Mohave County report on audit of annual expenditure limitation report: year ended June 30,...

              MOHAVE COUNTY
REPORT ON AUDIT OF ANNUAL
EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2003
MOHAVE COUNTY
REPORT ON AUDIT OF ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2003
Table of Contents Page
Independent Auditors' Report 1
Annual Expenditure Limitation Report
Part I 2
Part II 3
Reconciliation 4
Notes to Annual Expenditure Limitation Report 5
Independent Auditors' Report
The Auditor General of the State of Arizona
The Board of Supervisors of
Mohave County, Arizona
We have audited the accompanying Annual Expenditure Limitation Report of Mohave County for
the year ended June 30, 2003. This report is the responsibility of the County's management. Our
responsibility is to express an opinion on this report based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the report is free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the report. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall report presentation. We believe that our audit provides a reasonable basis for our opinion.
The accompanying Annual Expenditure Limitation Report was prepared for the purpose of
complying with the uniform expenditure reporting system as discussed in Note 1, and is not intended
to be a presentation in conformity with U.S. generally accepted accounting principles.
In our opinion, the Annual Expenditure Limitation Report of Mohave County for the year ended
June 30, 2003, referred to above presents fairly, in all material respects, the information required by
the uniform expenditure reporting system on the basis of accounting described in Note 1.
This report is intended solely for the information and use of the members of the Arizona State
Legislature and the Board of Supervisors, and for filing with the Auditor General of the State of
Arizona and is not intended to be and should not be used by anyone other than these specified
parties. However, this report is a matter of public record and its distribution is not limited.
HEINFELD, MEECH & CO., P.C.
Certified Public Accountants
February 20, 2004
MOHAVE COUNTY
Annual Expenditure limitation Report – Part I
Year Ended June 30, 2003
1. Economic Estimates Commission expenditure limitation $112,759,929
2. Amount subject to the expenditure limitation (total amount 57,584,552
from Part II, Line C)
3. Amount under the expenditure limitation $ 55,175,377
I hereby certify, to the best of my knowledge and belief, that the information contained in this
report is accurate and in accordance with the requirements of the uniform expenditure reporting
system.
Signature of Chief Fiscal Officer:
Name and Title: John Timko, Financial Services Director
Telephone Number: 928-753-0735 Date: March 31, 2004
See accompanying notes to report.
2
MOHAVE COUNTY
Annual Expenditure Limitation Report - Part II
Year Ended June 30, 2003
Internal
Governmental Enterprise Service
Description Funds Funds Funds Total
Amounts reported on the Reconciliation, Line D $82,995,223 $2,875,396 $10,762,267 $96,632,886
Less exclusions claimed:
Certificate of Participation proceeds (Note 2) 1,714,636 1,714,636
Debt service requirements on other long-term obligations (Note 2) 36,743 87,739 124,482
Dividends, interest, and gains on the sale or redemption of
investment securities (Note 3) 3,793,675 295,175 250,135 4,338,985
Trustee or custodian (Note 4) 1,237,757 1,237,757
Grants and aid from the federal government (Note 5) 7,205,959 7,205,959
Amounts received from the State of Arizona (Note 5) 6,775,283 6,775,283
Quasi-external interfund transactions (Note 12) 4,348,916 4,348,916
Highway user revenues in excess of those received
in fiscal year 1979-80 (Note 5) 8,665,749 8,665,749
Prior years carryforward (Note 6) 4,636,567 4,636,567
Total exclusions claimed 34,066,369 295,175 4,686,790 39,048,334
Amounts subject to the expenditure limitation $48,928,854 $2,580,221 $6,075,477 $57,584,552
See accompanying notes to the report.
3
MOHAVE COUNTY
Annual Expenditure Limitation Report - Reconciliation
Year Ended June 30, 2003
Internal
Governmental Enterprise Service
Description Funds Funds Funds Total
Total expenditures/expenses/deductions and applicable other
financing uses, special items, and extraordinary items reported
within the annual general purpose financial statements $92,815,397 $3,731,314 $10,462,296 $107,009,007
Subtractions:
Items not requiring use of working capital:
Depreciation 816,816 522,216 1,339,032
Claims incurred but not reported (Note 7) 602,952 602,952
Landfill closure and postclosure care costs (Note 11) 119,894 119,894
Expenditures of separate legal entities established under Arizona
Revised Statutes (A.R.S.) (Note 9) 3,826,387 3,826,387
Long-term care contributions withheld by the State Treasurer (Note 10) 5,993,787 5,993,787
Total subtractions 9,820,174 936,710 1,125,168 11,882,052
Additions:
Acquisition of capital assets 80,792 782,310 863,102
Claims paid in the current year but reported as expenses incurred
but not reported in previous years (Note 8) 642,829 642,829
Total additions 0 80,792 1,425,139 1,505,931
D. Amounts reported on Part II, Line A $82,995,223 $2,875,396 $10,762,267 $96,632,886
See accompanying notes to the report.
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MOHAVE COUNTY
Notes to the Annual Expenditure Limitation Report
Year Ended June 30, 2003
Note 1 - Summary of Significant Accounting Policies
The Annual Expenditure Limitation Report (AELR) is presented on the basis of accounting
prescribed by the uniform expenditure reporting system (UERS), as required by Arizona Revised
Statutes Section 41-1279.07, which excludes expenditures expenses, or deductions of certain
revenues specified in the Arizona Constitution, Article IX, Section 20 from the total
expenditures, expenses, or deductions reported in the fund financial statements.
In accordance with the UERS requirements, a note to the AELR is presented below for any
exclusion claimed on Part II and each subtraction or addition in the Reconciliation that cannot be
traced directly to an amount reported in the fund financial statements. All references to financial
statement amounts in the following notes refer to the Statement of Revenues, Expenditures, and
Changes in Fund Balances for the Governmental Funds, Statement of Revenues, Expenses, and
Changes in Fund Net Assets for the Proprietary Funds, and the Statement of Cash Flows for the
Proprietary Funds.
Note 2
The exclusion claimed for debt service requirements on other long-term obligations consists of
expenditures for capital lease obligations recorded within various functional expenditure
categories and expenditures for principal retirement and interest and fiscal charges on certificates
of participation in the governmental funds.
General Other
G l
Internal Service
Description Fund Funds Funds
Capital leases $ 36,743 $ 87,739
Certificates of participation - $ 1,714,636
Total debt service requirements on other
long-term debt reported in the
financial statements $ 36,743 $ 1,714,636 $ 87,739
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MOHAVE COUNTY
Notes to the Annual Expenditure Limitation Report
Year Ended June 30, 2003
Note 3
The exclusion claimed for dividends, interest, and gains on the sale or redemption of investment
securities of $2,271,014 in the General Fund includes interest on investments expended of
$339,625 and interest on delinquent taxes expended of $1,931,389, which was recorded as tax
revenue. The exclusion claimed for dividends, interest, and gains on the sale or redemption of
investment securities of $1,522,661 in the all other Governmental Funds includes interest on
investments of $1,574,390 reduced by interest on investments of $51,729 for the special
assessment districts that were not included in the base limit
Note 4
The exclusion claimed for trustee or custodian in the Governmental Funds consists of $1,237,757
in contributions by the County to the Arizona Health Care Cost Containment System for acute
care, which is recorded in health expenditures.
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MOHAVE COUNTY
Notes to the Annual Expenditure Limitation Report
Year Ended June 30, 2003
Note 5
The following schedule presents revenues from which exclusions have been claimed for federal
grants and aid, amounts received from the State of Arizona and highway user revenues in the
Governmental Funds. The amounts excluded do not exceed expenditures of such revenues.
General Fund Road Fund
Amount Amount
Amount Carried Amount Carried
Description Revenues Excluded Forward Revenues Excluded Forward
Grants and aid from the
Federal Government $1,594,459 $1,594,459 - $36,688 $36,688 -
Amounts received from the state 768,517 768,517 - - - -
Highway user revenues in excess
of those received in fiscal
year 1979-1980 - - - 8,665,749 8,665,749 -
Highway user revenues 79-80 1,099,723 - -
Other revenues - (nonexcludable) 18,771,125 - - 1,896,451 - -
Total intergovernmental
revenues as reported in the
financial statements $21,134,101 $2,362,976 - $11,698,611 $8,702,437 0
Other Governmental Funds Total Governmental funds
Amount Amount
Amount Carried Amount Carried
Description Revenues Excluded Forward Revenues Excluded Forward
Grants and aid from the
Federal Government $5,574,812 $5,574,812 - $7,205,959 $7,205,959 -
Amounts received from the state 6,006,766 6,006,766 - 6,775,283 6,775,283 -
Highway user revenues in excess
of those received in fiscal
year 1979-1980 - - - 8,665,749 8,665,749 -
Highway user revenues 79-80 1,099,723 - -
Other revenues - (nonexcludable) 240,217 - - 20,907,793 - -
Total intergovernmental
revenues as reported in the
financial statements $11,821,795 $11,581,578 - $44,654,507 $22,646,991 0
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MOHAVE COUNTY
Notes to the Annual Expenditure Limitation Report
Year Ended June 30, 2003
Note 6
Prior years’ carry forward consists of constitutionally excludable revenues unexpended in the
year of receipt that have been accumulated and were expended in the current year or carried
forward as follows:
Carry forward Carry forward Carry forward
From Prior Generated To Subsequent
Years (Applied) Years
Governmental Funds
Dividends, interest and gains on the sale or
redemption of investments of securities
(note 3)
$2,036,500 ($2,036,500) $0
Intergovernmental Revenue (note 5) 29,497 (29,497) 0
Highway user revenues in excess of those
received in fiscal year 1979-1980 (note 5) 3,483,570 (2,570,570) 913,000
Total s $5,549,567 ($4,636,567) $ 913,000
Note 7
The subtraction of $602,952, for claims incurred but not reported, is included in the claims
payable amount of $622,134 at June 30, 2003, and consists of the estimated costs of claims
incurred and expensed in the current year but not yet paid in the Internal Service Funds.
Note 8
The addition of $ 642,829 for claims paid in the current year, but reported as expenses incurred
but not reported in previous years, consists of cash payments in the current year for claims
recognized as an expense in previous years in the Internal Service Funds.
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MOHAVE COUNTY
Notes to the Annual Expenditure Limitation Report
Year Ended June 30, 2003
Note 9
The deduction of $3,826,387 for separate legal entities established under Arizona Revised
Statutes consist of expenditures of special assessment districts, included within the County’s
reporting entity but not included in the Economic Estimate Commission base limit calculations,
and are reported in the Governmental Funds category in the fund financial statements:
Other Governmental
Funds
Special Assessment Districts
General government 754,043
Highways and streets 25,543
Capital Outlays 1,313,945
Principal retirement 1,274,000
Interest and fiscal charges 458,856
Total $3,826,387
Note 10
The amount of transaction privilege taxes withheld by the State Treasurer to meet the County’s
share of long-term care costs was reported as revenue and an offsetting expenditure in the
County’s financial statements. Consequently, this expenditure has been deducted on the
Reconciliation.
Note 11
The subtraction of $119,894 for landfill closure and postclosure care costs consists of that
portion of the total liability reported as expenses in the current year but not yet paid in the
Enterprise Funds.
Note 12
The Quasi-external interfund transactions amount, includes the expenditures paid to the internal
service fund, for services received by governmental funds.
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