|
ITEM: |
CONSENT
CALENDAR |
||||
|
|
|||||
|
6. |
REVIEW AND ACCEPT
INDEPENDENT AUDIT REPORT FOR FISCAL YEAR 2010-2011 |
||||
|
|
|||||
|
Meeting
Date: |
February 23, 2012 |
Budgeted: |
N/A |
||
|
|
|||||
|
From: |
David J.
Stoldt, |
Program/ |
N/A |
||
|
|
General
Manager |
Line Item No.: |
|||
|
|
|||||
|
Prepared
By: |
Suresh
Prasad |
Cost Estimate: |
N/A |
||
|
|
|||||
General Counsel Review: N/A |
|||||
Committee Recommendation: The Administrative Committee reviewed this item on February 13, 2012 and recommended approval. |
|||||
|
CEQA Compliance: N/A |
|||||
SUMMARY: Drafts of the Financial Statements and Independent Auditors’ Report (Report) and Board Communication Letter (required communication letter from the Auditors to the Board) for the fiscal year ending June 30, 2011 have been received from the District’s external auditors, Hayashi & Wayland. The documents are attached as Exhibit 6-A and Exhibit 6-B to this report and will also be posted on the District’s website after it has been approved by the Board. This was the second year of a three-year contract with Hayashi & Wayland to audit the District’s financial records.
The auditors have issued a clean opinion on the District’s financial statements. The statements show that revenues for the year totaled $7,579,607 and expenditures were $8,017,568, resulting in a deficit (use of reserves) of $437,961. This actual use of reserves compared to the budgeted deficit of $37,200 for funding the Aquifer Storage and Recovery (ASR) Project on a pay-as-you-go basis. The District’s net assets increased by approximately $441,232 during the year, largely due to capitalized expenditures for the work completed on the District’s ASR Project. The Administrative Committee met with representatives from Hayashi and Wayland and reviewed the Auditors’ Report and the Board Communication Letter at its February 13, 2012 meeting.
A Management Letter may be issued in conjunction with the Report to offer constructive suggestions for improvements on matters that came to the auditors’ attention in connection with the audit, however, such letter was not deemed necessary by Hayashi & Wayland in connection with the audit for this fiscal year.
RECOMMENDATION: District staff recommends that the Board review and accept the Financial Statements and Independent Auditors’ Report for the year ending June 30, 2011. The Administrative Committee reviewed draft report February 13, 2012 and voted 3 to 0 to recommend approval of the staff recommendation.
6-A Board Communication Letter
6-B Draft Financial Statements and Independent Auditors Report
U:\staff\Boardpacket\2012\20120223\ConsentCal\06\item6.docx