Comprehensive annual financial report: fiscal year ended June 30, ... / Maricopa County Community College District

              Maricopa County Community College District
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2000
Table of Contents
Introductory Section
Message from the Chancellor .................................................................................................................................... 1
Letter of Transmittal ................................................................................................................................................... 4
Government Finance Officers Association Certificate of Achievement ...................................................................... 25
Organizational Chart .................................................................................................................................................. 26
Principal Officers ........................................................................................................................................................ 27
Vision, Mission and Values Statements ...................................................................................................................... 28
Financial Section
Independent Auditors’ Report ................................................................................................................................... 31
Basic Financial Statements:
Balance Sheet ..................................................................................................................................................... 32
Statement of Changes in Fund Balances ............................................................................................................. 34
Statement of Current Funds Revenues, Expenditures, and Other Changes ......................................................... 36
Notes to Financial Statements ............................................................................................................................. 37
Supplemental Information:
Current Unrestricted Funds - Schedule of Revenues, Expenditures, and Other Changes by College/Center ..... 52
Notes to Supplemental Information ..................................................................................................................... 54
Statistical Section
Current Funds Expenditures by Function - Last Ten Fiscal Years .............................................................................. 55
Current Funds Revenues by Source - Last Ten Fiscal Years ...................................................................................... 56
Expenditure Limitation - Statutory Limit to Budgeted Expenditures - Last Ten Fiscal Years ....................................... 57
Property Tax Levies and Collections - Last Ten Fiscal Years ...................................................................................... 58
Primary Assessed Value and Current Market Value of All Taxable Property - Last Ten Fiscal Years .......................... 59
Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years ................................................... 60
Principal Taxpayers .................................................................................................................................................... 61
Computation of Legal Debt Margin ............................................................................................................................ 62
Ratio of Net General Obligation Bonded Debt to Secondary Assessed Value and Net General Bonded
Debt Per Capita - Last Ten Fiscal Years ..................................................................................................................... 63
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Current Funds
Expenditures - Last Ten Fiscal Years ......................................................................................................................... 64
Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds ................................................... 65
Revenue Bond Coverage - Last Ten Fiscal Years ........................................................................................................ 66
Historic Enrollment - Last Ten Fiscal Years ................................................................................................................. 67
Student Enrollment Demographic Statistics - Last Ten Fiscal Years ........................................................................... 68
Historic Tuition and Fees - Last Ten Fiscal Years ....................................................................................................... 69
Maricopa County Property Values, Construction, and Bank Deposits - Last Ten Fiscal Years .................................. 70
Economic Indicators for the Metro Phoenix Area ....................................................................................................... 71
Top 25 Employers in Maricopa County ....................................................................................................................... 72
Miscellaneous Statistics ............................................................................................................................................ 73
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November 30, 2000
To the Citizens of the Maricopa County Community College District:
On July 1, 2000, I was honored to be
named Chancellor of the Maricopa
County Community College District
(MCCCD). I am proud to serve as
Chancellor at the start of a new millen-nium
that will see enormous change in
the need for higher education and the
methods by which it is delivered.
The Maricopa Community Colleges con-tinually
strive to make higher education
comprehensive, affordable, and acces-sible
- with an emphasis on future jobs
and student transfers to universities. With
more than 260,000 students enrolled an-nually,
the Maricopa Community Col-leges
are a national model for higher edu-cation.
Our ten individually accredited
colleges, two skill centers and numerous
education sites rank the District among
the nation’s largest multi-college education systems. MCCCD is the largest provider of
post-secondary education in Arizona and plays such a profound role in higher education that
more than 62 percent of juniors and seniors at Arizona State University have taken coursework
at a Maricopa Community College.
MCCCD offers more than 8,000 credit courses in academic and occupational areas
with students ranging in age from 13 to 90. The diversity of our student population is
one of our major strengths and reflects the egalitarian roots of community colleges in
Arizona. Students earn certification in a broad array of occupational courses in fields
such as welding, air conditioning repair, health care, automotive repair, and microchip
processing. Extensive partnerships with business and industry add impact and oppor-tunities
for thousands of students, and modern technology in the classroom and con-venient
distance learning formats add to students’ marketable skills. The Maricopa
Community Colleges are the largest provider of health care training in Arizona. Our
colleges train people to earn a living and, for many, it is the first opportunity for
success.
Fred Gaskin
Chancellor
Family of Colleges
Chandler-Gilbert
Estrella Mountain
GateWay
Glendale
Mesa
Paradise Valley
Phoenix College
Rio Salado
Scottsdale
South Mountain
Maricopa
Skill Centers
District Support
Services Center
2411 West 14th Street
Tempe, AZ 85281-6942
480-731-8100
480-731-8120 FAX
fred.gaskin@domail.maricopa.edu
t t 2tt
MCCCD believes that in every class there exists a potential author, doctor, painter, physicist, or
teacher — people who will transfer to four-year institutions and continue their academic journey.
We strive to employ top-notch faculty who specialize in their fields of interest and endeavor -
whether full-time residential faculty or part-time teachers. We also support the community in its
educational endeavors and will continue to work with the secondary education system to recruit
and train the best teachers for the future.
This fast-growing district strives to keep pace with the ever-expanding population of the past
decade providing increased space for students. Additionally, new and renovated buildings, labs,
classrooms, and high-tech centers have been designed and equipped to ensure success for all. As
the building program comes to an end, MCCCD is opening and dedicating several new centers and
campuses including South Mountain Community College at Guadalupe, Glendale Community
College North, and Mesa Community College at Red Mountain.
Working with and for the citizens of Maricopa County, the Maricopa Community Colleges will
continue to be a positive economic and educational force in our valley. Working together, we will
build for the future, meet the challenges facing today’s students, and prepare to meet the chal-lenges
of this new millennium.
Sincerely,
Fred Gaskin
Chancellor
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November 30, 2000
To the Citizens of the Maricopa County Community College District:
We are pleased to convey to you the Comprehensive Annual Financial Report (CAFR) of the
Maricopa County Community College District (Maricopa Colleges; the District), Phoenix, Arizona
for the fiscal year ended June 30, 2000 (FY 2000).
Responsibility for both the accuracy of the data and the completeness and fairness of the
presentation, including all disclosures, rests with Maricopa Colleges. 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
Maricopa Colleges. All disclosures necessary to enable the reader to gain an understanding of
Maricopa Colleges’ financial activities have been included.
The CAFR is presented in three sections: introductory, financial, and statistical. The introduc-tory
section includes a message from the Chancellor, this transmittal letter, Maricopa Colleges’
organizational chart, and a list of principal officers. The financial section includes the indepen-dent
auditors’ report, the basic financial statements, and supplemental information. The statisti-cal
section includes selected unaudited financial and demographic information, generally pre-sented
on a multi-year basis.
Organization and Administration
As a political subdivision of the State of Arizona, Maricopa Colleges is subject to statutory
authority of the State Board of Directors for Community Colleges of Arizona (the State Board).
Maricopa Colleges is operated and maintained by the Maricopa Colleges Governing Board (the
Board), which is comprised of five elected members representing each of the five precincts of
the district. These members are elected for six-year terms on a staggered basis.
Arizona Revised Statutes grant the Board authority to enforce the courses of study prescribed
by the State Board; appoint and employ administrators, faculty, and staff; award degrees,
certificates, and diplomas; and maintain general operations and service to the community for a
minimum of eight months per year. In addition, the Board is responsible for adopting the annual
budget, which is submitted to the State Board.
The State Board has approval authority over tuition and fee rates, acquisitions and construction
of real property, and issuance of debt. In addition to submitting an adopted annual budget, the
District must also submit a report of actual results to the State Board on an annual basis.
Maricopa Colleges serves educational needs throughout the Maricopa County area at various locations
managed by ten college presidents and one director. District-wide administrative and support services
are centralized and administered by the Chancellor, Vice Chancellor for Business Services, Vice
Chancellor for Educational and Student Development, Vice Chancellor for External Affairs, Vice
Chancellor for Information Technologies, and Vice Chancellor for Quality and Employee Development.
Fred Gaskin
Chancellor
Family of Colleges
Chandler-Gilbert
Estrella Mountain
GateWay
Glendale
Mesa
Paradise Valley
Phoenix College
Rio Salado
Scottsdale
South Mountain
Maricopa
Skill Centers
District Support
Services Center
2411 West 14th Street
Tempe, AZ 85281-6942
480-731-8100
480-731-8120 FAX
fred.gaskin@domail.maricopa.edu
t t 5tt
Entity
Maricopa Colleges is an independent reporting entity within the criteria established by generally accepted
accounting principles and the Governmental Accounting Standards Board (GASB). Although the District shares
the same geographic boundaries with Maricopa County, financial accountability over all activities related to
public community college education in Maricopa County is exercised by Maricopa Colleges. The financial
reporting entity consists of a primary reporting entity and its component units. Maricopa Colleges is a primary
government because it is a special purpose government that has a separately elected governing body, is legally
separate, and is fiscally independent of other state and local governments. Furthermore, there are no component
units combined with Maricopa Colleges for financial statement presentation purposes, and Maricopa Colleges is
not included in any other governmental financial reporting entity.
The Maricopa County Community College Foundation, Inc. is controlled by a separate board of directors;
therefore, its activity is not included in the financial statements of Maricopa Colleges.
History
The Maricopa County Community College District was established in 1962 under the provisions of legislation
enacted by the Arizona State Legislature in 1960. This legislation created the Arizona State Junior College
System and provided for the formation of junior college districts on a county basis throughout the state. At that
time there was one college in the system, Phoenix [Junior] College, founded in 1920. Today, Maricopa Colleges
consists of ten nationally accredited colleges, comprising the nation’s largest multi-college community college
system.
Service to the Community
Maricopa Colleges is also one of the nation’s most comprehensive two-year systems, offering affordable educa-tion
to more than 260,000 individuals year-round in both credit and special-interest/non-credit classes. Maricopa
Colleges is the largest single provider of post-secondary education in Arizona.
Composed of 10 colleges, two skill centers and numerous education sites, Maricopa Colleges strives to keep
pace with the ever-expanding population of Maricopa County. The county includes metropolitan Phoenix, rec-ognized
as one of the nation’s fastest-growing metropolitan areas. Such burgeoning population is reflected in the
District’s average growth rate of about 3%, which is predicted to continue.
To accommodate escalating demand for classes and services, Maricopa Colleges has undertaken an ambitious
building expansion program. Since 1995, land has been purchased in northeast Scottsdale in addition to land and
building acquisitions to expand campuses in Chandler-Gilbert, Mesa, Scottsdale, and Phoenix. Further expansion
includes education centers in the retirement communities of Sun Cities and Sun Lakes, the recently opened
Guadalupe Learning Center, and the Southwest Skill Center. Various sites located throughout the valley serve to
provide additional facilities in order to meet continued growth and demand. Expanded technology has been
incorporated throughout new buildings, labs, classrooms, and libraries/high-tech centers—all designed and equipped
to maximize student success.
Maricopa Colleges delivers effective teaching and learning through modern occupational programs and training,
extensive partnerships with business and industry, as well as through a vast array of classes that transfer to four-year
institutions. There are currently 8,034 credit-course offerings: 2,734 academic courses and 5,300 occupa-tional
courses included in 634 occupational programs. Students include those in traditional credit classes as well
as senior adults, business men and women, and others taking computer and internet training, job-readiness
training, and job-related certificate training. As indicated by racial category, the student enrollment data mirrors
the population of Maricopa County: 64% Anglo, 16% Hispanic, 4% African American, 3% Native American, 4%
Asian and 9% other.
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Service to the Community (continued)
Maricopa Colleges has become a major part of the community and continues to be a pipeline for the State’s four-year
universities. According to the Institutional Analysis and Data Administration Office of Arizona State Univer-sity,
15,361 Fall 1999 ASU main campus undergraduates had transferred Maricopa Colleges credits (representing
45.2% of the total ASU main campus undergraduates). For the University of Arizona in Tucson, over 4,000
undergraduate students transferred Maricopa Colleges credits.
A variety of direct services to the community are made available by Maricopa Colleges. These include: KJZZ-FM
Public Radio-91.5 (news/jazz); KBAQ-FM Public Radio-89.5 (classical); Sun Sounds Radio Reading Service
(for the visually-impaired); the Small Business Development Center statewide network; and a charter high school
with accelerated, career-focused programs offering concurrent college courses at a central city college campus.
Economic Condition and Outlook
Located in the south-central portion of the State of Arizona, Maricopa County (the County) qualifies as the major
economic, political, and population center in the State. The area includes the Greater Phoenix Metropolitan Area
(also known as the Valley of the Sun) which is comprised of Phoenix, Glendale, Mesa, Scottsdale, Paradise
Valley, Tempe, Peoria, Chandler, and Gilbert, plus other smaller cities and towns and all the unincorporated areas
of the County. The County measures 9,222 square miles, making it the 14th largest county in the United States.
For the past three decades, Maricopa County has been one of the most rapidly growing counties in the country in
terms of population, employment and personal income. According to the U.S. Census Bureau Population Divi-sion,
Maricopa County ranks first in the nation for population change since April 1, 1990, boasting a current
population of over 2.9 million and growing. More than half of Arizona’s population resides in Maricopa County,
and it ranks as the 4th highest populated and the fastest growing county in the nation.
Additionally, according to Newsweek magazine (March 29, 1999), the Phoenix metropolitan area is projected to
be the nation’s second fastest-growing job market, forecasting an estimated 1.5 million jobs over the next 25
years. The December 1999 issue of Inc. reports that Cognetics, Inc., a Cambridge, Massachusetts-based
research firm studying small businesses, ranked the greater Phoenix metropolitan area 1st among large metropoli-tan
areas in small business start-up and growth.
The main economic sectors in the County include services, trade, and manufacturing. In fact, Maricopa County
has evolved into a major center for high-tech manufacturing such as semiconductors, electronics and aerospace.
As such, it has been increasingly successful in attracting high-tech manufacturing employment, and developing a
high technology base in order to position itself to excel in the “new economy”. The March 22, 1999, Computer
World magazine named the County one of the top hiring locations in the nation for information technology jobs.
Further, according to the Milken Institute of Santa Monica, California, America’s High-Tech Economy: Growth,
Development, and Risks for Metropolitan Areas (July 13, 1999), the Phoenix metropolitan area was ranked
the 12th largest technology production center in the United States. The Arizona Department of Economic Security
and U.S. Department of Labor Statistics findings indicated that 1999 high-tech manufacturing employment was
41.8% of total manufacturing employment in Maricopa County, versus the United States average of 14.0%.
A solid support infrastructure plays an active role in shaping the State labor force. Three Arizona public univer-sities,
the statewide system of community colleges, multiple private colleges, universities and technical institutes,
business and industry members, and individual cities and towns are all important factors that serve as a network
of key components contributing to the dynamic performance of the Arizona workforce. As a network partici-pant,
Maricopa Colleges has become well known both locally and nationally as the largest provider of job training
in Arizona for new and expanding companies. The District enjoys ongoing success in forging partnerships with
business and industry, especially those with an acute need for technical abilities.
tt7tt
Economic Condition and Outlook (continued)
Commendable industrial partnerships in the Maricopa Colleges include automotive service, semiconductor manu-facturing,
hospitality, health care, and information technology/software industries. These programs, designed to
meet both immediate and future labor market demands, provide avenues for retraining and upgrading employee
skills. Additional contracts exist between educational institutions and companies for the design and implementa-tion
of job-specific learning experiences for employees. Opportunities for scholarships, internships, and hands-on
career development opportunities continue to expand.
The Maricopa Colleges training prospectus is circulated internationally. Providing cost-effective, customized
workforce training has distinguished Maricopa Colleges as an important resource to both local and relocating
businesses and industries. Because Maricopa Colleges is an integral part of the economic development of our
State and our local region, it is part of the portfolio for prospecting new industries that consider relocation to the
Valley of the Sun. Increasing competition for new industry includes domestic and foreign regions also seeking to
recruit companies.
Overview of National and State Economic Forecasts
Maricopa County has been an established growth area for virtually the entire 20th century and, according to the
Arizona Department of Economic Security Research Administration (RA), the Arizona economy is expected to
continue growing throughout the ensuing two-year period. In the most recent eight-year span, Maricopa County
population grew more than 25 percent, from 2.1 million to 2.9 million. During 1999 alone, County population grew
3.3%, while the general State population increased more slowly (at 2.5%). Concurrently, the national population
increased a mere 9/10s of 1%.
The age composition of the population is an important factor that directly affects State revenues and expendi-tures.
Studies show that older people tend to spend less money than younger people. The RA indicates that the
Maricopa County population, comprising 60% of the Arizona population, is continuing to age. Persons between
the ages of 45 and 65 account for the bulk of the County population growth; however, like the rest of the country,
the age pattern of the County population reflects State and national averages.
The RA expects the Arizona economy to add roughly 164,000 jobs over the next two years, which translates into
projected annual growth of 3.9% in 2000 and 3.6% in 2001. This follows two-year growth rates of 4.5% and
4.1%, continuing only a moderate pattern of slowing from the 1994 peak growth of 6.8%. Concurrently, Arizona
non-farm employment is expected to grow between two and three times the national rate.
The State of Arizona Joint Legislative Budget Committee (JLBC) indicates that the prospect for the national
economy remains good and is decidedly better than one year ago; further, the outlook for the Arizona economy is
similar to the U.S. forecast. In fact, the State is expected to grow even faster than the national average in areas
such as personal income, employment, and population. While the Arizona economy has been growing at a
moderately decreasing rate over the last four or five years, State forecasters anticipate this trend of decelerating
growth to continue for a time into the new millennium, but emphasize that underlying economic conditions in the
State will remain positive.
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Major Impacts
Management continually monitors federal and state legislative or regulatory initiatives and other external driving
forces, participates in studies to further understand their impacts to the Maricopa community and the District’s
future, and deploys efforts to institutionalize them when necessary. These external forces are described below.
Sales Tax for Education
A November 7, 2000, general election ballot initiative, approved by voters, allows the state to increase sales tax
by 6/10 of a percent with proceeds going to Arizona education, including school districts, universities, and community
colleges. Funds to community colleges, projected to begin in FY 2002, are required to be expended for workforce
development and job training purposes, including:
tt Partnerships between businesses and institutions
tt Additional faculty to improve and expand classroom instruction and course offerings
tt Technology, equipment, and technology infrastructure for advanced classroom and/or laboratory
teaching and learning
tt Student services such as assessment, advisement, and counseling
tt Purchase or lease of real property and construction, remodel, or repair of facilities
Based on historic state sales tax revenues, it is possible that the District could receive about $5 million in FY
2002, the first year of funding. This initiative also provides funding of $13 million due to community college
districts statewide under existing statute for matching capital outlay related to the construction of new cam-puses.
Of the $13 million, which is to be paid $1 million per year over a 13-year period, Maricopa Colleges is
owed $5 million and should begin receiving payment in FY 2004.
Governor’s Task Force on Higher Education
A high quality post-secondary educational system is critical to the future of Arizona. As the State continues to
grow, it is important to understand how the Arizona system of higher education can be better used to improve
quality of life and to plan accordingly.
Arizona Governor Jane D. Hull has identified the following as issues requiring clear responses:
tt How will we serve the higher education needs of Arizona until 2020?
tt How will we structure higher education to maximize Arizona’s economic development potential?
tt What kinds of facilities are needed and where?
tt How will we better use technology?
tt How will we fund Arizona’s higher education needs (operational and capital) until 2020?
Governor Hull has formed a task force comprised of university, community college, civic, and business leaders to
examine current trends, develop scenarios, and make recommendations for planning the future of education in
Arizona. While it is impossible to forecast every trend, the intention is to examine how best to position for the
future in order to strengthen the educational system, prepare citizens to participate fully in the new economy, and
minimize potential waste of limited resources.
t t 9tt
Major Impacts (continued)
The Governor’s Task Force on Higher Education will be a true collaborative endeavor using the talents of the
State’s higher education leadership. The task force will be jointly overseen by the Governor’s Office, the Board
of Regents, the State Board for Community Colleges, and members of the community.
Biennial Appropriations
For FY 2000 and FY 2001, the state instituted biennial appropriations whereby state aid funds are appropriated
once every two years. For Maricopa Colleges, this means that the appropriation in the first year of the biennium
is based on prior year actual full time student equivalents (FTSE) with year two of the appropriation based on an
estimated amount. Additionally, requests for initiative funds are submitted every two years for both years of the
biennium. In the second year of the biennium, adjustments may be made to the second year appropriation based
on actual FTSE realized in year one. This, in fact, did occur in FY 2001, although it is not clear that this will occur
during every cycle. The District will continue to annually adopt a budget for each fiscal year and state aid will
continue to be paid quarterly each fiscal year.
TRA97
Signed into law in August 1997, the Taxpayer Relief Act of 1997 (TRA97) included provisions for the Hope and
Lifetime Learning individual tax credits and imposed onerous information reporting requirements upon
institutions of higher education. The Hope tax credit targets eligible individuals enrolled in the first two years of
post-secondary education while the Lifetime Learning tax credit targets continuing education students. Both of
these target populations are served by Maricopa Colleges, which is required to report information to the Internal
Revenue Service (IRS) and students.
The impacts to the higher education community resulting from TRA97 include the cost of compliance with the
reporting requirements, uncertainty about issues and questions unresolved at the federal level, changes needed in
administrative systems to capture and provide data elements required to be reported for calendar year 2001, and
concerns about responding to inquiries from students and their parents. Efforts continue to address the impacts
and concerns. In the meantime, the IRS reduced some reporting requirements for 1998, 1999, and 2000.
Penalties will not be imposed upon institutions that make a good faith effort to comply with reporting require-ments.
The District has initiated a good faith effort during these years and continues to meet compliance requirements.
COSO - Maricopa Assessment Process (MAP)
Recent pronouncements, along with rapidly changing internal and external environments, have changed the way
management looks at internal controls and its responsibility for them. These pronouncements are the Committee
of Sponsoring Organizations of the Treadway Commission (COSO) 1992 report, Internal Control - Integrated
Framework and Statement on Auditing Standards (SAS) No. 78 - Consideration of Internal Control in a
Financial Statement Audit.
The COSO model, which Maricopa Colleges is adopting, defines five interrelated control components: control
environment, risk assessment, control activities, information and communication, and monitoring.
During FY 1999, Business Services staff began development of a plan to ensure the continuation of a sound
control environment, promote the understanding of COSO by all employees, and create an environment of
operational efficiency based on integrity and ethical values. Because rapidly changing economic, regulatory, and
operating conditions are constants in risk assessment, management is establishing mechanisms to identify the
risks associated with these changes. Once risks are identified, internal control policies and procedures will be
reviewed and revised as needed to effectively manage them. Because change is a constant in risk factors,
internal controls must not be static.
tt10tt
Major Impacts (continued)
In the fall of 1999, the District Governing Board directed the formation of the Maricopa Risk Assessment
Process (MRAP) Advisory Group. The goal of MRAP is to embed ongoing risk assessment into the culture of
the District. Initially, the MRAP will focus on the two most significant components of the COSO model: control
environment and risk assessment. Remaining components of the COSO model will be addressed in future years.
Two initiatives resulting from the MRAP project already are underway. The first is the development of a
District-wide ethics statement and the development of appropriate training and education. The second is the
development of a process for reviewing the financial and operational condition of programs and services to
determine the appropriateness of funding levels and to achieve outcomes that advance goals and mandates.
New Reporting Model
In November 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 35, “Basic
Financial Statements - and Management’s Discussion and Analysis - for Public Colleges and Universities”. The
new standard is designed to provide financial information that is responsive to the needs of primary users of
college and university general purpose external financial reports (the citizenry, legislative and oversight bodies,
and investors and creditors).
The effect of the proposed statement is a significant change to the financial reporting model currently used by
the District and the majority of public higher education institutions. Major changes include the display format of
financial information, depreciation accounting, cash flow reporting, and certain comparative information to be
included within a narrative discussion and analysis by management. The effective date of implementation of the
new standards for the District is FY 2002.
Major Initiatives
In addition to developing responses to major impacts from external forces as previously described, the District
continues to enhance its responsiveness to internal issues, as reflected in the following initiatives.
Maricopa Governance
In September 1996, the Maricopa Colleges Governing Board revised its internal governance model following
the concept of Maricopa Governance. This model stresses the Board’s responsibility for leading the Maricopa
Colleges while serving as a connecting point to our communities. Four types of policies define the new model:
tt Executive Boundaries Policies which provide the prudent and ethical boundaries of acceptable
Chancellor acts, practices, and circumstances.
tt Governance Process Policies which clarify the Board’s own job and rules, including how it
plans to interact with others.
tt Board-Staff Relationship Policies which describe the relationship and accountability linkage
(usually through the Chancellor).
tt Goals Policies which determine what benefits will occur, for which
constituencies, and at what cost. These become prioritized and reflected
in the annual budget.
Maricopa Governance provides Maricopa Colleges more effective and efficient governance by focusing on
goals rather than means. To this end, the board recently adopted a planning calendar that better aligns strategic
planning activities and budget development. Additionally, the first annual report of measures of adopted goals
recently was released. Follow-up is occurring and this data and related analyses will be used to help set
prioritized goals in the future.
tt11tt
Major Initiatives (continued)
Last, an important aspect of Maricopa Governance is the Board’s regular monitoring for compliance with the
above policies. Numerous reports are submitted at regular intervals to measure and demonstrate compliance.
Capital Development
Educational needs of a growing Maricopa County population continue to be addressed by a $385.8 million capital
development program approved by voter referendum in November 1994. These capital funds enable the Maricopa
Colleges to expand facilities and technology in order to meet current and future demand for classes and educa-tional
services while also improving campus security and energy conservation. At fiscal year-end, the program
was about 73% complete, providing nearly a million square feet of new facilities. It is projected that the final
phase of the seven-year capital development program will be funded in April 2001 through the issuance of
$52.545 million in remaining general obligation bond authorization. The District is exploring alternative financing
options, including the feasibility of a future voter referendum, to meet ongoing capital needs for 2002 and beyond.
Currently, only four of the ten colleges within the District have performing arts centers on campus. These four
facilities are in need of remodeling, and five other colleges have been identified as having a need for performing
arts centers. In FY 1998, the District first approved funding that would initiate the development of the new
performing arts center at Chandler-Gilbert Community College, in response to growing enrollments in the music,
theatre, and dance curricula as well as demand from the community. To fund the construction of this center and
two others at South Mountain and Paradise Valley Community Colleges, student fees were increased $.50 per
credit hour in FY 1998 and two subsequent fiscal years in anticipation of revenue bond debt issues secured by a
general pledge of tuition and fees. Remaining new facility and remodel needs may also be funded by future
revenue bond issues, pending the impact on student fees.
Financial Stability
Financial stability is the cornerstone upon which each fiscal year budget is developed and adopted. Goals for
financial stability enable Maricopa Colleges to manage revenue shortfalls and cash flows to ensure continued
operations, and to provide for unforeseen contingencies without impairing the level of quality service needed to
respond to our customers. To this end, a Fiscal Management Policy approved by the Board guides the Maricopa
Colleges’ budgeting process and requires the following:
tt The financial stability of Maricopa Colleges will be maintained in perpetuity.
tt Financial stability will be measured by actual June 30 General Fund fund balance as a
percentage of General Fund revenues.
tt The measure of stability will be maintained at between 8% and 10%.
tt Only the Board may authorize a different first priority for budget development and adoption.
Since establishing this practice as policy in 1994, Maricopa Colleges has successfully reached this goal each
year. For the fiscal year ended June 30, 2000, this resulted in a fund balance of 24.4% of revenues. Fund
balance in excess of the minimum required by the financial stability policy provides Maricopa Colleges the ability
to designate $45.6 million of fund balance to meet annual operational challenges with one-time budget allocations.
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Major Initiatives (continued)
Strategic Planning
During recent years, the Maricopa Community Colleges’ decision-makers at all levels of the organization have
examined ‘strategic directions’, ‘strategic priorities’, and a variety of seemingly independent ‘strategic plans’.
The Governing Board identified the need for a systemic District-wide Strategic Plan and charged the Chancellor
and the Chancellor’s Executive Council to lead the project.
Maricopa Colleges contends that the responsibility for continuous strategic planning rests at all levels of the
organization, and, when integrated, results in greater collaboration. Representatives from throughout the District
have formed a Strategic Planning Task Force to develop a District-wide Maricopa Plan. The Task Force is using
the values determined by the MCCCD Governing Board as Maricopans’ core values. The corresponding
outcomes are anticipated to reflect the MCCCD values, mission, goals, and vision, though these may be continu-ously
reevaluated during the on-going planning process.
Planning is already under way. Much of what the strategic planning process uses is already available through
existing and ongoing annual internal and external environmental scans and other performance criteria. It is
expected that a district-wide plan will be completed by the spring of 2002, which will reflect the changing
Maricopa culture and will be linked to our budgeting processes.
Advisement
In FYs 2000 and 2001, the Governing Board prioritized improved advisement as a goal for the District. Conse-quently,
it allocated funds to support this goal.
First, $423,500 was allocated to support the Course Applicability System (CAS). This is a district-wide systemic
initiative that allows the colleges a high degree of flexibility in the use of technology to enhance advising and
university articulation transfer.
CAS, a computerized system developed by Miami University in Oxford, Ohio, is currently implemented by the
Arizona public higher education institutions. One of the main CAS objectives is to assist students in making
appropriate decisions regarding potential transfer of coursework by providing direct on-line access to informa-tion
supporting course acceptability and applicability among institutions.
Through the use of CAS, it is anticipated that students will be empowered to determine how their Maricopa
Colleges courses will transfer and apply to university degrees; that academic advisors will be provided an on-line
advisement tool with continually updated information; and that administrative systems that support the reporting
and student tracking needs of faculty, advisors, transfer articulation staff, and curriculum developers among
others will be enhanced.
In the FY 2000-2001 budget, $985,000 was allocated to add advisors, counselors, and tutors. Increased staffing
is expected to provide students with more opportunities for advising, counseling, and tutoring, enabling students
to make better choices to improve their learning.
tt13tt
Major Initiatives (continued)
Primary Challenges
While maintaining financial stability, the primary challenges of Maricopa Colleges include:
tt Linking Board goals to meaningful measures, then translating the analysis of this
data into operational objectives and budget requirements.
The goals adopted by the District Governing Board provide strategic direction to the District. Maricopa Colleges
must continue to establish performance measures for these goals and to assess budget requirements to better
address them. The District is examining various methods that: (1) provide more logic to the strategic planning
process and link the District Office and college plans; (2) provide a framework for the colleges to determine
their efficiency and effectiveness; and (3) provide funding approaches that link the results of data analysis,
planning, and goal setting to resource allocations.
tt Continuing to increase funding and allocations to meet planned operating costs as
the capital development program advances and as enrollment continues to grow.
The District has maintained its commitment to funding the operational costs of the capital development program.
Some costs still are funded through a reserve that must be supplanted with permanent resources.
tt Continuing to fund enrollment growth.
Enrollment increases steadily each year, generally at about 3%. The District should maintain its commitment to
funding its tuition and fee rebate program to help fund the costs of adding classes when enrollment increases.
This will help the District maintain its mission to provide accessible learning opportunities.
tt Assessing and adjusting to potential changes in state appropriations due to the
implementation of biennial budgeting.
FY 2000 was the first year that the State budgeted community colleges on a biennial basis. The impact on
appropriation requires continual assessment and the District may need to make adjustments in its planning and
operating practices to address these impacts.
tt Continuing to enhance flexibility and maximize use of resources in the budgeting
process, and improving collaboration and cooperation among colleges while
promoting healthy competition.
A District Financial Advisory Council is called upon to review strategic plans related to the budgeting process in
accordance with the strategic goals of the Maricopa Colleges and other priorities established by the Board.
Such actions demonstrate Maricopa Colleges’ dedication to endorse and execute effective and efficient use of
all resources—financial, human, physical plant, and technological.
tt14tt
Major Initiatives (continued)
tt Continuing to provide for inflationary and business cost increases.
Prior year inflationary increases have eroded Maricopa Colleges’ available resources. Allocation of some funds
to help cover inflation continues to be a priority in most budget development cycles. Continued development of
annual 3-year financial plans, or the recently issued ten-year financial plan, is intended to anticipate and provide
a mechanism for planning for such events.
tt Installing, developing, and maintaining new software systems.
New information systems have been implemented over the past 5 years, providing the district with more information
and analytic resources. However, in addition to the significant initial effort and cost to implement these systems,
they require significant additional programming and functional staff to facilitate system upgrades, testing,
development and maintenance. For example:
tt Continued upgrades for Oracle Government Financials
tt Continued upgrades and development for PeopleSoft Human Resource
Management System
tt Development and/or implementation of a student administration package
to integrate with the Learner Centered System and Student Information
System
tt Continued upgrades and development of the newly implemented budget
development system
tt Single-student database allowing information sharing among all Maricopa
Colleges
tt Document imaging system to be implemented in the future
tt Expansion of the Maricopa Electronic Messaging System (MEMO)
tt Web portal access for student and community use
tt15tt
Financial Information
The Maricopa Colleges’ responsibilities for stewardship, safeguarding of assets, and accountability to resource
providers are fulfilled by effective management of resources through internal control, budgetary controls, cash
management, and financial reporting.
Internal Control
Management is responsible for establishing and maintaining internal controls designed to ensure that assets are
protected from loss, theft, or misuse, and to ensure that 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–but not absolute–assurance that these objectives are met. The concept of
reasonable assurance recognizes that: (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.
The District Internal Auditor reports through the Vice Chancellor for Business Services to the Audit and Finance
Committee which consists of two Board members, the Chancellor, the five Vice Chancellors, a college President,
and the Director of the Skill Center. This person periodically reviews, reports on, and recommends improvements
for internal controls in operational and financial areas.
The annual financial audit is conducted by the Office of the Auditor General, State of Arizona, and tests are
made to determine the adequacy of the internal controls and to determine that Maricopa Colleges has complied
with applicable laws and regulations. Results of the fiscal year ended June 30, 2000, tests will be issued in a
separate report at a later date.
Budgetary Controls
Maricopa Colleges maintains budgetary controls in the form of line-item budgets and budget transfer restrictions
by function and object. Budgetary controls ensure compliance with the annual budget adopted by the Board.
The legal level of budgetary control is by summary line item of Current Funds (General, Auxiliary Enterprises,
and Restricted) and Plant Funds.
Maricopa Colleges complies with state statute requiring that a report be filed annually with the State Board as
to Maricopa Colleges’ adopted budget for Current and Plant Funds. Maricopa Colleges also demonstrates
budgetary compliance with the issuance of an annual budgeted expenditure limitation report audited by the
Office of the Auditor General, State of Arizona. The expenditure limitation calculation determines the maximum
allowable expenditure budget capacity supported by state appropriations and property tax levies for Current and
Plant Funds.
Maricopa Colleges also maintains an encumbrance accounting system as a budgetary control. Open
encumbrances are not reported as reservations of fund balance at year end, but are liquidated (lapse at year
end) and reestablished at the beginning of the next fiscal year as an obligation against that year’s adopted
budget.
Schedules of budget to actual data for General Fund revenues and expenditures for the fiscal year ended
June 30, 2000, follow:
tt16tt
General Fund: Budget to Actual
Fiscal Year Ended June 30, 2000
(Dollars in Thousands)
Percent Variance
Revised Of Favorable
Budget Actual Total (Unfavorable)
Revenues and Other Sources
Property taxes $176,050 $174,909 58.3% $( 1,141 )
State appropriations 46,313 44,805 15.0 (1,508 )
Tuition and fees 55,108 54,383 18.1 ( 725 )
Investment income 2,800 2,992 1.0 192
Other 306 324 0.1 18
Transfers-in 3,393 3,266 1.1 ( 127 )
Budget allocation from 6/30/99
fund balance carry forward 19,266 19,266 6.4 -
Total revenues and other sources $303,236 $299,945 100.0% $(3,291 )
Expenditures and Transfers
By Function
Instruction $145,540 $138,891 50.3% $ 6,649
Public service 221 211 0.1 10
Academic support 34,600 31,873 11.5 2,727
Student services 21,380 20,798 7.5 582
Institutional support 73,524 55,306 20.0 18,218
Operation and maintenance of plant 24,368 23,579 8.5 789
Transfers-out 3,603 5,736 2.1 (2,133 )
Total expenditures and transfers $303,236 $276,394 100.0% $26,842
By Object
Personal services $194,605 $192,005 69.5% $ 2,600
Employee benefits 32,072 30,536 11.0 1,536
Contractual services 23,138 21,953 7.9 1,185
Supplies, materials, and parts 8,213 7,653 2.8 560
Current fixed charges 4,571 3,887 1.4 684
Communications and utilities 10,671 10,240 3.7 431
Other 26,363 4,384 1.6 21,979
Transfers-out 3,603 5,736 2.1 (2,133 )
Total expenditures and transfers $303,236 $276,394 100.0% $26,842
tt17tt
Financial Information (continued)
Cash Management
In terms of the overall investment of available cash, Maricopa Colleges is governed by the Arizona Revised
Statutes relating to investment of public funds. The fiduciary responsibility for such investments is entrusted to
the Board and facilitated through the Audit and Finance Committee.
Daily, weekly, monthly, and annual cash flows of revenues and expenditures are projected and monitored to
ensure that resources are available to meet operational needs for current and future years. The fungible nature
of Maricopa Colleges’ funds allows for cash from all funds to be consolidated in bank accounts from which
obligations of all funds are paid. Earnings potential is maximized through daily investment of bank balances.
Maricopa Colleges’ investment policy requires statutory compliance, safety of principal, and liquidity as priority
criteria over yield for all investment decisions.
General Fund and Retirement of Indebtedness Fund monies are on deposit with the County Treasurer and are
invested on a pooled basis with interest prorated back to Maricopa Colleges. Amounts available for General,
Current Auxiliary Enterprises, Current Restricted, Loan, Endowment, Unexpended Plant (including general
obligation bond proceeds) and Agency Funds are invested by Maricopa Colleges in a prudent, conservative, and
secure manner for the highest yield as prescribed by Maricopa Colleges’ investment policy and Arizona Revised
Statutes.
Financial Reporting
An automated financial record system captures all financial transactions and provides data for the preparation
of the Maricopa Colleges’ Comprehensive Annual Financial Report (CAFR), including the audited financial
statements. These statements present information on the financial position of Maricopa Colleges and whether
resources were adequate to cover the costs of providing services during the reporting period. The Maricopa
Colleges’ award-winning CAFR is distributed to the Board and executive management, the state legislature,
federal and state agencies, bond rating agencies, and financial institutions as well as others throughout the
general public. Internal management reports, customized to meet the information and decision-making needs at
all levels of the organization, aid in the management of allocated resources.
Supplemental Information
The supplemental schedule, “Current Unrestricted Funds – Schedule of Revenues, Expenditures, and Other
Changes by College/Center” is in accordance with the terms of a Memorandum of Understanding (MOU)
between Maricopa Colleges and the North Central Association of Colleges and Schools Commission on Institutions
of Higher Education (NCA). The MOU outlines an appropriate pattern of evidence to be made available by
Maricopa Colleges for purposes of meeting certain NCA Criteria for Accreditation related to financial resources/
uses and other assurances. This schedule presents current unrestricted revenues and expenditures for each
college/center.
t t 18tt
Current Funds
Current Funds include the General Fund, the Auxiliary Enterprises Fund, and the Restricted Fund.
Fund Balances
The result of FY 2000 financial activities of the Current Funds is a combined fund balance of $100.6 million, an
increase of over $7 million from the previous fiscal year’s ending fund balances. The combined Current Fund
unrestricted and restricted fund balances amount to 28% of total Current Fund expenditures and mandatory
transfers and provide approximately 72 days of expenditure coverage. The ratio of fund balance to expenditures
and the days of expenditure coverage are indicators of: (1) the existence of a buffer of protection from unforeseen
contingencies, and (2) Maricopa Colleges’ ability to pay for current operating expenditures without entering the
short term debt market. These results are consistent with Maricopa Colleges’ financial planning goals.
District Functions
Consistent with its mission to provide effective learning environments, instruction is the primary function of
Maricopa Colleges. Major funding sources supporting all Maricopa Colleges’ functions include property
taxes, state appropriations, and tuition and fees. Maricopa Colleges exercises primary and secondary property
tax levy authority to generate revenues for operating, capital equipment, and debt retirement purposes. Although
total revenues have been increasing, in recent years the mix of funding sources has gradually been shifting.
Over the past ten years, tuition and fees as a percent of total revenues has risen while the proportionate share
of property taxes and state appropriations has declined.
The following schedule presents a summary of changes in Current Funds revenues for the fiscal year ended
June 30, 2000, and the amount and percentage of these changes in relation to the prior year revenues.
Current Funds Revenues
Fiscal Year Ended June 30, 2000
(Dollars in Thousands)
Percent
Percent Change Change
Revenues Amount of Total from 1999 from 1999
Property taxes $174,909 46.7% $12,286 7.6%
State appropriations 45,138 12.1 3,580 8.6
Government grants and contracts 38,739 10.3 (4,705) (10.8)
Private gifts, grants, and contracts 12,722 3.4 2,775 27.9
Tuition and fees 88,181 23.6 7,527 9.3
Investment income/other 14,755 3.9 1,098 8.0
Total revenues $374,444 100.0% $22,561 6.4%
The primary reasons for the increase in Current Funds revenues are increases in primary tax levy assessments,
increases in private gifts, grants and contracts, and increases in tuition and fees.
t t 19tt
Current Funds (continued)
The following schedule presents a summary of changes in Current Funds expenditures for the fiscal year ended
June 30, 2000, and the amount and percentage of these changes in relation to prior-year expenditures:
Current Funds Expenditures
Fiscal Year Ended June 30, 2000
(Dollars in Thousands)
Percent
Percent Change Change
Expenditures (by Function) Amount of Total from 1999 from 1999
Instruction $149,746 41.5% $ 8,652 6.1%
Public service 10,835 3.0 (2,953) (21.4)
Academic support 32,664 9.1 3,458 11.8
Student services 49,549 13.7 78 0.1
Institutional support 57,369 15.9 6,877 13.6
Operation and maintenance of plant 24,371 6.8 2,777 12.8
Scholarships 4,297 1.2 887 26.0
Auxiliary enterprises expenditures 31,724 8.8 2,224 7.5
Total expenditures $360,555 100.0% $22,000 6.5%
Although Current Funds expenditures rose overall by 6.5% when compared to the prior fiscal year, Maricopa
Colleges’ financial stability goals were maintained with an increase in Current Funds fund balances of over $7
million. Increases in the areas of instruction, academic support, student services, and institutional support are in
keeping with Maricopa Colleges’ mission of providing effective teaching and learning. Increases in operation
and maintenance of plant are related to increased square footage of facilities resulting from progress of the
capital development program. Increases to scholarships and auxiliary enterprises expenditures are related to an
increasing student population.
The charts on the following page demonstrate sources and uses of Current Funds dollars.
t t 20 tt
Total Current Funds
Expenditures by Function
FY 2000
(Dollars in Millions)
Auxiliary Enterprises
Expenditures
$32
Instruction
$150
Public Service
$11
Student Services
$50
Academic Support
$33
Institutional Support
$57
Operation and
Maintenance of Plant
$24
Scholarships
$4
Total Expenditures: $361 Million
Total Current Funds
Revenues by Source
FY 2000
(Dollars in Millions)
Tuition & Fees
$88
Private Gifts,
Grants & Contracts
$12
Property Taxes
$175
Investment Income &
Other
$15
State Appropriations
$45
Government
Grants & Contracts
$39
Total Revenues: $374 Million
tt21tt
Auxiliary Enterprises Fund
The Auxiliary Enterprises Fund accounts for transactions of substantially self-supporting auxiliary activities that
perform a service primarily for students, faculty and staff, and support educational activities.
Auxiliary Enterprises Fund
Major Revenue and Expenditure Categories
Fiscal Year Ended June 30, 2000
(Dollars in Thousands)
Percent
Revenues Amount of Total
Tuition and course fees $ 9,422 23.7%
Activity fees 19,587 49.2
Other fees and charges 563 1.4
Subtotal tuition and fees 29,572 74.3
Investment income 3,313 8.3
Bookstore commissions 1,706 4.3
Food service sales 568 1.4
Other 4,676 11.7
Total revenues $39,835 100.0%
Expenditures (by Object)
Salaries and benefits $13,411 42.3%
Contractual services 4,854 15.3
Supplies and materials 3,759 11.8
Other 9,700 30.6
Total expenditures 31,724 100.0%
Excess of revenues over expenditures $ 8,111
Agency Fund
The Agency Fund accounts for resources held by Maricopa Colleges as the custodian or fiscal agent for
students, faculty, staff, and other organizations.
tt22tt
Debt Administration
As of June 30, 2000, Maricopa Colleges’ outstanding long-term debt issues and debt services requirements to
maturity were as follows:
Debt Service Requirements To Maturity
(Dollars in Thousands)
G.O. Revenue Capital
Year ending June 30: Bonds Bonds Leases Total
2001 $ 26,878 $ 2,724 $ 79 $ 29,681
2002 29,826 2,724 76 32,626
2003 20,296 2,714 61 23,071
Thereafter 324,185 11,412 14 335,611
Total debt service requirements 401,185 19,574 230 420,989
Less interest 118,150 3,219 32 121,401
Principal balance at June 30, 2000 $ 283,035 $16,355 $198 $299,588
Moody’s Investors Service and Standard & Poors, bond rating agencies, have rated the Maricopa Colleges’
general obligation bond debt issues as Aa1 and AA, respectively, and the Colleges’ revenue bond debt issues as
Aa2 and AA, respectively. These ratings indicate the high quality and strong credit attributes of Maricopa
Colleges’obligations.
On February 7, 1995, Maricopa Colleges issued $104,750,000 of general obligation bonds; on June 10, 1997,
$124,250,000 were issued; and on February 23, 1999, $104,250,000 were issued. In April 1998, Maricopa
Colleges issued $65,145,000 in general obligation bonds to advance refund portions of the outstanding general
obligation bonds issued in 1995. Of the $385,799,000 authorized by the voters of Maricopa County, $52,549,000
remained unissued at June 30, 2000. General obligation bond debt is funded from secondary property tax levies
collected by the Maricopa County Treasurer.
In May 1998, Maricopa Colleges issued $6,000,000 of revenue bonds to construct, furnish and equip a performing
arts center. Repayments of revenue bond debt is administered by the trust department of a local bank. Revenue
bond debt is repaid from student fee revenues and interest earnings on investments held by the trustee. Revenue
bond proceeds and required reserves are deposited into irrevocable trust accounts pursuant to the bond
indentures.
Capital lease obligations consist of direct and third party lease agreements for the acquisition of $406,094 of
capital assets. Terms of the leases range from three to five years, with interest rates ranging from 5.95 to 18.31
percent. Capital lease payments are generally funded from annual state appropriations.
Property, Buildings, and Equipment
Maricopa Colleges’ property, buildings, and equipment are accounted for in the Investment in Plant Fund. As of
June 30, 2000, the fixed assets of Maricopa Colleges were approximately $530 million. Depreciation is not
recognized in this fund.
tt23tt
Risk Management
In order to transfer the risk of financial losses, Maricopa Colleges maintains a full complement of insurance
coverages, in accordance with (and usually in excess of) requirements established by the State Board:
tt Worker’s compensation: The District is self-insured for losses related to claims for
bodily injury by accident or occupational disease below the
level of insurance provided by a commercial policy.
tt Liability coverage: The District is covered by an excess school liability policy,
which includes general liability, errors and omissions,
automobile liability, and uninsured/underinsured motorist
coverage. Policy limits total $40 million and Maricopa Colleges
has a self-insured retention (SIR) of $100,000 per occurrence.
tt Property coverage: The District is covered by a blanket real and business personal
property policy, which includes business income and extra
expense. The policy also covers equipment breakdown/boiler
and machinery. The SIR is $25,000 per occurrence.
tt Crime coverage: The District has policies, which cover public dishonesty;
forgery or alteration; computer fraud; theft, disappearance
and destruction; and counterfeiting. The SIR ranges from $0
to $10,000.
Maricopa Colleges has a full-time employee dedicated to risk management issues focusing on insurance, claims
administration, and risk control.
Independent Audit
Audit services are provided to Maricopa County Community College District by the Office of the Auditor
General, State of Arizona. Arizona Revised Statutes require an annual audit of Maricopa Colleges’ financial
statements. This requirement has been complied with and the Independent Auditors’ Report is included in this
document. The auditors’ opinion is unqualified.
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 Maricopa County Community College District for its
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 1999. The Certificate of
Achievement is a prestigious national award recognizing conformance with the highest standards for preparation
of state and local government finance reports.
In order to be awarded a Certificate of Achievement, a college or university unit must publish an easily
readable and efficiently organized Comprehensive Annual Financial Report with contents conforming to program
standards. Such CAFR reports must satisfy both generally accepted accounting principles and applicable legal
regulations.
A Certificate of Achievement is valid for a period of one year only. Maricopa County Community College
District has received a Certificate of Achievement for the last nine consecutive years. Management believes
the current report continues to conform to the Certificate of Achievement program requirements and is submitting
it to the GFOA.
tt24tt
Acknowledgment
We wish to thank the members of the Board for their interest and support in planning and conducting the
financial operations of the Maricopa Colleges in a highly responsible and progressive manner. The preparation
of this report on a timely basis could not have been accomplished without the efficient and dedicated services of
the entire staff of the Division of Business Services. Appreciation is expressed to the Office of the Auditor
General for timely completion of the audit.
Respectfully submitted,
Rufus Glasper, Ph.D., CPA, CGFM Marilyn A. Anderson, CPA, CGFM
Vice Chancellor for Business Services Director of Finance/Controller
Chancellor
Citizens of Maricopa County
Vice Chancellor
Business Services
President
Chandler-
Gilbert
Community
College
Director
Maricopa
Skill
Centers
Maricopa County Community College District
Organizational Chart *
Governing Board
Elected Officials
President
Scottsdale
Community
College
President
Rio Salado
Community
College
President
South
Mountain
Community
College
President
Paradise
Valley
Community
College
President
GateWay
Community
College
President
Estrella
Mountain
Community
College
President
Glendale
Community
College
President
Mesa
Community
College
President
Phoenix
College
Vice Chancellor
Quality & Employee
Development
Vice Chancellor
Information
Technologies
Vice Chancellor
External Affairs
Vice Chancellor
Educational & Student
Development
* Effective July 1, 2000
tt 26 tt
Maricopa County Community College District
Principal Officers
Governing Board
Mr. Gene Eastin, President
Dr. Donald R. Campbell, Secretary
Mr. Ed Contreras, Member
Mrs. Linda B. Rosenthal, Member
Mrs. Nancy Stein, Member
Administration
Dr. Fred Gaskin, Chancellor *
Dr. Rufus Glasper, Vice Chancellor Business Services
Ms. Bertha Landrum, Interim Vice Chancellor Educational and Student Development
Dr. Raúl Cárdenas, Vice Chancellor External Affairs *
Mr. Ron Bleed, Vice Chancellor Information Technologies
Dr. Phil Randolph, Interim Vice Chancellor Quality and Employee Development
College Presidents & Director
Mrs. Arnette Ward, President, Chandler-Gilbert Community College
Dr. Homero Lopez, President, Estrella Mountain Community College
Dr. Fred Gaudet, Interim President, GateWay Community College
Dr. Tessa Martinez Pollack, President, Glendale Community College
Dr. Larry Christiansen, President, Mesa Community College
Dr. Gina Kranitz, Interim President, Paradise Valley Community College
Dr. Marie Pepicello, President, Phoenix College
Dr. Linda Thor, President, Rio Salado Community College
Dr. Art DeCabooter, President, Scottsdale Community College
Dr. John Cordova, President, South Mountain Community College
Mr. Stan Grossman, Director, Maricopa Skill Centers
* Effective July 1, 2000
tt 27 tt
Vision
The Maricopa Community Colleges strive to exceed the changing expectations of our many communities
for effective, innovative, student-centered, flexible and lifelong educational opportunities. Our employees
are committed to respecting diversity, continuous quality improvement, and the efficient use of resources.
We are a learning organization guided by our shared values.
Mission
The Maricopa Community Colleges create and continuously improve affordable, accessible, effective and
safe learning environments for the lifelong educational needs of the diverse communities we serve.
Our Colleges Fulfill This Mission Through:
55 University Transfer Education 55 Workforce Development
55 General Education 55 Student Development Services
55 Developmental Education 55 Continuing Education
55 Community Education
Maricopa Community Colleges
Vision, Mission & Values
ADOPTED JULY 27, 1999, BY THE MARICOPA COMMUNITY COLLEGE DISTRICT GOVERNING BOARD
tt 28 tt
Statement of Values
We adhere to the philosophy that education thrives in a community bound by moral and ethical
values and devotion to lifelong learning. We accept the responsibility to respond to the needs of
the people in our communities who desire to fulfill their potential in life. Therefore, we operate
on the basis of openness and trust, to nurture an environment where we all can be heard. We
commit to living according to the following basic values which are vital to maintaining the integrity
and vitality of our community of learners.
Value Education
We value lifelong learning opportunities that
respond to the needs of our communities and
are accessible, affordable and of the highest
quality.
Value Students
We value students as the primary reason we
exist. We respect their diverse life experiences,
value their achievements, and appreciate their
contributions to our learning community.
Value Employees
We value all our employees, respect their
diverse life experiences, appreciate their
contributions to our learning community, and
encourage their individual professional
development.
Value Excellence
We invite innovation, support creative problem-solving,
and encourage risk-taking. We value
teamwork, cooperation and collaboration as
part of our continuous improvement efforts.
Value Diversity
We celebrate the diversity of our communities
and pledge to promote and recognize the
strengths as reflected in our employees and
students. We believe no one is more important
than another, each is important in a unique way,
and we depend on each other to accomplish
our mission.
Value Honesty and Integrity
We believe academic and personal honesty are
essential elements in our learning environment.
Employees and students must speak and act
truthfully.
Value Freedom
To foster our learning environment, we respect
individual rights and the privacy of our
employees and students, and encourage
dialogue and the free exchange of views.
Value Fairness
We advocate fairness and just treatment for all
students and employees.
Value Responsibility
We believe employees are accountable for their
personal and professional actions as they carry
out their assignments. We are all responsible
for making our learning experiences significant
and meaningful. We are accountable to our
communities for the efficient and effective use of
resources.
Value Public Trust
We honor the trust placed in us by the
community to prepare our students for their role
as productive world citizens.
tt 29 tt
t t 30tt
Maricopa County Community College District
Balance Sheet
June 30, 2000
(with comparative totals for 1999)
Current Funds
Unrestricted Total Current Funds
Auxiliary (Memorandum Only)
General Enterprises Restricted 6-30-00 6-30-99
Assets
Cash and cash equivalents $ 17,498,338 $ - $ 355,833 $ 17,854,171 $ 48,730,618
Investments 34,529,467 58,295,553 7,202,533 100,027,553 59,050,948
Cash and investments held by trustee - - - - -
Receivables:
Property taxes 4,163,150 - - 4,163,150 3 ,767,077
Government grants, net of allowance - - 4,656,871 4,656,871 3 ,256,396
Student loans (less allowance of $1,582,441
in FY 2000 and $1,516,927 in FY 1999) - 1 47,331 6,182 153,513 229,238
Interest 196,616 4 05,495 3 7,397 639,508 465,822
Other, net of allowances 176,578 2,539,962 2,123,778 4,840,318 4 ,004,894
Due from other funds 31,905,866 - - 31,905,866 -
Inventories 201,144 21,858 3 6,579 259,581 261,326
Other 263,801 67,503 2 2,661 353,965 570,368
Property, buildings and equipment - - - - -
Total assets $ 88,934,960 $ 61,477,702 $ 1 4,441,834 $ 164,854,496 $ 120,336,687
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 2,051,656 $ 4 73,035 $ 1,060,138 $ 3,584,829 $ 2 ,069,163
Accrued liabilities 17,204,363 2,225,178 9,867 19,439,408 19,060,374
Deposits held in custody for others - - - - -
Interest payable - - - - -
Deferred revenues 1,862,648 8 07,000 6,519,827 9,189,475 5 ,557,949
Due to other funds - 31,905,866 - 31,905,866 -
Obligations under capital leases - - - - -
Other long-term obligations - - - - -
Bonds payable - - - - -
Other - 28,046 126,161 154,207 7 2,438
Total liabilities 21,118,667 35,439,125 7 ,715,993 64,273,785 2 6,759,924
Fund Balances:
Restricted
General - - 6,725,841 6,725,841 5 ,371,178
U.S. government grants refundable - - - - -
Quasi-endowment - - - - -
Endowment - - - - -
Unrestricted
Designated for future operations 45,623,255 - - 45,623,255 4 2,797,514
Undesignated 22,193,038 26,038,577 - 48,231,615 45,408,071
Net investment in plant - - - - -
Total fund balances 67,816,293 26,038,577 6 ,725,841 100,580,711 9 3,576,763
Total liabilities and fund balances $ 88,934,960 $ 61,477,702 $ 1 4,441,834 $ 164,854,496 $ 120,336,687
See accompanying notes to financial statements.
tt32tt
Plant Funds
Endowment Retirement Total All Funds
Loan and Similar of Investment Agency (Memorandum Only)
Fund Funds Unexpended Indebtedness in Plant Fund 6-30-00 6-30-99
$ 647,012 $ 5,400 $ 1,957,229 $ 26,961,933 $ - $ 5,522,858 $ 52,948,603 $ 92,177,492
- 4 ,868,329 87,293,130 - - 103,432 192,292,444 194,519,751
- - 6,553,541 - - - 6,553,541 7,143,879
- - - 687,731 - - 4,850,881 4,282,212
- - - - - - 4,656,871 3,256,396
1,103,602 - - - - - 1,257,115 1,465,071
- 3 0,125 138,504 - - 641 808,778 674,583
6,580 - - - - 19,044 4,865,942 4,018,352
- - - - - - 31,905,866 -
- - - - - - 259,581 261,326
- - 2 5,000 - - 11,440 390,405 606,232
- - - - 529,978,985 - 529,978,985 479,761,398
$ 1,757,194 $ 4 ,903,854 $ 95,967,404 $ 27,649,664 $ 529,978,985 $ 5,657,415 $ 830,769,012 $ 788,166,692
$ 1,404 $ - $ 4,650,235 $ - $ - $ 1,039,513 $ 9,275,981 $ 8,096,764
- - - - - 3,414,142 22,853,550 24,217,336
- - - - - 1,203,760 1,203,760 1,177,294
- - - 7,456,578 - - 7,456,578 7,683,402
- - - - - - 9,189,475 5,557,949
- - - - - - 31,905,866 -
- - 6 2,708 - 135,154 - 197,862 772,987
- - 2,043,165 - - - 2,043,165 2,528,396
- - 54,003,669 15,025,000 230,361,331 - 299,390,000 318,445,000
- - - - - - 154,207 72,438
1,404 - 60,759,777 2 2,481,578 230,496,485 5,657,415 383,670,444 368,551,566
1,007,109 - 35,207,627 5,168,086 - - 48,108,663 36,876,268
748,681 - - - - - 748,681 1,155,748
- 4 ,682,456 - - - - 4,682,456 4,450,066
- 2 21,398 - - - - 221,398 221,049
- - - - - - 45,623,255 42,797,514
- - - - - - 48,231,615 45,408,071
- - - - 299,482,500 - 299,482,500 288,706,410
1 ,755,790 4 ,903,854 35,207,627 5,168,086 299,482,500 - 447,098,568 419,615,126
$ 1,757,194 $ 4 ,903,854 $ 95,967,404 $ 27,649,664 $ 529,978,985 $ 5,657,415 $ 830,769,012 $ 788,166,692
tt33tt
Maricopa County Community College District
Statement of Changes in Fund Balances
For the Year Ended June 30, 2000
(with comparative totals for 1999)
Current Funds
Unrestricted Total Current Funds
Auxiliary (Memorandum Only)
General Enterprises Restricted 6-30-00 6-30-99
Revenues and Other Additions:
Unrestricted current revenues $ 277,412,975 $ 39,835,460 $ - $ 317,248,435 $ 293,848,064
Property taxes - - - - -
Tuition and fees - - 2,222,931 2,222,931 1,961,989
State appropriations - - 333,243 333,243 7 6,656
Government grants and contracts - - 39,562,926 39,562,926 43,643,315
Private gifts, grants, and contracts - - 13,715,776 13,715,776 11,240,006
Investment income - - 331,720 331,720 2 00,737
Interest on student loans - - - - -
Expended for plant facilities - - - - -
Retirement of indebtedness - - - - -
Proceeds from sale of capital assets - - - - -
Other - - 883,626 883,626 8 69,098
Total revenues and other
additions 277,412,975 39,835,460 57,050,222 374,298,657 351,839,865
Expenditures and Other Deductions:
Educational and general expenditures 270,658,366 - 58,173,002 328,831,368 309,054,922
Auxiliary enterprises expenditures - 31,723,894 - 31,723,894 29,500,040
Indirect costs recovered - - 714,615 714,615 8 66,021
Refunded to grantors - - 180,013 180,013 1 69,797
Loan cancellations, write-offs
and provision for bad debts - - - - -
Expended for plant facilities - - - - -
Retirement of indebtedness - - - - -
Interest on indebtedness - - - - -
Disposal of plant facilities - - - - -
Other - - - - -
Total expenditures and other
deductions 270,658,366 31,723,894 59,067,630 361,449,890 339,590,780
Transfers Among Funds -
Additions (Deductions):
Mandatory transfers for -
Principal and interest - (2,738,851) - (2,738,851) (2,780,319)
College matching portion of:
Government grants (642,694) (334,399) 977,093 - -
Student loans - 527 - 527 (5,347)
Total mandatory transfers (642,694) (3,072,723) 977,093 (2,738,324) (2,785,666)
Nonmandatory transfers (net) (1,827,742) (3,673,731) 2,394,978 (3,106,495) (281,906)
Total transfers (2,470,436) (6,746,454) 3,372,071 (5,844,819) (3,067,572)
Net Increase (Decrease) for the Year 4,284,173 1,365,112 1,354,663 7,003,948 9,181,513
Fund Balances, July 1 63,532,120 24,673,465 5,371,178 93,576,763 84,395,250
Fund Balances, June 30 $ 67,816,293 $ 26,038,577 $ 6,725,841 $ 100,580,711 $ 93,576,763
See accompanying notes to financial statements.
tt34tt
Plant Funds
Endowment Retirement Total All Funds
Loan and Similar of Investment (Memorandum Only)
Fund Funds Unexpended Indebtedness in Plant 6-30-00 6-30-99
$ - $ - $ - $ - $ - $ 317,248,435 $ 293,848,064
- - - 29,322,936 - 2 9,322,936 22,906,230
- - - - - 2,222,931 1,963,278
- - 7,660,000 - - 7,993,243 7,458,256
2,030 - - - - 3 9,564,956 43,659,355
2,500 - 130,183 - 256,431 1 4,104,890 11,623,639
- 231,798 5 ,625,355 7 20,790 - 6,909,663 7,187,216
42,784 - - - - 42,784 41,889
- - - - 57,308,411 5 7,308,411 80,292,158
- - 405,000 - 15,416,738 1 5,821,738 20,195,760
- - 34,395 - - 34,395 21,564
69,320 2,062 10,868 - - 965,876 1,088,614
116,634 233,860 1 3,865,801 30,043,726 72,981,580 491,540,258 490,286,023
- - - - - 328,831,368 309,054,922
- - - - - 3 1,723,894 29,500,040
84,634 - - - - 799,249 960,437
11,325 - - - - 191,338 169,797
34,578 - - - - 34,578 298,314
- - 6 3,566,732 - - 6 3,566,732 87,186,765
- - 796,738 15,025,000 - 1 5,821,738 20,195,760
- - 18,019 15,310,588 - 1 5,328,607 13,264,734
- - - - 7,568,868 7,568,868 22,147,570
- - 190,444 - - 190,444 485,040
130,537 - 6 4,571,933 30,335,588 7,568,868 464,056,816 483,263,379
- - - 2 ,738,851 - - -
- - - - - - -
(527) - - - - - -
(527) - - 2 ,738,851 - - -
23,700 (1,121) 5 8,429,306 (708,768) ( 54,636,622) - -
23,173 (1,121) 5 8,429,306 2 ,030,083 ( 54,636,622) - -
9,270 232,739 7 ,723,174 1 ,738,221 10,776,090 2 7,483,442 7,022,644
1,746,520 4,671,115 2 7,484,453 3 ,429,865 288,706,410 419,615,126 412,592,482
$ 1,755,790 $ 4,903,854 $ 3 5,207,627 $ 5 ,168,086 $ 299,482,500 $ 447,098,568 $ 419,615,126
tt35tt
Maricopa County Community College District
Statement of Current Funds
Revenues, Expenditures, and Other Changes
For the Year Ended June 30, 2000
(with comparative totals for 1999)
Unrestricted Total Current Funds
Auxiliary (Memorandum Only)
General Enterprises Total Restricted 6-30-00 6-30-99
Revenues:
Property taxes $ 174,909,180 $ - $ 174,909,180 $ - $ 174,909,180 $ 162,623,054
State appropriations 44,804,900 - 44,804,900 333,243 45,138,143 41,558,156
Government grants and
contracts - - - 38,738,506 38,738,506 43,444,271
Private gifts, grants, and
contracts - 39,332 39,332 12,682,853 12,722,185 9,946,621
Tuition and fees 54,382,513 29,572,381 83,954,894 4,225,961 88,180,855 80,654,178
Investment income 2,991,965 3,313,419 6,305,384 331,720 6,637,104 6,311,931
Bookstore commissions - 1,706,255 1,706,255 - 1,706,255 1,570,518
Food services sales - 567,588 567,588 - 567,588 573,816
Other 324,417 4,636,485 4,960,902 883,626 5,844,528 5,200,810
Total revenues 277,412,975 39,835,460 317,248,435 57,195,909 374,444,344 351,883,355
Expenditures and
Mandatory Transfers:
Educational and general
expenditures -
Instruction 138,891,443 - 138,891,443 10,854,902 149,746,345 141,093,914
Public service 210,890 - 210,890 10,623,723 10,834,613 13,788,226
Academic support 31,873,387 - 31,873,387 791,110 32,664,497 29,205,254
Student services 20,798,081 - 20,798,081 28,750,815 49,548,896 49,470,465
Institutional support 55,306,113 - 55,306,113 2,062,420 57,368,533 50,492,315
Operation and
maintenance of plant 23,578,452 - 23,578,452 792,918 24,371,370 21,594,430
Scholarships - - - 4,297,114 4,297,114 3,410,318
Total educational and
general expenditures 270,658,366 - 270,658,366 58,173,002 328,831,368 309,054,922
Auxiliary enterprises
expenditures - 31,723,894 31,723,894 - 31,723,894 29,500,040
Total expenditures 270,658,366 31,723,894 302,382,260 58,173,002 360,555,262 338,554,962
Mandatory transfers for -
Principal and interest - 2,738,851 2,738,851 - 2,738,851 2,780,319
College matching portion of -
Government grants 642,694 334,399 977,093 (977,093) - -
Student loans - (527) (527) - (527) 5,347
Total mandatory transfers 642,694 3,072,723 3,715,417 (977,093) 2,738,324 2,785,666
Total expenditures and
mandatory transfers 271,301,060 34,796,617 306,097,677 57,195,909 363,293,586 341,340,628
Other Transfers and
Additions (Deductions):
Excess of transfers to revenue
over restricted receipts - - - (860,302) ( 860,302) (909,511)
Refunded to grantors - - - (180,013) ( 180,013) (169,797)
Nonmandatory transfers (net) (1,827,742) (3,673,731) (5,501,473) 2,394,978 ( 3,106,495) (281,906)
Net Increase in
Fund Balances $ 4,284,173 $ 1,365,112 $ 5,649,285 $ 1,354,663 $ 7,003,948 $ 9,181,513
See accompanying notes to financial statements.
tt36tt
t t 37tt
Maricopa County Community College District
Notes to Financial Statements
Fiscal Year Ended June 30, 2000
NOTE 1 - Summary of Significant Accounting Policies
The accounting policies of the Maricopa County Community College District (the District) conform to generally
accepted accounting principles applicable to governmental colleges and universities as set forth in the AICPA
College Guide model defined in Governmental Accounting Standards Board (GASB) Statement No. 15. This
authoritative pronouncement is consistent with accounting practices prescribed or permitted by the State Board
of Directors for Community Colleges of Arizona. A summary of the more significant accounting policies of the
District follows.
Reporting Entity - The District is a special-purpose government that is governed by a separately elected
governing body (the Board). It is legally separate and fiscally independent of other state or 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 financial reporting entity.
The financial activities of the Maricopa County Community College District Foundation, Inc., are not included in
the District’s financial statements. The Foundation is a nonprofit corporation controlled by a separate board of
directors. The goals of the Foundation are to promote educational programs and District objectives.
Fund Accounting - The accounts of the District are maintained in accordance with the principles of fund
accounting to ensure observance of limitations and restrictions on the resources available. 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
were a single fund. Within each fund group, fund balances restricted by outside sources are so indicated and are
distinguished from unrestricted funds.
Descriptions of Funds - The Current Funds account for resources that will be expended in the near
term for operating purposes in performing the primary and support missions of the District, which are instruction,
public service, academic support, student services, institutional support (i.e., administration), operation and
maintenance of plant, scholarships, and auxiliary enterprises. The individual Current Funds are described more
fully as follows:
tt The General Fund accounts for all unrestricted current financial resources not required to be accounted
for in other Current Funds.
tt The Auxiliary Enterprises Fund accounts for transactions of substantially self-supporting auxiliary activities
that provide services primarily to students, faculty and staff, and support educational activities. Such
activities include food services and intercollegiate athletics.
tt The Restricted Fund accounts for resources that are expendable for operating purposes, but restricted
by donors or other outside agencies as to a specific purpose for which they may be expended. Revenues
of the Restricted Fund are reported in the Statement of Current Funds Revenues, Expenditures, and
Other Changes only to the extent of expenditures and net mandatory transfers. Amounts expended in
excess of receipts and net mandatory transfers are reported as deductions from the fund balance during
the year.
tt38 tt
NOTE 1 - Summary of Significant Accounting Policies (continued)
The other funds of the District and their purposes are described as follows:
tt The Loan Fund accounts for loans and resources available for loans to students, faculty, and staff. The
loans are financed primarily by federal loan programs, the customary terms of which: (a) require that
the District match a portion of the federal funding, and (b) provide for the ultimate cancellation of a
portion of a loan if the recipient completes certain employment requirements. Interest on student loans
is recorded only when received.
tt The Endowment and Similar Funds account for assets subject to restrictions requiring that the principal
be invested permanently or for a certain period of time, although investment income may be expended.
The resources may either be restricted by the donor or designated by the Board.
tt The Plant Funds account for transactions relating to the District’s investment in property, buildings, and
equipment (i.e., plant assets). They include the Unexpended Plant Fund, Retirement of Indebtedness
Plant Fund, and Investment in Plant Fund.
The Unexpended Plant Fund accounts for resources available to finance the acquisition, construction,
or improvement of plant assets for the District. 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 the financing of District plant assets.
The Investment in Plant Fund accounts for the costs of plant assets and the related liabilities.
Assets recorded in the Investment in Plant Fund may be acquired from resources in the Unexpended
Plant, Auxiliary Enterprises, or Restricted Funds.
tt The Agency Fund accounts for resources held by the District as the 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.
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.
Budget - An annual budget is prepared and legally adopted for the General Fund, Auxiliary Enterprises Fund,
Restricted Fund, Unexpended Plant Fund, and Retirement of Indebtedness Plant Fund. These budgets are
adopted on a basis consistent with GAAP. Budget transfers within the General Fund are subject to limitations
imposed by function and by 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 the next year as a financing source for the new year.
Formally adopted budgets are not prepared for the Loan Fund, Endowment and Similar Funds, or the Agency
Fund. Expenditures may not exceed the available balances for each of these funds.
tt39 tt
NOTE 1 - Summary of Significant Accounting Policies (continued)
Encumbrances - Encumbrance accounting, under which purchase orders, contracts, and other commitments
for the expenditure of monies are recorded to reserve that portion of the applicable fund balance, is employed as
an extension of formal budgetary control. General Fund encumbrances outstanding at year-end for goods or
services that were not received before fiscal year-end are canceled.
Basis of Accounting - The accompanying financial statements are presented on the accrual basis of
accounting. Under this method, revenues are recorded when earned and expenditures are recorded when
materials or services are received. Grant revenues in the Restricted Fund are recognized to the extent that the
related expenditures have been incurred. 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
purport 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 Cash Equivalents - Cash and cash equivalents include petty cash on hand, cash in the
bank, cash invested in short-term U.S. Treasury securities, and cash and investments held by the County Treasurer.
Cash equivalents are defined as investments with original maturities of three months or less from the date of
acquisition.
Investments - Investments are reported at fair value at fiscal year-end.
Inventories - All inventories are stated at the lower of cost (first-in, first-out method) or market.
Property, Buildings, and Equipment - Property, buildings, and equipment are stated at cost at
date of acquisition, or fair market value at date of donation in the case of gifts. Major outlays for assets or
improvements to assets are capitalized as projects are constructed; interest is capitalized if material. These are
categorized as Construction in Progress until completed, at which time they are reclassified to the appropriate
asset type. To the extent that current funds are used to finance such assets, the amounts so provided are
accounted for as: (a) expenditures in the case of normal acquisition or replacement of movable equipment and
library books; (b) mandatory transfers (i.e., transfers among funds resulting from legally binding agreements) in
the case of required provisions for debt amortization and interest; or (c) nonmandatory transfers (i.e., transfers
among funds made at the discretion of the Board) in other cases. Depreciation on buildings and equipment is not
recorded.
Compensated Absences - Compensated absences consist of vacation leave earned and a projected
amount of sick leave based on accumulated balances for eligible employees. Employees may accumulate
vacation balances depending on years of service and employee group, but any vacation hours in excess of the
maximum amount that are unused at fiscal year-end are forfeited. Sick leave benefits provide for ordinary sick
pay and are cumulative. Sick leave balances accumulate to a maximum amount per employee and unused
balances are paid at retirement or death for employees having at least 10 years of service.
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 invested balances of each fund. Income earned by the Endowment Funds
is allocated to the Restricted or Unrestricted Current Funds based on the nature of the endowment. Interest
earned in the Quasi-endowment Fund is recognized in the Endowment and Similar Funds.
tt40 tt
NOTE 1 - Summary of Significant Accounting Policies (continued)
Summer Sessions - Summer sessions revenues and expenditures are reported within the fiscal year in
which the summer sessions program is predominantly conducted.
Tuition and Fees - Tuition and fees revenues (net of refunds) include $890,730 of waivers for benefits
charged to the appropriate expenditure category to which the benefited personnel or their dependents relate.
NOTE 2 - Deposits and Investments
Arizona Revised Statutes (A.R.S.) require certain public monies to be collected by the County Treasurer. Such
monies are the special tax levy for the District’s maintenance and operations and secondary levy collections for
the District’s principal and interest payments on general obligation bonded indebtedness.
The District acts as a prudent person dealing with the property of another by following statutory guidelines for
investment restrictions. The District may participate in U.S. government securities, repurchase agreements,
insured or collateralized deposits, certificates of deposit, and interest-bearing savings accounts. Stocks and
mutual funds held by the District were donated by third parties.
Deposits
At June 30, 2000, the total petty cash on hand was $213,630. The carrying amount of the District’s deposits was
$1,216,359, and the District’s bank balance was $3,891,744. Of the bank balance, $3,838,904 was covered by
federal depository insurance or by collateral held by the District or its agent in the District’s name, and $52,840
was uninsured and uncollateralized.
Investments
The District’s investments are categorized to give an indication of the level of risk assumed by the District at
June 30, 2000. Category 1 includes investments that are insured or registered in the District’s name, or for which
the securities are held by the District or its agent in the District’s name. Category 2 includes uninsured and
unregistered investments for which the securities are held by the counterparty’s trust department or agent in the
District’s name. Category 3 includes uninsured and unregistered investments for which the securities are held
by the counterparty, or by its trust department or agent but not in the District’s name.
The District’s investment in the State and County Treasurer’s investment pools represent shares in those pools’
portfolios. The shares are not identified with specific investments and are not subject to credit risk. The same
is true for the District’s investments in mutual funds. Repurchase agreements are limited to U.S. Treasury
securities pursuant to provisions of a guaranteed investment contract.
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 the structure of that pool does not provide for
shares.
t t 41tt
NOTE 2 - Deposits and Investments (continued)
Deposits and Investments at June 30, 2000, consist of the following:
Deposits and Investments by Category
Categories Fair
1 2 3 Value
U.S. Government securities $ 61,873,664 $ 61,873,664
Repurchase agreements 53,041,417 53,041,417
Certificates of deposit 181,000 181,000
Stocks held by the District 57 57
$115,096,138 115,096,138
Cash & Investments not subject to categorization:
Cash and investments held by the County Treasurer 1,543,614
State Treasurer’s investment pool 127,112,157
Mutual funds 59,149
Cash in bank 1,216,359
Petty cash 213,630
Total deposits and investments at June 30, 2000 $245,241,047
Balance sheet:
Cash and cash equivalents $ 52,948,603
Investments 192,292,444
Total $245,241,047
Cash and Investments Held by Trustee
Cash and investments held by trustee at June 30, 2000, are restricted as to usage and consist of U.S.
government securities with a fair value of $6,553,541. These securities, which are registered in the name
of the pledging financial institution pursuant to depository trust agreements, are considered a category
3 investment.
t t 42tt
NOTE 3 - Property Taxes Receivable
The Maricopa County Treasurer is responsible for the collection of property taxes for all governmental entities
within the county. The property taxes due the District are levied in August by the Maricopa County Treasurer.
However, a lien assessed against real and personal property attaches on the first day of January preceding
assessment and levy thereof. Property taxes are payable in two equal installments due in October and March.
The delinquent tax dates are the second business days in November and May.
Property taxes receivable consist of uncollected property taxes as determined from the records of the Maricopa
County Treasurer’s Office. Balances at June 30, 2000, follow:
Property Taxes Receivable by Fund
Fiscal General Retirement of
Year Fund Indebtedness
1999-00 $3,829,249 $667,206
Prior 333,901 20,525
Total property taxes receivable at June 30, 2000 $4,163,150 $687,731
NOTE 4 - Grants Receivable
Government grants receivable consist of unreimbursed expenditures relating to government grants and is shown
net of the related allowance for doubtful accounts. A summary of this allowance for doubtful accounts for
government grants receivable at June 30, 2000, follows:
Government Grants Receivable Allowance for Doubtful Accounts
Federal Grants $623,971
State Grants 209,401
Total allowance for doubtful accounts at June 30, 2000 $833,372
tt43tt
NOTE 5 - Other Receivables
Other receivables are shown net of the related allowance for doubtful accounts. A summary of the allowance
for doubtful accounts for other receivables at June 30, 2000, follows:
Other Receivable Allowance for Doubtful Accounts by Fund
Auxiliary Enterprises Fund $ 359,380
Restricted Fund 5,966
Total allowance for doubtful accounts at June 30, 2000 $ 365,346
NOTE 6 - Property, Buildings, and Equipment
The following is a summary of changes in property, buildings, and equipment during the fiscal year:
Changes in Property, Buildings, and Equipment
Balance Balance
July 1, 1999 Additions Deductions June 30, 2000
Land $ 28,383,791 $ 114,656 $ - $ 28,498,447
Improvements other than
buildings 20,206,720 2,570,790 - 22,777,510
Buildings 296,938,264 13,094,179 549,550 309,482,893
Equipment 103,260,269 15,244,118 5,186,355 113,318,032
Library books 7,662,557 635,195 151,324 8,146,428
Telecommunications 1,681,639 - 1,681,639 -
Construction in progress 21,628,158 38,286,037 12,158,520 47,755,675
Total property, buildings,
and equipment $ 479,761,398 $ 69,944,975 $ 19,727,388 $ 529,978,985
Estimated costs to complete construction in progress at June 30, 2000, is $62,040,538. Expended for plant
facilities additions in the Investment in Plant Fund include $1,923,120 of expenditures charged to current funds in
fiscal year 2000. Expended for plant facilities deductions in the Unexpended Plant Fund include $8,181,441 of
noncapitalized expenditures in fiscal year 2000.
t t 44 tt
NOTE 7 - Compensated Absences
The District accrues amounts for compensated absences as earned, which include vacation and sick leave. As
of June 30, 2000, the compensated absences accrual is $16,239,548. Of this amount, $15,074,125 makes up the
General Fund portion and $1,165,423 makes up the Auxiliary Enterprises Fund portion. These amounts are
reported on the balance sheet as accrued liabilities.
NOTE 8 - Obligations Under Capital Leases
Capital lease obligations at June 30, 2000, consist of various capital lease agreements entered into for the
acquisition of computer and office/instructional equipment. Under terms of these obligations, interest is to be
paid at rates ranging from 5.95 to 18.31 percent; amortization periods range from three to five years. Assets
totaling $406,094 acquired under the provisions of these lease agreements are capitalized in the Investment in
Plant Fund. The leases provide bargain purchase options.
At June 30, 2000, the future minimum lease payments, together with the present value of the net minimum lease
payments, follow:
Future Minimum Capital Lease Payments
Year ending June 30:
2001 $ 79,443
2002 75,697
2003 61,473
2004 13,822
Total minimum lease payments 230,435
Less amount representing interest 32,573
Present value of net minimum lease payments at June 30, 2000 $ 197,862
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NOTE 9 - Obligations Under Operating Leases
The District leases land, buildings, and equipment under the provisions of long-term lease agreements classified
as operating leases. Rental expenditures under the terms of the operating leases were $787,089 for the year
ended June 30, 2000. The operating leases have remaining noncancelable lease terms from one to 66 years.
The future minimum rental payments required under operating lease agreements as of June 30, 2000, follow:
Future Minimum Operating Lease Payments
Year ending June 30:
2001 $ 756,463
2002 469,142
2003 384,335
2004 365,347
2005 9,600
Thereafter 476,800
Total minimum lease payments at June 30, 2000 $2,461,687
NOTE 10 - Bonds Payable
Revenue Bonds
Revenue Refunding Bonds, Series 1993
In July 1993, the District issued $14,995,000 of revenue refunding bonds to purchase securities that were placed
in an irrevocable trust for the purpose of generating resources for all future debt service payments on $13,295,000
of refunded Series 1986 debt. The bonds are noncallable.
The trustee has retired all of the defeased Series 1986 bond liability.
Revenue Bonds, Series 1998
In May 1998, the District issued $6,000,000 of revenue bonds to construct, furnish, and equip a performing arts
center and make related site improvements. Bonds maturing on or before July 15, 2007, are non-callable. Bonds
maturing on or after July 15, 2008, are subject to early redemption.
Principal and interest requirements of the revenue bonds at June 30, 2000, follow:
Outstanding
Description Interest Rates Maturities Principal
Revenue Refunding Bonds, Series 1993 4.65 - 5.10% 7/15/2000-05 $10,665,000
Revenue Bonds, Series 1998 4.25 - 5.75% 7/15/2000-10 5,690,000
Total $16,355,000
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NOTE 10 - Bonds Payable (continued)
Revenue bond debt service requirements to maturity, including interest of $3,219,205, follow:
Revenue Bond Debt Service Requirements to Maturity
Year ending June 30:
2001 $ 2,724,087
2002 2,724,300
2003 2,713,586
2004 2,709,609
2005 2,706,193
Thereafter 5,996,430
Total revenue bond debt service
requirements at June 30, 2000 $19,574,205
General Obligation Bonds
General Obligation Bonds, Project of 1994 Series C (1999)
In February 1999, the District issued $104,250,000 of general obligation bonds. These bonds were issued to
make certain improvements to the District’s educational facilities and finance equipment purchases. Bonds
maturing on or before July 1, 2008, are noncallable. Bonds maturing on or after July 1, 2009, are subject to early
redemption.
General Obligation Refunding Bonds, Series 1998
In March 1998, the District issued $65,145,000 of general obligation bonds to advance refund $65,780,000 of
outstanding Series A (1995) General Obligation Bonds. The District defeased these bonds by placing the proceeds
of the new bonds in an irrevocable trust with an escrow agent to provide for all future debt service payments on
the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds of $61,245,000 are
not included in the District’s financial statements. Refunding bonds maturing on or before July 1, 2007, are
noncallable. Refunding bonds maturing on or after July 1, 2008, are subject to early redemption.
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NOTE 10 - Bonds Payable (continued)
General Obligation Bonds, Project of 1994 Series B (1997)
In June 1997, the District issued $124,250,000 of general obligation bonds. These bonds were issued to make
certain improvements to the District’s educational facilities, and finance equipment purchases. Bonds maturing
on or before July 1, 2006, are noncallable. Bonds maturing on or after July 1, 2007, are subject to early
redemption.
General Obligation Bonds, Project of 1994 Series A (1995)
In February 1995, the District issued $104,750,000 of general obligation bonds. The bonds were issued to
acquire land, improve and expand existing facilities, finance various equipment purchases, and defease certain
maturities of the District’s outstanding debt. Bonds maturing on or after July 1, 2004, are subject to early
redemption.
Of the total general obligation bonds originally authorized in 1994, $52,549,000 remain unissued.
Principal and interest requirements of the above-described general obligations bonds at June 30, 2000, follow:
Outstanding
Description Interest Rates Maturities Principal
General Obligation Bonds
Refunding, Series 1998 4.00 - 5.00% 7/1/2000-09 $ 53,360,000
Project of 1994
Series C (1999) 3.25 - 5.25% 7/1/2000-15 104,250,000
Series B (1997) 5.00 - 6.50% 7/1/2000-13 111,170,000
Series A (1995) 5.80 - 6.00% 7/1/2004-09 14,255,000
Total $283,035,000
General obligation bond debt service requirements to maturity, including interest of $118,150,348, follow:
General Obligation Bond Debt Service Requirements to Maturity
Year ending June 30:
2001 $ 26,877,519
2002 29,826,481
2003 20,295,881
2004 22,341,819
2005 22,076,604
Thereafter 279,767,044
Total general obligation bond debt service
requirements at June 30, 2000 $401,185,348
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NOTE 11 - Changes in Long-term Liabilities
During the year ended June 30, 2000, the following changes occurred in long-term liabilities reported in the Plant
Funds:
Changes in Plant Fund Long-term Liabilities
Balance Balance
July 1, 1999 Additions Reductions June 30, 2000
General Obligation Bonds $300,270,000 $ - $17,235,000 $283,035,000
Revenue Bonds 18,175,000 - 1,820,000 16,355,000
Certificates of Participation 905,000 - 905,000 -
Capital Leases 772,987 221,613 796,738 197,862
Rebatable Arbitrage Earnings 1,623,396 419,769 - 2,043,165
Total plant fund
long-term liabilities $321,746,383 $641,382 $20,756,738 $301,631,027
NOTE 12 - Retirement Plan
Plan Description - The District contributes to a cost-sharing multiple-employer defined benefit pension
plan administered by the Arizona State Retirement System (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 rates. For the year ended June 30, 2000, active plan members and the District were each
required by statute to contribute at an 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, 2000, 1999, and 1998, were $4,582,122, $5,360,511, and $5,217,910,
respectively, which were equal to the required contributions for the year.
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NOTE 13 - Other Revenues
Auxiliary Enterprises Fund other revenues, as reported in the Statement of Current Funds Revenues, Expenditures,
and Other Changes for the year ended June 30, 2000, follow:
Auxiliary Enterprises Fund Other Revenues by Major Category
Sales/Services $1,733,865
Workshops/Seminars 868,585
Rentals 1,144,939
Miscellaneous 889,096
Total Auxiliary Enterprises Fund other revenues
for the year ended June 30, 2000 $4,636,485
NOTE 14 - Government Grants and Contracts Revenue
Restricted Fund government grants and contracts revenue reported in the Statement of Current Funds Revenues,
Expenditures, and Other Changes for the year ended June 30, 2000, follows:
Restricted Fund Government Grants and Contracts Revenue
Federal $32,535,870
State 4,881,964
Local 1,320,672
Total government grants and contracts revenue
for the year ended June 30, 2000 $38,738,506
Federal revenue includes monies received either as direct federal financial assistance or from a pass-through
agency.
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NOTE 15 - 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; and natural disasters. The District carries commercial insurance for all such risks of loss.
Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past
three fiscal years.
The District is also exposed to various risks of loss related to claims for bodily injury by accident or occupational
disease as described under the Workers’ Compensation Liability Laws of the State of Arizona. Effective
October 1, 1993, the District elected to establish a limited risk-management program to finance such uninsured
risks of loss up to $250,000 per occurrence, and an aggregate maximum annual liability of $1,000,000. The
District purchases commercial re-insurance to cover any additional Workers’ Compensation claims above these
amounts. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years.
The General, Auxiliary Enterprises, and Restricted Funds make contributions (based on estimates of the amounts
needed) to the General Fund to pay prior and current years’ Workers’ Compensation claims. Claims expenditures
and the related liability are reported in the General Fund when it is probable that a loss has occurred and the
amount of that loss can be reasonably estimated. These losses also include an estimate of claims that have been
incurred but not reported. The claims liability of $418,496 reported in accrued liabilities of the General Fund at
June 30, 2000, includes an estimate by the District and an outside risk analysis firm using historical data of the
District and the industry. An independent administrator, hired by the District, provides claim and recordkeeping
services. The District has established a reserve for future Workers’ Compensation catastrophic losses. The
amount of that reserve was $1,384,080 at June 30, 2000, and is reported as a restriction of fund balance in the
Quasi-Endowment Fund.
The summary of changes which occurred in the claims liability during the years ended June 30, follows:
Changes in Worker’s Compensation Claims Liability
2000 1999
Beginning claims liability at July 1 $389,072 $ 450,893
Incurred claims 318,498 217,140
Payment on claims (289,074) (278,961)
Ending claims liability at June 30 $418,496 $ 389,072
Maricopa County Community College District
Current Unrestricted Funds
Schedule of Revenues, Expenditures, and Other Changes
By College/Center
For the Year Ended June 30, 2000
Glendale GateWay Mesa Scottsdale
Phoenix Community Community Community Community
College College College College College
Revenues:
Property taxes $ 20,931,704 $ 2 3,080,013 $ 11,709,842 $ 27,788,725 $ 16,979,462
State appropriations 5,218,552 8 ,170,628 2,303,019 10,697,250 4,392,006
Private gifts, grants, and
contracts 2,625 - - - 3 1,899
Tuition and fees 8,677,138 1 2,789,848 3,608,601 18,909,315 8,770,437
Investment income 14,459 - - - -
Bookstore commissions - - - - -
Food services sales - - - - 4 29,894
Other 398,862 828,220 36,890 1,627,868 6 31,942
Total revenues 35,243,340 4 4,868,709 17,658,352 59,023,158 31,235,640
Expenditures and
Mandatory Transfers:
Educational and general
expenditures -
Instruction 18,714,125 2 5,732,248 8,979,654 29,986,339 16,111,023
Public service 39 51 19 4,927 3 4,619
Academic support 3,645,785 4 ,193,237 1,396,099 6,189,501 3,127,899
Student services 2,432,008 2 ,660,913 1,844,821 3,891,688 2,766,992
Institutional support 3,752,878 3 ,271,097 2,699,578 6,573,834 2,904,233
Operation and maintenance
of plant 3,385,421 3 ,169,062 1,578,728 3,948,400 2,710,032
Total educational and
general expenditures 31,930,256 3 9,026,608 16,498,899 50,594,689 27,654,798
Auxiliary enterprises
expenditures 3,228,690 4 ,573,346 1,113,340 6,172,817 3,421,262
Total expenditures 35,158,946 4 3,599,954 17,612,239 56,767,506 31,076,060
Mandatory transfers for -
Principal and interest - - - - -
College matching portion of -
Government grants 75,139 132,226 38,368 116,686 2 2,198
Student loans - - - - -
Total mandatory transfers 75,139 132,226 38,368 116,686 2 2,198
Total expenditures and
mandatory transfers 35,234,085 4 3,732,180 17,650,607 56,884,192 31,098,258
Other Transfers and
Additions (Deductions):
Nonmandatory transfers (net) (9,255) 34,651 (7,745) 38,966 (137,382)
Net Increase in Fund Balances $ - $ 1,171,180 $ - $ 2,177,932 $ -
See accompanying notes to supplemental information.
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South Chandler/ Paradise Estrella District Total
Rio Salado Mountain Gilbert Valley Mountain Support All
Community Community Community Community Community Services Colleges/
College College College College College Center Center
$ 12,734,567 $ 9,081,457 $ 11,528,238 $ 10,128,653 $ 6 ,795,111 $ 24,151,408 $ 1 74,909,180
6,360,056 1,258,091 2,177,732 2,685,840 1 ,541,726 - 44,804,900
- - 1,750 3,058 - - 39,332
10,303,318 2,447,588 3,762,089 4,664,494 2 ,408,954 7,613,112 83,954,894
- - - - - 6,290,925 6,305,384
- - - - - 1,706,255 1,706,255
- - - - 12,411 125,283 567,588
666,204 57,764 77,570 137,667 1 74,439 323,476 4,960,902
30,064,145 12,844,900 17,547,379 17,619,712 1 0,932,641 40,210,459 317,248,435
12,680,629 5,010,149 7,031,136 9,124,434 5 ,017,363 504,343 138,891,443
26 156,583 14,590 23 1 3 - 210,890
3,792,178 1,908,185 2,392,285 2,391,613 7 86,591 2,050,014 31,873,387
1,591,867 1,083,807 1,579,977 1,592,380 1 ,181,481 172,147 20,798,081
4,169,694 2,240,134 3,292,840 1,559,924 1 ,851,693 22,990,208 55,306,113
1,220,189 1,303,807 2,297,650 1,437,307 1 ,296,927 1,230,929 23,578,452
23,454,583 11,702,665 16,608,478 16,105,681 1 0,134,068 26,947,641 270,658,366
4,169,826 1,142,530 1,179,150 1,488,297 8 44,590 4,390,046 31,723,894
27,624,409 12,845,195 17,787,628 17,593,978 1 0,978,658 31,337,687 302,382,260
- - - - - 2,738,851 2,738,851
11,795 - 22,739 15,119 5 3,983 488,840 977,093
- - - - - (527) (527)
11,795 - 22,739 15,119 5 3,983 3,227,164 3,715,417
27,636,204 12,845,195 17,810,367 17,609,097 1 1,032,641 34,564,851 306,097,677
(127,768) 295 262,988 (10,615) 1 00,000 (5,645,608) (5,501,473)
$ 2,300,173 $ - $ - $ - $ - $ - $ 5,649,285
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  54  
Maricopa County Community College District
Notes to Supplemental Information
Fiscal Year Ended June 30, 2000
NOTE 1 - Statement of Purpose
The Maricopa County Community College District Current Unrestricted Funds Schedule of Revenues,
Expenditures, and Other Changes by College/Center for the Year Ended June 30, 2000, is required by the terms
of a Memorandum of Understanding (MOU) between the Maricopa County Community College District (the
District) and the North Central Association of Colleges and Schools Commission on Institutions of Higher
Education (NCA). The MOU outlines an appropriate pattern of evidence to be made available by the District
for purposes of meeting certain NCA Criteria for Accreditation related to financial resources/uses and other
assurances. This schedule presents current unrestricted revenues and expenditures for each college/center
within the District.
NOTE 2 - Basis of Allocation of Property Taxes and State Appropriation Revenues
The District receives and records property taxes and state appropriations revenues on behalf of the colleges.
For the purpose of this schedule, these revenues are allocated to the colleges on the basis of full time student
equivalents.
Maricopa County Community College District
Current Funds Expenditures By Function
Last Ten Fiscal Years
(Dollars in Thousands)
1999-00 1998-99 1997-98 1996-97 1995-96 1994-95 1993-94 1992-93 1991-92 1990-91
Instruction $ 149,746 $ 141,094 $ 131,284 $ 123,137 $ 115,416 $ 107,396 $ 99,451 $ 97,811 $ 97,907 $ 87,728
Public service 10,835 13,788 13,172 8,512 7,280 5,516 4,661 3,500 3,097 2,261
Academic support 32,664 29,205 27,439 24,311 24,296 22,327 20,858 20,638 17,516 18,346
Student services 49,549 49,471 46,999 45,972 39,157 38,674 36,252 34,874 34,354 29,492
Institutional support 57,369 50,492 44,511 42,984 38,248 35,080 30,822 31,685 31,346 28,878
Operation and
maintenance of plant 24,371 21,595 17,932 17,095 16,606 16,656 16,028 16,146 16,034 15,441
Scholarships 4,297 3,410 2,858 2,729 2,559 2,237 2,204 1,782 3,209 2,826
Auxiliary enterprises
expenditures 31,724 29,500 25,757 24,379 23,439 21,364 18,720 17,897 16,569 15,876
Provision for
bad debts - - - - - - - - - 487
Total expenditures $ 360,555 $ 338,555 $ 309,952 $ 289,119 $ 267,001 $ 249,250 $ 228,996 $ 224,333 $ 220,032 $ 201,335
(Percent of Total Expenditures)
1999-00 1998-99 1997-98 1996-97 1995-96 1994-95 1993-94 1992-93 1991-92 1990-91
Instruction 41.5% 41.7% 42.3% 42.6% 43.2% 43.1% 43.4% 43.6% 44.5% 43.6%
Public service 3.0 4.1 4.2 2.9 2.7 2.2 2.0 1.6 1.4 1.1
Academic support 9.1 8.6 8.9 8.4 9.1 8.9 9.1 9.2 8.0 9.1
Student services 13.7 14.6 15.2 15.9 14.7 15.5 15.8 15.5 15.6 14.7
Institutional support 15.9 14.9 14.4 14.9 14.3 14.1 13.5 14.1 14.2 14.3
Operation and
maintenance of plant 6.8 6.4 5.8 5.9 6.2 6.7 7.0 7.2 7.3 7.7
Scholarships 1.2 1.0 0.9 1.0 1.0 0.9 1.0 0.8 1.5 1.4
Auxiliary enterprises
expenditures 8.8 8.7 8.3 8.4 8.8 8.6 8.2 8.0 7.5 7.9
Provision for
bad debts - - - - - - - - - 0.2
Total expenditures 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Source: Annual Reports on Financial Statements for years presented.
Note: Current Funds include the General Fund, the Auxiliary Enterprises Fund, and the Restricted Fund.
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Maricopa County Community College District
Current Funds Revenues by Source
Last Ten Fiscal Years
(Dollars in Thousands)
1999-00 1998-99 1997-98 1996-97 1995-96 1994-95 1993-94 1992-93 1991-92 1990-91
Property taxes $ 174,909 $ 162,623 $ 151,871 $ 142,436 $ 133,613 $ 120,643 $ 115,822 $ 108,505 $ 101,453 $ 96,651
State appropriations 45,138 41,558 41,386 38,223 33,818 34,116 29,736 29,736 29,230 30,856
Government grants
and contracts 38,739 43,444 40,147 36,787 30,770 28,929 27,101 26,255 23,376 18,595
Private gifts, grants
and contracts 12,722 9,947 13,455 11,510 11,993 10,154 8,597 7,510 8,061 6,549
Tuition and fees 88,181 80,654 74,376 67,436 65,896 60,834 57,398 51,840 45,152 40,908
Investment income 6,637 6,312 5,049 4,419 2,978 2,009 977 963 1,503 2,541
Bookstore
commissions 1,706 1,570 1,382 1,237 1,137 1,090 1,051 1,155 1,170 1,082
Food services sales 568 574 597 575 594 616 554 591 589 775
Other 5,844 5,201 5,715 6,230 7,912 4,437 4,437 3,172 2,582 2,456
Total revenues $ 374,444 $ 351,883 $ 333,978 $ 308,853 $ 288,711 $ 262,828 $ 245,673 $ 229,727 $ 213,116 $ 200,413
(Percent of Total Revenues)
1999-00 1998-99 1997-98 1996-97 1995-96 1994-95 1993-94 1992-93 1991-92 1990-91
Property taxes 46.7% 46.2% 45.5% 46.1% 46.3% 45.9% 47.1% 47.2% 47.6% 48.2%
State appropriations 12.1 11.8 12.4 12.4 11.7 13.0 12.1 12.9 13.7 15.4
Government grants
and contracts 10.3 12.3 12.0 12.0 10.7 11.0 11.0 11.4 11.0 9.3
Private gifts, grants
and contracts 3.4 2.8 4.0 3.7 4.2 3.9 3.6 3.3 3.8 3.3
Tuition and fees 23.6 22.9 22.3 21.8 22.8 23.1 23.4 22.6 21.2 20.4
Investment income 1.8 1.8 1.5 1.4 1.0 0.8 0.4 0.4 0.7 1.3
Bookstore
commissions 0.4 0.5 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.5
Food services sales 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.4
Other 1.5 1.5 1.7 2.0 2.7 1.7 1.8 1.4 1.2 1.2
Total revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Source: Annual Reports on Financial Statements for years presented.
Note: Current Funds include the General Fund, the Auxiliary Enterprises Fund, and the Restricted Fund.
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Maricopa County Community College District
Expenditure Limitation
Statutory Limit to Budgeted Expenditures
Last Ten Fiscal Years
Amount
Statutory Adopted Below
Fiscal Expenditure Budget Legal
Year Limitation Expenditures Limit
1990-91 $ 1 38,320,596 $ 136,005,328 $ 2,315,268
1991-92 1 72,040,939 148,644,221 23,396,718
1992-93 1 80,277,122 152,974,446 27,302,676
1993-94 1 86,674,312 160,835,265 25,839,047
1994-95 1 83,795,851 172,633,157 11,162,694
1995-96 1 87,012,331 183,516,266 3,496,065
1996-97 1 88,737,382 188,235,660 501,722
1997-98 2 01,298,280 200,867,689 430,591
1998-99 2 09,241,921 209,042,664 199,257
1999-00 2 22,181,459 222,081,121 100,338
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.
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Maricopa County Community College District
Property Tax Levies and Collections
Last Ten Fiscal Years
Ratio of Ratio of
Percent of Total Tax Delinquent
Total Current Current Delinquent Total Collections to Outstanding Taxes to
Fiscal Primary Tax Taxes Tax Tax Total Delinquent Total
Year Tax Levy Collections Collected Collections Collections (1) Tax Levy Taxes (2) Tax Levy
1990-91 $ 99,770,455 $ 92,638,101 92.85 % $ 4,434,211 $ 97,072,312 97.30 % $ 7,320,433 7.34 %
1991-92 103,498,374 95,847,759 92.61 5,395,892 101,243,651 97.82 7,783,879 7.52
1992-93 108,000,734 102,814,923 95.20 5,498,986 108,313,909 100.29 5,755,264 5.33
1993-94 113,438,216 109,538,404 96.56 3,720,515 113,258,919 99.84 3,868,899 3.41
1994-95 118,830,665 113,568,756 95.57 2,550,033 116,118,789 97.72 3,642,646 3.07
1995-96 127,583,438 125,004,270 97.98 2,365,494 127,369,764 99.83 3,640,693 2.85
1996-97 136,915,672 133,679,652 97.64 2,641,902 136,321,554 99.57 3,399,451 2.48
1997-98 146,266,234 143,074,486 97.82 2,625,323 145,699,809 99.61 3,564,529 2.44
1998-99 158,025,622 155,061,199 98.12 2,411,702 157,472,901 99.65 3,859,439 2.44
1999-00 171,524,256 167,695,007 97.77 3,457,923 171,152,930 99.78 4,230,766 2.47
Maximum Tax
Fiscal Primary Revenue
Year Tax Levy (3) Recognized (4)
1990-91 $ 99,594,804 $ 98,270,654
1991-92 103,498,218 101,792,157
1992-93 108,558,401 106,246,700
1993-94 113,429,840 110,885,431
1994-95 119,654,428 115,439,066
1995-96 127,583,281 128,030,334
1996-97 136,570,230 137,000,323
1997-98 147,151,489 146,648,910
1998-99 158,026,342 157,558,395
1999-00 170,115,611 169,540,072
Source: Maricopa County Department of Finance, Maricopa County Treasurer's Office, and District records.
(1) Cash basis; excludes payments in lieu of taxes.
(2) Delinquencies for unsecured personal property are not included since collections often vary from the levy amount.
This variance is due to the fact that the unsecured personal property tax levy is based on a conservative
estimate of the assessed value.
(3) Pursuant to Arizona Revised Statutes, the amount of total primary property taxes levied is limited.
The levy limit grows by 2% each year plus new construction. Starting in fiscal year 1997-98,
the District was required to publish notice of its interest to raise taxes to the levy limit and also to
hold a public hearing on this proposal.
(4) Accrual basis; excludes payments in lieu of taxes.
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Maricopa County Community College District
Primary Assessed Value and Current Market Value
Of All Taxable Property
Last Ten Fiscal Years
(Dollars in Thousands)
Secured Unsecured Total Total Primary
Property Values Property Values Property Values Assessed Value
As a Percent of
Fiscal Current Current Current Total
Year Assessed Market Assessed Market Assessed Market Market Value
1990-91 $ 13,543,667 $ 94,829,048 $ 1,229,482 $ 5,445,310 $ 14,773,149 $ 100,274,358 14.7%
1991-92 12,967,078 92,667,731 1,268,098 5,590,095 14,235,176 98,257,826 14.5
1992-93 12,445,915 91,766,875 1,362,899 5,043,287 13,808,814 96,810,162 14.3
1993-94 12,300,837 90,277,507 1,203,271 5,328,743 13,504,108 95,606,250 14.1
1994-95 12,072,197 91,542,251 1,448,978 6,344,921 13,521,175 97,887,172 13.8
1995-96 13,322,347 100,603,839 797,088 4,722,441 14,119,435 105,326,280 13.4
1996-97 13,568,692 103,760,455 774,464 4,173,257 14,343,156 107,933,712 13.3
1997-98 14,854,238 115,551,926 869,260 4,724,629 15,723,498 120,276,555 13.1
1998-99 15,891,850 122,914,557 921,167 5,256,748 16,813,017 128,171,305 13.1
1999-00 17,749,278 137,565,447 927,553 5,226,790 18,676,831 142,792,237 13.1
Source: Maricopa County Department of Finance.
Note: Primary assessed values are used to determine primary levy for maintenance and operations;
secondary assessed values are used to determine secondary levy for general obligation bond debt service.
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Maricopa County Community College District
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
(Per $100 Assessed Valuation)
Maricopa County Community Central
College District Arizona
State Water Other
Fiscal Primary Secondary Maricopa Of Education Conservation Special School
Year Levy Levy Total County Arizona Equalization District Districts Districts Cities
1990-91 $ .7047 $ .0916 $ .7963 $ 1.61 $ .47 $ .53 $ .10 $ 0 - 2.81 $ .12 - 9.92 $ 0 - 2.77
1991-92 .7459 .0943 .8402 1.65 .47 .53 .14 0 - 3.47 .13 - 11.20 0 - 3.46
1992-93 .7938 .0572 .8510 1.65 .47 .53 .14 0 - 3.94 .09 - 9.57 0 - 2.18
1993-94 .8532 - .8532 1.65 .47 .53 .14 0 - 3.93 .13 - 18.99 0 - 2.39
1994-95 .8934 - .8934 1.65 .47 .53 .14 0 - 3.93 .14 - 10.27 0 - 2.95
1995-96 .9455 .1675 1.1130 1.65 .47 .53 .14 0 - 3.93 .08 - 11.98 0 - 2.90
1996-97 .9772 .0704 1.0476 1.65 .00 .53 .14 1 - 6.46 .11 - 10.22 0 - 2.21
1997-98 .9747 .1599 1.1346 1.65 .00 .53 .14 0