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"
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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.
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FUND BALANCE - September 30, 1999
See Notes to Financial Statements.
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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.
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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
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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
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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
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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.
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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.
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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
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