Comprehensive annual financial report / Cochise County Community College District

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Comprehensive Annual Financial Report

Fiscal Year Ended: June 30, 2005



Cochise County Community College District Douglas, Arizona



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Comprehensive Annual Financial Report

Fiscal Year Ended: June 30, 2005



Published and distributed by The Office of Financial Operations Cochise County Community College District 4190 W. Hwy 80 Douglas, Arizona, 85607-6190



www.cochise.edu

C R E AT I N G OPPORTUNITIES...CHANGING LIVES



Cochise County Community College District

Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2005



Table of Contents Introductory Section

Letter of Transmittal List of Principal Officers Organizational Chart 1 10 11



Financial Section

Independent Auditors' Report Management's Discussion and Analysis Basic Financial Statements: Statement of Net Assets � Primary Government Statement of Financial Position � Component Unit Statement of Revenues, Expenses and Changes in Net Assets � Primary Government Statement of Activities � Component Unit Statement of Cash Flows � Primary Government Notes to Financial Statements 13 15 23 24 25 26 27 29



Statistical Section

Revenues by Source � Last Four Fiscal Years Expenses by Function � Last Four Fiscal Years Expenditure Limitation � Last Ten Fiscal Years Property Tax Levies and Collections � Last Ten Fiscal Years Assessed and Current Market Value of All Taxable Property � Last Ten Fiscal Years Property Tax Rates, Direct and Overlapping Governments � Last Ten Fiscal Years Principal Taxpayers Computation of Legal Debt Margin Assessed Valuation, Tax Rate and Levy History � Last Ten Fiscal Years Ratio of Annual Debt Service Expenditures for Certificates of Participation to Operating Expenses/Expenditures � Last Ten Fiscal Years Certificates of Participation Coverage � Last Ten Fiscal Years Historic Enrollment � Last Ten Fiscal Years Student Enrollment/Demographic Statistics � Last Ten Fiscal Years Economic Indicators for Cochise County Miscellaneous Demographic Statistics 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55



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October 26, 2005 The District Governing Board of Cochise County Community College District The Comprehensive Annual Financial Report (CAFR) of the Cochise County Community College District (the "District"), Douglas, Arizona for the fiscal year ended June 30, 2005, is submitted herewith. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rest with the District. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the District. All disclosures necessary to enable the reader to gain an understanding of the District's financial activities have been included. Please read the section entitled Management's Discussion and Analysis in conjunction with this transmittal letter from the Interim Vice President for Administration. This report is prepared in accordance with generally accepted accounting principles (GAAP) and in conformance with standards of financial reporting as established by the Government Accounting Standards Board (GASB) using the guidelines as recommended by the Government Finance Officers Association of the United States and Canada (GFOA). This report has been separated into three sections: 1. Introductory Section - this section introduces the reader to the report and includes the Letter of Transmittal from the Interim Vice President for Administration, a list of principal officers, and the District's organizational chart. Financial Section � this section includes the independent auditors' report on the financial statements of the District, the Management's Discussion and Analysis report, the basic financial statements and notes to the financial statements. Statistical Section � this section includes tables of unaudited data depicting the financial history of the District on a multi-year basis and other demographic information.



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The District is required to undergo a single audit in conformity with the provisions of the Single Audit Act Amendments of 1996; the U.S. Office of Management and Budget Circular A-133; and Government Auditing Standards issued by the Comptroller General of the United States. Information related to this report including the auditors' reports on internal controls and compliance with applicable laws and regulations will be available at a future date by contacting the Interim Vice President for Administration.



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THE REPORTING ENTITY The District is an independent reporting entity within the criteria established by GAAP and the GASB. Although the District shares the same geographic boundaries with Cochise County, financial accountability over all activities related to public community college education in Cochise County is exercised solely by the District. In accordance with GASB Statement No. 39, the financial reporting entity consists of a primary reporting entity and its component units. The District is a primary government because it is a special-purpose political subdivision that has a separately elected governing body, is legally separate, and is fiscally independent of other state and local governments. The accompanying financial statements present the activities of the District and its component unit, the Cochise College Foundation (Foundation). The Foundation is a legally separate, tax-exempt organization. Although the District does not control the timing or amount of receipts from the Foundation, the Foundation's restricted resources can only be used by, or for the benefit of, the District. Consequently, the Foundation is considered a component unit of the District and is discretely presented in the District's financial statements. HISTORY The Cochise County Community College District was organized in 1961. Ground was broken for the Douglas Campus in 1962 and the College opened its doors to the first students in September, 1964. Having also served students at Fort Huachuca and in Sierra Vista since the mid-1960's, Cochise College opened its Sierra Vista Campus in 1978. However, with a constituency base that encompasses over 6,000 square miles, the College began to reach out into some of the more rural parts of Cochise County. In 1988, the Willcox Center was opened for residents in that part of the county and in 2000, Cochise College expanded further by opening the Benson Center to better serve the educational needs of residents in Benson, St. David and the surrounding communities. Additional Extended Learning sites have been developed in various locations throughout the county and in adjoining areas as demand has dictated. The District is accredited by the Higher Learning Commission and the Nursing program is further accredited by the National League for Nursing Accrediting Commission and approved by the Arizona State Board of Nursing. The Professional Flight and the Aviation Maintenance Technology programs are certified to operate under Air Agency Certificates issued by the Federal Aviation Administration.



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SERVICE AREA Cochise County's location on the borders of Mexico and New Mexico makes it a unique crossroads of cultural, natural and historical attractions. Named for the famed chief of the Chiricahua Apaches, Cochise County encompasses 6,200 square miles (larger than Connecticut) with a current population of approximately 133,000. Cochise County was established on February 1, 1881. The county was formed out of eastern Pima County, and Tombstone was designated as the county seat. In 1929, the seat was moved to Bisbee, a former hub of copper mining. The historic Old West towns of Tombstone, Bisbee, Douglas, Willcox and Benson are located within the county, and Sierra Vista � the county's primary population center � is home to Fort Huachuca, the U.S. Army intelligence center. In addition, Cochise County's mountain ranges and desert grasslands make it an important destination for migratory birds. The county's temperate climate, open spaces, and proximity to the international border with Mexico make it one of the most culturally, historically and geographically diverse areas in the American Southwest.



ECONOMIC OUTLOOK The population of Cochise County, as of mid-2004, was 130,220, according to estimates by the Arizona Department of Economic Security (DES). According to population projections by the Cochise College Center for Economic Research (CER), the county's population is expected to reach 149,220 by 2010 and 165,457 by 2015, an average annual growth rate of 2.2 percent. The primary industry in Cochise County is agriculture, accounting for 32% of total employment in 2004, according to DES estimates. The second largest industry is government, which accounts for 22% of the county's total employment and 33% of nonfarm employment. Federal government employees (excluding military personnel) account for 41% of total government employees, with state and local government accounting for the remaining 59%. The third largest industry in the county is trade, transportation, and utilities, accounting for 12% of the county's total employment. The communities of Cochise County have diverse economic bases. Sierra Vista, the county's largest economy, relies heavily on its retail trade, accommodation, and restaurant and bar industries, which are fueled by activity at Fort Huachuca. A recent influx of defense contractors supporting operations at the fort as well as an increase in students at the Army Intelligence Center and School, have ensured the continued strength of the city's economy. The Defense Department's decision to maintain the current level of operations at Fort Huachuca during the recent Base Realignment and Closure (BRAC) process promises to spur increased commercial development and residential construction in Sierra Vista and surrounding areas.

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The cities of Bisbee and Tombstone rely heavily on tourism-related commerce. The opening of Kartchner Caverns in the late 1990s added the City of Benson to those areas of the county heavily reliant on tourism. The cities of Benson and Willcox, because of their location along Interstate 10, also rely heavily on accommodation and restaurant and bar sales tied to commercial traffic passing through the area. The City of Douglas has a large retail sector, and is heavily dependent on day shoppers who cross the border from neighboring Agua Prieta, Sonora, Mexico. Much of the remainder of the county relies on the agriculture industry for its lifeblood. The Cochise College District receives much of its funding from local property taxes. In 2004, there were 1,046 building permits issued for the construction of single family homes in the county, a 13 percent increase from 2003. For the first 9 months of 2005, single family residential permits totaled 887, up 19.1 percent from 745 in the same period of 2004. County property tax revenues are projected to grow by 8.9 percent for the fiscal year 200506, according to the Cochise County annual budget. The CER projects a greater increase in the property tax base due primarily to higher rates of construction. Higher property values and increased construction, including commercial construction in Sierra Vista, Benson, and Douglas, will continue to increase local property tax revenue, expanding the college's tax base. The CER estimates average annual job growth in the county of 2.5 percent between 2005 and 2010. The fastest growing industries between 2005 and 2008 are projected to be mining and construction, forecasted to grow at an average annual rate of 6.3 percent; financial activities, projected to grow by 3.9 percent annually; educational and health services, projected to grow by 3.6 percent per year; and federal government jobs, projected to grow at an annual rate of 3.5 percent. The only industry projected to experience a decrease in the number of jobs is manufacturing, forecasted to decline at an average annual rate of 1.4 percent between 2005 and 2008. Cochise County's unemployment rate in 2004 was 5 percent, according to DES estimates. The county labor force consisted of 54,450 actual or potential workers, of which 51,750 were actually employed. The labor force includes those persons aged 16 years and older who are employed or actively seeking work. From January through August 2005, the county's seasonally adjusted unemployment rate was 4.7 percent. Inflationary pressures spurred by Gulf Coast storms, along with tighter monetary policy at the national level threaten to increase unemployment locally. The CER projects the county's unemployment rate to stabilize near 5 percent from 2005 to 2007. Over the next few years, the economy of Cochise County will continue to grow, fueled primarily by increases in the population, increased construction, increasing activity at Fort Huachuca as the demand for trained military intelligence specialists grows, and a strong tourism industry.



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MAJOR PROGRAM INITIATIVES Cochise College has made significant strides during the past year in the areas of master facilities planning to accommodate anticipated growth, increased enrollment through development of extended learning opportunities, and continuous improvement in student achievement. Master Facilities Plan Development of a Master Facilities Plan was initiated late in the fiscal year ended June 30, 2004, but broadly advanced and communicated in this last fiscal year. The College engaged the services of a team of master planning consultants, led by The Acacia Group from Tucson to assist with the development of the plan. The plan will encompass the facilities needs throughout the District for the next ten-to-fifteen years, driven by three critical factors: � � � Modernization of substandard facilities Upgrading of classroom technology and learning environments Creation of space for future growth



Throughout the year, meetings were held with every department at every location, over 50 meetings in total, to identify classroom, lab and office space needs, to analyze facility deficiencies and to forecast departmental growth. The results of these meetings were consolidated by location to form the base square footage needs for the master facilities plan. In addition, a classroom utilization analysis was conducted to help determine the number and size of classrooms required. The Facilities Management department, assisted by the master planning consultants, performed an assessment of existing buildings to determine the level of renovation required. Many of the buildings on the Douglas and Sierra Vista campuses are over 30 years old and require substantial renovations of major building systems. To assist the College with forecasting enrollment growth, the College engaged Applied Economics of Phoenix, Arizona to perform a Cochise County demographic forecast. The study provided population forecasts for five, ten, fifteen and twenty years for the county and six regions within the county. All of the above information was combined to form a comprehensive master facilities plan. The plan calls for new construction, renovations to existing buildings, demolition of certain non-repairable buildings and general site improvements at all locations within the District. Funding for the master facilities plan will require General Obligation Bond financing; a General Obligation Bond Election is targeted for November, 2006.



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Enrollment Unduplicated headcount rose a respectable 7.2% in the most recently completed fiscal year, with over 13,000 students taking classes in more than 60 disciplines. District-wide, FTSE increased 9.3% over the prior fiscal year. The College's continuing responsiveness to the area's largest employer, Fort Huachuca, was a significant factor in the College's growth in both headcount and FTSE in fiscal year 2004-05. Student Achievement Student accomplishments continue to be our most important gauge of success. During the 2004-05 academic year, Cochise College served a total of 6,577 FTSE and an annual unduplicated headcount of 13,616. A total of 409 degrees and 122 certificates were awarded in 2004-05. In addition, four students were named to the All-Arizona Academic Team; two of the students were named to the Second Team, and two of the students were named to the First Team, one of whom was later named the sole recipient in Arizona of the prestigious Jack Kent Cooke Scholarship, awarded to only 25 community college students nation-wide. FUTURE PROGRAM INITIATIVES Through a combination of the District tax-based dollars and the state's Proposition 301 funds, the 2005-06 budget will continue to support new programming in critically-needed areas of workforce development. Concurrently, the College continues to assess local needs throughout Cochise County; as such, it currently is investigating the addition of new allied health programs, the expansion of its nursing program and, in collaboration with local school districts, it is exploring the possibility of establishing either Middle or Early College High Schools at both its Douglas and Sierra Vista Campuses. Effective with the fall semester of 2005, the College has added an English-Spanish interpretation/translation program, an automotive technology program at its Ft. Huachuca center, and has expanded its early childhood education, building and construction trades, graphic arts and information security programs. Potential programs for which needs assessments are currently underway include veterinary technician, heavy equipment operations and expansion of the music program. Academic program reviews scheduled for the current year include art, early childhood education, teacher education, emergency medical technology, fire science technology, foreign languages, health and physical education, social sciences and theater. Educational service area program reviews scheduled for the current year include testing, tutoring, Benson Center, Nogales Center, Willcox Center, financial aid, residence halls/housing, Small Business Development Center and the Online Campus.



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FINANCIAL INFORMATION Effective management of the College's funds through internal control, budgetary controls, cash management, and financial reporting comprises the District's responsibilities for stewardship, safeguarding of assets, and accountability to resource providers. Additional information relating to the College's financial management can be found in the Statistical Review Section at the back of this report. Internal Control In developing and evaluating the District's accounting system, consideration is given to the adequacy of internal controls. Internal controls are designed to provide reasonable, but not absolute assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived from that control element, and that the evaluation of costs and benefits requires estimates and judgments from management. All internal control evaluations occur within the above framework. We believe that the District's internal controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary Controls The District maintains budgetary controls in the form of line item budgets and budget transfer restrictions by function and object. The objective of these budgetary controls is to ensure compliance with the annual budget adopted by the District Governing Board. The District complies with state statutes requiring that a report of the District's adopted budget be published annually within the prescribed format as required by the State of Arizona, Office of the Auditor General. The District also complies with Arizona statutes governing community colleges by issuing an annual budgeted expenditure limitation report that is examined by the Office of the Auditor General. The expenditure limitation calculation determines the maximum allowable expenditure supported by state appropriations and property tax levies. Cash Management The District is governed by the Arizona Revised Statutes relating to the overall investment of idle public funds. The fiduciary responsibility of such investments is entrusted to the District Governing Board and orchestrated through the Vice President for Administration.



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The District invests idle funds in a prudent, conservative, and secure manner for the highest available yield as prescribed by Arizona Revised Statutes. The District has maintained a cash-forecasting program to obtain the highest yield on idle cash. The principal investment vehicles used during the fiscal year have been a pooled investment with the County Treasurer and with the LGIP (Local Government Investment Pool). These pools have provided the District with safe, high yielding liquid investments. Financial Reporting This Comprehensive Annual Financial Report (CAFR) for the District, the first ever compiled, was formulated with data from several sources including District records and the Cochise County Treasurer's and Assessor's Offices. The statements present information on the financial condition of the District and whether resources were adequate to cover the costs of providing services during the reporting period. The District's CAFR will be distributed to the District Governing Board and executive management, Federal and State agencies, and financial institutions as well as others throughout the general public. Internal management reports are customized and provided to meet the information and decisionmaking needs at all levels of the organization and to aid management in the allocation of resources. The Notes to the Financial Statements are an integral part of this Comprehensive Annual Financial Report and should be read for a full understanding of the financial information herein presented. RISK MANAGEMENT The District maintains a full complement of insurance coverage in accordance with Arizona Revised Statutes. Liability coverage is carried on a broad basis, including errors and omissions and "wrongful acts" coverage and is maintained with policy limits in excess of $25,000,000. Property coverage is maintained on a replacement value basis in accordance with an agreed upon schedule of values. Additional coverage includes auto fleet liability, crime and fidelity coverage, boiler and machinery insurance, workers' compensation and student accident coverage. District staff includes a recently-hired full-time employee dedicated to the risk management function whose responsibilities include minimization of the cost of funding risks through the implementation of safety and loss procedures across the District. INDEPENDENT AUDIT The District utilizes the audit services of Heinfeld, Meech & Co., P.C. to ensure compliance with Arizona Revised Statutes requiring an annual audit of the District's financial statements. The Independent Auditor's Report is included in this CAFR. The District received an unqualified opinion for the fiscal year ended June 30, 2005.

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GFOA CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awards Certificates of Achievement for Excellence in Financial Reporting each year for comprehensive annual financial reports meeting certain criteria established by that organization. In order to earn such a Certificate of Achievement, a governmental entity must publish an easily readable and efficiently organized comprehensive annual financial report (CAFR). This report must satisfy both generally accepted accounting principals and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. Cochise College believes that the current comprehensive annual financial report, the first such report submitted to the GFOA by the District, will meet the Certificate of Achievement Program requirements. The College is submitting this CAFR to the GFOA to determine its eligibility for such a certificate. ACKNOWLEDGEMENTS The preparation of this report could not have been accomplished without the dedicated efforts of the Finance Office staff as well as others within the College community and the Cochise County Assessor's and Treasurer's offices. We would like to acknowledge these individuals and express our appreciation to all those who assisted in and contributed to the preparation of this report. Respectfully submitted,



Terry W. Bowmaster Interim Vice President for Administration



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT PRINCIPAL OFFICERS

June 30, 2005



DISTRICT GOVERNING BOARD

Mrs. Jan Guy, Chair, District 5 Dr. Michael J. Carter, Secretary, District 2 Mrs. Jane C. Strain, District 3 Dr. John M. Eaton, District 4 Mr. David DiPeso, District 1

(effective July 27, 2005; position vacant at June 30, 2005)



PRESIDENT

Dr. Karen A. Nicodemus



ADMINISTRATION

Dr. Joanna K. Michelich, Vice President for Instruction/Provost Mr. Terry W. Bowmaster, Interim Vice President for Administration Mr. Carlos Cartagena, Vice President for Information Technology Mr. Neil Goodell, Vice President for Institutional Advancement

(effective October 11, 2005)



Mr. Robert Howell, Associate Vice President for Human Resources



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2005



This section of Cochise County Community College District's (District) financial statements presents Management's Discussion and Analysis (MD&A) of the District's financial activity for the year ended June 30, 2005. It should be read in conjunction with the District's financial statements, which can be found following the MD&A.



Basic Financial Statements The basic financial statements consist of the following: The Statement of Net Assets reflects the financial position of the District at June 30, 2005. It shows the various assets owned or controlled by the District, related liabilities and other obligations, and the various categories of net assets. Net assets is defined as total assets less total liabilities, and as such, represents the institutional equity or ownership in the total assets of the District. The Statement of Revenues, Expenses, and Changes in Net Assets reflects the results of operations and other changes for the year ended June 30, 2005. It shows the various revenues and expenses, both operating and non-operating, reconciling the beginning net assets balance to the ending net assets balance, shown on the Statement of Net Assets described above. The Statement of Cash Flows reflects the inflows and outflows of cash and cash equivalents for the year ended June 30, 2005. It indicates the various cash activities by type, reconciling the beginning cash and cash equivalents balance to the ending cash and cash equivalents balance, shown on the Statement of Net Assets described above. In addition, this statement reconciles cash flows used for operating activities to operating loss on the Statement of Revenues, Expenses, and Changes in Net Assets described above. Although the primary focus of this document is on the results of activity for fiscal year 2004-05, comparative data is presented for the previous fiscal year 2003-04. This Management's Discussion and Analysis (MD&A) uses the prior fiscal year as a reference point in illustrating issues and trends for determining whether the institution's financial health has improved or deteriorated.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2005 Condensed Financial Information Statement of Net Assets As of June 30, 2005 Assets Current assets Noncurrent assets, other than capital assets Capital assets, net Total assets, net Liabilities Other liabilities Long-term liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Restricted Unrestricted Total net assets $18,657,386 989,933 11,683,756 31,331,075 2,450,554 1,984,434 4,434,988 10,628,755 2,729,746 13,537,586 $26,896,087



As of June 30, 2004 $14,366,719 456,680 12,029,501 26,852,900 2,745,578 2,266,783 5,012,361 10,749,501 1,910,376 9,180,662 $21,840,539



The District's overall financial position improved in fiscal year 2004-05. Total assets increased by $4.5 million while total liabilities decreased by $0.6 million. Total net assets increased by $5.1 million, compared to an increase of $3.5 million in the prior year, largely as a result of a $4.5 million revenue increase ($1.7 million operating, $2.8 million non-operating), while expenses increased only $3.1 million. This was driven primarily by an increase in property tax revenue ($0.8 million) as assessed valuations in the District continued to increase, an increase in state appropriations ($1.9 million) due to an increase in FTSE (Full-Time Student Equivalents) form 2003 (Current state aid is based in part on prior years' FTSE counts.), and capital appropriations support, an increase in grant revenue ($0.6 million) and an increase in other operating revenue ($0.8 million) with the establishment of a new Information Technology certificate training program in El Paso, TX. At the same time, revenues in auxiliary enterprises exceeded expenses by $0.3 million while revenues in restricted funds exceeded expenses by $0.5 million. During the year, long-term liabilities decreased by $0.3 million and other liabilities also decreased by $0.3 million. For fiscal 2004-05, current assets were roughly 5.4 times the level of current liabilities. The increase in current assets was mostly due to revenues exceeding expenditures by $5.1 million, which resulted from revenue increases in property tax, state appropriations, grants and other areas as noted above while expenditures associated with these activities and expanded enrollment grew at a slower rate. Unrestricted net assets rose by $4.4 million in the fiscal year ending June 30, 2005, an increase of 47.5 percent. Unrestricted net assets were 50.3 percent of total net assets, up from 42.0 percent in the prior fiscal year. This significant increase in unrestricted net assets largely accounts for the yearover-year percentage decrease in investments in capital assets, net of related debt, as a percentage of total net assets, moving from 49.2 percent last year to 39.5 percent in the year ended June 30, 2005.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2005



Statement of Revenues, Expenses, and Changes in Net Assets Fiscal Year Ended June 30, 2005 $4,104,156 8,068,675 2,210,276 14,383,107 31,485,813 (17,102,706) 10,910,652 9,384,000 771,765 250,213 (70,576) 21,246,054 4,143,348 912,200 5,055,548 21,840,539 $26,896,087 Fiscal Year Ended June 30, 2004 $3,874,044 7,357,217 1,478,572 12,709,833 28,398,570 (15,688,737) 10,144,554 7,748,800 588,067 92,798 (84,098) 18,490,121 2,801,384 681,800 3,483,184 18,357,355 $21,840,539



Operating Revenues Tuition and fees (net of scholarship allowances) Grants and contracts Other operating revenues Total operating revenues Total operating expenses Operating loss Nonoperating revenues (expenses) Property taxes State appropriations Other nonoperating revenues Investment income Interest on capital asset-related debt Net nonoperating revenues Excess before capital appropriations Capital appropriations Increase in net assets Total net assets, beginning of year Total net assets, end of year



Total operating revenues increased in fiscal year 2004-05 by $1.7 million with the most significant increase being in auxiliary enterprise revenues of $0.8 million, a 160 percent increase due to a new contract with IT Network Academy in El Paso, Texas for a new certificate training program. In addition, grants and contracts revenues increased $0.7 million (9.7%) and tuition and fees revenues increased $0.2 million (5.9%) versus prior year. Nonoperating revenues increased $2.8 million versus the prior year. While the property tax rate did not increase, rising valuation of existing properties and new construction resulted in an increase of $0.8 million (7.6%) in property tax levy revenue. State appropriations increased by $1.9 million (22.1%) over the prior year, $1.6 million of which was in support of ongoing operations and resulted from a significant increase in student enrollment in fiscal year 2002-03, the base year on which a portion of the state aid for fiscal year 2004-05 is calculated. Net investment income in the period rose from the prior year by $0.2 million due to rising interest rates and greater investment balances.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2005



Operating expenses increased by $3.1 million for the year ended June 30, 2005. The significant increases were as follows: Increase ($ 000) Salaries, wages and benefits Health insurance premiums Non-expendable items Computer Insurance Memberships Licenses, permits, fees Auxiliary expenditures $ 670 155 399 116 117 43 51 1,003 Increase ___(%)_ 4.6 % 12.6 595.5 78.4 43.9 88.5 83.9 62.5



Salaries, wages and benefits rose overall by 4.6 percent as a result of a 4.0 percent salary increase and the addition of several new positions throughout the District. The College upgraded and replaced a large number of its computers during the fiscal year 2004-05. The College also replaced most classroom furniture resulting in a large increase in non-expendable items. Auxiliary expenses increased largely due to a new contract with IT Network Academy located in El Paso, Texas for certificate training, which accounted for $0.7 million of the $1.0 million increase in auxiliary fund expenditures.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2005 The following is a summary of revenues for fiscal years ended June 30, 2005 and June 30, 2004: Fiscal Year Ended June 30, 2005 Operating revenues Tuition and fees (net of scholarship allowances) Grants and contracts Commissions and rents Other operating revenues Total operating revenues Nonoperating revenues Property taxes State appropriations Investment income Other nonoperating revenues Total nonoperating revenues Capital appropriations Total revenues $ 4,104,156 8,068,675 678,778 1,531,498 14,383,107 10,910,652 9,384,000 250,213 771,765 21,316,630 912,200 $36,611,937 11% 22 2 4 39 30 26 1 2 59 2 100% Fiscal Year Ended June 30, 2004 $ 3,874,044 7,357,217 609,115 869,457 12,709,833 10,144,554 7,748,800 92,798 588,067 18,574,219 681,800 $31,965,852 12% 23 2 3 40 32 24 2 58 2 100%



Revenues by Source - 2005

Other nonoperating revenues Investment income State appropriations Capital appropriations Tuition and fees (net of scholarship allowances) Grants and contracts



Property taxes



Other operating revenues



Commissions and rents



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2005



The following is a summary of expenses for fiscal years ended June 30, 2005 and June 30, 2004: Fiscal Year Ended June 30, 2005 Operating expenses Education and general: Instruction Public service Academic support Student services Institutional support Operation and maintenance of plant Scholarships Auxiliary enterprises Depreciation Total operating expenses Nonoperating expenses Interest expense on debt Total expenses $12,460,037 561,156 1,051,477 2,887,048 5,005,656 2,716,508 3,009,865 2,604,560 1,189,506 31,485,813 70,576 $31,556,389 39% 2 3 9 16 9 10 8 4 100 100% Fiscal Year Ended June 30, 2004 $11,664,764 456,122 903,969 2,726,816 4,317,051 2,588,501 3,027,789 1,601,063 1,112,495 28,398,570 84,098 $28,482,668 41% 2 3 9 15 9 11 6 4 100 100%



Expenses by Program - 2005

Auxiliary enterprises Scholarships Operation and maintenance of plant Institutional support Student services Interest expense on debt Instruction



Depreciation



Public service Academic support



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2005



Capital Assets Below is a summary of the capital assets, net of depreciation, as of June 30, 2005 and June 30, 2004. See Note 3 for further details. As of June 30, 2005 $ 495,580 8,614,317 911,596 1,342,149 285,464 34,650 $11,683,756 As of June 30, 2004 $ 495,580 8,703,113 1,099,257 1,424,005 271,796 35,750 $12,029,501



Land Buildings Equipment Improvements other than buildings Library books Museum and art collection Total Long-Term Debt



At June 30, 2005 and June 30, 2004, the District had one certificate of participation issue outstanding totaling $1.1 million and $1.3 million, respectively. No new debt was issued during the fiscal year. See Note 4 for further details. Current Economic Conditions The population of Cochise County in mid-2004 was approximately 130,000 according to estimates from the Arizona Department of Economic Security. The principal industry in the County was agriculture, accounting for 32% of total 2004 employment, followed by government (22%) and trade, transportation and utilities (12%). Sierra Vista, accounting for approximately 50% of the population of Cochise County and representing the largest local economy, remained dependent upon retail, accommodation and restaurant/bar industries, all of which in turn were fueled primarily by Fort Huachuca. The Defense Department's recent decision to maintain/expand operations at the Fort fueled growth in the Sierra Vista economy during the year. The City of Douglas was also heavily dependent on retail trade, primarily focused on day shoppers coming across the border from Mexico. Current Factors Having Probable Future Financial Significance The financial condition of the College remains robust, driven largely by increases in property assessed valuations (see above) and state appropriations. During the current 2005-06 fiscal year, state appropriations to the District were increased by $1.9 million (including capital aid), or approximately 20.1 percent. Financial support from the state has continued to grow in line with fulltime student equivalents (FTSE). No increase in tuition was taken in FY2005-06 and consideration is being given to a modest increase for the upcoming fiscal year. The District is currently developing a Master Facilities Plan to address the future direction and growth of the college while finding the best ways to meet the educational needs of the county.



21



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2005



Requests for Information This discussion and analysis is designed to provide a general overview of the Cochise County Community College District's finances for all those with an interest in such matters. Questions concerning any of the information provided in the financial statements or requests for additional financial information should be addressed to the Office of the Director of Financial Operations, Cochise County Community College District, 4190 West Highway 80, Douglas, Arizona 85607.



22



Cochise County Community College District Statement of Net Assets - Primary Government June 30, 2005

Business-Type Activities Assets Current Assets: Cash and cash equivalents Receivables: Accounts (less allowances of $299,113) Property taxes (less allowances of $298,213) Government grants and contracts Interest Other Inventories Prepaid items Total current assets Noncurrent assets: Restricted assets: Cash and cash equivalents Cash and investments held by trustee Capital assets, not being depreciated Capital assets, being depreciated, net Total noncurrent assets Total assets Liabilities Current liabilities: Accounts payable Accrued payroll and employee benefits Interest payable Deposits held in custody for others Deferred revenues Current portion of compensated absences payable Current portion of long-term debt Total current liabilities Noncurrent liabilities: Compensated absences payable Long-term debt Total non-current liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Restricted for: Expendable: Capital projects Debt service Grants and contracts Unrestricted Total net assets



$ 15,938,260 1,010,039 560,799 294,125 45,090 377,895 305,896 125,282 18,657,386



957,300 32,633 495,580 11,188,176 12,673,689 31,331,075



449,517 745,420 31,529 200,294 1,023,794 767,000 240,000 3,457,554



162,434 815,000 977,434 4,434,988



10,628,755



1,647,406 134,560 947,780 13,537,586 $ 26,896,087



See accompanying notes to financial statements.

23



Cochise County Community College District Statement of Financial Position - Component Unit June 30, 2005



Cochise College Foundation Assets Current Assets: Cash and cash equivalents Note receivable Total current assets Noncurrent assets: Investments Investments held for endowment purposes Land held as an investment Total noncurrent assets Total assets Net Assets Unrestricted Temporarily restricted Permanently restricted Total net assets $



$



221,483 40,500 261,983



832,999 1,322,878 99,211 2,255,088 2,517,071



$



380,791 813,402 1,322,878 2,517,071



See accompanying notes to financial statements.

24



Cochise County Community College District Statement of Revenues, Expenses, and Change in Net Assets - Primary Government For the Year Ended June 30, 2005

Business-Type Activities Operating revenues: Tuition and fees (net of scholarship allowances of $2,062,728) Government grants and contracts Private grants and contracts Bookstore income Food service income Dormitory rentals and fees Other Total operating revenues Operating expenses: Educational and general: Instruction Public service Academic support Student services Institutional support Operation and maintenance of plant Scholarships Auxiliary enterprises Depreciation Total operating expenses Operating loss Nonoperating revenues (expenses): Property taxes State appropriations Share of state sales taxes Investment income Interest on capital asset-related debt Net nonoperating revenues Income before other revenues, expenses, gains, or losses Capital appropriations Increase in net assets Total net assets, July 1, 2004 Total net assets, June 30, 2005 $



$



4,104,156 7,996,983 71,692 165,000 303,693 210,085 1,531,498 14,383,107



12,460,037 561,156 1,051,477 2,887,048 5,005,656 2,716,508 3,009,865 2,604,560 1,189,506 31,485,813 (17,102,706)



10,910,652 9,384,000 771,765 250,213 (70,576) 21,246,054 4,143,348 912,200 5,055,548 21,840,539 26,896,087



See accompanying notes to financial statements.



25



Cochise County Community College District Statement of Activities - Component Unit For the Year Ended June 30, 2005



Support and revenue: Contributions $ Grants Investment income Investment return on land sales Other Total support and revenue before net assets released from restriction Net assets released from restriction Total support and revenue Expenses: Program expenses: Scholarships Special programs Other programs Total program expenses Supporting services: Salaries and wages Other Total supporting services Total expenses Change in net assets Net assets, beginning of year Net assets, end of year $



Unrestricted 34,108 9,000 92,604 224 135,936 476,943 612,879 $



Cochise College Foundation Temporarily Permanently Restricted Restricted 613,373 68,674 119,035 $ 86,866 $



Total 734,347 9,000 161,278 119,035 224 1,023,884



801,082 (476,943) 324,139



86,866



86,866



1,023,884



363,819 53,557 59,567 476,943



363,819 53,557 59,567 476,943



35,767 4,002 39,769 516,712 96,167 284,624 380,791 $ 324,139 489,263 813,402 $ 86,866 1,236,012 1,322,878 $



35,767 4,002 39,769 516,712 507,172 2,009,899 2,517,071



See accompanying notes to financial statements.

26



Cochise County Community College District Statement of Cash Flows - Primary Government For the Year Ended June 30, 2005

Business-Type Activities Cash flows from operating activities: Tuition and fees Grants and contracts Bookstore receipts Food services receipts Dormitory rentals and fees Other receipts Payments to suppliers and providers of goods and services Payments to employees Payments for scholarships Other payments Net cash used for operating activities Cash flows from noncapital financing activities: Property taxes State appropriations Share of state sales taxes Federal family education loan receipts Federal family education loan disbursements Short-term loans received Short-term loans disbursed Deposits held in custody for others received Deposits held in custody for others disbursed Net cash provided by noncapital financing activities Cash flows from capital and related financing activities: Capital appropriations Principal paid on capital debt Interest paid on capital debt Purchases of capital assets Net cash used for capital and related financing activities Cash flows from investing activities: Investment Income Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents, July 1, 2004 Cash and cash equivalents, June 30, 2005 $ $ 3,998,007 8,137,157 163,576 304,205 210,085 1,465,627 (7,321,223) (19,955,646) (3,009,865) (170,443) (16,178,520)



10,930,279 9,384,000 757,912 2,783,363 (2,786,886) 2,557 (2,350) 1,347,688 (1,357,576) 21,058,987



912,200 (225,000) (78,095) (886,933) (277,828)



226,022 226,022 4,828,661 12,066,899 16,895,560



(Continued)



See accompanying notes to financial statements.



27



Cochise County Community College District Statement of Cash Flows - Primary Government For the Year Ended June 30, 2005 (Concluded)

Business-Type Activities Reconciliation of operating loss to net cash used for operating activities: Operating loss Adjustments to reconcile operating loss to net cash used for operating activities: Depreciation Changes in assets and liabilities: Increase in: Other receivables Inventories Accounts payable Decrease in: Accounts receivable Government grants and contracts receivable Prepaid items Deferred revenues Accrued payroll and employee benefits Compensated absences payable Net cash used for operating activities



$



(17,102,706)



1,189,506



(66,783) (7,635) 76,745 3,892 68,482 11,349 (110,041) (183,980) (57,349) (16,178,520)



$



Noncash investing, noncapital financing, and capital and related financing transactions: During the year the District disposed of obsolete and retired capital assets in the amount of $40,945 having net book value of $0.



See accompanying notes to financial statements.

28



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Cochise County Community College District (District) conform to generally accepted accounting principles applicable to public institutions engaged only in business-type activities adopted by the Governmental Accounting Standards Board (GASB). During the year ended June 30, 2005, the District implemented the provisions of GASB Statement No. 40, Deposit and Investment Risk Disclosures. GASB Statement No. 40 establishes and modifies the risk disclosures about the District's deposits and investments. The implementation of GASB Statement No. 40 requires only additional disclosures, and had no effect on reported amounts for deposits, investments, net assets or changes in net assets. A. Reporting Entity The District is a special-purpose government that is governed by a separately elected governing body. It is legally separate and fiscally independent of other state and local governments. The accompanying financial statements present the activities of the District (the primary government) and its discretely presented component unit, the Cochise College Foundation, Inc. (Foundation). The Cochise College Foundation, Inc. is a legally separate, tax-exempt organization. It acts primarily as a fund-raising organization that receives gifts and bequests, administers those resources, and disburses payments to or on behalf of the District for scholarships. Although the District does not control the timing or amount of the receipts from the Foundation, the Foundation's restricted resources can only be used by, or for the benefit of, the District or its constituents. Consequently, the Foundation is considered a component unit of the District and is discretely presented in the District's financial statements. For financial reporting purposes only the Foundation's statements of financial position and activities are included in the District's financial statements as required by generally accepted accounting principles for public colleges and universities. For financial reporting purposes, the Foundation follows the Financial Accounting Standards Board statements for non-for-profit organizations. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. No modifications have been made to the Foundation's financial information included in the District's financial report. Accordingly, those financial statements have been reported on separate pages following the respective counterpart financial statements of the District. The Foundation has a June 30 year end. During the year ended June 30, 2005, the Foundation distributed $363,819 to and on behalf of the District for both restricted and unrestricted purposes. Complete financial statements for the Foundation can be obtained from Cochise College Foundation, 4190 West State Highway 80, Douglas, Arizona 85607.



29



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) B. Basis of Presentation and Accounting The financial statements include a statement of net assets; a statement of revenues, expenses, and changes in net assets; and a statement of cash flows. A statement of net assets provides information about the assets, liabilities, and net assets of the District at the end of the year. Assets and liabilities are classified as either current or noncurrent. Net assets are classified according to external donor restrictions or availability of assets to satisfy District obligations. Invested in capital assets, net of related debt represents the value of capital assets, net of accumulated depreciation, less any outstanding debt incurred to acquire or construct the assets. Nonexpendable restricted net assets are gifts that have been received for endowment purposes, the corpus of which cannot be expended. Expendable restricted net assets represent grants, contracts, gifts, and other resources that have been externally restricted for specific purposes. Unrestricted net assets include all other net assets, including those that have been designated by management to be used for other than general operating purposes. A statement of revenues, expenses, and changes in net assets provides information about the District's financial activities during the year. Revenues and expenses are classified as either operating or nonoperating, and all changes in net assets are reported, including capital contributions and additions to endowments. Operating revenues and expenses generally result from providing instructional, public, and auxiliary services, which is consistent with the District's mission. Accordingly, revenues such as tuition, educational grants, and book store, food service, and dormitory charges are considered to be operating revenues. Other revenues, such as property taxes and state appropriations, are not generated from operations and are considered to be nonoperating revenues. Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. Other expenses, such as interest expense on debt, are considered to be nonoperating expenses. A statement of cash flows provides information about the District's sources and uses of cash and cash equivalents during the year. Increases and decreases in cash and cash equivalents are classified as operating, non-capital financing, capital financing, or investing. The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Property taxes are recognized in the year for which they are levied. State appropriations are recognized as revenue in the year in which the appropriation is first made available for use. Grants and donations are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The District eliminates all internal activity.



30



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) It is the District's policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. The District follows FASB Statements and Interpretations issued on or before November 30, 1989; Accounting Principles Board Opinions; and Accounting Research Bulletins, unless those pronouncements conflict with GASB pronouncements. The District has chosen the option not to follow FASB Statements and Interpretations issued after November 30, 1989. C. Cash and Investments The District's cash and cash equivalents are considered to be cash on hand, demand deposits, cash and investments held by the County Treasurer, investments in the State Treasurer's Local Government Investment Pool, and highly liquid investments. Investments are stated at fair value. D. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market. E. Capital Assets Capital assets are reported at actual cost, or estimated historical cost if historical records are not available. Donated assets are reported at estimated fair value at the time received. Capitalization thresholds (the dollar values above which asset acquisitions are added to the capital asset accounts), depreciation methods, and estimated useful lives of capital assets reported in the financial statements are as follows: Capitalization Threshold $5,000 5,000 5,000 5,000 5,000 1 Depreciation Method N/A Straight line Straight line Straight line Straight line Straight line Estimated Useful Life N/A 15 years 40 years 5-30 years 60 years 10 years



Land Improvements other than buildings Buildings Equipment Museum art collection Library books F. Investment Income



Investment income is composed of interest, dividends, and net changes in the fair value of applicable investments.



31



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl'd) G. Compensated Absences Compensated absences consist of vacation leave and a calculated amount of sick leave earned by employees based on services already rendered. Employees may accumulate up to 176 hours of vacation depending on years of service, but any vacation hours in excess of the maximum amount that are unused at year-end are forfeited. Upon termination of employment, all unused and unforfeited vacation benefits are paid to employees. Accordingly, vacation benefits are accrued as a liability in the financial statements. Generally, sick leave benefits provide for ordinary sick pay and are cumulative but do not vest with employees. Therefore, a liability for sick leave benefits is not accrued in the financial statements. However, for employees who are at least 55 years of age or have met the necessary points for full retirement with the Arizona State Retirement System and have been employed by the District for at least 10 years, a portion of their sick leave benefits does vest. Those amounts are accrued as a liability in the financial statements. H. Scholarship Allowances A scholarship allowance is the difference between the stated charge for goods and services provided by the District and the amount that is paid by the student or third parties making payments on behalf of the student. Accordingly, some types of student financial aid such as Pell grants and scholarships awarded by the District are considered to be scholarship allowances. These allowances are netted against tuition and fees revenues in the statement of revenues, expenses, and changes in net assets.



NOTE 2 - DEPOSITS AND INVESTMENTS Arizona Revised Statutes (A.R.S.) requires the District to deposit special tax levies for the District's maintenance or capital outlay with the County Treasurer. The statutes do not require the District to deposit other public monies in its custody with the County Treasurer; however, the District must act as a prudent person dealing with the property of another when making investment decisions about those monies. The statutes do not include any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate risk or foreign currency risk for the District's investments.



32



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 2 - DEPOSITS AND INVESTMENTS (Cont'd) At June 30, 2005, the District's deposits and investments consisted of the following: Reported on the Statement of Net Assets as: Cash and Cash and Cash Investments Equivalents Held by Trustee Deposits: Cash on hand Cash in bank Investments at fair value: Cash and investments held by the County Treasurer Investment in State Treasurer's investment pool Money market mutual fund Total $ 18,016 2,346,270 333,924 14,197,350 $16,895,560 32,633 $32,633 $



Deposits: For deposits, custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to the district. The District currently does not have a deposit policy for custodial credit risk. At June 30, 2005, the carrying amount of the District's cash in bank was $2,346,270 and the bank balance was $3,025,334, of which $2,925,334 was collateralized with securities held by the pledging financial institution. Investments: At June 30, 2005, the District's investments consisted of the following: Money Market Mutual Fund County Treasurer's investment pool State Treasurer's investment pools Total Maturities Fair Value Less than one year $ 32,633 18.75 months average 333,924 152 days average 14,197,350 $14,563,907



The State Board of Investment provides oversight for the State Treasurer's pools, and the Local Government Investment Pool Advisory Committee provides consultation and advice to the Treasurer. The fair value of a participant's position in the pool approximates the value of that participant's pool shares. No comparable oversight is provided for the County Treasurer's investment pool, and that pool's structure does not provide for shares. Interest Rate Risk. The District currently does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.



33



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 2 - DEPOSITS AND INVESTMENTS (Concl'd) Credit Risk. The District has no investment policy that would further limit its investment choices. As of June 30, 2005, the District's investment in the State and County Treasurer's investment pools did not receive a credit quality rating from a national rating agency. Custodial Credit Risk. For an investment, custodial credit risk is the risk that, in the event of a counterparty's failure, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The District currently does not have an investment policy for custodial credit risk. The District's cash and investments held by the trustee have a custodial credit risk exposure of $32,633 because the related securities are uninsured, unregistered and held by the District's brokerage firm. NOTE 3 - CAPITAL ASSETS Capital asset activity for the year ended June 30, 2005, was as follows: Beginning Balance Capital assets not being depreciated Land Total capital assets not being depreciated Capital assets being depreciated: Buildings Equipment Improvements other than buildings Library books Museum art collection Total capital assets being depreciated Less accumulated depreciation for: Buildings Equipment Improvements other than buildings Library books Museum art collection Total accumulated depreciation Total capital assets being depreciated, net Capital assets, net $ 495,580 495,580 $ Ending Balance $ 495,580 495,580 18,972,128 5,826,491 4,157,039 1,259,197 66,000 30,280,855 (10,357,811) (4,914,895) (2,814,890) (973,733) (31,350) (19,092,679) 11,188,176 $11,683,756



Increases



Decreases $



18,577,743 5,567,498 4,033,817 1,232,981 66,000 29,478,039 (9,874,630) (4,468,241) (2,609,812) (961,185) (30,250) (17,944,118) 11,533,921 $12,029,501



394,385 258,993 123,222 67,161 843,761 (483,181) (446,654) (205,078) (53,493) (1,100) (1,189,506) (345,745) $ (345,745)



40,945 40,945



(40,945) (40,945) $



34



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 4 � LONG-TERM LIABILITIES The following schedule details the District's long-term liability and obligation activity for the year ended June 30, 2005: Beginning Balance Compensated absences payable Certificates of participation payable Total long-term liabilities $986,783 1,280,000 $2,266,783 Additions $686,303 $686,303 Reductions $743,652 225,000 $968,652 Ending Balance $929,434 1,055,000 $1,984,434 Due within one year $767,000 240,000 $1,007,000



Certificates of Participation - The District has issued certificates of participation that were generally non-callable until 2004 when they became callable at a premium, with interest payable semiannually to fund a portion of the $5,000,000 building expansion project on the Sierra Vista campus. Certificates outstanding at June 30, 2005, were as follows: Issue Series 1993 Original Amount $3,000,000 Maturity Ranges 7/1/2005-09 Interest Rates 5.80%-6.25% Outstanding Principal $1,055,000



The following schedule details debt service requirements to maturity for the District's certificates of participation payable at June 30, 2005: Principal Year Ending June 30 2006 2007 2008 2009 Total NOTE 5 - RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; error and omissions; injuries to employees; and natural disasters. The District carries commercial insurance for all such risks of loss, including workers' compensation and accident insurance. In addition, the District carries specialized commercial insurance for the risks of loss associated with its aircraft program and nursing and emergency medical technician student program. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 240,000 255,000 270,000 290,000 $1,055,000 Interest 57,620 42,642 26,495 9,063 $135,820



35



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 6 - RETIREMENT PLAN Plan description - The District contributes to a cost-sharing multiple-employer defined benefit pension plan administered by the Arizona State Retirement System. Benefits are established by State statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. The System is governed by the Arizona State Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2. The System issues a comprehensive annual financial report that includes financial statements and required supplementary information. The most recent report may be obtained by writing the Arizona State Retirement System, 3300 North Central Avenue, P.O. Box 33910, Phoenix, AZ 85067-3910 or by calling (602) 240-2000 or (800) 621-3778. Funding policy - The Arizona State Legislature establishes and may amend active plan members' and the District's contribution rates. For the year ended June 30, 2005, active plan members and the District were each required by statute to contribute at the actuarially determined rate of 5.70 percent (5.20 percent retirement and 0.50 percent long-term disability) of the members' annual covered payroll. The District's contributions to the System for the years ended June 30, 2005, 2004, and 2003, were $738,337, $620,691, and $279,956, respectively, which were equal to the required contributions for the year. NOTE 7 - OPERATING EXPENSES The District's operating expenses are presented by functional classification in the Statement of Revenues, Expenses, and Changes in Net Assets. The operating expenses can also be classified into the following: Personnel services Contract services Supplies and other services Rent and insurance Communications and utilities Travel Scholarships Depreciation Other Total $19,714,317 2,749,871 2,212,951 711,074 889,455 419,345 3,009,865 1,189,506 589,429 $31,485,813



36



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 8 � DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURE A. Summary of Significant Accounting Policies Cochise College Foundation, Inc. (the Foundation) is an Arizona not-for-profit organization established to support the educational goals of the Cochise County Community College District primarily through the funding of scholarships. Foundation policy is provided and directed by a fifteen member Board of Directors composed of appointed individuals. Basis of Presentation The financial statements of the Foundation have been prepared on the accrual basis of accounting. Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Foundation is required to report information regarding its financial position and activities according to the existence or absence of donor-imposed restrictions. Accordingly, the net assets of the Foundation and changes therein are classified and reported as follows. Unrestricted net assets � net assets that are not subject to donor-imposed restrictions. Temporarily restricted net assets � net assets subject to donor-imposed restrictions that may or will be met either by actions of the Foundation and/or the passage of time. Permanently restricted net assets � net assets subject to donor-imposed restrictions that must be maintained permanently by the Foundation. Temporarily restricted net assets are those whose use by the Foundation have been limited by donors to a specific time period or purpose. When a donor restriction expires, either when the stipulated time restriction ends or the purpose restriction is accomplished, temporarily restricted net assets are classified as unrestricted net assets and reported in the statement of activities as assets released from restrictions. Donor restricted contributions whose restrictions are met within the same year as received are reported as restricted contributions and subsequently released from restriction in the accompanying financial statements. Revenue Recognition Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restriction. Unconditional promises to give cash and other assets are reported at fair value at the date the promise is received. Unconditional promises and other gifts are reported as either temporarily or permanently restricted support if they are received with donor stipulations that limit the use of the donated assets. Conditional promises to give are not recognized until they become unconditional; that is, when the conditions on which they depend are substantially met.



37



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 8 � DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURE (Cont'd) Revenue and expenses are recorded on the accrual basis. Revenue received for future scholarships is deferred until the applicable year. Expense Allocation Directly identifiable expenses of the Foundation's programs are charged to scholarships and other programs. Supporting services expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the Foundation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Investments Investments in equity securities with readily determinable fair values and all investments in debt securities are measured at fair value in the statement of financial position. Investment income or loss (including gains and losses on investments, interest, and dividends) is included in the statement of activities as increases or decreases in unrestricted net assets unless the income or loss is restricted by donor or law. Concentrations of Credit and Market Risk Financial instruments that potentially expose the Foundation to concentrations of credit and market risk consist primarily of cash equivalents and investments. Cash equivalents are maintained at high-quality financial institutions and credit exposure is limited to any one institution. The Foundation has not experienced any losses on its cash equivalents. Donated Land Donated land is reflected as contributions in the accompanying financial statements at their estimated values at the date of receipt. Income Tax Status The Foundation is exempt from federal income tax as an organization other than a private foundation under Section 501(c)(3) of the Internal Revenue Code and from state income



38



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 8 � DISCRETELY PRESENTED COMPONENT UNIT DISCLOSURE (Concl'd) taxes under Arizona Revised Statutes. Accordingly, there are no income taxes reflected on the Statement of Financial Position or the Statement of Activities. B. CASH AND INVESTMENTS At June 30, 2005, the carrying amount of the Foundation's deposits was $392,880, and the bank balance was $145,251, which was entirely covered by Federal depository insurance or Securities Investor Protection Cooperation Coverage. The Foundation's investments at June 30, 2005, consist of the following. Equity securities Certificates of deposit Corporate bonds Mutual funds Total investments $ 19,372 381,517 932,469 651,122 $1,984,480



The following summarizes investment income included in the statement of activities. Temporarily Unrestricted Restricted Total $46,390 $34,402 $ 80,792 46,214 34,272 80,486 $92,604 $68,674 $161,278



Interest and dividends Net realized and unrealized gains (losses)



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT REVENUES by SOURCE Last Four Fiscal Years Unaudited



Source of Revenue Property taxes State appropriations Governmental grants and contracts Tuition and fees Investment income Bookstore sales Food services sales Dormitory rentals Other Total Revenues $ $



2004/05 10,910,652 $ 10,296,200



2003/04 10,144,554 $ 8,430,600



2002/03 9,642,802 8,228,801 $



2001/02 8,744,747 8,819,379



7,996,983 4,104,156 250,213 165,000 303,693 210,085 2,374,955 36,611,937 $



7,353,192 3,874,044 92,798 113,160 302,177 193,778 1,461,549 31,965,852 $



7,715,886 3,395,065 (204,595) 113,723 304,974 229,280 778,761 30,204,697 $



6,607,112 2,830,410 197,523 106,697 339,556 250,054 902,581 28,798,059



Source: Annual reports on audited financial statements for the past four fiscal years. Note: Beginning in fiscal year 2001/02, the District implemented the reporting requirements of GASB statement No. 35. Since prior years financial information has not been restated, only the past four fiscal years revenues are presented above.



41



COSHISE COUNTY COMMUNITY COLLEGE DISTRICT EXPENSES by FUNCTION Last Four Fiscal Years Unaudited



Function Instruction Public service Academic support Student services Institutional support Operation & maintenance of plant Scholarships Depreciation Interest on debt Auxiliary enterprises Total Expenditures $



2004/05 12,460,037 $ 561,156 1,051,477 2,887,048 5,005,656



2003/04 11,664,764 $ 456,122 903,969 2,726,816 4,317,051



2002/03 12,166,791 $ 340,121 861,049 2,849,238 4,555,534



2001/02 11,282,892 412,659 829,502 2,463,364 4,270,073



2,716,508 3,009,865 1,189,506 70,576 2,604,560 $31,556,389



2,588,501 3,027,789 1,112,495 84,098 1,601,063 $28,482,668



2,448,144 3,325,570 1,010,505 96,408 1,336,144 $28,989,504



2,529,219 2,774,394 1,063,415 107,570 1,693,613 $27,426,701



Source: Annual reports on audited financial statements for the past four fiscal years. Note: Beginning in fiscal year 2001/02, the District implemented the reporting requirements of GASB statement No. 35. Since prior years financial information has not been restated, only the past four fiscal years expenses are presented above.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT EXPENDITURE LIMITATION STATUTORY LIMIT TO BUDGETED EXPENDITURES Last Ten Fiscal Years Unaudited

BUDGETED STATUTORY FISCAL YEAR 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 EXPENDITURE LIMITATION(1) $ 19,212,089 19,803,102 20,202,737 19,000,727 20,295,431 19,189,074 21,370,511 22,544,097 23,778,152 30,719,685 $ EXPENDITURES SUBJECT TO LIMITATION(2) 15,155,870 15,439,755 17,022,022 16,075,334 19,459,919 19,094,305 17,160,964 16,833,821 16,483,870 19,043,923 UNUSED LEGAL LIMIT $ 4,056,219 4,363,347 3,180,715 2,925,393 835,512 94,769 4,209,547 5,710,276 7,294,282 11,675,762



Source: Audited Reports on Audit of Annual Budgeted Expenditure Limitation. Note 1: The Statutory Expenditure Limitation is calculated by the Arizona Department of Revenue Economic Estimates Commission and applies to Current (General, Auxiliary Enterprises, and Restricted) and Plant Funds (Unexpended and Retirement of Indebtedness). Note 2: Budgeted expenditures are net of allowable exclusions.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT PROPERTY TAX LEVIES and COLLECTIONS Last Ten Fiscal Years Unaudited

Percent of (2) (1) Fiscal Year 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 $ Total Tax Levy 7,157,316 7,365,886 7,599,198 7,754,875 7,947,218 8,551,935 8,755,738 9,608,286 10,192,074 10,918,770 Current Tax Collection $ 6,735,969 6,962,282 7,228,113 7,348,697 7,553,817 8,048,015 8,312,788 9,179,967 9,657,550 10,477,681 Current Tax Collections to Total Tax Levy 94.11% $ 94.52% 95.12% 94.76% 95.05% 94.11% 94.94% 95.54% 94.76% 95.96% (2) Delinquent Tax Collections 386,128 377,923 356,777 402,298 364,588 377,872 403,924 414,385 432,330 $ (2) Total Tax Collections 7,122,097 7,340,205 7,584,890 7,750,995 7,918,405 8,425,887 8,716,712 9,594,352 10,089,880 10,477,681 Percent of Total Tax Collections to Total Tax Levy 99.51% 99.65% 99.81% 99.95% 99.64% 98.53% 99.55% 99.85% 99.00% 95.96%



Source: Cochise County Assessors/Treasurer's Office and District records. Note 1: All amounts shown are for the General Fund only through fiscal year 2000-01. Thereafter, amounts are presented district-wide, in accordance with GASB Statement Number 35. Note 2: Amounts collected are recorded on a cash basis.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT ASSESSED VALUE and CURRENT MARKET VALUE of ALL TAXABLE PROPERTY Last Ten Fiscal Years Unaudited



Fiscal Year/ Levy Type 1995/96 primary 1995/96 secondary 1996/97 primary 1996/97 secondary 1997/98 primary 1997/98 secondary 1998/99 primary 1998/99 secondary 1999/00 primary 1999/00 secondary 2000/01 primary 2000/01 secondary 2001/02 primary 2001/02 secondary 2002/03 primary 2002/03 secondary 2003/04 primary 2003/04 secondary 2004/05 primary 2004/05 secondary Source: $



Net Assessed Value 409,738,705 $ 416,936,109 421,678,814 425,180,120 437,540,198 445,097,571 446,503,626 453,600,888 457,578,184 466,985,024 492,396,096 503,163,777 504,130,498 517,193,490 537,737,089 554,220,855 570,409,342 586,985,389 611,079,588 628,655,003



Full Cash Value (1) 2,787,647,908 2,851,941,925 2,913,200,215 2,944,128,560 3,082,541,434 3,138,898,087 3,193,188,932 3,244,824,066 3,335,394,089 3,398,094,759 3,564,695,900 3,666,404,012 3,709,879,002 3,824,151,522 3,976,034,494 4,109,659,631 4,316,623,673 4,457,391,244 4,677,083,356 4,824,239,743



Percentage of Net Assessed to Full Cash Value 14.70% 14.62% 14.47% 14.44% 14.19% 14.18% 13.98% 13.98% 13.72% 13.74% 13.81% 13.72% 13.59% 13.52% 13.52% 13.49% 13.21% 13.17% 13.07% 13.03%



Cochise County Assessor's Office.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT PROPERTY TAX RATES, DIRECT and OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (Per $100 of Assessed Value) Unaudited (1) State of Arizona Cities/Towns and Special Districts From To



Fiscal Year



Cochise College



Cochise County



School Districts From To



1995/96



Primary Secondary Primary Secondary Primary Secondary Primary Secondary Primary Secondary Primary Secondary Primary Secondary Primary Secondary Primary Secondary Primary Secondary



1.7468 1.7468 1.7368 1.7368 1.7368 1.7368 1.7368 1.7868 1.7868 1.7868 -



0.4700 -



2.9995 0.4148 2.9873 0.4148 2.9873 0.4148 2.9873 0.4148 2.9373 0.4148 2.9373 0.4148 2.9373 0.4148 2.9373 0.4148 2.9373 0.4148 2.9373 0.4148



0.3299 0.0999 0.3069 0.0999 0.0100 0.0947 0.0096 0.1000 0.0086 0.0100 0.0083 0.1000 0.0076 0.1000 0.1500 0.1000 0.1500 0.1000 0.1435 0.0896



2.1735 3.0000 2.6321 2.8757 2.5399 3.0000 7.0288 2.7968 2.4774 2.9976 2.4774 3.0000 2.4556 2.9986 2.3675 3.0000 2.3817 2.9999 2.3609 2.9686



1.5704 0.0000 0.0000 0.5005 0.0000 0.4458 0.0000 0.4305 0.0000 0.0000 1.1679 0.3416 1.2605 0.3111 1.5519 0.0000 0.0666 0.0000 1.0167 0.0000



11.5044 3.4377 12.0203 2.9480 12.0203 2.9552 12.0203 2.9934 11.3559 2.9562 11.4960 2.5575 11.9069 2.3008 16.5502 2.5127 9.9236 2.5555 10.5605 2.5485



1996/97



1997/98



1998/99



1999/00 2000/01



2001/02



2002/03



2003/04



2004/05



Source: Cochise County Assessors/Treasurer's Office. Note 1: State property tax eliminated in 1996.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT PRINCIPAL TAXPAYERS June 30, 2005 Unaudited



Taxpayer Arizona Electric Power Coop Inc Sulphur Springs Valley Electric Co-Op Inc El Paso Natural Gas Company Qwest Corporation Southwest Gas Corporation Arizona Public Service Company Valley Telephone Co-Op Union Pacific Railroad Southwest Transmission Price Development Co $



2005 Primary Assessed Valuation 32,801,912 18,935,064 14,358,516 13,253,227 8,666,971 6,747,988 5,967,112 5,349,879 5,349,854 3,868,682



Percent of Cochise County's 2004/05 Primary Assessed Valuation 4.81% 2.77% 2.10% 1.94% 1.27% 0.99% 0.87% 0.78% 0.78% 0.57%



Source:



Cochise County Assessor's Office



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT COMPUTATION of LEGAL DEBT MARGIN June 30, 2005 Unaudited



Secondary assessed value of real and personal property (1) Debt limit = 15% of secondary assessed value Amount of debt applicable to debt limit: General obligation bonded debt Legal debt margin, June 30, 2005 Source: Cochise County Assessor's Office and District records. Note: Tax year 2005.



$



628,655,003 94,298,250



$ 94,298,250



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT ASSESSED VALUATION, TAX RATE and LEVY HISTORY Last Ten Fiscal Years Unaudited



Fiscal Year 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05



Primary Assessed Valuation $ 409,738,705 421,678,814 437,540,198 446,503,626 457,578,184 492,396,096 504,130,498 537,737,089 570,409,342 611,079,588



Tax Rate 1.7468 1.7468 1.7368 1.7368 1.7368 1.7368 1.7368 1.7868 1.7868 1.7868 $



(1) Tax Levy 7,157,316 7,365,886 7,599,198 7,754,875 7,947,218 8,551,935 8,755,738 9,608,286 10,192,074 10,918,770



Secondary Assessed Valuation $ 416,936,109 425,180,120 445,097,571 453,600,888 466,985,024 503,163,777 517,193,490 554,220,855 586,985,389 628,655,003



Tax Rate $



(2) Tax Levy -



Source: Cochise County Assessor/Treasurer's Office and District records. Note 1: Tax levy for primary property tax, net of adjustments to current or prior years' levy. Note 2: Cochise College District does not currently have any secondary taxes levied.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT RATIO of ANNUAL DEBT SERVICE EXPENDITURES for CERTIFICATES OF PARTICIPATION to OPERATING EXPENSES/EXPENDITURES Last Ten Fiscal Years Unaudited



Fiscal Year 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 Source: Note:



Principal $ 145,000 150,000 155,000 165,000 175,000 185,000 190,000 205,000 215,000 225,000



Interest $ 158,205 151,745 144,460 136,455 122,973 112,890 107,570 96,408 84,098 70,578 $



Total Debt Service 303,205 301,745 299,460 301,455 297,973 297,890 297,570 301,408 299,098 295,578



Total Operating Expenses/ Expenditures (1) $ 22,256,622 22,664,020 24,321,126 26,320,650 27,867,255 27,939,256 27,426,701 28,989,504 28,482,668 31,556,389



Percentage of Debt Service to Operating Expenses/ Expenditures 1.36% 1.33% 1.23% 1.15% 1.07% 1.07% 1.08% 1.04% 1.05% 0.94%



Annual Audited Financial Statements and District records . Amounts shown for operating expenditures represent current funds operating expenditures prior to fiscal year 2001-02. Beginning with fiscal year 2001-02, operating expenses are presented using GASB Statement Number 35.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT CERTIFICATES OF PARTICIPATION COVERAGE Last Ten Fiscal Years Unaudited



Fiscal Year 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05



Pledged Revenues (1) 6,009,676 5,291,242 5,156,632 6,817,871 6,111,374 6,552,437 4,047,073 4,190,667 5,445,414 6,564,645 $



Debt Service Requirements (2) Principal Interest 145,000 150,000 155,000 165,000 175,000 185,000 190,000 205,000 215,000 225,000 158,205 151,745 144,460 132,248 122,973 112,890 107,570 96,408 84,098 70,578



Total 303,205 301,745 299,460 297,248 297,973 297,890 297,570 301,408 299,098 295,578



Percentage of Debt Service Requirements To Pledged Revenues 5.05% 5.70% 5.81% 4.36% 4.88% 4.55% 7.35% 7.19% 5.49% 4.50%



Source: Annual Audited Financial Statements and District records. Note 1: Pledged revenues include tuition and fees, bookstore revenues, food service sales, dormitory rentals, investment and other income. Beginning in fiscal year 2001-02, tuition and fees, food service sales, and domitory rentals are reported net of scholarships and allowances per GASB Statement Number 35. Certificates of Participation were first issued December 16, 1993, with the first interest payment due on July 1, 1994.



Note 2:



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT HISTORIC ENROLLMENT Last Ten Fiscal Years Unaudited



Fiscal Year 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05



Historic Headcount 8,592 8,669 9,297 9,950 10,033 9,865 9,206 10,367 12,876 13,608



Historic FTSE (1) 2,928 2,919 3,255 3,572 3,540 3,528 3,597 4,344 6,035 6,577



Annual Tuition Rates (2) 810 810 810 810 810 960 970 1,050 1,200 1,350



Source: Note 1: Note 2:



State Board of Directors for Community Colleges of Arizona and District records. Full Time Student Equivalent (30 Credit Hours). Tuition based on in-state rate for one year of full-time equivalent credit.



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COCHISE COUNTY COMMUNITY COLLEGE DISTRICT STUDENT ENROLLMENT/DEMOGRAPHIC STATISTICS Last Ten Fiscal Years Unaudited



Attendance Fall Semester Fiscal Year Full-Time Part-Time 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 30.3% 31.9% 32.9% 32.3% 28.1% 27.6% 28.6% 28.3% 28.8% 28.1% 69.7% 68.1% 67.1% 67.7% 71.9% 72.4% 71.4% 71.7% 71.2% 71.9%



Gender



Male 41.2% 40.5% 40.5% 42.5% 42.6% 42.2% 41.6% 40.8% 39.0% 40.3%



Female 58.8% 59.5% 59.5% 57.5% 57.4% 57.8% 58.4% 59.2% 61.0% 59.7%



Residency Resident Unorganized Out of County State Resident 93.2% 93.1% 93.4% 92.3% 93.5% 94.5% 92.7% 92.8% 92.6% 89.2% 1.2% 0.8% 0.7% 0.4% 0.6% 0.3% 0.2% 0.5% 0.6% 4.7% 3.5% 4.9% 5.0% 6.0% 5.0% 4.5% 6.5% 6.2% 6.0% 5.2%



Foreign 2.1% 1.2% 0.9% 1.3% 1.0% 0.6% 0.6% 0.6% 0.8% 0.9%



Age Fall Semester Fiscal Year 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 Source:



Ethnic Background American Asian Indian American Hispanic 1.2% 1.2% 1.1% 1.0% 1.2% 1.0% 0.8% 1.1% 1.0% 0.9% 4.1% 3.8% 3.4% 3.6% 3.7% 4.0% 3.8% 4.2% 3.9% 3.3% 24.6% 26.7% 27.9% 26.5% 27.8% 27.9% 27.9% 27.0% 26.3% 29.5% African American 6.9% 6.9% 7.0% 7.4% 6.6% 6.4% 6.5% 6.5% 6.8% 6.6% Other/ Unknown 2.5% 3.5% 4.0% 5.0% 4.6% 4.4% 5.2% 6.0% 6.3% 5.3%



Median 28 27 27 27 26 26 25 25 25 25



Mean 31 31 31 30 30 30 30 30 30 29



White 60.7% 57.9% 56.7% 56.6% 56.1% 56.4% 55.8% 55.2% 55.5% 54.4%



District records.



53



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT ECONOMIC INDICATORS for COCHISE COUNTY June 30, 2005 Unaudited Major Employers U.S. Army Intelligence Center and Fort Huachuca Cochise County Sierra Vista Unified School District Sierra Vista Regional Health Center Arizona Department of Corrections Douglas Unified School District No. 27 Cochise College Aegis Communications City of Sierra Vista Sierra Southwest Cooperative Services, Inc. Safeway, Inc. Southeastern Arizona Behavioral Health Services, Inc. Lawley Automotive Group FC Business Systems Willcox Unified School District Employment by Sector Mining & Construction Education and Health Services Financial Activities Government Leisure and Hospitality Manufacturing Natural Resources and Minning Professional and Business Services Other Services Information Trade, Transportation and Utilities Employment by Occupation Type of Business Military Government Education Healthcare Government Education Higher Education Professional and Business Services Government Utilities Retail Trade Healthcare Retail Trade Professional and Business Services Education Employees 12,204 1,039 997 677 653 499 476 438 375 302 287 275 257 250 234 Employees 2,550 3,800 900 11,550 4,000 875 950 3,550 1,100 525 6,300 Percent of Total 16.9% 10.0% 9.7% 7.6% 6.3% 6.1% 4.7% 4.4% 4.3% 4.2% 3.7% 4.5% 56,000



Office & Administrative Sales & Related Food Preparation & Serving Related Education, Training and Library Protective Service Construction & Extraction Management Building and Grounds, Cleaning and Maintenance Business and Financial Operations Healthcare Practitioners & Technical Computer and Mathmatical Unemployment Rate Labor Force Source: Arizona Department of Commerce and Arizona Department of Economic Security, Cochise College Center for Economic Research.



54



COCHISE COUNTY COMMUNITY COLLEGE DISTRICT MISCELLANEOUS STATISTICS June 30, 2005 Unaudited



Established Geographical Location



1961 South Eastern Arizona Bisbee Number Regular faculty Associate faculty Regular staff Part-time and Temporary Staff 105 267 250 445



County Seat Personnel Statistics Faculty



Staff



Population Cochise County State of Arizona Age Distribution 0-17 18-24 25-44 45-64 65+



1990 97,624 3,665,228



2000 117,755 5,130,632



2004 130,220 5,833,685 % of Total 25.6% 9.0% 24.6% 11.1% 15.5% % of Total



Cochise County Population Racial Composition RACE White African American Native American Asian or Pacific Islander Other TOTAL Hispanic Origin (of any race)



75.0% 5.1% 2.4% 3.1% 14.4% 100.0% 31.5%



Source: Arizona Department of Economic Security, Cochise College Center for Economic Research, Cochise College District records.



55