HomeMy WebLinkAboutCouncil Presentation 02/01/2022 Independent Auditors ReportMARANA
ESTABLISHED 1 9 7 7
ANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2021
� Henry+Horne
Town of Marana
Annual Expenditure Limitation Report
Year Ended June 30, 2021
Table of Contents
Independent Accountants' Report
Annual Expenditure Limitation Report—Part I
Annual Expenditure Limitation Report—Part II
Annual Expenditure Limitation Report—Reconciliation
Notes to Annual Expenditure Limitation Report
Page
1
2
3
4
5
Henry Horne
Offering You More
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, 2021, and the related notes to the report. 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.
We conducted our examination 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.
Tempe, Arizona
January 4, 2022
Tempe Scottsdale Casa Grande www.hhcpa.com
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TOWN OF MARANA, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2021
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 Fund Net Position for the Proprietary Funds, Statement of Cash Flows for the
Proprietary Funds, and the Employee Retirement Systems disclosure.
NOTE 2 RECONCILIATION DEDUCTIONS AND ADDITIONS
The subtraction of $345,132 for pension expense consists of the change in the net pension liability
recognized in the current year in the Enterprise Funds. The addition of $247,756 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 $1,060,501 for principal payments on long-term debt in the Enterprise Funds
consists of $874,501 paid on loans payable and $186,000 paid on bonds payable, during the
current fiscal year. The addition for the acquisition of capital assets consists of $10,895,452 paid for
various capital assets in the Enterprise Funds.
The subtraction of $126,248 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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