Document Monument_doc_ce9194ad58

Town of Monument, Colorado Financial Statements with Independent Auditors’ Report December 31, 2021 with Comparative Totals for December 2020 ---PAGE BREAK--- TOWN OF MONUMENT, COLORADO Basic Financial Statements December 31, 2021 BOARD OF TRUSTEES Mayor Don Wilson Mayor Pro Tem Kelly Elliott Trustee Mitchell LaKind Trustee Redmond Ramos Trustee Jim Romanello Trustee Darcy Schoening Trustee Ron Stephens ADMINISTRATIVE STAFF Mike Foreman ʹ Town Manager Monica Hirjoi ʹ Interim Treasurer/Finance Director Laura Hogan ʹ Town Clerk Thomas Tharnish ʹ Public Works Director C.Sean Hemingway ʹ Police Chief Nina Ruiz ʹ Planning Director Erica Romero - Director of Operations ---PAGE BREAK--- Town of Monument, Colorado Table of Contents December 31, 2021 Independent Auditor’s Report 1 Management’s Discussion and Analysis i Basic Financial Statements Government-wide Financial Statements Statement of Net Position 4 Statement of Activities 5 Governmental Funds Balance Sheet 6 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 7 Statement of Revenues, Expenditures and Changes in Fund Balance 8 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities 9 Proprietary Fund Statement of Net Position 10 Statement of Revenues, Expenses and Changes in Net Position 11 Statement of Cash Flows 12 Notes to Financial Statements 13 Required Supplementary Information Budgetary Comparison Schedules General Fund 26 2A Water ASD Fund 27 Notes to Required Supplementary Information 28 Supplementary Information Nonmajor Governmental Funds Combining Balance Sheet 29 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 30 Budgetary Comparison Schedules Community Development Fund 31 Conservation Trust Fund 32 Traffic Impact Fee Fund 33 Storm Drainage Impact Fee Fund 34 Capital Projects Fund 35 Water Fund 36 ---PAGE BREAK--- Town of Monument, Colorado Table of Contents December 31, 2021 (Continued) Compliance Section State Compliance Local Highway Finance Report 37 ---PAGE BREAK--- Denver Office: 750 W. Hampden Avenue Suite 400 Englewood, Colorado 80110 TEL: [PHONE REDACTED] FAX: [PHONE REDACTED] www.HinkleCPAs.com Office Locations: Colorado Springs, CO Denver, CO Tulsa, OK Independent Auditor’s Report Honorable Mayor and Members of the Board of Trustees Town of Monument Monument, Colorado Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the business-type activities and each major fund of the Town of Monument, Colorado (the Town) as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the basic financial statements of the Town, as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities and each major fund of the Town as of December 31, 2021, and the respective changes in financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The Town’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, 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. ---PAGE BREAK--- Honorable Mayor and Members of the Board of Trustees Town of Monument, Colorado Page 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are 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 our 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 GAAS 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 GAAS and Government Auditing Standards, we:  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 Town of Monument, Colorado’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 our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Town of Monument, Colorado’s ability to continue as a going concern for a reasonable period of time. We are 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 we identified during the audit. ---PAGE BREAK--- Honorable Mayor and Members of the Board of Trustees Town of Monument, Colorado Page 3 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The Town of Monument, Colorado 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. Our opinion on the basic financial statements is not affected by this missing information. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Monument, Colorado’s basic financial statements. The supplementary information and the local highway finance report listed in the table of contents 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 the information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Englewood, Colorado June 24, 2022 ---PAGE BREAK--- Town of Monument, Colorado 2021 Management’s Discussion & Analysis i This discussion and analysis of the Town of Monument’s financial performance provides an overview of the Town’s financial activities for the fiscal year ended December 31, 2021. Please read it in conjunction with the Town’s financial statements. This report contains other supplementary information in addition to the basic financial statements themselves. Financial Highlights  The assets of the Town of Monument exceeded its liabilities at the close of 2021 by $34,165,527 (net position).  The Town of Monument’s total net position increased by $5,001,711, which was higher than the increase in 2020 of $3,564,592.  At December 31, 2021, the Town of Monument’s governmental funds reported combined ending fund balances of $11,907,039 an increase of $2,993,032 in comparison with the prior year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town of Monument’s basic financial statements. The Town of Monument’s basic financial statements comprise three components: 1) the government‐wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This reports also contains other supplementary information in addition to the basic financial statements themselves. Government‐wide Financial Statements. The government‐wide financial statements are designed to provide readers with a broad overview of the Town of Monument’s finances, in a manner similar to a private‐sector business. The statement of net position presents information on all the Town of Monument’s assets, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town of Monument is improving or deteriorating. The statement of activities presents information showing how the Town of Monument’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). Both of the government‐wide financial statements distinguish functions of the Town of Monument that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business‐type activities). The governmental activities of the Town of Monument include general government, public safety (law enforcement & court), public works (streets, parks and recreation, cemetery) and planning. The business‐type activities of the Town of Monument include water. ---PAGE BREAK--- Town of Monument, Colorado 2021 Management’s Discussion & Analysis ii Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Monument, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. All the Town’s funds can be divided into two categories: governmental funds and proprietary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government‐wide financial statements. However, unlike governmental‐wide financial statements, governmental fund statements focus on near‐term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Most of the Town’s basic services are reported in governmental funds and use the modified accrual basis of accounting. Because the focus of governmental funds is narrower than that of the government‐wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government‐wide financial statements. By doing so, readers may better understand the long‐term impact of the government’s near‐term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Proprietary fund. The Town’s one proprietary fund is the enterprise fund. Enterprise funds are used to report the same functions presented as business‐type activities in the government‐wide financial statements. Propriety funds provide the same type of information as the government‐wide financial statements, only in more detail. The proprietary fund financial statements provide information for the Town’s water fund. Notes to Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government‐wide and fund financial statements. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town of Monument’s general and 2A water funds. These budget comparisons schedules can be found on pages 26 and 27 of this report. The combining and individual fund financial statements and schedules are presented immediately following the required supplementary information. ---PAGE BREAK--- Town of Monument, Colorado 2021 Management’s Discussion & Analysis iii Government‐wide Financial Analysis As previously stated, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the Town of Monument, assets exceeded liabilities by $34,165,527 at the end of 2021 and at the end of 2020 by $29,163,816, resulting in an increase in Total Net Position of $5,001,711. 2021 2020 2021 2020 Governmental Activities Governmental Activities Business‐type Activities Business‐type Activities 2021 Total 2020 Total Current and other assets $14,499,216 $11,338,178 $22,660,381 $24,861,915 $ 37,159,597 $ 36,200,093 Capital assets, net 9,088,803 9,804,895 13,698,858 9,023,788 22,787,661 18,828,683 Total assets 23,588,019 21,143,073 36,359,239 33,885,703 59,947,258 55,028,776 Long term liabilities 461,572 450,514 21,216,254 21,878,694 21,677,826 22,329,208 Other liabilities 1,512,008 1,512,391 1,366,591 929,206 2,878,599 2,441,597 Total liabilities 1,973,580 1,962,905 22,582,845 22,807,900 24,556,425 24,770,805 Deferred Inflow of Resources Deferred Property Tax Revenue 1,225,306 1,094,155 ‐ ‐ 1,225,306 1,094,155 Net Position Net investment in capital assets 8,756,600 9,524,836 10,122,872 9,023,788 18,879,472 18,548,624 Restricted 216,640 224,445 677,619 677,293 894,259 901,738 Unrestricted 11,415,893 8,336,732 2,975,903 1,376,722 14,391,796 9,713,454 Total net position $20,389,133 $18,086,013 $13,776,394 $11,077,803 $34,165,527 $29,163,816 The largest portion of the Town of Monument’s net position, $18,879,472, reflects its investment in capital assets (e.g. land, buildings, infrastructure, vehicles, equipment, etc.), less any related outstanding debt used to acquire those assets. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. A small portion of the Town of Monument’s net position, $894,259, represents resources that are subject to external restriction on how they may be used. The remaining unrestricted balance is $14,391,796. ---PAGE BREAK--- Town of Monument, Colorado 2021 Management’s Discussion & Analysis iv Changes in Net Position The Town’s net position increased $5,001,711 during 2021. Governmental Activities reported an $1,936,750 increase in revenue, with sales tax revenue and Other taxes being the largest contributors. CHANGES IN NET POSITION 2021 Governmental Activities 2020 Governmental Activities 2021 Business Type Activities 2020 Business Type Activities 2021 Total 2020 Total Revenues: Program revenues: Charges for Services $845,533 $495,971 2,565,904 2,000,571 $3,411,437 $2,496,542 Operating Grants & Contributions 1,105,642 705,574 ‐ 201 1,105,642 705,775 Capital Grants & Contributions 63,946 50,205 2,139,960 1,063,580 2,203,906 1,113,785 General revenues: Property taxes 1,222,991 1,179,796 ‐ ‐ 1,222,991 1,179,796 Sales taxes 7,895,195 6,842,794 455,438 294,959 8,350,633 7,137,753 Franchise taxes 447,731 404,450 ‐ ‐ 447,731 404,450 Other Taxes 915,017 308,678 ‐ ‐ 915,017 308,678 Investment income 5,601 30,296 12,031 9,369 17,632 39,665 Other Misc. 36,061 27,983 76,179 31,108 112,240 59,091 Transfers 38,665 593,885 (38,665) (593,885) ‐ ‐ Total revenues 12,576,382 10,639,632 5,210,847 2,805,903 17,787,229 13,445,535 Expenses: General government 2,754,021 2,722,218 ‐ ‐ 2,754,021 2,722,218 Public safety 2,555,014 2,424,906 ‐ ‐ 2,555,014 2,424,906 Public works & parks 3,016,453 2,469,449 ‐ ‐ 3,016,453 2,469,449 Capital Outlay 1.940,117 24,594 ‐ ‐ 1,940,117 24,594 Interest on long‐term debt 7,657 10,584 640,824 87,564 648,481 98,148 Water ‐ ‐ 1,871,432 2,141,628 1,871,432 2,141,628 Total expenses 10,273,262 7,651,751 2,512,256 2,229,192 12,785,510 9,880,943 Change in net position 2,303,120 2,987,881 2,698,591 576,711 5,001,711 3,564,592 Net position, Beginning of year 18,086,013 15,098,132 11,077,803 10,501,092 29,163,816 25,599,224 Net Position, End of year $20,389,133 $18,086,013 13,776,394 11,077,803 $34,165,527 $29,163,816 ---PAGE BREAK--- Governmental Activities Sales and use taxes are the Town’s largest governmental activities revenue source at 63%. Property taxes are the second largest revenue source at 10% of the Town’s revenue for governmental activities. Operating grants and contributions comprise the third largest revenue source of the Town’s governmental activities at Charges for services 7% Operating grants and contributions 9% Capital grants and contributions 1% Property & specific ownership taxes 10% Sales & use taxes 63% Other taxes 7% Franchise fees 4% Investment income 0% Miscellaneous 2% Revenues by Source - Governmental Activities Charges for services Operating grants and contributions Capital grants and contributions Property & specific ownership taxes Sales & use taxes Other taxes Franchise fees Investment income Miscellaneous ---PAGE BREAK--- Town of Monument, Colorado 2021 Management’s Discussion & Analysis vi Business‐type Activities Charges for services account for 49% of the Town’s revenue for business‐type activities while capital grants and contributions accounted for 41%. Sales taxes account for 9% and the remaining interest income, grants & contributions and miscellaneous revenue accounts for 1% of total revenues. Financial Analysis of the Town’s Funds The Town of Monument uses fund accounting to ensure and demonstrate compliance with finance‐ related legal requirements. Charges for services 49% Operating grants and contributions 0% Capital grants and contributions 41% Sales taxes Investment income 0% Miscellaneous 1% Revenues by Source ‐ Business‐type Activities Charges for services Operating grants and contributions Capital grants and contributions Sales taxes Investment income Miscellaneous ---PAGE BREAK--- Town of Monument, Colorado 2021 Management’s Discussion & Analysis vii Governmental Funds. The focus of the Town’s governmental funds is to provide information on near‐ term in‐flows, out‐flows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $11,907,039, an increase of $2,993,032 in comparison with the prior year. Of this amount, 35.8% ($4,259,658) constitutes unrestricted, unassigned fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is categorized to indicate that it is not available for new spending because it is classified as one of the following: A) nonspendable for prepaids ($63,984), B) Restricted for Emergencies ($173,626), C) restricted for parks and recreation ($146,262), or D) committed ($7,263,509). The general fund is the chief operating fund of the Town. At the end of the current fiscal year, unassigned fund balance of the general fund was $4,259,658 while total fund balance amounted to $11,907,658 The fund balance of the Town’s general fund increased by $2,993,032 during the current fiscal year. Key factors in this change are as follows:  Increase in sales tax collections over the prior year.  Reduction of expenses for projects that were delayed during the current fiscal year that will be expended in the next fiscal year.  Purposefully working to increase the Town’s General Fund balance reserves. The fund balance of the Town’s 2A water fund increased by $134,074 during the current fiscal year. Key factors in this change are as follows:  Increase in sales tax collections over the prior year.  Capital Projects budgeted were pushed on to a future upcoming year. Proprietary Funds. As of the end of the current fiscal year, the Town’s water fund reported an ending net position of $13,776,394, an increase of $2,698,591 in comparison with the prior year. Of this amount, 21.6% ($2,975,903) constitutes unrestricted net position, which is available for spending. The remainder of net position is categorized to indicate that it is not available for new spending because it is classified as one of the following: A) net investment in capital assets ($10,122,872), or B) restricted for future water storage ($677,619). As stated above, the net position of the water fund increased by $2,698,591 during the current fiscal year. Key factors in this change are as follows:  Increase in sales tax collections over the prior year.  Increase in tap fees over the prior year.  Reduction in expenses compared to budget in operations and maintenance. ---PAGE BREAK--- Town of Monument, Colorado 2021 Management’s Discussion & Analysis viii General Fund Budgetary Highlights The Board of Trustees must approve increases in the expenditure budget for any fund. Line item budget transfers are allowed within a fund with the approval of the Town Manager. The General fund final budget included a decrease in fund balance of $144,213 and the actual increase in fund balance was $2,411,271. Significant budgetary variances are as follows:  $1,689,952 additional tax revenue collected over budgeted.  Annual expenditures under budget by $308,046, mainly due to budget cutbacks and employee furloughs during COVID‐19 with economy and revenue uncertainty. Capital Assets and Debt Administration Capital Assets. The Town of Monument’s investment in capital assets for its governmental and business‐ type activities as of December 31, 2021 totaled $22,787,661 (net of accumulated depreciation). Water fund capital assets represent 60% of this total. Major capital asset events during the current fiscal year included the following:  Governmental activities expenditures including $9,000 in construction in progress, and $331,716 in street improvements for total capital outlay of $331,716.  Business‐type activities including capital outlay of $38,920 in other equipment, $152,000 in equipment and vehicles for a total depreciable capital outlay of $190,920. Note 5 of the financial statements provide a detailed summary of the Town’s capital assets. Long‐term Debt. At the end of the current fiscal year, the Town had total long‐term debt outstanding of $22,492,479. Of this amount, $603,982 was debt of governmental activities while $21,888,488 was debt of business‐type activities. The Town’s long‐term debt decreased by $755,205 during the current fiscal year. Note 6 of the financial statements provide a detailed summary on the Town’s long‐term debt. Economic Factors and Next Year’s Budget The Town considered these factors in preparing the Town’s budget for the 2021 fiscal year:  The economic vitality of the Town  Inflationary effect on expenses  Legislative outlooks ---PAGE BREAK--- Town of Monument, Colorado 2021 Management’s Discussion & Analysis ix Requests for Information This financial report is designed to provide a general overview of the Town of Monument’s finances for all those with an interest in the Town’s finances. Questions concerning any of the information provided in this report or requests for additional financial information, may be addressed to the Town Treasurer at the Town of Monument, 645 Beacon Lite Road, Monument, Colorado, 80132. ---PAGE BREAK--- Basic Financial Statements ---PAGE BREAK--- 2020 Assets Cash and Investments $ 11,064,426 $ 21,744,210 $ 32,808,636 $ 32,328,706 Restricted Cash and Investments 43,077 677,619 720,696 713,178 Property Taxes Receivable 1,225,306 - 1,225,306 1,094,155 Sales and Other Receivable 2,100,082 - 2,100,082 1,754,586 Accounts Receivable 2,341 238,552 240,893 246,036 Prepaid Tap Fees - Water Line Loop - - - - Prepaid Expenses 63,984 - 63,984 63,432 Capital Assets, Not being depreciated 1,961,744 8,917,003 10,878,747 5,937,712 Capital Assets, Net of accumulated depreciation 7,127,059 4,781,855 11,908,914 12,890,971 Total Assets 23,588,019 36,359,239 59,947,258 55,028,776 Liabilities Accounts Payable 678,649 561,345 1,239,994 931,969 Accrued Salaries and Benefits 308,235 40,998 349,233 135,062 Accrued Interest 2,727 78,914 81,641 114,915 Developer Escrow and Deposits 379,987 13,100 393,087 473,108 Noncurrent Liabilities Due Within One Year 142,410 672,234 814,644 786,543 Due in More Than One Year 461,572 21,216,254 21,677,826 22,329,208 Total Liabilities 1,973,580 22,582,845 24,556,425 24,770,805 Deferred Inflows of Resources Deferred Property Taxes 1,225,306 - 1,225,306 1,094,155 Net Position Net Investment in Capital Assets 8,756,600 10,122,872 18,879,472 18,548,624 Restricted for Emergencies 173,626 - 173,626 190,600 Restricted for Parks and Recreation 43,014 - 43,014 33,845 Restricted for Future Water Storage - 677,619 677,619 677,293 Restricted for Water Line Loop - - - Unrestricted, unreserved 11,415,893 2,975,903 14,391,796 9,713,454 Total Net Position $ 20,389,133 $ 13,776,394 $ 34,165,527 $ 29,163,816 Town of Monument, Colorado Statement of Net Position December 31, 2021 With Comparative Totals for December 31, 2020 Total Primary Government Activities Activities 2021 Governmental Business-Type See Notes to the Financial Statements. 4 ---PAGE BREAK--- 2021 2020 Primary Government Governmental Activities General Government $ 2,754,021 $ 397,156 $ 1,101,738 $ - $ (1,255,127) $ - $ (1,255,127) $ (1,738,731) Public Safety 2,555,014 32,048 3,904 - (2,519,062) - (2,519,062) (2,381,942) Public Works 2,089,332 313,081 - - (1,776,251) - (1,776,251) (1,539,089) Parks and Recreation 927,121 103,248 - 63,946 (759,927) - (759,927) (705,061) Capital Outlay 1,940,117 - - - (1,940,117) - (1,940,117) (24,594) Interest on Long-Term Debt 7,657 - - - (7,657) - (7,657) (10,584) Total Governmental Activities 10,273,262 845,533 1,105,642 63,946 (8,258,141) - (8,258,141) (6,400,001) Business-Type Activities Water 1,871,432 2,565,904 - 2,139,960 - 2,834,432 2,834,432 922,724 Interest on Long-Term Debt 640,824 - - - - (640,824) (640,824) (87,564) Total Business-Type Activities 2,512,256 2,565,904 - 2,139,960 - 2,193,608 2,193,608 835,160 Total Primary Government $ 12,785,518 $ 3,411,437 $ 1,105,642 $ 2,203,906 $ (8,258,141) $ 2,193,608 $ (6,064,533) $ (5,564,841) General Revenues Sales and Use Taxes 7,895,195 455,438 8,350,633 6,679,327 Property Taxes 1,222,991 - 1,222,991 1,179,796 Franchise Taxes 447,731 - 447,731 404,450 Auto Sales Taxes 543,239 - 543,239 458,426 Other Taxes 371,778 - 371,778 308,678 Investment Income 5,601 12,031 17,632 39,665 Miscellaneous 36,061 76,179 112,240 59,091 Transfers 38,665 (38,665) - - Total General Revenues and Transfers 10,561,261 504,983 11,066,244 9,129,433 Change in Net Position 2,303,120 2,698,591 5,001,711 3,564,592 Net Position, Beginning of year 18,086,013 11,077,803 29,163,816 25,599,224 Net Position, End of year $ 20,389,133 $ 13,776,394 $ 34,165,527 $ 29,163,816 Functions/Programs Contributions Grants and Capital Expenses Services Charges for Grants and Contributions Program Revenues Net (Expense) Revenue and Change in Net Position Governmental Activities Business-Type Activities Total Operating Primary Government Town of Monument, Colorado Statement of Activities For the Year Ended December 31, 2021 With Comparative Totals for December 31, 2020 See Notes to the Financial Statements. 5 ---PAGE BREAK--- Assets Cash and Investments $ 3,656,406 $ 6,235,219 $ 1,172,801 $ 11,064,426 $ 8,317,785 Restricted Cash and Investments - - 43,077 43,077 35,885 Property Taxes Receivable 1,225,306 - - 1,225,306 1,094,155 Other Taxes Receivable 2,100,082 - - 2,100,082 1,754,586 Accounts Receivable 2,341 - - 2,341 72,335 Prepaid Expenses 63,984 - - 63,984 63,432 Total Assets $ 7,048,119 $ 6,235,219 $ 1,215,878 $ 14,499,216 $ 11,338,178 Liabilities Accounts Payable $ 640,971 $ 21,510 $ 16,168 $ 678,649 $ 748,575 Accrued Salaries and Benefits 304,587 - 3,648 308,235 117,533 Developer Escrow 379,987 - - 379,987 463,908 Total Liabilities 1,325,545 21,510 19,816 1,366,871 1,330,016 Deferred Inflows of Resources Property Taxes 1,225,306 - - 1,225,306 1,094,155 Fund Balance Nonspendable 63,984 - - 63,984 63,432 Restricted for Emergencies 173,626 - - 173,626 209,000 Restricted for Parks and Recreation - - 146,262 146,262 33,845 Committed - 6,213,709 1,049,800 7,263,509 6,468,891 Unrestricted, Unassigned 4,259,658 - - 4,259,658 2,138,839 Total Fund Balance 4,497,268 6,213,709 1,196,062 11,907,039 8,914,007 Total Liabilities, Deferred Inflows of Resources, and Fund Balance $ 7,048,119 $ 6,235,219 $ 1,215,878 $ 14,499,216 $ 11,338,178 Governmental Funds Town of Monument, Colorado Balance Sheet December 31, 2021 With Comparative Totals for December 31, 2020 General ASD Fund 2A Water Funds Governmental Other 2020 Total 2021 See Notes to the Financial Statements. 6 ---PAGE BREAK--- Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Total Fund Balance of Governmental Funds $ 11,907,039 Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in governmental funds. 9,088,803 Long-term liabilities and related items are not due and payable in the current year and, therefore, are not reported in governmental funds. Capital leases payable (323,969) Accrued interest payable (2,727) Accrued compensated absences (280,013) Total Net Position of Governmental Activities $ 20,389,133 Town of Monument, Colorado Reconciliation of Balance Sheet of the Governmental Funds December 31, 2021 to the Statement of Net Position See Notes to the Financial Statements. 7 ---PAGE BREAK--- Revenues Taxes $ 7,164,039 $ 2,019,601 $ 925,516 $ 10,109,156 $ 8,427,039 Licenses and Permits 124,613 - 90,877 215,490 156,790 Charges for Services 235,275 - 324,748 560,023 279,250 Intergovernmental 1,163,554 - 411,880 1,575,434 1,081,424 Court 32,048 - - 32,048 25,103 Investment Income 3,960 1,539 102 5,601 30,296 Contributions and donations 3,904 - - 3,904 17,861 Miscellaneous 29,961 - 6,100 36,061 31,134 Total Revenues 8,757,354 2,021,140 1,759,223 12,537,717 10,048,897 Expenditures Current General Government 2,530,560 - 168,495 2,699,055 2,505,274 Public Safety 2,731,577 - - 2,731,577 2,380,189 Public Works 980,346 62,345 349,278 1,391,969 938,442 Parks and Recreation 879,175 - 34,786 913,961 727,275 Capital Outlay - 1,381,628 523,703 1,905,331 528,312 Debt Service Principal 199,038 - - 199,038 148,748 Interest and Fiscal Charges 7,419 - - 7,419 12,185 Total Expenditures 7,328,115 1,443,973 1,076,262 9,848,350 7,240,425 Excess Revenues Over (Under) Expenditures 1,429,239 577,167 682,961 2,689,367 2,808,472 Other Financing Sources (Uses) Proceeds from Issuance of Debt 265,000 - - 265,000 - Transfers In 501,758 - 110,000 611,758 680,901 Transfers Out (110,000) (443,093) (20,000) (573,093) (87,016) Other Financing Sources (Uses) 656,758 (443,093) 90,000 303,665 593,885 Net Change in Fund Balance 2,085,997 134,074 772,961 2,993,032 3,402,357 Fund Balance, Beginning of year 2,411,271 6,079,635 423,101 8,914,007 5,511,650 Fund Balance, End of year $ 4,497,268 $ 6,213,709 $ 1,196,062 $ 11,907,039 $ 8,914,007 General Fund ASD Town of Monument, Colorado Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds For the Year Ended December 31, 2021 With Comparative Totals for the Year Ended December 31, 2020 2A Water Other Governmental Funds 2020 Total 2021 See Notes to the Financial Statements. 8 ---PAGE BREAK--- Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Change in Fund Balance of Governmental Funds $ 2,993,032 Capital outlays to purchase or construct capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are capitalized in the statement of net position and are allocated over their estimated useful lives as annual depreciation expense in the statement of activities. Capital Outlays 340,716 Depreciation Expense (1,056,808) Repayments of long-term liabilities are expenditures in governmental funds, but they reduce long-term liabilities in the statement of net position and do not affect the statement of activities. Change in Interest payable (238) Principal payments on capital leases (65,962) Change in accrued compensated absences 92,380 Change in Net Position of Governmental Activities $ 2,303,120 Town of Monument, Colorado Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2021 See Notes to the Financial Statements. 9 ---PAGE BREAK--- Assets Current Assets Cash and Investments $ 21,744,210 $ 24,010,921 Restricted Cash and investments 677,619 677,293 Accounts Receivable 238,552 173,701 Prepaid Tap Fees - Water Line Loop - - Total Current Assets 22,660,381 24,861,915 Noncurrent Assets Capital Assets, not being depreciated 8,917,003 3,984,968 Capital Assets, net of accumulated depreciation 4,781,855 5,038,820 Total Noncurrent Assets 13,698,858 9,023,788 Total Assets 36,359,239 33,885,703 Liabilities Current Liabilities Accounts Payable 561,345 183,394 Accrued Liabilities 40,998 17,529 Accrued Compensated Absences, Current portion 6,470 6,101 Accrued Interest Payable 78,914 112,426 Certificates of Participation, Current Portion 665,764 600,556 Total Current Liabilities 1,353,491 920,006 Noncurrent Liabilities Deposits 13,100 9,200 Accrued Compensated Absences 58,233 54,909 Leases payable 21,158,021 21,823,785 Total Noncurrent Liabilities 21,229,354 21,887,894 Total Liabilities 22,582,845 22,807,900 Net Position Net Investment in Capital Assets 10,122,872 8,600,491 Restricted for Future Water Storage 677,619 677,293 Restricted for Water Line Loop - Unrestricted 2,975,903 1,800,019 Total Net Position $ 13,776,394 $ 11,077,803 Town of Monument, Colorado Statement of Net Position Proprietary Fund December 31, 2021 2020 2021 With Comparative Totals for December 31, 2020 See Notes to the Financial Statements. 10 ---PAGE BREAK--- Operating Revenues Charges for Services $ 2,565,904 $ 2,000,571 Miscellaneous 70,615 31,108 Total Operating Revenues 2,636,519 2,031,679 Operating Expenses Operations and Maintenance 1,310,501 1,145,726 Administrative and General 113,046 111,224 Depreciation 447,885 435,058 Total Operating Expenses 1,871,432 1,692,008 Net Operating Income 765,087 339,671 Non-Operating Revenues (Expenses) Sales taxes 455,438 294,959 Grant Revenue - 201 Interest Income 12,031 9,369 Interest Expense (640,824) (87,564) Gain on Sale of Assets 5,564 - Bond Issuance Costs - (449,620) Net Income (Loss) Before Contributed Capital 597,296 107,016 Contributed Capital and Transfers Tap Fees 2,139,960 1,063,580 Transfers In 443,093 - Transfers Out (481,758) (593,885) Total Capital Contributions and Transfers 2,101,295 469,695 Change in Net Position 2,698,591 576,711 Net Position, Beginning of year 11,077,803 10,501,092 Net Position, End of year $ 13,776,394 $ 11,077,803 2020 2021 With Comparative Totals for the Year Ended December 31, 2020 Town of Monument, Colorado Statement of Revenues, Expenses and Changes in Net Position Proprietary Fund For the Year Ended December 31, 2021 See Notes to the Financial Statements. 11 ---PAGE BREAK--- Cash Flows From Operating Activities Cash Received from Customers $ 2,501,053 $ 1,967,675 Cash Received from Others 70,615 31,108 Cash Paid to Suppliers (382,713) (65,646) Cash Paid to Employees (635,721) (591,626) Net Cash Provided by Operating Activities 1,553,234 1,341,511 Cash Flows From Non-Capital Financing Activities Sales Tax Received 455,438 294,959 Grants Received - 201 Transfer from Other Funds 443,093 - Transfer to Other Funds (481,758) (593,885) Net Cash Provided by Noncapital Financing Activities 416,773 (298,725) Cash Flows From Capital and Related Financing Activities Tap fees received 2,139,960 1,063,580 Acquisition and Construction of Capital Assets (5,122,955) (1,087,368) Deposit Received from Customers 3,900 2,400 Proceeds from Sale of Assets 5,564 - Debt Principal Payments (600,556) 547,539 Debt Interest Payments (674,336) 24,028 Issuance of Certificates of Participation - 21,374,165 Net Cash Used by Capital and Related Financing Activities (4,248,423) 21,924,344 Cash Flows From Investing Activities Interest received 12,031 9,369 Net Cash Used by Capital and Related Financing Activities 12,031 9,369 Net Change in Cash and Cash Equivalents (2,266,385) 22,976,499 Cash and Cash Equivalents, Beginning of year 24,688,214 1,711,715 Cash and Cash Equivalents, End of year $ 22,421,829 $ 24,688,214 Reconciliation of Net Operating Income to Net Cash Provided by Operating Activities: Net Operating Income $ 765,087 $ 339,671 Adjustments to Reconcile Net Operating Income to Net Cash Provided by Operating Activities Depreciation Expense 447,885 435,058 Changes in Assets and Liabilities Related to Operations Accounts Receivable (64,851) (32,896) Prepaid Expenses - 471,110 Accounts Payable 377,951 124,914 Accrued Expenses 23,469 3,771 Accrued Compensated Absences 3,693 (117) Net Cash Provided by Operating Activities $ 1,553,234 $ 1,341,511 2020 2021 With Comparative Totals for December 31, 2020 Town of Monument, Colorado Statement of Cash Flows Proprietary Fund For the Year Ended December 31, 2021 See Notes to the Financial Statements. 12 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 13 Note 1: Summary of Significant Accounting Policies The accounting policies of the Town of Monument, Colorado (the Town) conform to generally accepted accounting principles as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant policies. Reporting Entity In accordance with governmental accounting standards, the Town has considered the possibility of inclusion of additional entities in its basic financial statements. The definition of the reporting entity is based primarily on financial accountability. The Town is financially accountable for organizations that make up its legal entity. It is also financially accountable for legally separate organizations if the Town officials appoint a voting majority of the organization’s governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. The Town may also be financially accountable for governmental organizations that are fiscally dependent upon it. Based on the application of these criteria, the Town does not include additional organizations in its reporting entity. Government-wide and Fund Financial Statements The government-wide financial statements the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Town. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of net position reports all financial, capital and debt resources of the Town. The difference between assets, liabilities and deferred inflows of the Town is net position. The statement of activities demonstrates the degree to which the direct expenses of the given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds are reported as separate columns in the fund financial statements. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 14 Note 1: Summary of Significant Accounting Policies (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Property taxes, specific ownership taxes, grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Town. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for enterprise funds 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 nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Town’s practice to use restricted resources first, then unrestricted resources as they are needed. In the fund financial statements, the Town reports the following major governmental funds: The General Fund is the Town’s primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. The 2A Water ASD Fund accounts for the revenues and expenditures allocated for water projects. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 15 Note 1: Summary of Significant Accounting Policies (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The Town also reports the following major proprietary fund: The Water Fund accounts for the financial activities associated with the provision of water services. Cash and Investments Cash equivalents include investments with original maturities of three months or less. Investments are recorded at fair value. Capital Assets Capital assets, which include property and equipment, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Property and equipment of the Town is depreciated using the straight-line method over the following estimated useful lives: Water Rights 50 years Wells and Treatment Plant 30 years Infrastructure 30 years Transmission & Distribution 10 years Buildings 5 – 30 years Furniture, Equipment and Vehicles 3 – 10 years Park and Street Improvements 7 – 20 years Compensated Absences Employees of the Town are allowed to accumulate unused vacation time. Upon termination of employment from the Town, an employee will be compensated for all accrued vacation at a maximum amount ranging from 96 hours to 360 hours, based on length of service at their current rate of pay. Unused sick time will be compensated at a maximum of 120 hours of their current rate of pay. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 16 Note 1: Summary of Significant Accounting Policies (Continued) Compensated Absences (Continued) These compensated absences are recognized as current salary costs when earned in the proprietary fund types and when due in the governmental fund types. A liability has been recorded in the government-wide financial statements for the accrued compensated absences. Long-Term Obligations In the government-wide financial statements, and proprietary fund type in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Net Position The government-wide and business-type fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted, and unrestricted. Net investment in capital assets is intended to reflect the portion of net position, which is associated with non-liquid, capital assets less outstanding capital asset related debt. The net related debt is the debt less the outstanding liquid assets and any associated unamortized cost. Restricted net position is liquid assets, which have third party limitations on their use. Unrestricted net position represents assets that do not have any third-party limitations on their use. Fund Balance Classification The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 17 Note 1: Summary of Significant Accounting Policies (Continued) Fund Balance Classification (Continued) The classifications used in the governmental fund financial statements are as follows: Restricted - This classification includes amounts for which constraints have been placed on the use of the resources either externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. The Town has classified Emergency Reserves as being restricted because their use is restricted by State Statute for declared emergencies. In addition, the Town has classified the fund balance in the Conservation Trust Fund as restricted because their use is restricted by State Statute. Committed - This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Trustees. These amounts cannot be used for any other purpose unless the Board of Trustees removes or changes the specified use by taking the same type of action (ordinance or resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. The Town’s committed resources are presented in the governmental fund balance sheet as of December 31, 2021. Unassigned - This classification includes the residual fund balance for the General Fund. The Unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of Assigned fund balance amounts. The Town would typically use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned. Property Taxes Property taxes are levied on November 1 and attach as an enforceable lien on property on January 1. Taxes are payable in full on April 30 or in two installments on February 28 and June 15. The County Treasurer’s office collects property taxes and remits to the Town on a basis. Since property tax revenues are collected in arrears during the succeeding year, a receivable and corresponding deferred revenue are recorded at December 31. As the tax is collected in the succeeding year, the deferred revenue is recognized as revenue and the receivable is reduced. ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 18 Note 1: Summary of Significant Accounting Policies (Continued) Subsequent Events The Town has evaluated subsequent events through June 24, 2022, the date the financial statements were available to be issued. Note 2: Stewardship, Compliance and Accountability Budgets and Budgetary Accounting The Town follows these procedures in establishing the budgetary data reflected in the financial statements:  In October, the Town staff submits to the Town Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them.  Public hearings are conducted to obtain taxpayer comments.  Prior to December 15, the budget is legally enacted through passage of an ordinance.  The Town Administration is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the Town Council.  Budgets are legally adopted for all funds of the Town. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). The Budgetary comparison presented for the Enterprise Fund is presented on a non-GAAP budgetary basis. Capital outlay and debt payments are budgeted as expenditures and depreciation is not budgeted.  Budgeted amounts in the financial statements are as originally adopted or as amended by the Town Council. All appropriations lapse at year end. Colorado governments may not exceed budgeted appropriations at the fund level. Note 3: Cash and Investments A summary of deposits and investments as of December 31, 2021 follows: Petty Cash $ 1,350 Cash Deposits 7,241,900 Investments 26,286,082 Total $ 33,529,332 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 19 Note 3: Cash and Investments (Continued) At December 31, 2021, cash and investments consisted of the following: The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by State regulations. Amounts on deposit in excess of Federal Deposit Insurance Corporation (FDIC) levels must be collateralized by eligible collateral as determined by the PDPA. The FDIC insures depositors’ accounts up to $250,000 for each financial institution. The PDPA allows the financial institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2021, the Town had deposits with financial institutions with a carrying amount of $7,241,901. The bank balances with the financial institutions totaling $7,859,429 of which $250,000 were covered by the FDIC and $7,609,429 were collateralized with securities held by the financial institution’s agent but not in the Town’s name. Investments The Town does not have a formal investment policy; however, the Town follows state statutes regarding investments. The Town generally limits its concentration risk of investments to Local Government Investment Pools, obligations of the United States and certain U.S. government agency securities, which are believed to have minimal credit risk, minimal interest rate risk and no foreign currency risk. Additionally, the Town is not subject to concentration of risk for investments that are in the possession of another party. Colorado revised statutes limit investment maturities to five years or less unless formally approved by the Board of Trustees. Such actions are generally associated with a debt service reserve or sinking fund requirements. State statutes specify investment instruments meeting defined rating, maturity, and concentration risk criteria in which local governments may invest, which include the following.  Obligations of the United States & certain U.S. government agency securities  Certain international agency securities  General obligation and revenue bonds of U.S. local government entities  Commercial paper  Local government investment pools  Written repurchase agreements collateralized by certain authorized securities  Certain money market funds  Guaranteed investment contracts Cash and Investments $ 32,808,636 Restricted Cash and Investments 720,696 Total $ 33,529,332 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 20 Note 3: Cash and Investments (Continued) Investments (Continued) At December 31, 2020, the Town had the following investments: The Town invested in the Colorado Local Government Liquid Asset Trust (ColoTrust) (the Trust), an investment vehicle established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces all State statutes governing the Trust. The Trust operates similarly to a money market fund and each share is equal in value to $1.00. The Trust offers shares in two portfolios, ColoTrust PRIME and ColoTrust PLUS+. Both portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities. ColoTrust PLUS+ may also invest in certain obligations of U.S. government agencies, highest rates commercial paper and any security allowed under CRS 24- 75-601. A designated custodial bank serves as custodian for the Trust’s investment portfolios and provides services as the depository in connection with direct investments and withdrawals. The custodian’s internal records segregate investments owned by the Trust. ColoTrust is rated AAAm by Standard & Poor’s. ColoTrust records its investments at fair value and the Town records its investment in ColoTrust using the net asset value method. There are no unfunded commitments, the redemption frequency is daily and there is no redemption notice period. Interest Rate Risk - State statutes generally limit investments to an original maturity of five years unless the governing board authorizes the investment for a period in excess of five years. The Town does not have a policy for managing credit risk or interest rate risk. Future Water Storage - The Town has restricted $677,619 of the Water Fund’s cash balance for future water storage in relation to an intergovernmental agreement. The Town also restricted net position for future water storage in relation to this agreement. Parks and Recreation - The Town has restricted cash of $43,077 in the Conservation Trust Fund for future parks and recreation expenditures. Maturity Colorado Liquid Government Weighted Average Asset Trust (ColoTrust) under 60 days $ 7,717,756 Asset Trust (Colo Trust Plus) 15 Years 18,247,799 Certificates of Deposits One year or less 320,527 $ 26,286,082 2020 Restricted Cash Cash is restricted for the following purposes: Future Water Storage – Water Fund $ 677,619 Parks and Recreation – Conservation Trust Fund 43,077 Total $ 720,696 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 21 Note 4: Interfund Transfers Interfund transfers for the year ended December 31, 2021, consisted of the following: During the year ended December 31, 2021, the Water Fund transferred amounts to the General Fund for administrative costs and fees. Note 5: Capital Assets Capital assets activity for the year ended December 31, 2021 is summarized below: Governmental Activities Capital Assets, Not Being Depreciated Land $ 1,767,122 $ - $ - $ 1,767,122 Construction in Progress 185,622 9,000 - 194,622 Total Capital Assets, Not Being Depreciated 1,952,744 9,000 - 1,961,744 Capital Assets, Being Depreciated Buildings 3,945,216 - - 3,945,216 Infrastructure 8,367,154 - - 8,367,154 Water Rights 135,324 - - 135,324 Furniture and Equipment 689,443 - (18,310) 671,133 Vehicles and Street Equipment 1,661,389 331,716 (113,563) 1,879,542 Park Improvements 666,382 - - 666,382 Street Improvements 6,244,409 - - 6,244,409 Total Capital Assets, Being Depreciated $ 21,709,317 $ 331,716 $ (131,873) $ 21,909,160 Less Accumulated Depreciation Buildings $ (1,722,123) $ (128,347) $ - $ (1,850,470) Infrastructure (5,757,496) (276,265) - (6,033,761) Water Rights (31,870) (2,706) - (34,576) Furniture and Equipment (519,984) (50,954) 18,310 (552,628) Vehicles and Street Equipment (1,181,771) (153,007) 113,563 (1,221,215) Park Improvements (463,141) (34,875) - (498,016) Street Improvements (4,180,781) (410,654) - (4,591,435) Total Accumulated Depreciation (13,857,166) (1,056,808) 131,873 (14,782,101) Total Capital Assets, Being Depreciated, net 7,852,151 (725,092) - 7,127,059 Governmental Activities Capital Assets, net $ 9,804,895 $ (716,092) $ - $ 9,088,803 Balance Balance 12/31/20 Additions Deletions 12/31/21 General Fund Water $ 481,758 General Fund Conservation Trust Fund 20,000 Community Development Fund General Fund 110,000 Total $ 611,758 Transfers In Transfers Out Amount ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 22 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the Town as follows: Capital assets Business-Type activity for the year ended December 31, 2021 is summarized below: Governmental Activities General Government $ 156,346 Public Safety 70,285 Public Works 782,231 Parks and Recreation 47,946 Total $ 1,056,808 Business-Type Activities Capital Assets, Not Being Depreciated Water Master Plan $ 664,971 $ - $ - $ 664,971 Construction in Progress 361,640 4,970,955 (38,920) 5,293,675 Monument Dam 2,958,357 - - 2,958,357 Total Capital Assets, Not Being Depreciated 3,984,968 4,970,955 (38,920) 8,917,003 Capital Assets, Being Depreciated Water Rights 125,000 - - 125,000 Alluvium Wells 420,392 - - 420,392 Public Works Building 126,382 - - 126,382 Iron Treatment Plant 287,854 - - 287,854 Water Treatment Plant 1,199,322 - - 1,199,322 Other Equipment 1,355,357 38,920 - 1,394,277 Slabaugh Well 191,390 - - 191,390 Wells/Treatment 9,209,823 - - 9,209,823 Transmission & Distribution 2,731,482 - - 2,731,482 Equipment and Vehicles 377,384 152,000 (70,622) 458,762 Total Capital Assets, Being Depreciated 16,024,386 190,920 (70,622) 16,144,684 Total Capital Assets 20,009,354 5,161,875 (109,542) 25,061,687 Less: Accumulated depreciation Water Rights (67,500) (2,500) - (70,000) Alluvium Wells (405,651) (2,456) - (408,107) Public Works Building (58,439) (5,052) - (63,491) Iron Treatment Plant (287,854) - - (287,854) Water Treatment Plant (586,857) (39,977) - (626,834) Other Equipment (955,722) (82,255) - (1,037,977) Slabaugh Well (109,096) (3,828) - (112,924) Wells/Treatment (6,311,370) (195,702) - (6,507,072) Transmission & Distribution (1,903,462) (81,158) - (1,984,620) Equipment and Vehicles (299,615) (34,957) 70,622 (263,950) (10,985,566) (447,885) 70,622 (11,362,829) Business-Type Activities Capital Assets, net $ 9,023,788 $ 4,713,990 $ (38,920) $ 13,698,858 Balance Balance 12/31/20 Additions Deletions 12/31/21 ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 23 Note 6: Long-Term Debt Governmental Activities Following is a summary of long-term debt transactions for the governmental activities for the year ended December 31, 2021. Accrued Compensated Absences are being paid from resources generated by the General Fund. Capital Leases The Town has entered into several capital lease agreements to purchase vehicles and equipment which will be paid from revenues of the General Fund. These leases require interest to be paid ranging from 2.36% to 3.54%. These leases mature from 2020 - 2024. Following is a schedule of the future minimum lease payments required under the outstanding capital lease obligations at December 31, 2020: Business-Type Activities Following is a summary of long-term debt transactions for the business-type activities for the year ended December 31, 2021. Governmental Activities Capital leases $ 258,007 $ - $ (65,962) $ 323,969 $ 114,409 Compensated Absences 372,393 334,277 (426,657) 280,013 28,001 Total $ 630,400 $ 334,277 $ (492,619) $ 603,982 $ 142,410 Due Within 12/31/20 Additions Deletions 12/31/21 One Year Balance Balance Year Ended December 31, 2021 $ 150,066 2022 67,595 2023 34,812 2024 17,406 Total Future Minimum Lease Payments 269,879 Less: Interest 54,090 Present Value of Future Minimum Lease Payments $ 323,969 Total Business-Type Activities Capital leases $ - $ - $ - $ - $ - Certificates of Participation 19,840,000 - (435,000) 19,405,000 495,000 Premium 2,584,341 - (165,556) 2,418,785 170,764 Compensated Absences 61,010 47,618 (43,925) 64,703 6,470 Total $ 22,485,351 $ 47,618 $ (644,481) $ 21,888,488 $ 672,234 One Year Balance Balance Due Within 12/31/20 Additions 12/31/21 Deletions ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 24 Note 6: Long-Term Debt (Continued) Business-Type Activities (Continued) In November 2020, the Town entered into an annually-renewable lease purchase agreement with BOKF NA for the purpose of financing the acquisition, construction and installation of water improvements. Certificates of Participation were sold to investors, with the net proceeds of $19,840,000. While the lease does not constitute an indebtedness of the Town for state law purposes because it is subject to annual appropriation, it is treated as a capital lease for financial reporting purposes pursuant to generally accepted accounting principles applicable to governmental units. Payments of the principal component are due annually on December 1, through 2045. The interest component accrues at 4.0% and is payable semiannually on June 1st and December 1st. The following schedule represents the Town’s debt service requirements to maturity for the outstanding participation debt at December 31, 2021. Note 7: Retirement Commitments Deferred Compensation Plan The Town offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is available to all Town employees and permits them to defer a portion of their salary until future years. The Town matches employee contributions up to 5% of eligible salary. During the year ended December 31, 2021, the Town contributions were $132,825 equal to the required contribution. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Year Ended December 31, 2022 $ 495,000 776,200 $ 1,271,200 2023 515,000 756,400 1,271,400 2024 535,000 735,800 1,270,800 2025 560,000 714,400 1,274,400 2026 580,000 692,000 1,272,000 2027 - 2031 3,275,000 3,092,000 6,367,000 2032 - 2036 3,980,000 2,383,000 6,363,000 2037 - 2041 4,845,000 1,520,400 6,365,400 2042 - 2046 4,620,000 471,000 5,091,000 $ 19,405,000 $ 11,141,200 $ 30,546,200 Principle Interest Total ---PAGE BREAK--- Town of Monument, Colorado Notes to Financial Statements December 31, 2021 25 Note 8: Public Entity Risk Pool The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. For these risks of loss, the Town is involved with the Colorado Intergovernmental Risk Sharing Agency (CIRSA), a separate and independent governmental and legal entity formed by intergovernmental agreement by member municipalities pursuant to the provision of 24-10-115.5, Colorado Revised Statutes (1982 Replacement Volume) and Colorado Constitution, Article XIV, Section 18(2). The purposes of CIRSA are to provide members defined liability, property, and workers compensation coverages and to assist members in preventing and reducing losses and injuries to municipal property and to persons or property which might result in claims being made against members of CIRSA, their employees and officers. It is the intent of the members of CIRSA to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnify, in accordance with the bylaws, any member of CIRSA against stated liability of loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. All income and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. CIRSA is a separate legal entity, and the Town does not approve budgets, nor does it have the ability to significantly affect the operations of entity. Note 9: Commitments and Contingencies Litigation The Town is not involved in any pending and threatened litigation as of December 31, 2021. TABOR Amendment Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local government. In November 1996, voters within the Town approved the collection, retention, and expenditure of the all revenues generated by the Town in 1996 and subsequent years through 2019, notwithstanding the provisions of the Amendment. No such election took place during 2020 to continue this provision, but revenues for 2020 remained in compliance with TABOR limitations. The Town has established an emergency reserve, representing 3% of qualifying expenditures, as required by the Amendment. At December 31, 2021, the emergency reserve of $173,626 was recorded in the General Fund. ---PAGE BREAK--- Required Supplementary Information ---PAGE BREAK--- 2020 Actual Revenues Taxes $ 5,474,087 $ 5,474,087 $ 7,164,039 $ 1,689,952 $ 5,946,786 Licenses and Permits 54,160 54,160 124,613 70,453 70,323 Charges for Services 130,800 130,800 235,275 104,475 170,335 Intergovernmental 477,003 1,494,592 1,163,554 (331,038) 442,573 Court 35,000 35,000 32,048 (2,952) 74,015 Interest 18,309 18,309 3,960 (14,349) 22,890 Contributions and Donations - - 3,904 3,904 12,958 Miscellaneous - - 29,961 29,961 27,144 Total Revenues 6,189,359 7,206,948 8,757,354 1,550,406 6,767,024 Expenditures Current General Government 2,500,680 2,580,380 2,530,560 49,820 2,629,332 Public Safety 2,553,642 2,622,851 2,731,577 (108,726) 2,331,642 Public Works 1,821,864 1,821,864 1,859,521 (37,657) 1,521,046 Capital Outlay 403,000 403,000 - 403,000 481,457 Debt Service Principal 199,647 199,647 199,038 609 101,415 Interest 8,419 8,419 7,419 1,000 9,329 Total Expenditures 7,487,252 7,636,161 7,328,115 308,046 7,074,221 Excess Revenues Over (Under) Expenditures (1,297,893) (429,213) 1,429,239 1,858,452 (307,197) Other Financing Sources (Uses) Proceeds from Issuance of Debt 265,000 265,000 265,000 - 345,794 Transfers In 20,000 20,000 501,758 481,758 284,250 Transfers Out - - (110,000) (110,000) (67,016) Net Change in Fund Balance (1,012,893) (144,213) 2,085,997 2,230,210 255,831 Fund Balance, Beginning of year 2,411,271 2,411,271 2,411,271 - 705,552 Fund Balance, End of year $ 1,398,378 $ 2,267,058 $ 4,497,268 $ 2,230,210 $ 961,383 (Negative) Positive Actual Final Budget Original Budget Variance Town of Monument, Colorado Budgetary Comparison Schedule General Fund For the Year Ended December 31, 2021 With Comparative Actual Totals for the Year Ended December 31, 2020 See Accompanying Independent Auditor's Report. 26 ---PAGE BREAK--- Revenues Sales Taxes $ 1,376,300 $ 1,376,300 $ 2,019,601 $ 643,301 $ 1,571,744 Interest 35,000 35,000 1,539 (33,461) 52,769 Total Revenues 1,411,300 1,411,300 2,021,140 609,840 1,624,513 Expenditures Public Works 211,000 211,000 62,345 148,655 171,650 Capital Outlay - 1,400,000 1,381,628 18,372 - Total Expenditures 211,000 1,611,000 1,443,973 167,027 171,650 Net Change in Fund Balance 1,200,300 (199,700) 577,167 776,867 1,452,863 Transfers Out (1,274,893) (1,274,898) (443,093) 831,805 - Fund Balance, Beginning of year 6,079,635 6,079,635 6,079,635 - 2,897,618 Fund Balance, End of year $ 6,005,042 $ 4,605,037 $ 6,213,709 $ 1,608,672 $ 4,350,481 Actual Variance Positive Town of Monument, Colorado Budgetary Comparison Schedule 2A Water ASD Fund For the Year Ended December 31, 2021 With Comparative Actual Totals for the Year Ended December 31, 2020 Original 2020 Budget Budget Actual (Negative) Final See Accompanying Independent Auditor's Report. 27 ---PAGE BREAK--- Town of Monument, Colorado Notes to Required Supplementary Information December 31, 2021 28 Note 1: Stewardship, Compliance, and Accountability Budgets Budgets are legally adopted for all funds of the Town. Budgets for the governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgetary comparisons for the proprietary fund are presented on a non-GAAP budgetary basis, whereby capital outlay and debt principal are budgeted as expenditures. The Town follows these procedures to establish the budgetary information reflected in the financial statements:  Management submits to the Town Board a proposed budget for the fiscal year commencing the following January 1. The budget includes proposed expenditures and the means of financing them.  Public hearings are conducted to obtain taxpayer comments.  Prior to December 31, the budget is legally enacted through passage of a resolution.  Management is authorized to transfer budgeted amounts between departments within any fund. However, any revisions that alter the total expenditures of any fund must be approved by the Town Board.  All appropriations lapse at year end. ---PAGE BREAK--- Supplementary Information ---PAGE BREAK--- Assets Cash and Investments $ 625,824 $ 97,302 $ - $ 176,956 $ 169,471 $ 103,248 $ 1,172,801 $ 401,802 Restricted Cash and Investments - - 43,077 - - - 43,077 35,885 Total Assets $ 625,824 $ 97,302 $ 43,077 $ 176,956 $ 169,471 $ 103,248 $ 1,215,878 $ 437,687 Liabilities Accounts Payable - 17,796 63 1,853 104 - 19,816 14,586 Total Liabilities - 17,796 63 1,853 104 - 19,816 14,586 Fund Balance Restricted for Parks and Recreation - - 43,014 - - 103,248 146,262 33,845 Committed 625,824 79,506 - 175,103 169,367 - 1,049,800 389,256 Total Fund Balance 625,824 79,506 43,014 175,103 169,367 103,248 1,196,062 423,101 Total Liabilities and Fund Balance $ 625,824 $ 97,302 $ 43,077 $ 176,956 $ 169,471 $ 103,248 $ 1,215,878 $ 437,687 Town of Monument, Colorado Combining Balance Sheet Nonmajor Governmental Funds December 31, 2021 With Comparative Totals for the Year Ended December 31, 2020 2020 Total 2021 Fund Fund Fund Trust Conservation Traffic Park Fee Impact Fee Storm Capital Improvement Fund Special Revenue Funds Fund Community Development Drainage Impact Fee Fund See Accompanying Independent Auditor's Report. 29 ---PAGE BREAK--- Revenues Taxes $ 925,516 $ - $ - $ - $ - $ - $ 925,516 $ 468,646 Licenses and Permits - 90,877 - - - - 90,877 76,625 Intergovernmental 347,934 - 63,946 - - - 411,880 332,757 Charges for Services - - - 87,938 133,562 103,248 324,748 91,742 Investment Income 23 14 9 44 12 - 102 838 Miscellaneous - 6,100 - - - - 6,100 4,000 - - - Total Revenues 1,273,473 96,991 63,955 87,982 133,574 103,248 1,759,223 974,608 Expenditures General Government - 168,495 - - - - 168,495 128,907 Parks and Recreation - - 34,786 - - - 34,786 24,022 Public Works 349,278 - - - - - 349,278 50,052 Capital Outlay 471,045 - - 42,015 10,643 - 523,703 528,312 Total Expenditures 820,323 168,495 34,786 42,015 10,643 - 1,076,262 731,293 Excess Revenues Over (Under) Expenditures 453,150 (71,504) 29,169 45,967 122,931 103,248 682,961 243,315 Other Financing Sources (Uses) Transfers In - 110,000 - - - - 110,000 67,016 Transfers Out - - (20,000) - - - (20,000) (20,000) Net Change in Fund Balance 453,150 38,496 9,169 45,967 122,931 103,248 772,961 290,331 Fund Balance, Beginning of year 172,674 41,010 33,845 129,136 46,436 - 423,101 132,770 Fund Balance, End of year $ 625,824 $ 79,506 $ 43,014 $ 175,103 $ 169,367 $ 103,248 $ 1,196,062 $ 423,101 44,196 Total 44,561 Development Fund Trust Fund Impact Fee Impact Fee Fund Fund Town of Monument, Colorado Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended December 31, 2021 Special Revenue Funds Storm Park Fee Fund Capital Improvement Fund Community Conservation Traffic Drainage See Accompanying Independent Auditor's Report. 30 ---PAGE BREAK--- Revenues Intergovernmental $ - $ - $ - $ - $ - Business Licenses 71,000 71,000 90,877 19,877 73,695 Interest 400 400 14 (386) 492 Miscellaneous 6,000 6,000 6,100 100 7,000 Total Revenues 77,400 77,400 96,991 19,591 81,187 Expenditures General Government 206,864 206,864 168,495 38,369 80,932 Total Expenditures 206,864 206,864 168,495 38,369 80,932 Other Financing Sources (Uses) Transfers In 110,000 110,000 110,000 - - Net Change in Fund Balance (19,464) (19,464) 38,496 57,960 255 Fund Balance, Beginning of year 41,010 41,010 41,010 - 15,531 Fund Balance, End of year $ 21,546 $ 21,546 $ 79,506 $ 57,960 $ 15,786 2020 Actual Original Budget Town of Monument, Colorado Budgetary Comparison Schedule Community Development Fund For the Year Ended December 31, 2021 With Comparative Totals for the Year Ended December 31, 2020 2021 Final Budget Variance Actual (Negative) Positive See Accompanying Independent Auditor's Report. 31 ---PAGE BREAK--- Revenues Lottery Revenues $ 48,000 $ 63,946 $ 15,946 $ 50,607 Interest 100 9 (91) 208 Total Revenues 48,100 63,955 15,855 50,815 Expenditures Park and Recreation 35,000 34,786 214 31,350 Total Expenditures 35,000 34,786 214 31,350 Other Financing Source (Uses) Transfers Out (20,000) (20,000) - - Net Change in Fund Balance (6,900) 9,169 16,069 19,465 Fund Balance, Beginning of year 33,845 33,845 - 8,130 Fund Balance, End of year $ 26,945 $ 43,014 $ 16,069 $ 27,595 2020 Actual 2021 Final Budget Actual (Negative) Variance Original and Positive Town of Monument, Colorado Budgetary Comparison Schedule Conservation Trust Fund For the Year Ended December 31, 2021 With Comparative Totals for the Year Ended December 31, 2020 See Accompanying Independent Auditor's Report. 32 ---PAGE BREAK--- Actual Revenues Traffic Impact Fees $ 49,490 $ 87,938 $ 38,448 $ 39,119 Interest 1,200 44 (1,156) 1,644 Total Revenues 50,690 87,982 37,292 40,763 Expenditures Capital Outlay 73,000 42,015 30,985 34,909 Total Expenditures 73,000 42,015 30,985 34,909 Net Change in Fund Balance (22,310) 45,967 68,277 5,854 Fund Balance, Beginning of year 129,137 129,136 69,723 Fund Balance, End of year $ 106,827 $ 175,103 $ 68,276 $ 75,577 2021 2020 Final Budget Actual (Negative) Variance Original and Positive Budgetary Comparison Schedule Traffic Impact Fee Fund For the Year Ended December 31, 2021 With Comparative Totals for the Year Ended December 31, 2020 Town of Monument, Colorado See Accompanying Independent Auditor's Report. 33 ---PAGE BREAK--- Actual Revenues Storm Drainage Impact Fees $ 60,000 $ 60,000 $ 133,562 $ 73,562 $ 40,659 Interest 250 250 12 (238) 286 Total Revenues 60,250 60,250 133,574 73,324 40,945 Expenditures Capital Outlay 60,000 60,000 10,643 49,357 39,828 Total Expenditures 60,000 60,000 10,643 49,357 39,828 Net Change in Fund Balance 250 250 122,931 122,681 1,117 Fund Balance, Beginning of year 46,736 46,436 46,436 - 12,695 Fund Balance, End of year $ 46,986 $ 46,686 $ 169,367 $ 122,681 $ 13,812 Town of Monument, Colorado Budgetary Comparison Schedule Storm Drainage Impact Fee For the Year Ended December 31, 2021 With Comparative Totals for the Year Ended December 31, 2020 Positive 2021 2020 Original Budget Budget Actual (Negative) Variance Final See Accompanying Independent Auditor's Report. 34 ---PAGE BREAK--- Revenues Taxes $ 412,917 $ 412,917 $ 925,516 $ 512,599 Intergovernmental 1,076,769 1,276,769 347,934 (928,835) Interest 2,000 2,000 23 (1,977) Total Revenues 1,491,686 1,691,686 1,273,473 (418,213) Expenditures Public Works - - 349,278 (349,278) Capital Outlay 1,555,575 1,755,575 471,045 1,284,530 Total Expenditures 1,555,575 1,755,575 820,323 935,252 Net Change in Fund Balance (63,889) (63,889) 453,150 517,039 Fund Balance, Beginning of year 172,674 172,674 172,674 - Fund Balance, End of year $ 108,785 $ 108,785 $ 625,824 $ 517,039 2021 Town of Monument, Colorado Budgetary Comparison Schedule Capital Projects Fund For the Year Ended December 31, 2021 Budget Budget Actual (Negative) Variance Original Final Positive See Accompanying Independent Auditor's Report. 35 ---PAGE BREAK--- 2020 Actual Revenues Charges For Services $ 2,150,318 $ 2,150,318 $ 2,565,904 $ 415,586 $ 2,000,571 Other Income - - 70,615 70,615 31,108 Total Revenue 2,150,318 2,150,318 2,636,519 486,201 2,031,679 Expenses Operations and Maintenance 1,259,061 1,259,061 1,310,501 (51,440) 1,145,726 Administration and General 678,930 678,930 113,046 565,884 111,224 Capital Outlay 10,120,000 5,255,000 5,122,955 132,045 1,087,368 Total Expenses 12,057,991 7,192,991 6,546,502 646,489 2,344,318 Net Operating Income (9,907,673) (5,042,673) (3,909,983) 1,132,690 (312,639) Nonoperating Revenues (Expenses) Sales taxes 291,903 291,903 455,438 163,535 294,959 Grant Revenue - - - - 201 Interest Income 20,000 20,000 12,031 (7,969) 9,369 Debt and Financing - - - (87,564) Debt Service (1,274,893) (1,274,893) (640,824) 634,069 571,567 Total Nonoperating Revenues (Expenses) (962,990) (962,990) (173,355) 789,635 788,532 Net Income (Loss) Before Contributed Capital (10,870,663) (6,005,663) (4,083,338) 1,922,325 475,893 Contributed Capital Tap Fees 1,148,000 1,148,000 2,139,960 991,960 1,063,580 Transfers In - - 443,093 443,093 - Transfers Out (668,745) (668,745) (481,758) 186,987 (593,885) Change in Net Position, Budgetary Basis $ (10,391,408) $ (5,526,408) $ (1,982,043) $ 3,544,365 $ 945,588 Reconciliation to GAAP Basis Capital Outlay 5,122,955 1,087,368 Gain on Sale of Assets 5,564 (547,539) Change in accrued interest - (111,592) Issuance of Certificates of Deposit - - Depreciation (447,885) (435,058) Change in Net Position, GAAP Basis $ 2,698,591 $ 938,767 Original Budget Town of Monument, Colorado Budgetary Comparison Schedule Water Fund For the Year Ended December 31, 2021 Final Budget Variance Positive Actual (Negative) With Comparative Totals for the Year Ended December, 31, 2020 See Accompanying Independent Auditor's Report. 36 ---PAGE BREAK--- Compliance Section ---PAGE BREAK--- State Compliance ---PAGE BREAK--- Form Approved The public report burden for this information collection is estimated to average 380 hours annually. OMB No. 2125-0032 City or County: YEAR ENDING : December 2021 This Information From The Records Of (example - City of _ or County of _ Prepared By: Phone: A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 564,992 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 18,306 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total a. Traffic control operations 917,510 2. General fund appropriations 633,387 b. Snow and ice removal 31,940 3. Other local imposts (from page 2) 1,309,430 c. Other 4. Miscellaneous local receipts (from page 2) 22,434 d. Total through 949,450 5. Transfers from toll facilities 4. General administration & miscellaneous 98,556 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 1,631,304 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total + b. + 0 a. Interest 7. Total (1 through 6) 1,965,251 b. Redemption B. Private Contributions c. Total + 0 C. Receipts from State government 2. Notes: (from page 2) 349,865 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) 1,017,589 c. Total + 0 E. Total receipts (A.7 + B + C + D) 3,332,706 3. Total (1.c + 2.c) 0 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 1,631,304 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 0 1. Bonds (Refunding Portion) B. Notes (Total) 0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 3,332,706 1,631,304 1,701,403 Notes and Comments: FORM FHWA-536 (Rev.06/2000) PREVIOUS EDITIONS OBSOLETE Excel (Next Page) 1 LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) ITEM AND STREET PURPOSES Highway Finance Report 2021 37 ---PAGE BREAK--- Denver Office: 750 W. Hampden Avenue Suite 400 Englewood, Colorado 80110 TEL: [PHONE REDACTED] FAX: [PHONE REDACTED] www.HinkleCPAs.com Office Locations: Colorado Springs, CO Denver, CO Tulsa, OK To the Mayor and Board of Trustees Town of Monument, Colorado Monument, Colorado We have audited the financial statements of the Town of Monument, Colorado (the Town) as of and for the year ended December 31, 2021 and have issued our report thereon dated June 24, 2022. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Generally Accepted Auditing Standards As communicated in our engagement letter dated January 31, 2022, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the Town’s internal control over financial reporting and compliance solely for the purpose of designing our audit procedures, but not for the purpose of expressing an opinion on the effectiveness of the internal control or on compliance. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. We applied certain limited procedures to the required supplementary information (RSI). However, we did not audit the RSI and do not express an opinion or provide any assurance on the RSI. With respect to the supplementary information accompanying the financial statements, we performed procedures to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing the information has not changed from the prior year, and the information is appropriate and complete in relation to our audit of the financial statements. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence. ---PAGE BREAK--- Mayor and Board of Trustees Town of Monument, Colorado Page 2 Significant Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. A summary of the significant accounting policies adopted by the Town is included in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year, except as discussed in the following paragraph. No matters have come to our attention that would require us, under professional standards, to inform you about the methods used to account for significant unusual transactions and the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. We evaluated the key factors and assumptions used to develop the significant estimates in determining that they are reasonable in relation to the financial statements as a whole. Corrected and Uncorrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. We proposed no uncorrected adjustments to the financial statements as a result of our audit procedures In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. We proposed no uncorrected adjustments to the financial statements as a result of our audit procedures. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit. ---PAGE BREAK--- Mayor and Board of Trustees Town of Monument, Colorado Page 3 Difficulties Encountered in Performing the Audit We encountered no difficulties dealing with management during the audit process. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated June 24, 2022. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a second opinion on certain situations. If a consultation involves the application of an accounting principle to the Town’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to contact us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Town’s auditors. However, these discussions occurred in the normal course of our professional relationship and the responses were not a condition to our retention. Conclusion This report is intended solely for the information and use of the Mayor, the Board of Trustees and management of the Town of Monument, Colorado and is not intended to be, and should not be, used by anyone other than these specified parties. Englewood, Colorado June 24, 2022