STATE OF \EW ME,XCO wr.,. POJOAQUE VALLEY RRGATON DSTRCT FDEL A. BERNAL, PC CERTTFED PUBLC ACCOUNTANT ALBUQUERQUE, NEW MEXCO
l. Sae of New Mexico Pojoaque Valley rrigaion Disric Table of Conens June 30, 2012 Page Official Roser 1 ndependen Accounan's Repor on Applyirrg Agreed-Jpon Procedures Schedule of Revenue, Expenses, Budge and Acual Copy of he year-end financial repor submied o DFA-LGD Schedule of Findings and Recommendaions Exi Conference 2-5 6 7-8 9-14 15
Sae of New Mexico Pojoaque Valley lrrigaion Disric June 30, 2012 Board of Direcors Chairman Vice Presiden Secreary-Treasurer J. David Oriz Flavio Gurule Horace Roybal -l-
FmELA. BpnNAL, p.c. 1108,\L\',\1,\DO Nlj,,\l,BUQLR.QU, NM 87110 i Mr. Hecor H Balderas New Mexico Sae Audior and Members of he Board Pojoaque Valley rrigaion Disric Sana Fe, NM NDEPENDENT ACCOUNTANT' S REPORT ON APPLYNG AGREED-UPON PROCEDURES (so5) 256-0404 il,\x (so5) 256-0100 We have performed he procedures enumeraed below, which were agreed o by Pojoaque Valley lrrigaion Disric (PVD), for he year ended June 30,2012, solely o assis you wih respec o he Disric's compliance for a Tier 4 engagemen of Tier 4 of he Audi Ac (Secion 12-6-l NMSA 1978 eseq.). The procedures were agreed o by he Disric hrough he New Mexico Office of he Sae Audior. The Disric's managemen is responsible for he Disric's accouning records. This agreed-upon procedures engagemen was conduced in accordance wih aesaion sandards esablished by he American nsiue of Cerified Public Accounans. The sufficiency of hese procedures is solely he responsibiliy of hose paries specified in he repor. Consequenly, we make no represenaion regarding he suffrciency of he procedures described below, eiher for he purpose for which his repor has been requesed or for any oher purpose. Our procedures and Resuls are as follows: 1. Cash Procedures: a) Deermine wheher bank reconciliaions are being performed in a imely manner and wheher all bank and invesmen saemens for he fiscal year are complee and on-hand. b) Perform a random es of bank reconciliaions for accuracy. Also, race ending balances o he general ledger, supporing documenaion and he financial repors submiued o DFA-Local Governmen Division (DFA-LGD). c) Deermine wheher he local public body's financial insiuions have provided i wih he 50% of pledged collaeral on all uninsured deposis as required by Secion 6-10-17 NMSA 1978, NM Public Money Ac, if applicable. Resuls: a) Based on he documens supplied he operaing accoun reconciliaions were done in a imely manner and were complee and on-hand. The reconciliaion for he savings accoun was no compleed. b) Random es of operaing accoun bank reconciliaions revealed no excepions. Traced all ending balances o he general ledger, supporing documens and repors submied o DFA-LGD. However he general ledger and he supporing documens for he savings accoun do no mach. c) The Disric currenly has wo bank accouns. The oal amoun in hese accouns is $15,961. Under he FDC coverage limi of $250,000. See Findin g l2-l Cash Reconciliaion -2- ;
TNDEPENDENT ACCOUNTANT'S REPORT ON APPLYNG AGREED-UPON PROCEDURES (coninued) 2. Capial Asses: Procedures: Verify ha he local public body is perflorming a yearly invenory as required by Secion 12-6-10 NMSA 1978. Resuls: Capial Asses of he Disric include daa processing equipmen, furniure and fixures, and equipmen. The Disric does no have any infrasrucure. The Disric did no perform a yearly invenory and has no official lising of heir capial asses. Finding 10-2 Capial Asses 3. Revenue: denify he naure and amoun of revenue from sources by reviewing he budge, agreemens, rae schedules, and underlying documenaion. Procedures: a) Perlorm an analyical review; es acual revenue compared o budgeed revenue for he year for each ype ofrevenue. Selec a sample of revenues based on audior judgmen and es using he following aribues: b) Amoun recorded in he general ledger agrees o he supporing documenaion and he bank saemen. c) Proper recording of classificaion, amoun, and period per review of supporing documenaion and he general ledger. Perform his revenue work on he same accouning basis ha he local public body keeps is accouning records on, cash basis, modified accrual basis, or accrual basis. Resuls: a) Analyical review and es of he acual revenue cornpared o he budge for he year for each ype of revenue revealed he Disric received more revenue han hey budgeed for by $19,653. b) Tesed $25,947 of he oal revenue of $139,821. All he deposis esed, agreed o he supporing documenaion, bank saemens and he general ledger. c) All deposis were properly recorded in he general ledger. Finding 10-4 Miscoding of Gran Revenue (Resolved) 4. Expendiures Selec a sample of cash disbursemens based on audior judgmen and es using he following aribues: Procedures: a) Deermine ha amoun recorded as disbursed agrees o adequae supporing documenaion. Verify ha amoun, payee, dae and descripion agree o he vendor's invoice, purchase order, conrac and canceled check, as appropriae. -3-
NDEPENDENT ACCOUNTANT'S REPORT ON APPLYNG AGREED-UPON PROCEDURES (coninued) b) Deermine ha disbursemens were properly auhorized and approved in compliance wih he budge, legal requiremens and esablished policies and procedures. c) Deermine ha he bid process (or reques for proposal process if applicable), purchase orders, conracs and agreemens were processed in accordance wih he New Mexico procuremen Code (Secion l3-l-28 hrough l3-l-199 NMSA 1978) and Sae Purchasing Regulaions (1.4.1 NMAC) and Regulaions Governing he per Diem and Mileage Ac(2.42.2 NMAC). Resuls: a) There were a oal of 242 disbursemens for he year for a oal of $158,399. We sampled 8l iems ha oaled $101,485. All disbursemens samplei agreed o supporing documenaiois. All agreed o amoun, payee, dae, and descripion o he vendor's invoice, plrchase order, conraci and cancelled check, as appropriae. b) The disbursemens were properly auhorized and in compliance wih he budge, legal requiremens, and esablished policies and procedures. c) There was no need o go ou o bid all purchases were under he hreshold. 5. Journal Enries lf non-rouine journal enries, such as adjusmens or reclassificaions, are posed o he general ledger, a es significan iems for he following aribues: Procedures: a) Journal enries appear reasonable and have supporing documenaion. b) The local public body has procedures ha require journal enries o be reviewed and here is evidence he reviews are being performed. Resuls: a) n he curren fiscal year he Disric uilized journal enries o record payroll axes and oher rouine iems. b)' The Disric's local body does no have procedures in place o review journal enries. See Finding 10-3 Journal Enries 6. Budse Obain he original fiscal year budge and all budge amendmens made hroughou he fiscal year and perform he following: Procedures: a) Verify, hrough a review of he minues and correspondence, ha he original budge and subsequen budge adjusmens were approved by he local public body's governing body and DFA-LGD. b) Deermine if he oal acual expendiures exceeded he final budge a he legal level of budgeary conrol; if so, repor a compliance finding. c) From he original and final approved budges and general ledger, prepare a schedule of revenues and expendiures - budge and acual on he budgeary basis used by he local public body (cash, accrual or modified accrual basis) for each individual fund. -4-
NDEPENDENT ACCOUNTANT' S REPORT ON APPLYNG AGREED-UPON PROCEDURES (coninued) Resuls: a) Verified hrough he minues and correspondence ha he Disric's governing body and DFA-LGD. Albuquerque NM Febru ary 20, 2014 original budge was approved by he b) Toal acual expendiures exceeded he final budge a he oal fund level, he legal level of budgeary conrol. c) A schedule of revenues and expendiures o budge and acual was prepared from he DFA- LGD approved budge and he Disrics records on he cash budgeary basis, he basis used by he Disric revealed no excepions. See Findingl2-2 Budge Conrol of Expendiures Oher Procedures f informaion comes o he PA's aenion (regardless of maerialiy) indicaing any fraud, illegal acs, noncompliance, or any inernal conrol deficiencies, disclose in he repor as required by Secion, l2-6- 6 NMSA 1978. The findings mus include he required conen per Secion 2.2.2.10 0) (3) (C) NMAC. Findines As a resul of applying he procedures described above: a) The Disric did no have surey bonding for he Board Members. b) The Disric did no comply wih submiuing an Agreed Upon Procedures Repor by he due dae. See findings 05-01 Surey Bond and l0-1 SAO Reporing. We were no engaged o, and did no conduc an audi, he objecive of which would be he expression of an opinion, on he specified elemens, accouns, or iems. Accordingly, we do no express such an opinion. Had we performed addiional procedures, oher maers migh have come o our aenion ha would have been repored o you. This repor is inended solely for he informaion and use of he Sae of New Mexico, Pojoaque Valley rrigaion Disric's Managemen, Governing Board, and he New Mexico Sae Audior's Office, he Deparmen of Finance and Adminisraion-Local Govemmen Division, and he New Mexico Legislaure and is no inended o be and should no be used by anyone oher han hose specified paries. ; -5- ;
f Sae of New Mexico Bluewaer Waer and Saniaion Disric PropriearX Fund schedule of Revenues, Expenses Budge and Acual (non-gaap Budgeary Basis) Year ended June 30, 2012 T l. h L h ; Rel'enues: Waer and Sewer ncome NMFA Gran applying for Toal revenues Expenses: Engineering sudy for waer & sewer sysems Wase managemen Office supplies Audi and accouning nsurance Sewer sysem Mileage reimbursemen Training Waer sysem Dues & subscripions Taxes NSF checks & bank charges Legal fees Cusomer deposis Charges for Communiy Toal operaing expenses Excess revenues (loss) over expendiures see accompanying Agreed upon Procedures Repor Original Approved Budge $ 63,366 50,000 $ 23,366 - Final Approved - Budge % $ 205,954 $ 205,954 - -6-50,000 54,000 3 3,000 1,670 20,000 600 700 30,000 334 10,250 1,000 300 1,000 3,000 Acual $ 163,366 153,286 50,000 213,366 153,286 50,000 54,000 33,000 1,670 20,000 600 700 30,000 334 10,250 1,000 300 1,000 3,000 50,457 27,162 5,456 1,670 2l,81 8 2,176 1,082 40,382 390 5,5 19 554 523 50 4,610 Variance Favorable (Unfavorable) $ ( l o,o8o) (50,000) (60,080) 50,000 3,543 5,83 8 (5,456) (r,sr8) (1,576) (3 82) ( 10,3 82) (56) 4,731 446 (223) 950 (1,610) 161,849 44,005 (8,563) s ( 6,075)
l l T i i July 12, 2012. lsaac Monioya Firiirrrcial Coordinaor l..oca Governnren Division Deg. of Finance & Adnrinisi;-aion Baaan l',4emorial llldg., Suie 201 Sana Fe, Nl\4 87501 Dear ivl r. lv'lonoya: POJOAQUE VALLEY RRGATON DSTRCT 11 W GUTERREZ, BOX 351.1 SANTA FE, NEW MEXCO 875C6 PHON E: (s0s) 4ss-25e3 lhe following is he e.uarerry Financial Repor for he period ending June 30, 2012 July i, 20 L June 30, 2Cj.Z" rfcr-\! rbrrq -!.\..rir\\-l'--, fash Baiance n DDDn,rn n, r r \,,/ v l_u qij DgEr 9,673,00 Accfs -iec i\,,able 1,500.00 Fiegillai- i'rssssirleni:; 76,g;]1.51 ijla Assessmens *g,520 g0 Darn Repyr.nenf [xr;i -O rcjina ry Exp. Ca p;ia r\p pro ilria io n:; BUQSH sl3rus 3,70) [uqlsrl_qil-gse_ry AppRov[D BUPqE D l L\-L! rre\ re- U _L 1,350.00 76,64ii',.C0?3,6.+0.C0 3,700.00 1?,3C0.Oil 6,582.00 7 L,C7 3 00 D.l Alr-r.JT'\LFT Lf 3,08.00 Sr-ii:^ioal s73,100.0c EXPrN DTU RES ]/AR,ANCE TO DATE 5a la ries $50,,i00.00 $ 50,zloo.oo Salarie s (Dam -l-endcri 10.000.C0 3,4 BC,Cil i. 5?0 c0 PR;\ 4,500.c0 4.610.C0 < 10.00>, Payrail Taxes 6,O,r0.00 5,262 C0 778.00 ileci.o n 500.c0 42 5 CiO 75.00 Or-rice 5'rpplies 7 5A.CA :1,:i02,c0 <_142.Ci0> O iiir"e i-lip 200 {10 190.00 20_00 Pos;rge 600 c0 519.C0 < 19.00> -7- -0-2,4!?.00
;ui,i i J, 20i 2?CJOAQU ir RiGATO ri D S"TF.CT QUARTRLY FiNACAL RPOBT {CCNTi.JLT Di PACE 2 BUD6T C.{TTGORY A.P PROViD BU DG TT xpll'l DiTU R F( TO DATT,ARl.&l,jc i-r iiiies ja nioriai Bui lding lia in e nancf Bure au of Rscian"laicn o&,\cl SJC liureau *f Reclamaion O&},rr lr,lambe Dam Office Machine lra in. Audi Uiliies-Nambe Darn Mileage {Darn Tender) Nambe Dam Supplies Darn Repaymen Dich Maerials Jd *ei;-rs [xpense Tra in ing [xpens* llam TEnrJer Heip [xra-ordi na ry-, D*m [x p, 3, Z$C.il,} *00 il0 750.C0 5 2l.oil,io L1,g*s,c0 800-00 6,000.0s l-,900.00 3,700.00 500.00 1,C3fi"*uJ $il0.011,sc0.rls 3,700.s0 a. -u- -0-3,1"Srr.,3il 3&3.{)0 _ij- 15,12"5 _0* 11.g0*"0$ 923.0$ -*- 1..069.00 3,652.00-0- 3,7DCr.C)0 _il- 72$^*0 1?fi.Cil i1 U 3.30i)"ii* 4S"0* 17 lo 750.C0 5,375.()0 n -L'l- <123.0fi> 6,000^00 831.S0 48_00 500.00-0- -{}- 3 60"{}0 72"1-00 4ilO.{:j0 *:30.3J0.0G> TOTAL $ rrg,3rj,jo ii!{f,f-8l}.ss { $12,750.C0} lf you ha're afiy qr-rssi*ns, feel free r: c*il rr:e a 45s-2h.3:j F,VD Clffiq:e N{anagrr- -B-
juiy i J, 20i 2 PCjOAQU ir RiGr\TC 'i D s"f,il CT QU;lRrrRLY rinailcal RpoBT {ccnti.jlr Di PAGE 2 B U }6 T C.{TrGO RY A.P PROVil BUDGT rxpli'j DiTU R rc TO DATT,AR l.&,jc Liiriies ja nic r ia i Building u'ra ine na nce Bureau of Rscianraiorr 3, Z$C.S0.100 00 75C.OU 3,1"5rr.,],* 3&3.{)0 -ij- 4S.0* 17. (10 750.C0 O &,\il SJC Sureau of Reclamaion 0&l,rl lriambe Dam Office Machine Main. Audi Uiliies-Nambe Darn Mileage {Darn Ten,Jer} Nambe Dam Supplies Darrr Repaymenr Dich Maerials ly'leeing fxpense Tra in ing [xpens* Dam TEnrJer i-ieip [xra-ordinary Dam [xp. 2 3.10il,n0 11,800,C0 8C0_S0 6,000.0s 1.,900.00 3,700.00 500.00 1,,C3*"0* g]0.011,sc0.*s 3,700,fi0 -s- -0-15,1-25 "0' 11,90*.0) 923.C$ -*- 1..s69.00 3,652.00-0- 72$^*S 1?&.Cil 3,70{i.Cr0 -l- -{1- \J *q*,3gs^** 5, $7 5.U0-0- <123,0fi> 6,000^00 831.S0 48_00 500.00-0- -C]- 3 SC"{}0 72"1,00.*.{:j0 {30.3J0.0G} TOTAL $ :9,3s{J,}o fi 14?,fJ8$.SS < $ 2,7scl.os> if yau h;'re ary qr:rsricns, filel free r: c*il r:re a 455-?hg:J Cf-fiq:e ar:agrr' r,vln -B-
* PRJOR YEAR FNDNGS: 0-i-l Surey Bond l0-l SAO Reporing l0-z Capial Asses l0-3 Journal Enries l0-4 Miscoding of Gran Revenue CURRENT YEAR FNDNGS: 05-1 Surey Bond (Repeaed) Sae of New Mexico Pojoaque Valley rrigaion Disric Schedule of Findings and Responses June 30,2012 Condiion The Disric does no have bonding for Board Members. Repeaed Repeaed Repeaed Modified and Repeaed Resolved Crieria New Mexico Saues (Secion 73-10-10, NMSA 1978) requires a bond on each member of he Board of Direcors in he amoun of $3,000. Cause The Disric has no been able o find an insurance carrier ha can mee he bonding needs wihin a reasonable fee. Effec The Disric is no in compliance wih Sae Saue and here is an increased risk of loss for Board Members. Recommendaion Th. Dii" *y be able o find affordable coverage by consuling wih oher similar eniies. Alernaively, he Disric should consider increasing assessmens o cover he increased cos. The Disric should purchase he necessary bond in order o comply wih Sae Saue and preven furher audi findings relaing o bonding of Board Members. Eniv Response The Disric has aemped o obain affordable coverage, bu has been unable o do so. The Disric obained coverage on January 13,2014. -9-
i S-{O Reporing (Reoeaed) Sae of l[ew Mexico Pojoaque Vallel' rrigaion Disric Schedule of Findings and Responses-coninued June 30,2012 Condiion The Disric did no 1bmr1 is Tier 4 Agreed upon Procedures repor for he year ended June 30, 20 2by he due dae. li, T * Crieria The New Mexico Sae Audior Procedures repors be submied (d)) rules require ha Special Disric Tier 4 Agrees Upon by December ' of each year. (sao Rule z.z.z.g A (l) Cause The Disric was unable o submi he June 30,2a12, Tier 4 Agrees Upon procedures Repor because an audior was no reained unil Nove mber 20,2013 Effec The Disric is no in compliance wih he New Mexico Sae Audior Rules and Regulaions. Recommendaion The Disric needs o ensure ha all fuure audi repors are filed in a imely manner. Eniv Resoonse Concur he Board of Direcors is working on procedures o resolve finding and ge all fuure repors compleed in a imely manner. -10-
Sae of New Mexico Pojoaque Valley lrrigaion Disric Schedule of Findings and Responses-coninued June 30, zvn l0-l Capial Asses (Repeaed) Condiion The Disric does no mainain a hisorical lising of capial asses by ype and locaion, i.e.: buildings, furniure and fixures. Nor does he Disric ake and annual physical coun of is asses. Crieria Sound accouning and conrol procedures require ha deailed lisings of asses be mainained o properly accoun for and safeguard all he asses of he Dirri. (12-6-10 NMSA 1978). Cause No formal records of he capial asses were ever mainained. Effec Wihou he accouning and conrol procedures over he asses acquired, here is he possibiliy ha asses are no being accouned for properly on he financial records and here is he possibiliy ha asses could be misplaced, los or solen. Recommendaion All asses should be properly accouned for and should be documened on a schedule of propery, plan and equipmen. The deailed propery, plan and equipmen lising should be reconciled o he general ledger on a periodic basis. Eniv Response The Disric will become familiar wih Secion 12-6-10 so hey can come ino compliance on invenory and asse managemen maers. -l l-
T * l0-3 Sae of New Mexico Pojoaque valley lrrigaion Disric Schedule of Findings and Responses-coninued June 30, ZAD Condiion n he curren fiscal year he Disric did no perform any non-rouine journal enries. However, he Disric has no pu procedures in place for he r.ri.* "il"r*rr enries. Crieria Secion 12-6-3 B (4) NMSA 1978 and secion 2.2.2.16 NMAC 20ll Agreed Upon Procedures Tier 4 orine Audi Ac saes ha agencies shall have procedures in place o review journal enries, be reasonable and have sulporing documenaion. Cause The Disric was no aware hey had o have procedures in place o review he journal enries. Effec The Disric is no in compliance wih sae saues and he 2012 Agreed upon procedures Tier 4 of he Audi Ac. Recommendaion The Disric should pu procedures in place o review joumal enries. Eniy Response Concur he Disric will pu procedures in place o review journal enries. -12-
i f l2-1 Cash Reconciliaions Sae of New Mexico Pojoaque Valley lrrigaion Disric Schedule of Findings and Responses-coninued June 30, 2012 Condiion The Disric did no prepare bank reconciliaions for he savings accoun. Crieria Sound accouning and conrol procedures require ha he Disric mainain an accurae cash balance o properly accoun for all public money (20}6NMSA Secion 6-10-2). Cause Bank accouns were no reconciled or mainained. Effec Wihou he accouning and conrol procedures over he bank accouns, here is he possibiliy ha he cash is no being accouned for properly on he financial records and here is he possibiliy ha money could be misplaced, los or solen. Recommendaion All bank accouns should be properly reconciled in a imely manner and should be reconciled o he general ledger. Response Concur he Disric will pu procedures in place o perform reconciliaions in a imely manner of he savings accoun, and reconcile o he general ledger. -13-
Sae of hlew Mexico Pojoaque Valley lrrigaion Disric Schedule of Findings and Responses-coninued June 30, 2012 l2-2 Budge conrol of expendiures Condiion: The Disric overspen he budge in oal in he amoun oaling $12,750. (Secion 6-6-6; NMSA 1978): Crieria: The auhoriy by which he Disric can spend money is he Commission and DFA approved budge (Secion 6-6-6;NMSA 1973). Effec: Overspending of he budge is a violaion of applicable laws, regulaions and policies esablished by he Sae, Disric and DFA, which could impac fuure budge approvals. Cause: The Disric had exra ordinary dam expenses ha were no budgeed for. l n n Recommendaion: We recommend ha The Disric comply wih Sae Saues and work wihin he limis of heir budge. f necessary a budge adjusmen reques should be requesed on a imely basis prior o exceeding he budgeed expendiure. Agency Response: The Disric concurs wih he Audior's recormendaions and in he fuure will reques a budge adjusmen in a imely manner prior o he year end o eliminae his problem. -14-
Sae of New Mexico Pojoaque valey rrigaion Disric Exi Conference June 30, Z0lz Exi Conference An exi conference was held on February 2A,2Al4: Represening Pojoaque valley rrigaion Disric was: David Oriz, Chairman Flavio Gurule, Vice Chairman Represening he firm of Fidel A. Bernal, p.c. was: Fidel A. Bernal, CpA i il il -15-