STATE OF NEW MEXICO EAST TORRANCE SOIL AND WATER CONSERVATION DISTRICT. Independent Accountants Report on Applying Agreed-Upon Procedures

Transcription

1 STAT OF NW MXICO AST TORRANC SOIL AND WATR CONSRVATION DISTRICT Independent Accuntants Reprt n Applying Agreed-Upn Prcedures Fr the Year nded JUN 30, 201 CALHOON ACCOUNTING & TAX SRVICS STANCIA, NM 8701

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3 STAT OF NW MXICO AST TORRANC SOIL AND WATR CONSRVATION DISTRICT Table f Cntents JUN 30, 201 Page Official Rster 1 Independent Accuntants Reprt n Applying Agreed-Upn Prcedures 2-8 Schedule f Revenues and xpenditures Budget and Actual (Nn-GAAP Budget Basis) 9 Year-end Financial Reprt Submitted t DFA 10 Schedule f Findings and Respnses 11 xit Cnference 12

4 STAT OF NW MXICO AST TORRANC SOIL AND WATR CONSRVATION DISTRICT Official Rster JUN 30, 201 Bard f Supervisrs Name Ryan Schwebach Bill Wrye Jim Berlier Jasn Brumley Frnia Jarmill Title Chairman Vice-Chairman Secretary/Treasurer Member Member Staff Cheri Lujan District Manager 1

5 CALHOON ACCOUNTING & TAX SRVICS PO BOX 945 STANCIA, NW MXICO 8701 INDPNDNT ACCOUNTANTS RPORT ON APPLYING AGRD-UPON PROCDURS Timthy Keller New Mexic State Auditr The Bard f Supervisrs ast Trrance Sil and Water Cnservatin District I have perfrmed certain agreed-upn prcedures, as enumerated belw, with respect t ast Trrance Sil and Water Cnservatin District (TSWCD), fr the year ended June 30, 201. The TSWCD was determined t be a Tier 4 entity under the Audit Act, Sectin B (4) NMSA 1978 and Sectin NMAC. The prcedures were agreed t by TSWCD thrugh the Office f the New Mexic State Auditr. TSWCD s management is respnsible fr the rganizatin s accunting recrds. This agreed-upn prcedures engagement was cnducted in accrdance with attestatin standards established by the American Institute f Certified Public Accuntants. The sufficiency f these prcedures is slely the respnsibility f thse parties specified in the reprt. Cnsequently, I make n representatin regarding the sufficiency f the prcedures described belw either fr the purpse fr which this reprt has been requested r fr any ther purpse. My prcedures and findings are as fllws: 1. Verify the lcal public bdy s revenue calculatin and tier determinatin dcumented n the frm prvided at under Tiered System Reprting Main Page. The abve mentined revenue calculatin and tier determinatin was accurate and TSWCD qualifies fr Tier 4. 2

6 Timthy Keller New Mexic State Auditr The Bard f Supervisrs ast Trrance Sil and Water Cnservatin District 2. CASH Prcedures a. Determine whether bank recnciliatins are being perfrmed in a timely manner and whether all bank and investment statements fr the fiscal year are cmplete and nhand. b. Perfrm a randm test f bank recnciliatins fr accuracy. Als, trace ending balances t the general ledger, supprting dcumentatin and the financial reprts submitted t DFA-Lcal Gvernment Divisin (DFA-LGD). c. Determine whether the lcal public bdy s financial institutins have prvided it with the 50% f pledged cllateral n all uninsured depsits as required by Sectin NMSA 1978, NM Public Mney Act, if applicable. Findings fr Prcedures 2(a) 2(c) a. Bank recnciliatins are being perfrmed in a timely manner and all statements are cmplete and n hand and accunted fr. b. Bank recnciliatins are accurate and ending balances traced t the general ledger, as well as, the supprting dcumentatin. Bank balances are reprted in the quarterly reprts submitted t the Department f Finance-Lcal Gvernment Divisin as required by the department. c. As f June 30, 201, Wells Farg prvided 50% pledged cllateral n the excess f uninsured depsits as required by Sectin NMSA 1978, NM Public Mney Act. 3. CAPITAL ASSTS Prcedures Verify that the lcal public bdy is perfrming a yearly inventry as required by Sectin NMSA

7 Timthy Keller New Mexic State Auditr The Bard f Supervisrs ast Trrance Sil and Water Cnservatin District Findings fr Prcedure 3 TSWCD is perfrming a yearly inventry as required by Sectin NMSA 1978 and maintains a capital asset listing. 4. RVNU Prcedures Identify the nature and amunt f revenue frm surces by reviewing the budget, agreements, rate schedules, and underlying dcumentatin. a. Perfrm an analytical review; test actual revenue cmpared t budgeted revenue fr the year fr each type f revenue. Selected a sample f revenues and tested fr the fllwing attributes: b. Amunt recrded in the general ledger agrees t the supprting dcumentatin and the bank statement. c. Prper recrding f classificatin, amunt, and perid per review f supprting dcumentatin and the general ledger. Perfrm this revenue wrk n the same accunting basis that the lcal public bdy keeps its accunting recrds n, cash basis, mdified accrual basis, r accrual basis. Findings fr Prcedures 4(a) 4(c) a. Analytical review and test f actual revenue cmpared t budgeted revenue fr the year fr each type f revenue revealed n exceptins. b. Amunts recrded n General Ledger generated thrugh QuickBks agreed with supprting dcumentatin and the bank statements. c. Amunts were prperly recrded n a cash basis as t classificatin, amunt and perid per review f dcumentatin. 4

8 Timthy Keller New Mexic State Auditr The Bard f Supervisrs ast Trrance Sil and Water Cnservatin District 5. XPNDITURS Prcedures Select a sample f cash disbursements and test transactins and test using the fllwing attributes: a. Determine that amunt recrded as disbursed agrees t adequate supprting dcumentatin. Verify that amunt, payee, date and descriptin agree t the vendr s invice, purchase rder, cntract and cancelled check, as apprpriate. b. Determine that disbursements were prperly authrized and apprved in cmpliance with the budget, legal requirements and established plicies and prcedures. c. Determine that the bid prcess (r request fr prpsal prcess if applicable), purchase rders, cntracts and agreements were prcessed in accrdance with the New Mexic Prcurement Cde (Sectin thrugh NMSA 1978) and State Purchasing Regulatins (1.4.1 NMAC) and Regulatins Gverning the Per Diem and Mileage Act ( NMAC). Findings fr Prcedures 5(a) 54(c) a. Amunts recrded as disbursed agree t adequate supprting dcumentatin. Amunt paid, payee, date and descriptin agreed with the vendr s invice, purchase rder, cntract and cancelled check, as apprpriate. b. Disbursements were prperly authrized, apprved and in cmpliance with budget, legal requirements and established plicies and prcedures. c. The bid prcess (r request fr prpsal prcess, if applicable), purchase rders, cntracts and agreements were prcessed in accrdance with the New Mexic Prcurement Cde (Sectin thrugh NMSA 1978) and State Purchasing Regulatins (1.4.1 NMAC) and Regulatins Gverning the Per Diem and Mileage Act ( NMAC). 5

9 Timthy Keller New Mexic State Auditr The Bard f Supervisrs ast Trrance Sil and Water Cnservatin District. JOURNAL NTRIS Prcedures If nn-rutine jurnal entries, such as adjustments r reclassificatins, are psted t the general ledger; test significant items fr the fllwing attributes: a. Jurnal entries appear reasnable and have supprting dcumentatin. b. The lcal public bdy has prcedures that require jurnal entries t be reviewed and there is evidence the reviews are being perfrmed. Findings fr Prcedures (a) (b) a. TSWCD utilizes QuickBks t recrd cash transactins nly and des nt prepare jurnal entries ther than t recrd interest n investments. N exceptins were nted. b. TSWCD des nt have a plicy regarding jurnal entries r their apprval prcess. 7. BUDGT Prcedures Obtain the riginal fiscal year budget and all budget amendments made thrughut the fiscal year and perfrm the fllwing: a. Verify, thrugh a review f the minutes and crrespndence, that the riginal budget and subsequent budget adjustment were apprved by the lcal public bdy s gverning bdy and DFA-LGD. b. Determine if the ttal actual expenditures exceeded the final budget at the legal level f budgetary cntrl; if s, reprt a cmpliance finding.

10 Timthy Keller New Mexic State Auditr The Bard f Supervisrs ast Trrance Sil and Water Cnservatin District c. Frm the riginal and final apprved budgets and general ledger, prepare a schedule f revenues and expenditures budget and actual n the budgetary basis used by the lcal public bdy (cash, accrual, r mdified accrual basis) fr each individual fund. Findings fr Prcedures 7(a) 7(c) a. A review f the minutes indicates that the riginal budget was apprved by TSWCD and the Department f Finance Administratin-Lcal Gvernment Divisin (DFA-LGD), as presented in the attached budget reprt. N subsequent budget adjustments were made. b. Ttal actual expenditures did nt exceed the final budget at the ttal fund level, the legal level f budgetary cntrl. c. A Schedule f Revenues and xpenditures Budget and Actual was prepared frm the TSWCD recrds n the Nn-GAAP Budgetary Basis. 8. OTHR Prcedures If infrmatin cmes t the IPA s attentin (regardless f materiality) indicating any fraud, illegal acts, nncmpliance, r any internal cntrl deficiencies, such instances must be disclsed in the reprt as required by Sectin 12---NMSA The findings must include the required cntent per Sectin (0(3) (C) NMAC. Findings fr Prcedure 8 N additinal infrmatin indicating any fraud, illegal acts, nncmpliance, r internal cntrl deficiencies came t the attentin f the auditr. I was nt engaged t, and did nt cnduct an audit, the bjective f which wuld be the expressin f an pinin n the accunting recrds. Accrdingly, I d nt express such an pinin. Had I perfrmed additinal prcedures, ther matters might have cme t my attentin that wuld have been reprted t yu. 7

11 Timthy Keller New Mexic State Auditr The Bard f Supervisrs ast Trrance Sil and Water Cnservatin District This reprt is intended slely fr the infrmatin and use f the ast Trrance Sil and Water Cnservatin District, the New Mexic Legislature, the New Mexic Office f the State Auditr and the Department f Finance and Administratin Lcal Gvernment Divisin and is nt intended t be and shuld nt be used by anyne ther than thse specified parties. Calhn Accunting & Tax Services Calhn Accunting & Tax Services stancia, New Mexic Octber 2, 201 8

12 STAT OF NW MXICO AST TORRANC SOIL AND WATR CONSRVATION DISTRICT Schedule f Revenues and xpenditures Budget and Actual (Nn-GAAP Cash Basis JUN 30, 201 Variances Favrable Budgeted Amunts (Unfavrable) Original Final Actual Final t Actual Revenues: Prperty Tax $ 123,000 $ 123,000 $ 128,732 $ 5,732 State alltments 14,000 14,000 14,74 74 Sales revenue - tree and seed sales 1,500 1,500 4,374 2,874 Reimbursements 7,050 7,050 5,831 (1,219) Interest incme Intergvernmental Grants - Federal 5,45 5,45 5,45 - Intergvernmental Grants - State 54,800 54,800 54,322 (478) Prject Incme 2,534 2,534 3, WTB Grant 25,875 25,875 15,444 (10,431) Ttal revenues 234, , ,038 (2,177) xpenditures: Advertisements 3,200 3,200 1,570 1,30 Audit expense 3,950 3,950-3,950 Building expense 4,300 4,300 4,403 (103) Cntract Labr 19,500 19,500 13,98 5,802 Cst share payments 221, , ,402 Dues 3,800 3,800 3,887 (87) Insurance bnd Mileage and per diem ,407 (907) Office expense,500,500 4,234 2,2 Payrll & benefits 9,780 9,780,591 3,189 Payrll taxes 7,000 7,000 4,437 2,53 Pstage 3,300 3,300 1,829 1,471 Special prject fees 224,93 224,93 23, ,105 Training, wrkshps & meetings 10,000 10,000,273 3,727 Tree cst 1,200 1,200 4,039 (2,839) Vehicle expense 3,000 3,000 2, WTB Grant 25,875 25,875 15,444 10,431 Ttal expenditures 08,418 08, , ,511 xcess (Deficiency) f revenues ver expenditures (374,203) (374,203) $ 78,131 $ - Budgeted cash carryver 374, ,453 Budgeted ending cash balance $ 250 $ 250 9

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14 STAT OF NW MXICO AST TORRANC SOIL AND WATR CONSRVATION DISTRICT Schedule f Findings and Respnses JUN 30, 201 Prir Year Findings Nne 11

15 STAT OF NW MXICO AST TORRANC SOIL AND WATR CONSRVATION DISTRICT xit Cnference JUN 30, 201 xit Cnference The reprt cntents were discussed at an exit cnference held n Octber 2, 201, with the fllwing in attendance: ast Trrance Sil and Water Cnservatin District Ryan Schwebach, Chairman Calhn Accunting & Tax Services Renea L. Calhn, CPA 12