FY1998 Independent Audit ReportBLAIR AIRPORT AUTHORITY
SEPTEMBER 30, 1998
1904 SOUTH STREET
BOX 486
BLAIR, NEBRASKA 68008
CERTIFIED PUBLIC ACCOUNTANT
January 18, 1999
Honorable Chairman and Members
of the Blair Airport Authority Board
Blair, Nebraska
"Independent Auditor's Report"
RESIDENCE:
(402) 463-52.53
OFFICE:
(402) 426-4080
I have audited the accompanying general-purpose financial statements of the
Blair Airport Authority, as of and for the year ended September 30, 1998. These
financial statements are the responsibility of the Blair Airport Authority's manage-
ment. My responsibility is to express an opinion on these financial statements based
on my audit.
I conducted my audit in accordance with generally accepted auditing standards
and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards
require that I plan and perform the audit to obtain reasonable assurance about wheth-
er the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. I believe that my audit provides a reasonable
basis for my opinion.
In my opinion, the general-purpose financial statements referred to above
present fairly, in all material respects, the financial position of the Blair Air-
port Authority, as of September 30, 1998, and the results of its operations for the
year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, I have also issued my
report dated January 18, 1999 on my consideration of the Blair Airport Authori-
ty's internal control over financial reporting and my tests of its compliance
with certain provisions of laws, regulations, contracts and grants.
N
Edward W. Schroeder
Certified Public Accountant
ASSETS
BLAIR AIRPORT AUTHORITY
COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS
SEPTEMBER 30, 1998
General Fund
Cash equivalents
$65,922
Accounts Receivable
207
Due from the County
Treasurer
1,657
Real Estate and Equipment
-
Amount to be provided
for retirement of
general long-term debt
-
TOTAL ASSETS
86
LIABILITIES
Accounts payable 7,034
Bonds payable -
FUND BALANCES
General fixed assets -
Fund balance - Unreserved $60,752
Total Fund Balance $60,752
TOTAL LIABILITIES AND
FUND BALANCES 60,752
General General
Fixed Assets Long -Term Debt
$1,346,820 -
$535,000
1,346,820 5535,000
$535,000
$1,346,820 -
$1,346,820 $535,000
51,346,820 $535.000
See Notes to Financial Statements.
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BLAIR AIRPORT AUTHORITY
STATEMENT OF REVENUES, AND EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1998
See Notes to Financial Statements.
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Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES:
Property taxes
$ 24,480
$ 25,802
$ 1,322
In -lieu of tax
200
1,096
896
Rent income
41,700
41,616
(84)
Gas sales
20,170
18,238
(1,932)
Interest
1,200
2,102
902
Grants
1,344,780
-
(1,344,780)
Bond proceeds
93,220
-
(93,220)
Total revenues
1,525,750
88,854
(1,436,896)
EXPENDITURES:
Audit fees
1,000
1,500
(500)
County commission
220
448
(228)
Dues and training
900
-
900
Engineering
40,000
8,720
31,280
Equipment rental
2,000
775
1,225
Gas/Oil/Diesel
15,000
15,420
(420)
Insurance
8,000
6,860
1,140
Janitorial
500
928
(428)
Legal
7,500
72
7,428
Maintenance and repair
11,000
8,677
2,323
Mowing/snow
5,000
7,931
(2,931)
Office expense
500
137
363
Printing & publications
1,200
445
755
Travel
-
572
(572)
Utilities
3,750
2,770
980
Capital outlay - restroom
1,427,000
12,760
1,414,240
Bond principal
15,000
15,000
-
Bond interest
43,065
43,065
-
Total expenditures
1,581,635
126,080
1,455,555
REVENUES AND OTHER SOURCES OVER
(UNDER) EXPENDITURES AND OTHER
USES
(55,885)
(37,226)
S 18,659
FUND BALANCE - September 30, 1997
97,978
97,978
FUND BALANCE - September 30, 1998
S 42,093
S 60,752
See Notes to Financial Statements.
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BLAIR AIRPORT AUTHORITY
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
Balance
Sept 30,
1997
FIXED ASSETS:
Real estate $1,321,028
Equipment 13,032
TOTALS $1,334,060
Balance
Sept 30,
Additions Dispositions 1998
$ 12,760 $ - $1,333,788
- - 13,032
12,760 $ - $1,34
See Notes to Financial Statements
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BLAIR AIRPORT AUTHORITY
STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT
FOR THE YEAR ENDED SEPTEMBER 30, 1998
Balance Balance
Interest Sept 30 Sept 30
Dated Description Rate 1997 Additions Deductions 1998
12/1/96 Airport Authority
Bonds 4.0-5.8 $550,000 $ - $ 15,000 $535,000
See Notes to Financial Statements
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BLAIR AIRPORT AUTHORITY
STATEMENT OF GENERAL OBLIGATION BONDS
PRINCIPAL AND INTEREST REQUIREMENTS
BY YEAR OF MATURITY
SEPTEMBER 30, 1998
Year Ending
Principal
Interest
September 30,
Requirements
Requirements
Total
1999
$ 15,000
$ 27,991
$ 42,991
2000
20,000
27,232
47,232
2001
20,000
26,342
46,342
2002
20,000
25,432
45,432
2003
20,000
24,502
44,502
2004
20,000
23,552
43,552
2005
25,000
22,460
47,460
2006
25,000
21,223
46,223
2007
25,000
19,960
44,960
2008
25,000
18,672
43,672
2009
30,000
17,227
47,227
2010
30,000
15,622
45,622
2011
30,000
13,987
43,987
2012
35,000
12,182
47,182
2013
35,000
10,214
45,214
2014
35,000
8,227
43,227
2015
40,000
6,080
46,080
2016
40,000
3,770
43,770
2017
45,000
5535.000
1,305
$325.980
46,305
860.980
See Notes to Financial Statements
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BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Introduction:
The Blair Airport Authority (Airport) complies with Generally Accepted
Accounting Principles, (GAAP). The Airport's reporting entity applies
relevant Governmental Accounting Standards Board (GASB) pronouncements.
Implementation of a new accounting and reporting standard for risk
financing and related insurance issues is included in this report where
applicable. Comparability with previous years financial reports is not
affected. The accounting and reporting framework and the more significant
accounting principles and practices are discussed in subsequent sections of
this note. The remainder of the notes are organized to provide explana-
tions including required disclosures of the Airport's financial activities
for the fiscal year ended September 30, 1998.
B. Reporting Entity:
All significant activities and organizations in which the Airport
exercises oversight responsibility have been included in the Airport gener-
al-purpose financial statements for the year ended September 30, 1998. The
following criteria regarding manifestation of oversight were considered by
the Airport in its evaluation of Airport organizations and activities:
Financial interdependency: The Airport is responsible for its debts
and is entitled to surpluses. No separate agency receives a financial
benefit nor imposes a financial burden on the Airport.
Election of the government authority: The ,locally elected Airport
Authority Board is exclusively responsible for all public decisions and
accountable for the decisions it makes.
C. Fund Types and Account Groups:
Governmental fund types: Governmental funds use the current financial
resources measurement focus. Only current assets and current liabilities
are generally included on their balance sheets. Their operating statements
present sources and uses of available resources during a given period.
Account groups: The account groups are used to account for fixed
assets and long-term liabilities which are not reported in the respective
governmental funds.
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BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Basis of Accounting:
All Governmental Funds are accounted for using the modified accrual
basis of accounting. Their revenues are recognized when earned and expen-
ditures are recognized when incurred except that property taxes are not
recorded until collected as they are not practicably measurable and inter-
est on general obligation bonds is not recorded until coupons mature.
The Airport does not apply encumbrance accounting in any of its funds.
E. Budgetary Basis:
The Airport's legally adopted budget is not in conformity with general-
ly accepted accounting principles. The budget is prepared and adopted
using the cash basis of accounting whereby revenues budgeted are expected
to be received rather than earned and expenditures budgeted are expected to
be disbursed rather than incurred. There are no significant differences
between the budgeted basis of accounting and the generally accepted basis.
The Airport Board sets the property tax levy needed to support the coming
years budget in August of each year and submits its budget as required by
State Statute.
F. Budgetary Control:
Each funds appropriated budget is prepared on a detailed line item
basis. Revenues are budgeted by source. Expenditures are budgeted by
department. This constitutes the legal level of control. Expenditures may
not exceed appropriations at this level. All budget revisions at this
level are subject to final review by the Airport Board. No revisions to
the budget were made for the year ended September 30, 1998.
G. Investments:
For the purposes of the Statement of Cash Flows the Airport considers
all short-term debt instruments purchased with a maturity of three months
or less to be cash equivalents.
H. Fixed Assets:
All fixed assets are recorded at -cost or estimated cost if actual cost
not available.
Assets in general fixed asset funds are recorded as expenditures at the
time of purchase with the accumulated cost being presented in the general
fixed asset group of accounts for measurement purposes only. Certain
improvements such as roads, bridges, curbs and gutters, streets and side-
walks, drainage systems, and lighting systems are not capitalized. No
depreciation is provided for assets in the general fixed asset group of
accounts.
-continued
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BLAIR AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
I. Deposits and Investments:
Investments consist of Certificates of Deposit or U.S. Government
Securities with current maturities. These investments have no restric-
tions. The deposits are entirely Category 1 which means that the invest-
ments are insured or collateralized with securities held by the entity's
agent. Investments are stated at cost which approximates market value.
Investments allowed are generally U.S. Government Securities, FDIC insured
deposits and others provided by State Statute.
2. PROPERTY TAX CALENDAR
The Airport's December 31, 1997 valuation was $239,363,523. The levy for
the Airport for the year ending September 30, 1998 was .009928 per $100 of
value. The total tax levy was $22,660. Property taxes are due December 31 of
each year and delinquent in halves at May 1 and September 1 of the following
year.
3. CONCENTRATION OF CREDIT RISK
All of the receivables of the Blair Airport Authority are from the local
Blair area therefore creating a concentration of credit risk. If the Blair
area economy was depressed this could have an adverse effect on the collection
of the outstanding accounts receivable.
4. YEAR 2000 STATUS
Due to computer programs written with two digit fields for the year the
functions they perform may be inhibited. The City of Blair projects no materi-
al use of resources to manage this contingency. The City is in the validation
and testing stage of the conversion process at September 30, 1998.
EDWARD W. SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET
BOX 486
BLAIR, NEBRASKA 68008
Honorable Chairman and Members
of the Airport Authority Board
Blair, Nebraska
Dear Gentlemen:
RESIDENCE_,:
(402) 468-5253
OFFICE:
(402) 426-4080
January 18, 1999
"Compliance and Internal Control over financial reporting"
I have audited the financial statements of the Blair Airport Authority as of
and for the year ended September 30, 1998, and have issued my report thereon dated
January 18, 1999. I conducted my audit in accordance with generally accepted audit-
ing standards and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United
States.
Compliance
As part of obtaining reasonable assurance about whether Blair Airport Authori-
ty's financial statements are free of material misstatement, I performed tests of
its compliance with certain provisions of laws, regulations, contracts and grants,
noncompliance with which could have a direct and material effect on the determina-
tion of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of my audit and, accordingly, I do not
express such an opinion. The results of my tests disclosed no instances of noncom-
pliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing my audit, I considered Blair Airport Authority's
internal control over financial reporting in order to determine my auditing pro-
cedures for the purpose of expressing my opinion on the financial statements and not
to provide assurance on the internal control over financial reporting. However, I
noted certain matters involving the internal control over financial reporting and
its operation that I consider to be reportable conditions. Reportable conditions
involve matters coming to my attention relating to significant deficiencies in the
design or operation of the internal control over financial reporting that, in my
judgment, could adversely affect the Blair Airport Authority's ability to record,
process, summarize and report financial data consistent with the assertions of
management in the financial statements. The Blair Airport Authority does not have
adequate separation of duties.
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Honorable Chairman and Members
of the Airport Authority Board
Page 2
A material weakness is a condition in which the design or cooperation of one or
more of the internal control components does not reduce to a relatively low level
the risk that misstatements in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions. My
consideration of the internal control over financial reporting would not necessarily
disclose all matters in the internal control that might be reportable conditions
and, accordingly, would not necessarily disclose all reportable conditions that are
also considered to be material weaknesses. However, I believe none of the report-
able conditions described above is a material weakness.
This report is intended for the information of the audit committee, management
and federal awarding agencies and pass-through entities. However, this report is a
matter of public record and its distribution is not limited.
Edward W. Schroeder
Certified Public Accountant
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