HomeMy WebLinkAbout2013 CIAWWCACHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2013
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2012
Certified Public Accountants
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
TABLE OF CONTENTS
TITLE PAGE
TABLE OF CONTENTS
FINANCIAL STATEMENTS
Independent Auditor's Report
Statements of Net Position
Statements of Activities
Statement of Cash Flows
Notes to Financial Statements
Report on Internal Control Over Financial Reporting
Schedule of Findings and Responses
Page
3-4
5
6
7
8-9
10-11
12
DEATON & COMPANY, CHARTERED
Deaton & Company, Chartered
Certified Public Accountants
215 North 9th, Suite A
Pocatello, Idaho 83201-5278
(208)232-5825
Memhers of Idaho Society of Certified Public Accountants
Members of American Institute of Certified Pub] ie Accounmus
INDEPENDENT AUDITOR'S RE=PORT
To the Committee Members
Chubbuck Impact Area Waste Water Collection Authority
Report on the Financial Statements
a t 1W W r ■
ii
is OLwim
�+r A's a a �k 11E
"L R Am w a zi ii
, LA
We have audited the accompanying financial statements of the business -type activities, and the aggregate
remaining fund information of the Chubbuck Impact Area Waste Water Collection Authority, component unit of
City of Chubbuck, Idaho as of and for the year ended September 30, 2013, 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 Unded 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 business -type activities, and the aggregate remaining fund information, of the Chubbuck
Impact Area Waste Water Collection Authority, as of September 30, 2013, and the respective changes in
financial position, and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
The Authority has not presented the required Management's discussion and analysis that accounting principles
generally accepted in the United States has determined is necessary to supplement, although not required to be
part of, the basic financial statements.
Other Information
The prior year summarized comparative information has been derived from the Authority's 2012 audited financial
statements and, in our report dated March 25, 2013, we expressed unqualified opinions on the respective
financial statements of the governmental activities, the business -type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information. This 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, 2014, on
our consideration of the Chubbuck Impact Area Waste Water Collection 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 Impact Area Waste Water Collection
Authority's internal control over financial reporting and compliance.
M
Chubbuck, Idaho
March 28, 2014
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
STATEMENT OF NET POSITION
PROPRIETARY FUND
AS OF SEPTEMBER 30, 2013
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2012
ASSETS
Capital assets, net of accumulated
Depreciation, where applicable:
Work in process
LIABILITIES
Advances payable
Long-term liabilities (Note - 4)
Due within one year
Due after one year
FUND BALANCEMET ASSETS
NET POSITION
Unrestricted
2013
2012
$ 18,408,131 $ 18,299,134
18,408,131 18,299,134
$ 11,580
18,179,220 18,282,069
18,179,220 18,293,649
228,911 5,485
$ 228,911 $ 5,485
The accompanying notes are an integral part of these statements
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
STATEMENTS OF ACTIVITIES
PROPRIETARY FUND
FOR THE YEAR ENDED AS OF SEPTEMBER 30, 2013
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2012
EXPENSES
GENERAL REVENUES
Charges for services
CDA grant revenue
CHANGE IN NET ASSETS
NET POSITION — BEGINNING OF THE YEAR
NET POSITION — ENDING OF THE YEAR
0
2013
$ 4,574
228,000
228,000
2012
$ 2,750
5,490
5,490
223,426 2,740
5,485 2,745
$ 228,911 $ 5,485
The accompanying notes are an integral part of these financial statements
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
FOR THE YEAR ENDED AS OF SEPTEMBER 30, 2013
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2012
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED
BY OPERATING ACTIVITIES
Net income $ 223,426 $ 2,740
Increasel(decrease) in liabilities:
Accounts payable (11,579) -
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 211,847 $ 2,740
7
The accompanying notes are an integral part of these financial statements
DEATON & COMPANY, CHARTERED
20'13
2012
CASH FLOW FROM OPERATING ACTIVITIES
Cash received from customers
$ 228,000
$ 5,490
Cash paid to employees
Cash paid to suppliers
_ (16,153)
(2,750)
Net cash provided (used) by operating activities
211,847
2,740
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from capital debt
(102,850)
650,714
Purchase of capital assets
(108,997)
(669,720)
Net cash used in capital and related
financing activities
(211,847)
(19,006)
NET INCREASE (DECREASE) IN CASH
-
(16,266)
BEGINNING CASH AND CASH EQUIVALENTS
-
16,266
ENDING CASH AND CASH EQUIVALENTS
$ -
$ -
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED
BY OPERATING ACTIVITIES
Net income $ 223,426 $ 2,740
Increasel(decrease) in liabilities:
Accounts payable (11,579) -
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 211,847 $ 2,740
7
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, 2013
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 Authority 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 blended 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 accrual basis of accounting is used. 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 Authority 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.
D. Reclassification
In the prior year, the Authority presented the fund as a governmental fund in order to better provide
transparency of the asset and liability received by the Authority. However, due to the nature of the
Authority to receive revenues on a fee basis and not having the ability to levy property taxes, the
Authority has reclassified the fund as an enterprise fund.
8
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 2)
SEPTEMBER 30, 2013
NOTE 2 - Deposits
Deposits at yearend consist of the following:
Deposits
Cash in bank
Bank Book
Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the
government's deposits may not be returned to it. The Authority's deposits at yearend, were entirely
covered by federal depository insurance.
NOTE 3 - 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 $18,299,134 $ 108,997 $ - $ 18,408,131
Accumulated Depreciation - - - -
Book Value $18,299,134 $ 108,997 $ - $ 18,408,131
NOTE 4 - Long -Term Debt
The Authority has received loans from the City of Chubbuck. The loans 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 118,282 069 $ 125,150 $ 228,000 $ 18,179,219
NOTE 5 - Subsequent Events
Subsequent events were evaluated up to March 28, 2014, the date the financial statements were
available to be issued.
DEATON & COMPANY, CHARTERED
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 of Certified Public Accountants
1 W4 60
■ 1
M":: Tno ■ .1 ft
• A Ira W o ■ AM
Aar M Usk
Illlfi ■ u a wrr �L
��0•■■
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 Committee Members
Chubbuck Impact Area Waste Water Collection Authority
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, the
business -type activities, each major fund, and the aggregate remaining fund information of Chubbuck Impact
Area Waste Water Collection Authority, as of and for the year ended September 30, 2013, and the related
notes to the financial statements, which collectively comprise Chubbuck Impact Area Waste Water Collection
Authority's basic financial statements, and have issued our report thereon dated March 28, 2011.
Internal Control Over Financial Reoortina
In planning and performing our audit, we considered Chubbuck Impact Area Waste Water 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 Chubbuck Impact Area Waste Water Collection Authority's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Chubbuck Impact
Area Waste Water Collection 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. 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. We did not identify any deficiencies in internal control over financial reporting that we consider
to be a significant deficiency in internal control over financial reporting.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Chubbuck Impact Area Waste Water Collection
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.
Pocatello, Idaho
March 28, 2014
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Findings Of Significant Deficiency And Responses
NONE
12
DFATON & COMPANY, CHARTERED