FY1996 Audit Report AirportAIRPORT AUTHORITY OF THE
CITY OF BLAIR
SEPTEMBER 30, 1996
EDWARD W. SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET
BOX 486
BLAIR, NEBRASKA 68008
Airport Authority of the
City of Blair
218 S. 16th Street
Blair, NE 68008
February 14, 1997
"Independent Auditor's Opinion"
RESIDENCE:
(402) 468-S2S3
OFFICE:
(402) 426-4080
I have audited the general purpose financial statements of the Airport
Authority of the City of Blair, as of September 30, 1996, and for the fourteen
months then ended. These financial statements are the responsibility of the
Authority. My responsibility is to express an opinion on these financial
statements based on my audit.
I conducted my audit in accordance with generally accepted auditing
standards and GOVERNMENT AUDITING STANDARDS. Those standards require that I
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining on a test basis evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management as well as
evaluating the overall financial statement presentation. I believe that my
audit provides a reasonable basis for my opinion.
In my opinion the general purpose financial statements referred to above
present fairly in all material respects the financial position of the Airport
Authority of the City of Blair, as of September 30, 1996, and the results of
its operations and changes in fund balances for the fourteen months then ended
in conformity with generally accepted accounting principles.
Edward W. Schroeder
Certified Public Accountant
EDWARD W. SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET
BOX 486
BLAIR, NEBRASKA 68008
RESIDENCE:
(402) 468-5253
OFFICE:
(402) 4264080
AIRPORT AUTHORITY OF THE
CITY OF BLAIR
COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS
SEPTEMBER 30 1996
ASSETS
General Fund General Fixed Assets
CASH IN CHECKING $50,345 -
DUE FROM THE COUNTY
TREASURER
REAL ESTATE AND EQUIPMENT
TOTAL ASSETS
GENERAL FIXED ASSETS
FUND BALANCE - UNRESERVED
TOTAL LIABILITIES AND
FUND BALANCES
1,232 -
$195,743
$51,577 $195,743
LIABILITIES AND FUND BALANCES
- $195,743
$51,577 -
$51,577 $195,743
See Notes to Financial Statements.
-2-
AIRPORT AUTHORITY OF THE
CITY OF BLAIR
STATEMENT OF REVENUES, AND EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET (CASH BASIS) AND ACTUAL
FOR THE FOURTEEN MONTHS ENDED SEPTEMBER 30 1996
See Notes to Financial Statements.
-3-
Variance
Favorable
(Unfavorable)
$ 8,168
1,068
-0-
44
(24,050)
24
636
(1,576,800)
(423,200)
(2,014,110)
810
2,391
500
1,337
6,086
32,703
4,380
100
2,500
310
1,000
281
(91)
2,000,000
2,052,307
$ 38,197
Budget
Actual
REVENUES:
Property taxes
$ 24,038
$32,206
Homestead exemption
-0-
1,068
In -lieu of tax
1,000
1,000
Motor Vehicle pro -rate
100
144
Rent income
32,500
8,450
Gas sales
50
74
Interest
400
1,036
Grants
1,576,800
-0-
Loans
423,200
-0-
Total revenues
2,058,088
43,978
EXPENDITURES;
Insurance
5,600
4,790
Utilities and telephone
4,720
2,329
Dues and training
500
-0-
Maintenance and repair
2,000
663
Legal
7,500
1,414
Engineering/appraisal
40,000
7,297
Mowing/snow
4,800
420
Janitorial
100
-0-
Sand/rock/gravel
2,500
-0-
Audit fees
1,000
690
Equipment rental
1,000
-0-
Office Expense
600
319
County commission
238
329
Capital outlay - land
2,000,000
-0-
Total expenditures
2,070,558
18,251
REVENUES AND OTHER SOURCES OVER
(UNDER) EXPENDITURES AND OTHER
USES
(12,470)
25,727
FUND BALANCE - July 31, 1995
25,850
25,850
FUND BALANCE - September 30, 1996
$ 13,380
$51,577
See Notes to Financial Statements.
-3-
Variance
Favorable
(Unfavorable)
$ 8,168
1,068
-0-
44
(24,050)
24
636
(1,576,800)
(423,200)
(2,014,110)
810
2,391
500
1,337
6,086
32,703
4,380
100
2,500
310
1,000
281
(91)
2,000,000
2,052,307
$ 38,197
AIRPORT AUTHORITY OF THE
CITY OF BLAIR
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
FOR THE FOURTEEN MONTHS ENDED SEPTEMBER 30 1996
Balance
July 31,
1995 Additions Dispositions
FIXED ASSETS:
Real estate $137,069 $ 7,297
Equipment 51,377 -
TOTALS $188,446 7,297
See Notes to Financial Statements
-4-
Balance
Sept 30,
1996
$144,366
51,377
$195,743
AIRPORT AUTHORITY OF THE
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting:
All governmental fund types are accounted for using the
modified accrual basis of accounting. Their revenues are recognized
when earned and expenditures are recognized when incurred except in
the case of property tax revenues recognized when received, and in
the recording of interest on general obligation bonds only when the
coupons mature.
The Authority does not apply encumbrance accounting on any of
its funds.
The Authority was activated by The City of Blair Resolution
1993-22 as of August 1, 1993 and pursuant to Sec.3-503RRS NEB. the
City of Blair conveyed to the Authority its existing airport
facilities.
B. Fixed Assets:
All fixed assets are recorded at cost or estimated fair value
if actual cost is not available. Assets are recorded as
expenditures at the time of purchase with accumulated costs being
presented in the general fixed assets group of accounts for
measurement purposes only. No depreciation is provided for assets
in the general fixed asset group of accounts.
C. Rental Income:
The Authority receives rental income from its land and buildings
not in use by the authority. The rents are on an annual or monthly
basis.
2. PROPERTY TAX CALENDAR
The Airport Authority levy date is December 31 with tax due in
halves on May and September of the following year. The December 31,
1995 valuation was $204,487,657. The tax levey for the fourteen
months ended September 30, 1996 was $24,751.
3. SUBSEQUENT EVENT
The Airport Authority entered into a purchase agreement to
u
purchase a new airport (EAGLE FIELD) at Highway 133 south of Blair
for $1,200,000. The property was purchased October 10, 1996. The
old airport on Highway 75 north of Blair was closed effective
January 1, 1997.
-5-
EDWARD W. SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET
BOX 486
BLAIR, NEBRASKA 68008
Airport Authority of the
City of Blair
218 S. 16th Street
Blair, NE 68008
Gentlemen:
I have audited the general
Authority of the City of Blair,
1996, and have issued my report
RESIDENCE:
(402) 468-5253
OFFICE:
(402) 426-4080
February 14, 1997
purpose financial statements of the Airport
for the fourteen months ended September 30,
thereon dated February 14, 1997.
I have conducted my audit in accordance with generally accepted auditing
standards and GOVERNMENT AUDITING STANDARDS. Those standards require that I
plan and perform the audit to obtain reasonable assurance about whether the
general purpose financial statements are free of material misstatement.
In planning and performing my audit of the general purpose financial
statements of the Airport Authority of the City of Blair for the fourteen
months, ended September 30, 1996, I considered its internal control structure
in order to determine my auditing procedures for the purpose of expressing my
opinion on the general purpose financial statements and not to provide
assurance on the internal control structure.
The management of the Airport Authority of the City of Blair is respon-
sible for establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal control
structure policies and procedures. The objectives of an internal control
structure are to provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use or
disposition, and that transactions are executed in accordance with management's
authorization and recorded properly to permit the preparation of financial
statements in accordance with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may nevertheless occur and not be detected. Also, projection of
any evaluation of the structure to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of policies and procedures may
deteriorate.
-6-
Page 2
For the purpose of this report, I have classified the significant internal
control structure policies and procedures in the following categories:
Accounting Controls
Administrative Controls
Cycles of the Entities' Activity General Requirements
Treasury or financing Political activity
Revenue/receipts Davis -Bacon Act
Purchases/disbursements Civil Rights
External financial reporting Cash management
Federal financial reports
Financial Statement Captions
Cash and cash equivalents
Receivables
Inventory
Property and equipment
Payables and accrued liabilities
Debt
Fund balance
Accounting Applications
Billings
Receivables
Cash receipts
Purchasing and receiving
Accounts payable
Cash disbursements
Payroll
Inventory control
Property and equipment
General ledger
Specific Requirements
Types of services
Eligibility
Matching level of effort
Reporting
Cost allocation
Special requirements, if any
For all of the internal control structure categories listed above, I
obtained an understanding of the design of relevant policies and procedures and
whether they have been placed in operation, and I assessed control risk.
I noted certain matters involving the internal control structure and its
operation that I consider to be reportable conditions under standards
established by the American Institute of Certified Public Accountants.
Reportable conditions involve matters coming to my attention relating to
significant deficiencies in the design or operation of the internal control
structure that, in my judgment, could adversely affect the entity's ability to
record, process, summarize, and report financial data consistent with the
assertions of management in the general purpose financial statements.
The Airport Authority of the City of Blair does not have adequate
segregation of duties.
-7-
Page 3
A material weakness is a reportable condition in which the design or
operation of one or more of the internal control structure elements does not
reduce to a relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the general purpose financial
statements being audited may occur and not be detected within a timely period
by employees in the normal course of performing their assigned functions.
My'consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be reportable
conditions and, accordingly, would not necessarily disclose all reportable
conditions that are also considered to be material weaknesses as defined above.
However, I believe none of the reportable conditions described above is a
material weakness.
This report is intended for the information of management, and the Airport
Authority of the City of Blair Board. However, this report is a matter of
public record and its distribution is not limited.
�v
Edward W. Schroeder
Certified Public Accountant
IM
s
1904 SOUTH STREET
BOX 486
i BLAIR, NEBRASKA 68008
EDWARD W. SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
February 14, 1997
Airport Authority of the
City of Blair
218 S. 16th Street
Blair, NE 68008
RESIDENCE:
(402) 468-5253
OFFICE:
(402) 426-4080
I have audited the general purpose financial statements of the Airport
Authority of the City of Blair, as of and for the fourteen months ended
September 30, 1996, and have issued my report thereon dated February 14, 1997.
I conducted my audit in accordance with generally accepted auditing
standards and GOVERNMENT AUDITING STANDARDS issued by the Comptroller General
of the United States. Those standards require that I plan and perform the
audit to obtain reasonable assurance about whether the general purpose
financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the
Airport Authority of the City of Blair, is the responsibility of the
Authorities management. As part of obtaining reasonable assurance about
whether the general purpose financial statements are free of material
misstatement, I performed tests of the Authorities compliance with certain
provisions of laws, regulations, contracts, and grants. However, the objective
of my audit of the financial statements was not to provide an opinion on
overall compliance with such provisions. Accordingly, I do not express such an
opinion.
The results of my tests indicate that, with respect to the items tested,
the Airport Authority of the City of Blair, complied, in all material
respects, with the provisions referred to in the preceding paragraph. With
respect to items not tested, nothing came to my attention that caused me to
believe that the Authorities had not complied, in all material respects with
those provisions.
This report is intended for the information of the management, and the
Authority Board, However, this report is a matter of public record and its
distribution is not limited,
1�
Edward W. Schroeder
Certified Public Accountant
M