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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICO

FINANCIALSTATEMENTS

JUNE30,2014

TABLEOFCONTENTS


INTRODUCTORYSECTIONOfficialRoster..........................................................................................................................1

FINANCIALSECTIONReportofIndependentAuditors.....................................................................................3Management’sDiscussionandAnalysis......................................................................7

BASICFINANCIALSTATEMENTSGovernment‐WideFinancialStatements StatementofNetPosition–GovernmentalActivities....................................19 StatementofActivities–GovernmentalActivities..........................................20GovernmentalFundFinancialStatements BalanceSheet–GovernmentalFunds...................................................................21 StatementofRevenues,ExpendituresandChanges inFundBalances–GovernmentalFunds.......................................................22 ScheduleofRevenuesandExpenditures–BudgetandActual: GeneralFund...............................................................................................................23 ScheduleofRevenuesandExpenditures–BudgetandActual: MajorFund–RioMetroOperations.................................................................24 ScheduleofRevenuesandExpenditures–BudgetandActual: MajorFund–UnifiedPlanningWorkProgram‐FHWA#52...................25 NotestoFinancialStatements...................................................................................26

TABLEOFCONTENTS


SUPPLEMENTARYINFORMATIONDescriptionofNon‐majorSpecialRevenueFunds................................................45CombiningBalanceSheet–AllNon‐major GovernmentalFunds.................................................................................................49CombiningStatementofRevenues,Expenditures andChangesinFundBalances–AllNon‐major GovernmentalFunds.................................................................................................52StatementofRevenues,ExpendituresandChangesin FundBalances‐BudgetandActual–AllNon‐Major SpecialRevenueFunds.............................................................................................55

OTHERSUPPLEMENTARYINFORMATION

ScheduleofPledgedCollateral.......................................................................................62ScheduleofExpendituresofFederalAwards..........................................................63NotestoScheduleofExpendituresofFederalAwards.......................................64

COMPLIANCE

ReportofIndependentAuditorsonInternalControlOver FinancialReportingandonComplianceandOtherMatters BasedonanAuditofFinancialStatementsPerformed inAccordanceWithGovernmentAuditingStandards......................................65ReportofIndependentAuditorsonCompliancefor EachMajorFederalProgramandReportonInternalControl OverComplianceRequiredbyOMBCircularA‐133.......................................67SummaryScheduleofPriorAuditFindings.............................................................70ScheduleofFindingsandQuestionedCosts.............................................................71ExitConference.....................................................................................................................73

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OfficialRoster

June30,2014

DebbieO’Malley ChairpersonPhillipGasteyer Vice‐ChairpersonAdrianOglesby BoardMemberBradHill BoardMemberChristinaAinsworth BoardMemberDonHarris BoardMemberDonaldLopez BoardMemberDonaldRudy BoardMemberEdmondTemple BoardMemberEmilySanchez BoardMemberGlenWalters BoardMemberGloriaChavez BoardMemberIsaacBenton BoardMemberJackTorres BoardMemberJaniceArnold‐Jones BoardMemberJohnG.PhillipsIII BoardMemberKathyKorte BoardMemberKenSanchez BoardMemberLarryAbraham BoardMemberLawrenceRomero BoardMemberLeonOtero BoardMemberLonnieFreyburger BoardMemberM.StevenAnaya BoardMemberMarcSaavedra BoardMemberMaryAnderson BoardMemberNoraM.Scherzinger BoardMemberReyGarduno BoardMemberRichardBruce BoardMemberRickVelarde BoardMemberRobertChavez BoardMember

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OfficialRoster(Continued)

June30,2014RobertKnowlton BoardMemberRobertPerry BoardMemberRobertVialpando BoardMemberRonWilliams BoardMemberRoxanneMeyers BoardMemberRudyJaramillo BoardMemberTamaraGutierrez BoardMemberTedHart BoardMemberTheodoreBarela BoardMemberThomasSwisstack BoardMemberTimEichenberg BoardMemberTomZdunek BoardMemberVandoraCasados BoardMemberWayneAke BoardMemberWayneJohnson BoardMemberWilburLockwood BoardMember

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ReportofIndependentAuditors

TotheBoardofDirectorsMid‐RegionCouncilofGovernmentsofNewMexico andMr.HectorH.BalderasNewMexicoStateAuditorReportontheFinancialStatementsWehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivities,each major fund, the aggregate remaining fund information, and the budgetarycomparisons for the general fund andmajor special revenue funds of theMidRegionCouncilofGovernments(MRCOG),asofandfortheyearendedJune30,2014,andtherelated notes to the financial statements, which collectively comprise MRCOG’s basicfinancialstatementsaslistedinthetableofcontents.Wehavealsoauditedthefinancialstatements of each of MRCOG’s non‐major governmental funds and the budgetarycomparisons presented as supplementary information, as defined by the GovernmentAccounting Standards Board, in the accompanying combining and individual fundfinancialstatementsasofandfortheyearendedJune 30,2014,aslistedinthetableofcontents.Management’sResponsibilityfortheFinancialStatements

Management isresponsible forthepreparationandfairpresentationofthesefinancialstatements in accordancewith accounting principles generally accepted in theUnitedStatesofAmerica;thisincludesthedesign,implementation,andmaintenanceofinternalcontrols relevant to the preparation and fair presentation of the financial statementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Auditor’sResponsibility

Our responsibility is to express opinions on these financial statements based on ouraudit.Weconductedourauditinaccordancewithauditingstandardsgenerallyacceptedin the United States of America and the standards applicable to financial auditscontained inGovernmentAuditingStandards,issuedby theComptrollerGeneral of theUnited States. Those standards require thatwe plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of materialmisstatement.

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TotheBoardofDirectorsMid‐RegionCouncilofGovernmentsofNewMexico andMr.HectorH.BalderasNewMexicoStateAuditorAn audit involves performingprocedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror. Inmakingthoseriskassessments,the auditor considers internal control relevant to the entity’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in thecircumstances,butnot for thepurposeofexpressinganopiniononthe effectiveness of the MRCOG’s internal control. Accordingly, we express no suchopinion.An audit also includes evaluating the appropriatenessof accountingpoliciesused andthereasonablenessofsignificantaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.We believe that the audit evidencewe have obtained is sufficient and appropriate toprovideabasisforourauditopinions.Opinions

Inouropinion,thefinancialstatementsreferredtoabovepresentfairly, inallmaterialrespects, the respective financial position of the governmental activities, each majorfund,andtheaggregateremainingfundinformationoftheMRCOGasofJune30,2014,and the respective changes in financial position, and the respective budgetarycomparisonsforthegeneralfundandeachmajorspecialrevenuefundfortheyearthenendedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesof America. In addition, in our opinion, the financial statements referred to abovepresent fairly, in all material respects, the respective financial position of each non‐majorgovernmental fundand the respectivebudgetarycomparison for thenon‐majorfundsofMRCOGfortheyearendedJune30,2014,andtherespectivechangeinfinancialposition thereof for the year then ended in accordance with accounting principlesgenerallyacceptedintheUnitedStatesofAmerica.

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TotheBoardofDirectorsMid‐RegionCouncilofGovernmentsofNewMexico andMr.HectorH.BalderasNewMexicoStateAuditorOtherMatters

RequiredSupplementaryInformationAccounting principles generally accepted in theUnited States of America require thatthe management’s discussion and analysis on pages 7 through 19 be presented tosupplementthebasicfinancialstatements.Suchinformation,althoughnotapartofthebasicfinancialstatements,isrequiredbytheGovernmentalAccountingStandardsBoardwho considers it to be an essential part of financial reporting for placing the basicfinancialstatements inanappropriateoperational,economic,orhistoricalcontext.Wehaveappliedcertain limitedprocedures to therequiredsupplementary information inaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica,which consisted of inquiries of management about the methods of preparing theinformation and comparing the information for consistency with management’sresponses to our inquiries, the basic financial statements, and other knowledge weobtained during our audit of the basic financial statements. We do not express anopinionorprovideanyassuranceontheinformationbecausethelimitedproceduresdonotprovideuswithsufficientevidencetoexpressanopinionorprovideanyassurance.OtherInformationOur audit was conducted for the purpose of forming opinions on the financialstatementsand thecombiningand individual fund financial statementsandbudgetarycomparisons that collectively comprise MRCOG’s basic financial statements. Theaccompanying Schedule of Expenditures of Federal Awards as required by Office ofManagement and Budget Circular A‐133,AuditsofStates,LocalGovernments,andNon‐Profit Organizations, and the Schedule of Pledged Collateral as required by theNewMexicoStateAuditRule,arepresented forpurposesof additional analysis andarenotarequiredpartofthebasicfinancialstatements.The ScheduleofExpendituresofFederalAwardsandScheduleofPledgedCollateral arethe responsibility of management and was derived from and relates directly to theunderlyingaccountingandotherrecordsusedtopreparethefinancialstatements.Suchinformationhasbeen subjected to the auditingprocedures applied in the audit of thebasic financial statementsandcertainadditionalprocedures, includingcomparingandreconciling such information directly to the underlying accounting and other recordsused to prepare the basic financial statements or to the basic financial statements

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TotheBoardofDirectorsMid‐RegionCouncilofGovernmentsofNewMexico andMr.HectorH.BalderasNewMexicoStateAuditorthemselves, and other additional procedures in accordance with auditing standardsgenerally accepted in the United States of America. In our opinion, the Schedule ofExpendituresofFederalAwardsandScheduleofPledgedCollateralare fairlystated inallmaterialrespectsinrelationtothebasicfinancialstatementstakenasawhole.OtherReportingRequiredbyGovernmentAuditingStandardsInaccordancewithGovernmentAuditingStandards,wehavealso issuedareportdatedDecember15,2014,onourconsiderationoftheMRCOG’sinternalcontroloverfinancialreportingandonourtestsofitscompliancewithcertainprovisionsoflaws,regulations,contracts and grant agreements and other matters. The purpose of that report is todescribe the scope of our testing of internal control over financial reporting andcomplianceandtheresultsofthattesting,andnottoprovideanopinionontheinternalcontrolover financialreportingoroncompliance.Thatreport isan integralpartofanauditperformedinaccordancewithGovernmentAuditingStandardsand inconsideringMRCOG’sinternalcontroloverfinancialreportingandcompliance.

Albuquerque,NewMexicoDecember15,2014

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSISYearEndedJune30,2014The Mid‐Region Council of Governments of NewMexico (MRCOG) management’sdiscussionandanalysisprovidesanoverviewoftheMRCOG’smissionandfunction,recent program opportunities, and a brief discussion of the basic financialstatementsandthesignificantdifferencesininformationtheyprovide.COUNCIL’SMISSIONANDFUNCTIONTheMid‐RegionCouncilofGovernmentsofNewMexico(MRCOG)isanassociationof local governments and special units of governmentwithin the State’s PlanningDistrict Number 3. The MRCOG was established December 11, 1969, under theauthorityof theRegionalPlanningActandunder the JointPowersAct. Municipaland county government agencies in Bernalillo, Sandoval, Torrance, and ValenciaCounties, plusEdgewood in SantaFeCounty, aremembers, aswell as groups likeAlbuquerque Public Schools and the Middle Rio Grande Conservancy District.ElectedandappointedrepresentativesoftheseorganizationsserveontheMRCOG’sBoardofDirectorsandgivetheorganizationdirection.TheMRCOGwascreatedtoconductandcoordinateregionalplanning.Itprovidesaforum where local elected officials from across the region can meet and discussissuesthatdonotbeginorendatartificial,politicalboundaries.TheMRCOG’sroleis advisorywith theprimary task toprovidemembergovernmentswithdataandplanstoallowthemtomakebetterinformeddecisions.TheMRCOG’smissionistostrengthen individual communities by identifying and initiating regional planningstrategies through open dialogue and collaboration between the membergovernments.TheMRCOGprovidesavarietyofservicestoitsmembergovernmentsandisfundedthroughacombinationofparticipationfees,federal,stateandothergrants.Servicesprovided includeplanning and technical assistance in the fields of transportation,economicdevelopment,ordinances, zoning, job trainingandotherspecialprojectsas requested. Areas of technical expertise include map making and GeographicInformation Systems analysis; gatheringdata about population, employment, landuse, and traffic flow, aswell asdeveloping forecasts toprojectwhat these figureswillbeinthefuture.RECENTPROGRAMOPPORTUNITIESTransportation:TheMRCOGservesastheagentfortheRioMetroRegionalTransitDistrict and the New Mexico Department of Transportation for operation of theNewMexicoRailRunnerExpresscommuterrailserviceandseveraltransitservicesintheregion(Belen,LosLunas,RioRanchoandSandovalCounty). Thecommuterrailandtransitservicesarefundedthroughacombinationoffareboxrevenueandfees,FederalandStatefunds,andregionaltransitgrossreceiptstaxes.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014SinceFY2011,MRCOGhaspassedthroughfederalNewFreedommoniestoARCAtofundimplementationofaprogramthatteachesindependenttravelskillstopeoplewith cognitive challenges. The SMART Travel Program uses smart phones alongwithapplicationsspecificallydevelopedforthispurposebyAbleLinkTechnologies,aColorado‐basedcompany. Theactual system is called the “WayFinderSystem”,anditusespictures,words,audioprompts,andGPSlandmarkstohelpadultswithdevelopmentaldisabilitiessafelyridemasstransit. Theprogramhas farexceededitsexpectationssinceitstartedinFebruary2011.TheMRCOGhas received funding for aproject thatwill include the acquisitionofregional travel time information for the top30congested roadways, Interstate25andInterstate40intheAlbuquerquemetropolitanarea.Thegoaloftheprogramisto provide travel time data for use in the Congestion Management Process, thedevelopment of the Metropolitan Transportation Plan and other transportationplanning,programmingandprojectdevelopmentneeds.The University of New Mexico (UNM), Central New Mexico Community College(CNM), andSunport area is the focusof a study thatwill identifyhow transit canbestmeet thevarietyof transportationneedsassociatedwith thisarea–studentsandemployeestravelingtoclassesandjobs,residentstravelingwithinthearea,andtravelneedsassociatedwithbusinessactivitiesandotherdestinations in thearea.This study is a collaborative effort of the City of Albuquerque, Bernalillo County,UNM,CNM,andMRCOG,servingastheleadagency.WithnonewrivercrossingsplannedfortheAlbuquerquemetroarea,publictransitwillneedtoplayanincreasinglyimportantroleinmeetingregionaltransportationneeds.ThePaseodelNorteHighCapacityTransitStudy(PDNStudy)wasinitiatedto specifically identify how public transit can provide an alternative to privatevehicle travel and how it can meet some of the demand for trips across the RioGrande, from the northwestern portion of the metropolitan area to employmentdestinations like Journal Center/North I‐25 corridor east of the river. The PDNStudy is fundedby theFederalTransitAdministration,and itsgoal is to identifyatransit system that is cost effective and will improve mobility within the region,integratewith theexisting transit system,provideanattractivealternative toSOVtravel, connect employment and residential uses, provide economic developmentopportunitiesandencouragetransit‐supportivelanduses.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014TheMid‐RegionCouncilofGovernments’MetropolitanPlanningOrganizationistheonlyMPO in thenation tobe awardeda federal grant toparticipate in a scenarioplanningpilotprojectthatinvestigatesthechallengesofcongestion,sprawl,energy‐use,vehicleemissions,andwaterscarcityexacerbatedbyclimatechange.Scenarioplanning allows participants to consider the impacts of growth and evaluate thecostsandbenefitsofvarious futuredevelopmentpatterns.Theprojectwill informtransportation and land use decision‐making in the Albuquerque region by usingpotential growth scenarios to analyze strategies to reduce carbon pollution andpreparefortheimpactsofclimatechange.Regional Planning: The MRCOG maintains the Agribusiness Collaborative, anorganizationdedicatedtopreservingandimprovingtheagriculturaleconomyoftheregion.TheAgribusinessCollaborativemeetsmonthlyandiscomprisedoffarmers,foodprocessors, representativesof foodmarkets, educators, governmentagenciesand others interested in local agriculture. The MRCOG publishes a quarterlynewsletter focusing on building connections between local producers and localmarkets.TheMRCOGcontinuestoprovidecomprehensiveplanningandtechnicalassistancetolocalgovernmentsthroughouttheregion.CommunityplanningservicesarebeingprovidedtotheVillageofJemezSprings,CityofMoriartyandTownofPeralta.Economic Development: Since 1973, the MRCOG has been designated as theEconomicDevelopmentDistrictby theU.S.DepartmentofCommerce for the four‐county region of MRCOG. In support of this designation, the MRCOG providestechnicalandplanningassistancetoentitiesseekingfundsfromtheUSDepartmentof Commerce, Economic Development Administration (EDA). A three‐year EDAplanning grant to the MRCOG is currently in effect. MRCOG staff prepares andmaintainsasummarydocumentof theregion’seconomicconditions,developmentactivities, and strategies for improving local and regional economies in a reportentitled the Comprehensive Economic Development Strategy (CEDS). Variousorganizations use the CEDS report as a basis for taking actions to improve theeconomy.TheMRCOGreceivedoneoffiveInnovationCenterGrantsintheSouthwestregionfrom the U.S. Department of Commerce, Economic Development Administration(EDA). Thisprojectwillhave four focusareas: identifyingclustersof innovation,developing alternative workforce models to include “live‐work” scenarios,marketingtheregionthroughpublic‐privatepartnerships,anddevelopinglocalfoodentrepreneurs.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014OVERVIEWOFFINANCIALSTATEMENTSThis discussion and analysis are intended to serve as an introduction to theMRCOG’s basic financial statements. The MRCOG’s basic financial statementscomprise three components: 1) government‐wide financial statements, 2) fundfinancial statements, and 3) notes to the financial statements. This report alsocontains other supplementary information in addition to the basic financialstatementsthemselves.Government‐WideFinancialStatementsThegovernment‐widefinancialstatementsaredesignedtoprovidereaderswithabroad overview of theMRCOG’s finances, in amanner similar to a private‐sectorbusiness.ThestatementofnetpositionpresentsinformationonalloftheMRCOG’sassetsandliabilities,withthedifferencebetweenthetworeportedasnetposition.Overtime,increasesordecreasesinnetpositionmayserveasausefulindicatorofwhether the financial position of the MRCOG is improving or deteriorating. ThestatementofactivitiespresentsinformationshowinghowtheMRCOG’snetpositionchangedduringthemostrecentfiscalyear.Allchangesinnetpositionarereportassoon as the underlying event giving rise to the change occurs, regardless of thetiming of related cash flows. Thus, revenues and expenses are reported in thisstatementforsomeitemsthatwillonlyresultincashflowsinfuturefiscalperiods,such as expenses pertaining to earned but unused vacation and sick leave. All ofMRCOG’s activities are reportedunder governmental‐type activities and there areno component units. The government‐wide financial statements can be found onpages19‐20ofthisreport.FundFinancialStatementsA fund is a grouping of related accounts that is used to maintain control overresources that have been segregated for specific activities or objectives. TheMRCOG,likeotherstateandlocalgovernments,usedfundaccountingtoensureanddemonstratecompliancewithfinance‐relatedlegalrequirements.AllofthefundsoftheMRCOGaregovernmentalfunds.Governmentalfundfinancialstatementsfocusonnear‐terminflowandoutflowsofspendableresourcesaswellasonbalancesofspendableresourcesavailableattheendofthefiscalyear.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014Becausethefocusofgovernmentalfundsisnarrowerthanthatofthegovernment‐wide financial statements, it is useful to compare the information presented forgovernmentalfundswithsimilarinformationpresentedforgovernmentalactivitiesin the government‐wide financial statements. By doing so, readers may betterunderstand the long‐term impact of the government’s near‐term financingdecisions. Both the governmental fund balance sheet and the governmental fundstatement of revenues, expenditures, and changes in fund balances provide areconciliation to facilitate this comparison between governmental funds andgovernmentalactivities.TheMRCOGmaintainsthirty‐one(31)individualgovernmentalfunds.Informationis presented separately in the governmental fund balance sheet and in thegovernmental fund statement of revenues, expenditures, and changes in fundbalances for the general fund, Rio Metro Operations and Unified Planning WorkProgram(UPWP)‐FHWA,allofwhichareconsideredtobemajorfunds.Datafromthe other twenty‐eight (28) governmental funds are combined into a single,aggregated presentation. Individual fund data for each of these non‐majorgovernmental funds isprovidedintheformofcombiningstatementselsewhereinthisreport.The basic governmental fund financial statement can be found on pages 21‐22 ofthisreport.NotestotheFinancialStatementsThe notes to the financial statements provide additional information that isessential toa fullunderstandingofthedataprovidedinthegovernment‐wideandfund financial statements. The notes to the financial statements can be found onpages26‐44ofthisreport.BudgetaryComparisonsThe MRCOG does maintain a budget for informational and managerial purposes.ThebudgetisapprovedbytheMRCOG’sBoardofDirectorsonanannualbasis.Asrequired by the Office of the State Auditor Rule, 2 NMAC 2.2, a budgetarycomparisonstatementhasbeenprovidedforthegeneralfundinthebasicfinancialstatements, and the nonmajor special revenue funds budgetary comparisons arepresentedinsupplementaryschedules.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014FINANCIALANALYSISOFTHECOUNCILOverallFinancialPositionTheMRCOG’soverall financialpositioncontinues toremainstrong. MRCOG is thelargestMetropolitanPlanningOrganization(MPO)inthestateandthefederalfundsto administer theMPOhave remained stable. MRCOG is also aRegionalPlanningOrganization(RPO)andaLocalPlanningAgency(LPA). MuchofMRCOG’sgrowthoverthelast10yearsisattributabletoRioMetro,whichcontinuestoexpanditsrolein the region. MRCOG other planning activities continue to grow as MRCOGexpandsitsservicesandexpertiseintheregion.Overthepasttwenty‐twoyearsthenumberoffunds(projects)administeredbytheMRCOGhas increased from twelve (12)during fiscal year1992 to thirty‐one (31)duringfiscalyear2014.Totalexpendituresoverthesameperiod,includingcapitalprojects, have increased from $1.3million during the fiscal year ending June 30,1992to$11millionduringthefiscalyearendingJune30,2014.Nearlyfiftypercent(50%)ofcurrentyearexpendituresrelatetoRioMetrooperations.TheMRCOG’snetpositionincreasedby$92,530comparedtotheprioryear(from$3,069,026onJune30,2013to$3,161,556onJune30,2014). Theincreaseinnetposition was principally a result of the MRCOG utilizing a fixed with carry overindirectcostrate.ComparedtotheprioryearendingJune30,2013,theMRCOG’sTotalGovernmentalFunds expenditures remained relatively stable, increasing from $11.113 million(FY13) to$11.156million(FY14),achangeofapproximately$43,000. Within theindividual funds there were significant changes: Expenditures for Rio Metrooperations increased over by $600,000, however, Rail Runner Phase 2 and BelenPedestrianBridgeprojects,relatedtoRioMetroRailRunnercapitalprojects,endedinFY2013,decreasingexpendituresbyover$800,000fromFY13toFY14inthosefunds. Therewere several special projects thatMRCOG undertook during FY14,increasingexpendituresbyover$200,000fromFY13toFY14(UptownPedestrianStudy, Paseo del Volcan Corridor Study, Rio Metro MPO, Complete Streets &Agribusiness).

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014NetPositionTableA‐1summarizestheMRCOG’snetposition forthefiscalyearendedJune30,2014.Netpositionarepresentedonaconsolidatedbasisandarereflectedonafullaccrualbasis.TheMRCOGdidnothaveanybusiness‐typeactivitiesduringtheyearendedJune30,2014.

TableA‐1

MRCOG’sNetPosition

GovernmentalActivities6/30/14


CurrentAssets $ 5,294,083 $ 4,476,274CapitalAssets,netofAccumulated

Depreciation 3,925,669

3,627,393 TotalAssets $ 9,219,752 $ 8,103,667 TotalCurrentLiabilities $ 3,830,894 $ 3,238,758TotalLongTermDebt 2,227,302 1,795,883 TotalLiabilities $ 6,058,196 $ 5,034,641 NetPosition: NetinvestmentinCapitalAssets $ 1,639,847 $ 1,853,504Unrestricted 1,521,709 1,215,522 TotalNetPosition $ 3,161,556 $ 3,069,026

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014Changes inNetPosition: TheMRCOG’schange innetposition for fiscalyear2014wasanincreaseof$92,530.Thetablebelowreflectsthechangesinnetposition.

TableA‐2MRCOG’sNetPosition

Governmental

Activities6/30/14


Expenses–governmentalactivities $ (11,245,163) $ (10,743,787)Add:Chargesforservices 6,024,981 5,526,667Operatinggrants 5,311,440 5,480,064 Subtotal 91,258 (262,944) Generalrevenues–total 1,272 1,583 Changeinnetposition 92,530 264,527 Netposition–beginningofyear 3,069,026 2,804,449 Netposition–endofyear $ 3,161,556 $ 2,804,499

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014The following tablerelates to therevenuesandexpendituresof theGovernmentalFunds.

TableA‐3

ChangesinMRCOG’sRevenues,ExpendituresandchangesinFundBalances

GovernmentalFunds6/30/14

GovernmentalFunds6/30/13

Revenues: Federal $ 4.051.912 $ 3,984,749State 95,743 1,276,721ChargesforService 84,462 108,449Local 747,105 744,837ReimbursementofRioMetrocosts 5,467,985 4,886,049Interestandother 243,596 7,509Totalrevenues $ 10,690,803 $ 11,008,314 Expenditures: Operations 4,371,363 4,050,847Contractual 623,038 755,236ExpensesreimbursedbyRioMetro 5,457,793 4,860,826Capitaloutlay 551,275 1,300,676DebtService 152,621 145,897Totalexpenditures $ 11,156,090 $ 11,113,482 Excess(deficiency)ofrevenuesover expenditures (465,287) (105,168)OtherfinancingsourcesNetchangeinfundbalanceBeginningfundbalances

750,000284,713

1,310,849

‐(105,168)1,416,017

Endingfundbalances $ 1,595,562 $ 1,310,849The MRCOG’s total expenditures for government‐type activities during the fiscalyear2014were$11,156,091. The increase isrelativelysmallandtheneteffect isdue to the completion of the Commuter Rail Capital – Phase II project and BelenPedestrian Bridge project and the addition of the Agribusiness program and RioMetroMPO and several short‐term projects: Uptown Pedestrian Study, Paseo delVolcanCorridorStudy,andCompleteStreets.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014AnalysisofMajorFundsGeneralFund(Fund010):RevenuesintheGeneralFundincreasedapproximately$250,000.TheincreaseisdueprimarilytoMRCOG’sindirectcostratemethodology:fixedratewithcarryover. InFY14,MRCOG’sratewashigher thanactual indirectcosts incurred, causing an increase in general fund revenues. In FY15, MRCOG’srateswere determine based on this carry over so that amounts over collected inFY14 will be rectified by end of FY15. This method is acceptable per federalregulationsandisapprovedbyMRCOG’sfederaloversightagency.RioMetroOperations: RioMetroOperationsreportedbyMRCOGareonly thosecosts incurredbyMRCOG,suchaspayroll,andreimbursedbyRioMetro. InFY13,MRCOGreportedRioMetroOperationsinvariousfunds.InFY14,MRCOGcombinedall these funds intoone. This isdue to fact that this ishowRioMetroOperationsbudgetisapprovedbyandreportedtotheMRCOGBoard.In FY14, Rio Metro Operations expenditures totaled $5,467,985, an increase of$600,411fromFY13.ThisincreaseisduetothegrowthinRioMetrooperationsandthefillingofvacantpositions.UPWP–FHWA(Fund052):Expendituresincreasedbyover$100,000fromFY13toFY14. Costsinthisfundarereimbursedbyfederalhighwayplanningfundsandarerestrictedtotheamountoffundsprovided.InFY14,theamountauthorizedwasincreasedbyapproximately$184,000.Thiswastheresultoftheauthorizingagency(NMDOT)moving the fiscal period from state fiscal year to the federal fiscal yearandtheadditionofabridgeawardthatincreasedfunding.BudgetaryhighlightsThedifferencesbetweentheoriginalBudgetandfinalBudgetarediscussedbelow,aswellasbudgetvariancesintheGeneralFund:

GeneralFund:Thebudgetincreased$32,000fromoriginal.Thisadjustmentwas to provide for WCCNM salaries that MRCOG paid in excess of thecontract of $32,000 in FY13 but reimbursed by WCCNM in FY14. Thefavorablebudgetvarianceswererelativelyminor.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014

Rio Metro Operations: The budget was adjusted upward to reflect RioMetro’s increase in expected costs. The increase is due to Rio Metro’sexpandedoperationsandthefillingofvacantpostions.

UPWP‐FHWA:ThebudgetvarianceisduetoMRCOGbudgetingtheprogramover2years.PriortoFY14,thefundswereauthorizedonastatefiscalyearbasisratherthanafederalfiscalyearbasis,causingamountsauthorizedfromthefederalgovernmenttooverlapMRCOGfiscalyears.

FundBalanceTheMRCOG’sgovernmentalfundsreportedcombinedfundbalancesof$1,595,562.This is $284,713 higher than the previous year. The change is attributed toproceedsonthebuildingrenovationloanfromBernalilloCountythathadnotbeenexpendedbyyear‐end,andthe increase inrevenues inthegeneral fundrelatedtotheindirectcostratemethodology,asdiscussedabove.MRCOG’sbudgetisdesignedto fully utilize resources in providing services to its members and theircommunities, while maintaining a prudent reserve for unexpected downturns.MRCOG’s Board has committed $500,000 of the $1.5 million fund balance as areserveforunexpecteddownturnsandclaims.CapitalAssetsThe MRCOG’s investment in capital assets as of June 30, 2014 amounted to$3,925,669. The capital assets consistmainly of office equipment, vehicles, and abuilding. Depreciation expense of $248,204 was recorded in the current year.Additions of $551,275 were purchased during the year ended June 30, 2014,consistingofFurnitureandFixturesinadditiontoreplacingtheHVACsystem.Long‐TermDebtLong‐termdebtconsistsof thecapital leaseof theMRCOGbuildingat809CopperAve NW. MRCOG leases the building from Bernalillo County. During the year,MRCOGamendedand restated its capital lease agreement. The restructured loanincludes the balance on the capital lease of $1,612,644 plus $750,000 that theCounty loaned MRCOG for building renovations and replacement of the HVACsystem. Thenet increasetodebt is$511,933fromFY13toFY14. Asof June30,2014,theMRCOGhadtotallong‐termdebtintheamountof$2,285,822.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOMANAGEMENT’SDISCUSSIONANDANALYSIS(CONTINUED)YearEndedJune30,2014EconomicFactorsandNextYear’sBudgetsAsStateandFederalresourcescontinuetobesqueezed,theMRCOG’sbudgetforthenextyear isalsobeingchallenged. Programs,suchasTANF,havebeencutbytheState, and the MRCOG has seen some reductions in its transportation planningfunding.The2014budgethasbeenreducedbynearlyhalfamillionfromthe2014budget.Thisismainlyduetomulti‐yearprojectsthatweresubstantiallycompletedin2013.The MRCOG continues its metropolitan transportation planning, regionaltransportation planning, and local government planning programs throughagreementswithothergovernmentalagencies, including theStateofNewMexico.MRCOG is providing administrative and operational support for the NewMexicoDepartmentofTransportation(NMDOT)andtheRioMetroRegionalTransitDistrictforoperationofthecommuterrailservice.TheNMDOT’sIntelligentTransportationCenter(ITC)islocatedinthelowerleveloftheMRCOGbuilding.TheITCmonitorstraffic flow on Albuquerque’s interstate system via video surveillance and trafficmonitoring devices. The MRCOG’s membership remains constant and is alwaysseekingfurtherwaystohelpitsmembergovernmentsplanforthefuture.RequestforInformationThis financial report is designed to provide a general overview of the MRCOG’sfinances. Questions concerning any of the information provided in this report orrequest for additional financial information should be addressed to ExecutiveDirector,809CopperAvenueNW,Albuquerque,NM87102.

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICO(GOVERNMENT‐WIDE)STATEMENTOFNETPOSITIONJune30,2014

GovernmentalActivities

ASSETSCurrentCashandcashequivalents $ 3,110,063Otherreceivables 901,283Grantsreceivable 649,656Relatedentityreceivables 613,453Prepaidexpenses 19,628

Totalcurrentassets 5,294,083

NoncurrentCapitalassets,notbeingdepreciated 683,800Capitalassets,netofaccumulateddepreciation 3,241,869Totalnoncurrentassets 3,925,669

Totalassets $ 9,219,752

LIABILITIESANDNETPOSITIONLIABILITIESCurrentAccountspayableandaccruedliabilities $ 2,549,052Unearnedrevenue 845,086Accruedcompensatedabsences 304,383Currentportionofcapitalleasepayable 132,373

Totalcurrentliabilities 3,830,894

NoncurrentAccruedcompensatedabsences 73,853Capitalleasepayable 2,153,449Totalnoncurrentliabilities 2,227,302

Totalliabilities 6,058,196

NETPOSITIONNetInvestmentincapitalassets 1,639,847Unrestricted 1,521,709

Totalnetposition 3,161,556

Totalliabilitiesandnetposition $ 9,219,752

SeeNotestoFinancialStatements.

19

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICO(GOVERNMENT‐WIDE)STATEMENTOFACTIVITIESYearEndedJune30,2014

Net(Expense)Program RevenueandOperating ChangesinGrants NetPositionfor

Charges and GovernmentalExpenses forServices Contributions Activities

Functions/ProgramsGovernmentalActivitiesGeneralgovernmentGeneralactivities $ 827,591 556,996 273,649 3,054ReimbursementofRioMetrocosts 5,467,985 5,467,985 ‐ ‐Transportationplanning 3,497,163 ‐ 3,574,341 77,178Economicdevelopment 177,018 ‐ 177,018 ‐Employmentservices 721,081 ‐ 732,106 11,026Otherplanningprograms 554,326 ‐ 554,326 ‐

Totalgovernmentalactivities 11,245,163 6,024,981 5,311,440 91,258

GeneralRevenuesInterest $ 1,272

Changeinnetposition 92,530

Netposition,beginningofyear 3,069,026

Netposition,endofyear $ 3,161,556


20

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOBALANCESHEET‐GOVERNMENTALFUNDSJune30,2014

OtherNon‐major Total

General RioMetro UPWP Governmental Governmental#10 Operations #52 Funds Funds

ASSETSCashandequivalents $ 3,110,063 ‐ ‐ ‐ 3,110,063Otherreceivables 60,585 8,074 228,089 604,535 901,283Grantreimbursementsreceivable ‐ 96,089 377,624 175,943 649,656Interfundreceivables 1,246,632 16,253 ‐ 251,394 1,514,279Relatedentityreceivables ‐ 486,766 ‐ 126,687 613,453Prepaidexpenses 19,628 ‐ ‐ ‐ 19,628

Totalassets $ 4,436,908 607,182 605,713 1,158,559 6,808,362

LIABILITIESAccountspayable $ 1,418,094 ‐ 111 11,632 1,429,837Accruedpayrollliabilities 872,724 154,772 46,828 349,274 1,423,598Interfundpayables ‐ 452,410 558,774 503,280 1,514,464Unearnedgrantadvances 550,528 ‐ ‐ 294,558 845,086

Totalliabilities 2,841,346 607,182 605,713 1,158,744 5,212,985

FUNDBALANCESCommitted 500,000 ‐ ‐ ‐ 500,000Unassigned 1,095,562 ‐ ‐ ‐ 1,095,562

Totalfundbalance 1,595,562 ‐ ‐ ‐ 1,595,562

Totalliabilitiesandfundbalances $ 4,436,908 607,182 605,713 1,158,744 6,808,547

ReconciliationTotalfundbalance‐governmentalfunds 1,595,562

Amountsreportedforgovernmentalactivitiesinthestatementofnetpositionaredifferentbecause:

Capitalassetsusedingovernmentalactivitiesarenotfinancialresourcesand,therefore,arenotreported $ 3,925,669

Capitalleasepayable,longtermdebt (2,285,822)Compensatedabsences,long‐termliabilities (73,853)

Netpositionofgovernmentalactivities $ 3,161,556


SpecialRevenueMajorFunds

21

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSTATEMENTOFREVENUES,EXPENDITURESANDCHANGESINFUNDBALANCES‐GOVERNMENTALFUNDSYearEndedJune30,2014

OtherNon‐major Total

General RioMetro UPWP Governmental Governmental#10 Operations #52 Funds Funds

REVENUESIntergovernmentalFederalgrantsandcontracts $ 31,325 ‐ 1,006,269 3,014,318 4,051,912StateofNewMexicogrants ‐ ‐ ‐ 95,743 95,743Chargesforservices 84,462 ‐ ‐ ‐ 84,462Local 472,534 ‐ ‐ 274,571 747,105ReimbursementofRioMetrocosts ‐ 5,467,985 ‐ ‐ 5,467,985Miscellaneous 242,324 ‐ ‐ ‐ 242,324Interest 1,272 ‐ ‐ 1,272

Totalrevenues 831,917 5,467,985 1,006,269 3,384,632 10,690,803

EXPENDITURESCurrentOperating 14,503 ‐ 1,087,091 3,269,769 4,371,363Contractual 17,250 ‐ 70,574 535,214 623,038ExpendituresreimbursedbyRioMetro ‐ 5,457,793 ‐ ‐ 5,457,793

Capitaloutlay 465,940 10,192 20,084 55,059 551,275Debtservice:Principalandinterest 152,621 ‐ ‐ ‐ 152,621

Totalexpenditures 650,314 5,467,985 1,177,749 3,860,042 11,156,090

Excessofexpendituresoverrevenues 181,603 ‐ (171,480) (475,410) (465,287)

OTHERFINANCINGSOURCES/USESOtherfinancingsource 750,000 ‐ ‐ ‐ 750,000Operatingtransfers(out)in (646,890) ‐ 171,480 475,410 ‐

Netchangeinfundbalance 284,713 ‐ ‐ ‐ 284,713

Fundbalance,beginningofyear 1,310,849 ‐ ‐ ‐ 1,310,849

Fundbalance,endofyear $ 1,595,562 ‐ ‐ ‐ 1,595,562

Reconciliation:Changeinfundbalance‐totalgovernmentfunds 284,713

Amountsreportedforgovernmentalactivitiesinthestatementsofactivitiesaredifferentbecause:

Principalportionofcapitalleasepayable 238,067Additiontocapitallease (750,000)Depreciationisnotrecordedasafinancialuse (248,204)Capitalassetsadditionsusedingovernmentalactivitiesarenotfinancialresourcesand,therefore,arenotreported 551,275

Lossondisposalofcapitalasset (4,795)Changeinaccruedvacationliabilityandincreaseinsickaccrued 21,474

ChangeinNetPositionofGovernmentalActivities $ 92,530

SpecialRevenueMajorFunds

22

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSCHEDULEOFREVENUESANDEXPENDITURES‐BUDGETANDACTUALGENERALFUNDYearEndedJune30,2014

Current VarianceOriginal Final Year FavorableBudget Budget Actual (Unfavorable)

REVENUESIntergovernmentalFederal $ ‐ 32,000 31,325 (675)State ‐ ‐ ‐ ‐Chargesforservices ‐ ‐ 84,462 84,462Local 472,534 472,534 472,534 ‐Interestandother 35,000 35,000 90,975 55,975

Totalrevenues 507,534 539,534 679,296 139,762

EXPENDITURESCurrent:Operating ‐ 20,000 14,503 5,497Contractual ‐ 18,000 17,250 750Capitaloutlay ‐ 470,000 465,940 4,060Debtservice ‐ ‐ ‐ ‐

Totalexpenditures ‐ 508,000 497,693 10,307

Otherfinancinguses ‐ 750,000 750,000 ‐Operatingtransferout 472,534 646,890 646,890 ‐

Changeinfundbalance $ 35,000 134,644 284,713 150,069


23

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSCHEDULEOFREVENUESANDEXPENDITURES‐BUDGETANDACTUALMAJORFUND‐RIOMETROOPERATIONSYearEndedJune30,2014


REVENUESIntergovernmentalFederal $ ‐ ‐ ‐ ‐State ‐ ‐ ‐ ‐Local ‐ ‐ ‐ ‐ReimbursementofRioMetroCosts 5,517,551 5,617,551 5,467,985 (149,566)Miscellaneous ‐ ‐ ‐ ‐

Totalrevenues 5,517,551 5,617,551 5,467,985 (149,566)

EXPENDITURESCurrent:Operating ‐ ‐ ‐ ‐IncurredonbehalfofRioMetro 5,517,551 5,617,551 5,467,985 149,566Capitaloutlay ‐ ‐ - ‐Debtservice ‐ ‐ ‐ ‐

Totalexpenditures 5,517,551 5,617,551 5,467,985 149,566

Otherfinancinguses ‐ ‐ ‐ ‐Operatingtransferout ‐ ‐ ‐ ‐

Changeinfundbalance $ ‐ ‐ ‐ ‐


24

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSCHEDULEOFREVENUESANDEXPENDITURES‐BUDGETANDACTUALMAJORFUND‐UNIFIEDPLANNINGWORKPROGRAM‐FHWA#52YearEndedJune30,2014


REVENUESIntergovernmentalFederal $ 1,643,211 1,643,211 1,006,269 (636,942)State ‐ ‐ ‐ ‐Chargesforservices ‐ ‐ ‐ ‐Local ‐ ‐ ‐ ‐ReimbursementofRioMetroCosts ‐ ‐ ‐ ‐Interestandother ‐ ‐ ‐ ‐

Totalrevenues 1,643,211 1,643,211 1,006,269 (636,942)

EXPENDITURESCurrent:Operating 1,923,234 1,923,234 1,177,749 745,485IncurredonbehalfofRioMetro ‐ ‐ ‐ ‐Contractual ‐ ‐ ‐ ‐Capitaloutlay ‐ ‐ ‐ ‐

Totalexpenditures 1,923,234 1,923,234 1,177,749 745,485

OtherfinancingusesOperatingtransferin 280,023 280,023 171,480 108,543

Changeinfundbalance $ ‐ ‐ ‐ ‐


25

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICONOTESTOFINANCIALSTATEMENTSJune30,2014

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NOTE1. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESDescription of Entity. The Mid‐Region Council of Governments of New Mexico(MRCOG)isanassociationoflocalgovernmentswithintheState’sPlanningDistrictNumber3.TheCouncilwasestablishedonDecember11,1969,undertheauthorityof the Regional Planning Act and under the Joint Powers Act. Membership isavailable to all governmental units within District 3, which is composed of fourcounties:Bernalillo,Sandoval,TorranceandValencia.Mid‐RegionCouncilofGovernmentsofNewMexico’sformernamewastheMiddleRio Grande Council of Governments of New Mexico, and the name change waseffectiveJune13,2002.TheMRCOGprovidesavarietyofservicestoitsmembergovernmentsandisfundedthroughacombinationofparticipationfees,federal,state,andothergrants.Servicesprovided include planning and other technical assistance in the fields oftransportation, economic development, ordinances, zoning, and other specialprojectsasrequested.The accountingpolicies of theMRCOG conform to accountingprinciples generallyaccepted in theUnitedStatesofAmericaasapplicable togovernmentalunits.Thefollowingisasummaryofthemoresignificantpolicies:ReportingEntity. Certain GASB statements establish criteria for determining thegovernmentalreportingentityandcomponentunitsthatshouldbeincludedwithinthereportingentity.TheMRCOGistheprimarygovernmentandisnotacomponentunitofanyotherentity. It is thefinancialreportingentity,anditdidnothaveanycomponentunitsduringthefiscalyearendedJune30,2014.BasicFinancialStatements.Thebasicfinancialstatementsincludebothgovernment‐wide(basedonMRCOGasawhole)andfundfinancialstatements.Thefocus isoneithertheMRCOGasawholeormajorindividualfunds(fundfinancialstatements).Both the government‐wide and fund financial statements categorize primaryactivities as either governmental or business type. In the government‐wideStatement of Net Position, both the governmental and business‐type activitiescolumnsarepresentedonaconsolidatedbasisbycolumn,andarereflectedonaneconomicresourcesmeasurementfocusandtheaccrualbasisofaccounting,whichincorporates long‐term assets and receivables as well as long‐term debt andobligations.TheMRCOGdidnothaveanybusiness‐type activitiesduring theyearendedJune30,2013.


27

NOTE1. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)The government‐wide Statement of Activities reflects both the gross and net costper functional category, which are otherwise being supported by generalgovernment revenues. The Statement of Activities reduces gross expenses byrelated program revenues, charges for services, operating and capital grants. TheMRCOG reports several functions as reflected in the Statement of Activities. Theprogramrevenuesconsistofgrantsreceivedforspecificprojects.Thenetcost isnormallycoveredbygeneralrevenues.TheMRCOGdoescurrentlyemployindirectcostallocationsystemswhicharechargedtodirectexpensesintheStatementofActivities.Thisgovernment‐widefocusismoreonthesustainabilityoftheMRCOGasanentityandinaggregatefinancialpositionresultingfromtheactivitiesofthecurrentfiscalperiod.Thegovernment‐widefinancialstatementsarepreparedinaccordancewithgenerallyacceptedaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(GAAP).Interfundactivityiseliminatedinthegovernment‐widefinancialstatements.Therewasnointernalservicefundactivitywhichneededtobeeliminatedfortheyearof2014.Basis ofPresentation–FundFinancials: The fund financial statements presented,emphasisisonthemajorfundsinthegovernmentalcategoryonlysincetherearenobusiness‐type funds. Non‐major funds are summarized into a single column. Thegovernmental fund statements are presented on a current financial resourcesmeasurement focusandmodifiedaccrualbasisof accounting.Thispresentation isdeemed appropriate to (a) demonstrate legal compliance, (b) demonstrate thesource and use of liquid resources, and (c) demonstrate how theMRCOG’s actualexperience conforms to the budget of fiscal plan. Since the governmental fundstatementsarepresentedonadifferentmeasurementfocusandbasisofaccountingthan the government‐wide statements’ governmental activities column, areconciliationispresentedonthepageofeachstatement,whichbrieflyexplainstheadjustments necessary to transform the fund based financial statements into thegovernmentalactivitiescolumnonthegovernmental‐widepresentation.


28

NOTE1. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)Thestatementofactivitiesdemonstratesthedegreetowhichthedirectexpensesofagivenfunctionareoffsetbyprogramrevenues.Directexpensesarethosethatareclearly identifiable with specific function. Program revenues derive directly fromtheprogram itself or frompartiesoutside the reportinggovernments citizenryorfundingsourcesasawholeinclude1)chargesforservicesfromMRCOG’scontractswith others 2) grants that are restricted to meeting the operations or capitalrequirementsofaparticularfunctionsuchasadministrationandplanningfunctionsforWIA,UPWP,Commuterrailprojectsandothersmallerprograms.The financial transactionsof theMRCOGare recorded in individual funds, eachofwhich is considered a separate accounting entity. The various fund types arereportedinthefundfinancialstatements,asfollows:GovernmentalFundTypes‐GovernmentalfundsareusedtoaccountfortheMRCOG’sexpendable financial resources and related liabilities. The measurement focus isbased upon determination of changes in financial position. The following are theMRCOG’sgovernmentalfundtypes:

GeneralFund‐TheGeneralFundisthegeneraloperatingfundoftheMRCOG.Itisusedtoaccountforallfinancialresourcesexceptthoserequiredtobeaccountedforinanotherfund.SpecialRevenueFunds‐TheSpecialRevenueFunds areused to account for theproceedsofspecificrevenuesourcesthatare legallyrestrictedtoexpendituresforspecifiedpurposes.Capital Projects Funds‐ The Capital Projects Funds are used to account forfinancial resources to be used for the acquisition or construction of capitalfacilities.

UndertherequirementsofGASB#34,theMRCOGisrequiredtopresentcertainofitsgovernmentalfundsasmajorfundsbaseduponcertaincriteria.Themajorfundspresentedinthefundfinancialstatementsincludethefollowing:GeneralFund–TheprimaryoperatingfundoftheMRCOGaccountsforallfinancialresources,exceptthoserequiredtobeaccountedforinotherfunds.


29

NOTE1. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)MajorFunds:

RioMetro–(ProgramNo.49,89,411,425,430,435 ,439,440,441,445,451,454,467)–AspecialrevenuefundthatwascreatedbyaprofessionalservicesagreementwithRioMetro.It includesthepersonnelcostsoftheoperationandadministration and other various costs of operating and administering RioMetro’stransit,railandplanningactivities.Metropolitan Transportation Planning Organization (MPO) – Federal HighwayAdministration(FHWA)(No.52)–Providesfortheconductofthecooperative,coordinated,comprehensive(3c)transportationsystemplanningprocessintheAlbuquerqueMetropolitan Planning Area, with emphasis on improving safety,reducing traffic congestion, improving efficiency in freight movement, andincreasingintermodalconnectivity.ServiceandproductsincludemaintenanceoftheMetropolitan Planning Organization (MPO) process, coordination of urbantransportation planning activities, and provision of traffic data and forecasts,basesocio‐economicdataandforecasts,specialstudies,andtechnicalassistanceto the member local governments. These funds are authorized by the U.S.Department of Transportation, Public Law 109‐59 Safe, Accountable, Flexible,andEfficientTransportationEquityAct:ALegacyforUsers(SAFETEA‐LU).

BasisofAccounting.Basis of accounting refers to the point at which revenues orexpenditures/expensesarerecognizedintheaccountsandreportedinthefinancialstatements. It relates to the timing of themeasurementsmade, regardless of themeasurementfocusapplied.The Government‐wide Financial Statements are presented using the economicresources measurement focus and the accrual basis of accounting. TheGovernmental Funds in the Fund Financial Statements are presented using thecurrent financial resourcesmeasurement focus and themodified accrual basis ofaccounting.Under the modified accrual basis of accounting, revenues are recorded whensusceptible to accrual; i.e., both measurable and available. “Available” meanscollectiblewithin the current period or soon enough thereafter tobe used to payliabilities of the current period (generally, sixty days). Expenditures are generallyrecognizedunderthemodifiedaccrualbasisofaccountingwhentherelatedliabilityisincurred.


30

NOTE1. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)In applying the “susceptible to accrual” concept to intergovernmental revenuespursuant to GASB Statement #33, which was adopted as of July 1, 2003 by theMRCOG, the provider should recognize liabilities and expenses and the recipientshould recognize receivables and revenues when the applicable eligibilityrequirements including time requirements, aremet.Resources transmittedbeforetheeligibilityrequirementsaremet,undermostcircumstances,shouldbereportedasadvancesbytheprovideranddeferredrevenuebytherecipient.Grantrevenuesarenotrecognizeduntileligibilityrequirementsaremet.CapitalAssets.Capital assets acquired are recorded as expenditures in the fundswhichfinancetheacquisitionsandarecapitalizedatcostanddepreciatedovertheirestimatedusefullives(nosalvagevalue).Contributedcapitalassetsarerecordedattheirestimatedfairmarketvalueatthetimereceived.Additions,includingsoftware,improvementsandothercapitaloutlaysthatsignificantlyextendtheusefullifeofanassetarecapitalizedandinterestisnotcapitalizedinregardstotheMRCOG’scapitalassets. MRCOG’s capitalization policy, i.e., the dollar value above which assetacquisitions are added to the capital assets, is $5,000 per Section 12‐6‐10 NMSA1978.Othercostsincurredforrepairsandmaintenanceareexpensedasincurred.Estimatedusefullifeismanagement’sestimateofhowlongtheassetisexpectedtomeet service demands. Straight line depreciation is used based on the followingestimatedusefullives:

Furniture,machinery,andequipment 3‐10yearsBuildingandimprovement 40years

MRCOGdidnotownanyinfrastructureassetsasofJune30,2014.Encumbrances.MRCOGdoesnotuseencumbrances.


31

NOTE1. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)BudgetsandBudgetaryAccounting.The MRCOG’s Executive Director prepares anoverallbudgetbyprojectfundfortheMRCOGwhichisadoptedbytheBoard.ThisBudget includes expected receipts and expenditures of the General Fund. TheMRCOGisrequiredtopreparebudgetsforeachprogramforsubmissiondirectlytothatprogram’sfundingsource.Eachfunding’ssourcehasitsownrequirementsastothetimingofbudgetpreparationandinterimreports,lineitemsandcategoriestobeused and amounts to be included. Some require a report of grantor expendituresonly,whileothersrequireareportoftotalprogramexpenditures.Thebudgets,usedby the MRCOG to monitor each program, are also used for comparisons in theaccompanyingfinancialstatements.Therefore,MRCOGapprovesitsbudgetbytotalexpendituresbyfund.Formalbudgetary integration isemployedasamanagementcontroldeviceduringthe year. Budgets are adopted on a basis consistent with accounting principlesgenerally accepted in the United States of America. There are no differencesbetweentheGAAPbasisandthebudgetarybasisbecausebotharemodifiedaccrual.Thetimeatwhichappropriationslapsedependsonthefundingsourceandrelatedlegalrequirements.Unexpendedappropriationsfundedbyallgrantsdonotlapseatthefiscalyear‐endandmaybecarriedforward.The level of classification detail at which expenditures may not legally exceedappropriations varies depending on the funding source. The legally permissiblemethodsforamendingtheinitiallyapprovedbudgetvarydependingonthefundingsource.Applicationsforadditional fundsmustbesubmittedtothefundingsource.Thepresentedbudgetaryinformationhasbeenproperlyamendedduringtheyear.Forbudgetarypurposes,thegeneralfundtreatsprincipalandinterestpaymentsonits debt as an operating cost. These expenditures are then transferred out andallocatedouttocertainotherfunds.DueToandFromOtherFunds.Interfundreceivablesrepresentprojectcostspaidbythe General Fund in anticipation of reimbursements from grants in the SpecialRevenueFunds.Whenthereimbursementsfromgrantsarereceived,theInterfundreceivables are repaid. Interfund activities are eliminated in determininggovernment‐widefinancialstatements.Grants and Receivables. Grant reimbursements receivable represent qualifiedexpendituresmadeundergrantagreementsforwhichreimbursementsareduebutnot yet received.Anallowance fordoubtful accounts is notprovided for, since allreceivablesarefromthefederal,state,orlocalgovernmentsandaredeemedtobefullycollectible.Allotherreceivablesareexpectedtobecollectedand,therefore,noallowancehasbeensetup.


32

NOTE1. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)Revenues.Revenuesarerecognizedasfollows:

1) Special and capital outlay appropriations require project and draw downapproval fromNMDepartmentofFinanceandAdministration(DFA)Boardof Finance. MRCOG considers this part of the eligibility requirements anddoes not recognize the revenues and receivables until the approval isobtained.

2) Federal and other grants revenues are recognized when the applicable

eligibility criteria, including time requirements, aremet and the resourcesareavailable.Resourcesreceivedforwhichapplicableeligibilitycriteriahavenot been met are reflected as deferred revenues in the accompanyingfinancialstatements.

3) Revenuesfromgrantsthatarerestrictedforspecificusesarerecognizedas

revenues and as receivables when the related costs are incurred.Contributions and othermonies held by other state and local agencies arerecorded, as a receivable at the time the money is made available to thespecificfund.Allotherrevenuesarerecognizedwhentheyarereceivedandarenotsusceptibletoaccrual.

Expenditures are recorded as liabilities when incurred. Expenditures charged tofederalprogramsarerecordedutilizingthecostprinciplesdescribedbythevariousfundingsources.UnearnedGrantAdvances.Unearnedgrantadvancesrepresentcashreceivedunderagreementswhichhavenotyetbeenexpendedfortheirintendedpurposesandare,therefore,unearned.Reimbursement of Rio Metro Costs and Incurred on behalf of Rio Metro.Reimbursement of Rio Metro Costs represents cash received from Rio MetroRegionalTransitDistrict(RioMetro)forexpensesthatwereincurredbyRioMetroandpaidbytheMRCOG.TheMRCOGtheninvoicesRioMetrofortheseexpenditures.SeeNote7fordetailoftheserevenuesandexpenditures.


33

NOTE1. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)NetPosition.NetpositionontheStatementofNetPositionincludethefollowing:

NetInvestmentinCapitalAssets–thecomponentofnetpositionthatreportsthedifferencebetweencapitalassetslessboththeaccumulateddepreciationandtheoutstanding balance of debt, excluding unspent proceeds, that is directlyattributable to the acquisition, construction or improvement of these capitalassets.Restricted– thecomponentofnetposition thatreports thedifferencebetweenassetsandliabilitiesoftheMRCOGthatconsistsofassetswithconstraintsplacedon their use that are legally enforceable by legislation and the like to be usedonly for the purposes specified. MRCOG had no restricted net position as ofJune 30,2014.Unrestricted – the difference between the assets and liabilities that is notreportedinnetpositioninvestedincapitalassetsorrestrictednetposition.

Fund Balance. In the fund level financial statements, fund balance reservesrepresent those portions of fund equity not available for appropriation orexpenditure or legally segregated for a specific future use. MRCOG classifiesgovernmentalfundbalancesasfollows:

Non‐spendable–includesfundbalanceamountsthatcannotbespenteitherbecause it is not in spendable form or because of legal or contractualconstraints.

Restricted–includesfundbalanceamountsthatareconstrainedforspecificpurposes which are externally imposed by providers, such as grantors oramountsconstrainedduetoenablinglegislation.

Committed–includesfundbalanceamountsthatareconstrainedforspecificpurposes that are internally imposed by the government through formalactionof thehighest levelofdecisionmakingauthority (MRCOG’sBoardofDirectors)anddoesnot lapseatyear‐end.TheMRCOG’sBoardofDirectorscommittedfundbalanceof$500,000tobemaintainedfor theprotectiontothe local member governments, including potential claims against theMRCOGduetofinancialreductions.

Assigned– includes fundbalanceamounts thatare intended tobeused forspecificpurposesthatareneitherconsideredrestrictedorcommitted.FundBalancemaybeassignedbythemanagement.

Unassigned–includespositivefundbalancewithintheGeneralFundwhichhasnotbeenclassifiedwithintheabovementionedcategoriesandnegativefundbalancesinothergovernmentalfunds.


34

NOTE1. SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)MRCOG requires restricted amounts to be spent first when both restricted andunrestricted fund balance is available unless there are legal documents/contractsthatprohibitdoingthis,suchasagrantagreementrequiringmatchingspending.Use of Estimates. The preparation of financial statements in conformity withaccountingprinciples generally accepted in theUnited States of America requiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateof the financial statements and the reported amounts of revenues and expensesduringthereportingperiod.Actualresultscoulddifferfromthoseestimates.NOTE2. DEPOSITANDINVESTMENTACCOUNTSMRCOG invests its funds in accordance with state statutes which require thatfinancial institutions pledge collateral of federal or state securitieswhosemarketvalue is equal to at least 50 percent of the deposits in excess of FDIC insurancecoveragemadebyMRCOGwitha financial institution.Also,MRCOG inaccordancewith state statutes may only have deposits in financial institutions, or invest infederal direct obligations or the NewMexico State Treasurer’s Local GovernmentPooledInvestments.

SecuritieswhichareobligationsoftheStateofNewMexico,itsagencies,institutions,countiesormunicipalitiesorothersubdivisionsareacceptedatparvalue;allothersecurities are accepted atmarket value.No security is required for thedeposit ofpublic money that is insured by the Federal Deposit Insurance Corporation, theFederal Savings and Loan Insurance Corporation, or the National Credit UnionAdministration.

Custodial credit risk is the risk that in the event of a bank failure, the MRCOG’sdepositsmaynotbe returned to it.TheMRCOG’sdepositpolicy is to collateralizeone half of the uninsured publicmoney in each account. As of June 30, 2014, theamountoftheMRCOG’sbankbalanceof$2,179,221wasexposedtocustodialcreditriskasfollows:

Uninsuredanduncollateralized $ (2,668,629)Uninsuredandcollateralheldbypledgingbank’strust DepartmentnotinMRCOG’sname 3,508,239


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NOTE2. DEPOSITANDINVESTMENTACCOUNTS(CONTINUED)FollowingarethedescriptionsofthecashandrepurchaseagreementsasofJune 30,2014: BookBalance BankBalance Repurchaseagreementsweepaccount $ 186,575 186,575 Demanddeposit 2,244,267 1,500,000 Businesssavingsaccount 679,221 679,221 Total $ 3,110,063 2,365,796 Outstandingchecks (34,273) Depositsintransit 778,511 OtherAdjustments 29 Cashandequivalents perfinancialstatements $ 3,110,063NOTE3. INTERFUNDRECEIVABLES/PAYABLESInterfundaccountswereasfollowsatJune30,2014: To FromDuetogeneralfundfrommajorandnonmajorfunds $ 1,246,632 ‐

DuetoRioMetrooperations 16,253 ‐

DuefromRioMetrooperations ‐ 452,410

DuefromUPWP‐FTA#52togeneralfund ‐ 558,774

Duetononmajorfundsfromgeneralfund 251,394 ‐

Duefromnonmajorfundstogeneralfund ‐ 503,095 Total $ 1,514,279 1,514,279Interfund accounts occur because expenditures are paid for by the General fundbecausetheSpecialRevenueFundsareonareimbursementbasis.WhentheSpecialRevenueFundsreceivethereimbursementsfromthegrantors,theGeneralfundisrepaid.ManagementexpectsallofInterfundbalancesatJune30,2014toberepaidwithinoneyear.Matching funds transfers aremade by the General Fund as required tomeet thematchingrequirementsofgrants.


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NOTE4. CAPITALASSETSAsummaryofchangesincapitalassetsfollowsatJune30: June30, Adjustments/June30, 2013 Additions Deletions Transfers 2014 Nondepreciable Land $ 683,800 ‐ ‐ ‐ 683,800 Depreciable Buildingand improvements 2,792,822 396,618 ‐ ‐ 3,189,440 Furniture,fixtures andmachinery 1,411,515 154,657 (66,489) ‐ 1,499,683 Totalassets 4,888,137 551,275 (66,489) ‐ 5,372,923 Accumulateddepreciation Building (531,460) (69,821) ‐ ‐ (601,281) Furniture,fixtures, andmachinery (729,284) (178,383) 61,694 ‐ (845,973) Totalaccumulated depreciation (1,260,744) (248,204) 61,694 ‐ (1,447,254) Netcapital assets $3,627,393 303,071 (4,795) ‐ 3,925,669Furniture,equipmentandmachineryhavebeenprovidedfromgrantsaccountedforinSpecialRevenueFundsintheamountof$1,499,683,includingonhandatJune30,2014,$79,786insurplus(idle)equipmentthatisfullydepreciatedandincludedinthecapitalassets.Depreciation expense for the year ended June 30, 2014 was $248,204. It waschargedtothegeneralactivitiesfunctionintheStatementofActivities.NOTE5. ACCRUEDVACATIONANDSICKLEAVETheamountofannualvacationleavethatemployeesoftheMRCOGearndependsontheir length of servicewith theMRCOG. The total number of hourswhich can beearned ranges from a minimum of 100 hours per year to a maximum of 192.14hours per year. Any vacation leave in excess of a 24month total which remainsunusedattheendofeachcalendaryearisforfeited.


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NOTE5. ACCRUEDVACATIONANDSICKLEAVE(CONTINUED)A total of 96 sick leave hours per year may be accumulated by each full‐timeemployee. Part‐time employees accrue sick leave on a prorated basis. Employeeswith less than 500 hours of accumulated sick leave lose those hours upontermination of employment, except those who terminate due to retirement.Employeeswhohaveaccumulatedmorethe500hoursofsickleavemaychoosetoconvertsickleavetoeithervacationleaveorcashattheendofeachcalendaryear,or upon resignation, basedon the following conversion schedule:Over500hoursmay be converted at 3 hours of sick leave to 1 hour of vacation leave; over 850hoursmaybeconvertedat2hoursofsickleaveto1hourofvacationleave;hoursinexcessof1,200willbeconvertedat3hoursofsickto2hoursofvacation.Employeesmaynotcarryovermorethan1200hoursofsickleave.Uponretirement,employeesmaycashoutallsickleavehoursaccrued.

The MRCOG accrues a liability for vacation and sick leave when the followingcriteriaaremet:

1. The MRCOG’s obligation relating to employee’s rights to receivecompensation for future absences is attributable to employee’s servicesalreadyrendered.

2. Theobligationrelatedtorightsthatvestofaccumulatedleave.3. Paymentofthecompensationisprobable.4. Theamountcanbereasonablyestimated.

Aliabilityfortheseamountsisreportedinthegovernmentalfundsonlyiftheyhavematured,forexample,asaresultofemployeeresignationsorretirements,oriftheamountshavebeenfundedthroughreimbursementsfromprogramsandgrants.In accordance with the above criteria, the MRCOG has accrued a liability usingpayrollratesineffectatJune30,2014,forvacationandsickleavewhichhasbeenearnedbutnottakenbytheMRCOGemployees.AccruedvacationandsickleaveischargedtograntprogramsinaccordancewithOMBCircularA‐87.The accumulated leave for the year ended June 30, 2014, has been recorded as aliability intheGovernment‐WideStatementofNetPositionascurrentportiondue$304,383and long‐termportiondue$73,853.Typically,General fundsareusedtoliquidatethis liability,whichtotaled$73,853at June30,2014.Fundsaccumulatedfrom grantor reimbursements are used to liquidate the funded portion


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NOTE5. ACCRUEDVACATIONANDSICKLEAVE(CONTINUED)oftheliabilities,whichtotal$304,383atJune30,2014.Detailofaccumulatedleavefortheyearisasfollows:

Beginning Ending DueWithin Balance Additions Deletions Balance OneYear $ 374,156 297,551 (293,471) 378,236 304,383NOTE6. CHANGESINLONG‐TERMDEBTOnDecember12,2013,MRCOGamendedandrestated its capital leaseagreementwith Bernalillo County. The new agreement refinances the principal balance of$2,362,644overseventeen(17)yearsat .65%interestrate. Theprincipalbalanceincludesanadditional$750,000forrenovationstothebuilding. Annualpaymentsareapproximately$147,000undertherestatedleaseagreement.MRCOGestimatessavingsofabout$700,000ininterestexpenseunderthenewagreement.A summary of long‐term debt and changes in long‐term debt for the year endedJune 30,2014isasfollows:Buildingandlandlocatedat809CopperAvenueN.W.Lessor‐BernalilloCountyTerm‐25yearsbeginningAugust2005ScheduleofCapitalLeasePayable:YearEndedJune30: Principal Interest 2015 $ 132,373 14,464 2016 133,235 13,601 2017 134,104 12,732 2018 134,978 11,858 2019‐2031 1,751,132 72,091 Total 2,285,822 124,746 Lesscurrentportion (132,373)

Long‐termportionofdebt $ 2,153,449


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NOTE6. CHANGESINLONG‐TERMDEBT(CONTINUED) Amounts June30, June30, DueWithin 2013 Reductions Additions 2014 OneYear Capitallease $ 1,773,889 (238,067) 750,000 2,285,822 132,373General revenue and special revenue funds are used to pay long‐term debt asallocatedby theMRCOG’s indirectcostallocationplan.Thecapital lease ispaid toBernalilloCounty,arelatedparty.NOTE7. RIOMETROREIMBURSEMENTS/INCURREDCOSTSTheMRCOGpaysforseveralexpendituresonbehalfofRioMetro.TheMRCOGtheninvoicesRioMetrofortheseexpenditures.Thefollowingisabreakoutofwhattheseexpendituresconsistsof:ReimbursementtoMRCOG RioMetroRTDRevenue $ 5,467,985IncurredonbehalfofRioMetro OperatingExpenses 5,467,985 TotalExpenditures 5,467,985Excessrevenuesover Expenditures $ ‐


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NOTE8. PERAPENSIONPLANPlanDescription.SubstantiallyalloftheMRCOG’sfull‐timeemployeesparticipateina public employee retirement system authorized under the Public EmployeesRetirement Act (Chapter 10, Article 11, NMSA 1978). The Public EmployeesRetirement Association (PERA) is the administrator of the plan, which is a cost‐sharingmultiple‐employer defined benefit retirement plan. The plan provides forretirement benefits, disability benefits, survivor benefits and cost‐of‐livingadjustments to planmembers and beneficiaries. PERA issues a separate, publiclyavailable financial report that includes financial statements and requiredsupplementaryinformationfortheplan.ThatreportmaybeobtainedbywritingtoPERA, P.O. Box 2123, Santa Fe, NM 87504‐2123. The report is also available onPERA’swebsiteatwww.pera.state.nm.us.Funding Policy. Plan members are required to contribute 13.15% (ranges from3.83%to16.65%dependingupontheplan–i.e.,stategeneral,statehazardousduty,state police and adult correctional officers, municipal general, municipal police,municipal fire, municipal detention officer) of their gross salary. The MRCOG isrequired to contribute 9.15% of the gross covered salary. The contributionrequirements of planmembers and theMRCOG’s are established in State statuteunderChapter10,Article11,NMSA1978.The requirementsmaybe amendedbyacts of the legislature. The MRCOG’s contributions to PERA for the fiscal yearsending June 30, 2014, 2013 and 2012 were $951,266, $886,270 and $835,270,respectively,whichequal the amountof the required contributions for each fiscalyear. In June 2012, GASB Statement No. 68 ‐ Accounting and Financial Reporting forPensions, an amendment of GASB Statement No. 27, is effective for financialreporting periods beginning after June 15, 2014. The MRCOG has adopted thisstandard effective July 1, 2014. It is anticipated that a liability for pensionparticipationwillbeincludedintheFY15financialstatements. NOTE9. CITYOFALBUQUERQUESERVICESTheCityofAlbuquerqueprovidesadministrativesupporttotheMRCOGforpayroll,personnel, computer services, legal and risk management, among other things,underacontractualagreement.Administrative fees for theseservices for theyearended June30,2014were$34,279.Asof June30,2014,nothingwasowed to theCity of Albuquerque for administrative fees, payroll, payroll taxes, and PERAcontributions.


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NOTE10. INSURANCECOVERAGE

The MRCOG is subject to various risks of loss, which are covered through thepurchase of commercial insurance and participation in the City of Albuquerque’sRiskManagementPool.The following insurancecoveragewas ineffectat June30,2014:InsurerandPolicyType

Term

Coverage

NewMexicoMutual(worker’scompensation)

2/12/14–2/12/15 Injurybyaccident($1,000,000)eachaccident)Bodilyinjurybydisease($1,000,000)eachemployee)Bodilyinjurybydisease($1,000,000policylimit)

AlliantInsuranceServices,Inc. Commercialgeneralliability 9/29/13–9/29/14 $1,000,000eachoccurrence,Nogeneral

aggregatelimitAutoliability– Ownedandnon‐ownedvehiclesSpecialPropertyInsuranceProgramEmployeeDishonestyBond

9/29/13–9/29/147/1/13–7/1/147/1/13–7/1/14

Combinedsinglelimit$1,000,000Boilerandmachiningproperty$25,000,000aggregateotherlimitationapply$1,000,000faithfulperformance/employeehonesty

CityofAlbuquerqueRiskManagementFund

CoveredunderlimitsoftheTortClaimsActofNM

Autovehiclesliability– Continuouspolicy $1,000,000–propertydamageMRCOGownedBelowarenotMRCOG’sGeneralStarIndemnityCompanyExcessAutoNationalIndemnityCompanyCommercialAutomobileEssexInsuranceCompanyCommercialGeneralLiabilityEvanstonInsuranceCompanyExcessLiability

11/10/13–11/10/1411/10/13–11/10/1411/10/13–11/10/1411/10/13‐11/10/14

$1,000,000–perpersonforsingleoccurrence$4,000,000–Aggregate$1,000,000–SingleLimit$5,000–MedicalPaymentsAnyoneperson$1,000,000–UninsuredMotoristCSL$1,272,069–Collision$1,272,069–Comprehensive$2,000,000–GeneralAggregate$1,000,000‐EachOccurrence$1,000,000‐Personal&AdvertisingInjury$5,000‐MedicalPayments/Anyoneperson$100,000‐DamagetoPremises$4,000,000–AnnualAggregate$4,000,000‐EachOccurrence


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NOTE11. POST‐EMPLOYMENTBENEFITSPlanDescription.TheMRCOG contributes to the NewMexico Retiree Health CareFund,acostsharingmultiple‐employerdefinedbenefitpostemploymenthealthcareplan administeredby theNewMexicoRetireeHealthCareAuthority (RHCA). TheRHCA provides health care insurance and prescription drug benefits to retiredemployees of participating New Mexico government agencies, their spouses,dependents, and surviving spouses and dependents. The RHCA Board wasestablishedbytheRetireeHealthCareAct(Chapter10,Article7C,NMSA1978).TheBoard is responsible for establishing and amending benefit provisions of thehealthcare plan and is also authorized to designate optional and/or voluntarybenefitslikedental,vision,supplementallifeinsurance,andlong‐termcarepolicies.Eligibleretireesare:1)retireeswhomakecontributionstothefundforatleastfiveyears prior to retirement andwhose eligible employerduring that period of timemadecontributionsasaparticipantintheRHCAplanontheperson'sbehalfunlessthatperson retiresbefore the employer’sRHCAeffectivedate, inwhich the eventthetimeperiodrequiredforemployeeandemployercontributionsshallbecometheperiod of time between the employer's effective date and the date of retirement;2) retireesdefinedbytheActwhoretiredpriortoJuly1,1990;3)formerlegislatorswho served at least two years; and 4) former governing authoritymemberswhoservedatleastfouryears.The RHCA issues a publicly available stand‐alone financial report that includesfinancial statements and required supplementary information for thepostemployment healthcare plan. That report and further information can beobtained by writing to the Retiree Health Care Authority at 4308 Carlisle N.E.,Suite 104,Albuquerque,NM87107.Funding Policy. The Retiree Health Care Act (Section 10‐7C‐13 NMSA 1978)authorizes the RHCA Board to establish themonthly premium contributions thatretireesarerequiredtopayforhealthcarebenefits.Eachparticipatingretireepaysamonthly premium according to a service based subsidy rate schedule for themedicalplusbasiclifeplanplusanadditionalparticipationfeeoffivedollarsiftheeligibleparticipantretiredpriortotheemployer’sRHCAeffectivedateorisaformerlegislatororformergoverningauthoritymember.Formerlegislatorsandgoverningauthoritymembers are required to pay100%of the insurancepremium to covertheirclaimsandtheadministrativeexpensesoftheplan.Themonthlypremiumrateschedule can be obtained from the RHCA or viewed on their website atwww.nmrhca.state.nm.us.


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NOTE11. POST‐EMPLOYMENTBENEFITS(CONTINUED)The employer, employee and retiree contributions are required to be remitted tothe RHCA on a monthly basis. The statutory requirements for the employer andemployee contributions can be changed by the New Mexico State Legislature.EmployersthatchoosetobecomeparticipatingemployersafterJanuary1,1998,arerequiredtomakecontributionstotheRHCAfund intheamountdeterminedtobeappropriatebytheboard.The Retiree Health Care Act (Section 10‐7C‐15 NMSA 1978) is the statutoryauthoritythatestablishestherequiredcontributionsofparticipatingemployersandtheiremployees.Thestatuterequireseachparticipatingemployertocontribute2%of each participating employee’s annual salary; each participating employee isrequired to contribute 1%of their salary. In addition, pursuant to Section 10‐7C‐15(G)NMSA1978,atthefirstsessionoftheLegislaturefollowingJuly1,2013,thelegislature shall review and adjust the distributions pursuant to section 7‐1‐6.1NMSA1978andtheemployerandemployeecontributionstotheauthorityinordertoensuretheactuarialsoundnessofthebenefitsprovidedundertheRetireeHealthCareAct.TheMRCOG’s contributions to theRHCA for theyears ended June30,2014,2013and 2012 were $100,081, $92,985 and $80,582, respectively, which equal therequiredcontributionsforeachyear.NOTE12. CONTINGENCIESAmounts received or receivable from the grantors are subject to audit andadjustment by those grantors. Any disallowed claims, including amounts alreadycollected, may constitute a liability of the MRCOG. The amount, if any, ofexpenditureswhichmaybedisallowedbythosegrantorscannotbedeterminedatthis time, although theMRCOG’smanagement expects such amounts, if any, to beimmaterial.In thenormalcourseofbusiness,MRCOG isparty tocertainpending lawsuitsandclaims.IntheopinionofmanagementtheselawsuitsandclaimswillbecoveredbyMRCOG’s insurance.Theultimateoutcomeof these lawsuits andclaimscannotbedeterminedatthistime.


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NOTE13. OPERATIONS,MAINTENANCEANDMANAGEMENTSERVICES AGREEMENTTheMRCOGhasanoperations,maintenance,andmanagementagreementwiththeCity of Albuquerque, Rio Metro Regional Transit District (Rio Metro) and theWorkforceConnectionofCentralNewMexico (WCCNM).TheCityofAlbuquerqueprocessesandpaysallpayrollfortheMRCOG.EmployeesforRioMetroandWCCNMare employees of the MRCOG. MRCOG invoices Rio Metro and WCCNM for theirportion of salaries as well as rent and other operating expenses. The MRCOGreimbursed theCityofAlbuquerque$7,259,117 forpayroll expenses.TheMRCOGwasreimbursed$2,946,147byRioMetroand$732,106ByWCCNMforpayrollandotheroperatingexpenses.NOTE14. RELATEDENTITYTRANSACTIONSRioMetroRegionalTransitDistrict (RioMetro). TheMRCOG’s accounts receivablebalance from Rio Metro was $610,703 and the accounts payable balance to RioMetro was $11,501 at June 30, 2014. MRCOG also had from Rio Metro a cashadvancebalanceof$550,528atJune30,2014.Workforce Connection of Central New Mexico (WCCNM). The MRCOG’s accountsreceivablebalancefromWCCNMwas$115,768atJune30,2014.PaymentsmadetorelatedentitiesduringtheyearendedJune30,2014:BernalilloCounty $ 170,024CityofAlbuquerque 7,303,250RioMetro 503,481

$ 7,976,755

SUPPLEMENTARYINFORMATION

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICONON‐MAJORSPECIALREVENUEFUNDSJune30,2014SPECIAL REVENUE FUNDS are used to account for various grants from Federal,State, and Local agencies and other sources which are restricted by the grantingagencytouseforexpendituresforspecifiedpurposes.Thefollowingisadescriptionof the purpose of the Non‐major Special Revenue Funds. Although there is nospecific authority establishing these funds, MRCOG tracks state and federalprograms in separate funds for internal and external compliance and reportingpurposes.WorkforceInvestmentAct(No.20)–TheCouncilservesastheadministrativeentityandfiscalagentfortheWorkforceConnectionofCentralNewMexico(WCCNM).TheCouncil administers the Federal Workforce Investment Act (WIA) program toensure that quality workforce development services are provided in the CentralLocal Area, and ensure compliance with the Workforce Investment Act and allapplicableregulations.LEPC(No.25)–ProvidesforagrantfromtheNewMexicoDepartmentofHomelandSecurity and Emergency Management passed through to the Local EmergencyPlanning Committee to perform the Albuquerque/Bernalillo County CommodityFlowPlanningandStudy.TemporaryAssistanceforNeedyFamilies(No.22and23)–Providessupport for theoperationsoftheTemporaryAssistanceforNeedyFamilies(TANF)programthatismanagedbyNewMexicoStateUniversityandtheNewMexicoDepartmentofHealthandHumanServices.OrthoDigitalPhotography(No.29)–Providesfortheacquisitionofregionaldigitalorthophotography and digital terrain data on a 2‐year cycle. The project includesworkingwithFederal,Stateandlocalagenciestofullyfundtheproject.SaltMissions Trail Scenic Byway (No. 32) – COG’s mission is to foster economicdevelopmentontheSaltMissionsTrailScenicByway.UndertheagreementwiththeNM Dept. of Tourism, the COG is to establish a sustainable Scenic BywaysOrganization,updatethe1998CorridorManagementPlan(CMP)andtoimplementprojects in the new CMP pursuant to Safe, Accountable, Flexible, EfficientTransportationEquityAct:ALegacyforUsers.Fundingsourceis80%FHWA.Regional Planning Organization (No. 33) – Provides for transportation planningefforts in the non‐metropolitan areas of the MRCOG district, including technicalassistance to local governments for transportationplanning, project development,andcoordinationoftransportationimprovements.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICONON‐MAJORSPECIALREVENUEFUNDSJune30,2014MetropolitanTransportationPlanningOrganization–FederalTransitAdministration(No.53)–Providesfortheconductofthecooperative,coordinated,comprehensive(3c) transportation system planning process in the Albuquerque MetropolitanPlanning Area, with emphasis on the development of cost effective multimodaltransportationimprovementprogramswhichincludetheplanning,engineering,anddesigning of Federal Transit projects. These funds are authorized by the U.S.Department of Transportation, Public Law 109‐59 Safe, Accountable, Flexible,EfficientTransportationEquityAct:ALegacyforUsers(SAFETEA‐LU).LocalGovernmentAssistance(No.54)–Providesfortheassistanceof localagenciesinworking cooperativelywithNMDOT to quickly execute funding agreements forprogrammedprojects,tohelpidentifyandrectifyschedulingproblems,andidentifyjointopportunitieswithNMDOTandlocalagencies.MetropolitanTransportationPlanningOrganization (MPO)–Other local funds (No.55,50,51&63)–RioMetroandother localgovernment’sparticipationinMPOandothertransportationplanningactivities.RegionalTravelDemand Survey (No.56) – Provides inputs to the regional traveldemand model for the Albuquerque Metropolitan Planning Area (AMPA). Thesurvey is comprised of a household survey and an on‐board travel survey. ThesurveysareprojectedtobecompletedbyJune2014.ClimateChangeandTransportationScenarioPlanningProject(No.65)–Providesforthe collaboration between NMDOT and Mid‐Region Metropolitan PlanningOrganization(MRMPO)toconducttheMulti‐AgencyTransportation,LandUse,andClimate Change Scenario Planning Project. The projectwill inform transportationandlandusedecision‐makingintheselectedstudyareabyusingscenarioplanningtoanalyzestrategiestoreduceGHGemissionandadapttoclimatechangeimpacts.Transportation Surveillance Program (No. 67) – Provides for the collection andprocessingoftrafficdataforroutinemonitoringofthetransportationnetworkandspecialneedstrafficcounts.DirectionalvolumedataarecollectedonallmajorroadsintheAlbuquerqueMetropolitanPlanningArea(AMPA).TravelTimeProgram(No.68)–Provides for theacquisitionofregional travel timeinformation for the top30congestedroadways, Interstate25and Interstate40 intheAlbuquerqueMetropolitanPlanningArea(AMPA).

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICONON‐MAJORSPECIALREVENUEFUNDS(CONTINUED)June30,2014Agribusiness (No.70) – Provides for technical and planning assistance to entitiesrelatingtoregionalagriculturalissues.Thefundingfortheprogramiscollaborativeeffortbetweenlocalgovernmentandtheprivatesector.EconomicDevelopmentAdministration(No.72)–Providesfortechnicalandplanningassistance to entities seeking funds from the U.S. Department of Commerce,Economic Development Administration and maintenance of the region’sComprehensiveEconomicDevelopmentStrategy(CEDS).EDA Innovation Center (No. 74) – Funding provided by the U.S. Department ofCommerce,EconomicDevelopmentAdministration,toconductastrategicplanningprocesstodefine,identify,andcharacterizeinnovationclusterswithintheregion.CommuterRailCapital–PhaseII(No.85)–ProvidesforcapitalcostsassociatedwithPhaseIIofthecommuterrailsystem(BernalillotoSantaFe).TheNewMexicoStateLegislature approved the funding as part of Governor Richard’s InvestmentPartnership(GRIP).LocalityPlanningAssistance(No.93)–Provides for technicalassistancetomembergovernments in the development of plans and programs including developing orupdatingordinances,zoningcodes,andlong‐rangestrategies.Veterans Initiative Website (No. 350&351) – Funding provided by the U.S.Department of Transportation, Federal Transit Administration, to create andimplement a regional One‐Call/One‐Click center to connect public transportationserviceswithhumanservicesprograms,withanemphasisonveteransandmilitaryfamilies.VeteransInitiativeWebsite(No.352)–Fundingprovidedby theU.S.DepartmentofTransportation, Federal Transit Administration, to develop an extensive mediacampaign,todesignandproducebrochuresandotherannouncements,todistributeinformational items among all participating partners and veteran‐relatedorganizationsthroughoutthefourcountyareaofcentralNewMexicorelatingtotheregionalOne‐Call/One‐ClickCenter.JobAccess/ReverseCommute(No.450) – Funding provided by the Federal TransitAdministrationtodeveloptransportationservicestoconnectwelfarerecipientsandlow‐incomepersonstoemploymentandsupportservices.

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICONON‐MAJORSPECIALREVENUEFUNDS(CONTINUED)June30,2014New Freedom (No. 452 and 453) – Funding provided by the Federal TransitAdministrationtofornewpublictransportationservicesandpublictransportationalternativesbeyondthoserequiredbytheAmericanswithDisabilitiesAct,toassistindividuals with disabilities with transportation, including transportation to andfromjobsandemploymentsupportservices.UNM/CNMTransportationStudy(No.460)–FundingisprovidedbyFederalTransitAdministration and the Federal Highway Administration’s Transportation andCommunityandSystemPreservationprogramtoperformacomprehensivestudyoftransportation issues associated with the UNM and CNM main campuses andsurroundingareas.LosLunasCorridorStudy (No.470) – Funding provided by the New Mexico StateLegislature to evaluate existing and future transportation problems and needswithintheNM6corridorintheLosLunasarea.RegionalCriminalJustice(No.480) – UNM/CNMTransportation Study (No. 480) –Funding is provided by Federal Transit Administration, and is separate fundingfrom FHWA’s TCSP funds, to perform a comprehensive study of transportationissuesassociatedwiththeUNMandCNMmaincampusesandsurroundingareas.

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOCOMBININGBALANCESHEETALLNON‐MAJORGOVERNMENTALFUNDSJune30,2014

SALT UPWP UPWPMISSIONS Uptown Paseodel FTA LOCALGOV

WORKFORCE TANF LEPC ORTHO TRAIL RPO Study Volcan NMSHTD ASSISTANCE#20 #22/23 #25 #29 #32 #33 #50 #51 #53 #54

ASSETSCashandcashequivalents $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Otherreceivables ‐ ‐ ‐ 23,000 1,000 20,215 ‐ ‐ 68,081 134,210Duefromotherfunds ‐ ‐ ‐ 125,881 5,500 ‐ 79,063 ‐ ‐ ‐Relatedentityreceivable 115,768 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Grantreimbursementsreceivable ‐ ‐ ‐ ‐ ‐ ‐ 47,438 19,025 ‐ (126,619)

Totalassets $ 115,768 ‐ ‐ 148,881 6,500 20,215 126,501 19,025 68,081 7,591

LIABILITIESAccountspayable $ ‐ ‐ ‐ ‐ ‐ 71 ‐ ‐ 60 ‐Accruedliabilities 17,994 ‐ ‐ ‐ ‐ 12,029 47,438 19,025 7,553 830Duetootherfunds 97,774 ‐ ‐ ‐ ‐ 8,115 ‐ ‐ 60,468 6,761Unearnedgrantadvances - ‐ - 148,881 6,500 - 79,063 - - -

Totalliabilities 115,768 ‐ ‐ 148,881 6,500 20,215 126,501 19,025 68,081 7,591

FUNDBALANCESUnassigned ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalliabilitiesandfundbalances $ 115,768 ‐ ‐ 148,881 6,500 20,215 126,501 19,025 68,081 7,591

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ASSETSCashandcashequivalentsOtherreceivablesDuefromotherfundsRelatedentityreceivableGrantreimbursementsreceivable

Totalassets

LIABILITIESAccountspayableAccruedliabilitiesDuetootherfundsUnearnedgrantadvances

Totalliabilities

FUNDBALANCESUnassigned

Totalliabilitiesandfundbalances

AMPA COMPLETE CLIMATE TRAVEL EDAUPWP WideRegional STREETS CHANGE& TIME INNOVATION

RioMetro TravelSurvey BERNALILLO TRANS CTCP PROGRAM AGRIBUSINESS EDA CENTER CommuterRail LPA#55 #56 #63 #65 #67 #68 #70 #72 #74 #85 #93

‐$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ 115,055 ‐ 8,455 53,852 133,787 8,677 21,495 14,507 ‐ ‐‐ ‐ ‐ ‐ ‐ ‐ 13,710 ‐ 9,438 ‐ 13,022

10,644 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ 107,712 2,360 30,000 1,360 ‐ ‐ (3,716) ‐ 27,231 ‐

10,644$ 222,767 2,360 38,455 55,212 133,787 22,387 17,779 23,945 27,231 13,022

‐$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐195 126,067 ‐ 30,500 9,633 212 50 1,163 1,168 ‐ 13,022

10,449 96,700 2,360 7,955 45,579 133,575 ‐ 1,616 ‐ 27,231 ‐- - - - - - 22,337 15,000 22,777 - -

10,644 222,767 2,360 38,455 55,212 133,787 22,387 17,779 23,945 27,231 13,022

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

10,644$ 222,767 2,360 38,455 55,212 133,787 22,387 17,779 23,945 27,231 13,022

50


ASSETSCashandcashequivalentsOtherreceivablesDuefromotherfundsRelatedentityreceivableGrantreimbursementsreceivable

Totalassets

LIABILITIESAccountspayableAccruedliabilitiesDuetootherfundsUnearnedgrantadvances

Totalliabilities

FUNDBALANCESUnassigned

Totalliabilitiesandfundbalances

Veteran's Veteran's Veteran's LOSLUNAS UNM/CNMInitiativeWebsite InitiativeWebsite InitiativeWebsite NEW TCSP CORRIDOR TRANSPORTATION

‐Admin ‐Admin ‐Research JARC FREEDOM CNM/UNM STUDY STUDY#350 #351 #352 #450 #452/453 #460 #470 #480 TOTAL

‐$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐1,286 ‐ (185) ‐ ‐ ‐ ‐ 1,100 604,535‐ 1,068 205 778 1,283 ‐ ‐ 1,446 251,394‐ ‐ ‐ ‐ ‐ ‐ ‐ 275 126,6871 4,268 ‐ 5,959 55,793 5,127 4 ‐ 175,943

1,287$ 5,336 20 6,737 57,076 5,127 4 2,821 1,158,559

‐$ ‐ ‐ ‐ 11,501 ‐ ‐ ‐ 11,63214 5,336 20 6,737 45,573 1,894 ‐ 2,821 349,274

1,273 ‐ 185 ‐ 2 3,233 4 ‐ 503,280- - - - ‐ - - - 294,558

1,287 5,336 205 6,737 57,076 5,127 4 2,821 1,158,744

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

1,287$ 5,336 205 6,737 57,076 5,127 4 2,821 1,158,744

51

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOCOMBININGSTATEMENTOFREVENUES,EXPENDITURESANDCHANGESINFUNDBALANCESALLNON‐MAJORGOVERNMENTALFUNDSYearEndedJune30,2014

SALT UPWP UPWP AMPAMISSIONS Uptown Paseodel FTA LOCALGOV UPWP WideRegional

WORKFORCE TANF LEPC ORTHO TRAIL RPO Study Volcan NMSHTD ASSISTANCE RioMetro TravelSurveyREVENUES #20 #22/23 #25 #29 #32 #33 #50 #51 #53 #54 #55 #56IntergovernmentalFederal $ 732,106 ‐ 48,750 ‐ ‐ 66,503 ‐ ‐ 125,165 18,590 ‐ 721,342State ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Chargesforservices ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Local ‐ ‐ ‐ 124,971 ‐ ‐ 47,438 19,025 ‐ ‐ 18,322 ‐ReimbursementofRioMetrocosts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Miscellaneous ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalrevenues $ 732,106 ‐ 48,750 124,971 ‐ 66,503 47,438 19,025 125,165 18,590 18,322 721,342

EXPENDITURESCurrent:Operating $ 721,914 ‐ 48,750 ‐ ‐ 92,438 47,438 19,025 138,011 30,063 18,322 844,267Contractual ‐ ‐ ‐ 124,971 ‐ ‐ ‐ ‐ 18,445 ‐ ‐ ‐IncurredonbehalfofRioMetro ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Capitaloutlay 10,192 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Principalandinterest ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalexpenditures 732,106 ‐ 48,750 124,971 ‐ 92,438 47,438 19,025 156,456 30,063 18,322 844,267

OTHERFINANCINGSOURCES/USESOperatingtransfersin ‐ ‐ ‐ ‐ ‐ 25,935 ‐ ‐ 31,291 11,473 ‐ 122,925Operatingtransfersout ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Changeinfundbalance ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Fundbalance,beginningofyear ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Fundbalance,endofyear $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

52


REVENUESIntergovernmentalFederalStateChargesforservicesLocalReimbursementofRioMetrocostsMiscellaneous

Totalrevenues

EXPENDITURESCurrent:OperatingContractualIncurredonbehalfofRioMetroCapitaloutlayPrincipalandinterest

Totalexpenditures

OTHERFINANCINGSOURCES/USESOperatingtransfersinOperatingtransfersout

Changeinfundbalance

Fundbalance,beginningofyear

Fundbalance,endofyear

COMPLETE CLIMATE TRAVEL EDA Veteran'sSTREETS CHANGE& TIME INNOVATION InitiativeWebsite

BERNALILLO TRANS CTCP PROGRAM AGRIBUSINESS EDA CENTER CommuterRail LPA ‐Admin#63 #65 #67 #68 #70 #72 #74 #85 #93 #350

‐$ 51,906 332,240 180,975 ‐ 64,721 47,325 ‐ ‐ 8,273‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 95,743 ‐‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2,360 ‐ ‐ ‐ 11,340 ‐ 22,361 ‐ 3,110 ‐‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2,360$ 51,906 332,240 180,975 11,340 64,721 69,686 ‐ 98,853 8,273

2,360$ 51,906 359,129 20,843 11,340 107,868 45,256 ‐ 212,133 10,341‐ ‐ 40,634 190,972 ‐ ‐ 23,894 ‐ 2,562 ‐‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2,360 51,906 399,763 211,815 11,340 107,868 69,150 ‐ 214,695 10,341

‐ ‐ 67,523 30,840 ‐ 43,147 ‐ ‐ 115,842 2,068‐ ‐ ‐ ‐ ‐ ‐ (536) ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

53


REVENUESIntergovernmentalFederalStateChargesforservicesLocalReimbursementofRioMetrocostsMiscellaneous

Totalrevenues

EXPENDITURESCurrent:OperatingContractualIncurredonbehalfofRioMetroCapitaloutlayPrincipalandinterest

Totalexpenditures

OTHERFINANCINGSOURCES/USESOperatingtransfersinOperatingtransfersout

Changeinfundbalance

Fundbalance,beginningofyear

Fundbalance,endofyear

Veteran's Veteran's LOSLUNAS UNM/CNMInitiativeWebsite InitiativeWebsite NEW TCSP CORRIDOR TRANSPORTATION

‐Admin ‐Research JARC FREEDOM CNM/UNM STUDY STUDY#351 #352 #450 #452/453 #460 #470 #480 TOTAL

57,125$ 2,195 178,528 213,669 62,328 ‐ 102,577 3,014,318‐ ‐ ‐ ‐ ‐ ‐ ‐ 95,743‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐ ‐ 25,644 274,571‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

57,125$ 2,195 178,528 213,669 62,328 ‐ 128,221 3,384,632

26,539$ 2,195 178,528 213,669 22,586 ‐ 44,848 3,269,769‐ ‐ ‐ ‐ 50,363 ‐ 83,373 535,214‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

44,867 ‐ ‐ ‐ ‐ ‐ ‐ 55,059‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

71,406 2,195 178,528 213,669 72,949 ‐ 128,221 3,860,042

14,281 ‐ ‐ ‐ 10,621 ‐ ‐ 475,946‐ ‐ ‐ ‐ ‐ ‐ ‐ (536)

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐$ ‐ ‐ ‐ ‐ ‐ ‐ ‐

54

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSTATEMENTOFREVENUE,EXPENDITURESANDCHANGESINFUNDBALANCESBUDGETANDACTUALNON‐MAJORSPECIALREVENUEFUNDSYearEndedJune30,2014

Variances Variances VariancesInitial Final Favorable Initial Final Favorable Initial Final FavorableBudget Budget Actual (unfavorable) Budget Budget Actual (unfavorable) Budget Budget Actual (unfavorable)

REVENUESIntergovernmentalFederal $ 750,000 750,000 732,106 (17,894) ‐ 48,750 48,750 ‐ ‐ ‐ ‐ ‐State ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Local ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 400,000 400,000 124,971 (275,029)ReimbursementofRioMetrocosts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Miscellaneous ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalrevenues $ 750,000 750,000 732,106 (17,894) ‐ 48,750 48,750 ‐ 400,000 400,000 124,971 (275,029)

EXPENDITURESCurrent:GeneralGovernment $ 750,000 750,000 732,106 17,894 ‐ 48,750 48,750 ‐ 400,000 400,000 124,971 275,029IncurredonbehalfofRioMetro ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

NoncurrentCapitaloutlay ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalexpenditures 750,000 750,000 732,106 17,894 ‐ 48,750 48,750 ‐ 400,000 400,000 124,971 275,029

Excessofrevenuesandotherfinancingsourcesoverexpenditures ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Otherfinancingsources(uses)Transfersin ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Transfersout ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Changeinfundbalance $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐


WORKFORCE#20 ORTHO#29LEPC#25

55


Variances Variances Variances VariancesInitial Final Favorable Initial Final Favorable Initial Final Favorable Initial Final FavorableBudget Budget Actual (unfavorable) Budget Budget Actual (unfavorable) Budget Budget Actual (unfavorable) Budget Budget Actual (unfavorable)

REVENUESIntergovernmentalFederal $ ‐ ‐ ‐ ‐ 61,011 74,116 66,503 (7,613) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ State ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Local ‐ 1,250 ‐ (1,250) ‐ ‐ ‐ ‐ ‐ 79,063 47,438 (31,625) ‐ 74,900 19,025 (55,875)ReimbursementofRioMetrocosts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalrevenues $ ‐ 1,250 ‐ (1,250) 61,011 74,116 66,503 (7,613) ‐ 79,063 47,438 (31,625) ‐ 74,900 19,025 (55,875)

EXPENDITURESCurrent:Generalgovernment $ ‐ 1,250 ‐ 1,250 76,264 100,051 92,438 7,613 ‐ 79,063 47,438 31,625 ‐ 74,900 19,025 55,875IncurredonbehalfofRioMetro ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

NoncurrentCapitaloutlay ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalexpenditures ‐ 1,250 ‐ 1,250 76,264 100,051 92,438 7,613 ‐ 79,063 47,438 31,625 ‐ 74,900 19,025 55,875

Excessofrevenuesandotherfinancingsourcesoverexpenditures ‐ ‐ ‐ ‐ (15,253) (25,935) (25,935) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Otherfinancingsources(uses)Transfersin ‐ ‐ ‐ ‐ 15,253 25,935 25,935 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfersout ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Changeinfundbalance $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐


RPO#33SALTMISSIONTRAIL#32 UptownStudy#50 PaseodelVolcan#51

56



REVENUESIntergovernmentalFederal $ 537,875 246,484 125,165 (121,319) 152,456 152,800 18,590 (146,071) ‐ ‐ ‐ ‐ 1,000,000 1,000,000 721,342 (278,658)State ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Local ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 200,000 18,322 (181,678) ‐ ‐ ‐ ‐ ReimbursementofRioMetrocosts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalrevenues $ 537,875 246,484 125,165 (121,319) 152,456 152,800 18,590 (146,071) ‐ 200,000 18,322 (181,678) 1,000,000 1,000,000 721,342 (278,658)

EXPENDITURESCurrent:Generalgovernment $ 672,344 308,105 156,456 151,649 190,570 191,000 30,063 191,218 ‐ 200,000 18,322 181,678 1,170,412 1,170,412 844,267 326,145IncurredonbehalfofRioMetro ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Noncurrent: ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Capitaloutlay ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalexpenditures 672,344 308,105 156,456 151,649 190,570 191,000 30,063 191,218 ‐ 200,000 18,322 181,678 1,170,412 1,170,412 844,267 326,145

Excessofrevenuesandotherfinancingsourcesoverexpenditures (134,469) (61,621) (31,291) 30,330 (38,114) (38,200) (11,473) 26,727 ‐ ‐ ‐ ‐ (170,412) (170,412) (122,925) 47,487

Otherfinancingsources(uses)Transferin 134,469 61,621 31,291 30,330 38,114 38,200 11,473 26,727 ‐ ‐ ‐ ‐ 170,412 170,412 122,925 47,487Transferout ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Changeinfundbalance $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐


UPWP/FTA/NMSHTD#53 UPWP‐LOCALGOVTASSISTANCE#54 UPWP‐RioMetro#55 AMPAWIDETRAVELSURVEY#56

57

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSTATEMENTOFREVENUE,EXPENDITURESANDCHANGESINFUNDBALANCESBUDGETANDACTUALNON‐MAJORSPECIALREVENUEFUNDYearEndedJune30,2014


REVENUESIntergovernmentalFederal ‐ ‐ ‐ ‐ ‐ 120,000 51,906 (68,094) 580,942 580,942 332,240 (248,702) 276,126 276,126 180,975 (95,151)State ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Local ‐ 29,369 2,360 (27,009) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ReimbursementofRioMetrocosts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalrevenues ‐ 29,369 2,360 (27,009) ‐ 120,000 51,906 (68,094) 580,942 580,942 332,240 (248,702) 276,126 276,126 180,975 (95,151)

EXPENDITURESCurrent:Generalgovernment ‐ 29,369 2,360 27,009 ‐ 120,000 51,906 68,094 698,899 698,899 399,763 299,136 323,181 323,181 211,815 111,366IncurredonbehalfofRioMetro ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Noncurrent:Capitaloutlay ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalexpenditures ‐ 29,369 2,360 27,009 ‐ 120,000 51,906 68,094 698,899 698,899 399,763 299,136 323,181 323,181 211,815 111,366

Excessofrevenuesandotherfinancingsourcesoverexpenditures ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (117,957) (117,957) (67,523) 50,434 (47,055) (47,055) (30,840) 16,215

Otherfinancingsources(uses)Transferin ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 117,957 117,957 67,523 50,434 47,055 47,055 30,840 (16,215)Transferout ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Changeinfundbalance ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐


COMPLETESTREETSBERNALILLO#63 ClimateChange&Transportation#65 CTCP#67 TIMETRAVELPROGRAM#68

58



REVENUESIntergovernmentalFederal ‐ ‐ ‐ ‐ 60,000 67,911 64,721 (3,190) 85,984 86,351 47,325 (39,026)State ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Local ‐ 40,000 11,340 (28,660) ‐ ‐ ‐ ‐ 57,323 58,103 22,361 (35,742)ReimbursementofRioMetrocosts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalrevenues ‐ 40,000 11,340 (28,660) 60,000 67,911 64,721 (3,190) 143,307 144,454 69,686 (74,768)

EXPENDITURESCurrent:Generalgovernment ‐ 40,000 11,340 28,660 100,000 113,185 107,868 5,317 143,307 143,918 69,150 74,768IncurredonbehalfofRioMetro ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ - ‐

Noncurrent:Capitaloutlay ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalexpenditures ‐ 40,000 11,340 28,660 100,000 113,185 107,868 5,317 143,307 143,918 69,150 74,768

Excessofrevenuesandotherfinancingsourcesoverexpenditures ‐ ‐ ‐ ‐ (40,000) (45,274) (43,147) 2,127 ‐ 536 536 ‐

Otherfinancingsources(uses)Transferin ‐ ‐ ‐ ‐ 40,000 45,274 43,147 2,127 ‐ ‐ ‐ ‐Transferout ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 536 (536) ‐

Changeinfundbalance ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,072 ‐


AGRIBUSINSS#70 EDA#72 EDAINNOVATIONCENTER#74

59


Variances VariancesInitial Final Favorable Initial Final FavorableBudget Budget Actual (unfavorable) Budget Budget Actual (unfavorable)

REVENUESIntergovernmentalFederal $ ‐ ‐ ‐ ‐ 326,000 326,000 67,593 (258,407)State 95,743 95,743 95,743 ‐ ‐ ‐ ‐ ‐Local ‐ ‐ 3,110 3,110 ‐ ‐ ‐ ‐ReimbursementofRioMetrocosts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalrevenues $ 95,743 95,743 98,853 3,110 326,000 326,000 67,593 (258,407)

EXPENDITURESCurrent:Generalgovernment $ 191,486 216,486 214,695 1,791 407,500 407,500 83,942 323,558IncurredonbehalfofRioMetro ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Noncurrent:Capitaloutlay ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalexpenditures 191,486 216,486 214,695 1,791 407,500 407,500 83,942 323,558

Excessofrevenuesandotherfinancingsourcesoverexpenditures (95,743) (120,743) (115,842) 4,901 (81,500) (81,500) (16,349) 65,151

Otherfinancingsources(uses)Transferin 95,743 120,743 115,842 (4,901) 81,500 81,500 16,349 65,151Transferout ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Changeinfundbalance $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

LPA#93 Veteran'sInitiativeWebsite350,351&352

60



REVENUESIntergovernmentalFederal $ 244,800 399,081 213,669 (185,412) 99,275 91,863 62,328 (29,535) 361,918 313,214 102,577 (210,637)State ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐Local ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 90,479 78,304 25,644 (52,660)ReimbursementofRioMetrocosts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalrevenues $ 244,800 399,081 213,669 (185,412) 99,275 91,863 62,328 (29,535) 452,397 391,518 128,221 (263,297)

EXPENDITURESCurrent:Generalgovernment $ 244,800 399,081 213,669 185,412 116,193 107,518 72,949 34,569 452,397 391,518 128,221 263,297IncurredonbehalfofRioMetro ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Noncurrent:Capitaloutlay ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Totalexpenditures 244,800 399,081 213,669 185,412 116,193 107,518 72,949 34,569 452,397 391,518 128,221 263,297

Excessofrevenuesandotherfinancingsourcesoverexpenditures ‐ ‐ ‐ ‐ (16,918) (15,655) (10,621) 5,034 ‐ ‐ ‐ ‐

Otherfinancingsources(uses)Transfersin ‐ ‐ ‐ ‐ 16,918 15,655 10,621 (5,034) ‐ ‐ ‐ ‐Transfersout ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Changeinfundbalance $ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

NEWFREEDOM#452/453 TCSPCNM/UNM#460 UNM/CNMTRANSPORTATIONSTUDY‐FTA#480

61

OTHERSUPPLEMENTARYINFORMATION

Descriptionof Typeof SweepCollateralPledged Pledged CUSIP Valueat

Account Collateral Collateral Number June30,2014 Safekeeper

MRCOGSweepRepurchaseAgreement Shares 3138XDTT7 189,712$ WellsFargo

AccruedInterest Interest 3138XDTT7 595 WellsFargo

TotalCollateral 190,307

Bankbalance 186,575

Collateralrequiredat102% 190,307

ExcessCollateral ‐$

CombinedbankAccountsDescriptionof Typeof FairMarket

Nameof Pledged Pledged CUSIP Valueat LocationDepository Collateral Collateral Maturity Number June30,2014 ofSafekeeper

WellsFargo FN Bonds 7/1/2043 3138W9BD1 24,889$ BankofNewYorkMellonWellsFargo FN Bonds 1/1/2043 31418ANY0 3,483,350 BankofNewYorkMellon

TotalPledgedCollateral 3,508,239$

BankAccountBalancesMRCOGChecking 1,500,000$MRCOGSavings 679,221 TotalBankBalances 2,179,221FDICCoverage (500,000)

UninsuredAmount 1,679,221

Collateralrequiredat50% 839,611

PledgedCollateral (3,508,239)

ExcessCollateral (2,668,629)$

SCHEDULEOFPLEDGEDCOLLATERALJune30,2014


62

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSCHEDULEOFEXPENDITURESOFFEDERALAWARDSYearEndedJune30,2014

FederalCFDA Grant/PassThrough FederalNumber Number Fund# Expenditures

FederalGrantor/ProgramTitle

U.S.DepartmentofCommerceEconomicDevelopmentAdministration:

EconomicDevelopmentPlanningGrant 11.302 08‐83‐04533 072 64,721$InnovationCenterGrant 11.302 08‐79‐04463 074 47,325

TotalU.S.DepartmentofCommerceDirect 112,046

U.S.DepartmentofHomelandSecurityPassedthroughNewMexicoDepartmentofHomelandSecurity&EmergencyManagement

HazardousMaterialEmergencyPreparedness 20.703HMHMP0293120100‐

ABQ‐BernailloCntyLEPC 25 48,750

U.S.DepartmentofTransportationFederalTransportationAdministration(FTA)

TransitServicesProgramCluster:JobAccessandReverseCommuteProgram 20.516 NM‐37‐X018‐00 450 178,528NewFreedomProgram 20.521 NM‐57‐X003‐00 452 ‐NewFreedomProgram 20.521 NM‐57‐X006‐00 453 213,669

TotalTransitServicesProgramCluster 392,197

FederalTransitCapitalInvestmentGrants(Veteran'sInitiativeWebsite‐Admin) 20.500 NM‐04‐0030‐00 350/351/352 65,398AlternativesAnalysis(FTAFundsUNM/CNMAreaTransportationandLand 20.522 NM‐39‐0001‐00 480 102,577Veteran'sInitiativeWebsiteMarketingProject 20.514 NM‐26‐0004‐00 350/351/352 2,195

TotalU.S.DepartmentofTransportationDirect 562,367

U.S.DepartmentofTransportationPassedthroughStateofNewMexicoDepartmentofTransportation

HighwayPlanningandConstruction:HighwayPlanningandConstruction(RegionalPlanningOrganization) 20.205 M01037 033 66,503HighwayPlanningandConstruction(UnifiedPlanningWorkProgram) 20.205 M01028 052 1,006,269HighwayPlanningandConstruction(UnifiedPlanningWorkProgram) 20.505 M01028 053 125,165HighwayPlanningandConstruction(LocalGovernmentAssistance) 20.205 M01028 054 18,590HighwayPlanningandConstruction(TransportationSurveillanceProgram) 20.205 M01028 067 332,240HighwayPlanningandConstruction(AMPAWideTravelSurvey) 20.205 M01028 056 721,342HighwayPlanningandConstruction(TravelTimeProgram) 20.205 80500‐0000100923 068 180,975HighwayPlanningandConstruction(LandUseCoordination) 20.205 M01028 460 62,327HighwayPlanningandConstruction(ClimateChangeScenarioPlanning) 20.205 HEPN‐0713‐M445‐0007 065 51,906

TotalHighwayPlanningandConstruction 2,565,317

TotalU.S.DepartmentofTransportationPass‐throughAwards 2,565,317

TotalExpendituresofFederalAwards 3,288,480$

SeeNotestoScheduleofExpendituresofFederalAwards.

63

MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICONOTESTOSCHEDULEOFEXPENDITURESOFFEDERALAWARDSYearEndedJune30,2014

1. BasisofPresentation

TheaccompanyingScheduleofExpendituresofFederalAwardsincludesthefederalgrantactivityoftheMid‐RegionCouncilofGovernmentsofNewMexico(MRCOG)underprogramsofthefederalgovernmentfortheyearendedJune30,2014.TheinformationinthisscheduleispresentedinaccordancewiththerequirementoftheOfficeofManagementandBudget(OMB)CircularA‐133,AuditsofStates,LocalGovernments,andNon‐ProfitOrganizations.BecausetheschedulepresentsonlyaselectedportionoftheoperationsofMRCOG,itisnotintendedtoanddoesnotpresentthefinancialposition,changesinnetpositionorcashflowsofMRCOG.

2. SummaryofSignificantAccountingPolicies

Expendituresreportedonthescheduleofexpendituresoffederalawardsarereportedonthemodifiedaccrualbasisofaccounting.SuchexpendituresarerecognizedfollowingthecostprinciplescontainedinOMBCircularA‐87CostPrinciplesforState,LocalandIndianTribalGovernments,whereincertaintypesofexpendituresarenotallowableorarelimitedastoreimbursement.Pass‐throughentityidentifyingnumbersarepresentedwhereavailable.

3. Non‐cashAssistance

MRCOGreceivednonon‐cashfederalassistancefortheyear.

4. Subrecipients

MRCOGprovidedfederalawards(JARCandNewFreedom)toRioMetroRTD,CityofAlbuquerque,andARCAassubrecipientsduringtheyear.

Name AmountRioMetroRTDCFDA#20.516and#20.521 242,753$VSANewMexicoCFDA#20.516and#20.521 1,260ARCACFDA#20.516and#20.521 87,928AlbuquerqueTransitCFDA#20.516and#20.521 60,256Total 392,197$

5. MRCOGprovidedservicestoWorkforceSolutionsinwhichtheywerepaidwithfederaldollars.Therelationshipswiththisentityisavendorrelationshipratherthanasasubrecipient.ThosedollarsreceivedbyMRCOGundertherelatedcontractsaredetailedbelow:

Name AmountWorkforceSolutions 763,432$TotalFederalGrants 3,288,480TotalFederalgrantsandcontracts 4,051,912$

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COMPLIANCE

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ReportofIndependentAuditorsonInternalControlOverFinancialReportingandonComplianceandOtherMatters

BasedonanAuditofFinancialStatementsPerformedinAccordanceWith

GovernmentAuditingStandardsTotheBoardofDirectorsMid‐RegionCouncilofGovernmentsofNewMexicoAlbuquerque,NewMexico andMr.HectorBalderas,StateAuditorWehaveaudited,inaccordancewiththeauditingstandardsgenerallyacceptedintheUnitedStatesof America and the standards applicable to the financial audits contained in the GovernmentAuditingStandardsissuedbytheComptrollerGeneraloftheUnitedStates,thefinancialstatementsofthegovernmentalactivities,eachmajorfund,theaggregateremainingfundinformation,andthebudgetarycomparisonsofthegeneralfundandeachmajorspecialrevenuefundoftheMid‐RegionCouncilofGovernmentsofNewMexico(MRCOG)asofandfortheyearendedJune30,2014,andtherelatednotestothefinancialstatements,whichcollectivelycompriseMRCOG’sbasicfinancialstatements,thecombiningandtheindividualfundsandrelatedbudgetarycomparisonsofMRCOGaspresentedas supplementary informationandhave issuedour report thereondatedDecember15,2014.InternalControlOverFinancialReportingIn planning and performing our audit of the financial statements, we considered the MRCOG’sinternalcontroloverfinancialreporting(internalcontrol)todeterminetheauditproceduresthatareappropriate in the circumstances for thepurposeof expressingouropinionson the financialstatements,butnot forthepurposeofexpressinganopinionontheeffectivenessoftheMRCOG’sinternal control. Accordingly,wedo not express an opinion on the effectiveness of theMRCOG’sinternalcontroloverfinancialreporting.A deficiency in internalcontrol exists when the design or operation of a control does not allowmanagementoremployees,inthenormalcourseofperformingtheirassignedfunctions,toprevent,or detect and correctmisstatements on a timely basis. Amaterialweakness is a deficiency, or acombination of deficiencies, in internal control such that there is a reasonable possibility that amaterialmisstatementof theentity’s financial statementswill notbeprevented, ordetectedandcorrectedonatimelybasis.A significantdeficiency is adeficiency,or a combinationofdeficiencies, in internal control that isless severe than amaterialweakness, yet important enough tomerit attentionby those chargedwithgovernance.

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TotheBoardofDirectorsMid‐RegionCouncilofGovernmentsofNewMexicoAlbuquerque,NewMexico andMr.HectorBalderas,StateAuditorOurconsiderationofinternalcontrolwasforthelimitedpurposedescribedinthefirstparagraphofthissectionandwasnotdesignedtoidentifyalldeficienciesininternalcontroloverthatmightbematerialweaknessesorsignificantdeficiencies.Giventheselimitations,duringourauditwedidnotidentifyanydeficienciesininternalcontroloverfinancialreportingthatweconsidertobematerialweaknesses.However,materialweaknessesmayexistthathavenotbeenidentified.ComplianceandOtherMattersAspartofobtainingreasonableassuranceaboutwhethertheMRCOG’sfinancialstatementsarefreeofmaterial misstatement, we performed tests of its compliancewith certain provisions of laws,regulations, contracts and grant agreements, noncompliancewithwhich could have a direct andmaterialeffectonthedeterminationoffinancialstatementamounts.However,providinganopiniononcompliancewiththoseprovisionswasnotanobjectiveofourauditand,accordingly,wedonotexpresssuchandopinion.Theresultsofourtestsdisclosedaninstanceofnoncomplianceorothermatters that is required to be reported under Government Auditing Standards and which isdescribedintheaccompanyingscheduleoffindingsandquestionedcostsasitemFS2014‐001.Management’sResponsetoFindingsMRCOG’s response to the finding identified in our audit is described in the accompanyingscheduleof findingsandquestionedcosts.MRCOG’sresponsewasnotsubjected to theauditingprocedures applied in the audit of the financial statements and, accordingly, we express noopiniononit.PurposeofthisReportThe purpose of this report is solely to describe the scope of our testing of internal control andcomplianceandtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessoftheentity’sinternalcontroloroncompliance.Thisreportisanintegralpartofanauditperformedinaccordance with GovernmentAuditingStandards in considering the entity’s internal control andcompliance.Accordingly,thiscommunicationisnotsuitableforanyotherpurpose.


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ReportofIndependentAuditorsonComplianceforEachMajorFederalProgramandReportonInternalControl

OverComplianceasRequiredbyOMBCircularA‐133TotheBoardofDirectorsMid‐RegionCouncilofGovernmentsofNewMexicoAlbuquerque,NewMexico andMr.HectorBalderas,StateAuditorReportonComplianceforeachMajorFederalProgramWehave audited theMid‐Region Council of Governments ofNew Mexico’s (MRCOG), compliancewith the types of compliance requirements described in the OMB Circular A‐133 ComplianceSupplementthatcouldhaveadirectandmaterialeffectoneachofMRCOG’smajorfederalprogramsfortheyearendedJune30,2014.MRCOG’smajorfederalprogramsareidentifiedinthesummaryofauditor’sresultssectionoftheaccompanyingscheduleoffindingsandquestionedcosts.Management’sResponsibilityManagement is responsible for compliancewith the requirements of laws, regulations, contracts,andgrantsapplicabletoitsfederalprograms.Auditor’sResponsibilityOur responsibility is to express an opinion on compliance for each of MRCOG’s major federalprograms based on our audit of the types of compliance requirements referred to above. WeconductedourauditofcomplianceinaccordancewithauditingstandardsgenerallyacceptedintheUnited States of America; the standards applicable to financial audits contained in GovernmentAuditingStandards,issuedby theComptrollerGeneral of theUnited States; andOMBCircularA‐133,AuditsofStates,LocalGovernments,andNon‐ProfitOrganizations.Those standards and OMBCircularA‐133require thatweplanandperformtheaudit toobtainreasonableassuranceaboutwhethernoncompliancewith the typesof compliance requirements referred to above that couldhaveadirectandmaterialeffectonamajorfederalprogramoccurred.Anauditincludesexamining,onatestbasis,evidenceaboutMRCOG’scompliancewiththoserequirementsandperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.

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TotheBoardofDirectorsMid‐RegionCouncilofGovernmentsofNewMexicoAlbuquerque,NewMexico andMr.HectorBalderas,StateAuditorWebelievethatourauditprovidesareasonablebasisforouropiniononcomplianceforeachmajorfederal program. However, our audit does not provide a legal determination on MRCOG’scompliance.OpiniononEachMajorFederalProgramIn our opinion, MRCOG complied, in all material respects, with the types of compliancerequirements referred to above that couldhave adirect andmaterial effect on eachof itsmajorfederalprogramfortheyearendedJune30,2014.ReportonInternalControlOverComplianceManagement ofMRCOG is responsible for establishing andmaintaining effective internal controlover compliance with the types of compliance requirements referred to above. In planning andperformingourauditofcompliance,weconsideredMRCOG'sinternalcontrolovercompliancewiththe types of requirements that could have a direct and material effect on each major federalprogram to determine the auditing procedures that are appropriate in the circumstances for thepurposeofexpressingouropiniononcomplianceforeachmajorfederalprogramandtotestandreportoninternalcontrolovercomplianceinaccordancewithOMBCircularA‐133,butnotforthepurpose of expressing an opinion on the effectiveness of internal control over compliance.Accordingly,wedonotexpressanopinionon theeffectivenessofMRCOG’s internal controlovercompliance.Adeficiencyininternalcontrolovercomplianceexistswhenthedesignoroperationofacontrolovercompliance does not allowmanagement or employees, in the normal course of performing theirassigned functions, to prevent, or detect and correct, noncompliance with a type of compliancerequirement of a federal program on a timely basis. Amaterialweakness ininternalcontrolovercompliance is a deficiency, or a combination of deficiencies, in internal control over compliancesuchthatthereisareasonablepossibilitythatmaterialnoncompliancewithatypeofcompliancerequirement of a federal programwill not be prevented, or detected and corrected, on a timelybasis.Asignificantdeficiencyininternalcontrolovercomplianceisadeficiency,oracombinationofdeficiencies,ininternalcontrolovercompliancewithatypeofcompliancerequirementofafederalprogram that is less severe than a material weakness in internal control over compliance, yetimportantenoughtomeritattentionbythosechargedwithgovernance.

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TotheBoardofDirectorsMid‐RegionCouncilofGovernmentsofNewMexicoAlbuquerque,NewMexico andMr.HectorBalderas,StateAuditorOurconsiderationofinternalcontrolovercompliancewasforthelimitedpurposedescribedin the first paragraph of this section and was not designed to identify all deficiencies ininternal control over compliance that might be material weaknesses or significantdeficiencies.Wedidnotidentifyanydeficienciesininternalcontrolovercompliancethatweconsidertobematerialweaknesses.However,materialweaknessesmayexistthathavenotbeenidentified.Thepurposeofthisreportoninternalcontrolovercomplianceissolelytodescribethescopeofourtestingofinternalcontrolovercomplianceandtheresultsofthattestingbasedontherequirements ofOMBCircularA‐133.Accordingly, this report is not suitable for any otherpurpose.


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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSUMMARYSCHEDULEOFPRIORAUDITFINDINGSYearEndedJune30,2014None

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSCHEDULEOFFINDINGSANDQUESTIONEDCOSTSYearEndedJune30,2014A. SUMMARYOFAUDITORS'RESULTS FinancialStatements Typeofauditors'reportissued Unmodified Internalcontroloverfinancialreporting:

Materialweakness(es)identified? Yes No Significantdeficiency(ies)identified? Yes NoneReported

Non‐compliancematerialtofinancialstatementsnoted? Yes No

MajorFederalAwards Internalcontrolovermajorfederalprograms:

Materialweakness(es)identified? Yes No Significantdeficiency(ies)identified? Yes NoneReported

Typeofauditor'sreportissuedoncomplianceformajorfederalprograms: Unmodified

Anyauditfindingsdisclosedthatarerequiredtobereportedinaccordancewithsection510(a)ofCircularA‐133? Yes No

IdentificationofMajorFederalPrograms:CFDANumber NameofMajorFederalProgramorCluster20.205 HighwayPlanningandConstruction20.516&20.521 TransitServicesProgramClusterDollarthresholdusedtodistinguishbetweentypeA andtypeBprograms $ 300,000Auditeequalifiedaslow‐riskauditee? Yes No

X

X

X

X

X

X

X

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOSCHEDULEOFFINDINGSANDQUESTIONEDCOSTS(CONTINUED)YearEndedJune30,2014B. FINDINGS–FINANCIALSTATEMENTS2014‐001ViolationoftheFairLaborStandardsAct,(Findingsthatdonotrisetothelevelofasignificantdeficiency)Condition:Duringour inquirywiththeMRCOGFinanceManagerwenotedtheU.S.Department of Labor performed an audit and self‐disclosed towhom that payrollhours were not properly documented and compensated. As a result the affectedemployees were found to be due time and a half totaling $13,066 for allundocumentedhoursinexcessof40hoursinasevenconsecutivedayperiod.Criteria: Per Section 7 of the Fair Labor Standards Act (Act) Unless, exemptedemployeescoveredbytheActmustreceiveovertimepayforhoursworkedinexcessof40inaworkweekataratenotlessthantimeandone‐halftheirregularratesofpay.ThereisnolimitintheActonthenumberofhoursanemployeeaged16andoldermayworkinanyworkweek.TheActdoesnotrequireovertimepayforworkonSaturdays,Sundays,holidays,orregulardaysofrest,assuch.Effect:MRCOGisinviolationoftheFairLaborStandardsActSection7.Cause:Thehoursworkedbytheemployeeswerenotbeingproperlydocumented.Auditor’sRecommendation:We recommendMRCOG implement a system to bettertrackanddocumenttheovertimehoursworkedbyemployees.Management’sResponse: Management ofMRCOG had USDOL conduct trainings sotheycouldbeincomplianceinthefuture.Managementalsoagreedtoinstituteanewtimekeepingsystemaswellasensurethefederalminimumwageposterispostedintheestablishment.C. FINDINGS–FEDERALAWARD NONE

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MID‐REGIONCOUNCILOFGOVERNMENTSOFNEWMEXICOEXITCONFERENCEYearEndedJune30,2014AnexitconferencewasheldonDecember11,2014inaclosedsession.Thecontentsofthisreportwerediscussed.Presentattheexitconferencewere:

RepresentingMRCOG: PhillipGasteyer BoardChair DeweyCave ExecutiveDirector ThaddeusLucero DirectorofPlanningand GeneralServices AmyMyer,CPA FinanceManager RepresentingMossAdamsLLP: LarryCarmony,CPA On‐SiteManager MichaelMcGinley,CPA SeniorAccountantPREPARATIONOFFINANCIALSTATEMENTSThe financial statements were prepared with the assistance of Moss Adams LLPfrom the books and records of the Mid‐Region Council of Governments ofNew Mexico. The financial statements and related footnotes remain theresponsibilityofmanagement.

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