Yuma County, Arizona comprehensive annual financial report: fiscal year ended June 30, 2012

              In 1905, John Gandolfo built the Gandolfo Annex at 46 W. 2nd St. He originally used it as an office and hotel annex.
Prior to the Ocean to Ocean bridge, the ferry was means to cross the Colorado River from Yuma, Arizona to California
In 1883, John Gandolfo built the Gandolfo Building, which housed the Gandolfo Hotel and Gandolfo Café, on Main Street.
With more than 50 hotel rooms, it was the largest and ‘most elegant’ building in Yuma.
With its distinct arches the County Administration building was a favorable shopping stop in 1937, on the corner of 2nd &
Main Street.
Yuma County Courthouse Built in 1928 the structure was designed by the team of Ralph Swearingen and G. A. Hanssen
with Frank M. Connor and C. J. Brown as contractors.
John Gandolfo built the Gandolfo Theatre at 202 S. 1st Ave. in 1917 with a seating capacity of 635. During World War II,
the theater served as a USO canteen.
Yuma Territorial opened for business in 1876. In its heyday, the prison was often called “Devil’s Island” or “Hell Hole”
giving one the impression of its menacing notoriety
Southern Pacific handcar on the Colorado River Bridge in Yuma, Arizona. SP built these handcars in their shops and they
can be identified by their unique spoked wheels. Spokes gave way to pressed steel wheels for durability. This image from
1880 is about the time the pump car design became the standard.
Cover Illustration Details
Provided by Brenda Mendez
YUMA COUNTY
"Yuma County Government is dedicated to providing customer-focused services to enhance the health, safety, well-being,
and future of our entire community."
CCoommpprreehheennssi iivvee
AAnnnnuuaall FFi iinnaanncci iiaall RReeppoorrtt
For the Fiscal Year
Ended June 30, 2012
BOARD OF SUPERVISORS
Gregory S. Ferguson, Chair
5th District
Lenore Loroña Stuart, 1st District
Russell McCloud, 2nd District
Casey Prochaska, 3rd District
Marco A. (Tony) Reyes, 4th District
COUNTY ADMINISTRATOR
Robert Pickels
Prepared by Yuma County Department of Financial Services
Director
Scott G. Holt
Deputy Director
Gilberto Villegas, Jr.
Accountants
Toni Lindsay
Debra Beyer
LeeAnne Rachels
Tammy Vasquez
Engracia Lopez
Mary Jo McIntyre
Denise Perez Elizabeth Canela Elsa Garcia
Maritza Retiz Denise Butler
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YUMA COUNTY
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2012
TABLE OF CONTENTS
INTRODUCTORY SECTION Exhibit Page
Letter of Transmittal................................................................................................................ 3
Organizational Chart............................................................................................................... 8
Certificate of Achievement for Excellence in Financial Reporting .......................................... 9
FINANCIAL SECTION
Independent Auditors' Report................................................................................................. 13
Management's Discussion and Analysis ................................................................................ 17
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets ............................................................................... A-1 30
Statement of Activities .................................................................................. A-2 31
Fund Financial Statements
Balance Sheet - Governmental Funds .......................................................... B-1 34
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets ............................................................................ B-2 37
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds ...................................................... B-3 38
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities................................................................................ B-4 41
Statement of Net Assets - Proprietary Funds ............................................... C-1 42
Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Proprietary Funds ........................................................ C-2 43
Statement of Cash Flows - Proprietary Funds .............................................. C-3 44
Statement of Fiduciary Net Assets - Fiduciary Funds ................................... D-1 45
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds ................ D-2 46
Notes to Financial Statements .......................................................................................... 47
Required Supplementary Information
Budgetary Comparison Schedules
General Fund ............................................................................................. E-1 76
Jail District - General Operations Fund ..................................................... E-2 78
Library District - General Operations Fund ................................................ E-3 79
Flood Control District Fund ........................................................................ E-4 80
Health Services District Fund ………………………………………………… E-5 81
Development Services HURF Fund …………………………………………… E-6 82
Notes to Budgetary Comparison Schedules .................................................................. 83
Schedule of Agent Retirement Plans' Funding Progress……………………… F-1 86
Notes to Schedule of Agent Retirement Plans' Funding Progress ……………………… 87
Infrastructure Assets ..................................................................................... F-2 90
YUMA COUNTY
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2012
TABLE OF CONTENTS
FINANCIAL SECTION (Continued) Exhibit Page
Other Supplementary Information
Supplementary Schedules - Major Governmental Funds:
Schedule of Revenues by Category - Budget and Actual
General Fund ............................................................................................. G-1 96
Schedule of Expenditures by Category - Budget and Actual
General Fund ............................................................................................. G-2 98
Budgetary Comparison Schedule:
Capital Improvements Fund ........................................................................ G-3 100
Budgetary Comparison Schedule:
Debt Service Fund ...................................................................................... G-4 101
Nonmajor Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds
Special Revenue Funds ............................................................................ H-1 106
Debt Service Funds ................................................................................... H-2 122
Capital Projects Funds .............................................................................. H-3 124
All Nonmajor Governmental Funds ........................................................... H-4 126
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds
Special Revenue Funds .......................................................................... I-1 128
Debt Service Funds ................................................................................ I-2 144
Capital Projects Funds ............................................................................ I-3 146
All Nonmajor Governmental Funds ......................................................... I-4 148
Budgetary Comparison Schedules - Nonmajor Governmental Funds
Special Revenue Funds ............................................................................ J-1 150
Debt Service Funds ................................................................................... J-2 192
Capital Projects Funds .............................................................................. J-3 196
All Nonmajor Governmental Funds............................................................ J-4 199
Internal Service Funds:
Combining Statement of Net Assets ............................................................. K-1 202
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Assets ..................................................................... K-2 203
Combining Statement of Cash Flows ............................................................ K-3 204
YUMA COUNTY
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2012
TABLE OF CONTENTS
FINANCIAL SECTION (Concluded) Exhibit Page
Trust and Agency Funds:
Combining Statement of Net Assets ............................................................. L-1 206
Combining Statement of Changes in Net Assets .......................................... L-2 207
Statement of Changes in Assets and Liabilities ……………………………… L-3 208
Capital Assets Used in the Operations of Governmental Funds
Comparative Schedules by Source ............................................................... M-1 210
Schedule by Function and Activity ................................................................ M-2 211
Schedule of Changes by Function and Activity ............................................. M-3 212
STATISTICAL SECTION Table Page
Financial Trends
Government-wide Revenues by Source .......................................................... A-1 216
Government-wide Expenses by Function ........................................................ A-2 218
General Government Expenditures by Function .............................................. A-3 220
Fund Balances of Governmental Funds............................................................ A-4 222
Change in Fund Balances - All Funds Including Ratio of Total Debt Service
to Total Non-Capital Expenditures ................................................................ A-5 224
General Government Revenues by Source ..................................................... A-6 226
Tax Revenues by Source ................................................................................ A-7 228
Licenses and Permits by Source ...................................................................... A-8 230
Intergovernmental Revenues by Source ......................................................... A-9 232
Charges for Services by Source ..................................................................... A-10 234
Fines and Forfeits by Source .......................................................................... A-11 236
Miscellaneous Revenues by Source ............................................................... A-12 238
Other Financing Sources (Uses) ...................................................................... A-13 240
Net Assets by Category .................................................................................. A-14 242
General Fund Changes in Fund Balance ......................................................... A-15 244
Revenue Capacity
Assessed and Estimated Actual Value of Taxable Property............................. B-1 246
General Fund - Property Tax Levied and Collections (by Year Collected)....... B-2 247
General Fund - Property Tax Levied and Collections (by Year Levied)............ B-3 247
Principal Taxpayers........................................................................................... B-4 248
County General Sales Tax by Category............................................................ B-5 249
Sales Tax Rates in Yuma County..................................................................... B-6 249
YUMA COUNTY
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2012
TABLE OF CONTENTS
STATISTICAL SECTION (Concluded)
Debt Capacity
Property Tax Rates - Direct and Overlapping Governments
(General Taxing Authorities) ...................................................................... C-1 252
Property Tax Rates - Direct and Overlapping Governments
(Special District Taxing Authorities) ........................................................... C-2 253
Debt by Type..................................................................................................... C-3 254
Legal Debt Margin............................................................................................. C-4 256
Ratio of Net General Bonded Debt to Assessed
Value and Net Bonded Debt per Capita..................................................... C-5 257
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Expenditures........................................................... C-6 258
Computation of Direct and Overlapping Debt................................................... C-7 259
Pledged Revenues............................................................................................ C-8 260
Economic and Demographic Information
Demographic Statistics:
Population and Employment - by Sector.................................................... D-1 264
Population and Employment - by City........................................................ D-2 265
County Employees - by Activity.................................................................. D-3 266
Top Employers........................................................................................... D-4 268
County-Wide Other Demographic Statistics...................................................... D-5 269
County-Wide Building Permits, Bank Deposits, and Retail Sales..................... D-6 270
Operational Information
Capital Asset and Infrastructure Statistics by Function/Program...................... E-1 273
Operating Indicators by Function/Program....................................................... E-2 274
Schedule of Insurance in Force........................................................................ E-3 276
INTRODUCTORY SECTION
The Introductory Section is intended to familiarize the reader with Yuma County’s organization
structure, nature and scope of provided services, and specifics of its operating environment. The
information in this section should provide adequate background and sufficient context to assist the
reader with the financial section of this CAFR.
The following is contained in the Introductory Section:
Letter of Transmittal 3 – 7
Organizational Chart 8
Certificate of Achievement for Excellence in Financial Reporting 9
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FINANCIAL
SERVICES
DEPARTMENT
Scott G. Holt
Director
198 South Main Street
Yuma, Arizona. 85364
Voice (928) 373-1012
FAX (928) 373-1152
Gil Villegas Jr.
Deputy Director
November 9, 2012
The Honorable Board of Supervisors
and Citizens of Yuma County
To the Board of Supervisors and the Citizens of Yuma County, the Financial Services Department respectfully
submits Yuma County’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2012.
CAFR COMPOSITION
This report consists of management’s representations concerning the finances of Yuma County (County) in the
form of financial statements. The responsibility for the accuracy, completeness, and fairness of the presented data,
including all disclosures and notes, rests with the management of Yuma County. To the best of our knowledge and
belief, the data presented is accurate in all material respects. It is presented in a manner designed to fairly set forth
the financial position and results of operations of the County as measured by the financial activity of its various
funds. All disclosures necessary to enable the reader to gain an understanding of the County’s financial affairs
have been included.
U.S. GAAP requires management provide a narrative introduction, overview, and analysis to accompany the basic
financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it.
OTHER REPORTING REQUIRMENTS
Yuma County is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act
of 1984, the Single Audit Act Amendment of 1996, and U.S. Office of Management and Budget (OMB) Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations. Information related to this single audit, including a
schedule of expenditures of federal awards, findings and questionable costs, and an independent auditors’ report
on compliance with applicable laws, regulations, contracts, and grants to each major program and on internal
control over compliance are under a separate cover. The State of Arizona requires additional supplemental
information in the form of a report entitled “Expenditure Limitation Report” to be completed. This report is also
under a separate cover.
THE REPORTING ENTITY
County Profile: Yuma County, bordered by California to the West and Mexico to the South, was founded in 1864
as one of the four original counties established by the first Territorial Legislature. It maintained its designated
boundaries until 1983 when voters resolved to split Yuma County into LaPaz County in the north and a “new” Yuma
County in the south encompassing 5,522 square miles.
In 1540, just 48 years after Columbus stumbled upon the New World and 67 years before the settlement of
Jamestown, Hernando de Alarcon visited the site of what is now the city of Yuma. He was the first European to set
foot in the area and to recognize the best natural crossing of the Colorado River.
From the 1850s through the 1870s, steamboats on the Colorado River transported passengers and goods to mines,
ranches, and military outposts in the area, serving the ports of Yuma, Laguna, Castle Dome, Norton’s Landing,
Ehrenberg, Aubry, Ft. Mohave, and Hardyville.
For many years, Yuma served as the gateway to the new western territory of California. In 1870, the Southern
Pacific Railroad bridged the river, and Yuma became a hub for the railroad and was selected as the county seat.
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THE REPORTING ENTITY (Concluded)
Much of Yuma County is desert land accented by rugged mountains. The valley regions contain an abundance of
arable land, which is irrigated by the Colorado River.
Local Economy: Agriculture, tourism, military and government are the county’s principal industries. During the
winter months, the population nearly doubles with part-time residents, commonly known as “snow birds”. Although,
the State of Arizona is now starting to recover from recession, the recovery effects are not expected to be seeing in
Yuma County for a couple more years. It is expected that revenue will remain at the same level for the next couple
of years, as the economy continues to correct itself. The County is also monitoring expenditures and working with
all levels of staff to continue to provide the services desired or mandated with the available resources.
Organization: A five-member Board of Supervisors (the Board) carries out the governmental and administrative
affairs of the County. Each member is elected from a designated district to serve a four-year concurrent term. The
Board members collectively select the chair. The Board is responsible for establishing the policies of the County to
provide guidance to the various County departments, and appointing a County Administrator who is responsible for
the general administrative and overall operations of the various departments of the County. Additionally, the Board
furnishes budget authority to all other County Elected Officials and the Court System.
Entity defined: Yuma County includes in its financial statements all funds, agencies, trusts, boards, commissions,
and authorities for which the Yuma County Board of Supervisors is financially accountable. In accordance to
Governmental Accounting Standards Board (GASB) No. 14, The Financial Reporting Entity: financially accountable
includes, but is not limited to: selection of governing authority, designation of management, ability to significantly
influence operations, financial interdependence, and accountability for fiscal matters. Various school districts and
certain special districts within Yuma County are governed independently. The financial statements of these districts
are not included in this report except to reflect amounts held in an agency / trust capacity by the County Treasurer.
Services provided: Yuma County provides an ample range of governmental and community services. These
services can be divided into two categorizations: mandated and optional. Mandated services are services that the
County is required to provide by either Federal or State legislative bodies. Optional services are services that the
County is not required to provide, but chooses to do so for the overall benefit of its citizens, as guided by the
citizens.
Mandated: Superior and Justice Courts, Adult and Juvenile Probation / Detention, Law Enforcement, Public and
Legal Defenders, Recording of Deeds, Indigent health and mental health care, Immunization and disease control,
Sanitation inspections, Rabies and vector control, Treasure functions, Land use planning and zoning, Building code
enforcement, Elections and Voter registration, School Superintendent, and Road maintenance.
Optional: Libraries, Parks, Solid waste collection, Improvement districts, New road construction, Cable TV
franchise, AIDS / cardiovascular injury prevention programs, Flood control, Emergency management (other than for
hazardous materials), Public housing, Economic development, and Job training.
FINANCIAL INFORMATION
Accounting Policy: Yuma County maintains accounts in accordance with the principles of fund accounting to
ensure that limitations and restrictions on the County’s available resources are observed and adhered to. Fund
accounting classifies resources into funds with respect to the intended activities or objectives specified by those
resources for accounting controls and financial reporting purposes. Each fund is an independent fiscal and
accounting entity, and its operations are accounted for in a separate set of self-balancing accounts that are
comprised of assets, liabilities, fund equity, revenues, and expenditures or expenses.
There is no limit to the number of funds a government may establish and maintain for accounting and financial
reporting. A generally practiced governmental accounting guideline is that a government should use the smallest
number of individual funds as possible, consistent with its particular circumstances, and individual funds are closed
when its intended purpose is no longer operating. A description of the fund categories used by the County follows:
Governmental Funds: These funds are used to account for all of Yuma County’s expendable financial resources,
except for those reported in the Internal Service funds. The measurement focus is on determination of financial
position rather than determination of income. The modified accrual basis of accounting is used for these funds.
The County’s General, Special Revenue, Debt Service, and Capital Projects funds are included in this fund
category.
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FINANCIAL INFORMATION (Concluded)
General Fund: The General Fund is the primary operating fund. It accounts for all financial resources of
Yuma County, except for those required, either by rule of statute or U.S. GAAP, to be accounted for
elsewhere, or chosen to do so for internal tracking purposes.
Special Revenue Funds: Special Revenue Funds account for unique revenue sources legally restricted by
statute, ordinance, or other specific requirements to finance specific functions or activities.
Debt Service Funds: These funds are used to account for the resources accumulated for the payment of
interest, principal, and related costs on long-term debt, special assessments, and capital leases. This fund
type is not used to account for the outstanding debt itself.
Capital Projects Funds: Yuma County uses Capital Projects Funds to account for the acquisition and
construction of major capital activities, and establishes a separate fund for each individual construction
project or revenue source. The majority of these funds compositions have imposed restrictions similar to the
Special Revenue Funds, but due to their capital nature they are accounted for as Capital Projects Funds.
Proprietary Funds: These funds are used to account for the County’s ongoing activities that can be viewed as
similar to the private sector. Measurement focus is on determination of income, financial position, and changes in
financial position. The full accrual basis of accounting is used for these funds.
Internal Service Funds: Yuma County uses Internal Service Funds to account for: IT Life Cycle
Management Fund to ensure the County maintains a three year cycle on computer systems; a Revolving
Fund used to cover costs, expenses, and salaries associated with improvements made to Improvement
Districts; a Workers Compensation Fund established to operate on a self-funded basis, a Health Self –
Insurance Fund established to account for the financing of a self-funded benefit plan, and a Liability Self-
Insurance Fund established to account for the departmental funded insurance liability plan.
Fiduciary Funds: These funds are used to account for assets held by the County in a trustee or agency capacity.
Fiduciary funds account for assets held by the County Treasurer on behalf of others and are either Investment Trust
Funds or Agency Funds which are custodial in nature and do not involve measurement of results of operations.
The accrual basis of accounting is used for these funds.
Internal Control: In regard to accounting, internal controls are designed to provide reasonable (not absolute)
assurance that:
(1) Assets are safeguarded against loss from unauthorized use, theft, or disposition; and
(2) The reliability of financial records for preparing financial statements and maintaining accountability for assets.
Implemented internal control mechanisms should recognize the cost of maintaining control procedures and should
not exceed the benefit derived as a result of their adherence. The evaluation of costs and benefits requires
estimates and judgments by the County’s management. It should also be recognized that all internal control
policies and procedures are inherently vulnerable to conspiracy, collusion, and deliberate management override.
BUDGETARY CONTROLS
Yuma County complies with Arizona Revised Statutes (A.R.S.) by operating under a balanced budget and
appropriating all available resources. The County stays within State regulated levy and expenditure limitations.
With this principle, the measure of financial performance is monitored by the realization of estimated revenues and
abiding by the appropriations during the budget year.
Budgetary Basis: Yuma County prepares its budget using accounting principles consistent with its financial
reporting methods. Revenues are recognized when they are both available and measurable. For this purpose the
County considers revenues to be available if they are collected within 60 days after the fiscal year end. Open
encumbrances lapse at fiscal year end.
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BUDGETARY CONTROLS (Concluded)
Budget Administration: Yuma County administration monitors the County’s budget at the fund level for Special
Revenue, Debt Service, and Internal Service Funds. The General Fund and Capital Project Funds are monitored at
the department and project level, respectively. The budget is modified throughout the year as additional resources
become available or anticipated resources dissipate, if permitted under A.R.S. 42-17105 and 42-17106. This
methodology ensures all available resources are accounted for with appropriate budgetary controls, and only
available resources are disbursed or encumbered.
MAJOR INITIATIVES
The management of Yuma County is committed to continuing to find ways to reduce taxpayers’ cost for providing
the services desired by its constituents, meeting increasing operating costs for those services and statutorily
required activities, and accomplishing this within the constraints placed upon the County through statutory
limitations and declining revenues from outside sources. The management staff within Yuma County has exhibited
an unprecedented spirit of cooperation over the past years in devising ways to limit their own departmental
spending. This commitment toward providing more cost effective services shows the strong character of Yuma
County’s leadership and will enable Yuma County to serve its constituents in a manner which is economically
responsible in the current economic situation. Management is striving to maintain Yuma County’s cash reserve at
an appropriate level to provide financial stability for the County and its constituents. Another major goal is to
maintain a structural balance between recurring revenues and expenditures. It is the County’s desire to use one-time
revenues to provide for special projects. Finally, on March 2012 the Board of Supervisors approved
construction of a new building to be located in the east side of the County and will serve as satellite office to provide
services to east county constituents. Funding for the new building was secured by issuing revenue bonds.
LONG-TERM FINANCIAL PLANNING
Total fund balance in the General Fund (26.0% of total General Fund revenues) currently exceeds the policy
guidelines of 15 percent of total General Fund revenues set by the Yuma County Board of Supervisors for
budgetary and planning purposes. This level of fund balance has to do with a conservative expending philosophy
implemented by management for the last three fiscal years, to continue maintaining healthy reserves. Yuma
County attempts to use existing resources and available funds to reduce its outstanding liabilities, proof of that are
additional principal payments to improvement districts loans ($25,000 to El Prado; $50,000 to El Prado WIFA; and
$100,000 to Gadsden USDA loans). The County continues to reduce debt and plans to continue being conservative
in its spending for the next few years, until the economic conditions improve. County’s management has also
reduced the number of capital projects in an effort the redirect funds to cover more pressing and mandated services.
The few existing projects are expected to be completed with funds other than local sources while any new projects
will be critically reviewed prior to any decisions being made.
RELEVANT FINANCIAL POLICIES
Yuma County has the policy of keeping recurring expenditures at or below recurring revenues and using one-time
revenues for one-time projects. Additionally the County tries to maintain reserves at a minimum of 15 percent of
General Fund revenues. This allows the County to fund one time projects on a cash basis and keep debt to a
minimum. The County has traditionally had a conservative viewpoint toward taxation of its constituents and has
strived to reduce tax levies even during periods of reduced assessed values. It has maintained a level of taxation
below the maximum level allowed when all other counties within the State were taxing to the maximum level. With
the imposition of the 2% increase limit in the taxes levied on existing property plus new construction approved by
voters on November 7, 2006 in a statewide referendum, this has required the County to levy taxes on property at its
maximum level. The County has asked for and received total cooperation from all of its departments concerning a
voluntary restriction on expenditures and replacement of employees, except where absolutely necessary. This
resulted in a 26.14% reversion on all governmental funds including a 6.46% reversion in the General Fund from
actual to budgeted expenditures. While many other agencies throughout the State have had layoffs and mandatory
cuts in expenditures, Yuma County has been able to work with all levels in the County to achieve its cuts by
voluntary actions.
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CASH MANAGEMENT
The Yuma County Treasurer is responsible for cash management and investments for the County. Most cash
assets of the County, other than impress accounts, are on deposit through this office. Cash that is temporarily idle
during the year is invested on a short-term basis.
INDEPENDENT AUDIT
Pursuant to Arizona Revised Statutes, the Auditor General has contracted with the accounting firm of Fester &
Chapman P.C. to perform an audit of Yuma County’s financial statements for fiscal year ended June 30, 2012. The
results of this audit are outlined in the Independent Auditors’ Report that is included in the Financial Section.
AWARDS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to Yuma County for its comprehensive annual financial report (CAFR) for the fiscal year ended
June 30, 2011. This was the eleventh consecutive year that Yuma County has received this prestigious award. In
order to be awarded a Certificate of Achievement, Yuma County published an easily readable and efficiently
organized CAFR. This report satisfied both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR continues to meet
the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its
eligibility for another certificate.
GFOA has also given an Award for Outstanding Achievement in Popular Annual Financial Reporting to Yuma
County for its Popular Annual Financial Report for fiscal year ended June 30, 2011. The Award for Outstanding
Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with
the highest standards for preparation of state and local government popular reports. In order to receive this award,
a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards
of creativity, presentation, understandability, and reader appeal.
In addition, Yuma County received the GFOA’s Distinguished Budget Presentation Award for its annual budget
document for fiscal year 2011-2012. In order to qualify for the Distinguished Budget Presentation Award, Yuma
County’s budget document was judged to be proficient in several categories, including as a policy document, a
financial plan, an operations guide, and a communications device.
ACKNOWLEDGMENTS
The presentation of this report would not have been possible without the efficient, effective, dedicated, and
supportive services of the entire staff of the Financial Services Department. Their bestowed efforts to enhance
procedures, ensure accuracy, improve systems, and conduct extensive research have allowed for the completion of
the annual audit and this report.
We would like to express our appreciation to all members of all other agencies assisting and contributing to the
preparation of this report. Credit also must be given to the Board of Supervisors and the Administration for their
unsurpassable support for maintaining and strengthening the utmost standards of professionalism in the
management of Yuma County.
Respectfully submitted,
Scott G. Holt Gilberto Villegas Jr.
Director – Financial Services. Deputy Director- Financial Services
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Yuma County Government
Court Commissioners
Court Administrator
Adult Probation
Superior Court , Div. 1
Presiding Judge
Superior Court
Divisions 2,3, & 4
Juvenile Court Services
Superior Court
Division 5
Clerk of the
Superior Court
Justice Court Administrator
Justice of the Peace
Precinct 1
Justices of the Peace
Precincts 2 & 3
Constables
Precincts 1,2 & 3 Flood Control District
Operations
Development Services Health
Elections Information Technology
Facilities Management Legal Defender
Financial Services Library District
Housing Public Defender
Human Resources Public Works
Public Fiduciary
County Administrator
Board of Supervisors Assessor County Attorney
Recorder School
Superintendent
Jail District
Operations
Sheriff Treasurer
People of Yuma County
LEGEND
= Elected officials
Note A: The Superior Court Presiding Judge also exercises administrative supervision over all Superior Court personnel.
Note B: The Board of Supervisors has budget authority over all organizational units, including those of elected officials.
Note C: The Board of Supervisors is also the governing board of the Library District, Flood Control District, Health Services
District & the Jail District.
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FINANCIAL SECTION
The Financial Section contains all basic financial statements and supplementary information
required to be disclosed by GAAP (Generally Accepted Accounting Principles) and Arizona State
Law, as well as information on all individual funds not reported separately in the basic financial
statements. Also in this section is other useful supplementary information that is not required by
GAAP or Arizona State Law to represent a financial overview of Yuma County.
The following is contained in the Financial Section:
Independent Auditors’ Report 13 - 15
Management’s Discussion and Analysis 17 - 25
Basic Financial Statements:
Government-Wide Financial Statements 29 - 31
Fund Financial Statements 33 - 46
Notes to Financial Statements 47 - 72
Required Supplementary Information 73 - 91
Other Supplementary Information 93 - 212
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Independent Auditors’
Report
13
4001 North 3rd Street
Suite 275
Phoenix, AZ 85012-2060
Tel: (602) 264-3077
Fax: (602) 265-6241
14
Independent Auditors’ Report
The Auditor General of the State of Arizona
The Board of Supervisors of
Yuma County, Arizona
We have audited the accompanying financial statements of the governmental activities, each
major fund, and aggregate remaining fund information of Yuma County, Arizona (the County) as
of and for the year ended June 30, 2012, which collectively comprise the County’s basic
financial statements as listed in the table of contents. These financial statements are the
responsibility of the County’s management. Our responsibility is to express opinions on these
financial statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, each major fund, and aggregate
remaining fund information of Yuma County as of June 30, 2012, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in conformity
with U.S. generally accepted accounting principles.
U.S. generally accepted accounting principles require that the Management’s Discussion and
Analysis on pages 17 through 25, the Budgetary Comparison Schedules on pages 76 through 84,
the Schedule of Agent Retirement Plans’ Funding Progress on pages 86 through 88, and the
Infrastructure Assets information on pages 90 and 91 be presented to supplement the basic
15
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with U.S. generally accepted auditing standards, which
consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County’s basic financial statements. The combining and individual
fund statements and schedules and the introductory and statistical sections listed in the table of
contents are presented for purpose of additional analysis and are not required parts of the basic
financial statements. Such information is the responsibility of the County’s management and was
derived from and relates directly to the underlying accounting and other records used to prepare
the basic financial statements. The combining and individual fund statements and schedules have
been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with
U.S. generally accepted auditing standards. In our opinion, the combining and individual fund
statements and schedules are fairly stated in all material respects in relation to the basic financial
statements as a whole. The introductory and statistical sections have not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do
not express an opinion or provide any assurance on them.
In connection with our audit, nothing came to our attention that caused us to believe that the
County failed to use highway user revenue fund monies received by the County pursuant to
Arizona Revised Statutes Title 28, Chapter 19, Article 2, and any other dedicated state
transportation revenues received by the County solely for the authorized transportation purpose.
However, our audit was not directed primarily toward obtaining knowledge of such
noncompliance.
In accordance with Government Auditing Standards, we will also issue our report on our
consideration of the County’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters at a future date. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
16
This report is intended solely for the information and use of the members of the Arizona State
Legislature, the Auditor General of the State of Arizona, the Board of Supervisors, management,
and others within the County 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.
January 4, 2013
FINANCIAL
SERVICES
DEPARTMENT
Scott G. Holt
Director
198 South Main Street
Yuma, Arizona. 85364
Voice (928) 373-1012
FAX (928) 373-1152
Gil Villegas Jr.
Deputy Director
Management’s Discussion and Analysis
As management of Yuma County, we offer readers of Yuma County’s financial statements this narrative overview
and analysis of the financial activities of Yuma County for the fiscal year ended June 30, 2012. We encourage
readers to consider the information presented here in conjunction with additional information we have furnished in
our letter of transmittal, which can be found on pages 3 to 7 of this report.
FINANCIAL HIGHLIGHTS
 The total assets of Yuma County exceeded its liabilities at the close of the most recent fiscal year by
$379,217,671 (net assets). Of this amount, $28,128,486 (unrestricted net assets) may be used to meet the
government’s ongoing obligations to citizens and creditors.
 Yuma County’s total net assets increased by $12,791,492. The increase was primarily due to an increase in
assets held by trustee upon the deposit of funds from a bond issuance to finance the construction of an East
County facility ($2.4 million); an increase in net capital assets ($8.4 millions); and a $1.2 million reduction in
operating expenses.
 Within the revenues category; The County’s Sales Taxes are divided among three restricted categories:
general, jail, and health services; 0.5 percent on each dollar for each category except for the health services
which receives 0.1 of a cent on each dollar. The total of these categories increased from the prior year by
$1,228,874 or 5.2%, a reflection of a possible recovery of the local economy after years of decreases. The
State Shared Sales tax had also a modest increase of $670,563 (4.0%) from the prior year. Also, an unusual
reduction in claims and judgments increased miscellaneous revenues by $820,195.
 The County property taxes levied for all purposes (General Fund, Library and Flood districts) increased only
$864,330 or 2.3%, as a result of current economic conditions and assessed values paired with the rest of the
State. Again property tax for the General Fund experienced the most significant increase of $1,088,364 or
4.7% from the prior year.
 At the end of the fiscal year, Yuma County’s governmental funds reported combined ending fund balances of
$87,599,221, an increase of 3.3% or $2,834,513 in comparison with the prior year. Fiscal year end 2012 fund
balances are categorized as follows: 0.3% or $296,905 is Nonspendable; 74.4% or $65,147,313 is Restricted;
11.6% or $10,189,457 is Committed; 1.3% or $1,149,959 is Assigned; and 12.4% or $10,815,587 is
Unassigned, which means funds are available for spending at the government’s discretion within the
boundaries set forth in the governmental fund’s purposes.
 Of the Major funds reported; The Health Services District Fund experienced the largest decrease in fund
balance ($305,933). The main reason that drove the decrease was because the minimal increase in revenues
of 5.28% was not sufficient to cover the expenditures increase for the required services. During the current
fiscal year, it was decided to separate operations from grant activities within the district. On the other hand; the
Flood control district fund experienced the largest increase in fund balance of $2,173,492 or 14.1%. The
increase resulted from savings related to construction projects placed on hold due to stagnant and uncertain
economic activity. The Capital Projects funds also experienced a significant increase in fund balance this fiscal
year $2,105,979 or 85.6% as compared with last year. The main reason for the increase in capital projects was
due to the proceeds received for the construction of a facility in East County.
 At the end of the fiscal year, total fund balance for the General Fund was $17,928,734 (2.5% decrease) or
25.7% of total General Fund expenditures and transfers out. The decrease of $467,710 was mainly due to the
yearly minimal revenues increase of $536,135 or 0.78%; combined with the increase in operational
expenditures of $2,016,910 or 3.4%. Increase in expenditures was driven by Medical Eligibility (Welfare)
services’ increase of $2,146,332 or 24.5%.
17
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to Yuma County’s basic financial statements.
Yuma County’s basic financial statements consist of three components:
1) Government-wide financial statements,
2) Fund financial statements, and
3) Notes to financial statements.
This report also contains required and other supplementary information in addition to the basic financial statements.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview of Yuma County’s
finances, in a manner similar to a private-sector business. This includes the government-wide statement of net
assets and the statement of activities listed below.
The statement of net assets presents information on all of Yuma County’s assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of Yuma County is improving or deteriorating.
The statement of activities presents information showing how Yuma County’s net assets changed during the most
recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement
for some items which will only result in cash flows in future fiscal periods (such examples are uncollected taxes and
earned but unused vacation leave).
The government-wide financial statements distinguish functions of Yuma County principally supported by taxes and
intergovernmental revenue (governmental activities) from other functions which are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental
activities of Yuma County include general government, public safety, highway and streets, sanitation, health,
welfare, culture and recreation, education, and interest on long-term debt. The government-wide financial
statements can be found on pages 29 to 31 of this report.
Fund financial statements
A fund is a grouping of related accounts used to maintain control over resources segregated for specific activities or
objectives. Yuma County, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances
of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
Because the focus of governmental funds is narrower than the government-wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental
activities in the government-wide financial statements. By doing so, readers may better understand the long-term
impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
Yuma County maintains one hundred twenty one (121) governmental funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the general fund; capital improvements fund; jail district’s general operations fund; the
library district’s general operations fund; flood control district general operations fund; the health services district
general operations fund; the development services highway users revenue fund (HURF), and the improvement
district B & C Colonia debt service fund, all of which are considered to be major funds. These financial statements
can be found on pages 33 to 41 of this report. Data from the other one hundred and thirteen (113) governmental
funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements and schedules on pages 105 to 200.
Yuma County adopts an annual appropriated budget for all of its governmental funds. Budgetary comparison
schedules have been provided to demonstrate compliance with these budgets.
18
Fund financial statements (Concluded)
Proprietary funds are used to account for Yuma County’s internal service funds, which is a device to accumulate and
allocate costs internally among Yuma County’s various functions. Yuma County uses internal service funds to
account for the Information and Technology (IT) life cycle management, revolving fund for improvement districts,
workers compensation insurance, health self-insurance and liability self-insurance fund.
Because these services predominantly benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements. Proprietary funds provide the
same type of information as the government-wide financial statements. Internal service funds are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund
financial statements can be found on pages 42 to 44 of this report.
Fiduciary funds are used to account for resources held for the benefit of parties outside the primary government
(Yuma County). Fiduciary funds are not reflected in the government-wide financial statements because their
resources are not available to support Yuma County’s own programs. The accounting used for fiduciary funds is
similar to that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 45 to
46 of this report.
Notes to financial statements
The notes provide additional information essential to a full understanding of the data provided in the government-wide
and fund financial statements. The notes to financial statements can be found on pages 47 to 72 of this
report.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning Yuma County’s progress in funding its obligations to provide pension benefits to
its employees, as well as schedules illustrating the County’s compliance with legally adopted budgets and an
explanation of the County’s application of the modified approach to the reporting of infrastructure assets. Required
supplementary information can be found on pages 73 to 91 of this report.
The combining statements referred to earlier in connection with non-major governmental funds and internal service
funds as well as budgetary comparison schedules for other major funds are presented immediately following the
required supplementary information. Combining and individual fund statements and schedules can be found on
pages 95 to 208 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the
case of Yuma County, assets exceeded liabilities by $379,217,671 at the close of this fiscal year.
By far the largest portion of Yuma County’s total net assets, $286,593,510 (75.6%), is invested in capital assets
(land, buildings, improvements other than buildings, machinery and equipment, infrastructure, and construction in
progress), net of the related debt used to acquire those assets that is still outstanding, and accumulated
depreciation. The County uses these capital assets to provide services on behalf of Yuma County’s citizens;
consequently, these assets are not available for future spending. Although the County’s investment in its capital
assets is reported net of related debt, it should be noted the resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The County’s net assets increased $12,791,492 during the current fiscal year. Total assets increased $8,728,383
or 2.0% from last fiscal year. The assets increase is largely due to the increase of $8,402,924 in capital assets,
mostly from donated roads to the County. Investment held by trustee increased $3,081,610 due to proceeds of
bonds issued for a capital project and to defease the 2007 Jail district revenue bonds issue.
An additional portion of Yuma County’s net assets, restricted net assets of $64,495,675 or 17.0%, represents
resources subject to external restrictions on how they may be used. The unrestricted net assets balance
($28,128,486) may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of
the current fiscal year, Yuma County reported positive balances in all three categories of net assets.
19
Government-wide financial analysis (Concluded):
Below is a brief summary of County’s statement of net assets:
Below is a brief summary of Yuma County’s change in net assets:
2012 2011
Cash, cash equivalents and investments $ 88,272,595 $ 93,361,521
Investments held by trustee – restricted 3,899,185 817,575
All other current and other assets 15,773,449 13,440,444
Capital assets 346,201,764 337,799,070
Total assets $ 454,146,993 $ 445,418,610
Long-term liabilities outstanding $ 68,172,610 $ 67,440,739
Other liabilities 6,756,712 11,551,692
Total liabilities $ 7 4,929,322 $ 78,992,431
Invested in capital assets, net of related debt $ 286,593,510 $ 277,357,668
Restricted 64,495,675 51,932,168
Unrestricted 28,128,486 37,136,343
Total net assets $ 379,217,671 $ 366,426,179
YUMA COUNTY
Condensed Statements of Net Assets
As of June 30, 2012 and 2011
Governmental Activities
2012 2011
Charges for services $ 11,018,049 $ 11,626,293
Operating grants and contributions 36,579,844 38,885,744
Capital grants and contributions 11,519,306 17,969,458
Property taxes 38,788,697 37,924,367
Other county taxes:
County sales tax 24,965,329 23,736,455
Franchise tax 180,411 186,550
Auto in lieu tax 6,358,376 6,727,463
State shared sales taxes 17,349,424 16,678,861
Grants and contributions not restricted to 3,954,280 3,932,483
Investment earnings 646,064 1,103,459
Miscellaneous 2,510,793 1,690,598
153,870,573 160,461,731
44,961,830 45,977,581
40,778,911 41,268,389
11,148,656 11,610,502
892,460 911,775
9,121,693 9,043,830
15,570,314 13,728,818
8,995,200 8,453,590
6,983,411 8,641,568
2,626,606 2,608,233
141,079,081 142,244,286
12,791,492 18,217,355
366,426,179 348,208,824
Net assets - ending June 30 $ 379,217,671 $ 366,426,179
Education
Interest on long-term debt
Total expenses
Increase in net assets
Net assets - beginning July 1
Highway and streets
Sanitation
Health
Welfare
Culture and recreation
Total revenues
Expenses:
General government
Public safety
As of June 30, 2012 and 2011
Governmental Activities
Revenues:
Program revenues:
General revenues:
YUMA COUNTY
Condensed Statements of Activities
20
Governmental activities (concluded)
Key elements contributing to the $12,791,492 increase in change in net assets are as follows:
 Overall, the continued effective and timely implementation of measures to reduce the operational expenses,
contributed to the increase in net assets for fiscal year ended June 30, 2012. Total expenses decreased
($1,165,205) or (0.8%), primarily due to management’s continuing conservative spending recommendations.
However, those reductions were offset by the mandated increases in Health, Welfare, and Cultural functions.
 The Education function and the General government function reduced their expenditures by ($1,658,157) or
(19.2%) and ($1,015,751) or (2.2%) respectively. Their reduction is attributable to management’s
commitment to reduce expenditures for a better financial position beginning in fiscal year 2013.
 Although total revenues decreased by (4.1%) or ($6,591,158), there were enough collections in the current
fiscal year to record the increase in net assets. The revenue categories with the most significant decreases
were in the Capital Grants and Contributions ($6,450,152) or (35.9%) and Operations Grants and
Contributions ($2,305,900) or (5.9%). This is consistent with prior years’ reductions of available grants and
funds as every year due to current economic conditions there are less grants available for Capital projects.
 Despite of reduction in grants contributions; there was a $2,773,138 increase in the General Revenues. This
increase was mainly driven by the increases in taxes collected and miscellaneous revenues. The County’s
sales taxes increased $1,228,874 or 5.2%; property taxes increased $864,330 or 2.3% (the growth was
primarily from the increase in the primary tax rate to offset the decreasing assessed value and new
construction); and State’s shared sales taxes increased $670,563 or 4.0% (after four consecutive years or
decreases). This may be an indication that both the local and State’s economy are starting to improve.
38,788,697
36,579,844
24,965,329
17,349,424
11,519,306
11,018,049
6,358,376
3,954,280 2,510,793 646,064 180,411
Government‐Wide Revenues by Source
Property taxes Operating grants and contributions County sales taxes
State shared sales taxes Capital grants and contributions Charges for services
Auto in lieu tax Grants & contributions-not restricted Miscellaneous
Investment earnings Franchise tax
44,961,830
40,778,911
15,570,314
11,148,656
9,121,693
8,995,200
6,983,411
2,626,606 892,460
Government‐Wide Expenses by Category
General government Public safety Welfare
Highway & streets Health Culture & recreation
Education Interest on long-term debt Sanitation
21
FINANCIAL ANALYSIS OF YUMA COUNTY’S FUNDS
Yuma County uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. The County implemented the provisions of GASB Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions (see Note 1, summary of significant Accounting Policies). Since this is the
second year of implementation, the comparative analysis and discussion of the fund balance classifications
between the years might not be meaningful.
Governmental funds
The focus of Yuma County’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing Yuma County’s financing requirements.
In particular, fund balance may serve as a useful measure of a government’s net resources restricted, committed,
assigned, and available for spending at the end of the fiscal year.
All governmental funds: At the end of the current fiscal year, the County’s governmental funds reported combined
ending fund balances of $87,599,221, an increase of $2,834,513 (3.3%) in comparison with the prior year. Fiscal
year end 2012 fund balances are categorized as follows: 0.3% or $296,905 Nonspendable; 74.6% or $65,347,046
is Restricted, meaning that amounts are subject to external enforceable legal restrictions; 11.6% or $10,189,457
are Committed to self-imposed constraints by the Board of Supervisors; 1.3% or $1,149,959 Assigned or “ear
marked” by management for specific purposes and 12.1% or $10,615,854 Unassigned, which means funds are
available for spending at the government’s discretion.
Below is a year-to-year comparison of Yuma County’s governmental funds revenues from all sources
Following are explanations of the key elements that contributed to the revenues decrease of (1.1%) or
($1,688,929) compared to the prior year:
 Intergovernmental revenues decreased (4.1%) from the prior the year. This is due to fewer grants
received through the federal recovery program for the completion of the B & C Colonial sewer project. As
the project draws near completion, fewer funds are drawn or needed from grantors.
 Investment income again decreased (41.0%) due to the reduction of invested funds. As revenues fail to
be generated, departments need the cash flow to support operational activities. Also, the continuing very
poor returns on investments contributed to the decrease.
 Taxes, primarily local taxes, increased 2.5% from prior year. Property and local sales taxes experienced
a combined increase of $1,717,978, an indication the local economy continues to reflect the upward
movement in the economy. The State’s shared sales tax also increased, reflecting a possible overall
economic movement.
 The increase in special assessments is mainly due to the completion of the sewer lines project for B&C
Colonia improvement district. As the project was completed, special assessments are now needed to
begin paying for the portion of borrowed funds.
Amount Percent Amount Percent Amount Percent
Taxes $ 70,292,813 47.0% $ 68,574,835 45.3% $ 1 ,717,978 2.5%
Special assessments 572,462 0.4% 112,319 0.1% 460,143 409.7%
Licenses and permits 970,355 0.6% 1,057,715 0.7% (87,360) -8.3%
Intergovernmental 65,712,740 44.0% 68,532,952 45.3% (2,820,212) -4.1%
Charges for services 6,743,112 4.5% 7,086,558 4.7% (343,446) -4.8%
Fines and forfeits 3,003,379 2.0% 3,151,654 2.1% (148,275) -4.7%
Investment income 581,131 0.4% 984,739 0.7% (403,608) -41.0%
Rents 301,201 0.2% 330,365 0.2% (29,164) -8.8%
Miscellaneous 1,310,408 0.9% 1,345,393 0.9% (34,985) -2.6%
Total Revenues $ 149,487,601 100.0% $ 151,176,530 100.0% $ (1,688,929) -1.1%
2012 2011 Variance
Yuma County
Governmental Funds Revenues by Source
Years Ended June 30, 2012 and 2011
22
Governmental funds (Concluded)
Below is a year by year comparison of Yuma County’s governmental funds expenditures by function:
Below are explanations of the expenditures that changed significantly compared to prior year:
 Overall expenditures decreased, ($4,312,944) or (2.8%), as compared to prior year. The decrease in
expenditures was mainly due to management’s efforts to implement a conservative spending strategy
primarily among the general fund funded departments. It is management’s intention to continue with this
strategy until the economy fully recovers.
 Welfare expenses increased 14.1% due state mandated costs for medical eligibility services.
 Education expenses decreased, ($1,651,990) or (19.1%), as a result of reductions in funding from the
Recovery Act education (97%) and Workforce Investment Act (11.8% Reduction).
 The Capital outlay decrease, (24.9%) or ($4,875,302), was mainly due to fewer payments on the B & C
Colonial sewer project as previously discussed.
The General Fund is the chief operating fund of Yuma County. At the end of the current fiscal year, total fund
balance was $17,928,734. The net change in fund balance was a decrease of ($467,710) during the current fiscal
year. Revenues increased $1,536,135 or 2.28% which was primarily from the increase in property taxes, of
$1,049,742, resulting from the higher property taxes rate adopted. Expenditures increased $2,016,910 or 3.4%
primarily due to a 23.4% or $2,173,710 increase in welfare, as result of Title 36 payments (Mental Health Services).
This increase in expenditures was offset by decreases in other categories to achieve the net reduction stated
above.
All debt service funds had a combined fund balance at the end of the current fiscal year in the amount of
$4,740,574. This amount is dedicated to pay for future debt obligations of the outstanding Library General
Obligation bonds, the Jail District Revenue bonds, and various Special Assessment bonds. The County refunded
the 2007 Jail District Bonds by issuing new bonds extending the term of maturity and reducing the annual
payments required. The 2007 Bonds were set to mature in 2015 and the new bonds were issued for 10 years.
Only $167,298 is restricted as they represent the creditors required reserve for future payments in all Improvement
districts and the Jail district. The remainder funds are either committed for future debt service payments or
unassigned.
The capital projects funds have a combined fund balance of $5,223,620. The (25.4%) or ($941,559) decrease in
fund balance is primarily due to the transfer of funds ($2,879,570) to the Library Debt Service Fund from the Library
Capital Fund to fund future debt service payments as a result of earnings from interest on the bond proceeds
obtained for the construction of the new library facilities
Amount Percent Amount Percent Amount Percent
General government $ 42,582,154 28.5% $ 42,399,498 27.6% $ 1 82,656 0.4%
Public safety 38,624,854 25.8% 38,814,882 25.2% (190,028) -0.5%
Highway and streets 9,466,126 6.3% 9,855,973 6.4% (389,847) -4.0%
Sanitation 842,870 0.6% 854,966 0.6% (12,096) -1.4%
Health 8,781,513 5.9% 8,628,172 5.6% 1 53,341 1.8%
Welfare 15,184,030 10.1% 13,308,587 8.6% 1 ,875,443 14.1%
Culture and recreation 7,514,881 5.0% 7,404,440 4.8% 1 10,441 1.5%
Education 6,975,040 4.7% 8,627,030 5.6% (1,651,990) -19.1%
Capital outlay 14,713,004 9.8% 19,588,306 12.7% (4,875,302) -24.9%
Debt service:
Principal retirement 2,296,887 1.5% 1,830,822 1.2% 4 66,065 25.5%
Interest and fiscal charges 2,626,606 1.8% 2,608,233 1.7% 1 8,373 0.7%
Total Expenditures $ 149,607,965 100.0% $ 153,920,909 100.0% $ (4,312,944) -2.8%
Years Ended June 30, 2012 and 2011
2012 2011 Variance
Yuma County
Governmental Funds Expenditures by Function
23
GENERAL FUND BUDGETARY HIGHLIGHTS
During fiscal year, 2012 there were no significant variances between the adopted and final budget amounts.
General government reduced its budget authority by $239,141 to transfer authority to welfare ($167,103) in order to
account for increments on AHCCCS’ costs; the remainder $72,038 and additional budget authority from public
safety in an amount of $62,516, were transferred to other financial uses- transfer out for additional funds needed
for capital improvements projects.
At the close of the current fiscal year, Yuma County General Fund received a total of $1,980,268 more revenues
than budgeted. This was due to an unexpected increase in tax revenues ($891,242 property taxes and $499,017
Sales Taxes). Also, State shared revenues had a positive increase of $642,638. This may be an indication that the
economy is starting to turn around.
Yuma County General Fund had $4,292,279 less expenditures than budgeted. For the second year, the General
Government function had the most significant positive variance between budgeted and actual, it amounting to
$3,683,646. This is a reflection of management’s strategies to limit expenditures in all General Fund departments
including a mandatory 2% expenditure reduction.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets
Yuma County’s investment in capital assets for its governmental activities at June 30, 2012 amounts to
$346,201,764 (net of accumulated depreciation). This investment in capital assets includes land, buildings,
improvements other than buildings, machinery and equipment, infrastructure, and construction in progress.
The total increase in Yuma County’s net capital assets for this fiscal year was 2.5% or $8,402,694. This is mainly
for the donations of roads and rights-of-way from local developments (as developed sub-divisions are turned over
to County for maintenance), and additional funding received from pledged revenues bond issuance for the
construction of a new facility to be located East of Yuma County. Additional information on Yuma County’s capital
assets can be found in note 7 on pages 58-59 of this report.
As provided by GASB Statement No. 34, Yuma County has elected to record its Asphalt Pavement Roads,
Infrastructure Subsystem, using the “Modified Approach”. Assets accounted for under the modified approach
include approximately 581.69 center lane miles of paved roads the County is responsible for maintaining. The
County manages its roads using the Pavement Management System, which measures the condition of the
pavement and its ability to serve the traveling public. The Pavement Management System is composed of various
factors evaluating distress and quality, which when combined provides a unit of measurement called “Overall
Condition Index” (OCI). OCI uses a one hundred-point scale (100 Excellent, 0 Needs immediate work) to
characterize the condition of the paved roadway. Yuma County has committed to an average OCI level of 65 for the
overall subsystem. The most recent assessment indicates that an overall average rating of 74.71 was achieved for
fiscal year 2012. There are no significant changes contemplated for adjusting either the committed OCI level, or the
application of the Pavement Management System. Refer to pages 90 through 91 for a complete disclosure of the
Modified Approach.
Long-term debt
At the end of current fiscal year, Yuma County had total bonded debt outstanding of $58,078,967, of which
$56,107,127 is considered long-term and $1,971,840 payable within one year. This amount is comprised of
$10,435,000 of revenue bonds; $46,755,000 of general obligation bonds backed by property tax collections of the
Yuma County Library District; $43,400 in special assessment bonds for which the government is liable in the event
of default by the property owners subject to the assessment; and $845,567 unamortized premiums resulting from
the defeasement of the 2007 Jail district revenue bond. The County also has $3,616,115 in Rural Development
loans, of which $3,455,657 are considered long-term. Additional information on the County’s long-term debt can be
found in notes 9-14 on pages 60-65 of this report.
Governmental Activities
Long-term debt 2012 2011
Revenue bonds $ 10,435,000 $ 8,525,000
General obligation bonds 46,755,000 47,875,000
Special assessment bonds
with governmental commitment 43,400 75,240
Rural development loan 3,616,115 3,924,887
Capital leases payable - 41,275
Premiums 845,567 -
Total $61,695,082 $60,441,402
24
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
Yuma County expects the collection of its major revenue sources (local sales tax, state shared sales tax, and auto
in lieu tax) to continue in a normal very moderate growth mode based on observed economic activity in the
national, local and state economies. After several years of retrenching in revenue sources at both the local and
state levels, the County continues to experience a moderate but important increase in tax revenues which
constitute 58.6% of the counties total revenues. Property tax levy amounts are capped by statute at a maximum 2%
increase annually from the prior year’s levy amount plus the additional value contributed by new construction as a
result of a statewide voter action in November, 2006. These increases should be sufficient to continue funding of
the core operations of the County with astute financial management, if the Board of Supervisors elects to take
advantage of this available revenue source. Given the current observed economic trends management anticipates
this moderate growth rate to continue unless outside sources and factors intercede.
 The most recent estimates reflect the population of Yuma County continuing to grow; 2.4% for fiscal year
2012, while the unemployment rate is reported to be 25.4% for the calendar year 2011. Traditionally Yuma
County has a very high rate of unemployment, typically in the range of 14% to 16%, due to seasonal field
workers. However, due to the national recession, over the last three years the County continues in
averaging a 24.4% unemployment rate. We do not anticipate seeing a significant drop in this rate in the
foreseeable future. Our observations indicate a very moderate but sustained growth in the economic
factors for the local Yuma County economy barring any unforeseen actions by outside forces.
 The County continues its efforts to position itself in a minimum long term debt status. Administration
believes the continued reduction of long term debt not only saves the County on interest payments, but
also improves the County’s credit ratings and borrowing capacity for emergencies by keeping a low ratio of
debt to expenditures and revenues. In line with this policy the Jail District board of directors approved
during the fiscal year the refunding of the 2007 Series Bonds by refinancing the outstanding debt at a lower
rate and extending the maturity date to 2021 to facilitate a more manageable lower level of expenditures for
debt service payments by the jail district given the current economic conditions and its level of revenues.
 The County has for the last four years and continuing into fiscal year 2013 working with management at all
levels to responsibly minimize the operating costs within all levels of government given the continuing
trends of very moderate growth patterns within the economy nationally, statewide and locally. This year
the County saw a reversion of 26.96% of actual expenditures as compared to budget from all its
operational governmental units. The Yuma County Administration is continuing its efforts to control the
level of expenditures in an effort to maintain its position within the revenues being received without
significant impact to the service demands. The County saw a reduction of expenditures from Fiscal Year
2011 by 2.8% compared to a reduction in revenues of 1.2%.
 The nation, State and County appear to be in a recovery mode as a result of the recent recession. Yuma
County continues to take a very conservative but active attitude towards its activities as it responds to the
existing economic conditions along with the requirements and policies established by its governing body.
We are expecting this moderate growth trend to continue throughout the current fiscal year into the
following year.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of Yuma County’s finances for all those with an
interest in the government’s finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to either:
Scott G. Holt, Director, or Gilberto Villegas, Jr., Deputy Director-Financial Services, 198 South Main Street, Yuma,
AZ. 85364 (928) 373-1012.
25
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26
Basic Financial
Statements
27
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28
Government-Wide
Financial Statements
29
YUMA COUNTY Exhibit A- 1
Statement of Net Assets
Governmental
Activities
Cash, cash equivalents and investments $ 88,272,595
Receivables (net of allowances for uncollectibles):
Property taxes 1,896,317
Accounts 1,157,728
Special assessments 2,613,274
Accrued interest 90,203
Due from other governments 9,719,022
Inventory 10,028
Prepaid items 286,877
Investment held by trustee - restricted 3,899,185
Capital assets (net of accumulated depreciation):
Land 48,520,591
Buildings 139,900,951
Improvements other than buildings 9,601,037
Machinery and equipment 11,539,166
Infrastructure 110,024,091
Construction in progress 26,615,928
Total Assets $ 454,146,993
Accounts payable $ 3,387,387
Accrued payroll and employee benefits 1,379,319
Insurance claims payable 968,000
Due to other governments 9 0
Deposits held for others 409,604
Retainage payable 130,110
Unearned revenue 293,655
Interest and fiscal charges payable 188,547
Long-term liabilities:
Due within one year 5,964,009
Due in more than one year 62,208,601
Total Liabilities $ 74,929,322
Invested in capital assets, net of related debt $ 286,593,510
Restricted for:
Public safety 5,344,418
Highways and streets 38,279,501
Sanitation 423,787
Health 855,403
Culture and recreation 9,628,372
Capital projects 5,223,620
Debt service 4,740,574
Unrestricted 28,128,486
Total Net Assets $ 379,217,671
The notes to the financial statements are an integral part of this statement.
June 30, 2012
ASSETS
LIABILITIES
NET ASSETS
30
YUMA COUNTY Exhibit A- 2
Statement of Activities
Year Ended June 30, 2012
Net Revenues
(Expenses) and
Changes in
Net Assets
Operating Capital Total
Charges for Grants and Grants and Governmental
Expenses Services Contributions Contributions Activities
Governmental activities:
General government $ 44,961,830 $ 7,161,588 $ 2,156,453 - $ (35,643,789)
Public safety 40,778,911 2,462,699 9,166,014 - (29,150,198)
Highway and streets 11,148,656 44,381 10,133,167 $ 3,733,839 2,762,731
Sanitation 892,460 35,809 276,990 7,785,467 7,205,806
Health 9,121,693 865,286 4,210,745 - (4,045,662)
Welfare 15,570,314 351,361 3,282,915 - (11,936,038)
Culture and recreation 8,995,200 96,925 126,674 - (8,771,601)
Education 6,983,411 - 7,226,886 - 243,475
Interest on long-term debt 2,626,606 - - - (2,626,606)
Total governmental activities $ 141,079,081 $ 11,018,049 $ 36,579,844 $ 11,519,306 (81,961,882)
General revenues:
Taxes:
Property taxes, levied for general purposes 25,146,806
Property taxes, levied for the Library District 10,439,203
Property taxes, levied for the Flood Control District 3,202,688
Other County taxes:
County sales taxes for General Purposes 11,344,479
County sales taxes for Jail District 11,344,489
County sales taxes for Health Services District 2,258,309
County sales taxes for Capital Projects 18,052
Franchise tax 180,411
Unrestricted State Shared taxes :
Auto in lieu of tax 6,358,376
Sales taxes 17,349,424
Grants and contributions not restricted to specific programs 3,954,280
Investment earnings 646,064
Miscellaneous 2,510,793
Total general revenues 94,753,374
Change in net assets 12,791,492
Net assets, July 1, 2011 366,426,179
Net Assets, June 30, 2012 $ 379,217,671
The notes to the financial statements are an integral part of this statement.
Functions / Programs
Program Revenues
31
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32
Fund Financial
Statements
33
YUMA COUNTY
Balance Sheet
Governmental Funds
Jail Library
Capital District District
General Improvements General Operations General Operations
Cash, cash equivalents and investments $ 13,922,666 $ 1,592,881 $ 657,876 $ 9,758,471
Receivables (net of allowances for uncollectibles):
Property taxes 1,077,077 - - 541,336
Accounts 117,627 - 52,969 875
Special assessments - - - -
Accrued interest 16,972 1,722 1,483 9,952
Due from:
Other funds 2,026,537 711,002 - -
Other governments 3,433,499 1,281 1,737,619 -
Inventory - - - -
Prepaid items 266,480 - - 4,511
Investment held by trustee - restricted - 2,402,702 - 83,935
Total Assets $ 20,860,858 $ 4,709,588 $ 2,449,947 $ 10,399,080
Liabilities:
Accounts payable $ 792,677 $ 117,878 $ 208,911 $ 273,398
Accrued payroll and employee benefits 693,994 - 212,931 71,327
Due to:
Other funds 129,540 - 220,164 68,003
Other governments - - - -
Deposits held for others 143,175 - - 100
Retainage payable - 25,366 - -
Interest and fiscal charges payable - - - -
Revenue bonds payable - - - -
Deferred revenue 1,172,738 - - 452,849
Total Liabilities $ 2,932,124 $ 143,244 $ 642,006 $ 865,677
Fund balances:
Nonspendable $ 266,480 - - $ 4,511
Restricted 7,201,997 - $ 1,807,941 9,528,892
Committed - $ 4,566,344 - -
Assigned - - - -
Unassigned 10,460,257 - - -
Total fund balances 17,928,734 4,566,344 1,807,941 9,533,403
Total liabilities and fund balances $ 20,860,858 $ 4,709,588 $ 2,449,947 $ 10,399,080
The notes to the financial statements are an integral part of this statement.
June 30, 2012
Assets
Liabilities and Fund Balances
34
Exhibit B- 1
Flood Control Health Services Development Improvement Other Total
District District Services District B & C Governmental Governmental
General Operations General Operations HURF Colonia, Debt Srv Funds Funds
$ 17,920,660 - $ 16,349,253 $ 402,954 $ 18,332,292 $ 78,937,053
231,532 - - - 46,372 1,896,317
- - - 30,748 943,261 1,145,480
- - - 2,496,198 117,076 2,613,274
17,249 - 16,068 405 17,711 81,562
- $ 784,951 - - 411,773 3,934,263
- 346,203 556,526 - 3,643,894 9,719,022
- - - - 10,028 10,028
2,526 - 12,601 - 759 286,877
- - - - 1,412,548 3,899,185
$ 18,171,967 $ 1,131,154 $ 16,934,448 $ 2,930,305 $ 24,935,714 $ 102,523,061
$ 98,696 $ 25,221 $ 507,794 - $ 1,288,951 $ 3,313,526
6,318 41,671 24,091 - 320,544 1,370,876
254,631 585,244 419,587 $ 38,755 2,417,196 4,133,120
- - - - 90 90
- - 6,995 - 259,334 409,604
10,450 - 94,294 - - 130,110
- - - - 188,547 188,547
- - - - 795,000 795,000
201,368 - - 2,496,198 259,814 4,582,967
$ 571,463 $ 652,136 $ 1,052,761 $ 2,534,953 $ 5,529,476 $ 14,923,840
$ 2,526 - $ 12,601 - $ 10,787 $ 296,905
17,597,978 $ 479,018 15,869,086 $ 127,466 12,734,668 65,347,046
- - - 267,886 5,355,227 10,189,457
- - - - 1,149,959 1,149,959
- - - - 155,597 10,615,854
17,600,504 479,018 15,881,687 395,352 19,406,238 87,599,221
$ 18,171,967 $ 1,131,154 $ 16,934,448 $ 2,930,305 $ 24,935,714 $ 102,523,061
35
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36
YUMA COUNTY Exhibit B- 2
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets
Fund balance - total governmental funds $ 87,599,221
Amounts reported for governmental activities in the Statement of Net Assets are different
because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds. 346,201,764
Some receivables are not available to pay for current-period expenditures and, therefore,
are deferred in the funds. 4,289,312
Internal service funds are used by management to charge the costs of certain activities
such as insurance and maintenance and technology, to individual funds. The assets and
liabilities of the internal service funds are included in governmental activities
in the Statement of Net Assets:
IT Life Cycle Management $ 52,778
Revolving Fund 110,246
Workers Compensation 654,562
Health Self-Insurance 7,512,654
Liability Self-Insurance 174,744
Total 8,504,984
Long-term liabilities are not due and payable in the current period and therefore, are
not reported in the funds:
Revenue bonds payable $ (9,640,000)
Unamortized premiums (845,567)
General obligation bonds payable (46,755,000)
Special assessment bonds payable (43,400)
Rural development loans payable (3,616,115)
Compensated absences payable (5,654,936)
Claims and judgments payable (822,592)
Total (67,377,610)
Net assets of governmental activities $ 379,217,671
The notes to the financial statements are an integral part of this statement.
June 30, 2012
37
YUMA COUNTY
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2012
Jail Library
Capital District District
General Improvements General Operations General Operations
Revenues:
Taxes $ 40,246,924 $ 18,052 $ 11,344,489 $ 10,439,203
Special assessments - - - -
Licenses and permits 543,592 - - -
Intergovernmental 21,495,464 - 135,030 70,348
Charges for services 4,473,558 - 463,708 21,359
Fines and forfeits 1,658,743 - - 74,005
Investment income 105,192 19,545 3,802 70,495
Rents 17,675 - - 1,561
Miscellaneous 374,865 12,166 11,644 145,749
Total Revenues 68,916,013 49,763 11,958,673 10,822,720
Expenditures:
Current:
General government 37,632,254 223,552 - -
Public safety 11,275,279 - 16,536,724 -
Highways and streets - - - -
Sanitation 560,891 - - -
Health 278,420 - - -
Welfare 11,468,976 - - -
Culture and recreation 5,855 - - 7,390,235
Education 362,028 - - -
Capital outlay 533,039 914,232 117,802 47,814
Debt service:
Principal retirement 41,275 - - -
Interest and fiscal charges 1,824 - - -
Total Expenditures 62,159,841 1,137,784 16,654,526 7,438,049
Excess (deficiency) of revenues over
expenditures 6,756,172 (1,088,021) (4,695,853) 3,384,671
Other financing sources (uses):
Bonds proceeds - 2,435,000 - -
Payment to bond refunding escrow agent - - - -
Premiums - - - -
Transfers in 413,870 1,588,000 6,215,366 -
Transfers out (7,637,752) (829,000) (1,407,925) (3,324,825)
Total other financing sources (uses) (7,223,882) 3,194,000 4,807,441 (3,324,825)
Net change in fund balance (467,710) 2,105,979 111,588 59,846
Fund balances - beginning (July 1, 2011) 18,396,444 2,460,365 1,696,353 9,473,557
Fund balances - ending (June 30, 2012) $ 17,928,734 $ 4,566,344 $ 1,807,941 $ 9,533,403
The notes to the financial statements are an integral part of this statement.
38
Exhibit B- 3
Flood Control Health Services Development Improvement Other Total
District District Services District B & C Governmental Governmental
General Operations General Operations HURF Colonia, Debt Srv Funds Funds
$ 3,202,688 $ 2,258,309 $ 912,500 - $ 1,870,648 $ 7 0,292,813
- - - $ 532,495 39,967 572,462
2,610 355,830 34,192 - 34,131 970,355
- - 4,400,660 - 39,611,238 6 5,712,740
7,579 378,074 - - 1,398,834 6,743,112
- 30 - - 1,270,601 3,003,379
121,556 1,734 119,142 2,011 137,654 581,131
- - - - 281,965 301,201
334 70,704 1,633 - 693,313 1,310,408
3,334,767 3,064,681 5,468,127 534,506 45,338,351 1 49,487,601
- - - - 4,726,348 42,582,154
- - - - 10,812,851 3 8,624,854
937,204 - 1,888,145 - 6,640,777 9,466,126
- - - - 281,979 842,870
- 3,836,372 - - 4,666,721 8,781,513
- - - - 3,715,054 15,184,030
- - - - 118,791 7,514,881
- - - - 6,613,012 6,975,040
224,071 - 3,689,254 - 9,186,792 14,713,004
- - - 126,274 2,129,338 2,296,887
- - - 110,921 2,513,861 2,626,606
1,161,275 3,836,372 5,577,399 237,195 51,405,524 1 49,607,965
2,173,492 (771,691) (109,272) 297,311 (6,067,173) (120,364)
- - - - 8,000,000 10,435,000
- - - - (8,692,607) (8,692,607)
- - - - 845,567 845,567
- 786,898 - - 9,977,066 18,981,200
- (321,140) - - (5,093,641) (18,614,283)
- 465,758 - - 5,036,385 2,954,877
2,173,492 (305,933) (109,272) 297,311 (1,030,788) 2,834,513
15,427,012 784,951 15,990,959 98,041 20,437,026 8 4,764,708
$ 17,600,504 $ 479,018 $ 15,881,687 $ 395,352 $ 19,406,238 $ 8 7,599,221
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40
YUMA COUNTY Exhibit B- 4
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
Net change in fund balances - total governmental funds $ 2,834,513
Amounts reported for governmental activities in the Statement of Activities are different
because:
Governmental funds report capital outlays as expenditures. However, in the Statement
of Activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense.
Capital expenditures 14,713,003
Depreciation expense (8,079,094)
Certain capital assets donated to the County are reported as revenue on the Statement
of Activities. However, revenue is not reported in the governmental funds as these
donations do not provide for current financial resources. 3,733,839
Revenues in the Statement of Net Assets that do not provide current financial
resources are not reported as revenue in the governmental funds. 20,274
Debt proceeds provide current financial resources to governmental funds, but issuing
debt increases long-term liabilities in the Statement of Net Assets. Repayment of
debt principal is an expenditure in the governmental funds, but the repayment
reduces long-term liabilities in the Statement of Net Assets.
Principal paid 10,989,494
Bonds proceeds (10,435,000)
Premiums (845,567)
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and therefore, are not reported as expenditures in the
governmental funds.
Increase in compensated absences payable (42,117)
Decrease in claims and judgments payable 563,926
Internal service funds are used by management to charge the costs of certain activities
such as technology, maintenance and insurance to individual funds. The net
revenue (expense) of the internal service funds is reported with governmental activities
in the Statement of Net Assets.
IT Life Cycle Management 1,534
Revolving Fund 35,146
Workers Compensation (278,562)
Health Self-Insurance (387,043)
Liability Self-Insurance (32,854)
Change in net assets of governmental activities $ 12,791,492
The notes to the financial statements are an integral part of this statement.
Year Ended June 30, 2012
41
YUMA COUNTY Exhibit C- 1
Statement of Net Assets
Proprietary Funds
Governmental
Activities -
Internal Service
Funds
Current Assets:
Cash and cash equivalents $ 9,335,542
Receivables (net of allowances for uncollectibles):
Accounts 1 2,248
Accrued interest 8 ,641
Due from:
Other funds 2 05,456
Total Assets $ 9,561,887
Current Liabilities:
Accounts payable $ 7 3,861
Accrued payroll and employee benefits 8 ,443
Insurance claims payable 9 68,000
Due to:
Other funds 6 ,599
Total Liabilities $ 1,056,903
Unrestricted $ 8,504,984
Total Net Assets $ 8,504,984
The notes to the financial statements are an integral part of this statement.
Net Assets
June 30, 2012
Assets
Liabilities
42
YUMA COUNTY Exhibit C- 2
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
Governmental
Activities -
Internal Service
Funds
Charges for services $ 12,812,587
Miscellaneous 9 8,450
Total operating revenues 12,911,037
Personal services 4 16,754
Supplies and services 4 24,293
Tools and minor equipment 1 24,428
Professional services 1 75,160
Health services claims 8,943,002
Health services other 2,003,107
Insurance 1,094,653
Other 8 9,435
Total operating expenses 13,270,832
Operating loss (359,795)
Investment income 6 4,933
Total nonoperating revenues 6 4,933
Loss before transfers (294,862)
Transfers In 8 ,911
Transfers out (375,828)
Total transfers (366,917)
Decrease in net assets (661,779)
Total net assets, July 1, 2011 9,166,763
Total net assets, June 30, 2012 $ 8,504,984
The notes to the financial statements are an integral part of this statement.
Operating expenses
Nonoperating revenues
Year Ended June 30, 2012
Operating revenues
43
YUMA COUNTY Exhibit C- 3
Statement of Cash Flows
Proprietary Funds
Governmental
Activities -
Internal Service
Funds
Receipts from customers $ 12,692,628
Receipts from other funds for goods and services provided 797,472
Other receipts 1 2,717
Payments for supplies and to providers of goods and services ( 13,428,955)
Payments for employee wages and benefits (367,665)
Other payments (2,524)
Net cash used for operating activities (296,327)
Cash transfers out to other funds (375,828)
Cash transfers in from other funds 8 ,911
Net cash used for noncapital financing activities (366,917)
Interest received on investments 7 3,331
Net cash provided by investing activities 73,331
Net decrease in cash and cash equivalents (589,913)
Cash and cash equivalents, July 1, 2011 9,925,455
Cash and cash equivalents, June 30, 2012 $ 9,335,542
Reconciliation of operating loss to net cash used for operating activities:
Operating loss $ (359,795)
Adjustments to reconcile operating loss to net cash used for operating activites:
Changes in assets and liabilities:
(Increase) / decrease in assets:
Accounts receivable 3 70,677
Due from other funds 5 5,512
Increase / (decrease) in liabilities:
Accounts payable (68,662)
Accrued payroll and employee benefits (20,075)
Insurance claims payable (237,000)
Due to other funds (36,984)
Net cash used for operating activities $ (296,327)
The notes to the financial statements are an integral part of this statement.
Cash flows from noncapital financing activities:
Cash flows from investing activities:
Year Ended June 30, 2012
Cash flows from operating activities:
44
YUMA COUNTY Exhibit D- 1
Statement of Fiduciary Net Assets
Fiduciary Funds
Investment
Trust Agency
Funds Funds
Cash and cash equivalents $ 21,628,425 $ 4,143,800
Receivables (net of allowances for uncollectibles):
Accrued interest 141,250 -
Total Assets $ 21,769,675 $ 4,143,800
Deposits held for others - $ 4,143,800
Total Liabilities - $ 4,143,800
Reserved for:
Held in trust for investment trust participants $ 21,769,675
Total Net Assets $ 21,769,675
The notes to the financial statements are an integral part of this statement.
Net Assets
June 30, 2012
Assets
Liabilities
45
YUMA COUNTY Exhibit D- 2
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
Investment
Trust
Funds
Contributions from participants $ 374,872,591
Investment income 1,248,640
Total additions 376,121,231
Distributions to participants 372,864,234
Total deductions 372,864,234
Change in net assets 3,256,997
Net assets held in trust, July 1, 2011 18,512,678
Net assets held in trust, June 30, 2012 $ 21,769,675
The notes to the financial statements are an integral part of this statement.
Year Ended June 30, 2012
Additions:
Deductions:
46
Notes to
Financial Statements
47
Yuma County
Notes to Financial Statements
June 30, 2012
Note 1 - Summary of Significant Accounting Policies
Yuma County (The County)’s accounting policies conform to generally accepted accounting principles
applicable to governmental units adopted by the Governmental Accounting Standards Board (GASB).
A. Reporting Entity
The County is a general-purpose local government that is governed by a separately elected board of five
county supervisors (The Board). The accompanying financial statements present the activities of the County
(the primary government) and its legally separate component units, entities for which the County is considered
to be financially accountable.
Blended component units, although legally separate entities, are so intertwined with the County that they are in
substance part of the County's operations; therefore, data from these units is combined with data of the primary
government. Discretely presented component units, on the other hand, are reported in a separate column in
the government-wide financial statements to emphasize they are legally separate from the County. Each
blended component unit discussed below has a June 30 year-end. The County has no discretely presented
component units. The following table describes the County’s component units:
For Separate
Description; Criteria Reporting Financial
Component Unit for Inclusion Method Statements
Yuma County A tax-levying district that provides flood Blended Not Available
Flood Control District control systems; County’s board of
supervisors serves as board of directors
Yuma County A tax-levying district that provides and Blended Not Available
Library District maintains library services for the County's
residents; County board of supervisors
serves as board of directors
Yuma County Constructs or improves sidewalks, curbs Blended Not Available
Special Assessment and gutters, irrigation systems, and street
(Improvement) lighting within the County; County’s board
Districts of supervisors serves as board of directors
Yuma County A tax-levying district that acquires, Blended Yuma County
Jail District constructs, operates, maintains, and Financial Services
finances county jails and jail systems; the 198 South Main
County’s board of supervisors serves as Street
board of directors Yuma, AZ 85364
Yuma County A tax-levying district that provides health Blended Not Available
Health Services services which promote healthy lifestyles
District and prevent disease and disability; the
County’s board of supervisors serves as
board of directors
Yuma County is required by law to maintain its support of corrections facilities and services operated,
maintained and performed by the Yuma County Jail District. The amount of this maintenance of effort for the
year ended June 30, 2012 is $6,215,366. Yuma County is also required to maintain support of the Health
Services District. The amount for health services support for the year ended June 30, 2012 is $786,898. The
health services district also includes the Rabies Control Fund.
48
Yuma County
Notes to Financial Statements
June 30, 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation
The basic financial statements include both government-wide statements and fund financial statements. The
government-wide statements focus on the County as a whole, while the fund financial statements focus on
major funds. Each presentation provides valuable information that can be analyzed and compared between
years and between governments to enhance the usefulness of the information.
1. Government-wide statements – provide information about the primary government (the County) and its
component units. The statements include a statement of net assets and a statement of activities. These
statements report the overall government’s financial activities, except for fiduciary activities. They also
distinguish between the governmental and business-type activities. Governmental activities generally are
financed through taxes and intergovernmental revenues. The County has no business-type activities or
discretely presented component units.
A statement of activities presents a comparison between direct expenses and program revenues for each
function of the County’s governmental activities. Direct expenses are those that are specifically associated with
a program or function and, therefore, are clearly identifiable to a particular function. The County does not
allocate indirect expenses to programs or functions. Program revenues include:
 charges to customers or applicants for goods, services, or privileges provided;
 operating grants and contributions; and
 capital grants and contributions, including special assessments
Revenues that are not classified as program revenues, including internally dedicated resources and all taxes
levied or imposed by the County, are reported as general revenues.
Generally, the effect of interfund activity has been eliminated from the government-wide financial statements to
minimize the double counting of internal activities. However, charges for interfund services provided and used
are not eliminated if the prices approximate their external exchange values.
2. Fund financial statements – provide information about the County’s funds, including fiduciary funds and
blended component units. Separate statements are presented for the governmental, proprietary, and fiduciary
fund categories. The emphasis of fund financial statements is on major governmental funds, each displayed in
a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.
Fiduciary funds are aggregated and reported by fund type.
Proprietary fund revenues and expenses are classified as either operating or non-operating. Operating
revenues and expenses generally result from transactions associated with the fund’s principal activity.
Accordingly, revenues, such as user charges, in which each party receives and gives up essentially equal
values, are operating revenues. Other revenues, such as investment income, result from transactions in which
the parties do not exchange equal values and are reported as non-operating revenues. Operating expenses
include the cost of services and administrative expenses. The County has no non-operating expenses.
The County reports the following major governmental funds:
The General Fund is the County’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The Capital Improvements Fund accounts for the majority of the County’s Capital Projects. These projects are
on their majority general fund funded.
The Jail District General Operations Fund is the primary operating fund of the Jail District. It accounts for all
financial resources of the Jail District, except those required to be accounted for in another fund. The Jail
District constructs, operates, maintains, and finances the County jails and jail systems. The primary sources of
income comes from a voter approved .05 cent transaction privilege (sales) tax and the maintenance of effort,
which is formula driven, from the general fund as determined by State statute.
49
Yuma County
Notes to Financial Statements
June 30, 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
The Library District General Operations Fund is the primary operating fund of the Library District. It accounts
for all financial resources of the Library District, except those required to be accounted for in another fund. The
Library District provides and maintains library services for the County’s residents. The library district’s primary
support is the levy of property taxes; the District has the authority to levy its own property taxes based on
assessed values.
The Flood Control District General Operations Fund is the primary operating fund of the Flood Control District.
It accounts for all financial resources of the Flood Control District, except those required to be accounted for in
another fund. The Flood Control District constructs and maintains flood control systems throughout the County.
The district is primarily supported from the levy of property taxes as approved by the board of supervisors.
The Health Services District General Operations Fund is the primary operating fund of the Health Services
District. It accounts for all financial resources of the Health Services District, except those required to be
accounted for in another fund. The Health Services District provides health programs and services for the
County’s residents. The Health Services District as a whole is supported by a predetermined required
contribution from the general fund, a .01 cent transaction privilege (sales) tax, and a number of federal and
state grants aimed to aid in the implementation of the required health programs and services.
The Development Services Highway Users Revenue Fund (HURF) is a special revenue fund restricted to
construct, acquire, and maintain the County’s highway system. It is funded through federal and state sources
including the auto in lieu tax and road fund permits. HURF revenue, the fund’s primary source of revenue, is
collected by the State of Arizona Department of Transportation then allocated to the County based on a
population formula.
The Improvement District B & C Colonia, Debt Service Fund accounts for the resources that are accumulated
for the payment of interest, principal, and related costs on the Improvement District’s sewer project long –term
debt. The Improvement District installed a sewer system funded from federal grants and borrowed funds.
Additionally, the County reports the following fund types:
The Internal Service Funds account for health insurance for county employees; property and personal liability
insurance; and the maintenance and purchase of technology equipment and software provided to County
departments or to other governments on a cost-reimbursement basis.
The Investment Trust Funds account for pooled assets and individual investment accounts the County
Treasurer holds and invests on behalf of other governmental entities.
The Agency Funds account for assets the County holds as an agent for the State, school districts, individuals,
and various local governments, mainly for property taxes collected and distributed to the State, local school
districts, community college districts, and special districts. One agency fund is reported to account for all
custodial activities.
C. Basis of Accounting
The government-wide, proprietary fund and fiduciary fund financial statements are presented using the
economic resources measurement focus, with the exception of the agency funds, and the accrual basis of
accounting. The agency funds are custodial in nature and do not have a measurement focus. Revenues are
recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of when the
related cash flows take place. Property taxes are recognized as revenue in the year for which they are levied.
Grants and donations are recognized as revenue as soon as all eligibility requirements the provider imposed
have been met.
Under the terms of grant agreements, the County funds certain programs by a combination of grants and
general revenues. Therefore, when program expenses are incurred, there are both restricted and unrestricted
net assets available to finance the program. The County applies grant resources to such programs before
using general revenues.
50
Yuma County
Notes to Financial Statements
June 30, 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
Governmental funds in the fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under this method, revenues are
recognized when they are both measurable and available. The County considers all revenues reported in the
governmental funds to be available if the revenues are collected within 60 days after fiscal year-end. The
County’s major revenue sources that are susceptible to accrual are property taxes, special assessments,
intergovernmental, charges for services, and investment earnings. Expenditures are recorded when the related
fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and
compensated absences, which are recognized as expenditures to the extent they are due and payable.
General capital asset acquisitions are reported as expenditures in governmental funds. Issuances of long-term
debt and acquisitions under capital lease agreements are reported as other financing sources.
D. Cash and Investments
For purposes of its statement of cash flows, the County considers cash on hand, demand deposits, cash on
deposit with the County Treasurer, and only those highly liquid investments with a maturity of 3 months or less
when purchased to be cash equivalents.
Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and
participating interest-earning investment contracts with a remaining maturity of 1 year or less at the time of
purchase are stated at amortized cost. All other investments are stated at fair value.
E. Inventories and Prepaid Items
Inventories, of the governmental funds consist of expendable supplies held for consumption and are recorded
as assets when purchased and expended when consumed. These inventories are stated at cost using the first-in,
first-out method. Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. The County has adopted
the consumption method of accounting for prepaid items. That is, the asset is recorded when the payments to
vendors are made, and the expenditures are recorded in the appropriate accounting period.
In the governmental funds, inventories and prepaid items are classified as nonspendable in the fund balance
section as they do not constitute spendable resources.
F. Property Tax Calendar
The County levies real and personal property taxes on or before the third Monday in August that become due
and payable in two equal installments. The first installment is due on the first day of October and becomes
delinquent after the first business day of November. The second installment is due on the first day of March of
the next year and becomes delinquent after the first business day in May.
A lien assessed against real and personal property attaches on the first day of January preceding assessment
and levy.
G. Capital Assets
Capital assets are reported at actual cost, (or estimated historical cost if historical records are not available).
Donated assets are reported at estimated fair value at the time received.
51
Yuma County
Notes to Financial Statements
June 30, 2012
Note 1 - Summary of Significant Accounting Policies (Continued)
Capitalization thresholds (the dollar values above which asset acquisitions are added to the capital asset
accounts), depreciation methods, and estimated useful lives of capital assets reported in the government-wide
statements are as follows:
Capitalization
Threshold
Land All
Construction in Progress All Depreciation Estimated
Infrastructure (paved roads) All Method Useful Life
Buildings $ 10,000 Straight line 15-50
Improvements Other than Buildings 10,000 Straight line 5-40
Machinery and Equipment 5,000 Straight line 5-25
Infrastructure (except paved roads) 10,000 Straight line 10-50
The County uses the modified approach for reporting its paved roads subsystem and, therefore, no
depreciation is recorded for these assets. Under the modified approach, the County has determined that the
condition level for eligible infrastructure assets to be maintained is an average Overall Condition Index (OIC) of
65. The Yuma County Public Works Department is responsible for determining the appropriate condition level
of the eligible infrastructure. No amounts are capitalized in connection with improvements that lengthen the
lives of such assets, unless the improvements also increase their efficiency and/or capacity. The Public Works
Department maintains an inventory of these eligible infrastructure assets and performs periodic condition
assessments to establish that the predetermined condition level is being maintained.
Complete condition assessments are determined in a consistent manner on a triennial basis. Annual estimates
of the amounts that must be expended to preserve and maintain these infrastructure assets at the
predetermined condition levels are computed by the Public Works Department.
H. Fund Balance Classifications
Fund balances of the governmental fund are reported separately within classifications based on a hierarchy of
the constraints placed on the use of those resources. The classifications are based on the relative strength of
the constraints that control how the specific amounts can be spent. The classifications are nonspendable,
restricted and unrestricted, which includes committed, assigned and unassigned fund balance classifications.
The nonspendable fund balance classification includes amounts that cannot be spent because they are either
not in spendable form, such as inventories and prepaid items, or are legally or contractually required to be
maintained intact. Restricted fund balances are those that have externally imposed restrictions on their usage
by creditors, such as through debt covenants, grantors, contributors, or laws and regulations
The unrestricted fund balance category is composed of committed, assigned, and unassigned resources.
Committed fund balances are self-imposed limitations approved by the County’s Board of Supervisors, which is
the highest level of decision-making authority within the County. The committed fund balance constraints can
only be removed or changed by Board action when adopting a resolution to establish, modify, or rescind the
commitment. During the fiscal Year 2012 budget adoption process, the Board committed to funds to complete
various capital projects including the completion of an East County facility.
Assigned fund balances are resources constrained by the County’s intent to be used for specific purposes, but
are neither restricted nor committed. The Board has authorized the County Administrator, who in turn has
authorized department heads to make assignments of resources for specific purposes for the fund assigned
under their custody. Elected officials are also authorized to make assignments as seen fit.
The unassigned fund balance is the residual classification for the General Fund and includes all spendable
amounts not reported in the other classifications. Also, deficits in fund balances of the other governmental
funds are reported as unassigned.
When an expenditure is incurred that can be paid from either restricted or unrestricted fund balances, it’s the
County’s policy to use restricted fund balances first.
52
Yuma County
Notes to Financial Statements
June 30, 2012
Note 1 - Summary of Significant Accounting Policies (Concluded)
The County has not formally adopted a policy specifying the hierarchy in use of unrestricted fund balances;
however, the County considers that the committed amounts will be used first, followed by assigned amounts,
and then unassigned amounts.
I. Investment Income
Investment income is composed of interest, dividends, and net changes in the fair value of applicable
investments.
J. Sales Tax Revenue
Sales tax revenues are collected by the State of Arizona and are generally remitted to the County Treasurer on
a monthly basis. Sales tax revenue is recognized as revenues for the month reported and collected by the
State of Arizona.
K. Intergovernmental Grants and Aid
Grants and assistance awards made on the basis of entitlement periods are recorded as intergovernmental
receivables and revenues when entitlement occurs. Reimbursement grants are recorded as intergovernmental
receivables and revenues when the related expenditures are incurred. Reimbursements not received within 60
days subsequent to fiscal year-end are reported as deferred revenues in the governmental funds’ financial
statements.
L. Compensated Absences
Compensated absences payable consist of vacation leave and a calculated amount of sick leave earned by
employees based on services already rendered.
Employees may accumulate up to 240 hours of vacation depending on years of service, but any vacation hours
in excess of the maximum amount that are unused at calendar year-end are forfeited, unless otherwise
approved by the Board to temporarily carry excess vacation hours.
Upon terminating employment, all unused and unforfeited vacation benefits are paid to employees. Accordingly,
vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these
amounts is reported in the governmental funds’ financial statements only if they have matured, for example, as
a result of employee resignations and retirements by fiscal year-end.
Employees may accumulate an unlimited number of sick leave hours. Generally, sick leave benefits provide for
ordinary sick pay and are cumulative, but are forfeited upon terminating employment. However, for employees
who terminate with a minimum of five years continuous service, sick leave benefits do vest, and, therefore, are
accrued. Upon termination, eligible employees are compensated for actual sick leave up to 1,000 hours at $3
per hour. Vested accumulated sick hours are recorded and accrued as a liability in the government-wide
financial statements similar to the vacation benefits. A liability for sick hours is reported in the governmental
funds’ financial statements only when vested employees depart from the County.
M. Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as
liabilities in governmental activities. Bond premiums are deferred and amortized over the life of the bonds using
the straight-line method.
In the fund financial statements, governmental fund types recognized bond premiums during the current period.
The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources.
53
Yuma County
Notes to Financial Statements
June 30, 2012
Note 2 – Fund Balance Classifications of the Governmental Funds
The fund balances classifications of the governmental funds as of June 30, 2012, were as follows:
Note 3 - Stewardship, Compliance, and Accountability
Deficit fund balances – At June 30, 2012, the following funds reported deficits in fund balances. These fund
deficits resulted from either operations during the year or a carryover deficit from prior years but are expected
to be corrected through normal operations in the next fiscal year. The debt service fund deficit was the result of
additional monies needed to defease debt.
Jail Library Flood Control Health Serv Imp District
District District District District Development B & C Other
Capital General General General General Services Colonia Governmental
Fund balance General Improvements Operations Operations Operations Operations HURF Debt Serv Funds Total
Nonspendable:
Inventory - - - - - - - - $ 10,028 $ 10,028
Prepaid expenses items $ 266,480 - - $ 4,511 $ 2,526 - $ 12,601 - 759 286,877
Total nonspendable 266,480 - - 4,511 2,526 - 12,601 - 10,787 296,905
Restricted for:
Capital Projects
Improvement districts - - - - - - - - 75,070 75,070
Bridges and drains - - - - 1,194,330 - - - - 1,194,330
Roads - - - - - - 1,394,116 - 24,519 1,418,635
Operations and maintenance
Library district - - - 9,528,892 - - - - 94,969 9,623,861
Health district 786,898 - - - - $ 479,018 - - 350,785 1,616,701
Flood control district - - - - 16,403,648 - - - - 16,403,648
Highways and streets - - - - - - 14,474,970 - 4,797,310 19,272,280
Debt service reserve - - - - - - - $ 127,466 39,832 167,298
Judicial activities - - - - - - - - 3,180,764 3,180,764
Housing activities - - - - - - - - 1,095,450 1,095,450
Law enforcement 6,415,099 - $ 1,807,941 - - - - - 746,343 8,969,383
Other - - - - - - - - 2,329,626 2,329,626
Total restricted 7,201,997 - 1,807,941 9,528,892 17,597,978 479,018 15,869,086 127,466 12,734,668 65,347,046
Committed to:
Capital projects
Library district - - - - - - - - 189,702 189,702
Jail district - - - - - - - - 807 807
Improvement districts - - - - - - - - 36,897 36,897
New buildings - $ 1,704,817 - - - - - - - 1,704,817
Miscellaneous - 2,861,527 - - - - - - - 2,861,527
Operations and maintenance
Superior court - - - - - - - - 137,335 137,335
Local courts - - - - - - - - 408,752 408,752
Health- Rabies - - - - - - - - 25,600 25,600
Debt service payments - - - - - - - 267,886 4,556,134 4,824,020
Total Committed - 4,566,344 - - - - - 267,886 5,355,227 10,189,457
Assigned to:
Attorney- Enhancements - - - - - - - - 180,570 180,570
Housing activities - - - - - - - - 466,587 466,587
Imp Dist maintenance - - - - - - - - 309,808 309,808
Juvenile judicial activities - - - - - - - - 150,575 150,575
Other - - - - - - - - 42,419 42,419
Total Assigned - - - - - - - - 1,149,959 1,149,959
Unassigned 10,460,257 - - - - - - - 155,597 10,615,854
Total fund balances $ 17,928,734 $ 4,566,344 $ 1,807,941 $ 9,533,403 $ 17,600,504 $ 479,018 $ 15,881,687 $ 395,352 $ 19,406,238 $ 87,599,221
Fund Agency Number Amount
Governmental Funds:
Crime Victim Compensation Grant County Attorney 2209 $ 1
Court Appointed Specialist Juvenile Court 2248 4
Improving AM Schools Juvenile Court 2257 12,361
Debt Service Jail District 3500 250,744
El Prado Estates Improvement Districts 4717 9,750
B & C Colonia ARRA Improvement Districts 4722 28,132
54
Yuma County
Notes to Financial Statements
June 30, 2012
Note 3 - Stewardship, Compliance, and Accountability (Concluded)
For the fiscal year ended June 30, 2012, expenditures exceeded final budget amounts at the department level
within each fund are as follows:
Fund Agency Number Excess
Governmental Funds:
General Fund:
Medical Examiner – Sheriff General Fund 0100 $ 7,570
School Superintendant General Fund 8000 105
Juvenile Probation Juvenile Court 2259 16
Local Assistance- Clerk of Superior Court Superior Court 2221 14
The majority of these departments exceeded budgets because of unusual and unplanned events. The Sheriff’s
Medical Examiner department in the General fund exceeded its expenditures budget for fiscal year 2012 due to
an increase in related cases.
The most common offense is the departments failing to request budget adjustments to match actual grant
award amounts and offsetting expenditures. All of these funds had enough contingency reserves. The County
is working on creating additional reporting mechanisms to enable a more frequent and more comprehensive
analysis of budget to actual expenditures throughout the year.
Note 4 - Deposits and Investments
Arizona Revised Statutes (A.R.S.) authorize the County to invest public monies in the State Treasurer’s
investment pool; obligations issued or guaranteed by the United States or any of the senior debt of its
agencies, sponsored agencies, corporations, sponsored corporations, or instrumentalities; specified state and
local government bonds and notes; interest earning investments such as savings accounts, certificates of
deposit, and repurchase agreements in eligible depositories, specified commercial paper, bonds, debentures,
and notes issued by corporations organized and doing business in the United States; and certain open-end and
closed-end mutual funds, including exchange trade funds. In addition, the County Treasurer may invest trust
funds in certain fixed income securities of corporations doing business in the United States or District of
Columbia.
Credit risk- Statutes have the following requirements for credit risk:
1. Commercial paper must be of prime quality and be rated within the top two ratings by a nationally
recognized rating agency.
2. Corporate bonds, debentures, and notes must be rated within the top three ratings by a nationally
recognized rating agency.
3. Fixed income securities must carry one of the two highest ratings by Moody’s investors service and
Standard and Poor’s rating service. If only one of the above-mentioned services rates the security, it
must carry the highest rating of that service.
Custodial credit risk- Statutes require collateral for deposits and certificates of deposit at 101 percent of all
deposits not covered by federal depository insurance.
Concentration of credit risk- Statutes do not include any requirements for concentration of credit risk.
Interest rate risk- Statutes require that public monies invested in securities and deposits have a maximum
maturity of 5 years. Investments in repurchase agreements must have a maximum maturity of 180 days.
Foreign currency risk- Statutes do not allow foreign investments.
Deposits – At June 30, 2012, the carrying amount of the County’s deposits was $10,255,029 and the bank
balance was $14,924,282. The County does not have a policy related to custodial credit risk.
55
Yuma County
Notes to Financial Statements
June 30, 2012
Note 4 - Deposits and Investments (Continued)
Investments – The County’s investments at June 30, 2012, were as follows:
Investment Type Fair Value
State Treasurer’s investment pool 7 $ 41,401,328
State Treasurer’s investment pool 5 84,831
U.S. agency securities 64,456,685
Total $ 105,942,844
The State Board of I