Loading...
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