Loading...
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 Page 1 2 3 4 5 6-7 8 9 10 11 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 ■ 1 nRf. r O ■ 1, ■ I s`a'a `■ IIIIII, ■ A M my �• 01 u ■1\ 9 ■ 9� �• 'am n . u g ■ r■ o m 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