LEGISLATIVE DEPARTMENT, STATE OF COLORADO FINANCIAL AUDIT REPORT YEARS ENDED JUNE 30, 2003 AND 2002_part5 pot

LEGISLATIVE DEPARTMENT, STATE OF COLORADO COMBINING BALANCE SHEETS - SPECIAL REVENUE FUNDS JUNE 30, 2003 AND 2002 Ballot Ballot Public Publication Public Publication Buildings Revolving Buildings Revolving Trust Fund Fund Trust Fund Fund 2003 2002 ASSETS Cash 13,286$ 734,806$ 5,833$ 214,973$ 748,092$ 220,806$ TOTAL ASSETS 13,286$ 734,806$ 5,833$ 214,973$ 748,092$ 220,806$ LIABILITIES Accounts payable 31$ 225$ 32$ 278$ 256$ 310$ TOTAL LIABILITIES 31 225 32 278 256 310 FUND BALANCES Reserved for specific purpose 13,255 734,581 5,801 214,695 747,836 220,496 TOTAL LIABILITIES AND FUND BALANCES 13,286$ 734,806$ 5,833$ 214,973$ 748,092$ 220,806$ Totals 2003 2002 37 This is trial version www.adultpdf.com LEGISLATIVE DEPARTMENT, STATE OF COLORADO COMBINING SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - SPECIAL REVENUE FUNDS YEARS ENDED JUNE 30, 2003 AND 2002 Ballot Ballot Public Publication Public Publication Buildings Revolving Buildings Revolving Trust Fund Fund Trust Fund Fund 2003 2002 REVENUES Sale of State Capitol history memorabilia 2,678$ -$ 3,110$ -$ 2,678$ 3,110$ Miscellaneous Revenue Interest income - 71,627 - 41,475 71,627 41,475 Miscellaneous revenue 5,000 - 15 - 5,000 15 TOTAL REVENUE 7,678 71,627 3,125 41,475 79,305 44,600 EXPENDITURES Purchased services 100 1,207,328 - 159,121 1,207,428 159,121 Operating expenditures 124 297,413 194 241,851 297,537 242,045 TOTAL EXPENDITURES 224 1,504,741 194 400,972 1,504,965 401,166 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 7,454 (1,433,114) 2,931 (359,497) (1,425,660) (356,566) OTHER FINANCING SOURCES Operating Transfer In - 1,953,000 - 429,443 1,953,000 429,443 TOTAL OTHER FINANCING SOURCES - 1,953,000 - 429,443 1,953,000 429,443 EXCESS OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES 7,454 519,886 2,931 69,946 527,340 72,877 FUND BALANCES, BEGINNING OF YEAR 5,801 214,695 2,870 144,749 220,496 147,619 FUND BALANCES, END OF YEAR 13,255$ 734,581$ 5,801$ 214,695$ 747,836$ 220,496$ Totals 2003 2002 38 This is trial version www.adultpdf.com 39 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AUDITS OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Members of the Legislative Audit Committee: We have audited the financial statements of the Legislative Department, State of Colorado (the “Department”) as of June 30, 2003 and 2002, and for the years then ended, and have issued our report thereon dated August 22, 2003. We conducted our audits in accordance with auditing standards generally accepted in the United States of America 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 the Department’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, and contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audits, we considered the Department’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation 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. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the members of the Legislative Audit Committee of the State of Colorado and management of the Department and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. August 22, 2003 This is trial version www.adultpdf.com 40 August 22, 2003 Members of the Legislative Audit Committee: We have audited the financial statements of the Legislative Department, State of Colorado (the “Department”) as of June 30, 2003 and June 30, 2002, and for the years then ended, and have issued our report thereon dated August 22, 2003. Professional standards require that we provide you with the following information related to our audits. Our Responsibility under Auditing Standards Generally Accepted in the United States of America and Government Auditing Standards Our responsibility, as described by professional standards, is to plan and perform our audits to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or other illegal acts may exist and not be detected by us. As part of our audits, we considered the internal control of the Department. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Department’s compliance with certain provisions of laws, regulations, and contracts. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the Department are described in Note 2 to the financial statements. As described in Note 2 to the financial statements, the Department adopted Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments and Statement No. 37, Basic Financial Statements – and Management’s Discussion and Analysis – for State and local Governments: Omnibus, Statement No. 38, Certain Financial Statement Disclosures, Statement No. 41, Budgetary Comparison Schedules – Perspective Differences and Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements, as of July 1, 2001. This results in a change in the format and content of the basic financial statements. We noted no transactions entered into by the Department during the years that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. This is trial version www.adultpdf.com 41 Management Judgments and Accounting Estimates 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. Management’s use of estimates is disclosed in the notes to the financial statements. Audit Adjustments For purposes of this letter, professional standards define an audit adjustment as a proposed correction to the financial statements that, in our judgment, may not have been detected except through audit procedures. An audit adjustment may or may not indicate matters that could have a significant effect on the Department’s financial reporting process (that is, cause future financial statements to be materially misstated). There were no audit adjustments or waived audit adjustments identified in connection with the June 30, 2003 and 2002 audits. Other Information in Documents Containing Audited Financial Statements The audited financial statements have been presented along with required and non-required supplementary information. The required supplementary information consists of management’s discussion and analysis, which is required under GASB Statements No. 34 and No. 37. Pursuant to professional standards, the auditors’ responsibility for other information in documents containing the Department’s audited financial statements does not extend beyond the financial information identified in the audit report, and the auditor is not required to perform procedures to corroborate such other information. However, in accordance with such standards, we are required to read the information in such documents and consider whether such information, or the manner of its presentation, is materially inconsistent with its presentation in the financial statements. Our responsibility also includes calling to management’s attention any information, which we believe is a material misstatement of fact. No such inconsistencies or misstatements come to our attention. The non-required supplemental information, which includes certain combining and other schedules, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements, and in our opinion, is fairly stated in all material respects, in relation to the basic financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit. This is trial version www.adultpdf.com 42 Consultations with Other 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 Department’s financial statements or a determination of the type of auditors’ 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. Issues Discussed Prior to Retention of Independent Auditors 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 Department's auditors. However, these discussions occurred in the normal course of our professional relationship, and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audits. Independence In our professional judgment, we are independent of the Department and its related entities within the meaning of the AICPA’s Professional Code of Conduct and under Government Auditing Standards. In addition, we are not aware of any relationships between Gelfond Hochstadt Pangburn, P.C. and its related entities and the Legislative Department, State of Colorado, and its related entities that in our professional judgment may reasonably be thought to bear on independence. This information is intended solely for the information and use of the Legislative Audit Committee, Department’s management, and others within the Department and is not intended to be, and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. Sincerely, GELFOND HOCHSTADT PANGBURN, P.C. Scott D. Magnuson, CPA Director This is trial version www.adultpdf.com 43 LEGISLATIVE DEPARTMENT, STATE OF COLORADO DISTRIBUTION PAGE YEARS ENDED JUNE 30, 2003 AND 2002 The electronic version of this report is available on the Web site of the Office of the State Auditor www.state.co.us/auditor A bound report may be obtained by calling the Office of the State Auditor 303-869-2800 Please refer to the Report Control Number below when requesting this report. Report Control Number 1469 This is trial version www.adultpdf.com . We have audited the financial statements of the Legislative Department, State of Colorado (the “Department”) as of June 30, 2003 and June 30, 2002, and for the years then ended, and have issued. audited the financial statements of the Legislative Department, State of Colorado (the “Department”) as of June 30, 2003 and 2002, and for the years then ended, and have issued our report thereon dated. 43 LEGISLATIVE DEPARTMENT, STATE OF COLORADO DISTRIBUTION PAGE YEARS ENDED JUNE 30, 2003 AND 2002 The electronic version of this report is available on the Web site of the Office