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
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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