Santa Cruz County annual expenditure limitation report: year ended June 30,...

              SANTA CRUZ COUNTY, ARIZONA
Annual Expenditure Limitation Report
Year Ended June 30, 2002
SANTA CRUZ COUNTY
Annual Expenditure Limitation Report
Year Ended June 30, 2002
Table of Contents Page
Independent Auditors’ Report 1
Annual Expenditure Limitation Report – Part I 2
Annual Expenditure Limitation Report – Part II 3
Annual Expenditure Limitation Report – Reconciliation 4
Notes to Annual Expenditure Limitation Report 5 – 7
Appendices
Governor’s Declaration of Emergency a – i
Santa Cruz County Resolution #2000-23
Declaration of Emergency b – i
2910 NORTH 44 th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553 -0333 • FAX (602) 553 -0051
DEBRA K. DAVENPORT, CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL
WILLIAM THOMSON
DEPUTY AUDITOR GENERAL
Independent Auditors' Report
Members of the Arizona State Legislature
The Board of Supervisors of
Santa Cruz County, Arizona
We have audited the accompanying Annual Expenditure Limitation Report of Santa Cruz County for
the year ended June 30, 2002. 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 Santa Cruz County for the year ended
June 30, 2002, 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.
Debbie Davenport
Auditor General
October 18, 2002
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SANTA CRUZ COUNTY
Annual Expenditure Limitation Report – Part I
Year Ended June 30, 2002
1. Economic Estimates Commission expenditure limitation $ 13,478,661
2. Amount subject to the expenditure limitation
(total amount from Part II, Line C) $ 13,718,323
3. Board-authorized expenditures necessitated by a disaster
declared by the Governor (Article IX, §20[2][a], Arizona
Constitution) 239,663
4. Total adjusted amount subject to the expenditure limitation 1 3,478,660
5. Amount under the expenditure limitation $ 1
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: Jennifer K. St. John, Director of Administrative Services
Telephone No: (520) 375-7800 Date: October 18, 2002
See accompanying notes to report
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SANTA CRUZ COUNTY
Annual Expenditure Limitation Report – Part II
Year Ended June 30, 2002
Special Debt Capital
General Revenue Service Projects
Description Fund Funds Fund Funds Total
A. Amounts reported on the Reconciliation, Line C $15,582,570 $ 10,387,330 $ 564,656 $ 540,316 $27,074,872
B. Less exclusions claimed:
Debt service requirements on bonded indebtedness 564,656 564,656
Debt service requirements on other long-term obligations (Note 2) 698,715 123,377 822,092
Dividends, interest, and gains on the sale of securities 1,216 1,216
Trustee or custodian (Notes 3 and 4) 482,832 15,358 498,190
Grants and aid from the federal government (Note 5) 631,746 2,807,449 251,667 3,690,862
Grants, aid, contributions, or gifts from a private agency, organization, or
individual, except amounts received in lieu of taxes (Note 6) 76,814 76,814
Amounts received from the State of Arizona (Note 5) 1,692,760 2,025,451 46,650 3,764,861
Highway user revenues in excess of those received in fiscal year 1979-80 (Note 5) 2,856,753 2,856,753
Contracts with other political subdivisions (Note 5) 651,976 191,404 843,380
Prior years carryforward (Note 7) 190,183 47,542 237,725
Total exclusions claimed 4,348,212 8,096,606 564,656 3 47,075 13,356,549
C. Amounts subject to the expenditure limitation $11,234,358 $ 2,290,724 $ $ 193,241 $13,718,323
See accompanying notes to report.
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SANTA CRUZ COUNTY
Annual Expenditure Limitation Report – Reconciliation
Year Ended June 30, 2002
Special Debt Capital
General Revenue Service Projects
Description Fund Funds Fund Funds Total
A. Total expenditures reported within the comprehensive annual financial report $ 18,459,073 $ 12,262,359 $ 564,656 $ 540,316 $ 31,826,404
B. Deductions:
Expenditures of separate legal entities established under Arizona Revised
Statutes (A.R.S.) (Note 8) 1,737,803 1,737,803
Community college reimbursement payments pursuant to
A.R.S. §15-1469.01 (Note 9) 899,688 899,688
Long-term care contributions withheld by the State Treasurer (Note 10) 1,707,337 1,707,337
Present value of net minimum capital lease payments recorded as
expenditures at the inception of the agreements 269,478 137,226 406,704
Total deductions 2,876,503 1,875,029 4,751,532
C. Amounts reported on Part II, Line A $ 15,582,570 $ 10,387,330 $ 564,656 $ 540,316 $ 27,074,872
See accompanying notes to report.
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SANTA CRUZ COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2002
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 §41-1279.07, which excludes expenditures of certain revenues specified in the Arizona
Constitution, Article IX, §20 from the total expenditures reported in the annual general purpose
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 deduction or addition in the Reconciliation that cannot be
traced directly to an amount reported in the annual general purpose financial statements. All
references to financial statement amounts in the following notes refer to the Combined
Statement of Revenues, Expenditures and Changes in Fund Balances – All Government Fund
Types.
Note 2 – The exclusion claimed for debt service requirements on other long-term obligations of $698,715
in the General Fund and $123,377 in the Special Revenue Funds consists of payments made on
capital lease agreements. These payments are reported as general government expenditures in
the General Fund and highways and streets expenditures in the Special Revenue Funds,
respectively, in the CAFR.
Note 3 – The exclusion claimed for trustee or custodian in the General Fund consists of $482,832 in
contributions by the County to the Arizona Health Care Cost Containment System for acute care.
These payments are reported as health, welfare and sanitation expenditures in the CAFR.
Note 4 – The exclusion claimed for trustee or custodian in the Special Revenue Funds consists of $15,358
in purchases made on behalf of various law enforcement agencies. These expenditures are
reported as public safety expenditures in the CAFR.
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, highway user revenues, and
contracts with other political subdivisions in the General, Special Revenue and Capital Projects
Funds.
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SANTA CRUZ COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2002
General Fund Special Revenue Funds Capital Project Funds
Amount Amount Amount
Amount Carried Amount Carried Amount Carried
Description Revenues Excluded Forward Revenues Excluded Forward Revenues Excluded Forward
Grants and aid from the federal
government $ 631,746 $ 631,746 $ 3,593,814 $ 2,807,449 $ 786,365 $ 253,060 $ 251,667 $ 1,393
Amounts received from the State
of Arizona 1,692,760 1,692,760 2,223,403 2,025,451 197,952 52,187 46,650 5,537
Highway user revenues in excess
of those received in fiscal
year 1979-80 2,856,753 2,856,753
Contracts with other political
subdivisions 651,976 651,976 191,404 191,404
Other revenues – (nonexcludable) 4,836,130 1,788,090
Total intergovernmental revenues
as reported in the CAFR $ 7,812,612 $ 2,976,482 $ $10,653,464 $ 7,881,057 $ 984,317 $ 305,247 $ 298,317 $ 6,930
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SANTA CRUZ COUNTY
Notes to Annual Expenditure Limitation Report
Year Ended June 30, 2002
Note 6 – The exclusion claimed for grants, aid, contributions, or gifts from a private agency, organization,
or individual, except amounts received in lieu of taxes of $76,814 in the Special Revenue Funds
consists of expenditures for salaries that were reimbursed by the Literacy Volunteers of America.
These expenditures are reported as education and economic opportunity expenditures in the
CAFR.
Note 7 – Prior years carryforward consists of constitutionally excludable revenues unexpended in the year
of receipt that have been accumulated and were expended in the current year as follows.
Capital
General Projects
Description Fund Funds
Dividends, interest, and gains
on the sale or redemption of
investment securities $ 21,760
Grants and aid from the federal
government 13,635
Amounts received from the
State of Arizona $ 190,183 12,147
Total prior years carryforward
expended $ 190,183 $ 47,542
Note 8 – The deduction of $1,737,803 in the Special Revenue Funds consists of expenditures of the Flood
Control District, a separate legal entity, which was included within the County’s reporting entity
but not included in the Economic Estimates Commission base limitation. These expenditures
are reported in the Special Revenue Funds as highways and streets expenditures in the CAFR.
Note 9 – The deduction of $899,688 for community college reimbursement payments is reported in the
General Fund as education and economic opportunity expenditures in the CAFR.
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 intergovernmental revenues and health, welfare
and sanitation expenditures in the General Fund in the CAFR. Consequently, this expenditure
has been deducted on the Reconciliation.
Note 11 – The adjustment to expenditures subject to the expenditure limitation of $239,663 in the Annual
Expenditure Limitation Report-Part 1 consists of Board-authorized expenditures necessitated by
a disaster declared by the Governor. These expenditures are reported as highways and street
expenditures in the CAFR. See appendices.