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Home My WebLink About1984 Financial Statement June 30. ; TOWN OF MARANA, ARIZ-0NA GENERAL PURPOSE FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1984 � �. x� �,s ��'? . �, t �: .�. _. _ �� , �� y .Zl,� : `° . . .�._«i„• �.�t. __..,��'u J A N 2 3 1985 1 TOWN OF MARANA, ARIZ ONA YEAR ENDED JUNE 30, 1984 TABLE OF CONTENTS EXHIBIT 1 2 3 Accountant's report General purpose financial statements: Combinec3 balance sheet, all f und types and account groups Combined statement of revenues, expenditures and changes in f und balances, all governmental f und ty pe s Combined statement of revenues, expen3itures and changes in fund balances, budget and actual, general and special revenue fund types Footnotes to combined financial statements PAG E 1 2 3 4 5-10 �� w _..�' , . Honorable Mayor and Town Council Town of Marana � � Marana, Arizona I have exam ined the combined f inancial statements of the Town of Marana, Arizona as of and for the year ended June 30, 1984, as listed in the table of contents. My examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and ' such other auditing procedures as I considered necessary in the circumstances. ` In my opinion, the combined financial statements referred to above -present fairly the financial position of the Town of Marana, Arizona, at June 30, 1984, and the results of its operations for the year then ended, in conformity with generally ' accepted accounting principles applied on a basis consistent with ° that of the preceding year. ,-, � � � � GZ�CA�-- � C�� ` September 10, 1984 1 <�� __ v_.��. _. _. � TOWN OF MARANA CONIB INED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROU PS - EXH IB IT 1 JUNE 30, 1984 Assets Ca sh Accounts receivable Due from other funds (Note 5) Prepaid expenses Am o un t s t o be pr ov i de d Fixed assets Total assets � Eauity Liabil ities: Accounts payable and accrued expenses Due to other f unds (Note 5) Def erred revenue Long-term debt (Note 4) Total liabil ities Fund eq ui ty : Investment in f ixed assets Unreservec3 fund balances Total fund equity Total liabilities and fund eq ui ty Goverrunental Fund T��es Special General Revenue $ 8,275 16,057 $ 110,536 14 , 019 17,704 S 24 ,�,'�2 S 142 .259 $ 19,314 $ 7,323 17,704 68,471 . , . ,.. � : � : 48.761 48.�1 $ 24 .332 � _�_ • General General Long- ' Fixed Assets Term Debt 9 4 E S 296 .961 S 29 61� $ 296,961 - 296.96� .�296,961 $ 4,778 � 4 .778 : : �� Total s (Memorandum Only) 1984 1983 $ 118,811 $ 37,642 30,076 25,810 17,704 1,590 4,778 5,014 296.961 283.115 $ 468.330 S 353.171 $ 26,637 $ 14,881 17,704 68,471 4 .�8 5 .014 117.590 19.895 296,961 283,115 53.779 50.161 350 333.�76 .S 468 ,�Q S 353 .171 See footnotes to financial statements. TC)WN OF MARANA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES - EXHIBIT 2 YEAR ENDED JUNE 30, 1984 Revenues : Taxes Licenses and permits Fines, forfeitures and penalties Grants and contributions on Federal and State programs Miscellaneous Total rev enue s Expenditures : Administration Town attorney Publ ic safety Magi strate co urt Public works Transportation Capi tal pr oj ect s Total expenditures Excess (deficiency) of revenues over ( under ) expenditures Fund balance as previously reported, beginning Ciunulative effect of change in accounting principle (Note 2) Fund balance as restated, beginning Fund balance, ending General Special Revenue $ 256,241 942 26,801 . _ :• .�. $ 171,673 ��►��#Ic7 73,998 7,473 191,594 18,682 �� ( 2 •�) 15,887 ( 8.728) �� S 5 s Q.�,$ 75,340 20,292 59 .514 155 •14�C 16 .�Z 34,274 ( 2.040) 32 .234 S 48.761 i� _ ._ �-��• . �. _�� •� .. ,. .� . $ 256,241 942 26,80I 171, 673 5 .622 461 ,279 73,998 7,473 191,594 18,682 75,340 20,292 59,514 446,893 . 50,161 ( 10.768) 39 .393 S 53 .779 $ 232,308 15,128 24,733 190,315 1,705 464,189 48,198 5 , 902 223 ,122 4 , 822 70,502 11,947 90.494 454�987 �:�►��y� 40,959 � • � . See footnotes to financial statements. 3 �:,,�.�_.. ._ � TOWN 0 F MARANA OOMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUND TYPES - EXHIBIT 3 YEAR ENDED JUNE 30, 1984 General Fund Variance Fav o r a bl e A t �udcret (Unfavorable) Revenues : Taxes $ 256,241 $ 264,934 ($ 8,693) Licenses and permits 942 942 Fines, forfeitures and penalties 26,801 27,125 ( 324) Grants and contributions on Federal and State programs Miscellaneous 5.622 Total revenues 289.606 Expenditures: Administration 73,998 Town attorney 7,473 Public safety 191,594 Magistrate court 18,682 Public works Transportation Capi taL pr oj ect s Total expenditures 291,747 Excess (def iciency) of revenues over (under) expenditures ( 2.141) Fund balance as previously reported, beginning 15,887 Ctanulative effect of change in accounting principle (Note 2) ( 8.728) Fund balance as restated, beginning 7.159 Fund balance, ending ,��218 �� . . 84,354 7,860 186,995 14 , 420 293.629 4.422 ( ��) 10,356 3 87 ( 4,599) ( 4,262) 1 ,882 ( 370) ( 1•Z7�) 370 Z� � 15,517 : : .. . . � : - ; ES .ance �rable ��) 3,693) 942 324) •422 1 � ,356 3 87 ,599) ,262) .882 tI.Z.� ) ,517 ,728) .789 �018 4 S,pecial Revenue Variance Favorable c ua B et (Unfavorable) $ 114,818 114.818 86,500 20,734 7.584 , . . . . � � � $ 56,855 . : 11,160 442 (��9�) ( 40.328} 16 ,� 34,274 ( 2.040) 32 .234 $ 48,761 See footnotes to financial statements. $ 171,673 171,673 75,340 20,292 - 59 .5� 4 _ ].55,1d6 16 ��? 7_ 34,274 (= 2.040) 32 2�d $ 48 761 � TdWN OF MARANA, ARIZONA FOOTNOTES TO COMg INED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1984 1. Siunmary of significant accounting policies: The Town of Marana was incorporated on March 21, 1977, under the provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town operates under a Council-Mayor form of government. All funds and entities related to the Town that are controlled by the Mayor and Council are incl uded in this annual financial report. This control is determined on the basis of budget adoption, taxing authority, and the ability to issue outstanding debt secured by revenues or which is a general obligation of the Town. The Town provides a full range of services including general governmental administration, legal services, public safety, public works and transportation. The accounting policies of the Town conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies: ` A. Fund accounting: � The accounts of the Town are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which , they are to be spent and the means by which spending activities are controlled. T he various funds are grouped, in the financial statements in this report, into two generi c f und types and one broad f und category as follows: Governmental f unds : General fund - This fund is the general operating fund of the Town. It is used to account for aTl financial resources except those required to be accounted for in another fund. Special revenue funds - These funds are used to account for the proceeds of specific revenue sources th�t are legally restricted to expenditure s for specified purposes. 5 �, � _r, . TOWN OF MARANA, ARIZ ONA FOOTNOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 1984 1. Summary of significant accounting policies (continued) : Debt service f und - A1 though such a f und is normally used to accaunt for the accumulation of resources for the payment of general long-term debt principal, interest and related costs, the Town has not established such a fund due to the immateriality of its general long-term debt. B. Measurement focus, fixed assets and long-term liabilities: The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a f und are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financial ` sources) and decreases (expenditures and other financial uses) in net current assets, as appropriate. `Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the general fixed assets group of accounts, rather than in governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs amd gutters, streets and sidewalks, drainage systems, and lighting systems, are not capitalized. No depreciation has been provided on general fixed assets. ' All fixed assets are valued at historical cost. Donated fixed assets are valued at their estimated fair value on the date donated. Long-term liabil ities expected to be f inanced f rom governmental funds are accounted for in the general long-term debt group of accounts, not in the governmental funds. 6 �� TOWN �F MARANA, ARIZ ONA FOOTNOTES �0 CON�INED FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 1984 1. S�mnmary of significant accounting policies (continued) : Because of their spending measurement focus, expenditure reco_gnition of governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long- term amounts are not recognized as governmental f und type expendi tures or f und 1 iabil ities. Tney are instead reported as liabilities in the general long- term debt group of accounts. The aforementioned two account groups are not funds. They are concerned only with the measurement of financial ' position. They are not involved with measurement of results of operations. The' Town no longer carries any inventory. Supplies needed for operations are now being purchased on an as- needed basis. C. Basis of accounting: Basi's of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. �, The governmental funds are maintained on a modified accrual basis. The modified accrual basis of accounting recognizes expenditures on an accrual basis, but revenues are recognized when received, except for material revenues determined to be both measurable and "av'ailable." "Available" meaning collectible within the current period or soon enough thereaf ter to be �:sed to pay liabil ities of the current period. D•' Budgets and budgetary accounting: The budgets formally adopted by the Mayor and Council are prepared on a basis consistent with generally accepted accounting principles. All appropriations lapse at year end, and the budgetary information reflected on the financial statements represents the original adopted budget for fiscal 1984 with no augmentations. 7 0 TCJWN 0 F MARAN A, AR IZ ONA FOOTNOTES TO CONlBINED FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 1984 1. Summary of significant accounting policies (continued) : E. Encumbrances : Encumbrance accounting, under which purchase orders� contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed as an extension of formal budgetary integration in the general fund and special revenue funds. F. Reserves: No reservations of fund balances have been established by the Mayor and Council at the end of fiscal 1984. G. Deferred revenue: Deferred revenue the e xce s s of various grant in the special revenue f unds represents receipts over expenditures incurred on programs. H. Comparative data: Comparative total data for the prior year has been presented in the accompanying general purpose financial statements in order to provide an understanding of changes in the Town's financial position and operations. I. Total coltunns on the combined financial statements: Total columns on the combined financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position or results of operations in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 2. C�nulative effect of change in accounting principle: The Town, for the first time, has adopted the policy of accruing liabilities for compensated absences, including vacation, sick leave and compensatory time. The effect of this change in accounting principle at June 30, 1983, is as follows: 8 2. TOWN OF MARANA, ARIZ ONA FOOTNOTES -TO COMBINED FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 1984 Cumulative effect of change in accounting principle (continued) : De crea se i n f und bal an ce : General fund Special revenue funds 3. Changes in general fixed assets: Balance at June 30, 1983 Additions Del eti ons Balance at June 30, 1984 . . ',; � .: $ 283,115 35,928 ( 22.082) S 296�961 The Town does not currently maintain records that would enable a breakdown of the changes by type of asset. Such information is in the process of being acct�nulated. 4. 5. I Gen�ral long-term debt: In 1979, the Town borrowed $7,134 from the State of Arizona to purchase a 2.5 acre parcel of land. The general long- term debt represents the outstanding principal on this 7� loan at June 30, 1984. Principal and interest is payable in yearly installments of approximately $575. Required individual fund disclosures: Individual interfund receivables and payables at June 30, 1984 were as follows: Interf und Interf und Receivable Payable Special revenue funds: H i ghw ay U se r FE MA FE MA Highway user $ 15,597 2,107 S 17,704 $ 15,597 �� 17,704 0 h$ TOWN OF MARANA, ARIZ ONA FOOTNOTES TO OOMB INED FINANCIAL STATEMENTS (CONTINUED) YEAR IIJDED JUNE 30, 1984 6. Pension plan: The public safety personnel participate in the Arizona Public Safety Personnel Retirement S�stem. Contributions by the Town to the System are subject to actuarial valuations and the Town's position in the S�stem at June 30, 1984, has not yet been determined. Contributions for fiscal 1984 by the Town approximated $4,150. 7. Contingencies: The Town is currently in the process of having audits �performed on certain grant programs. Any contingent liabilities to grantors, if any, as a result of these auc7its have not yet been determined. Town management feels no such liabilities exist at June 30, 1984. 10