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

              Gila County, Arizona
Report on Audit of Annual
Expenditure Limitation Report
Year Ended June 30, 2001
Table of Contents
Page
Independent Auditor’s 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
1
Independent Auditors' Report
The Auditor General of the State of Arizona
The Board of Supervisors of
Gila County, Arizona
We have audited the accompanying Annual Expenditure Limitation Report of Gila County for the
year ended June 30, 2001. 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 Gila County for the year ended June 30,
2001, 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.
Walker & Armstrong LLP
Certified Public Accountants
Phoenix, Arizona
June 7, 2002
1. $ 28,077,413
2.
27,571,556
3. $ 505,857
Telephone Number: Date: June 7, 2002
Name and Title:
Signature of Chief Fiscal Officer:
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.
John Nelson, County Manager/Administrator
(928) 425-3231
Amount under the expenditure limitation
Gila County
Annual Expenditure Limitation Report - Part I
Year ended June 30, 2001
Amount subject to the expenditure limitation (total amount from
Part II, Line C)
Economic Estimates Commission expenditure limitation
See accompanying notes to report.
2
Special Debt
General Revenue Service
Description Fund Funds Funds Total
A.
$ 25,028,851 $ 19,007,252 $ 331,840 $ 44,367,943
B. Less exclusions claimed:
1.
1,069,907 305,959 331,840 1,707,706
2.
645,510 250,432 - 895,942
3. Trustee or custodian (Note 5) 1,413,151 - - 1,413,151
4.
1,046,563 4,930,982 - 5,977,545
5.
629,543 3,424,043 - 4,053,586
6.
- 2,748,457 - 2,748,457
Total exclusions claimed 4,804,674 11,659,873 331,840 16,796,387
C.
$ 20,224,177 $ 7,347,379 $ - $ 27,571,556
Dividends, interest and gains
on the sale or redemption of
investment securities (Note 4)
Debt service requirements on
other long term obligations
(Notes 2 and 3)
Gila County
Annual Expenditure Limitation Report - Part II
Year ended June 30, 2001
Amounts reported on the
reconciliation, Line C.
Amounts subject to the
expenditure limititation.
Grants and aid from the
federal government (Note 6)
Amount received from the
State of Arizona (Note 6)
Highway user revenues in
excess of those received in
fiscal year 1979-80 (Note 6)
See accompanying notes to report.
3
Special Debt
General Revenue Service
Description Fund Funds Funds Total
A.
$ 28,398,349 $ 19,007,252 $ 331,840 $ 47,737,441
B. Deductions:
1.
955,611 - - 955,611
2.
2,413,887 - - 2,413,887
Total deductions 3,369,498 - - 3,369,498
C.
$ 25,028,851 $ 19,007,252 $ 331,840 $ 44,367,943
Gila County
Annual Expenditure Limitation Report - Reconciliation
Year ended June 30, 2001
Amounts reported on Part II,
Line A
Community college
reimbursement payments
pursuant to A.R.S. §15-
1469.01
Total expenditures or
expenses and applicable other
financing uses reported within
the general purpose financial
statements
Long-term care contributions
withheld by the State
Treasurer (Note 7)
See accompanying notes to report.
4
Gila County
Notes to Annual Expenditure Limitation Report
Year ended June 30, 2001
5
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 or expenses of certain revenues specified in the
Arizona Constitution, Article IX, §20 from the total expenditures or expenses 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 Governmental Fund Types for the General,
Special Revenue and Debt Service Funds.
Note 2
The exclusion claimed for debt service requirements on other long-term obligations in the Debt
Service Funds consists of principal retirement and interest expense.
Note 3
The exclusion claimed for debt service requirements on other long-term obligations in the General
and Special Revenue Funds consists of principal retirement and interest expense on capital lease
agreements, which is reported in the following categories in the general purpose financial statements:
Principal Retirement and
Interest Expense General Fund
Special
Revenue Fund
General government $ - $ 148,728
Public safety 163,908 -
Highways and streets - 157,231
Health, welfare and sanitation 905,999 -
Total $ 1,069,907 $ 305,959
Gila County
Notes to Annual Expenditure Limitation Report-Continued
Year ended June 30, 2001
6
Note 4
The exclusion claimed for dividends, interest, and gains on the sale or redemption of investment
securities of $645,510 in the General Fund includes interest on investments expended of $406,824
and interest on delinquent taxes expended of $238,686, which was recorded as tax revenue.
Note 5
The exclusion claimed for trustee or custodian consists of $1,413,151 in contributions by the County
to the Arizona Health Care Cost Containment System for acute care. This expenditure is included in
the general government expenditure category in the general purpose financial statements.
Note 6
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
General and Special Revenue Funds.
Description
General
Fund
Special
Revenue
Funds
Grants and aid from the federal government $ 1,046,563 $ 4,930,982
Amounts received from the State of Arizona 629,543 3,424,043
Highway user revenues in excess of those received in
fiscal year 1979-80 - 2,748,457
Other revenues ?(nonexcludable) 734,062 1,327,829
Total intergovernmental revenues as reported in the
general purpose financial statements $ 2,410,168 $ 12,431,311
Gila County
Notes to Annual Expenditure Limitation Report-Continued
Year ended June 30, 2001
7
Note 7
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 tax revenue and the offsetting expenditures were reported in
the general purpose financial statements under the health, welfare and sanitation functional
expenditure line items. Consequently, this expenditure has been deducted on the Reconciliation.