7
In accordance with Government Auditing Standards, we have also issued our report dated August 22, 2003, on
our consideration of the Department’s internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, and contracts. That report is an integral part of an audit performed
in accordance with Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.
Our audits were conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the Legislative Department’s basic financial statements. The combining information, as shown on
pages 32 through 38, is presented for purposes of additional analysis and are not a required part of the basic
financial statements. The combining information has been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.



August 22, 2003
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LEGISLATIVE DEPARTMENT, STATE OF COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEARS ENDED JUNE 30, 2003 AND 2002
8

OVERVIEW OF THE FINANCIAL STATEMENTS:

This discussion and analysis of the Legislative Department’s (the “Department”) financial performance is a
required component of financial reporting under governmental accounting standards and was prepared by
the Department’s management. It is intended to provide an overview of the financial activities for Fiscal

Years ended June 30, 2003 and 2002 and it should be read in conjunction with the financial statements.
The financial statements begin on page 12. These financial statements reflect activities of six agencies:
General Assembly, Joint Budget Committee, Legislative Council, Office of the State Auditor, Office of
Legislative Legal Services, and Reapportionment Commission, when active.

Department Financial Statements:

The Department’s financial statements consist of fund financial statements and notes to the financial
statements.

Fund Financial Statements - A fund is a fiscal and accounting entity with a self-balancing set of accounts
that the Department uses to keep track of specific sources of funding and spending for a particular purpose.
The Department currently has three funds: the General Fund and two Special Revenue Funds. All three
funds are governmental funds.

Governmental Funds - All of the Department’s services are reported in the governmental funds which
focus on how money flows into and out of those funds and the balances left at year-end that are available
for future spending. The governmental fund financial statements provide a detailed short-term view of the
Department’s operations and the services it provides. Governmental fund information helps determine
whether there are more or fewer financial resources that can be spent in the near future to finance the
Department's programs. These funds are reported using modified accrual accounting, which measures
cash and all other financial assets that can readily be converted to cash.

The Department has an annual appropriated budget for its General Fund and Special Revenue Funds.
Budgetary comparison schedules have been provided on pages 14-17 to demonstrate compliance with
these budgets.

The basic governmental fund financial statements can be found on pages 12-17 of this report.

Notes to the financial statements - The notes provide additional information that is essential to a full

understanding of the data provided in the fund financial statements. The notes to the financial statements
can be found on pages 18-31 of this report.

Supplemental Information:

The financial statements are followed by a section of supplemental information. Combining financial
statements are presented for the General Fund and the Special Revenue Funds.
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LEGISLATIVE DEPARTMENT, STATE OF COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

YEARS ENDED JUNE 30, 2003 AND 2002
9


Condensed Combined Balance Sheets – Governmental Funds


2003 2002 Change

Total Assets $ 1,413,730 $ 2,236,397 $ (822,667)
Total Liabilities 2,183,508 2,015,901 167,607
(Deficit) Fund Balance $ (769,778) $ 220,496 $ (990,274)

Condensed Combined Statements of Appropriations, Revenues, Expenditures and
Changes in Fund Balances – Governmental Funds

2003 2002 Change


Total Appropriations and Revenues $ 31,084,698 $ 32,467,861 $ (1,383,163)
Total Expenditures 28,928,732 29,414,406 (485,674)
Excess of Appropriations and Revenues over
Expenditures

2,155,966 3,053,455 (897,489)
Total Other Financing Uses (3,146,240) (2,980,578) (165,662)
Excess (Deficiency) of Appropriations and
Revenues over Expenditures and Other
Financing Uses

(990,274) 72,877 (1,063,151)
Fund Balance – Beginning of Year 220,496 147,619 72,877
(Deficit) Fund Balance – End of Year $ (769,778) $ 220,496 $ (990,274)

The Legislative Department’s General Fund is primarily funded by appropriations from the State of
Colorado General Fund. The appropriations are supplemented by augmenting revenue as defined in the
State’s General Fund budget. The unspent appropriation and augmenting revenue revert to the State’s
General Fund and are not available for expenditure by the Department in subsequent fiscal years.

At the end of Fiscal Year 2003, the Department’s General Fund reported a deficit fund balance of
$1,517,614. This deficit fund balance is due to June 2003 salaries and related benefits being incurred but
unpaid at fiscal year end as required by Senate Bill 03-197. This law requires employee salaries to be paid
on a monthly basis as of the last working day of the month, except that, as of Fiscal Year 2003, salaries for
the month of June are paid on the first working day of July. The Department received the appropriation to
pay those salaries on July 1, 2003. In Fiscal Year 2002, the ending fund balance in the Legislative
Department’s General Fund was zero.

The Department’s Special Revenue Funds are also primarily funded by appropriations from the State of

Colorado. The appropriations are supplemented primarily by revenue earned on investments held with the
State Treasurer and revenue earned from the sale of publications on the history of the State Capitol. The
unspent appropriation and augmenting revenue does not revert to the State and are available for fund-
related expenditures in subsequent fiscal years. In Fiscal Years 2003 and 2002, the ending fund balances
in the Special Revenue Funds were $747,836 and $220,496, respectively. The increase of $527,340 or
239% was due to lower than anticipated costs for the 2002 ballot information booklet.
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LEGISLATIVE DEPARTMENT, STATE OF COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

YEARS ENDED JUNE 30, 2003 AND 2002
10


FINANCIAL ANALYSIS (CONTINUED):

Between June 30, 2002 and 2003, the Department’s total assets decreased from $2,236,397 to $1,413,730,
or $822,667 (37%). The change in total assets is largely due to the decrease in cash on hand from June 30,
2002 to June 30, 2003 for the Office of the State Auditor. During this period, total liabilities increased
from $2,015,901 to $2,183,508, or $167,607 (8%). This change is primarily the result of two offsetting
factors. First, there was an increase in liabilities across all agencies in the Department because of the need
to record incurred but unpaid payroll expenditures for June 2003, as required under SB 03-197, at June 30,
2003. However, this was largely offset by a decrease in outstanding liabilities related to contract services
for the Office of the State Auditor at June 30, 2003 compared to June 30, 2002. In total, these changes
resulted in a decrease in fund balances from $220,496 at June 30, 2002 to ($769,778) at June 30, 2003, or
$990,274.

GENERAL FUND BUDGETARY HIGHLIGHTS:


In Fiscal Years 2003 and 2002, state revenues declined and budgets were adjusted downward to reflect the
decreasing revenues. As a result, original budgets for both years were adjusted by supplemental
appropriations. Budgetary comparison schedules have been provided on pages 14-17.

Fiscal Year 2003 Budgetary Highlights:

During Fiscal Year 2003, the original budget was amended by several supplemental appropriations
resulting in an overall decrease of $4,574,969 from the Department’s original budget.

Senate Bill 03-209 amended the Department’s original budget resulting in a decrease of $3,069,371. The
original budget was further amended by a supplemental appropriation in Senate Bill 03-197, resulting in a
decrease of $1,522,871. The amount of this budget reduction was based on an estimate; the actual salaries
and benefits earned, but unpaid as of June 30, 2003 were $1,517,614. In accordance with generally
accepted accounting principles, the salary and related benefits are recorded as expenditures in the current
fiscal year. However, for budgetary purposes, those payments are reported as expenditures in the
following year. In addition, the delay in the payroll disbursement resulted in a significant increase in
accrued liabilities and a significant decrease in fund balance for the Department’s General Fund.

The budget was also amended by a supplemental appropriation in House Bill 02-1468 resulting in an
increase of $15,248 to cover increases to the Department’s contribution to employee’s health, dental and
life insurance. Funds were also contributed to cover the expenditures related to the Health Care Task
Force, which increased the budget by $2,025.
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LEGISLATIVE DEPARTMENT, STATE OF COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

YEARS ENDED JUNE 30, 2003 AND 2002

11


GENERAL FUND BUDGETARY HIGHLIGHTS (CONTINUED):

Fiscal Year 2003 Budgetary Highlights (continued):

The final General Fund budget for the Department was $30,292,469 and actual expenditures totaled
$27,818,653. The difference between the final budget and actual expenditures was $2,473,816, all of
which reverted back to the State of Colorado’s General Fund. Of this, $1,797,132 was from the general
administration appropriation and is primarily from unspent personal services budgets. In addition,
$633,324 was unspent from the welfare reform evaluation appropriation. Smaller amounts were from the
tobacco settlement audit, property tax study, and legal fee appropriations.

The Department’s original budget for Fiscal Year 2004 is approximately $2 million lower than the Fiscal
Year 2003 final budget. The Department will continue to reduce spending to help ensure that no over
expenditures occur.

Fiscal Year 2002 Budgetary Highlights:

During Fiscal Year 2002, the original budget was amended by a supplemental appropriation in House Bill
02-1376 resulting in a decrease of $1,824,627 from the Department’s original budget.

The difference between the final budget and actual expenditures was $2,595,183, all of which reverted
back to the State of Colorado's General Fund. Of this, $1,954,208 was from the general administration
appropriation and is largely from unspent personal services budgets. In addition, $219,701 was unspent
from the welfare reform evaluation appropriation and $258,002 from the property tax study appropriation.
Smaller amounts were reverted to the State General Fund from tobacco settlement audit, congressional
redistricting legal fees, and state redistricting appropriations.


REQUEST FOR INFORMATION:

This financial report is designed to provide a general overview of the Department’s finances. Questions
concerning any of the information provided in this report or requests for additional information should be
directed to Tracy Walsh, Accountant, Legislative Council, Room 029 State Capitol, Denver, CO 80203.



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LEGISLATIVE DEPARTMENT, STATE OF COLORADO
BALANCE SHEETS - GOVERNMENTAL FUNDS
JUNE 30, 2003 AND 2002
Special Special
General Fund Revenue Funds General Fund Revenue Funds 2003 2002
ASSETS
Cash (Note 2) 253,330$ 748,092$ 1,312,391$ 220,806$ 1,001,422$ 1,533,197$
Accounts receivable 118,245 - 196,491 - 118,245 196,491
Inter/intrafund receivables 294,063 - 506,709 - 294,063 506,709
TOTAL ASSETS
665,638$ 748,092$ 2,015,591$ 220,806$ 1,413,730$ 2,236,397$
LIABILITIES
Accounts payable 662,847$ 256$ 1,987,793$ 310$ 663,103$ 1,988,103$
Intrafund payable - - 22,983 - - 22,983
Accrued salaries and benefits (Note 3) 1,517,614 - - - 1,517,614 -
Deferred revenue 2,791 - 4,815 - 2,791 4,815
TOTAL LIABILITIES 2,183,252 256 2,015,591 310 2,183,508 2,015,901
(DEFICIT) FUND BALANCES
Reserved for specific purposes - 747,836 - 220,496 747,836 220,496
Unreserved (1,517,614) - - - (1,517,614) -

TOTAL (DEFICIT) FUND BALANCES (1,517,614) 747,836 - 220,496 (769,778)
220,496
TOTAL LIABILITIES AND FUND BALANCES 665,638$ 748,092$ 2,015,591$ 220,806$ 1,413,730$ 2,236,397$
Governmental Funds
Total
2003 2002
The accompanying notes are an integral part of these financial statements.
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LEGISLATIVE DEPARTMENT, STATE OF COLORADO
STATEMENTS OF APPROPRIATIONS, REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
YEARS ENDED JUNE 30, 2003 AND 2002
Special Special
General Fund Revenue Funds General Fund Revenue Funds 2003 2002
APPROPRIATIONS AND REVENUES
Appropriations
General Fund
28,601,460$ -$ 30,293,613$ -$
28,601,460$ 30,293,613$
Cash Fund and Cash Fund Exempt
1,691,009 - 1,744,253 -
1,691,009 1,744,253
Total Appropriations
30,292,469 - 32,037,866 -
30,292,469 32,037,866
Revenues
Miscellaneous revenues
Audit reimbursements
410,925 - 322,299 -

410,925 322,299
Interest income
- 71,627 - 41,475
71,627 41,475
Miscellaneous
301,999 5,000 63,096 15
306,999 63,111
Sale of State Capitol history memorabilia
- 2,678 - 3,110
2,678 3,110
TOTAL APPROPRIATIONS AND REVENUES
31,005,393 79,305 32,423,261 44,600 31,084,698 32,467,861
EXPENDITURES
Compensation
20,112,572 - 19,472,403 -
20,112,572 19,472,403
Purchased services
3,882,325 1,207,428 5,450,546 159,121
5,089,753 5,609,667
Operating expenditures
2,636,218 297,537 2,909,630 242,045

2,933,755 3,151,675
Travel and subsistence
718,177 - 912,902 -
718,177 912,902
Capital expenditures
71,982 - 267,759 -
71,982 267,759
Debt service

2,493 - - -
2,493 -
TOTAL EXPENDITURES
27,423,767 1,504,965 29,013,240 401,166 28,928,732 29,414,406
EXCESS (DEFICIENCY) OF APPROPRIATIONS AND
REVENUES OVER EXPENDITURES
3,581,626 (1,425,660) 3,410,021 (356,566) 2,155,966 3,053,455
OTHER FINANCING SOURCES (USES)
Capital lease proceeds
40,500 - - -
40,500 -
Operating transfers in (out)
(1,953,000) 1,953,000 (429,443) 429,443
- -
Reversion of non-augmenting revenue
(712,924) - (385,395) -
(712,924) (385,395)
Reversion of General Fund appropriation
(1,793,268) - (2,340,634) -
(1,793,268) (2,340,634)
Reversion of cash/cash exempt appropriation
(680,548) - (254,549) -
(680,548) (254,549)
TOTAL OTHER FINANCING SOURCES (USES)
(5,099,240) 1,953,000 (3,410,021) 429,443 (3,146,240) (2,980,578)

EXCESS (DEFICIENCY) OF APPROPRIATIONS AND
REVENUES OVER EXPENDITURES AND OTHER
FINANCING SOURCES (USES)
(1,517,614) 527,340 - 72,877

(990,274) 72,877
FUND BALANCES, BEGINNING OF YEAR
- 220,496 - 147,619
220,496 147,619
(DEFICIT) FUND BALANCES, END OF YEAR (1,517,614)$ 747,836$ -$ 220,496$ (769,778)$ 220,496$
2003
Governmental Funds
Total
2002
The accompanying notes are an integral part of these financial statements.
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LEGISLATIVE DEPARTMENT, STATE OF COLORADO
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (BUDGET BASIS)
YEAR ENDED JUNE 30, 2003
Legislative Long Favorable
Appropriations Appropriations Supplemental (Unfavorable)
Bill Bill Appropriations Transfers Budget Actual Variance
APPROPRIATIONS AND REVENUES
Appropriations
General Fund
28,601,460$ 28,601,460$ -$
Cash Fund and Cash Fund Exempt
1,691,009 1,691,009 -
Total Appropriations
30,292,469 30,292,469 -
Revenues
Miscellaneous revenue
Audit reimbursements

- 410,925 410,925
Miscellaneous
- 301,999 301,999
TOTAL APPROPRIATIONS AND REVENUES
30,292,469 31,005,393 712,924
EXPENDITURES BY APPROPRIATION
General administration
28,492,896$ -$ (3,739,994)$ 783,072$ 25,535,974 23,738,842 1,797,132
Property tax study
- 840,000 (120,000) - 720,000 718,966 1,034
Welfare reform evaluation
1,500,000 - (500,000) - 1,000,000 366,676 633,324
Capitol complex leased space
- 949,470 - - 949,470 949,470 -
Ballot analysis - operating transfer out
- 2,170,000 (217,000) - 1,953,000 1,953,000 -
Tobacco settlement audit
98,984 - - - 98,984 59,350 39,634
Legal services
- 11,242 -
- 11,242 8,550 2,692
Purchase of services from computer center
- 9,002 - - 9,002 9,002 -
Workers' compensation
- 8,788 - - 8,788 8,788 -
Health care task force
- - 2,025 - 2,025 2,025 -
General liability / property insurance
- 3,984 - - 3,984 3,984 -
Salary survey

- 783,072 - (783,072) - - -
TOTAL EXPENDITURES BY APPROPRIATION
30,091,880 4,775,558 (4,574,969) - 30,292,469 27,818,653 2,473,816
EXCESS OF APPROPRIATIONS AND REVENUES
OVER EXPENDITURES AND TRANSFERS
- 3,186,740 3,186,740
OTHER FINANCING USES
Reversion of non-augmenting revenue
- (712,924) (712,924)
Reversion of General Fund appropriation
- (1,793,268) (1,793,268)
Reversion of Cash/Cash Exempt appropriation
- (680,548) (680,548)
TOTAL OTHER FINANCING USES
- (3,186,740) (3,186,740)
APPROPRIATIONS AND REVENUES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES
- - -
FUND BALANCES, BEGINNING OF YEAR
- - -
FUND BALANCES, END OF YEAR
-$ -$ -
$
The accompanying notes are an integral part of these financial statements.
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LEGISLATIVE DEPARTMENT, STATE OF COLORADO
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (BUDGET BASIS)
YEAR ENDED JUNE 30, 2002

Legislative Long Favorable
Appropriations Appropriations Roll Forward Supplemental (Unfavorable)
Bill Bill Appropriations Appropriations Transfers Budget Actual Variance
APPROPRIATIONS AND REVENUES
Appropriations
General Fund
30,293,613$ 30,293,613$ -$
Cash Fund and Cash Fund Exempt
1,744,253 1,744,253 -
Total Appropriations
32,037,866 32,037,866 -
Revenues
Miscellaneous revenue
Audit reimbursements
- 322,299 322,299
Miscellaneous
- 63,096 63,096
TOTAL APPROPRIATIONS AND REVENUES
32,037,866 32,423,261 385,395
EXPENDITURES BY APPROPRIATION
General administration
26,990,184$ -$ 346,500$ (413,800)$ 650,448$ 27,573,332 25,619,124 1,954,208
Property tax study
- 805,000 263,118 (13,000) - 1,055,118 797,116 258,002
Welfare reform
1,500,000 - 552,488 (1,000,000) - 1,052,488 832,787 219,701
Capitol complex leased space
- 905,778 - 35,664 - 941,442 941,442 -
Redistricting
602,792 - 8,418 - (1,249) 609,961 595,232 14,729

Ballot analysis - operating transfer out
- 952,000 - (522,557) - 429,443 429,443 -
Congressional redistricting legal fees
200,000 - - - -
200,000 86,305 113,695
Tobacco settlement
- - - 85,942 - 85,942 51,094 34,848
Cost of living study
- 56,000 - - - 56,000 56,000 -
Legal services
- 10,985 - - - 10,985 10,985 -
Purchase of services from computer center
- 9,596 - - - 9,596 9,596 -
Workers' compensation
- 6,856 - (330) - 6,526 6,526 -
Health care task force
- - - 4,006 - 4,006 4,006 -
General liability / property insurance
- 3,579 - (552) - 3,027 3,027 -
Salary survey
- 649,199 - - (649,199) - - -
TOTAL EXPENDITURES BY APPROPRIATION
29,292,976 3,398,993 1,170,524 (1,824,627) - 32,037,866 29,442,683 2,595,183
EXCESS OF APPROPRIATIONS AND REVENUES
OVER EXPENDITURES AND TRANSFERS
- 2,980,578 2,980,578
OTHER FINANCING USES
Reversion of non-augmenting revenue
- (385,395) (385,395)
Reversion of General Fund appropriation

- (2,340,634) (2,340,634)
Reversion of Cash/Cash Exempt appropriation
- (254,549) (254,549)
TOTAL OTHER FINANCING USES
- (2,980,578) (2,980,578)
EXCESS OF APPROPRIATIONS AND REVENUES
OVER EXPENDITURES, TRANSFERS, AND OTHER
FINANCING SOURCES (USES)
- - -
FUND BALANCES, BEGINNING OF YEAR
- - -
FUND BALANCES, END OF YEAR
-$ -$ -$
The accompanying notes are an integral part of these financial statements.
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LEGISLATIVE DEPARTMENT, STATE OF COLORADO
BUDGETARY COMPARISON SCHEDULE - SPECIAL REVENUE FUNDS (BUDGET BASIS)
YEAR ENDED JUNE 30, 2003
Legislative Long Favorable
Appropriations Appropriations Supplemental (Unfavorable)
Bill Bill Appropriations Transfers Budget Actual Variance
APPROPRIATIONS AND REVENUES
Appropriation
Ballot Information and Publication Fund
1,953,000$ 1,953,000$ -$
Augmenting revenue
Sale of State Capitol history memorabilia
- 2,678 2,678

Miscellaneous revenue
Interest income
- 71,627 71,627
Miscellaneous
- 5,000 5,000
TOTAL APPROPRIATIONS AND REVENUES
1,953,000 2,032,305 79,305
EXPENDITURES BY APPROPRIATION
Ballot analysis - operating transfer in
-$ 2,170,000$ (217,000)$ -$ 1,953,000 1,504,741 448,259
Public building
- - - - - 224 (224)
TOTAL EXPENDITURES BY APPROPRIATION
- 2,170,000 (217,000) - 1,953,000 1,504,965 448,035
EXCESS OF APPROPRIATIONS AND REVENUES
OVER EXPENDITURES AND TRANSFERS
- 527,340 527,340
FUND BALANCES, BEGINNING OF YEAR
- 220,496 220,496
FUND BALANCES, END OF YEAR
-$ 747,836$ 747,836$
The accompanying notes are an integral part of these financial statements.
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