Navajo County single audit reporting package year ended...

              NAVAJO COUNTY, ARIZONA
Single Audit Reporting Package
June 30, 2001
NAVAJO COUNTY, ARIZONA
Single Audit Reporting Package
June 30, 2001
TABLE OF CONTENTS
Page
Report on Audit of General Purpose Financial Statements
Independent Auditors' Report...........................................................................................................................................1
Combined Balance Sheet–All Fund Types and Account Groups....................................................................................4
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
All Governmental Fund Types and Expendable Trust Fund.....................................................................................6
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual–General and Special Revenue Fund Types................................................................................7
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual–Debt Service and Capital Projects Fund Types...................................................................... 10
Combining Statement of Net Assets–Investment Trust Funds......................................................................................11
Combining Statement of Changes in Net Assets–Investment Trust Funds ..................................................................12
Notes to Financial Statement………………………………………………………………………………….…....13
Supplementary Information
Schedule of Expenditures of Federal Awards………………………………………………………………..34
Notes to the Schedule of Expenditures of Federal Awards…………………………………….………….. ...36
Reports on Compliance and Internal Control
Independent Auditors’ Report on Compliance and on Internal Control over Financial Reporting
Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government
Auditing Standards………………………………………………………………………………………..…37
Independent Auditors’ Report on Compliance with Requirements Applicable to Each
Major Program and on Internal Control Over Compliance in Accordance with
OMB Circular A-133………………………………………………………………………………………...39
NAVAJO COUNTY, ARIZONA
Single Audit Reporting Package
June 30, 2001
TABLE OF CONTENTS
Page
Schedule of Findings and Questioned Costs
Summary of Auditors’ Results………………………………………………………………………………..41
Financial Statement Findings………………………………………………………………………………....42
Federal Award Findings and Questioned Costs………………………………………………………………45
County Responses
Corrective Action Plan……………………………………………………………………………………………46
Schedule of Prior Audit Findings…………………………………………………………………………………51
Page Two
In accordance with Government Auditing Standards, we have also issued our report dated April 23, 2003, on our
consideration of the County’s internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this report in considering
the results of our audit.
April 23, 2003
2
THIS PAGE LEFT BLANK INTENTIONALLY
3
NAVAJO COUNTY
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 2001
Fiduciary Account
Governmental Fund Types Fund Type Group
Trust General
Special Debt Capital and Long-Term
Assets General Revenue Service Projects Agency Debt
Cash in bank and on hand $ 300,353 $ 7,180 $ 2 32,731
Cash and investments held by
County Treasurer 10,902,810 $ 624,901 $ 2,685,180 1 05,553,467
Cash and investments held by trustee 2,400,213
Investments 5 21,845
Receivables:
Property taxes 212,519 36,124
Special assessments 3,046,913 77,125
Accounts 334,003 5,309 9,060
Accrued interest 17,404 1,690 8 66,825
Due from:
Other funds 959,115 3,275 20,645 2 9,169
Other governments 1,395,712 2,294,765 1,165,193 4 0,870
Inventories 53,575 293,196
Prepaid items 47,089 1,334
Amount available in Debt
Service Fund $ 646,500
Amount to be provided for
retirement of general
long-term debt 10,747,904
Total assets $ 2,343,251 $ 14,517,237 $ 3,676,779 $ 6,357,416 $ 107,244,907 $ 11,394,404
(Continued)
The accompanying notes are an integral part of this statement.
4
NAVAJO COUNTY
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 2001
(Continued)
Fiduciary Account
Governmental Fund Types Fund Type Group
Trust General
Special Debt Capital and Long-Term
Liabilities and Fund Equity General Revenue Service Projects Agency Debt
Liabilities:
Accounts payable $ 708,988 $ 1,709,275 $ 651,933 $ 2 7,967
Accrued payroll and employee benefits 30,681 19,399 $ 1,197,010
Due to other funds 925,543 8 6,661
Deposits held for others 204,765 6,479 7 13,527
Claims and judgments payable 55,902
Insurance claims payable 622,233
Notes payable 175,922
Revenue bonds payable 7,115,000
Special assessment bonds with
governmental commitment payable 2,889,106
Landfill closure and postclosure care
costs payable 17,366
Deferred revenues 134,801 24,155 $ 3,030,279 46,211
Total liabilities 2,682,913 1,759,308 3,030,279 698,144 828,155 11,394,404
Fund equity:
Fund balances:
Reserved for inventories 53,575 293,196
Reserved for prepaid items 47,089 1,334
Reserved for investment trust participants 1 05,618,066
Unreserved (440,326) 12,463,399 646,500 5,659,272 798,686
Total fund equity (339,662) 12,757,929 646,500 5,659,272 106,416,752
Total liabilities and equity $ 2,343,251 $ 14,517,237 $ 3,676,779 $ 6,357,416 $ 107,244,907 $ 11,394,404
The accompanying notes are an integral part of this statement.
5
NAVAJO COUNTY
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
All Governmental Fund Types and Expendable Trust Fund
Year Ended June 30, 2001
Fiduciary
Governmental Fund Types Fund Type
Special Debt Capital Expendable
General Revenue Service Projects Trust
Revenues:
Taxes $ 4,645,767 $ 2,051,131
Special assessments 245,774 $ 537,262 $ 970,165
Licenses and permits 672,298
Intergovernmental 15,757,901 13,623,858 3,297,996
Charges for services 920,852 557,697
Fines and forfeits 705,617 2 5,711
Investment income 496,259 569,454 7 0,756 537,016 $ 18,633
Miscellaneous 216,138 522,039 3,086 300,000
Total revenues 23,414,832 17,595,664 608,018 4,808,263 318,633
Expenditures:
Current:
General government 12,517,521 2,427,717 4 0,547
Public safety 7,328,661 2,530,574
Highways and streets 8,727,727
Sanitation 619,173
Health 535,138 776,830
Welfare 3,336,489
Culture and recreation 130,390 270,630
Education 260,709
Capital outlay 9,245,977
Debt service:
Principal retirement 554,020
Interest and fiscal charges . 509,702
Total expenditures 24,728,081 14,733,478 1,063,722 9,245,977 40,547
Excess of revenues over (under)
expenditures (1,313,249) 2,862,186 (455,704) (4,437,714) 278,086
Other financing sources (uses):
Operating transfers in 1,015,484 759,846 300,097 306,981
Operating transfers out ( 352,996) ( 1,171,288) (6,931) ( 851,193)
Special assessment bond proceeds 220,938
Total other financing sources (uses) 662,488 (411,442) 293,166 ( 323,274)
Excess of revenues and other
sources over (under) expenditures
and other uses ( 650,761) 2,450,744 ( 162,538) ( 4,760,988) 278,086
Fund balances, July 1, 2000 287,377 11,107,506 359,474 10,148,068 286,397
Increase (decrease) in reserve for
inventories 4 ,080 ( 68,306)
Increase (decrease) in reserve for
prepaid items 19,642 ( 10,259)
Residual equity transfers in (out) (721,756) 449,564 272,192
Fund balances, June 30, 2001 $ (339,662) $ 12,757,929 $ 646,500 $ 5,659,272 $ 564,483
The accompanying notes are an integral part of this statement.
6
NAVAJO COUNTY
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - General and Special Revenue Fund Types
Year Ended June 30, 2001
General Fund Special Revenue Funds
Budget Actual Variance Budget Actual Variance
Revenues:
Taxes $ 4,917,722 $ 4,645,767 $ ( 271,955) $ 1,323,845 $ 2,051,131 $ 727,286
Special assessments 245,774 245,774
Licenses and permits 501,855 672,298 170,443
Intergovernmental 15,511,690 15,757,901 246,211 13,643,846 13,623,858 (19,988)
Charges for services 916,425 920,852 4 ,427 429,370 557,697 128,327
Fines and forfeits 808,900 705,617 ( 103,283) 5 4,650 2 5,711 (28,939)
Investment income 400,000 496,259 9 6,259 100,000 569,454 469,454
Miscellaneous 964,225 216,138 (748,087) 449,219 522,039 72,820
Total revenues 24,020,817 23,414,832 (605,985) 16,000,930 17,595,664 1,594,734
Expenditures:
Current:
General government:
Board of Supervisors 684,845 619,444 6 5,401 280,000 167,728 112,272
County Manager 1,054,640 1,178,914 ( 124,274) 400,000 492,268 (92,268)
Buildings and grounds 1,135,615 1,190,459 (54,844)
Elections 304,030 372,527 (68,497)
Planning and building 537,185 598,942 (61,757)
Recorder 173,280 181,357 (8,077) 136,610 122,303 1 4,307
Voter registration 102,410 100,224 2 ,186
Assessor 8 35,965 910,174 (74,209) 1 1,912 (11,912)
MIS 3 42,050 344,469 (2,419)
Treasurer 325,065 339,801 (14,736) 1 0,000 1 2,967 (2,967)
Contingency 1,558,750 282,665 1,276,085
Legal Defender 262,340 254,275 8 ,065 4 ,815 6 ,742 (1,927)
Attorney 1,324,830 1,397,876 (73,046) 1,239,110 1,200,413 3 8,697
Superior Courts 1,045,885 1,748,594 ( 702,709) 216,380 273,764 (57,384)
Public Defenders 635,870 597,045 3 8,825 5 4,255 1 7,741 3 6,514
Clerk of Superior Court 604,670 672,180 (67,510) 114,210 3 ,184 111,026
Holbrook Justice Court 180,990 203,531 (22,541) 1 0,930 3 ,288 7 ,642
Winslow Justice Court 175,360 193,715 (18,355) 8 ,380 4 33 7 ,947
Snowflake Justice Court 224,080 238,707 (14,627) 8 ,500 8 ,500
Show Low Justice Court 183,970 215,641 (31,671) 2 ,900 2 ,900
Pinetop Justice Court 174,445 220,184 (45,739) 9 ,500 1 ,972 7 ,528
Kayenta Justice Court 105,220 9 6,968 8 ,252 6 ,100 6 ,100
Holbrook Constable 9 ,760 1 1,836 (2,076)
Winslow Constable 1 0,685 1 3,949 (3,264)
Snowflake Constable 1 0,385 1 4,134 (3,749)
Show Low Constable 1 0,210 1 3,884 (3,674)
Pinetop Constable 1 0,275 1 2,614 (2,339)
Kayenta Constable 9 ,760 1 2,013 (2,253)
Miscellaneous 1,908,400 481,399 1,427,001 872,000 113,002 758,998
Total general government 13,940,970 12,517,521 1,423,449 3,373,690 2,427,717 945,973
(Continued)
The accompanying notes are an integral part of this statement.
7
NAVAJO COUNTY
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - General and Special Revenue Fund Types
Year Ended June 30, 2001
(Continued)
General Fund Special Revenue Funds
Budget Actual Variance Budget Actual Variance
Public Safety:
Juvenile probation $ 984,940 $ 1,131,303 $ ( 146,363) $ 1,577,040 $ 861,372 $ 715,668
Adult probation 500,205 458,349 4 1,856 1,192,590 1,099,456 9 3,134
Jail operations 2,425,545 2,636,054 ( 210,509) 185,000 183,059 1 ,941
Sheriff 2,697,655 3,102,955 (405,300) 555,675 386,687 168,988
Total public safety 6,608,345 7,328,661 (720,316) 3,510,305 2,530,574 979,731
Highways and streets:
Engineering and roads 13,882,260 8,727,727 5,154,533
Sanitation:
Sanitary landfill 35,700 619,173 (583,473)
Health:
Health services 459,660 535,138 (75,478) 895,820 776,830 118,990
Welfare:
Public fiduciary 269,640 287,472 (17,832)
Indigent health 3,105,990 3,049,017 56,973
Total welfare 3,375,630 3,336,489 39,141
Culture and recreation:
Library 267,780 101,430 166,350
Parks and recreation 127,225 130,390 (3,165) 11,375 169,200 (157,825)
Total culture and recreation 127,225 130,390 (3,165) 279,155 270,630 8,525
Education:
Superintendent of schools 237,435 260,709 (23,274)
Debt service:
Principal retirement
Interest and fiscal charges
Total debt service
Total expenditures 24,784,965 24,728,081 56,884 21,941,230 14,733,478 7,207,752
Excess of revenues over
(under) expenditures (764,148) (1,313,249) (549,101) (5,940,300) 2,862,186 8,802,486
Other financing sources (uses):
Operating transfers in 1,015,484 1,015,484 759,846 759,846
Operating transfers out (352,996) (352,996) (1,171,288) (1,171,288)
Total other financing uses 662,488 662,488 (411,442) (411,442)
The accompanying notes are an integral part of this statement. (Continued)
8
NAVAJO COUNTY
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - General and Special Revenue Fund Types
Year Ended June 30, 2001
(Continued)
General Fund Special Revenue Funds
Budget Actual Variance Budget Actual Variance
Excess of revenues and other
sources over (under) expendi-tures
and other uses $ ( 764,148) $ ( 650,761) $ 113,387 $ ( 5,940,300) $ 2,450,744 $ 8,391,044
Fund balances, July 1, 2000 764,148 287,377 ( 476,771) 5,940,300 11,107,506 5,167,206
Increase (decrease) in reserve for
inventories 4 ,080 4 ,080 (68,306) (68,306)
Increase (decrease) in reserve for
prepaid items 1 9,642 1 9,642 (10,259) (10,259)
Residual equity transfers out (721,756) (721,756)
Fund balances, June 30, 2001 $ $ (339,662) $ (339,662) $ $ 12,757,929 $ 12,757,929
The accompanying notes are an integral part of this statement.
9
NAVAJO COUNTY
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Debt Service and Capital Projects Fund Types
Year Ended June 30, 2001
Debt Service Fund Capital Projects Funds
Budget Actual Variance Budget Actual Variance
Revenues:
Taxes
Special assessments $ 475,795 $ 537,262 $ 61,467 $ 764,730 $ 970,165 $ 205,435
Intergovernmental 584,000 3,297,996 2,713,996
Investment income 70,756 70,756 537,016 537,016
Miscellaneous 3,086 3,086
Total revenues 475,795 608,018 132,223 1,348,730 4,808,263 3,459,533
Expenditures:
Capital outlay 1 0,856,440 9,245,977 1,610,463
Debt service:
Principal retirement 1,085,575 554,020 531,555
Interest and fiscal charges 1,004,290 509,702 494,588
Total debt service 2,089,865 1,063,722 1,026,143
Total expenditures 2,089,865 1,063,722 1,026,143 10,856,440 9,245,977 1,610,463
Excess of revenues over (under)
expenditures (1,614,070) (455,704) 1,158,366 (9,507,710) (4,437,714) 5,069,996
Other financing sources (uses):
Operating transfers in 300,097 300,097 306,981 306,981
Operating transfers out (6,931) (6,931) (851,193) (851,193)
Revenue bond proceeds
Special assessment bond proceeds 220,938 220,938
Total other financing sources 293,166 293,166 (323,274) (323,274)
Excess of revenues and other
sources over (under) expendi-tures
and other uses (1,614,070) (162,538) 1,451,532 (9,507,710) (4,760,988) 4,746,722
Fund balances, July 1, 2000 1,614,070 359,474 (1,254,596) 9,507,710 1 0,148,068 640,358
Residual equity transfers in 449,564 449,564 272,192 272,192
Fund balances, June 30, 2001 $ $ 646,500 $ 646,500 $ $ 5,659,272 $ 5,659,272
The accompanying notes are an integral part of this statement.
10
NAVAJO COUNTY
Combining Statement of Net Assets
Investment Trust Funds
June 30, 2001
Treasurer's Individual
Investment Investment
Pool Accounts Total
Assets
Cash and cash equivalents $ 1,260,388 $ 1,260,388
Investments 103,771,955 $ 521,845 104,293,800
Interest and dividends receivable 862,191 1,875 864,066
Total assets 105,894,534 523,720 106,418,254
Liabilities
Due to other funds 86,661 86,661
Deposits held for others 713,527 713,527
Total liabilities 800,188 800,188
Net assets held in trust $105,094,346 $ 523,720 $ 105,618,066
The accompanying notes are an integral part of this statement.
11
NAVAJO COUNTY
Combining Statement of Changes in Net Assets
Investment Trust Funds
Year Ended June 30, 2001
Treasurer's Individual
Investment Investment
Pool Accounts Total
Additions:
Contributions from participants $ 289,265,109 $ 289,265,109
Investment income:
Interest and dividend income 6,382,484 $ 306,939 6,689,423
Net investment income 6,382,484 306,939 6,689,423
Total additions 295,647,593 306,939 295,954,532
Deductions:
Distributions to participants 271,079,789 10,313,285 281,393,074
Total deductions 271,079,789 10,313,285 281,393,074
Net increase (decrease) in net assets 24,567,804 ( 10,006,346) 14,561,458
Net assets held in trust:
July 1, 2000 80,526,542 10,530,066 91,056,608
June 30, 2001 $105,094,346 $ 523,720 $ 105,618,066
The accompanying notes are an integral part of this statement.
12
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
13
Note 1 – Summary of Significant Accounting Policies
The accounting policies of Navajo County conform to U.S. 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 the
General Long-Term Debt account group 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 are 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 component unit discussed below has a June 30 year-end. The County has no discretely
presented component units.
Blended Component Units – A number of special districts and a nonprofit corporation have been
established within the County to serve unique needs. The special districts consist of various
improvement districts, and the non-profit corporation provides job training and educational services.
Although these special districts and the non-profit corporation are legally separate entities from the
County, the Board of Supervisors of the County serves as the Board of Directors of each of these
entities. Consequently, the financial data for these districts and the non-profit corporation are
blended with the data of the primary government and reported in the Special Revenue, Debt Service,
and Capital Projects Funds and the General Long-Term Debt Account Group of the County.
Separate financial statements of the blended component units are not prepared.
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. Account groups are reporting devices to account for certain assets and liabilities of the
governmental funds not recorded directly in those funds.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
14
Note 1 – Summary of Significant Accounting Policies (Cont'd)
B. Fund Accounting (Cont’d)
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.
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 Fund accounts 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.
2. Fiduciary Funds account for assets held by the County on behalf of others and include the
following fund types.
The Expendable Trust Fund is accounted for in essentially the same manner as the governmental
fund types, using the same measurement focus. Expendable trust funds account for assets where both
the principal and interest may be spent.
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.
3. 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 group.
The General Long-Term Debt Account Group accounts for all of the County’s long-term obligations.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
15
Note 1 – Summary of Significant Accounting Policies (Cont’d)
C. Basis of Accounting
The financial statements of the Governmental, Expendable Trust, 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 Fund.
Revenues susceptible to accrual prior to receipt are property 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
and miscellaneous revenues are not susceptible to accrual because generally they are not measurable
until received in cash.
The financial statements of the 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.
D. Budgeting and Budgetary Control
Arizona Revised Statutes (A.R.S.) requires 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 Expendable Trust Fund because effective budgetary control is alternatively
achieved through the terms of the trust agreement.
Expenditures may not legally exceed appropriations at the department level. Transfers of
appropriations between departments or from the contingency account to a department may be made
in an emergency and require approval by the Board of Supervisors. With the exception of the
General Fund, each fund includes only one department.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
16
Note 1 – Summary of Significant Accounting Policies (Cont’d)
D. Budgeting and Budgetary Control (Cont’d)
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 employed as an
extension of formal budgetary control. Encumbrances outstanding at year-end for goods or services
that were not received before fiscal year-end are canceled. However, the County may draw warrants
against encumbered amounts for goods or services received but unpaid at June 30 for 60 days
immediately following the close of the fiscal year. After 60 days the remaining encumbered balances
lapse.
E. Investments
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 expenditures at the time of purchase. Amounts on hand at year-end are shown on the
balance sheet as an asset for informational purposes only and are offset by a fund balance reserve to
indicate that they do not constitute "available spendable resources." These inventories are stated at
cost using the first-in, first-out method.
G. Fixed Assets
Purchased fixed assets are recorded at the time of purchase as expenditures in the funds from which
the expenditures were made, but they are not capitalized in a General Fixed Assets Account Group.
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 320 hours of
vacation depending on years of service, 50% of excess hours may be extended for 90 days, or 50%
may be transferred to sick leave, and the balance is 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 hours. Generally, sick leave benefits
provide for ordinary sick pay and are cumulative but are forfeited upon termination of employment.
Because sick leave benefits do not vest with employees, a liability for sick leave benefits is not
accrued in the financial statements. However, employees who retire with an accumulation of sick
leave in excess of 1000 hours are paid $750; but since this liability is immaterial, no accrual has been
made.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
17
Note 1 – Summary of Significant Accounting Policies (Cont’d)
H. Compensated Absences (Cont’d)
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.
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 are incurred.
Reimbursements not received within 60 days subsequent to the fiscal year-end are reported as
deferred revenues.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
18
Note 2 – Individual Fund Deficits
The deficit fund balances in the General fund and individual Special Revenue Funds at June 30,
2001, were as follows:
Fund Deficit Balance
General Fund $ 440,326
Special Revenue Funds:
Home Program #149-97 - 96/97 16
Drought Emergency Program - NRCS/EWP - 2000 17,396
JTPA - One Stop - PY97 258
Title V – Older Worker 1,436
JTPA -II A - PY 98 28
JTPA - IIA - PY99 84
JTPA - IIC PY99 228
1% Transitional Fund 965
JTPA - INC PY 98 - 5% 111
WIA - Adult - PY 2000 - 7/01/2000 32,935
WIA - ACP - PY 2000 - 4/1/2000 13,273
WIA - Youth - PY 2000 56,762
Title V - Older Worker - 00/01 9,353
WIA - E5702009-Adult - FY 02 2,551
WIA - E5702009 - Youth- PY 01 7,286
WIA - TA - PY 2001 423
WIA - Set A Side FY 2001 26,325
Dislocated Worker - Gila Co. 196
WIA - E5701020 - Adult - PY 99 2,763
WIA - E5701020 - Youth - PY 99 2,051
WIA - E5701020 - ACP - PY 99 708
Property Information Storage and Retention 11,912
Gang Prosecution Program 8,519
Juv Acct I - JAIBGI 99/00 156
Juv Acct II - JAIBG - 00/01 10,603
Child Support IV- D 359,679
Juv Acct III - JAIBGI 00/02 1,152
Drug Enforcement Attorney 25,131
VOCA - Atty/VIT's of Crime 461
New Millenium Upgrade Program 8,275
T.B. 26,375
WIC 81,032
Nutrition 7,332
Domestic Violence - 00/01 21,044
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
19
Note 2 – Individual Fund Deficits (Cont’d)
HMEPPG - Planning Salary - 113 $ 8,018
Eviction Prevention/EMG Homeless Housing 4,609
HAZMAT - Training Program 12
Grants In Aid - Library 120
Library Outreach to Elderly 295
Speed Detection Devices 26,662
Gang Task Force - GITEM/RATE 1,676
Drug Enforcement Sheriff 87,376
COPS - Universal Hiring 20,738
Winslow Transport Officer 43,881
COPS - Universal Hiring - Supplemental 24,796
Juvenile Intensive Probation SERS/JIPS 8,036
Adult Intensive Probation Services 901
Clerk of Court - JCEF - Automation 5
Drug Enforcement Sup CT/AD Prob 185,313
Show Low Safe School Program 556
JCRF - Big Brothers/Sisters 58
Court Improvement Project 00/01 9,123
Facts 5 Implementation Plan 7,247
Access & Visitation Program 6,415
Detention Loss Prevention 3,655
Juvenile Detention Metal Building 6,642
The County expects the fund deficits listed above to be corrected through normal operations in fiscal
year 2001-2002.
Note 3 – Deposits and Investments
Arizona Revised Statutes 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 saving 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 – Arizona Revised Statutes require community colleges,
school districts, and other local governments to deposit certain public monies with the County
Treasurer (see Note 14). Those monies are pooled with County monies for investment purposes.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
20
Note 3 – Deposits and Investments (Cont’d)
Deposits – At June 30, 2001, the carrying amount of the investment pool’s total cash in bank was
$3,872,245 and the bank balance was $14,173,765. Of the bank balance, $400,000 was covered
by federal depository insurance and $13,773,765 was covered by collateral held by the pledging
financial institution’s trust department or agent in the County’s name.
Investments – At June 30, 2001, the investments in the County Treasurer’s investment pool consisted
of the following:
Fair Value
Investment in State Treasurer's
investment pool $ 84,894,113
U.S. government securities 31,000,000
Total $ 115,894,113
Investments – The State Board of Investment 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, 2001, 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.
Fair
1 2 3 Value
U.S. government securities $ 31,000,000 $ 31,000,000
$ $ 31,000,000 $ 31,000,000
Investment not subject to
categorization:
State Treasurer's investment pool 84,894,113
Total $ 115,894,113
Category
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
21
Note 3 – Deposits and Investments (Cont’d)
Other Deposits – At June 30, 2001, the total nonpooled cash on hand was $2,647. The carrying
amount of the County’s total nonpooled cash in bank was $537,617, and the bank balance was
$1,069,890. The entire bank balance was either covered by federal depository insurance or by
collateral held by the County or its agent.
Other Investments – At June 30, 2001, the County’s nonpooled investments consisted of the
following.
Investment in State Treasurer's
investment pool $ 521,845
Cash and Investments Held by Trustee – At June 30, 2001, the County’s cash and investments
held by trustee, consisted of the following:
Fair Value
Commercial papers $ 6 71,736
U.S. government security money market funds 1,724,343
U.S. government securities 4,134
Total $ 2,400,213
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 and investments held by trustee at
June 30, 2001, are categorized below to give an indication of the level of risk assumed by the
County at year-end.
1 2 3 Value
U.S. government securities $ 2 ,400,213 $ 2,400,213
$ $ $ 2 ,400,213 2,400,213
Investment not subject to
categorization:
State Treasurer's investment pool 521,845
Total $ 2,922,058
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
22
Note 3 – Deposit and Investments (Cont’d)
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 $ 2,647 $ 2,647
Carrying amount of deposits $ 3,872,245 537,617 4,409,862
Reported amount of investments 115,894,113 2 ,922,058 118,816,171
$ 119,766,358 $ 3 ,462,322 $ 123,228,680
Combined balance sheet:
Cash in bank and on hand $ 540,264
Cash and investments held by
County Treasurer 119,766,358
Cash and investments held by trustee 2,400,213
Investments 521,845
Total $ 123,228,680
Note 4 – 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.
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, 2001 were as follows:
That portion of property taxes receivable not collected within 60 days after June 30, 2001, has been
deferred and, consequently, is not included in current year revenues.
Special
General Revenue
Fiscal Year Fund Funds
2000-2001 $ 1 74,241 $ 2 7,391
Prior 38,278 8,733
Net total $ 212,519 $ 36,124
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
23
Note 5 – Due from Other Governments
Amounts due from other governments at June 30, 2001, include $593,728 in state-shared revenue
from highway user taxes, $989,949 in sales taxes, and $164,648 in county taxes and miscellaneous
taxes. The balance of $3,148,215 represents various grants and contracts from federal, state, and
local governments.
Note 6 – Bonds Payable
Revenue Bonds – Navajo County revenue bonds of April 30, 2000 were issued to provide monies to
construct jail facilities. The bonds are generally noncallable with interest payable semiannually.
Principal and interest requirements at June 30, 2001, were as follows:
Outstanding Outstanding
Interest Principal Issues/ Principal
Description Rates Maturity July 1, 2000 (Retirements) June 30, 2001
Navajo County, Arizona Municipal
Property Corporation Jail Facility Bonds
Series 2000 ACA Insured 5.00 - 6.50% July 1, 2020 $ 7,320,000 $ (205,000) $ 7,115,000
Revenue bond debt service requirements to maturity, including $5,058,559 of interest, are as
follows:
2002 $ 2 10,219
2003 624,420
2004 627,345
2005 624,745
2006 621,245
Thereafter 9,465,585
Total $ 12,173,559
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.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
24
Note 6 – Bonds Payable (Cont’d)
The following special assessment districts had bonds outstanding at June 30, 2001.
Outstanding Outstanding
Interest Principal Principal
District Rate Maturities July 1, 2000 Issues Retirements June 30, 2001
Soaring Eagle County Road Improvement 7.25% 7/1/94-2004 $ 45,000 $ 10,000 $ 35,000
White Mountain Summer Home Water 5.00% 7/1/81-2019 1,516,000 50,000 1,466,000
Blue Lake Circle CRID 5.95% 7/23/97-2007 96,496 16,959 79,537
Mountain Homes Unit II 7.50% 7/1/91-2001 15,000 15,000
Sweeping Vista/Charro Way County Road 7.65% 7/1/91-2001 15,000 15,000
Porter Creek Domestic Water 8.50% 1/1/92-2001 5,000 5,000
Misty Mountain Domestic Water 7.125% 1/1/90-2009 53,877 5,000 48,877
Forest Trails Unit III County Road 6.75% 7/1/97-2007 140,000 25,000 115,000
Moon Creek Imp. Dist. 5.95% 7/23/97-2007 56,282 8,040 48,242
Mule Deer Way Imp. Dist. 5.95% 7/23/97-2007 194,892 33,603 161,289
Wild Horse Road #1 5.95% 7/23/97-2007 53,096 7,585 45,511
Timberlake Pines CRID 6.35% 8/27/97-2007 315,673 46,457 269,216
Shore Line Dr. CRID 8.50% 7/7/97-2002 8,000 4,000 4,000
Heber DWID 8.00% 8/1/90-2001 5,000 5,000
Palomino CRID 7.50% 6/29/92-2002 25,000 10,000 15,000
Buck Springs Road Improvement 5.40% 8/13/98-2008 98,420 12,280 86,140
Hiawatha Trail Improvement District 5.91% 8/5/99-2009 87,555 16,463 71,092
Pine Meadows CC Imp. Dist. 5.91% 8/5/99-2009 72,962 8,107 64,855
Chaparral Drive Improvement District 5.80% 8/27/99-2010 204,220 38,811 165,409
Drifting Snow Loop Improvement District 5.75% 9/7/00-2011 2 20,938 7,000 213,938
Total $ 3,007,473 $ 220,938 $ 339,305 $ 2,889,106
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
25
Note 6 – Bonds Payable (Cont’d)
Special assessment bond debt service requirements to maturity, including $1,092,020 of interest,
are as follows:
Year ending June 30,
2002 $ 315,853
2003 398,059
2004 387,666
2005 365,398
2006 352,756
Thereafter 2,161,394
Total $ 3,981,126
Note 7 – Claims and Judgments Payable
The County is a defendant in several claims and lawsuits involving indigent health care, general
liability, and contractual disputes. Liabilities are reported for such claims and judgments when it
is probable that a loss has occurred and the amount of the loss can be reasonably estimated. In
the opinion of the County Attorney and County management, probable losses not covered by
insurance from these proceedings total $55,902, which has been accrued as a liability in the
accompanying financial statements.
Note 8 – Obligations under Leases
Operating Leases – The County leases office space and land 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 $24,611 for the year ended June 30, 2001. The
operating leases have remaining noncancelable lease terms of one to twenty years and provide
renewal options. The future minimum rental payments under the operating leases at June 30,
2001, were as follows:
General Fund
Year ending June 30,
2002 $ 36,920
2003 32,220
2004 32,220
2005 32,220
2006 27,765
Thereafter 224,640
Total minimum payments required $385,985
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
26
Note 9 – Notes Payable
The County is obligated under the terms of two notes payable. The proceeds from these notes were
used to finance construction in two special assessment districts. The notes have principal payments
due semiannually and annually, respectively, with interest payable semiannually.
A summary of these notes payable outstanding at June 30, 2001, follows:
Interest Original Principal Principal
District Rate Maturities Principal Payments June 30, 2001
White Mountain Lakes Recreational Dist 9.00% 11/21/97-2002 $ 9 ,659 $ 3 ,145 $ 6,514
Porter Mountain DWID 4.50% 6/17/97-2037 175,978 6,570 169,408
Total $ 185,637 $ 9 ,715 $ 175,922
Note 10 – Landfill Closure and Postclosure Care Costs
State and federal laws and regulations require the County to place a final cover on its Lone Pine
landfill site when it stopped accepting waste and to perform certain maintenance and monitoring
functions at the site for 30 years after closure. The Lone Pine landfill closed for operations in June
of 1994. The closure and postclosure care costs were estimated and reported as a liability in the
General Long-Term Debt Account Group. The $17,366 reported as landfill closure and postclosure
care liability at June 30, 2001 is the cumulative amount reported to date, less payments thereon made
to date. These amounts are based on what it would cost to perform all closure and postclosure care in
fiscal year 2000-2001. The actual cost may be higher due to inflation, changes in technology, or
changes in regulations.
Note 11 – 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; but was unable to obtain
insurance at a cost it considered to be economically justifiable. Therefore, the County joined and is
covered by two public entity risk pools; the Arizona Counties Property and Casualty Pool and the
Arizona Counties Workers' Compensation Pool, and it established the Employee Benefits Fund, all
of which are described below.
The Arizona Counties Property and Casualty Pool is a public entity risk pool currently composed of
11 member counties. The pool provides member counties catastrophic loss coverage for risks of loss
related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural
disasters; and provides risk management services. Such coverage includes all defense costs as well
as the amount of any judgment or settlement. The County is responsible for paying a premium, based
on its exposure in relation to the exposure of the other participants, and a deductible of $25,000 for
each occurrence.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
27
Note 11 – Risk Management - continued
The County is also responsible for any payments in excess of the maximum coverage of $101
million per occurrence for property claims and $12 million per occurrence for liability claims. A
County must participate in the pool at least three years after becoming a member; however, it may
withdraw after the initial three-year period. If the pool were to become insolvent, the County would
be assessed an additional contribution.
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 Property and Casualty Pool and the Arizona Counties Workers’
Compensation Pool receive independent audits 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.
The Employee Benefits Fund (a part of the General Fund) accounts for the financing of the
uninsured risk of loss for certain health benefits (comprehensive, major medical, dental) to eligible
employees and their dependents. Under this program, the Fund provides coverage for up to a
maximum of $40,000 for each claim. The Fund purchases commercial insurance for claims in excess
of this coverage. Settled claims did not exceed this commercial insurance coverage in any of the past
three fiscal years.
The insurance claims payable liability of the General Fund totaling $622,233 at June 30, 2001, 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 Fund's
claims payable liability amounts for the years ended June 30, 2000 and 2001were as follows:
2000 2001
Claims payable, beginning of year $ 358,778 $ 956,750
Current-year claims and changes in estimates 2,734,722 2,199,816
Claim payments (2,136,750) (2,534,333)
Claims payable, end of year $ 956,750 $ 622,233
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
28
Note 12 – Changes in Long-Term Liabilities
A summary of changes in the liabilities reported in the General Long-Term Debt Account Group
follows.
Balance Balance
July 1, 2000 Additions Reductions June 30, 2001
Accrued payroll and employee
benefits $ 1,003,124 $ 193,886 $ 1,197,010
Obligations under capital leases 9,391 $ 9,391
Notes payable 185,637 9,715 175,922
Revenue bonds payable 7,320,000 205,000 7,115,000
Special assessment bonds with
governmental commitment
payable 3,007,473 220,938 339,305 2,889,106
Landfill closure and postclosure
care costs payable 58,694 41,328 17,366
Total $ 11,584,319 $ 414,824 $ 604,739 $ 11,394,404
Note 12– Interfund Assets and Liabilities
Interfund receivables, payables, and operating transfers by fund are as follows:
Due from Due to Operating Operating
Funds Other Funds Other Funds Transfers In Transfers Out
General $ 925,543 $ 1 ,015,484 $ 3 52,996
Special Revenue $ 959,115 759,846 1,171,288
Debt Service 3,275 300,097 6,931
Capital Projects 20,645 306,981 851,193
Trust & Agency 29,169 86,661
Total $ 1,012,204 $ 1,012,204 $ 2,382,408 $ 2,382,408
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
29
Note 13 – Retirement Plans
Plan Descriptions – The County contributes to the three plans described below. Benefits are
established by state statute and generally provide retirement, death, long-term disability, survivor,
and health insurance premium benefits. In addition, the County contributes to the Elected Officials
Retirement Plan (EORP), which is not described due to the plan’s relative insignificance to the
County’s financial statements.
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 to 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 181 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 according to the provisions of A.R.S. Title
38, Chapter 5, Article 6.
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 and CORP
3300 N. Central Ave. 1020 E. Missouri Ave.
P.O. Box 33910 Phoenix, AZ 85014
Phoenix, AZ 85067-3910
(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 contributions rates.
Cost-sharing plans – For the year ended June 30, 2001, active ASRS members and the County were
each required by statute to contribute at the actuarially determined rate of 2.66 percent (2.17 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, 2001, 2000, and 1999 were $413,509,
$397,670, and $475,722, respectively, which were equal to the required contributions for the year.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
30
Note 13 – Retirement Plans - continued
Agent plans – For the year ended June 30, 2001, active PSPRS members were required by statute to
contribute 7.65 percent of the members’ annual covered payroll, and the County was required to
contribute at the actuarially determined rate of 2.56 percent. Active CORP members were required
by statute to contribute 8.5 percent of the members’ annual covered payroll, and the County was
required to contribute at the actuarially determined rate of 2.0 percent.
Annual Pension Cost – The County’s pension cost for the two agent plans for the year ended June
30, 2001, and the related information follow.
PSPRS CORP
Contribution rates:
County 2.56% 2.0%
Plan Members 7.65% 8.5%
Annual pension cost $131,276 $14,436
Contributions made $131,276 $14,436
The current-year annual required contributions for the PSPRS and CORP were determined as part of
their June 30, 1999 actuarial valuations using the entry-age actuarial cost method. The actuarial
assumptions included (a) 9 percent investment rate of return and (b) projected salary increases
ranging from 6.5 percent to 9.5 percent per year. Both (a) and (b) included an inflation component of
5.5 percent. The assumptions did not include cost-of-living adjustments. The actuarial value of assets
was determined using techniques that smooth the effects of short-term volatility in the market value
of investments over a 4-year period. The unfunded actuarial accrued liability is being amortized at a
level percentage of projected payroll on an open basis. The remaining amortization period at June
30, 1999 was 20 years.
Trend Information – Annual pension cost information for the current and two preceding years
follows for each of the agent plans.
Contributions Required and Contributions Made
Plan
Year Ended
June 30
Annual Pension
Cost (APC)
Percentage of
APC
Contributed
Net Pension
Obligation
PSPRS 2001 $131,276 100.0 $0
2000 74,918 100.0 0
1999 70,520 100.0 0
CORP 2001 14,136 100.0 0
2000 47,459 100.0 0
1999 53,790 100.0 0
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
31
Note 13 – Retirement Plans - continued
Analysis of Funding Progress – The following information was obtained from the three most recent
actuarial valuations of the agent plans.
PSPRS
Actuarial
Valuation
Date
Actuarial
Value of
Plan Assets
(a)
Actuarial
Accrued
Liability
(b)
Funding
(Liability)
Excess
(a-b)
Funded
Ratio
(a/b)
Annual
Covered
Payroll
(c)
Unfunded
Liability as
Percentage of
Covered
Payroll
([a-b]/c)
6/30/01 $ 7,795,661 $ 6,134,547 $1,661,114 127.1% $ 1,488,806 -
6/30/00 7,201,543 6,327,942 873,601 113.8 1,867,160 -
6/30/99 6,346,276 5,787,916 558,360 109.6 1,701,845 -
CORP
Actuarial
Valuation
Date
Actuarial
Value of
Plan Assets
(a)
Actuarial
Accrued
Liability
(b)
Funding
(Liability)
Excess
(a-b)
Funded
Ratio
(a/b)
Annual
Covered
Payroll
(c)
Unfunded
Liability as
Percentage
of Covered
Payroll
([a-b]/c)
6/30/01 $ 1,468,412 $737,172 $731,240 199.2% $946,115 -
6/30/00 1,359,429 735,158 624,271 184.9 952,546 -
6/30/99 1,105,187 601,265 503,922 183.8 911,180 -
Note 14 – County Treasurer’s Investment Pool
Arizona Revised Statues 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 his 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.
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
32
Principal
Note 14 – County Treasurer’s Investment Pool - continued
Details of each major investment classification follows.
Interest Rates Maturities
Fair
Value
Investment in State Treasurer's
investment pool $ 84,894,113 5.6179% n/a $ 84,894,113
U.S. government securities 31,000,000 4.975-6.250% 9/4/01-6/18/04 31,000,000
A condensed statement of the investment pool’s net assets and changes in net assets follows.
Assets $ 1 20,650,402
Liabilities 800,188
Net assets $ 119,850,214
Net assets held in trust for:
Internal participants $ 1 4,755,868
External participants 105,094,346
Total net assets held in trust $ 119,850,214
Statement of Changes in Net Assets
Total additions $ 3 58,967,059
Total deductions 333,295,600
Net increase 25,671,459
Net assets held in trust:
July 1, 2000 94,178,755
June 30, 2001 $ 119,850,214
NAVAJO COUNTY, ARIZONA
Notes to Financial Statements
June 30, 2001
33
Note 15 – Restatement
As of July 1, 2000, Career Development, Incorporated (CDI) ceased being a component unit of the County.
Beginning net assets of Special Revenue Funds have been restated to reflect this change, as follows:
Net assets, July 1, 2000, as previously stated $ 11,097,554
Adjustment to remove CDI net deficit 9,952
Net assets, July 1, 2000, as restated $ 11,107,506
Note 16 – Implementation of GASB Statement No. 34
Beginning with fiscal year 2002, the County will prepare its external financial reports following the
requirements of GASB Statement No. 34, Basic Financial Statements and Management’s Discussion and
Analysis for State and Local Governments. Implementing this standard will significantly change the
accounting principles and reporting format used by the County in future financial reports.
Supplementary Information
NAVAJO COUNTY
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2001
Pass-Through
Federal Grantor/Pass-Through CFDA Grantor's
Grantor/Program Title Number Number Expenditures
U.S. Department of Agriculture
Passed through the Arizona Department of Health Services
Special Supplemental Food Program for Women,
Infants, and Children 10.557 761108 $ 258,588
Drought Emergency 10.unknown 68-9457-1-403 24,839
Passed through the Arizona State Treasurer
Schools and Roads – Grants to States 10.665 None 24,307
Total U.S. Department of Agriculture 307,734
U.S. Department of Housing and Urban Development
Passed through the Arizona Department of Commerce
Community Development Block Grants 14.228 026-00 123,748
Home Program 14.229 039-00 63,985
Total U.S. Department of Housing and Urban Development 187,733
U.S. Department of Justice
Discretionary Grant 16.580 50,259
Juvenile Accountability, Inc. Block Grant 16.523 81,154
Federal Major Crime Apprehension Team 16.unknown 100,047
Passed through the Arizona Department of Public Safety
VOCA - Crime Victim Assistance 16.575 None 21,224
VOCA - Crime Prevention 16.576 None 3,752
Passed through the Arizona Criminal Justice Commission
Byrne Formula Grant Program - Drug Control and System
Improvement
Sheriff 16.579 AC 180-01 181,232
Attorney 16.579 PC-140-01 65,053
Domestic Violence Prevention 16.589 97-WR-VX-0014 32,390
Local Law Enforcement Block Grant 16.592 2000-LB-BX-0816 8,591
Total U.S. Department of Justice 543,702
U.S. Department of Labor
Passed through Arizona Department of Economic Security
Title V - Older Worker 17.235 E6201054 52,746
Job Training Partnership Act 17.250 E5702010, E5701020,
E5700006 188,561
Workforce Investment Act 17.255 E5702010, E5701020,
E5700006 238,672
Total U.S. Department of Labor 479,979
(Continued)
See accompanying notes to schedule.
34
NAVAJO COUNTY
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2001
(Continued)
Pass-Through
Federal Grantor/Pass-Through CFDA Grantor's
Grantor/Program Title Number Number Expenditures
U.S. Department of Transportation
Hazardous Materials 20.703 $ 8 ,487
Passed through the Arizona Department of Transportation
Apache Trail System 20.205 AGIN00000501 25,376
Total U.S. Department of Transportation 33,863
U.S. Institute of Museum and Library Services
Passed through Arizona Department of Library, Archives, &
Public Records
State Library Program 45.310 981-1-8-(7) 9 ,277
State Library Program 45.310 201-1-5-(6) 2 ,500
State Library Program 45.310 99000-90903-6811 15,251
Total U.S. Institute of Museum and Library Services 27,028
U.S. Federal Emergency Management Agency
Passed through State of Arizona Department of Emergency and
Military Affairs
Federal Emergency Management Food and Shelter Program 83.523 None 25,853
U.S. Department of Education
Passed through Arizona Department of Economic Security
Title II Technology - LSCA 84.154 KR 97-2782-EQS 2 0,000
Early Intervention 84.181 E1800031, E1800032 51,581
Total U.S. Department of Education 7 1,581
U.S. Department of Health and Human Services
Passed through Arizona Department of Health Services
Childhood Immunization Grants 93.991 30-4066, 152045 13,265
Child Support Enforcement 93.563 E7200017, E7201017 592,497
HIV - Prevention and Control 93.940 852023, 152016 112
Preventive Health Services - Sexually Transmitted Diseases 93.977 None 195
Preventive Health and Health Services Block Grant 93.991 952020 39,297
Maternal and Child Health Services Block Grant to the States 93.994 961125, 761108, 961092 69,071
Total U.S. Department of Health and Human Services 714,437
U.S. Department of the Interior
Payment in Lieu of Taxes – Section 1 15.226 4 35,569
Passed through Apache County
U.S. Forest Service 15.unknown None 5,000
Total U.S. Department of the Interior 440,569
Total Expenditures of Federal Awards $ 2 ,832,479
See accompanying notes to schedule.
35
Navajo County
Notes to Schedule of Expenditures of Federal Awards
Year Ended June 30, 2001
Note 1- Basis of Accounting
The accompanying schedule of expenditures of federal awards includes the
federal grant activity of Navajo County and is presented on the modified accrual
basis of accounting. The information in this report is presented in accordance
with the requirements of OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the
preparation of, the financial statements.
Note 2 – Catalog of Federal Domestic Assistance (CFDA) Numbers
The program titles and CFDA numbers were obtained from federal or pass-through
grantors or the 2001 Catalog of Federal Domestic Assistance Update.
36
Page Two
A material weakness is a condition in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level the risk that misstatements in
amounts that would be material in relation to the general purpose financial statements being
audited may occur and not be detected within a timely period by employees in the normal course
of performing their assigned functions. Our consideration of internal control over financial
reporting would not necessarily disclose all such internal control matters that might be reportable
conditions and, accordingly, would not necessarily disclose all reportable conditions that are also
considered to be material weaknesses. However, of the reportable conditions described above, we
consider items 01-03 and 01-04 to be material weaknesses. We also noted other matters
involving internal control over financial reporting that we have reported to the management of the
County in a separate letter dated April 23, 2003.
This report is intended solely for the information and use of the members of the Arizona State
Legislature, the Auditor General of the State of Arizona, the Board of Supervisors, federal
awarding agencies, and pass-through entities. It 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.
April 23, 2003
38
Page Two
Internal Control over Compliance
The County’s management is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts, and grants applicable
to federal programs. In planning and performing our audit, we considered the County’s internal
control over compliance with requirements that could have a direct and material effect on a major
federal program in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance and to test and report on internal control over compliance in accordance
with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all such
internal control matters that might be material weaknesses. A material weakness is a condition in
which the design or operation of one or more internal control components does not reduce to a
relatively low level the risk that noncompliance with applicable requirements of laws, regulations,
contracts, and grants that would be material in relation to a major federal program being audited
may occur and not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal control over
compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the members of the Arizona State
Legislature, the Auditor General of the State of Arizona, the Board of Supervisors, federal
awarding agencies, and pass-through entities. It is not intended to be and should not be used by
anyone other than these specified parties. However, this report is matter of public record and its
distribution is not limited.
April 23, 2001
40
NAVAJO COUNTY
Schedule of Findings and Questioned Costs
Year Ended June 30, 2001
Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued: Qualified
YES NO
Material weaknesses identified in internal control over financial reporting? X ___
Reportable condition identified not considered to be material weakness? ___ X
Noncompliance material to the financial statements noted? ___ X
Federal Awards
Material weakness identified in internal control over major programs? ___ X
Reportable condition identified not considered to be material weakness? (None reported)
Type of auditors’ report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are required to be reported in accordance with
Circular A-133 (section .510[a])? X ___
Identification of major programs:
CFDA Number Name of Federal Program or Cluster
10.557 Special Supplemental Food Program for Women, Infants, and Children
15.226 Payment in Lieu of Taxes – Section 1
16.579 Byrne Formula Grant Program – Drug Control and System Improvement
93.563 Child Support Enforcement
Dollar threshold used to distinguish between Type A and Type B programs: $ 300,000
Auditee qualified as low-risk auditee? ___ X
Other Matters
Auditee’s summary schedule of prior audit findings required to be reported in
accordance with Circular A-133 (section .315[b])? X ___
41
NAVAJO COUNTY
Schedule of Findings and Questioned Costs
Year Ended June 30, 2001
Financial Statement Findings
01-01
The County Board of Supervisors failed
to approve budget transfers and amendments
Condition:
1. The County’s Board of Supervisors failed to formally approve transfers between
budget line items and, therefore, the County expended amounts in excess of
budgeted amounts within its General Fund.
2. The County’s Board of Supervisors failed to formally amend the County’s special
revenue budget when it received grant awards after its final budget was approved
and, therefore, the County expended amounts in excess of its final budget.
Effect: The County was out of compliance with Arizona Revised Statute (A.R.S.)
42-17106.
Recommendation: To comply with A.R.S. 42-17106, the County’s Board of Supervisors
should formally approve all County budget transfers and amendments by a majority vote.
01-02
The County failed to submit the Annual
Expenditure Limitation Report to the
Auditor General of the State of Arizona
Condition: The County failed to submit its Annual Expenditure Limitation Reports to the
Auditor General of the State of Arizona by February 28, following the fiscal years ended
June 30, 2000 and 2001.
Effect: The County was out of compliance with Arizona Revised Statute (A.R.S.)
41-1279.07(c).
Recommendation: To comply with A.R.S. 41-1279.07(c), the County should submit the
reports required by the Uniform Expenditure Reporting System to the Auditor General by
February 28, following each fiscal year-end.
42
NAVAJO COUNTY
Schedule of Findings and Questioned Costs
Year Ended June 30, 2001
01-03
General fixed assets
Condition: The County’s general fixed assets system of accountability was inadequate, as
evidenced by the weaknesses in the County’s internal control over them set forth below.
Existing records did not provide adequate information to present general fixed assets in the
County’s financial statements in accordance with U.S. generally accepted accounting
principles. The deficiencies noted below are considered to be material weaknesses.
1. The County did not maintain a general fixed assets listing. In addition, a physical
inventory of fixed assets has not been taken in the last ten years.
Criteria: The County’s general fixed assets policies and procedures should be in compliance
with the Uniform Accounting Manual for Arizona Counties (UAMAC).
Effect: Because of the lack of adequate internal control over them, general fixed assets have not
been safeguarded against improper or unauthorized use.
Recommendation: To comply with the requirements of the Uniform Accounting Manual for
Arizona Counties (UAMAC) § VI-E, the County should prepare and maintain a complete
and accurate listing of land, buildings, and related improvements costing $5,000 or more,
and machinery and equipment items with unit costs of $1,000 or more, and with useful lives
longer than one year. The listing should include the following for each item:
a. Location
b. Identification number for furniture, equipment, and vehicles (tag number, serial
number, or other number that specifically identifies the item)
c. Description
d. Method of acquisition (purchase, construction, trade, lease-purchase, or donation)
e. Source of funding
f. Acquisition date (month and year)
g. Purchase document number
h. Cost
Actual costs, including ancillary costs such as sales tax, freight, and installation costs,
should be used to record assets, and supporting documentation should be retained for these
costs. If actual cost information is not available, the County may record purchased assets at
estimated historical cost. Estimated fair market value at the date of acquisition should be
used to record the cost of donated assets. Documentation, such as contracts, catalogs,
working paper calculations, and the minutes of Board of Supervisors’ meetings, should be
retained to support estimated cost information.
43
NAVAJO COUNTY
Schedule of Findings and Questioned Costs
Year Ended June 30, 2001
01-03
General fixed assets (Cont’d)
In addition, to help ensure compliance with the requirements of the UAMAC § VI-E, the
County should take a physical inventory at least every two years of fixed assets purchased
with federal monies and every three years of all other fixed assets, and reconcile it to the
general fixed assets listing.
01-04
Reconciliations of cash and investments
on deposit with the County Treasurer
Condition: The County’s accountability over cash and investments on deposit with the
County Treasurer was inadequate, as evidenced by the internal control weakness set forth
below.
1. The County failed to reconcile its cash and investments balances in the general
ledger to the amounts recorded by the County Treasurer monthly or at year-end
in a timely manner.
Criteria: Cash and investments on deposit with the County Treasurer for each County
fund must be reconciled on a timely basis to the amounts recorded by the County
Treasurer each month.
Effect:
1. The County’s assets were not properly safeguarded.
2. The County was unable to prepare its financial statements in a timely manner.
3. Several audit and post-closing adjustments were necessary to properly state the
County’s financial statements.
Recommendation: The County’s management and Board of Supervisors should have
reliable, informative, and timely financial information to effectively manage the County’s
finances and operations. However, due to difficulties encountered during the County
Treasurer’s implementation of a new accounting system the County was unable to
properly compile, reconcile, and review financial data required for timely completion of
financial statements and other required reports. The County should review its policies and
procedures and accounting system to ensure that cash and investments on deposit with
the County Treasurer are reconciled monthly.
44
NAVAJO COUNTY
Schedule of Findings and Questioned
Year Ended June 30, 2001
Federal Award Findings and Questioned Costs
01-101
CFDA No.: 93.563 Child Support Enforcement
U.S. Department of Health and Human Services
Pass-through Entity: Arizona Department of Health Services
Award Year: October 1, 1999 through September 30, 2000 and October 1, 2000
through September 30, 2001.
Award Numbers: E7206017 and E7201017
QuestionedCost:N/A
Condition: As a result of testing monthly financial reports, it was determined that ten of
twelve reports were submitted late to the Arizona Department of Health Services.
Criteria: Per the Child Support Enforcement reporting requirements, monthly financial
reports are required to be submitted 28 days following the end of the month in which the
County incurs the expenditures.
Effect: The Arizona Department of Health and Human Services may reduce contract
incentives pursuant to the grant agreement’s performance standards.
Recommendation: To help ensure compliance with reporting requirements, the County
should implement policies and procedures to ensure that the Child Support Enforcement
financial information is compiled monthly to enable the finance department to complete
the monthly financial reports in a timely manner.
45
April 23, 2003
Debbie Davenport
Auditor General
2910 N. 44th Street, Suite 410
Phoenix, AZ 85018
Dear Ms. Davenport:
The accompanying corrective action plan has been prepared as required by U.S. Office of
Management and Budget Circular A-133. Specifically, we are providing you with the
names of the contact persons responsible for corrective action, the corrective action
planned, and the anticipated completion date for each audit finding included in the
current year’s schedule of findings and questioned costs.
Sincerely,
JoanMickle
Accounting Supervisor
46
NAVAJO COUNTY
Corrective Action Plan
Year Ended June 30, 2001
The findings from the June 30, 2001, schedule of findings and questioned costs are
discussed below. The findings are numbered consistently with the numbers assigned in
the schedule.
Financial Statement Findings
01-01
The County Board of Supervisors failed
to approve budget transfers and amendments
Contact Person: Joan Mickle, Accounting Supervisor
Phone Number (928) 524-4038
Anticipated completion date: June 30, 2003
Recommendation: To comply with A.R.S. 42-17106, the County’s Board of Supervisors
should formally approve all County budget transfers and amendments by a majority vote.
Action taken: The County has established and plans to adhere to policies and procedures
that will require a formal vote be taken to approve all County budget transfers and
amendments.
01-02
The County failed to submit the Annual
Expenditure Limitation Report to the
Auditor General of the State of Arizona
Contact Person: Joan Mickle, Accounting Supervisor
Phone Number (928) 524-4038
Anticipated completion date: February 28, 2004
Recommendation: To comply with A.R.S. 41-1279.07(c), the County should submit the
reports required by the Uniform Expenditure Reporting System to the Auditor General by
February 28, following each fiscal year-end.
Action taken: The report for the fiscal year ending June 30, 2000 has been completed,
and currently the County is working with members of the staff of the Arizona Auditor
General to complete their annual expenditure limitation report for the fiscal year ending
June 30, 2001.
47
NAVAJO COUNTY
Corrective Action Plan
Year Ended June 30, 2001
01-03
General fixed assets
Contact Person: Joan Mickle, Accounting Supervisor
Phone Number (928) 524-4038
Anticipated completion date: December 31, 2003
Recommendation: To comply with the requirements of the Uniform Accounting Manual for
Arizona Counties (UAMAC) §VI-E, the County should prepare and maintain a complete
and accurate listing of land, buildings, and related improvements costing $5,000 or more,
and machinery and equipment items with unit costs of $1,000 or more, and with useful lives
longer than one year. The listing should include the following for each item:
a. Location
b. Identification number for furniture, equipment, and vehicles (tag number, serial
number, or other number that specifically identifies the item)
c. Description
d. Method of acquisition (purchase, construction, trade, lease-purchase, or donation)
e. Source of funding
f. Acquisition date (month and year)
g. Purchase document number
h. Cost
Actual costs, including ancillary costs such as sales tax, freight, and installation costs,
should be used to record assets, and supporting documentation should be retained for these
costs. If actual cost information is not available, the County may record purchased assets at
estimated historical cost. Estimated fair market value at the date of acquisition should be
used to record the cost of donated assets. Documentation, such as contracts, catalogs,
working paper calculations, and the minutes of Board of Supervisors' meetings, should be
retained to support estimated cost information.
48
NAVAJO COUNTY
Corrective Action Plan
Year Ended June 30, 2001
01-03
General fixed assets (Cont’d)
In addition, to help ensure compliance with the requirements of the UAMAC § VI-E, the
County should take a physical inventory at least every two years of fixed assets
purchased with federal monies and every three years of all other fixed assets, and
reconcile it to the general fixed assets listing.
Actions taken: Navajo County has recently purchased a new accounting package. This
package includes a General Fixed Assets program, using bar codes. It is our intention to
have our general fixed assets listing completed by December 31, 2003. However, we do
have our entire inventory written up and balanced through December 31, 1998. From
January 1, 1999 to current we have all of the inventory written up, but it remains to be
balanced. This project is being worked on currently.
01-04
Reconciliations of cash and investments
on deposit with the County Treasurer
Contact Person: Joan Mickle, Accounting Supervisor
Phone Number (928) 524-4038
Completed
Recommendation: The County’s management and Board of Supervisors should have
reliable, informative, and timely financial information to effectively manage the County’s
finances and operations. However, due to difficulties encountered during the County
Treasurer’s implementation of a new accounting system the County was unable to
properly compile, reconcile, and review financial data required for timely completion of
financial statements and other required reports. The County should review its policies and
procedures and accounting system to ensure that cash and investments on deposit with
the County Treasurer are reconciled monthly.
Action taken: The County has worked with members of the staff of the Arizona Auditor
General to bring its cash and investments on deposit with the County Treasurer
reconciliations up to date, and the reconciliations are now current.
49
NAVAJO COUNTY
Corrective Action Plan
Year Ended June 30, 2001
Federal Award Findings and Questioned Costs
01-101
CFDA No.: 93.563 Child Support Enforcement
Contact Person: Joan Mickle, Accounting Supervisor
Phone Number (928) 524-4038
Anticipated completion date: December 31, 2003
Recommendation: To help ensure compliance with reporting requirements, the County
should implement policies and procedures to ensure that the Child Support Enforcement
financial information is compiled monthly to enable the finance department to complete
the monthly financial reports in a timely manner.
Action taken: The County is currently working to provide more timely monthly financial
reporting.
50
April 23, 2003
Debbie Davenport
Auditor General
2910 N. 44th Street, Suite 410
Phoenix, AZ 85018
Dear Ms. Davenport:
The accompanying summary schedule of prior audit findings has been prepared as
required by U.S. Office of Management and Budget Circular A-133. Specifically, we are
reporting the status of audit findings included in the prior audit’s schedule of findings and
questioned costs related to federal awards. This schedule also includes audit findings
reported in the prior audit’s summary schedule of prior audit findings that have not been
corrected.
Sincerely,
JoanMickle
Accounting Supervisor
51
NAVAJO COUNTY
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2001
Status of Federal Award Findings and Questioned Costs
00-101
CFDA No.: 93.563 Child Support Enforcement
U.S. Department of Health and Human Services
Pass-through Entity: Arizona Department of Health Services
Award Year: October 1, 1998 through September 30, 1999 and October 1, 1999
through September 30, 2000.
Award Numbers: E7200017 and E7201017
QuestionedCost:N/A
Condition: During our testing of monthly financial reports we determined that all twelve
reports were submitted late to the Arizona Department of Health Services.
Status: Not corrected. The County is currently working to provide more timely monthly
financial reporting.
52