FY2001 Audit Report AirportN A �- � i � • r
SEPTEMBER 30, 2001
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CERTIFIED PUBLIC ACCOUNTANT
199 ` E)!)'I'l l 5TRUT'T
B W11 186
I�t,l-a,lii, �\1I,I3iRA')K-A E)8008
Honorable Chairman and Members
of the Blair Airport Authority Board
Blair, Nebraska
"Independent Auditor's Report"
Gentlemen:
December 20, 2001
RESIDENCE:
(402) 163-5253
OFFICE:
(402) d26-4080
I have ,audit=:d the accompanying general purpose financial stater rents of the Blair Airport Authority, as of and
for the year ended September 30, 2001. These general purpose financial statement_ 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. Art 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, 2001, 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 December 20,
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.
�Edward
W. chroeder
Certified Public Accountant
BLAIR AIRPORT AUTHORITY
COMBINED BALANCE SHEET - ALL FUND AND ACCOUNT GROUPS
September 30, 2001
ASSETS
Cash equivalents
Accounts Reveivable
Due from the County Treasurer
Real Estate and Equipment
Amount tc, 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 - Reserved
Fund balance - Unreserved
Total Fund Equity
TOTAL LIABILITIES AND
FUND EQUITY
General General
Fund Fixed Assets
$ 274,717 $ 0 $ 0
0 0 0
2,055 0 0
0 1,220,086 0
0 0 480,000
$ 276,772 $ 1,220,086 $ 480,000
General
Long -Term
Debt
$ 24,687 $ 0 $ 0
1,330 0 0
0 _ 0 480,000
26,017 0 480,000
0 1,220,086 0
236,000 0 0
14,755 0 0
$ 250,755 $ 1,220,086 $ 0
$ 276,772 $ 1,220,086 $ 480,000
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, 2001
REVENUES:
Property taxes
Interest on taxes
Nilotor vehicle pro -rata
C;arline tax
Property tax credits
State aid
Homestead exemption
Miscellaneous income
In Lieu of tax
Rent incorne
Gas sales
Interest
Grants
Total revenues
EXPENDITURES:
Actual Budget
$ 46,799`
$ 471727
203 r .
50
217
50
'121
50
744•
0
0
2,000
2,190 '
0
0
1,080
2,181
1,:x:00
32,301
42,500
24,564/
24,000
2,612
900
35:1 At 1
1,860,000
14-17043 1,979,557
Audit fees
1,900
County commission
968
Dues and training
0
Engineering
6,218
Equipment rental
0
Gas/Oil/Diesel
18,713
Insurance
7,512
Janitorial
2.235
Legal
52
Maintenance and repair
60,462
Mowing/snow
7,52,
Office expense
515
Printing & publications
645
Travel
1,918
Utilities
3,246
Capital outlay
0 r
Bond principal
20,000
Bond interest
27,657
Total expenditures
159,569
- continued -
See Notes to Financia`I Statements
3
2,000
935
0
(i0,000
500
22,000
7,500
800
6,000
22,500
7,200
200
500
1,600
2,900
1,930,000
20,000
35,793
2,120,428
Variance
Favorable
Unfavorable)
$ (92.8)
153
167
71
744
(2,000)
2,190
('1,080)
981
(10,199)
564
1,712
(1,824,889)
(1,832,514)
100
(33)
0
53,782
500
3,287
(12)
-1,435)
5,948
(37,962)
(328)
(315)
(145)
(318)
(346)
1,930,000
0
_ 8.,136
1.960,859
BLAIR AIRPORT AUTHORITY
STATEMENT OF REVENUES AND EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2001
- continued -
EXPENDITURES OTHER
FINANCING SOURCES (USES):
Sale of assets
Bond proceeds
REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER USES:
FUND BALANCE - September 30, 2000
FUND BALANCE - September 30, 2001
Variance
Favorable
Actual Budget (Unfavorable)
$ (12,526) (140,871) $ 128,345
236,000 0 236,000
0 1401000 (140,000)
223,474 (871) $ 224,345
27,281 27,281
$ 250,755 $ 26,410
See Notes to Financial Statements
4
FIXED ASSETS
Real estate
Equipment
TOTAL
BLAIR AIRPORT AUTHORITY
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
OR THE TWELVE MONTHS ENDED SEPTEMBER 30. 2001
Balance
Sept. 30,
Balance
Sept. 30,
Additions Dispositions 2001
$ 1,357,155 $ 0 $ 137,069 $ 1,220,086
13,032 0 13,032 0
$ 1,370,187 $ 0 $ 150,10.1 $ 1,220,086
See Notes to Financial Statements
5
BLAIR AIRPORT AUTHORITY
STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT
FOR THE YEAR ENDED SEPTEMBER 30, 2001
Balance
Interest Sept 30,
Dated Description Rate 2000 Additions Deductions
12/1/96 Airport Authority
Bonds 4.00-5,80% $ 500,000 $
See Notes to Financial Statements
6
Balance
Sept 30,
0 $ 20,000 $ 480,000
See Notes to Financial Statements
7
BLAIR AIRPORT AUTHORITY
STATEMENT OF GENERAL OBLIGATION BONDS
PRINCIPAL AND INTEREST REQUIREMENTS
BY YEAR OF MATURITY
September 30, 2001
Year Ending
Principal
Interest
September 30,
Requirements
Requirements
Total
2002
$ 20,000
$ 25,432
$ 45,432.
2003
20,000
24,502
44,502
2004
20,000
23,552
43,552
0
2005
25,000
22,460
47,460
2006
25,000
21,223
46,22.3
2007
25,000
19,960
44,960
0
2008
25,000
18,672
43,672
2009
30,000
17,227
47,227
2010
30,000
15,622
45,622
0
2011
30,000
13,987
43,987
2012
35,000
12,182
47,182
2013
35,000
10,214
45,214
0
2014
35,000
8,227
43,227
2.015
40,000
6,080
46,080
2016
40,000
3,770
43,'l70
0
2017
45,000
_ 1,305
46,305 _
$ 480,000
$ 244,415
$� 724,415
See Notes to Financial Statements
7
BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Introduction:
Tire Blair Airport Authority (Airport) complies with Generally Accepted Accounting
Principles, (GAAP). The Airport's reporting entity applies relevant Governmental
Accounting Standards Board (GASB) pronouncements.
In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement
34 "Basic Financial Statements and Management's Discussion and Analysis for the
State and Local Governments." This Statement establishes new financial reporting
requirements for state and local governments throughout the United States. When
implemented, it will require new information and restructure much of the information that
governments have presented in the past. Comparability within reports issued in all prior
years will be affected. The Airport is required to implement this standard for the fiscal
year ending September 30, 2004, The Airport has not yet determined the full impact
that adoption of GASB Statement 34 will have on the financial statements.
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, 2001.
B. Reporting Entity:
All significant activities and organizations in which the Airport exercises oversight
responsibility have been included in the Airport general purpose financial statements for
the year ended September 30, 2001. 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.
0
BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Fund Types and Account Groups:
Governmental fund types: Governmental funds use the current financial resources
i 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 riot reported in the respective governmental funds.
D. Basis of Accounting_
5.
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. Budqetary 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, 2001.
01
BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
G. Cash and Cash _Equivalents:
For the purposes of the Statement of Cash Flows the Airport considers all short -tern.
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 riot capitalized. No depreciation is provided for assets in the general fixed
asset group of accounts.
I. posits and Investments:
The statutes of the State of Nebraska require that local governmental units follow the
"prudent man" rule with deposits. The Airport requires that it have deposits one hundred
and ten percent secured by collateral valued at market or par whichever is lower less
that amount of the Federal Deposit Insurance Corporation Insurance. Deposits were in
excess of this collateral requirement by $174,717 at September 30, 2001. Total
deposits at September 30, 2001, were $274,717.
Deposits consist of savings accounts and certificates of deposit with current maturities.
Deposits in the amount of $236,000 are restricted for use in debt reduction or airport
expansion at the current location. The deposits are entirely Category 1 which means
that the investments are insured or collateralized with securities held by the entity's
agent.
J. Compensated Absences:
The Airport Authority does not accrue compensated absences because the Airport
Authority has no employees.
10
BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
2. PROPERTY TAX CALENDAR
The Airport's December 31, 2000 valuation was $306,891,630. The levy for the Airport For
the year ending September 30, 2001 was .016 per $100 of value. The total tax levy was
$49,597. 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 $24,687 of outstanding registered warrants at September 30, 2001. -The
warrants are due currently and bear an average interest rate of 4.9%. The accrued interest at
Septer-nber 30, 2001, was $104.
6. SALE OF PROPERTY -- CONTINGENCY
The Airport Authority entered into a contract to sell certain real estate on March 27, 2001.
The sale in the amount of $236,000 was contingent on the entire property remaining a golf
course. This restriction can only be lifted with approval of the City of Blair.
11
r vf.A , U. a 1l. )r' F/ `f � , l � ,G..� tr
CERTIFIED PUBLIC ACCOUNTANT
130IX zJ86 (40) 110-52,53
(402.) 426-400-0
December 20, 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 staternents of the Blair Airport Authority as of and for tine year ended
September 30, 2001, and have issued my report thereon dated December 20, 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
and material 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
T inancial 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.
12
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 dries net reduce to a relatively low level the risk that misstatements in amounts
that would be, niateriaE in relation to the general purpose financial statements being audited may
occur and not be detected within a timely pe riod by. employees in the normal course of performing
their assigned functions: My consideration of the internal cantrol over financial reporting would.not
necessarily disclose all matters in the' internal control that Pnight he reportable conditions arid,
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 repo is intended solely or the information and the use of the audit committee, management,
others Within the organization= board members, and federal awarding agencies and pass-through
entities andr is not intended to be and should not be used by anyone other than these specified .
parties.
}
Cdward W. Schroeder
Certified Public Accountant
13
Blair Airport Authority
Schedule of Findings
Year ended September 30, 2001
INSTANCES OF NON-COMPLIANCE:
No mutters were noted.
REPORTABLE CONDITIONS:
eegrggation 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 making of journal entries, investing and the preparation of reports
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.
Res, arise - 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.
14