Report highlights financial statement audit: Pinal County

              Pinal County

REPORT



HIAGHLLIGHTS FIN NCIA STATEMENT AUDIT

Subject

Pinal County issues a Comprehensive Annual Financial Report. The County is responsible for preparing financial statements, maintaining strong internal controls, and demonstrating accountability for its use of public monies. As the auditors, our job is to determine whether the County has met its responsibilities.



The General Fund's Fund Balance Continues to Increase

The General Fund's fund balance, of $46.1 million at June 30, 2006, increased 39 percent from fiscal year 2005 and 257 percent from fiscal year 2002. This increase is illustrated in the figure to the right. Property taxes; intergovernmental revenues including state-shared sales tax; licenses and permits; and charges for services revenues represent at least 96 percent of General Fund revenues from fiscal years 2002 through 2006. Increases in these revenues are the primary reason for the significant increase in the General Fund's fund balance due to increases in property values and population growth.



Gen eral Fund En d in g Fund Balance Past 5 Years

$50 $45 $40 $35 (I n Millions) $30 $25 $20 $15 $10 $5 $0 2002 2003 2004 2005 2006 $12. 9 $19. 5 $27. 3 $33. 2 $46. 1



Our Conclusion

The information in the financial statements is fairly stated in all material respects, and the financial statements can be relied upon.



(restated) (restated) (restated)



County Entered into a $63.2 Million Loan Agreement

In April 2006, Pinal County entered into a loan agreement with the Greater Arizona Development Authority to provide funding for construction and improvement of certain highways and streets for the Gantzel Road project. The loan provided $63.2 million in funding and was secured by a pledge on stateshared revenues. As a result, the liabilities reported on the Statement of Net Assets increased 46 percent from the prior fiscal year. Unspent proceeds of more than $46 million have been invested in the U.S. agency securities specifically for the Gantzel Road project until needed for project expenses. More than $16 million has been expended and is reported as construction in progress in governmental activities capital assets on the Statement of Net Assets.



2006

Year Ended June 30, 2006



County's Condensed Financial Information



TO OBTAIN MORE INFORMATION

A copy of the full report can be obtained by calling

Statement of Net Assets June 30, 2006 (In Thousands) Total Governmental and Business-type Activities Current and other assets Capital assets Total assets Current and other liabilities Long-term liabilities Total liabilities Net assets Invested in capital assets, net of related debt Restricted net assets Unrestricted net assets Total net assets $189,054 304,259 493,313 19,972 185,533 205,505



The County's government-wide financial statements are designed to provide readers with a broad overview of the County's finances in a manner similar to private-sector businesses. These statements report the financial activities of the overall government, except for fiduciary activities. The tables to the right present a summarized version of the County's government-wide Statement of Net Assets and Statement of Activities reported in the current year Comprehensive Annual Financial Report. The Statement of Net Assets presents information on all county assets and liabilities, with the difference between the two reported as net assets. The Statement of Activities presents information showing how net assets changed during the most recent fiscal year.



(602) 553-0333



or by visiting our Web site at: www.azauditor.gov Contact person for this report: Phil Shultz



182,719 67,839 37,250 $287,808



Statement of Activities Year Ended June 30, 2006 (In Thousands) Total Governmental and Business-type Activities Program revenues: Governmental activities Business-type activities General revenue/transfers: Governmental activities Business-type activities Total revenues Expenses: Governmental activities Business-type activities Total expenses Change in net assets Net assets--beginning, as restated Net assets--ending $104,144 48,943 122,401 2,300 277,788 187,671 50,978 238,649 39,139 248,669 $287,808



FINANCIAL STATEMENT AUDIT



HIGHLIGHTS

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REPORT



Year Ended June 30, 2006



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