Yuma County, Arizona comprehensive annual financial report: fiscal year ended June 30...

              Comprehensive
Annual Financial Report
For the Fiscal Year
1985 1986 1987 Ended June 30, 2002
1988 1989 1990
1991 1992 1993
1994 1995 1996
1997 1998 1999
2000 2001
Yuma County
Administration Building
198 Main Street
Yuma, AZ 85364
2002
About the Cover:
Since Fiscal Year 1985, Yuma County has published its annual audit
under an array of covers. Through Fiscal Year 1985 to 2000, the
common thread of Yuma County’s Financial Statements was that they
were prepared under the minimum requirements as General Purpose
Financial Statements.
Fiscal Year 2001 began a new tradition in Yuma County’s financial
reporting with the introduction of their first CAFR. This CAFR was
awarded the Government Financial Officers Association’s Certificate
of Achievement for Excellence in Financial Reporting. (a description of
this certificate is in the Introduction Section of the CAFR)
Fiscal Year 2002 will carry on and improve with this new tradition by
including additional interesting and pertinent data, detail, formats, and
explanations to the user. However, Fiscal Year 2002 marks the end
of an era in governmental financial reporting. This is Yuma County’s
last Fiscal Year under the “Traditional Reporting Model”. The model used to
prepare financial reports, as was done historically, will cease to exist
after fiscal year 2002.
Effective Fiscal Year 2003, Yuma County will be fully phased into
preparing their Financial Statements under the guidelines as set forth
in GASB 34, 37, 38, & 39 (‘the new reporting model”).
YUMA COUNTY
"Yuma County Government is dedicated to providing customer-focused services to enhance the health, safety, well-being,
and future of our entire community."
CCoommppr rreehheennssi iivvee
AAnnnnuuaal ll FFi iinnaanncci iiaal ll RReeppoor rrt tt
For the Fiscal Year
Ended June 30, 2002
BOARD OF SUPERVISORS
Robert J. McLendon, Chairman
5th District
Lenore Loroña Stuart, V.C., 1st District
Lucy Shipp, 2nd District
Casey Prochaska, 3rd District
Marco A. (Tony) Reyes, 4th District
COUNTY ADMINISTRATOR
Wally Hill
Prepared by Yuma County Department of Financial Services
Director
Douglas W. Allen
Operations Manager
Vacant
Accountants
Gilberto Villegas
LeeAnne Rachels
Glenda McGuire
Toni Lindsay
Suzanne Peterson
Elizabeth Canela
Mary Jo McIntyre
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YUMA COUNTY
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2002
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Letter of Transmittal.................................................................................................................... i
Organizational Chart.................................................................................................................... xiv
Certificate of Achievement for Excellence in Financial Reporting............................................... xv
FINANCIAL SECTION
Independent Auditors' Report...................................................................................................... I
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types and Account
Groups and Discretely Presented Component Unit........................................... A-1 1
Combined Statement of Revenues, Expenditures, and Changes in
Fund Balances - All Governmental Fund Types and Discretely
Presented Component Unit............................................................................... A-2 4
Combined Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - All Governmental Fund Types............... A-3 5
Combined Statement of Revenues, Expenses, and Changes in
Retained Earnings - All Proprietary Fund Types............................................... A-4 7
Combined Statement of Cash Flows - All Proprietary Fund Types...................... A-5 8
Combined Statement of Changes in Net Assets -
All Investment Trust Funds................................................................................ A-6 9
Notes to the Financial Statements:
Note 1: Summary of Significant Accounting Policies........................................................ 10
Note 2: Stewardship, Compliance, and Accountability..................................................... 13
Note 3: Individual Fund Deficits........................................................................................ 13
Note 4: Deposits and Investments.................................................................................... 15
Note 5: County Treasurer's Investment Pool.................................................................... 16
Note 6: Property Taxes Receivable.................................................................................. 17
Note 7: Due from Other Governments.............................................................................. 18
Note 8: Changes in General Fixed Assets....................................................................... 18
Note 9: Bonds Payable..................................................................................................... 18
Note 10: Rural Development Loan..................................................................................... 19
Note 11: Certificates of Participation Payable.................................................................... 20
Note 12: Obligations Under Leases.................................................................................... 21
Note 13: Claims and Judgments Payable.......................................................................... 21
Note 14: Risk Management................................................................................................ 22
Note 15: Changes in Long-Term Liabilities........................................................................ 22
Note 16: Retirement Plans................................................................................................. 23
Note 17: Interfund Receivables and Payables................................................................... 25
Note 18: Construction Commitments.................................................................................. 27
Note 19: Reporting Changes.............................................................................................. 27
Note 20: Budgetary Compliance......................................................................................... 29
Note 21: Implementation of GASB Statement No. 34........................................................ 29
YUMA COUNTY
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2002
TABLE OF CONTENTS
Exhibit Page
FINANCIAL SECTION (Continued)
Combining, Individual Fund, and Acount Group Financial Statements and Schedules
General Fund:
Balance Sheet...................................................................................................... B-1 30
Statement of Revenues, Expenditures, and
Changes in Fund Balances............................................................................... B-2 31
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual ................................................................. B-3 32
Schedule of Revenues by Category - Budget and Actual.................................... B-4 34
Schedule of Expenditures by Category - Budget and Actual............................... B-5 37
Schedule of Expenditures by Function - Budget and Actual................................ B-6 39
Special Revenue Funds:
Combining Balance Sheet - All Special Revenue Funds..................................... C-1 40
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - All Special Revenue Funds................................. C-2 60
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - All Special Revenue Funds - Budget and Actual ................... C-3 80
Debt Service Funds:
Combining Balance Sheet - All Debt Service Funds............................................ D-1 126
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - All Debt Service Funds........................................ D-2 128
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - All Debt Service Funds - Budget and Actual ......................... D-3 129
Capital Projects Funds:
Combining Balance Sheet - All Capital Projects Funds....................................... E-1 133
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - All Capital Projects Funds................................... E-2 135
Combining Statement of Revenues, Expenditures, and changes in
Fund Balances - All Capital Projects Funds - Budget and Actual ..................... E-3 137
Internal Service Funds:
Combining Balance Sheet - All Internal Service Funds....................................... F-1 142
Combining Statement of Revenues, Expenses, and
Changes in Retained Earnings - All Internal Service Funds.............................. F-2 143
Combining Statement of Cash Flows - All Internal Service Funds...................... F-3 144
Trust and Agency Funds:
Combining Balance Sheet - All Trust and Agency Funds.................................... G-1 146
Combining Statement of Changes in Net Assets - All Investment Trust Funds... G-2 147
Statement of Changes in Assets and Liabilities - Agency Fund.......................... G-3 148
YUMA COUNTY
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2002
TABLE OF CONTENTS
Exhibit Page
FINANCIAL SECTION (Continued)
General Fixed Assets:
Schedule of General Fixed Assets by Source..................................................... H-1 150
Schedule of Changes in General Fixed Assets by Source.................................. H-2 151
STATISTICAL SECTION Table Page
General History:
General Government Expenditures by Function.................................................. A-1 152
General Revenues by Source.............................................................................. A-2 153
Tax Revenues by Source - General Fund......................................................... A-3 154
Licenses and Permits by Source - General Fund.............................................. A-4 154
Intergovernmental Revenue by Source - General Fund.................................... A-5 155
Charges for Services by Source - General Fund............................................... A-6 155
Fines and Forfeits by Source - General Fund................................................... A-7 156
Miscellaneous Revenues by Source - General Fund........................................ A-8 156
General Fund Changes in Fund Balance............................................................. A-9 157
Taxes and Assessments:
General Fund - Property Tax Levied and Collections (by Year Collected).......... B-1 158
General Fund - Property Tax Levied and Collections (by Year Levied)............... B-2 158
Property Tax Rates - Direct and Overlapping Governments
(General Taxing Authorities) ............................................................................. B-3 159
Property Tax Rates - Direct and Overlapping Governments
(Special District Taxing Authorities) .................................................................. B-4 160
Assessed and Estimated Actual Value of Taxable Property................................ B-5 161
Long-Term Debt:
Legal Debt Margin................................................................................................ C-1 162
Ratio of Net General Bonded Debt to Assessed Value
and Net Bonded Debt per Capita...................................................................... C-2 163
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Expenditures..................................................... C-3 164
Computation of Direct and Overlapping Debt...................................................... C-4 165
Miscellaneous:
Principal Taxpayers............................................................................................. D-1 166
Demographic Statistics:
Population and Employment - by Sector........................................................... D-2 167
Population and Employment - by City............................................................... D-3 168
County-Wide Other Demographic Statistics...................................................... D-4 169
County-Wide Building Permits, Bank Deposit, and Retail Sales.......................... D-5 170
Schedule of Insurance in Force........................................................................... D-6 171
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INTRODUCTION SECTION
The Introduction Section is intended to familiarize the reader with Yuma County’s organization
structure, nature and scope of provided services, and specifics of its operating environment. The
information in this section should provide adequate background and sufficient context to assist
the reader with the financial section of this CAFR.
The following is contained in the Introduction Section:
Letter of Transmittal i – xiii
Organization Chart xiv
Certificate of Achievement for Excellence in Financial Reporting xv
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i
FINANCIAL
SERVICES
DEPARTMENT
198 Main Street
Yuma, Arizona. 85364
Voice (928) 329-2121
FAX (928) 329-2409
Douglas Allen
October 4, 2002 Director
The Honorable Board of Supervisors
Citizens of the County of Yuma
To the Board of Supervisors and the Citizens of Yuma County, the Financial Services Department respectfully
submits Yuma County’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2002.
CAFR COMPOSITION
This report consists of management’s representations
concerning the finances of Yuma County in the form of
financial statements. The responsibility for the accuracy,
completeness, and fairness of the presented data,
including all disclosures and notes, rests with the
management of Yuma County. To the best of our
knowledge and belief, the data presented is accurate in all
material respects. It is presented in a manner designed to
fairly set forth the financial position and results of
operations of the County as measured by the financial
activity of its various funds and account groups. All
disclosures necessary to enable the reader to gain an
understanding of the County’s financial affairs have been
included.
A CAFR consists of three main sections: the Introductory
section, the Financial section, and the Statistical section.
The Introductory Section includes this transmittal letter
and an organizational chart that lists all major agencies.
This section is intended to familiarize the reader with
Yuma County’s organization structure, nature and scope
of provided services, and specifics of its operating
environment. The information in this section should
provide adequate background and sufficient context to
assist the reader with the Financial Section of this CAFR.
The Financial Section contains all financial statements
and supplemental information required to be disclosed by
United States Generally Accepted Accounting Principles
(GAAP) and Arizona State Law, as well as information on
all individual funds. Also in this section is other useful
supplementary information that is not required by GAAP
or Arizona State Law to represent a financial overview of
Yuma County. This section is parceled into four parts:
(1) Independent Auditors’ Report,
(2) General Purpose Financial Statements (GPFS)
by fund type and account groups,
(3) Notes to the Financial Statements, and
(4) Combining, Individual Fund and Account Group
Financial Statements and Schedules.
The Statistical Section is unaudited. It includes various
tables and charts that reflect financial, economic, social,
and demographic information about Yuma County for the
last ten years that is interesting and relevant to assessing
Yuma County’s financial condition. This section is
intended to assist the reader in understanding the
environment in which Yuma County operates.
OTHER REPORTING REQUIREMENTS
Yuma County is required to undergo an annual single
audit in conformity with the provisions of the Single Audit
Act of 1984, the Single Audit Act Amendment of 1996, and
U.S. Office of Management and Budget (OMB) Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations.
Information related to this single audit, including a
schedule of expenditures of federal awards, findings and
questionable costs, and an independent auditor’s report on
compliance with applicable laws, regulations, contracts, and
grants to each major program and on internal control over
compliance are included under a separate cover. The State
of Arizona also requires additional supplemental information
in the form of a report entitled “Expenditure Limitation Report”
to be completed. This report is also under a separate cover.
ii
THE REPORTING ENTITY
Yuma County, bordered by California to the West and
Mexico to the South, was founded in 1864 as one of the
four original counties established by the first Territorial
Legislature. It maintained its designated boundaries until
1983 when voters resolved to split Yuma County into
LaPaz County in the north and a “new” Yuma County in
the south encompassing 5,522 square miles. The
County seat is located in the City of Yuma.
Organization: A five-member Board of Supervisors
carries out the governmental and administrative affairs of
the County. Each member is elected from a designated
district to serve a four-year concurrent term. The Board
members collectively select the chair. The Board is
responsible for establishing the policies of the County to
provide guidance to the various County Departments,
and appointing a County Administrator who is
responsible for the general administrative and overall
operations of the various departments of the County.
The Board also furnishes budget authority to all other
County Elected Officials and the Court System.
Entity defined: Yuma County includes in its financial
statements all funds, account groups, agencies, trusts,
boards, commissions, and authorities for which the Yuma
County Board of Supervisors is financially accountable.
In accordance to Governmental Accounting Standards
Board (GASB) No. 14, The Financial Reporting Entity: financially
accountable includes, but is not limited to, selection of
governing authority, designation of management, ability
to significantly influence operations, financial
interdependence, and accountability for fiscal matters.
Various school districts and certain special districts within
Yuma County are governed independently. The financial
statements of these districts are not included in this report
except to reflect amounts held in an agency / trust capacity
by the County Treasurer.
Services provided: Yuma County provides an ample
range of governmental and community services. These
services can be divided into two categorizations: mandated
and optional. Mandated services are services that the
County is required to provide by either Federal or State
legislative bodies. Optional services are services that the
County is not required to provide, but chooses to do so for
the overall benefit of its citizens, as guided by the citizens.
Mandated: Superior and Justice Courts, Adult and
Juvenile Probation / Detention, Law Enforcement, Public
and Legal Defenders, Recording of Deeds, Indigent
health and mental health care, Immunization and disease
control, Sanitation inspections, Rabies and vector
control, Treasurer functions, Land use planning and
zoning, Building code enforcement, Elections and Voter
registration, School Superintendent, and Road
maintenance.
Optional: Libraries, Parks, Solid waste collection,
Improvement districts, new road construction, Cable TV
franchise, AIDS / cardiovascular injury prevention
programs, Flood control, Emergency management (other
than for hazardous materials), Public housing, Economic
development, and Job training.
ECONOMIC FACTORS AFFECTING FINANCIAL CONDITION
Population: At December 31, 2001, the estimated
annual population growth rate has continued to be
among the highest among the Arizona Counties. Yuma
County grew
3.28% for a total
population of
165,275. The
State of Arizona
remains to be
one of the
fastest growing
states in the
nation, growing
at a rate of
2.6% to a total population of 5,319,895. Yuma County
accounts for 3.1% of the total state population. The
graph above illustrates the State-wide population for the
largest five counties as a percentage of the total state
population.
The majority of the population of Yuma County resides in the
City of Yuma (48.8%). The Cities of San Luis and Somerton,
Town of Wellton, and all other areas (including the Foothills)
account for 9.6%,
4.6%, 1.2%, and
35.8% respectively.
Major growth
continues in the
Fortuna Foothills
area, due to an influx
of retired citizens.
Residential housing,
both site-build and
manufactured, have
increased to provide affordable housing for the residents.
Sub-divisions continue to accelerate new constructions.
Property Taxes: The last year the County raised the primary
property tax rate in fiscal year 1996-1997. The current County
rate is $2.3180 per $100 Valuation. Primary net assessed
valuations have increased 25.76% since that time.
60.0%
16.4%
3.3%
3.5%
3.1%
13.7%
{per AZ Department of Economic Security}
Maricopa
Pima
Yavapai
Pinal
Yuma All Others (10)
State of Arizona
Percentage of Population by County
Estimates as of June 30,2001
9.6%
4.6%
1.2%
48.8%
35.8%
{per AZ Department of Economic Security}
San Luis
Somerton
Wellton Yuma Foothills and all
other
Yuma County
Percentage of Population by City
Estimates as of June 30,2001
iii
Employment: The Seasonally Adjusted
Unemployment rate is down to 23.8% compared to
24.2% one year ago. The graph below shows Yuma
County’s seasonally adjusted unemployment rate along
with the State of Arizona’s for the month of July from
1989 to 2002.
The net change in Employment for Yuma County compared
to last year was an additional 550. The State of Arizona
experienced a decrease of 43,200. The chart below displays
the jobs sector and the net change for Yuma County and the
State of Arizona. The source is Arizona Department of
Economic Security.
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
{per Arizona Department of Economic Security}
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Yuma County State of AZ
Seasonally Adjusted Unemployment Rate
14 Year History
Retail Sales: Retail Sales grew at 1.3% this fiscal year, which is down from last years growth rate of 4.3%. The State
of Arizona has experience a similar slump. State- wide retail sales have increased by 0.4% this fiscal year, which is
down from last year’s growth rate of 5.2%. This is the second consecutive fiscal year with lower rates of growth. Below
are two charts and graphs showing retail sales for Yuma County and the State of Arizona for both the fiscal and
calendar year.
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
{per Arizona Department of Revenue}
0%
2%
4%
6%
8%
10%
12%
14%
Yuma County State Yuma Average State Average
Percentage Growth Retail Sales
By FISCAL Year
15 Year History
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
{per Arizona Department of Revenue}
0%
2%
4%
6%
8%
10%
12%
14%
Yuma County State Yuma Average State Average
Percentage Growth Retail Sales
By CALENDAR Year
15 Year History
Yuma State of
Sector County Arizona
Mining N/A (900)
Construction 25 (8,600)
Manufacturing (400) (13,600)
Trans., Comm., Public Utilities 200 (6,400)
Trade (125) 5,900
Finance, Insurance, Real Estate 50 (2,100)
Services 675 (6,600)
All Government 125 (10,900)
Net Change in Employment 550 (43,200)
Calendar Yuma County State of Arizona Fiscal Yuma County State of Arizona
Year Amount % Change Amount % Change Year Amount % Change Amount % Change
2001 $866,261,447 2.7% $38,456,271,995 2.2% 2002 $866,972,231 1.3% $38,432,859,974 0.4%
2000 843,250,996 7.8% 37,639,931,172 8.8% 2001 855,556,940 4.3% 38,282,337,115 5.2%
1999 782,030,227 5.7% 34,582,380,948 9.6% 2000 820,348,220 7.5% 36,403,861,655 10.4%
1998 739,769,407 7.5% 31,563,559,590 7.5% 1999 762,778,512 6.0% 32,964,475,378 8.2%
1997 688,378,023 5.9% 29,364,377,416 6.5% 1998 719,400,081 7.1% 30,469,141,007 7.8%
1996 650,113,599 3.8% 27,571,721,696 6.0% 1997 671,820,801 4.1% 28,256,623,024 5.0%
1995 626,043,128 6.0% 26,002,669,155 9.3% 1996 645,254,552 6.1% 26,909,647,587 7.4%
1994 590,452,004 10.2% 23,784,990,854 13.1% 1995 608,305,273 7.4% 25,062,590,460 11.8%
1993 535,681,402 2.6% 21,021,469,489 8.4% 1994 566,404,754 7.4% 22,416,908,402 11.1%
1992 521,932,759 6.7% 19,400,097,470 7.4% 1993 527,406,023 3.3% 20,172,611,271 7.9%
1991 489,188,673 6.3% 18,068,699,475 2.3% 1992 510,415,994 8.9% 18,695,158,915 5.0%
1990 460,204,868 3.4% 17,666,879,135 3.4% 1991 468,866,928 4.2% 17,797,586,514 2.6%
1989 445,170,742 6.4% 17,084,580,160 6.6% 1990 450,127,791 2.9% 17,344,686,335 4.2%
1988 418,521,285 10.2% 16,026,321,844 4.1% 1989 437,650,158 9.4% 16,646,682,349 5.7%
1987 379,668,002 8.7% 15,400,013,749 5.3% 1988 400,023,822 10.3% 15,754,847,683 4.8%
iv
FINANCIAL INFORMATION
Accounting Policy: Yuma County maintains accounts
in accordance to the principle of fund accounting to
ensure that limitations and restrictions on the County’s
available resources are observed and adhered to. Fund
accounting classifies resources into funds or account
groups with respect to the intended activities or
objectives specified by those resources for accounting
controls and financial reporting purposes. Each fund is
an independent fiscal and accounting entity, and its
operations are accounted for in a separate set of self-balancing
accounts that comprise of assets, liabilities,
fund equity, revenues, and expenditures or expenses.
Account groups are reporting mechanisms used to
compile certain assets and liabilities of the governmental
funds that are not directly recorded in those funds.
There is no limit to the number of funds that a
government may establish and maintain for accounting
and financial reporting. A generally practiced
governmental accounting guideline is that a government
should use the smallest number of individual funds as
possible, consistent with its particular circumstances, and
that individual funds are closed when its intended
purpose is no longer operating.
A description of the fund categories used by the County
follows.
Governmental Funds: These funds are used to account
for all of Yuma County’s expendable financial resources,
except for those reported in the Internal Service funds.
The measurement focus is on determination of financial
position rather than determination of income. The
modified accrual basis of accounting is used for these
funds. The County’s General, Special Revenue, Debt
Service, and Capital Project funds are all classified as
this fund type.
General Fund: The General Fund is the primary
operating fund. It accounts for all financial resources of
Yuma County, except for those that are required, either
by rule of statue or GAAP, to be accounted for
elsewhere, or chosen to do so for internal tracking
purposes.
Special Revenue Funds: Special Revenue Funds
account for unique revenue sources that are legally
restricted by statute, ordinance, or other specific
requirements to finance specific functions or activities.
Yuma County has exercised the approach of establishing
a different special revenue fund for each unique funding
source.
Debt Service Funds: These funds are used to account for
the resources that are accumulated for the payment of
interest, principal, and related costs on general long-term
debt, special assessments, and capital leases. This fund
type is not used to account for the outstanding debt itself;
that is maintained in the General Long-Term Debt account
group.
Capital Projects Funds: Yuma County uses Capital
Project Funds to account for the acquisition and
construction of major capital activities, and establishes a
separate fund for each individual construction project or
revenue source. The majority of these funds compositions
have similar imposed restrictions to that of the Special
Revenue Funds, but due to their capital nature they are
accounted for as Capital Projects Funds.
Internal Service Funds: These funds are used to account
for the County’s ongoing activities that can be viewed as
similar to the private sector. Measurement focus is on
determination of income, financial position, and changes in
financial position. The full accrual basis of accounting is
used for these funds.
Fiduciary Funds: These funds are used to account for
assets held by the County in a trustee or agency capacity.
Fiduciary funds account for assets held by the County
Treasurer on behalf of others and are either Investment
Trust funds or Agency funds which are custodial in nature
and do not involve measurement of results of operations.
The accrual and modified accrual basis of accounting is
used for these funds.
Internal Control: In regards to accounting, internal
controls are designed to provide reasonable (not absolute)
assurance that:
(1) Assets are safeguarded against loss from
unauthorized use or disposition and
(2) The reliability of financial records for preparing
financial statements and maintaining
accountability for assets.
Implemented Internal control mechanisms should
recognize that the cost for maintaining control procedures
should not exceed the benefit derived as a result from their
adherence. The evaluation of costs and benefits requires
estimates and judgments by County management. It
should also be recognized that all internal control policies
and procedures are inherently vulnerable to conspiracy,
collusion, and deliberate management override.
v
BUDGETARY CONTROLS
Yuma County complies with Arizona State Statute by
operating under a balanced budget and appropriating all
available resources. Yuma County also stays within
State regulated levy and expenditure limitations. With
this principle, the measure of financial performance is
monitored by the realization of estimated revenues and
abiding by the appropriations during the budget year.
Budgetary Basis: Yuma County prepares its budget
with the accounting principles consistent with its financial
reporting methods. Revenues are recognized when they
are both available and measurable. Expenditure
accruals are set up to 60 days after the fiscal year end.
Open encumbrances lapse at fiscal year end.
Budget Administration: Yuma County administration
monitors the County’s Budget at the fund level for Special
Revenue, Debt Service, and Internal Service Funds. The
General Fund and Capital Project Funds are monitored at
the Department and Project Level respectively. The
budget is modified throughout the year as additional
resources become available or anticipated resources
dissipate, if permitted under A.R.S. 42-17105 and 42-
17106. This methodology ensures that all available
resources are accounted for with appropriate budgetary
controls, and only available resources are disbursed or
encumbered.
GENERAL OPERATIONS
The Combined Statement of Revenues, Expenditures, and Changes in
Fund Balances – All Governmental Fund Types and Discretely Presented
Component Unit is the primary operating statement of Yuma
County. This statement presents the revenues,
expenditures, other financing sources and uses, and the
amount available for the next fiscal year (fund balance).
However, due to the nature of a plethora of over 129
individual funds amalgamating into 4 fund types,
additional supplemental schedules entitled Combining
Statement of Revenues, Expenditures, and Changes in Fund Balances
have also been included for each fund type to present
each and every individual fund’s activities. The following
is a brief analysis of the expendable resources of the
Governmental Funds (General, Special Revenue, Debt
Service, and Capital Projects).
Revenues: Yuma County Governmental fund revenues
totaled $104,835,331 in fiscal year 2001-2002, which is
an increase of $5,862,723 or 5.9% over the previous
year. The graph to the right shows the percentage of
overall revenue attributed to each revenue source as a
portion of the total. Yuma County’s major revenue
sources are Taxes and Intergovernmental, which
account for 44.0% and 44.6% of the Governmental
Funds’ Revenue, respectively. When combined they
account for 88.6% of Yuma County’s governmental fund
revenue stream. The following chart displays the
amounts of revenue by source compared to previous
year.
44.0%
0.1%
1.5%
44.6%
4.9%
1.8%
2.2%
0.3%
0.8%
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Investment income
Rents
Miscellaneous
Governmental Funds - Revenue Sources
Fiscal Year June 30, 2002
Total Governmental Funds % of Total Increase / (Decrease)
Revenue Source 00-01 01-02 00-01 01-02 $ %
Taxes $40,406,324 $46,079,625 40.8% 43.9% $5,673,301 14.0%
Special Assessments 199,485 147,601 0.2% 0.1% (51,884) -26.0%
Licenses and Permits 1,212,804 1,528,945 1.2% 1.5% 316,141 26.1%
Intergovernmental 45,448,504 46,715,279 45.9% 44.6% 1,266,775 2.8%
Charges for Services 4,439,316 5,086,466 4.5% 4.9% 647,150 14.6%
Fines and Forfeits 1,848,099 1,837,947 1.9% 1.7% (10,152) -0.5%
Investment Income 4,126,689 2,290,392 4.2% 2.2% (1,836,297) -44.5%
Rents 242,443 303,683 0.2% 0.3% 61,240 25.3%
Miscellaneous 1,048,944 845,393 1.1% 0.8% (203,551) -19.4%
Total $98,972,608 $104,835,331 100.0% 100.0% $5,862,723 5.9%
vi
Tax Revenue: The $5,673,301 increase in Tax
Revenue consists of: an increase of $884,482 or 3.8% in
the General Fund, an increase of $4,788,701 or 27.8% in
the Special Revenue Funds, and an increase of $118 in
the Debt Service Funds. The chart to the right shows this
fiscal year compared to last fiscal year for the fund types
that receive tax revenues.
Increase in Tax Revenues: The increase in the
General Fund $884,482 or 3.8% was due to an increase
in collections of the County Sales Tax and Payments in
Lieu of Taxes $310,534 or 4.2% and $269,043 or 9.6%
respectively. The increase in the Special Revenue
Funds $4,788,701 or 27.8% was due to an increase in
the collections of the Jail District Sales Tax and the first
full year of collections for the Capital Projects Sales
Tax, $312,429 or 4.2% and $3,965,072 or 107.6%
respectively. To the right is a chart showing this fiscal
year compared to last fiscal year for the three Yuma
County Sales Taxes.
To the Right is a graph and below is a chart that both display an
eight year history of Yuma County’s Sales Taxes for the General
Fund, Jail District and Capital Projects. Each Sales tax is one
half of one percent (0.50%). The Jail District Sales Tax was
voter approved simultaneously with the establishment of the Jail
District on May 15, 1995 to finance the general operations of
Yuma County’s Jail District. This tax collection authority expires
in 2008. The Capital Projects Sales Tax was voter approved to
finance Capital Projects on September 12, 2000, effective on
January 1, 2001. The projects that are part of this tax are: New
Juvenile Detention & Administration Facility, New Justice Center,
Old Courthouse remodeling, and the ASH Highway Project. This
tax expires at the maximum collection amount of $57,564,506.
This amount will be offset by any other funding sources that the
County acquires to apply to these
projects.
1995 1996 1997 1998 1999 2000 2001 2002
0
1
2
3
4
5
6
7
8
9
Millions
General Fund Jail District Capital Project
Yuma County Sales Tax
Eight Year History
Intergovernmental Revenue: The $1,266,775
increase in Intergovernmental Revenue consists of: an
increase of $1,388,058 or 9.8% in the General Fund, an
increase of $1,169,714 or 3.9% in the Special Revenue
Funds, and a decrease of ($1,290,997) or –79.2% in the
Capital Project Funds.
Total Governmental Funds Increase / (Decrease)
Tax Revenue 00-01 01-02 $ %
General Fund $23,186,808 $24,071,290 $884,482 3.8%
Special Revenue Funds 17,219,468 22,008,169 4,788,701 27.8%
Debt Service Funds 48 166 118 245.8%
Total Tax Revenue $40,406,324 $46,079,625 $5,673,301 14.0%
Total Governmental
Funds Increase / (Decrease)
County Sales Tax 00-01 01-02 $ %
General Fund $7,402,138 $7,712,672 $310,534 4.2%
Jail District - Special Revenue 7,397,292 7,709,721 312,429 4.2%
Capital Projects - Special
Revenue 3,685,438 7,650,510 3,965,072 107.6%
Total County Sales Taxes $18,484,868 $23,072,903 $4,588,035 24.8%
Fiscal General Fund Jail District Capital Projects
Year Amount % Change Amount % Change Amount % Change
2002 $ 7,712,672 4.20% $ 7,709,721 4.22% $ 7,650,510 107.59%
2001 7,402,138 5.54% 7,397,292 5.65% 3,685,438 N/A
2000 7,013,645 4.94% 7,001,691 5.13% - N/A
1999 6,683,443 5.93% 6,660,214 5.75% - N/A
1998 6,309,075 10.54% 6,298,303 11.90% - N/A
1997 5,707,547 2.74% 5,628,743 107.42% - N/A
1996 5,555,514 5.56% 2,713,753 N/A - N/A
1995 5,262,814 N/A - N/A - N/A
Total Governmental Funds Increase / (Decrease)
Intergovernmental 00-01 01-02 $ %
General Fund $14,124,514 $15,512,572 $1,388,058 9.8%
Special Revenue Funds 29,693,930 30,863,644 1,169,714 3.9%
Capital Project Funds 1,630,060 339,063 (1,290,997) -79.2%
Total Tax Revenue $45,448,504 $46,715,279 $1,266,775 2.8%
vii
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
0
100
200
300
400
500
600
700
Millions Primary Secondary
Yuma County - Total Net Assessed Valuations
Ten Year History
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
Primary Secondary Average
Yuma County - Change in Net Assessed Valuations
Ten Year History
The increase in Intergovernmental Revenues: The General
Fund’s main intergovernmental revenue increase is the State
Shared Sales Taxes ($837,771 or 7.1%) and the Federal PILT –
“Payment in Lieu of Tax ($455,180 or 43.1%) The Special
Revenue Funds increase was due to a slight increase in
operating grants. Last fiscal year, the Capital Projects
Funds received $1,630,060 in grant revenue for one-time
construction. There were $339,063 in grant revenues this
fiscal year, which accounts for the decrease of
$1,290,997. To the right is a chart showing the major
intergovernmental revenues for the General Fund
compared to last fiscal year. Below to the left is an eight-year
history of all intergovernmental revenue received by
all Governmental Fund types. Below to the right is a graph showing
an eight-year history of the main intergovernmental revenue sources
for the General Fund.
1995 1996 1997 1998 1999 2000 2001 2002
0
5
10
15
20
25
30
Millions
General Fund Special Revenue Capital Projects
Yuma County - Intergovernmental
Eight Year History
1995 1996 1997 1998 1999 2000 2001 2002
0
5
10
15
Millions
State Sales Tax PILT All Others
Yuma County General Fund - Intergovernmental
Eight Year History
Assessed Valuation: In fiscal year 2001-2002, the net
primary assessed valuation increased by 8.60% to $596.5
million and the net secondary assessed valuation increased
8.31% to $615 .9million. Both net primary and secondary
assessed valuations increased by a higher percentage than
the rest of the State of Arizona which had an increase of
7.23% and 6.84% for net primary and secondary assessed
valuations, respectively. The primary assessed valuation is
a legislated valuation, which provides taxes for normal
operation (General Fund). The secondary assessed valuation
is a better indicator of market conditions since it is not
restricted by statute and is the basis for the Flood Control
District and Library District levies. Improvement Districts are
generally levied and assessed using the acreage method,
but may use the valuation method if it is more applicable to
the circumstance. To the right is a chart showing a ten (10)
year history of Yuma County’s net primary and secondary
assessed valuations in total amount and percentage change.
Below is a graph for Yuma County’s Net Assessed
Valuations and a graph displaying the percentage change
over the last ten (10) years for both Primary and Secondary
Assessments.
Total General Fund Increase / (Decrease)
Intergovernmental 00-01 01-02 $ %
State Sales Tax $11,812,111 $12,649,882 $837,771 7.1%
Federal PILT 1,055,013 1,510,193 455,180 43.1%
All Others 1,257,390 992,900 (264,490) -21.0%
Total Tax Revenue $14,124,514 $15,152,975 $1,028,461 7.3%
Tax Primary Secondary
Year Amount % Change Amount % Change
2002 596,500,117 8.60% 615,920,229 8.31%
2001 549,270,133 2.35% 568,655,704 2.86%
2000 536,651,463 8.41% 552,869,545 7.68%
1999 495,017,496 4.00% 513,437,968 4.79%
1998 475,984,451 3.71% 489,965,133 5.64%
1997 458,941,869 5.07% 463,785,188 4.70%
1996 436,776,654 3.32% 442,957,327 2.26%
1995 422,724,003 4.50% 433,158,439 4.54%
1994 404,507,877 2.95% 414,334,779 3.73%
1993 392,930,984 1.53% 399,435,055 0.85%
viii
Tax Collections: Current real estate and personal property tax collections (fiscal year 2001-2002) were 95.79% of
the General Fund tax levy, which is up from 93.81% of last fiscal year (2000-2001). This figure only recognizes taxes
collected in the fiscal year in which the taxes were levied; it does not recognize taxes collected in subsequent fiscal
years.
Total Tax Collected for fiscal year 2000-2001 are at 96.34%, which is up from 95.76% of the prior fiscal year (1999-
2000). This percentage recognizes all taxes collected including those collected in subsequent fiscal years.
Below is a chart representing an eight-year history of each year’s current year levy compared to the current year’s
collections, and taxes collected in subsequent years.
General Current Percent of Collected in Total Percent of Total Outstanding Percent of
Fiscal Tax Tax Levy Subsequent Tax Tax Collected Delinquent Delinquent Taxes
Year Levy Collection Collected Year Collections to Tax Levy Taxes to Tax Levy
1994-95 $ 7,823,982 $ 7,276,858 93.01% $ 368,726 $ 7,645,584 97.72% $ 178,398 2.28%
1995-96 8,116,301 7,603,629 93.68% 328,639 7,932,268 97.73% 184,033 2.27%
1996-97 8,386,116 7,630,515 90.99% 284,500 7,915,015 94.38% 471,101 5.62%
1997-98 10,638,276 9,818,600 92.30% 239,885 10,058,485 94.55% 579,791 5.45%
1998-99 11,033,320 10,230,377 92.72% 245,419 10,475,796 94.95% 557,524 5.05%
1999-00 11,474,506 10,712,424 93.36% 275,465 10,987,889 95.76% 486,617 4.24%
2000-01 12,439,581 11,670,056 93.81% 324,751 11,994,807 96.42% 444,774 3.58%
2001-02 12,732,082 12,196,378 95.79% - 12,196,378 95.79% 535,704 4.21%
Expenditures: Yuma County Governmental fund
expenditures totaled $98,458,762 in fiscal year 2001-
2002, which is an increase of $12,663,731 or 14.8%
over the last year. The largest increase in expenditures
was in Capital Outlay ($7,515,698 or 64.8%) due to the
very near completion of the Juvenile Detention Facility.
General Government and Public Safety increased by
$1,643,834 or 7.1% and $2,557,095 or 12.0%
respectively. The graph to the right displays the fiscal
year 2001-2002 portions of each Expenditure Function
for all Governmental fund types combined. The chart
below displays the amounts of expenditures by function
compared to last year:
25.2%
24.2%
6.1%
0.6%
11.6%
3.1%
3.0%
2.4%
19.4%
4.5%
General Government
Public Safety
Highways and Streets
Sanitation
Health
Welfare
Culture and Recreation
Education
Capital Outlay
Debt Service
Governmental Funds - Expenditures by Function
Fiscal Year June 30, 2002
Total Governmental Funds % of Total Increase / (Decrease)
Function 00-01 01-02 00-01 01-02 $ %
General Government $23,135,695 $24,779,529 27.0% 25.2% $1,643,834 7.1%
Public Safety 21,251,248 23,808,343 24.8% 24.2% 2,557,095 12.0%
Highways and Streets 5,811,202 5,966,113 6.8% 6.1% 154,911 2.7%
Sanitation 720,636 582,877 0.8% 0.6% (137,759) -19.1%
Health 11,335,539 11,378,788 13.2% 11.6% 43,249 0.4%
Welfare 2,373,329 3,075,574 2.8% 3.1% 702,245 29.6%
Culture and Recreation 2,735,769 2,975,344 3.2% 3.0% 239,575 8.8%
Education 3,254,066 2,376,605 3.8% 2.4% (877,461) -27.0%
Capital Outlay 11,591,877 19,107,575 13.5% 19.4% 7,515,698 64.8%
Debt Service 3,585,670 4,408,014 4.2% 4.5% 822,344 22.9%
Total $85,795,031 $98,458,762 100.0% 100.0% $12,663,731 14.8%
ix
General Fund: Yuma County operates its General Fund
under a balanced budget. Realizing estimated revenues
and staying within appropriated expenditures through the
close of the fiscal year demonstrate a measure of
prudent fiscal performance. No Agencies overspent their
General Fund appropriations this fiscal year.
The chart below shows that for fiscal year 2001-2002, General
Fund Revenue and Transfers In totaled $44,795,005, which is
an increase of 6.2% from last year. General Fund
Expenditures and Transfers Out totaled $43,275,623, which is
an increase of 2.5% from last year. The net of General Fund
Revenue and Transfers In and General Fund Expenditures
and Transfers Out was an increase to fund balance (Operating
Income) in the amount of $1,519,382.
General Fund Increase / (Decrease)
00-01 01-02 $ %
Revenues $ 42,028,592 $ 44,569,167 $ 2,540,575 6.0%
Transfers In 154,579 225,838 71,259 46.1%
Total Revenues & Transfers In 42,183,171 44,795,005 2,611,834 6.2%
Expenditures 33,153,514 33,858,846 705,332 2.1%
Transfers Out 9,054,621 9,416,777 362,156 4.0%
Total Expenditures & Transfers Out 42,208,135 43,275,623 1,067,488 2.5%
Excess of Revenues & Transfers In Over / (Under)
Expenditures & Transfers Out $ (24,964) $ 1,519,382 $ 1,544,346 N/A
Revenues: The graph to the right show the General
Fund’s major revenue sources for fiscal year 2001-2002
as proportionate to the entire General Fund’s revenue
sources. State Shared Sales Tax, Property Tax, County
Sales Tax, and Auto in Lieu of Tax combined account for
80.70% of the total General Fund Revenue.
The chart below lists out the General Fund’s major
revenue sources for fiscal year 2001-2002 compared to
last fiscal year. The largest increases were the State
Sales Tax ($837,771), Federal PILT – Payment in Lieu of
Tax ($455,180), Property Taxes ($353,582), and County
Sales Tax ($310,534). Justice of the Peace Fines &
Fees and Superior Court & Attorney Fees decreased
$75,021 and $16,563 respectively.
28.4%
28.1%
6.9% 17.3%
3.4%
2.0%
2.0%
1.2%
1.0%
9.6%
State Sales Tax
Property Taxes
County Sales Tax
Auto In Lieu Tax
Federal PILT
Building Permits & Plan Check Fees
Jp Fines & Fees
State Lottery Revenue
Superior Court & Attorney Fees
All Other Sources
General Fund Major Revenue Sources
Fiscal Year June 30, 2002
General Fund Increase / (Decrease)
General Fund Major Revenue Sources 00-01 01-02 $ %
State Sales Tax $ 11,812,111 $ 12,649,882 $ 837,771 7.1%
Property Taxes 12,177,500 12,531,082 353,582 2.9%
County Sales Tax 7,402,138 7,712,672 310,534 4.2%
Auto In Lieu Tax 2,815,117 3,084,160 269,043 9.6%
Federal PILT 1,055,013 1,510,193 455,180 43.1%
Building Permits & Plan Check Fees 629,738 899,602 269,864 42.9%
Justice of the Peace Fines & Fees 972,708 897,687 (75,021) -7.7%
State Lottery Revenue 550,035 550,035 - 0.0%
Superior Court & Attorney Fees 454,078 437,515 (16,563) -3.6%
All Other Sources 4,160,154 4,296,339 136,185 3.3%
Total General Fund Revenue $ 42,028,592 $ 44,569,167 $ 2,540,575 6.0%
x
Expenditures & Transfers Out: The graph to the right
shows the General Fund’s Expenditures and Operating
Transfers Out by Function for fiscal year 2001-2002 as a
proportion to the General Fund’s total Uses. General
Government, Health, and Operating Transfer Out are the
major functions of the General Fund and account for 84.2%
of the General Fund’s operations.
Expenditures: The chart below lists out the General Fund’s
expenditures by function for fiscal year 2001-2002 compared
to last year. The decrease in Health is mainly attributed to
two factors: One is that effective October 1, 2001 the Medical
Eligibility personnel were transitioned to State employees.
That was a savings of $461,215 from last year. The second
and offset to that is there was an increase in AHCCCS Long-term
care for $780,380. The increase
in General Government and Public
Safety was due to increased court
costs and employee related costs.
The General Fund expended
$293,636 less in Capital Outlay this
fiscal year. Most Capital needs for the
Courts are anticipated to be met in the
Capital Improvement Fund through
the Capital Project Sales Tax, and
$118,209 was expended less in Debt
Service (Capital Leases) than last
fiscal year. The functions of
Sanitation and Education were
comparable last year.
45.8%
12.8%
1.0%
16.5%
0.0%
0.5%
1.6%
21.8%
General Government
Public Safety
Sanitation
Health
Culture and Recreation
Education
Capital Outlay
Debt Service
Transfers Out
General Fund - Total Uses by Function
Fiscal Year June 30, 2002
Transfers Out: The graph to the right shows the General
Fund’s Operating Transfer Out for fiscal year 2001-2002 as a
proportion to the General Fund’s total Transfers Out. The
major annual transfer is to the Jail District for the Statutorily
required Maintenance of Effort Payment. For fiscal year 2001-
2002 the Maintenance of Effort Payment was $5,167,467,
which is an increase of 2.3% from last year. The two “D/S”
payments are for Debt Service requirements in relation to the
Adult Probation Building and the Health Building. The
transfers for Rabies Control and Public Health are annual
transfers to Special Revenue Funds, and the transfer for
Victim Services is a grant match. The transfers for the Law
Library and Other are one time in nature and should not be
considered reoccurring.
$5,167,467
$1,502,470
$398,902 $500,000
$527,740
$978,971
$200,242
$45,440
$38,739
$56,806
Jail District
Capital Improvements
Automation & Technology
D/S Adult Probation
D/S Health Building
Publice Health
Rabies Control
Victim's Services
Law Library
Other
General Fund - Transfers Out
Fiscal Year June 30, 2002
Cash & Fund Balance: The General Fund maintained
adequate cash and fund balance levels. At the close of fiscal
year 2001-2002 the Cash balance was $12,477,233 and the
Fund Balance was $13,961,871. That is an increase,
compared to last year, of $2,304,522 or 22.7% for Cash; and
$1,519,382 or 11.1% for Fund Balance.
The graph to the right illustrates Yuma County’s historically
volatile Cash and Fund Balances with a seventeen (17) year
history of year-end Cash and Fund Balances.
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
(5)
0
5
10
15
Millions
Cash Balance Fund Balance
Yuma County - Year End Cash & Fund Balance
Seventeen Year History
General Fund Increase / (Decrease)
General Fund Expenditures by
Function 00-01 01-02 $ %
General Government $ 18,912,814 $ 19,820,475 $ 907,661 4.8%
Public Safety 5,026,652 5,521,875 495,223 9.8%
Sanitation 420,546 432,529 11,983 2.8%
Health 7,431,812 7,142,699 (289,113) -3.9%
Culture and Recreation 11,020 16,778 5,758 52.3%
Education 237,713 223,378 (14,335) -6.0%
Capital Outlay 994,748 701,112 (293,636) -29.5%
Debt Service 118,209 - (118,209) -100.0%
Total General Fund Expenditures $ 33,153,514 $ 33,858,846 $ 705,332 2.1%
xi
GENERAL FIXED ASSETS
Despite their non-financial character, users of financial
statements may have an interest in fixed assets. The
General Fixed Asset Account Group contain those fixed
assets that the County uses in the performance of general
governmental functions that are accounted for in the
General Fund and Special Revenue Funds, along with the
capitalized construction acquired through the Capital
Projects Funds. The Internal Service Funds fixed assets
are not present in this account group as they are
maintained in the respective Internal Service Funds.
Yuma County does not record the value of certain
infrastructure assets such as roads, bridges, street
lighting, or the land underneath them. For fiscal year
2001-2002, the general fixed asset account group totaled
$101 million. This cost represents the original cost of
each individual asset and could be substantially less or
more for individual item values, as real estate tends to
appreciate and computers tend to depreciate. Yuma
County’s general fixed asset account group does not
record the cost recovery mechanism known as
depreciation since these fixed assets are recorded as
expenditures when purchased.
Effective fiscal year 2001-2002, Yuma County modified
the capitalization threshold of fixed assets for financial
reporting purposes. The new capitalization threshold for
Machinery & Equipment is $5,000 and $10,000 for
Building, Land, and Improvements other than Buildings. This
change in Capitalization threshold reduced Yuma County’s
opening balance for Machinery & Equipment in the amount of
$5,179,558 and the quantity of assets by 2,535. Building,
Land, and Improvements other than Building had a total Fixed
Asset reduction of 164 in the amount of $624,523. This
resulted in the grand total of Fixed Assets to be reduced by
2,699 or 68.5% in quantity and $5,804,111 or 5.5% in value.
Below are two charts showing the reduction in Fixed Assets.
The first chart shows the reduction in value and the second
shows the reduction in population. Together they show that
68.5% of the population had accounted for only 5.5% of the
value.
5.5%
94.5%
Value
68.5%
31.5%
Quantity
Below New Thresehold Remains Capitalized
General Fixed Assets
Impact of New Thresehold
RISK MANAGEMENT
Yuma County is exposed to various risks of loss related
to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural
disasters. These risks of loss are accounted for and
financed by the following described insurance coverage
and internal risk management programs.
The Arizona Counties Workers’ Compensation Pool is a
public entity risk pool currently composed of 11 member
counties. The pool provides member counties with
workers’ compensation coverage, as required by law,
and risk management services. Yuma County is
responsible for paying a premium, based on an
experience rating formula that allocates pool
expenditures and liabilities among the members.
The Arizona Counties Workers’ Compensation Pool
receives an independent audit annually and an audit by
the Arizona Department of Insurance triennially. Both
pools accrue liabilities for losses that have been
incurred but not reported. These liabilities are
determined annually based on an independent actuarial
valuation.
Yuma County maintains a limited risk management program
for general liability and property damage to finance uninsured
risks of loss up to $250,000 for each occurrence. The County
purchases commercial insurance to cover claims in excess of
this amount up to $15,000,000 for each occurrence and
$15,000,000 in aggregate for each year. Yuma County
retains liability for covered losses that exceed these limits.
Settled claims resulting from these risks have not exceeded
insurance coverage in any of the past three fiscal years.
Effective January 1, 2000, the Employee Benefit Fund (an
Internal Service Fund) accounts for the financing of the Yuma
County Employee Benefit Trust (YCEBT) which is a self
funded benefit plan established to provide certain health
benefits (comprehensive major medical) to eligible employees
and their dependents. Under this program, the Fund
provides coverage up to a lifetime maximum of $1,000,000
per individual. The uninsured risk of loss per individual is
$100,000 per plan year (January 1 through December 31) not to
exceed an annual aggregate of $2,939,860 (based on
assumed enrollment during this plan year; aggregate claims
liability limit only, does not include fixed expenses associated
with the YCEBT). The Fund purchases commercial
insurance (reinsurance) for claims in excess of this coverage.
xii
DEBT ADMINISTRATION
Yuma County has no General Obligation debt
outstanding. All projects since 1996 were funded through
the use of Certificates of Participation (COP). This is a
lease / purchase type of capital financing. The obligations
listed under COP does not represent legal debt to the
County, they are subject to annual appropriation to meet
payments. Yuma County has four (4) Series, 1998
(Health Building), 1999 (Adult Probation Building), and
2001 A & B (Juvenile Facility and Superior Court
Improvements). The total outstanding amount for all
Certificates of Participation is $25,805,000.
Yuma County also has revenue bonds principle
outstanding in the amount of $14,460,000 that was issued
in 1996 for the Jail District. The proceeds were used to
expand Yuma County’s detention facilities. These
obligations are secured by the pledge of net revenues
from County Maintenance of Effort Payments and
Transaction Privilege (Sales) tax approved by Yuma
County voters on May 16, 1995. This bond resolution also
requires the County to use a portion of the proceeds to
establish and maintain a Bond Reserve Fund, with which the
County has been complying with by placing $950,000 of the
proceeds in an escrow account under the custody of a trustee.
Yuma County currently administers three (3) Improvement
District Special Assessment bonds (Del Sur, Donovan Estates,
and El Prado) with an aggregate total outstanding principle of
$616,930. Special Assessment Bonds are secured by
pledges of revenue from special assessments levied against
the benefiting property owners. The proceeds of these bonds
were used for construction purposes. These Improvement
Districts are accounted for in the Capital Projects and are
considered Blended Component Units for financial reporting
purposes. However, each is a separate legal entity. The
Yuma County Board of Supervisors sits as the Board of
Directors of Improvement Districts and the County is
responsible for prudent fiscal management of these districts.
Below is a chart showing the Outstanding Principal for all
Long-Term bonds and loans of Yuma County.
General Obligation Bonds: General Obligation are
secured by the issuer’s general taxing power. They are
subject to a two tiered constitutional debt limit. Arizona
Counties may issue general obligation bonds up to 6% of
the jurisdiction’s net secondary assessed valuation without
voter approval. Voter approval is required before issuing
over the 6%. With voter approval, counties may issue
general obligation bonds up to 15% of the jurisdiction’s net
secondary assessed valuation. (Arizona Constitution,
Article 9, Section 8).
As referenced in ARS, Title 35, Chapter 3, the bond security of
GO bonds is the taxing power of the state or local government.
The County is authorized to levy property taxes or other
unrestricted revenue streams, such as sales taxes to pay the
general obligation bond payments (principal and interest).
Due to this security, interest rates on GO bonds are generally
lower than other public securities. The following table
represents the County’s outstanding general obligation
indebtedness with respect to its constitutional general
obligation debt limitation.
Constitutional General Obligation Bonding Capacity Constitutional General Obligation Bonding Capacity
For Fiscal Year Ending June 30, 2002 For Fiscal Year Ending June 30, 2002
Available without Voter Approval Subject to Voter Approval
2001-2002 Secondary Assessed Valuation $568,655,704 2001-2002 Secondary Assessed Valuation $568,655,704
6% of Secondary Assessed Valuation 34,119,342 15% of Secondary Assessed Valuation 85,298,356
Less: GO Bonded Debt Outstanding 0 Less: GO Bonded Debt Outstanding 0
Plus: GO Debt Service Fund Balance 0 Plus: GO Debt Service Fund Balance 0
Unused 6% Borrowing Capacity $34,119,342 Unused 15% Borrowing Capacity $85,298,356
Balance Balance
July 1, 2001 Additions Reductions June 30, 2002
Revenue bonds - Jail District $ 15,535,000 - $1,075,000 $ 14,460,000
Certificates of participation:
1998 - Health Building 3,940,000 - 350,000 3,590,000
1999 - Adult Probation 3,725,000 - 340,000 3,385,000
2001A - Capital Project Sales Tax 16,640,000 - 200,000 16,440,000
2001A - Capital Project Sales Tax 2,420,000 - 30,000 2,390,000
Total Certificates of participation payable 26,725,000 - 920,000 25,805,000
Special assessment bonds payable 631,368 $ 76,662 91,100 616,930
Rural Development Loan 220,570 - - 220,570
Total Long-Term Liabilities $43,111,938 $ 76,662 $2,086,100 $ 41,102,500
xiii
CASH MANAGEMENT
The Yuma County Treasurer is responsible for cash
management and investments for the County. Most cash
assets, other than impress accounts, of the County are on
deposit through that office. Cash that is temporarily idle
during the year is invested on a short-term basis. Such
investments benefited the General, Special Revenue, and
Debt Service Funds in the amount of approximately $1.6
million in fiscal year 2001-2002.
INDEPENDENT AUDIT
Pursuant to Arizona Statute, the Auditor General has
contracted with the accounting firm Heinfeld, Meech, &
Co. to perform an audit of Yuma County’s financial
statements for fiscal year ending June 30, 2002. The results
of this audit are outlined in the Independent Auditors’ Report
that is included in the Financial Section.
FUTURE ISSUES / PROJECTS
As adopted in the Yuma County 2006 Strategic Plan, the
Yuma County Board of Supervisors has designated and is
addressing five (5) critical issues / policy areas. Listed is
the critical issue and Yuma County Board of Supervisor’s
goals to resolve:
1) Public Awareness and Trust:
☯ Improve public trust in County government
through increased public awareness and
participation.
2) Financial Needs and Resources:
☯ Create a responsible plan that balances
financial needs with available resources.
☯ Provide adequate facilities to deliver County
services.
☯ Attract and retain a competent County
workforce.
3) Community Health, Safety, and Well-Being:
☯ Provide a safe and healthy community, and
opportunities for everyone to enjoy a sense of well
being.
☯ Promote self-sufficiency among individuals and
families receiving public housing assistance.
4) Economic Development:
☯ Provide services, physical improvements and facilities
that promote economic development.
5) Customer Satisfaction:
☯ Demonstrate effectiveness of County services
through a comprehensive benchmarking program.
☯ Enhance the view of the value of County services.
AWARDS
The Government Finance Officers Association (GFOA)
awarded a Certificate of Achievement for Excellence in
Financial Reporting to Yuma County for its
Comprehensive Annual Financial Report for the year
ended June 30, 2001. This was the First year that
Yuma County has received this prestigious award. In
order to be awarded a Certificate of Achievement, the
government published an easily readable and efficiently
organized Comprehensive Annual Financial Reporting.
This report satisfied both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year
only. We believe that our current Comprehensive Annual
Financial Report continues to meet the Certificate of
Achievement Program’s requirements and we are submitting it
to the GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
The presentation of this report would not have been
possible without the efficient, effective, dedicated, and
supportive services of the entire staff of the Financial
Services Department. Their bestowed efforts to
enhance procedures, ensure accuracy, improve
systems, and conduct extensive research have allowed
for the completion of the annual audit and this report.
We would like to express our appreciation to all members of
all other agencies that assisted and contributed to the
preparation of this report. Credit also must be given to the
Board of Supervisors and the Administration for their
unsurpassable support for maintaining and strengthening the
utmost standards of professionalism in the management of
Yuma County.
Respectfully submitted,
Douglas W. Allen
Director – Financial Services
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FINANCIAL SECTION
The Financial Section contains all basic financial statements and supplemental information required to
be disclosed by GAAP (Generally Accepted Accounting Principles) and Arizona State Law, as
well as information on all individual funds not reported separately in the basic financial
statements. Also in this section is other useful supplementary information that is not required by
GAAP or Arizona State Law to represent a financial overview of Yuma County.
The following is contained in the Financial Section:
Independent Auditors’ Report I-II
General Purpose Financial Statements 01-09
Notes to the Financial Statements 10-29
Combining, Individual Fund, and Account Group Financial Statements and Schedules:
General Fund 30-39
Special Revenue Funds 40-125
Debt Service Funds 126-131
Capital Projects Funds 132-141
Internal Service Funds 142-145
Trust and Agency Funds 146-149
General Fixed Assets Account Group 150-151
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GENERAL PURPOSE
FINANCIAL STATEMENTS
1
YUMA COUNTY
Combined Balance Sheet - All Fund Types and Account Groups and Discretely Presented Component Unit
June 30, 2002
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
Assets
Cash and cash equivalents $12,477,233 $42,765,621 $140,153 $6,095,477
Cash and investments held by trustees - 339,762 3,522,051 19,305,144
Receivables (net of allowances for uncollectibles):
Property taxes 629,508 241,416 1,398 -
Accounts 84,680 722,417 - 141
Special assessments - - 424,684 -
Accrued interest 26,263 87,734 270 12,748
Other 2,019 - - -
Due from:
Other funds 1,994,894 1,190,991 - 604,236
Other governments 2,481,645 6,375,035 - 842
Inventories - 338,513 - -
Prepaid items 24,365 17,527 - -
Fixed Assets:
Land - - - -
Buildings - - - -
Improvements other than buildings - - - -
Machinery and equipment - - - -
Construction in progress - - - -
Amount available in Debt Service - - - -
Amount to be provided for retirement of general long-term debt - - - -
Total Assets $17,720,607 $52,079,016 $4,088,556 $26,018,588
Liabilities and Fund Equity
Liabilities:
Accounts payable $816,436 $1,927,197 - $73,869
Accrued payroll and employee benefits 526,708 647,266 - -
Due to:
Other funds 187,457 2,586,004 - 723,699
Other governments - 15,999 - -
Deposits held for others 3,845 128,738 - 61,310
Claims and judgments payable - - - -
Obligations under capital leases - - - -
Interest and fiscal charges payable - - $430,270 582,301
Revenue bonds payable - - 1,075,000 -
Special assessment bonds with governmental commitment payable - - 60,000 -
Certificates of participation payable - - - 920,000
Rural Development Loan - - - -
Deferred revenues 2,224,290 170,179 426,080 -
Total Liabilities 3,758,736 5,475,383 1,991,350 2,361,179
Fund equity:
Retained earnings / (deficit) - - - -
Investment in general fixed assets - - - -
Fund balances:
Reserved for debt service - - 2,097,206 2,880,500
Reserved for prepaid items 24,365 17,527 - -
Reserved for investment trust participants - - - -
Unreserved 13,937,506 46,586,106 - 20,776,909
Total fund equity 13,961,871 46,603,633 2,097,206 23,657,409
Total liablities and fund equity $17,720,607 $52,079,016 $4,088,556 $26,018,588
See accompanying notes to financial statements
2
Exhibit A-1
Proprietary Fiduciary Primary Component Reporting
Fund Type Fund Type Account Groups Government Unit Entity
Internal Trust and General General Long- Total Private Industry Total
Service Agency Fixed Assets Term Debt (Memo Only) Council (Memo Only)
$105,338 $47,243,162 - - $108,826,984 $31,449 $108,858,433
- - - - 23,166,957 - 23,166,957
- - - - 872,322 - 872,322
6,473 - - - 813,711 8,000 821,711
- - - - 424,684 - 424,684
482 134,526 - - 262,023 - 262,023
- - - - 2,019 - 2,019
- - - - 3,790,121 - 3,790,121
- - - - 8,857,522 1,015,742 9,873,264
- - - - 338,513 - 338,513
- - - - 41,892 124,243 166,135
- - $4,905,711 - 4,905,711 - 4,905,711
- - 57,766,713 - 57,766,713 - 57,766,713
- - 7,045,396 - 7,045,396 - 7,045,396
- - 17,682,756 - 17,682,756 1,625,253 19,308,009
- - 13,973,342 - 13,973,342 - 13,973,342
- - - $2,097,206 2,097,206 - 2,097,206
- - - 43,281,210 43,281,210 - 43,281,210
$112,293 $47,377,688 $101,373,918 $45,378,416 $294,149,082 $2,804,687 $296,953,769
$3,599 - - - $2,821,101 $779,221 $3,600,322
1,926 - - $3,213,821 4,389,721 79,278 4,468,999
292,961 - - - 3,790,121 - 3,790,121
- - - - 15,999 - 15,999
- $1,417,156 - - 1,611,049 - 1,611,049
513,600 - - 783,888 1,297,488 - 1,297,488
- - - 278,207 278,207 - 278,207
- - - - 1,012,571 - 1,012,571
- - - 14,460,000 15,535,000 - 15,535,000
- - - 616,930 676,930 - 676,930
- - - 25,805,000 26,725,000 - 26,725,000
- - - 220,570 220,570 - 220,570
- - - - 2,820,549 3,091 2,823,640
812,086 1,417,156 - 45,378,416 61,194,306 861,590 62,055,896
(699,793) - - - (699,793) - (699,793)
- - $101,373,918 - 101,373,918 1,625,253 102,999,171
- - - - 4,977,706 - 4,977,706
- - - - 41,892 - 41,892
- 45,960,532 - - 45,960,532 - 45,960,532
- - - - 81,300,521 317,844 81,618,365
(699,793) 45,960,532 101,373,918 - 232,954,776 1,943,097 234,897,873
$112,293 $47,377,688 $101,373,918 $45,378,416 $294,149,082 $2,804,687 $296,953,769
3
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4
YUMA COUNTY Exhibit A-2
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
All Governmental Fund Types and Discretely Presented Component Unit
Year Ended June 30, 2002
Primary Component Reporting
Governmental Fund Types Government Unit Entity
Special Debt Capital Total Private Industry Total
General Revenue Service Projects (Memo Only) Council (Memo Only)
Revenues:
Taxes $24,071,290 $22,008,169 $166 - $46,079,625 - $46,079,625
Special assessments - - 147,601 - 147,601 - 147,601
Licenses and permits 1,074,262 454,683 - - 1,528,945 - 1,528,945
Intergovernmental 15,512,572 30,863,644 - $339,063 46,715,279 $8,797,160 55,512,439
Charges for services 2,083,365 3,003,101 - - 5,086,466 551,476 5,637,942
Fines and forfeits 1,244,622 593,325 - - 1,837,947 - 1,837,947
Investment income 348,874 1,125,937 148,770 666,811 2,290,392 3,660 2,294,052
Rents 14,999 288,684 - - 303,683 7,446 311,129
Miscellaneous 219,183 625,139 - 1,071 845,393 - 845,393
Total Revenues 44,569,167 58,962,682 296,537 1,006,945 104,835,331 9,359,742 114,195,073
Expenditures:
Current:
General government 19,820,475 4,959,054 - - 24,779,529 - 24,779,529
Public safety 5,521,875 18,286,468 - - 23,808,343 - 23,808,343
Highways and streets - 5,966,113 - - 5,966,113 - 5,966,113
Sanitation 432,529 150,348 - - 582,877 - 582,877
Health 7,142,699 4,236,089 - - 11,378,788 - 11,378,788
Welfare - 3,075,574 - - 3,075,574 - 3,075,574
Culture and recreation 16,778 2,958,566 - - 2,975,344 - 2,975,344
Education 223,378 2,153,227 - - 2,376,605 9,164,143 11,540,748
Capital outlay 701,112 4,691,398 - 13,715,065 19,107,575 255,949 19,363,524
Debt service:
Principal retirement - 252,974 1,166,100 920,000 2,339,074 - 2,339,074
Interest and fiscal charges - 39,191 865,146 1,164,603 2,068,940 - 2,068,940
Total Expenditures 33,858,846 46,769,002 2,031,246 15,799,668 98,458,762 9,420,092 107,878,854
Excess of revenues
over (under) expenditures 10,710,321 12,193,680 (1,734,709) (14,792,723) 6,376,569 (60,350) 6,316,219
Other financing sources (uses):
Operating transfers in 225,838 6,689,599 1,632,045 7,790,714 16,338,196 4,709 16,342,905
Operating transfers out (9,416,777) (6,917,232) - (50,000) (16,384,009) (4,709) (16,388,718)
Special assessment bond proceeds - - - 76,662 76,662 - 76,662
Capital Leases - 312,842 - - 312,842 - 312,842
Total other financing
sources (uses) (9,190,939) 85,209 1,632,045 7,817,376 343,691 - 343,691
Excess of revenues and other sources
over (under) expenditures and other uses 1,519,382 12,278,889 (102,664) (6,975,347) 6,720,260 (60,350) 6,659,910
Fund balances, July 1, 2001, as restated 12,442,489 34,324,744 2,199,870 30,632,756 79,599,859 378,194 79,978,053
Fund balances, June 30, 2002 $13,961,871 $46,603,633 $2,097,206 $23,657,409 $86,320,119 $317,844 $86,637,963
See accompanying notes to financial statements
5
YUMA COUNTY
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - All Governmental Fund Types
Year Ended June 30, 2002
General Fund Special Revenue Funds
Budget Actual Variance Budget Actual Variance
Revenues:
Taxes $23,601,610 $24,071,290 $469,680 $21,369,381 $22,008,169 $638,788
Special assessments - - - - - -
Licenses and permits 724,080 1,074,262 350,182 395,000 454,683 59,683
Intergovernmental 14,698,693 15,512,572 813,879 40,691,897 30,863,644 (9,828,253)
Charges for services 1,874,178 2,083,365 209,187 2,714,528 3,003,101 288,573
Fines and forfeits 1,391,616 1,244,622 (146,994) 382,701 593,325 210,624
Investment income 452,678 348,874 (103,804) 812,449 1,125,937 313,488
Rents 14,998 14,999 1 253,635 288,684 35,049
Miscellaneous 265,367 219,183 (46,184) 1,712,268 625,139 (1,087,129)
Total Revenues 43,023,220 44,569,167 1,545,947 68,331,859 58,962,682 (9,369,177)
Expenditures:
Current:
General government 28,073,892 19,820,475 8,253,417 18,024,528 4,959,054 13,065,474
Public safety 5,727,724 5,521,875 205,849 20,435,091 18,286,468 2,148,623
Highways and streets - - - 6,622,993 5,966,113 656,880
Sanitation 499,654 432,529 67,125 364,636 150,348 214,288
Health 8,195,476 7,142,699 1,052,777 5,157,458 4,236,089 921,369
Welfare - - - 4,759,561 3,075,574 1,683,987
Culture and recreation 20,961 16,778 4,183 3,810,749 2,958,566 852,183
Education 249,818 223,378 26,440 7,713,006 2,153,227 5,559,779
Capital outlay 316,673 701,112 (384,439) 17,627,311 4,691,398 12,935,913
Debt service:
Principal retirement - - - 285,827 252,974 32,853
Interest and fiscal charges - - - 35,342 39,191 (3,849)
Total Expenditures 43,084,198 33,858,846 9,225,352 84,836,502 46,769,002 38,067,500
Excess of revenues
over (under) expenditures (60,978) 10,710,321 10,771,299 (16,504,643) 12,193,680 28,698,323
Other financing sources (uses):
Operating transfers in 50,000 225,838 175,838 6,786,919 6,689,599 (97,320)
Operating transfers out (9,532,792) (9,416,777) 116,015 (8,701,886) (6,917,232) 1,784,654
Special assessment bond proceeds - - - - - -
Capital Leases - - - - 312,842 312,842
Total other financing
sourcres (uses) (9,482,792) (9,190,939) 291,853 (1,914,967) 85,209 2,000,176
Excess of revenues and other sources
over (under) expenditures and other uses (9,543,770) 1,519,382 11,063,152 (18,419,610) 12,278,889 30,698,499
Fund balances, July 1, 2001, as restated 9,543,770 12,442,489 2,898,719 21,446,076 34,324,744 12,878,668
Fund balances, June 30, 2002 - $13,961,871 $13,961,871 $3,026,466 $46,603,633 $43,577,167
See accompanying notes to financial statements
6
Exhibit A-3
Debt Service Funds Capital Project Funds Totals - (Memorandum Only)
Budget Actual Variance Budget Actual Variance Budget Actual Variance
- $166 $166 - - - $44,970,991 $46,079,625 $1,108,634
$201,221 147,601 (53,620) - - - 201,221 147,601 (53,620)
- - - - - - 1,119,080 1,528,945 409,865
- - - $5,577,150 $339,063 ($5,238,087) 60,967,740 46,715,279 (14,252,461)
- - - - - - 4,588,706 5,086,466 497,760
- - - - - - 1,774,317 1,837,947 63,630
74,899 148,770 73,871 650,148 666,811 16,663 1,990,174 2,290,392 300,218
- - - - - - 268,633 303,683 35,050
- - - 700 1,071 371 1,978,335 845,393 (1,132,942)
276,120 296,537 20,417 6,227,998 1,006,945 (5,221,053) 117,859,197 104,835,331 (13,023,866)
- - - - - - 46,098,420 24,779,529 21,318,891
- - - - - - 26,162,815 23,808,343 2,354,472
- - - - - - 6,622,993 5,966,113 656,880
- - - - - - 864,290 582,877 281,413
- - - - - - 13,352,934 11,378,788 1,974,146
- - - - - - 4,759,561 3,075,574 1,683,987
- - - - - - 3,831,710 2,975,344 856,366
- - - - - - 7,962,824 2,376,605 5,586,219
- - - 23,143,819 13,715,065 9,428,754 41,087,803 19,107,575 21,980,228
1,149,899 1,166,100 (16,201) 920,000 920,000 - 2,355,726 2,339,074 16,652
1,020,451 865,146 155,305 1,196,423 1,164,603 31,820 2,252,216 2,068,940 183,276
2,170,350 2,031,246 139,104 25,260,242 15,799,668 9,460,574 155,351,292 98,458,762 56,892,530
(1,894,230) (1,734,709) 159,521 (19,032,244) (14,792,723) 4,239,521 (37,492,095) 6,376,569 43,868,664
1,894,230 1,632,045 (262,185) 9,507,716 7,790,714 (1,717,002) 18,238,865 16,338,196 (1,900,669)
- - - (50,000) (50,000) - (18,284,678) (16,384,009) 1,900,669
- - - - 76,662 76,662 - 76,662 76,662
- - - - - - - 312,842 312,842
1,894,230 1,632,045 (262,185) 9,457,716 7,817,376 (1,640,340) (45,813) 343,691 389,504
- (102,664) (102,664) (9,574,528) (6,975,347) 2,599,181 (37,537,908) 6,720,260 44,258,168
- 2,199,870 2,199,870 9,574,528 30,632,756 21,058,228 40,564,374 79,599,859 39,035,485
- $2,097,206 $2,097,206 - $23,657,409 $23,657,409 $3,026,466 $86,320,119 $83,293,653
7
YUMA COUNTY
Combined Statement of Revenues, Expenses, and Changes in Retained Earnings
All Proprietary Fund Types
Year Ended June 30, 2002
Exhibit A-4
Operating revenues:
Special assessments
Contributions
Miscellaneous
Total operating revenues
Operating expenses:
Personal services
Professional services
Health services
Legal notices
Other
Total operating expenses
Operating income / (loss)
Nonoperating revenues
Investment income
Total nonoperating revenues
Income / (loss) before operating transfers
Operating transfers
Net income / (loss)
Retained earnings / (deficit), July 1, 2001, as restated
Retained earnings / (deficit), June 30, 2002
See accompanying notes to the financial statements
$22,504
3,392,098
32
3,414,634
90,984
63,220
3,364,590
1,775
28,909
3,549,478
(134,844)
7,254
7,254
(127,590)
45,813
(81,777)
(618,016)
($699,793)
8
YUMA COUNTY
Combined Statement of Cash Flows
All Proprietary Fund Types
Year Ended June 30, 2002
Exhibit A-5
Cash flows from operating activities:
Operating income / (loss)
Adjustments to reconcile operating income / (loss) to net cash
provided / (used) by operating activities:
Changes in assets and liablities:
(Increase) / decrease in assets:
Accounts receivable
Due from other county funds
Fixed Asset (net accumulated depreciation)
Increase / (decrease) in liabilities:
Accounts payable
Accrued payroll and employee benefits
Claims payable
Due to other funds
Net cash provided by / (used) for operating activities
Cash flows from non-capital financing activities:
Transfer from general fund
Net cash provided by non-capital financing activities
Cash flows from investing activities:
Investment income
(Increase) in accrued interest receivable
Net cash provided by investing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents, July 1, 2001, as restated
Cash and cash equivalents, June 30, 2002
See accompanying notes to the financial statements
($134,844)
407
102,365
1,432
(8,863)
(751)
(336,400)
126,107
(250,547)
45,813
45,813
7,254
(262)
6,992
(197,742)
303,080
$105,338
9
YUMA COUNTY
Combining Statement of Changes in Net Assets
All Investment Trust Funds
Year Ended June 30, 2002
Exhibit A-6
Additions:
Contributions from participants
Investment income
Total additions
Deductions:
Distributions to participants
Total deductions
Net increase (decrease) in net assets
Net assets held in trust July 1, 2001:
Net assets held in trust June 30, 2002:
See accompanying notes to financial statements
Investment
Trust
$262,154,541
953,657
263,108,198
263,662,720
263,662,720
(554,522)
46,515,054
$45,960,532
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements contain various disclosures considered necessary to ensure that a clear
understanding has been presented in the financial statements. The note disclosures are an integral
part of the financial statements. The following Notes to the Financial Statements are disclosed:
Note 1: Summary of Significant Accounting Policies 10-13
A: Reporting Entity 10
B: Fund Accounting 10-11
1: Governmental Funds 11
2: Proprietary Funds 11
3: Fiduciary Funds 11
4: Account Groups 11
C: Basis of Accounting 11
D: Budgeting and Budgetary Control 12
E: Cash and Investments 12
F: Inventories 12
G: Fixed Assets 12
H: Compensated Absences 13
I: Investment Income 13
J: Property Taxes 13
K: Intergovernmental Grants and Aid 13
L: Total Columns on Combined Statements 13
Note 2: Stewardship, Compliance, and Accountability 13
Note 3: Individual Fund Deficits 13-14
Note 4: Deposits and Investments 15-16
Note 5: County Treasurer’s Investment Pool 16-17
Note 6: Property Taxes Receivable 17
Note 7: Due from Other Governments 18
Note 8: Changes in General Fixed Assets 18
Note 9: Bonds Payable 18-19
Note 10: Rural Development Loan 19-20
Note 11: Certificates of Participation Payable (COP) 20-21
Note 12: Obligations under Leases 21
Note 13: Claims and Judgments Payable 21
Note 14: Risk Management 22
Note 15: Changes in Long-Term Liabilities 22
Note 16: Retirement Plans 23-25
A: Plan Descriptions 23
B: Funding Policy 23
C: Annual Pension Costs 24
D: Trend Information 24
E: Analysis of Funding Progress 24-25
Note 17: Interfund Receivables and Payables 25-26
Note 18: Construction Commitments 27
Note 19: Reporting Changes 27-29
Note 20: Budgetary Compliance 29
Note 21: Implementation of GASB Statement No. 34 29
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Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
10
Note 1 - Summary of Significant Accounting Policies
The accounting policies of Yuma County conform to generally accepted accounting principles applicable to
governmental units adopted by the Governmental Accounting Standards Board (GASB). A summary of the County's
more significant accounting policies follows.
The County's major operations include general government, public safety, highway and street maintenance and
construction, sanitation, health, welfare, culture and recreation, and education.
A. Reporting Entity
The County is a general-purpose local government that is governed by a separately elected board of five county
supervisors. These general-purpose financial statements present all the fund types and account groups of the
County (a primary government) and its component units.
Component units are legally separate entities for which the County is considered to be financially accountable.
Blended component units, although legally separate entities, are in substance part of the County's operations.
Therefore, data from these units is combined with data of the primary government. Discretely presented component
units, on the other hand, are reported in a separate column in the combined financial statements to emphasize they
are legally separate from the County. Each blended and discretely presented component unit discussed below has a
June 30 year-end.
Blended Component Unit - A number of special districts has been established within the County to serve unique
needs. These special districts consist of various improvement districts, a library district, a jail district, and a flood
control district. Although these special districts are legally separate entities from the County, the County’s Board of
Supervisors serves as the Board of Directors for each of these entities. Consequently, the financial data for each of
these districts is blended with the primary government’s data and reported in the County’s Special Revenue Funds,
Debt Service Funds, the General Fixed Assets Account Group, and the General Long-Term Debt Account Group.
Separate financial statements of the blended component units are not prepared, except for the Jail District. General
purpose financial statements for the Yuma County Jail District may be obtained from the Yuma County
Administrative Building, located at 198 Main Street, Yuma, Arizona 85364, attn: Douglas Allen, Director of Financial
Services.
Discretely Presented Component Unit - The Yuma Private Industry Council was established under the Job
Training Partnership Act and acts as the administrative entity for the program in Yuma County. Although the Council
is legally separate from the County, the County's Board of Supervisors appoints all members of the Council's
governing board. With the passage of the Workforce Investment Act of 1998, a second board was established
effective April 1, 2000, known as the Local Workforce Investment Board, with members also appointed by the Board
of Supervisors. Complete financial statements for the discretely presented component unit may be obtained from
the Yuma Private Industry Council, located at 3834 W. 16th Street, Yuma, Arizona 85364, attn: Mary McCormick,
Administrative Director.
B. Fund Accounting
The County's accounts are maintained in accordance with the principles of fund accounting to ensure that limitations
and restrictions on the County's available resources are observed. The principles of fund accounting require that
resources be classified for accounting and reporting purposes into funds or account groups in accordance with the
activities or objectives specified for those resources. Each fund is considered a separate accounting entity, and its
operations are accounted for in a separate set of self-balancing accounts that comprise its assets, liabilities, fund
equity, revenues, and expenditures or expenses. Account groups are reporting devices to account for certain assets
and liabilities of the governmental funds not recorded directly in those funds.
Accounts are separately maintained for each fund and account group; however, in the accompanying financial
statements, funds that have similar characteristics have been combined into generic fund types that are further
classified into broad fund categories. A description of the County’s fund categories, types, and account groups
follows.
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
11
Note 1 - Summary of Significant Accounting Policies (Continued)
1. Governmental Funds account for the County's general government activities using the flow of current financial
resources measurement focus and include the following fund types.
The General Fund is the County's primary operating fund. It accounts for all financial resources of the County,
except those required to be accounted for in other funds.
The Special Revenue Funds account for specific revenue sources, other than major capital projects, that are legally
restricted to expenditures for specified purposes.
The Debt Service Funds account for resources accumulated and used for the payment of general long-term debt
principal, interest, and related costs.
The Capital Projects Funds account for resources to be used for acquiring or constructing major capital facilities,
other than those financed by Proprietary Funds.
2. Proprietary Funds account for the County's ongoing activities that are similar to those found in the private
sector using the flow of economic resources measurement focus. The County applies all applicable Financial
Accounting Standards Board Statements and Interpretations, Accounting Principles Board Opinions, and Accounting
Research Bulletins to its proprietary activities unless those pronouncements conflict with or contradict GASB
pronouncements.
The Internal Service Funds account for the financing of goods or services provided by the department or agency to
other County departments or agencies, or to other governments on a cost-reimbursement basis.
3. Fiduciary Funds account for assets the County holds on behalf of others, and include the following fund types.
The Investment Trust Funds account for investments made by the County on behalf of other governmental entities
using the economic resources measurement focus.
The Agency Fund is custodial in nature and does not present results of operations or have a measurement focus.
This fund is used to account for assets that the government holds for others in an agency capacity.
4. Account Groups are used to establish control and accountability for certain County assets and liabilities that
are not recorded in the funds and include the following two groups.
The General Fixed Assets Account Group accounts for all of the County’s fixed assets except those accounted for in
the internal service funds and discretely presented component unit.
The General Long-Term Debt Account Group accounts for all of the County’s long-term obligations except those
accounted for in the internal service funds and in the discretely presented component unit.
C. Basis of Accounting
The financial statements of the Governmental and Agency Funds are presented on the modified accrual basis of
accounting. Revenues are recognized when they become measurable and available to finance current-period
expenditures. Expenditures are recognized when the related fund liability is incurred, except for principal and
interest on general long-term debt that are recognized when due. However, since debt service resources are
provided during the current year for payment of general long-term debt principal and interest due early in the
following year, those expenditures and related liabilities have been recognized in the Debt Service Funds.
Revenues susceptible to accrual are property taxes; franchise taxes; special assessments; licenses and permits;
intergovernmental aid, grants, and reimbursements; interest revenue; charges for services; and sales taxes
collected and held by the State at year-end on the County’s behalf. Fines and forfeits, rents, contributions, and
miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in
cash.
The financial statements of the Proprietary and Investment Trust Funds are presented on the accrual basis of
accounting. Revenues are recognized when they are earned, and expenses are recognized when they are incurred.
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
12
Note 1 - Summary of Significant Accounting Policies (Continued)
D. Budgeting and Budgetary Control
Arizona Revised Statutes (A.R.S.) require the County to prepare and adopt a balanced budget annually for each
separate fund. The Board of Supervisors must approve such operating budgets on or before the third Monday in July
to allow sufficient time for the legal announcements and hearings required for the adoption of the property tax levy
on the third Monday in August. A.R.S. prohibit expenditures or liabilities in excess of the amounts budgeted.
Essentially, the County prepares its budget on the same modified accrual basis of accounting used to record actual
revenues and expenditures.
The County has adopted budgets in accordance with the A.R.S. requirements for the General, Special Revenue,
Debt Service, and Capital Projects Funds. Formal budget integration is not employed for the Internal Service Funds
because effective budgetary control is alternatively achieved through the capability of cost recovery.
Expenditures may not legally exceed appropriations at the department level. In certain instances, transfers of
appropriations between departments or from the contingency account to a department may be made upon approval
of the Board of Supervisors.
Encumbrance accounting, under which purchase orders, contracts, and other commitments to expend monies are
recorded to reserve that portion of the applicable fund balance, is not employed by the County during the year.
However, the County must encumber amounts necessary and available to pay liabilities outstanding for goods or
services received but unpaid at June 30, after which warrants may be drawn against the encumbered amounts for
60 days immediately following the close of the fiscal year. After 60 days, the remaining encumbered balances lapse.
E. Cash and Investments
For purposes of its statement of cash flows, the County considers only those highly liquid investments with a
maturity of three months or less when purchased to be cash equivalents.
Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and
participating interest-earning investment contracts with a remaining maturity of one year or less at time of purchase
are stated at amortized cost. All other investments are stated at fair value.
F. Inventories
Inventories of the Governmental Funds consist of expendable supplies held for consumption and are recorded as
assets when purchased and expended when consumed. These inventories are stated at cost using the first-in, first-out
method.
G. Fixed Assets
Purchased fixed assets capitalized in the General Fixed Assets Account Group are recorded at the time of purchase
as expenditures in the funds from which the expenditures were made. Such assets are capitalized at cost, or
estimated cost if historical records are not available. Donated fixed assets are capitalized at their estimated fair
market value at the time received.
Depreciation on general fixed assets is not recorded, and interest incurred during construction is not capitalized.
Also, public domain (infrastructure) general fixed assets consisting of certain improvements other than buildings,
such as roads, bridges, curbs and gutters, streets and sidewalks, and drainage and lighting systems, are not
capitalized.
Purchased fixed assets of the Internal Service Funds are capitalized in those funds at cost. Major outlays for assets
or improvements to them are capitalized as projects are constructed. Interest incurred during the construction phase
of the project is capitalized net of interest earned on the invested proceeds over the same period. Donated fixed
assets are capitalized at their estimated fair market value at the time received. Depreciation of fixed assets in the
Internal Service Funds is charged as an expense against operations. These assets are depreciated over their
estimated useful lives using the straight-line method. There are currently no fixed assets in the Internal Service
Funds.
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
13
Note 1 - Summary of Significant Accounting Policies (Concluded)
H. Compensated Absences
Compensated absences consist of vacation leave and a calculated amount of sick leave earned by employees
based on services already rendered.
Employees may accumulate up to 240 hours of vacation depending on years of service, but any vacation hours in
excess of the maximum amount that are unused at year-end are forfeited. Upon termination of employment, all
unused and unforfeited vacation benefits are paid to employees. Accordingly, vacation benefits are accrued as a
liability in the financial statements.
Employees may accumulate an unlimited number of sick leave hours. Generally, sick leave benefits provide for
ordinary sick pay and are cumulative but are forfeited upon termination of employment. However, for employees who
terminate with a minimum of five years continuous service, sick leave benefits do vest, and, therefore, are accrued.
Upon termination, eligible terminating employees are compensated for actual sick leave up to 1,000 hours at $3 per
hour.
The liability for vested compensated absences of the Governmental Funds is recorded in the General Long-Term
Debt Account Group since the amount expected to be paid from current financial resources is not significant. Vested
compensated absences of the Internal Service Funds are recorded as expenses and liabilities of those funds as the
benefits accrue to employees.
I. Investment Income
Investment income is composed of interest, dividends, and net changes in the fair value of applicable investments.
J. Property Taxes
Property taxes are recognized as revenues in the fiscal year they are levied and collected or if they are collected
within 60 days subsequent to fiscal year-end. Property taxes not collected within 60 days subsequent to fiscal year-end
or collected in advance of the fiscal year for which they are levied are reported as deferred revenues.
K. Intergovernmental Grants and Aid
Grants and assistance awards made on the basis of entitlement periods are recorded as intergovernmental
receivables and revenues when entitlement occurs. Reimbursement grants are recorded as intergovernmental
receivables and revenues when the related expenditures or expenses are incurred. Reimbursements not received
within 60 days subsequent to fiscal year-end are reported as deferred revenues.
L. Total Columns on Combined Statements
Total columns on the combined statements are captioned “Memorandum Only” to indicate that they are presented
only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or
cash flows in conformity with generally accepted principles. Neither is such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data.
Note 2 - Stewardship, Compliance, and Accountability
Four Special Revenue Funds, one Capital Projects Fund, and one Debt Service Fund had an excess of actual
expenditures over appropriations as reported on the Combined Statement of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual – All Governmental Fund Types. Generally, the excesses were the result of
unexpected expenditures in those departments during the year. See Note 20 for a detailed listing of funds in excess
of actual expenditures over appropriations by individual fund – budget and actual.
Note 3 - Individual Fund Deficits
The following individual funds, listed on the following page, had fund deficits as of June 30, 2002. These fund
deficits resulted from either operations during the year or a carryover deficit from prior years but are expected to be
corrected through normal operations in fiscal year 2002-03 or fiscal year 2003-2004.
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
14
Note 3 - Individual Fund Deficits (Concluded)
Fund Type Fund Description Fund # Deficit Fund Description Fund # Deficit
Special Revenue Clerk of Superior Court: Improvement Districts (Continued):
IV-D Case Processing Y353 5,313 Hazelwood Estates 1952 315
Judicial Collection Enhancement Y355 82 Hettema Place Units I, II, & III 1833 910
Development Services: Hyder Valley 1808 730
CDBG Y310 2,212 International Plaza / Esconditdo Beach 1835 1,020
Juvenile Court: Kachina Estates 1836 569
Juvenile Justice & Delinquency Y236 306 La Jolla Del Valle Subdivision 1838 596
Juvenile Safe School Y244 1,527 Lightle Acres / Pecan Park 1860 732
Improving AM Schools Y257 7,102 Los Portales Del Alamo No. IV 1966 1,144
Drug Court Education Y262 1,395 Los Portales Del Alamo Subdivision 1845 1,903
Sheriff - Administration: M & B Improvement 1834 185
Gang Resistant Educate & Train Y304 13,161 Magnolia Village Unit I & II 1847 652
Other Funds: Meadowbrook Subdivision 1850 1,285
Flood Control Zone 1 Y232 5,272 Old World Village 1853 1,055
Flood Control Zone 2 Y233 12,036 Orange Grove Mobile Manor Unit V 1941 470
Flood Control Zone 4 Y235 2,952 Orange Grove Mobile Manor Units I & II 1854 1,068
Improvement Districts: Padre Ranchitos 1855 653
Amistad Estate (92-3) 1811 1,195 Parkway Subdivision 1857 242
Amistad Estates Unit II (94-7) 1807 433 Pecan Grove Addition 1858 699
Arcadia Meadows 1812 521 Pecan Grove Subdivision 1859 646
Bardeaux Oakes 1946 608 Pfeiffer Estates 1861 1,162
Buntin Estates 1813 1,104 Rancho Mesa Verde 1938 2,433
Casa Del Sol Phase I (96-1) 1810 2,749 Rancho Sereno 1950 3,284
Casa Manana Mobile Estates 1814 1,086 Rancho Viejo Unit II 1866 583
Collins Country Manor 1817 2,564 Rancho Viejo Unit III 1867 491
Country Meadows 1951 449 Siesta Acres 1873 209
Country Meadows II 1953 461 Sun Valley Estates No. III 1899 1,628
Crane Annex 1815 312 Sunburst Estates Unit II 1876 530
Crane Subdivision 1816 338 Suncrest Estates No. I 1947 335
Debra Jean Estates 1819 413 Sunglow Ranchettes 1877 6,975
Del Oro Mobile Estates 1820 1,148 Tierra Mesa Estates No. V & VI 1955 2,699
Donovan Estates 1823 1,079 Union Improvements 1881 564
Donovan Estates Unit II 1824 842 Valley Citrus Estates Unit II 1883 986
Edenwood West Subdivision 1825 891 Valley Citrus Estates Unit III 1884 1,013
Eight Street West Units I & II 1826 291 Valley Park Homes 1885 149
El Pueblocito Subdivision 1827 2,348 Verde Valley Acres 1886 1,157
Fair Acres Subdivision 1828 444 Villa Cordova Subdivision 1887 1,596
Foothills Mobile Estates No. XXI 1963 1,201 Villa Hermosa 1888 699
Foothills Mobile Estates Unit XXVI 1967 18,521 Villa Hermosa Unit II 1889 907
Foothills No. XXV 1965 46,852 Villa Hermosa Unit Iia & Iib 1890 888
Galahad Manor of Camelot 1948 140 Wahlquist Subdivision 1908 1,278
Green Acres Amended 1832 1,255 West Crane Unit II 1895 433
Green Acres Units II & Other Lands 1912 1,251 Yuma Valley 1929 778
Zocalo Gardens 1909 1,393
Debt Service Sunglow Ranchettes 1541 4,721
Capital Projects El Prado Estates 1717 19,608
Gadsden 1719 208
Internal Service Health Self-Insurance Y605 692,517
Revolving Fund Y700 7,276
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
15
Note 4 - Deposits and Investments
A.R.S. authorize the County to invest public monies in the State Treasurer's investment pool; U.S. Treasury
obligations; specified state and local government bonds; and interest-earning investments such as savings
accounts, certificates of deposit, and repurchase agreements in eligible depositories. The statutes require collateral
for demand deposits, certificates of deposit, and repurchase agreements at 101 percent of all deposits not covered
by federal depository insurance.
County Treasurer’s Investment Pool – A.R.S. require community colleges, school districts, and other local
governments to deposit certain public monies with the County Treasurer (see Note 5). Those monies are pooled
with County monies for investment purposes.
Deposits—At June 30, 2002, the investment pool had cash on hand of $9,320. The carrying amount of the
investment pool’s total cash in bank was $1,423,912, and the bank balance was $1,430,839. Of the bank balance,
$100,000 was covered by federal depository insurance or by collateral held by the County or its agent in the
County’s name and $1,330,839 was covered by collateral held by the pledging financial institution’s trust department
or agent in the County’s name.
Investments—The State Board of Deposit provides oversight for the State Treasurer’s pools, and the Local
Government Investment Pool Advisory Committee provides consultation and advice to the Treasurer. The fair value
of a participant’s position in the pool approximates the value of that participant’s pool shares.
The investment pool’s investments at June 30, 2002, are categorized below to give an indication of the level of risk
the County assumed at year-end.
Category 1— insured or registered in the County’s name, or securities held by the County or its agent in the
County’s name.
Category 2— uninsured and unregistered with securities held by the counterparty’s trust department or agent in
the County’s name.
Category 3— uninsured and unregistered with securities held by the counterparty, or by its trust department or
agent but not in the County’s name.
_____Category________
1 2 3
Fair
Value
U.S. government securities $10,075,340 $ $ $10,075,340
Investments not subject to
categorization:
State Treasurer's
investment pool
96,411,244
Total $106,486,584
Other Deposits—At June 30, 2002, the carrying amount of the County’s total nonpooled cash on hand was $268,218, the
carrying amount of the total nonpooled cash in bank was $21,407,437, and the bank balance was $22,812,268. Of the bank
balance, $1,992,050 was covered by federal depository insurance or by collateral held by the County or its agent in the
County's name and $20,820,218 was covered by collateral held by the pledging financial institution's trust
department or agent in the County's name.
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
16
Note 4 - Deposits and Investments (Concluded)
Other Investments—The State Board of Deposit provides oversight for the State Treasurer’s pools, and the Local
Government Investment Pool Advisory Committee provides consultation and advice to the Treasurer. The fair value
of a participant’s position in the pool approximates the value of that participant’s pool shares. The County’s
nonpooled investments at June 30, 2002, are categorized below to give an indication of the level of risk assumed by
the County at year-end.
_ Category________
1 2 3
Fair
Value
Investments not subject to
categorization:
State Treasurer's
investment pool
$2,429,919
Total $2,429,919
A reconciliation of cash and investments to amounts shown on the combined balance sheet follows.
Cash and investments:
County Treasurer’s
Investment Pool Other Total
Cash on hand $ 9,320 $ 268,218 $ 277,538
Carrying amount of
deposits
1,423,912 21,407,437 22,831,349
Reported amount of
investments 106,486,584 2,429,919 108,916,503
Total $ 107,919,816 $ 24,105,574 $132,025,390
Combined balance sheet:
Cash and cash equivalents $ 108,858,433
Cash and investments held by trustees 23,166,957
Total $132,025,390
Note 5 - County Treasurer’s Investment Pool
A.R.S. require community colleges, school districts, and other local governments to deposit certain public monies with
the County Treasurer. The Treasurer has a fiduciary responsibility to administer those and the County monies under
her stewardship. The Treasurer invests, on a pool basis, all idle monies not specifically invested for a fund or
program. In addition, the Treasurer determines the fair value of those pooled investments annually at June 30.
The County Treasurer’s investment pool is not registered with the Securities and Exchange Commission as an
investment company and there is no regulatory oversight of its operations. The pool’s structure does not provide for
shares and the County has not provided or obtained any legally binding guarantees to support the value of the
participants’ investments.
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
17
Note 5 - County Treasurer’s Investment Pool (Concluded)
Details of each major investment classification follow.
Investment
Type Principal Interest Rate Maturities Fair Value
U.S. government
securities $10,000,000 4.00 – 5.75% 12/2001 – 05/2007 $10,075,340
State Treasurer’s
investment pool $96,411,244 No stated interest No stated maturity $96,411,244
rate
A condensed statement of the investment pool’s net assets and changes in net assets follows.
Statement of Net Assets
Assets $104,979,909
Liabilities 0
Net assets 104,979,909
Net assets held in trust for:
Internal participants 61,452,556
External participants 43,527,353
Total net assets held in trust
Statement of Changes in Net Assets
$104,979,909
Total additions $368,507,551
Total deductions 351,635,202
Net increase 16,872,349
Net assets held in trust:
July 1, 2001 88,107,560
June 30, 2002 $104,979,909
Note 6 - Property Taxes Receivable
The County levies real property taxes on or before the third Monday in August that become due and payable in two
equal installments. The first installment is due on the first day of October and becomes delinquent after the first
business day of November. The second installment is due on the first day of March of the next year and becomes
delinquent after the first business day of May.
During the year, the County also levies various personal property taxes that are due the second Monday of the
month following receipt of the tax notice and become delinquent 30 days later.
Pursuant to A.R.S., a lien assessed against real and personal property attaches on the first day of January
preceding assessment and levy.
Property taxes receivable consist of uncollected property taxes as determined from the records of the County
Treasurer's Office, and at June 30, 2002, the uncollected property taxes and related allowances for uncollectibles
were as follows:
General Special Debt
Fiscal Year Fund Revenue Service
2001-2002 $526,106 $192,149 $ -
Prior Years 161,484 73,569 3,669
Total Receivable 687,590 265,718 3,669
Less allowances for uncollectibles (58,082) (24,502) (2,271)
Property Tax Receivable (Net Uncollectibles) $629,508 $241,216 $ 1,398
The portion of property taxes receivable not collected within 60 days after June 30, 2002 has been deferred and,
consequently, is not included in current-year revenues.
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
18
Note 7 - Due from Other Governments
Amounts due from other governments reported in the Governmental Fund Types totaling $8,857,522 at June 30,
2002 include $1,200,890 in County sales taxes; $1,209,825 in County Jail District sales taxes; $1,217,477 in state-shared
revenue from state sales taxes; $1,525,914 in state-shared revenue from highway user taxes; and
$1,198,059 in Capital Projects Sales Taxes. The remaining $2,505,357 of the total receivables consists of grants and
reimbursements from local, state, and federal governments. Amounts due from other governments in the discretely
presented component unit at June 30, 2002 consists of grants and reimbursements from state and federal
governments.
Note 8 - Changes in General Fixed Assets
Effective July 1, 2001, Yuma County changed the threshold for capitalization of fixed assets. Machinery and
equipment changed from $1,000 to $5,000. Land, buildings, and improvements other than buildings changed from
$5,000 to $10,000. A summary of the changes in general fixed assets for the General Fixed Assets Account Group
and machinery and equipment for the Internal Service Funds and Component Unit follows:
General Fixed Assets Account Group
Restated
Balance Balance
July 01, 2001 Additions Deletions June 30, 2002
Land $ 4,791,877 $ 113,834 $ - $ 4,905,711
Buildings 56,856,364 910,349 57,766,713
Improvements other than buildings 7,010,453 34,943 7,045,396
Machinery and equipment 17,936,943 1,999,141 2,253,328 17,682,756
Construction in progress 1,590,438 12,382,904 13,973,342
Total Fixed Assets $88,186,075 $15,441,171 $2,253,328 $101,373,918
Discretely Presented Component Unit
Machinery and Equipment $ 1,763,223 $ 421,015 $ 558,985 $ 1,625,253
Note 9 - Bonds Payable
The County's bonded debt consists of one revenue bond issue and three special assessment bonds with
governmental commitment.
Revenue Bonds—The Yuma County Jail District Revenue Bonds of 1996 were issued to finance the expansion of
Yuma County’s correction facilities. The bonds are generally callable with interest payable semiannually. The
obligations are secured by the pledge of net revenues from County Maintenance of Effort Payments and transaction
privilege (sales) tax approved by the County’s voters on May 16, 1995. The bond resolution also requires the
County to use a portion of the proceeds to establish and maintain a bond reserve fund, which the County has done
by placing $950,000 of the proceeds in an escrow account in the custody of a trustee.
Principal and interest requirements at June 30, 2002, were as follows:
Description
Interest
Rates Maturities
Outstanding
Principal
July 1, 2001 Retirements
Outstanding
Principal
June 30, 2002
Yuma County Jail District
Pledged Revenue
Obligations Series 1996 4.3-6.0% 7/01-7/2012 $16,565,000 $(1,030,000) $15,535,000
Total $16,565,000 $(1,030,000) $15,535,000
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
19
Note 9 - Bonds Payable (Concluded)
Revenue bond debt service requirements to maturity, including $3,418,173 of interest, are as follows:
Year ending June 30,
2003 $1,893,705
2004 1,896,205
2005 1,894,505
2006
2007
1,896,255
1,894,755
Thereafter 9,477,748
Total $18,953,173
Special Assessment Bonds with Governmental Commitment—Special assessment bonds are secured by
pledges of revenues from special assessments levied against the benefiting property owners. The proceeds of the
bond issues were used to finance construction in these districts. These bonds are generally callable with interest
payable semiannually.
The following special assessment districts had bonds outstanding at June 30, 2002.
Description
Interest
Rate Maturities
Outstanding
Principal
July 1, 2001
(as restated)
Issued /
(Retirements)
Outstanding
Principal
June 30, 2002
Del Sur Improvement
District Pledged Special
Assessment Obligations
Donovan Estates Unit Two
Improvement District
Pledged Special
Assessment Obligations
El Prado Estates
Improvement District
USDA Bond
4.750%
4.375%
4.375%
01/02-01/09
01/02-01/24
01/03-01/22
$115,000
516,300
60,068
$(14,000)
(77,100)
76,662
$101,000
439,200
136,730
Total $ 691,368 $(14,438) $676,930
Special assessment bond debt service requirements to maturity, including $260,459 of interest, are as follows:
Year ending June 30,
2003 $ 67,857
2004 66,795
2005 65,898
2006 64,863
2007 64,867
Thereafter 607,109
Total $ 937,389
Note 10 – Rural Development Loan
In fiscal year ended June 30, 2001, the County entered into a loan agreement with the United States Department of
Agriculture through its Water Infrastructure Financing Authority (WIFA) for water system improvements. The WIFA
loan has a principal amount of $261,555 and is drawn down as construction payments were made. At June 30,
2002, $220,570 from the loan has been drawn down. The remaining $40,985 is expected to be drawn down and
used in fiscal year 2003. Interest payments are made semi-annually and principal payments will be made annually
starting fiscal year 2003. The amortization schedule has the final payment on January 1, 2022.
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
20
Note 10 – Rural Development Loan (Concluded)
Rural Development Loan debt service requirements to maturity, including $85,758 of interest, are as follows:
Year ending June 30,
2003 $ 17,355
2004 17,348
2005 17,341
2006 17,333
2007 17,326
Thereafter 219,625
Total $ 306,328
Note 11 - Certificates of Participation Payable (COP)
During the year ended June 30, 1998, the County issued $5,340,000 in certificates of participation with an interest
rate of 3.75-5.0 percent to finance the construction of a new health/office facility. Interest on the obligations is
payable semiannually. The certificates are payable primarily from semiannual lease payments pursuant to the
lease-purchase agreement dated April 1, 1998. Certificates maturing on or prior to July 1, 2008, are not callable.
Certificates maturing on or after July 1, 2009, are callable. The resolution also requires the trustee to use a portion
of the proceeds to purchase a $534,000 surety bond.
During the year ended June 30, 2000, the County issued $4,405,000 in certificates of participation with an interest
rate of 4.0-5.4 percent to purchase office facilities. Interest on the obligations is payable semiannually. The
certificates are payable primarily from semiannual lease payments pursuant to the lease-purchase agreement dated
November 1, 1999. Certificates maturing on or prior to July 1, 2006, are not callable. Certificates maturing on or
after July 1, 2007, are callable on July 1, 2007 or January 1, 2008 with a 1% premium. Certificates called on or after
July 1, 2008 can be redeemed at face value. The certificate of participation resolution also requires the County to
use a portion of the proceeds to establish and maintain a reserve fund, which the County has done by placing
$440,500 of the proceeds in an escrow account in the custody of a trustee.
During the year ended June 30, 2001, the County issued $19,060,000 ($16,640,000 Series 2001A and $2,420,000
Series 2001B) in certificates of participation with an interest rate of 4.0-4.5 percent for Series 2001A and 3.5-4.3
percent for Series 2001B to fund various real and personal property projects. Interest on the obligations is payable
semiannually. The certificates are payable primarily from semiannual lease payments pursuant to the lease-purchase
agreement dated March 5, 2001. The resolution also requires the County to use a portion of the proceeds
to establish and maintain a bond reserve fund in the amount of $1,664,000 for the Series 2001A issuance and
$242,000 for the Series 2001B issuance. Certificates are not callable on these issues.
Principal and interest requirements at June 30, 2002, were as follows:
Description
Interest
Rates Maturities
Outstanding
Principal
July 1, 2001
Issues/
(Retirements)
Outstanding
Principal
June 30, 2002
Certificates of Participation
Series 1998
Certificates of Participation
Series 1999
Certificates
Of
Participation Series 2001A
Series2001B
3.75-5.0%
4.0-5.4%
4.0-4.5%
3.5-4.3%
7/01-7/2012
7/01-7/2012
7/02-07/08
7/01-07/08
$4,290,000
4,065,000
16,640,000
2,420,000
$ (350,000)
(340,000)
-
-
$3,940,000
3,725,000
16,640,000
2,420,000
Total $27,415,000 $(690,000) $26,725,000
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
21
Note 11 - Certificates of Participation Payable (Concluded)
Certificates of participation debt service requirements to maturity, including $5,026,614 of interest, are as follows:
Year ending June 30,
2003 $ 1,816,092
2004 2,196,092
2005 4,147,548
2006 1,619,918
2007 9,217,502
Thereafter 12,754,462
Total $31,751,614
Note 12 - Obligations Under Leases
Capital Leases—The County has acquired machinery and equipment under the provisions of various long-term
lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase
option or a transfer of ownership by the end of the lease term. Accordingly, such assets totaling $941,870 at June
30, 2002, are capitalized in the General Fixed Assets Account Group.
The future minimum lease payments under the capital leases, together with the present value of the net minimum
lease payments at June 30, 2002, were as follows:
General
Long-Term Debt
Account Group
Year ending June 30,
2003 $179,840
2004 113,360
Total minimum lease payments 293,200
Less amount representing interest 14,993
Present value of net minimum lease
payments $278,207
Operating Leases—The County leases office space and office equipment under the provisions of various long-term
lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of
the operating leases were $297,851 for the year ended June 30, 2002. The operating leases have remaining
noncancelable lease terms of 1-3 years and provide renewal options.
The future minimum rental payments required under the operating leases at June 30, 2002, were as follows:
Special
Revenue
Funds
Year ending June 30,
2003 $ 88,341
2004 18,378
Total minimum payments required $ 106,719
Note 13 - Claims and Judgments Payable
The County is a defendant in various legal proceedings incidental to the County’s normal operations. In the opinion
of the County Attorney and County management, probable losses not covered by insurance from these proceedings
total $783,888, which have been accrued as a liability in the General Long-Term Debt Account Group.
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
22
Note 14 - Risk Management
The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. These risks of loss are accounted for and financed by
the following described insurance coverage and internal risk management program.
The Arizona Counties Workers’ Compensation Pool is a public entity risk pool currently composed of 11 member
counties. The pool provides member counties with workers’ compensation coverage, as required by law, and risk
management services. The County is responsible for paying a premium, based on an experience rating formula that
allocates pool expenditures and liabilities among the members.
The Arizona Counties Workers’ Compensation Pool receives an independent audit annually and an audit by the
Arizona Department of Insurance triennially. It accrues liabilities for losses that have been incurred but not reported.
These liabilities are determined annually based on an independent actuarial valuation.
The County maintains a limited risk management program for general liability and property damage to finance
uninsured risks of loss up to $250,000 for each occurrence. The County purchases commercial insurance to cover
claims in excess of this amount up to $15,000,000 for each occurrence and $15,000,000 in aggregate for each year.
The County retains liability for covered losses that exceed these limits. Settled claims resulting from these risks
have not exceeded insurance coverage in the past three fiscal years.
Effective January 1, 2000, the Employee Benefit Fund (an Internal Service Fund) accounts for the financing of the
Yuma County Employee Benefit Trust (YCEBT) which is a self funded benefit plan established to provide certain
health benefits (comprehensive major medical) to eligible employees and their dependents. Under this program, the
Trust provides coverage up to a lifetime maximum of $1,000,000 per individual. The uninsured risk of loss per
individual is $100,000 per plan year (January 1 through December 31) not to exceed an annual aggregate of
$2,939,860 (based on assumed enrollment during this plan year; aggregate claims liability limit only, does not
include fixed expenses associated with the YCEBT). The Fund purchases commercial insurance (reinsurance) for
claims in excess of this coverage.
The insurance claims payable liability of the Trust totaling $513,600 at June 30, 2002, is the estimated ultimate cost
of settling claims that have been reported but not settled and claims that have been incurred but not reported. This
estimate is based on actuarial estimates. Changes in the Trust’s claims payables for the years ended June 30,
2001and 2002, were as follows:
2002 2001
Claims payable, beginning of year $ 850,000 $ 57,295
Current-year claims and changes in estimates 3,381,140 4,864,026
Claim payments (3,717,540) (4,071,321)
Claims payable, end of year $ 513,600 $ 850,000
Note 15 - Changes in Long-Term Liabilities
A summary of changes in the liabilities reported in the General Long-Term Debt Account Group follows.
Balance
July 1, 2001
(as restated) Additions Reductions
Balance
June 30, 2002
Accrued payroll and employee benefits $ 2,820,341 $ 393,480 - $ 3,213,821
Claims and judgments payable 911,535 - 127,647 783,888
Obligations under capital leases 223,114 312,842 257,749 278,207
Revenue bonds payable 15,535,000 - 1,075,000 14,460,000
Certificates of participation payable 26,725,000 - 920,000 25,805,000
Special assessment bonds payable 631,368 76,662 91,100 616,930
Rural Development Loan 220,570 - - 220,570
Total Long-Term Liabilities $47,066,928 $ 782,984 $2,471,496 $ 45,378,416
Yuma County, Arizona
Notes to Financial Statements
June 30, 2002
23
Note16 - Retirement Plans
Plan Descriptions—The County contributes to the four plans described below. Benefits are established by state
statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium
benefits.
The Arizona State Retirement System (ASRS) administers a cost-sharing multiple-employer defined benefit pension
plan that covers general employees of the County. The ASRS is governed by the Arizona State Retirement System
Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2.
The Public Safety Personnel Retirement System (PSPRS) is an agent multiple-employer defined benefit pension
plan that covers public safety personnel who are regularly assigned hazardous duty as employees of the State of
Arizona or one of its political subdivisions. The PSPRS, acting as a common investment and administrative agent, is
governed by a five-member board, known as The Fund Manager, and 189 local boards according to the provisions
of A.R.S. Title 38, Chapter 5, Article 4.
The Corrections Officer Retirement Plan (CORP) is an agent multiple-employer defined benefit pension plan that
covers certain employees of the State of Arizona, Departments of Corrections and Juvenile Corrections, and County
employees whose primary duties require direct inmate contact. The CORP is governed by The Fund Manager of
PSPRS and 12 local boards according to the provisions of A.R.S. Title 38, Chapter 5, Article 6.
The Elected Officials Retirement Plan (EORP) is a cost-sharing multiple-employer defined benefit pension plan that
covers elected officials and judges of certain state and local governments. The EORP is governed by The Fund
Manager of PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 3.
Each plan issues a publicly available financial report that includes its financial statements and required
supplementary information. A report may be obtained by writing or calling the applicable plan.
ASRS PSPRS, CORP, and EORP
3300 N. Central Ave.
P.O. Box 33910
Phoenix, AZ 85067-3910
1020 E. Missouri Ave.
Phoenix, AZ 85014
(602) 240-2000 or (800) 621-3778 (602) 255-5575
Funding Policy—The Arizona State Legislature establishes and may amend active plan members’ and the County’s
contribution rates.
Cost-sharing plans—For the year ended June 30, 2002, active ASRS members and the County were each required
by statute to contribute at the actuarially determined rate of 2.49 percent (2.00 percent retirement and 0.49 percent
long-term disability) of the members’ annual covered payroll. The County’s contributions to ASRS for the years
ended June 30, 2002, 2001, and 2000 were $700,704, $687,150, and $624,374, respectively, which were equal to
the required contributions for the year.
In addition, active EORP members were required by statute to contribute 7 percent of the members’ annual covered
payroll. The County was required to remit a designated portion of court docket fees but was not required to
contribute additional contributions of the member’s annual covered payroll, as determined by actuarial valuation.
The County’s contributions to EORP for the years ended June 30, 2002, 2001, and 2000 were $0, $72,177, and
$56,215, respectively, which were equal to the required contributions for the year.
Agent plans—For the year ended June 30, 2002, active PSPRS members were required by statute to co