Report on audit of annual budgeted expenditure limitation report: year ended June 30,... / Yuma/La Paz Counties Community College District (Arizona Western College)

              Expenditure Limitation Report
Yuma/La Paz Counties Community College District
(Arizona Western College)
Year Ended June 30, 2011
Financial Audit Division
Debra K. Davenport
Auditor General
A REPORT
TO THE
ARIZONA LEGISLATUREThe 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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www.azauditor.govYuma/La Paz Counties Community College District
(Arizona Western College)
Report on Audit of Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2011
Table of ContentsTable of ContentsTable of ContentsTable of Contents Table of Contents Table of Contents
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Independent Auditors Independent AuditorsIndependent Auditors Independent AuditorsIndependent AuditorsIndependent AuditorsIndependent AuditorsIndependent Auditors Independent AuditorsIndependent Auditors Independent Auditors ’ ReportReportReportReportReport
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Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report —Part IPart IPart I Part I
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Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation ReportAnnual Budgeted Expenditure Limitation Report Annual Budgeted Expenditure Limitation Report —Part IIPart IIPart II Part II
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Notes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation ReportNotes to Annual Budgeted Expenditure Limitation Report Notes to Annual Budgeted Expenditure Limitation Report
5 Independent Auditors’ Report
Members of the Arizona State Legislature
The Governing Board of
Yuma/La Paz Counties Community College District
We have audited the accompanying Annual Budgeted Expenditure Limitation Report of Yuma/La Paz Counties Community College District for the year ended June 30, 2011. 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 Yuma/La Paz Counties Community College District for the year ended June 30, 2011, 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, the Governing Board, management, and others within the District 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.
Jay Zsorey, CPA
Financial Audit Director
June 11, 2012 2
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(Arizona Western College)
Annual Budgeted Expenditure Limitation Report—Part II
Year Ended June 30, 2011
Current Funds
Plant Funds
Unrestricted
Auxiliary
Retirement of
General
Enterprises
Restricted
Unexpended
Indebtedness
Total
Description
A.
Total budgeted expenditures
35,262,844$
5,419,426$
29,404,115$
1,243,292$
9,027,154$
80,356,831$
B.
Less exclusions claimed:
Debt service requirements on bonded indebtedness
(Note 2)
9,027,154
9,027,154
Dividends, interest, and gains on the sale or redemption
of investment securities (Note 3)
122,409
4,970
48
20,871
148,298
Grants and aid from the federal government (Note 4)
24,102,412
24,102,412
Grants, aid, contributions, or gifts from a private agency,
organization, or individual, except amounts received in
lieu of taxes
557,654
557,654
Interfund transactions (Note 5)
221,702
221,702
Amounts accumulated for the purchase of land, and the
purchase or construction of buildings or improvements
(Note 6)
179,420
179,420
Tuition and fees (Note 7)
6,663,236
2,448,350
9,111,586
Total exclusions claimed
7,007,347
2,453,320
24,660,114
200,291
9,027,154
43,348,226
C.
Amounts subject to the expenditure limitation
28,255,497$
2,966,106$
4,744,001$
1,043,001$
-$
37,008,605$
See accompanying notes to report.
4Yuma/La Paz Counties Community College District
(Arizona Western College)
Notes to Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2011
5
Note Note 1 - Summary of Significant Accounting Policies Summary of Significant Accounting PoliciesSummary of Significant Accounting Policies Summary of Significant Accounting PoliciesSummary of Significant Accounting Policies Summary of Significant Accounting Policies Summary of Significant Accounting PoliciesSummary of Significant Accounting Policies Summary of Significant Accounting Policies Summary of Significant Accounting PoliciesSummary of Significant Accounting Policies Summary of Significant Accounting Policies Summary of Significant Accounting PoliciesSummary of Significant Accounting Policies Summary of Significant Accounting PoliciesSummary of Significant Accounting PoliciesSummary 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 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 Note 2 - The exclusion claimed for debt service requirements on bonded indebtedness of $9,027,154 is composed of the amounts reported as principal paid on capital debt and interest paid on capital debt on the Statement of Cash Flows—Primary Government.
Note Note 3 - Of the investment Of the investment Of the investment Of the investment Of the investment Of the investment Of the investment Of the investment Of the investment Of the investment Of the investment earnings earningsearningsearningsearnings of $190,033 of $190,033 of $190,033 of $190,033 reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, reported on the Statement of Revenues, Expenses, and and and and Changes Changes in Net Assetsin Net Assetsin Net Assetsin Net Assetsin Net Assets in Net Assetsin Net Assetsin Net Assets in Net Assets in Net Assets—Primary Government, only $Primary Government, only $ Primary Government, only $ Primary Government, only $ Primary Government, only $Primary Government, only $ Primary Government, only $ Primary Government, only $Primary Government, only $ Primary Government, only $Primary Government, only $Primary Government, only $Primary Government, only $ Primary Government, only $148,298 148,298 was expendwas expendwas expend was expend was expend was expended and claimed ed and claimed ed and claimed ed and claimed ed and claimed ed and claimed ed and claimed ed and claimed ed and claimed as an exclusion.as an exclusion. as an exclusion.as an exclusion.as an exclusion.as an exclusion. as an exclusion.as an exclusion. The remaining $ remaining $remaining $remaining $ remaining $ remaining $ remaining $41,73541,735 41,735 consists of consists of consists of consists of consists of consists of consists of consists of $743 of interest interest interest income income income income income in the the Loan Fund, Loan Fund, Loan Fund, Loan Fund, Loan Fund, Loan Fund, Loan Fund, Loan Fund, which waswhich was which waswhich was which waswhich waswhich was not excludable, and $not excludable, and $not excludable, and $ not excludable, and $ not excludable, and $not excludable, and $ not excludable, and $not excludable, and $not excludable, and $not excludable, and $not excludable, and $40,992 40,992 of investment nvestment nvestment nvestment nvestment nvestment earnings in earnings inearnings inearnings inearnings in earnings inearnings in the Retirement of the Retirement of the Retirement of the Retirement of the Retirement of the Retirement of the Retirement of the Retirement of the Retirement of the Retirement of the Retirement of Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years.Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years. Indebtedness Fund, which has been carried forward to future years.
Note 4Note 4 - Government grants revenue of $24,715,650 reported on the Statement of Revenues, Expenses, and Changes in Net Assets—Primary Government includes $24,102,412 from federal grants.
Note Note 5 - The exclusion of $221,702 claimed for interfund transactions in the General Fund consists of amounts expended from indirect cost recoveries that were budgeted as General Fund revenue and Restricted Fund expense. These indirect cost recoveries were eliminated from the financial statements for financial reporting purposes because they do not represent transactions to external parties. Yuma/La Paz Counties Community College District
(Arizona Western College)
Notes to Annual Budgeted Expenditure Limitation Report
Year Ended June 30, 2011
6
Note Note 6 - The exclusion of $179,420 claimed for amounts accumulated for the purchase of land, and the purchase or construction of buildings or improvements consists of monies accumulated in the Unexpended Plant Fund, with the District Governing Board’s approval, used for building improvements and is included in the amount reported as purchases of capital assets on the Statement of Cash Flows—Primary Government.
Note Note 7 - The District does not budget tuition and fees revenue net of scholarship allowances. Of the gross tuition and fees of $12,148,781 reported on the Statement of Revenues, Expenses, and Changes in Net Assets—Primary Government, only $9,111,586 was expended and claimed as an exclusion. The remaining $3,037,195 has been carried forward to future years. Yuma/La Paz Counties Community College District
(Central Arizona College)
Expenditure Limitation Report
Year Ended June 30, 2011
State of Arizona
Office of the Auditor General