Audits - 1940-1943

R.NNUAL AUDI T REPORT

NORTH POUDRE IRRIGATION CO. DECadBER 31 1943

Suite 210 Alpert Block Telephone 613

Ignthony Noget3,

Ph.

B.

REGISTERED ACCOUNTANT FORT COLLINS, COLORADO

January 17, 1944

3R-

Rf

TW,

Nt4T8

'OUrelerttCiP4,UY

VKLI7

_{Ile 1943}

4110411111.41"1111414.

to Th. Beard of lireetoro

The north 'Noire Irrigation ‘iossily

l'evt lollines *olorado

lentlaseas

we hove owined the Belabee lhet of The north

*vottre Irrigation *!p

as of Peze. ter 31, 1143 as the

stootements of Those* and Surplus for the ealaor

rear thes

end

hove reviewed the system of internal oestrea end

41w:oust4ng, prossOurs of the %avow, mn4 hove ennstaed or

tested 'words of the lempany end ether suppertIng evidence

by methtpis eid to the extent we 411043 eg'nvolPriatell

lash in Wok yea resonsiled with emesot eontlred

direct to us by the depositary and petty seek loos emoted*

Investment* in steak end dlt-lh

snLee as sham

Or *,,lempeolr resordelmum, exaolued by us aad fAiil to be in

order*

Tiook in Ths Itiobits Mosk for :NmperetIvis was

vivified

by

direst seritimation by the beak as Or 44o4raber 11.

11434,

140410010 pertaining to copilot stook Aimed and reeeil

Creek preferred right* were essAned by us ea.

toned to be

*orris/AU etittods

So for as oottertoiaable end so tAr as show by the

books of the ":tr:pflony sal emote and liabilities at Dace bor 31.

1143 are refloated in the eeeempanying Melanie Ibeet•

The dieburso.euto darlail the year hem been verified

by **AterrfilNUM of oil 0411100U0i *beaks rv tumid by beaks,

jvurnsis volastisre and roeel ,tN4 WINO* billo• "Is reeordsd

rwoolAs hove beel trailed es deposits In the beak sesotelts

S

•

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

n the above basis, in our opinion, the accavanying Balance Jheet and related statements of Income and 3urp1us present fairly the 2,Atition of The North Poudre Irrigation lompaqy nt lecember 31, 1943 and the results of its operations for the calendar yertr, and conform to generally accepted

accounting principles applied on a basis consistent with the preceding yenr.

•

EATANCS

amnT

Ca ha 164963:

-ash on hand consicts of a balance in The First

:Tational Bank 414278.71, cash in till 43.92 and petty cash ;10.00.

The total receipts for the polar wore $63,056.16. The

disburse-ments for the year a.:.ounted to L;77,568.b2, leaving a balance at

the close of the year of ',6,362.63. 021

lie only note held by the Company is one given by w. A. 'lance in favor of The -ountain and Mains Irrigation o. and endorsed by thee to The lorth "oudre Irrigatton '.:ompany. No payments have been mevle on this note for the present year.

Interest is paid to 'L.31.1 21, 1143. This note now bears 5%

interest and is secured by 4i shams of fal:iore leeervoir

,)referred rights. It is our opinion that this note should be

reduced.

i42.92.2-21114.:11elv b19, '11.004W:

'There remains at the present time unpaid assessments of 1942 in the sum of 676.1? and 1743 6,926.36 or a total of

100443.

gpmissarY OventorY. aN:=.661

:e inspected the detailed inventory

of

supplies on

hand as sub6itted to us by the officers of the %-mpany, but Ad not make any personal verification of the physical inventory

due to the fact that the olount is cocparatively small, and being

located in the mountain region, the cal) is inaccessible at the

present time.

Stock hi B for tive 0 00 00

7o changes have occurred in this account during the

current year, the stock being hell by The -Ichita Lank for looperatives as additional security to the loan.

nook in 74tc3 'Yompanisolk 400.00s

Is have listed all the stock held in ditch com7:Inies and found certificates to be in order, but the value as carried on the books probably has little relation to the market value of the stock.

repaid ense, 1256.33,

.110 amount of une,cpi,bed insurance at the close of the

year was :,256.33. Insurance is carried on the house at ''oesil

lreek for 4004000 and public liability and proAprty damage is

carried upon the two trucks. 'late 3ompensation Insurance covers

all labor of the co pany. The president and secretary are each

S

•

-ixed utimetsi a4,851A694,43:

very few changes have occurr4d in the fixed assets. uri.ng the year a compressor was sold which reduced the net lv,ount of t,.,ols and mnchinery listed.

TntopgAblv,s. :545.100.001

rioritien and water rights are clrried on the books at S545,100.00.

!iabilities -lt

The 3ourvin -itch account remains the same as two years ago at 4317.75. This accuunt can only be reduced as the old stock is turned in. The only oth6r current liability is accrued interest on the .t,ortgn4e of 491.76.

:ortAae 4ti5A700•901

:uring the year the Company has been able to make a very substantill payment Lion its .r.ortgage iadebtedness• The amount ;)aid dufl.:Ag the year on the mortgae was 5050000 and in addition to that the Company has paid 46,500.00 upon itc current IndebtAdness to The 7iohita Bank for Cooeratives, which paid up the current loans in full.

•

•

'LT At the beginning f per share was levied u-3on nll

s allocated as followsl on "ortgage -ote - rincipal on 'tvrrent Note Intereat

Total aintenance,

0 771=TI(*73

the year an assessz.ent of 4,84100 the stock of the Arlp:ny which

216M1111111111 ra5,100.00 6400,00 17,700,00 28,000.00 700,00 '80000.00 UMMUMWWWWW

it is to be rrAed thnt of the above items the assessments of $25,10000 and . 43,500,00 have been credited direvt to surplus

as being a car ital item rather than revenue. This leaves

balance of ::46,400,00 which is included in, the levenue state cit. rossil !Tsc'ek paid Vie usual :400.00 assessment. f'thr A.seellaneous receipts aside from interest bring the total revenue to 47, 585.00. The operating expenses for the year were 6,797.64 as co?.Dared

with :':14,10.63 for the previous year. The greet difference in the t-lo years is due to tollage which was practically :.?,000.00 higher in the pevious year. The maintenance wns '1710,11g:4.12 which was about $3,700.10 lower than the tilount last year.

General rIxpenses we a little hi.,:her than the previous year being ,5654,26, Interest received avouted to :307.66. The sale of the compressor Shows a gain of $100,00. The commissary shows a lose for the year of 3c14.1. Intere:A %gut paid promptly upon all obligations and amount to 01,356.52 ror the year. The not .e•

from operltion for the year exclusive of derreciation was

';4,52.95.

The depreciatiln charge fr the year evounted to •24,436•52, resulting in net book loss for the year of $1'4563.57.

•

v:17. Notrit --"ou--,17

"li 'VT ; 0 :'NY 11.1LAN.17: TIT:7

n11,17!'137.1 31,

1943

A`35rIri "urrImp

lash Amt. National Dank-!ash in Till

-'etty 4110 40,

iotes

neceivable-`.eaesscenta leosivable 1.')42 ,aseaa eLts iseeivable 1143 lo:LmisaarY InventorP°

Inveztents;

W

flock in icialta Bank Soo looperettvee

7tock in vther oani es. 'IreofW x..,ense;

Ineurfince ixti .soetIss

-Itches and •teservoirs-7,ecas ',spree. enerve

.41 Sit.

Buildings and MaterialS Loes$ 'lepreed, leserve Office 7quipwent. -Less: Reserve 411 W 4810 Trinsportation 7quipment-L4GEIS %eserve

Tools and achinery -Lesol neprec. oserve

Ascellaneous Equipment Less: nspree. Reserve -7ntfingib1eas

,,;ci,48•71

73.92

10.00

4;76.17

6,140.36

8,

362.63

250.00

7,)04.53

1-20.66 15,815,82

30,501.00 "1.00 .315,077.84 465,600.00 2,841,477.b4

tviorities and

'later Rights

$14,5.24

13,370.16

:.117.30 /6.23 400.70 312.15 675.78 403.67

$556.94

370.36

1,515.08 41.07 14V+75 1U.11 30,560.00

256.33

'2,6;1,02.43 4J,10000 3,443,334.55

V14,1 o17,o I 3 C9 L7‘.1://7ki

30

-fro,11 6,,341 rC 1' 11,C 3,0( y

10144

7Y1.11

Nr-erH "t1.7117-71 T177"!ATIeN cornm. BALAN17 T".-"'""7"-T

1743-B711 31, 1-7N4

ANn TNT •

"'TR

411

7.urrentj

Accounts -Arable Sourvin

_4)7.75

-Itch

41,crued interest -ort;s _{171.76 11,1041}

.1:12raii.

Note gind -ortgage lichita Bank for '.70.0 'eratives d 11/1/36 due serially, Int.

ti-rw

14-

--et 'forth:

p1ta1 ;tack 10,000 Mares 111. Value

-remium on (.:anital 3tooki. 'arAtal 7urplbs sr Op MI 410

SlurplUs ari3ing from

Assissents on la74ta1 3tk• 'pirating )wrplus 54t,,131.“,4 Idit Loss 1943- - ,5t;34, 7

•

4G5,700.00 500,00Q.00 4,450.00 , 4676,017•01

144,

613,!V

3,5c:4,160,46 567,715.41 a,56,445.07

443,334.58

•

tt :"71117.117 n311.4.1717r1T 0"- NY 17-1713'7 7X? 7ornITIJ .717" 3V;7. 1 V) 117.71.134_711 31, 1943 enup 4sess-4ents-'referred Aights Iraok-1:ransfer 741.41. ater TORSOS -tscellaneous Income 41111. 60 40 44, 60 44 41. 440

La.ziLLILLnasalls

itch iters

7ate Tender and Yatehrian %.sseasr.enta -fitter tock

41. 46 4.6

intenance '‘x;-,en fl a:

Labor.

-raterials and 3w)r1ies 7144111pr

40 40 410

leneral -x')enees

lalaries Officers--1.reetorts 'or

lenorml fTfice z; ene

Legal-nantal and Light Teloohons. Insurance ikuditing 60 Taxes Leases dlo 44 44 40 410 4OP MO 40 010 fob 410 40 40 40 40 4/0

!3,531.63

1,506.4 4224.75 731.02 $5,7'62.78 3,450.6b „A.39 t74.07

„it.6,4no.00

660o

4ioo

.364woo

lea.®

40.00

9.00

,47,5c5oo

(.,f7n7.64 10,112.12 5,50.00

753.0

-,(11,78

312,65

pool.

171

6..

j:

;6.40

107,16

o,5b3.28

25,695,04

a

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•

Th

trmrrH Poun.

.17.17.113A

r i7.1t '7" strty inr1Anncwrrtrr

J1..1TCAilY 1 TO "1371 31. 1943

77et Onerating -rofit Forwar '- 21,889.16

eriatirtiv -".ev9ault -4.;enOt14rItip Mnterest qeceivcd -?ale 7=-Ita1 70..ztiseary Sales-' ening inventoryurchases W L4v,,n11 71oe:ng Inventory. t.00se 7om.issary. Tnt-ripet

paid-7et Clin lxcluaive of -neprociation charged

for Year- - e rat Tioes f• re Ysar.

op IP OP W *IR ;347,49 1134,72 441.!71.

le?8,66

307.66

10000

.M.62

34.4.3;

- &&•15

17056.52

17,444.67

4,652.95 * * W 24,436.52 W ft

.1C7

'71timmuml;=.

•

4rwMTITH

r'Ottn".7:: I1AIGAT7 ("7 Mr- ANY

1,321 ATEE

VItri:IY 1 I" rr." 7,'S" .tri 31,

1943

.04104,01.4.0,

3T1CrIPTS (;pening Balance January 1, 1943

Aesegemente 1941 4Setements 1942 *seesments 1943 ,isessmemAs lroek Assessments . 1d light Interest 4. -Income, Alicollaneous-!Amass -3ale of7luipment-Transfer Fees-Aefunde-General Expense-Refunds- IlmwAssary-Refun'- ain Operations-riefumis- '7urance-7ater et.. OIP 40 40 mos 41* fa 4* OF ail; 40 4,10 4111. 40, IMP 441k IND .. dip 40 IMP MO

37,00

7,09.85

73071,64

600000

^0

307.66 82.00 4).00 400.00 36.00 2,00 1.90

g26442

3.64

49.00

42,815.21 Q3,06.16, N35,951.45

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s (lir rztT " 3. • ,..01 ANY: 11 ,.4, ASH (;24.41.,'-t177':-.. •""."-,1:41 "err* • \ rirrrv,B1 •.•.% 31, 1943 1-00 =wire -"viva 4.4 a. pi

2a1ance lash larried Porward. . 84,951.45

rlrectors -er -1.11E:1 - . . . . _,202.0.0 193.72 A.tolleit and --eservoires

J.71intenanao . 4. - - - - 4°

59635.38

raintenaive 73 teeervoir 2,343.73

YrAntennTv!0 7quipT.;ent . - 674.07

'A.chigan -Itch . 1,5A.24

5,101.d7 r%41reition - dio EIP op 4AP Op ao .

i'ollage - -. - . . . 731.02 Atch 4Osises:01.4ta . - . .. 623.75 General 7xpense - ! II Oa ! ea

83d.39

7nterest.'7urreat . - - - 117.44 Interest.-o: 17,305.71 Lew: 36.9.69- - - - ! ell f. ! 107.16 Legal -iswellaneouo . . 700.00 Not°. - - . . 4,500.00'4yablo.ortie Notes Myable-lurrent- . - . 8,500.00 aent rint1 Li4st . 40. d• es a* Eat all 312.65

'.;alary . . . . -- - . 5,569.00

Taxes and Insurance. . . .

lik68

TeleIi- nne

". 2ax "eturned- - - . - - 36.87 . ,

.. _FM .* . ... .• ! ! ! ,571:02

Loess Iredits wit or

Naan.le 7asal necenber 31, 1943 ofs •h in Bank-*asi In Till-etty '"aekt. !a 4111 O. OP .1111 10 •111, 76,483 )4

7225,36.82

8062.0

276.71

73.92

10.00

'3

4

9

362 63

e sonr,'

T.Pr-

"(.77.1

ht't7

4,173

•01^

"

r.ri•Ariter

7Y1-; IT' 31, 1943

.71

lance lance Balance

4 12/3V4,I 4 _ism& 14/11/4 I

lehita Bank for

:ooperativea. orte ':'ote 11/136 due '';er-iel_ly, Int. J.!314 3i .:$11, ,)0.00 _{:,',4-5•700}

_{,,',633.32 .,:-.43,762.66 .17,264.3.5 ;791.76}

13.4

(.4 5434'03 3/23/43

_:3,200

3/27/,43 400 3/,_,30/43

4,600

4/:14/43 1,000 4/27/43

5,000

4/30/43

5,000 4/30/43 2,300 511,2(,O.)0 .25,51'n 415,700 _{::833..42 17,305.71}

.17,264.15

7711.76 I 6/42 _{4' ;•j-:;* '} z120•34 4/15/43 )•;.'c (.*:.6.4 Z,40•30 4 1 43 1,42 4i It C:C)0 4, ; 0 4.73 _C.71 :5 07 10/7/43 _,50 4.92 4111101.006....11MID

500.

n0 *t8, 500

25.07

117.44

$92.37

swop..

THE NORTH POUDRE IRRIGATION CO. JANUARY 1 TO DECEMBER 311 1942

H. WINFIELD ROGERS, R. A. TELEPHONE 613 Associate • •

•

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ANTHONY S. ROGERS, Ph. B. REGISTERED ACCOUNTANT

Suite 210 Alpert Block

FORT COLLINS, COLORADO

January 2, 1943

Aunrra4ss W.Pr.ar

17171 grfrrrF Pounix

IiiRITAATICII COMPANY

!AMBER 31, 1942

To The Popr.-1 cf 'Am:tors

The North ?mare irrigation *Mew Fort Collins, Colored.

nentlemen:

have exa:Aned the Balance 'Sheet of The North

7oudre 7.rrigation !,lompany as of ''`ecember 31 1942 and the

ittate-Jents of Income and Surplus for the calendar year thee el7kIed., Lave reviewed the system of iatermal control and accounting procedure of the lompany, and have examimed or tested recorde of the Ceppeny arid other supportiug widen*. by methods and to the extent we deeaed appropriate.

!:ash in beak VAG reconciled with amount confirmed

direct to us by the dPpositary and petty cash was clunted* Investments in stock and ditch cm:Taniss se shown by Company records were examined by us and found to be in order. :tock in The Wichita Bank for Cooperatives wee

verified by direct confirmation by the bank as eir Deeesber

31,

1942.

^lecards pertaining to capital stock isimed and Fossil Ireek preferred rights were examined by us and found to be

correctly stated*

.3-0. far as ascertainable and so far as shown by the

books of the lompeny sal assets and liabilities at ',member 31,

1942 are reflecte_t in the accompanying Balance Iheet.

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

Journal vouchers and receipted expense bills. The reeorAod

•

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e have oatisfied ourselves thfl.t

all

income from asse3sments, water rents, preferred rights, royaltit4 and leases has been properly accounted for.

1m the above basis, in our opinion, the accompanying Enlance Meet and related stAtemants of Incol.le and 'urplus present fliirly the position of The North Poudre Irrization Company at December 31, 1942 and the results of its operations for the oalonehr ye,', r.tnA conform to 3enera4y mecopted

accountin.: principles Applied on a basis consisUnt with the precedinj year.

Very truly yours,

S

•

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BALANCE

'314r7,17.T

Cash on hand consists of a balance in The First

National Lank $2,884.74, cash in till .7.55 and petty cash :10.00. The total receipts for the year including '48,500.00 borrowed

money amount to 40,96941. The disbursements for the year are

M19,033.33, leaving

a balance at the close of the year of ;2,895.29.

Notes leceivable,

The only note held by the Company is one given by 4. A. Vance in favor of The '-ountain and Plains irrigation Co. and endorsed by them to The North Poudre Irrigation Company. No payments have been made on this note for the present year. Interest is paid to April 21, 1941. This note now bears 5% interest and is secured by 41 shares of ,111.1ore Aeservoir

preferred rights. galls we consider the security ample, it is our opinion that this note should be reduced.

Asse 3 sments

There remains at the present time unpaid

assessments

of 1941 in the sum of 437.00 and 1942 $7,666,02 or a total of $7,723.02.

21.

00111SEY.IMIDISTA..iii7taL

We inspected the detailed inventory of supnlies an hand as submitted to us by the officers of the ::ompany, but did not make any personal verification of the physical inventory

due to the fact that the amount is comparatively small, and being located

60 mile3

distant in the mountain region, it is inaccessible at the present time.

took in Achita Bank for Cooperatives. 130,500,00:

No changes have occurred in this account during the current year, the stock being held by The -ichita Bank for

Cooperatives as additional security to the loan. stock in Jitch opesj.t0.00s

We have listed all the stock held in ditch companies and found certificates to be in order, but the value as carried on the books probably has little relation to the market value of the

stock.

Prepaid racpense, 1170.21:

The a,ount of unexpired insurance at the close of the year VOW $170.23. Insurance is carried on the house at Fossil

reek for 400.00 and public liability and property &maga is carried upon the two trucks. Aate Compensation Insurance covers all labor of the Company. The president and secretary are each

zuga.4epetEL_AakialielL

Very little change has occurred in the fixed assets during the year, with the exception of the purchase of certain

water ri;-,hts which have been Wed to the invested

capita143,000r-This purchase pertains to the ri.,;ht, title, and interest of the Denver Joint Land Sank of Denver in an to the us* of water froul the ditch and reservoir system of rhe Yorth Poudre Irriaatiou

._{-7c)s zwhich watfr has heretofore been used for the irrialtion}

of 3 ,ny

4sin the Xft of Si of section 14, Township 6 North, Ramo

66 !7e8t of the 6 ',.1:411, Lorimer :ounty, Colorado. These water

rights were evidenced by agiemento made by the North Poudre

IrrIzation Company and sun _{individuals on, July 17, 1 •}

November 15, 1917, July 13, 929 and Novezber 1, 1929. The warranty deed received by the Company re conveys to the Compaq, all of tho rights held under the contnista mentioned* including any right to demand that 3wede Lake be kept at any certain level. pitiagibleap 4450.00,001

Ion ties and water ri4hts are carried on the buoks at t545,100.00.

71.21-riTlt Liabilities, .10716.141

The scurvin nitcl, account remains the *awe as one year ago at :397.75. This account can only be reduced as the old

O

stock is turned in. It has been neceseary during the year tone5otiate wIditional loans with The lichita Bank tor :ooperatives in the amolmt of J4500.00 with :L14000.00 authorised upon which interest is computed at 21%.:. Accrued intorest on the mortgage from the last inteeest pay date to the end of the year is 033.32,

and the accrued interest on notes E.25.07, resulting in total liabilities of 1'1,756.14.

;',L2ri

wws

7)'1:rinz the year the mular installment of 411,900.00 was made upm the mortge leaving a balance dist at the end of the year of $511,200.00: This mortgage drams 3fg interest.

S

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Ttrqttrri Nr` r )1 1 %TT 4

At the baginning of the year an aimessment of :44,25 per

share was

levied upon all the stock of the Colupnny which was allocated es follow

Intflrest on L?ortgage note ''rincipal Cue on mortgage

Tolln,71) .. _..

raintenance and Operation

:1 81 a6,100.00 1.19 11,900.00 .45 4,500.00 2.60 26.000. 464,25,

_Ati22.qi...

arawrari...

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

411,900.00 is credited direct to surplus as beini. a capital item rather than revenue. This leaVes a balance of 4z50,600.26 which

is Lac ' in the Aevenue Statement. Fossil :reek paid the

usual .00 assessment. other miscellaneous receipts bring the

total revenue aside from interest to 01,961.78. The operating

expenses for the year were $14.900.63. The largest it in

*'pimmittisr, expense was tones, which amounted to :9,720.46. The

Company WAS _{unfortunate in its cost of maintenance fcr the year}

which totnlqd 13,865.50. The general expense was about normal at

t7,325#73.

Interest received amounted to $252.67.

though commissary rates were raised to $1.50 per day, nevertheless the commissary showed a smell loss of $30.74. Interest wris paid

promptly upon all obligations in the sun of a8,036.:23. The net loss from operation for the year exclusive of depreciation ems .3,944.36, which certainly is a very :.00d st.owinE considering the

unexpected damage which occurred on the ditch. The depreciation

charge for the year amounted to $44,461.47, resultine in net

•

THF N'RTH Pnnir IRRIGATION' COMPANY BILANC" SH711T 7TIM1STNT

31, 1942

Current:

Cash First National Bank Cash in Till Petty Cash 40 Notes Receivable 40 ND Or Assessments 3eceivab1e 1941 ASsisaments iteceivable 1942 Commissary Inventory -Investment's,

3toek in Aehita Bank for

ooperatives *

-Aock in cther Companies 'Prepaid '..xpentiest

Insurance

41/

Fixed Assetst

4114

IN/

'Itches and ieservoirs

-Least 'Ispreciation Aeserve-Buildings and IcTrovements-Less: nepreeistion Assent** ()Mee Fluipment Least nepreeiation Reserve-Transportation tquipment Less* -4preciation leserve-Tools and achinery

Less: )epreciation

ieserve-Miscellaneous Equipment *

L44112 -4toreciation Reserve*

AM I. AO

Priorities and •'.'ater 'tights

•

$20884.74

.55

10.00

37.0o

7066602

3015,077.84

44;4400.00 a4.665.24 U*64.122. 1.17.30

$500.70

2.67,77

11,425,78

4400.19 _311.34

$2,895.29

250.00

7,723.02

,11,215.60

,30,500.00

6ogoo

30,560,00

170.23

$2,872 877.64

2,259,34

5,60

312,93

597.19

03.85 2,876,338.95

145.1o0.00

:::30463,384.78

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THE NORTH POUDRE IARIlATION OCKPANY BALANC3 3HT TATnY7NT

-.71r.cr13a 31, 1942

1110 QOM 4.41101111,

LIABILITIES AND NET TORTH aurrent

Accounts Payable :curvin nitch

:397.75

Notes Payable !lichita Bank

for Cooperatives

8ti000m

Accrued Interest ;:ortgago - d33.32

kccrued Interest Notes Payable 5.O7 0,756.14

Fixed*

l'ote and ortgagio Tichita Bank for 0operatives, netted 11/1/36 due serially, Interest

J

isiD 14 40 OP 4. 401, NO OD, 411

Net -orths

Capital 'flock 10,000 qhares ig $50.00 par value 4.

Preaium on Capital )tock Capital Surplus -

--511,200.00

i,500,000.00 3,450.00 4,676,017.01 Surplus Arising from Assess*

meats on 7apital nook • « 311,0 3.47

nparating .3urp1us neficit „521,705. Add: Loss 1942 - 41 40 op di IMP

26.425.

9

5

43,490,560.48 548,131.64 20942,428.64

.;3,463,3b4.78

S

levenues

THE Iran POUDRE IRRIGATION CWPANY REVTRUE AND EXPENDITar 3TATSEF,NT

JAMPRY 1 TO rm.:Film 31, 1942

Mae sent

Fossil ":reek Preferred ad Right -

-Transfer ?ees /ater lental

Leases

Oil and Gas Royalties

Miscellaneous Income OP OP OP OM 00 400 . PO .411004.1 or op OP

2tft.'

W 40 W ap ODerating "xpenses Ditch alders Ok 00 00 4110

Gate Tenders And latchmen Assessments later 3tock Tollage

altATI_AL2AITJIHMULL Labor -

Uaterials and 3upplies -Buildings and -3pructures Equipment

General .xpenses

40 . 40 .

. .0 40

lalaries Officers -irectors Per

TAem

3enPra1 -ffice -xpenso

files

3a1aries

(Barnes)

Legal - - ---aentsl and Light Telephone Insurance Auditing 40 00 OP 40. --40 OP OP

Net Operating Profit Forward

•

$3,462.42 1,384.00

333.7

2v...0 ti8,120.20 4,706.28 124.37 12.6-*4,764.00 204.65 209.20 410.86 652.74

315.37

40544

266.67

7640

. ,;5o,600.26 600.00 25.0.0 38.50 194.68 353.10 20.50

0.4,900.63

13,665.50

251,961.78

.32.73364091.86 z15,869.92

•

THE Roam POUDRE IRRIGATION CCr.PANY REVENUE AND XXPENDITURE ST 1-21411/-3NT

JANUARY 1 TO DECEMBER 31, 1942

40.11100011.611,010

Net Operatin4 Profit Forward

Mone.Cperqing,Rmvenue and W9nditureet Interest Received -Commisoary Ales $756.89 $15,869.92

252.6

$16,122.59

.•

2pening Inventory - -

.

.

.

1579.9

Purchases ... ii.

.. - - - I•6 41, MI

555.13

1*3.34.9a

TAGS

t '710111.143 Inventory . 347.29 787.63

Net Loss Copilicisary - MP WO *I

30.74

Interest Paid - - - - NO Oft IV 1§,q1Algi 16.066.97

Net Loss Exclusive of Depreciation 41,944.38

411

_{Depreciation. Charged for Year 244481.47}

Ret Loss for Year * . . . ... 4,26,425.85

S

•

•

T1V.

Nom

MIMS VRISATION VciH 2TATEUMIT

JANUARY 1 TO DIVEYWR 31, 1942

4R1 4141 0,11011.

itECRIPI'S Opening Balance January 1, 194.

Assessmente 1"41 - _ .... _ - . Assessment* 194:t - . - - _ . 4ssessments Fossil ("reek 1942 Assessments , id Rights - - .... Interest - - - 411 40

vlscellaneotts . . - . . . . .

, Leases .

Lease - . . 3641069 . . . . rotes PAyable 3urrent

Oil and 3ns Notes 4. - - . . . Transfer ?ees - - - • . . Refunds (-aintensnoe - . - . . Commis;mr:, _ - _ _ . - . . . Telephone . . . . . Insurance -No.

7

Lateral *to.ter Rental -▪ al OP I*

5,827.46

54,814.24

60000

25.00

252.67

129.74

265.eo

152,5o

8,5P;o0o

20.50

33.5o

111.59

1,65

2.51

15.68

17.79

1,74.03

958.91 _Mt Alai.

$71,928.62

TH1 NORTH POUDRS IRRIGATION COMPANY CASH STATISM!

JAMUARY 1 Tn MCF313711,

31. 1942

nISBURSTUTXT3

Balance 1ash Carried Forward 371,928.62

Director3 :sr Diem - - _ . . .

CommissarY - - - - ' - . - . .

Ditches and Reservoirs:

Waintenance 4 - - -

--aiatenance No.

3

leservoir-ftintenance -quipemtn . . . ichigan -itch - - - - . . . peratio.n .. 0 NO 0 41 To liege - 4 . . . "itch Assessments . .. . . General xpease - 4 Interest OP Legal 4 - - - 0 40 .

Rent and Light . - . . - - . .

S_{alary - - -} . . . - ..

Taxes and Insurance - . Olp 40 40 gto

III

Telephone -._{Tater ii4hts} .

.. . el, for ••• 0 411, op ..* 41. *1r 41IP ifilw MP

Less' Credits 40 0 01 410

Balance Cash December 31, 1942-Consisting tilts Cash in Bank lash in Till Petty lash

-•

0 40 • 0 apt 0 0 0 0 •m 4. VP 4

$204.65

555.33

7.953.21

1,481.32 912.65

3,839.31

4,701.42 9,720.46

)33.71

620.06 18,030.56 652.74 11,900.00

)4.5.37

4,o40.50

319.19

409.06

300000

$69,789.58

756.25 69033.31 .;21189.29

02,884.74

.55

10.00 _{$2 895.29}

hip

•

_•

_•

-ichita Bank for looperattves. !'ortiqge Note 11/1/36 due serially. Interest J-r, 14

31,- _523,100

1/15/42

4/1g/42

4/21/42

4/29/42

THE

Noard

PCUTIRF. IRRIGATION COMPANY YORTGAGE3 WO NOTES PAYABLE

ukrYWR 31, 1942 41100.-011, Paid Issued 1 BM. 42 42,100 3,000 3,500 3,300

ACCRUED INT7W3T _Balance atd Accrued 12131/42 •,511,200 !p852.72 a6,030.56 $18,011.16 $633.32 Nov. 6, 1942 2- 4,500 5,500 20.34 20.34

Dec. 9,

1942 2f 3,000 3,000 4.73 4.73 .104441.0111.1111.41111.1.111111110 '5 ._{23,100 S.11,900 -A1500 ;5199700} 2==== •"'"""""""""'`

,;852.72 4'141,030.a ',U8,036.23 W58.39

JANUARY 1 TO DECEMBER 31, 1942 FORT COLLINS, COLORADO

H. WINFIELD ROGERS, R. A. Associate TELEPHONE 613

•

•

ANTHONY S. ROGERS, Ph. B. REGISTERED ACCOUNTANT

Suite 210 Alpert Block FORT COLLINS, COLORADO

January 2,

1943

Aunrroms REPORT

TI[

r

NOgITH MUM?. IRRIGATIaff COVPAFY DECE15BER 31, 1942

4/.11111.0-OPM.4.

To The Bore, of "irectors

The North Poudre Irrigation Cal:wally rort Collins, Colorado

-e have examined the Balance -theet of The North :oudre Irrigation 'ompany as of ''ecember 31, i94 aaa the

statements of Income and 3urplus for the calendar year then ended, have reviewed the system of internal control .s.;.1d accounting procedure of the lompany, and have ereaned or tested records of the :lompany and other supporting evidence by methods and to the extent we deemed appropriate.

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

ravestments in stock and ditch coalpanies as shown by Company records were examined by us and found to be in order* 7tocl; in The A.chita bank for ::;Joperatives was

verified by direct confirmation by the bank as of -'ecember 31, 1942.

:tecords pertaining to capital to issued and 2ossi1 'reek preferred rights were examined by us and found to be

correctly stated.

30 far aa ascertainable ad so far as shown by the books of the Company all assets and liabilities at recouber 31, 1942 are reflect,ed in the acoompanyiaz is'ialance ;Aeet.

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 recei-ts have been traced as deposits in the bank account.

S

•

•

-le have satisfied ourselves th-t all income from asse3srLent3, water rents, preferred rights, rojalties and leases has been properly accounted for.

the above basis, in our opinion, the accompviying talance -heet and related state:lenta of Inca.e and 'urplus present fairly the position of The North T'oudre Irrigation Company at December 31, 1942 and the results of its operations for the calendar yew', P.M conform to enerally accepted

accountin‘: principles ap,aied on a basis consistent with the preceding year.

Very truly yours,

S

BALANCE SiirET Cash, •2,895.29:

Cash on hand consists of a balance in The First

National 7ank $2,884.74, cash in till

.55

and petty cash ;10.00. The total receipts for the year including 8,500.00 borrowed

money amount to $70,969.71. The disbursements for the year are

$69,033.33, leaving a balance at the close of the year of ',:„2,895.29. Notes Receivable, $250.00:

The only note held by the Company is one given by W. A. Vance in favor of The "ountain and Plains Irrigation Co. and endorsed by them to The North Poudre Irrigation Ooiipany. No payments have been made on this note for the present year. interest is paid to April 21, 1941. This note now bears 5% interest and is secured by 4* shares of 3i1,,ore Reservoir

preferred rights. 'hile we consider the security ample, it is our opinion that this note should be reduced.

Assessments Receivable, 7t723.02:

There remains at the present time unpaid assessments of 1941 in the sum of 37.00 and 1942 $7,686.02 or a total of $7,723.02.

22sEIETELIntrAmajag_1221

we inspected the detailed inventory of supplies on hand as submitted to us by the officers of the Company, but did not make any personal verification of the physical inventory

due to the fact that the amount is comparatively small, and being located 60 miles distant in the mountain region, it is inaccessbie at the present time.

3tock in Achita Bank for Cooperatives, -30,500.00s

No changes have occurred in this account during the current year, the stock being held by The -1.chita Bank for Cooperatives as additional security to the loan.

i-tock in Ditch Companies, ,60.00:

le have listed all the stock held in ditch companies and found certificates to be in order, but the value as carried on the books probably has little relation to the !larket value of the stock.

Prepaid Expense, A.70.23:

The ai,ount of unexpired insurance at the close of the year was 3170.23. Insurance is carried on the house at 2ossil 7reek for •700.00 and public liability and property damage is carried upon the two trucks. :tate Compensation Insurance covers all labor of the Company. The president and secretary are each

•

JA414_3112112i_11112.336,,,95:

Very little change has occurred in the fixed assete during the year, with the exception of the purchase of certain water rights which have been adL.ed to the invested capita1,413,000!°-This purchase pertains to the right, title, and interest of the Denver Joint Land Lank of Denver in and to the use of water from the ditch and reservoir system of The /forth i-oudre Irrigation Ca...pany which water has heretofore been used for the irri„Ation of lands in the Xi of Si of Section 14, Township

6

North, Rang*

66

Jest of the

6 PIX•,

Larimer County, Colorado. These -Tater rights were evidenced by agreements made by the North Poudre Irriotion Company and sundry

individuals on July 17, 1907,

November 15, 1917, July 13, 1929

and Noveaber 1$

1929.

:he

warranty deed received by the .ompany re conveys to the ,;ompany all of

the

ritOits held under the contracts mentioned, including any right to demand that Swede Lake be kept at any certain level. Intfn.V.Lless 0111100.00:

-riorities and water rights are carried on the books at !;545,100.00.

current Liabilities, b9,756.14:

The Seurvin Ditch account remains the save as one year eto at

:397.75.

This account can only be reduced as the old

111

stock is turned in. It has been necessary during the year to negotiate additional loans with The Tichita sank for Cooperatives in the amount of :8,500.00 with U2$000.00 authorised upon which interest is computed at 41. Accrued interest on the mortv,ge from the last interest pay date to the end of the year is „1,833.32,

and the accrued interest on notes ,25.07, resulting in total liabilities of

:9.756.14.

lortgages C5U1200..:401

During the year the regular installment of 411,900.00 was made upon the mortgage leavinj a balance due at the end of the year of 511,200.00. This mortjage draws

3i;

interest.

•

•

RIMUTS OF nr.NVrIQW,

At the beginning of the year an assessment of Z6.25 per share was levied upon all the stock of the Company which was allocated as followst

Interest on mortgage note a 81 18,100.00

rincipal due on mortgact 1.19 11,900.00

Tollage *45 4,500.00

raintenance and Operation 2.8089Q0. 2

04,25, ,62,500.26

It

is to be noted that of the above items the assessilent of

611,900.00 is credited direct to surplus as being a capital item rather than revenue* The leaves a bnlance of 4,)50,600.26 which is included in the Revenue 3tatement. ?ossil Creek paid the

usual i400.00 assessment. 'ther riocellaneous receipts bring the total revenue aside from interest to $51,961.78. The operating expenses for the year were $14,900.63* The largest item in rperating expense was tollage which amounted to $9,720.46. The Company was unfortunate in its cost of maintenance for the year which totaled ;13,865.50. The general expense was about normal at

:7,325.73*

Interest received amounted to ,!,252.67. 'ven

though commissary rates were raised to a.50 per day, nevertheless the comissery showed a *mall loss of t30.74. Interest was paid promptly upon all obligations in the our of -18,036,23* The net loss from operation for the year exclusive of lepreclation was

43,944.30, which certainly is a verb:, good considering the unexpected divia.;e which occurred on the ditch. The depreciation charge for the year amounted to $24,461.47, reAulting in a net book loss for the year of $26,425.85.

•

•

THr

NflITH POUDiE IRRIGATION CaTANY BALANC7 31177T 3TTFNT

DTCW.B7R

31, 1942

Current:

Cash First National Bank Cash in Till Petty Cash -.111 01Sr Ott • 1411, MO 40 00 Notes Receivable Assessments Receivable 1941 Assessments Receivable 1942 Commissary Inventory -Investments;

Stock in Wichita Bank for Cooperatives - -itock in - ther Companies

E.E221111...252taati

Insurance Fixed Assets:

itches and 'ieservoirs -Less: Depreciation Reserve-Buildings and Improvements-Less: -*predation Reserve-Office 7quipLent

LOBO:

T)epreciation

ReserveTransportation Pquipment -Less: nepreciation

Reserve-11. 110

Tools and -achinery -Less: nepreciation Reserve:iseellaneous Equipment -Less: nepreciation

Reserve-al

IntaRgibles:

4110

Priorities and ;e'er aights

ASSETS

$2,884.74

.55

10.00

837.00

7,686.02

$2,895.29

250.00

7,723.02

_312_42.2.

30,500.00

6osoo

0.1,215.60 30,560.00 170.23 $3,315,077.84 442,200.00 :2,872,877.84 314,885.24 12,625.90

2,259.34

A17.30

5

64.50 2.80

4500.70

187•71 312.93

41,425.78

828.59 597.19

600.19

361.34

238.85 2,876,338.95

545,100.00

•

•

•

THE NORTH POUDRE ILRiATION COVPASY BALANCE '3'117-T STAT7Y7NT

1ECFNB711 31, 1942

4111. VOW 01.4/11,00

LIABILITIES AND NET NORTH Currents

Accounts Payable 3curvin nitch 2Zotes Payable Wichita Bank

for Cooperatives Accrued Interest :ortglge

Accrued interest :Totes Payable Fixed:

'Tote and Yortgage "lichita hank for Cooperatives, nated 1l/1/36 due serially, Interest

3i

rp:. *Tien 14

AP AO .. ..

Net -orth:

Capital A.ock 10,000 ihares $50.00 par value -Premium on Capital 3tock Capital Surplus

-$397.75

8,5oo.00

833.32

25.07

,500,000.00 3,450.00 2,676,017.01 $9,756.14 511,200.00

Surplus Arising from

Assess-ments on Capital stock 311,093.47

y3,490,560.48 Operating jurplue Deficit - .13617411,

0$

•

•

Revenue:

Assessments

poesil •3reek- Preferred Rights Old light Transfer Fees

-Water Rental

Leases

-Oil and gas Royalties

Miscellaneous Income

-THE NORTH POUDRE IRRIGATION CaTANY REMUE AND EXPENDITURE STATSrENT

JAFU-1,11Y 1 TO TrIEVB711 31, 1942 0001040,411000010 1.1.. .0 00 " es Operatinz -xpense: Ditch Riders

-Gate Tenders and Watchmen Assessments Water Stock -Tollage

NO. 11011

Maintenanc e nyense s

Sib es Os M.

Labor

Faterials and 3upp1ies Buildings and -tructures ,74quipment

General Ex eases

Salaries Officers -Directors Fer Diem

General 'ffice xpense -(tfice .ialaries (Barnes)

Legal -

-Rental and Light Telephone -Insurance • - - -Auditing SO. On 00 00 sin O0 001 .01 010 MIS 00 air 3,462.42 1,384.00 333.7; 9,720.4o f)8,120.20 4,708.28 124.37 912.

₅

ol6o0.26 600.00 2.00 36.50 194.66 353.10 20.50 129.74 314,900.63 13,665.50 ,51,961.78 44.,7644,00 204.65 209.20 410.66 652.74 315.37 405.54 266.87 76.50 7,325.73 36,091.86

•

THE NORTH POUDRE IRRIGATICU CQUANYREVENUE AND EXPENDITURE STATEMENT JANUARY 1 TO DECFMBER 31, 1942

011rine,0041110-Wall.

Net Operating Profit Forward

latatrAtirw Revenue and Wenditurest Interest Received - .11. WO

Commissary

:riin:nvantory

_$579.59

Purchases

_555.33

3756.89

315,869.92 252.67 316,122.59 $1,134.92

Less: "!losing Inventory - - 347.22 7b7.63

Net Loss Commissary - - - - t30.74

Interest Paid 18,036.2 . 18,066.97

III

Net Loss rxclusive of Depreciation $1,944.38

1 Depreciation Charged for Year24.461.42

Net Loss for Year .26,425.85

•

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•

•

Tkt NCnT POOR! IRI1ATION CTYPANY U311 STATEVIVT

JANUARY 1 TO DECE7BnR 31, 1942

RECEIPTS Opening Balance January 1, 1942

Assessrents 1941 Assessnents 1942

Assessments vossil Creek Assessments rld aights Interest ViscelIeneous -Leases - ---Lease = 36..9-69 MO • 40 .44 -•• 1942 40 00 40 IOW ow •

Notes Payable :::urrent 44. 00 40

00 40

Oil and Gas Notes 410 04 40 04

Transfer Fees . - 40 440 44, Refunds ,aintenance Coalaissary Telephone ft ar 0110 410 Insurance vim No.

7

Lateral 41. so alp 410 .4*ater Rental 44 4111 $5,827.46 54,814.24

6o0.00

25.00

252.67

129.74

265.00

152.50 8,5C0.00 20.50 33.50 111.59 1.65 2.51 15.88 17.79 194.65

4958.91

70,969.71 $71,928.62

•

•

rd.T.

NORTH

pouDRE

IRRIGATION CCERANY CASH 5TATaitENT

J.V7.;A1Y 1 T'' 77C7.77-211 31, 1942

''ISBURSMENTS

Balance ::ash Carried Forward - C71,928.62

'1.rectors 7er Diem - .

-Commissary -

-)itches and and Reservoirs:

Waintenance - -!!aintenance No.

3

Reservoir!aintenance 7quipemtn 910 air OW Michigan - itch Cperation .. Tollage -itch Assessments w• OW OW 40 General -Xponse Interest 40 I. oO WO 40 40, Legal - - - -Yortgage

Rent and Light - -

-Salary

---Taxes and Insurance Telephone Water Rights

Less: 7redits - Balance Cash necember 31, 1942-Consisting Of: Cash in Bank Cash in Till Petty fish

4204.65

555.33

7,953.21 1,481.32 912.65 3,539.31 4,701.42 9,720.46

333.75

620.06

18,030.56

652.74

11,900.00

31.5.37

4,040.50 319.19 409.06 3,000.00 .)69,789.58

756.21

320884074 *IN Via 410 •

55

10.00

694033.33

$2,895.29

$2,895.29

%I

•

•

•

THE NORTH POUDRF IRRIGkTION COMPANY -0RTGAGE3 AND NOTES PAYABLE

DECElarR 31, 1942 .1. OD mar 40

ACCRUED INTFV3T

lance Balance Balance Balance

42 -laid Issued 12/31/42 1/1/42 raid Accrued 12/31/42

"lchita Bank for Cooperatives. rortgage Note 11/1/36 due serially. Interest

J-41

14

_{3 - 4523,100}

.511,200

,:)852.72 0.8,030.56 $18,011.16 033.32

1/15/42

$2,100

4/12/42

3,000

4/21/42

3,500

4/23/42

3,300 Nov. 6, 1942 2i _{i5,500 5,500} 20.34 20.34 Dec. 9, 1942 2f 3,000 3,000 4.73 4.73 023,100 $11,900 38,500 ,;519,700 “i52.72 318,030.56 0.8,036.23 $858.39

H. WINFIELD ROGERS, R. A. Associate TELEPHONE 613

•

•

ANTHONY S. ROGERS, Ph. B. REGISTERED ACCOUNTANT

Suite 210 Alpert Block

FORT COLLINS, COLORADO

January 2, 1942 AUDITOR'S REPORT

THE NORTH POUDRE IRRIGATION COI:PA:TY DECEMBER 31, 1941

To The Board of Directors

The 'North Poudre Irrigation Cotany Fort Collins, Colorado

Gentlemen:

71e have examined the Balance Sheet of '.12he North Poudre Irrigation Company as of December 31, 1941, and the

statements of Income and Surplus for the calendar year then ended, have reviewed the system of internal control and accounting procedure of the Company, and have examined or tested records of the Company and other supporting evidence 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 of ditch companies as shown by Company records were examined by us and found to be in order. Stock Wichita Bank for Cooperatives was verified by direct confirmation by the bank as of r)ecember 31, 1941.

L1ecords pertaining to capital stock issued and 2'ossil ''reek preferred rights were examined by us and found to be

correctly stated. During the year additional stock was issued for .05-5/18 shares, bringing the total capitalization to

10,000 shares, par value „i;50.00.

So far as ascertainable and so far as shown by the books of the Company all assets and liabilities at December 31, 1941 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.

S

•

"1e have satisfied ourselves that all income for assessments, water rents, preferred rights, royalties and leases has been properly accounted for.

n the above basis, in our opinion, the accompanying Balance Sheet and related statements of Income and Surplus present fairly the position of The North Poudre Irrigation company at December 31, 1941 and the results of its operations for the calendar year, and conform to generally accepted

accounting principles ap2lied on a basis consistent with the preceding year.

Very truly yours,

S

BALANCE SHIJAT Cash, .958.91:

-,:ash on hand consists of the following, First National

Bank, Fort $948.91, petty cash z;,i10.00, total :4;958.91.

The Company started out with an opening balance of cash of '611,166.65. Total cash receipts during the year, principally from assessments was 50,471.11. Disbursements made for all purposes amounted to 60,678.85, leaving a balance at the close of the year of -)958.91.

Notes Receivable, ',250,00:

The only note held by the Company is one given by A. Vance in favor of The Mountain and Plains irrigation 2o. and endorsed by them to The North Poudre Irrigation Company. No payments have been made on this note during the present year. Interest is paid on this note to April 21, 1940 and the accrued

interest to the present time i 29.65. The note is secured

by certificate No. 48 representing 4 preferred rights in The Mountain and Plains Irrigation company. Mile no payments have been made upon this note for the past three years, it is

our _{opinion that the security is ample and that the 2ompany}

will suffer no loss from this investment. Accounts eceivable,

This amount due from the Grable Lateral Company is for labor and materials supplied for the repair of the lateral and there should occur no loss from this source.

Assessments _-Leceivable, $5,864.46:

All assessments for prior years have been paid in full and the balance of $5,864.46 is for the 1941 assessments.

At the annual stock holders meeting held at the

beginning of the year assessments were made upon the outstanding stock as follows:

Interest on Mortgage Note -Tollage

Maintenance, Operation, and Misc.

•••

Total

Single Share Total

321,500.00 4,500.00 14,000.00 4,-40,000.00 These assessments were due and payable one-half on

May 1 and the second half on November 1 of 1941 with interest

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•

Fossil Creek, 150 i-referred Rights Old Right, Oliver Chandler, 1

Single Share Total

p4.00

_{ci 600.00}

$25.00 425.00

All of the Fossil Creek rights and the Oliver Chandler old right have been paid in full. Even though the assessment was low for the past year the showing for unpaid assessments carried over is remarkably good.

Cormissary Inventory,

$579.59

-We inspected the detailed inventory of supplies on hand as submitted to us by the officers of the Company, but did not make any personal verification of the physical inventory ourselves due to the fact that the amount is comparatively

small and the further fact that this inventory is loacted at the top of the divide sixty miles distant.

Stock in The —ichita Bank for Cooperatives, 30,500.00:

1--o changes have occurred in this account during the current year, the stock being held by the bank as additional security to the loan.

3tock in Ditch Company, 460.00:

7e have listed all the stock owned in ditch companies and found certificates to be in order, but the value as carried on the books probably has little relation to the market value of the stock. During the current year two shares of Taylor and

Gill stock certificate _{161 were sold for 4400.00. The}

Company still retains 21-7/8 shares of Taylor and Gill which at the market price of 4200.00 per share should be worth 4,375.00. And then in addition the Company has 290 shares of Arthur

Irrigation Company which ought to carry considerable value. There are of course additional stocks in laterals and

associations which are of only nominal value. Prepaid Expense, 201.35:

The amount of unexpired insurance at the close of the year was 4201.35. Insurance is carried on the house at Fossil Creek for ;5700.00 and public liability and property damage is carried upon the trucks. State compensation insurance covers all labor of the Company. The president and secretary are each properly bonded in the sum of $10,000.00.

Fixed Assets, 2,89W20.42:

Very little change has occurred in. the physical _assets

of the Company during the year. Office equipment has been

S

•

paid on trade-in for new truck and miscellaneous equipment was reduced 215.97 account of items fully depreciated. As income tax is no longer a factor it is our opinion that the items of depreciation could very well be dropped from the statements of the Company, as serving no other useful purpose.

Current Liabilities, $1,298.03:

The current liabilities on the closing date consisted of amounts due Scurvin Ditch stock holders $397.75, accrued interest - 852.72, accrued taxes $47.56, total $1,298.03. The first amount represents amounts due stock holders of Scurvin Ditch which iiill be paid upon presentation of the original stock certificates. The accrued interest of ,$852.72 is the amount of interest accrued lattnot due on the 7ichita loan from December 15 to 31 inclusive. The accrued taxes are the taxes for the year 1941 due and payable in 1942.

Notes and Kortgages, i'25231100.00:

During the year an extension was granted by the Wichita Dank for Cooperatives of the installment due on June 1, 1941

amounting to ;23,150.76 to

1957

so that in the year 1942 and

subsequent years the regular schedule will be maintained.

Nevertheless the Company had sufficient funds with which to make a payment of :_,12,600.00 upon the mortgage, leaving a net balance due at the end of the year of -,,523,100.00.

RESULTS OF OPERATIONS

The entire assessment of ;:-40,000.00 is included in the revenue for the year and not allocated to revenue and capital. Fossil Creek preferred rights paid in 600.00 as usual, leases amounted to .430.00, oil and gas royalties on which nothing has been received since 1938 until the present year, 0436.61, special maintenance miscellaneous reservoirs $308.48, water rentals

207.93, and other miscellaneous items, totaling $42,118.52 for the total revenue of the year. The operation expenses amount to

Maintenance expenses comprised for the most part of labor and materials and supnlies in repairs ,-ork 4414,543.70, and general expenses $7,469.95 or a total of ofleration expenses

,S26,91.6.96, leaving a net operating profit of 1.5,201.56. Interest received on delinquent assessments was $470.23. The commissary had a loss for the year of $113.70 but this is not surprising as the cost of food stuffs has advanced so that in our opinion the nominal charge of 33,3' per meal is not sufficient to cover the cost of food and labor at the com2issary. Interest Paid on the 7ichita loan was 18,957.66. During the year the Company received its final dividend from the old First National Bank of Fort Collins and it is now necessary to charge off the remaining balance of :.;478.09. The net loss for the year exclusive of

depreciation is $3,877.66 which indicate that the assessments should have been abollt 40,1 per share higher in order to cover the necessary expenses of the ditch. The net loss for the year including depreciation is $28,313.58.

•

THE NORTH POUDRE IRRIGATION C OITA' \Y

BALANCE SHEET ' STATF2,MTT

DEC'En3ER 31, 1941

Current:

Cash Tirst National Bank -Petty Cash Notes Receivable Accounts Receivable -Assessments Receivable (Current Year) Commissary Inventory -Investments:

Stock in 7ichita Bank for Cooperatives Stock in Other Companies

-Prepaid Expense: Insurance Fixed Assets: ASSETS $948.91 10.00 958.91 250.00

17.79

5,864.46

579.59

57,670.75

330,

500.00

60.00 30,560.00

201.35

Ditches and Reservoirs - - :.?3,312,077.84

Less Depreciation Reserve- 418,800.00 $2,893,277.84

Buildings and Improvements 414,885.24

Less Depreciation Reserve- 11,881.64 3,003.60

Office Equipment $117.30

Less Depreciation Reserve-

52..77

64.53

Transportation Equipment - $500.70

Less Depreciation Reserve- 62.52 438.11

Tools and :'-achinery - - - ;31,530.86

Less Depreciation Reserve- 785.85

745.01

Miscellaneous Equipment - $600.19

Less Depreciation Reserve-

308.86

_{291.33 2,897,820.42}

III

_Intangibles:

Priorities and Thter Rights _545,100.00

.

THE NORTH POUDRE IRRIGATION COMPANY BALANCE SIEET STATEMENT

DECEMBER 31, 1941

LIABILITIES AND NET WORTH Current:

Accounts Payable Scurvin Ditch

_$397.75

111

Accrued Interest 852.72

Accrued Taxes 47.56 4.,298.03

•

Fixed:

Note and :"ortEage Wichita Bank for Cooperatives, Dated 11/1/36 due serial:_y, Int. 3,45 J-D 14 Net Worth:

523,100.00

Carital Stock 9999.94-13/18

shares , 50.00 per share

_$499,997.36

Add: -:ew 3tock issued .05-5/18

2.64

Total outstanding 12/31/41

-10,000 shares $500,000.00

Premium on Capital Stock - - 3,450.00

Capital 3trp1us 2,676,017.01 Surplus arising from Assessment

on Capital 3tock 299,193.47

Operating Surplus Deficit $493,392.41

Add: 1941 Loss 28,313.58 (521,705.99) 2,956,954.49

111

THE NORTH POUDRE IRRIGATION COMPA-CY REVENUE AND EXPENDITURE STATEMENT

JANUARY 1 TO DECEL1BER 31,

Aevenue:

1941

Assessments _{40, 000.00}

Fossil Creek Preferred Rights

600.00

Old Right

25.00

Leases

_430.00

Oil and Gas Royalties - - -

436.61

S7)ecia1 Maintenance

1'.7iscell-aneous Reservoirs - -

_308.48

Water Rental

_207.93

Transfer Fees

30.50

7iscel1aneous

_80.00

_$42,118.52 Operating Expense: Ditch Riders _ $2,663.13

Gate Tenders and "atchmen _ 1,260.25

Assessr:Lents on -fater Stock - 409.75

Tollage 505.78

Rentals Paid Sec. 36-9-69 - 64.40 4,903.31

raintenance Expense:

Labor _{- 4,250.06}

:.7aterials and Supplies - a. dal

6,437.68 Grable Lateral 50.00 Buildings 12.76 Equipment _{765.16 14,543.70} General Expense: Salaries of Officers - - _ ... :,4,764.00

Directors Per Diem 266.71

Legal _692.46

General Office Expense _ ... _.

_V7.92

Rental and Light 321.05

Telephone and Telegraph _ _ 370.91

Insurance 243.25

Taxes .

59.33

Auditing 76.50

Unemployment Insurance - _{75.82 7,469.95 26,916.96}

THE NORTH POUDRE COLPANY REVENUE AND EXPENDITURE STATE.=

JANUARY 1 TO DEC EMBER 31, 1941

Net Operating Profit Carried Forward Interest Received

415,201.56 470.23 815,671.79 l'Ton-Operatinci Revenue and Expenditures:

Commissary Sales $961.38

Opening Inventory _437.86

Purchases 1,216.81

cA.,654.67

Less: Closing Inventory _ _

_179.59

_1075.08

Het Loss Commissary _ _ _ _ _,113.70

Interest Paid 18,957.66

Loss Closed Bank Account - _ _{478.09 19,549.45}

Net Loss Exclusive of Depreciation _43,877.66

Depreciation Marged for Year _24,35.9

Net Loss for Year _,28,313.58

THE NORTH POUDRE IRRIGATION COMPANY CASH STATEMENT

JKTUARY 1 TO DECEMBER 31, 1941

RECEIPTS

Opening Balance January 1, 1941 - - _tll,166.65

• Assessments, 1937-8-9 and Special- 42.53

Assessments 1940 12,269.63 Assessments 1941 34,135.54

Assessments Fossil :reek

600.00

Assessments Old Aights 25.00 Dividend First National Bank of

Fort Collins 106.26 Capital Stock 2.64 Interest 470.23 Lease 36-9-69 180.00 Leases _295.00 Refunds, Insurance 119.10 Refunds, Tax 154.77 Refunds, 7'ateria1s 149.92 Refunds, Telephone 25.02 Refunds, General Office 3.00 Transfer 'ees 30.50

7ater Rent 207.3

Cement Account Special 685.93 Grable Lateral account 171.50 Taylor and Gill 'Stock 400.00 Oil and Gas Dividend 436.61

•

_20,471.11

THE YORTH POUDRE IRRIr;ATIO COYPAYY CASH STATE17172

JA:UARY 1 TO DECErB72 31, 1941

DISBURSE=TS

Balance Cash Carried Forward _$61,637.76

411

Caqmissary

Directors per diem

Ditches and Reservoirs:

Ilaintenance Maintenance on Equipment-Surveys lichigan Ditch Operation Ditch Assessments Tollage Equipment .Tleneral Cffice Expense Interest Lease 36-9-69 Legal 17otes Payable - l!ortgage Rent and Light Salary Scurvin Ditch Taxes - Unemployment Taxes and Insurance Telephone

Grable Lateral account -

Cement account special

-••••• ••• •=.

,216.81

268.71

10,711.06 705.18

236.73

3,230.84 3,752.38 409.75 505.78 500.70 600.92 19,102.96 64.40 692.46 12,600.00 321.05 4,840.50 40.00 288.75

398.75

409.40

90.10

621.47

61,688.70

Less Credits: Commissary 061.38 sent _35.00 Telephone _{13.47 1,009.85 60,678.85}

Balance -ash December 31, 1941

958.91 Consisting of:

First National Bank - _048.91

• 0

0

•

1ichita Bank for .00peratives. — ortgage Note 11-1-36 due ser-ially. interest

J - D 14

THE NORTH POUDRE IRRIGATION C0MPA1TY MORTGAGES AND NOTES PAYABLE

DECEMBER 31, 1941

ACCRUED INTEREST

1/1/41 Paid 12/31/41 1/1/41 Paid Accrued 12/31/41

;535,700.00 _$523,100.00 098.02 $19,102.96 $18,957.66 4,i852.72

3-

7-41 $2,200.00 6-17-41 _400.00 7-11-41 _5,000.00

8-

7-41 _5)000.00 535,700.00 $12,600.00 $523,100.00 _{098.02 $19,102.96 $}

dt9 7.66

$852.72

AP'

ANNUAL AUDIT REPORT

TIE 1 TOR= POUDRE IRRI GAT I 01\7 C 0 .

JANUARY 1 TO DEC MLBER 31, 1941

H. WINFIF.LD ROGERS, R. A. Associate TELEPHONE 613

•

•

ANTHONY S. ROGERS, Ph. B. REGISTERED ACCOUNTANT

Suite 210 Alpert Block

FORT COLLINS, COLORADO

January 2, 1942 1.I.MT3R13 RETORT

THP Nr.MINlinan.: 171..RIGATICAT COI-TANY DF:C.fIrliTtl 31, 1941

To The Board of Directors

The North Poudre Irri,3ntion 1parAy Fort "ollins, lolorado

3entlenens

^le have eicamined the Balance •;Meet of The North rendre irrigation Company as of neceber 31, 1941, Ind the statements of 'nem* and :urplus for the calendar year then ended, tteve reviewed the syntern of internal control and accounting procedure of the :!erlpany, and have exaned or tested records of the Company and other sup3orting evidence by methods and to the extent we deemed appropriate)*

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

Investments in stock of ditch coLpanies as shown by Icetpany records were examined by us and found to be in order.

-toek ••ichita Bank for "7ooperatives was verified by direct confirmation by the bank as of -lecemeter 31, 1941*

aecorris pertaining to capital stock issued and 7ossi1

'7reek preferred rights were examined by us are found to be correctly stated* 'luring the year additional stock was 1.1...,ued for .05aP5/18 shares, bringing the total capitalization to

10,000 shares, par value t50.00*

lo far as ascertalnable and so far fte e,o.an by the books of the lompany all assets and liabilities at lece.:Iber 31, 1941 are reflected in the alcomparkyliv flalance Meet.

The disbursements durin.: the year have been verified by exa:Anation of all cancelled checks returned by banker

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

e have satis:ied ourselves that all income for assessments, water rents, preferred ri,7hts, royalties and leases has been properly accomnted for.

-n the above basis, in our opinion, the accompanying Balance 'hoot and related statements of Income and urplus present fairly the position of The North Poudre Irrigation Company at DeceMber 31, 1941 and the results of its operations for the calendar year, and conform tlifenerally accepted

accounting principles applied on a s consistent with the precedin„; year.

Very truly yours,

_tegistered ccountant

S

•

BALANc-Cash, 25p.91:,

rash on hand consists of the following, First National

Bank, Fort Collins :;,94 6.91. petty cash 0.0.00,

total 05801.

The ,ompany started out with an opening balance of cash of 11,166.65. Total cash receipts during the year, principally from assessments was v50,471.11. lisbursements made for all

purposes amounted to $60,676.85, leaving a balance at the close of the year of 058.91.

alg2-229-dititilL-alaaaL

The only note held by the Company is one given by A. Vane* in favor of The ountain and Plains Irrigation 7o.

and endorsed by then to The North

Padre Irrigation Company.

No payments have been made on this note during the present year. Interest is paid on this note to April 21, 1940 and the accrued interest to the present time is $29.65. The note is secured by certificate No. 48 representing 0- preferred rights in The

%'ountain and Plains Irrigation lompany. no payments

have been made upon this note for the past three years, it is Out opinion that the security is ample and that the company will suffer no loss from this investment.

Accounts

Reoetitable, ‘17.71s

This amount due from the Irable Lateral Zompany is for labor and materials supplied for the repair of the lateral and there should occur no loss from this sources

A sit ammkt

.

i

.

j

...±..

864.46:

All assessments for prior years have been paid in full

and the

balance

of 05,864.46 is for the 1941 assessments.

At the annual stock holders meeting held at the

beginning of the year assessments were made upon the outstanding stock as follows:

Ang19 *hare Total Interest on 'ortgage Note

Tollage ...

raintenance, Iperation, and "leo. Total

OP OP NO 40 „,21,500.00

4,500.00 14.000000 t".40 000 00 These assessments were due and payable one..half on

'ay 1 and

the second half

on November I of 1941 with interest

-1-12_1h2t9.

Total

?essil Creek, 150 referred Rights

al122

(400,00,

ld tight, liver Chandler, 1 25.00 25.0O

All of the Fossil Creek rights and the Calves* Chandler old right have been paid in full. even though the assessment was low for the past year the Showing for unpaid assessments carried over is remarkably good.

•

9 sari Inventory, 479.59*

-e inspected the detailed inventory of supplies on hand as submitted to us by the officers of the 7ompany, but did not make any personal verification of the physical inventory ourselves due to the fact that the amount is comparativeXy

small and the further fact thnt this inventory is loacted at the top of the divide sixty miles distant.

jr...11jaatjartita Bank for operatives. :301500.001

No changes have occurred in this account during the current year, the stock being held by the bank as additional security to the loan.

'tack in 4toh Comnanwi 60.00;

e have listed all the stock owned in ditch companies and found certificates to be in order, but the value as carried on the books probably has little relation to the market value

of the stook. _{uring the current year two shares of Taylor and}

Gill stock certificate No. 181 were sold for ,400.00. The

Company still retains 21-7/8 shares of Taylor and Gill which at the market price of $200.00 per share should be worth $4,375.00. And then in addition the Company has 290 Shares of Arthur

Irrigation lompany which ought to carry considerable value. There are of course additional stocks in laterals and

associations which are of only nominal value. agaiti4_SERInfa_11212111

The amount of unexpired insurance at the close of the year was ',201.3541 Insurance is carried on the house at Fossil 'reek for j700.00 And public liability and property dama:Te is

carried upon the trucks. tate conpensation insurance covers

all labor of the Company. The president and secretary are each

• _{properly bonded in the sum of $10,000.00.}

?ixed Aeset, 2,897.820.421

Very little change has occurred in the physical assets of the lorapany during the year. nffice equipment. has been