FY2016 Audit Findings AirportH"&- S
ASSOCIATES, L.L.C.
Certified Public Accountants I Consultants
December 22, 2016
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 of
the Blair Airport Authority for the year ended September 30, 2016. Professional standards
require that we provide you with information about our responsibilities under generally accepted
auditing standards, GovernmentAuditing Standards, as well as, certain information related to the
planned scope and timing of our audit. We have communicated such information in our letter to
you dated July 15, 2016.
Professional standards also require that we communicate to you the following information
related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting 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. On October 1, 2015, the Authority implemented, 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 these standard did not have an impact on the financial statements of the
Authority. On October 1, 2015, the Authority also implemented GASB Statement No. 76 The
Hierarchy of Generally Accepted Accounting Principles for State and Local Govermnents. 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.
Westroads Pointe 1 1015 N. 98th St., Suite 200
134 W. Broadway I Council Bluffs, I,
Omaha, NE 68114 1 T402-390-2480
,51503 1 T 712-322-5503
i
F
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.
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. The most sensitive disclosures affecting the financial statements were:
The disclosure of new accounting pronouncements that have not yet been adopted in note
M to the financial statements.
The disclosure of short-term and long-term debt in notes G and H to the financial
statements as there was a significant payoff of short-term notes, and the Authority issued
a significant amount of new long-term debt.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are clearly trivial, and communicate them to the
appropriate level of management. The attached schedule summarizes uncorrected misstatements
of the financial statements. Management has determined that their effects are immaterial, both
individually and in the aggregate, to the financial statements taken as a whole. In addition, none
of the misstatements detected as a result of audit procedures and corrected by management were
material, either individually or in the aggregate, to each opinion unit's financial statements taken
as a whole.
Disagreements with Managenient
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.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated December 22, 2016.
Managemeut Consultations rvith 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 Matters
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 information is intended solely for the use of Airport Authority Board and management of
Blair Airport Authority and is not intended to be and should not be used by anyone other than
these specified parties.
Very truly yours,
1 AYES & ASSOCIATES, LLC