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Home My WebLink About20142455.tiff OFFICE OF THE PUBLIC TRUSTEE ,go, WELD COUNTY, COLORADO o o'er yt July 31, 2014 Barbara Connolly, Controller Weld County Accounting Department PO Box 758 Greeley, CO 80631 Dear Barb: Enclosed are the second quarter 2014 Profit&Loss statement and Summary of Accounts along with the signed and notarized acknowledgement. There are no excess funds for second quarter 2014. Foreclosures continue to decrease in Weld County, good news for our citizens of Weld County. According to the Division of Housing data, foreclosure flings and auction sales in Colorado were near an eight year low for April 2014. Comparing April 2013 to April 2014, Weld County shows a 52% decrease in foreclosure filings. Also, for that same time period, Weld County experienced a 35% decrease in auction sales. As shown on the Profit& Loss, the 'Net Ordinary Income Second Quarter' is a negative $6,182.68. According to CRS 38-37-104(3), if, in any particular quarter, the Public Trustee's operating expenses exceed the fees collected in the quarter, the Public Trustee may draw on the special reserve fund to cover operating expenses for that quarter. Please let me know if you have any questions. re_y Public Trustee Enclosures Susie Velasquez,Esq. Weld County Public Trustee 1701 23t Avenue,Suite 250,Greeley,CO 80634(970) 52-4365 www.wcpto.com w. .com 2014-2455 Weld County Public Trustee Profit& Loss April to June 2014 Profit and Loss April -June 14 Ordinary Income/Expense Income 4000 Foreclosure Revenues 41,995.00 4012 Release Revenues 48,527.00 4022 Miscellaneous Revenues/Fees 3,480.94 4300 Interest Revenues 2,215.15 Total Income 96,218.09 6300 Cost of Foreclosures 19,752.61 6302 Cost of Releases 94.16 Total Cost 19,846.77 Gross Profit 76,371.32 Expense 6200 Charges for Service 2,160.88 5200 Personnel expenditures 69,622.97 6280 Operating and Maintenance 10,770.15 Total Expense 82,554.00 Net Ordinary Income Second Quarter -6,182.68 Other Income/Expense 6875 • Net Income -6,182.68 Total Other Expense 0.00 Net Other Income 0.00 SUMMARY OF ACCOUNTS WELD COUNTY PUBLIC TRUSTEE SECOND QUARTER-APRIL TO JUNE 2014 OPERATING ACCOUNT March 31, 2014 BEGINNING BALANCE $ 30,797.48 Excess cash over expense: $ (15,642.25) June 30, 2014 ENDING BALANCE $ 15,155.23 ESCROW ACCOUNT March 31, 2014 BEGINNING BALANCE $ 1,763,860.43 Excess cash over expense $(1,237,029.47) March 31,2014 ENDING BALANCE $ 526,830.96 SPECIAL RESERVE FUND March 31, 2014 BEGINNING BALANCE $ 374,116.35 Excess cash over expense $ 3,635.85 June 30, 2014 ENDING BALANCE $ 377,752.20 2nd Quarter 2014 Interest earned on Reserve $ 2,017.83 2013 Operating Exp. $ 421,888.45 WELD COUNTY PUBLIC TRUSTEE Weld County, Colorado Fourth Quarter Report of Receipts & Expenditures April to June 2014 I, Susie Velasquez, upon oath duly sworn, state that the information contained herein is true and correct to the best of my knowledge and belief. espectfully submitted, /(& u is Trustee STATE OF COLORADO ) COUNTY OF WELD ) This instrument was acknowledged before me thi . 1 da of July 2014 by Susie Velasquez as the Public Trustee for the County of Weld, State C lorad . 1 t Witness my hand and seal �`/ JULIE COLE Notary ublic NOTARY PUBLIC STATE OF COLORADO -, NOTARY ID 20134016881 MY COMMISSION EXPIRES MARCH 15,2017 Acknowledgement WELD COUNTY PUBLIC TRUSTEE FINANCIAL STATEMENTS Year Ended December 31, 2013 ANdERSON ©WIiITNE y . . . . . WELD COUNTY PUBLIC TRUSTEE FINANCIAL STATEMENTS Year Ended December 31 , 2013 TABLE OF CONTENTS Independent Auditors' Report 1 Management Discussion and Analysis 3 BASIC FINANCIAL STATEMENTS: GENERAL FUND BALANCE SHEET/STATEMENT OF NET POSITION 7 STATEMENT OF GENERAL FUND REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE/STATEMENT OF ACTIVITIES 8 BUDGETARY COMPARISON STATEMENT 9 STATEMENT OF FIDUCIARY NET POSITION 10 NOTES TO FINANCIAL STATEMENTS 11 SUPPLEMENTARY INFORMATION 18 A Professional Corporation of ��IIII \ERSONJ Certified Public Accountants • ©WhhirrNEy�, ■ ■ ■ ■ ■ Independent Auditors' Report Weld County Public Trustee Greeley, Colorado We have audited the accompanying financial statements of the governmental activities, the major fund, and the aggregate remaining fund information of the Weld County Public Trustee as of December 31, 2013, and for the year then ended, as listed in the table of contents, and the notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in 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 evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. -1- 5801 West 11th Street. Suite 300 (970) 352-7990 Greeley, Colorado 80634-4813 www.awhitney.com Weld County Public Trustee Page 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the major fund and the aggregate remaining fund information of the Weld County Public Trustee as of December 31, 2013, and the changes in its financial position and the budgetary comparison for the year then ended in conformity with accounting principles generally accepted in the United States. Other Matters Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The statement of changes in assets and liabilities-agency fund is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Weld County Public Trustee. 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. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Accounting principles generally accepted in the United States require that management discussion and analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with evidence sufficient to express an opinion or provide any assurance. July 22, 2014 -2- MANAGEMENT'S DISCUSSION AND ANALYSIS This section of the report provides readers with a narrative overview and analysis of the financial activities of the Weld County Public Trustee for the year ended December 31, 2013. We encourage readers to consider the information presented here in conjunction with the basic financial statements to enhance their understanding of the Public Trustee's financial performance. FINANCIAL HIGHLIGHTS * The Public Trustee's assets exceeded liabilities by $404,486 at December 31, 2013. * The General Fund balance was $406,588 as of December 31, 2013. This is entirely reserved for statutory purposes. * The December 31, 2013 General Fund balance is $41,701 less than the previous year. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the Public Trustee'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. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the Public Trustee's finances in a manner similar to a private sector business. The statement of net position presents information on all of the Public Trustee's assets and liabilities, with the difference between the two reported as net position. Over time, increases - or decreases in net position may serve as a useful indicator of whether the Public Trustee's financial position is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the fiscal year. All changes in net assets 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. 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. The Public Trustee, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The Public Trustee has one governmental fund, a General Fund. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. - 3 - Because the focus of governmental funds is narrower than that of the government-wide - - -- - financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide adjustments to facilitate this comparison between governmental funds and governmental activities, which are also explained in the notes. The basic governmental fund financial statements can be found on pages 7 and 8 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 the Public Trustee's own operations. The accounting used for fiduciary funds is the accrual method. The basic fiduciary fund financial statement can be found on page 10. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 11 through 16 of this report. Budgetary Comparisons. The Public Trustee adopts an annual appropriated budget for the General Fund. A budgetary comparison statement has been provided for the General Fund on page 9 of this report. • -4 - GOVERNMENT-WIDE FINANCIAL ANALYSIS Net Assets. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of December 31, 2013, assets exceeded liabilities by $404,486. The following table provides a summary of the Public Trustee's net position: December 31 2013 2012 Assets: Cash and investments $ 413,818 $ 559,608 Capital assets 1,200 2,640 Total Assets 415,018 558,248 Liabilities: Accounts payable 1,959 102,274 Accrued liabilities 5,271 5,045 Compensated absences 3,302 2,683 Total Liabilities 10,532 110,002 Net Position: Investment in capital assets 1,200 2,640 Restricted 403,286 445,606 Total Net Position $ 404,486 $ 448,246 A significant portion of the Public Trustee's net assets reflects its investment in capital assets. These assets include equipment and furniture. These capital assets are used to provide services to patrons; consequently, they are not available for future spending. An additional $403,286 of the Public Trustee's net assets represents resources that are subject to external restriction on how they may be used. Included in this category is the statutory reserve of$403,286. The following table indicates the changes in net position: Year Ended December 31 2013 2012 Revenues: General revenues: Fees $ 442,629 $ 569,985 Investment earnings 4,707 1,981 Other revenue 24,896 10,485 Total Revenues 472,232 582,451 Expenses: Program services 428,835 418,172 Excess fees to Weld County 87,157 197,777 Total Expenses 515,992 615,949 Decrease in Net Position $ (43,760) $ (33,498) - 5 - Governmental Activities. Governmental activities decreased the Public Trustee's net -- - assets by $41,701 in 2013. Key elements of this decrease are as follows: * Total revenues were $472,232, down 19% from the prior year. This is primarily due to decreased foreclosure and refinancing activity. * Expenses totaled $515,992. This represents a 16% decrease from the previous year, primarily due to decreased excess fees paid to Weld County. GENERAL FUND BUDGETARY HIGHLIGHTS The Public Trustee's budget is prepared according to Colorado statutes: Final Year Ended December 31, 2013 Budget Actual Beginning Fund Balance $ 448,289 $ 448,289 Revenue 698,000 472,232 Expenditures 671,000 513,933 Ending Fund Balance $ 475,289 $ 406,588 Actual revenue and expenditures were less than budgeted in most categories. CAPITAL ASSET ADMINISTRATION Capital Assets. The Public Trustee's investment in capital assets for its governmental type activities as of December 31, 2013, totals $1,200 (net of accumulated depreciation). This investment includes all equipment and furniture. There were no capital asset purchases for 2013. The Public Trustee implemented the straight-line depreciation method under GASB 34 for its capital assets. Additional information on the Public Trustee's capital assets can be found in Note 2 of this report. DEBT ADMINISTRATION Long-term Debt. At December 31, 2013, the Public Trustee had no long-term debt beyond compensated absences. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the Public Trustee's finances for all those with an interest in the Public Trustee's finances. Questions concerning any of the information provided or for additional financial information should be addressed to the Public Trustee, 1701 23rd Avenue, Suite 250, Greeley CO 80634. - 6 - WELD COUNTY PUBLIC TRUSTEE GENERAL FUND BALANCE SHEET/STATEMENT OF NET POSITION General Statement of December 31, 2013 Fund Adjustments Net Position ASSETS Cash and investments $ 413,818 $ - $ 413,818 Capital Assets, net: Equipment and furniture - 1,200 1,200 TOTAL ASSETS $ 413,818 1,200 415,018 LIABILITIES Accounts Payable $ 1,959 - 1,959 Accrued Liabilities 5,271 - 5,271 Compensated Absences - 3,302 3,302 Total Liabilities 7,230 3,302 10,532 FUND BALANCE/NET POSITION Fund Balances: Restricted for statutory purposes 406,588 (406,588) - Total Fund Balance 406,588 (406,588) - TOTAL LIABILITIES AND FUND BALANCE $ 413,818 Net Position: Investment in capital assets 1,200 1,200 Restricted 403,286 403,286 $ 404,486 $ 404,486 See Accompanying Notes to Financial Statements. -7- WELD COUNTY PUBLIC TRUSTEE STATEMENT OF GENERAL FUND REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES/STATEMENT OF ACTIVITIES General Statement of Year Ended December 31, 2013 Fund Adjustments Activities Revenue: Foreclosure fees $ 175,316 $ - $ 175,316 Release fees 267,313 - 267,313 Interest earnings 4,707 - 4,707 Other revenue 24,896 - 24,896 Total Revenue 472,232 - 472,232 Expenditures: Current Operating: Program Services 426,776 619 427,395 Excess fees to Weld County 87,157 - 87,157 Depreciation - 1,440 1,440 Total Expenditures 513,933 2,059 515,992 Revenue Under Expenditures/ Change in Net Position (41,701) (2,059) (43,760) Fund Balances/Net Position, Beginning of Year 448,289 (43) 448,246 Fund Balances/Net Position, End of Year $ 406,588 $ (2,102) $ 404,486 See Accompanying Notes to Financial Statements. -8- WELD COUNTY PUBLIC TRUSTEE BUDGETARY COMPARISON STATEMENT Original and Final Year Ended December 31, 2013 Actual Budget Variance Revenue: Foreclosure fees $ 175,316 $ 500,000 $ (324,684) Release fees 267,313 195,000 72,313 Interest earnings 4,707 3,000 1,707 Other revenue 24,896 - 24,896 Total Revenue 472,232 698,000 (225,768) Expenditures: Program Services: Salaries 231,272 235,240 3,968 Employee benefits 18,909 27,100 8,191 Insurance 70,133 50,000 (20,133) Office supplies 16,623 36,000 19,377 Internet/utilities 6,228 15,000 8,772 Professional services 27,719 24,000 (3,719) Dues and training 4,067 5,000 933 Office rental 27,074 28,000 926 Retirement contributions 11,223 8,000 (3,223) Contract services 3,016 5,000 1,984 Equipment maintenance/rental 8,301 13,000 4,699 Miscellaneous 2,211 7,000 4,789 Excess fees to Weld County 87,157 214,160 127,003 Total Program Services 513,933 667,500 153,567 Capital Outlay: Equipment - 3,500 3,500 Total Capital Outlay - 3,500 3,500 Total Expenditures 513,933 671,000 157,067 Revenue Over(Under) Expenditures (41,701) 27,000 (68,701) Fund Balance, January 1, 2013 448,289 448,289 - Fund Balance, December 31, 2013 $ 406,588 $ 475,289 $ (68,701) See Accompanying Notes to Financial Statements. -9- WELD COUNTY PUBLIC TRUSTEE STATEMENT OF FIDUCIARY NET POSITION December 31, 2013 Agency Fund ASSETS Cash $ 53,897 Amounts owed by attorneys 27,102 Prepaid with Weld County Clerk 4,856 Total Assets $ 85,855 LIABILITIES Amounts owed to others $ 85,855 Total Liabilities $ 85,855 See Accompanying Notes to Financial Statements. -10- WELD COUNTY PUBLIC TRUSTEE NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies: The accounting and reporting policies of the Weld County Public Trustee (the Public Trustee) conform to generally accepted accounting principles. The following summary of significant accounting policies is presented to assist the reader in evaluating the Public Trustee's financial statements. Reporting Entity: The Office of the Weld County Public Trustee (Public Trustee) acts as an intermediary and recorder for foreclosures and releases of deeds in Weld County, Colorado. The Public Trustee is appointed by the Governor. The financial statements of the Weld County Public Trustee are intended to present the financial position and the changes of financial position, as recorded in the General and agency funds attributable to the transactions of the Office of the Weld County Public Trustee. They do not purport to, and do not, present fairly the financial position of Weld County or any other County funds as of December 31, 2013. Government-wide and Fund Financial Statements: The Public Trustee reports as a special purpose government engaged in a single governmental program. The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities are supported by fees. Separate financial statements are provided for the governmental fund. Major individual governmental funds are reported as separate columns in the fund financial statements. 11 WELD COUNTY PUBLIC TRUSTEE __ NOTES TO FINANCIAL STATEMENTS NOTE 1 —Summary of Significant Accounting Policies -Continued: Measurement Focus, Basis of Accounting, and Financial Statement Presentation: The government-wide fmancial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 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 a current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be 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, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Fees and interest associated with the current year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Public Trustee. The Public Trustee reports the following major governmental fund: The General Fund is the Public Trustee's primary operating fund. It accounts for all financial resources of the Public Trustee. The Public Trustee also reports the following fund type: The Agency Fund is custodial in nature (assets equal liabilities) and does not present results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. The fund is used to account for assets held in a trustee capacity by the Office in connection with the execution of foreclosure transactions and in contracts for deed to real property. As the agency fund earns interest on funds which it is holding for others, this interest is recognized in the General Fund. - 12 - WELD COUNTY PUBLIC TRUSTEE • NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies- Continued: Capital Assets: All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Acquisitions of capital assets are recorded as capital outlay expenditures within the General Fund. Depreciation has been provided on capital assets, using straight line methods over the useful lives of the assets (large equipment 10 years and small equipment 5 years). The Public Trustee's capitalization level is $5,000. Budget: An annual budget is adopted by the Public Trustee and submitted to the Weld County Commissioners for their review. The budget is prepared on a basis consistent with generally accepted accounting principles. The fund level of classification is the level at which expenditures may not legally exceed appropriations. All annual appropriations lapse at year end. The Public Trustee is authorized to transfer budgeted amounts within departments of each fund. Any revisions that alter the total appropriation for each department must be approved by the Public Trustee through a supplemental appropriation resolution. There were no supplemental appropriations in 2013. Net Position: Net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation. Net position is reported as restricted when there are limitations imposed on the use either through the enabling legislation adopted by the Public Trustee or through external restrictions imposed by creditors, grantors, laws, or regulations of other governments. The Public Trustee first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. - 13 - WELD COUNTY PUBLIC TRUSTEE NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies- Continued: Fund Equity: In the fund financial statements, governmental funds report restrictions of fund balance for amounts that are legally restricted by law or outside parties for use for specific purposes. Restrictions for the Public Trustee are recorded up to the maximum equity available in the fund balance and consist of: Restricted — Amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, or the laws or regulations of other governments. A fund balance equal to 12 months of prior year expenditures is allowed to be maintained under State of Colorado statutes. NOTE 2- Capital Assets: Balance, Balance, 1/1/13 Additions Deletions 12/31/13 Equipment and Furniture $ 14,924 $ -- $ 7,724 $ 7,200 Total Capital Assets 14,924 -- 7,724 7,200 Less Accumulated Depreciation: Equipment and Furniture 12,284 1,440 7,724 6,000 Total Accumulated Depreciation 12,284 1,440 7,724 6,000 Capital Assets,Net $ 2,640 $ 1,440 $ -- $ 1,200 NOTE 3 - Cash and Investments: The Public Trustee's bank accounts at year-end were entirely covered by federal depository insurance or by collateral held by the Public Trustee's custodial banks under provisions of the Colorado Public Deposit Protection Act. The Colorado Public Deposit Protection Act requires financial institutions to pledge collateral having a market value of at least 102% of the aggregate public deposits not insured by federal depository insurance. Eligible collateral includes municipal bonds, U.S. government securities, mortgages and deeds of trust. - 14- WELD COUNTY PUBLIC TRUSTEE NOTES TO FINANCIAL STATEMENTS NOTE 3 - Cash and Investments—Continued: State statutes authorize the Public Trustee to invest in obligations of the U.S. Treasury and U.S. agencies, obligations of the State of Colorado or of any county, school district, and certain towns and cities therein, notes or bonds secured by insured mortgages or trust deeds, obligations of national mortgage associations, and certain repurchase agreements. At December 31, 2013, the Public Trustee had $88,179 invested in the Colorado Liquid Asset Trust (COLOTRUST), an SEC Rule 2a7-like investment pool. Investments are valued at amortized cost with each share valued at $1.00. The investment pools are routinely monitored by the Colorado Division of Securities with regard to operations and investments. COLOTRUST is rated AAAm by Standard & Poor's. NOTE 4 - Contingencies: The Public Trustee is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries; and natural disasters. The Public Trustee purchases commercial insurance for risks of loss in excess of deductible amounts. Settled claims have not exceeded this coverage in any of the past three fiscal years. NOTE 5—Leases: The Public Trustee leases office space under an operating lease. The lease agreement requires monthly rent payments of$2,256 through October 2015. Rent expense under this leases for the year ended December 31, 2013 was $27,074. The Public Trustee leases mailing equipment under an operating lease. The lease agreement requires quarterly payments of$849 through June 2015. Rent expense under the lease for the year ended December 31, 2013 was $10,188. The future minimum lease payments under all operating leases at December 31, 2013 are as follows: Year Ending December 31 Amount 2014 $ 30,470 2015 24,259 Minimum payments required $ 54,729 - 15 - WELD COUNTY PUBLIC TRUSTEE NOTES TO FINANCIAL STATEMENTS NOTE 6—Retirement Plan: Employees of the Public Trustee are eligible to participate in a Simplified Employee Pension Plan (SEP) after 90 days of employment. The Public Trustee will match employee contributions up to 8% of eligible compensation. Employees are immediately vested in all contributions to the plan. For the year ended December 31, 2013, the Public Trustee contributed$11,223 to the plan which is administered by VALIC. NOTE 7—Compensated Absences: The employees of the Public Trustee receive annual leave which may accumulate and be paid at termination of employment. Changes in compensated absences during the year were as follows: Balance Balance Due Within 01/01/13 Additions Deductions 12/31/13 One Year Compensated Absences $2,683 $ 7,003 $ 6,384 $3,302 $ NOTE 8 —Reconciliation Between General Fund Balance Sheet and the Statement of Net Position: Amounts reported in the statement of net position are different because: December 31, 2013 Fund balance of General Fund $ 406,588 Capital assets used in governmental activities are not financial resources and therefore are not reported in the General Fund 1,200 Compensated absences are not due and payable in the current year and are not reported in the General Fund (3,302) Total Net Position $ 404,486 - 16 - 1 WELD COUNTY PUBLIC TRUSTEE NOTES TO FINANCIAL STATEMENTS NOTE 9 —Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the General Fund to the Statement of Activities: Year Ended December 31 2013 Net change in fund balance—General Fund $ (41,701) Amounts reported for governmental activities in the statement of activities are different because: The general fund reports capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital outlay in the current year (1,440) Change in compensated absences (619) Change in Net Assets of Governmental Activities $ (43,760) NOTE 10—Funds Transferred to Weld County: With the enactment of Colorado House Bill No.1252 on July 1, 1988, the Public Trustee is required to retain all excess revenue over operational expenditures until the excess funds accumulate to the level of the prior year's total operating expenditures. When the accumulation reaches the required level, any amount exceeding this level must be submitted to the Weld County Treasurer. Amounts transferred to Weld County as a result of this statute totaled $87,157 in 2013. - 17 - SUPPLEMENTARY INFORMATION - 18 - WELD COUNTY PUBLIC TRUSTEE STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUND Beginning Ending Balance Balance Year Ended December 31, 2013 1/1/2013 Additions Deletions 12/31/2013 Assets: Cash $ - $ 22,599,365 $ 22,545,468 $ 53,897 Amounts owed by attorneys 28,406 23,312 24,616 27,102 Prepaid with Weld County Clerk 11,674 200,027 206,845 4,856 Total Assets 40,080 22,822,704 22,776,929 85,855 Liabilities: Amounts owed to others 40,080 22,169,355 22,123,580 85,855 Total Liabilities $ 40,080 $ 22,169,355 $ 22,123,580 $ 85,855 -19- Hello