INDEPENDENT AUDITOR'S REPORT
Fraser Valley Metropolitan Recreation District Fraser, Colorado
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, business-type activities and each major fund of the Fraser Valley Metropolitan Recreation District (the “District”), as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the District’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 an opinion 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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. 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 opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities and each major fund of the Fraser Valley Metropolitan Recreation District, as of December 31, 2016, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages i through iv 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 Fraser Valley Metropolitan Recreation District’s basic primary government financial statements. The budgetary comparison information is presented for purposes of additional analysis and are not a required part of the basic financial statements.
The budgetary comparison information is the responsibility of management and was derived from and relates 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 budgetary comparison information is fairly stated in all material respects in relation to the basic financial statements as a whole.
June 29, 2017
Greenwood Village, Colorado
Fraser Valley Metropolitan Recreation District Fraser, Colorado Management’s Discussion and Analysis For the Year Ended December 31, 2016
As management of the Fraser Valley Metropolitan Recreation District, Fraser, Colorado (the “District”) we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended December 31, 2016. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our annual audited financial statements.
Financial Highlights
The assets of the District exceeded its liabilities at the close of the most recent fiscal year by $8,819,491 (net position). Of this amount, $7,283,130 was invested in capital assets (net of accumulated depreciation and related debt) of the District and may not be used to meet the District's ongoing obligations to citizens and creditors.
The District’s deposit portfolio decreased by $1,800 during 2016. Overall, the District's total net position decreased by $24,425.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements.
The District’s financial statements are comprised of four components: 1) government-wide financial statements, 2) fund financial statements 3) notes to the financial statements and 4) required supplementary information that provides comparisons of budget to actual on the Non-US GAAP (Accounting Principles Generally Accepted in the United States of America) budgetary basis.
Government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business through the following financial statements.
Statement of Net Position presents information on all of the District’s assets, liabilities and deferred outflows and inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.
Statement of Activities presents a comparison between direct expenses, general revenues and program revenues for each function of the District’s government activities and the different business-like activities. The result represents how the District's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.
Fund financial statements are designed to provide readers with a broad overview of the general, conservation trust, debt service and golf-course funds.
Notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide financial statements.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the District, assets exceeded liabilities by $8,819,491 at the close of the most recent fiscal year.
A portion of the District’s net position, (83%), is invested in capital assets, less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
District Net Position
At the end of the current fiscal year, the District is able to report a positive net position.
Change in the District’s Net Position
Capital Asset and Debt Administration
Capital Assets: The District’s investment in capital assets as of December 31, 2016 amounts to $23,955,960 (net of accumulated depreciation of $9,573,905). The investment in capital assets includes land, land improvements, buildings, equipment, leasehold improvements and vehicles.
District Capital Assets
Cost: $33,529,865) $33,303,935) $225,930 Less: Accumulated Depreciation ($9,573,905) ($8,734,126) ($839,779) Total $23,955,960) $24,569,809) ($613,849)
Long-term Debt: Changes in long-term obligations as of the year ended December 31, 2016 are as follows:
During 2016, the District paid $607,294 interest on the bonds. Accrued interest at December 31, 2016 was $48,738.
Board of Directors Emphasis for the 2016 Budget
In developing the budget for the 2017 fiscal year, the state of the economy was considered during budget review as well as capital expenditure needs for the District. The Assigned fund identifies reserves for future capital asset maintenance and replacement needs. The Unassigned fund includes reserves amounts that are available for any purpose. The final budget reflected reserves as follows:
Requests for Information
This financial report is designed to provide a general overview of the District’s finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:
Ann McConnell, Business Manager
Fraser Valley Metropolitan Recreation District
P.O. Box 3348
Winter Park, CO 80482
ann@fraservalleyrec.org