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Home My WebLink About2011 CIAWWCAUHUBBUUK IMPACT AREA WASTEWATER COLLECTION AUTHORITY FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2011 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2010 DE,A:R ON s UONIRILNY. 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 GDntroI Over Financial Reporting Schedule of Findings and Responses Page 1 2 3 4 6 6 7-8 9-10 11 Dealon COoljlanY, Cbartered Ceitiflmd Public ALTounlarlr,HUNM - _ 215 NOL LiI9lh.Suite A -- - L't}n[elln, In 83201 577 (203) 232 5,15 JL Meuben nr Idahn-gmm 6rcrmificd Nblu A—,,UUUI�I'- ... kicwLris �tl':\mrmcun In�+ln�r nr Crrlifiab F'ub]u ,.::I.0 r INDEPENDENT AUDITOR'S REPORT To the Board of Directors Chubbuck tmpact Area Wastewater Collection Authority Chubbuck, Idaho We have auctttea the accompanying tinanclal statements of the Dusiness-types activities, and the aggregate remaining fund information of C hubbuck impact Area Wastewater CoRactiun Authonity, component unit of City of hubbuck as of and for the years ended September 30, 2011, and 2010, 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 AuthoWs. Board of Directors_ Our responsibility is to express an opinion on these flnaneial statements based on our audit. The prior year summarized comparative Information has been derived from the Authority's 2010 financial statements and, in our report dated May 31, 2011, 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 V - S. generally accepted audlting standards and the standards appkicable to financial audits contained in ovE�rnmerrt Audft Sfandarda. issued by the Comptroller General of the United States. Those standards require that we plank 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 discbsures in the general purpose financial statefritents. An audit also includes assessing the accounting principles used and significant estmates made by management, as well as evaluating the overall financial statement presentation. We believe that our audlt 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, 2011 and 2010, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended, in conformity with U._ generally accepted acoounting phnclples_ in accordance with Government Auditing Standards, we have also issued our report dated March 22, 2012, on our consideration of the Organization's internal control over financial reporting and our tests its compliance with oartain 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 acoordance with Oovemment Auditing Standards and 0oui CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY STATEMENT OF NET ASSETS PROPRIETARY FUND AS OF SEPTEMBER 30,11 WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30,2010 ASSETS Cash and Gaah equivalents Capital assets, net of accumulated Depreciation, wre applicable- Work bl«Work in process LIABILITIES Long-term lia m (Note .q Due ani on year FUND BALANCE/NET ASSETS NET ASSETS Invested b/|I assets, net ofrelated d t Unrestdoted 4 11 2010 $ 1$2 $ . $17,82§,414 17,645.680 $ 12,114,936 12,114,938 17,642,935 12,114,938 17,642,935 12,114,938 2,745 S 2,745 Th ■ accompanyIng noteg &e an integral part of these aem B 1)k.AW1%& C<T1% NV.(RA EaEn CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY STATEMENTS OF ACTIVITIES PROPRIETARY FUND FOR THE YEAR ENDED AS OF SEPTEMBER 30, 2011 WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2010 2011 2010 EXPENSES $ GENERAL REVENUES barges for services 2,745 - 2,745 CHANGE IN NET ASSETS 2,745 _ NET ASSETS — BEGINNING OF THE YEAR _ NET ASSETS — ENDING OF THE YEAR 2,745 _ 5 The accompanying nates are ars integral part of these financial statements CHUBSUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY STATEMENT OF CASH FLOWS PROPRIETARY FUND FOR THE YEAR ENDED AS OF SEPTEMBER 30, 2011 WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2010 R The sccompanying dotes are an integral part of these Financial statements DEATON & COMPANY, CHARTERM 2011 2010 CASH FLOW FROM OPERATING ACTIVITIES Cash received from crustomers $ 2,745 Net cash provided (used) by operating activities 2.745 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital debt 5,527,997 12,1 14,9313 Purchase of capital assets (5,514,47 (1,11939) Net cash used In capital and related financing activities 13,521 NET INCREASE (DECREASE) IN CASH 16,266 - BEGINNING CASH AND CASH EQUIVALENTS - ENDING, CASH AND CASH EQUIVALENTS $ 16,266 � RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Net income $ 2,745 $ - MET CASH PROVIDED BY OPERATING ACTIVITIES S 2,745 R The sccompanying dotes are an integral part of these Financial statements DEATON & COMPANY, CHARTERM CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY NOTES TO FINANCIAL STATEMENTS (PACE 1 OF 2) SEPTEMBER 30, 20'11 The Chubbuck Impact Area Wastewater Collection Authority (the Authority) is a legal joint venture between the City of C hubbuck, the City of Pocatello, and Bannock County. The Authority was created in August 2007, as a separate legal entity pursuant to Section 57-2328, of the Idaho Code, TI1e 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 Sign ificant Acco u nting 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 appiying 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 far 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 crlteria, the Authority hes no potential component units. Under generally accepted accounting principles. as adapted by the Governmental Accounting Standards Board, the Authority is included in the Annual Financial Statements of the City of Chubbuck as a discretely pre8anted component unit, B- Frond Accounting The Authority uses funds to report its financial position and the results of Its orations. Fund accounting is designed to dernonstrate legal compllance 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 a=unts. The Operating Fund is used to account for all business type transactions in a manner similar to corn mercial enterprises. C- Basis of Accounting The accrual basis cf accounting is used. under the somal basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they beoorne both measurable and available)- 6Measurable" means the amount of the transaction can be determined and °available" means collectible within the current period or soon onough thereafter to be used to pay liablII les 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. O. Reclassificatibn In the prior year, the Authority presented the fund as a goo5mmental 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 properly taxes, the Authority has reclassified the fund aS an enterprise fund. 7 irEXII)N x COM V-1kNIL, CRAKII-AtLD CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY NOTES TO NNANCIAL STATEMENTS (PAGE 2 OF 2) SEPTEMBER 30, 2011 NOTE 2 - Dewsits Deposits at yearend consist of the folbwing.. Deposits Bank Book Cash in bank 18,266 $ 16,266 Depoerts - 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 entyrely covered by federal depository insurance. NOTE 3 - Fixed Assets All fixed assets are valued at hist0cat cost or estirnated historical cost I actual historic cost is rrct available, Donated fixed assets are valued at their estirnated fair value on the date donated. Beginning Ending Balance Additions Deletions Ealance Work in Process $12,114,938 $ 5,514,476 $ - 17,629,414 Accumulated Depreciation - - _ - Book Value 112,114,938 5,514,476 $ 17,629,414 NOTE 4. Long -Term Debt The Authority has received loans from the City of Chu#buck. The loans have an undetermined schedule of payment with zero percent (0%) interest. Long-term Debt transactions Beginning lending Balance Additions Deletions Balance City of Chubbuck Advances $12,114,938 S 5,527,997 S - $ 17,842,935 NOTE 5 - Subs uent Ev n Subsequent events were evaluated up to fMiaroh 22, 2012, the date the financial statements were avallable to be issued. 8 DEA MN & COMPANY. CHARTERED I acid&Company, Chartered Crriificd Public ACM11nranj4 15 Surill 9Lh, Suitc A_— i',xarelln, TTS 83201 5278 ... t208] 232-5525 To PA Members of ldaM Srriri, nr{rriticd JUS w ALI.Unw„'! \iemlher.. afAx can 1nwln�rr-,r{rrifill 11.w A-1.r14�.. REPDRT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON All AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMEAFTJ UVITINGSThiIVDA RDS To the Board of Directors Dhubbuck I mpact Area Wastewater Collection Authority Chubbuck, Idaho We have audited the accompanying financial alat2ments of the governmental actMties, the business -type activIbes, 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, 2011 and 2010, which colle0vely comprise the Chubbuck Impact Area Wastewater Collection Authority's basic financial statements and have issued our report thereon dated March 22, 2012. We conducted our audit in accordanoe with auditing standards generally accepted in the United States of AnHEeAca and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Oontroi Over Finn I e ortin 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 audltlrtg procedures for the purpose of expressing our opinions on the flnanclal 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. Accof ingly, 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 tlrnely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control such that there is a reasonable possibility thket 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 lirnited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financiiai 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 abave- Compliance and Other Matters As part of obtaining reasonable assurance about whether Chubbuck Impact Aree Wastewater Collectlon Authority's financial statements are free of rnateHal misstatement, we performed tests of its compliance wlth certain provisions of taws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and rnate0al effect on the determinatlon of financial statement amounts. However, providing an opinion on oompliance with those provisions was not an objective of our audit, and accofdingly, 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 parpes, Pocatello_ Idaho March 2, 2012 PEATON .0 CONIP:%NY, CHARTERED CHUEBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY SCHEDULE OF FINDINGS AND RESPONSES FOR THE YEAR ENDED SEPTEMBER .30, 2011 Findings Of Significant Deficiency And Responses NONE 11 DEAJON & COMP,tNY,CHARTERED