La Paz County Report on Audit of Annual Expenditure Limitation Report FY 2008

              LA PAZ COUNTY, ARIZONA
REPORT ON AUDIT OF ANNUAL EXPENDITURE
LIMITATION REPORT
YEAR ENDED JUNE 30, 2008
LA PAZ COUNTY, ARIZONA
REPORT ON AUDIT OF ANNUAL EXPENDITURE
LIMITATION REPORT
YEAR ENDED JUNE 30, 2008
CONTENTS PAGE
Independent Auditors' Report 1
Annual Expenditure Limitation Report – Part I 2
Annual Expenditure Limitation Report – Part II 3
Annual Expenditure Limitation Report – Reconciliation 4
Notes to Annual Expenditure Limitation Report 5
INDEPENDENT AUDITORS' REPORT
The Auditor General of the State of Arizona and
The Board of Supervisors
of La Paz County, Arizona
We have audited the accompanying Annual Expenditure Limitation Report of La Paz County,
Arizona, for the year ended June 30, 2008. This report is the responsibility of the La Paz County,
Arizona’s management. Our responsibility is to express an opinion on this report based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the report is free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the report. An audit also
includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall report presentation. We believe that our audit provides a reasonable
basis for our opinion.
The accompanying Annual Expenditure Limitation Report was prepared for the purpose of
complying with the uniform expenditure reporting system as discussed in Note 1, and is not intended
to be a presentation in conformity with accounting principles generally accepted in the United States
of America.
In our opinion, the Annual Expenditure Limitation Report of La Paz County, Arizona, for the year
ended June 30, 2008, referred to above presents fairly, in all material respects, the information
required by the uniform expenditure reporting system on the basis of accounting described in Note 1.
This report is intended solely for the information and use of the members of the Arizona State
Legislature, the Board of Supervisors and management, and for filing with the Auditor General of
the State of Arizona, and is not intended to be and should not be used by anyone other than these
specified parties. However, this report is a matter of public record, and its distribution is not limited.
HEINFELD, MEECH & CO., P.C.
Certified Public Accountants
December 26, 2012
TUCSON • PHOENIX • FLAGSTAFF • ALBUQUERQUE
www.heinfeldmeech.com
10120 N. Oracle Road
Tucson, Arizona 85704
Tel (520) 742-2611
Fax (520) 742-2718
LA PAZ COUNTY, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT - PART I
YEAR ENDED JUNE 30, 2008
1. Economic Estimates Commission expenditure limitation $ 11,085,967
2. Amount subject to the expenditure limitation
(total amount from Part II, Line C) 11,085,967
3. Amount under the expenditure limitation $ °
I hereby certify, to the best of my knowledge and belief, that the information contained in this report
is accurate and in accordance with the requirements of the uniform ex dit eporting system.
Signature of Chief Fiscal Officer:
Name and Title: Daniel Field, County Administrator
Telephone Number: (928) 669-6615 Date: December 26, 2012
See accompanying notes to report.
Page 2
Governmental Enterprise Fiduciary
Description Funds Fund Funds Total
A. Amounts reported on the
Reconciliation, Line D $ 25,225,801 $ 1,699,486 $ 39,378,027 $ 66,303,314
B. Less exclusions claimed:
Debt service requirements on
other long-term obligations (Note 2) 210,298 350,061 560,359
Dividends, interest, and gains
on the sale or redemption of
investment securities (Note 3) 383,042 9,852 392,894
Trustee or custodian (Note 4) 928,283 39,378,027 40,306,310
Grants and aid from the
federal government (Note 5) 2,474,544 2,474,544
Grants, aid, contributions,
or gifts from a private agency,
organization, or individual,
except amounts received
in lieu of taxes (Note 8) 233,682 233,682
Amounts received from the
State of Arizona (Notes 5 and 6) 4,078,031 4,078,031
Highway user revenues in
excess of those received in
fiscal year 1979-80 (Note 5) 4,177,315 4,177,315
Contracts with other political
subdivisions (Note 7) 2,437,447 2,437,447
Refunds, reimbursements, and
other recoveries (Note 10) 531,995 531,995
Prior years carryforward (Note 9) 24,770 24,770
Total exclusions claimed 15,479,407 359,913 39,378,027 55,217,347
C. Amount subject to the
expenditure limitation $ 9,746,394 $ 1,339,573 $ - $ 11,085,967
LA PAZ COUNTY, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT - PART II
YEAR ENDED JUNE 30, 2008
Page 3 See accompanying notes to report.
Governmental Enterprise Fiduciary
Description Funds Fund Funds Total
A. Total expenditures/expenses/
deductions and applicable other
financing uses reported within the $ 31,502,992 $ 1,531,519 $ 39,378,027 $ 72,412,538
fund financial statements
B. Subtractions:
Items not requiring use of
working capital:
Depreciation 181,094 181,094
Expenditures of separate legal
entities established under
Arizona Revised Statutes
(Note 11) 5,420,991 5,420,991
Long-term care contributions
withheld by the State
Treasurer (Note 12) 856,200 856,200
Total subtractions 6,277,191 181,094 6,458,285
C. Additions:
Principal payments on
long-term debt 332,762 332,762
Acquisition of capital assets 16,299 16,299
Total additions 349,061 349,061
D. Amounts reported on Part II, Line A $ 25,225,801 $ 1,699,486 $ 39,378,027 $ 66,303,314
YEAR ENDED JUNE 30, 2008
ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION
LA PAZ COUNTY, ARIZONA
Page 4 See accompanying notes to report.
LA PAZ COUNTY, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2008
Page 5
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Annual Expenditure Limitation Report (AELR) is presented on the basis of
accounting prescribed by the Uniform Expenditure Reporting System (UERS), as
required by Arizona Revised Statutes Section 41-1279.07, which excludes
expenditures/expenses or deductions of certain revenues specified in the Arizona
Constitution, Article IX, Section 20 from the total expenditures/expenses or deductions
reported in the fund financial statements.
In accordance with the UERS requirements, a note to the AELR is presented below for
any exclusion claimed on Part II and each subtraction or addition in the Reconciliation
that cannot be traced directly to an amount reported in the fund financial statements.
All references to financial statement amounts in the following notes refer to the
Statement of Revenues, Expenditures, and Changes in Fund Balances for the
Governmental Funds, the Statement of Revenues, Expenses, and Changes in Fund Net
Assets for the Proprietary Fund, Statement of Cash Flows for the Proprietary Fund, and
the Statement of Changes in Fiduciary Net Assets for the Fiduciary Funds.
NOTE 2 – The exclusion claimed for debt service requirements on other long-term obligations in
the Governmental Funds of $210,298 consists of expenditures classified as principal
and interest and recorded as debt service expenditures. The exclusion does not include
$256,088 of debt service expenditures attributable to the Jail District for which total
expenditures were subtracted on the Reconciliation.
NOTE 3 – The exclusion claimed for dividends, interest, and gains on the sale or redemption of
investment securities of $383,042 in the Governmental Funds includes interest on
investments expended of $248,941 and interest on delinquent taxes expended of
$134,101, which was recorded as tax revenue. This exclusion does not include
$47,178 of investment income attributable to the Jail District for which total
expenditures were subtracted on the Reconciliation.
NOTE 4 – The exclusion claimed for trustee or custodian of $928,283 in the Governmental Funds
consists of $262,300 in contributions recorded as health expenditures by the County to
the Arizona Health Care Cost Containment System for acute care administrative cost
contributions and uncompensated care contributions, $600,257 of general government
expenditures from revenues in the Anti-Racketeering (RICO) Fund, $40,038 of general
government expenditures from revenues in the County Attorney RICO Fund and
$25,688 in the Sherriff’s RICO Fund, which benefited other governmental entities.
LA PAZ COUNTY, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2008
(Continued)
Page 6
NOTE 5 – The following schedule presents revenues from which exclusions have been claimed for
federal grants and aid, amounts received from the State of Arizona, highway user
revenues, contracts with other political subdivisions, and grants, aid, contributions or
gifts from a private agency, organization, or individual in the Governmental Funds. The
amounts excluded do not exceed expenditures of such revenues.
Description
Governmental
Funds
Grants and aid from the Federal government $ 2,474,544
Amounts received from the State of Arizona (see Note 6) 3,501,388
Highway user revenues in excess of those received in
fiscal year 1979-80 4,177,315
Contracts with other political subdivisions (Note 7) 63,943
Grants, aid, contributions, or gifts from a private agency,
organization, or individual (Note 8) 149,663
Other revenues – nonexcludable 3,821,741
Total intergovernmental revenues as reported in the
fund financial statements $ 14,188,594
NOTE 6 – Amounts received from the State of Arizona include an exclusion of $576,643 for
motor vehicle license tax reported as taxes in the Road Fund in the fund financial
statements.
NOTE 7 – The exclusions claimed for contracts with other political subdivisions consists of the
following:
 $24,789 expended pursuant to a contract with the Town of Quartzsite to
provide services for elections reported as charges for services in the fund
financial statements.
 $63,943 of revenues expended for the employment of a school officer and
other miscellaneous contracts reported as intergovernmental revenues in the
fund financial statements.
LA PAZ COUNTY, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2008
(Continued)
Page 7
 $1,096,646 of revenues expended from the proceeds of an intergovernmental
agreement between the Arizona Department of Transportation (ADOT) and
the County. The County received and recorded these proceeds in 2002 as
intergovernmental revenues in the Business 95 Road Improvement Fund
(B95 Fund). The County subsequently met the stipulations of the agreement
and during 2008; the County’s General Fund borrowed monies from the B95
Fund to purchase Colorado River water rights for $1,096,646 which is
reported in capital outlays in the County’s General Fund.
 In addition, during 2008, the County’s General Fund borrowed an additional
$1,035,737 of the ADOT intergovernmental agreement proceeds that are
reported as an amount due from the General Fund. The expenditure of these
proceeds were used by the County’s General Fund for operations and
reported under the various functional expenditure classifications.
 Also, the County expended $216,332 in the B95 Fund from the proceeds of
the ADOT intergovernmental agreement which are reported in the highways
and streets functional expenditure category.
NOTE 8 – The exclusion claimed for grants, aid, contributions, or gifts from a private agency
organization, or individual consists of $149,663 of grants reported as
intergovernmental revenues and $84,019 of private contributions reported as
miscellaneous revenues.
NOTE 9 – Prior years carryforward consists of constitutionally excludable revenues unexpended
in the year of receipt that have been accumulated and were expended in the current
year as follows:
Description
Carryforward balance from fiscal year 2006-07 $ 48,993
Carryforward utilized in fiscal year 2007-08
Dividends, interest, and gains on the sale or
redemption of investment securities 24,770
Total carryforward available for use in future years $ 24,223
LA PAZ COUNTY, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2008
(Concluded)
Page 8
NOTE 10 – The exclusions claimed for refunds, reimbursements, and other recoveries consist of
recovery of expenditures in which $531,995 are reported as charges for services in the
fund financial statements.
NOTE 11– The subtraction of $5,420,991 for separate legal entities established under Arizona
Revised Statutes consists of the following expenditures included within the County’s
reporting entity but not included in the Economic Estimates Commission base limit
calculations.
Description
Public safety expenditures for the Jail District $ 3,373,827
Capital outlay expenditures for the Jail District 1,701,850
Debt service expenditures for the Jail District 256,088
Public safety expenditures for the Jail
Commissary Fund 81,322
Public safety expenditures for various street
lighting districts 7,904
Total expenditures of separate legal entities
established under Arizona Revised Statutes
subtraction $ 5,420,991
NOTE 12– The subtraction for long-term care contributions withheld by the State Treasurer
consists of transaction privilege taxes withheld by the State Treasurer to meet the
County’s share of long-term care costs that was reported as revenue and an offsetting
expenditure in the County’s Governmental Funds. Consequently, this expenditure has
been subtracted on the Reconciliation.