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HomeMy WebLinkAbout2015 CIAWWCA%w ir. %w %w %w law +r. rr. qw W %w 4w low %. *4.. %w yr vw .. vw low %w "r qw vw %w %w .w CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2015 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2014 Certified Public Accountants *AW +`r v. CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY %W TABLE OF CONTENTS %W %W Page TITLE PAGE 1 TABLE OF CONTENTS 2 FINANCIAL STATEMENTS v. Independent Auditor's Report 3-5 low "W Statements of Net Position 6 W Statements of Revenues, Expenses, and Changes in Fund Net Position 7 W Statement of Cash Flows 8 ft" Notes to Financial Statements 9-10 Aw Report on Internal Control Over Financial Reporting 11-12 'r Schedule of Findings and Responses 13 %W ". Aw W MW MW *W MW ". W 1W 2 -.. IR �r Deaton & Company, Chartered —-- ---- Certified Public Accountants 215 North 9th, Suite A :9111111[l. JAM — iow Pocatello, Idaho 83201-5278 (208) 232-5825 rlYr Members of Idaho Society of Certified Public Accountants _ Members ofAmerican Institute of Certified Public Accountants Up INDEPENDENT AUDITOR'S REPORT %V To the Board of Commissioners Chubbuck Impact Area Wastewater Collection Authority Chubbuck, Idaho Report on the Financial Statements ` We have audited the accompanying financial statements of the enterprise funds and each major fund of the Chubbuck Impact Area Wastewater Collection Authority, a component unit of the City of AW Chubbuck, Idaho, as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. ,,W 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 %W 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. "W VW Auditor's Responsibility r► Our responsibility is to express opinions on these financial statements based on our audit. We %W 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. cm VW o. 140r %V %W 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 "W error. In making those risk assessments, the auditor considers internal control relevant to the entity's "W preparation and fair presentation of the financial statements in order to design audit procedures that VW 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 'r► for our audit opinions. r Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the enterprise fund and each major fund information of the Chubbuck Impact Area Waste Water Collection Authority, as of September 30, 2015, and the respective �. changes in financial position for the years then ended in accordance with accounting principles 4W generally accepted in the United States of America "W Other Matters W Required Supplementary Information 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, 2014, 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 "r aggregate remaining fund information. That audit was conducted for the purpose of forming opinions "W on the financial statements that collectively comprise the Chubbuck Impact Area Wastewater Collection 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 "V has been derived. r. %W r r. low qW qW .r VW VW V. .r VW +or w. %V .. +n qW 1W VW W "r law 1W *4.• Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 24, 2016, 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 Impact Area Wastewater Collection Authority's internal control over financial reporting and compliance. Chubbuck, Idaho March 24, 2016 yr rr. +rr low .r VW VW qV r. r. "r ftr '"r ftr low qW qV "r +r up w low "W .. IRW r. w. +r v. %W CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY STATEMENT OF NET POSITION PROPRIETARY FUND AS OF SEPTEMBER 30, 2015 WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2014 ASSETS Accounts receivable Capital assets, net of accumulated Depreciation, where applicable: Work in process Land Infrastructure LIABILITIES Long-term liabilities (Note - 4) Due after one year FUND BALANCE/NET ASSETS NET POSITION Net investment in capital assets Unrestricted 0 2015 2014 $ - $ 228,000 18,560,669 386,226 18,183,193 18,569,419 18,788,669 $ 17,890,368 $ 18,334,688 17, 890, 368 18, 334, 688 679,051 225,981 - 228,000 $ 679,051 $ 453,981 The accompanying notes are an integral part of these statements CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUND FOR THE YEAR ENDED AS OF SEPTEMBER 30, 2015 WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2014 OPERATING REVENUES Charges for services OPERATING EXPENSES Professional fees OPERATING INCOME (LOSS) NONOPERATING REVENUES Grant revenue CHANGE IN NET POSITION NET POSITION — BEGINNING OF THE YEAR NET POSITION — ENDING OF THE YEAR 7 2015 2014 2,930 2,930 (2,930) (2,930) 228,000 228,000 228,000 228,000 225,070 225,070 453,981 228,911 $ 679,051 $ 453,981 The accompanying notes are an integral part of these financial statements "w VOW "r rr. +r vr. wr %w ++r +r f.. ,%W 'r► +rr► �r qw rr ar frr +r +r rr qw Aw +r rr v. low �r ++r w rw w low r.. low CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY STATEMENT OF CASH FLOWS PROPRIETARY FUND FOR THE YEAR ENDED AS OF SEPTEMBER 30, 2015 WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2014 BEGINNING CASH AND CASH EQUIVALENTS - - ENDING CASH AND CASH EQUIVALENTS $ - $ - RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Net operating loss $ (2,930) $ (2,930) NET CASH PROVIDED BY OPERATING ACTIVITIES $ (2,930) $ (2,930) f' The accompanying notes are an integral part of these financial statements 2015 2014 CASH FLOW FROM OPERATING ACTIVITIES Cash received from customers $ - $ - Cash paid to suppliers (2,930) (2,930) Net cash provided (used) by operating activities (2,930) (2,930) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital debt 8,750 155,468 Proceeds from capital grants 456,000 - Purchase of capital assets (8,750) (152,538) Principal paid on obligations (453,070) - Net cash used in capital and related financing activities 2,930 2,930 NET INCREASE (DECREASE) IN CASH - - BEGINNING CASH AND CASH EQUIVALENTS - - ENDING CASH AND CASH EQUIVALENTS $ - $ - RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Net operating loss $ (2,930) $ (2,930) NET CASH PROVIDED BY OPERATING ACTIVITIES $ (2,930) $ (2,930) f' The accompanying notes are an integral part of these financial statements 0 +rr .. CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 2) SEPTEMBER 30, 2015 ++r yr The Chubbuck Impact Area Wastewater Collection Authority (the Authority) is a legal joint venture between the City MW 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. +r NOTE 1 - Summary of Siqnificant Accountinq Policies "W 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. +r 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 Mr 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 .r 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). rr "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 +�r 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. rrr D. Reclassification Various account balances were reclassified during the year, as previously reported. These reclassifications were required for the comparability to the current year's financial statements and must be considered when comparing the financial statements of this report with those of prior reports. *, E. Restricted Resources 4W It is the Authority's policy to first apply restricted resources when an expense is incurred for purposes %W for which both restricted and unrestricted net position is available. %W "W �Ww 0 CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 2) SEPTEMBER 30, 2015 NOTE 2 - Deposits Deposits at yearend consist of the following: Deposits Bank Book Cash in bank $ - $ - 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. Work in Process Land Infrastructure Accumulated Depreciation Book Value NOTE 4 - Long -Term Debt Beginning Ending Balance Additions Deletions Balance $18,560,669 $ 8,750 $18,569,419 $ - - 386,226 - 386,226 - 18,183,193 - 18,183,193 $18,560,669 $18,578,169 $18,569,419 $ 18,569,419 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 City of Chubbuck Advances $18,334,688 $ 8,750 $ 453,070 $ 17,890,368 NOTE 5 - Subsequent Events Subsequent events were evaluated up to March 24, 2016, the date the financial statements were available to be issued. 10 for rr ir. vw err taw "r .s "w rr. %r +r qw rr rr. .r rr► it 4w w qr r %w r. 1•► .ftr r.► r.. CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY SCHEDULE OF FINDINGS AND RESPONSES FOR THE YEAR ENDED SEPTEMBER 30, 2015 Findings Of Significant Deficiency And Responses NONE 11 it .r► Deaton & Company, Chartered it Certified Public Accountants 3- 215 North 9th, Suite A Pocatello, Idaho 83201-5278 (208) 232-5825 II+ Members of Idaho Society of Certified Public Accountants Members ofAmerican Institute of Certified Public Accountants 'r 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 r 44W To the Board of Commissioners 4W Chubbuck Impact Area Wastewater Collection Authority %W 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 Impact Area Wastewater Collection Authority, as of and for the years ended September 30, 2015, and the related notes to the financial statements, which collectively comprise Chubbuck Impact Area Wastewater Collection Authority's basic financial statements, and have issued our report thereon dated March 24, 2016, 1W 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 +r 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 Impact Area Wastewater Collection Authority's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Chubbuck Impact Area Wastewater 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 MW corrected on a timely basis. "' Our consideration of internal control over financial reporting was for the limited purpose described in +ir• 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 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. WAM Chubbuck, Idaho March 24, 2016