Document Blackfoot_doc_b422388f76

CITY OF BLACKFOOT, IDAHO BASIC FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 2023 ---PAGE BREAK--- ---PAGE BREAK--- CITY OF BLACKFOOT AUDITED FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS Page Number FINANCIAL SECTION: Independent Auditor’s Opinion 6 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 9 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 11 Statement of Activities 12 Fund Financial Statements: Balance Sheet – Governmental Funds 14 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 16 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20 Proprietary Funds: Statement of Net Position 21 Statement of Revenues, Expenses, and Changes in Net Position 22 Statement of Cash Flows 23 Fiduciary Funds: Statement of Fiduciary Net Position 24 Statement of Changes in Fiduciary Net Position 25 Notes to Financial Statements 26 3 ---PAGE BREAK--- CITY OF BLACKFOOT AUDITED FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS – (CONTINUED) Page Number Required Supplementary Information: Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions – Base Plan 58 Schedule of employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions – FRF 60 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – General Fund 62 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Street Fund 65 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Ambulance Fund 66 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Parks and Recreation Fund 67 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Blackfoot Urban Renewal District 69 Other Supplemental Information: Combining Balance Sheet - Non-major Governmental Funds 70 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-major Governmental Funds 72 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Airport Fund 74 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Cemetery Fund 75 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Library Fund 76 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Capital Improvements Fund 77 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Health Care Reserve Fund 78 4 ---PAGE BREAK--- CITY OF BLACKFOOT AUDITED FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS – (CONTINUED) Page Number SINGLE AUDIT SECTION: Report on Compliance for Each Major Program and Internal Control over Compliance 80 Schedule of Expenditures of Federal Awards 83 Schedule of Findings and Questioned Costs 84 5 ---PAGE BREAK--- Morgan J Hatt CPA PC Certified Public Accountant 1500 Venture Way Apt. #4201 [EMAIL REDACTED] Phone: (208) 317-6040 Pocatello, Idaho 83201 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and Members of The City Council City of Blackfoot Idaho Report on the Audit of the Financial Statements Opinions I have audited the accompanying financial statements of the governmental activities, the business- type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Blackfoot, Idaho (the City) as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents. In my opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions I conducted my audit 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. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am required to be independent of the City and to meet my other ethical responsibilities, in accordance with the relevant ethical requirements relating to my audit. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 6 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 2 Auditor’s Responsibilities for the Audit of the Financial Statements My objective is to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error; as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, I:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in my judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. I am required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control- related matters that I identified during the audit. Required Supplementary Information The City has omitted the Management’s Discussion and Analysis, that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. My opinions on the basic financial statements are not affected by this missing information. 7 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 3 Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Schedules of Net Pension Liability & Employer’s Contributions – PERSI base plan, and major fund budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board. I 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 my inquiries, the basic financial statements, and other knowledge I obtained during my audit of the basic financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do not provide me with sufficient evidence to express an opinion or provide any assurance. Supplementary Information My audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual non-major fund financial statements and Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such 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. The 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 my opinion, the combining and individual non-major fund financial statements and the Schedule of Expenditures of Federal Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards Pocatello, Idaho Morgan J Hatt CPA PC 8 January 17, 2024 In accordance with Government Auditing Standards, I have also issued my report dated January 17, 2024, on my consideration of the City’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. ---PAGE BREAK--- Morgan J Hatt CPA PC Certified Public Accountant 1500 Venture Way Apt. #4201 [EMAIL REDACTED] Phone: (208) 317-6040 Pocatello, Idaho 83201 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of The City Council City of Blackfoot, Idaho Report on Internal Control over Financial Reporting In planning and performing my audit of the financial statements, I considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing my opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, I do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. My consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during my audit I did not identify any deficiencies in internal control that I consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 9 I have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Blackfoot, Idaho (the City), as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise District’s basic financial statements, and have issued my report thereon dated January 17, 2024. ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements; noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of my audit, and accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Pocatello, Idaho Morgan J Hatt CPA PC 10 January 17, 2024 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF NET POSITION SEPTEMBER 30, 2023 Total Component Unit: Governmental Business-type Primary Blackfoot Urban ASSETS: Activities Activities Government Renewal Agency Current Assets: Cash and investments $8,540,929 $16,526,436 $25,067,365 $3,087,832 Property taxes receivable 179,894 179,894 13,919 Other receivables 761,603 761,603 Utility accounts receivable, net 1,075,626 1,075,626 Golf inventory 45,853 45,853 Non-current Assets: 0 Operating lease right of use asset, net 457,884 276,570 734,454 City's share of PERSI FRF plan asset 4,992,363 4,992,363 Land 1,251,390 942,673 2,194,063 Capital assets, net 15,859,024 35,219,966 51,078,990 Restricted cash 258,256 258,256 189,636 Total Assets: 32,088,940 54,299,527 86,388,467 3,291,387 DEFERRED OUTFLOWS: Deferred PERSI outflow - Base Plan 1,487,952 164,109 1,652,061 Deferred PERSI outflow - FRF 190,408 190,408 1,678,360 164,109 1,842,469 0 LIABILITIES: Current liabilities: Accounts payable 806,537 346,274 1,152,811 27,990 Accrued leave 464,011 76,770 540,781 Accrued interest 371,733 371,733 Customer deposits 85,675 85,675 Operating lease payable due within one year 212,185 150,645 362,830 Finance lease payable due within one year 41,363 41,363 DEQ loan DW 1001 198,964 198,964 DEQ loan WW 1501 172,651 172,651 Due to Bingham County within one year 20,000 2006 Revenue bonds due within one year 0 95,000 2021 Revenue bonds due within one year 0 173,333 Non-current liabilities: Operating Lease payable due beyond one year 265,165 188,931 454,096 DEQ loan DW 1001 1,722,306 1,722,306 DEQ Loan WW 1501 2,983,117 2,983,117 DEQ Loan WW 1703 14,543,272 14,543,272 Due to Bingham County beyond one year 69,606 2006 Revenue bonds due beyond one year 210,016 2021 Revenue bonds due beyond one year 1,120,363 City's share of unfunded PERSI 3,740,563 612,745 4,353,308 Total Liabilities: 5,529,824 21,453,083 26,982,907 1,716,308 DEFERRED OUTFLOWS: Deferred PERSI inflow - Base Plan 95,892 14,745 110,637 0 NET POSITION: Net investment in capital assets 22,041,948 16,479,323 38,521,271 Restricted - for debt service 258,256 258,256 189,636 Unrestricted 6,099,636 16,258,229 22,357,865 1,385,443 Total Net Position: $28,141,584 $32,995,808 $61,137,392 $1,575,079 The accompanying notes are an integral part of these statements. 11 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2023 Program Revenues Charges for Grants and Expenses Services Contributions Primary Government: Governmental Activities: General government $2,059,763 $347,040 Public safety 7,358,025 3,023,347 $264,790 Parks and recreation 1,612,572 996,012 160,541 Library 607,724 281,617 675 Highways and streets 1,959,331 115,253 Cemetery 241,576 51,795 Airport 302,770 46,218 91,786 Interest on long-term debt 25,709 Total Governmental Activities: 14,167,470 4,861,282 517,792 Business-type Activities: Water 2,088,215 2,516,161 Sewer 4,051,236 5,443,034 Sanitation 1,583,904 1,694,644 Interest on long-term debt 236,180 Total Business-type Activities: 7,959,535 9,653,839 0 Total Primary Government: $22,127,005 $14,515,121 $517,792 Component Units: Interest on long-term debt $66,708 Blackfoot Urban Renewal Agency 326,543 $50 $393,251 $50 $0 General Revenues: Property taxes County road and bridge State of Idaho revenue sharing State of Idaho liquor receipts State highway user collections Investment earnings Sale of assets Administration charges Health deductible charges Total General Revenues and Transfers: Change in net position: Net Position October 1, 2022: Net Position September 30, 2023 The accompanying notes are an integral part of these statements. 12 ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Position Component Unit: Primary Government Blackfoot Governmental Business-type Urban Renewal Activities Activities Total Agency ($1,712,723) ($1,712,723) (4,069,888) (4,069,888) (456,019) (456,019) (325,432) (325,432) (1,844,078) (1,844,078) (189,781) (189,781) (164,766) (164,766) (25,709) (25,709) (8,788,396) (8,788,396) $427,946 427,946 1,391,798 1,391,798 110,740 110,740 (236,180) (236,180) 1,694,304 1,694,304 (7,094,092) ($66,708) (326,493) 5,556,306 5,556,306 824,182 44,656 44,656 1,363,586 1,363,586 212,356 212,356 845,739 845,739 954,422 954,422 117,600 19,800 19,800 721,032 (721,032) 0 26,229 (26,229) 0 9,744,126 (747,261) 8,996,865 548,581 955,730 947,043 1,902,773 548,581 27,185,854 32,048,765 59,234,619 1,026,498 $28,141,584 $32,995,808 $61,137,392 $1,575,079 The accompanying notes are an integral part of these statements. 13 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2023 Parks and General Street Ambulance Recreation ASSETS: Fund Fund Fund Fund Cash and investments $4,670,211 $1,590,234 $544,030 $32,309 Receivables: Property taxes 137,298 17,001 7,142 State of Idaho 432,223 238,153 Other 64,809 26,418 Golf clubhouse inventory 45,853 Restricted Cash Total Assets: $5,304,541 $1,871,806 $544,030 $85,304 LIABILITIES: Accounts payable $334,212 $167,495 $56,560 $125,429 Total Liabilities: 334,212 167,495 56,560 125,429 DEFERRED INFLOW OF RECOURCES: Unavailable revenue - Property taxes 117,154 15,346 6,521 FUND BALANCE: Restricted for debt service Assigned - Capital improvements Assigned - Golf fee increase reserve Committed 1,688,965 487,470 Unassigned 4,853,175 (46,646) Total Fund Balance: 4,853,175 1,688,965 487,470 (46,646) Total Liabilities, Deferred Resources, & Fund Balance: $5,304,541 $1,871,806 $544,030 $85,304 The accompanying notes are an integral part of these statements. 14 ---PAGE BREAK--- Other Total Blackfoot Governmental Primary Urban Renewal Funds Governmental Agency $1,704,145 $8,540,929 $3,087,832 18,453 179,894 13,919 670,376 91,227 45,853 0 189,636 $1,722,598 $9,528,279 $3,291,387 $122,841 $806,537 $27,990 122,841 806,537 27,990 16,854 155,875 13,219 189,636 0 0 1,582,903 3,759,338 4,806,529 3,060,542 1,582,903 8,565,867 3,250,178 $1,722,598 $9,528,279 $3,291,387 The accompanying notes are an integral part of these statements. 15 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2023 Total Blackfoot Primary Urban Renewal Government Agency Total Fund Balance: $8,565,867 $3,250,178 Total net assets reported on the Statement of Net Position is different from the fund balance reported on the Balance Sheet because: Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in the governmental funds. Cost of operating lease right of use asset: 917,673 Operating lease right of use asset amortization to date: (459,789) Cost of capital assets: 47,833,546 Depreciation expense to date: (30,723,132) City's share of PERSI FRF plan asset: 4,992,363 Some of the City's property taxes will be collected after year-end and are not available to pay current period expenditures. They are reported as deferred revenue in the governmental funds. 155,875 13,219 Deferred amounts are not current financial resources/uses. Therefore, they are not reported in the governmental funds. Deferred PERSI outflows: 1,678,360 Deferred PERSI inflows: (95,892) Long-term liabilities are not due and payable in the current period. Therefore, they are not reported as liabilities in the governmental funds. Accrued leave: (464,011) Operating lease payments payable: (477,350) Finance leases payable: (41,363) Amount due to Bingham County: (89,606) 2006 Revenue bonds payable: (305,016) 2021 Revenue bonds payable: (1,293,696) City's share of unfunded PERSI : (3,740,563) Net Position: $28,141,584 $1,575,079 The accompanying notes are an integral part of these statements. 16 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 17 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2023 Parks and General Street Ambulance Recreation REVENUE: Fund Fund Fund Fund Property taxes $4,151,984 $541,152 $231,170 Franchise taxes 138,363 105,498 Licenses and fees 150,862 $901,075 981,721 Fines and forfeitures 103,853 State of Idaho 1,575,942 845,739 County shared 44,656 784,747 21,500 Blackfoot - Snake River Fire District 918,151 Blackfoot Rural Library District School District Resource Officer 300,000 Grants and contributions 145,393 59,673 138,041 Interest 945,932 3,408 1,415 Administrative charges 905,880 Miscellaneous 126,100 9,755 7,544 14,841 Total Revenue: 9,462,460 1,550,208 1,753,039 1,388,688 EXPENDITURES: Current Operating: General government 1,898,292 Public safety 6,015,058 1,496,114 Parks and recreation 1,535,334 Library Highways and streets 1,706,348 Airport Capital Outlay Debt service - principal Debt service - interest Total Expenditures: 7,913,350 1,706,348 1,496,114 1,535,334 EXCESS REVENUE (EXPENDITURES): 1,549,110 (156,140) 256,925 (146,646) OTHER FINANCING SOURCES (USES): 2021 Revenue bonds Operating transfers (to) from other funds (100,000) 100,000 NET CHANGE IN FUND BALANCES: 1,449,110 (156,140) 256,925 (46,646) FUND BALANCE - BEGINNING: 3,404,065 1,845,105 230,545 0 FUND BALANCE - ENDING: $4,853,175 $1,688,965 $487,470 ($46,646) The accompanying notes are an integral part of these statements. 18 ---PAGE BREAK--- Other Total Blackfoot Governmental Primary Urban Renewal Funds Government Agency $598,379 $5,522,685 $819,828 243,861 177,448 2,211,106 103,853 2,421,681 850,903 918,151 270,700 270,700 300,000 92,461 435,568 3,667 954,422 117,600 905,880 504 158,744 50 1,143,159 15,297,554 937,478 332,764 2,231,056 18,431 7,511,172 1,535,334 587,571 587,571 1,706,348 172,445 172,445 42,621 42,621 308,112 273,498 66,708 1,135,401 13,786,547 666,749 7,758 1,511,007 270,729 0 0 0 7,758 1,511,007 270,729 1,575,145 7,054,860 2,979,449 $1,582,903 $8,565,867 $3,250,178 The accompanying notes are an integral part of these statements. 19 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2023 Total Blackfoot Primary Urban Renewal Government Agency Net Change in Fund Balance -Total Governmental Funds: $1,511,007 $270,729 Because some property taxes will not be collected for several months after the City's year-end, they are not considered current resources in the governmental funds. They are, however, considered as revenue in the Statement of Activities. This amount is the current year change in deferred taxes: 33,621 4,354 Governmental funds report capital outlays as current year expenditures. In the Statement of Activities, the cost of these assets is allocated over their estimated useful lives as depreciation expense. This is the amount of current capital outlay for new equipment: 642,252 This is the amount of current year depreciation: (1,214,475) Long-term liabilities are not recorded in governmental funds. This is the amount of finance lease payments: 40,126 This is the amount of new operating leases net of payments: (14,091) This is the amount of the payent to Bingham County: 20,000 This is the amount of the 2006 Revenue Bond principal payment: 84,984 This is the amount of the 2021 Revenue Bond principal payment: 168,514 Liability for personal leave days are not recorded in governmental funds. This is the (increase) decrease in leave during the year: (24,572) Revenues and expenses that do not require the use of current financial resources are not reported in the governmental funds. This is the current net PERSI revenue/(expense): (18,138) Change in Net Position: $955,730 $548,581 The accompanying notes are an integral part of these statements. 20 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2023 Totals Water Sewer Sanitation (Memorandum ASSETS: Fund Fund Fund Only) Current Assets: Cash and investments $6,500,702 $8,401,024 $1,624,710 $16,526,436 Utility accounts receivable 258,820 650,675 166,131 1,075,626 Grants receivable 0 Non-current Assets: Operating lease right to use asset, net 221,962 54,608 276,570 Land 234,569 413,536 648,105 Property and equipment - net of depreciation 5,586,256 29,633,710 294,568 35,514,534 Restricted Cash 258,256 258,256 Total Assets: 12,802,309 39,357,201 2,140,017 54,299,527 DEFERRED OUTFLOWS: Deferred PERSI outflow of resources 42,338 81,309 40,462 164,109 LIABILITIES: Current liabilities: Accrued leave 34,067 37,342 5,361 76,770 Accounts payable 96,145 233,413 16,716 346,274 Accrued interest 2,303 369,430 371,733 Customer deposits 85,675 85,675 Operating lease payable due within one year 105,905 44,740 150,645 DEQ loan DW 1001 198,964 198,964 DEQ loan WW 1501 172,651 172,651 Non-current liabilities: Operating Lease payable due beyond one year 166,993 21,938 188,931 DEQ loan DW 1001 1,722,306 1,722,306 DEQ loan WW 1501 2,983,117 2,983,117 DEQ loan WW 1703 14,543,272 14,543,272 City's share of unfunded PERSI 171,955 286,254 154,536 612,745 Total Liabilities: 2,584,313 18,625,479 243,291 21,453,083 DEFERRED INFLOWS: Deferred PERSI inflow of resources 4,093 6,945 3,707 14,745 NET POSITION: Net investment in capital assets 3,848,619 12,348,206 282,498 16,479,323 Restricted - for debt service 258,256 Assigned - Capital improvements 2,097,965 1,177,357 3,275,322 Unrestricted 4,309,657 7,280,523 1,650,983 12,982,907 Total Net Position: $10,256,241 $20,806,086 $1,933,481 $32,995,808 The accompanying notes are an integral part of these statements. 21 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2023 Totals Water Sewer Sanitation (Memorandum OPERATING REVENUE: Fund Fund Fund Only) Service fees $2,444,658 $5,428,803 $1,693,845 $9,567,306 Other 71,503 14,231 799 86,533 Total Revenue: 2,516,161 5,443,034 1,694,644 9,653,839 OPERATING EXPENSES: Salaries 371,098 527,991 307,323 1,206,412 Benefits 327,475 555,488 322,062 1,205,025 Clothing 4,393 9,901 2,903 17,197 Travel and training 3,948 12,169 49 16,166 Office supplies 38,113 49,750 22,585 110,448 Maintenance 53,380 103,237 63,296 219,913 Utilities and telephone 216,423 223,182 11,197 450,802 Fuel 14,381 31,213 62,128 107,722 Professional services 91,327 195,228 489 287,044 Department supplies and other 135,754 168,471 12,699 316,924 Depreciation 266,508 1,753,585 106,714 2,126,807 Operating lease amortization 81,404 27,304 108,708 Administrative services 161,736 427,572 131,724 721,032 Lab and DEQ fees 61,660 64,873 126,533 Lift stations 87,330 87,330 County services 615,972 615,972 Constructional materials 429,091 265,676 36,060 730,827 Total Expenses: 2,256,691 4,475,666 1,722,505 8,454,862 OPERATING INCOME (LOSS): 259,470 967,368 (27,861) 1,198,977 NON-OPERATING REVENUES (EXPENSES): Federal and State grants (15,754) (15,754) Debt service-interest (36,405) (199,775) (236,180) INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 223,065 751,839 (27,861) 947,043 Transfers (to) from other funds 0 0 0 0 CHANGE IN NET POSITION: 223,065 751,839 (27,861) 947,043 NET POSITION - BEGINNING: 10,033,176 20,054,247 1,961,342 32,048,765 NET POSITION - ENDING: $10,256,241 $20,806,086 $1,933,481 $32,995,808 The accompanying notes are an integral part of these statements. 22 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2023 Totals Water Sewer Sanitation (Memorandum Fund Fund Fund Only) CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from City patrons $2,469,050 $5,129,029 $1,673,311 $9,271,390 Payments to suppliers (1,305,201) (1,628,185) (1,145,319) (4,078,705) Payments to employees (366,096) (528,047) (307,857) (1,202,000) City administrative charges (161,736) (427,572) (131,724) (721,032) Net Cash Provided by Operating Activities: 636,017 2,545,225 88,411 3,269,653 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of fixed assets (515,018) (441,161) (956,179) Operating lease asset net of liability (30,468) (15,234) Increase (decrease) in accrued interest Grants 0 DEQ loan DW 1001 payments (231,720) (231,720) DEQ loan WW 1501 payments (258,318) (258,318) DEQ loan WW 1703 advance 2,210 2,210 Restricted cash 0 Net Cash Applied to Financing Activities: (777,206) (697,269) (15,234) (1,444,007) CASH FLOWS FROM INVESTING ACTIVITIES: Interest earned on investments 0 0 0 0 NET INCREASE (DECREASE) IN CASH (141,189) 1,847,956 73,177 1,779,944 CASH AT BEGINNING OF YEAR: 6,641,891 6,553,068 1,551,533 14,746,492 CASH AT END OF YEAR: $6,500,702 $8,401,024 $1,624,710 $16,526,436 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET INCOME: Net income (loss) $223,065 $751,839 ($27,861) $947,043 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 266,508 1,753,585 106,714 2,126,807 Operating lease amortization 81,404 27,304 108,708 Net PERSI plan expense (revenue) 43,090 61,950 36,546 141,586 Rebates and insurance claims 0 Investment income 0 Debt service interest 36,405 199,837 236,242 Grants 0 Transfers 0 (Increase) decrease in accounts receivable (39,734) (311,333) (19,417) (370,484) Increase (decrease) in accounts payable 25,279 89,347 (34,875) 79,751 Net Cash Provided by Operating Activities: $636,017 $2,545,225 $88,411 $3,269,653 The accompanying notes are an integral part of these statements. 23 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF FIDUCIARY NET POSITION AT JUNE 30, 2023 Private Purpose Trust Funds Agency Fund ASSETS: Scholarship Accounts Total Cash and equivalents $29,260 $13,670 $42,930 LIABILITIES Accounts payable - vendors $1,171 $1,171 Due to the Blackfoot Youth Committee 6,702 6,702 Due to other 3,087 3,087 Due to Music in the Park 300 300 Due to the Round Up Program 128 128 Due from Ladie's Golf Association 617 617 Due from Mens' Golf Association 1,790 1,790 Due to Animal Shelter Vaccinations 50 50 Due from Animal Shelter Utilities (311) (311) Due to Trunk or Treat 136 136 Total Liabilities: $0 13,670 13,670 NET POSITION: Restricted for scholarships 29,992 29,992 Total Liabilities and Net Position: $29,992 $13,670 $43,662 The accompanying notes are an integral part of these statements. 24 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED SEPTEMBER 30, 2023 Private Purpose Trust Funds Scholarship ADDITIONS: Contributions $28,428 Total Additions: 28,428 DEDUCTIONS: Miscellenous 2,660 Scholarships 22,500 Total Deductions: 25,160 CHANGE IN NET POSITION 3,268 NET POSITION - BEGINNING 25,992 NET POSITION - ENDING $29,260 The Accompanying notes are an integral part of these statements. 25 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Blackfoot, Idaho (the “City”) was incorporated on January 16, 1901, under the provision of the State of Idaho. The City operates under a Council-Mayor form of government. The financial statements of the City of Blackfoot have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for established governmental accounting and financial reporting principles. The more significant of the City of Blackfoot’s accounting policies are described below. A. FINANCIAL REPORTING ENTITY For financial reporting purposes, management has considered potential component units. The decision to include a potential component unit in the reporting entity is made by applying the criteria set forth in generally accepted accounting principles. The basic criterion for including a potential component unit within the reporting entity is the governing body's responsibility for financial accountability. Financial accountability is defined as the level of accountability that exists if a primary government appoints a voting majority of an organization’s governing board and is either able to impose its will on that organization or there is potential for the organization to provide specific financial benefits to or impose specific financial burdens on the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. Discretely Presented Component Unit The Blackfoot Urban Renewal District was organized to make improvements to infrastructure in specific areas of the City. It derives its revenues from the incremental tax increases that all taxing districts forfeit from increase in value of the land and improvements in new construction areas. 26 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 B. BASIS OF ACCOUNTING/MEASUREMENT FOCUS The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government-wide Financial Statements The Statement of Net Position and the Statement of Changes in Net Position display information about the City. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities are included in the accompanying Statement of Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized when the liability is incurred. Property taxes are recognized as revenue in the year for which they are levied. Program service revenues include charges for services, as well as operating contracts with other units of government, such as the Snake River Fire District, the Rural Library District, and the County Ambulance. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to inter-fund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. Proprietary funds distinguish operating revenues and expenses for non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with ongoing operations. The principal operating revenues of the Water, Sewer, and Sanitation Funds are charges to City residents. 27 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 B. BASIS OF ACCOUNTING/MEASUREMENT FOCUS – (CONTINUED) Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, the City’s policy is to use restricted resources first and then unrestricted resources, as they are needed. Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund equity as presented in these statements to the net position presented in the Government-wide Financial Statements. Governmental funds are accounted for on a spending or “current financial resources” measurement focus and on the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances present increases and decreases in net current assets. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available as net current assets. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Revenue sources susceptible to accrual include property taxes and inter-governmental revenues. Expenditures are recognized when the related fund liability is incurred. Exceptions to this general rule include accumulated unpaid vacation, sick days, and other employee amounts which are not accrued. Proprietary Fund Financial Statements Proprietary Funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities can be provided either to outside parties or other departments or agencies within the City. 28 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 B. BASIS OF ACCOUNTING/MEASUREMENT FOCUS – (CONTINUED) Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities are included on the Statement of Net Position. Revenues are recognized when they are earned and expenses are recognized when the liability is incurred. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Position. The City’s fiduciary funds represent agency funds, which are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial activities of the City except those required to be accounted for in another fund. The Street Fund is used to account for the operation of the Street Department. Funding is provided by local property taxes and the City’s share of State highway taxes. The Ambulance Fund is used to account for the activities of the City’s paramedics. Funding is provided through user charges and cost sharing with Bingham County. The Parks and Recreation Fund include the City’s golf course and City parks. Funding is provided by local property taxes and user charges. The City reports the following major proprietary funds: The Water Fund accounts for the City’s water production and distribution. The Sewer Fund accounts for the City’s sewer system operation. The Sanitation Fund accounts for the City’s refuse collection and disposal. 29 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 C. BUDGETING Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, special revenue, and debt service funds. All annual appropriations lapse at fiscal year-end. Project-length financial plans are adopted for all capital project funds. In July and August of each year, the various department heads submit their budget requests to the Mayor and Council. Budget meetings are then held to determine what funds will be available for expenditure in the new fiscal year. The budget requests are reduced to match the available revenue and a proposed budget is approved by the Mayor and Council. The proposed budget is published in the local paper and taxpayers are invited to attend a public hearing to express their views concerning the proposed budget. After this public meeting, the budget is approved and is legally enacted through the passage of an ordinance. D. ENCUMBRANCES Encumbrances are not liabilities and they are not recorded as expenditures until receipt of material or services. For budgetary purposes, appropriations lapse at year-end and are re- budgeted the following year. The City does not reserve fund balance for outstanding encumbrances at year-end. E. CASH AND INVESTMENTS Cash and Cash Equivalents are generally considered short-term, highly liquid investments with a maturity of three months or less from the purchase date. Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. 30 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 E. CASH AND INVESTMENTS – (CONTINUED) The City’s policy is to comply with Idaho State Statutes. Under Idaho Code Section 67- 1210, the City is authorized to invest surplus or idle monies in investments subject to the following standards, guidelines, and restrictions: a. City monies shall not be made in any depository of a financial institution in an amount which exceeds 10% of said entity’s capital and surplus. Any investment to be made above Federal Deposit Insurance requires the depository to have a current “Moody’s Bank Credit Report Service” rating of or better. b. No demand deposits or investment in time deposits or certificates of deposit shall be made in financial institutions insured in whole or in part by the Federal Savings and Loan Insurance Corporation or in any State or Federal credit unions’ insurance programs in an amount in excess of the insurance available. Investments allowable under “Idaho Code Section 67-1210 are: a. Bonds, Treasury bills, interest bearing notes, or other obligations of the United States or those for which the faith and credit of the United States are pledged for the payment of principal and interest. b. General obligation or revenue bonds of this State or those for which the faith and credit of this State are pledged for the payment of principal and interest. c. General obligation or revenue bonds of any county, city, metropolitan water district, municipal utility district, school district, or other taxing district of this State. d. Notes, bonds, debentures, or other similar obligations issued by the Farm Credit System or institutions forming a part thereof under the Farm Credit Act of 1971. e. Bonds, notes, or other similar obligations issued by public corporations of the State of Idaho including, but not limited to, the Idaho State Building Authority, the Idaho Housing and Finance Association, and the Idaho Water Resource Board. f. Repurchase agreements covered by any legal investment for the State of Idaho. g. Tax anticipation notes and registered warrants of the State of Idaho. h. Tax anticipation bonds or notes and income and revenue anticipation bonds or notes of taxing districts of the State of Idaho. i. Time deposit accounts and savings accounts in state depositories including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transactions accounts. 31 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 E. CASH AND INVESTMENTS – (CONTINUED) j. Time deposit accounts and savings accounts of Federal savings and loan associations located within the geographical boundaries of the State in amounts not to exceed the insurance provided by the Federal Deposit Insurance Corporation including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. k. Revenue bonds of institutions of higher education of the State of Idaho. l. Share, savings, and deposit accounts of State and Federal credit unions located within the geographical boundaries of the State in amounts not to exceed the insurance provided by the National Credit Union Share Insurance Fund and/or any other authorized deposit guaranty corporation, including but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. m. Money market funds whose portfolios consist of any allowed investment as specified in this section. The securities held in money market portfolios must be dollar-denominated, meaning that all principal and interest payments on such a security are payable to security holders in United States dollars. The City pools idle cash from all funds for purpose of increasing income through investment activities. As of September 30, 2023, the City’s investments consisted of $2,7,54,712 (17%) in the State of Idaho Local Government Diversified Bond fund (DBF), $9,685,010(62%) in the State of Idaho Local Government Investment Pool (LGIP), and $3,261,515 (21%) in Moreton Asset Management. Fair Value of Investments The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1- Valuations based on quoted prices in active markets for identical assets or liabilities. Since valuations are based upon quoted prices that are readily and regularly available, the valuation of these securities does not entail any significant degree of judgement. Securities classified as Level 1 include U.S Government securities and other U.S. Agency and sovereign government obligations. 32 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 E. CASH AND INVESTMENTS – (CONTINUED) Level 2- Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Securities classified as Level 2 includes corporate and municipal bonds, and “brokered” or securitized certificates of deposit. Level 3- Valuations based on inputs that are unobservable and significant to the overall fair value measurement. At September 30, 2023, 100% of DBF and LGIP investments are level 2 valuations. Moreton Asset Management had the following recurring fair value measurements: Security Type Level 1 Level 2 Level 3 Other Total Agency $447,185 $447,185 CD $2,241,040 2,241,040 Corporate 395,470 395,470 Currency 1,444 1,444 MM Fund 150,408 150,408 US Govt 0 $599,037 $2,636,510 $0 $0 $3,235,547 Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. As of September 30, 2023, Moreton Asset Management investments had the following maturities: Security Market Value + Accrued Type 0 to 1 Years 1 to 3 Years. 3 to 5 Years Other Total Agency $452,820 $452,820 CD 325,716 $1,318,419 $614,010 2,258,145 Corporate 297,740 100,958 398,698 MM Fund 150,408 150,408 Cash 1,444 1,444 $1,228,128 $1,419,377 $614,010 $0 $3,261,515 33 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 E. CASH AND INVESTMENTS – (CONTINUED) Credit Risk Credit risk is the risk that an insurer or other counterparty to an investment will not fulfill its obligations. The City’s policy for reducing its exposure to credit risk is to comply with the previously noted State Statute guidelines as of September 30, 2023, Moreton Asset Management investments had the following credit ratings: Rating Mkt value + Accrued Mkt Value + Accrued AAA $604,672 $607,057 AA 138,795 140,310 AA- 476,124 497,416 A+ 573,790 588,663 A 195,288 208,512 A- 346,780 353,241 BBB+ 180,191 200,316 BBB- 653,385 682,087 NA 92,491 99,930 $3,261,516 $3,377,532 Concentration of Credit Risk Concentration of credit risk occurs when investments are concentrated in one issuer. The City has no investment policy limiting the amount it may invest in any one issuer. However, note that the DBF, the LGIP, and Moreton Asset Management are all diversified investment funds which are investing the City’s money numerous individual securities. This greatly reduces the City’s concentration of credit risk. Inventory consists of golf clubhouse merchandise and apparel purchased for resale. Inventory is valued at cost on a first in/first out basis. F. INVENTORY 34 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 Capital assets, which include property; plant; equipment; and infrastructure (roadways), are defined by the City as any asset with an individual cost of more than $15,000 and an estimated useful life of at least one year. The City’s assets are capitalized at historical cost or estimated historical cost. Gifts or contributions of assets are recorded at fair market value when received. Depreciation is recorded on the straight-line basis over the estimated useful lives of the assets as follows: Buildings: 20-40 years, Equipment: 5-10 years, and Infrastructure: 40 years. In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34, which requires the inclusion of infrastructure in local government’s basic financial statements. Infrastructure includes the streets, the water purification and distribution system, the sewer collection and treatment system, and all land and buildings used by the City. The City has elected to use the basic approach as defined by Statement No. 34 for asset reporting. Historical cost records do not exist for all of the City’s assets dating back to 1901. For those assets where actual costs records could not be located, the City estimated costs using standard unit costs appropriate for acquisition date. Accumulated depreciation was computed based on the life of the assets. Book value is computed by deducting the accumulated depreciation from the original cost. It is the City’s policy to permit employees to accumulate unused vacation and sick leave, some of which will be paid to employees upon their separation from service. This amount is included as a liability in the government-wide statements and on the proprietary fund statements. In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and so it will not be recognized as an outflow of resources (expenditure) until then. The City does have items that qualify for reporting in this category. They are the deferred outflows of resources related to the PERSI pension base plan. G. CAPITAL ASSETS I. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES H. ACCUMULATED COMPENSATED ABSENCES 35 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The City has one type of these items, which arises under the government-wide accrual basis of accounting that qualifies for reporting in this category and one item, which arises only under a modified accrual basis of accounting. Accordingly, the item, “unavailable revenue,” is reported only in the Governmental Funds Balance Sheet. The governmental funds report unavailable revenues from one source: property taxes. This amount is deferred and recognized as an inflow of resources in the period that the amounts become available. The other item (reported in the government-wide statements) is an amount related to the pension base plan. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Governmental fund equity is classified as fund balance. Fund balance is further classified as non-spendable, restricted, committed, assigned, or unassigned. Restrictions of the fund balance indicate portions that are legally or contractually segregated for a specific future use. Non-spendable fund balances are required to be maintained intact. Committed portions represent amounts that can only be used for specific purposes pursuant to formal action of the City Council. Assigned portions represent amounts set aside for specific purposes. Remaining fund balances are reported as unassigned. When both restricted and unrestricted fund balances are available for use, it is the City’s policy to use restricted fund balance first, then unrestricted fund balance. Furthermore, committed fund balances are reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those restricted fund balance classifications can be used. J. FUND EQUITY K. FUND BALANCE FLOW ASSUMPTIONS Sometimes, the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements; a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 36 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 2. PROPERTY TAX The City’s property taxes, levied by the second Monday of September on assessed valuation as of June 30, are payable in two equal installments for real property due December 20, and June 20. Personal taxes are payable on December 20. Assessed valuations are established by the County Assessor’s office except for utility property which is established by the State and is currently at 100% of market value. Delinquent payments bear simple interest of 1% per month plus a 2% penalty. Due to the small amount of taxes not collected no adjustment is made for delinquent taxes. Uncollected property taxes are recorded as receivable at year-end, with deferred revenue representing that portion which will not be collected within 60 days after year-end. L. NET POSITION FLOW ASSUMPTIONS Net position represents the difference between assets and liabilities. Net investment in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors, laws or regulations, or other governments. Sometimes, the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the Government-wide and Proprietary Fund Financial Statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. Pensions – For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from the Base Plan’s fiduciary net position have been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 37 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 3. RECEIVABLES The following is a detail of accounts receivable: General Street Fund Fund Total State of Idaho: Revenue sharing $388,252 $388,252 State liquor tax 43,971 43,971 Highway user tax $238,153 238,153 432,223 238,153 670,376 Other receivables: Franchise fees 26,239 26,239 Accrued interest on investments 15,011 15,011 15,011 26,239 41,250 Total Receivables $447,234 $264,392 $711,626 4. CAPITAL ASSETS In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government-wide Statement of Net Position. The City has maintained a record of fixed assets since 1993. During fiscal year 2000, the infrastructure assets were added to the equipment inventory records. Original estimated costs were developed in one of three ways: 1) Actual historical cost records; 2) Estimated historical costs where actual cost records were not available; and 3) for streets, curbs, and gutters; the City used present construction cost indexed by inflation factors provided by the Idaho Department of Transportation. Accumulated depreciation was computed on a straight- line basis using appropriate life expectancies. 38 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 4. CAPITAL ASSETS – (CONTINUED) Capital assets of the City for the year ended September 30, 2023 are as follows: Assets Accumulated Depreciation Balance Balance Balance Balance Governmental Activities: 10/1/2022 Change 9/30/2023 10/1/2022 Change 9/30/2023 Land $1,251,390 $1,251,390 Buildings 10,963,514 $562,828 11,526,342 $7,084,423 $332,831 $7,417,254 Infrastructure 27,739,538 27,739,538 16,639,468 603,229 17,242,697 Vehicles & Rolling Stock 4,667,504 (44,231) 4,623,273 4,058,138 74,852 4,132,990 Furniture & Equipment 2,640,079 52,924 2,693,003 1,797,359 132,832 1,930,191 $47,262,025 $862,506 $47,833,546 $29,579,388 $1,143,744 $30,723,132 Business - type Activities Land $648,105 $648,105 Distributions System 56,328,476 $133,937 56,462,413 $21,020,856 $1,813,153 $22,834,009 Vehicles & Rolling Stock 3,050,435 217,399 3,267,834 2,328,078 71,466 2,399,544 Furniture & Equipment 1,784,658 451,199 2,235,857 1,109,473 108,544 1,218,017 $61,811,674 $802,535 $62,614,209 $24,458,407 $1,993,163 $26,451,570 For the fiscal year ended September 30, 2023, depreciation expense on capital assets was charged to the governmental functions in the City-wide statements as follows: General Government $36,772 Public Safety 152,095 Street 661,010 Cemetery 3,868 Airport 190,381 Library 13,765 Parks 156,584 $1,214,475 39 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 5. ACCOUNTS PAYABLE Accounts payable consists of the following: Parks and Other General Street Ambulance Recreation Non-major Fund Fund Fund Fund Funds Total Vendors payable $182,179 $162,128 $36,377 $95,924 $116,662 $593,270 Wages Payable 71,649 5,367 20,183 14,540 6,179 117,918 Employee tax and benefits 59,710 59,710 Customer deposits 20,674 20,674 Golf Tournament Credits 14,965 14,965 $334,212 $167,495 $56,560 $125,429 $122,841 $806,537 Water Sewer Sanitation Fund Fund Fund Total Vendors payable $88,489 $222,660 $11,299 $322,448 Wages Payable 7,656 10,753 5,417 23,826 $96,145 $233,413 $16,716 $346,274 6. FINANCE LEASE During 2019, the City entered into a lease agreement with Zion’s Bank to finance a Fire Truck. It is being repaid over 6 years with interest at 3.38%. As of September 30, 2023, the annual requirements to amortize the debt are as follows: Payment 3.38% Date Amount Interest Principal Balance $41,363 Mar 2024 $21,272 $699 $20,573 20,790 Sep 2024 21,272 482 20,790 0 $42,544 $1,181 $41,363 40 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 7. OPERATING LEASES The City leases it police vehicles instead of purchasing them. At the end of the vehicle’s 5-year lease term, the vehicle will be returned to the lessor. As of September 30, 2023, the annual lease obligation on various vehicles and equipment are as follows: Balance Incurred Satisfied Balance Annual Lease Debt obligations 9/30/22 or issued or matured 9/30/23 2024 2025 2026 2027 2020 police car operating leases: #1 $16,037 ($8,227) $7,810 $7,810 #2 15,370 (8,007) 7,363 7,363 #3 15,369 (8,007) 7,362 7,362 #4 15,070 (8,083) 6,987 6,987 #5 15,228 (7,960) 7,268 7,268 #6 15,228 (7,960) 7,268 7,268 2021 police car operating leases: #7 25,519 (8,461) 17,058 8,563 $8,495 #8 25,519 (8,461) 17,058 8,563 8,495 #9 25,519 (8,461) 17,058 8,563 8,495 #10 25,519 (8,461) 17,058 8,563 8,495 #11 25,519 (8,461) 17,058 8,563 8,495 2022 police car operating leases: #12 33,992 (7,444) 26,548 8,109 8,832 $9,607 #13 34,410 (7,596) 26,814 8,232 8,922 9,660 #14 34,337 (7,568) 26,769 8,209 8,906 9,654 #15 32,785 (7,487) 25,298 7,942 8,425 8,931 #16 31,552 (6,923) 24,629 7,532 8,194 8,903 2023 police car operating leases: #17 $11,063 (5,392) 5,671 5,671 #18 30,069 (5,442) 24,627 5,714 6,000 6,300 6,613 #19 45,378 (8,212) 37,166 8,623 9,055 9,507 9,981 #20 49,507 (8,960) 40,547 9,407 9,878 10,372 10,890 #21 52,813 (9,558) 43,255 10,036 10,537 11,064 11,618 2023 Water vehicle & equipment operating leases: #1 40,956 (7,617) 33,339 10,969 22,370 #2 40,956 (7,617) 33,339 10,969 22,370 #3 40,956 (7,617) 33,339 10,969 22,370 #4 40,956 (7,617) 33,339 10,969 22,370 #5 139,542 139,542 16,425 17,409 18,452 19,557 2023 Street vehicle operating leases: #1 40,956 (7,617) 33,339 10,969 22,370 #2 40,956 (7,617) 33,339 10,969 22,370 2023 Sanitation vehicle operating leases: #1 40,956 (7,617) 33,339 10,969 22,370 #2 40,956 (7,617) 33,339 10,969 22,370 $386,973 $656,020 ($226,067) $816,926 $270,525 $317,593 $102,450 $58,659 41 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 8. DEQ REVOLVING LOAN #WW 1501 During 2018, the City completed a waste water facilities upgrade. The project was funded by a loan from the US Department of Environmental Quality Idaho Revolving Loan Fund. As of September 30, 2023, the annual requirements to amortize the debt including interest are as follows: Sewer Revenue Bond Series 2018 2.75% Payment Interest Principal Balance $3,155,768 3/17/24 $129,128 $43,392 $85,736 3,070,032 9/17/24 129,128 42,213 86,915 2,983,117 3/17/25 129,128 41,018 88,110 2,895,007 9/17/25 129,128 39,806 89,322 2,805,685 3/17/26 129,128 38,578 90,550 2,715,135 9/17/26 129,128 37,333 91,795 2,623,340 3/17/27 129,128 36,071 93,057 2,530,283 9/17/27 129,128 34,791 94,337 2,435,947 3/17/28 129,128 33,494 95,634 2,340,313 9/17/28 129,128 32,179 96,949 2,243,364 3/17/29 129,128 30,846 98,282 2,145,083 9/17/29 129,128 29,495 99,633 2,045,450 3/17/30 129,128 28,125 101,003 1,944,446 9/17/30 129,128 26,736 102,392 1,842,055 3/17/31 129,128 25,328 103,800 1,738,255 9/17/31 129,128 23,901 105,227 1,633,028 3/17/32 129,128 22,454 106,674 1,526,354 9/17/32 129,128 20,987 108,141 1,418,213 3/17/33 129,128 19,500 109,628 1,308,586 9/17/33 129,128 17,993 111,135 1,197,451 3/17/34 129,128 16,465 112,663 1,084,788 9/17/34 129,128 14,916 114,212 970,576 3/17/35 129,128 13,345 115,783 854,793 9/17/35 129,128 11,753 117,375 737,419 3/17/36 129,128 10,140 118,988 618,430 9/17/36 129,128 8,503 120,625 497,806 3/17/37 129,128 6,845 122,283 375,522 9/17/37 129,128 5,163 123,965 251,558 3/17/38 129,128 3,459 125,669 125,889 9/17/38 129,128 3,239 125,889 42 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 9. DEQ REVOLVING LOAN #DW 1001 During 2012, the City completed a water facilities upgrade. The project was funded by a loan from the US Department of Environmental Quality Idaho Revolving Loan Fund. As of September 30, 2023, the annual requirements to amortize the debt including interest are as follows: Water Bond Series 2015 Payment 1.75% Date Amount Interest Principal Balance $1,921,270 3/11/24 $115,860 $16,811 $99,049 1,822,221 9/11/24 115,860 15,945 99,915 1,722,306 3/11/25 115,860 15,070 100,790 1,621,516 9/11/25 115,860 14,189 101,671 1,519,845 3/11/26 115,860 13,299 102,561 1,417,284 9/11/26 115,860 12,402 103,458 1,313,826 3/11/27 115,860 11,496 104,364 1,209,462 9/11/27 115,860 10,583 105,277 1,104,185 3/11/28 115,860 9,662 106,198 997,987 9/11/28 115,860 8,733 107,127 890,860 3/11/29 115,860 7,795 108,065 782,795 9/11/29 115,860 6,850 109,010 673,785 3/11/30 115,860 5,896 109,964 563,821 9/11/30 115,860 4,934 110,926 452,895 3/11/31 115,860 3,963 111,897 340,998 9/11/31 115,860 2,984 112,876 228,122 3/11/32 115,860 1,996 113,864 114,258 9/11/32 115,258 1,000 114,258 0 10. DEQ WASTE WATER LOAN # 1703. During fiscal year 2019, the City began drawing down on the DEQ Waste Water Loan #1703. As of September 30,2023, the City had drawn down $14,543,272. 43 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 11. BLACKFOOT URBAN RENEWAL TAX INCREMENT BONDS During fiscal year 2021, BURA sold $1,814,887 in tax increment bonds to fund construction costs associated with the Downtown Districts Projects. These bonds will be repaid from future property tax revenues. As of September 30, 2023, the annual requirements to amortize this debt including interest are as follows: Series 2021 Payment 2.86% Total Debt Date Amount Interest Principal Service 3/1/24 $18,499.86 $18,499.86 9/1/24 $191,832.71 18,499.86 $173,332.85 191,832.71 3/1/25 16,021.20 16,021.20 9/1/25 194,311.37 16,021.20 178,290.17 194,311.37 3/1/26 13,471.65 13,471.65 9/1/26 196,860.92 13,471.65 183,389.27 196,860.92 3/1/27 18,849.18 18,849.18 9/1/27 199,483.39 10,849.18 188,634.21 199,483.39 3/1/28 8,151.71 8,151.71 9/1/28 202,180.86 8,151.71 194,029.15 202,180.86 3/1/29 5,377.10 5,377.10 9/1/29 204,955.47 5,377.10 199,578.37 204,955.47 3/1/30 2,523.13 2,523.13 9/1/30 178,965.50 2,523.13 176,442.37 178,965.50 $1,368,590.22 $157,787.66 $1,293,696.39 $1,451,484.05 12. PAYMENT DUE TO BINGHAM COUNTY During 2010, BURA agreed to pay Bingham County the amount of money the County would have received from taxes on property in the Riverview Urban Renewal Area. That amount was estimated to be $362,939. It is being paid at $20,000 per year at 0% interest. As of September 30, 2023, the annual requirement to amortize this debt is as follows. Bingham County Payment 0.00% Total Debt Date Amount Interest Principal Service 9/1/24 $20,000.00 $0.00 $20,000.00 $20,000.00 9/1/25 20,000.00 0.00 20,000.00 20,000.00 9/1/26 20,000.00 0.00 20,000.00 20,000.00 9/1/27 20,000.00 0.00 20,000.00 20,000.00 9/1/28 9,606.00 0.00 9,606.00 9,606.00 $89,606.00 $0.00 $89,606.00 $89,606.00 44 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 13. BLACKFOOT URBAN RENEWAL TAX INCREMENT BONDS During fiscal year 2006, BURA sold $1,100,000 in tax increment bonds to fund construction costs associated with the Riverview Technology Park. These bonds will be repaid from future property tax revenues. As of September 30, 2023, the annual requirements to amortize this debt including interest are as follows: Series 2006 Principal Interest Interest Total Debt Date Amount Rate Amount Service March 1, 2024 $95,000.00 7.250% $11,056.25 $106,056.25 September 1, 2024 7,612.50 7,612.50 March 1, 2025 100,000.00 7.250% 7,612.50 107,612.50 September 1, 2025 3,987.50 3,987.50 March 1, 2026 110,000.00 7.250% 3,987.50 113,987.50 $305,000.00 $34,256.25 $339,256.25 14. RESTRICTED CASH BURA - As per the terms of Tax Increment Bond Series 2021, BURA agreed to deposit $181,489 in a separate account, to remain on deposit until the Bonds are paid off. As of September 30, 2022, BURA is in compliance with this bond requirements. CITY - As per the terms of Sewer Revenue Bond Series 2018, identified in the financial statements as DEQ loan WW 1501, the City agreed to deposit in a separate account an amount equal to one-tenth of an annual payment every year until the reserve equals the annual payment. As of September 30, 2022, the City has segregated $258,256 as restricted cash on the financial statements. 45 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 15. LONG-TERM DEBT The following is a summary of the City’s long-term debt transactions for the year ended September 30, 2023: Balance Incurred Satisfied Balance Amounts Due 10/1/2022 or issued or matured 9/30/2023 within one year Governmental Activities: Compensated absences $439,439 $24,572 $464,011 Operating lease payable 386,973 656,020 ($226,067) 816,926 $270,525 Finance lease contracts 81,489 (40,126) 41,363 41,363 City's share of unfunded PERSI 3,819,678 (79,115) 3,740,563 $4,727,579 $680,592 ($345,308) $5,062,863 $311,888 Business-type Activities: Compensated Absences $75,981 $789 $76,770 DEQ WWTP loan #1001 2,116,453 (195,182) 1,921,271 $198,964 DEQ WWTP loan #1501 3,321,457 (165,689) 3,155,768 172,651 DEQ WWTP loan #1703 14,541,062 2,210 14,543,272 City's share of unfunded PERSI 639,090 639,090 $20,694,043 $2,999 ($360,871) $20,336,171 $371,615 Blackfoot Urban Renewal District: Bingham County $109,606 ($20,000) $89,606 $20,000 2021 tax revenue bonds 1,462,210 (168,514) 1,293,696 173,333 2006 tax revenue bonds 390,000 (85,000) 305,000 95,000 $1,961,816 $0 ($273,514) $1,688,302 $288,333 16. LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Idaho for indebtedness payable principally from property taxes. The limit is 2% of market value per the year’s tax roll. The City’s outstanding general obligation debt is under the legal limit. 46 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 17. TRANSFERS BETWEEN FUNDS Administrative Charges: To From General Fund $905,880 Street Fund $66,396 Ambulance Fund $82,764 Airport Fund $10,236 Cemetery Fund $11,988 Library Fund $13,464 Water Fund $161,736 Sewer Fund $427,572 Sanitation fund $131,724 Storm Water Maintenance: Park Fund $28,000 Water Fund $8,000 Sewer Fund $20,000 Fund Subsidy: Parks and Recreation Fund $79,533 General Fund $79,533 18. CONTINGENT LIABILITIES To save on health insurance costs, the City has purchased a policy with large individual deductibles. Rather than pass that cost to the employees, the City has agreed to pay up to $1,000 for individuals and $2,000 for families. The City’s maximum risk at any time is approximately $170,000. The City has set up a Health Care Reserve Fund to account for this activity. The City has chosen to participate in the Idaho Independent Inter-governmental Authority Insurance, which is a self-funded insurance policy that Idaho municipalities are eligible to participate in. If in the future there are a high number of claims which depletes the reserve, the City could possibly be required to re-fund this reserve. This potential additional expense has not been determined at this time, but based upon past experience, there is sufficient money in the Health Care Reserve Fund to meet the City’s current needs. Amounts received or receivable from grantor agencies are subject to audit and adjustment by those agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 47 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2023 19. EXCESS OF EXPENDITURES OVER APPROPRIATIONS The Park Fund spent $69,174 more than was budgeted. Park Fund revenues exceeded budget amounts by $186,125. 20. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of or damage to and destruction of assets, errors and omissions, and natural disasters. Significant losses are covered by commercial insurance. 21. PRIOR PERIOD ADJUSTMENTS Anticipated Sewer fund grant revenues in the amount of $1,524,700 were recorded as receivables in the prior year. Those revenues were not received by the City. As such, the beginning Sewer fund balance has been adjusted. In fiscal year 2023, the City has separated the reporting of the PERSI Base plan and the Firefighter Retirement Fund. That change resulted in an increase to the beginning net position on the Statement of Activities in the amount of $4,775,702. 48 ---PAGE BREAK--- CITY OF BLACKFOOT IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 22. PUBLIC EMPLOYEE RETIREMENT SYSTEM Plan Description The City of Blackfoot. Idaho, (The City) contributes to the Base Plan and the Firefighter’s Retirement Fund (FRF) plans which are a cost sharing multiple-employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System). The Base Plan cover covers substantially all employers of the State of Idaho, its agencies, and various participating political subdivisions. The FRF Plan covers a closed group of firefighters who were hired before October 1, 1980, and who received benefits in addition to those provided under the PERSI Base Plan. The costs to administer the plans are financed through the contributions and investment earnings of the plans. Additional FRF Plan funding is obtained from receipts from a state fire insurance premium tax. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Base Plan and FRF Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens, not members of the Base Plan except by reason of having served on the Board. Pension Benefits The Base Plan provides retirement, disability, death, and survivor benefits of eligible members or beneficiaries. Benefits are based on members’ years of service, age, and highest average salary. Members become fully vested in their retirement benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for police/firefighters) of the average salary for the highest consecutive 42 months. The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature. 49 ---PAGE BREAK--- CITY OF BLACKFOOT IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 22. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) The FRF Plan provides retirement, disability, death, and survivor benefits of eligible members or beneficiaries. Benefits are based on members’ years of service as well as the final average salary. A firefighter must have 5years of service to be eligible for a lifetime retirement allowance at age 60. Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance is based on Idaho Code Title 72, Chapter 14. The benefit payments for the FRF Plan are calculated using a benefit formula adopted by the Idaho Legislature. The FRF Plan cost of living increase is based on the increase in the statewide average firefighter’s wage. Member and Employer Contributions Member and employer contributions paid to the Base Plan and FRF Plan are set by statute and established as a percent of covered compensation. Contribution rates are determined by the PERSI Board within limitations, as defined by State law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) that are adequate to accumulate sufficient assets to pay benefits when due. For the Base Plan, the contribution rates for employees are set by statute at 60% of the employer rate for general employees and 74% for police and firefighters. As of June 30, 2023, it was 7.16% for general employees and 9.13% for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.94% for general employees and 12.28% for police and firefighters. The City’s contributions were $553,812 for the PERSI year ended June 30, 2023. For the FRF Plan, as of June 30, 2023, the total employer rate was 13.26%. and the FRF Plan member rate was 9.83%. The City’s contributions were $83,321 for the PERSI plan year ended June 30, 2023. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the Base Plan at September 30, 2023, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s share of contributions in the Base Plan pension plan relative to the total contributions of all participation PERSI Base Plan employers. At June 30, 2023, the City’s proportion was .1090872 percent. For the FRF Plan, at September 30, 2023, the City reported it’s proportionate share of the net plan asset. The net plan asset was measured as of June 30, 2023. At June 30, the City’s proportion was 2.111804 percent. 50 ---PAGE BREAK--- CITY OF BLACKFOOT IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 22. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) For the year ended September 30, 2023, the City recognized pension expense of $1,166,963 for the Base Plan and $407,069 revenue for the FRF Plan. At September 30, 2023, the City reported deferred outflows of resources related to pension from the following sources: Base Plan Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $255,889 ($19,901) Changes in assumptions or other inputs ($295,844) $0 Net difference between projected and actual earnings on pension plan investments $0 $0 Changes in the employer's proportion and differences between the employer's contributions and the employer's proportionate contributions $1,537,088 $130,538 Contributions subsequent to the measurement date $154,928 $0 Total $1,652,061 $110,637 FRF Plan Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience Changes in assumptions or other inputs ($249,408) $0 Net difference between projected and actual earnings on pension plan investments $0 $0 Changes in the employer's proportion and differences between the employer's contributions and the employer's proportionate contributions $380,251 $0 Contributions subsequent to the measurement date $59,565 $0 Total $190,408 $0 For the Base Plan, $154,928 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending September 30, 2023. 51 ---PAGE BREAK--- CITY OF BLACKFOOT IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 22. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) For the FRF Plan, $59,565 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending September 30, 2023. The average of the expected remaining service lives of all employees that are provided with pensions through the System (active and inactive employees) determined at July 1, 2023, the beginning of the measurement period ended June 30, 2022, is 4.6 and 4.4 for the measurement period June 30, 2023. Other amounts, reported as deferred outflows of resources and deferred inflows of resources related to pensions, will be recognized in pension expense (revenue) as follows: Year ended September 30, 2023 Base Plan FRF Plan 2024 $563,974 $17,779 2025 $265,027 ($60,813) 2026 $824,458 $287,303 2027 ($67,577) ($50,861) Actuarial Assumptions - Base Plan Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year’s earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59-1322, Idaho Code, is 25 years. The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases 3.05% Salary inflation 3.05% Investment rate of return 6.35%, net of investment expenses Cost-of-living adjustments 1% 52 ---PAGE BREAK--- CITY OF BLACKFOOT IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 22. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) Contributing Members, Service Retirement Members, and Beneficiaries – Base Plan General Employees and all Beneficiaries - Male Pub-2010 General Tables increased 11% General Employees and all Beneficiaries - Female Pub-2010 General Tables increased 21% Teachers - Males Pub-2010 Teacher Tables, increased 12% Teachers - Females Pub-2010 Teacher Tables, increased 21% Fire & Police – Males Pub-2010 Safety Tables, increased 21% Fire & Police – Females Pub-2010 Safety Tables, increased 26% Disabled Members – Males Pub-2010 Safety Tables, increased 38% Disabled Members – Females Pub-2010 Safety Tables, increased 36% Actuarial Assumptions - FRF Plan Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year’s earnings of the individual between entry age and assumed exit age. Unfunded actuarial accrued liability for FRF Plan is the difference between the actuarial present value of the FRF Plan benefits not provided by the Base Plan and the FRF Plan assets. Currently FRF Plan assets exceed this actuarial present value; therefore, there is not an unfunded liability to amortize at this time. The maximum amortization period for the FRF Plan permitted under Section 59-1394, Idaho Code is 50 years. The total pension liability in the July 1, 2016 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases 3.05% Investment rate of return 6.35%, net of investment expenses Cost of living adjustment 3.05% Contributing Members, Service Retirement Members, and Beneficiaries – Base Plan Fire & Police – Males Pub-2010 Safety Tables, increased 21% Fire & Police – Females Pub-2010 Safety Tables, increased 26% Disabled Members – Males Pub-2010 Safety Tables, increased 38% Disabled Members – Females Pub-2010 Safety Tables, increased 36% 53 ---PAGE BREAK--- CITY OF BLACKFOOT IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 22. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) For the Base Plan, an experience study was performed for the period July 1, 2015 through June 30, 2020 which reviewed all economic and demographic assumptions including mortality. The Total Pension Liability as of June 30, 2023 is based on the results of an actuarial valuation date July 1, 2023. For FRF Plan, an experience study was performed for the period July 1, 2011 through June 30, 2015 which reviewed all economic and demographic assumptions including mortality. Mortality and all economic assumptions were studied in 2014 for the period from July 1, 2009 through June 30, 2013. The total Pension Asset as of June 30, 2023 is based on the results of an actuarial valuation date of July 1, 2023. The long-term expected rate of return on pension plan investments was determined using the building block approach and a forward-looking model in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers, and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of the System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2023. 2023 Asset Class DB Plans Sick Leave Fixed Income 30.0% 50.0% US/Global Equity 55.0% 39.3% International Equity 15.0% 10.7% Cash 0.0% 0.0% Total 100.0% 100.0% 54 ---PAGE BREAK--- CITY OF BLACKFOOT IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 22. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) Discount Rate The discount rate used to measure the total pension liability was 7.05%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the pension plan’s net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. Sensitivity of the Employer’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the employer’s proportionate share of the net pension liability calculated using the discount rate of 6.35 percent, as well as what the employer’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.35 percent) or 1 percentage point higher (7.35 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (5.35%) (6.35%) (7.35%) Employer's proportionate share of the net pension liability (asset) - Base Plan $7,829,606 $4,353,309 $1,512,089 Employer's proportionate share of the net pension liability (asset) – FRF Plan ($4,566,555) ($4,992,363) ($5,363,474) Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.gov. 55 ---PAGE BREAK--- 56 THIS PAGE INTENTIONALLY LEFT BLANK ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION 57 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2023 Schedule of Employer's Share of Net Pension Liability PERSI - Base Plan Last 10 - Fiscal Years * 2023 2022 2021 Employer's portion of the net pension liability 0.109087% 0.113202% 0.104984% Employer's proportionate share of the net pension liability (Asset) $4,353,309 $4,458,766 ($82,914) Employer's covered-employee payroll $4,689,717 $4,396,401 $3,915,018 Employer's proportionate share of the net pension liability as a percentage of its covered-employee payroll 92.83% 101.42% -2.12% Plan fiduciary net pension as a percentage of the total pension liability 83.83% 83.09% 100.36% 92.83% Schedule of Employer's Contributions PERSI - Base Plan Last 10 - Fiscal Years * 2022 2022 2021 Statutorialy required contribution $476,447 $524,202 $414,506 Contributions in relation to the statutorily required contribution $560,521 $539,315 $473,425 Contribution (deficiency) excess $84,074 $15,113 $58,920 Employer's covered-employee payroll $4,689,717 $4,396,401 $3,915,018 Contributions as a percentage of covered-employee payroll 10.16% 11.92% 10.59% *GASB Statement No 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which this information is available. Data reported is measured as of June 30, 2023 58 ---PAGE BREAK--- 2020 2019 2018 0.108440% 0.117487% 0.122055% $2,518,123 $1,341,079 $1,800,331 $3,633,950 $3,897,819 $3,942,465 69.29% 34.41% 45.67% 88.22% 93.79% 91.69% 2020 2019 2018 $425,455 $449,552 $473,990 $466,984 $458,294 $450,552 $41,529 $8,742 ($23,437) $3,633,950 $3,897,819 $3,942,465 11.71% 11.53% 12.02% 59 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2023 Schedule of Employer's Share of Net Pension Liability PERSI - FRF Last 10 - Fiscal Years * 2023 2022 2021 Employer's portion of the net pension asset 2.111804% 2.111804% 2.111804% Employer's proportionate share of the net pensionAsset $4,992,363 $4,335,343 $5,706,662 Employer's covered-employee payroll $1,839,389 $1,985,419 $1,839,408 Employer's proportionate share of the net pension asset as a percentage of its covered-employee payroll 271.41% 218.36% 310.24% Plan fiduciary net pension as a percentage of the total pension liability 200.58% 184.72% 211.83% Schedule of Employer's Contributions PERSI - FRF Last 10 - Fiscal Years * 2022 2022 2021 Statutorialy required contribution $0 $0 $0 Contributions in relation to the statutorily required contribution $70,672 $61,283 $53,840 Contribution (deficiency) excess $70,672 $61,283 $53,840 Employer's covered-employee payroll $1,839,389 $1,985,419 $1,839,408 Contributions as a percentage of covered-employee payroll 0.00% 0.00% 0.00% *GASB Statement No 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which this information is available. Data reported is measured as of June 30, 2023 60 ---PAGE BREAK--- 2020 2019 2018 2.111804% 2.111804% 2.111804% $3,144,459 $3,035,795 $2,389,932 $1,702,526 $1,730,535 $1,754,355 184.69% 175.43% 136.23% 155.55% 152.74% 140.15% 2020 2019 2018 $0 0 0 $182,891 $174,178 $162,740 $182,891 $174,178 $162,740 $1,702,526 $1,730,535 $1,754,355 0.00% 0.00% 0.00% 61 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 2023 Original Variance & Final Favorable Budget Actual (Unfavorable) REVENUE: Taxes: Property taxes $4,212,950 $4,151,984 ($60,966) Franchise taxes 108,251 138,363 30,112 Subtotal Taxes: 4,321,201 4,290,347 (30,854) Licenses and Permits: Business licenses 19,448 17,500 (1,948) Building permits 17,099 29,469 12,370 Plan review - State contract 173,095 71,794 (101,301) Plaqn review - State contract 66,398 32,099 (34,299) Subtotal Licenses and Permits: 276,040 150,862 (125,178) Inter-governmental: Liquor apportionment 210,000 212,356 2,356 State revenue sharing 1,471,711 1,363,586 (108,125) Blackfoot - Snake River Fire District 917,496 918,151 655 School resource officer 300,000 300,000 0 State, Federal, and local grants 141,105 145,393 4,288 Subtotal Intergovernmental: 3,040,312 2,939,486 (100,826) Miscellaneous: Administrative charges 905,877 905,880 3 Fines and forfeitures 53,267 103,853 50,586 Interest 123,739 945,932 822,193 Other 25,060 126,100 101,040 Subtotal Miscellaneous: 1,107,943 2,081,765 973,822 Total Revenue: 8,745,496 9,462,460 716,964 EXPENDITURES: Administrative: Salaries 479,345 467,175 12,170 Benefits 527,471 425,395 102,076 Travel and meeting 21,000 16,267 4,733 Office supplies and expense 189,357 178,961 10,396 The accompanying notes are an integral part of these statements. 62 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - (CONTINUED) GENERAL FUND YEAR ENDED SEPTEMBER 30, 2023 Original Variance EXPENDITURES: and Final Favorable Administrative - Continued: Budget Actual (Unfavorable) Maintenance $59,143 $57,222 $1,921 Utilities and telephone 19,460 17,030 2,430 Professional services 150,750 146,901 3,849 Department supplies and other 113,476 29,314 84,162 Insurance 228,680 250,197 (21,517) Contingency 50,000 50,000 Subtotal Administrative: 1,838,682 1,588,462 250,220 Police: Salaries 2,210,847 2,141,307 69,540 Benefits 1,197,918 1,085,185 112,733 Clothing allowance 18,000 16,956 1,044 Travel and training 28,000 24,948 3,052 Office supplies 18,600 11,826 6,774 Maintenance 57,683 52,948 4,735 Utilities and telephone 10,000 8,849 1,151 Fuel 132,189 90,004 42,185 Professional services 5,250 3,905 1,345 Department supplies and other 83,500 74,203 9,297 Bingham County 310,281 302,454 7,827 Capital outlay 137,282 193,356 (56,074) Subtotal Police: 4,209,550 4,005,941 203,609 Fire: Salaries 1,100,002 1,221,812 (121,810) Benefits 683,657 630,217 53,440 Protective clothing 23,000 24,123 (1,123) Travel and training 15,623 1,578 14,045 Office supplies 6,600 4,875 1,725 Maintenance 67,447 42,755 24,692 The accompanying notes are an integral part of these statements. 63 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - (CONTINUED) GENERAL FUND YEAR ENDED SEPTEMBER 30, 2023 Original Variance EXPENDITURES: and Final Favorable Fire - Continued: Budget Actual (Unfavorable) Utilities and telephone $36,200 $34,014 $2,186 Fuel 12,000 14,319 (2,319) Professional services 7,300 12,136 (4,836) Department supplies and other 38,455 23,288 15,167 Subtotal Fire: 1,990,284 2,009,117 (18,833) Building and Zoning: Salaries 116,311 89,357 26,954 Benefits 92,182 55,938 36,244 Travel and training 5,900 310 5,590 Office supplies 11,090 13,628 (2,538) Maintenance 12,874 14,385 (1,511) Utilities and telephone 1,920 2,090 (170) Professional services 7,700 14,227 (6,527) State building contract 120,000 119,107 893 Capital outlay 21,000 788 20,212 Subtotal Building and Zoning: 388,977 309,830 79,147 Total Expenditures: 8,427,493 7,913,350 514,143 EXCESS REVENUE (EXPENDITURES): 318,003 1,549,110 1,231,107 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 300,000 (100,000) (400,000) EXCESS REVENUE/SOURCES (EXPENDITURES/USES): $618,003 1,449,110 $831,107 FUND BALANCE - BEGINNING: 3,404,065 FUND BALANCE - ENDING: $4,853,175 The accompanying notes are an integral part of these statements. 64 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL STREET FUND YEAR ENDED SEPTEMBER 30, 2023 Variance Amended Favorable Original Budget Actual (Unfavorable) REVENUE: Property taxes $539,045 $539,045 $541,152 $2,107 Highway users' tax 696,545 696,545 845,739 149,194 County road and street 36,352 36,352 44,656 8,304 Franchise fees 68,859 68,859 105,498 36,639 Miscellaneous 9,755 9,755 Interest on investments 0 0 3,408 3,408 Total Revenue: 1,340,801 1,340,801 1,550,208 209,407 EXPENDITURES: Salaries 324,335 324,335 274,735 49,600 Benefits 350,842 350,842 245,339 105,503 Clothing 5,600 5,600 3,619 1,981 Travel and training 1,500 1,500 2,022 (522) Office supplies 600 600 1,128 (528) Maintenance 79,211 79,211 165,990 (86,779) Utilities and telephone 172,150 172,150 153,619 18,531 Fuel 40,000 40,000 33,696 6,304 Professional services 5,625 5,625 4,096 1,529 Department supplies and other 121,650 121,650 109,537 12,113 Indirect cost reimbursement 66,396 66,396 66,396 0 Grant expense 134,000 434,000 377,611 56,389 Construction materials 91,150 91,150 214,226 (123,076) Capital outlay 310,140 310,140 54,334 255,806 Total Expenditures: 1,703,199 2,003,199 1,706,348 296,851 EXCESS REVENUE (EXPENDITURES): (362,398) (662,398) (156,140) 506,258 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($362,398) ($662,398) (156,140) $506,258 FUND BALANCE - BEGINNING: 1,845,105 FUND BALANCE - ENDING: $1,688,965 The accompanying notes are an integral part of these statements. 65 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AMBULANCE FUND YEAR ENDED SEPTEMBER 30, 2023 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Hospital collections - ambulance $854,437 $900,382 $45,945 County ambulance 712,883 784,747 71,864 Bingham memorial 35,000 (35,000) Wildland Fire/Ambulance 693 693 Grants 264,000 59,673 (204,327) Miscellaneous 100,000 7,544 (92,456) Total Revenue: 1,966,320 1,753,039 (213,281) EXPENDITURES: Salaries 829,036 715,339 113,697 Benefits 541,968 382,061 159,907 Protective clothing 3,000 3,236 (236) Travel and training 23,360 12,090 11,270 Office supplies 3,100 4,081 (981) Maintenance 55,335 43,318 12,017 Utilities and telephone 5,000 4,403 597 Fuel 35,000 35,854 (854) Professional services 6,500 6,000 500 Department supplies and other 50,000 56,370 (6,370) Indirect cost reimbursement 82,768 82,764 4 Collection expense and refunds 61,000 97,674 (36,674) Capital outlay 246,000 52,924 193,076 Total Expenditures: 1,942,067 1,496,114 445,953 EXCESS REVENUE (EXPENDITURES): 24,253 256,925 232,672 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $24,253 256,925 $232,672 FUND BALANCE - BEGINNING: 230,545 FUND BALANCE - ENDING: $487,470 The accompanying notes are an integral part of these statements. 66 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARKS AND RECREATION FUND YEAR ENDED SEPTEMBER 30, 2023 Variance Favorable Original Amended Actual (Unfavorable) REVENUE: Property taxes $229,865 $229,865 $231,170 $1,305 County participation 20,000 20,000 21,500 1,500 Grants 138,041 138,041 Golf course 734,460 734,460 817,365 82,905 Park reservation fees and donations 30,473 30,473 40,738 10,265 Recreation fees and donations 21,724 21,724 28,854 7,130 Jensen Grove Recharge 0 0 66,764 66,764 Storm water maintenance fee 28,000 28,000 28,000 0 Interest on investments 1,415 1,415 Other 14,841 14,841 Total Revenue: 1,064,522 1,064,522 1,388,688 324,166 EXPENDITURES (Parks): Salaries 188,683 188,683 172,720 15,963 Benefits 81,734 81,734 82,036 (302) Clothing allowance 1,000 1,000 768 232 Travel and training 2,000 2,000 117 1,883 Office supplies 1,050 1,050 371 679 Maintenance 176,586 176,586 101,385 75,201 Utilities and telephone 26,000 26,000 19,161 6,839 Fuel 25,000 25,000 18,841 6,159 Professional services 2,500 2,500 17,041 (14,541) Department supplies and other 36,650 36,650 21,863 14,787 RV Dump Grant 100,000 133,124 (33,124) Capital outlay 25,000 25,000 19,500 5,500 Total Expenditures (Parks): 566,203 666,203 586,927 79,276 EXPENDITURES (Recreation): Salaries 13,493 (13,493) Benefits 1,636 Department supplies and other 0 Total Expenditures (Recreation): 0 0 15,129 (13,493) The accompanying notes are an integral part of these statements. 67 ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARKS AND RECREATION FUND - (CONTINUED) YEAR ENDED SEPTEMBER 30, 2023 Variance Favorable Original Amended Actual (Unfavorable) EXPENDITURES (Pool): Maintenance $0 Utilities and telephone 0 Total Expenditures (Pool): $0 $0 $0 0 EXPENDITURES (Golf): Salaries 290,482 290,482 293,245 (2,763) Benefits 192,093 192,093 193,284 (1,191) Clothing allowance 1,250 1,250 548 702 Travel and training 1,000 1,000 50 950 Office supplies 18,571 18,571 6,784 11,787 Maintenance 95,540 95,540 78,185 17,355 Utilities and telephone 29,500 29,500 39,296 (9,796) Fuel 6,500 6,500 20,907 (14,407) Professional services 1,249 1,249 1,340 (91) Resale items 100,000 100,000 199,289 (99,289) Department supplies and other 31,136 31,136 43,695 (12,559) Capital outlay 31,000 31,000 56,655 (25,655) Total Expenditures (Golf): 798,321 798,321 933,278 (134,957) Total Fund Expenditures: 1,364,524 1,464,524 1,535,334 (69,174) EXCESS REVENUE (EXPENDITURES): (300,002) (400,002) (146,646) 253,356 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 300,000 300,000 100,000 (200,000) EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($100,002) (46,646) $53,356 FUND BALANCE - BEGINNING: 0 FUND BALANCE - ENDING: ($46,646) The accompanying notes are an integral part of these statements. 68 ---PAGE BREAK--- BLACKFOOT URBAN RENEWAL AGENCY SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 2023 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $1,100,000 $819,828 ($280,172) Investment income 4,500 117,600 113,100 Grant application fees 50 50 Total Revenue: 1,104,500 937,478 (167,022) EXPENDITURES: Administration 4,000 1,364 2,636 Professional fees 18,000 17,067 933 Projects: Downtown District: Façade improvement grants 78,600 78,600 Blight and development projects 1,598,051 1,598,051 Johnson MKR project 180,000 (180,000) Milmor (blight) 116,943 (116,943) Movie Mill 2,389 (2,389) 2021 Revenue Bond payment 420,664 210,333 210,331 Riverview District: Façade improvements 100,000 100,000 Blight and development projects 1,400,000 1,400,000 Twin Bridges Park project 8,780 (8,780) Bingham County 20,000 20,000 2006 Revenue Bond payment 225,000 109,873 115,127 Total Expenditures: 3,864,315 666,749 3,197,566 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($2,759,815) 270,729 $3,030,544 FUND BALANCE - BEGINNING: 2,979,449 FUND BALANCE - ENDING: $3,250,178 The accompanying notes are an integral part of these statements. 69 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2023 Capital Airport Cemetery Library Improvements Fund Fund Fund Fund ASSETS: Cash and investments $447,153 $194,325 $550,227 $72,008 Receivables: Property taxes 1,443 5,372 8,370 $3,268 Total Assets: $448,596 $199,697 $558,597 $75,276 LIABILITIES: Accounts payable $1,519 $4,252 $117,070 Total Liabilities: 1,519 4,252 117,070 $0 DEFERRED INFLOW OF RESOURCES Unavailable revenue - Property taxes 1,289 4,920 7,660 2,985 FUND BALANCE: Assigned - Capital Improvements Committed 445,788 190,525 433,867 72,291 Unassigned Total Fund Balance: 445,788 190,525 433,867 72,291 Total Liabilities and Fund Balance: $448,596 $199,697 $558,597 $75,276 70 ---PAGE BREAK--- Health Total Care Non-major Reserve Governmental Fund Funds $440,432 $1,704,145 18,453 $440,432 $1,722,598 $122,841 $0 122,841 0 16,854 0 440,432 1,582,903 0 440,432 1,582,903 $440,432 $1,722,598 71 ---PAGE BREAK--- Capital Airport Cemetery Library Improvements REVENUES: Fund Fund Fund Fund Property taxes $45,542 $174,524 $271,641 $106,672 Fees 46,209 51,300 10,917 Grants and contributions 91,786 675 Blackfoot Rural Library District 270,700 Interest 355 1,030 1,619 663 Miscellaneous 9 495 Total Revenues: 183,901 227,349 555,552 107,335 EXPENDITURES: General government 240,551 158 Airport 172,445 Library 587,571 Capital outlay 42,621 Total Expenditures: 172,445 240,551 587,571 42,779 EXCESS REVENUE (EXPENDITURES): 11,456 (13,202) (32,019) 64,556 OTHER FINANCING SOURCES (USES): Operating transfers (to) from other funds 0 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): 11,456 (13,202) (32,019) 64,556 FUND BALANCE - BEGINNING: 434,332 203,727 465,886 7,735 FUND BALANCE - ENDING: $445,788 $190,525 $433,867 $72,291 CITY OF BLACKFOOT, IDAHO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2023 72 ---PAGE BREAK--- Health Total Care Non-major Reserve Governmental Fund Funds $598,379 $69,022 177,448 92,461 270,700 3,667 504 69,022 1,143,159 92,055 332,764 172,445 587,571 42,621 92,055 1,135,401 (23,033) 7,758 0 0 (23,033) 7,758 463,465 1,575,145 $440,432 $1,582,903 73 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AIRPORT FUND YEAR ENDED SEPTEMBER 30, 2023 Variance Favorable Original Amended Actual (Unfavorable) REVENUE: Property taxes $44,343 $44,343 $45,542 $1,199 Charges for services 45,302 45,302 46,004 702 Fuel 50,000 50,000 205 (49,795) Miscellaneous 9 9 Grants and contributions 91,786 91,786 Interest on investments 355 355 Total Revenue: 139,645 139,645 183,901 44,256 EXPENDITURES: Salaries 0 Benefits 0 Office supplies 250 250 50 200 Maintenance 46,167 46,167 16,189 29,978 Utilities and telephone 11,360 11,360 7,814 3,546 Fuel 51,000 51,000 10,864 40,136 Professional services 12,136 12,136 11,158 978 Department supplies and other 8,500 8,500 8,500 Indirect cost reimbursement 10,232 10,232 10,236 Grant expense 0 116,134 116,134 0 Total Expenditures: 139,645 255,779 172,445 83,334 EXCESS REVENUE (EXPENDITURES): 0 (116,134) 11,456 127,590 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 ($116,134) 11,456 $127,590 FUND BALANCE - BEGINNING: 434,332 FUND BALANCE - ENDING: $445,788 74 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CEMETERY FUND YEAR ENDED SEPTEMBER 30, 2023 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $270,700 $174,524 ($96,176) Charges for services 76,555 51,300 (25,255) Miscellaneous 495 495 Interest on investments 1,030 1,030 Total Revenue: 347,255 227,349 (119,906) EXPENDITURES: Salaries 87,718 91,316 (3,598) Benefits 71,150 71,065 85 Clothing 500 500 Office supplies 400 400 Travel and training 1,200 10 1,190 Maintenance 18,885 17,899 986 Utilities and telephone 6,950 4,298 2,652 Fuel 6,000 3,827 2,173 Professional services 5,000 5,062 (62) Department supplies and other 8,200 8,200 Indirect cost reimbursement 11,983 11,988 Capital outlay 32,625 35,086 (2,461) Total Expenditures: 250,611 240,551 10,060 EXCESS REVENUE (EXPENDITURES): 96,644 (13,202) (109,846) OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $96,644 (13,202) ($109,846) FUND BALANCE - BEGINNING: 203,727 FUND BALANCE - ENDING: $190,525 75 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LIBRARY FUND YEAR ENDED SEPTEMBER 30, 2023 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $270,700 $271,641 $941 Charges for services 10,306 10,917 611 Blackfoot Rural Library District 270,700 270,700 0 Interest on investments 1,619 1,619 Grants and contributions 675 675 Total Revenue: 551,706 555,552 3,846 EXPENDITURES: Salaries 256,976 212,637 44,339 Benefits 90,918 78,522 12,396 Books and subscriptions 82,098 66,903 15,195 Travel and training 1,500 784 716 Office supplies 12,650 6,639 6,011 Maintenance 76,482 78,024 (1,542) Utilities and telephone 13,220 11,609 1,611 Professional services 8,900 6,729 2,171 Department supplies and other 15,500 9,032 6,468 Indirect cost reimbursement 13,464 13,464 0 Capial outlay 205,000 103,228 101,772 Total Expenditures: 776,708 587,571 189,137 EXCESS REVENUE (EXPENDITURES): (225,002) (32,019) 192,983 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($225,002) (32,019) $192,983 FUND BALANCE - BEGINNING: 465,886 FUND BALANCE - ENDING: $433,867 76 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CAPITAL IMPROVEMENTS FUND YEAR ENDED SEPTEMBER 30, 2023 Original & Variance Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $105,266 $106,672 $1,406 Interest on investments 800 663 (137) Total Revenue: 106,066 107,335 1,269 EXPENDITURES: Professional services 66 158 (92) Capital outlay 106,000 42,621 63,379 Total Expenditures: 106,066 42,779 63,287 EXCESS REVENUE (EXPENDITURES): 0 64,556 64,556 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 64,556 $64,556 FUND BALANCE - BEGINNING: 7,735 FUND BALANCE - ENDING: $72,291 77 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HEALTH CARE RESERVE FUND YEAR ENDED SEPTEMBER 30, 2023 Original & Variance Final Favorable Budget Actual (Unfavorable) REVENUE: Reserve receipts $150,800 $69,022 ($81,778) Total Revenue: 150,800 69,022 (81,778) EXPENDITURES: Healthcare expense 105,800 76,340 29,460 Flex spending expense 25,000 (132) 25,132 Benefits administration 20,000 15,847 4,153 Total Expenditures: 150,800 92,055 58,745 EXCESS REVENUE (EXPENDITURES): 0 (23,033) (23,033) OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 (23,033) ($23,033) FUND BALANCE - BEGINNING: 463,465 FUND BALANCE - ENDING: $440,432 78 ---PAGE BREAK--- SINGLE AUDIT SECTION 79 ---PAGE BREAK--- Morgan J Hatt CPA PC Certified Public Accountant 1500 Venture Way Apt. #4201 [EMAIL REDACTED] Phone: (208) 317-6040 Pocatello, Idaho 83201 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJORPROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of The City Council City of Blackfoot Idaho Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program I have audited the City of Blackfoot’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major Federal programs for the year ended September 30, 2023. The City’s major Federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. In my opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended September 30, 2023. Basis for Opinion on Each Major Federal Program I conducted my audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). My responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of my report. I am required to be independent of the City, and to meet other ethical responsibilities, in accordance with relevant ethical requirements relating to my audit. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion on compliance for each major Federal program. My audit does not provide a legal determination of City’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Federal programs. 80 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 2 Auditor’s Responsibilities for the Audit of Compliance My objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on my audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major Federal program, as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, I:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. I am required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that I identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected and corrected on a timely basis. A significant deficiency in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 81 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 3 My consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during my audit I did not identify any deficiencies in internal control over compliance that I consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. My audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Pocatello, Idaho 82 Morgan J Hatt CPA PC January 17, 2024 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO BLACKFOOT, IDAHO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED SEPTEMBER 30, 2023 Catalogue of Federal Domestic Title Assistance Number Expenditures Department of Transportation : Airport Improvement - (Direct funding) 20.106 $116,231 Highway Planning & Construction (State of Idaho pass-through funding) 20.205 $54,807 State Community Highway Safety (State of Idaho pass-through funding) 20.600 $46,883 Subtotal of Department of Transportation: $217,921 Environmental Protection Agency: Capitalization grants and revolving loans WW 1703 (State of Idaho pass-through funding) 66.468 $2,210 Total Federal Expenditures: $754,443 Note 1: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of the City of Blackfoot, Idaho for the year ended September 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S., Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The April 2022 Compliance Supplement was used to audit major programs. Because the Schedule presents only a selected portion of the City's operations, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Blackfoot, Idaho. Note 2: Summary of Significant Accounting Policies - Expenditures reported on the Schedule are on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3: Indirect Cost Rate - The City of Blackfoot, Idaho has elected not to use the 10% de minimus cost rate allowed under the Uniform Guidance. 83 Department of the Treasury: Cares Act (State of Idaho pass-through funding) 21.027 $511,953 Department of Health and Human Services: Substance Abuse and Mental Health Services (State of Idaho pass-through funding) 93.243 $22,359 ---PAGE BREAK--- Section I - Summary of Auditor's Results: Financial Statements: Type of auditor's report issued: Unqualified Internal control over financial reporting: Material weaknesses identified? No Reportable conditions identified that are not considered to be material weaknesses? No Noncompliance material to financial statements noted? No Federal Awards: Internal control over major programs: Material weaknesses identified? No Reportable conditions identified that are not considered to be material weaknesses? No Type of auditor's report issued on compliance for major programs? Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? No Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? Yes Section II - Summary of Auditor's Results: None Section III - Federal Award Findings and Questioned Costs: None CITY OF BLACKFOOT, IDAHO SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2023 84 21..027 ARPA Identification of Major programs: CFDA Number(s) Name of Federal Program