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Home My WebLink AboutAELR FY02TOWN OF FOUNTAIN HILLS, ARIZONA REPORT ON EXAMINATION OF ANNUAL EXPENDITURE LIMITATION REPORT FISCAL YEAR ENDED JUNE 305 2002 TOWN OF FOUNTAIN HILLS, ARIZONA TABLE OF CONTENTS FISCAL YEAR ENDED JUNE 30, 2002 Contents Independent Auditor's 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 CRONSTROM & TRBOVICH CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT The Auditor General of the State of Arizona and the Honorable Mayor and Town Council of the Town of Fountain Hills, Arizona We have audited the accompanying Annual Expenditure Limitation Report of the Town of Fountain Hills, Arizona, for the year ended June 30, 2002. This report is the responsibility of the Town of Fountain Hills, Arizona's management. Our responsibility is to express an opinion on this report based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the report is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the report. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall report presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying Annual Expenditure Limitation Report was prepared for the purpose of complying with the uniform expenditure reporting system as discussed in Note 1, and is not intended to be a presentation in conformity with generally accepted accounting principles. In our opinion, the Annual Expenditure Limitation Report of the Town of Fountain Hills, Arizona, for the year ended June 30, 2002, referred to above presents fairly, in all material respects, the information required by the uniform expenditure reporting system on the basis of accounting described in Note 1. This report is intended solely for the information and use of the Town and filing with the Auditor General of the State of Arizona and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. ln.Owatow\ + 4k&&1k \) Rc . Cronstrom & Trbovich, P.C. December 3, 2002 8706 EAST MANZANITA DRIVE. SUITE 100 • SCOTTSDALE, ARIZONA 85258 • (480) 348-1 102 • FAX (480) 348-1 104 A PROFESSIONAL CORPORATION TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART I YEAR ENDED JUNE 30, 2002 1. EEC Expenditure Limitation $ 13,724,197 2. Voter -approved alternative expenditure limitation 3. Enter amount from line 1 or 2 13,724,197 4. Amount subject to expenditure limitation (total amount form Part U, line C) 13,724,197 5. Board -authorized expenditures necessitated by a disaster declared by the Governor and not approved by the voters (Art. IX, 20[2][a], Arizona Constitution) 6. Board -authorized expenditures necessitated by a disaster not declared by the Governor and approved by the voters (Art. IX, 20[2][b], Arizona Constitution) 7. Prior -year voter approval of expenditures to exceed expenditure limitation for reporting fiscal year (Art. IX, 20[2][c], Arizona Constitution) 8. Subtotal 13,724,197 9. Board -authorized excess expenditures for the previous fiscal year not approved by the voters (Art. IX, 20[2][b], Arizona Constitution) 10. Total adjusted amount subject to the expenditure limitation 13,724,197 11. Amount under (in excess of) the expenditure limitation (If excess expenditures are reported, provide an explanation.) $ _ 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 requir o t e um expenditure reporting system / / , Signature of Chief Fiscal Officer: Name and Title: Telephone No: (480) 837-2003 Date: December 3, 2002 2 TORN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART 11 YEAR ENDED JUNE 30, 2002 Special Debt Capital General Revenue Service Projects Trust Enterprise Description Fund Funds Funds Funds Funds Funds Total A. Amounts repotted on the Reconciliation, Line D S 12,890,037 S 2.066,526 S 2,276,833 S 15,071,443 S - S S 32,304,839 B. Less exclusions claimed: 1. Bond proceeds 13,750,000 13,750,000 Debt service requirements on bonded indebtedness 2,276.833 2,276,833 Proceeds from other long-term obligations - Debt service requirements on other long-term obligations - 2. Dividends, interest and gains on sale or redemption of investment securities 188,681 188,681 3. Trustee or custodian - 4. Grants and aid from Federal government 118,043 118,043 5. Grants, aid, contributions or gifts from a private agency, organization or individual except amounts received in lieu of taxes - 6. Amounts received from the State 185,553 185,553 7. Quasi -external interfund transactions S. Amounts accumulated for purchase of land, and purchase or construction of buildings or improvements - 9. Highway user revenues in excess of fiscal year 1979-80 1,254,816 1,254,816 10, Contracts with other political subdivisions - I I. Refunds, reimbursements, and other recoveries - 12. Voter -approved exclusions not identified above (attach resolution) - 13. Prior years carry -forward claimed 806.716 806,716 14. Total exclusions claimed 995,397 1.558.412 2,276,833 13,750.000 - 18,580,642 C. Amount subject to expenditure limitaiton $ 11.894.640 $ 508,114 $ - $ 1,321,443 S - S - $ 13,724,197 3 TOWN OF FOUNTAIN HILLS, ARIZONA ANlv'UAL EXPENDITURE LIMITATION REPORT - RECONCILIATION YEAR ENDED JUNE 30, 2002 Special Debt Capital General Revenue Service Projects Trust Enterprise Description Fund Funds Funds Funds Funds Funds Total A. Total expenditures (and expenses) reported within the financial statements $ 12,890,037 $ 2,066,526 S 2,602.180 $ 15,071,443 $ - $ - $ 32,630,186 B. Deductions: 1. Items not requiring use of working capital Depreciation _ Loss on disposal of fixed assets _ Bad debt expense _ 2. Expenditures of special assessment districts, which were not included in base limit _ 3. Present value of net minimum capital lease and installment purchase contract payments recorded as expenditures at the inception of the agreements _ 4. Charges to other funds in excess of Internal Service Fund expenses _ 5. Involuntary courtjudgements 6. Expenditures of Special Districts 325,347 325,347 7. Accrued compensated absences - S. Total deductions - - 325,347 - _ _ 325347 C. Additions: I. Principal payment on long-term debt 2. Acquisition of fixed assets _ 3. Internal Service Fund expenses not charged to other funds _ 4. Increase in self insured retention 5. Total additions D. Amounts reported on Part 11, Line A S 12,890,037 S 2,066.526 $ 2.276.833 5 15,071,443 $ - $ - $ 32,304,839 4 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2002 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Annual Expenditure Limitation Report (AELR) is presented on the basis of accounting prescribed by the uniform expenditure reporting system (UERS), as required by Arizona Revised Statutes §41-1279.07, which excludes expenditure/expenses of certain revenues specified in the Arizona Constitution, Article IX, §20 from the total expenditures/expenses reported in the annual general- purpose financial statements. In accordance with the UERS requirements, a note to the AELR is presented below for any exclusion claimed on Part II and each deduction or addition in the Reconciliation that cannot be traced directly to an amount reported in the annual general-purpose financial statements. All references to financial statement amounts in the following notes refer to the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Funds for the General, Special Revenue, Debt Service, and Capital Projects Funds. NOTE 2 - DEBT SERVICE REQUIREMENTS ON BONDED INDEBTEDNESS The exclusion claimed for debt service requirements on bonded indebtedness in the Debt Service Funds consists of principal retirement, interest expense and fiscal charges. NOTE 3 - GRANTS AND AID FROM FEDERAL GOVERNMENT Grants and aid from federal government consists of the following: COP Fast 1 4 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUKE 30, 2002 NOTE 4 - AMOUNTS RECEIVED FROM THE STATE Amounts received from the State consist of the following: Special Revenue Funds LTAF $ 114,861 LTAF II 54,461 GITEM Grant 16,231 Total 1�A5 NOTE S - HIGHWAY USER REVENUE IN EXCESS OF 1979-80 Highway user revenues in excess of fiscal year 1979-80: 2000-01 revenue $ 1,254,816 1979-80revenue -0- Amount excluded (1,254,816) Carryforward $ -0- Z TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2002 NOTE 6 - GENERAL FUND CARRYFORWARD The Town has the following carry forward to offset further expenditures for purposes of the Annual Expenditure Limitation Report: Balance at June 30, 2001 Interest income Current year use Prior years cant' forward claimed Balance at June 30, 2002 7 $ 1,220,345 188,681 (188,681) (806,716) 62