HomeMy WebLinkAboutCouncil Presentation 12-18-2018 Annual Expenditure Limitation ReportANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2018 Financial Reports
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Contents
Independent Accountants' Report
Annual Expenditure Limitation Report - Part I
Annual Expenditure Limitation Report - Part II
Annual Expenditure Limitation Report - Reconciliation
Notes to the Annual Expenditure Limitation Report
TOWN OF MARANA, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
FOR THE YEAR ENDED JUNE 30, 2018
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
December 5, 2018
Tempe • Scottsdale • Casa Grande www.hhcpa.com
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DescriptionGovernmentalFundsEnterpriseFundsInternalService Funds FiduciaryFunds TotalA. Amounts reported on the Reconciliation, Line D 88,077,341$ 30,654,415$ 4,744,663$ -$ 123,476,419$B. Less exclusions claimed:1. Bond proceeds Debt service requirements on bonded indebtedness - - - - - Proceeds from other long-term obligations - - - - - Debt service requirements on other long-term obligations - - - - - 2.Dividends, interest, and gains on the sale or redemption of investment securities - - - - - 3.Trustee or custodian - - - - - 4.Grants and aid from the federal government - - - - - 5.Grants, aid, contributions, or gifts from a private agency, organization, or individual, except amountsreceived in lieu of taxes - - - - - 6.Amounts received from the State of Arizona - - - - - 7.Quasi-external interfund transactions - - - - - 8.Amounts accumulated for the purchase of land, and the purchase or construction of buildings orimprovements- - - - - 9.Highway user revenues in excess of those received in fiscal year 1979-80 -- - -- 10.Contracts with other political subdivisions - - - - - 11.Refunds, reimbursements, and other recoveries - - - - - 12.Voter-approved exclusions not identified above (attach resolution)- - - - - 13.Prior years carryforward - - - - - 14 Qualifying capital improvement expenditures repaid in accordance with A.R.S. §41-1279.07- - - - - 15Total exclusions claimed - - - - - C. Amounts subject to the expenditure limitation 88,077,341$ 30,654,415$ 4,744,663$-$ 123,476,419$YEAR ENDED JUNE 30, 2018ANNUAL EXPENDITURE LIMITATION REPORT-PART IITOWN OF MARANA, ARIZONASee accompanying notes.4
DescriptionGovernmentalFundsEnterpriseFundsInternalService Funds FiduciaryFunds TotalA.Total expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statements 88,165,429$ 12,393,418$ 4,744,663$ -$ 105,303,510$B. Deductions:1. Items not requiring use of working capital:Depreciation - 3,573,969 - - 3,573,969 Loss on disposal of capital assets - 1,341,902 - - 1,341,902 Bad debt expense - - - - - Other postemployment benefits (OPEB) expense - - - - - Claims incurred but not reported (IBNR) - - - - - Landfill closure and postclosure care costs - - - - - Pension Expense - 171,249 - - 171,249 2. Expenditures of separate legal entities established under Arizona Revised Statutes - - - - - 3. Required fees paid to the Arizona Department of Revenue 88,088 - - - 88,088 4. Present value of net minimum capital lease and installment purchase contract payments recorded - - - - - as expenditures at inception of the agreements - - - - - 5. Involuntary court judgments - - - - - 6. Total subtractions 88,088 5,087,120 - - 5,175,208 C. Additions: 1. Principal payments on long-term debt -378,173 - - 378,173 2. Acquisition of capital assets - 22,773,021 - - 22,773,021 3. Claims paid in the current year but reported as expenses incurred but not reported in previous years - - - - - 4. Landfill closure and postclosure care costs paid in the current year but reported as expenses in previous years - - - - - 5. Pension Contributions - 196,923 - - 196,923 6. Total additions - 23,348,117 - - 23,348,117 D. Amounts reported on Part II, Line A88,077,341$ 30,654,415$ 4,744,663$-$ 123,476,419$TOWN OF MARANA, ARIZONAANNUAL EXPENDITURE LIMITATION REPORT-RECONCILIATIONYEAR ENDED JUNE 30, 2018See accompanying notes.5
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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