The following document was not prepared by the Office of the State Auditor, but was prepared by and submitted to the Office of the State Auditor by a

Transcription

1 The following document was not prepared by the Office of the State Auditor, but was prepared by and submitted to the Office of the State Auditor by a private CPA firm. The document was placed on this web page as it was submitted. The Office of the State Auditor assumes no responsibility for its content or for any errors located in the document. Any questions of accuracy or authenticity concerning this document should be submitted to the CPA firm that prepared the document. The name and address of the CPA firm appears in the document.

2 TOWN OF WALLS, MSSSSPP Financial Statement For the Year Ended September 30, 2012 RSOtfiVED MAR w 1 t t 1, t '\,, l \. J ~, t..,.

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4 TOWN OF WALLS, MSSSSPP TABLE OF CONTENTS ndependent Accountants' Compilation Report... 1 L Statement of Cash Receipts and Disbursements...4 Supplementary nformation... 6 Schedule of long-term Debt... 7 Schedule of Surety Bonds of Municipal Officials...8 'ȧ'. Special Reports...9 Special Report on Agreed-Upon Procedures for Small Towns R&;g;;fVED MAR f

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6 w (H}) Pl)( \«",,11,) NDEPENDENT ACCOUNTANTS' COMPLATON REPORT Honorable Mayor and Board of Aldermen Town of Walls Walls, Mississippi We have compiled the accompanying statement of cash receipts and disbursements of the Town of Walls, Mississippi for the year ended September 30, 2012, which collectively comprises the town's basic financial statement. We have not audited or reviewed the accompanying financial statement and, accordingly, do not express an opinion or provide any assurance about whether the financial statement is in accordance with the cash basis of accounting. The management of the Town of Walls, Mississippi is responsible for the preparation and fair presentation of the financial statement in accordance with the cash basis of accounting and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statement. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American nstitute of Certified Public Accountants. The obective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statement. The Mayor and Alderman have elected to omit substantially all of the disclosures required by accounting principles generally accepted in the United States of America. f the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the Town's cash receipts and disbursements. Accordingly, this financial statement is not designed for those who are not informed about such matters. Management has not presented government-wide financial statements to display the cash basis financial position and changes in cash basis financial position of its governmental activities and businesstype activities. Accounting principles generally accepted in the United States of America, as applied to the Town's cash basis of accounting, require the presentation of government-wide financial statements. The amounts that would be reported in government-wide financial statements resulting from the cash basis transactions for the Town's governmental activities and business-type ac~tiyti;\ar.~ P.Q.t~asonab'y determinable. ~r.:\;.,t: i Vt:.U MAR

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8 Management has omitted the management's discussion and analysis information that is required to be presented for purposes of additional analysis. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed the supplementary information and accordingly, we do not express an opinion or provide any assurance on such supplementary information. n accordance with the provisions of Section , Miss. Code Ann. {1972}, we have issued a report dated March 6, 2014, on the results of our agreed-upon procedures. 1J1~, PA i'fjjt., LLt Williams, Pitts & Beard, PLLC Hernando, Mississippi March 6,2014-2

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10 1 l THS PAGE NTENTONALLY LEFT BLANK R(;O~'VEE> MAR J L -3

11 TOWN OF WALLS, MSSSSPP Statement of Cash Receipts and Disbursements Governmental and Business-type Activities For the Year Ended September 30, 2012 With Comparative Totals For 2011 Governmental BUSiness-type Activities Activities General Revenue Receipts General property taxes $ 238,013 $ Penalties and interest on delinquent taxes Licenses and permits 40,430 Franchise fees - public utilities 22,492 ntergovernmental revenues General municipal aid 10,244 State shared revenues Sales tax 39,041 Enterprise Charges for services Sewer charges 412,377 Fines and forfeits 67,301 Miscellaneous nterest 2,090 Miscellaneous 35,173 Total Revenue Receipts 454, ,377 Other Receipts Federal/state grants received 18,869 Loans 30,000 Total Receipts 503, ,377 See independent accountants' compilation report. -4 Totals (Memorandum Only) $ 238,013 $ 211,844 40,430 32,585 22,492 22,735 " ' 10,244 1,427 39,041 35, , ,978 67,301 30,589 2, ,173 8, , ,900 18,869 20,475 30,000 50, , ,375

12 ,....,.. TOWN L OF WALLS, MSSSSPP Statement of Cash Receipts and Disbursements Governmental and Business type Activities For the Year Ended September 30, 2012 With Comparative Totals For 2011 Governmental Business-type Activities General Disbursements General government $ 216,828 $ Public safety 274,918 Enterprise Activities Enterprise Sanitation 15, ,718 Redemption of principal 20,012 Debt service interest 1,064 Total Disbursements 527, ,718 Excess (Deficiency) of receipts over disbursements (24,169) 254,659 Other Financing Sources (Uses) Capital outlay (913) Transfers 114,690 (114,690) Total Other Financing Sources (Uses) 113,777 (114,690), Excess (Deficiency) of receipts and other 8... financing sources over disbursements and other financing uses 89, ,969 Cash Basis Fund Balance Beginning of Year 90, ,903 Cash Basis Fund Balance End of Year $ 180,310 $ 275,872 Totals (Memorandum Only) $ 216,828 $ 147, , , , ,100 20,012 78,285 1,064 2, , , , ,636 (913) (1,126) (913) (1,126) 229, , ,605 93,095 $ 456,182 $ 226,605 RE6EVED MAR 1~ 20f~ l See independent accountants' compilation report. -5

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14 SUPPLEMENTARY NFORMATON -6

15 TOWN OF WALLS, MSSSSPP Schedule of Long-Term Debt For the Year Ended September 30, 2012 Balance Balance Definition Outstanding Transactions During Year Outstanding &Purpose Oct. 1, 2011 ssued Redeemed Sept. 30, 2012 First Security Bank Total Line of Credit 21,785 30,000 20,012 31,773 $ 21,785 $ 30,000 $ 20,012 $ 31,773 i See independent accountants' compilation report. -7-

16 L TOWN OF WALLS, MSSSSPP Schedule of Surety Bonds of Municipal Officials September 30, 2012 Name Position Surety Amount Lynda Austin Mayor MS Municipal Bond Program c/o Scott Municipal nsurance $ 50,000 Patricia Denison Alderman MS Municipal Bond Program c/o Scott Municipal nsurance 50,000 Robert Smith Alderman MS MuniCipal Bond Program c/o Scott Municipal nsurance 50,000 L. Z. Stafford Alderman MS Municipal Bond Program c/o Scott Municipal nsurance 50,000 Ray Denison Alderman MS Municipal Bond Program c/o Scott Municipal nsurance 50,000 James Doyle Sr. Alderman MS Municipal Bond Program c/o Scott Municipal nsurance 50,000 Betty Williams City Clerk Travelers 50,000 Betty Williams Court Clerk Travelers 50,000!' L Gary Boisseau Policeman Chief of Police Policeman Travelers Travelers 50,000 25,000 each RSOt:VED MAR 14,01~ See independent accountants' compilation report. -8

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18 SPECAL REPORTS.. ~. -9

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20 w \\ 1 ( ' ( \' ( 0 " \", SPECAL REPORT ON AGREED-UPON PROCEDURES FOR SMALL TOWNS Honorable Mayor and Board of Aldermen Town of Walls Walls, Mississippi We have applied certain agreed-upon procedures, as discussed below, to the accounting records of the Town of Walls, Mississippi, as of September 30, 2012, and for the year then ended, as required by the Office of the State Auditor, under the provisions of Section , Miss. Code Ann. (1972). The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. t is understood the report is solely for the use of the governing body of the Town of Walls, Mississippi, and the Office of the State Auditor and should not be used for any other purposes. Our procedures and findings are as follows: 1. We reconciled cash on deposit with the following banks to balances in the respective general ledger accounts and obtained confirmation of the related balances from the banks: Balance Per Bank Fund General ledger First Security Bank General $ 125,443 FUiOi'YEB First Security Bank Utility 275,872 MAR f First Security Bank Escrow 54,867 $ 456,182 Finding The municipality's bank reconciliations were not prepared for at least three months after receiving the monthly bank statements. Recommendation The town should establish control procedures to ensure banks are reconciled in a timely manner. Town's Response Reconciliations are now being done upon receipt of monthly bank statements, and all entries are matched up against debits and credits on software program. Reconciliations are caught up through January

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22 2. As of September 30, 2012, the Town held no investments, including certificates of deposits. 3. We performed the following procedures with respect to taxes on real and personal property (including motor vehicles) levied during the fiscal year: a. Trace levies to governing body minutes; b. Traced distribution of taxes collected to proper funds; and L c. Analyzed increase in taxes for most recent period for compliance with increase limitations of Section to , Miss. Code Ann. (1972). The distribution of taxes to funds was found to be in accordance with prescribed tax levies. Ad valorem tax collections were found to be within the limitations of Sections to , Miss. Code Ann. (1972). Finding Deposits relating to tax collections were not made in a timely manner. Taxes settled to the Town of Walls in November and December 2011 were each held for three weeks before a deposit was made to the bank. Taxes settled to the Town of Walls in August 2012 were not deposited into the bank for three months. Recommendation The town should establish control procedures to ensure all funds are deposited in a timely manner. Town's Response Deposits are currently made weekly and all funds received are recorded through Quick Books. 4. We obtained a statement of payments made by the Department of Finance and Administration to the municipality. Payments indicated were traced to deposit in the respective bank accounts and recorded in the general ledger without exception. Payments traced were as follows: Payment Pur[!ose Sales Tax Allocation Nuclear Plant Fire Protection Gasoline Tax Homestead Exemption Municipal Aid Receiving Fund Ledger Amount YSO/l!: General $ 38,996. ~.dvj:f) General 8,219 General 6, ~ General 3,178 General 216 General 11,716 $ 68,381-11

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24 5. We selected a sample of purchases made by the municipality during the fiscal year. Each sample item was evaluated for proper approval and compliance with purchasing requirements set forth in Title 31, Chapter 7, Miss. Code Ann. (1972), if applicable. The sample consisted of the following: Number of sample items 25 Total dollar value of sample $101, We found the municipality's purchasing procedures to be in agreement with the requirements of the above-mentioned sections except as follows: ~.. Finding The Town was unable to provide proper invoice documentation to support three items totaling $22, Recommendation The Town should establish internal control procedures to ensure they retain all applicable documentation for purchasing requirements. Town's Responses The town now has a procedure where the invoice is stapled to a copy of the check and placed in an updated filing system and any electronic bills are supported with documentation. The new board and clerk are also aware of the need to declare emergency purchases through proper documentation. Finding The Town of Walls was unable to provide docket for the month of December, As a result we were unable to trace disbursements totaling $12,604 from that time period to approval on a docket. Dockets were provided for all other months of the fiscal year. Recommendation Proper claims dockets should be maintained and all claims to be approved and paid should be placed on the dockets. Town's Response The town now maintains a proper claims docket and it is presented to the Board at each town meeting for approval. 6. We selected a sample of collection of fines and forfeitures and verified that the municipal court clerk had settled daily with the municipal clerk. We also selected a sample of state-imposed court assessments collected and determined that the municipal clerk had settled monthly with the Department of Finance and Administration. We found the municipality to be in agreement with the requirements of the above mentioned sections except as follows: -12

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26 Finding We calculated a shortage to the Department of Finance and Administration pertaining to the months of November 2011 and March, May, June, July, and September During these six months a total of $ was not remitted to the state due to miscalculations by the client. Recommendation The town should establish control procedures to ensure all funds settled by the court clerk to the state are calculated properly and issued to the state. Town's Response As funds are collected by the court clerk they are settled with the town clerk who then enters deposits into the QuickBooks program. 7. We have read the municipal compliance questionnaire completed by the municipality. The following responses to the questionnaire indicate noncompliance with state requirements. Finding The municipal clerk has not submitted to the board a monthly report of expenditures against each budget item for the preceding month and fiscal year to date and the unexpended balances of each budget item. Recommendation The municipality should ensure that the board receives the proper budgetary reports each month. Town's Responses The new municipal clerk will be instructed on presenting budgetary reports versus expenses each month to the Mayor and Board of Alderman. This audit period was under the direction of the former Mayor Gene Alday and the former town clerk, Margaret Still; both of which are no longer with the Town of Walls as of December n January 2012, Mayor Lynda Austin stepped in as Mayor as well as Betty Williams stepped in as town clerk. Because the above procedures do not constitute an audit in accordance with generally accepted auditing standards, we do not express an opinion on any of the specific accounts or classes of transactions referred to above. n connection with the procedures referred to above, no matters came to our attention that caused us to believe that the items specified in Paragraphs 1, 2 and 3 should be adusted. Had we performed additional procedures or had we conducted an audit of the financial statements in accordance with generally accepted auditing standards, matters might have come to our attention that would have been reported to you. This report should not be associated with the financial statements of the Town of Walls, Mississippi, for the year ended September 30, wji",,;, Mf~,LL( Williams, Pitts & Beard, PLLC R;OetVED Hernando, Mississippi MAR r ~ tlw, March 6,

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