FY2000 Audit Report AirportBLAIR AIRPORT AUTHORITY
SEPTEMBER 30, 2000
EDWARD W. SCEIROE'DER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET
BOX 486
BLAIR, NEBRASKA 68008
Honorable Chairman and Members
of the Blair Airport Authority Board
Blair, Nebraska
"Independent Auditor's Report"
Gentlemen:
January 15, 2001
RESIDENCE:
(402) 468-5253
OFFICE:
(402) 42.6-4080
I have audited the accompanying general purpose financial statements of the Blair Airport Authority, as of and
for the year ended September 30, 2000. 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
whether the general purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial
statements. An audit also includes assessing 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.
In my opinion, the general purpose financial statements referred to above present fairly, in all material
respects, the financial position of the Blair Airport Authority as of September 30, 2000, 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 15,
2001, on my considerations of the Blair Airport Authority'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 information 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 procedures applied in the audit of the
general purpose, combining, and individual fund and account group financial statements and, in my
opinion, is fairly presented in all material respects in relation to the financial statements of each of the
respective individual funds and account groups taken as a whole.
N
Edward W. Schroeder
Certified Public Accountant
BLAIR AIRPORT AUTHORITY
COMBINED BALANCE SHEET - ALL FUND AND ACCOUNT GROUPS
SEPTEMBER 30, 2000
ASSETS
Cash equivalents
Accounts Reveivable
Due from the County Treasurer
Real Estate and Equipment
Amount to be provided for retirement
of general long-term debt
TOTAL ASSETS
LIABILITIES
Warrants payable
Deposits payable
Bond payable
TOTAL LIABILITIES
FUND EQUITY
General fixed assets
Fund balance - Unreserved
Total Fund Equity
TOTAL LIABILITIES AND
FUND EQUITY
General
General General Long -Term
Fund Fixed Assets Debt
$ 70,226 $ 0 $ 0
0 0 0
1,986 0 0
0 1,370,187 0
0 0 500,000
$ 72,212 $ 1,370,187 $ 500,000
$ 43,741 $ 0
1,190 0
0 0
44,931 0
$ 0
0
500,000
500,000
0 1,370,187 0
27,281 0 0
$ 27,281 $ 1,370,187 $ 0
$ 72,212 $ 1,370,187 $ 500,000
See Notes to Financial Statements
2
BLAIR AIRPORT AUTHORITY
STATEMENT OF REVENUES AND EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30.2000
REVENUES:
Property taxes
Interest on taxes
Motor vehicle tax
In Lieu of tax
Rent income
Gas sales
Interest
Grants
Bond proceeds
Total revenues
EXPENDITURES:
Audit fees
County commission
Dues and training
Engineering
Equipment rental
Gas/Oil/Diesel
Insurance
Janitorial
Legal
Maintenance and repair
Mowing/snow
Office expense
Printing & publications
Travel
Utilities
Capital outlay
Bond principal
Bond interest
Total expenditures
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER USES
Actual
$ 44,119
415
5,959
2,125
43,684
31,231
498
1,950
0
129,981
1,990
916
0
50,513
0
29,397
7,070
1,305
214
4,779
5,370
103
295
422
2,243
0
20,000
27,233
151,850
(21,869)
Budget
$ 46,024
0
150
1,200
42,000
20,000
1,000
1,344,780
101,220
FUND BALANCE - September 30, 1999 49,150
FUND BALANCE - September 30, 2000 $ 27,281
f
t See Notes to Financial Statements
3
1,556,374
1,600
455
800
60,000
800
15,000
7,000
600
6,000
10,500
7,500
300
300
0
3,300
1,416,000
20,000
35,233
1,585,388
(29,014)
49,150
$ 20,136
Variance
Favorable
(Unfavorable)
$ (1,905)
415
5,809
925
1,684
11,231
(502)
(1,342,830)
(101,220)
(1,426,393
(390)
(461)
800
9,487
800
(14,397)
(70)
(705)
5,786
5,721
2,130
197
5
(422)
1,057
1,416,000
0
8,000
1,433,538
$ 7,145
FIXED ASSETS
Real estate
Equipment
TOTAL
BLAIR AIRPORT AUTHORITY
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
FOR THE TWELVE MONTHS ENDED SEPTEMBER 30.2000
Balance
Sept. 30,
Additions Dispositions
$ 1,357,155 $ 0 $
13,032 0
$ 1,370,187 $ 0 $
See Notes to Financial Statements
4
Balance
Sept. 30,
0 $ 1,357,155
0 13,032
0 $ 1,370,187
BLAIR AIRPORT AUTHORITY
STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT
FOR THE YEAR ENDED SEPTEMBER 30, 2000
Balance
Interest Sept 30,
4.00-5.80% $ 520,000 $
See Notes to Financial Statements
5
Balance
Sept 30,
0 $ 20,000 $ 500,000
Year Ending
September 30^
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
BLAIR AIRPORT AUTHORITY
STATEMENT OF GENERAL OBLIGATION BONDS
PRINCIPAL AND INTEREST REQUIREMENTS
BY YEAR OF MATURITY
SEPTEMBER 30, 2000
Principal
Interest
Requirements
Requirements
Total
$ 20,000
$ 26,342 $
46,342
20,000
25,432
45,432
20,000
24,502
44,502
0
20,000
23,552
43,552
25,000
22,460
47,460
25,000
21,223
46,223
0
25,000
19,960
44,960
25,000
18,672
43,672
30,000
17,227
47,227
0
30,000
15,622
45,622
30,000
13,987
43,987
35,000
12,182
47,182
0
35,000
10,214
45,214
35,000
8,227
43,227
40,000
6,080
46,080
0
40,000
3,770
43,770
45,000
1,305
46,305
$ 500,000 $ 270,757 $ 770,757
See Notes to Financial Statements
6
BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
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 accounting principles
and practices are discussed in subsequent sections of this note. The remainder of the
notes are organized to provide explanations including required disclosures of the
Airport's financial activities for the fiscal year ended September 30, 2000.
B. Reporting Entity:
All significant activities and organizations in which the Airport exercises oversight
responsibility have been included in the Airport general p urpose financial statements for
the year ended September 30, 2000. 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.
0
BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
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 expenditures are
recognized when incurred except that property taxes are not recorded until collected as
they are not practicably measurable and interest 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 generally 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, 2000.
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 sidewalks, drainage systems, and lighting
systems are not capitalized. No depreciation is provided for assets in the general fixed
asset group of accounts.
BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
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 restrictions. The deposits are entirely
Category 1 which means that the investments 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, 1999 valuation was $306,891,630. The levy for the Airport for
the year ending September 30, 2000 was .02 per $100 of value. The total tax levy was
$47,389. 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.
4. RISK MANAGEMENT
The Airport is exposed to various risks of loss related to torts; theft, damage to and
destruction to assets; errors and omissions; injuries to employees; and natural disasters.
These risks are covered by the purchase of commercial insurance. The Airport assumes
liability for any deductibles and claims in excess of coverage limitations. Settled claims from
these risks have not exceeded commercial insurance coverage in any of the post three fiscal
years.
5. REGISTERED WARRANTS
The Airport has $43,741 of outstanding registered warrants at September 30, 2000. The
warrants are due currently and bear an average interest rate of 4.73%. The accrued interest
at September 30, 2000, was $452.
N
EDWARD W. SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET RESIDENCE:
BOX 486 (402) 468-5253
BLAIR, NEBRASKA 68008 OFFICE:
(402) 426-4080
January 15, 2001
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, 2000, and have issued my report thereon dated January 15, 2001. 1 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.
Compliance
As part of obtaining reasonable assurance about whether Blair Airport Authority'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
andmaterial effect on the determination 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 noncompliance 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 procedures 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 assigned 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 reportable 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
Blair Airport Authority
Schedule of Findings
Year ended September 30, 2000
INSTANCES OF NON-COMPLIANCE:
No matters were noted.
REPORTABLE CONDITIONS:
Segregation of Duties — One important aspect of internal control is the segregation of
duties among employees to prevent an individual employee from handling duties which
are incompatible. The cash receipts listing, bank deposits and the posting of the cash
receipts to the cash receipts journal are all done by the same person.
Recommendation - We realize that with a limited number of office employees,
segregation of duties is difficult. However, the Airport should review its control
procedures to obtain the maximum internal control possible under the circumstances.
Response.— We will consider this.
Conclusion — Response acknowledged. The Airport could segregate duties to the
extent possible with existing personnel and utilize the board to provide additional control
through review of financial transactions and reports.
12