Mohave County Community College District report on audit of annual budgeted expenditure limitation report: year ended ...

              A REPORT
ARIZONA LEGISLATURE
TO THE

Financial Audit Division Expenditure Limitation Report

Mohave County Community College District
Year Ended June 30, 2002

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.

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Mohave County Community College District Report on Audit of Annual Budgeted Expenditure Limitation Report Year Ended June 30, 2002 Table of Contents
Independent Auditors' Report Annual Budgeted Expenditure Limitation Report--Part I Annual Budgeted Expenditure Limitation Report--Part II Notes to Annual Budgeted Expenditure Limitation Report

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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 Mohave County Community College District We have audited the accompanying Annual Budgeted Expenditure Limitation Report of Mohave 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 Mohave 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.

November 6, 2003

Dennis L. Mattheisen, CPA Financial Audit Director

2910 NORTH 44 th STREET   SUITE 410   PHOENIX, ARIZONA 85018   (602) 553-0333   FAX (602) 553-0051

Mohave County Community College District Annual Budgeted Expenditure Limitation Report--Part I Year Ended June 30, 2002

1. Economic Estimates Commission expenditure limitation 2. Total amount subject to the expenditure limitation (from Part II, Line C) 3. Less expenditures of monies received pursuant to Arizona Revised Statutes  15-1472 (workforce development) 4. Adjusted amount subject to the expenditure limitation 5. Amount under the expenditure limitation $17,804,450 362,756

$17,652,638

17,441,694 $ 210,944

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: William H. Lovejoy, Vice President for Administration Telephone Number: (928) 715-4785 Date: November 6, 2003

See accompanying notes to report.

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Mohave County Community College District Annual Budgeted Expenditure Limitation Report--Part II Year Ended June 30, 2002
Current Funds Unrestricted Description A. Total budgeted expenditures B. Less exclusions claimed: Bond proceeds (Note 2) Debt service requirements on bonded indebtedness (Note 3) Proceeds from other long-term obligations (Note 2 ) Debt service requirements on other long-term obligations (Note 3) Dividends, interest, and gains on the sale or redemption of investment securities Grants and aid from the federal government (Note 4) Grants, aid, contributions, or gifts from a private agency, organization, or individual, except amounts received in lieu of taxes (Note 5) Amounts received from the State of Arizona for the purchase of land, and the purchase or construction of buildings or improvements Contracts with other political subdivisions (Note 6) Tuition and fees (Note 7) Total exclusions claimed C. Amounts subject to the expenditure limitation General $ 15,950,998 Auxiliary Enterprises $ 2,016,091 Restricted $ 2,543,556 Unexpended $ 3,010,996 1,024,907 189,000 1,415,347 779,737 72,483 135 1,768,495 Retirement of Indebtedness $ 1,196,515 Total $ 24,718,156 1,024,907 189,000 1,415,347 779,737 72,618 1,768,495 Plant Funds

93,511

61,096

195,387

47,530

397,524

470,900 65,584 91,278 322,856 $ 15,628,142 638,316 699,547 $ 1,316,544 $ 1,963,882 579,674 $ 2,958,684 52,312 $ 968,737 227,778

470,900 65,584 729,594 6,913,706 $ 17,804,450

See accompanying notes to report.
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Mohave County Community College District Notes to Annual Budgeted Expenditure Limitation Report Year Ended June 30, 2002 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 -

The Statement of Cash Flows reports payments made to contractors and purchases of capital assets of $2,135,562 and $304,692, respectively. Of these payments, $1,024,907 was expended from bond proceeds and claimed as an exclusion, and $1,415,347 was expended from proceeds from other long-term obligations and claimed as an exclusion. Exclusions claimed for debt service requirements on bonded indebtedness and debt service requirements on other long-term obligations are $189,000 and $779,737, respectively. Both amounts are included in the amounts reported as principal paid on capital debt and interest paid on capital debt on the Statement of Cash Flows. The exclusion claimed for grants and aid from the federal government of $1,768,495 was reported in the Statement of Revenues, Expenses, and Changes in Net Assets as government grants and contracts. The remaining government grants and contracts of $112,969 consist of nonexcludable revenues.

Note 3 -

Note 4 -

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Mohave County Community College District Notes to Annual Budgeted Expenditure Limitation Report Year Ended June 30, 2002

Note 5 -

The following schedule presents revenues reported on the Statement of Revenues, Expenses, and Changes in Net Assets from which an exclusion has been claimed for grants, aid, contributions, or gifts from a private agency, organization, or individual, except amounts received in lieu of taxes. Private grants and contracts Private gifts Capital grants and gifts Total $210,943 139,051 47,530 $397,524

Note 6 -

The exclusion claimed for contracts with other political subdivisions of $65,584 was reported in the Statement of Revenues, Expenses, and Changes in Net Assets as other sales and services. The remaining other sales and services revenues of $25,066 are nonexcludable. Of the gross tuition and fees of $2,270,822 reported on the Statement of Revenues, Expenses, and Changes in Net Assets, only $729,594 was expended and claimed as an exclusion. The remaining $1,541,228 has been carried forward to future years.

Note 7 -

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