During fiscal year 2002, the District
implemented Governmental Accounting
Standards Board (GASB) Statement No.
35, Basic Financial Statements—and
Management’s Discussion and
Analysis—for Public Colleges and
Universities. This Statement establishes
new external financial reporting
standards for public colleges and
universities.
GASB Statement No. 35 requires the
District to present financial statements on
a consolidated basis to focus on the
District as a whole; previously, financial
statements focused on the accountability
of individual fund groups. The new
standards require three basic financial
statements: Statement of Net Assets;
Statement of Revenues, Expenses, and
Changes in Net Assets; and Statement of
Cash Flows.
Statement of Net Assets
The Statement of Net Assets reports all
assets and liabilities using the accrual
basis of accounting, which is similar to
the accounting that most private-sector
institutions use. Net assets, the difference
between assets and liabilities, is one way
to measure the District’s financial health.
Net assets includes three major
categories. The first category—invested in
capital assets, net of related
debt—shows the District’s equity in
property, plant, and equipment.
The next category—restricted net
2002
Year Ended June 30, 2002
Mohave County
Community College
District
Subject
The District is responsible for
preparing financial
statements, complying with
federal and state laws, and
maintaining strong internal
controls over compliance and
financial reporting. As the
auditors, our job is to
determine whether the District
has met its responsibilities.
The District’s Single Audit
Reporting Package includes
our report on the District’s
financial statements, the
District’s financial statements
including its Schedule of
Expenditures of Federal
Awards, and our reports on
the District’s compliance and
internal control.
Our Conclusion
The information in the
District’s financial statements
is fairly stated in all material
respects, and the financial
statements can be relied
upon. The District also
maintained adequate internal
controls over financial
reporting and federal
compliance, and complied
with federal program
requirements for the
programs tested.
REPORT
HIGHLIGHTS
SINGLE AUDIT
New Standards
Change the Focus of
Financial Reporting
assets—shows the net resources
available for certain district expenses. These
net assets must be used for purposes
determined by donors and external entities
that have placed purpose restrictions on the
use of those resources. The third
category—unrestricted net assets—shows
net resources available to the District to
fund general operations. The chart below
illustrates the components of the District’s
net assets as of June 30, 2002.
Net Assets
As of June 30, 2002
(In Thousands)
$966
$5,159
$1,866
Inv ested in capital assets, net of related debt
Unrestricted
Restricted
Statement of Revenues, Expenses,
and Changes in Net Assets
The Statement of Revenues, Expenses, and
Changes in Net Assets presents the District's
operating results, as well as nonoperating
revenues and expenses. Revenues and
expenses are classified as operating if they relate
to the District's primary activities, such as
instruction and student services. All other
revenues and expenses, such as state
page2
Statement of Cash Flows
The Statement of Cash Flows provides
information about cash receipts and cash
payments during the year. This statement helps
users assess the District’s ability to generate net
cash flows to meet its obligations as they come
due, and the need for external financing. The
summary to the right shows the net cash flows
from each of the District’s major activities.
Revenues
For the Year Ended June 30, 2002
(In Thousands)
Operating Revenues:
Tuition and fees $ 1,921
Government grants and contracts 1,881
Private grants and contracts 211
Bookstore income 1,208
Food service income 83
Sales and services 91
Other 168
Total operating revenues 5,563
Nonoperating Revenues:
Property taxes 9,289
State appropriations 3,945
Share of state sales taxes 363
Private gifts 139
Investment income 73
Total nonoperating revenues 13,809
Capital appropriations 471
Capital grants and gifts 47
Total revenues $19,890
Expenses
For the Year Ended June 30, 2002
(In Thousands)
Operating Expenses:
Educational and general:
Instruction $ 5,784
Public service 83
Academic support 4,196
Student services 1,345
Institutional support 3,183
Operation and maintenance of plant 1,600
Scholarships 1,706
Auxiliary enterprises 1,541
Depreciation 861
Other 3
Total operating expenses 20,302
Nonoperating Expenses:
Interest expense on debt 634
Other 406
Total expenses $21,342
Cash Flows
For the Year Ended June 30, 2002
(In Thousands)
Cash flows from:
Operating activities $(13,737)
Noncapital financing activities 13,784
Capital and related financing activities (1,914)
Investing activities 78
Net decrease in cash $ (1,789)
appropriations, property tax revenues, and
interest expense on debt, are considered
nonoperating, with two exceptions. Capital
appropriations and capital grants and gifts are
reported separately following nonoperating
revenues and expenses. The summaries below
present the District's revenues and expenses for
the year ended June 30, 2002.
The District Spent $1.8 Million
of Federal Monies
page3
The District spent $1.8 million of federal monies and
additional required state matching monies this past
year for 11 programs. The largest federal grants were
for student financial assistance. Under the guidelines
established by the Single Audit Act, auditors tested the
following federal programs, collectively referred to as
the Student Financial Assistance Program Cluster:
• Federal Supplemental Educational
Opportunity Grants
• Federal Work-Study Program
• Federal Perkins Loan Program—Federal Capital
Contributions
• Federal Pell Grant Program
The Single Audit Fact Sheet
• No weaknesses in financial reporting or
federal compliance internal controls.
• No violations of federal compliance
requirements.
• No program costs questioned as a result of
our audit.
The District Refunded
$4 Million in Long-Term Debt
to Extend the Period of Debt Repayment
During fiscal year 2002, the District issued Series
2001 Pledged Revenue Obligations to advance-refund
$4 million of Series 1994 Certificates of
Participation. An economic loss of $478,917 was
incurred and total debt service payments were
increased by $1.4 million as a result of the refunding.
The District’s primary reason to advance-refund the
certificates of participation was to extend the period
of debt repayment an additional 6 years giving the
District until fiscal year 2015 to repay the pledged
revenue obligations.
The summary to the right shows the District’s debt
service requirements to maturity (principal and
interest) for all outstanding bonds and pledged
revenue obligations at June 30, 2002.
Debt Service
Requirements to Maturity
As of June 30, 2002
Annual
Revenue Revenue Debt Service
Fiscal Year(s) Bonds Obligations Requirements
2003 $ 189,000 $ 614,040 $ 803,040
2004 189,000 763,415 952,415
2005 189,000 765,910 954,910
2006 189,000 766,510 955,510
2007 189,000 764,760 953,760
2008-12 945,000 5,557,000 6,502,000
2013-17 2,061,400 4,097,160 6,158,560
2018-20 2,244,500 2,244,500
Total $6,195,900 $13,328,795 $19,524,695
Mohave County
Community College
District
REPORT
HIGHLIGHTS
SINGLE AUDIT
Year Ended June 30, 2002
A copy of the full report
can be obtained by calling
(602) 553-0333
or by visiting
our Web site at:
www.auditorgen.state.az.us
Contact person for
this report:
Dennis Levine
TO OBTAIN
MORE INFORMATION
page 4
