La Paz County Arizona Report on Examination [Audit] of Annual Expenditure Limitation Report

              Expenditure Limitation Report
A REPORT
TO THE
ARIZONA LEGISLATURE
La Paz County
Year Ended June 30, 2001
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
La Paz County
Report on Audit of Annual Expenditure Limitation Report
Year Ended June 30, 2001
Table of Contents Page
Independent Auditors' Report 1
Annual Expenditure Limitation Report—Part I 2
Annual Expenditure Limitation Report—Part II 3
Annual Expenditure Limitation Report—Reconciliation 4
Notes to Annual Expenditure Limitation Report 5
2910 NORTH 44 th 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 Board of Supervisors of
La Paz County, Arizona
We have audited the accompanying Annual Expenditure Limitation Report of La Paz County for
the year ended June 30, 2001. This report is the responsibility of the County's management.
Our responsibility is to express an opinion on this report based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the report is free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the report. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall report presentation. We believe that our audit provides a reasonable
basis for our opinion.
The accompanying Annual Expenditure Limitation Report was prepared for the purpose of
complying with the uniform expenditure reporting system as discussed in Note 1, and is not
intended to be a presentation in conformity with U.S. generally accepted accounting principles.
In our opinion, the Annual Expenditure Limitation Report of La Paz County for the year ended
June 30, 2001, referred to above presents fairly, in all material respects, the information
required by the uniform expenditure reporting system on the basis of accounting described in
Note 1.
This report is intended solely for the information and use of the members of the Arizona State
Legislature and the Board of Supervisors, and for filing with the Auditor General of the State of
Arizona and is not intended to be and should not be used by anyone other than these specified
parties. However, this report is a matter of public record and its distribution is not limited.
Dennis L. Mattheisen, CPA
Financial Audit Director
May 23, 2002
La Paz County
Annual Expenditure Limitation Report—Part I
Year Ended June 30, 2001
2
1. Economic Estimates Commission expenditure limitation $8,475,915
2. Amount subject to the expenditure limitation (total amount from
Part II, Line C) 8,475,914
3. Amount under expenditure $ 1
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: Ava Alcaida, Finance Director
Telephone Number: (928) 669-2247 Date:
See accompanying notes to report.
La Paz County
Annual Expenditure Limitation Report—Part II
Year Ended June 30, 2001
Special Capital
General Revenue Projects Enterprise
Description Fund Funds Funds Fund Total
A. Amounts reported on the
Reconciliation, Line D $7,905,826 $ 8,748,690 $372,663 $1,573,843 $18,601,022
B. Less exclusions claimed:
Debt service requirements on
other long-term obligations
(Note 2) 310,375 36,217 438,975 785,567
Dividends, interest, and gains
on the sale or redemption of
investment securities (Note 3) 309,480 173,388 25,487 508,355
Trustee or custodian (Note 4) 212,073 132,575 344,648
Grants and aid from the
federal government (Note 5) 473,763 1,794,266 2,268,029
Amounts received from the
State of Arizona (Note 5) 779,646 2,704,104 3,483,750
Quasi-external interfund
transactions (Note 6) 12,000 12,000
Highway user revenues in
excess of those received in
fiscal year 1979-80 (Note 5) 2,722,759 2,722,759
Total exclusions claimed 2,097,337 7,563,309 464,462 10,125,108
C. Amounts subject to the
expenditure limitation $5,808,489 $ 1,185,381 $372,663 $1,109,381 $ 8,475,914
See accompanying notes to report.
3
La Paz County
Annual Expenditure Limitation Report—Reconciliation
Year Ended June 30, 2001
Special Capital
General Revenue Projects Enterprise
Description Fund Funds Funds Fund Total
A. Total expenditures/expenses
and applicable other financing
uses reported within the general
purpose financial statements $8,585,773 $11,501,297 $372,663 $1,398,246 $21,857,979
B. Deductions:
Items not requiring use of working
capital—Depreciation 182,025 182,025
Expenditures of separate legal
entities established under
Arizona Revised Statutes 53,215 2,752,607 2,805,822
(Note 7)
Long-term care contributions
withheld by the State Treasurer
(Note 8) 626,732 626,732
Total deductions 679,947 2,752,607 182,025 3,614,579
C. Additions:
Principal payments on long-term
debt 243,496 243,496
Acquisition of capital assets 114,126 114,126
Total additions 357,622 357,622
D. Amounts reported on Part II, Line A $7,905,826 $ 8,748,690 $372,663 $1,573,843 $18,601,022
See accompanying notes to report.
4
La Paz County
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2001
5
Note 1 - Summary of Significant Accounting Policies
The Annual Expenditure Limitation Report (AELR) is presented on the basis of accounting
prescribed by the uniform expenditure reporting system (UERS), as required by Arizona
Revised Statutes §41-1279.07, which excludes expenditures or expenses of certain revenues
specified in the Arizona Constitution, Article IX, §20 from the total expenditures or expenses
reported in the annual general purpose financial statements.
In accordance with the UERS requirements, a note to the AELR is presented below for any
exclusion claimed on Part II and each deduction or addition in the Reconciliation that cannot
be traced directly to an amount reported in the annual general purpose financial statements.
All references to financial statement amounts in the following notes refer to the Combined
Statement of Revenues, Expenditures, and Changes in Fund Balances—All Governmental Fund
Types for the General, Special Revenue, and Capital Projects Funds; the Statement of
Revenues, Expenses, and Changes in Retained Earnings—Enterprise Fund; and the Statement of
Cash Flows—Enterprise Fund.
Note 2 - The exclusion claimed for debt service requirements on other long-term obligations consists of
principal retirement and interest expenditures for certificates of participation and capital
leases of $262,542 recorded as general government expenditures and $47,833 recorded as
public safety expenditures in the General Fund; $14,895 recorded as highways and streets
expenditures and $21,322 recorded as public safety expenditures in the Special Revenue
Funds; and $438,975 recorded as cash flows from capital and related financing activities in the
Enterprise Fund.
Note 3 - The exclusion claimed for dividends, interest, and gains on the sale or redemption of
investment securities of $309,480 in the General Fund includes interest on investments
expended of $164,976 and interest on delinquent taxes expended of $144,504, which was
recorded as tax revenue.
The exclusion claimed for dividends, interest, and gains on the sale or redemption of
investment securities of $173,388 in the Special Revenue Funds does not include $20,408 of
interest, attributable to the Jail District, that was deducted from expenditures on the
Reconciliation. Remaining revenues of $11,724 have been carried forward to future years.
Note 4 - The exclusion claimed for trustee or custodian in the General Fund consists of $212,073 in
contributions recorded as health expenditures by the County to the Arizona Health Care Cost
Containment System for acute care.
The exclusion claimed for trustee or custodian in the Special Revenue Funds consists of
$132,575 of general government expenditures from revenues in the Anti-Racketeering (RICO)
Fund, which benefited other governmental entities.
La Paz County
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2001
6
Note 5 - The following schedule presents revenues from which exclusions have been claimed for
federal grants and aid, amounts received from the State of Arizona, and highway user
revenues in the General and Special Revenue Funds.
General Fund Special Revenue Funds
Description
Revenues
Amount
Excluded
Amount
Carried
Forward Revenues
Amount
Excluded
Amount
Carried
Forward
Grants and aid from the
federal government $ 473,763 $ 473,763 $1,794,266 $1,794,266
Amounts received from the
State of Arizona 1,116,890 779,646 $337,244 2,834,604 2,704,104 $130,500
Highway user revenues in
excess of those received
in fiscal year 1979-80 2,722,759 2,722,759
Other revenues
(nonexcludable) 2,167,702
Total intergovernmental
revenues as reported in
the general purpose
financial statements $3,758,355 $7,351,629
Note 6 - The exclusion of $12,000 for quasi-external transactions in the General Fund is for
expenditures recorded in the Special Revenue Funds for the DES Child Support Program,
which is also recorded as miscellaneous revenues and general government expenditures in
the General Fund.
Note 7 - The deduction of $2,805,822 for separate legal entities established under Arizona Revised
Statutes consists of expenditures of a municipal property corporation of $53,215 in the
General Fund and the La Paz County Jail District of $2,752,607 in the Special Revenue Funds
and are included within the County’s reporting entity but not included in the Economic
Estimates Commission base limit calculations.
Note 8 - The amount of transaction privilege taxes withheld by the State Treasurer to meet the
County's share of long-term care costs was reported as a revenue and an offsetting health
expenditure in the County's general purpose financial statements. Consequently, this
expenditure has been deducted on the Reconciliation.