HomeMy WebLinkAbout2017 CDA1 1
MDEVELOPMENT RUTHORITY'.
The 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, 2017
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2016
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
6
Statements of activities
7
Governmental Funds
Balance sheets
8
Statements of revenues, expenditures, and changes in fund balances
9
NOTES TO FINANCIAL STATEMENTS
10-14
REQUIRED SUPPLEMENTARY INFORMATION
15
Schedule of revenues and expenditures - budget to actual - General Fund
16
Schedule of revenues and expenditures - budget to actual - Chubbuck Urban Renewal
District Fund
17
Notes to the statement of revenues and expenditures - budget to actual
18
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 19-20
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 ofCerlified Public Accountants
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, 2017, 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.
Opinion
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, 2017, 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 pages 16 - 18 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,
2016, 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 December
20, 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,ldaho
December 20, 2017
CHUBBUCK DEVELOPMENT AUTHORITY
STATEMENTS OF NET POSITION
SEPTEMBER 30, 2017
WITH COMPARATIVE TOTAL AT SEPTEMBER 30, 2016
ASSETS
Cash and cash equivalents
Reimbursement receivable
Property tax receivable
LIABILITIES
Accounts payable
NET POSITION
Unrestricted
Governmental Activities
2017 2016
$ 21724,612 $ 2,662,082
77,253
271616 39,180
2,829,481
297,944
297,944
$ 2,531,537
2,701,262
12,606
12.606
$ 2,688,656
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, 2017
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2016
EXPENSES
Project payments
Grant to CIAWCA
Professional services
Transfer out
Administration
REVENUES
Property taxes
Service and contract revenue
Interest and other
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in (out)
CHANGE IN NET POSITION
BEGINNING NET POSITION
ENDING NET POSITION
Governmental Activities
2017 2016
$ 215565073 $ 21389,063
228,000 2283000
3,240
3,240
201 2,725
2,7871514 22623,028
2,538,869 2,355,384
77,253
14,273 74,838
216302395 21430,222
(3,240)
(157,119) (192,806)
2,688,656 2,881,462
$ 2,531,537 $ 2,688,656
The accompanying notes are an integral part of these financial statements
Page 7
CHUBBUCK DEVELOPMENT AUTHORITY
BALANCE SHEETS
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2017
WITH COMPARATIVE TOTAL AT SEPTEMBER 30, 2016
FUND BALANCES
Committed 2,501,941 21074 22504,015 2,653,899
Unassigned
21501,941 23074 21504,015 21653,899
$ $ 2,827,407 $ 23074
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
Nonmajor
the governmental funds
273522
341757
Chubbuck
Pine Ridge Mall
General
Urban Renewal
Urban Renewal
Fund
District Fund
District Fund
2017
2016
ASSETS
Cash and cash equivalents
$
$ 297223538
$ 2,074
$
21724,612
$
21662,082
Reimbursement receivable
77,253
77,253
Property tax receivable
27,616
27,616
39,180
$8271407
$ 2,074
$
2,829,481
$
21701,262
LIABILITIES
Accounts payable
$
$ 297,944
$
$
297,944
$
123606
Deferred tax revenues
27,522
27,522
34,757
3253466
3253466
47,363
FUND BALANCES
Committed 2,501,941 21074 22504,015 2,653,899
Unassigned
21501,941 23074 21504,015 21653,899
$ $ 2,827,407 $ 23074
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
273522
341757
Net Position of Governmental Activities
$ 2,531,537 $ 2,6883656
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
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2017
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2016
REVENUES
Property taxes
Interest revenue
Other revenue
Service and contract revenue
EXPENDITURES
Administration
Projects and grants
Professional services
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in (out)
NET CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
Nonmajor
Chubbuck Pine Ridge Mall
General Urban Renewal Urban Renewal
Fund District Fund District Fund 2017 2016
$ 2,546,104 $ $ 2,546,104 $ 2,403,109
14,273 14,273 38,665
36,173
77,253 77,253
21637,630 21637,630 2,477,947
-
3,240
-
2,784,073
201 201
2,7843073
31240
2,725
21617,063
31240
31240
21784,073
201 2,787,514
2,623,028
$
(149,884)
$
(145,081)
(31240)
(146,443)
(201) (149,884)
(14501)
(149,683) (201) (149,884) (145,081)
2,651,624 2,275 2,653,899 2,798,980
ENDING FUND BALANCE $ - $ 2,501,941 $ 2074
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.
, $
2,504,015
$
2,653,899
Net change in fund balances -total
governmental funds
$
(149,884)
$
(145,081)
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.
(7,235)
(47,725)
Change in Net Position of Governmental Activities $ (157,119) $ (192,806)
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 as>o
so have been recognized as
measurable and available only
As a general rule, the effect of
D. Assets, liabilities, and ne
1. Deposits and investments
ciated with the current fiscal period are all considered to be susceptible to accrual and
revenues of the current fiscal period. All other revenue items are considered to be
when cash is received by the authority.
interfund activity has been eliminated from the government -wide financial statements.
t position or equity
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.
are adopted for the
Unassigned items- Represents the remainder
of the Authority's
equity in governmental
fund -type balances in excess
of the aforementioned classifications.
Annual appropriated
budgets
are adopted for the
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
27 522
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
with adoption of its annual budget. The new budget is submitted to the board at its
hold public meeting in conjunction
cash report presented by the Treasurer. When the cash report is approved by the
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
Page 12
meeting in October as part of the
board the budget is approved as
$
2,724,612
$
2,724,612
$
2,724,612
$
2,724,612
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 $2,474,612.
8. Receivables
7. 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
Receivables
Pineridge Mall Urban Renewal District Fund
NOTE 5 -Other Information
A. Contingent Liabilities
The majority of the revenue collected by CDA is derived from tax increment financin
method of segregating a portion of the property taxes paid on properties within an
improvements for which the district was formed. This is accomplished by freezing the
the district.
Page 13
Deferred Tax
27,616 27,522
$ 27,616 $ 27,522
g. Tax increment financing is a
urban renewal district to fund
market value of property within
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.
8. Subsequent Events
Subsequent events were evaluated up to December 20, 2017, the date the financial statements were available to be
issued.
Page 14
REQUIRED SUPPLEMENTARY INFORMATION
Page 15
CHUBBUCK DEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES AND EXPENDITURES -BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
REVENUES
EXPENDITURES
Administration and other expenses
REVENUES OVER (UNDER)EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in (out)
NET CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
ENDING FUND BALANCE
Original Amended
Budget Budget Actual
Amounts Amounts Amounts Variance
$ - $ - $ - $ -
- - 3,240
(3,240)
- 3,240
(3,240)
- - (3,240)
(3,240)
- - 3,240 3,240
Page 16
$ -
$
-
$
-
Page 16
-
$ -
$
-
CHUBBUCK DEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES AND EXPENDITURES -BUDGET AND ACTUAL
CHUBBUCK URBAN RENEWAL DISTRICT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2017
REVENUES
Property taxes
Interest revenue
Service and contract revenue
EXPENDITURES
Administration and other expenses
Projects and grants
NWSI grant
Allstate
Industry /Southside Way Streets
Stuart Additions Streets
Country Acres Streets
Parks capital improvements
Fiber Optic
Siphon road reconstruction
Whitaker Road reconstruction
Hawthorne -James to Siphon
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer in (out)
NET CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
ENDING FUND BALANCE
Original
Amended
3,962
1,038
Budget
Budget
Actual
-
Amounts
Amounts
Amounts
Variance
$ 2,450,000
$ 2,450,000
$ 2,546,104
$ 96,104
40,000
40,000
14,273
(25,727)
1,800,000
1,800,000
77,253
77,253
2,490,000
2,490,000
2,637,630
147,630
5,000
5,000
3,962
1,038
228,000
228,000
228,000
-
362,500
362,500
362,500
-
400,000
400,000
-
400,000
650,000
650,000
1,089,859
(439,859)
1,800,000
1,800,000
517,959
1,282,041
250,000
250,000
350,684
(100,684)
395,000
395,000
204,164
190,836
-
-
8,515
(8,515)
-
-
6,093
(6,093)
12,337
(12,337)
4,090,500
4,090,500
2,784,073
1,306,427
{1,600,500)
(1,600,500)
(146,443)
1,454,057
- - (3,240) (3,240)
$ (1,600,500) $ (1,600,500)
Page 17
(149,683) $ 1,450,817
2,651,624
$ 2,501,941
CHUBBUCK DEVELOPMENT AUTHORITY
NOTES TO REQUIRED SUPPLEMENTAL INFORMATION
NOTE1-EXPENSES IN EXCESS OF BUDGET
GENERAL FUND
The Authority did not budget sufficient expenditure for administration and other expenses.
CHUBBUCK URBAN RENEWAL DISTRICT FUND
The Authority did not budget sufficient expenditure for increased expenditure in the following
projects.
Stuart Additions Streets
Parks Capital Planning
Siphon Road Reconstruction
Whitaker Road Reconstruction
Hawthorne Reconstruction
REVENUE IN EXCESS OF BUDGET
GENERAL FUND
Transfer in funded the expenditure in administration and other expenses.
CHUBBUCK URBAN RENEWAL DISTRICT FUND
Revenues in excess of budget, unused budget funding in Industry/Southside Way Streets,
and decreased expenditures in Country Acres Streets and Fiber Optics were used to pay
under -budgeted expenditures.
Deaton & Company, Chartered
Certified Public Accountants
215 North 9th, Suite A
Pocatello, Idaho 83201-5278
(208)232
Members of Idaho Society of Certified Public Accountants
Members ofAmerican Institute of Certified Public Accountant
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, 2017, 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 December 20, 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,ldaho
December 20, 2017