HomeMy WebLinkAbout2012 CIAWWCACHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2012
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2011
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
Statements of Activities
Statement of Cash Flows
Notes to Financial Statements
Report on Internal Control Over Financial Reporting
Schedule of Findings and Responses
Page
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9-10
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DEATON & COMPANY, CHARTERED
Deaton & Company, Chartered
Certified Public Accountants _
215 North 9th, Suite A -
Pocatello, Idaho 83201-5278
(208) 232-5825
Ni mbers of Idaho Society orcertified Pubtie-Accountants
Mcrttbers of American Institute of Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Chubbuck Impact Area Wastewater Collection Authority
Chubbuck, Idaho
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, component unit of City of
Chubbuck as of and for the years ended September 30, 2012, and 2011, which collectively comprise the
Authority's basic financial statements 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. The prior year
summarized comparative information has been derived from the Authority's 2011 financial statements and, in our
report dated March 22, 2012, we expressed unqualified opinions on the respective financial statements of the
business -type activities and the aggregate remaining fund information.
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 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, 2012 and 2011, and the respective changes in
financial position and, where applicable, cash flows thereof 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 March 25, 2013, 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 grant agreements and other matters. The purpose of that
report is to describe the scope of our tsting of internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit,
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.
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Pocatello, Idaho
March 25, 2013
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
STATEMENT OF NET ASSETS
PROPRIETARY FUND
AS OF SEPTEMBER 30, 2012
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2011
ASSETS
Cash and cash equivalents
Capital assets, net of accumulated
Depreciation, where applicable:
Work in process
LIABILITIES
Long-term liabilities (Note - 4)
Due after one year
FUND BALANCE/NET ASSETS
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
4
2012 2011
$ - $ 16,266
18,287,554 17,629,414
18,287,554 17,645,680
18,282,069 17,642,935
18,282,069 17,642,935
5,485 2,745
$ 5,485 $ 2,745
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, 2012
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2011
EXPENSES
GENERAL REVENUES
Charges for services
CHANGE IN NET ASSETS
NET ASSETS — BEGINNING OF THE YEAR
NET ASSETS — ENDING OF THE YEAR
5
2012
$ 2,750 $
2011
5,490
2,745
5,490
2,745
2,740
2,745
2,745 -
$ 5,485 $ 2,745
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, 2012
WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 201'1
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED
BY OPERATING ACTIVITIES
Net income $ 2,740 $ 2,745
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 2,740 $ 2,745
0
The accompanying notes are an integral part of these financial statements
DEATON & COMPANY, CHARTERED
20'12
2011
CASH FLOW FROM OPERATING ACTIVITIES
Cash received from customers
$ 5,490
$ 2,745
Cash paid to suppliers
(2,750)
-
Net cash provided (used) by operating activities
2,740
2,745
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from capital debt
639,134
5,527,997
Purchase of capital assets
(658,140)
(5,514,476
Net cash used in capital and related
financing activities
(19,006)
13,521
NET INCREASE (DECREASE) IN CASH
(16,266)
16,266
BEGINNING CASH AND CASH EQUIVALENTS
16,266
-
ENDING CASH AND CASH EQUIVALENTS
$ -
$ 16,266
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED
BY OPERATING ACTIVITIES
Net income $ 2,740 $ 2,745
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 2,740 $ 2,745
0
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, 2012
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 - Summa 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 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 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.
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 2)
SEPTEMBER 30, 2012
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 $17,629,414 $ 658,140 $ - $ 18,287,554
Accumulated Depreciation - - - -
Book Value $17,629,414 $ 658,140 $ - $ 18,287,554
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 $17,642,935 $ 639,134 $ - $ 18,282,069
The authority has no current portion of long term debt as of September 30, 2012.
NOTE 5 - Subsequent Events
Subsequent events were evaluated up to March 25, 2013, the date the financial statements were
available to be issued.
E.
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 Ceclified Public Accountants
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 accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the Chubbuck Impact Area
Wastewater Collection Authority, as of and for the years ended September 30, 2012 and 2011, which
collectively comprise the Chubbuck Impact Area Wastewater Collection Authority's basic financial
statements and have issued our report thereon dated March 25, 2013. 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 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.
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 Chubbuck Impact Area Wastewater 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.
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.
Pocatello, Idaho
March 25, 2013
DEATON & COMPANY, CHARTERED
CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED SEPTEMBER 30, 2012
Findings Of Significant Deficiency And Responses
NONE
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DEATON & COMPANY, CHARTERED