HomeMy WebLinkAbout2011 CDAHUBBUDK DEVELOPMENT AUTHORITY
ITY
A COMPONENT UNIT OF THE CITY OF CHUBBUCK, IDAHO
FINANCIAL STATEMENTS
AS OF SEPTEMBER 0, 2011
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2010
DEATON & i'(IMPArlY, C ARSERFD
HUBBUCK DEVELOPMENT AUTHORITY
TABLE OF CONTENTS
page
Title Page
1
Table of Contents
2
AUDITOR'S REPORTS
3
FINANCIAL STATEMENTS
Government Wide
Statements of net assets
4
Statements of a0vities
6
Governmental Funds
Balance sheets
g
Statements of revenues, expenditures, and changes in fund balances
7
NOTES TO FINANCIAL STATEMENTS
8-11
REQUIRED SUPPLEMENTARY 1NFOIRMATION
12
Statement of revenues and expenditures - budget to actual
19
Notes to the statement of revenues and expenditures - budget to actual
14
REPORTS REQUIRED BY GENERALLY ACCEPTED GOVERNMENT AUDITING
STANDARDS
Report on Compliance and on Intornal Control Over Financial Reporting
Based on an Audit of FinanciaJ Statements Performed in Accordance
With Govern mer;t Auditing Standards
15-16
DEATON &- COM PANY4 CIIAR'I'1~:EtED
Denton tic Company, Chrirti`ml — --
Ccrtifiod Public Accountanii
215 NvAll 91.11. Swhc A
W Ir
Nix:lrP.11r7, 1D 8201 278
( 208) 31- 5825 -
Mermken of Icaho So iel+ or Cenrma I'ulxi- A+Muu4utlo---
?iemlxr� ofAm rxjn Jr :ia:e or L.eo.:..� N1, N AA4v.''1141r11}
12119494211]4a■a1111]1N1"WICTCTILINI 1
To the Board of Commissioners
Chubbuck Development Authority
Chubbuck, Idaho
We have audited the accompanying flnancJat statements of the governmental actiwilies, and each major fund, of Chubbuck
Development Authority, component unit of Cry of Chubbuck, as of and for the years ended September iii, 2011 and 2014, which
collectively comprise the Authorltyr9 basic Financial ataternents as hated In the table of contents. These financial statements are the
teaponsibility of Chubbuck Development Authority's management. Our responsibility is to express. opinions on these financial
statements based an our audit. The prior year summarized comparative information has been derived from the Authority's 2011)
financial statements and, in our report dated May 31, 2011, we expressed unqualified opinions on the respective financial st>aterrients
of the governmental activitles, and each major fund inforrnat;on-
We conducted our audit in aeoordance with auditing Mandardis ge-rerally accepted in the United States of America and the standards
applicable 10 financial at,dlts contalned In Govemmerit Auditing Standards, issued by the Comptrollar General of the United States
Those standards require that we plan and perform the audit to obtain mawmable assurance about whether the flr►anclal statements
aril free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the flnanolal stwiernerns. An audit also Includes assessing Ute accounting principles used and significant $afimates made by
managennantr as well as evaluating the overall financial statement pmsentaMn. We belleve ftt ol+r audit provides a reasonab4e
In our opinion, the financial statements referred to above p¢eaent fairly, in all materlal rerspeuts, the respective financial poli#ion of the
governmental activities, and each rnajcw fund of the Chubbuck DeveloprrieM Authority, as of September 30, 20111 and the respective
changes in flnanci.al position fpr the years then ended in ooillormity with accounting principles generally accepted in the United States
of America.
In accordance with Govemmeni Auditing Standards, wn have also Issued aur report dated March 22, 2012, on our consideratlon of
the Chubbuck Development Aufhoriyia intermal control over financial reporting and on our tests of its compliance with certain
proviisiona of laws, rep ulatlons, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope
of our testing of internal control over firiancial reporting and romptianca and Hie results of that testing, and not to provide an opinion
ori the internal control over financial reporting or ori compliance. That report is an Integral part of an audit performed in accordance
with Government Auditing Slandards and should be considered in assessing the results of our audit.
Accounting principles gerisrally accepted in #tie United States of America (require that budgetary Comparison information on page 13
be presented to auppAernent the basic financial Statements. Such informati on, although not a part of the basic fi nencial stafinTmnts, Is
required by the Governrnenial Accounting St"dards Board, who csmsiders it to be an essential part of financial reporting for placlag
the basic financial siatemnnta in an appropriate operatlonal, economic, or historical context. We hava applied certain Limited
procedures to the requl red supplementary Information in accordance with auditing stanldafds generally accepted in the United Mates
of America, which consisted of inquiries of management about the methods of preparing the information and comparing the
informabun for consistency with mmnagernant's responses to our inquiries, the basic financial statements, 2nd other knowledge we
obtained during our audit of the basic financial statements, We do not express an opiriion or provide any assurance on the
information because the limited procedures do not provide us with suffFdsni evidence to express an opinion provide any assurance.
The Authority has not presented the (required Managemarit's discussion and analysis that accounting principles generally acceptiid in
the United States has determined is necessary to supplement, although not required to be part cif, the basic financial statements.
Pocatello, Idaho
March 22. 2012
CHUBDUCK DEVELOPMENT AUTHORITY
STATEMENTS OF NET ASSETS
SEPTEMBER 30, 2011
WITH COMPARATIVE TOTAL AT SEPTEMBER 3Q. 2010
ASSETS
Cash and cash equivalents
Other receivables
Property tax receivable
LIABILITIES
Accoont5 payable
NET ASSETS
Unrestricted
Governmental Act]vltles
2091
2010
$ 3,656,886
S 3,034.331
25,000
25.000
132,270
94,375
3,814,156 3,163,706
117,356 83.405
117,356 — — 83,905
$ 3.6x96,800 S 3,079,801
The accompanying notes are an integral Pert of Ihas Lt, financial statements
Page 4 DE ETON X COMPANY, CHARTERED
CHUEBUCK DEVELOPMENT AUTHORITY
STATEMENTS OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2011
WITH COMPARATIVE TOTAL FOR THE YEAR ENDED SEPTEMBER 30, 2010
The accompanying notes are an integral part of these financial statements
Page 5 DEATON & COMPANY, C'HARTF:RFD
Governmental Activities
2011
2410
EXPENSES
Administration
_
Project payments
1,227,258
215,234
1,227.258
215,230
REVENUES
Property taxes
1,825,321
1,688,770
Interest and other
18,936
14,742
1, x44.257
1,702,512
CHANGE IN NET ASSETS
616,999
1,457,282
BEGINNING NET ASSETS
3,079,801
1,552,519
ENDING NET ASSETS
3,695,800
5 3,079,801
The accompanying notes are an integral part of these financial statements
Page 5 DEATON & COMPANY, C'HARTF:RFD
ASSETS
Cash and cash equivalents
Other receivables
Property tax receivable
LIABILITIES
Accounts payable
Deferred tax revenues
FUND BALANCES
Unreserved
General fund
OHUBSUCK DEVELOPMENT AUTHORITY
BALANCE SHEETS
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2011
WITH COMPARATIVE TOTAL AT SEPTEMBER 30, 2010
General
Fund 2011
2010
$ 3,656,896 3,659,886 3,039,331
25,000 25,000 25,000
132,270 132,270 99,375
3,814,15$ 3,814,156 $ 3,163,706
117,356 $ 117,356 83,905
110,340 110,340 73.971
— 227,666 227,696 157,876
3.586,460
3,686,460
33.814,156
Amounts reported for governmental activities in the statements of net assets
are different because:
3,586,460 3,005,630
3,596,464 3,005,830
Certain receivables are not current resources and are reported as deferred
revenues in the governmental funds 110,340 73,971
Net Assets of Governmental Actitirities
$ 3.696.800 S 3,079,801
The accompanying notes are an integral part of these financial statements
Page 6 DEATON & COMPANY. C ARTERED
OHUDBUCK DEVELOPMENT AUTHORITY
STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE$
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2011
WITH COMPARATIVE TOTAL FOR THE YEAR ENDED SEPTEMBER 30, 2010
REVENUES
Property taxes
Interest revenue
EXPENDITURES
Projects and grants
EXCESS REVENUES OR (EXPENDITURES)
BEGINNING FUND BALANCE
ENDING FUND BALANCE
Net r,hange In fund balances -total governmental funds
General
Fund
2011
2010
$ 1,788,951
$ 1,789.851
$ 1,667,074
18,936
18.936
13,742
1,807,807
1,807,887
1,671,418
1,227,25E
1,227,258
215,230
1,227,258
1,227,258
215,230
580,828
580.629
1,459.188
3,005.831
3,005,831
1,549,844
$ 3,586,460
3.586,460
$ 3,005,830
Amounts reported fir 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.
Change in Net Assets of Governmental Activities
3 580,620 $ 1,456,186
36,370 31,096
$ 616,999 $ 1,487,282
The acco rn pa ny i n g nvte5 are an integral part of these financial statements
Rage 7 RE ATON &- COV1PA NY, C1FARTFRr.n
CHUBBUCK DEVELOPMENT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - Summary of Significant Acpountinsa Policles
A. Reporting Entity
The Idaho Urban Renewal Law of 1855 authorized the Mayor, with advice and consent of the City Council, to appoint a
board of commissioners for an urban renewal agency to functlon within the municipality of Chrubbuck, provided that the
Council has first passed a rer,,olution ilnding 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 (COA), was found necessary by resolution in
1582 and the board members were appointed thereafker. Unlike other advisory boards to the Clty Council, state Jaye
declares this agency to be "sin 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 Arcountrng Standards Board. the
ODA is included in the Annual Financial Statements of the City of C.hubbuck as a discretely presented component unit.
8. Ewoverrament wide and ]fund financial sfafements
The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net
assets) report information on all of the nonfiiduoiary activities of the government. For the Prost part, the effect of
interfund activity has been removed from these statements,
C. Measurement {coos, basis of accounting, and financial statement preaentatian
The government -wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accown ingr. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of relatsd cash Flows- Property taxes are recognized as revenues in the year for
which they are levied. Grants and similar items arse recognized as revenue as noon as all eligibility requirements
imposed by the provider have been mat.
Governmental fund financial statements are reported using tho current financial resources measurement fours and the
modified acomat basis of accounting. Revenues are recognized as soon as they are both measurable and available,
Revenues are considered to be avaifabie when they are collectible within the current period or sn 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 clays of the end of the current fiscal year,
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 atl 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 authorlty-
As a general rule, the effect of intsrfund activity has been eliminated from the government -wide financial statements
Page 8
DEA' ON &- COMPANY, CHARTERED
CHUBBUGK DEVELOPMENT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - Summary of Significant Accounting Po icles Wontinuedt
D. Assets, lrabifrtries, and not assets or equity
1. Dcposrts and investa?&rrts
Unrestricted cash balances from all funds are combined and ingested 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.
ODA is authorized under State Code to invest in obligations of the U.S_ Treasury, U.S. Government backed institutions,
commercial paper, and repurchase agreements. DA's policy Is to restrict investment to highly liquid money market
accounts,
2. Receivables arra payabies
property taxes receivable are recorded whin certified by the State Tex Com rnission in October of each year. Taxes not
received within sixty days of year-end are deferred. The taxing authnritf�s within each tax increment financing distract
levy property taxes by the third Monday of Septa mber on a market value basis. These taxes are blued to the taxpayers
in Novernber 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 tate first day of January of the succeeding year. Property taxes are
assessed and collected for the Authority by Bannock County,
3_ ,Restdcfed assets reported on the statement of net 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.
4, Capital A,9sets
The Authority has no capital assets_
5. CorrmpLnnsated Absences
The Authority has no liability for compensated absences.
6. f=und Equity
In the fund financial statements, governmental funds report the fallowing classifications of fund balance:
Nonspondabte sierras- 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 iterns.
Restrfcted (terns- 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,
Comma#ted 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 authority for the Authorlty_ Commitments may be
changed or lifted only by the Board taking the same formal action that imposed the constraint originally.
Assigned items -Assignee! items represent the Authority's intent to use certain, resources far 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 ex ss
of the aforementioned dassiftcations,
Page S
DEATON & C OMPA%n. CRARTERED
CHUBBLICK DEVELOPMEMT AUTHORITY
MOTES TO FINANCIAL STATEMENTS
NOTE 2 - Reconcillatfon of Government -wide and Fund Financial 5.1atements
A. Explanation of certain, differences between the grovernmental fund balance sheat acrd the government -wide
statement of net assets.
The governmental fund balance sheet includes the reconciliatlon between fund balance - total governmental funds and
net assets - governmental activities as reported in the government -wide statement of net assets, One elernent of the
reoonciliation explains that "C a rta i rt receivables are not current resources and are reported as deferred reveriues in the
governmental funds". The detail of this difference is as follows:
Deferred Property Taxes
NOTE 3 - Stewardshipr compliance and accountabilfty
A. Budgetary Information
5 110,340
Budgets are adopted on a basis consistent with generally accepted accounting prinoiples, Annual appropriated budgets
are adopted for the general and special revenue funds_ All annuaf appropriations lapse at fiscal year em,
The Board of the Chuhbuck Development Authority does not and is not required to hold public rneetirig in conjunction
with adoption of its annual budget. The new budget is submitted to the board at its meeting in October as pert of the
cash report presented by the Treasurer. When the cash report is approved by the board the budget is approved as
well, Budgets may be amended by the same procedure used to adopt the budget.
NOTE 4. Detailed notes on all funds
A. Deposits an cy in vestm ents
Dash and cash equivalents at yearend consist of the following:
Deposits
Dash in bank
Dash in City of Pocatello allocation pool
The Authority has no investments,
Bank Book
5 131.430 $ 114,399
3,542,487 3,542,487
3,673,917 $ 3,656,886
Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank (financial institute) failure, the
governments deposits may not be returned to it. At year-end, some of the Authority's deposits were held in the City of
Pocatello allocation pool which Include deposits in the State Treasurers lnvestment Pawls (LC'aIP)_ Deposita in the
LGIP are not Insured or guaranteed by the f=ederal Deposit Insurance Corporation, the State of Idaho or any other
government agency. The portion of LIP Funds allocated to the Authority was unknown at yearend,
The State Treasurerrs Investment Pavia (LGIP) operates in accordance with appropriate state laws and regulations.
The reported value of the pools fs the sarne as the fair value of the pool shares.
Deposits and Investment transactions are subject to a varlety of 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,
Page 14
DEATON & C O-MI�aNv, (7111ARTFAFD
CHUBBUCK DEVELOPMENT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 4. Detailed notes on all funds (continued)
A. Deposits and Investments (Continued)
Credit Fisk is the risk that an issuer or a counter party to an investment vviN not fulfill its obligations.
Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single isseer, The
Authority has a Concentra#ion risk of $1,688,413 due to all trust deposits held within one trust department and invested
In the same fund.
B. Receivables
I- Property Taxes
Property tax revenues are recognized and accrued when billed by Bannock County_ CDKprop" taxes, levled by
the third Monday of September on a market value basis, are billed to the taxpayers in November_ Ralf of the real,
personal and mobile home property taxes are due on Decemher 20 and the remainder is due the folirming ,tune 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 t y Bannock County,
. Properly Tax Receivable and Deferred Properfy Taxes
At yearend, property tax receivable and deferred tax revenues consisted of the following:
General fund
NOTE 5. Other information
A. Contingent Llab+litias
Receivables Deferred Tax
132,270 110,340
The majority of the revenue collected by CDA is derived from tax increment financing. Tax increment financing is a
method of segregating a pardon 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 riot large enough to fund any debt incurred
by the district to finance the Improvements within the district.
B. Subsequent Events
Subsequent events were evaluated up to Manch 22, 2012, the date the financial statements were available to be issued.
Page 11
DEATON & COMPANY. CHARTERED
REQUIRED SUPPLEMENTARY INFORMATION
Page 1
DEA:IUN & COM 4Y, Cl[AWHCMr. 1)
CHUBBUCK DEVELOPMENT AUTH0RtTY
STATEMENT OF REVENUES AND EXPJENDITURE8 - BUDGET TO ACTUAL
FOR THE YEAR ENDED SEJPTEMJBEJR 30, 2411
Original Amended
Budget Budget ActuaJ
REVENUESAmounts Amounts Amounts Variance
GENERAL FUND
Property taxes
Interest revenue
EXPENDITURES
GENERALFUND
Admrnistra#inn and other expenses
Project5 and grants
Playground equipment
Hawthorne Pavilion
Evans Lane
Cf ubbuck Road
WOW system
Hiline Road
Afton Meadows
Adams 8trestl Park Lawn
Allstate project
Hockey rink
NET CHANGE IN FUND IBALANCE
BEGINNING FUND BALANCE
ENDING, FUND BALANCE
1,663,000
$ 1,683,000
$ 1,7B8,951
$ 125,981
15,000
15,004
16,635
3,936
1,676.040
1,678,000
1.807,887
124,887
" - 3,609 (3,809)
14,400
10,000
10,000
15,000
15,000
3,594
11,406
100,000
100,000
86,895
13,105
400,ODO
400,000
194,61)7
205,399
2 30, 000
230,000
27,847
202,353
210,000
210,040
705,057
(495.057)
_
-
18,804
(1a,804)
-
593
(593)
11000r000
1,000,000
139,005
86 0, 995
18,000
18,000
47,453
(28,453)
1,983,OOr3
1,983,000
1,227,258
755,742
(305,400)
$ 31)5,440)
580,624
885,628
3,005,831
3,586,460
Page 13 DENFON s COMPANY, CHARTERF,I)
CHIJBIBUCK DEVELOPMENT AUTHORITY
NOTES TO REQUIRED SUPPLEMENTAL INFORMATION
NOTE 1 - EA ELMS jB- L�OET
PROJECTS
The Authority did not budget sufficient &xpenditures for increased administration expenditures
in the following projects,
Other expenses
Hiline toad
Afton Meadows
Adams Street! Park Lawn
Hockey rink
REVENUE IN EXCESS OF BUDGET
Revenues in excess of budget and decreased expenditures in other projects were used to pay
under -budgeted expenditures.
14
DFATON b► COMPANY, CHARTERED