Coconino County Community College District report on audit of annual budgeted expenditure limitation report

              COCONINO COUNTY, ARIZONA
Report on Audit of Annual
Expenditure Limitation Report
Year Ended June 30, 2001
COCONINO COUNTY
Report on Audit of Annual Expenditure Limitation Report
Year Ended June 30, 2001
Table of Contents Page
Independent Auditors' Report............................................................................................ 1
Annual Expenditure Limitation Report – Part I................................................................ 2
Annual Expenditure Limitation Report – Part II............................................................... 3
Annual Expenditure Limitation Report – Reconciliation ................................................. 4
Notes to Annual Expenditure Limitation Report .............................................................. 5
Independent Auditors’ Report
The Auditor General of the State of Arizona
The Board of Supervisors of
Coconino County, Arizona
We have audited the accompanying Annual Expenditure Limitation Report of Coconino County for
the year ended June 30, 2001. This report is the responsibility of the County's management. Our
responsibility is to express an opinion on this report based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the report is free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the report. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall report presentation. We believe that our audit provides a reasonable basis for our opinion.
The accompanying Annual Expenditure Limitation Report was prepared for the purpose of
complying with the uniform expenditure reporting system as discussed in Note 1, and is not
intended to be a presentation in conformity with U.S. generally accepted accounting principles.
In our opinion, the Annual Expenditure Limitation Report of Coconino County for the year ended
June 30, 2001, referred to above presents fairly, in all material respects, the information required by
the uniform expenditure reporting system on the basis of accounting described in Note 1.
This report is intended solely for the information and use of the members of the Arizona State
Legislature and the Board of Supervisors, and for filing with the Auditor General of the State of
Arizona and is not intended to be and should not be used by anyone other than these specified
parties. However, this report is a matter of public record and its distribution is not limited.
Fester & Chapman P.C.
Certified Public Accountants
January 16, 2003
2
COCONINO COUNTY
Annual Expenditure Limitation Report – Part I
Year Ended June 30, 2001
1. Economic Estimates Commission expenditure limitation $ 38,572,788
2. Amount subject to the expenditure limitation
(total amount from Part II, Line C) 39,022,589
3. Amount in excess of the expenditure limitation $ (449,801)
The County claimed just enough exclusions to have the amount in excess of the
expenditure limitation to be an amount that allows the County to take full advantage
of the reduced penalty under House Bill 2563, Laws 2000, Chapter 351.
I hereby certify, to the best of my knowledge and belief, that the information contained in this
report is accurate and in accordance with the requirements of the uniform expenditure reporting
system.
Signature of Chief Fiscal Officer:
Name and Title:
Telephone Number: (928) 779-6895 Date: January 23, 2003
Michael F. Townsend, Director of Finance
See accompanying notes to report.
3
COCONINO COUNTY
Annual Expenditure Limitation Report – Part II
Year Ended June 30, 2001
Special Debt Capital
General Revenue Service Projects
Description Fund Funds Funds Funds Total
A. Amounts reported on the
Reconciliation, Line C $ 29,229,472 $ 30,379,112 $ 2,890,251 $ 10,605,959 $ 73,104,794
B. Less exclusions claimed:
Debt service requirements on bonded
indebtedness (Note 2) 2,890,251 2,890,251
Proceeds from other long-term obligations
(Note 3) 905,482 7,588,736 8,494,218
Dividends, interest, and gains on the
sale or redemption of investment
securities (Note 4) 7,833 83,898 8,959 100,690
Trustee or custodian (Note 5) 744,609 448,202 1,192,811
Grants and aid from the federal
government (Note 6) 1,130,598 4,546,626 5,677,224
Grants, aid, contributions, or gifts from
a private agency, organization, or
individual, except amounts received
in lieu of taxes (Note 7) 237,222 135,807 373,029
Amounts received from the State of
Arizona (Note 6) 6,499,206 6,499,206
Highway user revenues in excess of those
received in fiscal year 1979-80 (Note 6) 5,614,778 5,614,778
Contracts with other political
subdivisions (Note 8) 31,407 1,075,127 1,106,534
Refunds, reimbursements, and
other recoveries (Note 9) 111,952 111,952
Prior years carryforward (Note 10) 64,232 814,982 1,142,298 2,021,512
Total exclusions claimed 2,090,631 20,225,523 2,890,251 8,875,800 34,082,205
C. Amounts subject to the
expenditure limitation $ 27,138,841 $ 10,153,589 $ 0 $ 1,730,159 $ 39,022,589
See accompanying notes to report.
4
COCONINO COUNTY
Annual Expenditure Limitation Report – Reconciliation
Year Ended June 30, 2001
Special Debt Capital
General Revenue Service Projects
Description Fund Funds Funds Fund Total
A. Total expenditures reported within the
general purpose financial statements $ 30,668,576 $ 43,532,020 $ 3,077,340 $ 13,855,406 $ 91,133,342
B. Deductions:
Expenditures of separate legal entities
established under Arizona Revised
Statutes (A.R.S.) (Note 11) 13,152,908 187,089 3,249,447 16,589,444
Long-term care contributions withheld
by the State Treasurer (Note 12) 1,126,740 1,126,740
Charges to other funds in excess of
Internal Service Fund expenses (Note 13) 312,364 312,364
Total deductions 1,439,104 13,152,908 187,089 3,249,447 18,028,548
C. Amounts reported on Part II, Line A $ 29,229,472 $ 30,379,112 $ 2,890,251 $ 10,605,959 $ 73,104,794
See accompanying notes to report.
5
COCONINO COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2001
Note 1 – Summary of Significant Accounting Policies
The Annual Expenditure Limitation Report (AELR) is presented on the basis of accounting
prescribed by the uniform expenditure reporting system (UERS), as required by Arizona
Revised Statutes §41-1279.07, which excludes expenditures of certain revenues specified in
the Arizona Constitution, Article IX, §20 from the total expenditures reported in the annual
general purpose financial statements.
In accordance with the UERS requirements, a note to the AELR is presented below for any
exclusion claimed on Part II and each deduction in the Reconciliation that cannot be traced
directly to an amount reported in the annual general purpose financial statements. All
references to financial statement amounts in the following notes refer to the Combined
Statement of Revenues, Expenditures, and Changes in Fund Balances–All Governmental
Fund Types for the General, Special Revenue, Debt Service, and Capital Projects Funds.
Note 2 – The exclusion claimed for debt service on bonded indebtedness of $2,890,251 in the Debt
Service Fund consists of principal retirement and interest expense.
Note 3 – The exclusions claimed for proceeds from other long-term obligations of $905,482 and
$7,588,736 in the Special Revenue and Capital Projects Funds, respectively, represents
expenditures made from proceeds of certificates of participation issued during the years
ended June 30, 2001 and 1998, respectively, for capital improvements.
Note 4 – The following schedule presents exclusions claimed for dividends, interest, and gains on
the sale or redemption of investment securities of $7,833, $83,898 and $8,959 in the
General, Special Revenue and Capital Project Funds, and interest carried forward to future
years in the General, Special Revenue, Debt Service and Capital Project Funds.
Special Debt Capital
General Revenue Service Projects
Description Fund Funds Funds Funds
Interest on investments $ 1,033,188 $ 2,077,838 $ 1,471,866 $ 290,395
Interest on delinquent taxes reported as
tax revenue 503,653
Separate legal entities' interest on
investments (188,666) (39,311) (1,928)
Carryforwards lost (90,329) (360,124) (151,282) (184,592)
Interest carried forward to future years (1,438,679) (1,445,150) (1,281,273) (94,916)
Total exclusions claimed $ 7,833 $ 83,898 $ $ 8,959
6
COCONINO COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2001
Note 5 – The exclusion claimed for trustee or custodian in the General Fund consists of $744,609 in
contributions by the County to the Arizona Health Care Cost Containment System for acute
care recorded as health expenditures. The exclusion claimed for trustee or custodian in the
Special Revenue Funds consists of $448,202 in antiracketeering expenditures, benefiting
other jurisdictions, that were recorded as general government expenditures.
Note 6 – The following schedule presents revenues from which exclusions have been claimed for
federal grants and aid, amounts received from the State of Arizona, and highway user
revenues in the General and Special Revenue Funds.
Amount Amount
Amount Carried Amount Carried
Description Revenues Excluded Forward Revenues Excluded Forward
Grants and aid from the
federal government $ 1,249,740 $ 1,130,598 $ 119,142 $ 5,189,208 $ 4,546,626 $ 642,582
Amounts received from
the State of Arizona 1,049,242 1,049,242 6,834,098 6,499,206 334,892
Highway user revenues in
excess of those received
in fiscal year 1979-1980 8,286,801 5,614,778 2,672,023
Other revenues -
(nonexcludable) 14,873,123 4,683,006
Total intergovernmental
revenues as reported in
the general purpose
financial statements $ 17,172,105 $ 1,130,598 $ 24,993,113 $ 16,660,610
General Fund Special Revenue Funds
7
COCONINO COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2001
Note 7 – The exclusions claimed for grants, aids, contributions, or gifts made from a private agency,
organization, or individual of $237,222 and $135,807 in the Special Revenue and Capital
Projects Funds, respectively, are reported in miscellaneous revenues and in the following
categories of expenditures in the general purpose financial statements:
Special Capital
Revenue Projects
Description Funds Funds
Health $ 218,080
Welfare 19,142
Capital outlay $ 135,807
Total $ 237,222 $ 135,807
Note 8 – The exclusions for contracts with other political subdivisions of $31,407 and $1,075,127
consist of charges for services expended in the General Fund and Special Revenues Funds,
respectively.
Note 9 – The exclusion claimed for refunds, reimbursements, and other recoveries of $111,952 in
the General Fund was reported in miscellaneous revenues and general government
expenditures in the general purpose financial statements.
8
COCONINO COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2001
Note 10 – Prior year carryforwards consist of constitutionally excludable revenues unexpended in the
year of receipt that have been accumulated and were expended in the current year as
follows:
Special Capital
General Revenue Projects
Description Fund Funds Funds
Dividends, interest, and gains on the sale or
redemption of investment securities $ 41,438 $ 88,767
Trustee or custodian 26,053
Grants and aid from the federal government 223,120
Grants, aids, contributions, or gifts from a private
agency, organization, or individual, except
amounts received in lieu of taxes 665
Amounts received from the State of Arizona 468,450 1,053,531
Refunds, reimbursements, and other recoveries $ 64,232 2,094
Contracts with other political subdivisions 53,162
Total prior years carryforward expended $ 64,232 $ 814,982 $ 1,142,298
9
COCONINO COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2001
Note 11 – The deduction of $16,589,444 for separate legal entities established under Arizona Revised
Statutes consists of expenditures of special assessment districts included within the County’s
reporting entity but not included in the Economic Estimates Commission base limit
calculations, and is reported in the following categories in the general purpose financial
statements:
Special Debt Capital
Revenue Service Projects
Description Funds Funds Funds
Public safety $ 8,151,791
Sanitation 822,160
Culture and recreation 1,935,582
Highways and streets 9,653
Capital outlay $ 3,249,447
Principal retirement 1,220,000 $ 132,800
Interest and fiscal charges 1,013,722 54,289
Total $ 13,152,908 $ 187,089 $ 3,249,447
Note 12 – The amount of transaction privilege taxes withheld by the State Treasurer to meet the
County’s share of long-term care costs was reported as a revenue and an offsetting
expenditure in the County’s general purpose financial statements. Consequently, this
expenditure has been deducted on the Reconciliation.
Note 13 – The $312,364 of charges to other funds in excess of Internal Service Fund expenses
consists of charges for services revenues less total operating expenses of the Internal
Service Fund.