HomeMy WebLinkAbout19,Draft Audit 2011Action Item # 19
Consideration of the Draft Audit
Reports for 2011
June 6, 2012
Background / History
• District is required to have its financial records audited each
year
— Two Reports
• Primary government only
• Electric and water utility operations
• Consolidated
• Primary government and the community facilities districts
— Auditors give an opinion as to whether the financial
statements fairly present District's financial position using
GAAP and GASB standards
• In October 2011, Board awarded the audit contract to
Moss -Adams
2
New Information
• The 2011 audit is now complete and ready to be presented
to the Board of Directors
• Julie Desimone, Partner of Moss -Adams will present the
results of the audit and the management letter which
includes recommendations
3
AGENDA
• Results of audit process
• Board communications
• SAS 115 communications
MOSS ADAMS LLP 1 5
RESULTS OF AUDIT PROCESS
• Auditor's Report - Unqualified opinion on
financial statements - what you want!
• Adjustments -
o Reclassification of work orders completed but not
closed to plant -in-service at December 31, 2011
o Reclassification of restricted investments from
non -current to current assets for external reporting
purposes
• Passed Adjustments -
o Entry to adjust depreciation expense for work
orders completed but not closed at year end
MOSS ADAMS LLP 1 6
RESULTS OF AUDIT PROCESS
• Did not identify any material weaknesses or
significant control deficiencies
• TDPUD staff - Accounting department was
prepared, helpful and knowledgeable
MOSS ADAMS LLP 1 7
• Auditor's Responsibility under GARS
• Planned scope and timing - We performed the
audit according to the planned scope and
timing communicated during planning
• Significant Accounting Policies
o No new accounting policies had an impact on the
financial statements
o No changes to existing policies
MOSS ADAMS LLP 1 8
• Accounting estimates - typical for industry
o Unbilled revenue
o Allowance for doubtful accounts
o Recovery periods for the cost of plant
o Other post -employment benefit obligations
MOSS ADAMS LLP 1 9
• Disagreements with Management - None
• Consultation with Other Accountants - None
• Difficulties Encountered in Performing the
Audit - None
• Independence - No situations or conditions
that arose that would impair in appearance or
fact
MOSS ADAMS LLP 1 10
SAS 115 COMMUNICATIONS
• Other matters
o Adjustments to customer accounts
o Review of large commercial bills
o Inventory cycle counts
o Work order close & documentation
MOSS ADAMS LLP 1 11
QUESTIONS, C
COMMENTS?
Fiscal Impact
There is no direct fiscal impact associated with this item
13
Recommendation
Accept the Audited Financial Reports for 2011
14