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HomeMy WebLinkAbout2016 CDAThe urban renewal agency for the City of Chu bbuck, Idaho CHUBBUCK DEVELOPMENT AUTHORITY A COMPONENT UNIT OF THE CITY OF CHUBBUCK, IDAHO AUDITED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2016 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2015 CHUBBUCK DEVELOPMENT AUTHORITY TABLE OF CONTENTS Page Title Page 1 Table of Contents 2 AUDITOR'S REPORTS 3-5 FINANCIAL STATEMENTS Government Wide Statements of net position 5 Statements of activities 6 Governmental Funds Balance sheets 7 Statements of revenues, expenditures, and changes in fund balances 8 NOTES TO FINANCIAL STATEMENTS 10-14 REQUIRED SUPPLEMENTARY INFORMATION 15 Statement of revenues and expenditures - budget to actual 16 Notes to the statement of revenues and expenditures - budget to actual 17 REPORTS REQUIRED BY GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 18-19 1 INDEPENDENT AUDITOR'S REPORT To the Board of Commissioners Chubbuck Development Authority Chubbuck, Idaho Report on the Financial Statements 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, 2016, 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's Responsibility for the Financial Statements 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 America; 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. Auditor's Responsibility 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. 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, 2015, and the respective changes in financial position for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the budgetary comparison information on page 16 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. Management has omitted the management and discussion analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. Other Information We also have 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, 2015, which are not presented 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2017, 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 March 28, 2017 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENTS OF NET POSITION SEPTEMBER 30, 2016 WITH COMPARATIVE TOTAL AT SEPTEMBER 30, 2015 ASSETS Cash and cash equivalents Property tax receivable LIABILITIES Accounts payable NET POSITION Committed Governmental Activities 2016 2015 2,662,082 $ 3,141,045 2,701,262 3,229,739 12,606 348,277 12,606 348,277 $ 2,688,656 $ 2,881,462 The accompanying notes are an integral part of these financial statements Page 6 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2016 WITH COMPARATIVE TOTAL FOR THE YEAR ENDED SEPTEMBER 30, 2015 EXPENSES Project payments Grant to CIAWCA Professional services Administration REVENUES Property taxes Interest and other CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION Governmental Activities 2016 2015 $ 2,389,063 $ 1,070,456 228,000 228,000 3,240 3,240 2,725 2,623,028 1,301,696 2,355,384 2,221,381 74,838 26,661 2,430,222 2,248,042 (192,806) 946,346 2,881,462 1,935,116 $ 2,688,656 $ 2,881,462 The accompanying notes are an integral part of these financial statements Page 7 CHUBBUCK DEVELOPMENT AUTHORITY BALANCE SHEETS GOVERNMENTALFUNDS SEPTEMBER 30, 2016 WITH COMPARATIVE TOTAL AT SEPTEMBER 30, 2015 Accounts payable $ Nonmajor $ 12,606 $ 348,277 Chubbuck Pine Ridge Mall 34,757 82,482 General Urban Renewal Urban Renewal 47,363 430,759 Fund District Fund District Fund 2016 2015 ASSETS 2,651,624 2,275 2,653,899 228,000 Cash and cash equivalents $ $ 2,659,807 $ 2,275 $ 2,662,082 $ 3,141,045 Property tax receivable 39,180 - 39,180 88,694 $ $ 2,698,987 $ 2,275 $ 2,701,262 $ 3,229,739 Accounts payable $ $ 12,606 $ $ 12,606 $ 348,277 Deferred tax revenues 34,757 34,757 82,482 47,363 47,363 430,759 FUND BALANCES Committed 2,651,624 2,275 2,653,899 228,000 Unassigned - - - 2,570,980 2,651,624 2,275 2,653,899 2,798,980 $ $ 2,698,987 $ 2,275 Amounts reported for governmental activities in the statements of net position are different because: Certain receivables are not current resources and are reported as deferred revenues in the governmental funds 34,757 82,482 Net Position of Governmental Activities $ 2,688,656 $ 2,881,462 The accompanying notes are an integral part of these financial statements Page 8 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 WITH COMPARATIVE TOTAL FOR THE YEAR ENDED SEPTEMBER 30, 2015 EXPENDITURES Administration - 2,725 2,725 - Projects and grants 2,617,063 - 2,617,063 1,298,456 Professional services 3,240 3,240 3,240 2,620,303 2,725 2,623,028 1,301,696 NET CHANGE IN FUND BALANCE (142,356) (2,725) (145,081) 967,662 BEGINNING FUND BALANCE 2,793,980 5,000 2,798,980 1,831,318 ENDING FUND BALANCE $ $ 2,651,624 $ 2,275 $ 2,653,899 $ 2,798,980 Net change in fund balances -total governmental funds $ (145,081) $ 967,662 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. (47,725) (21,316) Change in Net Position of Governmental Activities $ (192,806) $ 946,346 The accompanying notes are an integral part of these financial statements Page 9 Nonmajor Chubbuck Pine Ridge Mall General Urban Renewal Urban Renewal Fund District Fund District Fund 2016 2015 REVENUES Property taxes $ - $ 2,403,109 $ - $ 2,403,109 $ 2,242,697 Interest revenue - 38,665 - 38,665 21,661 Other revenue - 36,173 - 36,173 5,000 - 2,477,947 - 2,477,947 2,269,358 EXPENDITURES Administration - 2,725 2,725 - Projects and grants 2,617,063 - 2,617,063 1,298,456 Professional services 3,240 3,240 3,240 2,620,303 2,725 2,623,028 1,301,696 NET CHANGE IN FUND BALANCE (142,356) (2,725) (145,081) 967,662 BEGINNING FUND BALANCE 2,793,980 5,000 2,798,980 1,831,318 ENDING FUND BALANCE $ $ 2,651,624 $ 2,275 $ 2,653,899 $ 2,798,980 Net change in fund balances -total governmental funds $ (145,081) $ 967,662 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. (47,725) (21,316) Change in Net Position of Governmental Activities $ (192,806) $ 946,346 The accompanying notes are an integral part of these financial statements Page 9 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 unit. B. Government -wide and fund financial statements 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 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 District Fund, 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 Pineridge District Fund, a special revenue fund, accounts for the Authority's operations within the revenue allocation area of that district. The Pineridge District was established in 2016 and has a termination date in the year 2036. 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. Page 10 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary 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 equity 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 no capital assets. 5. Compensated Absences The Authority has no liability for compensated absences. 6. Fund Equity In 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. Page 11 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies (Continued) D. Assets, liabilities, and net position or equity (Continued) 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 authority 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. NOTE 2 - Reconciliation of Government -wide and Fund Financial Statements A. Explanation of certain differences between the governmental fund balance sheet and the government -wide statement of net position. The governmental fund balance sheet includes the reconciliation between fund balance - total governmental funds and net assets - governmental activities as reported in the government -wide statement of net assets. 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 NOTE 3 - Stewardship, compliance and accountability A. Budgetary Information $ 34,757 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 new budget is submitted to the board at its meeting in October as part 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 and Investments Cash and cash equivalents at yearend consist of the following: Deposits Cash in bank of CDA General Fund Page 12 Bank Book $ 2,662,082 $ 2,662,082 $ 2,662,082 $ 2,662,082 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 4. Detailed Notes on All Funds (continued) A. Deposits and Investments (Continued) The Authority has no investments. 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 a variety 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. 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 coverd by FDIC and are insured up to $250,000. The Authority's concentration credit risk was $2,412,082. B. 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 NOTE 5. Other Information A. Contingent Liabilities Receivables Deferred Tax $ 39,180 $ 34,757 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. Page 13 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 5. Other Information (Continued) A. Contingent Liabilities (Continued) 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. B. Subsequent Events Subsequent events were evaluated up to March 28, 2017, the date the financial statements were available to be issued. Page 14 REQUIRED SUPPLEMENTARY INFORMATION Page 15 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENT OF REVENUES AND EXPENDITURES - BUDGET TO ACTUAL CHUBBUCK URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2016 REVENUES Property taxes Interest revenue Other revenue EXPENDITURES Administration and other expenses Projects and grants NWSI grant Poline Water Line Allstate Stuart Addition Streets Country Acres Streets Dell Road Whitaker Road Parks/Tennis Courts Fiber Optic NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Original Amended Budget Budget Actual Amounts Amounts Amounts Variance $ 2,100,000 $ 2,100,000 $ 2,403,109 $ 303,109 18,000 18,000 38,665 20,665 - - 36,173 36,173 2,118,000 2,118,000 2,477,947 359,947 4,737 (4,737) 228,000 228,000 228,000 - - 41,257 (41,257) 250,000 250,000 250,000 1,400,000 1,400,000 1,584,486 (184,486) - - 46,213 (46,213) - - 5,000 (5,000) 600,000 600,000 460,293 139,707 200,000 200,000 130 199,870 - - 187 (187) 2,678,000 2,678,000 2,620,303 57,697 $ (560,000) $ (560,000) Page 16 (142,356) $ 417,644 2,793,980_ $ 2,651,624 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO REQUIRED SUPPLEMENTAL INFORMATION NOTE 1 - EXPENSES IN EXCESS OF BUDGET PROJECTS The Authority did not budget sufficient expenditure for increased expenditure in the following projects. Poline Water Line Stuart Addition Streets Country Acres Streets Dell Road REVENUE IN EXCESS OF BUDGET Revenues in excess of budget and decreased expenditures in Whitaker Road, Parks and Tennis Courts were used to pay under -budgeted expenditures. 17 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH 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, 2016, 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 March 28, 2017. Internal Control Over Financial Reporting 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. Compliance and Other Matters 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. Purpose of this Report 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 March 28, 2017