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ANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2018
TOWN OF MARANA, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
FOR THE YEAR ENDED JUNE 30, 2018
ContentsPage
Independent Accountants' Report1
Annual Expenditure Limitation Report - Part I3
Annual Expenditure Limitation Report - Part II4
Annual Expenditure Limitation Report - Reconciliation
Notes to the Annual Expenditure Limitation Report
INDEPENDENT ACCOUNTANTS’ REPORT
The Auditor General of the State of Arizona and
The Honorable Mayor and Town Council
of the Town of Marana, Arizona
We have examined the accompanying Annual Expenditure Limitation Report of Town of Marana,
Arizona for the year ended June 30, 2018. The Town’s management is responsible for presenting
this report in accordance with the uniform expenditure reporting system as described in Note 1. Our
responsibility is to express an opinion on this report based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether this report is presented in
accordance with the uniform expenditure reporting system in all material respects. An examination
involves performing procedures to obtain evidence about the amounts and disclosures in the report.
The nature, timing, and extent of the procedures selected depend on our judgment, including an
assessment of the risks of material misstatement of the report, whether due to fraud or error. We
believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion.
In our opinion, the Annual Expenditure Limitation Report of Town of Marana, Arizona, referred to
above is presented in accordance with the uniform expenditure reporting system as described in
Note 1 in all material respects.
Casa Grande, Arizona
December5, 2018
Tempe Scottsdale Casa Grande www.hhcpa.com
4
-
$
$
Funds Total
Fiduciary
$ 123,476,419 - - - - - - - - - -
- - - - - -$ 123,476,419
Internal
-
$ - - - - - - - - - -
- - - - - - -$-
Service Funds
-
Funds
Enterprise
A
$ 4,744,663 - - - - - - - - - -
- - - - - - -$ 4,744,663
-----------------
Funds
Governmental
- - -$30,654,415
$ 30,654,415 - - - - - - - -
- - - - -
YEAR ENDED JUNE 30, 2018
TOWN OF MARANA, ARIZON
ANNUAL EXPENDITURE LIMITATION REPORT-PART II
41-1279.07
§
Debt service requirements on bonded indebtedness Proceeds from other long-term obligations Debt service requirements on other long-term obligations redemption of investment securities
agency, organization, or individual, except amountsreceived in lieu of taxes the purchase or construction of buildings orimprovementsfiscal year 1979-80 resolution)
Dividends, interest, and gains on the sale or Trustee or custodian Grants and aid from the federal government Grants, aid, contributions, or gifts from a private Amounts received from
the State of Arizona Quasi-external interfund transactions Amounts accumulated for the purchase of land, and Highway user revenues in excess of those received in Contracts with other
political subdivisions Refunds, reimbursements, and other recoveries Voter-approved exclusions not identified above (attach Prior years carryforward accordance with A.R.S. Total exclusions
claimed
1.Bond proceeds 2.3.4.5.6.7.8.9.10.11.12.13.14Qualifying capital improvement expenditures repaid in 15
DescriptionA.Amounts reported on the Reconciliation, Line D88,077,341B. Less exclusions claimed:C.Amounts subject to the expenditure limitation88,077,341
See accompanying notes.
5
$
$
Funds Total
Fiduciary
$ 105,303,510 3,573,969 1,341,902 - - - - 171,249
- 88,088 - - - 5,175,208 378,173 22,773,021
- - 196,923 23,348,117$ 123,476,419
Internal
$ - - - - - - - - - -
- - - - - - - - - -$-
Service Funds
378,173
A
Funds
Enterprise
$ 4,744,663 - - - - - - - - - -
- - - - - - - - -$4,744,663
Funds
88,165,42988,077,341
Governmental
$ 12,393,418 3,573,969 1,341,902 - - - - 171,249
- - - - - 5,087,120 22,773,021 - -
196,923 23,348,117$30,654,415
YEAR ENDED JUNE 30, 2018
TOWN OF MARANA, ARIZON
ANNUAL EXPENDITURE LIMITATION REPORT-RECONCILIATION
A
Depreciation -Loss on disposal of capital assets -Bad debt expense -Other postemployment benefits (OPEB) expense-Claims incurred but not reported (IBNR)-Landfill closure and postclosure
care costs -Pension Expense-under Arizona Revised Statutes -installment purchase contract payments recorded -as expenditures at inception of the agreements - incurred but not reported
in previous years -current year but reported as expenses in previous years -
Total expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statements
1.Items not requiring use of working capital:2.Expenditures of separate legal entities established 3.Required fees paid to the Arizona Department of Revenue88,0884.Present value of net
minimum capital lease and 5.Involuntary court judgments -6.Total subtractions 88,0881.Principal payments on long-term debt -2.Acquisition of capital assets -3.Claims paid in the current
year but reported as expenses4.Landfill closure and postclosure care costs paid in the 5.Pension Contributions-6.Total additions -
DescriptionA.B. Deductions:C. Additions: D.Amounts reported on Part II, Line
See accompanying notes.
TOWN OF MARANA, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2018
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the Uniform
Expenditure Reporting System (UERS), as required by Arizona Revised Statutes §41-1279.07, and
in accordance with the voter-approved alternative expenditure limitation adopted November 8,
2016, as authorized by the Arizona Constitution, Article IX, §20 (9).
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, Statement of Revenues, Expenses, and
Changes in Net Position for the Proprietary Funds, Statement of Cash Flows for the Proprietary
Funds, the Statement of Changes in Fiduciary Net Position for the Fiduciary Funds, and the
Employee Retirement Systems disclosure.
NOTE 2 RECONCILIATION DEDUCTIONS AND ADDITIONS
The subtraction of $171,249 for pension expense consists of the change in the net pension liability
recognized in the current year in the Enterprise Funds. The addition of $196,923 for pension
contributions paid in the current year consists of the required pension contributions made to the
Arizona State Retirement System from the Enterprise Funds.
The addition of $378,173 for principal payments on long-term debt in the Enterprise Funds consists
of $219,485 paid on loans payable and $158,688 paid on bonds payable, during the current fiscal
year. The addition for the acquisition of capital assets consists of $22,764,448 paid for various
capital assets in the Enterprise Funds.
The subtraction of $88,088 for fees required by law to be paid to Arizona state agencies consists of
payments to the Arizona Department of Revenue as required by Laws 2015, Chapter 323, HB2617,
which were recorded as general government expenditures.
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