Greenlee County Arizona report on examination of annual expenditure limitation report

              GREENLEE COUNTY, ARIZONA
Report on Audit of Annual
Expenditure Limitation Report
Year Ended June 30, 2003
GREENLEE COUNTY
Report on Audit of Annual Expenditure Limitation Report
Year Ended June 30, 2003
Table of Contents
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
Independent Auditors' Report
Auditor General of the State of Arizona
The Board of Supervisors of
Greenlee County, Arizona
We have audited the accompanying Annual Expenditure Limitation Report of Greenlee County, Arizona for
the year ended June 30, 2003. 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 Greenlee County for the year ended June 30,
2003, 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.
CHRISTENSEN, GALE & MCLAREN, LLP
March 26, 2004
GREENLEE COUNTY
Annual Expenditure Limitation Report - Part I
Year Ended June 30, 2003
See accompanying notes to report.
2
1. Economic Estimates Commission expenditure limitation $ 4,801,097
2. Amount subject to the expenditure limitation (total amount from
Part II, Line C) 4,589,579
3. Amount under the expenditure limitation $ 211,518
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: Kay Gale, County Administrator
Telephone Number: Date:
GREENLEE COUNTY
Annual Expenditure Limitation Report - Part II
Year Ended June 30, 2003
See accompanying notes to report.
3
Special Debt
General Revenue Service
Description Fund Funds Fund Total
A. Amounts reported on the Reconciliation,
Line D $ 5,290,207 $ 3,811,372 $ 341,285 $ 9,442,864
B. Less exclusions claimed:
Debt service requirements on other long-term
obligations (Note 6) 61,281 190,676 341,285 593,242
Dividends, interest, and gains on the sale or
redemption of investment securities 19,222 19,222
Trustee of custodian (Note 2) 174,834 174,834
Grants and aid from the federal government
(Note 3) 555,241 931,754 1,486,995
Amounts received from the State of Arizona
(Note 3) 898,581 889,128 1,787,709
Highway user revenues in excess of those
received in fiscal year 1979-80 (Note 3) 736,908 736,908
Contracts with other political subdivisions
(Note 3) 54,375 - - 54,375
Total exclusions claimed 1,744,312 2,767,688 341,285 4,853,285
C. Amounts subject to the expenditure
Limitation $ 3,545,895 $ 1,043,684 $ - $ 4,589,579
GREENLEE COUNTY
Annual Expenditure Limitation Report - Reconciliation
Year Ended June 30, 2003
See accompanying notes to report.
4
Special Debt
General Revenue Service
Description Fund Funds Fund Total
A. Total expenditures or expenses and applicable
other financing uses reported within the primary
government financial statements $ 5,983,993 $ 3,811,372 $ 341,285 $ 10,136,650
B. Deductions:
Items not requiring use of working capital:
Communiy college reimbursement payments
pursuant to A.R.S. 15.469.01 (Note 4) 473,779 473,779
Long-term care contributions withheld by the
State Treasurer (Note 5) 220,007 220,007
Total deductions 693,786 - - 693,786
D. Amounts reported on Part II, Line A $ 5,290,207 $ 3,811,372 $ 341,285 $ 9,442,864
GREENLEE COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2003
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.
Note 2 - The exclusion claimed for trustee or custodian consists of $174,834 in contributions by the
County to the Arizona Health Care Cost Containment System for acute care and was recorded in
welfare expenditures.
Note 3 - The following schedule presents revenues from which exclusions have been claimed for federal
grants and aid, other amounts received from the State of Arizona, and highway user revenues in
the General and Special Revenue Funds.
General Funds
Description
Grants and aid from the federal
government $ 555,241 $ 931,754
Amounts received from the State
of Arizona 898,581 889,128
Highway user revenues in excess
of those received in fiscal year
1979-1980 736,908
Contracts with other political subdivisions 54,375
Other revenues(nonexcludable) 1,502,862 532,611
Total intergovernmental revenues
as reported in the primary
government financial statements $ 3,011,059 $ 3,090,401
Special
Revenue
Funds
GREENLEE COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2003
6
Note 4 - The deduction shown for community college reimbursement payments in the General Fund is
included in general government expenditures.
Note 5 - 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 revenue and an offsetting expenditure in the
County's primary government financial statements. Consequently, this expenditure has been
deducted on the Reconciliation.
Note 6 - The amounts excluded for debt service requirements on other long-term obligations consists of
expenditures for capital lease obligations within various functional expenditure categories and
expenditures for principal retirement and interest and fiscal charges on certificates of participation
in the governmental funds.