FY2011 Audit Findings Airport1 u 1 S
&ASSOCIATES, L.L.C.
Certified Public Accountants I Consultants
March 27, 2012
Honorable Chairman and Members
Of the Blair Airport Authority Board
Blair Airport Authority, Nebraska
We have audited the financial statements of the governmental activities and each major fund,
and of the Blair Airport Authority for the year ended September 30, 2011. Professional standards
require that we provide you with information about our responsibilities under generally accepted
auditing standards, Government Auditing Standards and OMB Circular A-133, as well as certain
information related to the planned scope and timing of our audit. Professional standards also
require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects ofAccounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the Blair Airport Authority are described in Note A to the
financial statements. As of October 1, 2010, the Blair Airport Authority adopted Government
Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions. This statement impacted the presentation of fund balance on the
governmental financial statements. Also see the additional disclosures in Note K.
We noted no transactions entered into by the governmental unit during the year for which there is
a lack of authoritative guidance or consensus. All significant transactions have been recognized
in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive because
of their significance to the financial statements and because of the possibility that future events
affecting them may differ significantly from those expected. No significant estimates were noted.
Difficulties Encountered in Pei forming the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
MEN
WestroadsPointe 11015N.98thSt. 1 Suite200 Omaha,NE68114 1402,390.2480 I F402.390.0885
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level
of management. The attached schedules summarize the corrected and uncorrected misstatements
of the financial statements. Management has determined that the effects of uncorrected
misstatements are immaterial, both individually and in the aggregate, to the financial statements
taken as a whole.
Disagreements rvith Management
For purposes of this letter, professional standards define a disagreement with management as a
financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction,
that could be significant to the financial statements or the auditor's report. We are pleased to
report that no such disagreements arose during the course of our audit.
Managem.en.t Representations
We have requested certain representations from management that are included in the
management representation letter dated March 27, 2012.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principle to the governmental unit's financial
statements or a determination of the type of auditor's opinion that may be expressed on those
statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the governmental unit's
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
Other Information in Documents Containing Audited Financial Statements
With respect to the supplementary information accompanying the financial statements, we made
certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the
prior period, and the information is appropriate and complete in relation to our audit of the
financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the financial statements or to the financial
statements themselves.
This infoiniation is intended solely for the use of the Airport Authority Board and management
of the Blair Airport Authority and is not intended to be and should not be used by anyone other
than these specified parties.
Very truly yours,
Hayes & Associates, L.L.C.