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Home My WebLink AboutAnnual Expenditure Limitation Report June 30, 2023 Town of Marana Annual Expenditure Limitation Report June 30, 2023 TOWN OF MARANA ANNUAL EXPENDITURE LIMITATION REPORT Year Ended June 30, 2023 Independent Accountants’ 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 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, 2023, 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. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. 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 December 13, 2023 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART I Year Ended June 30, 2023 25,918,356 1.Economic Estimates Commission expenditure limitation$ 2.Voter-approved alternative expenditure limitation (approved August 4, 2020) 233,493,137 $233,493,137 3.Enter applicable amount from line 1 or line 2 117,040,826 4.Amount subject to the expenditure limitation (total amount from Part II, line C)$ - 5.Board ȃ authorized expenditures necessitated by a disaster the Governor declared- 6.- Board ȃ authorized expenditures necessitated by a disaster the Governor did not declare - 7.Prior ȃ year, voter-approved expenditures to exceed the expenditure limitation for the reporting fiscal year -- $117,040,826 8.Subtotal 9.Board-authorized excess expenditures for the previous fiscal year necessitated by a disaster + the Governor did not declare and the voters did not approve - $117,040,826 10.Total adjusted amount subject to the expenditure limitation $ 116,452,311 11.Amount under (in excess of) 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 Expenditure Reporting System. Signature of chief financial officer: Name and title: Yiannis Kalaitzidis, Finance Director Telephone number:(520)382-3493Date: See accompanying notes. 2 TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT – PART II Year Ended June 30, 2023 Internal GovernmentalEnterpriseservice Description funds funds funds Total $ 94,105,802$ 17,393,932$ 5,541,092$ 117,040,826 A.Amounts reported on the Reconciliation, line D B.Less exclusions claimed: - - - - 1.Debt proceeds - - - - 2.Debt service requirements 3.Dividends, interest, and gains on the sale or redemption of investment - - - - securities - - - - 4.Trustee or custodian - - - - 5.Grants and aid from the federal government 6.Grants, aid, contributions, or gifts from a private agency, organization, or - - - - individual, except amounts received in lieu of taxes - - - - 7.Amounts received from the State of Arizona - - - - 8.Quasi-external interfund transactions 9.Voter-approved amounts accumulated for the purchase of land, and the - - - - purchase or construction of buildings or improvements - - - - 10.Highway user revenues in excess of those received in fiscal year 1979-80 - - - - 11.Contracts with other political subdivisions - - - - 12.Refunds, reimbursements, and other recoveries - - - - 13.Voter-approved exclusions not identified above - - - - 14.Prior years carryforward 15.Qualifying capital improvement expenditures repaid in accordance with - - - - A.R.S. §41-1279.07 16.Total exclusions claimed - - - - C. Amounts subject to the expenditure limitation $ 94,105,802$ 17,393,932$ 5,541,092$ 117,040,826 See accompanying notes. 3 TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT – RECONCILIATION Year Ended June 30, 2023 Internal GovernmentalEnterpriseservice Description funds funds funds Total A.Total expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statements$ 94,661,334 $ 17,647,472$ 5,541,092$ 117,849,898 B.Subtractions: 1.Items not requiring use of current financial resources: a.Depreciation - 5,553,854 - 5,553,854 b.Loss on disposal of capital assets - 393,805 - 393,805 c.Bad debt expense - - - - d.Pension and other postemployment benefits (OPEB) expense - 351,886 - 351,886 e.Claims incurred but not reported (IBNR) - - - - f.Landfill closure and postclosure care costs and pollution remediation - - - - - - - - 2.Expenditures of separate legal entities established under Arizona Revised Statutes 3.Required fees paid to the Industrial Commission of Arizona 141,267 - - 141,267 4.Present value of net minimum lease, financed purchase, and subscription-based information technology arrangement (SBITA) contract payments recorded as expenditures at the agreements’ inception 414,265 - - 414,265 - - - - 5.Involuntary court judgments 6.Total subtractions 555,532 6,299,545 - 6,855,077 C. Additions: 1.Principal payments on long-term debt - 1,149,911 - 1,149,911 2.Capital asset acquisitions - 4,584,353 - 4,584,353 3.Amounts paid in the current year but reported as expenses in previous years: - - - - a.Claims previously recognized as IBNR - - - - b.Landfill closure and postclosure care costs and pollution remediation - 311,741 - 311,741 4.Pension and OPEB contributions paid in the current year 5.Transfers to separate legal entities - - - - 6.Total additions - 6,046,005 - 6,046,005 D.Amounts reported on Part II, line A $ 94,105,802$ 17,393,932$ 5,541,092$ 117,040,826 See accompanying notes. 4 TOWN OF MARANA, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT Year Ended June 30, 2023 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 $351,886 for pension expense consists of the change in the net pension liability recognized in the current year in the Enterprise Funds. The addition of $311,741 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 $1,149,911 for principal payments on long-term debt in the Enterprise Funds consists of $952,911 paid on loans payable and $197,000 paid on bonds payable, during the current fiscal year. The addition for the acquisition of capital assets consists of $4,584,353 paid for various capital assets in the Enterprise Funds. . 5