HomeMy WebLinkAboutAELR FY20Town of Fountain Hills, Arizona
Annual Expenditure Limitation Report
Year Ended June 30, 2020
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2020
CONTENTS PAGE
Independent Accountant’s 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 ACCOUNTANT’S REPORT
The Auditor General of the State of Arizona
The Honorable Mayor and Town Council
of the Town of Fountain Hills, Arizona
We have examined the accompanying Annual Expenditure Limitation Report of the Town of
Fountain Hills, Arizona for the year ended June 30, 2020, 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.
Our examination was conducted 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 referred to above is presented, in all
material respects, in accordance with the uniform expenditure reporting system as described in
Note 1.
Heinfeld, Meech & Co., P.C.
Phoenix, Arizona
November 3, 2020
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TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT – PART I
YEAR ENDED JUNE 30, 2020
1. Economic Estimates Commission expenditure limitation $29,854,752
2. Voter-approved alternative expenditure limitation
(approved N/A) 0
3. Enter applicable amount from line 1 or line 2 $29,854,752
4. Amount subject to the expenditure limitation
(total amount from Part II, Line C) 20,627,084
5. Amount under the expenditure limitation $9,227,668
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: David Pock, Finance Director
Telephone Number: 480-816-5162 Date: November 3, 2020
See accompanying notes to report.
Page 2
InternalGovernmental Enterprise Service FiduciaryFunds Funds Funds Funds TotalA. Amounts reported on theReconciliation, Line D $ 25,610,713 $ - $- $- $ 25,610,713 - B. Less exclusions claimed:- 1 Bond proceeds- Debt service requirements on bonded indebtedness1,664,300 1,664,300 Proceeds from other long-term obligations- Debt service requirements on other long-term obligations- 2Dividends, interest, and gains on the sale or redemption of investment securiti529,402 529,402 3 Trustee or custodian- 4 Grants and aid from the federal government- 5Grants, aid, contributions, or gifts from a private agency, organization, or individual, except amounts received in lieu of taxes171,061 171,061 6 Amounts received from the State of Arizona 51,244 51,244 7 Quasi-external interfund transactions- 8Amounts accumulated for the purchase of land, and the purchase or construction of buildings or improvement- 9 Highway user revenues in excess of those received in fiscal year 1979-82,531,278 2,531,278 10 Contracts with other political subdivisions- 11 Refunds, reimbursements, and other recoveries36,344 36,344 12 Voter-approved exclusions not identified above- 13 Prior years carryforward- 14 Total exclusions claimed4,983,629 --- 4,983,629 C.Amounts subject to expenditure limitatio$ 20,627,084 $- $- $ - $ 20,627,084 TOWN OF FOUNTAIN HILLS, ARIZONAANNUAL EXPENDITURE LIMITATION REPORT - PART IIYEAR ENDED JUNE 30, 2020DescriptionSee accompanying notes to report.Page 3
InternalGovernmental Enterprise Service FiduciaryDescription Funds Funds Funds Funds TotalA.$ 26,395,724 $ - $ - $ - $ 26,395,724 B. Subtractions:1. Items not requiring the use of working capital -Depreciation- Loss on disposal of capital assets- Bad debt expense- Other postemployment benefits expense- Claims incurred but not reported- Pension expense- Landfill closure and postclosure care costs- 2.- 719,663 719,663 3. Required fees paid to the Arizona Department of Revenue65,348 65,348 4. Involuntary court judgments- 5. Total subtractions785,011 - - - 785,011 C. Additions:1. Principal payments on long-term debt- 2. Acquisition of capital assets- 3. Other postemployment benefits paid in the current year but reported as expenses in previous years- 4. Claims paid in the current year but reported as expenses incurred but not reported in previous years- 5. Pension contributions paid in the current year- 6.- 7. Total additions- - - - - D. Amounts reported on Part II, Line A$ 25,610,713 $- $- $ - $ 25,610,713 See accompanying notes to report.TOWN OF FOUNTAIN HILLS, ARIZONAANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATIONYEAR ENDED JUNE 30, 2020Total expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statementsExpenditures of separate legal entities established under Arizona Revised StatutesLandfill closure and postclosure care costs paid in the current year but reported as expenses in previous yearsPage 4
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2020
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. The AELR 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, 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.
NOTE 2 - The exclusion claim for expenditures of separate legal entities established under
Arizona Revised Statutes in the Governmental Funds consists of expenditures from
the Municipal Property Corporation Debt Service Fund, Cottonwoods Maintenance
Fund and the Eagle Mountain Debt Service Fund.
Governmental
Municipal Property Corporation Debt Service Fund $ 305,870
Cottonwoods Maintenance Fund 4,664
Eagle Mountain Debt Service Fund 409,129
$ 719,663
NOTE 3 - The subtraction of $65,348 for required fees paid to Arizona state agencies was paid to
the Arizona Department of Administration pursuant to A.R.S. §42-5041 for
administrative, program, and operating costs incurred in providing administrative and
tax collection services to the Town.
NOTE 4 - The exclusions claimed for debt service requirements on bonded indebtedness in the
Governmental Funds consisted of principal retirement, interest and fiscal fees in the
General Obligation Debt Service Fund.
NOTE 5 - The exclusions claimed for dividends, interest, and gains on the sale or redemption
of investment securities in the Governmental Funds consisted of investment earnings.
The current year exclusion utilized is a follows:
Governmental
Carryforward exclusions as of 6/30/19 $ 90,757
Investment earnings 545,982
Current year exclusion utilized 529,402
Carryforward exclusions as of 6/30/20 $ 107,337
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TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2020
NOTE 6 - Grant revenues, contributions and sponsorships from private organizations are claimed
as exclusions in the year the expenditure occurs and any unused amounts are carried
forward for future years. The current year grant exclusion utilized is a follows:
Proposition 202 $ 117,500
Contributions 48,687
Sponsorships 4,874
Current year exclusion utilized $ 171,061
NOTE 7 - State grant revenues are claimed as exclusions in the year the expenditure occurs and
any unused amounts are carried forward for future years. The current year state grant
exclusion utilized is a follows:
Proposition 302 $ 51,244
Current year exclusion utilized $ 51,244
NOTE 8 - The highway user revenue (HURF) earned in excess of the amounts received in fiscal
year 1979-80 is as follows:
HURF Fund Intergovernmental Revenue $ 2,572,745
Less: Vehicle License Tax Revenues (742,588)
Excludable revenue $ 1,830,157
Carryforward HURF funds as of 6/30/19 $ 1,918,095
HURF Fund expenditures 4,532,702
Less: expenditures of Vehicle License Tax (742,588)
Less: expenditures of non-excludable revenue (1,013,417)
Less: current year investment earnings exclusion utilized (45,419)
Less: amounts transferred from the Capital Projects Fund (200,000)
HURF eligible expenditures in current year 2,531,278
Less: current year HURF Funds utilized (1,830,157)
Less: prior year HURF Funds utilized (701,121)
Carryforward HURF Funds as of 6/30/20 $ 1,216,974
NOTE 9 - Refunds, reimbursements, and other recoveries are claimed as exclusions in the year
the expenditure occurs and any unused amounts are carried forward for future years.
The current exclusions utilized was $36,344.
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