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<br />Note 5: <br /> <br />Note 6: <br /> <br />Note 7: <br /> <br />Note 8: <br /> <br />Note 9: <br /> <br />~: . . ~~~ r~'~ <br />!il!;A"!'Ui1"'~" ,," ," i," <br /> <br />I~ i ~I~~~'~ <br /> <br />=- f <br />::,'f~'~!a, " <br />""'s' <br />~Ci! ,,~,.... ~i , <br />~ <br /> <br />THE BIJOU IRRIGATION COMPANY <br /> <br />NOTES TO FINANCIAL STATEMENTS <br /> <br />WATER RIGHTS AND DECREE <br /> <br />Water rights represent the estimated cost of water stock and three different water rights under <br />which the Company is entitled to withdraw 516 -1/3 cubic feet per second of water from the South <br />Platte River. During 1985, the Company acquired a new water decree, which allows for an <br />additional 600 cubic feet per second of water for augmentation purposes. Water rights summary is <br />as follows: <br /> <br />Water decrees <br />Water augmentation decree <br />Water stock - 980 units of Colorado Big Thompson <br />Total water rights and decrees <br /> <br />$139,000 <br />102,991 <br />1 <br />$241 992 <br /> <br />RISK MANAGEMENT <br /> <br />The Company is exposed to various risks of loss related to torts; theft of, damage to, and <br />destruction of assets; errors and omissions; injuries to employees; and natural disasters. The <br />Company purchases commercial insurance to cover all of the risks listed above. Settled claims <br />have not exceeded this commercial coverage in any of the past four years. <br /> <br />WATER LEASE <br /> <br />During 2005, 2004, and 2003, the Company leased its units of Colorado Big Thompson (CBT) <br />water to a company, A & W Services, Inc., under a cash lease agreement. The fee was $28,040, <br />$49,000, and $205,800, respectively. In 2002, the Company leased its CBT units to the Town of <br />Erie under a cash lease arrangement. The fee was $49,000. Prior to 2002, the Company had <br />exchanged the water deliverable from its CBT units with a municipality for other water used by the <br />Company in its irrigation system. The exchange program also called for the municipality to <br />reimburse the Company for the annual assessments on the CBT units. <br /> <br />FUND BALANCE DESIGNATION <br /> <br />The Board of Directors of the Company has designated $9,000 of the General Fund Balance for <br />contingencies. <br /> <br />PRIOR PERIOD ADJUSTMENT TO NET ASSETS <br /> <br />The Company has restated the balance of Capital Assets at December 31,2004 to properly reflect <br />the total amount of accumulated depreciation as reported in the Statement of Net Assets for the <br />first year under the GASB 34 reporting model. The Company has determined that the amount of <br />accumulated depreciation reported at December 31, 2004 was overstated by $69,587. The <br />restatement had no effect on the Change in Net Assets for the year ended December 31, 2005. <br /> <br />The Total Capital Assets have been corrected through the restatement of Net Assets at December <br />31, 2004. The summary of the restatement is as follows: <br /> <br />December 31, 2004 Net assets <br />As previously reported <br />Adjusted related to restatement <br />Accumulated depreciation <br />December 31. 2004 Net assets <br />As restated <br /> <br />$ 988,556 <br />68.587 <br /> <br />$1 057 143 <br /> <br />-12- <br />