Graham County Community College District (Eastern Arizona College) expenditure limitation report year ended...

              Annual Budgeted Expenditure Limitation Report
A REPORT
TO THE
ARIZONA LEGISLATURE
Graham 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:
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:
www.auditorgen.state.az.us
Graham 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
Graham County Community College District
We have audited the accompanying Annual Budgeted Expenditure Limitation Report of Graham 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 Graham 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
Graham County Community College District
Annual Budgeted Expenditure Limitation Report—Part I
Year Ended June 30, 2002
2
1. Economic Estimates Commission expenditure limitation $19,691,706
2. Total amount subject to the expenditure
limitation (from Part II, Line C) 17,841,096
3. Less expenditures of monies received pursuant to Arizona
Revised Statutes §15-1472 (workforce development) (438,357)
4. Adjusted amount subject to the expenditure
limitation 17,402,739
5. Amount under (in excess of) the expenditure limitation. $ 2,288,967
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: Brent McEuen, Executive Vice President
Telephone Number: (928) 428-8233 Date: February 28, 2003
See accompanying notes to report.
Graham County Community College District
Annual Budgeted Expenditure Limitation Report- Part II
Year Ended June 30, 2002
Current Funds
Unrestricted
Auxiliary Unexpended
General Enterprises Restricted Plant Fund Total
A. Total budgeted expenditures $ 16,423,659 $ 3,015,812 $ 4,070,206 $ 11,772,851 $ 35,282,528
B. Less exclusions claimed:
Dividends, interest, and gains on the sale or redemption of
investment securities (Note 2) 146,045 72,915 507,428 726,388
Grants and aid from the federal government (Note 3) 3,498,736 3,498,736
Grants, aid, contributions, or gifts from a private agency,
organization, or individual, except amounts received
in lieu of taxes 15,350 2,808 18,158
Contracts with other political subdivisions (Note 3) 1,393,704 1,309,480 2,703,184
Tuition and fees (Note 4) 145,140 8,422 2,419,365 2,572,927
Prior years carryforward (Note 5) 7,922,039 7,922,039
Total exclusions claimed 1,684,889 1,406,167 3,501,544 10,848,832 17,441,432
C. Amounts subject to the expenditure limitation $ 14,738,770 $ 1,609,645 $ 568,662 $ 924,019 $ 17,841,096
See accompanying notes to report.
3
Description
Graham 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 $727,522 reported as investment income on the Statement of Revenues, Expenses and
Changes in Net Assets, only $726,388 applied to monies subject to the expenditure limitation
and was claimed as an exclusion.
Note 3 - Of the $6,362,961 reported as government grants and contracts revenue on the Statement of
Revenues, Expenses and Changes in Net Assets, $3,498,736 was expended and claimed as
an exclusion for grants and aid from the federal government; $2,703,184 was expended and
claimed as an exclusion for contracts with political subdivisions; $114,617 has been carried
forward to future years; and $46,424 applied to state grants, which are not excludable
revenues.
Note 4 - Of the gross tuition and fees of $3,089,315 reported in the Statement of Revenues, Expenses,
and Changes in Net Assets, $2,572,927 was expended and claimed as an exclusion, and
$516,388 has been carried forward to future years.
Graham County Community College District
Notes to Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2002
5
Note 5 - Prior years carryforward consists of constitutionally excludable revenues unexpended in the
year of receipt that have been accumulated and were expended in the current year as
follows:
Description
Unexpended
Plant Fund
Dividends, interest, and gains on the sale
or redemption of investment
securities $ 614,017
Amounts received from the State of Arizona for the
purchase of land, and the purchase or
construction of buildings or improvements 229,656
Contracts with other political subdivisions 7,078,366
Total prior years carryforward expended $7,922,039