in relation to the basis 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 express no opinion on them. Accounting principles generally accepted in the United States require that management discussion and analysis, supplementary pension information, budgetary comparison schedules and information on the modified approach for reporting infrastructure he 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, 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 the 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. Other Reporting Required By Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 29, 2016 on our consideration of Weld County, Colorado'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 Weld County, Colorado's internal control over financial reporting and compliance. June 29, 2016 14 Management Discussion and Analysis This section of the report provides readers with a narrative overview and analysis of the financial activities of Weld County for the fiscal year ended December 31, 2015. We encourage readers to consider the information presented here in conjunction with the letter of transmittal and basic financial statements to enhance their understanding of the County's financial performance. FINANCIAL HIGHLIGHTS • Weld County's assets exceeded liabilities and deferred inflows of resources by $495.2 million at the end of 2015. Of this amount, $53.4 million may be used to meet the government's ongoing obligations to citizens and creditors. The remaining $441.8 million is invested in capital assets or restricted by law. • The County's General Fund balance was $26.0 million as of December 31, 2015. Of this amount, $0.9 million for non - spendable assets, $8.4 million is restricted; $2.1 million committed for economic development; $0.7 million for encumbrances. The remaining $13.9 is available to meet the ongoing obligation to citizens and creditors. • The 2015 General Fund balance of $26.0 is 18.8% of 2015 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 2016. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County's basic financial statements. The basic financial statements contain three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. In addition to the basic statements, this report also contains other supplementary information including combining statements for non -major funds, a statistical section, and information regarding federal grant programs. Government -wide Financial Statements. The government -wide. financial statements are designed to provide readers with a broad overview of the County's finances in a manner similar to a private sector business. The statement of net position presents information on all of the County's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the remaining difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the County's financial position is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash, flows. Thus, revenues and expenses are reported in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). Both of the government -wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). Weld County's governmental activities include general government, public safety, streets and highways, health and welfare, auxiliary, culture and recreation, and economic assistance. The County has one business type activity — operation of the regional forensic laboratory. The government -wide financial statements include not only Weld County itself (known as the primary government), but also legally separate entities which have a significant operational or financial relationship with the County. These entities, known as blended component units, include local improvement districts, Finance Corporation, Weld County Retirement Plan, Pioneer Law Enforcement Authority, Southwest Weld Law Enforcement Authority and Beebe Draw Law Enforcement Authority. Discretely presented component units are Housing Authority and F-91 1 Emergency. More information on the functions of these entities can be found in Note 1 to the financial statements. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Weld County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of Weld County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds arc used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. 15 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 field balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Weld County maintains eleven individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in find balances for the General Fund, Public Works Fund, Social Services Fund, Human Services Fund, Capital Expenditures, and Contingent Fund, all of which are considered to be major funds. Data from the other five funds are combined into a single, aggregated presentation. Individual fund data for each of these 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 of this report. 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 finds to account for its fleet maintenance, phone services, Weld Finance Corporation, and self-insurance activities. Because these services predominantly benefit governmental rather than business -type functions, they have been mostly included within governmental activities in the government -wide financial statements. Proprietary finds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary field financial statements provide separate information for the Northern Colorado Regional Forensic Laboratory Fund, an enterprise fund of the County. The remaining proprietary funds, all of which are internal service funds, are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for each of these non - major funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 33 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 36 through 37 of this report. Budgetary Comparisons. Weld County adopts an annual appropriated budget for all of its finds. A budgetary comparison statement has been provided for all major funds on pages 85 to 96 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 frill understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages of this report. Other information. The combining statements referred to earlier in connection with non -major governmental finds and internal service funds are presented following the notes to the financial statements and can be found on pages 102 through 112 and 118 through 129 respectively. 16 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, 2015, assets and deferred outflows exceeded liabilities and deferred inflows by $495.2 million. The following table provides a summary of the County's governmental and business -type net assets for 2014 and 2015. Table 1 Net Position (in Millions) Governmental Business -type Activities Activities Total 2014 2015 Assets Current and other assets $ 350.21 $ 373.73 $ Capital assets 297.89 340.94 _ Total Assets 648.10 714.67 Deferred Outflows Pension Plans 0.00 60.63 _ Total Deferred Outflows $ 0.00 $ 60.63 $ - $ Liabilities Current and other liabilities $ 21.07 $ 36.29 $ - $ Long-term liabilities 8.10 58.96 _ Total liabilities $ 29.17 $ 95.25 _ Deferred Inflows Property Taxes $ 144.52 $ 184.66 $ Pension Plans - 0.19 _ Total Deferred Inflows $ 144.52 $ 184.8.5 - $ Net Position Invested in capital assets $ 297.89 $ 340.94 $ Restricted 110.32 100.87 Unrestricted 66.20 53.39 Total net position $ 474.41 $ 495.20 $ 2014 2015 2014 2015 $ (0.01) $ 350.21 $ 373.72 - 297.89 340.94 (0.01) 648.10 714.66 0.00 60.63 - $ 0.00 $ 60.63 - $ 21.07 $ 36.29 8.10 58.96 29.17 95.25 - $ - $ 144.52 $ 184.66 0.19 - $ 144.52 $ 184.85 - $ - $ 297.89 $ 340.94 - - 110.32 100.87 - (0.01) 66.20 53.38 - $ (0.01) $ 474.41 $ 495.19 A portion of Weld County's net position (10.8%) represents unrestricted net position of S53.38 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 (68.9%) 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 $100.87 million of the County's net position (20.4%) represents resources that are subject to external restrictions on how they may be used. Included in this category is the TABOR emergency reserve of $7.00 million, $4.73 million in reserves for insurance claims, $7.49 million for health, economic and social assistance programs, S79.77 million for road and bridge maintenance and $1.88 million for other purposes. At the end of 2015 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 $20.78 million in 2015, including a dcrease to the beginning net position of $44.59 as a result of the implementation of GASB 68. The table indicates the changes in net position as a result of activities for the governmental and business -type activities in 2014 and 2015. 17 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 Forensic Crime Lab Total expenses Increase (decrease) in net position before Transfers Transfers Net Position Beginning Net Position Ending Governmental Activities 2014 2015 Business -type Activities 2014 2015 $ 59.30 $ 66.01 $ 0.00 $ 30.44 32.69 0.15 Total 2014 2015 0.00 $ 59.30 $ 66.01 0.14 30.59 32.83 115.69 127.45 0.00 0.00 115.69 127.45 14.38 14.72 0.00 0.00 14.38 14.72 37.78 16.74 0.00 0.00 37.78 16.74 $ 257.59 $ 257.61 $ 0.15 $ 0.14 $ 257.74 $ 257.75 $ 46.77 $ 37.50 $ 54.03 58.17 42.89 43.93 1.79 1.61 39.09 42.85 9.41 8.17 0.00 0.00 193.98 192.23 0.00 $ 0.00 0.00 0.00 0.00 0.00 0.15 0.15 0.00 $ 46.77 $ 37.50 0.00 54.03 58.17 0.00 42.89 43.93 0.00 1.79 1.61 0.00 39.09 42.85 0.00 9.41 8.17 0.15 0.15 0.15 0.15 194.13 192.38 63.61 65.38 0.00 (0.01) 63.61 65.37 0.00 0.00 0.00 0.00 0.00 0.00 410.80 429.82 0.00 0.00 410.80 429.82 $ 474.41 $ 495.20 $ 0.00 $ (0.01) $ 474.41 $ 495.19 Governmental Activities. Governmental activities increased Weld County's net position by $65.38 million in 2015. Key elements of this increase are as follows: • Total revenues were up 50.02 million, 0.01% from the prior year, with an increase in property taxes (S11.76 million) charges for service ($6.71 million) operating grants and contributions ($2.25 million) and decrease in other revenues ($21.04 million). • Expenses totaled $192.23 million. This represents a 0.90% decrease, with decreases for general government (S9.27 million), economic assistance (S1.24 million) and culture and recreation ($0.18 million). Expenses for health and welfare (S3.76 million), public safety ($4.14 mullion) and streets and highways ($1.04 million) had increases in 2015. Business -Type Activities. The County's only business -type activity, Northern Colorado Regional Forensic Laboratory, net assets did not change as a result of 2015 activities. The crime lab began operations in August of 2013 and all operating expenditures were reimbursed by grant funds. 18 FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS As noted earlier, Weld County uses fiend accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds Overview. The focus of County governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of 2015, the combined ending fund balance of County governmental funds was $133.97 million. Of this amount the approximately $2.15 million represents an investment in non -spendable items (51.28 million inventory, and $0.87 million in prepaid expenses). Another $91.45 million of fund balance is restricted use for emergencies (S7.00 million) public works ($69.34 million) health, welfare and economic assistance ($13.24 million), and other programs (51.87 million). Fund balance committed to economic development ($2.07 million), capital projects ($15.10 million), contingencies (56.59 million) and environmental conservation ($2.01 million) is 525.77 million. Another $0.74 million is assigned to budget appropriations and $13.86 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) 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 $25.97 million as of December 31, 2015, an increase over the $23.48 million fund balance as of December 31, 2014. General fund revenues for property taxes, charges for services and miscellaneous revenues increased in 2015. This increase in was offset by increases in expenditures, primarily in the general government function to reimburse the retirement plan for past administration fees paid by the retierment plan, and increases in all other categories of expenditures. Operating transfers out decreased slightly in 2015. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 10.52% of total 2015 expenditures, while total fund balance is 19.72% 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 $70.47 million in fund balance at the end of 2015. This amount was $8.57 million less than the previous year. In 2015 Public Works Fund had a decrease in revenue, primarily due in oil and gas leases, and increase in expenses as a result of the design build project for county road 49 . 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 $2.95 million balance at the end of 2015 down $0.66 from its balance in 2014 due to an increased state allocation for child welfare programs. 4. Human Services Fund. The Human Services Fund accounts for various Federal and State human services grants. Primary finding agencies are DOL, HHS, and CSA. 5. Contingent Fund. The Contingent Fund records any property tax revenue levied by the Board of County Commissioners to cover reasonable unforeseen expenditures. The fund balance decreased by $28.40 million in 2015 including $26.00 million to reimburse the retirement fund for past admin fees paid by the retirement fund. 6. Capital Expenditure Fund. The Capital Expenditure Fund accounts for the construction of major capital facilities. These are the construction of graders sheds, public works addition, building improvemnts and special projects. PROPRIETARY FUNDS OVERVIEW The County's proprietary fund statements provide the same of information found in the government -wide statements, but in more detail. The County has one enterprise -type fund, The Northern Colorado Regional Forensic Laboratory. The crime lab began operations in August of 2013 and all operating expenditures were reimbursed by grant funds. Weld County has four internal service funds. Information on these funds is aggregated in the Proprietary Fund financial statements. 19 GENERAL FUND BUDGETARY HIGHLIGHTS Comparison of Total Fund Balances as of December 31, 2014 and 2015 n I I 70 6 l l ?d1 40 30 20 10 0 - enerai run IJ IC wOr ociai services urnan services onongentrun apitai rrojects tuner govt. rungs 014 The County's budget is prepared according to Colorado statutes. The most significant budgeted fund is the General Fund. In December of 2014, the Board of County Commissioners appropriated $138.43 million for general find expenditures and other financing uses for 2015. Revenue and other financing sources Expenditures and other financing uses Table 3 2015 General Fund Budget (in Millions) Original Budget Amendments Final Budget Actual 134.36 $ 4.43 $ 138.79 138.43 $ 5.30 $ 143.73 141.05 138.56 20 During 2015 mid -year budget amendments included: • $1.885 million for the engineering design work for WCR 49 • $4.5 million transferred to Health Fund for PERA pension liability from General Fund ($2.5 million) and Contingency Fund (S2.0 million) • $0.7 million in Phone Services for new VOIP • $2.5 million transferred to Capital Expenditure Fund for building reserve and remodel of Chase Plaza • $0.5 million for Chase Plaza operational fund and $0.9 in lease revenue • Sheriff budget units were all realigned with the reorganization implemented by the new Sheriff • $1.9 mullion for unanticipated grants for flood recovery and other programs • $3.0 million for unanticipated grant revenue for Child Welfare • $0.55 million in Solid Waste for road impacts from landfills • Supplemental appropriations were made to various departments for salary and benefit reallocations The increase was possible because of excess fund balance, various departments under spending their budgets, and additional unanticipated revenues. Those revenues include building permits ($1.5 million), unanticipated grant revenues ($1.9 million), increase in fees from Clerk and Recorder and Treasurer ($.045 million). CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets. Weld County's investment in capital assets for its governmental and business type activities as of December 31, 2015 totals $340.94 million (net of accumulated depreciation). This investment includes all land, buildings, machinery, equipment, intangible assets and infrastructure. Total capital assets increased 14.5% in the current fiscal year. Major capital asset events during the current fiscal year include the following: • Road construction or major improvements totaling $63.19 million. • Remodel of Probation Building at 918 10th Street, Greeley $0.675 million. • North Jail improvements $0.345 million . • Courthouse and Centennial remodel $0.83 million . • Purchase of Downtown Greeley land $0.7 million . • Communications tower improvements $1.6 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 12. Long-term Debt. At December 31, 2015, 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 $347.49 million in 2015. The county currently has no debt subject to the limitation. No new debt was issued in 2015. Additional information on Weld County's debt can be found in Note S. 21 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 2016 budget. • Plan and accommodate the anticipated drop in assessed valuation in 2017 due to the dramatic drop in oil prices in 2015 . • Implement the Bright Futures program to provide financial aid to Weld County high school graduates and veterans pursuing post high school education or training_ • Begin the two year construction of the concrete five -lane CR 49 south corridor from US 34 to 1-76 as part of a design/build contract • Complete road and bridge mitigation projects resulting from the 2013 flooding • 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 2016 with a fully funded pension plan • Restructured the Sheriff's organization and budget to accommodate the new Sheriff's vision for the office • Add eight additional staff in order to expand the capacity of the jail to 734 beds • Implement a new integrated public safety information system • Fund the oil and gas revenue fluctuation reserve in the Contingency Fund at S30 million • Add staff in the Veteran's Office to increase service level due to aging Vietnam veterans and the Iraq and Afghanistan veterans requiring more services • Begin charging 10% of the actual dispatching costs in 2016 to all agencies, and progressively increasing the actual cost by 2.5% each year until 2020, when the user rates will be 20% of actual costs for dispatching • Implement SB 15-242 which expands the Child Welfare staffing by four in reaction to the 2014 Colorado Child Welfare Workload Study • Medicaid caseloads have grown by 72% in the past three years, partially due to economic factors and partially due to Colorado's implementation of the Affordable Care Act to the point 25% of county residents are on Medicaid • Accommodate the impact of HB14-1317 on the delivery of day care • Participate for the third year in the Title IV -E (Foster Care and Adoption Assistance Entitlement Grant) waiver project • Continue efforts to control health care costs for county employees and their dependents • Transfer administration of the work release pmgram from the Sheriff to Justice Services _ REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of Weld County's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this or for additional financial information should be addressed to the Director of Finance and Administration, 1 150 O Street, Greeley, CO 80631. Request for additional information regarding the Housing Authority should be addressed to Tom Teixeira, Executive Director, Weld Housing Authority, 903 6th Street, Greeley, CO 80631. 22 BASIC FINANCIAL STATEMENTS COUNTY OF WELD STATE OF COLORADO Statement of Net Position December 31, 2015 ASSETS Cash and investments Property taxes receivable Receivables (net of allowance) Due from other governments Internal balances Inventories Other assets Net other post employment benefits assets Restricted assets: Cash and equivalents Capital assets not being depreciated Capital assets net of depreciation Total assets DEFERRED OUTFLOWS OF RESOURCE Pension Plans Total Deferred Outflows of Resources 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 Pension Plans Total liabilities DEFERRED INFLOWS OF RESOURCES Property Taxes Pension Plans Total Deferred Inflows of Resources NET POSITION Invested in capital assets Restricted for: Programs Emergencies Claims Public Works Other purposes Unrestricted Total net position Primary Government Component Units Governmental Activities Business - Type Activities $ 170,462,951 $ 184,492,969 11,982,929 3,262,726 45,138 1,331,160 921,565 860,331 370,772 66,360,525 274,582,385 Total - $170,462,951 $ - 184,492,969 38,279 12,021,208 - 3,262,726 (45,138) 1,331,160 921,565 860,331 370,772 - 66,360,525 - 274,582,38.5 714,673,451 (6,859) 714,666,592 60,633,529 - 60,633,529 60,633,529 23,390,437 9,100,143 670,605 2,876,705 4,380 245,444 4,047,440 54,916,352 60,633,529 3,373 23,393,810 9,100,143 - 670,605 - 2,876,705 - 4,380 95,251,506 245,444 4,047,440 54,916,352 3,373 95,254,879 184,664,089 189,405 - 184,664,089 189,405 184,853,494 - 184,853,494 340,942,910 7,493,150 7,000,000 4,734,408 79,771,261 1,866,083 53,394,168 $ 495,201,980 See accompanying notes to the basic financial statements - 340,942,910 Housing E911 Authority Authority 1,628,715 $ 1,962,415 671,029 339,421 1,158 66,514 7,872 3,234,634 2,375,288 5,536,470 71,571 922,053 14,872 86,443 922,053 7,493,150 7,000,000 4,734,408 79,771,261 1,866,083 (10,232) 53,383,936 _ $ (10,232) $ 495,191,748 $ 7,872 3,234,634 2,280,973 1,379,783 2,288,845 $ 4,614,417 23 COUNTY OF WELD STATE OF COLORADO Statement of Activities Year Ended December 31, 2015 Program Revenues Primary government: Governmental activities: General Government Public Safety Streets and Highways Health and Welfare Culture and Recreation Economic Assistance Total governmental activities Business -type activities Regional Forensic Laboratory Total primary government Component units: Housing Authority E-91 1 Authority Total component units Expenses $ 37,495,116 58,172,560 43,926,350 42,851,911 1,611,666 8,172,946 192,230,549 Charges for Services $ 16,052,536 12,538,210 8,907,810 26,912,220 1,045,533 558,678 66,014,987 Operating Grants and Contributions Capital Grants and Contributions $ 1,503,790 $ 3,470,862 16,251,517 3,058,305 411,605 7,995,143 32,691,222 151,688 140,877 $192,382,237 $ 66,014,987 $ 32,832,099 $ - $ 3,459,674 $ 75,342 $ 3,485,567 $ 2,471,842 2,331,190 $ 5,931,516 $ 2,406,532 $ 3,485,567 $ - GENERAL REVENUES Taxes: Property taxes Specific ownership Severance/Tobacco Royalties Miscellaneous Unrestricted investment earnings Total general revenues and transfers Changes in net position Net position - beginning Net position - ending See accompanying notes to the basic financial statements 24 Net (Expenses) Revenue and Changes in Net Position Primary Government Governmental Activities Business -type Activities $ (19,938,790) $ (42,"163,488) (18,767,023) (12,881,386) (154,528) 380,875 (93,524,340) Total $ (19,938,790) $ (42,"163,488) (18,767,023) (12,881,386) (154,528) 380,875 _ (93,524,340) (10,811) (10,811) $ (93,524,340) $ (10,811) $ (93,535,151) $ - $ Component Units Housing £911 Authority Authority 127,447,260 9,600,158 5,1 15,072 11,330,119 4,220,711 1,190,383 158,903,703 65,379,363 429,822,617 $ 495,201,980 101,235 $ - (140,652) - $ 101,235 $ (140,652) 127,447,260 9,600,158 5,1 15,072 11,330,119 4,220,711 1,190,383 158,903,703 (10,811) 65,368,552 579 429,823,196 $ (10,232) $ 495,191,748 7,633 7,633 9,978 9,978 108,868 (130,674) 2,179,977 4,745,091 $ 2,288,845 $ 4,614,417 COUNTY OF WELD STATE OF COLORADO Governmental Funds Balance Sheet December 31, 2015 ASSETS Cash and Investments Receivables (net of allowance for uncollectibles): Property taxes receivable Delinquent property taxes Accounts Special Assessment Due From other County Funds Advances to Other Funds Due From other Governements Inventory Other Assets Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable Accrued Liabilities Other Liabilities Due to other County funds Due to other Governments Unearned Revenues Unexpended Grant revenue Total Liabilities 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 and Fund Balances General Fund $ 37,268,635 114,345,733 1,198,857 2,651,679 288,443 34,906 68,918 1,642,889 144,313 1,133,401 723,210 120,353 $ 156,724,694 $ 102,681,666 $ 14,473,245 Public Works Fund $ 76,864,691 Social Services $ 2,501,944 9,754,621 105,895 347,543 11,624,399 2,460,212 212,257 64,695 740,861 15,102,424 115,651,606 115,651,606 867,532 8,432,222 2,071,938 736,158 13,862,814 25,970,664 70,471,169 2,948,954 $ 156,724,694 $ 102,681,666 $ 14,473,245 16,709,931 164,622 7,772,355 26,666 10,000 10,312,680 413,726 1,900 23,333 10,751,639 16,890,192 4,568,666 21,458,858 1,133,401 69,337,768 78,667 892,087 4,380 5,706 670,605 3,201 1,654,646 9,869,645 9,869,645 120,353 2,828,601 See accompanying notes to the basic financial statements 26 Other Total Human Contingent Capital Governmental Governmental Services Fund Expenditure Funds Funds $ 50,950 $ 6,611,555 $ 16,149,185 $ 10,890,600 $ 150,337,560 23,295,900 80,835 2,750 476 1,550,919 24,627 16,709,931 - 180,816,116 73,563 - 1,623,772 1,100 1,167,808 11,943,235 26,666 298,919 - 34,906 - 3,262,726 1,277,714 3,460 871,650 $ 1,629,722 $ 29,988,290 $ 32,933,779 $ 12,061,868 $ 350,493,264 165,739 157,313 660 38,760 362,472 591,443 44,143 22,817,071 249,715 4,173,053 - 4,380 109,621 2,225 332,369 670,605 333,925 145,554 570,708 - - 779,621 1,034,989 441,637 29,347,807 - 23,398,536 16,799,133 24,627 1,242,623 23,398,536 - 182,609,1 12 - 4,568,666 16,799,133 - 187,177378 - - 3,460 2,149,373 - - 9,608,777 91,449,991 6,589,754 15,099,657 2,007,994 25,769,343 - - - 736,158 - - - 13,862,814 1,267,250 6,589,754 15,099,657 11,620,231 133,967,679 $ 1,629,722 $ 29,988,290 $ 32,933,779 $ 12,061,868 $ 350,493,264 COUNTY OF WELD STATE OF COLORADO Reconciliation of Total Governmental Fund Balances To Statement of Net Position December 31, 2015 Total governmental fund balances Amounts reported for governmental activities in the Statement of activities are different because: Capital Assets used in governmental activities are not financial resources and therefore are not reported in the funds Long-term liabilities, including compensated absences, are not due and payable in the current period and therefore are not reported in the funds Compensated Absences Pension Liability Net Other Post Employment Benefits Asset Deferred Inflows Pension Plans Deferred Outflows Pension Plans Accounts receivables that do not provide current financial resources, are offset by deferred inflows in the funds Internal service funds are used by management to charge the costs of insurance and other services to individual funds_ The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position Internal Services used by Enterprise Fund Net position of governmental activities See accompanying notes to the basic financial statements $ 133,967,679 320,141,112 (4,292,884) (54,9 1 6,352) 860,331 60,633,529 (189,405) 4,568,666 34,419,072 10,232 $ 495,201,980 28 29 COUNTY OF WELD STATE OF COLORADO Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended December 31, 2015 REVENUES: Taxes Licenses and Permits Intergovernmental Fines and Forfeitures Charges for Services Miscellaneous Fees Total Revenues EXPENDITURES: General Government Public Safety Public Works Public Health and Welfare Culture and Recreation Economic Assistance Capital Expenditures Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers - in Transfers - out Total Other Financing Sources (Uses) Net Changes in Fund Balance Fund Balances at Beginning of Year Fund Balance at End of Year See accompanying notes to the basic financial statements General Fund $ 102,986,748 $ 3,716,039 6,567,075 713,139 7,465,335 7,713,391 11,802,530 140,964,257 63,856,830 54,659,691 8,784,169 260,385 1,265,028 434,497 2,464,042 131,724,642 9,239,615 85,000 6,832,647 (6,747,647) 2,491,968 23,478,696 Public Works Fund Social Services 30,716,090 543,508 17,638,010 2,006,928 15,979,205 1,547,820 68,431,561 76,789,040 214,086 77,003,126 (8,571,565) (8,571,565) 79,042,734 $ 8,298,019 24,810,497 33,108,516 33,760,187 9,429 33,769,616 (661,100) (661,100) 3,610,054 $ 25,970,664 $ 70,471,169 $ 2,948,954 30 Human Services Contingent Fund Capital Expenditure - $ (248,997) $ 7,995,143 420,136 143,150 8,558,429 8,062,422 (248,997) 26,150,000 8,062,422 26,150,000 496,007 (26,398,997) 12,351 2,000,000 12,351 (2,000,000) Other Governmental Funds (156,215) $ 1,100 126,126 209,580 180,591 131,252 3,586,331 3,717,583 (3,536,992) Total Governmental Funds 16,273 $ 3,469,910 21,040 3,660,804 102,311 7,270,338 1,042,582 8,694,027 358,431 40,095 10,135,135 (2,864,797) 9,403,294 667,998 8,735,296 508,358 (28,398,997) 758,892 34,988,751 (3,536,992) 18,636,649 $ 1,267,250 $ 6,589,754 $ 15,099,657 5,870,499 5,749,732 141,611,918 4,259,547 60,481,735 734,179 13,553,203 24,064,183 13,559,930 258,264,695 90,138,082 55,702,273 85,573,209 42,714,599 1,623,459 8,496,919 6,313,983 290,562,524 (32,297,829) 9,500,645 9,500,645 (32,297,829) 166,265,508 $ 11,620,231 $ 133,967,679 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, 2015 Net Changes in fund balances - total governmental funds $ (32,297,829) 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 69,443,821 (24,279,782) 45,"164,039 Net effect of various transactions involving capital assets (i.e. sales, disposals) is a decrease to net position (2,208,651) 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 Pension Liability and related Deferred Inflow and Outflows Net Other Post Employment Benefits Obligation (288,470) 54,436,889 207,877 Accounts receivables that do not provide current financial resources, are offset by deferred inflow of resources in the funds (532,062) Internal service funds are used by management 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. 886,759 Internal services used by Enterprise Funds 10,811 Change in net position of governmental activities $ 65,379,363 See accompanying notes to the basic financial statements 32 COUNTY OF WELD STATE OF COLORADO Statement of Net Position Proprietary Funds December 31, 2015 ASSETS Cash and cash equivalents Property taxes receivable Accounts Due From other County Funds Inventory Other Assets Total Current Assets Capital Assets: Improvements other than buildings Construction in progress Buildings Machinery and Equipment Accumulated Depreciation Total Capital Assets Total Assets LIABILITIES AND FUND EQUITY Current Liabilities: Accounts Payable Accrued Liabilities Unearned Revenues Adv from General Fund Total Current Liabilities Deferred Inflows of Resources Property Taxes Total Deferred Inflows Total Liabilities Net Position Invested in capital assets Restricted for: Insurance Claims Unrestricted Total Net Position Some amounts reported for business -type activities in the statement of net assets are different because certain internal service fund assets and liabilities are included with business -type activities Total Net Position See accompanying notes to the basic financial statements Business -type Activities Regional Forensic Laboratory 38,279 38,279 38,279 3,373 34,906 38,279 38,279 (10,232) $ (10,232) Governmental Activities Internal Service Funds $ 20,496,163 2,053,081 13,028 33,450 53,446 49,915 22,699,083 1,173,951 910,643 2,1 11,422 45,301,784 (28,696,002) 20,801,798 43,500,881 573,366 4,927,090 1,526,376 7,026,832 2,054,977 2,054,977 9,081,809 20,801,798 11,330,386 2,286,888 $ 34,419,072 33 COUNTY OF WELD STATE OF COLORADO Statement of Revenue, Expenses and Changes in Net Position Proprietary Funds For the Fiscal Year Ended December 31, 2015 Operating revenues: Employer Contributions Charges for Services Total Operating Revenues Operating expenses: Personnel Services Supplies Purchased Services Insurance and Bonds Depreciation Other Claims Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Taxes Earnings on investments Miscellaneous Grants Gains (loss) on Disposal Judgment and Damages Total Nonoperating revenues (expenses) Income (loss) before contributions or transfers Transfers - in Changes in Net Position Total Net Position Beginning of Year Total Net Position at End of Year Some amounts reported for business -type activities in the statement of activities are different because the net revenue (expense) of certain internal service funds is reported with business -type activities. Change in net position of business -type activities See accompanying notes to the basic financial statements Business -type Activities Regional Forensic Laboratory Governmental Activities Internal Service Funds - $ 18,189,712 - 11,192,402 - 29,382,114 2,813 135,256 2,808 140,877 (140,877) 140,877 140,877 310,864 1,471,946 8,476,611 684,730 4,115,324 249,755 15,736,778 31,046,008 (1,663,894) 1,956,254 28,013 2,549 430,532 98,778 34,527 2,550,653 886,759 886,759 33,532,313 - $ 34,419,072 (10,811) $ (10,811) 34 COUNTY OF WELD STATE OF COLORADO Statement of Cash Flows Proprietary Funds For the fiscal year ended December 31, 2015 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 Judgments/damages/losses Miscellaneous revenues Net cash provided (used) by operating activities CASHFLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes Transfers/Advances Grants Net cash provided (used) by noncapital financing activities Business -type Activity Enterprise Fund Regional Forensic Laboratory ga (26,188) (111,316) (137,504) (1,251) 138,755 137,504 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 Judgments/damages/losses Miscellaneous revenue Change in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in due from other funds (Increase) decrease in inventories (Increase) decrease in other assets Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in other liabilities Increase (decrease) in deferred revenue Total adjustments Net cash provided (used) by operating activities Noncash investing, capital, and financing activities: Contributions of capital assets from (to) government Loss on Disposal of Asset See Accompanying notes to the basic financial statements See accompanying notes to the basic financial statements ga mI ga mI mI (140,877) ga 3,373 3,373 (137,504) im Governmental Activites Internal Service Funds 97,245 29,109, 633 (24,930,821) (1,210, 723) (301,110) 34,527 2.549 2,801, 300 1,954,981 440,053 2,395, 034 (4,374,691) 263,597 (4,111,094) 28,013 1,113,253 19,382,910 20,496,163 (1,663, 894) 4,115, 324 34,527 2,549 (21, 331) (33,450) 3,883 18,936 43,621 146,731 154,404 4,465,194 2,801,300 71,501 35 COUNTY OF WELD STATE OF COLORADO Statement of Fiduciary Net Position Fiduciary Funds December 31, 2015 Weld County Other Post Employment Agency Funds Retirement Benefits ASSETS Cash and cash equivalents Accounts Receivable (net of allowance for uncollectible): Restricted Assets Restricted Cash Restricted Investments Total Assets LIABILITIES AND NET POSITION Accounts Payable Due to other Governments Total Liabilities Net Position Restricted for Pension Net Position Restricted for Other Post Employment Benefits TOTAL NET POSITION See accompanying notes to the basic financial statements $ 9,724,221 $ 6,805 - $ - 2,124,215 1,487,562 232,157,558 $ 9,731,026 $ 234,281,773 $ 1,487,562 $ 205,992 $ 24,426 $ 9,525,034 $ 9,731,026 $ 24,426 $ 234,257,347 1,487,562 $ 234,257,347 $ 1,487,562 36 COUNTY OF WELD STATE OF COLORADO Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended December 31, 2015 Weld County Other Post Employment Retirement Benefits Additions: Employer Contributions Employee Contributions Earnings on Investments, net of investment related expenses of $337,127 and SO Net Depreciation in Value of investments Total Additions Deductions: Actuarial Fees Benefit Payments Supplies Total Deductions Change in Net Assets Net Position - Beginning Net Position - Ending See accompanying notes to the basic financial statements $ 58,861,621 $ 7,710,757 65,382 8,058,654 11,712 (10,770,242) 63,860,790 77,094 69,669 14,677,106 399,487 4,552 14,751,327 399,487 49,109,463 (322,393) 185,147,884 1,809,955 $ 234,257,347 $ 1,487,562 37 NOTES TO THE FINANCIAL STATEMENTS t t c O� lei G r 6L r _ K�4yh 38 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Note 1 - Summary of Significant Accounting Policies: The County of Weld, Colorado ("County") was established in 1861, and on January 1, 1976, became a home rule county under the provisions of Section 30-35-501, CRS, 1973. The County operates under an elected commissioner form of government. The County provides the full range of services contemplated by statute or charter. These include general goverrunent functions, public protection and safety, health, social services, human resource services, public improvements, road and bridge operations, planning and zoning, and general administrative services. The financial statements of the County have been prepared in conformity with generally accepted accounting principles (GA AP) as applied to governmental units. The following summary of significant accounting policies is presented to assist the reader in evaluating the County's financial statements. A. Reporting Entity: Weld County is a political subdivision of the State of Colorado, governed by an elected five -member Board of County Commissioners. There are also four other elected officials of Weld County (Assessor, Clerk and Recorder, District Attorney, and Sheriff). The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations. Each discretely presented component unit is reported in a separate column in the government -wide financial statements (see note below for description) to emphasize that it is legally separate from the government. Discretely presented component units: The Weld County Housing Authority is responsible for assisting Weld County residents with housing assistance. The Board of County Commissioners appoints all of the five -member Housing Authority Board, The County has the ability to remove any of the appointed board members, they can modify decisions made by the board and can hire or fire persons responsible for the day to day operations. The Weld County Housing Authority is governed by state regulations, but was designated as part of the County for budgetary and audit purposes by an act of the Colorado General Assembly in 1989. A complete set of financial statements can be obtained at the entity's administrative offices: Weld County Housing Authority 903 6th Street Greeley, CO 80631 The E911 Emergency Telephone Service Authority Board was created by intergovernmental agreements pursuant to Article 11 of Title 29, C.R.S., as amended, that authorizes the county, municipalities within the county, and special districts within the county to enter into an agreement for the purpose of providing 911 emergency telephone services. Per the state statute cited above, the agreement creates a separate legal entity which is responsible for administering the operations of the 911 emergency telephone service program in Weld County. The authority board consists of seven members with four selected by the Weld County Commissioners, one member each is selected by the City of Greeley, City of Fort Lupton and Weld County Sheriff. Under the by-laws of E911 Authority, Weld County is required to pay all operating costs. They are to maintain all accounts and have accounts audited. State statute requires that all funds be maintained by the Weld County Treasurer. The operation of the E911 authority is done contractually by the Weld County Communication Regional Center. There are no separate financial statements prepared for the E911 component unit. 39 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Because they provide services to or otherwise benefit Weld County, the financial statements of the following organizations are blended into the County financial statements: Weld County Retirement Plan — The Retirement Board consists of five members, two selected by participating employees, two appointed by the Board of County Commissioners, and the fifth being the County Treasurer, The County funds half of the retirement plan, which covers substantially all permanent, full-time employees of Weld County. The operation of the plan is accounted for in the Weld County Retirement Fund, as a Pension Trust Fund, Complete Financial statements can be obtained at the Weld County Treasurer's Office: Weld County Treasurer's Office 1400 North 17th Avenue Greeley, CO 80631 Weld County Finance Corporation — The Weld County Finance Corporation ("Corporation") was formed in 1987 as a not -for-profit corporation under section 501(c)(4)of the Internal Revenue Code, and exists solely to acquire real estate and construct buildings for lease to the County. The Board of County Commissioners appoints the three -member Board of Directors of the Corporation, and approves all projects undertaken by the Corporation. The members of the Board of Directors are employees of the County. There are no separate financial statements prepared for the Weld County Finance Corporation. The Law Enforcement Authorities (LEA) were formed in accordance with Section 30-11-401, CRS. The law enforcement authorities are taxing units created by the county to provide additional law enforcement services by the county sheriff to residents in developed unincorporated areas of the county. The governing board of the law enforcement authorities is the five Weld County Commissioners. Law enforcement services to the authority are provided contractually by the county sheriff There are no separate financial statements prepared for the Law Enforcement Authorities. The Local Improvement Districts (LID) have not been included in the County's financial statements individually, as they are immaterial, but are included as a blended component unit of Public Works, a special revenue fund. The Board of County Commissioners can create these assessment districts to construct or rehabilitate and finance public streets, storm drainage, water systems, sanitary sewer, or street lighting. The Primary purpose of an LID is to assess the costs of public improvements to those who are specially benefited by the improvement. The LID exists only as geographic area within which improvements are constructed and as an administrative subdivision of the county. Having no board of directors, they do not operate in any capacity as an independent governmental entity. The county governing board, Board of County Commissioners, makes all decisions on behalf of this administrative entity. There are no separate financial statements prepared for the Local Improvement Districts. The following related organizations are excluded from the accompanying financial statements because the County's accountability for these organizations does not extend beyond various appointments. North Colorado Medical Center — The Board of County Commissioners owns land underlying the main facility of the Medical Center, which land is currently leased to the Colorado Hospital Finance Authority as part of the security for financing the bonded indebtedness of the Medical Center. The indebtedness is not an obligation of the Board of County Commissioners and no taxpayer funds or Board of County Commissioners funds are obligated to pay any portion of the principal, premium or interest on the Bonds. The land is leased back from the Authority to the Board of Trustees, a seven member Hospital Board of Trustees appointed by the Board of County Commissioners. The Hospital Board of Trustees has entered into an operating sublease of the ground and facilities with NCMC, Inc., a 501(c)(3)entity, with three of its members also serving on the Board of Trustees, which, in turn, has contracted with Banner Health Systems to operate the Medical Center. NCMC has the ability to incur its own debt and its operations are financed totally by patient revenues. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Greeley -Weld Airport Authority — The County Commissioners appoint two of the five Airport Authority Board members. The County has contributed approximately 5% of the funds for capital construction. The Authority has full autonomy under Colorado State law, can incur debt, and funds its operations totally from user fees. Weld Library District — The County Commissioners, together with the concurrence of the city councils of seven participating municipalities, appoint the seven -member Library District Board. The Library District Board has total autonomy under the State Library Act to incur debt, establish budgets, and levy property taxes to support the District's library system. Colorado Counties Casualty and Property Pool (hereinafter referred to as "CAPP")-CAPP was formed July 1, 1986, by an intergovernmental agreement by member counties as a separate and independent governmental and legal entity pursuant to the provisions of Article XIV, Section 18(2) of the Colorado Constitution and Section 29- 1-201 et seq, 24-10-115.5, and 29-13-102, CRS, as amended. Each member county in this intergovernmental agreement has the power under Colorado law to make provision for the property and casualty coverage which constitute the functions and services jointly provided by means of the CAPP. The Insurance Commissioner of the State of Colorado has such authority with respect to the CAPP as is provided by applicable Colorado statutes. The purposes of the CAPP are to provide a risk management fund for defined property and casualty coverage and to assist members in controlling costs by providing specialized governmental risk management services and systems. It is the intent of the members to use member contributions to defend and indemnify, in accordance with the bylaws, any member against states liability or loss to the limit of the financial resources of the risk management fund. It is also the intent of the members to have CAPP provide needed coverage at reasonable costs. All income and assets of CAPP shall be at all times dedicated to the exclusive benefit of its members. Weld County, through its Insurance Internal Service Fund, recognizes an expense for the amount paid to CAPP annually for these coverages. Weld County is a charter member of CAPP and has been a continuous member since July 1, 1986_ B. Government -wide Financial Statements The County's basic financial statements consist of government -wide statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information. The government -wide focus is more on the sustainability of the County as an entity and the change in aggregate financial position resulting from activities of the fiscal period. The statement of net position and the statement of activities display information about the county as a whole. In the government -wide statement of net position, both the governmental and business -type activities columns are presented on a consolidated basis by column. These statements include the financial activities of the primary government, except for fiduciary activities. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The government -wide statement of activities reflects both the direct expenses and net cost of each function of the County's governmental activities and business -like activity. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include charges paid by the recipient for the goods or services offered by the program. Direct expenses and program revenues resulting from interfund activity are treated as such in the participating funds and are not eliminated as part of the consolidation process. Grants and contributions that are restricted to meeting the operational or capital requirements of a particular program and interest earned on grants that is required to be used to support a particular program are included in operating grants and contributions, or capital grants and contributions. Revenues which are not classified as program revenues are presented as general revenues of the County, with certain limited exceptions. The comparison of direct expenses with program revenues identifies the extent to which each government function or business segment is self-financing or draws from the general revenues of the County. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Fund Financial Statements The financial transactions of the County are recorded in individual funds. A fund is defined as a fiscal and accounting entity with a self balancing set of accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Separate statements for each fund category — governmental, proprietary, and fiduciary — are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and presented as non -major funds. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Northern Colorado Regional Forensic Laboratory enterprise fund and of the government's internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. C. Measurement Focus Government -wide, Prorietary and Fiduciary Fund Financial Statements The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund statements. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. Revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied Under the terms of grant agreements, the County funds certain programs by a combination of specific cost - reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the County's policy to first apply cost - reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues, except for property taxes, to be available if they are collected within 90 days of the end of the current fiscal period. Property taxes are considered available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, licenses, grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 The County reports the following major governmental funds: The General Fund is the general operating fund of the County which accounts for all financial resources that are not accounted for in other funds. Operations of the County such as public safety, planning and zoning, property valuation, tax collection and distribution, vehicle licensing, County administration, and other activities financed from taxes and general revenues are reflected in this fund. The Public Works Fund records costs related to County road and bridge construction and maintenance except for engineering, which is recorded in the General Fund. By State law, Colorado counties are required to maintain a Road and Bridge Fund and a portion of road and bridge taxes is allocated to cities and towns for use in their road and street activities. The Social Services Fund administers human services programs under state and federal regulations. Programs include, but are not limited to, Medicaid, Food Stamps, Foster Care programs, and Temporary Assistance to Needy Families (TANF). Colorado counties are required by state law to maintain a Social Services Fund. The Social Service fund is funded by state and federal grants as well as property taxes. The Human Services Fund primary programs are associated with the Workforce Investment Act (WIA) funded under the Department of Labor, Employment and Training Administration. The Contingent Fund records any property tax revenue levied by the Board of County Commissioners to cover reasonably unforeseen expenditures_ The Capital Expenditures Fund accounts for all the County's construction projects. The County chooses to use the pay as you go plan instead of debt. Property taxes are used to fund the Law Enforcement Center and the expansion of the Detention Center. The County reports the following enterprise fund: The Northern Colorado Regional Forensic Laboratory Fund accounts for all of the maintenance and operation costs for the Northern Colorado Regional Forensic Laboratory. It is funded by rent paid by the participating agencies. The County also reports the following fund types: The Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the County on a cost reimbursement basis. The County's internal service funds report on self-insurance programs for employee health, dental and vision benefits, risk management, unemployment, fleet services, telecommunications and acquisitions of real estate and construction of buildings used by County departments. Services provided and used by internal services funds are not entirely eliminated from the government -wide statement of activities. The primary government program expenses and expenses for the business -type activities on the government -wide statement of activities are decreased to eliminate revenue over expenditures in service funds where revenues exceed expenditures and increased to eliminate internal service funds that have expenditures in excess of revenues. The Agency Funds account for assets held by the County as an agent for individuals, private organizations and other governments. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The County has funds held for other local governmental units, employee/employer payroll taxes, a Section 125 plan, and the Weld County Federal Mineral Lease District. The Fiduciary Trust Funds account for the activities of the Weld County Retirement Plan and the Weld County Other Post Employment Benefit Plans. These funds accumulate resources for pension benefit, and other post employment benefit payments to qualified county employees. The Plans use the accrual basis of accounting. Employee and employer contributions are recognized as revenues in the period in which the contributions are due. Benefits and refunds are recognized when due and payable in accordance with terms of the Plan. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 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-91 I Authority are stated at fair value. Any bank accounts not maintained by the Treasurer are displayed as "Restricted Assets" within the appropriate fund and are stated at cost. The County considers cash and cash equivalents in proprietary funds to be cash on hand and demand deposits. In addition, because the treasury pool is sufficiently liquid to permit withdrawal of cash at any time without prior notice or penalty, equity in the pool is also deemed to be a cash equivalent. For the purpose of cash flows, cash and cash equivalents are determined by original maturity of three months. Investments are reported at fair values using quoted market prices. 2. Property Taxes Property taxes attach as an enforceable lien on property as of January 1. Taxes were levied on December 21, 2015, and are payable either in two installments due on February 28 and June 15 or in full on April 30. The bill becomes delinquent on March 1, May 1, and June 16 and penalties and interest may be assessed by the County. The County, through the Weld County Treasurer, bills and collects its own property taxes, as well as property taxes of all other taxing authorities within the County. In accordance with Section 14-7 of the Weld County Home Rule Charter, all ad valorem tax levies for County purposes, when applied to the total valuation for assessment of the County, shall be reduced so as to prohibit the levying of a greater amount of tax revenue than was levied from ad valorem taxation in the preceding year plus five percent (5%), except to provide for the payment of bonds and interest. The Board of County Commissioners may submit the question of an increased levy to the County Council and, if in the opinion of a majority of the County Council may grant an increased levy for the County in such amount as it deems appropriate, and the County is authorized to make such increased levy. Any one capital project requiring a capital expenditure out of funds procured by ad valorem taxation equal to a three mill levy for three years, shall be prohibited unless approved by a majority vote of the qualified electors at a general or special election per Section 14-8 of the Weld County Home Rule Charter. 3. lnterfund Transactions Transactions between finds 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 fiords 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 finds are reported as "due to/from other funds". Interfund balances are generally expected to be repaid within one year of the financial statement date. Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances". COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 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. The consumptive method of accounting is used to recognize these expenses in the funds. 5. Capital Assets Capital assets, which include property, plant, equipment, intangible assets (computer software and right of ways for land use), and infrastructure assets (e.g., roads, bridges and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the County as assets with an initial, individual cost of more than $5,000 and a useful life of more than one year. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. All reported capital assets, except for gravel roads and intangible assets are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives: Buildings Improvements Infrastructure - Bridges Infrastructure - Roads Equipment Heavy Equipment 20 - 50 years 20 years 50 years 20 years 3 - 5 years 10 - 20 years Statement 34 allows an alternative approach which would reflect a reasonable value of the asset and the cost incurred to maintain the service potential to locally established minimum standards in lieu of depreciation. To elect this option, the County must develop and implement an asset management system which measures, at least every third year by class of asset, if the minimum standards are being maintained. Related disclosures are additionally required as part of the Required Supplementary Information. The County has elected to use the alternative approach only for gravel roads. 6. Compensated Absences County employees accumulate sick leave and vacation benefits at rates of 8 hours per month and 8 to 16 hours per month, respectively, depending on length of service. In the event of retirement or termination, an employee is paid 100% of accumulated vacation pay. An employee whose date of hire is prior to January 1, 1985, is paid for 50% of accumulated sick leave hours up to the equivalent of one month; if the employee's date of hire is after January 1, 1985, no sick leave is paid upon retirement or termination. Up to 320 hours of annual vacation may be carried over from one year to the next. Compensatory time is granted (except for official, professional, and administrative positions) at the rate of one and one-half hours for each overtime hour worked, not to be accumulated in excess of forty hours. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 The unpaid sick leave, vacation pay and related benefits at the end of the period will generally not be paid with expendable and available resources. Proprietary funds accrue sick leave, vacation pay and related benefits in the period they arc earned by the employees. The entire compensated absence liability is reported on the government -wide financial statements. Expenditures and liabilities for compensated absences are reported on the government fund statements only when the liability for the compensated absences becomes due. 7. Long-term obligations In the government -wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net position. 8. Fund Equity The Governmental Accounting Standards Board (GASB) has issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54), As prescribed by GASB Statement 54 governmental funds report find 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, 2015, find 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 S. Unassigned fund balance is the residual classification for find balance and includes all spendable amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. The County's General Fund is the only fund that carries a balance in this category. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Order of Fund Balance Spending Policy The County's policy is to utilize funds in the following order: restricted fund balance, committed fund balance, assigned fund balance, and unassigned fund balance. The Board of County Commissioners adopted the County Fund Balance Policy on December 14, 2011, nunc pro tunc January 1, 2011. The policy was created to help reduce the negative impact on the County in times of economic uncertainty, major fluctuations in oil and gas assessed valuations, and potential losses of funding from other governmental agencies, The policy established minimum requirements for reserves and guidelines for the use of certain funds. The reserves and restrictions are also consistent with the requirements under Colorado statute or state constitutional requirements. The County Fund Balance Policy requires the following: • Any remaining fund balance following all restrictions and commitments in the Health Fund shall be assigned for the purpose of future health programs for the benefit of the citizens of Weld County. • Any remaining find balance following all restrictions and commitments in the Social Services Fund shall be assigned for the purpose of future welfare programs for the benefit of the citizens of Weld County • Any remaining fund balance following all restrictions and commitments in the Human Services Fund shall be assigned for the purpose of future welfare, senior, and employment programs for the benefit of the citizens of Weld County • The Contingency Fund shall maintain a minimum fund balance to cover a minimum ten (10) percent of the annual expenditures and maximum of twenty (20) percent of the annual total expenditures as determined by the Director of Finance and Administration to provide: ("1) a reasonable level of assurance that Weld County's operations will continue even if circumstances occur where revenues are insufficient in an amount that is equal to at least one -percent of annual expenditures to cover necessary expenses for public safety, public welfare and public works; (2) there is a major reduction in oil and gas assessed valuations; or (3)there are other unexpected needs or emergency situations costing an amount that is equal to at least one -percent of annual total expenditures that do not routinely occur. The Contingency Fund shall be funded by property tax with a half -mill applied to the county's assessed value annually, unless the Board of Weld County Commissioners adjusts the amount in the annual budget process. • The three -percent TABOR emergency reserve required by Article X, Section 20(5) of the Colorado Constitution shall be a restricted fund balance in the General Fund in an amount equal to seven million dollars or three -percent of the TABOR revenue limit, whichever is greater, COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Fund balances for all major and non -major governmental funds as of December 31, 2015, are distributed as follows: Nonsnendable Inventory Prepaid Expenses Total Nonspendable Restricted for Public Works Health Social Services Human Services TABOR Reserve Other Purposes Total Restricted Committed to Capital Projects Solid Waste Disposal General Contingencies Economic Development Total Commitments Assigned Appropriations in budget Total Assigned General Public Social Works Services 144,322 1,133,401 723,210 120,353 867,532 1,133,401 120,353 - 69,337,768 7,000,000 1,432,222 2,828,601 8,432,222 69,337,768 2,828,601 2,071,938 2,071,938 736,158 736,158 Unassigned 13,862,814 Total Fund Balance 25,970,664 70,471,169 2,948,954 48 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Human Capital Services Contingent Expenditures Non Major Total 24,627 1,277,723 3,460 871,650 24,627 - - 3,460 2,149,373 1,242,623 - 69,337,768 9,174,916 9,174,916 - 2,828,601 - 1,242,623 7,000,000 433,861 1,866,083 1,242,623 - - 9,608,777 91,449,991 6,589,754 15,099,657 15,099,657 2,007,994 2,007,994 6,589,754 - 2,071,938 6,589,754 15,099,657 2,007,994 25,769,343 736,158 736,158 - 13,862,814 1,267,250 6,589,754 15,099,657 11,620,231 133,967,679 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 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, 20"15, the county's General Fund has a total of $1,581,113 in encumbrances, which were reported as part of the assigned fund balance on the governmental fund balance sheet. Encumbrance balances by major funds and non -major funds as of December 31, 2015 are: Restricted Committed General Fund $ Public Works Capital Non Major Total 9. Net Position 2,356,141 2,356,141 Assigned Total - $ 736,158 $ 462,406 39,296 501,702 736,158 2,356,141 462,406 39,296 736,158 3,594,001 Net position represents the difference between assets and liabilities. Net position invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition construction of improvements of those assets. Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislation adopted by the County or through external restrictions imposed by creditors, grantors, laws or regulations of other governments. The County first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. 10. Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Note 2 - Stewardship, Compliance, and Accountability A. Budgetary information An annual budget and appropriation ordinance is adopted by the Board of County Commissioners in accordance with the Colorado State Budget Act and Weld County Home Rule Charter. The budget is prepared on a basis consistent with generally accepted accounting principles. Budgets are established for all Governmental funds, internal Service funds and the Enterprise Fund. The accounting system is employed as a budgetary management control device during the year to monitor the individual departments_ The fund level is the level of classification at which expenditures may not legally exceed appropriations, except for the General Fund where the department level of expenditures cannot legally exceed appropriations. During the year, several supplemental appropriations were necessary. All annual appropriations lapse at year end. 50 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 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 2015, two supplemental appropriation ordinances were enacted. Budget amounts reported in the accompanying required supplemental information reflect these supplemental appropriations. B. Excess of expenditures over appropriations Excesses of expenditures over appropriations in General Fund departments can be seen in the expenditures section of the Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual. Expenditures exceeded appropriations in the Law Enforcement Authority funds (Special Revenue). The excess expenditures in the law enforcement funds were a result of excess funds being available at the end of the year. The purpose of the law enforcement authorities is to collect taxes to fund law enforcement services in unincorporated parts of Weld County and any excess funds can be used to offset the cost of law enforcement. In the Internal Service funds expenditures exceeded appropriations in the Motor Pool and Insurance funds. In the Motor Pool fund fleet depreciation was higher than budgeted as the County fleet expanded, and purchased services were higher than estimated for the year, in the Insurance fund. Note 3 - Equity in Pooled Cash and Investments A. Cash and Investments Cash and investments held by the Treasurer's office at December 31, 2015 as reported by the financial institutions, consisted of the following: Deposits Investments: FFCB 15,000,000 FHLB 5,000,000 FHLM 39,990,000 FNMA 64,990,000 $ 64,924,912 124,980,000 Total $ 189,904,912 Cash and investments held by the Treasurer's office at December 31, 2015, excluding outstanding warrants, reported in government -wide and agency funds consisted of the following: Government -wide $172,012,065 Agency and Fiduciary funds 17,892,847 Total $189,904,912 B. Deposits The Colorado Public Deposit Protection Act (PDPA) requires that all local governments deposit cash in eligible public depositories. Eligibility is determined by state regulations. The State regulatory commissioners regulate the eligible public depositories. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. PDPA allows the financial institutions to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2015, the County had deposits of $89,904,912 collateralized with securities held by the financial institutions' agents but not in the County name. 51 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 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, 2015, the County had the following investments: Investment Maturities (in Years) 1 or less $ 0 1 -3 yrs. 74,970,000 3 - 5 yrs. 50,010,000 $124,980,000 Money Market $ 64,924,912 Total $189,904,912 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, 2015, the County investments in the Federal Farm Credit Bank, Federal Home Loan Mortgage and Federal National Mortgage Association were rated AAA by Standard & Poor's. Federal Home Loan Bank investments were rated AA+ by Standard & Poor's at December 31, 2014. Money Market Funds were managed by Wells Fargo Bank in accordance with state regulations pledged at 105% 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, 2015, the County's investments in Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage, and Federal National Mortgage Association and Federal Home Loan Mortgage represented 12.0%, 4.0%, 32.0% and 58.0%, respectively of the County's total investments. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 F. Interest Rate Risk State Statutes limit the maximum maturity date unless an exception is made by the county commissioners, which does not exist at the present time, to five years. The weighted average maturity in the portfolio on December 31, 2015 was 3.18 years. This factor combined with the high quality credit risk of the portfolio limit interest rate risk to a very small percentage of the portfolio, In fact, at year end the average mark -to -the -market was within one percent of the county's basis. G. Money Market Funds in Bank Account The County had $22,366,540 invested in overnight pooled money with Wells Fargo on December 31, 2015. The County's investment at Wells Fargo is a direct obligation of the bank and the fiends 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 fiends 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, 2015 restricted cash balance of $370,772 is made up of $65,000 advanced to cover insurance claims and $305,772 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 $1,628,715 at December 31, 2015. Bank and investment balances before reconciling items were $1,625,715 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 $ 1,628,715 Restricted cash consists of tenant section 8 HAP reserves and escrow. The available cash balance of $1,962,415 for the E911 authority is included in the Agency and Fiduciary Fund Cash balance of $17,892,847 held at the Weld County Treasurers Office listed above. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 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 Internal Service Internal Service Transfers in/out Payable Fund Social Services $ 380 Human Services 10 Capital 99,621 Capital 10,000 Social Services 476 General Fund Public Works Social Services Health Internal Service Capital 23,825 1,900 4,850 2,225 650 $ 143,937 Transfers are indicative of funding for capital projects or subsidies of various County operations and re -allocation of special revenues. The following schedule briefly summarizes the County's transfer activity: Transfer From: Contingent General Fund Fund Transfer To: General Fund $ Human Services 12,351 Non -Major Government 6,820,296 Non -Major Total Governmental $ - $ 85,000 $ 85,000 - - 12,351 2,000,000 582,998 9,403,294 $ 6,832,647 $ 2,000,000 $ 667,998 $ 9,500,645 54 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Note 5 - Allowance for Uncollectible Accounts Receivable The allowance for uncollectible receivables consists of the following at December 31, 2015: Fund Type General Public Works Social Services Contingent Capital Expenditures Internal Service Total Allowance for Uncollectible $ 307,229 42,144 27,770 20,350 19,324 7,010 $ 423,827 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Note 6 - Capital Assets Capital asset activity for the year ended December 31, 2015, was as follows: Governmental activities Capital Assets not being depreciated Land and water rights Intangible Assets Gravel Roads Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Buildings Improvements Equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation Buildings imporvements Equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Governmental activities capital assets, net Beginning Balance $ 8,776,363 1,839,538 14,899,213 13,198,295 38,713,409 145,949,730 15,719,059 61,760,318 364,473,854 587,902,961 42,527,612 4,207,813 32,871,631 249,1 16,339 328,723,395 259,179,566 Increases Transfers In Decreases (Out) $ 91,652 $ 689,339 2,040,475 29,961,859 _ 32,783,325 2,205,163 59,465 5,553,606 33,216,951 41,035,185 - 323,170 11,391 (34,776) 4,749 (5,408,463) 16,140 (5,120,069) 2,31 1,331 4,627,960 1,426,799 1,489,654 2,203,616 6,939,291 5,120,069 3,584,279 680,669 5,829,522 2,1 18,787 18,300,638 2,463,177 28,395,108 4,581,964 12,640,077 Ending Balance $ 8,868,015 2,852,047 16,893,521 37,746,942 66,360,525 149,581,692 15,778,524 66,492,247 395,266,461 627,1 18,924 46,1 1 1,891 4,888,482 36,582,366 264,953,800 - 352,536,539 2,357,327 5,120,069 $ 297,892,975 $ 45,423,402 $ 2,373,467 $ 274,582,385 - $ 340,942,910 56 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Housing Authority Capital assets being depreciated: Equipment Total capital assets being depreciated Less accumulated depreciation Equipment Total accumulated depreciation Total capital assets being depreciated, net Housing Authority capital assets, net E-911 Assets: Capital assets being depreciated: Equipment Total capital assets being depreciated Less accumulated depreciation Equipment Total accumulated depreciation Total capital assets being depreciated, net E-911 capital assets, net Beginning Balance Increases Transfers In Decreases (Out) $ 25,182 $ 1,324 $ 25,182 1,324 17,28.5 1,349 17,285 7,897 1,349 (25) $ 7,897 $ (25) $ $ 5,177,317 $ 5,177,317 1,479,119 1,479,119 3,698,198 $ 3,698,198 $ 463,562 463,562 (463,562) - $ Ending Balance $ 26,506 26,506 18,634 18,634 7,872 - $ 7,872 - $ (463,562) $ $ 5,177,317 5,177,317 1,942,681 1,942,681 3,234,636 $ 3,234,636 57 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Depreciation expense was charged to functions/programs of the primary 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: $ 2,195,679 2,808,001 18,768,805 22,g82 10,166 474,249 4,115,324 $ 28,395,106 1,349 463,562 $ 464,911 The County is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; and errors or omissions. These activities are accounted for in the Insurance Fund, an internal service fund. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Insurance coverages have not been significantly reduced from prior years and settlements have not exceeded insurance coverage in the past three years. The County manages risks of loss through a combination of commercial insurance, participation in a public entity risk pool, (See Note 1) and self-insurance. These activities are accounted for in the Insurance Fund, an internal service fund. The County provides health, dental and vision insurance benefits to employees, which are funded by employee and employer contributions. These activities are accounted for in the Health Insurance Fund, an internal service fiend. Workers' Compensation coverage is partially self -insured, with insurance coverage of a $750,000 self -insured retention. Estimated liabilities for claims made and claims incurred but not reported (1BNR) at year-end are shown as accrued liabilities in the fund. These estimates are based upon a third -party administrator's review of claims and actuarial projections from historical claims data. Changes in the balances of claims liabilities during the current and prior years are as follows: Unpaid Claims - Beginning Incurred Claims (Includes IBNR's) Claims Paid Unpaid Claims - Ending 2014 $ 1,480,885 1,462,569 (1,324,386) $ 1,619,068 2015 $ 1,619,068 1,673,623 (1,672,947) $ 1,619,744 58 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 The Insurance Internal Service Fund provides protection against losses involving County property, equipment, and liability. Reserves within the fund support higher deductible or self -insured retention level against loss. Payments to CAPP for coverage under the insurance pool are shown as expenses in the Insurance Internal Service Fund. Estimated liabilities under the $125,000 self -insured retention for claims made and claims incurred but not reported (IBNR) at year-end are shown as accrued liabilities in the fund. These estimates are based upon CAPP's claim administrator's review of claims and actuarial projection from historical claims data. Changes in the balances of claims liabilities under the S125,000 self -insured retention during current and prior years are as follows: 2014 2015 Unpaid Claims - Beginning $ 212,076 $ 305,548 Incurred Claims (Includes IBNR's) 621,841 759,824 Claims Paid (528,369) (671,898) Unpaid Claims - Ending $ 305,548 $ 393,474 The Health Insurance Internal Service Fund covers the county's dental and vision reimbursement plan. The plan is not an insurance program, but rather an employee reimbursement plan that closes out each year on December 31, for services received on or before that date. No outstanding claims or incurred but not reported liabilities exist for year-end. In addition the Health Insurance Internal Service Fund as of January 1, 2006, covers the county's health insurance program. The plan is a self funded employee health benefit plan with a specific deductible amount of $100,000 per individual, and an aggregate excess loss insurance policy that has both a monthly attachment point and an annual cumulative attachment limit with a terminal attachment point. Attachment points are calculated based upon enrollment. Changes in the balance of the claims liability during the current year are as follows: Unpaid Claims - Incurred Claims Claims Paid Unpaid Claims - Note 8 - Long -Term Debt: Beginning Ending 2014 $ 2,547,177 12,276,996 (11,991,182) $ 2,832,991 2015 $ 2,832,991 12,230,594 (12,181,791) $ 2,881,794 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 $347,493,098 at December 31, 2015. 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, 2015 totaled $3,225,260. 59 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2015, was as follows, the balances, additions and reductions are listed by the funds where the liability is accrued and liquidated. Compensated absences General Fund Public Works Social Services Public Health Human Services Total governmental Beginning Balance $ 2,024,591 670,018 901,263 227,050 181,492 Additions $ 313,579 86,915 61,585 12,873 46,988 $ 4,004,414 $ 521,940 Note 9 - Weld County Retirement Plan: A. Summary of Significant Accounting Policies Reductions $ 94,302 35,390 58,180 8,259 37,339 Ending Due Within Balance One Year $ 2,243,868 721,543 904,668 231,664 191,141 $ 117,134 46,969 37,433 4,640 39,268 $ 233,470 $ 4,292,884 $ 245,444 Reporting Entity The Plan is included in the reporting entity of the County as a fiduciary fund in the Comprehensive Annual Financial Report. Basis of Accounting The Plan uses 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. Cash & Cash Equivalents The Colorado Public Deposit Protection Act (PDPA) required 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, 2015, the County had cash and cash equivalents of $2,124,215 collateralized with securities held by the financial institutions' agents but not in the County name. Investments investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. The securities that are not traded on national/international exchanges are valued at market value provided by investment managers. 60 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 GASS NO. 40 Disclosures The Weld County Retirement Plan adopted GASB Statement No. 40, Deposit and Investment Risk Disclosures - an amendment of GASB Statement No. 3, for the year ended December 31, 2007. Statement No. 40 establishes additional disclosure requirements addressing common deposits and investment risks related to credit risk, concentration of credit risk, interest rate risk, and foreign currency risk. As an element of interest rate risk, this statement requires certain disclosures of investments that have fair values that are highly sensitive to changes in interest rates. Deposit and investment policies related to the risks identified in this statement also are required to be disclosed. Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could differ from these estimates. Actuarially determined future benefit payments require the use of significant estimates. The Plan believes that the techniques and assumptions used in establishing these estimates are appropriate. B. Plan Description The Weld County Retirement Plan (Plan), a component unit of Weld County, is a single employer defined benefit pension plan administered by a five -member retirement board. The decision that the Plan is a component unit of Weld County was made by applying the criteria set forth in accounting principles generally accepted in the United States of America (GAAP). The basic criteria for this decision is that Weld County and its elected officials are accountable for the Plan. Two board members are elected by the Weld County employees, two are outside citizens appointed by the Board of County Commissioners and the other member is the Weld County Treasurer. The Plan provides retirement, disability, and death benefits to plan members and beneficiaries. All full-time employees, except officers and employees of the Health Department, are required to participate in the Plan. Cost -of -living adjustments are provided to members and beneficiaries at the discretion of the Retirement Board. The Board of County Commissioners and the Retirement Board maintain the authority to establish and amend benefit provisions of the Plan. Membership of the Plan consisted of the following at January 1, 2015 and 2014, the dates of the latest actuarial valuations: 2014 2015 Retirees and beneficiaries currently receiving benefits Terminated employees entitled to benefits but not yet receiving them Active plan memebers Total Vested Members Nonvested $ 567 $ 568 129 133 655 656 1,351 1,357 498 429 $ 1,849 $ 1,786 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 C. Contributions The contribution requirements of plan members and the County are established and maintained by the Board of County Commissioners. Plan members from 1/1/2015 to 12/31/2015 and 1/1/2014 to 12/31/2014 were required to contribute 10.75%, of their annual covered payroll. The County is required to contribute at an actuarially determined rate, which was 10.75% from 1/12015 to 12/31/2015 and 1/1/2014 to 12/31/2014, Administrative costs of the Plan are primarily financed and recorded through the County's General Fund. Administrative costs financed through the Plan's earnings in prior years are being reimbursed by the County's General Fund and recorded as reimbursement of prior year expenditures. D. Benefits Provided All full time employees are eligible to participate in the Plan. Benefits vest after completing five years of credited service. Vested employees may retire with a reduced benefit after age 55 with five years of Credited Service. For Tier 1). Full benefits are also available after age 55 when age plus service total at least 75 for Tier 1 and with 30 years of credited service for Tier2. The monthly benefit is determined as follows: Tier 1 2.75% of Average Monthly Compensation times Credited Service Payable as a 10year certain life annuity Tier 2 2.0% of Average Monthly Compensation times Credited Service payable as a life annuity Tier 3 1.9% of each year's compensation, adjusted every March 1 st for actual Investment performance, payable as a life annuity Maximum Benefit* $25 per year of credited service Maximum Benefit* $2.5% of the 12 highest consecutive months, with in the last 120 months * Only applies to Tiers 1 and 2 Unreduced benefits are provided at age 65 (age 62 with 8 years of credited service for Tier 1). Full benefits are also available after age 55 when age plus credited service total at least 75 for Tier 1 and with 30 years of credited service for Tier 2. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 E. Pension Liability The components of the net pension liability of the Plan at December 31, 2014 were as follows: Total Pension Liability Plan fiduciary net position County's net pension liability Plan fiduciary net position as a percentage of the total pension liability Covered employee payroll County's net pension liability as a percentage of employee covered payroll $ 232,337,977 185,469,545 46,868,432 79.8 % 61,704,127 76.0 % Actuarial assumptions: The total pension liability as of December 31, 2014 was determined by an actuarial valuation's of January 1, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary Increases Investment Rate of Return Net of investment and administrative fees 2.8% 53 - 8.5% 8.00% Mortality rates were based on the RP -2000 Mortality Table blended 30% Blue Collar, 70% White Collar for pre - retirement and RP -2000 Mortality Table for annuitants for post retirement, for Males and Females, as appropriate, both projected using Scale AA from 2000. The long-term expected rate of return on pension plan investments was determined using a building-block method which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) arc developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of December 31, 2014 are summarized in the following table: Public Equity Private Equity Hedge fund of funds Private equity real estate Fixed Income Total Long -Term Expected Target Allocation Real Rate of Return 50 - 60% 0-10% 0-10% 5-15% 25 - 35% 100% 5,48% 8.68% 3,02% 1.82% 0.70% 8.00% COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Rate of return: For the year ended December 31, 2014, the annual money -weighted rate of return on pension plan investments, net of pension plan investment expense, was 7,37%, The money- weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Discount rate: The discount rate used to measure the total pension liability was 8.00%. The projection of cash flows used to determine the discount rate assumed plan member contributions will be made at the current contribution rate and that the Plan contributions will be made at rates equal to the member contribution rates. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the net pension liability to changes in the discount rate: The following presents the net pension liability of the Plan, calculated using the discount rate of 8.0O%, as well as what the Plan's net pension liability would be if it were calculated using a discount rate that is 1- percentage -point lower (7.00%) or 1 -percentage-point higher (9.00%) than the current rate: Current 1(.1/0 increase Discount Rate 1% Decrease (9.0%) (8.0%) (7.0%) Net Pension Liability $ 24,639,842 $ 46,868,432 $ 73,701,253 For the year ended December 31, 2015 the County of Weld recognized pension expense of $4,304,042. At December 31, 2015, the County of Weld reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:. Deferred Deferred Outflows Inflows Difference Between Expected and actual experience Change Of Assumptions Net difference between projected and actual earning on pension investments Contributions made subsequent to the measurement date Total - $ 187,789 601,503 58,861,621 $ 59,463,124 $ 187,789 $58,861,621 reported as deferred outflows of resources related to pension, resulting from contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as follows: 2015 2016 2017 2018 $ 80,683 80,683 80,683 90,982 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 F. Investments and Certain Risk Factors There are many factors that can affect the value of investments. Some, such as custodial risk, concentration of credit risk and foreign currency risk may affect both equity and fixed income securities. Equity securities respond to such factors as economic conditions, individual company earnings performance, and market liquidity, while fixed income securities are particularly sensitive to credit risks and changes in interest rates. The Retirement Board, which is responsible for oversight of the Plan, has established investment policies (which does not include a formal policy that limits maturities for fixed income investments to limit interest rate risks) to provide the basis for the management of a prudent investment program appropriate to the particular fund types. The policy addresses investment objectives, responsibilities, asset allocation standards. All investments are part of mutual funds as listed below and therefore are risks. strategy, investment guidelines and review not considered to be exposed to custodial Investments, at fair value, were as follows at December 31, 2015 and 2014: 2015 2014 Domestic Equity International Equity Hedger Fund Fixed income U.S. Property Fund Fund of Funds Money Market Fund $ 68,482,921 37,777,351 10,500,159 29,605,900 47,248,358 38,538,184 $ 232,152,873 $ 76,593,945 23,965,424 9,104,469 42,083,165 21,455,308 480 10,475,678 $183,678,469 Foreign currency risk is defined as any deposits or investments that are denominated foreign currencies, which bear a potential risk of loss arising from changes in currency exchange rates. The Plan has no direct holdings which give rise to foreign currency risk. However, some of the externally managed funds have investments which are denominated in foreign currencies. G. Plan Changes and Termination Provision The Retirement Board and the County Commissioners intend to continue the Plan indefinitely, however provisions in the Plan allow for changes, including termination of the Plan. Any changes to the Plan must be for the exclusive benefit of the eligible employees of Weld County and their beneficiaries. If the Plan is terminated, participants would stop earning additional benefits, contributions to the retirement fund would cease, and the investments in the retirement fund would be converted to cash and funds would be allocated to the affected participants of the Plan. First, members or their beneficiaries would receive the total of their accumulated contributions (including the accumulated value of the amount paid for purchased service credit, if any). Then, any remaining funds would be allocated on a pro -rata basis in accordance with the Plan document. Benefits may be paid in cash or nontransferable annuity contracts. No funds may be returned to the County unless all liabilities to members or their beneficiaries have been satisfied. The Retirement Board would determine how the benefits are to be paid. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 WELD COUNTY RETIREMENT PLAN SHEDULE OF CHANGES IN PLAN NET PENSION LIABILITY Total pension liability Service Cost Interest Change In Benefit Term Difference Between Expected and Actual Experience Change of Assumptions Benefit Payments, Including Refunds of Employee Contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - Employer Contributions - Employee Net Investment Income Benefit Payments, including refunds of employee contributions Administrative expenses Other Net Change in plan fiduciary net position Plan net position beginning Plan net position - ending (b) County's net position liability - ending (a) -(b) Plan fiduciary net position as a percentage of the total pension liability Covered Employee Payroll County's net pension liability as a percentage of covered payroll $ 6,710,973 17,727,585 (187,789) (13,593,270) $ 10,657,499 221,680,478 232,337,977 17,186,962 7,179,473 12,799,029 (13,593,270) (445,444) 23,126,750 162,342,795 185,469,545 46,868,432 79.8 % 61,704,127 76.0 % COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Note 10 - Blended Unit Pension Disclosure A. Defined Benefit Pension Plan Summary of Significant Accounting Policies County of Weld employees of the Weld County Department of Public Health and Environment participate in the Local Government Division Trust Fund (LGDTF), a cost -sharing multiple -employer defined benefit pension fund administered by the Public Employees' Retirement Association of Colorado ("PERA”). The net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position of the LGDTF have been determined using the economic resources measurement focus and the accrual basis of accounting. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. General Information about the Pension Plan Eligible employees of the County of Weld are provided with pensions through the Local Government Division Trust Fund (LGDTF)—a cost -sharing multiple -employer defined benefit pension plan administered by PERA. Plan benefits are specified in Title 24, Article 51 of the Colorado Revised Statutes (C.R.S.), administrative rules set forth at 8 C.C.R. 1502-1, and applicable provisions of the federal Internal Revenue Code. Colorado State law provisions may be amended from time to time by the Colorado General Assembly. PERA issues a publicly available comprehensive annual financial report that can be obtained at www.copera.org/investments/pera-financial-reports . PERA provides retirement, disability, and survivor benefits. Retirement benefits are determined by the amount of service credit earned and/or purchased, highest average salary, the benefit structure(s) under which the member retires, the benefit option selected at retirement, and age at retirement. Retirement eligibility is specified in tables set forth at C.R.S. § 24-51-602, 604, 1713, and 1714. The lifetime retirement benefit for all eligible retiring employees under the PERA Benefit Structure is the greater of the: • Highest average salary multiplied by 2.5 percent and then multiplied by years of service credit • The value of the retiring employee's member contribution account plus a 100 percent match on eligible amounts as of the retirement date. This amount is then annuitized into a monthly benefit based on life expectancy and other actuarial factors. The lifetime retirement benefit for all eligible retiring employees under the Denver Public Schools (DPS) Benefit Structure is the greater of the: • Highest average salary multiplied by 2.5 percent and then multiplied by years of service credit • $15 times the first 10 years of service credit plus $20 times service credit over 10 years plus a monthly amount equal to the annuitized member contribution account balance based on life expectancy and other actuarial factors. 67 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 In all cases the service retirement benefit is limited to 100 percent of highest average salary and also cannot exceed the maximum benefit allowed by federal Internal Revenue Code. Members may elect to withdraw their member contribution accounts upon termination of employment with all PERA employers; waiving rights to any lifetime retirement benefits earned. If eligible, the member may receive a match of either 50 percent or 100 percent on eligible amounts depending on when contributions were remitted to PERA, the date employment was terminated, whether 5 years of service credit has been obtained and the benefit structure under which contributions were made. Benefit recipients who elect to receive a lifetime retirement benefit are generally eligible to receive post -retirement cost - of -living adjustments (COLAs), referred to as annual increases in the C.R.S. Benefit recipients under the PERA benefit structure who began eligible employment before January 1, 2007 and all benefit recipients of the DPS benefit structure receive an annual increase of 2 percent, unless PERA has a negative investment year, in which case the annual increase for the next three years is the lesser of 2 percent or the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI -W) for the prior calendar year. Benefit recipients under the PERA benefit structure who began eligible employment after January 1, 2007 receive an annual increase of the lesser of 2 percent or the average CPI -W for the prior calendar year, not to exceed 10 percent of PERA's Annual Increase Reserve for the LGDTF. Disability benefits are available for eligible employees once they reach five years of earned service credit and are determined to meet the definition of disability. The disability benefit amount is based on the retirement benefit formula shown above considering a minimum 20 years of service credit, if deemed disabled. Survivor benefits are determined by several factors, which include the amount of earned service credit, highest average salary of the deceased, the benefit structure(s) under which service credit was obtained, and the qualified survivor(s) who will receive the benefits. Contributions. Eligible employees and County of Weld are required to contribute to the LGDTF at a rate set by Colorado statute. The contribution requirements are established under C.R.S. § 24-51-401, et seq. Eligible employees are required to contribute S percent of their PERA-includable salary. The employer contribution requirements are summarized in the table below: Rate Employer Contribution Rate * 10.0 % Amount of Employer Contributions apportioned to the Health Care Trust Fund as specified in C.R.S. 24-51-208(1)(f) * (1.0)% Amount Apportioned to theLGDTF * 9.0 % Amortization Equalization Disbursement (AED) as specified in C.R.S. 24-51-411 * 2.2 % Supplemental Amortization Equalization Disbursement (SAED) as specified in C.R.S. 24-51-411 * 1.5 % Total Employer Contribution Rate to the LGDTF 1 12.7 % * Rates Expressed as percentage of salary per C.R.S 24-51-101 (42) Employer contributions are recognized by the LGDTF in the period in which the compensation becomes payable to the member and the County of Weld is statutorily committed to pay the contributions to the LGDTF. Employer contributions recognized by the LGDTF from County of Weld were 5623,865 for the year ended December 31, 2015 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Pension Liabilities, Expense, and Related Deferred Out Flows and Inflows of Resources At December 31, 2015, the County of Weld reported a liability of $8,047,920 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2013. Standard update procedures were used to roll forward the total pension liability to December 31, 2014. The County of Weld proportion of the net pension liability was based on County of Weld contributions to the LGDTF for the calendar year 2014 relative to the total contributions of participating employers to the LGDTF. At December 31, 2014, the County of Weld proportion was 0.897 percent, which was approximately its proportion measured as of December 31, 2013. For the year ended December 31, 2015, the County of Weld recognized pension expense of $623,865. At December 31, 2015, the County of Weld reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of of Resources Resources Difference Between Expected and Actual Experience Change Of Assumptions or other inputs Net Difference between projected and actual earnings on pension investments Changes in proportion and difference s between contributions recognized and proportionate share of contributions Contributions subsequent to the measurement date Total 436,440 733,965 $ 1,170,405 $ 1,616 $733,965 reported as deferred outflows of resources related to pensions, resulting from contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows. 2016 2017 2018 2019 Thereafter $ 107,837 108,771 109,112 109,104 $ 434,824 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Pension Liabilities, Expense, and Related Deferred Out Flows and Inflows of Resources Actuarial assumptions. The total pension liability in the December 31, 2013 actuarial valuation was determined using the following actuarial assumptions and other inputs: Price Inflation Real Wage Growth Wage Inflation Salary increases, including wage inflation Long-term investment Rate of Return, net of pension plan investment expenses, including price inflation Future Post -retirement benefit increases: Pera Benefit Structure hired prior to 1/1/2007 (automatic) PERA Benefit Structure hired after 12/31/2006(ad hoc, substantively automatic) 2.80% 1.10% 3.980% 3.9-10.85% 7.50% 2.0% Financed by the Annual Increase Reserve Mortality rates were based on the RP -2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on a projection of Scale AA to 2020 with Males set back 1 year, and Females set back 2 years. The actuarial assumptions used in the December 31, 2013 valuation were based on the results of an actuarial experience study for the period January 1, 2008 through December 31, 2011, adopted by PERA's Board on November 13, 2012, and an economic assumption study, adopted by PERA's Board on November 15, 2013 and January 17, 2014. The LGDTF's long-term expected rate of return on pension plan investments was determined using a log -normal distribution analysis in which best estimate ranges of expected future real rates of return (expected return, net of investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. As of the most recent analysis of the long-term expected rate of return, presented to the PERA Board on November 15, 2013, the target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: U.S. Equity - Large Cap U.S. Equity - Small Cap Non U.S. Equity - Developed Non U.S. Equity - Emerging Core Fixed Income High Yield Long Duration Government Credit Emerging Markets Bonds Real Estate Private Equity Total 10 Years Expected Geometric Target Allocation Real Rate of Return 26.9 4.4 22.1 6.2 24.1 1.5 0.5 0.4 7.0 7.0 100.0 5.0 5.2 5.3 6.8 1.0 2.6 1.6 3.0 5.1 7.2 * In setting the long-term expected rate of return, projections employed to model future returns provide a range of expected long-term returns that, including expected inflation, ultimately support a long-term expected rate of return assumption of 7.50%. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Pension Liabilities, Expense, and Related Deferred Out Flows and Inflows of Resources Discount rate. The discount rate used to measure the total pension liability was 7.50 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the fixed statutory rates specified in law, including current and future AED and SAED, until the Actuarial Value Funding Ratio reaches 103 percent, at which point, the AED and SAED will each drop 0.50 percent every year until they are zero. Based on those assumptions, the LGDTF's fiduciary net position was projected to be available to make all projected future benefit payments of current members. Therefore, the long -torn expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The discount rate determination does not use the Municipal Bond Index Rate. There was no change in the discount rate from the prior measurement date. Sensitivity of the County of Weld proportionate share of the net pension liability to changes in the discount rate. The following presents the proportionate share of the net pension liability calculated using the discount rate of 7.50 percent, as well as what the proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (6.50 percent) or 1 -percentage -point higher (8.50 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.5%) (7.5%) (8.5%) Proportionate share of net pension liability $ 13,143,137 $ 8,047,920 $ 3,800,002 Pension plan fiduciary net position. Detailed information about the LODTF's fiduciary net position is available in PERA's comprehensive annual financial report which can be obtained at www.copera.org/investments/pera-financial- reports. Payables to the pension plan. County of Weld has none as of December 31, 2015. B. Defined Contribution Pension Plans Voluntary Investment Program Plan Description - Employees of the County of Weld that are also members of the LGDTF may voluntarily contribute to the Voluntary Investment Program, an Internal Revenue Code Section 401(k) defined contribution plan administered by PERA. Tide 24, Article 51, Part 14 of the C.R.S., as amended, assigns the authority to establish the Plan provisions to the PERA Board of Trustees. PERA issues a publicly available comprehensive annual financial report for the Program. That report can be obtained at www.copera.org/investments/pera-fmancials-reports. Funding Policy - The Voluntary Investment Program is funded by voluntary member contributions up to the maximum limits set by the Internal Revenue Service, as established under Title 24, Article 51, Section 1402 of the C.R.S., as amended. In addition, the County of Weld has agreed to match employee contributions up to XX percent of covered salary as determined by the Internal Revenue Service. Employees are immediately vested in their own contributions, employer contributions and investment earnings. For the year ended December 31, 2015, program members contributed $0.00 and County of Weld recognized pension expense and a liability of $0.00 and $0.00, respectively, for the Voluntary Investment Program. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 C. Other Post -Employment Benefits Health Care Trust Fund Plan Description — The County of Weld contributes to the Health Care Trust Fund ("HCTF"), a cost sharing multiple employer healthcare trust administered by PERA. The HCTF benefit provides a health care premium subsidy and health care programs (known as PERACare) to PERA participating benefit recipients and their eligible beneficiaries. Title 24, Article 51, Part 12 of the C.R.S., as amended, establishes the HCTF and sets forth a framework that grants authority to the PERA Board to contract, self -insure and authorize disbursements necessary in order to carry out the purposes of the PERACare program, including the administration of health care subsidies. PERA issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information for the HCTF. That report can be obtained at www.eopera.orglinvestrents/pera-financials-reports Funding Policy — The County of Weld is required to contribute at a rate of 1.02 percent of PERA-includable salary for all PERA members as set by statute. No member contributions are required. The contribution requirements for the County of Weld are established under Title 24, Article 51, Part 4 of the C.R.S., as amended. The apportionment of the contributions to the HCTF is established under Title 24, Article 51, Section 208(1)(f) of the C.R.S., as amended. For the years ending December 31, 2015, and December 31, 2014 the County of Weld contributions to the HCTF were $50,185, and $48,695, respectively, equal to their required contributions for each year. The County of Weld has recognized the county's PERA LGDTF proportional net pension liability of $8,047,920 as a restricted amount in the Public Health Fund at year end on December 31, 2015. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Note H - 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. 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 2015, the county contributed $0 to the plan. Plan members receiving benefits contributed $65,382, or approximately 100% percent of the total premiums, through their required contribution ranging from $129 to S157 per month for retiree -only coverage and between S245 to S338 for retiree and spouse coverage. Each of these rates saw no increase in 2015. 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. 73 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 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 33 members in 2015 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: Level Dollar Amortization Calculation on Annual OPEB cost under Projected Unit Credit Method on December 31, 2015 Anual Required Contribution (ARC) Adjustment to the ARC Interest Earned on Net OPEB Asset 2015 Net Annual OPEB Cost County Contributions Increase in net OPEB obligation (asset) Beginning OPEB obligation (asset) Ending OPEB Obligation (asset) 399,487 (595,651) (11,713) (207,877) (207,877) (652,454) $ (860,331) There is no unfunded actuarial accrued liability (UAAL) at the end of the year. A surplus of $860,331 exists. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Covered Participants as of January 1, 2016 Retired Employees Spouses of Retired Employees Three -Year Trend Information: Fiscal Year End December 31, 2013 December 31, 2014 December 31, 2015 Annual OPEB Cost $ (285,570) $ (285,570) $ (207,877) 29 4 33 Percentage of Annual OPEB Cost Contributed 100.0 % 100.0 % 100.0 % Net OPEB Asset $ (652,454) $ (652,454) $ (860,331) 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, 2015 was $1,026,718, there were $1,887,049 in assets on December 31, 2015 for a finding excess of ($860,331). 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, 2012, was as follows: Actuarial Accrued Liability (AAL) Actuarial value of plan assets Funded Excess Funded ratio (actuarial value of plan assets/AAL) 1,026,718 1,887,049 (860,331) 183.79 % No active employees are covered by the plan. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress presents multiyear trend information about whether the actuarial value of assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The actuarial calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation and on the pattern of sharing of costs between the employer and members to that point and reflect a long-term perspective. The Weld County OPEB Plan Assets are accounted for in the Weld County OPEB Plan Trust Fund. An 1RC Section 115 Trust has been established for the Weld County OPEB Plan Trust. COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Note 12 - Commitments and Contingencies: Commitments As of December 31, 2015 there were encumbrances carried forward to 2016 of $748,657 in the General fund, consisting of $227,600 for general purchases, $387,286 consulting services for flood recovery and $133,771 for County wide communication and general government computer system maintenance and support. The Public Works fund carried forward $2,206,202 for road construction projects which includes $1,051,249 specifically for the Weld County Parkway. In the capital expenditures fund year-end projects under construction included $388,086 for building improvements and $74,320 for remodeling projects for the Weld Plaza buildings. Note 13 - 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, 2015 Assets Liabilities Net Position Revenues Expenses $ 423,290 49,174 374,116 387,486 392,034 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. 76 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Note 14 - Non -Cash Activity in Social Services Fund Schedule of EBT Authorizations, Warrant Expenditures and Total Expenditures for the Year Ended December 31, 2015 A B C D E Program County EBT Authorizations County Share of Authorizations Total Refunds and Expenditures by County Warrant or Accrual County EBT Authorizations plus Expenditures by County Warrant (Col. A + Col. C) Total Expenditures Col. B + Col. C Old Age Pension 4,178,630 6,757 108,808 4,287,438 115,565 Low -Income Energy Assistance Program 1,493,296 - "119,147 1,612,443 "119,147 Temporary Assistance for Needy Families 4,035,937 660,650 2,154,601 6,190,538 2,815,251 Administration 9,276 1,855 10,162,886 10,172,162 10,164,741 Trails/Child Welfare 6,868,201 1,371,729 13,840,639 20,708,840 15,212,368 Core Services 1,680,145 280,110 742,305 2,422,450 1,022,415 Aid to the Needy Disabled 939,319 154,560 (15,802) 923,517 138,758 1V -D Administration - - 3,163,939 3,163,939 3,163,939 CHATS/Child Care 4,018,239 434,291 518,740 4,536,979 953,031 General Assistance - - 64,652 64,652 64,652 Subtotal 23,223,043 2,909,952 30,859,915 54,082,958 33,769,867 Food Assistance 38,261,547 - (251) 38,261,296 (251) Grand Total 61,484,590 2,909,952 30,859,664 92,344,254 33,769,616 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. 77 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Note 15 - Recent Pronouncements: In February 2015 the Governmental Accounting Standards Board issued GASB Statement No.72 Fair Value Measurement and Application. This statement provides final guidance on the accounting and financial reporting issues related to fair value measurements primary applicable to investments made by state and local governments. The guidance: 1) defines fair value and describes how it should be measured; 2) identifies the assets and liabilities that should be measured at fair value; and 3) identifies the fair value information that should be disclosed in the notes to the financial statements. GASB Statement No.72 is effective for years beginning after June 15, 2015 with effective changes made to comply with the statement reported as adjustments to prior periods. The effect that the adaption of GASB No. 72 will have on the County's financial statements has not been determined Note 16 - Restatement Of Net Position As of January 1, 2O15 the County adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement date. The implementation of these standards require governments to calculate and report the costs and obligations associated with the pensions in their financial statements, including additional note disclosures and required supplementary information. Beginning net position was restated to retroactively report the beginning net pension liability and deferred outflows of resources related to contributions made after the measurement date. The adjustment to the beginning balance of net position is as follows: Net Position - December 31, 2014, as previously reported Restatement due to implementation of GASB 68 Net Position - December 31, 2014 as restated $ 474,407,154 44,583,958 $ 429,823,196 78 Required Supplementary Information Other Than MD&A INFORMATION COUNTY OF WELD STATE OF COLORADO SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS Year Ended December 31, 2015 December 31, 2014 Total pension liability: Service Cost Interest Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position: Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) County's net position liability - ending (a) - (b) 6,710,973 17,727, 585 (187,789) (13,593,270) 10,657,499 221,680,478 232,3.37,977 17,186,962 7,179,473 12,799,029 (13,593,270) (445,444) 23,126,750 162,342,795 185,469,545 46,868,432 Plan fiduciary net position as a percentage of the total pension liability Covered employee payroll County's net pension liability as a percentage of covered employee payroll 79,83% 61,704,127 75,96% Until a frill 10 -year trend is complied, the County will present information for those years for which the information is available. COUNTY OE WELD STATE OF COLORADO SCHEDULE OF EMPLOYER CONTRIBUTIONS Year Ended December 31, 2015 Year Ended December 31 Actuary Determined Contribution Contribution in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered Payroll Contributions as a % of Covered Payroll 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 S 4,236,858.0() 4,408,097.00 4,928,519.00 7,087,011.00 5,417,362.00 6,013,818.00 6,138,685.00 6,578,458.00 5,798,248.00 4,609,558.00 $ 3,205,422.00 3,804,640.00 4,184,885.00 4,664,860.00 4,885,660.00 4,906,758.00 6,970,039.00 11,235,009.00 17,186,962.00 58,861,621 .00 S (1,031,436.00) (603,457.00) (743,634.00) (2,422,15 1.00) (531,702.00) (1,107,060.00) 831,354.00 4,656,551.00 11,388,714.00 54,252,063.00 $ 41,529,717.00 44,210,417.00 49,967,777.00 53,988,779.00 53,484,492.00 53,415,982.00 55,871,701.00 55,933,201.00 61,704,127.00 68,958,839.00 7.72% 8.61% 8.38% 8.64% 9.13% 9.19% 12.48% 20.09% 27.85°A 85.36% 80 COUNTY OF WELD STATE OF COLORADO SCHEDULE OF THE COUNTYS PROPORTIONATE SHARE OF NET PENSION LIABILTY - PERA Year Ended December 31, 2015 Year Ended December 31 Cumulative Cumulative Portion of Net Proportionate % Of Covered Pension Liability Share Covered Payroll Payroll Plan Net Position as a % of Net Pension Liability 2015 0.897% $ 8,047,920 $ 5,139,062 156.60% 80.72% Until a full 10 -year trend is complied, the County will present information for those years for which the information is available. COUNTY OF WELD STATE OF COLORADO SCHEDULE OF EMPLOYER CONTRIBUTIONS - PERA Year Ended December 31, 2015 Statutorily Required Year Ended December 31 Contributions 2015 623,684.00 S Contributions Made Covered Payroll % Of Covered Payroll 623,684.00 $ 5,139,062.00 12.14% Until a full 10 -year trend is complied, the County will present information for those years for which the information is available. 82 COUNTY OF WELD STATE OF COLORADO Schedule of Funding Progress - Other Post Employment Benefits Year Ended December 31, 2015 Schedule of Funding Progress - Other Post Employment benefits Excess Actuarial Actuarial Acturial Funding Funded Ratio Valuation Value of Accrued AAL (UAAL) (a/b) Date Assets Liability (b -a) (a) (AAL) Entry Age (b) 1/1/12 $ 2,387,693 $ 1,735,238 $ (652,455) 137.6 % 1/1/13 $ 2,387,693 $ 1,735,238 $ (652,455) 137.6 % 1/1/14 $ 2,387,693 $ 1,735,238 $ (652,455) 137.6 % 1/1/15 $ 2,387,693 $ 1,735,238 $ (652,455) 137.6 % 1/1/16 $ 1,887,049 $ 1,026,718 $ (860,331) 183.8 % Schedule of Employer Contributions — Other Post Employment Benefits Annual Year Ended Required Actual Percentage December 31 OPEB Cost Contribution Contributed 2013 $ (285,570) $ (285,570) 100.0 % 2014 (285,570) (285,570) 100.0 % 2015 $ (207,877) $ (207,877) 100.0 % ''1>Required contribution at beginning of year. COUNTY OF WELD STATE OF COLORADO Required Supplementary Infonnation Modified Approach for Infrastructure Assets Weld County prepares an annual gravel road plan. In doing this each of the sections of gravel roads has been evaluated by supervisors. They use the State guidelines as out lined in Section 43 -2 -120(5)(a -b), C,R.S, 1973, which is stated below. Since gravel roads condition can change quickly based on weather conditions the road plan may have to be modified to take care of such problems. Therefore, an official road maintenance system is difficult to put in place. It is the County's policy to maintain the roads in fair or better condition. The County's gravel plan details the replacement and maintenance schedule required for the gravel roads, by segment, under ideal weather conditions based on traffic and location. The day to day conditions of the gravel roads is continually monitored by the County's Motor Grader division whose sole responsibility is to maintain the condition of the gravel roads, the following table details the condition assessment in total miles and percentage reported at the end of the last three fiscal periods. Condition Good Fair Poor Miles 1,787 368 64 2015 2014 2013 % of Total Miles % of Total Miles % of Total 80.5% 1,786 16.6% 372 2,9% 65 Comparison of Estimated -to -Actual Maintenance/Preservation Estimated Actual 2011 3,132,000 2,683,326 2012 3,132,000 3,696,246 2013 3,360,875 3,131,555 80.3% 16.7% 2,9% 2014 2,696,700 3,067,408 1,784 79.6% 383 17.1% 74 3,3% 2015 3,703,900 3,628,316 2016 3,784,840 Gravel Roads - Surface Condition Rating Criteria Section 43-2-120 (5)(a -b), C.R.S. 1973, gives the following guidelines pertaining to the condition criteria on gravel roads. Good Surface Condition $ There is adequate width for safe passage of large vehicles. $ Graded to a uniform cross-section, having a crown and ditches to provide good drainage. $ The surface is smooth with no washboards, rutting or soft areas; vehicles can safely travel at the posted speed limit. $ There is adequate gravel uniformly spread across the surface. $ During periods of wet weather, roads will support traffic. Fair Surface Conditions $ Adequate width for safe passage of cars and pickup trucks. $ Cross-section may vary; the crown is not consistent; ditches and drainage are not adequate. The surface has occasional washboards and ruts but irregularities do not interfere with safe vehicle operation at the speed limit, $ Gravel is present, but lacking in the wheel paths or in short stretches. $ During periods of wet weather, puddles develop; the road is slippery but will support normal traffic. Poor Surface Condition $ Two cars cannot safely pass. $ Cross-section varies. There is no crown or ditches, and water does not drain from the road. $ The surface has washboards, ruts, soft areas; vehicles must slow to less than the speed limit. $ Gravel is sparse or does not exist, $ During periods of wet weather, cars cannot safely travel. 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, 2015 Budgeted - GA AP Basis REVENUES Taxes: General property taxes Tobacco products Penalties & interest Total Taxes Licenses and Permits Liquor licenses Planning permits Building permits Electrical permits Total Licenses and Permits Intergovernmental: Federal grants Payment in lieu of taxes State grants Other governmental units Cities and towns Total Intergovernmental Charges for Service: Plan checking fees Charges for services Sale of supplies Parking Total Charges for Service Fines and Forfeitures: Property forfeitures/evidence Fines (drunk drivers) Total Fines and Forfeitures Miscellaneous: Miscellaneous Interest Rents from buildings Total Miscellaneous Original Final Actual Variance $ 104,762,514 $ 104,762,514 $ 102,632,802 $ (2,129,712) 200,000 200,000 293,150 93,150 60,796 60,796 104,962,514 104,962,514 102,986,748 (1,975,766) 7,000 410,000 1,850,000 600,000 7,000 560,000 2,450,000 990,000 8,290 526,762 2,252,491 928,496 1,290 (33,238) (197,509) (61,504) 2,867,000 4,007,000 3,716,039 (290,961) 2,000 3,718,604 521,263 283,540 260,000 2,000 3,787,604 521,263 283,540 723,012 371,372 4,467,802 690,569 314,320 463,012 369,372 680,198 169,306 30,780 4,525,407 4,854,407 6,567,075 1,712,668 800,000 6,646,805 120,500 21,000 850,000 7,166,759 120,500 21,000 7,588,305 8,158,259 172,500 172,500 172,500 172,500 2,294,641 1,100,000 533,023 3,341,641 1,100,000 1,433,023 $ 3,927,664 $ 5,874,664 802,768 6,500,452 134,834 27,281 7,465,335 432,845 280,294 713,139 5,138,955 1,001,054 1,573,382 (47,232) (666,307) 14,334 6,281 (692,924) 432,845 107,794 540,639 1,797,314 (98,946) 140,359 $ 7,713,391 $ 1,838,727 85 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, 2015 Budgeted - GAAP Basis REVENUES (CONTINUED) Fees: Fee account Treasurer's fees Cable fees Assessor's fees Total Fees Total Revenues EXPENDITURES General Government Office Of the Board County Attorney Public Trustee Planning and zoning Clerk to the Board County Clerk Elections and registrations Motor Vehicle County Treasurer County Assessor Maintenance of buildings/gounds Weld Plaza County Council District Attorney Juvenile Diversion Adult Diversion Victim Assistance Financial administration General accounting Purchasing Personnel Geographical Information Systems Computer Services Innovation & Technology Project Print and Supply Bright Futures Weld County Smart Energy Project Total General Government (CONTINUED) Original Final $ 10,096,400 40,000 52,000 40,000 10,228,400 $ 10,546,400 40,000 52,000 40,000 10,678,400 Actual $ 11,676,264 21,785 71,766 32,715 11,802,530 Variance $ 1,129,864 (18,215) 19,766 (7,285) 1,124,130 134,271,790 138,707,744 140,964,257 2,256,513 957,673 957,673 982,429 (24,756) 804,251 1,258,301 1,307,932 (49,631) - 3,500 3,228 272 1,700,842 1,704,042 1,666,737 37,305 359,722 378,722 381,862 (3,140) 941,485 956,485 905,642 50,843 965,952 965,952 671,606 294,346 2,544,008 2,624,008 2,486,540 137,468 1,016,736 1,021,136 916,242 104,894 2,938,130 3,084,130 2,968,237 115,893 6,065,174 6,065,174 5,715,254 349,920 640,000 734,866 (94,866) 48,299 48,299 14,022 34,277 5,285,833 5,335,833 5,138,879 196,954 211,402 303,402 298,435 4,967 73,538 73,538 65,185 8,353 720,059 723,059 1,424,354 (701,295) 355,872 355,872 337,057 18,815 767,178 829,553 848,936 (19,383) 265,927 266,927 264,241 2,686 1,161,378 1,245,378 1,143,356 102,022 212,882 216,882 162,487 54,395 5,524,456 5,996,456 5,273,336 723,120 1,000,000 110,000 23,104 86,896 370,246 394,246 360,573 33,673 - 199,690 29,680 170,010 1,290,605 1,290,605 1,290,605 $ 35,581,648 $ 37,048,863 $ 34,124,220 $ 2,924,643 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, 2015 Budgeted - GA AP Basis EXPENDITURES (CONTINUED) Public Safety Sheriff administration Crime control and investigation Criminal justice Task Force Regional Forensic Laboratory Communication Services Justice Services County Coroner Community Corrections Building Inspections Office Of Emergency Management Waste Water Animal Control Pest/weed Control Victim advocates Total Public Safety Public Works: General Engineering Extension Veterans Office Total Public Works Public Health and Welfare: Mental Health Developmentally Disabled Seniors Program Economic Development Total Public Health and Welfare Culture and Recreation: Missile Site Park Parks and Trails County Fair Total Culture and Recreation Original Final $ 2,157,878 10,565,796 25,644,832 121,557 359,329 6,975,054 836,927 920,496 2,943,060 1,326,473 328,110 10,000 308,698 918,538 164,823 $ 4,527,366 10,276,119 24,700,390 211,967 561,204 6,925,054 992,927 942,696 2,943,060 1,451,473 373,610 10,000 308,698 928,538 164,823 53,581,571 55,317,925 10,690,124 336,511 83,620 10,690,124 336,511 90,620 11,110,255 11,117,255 218,093 38,225 19,000 155,000 218,093 38,225 19,000 155,000 430,318 430,318 78,051 29,000 134,114 Actual $ 4,511,417 10,532,872 24,896,330 274,430 487,473 6,318,189 751,799 897,942 2,872,047 1,453,530 390,037 9,215 294,919 825,806 143,533 54,659,539 8,254,645 440,471 89,053 8,784,169 203,160 38,225 19,000 198,460 458,845 Variance $ 15,949 (256,753) (195,940) (62,463) 73,731 606,865 241,128 44,754 71,013 (2,057) (16,427) 785 13,779 102,732 21,290 658,386 2,435,479 (103,960) 1,567 2,333,086 14,933 (43,460) (28,527) 81,051 66,244 14,807 29,000 29,000 146,114 1,169,784 (1,023,670) $ 241,165 $ 256,165 $ 1,265,028 $ (1,008,863) 87 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, 2015 Budgeted - GAAP Basis EXPENDITURES (CONTINUED) Miscellaneous: Other Pension Contribution Building Rents Total Miscellaneous Capital Outlay: Capital Expenditures Total Expenditures Other Financing Sources (Use) Transfers - In: Non -Departmental Transfers - Out: Appropriation Grants -In -Aid Total Other Financing Source (uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year Original Final $ 4,065,275 $ 25,000,000 112,319 _ 29,177,594 4,745,275 25,000,000 112,319 29,857,594 3,978,185 2,868,035 Actual Variance $ 4,898,668 $ (153,393) 25,000,000 70,131 42,188 29,968,799 (1 1 1,205) 2,464,042 403,993 134,100,736 136,896,155 131,724,642 5,171,513 85,000 4,332,647 85,000 6,832,647 (4,247,647) (6,747,647) (4,076,593) 23,478,696 (4,936,058) 23,478,696 85,000 6,832,647 (6,747,647) 2,491,968 7,428,026 23,478,696 $ 19,402,103 $ 18,542,638 $ 25,970,664 $ 7,428,026 88 89 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, 2015 Budget - GAAP Basis REVENUES: Taxes: General property taxes Severance tax Specific ownership taxes Penalties & interest Total Taxes Licenses and Permits Moving Permits Intergovernmental: Grazing Act Payment in lieu of taxes Grants Motor Vehicle Registrations Highway user Tax fiord Total Intergovernmental Charges for Services: Charges for services Miscellaneous: Earnings on Deposits Special Assesment Royalties Miscellaneous Total Miscellaneous Fees: Fees Total Revenues Original Final Actual $ 16,500,000 $ 16,500,000 $ 16,286,884 4,000,000 4,000,000 4,821,922 7,400,000 7,400,000 9,598,636 8,648 27,900,000 27,900,000 30,716,090 500,000 500,000 70,000 330,000 15,548,000 340,000 9,700,000 370,000 330,000 16,248,000 340,000 9,700,000 25,988,000 26,988,000 16,000,000 16,000,000 2,925,000 4,445,000 18,925,000 20,445,000 73,313,000 75,833,000 543,508 349,108 179,200 6,386,169 326,123 10,397,410 17,638,010 2,006,928 61,123 3,333 1 1,330,1 19 4,584,630 15,979,205 1,547,820 68,431,561 Variance $ (213,116) 821,922 2,198,636 8,648 2,816,090 43,508 (20,892) (150,800) (9,861,831) (13,877) 697,410 (9,349,990) 2,006,928 61,123 3,333 (4,669,881) 139,630 (4,465,795) 1,547,820 (7,401,439) 90 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, 2015 Budget - GAAP Basis EXPENDITURES Public Works Bridge Construction Maintenance of Condition Maintenance of Support Trucking Division Mining Division Administration Pavement Management Other Public Works Total Public Works Intergovernmental: Grants-in-aid to cities/towns Capital Expenditures Total Expenditures Net Change in Fund Balances Fund Balance at Beginning of Year Original Final 5,698,738 7,485,849 1,695,230 4,935,968 2,399,158 666,387 7,174,323 69,367,105 5,433,738 7,485,849 1,750,230 5,235,968 2,608,658 841,387 7,219,323 71,217,105 99,422,758 101,792,258 4,674,091 4,774,091 6,500 6,500 104,103,349 106,572,849 Actual 4,688,823 6,60 1,634 1,511,788 4,942,519 2,084,028 943,314 6,700,034 46,934,765 Variance 744,915 884,215 238,442 293,449 524,630 (101,927) 519,289 24,282,340 74,406,905 27,385,353 2,382,135 2,391,956 214,086 (207,586) 77,003,126 29,569,723 (30,790,349) (30,739,849) (8,571,565) 22,168,284 79,042,734 79,042,734 79,042,734 Fund Balance at End of Year $ 48,252,385 $ 48,302,885 $ 70,471,169 $ 22,168,284 91 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, 2015 Budget - GAAP Basis REVENUES Taxes: General property taxes Penalties & interest Total Taxes Intergovernmental: Welfare Total Revenues EXPENDITURES Public Health and Welfare: Administration Administrative - IV -D Food Stamps Other Programs General Assistance TANF AND - State Child Welfare Day Care (CONTINUED) Original Final Actual Variance $ 8,438,837 $ 8,438,837 $ 8,292,608 $ (146,229) - - 5,411 5,411 8,438,837 8,438,837 23,902,000 26,920,000 32,340,837 35,358,837 8,746,700 9,936,700 3,1 1 1,900 3,111,900 579,200 579,200 3,912,600 3,912,600 130,000 130,000 12,740,000 15,090,000 984,500 984,500 8,298,019 (140,818) 24,810,497 (2,109,503) 33,108,516 (2,250,321) 9,415,149 3,163,939 (251) 740,163 64,652 2,815,251 138,758 15,212,368 953,031 521,551 (52,039) 251 (160,963) (64,652) 1,097,349 (8,758) (122,368) 31,469 92 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, 2015 Budget - GAAP Basis EXPENDITURES(CONTIN UED): OAP -A Core Services Administration - LEAP Total Public Health and Welfare Capital Expenditures Total Expenditures Other Financing Sources Uses Net Change in Budgetary Fund Balances Fund Balance at Beginning of Year Fund Balance at End of Year Original Final 98,000 1,068,000 200,000 116,000 1,068,000 200,000 Actual 115,565 1,022,415 119,147 Variance 435 45,585 80,853 31,570,900 35,"128,900 33,760,187 1,368,713 9,429 (9,429) 31,570,900 35,"128,900 33,769,616 1,359,284 769,937 229,937 (661,100) (891,037) 3,610,054 3,610,054 3,610,054 $ 4,379,991 $ 3,839,991 $ 2,948,954 $ (891,037) 93 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, 2015 Budget - GAAP Basis Original Final Actual Variance REVENUES Intergovernmental: Federal grants State grants Total Intergovernmental Charges for Services: Charges for services Total Charges for Services $ 6,046,618 $ 6,653,618 $ 6,620,244 $ (33,374) 1,216,506 1,216,506 1,374,899 158,393 7,263,124 7,870,124 7,995,143 125,019 396,000 396,000 420,136 24,136 396,000 396,000 420,136 24,136 Miscellaneous: Donations 150,000 150,000 138,542 (11,458) Miscellaneous - - 4,608 4,608 Total Miscellaneous 150,000 150,000 143,150 (6,850) Total Revenues 7,809,124 8,416,124 8,558,429 142,305 EXPENDITURES Economic Assistance: Human resources general fund Job service Summer job hunt Employment first TANF WIOA WIA administration WIA adult programs WIA youth programs WIA dislocated worker Human resources lab pool UI training program - - (8,005) 8,005 939,000 1,039,000 1,210,208 (171,208) 30,000 30,000 39,999 (9,999) - 270,000 - 270,000 - - 1,117 (1,117) - - 248,384 (248,384) 182,000 182,000 7,972 174,028 852,875 852,875 824,343 28,532 690,000 800,000 763,916 36,084 500,000 500,000 445,157 54,843 350,000 350,000 248,113 101,887 195,000 195,000 75,571 119,429 94 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, 2015 Budget - GAAP Basis Original Final Actual Variance EXPENDITURES (CONTINUED): Area Agency On Aging AAA administration OAA title 111-B OAA title Ill -C1 congregate OAA title Ill -C2 OAA in home support Health services AAA elder abuse AAA ombudsman Single entry point Vale Grant AAA case management AAA state funds Part E family caregiver support CSBG Colorado Choice Transitions Total Economic Assistance Total Expenditures Other Financing Sources (Uses): Transfers - In: OAA area agency Total Other Financing Sources Net Change in Budgetary Fund Balances Fund Balance at Beginning of Year Fund Balance at End of Year - - 12,582 (12,582) 92,500 92,500 82,991 9,509 219,959 219,959 179,043 40,916 531,646 531,646 490,627 41,019 75,000 113,500 134,793 (21,293) 27,200 27,200 10,064 17,136 30,000 30,000 21,601 8,399 2,027 2,027 2,228 (201) 6,958 10,458 9,368 1,090 1,820,000 1,850,000 1,835,085 14,915 9,659 9,659 9,789 (130) - 20,206 (20,206) 871,332 871,332 949,964 (78,632) 88,629 88,629 80,086 8,543 303,175 358,175 361,371 (3,196) 4,515 4,515 5,849 (1,334) 7,821,475 8,428,475 8,062,422 366,053 7,821,475 8,428,475 8,062,422 366,053 12,351 12,351 12,351 12,351 12,351 12,351 508,358 508,358 758,892 758,892 758,892 $ 758,892 $ 758,892 $ 1,267,250 $ 508,358 95 COUNTY OF WELD STATE OF COLORADO Contingent Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended Year Ended December 31, 2015 Budgeted REVENUES Taxes: General property taxes Penalties & interest Total Taxes Total Revenues EXPENDITURES Pension Contribution Total Expenditures Other Financing Sources (Uses) Transfers - Out Other Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year Original Final $ $ Actual Variance - $ (254,623) $ (254,623) 5,626 - 5,626 10,000,000 28,300,000 10,000,000 28,300,000 (10,000,000) (28,300,000) (248,997) (248,997) (248,997) (248,997) 26,"150,000 2,150,000 26,150,000 2,150,000 2,000,000 2,000,000 (2,000,000) (2,000,000) (28,398,997) (98,997) 34,988,751 34,988,751 34,988,751 $ 24,988,751 $ 6,688,751 $ 6,589,754 $ (98,997) 96 Supplemental Information s‘di COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2015 NON -MAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds account for taxes or other earmarked revenue of the County that finances specified activities as required by law or administrative action. Conservation Trust Fund: The Conservation Trust Fund accounts for revenue received from the State of Colorado to be used for the acquisition, development and maintenance of new and existing conservation sites within Weld County. The funds are derived from the Colorado State Lottery. Public Health Fund: The Weld County Public Health Department provides health services to County residents. The fund reflects revenue and expenditures for health care, health education, health monitoring and other related activities. Solid Waste Fund: This fund accounts for revenue received from a surcharge on dumping fees at solid waste disposal sites for the purpose of combating environmental problems and for the further improvement and development of landfill sites within the County. Law Enforcement Authority Funds These funds accounts for the revenue of the law enforcement authority. The authority is a taxing unit created by the County to provide additional law enforcement services by the County Sheriff to residents in a developed unincorporated area of the County 97 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2015 PROPRIETARY FUNDS Enterprise Funds Enterprise funds account for operations that arc financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination or revenue earned, expenses incurred, and/or net income is appropriated for capital maintenance, public policy, management control, accountability or other purposes. Northern Colorado Regional Forensic Laboratory: This Fund accounts for the maintenance and operation cost of the Northern Colorado Regional Forensic Laboratory. It is funded by rents paid by the participating agencies. Internal Service Funds Motor Vehicle Fund: This fund accounts for the revenue and costs generated by equipment and vehicles rented to various departments of the County. Health Insurance Fund: This fund accounts for the County's self -insured dental and vision coverage. Revenue is generated from contributions from the employees of the County. Disbursements are made after insured claims have been verified and approved. Insurance Fund: This fund accounts for all insurance costs for the County, except health insurance. This program is a combination of insured risks and protected self-insurance risks. Phone Services Fund: This fund accounts for all phone costs provided to the County and other outside agencies on a cost - reimbursement basis. 98 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2015 FIDUCIARY FUNDS Agency Funds Agency funds account for assets held by the County as an agent for individuals, private organizations and/or other governments. General Agency Fund: This fund accounts for all monies collected (principally tax collections) by the Weld County Treasurer for various other local governmental units within the County. Payroll Agency Fund: This fund accounts for the accumulation of County payrolls and related withholdings. Disbursements are made to the appropriate financial institutions through the payroll direct deposit system and the various vendors for the withholdings. Employee Flexible Spending: This fund accounts for Weld County's Section 125, voluntary tax-sheltered plan, which the County administers directly. Employee contributions to the plan are refunded upon submission of documentation for un-reimbursed claims. 99 COUNTY OF WELD STATE OF COLORADO EXPLANATIONS OF FUNDS December 31, 2015 COMPONENT UNITS Component units are tied to the County with some board control. They operate as a separate fund but the information is discretely presented. Housing Authority Fund: This fund works with all the low income citizens of Weld County to help with rent assistance or housing repair. E-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 91 l emergency telephone service program in Weld County. 100 101 COUNTY OF WELD STATE OF COLORADO Combining Balance Sheet Non -Major Governmental Funds December 31, 2015 Conservation Trust Public Health Solid Waste ASSETS Cash and Investments Receivables (net of allowance for uncollectibles): Accounts Other Assets Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable Accrued Liabilities Due to other County funds Unearned Revenues Total Liabilities Fund Balances: Nonspendable Restricted Committed Total Fund Balances Total Liabilities and Fund Balances $ 305,772 128,089 $ 8,695,726 $ 1,889,102 920,208 119,511 3,460 $ 433,861 $ 433,861 9,619,394 $ 2,008,613 43,524 249,715 2,225 145,554 441,018 3,460 9,174,916 619 619 2,007,994 433,861 9,178,376 2,007,994 $ 433,861 $ 9,619,394 $ 2,008,613 102 Total Law Nonmajor Enforcement Governmental Authority Fund Funds $ - $ 10,890,600 1,167,808 3,460 $ - $ 12,061,868 44,143 249,715 2,225 145,554 441,637 3,460 9,608,777 2,007,994 - 11,620,231 $ - $ 12,061,868 103 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, 2015 Conservation Trust Public Health Solid Waste REVENUES: Taxes: Taxes Intergovernmental Charges for Services Fines and Forfeitures Miscellaneous Total Revenues EXPENDITURES: Public Safety Public Health and Welfare Culture and Recreation Capital Expenditures Total Expenditures $ - $ - $ 411,605 3,058,305 - 2,001,492 1,659,312 21,040 2,080 100,231 413,685 5,181,068 1,659,312 358,431 8,694,027 40,095 1,026,309 358,431 8,734,122 1,026,309 Excess of Revenues Over (Under) Expenditures 55,254 (3,553,054) 633,003 Other Financing Sources (Uses): Transfers - in Transfers - out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year 9,403,294 (667,998) 9,403,294 (667,998) 55,254 5,850,240 (34,995) 378,607 3,328,136 2,042,989 Fund Balances at End of Year $ 433,861 $ 9,178,376 $ 2,007,994 Total Law Nonmaj or Enforcement Governmental Authority Fund Funds $ 16,273 $ 16,273 3,469,910 3,660,804 21,040 102,311 16,273 7,270,338 16,273 1,042,582 8,694,027 358,431 40,095 16,273 10,135,135 - (2,864,797) 9,403,294 (667,998) 8,735,296 5,870,499 5,749,732 $ - $ 11,620,231 105 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, 2015 Budgeted REVENUES General property taxes Penalties & interest Total Taxes Fees Earnings on Deposits Federal grants Total Revenues EXPENDITURES Capital Outlay: Buildings Total Expenditures Other Financing Sources (Uses) Transfers - In: Net Change in Fund Balance Fund Balances at Beginning of Year Original Final $ $ Actual Variance $ (158,058) $ (158,058) - 1,843 1,843 125,000 400,000 125,000 400,000 (156,215) (156,215) 209,580 84,580 126,126 (273,874) 1,100 1,100 525,000 525,000 180,591 (344,409) 1,836,306 6,322,306 3,717,583 2,604,723 1,836,306 6,322,306 3,717,583 2,604,723 (1,311,306) (5,797,306) (3,536,992) 8,676,922 18,636,649 18,636,649 18,636,649 Fund Balances at End of Year $ 17,325,343 $ 12,839,343 $ 15,099,657 $ 2,260,314 106 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, 2015 Budgeted Original Final Actual Variance KLVENUES Intergovernmental: State Lottery Miscellaneous: Earnings on Deposits Total Revenues EXPENDITURES Culture and Recreation: Land Improvements Total Expenditures Net Change in Fund Balances Fund Balances at Beginning of Year $ 450,000 $ 450,000 $ 411,605 $ (38,395) 2,500 2,500 2,080 (420) 452,500 452,500 413,685 (38,815) 486,520 486,520 358,431 128,0g9 486,520 486,520 358,431 128,089 (34,020) (34,020) 55,254 89,274 378,607 378,607 378,607 Fund Balances at End of Year $ 344,587 $ 344,587 $ 433,861 $ 89,274 107 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, 2015 Budgeted REVENUES Intergovernmental: State grants Total Intergovernmental Charges for Services: Charges for services Total Charges for Services Miscellaneous: Fees and Fines Other Donations Total Miscellaneous Total Revenues EXPENDITURES Public Health and Welfare: Public Health Administration Health Education Nursing Environmental Health Public Health Preparedness Total Public Health and Welfare Capital Outlay: Capital Expenditures Total Expenditures Other Financing Sources (Uses): Transfers - In: N on -Departmental Total Other Financing Sources Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year Original Final Actual Variance $ 2,914,907 $ 2,914,907 $ 3,058,305 $ 143,398 2,914,907 2,914,907 3,058,305 143,398 1,602,546 1,602,546 1,602,546 1,602,546 5,000 22,208 5,000 22,208 27,208 27,208 4,544,661 4,544,661 180,000 1,384,417 4,609,559 2,995,624 278,355 180,000 1,384,417 4,609,559 2,995,624 278,355 9,447,955 9,447,955 9,447,955 9,447,955 4,903,294 9,403,294 4,903,294 9,403,294 4,500,000 3,328,136 3,328,136 $ 3,328,136 $ 7,828,136 2,001,492 398,946 2,001,492 398,946 21,040 81,958 18,273 121,271 16,040 81,958 (3,935) 94,063 5,181,068 636,407 198,520 1,245,737 4,038,041 2,958,846 252,883 (18,520) 138,680 571,518 36,778 25,472 8,694,027 753,928 40,095 (40,095) 8,734,122 713,833 9,403,294 9,403,294 5,850,240 1,350,240 3,328,136 $ 9,178,376 $ 1,350,240 108 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, 2015 Budgeted REVENUES Land Fill Surcharges 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 Fund Balances at End of Year Original Final Actual Variance $ 1,100,000 $ 1,500,000 $ 1,659,312 $ 159,312 1,100,000 1,500,000 1,659,312 159,312 432,002 1,282,002 1,026,309 255,693 432,002 1,282,002 1,026,309 255,693 85,000 582,998 85,000 582,998 85,000 582,998 (667,998) (667,998) (667,998) (450,000) (34,995) 415,005 2,042,989 2,042,989 2,042,989 $ 2,042,989 $ 1,192,989 $ 2,007,994 $ 415,005 109 COUNTY OF WELD STATE OF COLORADO Bebec Draw Law Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2015 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 Balances Fund Balances at Beginning of Year Fund Balances at End of Year $ 21,223 $ 21,223 $ 11,053 $ (10,170) 1,000 1,000 1,416 416 - - 3 3 22,223 22,223 12,472 (9,751) 22,223 22,223 12,472 9,751 22,223 22,223 $ -$ 12,472 9,751 $ _ $ 110 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, 2015 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 Balances Fund Balances at Beginning of Year Fund Balances at End of Year $ 1,970 $ 1,970 $ 1,970 $ 100 100 131 - - 3 _ 2,070 2,070 2,104 31 3 34 2,070 2,070 2,104 (34) 2,070 2,070 2,104 (34) $ $ $ $ 111 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, 2015 Budgeted Original Final Actual Variance REVENUES Taxes General property taxes Penalties & interest Total Revenues $ 1,590 $ 1,590 $ 1,591 $ - - 106 1 106 1,590 1,590 1,697 107 EXPENDITURES Miscellaneous 1,590 1,590 1,697 (107), Total Expenditures 1,590 1,590 1,697 (107) Net Change in Fund Balance Fund Balances at Beginning of Year Fund Balances at End of Year $ $ $ $ 112 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, 2015 Budgeted Original Final Actual Variance REVENUES Intergovernmental: Federal grants State grants Total Intergovernmental Miscellaneous: Earnings on Deposits Miscellaneous Total Miscellaneous Total Revenues 2,586,666 2,586,666 3,485,567 898,901 2,586,666 2,586,666 3,485,567 898,901 7,633 7,633 75,342 75,342 82,975 82,975 2,586,666 2,586,666 3,568,542 981,876 EXPENDITURES Rent Assistance 2,319,314 2,319,314 3,161,622 (842,308) Supplies 231,162 231,162 296,703 (65,541) Depreciation - - 1,349 (1,349) Total Expenditures 2,550,476 2,550,476 3,459,674 (909,198) Net Change in Fund Balances 36,190 36,190 108,868 72,678 Fund Balances at Beginning of Year 2,179,977 2,179,977 Fund Balances at End of Year $ 36,190 $ 36,190 $ 2,288,845 $ 2,252,655 113 COUNTY OF WELD STATE OF COLORADO E-91 1 Authority Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the fiscal year ended December 31, 2015 Budgeted REVENUES Miscellaneous: Interest Charges for services Total Revenue Expenditures Depreciation Purchased Services Supplies Total Expenditures Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year Blank Page Original Final Actual Variance $ 10,000 $ 10,000 $ 9,978 $ (22) 2,450,000 2,450,000 2,331,190 (118,810) 2,460,000 2,460,000 2,341,168 (118,832) 413,842 1,501,481 521,754 413,842 1,501,481 521,754 2,437,077 2,437,077 22,923 22,923 4,745,091 4,745,091 463,564 1,488,324 519,954 (49,722) 13,157 1,800 2,471,842 (34,765) (130,674) (153,597) 4,745,091 $ 4,768,014 $ 4,768,014 $ 4,614,417 $ (153,597) 114 115 Financial Planning 02,101 The public report burden thr this information collection is estimated to average 380 hours annually. Form # 350-050-36 LOCAL HIGHWAY FINANCE REPORT City or County: Weld YEAR ENDING : December 2015 This Information From The Records Of County of Weld Prepared By: Barbara Connolly Phone: 9704004445.00 I. DISPOSITION OF HIGHWAY -USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM A. Local Motor -Fuel Taxes B. Local Motor -Vehicle Taxes C. Receipts from D. Receipts from State Highway- Federal Highway User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for hi _hwa ur sses 11. RECEIPTS FOR ROAD AND STREET PURPOSES RI. DISBURSEMENTS FOR ROAD AND STREET PURPOSES ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: I. Local highway -user taxes 1. Capital outlay (from page 2) 59,245,813 a. Motor Fuel (from Item 1.A.5.) 2. Maintenance: 12,429,907 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) thnd a. Traffic control operations 2. General appropriations b. Snow and ice removal 1,629,778 3. Other local imposts (from page 2) 25,897,501 c. Other 372,178 4. Miscellaneous local receipts (from page 2) 20,074,128 d. Total (a. through c.) 2,001,956 5. Transfers from toll facilities 4. General administration & miscellaneous 3,325,449 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 77,003,125 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes I. Bonds: d. Total (a. _ b. + c.) 0 a. Interest 7. Total (1 through 6) 45,971,629 b. Redemption B. Private Contributions c. Total (a. + b.) 0 C. Receipts from State government (from page 2) 2. Notes: 21,931.624 a. Interest D. Receipts from Federal Government (from pag.c 2) b. Redemption 528,308 c. Total (a. + b.) 0 E. Total receipts (A.7 + B + C + D) 68,431,561 3. Total (1.c + 2.c) 0 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + R.3 + C + O) 77,003,125 IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) Opening Debt Amount Issued Redemptions Closing. Debt y A. Bonds Total 0 I . Bonds (Refundin Portion- . otes (l ota ) V. LOCAL ROAD AND STREET FUND BALANCE A. Beginning Balance B. Total Receipts IC. Total Disbursement4 D. Ending Balance E. Reconciliation 79,042)33 68,431,561 I 77,003,125 I 70,471,169 0 Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE 1 (Next Page) 2015 Local Highway Finance Report.xls 116 LOCAL HIGHWAY FINANCE REPORT STATE: Colorado YEAR ENf)TNG (mm/yy): December 2015 II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM AMOUNT ITEM AMOUNT 4.3. Other local im osts: 4.4. M scellancous local retell Its: a. Property Taxes and Assessments 16,298.865 a. Interest on investments 61,123 b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Imiact Fees d. Parking Meter Fees 3. Liens c. Sale of Surplus Property 4. Licenses f. Charges for Services 2,006,928 5. Specific Ownership &/or Other 9,598,636 g. Other Misc. Receipts 2,091,328 6. Total (1. through 5.) 9,598,636 h. Other 15,914,749 c. Total (a. + b.) 25,897.501 (Carry forward to a c 1) i. Total (a. throu h.) 20,074,128 (Carr ' forward to a c I) ITEM AMOUNT ITEM AMOUNT C. Recei I is from State Government D. Recei its from Federal Government 1. Hi hwa -user taxes 10,397.410 1. FHWA (from Item 1.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 349,108 a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 326,123 d. Federal Transit Admin d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers c. Other (Specify) 11,208,091 f. Other Fcdcral 179,200 f. Total (a. through e.) 11,534,214 g. Total (a. through f.) 528,308 4. Total 1. + 2. - 3.f 21 931.624 3. Total 1. + 2._ (Carry forward to page 1) Ill. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL A.1. Ca a ital. outla r: a. Right -Of -Way Costs ON NATIONAL HIGHWAY OFF NATTONAI_ HIGHWAY SYSTEM (b) 2,087,504 TOTAL (c) 2,087,504 SYSTEM (a) b. En_ineerin Costs c. Construction: (1). New Facilities 4,363.092 4,363.092 0 (2). Capacity Improvements 34,910,100 34,910,100 (3). System Preservation 17,885,117 17,885,117 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) ± (3) + (4) 0 52,795;217 52,795;217 , d. Total Capital Outlay (Lines l.a. + 1.b. + 1.c.5) 0 59,245,813 59,245,813 (Carry Lhrward to page I ) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 117 COUNTY OF WELD STATE OF COLORADO Combining Statement of Net Position Internal Service Funds December 31, 2015 ASSETS Current Assets: Cash and cash equivalents Receivables (net of allowances for uncollectables): Property taxes receivable Delinquent property taxes Accounts Due From other County Funds Inventory Other Assets Total current assets Fixed assets: Improvements other than buildings Construction in progress Buildings Machinery and Equipment Accumulated Depreciation Total Fixed Assets Total assets LIABILITIES, DEFERRED INFLOWS AND NET POSITION Current Liabilities Accounts Payable Accrued Liabilities Unearned Revenues Total Current Liabilities Deferred Inflows of Resources Property Taxes Total Deferred Inflows of Resources Total Liabilities and Deferred Inflows Net Position Invested in capital assets Restricted for: Insurance Claims Unrestricted Total net position Health Motor Vehicle Insurance Insurance $ 2,553,421 $ 14,149,520 $ 3,658,701 10,579 53,446 2,053,081 33,450 2,617,446 14,149,520 5,745,232 1,173,951 36,000 2,111,422 43,819,102 (27,400,190) 19,740,285 $ 22,357,731 $ 14,149,520 $ 5,745,232 $ 479,015 $ 42,218 $ 45,783 2,881,794 2,013,218 1,526,376 479,015 4,450,388 2,059,001 - - 2,054,977 2,054,977 479,015 4,450,388 4,113,978 19,740,285 2,138,431 9,699,132 1,631,254 $ 21,878,716 $ 9,699,132 $ 1,631,254 Total Internal Phone Services Service Funds $ 134,521 $ 20,496,163 2,053,081 2,449 49,915 186,885 874,643 1,482,682 (1,295,812) 1,061,513 13,028 33,450 53,446 49,915 22,699,083 1,173,951 910,643 2,111,422 45,301,784 (28,696,002) 20,801,798 $ 1,248,398 $ 43,500,881 $ 6,350 $ 573,366 32,07K 4,927,090 1,526,376 38,428 7,026,832 2,054,977 2,054,977 38,42K 9,081,K09 1,061,513 20,8()1,79K 1 1,330,386 148,457 2,286,888 $ 1,209,970 $ 34,419,072 119 COUNTY OF WELD STATE OF COLORADO Combining Statement of Revenues, Expenditures and Changes in Net Position Internal Service Funds For the fiscal year ended December 31, 2015 Operating revenues: Employer Contributions Charges for Services Total operating revenues Operating expenses: Personnel Services Supplies Purchased Services Insurance and Bonds Depreciation Other Claims Total operating expenditures Operating income (loss) Nonoperating Revenues (Expenses) Taxes Miscellaneous Earnings on investments Grants Gains (loss) on Disposal Judgment and Damages Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Changes in net position Total net position - beginning Total net position - ending Motor Vehicle Health Insurance $ - $ 9,717,421 9,717,421 1,436,072 5,591,782 3,982,366 87,688 Insurance 18,189,712 $ 1,397 75,647 18,191,109 9,331 1,536,338 98,076 75,647 7,685 39,247 684,730 - 13,872,911 1,863,867 11,097,908 ( 1,380,487) 2,549 430,532 98,778 531,859 (848,628) (848,628) 22,727,344 $ 21,878,716 15,516,656 2,595,529 2,674,453 (2,519,882) 1,956,254 28,013 34,527 2,018,794 2,674,453 (501,088) 2,674,453 (501,088) 7,024,679 2,132,342 $ 9,699,132 $ 1,631,254 Total Internal Phone Services Service Funds $ - $ 18,189,712 1,397,937 11, 192,402 1,397,937 29,382,114 310,864 310,864 18,858 1,471,946 1,309,244 8,476,611 684,730 132,958 4,115,324 63,991 249,755 15,736,778 1,835,915 31,046,008 (437,978) (1,663,894) 1,956,254 2,549 28,013 430,532 98,778 34,527 2,550,653 (437,978) 886,759 (437,978) 886,759 1,647,948 33,532,313 $ 1,209,970 $ 34,419,072 121 COUNTY OF WELD STATE OF COLORADO Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended December 31, 2015 Motor Vehicle Health Insurance Insurance Fund Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from external customers 72,024 Cash flows from internal customers 9,341,985 18,335,517 58,447 Cash payments to external suppliers for goods and services (6,629,612) (15,409,390) (2,494,174) Cash payments to internal suppliers for goods and services (148,023) (19,107) Cash payments to employees for services Judgements/damages/losses - - 34,527 Miscellaneous revenues 2,549 Net cash provided (used) by operating activities 2,638,923 2,907,020 (2,401,200) Im CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes Transfers/Advances Grants Net cash provided by noncapital financing activities 440,053 1,954,981 440,053 - 1,954,981 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Proceeds from sale of capital assets (3,500,048) 263,597 Net cash provided (used) for capital and related financing activities (3,236,451) im CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments - - 28,013 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 (157,475) 2,907,020 (418,206) 2,710,896 11,242,500 4,076,907 2,553,421 14,149,520 3,658,701 (1,380,487) 3,982, 366 2,549 (4,591) 3,883 I. 35,203 INS 4,019,410 2,674,453 (2,519,882) mb im 68,851 (22,901) 29,003 48,803 88,602 34,527 (16,590) (33,450) 137,814 16,590 232,567 118,682 2,638,923 2,907,020 (2,401,200) 71,501 122 Phone Service Total Internal Fund Service Funds 25,221 97,245 1,373,684 29,109, 633 (397,645) (24,930,821) (1,043,593) (1,210,723) (301,110) (301,110) - 34,527 - 2,549 (343,443) 2,801,300 1,954,981 440,053 2,395, 034 (874,643) (4,374,691) - 263,597 (874,643) (4,111, 094) - 28,013 (1,218,086) 1,352,607 1,113,253 19,382, 910 134,521 20,496,163 (437,978) (1,663,894) 132,958 4,115,324 - 34,527 - 2,549 (150) (21,331) - (33,450) - 3,883 (49,915) 18,936 2,316 43,621 9,326 146,731 el e 154,404 94,535 4,465,194 (343,443) 2,801,300 - el 71,501 123 COUNTY OF WELD STATE OF COLORADO Combining Statement of Changes in Assets and Liabilities Fiduciary Funds For the fiscal year ended Year Ended December 31, 2015 Balance Balance 1/1/2015 Additions Deductions 12/31/2015 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 (net of allowance for uncollectible): Total Assets Liabilities: Accounts Payable Total Liabilities EMPLOYEE FLEXIBLE SPENDING Assets: Cash and Investments Total Assets Liabilities: Accounts Payable Total Liabilities TOTAL - ALL AGENCY FUNDS Assets: Cash and Investments Accounts Receivable Total Assets Liabilities: Accounts payable Due to other governments Total Liabilities $ 8,969,570 $ 9,823,221 $ 9,267,757 $ 9,525,034 $ 8,969,570 $ 9,823,221 $ 9,267,757 $ 9,525,034 $ - $ 3,100 $ 3,100 $ 8,969,570 9,791,960 9,236,496 9,525,034 $ 8,969,570 $ 9,795,060 $ 9,239,596 $ 9,525,034 $ 142,337 $ 26,420,479 $ 26,412,947 $ 149,869 1,484 12,098 12,352 1,230 $ 143,821 $ 26,432,577 $ 26,425,299 $ 151,099 $ 143,821 $ 27,966,715 $ 27,959,437 $ 151,099 $ 143,821 $ 27,966,715 $ 27,959,437 $ 151,099 $ 45,723 $ 68,659 $ 59,489 $ 54,893 $ 45,723 $ 68,659 $ 59,489 $ 54,893 $ 45,723 $ 68,659 $ 59,489 $ 54,893 $ 45,723 $ 68,659 $ 59,489 $ 54,893 $ 9,157,630 $ 36,312,359 $ 35,740,193 $ 9,729,796 $ 1,484 $ 12,098 $ 12,352 $ 1,230 $ 9,159,1 14 $ 36,324,457 $ 35,752,545 $ 9,731,026 $ 189,544 $ 28,038,474 $ 28,022,026 $ 205,992 8,969,570 9,791,960 9,236,496 9,525,034 $ 9,159,114 $ 37,830,434 $ 37,258,522 $ 9,731,026 124 COUNTY OF WELD STATE OF COLORADO Northern Colorado Regional Forensic Laboratory Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual For the fiscal year ended Year Ended December 31, 2015 Budgeted Operating Expenses: Supplies Purchased Services Other Total Operating Expenses Operating Income (Loss) N onoperating Revenues: Federal grants Total Nonoperating Revenues Net Income (Loss) Net Position at Beginning of Year Net Position at end of Year Original Final Actual Variance - $ 2,813 $ 135,256 2,808 (2,813) (135,256) (2,808) 140,877 140,877 (140,877) (140,877) 140,877 140,877 140,877 140,877 125 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, 2015 Budgeted Operating Revenues: Charges for services Miscellaneous Total Operating Revenues Operating Expenses: Supplies Purchased Services Depreciation Other Total Operating Expenses Operating income (loss) Nonoperating Revenues (Expenses): Other Grant Gain/Loss on Disposal Total Nonoperating Revenues(Expenses) lncome(Loss) before contributions and transfers Net Income (Loss) Net Position at Beginning of Year Net Position at End of Year Original Final Actual $ 5,709,543 $ 6,304,543 $ 3,400,000 3,400,000 9,109,543 9,704,543 2,521,000 3,036,000 3,400,000 87,687 1,521,000 5,096,000 3,400,000 87,687 9,044,687 10,104,687 64,856 (400,144) 1,407,155 1,677,155 (39,856) (74,856) 1,367,299 1,602,299 1,432,155 1,202,155 1,432,155 22,727,344 1,202,155 22,727,344 Variance 5,732,032 $ (572,511) 3,985,389 585,389 9,717,421 12,878 1,436,072 5,591,782 3,982,366 87,688 11,097,908 (1,380,487) 2,549 430,532 98,778 531,859 (848,628) (848,628) 22,727,344 84,928 (495,782) (582,366) (1) (993,221) (980,343) 2,549 (1,246,623) 173,634 (1,070,440) (2,050,783) (2,050,783) $ 24,159,499 $ 23,929,499 $ 21,878,716 $ (2,050,783) 126 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, 2015 Budgeted Operating Revenues: Employee Premiums Charges for services Total Operating Revenue Operating Expenses: Supplies Purchased Services Other Insurance 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 $ 17,914,044 $ 17,914,044 $ 18,189,712 $ 275,668 1,397 1,397 17,914,044 17,914,044 18,191,109 277,065 196,500 196,500 726,500 726,500 1,496,061 1,496,061 15,494,983 15,494,983 9,331 187,169 1,536,338 (809,838) 98,076 1,397,985 13,872,911 1,622,072 17,914,044 17,914,044 15,516,656 2,397,388 2,674,453 2,674,453 2,674,453 2,674,453 7,024,679 7,024,679 7,024,679 $ 7,024,679 $ 7,024,679 $ 9,699,132 $ 2,674,453 127 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, 2015 Budgeted Operating Revenues: Charges for services Operating Expenses: Supplies Purchased Services Insurance and Bonds Insurance Claims Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): General property taxes Penalties & interest Interest Judgment and Damages Total Nonoperating Revenues (Expenses) Income(Loss) before contributions and transfers Net Income (Loss) Net Position at Beginning of Year Net Position at End of Year Original Final $ 80,000 $ Actual Variance 80,000 $ 3,500 43,500 550,000 1,563,000 3,500 43,500 750,000 1,863,000 2,160,000 2,660,000 (2,080,000) (2,580,000) 2,000,000 30,000 50,000 2,000,000 30,000 50,000 2,080,000 2,080,000 2,132,342 (500,000) (500,000) 2,132,342 75,647 $ (4,353) 7,685 39,247 684,730 1,863,867 2,595,529 (4,185) 4,253 65,270 (867) 64,471 (2,519,882) 60,118 1,955,056 1,198 28,013 34,527 (44,944) 1,198 (1,987) (15,473) 2,018,794 (61,206) (501,088) (1,088) (501,088) (1,088) 2,132,342 $ 2,132,342 $ 1,632,342 $ 1,631,254 $ (1,088) 128 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, 2015 Budgeted Operating Revenues: Charges for services Operating Expenses: Personnel Services Supplies Purchased Services Depreciation Other Total Expenditures Operating Income (Loss) Net Income (Loss) Fund Balance, Beginning of Year Fund Balance, End of Year Original Final Actual Variance $ 1,412,749 $ 1,412,749 $ 1,397,937 $ (14,812) 286,504 600 800,262 261,392 63,991 301,504 18,600 1,282,462 261,392 63,991 310,864 18,858 1,309,244 132,958 63,991 1,412,749 1,927,949 1,835,915 (515,200) (515,200) (9,360) (258) (26,782) 128,434 92,034 (437,978) 77,222 (437,978) 77,222 1,572,295 1,647,948 1,647,948 $ 1,572,295 $ 1,132,748 $ 1,209,970 $ 77,222 129 130 STATISTICAL SECTION STATISTICAL SECTION (unaudited) This part of the Weld County Government's comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the government's. financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity Weld County is without bonded debt and, accordingly, the following statistical tables are not presented: Ratios of Outstanding Debt by Type and Ratios of General Bonded Debt Oustanding. Demographic and Economic Infonnation These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's .financial activities take place. Operating Information These schedules contain service and infrastructure rastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Page 132 140 145 149 154 Sources_ Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. COUNTY OF WELD STATE OF COLORADO Net Position by Component Last Ten Years (accrual basis of accounting) Govermental activities Invested in capital assets, net of related debt Restricted for Programs Emergencies Claims Public Works Other Unrestricted Total governmental activities net position Business -type activities Invested in captial assets, net of related debt Unrestricted Total business -type activities net position Primary government Net Investment in Capital Assets Restricted Unrestricted Total primary government net position Fiscal Year 2006 2007 2008 $ 233,626,280 S 249,237,323 S 253,009,697 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 2009 S 256,826,307 4,524,110 6,000,000 2,270,613 2010 S 254,893,784 4,912,503 6,000,000 4,734,410 48,545,826 40,122,962 37,397,773 40,819,002 66,081,025 S 291,874,507 S 300,097,258 S 300,711,124 S 310,440,032 S 336,621,722 S 852,705 S 987,445 S 1,076,125 $ 1,011,224 S 1,305,614 2,118,077 2,191,453 2,776,179 2,478,408 3,194,266 S 2,970,782 5 3,178,898 S 3,852,304 S 3,489,632 S 4,499,880 S 234,478,985 S 250,224,768 S 254,085,822 S 257,837,531 9,702,401 10,73 6,973 10,3 03,654 12,794,723 50,663,903 42,314,415 40,173,952 43,297,410 5 294,845,289 $ 303,276,156 S 304,563,428 S 313,929,664 S 256,199,398 15,646,913 69,275,291 S 341,121,602 2011 2O12 2O13 2O14 2015 S 252,365,188 S 260,630,887 S 270,069,712 S 297,892,975 S 340,942,910 5,360,845 6,197,551 5,736,608 8,104,172 7,493,150 6,000,000 6,000,000 6,000,000 7,000,000 7,000,000 4,734,409 4,734,409 4,734,409 4,734,409 4,734,408 - 39,542,250 63,999,271 89,429,234 79,771,261 - 1,000,426 1,485,432 1,049,628 1,866,083 74,131,389 50,626,441 58,762,664 66,196,157 53,394,168 S 342,591,831 S 368,731,964 $ 410,788,096 5 474,406,575 5 495,201,980 S 1,524,148 5 - S - S - S 3,526,143 - (1,323) 579 (10,232) 5 5,050,291 5 - S (1,323) S 579 5 (10,232) S 253,889,336 S 260,630,887 S 270,069,712 S 297,892,975 S 340,942,910 16,095,254 57,474,636 81,955,720 110,31 7,443 100,864,902 77,657,532 50,626,441 58,761,341 66,196,736 53,383,936 S 347,642,122 S 368,731,964 5 410,786,773 5 474,407,154 5 495,191,748 COUNTY OF WELD STATE OF COLORADO Changes in Net Position Last Ten Years (accrual basis of accounting) Expenses Governmental activities: General government Public safety Streets and highways Health and welfare Culture and recreation Economic assistance Interest on long-term debt Total governmental activities expenses Business -type activites: Paramedic service Northern Colorado Regional Crime Lab Total primary government expenses Program Revenues Governmental activites: Charges for services: General government Public safety Streets and highways Health and welfare Culture and recreation Economic assistance Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Paramedic service Northern Colorado Regional Crime Lab Total primary government revenues Net (Expenses)/Revenue Governmental activities Business -type activities Total primary government net General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes Specific Ownership Other Royalties Miscellaneous Unrestricted investment earnings Donated capital assets Transfers Total governmental activities Business -type activities: Paramedic service Northern Colorado Crime Lab Total primary government Change in Net Position Governmental activities Business -type activities Total primary government 2006 $ 26,641,373 $ 32,562,998 37,068,628 26,179,807 1,549,379 11,747,943 322 293 136.072.421 2007 35,301,327 36,717,165 34,637,731 31,026,419 1,008,703 14,403,662 335 771 153.430.778 2008 $ 31,019,065 $ 40,496,490 40,795,016 35,117,225 1,077,743 14,601,330 2009 31,738,352 40,649,718 31,123,536 39,882,326 1,013,683 15,546,027 2010 $ 31,497,117 40,551,255 34,662,990 37,946,589 1,215,481 9,262,302 163.106.869 159.953.642 155.135.734 7,156,700 8,444,840 9,289,761 9,310,991 6,349,218 $ 143,229,121 $ 161,875,618 $ 172,396,630 $ 169,264,633 $ 161,484,952 $ 12,265,623 $ 6,378,749 4,023,310 14,949,936 345,990 1,186,129 30,045,943 69,195,680 7,809,516 10,043,033 4,998,285 3,566,774 17,504,660 453,352 838,871 36,500,297 4,738,627 78,643,899 8,652,955 $ 11,681,170 5,814,979 3,518,926 19,870,091 468,488 756,698 33,134,702 25,454 75,270,508 9,113,166 $ 8,728,521 5,658,339 3,262,996 21,091,150 448,990 1,041,768 36,580,590 $ 10,117,110 7,021,139 1,932,790 21,311,474 549,483 834,429 27,858,758 76,812,354 7,563,318 69,625,183 5,859,468 77.005.196 87,296,854 84.383.674 84.375.672 75.484.651 (66,876,741) 652,816 _ $ (66,223,925) $ $ 62,124,792 $ 6,614,819 5,266,786 4,539,172 7,602 (1,3 00,000) 77,253,171 (74,786,879) 208,115 (74,578,764) (87,836,361) (176,595) $ (88,012,956) (83,141,288) (1,747,673; $ (84,888,961) 67,215,993 $ 72,735,158 $ 7,056,071 7,035,189 3,546,134 5,454,324 5,191,430 4,075,554 75,047,892 6,167,691 3,472,065 1,707,235 5,468,676 2,391,636 (850,000) (1,385,000), 83,009,628 88,450,225 92,870,19.5 (85,510,551) (489,750) $ (86,000,301) $ 95,251,609 6,018,849 845,578 2,556,866 6,415,403 2,103,942 (1,500,000) 111,692,247 850,000 1,385,000 1,500,000 $ 77,253,171 $ 83,009,628 $ 89,300,225 $ 94,255,195 $ 10,376,430 $ 8,222,749 $ 613,864 652,816 208,115 673,405 $ 11,029,246 $ 8,430,864 $ 1,287,269 $ 9,728,907 (362,673) $ 9,366,234 $ 113,192,247 $ 26,181,696 1,010,250 $ 27,191,946 134 2011 2012 2013 2014 2015 $ 31,930,407 $ 34,788,024 $ 43,458,478 $ 46,770,013 $ 37,495,116 42,613,038 44,204,968 47,903,331 54,027,026 58,172,560 37,519,293 37,223,683 39,964,090 42,894,441 43,926,350 35,881,864 1,123,268 8,115,722 36,853,734 1,345,018 7,420,075 38,792,474 1,511,184 8,481,320 39,085,217 1,792,648 9,408,488 42,851,911 1,611,666 8,172,946 157.183.592 161.835.502 180.110.877 193.977.833 192.230.549 5,964,112 2,846,859 73,321 147,713 151,688 $ 163,147,704 $ 164,682,361 $ 180,184,198 $ 194,125,546 $ 192,382,237 $ 12,644,748 6,023,109 2,022,037 19,360,887 619,316 822,309 24,034,211 $ 11,570,917 7,294,578 3,439,523 22,209,032 725,868 381,199 23,821,017 $ 12,595,814 8,981,482 4,473,145 24,231,535 928,631 493,180 32,277,806 $ 13,477,033 $ 13,229,980 5,825,407 25,041,461 1,154,300 567,753 30,442,859 16,052,536 12,538,210 8,907,810 26,912,220 1,045,533 558,678 32,691,222 65,526,617 6,514,522 69,442,134 1,954,205 72.041.139 71.396.339 83,981,593 71,998 84.053.591 89,738,793 149,615 89.888.408 98,706,209 140,877 98.847.086 (91,656,975) (92,393,368) (96,129,284) (104,239,040) (93,524,340) 550,410 (892,654) (1,323) 1,902 (10,811) $ (91,106,565) $ (93,286,022) $ (96,130,607) $(104,237,138) $ (93,535,151) $ 76,808,723 $ 5,743,784 1,794,415 7,169,988 4,305,446 1,804,728 88,229,111 7,302,134 2,410,032 12,083,892 3,009,211 1,341,489 4,157,638 $ 105,940,590 7,347,314 2,291,667 17,325,773 4,098,817 1,181,245 $ 115,694,397 $ 10,028,385 4,350,529 31,503,068 4,807,802 1,473,338 127,447,260 9,600,158 5,115,072 11,330,119 4,220,711 1,190,383 97,627,084 118,533,507 138,185,406 167,857,5 19 158,903,703 - (4,157,638) $ 97,627,084 $ 114,375,869 $ 5,970,109 $ 26,140,139 550,410 (5,050,292) $ 6,520,519 $ 21,089,847 $ 138,185,406 $ 42,056,122 (1,323. $ 42,054,799 $ 167,857,519 $ 63,618,479 1,902 $ 63,620,381 $ 158,903,703 $ 65,379,363 (10,811) $ 65,368,552 135 COUNTY OF WELD STATE OF COLORADO Fund Balances of Governmental Funds Last Ten Years (accrual basis of accounting) General Fund Reserved Unreserved N onspendable * 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* Total for all governmental funds 2006 2007 2008 2009 2010 $ 946,073 $ 1,081,217 $ 1,161,271 $ 846,808 $ 1,882,253 10,630.592 7,007,528 10,645,617 9,960,565 9,967,335 $ 11,576,665 $ 8,088,745 $ 11,806,888 $ 10,807,373 $ 11,849,588 19,019,004 12,074,704 12,631,501 9,861,718 7,138,513 25,281,236 27,791,990 272,790 25,032,274 32,475,341 57,755,218 (2,064,635) 1,617,052 6,362,877 $ 55,876,905 $ 48,228,229 $ 47,406,028 $ 54,761,484 $ 83,106,196 * Difference in fund balance presentation is due to implementation of GASB 54 in 2011 136 2011 2012 2013 2014 2015 $ 687.239 1,216,973 677,240 683,377 867,532 6,000,000 6,863,582 7,114,812 7,671,021 8,432.222 1,927,404 2,305,309 2,089,993 2,105,601 2,071,938 1,808,529 615,428 1,527,256 1,581,113 736,158 10,691,668 10,126,783 10,165,207 11,437,583 13,862,814 $ 21,114,840 $ 21,128,075 $ 21,574,508 $ 23,478,695 $ 25,970,664 963,566 1,020,322 1,321,277 1,253,485 1,281,841 36,493,043 40,377,056 57,704,338 85,864,936 83,017,769 32,295,274 46,347,303 55,508.238 55,668,390 23,697,405 $ 90,866,723 $ 108,872,756 $ 136,108,361 $ 166,265,506 $ 133,967,679 137 COUNTY OF WELD STATE OF COLORADO Changes in Fund Balances, Governmental Funds Last Ten Years (accrual basis of accounting) 2006 2007 2008 2009 2010 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 $ 69,178,181 $ 74,627,631 $ 80,182,212 $ 84,642,477 $ 102,079,791 3,188,354 2,129,731 2,089,925 1,467,282 2,512,999 44,982,577 53,886,023 52,887,281 61,100,082 53,021,343 135,908 416,668 295,246 323,411 587,330 8,232,213 7,800,131 8,898,865 8,939,683 7,771,230 13,377,598 9,567,707 12,523,751 7,132,908 8,133,573 8,602,079 8,061,587 7,845,617 7,546,478 8,827,457 147,696,910 156,489,478 164,722,897 171,152,321 182,933,723 25,366,204 32,605,930 29,061,657 28,311,209 29,608,752 31,881,427 35,945,956 38,564,419 38,668,759 38,176,653 26,315,156 31,798,757 36,643,514 29,595,637 28,524,940 25,993,962 30,940,641 34,585,229 39,287,989 36,850,368 1,550,929 1,011,311 1,077,592 1,014,422 1,214,300 11, 746,242 14,449,197 14,459,482 14,622,541 9,086,301 14,980,649 17,050,592 9,883,207 9,911,307 8,627,695 322,293 335,771 - - - 138,156,862 164,138,155 164,275,100 161,411,864 152,089,009 9,540,048 (7,648,677) 447,797 9,740,457 30,844,714 11,309,847 4,340,010 4,914,085 7,583,632 7,157,161 12,609,847 4,340,010 6,184,085 9,968,632 9,657,161 (1,300,000) - (1,270,000) (2,385,000) (2,500,000) $ 8,240,048 $ (7,648,677) $ (822,203) $ 7,355,457 $ 28,344,714 Debt Service as a percentage of noncapital expenditures 0.00 % 0.26 % 0.23 % 0.00 % 0.00 % 138 2011 2012 2013 2014 2015 $ 84,310,617 $ 97,903,945 $ 115,265,310 $ 130,031,486 $ 141,611,918 2,093,316 2,968,095 3,341,876 5,434,346 4,259,547 44,670,251 45,584,435 51,914,958 56,514,382 60,481,735 441,455 319,091 342,566 351,384 734,179 6,899,382 7,748,408 9,950,307 13,024,221 13,553,203 15,397352 19,019,845 24,954,352 41,065,332 24,064,183 9,445,288 10,3 92,181 11,297,774 12,202,782 13,559,930 163,257,661 183,936,000 217,067,143 258,623,933 258,264,695 30,964,059 31,775,959 41,791,404 47,479,034 90,138,082 40,657,128 43,270,068 46,843,573 52,038,711 55,702,273 30,834,148 37,846,573 39,783,527 59,780,472 85,573,209 35,187,959 36,737,703 38,802,420 39,439,892 42,714,599 1,127,873 1,346,107 1,526,889 1,793,944 1,623,459 7,880,482 7,517,791 8,539,305 9,571,342 8,496,919 7,795,485 7,589,459 12,144,427 15,963,395 6,313,983 154,447,134 166,083,660 189,431,545 226,066,790 290,562,524 8,810,527 17,852,340 27,635,598 32,557,143 (32,297,829) 15,807,328 11,194,959 13,766,733 10,970,458 9,500,645 16,857,328 11,041,260 14,166,733 13,370,458 9,500,645 (1,050,000) 153,699 (400,000) (2,400,000) $ 7,760,527 $ 18,006,039 $ 27,235,598 $ 30,157,143 $ (32,297,829) 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 139 COUNTY OF WELD STATE OF COLORADO Assessed Value and Estimated Actual Value of Taxable Property Last Ten Years Levy Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Vacant Land 110,566,010 132,402,840 125,609,000 114,462,060 107,499,350 82,601,960 76,770,990 67,644,470 62,623,500 75,809,040 Residential Property 1,051,061,180 1,218,082,640 1,258,374,790 1,147,417,980 1,161,670,030 1,1 10,455,180 1,126,143,600 1,125,171,520 1,153,472,230 1,447,893,380 Source: Office of the Weld County Assessor Commercial Property 538,352,810 631,036,750 654,957,800 703,405,460 713,727,230 700,148,970 741,004,020 717,135,660 733,310,060 778,585,040 Industrial Property 194,235,560 214,051,130 216,214,910 281,991,090 338,066,670 343,525,350 405,141,700 444,712,190 540,611,520 639,540,080 Auricultural 175,708,230 96,371,890 97,874,960 100,747,790 100,999,290 117,189,830 120,086,240 141,969,440 148,595,520 179,732,720 Natural Resources 10,876,640 14,538,010 14,996,920 15,959,790 12,388,270 12,839,310 12,176,900 14,519,910 14,908,830 18,995,220 Note: The assessment ratio for Residential Property was 10.36 in 1995, changed to 9.74 in 1997, 9.15 in 2001 and 7.96 in 2003 as determined by State Law. Commercial Property and non-residential Personal Property has been assessed at 29% of actual value throughout the ten-year time frame. 140 Oil & Gas 1,736,735,240 1,749,1 19,710 1,709,997,160 2,868,304,890 1,673,838,130 2,439,298,540 3,382,053,530 3,900,510,227 5,738,450,910 7,669,479,580 State Assessed 386,413,500 412,859,500 487,797,900 538,504,800 593,020,000 615,803,700 650,106,300 707,171,100 738,109,300 773,068,200 Total Taxable Assessed Value 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 7,1 18,834,517 9,130,081,870 11,583,103,260 Estimated Actual Taxable Value 21,01 1,080,893 22,698,462,039 23,564,608,165 24,007,360,964 23,154,987,218 22,248,958,038 25,455,503,949 33,821,697,185 29,739,252,147 36,760,335,781 Total Direct Tax Rate 17.900 16.804 16.804 16.804 16.804 16.804 16.804 16.804 15.800 15.800 Assessed Value as a Percentage of Actual Value 20.008 % 19.686 % 19.376 % 24.038 % 20.303 % 24.369 % 25.588 % 21.048 % 30.700 % 31.510 % COUNTY OF WELD STATE OF COLORADO Property Tax Rates Direct and Overlapping Governments Last Ten Years General Levy Year Government 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12.321 11.487 11.736 11.842 11.389 10.479 10.476 l l .788 12.797 9.881 Total Direct Road & Bridge Public Welfare Contingent Capital Insurance County 1.847 1.668 1.647 1.613 1.498 1.303 1.303 1.639 1.839 1.444 1.551 1.333 1.293 1.266 1.965 1.863 1.864 1.203 0.941 0.843 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 2.013 1.444 0.277 0.298 0.336 0.329 0.322 0.326 0.326 0.285 0.223 0.175 Overlapping Rates Levy Year Direct City of School Aims Weld County Greeley District 6 College Library 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 6.320 3.261 2014 15.800 11.274 37.880 6.330 3.267 2015 15.800 11.274 36.003 6.325 3.308 The basis for the property tax rates is per $1,000 assessed valuation Source: Office of the Weld County Assessor. 17.900 16.804 16.804 16.804 16.804 16.804 16.804 16.804 15.g00 15.g00 142 COUNTY OF WELD STATE OF COLORADO Principle Property Tax Payers Current Year and Nine Years Ago 2015 S Kerr-McGee Oil & Gas Onshore LP Noble Energy Inc Encana Oil & Gas On Shore LP Bonanza Creek Energy Inc PDC Energy Inc Public Service Company of CO (Xcel) DCP Midstream LP Extraction Oil & Gas LLP Bill Barrett Corporation Whiting Oil & Gas Kerr-McGee Rocky Mountain Corp Petroleum Development Corp (PDC) Rocky Mountain Energy Center Petro -Canada Resources (USA) Inc Merit Energy Duke Energy Field Services Eastman Kodak Company Taxable Assessed Value 2,742,921,420 2,115,829,960 639,256,280 432,940,970 432,068,270 236,338,400 202,790,600 186,796,3 00 164,266,450 162,453,010 S 7,315,661,660 Source: Weld County Assessor Percentage of Total County Taxable Assessed Rank Value 1 2 3 4 5 6 7 8 9 10 30.04 91) 23.17 % 7.00 % 4.74 % 4.73 % 2.59 % 2.22 °:% 2.05 1.80% 1.80% 0/ 80.14 % 2006 S 'Taxable Assessed Value Rank 545,469,930 2 168,944,360 3 96,337,200 4 398,688,580 5 563,270,950 1 105,223,960 4 84,814,300 6 74,504,610 7 66,341,460 8 42,713,610 9 40,964,880 10 S 2,187,273,840 Percentage of Total County Taxable Assessed Value 12.98 % 4.02 2.84 % 2.29 % 13.40 % 2.50 % 2.02 1.77% 1.58 % 1.02 % 0.97 % 45.39 310 143 COUNTY OF WELD STATE OF COLORADO Principle Property Tax Payers Current Year and Nine Years Ago Levy Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Collect Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Taxes Levied for the Fiscal Year (1) 64,714,321 70,643,162 75,088,043 76,724,097 96,972,420 78,999,116 91,108,983 109,452,573 119,624,895 144,255,294 Collected Fiscal Year Tax Amount (2) 64,580,198 70,575,408 74,877,199 75,903,359 96,736,465 78,833,201 90,504,925 109,154,195 119,187,009 143,469,905 within the of the Levy Percentage of Levy 99.793 % 99.904 % 99.719 % 98.930 % 99.757 % 99.790 % 99.337 % 99.727 % 99.634 % 99.456 % Collections in Subsequent Years (3 58,771 327,197 167,841 160,585 289,346 181,254 270 802,028 25,495 Total Collections to Date Tax Years (3 64,638,969 70,902,605 75,045,040 76,063,303 97,025,811 79,014,455 90,505,195 109,956,223 119,212,504 143,469,905 Percentage Years (3 99.884 % 100.367 % 99.943 % 99.139 % 100.055 % 100.019 % 99.337 % 100.460 % 99.655 % 99.456 % Source: 1) Office of the Weld County Assessor 2) YTD Treasurer's Tax Distribution for tax years 2004-2010. Values from 2011 forward taken from the Treasurer's Authority Receivable Report 3) YTD Treasurer's Tax Distribution for tax years 2004-2010. Values from 2011 forward taken from the Treasurer's Authority Receivable Report. 144 COUNTY OF WELD STATE OF COLORADO Direct and Overlapping Debt Governmental Activities Debt December 31, 2015 Jurisdiction Cities & Towns Schools Special Districts Total Overlapping Net General Obligation Bonded Debt Outstanding 165,340,374 781,953,845 79,764,612 $ 1,027,058,831 Source: Debt outstanding provided by each governmental unit. Note: Percentage Applicable to Government (1) 74.79% 56.04% 81.77% Amount Applicable to Government (2) 123,656,663 43 8,174,299 65,227,023 $ 627,057,985 (1) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the county. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by residents and businesses of Weld County. This process recognizes that, when considering the county's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government_ (2) Overlapping debt applicable to the County is figured by prorating each local jurisdictions debt by the percentage of the jurisdictions inside and outside the county. 145 COUNTY OF WELD STATE OF COLORADO Legal Debt Margin Infonination Last Ten Years Legal Debt Margin Calculation for Fiscal Year 2015 Assessed Value, 2015 $ 11,583,103,260 Debt Limit 3 percent of Assesed Value 347,493,098 Total Bond Debt Installment Purchase Agreements $0 0 Total Amount of debt applicable to limit 0 Legal Debt Margin $ 347,493,098 Legal Debt Margin Information Last Ten Fiscal Years Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit Note: 2006 2008 2009 126,118,475 134,053,874 136,974,703 173,123,816 $ 126,118,475 $ 134,053,874 $ 136,974,703 $ 173,123,816 0.00 % 0.00 % 0.00 % 0.00 % Debt Limitation: Under Section 30-35-201, Colorado Revised Statutes, 1973, the County may incur indebtedness for general County purposes in an amount not to exceed 3% of assess valuation of all taxable property. 146 2010 2011 141,036,269 162,655,885 2012 195,404,498 2013 2014 2015 213,565,036 273,902,456 347,493,098 $ 141,036,269 $ 162,655,885 $ 195,404,498 $ 213,565,036 $ 273,902,456 $ 347,493,098 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % COUNTY OF WELD STATE OF COLORADO Private Purpose Revenue Bonds December 31, 2015 INDUSTRIAL REVENUE BONDS: ISSUER GSSLB Association Nursing Home DEBT REVENUE BOND TYPE. OF ISSUE OUTSTANDING OUTSTANDING FACILITY AMOUNT DATE BEGINNING OF YEAR ISSUED RETIRED END OF YEAR Nursing Home S 2,020,000 10/98 North Range Behavioral Health Office S 4,500,000 5/07 $850,000 0 570,000 $780,000 S2,607,620 0 162 360 S2,445,260 TOTAL PRIVATE PURPOSE REVENUE BONDS S3,457,620 $0 $232,360 S3,225,260 148 COUNTY OF WELD STATE OF COLORADO Demographic and Economic Statistics Last Ten Years Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Population 229,377 236,908 244,515 251,220 252,825 254,759 263,691 263,691 269,785 274,487 Total Personal Income Per ($ billion) Capita Income 5.84 6.23 6.66 7.38 7.07 6.93 7.76 8.35 8.35 10.74 25,495 26,280 27,238 27,788 28,503 27,186 25,233 29,986 31,657 27,047 Unemployment Rate 3.80 % 4.63 % 6.30 % 8.16 % 9.80 % 9.10 % 8.70 % 6.70 % 3.90 % 3.80 % Source: Upstate Colorado in cooperation with University of Northern Colorado and the State of Colorado demographer. COUNTY OF WELD STATE OF COLORADO Principal Employers Current Year and Nine Years Ago JBS Swift Beef Company Banner Health (NCMC) Vestas School District 6 State Farm Insurance Companies State of Colorado (includes UNC) Weld County Government Halliburton Energy Services Inc City of Greeley Tele Tech Eastman Kodak Company Star Tek Inc Wal-Mart Total Principal Employers Other Employers Total County Employment Source: Upstate Colorado 2015 Employees Percentage of Total County Rank Employment 4,523 1 3,069 2 1,980 3 1,923 4 1,720 5 1,442 6 1,405 7 1,110 8 857 9 700 10 18,729 129,255 147,984 3.07 % 2.07 % 1.34 % 1.30 % 1.16 % 0.97 % 0.95 % 0.75 % 0.58 % 0.47 % 2006 Percentage of Total County Employees Rank Employment 2,300 2 2,700 1 2,052 4 1,445 6 2,066 3 1,400 7 942 8 1,650 5 906 9 856 10 12.66% 16,317 87.34 % 86,395 100.00% 102,712 2.24 % 2.63 % - % 2.00 % 1.41 % 2.01 % 1.36 - % 0.92 % - % 1.61 % 0.88 % 0.83 % 15.89 % 84.11 % 100.00 % 150 t t S 151 COUNTY OF WELD STATE OF COLORADO Full -Time Equivalent County Government Employees by Function/Program Last Ten Years 2006 2007 2008 2009 2010 2011 Function/Program General government (6) Public safety (1) (5) Public works Health and welfare (2) Culture and recreation Economic assistance (3) Total General Government Business -type activities: Paramedic Service (4) Total primary government 256 258 269 247 244 251 279 308 352 365 345 351 167 167 165 163 161 161 305 337 357 372 378 368 1 1 1 1 2 2 166 173 148 144 78 73 1,174 1,244 1,292 1,292 1,20g 1,206 63 67 74 72 69 69 1,237 1,311 1,366 1,364 1,277 1,275 Source: Weld County Human Resources Notes: (1) A traffic unit was added in 2001 funded by the CDOT Office of Highway Safety Grant and initially requiring 5 positions The North Jail Complex was built in 1997 with 160 beds and a staffing level of 75. Phase II added 226 beds in 2004 and increased projected 2005 staffing to 132. Phase III construction in 2006-07 added 374 beds and increased staffing of 42 in 2007. Twelve additional management and support positions were added in 2008. The deferred opening of 122 secure confinement beds contained prevented further hiring. (2) The demand for welfare and public health care has increased more rapidly with the economic downturn. (3) As of 12/31/2009 Headstart responsibilities were relinquished back to the Federal Agency for operational purposes. (4) As of 05/07/2012 Paramedic Services was transferred by Weld County to Northern Colorado Medical Center Inc. (5) In 2013 the Communications Department brought on employees to operate the Call Center for Weld County (6) In 2014 the Weld County Commissioners decided to no longer outsource the Information Technology Department. Therefore, employees were added for this department 152 2012 2013 2014 2015 239 243 290 287 357 432 436 471 164 179 176 183 380 374 383 403 2 2 2 3 79 89 86 89 1,221 1,319 1,373 1,436 1,221 1,319 1,373 1,436 153 COUNTY OF WELD STATE OF COLORADO Operating Indicators by Function/Program Last Ten Years 2006 2007 2008 2009 2010 Function/Pragram General government: Motor vehicle registration Registered voters (1) Number of votes cast (2) Percent of registered voters voting Public safety: Adult arrests Juvenile arrests Average secure jail population E911 Calls Building Permits Valuation (thousands) Public works: Miles of road graveled Snow removal lane miles Grading lane miles Miles of Upgrade -Aggregate Surfaced Roads Culverts (new and repaired) 15" and larger Tons of asphalt laid Tons of gravel crushed Health and welfare: Social Services Caseload Patient contacts Immunizations Culture and recreation: Visitors -Missile Park County Fair Exhibitors Economic assistance: (3) I-leadstart clients Migrant Headstart clients I3usiness-type activities: Paramedic Services Patients transported (4) 466,777 484,412 493,544 478,202 482,841 100,924 88,601 116,269 112,276 145,692 68,871 30,203 106,518 34,027 80,893 68.2 34.1 91.6 30.3 55.5 1,574 1,606 1,122 1,059 1,084 215 224 110 98 96 579 628 610 538 570 92,045 95,524 99,951 95,383 95,866 1,972 2,000 2,571 1,976 2,143 399,473 100,609 120,118 86,794 392,380 160 359 312 205 416 125,225 222,703 94,685 176,786 77,889 164,906 135,779 148,324 152,568 154,602 10 34 52 33 36 242 250 252 233 264 70,421 67,389 67,548 90,664 101,431 408,409 411,582 231,359 282,315 372,709 14,500 15,000 15,500 16,000 20,500 30,440 11,880 11,500 15,000 11,769 6,360 7,165 7,000 7,000 8,159 586 595 600 600 500 2,422 2,326 2,335 2,425 2,383 562 562 562 562 266 266 275 180 8,375 8,210 8,866 9,214 9,214 Source: Various Weld County Department Records Notes: (1) Beginning in 1999 the number of registered voters reflects active voters_ (2) Even years represent general elections, odd years coordinated elections_ (3) As of 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_ 2011 2012 2013 2014 2015 541,678 537,483 573,537 602336 636,302 101,085 162,517 134,936 167,306 162,239 42,937 117,121 66,368 92,525 49,683 42.5 72.1 49.2 55.3 30.6 1,795 1,535 970 726 739 73 105 44 37 45 557 573 575 577 604 93.900 100,230 101.000 105.726 114.548 2,316 2,327 2,4.51 2,674 2,318 126,194 322,183 365,074 782,793 461,167 419 482 402 145 328 89,503 57,474 65,342 75,302 86,064 133,297 1.57,634 144,036 194,527 167,239 41 16 91 87 90 254 222 224 170 137 86,805 125,668 106,155 147,496 134,936 436,880 270,441 238,395 247,935 219,470 23,017 25,500 30,000 31,400 62,000 8,778 12,727 15,084 24,619 43,518 7,333 4,873 6,333 5,674 5,459 650 600 625 5.50 600 2,436 2,489 2,468 1,837 1,568 9,470 COUNTY OF WELD STATE OF COLORADO Capital Asset Statistics by Function/Program Last Ten Years 2006 2007 2008 2009 2010 Function/Program General government: Building Square Footage 719,723 725,723 854,081 860,399 984,052 Court rooms 16 16 17 22 22 Information Systems Connections 1,292 1,292 1,320 1,320 1,320 Public safety: Jail capacity (beds) Patrol cars Radios and cell phones Public works: Miles of Roads Paved Unpaved Un-maintained Grader sheds Motor graders 386 386 760 760 760 55 55 55 62 60 1,229 1,270 1,359 1,179 1,220 675 670 684 674 689 2,387 2,370 2,352 2,331 2,307 327 492 490 493 351 18 18 18 18 18 30 30 30 30 30 Health and welfare: Alternative fuel vehicles 4 4 4 Economic assistance: Headstart sites 11 Business -type activities: Paramedic Services Ambulances (1) 11 11 Source: Weld County Department records and Fixed Asset Inventory 5 5 11 12 ("1) As of 05/07/2012 Paramedic Services was transferred by Weld County to Northern Colorado Medical Center Inc. 2011 2012 2013 2014 2015 984,052 984,052 1,003,846 1,003,846 1,383,120 21 21 22 22 22 1,320 1,320 2,537 2,798 2,502 779 779 779 779 779 60 62 61 64 65 1,064 1,035 1,055 1,165 1,393 696 717 726 738 737 2,289 2,262 2,241 2,224 2,217 354 355 357 356 356 18 18 18 18 20 30 32 34 35 36 5 7 6 6 6 12 COUNTY OF WELD STATE OF COLORADO Insurance in Force December 31, 2015 Name of Company Safety National Casulty Company Colorado Counties Casulty and Property Pool Policy Policy Period, Number Begins Expires Details of Coverage SP 4049871 12/31/14 12/31/15 Excess Worker's Compensation (CAN' Reference) Lexington & Hiseox 20412751 with CAPP One Beacon! 791 -00 -03 -55 - Atlantic Specailty 0004 with CAPP 1/1/2015 1/1/2016 Liability Limits Employer's Liability $1,000,000/Accident Worker's Compensation Statutory Limits with County retaining first S750,000 per claim Property:$150,000/5500 Deducti hie Property Damage, Liability: $250,000 Liability, Crime, Boiler Crime: S125,0004500 deductible and Machinery, Network Bioler and Machinery: $5,000/$500 deductible Network Security:S10,000 01/01/15 01/01/16 Property damage, Property: $100,000,000 Crime; 5100,000 Excess Automobile, Equipment Liability: $100,000 per claim/$150,000 CA PP breakdown deductible 1/1/2015 1/1/2016 Premises and S 1000,000,000 liability coverage per occurence Operations, County retaining firts $250,000 each claim Products/Completed operati on s I .aw enforcement Liability Employe Benefit Liability Public Officials Errors and Omissions IIisox with CAPP UC2119116.15 1/1/2015 1/1/2016 Crime(employee dishonesty, robbery, forgery) Illinois union Insurance with CAPP Markel american Insurance Scottsdale Indemnity CG25660328002 1/1/2015 1/1/2016 Network Sccutity° Liability AGL00 1136000 6/6/2014 6/16/2015 Weld County Retirement Plan Fiduciary Liability F,K 13162291 8/1/2015 8/1/2016 Directors & Officers Liability - Non-profit $1,000,000 $1,000,000 per claim Each Claim & Aggregat: $1,000,000 $1,000,000 Annual Premium 124,971 492,771 S 23,000 S10,136 S 2,675 158 Single Audit WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2015 Program Description Department Of Housing and Urban Development Passed Through the State Of Colorado Department Of Local Affairs: Community Services Block Grant Department Of Agriculture Passed Through the State Of Colorado Department Of Human Services: State Admin Matching Grant for Supplemental Nutrition Assistance Programs Department Of Justice Congressionally Selected Drug Task Force Equitable Shares Funds Passed Through the State of Colorado Division Of Criminal Justice: Violence Against Women Formula Grants Total Department Of Justice Department Of Labor Employment Training Administration Passed Through the State Of Colorado Department Of Labor and Employment: Employment Service Cluster Employment Services/Wagner-Peyser Funded Activities Disabled Veterans Out Reach Program (DVOP) Total Employemnt Service Cluster TAA Case Management WIA Cluster WIA Adult Program WIA Youth Activities WIA ADMIN Disaster NEG Total WIA Cluster WIA ADMIN Adult H1 B WIA Dislocated Worker Formula Grant Total Department Of Labor Training Administration Department Of Transportation Passed Through the State Of Colorado Department Of Transportation: Road Contracts Congestion Mitigation and Air Quality Flood Relief Safe Traffic Studies Total Department Of Transportation Environmental Protection Agency Passed Through the State Of Colorado Department Of Health: Surveys, Studies, Investigations and Special Purpose Grants Radon Out Reach Total Environmental Protection Agency Department Of Health And Human Services Passed Through the State Of Colorado Department Of Local Affairs: Community Services Block Grant Passed Through the State Of Colorado Department Of Health: Public Health Emergency Preparedness Tuberculosis Control Programs Family Planning Services Immunizations Cluster Immunizations Cooperative Agreements Promoting Safe and Stable Families Lead Surveilance Preventative Health Services Preventative Health and Health Services Block Grant Maternal and Child Health Services Block Grant FEDERAL Federal CFDA # Expenditure 14.228 43,460 10.561 2.015,701 16.753 140,877 34,096 16.588 55,964 17.207 17.801 17.245 17.258 17.259 17.277 17.268 17.278 20.205 20.205 20.205 230,937 908,228 7,750 915,978 35,365 789,195 767,809 14,524 1,571,528 38,905 430,671 2.992,447 2,213,335 266,908 342,435 25,005 2.847,683 66.034 26,007 66.605 4,068 30,075 93.569 359,141 93.692 93.116 93.217 93.268 93.556 93.753 93.977 93.991 93.994 228,098 10,683 108,551 86,908 1,600 946 5,985 25,000 178,034 159 WELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2015 Program Description Non -Community Ground Water Womens Wellness Air Quality FDA Tabacco Total Passed Through the State Of Colorado Department Of Health: Passed Through the State Of Colorado Department Of Human Services : OAA -Elder abuse OAA-Ombudsman Supp OAA-D in Home Support Aging Cluster OAA-B Admin/Supportive Services OAA-C-1-Congrate Meals Nutrition Services Incentive Programs Total Aging Cluster OAA-E National Caregiver TANF Cluster Temporary Assistance for Needy Families Child Support Enforcement Low -Income Home Energy Assistance CCDF Cluster Child Care and Development Block Grant Child Care and Development Fund Total CCDF Cluster Guarian Assistance 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 Childrens Health Insurance Program Total Passed Through the State Of Colorado Dept of Health Care Policy and Finance: FEDERAL Federal CFDA # Expenditure 93.XXX 910 93.XXX 50,583 93.XXX 15,620 93.XXX 164,511 877,429 93.041 2,228 93.042 9,367 93.043 10,237 93.044 252,751 93.045 427,541 93.053 56,776 737,068 93.052 80,091 93.558 5,165,773 93.563 2,134,549 93.568 1,546,036 93.575 344,838 93.596 2,185,683 2,530,521 93.090 39,743 93.645 164,763 93.658 3,939,477 93.659 673,857 93.667 463,508 93.674 96,612 93.778 2,340,244 93.XXX 9,787 93.XXX (63,793) 7,664,198 93.778 957,312 93.767 17,861 975,173 Total Department of Health and Human Services 22,091,811 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 Hazard Mitigation Total Passed Through the State Of Colorado Dept of Health Care Policy and Finance: Passed Through the State Of Colorado Department Of Public Safety Disaster Grant & Public Assistance (Presidentially Declared Disaster) 94.006 40,794 97.042 76,000 80,636 156,636 97.036 895,730 Total Department of Homeland Security 1,052,366 31,345,274 160 COUNTY OF WELD STATE OF COLORADO Year End December 31, 2015 Notes to the Schedule of Federal Expenditures 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, 2015. Note 2 — Sub -Recipient Weld County, Colorado does not have any significant sub -recipients. Note 3 - Indirect Costs Weld County's federal programs generally do not untilize the 10% deminimus cost rate, ANdERSON � WhITNEy ■ A Professional Corporation of Certified Public Accountants 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 We have audited in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of 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 and the related notes to the financial statements, which collectively comprise Weld County, Colorado's basic financial statements as of and for the year ended December 31, 2015, and have issued our report thereon dated June 29, 2016. 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 auditor's 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 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 County'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. 5801 West 11th Street . Suite 300 (970) 352-7990 Greeley, Colorado 80634-4813 www.awhitney.com 162 ■ ■ ■ Board of County Commissioners Weld County, Colorado Page 2 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Weld County's financial statements are free of 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. June 29, 2016 163 ANdERSON EiWyhniTNEy ■ ■ ■ ■ ■ A Professional Corporation of Certified Public Accountants Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance Board of County Commissioners Weld. County, Colorado Report on Compliance for Each Major Federal Program We have audited the compliance of Weld County, Colorado with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2015. Weld County's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. The County's basic financial statements include the operations of the Weld County Housing Authority, a component unit, who received $3,485,567 in Federal awards which is not included in the County's schedule during the year ended December 31, 2015. Our audit, as described below, did not include the operations of the Weld County Housing 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 Weld 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; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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. 5801 West 11th Street • Suite 300 (970) 352-7990 Greeley, Colorado 80634-4813 www.awhitney.com 164 Board of County Commissioners Weld County, Colorado Page 2 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 Weld County's compliance. Opinion on Each Major Federal Program In our opinion, Weld County complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended. December 31, 2015. Internal Control Over Compliance Management of Weld 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 Weld County's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program in order 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, 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 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 deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. 165 Board of County Commissioners Weld County, Colorado Page 3 Other Matter 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. June 29, 2016 166 WELD COUNTY, COLORADO SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2015 SUMMARY OF INDEPENDENT AUDITORS' RESULTS Type of report issued on financial statements Internal control over financial reporting: Material weaknesses identified No Significant deficiencies identified None reported v Noncompliance material to the financial statements noted ✓ Internal control over federal awards: Material weaknesses identified Significant deficiencies identified Type of report issued on major programs Audit findings disclosed Major programs y Unmodified No No None reported Unmodified None under 2 CFR 200.516(a). 93.563 Child Support Enforcement 17.258 WIA 17.259 17.278 17.207 Employment Cluster 17.801 20.205 Highway Construction • Dollar threshold between Type A and Type B programs $940,358 ✓ Low -risk auditee Yes FINDINGS RELATED TO FINANCIAL STATEMENTS None Reported FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS • None Reported WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS Year Ended December 31, 2015 vy Finding 2013-004: CFDA 10.561 — State Administrative Matching Grants for SNAP — Special Tests Pass -Through Agency: State of Colorado 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. Condition: Of the 25 case files selected for testing, we noted one file did not contain the required verification of the applicant's income. Questioned Costs: None 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. 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. 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. Management's Response: Agree Corrective Action: Contact Person: Lennie Bottorff, Fiscal Manager; John Kruse, Administrator Status: Implemented 168 WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS Year Ended December 31, 2015 i> Finding 2014-001: CFDA 93.558, .714, .716 — TANF Cluster — Special Tests and Provision Pass -Through Agency: Colorado Department of Human Services 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 income Eligibility and Verification System (IEVS) discrepancy report. Under certain circumstances, action may be delayed beyond 45 days for no more than 20% off the information items targeted for follow-up. Condition: Of the 40 participants selected for testing, we were unable to perform the testing per the compliance requirements for IEVS discrepancy reports on all selections. Questioned Costs: None. Effect: If the County cannot provide the IEVS discrepancy reports, we cannot verify if the existing controls are effective or if they are even in place. If the control is ineffective or does not exist, the County may pay or over compensate a participant who should not be receiving benefits. Cause: The County was unable to provide us with the IEVS discrepancy reports for all selections. Recommendation: We recommend that the County ensures IEVS discrepancy reports are reviewed and have clearedwithin the required 45 days. In addition, we recommend that any current outstanding IEVS discrepancies outstanding in excess of 45 days be cleared immediately. Management's Response: Agree Corrective Action: Contact Person: Lennie Bottorff, Fiscal Manager; John Kruse, Administrator Status: Implemented 169 WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS Year Ended December 31, 2015 i> Finding 2014-002: CFDA 93.558 - Temporary Assistance for Needy Families (TANF)- Special Tests Pass -Through Agency: State of Colorado 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 the County a list of all files needing a Tier 11 review monthly. Condition: During the year ending December 31, 2014, we noted that Tier H case reviews performed by the County did not align with the sample provided by the State as required by the Colorado Work Verification Plan. Questioned Costs: None Effect: By not reviewing the files requested by the State of Colorado at the Tier II level, the County is out of compliance of the Work Verification Plan. The penalty for failure to comply with the Work Verification Plan may be not less than one percent and not more than five percent of the awarded amount (42 USC 601, 602, 607 and 609). Cause: The County was completing a case review of files provided through the COGNOS system; however, this review did not comply with Tier 11 requirements outlined in the Colorado Work Verification Plan. Recommendation: We recommend that the County access the CBMS COGNOS and complete all Tier II file reviews requested by the State of Colorado. Management's Response: Agree Corrective Action: Contact Person: Lennie Bottorff, Fiscal Manager; John Kruse, Administrator Status: implemented 170 WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS Year Ended December 31, 2015 i> Finding 2014-003: CFDA 93.568 — Low Income Housing Energy Assistance — Allowable Costs and Eligibility Pass -Through Agency: Colorado Department of Human Services Criteria: The A-102 Common Rule and OMB Circular A-110 (2 CFR part 215) require that non -Federal entities receiving Federal awards (i.e. auditee management) establish and. maintain internal control designed to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. While outsourcing the management of the program is not a problem, since the County is still ultimately responsible for the Federal funds, they still need to perform checks to determine whether procedures are being followed as intended. Condition: The County contracted with Discovery Goodwill to manage the LEAP program, this included eligibility determination as well as entering the applicable information into CFMS for payment. However, the County did not perform any independent checks on Discover Goodwill, during the period under audit, to verify that Discovery Goodwill was properly determining eligibility and program payments were correct. Questioned Costs: None Effect: Without performing independent checks, the County is unable to verify that eligibility is correctly determined and program payments are proper. Cause: The County outsources the management of the program; however, the County failed to implement controls to appropriately oversee the activities of the service organization. Recommendation: We recommend that the County develop controls to review the services performed by the service organization are consistent with the program requirements. Management's Response: Agree Corrective Action: Contact Person: Lennie Bottorff, Fiscal Manager; John Kruse, Administrator Status: Implemented 171 WELD COUNTY, COLORADO SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS Year Ended December 31, 2015 i> Finding 2014-004: CFDA 14.218 — Community Development Block Grant - Reporting Pass -Through Agency: Colorado Department of Human Services Criteria: Per 75 FR 64337, Section O, Reporting, the County must submit quarterly performance reports. All information reported on the report should be complete and accurate. Condition: While gaining an understanding of the process in place surrounding the review and preparation of the required quarterly reports, we noted that the reports are prepared by the Housing Authority Executive Director and they are not reviewed prior to being submitted to HUD. Additionally, through testing of the required reports, we noted that the balances per the report did not agree to Banner general ledger balances. Questioned Costs: None Effect: The submission of incorrect information to HUD could impact the amount of funding received in the future. Cause: The department size and the volume of work hinder the availability of a staff member to perform an independent review of HUD reports prior to submission. Recommendation: We recommend that the County create a review process to ensure that reports are reviewed and compared to the general ledger prior to submission to HUD. Management's Response: Agree Corrective Action: Contact Person: Barb Connolly, Controller Status: Implemented 172 Hello