Maricopa county community college district report on examination of annual budgeted expenditure limitation

              Annual Budgeted Expenditure Limitation Report
A REPORT
TO THE
ARIZONA LEGISLATURE
Maricopa County
Community College District
Year Ended June 30, 2002
Financial Audit Division
Debra K. Davenport
Auditor General
The Auditor General is appointed by the Joint Legislative Audit Committee, a bipartisan committee composed of five
senators and five representatives. Her mission is to provide independent and impartial information and specific
recommendations to improve the operations of state and local government entities. To this end, she provides financial
audits and accounting services to the State and political subdivisions, investigates possible misuse of public monies, and
conducts performance audits of school districts, state agencies, and the programs they administer.
Copies of the Auditor General’s reports are free.
You may request them by contacting us at:
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2910 N. 44th Street, Suite 410 • Phoenix, AZ 85018 • (602) 553-0333
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Maricopa County Community College District
Report on Audit of Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2002
Table of Contents Page
Independent Auditors' Report 1
Annual Budgeted Expenditure Limitation Report—Part I 2
Annual Budgeted Expenditure Limitation Report—Part II 3
Notes to Annual Budgeted Expenditure Limitation Report 4
2910 NORTH 44th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553 -0333 • FAX (602) 553-0051
DEBRA K. DAVENPORT, CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL WILLIAM THOMSON
DEPUTY AUDITOR GENERAL
Independent Auditors' Report
Members of the Arizona State Legislature
The Governing Board of
Maricopa County Community College District
We have audited the accompanying Annual Budgeted Expenditure Limitation Report of Maricopa County
Community College District for the year ended June 30, 2002. This report is the responsibility of the
District'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 Budgeted 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 Budgeted Expenditure Limitation Report of Maricopa County Community
College District for the year ended June 30, 2002, 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 Governing Board, 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.
Dennis L. Mattheisen, CPA
Financial Audit Director
February 28, 2003
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Maricopa County Community College District
Annual Budgeted Expenditure Limitation Report—Part I
Year Ended June 30, 2002
1. Economic Estimates Commission expenditure limitation $253,260,557
2. Total amount subject to the expenditure limitation
(from Part II, Line C) $271,035,553
3. Less expenditures of monies received pursuant to Arizona
Revised Statutes §15-1472 (workforce development) 2,446,090
4. Adjusted amount subject to the expenditure limitation 268,589,463
5. Amount under (in excess of) the expenditure limitation $(15,328,906)
(The District claimed just enough exclusions to have the amount in excess of the expenditure limitation to
be an amount that allows the District to take full advantage of the reduced penalty under Senate Bill 1246,
Laws 2001, Chapter 362.)
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: Dr. Rufus Glasper, Ph.D., CPA, CGFM, Executive Vice Chancellor for Human Resources
and Administration
Telephone Number: (480) 731-8555 Date: February 28, 2003
See accompanying notes to report.
Maricopa County Community College District
Annual Budgeted Expenditure Limitation Report—Part II
Year Ended June 30, 2002
Current Funds Plant Funds
Unrestricted
Auxiliary Retirement of
General Enterprises Restricted Unexpended Indebtedness Total
Description
A. Total budgeted expenditures $ 320,504,456 $ 45,083,226 $ 71,058,792 $ 41,437,560 $ 34,022,506 $ 512,106,540
B. Less exclusions claimed:
Bond proceeds (Note 2) 27,790,242 27,790,242
Debt service requirements on bonded
indebtedness (Note 3) 34,022,506 34,022,506
Debt service requirements on other long-term
obligations (Note 3) 83,167 83,167
Dividends, interest, and gains on the sale or redemption
of investment securities (Note 4) 3,065,003 1,151,309 284,660 3,701,112 8,202,084
Trustee or custodian (Note 5) 701,398 701,398
Grants and aid from the federal government (Note 6) 44,679,341 44,679,341
Grants, aid, contributions, or gifts from a private agency,
organization, or individual, except amounts received in
lieu of taxes (Note 7) 166,260 11,453,953 124,745 11,744,958
Amounts received from the State of Arizona for the
purchase of land, and the purchase or construction of
buildings or improvements (Note 8) 8,237,400 8,237,400
Contracts with other political subdivisions (Note 6) 1,420,741 1,420,741
Tuition and fees (Note 9) 64,699,819 35,231,805 2,932,398 102,864,022
Prior years carryforward (Note 10) 1,325,128 1,325,128
Total exclusions claimed 67,764,822 36,549,374 61,472,491 41,261,794 34,022,506 241,070,987
C. Amounts subject to the expenditure limitation $ 252,739,634 $ 8,533,852 $ 9,586,301 $ 175,766 $ - $ 271,035,553
See accompanying notes to report.
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Maricopa County Community College District
Notes to Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2002
4
Note 1 - Summary of Significant Accounting Policies
The Annual Budgeted Expenditure Limitation Report (ABELR) is presented on the basis of
accounting prescribed by the uniform expenditure reporting system (UERS), as required by
Arizona Revised Statutes (A.R.S.) §41-1279.07, which excludes expenditures of certain
revenues specified in the Arizona Constitution, Article IX, §21 from the total budgeted
expenditures.
The information reported in both the ABELR and the financial statements is derived from the
same underlying accounting data. However, the formats of the ABELR and the financial
statements differ. The ABELR presents budgeted expenditures, exclusions, and amounts
subject to the limitation by fund type as required by A.R.S. §41-1279.07. The financial
statements present the net assets, changes in net assets, and cash flows for the District as
a whole in accordance with U.S. generally accepted accounting principles.
In accordance with the UERS requirements, a note to the ABELR is presented below for any
exclusion reported in the Total column on Part II that cannot be traced directly to an amount
reported in the annual financial statements.
Note 2 - Of the $30,892,576 reported as a purchase of capital assets on the Statement of Cash
Flows, only $27,790,242 was expended from bond proceeds and claimed as an exclusion.
The remaining $3,102,334 has been carried forward to future years.
Note 3 - Exclusions claimed for debt service requirements on bonded indebtedness and debt
service requirements on other long-term obligations are $34,022,506 and $83,167,
respectively. Both amounts are included in the amounts reported as principal paid on
capital debt and leases and interest paid on capital debt and leases on the Statement of
Cash Flows.
Note 4 - The exclusion claimed for dividends, interest, and gains on the sale or redemption of
investment securities is included in investment income, net of investment expense reported
on the Statement of Revenues, Expenses, and Changes in Net Assets.
Note 5 - The exclusion claimed for trustee or custodian is included in state appropriations reported
on the Statement of Revenues, Expenses, and Changes in Net Assets.
Note 6 - Government grants and contracts revenues of $50,495,322 reported on the Statement of
Revenues, Expenses, and Changes in Net Assets include $44,679,341 from federal grants
and contracts and $1,420,741 from state appropriations received pursuant to a contract with
the State Board of Education for operating a charter school that is not a legal entity separate
from the District.
Maricopa County Community College District
Notes to Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2002
5
Note 7 - Exclusions claimed for grants, aid, contributions, or gifts from a private agency,
organization, or individual, in the Auxiliary Enterprises and Restricted Funds are included in
the amounts reported as private grants and contracts and private gifts on the Statement of
Revenues, Expenses, and Changes in Net Assets. The exclusion claimed in the
Unexpended Plant Fund is included in the amount reported as capital grants and gifts on
the Statement of Revenues, Expenses, and Changes in Net Assets.
Note 8 - Amounts received from the State of Arizona for the purchase of land and the construction of
buildings or improvements of $8,237,400 are included in capital appropriations reported on
the Statement of Revenues, Expenses, and Changes in Net Assets.
Note 9 - Exclusions claimed for tuition and fees include the amount of scholarship allowance
reported on the Statement of Revenues, Expenses, and Changes in Net Assets.
Note 10 - Prior years carryforward of $1,325,128 in the Unexpended Plant Fund consists of
constitutionally excludable revenues unexpended in the year of receipt that have been
accumulated and were expended in the current year.