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Maricopa County Phoenix, Arizona

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Maricopa County Phoenix, Arizona Fiscal Year Ended June 30, 2017 COCONINO MOHAVE APACHE NAVAJO YAVAPAI LA PAZ MARICOPA GILA COUNTY GREENLEE PINAL GRAHAM YUMA PIMA COCHISE SANTA CRUZ Board of Supervisors Denny Barney Steve Chucri District 1 District 2 Bill Gates District 3 Clint L. Hickman Steve Gallardo District 4 District 5 Comprehensive Annual Financial Report Maricopa County Phoenix, Arizona For the Fiscal Year July 1, 2016 to June 30, 2017 Prepared By Department of Finance Shelby L. Scharbach, Assistant County Manager – Chief Financial Officer INTRODUCTORY SECTION Table of Contents Listing of Maricopa County Officials Organizational Chart Letter of Transmittal Citizens Audit Advisory Committee Letter Certificate of Achievement for Excellence in Financial Reporting Comprehensive Annual Financial Report Table of Contents For the Fiscal Year Ended June 30, 2017 Introductory Section Page Table of Contents i Listing of Maricopa County Officials v Organizational Chart vi Letter of Transmittal vii Maricopa County Citizens Audit Advisory Committee Letter xi Certificate of Achievement for Excellence in Financial Reporting xii Financial Section Independent Auditors’ Report 1 Management’s Discussion and Analysis 5 Basic Financial Statements Definitions of Government-wide Financial Statements and Listing of Major Funds 19 Government-wide Financial Statements Statement of Net Position 21 Statement of Activities 22 Fund Financial Statements Governmental Funds Financial Statements Balance Sheet 24 Statement of Revenues, Expenditures, and Changes in Fund Balances 26 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities 28 Proprietary Funds Financial Statements Statement of Net Position 30 Statement of Revenues, Expenses, and Changes in Fund Net Position 31 Statement of Cash Flows 32 Fiduciary Funds Financial Statements Statement of Fiduciary Net Position 34 Statement of Changes in Fiduciary Net Position 35 Basic Financial Statements – Notes 39 Required Supplementary Information Budgetary Comparison Schedules – General Fund and Major Special Revenue Fund General Fund 93 Detention Operations Fund 95 Note to Budgetary Comparison Schedules 96 Schedule of the County’s Proportionate Share of Net Pension Liability – Cost Sharing Pension Plans 97 Schedule of Changes in the County’s Net Pension Liability and Related Ratios – Agent Pension Plans 98 Schedule of County Pension Contributions 100 Notes to Pension Plan Schedules 101 i Table of Contents (Continued) For the Fiscal Year Ended June 30, 2017 Page Schedule of Agent OPEB Plans’ Funding Progress 102 Modified Approach for Infrastructure Assets 103 Combining and Individual Fund Statements and Schedules Listing of Nonmajor Governmental Funds 107 Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds 114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 130 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Special Revenue Funds Adult Probation Fees Fund 147 Adult Probation Grants Fund 148 Air Quality Fees Fund 149 Air Quality Grants Fund 150 Animal Control Field Operations Fund 151 Animal Control License/Shelter Fund 152 Ballpark Operations Fund 153 Cactus League Operations Fund 154 CDBG Housing Trust Fund 155 Check Enforcement Program Fund 156 Child Support Enhancement Fund 157 Children’s Issues Education Fund 158 Clerk of Court Fill the Gap Fund 159 Clerk of the Court EDMS Fund 160 Clerk of the Court Grants Fund 161 Conciliation Court Fees Fund 162 County Attorney Fill the Gap Fund 163 County Attorney Grants Fund 164 County Attorney RICO Fund 165 Court Document Retrieval Fund 166 Criminal Justice Enhancement Fund 167 Diversion Fund 168 Domestic Relations Mediation Education Fund 169 Educational Supplemental Program Fund 170 Elections Grants Fund 171 Emancipation Administrative Costs Fund 172 Emergency Management Fund 173 Environmental Services Environmental Health Fund 174 Environmental Services Grants 175 Expedited Child Support Fund 176 Flood Control Fund 177 Flood Control Grants Fund 178 Human Services Grants Fund 179 Inmate Health Services Fund 180 ii Table of Contents (Continued) For the Fiscal Year Ended June 30, 2017 Page Special Revenue Funds (Continued) Inmate Services Fund 181 Judicial Enhancement Fund 182 Justice Court Judicial Enhancement Fund 183 Justice Courts Photo Enforcement Fund 184 Justice Courts Special Revenue Fund 185 Juvenile Probation Diversion Fund 186 Juvenile Probation Grants Fund 187 Juvenile Probation Special Fees Fund 188 Juvenile Restitution Fund 189 Lake Pleasant Recreation Services Fund 190 Law Library Fees Fund 191 Legal Defender Fill the Gap Fund 192 Library District Fund 193 Library District Grants Fund 194 Medical Examiner Grants Fund 195 Non-Departmental Grants Fund 196 Officer Safety Equipment Fund 197 Palo Verde Fund 198 Parks and Recreation Grants Fund 199 Parks Donations Fund 200 Parks Enhancement Fund 201 Parks Souvenir Fund 202 Parks Spur Cross Ranch Conservation Fund 203 Planning and Development Fees Fund 204 Probate Fees Fund 205 Public Defender Fill the Gap Fund 206 Public Defender Grants Fund 207 Public Defender Training Fund 208 Public Health Grants Fund 209 Public Health Fees Fund 210 Recorder’s Surcharge Fund 211 School Communication Expense Fund 212 School Grants Fund 213 School Transportation Fund 214 Sheriff Donations Fund 215 Sheriff Grants Fund 216 Sheriff Jail Enhancement Fund 217 Sheriff RICO Fund 218 Sheriff Towing and Impound Fund 219 Small School Service Fund 220 Spousal Maintenance Enforcement Enhancement Fund 221 Superior Court Building Repair Fund 222 Superior Court Fill the Gap Fund 223 Superior Court Grants Fund 224 Superior Court Special Revenue Fund 225 Taxpayer Information Fund 226 Transportation Grants Fund 227 Transportation Operations Fund 228 Victim Compensation Interest Fund 229 Victim Compensation Restitution Fund 230 Victim Location Fund 231 Waste Management Fund 232 Waste Tire Fund 233 iii Table of Contents (Continued) For the Fiscal Year Ended June 30, 2017 Page Debt Service Funds County Improvement Debt Fund 234 Stadium District Debt Service Fund 235 Capital Projects Funds County Improvement Fund 236 Detention Capital Projects Fund 237 Detention Technology Capital Improvement Fund 238 Flood Control Capital Projects Fund 239 General Fund County Improvements Fund 240 Intergovernmental Capital Projects Fund 241 Library District Capital Improvement Fund 242 Long Term Project Reserve Fund 243 Technology Capital Improvement Fund 244 Transportation Capital Projects Fund 245 Schedule of Capital Projects – Budget and Actual All Capital Improvement Projects 246 Internal Service Funds Listing of Internal Service Funds 255 Combining Statement of Net Position 256 Combining Statement of Revenues, Expenses, and Changes in Net Position 258 Combining Statement of Cash Flows 260 Fiduciary Funds Listing of Fiduciary Funds 265 Combining Statement of Fiduciary Net Position, Investment Trust Funds 266 Combining Statement of Changes in Fiduciary Net Position, Investment Trust Funds 267 Combining Statement of Fiduciary Net Position, Agency Funds 268 Combining Statement of Changes in Assets and Liabilities, Agency Funds 269 Statistical Section Listing of Statistical Information 273 Net Position by Component 274 Changes in Net Position 275 Fund Balances, Governmental Funds 277 Changes in Fund Balances, Governmental Funds 278 Tax Revenues by Source, Governmental Funds 280 Assessed Value and Estimated Market Value of Taxable Property 281 Direct and Overlapping Property Tax Rates 282 Principal Property Taxpayers 283 Property Tax Levies and Collections 284 Ratios of Outstanding Debt by Type 285 Legal Debt Margin Information 286 Pledged Revenue Coverage 287 Demographic and Economic Statistics 288 Principal Employers 289 Budgeted Full-time Equivalent County Employees by Function/Program 290 Operating Indicators by Function/Program 291 Capital Asset Statistics by Function/Program 292 iv Maricopa County Officials BOARD OF SUPERVISORS Denny Barney, District 1 Steve Chucri, District 2 Bill Gates, District 3 Clint L. Hickman, District 4 Steve Gallardo, District 5 ♦♦♦ COUNTY MANAGER Joy Rich ♦♦♦ ASSISTANT COUNTY MANAGER – CHIEF FINANCIAL OFFICER Shelby L. Scharbach v Organizational Chart vi Maricopa County County Administrative Office 301 West Jefferson Street 10th Floor December 21, 2017 Phoenix, AZ 85003-2143 Phone: 602-506-3571 Fax: 602-506-3328 The Honorable Board of Supervisors www.maricopa.gov Maricopa County County Administration Building 301 W. Jefferson Street Phoenix, AZ 85003 Arizona Revised Statute (A.R.S.) §41-1279.21 requires the Office of the Auditor General to conduct financial audits of the accounts and records of County governments. Pursuant to the statute, the Office of the Auditor General audited the Comprehensive Annual Financial Report (CAFR) of Maricopa County in accordance with generally accepted auditing standards for the year ended June 30, 2017. This report consists of management’s representations concerning the finances of Maricopa County. Consequently, management assumes full responsibility of the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of Maricopa County has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information
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