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HomeMy WebLinkAbout2010 CIAWWCACHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2010 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2009 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 Notes to Financial Statements Report on Internal Control Over Financial Reporting Schedule of Findings and Responses Page _ 1 2 3 4 5-6 7-8 9 DEATON & COMPANY, CHARTERED Deaton & Company, Chartered Certified Public Accountants 215 North 9th, Suite A Pocatello, ID 83201-5278 (208) 232-5825 Members of Idaho Society of Certified Public Accountants Members of American fnsetute of Certified Public Accountants F11-111 w ■A ■r i r ■i iir ALTAi �i■ wri 0L 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 Chubbuck Impact Area Wastewater Collection Authority as of and for the year ended September 30, 2010, and 2009 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. 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 financial position of Chubbuck Impact Area Wastewater Collection Authority as of September 30, 2010 and 2009, and the results of its operations 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 May 31, 2011, on our consideration of the Organization's intemai control over financial reporting and our tests its compliance with certain provisions of laws, regulations, contracts, and grants. Our audit was performed for the purpose of forming an opinion on the financial statements of Chubbuck Impact Area Wastewater Collection Authority, taken as a whole. The accompanying Budget to Actual Comparison Statement is presented for purposes of additional analysis as required by generally accepted auditing standards and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole. 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. Pocatello, Idaho May 31, 2011 CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY STATEMENT OF NET ASSETS PROPRIETARY FUND AS OF SEPTEMBER 30, 2010 WITH COMPARATIVE TOTAL AS OF SEPTEMBER 30, 2009 ASSETS Capital assets, net of accumulated Depreciation, where applicable: Work in process LIABILITIES Long-term liabilities (Note - 3) Due after one year FUND BALANCEINET ASSETS 2010 2009 $ 12,114,938 $ 1,265,697 12,114,938 1,265,697 12,114,938 1,265,697 12,114,938 1,265,697 NET ASSETS Invested in capital assets, net of related debt 4 The accompanying notes are an integral part of these statements DEATON & COMPANY, CHARTERED CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 2) SEPTEMBER 30, 2010 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 9 - Summar of & nc Jicant Accounting Policies A. Reporting Entity For financial reporting purposes, management has considered potentia! 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. 5 DEATON & COMPANY, CHARTERED CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY NOTES TO FINANCIAL. STATEMENTS (PAGE 2 OF 2) SEPTEMBER 30, 2090 NOTE 2 - 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 $ 1,265,697 $10.849,241 $ - $12,114,938 Accumulated Depreciation - _ Book Value $ 1,265,697 $10,849,241 $ - $12,114,938 NOTE 3 - 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 $ 1,265,697 $10,849,241 $ - $12,114,938 NOTE 4 - Financial Statements Statement of revenues, expenses and changes in net assets During the year, the Authority did not receive any revenue or incur any expenses. All changes in the statement of net assets were due to increased work in process and increased payables from loans provided by the City of Chubbuck_ Therefore, no statement of revenues, expense and changes in net assets was presented. Statement of Cash flows During the year, the Authority had no cash transactions. All transactions during the year were like kind exchanges between the City of Chubbuck and the Authority. Therefore, no statement of cash flows was presented. NOTE 5 - Subsequent Events Subsequent events were evaluated up to May 31, 2011, the date the financial statements were available to be issued. C: DEATON & COMPANY, CHARTF,RED Deaton & Company, Chartered Certified Public Accountants 215 North filth, Suite A Pocatello, ID 83201-5278 (208)232-5825 Members of Idaliu Society of Certified Public Accountants Members nfAmerican Institute ul'Cettifted Public Accountancy 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, 2010 and 2009, which collectively comprise the Chubbuck Impact Area Wastewater Collection Authority's basic financial statements and have issued our report thereon dated May 31, 2011. 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 May 31, 2011 DEATON & COMPANY, CHARTERED CHUBBUCK IMPACT AREA WASTEWATER COLLECTION AUTHORITY SCHEDULE OF FINDINGS AND RESPONSES FOR THE YEAR ENDED SEPTEMBER 30, 2010 Findings Of Significant Deficiency And Responses NONE DEATON & COMPANY, CHARTERED