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Providing situational awareness training to faculty and studentsCreation of the Career and Transfer CenterBuilding of the Regional Workforce Training FacilityImplementing One Stop and wrap around services DistrictwideClosing the financial audits for fiscal years 2020 and 2021Integration of ERP systems, allowing Nexus Student system to connect to the NexusFinance/HR/Payroll systemContinual enhancements to Nexus ERP systemsDevelopment and execution of a Master Academic PlanCreation of an Equity CouncilProviding Diversity & Inclusion training for all staff and Governing Board membersAcknowledgementsThe preparation of this report could not be accomplished without the efficient anddedicated efforts of the Business Office staff. We would like to express our appreciationto all those who assisted in, and contributed to, the preparation of this report.Respectfully submitted,Chris WodkaLuisa M. OttVice President of Business AffairsExecutive Director II, AccountingServices/Comptroller

Pinal County Community College District(Central Arizona College)Principal OfficersJune 30, 2020District Governing BoardDaniel Miller, President, District 4David Waldron, Vice President/Secretary, District 5Gladys S. Christensen, President, District 1Richard D. Gibson, District 3Dr. David Odiorne, District 2Senior AdministrationDr. Jacquelyn Elliott, PresidentJenni Cardenas, Vice President Student ServicesChris Wodka, Vice President Business AffairsDr. Mary K. Gilliland, Vice President Academic AffairsBrandi Clark, Vice President Talent Development & Legal Affairs

7WIOAPRISON PROGRAMSGED/ABESMALL BUSINESSDEVELOPMENT CENTERINSTITUTIONAL RESEARCHCURRICULUM & QUALITYINITIATIVESWORKFORCEDEVELOPMENTLEARNING SUPPORTLIBRARYACADEMICSACADEMIC AFFAIRSPUBLIC RELATIONS &MARKETINGSTUDENT LIFEENROLLMENTMANAGEMENTSTUDENT SERVICESOMBUDS DENT/CEOGOVERNING BOARDPinal County Community College District(Central Arizona College)Organizational Chart as of June 30, 2020FACILITIESINFORMATIONTECHNOLOGY SERVICESCAMPUS POLICEBUDGETACCOUNTING SERVICES/COMPTROLLERPURCHASINGBUSINESS AFFAIRSTALENT DEVELOPMENTTALENT DEVELOPMENT &LEGAL AFFAIRSADMINISTRATIVE SUPPORT TOTHE PRESIDENT & GOVERNINGBOARDCAC FOUNDATION

Financial Section

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LINDSEY A. PERRYAUDITOR GENERALARIZONAAUDITOR GENERALMELANIE M. CHESNEYDEPUTY AUDITOR GENERALIndependent auditors’ reportMembers of the Arizona State LegislatureThe Governing Board ofPinal County Community College DistrictReport on the financial statementsWe have audited the accompanying financial statements of the business-type activities and discretelypresented component unit of the Pinal County Community College District as of and for the year endedJune 30, 2020, and the related notes to the financial statements, which collectively comprise the District’sbasic financial statements as listed in the table of contents.Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with U.S. generally accepted accounting principles; this includes the design, implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial statementsthat are free from material misstatement, whether due to fraud or error.Auditors’ responsibilityOur responsibility is to express opinions on these financial statements based on our audit. We did not auditthe financial statements of the discretely presented component unit. Those statements were audited byother auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amountsincluded for the discretely presented component unit, is based solely on the other auditors’ report. Weconducted our audit in accordance with U.S. generally accepted auditing standards and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from material misstatement. The otherauditors did not audit the discretely presented component unit’s financial statements in accordance withGovernment Auditing Standards.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditors’ judgment, including the assessmentof the risks of material misstatement of the financial statements, whether due to fraud or error. In makingthose risk assessments, the auditors consider internal control relevant to the District’s preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internalcontrol. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.2910 N 44 th St., Ste. 410 PHOENIX, AZ85018-7271 (602) 553-0333 WWW.AZAUDITOR.GOV

OpinionsIn our opinion, based on our audit and the report of the other auditors, the financial statements referred toabove present fairly, in all material respects, the respective financial position of the business-type activitiesand discretely presented component unit of the District as of June 30, 2020, and the respective changes infinancial position and, where applicable, cash flows thereof for the year then ended in accordance with U.S.generally accepted accounting principles.Other mattersRequired supplementary informationU.S. generally accepted accounting principles require that the management’s discussion and analysis onpages 12 through 19, schedule of the District’s proportionate share of the net pension liability on page 56, andschedule of District pension contributions on page 57 be presented to supplement the basic financialstatements. Such information, although not a part of the basic financial statements, is required by theGovernmental Accounting Standards Board, who considers it to be an essential part of financial reporting forplacing the basic financial statements in an appropriate operational, economic, or historical context. We haveapplied certain limited procedures to the required supplementary information in accordance with U.S.generally accepted auditing standards, which consisted of inquiries of management about the methods ofpreparing the information and comparing the information for consistency with management’s responses toour inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basicfinancial statements. We do not express an opinion or provide any assurance on the information because thelimited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.Other informationOur audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the District’s basic financial statements. The introductory and statistical sections listed in the tableof contents are presented for purposes of additional analysis and are not required parts of the basic financialstatements.The introductory and statistical sections have not been subjected to the auditing procedures applied in theaudit of the basic financial statements, and accordingly, we do not express an opinion or provide anyassurance on them.Other reporting required by Government Auditing StandardsIn accordance with Government Auditing Standards, we will issue our report on our consideration of theDistrict’s internal control over financial reporting and on our tests of its compliance with certain provisionsof laws, regulations, contracts, and grant agreements and other matters at a future date. The purpose ofthat report is solely to describe the scope of our testing of internal control over financial reporting andcompliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’sinternal control over financial reporting or on compliance. That report is an integral part of an audit performedin accordance with Government Auditing Standards in considering the District’s internal control over financialreporting and compliance.Lindsey A. PerryLindsey A. Perry, CPA, CFEAuditor GeneralApril 25, 2022

Pinal County Community College District(Central Arizona College)Management’s Discussion and AnalysisFiscal Year Ended June 30, 2020Our discussion and analysis of the District’s financial performance provides an overview of the District’sfinancial activities for the year ended June 30, 2020. Please read it in conjunction with the transmittalletter on page 1 and the District’s financial statements, which immediately follow.Basic Financial StatementsThe District’s annual financial statements are presented in accordance with the GovernmentAccounting Standards Board (GASB) Statement No. 34, Basic Financial Statements—andManagement’s Discussion and Analysis—for State and Local Governments and Statement No. 35,Basic Financial Statements—and Management’s Discussion and Analysis—for Public Colleges andUniversities. These statements allow for the presentation in a consolidated, single-column, entity-wideformat. This format is similar to the type of financial statements typical of a business enterprise. Inaccordance with GASB Statement No. 39, Determining Whether Certain Organizations are ComponentUnits, the District reports as a component unit those organizations that raise and hold economicresources for the direct benefit of the District. Based on GASB Statement No. 39, the District has onecomponent unit, the Central Arizona College Foundation (Foundation). The Foundation is auditedseparately from the District, and its financial activity is presented in conjunction with the District’sfinancial statements.Information on the component unit can be found in the report in the component unit’s Statement ofFinancial Position and Statement of Activities, as well as Note 10. Management’s Discussion andAnalysis focuses only on the District and does not address the component unit.The Statement of Net Position reflects the financial position of the District at June 30, 2020. Thestatement shows the District’s assets, deferred outflows and inflows of resources, liabilities, and netposition. Net position reflects the institutional equity in the District’s total assets.The Statement of Revenues, Expenses, and Changes in Net Position reflects the results of operationsand changes for the fiscal year ended June 30, 2020. This statement reports revenues and expenses,categorized as operating and nonoperating, and the changes in net position for the year.The Statement of Cash Flows reflects the cash and cash equivalent inflows and outflows for the yearended June 30, 2020. It shows cash flows from operating activities, noncapital financing activities,capital and related financing activities, and investing activities. It also provides for a reconciliation ofbeginning and ending cash and cash equivalent balances for the year and a reconciliation of the cashflows from operating activities to the operating loss as reported on the Statement of Revenues,Expenses, and Changes in Net Position.12

Pinal County Community College District(Central Arizona College)Management’s Discussion and AnalysisFiscal Year Ended June 30, 2020Condensed Financial InformationNet Position — Primary GovernmentAssets:Current assetsNoncurrent assets, other than capital assetsCapital assets, netTotal assetsDeferred Outflows of Resources:Deferred amount on refundingDeferred outflows related to pensionsTotal deferred outflows of resourcesLiabilities:Long-term liabilitiesOther liabilitiesTotal liabilitiesDeferred Inflows of Resources:Deferred inflows related to pensionsTotal deferred inflows of resourcesNet Position:Net investment in capital assetsRestrictedUnrestrictedTotal net positionAs ofJune 30, 2020As ofJune 30, 2019 119,584,5392,975,794169,646,965292,207,298 ,2616,815,04979,596,567 150,827,87766,491,1299,012,30261,455,887 136,959,318Financial Highlights and AnalysisTotal assets increased by 7.7 million in the fiscal year ending June 30, 2020, due largely to anincrease in current cash and investments and a decrease in capital assets, net of depreciation. Theincrease in cash and investments classified as current was primarily from revenues received in excessof expenses. The decrease in capital assets, net of depreciation was primarily due to depreciation ofassets being greater than additions to capital assets in the current year. Total liabilities decreased by 6.3 million primarily due to a decrease in long-term debt as well as a decrease in other liabilities. Thedecrease in long-term debt of 4.3 million primarily included scheduled payments on General13

Pinal County Community College District(Central Arizona College)Management’s Discussion and AnalysisFiscal Year Ended June 30, 2020Obligation bonds. The decrease in other liabilities was due to a 1.5 million decrease in accountspayable due to invoices being paid timely prior to year-end compared to the prior year, as well asunearned revenue decreasing by .5 million due as it directly relates to lower tuition revenue. Total netposition increased by 13.9 million (10 percent) in fiscal year 2020 compared with an increase of 10.9million (9 percent) over the previous year.Changes in Net Position — Primary GovernmentYear EndedJune 30, 2020 3,840,47764,424,905(60,584,428)Operating revenuesOperating expensesOperating LossNonoperating revenues less expensesCapital grants and giftsIncrease in net positionNet position, beginning of yearNet position, end of yearYear EndedJune 30, 2019 661,824139,00013,868,559136,959,318 150,827,87710,934,722126,024,596 136,959,318During fiscal year 2020, there was a increase in total revenues of .4 million when compared with theprior year. Property tax revenues decreased by .7 million as a net result of amounts received and taxadjustments in the current year. The primary assessed values and secondary assessed valuesincreased around 7 percent for fiscal year 2020. Operating revenues decreased by .7 million duemainly to decreases in tuition and fee revenue. Tuition and fee revenue decreased mainly because ofdecreases in enrollment. State appropriations increased by 1.7 million due to increased amountsprovided in the state budget.Total expenses decreased by 2.5 percent as compared with the prior year due primarily to a 3.5million decrease in institutional support expenses as well as a 1 million increase in academic supportexpenses and a .8 million increase in instruction expenses.14

Pinal County Community College District(Central Arizona College)Management’s Discussion and AnalysisFiscal Year Ended June 30, 2020The following is a summary of revenues for fiscal years ended June 30, 2020, and June 30, 2019:Revenues by Source — Primary GovernmentYear EndedJune 30, 2020Year EndedJune 30, 2019Operating revenues:Tuition and fees (net ofscholarship allowances)Other operating revenuesTotal operating revenues 3,166,369674,1083,840,4773.9%0.8%4.7% 3,856,527675,5224,532,0494.7%0.8%5.5%Nonoperating revenues:Property taxesState appropriationsShare of state sales taxesGovernment grantsPrivate grants and giftsInvestment incomeGain on disposal of capital assetsTotal nonoperating revenuesCapital grants and giftsTotal 11,397,60211,34878,421,08822,261 304,04577,215,287139,000 00.0%15

Pinal County Community College District(Central Arizona College)Management’s Discussion and AnalysisFiscal Year Ended June 30, 202016

Pinal County Community College District(Central Arizona College)Management’s Discussion and AnalysisFiscal Year Ended June 30, 2020The following is a summary of expenses for fiscal years ended June 30, 2020 and June 30, 2019:Expenses by Function — Primary GovernmentYear EndedYear EndedJune 30, 2020June 30, 2019Operating expenses:Educational and general:InstructionPublic serviceAcademic supportStudent services 18,758,19727.4% 021.3%18,072,22325.5%Operation and maintenance of 518.0%5,463,9737.7%1.4%Institutional supportAuxiliary enterprisesDepreciationTotal operating 9,3765.9%Nonoperating expenses:Interest expense on debtLoss on disposal of capital assetsTotal nonoperating expensesTotal expenses0.0%394,0870.6%3,990,362-5.8%4,553,4636.5% 68,415,267100% 70,951,614100%17

Pinal County Community College District(Central Arizona College)Management’s Discussion and AnalysisFiscal Year Ended June 30, 2020Capital Assets and Debt AdministrationAs of June 30, 2020, the District’s capital assets, net of accumulated depreciation, totaled 170 million,a decrease of 4.3 million from the prior year, due mainly to an increase in depreciation expense andthe disposal of equipment, of which some, was not fully depreciated. Capital a

The District Governing Board of Pinal County Community College District: The Annual Comprehensive Financial Report of the Pinal County Community College District (the "District"), for the fiscal year ended June 30, 2020, is submitted herewith. Responsibility for both the accuracy of the presented data and the completeness and