Audits - 1944-1946

AUDITOR'S REPORT

THE NORTH P OUDRE IRRIGATION CO. DECELIBER 31, 1946

MARCH 16, 1947

AUDITOR'S REPORT

THE NORTH POUDRE IRRIGATION CC:TA1;Y DECEMBER 31, 1946

To The Board of Directors

The North Poudre Irrigation Comany Fort Collins, Colorado

Gentlemen:

We have Examined the Balance Sheet of the North Poudre irrigation Company as of DeceLiber 31, 1946, and the statements of Income and Surplus for the calendar year then ended, have reviewed the system of internal control and the accounting procedures of the company and, -::ithout making a detailed audit of the transactions, have examined or tested accounting records of the com'cany and other

supporting evidence, by methods and to the extent we

deemed appropriate. Our examination was made in accordance with generally accepted auditing standards applicable in the circumstances and included all procedures which we considered necessary.

Cash in bank was reconciled with the amount con-firmed direct to us by the depositary, and Petty Cash was counted.

Investents in stock and ditch co=anies as

shown by company records were mamined by us and found to be

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in order. Stock in the Wichita Bank For Cooperatives was verified by direct confirmation by the bank as of December 31, 1946.

Records pertaining to capital stock issued and Fossil Creek Preferred Rights were examined by us and found to be correctly stated.

So far as ascertainable and so far as shown

by the books of the cor-irany, all assets and liabilities at December 31, 1946 are reflected in the accompanying Balance Sheet.

The disbursements during the year have been verified by examination of all cancelled checks returned by banks,

journal vouchers and receipted expense bills. The recorded receipts have been traced as deposits in the bank account.

We have satisfied ourselves that all income from assessments, water rents, preferred rights, royalties and leases have been properly accounted for.

On the above basis, in our opinion, the accompany-ing Balance Sheet and related statements of income and

Surplus present fairly the position of The North Poudre Irri-gation Company at December 31, 1946, and the results of its operations for the calendar year, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

Very truly yours, A. S. ROGERS & SOY

By

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BALANCE SHEET

Cash, $2.1 060.34

Cash on hand consists of a balance in the First National Bank of $7,643.13, Cash in till $1,407.17, and Petty Cash $10.00. The total receipts for the year were $84,507.00. The disbursements for the year amounted to $90,189.21, leaving a balance at the close of the year of $9,060.30.

Assessments Receiv_2121f_L_L,127.68:

There remains at the present time unpaid assess-ments for the year 1946 in the sum of $4,127.68. We con-sider this a very good showing.

Commissal-7 inventories2 $172.86:

It was not considered necessary for us to ::lake a

check of inventories on hand, and we have accepted the valuations in complete detail. These inventories are maintained at the

Michigan Ditch Camp.

Stock in Wichita Bank For Cooperatives2 117,400.0C:

This stock has been reduced from $19,500.00 to $17,400.00 during the current year. This is in conformity with a net indebtedness to the Wichita -Bank For Cooperatives. Stock in Ditch ComPanips, $72.1.00:

In addition to stock owned in the Wichita Bank, The North Poudre awns stock in the Northern Colorado Water Users Association in the amount of

Ci6o.oc,

and in the Poudre Valley Rural Electrical Association $15.00. The Comr:any

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also owns twenty shares of treasury stock whichwas pur-chased at a cost of $700.00 on August 10, 1943.

Prepaid Expense, $199.59:

The -mount of unexpired insurance at the close of the year was

$199.59.

The president and secretary are properly bonded for $10,000.00 each in the Sun Indemnity of New York. Liability and property damage insurance is carried both on the Ford Coupe and the International Truck. The house at Fossil Creek is insured for $700.00, and this policy is de-posited with the Wichita Bank For Cooperatives. All policies, excepting the one at Wichita, are on file in the office.

Fixed Assets, $22 779,,727.73:

During the current year tools and machinery were in-creased in the amount of $128.39. In the miscellaneous equip-ment account items amounting to $75.51 were fully depreciated and charged off. A small parcel of land was sold to Storrs in the amount of $75.00 and there was received $2,841.00 in pay-ment of 7.56 acres of land and for damages sustained on Fossil Creek. Both of these amounts were credited to the cost of ditches and reservoirs. The regular depreciation was charged on all depreciable properties of the cormany all of which re-sults in a net valuation on the closing date of

$2,779,727.73.

Intangibles, p545,100.00:

Priorities and water rights remain at $545,100.00. This is in addition to the fixed assets enumerated above.

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Current Liabilities, $1,329.98:

During the year $200.00 was Paid upon the W. C. Wood purchase reducing the balance now due to $400.00. The

ac-cumulated amounts to the stockholders of Scurvin Ditch remains at

$397.75,

and accrued interest on mortgages at the close of the year is $532.23, resulting in a total amount due of $1,329.98.

1,Tortes, 236,900.00:

During the year $40,700.00 was paid in cash upon the mortgage due the Wichita Bank For Cooperatives and stock was cancelled and credited upon the mortgage in the amount of $2,100.00. _{This reduces the outstanding mortgage to}

$346,900.00. In our opinion this is a very fine showing for the year and this reduction of indebtedness is

commend-able.

Taxes Accrued,

$133.53:

The taxes accrued in the year 1946 and due and pay-able in 1947 amount to

$133.53.

ITet 7orth, '43.2..(208,199.65:

The net worth of the co.:-_- an: shows an increase of $7,092.61 for the year and this is after deducting depreciation in the amount of $23,582.27.

RESULTS OF OPE-HATIDTTS

At the beginning of the year an

assessment

of

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which was allocated as follows: Interest on Mortgage

Mortgage note

am& Mal ,••••

Maintenance and Operation Tollage TOTAL

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1946 Assessment 150 Fossil Creek Preferred Rights

• $4.00 $13,500.00 31,700.00 26,000.00 1 300.00 $72,500.00

c600.00

1946 Assessment Old Right

(Tarner) 25.00

It is to be noted that of the above items the assessment of $31,700.00 has been credited direct to sur-plus as being a canital rather than a revenue item. The remaining portion of the assessLient amounting to $40,800.00 is inclubd in the revenue statement. Fossil Creek paid the regular $600.00 assessment. Leases laroduced an income of $503.34, transfer fees $57.50, water rentals $180.00, and miscellaneous income $262.50. aoerating and General Expense totaled $35,581.83 as compared to $22,610.76 for the previous year. This was due largely to the increased cost of

maintenance expense. This leaves a net operating profit of $6,846.51. Interest received amounted to 1284.58 and dividends from gas and oil $3,746.45, interest paid amounted to $12,602.66

all of which results in a net loss, exclusive of depreciation of $1,725.12. The annual depreciation charge for the year is $23,582.27, resulting in a net loss for the year of $251307.39. It is to be remembered that in computing the net loss in this • manner that the portion of the assessment which was made to

liquidate the mortgage in the amount of $31,700.00 has not been taken into account, while depreciation has been included in the computation. The net loss exclusive of depreciation above in the amount of $1,725.12 indicates how close the col2ipany

kept within its budget during the year. In view of the extra-ordinary maintenance expense we think this is a remarkable

showing.

The books have been kept in a very orderly and satisfactory manner and we want to express our appreciation to the officers and employees of the company for their co-operation and assistance in making this audit.

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Current: Cash in Bank Cash in Till Petty Cash

NORTH YOUDRE IRRIGATION COMPA1TY BALAITCE SI-MET STATE: 771TT

DECEMBER 31,1946 ASSETS

$7,643.13

1,407.17 10.00 $9,060.30 Assess. ents,1946 Co=issary inventory 4,127.68

172.86

$13,360.84

Invest:lents:

Stock- Wichita Bank

for Cooperatives _$17,400.00

Stock- Other Co's _77.00 18,175.00

Pre7)aid Exense: Insurance

_199.59

Fixed Assets: Real Estate $2,150.83 Bldgs. & Im1Dr. $1,132.15 Less Depr.Res. 237.29 894.86 Ditches & Res. 3,312,161.84

Less Depr.Res. 53 1800.00 2,776,361.84 Office Equip. 292.30

Less Depr. Res. 137.67 . 154.63 Tools & Mach. 729.17

Less Der. Res. 585.11 144.06

Equip. 443.43

Less Depr. Res. 381.92

_61.51

Transportation (40.00) _(40.00) Intangibles:

Priorities - 'later Rights

2,779.727.73

NORTH POUDRE IRRIGATION CONPA7Y BALANCE SHEET STATELTENT (CONT'D)

LIABILITIES AND NET WORTH Current: Accounts Payable 36-3-69 Accounts Payable Scurvin Ditch Accrued Interest Yortage Accrued Taxes Fixed:

Note and Yortage

Wichita Bank for Coope-ratives, dated 11/1/36,

due serially, interest 3e, JD 15

Net Worth:

Capital Stock, 10,000 shares at $50.00 ,-]er share

Premium on Capital Stock Capital Surplus

Surplus from Assessments

Surplus Deficit $584,253.44 Less Adj. Depr. 700.00 b3,3.44 Add LOSS,1346 25,307.39

608,860.8_3

3,008,109.65

t3i,356,56.3.16

$400.00

397.75

532.23

133,53

$500,000.00

3,450.00

2,676.017.01

437,593.47

$3,617,060.48

$1,463.51 346,900.00

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NORTH POTIDRE IRRIGATION C.101E-ATTY REVENUE AND EkrPEITDITURE STATE: =TT

JANUARY 1 TO DEC,1-1-= 31,1946 Revenue: Assessments - - - _ OM AM $40,800.00 Preferred Rights - - _ _

600.00

Old Rights 25.00 Leases 503.34 Transfer Fees

57.50

Water Rental 180.00 Misc. Income 262.50 $42,428.34 Operating Expense: Ditch Riders $6,817.21 Gate Tenders 3,856.42 Water Assessments _ _ - 808.75 Water Tollage 178.01 Transportation 1,126.04 $12,786.43 Maintenance Expense: Labor 5,829.68 7aterial & Supplies _ _ 5,838.94 71dgs & Structures - - - 173.40 :7achinery 6: Equipment- - 1,001.28 Construction 257.20 Maintenance Expense - - 9.43 General Expense: Salaries-Officers - OM ••• 6,439.00

Directors Per Diem- - - 311.90 General Office Exp. _ _ 676.19 Legal 685.30 Rent and Light - - - 723.16

Taxes and Insurance - - 396.28 Tel. 7.,nd Tel. 433.64 Net Operation Profit Forward

13,109.93

9,685.47

35,581.83

6,846.51

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Net Op_ration Profit Brought

Forward $6,846.51

Non-Operating Revenue & Exenditures:

Interest Received - - - $284.58

Dividends-Gas & Oil - _{3,746.45 4,t031.03 $1 0,3}

77.54

Commissary Sales 1,274.01

Opening Inventory -Add Purchases

Less Closing Inventory -Interest Paid

Net Loss Exclusive of Depreciation

$54.45 1,392.42 $1,446.137 172.86

De reciation charged for year Net Loss for year - 111

1 274.01 .00

12,602.66

1,725.12 23,582.27 S25,307.39

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NORTH POUDRE iRRIGATIOIT COM7ANY CASH STATnTEITT

1 JANUARY THRU 31 DECE=R, 1946

Receipts: 0,Dening Balance 1/1/46 Assessments -1945 - SID ••• 1•••

6,511.80

Assessments -1946 - 11•11 Am MI

68,372.32

ft _{Fossil Cr.} me ale am

600.00

It Old Rts

25.00

Dividends - Gas & Oil

3,746.45

Interest Received OS I. WO

284.56

Leases ,36-9-69 _ - OM.

375.00

Leases - Hunt & Fish MID 011111

235.00

N/R - Vance

250.00

Office Rent

467.99

Real Estate

2,916.00

Sale of Mules 40.00 Transfer Fees

_57.50

Water 285.00 ..•••

Refund- Telephone OW maw doe 15.54 =ID

Refund- Insurance .1.5 •••• 13.00

Refund- Commissary WO MEP MO 43.00

Refund- Gen Exp. - MN MO ••111 16.32

Misc. Income 252.50

Disbursements: A/P

Commissary Directors -Ditches & Res.

Mhint. --Equip. - Operation NOW 41•• ••• AIM - IMO Supplies -Ditch Assmts. Water Tollage Lease- 36-9-69 Equipment ••., 1111•1

Gen. Office Expense Interest Legal

N. P. - Mtg. Rent & Lights Salaries Taxes & Ins. Telephone -Stock - REA Misc. •••• ••• Cash Balance 12/31/46

$5,829.68

1,001.28

11,033.33

6,030.50

913.75

173.01

200.00 836.98 311.90

24,986.55

96.66

370.59

792.51

12,668.32

685.3o

40.700.0o

1,191.15 6.339.00 516.07 469.18 10.00 15.00 $14,742.51 90,189.21 0,060.30

Cash Balance Consists of: Cash in Bank $7,643.13 Cash in Till 1,407.17 Petty Cash 10.00

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$9,060.30

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Wichita Bank for Cooperatives

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NORTH poureE IRRIGATICY: CO:TAITf NOTES PAYABLE

JANUARY 1 TO DECELBER 31, 1946

ACCRUED INTEREST

BATJAJCE

1/1/46 D=T BALANCE BALANCE INtrhST INTERE3T BALNCE

12/31/46 1/1/46 PAID ACCRJED 12p1/46

V18917oo.0o 442,80o.00

$389,7oo.00 $42,$00.00 $'461 9oo.00

$597.89 $122_668.3?, -112 6o2.66

$52.273

$5974.2

$12,668t32 L2.46o2.66

NORTH POUDRE IRRIGATION COMPANY BAIT RECOITC 7 T Pi=

DECK IID-ER 31, 1946 Our Balance $7,643.13 Bank Balance - - - - 8,977.24 Checks Out:

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NUTIBERS 18427 $30 . 00 20981 17.02 23721 .19 250 56

53.65

25117

97.00

25120

25.00

25131

16.95

25132

12.15

25133

16.35

2 5143 20.00 2 514 5 97.00 25146 150.00 2 5147 275.00 2 5148 25.00 25149 9.00 25150 41.80 2 51 51 448 . 00 11 3-3,4.11

ig.„977.

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iThT NORTH POUDRF, IRRIGATI ON Co. DECETIB7R 31, 1946

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MARCH 13, 1947

AUDITa_IIS TrPolT

THE NCRTH poumn IRRIGNTION COMPANY DEC7MB7R 31, 1946

To The Board of Directors

The North .oudre Irrigation Company Fort Colli,Aa, Colorado

Gentlemen:

''!e have examined the 3alance Sheet of the North ?oudre Irrigation Company as of '.jece ber 31, 1946, and

the 3tate:1(Ints of Income and . 1124plus for the calendar year then ended, have reviewed the system of internal control and the accountiilg procedures of the company and, without making a detailed audit of the transactions, have exa:..lined or tes'Qed accounting records of the caluany and other

supporting evidence, by methods and to the extent we

deemed appropriate. Our examination was made in accordance with Lrenerally accepted auditing stpndards applicable in the circurstances and included all procedures which we considered necessary.

Cash in bank was reconciled with the amount con-firmed direct to us by the depositary, and Petty Cash was counted.

Investments in stock and ditch companies at:;

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in order. 5-tock in the Wichita Bank For Cooperatives was verified by direct confirmation by the bank as of December 31, 1946.

Records pert%iaing to capital stock issued and Fossil Creel: Preferred Rights were examined by us and found to lac correctly stated.

1%r as ascertainable and 30 far as shown

by the boo:' of the conany, all assets and liabilities at 7)*eember 31, 1946 are reflected in the accompanying Balance Sheet.

The disbursements during the year have been verified by examination of all cancelled checks returned by banks,

journal vouchers and reeeipted (=pence bills. The recorded receipts have been treed as deposits in the bank account.

7e have satisfied ourselves thA all income frol assessments, water

rents,

preferred rights, royalties and leases have been properly accounted for.

On the above 1),..sis, in our opinion, the accompany-ing Balance Theet and relted statements of Income and

Surplus present fairly the position of The North Poudre irri-gation

Company

at Deceber 31, 1946, and the results of its operations for the calendar year, in conformity with generally rIccepted accounting principles applid on a basis consictent with that of the preceding year.

Very truly yours, S. ROGERS & SON

By /V

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BALANcE

HET CP.sh,19.2.160.302

Cash on hand consists of a balance in the First National nk o 7,643.13, Cash in till $1,407.17, and ?etty Cp.sh a0.M3. The total receipts for the year were

$84,507.0. The disbursements for Vte year amounted to 00,189.21, leaving a bnlance at the close of the year

of

)9,060.30.

.ssesgents aeceivable, .04.1 127.68t

There remains at the present time unpaid assess-Ilents for the year 1946 in the sum of $4,127.68.

sider this a very ,--,00d showing. Comnissrj Inven4orios._ f2172.86:

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It was not considered necessary for us to make

check of inviantories on hand, and

we

have accepted the valuations in coi. -lete detail, Those inventories are maintained at the

Michigan Ditch Camp.

Stock in ":ie,lita BAnk For Coopei.'ati t400.00: This stock has been reduced frou $19,500.00 to $17,400.00 during the current year. This is in confoemity with a net indebtedness to the ficniLa liauk For Cooperatives. Ttock in Ditch Companies, )77).003

In addition to stock owned in the Wichita Bank, The North Poudre awns stock in the Northern Colorado ater Users Association in t_ie amount of ,(So.00, and in the Poudre Valley Rural Electrical :.ssocia don $15.00. The Company

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also owns twenty shares of treasury stock which 4as pur-chased at a cost of $700.00 on 'ugust

10, 1943.

Prepaid Expense, .:;1199.59:

The amount of unexpired insurance at the close of the year was 009.59. The president and secretary are properly bonded for a0,000.00 each in the 'Jun Indemnity of New York. Liability -tnd property damage insurance is carried both on

the l'ord Coupe and the International Truck. The house at Fossil Creek is insured for 000.00, and this policy is de-posited with the Wichita Bank For Cooperatives. All policies, exceptiag the one at Wichita, are an file in the office.

EliCaLL.2221-1,27.2sliadaL

During the current year tools and nachinery were in-creased in the amount of 0128.39. In the miscellaneous equip-ment account items amounting to -;115.51. :;e_-e fully depreciated and charged off. small parcel of land was sold to Storrs in the amount of 05.00 and there was received $2,841.00 in pay-ment of 7.56 acres of land and for damages sustained on Fossil Creek. Both of these amounts were credited to the cost of ditches and reservoirs. The regular depreciation was charged on all depreciable properties of the company all of which re-sults in a net valuation on the closing date af

2,779,727.73.

Intangibles, ,545J 100.00:

Priorities and

water

rights remain at 545,100,00. This is in addition to the fixed 13sets enumerated above.

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1urerLiii.ities

_111.32.922Pa

Jul'ing the year $200.30 was paid upon the W. C. Wood purc1a6e reducing the balance now due to 0400.00. The

ac-cumulated amounts to the stockholders of Ccurvin Ditch remains

at 2

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37.75,

_{and accrued interest on iliortgages at the close}

of the year is 432.23, resulting in a total amount due of $1,329.98.

Uortigages. 346,900.00:

During the year $40,700,00 was paid in cash upon the mortgae due the Wicbita BW47. For Cooperatives and stock was cancelled and credited upon the mortgage in the amount of

2,100.00. _{This reduces the outstanding mortcage to}

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$346,900.00. In our ,Jpinion this is a very fine showing for the year and this reduction of indebtedness is

commend-able.

Taxes ccrued, a33.33:

The taxes accrued in the year 1946 And due and pay-able in 1947 amount

_{to 4.33.53.}

Net "Torth, 3O081199.6,5:

The net worth of the company shows an increase of f,;7,092,61 for the year and this is after deductinz depreciation in the amount of $23,562.27.

RESULTS OF OPERATIONS

At the beginning of the year an assessment of

4.25 _{per share was levied upon Ai the stock of the company}

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which was ?.11ocated as follai.:s: Interest on Mortgage

rortgage Note - - -Maintenance and Operation Tollpe

--- WPO 4101.

1946 Asseserlent 150 Fossil ."':ree'zi. Preferred 'Rights

ü 4.00 . - _51.35 3.1? . ... 2.60 - - ----2-1.-a---$13,500.00 31,700.00 26,000.00 1,300.00

ir72.r:_

3.00

;,6,00.00

1946 Assess-ent Old RiOLt

(:!arner) 25.00

It is to be noted that of the above iten.s the assessvJent of $31,700.00 has been credited direct to sur-plus as being a carital rather than a revenue item. The remaining portion of the assesErent mounting to $40,800.00 is inclIltd in the revenue statement. Fossil Creek paid the regular $600.00 assessment. Leases produced an income of

503.34, transfer fees

$57.50,

water rentals $180.00, and miscellIneou income 262.50. Operating .,nd General Expense totaled $35,581.83 as compared to $22,610.76 for the previous year. This ,,Ts due largely to the increased cost of

maintennnee e:tpense. This leaves a net operating profit of $6,846.51. Interest received amounted to $284.$8 And dividends from gas and oil $3,746.45, interest paid amounted to ;;12,602.66

all of which results in a net loss, exclusive of depreciation of $1,725.12. The annual depreciation charge for the year is $23,582.27, resulting in a net loss for the year of

$25,307.39.

It is to be remembered that in cmputing the net loss in this manner that the portion of the assessment which was made to

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liquidate the mortgage in the amount of 031,700.00 has not been taken into account, while depreciation has been included in the computation. The net loss exclusive of depreciation above in the amount of >2.,72.5.12 indicates how close the colapany

kept within its budget during the year. In view of the extrn-ordinary maintenance expense we think this is a

remarkable

showing.

Tne books have been kept in a very orderly and satisfactory manner and we want to express our appreciation to the officers and employes of the empany ,or their co-operation and assiatance in making this audit.

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NORTH POUDRE IRRIGATION COMPANY BALANCE SHTTT STATMMENT DEC1711371/ 31,1946

Aaami

Currc,141 Cash in Bank fl,643.13 Cash in Till 1,407.17 t'etty Cash _---- 10.00 $9,060.30 Assessments,1946 4,127.68 Thrlmiasary inventory 172.86 13p360.84 Investdients:

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'-tock- '.:ichitrt Baukfor Cooperltives 4.7,400.00

3t,)ck- Other Co'c 775.00 18.175.00

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7rid x. ense: Insurance Real 'state Blags. & Llpr. Less T)epr•Iles. Ditches & Rea. Less :epreJes. Office Equip. Less Depr. -tes. Tools &

Less Der. Res.

04132.15 237.29

3,312,161.84

535,800.00

292.30

137.6.7

729.17

35.11

rIsc. 7quip. 443.43 Less Depr. Res. 331.92 Trasport-,tion (40.00) Int lAbl a: irlorltles *,-ter .;hLs 4... 02,150.83

894.66

776,361.84

154.63

144.06

61.51 (40.00) .

r9.59

2,779.727.73

.100000 5-Iti3 • :) 150 .lo

NORTH POUDar IRRIGPvTION CCtirANY BALANCE SliZET STATE ENT (CCM: D)

a. I. mit 0. dio, op ow LIAB:LITIS XIM N7T 2'cicotints P:,yable 36-9..69 $400.00 Accomts Scurvin Ditch,

_397.75

Accrued Intezys,3t Mortae 532,23 Accrued 'faxes 1,463.51 Fixeds

Note an.d 7orta

7ichitn flank for Coope-ratives, dated 11/346,

411

due serially, taterest

3e, JD 15 346,90040

Net -orths

Capital ;took, 10,3f)0 sres at ,;50.00 .er ahare

-Premium on Ca:iital Itock Capital 3urplus

Surplus from A3seswients

Surplus -;aficit Loss (.4. -)epr.1 Add LO3S,1946

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500,000.00

.3,450.00 2,676.017.01 437,521..47 n6617,060.48 584,253.44 700,00 $5o3,5n.44 25,3

o7

.32

_6o8,860.83

_3,003,199.65

A.356.56 .16

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NMTH ParDRn IlnIGATION ,70r

Arr

atilnytm

IDCPTZTDITU

STATIT 7Ttl'T JANUARY 1 To DECTITBM 31,1946 leVenue: :se,,;sarlents -Preferred i_-;hts Amd ?hts -Leases Trancifor Tees Water rise, Income 00 em OM OM 00 00 OP MP sw 00 40 00 do sio So oop mo. so GM SW 110 OD 22222.11=47.:1122aPe 1 Ditch Rider:: Gate Tenders 'later se ssment s 'later olive Transportation 00 11111 SD so Oa IS. IMO OS 00 IMP IMO 010 Maintenance 73cdenses Labor supplies Bldgs & ltrucures -rachincry & r;quiphaent-Construction

-Maintenance 7xpen9e s

Salaries-0 'ficers Directors Per Diem General 'Tfice Exp. Legal - -Rent and Light

Taxes and Insurance Tel. -Ad Tel.

4-OM 00 ▪ 1110 00 ,•• 0111 do so 00 WO 001 00 1011 $6,817.21 3,856.42

808.75

178.01 11.126.04 5,829.68 5,836.94 173.40 1,001.28 257.20 ^.43 6,439.00 11.90

676.19

685.3o

723.16 396.28 453.64

40.800.00

600.0o

25.00

503.34

57.50

15.0.00 262.50 042,428.34 12,766.43 13,109.93 9.685.47 -110111§1

Net Operation Profit 2orward 6,846.51

9, 5 8 4 .3 0 6 7 6.1 9 6 8 5 .3 0 4 5 3 .6 4 1 0.3 9.4 3 *

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Net Operation Profit BrotOlt

Forward --- A A A 10,41 A A A

n6,846.51

Nop.-Operatinr aqvenue & 7r-endiuress

Interest Received 3284.58

Dividends-Cas & Oil al AO

3,746.45 .1.4911.9.1

10,b77.54

Co=iscrtry .1e3 - - _ - - 1,274.01 Openinz Inventory - - _ f54.45

,,d(.1. *Purchases 1,,22.42 -i,446.ö7

Less n_osing Inventory - 172.86 14211121 .00

Interect ?aid k2 602.66

Net Loss 7xclusive of

7)oprociatin 1,725.12

Denreci-ti3n charged for year 23,582.27

Yet Loss for year .25,307.39

•

•

NORTH POUDRE rIRIGAIION CO1rANY CASH STATITTINT 1 J.7.P.11! THRU 31 TECTT!STS1, 1946 Receists: Opening BPlance 1/1/46 Assesslents 1945 Assessments 1946 -Fossil r. Old Rts If Dividends - ' Interest 7leceived Leflses,36-9-69 Leases - Hunt & 1101 VrInce Office Rent Oil Fish Real 7state of i'ules Transfer Fees Water OW Refund- Telel)lione Refund- Insurance Refund- Cormissnry Refund Gen 17.1xp• -Vise. Income Disbursenzents: A/P OD OS Comissary Directors

Ditches & aes. Mint. .10 Equip. Operation Supplies -Ditch Assmts. "ater Tollage 4.0 WO OW oft WV VW WO Wis WO woo MD Lease- 36-9-.69 7quipment Gen. Office nxpense Interest

Legal

SRO Oil WW

SOS ONO ROI

pa Ftg. sent (P: Lic;hts

alaries -Taxes & Ins. Telephone -(,tock ow sW wo ▪ ow OW Cash Balance 12/31/46

$5029.68

1,001.28

11,033.33

6,030.50

91.75

176.01

68,372.32 630.00 25.00 3,746.4 284.5 375.00 235.00 250.00 467.99 2,916.00 40.00 7.50 5.00 15.54 13.00 43.00 16.32 252.50 200.00

836.98

311.90

014,742.51 84. 507.00

09.

A •51

24,986.55

96.66

370.59

792.51

12,668.32

685.30

40.700.00

1,191.15

6.339,00

516.07

469.18

10.00 13.00 _90,189.21 ,9,060130

Cash Ballnce Consists of: Cash in bank Cash in Till -Petty C.tsh

•

•

Oa ▪ 41E1 • 00 - 7,643.13 1,41)7.17 10.00 .91060.30

S

•

'gichit, a Bank for Co opez s —

•

••• EMO BA ANCE 1/1/46 11

.14(:)RTH POUDRE I ::1IGATION CO: ?:-ITY NOTES PAYABLE jAlitre.BY 1 TO DEC; B-1), 33.1 1946 DEBIT Ourroorriorkr* or or or or or .11. 3 _‘:.ANCE 3t2(132/46

3

8c7OO.9Q 4Q& a

I

fit Loca,s1

,AccEuT.:,-,

BA i. AN O LERET INT:dd.-1r z 4P6-1P il;CAJE7) 19.,P11/46

5.92

0

E-22 4.P292=tgLA

,

8

12

_k

668

':t12 6

12

66

_

1'4

60,

)

66

_{•'5") 2 .21}

•

NORTH POUDi IRRIGATION COTTANY B RT'CONCILF2T2rr DECE!113ER 31, 1946 Our Balance $7,643.13 Bank Balance - so so

,977.24

Checks Out:

•

•

.N*IJ: :B1.11-33 -1-7427 '‘:)30.00 20981 17.02 237l.19

L'i

'-056

53.65

25117

97.00

25120

25.00

25131

16.95

25132

_1..15

25133

16.35 2514) 20.O 2514,5 97.00 25146 15,53:0000 25147 27 25146 25.00 25149 9.00 25150 41.80 25151 446.00 113_34.11 i.;,8,977.24 , ?8,977.24

.Vi.T.:75AL AU?, 1- 02.T. i _{;OATH i: UitE IRRIGATION C .}

Suite 210 Alpert Block Telephone 613

•

•

4ntheyn5 3

,

.

Aleti, Ph.

.0.

REGISTERED ACCOUNTANT

FORT COLLINS, COLORADO

January

7, 1946

AUDI TOR S EMRT

THE NORTH POUME ILRIGATION COLT= JECEMBER 31, 1945

To The Board of /rectors

The North Poudre Irrigation Company Fort Colli-as„ .:olorado

Gentlemen:

We have examined the Balance sheet of The North Poudre Irrigation Company as of Acember 31, 1945 and the statements of Income and 3urplus for the calendar year then ended, have reviewed the system of internal control and accounting procedures of the company, and have exaL.,ined or tested records of the coppany and other supporting

evi-ence by methods and to the extent vie deemed appropriate. Cash in bank was reconciled with amount confirmed direct to us by the depositary and petty cash was counted.

Investments in Stock and Atch Companies as shown by company records were examined by us and found to be in order. Stock in the 'Achita Bank For Cooperatives was verified by direct confirmation by the Bank as of Deceither 31, 1945.

.ecords pertaining to capital stock issued and Fossil 'I-eek Preferred lAghts were examined by us and found to be correctly stated.

Jo far as ascertainable and so far as shown by the books of the company all assets and liabilities at ,ecea_ber U, 1945 are reflected in the accompanying Balance Jheet•

The disbursements during the year have been

verified by examination of all cancelled checks returned by banks, journal voucher and receipted expense bills. The recorded receipts have been traced as deposits in the bank

S

•

e have satisfied ourselves that all income from assessments, water rents, preferred rights, royalties and leases has been properly accounted for.

On the above basis, in our opinion, the accompany-ing Balance Sheet and related statements of Incone and

6urplus present fairly the position of The North Poudre Irrigation Company at ;ecember 31, 1945 and the results of its operations for the calendar year, and conform to ienerally accepted accountinL, principles applied on a basis conksistent with the preceding year.

•

•

7.1).LAN,T

.41shs. :144.2742t;3"1:

Cash on hand consists of a balance in the First National Bank of ..„;14,72.6 04 each in till ;, 16.47 and petty cash ;,,10,o0.

The total receipts for the year were $79,628•99. The disbursements for the year amounted to 79,504..u0, leaving a balance at the close of the year of 4;14,742.51.

1.eceivable,

The on3,y note held by the company is one given by A. Vance in favor of The Lountain & Plains Irrigation Company. No payments have been made on this note during the present year. Interest is paid to April 1, 1945. This note now bears

interest and is secured by 4L- shares of Gilmore Reservoir :Te-ferred A„zhts. This note is considealibly past due and it is our opinion as previously stated that collection should be .ade an this note.

There remains at the present time unpaid assessments for the year 1945 the sum of '$6,511.80. This is nearly k4,200,00 in excess of the amount due and unpaid one year ago.

Cornissary Inve4o71.:111.4..a.

It was entirely impractical for us to make a physical inventory of commissary supplies cal hand and the amount being relatively mall we have accepted the valuation s given to us by employees of the company.

o k in 'di,11 t Bank for%.)o or tiv a 00.00:

This -tock ha x been reduced from 1;;21,7001.00 to ,19 500.00 ..J.urin the current year. This is in conformity wit': the net

indebtedness to the Wichita Bank for Cooperatives. Stock irlDit,ch Coppanies, !65.00:

2;() chances have occurred in the investments in stocks owned by the company during the past year. previously stated in our reports the value of the stock carried on the books has no relationship to the market value of these shares.

•

•

irepaid ExApA9 $92.80t

The amount of unexpired insurance at the close of the year was 02.80. The President and eecretary are properly bonded for ,10,000.00 each, Liability and property damage insurance is carried on both the Ford coupe and the International truck. The house at Fossil Creek is insured at 700.00 and this policy is deposited with the Wichita Bank For Cooperatives. The other policies including state empensation aee on file in the office. Fixed Asset, 2 8_06 1174a:

7

.1uring the preeent year the company has purchased two lots, 48 end 49 Block 11 on est ountain Avenue, upon which they may eventually erect an office building. These lots cost a total Of $2,150.83. All buiIdinLs and improvements have been depre-ciated out with the exception of tTi1132.15. itches and reservoirs eemain it exactly the same cost as a year ago with the exception of added depreciation. Office equipment has been increased from $117.30 to $292.30 due principally to the purchase of a safe.

Tools and machinery remain at 600.78. rlscellaneous equipment remains at $518.94. The net valuation of fixed assets after de-ducting depreciation is $2,806,137.61.

2.4111W1111ftae-5llel0Qe02:

Priorities and water rights remain at $545,1e0.00. This is in addition to the fixed assets ebove.

,IcgpLints Payal94 4,595.64:

eurinL; the year $200.e0 was paid upon the W. C. Wood

purchase, reducing the balance now due to 600.1e0. The accumulated amounts to the stockholders of Jcurvin eitch remains at

$97.75

and accrued interest on morteages at the close of the year is $597.89, or a total of *1,595.64.

L9EkeAL914-1,382eageg9:

During the year 40,100.00 was paid in cash upon the ::‘ortgage to the Wichita Bank for Cooperatives and stock was

cancelled and credited upon the mortGage in the anount of $,2,30.J0. This reduces the outstanding mortgage to 389,700.00. In our

opinion, this is a very fine showing for the year end this reduction of indebtedness is commendable.

sa422_4aTtAgg4..

The taxes accrued in the year 1945 and due and payable in 1946 amount to

_$133.53.

•

•

lig.t..1!_{2EI114_34.2.11412ZA2i:}

The net borth of the company L)hows an increase of $19,809.85 for the year and this is after deducting

depre-ciation in the amount of ..,;,41371.83.

-_ESULTS OF OPERATIONS

At the beginning of the year an assessment of ,7.25 per share was levied upon 011 the ,tock of the company 1,bich was allocated as follows:

Principal Mortgage Note $ 3.51 35,100.00

Interest 1.47 14,700.00

Operation, 1:aintenance letc. _.20 ,_21000.00

TollaL:e

_{___1222.22}

1945 Assessment 150 Fossil reek Preferred ,ights

L c4.00 1944 .sesamant Old 1,-.3.4,ht (Warner) 7.25 72 T.10,00

41600soo

‘4,4.

0 It is to be noted that of the above items the

assesament of y35,100.u0 has been credited direct to surplus -s being a capital rather than a revenue item. The remaining portion of the ,se4atLent amountin6 to $37,400.00 is included in the revenue statement. Fossil Creek paid the regular ;,;600.00

sesament. Leae., produced an income of 400.00, transfer fees 462.00, water rentals :;180.00, water assessments -,105.y0, and micellaneous income 1-J5.00. The gross income for the

year as outlined above ac.ounted to $39,207.00. This, of course, does not include the 35,100.00 which is characterized -s a

capital contribution. 3peratini-J aad general ezpeme..1 total

$22,610.76, leaving a net operating profit before interest itcv.s of 16,596.24. interest received arounted to ,;297.,2 v.nd

dividends on oil and gas royUties -.6,087.97, increasing the nte income to .,22,981.43. There should be deducted from this amount interest paid in the sum of $14,084.75 re,Lulting in a aet L:ain exclusive of depreciation

481896.68.

The

depre-ciation for the year upon reservoirs and equipment amounts to N)4 371.81 resulting' in net lo.,s for the year of

15,47!;.15.

-ft

is our opinion that the Oampany has mtde a very fine showing for the year. The books h;_ve been kept in a very orderly ,na ,atisfactory manner.

-0 wait to express our appreciation to the officers and employees of the company for their cooperation and assistance in making this audit.

S

:.lurrents

TIM IKIMi POUDAn IMIGATION COPPANY BALta.-17,..;3Hr -.3T.A.1173: ENT_

ImIcNr1377.2 31, 1945

041,6004111.1.10 A33ETS

! ah in First t,1 :.ink 14,726.04

Cash in Till- - 6.47

Petty Cash m• mo ism ,14,742.51

Notes Aeceivable 250.00

Assess..ents 'tee. 1945 - 6,511.60

raisalry inventory - 3a6.40 v2.1,640

investclents:

Ttock in :ichita Drv.k for

Cooperatives

-itock in Other ::or.lpanies PreJaid ttcpenaes Insurane Fixed ;',.ssets: ,1?,500.00 65.00 19,565.00 92.b0 -J.ell '11..nte - - - _ _2,150.83 Buildings :ck 11,Trovenents - '14132.4

Less 'epr. .estive . - - _{10.60 951.47} Ditches & :leservoirs -. - -3,315,077.64

Less Tlepr.les-rve . - - . _{- 512,400.00 2,802,677.84} Office Tlquipment 292.30

Lees 7)epr.eserve - - - _ _ 108.44

_183.86

Tools ..,

zl.chinary - - - _ - 600.76

Less 7e;.x.'aes,,rve - - vM, ,WA .. 525.05

75.73

:isc. 71quipent _516.94

Le _{so nepri ..eserve} 01. .4. .m _ _421.06

... 97.b6 4806,137.61 .1.4t14*N-cibleo:

Priorities - _{'fatur Rights}

•

Currents

iiI !roam pm-7)17, 1011P ANY 31-17,13T STrn ..fittivErr

DEcr...?..,

.F.7.711 310 1945

LIABILITI35 AND nnT MRTH

Accounts hvable - f. 1.-!ood

,600.00

.

_{a .3curvin -itch}

397.75

iccd.. Int. !,7olvt6nz;e - - . .

597.0 ,1,595.64

Mods

..._

Note & Lt,J, 7ich1t-, Bank for 'Thoperatives d. 124136 due

serially. int. 3fr: J---' 14 389 70000

•'.ccrueds

Taxes ',ccrued

133.53

1;et 7orths

apital 3tock 10,000 shares - .Z40.00 par value .

Premium on Cl'itn1 3tock-Capitr1 Surplus -3urplus arising fro* asses.

an Capit-,1 3tock

›peratinc 3urplus neficit

1/1/45

Less 2Adj. 'epri Loss 1945

•

aini• 41.• 500,000,00 3,450,00 2,676,017.01 40i,821.4 ;,30051,36 566,963.29 16.'4,00 :Ara' 151475.15 56412;i3.44

1.22911.122121

clazi4-16,La.

•

_Venues

Tag NORTH

Nyman ianaTioN

COMPANY

Rvntrus

AND FATIMITURE STATENT JANU3Y 1 TO DECIMBM 31, 1945

4111041/00104111001000

Assessments 40, ea 40 '..37,400.00

Pfd. Rights - :Possil Creek —

L0000

4.

Old Aight - - - - . - we .•• H... 25.00

Leases . . - - _700.00

Transfer ?ees - - - - . - _ _ 62.00 'Inter ':,:ental - - me ro• .. ••• ... AMP

180.00

'later Assessments - - oft ioff OM WO 105,00

'Lisc. Incc.-le - ---——— NO 135.00 $39,207.00

Qperatii :3:)ense

Ditch Riders ;,;3,899.01 Gate Tenders St 'Iatchmln 1,560.67

later Assessments - $64.38 6,024.06 aintenance 7xpenses

Labor ,997.2C Mnterials & 3upplies 1,014.42 Buildings & Structures- 460 118.30

Mricbinery & Equipment - _{533.22 6,683.20} lenern1 'Zrpenses

3alaries - Cfficers iii 01. We . OP ,,7,039.00

Directors Per Diem 273.15 General Offie Exp. - - - 794.90 Legal - - or vo .., - _576.00

•ent Ei; Li:;ht . - - 312.24 Taxes & insurance 397.11 Telephone ::: TelegrAph - - - - 414..,-,

Leases . - . -

_{96.66 9,903,p}

22,610.76 Net pperatiRg Profit Forward - _',16,596.24

THE NCEITH POUDRE IRRIGATION COITANY REVFXUE AND nXPT7NDITURn3 3TATMSNT

JANUARY 1 TO DECT2L3772 31, 1945

WwWWwow

Net Operating Profit Forward

1.12...2MILLU.410:11.1.111LiLL=.!221.1414.,ur es s Interest eceived -

-Dividends - Gil (74 Gis

Commissary Sales Onen inventory Add rurchases

016 4. fillY

AMP alba MO SIP

Less Closinc-,? Inventory Interest Paid

-M. moo

w tee

Net .q.Ain 3xclusive of - epis. -el)recirltion "Th.araed for Year Net Loss for Year

-•

187.16 4,54.45 0.6,596.24

6.A5.19

022 981.43 00 14,084.75 .8,896.68 24, 1.63 JJ:,

475.

•

THE NORM ?CAME IRRIGATION COLIPANYCASH STATP411---= JANUARY 1 ID ;JECIMBIll 31, 1945

40110,

prznins

Opening Balance Jan. 1, 194 5

-Assessments 1944- - .1 AM ... am Ois _$ 5,342.75

Assessments 1945 _65,88.2O

A..;se4amoants Fossil 7.treek- - - 600.00 Assessments Old sight - - - - 25.00 Dividends Gas and Oil - - . - 6,087.97

Interest- - . . _297.22 - . . _400.00 Rentals 36-9-69 . ... 300,00 62.o0 ..ater :.ent 285.00 Refund - Im.;u.rance- . . - - . _54.00 Refund - Telephone 51.85 iscellaneous 115.00 79,625. .-aSBURX.LENTS $ 14,617.52 246.) Accounts Payable -36 . - - 200.00-9-69 :,\ommissary- - 3.78

A..rectOr6 per Diem 273.15

itches ec Reservoirs:

Laintenance - 4,901.87

1;aintenance i.ichigan- - - - .... 1,351.44 i•:laintenance Lachinery & i;quips _553•22 Operation - - - ..

5,433.01

7..'ater Assessments . - - 564.38 cluirlment 175.00

Cleneral Office Expense 794.99

Interest on Mortgage 14,14 .96

576.00 Notes Payable ;.ortzage- - _ OM 110 40,300.00

sent and Licht 312.24

Salaries

_71039.00

Taxes and Insurance - - - 313.38 Telephone 477.11 Real Estate Purchased - - . - in.

2 1

0

.

83

790 v.27

Less Telephone 10.82

Comissary

_54.45

_{_ 65.22}

_g

_04.0U

3a1ance Cash ...)e c. 31, 1945- . _{14 2.}

CAsistin, Cf:

• _{Cash in Till- - -} Cash in Bank 14,726.04 6.47

Petty cash- - --- - 10 u0

WE NORTH P0IDI.11 ILLIGATION CCILIPANY MOR1G.A2'..1; AND N023 PAYABLE

DECILMIL 311 1945

41116,.. 011114111.1111110•••••

Balance Balance Balance AV

TT

PIVEITST Balance 1/1/4 Lag

14.214.

4i

1/1/45 Pa1d Accrued 2P1/4' 'Achita Bank for

Cooperatives. i ortgage Note 11/1/36 due

zier-ially„ Int. J-314. 's;1432,200 1,389,7u0 5/10/45 11/15/45 2/12/45 7,200 2/12/45 _tock 400. 3/10/45 _4,600 3/10/45 -;tock 300 3/19/45 5,700 3/19/45 stock 3u0 4/7/45 _5,700 4/7/45 -tock 300 4/13/15 _3,700 4/13/45 6tock 100 500 4/20/45 4/27/45 4/27/45 stock 10/17/45 10/17/45 tock 4,200 4,000 200 5,200 300 150 412,6(./0

₇₆₀

663.10 _14,084.75 7,246.59 6,903.37

6o3.10

.

597.89

.?( • 9

•

THE NTH PrAJDRE IIIIIGATION C0-TA:7Y BANK RBCONCILFEENT

DEC 'Vara 31,1945 SP

Check Yo. ,motint

Our Be, 'Inc e - — - . .. 14,726.04 Checks .;11-t .. .. 1.0 *. 4.. 18427 C 30. 00 20981 17.02 23721 .19 24674 25,00 24676 21.60 24678 13.65 246/9 6.00 24661 125.40 24689 4.5,5 24691 15.95 24693 97.00 24694 315500..0000 24696 24695 25.00 Ba„ak Balance

881.56

15,607.60

15,697.60

,607.60

ANNUAL AUDIT RTTORT

NORTH POUDRE =I GA TI ON CO. T)E0711B7R 31, 1945

Suite 210 Alpert Block _{Telephone 613}

4nth0n5 Nogati,

Ph.

.0.

REGISTERED ACCOUNTANT

FORT COLLINS, COLORADO

January

7, 1946

AUDITOR'S REPORT

THE NORTH POUDRE IRRIGATION COUPANY DECELBER 31, 1945

To The Board of Directors

The North Poudre Irrigation Company Fort Collins, Colorado

Gentlemen:

We have examined the Balance Sheet of The North Poudre Irrigation Company as of December 31, 1945 and the statements of Income and Surplus for the calendar year then ended, have reviewed the system of internal control and accounting procedures of the company, and have examined or tested records of the company and other supporting evi-dence by methods and to the extent we deemed appropriate.

Cash in bank was reconciled with amount confirmed direct to us by the depositary and petty cash was counted.

Investments in Stock and Ditch Companies as shown by company records were examined by us and found to be in order. Stock in the Wichita Bank For Cooperatives was verified by direct confirmation by the Bank as of December 31, 1945.

Records pertaining to capital stock issued and Fossil Creek Preferred Rights were examined by us and found to be correctly stated.

So far as ascertainable and so far as shown by the

6

books of the company all assets and liabilities at December U, _{1945 are reflected in the accompanying Balance Sheet.}

The disbursements during the year have been

verified by examination of all cancelled checks returned by banks, journal voucher and receipted expense bills. The recorded receipts have been traced as deposits inthe bank

•

•

We have satisfied ourselves that all income from assessments, water rents, preferred rights, royalties and leases has been properly accounted for.

On the above basis, in our opinion, the accompany-ing Balance Sheet and related statements of income and

Surplus present fairly the position of The North Poudre Irrigation Company at December 31, 1945 and the results of its operations for the calendar year, and conform to generally accepted accounting principles applied on a basis consistent with the preceding year.

Very truly yours,

---•

4

BALANCE SHEET

Cash x S14,142.51:

Cash on hand consists of a balance in the First National Bank of $14,726.04, cash in till $6.47 and petty cash S10.00.

The total receipts for the year were $79 7628.99. The disbursements for the year amounted to $797 504.007 leaving a balance at the close of the year of $14,742.51.

Notes Receivable, _$250.00:

The only note held by the company is one given by W. A. Vance in favor of The Mountain & Plains Irrigation Company. No payments have been made on this note during the present year. Interest is paid to April 217 1945. This note now bears 5%

interest and is secured by 4 shares of Gilmore Reservoir Pre-ferred Rights. This note is considerably past due and it is

our opinion as previously stated that collection should be :lade on this note.

Assesaments Receivab

There remains at the present time unpaid assessments for the year 1945 the sum of $6 1 511.80. This is nearly $17 200.00 in excess of the amount due and unpaid one year ago.

Commissary Inventories 4;l36.49:

It was entirely impractical for us to make a physical inventory of commissary supplies on hand and the amount being relatively small we have accepted the valuation as given to us

by employees of the company.

Stock in Wdchita Bank for Cooperatives, $19,500.00:

This stock has been reduced from $217700.00 to $19 7500.00 during the current year. This is in conformity with the net

indebtedness to the Wichita Bank for Cooperatives. Stock in DiL,ch Companies 65.00:

No changes have occurred in the investments in stocks owned by the company during the past year. As previously stated in our reports the value of the stock carried on the books has no relationship to the market value of these shares.

•

•

Prepaid Expenf.4_$9!2.80:

The amount of unexpired insurance at the close of the year was 4;92.80. The President and secretary are properly bonded for ;4,10,000.00 each. Liability and property damage insurance is carried on both the Ford coupe and the International truck. The house at Fossil Creek is insured at $700.00 and this policy is deposited with the Wichita Bank For Cooperatives. The other policies including state compensation are on file in the office. Fixed Assets, $2,806

During the present year the company has purchased two lots, 48 and 49 Block 31 an ::est D)untain Avenue, upon which they may eventually erect an office building. These lots cost a total of $2,150.83. All buildings and improvements have been depre-ciated out with the exception of $1132.15. Ditches and reservoirs remain at exactly the same cost as a year Ago with the exception of added depreciation. Office equipment has been increased from $117.30 to 292.30 due principally to the purchase of a safe.

Tools and machinery remain at $600.78. Miscellaneous equipment remains at $518.94. The net valuation of fixed assets after de-ducting depreciation is $2,806,137.61.

Intangibles q545100.00:

Priorities and water rights remain at $545,100.00. This is in addition to the fixed assets above.

Accounts rayable,_

During the year $200.00 was paid upon the W. C. Wood

purchase, reducing the balance now due to $600.00. The accumulated amounts to the stockholders of Scurvin Ditch remains at

,397.75

and accrued interest on mortgages at the close of the year is $597.89, or a total of $1,595.64.

E2EIEAL2A4.

$3891700.00:

During the year ,;40,300.()0 was paid in cash upon the Llortgage to the Wichita Bank for Cooperatives and stock was

cancelled and credited upon the mortgage in the mount of

$2,200.00.

This reduces the outstanding mortgage to $389700.00. In our opinion, this is a very fine showing for the year r_nd this reduction of indebtedness is commendable.

Taxes Accrued,

a133,13:

•

• Net Tviorth,

The net worth of the company shows an increase of $19,809.85 for the year and this is after deducting

depre-ciation in the amount of $24,371.83.

RESULTS OF OPERATIONS

At the beginning of the year an assessment of $7.25 per share was levied upon all the stock of the company which was allocated as follows:

Principal Mortgage Note $ 3.51 $ 35,100.00

Interest 1.47 14,700.00

Operation, Yaintenance l etc. 2.20 22,000.00

Tollage .07 _700.00

1945 Assessment 150 Fossil Creek Preferred Rights

cg $4.00

1944 assessment Old Right (Warner)

8 7.25 8_12,500.00

$600.00

$25.00 It is to be noted that of the above items the

assessment of 4;35,100.00 has been credited direct to surplus as being a capital rather than a revenue item. The remaining portion of the assessment amounting to $377400.00 is included in the revenue statement. Fossil ::reek paid the regular $600.00

assessment. Leases produced an income of $700.00, transfer fees $62.00, water rentals $180.00, water assessments $105.00, and miscellaneous income $135.00. The gross income for the

year as outlined above amounted to $39,207.00. This, of course, does not include the ?35,100.00 which is characterized as a

capital contribution. Operating and general expenses total

,',)22,610.76, leaving a net operating profit before interest items of 16,596.24. Interest received amounted to $297.22 and

dividends on oil and gas royalties

$6,087.97,

increasing the like_ income to 22,981.43. There should be deducted from this amount interest paid in the sum of $14,084.75 resulting in a net gain exclusive of depreciation of

$8,896.68.

The

depre-ciation for the year upon reservoirs and equipment amounts to $24,371.83, resulting in a net loss for the year of $15,475.15. It is our opinion that the Company has made a

very fine showing for the year. The books have been kept in a very orderly and ;,atisfactory manner.

7c want to express our appreciation to the officers and employees of the company for their cooperation and assistance in making this audit.

•

•

•

1-101-ITH POUD7,.E IHRIat1.17017 COITA1TY

BALANCP 7

DECETIBEa-7. 31 1945

Current:

ASSETS

Cash in First :7at'l Tank Cash in Till Petty Cash -:Totes Receivable •••• •••• ssessz4en-c,s Rec. 1945 Co_missary inventory MI IN InvestrJents:

Stock in -Tichita Dank for Cooperatives Stock in Other Companies Pre-:Daid Expense:

Insurance Fixed Assets:

stateReal

Buildins & Improvements Less Deur. Zesr,,2ve -Ditches & Reservoirs Less Depr.7.esrve -Office. _Equipment Less 7eor.:?.eserve Thols LTachinery Less 7e-Dr.Restrve 1 -isc. Equipment Less TDepr. Reserve Intangibles: Priorities - 7Iter 14,726.04 6.47 10.00 $14,742.51 250.00 6,511.80

1D6

A° 21,640.80 419,200.00 65.00 19,565.00 92.80 2,150.83 - ,1,132.15 -r,,, /,-, - _{iCy•GO 951.47} •-' - -3,159 077.84 - - 212,400.00 2,802,677.84 292.30 108.44

_{_}

_183.86

600.76

525.0. 75.73

516.94

-

_{421.06 97.8 2,806,137.61}

Rights -100.00

0

•

•

•

THE ,\ToaT7

PCUDRE

iaaIGATIc

BALANCE SHEET STATELITT

DECMrETI).. 31, 1945

LIABILITIES A 71-1 NET ," ror., Tr,z„. Current:

Accounts Payable - 7T.C.Wood

"

Scurvin Ditch

_397.75

Accd. int. Mortgage - - •••1

597.89 $1,595.64

Fixed:

:Tote

a

Mtg. Wichita Bank for Cooperatives d. 11/1/36 due serially. Int. 3i5 J-D 14 Accrued:

Taxes Accrued - t

Capital Stock 10,000 shares 50.00 par value - Mk

P2emium on C(vital Stock -Ca-oital Surplus Surplus arising frog asses.

on Capit71 Stock

Oeratin: Surolus Deficit 171/45 Less Adj. Depr.

L:',d Loss 1945 500,000.00 3,450.00 2,676,017.01 405 803.4 3,767,3 0.4

568,963.2s*,

18-.00

369,700.00

1"•r."

c,5664,77 .29

15,415.15

3,001,107.04

$3,392 536. 21

•

•

•

M777 _{17,72,TF PCUME IRRICATIC1- COKR=}

..?-11D DTEIDITUTE S TA Ei7.2 JANUARY 1 TO DECMIER 31, 1945

Assessments Pfd. Rights Fossil Creek

-Old Right Leases Transfer Fees Water -Rental Water Assessments Misc. Income Operating .7xnense: Ditch Riders ma •

Gate Tenders (1 Watchman Water Assessments ea am woo

II= OM ••••

,)3,899.01

1,560.6

564.3

Maintenance Expense: Labor _4,997.26

Materials a: Supplies _ aro ••• ••• 1,014.42

Buildings L Structures- - - - 118.30 Machinery

a

Equipment - - - - 553.22

$37,400.00

60o.00

25.00

700.00

62.00

180.00

105.00

..L-, ••))7r-_

0

06

,.„

"

,)4• 6,663.20 $39,207.00 .general Expense: Salaries - Officers 7,039.00

Directors Per Diem 273.15 General Offioe Exp. 794.90

Legal _576.00 ?.ent _{LL:ht 312.24} Taxes c insurance 397.11 Telethone 3: Telegraph - - - - 414.44 Leases

_{96.66 9,903.50}

22,610.76,

•

a

•

T72E NOaTH POUDRE IRRIGATICIT COVPSCY REVENUE AND EXPE:MITURES STATE=

JANUARY 1 TO DECEI= 31, 1945

Net Operatin ?rofit Forward

_on-Operating Revenue & ExDenditures: Interest Received

Dividends - (A.1 & Gas -

-Commissary Sales

Ooen inventory ,1187.16

Add Purchases 3.78

$10.54 Less Closing Inventory - - 136.49 interest Paid

Net Gain Exclusive of 7elot. Depreciation :Marged for Year Net Loss for Year

2Q7. 22 6,087.07 316,596.24

6,385.19

22,981.43

co

14,08f1..21

896.68

24,71.83

•

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THE NORTH PORE IRRIGATION COMPANY CASH STATFITENT

JANUARY 1 TO DECEEDER 31, 1945

RECEIPTS

Opening Balance Jan. 1, 1945--- $ 141617.52 Assessments 1944 $ 51 342.75

Assessments 1945 651988.20

Assessments Fossil Creek- - -

600.00

Assessments Old Right - - - - 25.00 Dividends Gas and Oil - - - - 6,087.97

Interest 297.22 Leases 400.00 Rentals 36

9 69

300.00 Transfer Fees 62.00 - iater Rent 285.00 Refund - Insurance 54.00 Refund - Telephone 51.85 Lliscellaneous

1at.P0

79,628.90

94,246.,1

DISBURIMITS Accounts Payable -36-9-69 _ _ _ _200.00 Commi6sary _3.78

Directors per Diem- - 273.15

Ditches & Reservoirs:

riaintenance 4 1901.87 Laintenance L.ichigan 11 351.44 Ilaintenance Yiachinery 6: Equip. 553.22 Operation 51433.01 Water Assessments 564.38

Equipment 175.00

General Office Expense 794.90

Interest on L:ortgage 141 149.96

Legal 576.00

Notes Payable Mortgage 40,300.00

Rent and Light 312.24

Salaries 7109.00

Taxes and Insurance 313.38

Telephone 477.11

Real Estate Purchased _ _ OM OM.

....

-79 1 569.27

Less Telephone 10.82

Commissary . 54.45 61,27 79,504.00

,-Balance Cash Dec. 31, 1945- - - _14742.q

41/ Consisting Of: Cash in Dank _{141 726.04} Cash in Till _6.47 Petty cash _10.00 14,742.51

• • 400

7.:ichita Bank for Cooperatives. I.ortgae Note

11/1/36 due Ser-ially, Int. J-D14.

THE NORTH POUDRE IRRIGATION COLPANY LORTGAGES AND NOTES PAYABLE

DECELBEE 31, 1945

Balance Balance Balance ACaRILT4 INTEREST Balance _ch_ 1/1/45 Paid

1.„?131/

.11

1/1/45 Paid Accrued 12/3114

$432,200

$389,700

663.10

14,084.75

_597.89

2/12/45 7,200 76;Z:53 5/10/45 11/15/45 2/12/45 Stock 400. 3/10/45 4,600 3/10/45 Stock 300 3/19/45 5,700 3/19/45 Stock 300 4/7/45 5,700 4/7/45 stock 300 4/13/45

3,700

4/13/45 Stock 100 500 4/20/45 4,200 4/27/45 4,000 4/27/45 Stock 200 10/17/45 5,200 10/17/45 Stock 00 '4;432,300 42,600 $5g 1700

_{663.10 14,149,96 14,6734.75}

_597.'89

-1111.•••••••111..•••••••••••••!•11...11/.1.•

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THE NORTH PCUDRE I=GATION COLTALY BAITK RECCI:C ILE" =TT

DECELBER 31,1945

4110r41110.11111...

Check Zo. Amount

Our Balance ,14,726.04 Checks Out 18427 4;30.00 20981 17.02 2372.1 .19 24674 25.00 24676 21.80 24678 13.65 24679 6.00 24661 125.40 24689 4.55 24691

15.95

24693 97.00 24694 150.00 24695 350.00 24696 23.00 681.56 Bank Balance _,15,607.60

0_5,607.60

••••••••••11mma...••••••••••••••••••••••...

ANNUAL

uniir

T7C-R.T

NORTH POU'T' CO.

Suite 210 Alpert Block Telephone 613

•

•

•

4nthony Nogeti,

Ph.

2.

REGISTERED ACCOUNTANT

FORT COLLINS, COLORADO

January 24, 1945 JIT'3 1F:

TIP-1 PO U-7117

711.7-il 310 1944 4.400141111.4.

To The Board of nirectors

The North Poudre Irrigation Coxpany Fort Collins, Colortlio

4eAleaten:

,ave examined the Balance ,:41eet of The North Foudre Irrigation Company as of December 31, 1944 and the statements of L)come and Z41rp1us for the colander year then ended, have reviewed the system of internal control and aecountirv procedures of the company, and have exal:.•j.ned or tested records of the colloany Tid

other

supporting evi-iience by methods and to the extent we

deemed

Appropriate.

Cash in bank was reconciled with a:.!ount confirmed direct to us by the depositary and petty cash

was

counted.

Investments in ,:tock and Ditch Companies as shown by company records were examined by us and found to be in order. Jtook in the licLita Bala For Cooperatives WRS

verified by direct confirmation by the Bank as of December 31, 1944.

F-,cords pertainin..; to capital stock issued and Fossil Creck Preferred Rights were examined by us mad found to

be

correctly stlteds

So fnr a3 a3certainable a4 so far as shown by the books of the company all outsets lad liabilities at ')ecember 31, 1.944 are reflected in the accoanying Balance Sheet.

The disbursements durin;. the year alive been veri-fied by examination

of

111 cancelled checks returned by

banks, journal voucher

and

receipted expense bills* The recorued receipts have been traced as dep3sits in the bank account*

S

We have satisfied ourselves that all incole from assessments, water rents, preferred rihts, royalties and leases has been pronerly accounted for.

On the above basis, in our opinioh, the accorlpany-ing Balance Sheet a-id related statements of Income and

Surplus present fairly the positimi of the North Poudre Irri.;ation Company at December 31, 1944 and the results of its operations for the calendar year, and conform to generally accepted accounting principles applied on a basis consistent with the preceding year.

Very truly yours,

egis ere ccoun ant

BALANCE SH7a

411

Cash, ,14,617.52:

•

•

Cash on hand consists of a balance in trie First Nati -)nal Bank of $14,595.35, cash in till, $12.17 and petty cash, lO.0O. The total receipts for the year were $21,766.03. The disbursements for the year a ounted to ;!.65,511.14, leaving a balance at the close of the year of $14,617.52.

Notes Receivable, 0250.00:

The only n-te held by the company is one given by W. A. Vance in favor of the Yountain and Plains Irrigation

Company. No payments have made on this note during the present year. Interest is paid to April 21, 1944. This note now bears 5% interest and is secured by 4f shares of Gilmore aeservoir Preferred Rights. It is our opinion that this note should be collected.

Assessments qeceivable,

There remains at the present time unpaid assessments for the year 1944 in the sum of $5,342.75. This is :.ore than $1,600.00 less than the amount due one year ago.

Commiosary Inventories, $187.16:

It was entirely impractical for us to make a physical inventory of commissary supplies on hand and the amount being relatively small we have accepted the valuation as given to us by the company.

Stock in Wichita. Bank for Cooperatives. 321,700.00: This stock has been reduced from $30,500.00 to $21,700.00 during he current year. This is in

conforlity

with the net indebtedness to the Iichita Bank.

Stock in Ditch Companies, $65.00:

There has been added to the stock investments for the year one share in the Poudre Valley Rural Electrical

Association amounting to $5.00. ks previously stated in our report the vnlue of the stock carried on the books has no relationship to the market value of these shares.

Prepaid Tilx':ense, tr7.00:

The amount of expired insurance at the close of the year w%s ,.;27.00. The President ind 3ecretary are properly bonded for 410,000.00 each. Liability and property damae insurance is carried on both the Ford coupe and the International truck.

•

The house at Fossil Creek is insured at $700.00 and this policy is deposited with the ichita Bank For Cooperatives. The other policies includinj sta:.e compensation are on file in the office.

Ei3.2g_22.2211t_124§22L228.611

During the year the buildinc.;s on the school section were repurchased for the sum of ,1,000.00 and a house sold

for $200.00 resulting in a net increase of building of W0.00. Regular depreciation was accrued on all depreciable assets of the company.

Intangibles,

4 45,100.00:

Priorities and water rizhts are carried on the books at $545,100.00.

Current Liabilities.

wl,b60.85:

Current liabilities are cmiposed of 000.00 balance due 1. C. lood for building purchased, $397.75 due to the

stockholders and the Scurvin Ditch and accrued interest on ,lort-gale of $663.10 or a total of

$1,660.85.

111

MorVacre $432,200.00:

During the current year the company has been able to i:Ake a very substantial payment upon the mortgage indebtedness in the sum of $53,500.00. This increase in mortgage payments was due lar_ely to water sold and to the reduction of stock in the Wichita Bank. The company w -s very fortunate in being

able to make

so lar_.e a reduction in its indebtedness which now amounts to $432,200.00.

S

•

•

317:31JLT3 OF OPERATIONS

the beginning of the yelr an assessi:ient of $7.25 per share was levied upon all the stock of the company which was allocated as follows:

;=rinci-,11 on Yortza:e Note $2.61 $26,100.00

Interest 1.65 16,00.00

Operation, l!aintenance, etc. .L.92 29,30.00

Tollage ?00.00

Iziai

$72,500.00

1944 Assessment 150 Fossil Creek

Preferred Rights

$4.00

600.00

1944

Assessment Old Right (Warner)

It is to be noted that of the above itelus the

assessment of 26,l 0.00 has been credited direct to surplus as being a capital rather than a revenue item. The remaining portion of the assessent amountilig to 446,400.00 is included in the revenue statement. Fossil Creek paid the regular

$600.00 assessment. Another item of unusual inte7v,-t was the sale of water in the amount of 413,120.00. Lease;.,, pr(x4uced an income of i0350.00 which is 4100.00 more than was recetfed fro that source during the previous fear. However, the 1.treat

Western 311ar Company did not pay the usual rental of 411100.00.

The

gross income for the year as outlined abofe and including a few miscellaneous items amounted to

$0,6„:2.50.

Operating and general expear;e .ounted

to 323,9'7.19

as col-J)ariF!d with $25,675.04 for the previous year. uring the past year there

has developed a revival of interest in oil and the coEpany received royalties fro two wells with

a

third nearing produc-tion. These royalties received in the in nth of Decei:Ther amount-ed to $2,341.53 resulting in a net gain before depre-iation of $3,155.24. The regular depreciation is set up at 24,403.82 resultir.7 in a net loss

for

the year $1,247.88.