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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