Loading...
FY1999 Audit Report AirportBLAIR AIRPORT AUTHORITY SEPTEMBER 30, 1999 1904 �OU'FH STREET BOX 436 BLAIR, NEBRASKA 63003 Honorable Chairman and Members of the Blair Airport Authority Board Blair, Nebraska Gentlemen: January 3, 2000 "Independent Auditor's Report" (Zs 0i) ZI 68-;,,'.!, 3 OFFJ( :: (ttW,') J26.4636 I have audited the accompanying general purpose financial statements of the Blair Airport Authority, as of and for the year ended September 30, 1999. These general purpose financial statements are the responsibility of the Blair Airport Authority's management. My responsibility is to express an opinion on these general purpose financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards 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 I plan and perform the audit to obtain reasonable assurance about wheth- er the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and dis- closures in the general purpose financial statements. An audit also includes assess- ing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. k In my opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Blair Air- port Authority as of September 30, 1999, and for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, I have also issued my report dated January 3, 2000, on my considerations of the Blair Airport Authori- ty's internal control over financial reporting and my tests of its compliance with certain provisions of laws, regulations, contracts and grants. My audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining and individual fund and account group financial statements. The accompanying financial informa- tion listed as supporting schedules is presented for purposes of additional analysis and is not a required part of the financial statements of the Blair Airport Authority. Such information has been subjected to the auditing pro- cedures applied in the audit of the general purpose, combining, and individual fund and account group financial statements and, in my opinion, is fairly pre- sented in all mat=er.i.al respects in relation to the financial- statements of each of the respective individual funds and account groups taken as a whole. 2::�2w�,r4W. Schroeder Certified Public Accountant BLAIR AIRPORT AUTHORITY COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS SEPTEMBER 30, 1999 ASSETS General General General Fund Fixed Assets Long -Term Debt Cash equivalents $46,933 - - Accounts Receivable - - - Due from the County Treasurer 2,567 - - Real Estate and Equipment - $1,370,187 - Amount to be provided for retirement of general long-term debt - - $520,000 TOTAL ASSETS 549,500 $10,187 $520,000 LIABILITIES Deposits payable $ 350 - - Bonds payable - - $520,000 FUND EQUITY General fixed assets - $1,370,187 - Fund balance - Unreserved $49,150 - - Total Fund Equity $49,150 $1,370,187 $ - TOTAL LIABILITIES AND FUND EQUITY 549,500 51,370,187 5520,000 See Notes to Financial Statements. -2- FUND BALANCE - September 30, 1999 See Notes to Financial Statements. -3- BLAIR AIRPORT AUTHORITY STATEMENT OF REVENUES AND EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1999 L Variance REVENUES: Budget Actual Favorable (Unfavorable) Property taxes Motor vehicle tax $ 30,965 $ 29,565 $ (1,400) In -lieu of tax 2,680 4,966 2,286 " Rent income 1,000 1,569 569 Gas sales 0,700 43,150 2,450 Interest 2 20,000 21,635 1,635 Grants 1,500 1,090 (410) Bond proceeds 1,344,780 0 (1,34.4,780) 201,220 0 (201, 220) Total revenues 1,642,845 101,975 (1,540,870) EXPENDITURES: Audit fees County commission 1, 6.00 1,900 (300) Dues and training 900 617 283 Engineering 900 0 900 Equipment rental 52,000 1,680 50,320 Gas/Oil/Diesel 1,000 237 763 Insurance 15,000 13,999 1,001 Janitorial 8,000 6,767 1,233 Legal 400 1,458 (1,058) Maintenance and repair 7,500 10,500 12 7,488 Mowing/snow 8,548 1,952 Office expense 7,500 7,940 (440) Printing & publications 300 277 23 Travel 400 1,331 (931) Utilities 100 (100) Capital outlay2,353 3,-600 1,425,000 1,247 Bond principal 115,000 23,367 1,401,633 Bond interest 15,000 100,000 Total expenditures 35,991 1,685,591 27,991 113,577 8,000 1,572,014 REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (42,746) (11,602) $ 1.144 FUND BALANCE - September 30, 1998 60,752 60,752 FUND BALANCE - September 30, 1999 See Notes to Financial Statements. -3- BLAIR AIRPORT AUTHORITY STATEMENT OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 1999 Balance Balance Sept 30, Sept 30, 1998 Additions Dispositions 1999 FIXED ASSETS: Real estate $1,333,788 $ 23,367 $ $1,357,155 Equipment 13,032 - - 13,032 TOTALS 51.346.820 S 23.367 $ - $1,370.187 See Notes to Financial Statements -4- BLAIR AIRPORT AUTHORITY STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT FOR THE YEAR ENDED SEPTEMBER 30, 1999 Balance Balance Interest Sept 30 Sept 30 Dated Description Rate 1998 Additions Deductions 1999 12/1/96 Airport Authority Bonds 4.0-5.8 $535,000 $ - $ 15,000 $520,000 See Notes to Financial Statements -5- BLAIR AIRPORT AUTHORITY STATEMENT OF GENERAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS BY YEAR OF MATURITY SEPTEMBER 30, 1999 Year Ending Principal Interest September 30, Requirements Requirements Total 2000 $ 20,000 $ 27,232 $ 47,232 2001 20,000 26,342 46,342 2002 20,000 25,432 45,432 2003 20,000 24,502 44,502 2004 20,000 23,552 43,552 2005 25,000 22,460 47,460 2006 25,000 21,223 46,223 2007 25,000 19,960 44,960 2008 25,000 18,672 43,672 2009 30,000 17,227 47,227 2010 30,000 15,622 45,622 2011 30,000 13,987 43,987 2012 35,000 12,182 47,182 2013 35,000 10,214 45,214 2014 35,000 8,227 43,227 2015 40,000 6,080 46,080 2016 40,000 3,770 43,770 2017 45,000 1,305 46,305 See Notes to Financial Statements -6- BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Introduction: The Blair Airport Authority (Airport) complies with Generally Accepted Accounting Principles, (GAAP). The Airport's reporting entity applies relevant Governmental Accounting Standards Board (GASB) pronouncements. The accounting and reporting framework and the more significant ac- counting principles and practices are discussed in subsequent sections of this note. The remainder of the notes are organized to provide explana- tions including required disclosures of the Airport's financial activities for the fiscal year ended September 30, 1999. B. Reporting Entity: All significant activities and organizations in which the Airport exercises oversight responsibility have been included in the Airport gener- al purpose financial statements for the year ended September 30, 1999. The following criteria regarding manifestation of oversight were considered by the Airport in its evaluation of Airport organizations and activities: Financial interdependency: The Airport is responsible for its debts and is entitled to surpluses. No separate agency receives a financial benefit nor imposes a financial burden on the Airport. Election of the government authority: The locally elected Airport Authority Board is exclusively responsible for all public decisions and accountable for the decisions it makes. C. Fund Types and Account Groups: Governmental fund types: Governmental funds use the current financial resources measurement focus. Only current assets and current liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available resources during a given period. Account groups: The account groups are used to account for fixed assets and long-term liabilities which are not reported in the respective governmental funds. -7- BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Basis of Accounting: All Governmental Funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when earned and expen- ditures are recognized when incurred except that property taxes are not recorded until collected as they are not practicably measurable and inter- est on general obligation bonds is not recorded until coupons mature. The Airport does not apply encumbrance accounting in any of its funds. E. Budgetary Basis: The Airport's legally adopted budget is not in conformity with general- ly accepted accounting principles. The budget is prepared and adopted using the cash basis of accounting whereby revenues budgeted are expected to be received rather than earned and expenditures budgeted are expected to be disbursed rather than incurred. There are no significant differences between the budgeted basis of accounting and the generally accepted basis. The Airport Board sets the property tax levy needed to support the coming years budget in August of each year and submits its budget as required by State Statute. F. Budgetary Control: Each funds appropriated budget is prepared on a detailed line item basis. Revenues are budgeted by source. Expenditures are budgeted by department. This constitutes the legal level of control. Expenditures may not exceed appropriations at this level. All budget revisions at this level are subject to final review by the Airport Board. No revisions to the budget were made for the year ended September 30, 1999. G. Cash and Cash Equivalents: For the purposes of the Statement of Cash Flows the Airport considers all short-term debt instruments purchased with a maturity of three months or less to be cash equivalents. H. Fixed Assets: All fixed assets are recorded at cost or estimated cost if actual cost not available. Assets in general fixed asset funds are recorded as expenditures at the time of purchase with the accumulated cost being presented in the general fixed asset group of accounts for measurement purposes only. Certain improvements such as roads, bridges, curbs and gutters, streets and side- walks, drainage systems, and lighting systems are not capitalized. No depreciation is provided for assets in the general fixed asset group of accounts. -continued- BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I. Deposits and Investments: Investments consist of Certificates of Deposit or U.S. Government Securities with current maturities. These investments have no restric- tions. The deposits are entirely Category 1 which means that the invest- ments are insured or collateralized with securities held by the entity's agent. Investments are stated at cost which approximates market value. Investments allowed are generally U.S. Government Securities, FDIC insured deposits and others provided by State Statute. J. Compensated Absences: The Airport Authority does not accrue compensated absences because the Airport Authority has no employees. 2. PROPERTY TAX CALENDAR The Airport's December 31, 1998 valuation was $239,352,246. The levy for the Airport for the year ending September 30, 1999 was .012937 per $100 of value. The total tax levy was $30,965. Property taxes are due December 31 of each year and delinquent in halves at May 1 and September 1 of the following year. 3. CONCENTRATION OF CREDIT RISK All of the receivables of the Blair Airport Authority are from the local Blair area therefore creating a concentration of credit risk. If the Blair area economy was depressed this could have an adverse effect on the collection of the outstanding accounts receivable. CI.RTIFIEI> 11UBLIC A(COLNITANT 1904 )OUTI I ,`_y' RFIET RI >I1)E:NCF. BLA.IR, NEBRASKA G8)00(1 OFFICE:: (JU) /126_408)o January 3, 2000 Honorable Chairman and Members of the Airport Authority Board Blair, Nebraska "Compliance and Internal Control over financial reporting" Dear Gentlemen: I have audited the financial statements of the Blair Airport Authority as of and for the year ended September 30, 1999, and have issued my report thereon dated January 3, 2000. I conducted my audit in accordance with generally accepted audit- ing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Blair Airport Authori- ty's financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determina- tion of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit and, accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncom- pliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing my audit, I considered Blair Airport Authority's internal control over financial reporting in order to determine my auditing pro- cedures for the purpose of expressing my opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, I noted certain matters involving the internal control over financial reporting and its operation that I consider to be reportable conditions. Reportable conditions involve matters coming to my attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in my judgment, could adversely affect the Blair Airport Authority's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. The Blair Airport Authority does not have adequate separation of duties. -10- Honorable Chairman and Members of the Airport Authority Board Page 2 A material weakness is a condition in which the design or cooperation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements 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 as- signed functions. My consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all report- able conditions that are also considered to be material weaknesses. However, the reportable conditions described above I consider to be material weaknesses. The condition, criteria, effect and cause is the lack of separation of duties due to the small size of the entity. This report is intended solely for the information and the use of the audit committee, management, others within the organization, board members, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Edward W. Schroeder Certified Public Accountant -11-