HomeMy WebLinkAbout2017 CIAWWCAChubbuck Impact Area Wastewater Collection Authority
CHUBBUCK *atello
1 D R H a A MUNICIPAL CORPORATION OF IDAHO
AS OF SEPTEMBER 30, 2017
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2016
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
TABLE OF CONTENTS
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2016
TITLE PAGE
Page
TABLE OF CONTENTS 2
FINANCIAL STATEMENTS
Independent Auditor's Report 3-5
Statements of Net Position 6
Statements of Activities �
Statement of Cash Flows 8
Notes to Financial Statements 9-10
Report on Internal Control Over Financial Reporting 11-12
Schedule of Findings and Responses 13
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 Ace onntanrs
Members ofAmerican Institute ofCenified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Chubbuck Impact Area Wastewater Collection Authority
Chubbuck, Idaho
Report on the Financial Statements
We have audited the accompanying financial statements of the business -type activities, and the
aggregate remaining fund information of Chubbuck Impact Area Wastewater Collection Authority, a
component unit of City of Chubbuck as of and for the year ended September 30, 2017, 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 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.
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 Wastewater Collection Authority, as of September 30,
2017, 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
Management has omitted the management's discussion and 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 basis financial statements of the year ended September 30,
2016, which are not presented with the accompanying financial statement and we expressed
unmodified opinions on the respective financial statements of the governmental active, and the
aggregate remaining fund information. That audit was conducted for the purpose of forming opinions
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 form 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 December
20, 2017, 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 the Authority's
internal control over financial reporting and compliance.
Pocatello, Idaho
December 20, 2017
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
STATEMENT OF NET POSITION
PROPRIETARY FUND
AS OF SEPTEMBER 30, 2017
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2016
ASSETS
Capital assets, net of accumulated
Depreciation, where applicable:
Land
Infrastructure
LIABILITIES
Long-term liabilities (Note - 4)
Due after one year
FUND BALANCE/NET ASSETS
NET POSITION
Net investment capital assets
Unrestricted
2017 2016
$ 3861226 $ 386,226
16, 970, 980 17, 577, 086
17, 357, 206 17, 963, 312
17,418,268 $ 17,654,318
17
418,268 17, 654, 318
(61,062) 308,994
308,994
[s]
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, 2017
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2016
OPERATING REVENUES
Charges for services
OPERATING EXPENSES
Professional fees
Depreciation Expense
OPERATING INCOME (LOSS)
NONOPERATING REVENUES
Grant revenue
CHANGE IN NET POSITION
NET ASSETS —BEGINNING OF THE YEAR
NET ASSETS —ENDING OF THE YEAR
i
2017
$ 10,980
10.980
2016
$ 10,980
10,980
2,930
2,930
606,106
606,107
609,036
6092037
(5985056)
(598,057)
2282000
228,000
2281000
2281000
(370,056) (370,057)
308,994 679,051
$ (61,062) $ 308,994
The accompanying notes are an integral part of these financial statements
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
FOR THE YEAR ENDED AS OF SEPTEMBER 30, 2017
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2016
2017 2016
CASH FLOW FROM OPERATING ACTIVITIES
Cash received from customers $ 10,980 $ 10,980
Cash paid to suppliers (21930) (2,930)
Net cash provided (used) by operating activities 81050 81050
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from debt 21930 21930
Proceeds from capital grants 228,000 228,000
Principal paid on obligations (2382980) (238,980)
Net cash provided (used) by capital and related
financing activities (81050) (81050)
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 $ (598,056) $ (598,057)
Depreciation 606,106 606,107
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 8,050 $ 8,050
0
The accompanying notes are an integral part of these financial statements
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 2)
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
nclude 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
Various account balances were reclassified during the year, as previously reported. These reclassifications
were required for the comparability to the curent year's financial statements and must be considered when
comparing the financial statements of this report with those of prior reports.
E. Restricted Resources
It is the Authority's policy to first apply restricted resources when an expense is incurred for purposes for which
both restricted and unrestricted net positon is available.
NOTE 2
NOTE 3 -
NOTE 4 -
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 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.
$17,963,312
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.
Long -Term Debt
Additions Deletions
(606,106)
$ (606,106) $ -
Ending Balance
$ 386,226
18,183,193
(12212,213)
$ 17,357,206
The Authority
Beginning
received
Balance
Land
$ 3869226
Infrastructure
18,1839193
Accumulated Depreciation
(6063107)
Book Value
$17,963,312
Long -Term Debt
Additions Deletions
(606,106)
$ (606,106) $ -
Ending Balance
$ 386,226
18,183,193
(12212,213)
$ 17,357,206
The Authority
has
received
loans from the
City of Chubbuck. The loans have an undetermined schedule of
payment with
zero
percent (09/o)
interest.
Long-term Debt transactions
Beginning
Balance Additions Deletions Ending Balance
City of Chubbuck Advances $17,654,318 $ 21930 $ (238,980) $ 17,418,268
NOTE 5 - Subsequent Events
Subsequent events were evaluated up to December 20, 2017, the date the financial statements were available
to be issued.
Deaton & Company, Chartered
Certified Public Accountants
215 North 9th, Suite A
Pocatello, Idaho 83201-5278
(208) 232-5825
Members of Idaho Society of rectified PublicAccoumants
Members ofAmerican Indhde of Certified Public Accountants
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
To the Board of Directors
Chubbuck Impact Area Wastewater Collection Authority
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, 2016, 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 December 20, 2017,
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 (internal control) to determine the audit procedures
that are appropriate in the circumstances 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
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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are
free from 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.
Chubbuck,ldaho
December 20, 2017
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Findings Of Significant Deficiency And Responses
NONE
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