Financial Statements
Arizona Department of Transportation
Highway Expansion and Extension Loan
Program Fund
Fiscal Years Ended June 30, 2006 and 2005

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Financial Statements
Fiscal years ended June 30, 2006 and 2005

Contents
Independent Auditors’ Report .........................................................................................................1
Management’s Discussion and Analysis ...........................................................................................2

Basic Financial Statements
Statement of Net Assets..................................................................................................................6
Statement of Activities.....................................................................................................................7
Statement of Cash Flows.................................................................................................................8
Notes to Financial Statements..........................................................................................................9

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
June 30, 2006 and 2005
Management’s Discussion and Analysis
As management of the Arizona Department of Transportation, Highway Expansion and Extension Loan
Program (HELP) Fund, we offer readers of the Fund’s financial statements this narrative overview and
analysis of the financial activities of the Fund for the fiscal years ended June 30, 2006 and 2005. We
encourage readers to consider the information presented here in conjunction with the Fund’s financial
statements and the accompanying notes to the basic financial statements.
Financial Highlights
•

•
•

The assets of the HELP Fund exceeded its liabilities by $67,713,248 at the end of fiscal year 2006
as compared to $65,273,296 at fiscal year end 2005 and $63,899,875 at fiscal year end 2004. All
of this amount may be used to meet the HELP Fund’s operational needs for loans or other financial
assistance.
The HELP Fund’s total net assets increased by $2,439,952 and $1,373,421 for fiscal years 2006
and 2005, respectively.
Total loan amounts of $35.9 million were disbursed from July 1, 2005 to June 30, 2006 and $55.0
million from July 1, 2004 to June 30, 2005. Of the $35.9 million disbursed in fiscal year 2006,
$30.5 million was disbursed for projects on the Maricopa County Regional Freeway System, $4.8
million was disbursed to Pima County for the Alvernon Way construction project, and $0.6 million
was disbursed for other projects. Of the $55.0 million disbursed in fiscal year 2005, $7 million was
disbursed to the Town of Marana for the Thornydale Road reconstruction project, $40 million was
disbursed for projects on the Maricopa County Regional Freeway System, $5.3 million was
disbursed for the Arizona Department of Transportation’s I-10/I-19 traffic interchange project in
Tucson, and $2.7 million was disbursed for other projects.

Fund Financial Statements
Fund accounting The operations of the HELP Fund are accounted for with a separate set of selfbalancing accounts that comprise its assets, liabilities, fund balance, revenues and expenses.
Government resources are allocated to and accounted for based upon the purposes for which they are
to be spent and the means by which spending activities are controlled. The various transactions are
accounted for in one fund type as follows:
Proprietary funds Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. An enterprise fund is used by the Arizona
Department of Transportation (Department) to account for the HELP operation.
The Department’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail.

2

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Management’s Discussion and Analysis (continued)
June 30, 2006 and 2005
Financial Analysis
In governmental financial statements, net assets may serve over time as a useful indicator of a
government’s financial position. The HELP Fund’s net assets increased by $2,439,952 and
$1,373,421 by the end of fiscal years 2006 and 2005, respectively.
Table 1
Highway Expansion and Extension Loan Program Fund's Net Assets
as of June 30, 2006, 2005 and 2004

2006
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets:
Restricted
Total net assets

Business-type Activities
2005

2004

$ 129,218,849
109,007,095

$ 116,845,564
114,896,628

$ 142,796,225
83,544,472

238,225,944

231,742,192

226,340,697

18,230
170,494,466
170,512,696

14,430
166,454,466
166,468,896

26,356
162,414,466
162,440,822

67,713,248

65,273,296

63,899,875

$ 67,713,248

$

65,273,296

$

63,899,875

All of the HELP Fund’s net assets are restricted for loans and other financial assistance.
Changes in current assets for fiscal years 2006 and 2005 primarily related to changes in the percentage
of loans becoming due in less than one year and to balances of cash on deposit with the State Treasurer.
In fiscal year 2006, the current portion of loans receivables increased by $22,552,729 which was
partially offset by a reduction in cash on deposit with the State Treasurer of $6,529,192. For fiscal year
2005, the current portion of loans receivables decreased by $30,815,977 which was partially offset by
an increase in cash on deposit with the State Treasurer of $3,266,403.
In fiscal year 2006, non-current assets decreased by 5 percent as the percentage of loans becoming due
in less than one year increased. The increase in non-current assets in fiscal year 2005 resulted from new
loan receivables due to increased loan disbursements.

Non-current liabilities increased by $4,040,000 in both fiscal years 2006 and 2005. This increase was
the result of interest that accrued during each year on the Board Funding Obligation (BFO) Series
2003. Principal and interest on the BFO Series 2003 will be repaid to the State Treasurer in fiscal year
2008.
3

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Management’s Discussion and Analysis (continued)
June 30, 2006 and 2005

Table 2
Highway Expansion and Extension Loan Program Fund's Changes in Net Assets
for fiscal years ended June 30, 2006, 2005 and 2004
Business-type Activities
2006

2005

2004

Revenues:
Operating revenues:
Interest on loans receivables
Non-operating revenues:
Interest on investments
Total revenues
Expenses:
Operating expenses:
Interest on notes payable
Other
Total expenses
Increase <decrease> in net assets
Net assets - July 1
Net assets - June 30

$

3,281,361

$

3,008,667

$

3,529,351

3,432,020
6,713,381

2,724,486
5,733,153

1,559,446
5,088,797

4,040,000
233,429
4,273,429

4,040,000
319,732
4,359,732

4,097,236
316,465
4,413,701

2,439,952
65,273,296

1,373,421
63,899,875

675,096
63,224,779

$ 67,713,248

$ 65,273,296

$ 63,899,875

At the end of fiscal years 2006 and 2005, the HELP Fund is able to report a positive balance of net
assets.
The HELP Fund’s interest on loans receivables revenues increased by 9 percent in fiscal year 2006 as
compared to a decrease of 15 percent in fiscal year 2005. Higher average principal balances
outstanding accounted for the increase in interest on loans in fiscal year 2006. Lower interest rates on
HELP loans due to prevailing market conditions accounted for the decrease in interest on loans in fiscal
year 2005.
Higher average interest rates on invested cash due to prevailing market conditions during fiscal years
2006 and 2005 resulted in increased interest on investments of $707,534 for fiscal year 2006 and
$1,165,040 for fiscal year 2005.

4

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Management’s Discussion and Analysis (continued)
June 30, 2006 and 2005
There was no change in the HELP Fund’s interest expense on notes payable for fiscal year 2006. The
HELP Fund’s interest expense on notes payable declined by 1 percent for fiscal year 2005. This
decline was primarily due to lower average interest rates on the BFO Series 2003 that was outstanding
for the entire year. Other operating expenses decreased by 27 percent in fiscal year 2006 primarily due
to a reduction in the number of Department staff that charge salaries and benefits to the HELP Fund.
Notes to the financial statements The notes provide additional information that is essential to a full
understanding of the data provided in the fund financial statements. The notes to the financial statements
can be found on pages 9-15 of this report.
Requests for information This financial report is designed to provide our citizens, taxpayers,
customers, investors and creditors with an overview of the Fund’s finances. Questions concerning any
of the information provided in this report or request for additional financial information should be
addressed to the Controller, Arizona Department of Transportation, 206 S. 17th Avenue, Phoenix,
Arizona, 85007 or by visiting our website at
http://www.azdot.gov/Inside_ADOT/fms

5

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Statements of Net Assets
June 30, 2006 and 2005

2006
Assets
Current assets:
Restricted cash on deposit with the State Treasurer (Note 1C) $
Receivables:
Accrued interest
Loans (Note 3A)
Due from other Arizona Department of Transportation
funds
Due from Arizona counties and cities
Total current assets
Non-current assets:
Receivables:
Loans (Note 3A)
Total noncurrent assets
Total assets

88,775,892

$ 95,305,084

430,840
39,086,414

272,427
16,533,685

805,271
120,432
129,218,849

4,531,210
203,158
116,845,564

109,007,095
109,007,095
238,225,944

114,896,628
114,896,628
231,742,192

5,209
13,021
18,230

4,310
10,120
14,430

20,000,000
150,494,466
170,494,466
170,512,696

20,000,000
146,454,466
166,454,466
166,468,896

67,713,248
67,713,248

65,273,296
$ 65,273,296

Liabilities
Current Liabilities:
Accrued payroll and other accrued expenses
Compensated absences
Total current liabilities
Non-current liabilities:
Advance from other Arizona Department of Transportation
funds (Note 3B)
Notes payable (Note 3C)
Total noncurrent liabilities
Total liabilities
Net assets
Restricted for loans and other financial assistance
Total net assets

$

2005

The notes to the financial statements are an integral part of this statement.

6

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Statements of Activities
For the fiscal years ended June 30, 2006 and 2005

2006
Operating revenues:
Interest on loans receivables
Total operating revenues
Operating expenses:
Salaries and related benefits
Supplies
Professional and outside services
Travel
Interest on notes payable
Other
Total operating expenses
Operating loss
Non-operating revenues:
Interest on investments
Total non-operating revenues
Change in net assets
Total net assets - July 1
Total net assets - June 30

$

3,281,361
3,281,361
133,778
962
96,269
667
4,040,000
1,753
4,273,429
<992,068>

3,432,020
3,432,020
2,439,952
65,273,296
$ 67,713,248

2005
$

3,008,667
3,008,667
201,557
877
110,301
1,297
4,040,000
5,700
4,359,732
<1,351,065>

2,724,486
2,724,486
1,373,421
63,899,875
$ 65,273,296

The notes to the financial statements are an integral part of this statement.

7

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Statements of Cash Flows
For the fiscal years ended June 30, 2006 and 2005

2006
Cash flows from operating activities:
Receipts from customers
Receipts from other funds
Receipts from other agencies
Payments to suppliers
Payments to employees
Payments to other funds
Payments to other agencies
Other payments
Net cash provided <used> by operating activities

$

Cash flows from investing activities:
Interest on investments
Net cash provided by investing activities
Net increase <decrease> in cash
Cash - July 1
Cash - June 30
Reconciliation of operating income to net cash
provided <used> by operating activities:
Operating loss
Net changes in assets and liabilities:
Receivables
Due from other Arizona Department of
Transportation funds
Due from Arizona counties and cities
Accrued payroll and other accrued expenses
Compensated absences
Notes payable
Net cash provided <used> by operating activities

7,090,026 $
1,546,603
7,033,735
44,258,248
12,157,669
10,233,117
<30,515>
<29,649>
<130,645>
<214,780>
<31,018,600>
<47,427,545>
<4,902,716>
<7,681,528>
<1,753>
<5,700>
678,766
<9,802,799>

3,273,607
3,273,607

$

<6,529,192>
95,305,084
88,775,892 $

$

<992,068> $
<16,663,196>

$

2005

3,725,939
82,726
899
2,901
4,040,000
<9,802,799> $

2,587,637
2,587,637
3,266,403
92,038,681
95,305,084

<1,351,065>
<536,179>
<1,645,053>
182,989
<2,401>
<9,525>
4,040,000
678,766

The notes to the financial statements are an integral part of this statement.

8

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Notes to Financial Statements
June 30, 2006 and 2005
NOTE 1–SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Arizona Department of Transportation (Department) was authorized in 1996 to administer a State
Infrastructure Bank under a cooperative agreement with the Federal Highway Administration (FHWA),
pursuant to Section 350 of the National Highway System Designation Act of 1995. The Highway
Expansion and Extension Loan Program (HELP) was authorized to be established as Arizona’s State
Infrastructure Bank under Arizona Revised Statutes, Title 28, Chapter 21. The HELP Fund (Fund)
was initially capitalized with grants from FHWA and state matching funds.
The HELP is administered by a seven-member advisory committee. The members serve staggered
four-year terms and serve no more than two consecutive terms. The committee is charged with
reviewing requests for loans and financial assistance, making recommendations to the Transportation
Board of the State of Arizona Department of Transportation (Transportation Board) and submitting an
annual report to the Governor and State Legislature. Qualified borrowers, which include any political
subdivision, the State or its agencies or Indian tribes, may submit loan applications to HELP for eligible
projects.
The Transportation Board may make loans or provide other financial assistance to qualified borrowers,
including the Department, from monies in the Fund for eligible projects; enter into loan repayment
agreements with recipients; and apply for, accept and administer grants and other financial assistance
from the United States and from other public and private sources that are made for deposit in the Fund.
HELP does not increase the Transportation Board’s bonding authority.
The Department is a department of the State of Arizona and is not a legally separate entity. The
Department has no component units. The Director of the Department serves as the Chief
Administrative Officer and is directly responsible to the Governor. The Governor appoints a sevenmember Transportation Board, which has responsibility for establishing a complete system of state
highway routes and distributing monies for local airport facilities’ projects through a grant program.
The State Treasurer invests the cash balances of the Department.
The financial statements present only the funds comprising the Fund and are not intended to present
fairly the financial position or results of operations of the Department.
The accounting policies of the Department conform to generally accepted accounting principles in the
United States of America (GAAP) as applicable to governmental units. The following is a summary of
the more significant policies:

9

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Notes to Financial Statements (continued)
June 30, 2006 and 2005
NOTE 1–SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES–Continued
B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The economic resources measurement focus and the accrual basis of accounting are followed for
reporting purposes. Under the accrual basis of accounting, revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Federal grants and reimbursements are recognized as revenues as soon as all eligibility requirements
imposed by the provider have been met.
The Department uses an enterprise fund to account for the Fund and for its loan distribution operation.
The Fund can receive monies from the FHWA along with applicable state matching funds, State
Transportation Board Funding Obligations, direct state appropriations and other lawfully available
sources. The Transportation Board may use monies in the Fund to make eligible project loans or
provide other financial assistance to qualified borrowers; subsidize interest rates; provide other forms
and methods of financial assistance; and pay the costs to administer the Fund.
Transactions that would be treated as revenues or expenses if they involved organizations external to the
governmental unit are accounted for as revenues or expenses in the funds involved. Transactions which
constitute reimbursements of a fund for expenses initially made from that fund, which are properly
applicable to another fund, are recorded as expenses in the reimbursing fund and as reductions of the
expenses in the fund that is reimbursed.
The preparation of these financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. Actual results could differ from those estimates.
C. Assets, Liabilities, and Net Assets
Deposits and Investments
The cash balance is on deposit with the State Treasurer for pooled investment purposes and is not
evidenced by securities that exist in physical or book entry form in the Fund’s name. All investments are
carried in the name of the State of Arizona. State statutes require the State Treasurer to invest these
pooled funds in collateralized time certificates of deposit, repurchase agreements, obligations of the U.S.
Government and other permitted investments. All investments are carried at fair value. These balances
are not subject to GASB Statement No. 3, Deposits with Financial Institutions, Investments
(including Repurchase Agreements), and Reverse Repurchase Agreements, classification because
they are included in the state’s investment pool.

10

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Notes to Financial Statements (continued)
June 30, 2006 and 2005
NOTE 1–SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES–Continued
The investment pool is not required to register (and is not registered) with the Securities and Exchange
Commission under the 1940 Investment Advisors Act. The activity and performance of the pool is
reviewed monthly by the State Board of Investment in accordance with ARS §35-311. The fair value
of investments is measured on a monthly basis. Participant shares are purchased and sold based on the
Net Asset Value (NAV) of the shares. The NAV is determined by dividing the fair value of the
portfolio by the total shares outstanding. The State Treasurer does not contract with an outside insurer
in order to guarantee the value of the portfolio or the price of shares redeemed. As of June 30, 2006
and 2005, the state’s investment pool was not rated.
Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as interfund receivables/payables. All other outstanding balances
between the Fund and the U.S. Government, Arizona counties and cities, and other state agencies are
reported as “due to/from”.
Restricted Assets
Resources of the Fund are classified as restricted assets on the balance sheet because their use is limited
by state statutes.
Compensated Absences
It is the Department’s policy to permit employees to accumulate earned but unused sick leave and
vacation benefits. There is no liability for unpaid accumulated sick leave. All vacation pay is accrued
when incurred in the proprietary fund financial statements. A liability for these amounts is reported as
current liabilities.
Effective July 1, 1998, state employees are eligible to receive payment for an accumulated sick leave
balance of 500 hours or more with a maximum of 1,500 hours, upon retirement directly from state
service. The benefit value is calculated by taking the state hourly rate of pay at the retirement date,
multiplied by the number of sick hours at the retirement date, times the eligibility percentage. The
eligibility percentage varies based upon the number of accumulated sick hours from 25 percent for 500
hours to a maximum of 50 percent for 1,500 hours. The maximum benefit value is $30,000. The
benefit is paid out in annual installments over three years. The Retiree Accumulated Sick Leave Fund is
accounted for on the State’s financial statements as an Internal Service Fund.

11

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Notes to Financial Statements (continued)
June 30, 2006 and 2005
NOTE 1–SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES–Continued
Employees are allowed to accumulate up to 240 hours of vacation leave (320 hours for exempt
employees) which is paid when vacation is taken or upon termination of employment at the individual’s
then current rate of pay. For the proprietary funds, all of the outstanding vacation at June 30 is
recorded as a current liability.
Net Assets
The difference between assets and liabilities is reported as “Net Assets” on the proprietary fund
statements.
D. Revenues and Expenses
Revenues and expenses of proprietary funds are classified as operating and non-operating and as subclassified by object (e.g., salaries, travel, interest on notes payable, etc). Operating revenues and
expenses generally result from providing services and producing and delivering goods. All other
revenues and expenses are reported as non-operating.

NOTE 2–STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
The expenses of the Fund are not governed by appropriations of the state legislature and therefore are
not subject to the limitations of a legally adopted budget.

12

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Notes to Financial Statements (continued)
June 30, 2006 and 2005
NOTE 3–DETAILED NOTES
A. Loans Receivables
Loans receivables represent loans made pursuant to Loan Repayment Agreements. Twenty-one loans
have balances outstanding or are pending as of June 30, 2006, as follows:
PROJECT SPONSOR

LOAN DATE

CITY OF YUMA
CITY OF YUMA
ADOT
PIMA COUNTY
PIMA COUNTY
GILA COUNTY
GILA COUNTY
GILA COUNTY
REGIONAL FREEWAY SYSTEM
TOWN OF ORO VALLEY
CITY OF SAFFORD
TOWN OF THATCHER
TOWN OF MARANA
CITY OF TUCSON
ADOT
PIMA COUNTY
CITY OF KINGMAN
CITY OF TOMBSTONE
MOHAVE COUNTY
CITY OF PHOENIX
CITY OF GOODYEAR

04/20/2001
06/15/2001
09/21/2001
12/14/2001
12/14/2001
04/19/2002
04/19/2002
04/19/2002
11/21/2003
02/20/2004
08/16/2002
08/16/2002
11/19/2004
08/20/2004
11/19/2004
05/20/2005
09/23/2005
11/18/2005
04/21/2006
11/18/2005
04/21/2006

INTEREST
RATE*
1.65%
1.77%
3.30%
3.23%
3.23%
1.43%
1.81%
To be determined
1.44%
2.52%
2.42%
1.56%
2.51%
To be determined
To be determined
3.60%
To be determined
To be determined
To be determined
To be determined
To be determined

TOTAL

AUTHORIZED
FINAL
LOAN AMOUNT MATURITY
1,000,000
Dec-06
2,000,000
Jul-06
50,000,000
Dec-08
3,700,000
Jul-07
1,400,000
Jul-07
1,237,500
Mar-09
600,000
Jun-08
487,500
Jun-08
80,500,000
Aug-08
5,000,000
Feb 08
2,000,000
Oct-07
2,000,000
Oct-07
7,000,000
Mar-10
12,293,000
Jan-09
18,500,000
Jul-09
4,836,000
Jun-09
2,000,000
Oct-10
150,000
Nov-10
8,700,000
Jun-10
11,900,000
Jun-10
7,369,000
Jun-10
$

222,673,000

DRAWS TO
OUTSTANDING
DATE
LOAN BALANCE
1,000,000
200,000
2,000,000
500,000
50,000,000
50,000,000
3,700,000
702,771
1,400,000
200,000
1,237,500
680,595
600,000
400,000
80,500,000
80,500,000
5,000,000
2,604,143
2,000,000
1,285,000
2,000,000
1,285,000
7,000,000
4,900,000
4,836,000
4,836,000
$

161,273,500

$

148,093,509 $

DUE WITHIN
ONE YEAR
200,000
500,000
25,000,000
702,771
200,000
247,500
200,000
6,600,000
104,143
1,105,000
1,105,000
2,000,000
1,122,000
39,086,414

* Interest Rate will be determined on the date of the first draw.

The activity for the fiscal year ended June 30, 2006, was as follows:

Loans receivable

Beginning
Balance
July 1, 2005
$ 131,430,313

Additions
$ 35,854,600

Ending
Balance
Reductions
June 30, 2006
$ <19,191,404> $ 148,093,509

Due Within
One Year
$ 39,086,414

13

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Notes to Financial Statements (continued)
June 30, 2006 and 2005
NOTE 3–DETAILED NOTES–Continued
Twenty-four loans have balances outstanding or are pending as of June 30, 2005, as follows:
PROJECT SPONSOR

LOAN DATE

INTEREST
RATE*

SANTA CRUZ COUNTY
CITY OF YUMA
TOWN OF PAYSON
CITY OF TUCSON
CITY OF YUMA
ADOT
PIMA COUNTY
PIMA COUNTY
ADOT
GILA COUNTY
GILA COUNTY
GILA COUNTY
ADOT
YAVAPAI COUNTY
ADOT
REGIONAL FREEWAY SYSTEM
TOWN OF ORO VALLEY
TOWN OF ORO VALLEY
CITY OF SAFFORD
TOWN OF THATCHER
TOWN OF MARANA
CITY OF TUCSON
ADOT
PIMA COUNTY

01/19/2001
04/20/2001
06/15/2001
06/15/2001
06/15/2001
09/21/2001
12/14/2001
12/14/2001
03/15/2002
04/19/2002
04/19/2002
04/19/2002
05/17/2002
06/21/2002
06/21/2002
11/21/2003
08/16/2002
02/20/2004
08/16/2002
08/16/2002
11/19/2004
08/20/2004
11/19/2004
05/20/2005

3.11%
1.65%
3.56%
2.91%
1.77%
3.30%
3.23%
3.23%
0.86%
1.43%
1.81%
To be determined
1.99%
2.25%
1.35%
1.44%
1.19%
2.52%
2.42%
1.56%
2.51%
To be determined
To be determined
To be determined

TOTAL

AUTHORIZED
FINAL
LOAN AMOUNT MATURITY
1,150,000
1,000,000
1,100,000
4,500,000
2,000,000
50,000,000
3,700,000
1,400,000
5,500,000
1,237,500
600,000
487,500
5,000,000
4,500,000
650,000
80,500,000
1,716,000
5,000,000
2,000,000
2,000,000
7,000,000
12,293,000
18,500,000
4,836,000
$

216,670,000

DRAWS TO
DATE

Jan-07
Dec-06
Jul-06
Jan-06
Jul-06
Dec-08
Jul-07
Jul-07
Jun-06
Mar-09
Jun-08
Jun-08
Jun-06
Jun-06
Nov-06
Aug-08
Jul-05
Feb 08
Oct-07
Oct-07
Mar-10
Jan-09
Jul-09
Jun-09

OUTSTANDING
LOAN BALANCE

643,827
1,000,000
1,100,000
4,500,000
2,000,000
50,000,000
3,700,000
1,400,000
3,580,269
1,237,500
600,000
5,000,000
4,500,000
650,000
50,000,000
1,716,000
5,000,000
2,000,000
2,000,000
7,000,000
$

147,627,596

253,827
400,000
787,385
1,300,000
1,000,000
50,000,000
1,442,772
500,000
1,080,269
928,095
600,000
5,000,000
2,250,000
434,865
50,000,000
780,000
4,023,100
1,825,000
1,825,000
7,000,000
$

131,430,313 $

DUE WITHIN
ONE YEAR
130,000
200,000
191,051
1,300,000
500,000
740,000
300,000
1,080,269
247,500
200,000
5,000,000
2,250,000
434,865
780,000
540,000
540,000
2,100,000
16,533,685

* Interest Rate will be determined on the date of the first draw.

The activity for the fiscal year ended June 30, 2005, was as follows:

Loans receivable

Beginning
Balance
July 1, 2004
$ 130,894,134

Additions
$ 55,027,545

Ending
Balance
Reductions
June 30, 2005
$ <54,491,366> $ 131,430,313

Due Within
One Year
$ 16,533,685

B. Advance from other Arizona Department of Transportation funds
Laws 1999, Chapter 2 (SB 1002) authorized the transfer of $20,000,000 from the State Highway
Fund to the HELP Fund in fiscal year 2000. This amount is shown as Advance to Other Funds in the
State Highway Fund and Advance from Other Funds in this Fund. The Advance is due no later than
December 31, 2008.
C. Notes Payable
Laws 1999, Chapter 189 (SB 1201) and Laws 2001, Chapter 238 (HB 2636) authorized a Board
Funding Obligation (BFO) of $140,000,000 to the Fund in fiscal year 2004. Interest accrued to date is
$10,494,466. The total principal amount of the BFO and interest is shown as Notes Payable. Both of
the principal and interest on the BFO are due no later than June 2, 2008.
14

Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Notes to Financial Statements (continued)
June 30, 2006 and 2005

NOTE 4–OTHER INFORMATION
A. Contingent Liabilities
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, principally the federal government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenses which may
be disallowed by the grantor cannot be determined at this time although the Fund expects such amounts,
if any, to be immaterial.

15