Coconino County Community College District Comprehensive Annual Financial Report 2001 |
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COCONINO COUNTY
COMMUNITY COLLEGE DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2001
Prepared by
DISTRICT BUSINESS AND ADMINISTRATIVE SERVICES OFFICE
i
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2001
T A B L E O F C O N T E N T S
INTRODUCTORY SECTION
Letter of Transmittal .........................................................................................................1
Government Finance Officers Association Certificate of Achievement........................ 13
Principal Officers ........................................................................................................... 14
Organizational Chart ..................................................................................................... 15
FINANCIAL SECTION
Independent Auditors' Report ....................................................................................... 17
Basic Financial Statements:
Balance Sheet............................................................................................................ 18
Statement of Changes in Fund Balances .................................................................. 20
Statement of Current Funds Revenues, Expenditures, and Other Changes............ 22
Notes to Financial Statements ................................................................................... 23
STATISTICAL SECTION
Current Funds Revenues by Source ............................................................................ 35
Current Funds Expenditures by Function ..................................................................... 36
Expenditure Limitation - Statutory Limit to Budgeted Expenditures............................. 37
Property Tax Levies and Collections ............................................................................ 38
Secondary Assessed Value and Current Market Value of All Taxable Property ......... 39
Primary Property Tax Rates, Direct and Overlapping Governments ........................... 40
Secondary Property Tax Rates, Direct and Overlapping Governments ...................... 41
Computation of Legal Debt Margin............................................................................... 42
Direct and Overlapping Debt ........................................................................................ 43
Top Ten Principal Taxpayers........................................................................................ 44
Historic Enrollment ........................................................................................................ 45
Student Enrollment Demographic Statistics ................................................................. 46
Economic Indicators for Coconino County ................................................................... 47
Miscellaneous Statistics................................................................................................ 48
INTRODUCTORY
SECTION
September 28, 2001
TO THE CITIZENS OF COCONINO COUNTY COMMUNITY COLLEGE DISTRICT:
We are pleased to provide to you the Comprehensive Annual Financial Report (CAFR) of the
Coconino County Community College District (the District), Flagstaff, Arizona for the fiscal
year ended June 30, 2001.
Responsibility for both the accuracy and completeness of the data, as well as the fairness of
the presentation, including all disclosures, rests with the District. To the best of our
knowledge and belief, the enclosed data are accurate in all material respects and are
reported in a manner designed to present fairly the financial position and results of
operations of the various funds of the District. All disclosures necessary to enable the reader
to gain an understanding of the District's financial activities have been included.
The CAFR is presented in three sections: Introductory, Financial, and Statistical. The
introductory section acquaints the reader with the report. The financial section includes the
basic financial statements, as well as the auditors' report on the financial statements for all
funds of the District. The statistical section presents selected unaudited financial and
demographic information presented on a multi-year basis.
The District is required to undergo an annual 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 single audit, including the Schedule of
Expenditures of Federal Awards and auditors' reports on internal controls and compliance
with applicable laws and regulations, will be available by contacting the Vice President for
Business and Administrative Services.
Coconino County Community College District is committed to offering quality educational
programs and services at a reasonable cost for the citizens of Coconino County. The District
provides a wide range of programs, including general academic, technical-vocational,
student development services, continuing education, and community service.
ORGANIZATION AND ADMINISTRATION
The District is governed by the State Board of Directors for Community Colleges of Arizona
and operated as a comprehensive community college under the laws of the State of Arizona.
It is governed by a five-member District Governing Board (the Board). Each Board member
is elected from one of the five precincts in Coconino County on a six-year staggered basis.
The Board has oversight responsibility and control over all District activities. The
administrative staff is responsible for the daily operation of the District.
2
ENTITY
The District is an independent reporting entity within the criteria established by generally
accepted accounting principles and the Governmental Accounting Standards Board. The
Board has governance responsibilities over all activities related to public community college
education within the jurisdiction of the District. These responsibilities include the receipt of
monies from local, state, and federal government sources and compliance with
accompanying requirements of these funding source entities. However, the Board is not
included in any other governmental "reporting entity" as defined in Section 2100,
Codification of Governmental Accounting and Financial Reporting Standards, since Board
members are elected by the public, have decision-making authority with the power to
designate management, maintain the responsibility to significantly influence operations, and
possess primary accountability for fiscal matters. All funds of the District are included in this
report.
HISTORY
The citizens of Coconino County in November of 1990 established the District under the
provisions of legislation enacted by the Arizona State Legislature in 1971. In May 1991, the
District's funding was approved through special election, and operations began on
July 1, 1991. The District boundaries are conterminous with the boundaries of Coconino
County.
ECONOMIC CONDITION AND OUTLOOK
Coconino County is located in the northern portion of the State and encompasses an area of
approximately 12 million acres or over 18,000 square miles. Its boundaries include the cities
of Page, Fredonia, Tuba City, Grand Canyon, Williams, Sedona, and Flagstaff, as well as
other smaller cities and towns, and all the unincorporated areas of the County. The County's
2000 population has been estimated at 116,320 by the U.S. Census Bureau. The Arizona
Department of Economic Security projects the County population to reach 150,000 within the
next ten years.
The share of the County's labor force is heavily weighted towards government, trade, and
service employment. These sectors employ over 85% of the entire county's nonagricultural
work force. Relative to the rest of the state, the work force employed by government is high.
Part of the reason for the large number of government workers in the county is the presence
of several major national parks, the large portion of the county covered by Indian
reservations and the high percentage of the total area in the county public lands; (94% of the
county is public land; including Indian reservations which cover 45% of the county).
The State and National economy have declined somewhat this past year, however, property
values in Coconino County have grown nearly 6% and county unemployment rates have
remained stable. Despite the County's strengthening economy, the District must contend
with the continued limited funding from the State. The District is committed to improving
and offering additional service to meet the county needs. These efforts are achieved
through careful monitoring of costs, innovative partnerships and continual searching for
cost savings opportunities.
3
GROWTH OF STUDENT POPULATION
The District began in 1991, initially expecting to serve 600 students. Nearly 1,000 students
registered the first semester. Since then, enrollment has increased dramatically. Today the
District enrolls nearly 10,000 students annually (duplicated headcount).
MAJOR INITIATIVES
The District's major initiatives for the coming fiscal year are:
• Completing numerous construction projects including: 1) The Lone Tree Campus and
District Offices, a 128,000 square foot facility in Flagstaff scheduled to be open for
classes in Spring of 2002; 2) The Page/Lake Powell Campus addition of approximately
5,000 square feet; 3) The Williams Campus of approximately 5,000 square feet; and 4)
A significant remodeling project for the Fourth Street Campus and Technology
Center.
• The District has initiated a concentrated effort to provide more workforce
development and technical training. The voters of Arizona recently passed a 0.6%
sales tax to assist in this effort, with all revenue being passed on to educational
institutions for the purposes of workforce development. Coconino Community
College anticipates receiving over $360,000 in FY02 from this sales tax, which the
District is restricting to fund workforce development initiatives.
• Technology and Distance Learning - In fiscal year 2000, the District was awarded
the Title III Grant for Distance Learning. This grant, along with District operating
funds and bond proceeds offer the funding needed to progress with distance
learning initiatives in an effort to provide educational opportunities to our
widespread District. Equipment will be provided at each of the campuses as well
as other sites within the County. These distance learning initiatives will provide
many more opportunities to the placed bound communities within the County.
• Accreditation/Assessment/Institutional Effectiveness - The North Central
Association of Colleges and Secondary Schools (NCA) awarded the District five-year
accreditation in 1996. The District is preparing for the re-accreditation
process, and NCA is scheduled to visit during April of 2002. The District has set
up a steering committee comprised of staff from various disciplines to ensure that
the District is prepared for the re-accreditation effort. The District has performed
student, employee and community surveys to assess the effectiveness, interest
and support of the overall mission. This assessment, as well as a District-wide
self-study process is currently being undertaken to ensure our institutional
effectiveness now and in the future.
4
Fiscal Year 2001 Accomplishments
Significant accomplishments for fiscal year 2001 include:
• Completed a restructuring effort for the organization.
• Revised the strategic plan and assessment projects in preparation for the NCA
visit.
• Completed approximately 60% of all the capital development bond initiatives
throughout the District.
• Purchased the 60,000 square foot facility in Flagstaff, Fourth Street Campus and
Technology Center. This facility was the original Flagstaff Campus and was
rented from the District’s inception until June 2001.
• The voters of Arizona approved an increase in sales tax to fund workforce
development, thereby increasing the District’s revenue base for fiscal year 2002.
• Fully retired a Certificates of Participation debt issue that was initiated in 1996 for
the construction of the Page Campus.
• Improved our community participation and resource base by increased
partnerships and collaboration with other entities .
• Updated and renewed several policies and procedures for the overall
improvement to the institution’s effectiveness.
• Continued to review and improve the salary and benefits plan for all District
personnel to assist with the retention and turnover rates of our most valuable
resource.
• Performed a complete review of the chart of accounts and revised numerous
funds, organizations, and accounts to reflect the new organization and improve
the comparability with other institutions.
FINANCIAL INFORMATION
The District's responsibilities for stewardship, safeguarding of assets, and accountability
to resource providers are fulfilled by effective management of these funds through
internal control, budgetary controls, cash management, and financial reporting.
Internal Control
The District’s administration is responsible for establishing and maintaining a system of
internal controls designed to ensure that the assets of the District are protected from
loss, theft or misuse and to ensure adequate accounting data are compiled to allow for
the preparation of financial statements in conformity with generally accepted accounting
principles. Internal controls are designed to provide reasonable assurance that these
objectives are met. The concept of reasonable assurance recognizes: (1) the cost of a
control should not exceed the benefits likely to be derived; and (2) the evaluation of costs
and benefits requires estimates and judgments by management.
5
All internal control evaluations occur within the above framework. We believe the District's
internal accounting controls adequately safeguard assets and provide reasonable assurance
of proper recording of financial transactions.
The District's annual audit was conducted by the Certified Public Accounting firm of Heinfeld
& Meech, P.C. The auditors consider the adequacy of internal controls and test the District's
compliance with applicable laws and regulations. The results of their audit procedures will
be described in the auditors' report on compliance and on internal control over financial
reporting to be issued later.
Single Audit
As a recipient of federal, state, and local assistance, the District also is responsible for
providing adequate internal controls to ensure compliance with applicable laws and
regulations related to those programs. This internal control system is subject to periodic
evaluation by management and the independent auditors of the District.
As part of the District's single audit, the auditors have tested the District's compliance with
requirements applicable to each of its major federal programs and considered its internal
control over compliance with requirements that could have a direct and material effect on a
major federal program. The results of their audit procedures will be described in the
auditors' report on compliance with requirements applicable to each major program and
internal control over compliance to be issued later. Copies of the single audit reports will be
available in the Office of the Vice President for Business and Administrative Services.
Budgetary Controls
The District maintains budgetary controls by line-item of the approved budget. Budget
transfers are restricted by function and object. The objective of these budgetary controls is
to ensure compliance with the annual budget adopted by the District's Governing Board.
The legal level of budgetary control is by summary line item of the current and plant funds.
The District complies with Arizona Revised Statutes §41-1279.07 requiring that an annual
report be filed with the State Board of Directors for Community Colleges of Arizona
comparing the adopted budgets with the actual revenues and expenditures.
Budgetary compliance is also demonstrated with the issuance of an annual budgeted
expenditure limitation report, which is also audited. The expenditure limitation calculation
determines the maximum allowable expenditure budget capacity for current and plant
funds.
An encumbrance accounting system is maintained by the District as one technique of
accomplishing budgetary control. Open encumbrances are not reported as reservations of
fund balance at year end, but are liquidated, (lapse at year end). Encumbrances are
re-established at the beginning of the next fiscal year as an obligation against the current
year's adopted budget.
6
Schedules of budget to actual data for General fund revenues and expenditures for the fiscal
year ended June 30, 2001, follow:
Variance
Favorable Percent
Budget Actual (Unfavorable) Change
Revenues:
Property taxes $ 3,886,056 $ 3 ,861,021 $ (25,035) (0.64) %
State appropriations 3 ,130,800 3 ,130,800 - - %
Governmental grants and contracts 2 0,749 21,209 460 2 .22 %
Tuition and fees 2 ,048,773 2 ,354,189 3 05,416 1 4.91 %
Investment income 3 78,240 5 24,791 146,551 3 8.75 %
Other 60,134 6 0,797 663 1.10 %
Carry Forward 8 3,762 (83,762) ( 100.00) %
Total revenues 9 ,608,514 9 ,952,807 3 44,293 3 .58 %
Expenditures by program
Instruction 3 ,714,821 3 ,645,235 6 9,586 1 .87 %
Academic support 1 ,255,217 1 ,196,342 5 8,875 4 .69 %
Student services 1 ,053,335 1 ,025,541 2 7,794 2 .64 %
Institutional support 1 ,980,995 1 ,981,788 (793) (0.04) %
Operation and maintenance of plant 1 ,063,835 9 83,243 8 0,592 7 .58 %
Contingency & Reserves 3 00,000 3 00,000 1 00.00 %
Scholarships and student support 2 7,500 19,554 7,946 2 8.89 %
Total expenditures 9 ,395,703 8 ,851,703 5 44,000 5 .79 %
Expenditures by object
Employee Salaries and Wages 5 ,754,201 5 ,549,605 2 04,596 3 .56 %
Employee Benefits 1 ,065,916 9 79,768 86,148 8 .08 %
Contracted Services 5 34,315 7 06,632 (172,317) ( 32.25) %
Supplies 5 08,256 4 05,790 1 02,466 2 0.16 %
Fixed Charges 5 87,020 5 72,085 14,935 2 .54 %
Utilities & Communications 2 22,190 1 93,688 2 8,502 1 2.83 %
Other Operating 1 68,529 2 23,457 (54,928) ( 32.59) %
Travel 1 94,076 1 62,638 31,438 1 6.20 %
Miscellaneous 3 3,700 3 8,486 (4,786) (14.20) %
Contingency 3 00,000 - 3 00,000 1 00.00 %
Scholarships 2 7,500 19,554 7,946 2 8.89 %
Total expenditures 9 ,395,703 8 ,851,703 5 44,000 5 .79 %
Transfers
Mandatory transfers - Restricted Cash Match (80,553) (83,650) 3,097 (3.84) %
Nonmandatory transfers - Auxliary Fund 2 0,973 4 5,478 (24,505) (116.84) %
Nonmandatory transfers - Plant Fund (153,231) ( 3,082,073) 2 ,928,842 (1,911.39) %
Total transfers (212,811) (3,120,245) 2 ,907,434 ( 1,366.20) %
Net increase (decrease) in fund balances $ - $ (2,019,141) $ (2,019,141)
General Fund: Budget to Actual
Fiscal Year Ended June 30, 2001
7
DISTRICT FUNCTIONS
The District exercises primary property tax levy authority for generation of funds for
operating purposes. State appropriations are also received based on full-time student
enrollment and formula funding.
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 facilitated through the Vice-President for Business and Administrative
Services.
Idle funds are invested by the District in a prudent, conservative, and secure manner for the
highest yield as prescribed by Arizona Revised Statutes. General Fund monies are on
deposit with the State Treasurer. Amounts which are idle during the year are invested by the
Treasurer on a pooled basis with the interest prorated back to the District.
During the year, idle funds were invested in demand deposits, notes, commercial paper, and
certificates of deposit through the State of Arizona Local Government Investment Pool. The
average yield on investments was 6.126 percent. The District's cash management objective
is to equal or exceed the average returns on the thirteen week U.S. Treasury Bill rates. The
average yield for 90-day U.S. Treasury Bills issued during the year was 5.297 percent.
Financial Reporting
The Comprehensive Annual Financial Report (CAFR) for the District was formulated with data
from several sources including: District records, Coconino County Department of Finance
reports, and Northern Arizona University College of Business economic outlook report.
These 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 is distributed to the District Governing Board and executive
management, the State legislature, 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 decision-making needs at all levels of the
organization to aid management in the allocation of resources.
Debt Administration
The District sold $25 million in general obligation bonds in January 1999. The voters of
Coconino County have approved a secondary tax to retire this debt. These bonds are tax
exempt and therefore subject to federal arbitrage requirements. The District has contracted
with Gust-Rosenfeld for bond counsel and Dain-Rauscher for financial advisement in the
administration of this debt to ensure compliance with all state and federal regulations. A
previous debt issue, certificates of participation (COPs) in the amount of $1,550,000, was
retired this fiscal year. The COPs were utilized to fund the construction of the Page Campus
in 1996; approximately $350,000 per year of current revenues were pledged and used to
retire the debt.
8
CURRENT FUNDS
The result of the financial activities for the current funds is a fund balance of $2,942,866. The
combined current funds (general, auxiliary and restricted) fund balances were 26% of the
total current fund expenditures, which approximates 95 days of expenditure coverage.
The following schedules present summaries of Current Funds revenues and expenditures for
the fiscal year ended June 30, 2001 and the amount and percentage of change in relation to
prior year revenues and expenditures:
CHANGE PERCENT
AMOUNT PERCENT FROM 2000 CHANGE
REVENUES (in Thousands) OF TOTAL (in Thousands) FROM 2000
Property Taxes $ 3 ,861 31.7% $ 75 2.0 %
State Appropriations 3,131 25.7% - - %
Governmental Grants and Contracts 2 ,039 16.8% 4 56 28.9 %
Private Gifts, Grants and Contracts 142 1.2% 112 373.3 %
Tuition and Fees 2 ,366 19.5% 3 53 17.5 %
Investment Income & Other 6 32 5.2% 47 8.0 %
Total Current Funds Revenues $ 1 2,171 100.0% $ 1 ,043 9.4 %
Current Fund Revenues
CHANGE PERCENT
AMOUNT PERCENT FROM 2000 CHANGE
EXPENDITURES (by function) (in Thousands) OF TOTAL (in Thousands) FROM 2000
Instruction $ 3,834 34.5% $ 508 15.3 %
Public Service 148 1.3% 6 4.2 %
Academic Support 1,633 14.7% 471 40.5 %
Student Services 1,255 11.3% 117 10.3 %
Institutional Support 1,977 17.8% 274 16.1 %
Operation & maintenance of plant 983 8.8% 34 3.6 %
Scholarships and student support 1,249 11.2% 198 18.8 %
Auxiliary Enterprises Expenditures 36 0.3% (187) (83.9) %
Provision for Bad Debts 8 0.1% (7) (46.7) %
Total Current Funds Expenditures $ 11,123 100.0% $ 1,414 14.6 %
Current Fund Expenditures
9
The unique needs of the District and the state-wide economic development are being
translated and prioritized in our strategic plan. This plan along with projections of future
revenues and expenditures, provide a base for future budget planning.
GENERAL FUND
The General Fund accounts for over 80% of the revenues and expenditures of the current
funds group. This fund accounts for the primary resources in support of the District’s
mission. These monies are unrestricted and provide the revenues to accomplish the
majority of the District’s maintenance and operations.
AUXILIARY ENTERPRISES FUND
The Auxiliary Enterprises Fund account for transactions of substantially self-supporting
auxiliary activities that perform a service primarily to students, faculty, and staff. Funds also
support educational activities. The District’s Auxiliary Enterprises consist primarily of a
bookstore and vending services.
RESTRICTED FUNDS
The Restricted Funds account for transactions of funds which are regulated by the
sponsoring agency. These funds include primarily grant and financial aid programs for the
District.
PLANT FUNDS
The Plant Funds consist of the Unexpended Plant Fund, Retirement of Indebtedness Plant
Fund, and the Investment in Plant Fund. These funds account for the District's capital
transactions relating to the investment in plant assets.
The following table summarizes the Unexpended Plant Fund revenues and expenditures for
the fiscal year ended June 30, 2001 and the amount, and percentage of change in relation to
prior year revenues and expenditures.
10
The following schedule summarizes the Retirement of Indebtedness Fund for the fiscal year
ended June 30, 2001 and the amount and percentage of change in relation to prior year
revenues and expenditures.
All property, buildings, and equipment of the District are accounted for in the Investment in
Plant Fund. As of June 30, 2001, the District had fixed assets of $25,955,836. Depreciation of
these assets is not recognized. The following schedule summarizes the Investment in Plant
Fund for the fiscal year ended June 30, 2001 and the amount and percentage of change in
relation to prior year revenues and expenditures.
CHANGE PERCENT
AMOUNT PERCENT FROM 2000 CHANGE
REVENUES AND TRANSFERS (in Thousands) OF TOTAL (in Thousands) FROM 2000
State Appropriations $ 313 1.7% $ (72) (18.7) %
Investment Income 885 4.8% (293) (24.9) %
Other 3 0.0% (3) (50.0) %
Transfers In 17,314 93.5% 11,839 216.2 %
Total Revenues & Transfers $ 18,515 100.0% $ 11,471 162.9 %
EXPENDITURES (by object) & TRANSFERS
Expended for Plant Facilities $ 17,268 99.0% $ 13,728 387.8 %
Transfers Out 179 1.0% (247) (58.0) %
Total Expenditures & Transfers $ 17,447 100.0% $ 13,481 339.9 %
Net Increase $ 1,068
Unexpended Plant Fund
CHANGE PERCENT
AMOUNT PERCENT FROM 2000 CHANGE
REVENUES AND TRANSFERS (in Thousands) OF TOTAL (in Thousands) FROM 2000
Property Taxes $ 1,847 91.2% $ 85 4.8 %
Transfer In 179 8.8% (247) (58.0) %
Total Revenues & Transfers $ 2,026 100.0% $ (162) (7.4) %
EXPENDITURES (by object) & TRANSFERS
Retirement of Indebtedness $ 715 36.6% $ 380 113.4 %
Interest on Indebtedness 1,222 62.5% (631) (34.1) %
Provision for Bad Debts 17 0.9% 17 100.0 %
Total Expenditures & Transfers $ 1,954 100.0% $ (234) (10.7) %
Net Increase $ 72
Retirement of Indebtedness Fund
11
RISK MANAGEMENT
A full complement of insurance coverage is maintained for the District in accordance with (and
usually in excess of) requirements established by the State Board of Directors for Community
Colleges of Arizona. Liability coverage is broad in form, including errors and omissions and
"wrongful acts" coverage, and is maintained with policy limits totalling $10,000,000. Casualty
coverages are maintained on a replacement value basis with a schedule of values agreed
upon between the carrier and the District. Miscellaneous coverages include crime and fidelity
coverages. Workers' Compensation coverage is maintained through the State Fund.
INDEPENDENT AUDIT
The District utilized the audit services of the Certified Public Accounting firm of Heinfeld &
Meech, PC, to comply with Arizona Revised Statutes, which require an annual audit of the
District's financial statements. This requirement has been complied with and the Independent
Auditors' Report is included in this document. The auditors' expressed an unqualified
opinion.
GFOA CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to Coconino
Community College for its Comprehensive Annual Financial Report (CAFR) for the fiscal year
ended June 30, 2000. This was the sixth consecutive year that Coconino Community College
has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government unit must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
CHANGE PERCENT
AMOUNT PERCENT FROM 2000 CHANGE
REVENUES AND TRANSFERS (in Thousands) OF TOTAL (in Thousands) FROM 2000
Expended for Plant Facilities $ 17,488 96.1% $ 13,834 378.6 %
Retirement of Indebtedness 715 3.9% 380 113.4 %
Total Revenues & Transfers $ 18,203 100.0% $ 14,214 356.3 %
EXPENDITURES (by object) & TRANSFERS
Disposal of Plant Facilities $ 117 0.8% $ (146) (55.5) %
Transfers-Out 14,235 99.2% 11,118 356.7 %
Total Expenditures & Transfers $ 14,352 100.0% $ 10,972 324.6 %
Net Increase $ 3,851
Investment in Plant Fund
12
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program’s requirements and we are submitting it to the GFOA to determine its
eligibility for another certificate.
ACKNOWLEDGEMENT
We thank the members of the District Governing Board for their interest and support in
planning and conducting the financial operations of the District in a highly responsible and
progressive manner. The preparation of this report could not have been accomplished
without the hard work and dedicated services of the Business and Administrative Services
staff. Appreciation is also expressed to Heinfeld & Meech, P.C. for timely completion of the
audit.
Respectfully submitted,
Thomas S. Jordan Jami V. Bradley, Vice President
President Business and Administrative Services
13
14
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
PRINCIPAL OFFICERS
DISTRICT GOVERNING BOARD
Nat White, Chair, District 1
Daniel W. Baertlein, Secretary, District 3
Val Gleave, Member, District 5
Carole Mandino, Member, District 2
Paul Neuman, Member, District 4
ADMINISTRATION
Thomas S. Jordan, President
Jami V. Bradley, Vice-President for Business and Administrative Services
Kathleen Corak-Sund, Vice-President for Academic Affairs
Terree Duncan, Dean for Student Services
Lloyd Hammonds, Dean for Page Campus
Michael Lainoff, Dean for Extended Learning
15
ORGANIZATIONAL CHART
Dean for the
Page Campus
Public
Relations
Accounting &
Budget
Facilities
Management
Human
Resources
Information
Technology
Services
Purchasing &
Auxiliary Services
Vice President
Business & Administrative Services
Arts & Sciences
Division
Career & Technical
Education Division
Institutional Research
and Assessment
Vice President
Academic Affairs
Admissions &
Records
Financial
Aid
Learning
Enhancement
Dean for
Student Services
Continuing
Education
Grand Canyon
Extension
Small Business
Development Center
Williams
Extension
Dean for
Extended Learning
President's
Office
District Governing
Board
Coconino County
Citizens
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FINANCIAL
SECTION
17
INDEPENDENT AUDITORS REPORT
The Auditor General of the State of Arizona
The Governing Board of
Coconino County Community College District
We have audited the accompanying balance sheet of Coconino County Community College District as of
June 30, 2001, and the related statements of changes in fund balances and current funds revenues,
expenditures, and other changes for the year then ended. These financial statements are the responsibility
of the District's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Coconino County Community College District as of June 30, 2001, and the changes
in its fund balances and its current funds revenues, expenditures, and other changes for the year then
ended in conformity with U.S. generally accepted accounting principles.
As discussed in Note 13 to the financial statements, the District changed its capitalization threshold for
property, buildings and equipment.
The information included in the introductory and statistical sections listed in the table of contents has not
been subjected to the auditing procedures applied in our audit of the financial statements and,
accordingly, we express no opinion on such information.
In accordance with Government Auditing Standards, we have also issued our report dated September 28,
2001, on our consideration of the District's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral
part of an audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
HEINFELD & MEECH, P.C.
Certified Public Accountants
September 28, 2001
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
Balance Sheet
June 30, 2001
(with comparative totals for 2000)
Current Funds
Unrestricted Total Current Funds
Auxiliary (Memorandum Only)
General Enterprises Restricted 2001 2000
Assets
Cash in bank and on hand $ - $ - $ - $ - $ 1,520,569
Cash and investments held by the County Treasurer 1 25,443 1 25,443 123,232
Investments 7 ,158,813 7 ,158,813 7,152,777
Receivables:
Property taxes (net of allowances of $54,747 and 8 4,061 8 4,061 129,223
$41,480 as of June 30, 2001 and June 30, 2000,
respectively)
Government grants 1 97,881 1 97,881 130,925
Interest 7 5,191 7 5,191 103,798
Other (net of allowances of $59,537 and $52,287 9 2,705 2 ,764 9 5,469 243,738
as of June 30, 2001 and June 30, 2000, respectively)
Due from other funds 2 ,615 2 ,615 380,493
Prepaid items 5 1,816 1 ,943 5 3,759 166,429
Property, buildings, and equipment:
Land
Buildings
Improvements Other than Buildings
Equipment
Vehicles
Library collections
Construction in progress (estimated cost to
complete at June 30, 2001 $3,446,811; estimated
cost to complete at June 30, 2000 $15,470,010)
Total assets $ 7,588,029 $ 5 ,379 $ 1 99,824 $ 7,793,232 $ 9,951,184
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 1 23,688 $ 3 49 $ 42,721 $ 1 66,758 $ 163,159
Accrued liabilities 7 22,798 3 ,524 7 26,322 741,431
Deposits held in custody for others
Due to other funds 3 ,546,111 1 17,704 3 ,663,815 3,326,702
Bonds payable
Obligation under certificates of participation
Arbitrage payable
Interest payable
Deferred revenues 2 54,072 3 9,399 2 93,471 742,006
Total liabilities 4 ,646,669 3 ,873 1 99,824 4 ,850,366 4,973,298
Fund balances:
Unrestricted:
General 2 ,941,360 1 ,506 2 ,942,866 4,977,886
Net investment in plant
Total fund balances 2 ,941,360 1 ,506 - 2 ,942,866 4,977,886
Total liabilities and fund balances $ 7,588,029 $ 5 ,379 $ 1 99,824 $ 7,793,232 $ 9,951,184
See accompanying notes to financial statements.
18
Plant Funds
Retirement Total All Funds
of Investment Agency (Memorandum Only)
Unexpended Indebtedness in Plant Fund 2001 2000 (restated)
$ - $ - $ - $ - $ - $ 1,520,569
1 25,443 1 23,232
9 ,644,460 1 6,803,273 30,592,350
3 8,876 122,937 1 29,223
1 97,881 1 30,925
9 6,843 1 72,034 4 21,586
9 5,469 2 49,370
3 ,586,965 3 2,958 46,134 3,668,672 3,331,559
5 3,759 1 66,429
1 ,089,000 1 ,089,000 1,089,000
5 ,292,078 5 ,292,078 2,376,705
1 8,461 18,461 1 8,461
1 ,382,283 1 ,382,283 1,151,140
2 1,790 21,790 2 1,790
2 7,729 27,729 2 7,729
18,124,495 1 8,124,495 3,899,835
$ 13,328,268 $ 7 1,834 $ 25,955,836 $ 46,134 $ 4 7,195,304 $ 45,249,903
$ 6 96,853 $ - $ - $ 256 $ 863,867 $ 1,262,758
726,322 7 41,431
45,878 45,878 2 1,877
4 ,857 3,668,672 3,331,559
6 ,998,010 17,461,990 2 4,460,000 25,000,000
- 1 75,000
5 64,406 564,406 3 55,529
- 2 ,231
293,471 7 42,006
8 ,259,269 - 17,466,847 46,134 3 0,622,616 31,632,391
5 ,068,999 7 1,834 8,083,699 8,979,323
8 ,488,989 8 ,488,989 4,638,189
5 ,068,999 7 1,834 8 ,488,989 1 6,572,688 13,617,512
$ 13,328,268 $ 7 1,834 $ 25,955,836 $ 46,134 $ 4 7,195,304 $ 45,249,903
19
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
Statement of Changes in Fund Balances
Year Ended June 30, 2001
(with comparative totals for 2000)
Current Funds
Unrestricted Total Current Funds
Auxiliary (Memorandum Only)
General Enterprises Restricted 2001 2000
Revenues and other additions:
Unrestricted current revenues $ 9 ,952,807 $ 6 5,860 $ - $ 10,018,667 $ 9 ,542,507
Property Taxes
State appropriations
Governmental grants and contracts 2,013,971 2,013,971 1,560,922
Private gifts, grants, and contracts 134,081 134,081 20,087
Investment income
Sale of surplus property
Capital cost recovery
Expended for plant facilities
(Including $220,190 and $114,244 of
expenditures charged to current funds
in 2001 and 2000, respectively)
Retirement of indebtedness
Total revenues and other additions 9,952,807 65,860 2,148,052 12,166,719 11,123,516
Expenditures and other deductions:
Educational and general expenditures 8,844,119 2,216,418 11,060,537 9,453,737
Auxiliary enterprises expenditures 36,261 36,261 222,544
Indirect costs recovered 18,918 18,918 17,690
Provision for bad debts 7,584 7,584 14,735
Expended for plant facilities
Retirement of indebtedness
Interest on indebtedness
Disposal of plant facilities
Total expenditures and other
deductions 8,851,703 36,261 2,235,336 11,123,300 9,708,706
Transfers among funds
additions (deductions):
Mandatory transfers for:
Principal and interest
College matching portion of
government grants (83,650) 83,650 - -
Total mandatory transfers (83,650) 83,650 - -
Nonmandatory transfers (net) (3,036,595) ( 45,478) 3,634 (3,078,439) ( 2,358,510)
Total transfers (3,120,245) ( 45,478) 87,284 (3,078,439) ( 2,358,510)
Net increase (decrease) for the year (2,019,141) ( 15,879) - (2,035,020) ( 943,700)
Fund balances, beginning of year, as restated 4,960,501 17,385 - 4,977,886 5,921,586
Fund balances, end of year $ 2,941,360 $ 1,506 $ - $ 2,942,866 $ 4,977,886
See accompanying notes to financial statements.
20
Plant Funds
Retirement Total All Funds
of Investment (Memorandum Only)
Unexpended Indebtedness in Plant 2001 2000 (restated)
$ - $ - $ - $ 10,018,667 $ 9 ,542,507
1 ,846,522 1,846,522 1,761,604
3 13,300 3 13,300 384,900
2 ,013,971 1,560,922
1 34,081 2 0,087
8 85,006 885,006 1,178,536
1 ,221 1 ,221
1 ,497 1 ,497 5,632
17,488,004 17,488,004 3 ,654,167
715,000 715,000 335,000
1 ,201,024 1 ,846,522 18,203,004 33,417,269 18,443,355
1 1,060,537 9 ,453,737
3 6,261 222,544
1 8,918 17,690
1 7,313 24,897 14,735
1 7,267,814 17,267,814 3 ,539,923
7 15,000 715,000 335,000
1 ,221,838 1,221,838 1,853,040
116,828 116,828 263,516
1 7,267,814 1 ,954,151 116,828 30,462,093 15,700,185
(179,463) 1 79,463 - -
- -
(179,463) 1 79,463 - - -
1 7,313,815 ( 14,235,376) - -
1 7,134,352 1 79,463 ( 14,235,376) - -
1 ,067,562 7 1,834 3,850,800 2 ,955,176 2 ,743,170
4 ,001,437 - 4,638,189 13,617,512 10,874,342
$ 5 ,068,999 $ 7 1,834 $ 8,488,989 $ 16,572,688 $ 13,617,512
21
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
Statement of Current Funds Revenues, Expenditures, and Other Changes
Year Ended June 30, 2001
(with comparative totals for 2000)
Unrestricted Total Current Funds
Auxiliary (Memorandum Only)
General Enterprises Total Restricted 2001 2000
Revenues:
Property taxes $ 3 ,861,021 $ - $ 3,861,021 $ - $ 3,861,021 $ 3,785,749
State appropriations 3 ,130,800 3,130,800 3,130,800 3,130,800
Governmental grants and contracts 2 1,209 21,209 2,017,605 2,038,814 1,593,680
Private gifts, grants, and contracts 7,487 7,487 134,081 141,568 29,567
Tuition and fees 2 ,354,189 12,181 2,366,370 2,366,370 2,013,005
Investment income 5 24,791 524,791 524,791 476,039
Other 6 0,797 46,192 106,989 106,989 109,744
Total revenues 9 ,952,807 65,860 10,018,667 2,151,686 12,170,353 11,138,584
Expenditures and mandatory transfers:
Educational and general expenditures:
Instruction 3 ,645,235 3,645,235 189,276 3,834,511 3,325,782
Public service 148,276 148,276 142,287
Academic support 1 ,196,342 1,196,342 436,446 1,632,788 1,162,479
Student services 1 ,025,541 1,025,541 229,381 1,254,922 1,138,132
Institutional support (administration) 1 ,974,204 1,974,204 2,556 1,976,760 1,703,198
Operation and maintenance of plant 9 83,243 983,243 983,243 948,800
Scholarships and student support 1 9,554 19,554 1,229,401 1,248,955 1,050,749
Total educational and
general expenditures 8 ,844,119 8,844,119 2,235,336 11,079,455 9,471,427
Auxiliary enterprises expenditures 36,261 36,261 36,261 222,544
Provision for bad debts 7 ,584 7,584 7,584 14,735
Total expenditures 8 ,851,703 36,261 8,887,964 2,235,336 11,123,300 9,708,706
Mandatory transfers for:
College matching portion of
government grants (83,650) - (83,650) 83,650 - -
Total mandatory transfers (83,650) - (83,650) 83,650 - -
Total expenditures and
mandatory transfers 8 ,935,353 36,261 8,971,614 2,151,686 11,123,300 9,708,706
Other transfers and additions (deductions):
Excess of transfers to revenues
over restricted receipts ( 3,634) ( 3,634) (15,068)
Nonmandatory transfers (net) (3,036,595) ( 45,478) (3,082,073) 3,634 ( 3,078,439) (2,358,510)
Net increase (decrease) in fund balances $ (2,019,141) $ ( 15,879) $ (2,035,020) $ - $ ( 2,035,020) $ (943,700)
See accompanying notes to financial statements.
22
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
23
NOTE 1 - Summary of Significant Accounting Policies
The accounting policies of the Coconino County Community College District conform
to generally accepted accounting principles as applied to governmental colleges and
universities in the AICPA College Guide model as defined in Governmental
Accounting Standards Board Statement No. 15. A summary of the District's more
significant accounting policies follows.
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. Furthermore, there are no component units
combined with the District for financial statement presentation purposes, and it is not
included in any other governmental reporting entity.
The financial activities of Coconino County Community College Foundation,
summarized in Note 6, are not included in the District's financial statements. The
Foundation is a nonprofit corporation controlled by a separate board of directors.
The Foundation s goals are to promote educational programs and District objectives.
Fund Accounting - The District's accounts are maintained in accordance with the
principles of fund accounting to ensure that limitations and restrictions on the
District's available resources are observed. The principles of fund accounting require
that resources be classified for accounting and reporting purposes into funds in
accordance with the activities or objectives specified for those resources. Accounts
are separately maintained for each fund; however, in the accompanying financial
statements, funds that have similar characteristics have been combined into fund
groups. Accordingly, financial transactions are reported by fund groups as if each
fund group was a single fund. A description of the funds follows.
Descriptions of Funds - The Current Funds account for resources that will be
expended in the near term for operating purposes in performing the District's primary
and support missions, which are instruction, public service, academic support,
student services, institutional support, operation and maintenance of plant,
scholarships, and auxiliary enterprises. The individual Current Funds are described
more fully as follows:
• The General Fund accounts for all current financial resources not required to
be accounted for in the other Current Funds.
• The Auxiliary Enterprises Fund accounts for transactions of substantially self-
supporting auxiliary activities that perform services primarily to students,
faculty, and staff, such as the bookstore and contract instruction.
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
24
NOTE 1 Summary of Significant Accounting Policies (continued)
• The Restricted Fund accounts for resources that are expended only for
operating purposes specified by donors or other outside agencies. The
Restricted Fund s revenues are reported in the statement of current funds
revenues, expenditures, and other changes only to the extent of expenditures
and net mandatory transfers. Amounts received in excess of expenditures and
net mandatory transfers are reported as additions to the fund balance during
the year, and may be subject to repayment if not expended.
The other funds of the District and their purposes are described as follows:
• The Plant Funds account for transactions relating to the District's investment
in plant assets such as property, buildings, and equipment. The individual
Plant Funds are described more fully as follows:
The Unexpended Plant Fund accounts for resources available to finance the
District s acquisition, construction, or improvement of plant assets.
Expenditures for construction in progress are accumulated in this fund until
the project is completed or until the end of the fiscal year and then transferred
to the Investment in Plant Fund. Resources restricted for renewals and
replacements of existing District plant assets are also recorded in the
Unexpended Plant Fund.
The Retirement of Indebtedness Plant Fund accounts for the accumulation of
resources for payment of principal, interest, and other debt service charges,
including contributions for sinking funds relating to debt incurred in financing
District plant assets.
The Investment in Plant Fund accounts for the costs of the District's plant
assets and the associated liabilities. Assets recorded in the Investment in
Plant Fund may be acquired from resources in the Unexpended Plant,
Auxiliary Enterprises, and Restricted Funds.
• The Agency Fund accounts for resources held by the District as custodian or
fiscal agent for students, faculty, staff, and other organizations; therefore, the
transactions within this fund do not affect the statement of changes in fund
balances.
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
25
NOTE 1 Summary of Significant Accounting Policies (continued)
Basis of Accounting - The financial statements are presented on the accrual basis of
accounting. The statement of current funds revenues, expenditures, and other changes
is a statement of financial activities of current funds related to the current reporting
period. It does not claim to present the results of operations, or the net income or loss
for the period as would a statement of income, or a statement of revenues and
expenses.
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,
and highly liquid investments. All other investments are stated at fair value.
Property, Buildings, and Equipment - Property, buildings, and equipment are
capitalized at cost if purchased, or estimated fair market value at the time received in
the case of gifts. Major outlays for assets or improvements to them are capitalized as
projects are constructed. Interest incurred during the construction phase of the project
is capitalized net of interest earned on the invested proceeds over the same period.
To the extent that current fund monies are used to finance such assets, the amounts so
provided are accounted for as expenditures in the case of normal acquisition or
replacement of movable equipment and library books; mandatory transfers (transfers
among funds resulting from legally binding agreements) in the case of required
provisions for debt amortization and interest, and equipment renewal and replacement;
or nonmandatory transfers (transfers among funds made at the discretion of the
Governing Board) in other cases.
Depreciation on buildings and equipment is not recorded.
Compensated Absences - Compensated absences consist of vacation leave,
compensatory time earned, and a calculated amount of sick leave earned by employees
based on services already rendered. Employees may accumulate vacation and
compensatory hours up to 1.5 times their annual vacation accrual, but such hours in
excess of the maximum amount that are unused at year-end are forfeited. Generally,
sick leave benefits provide for ordinary sick pay and are cumulative but do not vest with
employees and therefore, are not accrued. However, for employees who are 60 or over
and who have 10 years of service, a portion (up to a maximum of $5,000) of their sick
leave benefits do vest and, therefore, are accrued.
Investment Income - Investment income is composed of interest, dividends, and net
changes in the fair value of applicable investments. Income earned from investments
purchased with pooled monies is allocated to each of the District s funds based on
average monthly ending balance.
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
26
NOTE 1 Summary of Significant Accounting Policies (concluded)
Summer Sessions - Summer sessions revenues and expenditures are reported in the
General Fund within the fiscal year in which the total summer sessions program is
predominantly conducted.
Tuition and Fees - Tuition and fees revenues (net of refunds) include $17,680 of
waivers for faculty and staff benefits charged to the appropriate expenditure category to
which the benefited personnel relate.
Financial Aid - When the District does not select the recipients for student financial aid,
such awards are accounted for within the Agency Fund (except for Pell grants that are
included in the Current Restricted Fund) and, consequently, are not included in the
statement of changes in fund balances. During the year ended June 30, 2001, the
District disbursed $325,420 in such student awards, primarily for private scholarships.
Budget - An annual budget is prepared and legally adopted for the General Fund,
Auxiliary Enterprise Fund, Restricted Fund, and Plant Funds. These budgets are
prepared on a GAAP basis. Budget transfers within the General Fund are subject to
limitations imposed by function and object. After adoption, the budget may only be
modified downward by the Board. Expenditures may not exceed the adopted budget for
each fund. Unexpended balances, including state appropriations received, carry over
into next year as a financing source for the new year.
Encumbrances - Encumbrance accounting, under which purchase orders, contracts,
and other commitments to expend monies are recorded to reserve that portion of the
applicable fund balance, is employed as an extension of formal budgetary control of the
General Fund. Encumbrances outstanding at year-end for goods or services that were
not received before fiscal year-end are cancelled.
Total Columns (Memorandum Only) - The information in the Total Current Funds and
Total All Funds columns is for comparison purposes only and does not purport to
present financial position or the results of operations in conformity with generally
accepted accounting principles (GAAP). Interfund eliminations have not been made
and, therefore, the data is not comparable to a consolidation.
NOTE 2 - Deposits and Investments
Arizona Revised Statutes (A.R.S.) require 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.
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
27
NOTE 2 Deposits and Investments (concluded)
Investments - At June 30, 2001, the District s investments consisted of the
following.
The District s investment in the State or County Treasurer s investment pools represents
a proportionate interest in those pools portfolios; however, the District s portion is not
identified with specific investments and is not subject to custodial credit risk.
The State Board of Deposit 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.
NOTE 3 - Property Taxes Receivable
The Coconino County Treasurer is responsible for collecting property taxes for all
governmental entities within the County. The County levies the property taxes due to
the District in August. Two equal installments, payable in October and March,
become delinquent after the first business day in November and May. A lien
assessed against real and personal property attaches on the first day of January
preceding the assessment and levy.
Fair
Value
Cash and investments held by
the County Treasurer $ 125,443
Investment in State Treasurer's
investment pool 16,803,273
Total $ 16,928,716
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
28
NOTE 3 Property Taxes Receivable (concluded)
Property taxes receivable consist of uncollected property taxes as determined from
the records of the County Treasurer's Office, and at June 30, 2001, the uncollected
property taxes and related allowances for uncollectibles were as follows:
NOTE 4 - Other Receivables
Other receivables are shown net of the related allowances for uncollectibles. A
summary of the allowances for uncollectibles for other receivables at June 30, 2001,
follows:
NOTE 5 Interfund Receivables/Payables
Cash and investments (other than investments relating to the bond issue which are
recorded in the Plant Fund) are recorded in the General Fund. The District s
Interfund receivables and payables at June 30, 2001, were as follows:
General Fund $ 59,537
Total $ 59,537
General Retirement of
Fund Indebtedness
Property Taxes Receivable $ 121,495 $ 56,189
Less allowance for uncollectibles 37,434 17,313
Net total $ 84,061 $ 38,876
Due From Due To
Other Funds Other Funds
General Fund $ $ 3,546,111
Auxiliary Enterprises Fund 2,615
Restricted Fund 117,704
Unexpended Plant Fund 3,586,965
Retirement of Indebtedness Fund 32,958
Investment in Plant Fund 4,857
Agency Fund 46,134
Total Interfund $ 3,668,672 $ 3,668,672
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
29
NOTE 6 Financially Interrelated Organizations
In May 1996, the Coconino County Community College Foundation purchased from
a third party the Flagstaff campus used by the District and became the lessor of the
property to the District. The prior lease terms and obligations of the District did not
change as a result of the transfer of ownership. On June 28, 2001, the District
purchased the Flagstaff campus from the Foundation.
Unaudited assets, fund balance, and revenues of the Foundation for the most recent
fiscal year were $534,925, $528,373, and $869,795, respectively.
The leasing of the Flagstaff campus to the District accounted for 45% of the
Foundation s total revenues for their fiscal year ended June 30, 2001.
NOTE 7 Obligations Under Operating Leases
During the year ended June 30, 2001, the District leased the Flagstaff campus
District offices and classroom space under the provisions of a long-term lease
agreement classified as an operating lease for accounting purposes. Rental
expenditures under the terms of the operating lease were $396,815 for the year
ended June 30, 2001.
On June 28, 2001, the District purchased the Flagstaff campus from the Coconino
County Community College Foundation. Under the agreement of the purchase, the
District assumed the lease payments for the land on which the Flagstaff campus
resides. The lease agreement is classified as an operating lease for accounting
purposes. The operating lease has a remaining noncancelable lease term of 23
years, allowing four renewal options for eleven years each, and rental payments are
adjusted annually based on changes in the Consumer Price Index (CPI). The future
minimum rental payments required under the operating lease at June 30, 2001, were
calculated using an estimated CPI of 3% annually and are as follows.
Year ending June 30:
2002 $ 28,833
2003 29,698
2004 30,589
2005 31,507
2006 32,452
Thereafter 727,389
Total minimum lease payments at June 30, 2001 $ 880,468
Future Minimum Operating Lease Payments
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
30
NOTE 8 - Bonds Payable
General Obligation Bonds Payable. General obligation bonds payable at June 30,
2001, consisted of the outstanding general obligation bonds presented below. The
bonds are generally callable with interest payable semiannually.
The $25,000,000 in bonds were authorized by voters in November 1997, and were
subsequently sold on January 7, 1999, at a net interest rate of 4.72%.
Principal and interest requirements at June 30, 2001, were as follows:
Outstanding
Description Interest Rates Maturities Principal
General Obligation Bonds Semi-annual
Series A (1999) 4.3% - 5.75% 7/1/2019 $24,460,000
General obligation bond debt service requirements to maturity, including
$12,970,662 of interest, are as follows:
NOTE 9 - Certificates of Participation
During fiscal year 1995-96, the District issued Certificates of Participation Series
1995 to finance the construction of the Page Campus. During the fiscal year ended
June 30, 2001, the Certificates of Participation were retired:
Outstanding Outstanding
Principal Principal
Interest Rates Maturities June 30, 2000 Retirements June 30, 2001
Certificates of Participation
Series 1995 4.6% - 5.1% 1998-2001 $ 175,000 $ 175,000 $ -
General Obligation Bond Debt Service Requirements to Maturity
Year ending June 30,
2002 $ 1,813,343
2003 1,872,405
2004 1,931,005
2005 1,948,855
2006 1,967,968
Thereafter 27,897,086
$ 37,430,662
Total general obligation bond debt service
requirements at June 30, 2001
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
31
NOTE 10 - Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage to,
and destruction of assets; errors and omissions; injuries to employees; and natural
disasters. The District carries commercial insurance for all such risks of loss,
including workers compensation and employees health and accident insurance.
Settled claims resulting from these risks have not exceeded commercial insurance
coverage in any of the past three fiscal years.
NOTE 11 - 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 System, 3300 North Central Avenue, PO 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 rate. For the year ended June 30,
2001, active plan members and the District were each required by statute to
contribute at the actuarially determined rate of 2.66 percent (2.17 percent retirement
and 0.49 percent long-term disability) of the members annual covered payroll. The
District s contributions to the System for the years ended June 30, 2001, 2000, and
1999 were $124,490, $126,071, and $121,990, respectively, which were equal to the
required contributions for the year.
NOTE 12 Property, Buildings, and Equipment
On March 23, 2001, the State Board of Directors for Community Colleges of Arizona
increased the capitalization rates for Community Colleges from $1,000 to $5,000, to
be implemented on or before July 1, 2001. The District elected immediate
implementation and has restated beginning balances for property, buildings, and
equipment. This resulted in a total write-down of $1,871,773.
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
32
NOTE 12 Property, Buildings, and Equipment (concluded)
The following is a summary of changes in property, buildings, and equipment during
the fiscal year:
Estimated costs to complete construction in progress at June 30, 2001, is
$3,446,811. Expended for plant facilities additions in the Investment in Plant Fund
include $220,190 of expenditures charged to current funds in fiscal year 2001.
NOTE 13 Beginning Fund Balance Restated
The July 1, 2000, fund balance of the Investment in Plant Fund does not agree to
the balance reported in the financial statements at June 30, 2000, due to a write-
down of assets due to increased capitalization rates as discussed in Note 12. In the
June 30, 2000, financial statements, equipment and vehicles included $1,869,973
and $1,800 of assets valued at less than $5,000, respectively.
Changes in Property, Buildings, and Equipment
Balance
July 1, 2000 Balance
(restated) Additions Deductions June 30, 2001
Land $ 1,089,000 $ 1,089,000
Buildings 2,376,705 2,915,373 5,292,078
Improvements other than 18,461 18,461
buildings
Equipment 1,151,140 347,971 116,828 1,382,283
Vehicles 21,790 21,790
Library collections 27,729 27,729
Construction in progress 3,899,835 14,224,660 18,124,495
Total property, buildings,
and equipment $ 8,584,660 $ 17,488,004 $ 116,828 $ 25,955,836
Fund Balance, June 30, 2000,
as previously reported $ 6,509,962
Less: Asset write-down 1,871,773
Fund Balance, July 1, 2001,
as restated $ 4,638,189
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
(COCONINO COLLEGE)
Notes to Financial Statements
June 30, 2001
33
NOTE 14 - Implementation of GASB Statement No. 35
Beginning with fiscal year 2002, the District will prepare its external financial reports
following the requirements of GASB Statement No. 35, Basic Financial Statements
and Management s Discussion and Analysis for Public Colleges and Universities.
Implementing this standard will significantly change the accounting principles and
reporting format used by the District in future financial reports.
34
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STATISTICAL
SECTION
35
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
CURRENT FUNDS REVENUES BY SOURCE
LAST TEN FISCAL YEARS
2000-01 1999-00 1998-99
Source of revenue Amount % Amount % Amount %
Property taxes $ 3 ,861,021 31.7% $ 3 ,785,749 34.0% $ 3 ,499,824 34.1%
State appropriations 3 ,130,800 25.7% 3 ,130,800 28.1% 3 ,130,800 30.5%
Governmental grants and contracts 2 ,035,180 16.7% 1 ,578,612 14.2% 1 ,442,749 14.1%
Private gifts, grants, and contracts 1 41,568 1.2% 2 9,567 0.3% 2 1,850 0.2%
Tuition and fees 2 ,366,370 19.5% 2 ,013,005 18.1% 1 ,737,319 16.9%
Investment income 5 24,791 4.3% 4 76,039 4.3% 3 43,049 3.3%
Other 1 06,989 0.9% 1 09,744 1.0% 8 9,440 0.9%
Total revenues $ 1 2,166,719 100.0% $ 1 1,123,516 100.0% $ 1 0,265,031 100.0%
1997-98 1996-97 1995-96
Source of revenue Amount % Amount % Amount %
Property taxes $ 3 ,334,611 34.6% $ 3 ,020,591 33.9% $ 2 ,902,234 36.0%
State appropriations 2 ,803,900 29.1% 2 ,411,500 27.0% 1 ,955,500 24.2%
Governmental grants and contracts 1 ,445,559 15.0% 1 ,415,282 15.9% 1 ,387,581 17.2%
Private gifts, grants, and contracts 1 45,039 1.5% 1 14,211 1.3% 6 8,459 0.9%
Tuition and fees 1 ,595,778 16.6% 1 ,699,863 19.1% 1 ,520,775 18.8%
Investment income 3 00,287 3.1% 2 39,034 2.7% 2 29,584 2.8%
Other 1 3,845 0.1% 8,182 0.1% 6,037 0.1%
Total revenues $ 9 ,639,019 100.0% $ 8 ,908,663 100.0% $ 8 ,070,170 100.0%
1994-95 1993-94 1992-93
Source of revenue Amount % Amount % Amount %
Property taxes $ 2 ,758,731 40.7% $ 2 ,646,545 49.7% $ 2 ,454,104 54.1%
State appropriations 1 ,584,600 23.4% 1 ,047,200 19.7% 1 ,000,900 22.1%
Governmental grants and contracts 8 26,980 12.2% 2 72,745 5.1% 1 50,899 3.3%
Private gifts, grants, and contracts 3 6,685 0.5% 3,000 0.1% 3,986 0.1%
Tuition and fees 1 ,319,679 19.5% 1 ,184,454 22.2% 8 49,011 18.7%
Investment income 2 11,804 3.1% 1 28,927 2.4% 7 3,075 1.6%
Other 3 9,439 0.6% 44,466 0.8% 6,567 0.1%
Total revenues $ 6 ,777,918 100.0% $ 5 ,327,337 100.0% $ 4 ,538,542 100.0%
1991-92
Source of revenue Amount %
Property taxes $ 2 ,337,281 60.6%
State appropriations 9 79,400 25.4%
Governmental grants and contracts 9 8,843 2.6%
Private gifts, grants, and contracts 1 0,490 0.3%
Tuition and fees 4 03,810 10.5%
Investment income 1 9,849 0.5%
Other 4,532 0.1%
Total revenues $ 3 ,854,205 100.0%
Source: Annual Reports on Financial Statements for years presented.
Note 1: Current Fund includes the General Fund, the Auxiliary Enterprises Fund, and the Restricted Fund.
36
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
CURRENT FUNDS EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
2000-01 1999-00 1998-99
Function Amount % Amount % Amount %
Instruction $ 3 ,834,511 34.5% $ 3 ,325,782 34.3% $ 2 ,894,818 33.0%
Public service 1 48,276 1.3% 1 42,287 1.5% 1 43,511 1.6%
Academic support 1 ,632,788 14.7% 1 ,162,479 12.0% 6 55,820 7.5%
Student services 1 ,254,922 11.3% 1 ,138,132 11.7% 1 ,282,664 14.6%
Institutional support (administration) 1 ,976,760 17.8% 1 ,703,198 17.5% 1 ,633,765 18.6%
Operation and maintenance of plant 9 83,243 8.8% 9 48,800 9.8% 9 54,393 10.9%
Scholarships and student support 1 ,248,955 11.2% 1 ,050,749 10.8% 9 75,194 11.1%
Auxiliary enterprises expenditures 36,261 0.3% 2 22,544 2.2% 2 04,415 2.3%
Provision for bad debts 7,584 0.1% 14,735 0.2% 3 0,267 0.4%
Total expenditures $ 1 1,123,300 100.0% $ 9 ,708,706 100.0% $ 8 ,774,847 100.0%
1997-98 1996-97 1995-96
Function Amount % Amount % Amount %
Instruction $ 2 ,744,702 32.5% $ 2 ,818,136 34.9% $ 2 ,646,417 34.4%
Public service 1 44,122 1.7% 1 39,911 1.7% 1 43,870 1.9%
Academic support 5 86,163 6.9% 6 17,147 7.6% 4 81,244 6.3%
Student services 1 ,295,423 15.3% 1 ,207,415 15.0% 1 ,096,022 14.3%
Institutional support (administration) 1 ,746,053 20.6% 1 ,486,561 18.4% 1 ,342,427 17.5%
Operation and maintenance of plant 7 96,966 9.4% 7 25,586 9.0% 7 80,320 10.1%
Scholarships and student support 9 91,689 11.7% 9 80,592 12.2% 9 84,396 12.8%
Auxiliary enterprises expenditures 1 07,116 1.3% 4 7,823 0.6% 1 69,095 2.2%
Provision for bad debts 5 0,117 0.6% 4 9,894 0.6% 4 0,189 0.5%
Total expenditures $ 8 ,462,351 100.0% $ 8 ,073,065 100.0% $ 7 ,683,980 100.0%
1994-95 1993-94 1992-93
Function Amount % Amount % Amount %
Instruction $ 2 ,083,208 35.2% $ 1 ,583,358 38.7% $ 1 ,250,852 37.9%
Public service 1 30,039 2.2% 2 03,536 5.0% 1 69,431 5.1%
Academic support 5 89,483 9.9% 5 67,613 13.8% 5 17,078 15.7%
Student services 5 59,376 9.4% 3 72,518 9.1% 2 53,705 7.7%
Institutional support (administration) 1 ,083,107 18.3% 7 32,416 17.9% 5 86,608 17.8%
Operation and maintenance of plant 7 12,954 12.0% 5 62,776 13.7% 5 06,376 15.4%
Scholarships and student support 7 15,278 12.1% 5 0,166 1.2% 1 0,306 0.3%
Auxiliary enterprises expenditures 43,481 0.7% 2 0,014 0.5% 0.0%
Provision for bad debts 1 0,438 0.2% 3,294 0.1% 3,633 0.1%
Total expenditures $ 5 ,927,364 100.0% $ 4 ,095,691 100.0% $ 3 ,297,989 100.0%
1991-92
Function Amount %
Instruction $ 9 13,679 42.1%
Public service 9 8,316 4.5%
Academic support 1 66,320 7.7%
Student services 2 02,512 9.3%
Institutional support (administration) 5 95,665 27.4%
Operation and maintenance of plant 1 83,100 8.4%
Scholarships and student support 1 0,176 0.5%
Auxiliary enterprises expenditures 0.0%
Provision for bad debts 1,827 0.1%
Total expenditures $ 2 ,171,595 100.0%
Source: Annual Reports on Financial Statements for years presented.
Note 1: Current Fund includes the General Fund, the Auxiliary Enterprises Fund, and the Restricted Fund.
37
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
EXPENDITURE LIMITATION
STATUTORY LIMIT TO BUDGETED EXPENDITURES
LAST TEN FISCAL YEARS
BUDGETED
STATUTORY EXPENDITURES UNUSED
FISCAL EXPENDITURE SUBJECT TO LEGAL
YEAR LIMITATION 1 THE LIMITATION 2 LIMIT 3
1991-92 $ 3 ,895,615 $ 3 ,656,700 $ 2 38,915
1992-93 5 ,488,569 2,423,376 3 ,065,193
1993-94 5 ,918,104 2,732,135 3 ,185,969
1994-95 7,599,551 5,401,497 2,198,054
1995-96 8,358,792 6,890,003 1,468,789
1996-97 8,098,460 8,098,459 1
1997-98 8,606,136 8,606,135 1
1998-99 8,817,955 8,817,954 1
1999-00 8,584,609 8,584,608 1
2000-01 8,294,190 8,294,189 1
Source: District records.
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.
Note 3: The unused legal limit may be carried forward to the extent it does not exceed fund balances.
38
RATIO OF RATIO OF
TOTAL TAX DELINQUENT
COLLECTIONS OUTSTANDING TAXES TO
FISCAL TOTAL TOTAL TAX TO TOTAL DELINQUENT TOTAL
YEAR TAX LEVY (1) COLLECTIONS TAX LEVY TAXES TAX LEVY
1991-92 $ 2,187,738 $ 2 ,062,784 94.29% $ 124,954 5.71%
1992-93 2,413,001 2 ,456,490 101.80% 122,568 5.08%
1993-94 2,644,101 2 ,657,405 100.50% 111,708 4.22%
1994-95 2,742,094 2 ,756,133 100.51% 114,306 4.17%
1995-96 2,907,547 2 ,877,602 98.97% 138,938 4.78%
1996-97 3,169,405 3 ,101,761 97.87% 138,757 4.38%
1997-98 3,237,396 3 ,162,511 97.69% 167,321 5.17%
1998-99 3,390,966 3 ,366,588 99.28% 160,600 4.74%
1999-00 5,392,349 5 ,343,807 99.10% 143,270 2.66%
2000-01 5,601,262 5 ,546,120 99.02% 177,683 3.17%
Source: Coconino County Department of Finance, Coconino County Treasurer's Office, and District records.
(1) Tax Levy is based on levy limits of the calendar year at June 30.
(2) Cash basis; excludes payments in lieu of taxes.
COCONINO COMMUNITY COLLEGE
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
39
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
SECONDARY ASSESSED VALUE AND CURRENT MARKET VALUE
OF ALL TAXABLE PROPERTY
LAST TEN TAX YEARS
(Dollars in Thousands)
TOTAL ASSESSED
TOTAL PROPERTY VALUES VALUE AS A
TAX CURRENT PERCENT OF TOTAL
YEAR ASSESSED MARKET MARKET VALUE
1992 6 88,104 4 ,244,198 16.2%
1993 7 04,577 4 ,523,115 15.6%
1994 7 35,069 4 ,862,390 15.1%
1995 7 63,229 5 ,162,803 14.8%
1996 7 80,215 5 ,814,529 13.4%
1997 8 45,386 6 ,215,438 13.6%
1998 8 87,556 6,462,245 13.7%
1999 9 39,915 6 ,700,526 14.0%
2000 1 ,004,869 7 ,158,212 14.0%
2001 1 ,062,082 7 ,535,970 14.1%
Source: Coconino County Assessor's Office
Note: Figures are not broken out between secured and unsecured.
40
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
PRIMARY PROPERTY TAX RATES, DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN TAX YEARS
(Per $100 Assessed Valuation)
Coconino
County State County
Tax Community of Coconino Education
Year College District Arizona County* District
1992 0 .3589 0 .4700 0 .9785 2 .3600
1993 0 .3671 0 .4700 0 .9624 2 .3600
1994 0 .3706 0 .4700 0 .9432 2 .3600
1995 0 .3728 0 .4700 0 .9308 2 .3600
1996 0 .3784 - 0 .9137 2 .2000
1997 0 .3869 - 0 .8899 2 .2000
1998 0 .3949 - 0 .8733 2 .2000
1999 0 .4001 - 0 .8650 2 .1654
2000 0 .3973 - 0 .8556 2 .1265
2001 0 .4010 - 0 .8407 2 .0647
Cities or Fire Districts School Districts
Tax Range Range
Year From To From To
1992 0 .6644 1 .3880 1 .8491 8.3947
1993 0 .6644 1 .3880 2 .2336 7.6900
1994 0 .6644 1 .3880 2 .2370 7.6483
1995 0 .7326 1 .3880 1 .6118 7.6483
1996 0 .7326 1 .3880 1 .9114 6.8876
1997 0 .7326 1 .3880 2 .2947 6.6914
1998 0 .7326 1 .3526 2 .4607 7.8187
1999 0 .7326 1 .3138 1 .9307 7.3800
2000 0 .7326 1 .2573 1 .9949 6.4113
2001 0 .7326 1 .2573 1 .0763 7.8089
2001 Tax Rates (Special Districts)
Flood Control ** 0 .0913
Forest Lakes Domestic Water 1.1730
Williams Facilities District 0.2138
Williams Hospital District 0.9211
Page Hospital District 0.7629
* Coconino County applies to the General, Library District and Fire District Assistance Funds.
** Flood Control District applies to all property outside the cities of Flagstaff, Page and Fredonia.
Source: Arizona Tax Research Foundation
41
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
SECONDARY PROPERTY TAX RATES, DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN TAX YEARS
(Per $100 Assessed Valuation)
Coconino Coconino
County Association for County
Tax Community Vocation, Industry, Coconino Education
Year College District and Technology County* District
1992 - - 0 .2030 0 .2030
1993 - - 0 .2026 -
1994 - - 0 .2190 -
1995 - - 0 .2164 -
1996 - - 0 .2248 -
1997 - - 0 .2269 -
1998 - - 0 .2361 -
1999 0 .1946 - 0 .2711 -
2000 0 .1751 - 0 .2780 -
2001 0 .1707 0 .0500 0 .2544 -
Cities or Fire Districts School Districts
Tax Range Range
Year From To From To
1992 - 2 .5000 - 9.1611
1993 - 2 .6000 - 9.9260
1994 - 2 .6000 - 5.5190
1995 - 2 .6000 - 6.9003
1996 - 2 .6000 - 5.2463
1997 - 2 .6000 - 6.6700
1998 - 2 .6000 - 7.2869
1999 - 2 .6000 - 7.8837
2000 - 2 .6000 - 7.5159
2001 - 2 .5000 - 6 .6782
* Coconino County applies to the General, Library District and Fire District Assistance Funds.
Source: Arizona Tax Research Foundation
42
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
COMPUTATION OF LEGAL DEBT MARGIN
For Fiscal Year Ended June 30, 2001
Secondary Assessed Value of Real and Personal Property $ 1,062,082,181
Debt Limit = 15% of secondary assessed value 1 59,312,327
Amount of debt applicable to debt limit:
General Obligation Bonded Debt $ 24,460,000
Total debt applicable to debt limit 2 4,460,000
Legal debt margin $ 134,852,327
Source: District Records
43
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
DIRECT AND OVERLAPPING DEBT
General Obligation Bonds, June 30, 2001
Overlapping Municipality
Direct:
Coconino County Community College District $ 2 4,460,000
Overlapping:
City of Flagstaff $ 1 0,300,000
City of Williams 2 1,000
Flagstaff Unified School District #1 6 2,355,000
Fredonia-Moccasin Unified School District #6 2 50,000
Grand Canyon Unified School District #4 7 55,000
Page Unified School District #8 1 6,460,000
Sedona-Oak Creek Unified School District #9 2 7,458,547
Tuba City Unified School District #15 1 ,325,000
Williams Unified School District #2 2 ,900,000
TOTAL $ 146,284,547
Source: Dain Rauscher Incorporated
44
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
TOP TEN PRINCIPAL TAXPAYERS
June 30, 2001
PERCENTAGE OF
ESTIMATED DISTRICT'S 2000
TYPE OF 2000 SECONDARY SECONDARY
TAXPAYER BUSINESS ASSESSED VALUE ASSESSED VALUE
Arizona Public Service Utility $ 6 2,945,082 6.26%
City of Los Angeles
Dept. of Water & Power Utility 35,815,645 3.56%
Salt River Project Utility 3 3,186,626 3.30%
Transwestern Pipeline Utility 1 8,999,401 1.89%
Nevada Power Company Utility 1 8,615,216 1.85%
Atchison Topeka, Burlington No. &
Santa Fe Railway Company Railway 17,171,885 1.71%
El Paso Natural Gas Utility 1 6,001,281 1.59%
Tucson Electric Power Utility 1 5,514,476 1.54%
U.S. West Communications Utility 1 2,313,540 1.23%
W.L. Gore & Associates Manufacturer 1 1,182,806 1.11%
Total Top Ten Taxpayers $ 2 41,745,958 24.06%
Sources: Coconino County Assessor's Office
Coconino County Treasurer's Office
Note: All figures are based on secondary assessed valuation.
45
COLLEGE/CENTER 2000 1999 1998 1997 1996
Flagstaff 2,621 2,736 2,518 2,603 2,699
Page 309 286 226 203 252
Grand Canyon 16 40 15 32 26
Williams 42 38 28 14 21
Other 1 37 - 21 29
NAU 369 436 486 561 868
Total 3,358 3,573 3,273 3,434 3,895
COLLEGE/CENTER 1995 1994 1993 1992 1991
Flagstaff 2,417 2,200 1,728 1,369 736
Page 248 256 249 253 156
Grand Canyon 31 26 39 34 28
Williams 43 40 50 47 35
Other - 34 39 30 17
NAU 1,030 1,209 1,453 1,503 -
Total 3,769 3,765 3,558 3,236 972
SEMESTER 2000-01 1999-00 1998-99 1997-98 1996-97
Fall/Spring Average 1 ,403.9 1,371.8 1,280.8 1,313.5 1,427.6
Summer 162.8 160.8 165.5 155.4 150.7
Short 85.6 71.3 45.3 27.8 9.2
Annual Total 1 ,652.3 1,603.9 1,491.6 1,496.7 1,587.5
SEMESTER 1995-96 1994-95 1993-94 1992-93 1991-92
Fall/Spring Average 1 ,369.3 1,240.4 1,047.3 894.8 437.2
Summer 146.0 146.0 138.6 115.6 38.2
Short 2.9 1.1 0.3 12.2 15.9
Annual Total 1 ,518.2 1,387.5 1,186.2 1,022.6 491.3
HISTORIC FTSE*
FALL HISTORIC HEADCOUNT
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
HISTORIC ENROLLMENT
LAST TEN FISCAL YEARS
Source: District records
Note 1: Headcount is unduplicated for the 45th day of Fall semesters only.
* Full Time Student Equivalent (15 Credit Hours)
46
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
STUDENT ENROLLMENT DEMOGRAPHIC STATISTICS
LAST TEN FALL SEMESTERS
RESIDENCY
FISCAL COUNTY OUT OF OUT OF
YEAR RESIDENT COUNTY STATE FOREIGN
1991-92 91% 7% 2% 0%
1992-93 87% 10% 3% 0%
1993-94 84% 13% 3% 0%
1994-95 88% 9% 3% 0%
1995-96 87% 9% 4% 0%
1996-97 88% 9% 3% 0%
1997-98 82% 11% 7% 0%
1998-99 85% 8% 7% 0%
1999-00 86% 4% 10% 0%
2000-01 94% 5% 1% 0%
ATTENDANCE GENDER
FISCAL
YEAR FT PT M F
1991-92 8% 92% 41% 59%
1992-93 13% 87% 40% 60%
1993-94 16% 84% 40% 60%
1994-95 12% 88% 39% 61%
1995-96 13% 87% 40% 60%
1996-97 13% 87% 41% 59%
1997-98 14% 86% 41% 59%
1998-99 14% 86% 41% 59%
1999-00 14% 86% 41% 59%
2000-01 16% 84% 42% 58%
ETHNIC BACKGROUND
FISCAL AMERICAN MEAN
YEAR INDIAN ASIAN BLACK HISPANIC WHITE OTHER AGE
1991-92 12% 1% 1% 9% 77% 0% 32
1992-93 13% 2% 1% 9% 75% 0% 30
1993-94 12% 2% 2% 9% 75% 0% 30
1994-95 14% 2% 1% 10% 72% 1% 29
1995-96 15% 2% 1% 10% 70% 2% 29
1996-97 15% 2% 1% 10% 71% 1% 29
1997-98 15% 2% 1% 9% 72% 1% 29
1998-99 15% 1% 1% 9% 73% 1% 29
1999-00 15% 1% 2% 9% 71% 1% 29
2000-01 18% 2% 1% 9% 69% 1% 29
Source: District records
Note: Coconino Community College students only - does not include CCC/NAU students.
47
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
ECONOMIC INDICATORS FOR COCONINO COUNTY
JUNE 30, 2001
Coconino County Non-Farm Employment by Sector*
Number of Percent of
Sector Personnel Total
Mining & Quarrying 75 0.13
Manufacturing 2,550 4.33
Construction 3,200 5.44
Transportation, Communication & Utilities 1,650 2.80
Trade 13,775 23.42
Finance, Insurance & Real Estate 1,300 2.21
Services & Miscellaneous 16,650 28.30
Government 19,625 33.36
Totals 58,825 100.00 %
Total Unemployment Rate (6 Month Average) for Coconino County 5.60 %
Arizona June 2001 Unemployment Rate 4.40 %
United States June 2001 Unemployment Rate 4.50 %
Source: Arizona Department of Economic Security (DES)
* Employment by Sector statistics are based on the first six months of the 2001 annual a
All Unemployment Rates are sesonally adjusted
48
COCONINO COUNTY COMMUNITY COLLEGE DISTRICT
MISCELLANEOUS STATISTICS
JUNE 30, 2001
Established: July 1, 1991
Geographical Location: North Central portion
State of Arizona
Altitude: Flagstaff Campus/District Offices 7,000 Feet
Page Campus 4,300 Feet
Population Projections 2001 1 25,820
Coconino County* 2005 1 35,595
2010 1 47,352
2015 1 58,753
2020 1 69,343
2025 1 79,555
Number of Faculty: Full-time. . . . . . 30
Part-time. . . . .180
Number of Administrative
and Support Staff: 9 8
Average Class Size: 1 6
Source: District records
* Arizona Department of Economic Security, 1997 Projections
Object Description
| Rating | |
| TITLE | Comprehensive annual financial report / Coconino County Community College District |
| CREATOR | Coconino County Community College District. |
| SUBJECT | Coconino County Community College District--Auditing; Community colleges--Arizona--Finance--Statistics;Coconino County Community College District--Appropriations and expenditures; Community colleges--Arizona--Coconino County--Finance--Statistics; |
| Browse Topic |
Education |
| DESCRIPTION | This title contains one or more publications. |
| Language | English |
| Contributor | Arizona. Office of the Auditor General. Financial Audit Division. |
| Publisher | Coconino County Community College District |
| Material Collection |
Annual Reports State Documents |
| Geographic Coverage | Coconino County (Ariz.) |
| Source Identifier | CCD 21.3:C 55 |
| Location | 36543724 |
| REPOSITORY | Arizona State Library, Archives and Public Records. |
Description
| TITLE | Coconino County Community College District Comprehensive Annual Financial Report 2001 |
| DESCRIPTION | 54 pages (PDF version). File size: 1085 KB |
| TYPE |
Text |
| RIGHTS MANAGEMENT | Copyright to this resource is held by the creating agency and is provided here for educational purposes only. It may not be downloaded, reproduced or distributed in any format without written permission of the creating agency. Any attempt to circumvent the access controls placed on this file is a violation of United States and international copyright laws, and is subject to criminal prosecution. |
| DATE ORIGINAL | 2001 |
| Time Period |
2000s (2000-2009) |
| ORIGINAL FORMAT | Born Digital |
| Source Identifier | CCD 21.3:C 55 |
| Location | 36543724 |
| DIGITAL IDENTIFIER | CAFR2001.pdf |
| DIGITAL FORMAT | PDF (Portable Document Format) |
| REPOSITORY | Arizona State Library, Archives and Public Records--Law and Research Library. |
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| Full Text | COCONINO COUNTY COMMUNITY COLLEGE DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2001 Prepared by DISTRICT BUSINESS AND ADMINISTRATIVE SERVICES OFFICE i COCONINO COUNTY COMMUNITY COLLEGE DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2001 T A B L E O F C O N T E N T S INTRODUCTORY SECTION Letter of Transmittal .........................................................................................................1 Government Finance Officers Association Certificate of Achievement........................ 13 Principal Officers ........................................................................................................... 14 Organizational Chart ..................................................................................................... 15 FINANCIAL SECTION Independent Auditors' Report ....................................................................................... 17 Basic Financial Statements: Balance Sheet............................................................................................................ 18 Statement of Changes in Fund Balances .................................................................. 20 Statement of Current Funds Revenues, Expenditures, and Other Changes............ 22 Notes to Financial Statements ................................................................................... 23 STATISTICAL SECTION Current Funds Revenues by Source ............................................................................ 35 Current Funds Expenditures by Function ..................................................................... 36 Expenditure Limitation - Statutory Limit to Budgeted Expenditures............................. 37 Property Tax Levies and Collections ............................................................................ 38 Secondary Assessed Value and Current Market Value of All Taxable Property ......... 39 Primary Property Tax Rates, Direct and Overlapping Governments ........................... 40 Secondary Property Tax Rates, Direct and Overlapping Governments ...................... 41 Computation of Legal Debt Margin............................................................................... 42 Direct and Overlapping Debt ........................................................................................ 43 Top Ten Principal Taxpayers........................................................................................ 44 Historic Enrollment ........................................................................................................ 45 Student Enrollment Demographic Statistics ................................................................. 46 Economic Indicators for Coconino County ................................................................... 47 Miscellaneous Statistics................................................................................................ 48 INTRODUCTORY SECTION September 28, 2001 TO THE CITIZENS OF COCONINO COUNTY COMMUNITY COLLEGE DISTRICT: We are pleased to provide to you the Comprehensive Annual Financial Report (CAFR) of the Coconino County Community College District (the District), Flagstaff, Arizona for the fiscal year ended June 30, 2001. Responsibility for both the accuracy and completeness of the data, as well as the fairness of the presentation, including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds of the District. All disclosures necessary to enable the reader to gain an understanding of the District's financial activities have been included. The CAFR is presented in three sections: Introductory, Financial, and Statistical. The introductory section acquaints the reader with the report. The financial section includes the basic financial statements, as well as the auditors' report on the financial statements for all funds of the District. The statistical section presents selected unaudited financial and demographic information presented on a multi-year basis. The District is required to undergo an annual 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 single audit, including the Schedule of Expenditures of Federal Awards and auditors' reports on internal controls and compliance with applicable laws and regulations, will be available by contacting the Vice President for Business and Administrative Services. Coconino County Community College District is committed to offering quality educational programs and services at a reasonable cost for the citizens of Coconino County. The District provides a wide range of programs, including general academic, technical-vocational, student development services, continuing education, and community service. ORGANIZATION AND ADMINISTRATION The District is governed by the State Board of Directors for Community Colleges of Arizona and operated as a comprehensive community college under the laws of the State of Arizona. It is governed by a five-member District Governing Board (the Board). Each Board member is elected from one of the five precincts in Coconino County on a six-year staggered basis. The Board has oversight responsibility and control over all District activities. The administrative staff is responsible for the daily operation of the District. 2 ENTITY The District is an independent reporting entity within the criteria established by generally accepted accounting principles and the Governmental Accounting Standards Board. The Board has governance responsibilities over all activities related to public community college education within the jurisdiction of the District. These responsibilities include the receipt of monies from local, state, and federal government sources and compliance with accompanying requirements of these funding source entities. However, the Board is not included in any other governmental "reporting entity" as defined in Section 2100, Codification of Governmental Accounting and Financial Reporting Standards, since Board members are elected by the public, have decision-making authority with the power to designate management, maintain the responsibility to significantly influence operations, and possess primary accountability for fiscal matters. All funds of the District are included in this report. HISTORY The citizens of Coconino County in November of 1990 established the District under the provisions of legislation enacted by the Arizona State Legislature in 1971. In May 1991, the District's funding was approved through special election, and operations began on July 1, 1991. The District boundaries are conterminous with the boundaries of Coconino County. ECONOMIC CONDITION AND OUTLOOK Coconino County is located in the northern portion of the State and encompasses an area of approximately 12 million acres or over 18,000 square miles. Its boundaries include the cities of Page, Fredonia, Tuba City, Grand Canyon, Williams, Sedona, and Flagstaff, as well as other smaller cities and towns, and all the unincorporated areas of the County. The County's 2000 population has been estimated at 116,320 by the U.S. Census Bureau. The Arizona Department of Economic Security projects the County population to reach 150,000 within the next ten years. The share of the County's labor force is heavily weighted towards government, trade, and service employment. These sectors employ over 85% of the entire county's nonagricultural work force. Relative to the rest of the state, the work force employed by government is high. Part of the reason for the large number of government workers in the county is the presence of several major national parks, the large portion of the county covered by Indian reservations and the high percentage of the total area in the county public lands; (94% of the county is public land; including Indian reservations which cover 45% of the county). The State and National economy have declined somewhat this past year, however, property values in Coconino County have grown nearly 6% and county unemployment rates have remained stable. Despite the County's strengthening economy, the District must contend with the continued limited funding from the State. The District is committed to improving and offering additional service to meet the county needs. These efforts are achieved through careful monitoring of costs, innovative partnerships and continual searching for cost savings opportunities. 3 GROWTH OF STUDENT POPULATION The District began in 1991, initially expecting to serve 600 students. Nearly 1,000 students registered the first semester. Since then, enrollment has increased dramatically. Today the District enrolls nearly 10,000 students annually (duplicated headcount). MAJOR INITIATIVES The District's major initiatives for the coming fiscal year are: • Completing numerous construction projects including: 1) The Lone Tree Campus and District Offices, a 128,000 square foot facility in Flagstaff scheduled to be open for classes in Spring of 2002; 2) The Page/Lake Powell Campus addition of approximately 5,000 square feet; 3) The Williams Campus of approximately 5,000 square feet; and 4) A significant remodeling project for the Fourth Street Campus and Technology Center. • The District has initiated a concentrated effort to provide more workforce development and technical training. The voters of Arizona recently passed a 0.6% sales tax to assist in this effort, with all revenue being passed on to educational institutions for the purposes of workforce development. Coconino Community College anticipates receiving over $360,000 in FY02 from this sales tax, which the District is restricting to fund workforce development initiatives. • Technology and Distance Learning - In fiscal year 2000, the District was awarded the Title III Grant for Distance Learning. This grant, along with District operating funds and bond proceeds offer the funding needed to progress with distance learning initiatives in an effort to provide educational opportunities to our widespread District. Equipment will be provided at each of the campuses as well as other sites within the County. These distance learning initiatives will provide many more opportunities to the placed bound communities within the County. • Accreditation/Assessment/Institutional Effectiveness - The North Central Association of Colleges and Secondary Schools (NCA) awarded the District five-year accreditation in 1996. The District is preparing for the re-accreditation process, and NCA is scheduled to visit during April of 2002. The District has set up a steering committee comprised of staff from various disciplines to ensure that the District is prepared for the re-accreditation effort. The District has performed student, employee and community surveys to assess the effectiveness, interest and support of the overall mission. This assessment, as well as a District-wide self-study process is currently being undertaken to ensure our institutional effectiveness now and in the future. 4 Fiscal Year 2001 Accomplishments Significant accomplishments for fiscal year 2001 include: • Completed a restructuring effort for the organization. • Revised the strategic plan and assessment projects in preparation for the NCA visit. • Completed approximately 60% of all the capital development bond initiatives throughout the District. • Purchased the 60,000 square foot facility in Flagstaff, Fourth Street Campus and Technology Center. This facility was the original Flagstaff Campus and was rented from the District’s inception until June 2001. • The voters of Arizona approved an increase in sales tax to fund workforce development, thereby increasing the District’s revenue base for fiscal year 2002. • Fully retired a Certificates of Participation debt issue that was initiated in 1996 for the construction of the Page Campus. • Improved our community participation and resource base by increased partnerships and collaboration with other entities . • Updated and renewed several policies and procedures for the overall improvement to the institution’s effectiveness. • Continued to review and improve the salary and benefits plan for all District personnel to assist with the retention and turnover rates of our most valuable resource. • Performed a complete review of the chart of accounts and revised numerous funds, organizations, and accounts to reflect the new organization and improve the comparability with other institutions. FINANCIAL INFORMATION The District's responsibilities for stewardship, safeguarding of assets, and accountability to resource providers are fulfilled by effective management of these funds through internal control, budgetary controls, cash management, and financial reporting. Internal Control The District’s administration is responsible for establishing and maintaining a system of internal controls designed to ensure that the assets of the District are protected from loss, theft or misuse and to ensure adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. Internal controls are designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. 5 All internal control evaluations occur within the above framework. We believe the District's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The District's annual audit was conducted by the Certified Public Accounting firm of Heinfeld & Meech, P.C. The auditors consider the adequacy of internal controls and test the District's compliance with applicable laws and regulations. The results of their audit procedures will be described in the auditors' report on compliance and on internal control over financial reporting to be issued later. Single Audit As a recipient of federal, state, and local assistance, the District also is responsible for providing adequate internal controls to ensure compliance with applicable laws and regulations related to those programs. This internal control system is subject to periodic evaluation by management and the independent auditors of the District. As part of the District's single audit, the auditors have tested the District's compliance with requirements applicable to each of its major federal programs and considered its internal control over compliance with requirements that could have a direct and material effect on a major federal program. The results of their audit procedures will be described in the auditors' report on compliance with requirements applicable to each major program and internal control over compliance to be issued later. Copies of the single audit reports will be available in the Office of the Vice President for Business and Administrative Services. Budgetary Controls The District maintains budgetary controls by line-item of the approved budget. Budget transfers are restricted by function and object. The objective of these budgetary controls is to ensure compliance with the annual budget adopted by the District's Governing Board. The legal level of budgetary control is by summary line item of the current and plant funds. The District complies with Arizona Revised Statutes §41-1279.07 requiring that an annual report be filed with the State Board of Directors for Community Colleges of Arizona comparing the adopted budgets with the actual revenues and expenditures. Budgetary compliance is also demonstrated with the issuance of an annual budgeted expenditure limitation report, which is also audited. The expenditure limitation calculation determines the maximum allowable expenditure budget capacity for current and plant funds. An encumbrance accounting system is maintained by the District as one technique of accomplishing budgetary control. Open encumbrances are not reported as reservations of fund balance at year end, but are liquidated, (lapse at year end). Encumbrances are re-established at the beginning of the next fiscal year as an obligation against the current year's adopted budget. 6 Schedules of budget to actual data for General fund revenues and expenditures for the fiscal year ended June 30, 2001, follow: Variance Favorable Percent Budget Actual (Unfavorable) Change Revenues: Property taxes $ 3,886,056 $ 3 ,861,021 $ (25,035) (0.64) % State appropriations 3 ,130,800 3 ,130,800 - - % Governmental grants and contracts 2 0,749 21,209 460 2 .22 % Tuition and fees 2 ,048,773 2 ,354,189 3 05,416 1 4.91 % Investment income 3 78,240 5 24,791 146,551 3 8.75 % Other 60,134 6 0,797 663 1.10 % Carry Forward 8 3,762 (83,762) ( 100.00) % Total revenues 9 ,608,514 9 ,952,807 3 44,293 3 .58 % Expenditures by program Instruction 3 ,714,821 3 ,645,235 6 9,586 1 .87 % Academic support 1 ,255,217 1 ,196,342 5 8,875 4 .69 % Student services 1 ,053,335 1 ,025,541 2 7,794 2 .64 % Institutional support 1 ,980,995 1 ,981,788 (793) (0.04) % Operation and maintenance of plant 1 ,063,835 9 83,243 8 0,592 7 .58 % Contingency & Reserves 3 00,000 3 00,000 1 00.00 % Scholarships and student support 2 7,500 19,554 7,946 2 8.89 % Total expenditures 9 ,395,703 8 ,851,703 5 44,000 5 .79 % Expenditures by object Employee Salaries and Wages 5 ,754,201 5 ,549,605 2 04,596 3 .56 % Employee Benefits 1 ,065,916 9 79,768 86,148 8 .08 % Contracted Services 5 34,315 7 06,632 (172,317) ( 32.25) % Supplies 5 08,256 4 05,790 1 02,466 2 0.16 % Fixed Charges 5 87,020 5 72,085 14,935 2 .54 % Utilities & Communications 2 22,190 1 93,688 2 8,502 1 2.83 % Other Operating 1 68,529 2 23,457 (54,928) ( 32.59) % Travel 1 94,076 1 62,638 31,438 1 6.20 % Miscellaneous 3 3,700 3 8,486 (4,786) (14.20) % Contingency 3 00,000 - 3 00,000 1 00.00 % Scholarships 2 7,500 19,554 7,946 2 8.89 % Total expenditures 9 ,395,703 8 ,851,703 5 44,000 5 .79 % Transfers Mandatory transfers - Restricted Cash Match (80,553) (83,650) 3,097 (3.84) % Nonmandatory transfers - Auxliary Fund 2 0,973 4 5,478 (24,505) (116.84) % Nonmandatory transfers - Plant Fund (153,231) ( 3,082,073) 2 ,928,842 (1,911.39) % Total transfers (212,811) (3,120,245) 2 ,907,434 ( 1,366.20) % Net increase (decrease) in fund balances $ - $ (2,019,141) $ (2,019,141) General Fund: Budget to Actual Fiscal Year Ended June 30, 2001 7 DISTRICT FUNCTIONS The District exercises primary property tax levy authority for generation of funds for operating purposes. State appropriations are also received based on full-time student enrollment and formula funding. 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 facilitated through the Vice-President for Business and Administrative Services. Idle funds are invested by the District in a prudent, conservative, and secure manner for the highest yield as prescribed by Arizona Revised Statutes. General Fund monies are on deposit with the State Treasurer. Amounts which are idle during the year are invested by the Treasurer on a pooled basis with the interest prorated back to the District. During the year, idle funds were invested in demand deposits, notes, commercial paper, and certificates of deposit through the State of Arizona Local Government Investment Pool. The average yield on investments was 6.126 percent. The District's cash management objective is to equal or exceed the average returns on the thirteen week U.S. Treasury Bill rates. The average yield for 90-day U.S. Treasury Bills issued during the year was 5.297 percent. Financial Reporting The Comprehensive Annual Financial Report (CAFR) for the District was formulated with data from several sources including: District records, Coconino County Department of Finance reports, and Northern Arizona University College of Business economic outlook report. These 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 is distributed to the District Governing Board and executive management, the State legislature, 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 decision-making needs at all levels of the organization to aid management in the allocation of resources. Debt Administration The District sold $25 million in general obligation bonds in January 1999. The voters of Coconino County have approved a secondary tax to retire this debt. These bonds are tax exempt and therefore subject to federal arbitrage requirements. The District has contracted with Gust-Rosenfeld for bond counsel and Dain-Rauscher for financial advisement in the administration of this debt to ensure compliance with all state and federal regulations. A previous debt issue, certificates of participation (COPs) in the amount of $1,550,000, was retired this fiscal year. The COPs were utilized to fund the construction of the Page Campus in 1996; approximately $350,000 per year of current revenues were pledged and used to retire the debt. 8 CURRENT FUNDS The result of the financial activities for the current funds is a fund balance of $2,942,866. The combined current funds (general, auxiliary and restricted) fund balances were 26% of the total current fund expenditures, which approximates 95 days of expenditure coverage. The following schedules present summaries of Current Funds revenues and expenditures for the fiscal year ended June 30, 2001 and the amount and percentage of change in relation to prior year revenues and expenditures: CHANGE PERCENT AMOUNT PERCENT FROM 2000 CHANGE REVENUES (in Thousands) OF TOTAL (in Thousands) FROM 2000 Property Taxes $ 3 ,861 31.7% $ 75 2.0 % State Appropriations 3,131 25.7% - - % Governmental Grants and Contracts 2 ,039 16.8% 4 56 28.9 % Private Gifts, Grants and Contracts 142 1.2% 112 373.3 % Tuition and Fees 2 ,366 19.5% 3 53 17.5 % Investment Income & Other 6 32 5.2% 47 8.0 % Total Current Funds Revenues $ 1 2,171 100.0% $ 1 ,043 9.4 % Current Fund Revenues CHANGE PERCENT AMOUNT PERCENT FROM 2000 CHANGE EXPENDITURES (by function) (in Thousands) OF TOTAL (in Thousands) FROM 2000 Instruction $ 3,834 34.5% $ 508 15.3 % Public Service 148 1.3% 6 4.2 % Academic Support 1,633 14.7% 471 40.5 % Student Services 1,255 11.3% 117 10.3 % Institutional Support 1,977 17.8% 274 16.1 % Operation & maintenance of plant 983 8.8% 34 3.6 % Scholarships and student support 1,249 11.2% 198 18.8 % Auxiliary Enterprises Expenditures 36 0.3% (187) (83.9) % Provision for Bad Debts 8 0.1% (7) (46.7) % Total Current Funds Expenditures $ 11,123 100.0% $ 1,414 14.6 % Current Fund Expenditures 9 The unique needs of the District and the state-wide economic development are being translated and prioritized in our strategic plan. This plan along with projections of future revenues and expenditures, provide a base for future budget planning. GENERAL FUND The General Fund accounts for over 80% of the revenues and expenditures of the current funds group. This fund accounts for the primary resources in support of the District’s mission. These monies are unrestricted and provide the revenues to accomplish the majority of the District’s maintenance and operations. AUXILIARY ENTERPRISES FUND The Auxiliary Enterprises Fund account for transactions of substantially self-supporting auxiliary activities that perform a service primarily to students, faculty, and staff. Funds also support educational activities. The District’s Auxiliary Enterprises consist primarily of a bookstore and vending services. RESTRICTED FUNDS The Restricted Funds account for transactions of funds which are regulated by the sponsoring agency. These funds include primarily grant and financial aid programs for the District. PLANT FUNDS The Plant Funds consist of the Unexpended Plant Fund, Retirement of Indebtedness Plant Fund, and the Investment in Plant Fund. These funds account for the District's capital transactions relating to the investment in plant assets. The following table summarizes the Unexpended Plant Fund revenues and expenditures for the fiscal year ended June 30, 2001 and the amount, and percentage of change in relation to prior year revenues and expenditures. 10 The following schedule summarizes the Retirement of Indebtedness Fund for the fiscal year ended June 30, 2001 and the amount and percentage of change in relation to prior year revenues and expenditures. All property, buildings, and equipment of the District are accounted for in the Investment in Plant Fund. As of June 30, 2001, the District had fixed assets of $25,955,836. Depreciation of these assets is not recognized. The following schedule summarizes the Investment in Plant Fund for the fiscal year ended June 30, 2001 and the amount and percentage of change in relation to prior year revenues and expenditures. CHANGE PERCENT AMOUNT PERCENT FROM 2000 CHANGE REVENUES AND TRANSFERS (in Thousands) OF TOTAL (in Thousands) FROM 2000 State Appropriations $ 313 1.7% $ (72) (18.7) % Investment Income 885 4.8% (293) (24.9) % Other 3 0.0% (3) (50.0) % Transfers In 17,314 93.5% 11,839 216.2 % Total Revenues & Transfers $ 18,515 100.0% $ 11,471 162.9 % EXPENDITURES (by object) & TRANSFERS Expended for Plant Facilities $ 17,268 99.0% $ 13,728 387.8 % Transfers Out 179 1.0% (247) (58.0) % Total Expenditures & Transfers $ 17,447 100.0% $ 13,481 339.9 % Net Increase $ 1,068 Unexpended Plant Fund CHANGE PERCENT AMOUNT PERCENT FROM 2000 CHANGE REVENUES AND TRANSFERS (in Thousands) OF TOTAL (in Thousands) FROM 2000 Property Taxes $ 1,847 91.2% $ 85 4.8 % Transfer In 179 8.8% (247) (58.0) % Total Revenues & Transfers $ 2,026 100.0% $ (162) (7.4) % EXPENDITURES (by object) & TRANSFERS Retirement of Indebtedness $ 715 36.6% $ 380 113.4 % Interest on Indebtedness 1,222 62.5% (631) (34.1) % Provision for Bad Debts 17 0.9% 17 100.0 % Total Expenditures & Transfers $ 1,954 100.0% $ (234) (10.7) % Net Increase $ 72 Retirement of Indebtedness Fund 11 RISK MANAGEMENT A full complement of insurance coverage is maintained for the District in accordance with (and usually in excess of) requirements established by the State Board of Directors for Community Colleges of Arizona. Liability coverage is broad in form, including errors and omissions and "wrongful acts" coverage, and is maintained with policy limits totalling $10,000,000. Casualty coverages are maintained on a replacement value basis with a schedule of values agreed upon between the carrier and the District. Miscellaneous coverages include crime and fidelity coverages. Workers' Compensation coverage is maintained through the State Fund. INDEPENDENT AUDIT The District utilized the audit services of the Certified Public Accounting firm of Heinfeld & Meech, PC, to comply with Arizona Revised Statutes, which require an annual audit of the District's financial statements. This requirement has been complied with and the Independent Auditors' Report is included in this document. The auditors' expressed an unqualified opinion. GFOA CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Coconino Community College for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2000. This was the sixth consecutive year that Coconino Community College has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. CHANGE PERCENT AMOUNT PERCENT FROM 2000 CHANGE REVENUES AND TRANSFERS (in Thousands) OF TOTAL (in Thousands) FROM 2000 Expended for Plant Facilities $ 17,488 96.1% $ 13,834 378.6 % Retirement of Indebtedness 715 3.9% 380 113.4 % Total Revenues & Transfers $ 18,203 100.0% $ 14,214 356.3 % EXPENDITURES (by object) & TRANSFERS Disposal of Plant Facilities $ 117 0.8% $ (146) (55.5) % Transfers-Out 14,235 99.2% 11,118 356.7 % Total Expenditures & Transfers $ 14,352 100.0% $ 10,972 324.6 % Net Increase $ 3,851 Investment in Plant Fund 12 A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENT We thank the members of the District Governing Board for their interest and support in planning and conducting the financial operations of the District in a highly responsible and progressive manner. The preparation of this report could not have been accomplished without the hard work and dedicated services of the Business and Administrative Services staff. Appreciation is also expressed to Heinfeld & Meech, P.C. for timely completion of the audit. Respectfully submitted, Thomas S. Jordan Jami V. Bradley, Vice President President Business and Administrative Services 13 14 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT PRINCIPAL OFFICERS DISTRICT GOVERNING BOARD Nat White, Chair, District 1 Daniel W. Baertlein, Secretary, District 3 Val Gleave, Member, District 5 Carole Mandino, Member, District 2 Paul Neuman, Member, District 4 ADMINISTRATION Thomas S. Jordan, President Jami V. Bradley, Vice-President for Business and Administrative Services Kathleen Corak-Sund, Vice-President for Academic Affairs Terree Duncan, Dean for Student Services Lloyd Hammonds, Dean for Page Campus Michael Lainoff, Dean for Extended Learning 15 ORGANIZATIONAL CHART Dean for the Page Campus Public Relations Accounting & Budget Facilities Management Human Resources Information Technology Services Purchasing & Auxiliary Services Vice President Business & Administrative Services Arts & Sciences Division Career & Technical Education Division Institutional Research and Assessment Vice President Academic Affairs Admissions & Records Financial Aid Learning Enhancement Dean for Student Services Continuing Education Grand Canyon Extension Small Business Development Center Williams Extension Dean for Extended Learning President's Office District Governing Board Coconino County Citizens 16 This page intentionally left blank. FINANCIAL SECTION 17 INDEPENDENT AUDITORS REPORT The Auditor General of the State of Arizona The Governing Board of Coconino County Community College District We have audited the accompanying balance sheet of Coconino County Community College District as of June 30, 2001, and the related statements of changes in fund balances and current funds revenues, expenditures, and other changes for the year then ended. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Coconino County Community College District as of June 30, 2001, and the changes in its fund balances and its current funds revenues, expenditures, and other changes for the year then ended in conformity with U.S. generally accepted accounting principles. As discussed in Note 13 to the financial statements, the District changed its capitalization threshold for property, buildings and equipment. The information included in the introductory and statistical sections listed in the table of contents has not been subjected to the auditing procedures applied in our audit of the financial statements and, accordingly, we express no opinion on such information. In accordance with Government Auditing Standards, we have also issued our report dated September 28, 2001, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. HEINFELD & MEECH, P.C. Certified Public Accountants September 28, 2001 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT Balance Sheet June 30, 2001 (with comparative totals for 2000) Current Funds Unrestricted Total Current Funds Auxiliary (Memorandum Only) General Enterprises Restricted 2001 2000 Assets Cash in bank and on hand $ - $ - $ - $ - $ 1,520,569 Cash and investments held by the County Treasurer 1 25,443 1 25,443 123,232 Investments 7 ,158,813 7 ,158,813 7,152,777 Receivables: Property taxes (net of allowances of $54,747 and 8 4,061 8 4,061 129,223 $41,480 as of June 30, 2001 and June 30, 2000, respectively) Government grants 1 97,881 1 97,881 130,925 Interest 7 5,191 7 5,191 103,798 Other (net of allowances of $59,537 and $52,287 9 2,705 2 ,764 9 5,469 243,738 as of June 30, 2001 and June 30, 2000, respectively) Due from other funds 2 ,615 2 ,615 380,493 Prepaid items 5 1,816 1 ,943 5 3,759 166,429 Property, buildings, and equipment: Land Buildings Improvements Other than Buildings Equipment Vehicles Library collections Construction in progress (estimated cost to complete at June 30, 2001 $3,446,811; estimated cost to complete at June 30, 2000 $15,470,010) Total assets $ 7,588,029 $ 5 ,379 $ 1 99,824 $ 7,793,232 $ 9,951,184 Liabilities and Fund Balances Liabilities: Accounts payable $ 1 23,688 $ 3 49 $ 42,721 $ 1 66,758 $ 163,159 Accrued liabilities 7 22,798 3 ,524 7 26,322 741,431 Deposits held in custody for others Due to other funds 3 ,546,111 1 17,704 3 ,663,815 3,326,702 Bonds payable Obligation under certificates of participation Arbitrage payable Interest payable Deferred revenues 2 54,072 3 9,399 2 93,471 742,006 Total liabilities 4 ,646,669 3 ,873 1 99,824 4 ,850,366 4,973,298 Fund balances: Unrestricted: General 2 ,941,360 1 ,506 2 ,942,866 4,977,886 Net investment in plant Total fund balances 2 ,941,360 1 ,506 - 2 ,942,866 4,977,886 Total liabilities and fund balances $ 7,588,029 $ 5 ,379 $ 1 99,824 $ 7,793,232 $ 9,951,184 See accompanying notes to financial statements. 18 Plant Funds Retirement Total All Funds of Investment Agency (Memorandum Only) Unexpended Indebtedness in Plant Fund 2001 2000 (restated) $ - $ - $ - $ - $ - $ 1,520,569 1 25,443 1 23,232 9 ,644,460 1 6,803,273 30,592,350 3 8,876 122,937 1 29,223 1 97,881 1 30,925 9 6,843 1 72,034 4 21,586 9 5,469 2 49,370 3 ,586,965 3 2,958 46,134 3,668,672 3,331,559 5 3,759 1 66,429 1 ,089,000 1 ,089,000 1,089,000 5 ,292,078 5 ,292,078 2,376,705 1 8,461 18,461 1 8,461 1 ,382,283 1 ,382,283 1,151,140 2 1,790 21,790 2 1,790 2 7,729 27,729 2 7,729 18,124,495 1 8,124,495 3,899,835 $ 13,328,268 $ 7 1,834 $ 25,955,836 $ 46,134 $ 4 7,195,304 $ 45,249,903 $ 6 96,853 $ - $ - $ 256 $ 863,867 $ 1,262,758 726,322 7 41,431 45,878 45,878 2 1,877 4 ,857 3,668,672 3,331,559 6 ,998,010 17,461,990 2 4,460,000 25,000,000 - 1 75,000 5 64,406 564,406 3 55,529 - 2 ,231 293,471 7 42,006 8 ,259,269 - 17,466,847 46,134 3 0,622,616 31,632,391 5 ,068,999 7 1,834 8,083,699 8,979,323 8 ,488,989 8 ,488,989 4,638,189 5 ,068,999 7 1,834 8 ,488,989 1 6,572,688 13,617,512 $ 13,328,268 $ 7 1,834 $ 25,955,836 $ 46,134 $ 4 7,195,304 $ 45,249,903 19 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT Statement of Changes in Fund Balances Year Ended June 30, 2001 (with comparative totals for 2000) Current Funds Unrestricted Total Current Funds Auxiliary (Memorandum Only) General Enterprises Restricted 2001 2000 Revenues and other additions: Unrestricted current revenues $ 9 ,952,807 $ 6 5,860 $ - $ 10,018,667 $ 9 ,542,507 Property Taxes State appropriations Governmental grants and contracts 2,013,971 2,013,971 1,560,922 Private gifts, grants, and contracts 134,081 134,081 20,087 Investment income Sale of surplus property Capital cost recovery Expended for plant facilities (Including $220,190 and $114,244 of expenditures charged to current funds in 2001 and 2000, respectively) Retirement of indebtedness Total revenues and other additions 9,952,807 65,860 2,148,052 12,166,719 11,123,516 Expenditures and other deductions: Educational and general expenditures 8,844,119 2,216,418 11,060,537 9,453,737 Auxiliary enterprises expenditures 36,261 36,261 222,544 Indirect costs recovered 18,918 18,918 17,690 Provision for bad debts 7,584 7,584 14,735 Expended for plant facilities Retirement of indebtedness Interest on indebtedness Disposal of plant facilities Total expenditures and other deductions 8,851,703 36,261 2,235,336 11,123,300 9,708,706 Transfers among funds additions (deductions): Mandatory transfers for: Principal and interest College matching portion of government grants (83,650) 83,650 - - Total mandatory transfers (83,650) 83,650 - - Nonmandatory transfers (net) (3,036,595) ( 45,478) 3,634 (3,078,439) ( 2,358,510) Total transfers (3,120,245) ( 45,478) 87,284 (3,078,439) ( 2,358,510) Net increase (decrease) for the year (2,019,141) ( 15,879) - (2,035,020) ( 943,700) Fund balances, beginning of year, as restated 4,960,501 17,385 - 4,977,886 5,921,586 Fund balances, end of year $ 2,941,360 $ 1,506 $ - $ 2,942,866 $ 4,977,886 See accompanying notes to financial statements. 20 Plant Funds Retirement Total All Funds of Investment (Memorandum Only) Unexpended Indebtedness in Plant 2001 2000 (restated) $ - $ - $ - $ 10,018,667 $ 9 ,542,507 1 ,846,522 1,846,522 1,761,604 3 13,300 3 13,300 384,900 2 ,013,971 1,560,922 1 34,081 2 0,087 8 85,006 885,006 1,178,536 1 ,221 1 ,221 1 ,497 1 ,497 5,632 17,488,004 17,488,004 3 ,654,167 715,000 715,000 335,000 1 ,201,024 1 ,846,522 18,203,004 33,417,269 18,443,355 1 1,060,537 9 ,453,737 3 6,261 222,544 1 8,918 17,690 1 7,313 24,897 14,735 1 7,267,814 17,267,814 3 ,539,923 7 15,000 715,000 335,000 1 ,221,838 1,221,838 1,853,040 116,828 116,828 263,516 1 7,267,814 1 ,954,151 116,828 30,462,093 15,700,185 (179,463) 1 79,463 - - - - (179,463) 1 79,463 - - - 1 7,313,815 ( 14,235,376) - - 1 7,134,352 1 79,463 ( 14,235,376) - - 1 ,067,562 7 1,834 3,850,800 2 ,955,176 2 ,743,170 4 ,001,437 - 4,638,189 13,617,512 10,874,342 $ 5 ,068,999 $ 7 1,834 $ 8,488,989 $ 16,572,688 $ 13,617,512 21 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT Statement of Current Funds Revenues, Expenditures, and Other Changes Year Ended June 30, 2001 (with comparative totals for 2000) Unrestricted Total Current Funds Auxiliary (Memorandum Only) General Enterprises Total Restricted 2001 2000 Revenues: Property taxes $ 3 ,861,021 $ - $ 3,861,021 $ - $ 3,861,021 $ 3,785,749 State appropriations 3 ,130,800 3,130,800 3,130,800 3,130,800 Governmental grants and contracts 2 1,209 21,209 2,017,605 2,038,814 1,593,680 Private gifts, grants, and contracts 7,487 7,487 134,081 141,568 29,567 Tuition and fees 2 ,354,189 12,181 2,366,370 2,366,370 2,013,005 Investment income 5 24,791 524,791 524,791 476,039 Other 6 0,797 46,192 106,989 106,989 109,744 Total revenues 9 ,952,807 65,860 10,018,667 2,151,686 12,170,353 11,138,584 Expenditures and mandatory transfers: Educational and general expenditures: Instruction 3 ,645,235 3,645,235 189,276 3,834,511 3,325,782 Public service 148,276 148,276 142,287 Academic support 1 ,196,342 1,196,342 436,446 1,632,788 1,162,479 Student services 1 ,025,541 1,025,541 229,381 1,254,922 1,138,132 Institutional support (administration) 1 ,974,204 1,974,204 2,556 1,976,760 1,703,198 Operation and maintenance of plant 9 83,243 983,243 983,243 948,800 Scholarships and student support 1 9,554 19,554 1,229,401 1,248,955 1,050,749 Total educational and general expenditures 8 ,844,119 8,844,119 2,235,336 11,079,455 9,471,427 Auxiliary enterprises expenditures 36,261 36,261 36,261 222,544 Provision for bad debts 7 ,584 7,584 7,584 14,735 Total expenditures 8 ,851,703 36,261 8,887,964 2,235,336 11,123,300 9,708,706 Mandatory transfers for: College matching portion of government grants (83,650) - (83,650) 83,650 - - Total mandatory transfers (83,650) - (83,650) 83,650 - - Total expenditures and mandatory transfers 8 ,935,353 36,261 8,971,614 2,151,686 11,123,300 9,708,706 Other transfers and additions (deductions): Excess of transfers to revenues over restricted receipts ( 3,634) ( 3,634) (15,068) Nonmandatory transfers (net) (3,036,595) ( 45,478) (3,082,073) 3,634 ( 3,078,439) (2,358,510) Net increase (decrease) in fund balances $ (2,019,141) $ ( 15,879) $ (2,035,020) $ - $ ( 2,035,020) $ (943,700) See accompanying notes to financial statements. 22 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 23 NOTE 1 - Summary of Significant Accounting Policies The accounting policies of the Coconino County Community College District conform to generally accepted accounting principles as applied to governmental colleges and universities in the AICPA College Guide model as defined in Governmental Accounting Standards Board Statement No. 15. A summary of the District's more significant accounting policies follows. 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. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and it is not included in any other governmental reporting entity. The financial activities of Coconino County Community College Foundation, summarized in Note 6, are not included in the District's financial statements. The Foundation is a nonprofit corporation controlled by a separate board of directors. The Foundation s goals are to promote educational programs and District objectives. Fund Accounting - The District's accounts are maintained in accordance with the principles of fund accounting to ensure that limitations and restrictions on the District's available resources are observed. The principles of fund accounting require that resources be classified for accounting and reporting purposes into funds in accordance with the activities or objectives specified for those resources. Accounts are separately maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, financial transactions are reported by fund groups as if each fund group was a single fund. A description of the funds follows. Descriptions of Funds - The Current Funds account for resources that will be expended in the near term for operating purposes in performing the District's primary and support missions, which are instruction, public service, academic support, student services, institutional support, operation and maintenance of plant, scholarships, and auxiliary enterprises. The individual Current Funds are described more fully as follows: • The General Fund accounts for all current financial resources not required to be accounted for in the other Current Funds. • The Auxiliary Enterprises Fund accounts for transactions of substantially self- supporting auxiliary activities that perform services primarily to students, faculty, and staff, such as the bookstore and contract instruction. COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 24 NOTE 1 Summary of Significant Accounting Policies (continued) • The Restricted Fund accounts for resources that are expended only for operating purposes specified by donors or other outside agencies. The Restricted Fund s revenues are reported in the statement of current funds revenues, expenditures, and other changes only to the extent of expenditures and net mandatory transfers. Amounts received in excess of expenditures and net mandatory transfers are reported as additions to the fund balance during the year, and may be subject to repayment if not expended. The other funds of the District and their purposes are described as follows: • The Plant Funds account for transactions relating to the District's investment in plant assets such as property, buildings, and equipment. The individual Plant Funds are described more fully as follows: The Unexpended Plant Fund accounts for resources available to finance the District s acquisition, construction, or improvement of plant assets. Expenditures for construction in progress are accumulated in this fund until the project is completed or until the end of the fiscal year and then transferred to the Investment in Plant Fund. Resources restricted for renewals and replacements of existing District plant assets are also recorded in the Unexpended Plant Fund. The Retirement of Indebtedness Plant Fund accounts for the accumulation of resources for payment of principal, interest, and other debt service charges, including contributions for sinking funds relating to debt incurred in financing District plant assets. The Investment in Plant Fund accounts for the costs of the District's plant assets and the associated liabilities. Assets recorded in the Investment in Plant Fund may be acquired from resources in the Unexpended Plant, Auxiliary Enterprises, and Restricted Funds. • The Agency Fund accounts for resources held by the District as custodian or fiscal agent for students, faculty, staff, and other organizations; therefore, the transactions within this fund do not affect the statement of changes in fund balances. COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 25 NOTE 1 Summary of Significant Accounting Policies (continued) Basis of Accounting - The financial statements are presented on the accrual basis of accounting. The statement of current funds revenues, expenditures, and other changes is a statement of financial activities of current funds related to the current reporting period. It does not claim to present the results of operations, or the net income or loss for the period as would a statement of income, or a statement of revenues and expenses. 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, and highly liquid investments. All other investments are stated at fair value. Property, Buildings, and Equipment - Property, buildings, and equipment are capitalized at cost if purchased, or estimated fair market value at the time received in the case of gifts. Major outlays for assets or improvements to them are capitalized as projects are constructed. Interest incurred during the construction phase of the project is capitalized net of interest earned on the invested proceeds over the same period. To the extent that current fund monies are used to finance such assets, the amounts so provided are accounted for as expenditures in the case of normal acquisition or replacement of movable equipment and library books; mandatory transfers (transfers among funds resulting from legally binding agreements) in the case of required provisions for debt amortization and interest, and equipment renewal and replacement; or nonmandatory transfers (transfers among funds made at the discretion of the Governing Board) in other cases. Depreciation on buildings and equipment is not recorded. Compensated Absences - Compensated absences consist of vacation leave, compensatory time earned, and a calculated amount of sick leave earned by employees based on services already rendered. Employees may accumulate vacation and compensatory hours up to 1.5 times their annual vacation accrual, but such hours in excess of the maximum amount that are unused at year-end are forfeited. Generally, sick leave benefits provide for ordinary sick pay and are cumulative but do not vest with employees and therefore, are not accrued. However, for employees who are 60 or over and who have 10 years of service, a portion (up to a maximum of $5,000) of their sick leave benefits do vest and, therefore, are accrued. Investment Income - Investment income is composed of interest, dividends, and net changes in the fair value of applicable investments. Income earned from investments purchased with pooled monies is allocated to each of the District s funds based on average monthly ending balance. COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 26 NOTE 1 Summary of Significant Accounting Policies (concluded) Summer Sessions - Summer sessions revenues and expenditures are reported in the General Fund within the fiscal year in which the total summer sessions program is predominantly conducted. Tuition and Fees - Tuition and fees revenues (net of refunds) include $17,680 of waivers for faculty and staff benefits charged to the appropriate expenditure category to which the benefited personnel relate. Financial Aid - When the District does not select the recipients for student financial aid, such awards are accounted for within the Agency Fund (except for Pell grants that are included in the Current Restricted Fund) and, consequently, are not included in the statement of changes in fund balances. During the year ended June 30, 2001, the District disbursed $325,420 in such student awards, primarily for private scholarships. Budget - An annual budget is prepared and legally adopted for the General Fund, Auxiliary Enterprise Fund, Restricted Fund, and Plant Funds. These budgets are prepared on a GAAP basis. Budget transfers within the General Fund are subject to limitations imposed by function and object. After adoption, the budget may only be modified downward by the Board. Expenditures may not exceed the adopted budget for each fund. Unexpended balances, including state appropriations received, carry over into next year as a financing source for the new year. Encumbrances - Encumbrance accounting, under which purchase orders, contracts, and other commitments to expend monies are recorded to reserve that portion of the applicable fund balance, is employed as an extension of formal budgetary control of the General Fund. Encumbrances outstanding at year-end for goods or services that were not received before fiscal year-end are cancelled. Total Columns (Memorandum Only) - The information in the Total Current Funds and Total All Funds columns is for comparison purposes only and does not purport to present financial position or the results of operations in conformity with generally accepted accounting principles (GAAP). Interfund eliminations have not been made and, therefore, the data is not comparable to a consolidation. NOTE 2 - Deposits and Investments Arizona Revised Statutes (A.R.S.) require 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. COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 27 NOTE 2 Deposits and Investments (concluded) Investments - At June 30, 2001, the District s investments consisted of the following. The District s investment in the State or County Treasurer s investment pools represents a proportionate interest in those pools portfolios; however, the District s portion is not identified with specific investments and is not subject to custodial credit risk. The State Board of Deposit 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. NOTE 3 - Property Taxes Receivable The Coconino County Treasurer is responsible for collecting property taxes for all governmental entities within the County. The County levies the property taxes due to the District in August. Two equal installments, payable in October and March, become delinquent after the first business day in November and May. A lien assessed against real and personal property attaches on the first day of January preceding the assessment and levy. Fair Value Cash and investments held by the County Treasurer $ 125,443 Investment in State Treasurer's investment pool 16,803,273 Total $ 16,928,716 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 28 NOTE 3 Property Taxes Receivable (concluded) Property taxes receivable consist of uncollected property taxes as determined from the records of the County Treasurer's Office, and at June 30, 2001, the uncollected property taxes and related allowances for uncollectibles were as follows: NOTE 4 - Other Receivables Other receivables are shown net of the related allowances for uncollectibles. A summary of the allowances for uncollectibles for other receivables at June 30, 2001, follows: NOTE 5 Interfund Receivables/Payables Cash and investments (other than investments relating to the bond issue which are recorded in the Plant Fund) are recorded in the General Fund. The District s Interfund receivables and payables at June 30, 2001, were as follows: General Fund $ 59,537 Total $ 59,537 General Retirement of Fund Indebtedness Property Taxes Receivable $ 121,495 $ 56,189 Less allowance for uncollectibles 37,434 17,313 Net total $ 84,061 $ 38,876 Due From Due To Other Funds Other Funds General Fund $ $ 3,546,111 Auxiliary Enterprises Fund 2,615 Restricted Fund 117,704 Unexpended Plant Fund 3,586,965 Retirement of Indebtedness Fund 32,958 Investment in Plant Fund 4,857 Agency Fund 46,134 Total Interfund $ 3,668,672 $ 3,668,672 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 29 NOTE 6 Financially Interrelated Organizations In May 1996, the Coconino County Community College Foundation purchased from a third party the Flagstaff campus used by the District and became the lessor of the property to the District. The prior lease terms and obligations of the District did not change as a result of the transfer of ownership. On June 28, 2001, the District purchased the Flagstaff campus from the Foundation. Unaudited assets, fund balance, and revenues of the Foundation for the most recent fiscal year were $534,925, $528,373, and $869,795, respectively. The leasing of the Flagstaff campus to the District accounted for 45% of the Foundation s total revenues for their fiscal year ended June 30, 2001. NOTE 7 Obligations Under Operating Leases During the year ended June 30, 2001, the District leased the Flagstaff campus District offices and classroom space under the provisions of a long-term lease agreement classified as an operating lease for accounting purposes. Rental expenditures under the terms of the operating lease were $396,815 for the year ended June 30, 2001. On June 28, 2001, the District purchased the Flagstaff campus from the Coconino County Community College Foundation. Under the agreement of the purchase, the District assumed the lease payments for the land on which the Flagstaff campus resides. The lease agreement is classified as an operating lease for accounting purposes. The operating lease has a remaining noncancelable lease term of 23 years, allowing four renewal options for eleven years each, and rental payments are adjusted annually based on changes in the Consumer Price Index (CPI). The future minimum rental payments required under the operating lease at June 30, 2001, were calculated using an estimated CPI of 3% annually and are as follows. Year ending June 30: 2002 $ 28,833 2003 29,698 2004 30,589 2005 31,507 2006 32,452 Thereafter 727,389 Total minimum lease payments at June 30, 2001 $ 880,468 Future Minimum Operating Lease Payments COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 30 NOTE 8 - Bonds Payable General Obligation Bonds Payable. General obligation bonds payable at June 30, 2001, consisted of the outstanding general obligation bonds presented below. The bonds are generally callable with interest payable semiannually. The $25,000,000 in bonds were authorized by voters in November 1997, and were subsequently sold on January 7, 1999, at a net interest rate of 4.72%. Principal and interest requirements at June 30, 2001, were as follows: Outstanding Description Interest Rates Maturities Principal General Obligation Bonds Semi-annual Series A (1999) 4.3% - 5.75% 7/1/2019 $24,460,000 General obligation bond debt service requirements to maturity, including $12,970,662 of interest, are as follows: NOTE 9 - Certificates of Participation During fiscal year 1995-96, the District issued Certificates of Participation Series 1995 to finance the construction of the Page Campus. During the fiscal year ended June 30, 2001, the Certificates of Participation were retired: Outstanding Outstanding Principal Principal Interest Rates Maturities June 30, 2000 Retirements June 30, 2001 Certificates of Participation Series 1995 4.6% - 5.1% 1998-2001 $ 175,000 $ 175,000 $ - General Obligation Bond Debt Service Requirements to Maturity Year ending June 30, 2002 $ 1,813,343 2003 1,872,405 2004 1,931,005 2005 1,948,855 2006 1,967,968 Thereafter 27,897,086 $ 37,430,662 Total general obligation bond debt service requirements at June 30, 2001 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 31 NOTE 10 - Risk Management The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The District carries commercial insurance for all such risks of loss, including workers compensation and employees health and accident insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. NOTE 11 - 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 System, 3300 North Central Avenue, PO 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 rate. For the year ended June 30, 2001, active plan members and the District were each required by statute to contribute at the actuarially determined rate of 2.66 percent (2.17 percent retirement and 0.49 percent long-term disability) of the members annual covered payroll. The District s contributions to the System for the years ended June 30, 2001, 2000, and 1999 were $124,490, $126,071, and $121,990, respectively, which were equal to the required contributions for the year. NOTE 12 Property, Buildings, and Equipment On March 23, 2001, the State Board of Directors for Community Colleges of Arizona increased the capitalization rates for Community Colleges from $1,000 to $5,000, to be implemented on or before July 1, 2001. The District elected immediate implementation and has restated beginning balances for property, buildings, and equipment. This resulted in a total write-down of $1,871,773. COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 32 NOTE 12 Property, Buildings, and Equipment (concluded) The following is a summary of changes in property, buildings, and equipment during the fiscal year: Estimated costs to complete construction in progress at June 30, 2001, is $3,446,811. Expended for plant facilities additions in the Investment in Plant Fund include $220,190 of expenditures charged to current funds in fiscal year 2001. NOTE 13 Beginning Fund Balance Restated The July 1, 2000, fund balance of the Investment in Plant Fund does not agree to the balance reported in the financial statements at June 30, 2000, due to a write- down of assets due to increased capitalization rates as discussed in Note 12. In the June 30, 2000, financial statements, equipment and vehicles included $1,869,973 and $1,800 of assets valued at less than $5,000, respectively. Changes in Property, Buildings, and Equipment Balance July 1, 2000 Balance (restated) Additions Deductions June 30, 2001 Land $ 1,089,000 $ 1,089,000 Buildings 2,376,705 2,915,373 5,292,078 Improvements other than 18,461 18,461 buildings Equipment 1,151,140 347,971 116,828 1,382,283 Vehicles 21,790 21,790 Library collections 27,729 27,729 Construction in progress 3,899,835 14,224,660 18,124,495 Total property, buildings, and equipment $ 8,584,660 $ 17,488,004 $ 116,828 $ 25,955,836 Fund Balance, June 30, 2000, as previously reported $ 6,509,962 Less: Asset write-down 1,871,773 Fund Balance, July 1, 2001, as restated $ 4,638,189 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT (COCONINO COLLEGE) Notes to Financial Statements June 30, 2001 33 NOTE 14 - Implementation of GASB Statement No. 35 Beginning with fiscal year 2002, the District will prepare its external financial reports following the requirements of GASB Statement No. 35, Basic Financial Statements and Management s Discussion and Analysis for Public Colleges and Universities. Implementing this standard will significantly change the accounting principles and reporting format used by the District in future financial reports. 34 This page intentionally left blank. STATISTICAL SECTION 35 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT CURRENT FUNDS REVENUES BY SOURCE LAST TEN FISCAL YEARS 2000-01 1999-00 1998-99 Source of revenue Amount % Amount % Amount % Property taxes $ 3 ,861,021 31.7% $ 3 ,785,749 34.0% $ 3 ,499,824 34.1% State appropriations 3 ,130,800 25.7% 3 ,130,800 28.1% 3 ,130,800 30.5% Governmental grants and contracts 2 ,035,180 16.7% 1 ,578,612 14.2% 1 ,442,749 14.1% Private gifts, grants, and contracts 1 41,568 1.2% 2 9,567 0.3% 2 1,850 0.2% Tuition and fees 2 ,366,370 19.5% 2 ,013,005 18.1% 1 ,737,319 16.9% Investment income 5 24,791 4.3% 4 76,039 4.3% 3 43,049 3.3% Other 1 06,989 0.9% 1 09,744 1.0% 8 9,440 0.9% Total revenues $ 1 2,166,719 100.0% $ 1 1,123,516 100.0% $ 1 0,265,031 100.0% 1997-98 1996-97 1995-96 Source of revenue Amount % Amount % Amount % Property taxes $ 3 ,334,611 34.6% $ 3 ,020,591 33.9% $ 2 ,902,234 36.0% State appropriations 2 ,803,900 29.1% 2 ,411,500 27.0% 1 ,955,500 24.2% Governmental grants and contracts 1 ,445,559 15.0% 1 ,415,282 15.9% 1 ,387,581 17.2% Private gifts, grants, and contracts 1 45,039 1.5% 1 14,211 1.3% 6 8,459 0.9% Tuition and fees 1 ,595,778 16.6% 1 ,699,863 19.1% 1 ,520,775 18.8% Investment income 3 00,287 3.1% 2 39,034 2.7% 2 29,584 2.8% Other 1 3,845 0.1% 8,182 0.1% 6,037 0.1% Total revenues $ 9 ,639,019 100.0% $ 8 ,908,663 100.0% $ 8 ,070,170 100.0% 1994-95 1993-94 1992-93 Source of revenue Amount % Amount % Amount % Property taxes $ 2 ,758,731 40.7% $ 2 ,646,545 49.7% $ 2 ,454,104 54.1% State appropriations 1 ,584,600 23.4% 1 ,047,200 19.7% 1 ,000,900 22.1% Governmental grants and contracts 8 26,980 12.2% 2 72,745 5.1% 1 50,899 3.3% Private gifts, grants, and contracts 3 6,685 0.5% 3,000 0.1% 3,986 0.1% Tuition and fees 1 ,319,679 19.5% 1 ,184,454 22.2% 8 49,011 18.7% Investment income 2 11,804 3.1% 1 28,927 2.4% 7 3,075 1.6% Other 3 9,439 0.6% 44,466 0.8% 6,567 0.1% Total revenues $ 6 ,777,918 100.0% $ 5 ,327,337 100.0% $ 4 ,538,542 100.0% 1991-92 Source of revenue Amount % Property taxes $ 2 ,337,281 60.6% State appropriations 9 79,400 25.4% Governmental grants and contracts 9 8,843 2.6% Private gifts, grants, and contracts 1 0,490 0.3% Tuition and fees 4 03,810 10.5% Investment income 1 9,849 0.5% Other 4,532 0.1% Total revenues $ 3 ,854,205 100.0% Source: Annual Reports on Financial Statements for years presented. Note 1: Current Fund includes the General Fund, the Auxiliary Enterprises Fund, and the Restricted Fund. 36 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT CURRENT FUNDS EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS 2000-01 1999-00 1998-99 Function Amount % Amount % Amount % Instruction $ 3 ,834,511 34.5% $ 3 ,325,782 34.3% $ 2 ,894,818 33.0% Public service 1 48,276 1.3% 1 42,287 1.5% 1 43,511 1.6% Academic support 1 ,632,788 14.7% 1 ,162,479 12.0% 6 55,820 7.5% Student services 1 ,254,922 11.3% 1 ,138,132 11.7% 1 ,282,664 14.6% Institutional support (administration) 1 ,976,760 17.8% 1 ,703,198 17.5% 1 ,633,765 18.6% Operation and maintenance of plant 9 83,243 8.8% 9 48,800 9.8% 9 54,393 10.9% Scholarships and student support 1 ,248,955 11.2% 1 ,050,749 10.8% 9 75,194 11.1% Auxiliary enterprises expenditures 36,261 0.3% 2 22,544 2.2% 2 04,415 2.3% Provision for bad debts 7,584 0.1% 14,735 0.2% 3 0,267 0.4% Total expenditures $ 1 1,123,300 100.0% $ 9 ,708,706 100.0% $ 8 ,774,847 100.0% 1997-98 1996-97 1995-96 Function Amount % Amount % Amount % Instruction $ 2 ,744,702 32.5% $ 2 ,818,136 34.9% $ 2 ,646,417 34.4% Public service 1 44,122 1.7% 1 39,911 1.7% 1 43,870 1.9% Academic support 5 86,163 6.9% 6 17,147 7.6% 4 81,244 6.3% Student services 1 ,295,423 15.3% 1 ,207,415 15.0% 1 ,096,022 14.3% Institutional support (administration) 1 ,746,053 20.6% 1 ,486,561 18.4% 1 ,342,427 17.5% Operation and maintenance of plant 7 96,966 9.4% 7 25,586 9.0% 7 80,320 10.1% Scholarships and student support 9 91,689 11.7% 9 80,592 12.2% 9 84,396 12.8% Auxiliary enterprises expenditures 1 07,116 1.3% 4 7,823 0.6% 1 69,095 2.2% Provision for bad debts 5 0,117 0.6% 4 9,894 0.6% 4 0,189 0.5% Total expenditures $ 8 ,462,351 100.0% $ 8 ,073,065 100.0% $ 7 ,683,980 100.0% 1994-95 1993-94 1992-93 Function Amount % Amount % Amount % Instruction $ 2 ,083,208 35.2% $ 1 ,583,358 38.7% $ 1 ,250,852 37.9% Public service 1 30,039 2.2% 2 03,536 5.0% 1 69,431 5.1% Academic support 5 89,483 9.9% 5 67,613 13.8% 5 17,078 15.7% Student services 5 59,376 9.4% 3 72,518 9.1% 2 53,705 7.7% Institutional support (administration) 1 ,083,107 18.3% 7 32,416 17.9% 5 86,608 17.8% Operation and maintenance of plant 7 12,954 12.0% 5 62,776 13.7% 5 06,376 15.4% Scholarships and student support 7 15,278 12.1% 5 0,166 1.2% 1 0,306 0.3% Auxiliary enterprises expenditures 43,481 0.7% 2 0,014 0.5% 0.0% Provision for bad debts 1 0,438 0.2% 3,294 0.1% 3,633 0.1% Total expenditures $ 5 ,927,364 100.0% $ 4 ,095,691 100.0% $ 3 ,297,989 100.0% 1991-92 Function Amount % Instruction $ 9 13,679 42.1% Public service 9 8,316 4.5% Academic support 1 66,320 7.7% Student services 2 02,512 9.3% Institutional support (administration) 5 95,665 27.4% Operation and maintenance of plant 1 83,100 8.4% Scholarships and student support 1 0,176 0.5% Auxiliary enterprises expenditures 0.0% Provision for bad debts 1,827 0.1% Total expenditures $ 2 ,171,595 100.0% Source: Annual Reports on Financial Statements for years presented. Note 1: Current Fund includes the General Fund, the Auxiliary Enterprises Fund, and the Restricted Fund. 37 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT EXPENDITURE LIMITATION STATUTORY LIMIT TO BUDGETED EXPENDITURES LAST TEN FISCAL YEARS BUDGETED STATUTORY EXPENDITURES UNUSED FISCAL EXPENDITURE SUBJECT TO LEGAL YEAR LIMITATION 1 THE LIMITATION 2 LIMIT 3 1991-92 $ 3 ,895,615 $ 3 ,656,700 $ 2 38,915 1992-93 5 ,488,569 2,423,376 3 ,065,193 1993-94 5 ,918,104 2,732,135 3 ,185,969 1994-95 7,599,551 5,401,497 2,198,054 1995-96 8,358,792 6,890,003 1,468,789 1996-97 8,098,460 8,098,459 1 1997-98 8,606,136 8,606,135 1 1998-99 8,817,955 8,817,954 1 1999-00 8,584,609 8,584,608 1 2000-01 8,294,190 8,294,189 1 Source: District records. 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. Note 3: The unused legal limit may be carried forward to the extent it does not exceed fund balances. 38 RATIO OF RATIO OF TOTAL TAX DELINQUENT COLLECTIONS OUTSTANDING TAXES TO FISCAL TOTAL TOTAL TAX TO TOTAL DELINQUENT TOTAL YEAR TAX LEVY (1) COLLECTIONS TAX LEVY TAXES TAX LEVY 1991-92 $ 2,187,738 $ 2 ,062,784 94.29% $ 124,954 5.71% 1992-93 2,413,001 2 ,456,490 101.80% 122,568 5.08% 1993-94 2,644,101 2 ,657,405 100.50% 111,708 4.22% 1994-95 2,742,094 2 ,756,133 100.51% 114,306 4.17% 1995-96 2,907,547 2 ,877,602 98.97% 138,938 4.78% 1996-97 3,169,405 3 ,101,761 97.87% 138,757 4.38% 1997-98 3,237,396 3 ,162,511 97.69% 167,321 5.17% 1998-99 3,390,966 3 ,366,588 99.28% 160,600 4.74% 1999-00 5,392,349 5 ,343,807 99.10% 143,270 2.66% 2000-01 5,601,262 5 ,546,120 99.02% 177,683 3.17% Source: Coconino County Department of Finance, Coconino County Treasurer's Office, and District records. (1) Tax Levy is based on levy limits of the calendar year at June 30. (2) Cash basis; excludes payments in lieu of taxes. COCONINO COMMUNITY COLLEGE PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS 39 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT SECONDARY ASSESSED VALUE AND CURRENT MARKET VALUE OF ALL TAXABLE PROPERTY LAST TEN TAX YEARS (Dollars in Thousands) TOTAL ASSESSED TOTAL PROPERTY VALUES VALUE AS A TAX CURRENT PERCENT OF TOTAL YEAR ASSESSED MARKET MARKET VALUE 1992 6 88,104 4 ,244,198 16.2% 1993 7 04,577 4 ,523,115 15.6% 1994 7 35,069 4 ,862,390 15.1% 1995 7 63,229 5 ,162,803 14.8% 1996 7 80,215 5 ,814,529 13.4% 1997 8 45,386 6 ,215,438 13.6% 1998 8 87,556 6,462,245 13.7% 1999 9 39,915 6 ,700,526 14.0% 2000 1 ,004,869 7 ,158,212 14.0% 2001 1 ,062,082 7 ,535,970 14.1% Source: Coconino County Assessor's Office Note: Figures are not broken out between secured and unsecured. 40 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT PRIMARY PROPERTY TAX RATES, DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN TAX YEARS (Per $100 Assessed Valuation) Coconino County State County Tax Community of Coconino Education Year College District Arizona County* District 1992 0 .3589 0 .4700 0 .9785 2 .3600 1993 0 .3671 0 .4700 0 .9624 2 .3600 1994 0 .3706 0 .4700 0 .9432 2 .3600 1995 0 .3728 0 .4700 0 .9308 2 .3600 1996 0 .3784 - 0 .9137 2 .2000 1997 0 .3869 - 0 .8899 2 .2000 1998 0 .3949 - 0 .8733 2 .2000 1999 0 .4001 - 0 .8650 2 .1654 2000 0 .3973 - 0 .8556 2 .1265 2001 0 .4010 - 0 .8407 2 .0647 Cities or Fire Districts School Districts Tax Range Range Year From To From To 1992 0 .6644 1 .3880 1 .8491 8.3947 1993 0 .6644 1 .3880 2 .2336 7.6900 1994 0 .6644 1 .3880 2 .2370 7.6483 1995 0 .7326 1 .3880 1 .6118 7.6483 1996 0 .7326 1 .3880 1 .9114 6.8876 1997 0 .7326 1 .3880 2 .2947 6.6914 1998 0 .7326 1 .3526 2 .4607 7.8187 1999 0 .7326 1 .3138 1 .9307 7.3800 2000 0 .7326 1 .2573 1 .9949 6.4113 2001 0 .7326 1 .2573 1 .0763 7.8089 2001 Tax Rates (Special Districts) Flood Control ** 0 .0913 Forest Lakes Domestic Water 1.1730 Williams Facilities District 0.2138 Williams Hospital District 0.9211 Page Hospital District 0.7629 * Coconino County applies to the General, Library District and Fire District Assistance Funds. ** Flood Control District applies to all property outside the cities of Flagstaff, Page and Fredonia. Source: Arizona Tax Research Foundation 41 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT SECONDARY PROPERTY TAX RATES, DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN TAX YEARS (Per $100 Assessed Valuation) Coconino Coconino County Association for County Tax Community Vocation, Industry, Coconino Education Year College District and Technology County* District 1992 - - 0 .2030 0 .2030 1993 - - 0 .2026 - 1994 - - 0 .2190 - 1995 - - 0 .2164 - 1996 - - 0 .2248 - 1997 - - 0 .2269 - 1998 - - 0 .2361 - 1999 0 .1946 - 0 .2711 - 2000 0 .1751 - 0 .2780 - 2001 0 .1707 0 .0500 0 .2544 - Cities or Fire Districts School Districts Tax Range Range Year From To From To 1992 - 2 .5000 - 9.1611 1993 - 2 .6000 - 9.9260 1994 - 2 .6000 - 5.5190 1995 - 2 .6000 - 6.9003 1996 - 2 .6000 - 5.2463 1997 - 2 .6000 - 6.6700 1998 - 2 .6000 - 7.2869 1999 - 2 .6000 - 7.8837 2000 - 2 .6000 - 7.5159 2001 - 2 .5000 - 6 .6782 * Coconino County applies to the General, Library District and Fire District Assistance Funds. Source: Arizona Tax Research Foundation 42 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT COMPUTATION OF LEGAL DEBT MARGIN For Fiscal Year Ended June 30, 2001 Secondary Assessed Value of Real and Personal Property $ 1,062,082,181 Debt Limit = 15% of secondary assessed value 1 59,312,327 Amount of debt applicable to debt limit: General Obligation Bonded Debt $ 24,460,000 Total debt applicable to debt limit 2 4,460,000 Legal debt margin $ 134,852,327 Source: District Records 43 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT DIRECT AND OVERLAPPING DEBT General Obligation Bonds, June 30, 2001 Overlapping Municipality Direct: Coconino County Community College District $ 2 4,460,000 Overlapping: City of Flagstaff $ 1 0,300,000 City of Williams 2 1,000 Flagstaff Unified School District #1 6 2,355,000 Fredonia-Moccasin Unified School District #6 2 50,000 Grand Canyon Unified School District #4 7 55,000 Page Unified School District #8 1 6,460,000 Sedona-Oak Creek Unified School District #9 2 7,458,547 Tuba City Unified School District #15 1 ,325,000 Williams Unified School District #2 2 ,900,000 TOTAL $ 146,284,547 Source: Dain Rauscher Incorporated 44 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT TOP TEN PRINCIPAL TAXPAYERS June 30, 2001 PERCENTAGE OF ESTIMATED DISTRICT'S 2000 TYPE OF 2000 SECONDARY SECONDARY TAXPAYER BUSINESS ASSESSED VALUE ASSESSED VALUE Arizona Public Service Utility $ 6 2,945,082 6.26% City of Los Angeles Dept. of Water & Power Utility 35,815,645 3.56% Salt River Project Utility 3 3,186,626 3.30% Transwestern Pipeline Utility 1 8,999,401 1.89% Nevada Power Company Utility 1 8,615,216 1.85% Atchison Topeka, Burlington No. & Santa Fe Railway Company Railway 17,171,885 1.71% El Paso Natural Gas Utility 1 6,001,281 1.59% Tucson Electric Power Utility 1 5,514,476 1.54% U.S. West Communications Utility 1 2,313,540 1.23% W.L. Gore & Associates Manufacturer 1 1,182,806 1.11% Total Top Ten Taxpayers $ 2 41,745,958 24.06% Sources: Coconino County Assessor's Office Coconino County Treasurer's Office Note: All figures are based on secondary assessed valuation. 45 COLLEGE/CENTER 2000 1999 1998 1997 1996 Flagstaff 2,621 2,736 2,518 2,603 2,699 Page 309 286 226 203 252 Grand Canyon 16 40 15 32 26 Williams 42 38 28 14 21 Other 1 37 - 21 29 NAU 369 436 486 561 868 Total 3,358 3,573 3,273 3,434 3,895 COLLEGE/CENTER 1995 1994 1993 1992 1991 Flagstaff 2,417 2,200 1,728 1,369 736 Page 248 256 249 253 156 Grand Canyon 31 26 39 34 28 Williams 43 40 50 47 35 Other - 34 39 30 17 NAU 1,030 1,209 1,453 1,503 - Total 3,769 3,765 3,558 3,236 972 SEMESTER 2000-01 1999-00 1998-99 1997-98 1996-97 Fall/Spring Average 1 ,403.9 1,371.8 1,280.8 1,313.5 1,427.6 Summer 162.8 160.8 165.5 155.4 150.7 Short 85.6 71.3 45.3 27.8 9.2 Annual Total 1 ,652.3 1,603.9 1,491.6 1,496.7 1,587.5 SEMESTER 1995-96 1994-95 1993-94 1992-93 1991-92 Fall/Spring Average 1 ,369.3 1,240.4 1,047.3 894.8 437.2 Summer 146.0 146.0 138.6 115.6 38.2 Short 2.9 1.1 0.3 12.2 15.9 Annual Total 1 ,518.2 1,387.5 1,186.2 1,022.6 491.3 HISTORIC FTSE* FALL HISTORIC HEADCOUNT COCONINO COUNTY COMMUNITY COLLEGE DISTRICT HISTORIC ENROLLMENT LAST TEN FISCAL YEARS Source: District records Note 1: Headcount is unduplicated for the 45th day of Fall semesters only. * Full Time Student Equivalent (15 Credit Hours) 46 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT STUDENT ENROLLMENT DEMOGRAPHIC STATISTICS LAST TEN FALL SEMESTERS RESIDENCY FISCAL COUNTY OUT OF OUT OF YEAR RESIDENT COUNTY STATE FOREIGN 1991-92 91% 7% 2% 0% 1992-93 87% 10% 3% 0% 1993-94 84% 13% 3% 0% 1994-95 88% 9% 3% 0% 1995-96 87% 9% 4% 0% 1996-97 88% 9% 3% 0% 1997-98 82% 11% 7% 0% 1998-99 85% 8% 7% 0% 1999-00 86% 4% 10% 0% 2000-01 94% 5% 1% 0% ATTENDANCE GENDER FISCAL YEAR FT PT M F 1991-92 8% 92% 41% 59% 1992-93 13% 87% 40% 60% 1993-94 16% 84% 40% 60% 1994-95 12% 88% 39% 61% 1995-96 13% 87% 40% 60% 1996-97 13% 87% 41% 59% 1997-98 14% 86% 41% 59% 1998-99 14% 86% 41% 59% 1999-00 14% 86% 41% 59% 2000-01 16% 84% 42% 58% ETHNIC BACKGROUND FISCAL AMERICAN MEAN YEAR INDIAN ASIAN BLACK HISPANIC WHITE OTHER AGE 1991-92 12% 1% 1% 9% 77% 0% 32 1992-93 13% 2% 1% 9% 75% 0% 30 1993-94 12% 2% 2% 9% 75% 0% 30 1994-95 14% 2% 1% 10% 72% 1% 29 1995-96 15% 2% 1% 10% 70% 2% 29 1996-97 15% 2% 1% 10% 71% 1% 29 1997-98 15% 2% 1% 9% 72% 1% 29 1998-99 15% 1% 1% 9% 73% 1% 29 1999-00 15% 1% 2% 9% 71% 1% 29 2000-01 18% 2% 1% 9% 69% 1% 29 Source: District records Note: Coconino Community College students only - does not include CCC/NAU students. 47 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT ECONOMIC INDICATORS FOR COCONINO COUNTY JUNE 30, 2001 Coconino County Non-Farm Employment by Sector* Number of Percent of Sector Personnel Total Mining & Quarrying 75 0.13 Manufacturing 2,550 4.33 Construction 3,200 5.44 Transportation, Communication & Utilities 1,650 2.80 Trade 13,775 23.42 Finance, Insurance & Real Estate 1,300 2.21 Services & Miscellaneous 16,650 28.30 Government 19,625 33.36 Totals 58,825 100.00 % Total Unemployment Rate (6 Month Average) for Coconino County 5.60 % Arizona June 2001 Unemployment Rate 4.40 % United States June 2001 Unemployment Rate 4.50 % Source: Arizona Department of Economic Security (DES) * Employment by Sector statistics are based on the first six months of the 2001 annual a All Unemployment Rates are sesonally adjusted 48 COCONINO COUNTY COMMUNITY COLLEGE DISTRICT MISCELLANEOUS STATISTICS JUNE 30, 2001 Established: July 1, 1991 Geographical Location: North Central portion State of Arizona Altitude: Flagstaff Campus/District Offices 7,000 Feet Page Campus 4,300 Feet Population Projections 2001 1 25,820 Coconino County* 2005 1 35,595 2010 1 47,352 2015 1 58,753 2020 1 69,343 2025 1 79,555 Number of Faculty: Full-time. . . . . . 30 Part-time. . . . .180 Number of Administrative and Support Staff: 9 8 Average Class Size: 1 6 Source: District records * Arizona Department of Economic Security, 1997 Projections |
