Cochise County, Arizona report on examination of annual expenditure limitation report

              COCHISE COUNTY, ARIZONA
Report on Audit of Annual
Expenditure Limitation Report
Year Ended June 30, 2001
COCHISE COUNTY
Report on Audit of Annual Expenditure Limitation Report
Year Ended June 30, 2001
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
Cochise County, Arizona
We have audited the accompanying Annual Expenditure Limitation Report of Cochise 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 Cochise 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.
CHRISTENSEN, GALE & MCLAREN, LLP
December 12, 2001
COCHISE COUNTY
Annual Expenditure Limitation Report - Part I
Year Ended June 30, 2001
See accompanying notes to report.
2
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:
Telephone Number: Date:
1. Economic Estimates Commission expenditure limitation $ 46,213,544
2. Amount subject to the expenditure limitation (total amount from
Part II, Line C) 45,107,134
3. Amount under the expenditure limitation $ 1,106,410
COCHISE COUNTY
Annual Expenditure Limitation Report - Part II
Year Ended June 30, 2001
See accompanying notes to report.
3
Special Capital
General Revenue Projects Enterprise
Description Fund Funds Funds Funds Total
A. Amounts reported on the Reconciliation,
Line D $ 32,422,955 $21,419,095 $4,019,093 $25,511,936 $ 83,373,079
B. Less exclusions claimed:
Debt service requirements on other long-term
obligations (Note 2) 514,115 8,331 522,446
Trustee of custodian (Note 3) 2,214,758 493,770 2,708,528
Grants and aid from the federal
government (Note 4) 328,813 7,570,605 7,899,418
Amounts received from the State of
Arizona (Note 4) 550,035 2,788,345 1,800,000 5,138,380
Highway user revenues in excess of
those received in fiscal year 1979-80
(Note 4) 4,997,173 4,997,173
Contracts with other political subdivisions
(Note 5) - - - 17,000,000 17,000,000
Total exclusions claimed 3,607,721 15,858,224 1,800,000 17,000,000 38,265,945
C. Amounts subject to the expenditure
Limitation $ 28,815,234 $ 5,560,871 $2,219,093 $ 8,511,936 $ 45,107,134
COCHISE COUNTY
Annual Expenditure Limitation Report - Reconciliation
Year Ended June 30, 2001
See accompanying notes to report.
4
Special Capital
General Revenue Projects Enterprise
Description Fund Funds Funds Funds Total
A. Total expenditures or expenses and applicable
other financing uses reported within the primary
government financial statements $36,425,704 $22,800,399 $4,019,093 $23,078,862 $86,324,058
B. Deductions:
Items not requiring use of working capital:
Depreciation 157,540 157,540
Landfill closure and postclosure care costs 229,834 229,834
Expenditures of separate legal entities
established under Arizona Revised Statutes
(A.R.S.) (Note 6) 1,478,953 1,478,953
Long-term care contributions withheld by the
State Treasurer (Note 7) 4,172,198 4,172,198
Total deductions 4,172,198 1,478,953 - 387,374 6,038,525
C. Additions:
Acquisition of capital assets 3,030,178 3,030,178
Internal service fund expenses not charged to
other funds 169,449 97,649 20,104 287,202
Landfill closure and postclosure care costs
recorded as expended in previous years (Note 9) - - - (229,834) (229,834)
Total additions 169,449 97,649 - 2,820,448 3,087,546
D. Amounts reported on Part II, Line A $32,422,955 $21,419,095 $4,019,093 $25,511,936 $83,373,079
COCHISE 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 and Expendable Trust
Funds for the General, Special Revenue, Debt Service, Capital Projects, or Expendable Trust
Funds; and to the Combined Statement of Revenues, Expenses, and Changes in Retained Earnings
(Fund Equity) All Proprietary Fund Types for the Enterprise and Internal Service Funds.
Note 2 - The exclusion claimed for debt service requirements on other long-term obligations in the General
Fund consists of principal retirement and interest expense. The exclusion claimed in the Special
Revenue Funds consists of principal payments and interest on capital leases.
Note 3 - The exclusion claimed for trustee or custodian consists of $2,214,758 in contributions 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 $199,872 in antiracketeering,
$176,363 in jail enhancement, and $117,535 in attorney criminal justice enhancement funds that
were reported as general expenditures.
Note 4 - The exclusion claimed for capital projects consists of $1,800,00 in State of Arizona grants from the
Arizona Supreme Court to help construct the Juvenile Center in Cochise County. 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.
COCHISE COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2001
6
Note 5 - The exclusion claimed for contracts with other political subdivisions of $17,000,000 in the Enterprise
Funds consists of charges for services expended. Charges for services of $1,540,981 have been
carried forward to future years, as current year expenses were primarily funded from retained
earnings.
General Fund Special Revenue Funds
Amount Amount
Amount Carried Amount Carried
Description Revenues Excluded Forward Revenues Excluded Forward
Grants and aid from the federal
government $ 328,813 $ 328,813 $ - $ 7,570,605 $ 7,570,605 $ -
Amounts received from the State
of Arizona 550,035 550,035 - 2,788,345 2,788,345 -
Highway user revenues in excess
of those received in fiscal year
1979-1980 - 4,997,173 4,997,173 -
Other revenues(nonexcludable) 10,981,804 - - 4,841,188 - -
Total intergovernmental revenues
as reported in the primary
government financial
statements $11,860,652 $ 878,848 $ - $20,197,311 $15,356,123 $ -
COCHISE COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2001
7
Note 6 - The deduction of $1,478,953 for separate legal entities established under Arizona Revised Statutes
consists of expenditures of special assessment districts and municipal property corporations
included within the County’s reporting entity but not included in the Economic Estimates Commission
base limit calculations. Deductions are reported in the following categories in the primary
government financial statements:
Note 7 - 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 8 - The addition for Internal service fund expenses not charged to other funds of $287,202 consists of
expenditures of $4,571,397 less Internal Service fund charges for services and health plan
contributions of $1,225,842 and $3,058,353, respectively. The deduction was allocated to the
various funds based on health plan contribution percentages.
Note 9 - The addition for landfill closure and post-closure care costs expended in previous years consists of
closure costs paid during the fiscal year.
Special
Revenue
Funds
General government $ -
Public safety 700,344
Culture and recreation 778,609
$1,478,953