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FY2005 Audit Report AirportBLAIR AIRPORT AUTHORITY FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2005 W �' m °v ti w � �� 0 0 N w O U ti, y o U' N M y O y O '� N rh V N O O N 41 k h ti �° o N a ti w BLAIR AIRPORT AUTHORITY TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS 3-9 STATEMENTS: Statement of Net Assets 10 Statement of Activities 11 Balance Sheet — Governmental Funds 12 Governmental Funds — Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets A 13 Statement of Revenues, Expenditures, and Changes In Fund Balance — Governmental Funds 14-15 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances,of Governmental Funds 16 NOTES TO FINANCIAL STATEMENTS 17-26 Internal Control and Compliance over Financial Reporting 27-28 Internal Control over Compliance for Major Programs 29-30 Schedule of Federal Awards 31 Schedule of Findings and Questioned Costs 32-33 Data Collection Form for Reporting on Audits of States, Local Governments, and Non -Profit Organizations 34-36 EDWARD W. SCHROEDER CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET BOX 486 BLAIR, NEBRASKA 68008 Honorable Chairman and Members of the Blair Airport Authority Board Blair, Nebraska Gentlemen: November 22, 2005 "Independent Auditor's Report" OFFICE: (402)426-4080 FAX: (402)426-9340 I have audited the accompanying financial statements of the governmental activities and each major fund, as of and for the year ended September 30, 2005, which collectively comprise the Blair Airport Authority's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Blair Airport Authority's management. My responsibility is to express opinions on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America 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 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 the 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 opinions. In my opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and each major fund of the Blair Airport Authority as of September 30, 2005, and the respective changes in financial position thereof and the respective budgetary comparisons for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, I have also issued my report dated November 22, 2005, on my consideration of the Blair Airport Authority internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of my audit. s t Chairman and Members of the Board November.22, 2005 Page 2 The management's discussion and -analysis are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. I have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, I did not audit the information and express no opinion on it. My audit was conducted for the purpose of forming opinions on.the financial statements that collectively comprise the Blair Airport Authority's, basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-1::3, Atidits of States, Local Governments and Non -Profit Organizations, and is also not a required part of the basic financial statennents of the Blair Airport Authority. The schedule of . expenditures of federal awards has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects, in relation to the basic financial statements taken as a whole. Edward W. Schroeder Certified Public Accountant BLAIR AIRPORT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2005 As management of the Blair Airport Authority, ("Airport"), we offer readers of the Airport's financial statements this narrative overview and analysis of the financial activities of the Airport for the fiscal year ended September 30, 2005. OVERVIEW OF FINANICAL STATEMENTS The discussion and analysis is intended to serve as an introduction to the Blair Airport Authority's basic financial statements. The Airport's basic financial statements include three components: 1) government -wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the Airport's finances, in a manner similar to a private -sector business. 'The Statement of Net Assets presents information on all of the Airport's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the economic position of the Airport is improving or deteriorating. The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and incurred but unpaid interest). Both of the government -wide financial statements distinguish functions of the Airport that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities are the operations of a municipal airport. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Airport like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the Airport are governmental funds. 3 BLAIR AIRPORT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2005 Overview of the Financial Statements (continued) Governmental funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The majority of the Airport's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method identified as the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted into cash. The governmental fund statements provide a detailed short-term view of the Airport's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the Airport's programs. By comparing inforrnation presentees for governmental funds with similar information presented for governmental activities in the government -wide statements, readers may better understand the long-term effect of the government's near term financing decisions. The relationships of differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is detailed in a reconciliation following the fund financial statements. The Airport adopts an annual appropriated budget for all governmental funds. A budgetary comparison statement has been provided for General Funds to demonstrate compliance with the State budget statutes. Notes to the financial statements: The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. 4 BLAIR AIRPORT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2005 Government -wide Financial Analysis: Capital assets (i.e. land, buildings, and equipment) account for 81 % of the total assets. The Airport uses these assets to provide services to its customers. Accordingly, these assets are not an available source for payment of future spending. Of the remaining assets, 16% of the governmental assets are taxes due from other governments. The following chart shows the Airport's net assets for 2005: SEE TABLE 1 Overview of the Financial Statements (continued) At the end of the current fiscal year, the Airport reported a positive balance in net assets invested in capital assets but a negative balance in unrestricted net assets. The following chart is a summary of financial information relating to the Airport's Statement of Activities: SEE TABLE 2 Governmental activities: Governmental activities increased the City's net assets by $4,580,709. Key elements of this increase are as Follows: • The increase is in part due to the Airport investing in capital assets at a rate that exceeded the depreciation on the City's assets. The cost of the equipment and other assets are depreciated over their estimated useful lives. Depreciation on the City's assets was $5,004,191 less than the City's capital outlay expenditures for the year. • The increase is also due to the receipt of capital grants used to purchase capital assets and retire debt. • Governmental principal and interest payments were financed in part by tax revenue. The Airport's charges for services include the resale of fuel and rent. The prior year comparative financial data is provided in each table to provide additional information. E TABLE 1 BLAIR AIRPORT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2005 SUMMARY OF NET ASSETS 2004 2005 ASSETS: Current and other assets $ 187,768 $ 2,196,497 Capital assets 4,378,516 9,182,707 Total assets 4,566,284 11,379,204 LIABILITIES: Other liabilities 44,651 2_,474,729 Long-term debt outstanding 562,867 365,000 Total liabilities 607,518 2,839,729 NET ASSETS: n Invested in capital assets, net of related debt 3,785,649 8,542,035 Unrestricted 173,117 (2,560) TOTAL NET ASSETS $ 3,958,766 $ 8,539,475 BLAIR AIRPORT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2005 TABLE 2 REVENUES: Program Revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Other taxes Interest and other revenue Total revenues EXPENSES: General government Interest on debt Total expenses Increase in net assets Net Assets, Beginning Net Assets, Ending CHANGES IN NET ASSETS 2004 2005 $ 67,547 $ 69,379 0 0 3,081,369 4,635,882 54,511 46,790 5,707 4,650 273 302 3,209,407 4,757,003 111,136 151,505 53,506 24,789- 164,642 176,294 3,044,765 4,580,709 914,001 3,958,766 $ 3,958,766 $ 8,539,475 7 ' BLAIR AIRPORT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2005 Financial Analysis of the Airport's Funds As mentioned earlier in this analysis, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds: The focus of the Airport's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Airport's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Airport's governmental funds reported combined unreserved deficit ending fund balances of ($2,560) a decrease of $175,677 from the prior year ending fund balances. The Airport's fund balances for the past five years are presented in a graph format and is attached separately. Budget variances in the General Fund: The Airport General Fund expenditures did not exceed budget. Significant budget variances are detailed as follow: Variance Positive Account (Negative) Reason Federal Grant Income ($1,549,624) Less grant reimbursements were received than anticipated due to the timing of expansion and grant applications. Capital Outlay $2,666,364 Project expansion expenses were not incurred as budgeted in 2005 due to the slower than expected expansion process. Bond Principal payments $6,343,767 Due to slower than expected project and expansion the permanent financing Bond Proceeds ($7,383,963) was not secured as expected in 2005. D BLAIR AIRPORT AUTHORITY MANAGEMENT'S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2005 Financial Analysis of the Airport's Funds (continued) Capital assets: The Airport's government -wide capital assets, net of accumulated depreciation, increased due to land and runway improvements being purchased. Additional information as well as a detailed classification of the City's net.capital assets can be found in the Notes to the Financial Statements. Long-term debts: The long-term debt of the Airport was increased by $247,804 to support the Airports share of capital improvements and cash flow. Next year's budget and rates The combined property tax request for the City of Blair for the fiscal year beginning October 1, 2005, was set at $.356373 per one hundred dollars of valuation for the City of Blair, Nebraska. Included within the combined levy is the property tax request for the Airport Authority for the fiscal year beginning October 1, 2005 which is set at $.012010 per one hundred dollars of valuation for debt service. Request for information This financial report is designed to provide a general overview of the Airport's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Blair Airport Authority, 218 S. 16``' Street, Blair, NE 68008. 9 BLAIR AIRPORT AUTHORITY STATEMENT OF NET ASSETS SEPTEMBER 30, 2005 Governmental ASSETS Activities Cash and Equivalents $ 141,879 Due from County Treasurer 3,793 Due from other governments 1,850,825 Capital Assets: Land 3,646,698 Buildings and runways 5,871,502 Accumulated depreciation (135,493) Total Assets 11,379,204 LIABILITIES Accounts payable 1,995,991 Accrued interest 1,316 Deposits 1,750 Bonds payable - within one year 475,672 Bonds payable - more than one year 365,000 Total liabilities 2,839,729 NET ASSETS Investment in capital assets net of related debt 8,542,035 Unrestricted (deficit) (2,560) Total Net Assets $ 8,539,475 See Notes to Financial Statements 10 m U) a) N a) Q _ c0 (DCY) to 00 ti CD CD OONOONm(Do 0) LO O 't O (fl cn Nti ti CY) ti CD CY) t` t- I` +, �� 0 00 QRZ E LO IN CO �LO00 0)L) CC W a) 'cn > a) U LON d d d 00 d' co a) O Q (D a (� Z C: c6 _0r N N N _ C O 00 00 00 %U (0 00 00 00 L6 Ld L U C (D m o co CDC:L OU N co cn > c oZS o o 0 W w c cpa '� • � w E a.) w L L) OO 0 a awO 09- U azo tiaN0L a) W N aa) co M M w v) Rf u) Q w UCD > c o J w 60, E-9 69to O f tll a) -a E N O (Q 0 cOn �� N N +� o i O N N O N N ti c�a)�' 2L a) u L U) u) CL l: rl-( X O N� oV cac� W `. `. maO�Ot'=~ ZZ a) w w z a)a) `a a) > a) �_��E a) w pE �CD , O L O O C Lo o� Q C7 N a) c E CD O FO0 O E U) C > a) C 7 q m BLAIR AIRPORT AUTHORITY i GOVERNMENTAL FUNDS BALANCE SHEET SEPTEMBER 30, 2005 General ASSETS Fund i Cash and Equivalents $ 141,879 Due from County Treasurer 3,793 Due from other governments 1,850,825 f TOTAL ASSETS $ 1,996,497 i LIABILITIES Accounts payable $ 1,995,991 Accrued interest payable 1,316 Deposits payable 1,750 TOTAL LIABILITIES $ 1,999,057 r, FUND BALANCES Fund balance - Reserved $ 0 c Fun; i balance - Unreserved (deficit) (2,560) Total Fund Balances $ TOTAL LIABILITIES AND FUND BALANCES r i $ 1,996,497 See Notes to Financial Statements I 12 BLAIR AIRPORT AUTHORITY GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS SEPTEMBER 30, 2005 Fund Balances of Governmental Funds Amounts reported for governmental activities in the Statement of Net Assets are difference because: Capital assets, net of depreciation, are not current financial resources and are not included in the governmental funds. Bonds payable are not a current financial resource. Therefore, they are not included in the governmental funds. Net Assets of Governmental Activities See Notes to Financial Statements 13 $ (2,560) 9,382,707 (840,672) $ 8,539,475 BLAIR AIRPORT AUTHORITY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2005 Travel Utilities Capital outlay Bond principal Interest expense Total expenditures - continued - 2,600 3,100 7,703,000 6,815,000 38,000 14,660,100 See Notes to Financial Statements 14 1,598 1,002 3,597 Variance 5,036,636 2,666,364 471,233 Favorable 24,789 Budget Actual (Unfavorable) REVENUES: Property taxes $ 48,500 $ 46,790 $ (1,710) Interest on taxes 0 160 160 Motor vehicle pro -rata 150 180 30 Carline tax 100 36 (64) Homestead exemption 0 2,365 2,365 Miscellaneous income 2,000 0 (2,000) In Lieu of tax 2,000 1,909 (91) Rent income 40,500 36,075 (4,425) Gas sales 28,000 333304 5,304 Interest 200 302 102 Federal grants 6,150,000 4,600,376 (1,549,624) State grants 165,000 35,506 (129,494) Total revenues 6,436,450 4,757,003 (1,679,447) EXPENDITURES: Audit fees 2,500 3,495 (995) County commission 1,000 1,001 (1) i_=quipment rental 500 0 500 Gas/Oil/Diesel 21,000 27,771 (6,771) Insurance 14,000 15,589 (1,589) Janitorial 2,500 41 2,459 Legal 30,000 4,580 25,420 Maintenance and repair 16,000 33,882 (17,882) Mowing/snow 10,000 15,220 (5,220) Office expense 300 360 (60) Grant administration 0 11,487 (11,487) Printing & publications 600 438 162 Travel Utilities Capital outlay Bond principal Interest expense Total expenditures - continued - 2,600 3,100 7,703,000 6,815,000 38,000 14,660,100 See Notes to Financial Statements 14 1,598 1,002 3,597 (497) 5,036,636 2,666,364 471,233 6,343,767 24,789 13,211 5,651,717 9,008,383 BLAIR AIRPORT AUTHORITY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2005 - continued - EXPENDITURES OTHER FINANCING SOURCES (USES): Bonding fees Bond proceeds REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES: n FUND BALANCE - September 30, 2004 FUND BALANCE - September 30, 2005 Variance Favorable Budget Actual (Unfavorable) $ (8,223,650) $ (894,714) $ 7,328,936 (20,000) 0 20,000 8,103,000 719,037 (7,383,963) (140,650) (175,677) $ (35,027) 173,117 173,117 $ 32,467 $ (2,560) See Notes to Financial Statements 15 BLAIR AIRPORT AUTHORITY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2005 Net Change in Fund Balance - Total Governmental Funds $ (175,677) Amounts reported for governmental activities in the Statement of Activities differ from the amounts reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense or are allocated to the appropriate functional expense when the cost is below the capitalization threshold. This.activity is reconciled as follows: Cost of assets capitalized 5,036,636 Depreciation expense (32,445) Bonds payable are reported as expenditures when made and as revenue when repaid in the governmental funds. However, there is no impact in the Statement of Activities when loans are made or repaid. This amount represents the change in the long-term loans. (247,805) Change in Net Assets of Governmental Activities $ 4,580,709 E r' 4 3 See Notes to Financial Statements 16 BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2005 NOTE #1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Blair Airport Authority conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles. The Airport has implemented GASB Statement No. 34 and these statements are presented according to those requirements. The following is a summary of the significant policies. A. Description of the Reporting Entice This report includes all funds of the Blair Airport Authority (the "primary government"). The Blair Airport Authority (the Airport) operates under a Board of Trustees form of government and provides airport services. B. Basis of Accounting/Measurement Focus The accounts of the Airport are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Governmental resources are allocated' to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government -Wide Financial Statements - -Thi; Airport Government -,Wide Financial Statements include a Statement of Not Assets and a Statement of Activities (including Changes in Net Assets). These statements are prepared using the standards of the Governmental Accounting Standards Board (GASB), General Accepted Accounting Principles (GAAP), as well as FASB pronouncements issued through November 30, 1989. These statements present summaries of Governmental Activities for the Airport. Fiduciary activities of the Airport are not included in these statements. These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the Airport's assets and liabilities, including capital assets and infrastructure as well as long-term debt, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. The types of transactions reported as program revenues for the Airport are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services; or privileges provided by a given function. Grant and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. 17 BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2005 - continued - All internal balances in the Statement of Net Assets have been eliminated. The Airport applies all applicable Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989 in accounting and reporting for its proprietary operations. Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in F=und Balances for all major governmental funds. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the Government -Wide Financial Statements. The Airport has presented all major funds that met the qualifications of GASB Statement No. 34. All governmental funds are accounted for on a spending or "Current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet, The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and-availabie to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 -days after year-end) are recognized when due. The primary sources susceptible to accrual are property tax, sales tax, transient occupancy tax, franchise fees, motor vehicle in lieu, highways users tax, investment incorne, and grant revenues. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund ability is incurred. An exception to this general rule is principal and interest on general long-term debt which is recognized when due. The Airport reports the following major governmental funds: The General Fund is the government's primary operating fund. It accounts for all financial resources of the Airport. M ` BLAIR AIRPORT AUTHORITY I NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2005 C. Budgetary Policy and Control • Budgetary Basis of Accounting 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 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. • Budgetary Control Each funds appropriated budget is prepared on a detailed line item basis. Revenues are budgeted by source. Expenditures are budgeted by department. Expenditures at the fund level 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 Board. No revisions to the budget were made for the year. ended September 30, 2005. D. Deposits and Investments The Airport's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. The statutes of the State of Nebraska require that local governmental units ioflow the "prudent man" rule with deposits. The Airport requires that it have deposits one hundred and five percent secured by collateral valued at market or par whichever is lower less the amount of the Federal Deposit Insurance Corporation Insurance. The carrying amount of deposits and bank balances at September 30, 2005, were $141,879 and $145,193 respectively. Deposits consist of savings accounts and certificates of deposit with current maturities. These deposits have no restrictions. The deposits are entirely insured or collateralized with securities held by the entity's agent. There is no difference between the deposits fair value and the presented amounts. Investments are shown at cost. There are no significant differences in cost and fair values at September 30, 2005. 19 BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2005 E. Capital Assets Capital assets, which include land, machinery and equipment (furniture, vehicles, computers, etc.) and infrastructure assets (street systems, storm drains, traffic signals, etc.), are reported in Governmental Activities column of the Government -Wide Financial Statements. Capital assets are defined by the Airport as assets with an initial, individual cost of more than $5,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated or annexed capital assets are recorded at estimated market value at the date of donation or annexation. The costs'of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. The Airport qualifies for the exemption under GASB 34 to not retroactively apply the capitalization requirements of general infrastructure assets. The requirements to capitalize and depreciate these assets has been applied as of October 1, 2003. Depreciation is recorded in the Government -Wide Financial Statements on a straight-line basis over the useful life of the assets as follows: Assets Years Machinery and Equipment 10 Vehicles 5 Buildings 40 Street system 40 F. Property Taxes Property tax revenue is recognized when collected by the County as the Airports agent within the current'period. There are no property taxes due which are not delinquent and all delinquent taxes are not considered collectible as of September 30, 2005. The Airport's December 31, 2004 valuation was $383,912,573. The levy for the Airport for the year ending September 30, 2005 was .013 per $100 of value. The total tax levy was $49,500. Property taxes are collected by the County and are due December 31 of each year and delinquent in halves at May 1 and September 1 of the following year. In -lieu of tax receipts are equivalent in value to payments for services provided. 20 BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEBMER 30, 2005 G. Claims and Judgments Payable The Airport records a liability for litigation, judgments, and claims when it is probable that an asset has been impaired or a liability has been incurred prior to year-end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. The liability, if any, is reported in the Government -Wide Statement of Net Assets. The portion of the liability, which will be liquidated with expendable, available financial resources, if any, is reflected as a liability of applicable governmental funds. H. Compensated Absences The Blair Airport Authority does not accrue compensated absences because the amount cannot be reasonably estimated. I. Restricted Assets Assets are reported as restricted when limitations on their use change the nature or normal understanding of the availability of the asset. Such constraints are either externally imposed by creditors, contributions, grantors, or laws of other governments, or are imposed by law through constitutional provisions or enabling legislation. The.Airport's policy is to first apply restricted resources to an expense when incurred for purposes for which both restricted and unrestricted net assets are available. 21 BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2005 NOTE 2 - CAPITAL ASSETS - GOVERNMENTAL FUNDS Capital Assets Not Depreciated Other Capital Assets: Buildings and runways Equipment Total Other Capital Assets Less Accumulated depreciation: Buildings Equipment Total Accumulated depreciation Other Capital Assets Net Governmental Activities Capital Assets, net Balance Balance Sept. 30, 2004 Additions Deletions Sept. 30, 2005 $ 3,462,986 $ 183,712 $ 0 $ 3,646,698 1,018,578 4,852,924 0 5,871,502 0 0 0 0 1,018,578 4,852,924 0 5,871,502 (103,048) (32,445) 0 (135,493) 0 0 0 0 (103,048) (32,445) 0 (135,493) 915,530 4,820,479 0 5,736,009 $ 4,378,516 $ 5,004,191 $ 0 $ 9,382,707 Depreciation expense of $32,445 was charged to General Government Expenses on the Statement of Activities. 22 BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2005 NOTE #3 — RISK MANAGEMENT The Blair Airport Authority is exposed to various risks of loss related to torts; theft, damage to and destruction of 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 past three fiscal years. NOTE #4• — NET ASSET CATEGORIES In the Government -Wide financial statements net assets are classified in the following categories: Invested in Capital Assets This category groups all capital assets, including infrastructure, into one component of net assets. Accumulated depreciation on these assets reduces this category. Restrictpd Net Assets This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Assets This category represents the net assets of the Airport that are not restricted for any project or other purpose. In the Fund financial statements, reserves and designations segregate portions of fund balance that are either not available or have been earmarked for specific purposes. The various reserves and designations are established by actions of the Airport Board and Management and can be increased, reduced, or eliminated by similar actions. 23 BLAIR AIRPORT AUTHORITY i NOTES TO FINANCIAL STATEMENTS SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT FOR THE YEAR ENDED SEPTEMBER 30, 2005 NOTE #5 - LONG TERM DEBT Dated Description _ 4/23/03 Refunding Bonds 9/30/03 BANS 11/24/04 BANS i' r Y t Total See Notes to Financial Statements 24 continued Balance Balance Interest Sept 30, Sept 30, Rate 2004 Additions Deductions 2005 1.40-4.35% 425,000 0 30,000 395,000 4.00% 167,867 0 167,867 0 4.00% 0 719,037 273,365 445,672 $ 592,867 $ 719,037 $ 471,232 $ 840,672 See Notes to Financial Statements 24 continued BLAIR AIRPORT AUTHORITY SCHEDULE OF GENERAL OBLIGATION BONDS PRINCIPAL AND INTEREST REQUIREMENTS BY YEAR OF MATURITY September 30, 2005 NOTE #5 - CONTINUED Year Ending Principal Interest September 30, Requirements Requirements Total 2006 $ 475,672 $ 16,117 $ 491,789 2007 30,000 12,583 42,583 2008 30,000 11,907 41,907 2009 30,000 11,120 41,120 2010 30,000 10,228 40,228 2011 30,000 9,231 39,231 2012 35,000 8,058 43,058 2013- 35,000 6,736 41,736 2014 35,000 5,362 40,362 2015 35,000 3,945 38,945 2016 35,000 2,484 37,484 -' 201 40,000 .870 40,870 $ 840,672 $ 98,641 $ 939,313 25 BLAIR AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2005 NOTE #6 - ALLOWANCE FOR DOUBTFUL ACCOUNTS The Airport uses the direct write-off for uncollectable accounts. There were no significant doubtful accounts at September 30, 2005. NOTE #7 - CONCENTRATION OF CREDIT RISK All of the revenue from charges for services 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 revenue. NOTE #8 - GRANTS The Blair Airport Authority has been approved for three grants through the Federal Aviation Administration for land acquisition and runway improvements in the amounts of $1,153,681, $5,422,712 and $1,468,524 as of September 30, 2005. Funds received for costs incurred through September 30, 2005 are $1,153,681, $5,422,712 and $1,112,475, respectively. NOTE #9 — COMMITMENTS The Airport is obligated under no material operating leases as of September 30, 2005. NOTE #10 —ACCOUNTS RECEIVABLE AND PAYABLE COMPONENTS Accounts receivable are due from property tax and grants and accounts payable are due to cove ractors and vei odors. 26 : EDWARD W. SCHROEDER CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET OFFICE: BOX 486 (402) 426-4080 FAX: BLAIR, NEBRASKA 68008 (402) 426-9340 REPORT ON INTERNAL CONROL OVER FINANCIAL REPORTING AND ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS November 22, 2005 To the Blair Airport Authority Board Blair, Nebraska I have audited the financial statements of the governmental activities, and each major fund of the Blair Airport Authority, as of and for the year ended September 30, 2005, which collectively comprise the Blair Airport Authority's basic financial statements and have issued my report thereon dated November 22, 2005. 1 conducted my audit in accordance with accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting F In planning and performing my audit, I considered the Blair Airport Authority, Nebraska's internal control over financial reporting in order to determine my auditing procedures for the purpose of expressing my opinions on the financial statements and not to provide an opinion 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 L 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, Nebraska's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Reportable conditions are described in the accompanying schedule of findings and questioned costs as item #1. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the 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, of the reportable conditions described above, we consider item #1 to be material weaknesses. 27 Blair Airport Authority Board Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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 grant agreements, 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 or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and the use of the management, the Airport Board, 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 W EDWARD W. SCHROEDER CERTIFIED PUBLIC ACCOUNTANT 1904 SOUTH STREET OFFICE: BOX 486 (402) 426-4080 FAX; BLAIR, NEBRASKA 68008 (402) 426-9340 x REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONROL OVER FINANCIAL COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 November 22, 2005 To the Blair Airport Authority Board Blair, NE 68008 Compliance I have audited the compliance of the Blair Airport Authority, Nebraska, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended September 30, 2005. The Blair Airport Authority's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questions costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the Blair Airport Authority's management. My responsibility is to express an opinion on the Blair Airport Authority's compliance based on my audit. I conducted my audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Blair Airport Authority's compliance with those requirements and performing such other procedures as I considered necessary in the circumstances. I believe that my audit provides a reasonable basis for my opinion. My audit does not provide a legal determination on the Blair Airport Authority's compliance with those requirements. In our opinion, Blair Airport Authority complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended September 30, 2005. r g Blair Airport Authority Board Pas;ie 2 r. Internal .Control Over Compliance The management of the Blair Airport Authority is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs.- In planning and performing my audit, I considered the Blair Airport Authority's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine my auditing procedures for the purpose of expressing my opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. I nested certain matters involving the internal control over compliance and its operation that I consider to . be reportable conditions. Reportable conditions involve matters coming to my attention relating to significant deficienciesin the design or operation of the internal control over compliance that, in my judgment, could adversely affect the Blair Airport Authority's ability to administer a major federal program in accordance with the applicable requirements of I. rws, regulations, contracts, and grants. Reportable conditions are described in the accompanying schedule of findings and questioned costs as itern #1. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with the applicable requirements of laws, regulations, contracts, and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected m within a timely period by eployees in the normal course of performing their assigned functions. My consideration of the internal control over compliance 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. Ffowever, of the reportable cor, ,ditior described above, I consrdercd-#1 to be -a mu,(:, rG4 ,.,eaa„ ,:.j,--. This report is intended solely for the information and use of the audit committee, management, Airport Board, ar)d federal awarding agencies and pass-through entities and is not intended to be and should not be ui�ed by anyone other than these specified parties. 1, - Edward W. Schroeder Certified Public Accountant E 011 I LO O O cl) MIt w U) p ( C) co M M Z~ Z D O O in Ff r co J L (V C\ O C Q w� H Ci WC) OLL W CL LL 0 m Oz _w Q w W M �A Q EL Z Ha w CO U W X w U) ►— I a) cl) MIt w N ( O M M Z~ Z D O O d~' Ff r co J L (V C\ O C d C Ci w �Z U M T- m ((o w Z O M EL Z Ha Q X w W 0 W L1 C C C O QQ CL Ur C/) O O O Z > >Q I a) cl) MIt LOLO O O W m O O O Z~ Z D O O O Ff r co T- co r co Z Q() C7 C) M d C J QW o 0 0 00 W U N N N it Z ( a) Z O C N C Ci w U U) Z O EL Z �� Q X w W 0 L1 C C C O QQ CL Ur C/) O O O Z > >Q `3 O 0 zZ w F- a. z LC Ln F- C L V) 0 J Q QO u.. E O E E aA < o Z a) J Z C o C o C:Q o U LL W A TO ca � J 0O bQ Q Q C O W-� U- < N c�6 cL6 < F Wa) O a) O La) La) !1 a) U C m ( a) C- .3 C N C O U U) U .E W 3 Q a) a) w 0 a) a) U a) C c a) > a) U C m N U) U) a) t6 cucu ,U 0.9 ui J cu a) U d. Ca C © O +_ W tna) U � vo o C/)© a W C) Q n � U O o � c W C 0) O z W 0 O Z ( Blair Airport Authority Schedule of Findings and Questioned Costs Year ended September 30, 2005 SECTION I — SUMMARY OF AUDITOR'S RESULTS FINANCIAL STATEMENTS: Type of auditor's report issued — unqualified. Internal control over financial reporting: • Material weakness(es) idenitified? X yes no • Reportable condition(s) identified that are not considered to be material weaknesses? yes none reported • Noncompliance material to financial Statements noted? yes X no FEDERAL AWARDS: Internal control over major programs: • Material weakness(es) identified? X yes no • Reportable condition(s) identified that are not considered to be material ,,veak Messes? yes none reported Type of auditor's report issued on compliance for Major programs — unqualified. Any audit findings disclosed that are required to be reported in accordance with section 510(a) of OMB Circular A-133? X yes no Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster #20.106 United States Department of Transportation Dollar threshold used to distinquish between type A and type B programs: $500,000 Auditee qualifed as low-risk auditee? yes X no Blair Airport Authority Schedule of Findings and Questioned Costs Year ended September 30, 2005 SECTION II — FINANCIAL STATEMENT FINDINGS ITEM 1 Criteria — One important aspect of internal control is the segregation of duties among employees to prevent an individual employee. from handling duties, which are incompatible. (OMB Circular A-133, Subpart C, 300 (b)) Condition — The investing, depositing and preparation of reports are done by the same person. Context — This condition was observed in the study of the internal control system. Cause and Effect —'The cause is due to the size of the entity and the effect is a weakness in internal control. 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. Officials Response — The Airport will segregate duties to the extent possible with existing personnel and utilize the council to provide additional control through review of financial transactions and reports. SECTION III — FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Summary Finding — See item #1 in Financial Statement Findings as it applies to Federal Awards from federal program #20.106. 33 a c _ OMB No. 0348-0057 FORT M eSF" 3AC U.S. DEPARTMENT OF COMMERCE — BUREAU OF THE CENSUS (8447) ACTING AS COLLECTING AGENT FOR Data Collection Porin for Repoirting on OFFICE OF MANAGEMENT AND BUDGET 'AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS Complete: this form, as required by OMB Circular A-133, °Audits • Single Audit Clearinghouse treet of States, Local Governments, and Non -Profit Organizations." Jeffersonville, onviille201 E. 10thSN 47132 GENERAL INFORMATION (To be completed by auditee, except for Item 7) 1. Fiscal year ending date for,this submission 2. Type of Circular A-133 audit MonthDay YS ear 9 , 3 0 / i [3 Single audit 2❑ Program -specific audit_ 3. Audit period covered FEDERAL 4. Date received by Federal 1 M Annual s ❑ Other- Months GOVERNMENT clearinghouse 2 0 Biennial USE ONLY 5. Employer Identification Number (EIN) ar. Audii.ee EIN IM111111 6. AUDITEE INFORMATION a. Auditee name (' Blair Airport Authority b. Are multiple EINs covered.in this report? 1 ❑ Yes 2 Pq No b. Auditee address (Number and street) 218_ S. 16th Street .city - _----- Blair State_-- ��--�-- 71P Code NE _ 68008 c. Auditee contact Name Rod_ Strum Administrator d. Auditee contact telephone _ ( 402) 426) - 4191 e. Auditee contact FAX (Optional) f. Auditee contact E-mail (Optional) g. AUDITEE CERTIFICATION STATEMENT -This is to certify that, to the best of my knowledge and belief, the auditee has; (1) Engaged an auditor to perform an audit in accordance with the provisions of OMB Circular A -11,--i?, for the period described in Part I, Items 1 and 3; (2) the auditor has completed such auditand presen �tA a signed audit report which states that tie 5W- was conducted in accordance with ne prcivi°i0 -of the Circular; and, (3) the informatiorr incluci id ir, Parts 1, 11, and IiI of this data collection form is,accurate and complete. I declare that the foregoing; is tnre.and correct.' Siclne ,F.cei ;�' g official . Date Name(i' le 4�f certifyinct official Admi.i-j i s tL ato,r 34 7. AUDITOR INFORMATION (To be completed by a. Auditor name Edward W. Schroeder, CPA b. Auditor address (Number and street) 1904 South Street, PO Box 486 City_ — Blair _ State ZIP Code NE 68008 c. Auditor contact Name Edward W. Schroeder, CPA Title President d. Auditor contact telephone (426 ) 426 -- 4080 e. Auditor contact FAX (Optional) (426) 426 -- 9340 f. Auditor contact E-mail (Optional) edschroeder@huntel.net 9- AUDITOR STATEMENT. -The data elements and information included in this form are limited to those prescribed by OMB Circular A-133. The information included in Parts 11 and III of the form, except for Part III,' Items 5 and 6, was transferred from the auditor's report(s) for the period described in Part 1, Items 1 and 3, and is not a substitute for such reports. 'The auditor has not performed any auditing procedures' since the date of the auditor's report(s). A copy of the reporting package required by OMB Circular A-133, -- which includes the complete auditor's report(s), is available in its entirety from the auditee at the address provided in Part I of this form. As required by OMB Circular A-133, the information in Parts 11 and r Ill of this form was entered in this form by the auditor based on information included in the reporting package The auditor has not performed any additional auditing procedures in connection with the comple.tlon"of this forrm,', Signature of auditor Date Month Day Year 12 / 19 / 0 5 ,, EIN: 4 7 6 0 0 6 1 0161 • r_�nr�Qne �ni�nennerinnl _ f`nn4insiasl 8. Indicate whether the auditee has either a Federal cognizant or oversight agency for audit. (Mark (X) one box) 1 ❑ Cognizant agency 2K] Oversight agency 9. Name of Federal cognizant or oversight agency for audit (Mark (X) one box) o1 ❑ African Development 83 ❑ Federal Emergency 16 ❑ Justice o8 ❑ Peace Corps Foundation Management Agency 17 ❑ Labor 59 ❑ Small Business 02 ❑ Agency for 34 ❑ Federal Mediation and as ❑ National Aeronautics. Administration International Conciliation Service and Space- 96 El Social Security Development ss El General Services Administration ' Administration to ❑ Agriculture Administration 89 ❑ National Archives and 19 ❑ State 11 ❑ Commerce 93 ❑ Health and Human Records Administraton 20.Transportation 94 ❑ Corporation for Services 05 ❑ National Endowment 21 ❑ Treasury National and 14 ❑ Housing and Urban for the Arts 82 ❑ United States Community Service Development os ❑ National Endowment Information Agency 12 ❑ Defense 03 ❑ Institute for Museum - for the Humanities 64 ❑ Veterans Affairs 84 ❑ Education Services 47 ❑ National Science ❑ Other - Specify: 81 El -Energy 04 El Inter -American Foundation ss ❑ Environmental Foundation 07 El Office of National Drug Protection Agency 15 El Interior Control Policy • FINANCIAL STATEMENTS (To be completed by auditor) I. Type of audit report (Mark (X) one box) M Unqualified opinion 2 ❑ Qualified opinion s ❑ Adverse opinion a ❑ Disclaimer of opinion 2. Is a "going concern" explanatory paragraph included in the audit report? 1 ❑ Yes 2[X No 8. Is a reportable condition disclosed? 1)9 Yes 2 ❑ No - SKIP to Item 5 4. Is any reportable condition reported as a material weakness? ifR Yes 2 ❑ No 5. Is a material noncompliance disclosed? 1 ❑ Yes 2dX No • FEDERAL PROGRAMS (To be completed by auditor) h. Type of audit report on major program compliance 1fR Unqualified opinion 2 ❑ Qualified opinion s ❑ Adverse. opinion 40 Disclaimer of opinion g. What is the dollar threshold to distinguish Type A and Type B programs §—.520(b)? $500,000 A. Did the auditee qualify as a low-risk auditee (§_ .530)? i ❑. Yes 291 No 4. Are there any audit findings required to be reported under "§113 Yes 2 ❑ No a. Which Federal Agencies are required to receive the reporting package? (Mark (X) all that apply) of ❑ African. Development 83 ❑ Federal Emergency , , 15 ❑ Justice os ❑ Peace Corps Foundation Management Agency 17 ❑ "Gabor° 59 ❑ Small Business 02 ❑ Agency for 34 El, Fddera ( Mediation. and 43 ❑ National Aeronautics Administration International, Conciliation Service and Space 96 ❑ Social Security Development 39 ❑ General Services ; Administration ':. . " Administration. io ❑ Agriculture Administration 89 ❑ National Archives and 19 ❑ State 11 ❑ Commerce 93 ❑ Health and Human Records Administraton 20 ❑ Transportation 94 ❑ Corporation for Services o5 ❑ National Endowment 21 ❑ Treasury National and is ❑ . Housing and Urban for the Arts 82 ❑ United States Community Service Development oe ❑ National Endowment Information Agency 12 ❑ Defense os ❑ Institute for.Museum for the Humanities 64 ❑ Veterans Affairs 84 ❑ Education Services 47 ❑ National Science oo g None 81 ❑ Energy 04 ❑ Inter -American Foundation o7 ❑ Office ofAational Drug ❑. 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