The Medical Center’s financial condition
improved as evidenced by reductions in
operating losses, cash deficits, and
county subsidies, as shown in the figure
below. The Medical Center has
experienced operating losses over the
past decade. However, the fiscal year
2003 operating loss is 29 percent less
than the prior year. The reduced
operating loss compared to last year
primarily resulted from a 10 percent
patient population growth and a 10
percent rate increase for patient services,
home health, and attendant care.
The Medical Center has been operating
with cash deficits over the past decade.
However, the fiscal year 2003 cash deficit
is 17 percent less than the prior year. For
financial statement presentation, the cash
deficit is displayed as amounts due to
2003
Year Ended June 30, 2003
Maricopa County
Subject
Maricopa 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.
Our Conclusion
The information in the
County’s financial
statements is fairly stated
in all material respects
and the financial
statements can be relied
on. The financial
statements include data
for the Maricopa County
Stadium District. The
District, which had over
$365 million in assets and
$66 million in long-term
debt, was audited by a
local public accounting
firm. Our opinion is based,
in part, on the work of
those auditors.
REPORT
HIGHLIGHTS
FINANCIAL STATEMENT AUDIT
Medical Center
Financial Condition
Improves
other county funds to represent a
temporary loan from the County General
Fund.
The County has subsidized the Medical
Center since fiscal year 1994 through the
County General Fund and the Maricopa
Integrated Health System (MIHS). The
Medical Center is a component of the
MIHS. Fiscal year 2003 county subsidies
are 46 percent less than the prior year.
During fiscal year 2003, the County
authorized $36.0 million in transfers to
cover indigent healthcare costs, $19.4
million of these subsidies originated from
other MIHS funds and $16.6 million were
transferred directly from the County
General Fund. Of the total, $19.4 million
was due to the Medical Center at fiscal
year end. The County’s fiscal year 2004
adopted budget includes $31.7 million
transfers into the Medical Center Fund.
$(56.9)
$(41.6)
$(29.4)
$(47.3)
$()
$(10)
$(20)
$(30)
$(40)
$(50)
$(60)
Operating loss Cash deficit
2002 2003
(In Millions)
$66.2
$36.0
$0
$10
$20
$30
$40
$50
$60
$70
$80
County subsidy
2002 2003
(In Millions)
Medical Center
Operating Losses and Cash Deficits
Past 2 Years
Medical Center
County Subsidies
Past 2 Years
Fiscal Year Fiscal Year
Summary of the County’s
Government-wide Financial Data
page2
The County Successfully
Implemented a New
Reporting Model
The information presented in the Maricopa
County Comprehensive Annual Financial Report
for the year ended June 30, 2002, followed the
new reporting model specified by the
Governmental Accounting Standards Board.
This was the first year the County implemented
the new reporting model.
The new reporting model’s primary objective is
to enhance the understandability and
usefulness of government financial reports to
the citizenry, legislative and oversight bodies, and
investors and creditors.
The Government Finance Officers Association of
the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in
Financial Reporting to Maricopa County for its
Comprehensive Annual Financial Report for the
year ended June 30, 2002, as the County had
successfully implemented the new reporting
requirements.
Statement of Net Assets
June 30, 2003
Total Governmental and
Business-type
Activities
Current and other assets $ 1,018,842,854
Capital assets 1,867,434,689
Total assets 2,886,277,543
Current and other liabilities 224,706,685
Long-term liabilities 330,836,983
Total liabilities 555,543,668
Net assets
Invested in capital assets, net of
related debt 1,604,799,544
Restricted net assets 278,281,992
Unrestricted net assets 447,652,339
Total net assets $ 2,330,733,875
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 below present a summarized version
of the County’s government-wide Statement of
Statement of Activities
For the Year Ended June 30, 2003
Total Governmental and
Business-type
Activities
Program revenues:
Governmental activities $ 484,465,367
Business-type activities 767,824,314
General revenues:
Governmental activities 949,684,972
Business-type activities 2,594,524
Total revenues 2,204,569,177
Expenses:
Governmental activities 1,130,811,778
Business-type activities 785,179,199
Total expenses 1,915,990,977
Change in net assets 288,578,200
Net assets—beginning 2,042,155,675
Net assets—ending $ 2,330,733,875
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.
page3
The General Fund’s fund balance, as
reported on the County’s fiscal year 2003
Comprehensive Annual Financial Report,
was $292.7 million at June 30, 2003, an
increase of 15 percent from fiscal year 2002
and 102 percent from fiscal year 1999. This
increase is shown in the figure below.
Property taxes and intergovernmental
revenues, consisting of state-shared sales
taxes and vehicle license taxes, representing
more than 90 percent of General Fund
revenues from fiscal years 1999 through
2003 have contributed to the increasing fund
balance. Property tax revenues, as reported
The County’s General Fund
Ending Balance Continues to Increase
$161.2
$254.1
$292.7
$160.8
$145.0
$0
$50
$100
$150
$200
$250
$300
$350
1999 2000 2001 2002 2003
for fiscal year 2003, increased 49 percent
from fiscal year 1999, and intergovernmental
revenues, as reported for fiscal year 2003,
increased 16 percent from fiscal year 1999,
as illustrated in the figure below. Therefore,
General Fund revenues increased substantially
when comparing fiscal years 2003 and 1999.
However, General Fund expenditures including
transfers out, as reported for fiscal year 2003,
increased only 12 percent from fiscal year
1999. These factors were the primary reasons
for the significant increase in the fund
balance of the General Fund between fiscal
years 1999 and 2003.
$686.9
$381.0
$198.9
$440.8
$768.7
$296.3
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
1999 2003
General Fund
Property Tax Revenues, Intergovernmental
Revenues, and Expenditures/Transfers Out
1999 and 2003 Fiscal Years
General Fund
Ending Fund Balance
Past 5 Years
Property Tax
Revenues
Intergovernmental
Revenues
Expenditures/
Transfers Out
(In Millions)
(In Millions)
Fiscal Year
Maricopa County
REPORT
HIGHLIGHTS
FINANCIAL STATEMENT AUDIT
Year Ended June 30, 2003
TO OBTAIN
MORE INFORMATION
page 4
The County continues its construction
activities. One way of measuring its activities
is to analyze the County’s construction in
progress at June 30, 2003, totalling $454.4
million. This amount consisted of jail facilities
for adult and juvenile detention,
transportation infrastructure, flood control
infrastructure, Medical Center improvement
projects, and various other projects, as
shown in the figure below. Jail facilities
construction accounted for 79 percent of
$359.0
$46.3
$32.7 $16.4
Jail facilities Transportation infrastructure
Flood control infrastructure Other
(In Millions)
construction in progress and is funded by
a one-fifth cent sales tax. Transportation
infrastructure accounted for 10 percent of
construction in progress and is funded by
highway user revenue funds. Flood control
infrastructure accounted for 7 percent of
construction in progress and is funded by
property taxes. The Medical Center and
other projects accounted for 4 percent of
construction in progress and are funded
by lease revenue bonds proceeds and
General Fund monies.
Construction in Progress
As of June 30, 2003
The County Continues its
Construction Plan
A copy of the full report
can be obtained by calling
the County at
(602) 506-3561, or visiting
the County Web site at:
www.maricopa .gov
visit
our Web site at:
www.auditorgen.state.az.us
Contact person for
this report is:
Dennis Levine
(602) 553-0333
