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Home My WebLink AboutAELR FY10TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT YEAR ENDED JUNE 30, 2010 TOWN OF FOUNTAIN HILLS, ARIZONA TABLE OF CONTENTS YEAR ENDED JUNE 30, 2010 INDEPENDENT AUDITORS' REPORT ANNUAL EXPENDITURE LIMITATION REPORT - PART 1 ANNUAL EXPENDITURE LIMITATION REPORT - PART II 2 3 ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION 4 NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT 5 LarsenAlleti LLP CPAs, Consultants & Advisors www.larsonallen.com INDEPENDENT AUDITORS' REPORT The Auditor General of the State of Arizona and The Honorable Mayor and 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, 2010. 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 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 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 the 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. In our opinion, the Annual Expenditure Limitation Report of the Town of Fountain Hills, Arizona, for the year ended June 30, 2010, 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. Mesa, Arizona November 8, 2010 LarsonAllen LLP (1) An independent member of Nexia International INTERNATIONAL TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART I YEAR ENDED JUNE 30, 2010 1. Economic Estimates Commission expenditure limitation 2. Voter approved alternative expenditure limitation (Approved for fiscal year 2009-2010.) 3. Enter applicable amount from Line 1 or Line 2 4. Amount subject to the expenditure limitation (total amount from Part II, Line C) 5. Board -authorized expenditures necessitated by a disaster not declared by the Governor [Article IX, §20(20)(a), Arizona Constitution] 6. Board -authorized expenditures necessitated by a disaster not declared by the Governor [Article IX, §20(20)(b), Arizona Constitution] 7. Prior -year voter approved expenditures to exceed the expenditure limitation for the reporting fiscal year [Article IX, §20(2)(c), Arizona Constitution] 8. Subtotal 9. Board -authorized excess expenditures for the previous fiscal year necessitated by a disaster not declared by the Governor and not approved by the voters [Article IX, §20(2)(b), Arizona Constitution] 10. Total adjusted amount subject to the expenditure limitation 11. Amount under (in excess of) the expenditure limitation (If excess expenditures are reported, provide an explanation.) $ 28,029,890 14,173,730 14,173,730 $ 28,029,890 14,173,730 $ 13,856,160 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: (L' Name and Title: Julie Ghetti, Deputy Town anager Telephone Number: (480) 816-5113 See accompanying notes to report. (2) Date: November 8, 2010 TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART II YEAR ENDED JUNE 30, 2010 Governmental Enterprise Internal Fiduciary Description Funds Funds Service Funds Funds Total A. Amounts reported on the Reconciliation Line D S 16,792,459 S - $ - S - S 16,792,459 B. Less exclusions claimed: 1 Bond proceeds - - - - - Debt service requirements on bonded indebtedness 1,504,559 - - - 1,504,559 Debt service requirements on other long-term obligations - - - - - 2 Dividends, interest and gains on sale of investment securities - - - - - 3 Trustee or custodian - - - - - 4 Grants and aid from the federal government - - - - - 5 Grants, aid, contributions or gifts from private agency, organization or individual - - - - - 6 Amounts received from the state 74,896 - - - 74,896 7 Quasi -external interfund transactions (town sewer fees a/c 10- 41-217, 10-55-217) - - - - - 8 Amounts accumulated for purchase of land, purchase or construction of buildings or improvements - - - - - 9 Highway user revenues in excess FY 1979-80 1,039,274 - - - 1,039,274 10 Contracts with other political subdivisions - - - - - 11 Refunds, reimbursements and other recoveries - - - - - 12 Voter approved exclusions not identified above - - - - - 13 Prior years carryforward - - - - - 14 Total exclusions claimed 2,618,729 - - - 2,618,729 C. Amounts subject to the expenditure limitation $ 14,173,730 S - $ - $ - S 14,173,730 See accompanying notes to report. (3) TOWN OF FOUNTAIN HILLS, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION YEAR ENDED JUNE 30, 2010 Governmental Enterprise Internal Fiduciary Description Funds Funds Service Funds Funds Total A. Total Expenditures within the fund -based financial statements $ 18,594,607 $ - $ - $ - $ 18,594,607 B. Subtract: 1 Items not requiring use of working capital Depreciation - - - - - Loss on disposal of capital assets - - - - - Bad debt expense - - - - - Claims incurred but not reported - - - - - Landfill Closure - - - - - 2 Expenditures of separate legal entities established under ARS 1,802,148 - - - 1,802,148 3 Present value of net minimum capital leases - - - - - 4 Charges for services paid to Internal Service Funds - - - - - 5 Involuntary court judgments - - - - - 6 Total subtractions 1,802,148 - - - 1,802,148 C. Additions: 1 Principal payments on long-term debt 2 Acquisition of capital assets 3 Claims paid in the current year but reported as expenses incurred but not reported in previous years 4 Landfill closure as expended in previous years 5 Total additions D. Amounts reported on Part II Line A $ 16,792,459 $ See accompanying notes to report. (4) $ - $ - $ 16,792,459 TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT JUNE 30, 2010 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 -based 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 subtraction or addition in the reconciliation that cannot be traced directly to an amount reported in the fund -based 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 Assets for the Enterprise Funds and the Statement of Cash Flows for the Enterprise Funds. NOTE 2 EXPENDITURES OF SEPARATE LEGAL ENTITIES ESTABLISHED UNDER ARS The exclusion claimed for expenditures of separate legal entities established under A.R.S. in the Governmental Funds consists of expenditures from the Eagle Mountain Debt Service Fund, Cottonwoods Special Assessment Fund and the Municipal Property Corporation Debt Service Fund, NOTE 3 DEBT SERVICE REQUIREMENTS ON BONDED INDEBTEDNESS The exclusion claimed for debt service requirements on bonded indebtedness in the Governmental Funds consist of principal retirement and interest expense. NOTE 4 AMOUNTS RECEIVED FROM STATE Amounts received from the State consist of the following: LTAF II $ 36,074 Proposition 202 183,998 Miscellaneous State Grants 4,616 $ 224,688 (5) TOWN OF FOUNTAIN HILLS, ARIZONA NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT JUNE 30, 2010 NOTE 5 HIGHWAY USER REVENUE IN EXCESS OF 1979-80 Highway user revenues (HURF) in excess of fiscal year 1979-80 and LTAF revenues: HURF Fund Revenue HURF Fund Expenditures Less: LTAF Expenditures Less: 1979-80 Revenue Amount Transferred to HURF Debt Service Amount Excluded $ 1,391,100 $ 965,633 (62,772) 136,413 $ 1,039,274 (6)