Audits - 1933-1939

(1)

(2)

H. WINFIELD ROGERS, R. A. Associate

TELEPHONE 613

ANTHONY S. ROGERS,

Ph.

B.

REGISTERED ACCOUNTANT

Suite 210 Alpert Block FORT COLLINS, COLORADO

January

3,

1940

AUDITOR'S REPORT

THE NORTH POUDRE IRRIGATION COMPANY DECEMBER 31,

1939

To The Board of Directors

The North Poudre Irrigation Company Fort Collins, Colorado

Gentlemen:

'le have examined the Balance Sheet of The North Poudre Irrigation Company as of December 31,

1939,

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 banks was reconciled with amounts confirmed direct to us by the depositaries and cash on hand in the petty cash fund was counted.

Investments in stock of ditch companies, as shown by Company records, were examined by us and found to be in order. Stock in The Wictita Bank for Cooperatives was verified by direct confirmation by the bank as of December 31,

1939.

'iecords 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 Company, all assets and liabilities at December 31,

1939

_{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 accounts.

(3)

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

On 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,

1939,

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,

_ Registered Accountant

(4)

BALANCE SHEET Cash, $958.70:

Cash on hands consists of the following: First National Bank, Fort Collins, $948.70; petty cash, $10.00; total, $958.70. Notes Receivable, $250.00:

The only note held by the Company is one given by

T. _{A. Vance is favor of The Mountain and Plains Irrigation Company}

and endorsed by them to The North Poudre Irrigation Company. NO payments have been made on this note during the past year. Int-erest is paid to April 21, 1938. The note is secured by certifi-cate No. 48, representing 44 preferred rights in The Mountain and Plains irrigation Company.

1939

_{Assessments, $12,986._78:}

The unpaid assessments for the current year on North Poudre stock amount to $12,986.73. All assessments for prior

years have been paid with the exception of $1.48. In addition _to the above, Fossil Creek assessments in the amount of 416.00 re-main unpaid.

At the annual stock holders meeting held on February

6,

following levy was made upon each share of stock in the

1939

the Comnanys

Interest on Yortgage Note - -Liquidation Indebtedness (Mtg.) Liquidation Current Indebtedness Tollage

Operation and Maintenance

-Single

$2.28

2.14

•55

.5o

2.26

$7,75

Total $22,799.88 21,399.89

5,499.97

4,299.97 22,000.00

4'077,499.71

Of the above assessments $4.00 was due and payable May 1,

1939

and

$3.75

November

_{1, 1939.}

All past due payments to bear interest at the rate of 8% per annum until paid.

Commissary Inventory, 4400.67:

We inspected the detailed inventory of supplies _{on hand} as submitted to us, but did not make any _{personal verification} of the physical inventory.

Stock in The Wichita Bank for Cooperatives, _$30,500.00:

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

(5)

Stock in Ditch Companies, 0460.00:

Te 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. LEtPAII_I111.11Ea129.!L_IL

The amount of unexpired insurance at the close of the year was 284.64.

Fixed Assets, net, $2,946,143.21:

-lecreases in the plant account for the year amount to $1,014.29. The usual depreciation was taken upon plant assets which for the current year amounts to an expense charge of

$24,671.64. The total adjusted depreciation to date is 0384,371.23. Certificate of Participation, :First National Bank, ;i84.35:

During the year a dividend was paid by the old First National Bank in the sum of $106.24, leaving a balance of 0584.35 still due the Company and which of course is of very doubtful value. Current Liabilities, 01,667.53:

Current liabilities consist of $1,039.56 accrued interest due the Wichita Bank;

037.75

_{Scurvin Ditch; and accrued taxes of}

all kinds, $190.22.

Mortgage Payable, $558,000.00:

During the past year $21,400.00, representing the

installment due, was paid on the Wichita loan, reducing the balance to $558,000.00.

Net Worth, $2,978,098.38:

No change occurred in the outstanding capital stock for the year. Assessments in the amount of :7.,26,699.86 levied for capital purposes were added direct to the assessment capital surplus,

increasing that surplus account to $276,893.49. The operating account before deducting the item of depreciation shows a net profit of

$5,812.35. After deducting depreciation in the sum of $24,671.64 there results a net loss from opertion of $18,859.29 which added to the operating surplus deficit account results in a total operating deficit to date of $478,259.48. From the above results it will be noted that the levy for the last year was sufficient to meet all requirements, and disregarding the item of depreciation shows an excess income of $5,812.35, which in our opinion is a fine showing and much better than the previous year which showed a loss of over $9,000.00 at this same point.

(6)

THE NORTH POUDRE IRRIGATION COMPANY BALANCE SHEET STATELMNT

DECEMBER 31,

1939

Currents

Cash First National Bank-Petty Cash Notes Receivable

1937 Assessments

a. dm MD

1938 Assessments

1939

Assessments

Fossil Creek AssessmentsSpecial Assessments Commissary Inventory -Investments:

•••

Oa DID MIS

Stock "dchita Bank for Cooperatives 3tock in Other Companies-Prepaid Expense:

Insurance Fixed Assets:

Ditches and Reservoirs -Less Depreciation Reserve Buildings & Improvements-Less Depreciation Reserve Office Equipment -Less Depreciation Reserve Transportation Equipment-Less Depreciation Reserve Tools and Machinery -Less Depreciation Reserve Steam Shovel Less Depreciation Reserve Miscellaneous Equipment -Less Depreciation Reserve Balance Forward ASSETS

$948.70

10.00 $958.70

250.00 .72

12,986.78

16.00 .09

480.67

$30,500.00 460.00 $14,693.71 30,960.00 204.64 43,312,077.84 372,000.00 $2,940,077.84 $14,885.24 10,393.12 4,492.12 $244.70 155.71 88.99

4503.57

440.62 62.95 $1,627.53 59.2.82 1,034.71 $459.80 390.84

_66.96

$715.76

398.12 317.64 2,946414

:

3.21 42,992,081.56

(7)

BALANCE SHEET STATEMENT (CONTINUED) Balance Brought Forward

Intangibles:

Priorities and Water Rights Assets of Doubtful Values

Certificate of Participation, First Nat'l Bank Fort Collins

LIABILITIES AND NET WORTH Current:

Accounts Payable Scurvin Ditch Taxes Accrued

Unemployment Compensation Accrued Old Age Benefits Accrued-Interest Accrued on Note &

Mortgage -lichita Bank-Fixed:

Note & Mortgage to "Tichita Bank for Cooperatives, Dated 11/1/36,

due serially, Interest 4% M-N 1 Net Worth:

Capital Stock

_{9999.94 13/18}

shares _{$50.00 per share} Premium on Capital Stock-Capital Surplus Surplus Arising from Assess-ments on Capital Stock for Capital Purposes - - -

-1939

_{Assessments $2 per sh.}

1939 Assessments 550 per share for indebtedness -Operating Surplus -Deficit Add

1939

_{Operating Loss}

-$249,993.63

21,399.89

40437.75

50.00

100.26

39.96 1,039.56

4499,997.36

3,450.00 2,676,017.01 42,992,081.56 545,100.00

564.35 43,537.765.91

41,667.53

558,000.00

5,499.97 276,893.49

$459,400.19

18,859.22 (478,259.46) 2,978,098.38

43,537.765.91

(8)

THE NORTH POUDRE IRRIGATION COMPANY PROFIT AND LOSS STATEMENT

JANUARY 1 TO DECEMBER

_{31, 1939}

Income:

Assessments for Operation and Maintenance Assessments Preferred and Old

Rights Leases ater P.entals Buckeye Lateral Maintenance Transfer Fees vA.scellaneous Income -Operating Exoense:

Ditch Riders

Gate Tenders and Watchmen -Assessments on Water Stock "later Purchased and Tollage 'aintenance Expense:

Laboe

SEW

WO

Laterials and Supplies Buildings Telephone Lines Equipment General Expense:

Salaries of Officers Directors per diem General Office Expense Lease 36

9 69

Legal Rent and LigJit Telephone and Telegraph Taxes and Insurance Service Tax Unemployment Tax Old Age Benefits

OW OW gm MN 011* ,No

$50,599.85

625.00

225.00 1,279.00

91.13

24.50

130.00 $2,473.24

1,173.86

337.25 3,876.20 $7,860.55

$6,561.67

2,008.14 29.45

47.56 1008.19

9,655.01

452,974.48 4,839.00 311.25 521.09 112.35-87.20 320.95 349.98 174.98 3.24

469.61

156.22 _{7,345.87 24,84.43}

(9)

THE NORTH POUDRE IRRIGATION COMPANY PROFIT AND LOSS STATEMENT (CONCLUDED)

JANUARY 1 TO DECEMBER 31, 1939

Net Operating Profit Brought Forward Non-Operatin.g Income and Expense:

Commissary Sales

10

Opening Inventory 350.56 Purchases

41,020.26 Less Closing Inventory - - - 48042

Interest Received

Balance Available for

Interest-$735.92

609..59 $126.33

571.63

Miscellaneous Non-Operating Expense _$232.20 Interest Paid on :ortgnges - - 22,594.89 Interest Paid on Notes - - - 171.57 Net Gain Exclusive of Depreciation

Less Depreciation Net Loss for Year

$28,113.05 697_.96 $2(3,811.01 224996.66 $5,812.35 244671.64 $18,859.29

(10)

THE NORTH POUDRE IRRIGATION COMPANY CASH STATEMENT

JANUARY

1

TO DECEMBER

31, 1939

RECEIPTS

Opening Balance January

_{1, 1939}

_$284.43

1938 Assessments

1939

_Assessments Special Assessments Fossil Creek Assessments Buckeye Lateral Transfer Fees Interest Received Notes Payable rain Canal

Certificate of Participation

Laterals Miscellaneous Reservoirs Tunnel Water Rental and Tollage Leases for Pasture Miscellaneous Income Tools and Other l]quipment Telephone and Telegraph Refund State Compensation Refund Automobile Insurance Miscellaneous Water -Total Receipts $10,179.06 64,505.43 590.46 584.00

1,198.37

24.50 571.63 2,000.00 25.00 106.24

55.58 .91

135.00 1,080.00

225.00

70.00 20.00

20.68

191.95

3.49

199.00

81,786.30 $82,070.73

(11)

THE NORrH POUDRE IRRIGATION COMPAYY CASH STATEMENT DISBURSEMENTS Opening Balance Notes Payable _W7,500.00 Interest on :Totes 227.40 Mortgage Wichita Bank for Cooperatives 21,400.00 Interest on Mortgage 25,428.58 Taxes: General _51.15 Unemployment _474.57 Social Security 312.34 Service _3.24 Buckeye Lateral _1,107.24 Scurvin Ditch _15.00 Lease 36-9-69 _64.40 Commissary _709.70 Miscellaneous Equipment 23.36 Ditches and Reservoirs:

Ditch Riders _2,473.24

Gate Tenders and Watchmen _ _ MO 4=1

1,173.06

Labor _6,561.67

Materials and Supplies 2,063.72 rater Rental and Tollage 4,213.45 Buildings and Structures 29.45

Telephone Lines _47.56

Tools and Machinery 1,009.10

Salaries _4,639.00

Directors per diem 311.25 Office Supplies and Expense 521.09

Legal _87.20

Telephone and Telegrap# 370.76

Insurance _503.07

Rent, Heat, Light 320.95 Viscellaneous Yon-Operating Expense - 232.20

Less:

Social Security - - - - $156.50 Miscellaneous Income - - 60.10

Commissary

_735.92

Total Disbursements - ••• dB.

Cash Balance December 31,

1939

$82,074.55

952.52 $82,070.73

$81,122.03 4948.70

(12)

‘..ichita Bank for Cooperatives 4% J-D 15

THE NORTH POUDRE IRRIGATION COLPAYY LORTGAGES AND NOTES PAYABLE

DECE17,BER 31,

1939

Interest

.4...LLa )ebits Credits

12111/.3

1/1/39 Debits Credits 12/31/3'5 4;579,400 7,000 6,4u0 5,0U0

579,4o0

,,4,400,

-3,873.2

14,238.0O 22,594.894;1,039.56

11,190,58

3,873.2 y25,428.58

First latil Bank

8% 9/8/37 44,000 4;1,000 4;.00 4)8.67 Alex Lelson 6% 10/26/38 $2,000 2,000 .00 $22.00 5u.34 6% 10/26/38 3,000 3,000 .00 33.00 108.97

6% 12/21/38

500

500 .00

.83

13.56 6;i; 1/25/39

_1,000

1,000 .00

45.86 $5,500 4;7,500 $2,000

4;55.83

$227.40

22,594.89

4;1

)

039.56

42.67 4;.00 28.4 .00

75.97 .Q0

12.73 .00

45.86 .L.A.,

,171.57

(13)

VI

THE NORTH POUDRE IRRIGATION COMPANY JOURNAL ENTRIES

Depreciation --- _-MP MD

Depreciation Reserve

-Buildings and Improvements $744.26 Office Equipment - - - - 2

.9 3.18.10 Transportation Equipment ₄₁ Tools and Equipment - - - 157.22

Steam Shovel 45.98

Yiscellaneous Equipemtn - 64.69 Ditches and Reservoirs - 23,400.00 ,24,671.64 Depreciation Reserve

Office Equipment Transportation

Miscellaneous Income (Mixer) 419 riscellaneous Equipment

-Item depreciated fully. Deferred Insurance

Insurance ?aid Correct Books

Interest Paid Mortgage 481 -Interest Accrued Mortgage 221

Correct Interest Accrued Books

Taxes Paid 466 Taxes Accrued 225

To adjust estimated County Taxes for 12/31/39. -$284.64 110.90 $173.74 $1,039.56 978.41 $61.15 4 Inventory (New) Inventory (Old)

To record new inventory 12/31/39.

$24,671.64 1,017.65 173.74 61.15 41.09 400.67 $24,671.64 15.00 924.00 18.00 60.65 173.74

61.15

41.09 400.67

(14)

(15)

(16)

(17)

TELEPHONE 613

ANTHONY S. ROGERS, Ph. B. REGISTERED ACCOUNTANT

Suite 210 Alpert Block FORT COLLINS, COLORADO

Jmluary

_{3, 1940}

AUDIT-MI= REPORT

THE NO RTE FOUR E MRITCIOK COVPANY DECEVB7sR

31, 1939

41.10. MO a. WI

fo Tho Board of nireetors

The North Poudre Irrigation (.'ompcny Port 7ollins, Colorado

Gentlemen%

-e have examined the balnnce .3heet of The North Poudre Irerftion Copany as of recember 31,

1939,

and the 7tatements of Income and Surplus for the calendar year then

ended, have reviewed the system of internal control and accountiqg procedure of the Company, and nave examined or tested records

of the ",lompany and other supportir - evidence, by methods and to the ytent we deemed appropriate.

lash in banks was reconciled with amounts confirtaed direct to us by the depositaries and cash on hand in the petty cash fund wae counted:

Investents in stock of ditch cowponies, as shown by 7ouipany records, :fere examined by us and found tc be in order. 7;tock in The 'lichita Bank for Cooperatives was verified by direct confirmntion by

the bank

as of December 31,

_1939.

Aecords pertaining to capital stock issued and

Fossil Creek preferred r141ts were examined by us and found to be correctly stated.

70 _{far as ascertainable and so far as Shown by the} books of the Company, all assets and liabilities at neceber 31, 193',1 are reflected in the accompanyirr: 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 recorded receipts have been traced as deposits in the bank accounts.

(18)

"'41 have satisfied ourselves that all incowe from a3sessments, wnter rentals, preferred rights, and lease.; has been properly accounted for.

On the above basis, in our opinion, the accompanying Beimnce -heet Ind related Itltements of Income rind 3urplus present fairly the position of The North Poudre Irrigation

P'orpany nt necember 31, 1939, and the resulta of its operaLio,..ls for the calendar year, and conforn to Tenerally acceptci

accounting principles ap-)liea on a basis consistent with the precedirv year.

(19)

BALAIICT;' "11-17i7r

Cash, Z.95b.70:

t'ash on hands consists of the following: First National Bank, rort _{V48.70; petty cash, $10.001 total, $950.70.} Notes :ieceivat4e, te 50.00:

The only ltote held by the Company is one ,;iven by

". A. _{Vince is rtl:vor Df The 'iounthin and Plains Irrigation C:ompany}

and endorsed by them to The North Foudre Irrigation Company. No payments have been made on this note durirk; the past year. Int-erest is paid to April 21, 1938. The note is secured by certifi-cate

ro.

_{48, reprecentin 4 preferred rihts in The !!ountain Ind}

Plains irriwItion ?crinany.

19.12.1essmq,LIIEL.116.2§61711,L

The unpaid assessment for the current year on :orth Poudre stock amount to $12,106.70. All assessments for prior

years have been paid with the exception of 0..48. In addition to the above, Fossil 7reek assessments in the amount of :16.00 re-main unpaid.

:tt the annual stock holders meetint: held on February 6, followin,; levy was made upon elagh share of stock in the 1.139 the

Com-Anys

Interest on Vortgage Note -Liquidmtion Indebtedness (Etg.) Liquidation Current Indebtedness 'foliage

Operation and Vaintensnce

... OD OD OD de Total 44.28 :22,799.68 2,44

21,319.89

.55

5,499.97

.50

4,999.97

22.,8o0,00.

$7,75

ONOIDOOMINOOND

477,49?.71

of the above assessments 44.00 was due and payable ray 1,

1939

and

$3.75

_{):ovember 1, 193q. All past due payments to bear interest}

at the rate of

81

per annum until paid. Complisr,ary Inventory, 14160.67:

-e inspected the detailed inventory of supplies on hand as submitted to us, but did not make any personal verification of the physical inventory.

ltock in The 'Achita Bank for Cooperatives, $30,500.001,

No chanes have occurred in thic account durin, the current year, the stock bein held by the bank as additional si?curitr to the mortgaJe.

(20)

took in nitch ?orapaniesk 4t0.1)0:

're listed all the stock owned in ditel companies and found certificntes to be in order, but the value as carri4d on the books nrcbably hat little relation to the market value of the stock. rrepaid Insurance. :,:64.641

The grount of unexpired insurance at the close of the year was $84.64.

Fixtd Asetsj it., $2,9461111.211

Decrerases int,h plant account for the year amount to $1,014.200. The usual depreciation was taken upon plant assets whia for the current year amounts to an expense charge of

124,67l.64. The total adjusted depreciation to date is ,304,)71..a3. 7ertificete of Participation) ;liret ratinnal Bank) 464.35:

During tho yell' a dividend was paid by the old First Natikelel isank in the sum of $106.24, leaving a balance of ,5o4.35 still due the lompany ,_{Ind which of courre is of very doubtful value.}

aumnIA92.1.21Aftis_ilegallL

Current liabilities eonsirt of tl,039.56 accrued interest due the .ichita Bank; $437.75 "curvin -itch; and accrued taxes of all Kinds, 1190.22.

55 000.00;

',1urim,f the paat year $21,400.00, representiry the

installment due, wa3 paifi on the wichita loan, reducin the balance to 056,000.00.

1;i4976)0e)6.36:

No change occurred in the outatendin.; qapithl stock for the yer,r. Assessments in the tisiourit of 26,4199.d6 levied for capital purposes were added direct to the assessment capital surplus,

increasing that surplus account to tda76,893.49. The operatiim account before deducting the itez of depreciation shows a net profit of

5,612.35. After deducting depreciation in the sum of (-24,67l.64 there results n net loss from operltion of 1;18,859.29 which added to the operatin surplus deficit account results in a total operating

!eficit to date of z$478,250.40. Trom the above results it will be noted thlt the levy for the last year was sufficient to neat all requirements, aril dilreg'.rding the item

of

depreciation shows an excess income of Z.5,612.35, which in our °plaice, is a fine showing And much better than the previous yens which showed a loss; of over $9,000.00 at this same point.

(21)

THr

NORTH POUTME IRRICT'aIli COMPANY BALANCE SHrET 3TATSWINT

DECF.V.BER 31,

1939

Currept$

7ash First National Bank Petty Cash -

-Notes Receivable

1937

AOSOSOMOnte 1936 Assessments

1939

AssesSMOUts

Fossil Creek Assessmentspedal Assessments -Commissary Inventory I. me 00 00 40 OD 40 01 40 Investmentss

'tock "ichita Bank for Imperatives

ltook in Other

Companies-40 40 41. 410, ap Prepaid 7xpensej Insurance - --Fixed As'etss

Ditches and Asservoirs Less nepreciation ":eserve Buildings •!'c Improvements-Less nepreciation Reserve nffice 77:quipment

Less nepreciation Reserve Transportation 'Iwiuipment-Less lepreciation Reserve Toole and rachimery

Less Deprocieltion Reserve Stew Shovel - Liss repreciAtion (eserve ViscellIneous ',:quipment -Lees neprecitItion eserve Balance Forward AISSTS $948.70 10.00 43,312,077.64 372,000.00 $14,665.24 14.391.12 244.70 155.71 $503.5/ 440.62 l,627.3 2

$459.80

390.84,

$715.76

32114

z958•70

250.0o

.7a

14,906:g

16.00 .og

46°.67

$30,500.00 460.00 ;2,940,077.64 4,492.12 88.99 62.95 1,034.71

68.96

4;14,693.71

30,960.00

204.64 112.111 2,946,143.21 $2,992,081.56 •

(22)

BALANCE 31MET 7TATWEAT (CONTINUED)

Balance Brought Forward

IntanAbless

Priorities and *"nter lights

Assets of ''oubtful Valu9s

Certificate of Participation, First Nat'l Bank Fort Collins

LIABILITIRq AND NrT "nRTH Current: $2,992,081.56 545,100.00 564.35 537.765.91

Accounts rayable :;curvin Ditch $437.75

TAXI)!!! Accrued 50.00

Unemployment Compensation

‘ccrued - 100.26

Old Age benefits Accrued..

39.96

Interest Accrued on rot'

ortga4e -ichita Bank- _3,039.56

_1p667.53

Fixed:

Not k rortgage to 'ichita BInk for ooperatives„ 'Dated 11/1/36, due serially, Interest 4% M-N 1

!et worths

Capital _Mock

9999.94 13/16

shares - $50.00 per share

Premium on '-"apital ;tack-Capital Surplus - OP ern le

$499.997.36 3,450.00 2,676,017.01

55600o.00

lurplus Arising from Assess-ments on Capital Stock for

Capital Purposes - - i249,993.1i

1939

Assessments $2 per sh. 21,399.89 193) Assessments 550 per

share for indebtedness - 5,47907 276,693.49

Operating '!urplus eficit .459,400.19

Add

₁₉₃₉

rloerating Loss -

0.859.29

(478,259.40) 2,978,09b.38 $3,537.765.91

(23)

THE NORTH Powm IRRIJATION CCCPANY

-)ROEPIT AND LO 9 STATFYENT

J 4NUARY 1 - _{31, 1939}

Plcomet,

Assessments for Oporntion and

!Mint...name 4. .. - - - . . - _$50,599.85 Assessments Preferred and Old

Rights - 40 01 .0 0 40 40 00 00 0 625.000

Leases --- _-. .. . 225.00,"z -ator lentals - * - ... - - - - 1,271002

Buckeye Lateral MaintenancP - 91.13

Transfer Fees - --- . . _24.50_.'

tAiecellaneoue Income. - - - _{110.00, ''' .52,974.48}

Vere.tings Nxpenvis

Ditch iliders •Ab ... 40

Gate Tenders and watchmen -Assessments on "later Stook -ster Purchased and Tollaoe rsintenance -xpensel

#2,473.4

1,173.86

P7.5

ill' 076 920,

v7.860•55

Labof - .. _$6,561.67

, qo,st, iale and 3upplies . . . _2,008.14 Buildin,e - .. - - . . . 29.4i Telephone Lines

rquipment - 4, a + + + + + + + _{100bia° 9,655601}

Jeneral r:xpenees

zalRries of nfficers nirectors per diem leneral -Moe 74cpense Lease 364.9-69 40 MI •

Legal

-Rent and Litt Telephone and Telegraph Taxes and Insurance

-c'ervice Tax ---411, 0 0 41. a. IMP 10 0 01 IMi UN. Unemploynent Tax 40 01, 04 0 0

Old hge Benefit*

Net ^perating Profit 64 40 40 40

44,03'4.00 311.25 5.21.09 112.35 a7.2v 320.0 )49.0 174.98 3.24 469.61

7=

AO.

87

$44113.05

(24)

THE

rotali Pouniir

1-!*RIGATION COVPANY PROFIT AND LOIS STATEPTIT (CM:LIMED)

JANUARY 1 TO DSCEMBER 31,

1939

0404.41041111

Net Operating Profit Brought 7orward $26,113.05 Non..Operating Income an *-7zx'enses

lommisrar; ales

-Opening Inventory Purchase

Al I O. 1. IIP

Less '..:losing Inventory

Interest -?ecdtived

OW MI 011. 111110

Balance Avallnble for Intqrest

43d0.56 709.70 $1,090.4'46

46041

Nisce11aneoue von-Dpettating T:x)ense Interest raid on -ortgiges

Interest Paid nn !Tot4..,

-Net Gain Tlxclusive of Depreciation

Less Depreci,Lion 6111, * * * * * $735•N

60.59

t126.33v/ 571.63-

,/

69m6 811.01 4232.40v 2,594.89' 17147 / 2499o.66 05,822.35 244671.64'

(25)

TIm NORTH MERE IRRIGATION COVPANY

CASH STATErrINT

JANUARY 1 TO DEMBER 31,

1939

OrdOOPOPOO•

IMEIPTs

Open1n4 Balance JanuAry 1,

1939

$284.43

1936 Assessments

1939

Assessments -i.)ecial f%ssessments

40 OP 40 OD OR oilb di le so orb

Fossil 7reek Assessments Buckeye Lateral * - - - ... Transfer Fees ig. ae 01, 40 Or Or or Or r re or as

Interest Received - - . Notes Payable . . . . . rain Canal - . . .• . • : . . Certificate of Participation.. Laterals - - - 4N0 MO OP 4, oh or 1.I Or Or Or or iiscellaneous leservoire Tunnel _--- al OP I.

-Ater Rental and Tollage - al. lb Or Mb or

LAtases for Pasture

"iscellaneous Income . ... . . . 4. . . Tools and .ther -quipment

Telephone and Telegraph - - . . . . . Refund tate Compensation

RefUnd Automobile InsurenSe . . . . . ,_{Jiscellaneous -ater - *}_{- *}_*_{e .}le OP Total Aeceipts

---410,170.06

64,505.43

po.46

564.o0

1.198.37

24.50

571.63

2,000.00 25.00 106.24

55.58 .91

135.00 1,060.00 245.00 70.00 20.00 20.6c 191.95 3.49 149.00 IMO

41.786.30

482,070.73

(26)

Opining Balance

TM! FIRTIT POIMIZ:z TT ON CO4PANY

C.A.511 STAITMIT 7311BURTOMITS a" MS OM 44) sr ... deo 40 010 0/1 00 el 4,84122,03 0946.70 4,84122,03 0946.70 Loess e"ocial -;ecurity -A.scellaneous rncome lommiseary ...

nempiqyment - - ID • 4. MO MIM OM Me Mb NIM 474.57

Soci4 lervioe . . - . . - - . . . 312.34 1 leourity . - a IV VP OP 1. WO MO 3.24 Buckeye Lo.teral * .. * - - - - - - _1,107.24 Lease 36..949 - . - .. . • 41* ma 4.1 III 410 0. 40 15.00 9eurvin Ditch - . - . . -64.40

C

omrissary - - ii. .. - - . . 411 el• ip II. 4. 709.70

viscellaneous Tquipment - - . - . ID 00 43.36

nitches and Reservoirs*

Ditch Riders . - ... - 40 • • 2,473.24

Gate Tenders and 'fatochmen. - - - . _1,173.86 Labor - - - . . - iii - . . . _6,561.67 Materiels and luprlio, - - - 2,063.72 , "%ter Rental and Toll**, . . .

4,213.45

Buildings and r:tructurcs 29.45

Telephone tines - - - ... 47.56 Directors per diem

Legal - . . . ... Telerhone and Telegrap0 4.

Office lupoliee and rxpense -Insurance - - - ... 3alaries - - - • • • • • • • • • • • • • iv a. III 4, or 10 00 1,03E0: 4,639.00 370.76 311.25 503.07 521.09 Tools and Yaohinery - - - . . . .

Rent, Heat, Might

-1,,iseel3anecus ron-Operatinc; rapense - 212.20

Total nisbursemente -Loess e"ocial -;ecurity -A.scellaneous rncome lommiseary ... so IMP ow 40 ..

Total nisbursemente - ebb

so IMP ow 40 ..

'ash Balance December 31,

1939

ebb

j.56.50 60.10

'ash Balance December 31,

1939

074.55 j.56.50 60.10 (g244 074.55 02,070.73 (g244 4,84122,03 0946.70 02,070.73 02,070.73

(27)

V.ichita Beak for Cooperatives 4% J-"-) 15

First gat II ilea

8% 3/8/37

Alex Nelson

6% 10/26/38

6% 10/26/33

6% 12/21/3a

6% 1/20/39

THE NOM MIME IRRIGa ION COMPANY JOrrilGAGYS 11%111) N0TE3 PAYABLE

nECEalifER 31,

₁₉₃₉

1110...1.11,011111

'ZItcatf. W31/12 111139

$579,400

7,000 614,Q0 5,00 M2.ALC, Warm. $1,000 $1,000 $.00 $2,000 2,000 3,00C 3,000 500 500 ""139" OtIr49 47,5"/ IMMIM!.+4MMI OMMOM=IWOMWM10 ±.222 .00 .00 .00 .00 .00

3,873.25

307304

$22..U0 33.(i0

.33

4'55.83

Interest

iel_Auts gibe„aits la/UM

Z14,238.00 119190,58

.22,594.89

_-19039.56

$258.58 22,594.89 1,039.6

_$1,03946

s8.67

5u.34

108.97

13.56 —41/4.6

227.40 011011.111•1111.11111.0....1•110

*8.67

28.34

75.97

12.73

45.86 $171.57

$.00 .00 .00 .00 .00

(28)

(29)

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

ANTHONY S. ROGERS, Ph. B. REGISTERED ACCOUNTANT

Suite 210 Alpert Block FORT COLLINS, COLORADO AUDITOR'S REPORT

THE NORTH POUDRE IRRIGATION COMPANY DECELSER 31, 1938

Gentlemen:

We have exaugined the books and accounts of The North Poudre Irrigation Company for the year ending Decaraber 31, 1938, and have prepared the accompanying Balance Sheet as of that date and 3tatement of Profit and Loss for the year then ended.

Investments in stock of ditch compan. ies ao shown by the Company's record, were examined by us L.nd fou.n to be in order,

Jtock in The Wichita Bank for Cooperatives was verified by direct confirmation by the bank as of December 30, 1938.

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 Company, all assets and liabilities of December 31, 1938 are reflected in the accompanying Balance 6heet.

The claim of Frank E. Widman has been settled by court decision, the costs of which are summnri7ed as follows:

Attorney fees

_,573.75

District Court costs - 94.90

Directors 38.00

15.6 acres real estate- 390.00 Bridge 300.00 Appraisal 45.00 Jamages and settlement- _{—24.14J-9-€} a2..21.6-32.1

(30)

The disbursements darin6 the year have been verified by examination o2 all cancelled checks returned by banks, journal vouchers, and receipted expense bills. The recorded receipts have peen traced as deposits in the bank account.

V,e satisfied ourselves that all income from assessments, water rentals, preferred ri„;hts, and leases has been properly

accounted for.

On the above basis, we are o2 the opinion that the attached Balance Sheet fairly sets forth the financial condition of the Company at December 31, 1938 and tla4,t the attached

Statement of Profit and Loss correctly sumarizes the recorded profit and loss for the year ended that date.

Very truly yours,

(31)

BALANCE MEET Cash, .294,411

Cash on hands consists of the following: cash in till, ,49,26; First Naticnal Bank, Fort Collins, $235.17; petty cash, 410.00; total 294.43.

Notes Receivable. .3250140:

The only note held by the Company is one given by • Vance in favor of The kountain and Plains Irrigation Company and endorsed by them to The North Poudre Irrigation Company. No pay-ments have been made on this note during the past year. Interest is paid to April 21, 1938. The note is secured by certificate num-ber 48, representing 4± preferred rhts in The Lountain and Plains

Irrigation Company.

Assessments $10, 761.58:

The following unpaid as.,escments remained on the books on the closing date:

1937

Assessments - $.72 1938 Assessments OM Mat OM 10,172.31

1938 Special Assessments-

590.55

`110,763.58

At the aanual stockholders' meeting held on February 7, 1938 the following levy was m,..de upon each share of stock in the Company:

*2.35 per share for interest on mortgage note

2.0 per smre for the liquidation of indebtedness 1.60 per share for operation, maintenance and

miscellaneous expenses 1.44_0, Total per share.

A further special assessment of

M.

per shnre was levied for the

purpose of purchasing additional water, due and payable July 1, 1938. ,3.00 per share of said assessment to be payable on April 1, 1938, aad ,.3.00 per share of said assessment to be payable on October 1, 1938, and that all past due installments of said assessments shall bear interest at the rate of eight percent per annum until paid.

Coramis6ary

Inventories ,180A161

We inspected the detailed inventory of machinery and

supplies on hand s submitted by employees, but did not make further verification.

` ock in The Aichita B for Coo era ive 00.00

No changes have occurred in this account durint, the

current year, the stock bein6 held by the bank as additional security to their mortgage.

(32)

Stock in Ditch Companies, $460.00:

;e listed all the stock owned in other ditch cwi anies and found the certificates to be in order, but the value as

carried on the books 7robab1y has little relation to the real market value of the stock,

Prepaid Insurance, $110.90:

The amount of unexpired insurance at the close of the year was $110.90 as noted in the insurance scheaule attached to this repitrt. Fixed ssets, 42,970.811.49:

During the year the cost of the Frank -. 7idman ri:.:;ht of way in the sup of $2,763.71 was added to ditches and reservoirs, $7.00 WAS added to equipment and -cachinery account of sales tax

paid on compressor. -iscellaneous equip;.lent was increased by $76.50, or a total of 42,847.21 to the fixed assets account.

:3ertificate of Participation. First National bank, $690.5Q: During the year a dividend was paid by the old First National Bank in the sum of $106.24, leaving a balance of $690.59 still due the Company and which of course is of very doubtful value. Current Liabilities, 10,

086.69:

Current liabilities consist larely of notes payable in the sum of $5,500.00, a schedule of Which is made a part of this renort, and accrued interest and excise

taxes.

The notes of

$5,500.00 are ..lue to Alex Nelson which has been confirmed to us by direct correspondence, the accrued interest on this sum being

455.63.

The accrued interest on the mortgage note to The Wichita Bank for Cooperatives is 73,873.25 which also has been confirmed by direct correspondence.

v,ortgages Payable, 4579.400.00:

During the past year $20,600.00, representing the install-ment due, was 7aid on the Wichita loan, reducinj the balance to

1579,400.00.

Net ",orth. ;21970,057.81:

Assents levied for capital purDoses

were

added to the capital surplus, while the'net operating loss

was

added to the operating deficit. ;fter deducting depreciation in the sum of $24,801.14, the final net loss for the year was $33,849.56. The net loss from o .eration, not including depreciation as

ign

expense,

was $9,084.42, which indicates that

last

year's assessment was not high enou h to meet the regular operating expenses and probably should have been $1.00 per share higher than was levied.

(33)

THE NORTH POUDR7 IRRI3ATIfl: COMPANY BALANCE SHEET STTrIMENT

DECETTER 31, 1938

Currents

Cash in Till First Nat'l Bank Fort Collins-Petty Cash Notes Receivable -1937 Assessments 1938 Assessments 1938 Special Assessments Commissary Inventory Lease Section 36969 -Investmentss MP MO OM ASSMS

Stock "'ichita Bank for Cooperatives stock in Other Ditch Companies

Prepaid Expenses Insurance

-ixed Assets:

Ditches and Aeservoirs -Less Depreciation Reserve-Buildings and Imnrovements Less Depreciation Reserve-Office Equipment Less Depreciation ReserveTransportation Equipment -Less Depreciation ReserveTools and Vachinery -Less Depreciation Reserve-Steam Shovel Less Denreciation ReserveWiscellaneous Equipment -Less Depreciation Reserve-Intangibles: $49.26 235.17 10.00 $294.43 50.00

.72

10,172.31 590.55 3 0.56 182.95

r:330,500.00

460.00 $11,b71.52 30,960.00

110.90

33,312,077.84

148,600.00 $2,963,477.84

$14,885.24

9.648.86 5,36.38

$59.70

152.61 107.09

U,427.57

1,123.21 304.34

,665.53

453.60 1,211.93

4459.80

344.66 114.94

$753•C1

394.08 358.97 2,970,811.49

Priorities and "ater

Rights

-Assets of Doubtful Values

Certificate of Participation, First Nat'l Bank of Ft. Collins TOTAL ASSETS

545,100.00

690.59

(34)

TIM NORTH POUnRE IRRIT,TION COMPANY BALANC7 W'Tri1 311 11,717:11T

nnc72YBral

31, 1938

LIABILITIES AND NET T1ORTH 17urrents

Notes Payable kccounts Payable Scurvin Ditch leneral Taxes Accrued Old Age Benefits Accrued -Unemployment Compensation Interest Accrued on Notes Interest Accrued on Note and

Yort,-Ige to "iiehita Bank for Cooperatives fixeds

AIN

op

411.

Note and Yortgage to Tichita bank for Cooperatives, Dated 11/1/36, due serially, Interest 4% M-N 1. Jet '''orths

Capital ;tock 9999.94-13/18 3hares 450.00 par - -Premium on lapital 3tock Capital Surplus Surplus Arising from

Assess-ments on Capital Aock for Capital Purposes -Add* 1938 Assessments $2.05

per share

Operating 3urplus leficit -Add: Adjustment len'l Taxes-Deducts Adjustment Insurance Adjusted Surplus Deficit Adds 1238 (\perating Loss -Net -orth $229,493.74 20,499.9 $425,593.07

60.06

3425,653.13 102.50 $425,550.63

33,849.56

$5,500.00

452.75

60.06

39.58 105.22_

55.83 3,873.25 410,066.69

$499,997.36

3,450.00

2,676,017.01

249,993.63

(459,400.19)

TOTAL LIABILITIES AND NET WORTH

579,400.00

2,970,057.81

(35)

THE NORTH POUDR7 IRRIGATION COVPANY PROFIT AND LOSS STATEMENT

JANUARY 1, 1938 TO D7,CEEBER 31, 1938

Incomes

Assessments for Operation lnd raintenance -3pecia1 Assessments for Water

Purchased Fossil Creek Assessment

-Right Assessment '7ater Rentals Leases Transfer Fees Yiscellaneous Operating 7xpense: Ditch Riders $2,821.30

Gate Tensfers and -latchmen - 1,314.64

Miscellaneous 10.00

Assessments on "ater Stock -ii7ater Purchased and Tollage Vaintenance "xpenses

Labor

OP

SS

Vaterials and Supplies -Buildings r.quipment 3enera1 7xpenses

lalaries of Officers

Directors Per Diem & 7xpnese office Suppiies and lxpense Legal Telephone and Tele.raph -Old Age Benefits Tax Unemployment .'7ontributions service Tax Auto Tax County General, 1938 Insurance Rent and Light

ea IMO 4110

337.25 9,022.27

$8,528.90

2,99i.57

8.09 1,230.71

44,7q9.00 324.58 573.06

750.00

376.60

173.50

519.91

23.15

11.75

60.06

655.73

324.43 $39,499.80

7,500.12

600.00

25.00 220.23 225.00 23.00 85.00

.313,515.66

12,763.27

$48,178.15

8,591.77

34,060.70

Net Operatin4 Profit Exclusive

(36)

PROFIT AND 1,01S STATM•reNT

JANUARY 1, 1938 TO DECYVBER 31, 1938

Net Operating Profit ( -13cclusive of

Depreciation) Brought Forward - _$13,317.45

Non-Operating Income and 7apenses

Commissary 3ales $1,096.90 Opening Inventory

$7.66

Purchases _092.14

Tt,449.60

Less Closing Inventory - - - - 30.56 6 1,069.24

ret Gain _$27.66

-Interest Received _651.46

Dividends Received Cil Royalties _500.00 Balance Available for Interest

Interest raid on lortgage

$23,394.16

Interest Paid on Notes - _150.83

Net Loss 7xclusive of Depreciation Adds

Depreciation

NET LOSS FOR YEAR

1,179.12 $14,496.57 23,544.99' $9,048.42 24,601.14

81diailtjut

(37)

THE NORTH POUDRE IRRIGATION COMPANY CA3H STATEMENT

J4NUARY 1 TO DECEMBER 31, 1938

10 ,111.0.P.10411W40

RECEIPTS

Cpenin - Balance January 1, 1938 46,178.65 Dividend First National Bank 40106.24

1937 Assessments 11,036.47

1938 and

1939

Assessments 49,827.38

3pecial Assessments 6,909.57

Fossil "'reek Assessments 600.00 -Old Right Assessments 25.00

Transfer Fees e3.00

Interest _651.46

Notes Payable lurrent 13,500.00

Commissary 13.80

-ater Rentals 220.3

Leases 36 -

_{9 - 69}

120.00

Expense Refunds as

_35.91

7xpense Refunds Telephone 70.74

!raintenance 49.28

Buckeye Lateral 1,001184

Yiscellaneous Income 250.00

Oil and as Rents, aoyalties and Leases - 500.00 84,942.92

(38)

rpening Balance

CAV STATEMINT

DISBURSIITNTS

Buckeye Lateral Coimissary Directors Per Diem

Ditches and Reservoirs: Waintenance Maintenance on "iquipment Michigan Pitch Operation Ditch Assessments Tollage -ater General rffice 7quipment Interest -Legal Legal Nidman) Notes Payable rotes Payable Rent and Light

Salaries

170cpense ::::::

(Mort,,;age) (Current)

Taxes and Insurance Taxes ."3ocial 'lecurity Telephone Lease 36 -

9 - 69

Less: Commissary Rent Telephone Social Security Tax

TOTAL DISBT-ISWENTS OD OM MN ID

$938.27

892.14

324.58. 8,241.82

1,266.62

3,616.84

3,934.89

337.25

1.559.73 7,462.54

573.06-63.5o

_3,626.87

750.00-2,763.71

eop600.00

8,00mo

324.43 4,799.00v

759.0

776.

453.25

74.90 $92,159.07

$1,083.10

6o.00

5.91 172.92 1,321.93

Cash Balance necember 31, 1938

Cash in Till

Cash in First National Bank

ti9l,La.57

90,837.14 $284.43 )-$49.6 235.17 $264.4

(39)

.111/18

Wicnita Bank for

Oooperatives 600,000.00 4% k-N 1.

First Natll Bank 8% 4/28/38

THE NORTH POUDRE IRRIGATION COMPANY MORTGAGES AND NOTES PAYABLE

DEMMER 31, 1938 20,600.00 41111.111111.1.111 Credits

12/31/38 1/1/18

579,400.00

4,010.96

--INTEREST Debit* 23,531.87 ACCRUED--Credits

12/11/1Q

23,394.16

3,873.25

160o

lito.00, 201600.vo

579,400.00

4,010.96

231. 31.87

23,394.16 3,873.25

Charles N. Laidlsw 4/28/38 - 6% Alex Nelsou 4/27/38 -

670 1u/26/38 -

6$

10/26/38 -

dr$

12/21/38 -

6°6

(5/9 1,000.00) (5/13 2,000.00) (5/17 1,000.00)

2,000.00

2,000.00 4,000.00 2,000.00 2,000.00 2,000.00 3,000.00 500.00

.00

.00 .00 2,000.00 3,000.00 500.00

13.33

8.67

73.00

13.33

8.67

73.00 22.00 33.00 .83 f„8,000.00 13,500.00 5,500.00

95.00

150.83

.00 .00 .00 22.00 33.00

.83

55.83

(40)

(41)

books of 1938 are decision, H. WINFIELD ROGERS, R. A. Associate ANTHONY S. ROGERS, Ph. B. REGISTERED ACCOUNTANT

Suite 210 Alpert Block FORT COLLINS, COLORADO AUDITOR'S REPORT

THE ITORTH POUDRE IRRIGATION CUPkITY DECEUBER 31, 1938

Gentlemen:

1-ELF:PHONE 613

We have examined the books and accounts of The North Poudre Irrigation Company for the year ending December 31, 1938, and have prepared the accompanying Balance Sheet as of that date and Statement of Profit and Loss for the year then ended.

Investments in stock of ditch compERies_, as shown by the Company's record, 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 30, 1938.

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 the Company, all assets and liabilities of December 31, reflected in the accompanying Balance Sheet.

The claim of Frank E. Widman has been settled by court the costs of which are s1..mmari7ed as follows:

Attorney fees

District Court costs Directors 15.6 acres real estate Bridge - - - _ -Appraisal - -

-Damages and

settlement-0111 •MIS

,;573.75

94.90

38.00

390.00 300.00 45.00 11322.06 $2,763.71

(42)

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 satisfied ourselves that all income from assessments, water rentals, preferred rights, and leases has been properly

accounted' for.

On the above basis, we are of the opinion that the attached Balance Sheet fairly sets forth the financial condition of the Company at December 31, 1938, and that the attached

Statement of Profit and Loss correctly summarizes the recorded profit and loss for the year ended that date.

Very truly yours,

(43)

BALANCE MEET Cash, :',,294.43:

Cash on hands consists of the following: cash in till, $49.26; First National Bank, Fort Collins, $235.17; petty cash,

0.00; total $294.43.

Notes Receivable, :25u.00:

The only note held by the Company is one given by W. A. Vance in favor of The Mountain and Plains Irrigation Company and endorsed by them to The North Poudre Irrigation Company. No pay-ments have been made on this note during the past year. Interest

is paid to April 21, 1938. The note is secured by certificate nura-ber 48, representing 4* preferred rights in The Mountain and Plains Irrigation Company.

Ixsses=ents, $10, 763.58:

The following unpaid assessments remained on the books on the closing date:

1937 Assessments _ _ -1938 Assessments - _ _ _ 1938 Special Assessments-$.72 10,172.31

590.55 $10,763.58

At the annual stockholders' meeting held on February 7, 1938 the following levy was made upon each share of stock in the Company:

2.35 per share for interest on mortgage note

2.05 per share for the liquidation of indebtedness 1.60 per share for operation, maintenance and

miscellaneous expenses $6.00 Total per share.

A further special assessment of

750

per share was levied for the

purpose of purchasing additional water, due and payable July 1, 1938. 3.00 per share of said assessment to be payable on April 1, 1938, and .3.00 per share of said assessment to be payable on October 1, 1938, and that all past due installments of said assessments shall bear interest at the rate of eight percent per annum until paid. Commissary Inventories .56:

We inspected the detailed inventory of machinery and

supplies on hand as submitted by employees, but did not make further verification.

Stock in The Wichita Bank for Cooperatives, $30.500.00:

No changes have occurred in this account during the

current year, the stock being held by the bank as additional security to their mortgage.

(44)

Stock in Ditch Companies, $460.00:

We listed all the stock owned in other ditch com)anies and found the certificates to be in order, but the value as

carried on the books probably has little relation to the real market value of the stock.

Prepaid Insurance, ;110.90:

The anount of unexpired insurance at the close of the year was $110.90 as noted in the insurance schedule attached to this report. Fixed Assets, $2,970.811.49:

During the year the cost of the Frank 7. Widman right of way in the sum of $2,763.71 was added to ditches and reservoirs, $7.00 was added to equipment and machinery account of sales tax

paid on compressor. r7isce11aneous equipment was increased by $76.50, or a total of $2,847.21 to the fixed assets account.

Certificate of Participation First National hank, 3690.59: During the year a dividend was paid by the old First National Bank in the sum of $106.24, leaving a balance of $690.59 still due the Company and which of course is of very doubtful value. Current Liabilities, $10, 086.69:

Current liabilities consist largely of notes payable in the sum of $5,500.00, a schedule of which is made a part of this report, and accrued interest and excise taxes. The notes of

$5,500.00 are due to Alex Nelson which has been confirmed to us by direct correspondence, the accrued interest on this sum being

$55.83.

The accrued interest on the mortgage note to the Wichita Bank for Cooperatives is $3,873.25 which also has been confirmed by direct correspondence.

Mortgages Payable, t579,400.00:

During the past year $20,600.00, reoresenting the install-ment due, was paid on the Wichita loan, reducing the balance to

$579,400.00.

Net Worth, $2,970,057.81:

Assents levied for capital purposes were added to the capital surplus, while the net operating loss was added to the operating deficit. After deducting depreciation in the sum of $24,801.14, the final net loss for the year was $33,849.56. The net loss from o9eration, not including depreciation as an expense, was $9,084.42, which indicates that last year's assessment was not high enou h to meet the regular operating expenses and probably should have been $1.00 per share higher than was levied.

(45)

Current:

Cash in Till

First Nat'l Bank Fort Collins-Petty Cash -

--THE NORTH POUDRE IRRIGATION COMPANY BALANCE SHEET STATEMENT

DECEMBER 31, 1938 Notes Receivable

-1937

Assessments -1938 Assessments 1938 Special Assessments Commissary inventory Lease Section 36969 -OW On ow ▪ 01. 40 40

Asm-rs

$49.26 235.17 10.00 Investments:

Stock Wichita Bank for Cooperatives Stock in other Ditch Companies

Prepaid Expense:

Insurance Fixed Assets:

Ditches and Reservoirs WS INN

Less Depreciation Reserve-Buildings and Improvements Less Depreciation ReserveOffice Equipment -Less T)epreciation ReserveTransportation Equipment -Less Depreciation ReserveTools and Machinery -Less Depreciation Reserve-Steam Shovel Less Depreciation ReserveMiscellaneous Equipment -Less Depreciation Reserve-Intangibles:

Priorities and Water Rights Assets of Doubtful Value:

Certificate of rarticipation, First Nat'l Bank of Ft. Collins TOTAL ASSETS $294.43 250.00 .72 10,172.31

590.55

380.56

182.95

$30,500.00 460.00 $3,312,077.84

348,600.00 $2,963,477.84

$14,885.24

9,648.86 5,236.38

$259.70

152.61 _107.09

$11,871.52 30,960.00 110.90

$1,427.57

1,123.23 304.34

$1,665.53

453.60 1,211.93

$459.80

344.86 114.94

$753.0

394.08 358.97 2,970,811.49

545,100.00

6T

)

_!59

$3,559,544.50

(46)

THE NORTH POUDRE IRRIGATION COMPANY BALANCE SHEET ST&TEMENT

DECEMBER 31, 1938

LIABILITIES AND NET WORTH Current:

Notes ,Payable

Accounts Payable Scurvin Ditch General Taxes Accrued - Old Age Benefits Accrued Unemnloyment Compensation Interest Accrued on Notes -Interest Accrued on Note and

Yortgage to Wiehita Bank for Cooperatives Fixed:

Int

Note and Lortgage to Wichita Bank for Cooperatives, Dated 11/1/36, due serially, Interest 4% M-N 1. Net Worth:

Capital Stock 9999.94-13/18 Shares g $50.00 par Premium on Capital Stock -Capital Surplus Surplus Arising from

Assess-ments on Capital Stock for Capital Purposes - - -Add: 1938 Assessments $2.05

per share Operating Surplus Deficit -Add: Adjustment Gen'l Taxes-Deduct: Adjustment Insurance Adjusted Surplus Deficit Add: 1938 Operating Loss -Net Worth IMP $229,493.74 20,499.89

$425,593.07

60.06

$425,653.13 102.50 $425,550.63

33,849.56

$5,500.00

452.75

60.06

39.58

105.22

55.83 3,873.25 v.0,086.69

$499,997.36

3,450.00 2,676,017.01 249,993.63 (459,400.19)

TOTAL LIABILITIES AND NET WORTH

579,400.00

2,970,057.81

(47)

THE NORTH POUDR7 IRRIGATION COMPANY PROFIT AND LOSS STATEMENT

JANUARY 1, 1938 TO DECEMBER 31, 1938

41. Op •••

Income:

Assessments for Operation and

Maintenance $39,499.80 Special Assessments for Water

Purchased 7,500.12 Fossil Creek Assessment - -

600.00

Cld Right Assessment - - - 25.00 Water Rentals 220.23 Leases _225.00 Transfer Fees 23.00 Miscellaneous _85.00 Operating Expense: Ditch Riders $2,821.30 Gate Tenders and Watchmen - • 1,314.64 Miscellaneous 10.00 Assessments on 'later Stock - -

337.25

Water Purchased and Tollage - 9,022.27 $13,505.66

$48,178.15

Maintenance Expense:

Labor _$8,528.90

Materials and Supplies - - - - _2,99.57 Buildings 6.09

Equipment _{1,230.71 12,763.27}

General Expense:

Salaries of officers - - - $4,799.00 Directors Per Diem & 7xpnese - 324.58 Office Supplies and Expense - _573.06

Legal _750.00

Telephone and Telegraph - - - 376.60 Old Age Benefits Tax 173.50 Unemployment Contributions - - 519.91 Service Tax 23.15

Auto Tax _11.75

County General,

_{1938 6o.o6}

Insurance

655.73

Rent and Light 324.43 _8,591.77 _34,660.70 Net Operating Profit Exclusive

of Depreciation •

(48)

PROFIT AND LOSS STATEMENT

JANUARY 1, 1938 TO DECEMBER 31, 1938

Net Operating rrofit (Exclusive of

Depreciation) Brought Forward - $13,317.45 Non-Operating Income and Expense:

ComMissary Sales $1,096.90 Opening Inventory $557.66

Purchases 892.14

11,449.80 8

Less Closing Inventory - - - - 30.56 1069.24

Net Gain $27.66

Interest Received Dividends Received Oil Royalties Balance Available for Interest

651.46

500.00

Interest Paid on nortgage - $23,394.16 Interest Paid on Notes - - - - 150.83 Net Loss Exclusive of Depreciation

Add: Depreciation 1,179.12 $14,496.57 23,544.95 $9,048.42 24,801.14

NEa

_{LOSS FOR YEAR ---}

(49)

THE NORTH POUDRE IRRIGATION COMPANY CASH STATEMENT

JANUARY 1 _{TO DECEMBER 31, 1938}

Opening Balance January 1, 1938 Dividend First National Bank 1937 Assessments 1938 and

1939

Assessments Special Assessments Fossil Creek Assessments Old Right Assessments Transfer Fees Interest Notes Payable Current Commissary

7ater Rentals

RECEIPTS

Leases 36 -

9 -

69 Expense Refunds Gas rapense Refunds Telephone Maintenance Buckeye Lateral Miscellaneous Income Oil and Gas Rents, Royalties and

al .1 SO MO 0110 $106024 11,036047 49,827038

6,909.57

600.00

2.00 2300

651.46 13,500.0o

13.8o

220.23 120.00

35.91

70.74

49.28 1,003184

250.00 Leases _500.00

$6,178.65

84,942.92 TOTAL RECEIPTS $91,121.57

(50)

CASH STATEM7NT DISBURSEMENTS

Opening Balance

Buckeye Lateral _$938.27

Commissary _892.14

Directors Per Diem 324.58

Ditches and Reservoirs:

Maintenance 8,241.82 Maintenance on Equipment 1,266.62 Michigan Ditch --- - - - 3,616.84 Operation _3,934.89 Ditch Assessments

337.25

Tollage

_1,559.73

Water _7,462.54

General Office Expense 573.06 Equipment _ OD MP NO

83.0

Interest _23,626.7

Legal _750.00

Legal (Widman) 2,763.71

Notes Payable (Mortgage) 20,600.00 Notes Payable (Current) 8,000.00

Rent and Light 324.43

Salaries 4,799.00

Taxes and Insurance --- 759.09 Taxes Social Security 776058

Telephone _453.25 Lease 36 -

9 - 69 74.90

Less: Commissary $1,083.10 Rent

_6o.00

Telephone 5.91 Social Security Tax 172.92 TOTAL DISBURSEMENTS

Cash Balance December 31, 1938 -Cash in Till Cash in First National Bank

•111. $92,159.07 1,321.93 $91,121.57 90,837014 $284.43 $49.26 235.17 $284.43

(51)

THE NORTH POUDRE IRRIGATION COIJ,ANY MORTGAGES AND NOTES PAYABLE

DECELEER 31, 1938

4_1/38 _{Debits Credits 12431/38 1/1/38} Wichita Bank for

Cooperatives - 600,000.00 20,600.00 579,400.00 4,010.96 4% N 1. First Nat'l Bank 8% -4/28/38 $6004M0.00 20,600.00 579,400.00 _4i1010.96 4110. 411•1. (5/9 1,000.00) 4,000,00 .00 (5/13 2,000.00) (5/17 1,000.00) Charles N. Laidlaw 2,000.00 4/28/38 - 6% Alex Nelson 4/27/38 - 6% 10/26/38 - 6% /0/26/38 - 6% 12/21/38 - 6% 2,000.00 2,000.00 2,000.00 2,000.00 3,000.00 500.00 .00 .00 2,000.00 3,000.00 500.00 --IN1hEEST ACCRUED--Debits Credits 23,531.87 23,394.16 2,3,51.87 23,4394.16 13.33 13.33 12/11/18 3,873.25 .3.18743.25 .00 8.67 8.67 .00 73.00 73.00 .00 81000.00 13,500.00 5,500.00 22.00 22.00 33.00 33.00 .83 .83 95.00 150.83 55.83

(52)

NORTH POUDRE IRRIGATION COMPANY JOURNAL ENTRIES 12/31/38

Interest Paid Mortgage - - - - g ,1 $3,873.253 Interest accrued to 12/31/38 -

,

$3,873.25 Interest paid notes payable - - 482 55.83

Interest accrued --- 222 55.83

Alex Nelson to 12/31/?8.

Commissary Inventory 117 380.56

Commissary profti and loss - - 117 380.56 Transportation Equipment to

transfer Ford from Com.to Equip. Acct.

Depreciation 468 24,801.14

Depreciation reserve 241 24,801.14

Bldgs. & Imp.- - - - $744.26 Working Equipment - 24.22 Trans. Equipment - - 356.89 Tools & Equipment _ 162.06 Steam Shovel - - - - 45.98 Visc. Equipment - - 67.73 n. 8:. M. 23,400.00 $24,801.14 Surplus Taxes payable --- -To adjust to taxes for 1/1/38 and

to set up taxes accrued 12/31/38‘ Ditches and Reservoirs

-Widman

Attorney fees - - $573.75 District Court Costs 94.90 Directors 38.00 15.6 A. real estate- 390.00 Bridge 300.00 Appraisal 45.00 Damages and Settlement 1322.06

MEP

$2,763.71 Insurance accrued 12/1/8

-Insurance Paid

---Surplus 1/1/38 To adjust insurance accounts from

Jan. 1. to Dec. 31, 1938. 6o.o6 2,763.71 110.90 6o.o6 2,763.71 8.40 102.50

(53)

(54)

Date of Note

sate Pay.

Semi-Annually Time Name

Amt. of Note

Sal. Int. 12/31/31 3/7/30 6V 3 yrs. John Currie _{$ 5000.00 11) 103.82} 6/18,/30 3 yrs. George A. holler 1500.00 3.25 8/6/30 64 3 yrs. Eva r. Fox 2000.00 48.33 4/5/31

₆₉

2 yrs. J. L. Whitonan 7000.00 109.95 4/23/31 6% 2 yrs. C. N. Laidlaw 4500.00 51.00 4/231 2 yrs. Jessie.L. Laidlaw 2500.00 28.36 6/6/31 6% 3 yrs. D.A. or Emma Palebler 2200,00 9.16 9/9/31 6% 3 yrs. Harry Webster 3500.00 65.30 9/9/31 64 3 yrs. Gretchen Frederick 1000.00 18.66 4/20/32 6'24 2 yrs. J. L. Whiteman 1500.00 17.75 4/20/32 6*',4 3 yrs. John Currie 10000.00 135.42 5/29/32 6% 2 yrs. Yrs. Anna Meyer 1800.00 9.47 4/19/32 8:4 _{1st Natl. Bk. of Ft.} _11000.00 Collins Totals $ 53500.00 m1600.47 Paid 11000.00 1/1/33 _Outstanding _{t 42500.00} 1932 Int. .1...IMP.••••••••••••••• 1) 325.00 90.00 120.00 455.00 270.00 150.00 132.00 210.00 60.00 90.00 650.00 108.00 63.10 Total Int.

Paid Balance Paid Pr in. 1932 12/31/32 1932 1 t 428,82 1; 325.00 93.25 90.00 168.33 120.00 564,95 455,00 321.00 270.00 178,36 150.00 141.16 132.00 275.30 210.00 70.66 60.00 107.75 90.00 460.42 650.00 117.47 108000 63.10 63.10 103.82 3025 48.33 109.95 51.00 28.36 9.16 65.30 18.66 17.75 135.42 9.47 11,000.00 '2723.10 ';t3323.57 '2723.10 t600.47

(55)

ANTHONY S. ROGERS,

Ph.

B.

REGISTERED ACCOUNTANT

Suite 210 Alpert Block FORT COLLINS, COLORADO _UDITOR'S REPORT

TH7 ;0-1TH PCUDRE IRRIGATION COMPANY D7CEMBM

31, 1937

The North Poudre Irrigation Co. Fort Collins, Colorado Gentlemen:

TELEPHONE 613

January

13, 1938

We have examined the books and accounts of The North Poudre Irrigation Company for the year ending; December

31, 1937,

and have prepared the accompanying Balance Sheet as of that date and Statement of Profit and Loss for the year then ended.

Cash on hand was verified by actual count and cash in bank, as shown by the books, was reconciled with the regular monthly bank statement 'is furnished by th depositary.

Investments in stocks of Ditch Companies, as shown by the Company's record, were examined by us and found to be in order. Stock in the Wichita Bank for Cooperatives was verified from letters of

transmittal relative to the closing of the loan and by further con-firmation by the bank as of Decembe-

_{31, 1937.}

_{During the current}

year the change made in the Scurvin Ditch was completed at a cost of $33,610.01. In the fall of the previous year ,;10,171.15 was spent on this same work, making the total cost very close to ,43,000.00. About $1,200.00 additional was spent for miscellaneous tools and equipment.

Records Dertainin to capital stock issued and Fossil Creek preferred rights were examined by us and fount. to be correctly stated. During the year 17/40 of a share was sold, which brings the total

outstanding stock within $2.64 of an even 10,000 shares. fforts are being made to sell this small remainin_- fraction. Fossil Creek Rights have

been issued to

_{land owners in the amount of one hundred and fifty} rights. _{n assessment of ,:;4.00 per right is collected annually. In} addition to the above, there has been issued to

the

Wichita

Bank

for Cooperatives seventy-five rights as collateral to

the

note issue.

(56)

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

1937

are reflected in the accompanying Balance Sheet, with the exception of a suit instituted by Frank E. Widman in the sum of $7,027.96 and interest. This claim of ?Tr. widman is for right of way for damages incident to the construction of the new ditch referred to above. At

one time durincr the year Yr. Widman made an offer to settle this claim for ,fl,400.00, which offer was rejected by the board as being excessive.

The disbursements during the year have been verified by

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

satisfied ourselves that all income from assessments,

water rentals, preferred rights, and leases has been properly accounted for.

On the above basis, we are of the opinion that the attached Balance Sheet fairly sets forth the financial position of the Company at December

31, 1937,

_{and that the attached statement of Profit and}

Loss correctly summarizes the recorded profit and loss for the year ended that date.

Very truly yours,

CIL

(57)

BALANCE SHEET STATEYENT Cash

$6,188.65:

Cash on hands consists of the following: Cash in Till

'First National Bank, Fort Collins -Petty Cash

$301.54

5,877.11

10.00

The cash items consist of a Company checl in favor of J. YcCormick in the sur_ of $300.00 which is awaiting deliveri of deed

and of cash in the amount of $1.54. Notes Receivable $250.CO:

The only note which the Company is now carryin,. on its books is that of W. A. Vance in favor of The Mountain Plains Irrigation Co. and endorsed by the: to The North Poudre Irrigation Comi:)any. During the year there was a payment of $150.00 made on this note, reducing the balance due to $250.00. Interest has been paid to April 21,

1937.

This note is secured by _{preferred rights Gilmore Reservoir,} Certifi-cate Yo. 4E. During the latter part of the year, 1936, subsequent

to our audit, September 30, 1936, all other notes most of which repre-sented notes given in payment of oil royalties and totaling .13,440.25 were charged off. The J. W. Nichols contract in the sum of $1,293.63 was paid in full during this same period.

Assessments Receivablej $11,037.11:

Unpaid water assessments on the closing date of

1937

are approximately 8600.00 below the amount outstanding at the beginning of the year. A total assessment of _45.75 _{per share was levied for} the year

1937.

_{In order to avoid cor_plications with the Federal}

In-core Tax Department, this assessment was broken down into the following expense and capital items:

Interest on !,'ortgage Note $2.42 Liquidation of Indebtedness 1.00

Capital Expenditures _.20

Operation and Maintenance 2.13 Total

7575

During the past few years, the Company has been operating as a tax exempt corporation and the above division of the assessment is probably no longer necessary. The incident that brought about the income tax complication was the sale _{of oil royalties, and so far} as anyone can predict at the present _{time, there is no reason to}

believe thqt the Company will again be favored _{with any outside} in-come to the extent that was experienced _{in those years. The practice} of computing depreciation upon dams, _{reservoirs, and ditches arose} from these same circumstances.

Of the above assessment $2.75 per share _{was made payable} April 1, and $3.00. October 1,

1937,

_{with interest on past due}