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

              Expenditure Limitation Report
A REPORT
TO THE
ARIZONA LEGISLATURE
Maricopa County
Community College
District
Year Ended June 30, 2007
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:
Office of the Auditor General
2910 N. 44th Street, Suite 410 • Phoenix, AZ 85018 • (602) 553-0333
Additionally, many of our reports can be found in electronic format at:
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Maricopa County Community College District
Report on Audit of Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2007
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, 2007. 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, 2007, 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, 2008
2
Maricopa County Community College District
Annual Budgeted Expenditure Limitation Report—Part I
Year Ended June 30, 2007
1. Economic Estimates Commission expenditure limitation
$412,695,296
2. Total amount subject to the expenditure limitation
(from Part II, Line C)
$376,669,596
3. Less expenditures of monies received pursuant to Arizona
Revised Statutes §15-1472 (workforce development)
8,266,078
4. Adjusted amount subject to the expenditure limitation
368,403,518
5. Amount under the expenditure limitation $ 44,291,778
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: Debra Thompson, Vice Chancellor for Business Services
Telephone Number: (480) 731-8510 Date: February 28, 2008
See accompanying notes to report.
Auxiliary Retirement of
General Enterprises Restricted Unexpended Indebtedness Total
Description
A. Total budgeted expenditures $ 460,018,040 $ 70,350,173 $ 89,194,832 $ 110,389,864 $ 49,567,734 $ 779,520,643
B. Less exclusions claimed:
Debt service requirements on bonded
indebtedness (Note 2) 49,567,734 49,567,734
Debt service requirements on other long-term
obligations (Note 2) 162,441 162,441
Dividends, interest, and gains on the sale or redemption
of investment securities (Note 3) 5,918,238 2,003,677 7,921,915
Grants and aid from the federal government (Note 4) 60,106,263 60,106,263
Grants, aid, contributions, or gifts from a private agency,
organization, or individual, except amounts received in
lieu of taxes (Note 5) 227,226 16,720,853 16,948,079
Amounts received from the State of Arizona for the purchase
of land, and the purchase or construction of buildings or
improvements (Note 6) 9,884,517 9,884,517
Contracts with other political subdivisions (Note 4) 3,609,313 1,553,699 5,163,012
Tuition and fees (Note 7) 117,082,492 41,910,897 158,993,389
Prior years carryforward (Note 8) 94,103,697 94,103,697
Total exclusions claimed 123,000,730 47,751,113 78,380,815 104,150,655 49,567,734 402,851,047
C. Amounts subject to the expenditure limitation $ 337,017,310 $ 22,599,060 $ 10,814,017 $ 6,239,209 $ - $ 376,669,596
See accompanying notes to report.
3
Unrestricted
Current Funds Plant Funds
Maricopa County Community College District
Annual Budgeted Expenditure Limitation Report—Part II
Year Ended June 30, 2007
Maricopa County Community College District
Notes to Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2007
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 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 – Exclusions claimed for debt service requirements on bonded indebtedness and debt service
requirements on other long-term obligations are $49,567,734 and $162,441, respectively. Both
amounts are included in the amounts reported as principal paid on capital debt and lease and
interest paid on capital debt and lease on the Statement of Cash Flows—Primary Government.
Note 3 – The exclusion claimed for dividends, interest, and gains on the sale or redemption of
investment securities consists of interest on investments expended, which was reported as
investment earnings, net of investment expense on the Statement of Revenues, Expenses, and
Changes in Net Assets—Primary Government. Of the remaining balance of $13,345,058, only
$12,314,420 was carried forward to future years because $1,030,638 was not eligible to be
carried forward under the expenditure limitation requirements.
Note 4 – The following schedule presents revenues from which exclusions have been claimed for grants
and aid from the federal government and contracts with other political subdivisions:
Maricopa County Community College District
Notes to Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2007
5
Statement of Revenues, Expenses,
and Changes in Net Assets—
Primary Government:
ABELR:
Government grants and
contracts
$70,062,675
Grants and aid from the federal
government
Contracts with other political
subdivisions
$60,106,263
5,163,012
Total exclusion claimed 65,269,275
Other revenues
(nonexcludable)
4,185,452
Amount carried forward 607,948
Total $70,062,675 Total $70,062,675
Note 5 – The exclusions claimed for grants, aid, contributions, or gifts from a private agency,
organization, or individual, except amounts received in lieu of taxes consists of amounts
expended from private grants and contracts and private gifts reported on the Statement of
Revenues, Expenses, and Changes in Net Assets—Primary Government. Of the financial
statement balance, $3,211 was recorded in the student loan fund and not claimed as an
exclusion because it is not subject to the expenditure limitation.
Note 6 – Amounts received from the State of Arizona for the purchase of land, and the purchase or
construction of buildings or improvements of $11,421,900 are included in capital
appropriations reported on the Statement of Revenues, Expenses, and Changes in Net
Assets—Primary Government. Of these excludable revenues, only $9,884,517 was expended
and claimed as an exclusion. The remaining $1,537,383 has been carried forward to future
years.
Note 7 – The District does not budget tuition and fees revenues net of scholarship allowances. Of the
gross tuition and fees of $175,073,461 reported on the Statement of Revenues, Expenses, and
Changes in Net Assets—Primary Government, only $158,993,389 was expended and claimed
as an exclusion. The remaining $16,080,072 has been carried forward to future years.
Note 8 – Prior years carryforward of $94,103,697 in the Unexpended Plant Fund consists of
constitutionally excludable bond proceeds unexpended in the year of receipt that were
accumulated and expended in the current year.