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Home My WebLink AboutAELR FY09TOWN OF FOUNTAIN HILLS, ARIZONA [ ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2009 r TOWN OF FOUNTAIN HILLS, ARIZONA REPORT ON AUDIT OF ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2009 Table of Contents Page Independent Auditors' Report Independent Auditors' Report on the Annual Expenditure Limitation Report 1 Annual Expenditure Limitation Report Part 1 2 Part 11 3 Reconciliation 4 Notes to Annual Expenditure Limitation Report 5 h 1� 7 7 7 ImHEINFELD, MEECH & CO., P.C. CERTIFIED PUBLIC ACCOUNTANTS 3033 N. Central Avenue, Suite 300 Phoenix, Arizona 85012 Tel (602) 277-9449 Fax (602) 277-9297 INDEPENDENT AUDITORS' REPORT The Auditor General of the State of Arizona The Honorable Mayor and Members of the Town Council 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, 2009. This report is the responsibility of the Town of Iountain Hills' management. Our responsibility is to express an opinion on this report based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 7 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 accounting principles generally accepted in the United States of America. 7 In our opinion, the Annual Expenditure Limitation Report of the "Town of Fountain Hills, Arizona, for the year ended June 30, 2009, 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 management, and for 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. HEINFELD, MEECH & CO., P.C. Certified Public Accountants 7 January 25, 2010 TUCSON . PHOENIX . FLAGSTAFF www.heinfeldmeech.com F 7 TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART I YEAR ENDED NNE 30, 2009 1. Economic Estimates Commission expenditure limitation $ 26,927,970 2. Amount subject to the expenditure limitation (Part II, Line C) 18,163,476 3. Amount under the expenditure limitation $ 8,764,494 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 Fiscal Officer: Name and Title: Telephone Number: (480) 837-2003 Richard L. Davis, Town Manager Date: January 25, 2010 Page 2 See accompanying notes to report. rn TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART 11 YEAR ENDED JUNE 30, 2009 Governmental Description Funds Total A. Amount reported on the Reconciliation, Line C $ 20,752,122 $ 20,752,122 B. Less exclusions claimed: 1. Debt service requirements on bond indebtedness (Note 2) 1,454,245 1,454,245 7 2. Amounts received from the State (Note 3) 153,971 153,971 3. Highway user revenues in excess of those received in fiscal year 1979-80 (Note 4) 980,430 980,430 4. Total exclusions claimed 2,588,646 2,588,646 C. Amount subject to expenditure limitation $ 18,163,476 $ 18,163,476 I I Page 3 See accompanying notes to report. TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION YEAR ENDED .TUNE 30, 2009 Governmental Description Funds A. Total expenditures reported within the fund -based Total FM financial statements $ 22,467,011 $ 22,467,011 B. Subtractions: 1. Expenditures of separate legal entities established under Arizona Revised Statutes (Note 6) c 2. Total subtractions Amount reported on Part 11, Line A 1,714,889 1,714,889 1,714,889 1,714,889 $ 20,752,122 $ 20,752,122 Page 4 See accompanying notes to report. TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2009 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 expenditures, expenses, or deductions of certain revenues specified in the Arizona Constitution, Article IX, §20 from the total expenditures, expenses, or deductions reported in the fund financial statements. In accordance with the UERS requirements, a note to the AELR is presented below for any exclusion claimed on Part 11 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, and the Combining Statement of Revenues, Expenditures and Changes in Fund Balances for the Non -major Governmental Funds. NOTE 2 - The exclusions claimed for debt service requirements on bonded indebtedness in the Governmental Funds consisted of principal retirement and interest and fiscal charges. NOTE 3 - The $153,971 received from the State includes $108,000 of LTAF and $45,971 of LTAF II revenues as intergovernmental revenues on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds. NOTE 4 - Highway user revenue in excess of fiscal year 1979-80 consists of the following: Balance at June 30, 2008 $ 438,535 r 2008-09 revenue 1,468,335 Amount transferred to HURF debt service 115,843 Amount excluded (980,430) Carryforward 1,042.283 NOTE 5 - The Town has the following carryforward in the General Fund to offset further expenditures for purposes of the Annual Expenditure Limitation Report: Balance at June 30, 2008 $ 2,960,289 Investment income 77.141 r� Balance at June 30, 2009 $ 3,237T430 i Page 5 7 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2009 NOTE 6 - The subtraction of $1,714,889 for separate legal entities established under Arizona Revised Statutes consists of expenditures of special assessment districts and municipal property corporation included within the Town's reporting entity, but not included in the Economic Estimates Commission base limit calculations, and are reported in the Governmental Funds category in the fund financial statements: Special Municipal Assessment Property Districts Corporation Total Principal retirement $ 210,000 $ 885,000 $ 1,095,000 Interest and fiscal charges 159,510 460,379 619,889 Total $ 369,510 $ 1,345,379 $ 1,714,889 FM Page 6 i