HomeMy WebLinkAbout2009 CIAWWCACHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
FINANCIAL STATEMENTS
SEPTEMBER 30, 2009
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
TABLE OF CONTENTS
TITLE PAGE
TABLE OF CONTENTS
FINANCIAL STATEMENTS
Independent Auditor's Report
Statements of Net Assets and Governmental Fund
Balance Sheet
Statements of Activities and Governmental Fund
Revenues, Expenditures, and Changes in Fund
Balance
Notes to Financial Statements
Required Supplementary Information
Schedule of Budget to Actual Comparison
Notes to Required Supplementary Information
Report on Internal Control Over Financial Reporting
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DEATON & COMPANY, CHARTERED
Deaton & Company, Chartered
Certified Public Accountants
215 North 9th, Suite A
Pocatello, ID 83201-5278
(208) 232-5825
Members of Iduhu Society ofCcruficd Public Accoumm.t<
Members of American Institute of Certified Public Accoun,amc
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Chubbuck Impact Area Wastewater Collection Authority
Chubbuck, Idaho
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We have audited the accompanying financial statements of the Chubbuck Impact Area Wastewater Collection
Authority as of and for the year ended September 30, 2009 as listed in the table of contents. These financial
statements are the responsibility of the Chubbuck Impact Area Wastewater Collection Authority's Board of
Directors. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards 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 of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial
statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Chubbuck Impact Area Wastewater Collection Authority as of September 30, 2009, and the results
of its operations for the years then ended, in conformity with U.S. generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated October 15, 2010,
on our consideration of the Organization's internal control over financial reporting and our tests its compliance
with certain provisions of laws, regulations, contracts, and grants.
Our audit was performed for the purpose of forming an opinion on the financial statements of Chubbuck
Impact Area Wastewater Collection Authority, taken as a whole. The accompanying Budget to Actual
Comparison Statement is presented for purposes of additional analysis as required by generally accepted
auditing standards and is not a required part of the financial statements. Such information has been subjected
to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in
all material respects, in relation to the financial statements taken as a whole.
The Authority has not presented the management's discussion and analysis that accounting principles
generally accepted in the United States have determined is necessary to supplement, although not required to
be part of, the basic financial statements.
Pocatello, Idaho
October 15, 2010
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
STATEMENTS OF NET ASSETS AND
GOVERNMENTAL FUND BALANCE SHEET
SEPTEMBER 30. 2009
ASSETS
Capital assets, net of accumulated
Depreciation, where applicable:
Work in process
LIABILITIES
Long-term liabilities (Note - 3)
Due after one year
FUND BALANCE/NET ASSETS
FUND BALANCE:
Unreserved
NET ASSETS
Invested in capital assets, net of related debt
:1
Adjustments Statement of
Total (Note - 4) Net Assets
$ $ 1,265,697 $ 1,265,697
$ 1,265,697 1,265,697
1,265,697 1,265,697
1,265,697 1,265,697
The accompanying notes are an integral part of these statements
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
STATEMENTS OF ACTIVITIES AND
GOVERNMENTAL FUND REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2009
EXPENDITURES/EXPENSES
Capital outlays
GENERAL REVENUES
Assessments
OTHER FINANCIAL SOURCES (USES)
Proceeds from City of Chubbuck advances
EXCESS OF REVENUES OVER EXPENDITURES
CHANGE IN NET ASSETS
NET ASSETS — BEGINNING OF THE YEAR
NET ASSETS — ENDING OF THE YEAR
Adjustments Statement of
Total (Note - 5) Activities
$ 1,265,697 $ (1,265,697) $
1,265,697 (1,265,697)
1,265,697 (1,265,697)
The accompanying notes are an integral part of these financial statements
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 2)
SEPTEMBER 30, 2009
The Chubbuck Impact Area Wastewater Collection Authority (the Authority) is a legal joint venture between the City of
Chubbuck, the City of Pocatello, and Bannock County. The Authority was created in August 2007, as a separate
legal entity pursuant to Section 67-2328, of the Idaho Code. The purpose of the Authority is to acquire, construct,
own, operate, and maintain the Facility, and to provide wastewater transmission and disposal services.
NOTE 1 - Summary of Significant Accounting Policies
A. Reporting Entity
For financial reporting purposes, management has considered potential component units. The decision
to include a potential component unit in the reporting entity is made by applying the criteria set forth in
generally accepted accounting principles. The basic criterion for including a potential component unit
within the reporting entity is the governing body's responsibility for financial accountability. Financial
accountability is defined as the level of accountability that exists if a primary government appoints a
voting majority of an organization's governing board and is either able to impose its will on that
organization or there is potential for the organization to provide specific financial benefits to, or impose
specific financial burdens on, the primary government. A primary government may also be financially
accountable for governmental organizations that are fiscally dependent on it. Based upon the
application of these criteria, the District has no potential component units.
Under generally accepted accounting principles, as adopted by the Governmental Accounting
Standards Board, the Authority is included in the Annual Financial Statements of the City of Chubbuck
as a discretely presented component unit.
B. Fund Accounting
The Authority uses funds to report its financial position and the results of its operations. Fund
accounting is designed to demonstrate legal compliance and to aid financial management by
segregating transactions related to certain government functions or activities. A fund is a separate
accounting entity with a self -balancing set of accounts. The Operating Fund is used to account for all
business type transactions in a manner similar to commercial enterprises.
C. Basis of Accounting
The accounting and financial reporting treatment applied to business type transactions is determined by
their measurement focus. All business type funds are accounted for using a current financial resources
measurements focus. With this measurements focus, only current assets and current liabilities
generally are included on the balance sheet. Operating statements of these funds present increases
(i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses)
in net current assets.
All capital assets, including infrastructure assets, are reported in the statement of net assets, and the
related depreciation expense in the statement of activities. Net assets are reported in the following
categories, invested in capital assets net of related debt and unrestricted.
The accrual basis of accounting is used by all funds. Under the accrual basis of accounting, revenues
are recognized when susceptible to accrual (i.e., when they become both measurable and available).
"Measurable" means the amount of the transaction can be determined and "available" means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
The district considers assessments as available when they are assessed. A one-year availability period
is used for revenue recognition. Expenditures are recorded when the related fund liability is incurred.
Those revenues susceptible to accrual are assessments, interest revenue and charges for services
L
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 2)
SEPTEMBER 30, 2009
NOTE 2 - Fixed Assets
All fixed assets are valued at historical cost or estimated historical cost if actual historic cost is not
available. Donated fixed assets are valued at their estimated fair value on the date donated.
Beginning Ending
Balance Additions Deletions Balance
Work in Process $ $ 1,265,697 $ 1,265,697
Accumulated Depreciation _
Book Value $ $ 1,265,697 $ $ 1,265,697
NOTE 3 - Long-term Debt
The Authority has received advances from the City of Chubbuck which are payable to the City of
Chubbuck. The advances have an undetermined schedule of payment with zero percent (0%) interest.
Long-term Debt transactions
Beginning Ending
Balance Additions Deletions Balance
City of Chubbuck Advances $ $ 1,265,697 $ $ 11265,697
NOTE 4 - Adiustments to Statement of Net Assets
Capital assets used in governmental activities are not financial resources and
therefore are not reported in the funds, net of accumulated depreciation of $0. $ 1,265,697
Long-term liabilities are not due and payable in the current period and therefore are
not reported in the funds:
City of Chubbuck Advances $ 1,265,697
NOTE 5 - Adiustments to Statement of Activities
Proceeds from long-term debt are report as other financials sources in the
governmental funds but are reported as liabilities in the government wide net assets. $ (1,265,697)
NOTE 6 - Subsequent Events
Subsequent events were evaluated up to October 15, 2010, the date the financial statements were
available to be issued.
7
DEATON & COMPANY, CHARTERED
REQUIRED SUPPLEMENTARY INFORMATION
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
SCHEDULE OF ACTIVITIES BUDGET AND ACTUAL
YEAR ENDED SEPTEMBER 30, 2009
Actual
Budgeted Amounts
Amounts (Budgetary
Original Final Basis)
RESOURCES (INFLOWS)
Connection fees
CHARGES (OUTFLOWS)
Variance
Capital outlays 1,265,697 (1,265,697)
1,265,697 (1,265,697)
OTHER FINANCIAL SOURCES (USES)
Proceeds from City of Chubbuck 1,265,697 1,265,697
1,265,697 1,265,697
EXCESS INFLOWS (OUTFLOWS) $ $ - $ -
BEGINNING FUND BALANCE
ENDING FUND BALANCE
0
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
NOTES TO REQUIRED SUPPLEMENTAL INFORMATION
NOTE 1 -EXPENSES IN EXCESS OF BUDGET
CAPITAL OUTLAYS
The District did not budget capital outlay expenditures for the year ended.
REVENUE IN EXCESS OF BUDGET
Advances from the City of Chubbuck were used to pay under budgeted expenditures.
IN
DE.ATON & COMPANY, CHARTERED
Deaton & Company, Chartered
Certified Public Accountants
215 North 9th, Suite A
Pocatello, ID 83201-5278
(208)232-5825
Members of Idaho Society of Certified Public Accountants
Members of American Institute of Certified Public Aaountams
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 Directors
Chubbuck Impact Area Wastewater Collection Authority
Chubbuck, Idaho
We have audited the financial statements of the governmental activities, and the aggregate remaining fund information of
Chubbuck Impact Area Wastewater Collection Authority (the Authority), as of and for the years ended September 30, 2009,
which collectively comprise the Authority's basic financial statements and have issued our report thereon dated October 15,
2010. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Chubbuck Impact Area Wastewater Collection Authority's internal control
over financial reporting as a basis for designing our auditing procedures 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 Authority's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control over
financial reporting.
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.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies,
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting
that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the 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.
This report is intended solely for the information and use of management, the audit committee, Board of Directors, and federal
awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these
specified parties.
Blackfoot, Idaho
October 15, 2010