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HomeMy WebLinkAbout2021 CDAThe urban renewal agency for the City of Chubbuck, Idaho CHUBBUCK DEVELOPMENT AUTHORITY A COMPONENT UNIT OF THE CITY OF CHUBBUCK, IDAHO AUDITED FINANCIAL STATEMENTS AS OF SEPTEMBER 30. 2021 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2020 Page Title Page 1 Table of Contents 2 AUDIT®R'� REP®RTS 3-5 Government Wide Statements of net position 10 Statements of activities 11 Governmental Funds Balance sheets 12 Statements of revenues, expenditures, and changes in fund balances 13 iVOTES TO FIPVAf�CIAL �TATEIViEi�TS 14-19 REQUIRED SUPPLEMENTARY Ii�IFORIVIATIObiI 20 Schedule of revenues and expenditures -budget to actual -General Fund 21 Schedule of revenues and expenditures -budget to actual - Chubbuck Urban District Fund 22 Schedule of revenues and expenditures -budget to actual -Pine Ridge Urban District Fund 23 Notes to the statement of revenues and expenditures -budget to actual 24 LjjUL Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 25-26 2 Deaton & Company, Chartered Certified Public Accountants 215 North 9th, Suite A Pocatello, Idaho 83201-5278 (208) 232-5825 Members of Idaho Society of Certified Public Accountants Members of American Institute of Certified Public Accountants To the Board of Commissioners Chubbuck Development Authority Chubbuck, Idaho We have audited the accompanying financial statements of the governmental activities and each major fund of the Chubbuck Development Authority, a component unit of the City of Chubbuck, Idaho, as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of Americas this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. �1l CSI t_! �� �'.- =,.�n �;i•�ilit Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund information of the Chubbuck Development Authority, as of September 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management discussion and analysis and budgetary comparison information on pages 6 - 9 and 20 - 22, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information We have also previously audited, in accordance with auditing standards generally accepted in the United States of America, the Authority's basic financial statements for the year ended September 30, 2020, which are shown as summarized comparative totals and not as fully disclosed comparative financials with the accompanying financial statements and we expressed unmodified opinions on the respective financial statements of the governmental activities, and the aggregate remaining fund information. That audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Chubbuck Development Authority's basic financial statements as a whole. The summarized comparative information is consistent, in all material respects, with the audited financial statements from which it has been derived. �i �- �` ,� • l Ci ", C� �' �� i'ell• I 1 1 tl C� I I I l C� C {� �1 ;�� In accordance with Government Auditing Standards, we have also issued our report dated January 14, 2022, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Chubbuck Development Authority's internal control over financial reporting and compliance. Chubbuck, Idaho January 14, 2022 L EAT � MI . t. MY, Current assets Cash and cash equivalents $ Accounts receivable Prepaid expense Reimbursement receivable Property tax receivable Restricted cash Noncurrent assets Non -depreciable capital assets Current liabilities Accounts payable Disbursements in excess of cash Current portion of long-term debt Current portion of bond payable Noncurrent liabilities Note payable Bond payable s NST �Oo���OCoN Restricted for district Unrestricted 2,740,773 $ 2,721,042 70,000 2,975 - 1,222 117451 161452 352,980 - 3,108,179 21808716 1,622,524 1,622,524 11622,524 11622,524 4, 730, 703 4,431,240 179,929 88,403 - 2,729 2351616 1501000 206,000 6213545 2411132 - 221,233 1,656,500 - 1,656,500 2,278,045 2,653,778 (201,120) $ 2,452,658 221,233 462,365 2,416,951 1,551,924 $ 3,968,875 The accompanying notes are an integral part of these financial statements 10 CHUBBUCK DDCVE OPMENT AUTHOR TY �TATE V E 11 5 LJ AL; VCZ) Fid)' T nE "E E DED TH C O M PA A IVE TOTALS O HE YEAR ENDED SEPTEMBER 30, 2020 General government Chubbuck Urban Renewal District Pine Ridge Mall Urban Renewal District Charges for services Property taxes Interest Grant revenue Other 30,914 2,716,894 1, 960, 574 4,708,382 (4,708,382) 2, 952, 591 12,709 173,623 53,242 3,192,165 (1,516,217) 3, 968, 875 $ 2,452,658 I�- 6,348 899,258 47,247 952.853 70,000 70,000 (882,853) 2,707,024 18,912 275 2,726,211 1,843,358 2,125,517 $ 319681875 The accompanying notes are an integral part of these financial statements 11 Cash and cash equivalents Accounts receivable Prepaid expense Reimbursement receivable Property tax receivable Restricted cash LI�BILITI�� Accounts payable Excess cash disbursements Deferred tax revenues Restricted Committed Unassigned -Ulafffc �- �L�� F� ��Ali IT #'I BALANCE SHEETS GOVERNMENTAL FUNDS SEPTEMBER 02021 T i. P s., t1 VEE TOTA L AT SEPTEMBER 30, 2020 i� �G��c����cCc G�ia�e I9ge G�6iall Genera i Urban Renewal Urban Rernewal Fund District Fund District Fund 20211 2020 $ 331663 $ 2,677, 378 $ 297732 $ 21740,773 $ 217211042 701000 27975 - - 27975 11222 - 111451 - 111451 161452 3521980 3521980 - $ 36,638 $ 2,688,829 $ 382,712 $ 3,108,179 $ 2,808,716 1, 500 178,429 $ 11,334 189,763 - 2,271,066 228,000 35,138 35,138 - $ 179,929 $ 88,403 2,729 117334 61862 191,263 97,994 382, 712 2,499,066 382,712 2,688,829 $ 382,712 lf�: l,. +" �,�, !",,� f,i, •;,r,�' � � I � �� I"I i - i 1. �t..�.,,.,�t� �,_ �;,.� Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds, net of accumulated depreciation of $0. Certain receivables are not current resources and are reported as deferred revenues in the governmental funds Long-term liabilities are not due and payable in the current period and therefore, are not reported in the governmental funds: Note payable Bond payable Net Position of Governmental Activities $ 2,653,778 $ 2,416,951 228,000 228,000 351138 651771 2,9161916 217101722 1, 622, 524 1, 622, 524 11, 334 6, 862 (235,616) (371,233) 1,862,500) - $ 2,4521658 $ 319687 The accompanying notes are an integral part of these financial statements 12 875 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2020 REVENUES Property taxes Interest revenue Grant revenue Other revenue Service and contract revenue EXPENDITURES Administration Construction Grants Professional services Other expenses Debt services Principal Interest and fiscal charges Capital outlays EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from debt NET CHANGE IN FUND BALANCE Nonmajor Chubbuck Pine Ridge Mall General Urban Renewal Urban Renewal Fund District Fund District Fund 2021 2020 $ - $ 21683,738 $ 264,381 $ 21948,119 $ 2,721,704 86 121501 122 12,709 18)912 1523890 20,733 1731623 - 195 - - 195 275 53,048 - 53,048 701000 281 219021177 2851236 311871694 21810,891 70 41070 20 41160 74,135 211695018 - 21169,018 624,349 228,000 - 2287000 2281000 261244 14,493 - 40,737 31998 41600 286,930 11780,021 210711551 71988 135,617 30,000 165,617 300,000 14,383 178,034 1921417 - 362,203 30 914 218521511 1,9881075 41871,500 11600,673 (30,633) 49,666 (1,702,839) (1,683,806) 1,210,218 - - 1,890,000 1,890,000 - (30,633) 491666 1871161 206,194 112101 218 BEGINNING FUND BALANCE 651771 27449,400 195,551 217101722 11 500,504 ENDING FUND BALANCE $ 35,138 $ 21499,066 $ 3821712 $ 21916,916 $ 2,710,722 Net change in fund balances -total governmental funds $ 206,194 $ 11210,218 Amounts reported for governmental activities in the statements of activities are different because: Governmental funds only report taxes received within sixty days as current fund revenues. All taxes receivable are treated as revenues in the statement of activities. Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the costs of those assets is depreciated over their estimated useful lives: Capital asset purchases Governmental funds report principal repayment on debt as an expenditure and debt issuance as an other financing source. Long-term notes provide current financial resources to the governmental funds, but issuing debt increases long term liabilities in the Statement of Net Position. The discount on the long-term debt is an other financial resource in the government fund but decreases the net liability in the Statement of Net Position: Principal repayment on debt Long term debt proceeds Long term debt discount Change in Net Position of Governmental Activities 4,472 (14,680) - 362,203 165,617 285,617 (1,890,000) - (21500) - $ (115161217) $ 11 The accompanying notes are an integral part of these financial statements 13 843,358 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 1 -Summary of Significant Accounting Policies A. Reporting entity The Idaho Urban Renewal Law of 1965 authorized the Mayor, with advice and consent of the City Council, to appoint a board of commissioners for an urban renewal agency to function within the municipality of Chubbuck, provided that the Council has first passed a resolution finding that one or more such areas are necessary, and that there is a need for an urban renewal agency to function in the City. Chubbuck's urban renewal agency, Chubbuck Development Authority (CDA), was found necessary by resolution in 1992 and the board members were appointed thereafter. Unlike other advisory boards to the City Council, state law declares this agency to be "an independent public body corporate and politic" and gives it a wide range of authority to effectuate urban renewal. Under generally accepted accounting principles, as adopted by the Governmental Accounting Standards Board, the CDA is included in the Annual Financial Statements of the City of Chubbuck as a discretely presented component B. Government -wide and fund financial statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the government. For the most part, the effect of interfund activity has been removed from these statements. The fund financial statements provide information about the Authority's funds. The emphasis of fund financial statements is on major funds, each displayed in a separate column. The Authority reports the following major funds: The General Fund is the Authority's primary operating fund. It accounts for all financial resources, except those accounted for in another fund. The Chubbuck Tax Increment Financing (TIF) District Fund (Chubbuck District), a special revenue fund, accounts for the Authority's operations within the revenue allocation area of that district. The Chubbuck District was established in 1992 and has a termination date in the year 2022. The Pine Ridge Tax Increment Financing District (TIF) District Fund (Pine Ridge District), a special revenue fund, accounts for the Authority's operations within the revenue allocation area of that district. The Pine Ridge District was established in 2016 and has a termination date in the year 2036, except for revenues which may be received in 2037. The revenue generated in the districts' fund are restricted to be used for the district and within the TIF district boundaries. C. Measurement focus, basis of accounting, and financial statement presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the authority considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. 14 NOTE 1 -Sum CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS of Significant Accounting Policies Continued' C. Measurement focus, basis of accounting, and financial statement presentation (continued) Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the authority. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. D. Assets, liabilities, and net position or fund balance 1. Deposits and investments Unrestricted cash balances from all funds are combined and invested in investments authorized under Idaho State Code. Earnings from these investments are credited to the funds based on the monthly balance of cash in each fund. Cash includes cash on hand, deposits and other investments which are immediately convertible to cash or have a maturity of less than 90 days. CDA is authorized under State Code to invest in obligations of the U.S. Treasury, U.S. Government backed institutions, commercial paper, and repurchase agreements. CDA's policy is to restrict investment to highly liquid money market accounts. 2. Receivables and payables Property taxes receivable are recorded when certified by the State Tax Commission in October of each year. Taxes not received within sixty days of year-end are deferred. The taxing authorities within each tax increment financing district levy property taxes by the third Monday of September on a market value basis. These taxes are billed to the taxpayers in November and are due December 20. Real property taxes not paid constitute a lien on the property when entered on the real property assessment roll as delinquent on the first day of January of the succeeding year. Property taxes are assessed and collected for the Authority by Bannock County. 3. Restricted assets It is the Authorities policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. When unrestricted resources are spent, the order of spending is committed (if applicable), assigned (if applicable) and unassigned. 4. Capital Assets The Authority has purchased land properties within the Chubbuck TIF District as capital assets. The land is to be developed by the authority, sold to a third party for further development, or donated. It is the policy of the Authority to capitalize assets that are expected to last longer than one year and cost exceeds $5,000. 5. Compensated Absences The Authority has no liability for compensated absences. 6. Fund Balance n the fund financial statements, governmental funds report the following classifications of fund balance: Nonspendable items- This category includes a portion of net resources that cannot be spent because of their form or because they must be maintained intact. This includes inventories and prepaid items. 15 • �. t t. _ � • �• .t. � �� t � • � ®. Assets, liabilities, and net position o� fund balance (continued) �. .: r r ' � �. Restricted items- This category includes resources where limitations are imposed by external entities, such as grantors and creditors, or to comply with laws and regulations of governments. Committed items -This category includes amounts that can only be used for the specific purposes determined by a formal action of the Authority's highest level of decision-making for the Authority. Commitments may be changed or lifted only by the Board taking the same formal action that imposed the constraint originally. Assigned items -Assigned items represent the Authority's intent to use certain resources for specific purposes. The Board may establish the intended use of these funds for a designated purpose. Unassigned items- Represents the remainder of the Authority's equity in governmental fund -type balances in excess of the aforementioned classifications. � • �� • A. explanation of certain differences between the gove�n�ental fund ,balance sheet and the gove�nrnenf� wide statement of net position. The governmental fund balance sheet includes the reconciliation between fund balance -total governmental funds and net position -governmental activities as reported in the government -wide statement of net position. One element of the reconciliation explains that "Certain receivables are not current resources and are reported as deferred revenues in the governmental funds". The detail of this difference is as follows: Deferred Property Taxes Capital assets are made up of the following non -depreciable assets: Land In 2020, the Authority purchased land using anon -interest barring note of $700,000. The implied interest rate of 3.25% was calculated to be $43,150. Long-term Note Payable Long-term Note Discount On October 15, 2020, the Authority approved the issuance of a bond in the amount of $1,940,000 at a discount of $50,000. The bond carries an interest rate at 6.750%. Long-term Bond Payable Long-term Bond Discount 16 $ 11,334 $ 1,622,524 $ 250,000 (14,383) $ 235,617 $ 1,910,000 (47,500) $ 1,862,500 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 3 -Stewardship, Compliance and Accountability A. Budgetary information Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general and special revenue funds. All annual appropriations lapse at fiscal year end. The Board of the Chubbuck Development Authority does not and is not required to hold public meeting in conjunction with adoption of its annual budget. The City Council approved the 2020 budget and previous fiscal years. The Authority approved the 2021 budget and will approve future budgets. The new budget is submitted to the board at its meeting in October as part of the cash report presented by the Treasurer. This is when the budget is approved. Budgets may be amended by the same procedure used to adopt the budget. NOTE 4 -Detailed Notes on All Funds A. Deposits and investments Cash and cash equivalents at yearend consist of the following: Deposits Cash in bank Escrow Outstanding checks The Authority has no investments. Bank $ 2, 740, 793 352,980 Book $ 2, 740, 773 352,980 (20) - $ 3,093,753 $ 3,093,753 Deposits -Custodial Credit Risk for deposits is the risk that, in the event of bank (financial institute) failure, the government's deposits may not be returned to it. Deposits and Investment transactions are subject to risks. Interest Rate Risk is the risk that changes in interest rates will adversely affect the value of an investment. This risk in null since the Authority has no investments. Credit Risk is the risk that an issuer or a counter party to an investment will not fulfill its obligations. Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Because the Authority has all trust deposits held within one trust department and invested in the same fund a concentration risk exists. Deposits are held in an institution covered by collateralized accounts or federal depository insurance up to $250,000. The Authority's concentration credit risk was $0. B. Changes in Capital Assets A summary of capital assets at year end is as follows: Beginning Balance Non -depreciable assets Additions Deletions Ending Balance Land $ 1,651,291 $ - $ 14,383 $ 1,636,908 $ 1,651,291 $ - $ 14,383 $ 1,636,908 17 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 4 -Detailed Notes on All Funds (Continued) C. Receivables 1. Property Taxes Property tax revenues are recognized and accrued when billed by Bannock County. CDA's property taxes, levied by the third Monday of September on a market value basis, are billed to the taxpayers in November. Half of the real, personal and mobile home property taxes are due on December 20 and the remainder is due the following June 20. Other property taxes are due December 20. Real property taxes not paid constitute a lien on the property when entered on the real property assessment roll as delinquent on the first day of January of the succeeding year. Property taxes are assessed and collected for CDA by Bannock County. 2. Property Tax Receivable and Deferred Property Taxes At yearend, property tax receivable and deferred tax revenues consisted of the following: General fund Chubbuck Urban Renewal District Fund Pine Ridge Mall Urban Renewal District Fund D. Long-term Debt Receivables $ - 11,451 Deferred Tax $ - 11, 334 $ 11, 451 $ 11, 334 In 2020, CDA has issued a note to provide funds for purchase of land in the Chubbuck District. The note shall provide $700,000 towards the purchase price and be paid in annual installments of not less than $150,000. The note is non-interest bearing but has an implied rate of 3.25%. The final payment is due December 31, 2022 when the entire remaining balance shall be due in full. Current portion Noncurrent portion Long-term note payable Long-term debt implied interest Face Value $ 250, 000 Discount $ 14,384 Book Value $ 235,616 $ 250,000 $ 14,384 $ 235,616 Beginning Ending Balance Additions Reductions Balance $ 400,000 $ - $ (150,000) $ 250,000 (28,767) - 14,383 (14,384) $ 371,233 $ - $ (135,617) $ 235,616 On October 15, 2020, the Authority approved the issuance of a bond in the amount of $1,940,000 at a discount of $50,000. The bond carries an interest rate at 6.750% and a maturity date of November 1, 2037. The bond is being used to provide monies to reimburse the developer of the Pine Ridge Mall for eligible costs and thereby provide more capital for further development in the Pine Ridge Mall Project Area. The Pine Ridge Mall Project is within the Pine Ridge Tax Increment Financing District (TIF) District. The bond will be payable from and secured by the revenues generated from the TIF District tax increments. Current portion Noncurrent portion Long-term bond payable Long-term debt interest Face Value Discount Book Value $ 206,000 $ 2,500 $ 203,500 1,704,000 45,000 1,659,000 $ 1,910,000 $ 47,500 $ 1,862,500 Beginning Ending Balance Additions Reductions Balance $ 1,940,000 $ - $ (30,000) $ 1,910,000 (50,000) - 2,500 (47,500) $ 1,890,000 $ - $ (27,500) $ 1,862,500 �� .� '� . � '� ,L, T F � � ,• � ,2, ,t ,l, �IOiE � -Other Information A. Contingent liabilities The majority of the revenue collected by CDA is derived from tax increment financing. Tax increment financing is a method of segregating a portion of the property taxes paid on properties within an urban renewal district to fund improvements for which the district was formed. This is accomplished by freezing the market value of property within the district. A contingent liability exists when the market value increase in the district is not large enough to fund any debt incurred by the district to finance the improvements within the district. . • �, �: The Authority has committed to pay for the portion of the Northwest Sewer Interceptor project lying inside the Chubbuck Urban Renewal District boundary. That portion has been calculated at $2,287,000. This total is to be paid in an annual payment of $228,000 to Chubbuck Impact Area Waste Water Collection Authority, which began in FY 2013. C. Scabsecyuent events Subsequent events were evaluated up to January 14, 2022, the date the financial statements were available to be issued. The Authority will implement a new Tax Increment Financing (TIF) district for fiscal year 2022 and fiscal year 2023. The TIF district for 2022 will be titled as the Northside Crossing Urban Renewal District. The TIF district for 2023 will be titled as the Harvest Springs Urban Renewal District. During the year the Authority was not subject to any tax abatements. i�7 �'I�Q�O �'C© �MG�pf���v�i C���9�aGa3� ���[�Oo �G�� � �D o0�� CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES -BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2021 REVENUES Interest revenue Other revenue Service and contract revenue EXPENDITURES Administration Professional services Other expenses NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Original Amended Budget Budget Amounts Amounts Actual Amounts $ - $ - $ 86 - - 195 - - 281 21 70 26,244 4,600 30,914 (30,633) 65,771 $ 35,138 Variance $ 86 195 281 (70) (26,244) (4,600) (30,914) $ (30,633) .� � :� � . ,t. � -. .. �.. Original Budget Amounts RE�/ENUES Property taxes $ 2,625,000 Interest revenue - Grant revenue - Service and contract revenue - 2,625,000 �)��EN®ITIJRES Administration - Construction 1,972,785 Grants - I:. Professional services 35,000 Other expenses 467,215 Debt services 150,000 2,625,000 . , ,t_ � � .�. c. _� :� �:, s. ,� Amended Budget Amounts $ 2,625,000 $ 2,625,000 1,972,785 35, 000 467,215 150, 000 2,625,000 22 Actua Amounts 2,683,738 12, 501 152, 890 53.048 2,902,177 4, 070 2,169,018 228, 000 14,493 286, 930 150,000 2,852,511 49,666 2,449,400 $ 2,499, 066 Variance $ 58,738 12,501 152, 890 53.048 277,177 (4,070) (196,233) (228,000) 20, 507 180,285 (227, 511) $ 49,666 REVEf�UES Property taxes Interest revenue Grant revenue :t �. �. r Administration Other expenses Debt services Principal Interest and fiscal charges ,- a. • • --• • •-• a. :� :: ,1. .�, :: � 1 is .t, Original Budget Amounts $ 175, 000 $ 175,000 Amended Budget Amounts 175,000 $ 175, 000 Actual Amounts Variance 264,381 $ 89,381 122 122 20,733 20,733 285,236 110,236 20,000 20,000 20 19,980 155,000 155,000 1,780,021 (1,625,021) 175, 000 175,000 30, 000 178, 034 1, 988, 075 (30,000) (178,034) (1,813,075) (1,702,839) (1,702,839) - 1, 890, 000 1,890,000 23 187,161 195,551 $ 382,712 1,890,000 1, 890, 000 $ 187,161 N®TE � e BUDGETARY INFORMATION The Authority did not budget sufficient amounts for the following expenditures: Administration and other e>cpenses Professional services The Authority used available fund balance to cover the budget deficit. The Authority did not budget sufficient amounts for the following expenditures: Administration and other expenses Construction The under -budgeted expenditures were paid using revenues in excess of budget and unspent revenues from other expenses. The Authority did not budget sufficient amounts for the following expenditures: Other expenses Debt service Principle and interest expense The under -budgeted expenditures were paid using revenues and proceeds from debt in other financing sources in excess of budget and unspent revenues from administration expenses. N®T'� � e LEGAL ADOPTION OF BUDGET The Authority is required by State law to adopt annual budgets on all governmental funds that cover a period from October 1, through September 30. The City Council approved the Fiscal Year End 2020 budget and previous fiscal, years. The Authority approved the Fiscal Year End 2021 budget and will approve future budgets. 24 Deaton & Company, Chartered Certified Public Accountants 215 North 9th, Suite A Pocatello, Idaho 83201-5278 (208) 232-5825 Members of Idaho Society of Certified Public Accountants Members of American Instihrte of Certified Public Accountants STATEMENTS PERFORMED N ACCORDANCE W TH GOVERNMENT AUDITING STANDARDS To the Board of Commissioners Chubbuck Development Authority Chubbuck, Idaho We have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsd issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund, and the aggregate remaining fund information of Chubbuck Development Authority, as of and for the years ended September 30, 2021, and the related notes to the financial statements, which collectively comprise Chubbuck Development Authority's basic financial statements, and have issued our report thereon dated January 14, 2022. In planning and performing our audit, we considered Chubbuck Development Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Chubbuck Development Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Chubbuck Development Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. As part of obtaining reasonable assurance about whether Chubbuck Development Authority's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Chubbuck, Idaho January 14, 2022