FY2016 Audit Report City
City of Blair, Nebraska
FINANCIAL STATEMENTS
INDEPENDENT ACCOUNTANT’S REPORT
For the year ended September 30, 2016
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TABLE OF CONTENTS
Page
INDEPENDENT ACCOUNTANT’S REPORT 3 - 5
MANAGEMENT’S DISCUSSION AND ANALYSIS 6 - 17
BASIC FINANCIAL STATEMENTS
Statement of financial position - Government-wide 18 – 19
Statement of activities - Government-wide 20
Balance sheet - Governmental funds 21
Reconciliation of the balance sheet of governmental funds
to the statement of net position 22
Statement of revenues, expenditures, and changes in
fund balances - Governmental funds 23
Reconciliation of the statement of revenues, expenditures
and changes in fund balances of governmental funds
to the statement of activities 24
Statement of net position - Proprietary funds 25
Statement of revenues, expenses, and changes in
net position - Proprietary funds 26
Statement of cash flows - Proprietary funds 27 - 28
Statement of net position - Fiduciary funds 29
Statement of changes in fiduciary net position – Fiduciary funds 30
NOTES TO FINANCIAL STATEMENTS 31 - 55
REQUIRED SUPPLEMENTAL INFORMATION
Budgetary comparison schedule - General fund 57 - 58
Budgetary comparison schedule - General fund revenues 59
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TABLE OF CONTENTS – CONTINUED
Page
REQUIRED SUPPLEMENTAL INFORMATION - CONTINUED
Budgetary comparison schedule - Street fund 60 - 61
Budgetary comparison schedule - Keno fund 62
SUPPLEMENTAL INFORMATION
Individual fund balance sheet – Economic development fund, a fund
Within the General fund 64
Individual fund statement of revenues, expenditures, and changes in
Fund balance – Economic development fund, a fund Within the General fund 65
Combining balance sheet – General fund 66
Combining statement of revenues, expenditures, and changes in 67
Fund balance – general fund
Schedule of Expenditures of Federal Awards 68
Notes to Schedule of Expenditures of Federal Awards 69
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS 70 - 71
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY OMB THE UNIFORM GUIDANCE 72 - 74
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 75 - 76
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 77
INDEPENDENT AUDITOR’S REPORT
To the City Council
City of Blair, Nebraska
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, and each major fund of the City of Blair, Nebraska, as of and for the
year ended September 30, 2016, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our 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 we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
Accordingly, we express no such opinion.
www.hayes-cpa.comWestroads Pointe | 1015 N. 98th St., Suite 200 | Omaha, NE 68114 | T 402-390-2480
Omni Center | 300 West Broadway, Suite 224 | Council Bluffs, IA 51503 | T 712-322-5503
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An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, and
each major fund of the City of Blair, Nebraska, as of September 30, 2016, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information on pages 6 - 17
and 57 - 62 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Blair, Nebraska’s basic financial statements. The schedule of
expenditures of federal awards is presented for purposes of additional analysis as required by
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards, and is also not a required part of the
basic financial statements.
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The combining and individual non-major fund financial statements and the schedule of
expenditures of federal awards are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated
in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 3, 2017, on our consideration of the City of Blair, Nebraska’s internal control over
financial reporting and on our 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 our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City of Blair, Nebraska’s internal control over financial
reporting and compliance.
Hayes & Associates, L.L.C.
Omaha, Nebraska
February 3, 2017
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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The discussion and analysis of the City of Blair’s financial performance provides an overview
and analysis of the City’s financial activities for the fiscal year ended September 30, 2016. It
should be read in conjunction with the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
The assets of the City of Blair exceeded its liabilities at the close of the fiscal year
ending September 30, 2016, by $48.4 million (net position). Of this amount, $11.8
million (unrestricted net position) may be used to meet the government’s ongoing
obligations to citizens and creditors.
The City of Blair’s total net position increased by $4.1 million for the year ended
September 30, 2016. This was the result of several projects being completed with
grants, sales tax revenue, and/or short term warrant funding.
As of September 30, 2016, the City of Blair’s governmental funds reported combined
ending fund balances of $3.9 million, a decrease of $1.95 million in comparison with
the prior fiscal year.
The fund balances for the General Fund increased $510,404 for the fiscal year ended
September 30, 2016. The Debt Service Fund increased $133,841 primarily due to
collection of delinquent assessments, and transfer of sales tax. The Street Fund
decreased $2.62 million during the same period primarily due to new projects funded
by Sales tax and grants and a $3.5 million prior period adjustment. See Note M.
The City’s total debt decreased by $1.1 million during the current fiscal year. The City
issued new debt of $5.7 million during the current year and continued to make debt
payments this year totaling $6.8 million. The decrease was primarily due to the normal
payment of scheduled bond payments.
OVERVIEW OF FINANCIAL STATEMENTS
The discussion and analysis serves as an introduction to the City of Blair’s basic financial
statements. The City of Blair’s basic financial statements are comprised of three components,
government-wide financial statements, fund financial statements, and notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Blair’s finances in a manner
similar to a private-sector business. The statement of financial position presents information on
all of the City of Blair’s assets, deferred outflows, liabilities, and deferred inflows with the
difference between them reported as net position. Over time, increases or decrease in net
position may serve as a useful indicator of whether the financial position of the City of Blair is
improving or deteriorating. The statement of financial position combines and consolidates
governmental funds’ current financial resources (short-term spendable resources) with capital
assets and long-term obligations. Other nonfinancial factors should also be taken into
consideration, such as changes in the City’s property tax base and the condition of the City’s
infrastructure (i.e. roads, drainage improvements, storm and sewer lines, etc.), to assess the
overall health or financial condition of the City. The statement of activities presents information
showing how expenses are taken into account regardless of when cash is received or paid. 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). Both the statement of financial position
and the statement of activities are prepared utilizing the accrual basis of accounting as opposed
to the modified accrual basis.
In the statement of financial position and the statement of activities, the City is divided into two
kinds of activities, with the third activity (fiduciary) not included in the government-wide totals:
Governmental Activities - Most of the City’s basic services are reported here, including
the police, streets, fire, library, planning and development, parks and recreation, and
general administration. Property taxes, sales taxes, and state allocations finance most of
these activities.
Business type Activities - The City charges a fee to customers to help it cover all or
most of the cost of certain services it provides. The City’s water and sewer system are
reported here.
Fiduciary Activities - The City accounts for Agency Funds for TIF District #1 Project
which are held in restriction to pay the costs of the District. TIF District #1 bonds are
held by the developer and do not carry the full faith and credit of the City.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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Reporting the City’s Most Significant Funds
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. Some funds are required to be established
by state laws and by bond covenants. However, the City also establishes many other funds to
help it control and manage money for particular purposes or to show that it is meeting legal
responsibilities for using certain taxes, grant and other money. The City’s three kinds of fund
financial statements – governmental, proprietary and fiduciary - utilize different accounting
approaches.
Governmental funds - The majority of the City’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 City’s
general governmental operations and the basic services it provides. Governmental fund
information helps determine whether there are more or less financial resources that can
be spent in the near future to finance the City’s programs. By comparing information
presented 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 financial
position and the statement of activities) and governmental funds are detailed in a
reconciliation following the fund financial statements.
The City of Blair maintains five individual governmental funds. Information is presented
separately in the governmental funds balance sheet and in the governmental funds
statement of revenues, expenditures, and changes in fund balances for the general fund,
debt service fund, street fund, keno fund and capital projects fund, all of which are
reported as major funds.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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Fund Financial Statements - Continued
Proprietary funds - The City charges customers for the services it provides, whether to
outside customers or to other units within the City. These services are generally reported
in proprietary funds. Proprietary funds are reported in the same way that all activities are
reported in the statement of net position and the statement of activities. In fact, the City’s
enterprise funds (a component of proprietary funds) are identical to the business-type
activities that are reported in the government-wide statements but provide more detail
and additional information, such as cash flows, for proprietary funds.
The City of Blair maintains two individual enterprise funds. The City uses enterprise
funds to account for its water and sewer. The funds provide the same type of information
as the government-wide financial statements, only in more detail and include some of
the internal service fund type activity. The proprietary fund financial statements provide
separate information for the water and sewer funds, both of which are considered to be
major funds in the City.
Fiduciary fund - The City accounts for Agency Funds for TIF District #1 Project which
are restricted to pay the costs of the District. TIF District #1 bonds are held by the
developer and do not carry the full faith and credit of the City.
Notes to 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. The notes to the financial
statements can be found immediately following the basic financial statements.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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THE CITY AS A WHOLE - Government-Wide Financial Analysis
The City’s combined net position was $48.4 million as of September 30, 2016. Analyzing the
net position and net expenses of governmental and business-type activities separately, the
governmental activities net position was $23.0 million and the business type activities net
position were $25.4 million. This analysis focuses on the net position (table 1) and changes in
general revenues (table 2) and significant expenses of the City’s governmental and business-
type activities. The comparative government-wide results are provided in the tables for
additional analysis.
By far the largest portion of the City’s net position (76%) reflects its restricted and capital assets
(e.g., donations, community betterment, debt service, rescue squad, and economic
development).
TABLE 1 (amounts are expressed in thousands)
2016 2015 2016 2015 2016 2015
ASSETS
Current and other assets 9,111$ 10,806$ 8,144$ 6,033$ 17,255$ 16,839$
Capital assets 22,304 27,263 48,260 42,435 70,564 69,698
Total assets 31,415 38,069 56,404 48,468 87,819 86,537
LIABILITIES
Long-term debt 7,545 7,995 28,565 29,586 36,110 37,581
Other liabilities 866 2,549 2,420 2,119 3,286 4,668
Total liabilities 8,411 10,544 30,985 31,705 39,396 42,249
DEFERRED INFLOWS 46 46 - - 46 46
NET POSITION
Net investment in
capital assets 14,759 19,268 18,124 11,655 32,883 30,923
Restricted 1,547 1,188 2,176 1,738 3,723 2,926
Unrestricted (deficit) 6,652 7,023 5,119 3,370 11,771 10,393
Total net position 22,958$ 27,479$ 25,419$ 16,763$ 48,377$ 44,242$
Governmental Activities Business-type Activities Total Primary Government
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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Governmental activities: Governmental activities increased the City’s net position by $1.8
million before transfers.
Key elements of this increase are as follows:
The revenue in governmental funding activities decreased while expenses increased, but
General fund activities still generated a positive gain before transfers. The General Fund
was the most effective at covering its costs due to sales tax, fees charged, operating
grants, capital grants, and contributions, which was generally a positive increase. The
governmental funds had an operating surplus, before considering the transfers to the
Governmental activities.
The comparative financial analysis is provided for additional information. The City’s
governmental revenues decreased when compared to the prior year by 0.31% or $4.2
million. The primary reason for this decrease was the reduction of grants and
contributions from prior year. The assessed value of the property of the City increased
by $14.02 million or 2.9% as compared to the prior year while the City property tax rate
of $0.357902 per $100 assessment remained unchanged.
Business-type Activities
Revenues of the City’s business-type activities were $9.6 million for the fiscal year ending
September 30, 2016. Expenses for the City’s business-type activities were $7.4 million for the
year, resulting in a net position increase of $2.2 million before transfers. The net increase was
the result of primarily increased water revenue from the Cargill take or pay contract and
recovered insurance payments from the hail storm of 2014.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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2016 2015 2016 2015 2016 2015
REVENUES
Program revenues
Charges for services 610$ 815$ 8,678$ 8,534$ 9,288$ 9,349$
Operating grants and
contributions 52 267 10 - 62 267
Capital grants and
contributions 1,974 4,571 - - 1,974 4,571
General revenues
Taxes 5,720 5,793 - - 5,720 5,793
Intergovernmental - - - - - -
Interest income 8 7 12 10 20 17
Special assessment 99 354 - - - 354
Gains 647 1,328 906 641 - 1,969
Other 244 421 33 33 277 454
Total revenues 9,354 13,556 9,639 9,218 18,993 22,774
EXPENSES
Administration 946 735 - - 946 735
Police 1,842 1,903 - - 1,842 1,903
Fire 228 257 - - 228 257
Parks 618 606 - - 618 606
Library 782 393 - - 782 393
Swimming pool 67 77 - - 67 77
Zoning 290 303 - - 290 303
Animal control 124 86 - - 124 86
Donated fund 31 28 - - 31 28
Mitigation 10 19 - - 10 19
Streets 2,183 1,941 - - 2,183 1,941
Keno 24 26 - - 24 26
Community betterment 14 3 - - 14 3
Rescue squad 160 146 - - 160 146
Bond issuance costs 2 50 - - 2 50
Interest expense 155 168 - - 155 168
Water - - 6,124 5,766 6,124 5,766
Sewer - - 1,256 1,112 1,256 1,112
Total expenses 7,476 6,741 7,380 6,878 14,856 13,619 CHANGE IN NET POSITION
BEFORE TRANSFERS 1,878 6,815 2,259 2,340 4,137 9,155
TRANSFERS (6,398) 438 6,398 (438) - - CHANGE IN NET POSITION (4,520) 7,253 8,657 1,902 4,137 9,155 NET POSITION, BEGINNING 27,478 20,225 16,764 14,862 44,242 35,087
NET POSITION, END OF YEAR 22,958$ 27,478$ 25,421$ 16,764$ 48,379$ 44,242$
Governmental Activities Business-type Activities Total Primary Government
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of the fiscal year 2016, the City had $107.3 million invested in a broad range of
capital assets, including police and fire equipment, buildings, park facilities, and water and
sewer plants. (See Table 3) This amount represents a net increase (including increases and
decreases) of $3.5 million or 3.4% over the prior fiscal year. Beginning October 1, 2003, the
City began capitalizing general infrastructure assets and depreciating them over their useful
lives as required by GASB 34. The general infrastructure assets capitalized in 2016 was $1.9
million.
TABLE 3 (amounts are expressed in thousands)
Beginning Decreases / Ending
Balance Increases Recharacterization Balance
GOVERNMENTAL ACTIVITIES
Land 1,497$ 160$ (373)$ 1,284$
Construction in progress 9,163 3,228 (12,166) 225
Infrastructure 15,423 1,868 - 17,291
Buildings 6,596 2,297 - 8,893
Equipment 4,959 1,083 (144) 5,898
Total governmental 37,638 8,636 (12,683) 33,591
BUSINESS-TYPE ACTIVITIES
Water assets 56,006 9,290 (2,323) 62,973
Sewer assets 10,139 942 (305) 10,776
Total business-type 66,145 10,232 (2,628) 73,749
Totals 103,783$ 18,868$ (15,311)$ 107,340$
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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Debt
At year-end, the City had $3.9 million in General Obligation Bonds outstanding as compared to
$4.5 million at the end of the prior fiscal year, resulting in a decrease of $570 thousand shown in
Table 4. The Water Revenue Bonds outstanding has a net decrease of $644 thousand. The City
has a 25 year take or pay contract with Cargill to secure all debt incurred for expanding the
City’s water system for the ability to meet Cargill’s water needs. The expanded plant has a
capacity of 20 MGD, with 15.5 MGD being committed to Cargill under the amended 25 year
take or pay contract.
TABLE 4 (amounts are expressed in thousands)
Balance Balance
September 30, September 30,
2015 Additions Reductions 2016
General Obligation Bonds 4,495$ -$ (570)$ 3,925$
Revenue anticipation notes 3,500 120 - 3,620
Water Revenue Bonds 28,034 5,550 (6,081) 27,503
Sewer Revenue Bonds 2,746 - (113) 2,633
Totals 38,775$ 5,670$ (6,764)$ 37,681$
Description
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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THE CITY’S FUND
At the close of the City’s fiscal year on September 30, 2016, the governmental funds of the City
reported a combined fund balance of $3.86 million.
General Fund Budgetary Highlights
General Fund had revenues over expenditures of $687,768 with a net of $510,404, after
transfers in and out, sales of assets, and insurance proceeds. This was primarily accomplished
from the fact expenses were slightly below budgeted projections and intergovernmental
revenues were up.
Debt Service had expenditures of $248,464 more than revenues. When combined with sale of
assets from previously foreclosed properties, and transfers in and out, Debt service increased
ending balance by $133,841. This was the result of getting the lots in Deerfield sold and
transfers in from sales tax to help pay the City’s cost of general obligation bonds for paving and
storm sewers in new subdivisions.
Street Fund had an operating loss of $560,712. This was offset with the transfer in of
$1,316,214 from sales tax for capital projects, insurance proceeds, and sale of assets which
resulted in a net increase of $879,547, prior to the $3.5 million prior period adjustment.
Keno and Capital Projects Fund had no major deviations in revenues or expenditures.
Water had an increase in water revenues from the increase in the take or pay contract with
Cargill with the issuance of debt to take out the short term Bond anticipation notes that had been
issued for the 2012/2013 plant expansion. The City issued $5.5 million in 20 year bonds to pay
off part of the $8.2 million in bond anticipation notes that had been issued for the 2012/2013
plant expansion. It is anticipated the remaining $3.2 million in bond anticipation notes will be
called in February of 2017. Sewer Funds had no major deviation of revenues or expenditures.
Water and Sewer both finished the year with a ratio of operating income before depreciation,
divided by Debt Service greater than 1.25 as required by the covenants in the authorizing
Ordinances.
All other funds operated without any significant changes to the funds and the City has
completed all storm related repairs from the flood of 2011 and hail storm of 2014. The FEMA
flood mitigation project has been closed out the City anticipates calling $3.1 million of the $3.5
million Flood Control bonds issued for that project in February and the remaining $0.4 million
in May or June of 2017.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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With the completion of the FEMA mitigation the City will be able to continue near normal
operations at the water and wastewater plants in the event of a future flooding event similar to
the flood of 2011. In addition the mitigation project allowed for the installation of generators
capable of operating the plants in any emergency, without an electrical feed from OPPD.
The City has fully migrated from partial self-insured, health coverage for employees to a
traditional market rate insurance program through Blue Cross and Blue Shield, with rates
remaining fairly stable.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Current economic conditions point toward a slight slowing of the economy due to the recent
down turn in the agricultural industry from high costs and low commodity prices. Despite the
down turn in the regional agricultural economy we anticipate continued growth in the Blair
community that will allow for a stable budget environment. The property tax levy for fiscal year
2017 remained stable with a slight increase at 35.8163 cents per hundred of actual valuation
compared to the Fiscal 2016 levy of 35.7902. The 2016 valuation for the City was
$522,612,640 which was an increase of $21,206,270 or 4.2%.
The City is again seeing a steady development of commercial and residential properties. With
the Dana College property back on the market for development, due the pull out of Midland
University from expanding to the Blair Campus, the City Staff and local economic development
corporation, Gateway Development Corporation, are active in pursing potential developers for
the property.
The City is also working with a couple developers on the possibility of creating new housing
lots. The cost of new development lots is one of the primary obstacles facing the City of Blair in
the development of new housing.
The October closing and decommissioning of the OPPD Nuclear Plant located south of the Blair
approximately two miles is anticipated to have some future impact on the Blair economic
conditions, although the City is confident that with the decommissioning, which will extend
over fifteen to twenty five year period, the City will be able to absorb the loss of jobs at the
plant through expansion of current businesses/industries and new companies looking to locate in
Blair area.
Local tax receipts appear to be stable with sales taxes receipts continuing to meet or exceed
budgeted projections.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2016
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The water and wastewater funds continue to be stable. The Papio NRD will be adding the
Lakeland water company up to the NRD’s water system sometime in January which will add
another 300 connections to the system. They are also looking at adding part of Fort Calhoun’s
water used to the NRD’s rural system that is supplied by Blair.
The one issue facing the City’s water system is the renewal of the City’s NPDES permit. The
permit for discharging back to the Missouri River is under review by the Nebraska Department
of Environmental Quality (DEQ) and current drafts would call for reduction of spent lime being
discharged back to the river. This could potentially require installation of some type of treatment
process that preliminary estimates call for spending of ten to fifteen million in capital cost and
three hundred thousand to four hundred thousand annually. This potential unfunded mandate
would require a significant rate increase. The City is continuing to work with DEQ to determine
potential alternatives and requirements.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and
creditors with a general overview of the City’s finances and to show the City’s accountability
for the money it receives. If you have questions about this report or need additional financial
information, contact the City of Blair, 218 S. 16th Street, Blair, NE 68008.
Governmental Business-type
Activities Activities Total
ASSETS
Current Assets
Cash and cash equivalents 5,740,700$ 4,495,105$ 10,235,805$
Accounts receivable 6,181 1,460,778 1,466,959
Intergovernmental receivable 67,500 - 67,500
Sales tax receivable 395,411 - 395,411
Property tax receivable 118,857 - 118,857
Prepaid expense 18,560 12,322 30,882
Special assessments receivable 802,731 - 802,731
Total Current Assets 7,149,940 5,968,205 13,118,145
Noncurrent Assets
Notes receivable 50,000 - 50,000
Restricted cash and cash equivalents 1,911,429 2,175,693 4,087,122
Capital assets
Non-depreciable
Land 1,284,451 423,783 1,708,234
Construction in progress 225,529 73,433 298,962
Depreciable
Infrastructure 17,290,590 24,740,078 42,030,668
Buildings 8,893,406 45,607,937 54,501,343
Equipment 5,898,522 2,903,756 8,802,278
Accumulated depreciation (11,288,375) (25,489,418) (36,777,793)
Net Capital Assets 22,304,123 48,259,569 70,563,692
Total Noncurrent Assets 24,265,552 50,435,262 74,700,814
Total Assets 31,415,492$ 56,403,467$ 87,818,959$
LIABILITIES
Current Liabilities
Accounts payable 180,061$ 391,557$ 571,618$
Accrued expenses 260,748 171,930 432,678
Accrued interest 29,132 283,997 313,129
Deposits payable 67,800 1,700 69,500
Registered warants 328,280 - 328,280
Bonds payable - due within one year 430,000 1,570,651 2,000,651
Total Current Liabilities 1,296,021 2,419,835 3,715,856
Noncurrent Liabilities
Bonds payable - due in more than one year 7,115,000 28,564,973 35,679,973
Total Noncurrent Liabilities 7,115,000 28,564,973 35,679,973
Total Liabilities 8,411,021 30,984,808 39,395,829
City of Blair, Nebraska
STATEMENT OF FINANCIAL POSITION
September 30, 2016
GOVERNMENT - WIDE
See accompanying notes and independent auditor's report
- 18 -
Governmental Business-type
Activities Activities Total
DEFERRED INFLOWS
Nonrefundable deposits 46,000$ -$46,000$
NET POSITION
Net investment in capital assets 14,759,123 18,123,945 32,883,068
Restricted:
Debt service 687,496 2,175,693 2,863,189
Donated projects 52,988 - 52,988
Economic development 381,069 - 381,069
Rescue squad 237,667 - 237,667
Reuse funds 6 - 6
Community betterment 187,805 - 187,805
Unrestricted 6,652,317 5,119,021 11,771,338
Total net position 22,958,471 25,418,659 48,377,130
Total liabilities, deferred inflows, and net position 31,415,492$ 56,403,467$ 87,818,959$
- 19 -
See accompanying notes and independent auditor's report
City of Blair, Nebraska
STATEMENT OF FINANCIAL POSITION
GOVERNMENT - WIDE
September 30, 2016
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22
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b
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r
3
0
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2
0
1
6
Pr
o
g
r
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e
v
e
n
u
e
s
GO
V
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N
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W
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p
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Str
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t
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Fu
n
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Fu
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Fu
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d
Total
AS
S
E
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S
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s
h
a
n
d
c
a
s
h
e
q
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s
2,5
5
7
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5
6
3
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$
3,1
7
1
,
9
1
7
$
-
$
11
,
2
2
0
$
5,740,700
$
Re
c
e
i
v
a
b
l
e
s
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
-
-
67
,
5
0
0
-
-
67,500
Sa
l
e
s
t
a
x
39
5
,
4
1
1
-
-
-
-
395,411
Sp
e
c
i
a
l
a
s
s
e
s
s
m
e
n
t
s
37
7
80
2
,
3
5
4
-
-
-
802,731
Ot
h
e
r
2,6
3
0
-
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3,5
5
1
-
6,181
Pr
o
p
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r
t
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t
a
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e
s
r
e
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e
i
v
a
b
l
e
10
0
,
1
6
5
2,8
2
9
15
,
8
6
3
-
-
118,857
Re
s
t
r
i
c
t
e
d
c
a
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
Ca
s
h
79
6
,
7
5
9
80
5
,
4
1
6
-
18
4
,
2
5
4
-
1,786,429
Ce
r
t
i
f
i
c
a
t
e
s
o
f
d
e
p
o
s
i
t
12
5
,
0
0
0
-
-
-
-
125,000
To
t
a
l
a
s
s
e
t
s
3,9
7
7
,
9
0
5
$
1,6
1
0
,
5
9
9
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3,2
5
5
,
2
8
0
$
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7
,
8
0
5
$
11
,
2
2
0
$
9,042,809
$
LI
A
B
I
L
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T
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S
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c
o
u
n
t
s
p
a
y
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b
l
e
10
4
,
6
4
2
$
-
$
75
,
4
1
9
$
-
$
-
$
180,061
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Ac
c
r
u
e
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e
x
p
e
n
s
e
s
37
,
2
5
1
-
9,0
7
9
-
-
46,330
Ba
n
k
o
v
e
r
d
r
a
f
t
-
-
-
-
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-
De
p
o
s
i
t
s
p
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y
a
b
l
e
67
,
8
0
0
-
-
-
-
67,800
Re
v
e
n
u
e
a
n
t
i
c
i
p
a
t
i
o
n
n
o
t
e
-
12
0
,
0
0
0
3,5
0
0
,
0
0
0
-
-
3,620,000
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g
i
s
t
e
r
e
d
w
a
r
r
a
n
t
s
-
-
32
8
,
2
8
0
-
-
328,280
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
20
9
,
6
9
3
12
0
,
0
0
0
3,9
1
2
,
7
7
8
-
-
4,242,471
DE
F
E
R
R
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D
I
N
F
L
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In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
-
-
67
,
5
0
0
-
-
67,500
Sp
e
c
i
a
l
a
s
s
e
s
s
m
e
n
t
s
37
7
80
1
,
3
7
5
-
-
-
801,752
Pr
o
p
e
r
t
y
t
a
x
e
s
60
,
9
3
5
1,7
2
8
9,8
1
2
-
-
72,475
To
t
a
l
d
e
f
e
r
r
e
d
i
n
f
l
o
w
s
o
f
r
e
s
o
u
r
c
e
s
61
,
3
1
2
80
3
,
1
0
3
77
,
3
1
2
-
-
941,727
FU
N
D
B
A
L
A
N
C
E
S
Re
s
t
r
i
c
t
e
d
De
b
t
s
e
r
v
i
c
e
-
68
7
,
4
9
6
-
-
-
687,496
Do
n
a
t
e
d
f
u
n
d
s
52
,
9
8
8
-
-
-
-
52,988
Ec
o
n
o
m
i
c
d
e
v
e
l
o
p
m
e
n
t
38
1
,
0
6
9
-
-
-
-
381,069
Re
s
c
u
e
s
q
u
a
d
23
7
,
6
6
7
-
-
-
-
237,667
Re
u
s
e
f
u
n
d
s
6
-
-
-
-
6
Co
m
m
u
n
i
t
y
b
e
t
t
e
r
m
e
n
t
-
-
-
18
7
,
8
0
5
-
187,805
Co
m
m
i
t
t
e
d
Ca
p it
a
l
p ro
j ec
t
s
-
-
-
-
-
-
As
s
i
g
n
e
d
En
c
u
m
b
r
a
n
c
e
s
10
4
,
6
1
3
-
-
-
-
104,613
Un
a
s
s
i
g
n
e
d
2,9
3
0
,
5
5
7
-
(7
3
4
,
8
1
0
)
-
11
,
2
2
0
2,206,967
To
t
a
l
f
u
n
d
b
a
l
a
n
c
e
s
3,7
0
6
,
9
0
0
68
7
,
4
9
6
(7
3
4
,
8
1
0
)
18
7
,
8
0
5
11
,
2
2
0
3,858,611
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
,
d
e
f
e
r
r
e
d
i
n
f
l
o
w
s
a
n
d
f
u
n
d
b
a
l
a
n
c
e
s
3,9
7
7
,
9
0
5
$
1,6
1
0
,
5
9
9
$
3,2
5
5
,
2
8
0
$
18
7
,
8
0
5
$
11
,
2
2
0
$
9,042,809
$
- 2
1
-
Ci
t
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
GO
V
E
R
N
M
E
N
T
A
L
F
U
N
D
S
BA
L
A
N
C
E
S
H
E
E
T
Se
p
t
e
m
b
e
r
3
0
,
2
0
1
6
Se
e
a
c
c
o
m
p
a
n
y
i
n
g
n
o
t
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s
a
n
d
i
n
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e
p
e
n
d
e
n
t
a
u
d
i
t
o
r
'
s
r
e
p
o
r
t
Fund balances of governmental funds 3,858,611$
Amounts reported for governmental activities in the statement of
net position are different because
Long-term receivables are not current financial resources and
therefore is not reported in the funds. 50,000
Prepaid expenses are not a current financial resource. Therefore,
they are not included in the governmental funds. 18,560
Capital assets, net of depreciation, are not current financial
resources and are not included in the governmental funds. 22,304,123
Accrued compensated absences are not due and payable in the
current period and therefore are not reported in the funds. (214,418)
Accrued interest does not require current financial resources and
therefore is not reported in the funds. (29,132)
Nonrefundable prepaid deposits are reported as current resources in the
government funds, but are deferred invlows on the government-wide statements. (46,000)
Bonds payable are not a current financial resource. Therefore,
they are not included in the governmental funds. (3,925,000)
Taxes and special assessments receivable that are not available to pay for current period
expenditures are recorded as deferred inflows in the governmental funds. 941,727
Net position of governmental activities 22,958,471$
See accompanying notes and independent auditor's report
- 22 -
City of Blair, Nebraska
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
September 30, 2016
TO THE STATEMENT OF NET POSITION
Ca
p
i
t
a
l
Ge
n
e
r
a
l
D
e
b
t
S
e
r
v
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St
r
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n
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Pr
o
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t
s
Fu
n
d
Fu
n
d
Fu
n
d
Fu
n
d
Fu
n
d
Total
RE
V
E
N
U
E
S
Ta
x
e
s
4 ,46
7
,21
7
$
49
,43
1
$
1 ,13
2
,42
1
$
-
$
10
0
,556
$
5 ,749 ,625 $
Ke
n
o
p ro
c
e
e
d
s
-
-
-
10
9
,11
5
-109 ,115
Ch
a
r
g es
f
o
r
s
e
r
v
i
c
e
s
1 ,44
6
,09
5
-
-
-
-1 ,446 ,095
S p ec
i
a
l
a
s
s
e
s
s
m
e
n
t
-
12
6
,24
6
-
-
-126 ,246
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i
a
l
a
s
s
e
s
s
m
e
n
t
i
n
t
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e
s
t
-
98
,91
2
-
-
-98 ,912
In
t
e
r
e
s
t
i
n
c
o
m
e
7 ,14
6
78
0
17
0
58
-8 ,154
In
t
e
r
g ov
e
r
n
m
e
n
t
a
l
50
8
,98
6
-
2 ,33
0
,59
2
-
-2 ,839 ,578
Ot
h
e
r
r
e
v
e
n
u
e
s
12
9
,74
9
52
,00
0
52
5
,99
6
-
-707 ,745
To
t
a
l
r
e
v
e
n
u
e
s
6
,55
9
,19
3
32
7
,36
9
3 ,98
9
,17
9
10
9
,17
3
10
0
,556 11 ,085 ,470
EX
P
E
N
D
I
T
U
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E
S
Ad
m
i
n
i
s
t
r
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t
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o
n
1 ,66
1
,58
6
10
,76
7
-
-
3 ,798 1 ,676 ,151
Po
l
i
c
e
D
e
p ar
t
m
e
n
t
1 ,77
2
,15
5
-
-
-
-1 ,772 ,155
Fi
r
e
D
e
p ar
t
m
e
n
t
24
4
,30
0
-
-
-
-244 ,300
Pa
r
k
s
D
e
p ar
t
m
e
n
t
54
4
,06
4
-
-
-
-544 ,064
Li
b
r
a
r
y
46
6
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0
-
-
-
-466 ,990
Sw
i
m
m
i
n
g p oo
l
41
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5
-
-
-
-41 ,185
Zo
n
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g
28
7
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3
-
-
-
-287 ,263
An
i
m
a
l
c
o
n
t
r
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l
10
6
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9
-
-
-
-106 ,339
Ca
p it
a
l
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u
t
l
a
y
70
6
,87
3
-
2 ,98
0
,90
9
-
-3 ,687 ,782
Do
n
a
t
e
d
f
u
n
d
s
30
,56
6
-
-
-
-30 ,566
Mi
t
i
g at
i
o
n
10
,10
4
-
-
-
-10 ,104
Ke
n
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e
x
p en
s
e
-
-
-
24
,48
8
-24 ,488
Co
m
m
u
n
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y b
e
t
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n
t
-
-
-
13
,75
0
-13 ,750
St
r
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e
t
-
-
1 ,53
3
,98
2
-
-1 ,533 ,982
De
b
t
s
e
r
v
i
c
e
Pr
i
n
c
i
p le
-
47
5
,00
0
-
-
95
,000 570 ,000
In
t
e
r
e
s
t
-
88
,06
6
35
,00
0
-
30
,870 153 ,936
Bo
n
d
i
s
s
u
a
n
c
e
c
o
s
t
-
2 ,00
0
-
-
-2 ,000
To
t
a
l
e
x
p en
d
i
t
u
r
e
s
5 ,87
1
,42
5
57
5
,83
3
4 ,54
9
,89
1
38
,23
8
12
9
,668 11 ,165 ,055
EX
C
E
S
S
(
D
E
F
I
C
I
E
N
C
Y
)
O
F
R
E
V
E
N
U
E
S
OV
E
R
E
X
P
E
N
D
I
T
U
R
E
S
68
7
,76
8
(24
8
,46
4
)
(56
0
,71
2
)
70
,93
5
(29
,112 )(79 ,585 )
OT
H
E
R
F
I
N
A
N
C
I
N
G
S
O
U
R
C
E
S
(
U
S
E
S
)
Sa
l e
o
f a
s
s
e
t
s
1 ,77
3
37
4
,45
2
52
,04
8
-
-428 ,273
In
s
u
r
a
n
c
e
p
r
o
c
e
e
d
s
53
2
,31
3
-
71
,99
7
-
-604 ,310
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
e
r
s
-
i
n
1 ,89
0
,71
1
12
5
,85
3
1 ,31
6
,21
4
-
46
,000 3 ,378 ,778
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
e
r
s
-
o
u
t
(2 ,60
2
,16
1
)
(11
8
,00
0
)
-
(58
,75
4
)
-(2 ,778 ,915 )
To
t
a
l
o
t
h
e
r
f
i
n
a
n
c
i
n
g
s
o
u
r
c
e
s
(17
7
,36
4
)
38
2
,30
5
1 ,44
0
,25
9
(58
,75
4
)
46
,000 1 ,632 ,446
NE
T
C
H
A
N
G
E
I
N
F
U
N
D
B
A
L
A
N
C
E
S
51
0
,
4
0
4
13
3
,
8
4
1
87
9
,
5
4
7
12
,
1
8
1
16
,
8
8
8
1,552,861
FU
N
D
B
A
L
A
N
C
E
S
,
B
E
G
I
N
N
I
N
G
O
F
Y
E
A
R
3,
1
9
6
,
4
9
6
55
3
,
6
5
5
1,
8
8
5
,
6
4
3
17
5
,
6
2
4
(5
,
6
6
8
)
5,805,750
PR
I
O
R
P
E
R
I
O
D
A
D
J
U
S
T
M
E
N
T
-
-
(3
,
5
0
0
,
0
0
0
)
-
-(3,500,000)
FU
N
D
B
A
L
A
N
C
E
S
,
B
E
G
I
N
N
I
N
G
O
F
Y
E
A
R
-
R
E
S
T
A
T
E
D
3,
1
9
6
,
4
9
6
55
3
,
6
5
5
(1
,
6
1
4
,
3
5
7
)
17
5
,
6
2
4
(5
,
6
6
8
)
2,305,750
FU
N
D
B
A
L
A
N
C
E
S
,
E
N
D
O
F
Y
E
A
R
3 ,70
6
,90
0
$
68
7
,49
6
$
(7
3
4
,81
0
)
$
18
7
,80
5
$
11
,220
$
3 ,858 ,611 $
- 2
3
-
Ci
t
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
ST
A
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M
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O
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R
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V
E
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S
,
E
X
P
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D
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S
,
A
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A
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E
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I
N
FU
N
D
B
A
L
A
N
C
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-
G
O
V
E
R
N
M
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N
T
A
L
F
U
N
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S
Fo
r
t
h
e
y
e
a
r
e
n
d
e
d
S
e
p
t
e
m
b
e
r
3
0
,
2
0
1
6
Se
e
a
c
c
o
m
p
a
n
y
i
n
g
n
o
t
e
s
a
n
d
i
n
d
e
p
e
n
d
e
n
t
a
u
d
i
t
o
r
'
s
r
e
p
o
r
t
Net changes in fund balance - total governmental funds 1,552,861$
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 are allocated over
their estimated useful lives as functional expense when the cost is above
the capitalization threshhold. The activity is reconciled as follows:
Cost of assets capitalized, net of retirements 3,467,648
Depreciation expense (1,053,485)
Sale and disposition of assets that are reported as receipts of current financial
resources in the government funds, but are reported as a reduction of assets
and a net gain or lossin that government-wide statements (375,394)
Repayment of bond principal is an expenditure in the
govermental funds, but the repayment reduces long-term liabilities
in the statement of net position. 570,000
Income that is recognized as current financial resources, but are not
reported as revenue at the government-wide statements 139,975
Income recognized at the government-wide statements that is not a current financial
resource in the government funds.(1,652,250)
Changes in liabilities reported in the statement of net position that do not require
the use of current financial resources, and therefore, the change is not reported
in governmental funds, but is reported in the statement of activities.(172,117)
Transfers of contruction in progress from the general government to proprietary funds
assets that are not current financial resources in the government funds (6,997,491)
Change in net position of governmental activities (4,520,253)$
See accompanying notes and independent auditor's report
- 24 -
City of Blair, Nebraska
GOVERNMENTAL FUNDS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
For the year ended September 30, 2016
TO THE STATEMENT OF ACTIVITIES
Water Sewer Total
CURRENT ASSETS
Cash 4,240,273$ 254,832$ 4,495,105$
Accounts receivable - Utilities/user fees 1,258,232 202,546 1,460,778
Prepaid expense 9,385 2,937 12,322
Total current assets 5,507,890 460,315 5,968,205
NON-CURRENT ASSETS
Restricted assets
Bond and interest sinking fund cash
and investments 1,935,935 239,758 2,175,693
Total non-current assets 1,935,935 239,758 2,175,693
CAPITAL ASSETS
Land 373,908 49,875 423,783
Construction in progress 68,054 5,379 73,433
Infrastructure 21,516,401 3,223,677 24,740,078
Buildings 39,297,103 6,310,834 45,607,937
Equipment 1,717,032 1,186,724 2,903,756
Accumulated depreciation (20,091,740) (5,397,678) (25,489,418)
Total capital assets 42,880,758 5,378,811 48,259,569
TOTAL ASSETS 50,324,583$ 6,078,884$ 56,403,467$
CURRENT LIABILITIES
Accounts payable 317,272$ 74,285$ 391,557$
Accrued expenses 119,626 52,304 171,930
Accrued interest 252,972 31,025 283,997
Deposits 1,700 - 1,700
Registered warrants - - -
Unearned revenue - - -
Bonds payable, current portion 1,451,528 119,123 1,570,651
Total current liabilities 2,143,098 276,737 2,419,835
NON-CURRENT LIABILITIES
Bonds payable, net of current portion 26,051,099 2,513,874 28,564,973
Total liabilities 28,194,197 2,790,611 30,984,808
NET POSITION
Net investment in capital assets 15,378,131 2,745,814 18,123,945
Restricted for debt service 1,935,935 239,758 2,175,693
Unrestricted 4,816,320 302,701 5,119,021
Total net position 22,130,386 3,288,273 25,418,659
Total liabilities and net position 50,324,583$ 6,078,884$ 56,403,467$
- 25 -
ASSETS
LIABILITIES AND NET POSITION
Enterprise Funds
City of Blair, Nebraska
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2016
See accompanying notes and ndependent auditor's report
Water Sewer Total
OPERATING REVENUES
Charges for services 7,475,447$ 1,157,080$ 8,632,527$
Sale of merchandise 31,530 - 31,530
Forfeited discounts 13,824 - 13,824
Other 24,791 6,533 31,324
Total operating revenues 7,545,592 1,163,613 8,709,205
EXPENSES
Personnel 1,141,824 421,630 1,563,454
Operating expenses 568,162 265,556 833,718
Utilities 821,475 68,418 889,893
Chemicals 1,073,779 43,580 1,117,359
Materials and supplies 66,240 10,109 76,349
Rental expense - - -
Depreciation 1,515,724 269,474 1,785,198
Total expenses 5,187,204 1,078,767 6,265,971
OPERATING INCOME 2,358,388 84,846 2,443,234
NON-OPERATING REVENUES (EXPENSES)
Insurance recoveries 871,211 35,075 906,286
Interest income 11,235 799 12,034
Miscellaneous revenues 10,000 - 10,000
Interest expense (815,082) (177,357) (992,439)
Bonding costs (122,108) - (122,108)
Total nonoperating revenues (expenses) (44,744) (141,483) (186,227)
INCOME (LOSS) BEFORE TRANSFERS 2,313,644 (56,637) 2,257,007
OPERATING TRANSFERS
Operating transfers - in 6,477,139 576,780 7,053,919
Operating transfers - out (656,291) - (656,291)
Total operating transfers 5,820,848 576,780 6,397,628
CHANGE IN NET POSITION 8,134,492 520,143 8,654,635
13,995,894 2,768,130 16,764,024
NET POSITION, END OF YEAR 22,130,386$ 3,288,273$ 25,418,659$
- 26 -
City of Blair, Nebraska
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the year ended September 30, 2016
See accompanying notes and independent auditor's report
Enterprise Funds
NET POSITION, BEGINNING OF YEAR
Water Sewer Total
Cash received from customers 6,979,322$ 1,130,419$ 8,109,741$
Cash received from interfund services provided - - -
Cash payments to suppliers (2,524,728) (472,966) (2,997,694)
Cash payments to employees (1,141,871) (416,624) (1,558,495)
Cash paid for interfund services used - - -
Cash provided from operating activities 3,312,723 240,829 3,553,552
CASH FLOWS FROM NON-CAPITAL
FINANCIAL ACTIVITIES
Operating transfers 5,820,848 576,780 6,397,628
Proceeds from operating grants 10,000 - 10,000
Cash provided from non-capital financial
activities 5,830,848 576,780 6,407,628
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (6,969,205) (640,238) (7,609,443)
Insurance proceeds 871,211 35,075 906,286
Gain on purchase of capital assets - - -
Repayment of warrants - - -
Proceeds from issuance of debt 5,550,000 - 5,550,000
Principle paid on notes and bonds (6,081,243) (113,314) (6,194,557)
Interest paid on notes and bonds (836,379) (158,276) (994,655)
Bond issuance costs (122,108) - (122,108)
Cash used from capital and related
financing activities (7,587,724) (876,753) (8,464,477)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from interest earnings 11,235 799 12,034
Disbursements from (to) restricted assets (437,262) - (437,262)
Cash provided from investing activities (426,027) 799 (425,228)
CHANGE IN CASH AND CASH EQUIVALENTS 1,129,820 (58,345) 1,071,475
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 3,110,453 313,177 3,423,630
CASH AND CASH EQUIVALENTS,
END OF YEAR 4,240,273$ 254,832$ 4,495,105$
City of Blair, Nebraska
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
September 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Enterprise Funds
See accompanying notes and independent auditor's report.
-27-
Water Sewer Total
Reconciliation of operating income to net cash
from operating activities
Operating income 2,358,388$ 84,846$ 2,443,234$
Adjustments to reconcile operating income
to net cash from operating activities
Depreciation 1,515,724 269,474 1,785,198
Change in receivables (566,270) (33,194) (599,464)
Change in prepaid expenses (1,729) (520) (2,249)
Change in accounts payable 6,657 (84,783) (78,126)
Change in accrued expenses (47) 5,006 4,959
Total adjustments 954,335 155,983 1,110,318
CASH PROVIDED FROM OPERATING ACTIVITIES 3,312,723$ 240,829$ 3,553,552$
See accompanying notes and independent auditor's report.
-28-
Enterprise Funds
City of Blair, Nebraska
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
September 30, 2016
Pension TIF
Trust Fund Fund 1
ASSETS
Cash -$ 2,793$
Investment in fiscal agent:
Principal investment accounts 7,533,940 -
Guaranteed interest accounts 7,510 -
Total Assets 7,541,450$ 2,793$
LIABILITIES
Held for others -$ 2,793$
Total Liabilities
NET POSITION
Net position (deficit) held in trust for retirement 7,541,450 -
Total Net Position 7,541,450 -
Total liabilities and net position 7,541,450$ 2,793$
See accompanying notes and independent auditor's report
- 29 -
City of Blair, Nebraska
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
September 30, 2016
Pension
Trust Fund
Additions
Contributions
Employer 251,077$
Employee 274,414
Total Contributions 525,491
Investment Earnings
Dividends 24,546
Net increase in the fair value of investments 620,961
Total Additions 1,170,998
Deductions
Administrative expenses 4,672
Cash retirements 122,374
Withdrawals 8,304
Terminations 294,461
Total Deductions 429,811
Change in Net Position 741,187
Net Position, Beginning of Year 6,800,263
Net Position, End of Year 7,541,450$
City of Blair, Nebraska
FIDUCIARY FUNDS
September 30, 2016
See accompanying notes and independent auditor's report
- 30 -
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 31 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of the City of Blair,
Nebraska:
1. Reporting Entity
The City of Blair, Nebraska (the City) is a Municipal Corporation which was
founded and incorporated in 1869. With a population of 8,013, the City of Blair
functions as a City of the First Class under Nebraska Statutes. The City operates
under a Mayor/Council form of government and provides the following services:
public safety, streets, culture and recreation, public improvements, planning and
zoning, water and sewer services, and general administrative services. This report
includes all funds of the City (the “primary government”). There are no
component units.
2. Basis of Accounting/Measurement Focus
The accounts of the City 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
purpose for which they are to be spent and the means by which spending activities
are controlled.
Government-Wide Financial Statements
The City’s government-wide financial statements include a statement of net
position and a statement of activities (including changes in net position). These
statements are prepared using the standards of the Governmental Accounting
Standards Board (GASB), General Accepted Accounting Principles (GAAP).
These statements present summaries of governmental and business-type activities
for the City. These statements are presented on an “economic resources”
measurement focus and the accrual basis of accounting.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 32 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Government-Wide Financial Statements – Continued
Accordingly, all of the City’s assets and liabilities, including capital assets and
infrastructure, as well as long-term debt, are included in the statement of net
position. The statement of activities presents changes in net position. 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 City 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.
All internal balances in the statement of net position and internal transactions in
the statement of activities have been eliminated. The purpose of transfers
between funds was to record proper allocation of expenses.
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.
Fiduciary activities of the City are not included in these statements.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 33 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement
of revenues, expenditures, and changes in fund balances for all major
governmental funds. An accompanying schedule is presented to reconcile and
explain the differences in fund balances as presented in these statements to the net
position presented in the government-wide financial statements. The City has
presented all major funds that meet the qualifications of GASB Statement No. 34,
and has chosen to optionally present as major certain other funds (Keno and
Capital Projects) that do not meet the major fund requirements.
All governmental funds are accounted for on a spending or “current financial
resources” measurement focus and the modified accrual basis of accounting.
Accordingly, capital assets and bonds payable are not 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 fund balances. Under modified accrual
basis of accounting, revenues are recognized in the accounting period in which
they become both measurable and available to finance expenditures of the current
period. Measurable means knowing or being able to reasonably estimate the
amount. Available means collectible within the current period or within 30 days
after year end. Expenditures (including capital outlay) are recorded when the
related fund liability is incurred. An exception to this general rule is principal and
interest on general long-term debt which is recognized when due.
The City reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all
financial resources of the City, except those required to be accounted for in
another fund.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 34 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Governmental Fund Financial Statements – Continued
The Debt Service Fund is used to account for the payment of principal and
interest on general long-term debt. The primary sources of revenue are property
taxes and special assessments.
The Street Fund is used to record transactions in the Street department, as the
State of Nebraska requires an accounting to verify the matching of funds it
provides for this purpose.
The Keno Fund maintains an accounting of Keno gambling activity because the
funds earned are restricted to community betterment projects and require special
state reporting.
The Capital Projects Fund is used to fund capital project construction,
development, improvement, and repairs.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a statement of net position, a
statement of revenues, expenses and changes in fund net position, and a statement
of cash flows for each major proprietary fund. A column representing internal
service funds is also presented in these statements.
Proprietary funds are accounted for using the “economic resources” measurement
focus and the accrual basis of accounting. Accordingly, all assets and liabilities
(whether current or noncurrent) are included on the statement of net position. The
statement of revenues, expenses and changes in fund net position presents
increases (revenues) and decreases (expenses) in total net position. 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.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 35 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Proprietary Fund Financial Statements – Continued
Proprietary funds distinguish operating revenues and expenses from non-
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. Operating expenses for
enterprise funds include the cost of services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
The City reports the following major proprietary funds:
The Water and Sewer Fund accounts for the activities related to the operation of
the City’s water delivery and sewage systems. It operates the water treatment and
sewer treatment plants, water distribution systems, sewer collection systems, and
pump stations.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of net position. The
City’s Fiduciary fund represents an agency fund, which is custodial in nature
(assets equal liabilities) and does not involve measurement of results of
operations. Accordingly, it presents only a statement of fiduciary net position and
does not present a statement of changes in fiduciary net position. Fiduciary funds
are not reflected in the government-wide financial statements because the
resources of those funds are not available to support the City’s own programs.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 36 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Fiduciary Fund Financial Statements – Continued
The agency fund is accounted for on a spending or “economic resources”
measurement focus and the accrual basis of accounting as is the proprietary funds
explained above.
The City reports the following fiduciary fund:
TIF 1 Fund - An agency fund that accounts for the activities related to
redevelopment costs financed by tax incremental finance bonds. The tax
incremental finance bonds are to be paid by the taxes of the redeveloped area.
Pension Trust Funds – Trust funds account for assets held by the City for the
members and beneficiaries of defined benefit and contribution pension plans and
deferred compensation plan. The reporting entity includes the following trust
funds:
Police Pension Accounts for the administration of the police pension
fund under the defined contribution plan.
General Government Accounts for the administration of the non- police
Pension employees' pension funds under the defined
contribution plan.
Deferred Compensation Accounts for the administration of employees that want
Plan to make additional contributions into a plan under the
deferred compensation plan.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 37 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
3. Budgetary Policy and Control
Budgetary Basis of Accounting
The City’s legally adopted budget is not in conformity with accounting principles
generally accepted in the United States of America, but meets the requirements of
the Nebraska Budget Act. 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. Differences between the budgeted basis of accounting and the generally
accepted basis are reconciled in the budget to actual schedule in the required
supplementary information. The City Council sets the property tax levy needed to
support the coming year’s budget in August of each year and submits its budget as
required by State statute.
Budgetary Control
Each fund’s 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 constitute 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 Council. No revisions to the budget were made for
the year ended September 30, 2016.
4. The Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
5. Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand
deposit and short-term investments with original maturities of three months or
less from the date of acquisition.
Investments are restricted and consist of certificates of deposit shown at cost.
There are no significant differences in cost and fair values at September 30, 2016.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 38 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
6. Capital Assets
Capital assets, which include land, buildings, and equipment (furniture, vehicles,
etc.) and infrastructure assets (street systems, storm drains, etc.), are reported in
governmental activities column of the government-wide financial statements.
Capital assets are defined by the City 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 or 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
City qualifies for the exemption under GASB 34 to not retroactively apply the
capitalization requirements of general infrastructure assets.
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
Equipment 10
Small Vehicles 5
Large Vehicles (i.e. Ambulance & Fire Truck) 10 to 20
Buildings 40
Infrastructure 40
7. Property Taxes
Property tax revenue is recognized when collected by the County as the City’s
agent within the current period. There are no property taxes due which are not
delinquent and all delinquent taxes are considered collectible.
The City’s December 31, 2015, valuation was $501,406,370. The levy for the
City for the year ending September 30, 2016, was $0.357902 per $100 of value.
The total tax levy was $1,794,543. 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 service provided.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 39 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
8. Claims and Judgments Payable
The City 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 position. 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.
9. Compensated Absences
General leave for the City includes both vacation and sick pay. Vacation leave is
based on an employee’s length of employment. An employee is allowed to carry
forward each year, on their anniversary date, that year’s earned vacation, plus 40
hours. Sick leave is earned at a rate approved by the personnel manual, which is
currently six (6) hours per month. Sick leave can be accumulated to a maximum
of 840 hours and can only be used for illness, medical care, and care of sick
members of the immediate family per the personnel manual.
Upon termination of employment, an employee is entitled to be compensated for
all accumulated unused vacation pay. Unused sick leave is compensated as
follows: (1) Upon death or retirement, 50% (2) Upon resignation in good
standing, 5% after 10 years of employment increasing to a maximum of 50% after
20 years of employment.
10. 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 City’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. Restricted assets in the governmental funds are related to the
reserved fund balances. Restricted assets in the proprietary funds are related to
the restricted for debt service fund balances.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 40 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
11. Allowance for Doubtful Accounts
The City uses the direct write-off for uncollectable accounts. The City
determined that all receivable balances at September 30, 2016 were collectible.
12. Transfers
Transfers are used to move revenues from the fund that statute or budget requires
to collect them to the fund that statute or budget requires to expend them and to
move unrestricted revenue collected in the general fund to finance various
programs accounted for in other funds in accordance with budgetary
authorizations. Transfers are related to funding for capital projects, debts service,
or reallocations of special revenues. They are intended to maintain fund balances
and allocate the City’s resources.
Interfund transfers were as follows for the year ended September 30, 2016:
Transfers Out:
General
Fund
Debt
Service Street Fund
Capital
Projects
Fund Water Sewer Total
General Fund 1,428,957$ 110,853$ 1,016,214$ 46,000$ -$ 137$ 2,602,161$
Debt Service 118,000 - - - - - 118,000
Keno Fund 43,754 15,000 - - - - 58,754
Capital Projects Fund - - - - - - -
Government-Wide CIP - - - - 6,477,139 520,352 6,997,491
Water 300,000 - 300,000 - - 56,291 656,291
Sewer - - - - - - -
1,890,711$ 125,853$ 1,316,214$ 46,000$ 6,477,139$ 576,780$ 10,432,697$
Transfers In :
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 41 -
NOTE B. DEPOSITS AND INVESTMENTS
Deposits and investments consist of demand deposits and certificates of deposit. The
City maintains a cash pool that is available for all funds. The City’s cash deposits and
certificates of deposit were either entirely insured or collateralized with securities held by
the pledging financial institutions in the City’s name. The carrying amount of the City’s
cash deposits was $14,325,720 at September 30, 2016. The bank balances of the City’s
cash deposits at September 30, 2016, was $14,449,085. The City’s carrying amount and
bank balances include $2,300,693 of certificates of deposit that are part of the Certificate
of Deposit Account Registry Service (CDARS). Each of the certificates of deposit has a
maturity date less than one year.
The City has no formal policy for handling credit risk, interest rate risk, or concentration
risk; however, deposits and investments consist of demand deposits and certificates of
deposits. The statutes of the State of Nebraska require that local governmental units
follow the “prudent man” rule with deposits, and that deposits be secured by collateral
valued at market or par whichever is lower less the amount insured by the Federal
Deposit Insurance Corporation. The City has no deposit and investment policy that
would further limit its deposits, but the City administratively has required all deposits to
be collateralized at 105%.
The City of Blair has a number of cash funds and investments that are restricted due to
donor imposed restrictions or for purposes related to the fund. The certificates of deposit
of $2,175,693 are restricted for the enterprise funds (Water and Sewer) for bond and
interest expenditures. The cash in the Donations Fund is restricted based on the donor
imposed restrictions. The cash in the Economic Development Fund is restricted for
economic development and can only be used if it is approved via vote per the City
Council. The City Council annually decides how much to budget for the fund. The
budget is set not to exceed 1/10 of one per cent of the annual City valuation.
The cash in the Debt Service Fund is restricted for the special assessments pledged for
the payment of the G.O. bonds. The cash in the Capital Projects (TIF 1) is restricted to
pay for the construction projects. If a balance exists after the completion of the projects
at the end of the 15 years, those funds would be required to be returned to the County
Treasurer for distribution to all taxing entities. The cash in the Water Fund is restricted
to pay for the construction and related costs of the water plant expansion contract. If any
funds are still available upon completion of the plant expansion project, the unused funds
could only be used to pay principle and interest on the bond notes. These funds were
received per the bond anticipation note.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 42 -
NOTE B. DEPOSITS AND INVESTMENTS – CONTINUED
The cash in the Rescue Squad Fund is restricted for the use of the City Fire and Rescue
Departments. The cash in the Reuse fund is restricted and can only be used per the Reuse
plan or be forfeited to the Nebraska Department of Economic Development. The cash in
the Keno fund is restricted for Keno purposes.
The following is detail of amounts included in cash, which are restricted for specific
purposes:
Fund Amount
Keno 184,254$
General-Reuse 6
General-Rescue Squad 237,667
Water 1,498,673
Sewer 677,020
Library Fund 250,000
Debt Service 805,416
General-Economic Development 381,069
General-Donations 53,017
4,087,122$
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 43 -
NOTE C. CAPITAL ASSETS
A summary of changes in capital assets is as follows:
Governmental Activities
Balance
September 30,
2015 Increases Decreases
Balance
September 30,
2016
Capital assets not depreciated
Land 1,496,550$ 160,000$ (372,098)$ 1,284,452$
Construction in progress 9,163,208 3,228,314 (12,165,994) 225,528
Total capital assets not depreciated 10,659,758 3,388,314 (12,538,092) 1,509,980
Other capital assets
Infrastructure 15,422,701 1,867,889 - 17,290,590
Buildings 6,596,687 2,296,719 - 8,893,406
Equipment 4,959,223 1,083,228 (143,929) 5,898,522
Total other capital assets 26,978,611 5,247,836 (143,929) 32,082,518
Less accumulated depreciated
Infrastructure (3,456,276) (523,839) - (3,980,115)
Buildings (3,586,818) (181,265) - (3,768,083)
Equipment (3,332,430) (348,381) 140,634 (3,540,177)
Total accumulated depreciation (10,375,524) (1,053,485) 140,634 (11,288,375)
Other capital assets, net 16,603,087 4,194,351 (3,295) 20,794,143
Governmental activities capital assets, net 27,262,845$ 7,582,665$ (12,541,387)$ 22,304,123$
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 44 -
NOTE C. CAPITAL ASSETS – CONTINUED
Business-Type Activities
Balance
September 30,
2015 Increases Decreases
Balance
September 30,
2016
Capital assets not depreciated
Land 423,783$ -$ -$ 423,783$
Construction in progress 2,133,019 483,458 (2,543,044) 73,433
Total capital assets not depreciated 2,556,802 483,458 (2,543,044) 497,216
Other capital assets
Infrastructure 18,129,124 6,610,957 - 24,740,081
Buildings 42,690,427 2,917,507 - 45,607,934
Equipment 2,768,642 140,564 (5,451) 2,903,755
Total other capital assets 63,588,193 9,669,028 (5,451) 73,251,770
Less accumulated depreciated
Infrastructure (2,346,274) (559,996) - (2,906,270)
Buildings (19,261,719) (1,095,980) - (20,357,699)
Equipment (2,101,678) (129,222) 5,451 (2,225,449)
Total accumulated depreciation (23,709,671) (1,785,198) 5,451 (25,489,418)
Other capital assets, net 39,878,522 6,633,657 - 47,762,352
Business-type activities, net 42,435,324$ 8,367,288$ (2,543,044)$ 48,259,568$
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 45 -
NOTE C. CAPITAL ASSETS – CONTINUED
Depreciation expense was charged to governmental activities functions as follows:
Administration 55,375$
Police 82,159
Fire 104,267
Parks 74,138
Library 9,485
Swimming pool 25,958
Animal control 16,720
Rescue Squad 34,763
Streets 650,620
Total Depreciation 1,053,485$
Depreciation was charged to business-type activities as follows:
Water 269,474$
Sewer 1,515,724
Total Depreciation 1,785,198$
NOTE D. BONDS PAYABLE
A summary of the changes followed by principal and interest schedules and is as follows:
Governmental Activities
Balance Balance Due
Interest September 30, September 30, within
Dated Description Rate 2015 Additions Reductions 2016 1 year
12/14/2007
Tax increment
financing bond 4.48% 725,000$ -$ (95,000)$ 630,000$ 100,000$
2/26/2008 Public safety bonds 3.30 - 4.25% 425,000 - (45,000) 380,000 50,000
11/15/2011
General Obligation
Refunding Bond 0.75-3.60% 2,180,000 - (315,000) 1,865,000 160,000
7/28/2015 General Obligation 0.5-2.65% 1,165,000 - (115,000) 1,050,000 110,000
Total general obligation and various purpose 4,495,000$ -$ (570,000)$ 3,925,000$ 420,000$
1/15/2015
Bond Anticipation
Note maturing on
12-15-17 1.00% 3,500,000 - - 3,500,000 -
12/21/2015
Public safety tax
anticipation bonds
maturing on 12-15-25 0.65 - 2.60% - 120,000 - 120,000 10,000
Total governmental activities 7,995,000$ 120,000$ (570,000)$ 7,545,000$ 430,000$
City of Blair, Nebraska
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 46 -
NOTE D. BONDS PAYABLE (CONTINUED)
Business-type Activities
Balance Balance Due
Interest September 30,September 30, within
Dated Description Rate 2015 Additions Reductions 2016 1 year
WATER DEBT
4/29/2002 DEQ Bonds 3.03%391,298 - (391,298) - -
6/15/2010 SRF Loan 2010 2.75-4.35% 6,500,000 - - 6,500,000 -
9/28/2010 2010B Revenue
Bonds 3.25-3.50% 770,000 - - 770,000 380,000
9/28/2010 2010C Revenue
Bonds 2.30% 2,692,572 - (69,945) 2,622,627 71,528
6/5/2012 2012A Revenue
Bonds 2.20-2.50% 9,480,000 - (620,000) 8,860,000 1,000,000
9/28/2012 2012 Bond
Anticipation Notes 2.50% 5,000,000 - (5,000,000) - -
5/15/2013 2013 Bond
Anticipation Notes 2.25% 3,200,000 - - 3,200,000 -
8/24/2016 2016 Revenue Bonds 1.50 - 4.00%- 5,550,000 - 5,550,000 -
Total water 28,033,870$ 5,550,000$ (6,081,243)$ 27,502,627$ 1,451,528$
SEWER DEBT
12/15/2004 2004 Revenue Bonds 3.80-4.25% 300,000$ - $ (75,000)$ 225,000$ 80,000$
3/20/2013 2012 Revenue Bonds 2.10%801,311 - (38,314) 762,997 39,123
9/10/2015 2015 Revenue Bonds 0.95-3.4% 1,645,000 - - 1,645,000 -
Total sewer $ 2,746,311 - $ (113,314) $ 2,632,997 $ 119,123
Total business-type activities $ 30,780,181 $ 5,550,000 $ (6,194,557) $ 30,135,624 $ 1,570,651
NOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 47 -
City of Blair, Nebraska
NOTE D. BONDS PAYABLE - CONTINUED
Governmental Activities
Principal Interest Total
430,000 148,351 578,351
3,940,000 120,880 4,060,880
450,000 92,270 542,270
440,000 79,940 519,940
450,000 66,971 516,971
1,650,000 160,282 1,810,282
185,000 6,660 191,660
7,545,000$ 675,354$ 8,220,354$
Business-type Activities
Principal Interest Total
1,451,528 872,995 2,324,523
5,018,146 859,493 5,877,639
1,384,801 739,902 2,124,703
1,856,494 702,901 2,559,395
1,453,224 646,357 2,099,581
7,383,484 2,424,303 9,807,787
5,853,020 1,289,389 7,142,409
2,073,419 297,687 2,371,106
775,378 69,105 844,483
253,133 7,160 260,293
27,502,627$ 7,909,292$ 35,411,919$
Principal Interest Total
119,123 67,153 186,276
124,949 63,063 188,012
215,793 58,453 274,246
131,654 54,796 186,450
137,533 52,433 189,966
756,519 214,332 970,851
1,066,457 102,876 1,169,333
80,969 1,709 82,678
2,632,997$ 614,815$ 3,247,812$
2022-2026
2027-2031
2032-2036
2037-2041
2042-2043
2017
2018
2019
2020
Year ending September 30,
2020
- 48 -
Year ending September 30,
2017
2018
2019
2020
2021
2022-2026
2027-2031
2032-2033
Total
Bonds issued for the water and sewer funds are collateralized by a pledge of revenues derived and to be
derived from the operations of the water and sewer fund. Sinking fund requirements for Water and
Sewer debt were a total reserve of $2,173,035 at September 30, 2016.
2022-2026
2027
2021
2021
Water Bonds
Sewer Bonds
Total
City of Blair, NebraskaNOTES TO FINANCIAL STATEMENTS
For the year ended September 30, 2016
Total
Year ending September 30,
2017
2018
2019
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 49 -
NOTE E. NET POSITION AND FUND BALANCES
In the government-wide financial statements net position are classified in the following
categories:
Net Investment in Capital Assets - This category groups all capital assets,
including infrastructure, into one component of net position. Accumulated
depreciation on these assets reduces this category.
Restricted Net Position - 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 Position- This category represents the net position of the City
that is not restricted for any project or other purpose.
In the fund financial statements, certain significant changes in the statement require the
City to classify fund balances in the following categories:
Nonspendable fund balance—amounts that cannot be spent because they are
either not in a spendable form (such as inventories and prepaid amounts) or are
legally or contractually required to be maintained intact.
Restricted fund balance—amounts that can be spent only for specific purposes
because of constraints imposed by external providers (such as grantors,
bondholders, and higher levels of government), or imposed by constitutional
provisions or enabling legislation.
Committed fund balance—amounts that can be spent only for specific purposes
determined by a formal action of the government’s highest level of decision-
making authority.
Assigned fund balance—amounts the government intends to use for specific
purposes that do not meet the criteria to be classified as restricted or committed.
Unassigned fund balance—amounts that are available for any purpose; these
amounts can be reported only in the City’s General Fund.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 50 -
NOTE E. NET POSITION AND FUND BALANCES - CONTINUED
The formal spending processes adopted by the City Council allow departments to
encumber funds to make specific purchases that will actually be paid for in the next fiscal
year. The encumbrance must be in the form of an approved purchase order before the
end of the budget fiscal year. Department managers are authorized to make
encumbrances in their respective departments. They are included i n r e s t r i c t e d ,
committed, or assigned fund balances as appropriate. Encumbrances can be made in any
fund and do not lapse at year end.
NOTE F. RISK MANAGEMENT
The City of Blair 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 City 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 G. PENSION PLANS
The City has four pension plans covering substantially all of its employees. Employees
other than policemen, volunteer firefighters or rescue personnel are covered by a defined
contribution plan, either a 414(h) or 457(b) plan. Policemen are covered under a defined
contribution plan established by the statutes of the State of Nebraska. Firefighters or
rescue personnel are covered by the Blair Fire and Rescue Volunteers’ Service Award
Program. This plan is intended to comply with the Volunteer Emergency Responders
Recruitment and Retention Act as set forth in Nebraska Revised Statute and Internal
Revenue Code section 457(e)(11).
The 414(h) pension plan was established on April 1, 1996 and last restated on August 25,
2008 (effective January 1, 2008). All contributions from a minimum of 3% up to 6% of
gross wages in employee contributions and up to a 6% match of gross wage in
contributions from the City are invested with an investment manager.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 51 -
NOTE G. PENSION PLANS - CONTINUED
The employees must have accumulated six months of service, be at least age 21, and
work 40 hours per week to participate in the plan. Employees ar e 1 0 0 % v e s t e d i n
employer contributions after six years of service.
The plan is a single employer plan with the City maintaining fiduciary responsibility for
administration of the plan. Contributions for the year ended September 30, 2016, totaled
$188,060 which consisted of $94,156 contributed by employees and $93,904 contributed
by the City. Contributions are expected to remain relatively level from year to year.
The City may amend, modify, or terminate the 414(h) plan. Funds in the plan cannot be
diverted to any purposes other than for the exclusive benefit of the participants or their
beneficiaries or estates.
The 457(b) pension plan was established on July 1, 2008. The 457(b) plan allows
employees to contribute additional dollars to their pension above the 414(h) requirement
and match. The City will contribute a maximum match of 6% based on a one-to-one
match.
An employee can contribute voluntary pre-tax amounts up to the legal limits as
established by IRS code. The plan is a single employer plan with the City maintaining
fiduciary responsibility for it. Contributions for the year ended September 30, 2016,
totaled $130,996 which consisted of $108,367 contributed by employees and $22,629
contributed by the City. Contributions are expected to remain relatively level from year
to year. The City may amend, modify, or terminate the 457(b) plan. Funds in the plan
cannot be diverted to any purposes other than for the exclusive benefit of the participants
or their beneficiaries or estates.
The policemen are covered under a defined contribution plan established by the statues of
the State of Nebraska. Policemen terminating before retirement age receive payment for
their contributions to date of termination plus interest accrued and the vested portion of
the City’s contributions based on the statues of the State of Nebraska. The City has
fiduciary responsibility for the plan and it is a single employer plan only. Contributions
of $140,306 for the year ended September 30, 2016 were 12% of gross wages, which
complies with statutory requirements. The City contributed 6% of gross wages and the
policemen contributed 6%. The City expects contributions to remain relatively level
from year to year. The contributions are not actuarially determined. All qualifying
police payroll was covered in 2016.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 52 -
NOTE G. PENSION PLANS – CONTINUED
The Blair Fire and Rescue Volunteers’ Service Award Program became effective October
1, 2008, and covers firefighters or rescue personnel. This plan complies with the
Volunteer Emergency Responders Recruitment and Retention Act as s e t f o r t h i n
Nebraska Revised Statute and Internal Revenue Code section 457(e)(11). To qualify as a
participant for any year of service, one must accumulate at least fifty points during such
year of service. For each year of service in which one qualifies as a participant, the City
will determine contribution amount and allocated to the account which shall not exceed
$3,000, and shall not be less than $100. The City’s contribution for the year ended
September 30, 2016, totaled $62,400.
NOTE H. RECEIVABLES
1. Accounts Receivable
Accounts receivable of the business-type activities consists of utilities accounts
receivable (100% of receivable). Accounts receivable of the governmental
activities consists of special assessments (57.7%), sales taxes (28.4%), grants
receivable (4.9%), property taxes (8.6%) and other (0.4%) receivables.
2. Notes Receivable
Notes receivable in the governmental-activities at September 30, 2016, consist of
Community Development Block Grant funds received by the City. These funds
were required to be loaned to a benefited business for eligible economic
development public infrastructure costs. The CDBG note receivable was
$400,000. If the benefited business meets certain specific job creation and job
maintenance requirements, as defined by the State of Nebraska Department of
Economic Development, the note can be forgiven. The benefited business’
progress towards the job creation and job maintenance requirements will be
examined on an ongoing basis. To date $350,000 of this note has been forgiven.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 53 -
NOTE H. RECEIVABLES – CONTINUED
2. Notes Receivable – Continued
The City also entered into a 66-month loan agreement with the benefited business
to loan up to $800,000 with an interest rate of 8%. The City’s agreement allows
the loan to be forgiven if certain general job creation and job maintenance
requirements, as defined by the City, are met. The likelihood that these general
job creation and job maintenance requirements are not met is considered to be
very low. Therefore, the City has fully discounted the note receivable to zero for
the year ended September 30, 2016.
NOTE I. SPECIAL ASSESSMENTS RECEIVABLE
The City’s special assessments outstanding as of September 30, 2016, are composed of
special assessment principle of $802,731.
The delinquent special assessments at September 30, 2016 are 16.74% of those
outstanding. No special assessments have been pledged to specific debt, although special
assessments principle and interest is reserved for various purpose bonds payments only.
NOTE J. CONCENTRATION OF CREDIT RISK
All of the receivables of the City proprietary funds and special assessments in the debt
service fund are from the local Blair area, thereby 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. Cargill, Inc. is a major water and
sewer customer for the City. Cargill, Inc. represents 75.1% of water and sewer sales for
the year ended September 30, 2016. Although Cargill represents 86.5% of water sales,
t h e C i t y h a s a c o n t r a c t w i t h t h e c o m p a n y t h a t s e c u r e s a m i n i m u m monthly revenue
stream for payment of the water debt through June 2032, which minimizes the risk for
payment of water bonds.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 54 -
NOTE K. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
During the year, the Authority adopted GASB Statement No. 72 Fair Value Measurement
and Application and GASB Statement No. 79 Certain External Investment Pools and
Pool Participants. These Statements address accounting and financial reporting issues
related to fair value measurements and reporting of external investment pools. The
adoption of this standard did not have an impact on the financial statements of the
Authority.
The Authority also adopted GASB issued Statement No. 76 The Hierarchy of Generally
Accepted Accounting Principles for State and Local Governments. This Statement
reduces the Generally Accepted Accounting Principles (GAAP) hierarchy to two
categories of authoritative GAAP and addresses the use of authoritative and non-
authoritative literature in the event that the accounting treatment for a transaction or other
event is not specified within a source of authoritative GAAP.
NOTE L. NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
In June 2015, GASB issued Statement No. 73 Accounting and Financial Reporting for
Pensions and Related Assets That Are Not within the Scope of GASB Statement No. 68,
and Amendments to Certain Provisions of GASB Statements No. 67 and 68; GASB
Statement No. 74 Financial Reporting for Postemployment Benefit Plans other than
Pension plans; GASB Statement No. 78 Pensions Provided through Certain Multiple-
Employer Defined Benefit Pension Plan; and GASB Statement No. 82 Pension Issues –
an Amendment of GASB Statements No. 67, No. 68, and No. 73. The primary objective of
these Statements is to improve accounting and financial reporting by state and local
governments for pensions. Adoption of these pronouncements will not have a significant
effect on the financial statements of the Authority.
In August 2015, GASB issued Statement No. 77 Tax Abatement Disclosures. This
Statement improves financial reporting by giving the users essential information that is
not consistently or comprehensively reported to the public at present. Disclosure of
information about the nature and magnitude of tax abatements will make these
transactions more transparent to the financial users.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2016
- 55 -
NOTE L. NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED –
CONTINUED
In January 2016, GASB issued Statement No. 80 Blending Requirements for Certain
Components Units – an Amendment of GASB Statement No. 14. This Statement amends
the blending requirements for the financial statement presentation of component units of
all state and local governments. The additional criterion requires blending of a
component unit incorporated as a not-for-profit corporation in which the primary
government is the sole corporate member. The additional criterion does not apply to
component units included in the financial reporting entity pursuant to the provisions of
Statement No. 39, Determining Whether Certain Organizations Are Component Units.
These Statements are effective for the Authority’s year ending September 30, 2017.
NOTE M. NEGATIVE FUND BALANCE
The Street fund has a negative fund balance of $734,810. The governmental fund has a
negative unassigned fund balance as a result of overspending for specific purposes for
which amounts had been committed.
NOTE N. PRIOR PERIOD ADJUSTMENT
If the necessary legal steps and the ability to consummate refinancing criteria have not
been met as of yearend, then revenue anticipation notes should be reported as a liability
in the governmental fund receiving proceeds, as well as, in the government-wide
statement of net position. The beginning fund balance for the Street fund has been
adjusted by $3,500,000 to properly report the bond anticipation notes issued on January
15, 2015, and maturing on December 15, 2017, as a current liability on the governmental
funds balance sheet. The net impact is that the Street fund beginning and ending fund
balance was decreased by $3,500,000 and the liabilities were increased by the same
amount.
REQUIRED SUPPLEMENTAL INFORMATION
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Taxes 4,428,200$ 4,441,842$ (13,642)$
Charges for services 1,500,210 1,446,095 54,115
Interest income 8,580 6,952 1,628
Other revenues 777,700 638,735 138,965
Total revenues 6,714,690 6,533,624 181,066
EXPENDITURES
Administration 1,641,006 671,177 969,829
Police Department 2,040,550 1,807,914 232,636
Fire Department 397,677 266,896 130,781
Parks Department 999,734 983,540 16,194
Library 448,182 465,080 (16,898)
Swimming pool 65,050 41,655 23,395
Zoning 389,530 296,329 93,201
Mitigation 20,000 10,104 9,896
Insurance 958,660 925,528 33,132
Animal control 105,110 106,972 (1,862)
Donated funds 67,198 42,774 24,424
Rescue squad 142,250 125,705 16,545
Reuse 50,000 50,000 -
Economic development 450,000 76,950 373,050
Total expenditures 7,774,947 5,870,624 1,904,323
REVENUES OVER (UNDER) EXPENDITURES (1,060,257) 663,000 (1,723,257)
OTHER FINANCING SOURCES (USES)
Sale of assets 5,000 1,773 3,227
Bond proceeds 230,000 - 230,000
Insurance proceeds 420,000 532,313 (112,313)
Operating transfers - in 1,966,350 1,890,711 75,639
Operating transfers - out (3,545,233) (2,602,161) (943,072)
Total other financing sources (uses)(923,883) (177,364) (746,519)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER SOURCES (1,984,140) 485,636 (2,469,776)$
FUND BALANCE - BEGINNING OF YEAR 2,724,678 2,724,678
FUND BALANCE - END OF YEAR 740,538$ 3,210,314
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
For the year ended September 30, 2016
GENERAL FUND
See independent auditor's report
- 57 -
FUND BALANCE - END OF YEAR 3,210,314$
471,818
Accrual adjustment for receivables 25,569
Accrual adjustments for payables (801)
3,706,900$
- 58 -
See independent auditor's report
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND - CONTINUED
For the year ended September 30, 2016
City of Blair, Nebraska
An explanation of the differences between budgetary inflows and outflows
and revenues and expenditures determined in accordance with generally
accepted accounting principles follows:
The budget fund balance at the beginning of the year is a based on
cash reserves rather than fund balance.
General Fund Balance
Accrual adjustments made because the City budgets for revenues and
expenditures on the cash basis, rather than on the modified accrual
basis.
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Taxes
Property tax 1,530,000$ 1,509,463$ 20,537$
Sales tax 2,400,000 2,461,914 (61,914)
Motor vehicle tax 154,400 170,345 (15,945)
Occupation and franchise tax 273,000 225,285 47,715
Other taxes 70,800 74,835 (4,035)
Total taxes 4,428,200 4,441,842 (13,642)
Charges for services
Business licenses and permits 228,050 190,051 37,999
Library 12,200 10,201 1,999
Equipment rental 69,000 68,482 518
Cemetery lots 14,000 13,500 500
Insurance 949,860 945,190 4,670
Grave openings 30,000 21,850 8,150
Towing 17,000 13,437 3,563
Rescue squad 152,000 155,449 (3,449)
Other fees and charges 5,500 7,945 (2,445)
Sales of fireworks 15,000 15,000 -
RV park 7,600 4,990 2,610
Total charges for services 1,500,210 1,446,095 54,115
INTEREST INCOME 8,580 6,952 1,628
OTHER REVENUES
State grants 233,500 30,608 202,892
Federal grants - - -
Donations 27,500 60,532 (33,032)
Reimbursements 461,000 492,736 (31,736)
Other miscellaneous revenue 55,700 54,859 841
Total other revenues 777,700 638,735 138,965
Total revenues 6,714,690$ 6,533,624$ 181,066$
City of Blair, Nebraska
GENERAL FUND REVENUES
For the year ended September 30, 2016
BUDGETARY COMPARISON SCHEDULE
- 59 -
See independent auditor's report
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Property taxes 253,924$ 246,289$ 7,635$
Other local taxes 50,700 36,999 13,701
Federal funds 20,000 - 20,000
State funds 1,013,266 987,477 25,789
Warrant income - 325,431 (325,431)
Interest income 300 170 130
Other revenue 120,300 96,523 23,777
Total revenues 1,458,490 1,692,889 (234,399)
EXPENDITURES
Salaries 440,158 415,095 25,063
FICA 35,000 30,800 4,200
Employee insurance 190,555 161,118 29,437
Retirement 27,800 25,635 2,165
Legal 3,500 2,400 1,100
Auditing 8,000 8,086 (86)
Engineering 20,000 69,811 (49,811)
Office expense 11,400 13,580 (2,180)
Utilities 10,000 10,287 (287)
Telephone 1,800 2,916 (1,116)
Travel 6,500 7,630 (1,130)
Training 4,700 5,788 (1,088)
Insurance 20,000 24,021 (4,021)
Maintenance 140,000 399,015 (259,015)
Street lighting 140,000 143,506 (3,506)
County fees - 2,397 (2,397)
Car expense 3,400 5,336 (1,936)
Contract landscaping 62,000 69,879 (7,879)
Gas, diesel, and oil 32,000 20,518 11,482
Materials and supplies 162,100 229,454 (67,354)
Rental 30,000 18,907 11,093
Capital outlay
Equipment 187,200 31,809 155,391
Land - 475 (475)
Street improvements 1,824,780 1,340,031 484,749
Total expenditures 3,360,893 3,038,494 322,399
REVENUES OVER (UNDER) EXPENDITURES (1,902,403) (1,345,605) (556,798)
See independent auditor's report
- 60 -
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
STREET FUND
For the year ended September 30, 2016
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES OVER (UNDER) EXPENDITURES (1,902,403)$ (1,345,605)$ (556,798)$
OTHER FINANCING SOURCES
Sale of assets - 52,048 (52,048)
Insurance proceeds 65,000 71,997 (6,997)
Operating transfers - in 1,613,780 816,214 797,566
Total other financing sources 1,678,780 940,259 738,521
REVENUES AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND OTHER SOURCES (223,623) (405,346) 181,723$
FUND BALANCE BEGINNING OF YEAR 567,019 567,019
FUND BALANCE END OF YEAR 343,396$ 161,673
1,318,624
Accrual adjustments for receivables 2,796,290
Accrual adjustments for payables (1,511,397)
1,284,893
Prior Period Adjustment (3,500,000)
(734,810)$
See independent auditor's report
- 61 -
An explanation of the differences between budgetary inflows
and outflows and revenues and expenditures determined in
accordance with generally accepted accounting principles
follows:
The budget fund balance at the beginning of the year is a
based on cash reserves rather than fund balance.
Street Fund Balance
Accrual adjustments made because the City budgets for
revenues and expenditures on the cash basis, rather than on
the modified accrual basis.
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
STREET FUND - CONTINUED
For the year ended September 30, 2016
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Keno/lottery proceeds 110,000$ 109,767$ 233$
Other revenue 40 58 (18)
Total Revenue 110,040 109,825 215
EXPENDITURES
Community betterment project 120,000 13,750 106,250
Other expenses 22,100 24,488 (2,388)
Total expenditures 142,100 38,238 103,862
REVENUES OVER (UNDER) EXPENDITURES (32,060) 71,587 (103,647)
OTHER FINANCING SOURCES (USES)
Operating transfers - out (106,850) (58,753) (48,097)
REVENUES AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER SOURCES (138,910) 12,834 (151,744)$
FUND BALANCE BEGINNING OF YEAR 171,421 171,421
FUND BALANCE END OF YEAR 32,511$ 184,255
The budget fund balance at the beginning of the year is based on cash
reserves rather than fund balance. 4,203
Accrual adjustment for receivables (653)
Accrual adjustments for payables -
Keno Fund Balance 187,805$
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
KENO FUND
For the year ended September 30, 2016
- 62 -
See independent auditor's report
An explanation of the differences between budgetary inflows and outflows and
revenues and expenditures determined in accordance with generally accepted
accounting principles follows:
SUPPLEMENTAL INFORMATION
ASSETS
Restricted cash and cash equivalents 381,069$
Total assets 381,069$
FUND BALANCES
Restricted
Economic development 381,069$
Total fund balances 381,069$
- 64 -
City of Blair, Nebraska
INDIVIDUAL FUND BALANCE SHEET
ECONOMIC DEVELOPMENT FUND, A FUND WITHIN THE GENERAL FUND
September 30, 2016
See independent auditor's report
REVENUES
Interest income 268$
Other revenues 750
Total revenues 1,018
EXPENDITURES
Administration 76,950
Total expenditures 76,950
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (75,932)
OTHER FINANCING SOURCES (USES)
Operating transfers - in 250,000
Total other financing sources 250,000
NET CHANGE IN FUND BALANCES 174,068
FUND BALANCES, BEGINNING OF YEAR 207,001
FUND BALANCES, END OF YEAR 381,069$
- 65 -
City of Blair, Nebraska
INDIVIDUAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT FUND, A FUND WITHIN THE GENERAL FUND
For the year ended September 30, 2016
See independent auditor's report
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e
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u
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a
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s
3
8
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6
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$
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$
2
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4
7
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$
93
,
1
8
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$
17
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3
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0
$
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$
17
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0
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0
$
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$
- $ 2,557,563 $
Re
c
e
i
v
a
b
l
e
s
In
t
e
r
g
o
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e
r
n
m
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l
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Sa
l
e
s
t
a
x
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39
5
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4
1
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- 395,411
Sp
e
c
i
a
l
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s
37
7
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- 377
Ot
h
e
r
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2,
6
3
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- 2,630
Du
e
f
r
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o
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y
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r
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a
s
u
r
e
r
10
0
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1
6
5
-
-
-
-
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-
-
-
- 100,165
Re
s
t
r
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d
c
a
s
h
a
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e
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Ca
s
h
25
0
,
0
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1
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6
6
7
-
-
-
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53
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1
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6
3
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1
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9
796,759
Ce
r
t
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c
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t
e
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f
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e
p
o
s
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t
-
12
5
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-
-
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- 125,000
To
t
a
l
a
s
s
e
t
s
73
3
,
1
7
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$
23
7
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6
6
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$
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$
3,977,905 $
LI
A
B
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Ac
c
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e
10
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2
$
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$
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4,
3
9
1
$
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$
29
$
-
$
-
$
- $ 104,642 $
Ac
c
r
u
e
d
e
x
p
e
n
s
e
s
37
,
2
5
1
-
-
-
-
-
-
-
-
- 37,251
De
p
o
s
i
t
s
p
a
y
a
b
l
e
67
,
8
0
0
-
-
-
-
-
-
-
-
- 67,800
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
20
5
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2
7
3
-
-
-
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1
-
29
-
-
- 209,693
DE
F
E
R
R
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D
I
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F
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W
S
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F
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S
In
t
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-
-
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Sp
e
c
i
a
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a
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s
m
e
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s
37
7
-
-
-
-
-
-
-
-
- 377
Pr
o
p
e
r
t
y
t
a
x
e
s
60
,
9
3
5
-
-
-
-
-
-
-
-
- 60,935
To
t
a
l
d
e
f
e
r
r
e
d
i
n
f
l
o
w
o
f
r
e
s
o
u
r
c
e
s
61
,
3
1
2
-
-
-
-
-
-
-
-
- 61,312
FU
N
D
B
A
L
A
N
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S
Re
s
t
r
i
c
t
e
d
Do
n
a
t
e
d
f
u
n
d
s
-
-
-
-
-
-
52
,
9
8
8
-
-
- 52,988
Ec
o
n
o
m
i
c
d
e
v
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l
o
p
m
e
n
t
-
-
-
-
-
-
-
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38
1
,
0
6
9
381,069
Re
u
s
e
f
u
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d
s
-
-
-
-
-
-
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-
6
- 6
Re
s
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u
e
s
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a
d
-
23
7
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6
6
7
-
-
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-
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- 237,667
As
s
i
g
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e
d
En
c
u
m
b
r
a
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c
e
s
10
0
,
2
2
2
-
-
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4,
3
9
1
-
-
-
-
- 104,613
Un
a
s
s
i
g
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e
d
36
6
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3
6
8
-
2
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4
2
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93
,
1
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1
11
,
1
5
2
10
0
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17
,
0
0
0
-
- 2,930,557
To
t
a
l
f
u
n
d
b
a
l
a
n
c
e
s
46
6
,
5
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0
23
7
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6
6
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4
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93
,
1
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1
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0
52
,
9
8
8
17
,
0
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0
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3
8
1
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0
6
9
3,706,900
To
t
a
l
l
i
a
b
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l
i
t
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e
s
a
n
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s
73
3
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5
$
23
7
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6
6
7
$
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4
4
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7
5
6
$
93
,
1
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1
$
19
,
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3
4
$
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0
$
53
,
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7
$
17
,
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6
$
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8
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$
3,977,905 $
-
6
6
-
Ci
t
y
o
f
B
l
a
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N
e
b
r
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a
CO
M
B
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N
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B
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N
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R
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p
t
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b
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3
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2
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1
6
Se
e
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n
d
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t
a
u
d
i
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r
'
s
r
e
p
o
r
t
Economic Total
Ge
n
e
r
a
l
R
e
s
c
u
e
S
a
l
e
s
T
a
x
I
n
s
u
r
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e
H
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/
M
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l
C
D
B
G
D
o
n
a
t
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o
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s
C
a
p
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al
O
u
t
l
a
y
R
e
u
s
e
D
e
v
e
l
o
p
m
e
n
t
G
e
n
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r
a
l
Fu
n
d
S
q
u
a
d
F
u
n
d
F
u
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d
F
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d
T
a
x
F
u
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d
F
u
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d
F
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R
e
s
e
r
v
e
F
u
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d
F
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F
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d
F
u
n
d
RE
V
E
N
U
E
S
Ta
x
e
s
1
,
9
7
0
,
4
2
7
$
-
$
2
,
4
5
7
,
9
9
6
$
-
$
3
8
,
7
9
4
$
-
$
-
$
-
$
-
$
-
$ 4,467,217 $
Ch
a
r
g
e
s
f
o
r
s
e
r
v
i
c
e
s
3
4
5
,
4
5
6
1
5
5
,
4
4
9
-
9
4
5
,
1
9
0
-
-
-
-
-
-
1,446,095
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
3
2
,
0
2
0
-
4
5
6
,
7
9
0
-
-
-
2
0
,
1
7
6
-
-
-
508,986
In
t
e
r
e
s
t
i
n
c
o
m
e
4
,
5
0
7
4
9
3
1
,
6
9
9
1
0
0
1
9
-
6
0
-
-
2
6
8
7,146
Ot
h
e
r
r
e
v
e
n
u
e
s
4
7
,
4
7
5
-
-
-
-
-
3
1
,
5
2
4
-
5
0
,
0
0
0
7
5
0
1
2
9
,
7
4
9
To
t
a
l
r
e
v
e
n
u
e
s
2
,
3
9
9
,
8
8
5
1
5
5
,
9
4
2
2
,
9
1
6
,
4
8
5
9
4
5
,
2
9
0
3
8
,
8
1
3
-
5
1
,
7
6
0
-
5
0
,
0
0
0
1
,
0
1
8
6,559,193
EX
P
E
N
D
I
T
U
R
E
S
Ad
m
i
n
i
s
t
r
a
t
i
o
n
4
7
4
,
9
3
1
-
1
2
6
,
7
8
7
9
2
5
,
5
2
7
7
,
3
9
1
-
-
-
5
0
,
0
0
0
7
6
,
9
5
0
1,661,586
Po
l
i
c
e
D
e
p
a
r
t
m
e
n
t
1
,
7
7
2
,
1
5
5
-
-
-
-
-
-
-
-
-
1,772,155
Fi
r
e
D
e
p
a
r
t
m
e
n
t
1
1
8
,
8
2
9
1
2
5
,
4
7
1
-
-
-
-
-
-
-
-
244,300
Pa
r
k
s
D
e
p
a
r
t
m
e
n
t
5
4
4
,
0
6
4
-
-
-
-
-
-
-
-
-
544,064
Li
b
r
a
r
y
4
6
6
,
9
9
0
-
-
-
-
-
-
-
-
-
466,990
Sw
i
m
m
i
n
g
p
o
o
l
4
1
,
1
8
5
-
-
-
-
-
-
-
-
-
41,185
Zo
n
i
n
g
2
8
7
,
2
6
3
-
-
-
-
-
-
-
-
-
287,263
Ca
p
i
t
a
l
o
u
t
l
a
y
6
8
8
,
8
2
2
-
-
-
5
,
8
4
3
-
1
2
,
2
0
8
-
-
-
706,873
An
i
m
a
l
c
o
n
t
r
o
l
1
0
6
,
3
3
9
-
-
-
-
-
-
-
-
-
106,339
Mi
t
i
g
a
t
i
o
n
1
0
,
1
0
4
-
-
-
-
-
-
-
-
-
10,104
Do
n
a
t
e
d
f
u
n
d
s
-
-
-
-
-
-
3
0
,
5
6
6
-
-
-
30,566
To
t
a
l
e
x
p
e
n
d
i
t
u
r
e
s
4
,
5
1
0
,
6
8
2
1
2
5
,
4
7
1
1
2
6
,
7
8
7
9
2
5
,
5
2
7
1
3
,
2
3
4
-
4
2
,
7
7
4
-
5
0
,
0
0
0
7
6
,
9
5
0
5,871,425
EX
C
E
S
S
(
D
E
F
I
C
I
E
N
C
Y
)
O
F
R
E
V
E
N
U
E
S
OV
E
R
E
X
P
E
N
D
I
T
U
R
E
S
(
2
,
1
1
0
,
7
9
7
)
3
0
,
4
7
1
2
,
7
8
9
,
6
9
8
1
9
,
7
6
3
2
5
,
5
7
9
-
8
,
9
8
6
-
-
(
7
5
,
9
3
2
)
687,768
OT
H
E
R
F
I
N
A
N
C
I
N
G
S
O
U
R
C
E
S
(
U
S
E
S
)
Sa
l
e
o
f
a
s
s
e
t
s
1
,
7
7
3
-
-
-
-
-
-
-
-
-
1,773
In
s
u
r
a
n
c
e
p
r
o
c
e
e
d
s
5
3
2
,
3
1
3
-
-
-
-
-
-
-
-
-
532,313
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
e
r
s
-
i
n
1
,
6
3
2
,
7
1
1
-
-
-
-
-
-
8
,
0
0
0
-
2
5
0
,
0
0
0
1,890,711
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
e
r
s
-
o
u
t
(
8
,
0
0
0
)
-
(
2
,
5
2
9
,
1
6
1
)
(
2
5
,
0
0
0
)
(
4
0
,
0
0
0
)
-
-
-
-
-
(2,602,161)
To
t
a
l
o
t
h
e
r
f
i
n
a
n
c
i
n
g
s
o
u
r
c
e
s
2
,
1
5
8
,
7
9
7
-
(
2
,
5
2
9
,
1
6
1
)
(
2
5
,
0
0
0
)
(
4
0
,
0
0
0
)
-
-
8
,
0
0
0
-
2
5
0
,
0
0
0
(177,364)
NE
T
C
H
A
N
G
E
I
N
F
U
N
D
B
A
L
A
N
C
E
S
4
8
,
0
0
0
3
0
,
4
7
1
2
6
0
,
5
3
7
(
5
,
2
3
7
)
(
1
4
,
4
2
1
)
-
8
,
9
8
6
8
,
0
0
0
-
1
7
4
,
0
6
8
510,404
FU
N
D
B
A
L
A
N
C
E
S
,
B
E
G
I
N
N
I
N
G
O
F
Y
E
A
R
4
1
8
,
5
9
0
2
0
7
,
1
9
6
2
,
1
8
2
,
2
1
9
9
8
,
4
1
8
2
9
,
9
6
4
1
0
0
4
4
,
0
0
2
9
,
0
0
0
6
2
0
7
,
0
0
1
3,196,496
FU
N
D
B
A
L
A
N
C
E
S
,
E
N
D
O
F
Y
E
A
R
4
6
6
,
5
9
0
$
2
3
7
,
6
6
7
$
2
,
4
4
2
,
7
5
6
$
9
3
,
1
8
1
$
1
5
,
5
4
3
$
1
0
0
$
5
2
,
9
8
8
$
1
7
,
0
0
0
$
6
$
3
8
1
,
0
6
9
$ 3,706,900 $
- 6
7
-
Ci
t
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
C
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M
B
I
N
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N
G
S
T
A
T
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M
E
N
T
O
F
R
E
V
E
N
U
E
S
,
E
X
P
E
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Federal
CFDA Federal
Number Expenditures
U.S. Department of Transportation:
Direct Programs:
Highway Safety Cluster:
National Priority Safety Programs 20.616 405d-16-02-04 3,500$
Total Highway Safety Cluster 3,500
Passed through State of Nebraska Department of Roads:
Highway Planning and Construction Cluster:
Federal-Aid Highway Program 20.205 ENH-89(26)1,258
Federal-Aid Highway Program 20.205 URB-6462(1)22,611
Federal-Aid Highway Program 20.205 ENH-89(30)387,828
Total Highway Planning and Construction Cluster 411,697
Total U.S. Department of Transportation 415,197
Executive Office of the President
Passed through Drug Enforcement Administration:
High Intensity Drug Trafficking Areas Program 95.001 4,062
Total Executive Office of the President 4,062
U.S. Department of Homeland Security
Passed through State of Nebraska Emergency Management Agency:
Hazard Mitigation 97.039 FEMA-DR-4013-NE 1,077,242
Total U.S. Department of Homeland Security 1,077,242
Total expenditures of federal awards 1,496,501$
- 68 -
See notes to the schedule of expenditures of federal awards and independent auditor's report.
City of Blair, Nebraska
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended September 30, 2016
Grant/Project NumberFederal grantor/pass-through grantor/program title
City of Blair, Nebraska
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended September 30, 2016
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NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. General
The accompanying schedule of expenditures of federal awards (the Schedule)
presents the activity of all federal financial assistance programs of City of Blair,
Nebraska (the City). The City’s reporting entity is defined in note A to the City’s
financial statements. Federal financial assistance received directly from federal
agencies, as well as passed through other governmental agencies, is included on
the Schedule.
The Schedule presents expenditures paid for each federal award program in
accordance with the Office of Management and Budget (OMB) Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Federal programs are reported as presented in the Catalog of Federal Domestic
Assistance (CFDA), whenever possible.
2. Basis of Accounting
The Schedule is presented on the full accrual basis of accounting.
3. De Minimis Indirect Cost Rate
The City has elected not to charge the 10% de minimis indirect cost rate to its
federal award programs.
NOTE B. CONTINGENCIES
The City receives funds under various federal grant programs, and such awards are to be
expended in accordance with the provisions of the various grants. Compliance with the
grants is subject to audit by various government agencies, which may impose sanctions in
the event of noncompliance. Management believes that is has complied with all aspects
of the various grant provisions and the results of adjustments, if any, relating to such
audits would not have any material financial impact.
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
To the City Council
City of Blair, Nebraska
We have audited, in accordance with the 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, the financial
statements of the governmental activities, the business-type activities, and each major fund of the
City of Blair, Nebraska, as of and for the year ended September 30, 2016, and the related notes to
the financial statements, which collectively comprise the City of Blair, Nebraska’s basic
financial statements, and have issued our report thereon dated February 3, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Blair,
Nebraska’s internal control over financial reporting to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City of
Blair, Nebraska’s internal control over financial reporting. Accordingly, we do not express an
opinion on the effectiveness of City of Blair, Nebraska’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness i s a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
www.hayes-cpa.comWestroads Pointe | 1015 N. 98th St., Suite 200 | Omaha, NE 68114 | T 402-390-2480
Omni Center | 300 West Broadway, Suite 224 | Council Bluffs, IA 51503 | T 712-322-5503
- 71 -
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or, significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Blair, Nebraska’s financial
statements are free from material misstatement, we 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 our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of material noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion
on the effectiveness of the entity’s internal control over financial reporting or on compliance.
This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control over financial reporting and compliance.
Accordingly, this communication is not suitable for any other purpose.
Hayes & Associates, L.L.C.
Omaha, Nebraska
February 3, 2017
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB
THE UNIFORM GUIDANCE
To the City Council
City of Blair, Nebraska
Report on Compliance for Each Major Federal Program
We have audited the City of Blair, Nebraska’s compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and
material effect on the City of Blair, Nebraska’s major federal program for the year ended
September 30, 2016. The City of Blair, Nebraska’s major federal programs is identified in the
summary of auditor’s results section of the accompanying schedule of findings and questioned
costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts,
and grants applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the City of Blair, Nebraska’s major
federal program based on our audit of the types of compliance requirements referred to above.
We conducted our 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 the
audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Those standards and Uniform Guidance require that we 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 City of Blair,
Nebraska’s compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
www.hayes-cpa.comWestroads Pointe | 1015 N. 98th St., Suite 200 | Omaha, NE 68114 | T 402-390-2480
Omni Center | 300 West Broadway, Suite 224 | Council Bluffs, IA 51503 | T 712-322-5503
- 73 -
We believe that our audit provides a reasonable basis for our opinions on compliance for the
major federal program. However, our audit does not provide a legal determination of the City of
Blair, Nebraska’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Blair, Nebraska, complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on its
major federal programs for the year ended September 30, 2016.
Report on Internal Control Over Compliance
Management of the City of Blair, Nebraska is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to
above. In planning and performing our audit of compliance, we considered the Housing
Authority’s internal control over compliance with the types of requirements that could have a
direct and material effect on the major federal program to determine the auditing procedures that
are appropriate in the circumstances for the purpose of expressing an opinion on compliance for
the major federal program and to test and report on internal control over compliance in
accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of the City of Blair, Nebraska’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
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The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
Hayes & Associates, L.L.C.
Omaha, Nebraska
February 3, 2017
City of Blair, Nebraska
SCHEDULE OF FINDINGS AND QUESTIONED COST
For the year ended September 30, 2016
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I. SUMMARY OF AUDIT RESULTS
Financial Statements
T y p e o f a u d i t o r s ’ r e p o r t s i s s u e d : Unmodified
Internal controls over financial reporting:
M a t e r i a l w e a k n e s s e s i d e n t i f i e d : No
Significant deficiencies identified: No
Noncompliance material to financial statements noted: No
Federal Awards
Internal control over major programs:
M a t e r i a l w e a k n e s s e s i d e n t i f i e d : No
S i g n i f i c a n t d e f i c i e n c i e s i d e n t i f i e d : No
Type of auditors’ report issued on
c o m p l i a n c e f o r e a c h m a j o r p r o g r a m : Unmodified
Any audit findings disclosed that are required to
Be reported in accordance with Section 200.516
o f t h e U n i f o r m G u i d a n c e : No
Identification of major programs:
CFDA Numbers Name of Federal Program or Cluster
97.039 Hazard Mitigation Grant
City of Blair, Nebraska
SCHEDULE OF FINDINGS AND QUESTIONED COST – CONTINUED
For the year ended September 30, 2016
- 76 -
I. SUMMARY OF AUDIT RESULTS – CONTINUED
Dollar threshold used to distinguish between
Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee: Yes
II. FINDINGS - FINANCIAL STATEMENTS
None noted
III. FINDINGS AND QUESTIONED COSTS—MAJOR FEDERAL AWARD PROGRAMS
None noted
City of Blair, Nebraska
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the year ended September 30, 2016
- 77 -
II. FINDINGS - FINANCIAL STATEMENTS
None noted
III. FINDINGS AND QUESTIONED COSTS—MAJOR FEDERAL AWARD PROGRAMS
None noted