HomeMy WebLinkAbout20101524.tiff si&
BONDI & Co. LLC
44 INVERNESS DRIVE LAS I 2:3 -q303) 99cr67 NI
e N6 ov C I. 000,COLORADO 80112 CERTIFIED PUBLIC ACCOUNTANTS 'x(800) 5O 3 1OLT REe
MANAGEMENT CONSULTANTS
www.bondico.com i(3O3"79$)6926 I'AX
June 28, 2010
To the Board of Commissioners
Weld County
Greeley, Colorado
Dear Members of the Board:
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Weld County, Colorado for the year ended December
31, 2009, and have issued our report thereon dated June 14, 2010. Professional standards
require we provide you with the following information related to our audit.
Our Responsibilities under U.S. Generally Accepted Auditing Standards and OMB
Circular A-133
As stated in our engagement letter, dated October 9, 2007, our responsibility, as described by
professional standards, is to express opinions about whether the financial statements prepared
by management, with your oversight, are fairly presented, in all material respects, in
conformity with U.S. generally accepted accounting principles. Our audit of the financial
statements does not relieve you or management of your responsibilities.
In planning and performing our audit, we considered Weld County, Colorado's internal control
over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinions on the financial statements and not to provide assurance on the internal
control over financial reporting. We also considered internal control over compliance with
requirements that could have a direct and material effect on a major federal program in order
to determine our auditing procedures for the purpose of expressing our opinion on compliance
and to test and report on internal control over compliance in accordance with the U.S. Office
of Management and Budget (OMB) Circular A-133.
As part of obtaining reasonable assurance about whether Weld County, Colorado's financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grants, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit.
Also in accordance with OMB Circular A-133, we examined, on a test basis, evidence about
Weld County, Colorado's compliance with the types of compliance requirements described in
•
Cornmwa)ti -1-io11s � c 2010-1524
-1 t ,� io 1 - 114'1C FEC'CY5
Board of Commissioners
Weld County
Page 2
the OMB Circular A-133 Compliance Supplement applicable to each of its major federal
programs for the purpose of expressing an opinion on Weld County, Colorado's compliance
with those requirements. While our audit provides a reasonable basis for our opinion, it does
not provide a legal determination on Weld County, Colorado's compliance with those
requirements.
Planned Scope and Timing of the Audit
We performed the audit according to the planned scope communicated to you in our
engagement letter, dated October 9, 2007. We performed the audit according to the planned
timing previously discussed with Barbara Connolly via telephone.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. In
accordance with the terms of our engagement letter, we advised management about the
appropriateness of accounting policies and their application. The significant accounting
policies used by Weld County, Colorado are described in Note 1 to the financial statements.
No new accounting policies were adopted, and the application of existing policies was not
changed during the year ended December 31, 2009. We noted no transactions entered into by
Weld County, Colorado during the year for which there is a lack of authoritative guidance or
consensus. There are no significant transactions that have been recognized in the financial
statements in a different period than when the transaction occurred.
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive
because of their significance to the financial statements and because of the possibility that
future events affecting them may differ significantly from those expected. There were no
sensitive estimates affecting the financial statements during the year ended December 31, 2009.
The disclosures in the financial statements are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
Board of Commissioners
Weld County
Page 3
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate
level of management. The attached schedule includes material misstatements detected as a
result of audit procedures. Management has corrected all such misstatements.
Also attached is a schedule summarizing uncorrected misstatements of the financial statements.
Management has determined that their effects are immaterial, both individually and in the
aggregate, to the financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction,
that could be significant to the financial statements or the auditors' report. We are pleased to
report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the attached
management representation letter, dated June 14, 2010.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principle to the Weld County, Colorado's
financial statements or a determination of the type of auditors' opinion that may be expressed
on those statements, our professional standards require the consulting accountant to check with
us to determine that the consultant has all the relevant facts. To our knowledge, there were no
such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles
and auditing standards, with management each year prior to retention as Weld County,
Colorado's auditors. However, these discussions occurred in the normal course of our
professional relationship, and our responses were not a condition to our retention.
Board of Commissioners
Weld County
Page 4
This information is intended solely for your use and that of management of Weld County,
Colorado, and is not intended to be, and should not be, used by anyone other than these
specified parties.
Very truly yours,
4Lt4. at
BONDI& Co. LLc
Attachments
•
(Vic ce
Weld County Government
Accounting Department
P.O. Box 758
915 10th Street
C, Greeley, Colorado 80632
COLORADO
June 14, 2010
BONDI& Co. ac
44 Inverness Drive East, Bldg. B
Englewood, Colorado 80112
We are providing this letter in connection with your audits of the financial statements of Weld County, Colorado as
of December 31, 2009 and for the year then ended for the purpose of expressing opinions as to whether the
financial statements present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major fund, and
the aggregate remaining fund information of the Weld County, Colorado and the respective changes in financial
position and, where applicable, cash flows thereof in conformity with U.S. generally accepted accounting
principles. We confirm that we are responsible for the fair presentation of the previously mentioned financial
statements in conformity with U.S. generally accepted accounting principles. We are also responsible for adopting
sound accounting policies, establishing and maintaining effective internal control over financial reporting, and
preventing and detecting fraud.
We confirm, to the best of our knowledge and belief, as of June 14, 2010, the following representations made to
you during your audit.
1) The financial statements referred to above are fairly presented in conformity with U.S. generally accepted
accounting principles and include all properly classified funds and other financial information of the primary
government and all component units required by generally accepted accounting principles to be included in
the financial reporting entity.
2) We have made available to you all—
a) Financial records and related data and all audit or relevant monitoring reports, if any, received from
funding sources.
b) Minutes of the meetings of Board of County Commissioners or summaries of actions of recent meetings
for which minutes have not yet been prepared.
3) There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
4) There are no material transactions that have not been properly recorded in the accounting records underlying
the financial statements or the schedule of expenditures of federal awards.
5) We believe the effects of the uncorrected financial statement misstatements summarized in the attached
schedule, in the total amount of $3,257,112, are immaterial, both individually and in the aggregate, to the
financial statements for each opinion unit. We are also in agreement with the adjustments posted in the
amount of$1,401,722.
6) We acknowledge our responsibility for the design and implementation of programs and controls to prevent
and detect fraud.
7) We have no knowledge of any fraud or suspected fraud affecting the entity involving:
a) Management,
b) Employees who have significant roles in internal control, or
c) Others where the fraud could have a material effect on the financial statements.
8) We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in
communications from employees, former employees, analysts, regulators, or others.
9) We have taken timely and appropriate steps to remedy fraud, illegal acts, violations of provisions of contracts
or grant agreements, or abuse that you have reported to us.
10) We have a process to track the status of audit findings and recommendations.
11) We have identified to you any previous audits, attestation engagements, and other studies related to the audit
objectives and whether related recommendations have been implemented.
12) We have provided our views on reported findings, conclusions, and recommendations, as well as our planned
corrective actions, for the report.
13) The County has no plans or intentions that may materially affect the carrying value or classification of assets,
liabilities, or equity.
14) The following, if any, have been properly recorded or disclosed in the financial statements:
a) Related party transactions, including revenues, expenditures/expenses, loans, transfers, leasing
arrangements, and guarantees, and amounts receivable from or payable to related parties.
b) Guarantees, whether written or oral, under which the County is contingently liable.
c) All accounting estimates that could be material to the financial statements, including the key factors and
significant assumptions underlying those estimates and measurements. We believe the estimates and
measurements are reasonable in the circumstances, consistently applied, and adequately disclosed.
15) We are responsible for compliance with the laws, regulations, and provisions of contracts and grant
agreements applicable to us, including tax or debt limits and debt contracts; and we have identified and
disclosed to you all laws, regulations and provisions of contracts and grant agreements that we believe have
a direct and material effect on the determination of financial statement amounts or other financial data
significant to the audit objectives, including legal and contractual provisions for reporting specific activities in
separate funds.
16) There are no—
a) Violations or possible violations of budget ordinances, laws and regulations (including those pertaining to
adopting, approving, and amending budgets), provisions of contracts and grant agreements, tax or debt
limits, and any related debt covenants whose effects should be considered for disclosure in the financial
statements, or as a basis for recording a loss contingency, or for reporting on noncompliance.
b) Unasserted claims or assessments that our lawyer(s) has advised us are probable of assertion and must
be disclosed in accordance with generally accepted accounting principles (Statement of Financial
Accounting Standards No. 5).
c) Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by generally
accepted accounting principles (Statement of Financial Accounting Standards No. 5).
d) Reservations or designation of fund equity that were not properly authorized and approved.
17) The County has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets
nor has any asset been pledged as collateral.
18) The County has complied with all aspects of contractual agreements that would have a material effect on the
financial statements in the event of noncompliance.
19) We have followed all applicable laws and regulations in adopting, approving, and amending budgets.
20) The financial statements include all component units as well as joint ventures with an equity interest, and
properly disclose all other joint ventures and other related organizations.
21) The financial statements properly classify all funds and activities.
22) All funds that meet the quantitative criteria in GASB Statement Nos. 34 and 37 for presentation as major are
identified and presented as such and all other funds that are presented as major are particularly important to
financial statement users.
23) Net asset components (invested in capital assets, net of related debt; restricted: and unrestricted) and equity
amounts are properly classified and, if applicable, approved.
24) Provisions for uncollectible receivables have been properly identified and recorded.
25) Expenses have been appropriately classified in or allocated to functions and programs in the statement of
activities, and allocations have been made on a reasonable basis.
26) Revenues are appropriately classified in the statement of activities within program revenues, general
revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
27) Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported.
28) Deposits and investment securities are properly classified as to risk, and investments are properly valued.
29) Capital assets, including infrastructure assets, are properly capitalized, reported, and, if applicable,
depreciated.
30) The government meets the GASB-established requirements for accounting for eligible infrastructure assets
using the modified approach.
31) We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured
and presented within prescribed guidelines and the methods of measurement and presentation have not
changed from those used in the prior period. We have disclosed to you any significant assumptions and
interpretations underlying the measurement and presentation of the RSI.
32) With respect to federal award programs:
a) We are responsible for understanding and complying with and have complied with the requirements of
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, including
requirements relating to preparation of the schedule of expenditures of federal awards.
b) We have prepared the schedule of expenditures of federal awards in accordance with OMB Circular A-
133, and have identified and disclosed in the schedule expenditures made during the audit period for all
awards provided by federal agencies in the form of grants, federal cost-reimbursement contracts, loans,
loan guarantees, property (including donated surplus property), cooperative agreements, interest
subsidies, insurance, food commodities, direct appropriations, and other assistance. We have also
disclosed to you all American Reinvestment Recovery Act(ARRA) expenditures.
c) We acknowledge our responsibility for presenting the schedule of expenditures of federal awards (SEFA)
in accordance with the requirements of OMB Circular A-133 §310.b, and we believe the SEFA, including
its form and content, is fairly presented in accordance with the Circular. The methods of measurement
and presentation of the SEFA have not changed from those used in the prior period and we have
disclosed to you any significant assumptions and interpretations underlying the measurement and
presentation of the SEFA.
d) If the SEFA is not presented with the audited financial statements, we will make the audited financial
statements readily available to the intended users of the supplementary information no later than the date
we issue the supplementary information and the auditor's report thereon.
e) We have identified and disclosed to you all of our government programs and related activities subject to
OMB Circular A-133.
f) We are responsible for understanding and complying with, and have complied with in all material respects,
the requirements of laws, regulations, and the provisions of contracts and grant agreements related to
each of our federal programs and have identified and disclosed to you the requirements of laws,
regulations, and the provisions of contracts and grant agreements that are considered to have a direct
and material effect on each major program.
g) We are responsible for establishing and maintaining, and have established and maintained, effective
internal control over compliance requirements applicable to federal programs that provides reasonable
assurance that we are managing our federal awards in compliance with laws, regulations, and the
provisions of contracts and grant agreements that could have a material effect on our federal programs.
We believe the internal control system is adequate and is functioning as intended. Also, no changes have
been made in internal control over compliance or other factors to the date of this letter that might
significantly affect internal control, including any corrective action taken with regard to control deficiencies
reported in the schedule of findings and questioned costs.
h) We have made available to you all contracts and grant agreements (including amendments, if any) and
any other correspondence with federal agencies or pass-through entities relating to major federal
programs.
i) We have received no requests from a federal agency to audit one or more specific programs as a major
program.
j) We have complied, in all material respects, with the compliance requirements, including when applicable,
those set forth in the OMB Circular A-133 Compliance Supplement, relating to federal awards and have
identified and disclosed to you all amounts questioned and any known noncompliance with the
requirements of federal awards, including those resulting from other audits or program reviews.
k) We have disclosed any communications from grantors and pass-through entities concerning possible
noncompliance with the applicable compliance requirements, including communications received from the
end of the period covered by the compliance audit to the date of the auditors report.
I) We have disclosed to you the findings received and related corrective actions taken for previous audits,
attestation engagements, and internal or external monitoring that directly relate to the objectives of the
compliance audit, including findings received and corrective actions taken up to the date of the auditor's
report.
m) Amounts claimed or used for matching were determined in accordance with relevant guidelines in OMB
Circular A-87, Cost Principles for State, Local, and Tribal Governments, and OMB's Uniform
Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.
n) We have disclosed to you our interpretation of compliance requirements that may have varying
interpretations.
o) We have made available to you all documentation related to the compliance requirements, including
information related to federal program financial reports and claims for advances and reimbursements.
p) Federal program financial reports and claims for advances and reimbursements are supported by the
books and records from which the financial statements have been prepared.
q) We have charged costs to federal awards in accordance with applicable cost principles.
r) The copies of federal program financial reports provided you are true copies of the reports submitted, or
electronically transmitted, to the respective federal agency or pass-through entity, as applicable.
s) We are responsible for and have accurately prepared the summary schedule of prior audit findings to
include all findings required to be included by OMB Circular A-133 and we have provided you with all
information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-
through entities, including all management decisions.
t) We are responsible for and have accurately prepared the auditee section of the Data Collection Form as
required by OMB Circular A-13.
u) We are responsible for preparing and implementing a corrective action plan for each audit finding.
v) We have disclosed to you all contracts or other agreements with service organizations, and we have
disclosed to you all communications from the service organizations relating to noncompliance at the
service organizations.
33) No events, including instances of noncompliance, have occurred subsequent to the balance sheet date and
through the date of this letter that would require adjustment to or disclosure in the aforementioned financial
statements or in the schedule of findings and questioned costs.
Signed 1 /An. & Title CIA) /miter-
Getl'.feC.GC ���
'repared by WELD COUNTY 23500A
Adjusting Journal Entries Page 1
1eviewed by 06/15/10
Date
Account Net Income
Reference Type Number Description Debit Credit Effect V
AJE01 Adjusting 12/31/09
26-2611-60000-61120-5000 REGULAR SALARIES 2542.00
26-2611-60000-61380-5000 HEALTH INSURANCE 173.00
26-2611-60000-61400-5000 FICA TAXES 154.00
26-2611-60000-61420-5000 PERA I.00
26-2611-60000-61440-5000 RETIREMENT 181.00
26-2611-60000-61460-5000 MEDICARE 36.00
26-2611-60000-62340-5000 FOOD SUPPLIES 1,448.00
26-2611-60000-63050-5000 TRANSPORTATION 750.00
26-2611-60000-63620-5000 ELECTRIC 109.00
26-2611-60000-63710-5000 MEDICAL SERVICES 2,484.00
26-2611-60000-63730-5000 CONTRACT PAYMENTS 95.00
26-2611-60000-63740-5000 COUNSELING SERVICES 1,211.00
26-2611-60000-63790-5000 OTHER PROFESSIONAL SERVI 288.00
26-261 I-60000-63880-5000 REPAIR AND MAINTENANCE i 614.00
26-2611-60000-64000-5000 TRAINING 3,107.00
26-2611-60000-64010-5000 TRAINING AND TECHNICAL A 375.00
26-2611-60000-64100-5000 TUITION 871.00
26-2611-60100-68511-5000 ALLOCATED ADMINISTRATR 1,374.00
26-2600-00000-20110-0000 ACCOUNTS PAYABLE-ACCU 12,315.00
(12,315.00)
PBC entry provided after received final
TB
AJE02 Adjusting 12/31/09
26-2614-60000-61120-5000 REGULAR SALARIES 261.00
26-2614-60000-61380-5000 HEALTH INSURANCE 2.00
26-2614-60000-61400-5000 FICA TAXES 16.00
26-2614-60000-61440-5000 RETIREMENT 15.00
26-2614-60000-61460-5000 MEDICARE 4.00
26-2614-60000-63790-5000 OTHER PROFESSIONAL SERVI 144.00
26-2614-60000-64000-5000 TRAINING 1,554.00
26-2614-60000-64010-5000 TRAINING AND TECHNICAL A 187.00
26-2614-60000-64100-5000 TUITION 436.00
26-2614-60100-68511-5000 ALLOCATED ADMINISTRATI 140.00
26-2600-00000-20110-0000 ACCOUNTS PAYABLE-ACCU. 2,105.00
(2,105.00)
PBC entry provided after received final
TB
UE03 Adjusting 12/31/09
21-2100-42250-68510-4000 CONTRA ACCOUNT 7,675.00
21-2100-42410-68510-4000 CONTRA ACCOUNT 15,770.00
21-2100-42375-68510-4000 CONTRA ACCOUNT 3,044.00
21-2100-42365-68510-4000 CONTRA ACCOUNT 1,541.00
21-2100-42370-68510-4000 CONTRA ACCOUNT 725.00
21-2100-42380-68510-4000 CONTRA ACCOUNT 5,942.00
21-2100-42250-68510-4000 CONTRA ACCOUNT 4,103.00
21-2100-42610-68510-4000 CONTRA ACCOUNT 1,510.00
21-2100-42410-68510-4000 CONTRA ACCOUNT 14,956.00
21-2100-42375-68510-4000 CONTRA ACCOUNT 3,368.00
21-2100-42365-68510-4000 CONTRA ACCOUNT 592.00
21-2100-42370-68510-4000 CONTRA ACCOUNT 266.00
21-2100-42380-68510-4000 CONTRA ACCOUNT 629.00
21-2100-00000-13200-0000 DUE FROM EXTERNAL 60,121.00
•
•
'repared by WELD COUNTY 23500A
Adjusting Journal Entries Page 2
teviewed by 06/15/10
Date
Account Net Income
Reference Type Number Description Debit Credit Effect V
(60,121.00)
To adjust Fund 21 intcrfund account to BI
detail schedule
AJE04 Adjusting 12/31/09
21-2100-42115-43360-4000 REIMBURSEMENTS 263,903.00
21-2100-42415-43360-4000 REIMBURSEMENTS 66,651.00
21-2100-42410-43360-4000 REIMBURSEMENTS 400,000.00
21.2100-00000.13200-0000 DUE FROM EXTERNAL 730,554.00
21-2100-00000-13200-0000 DUE FROM EXTERNAL 91,533.00
21-2100-00000-24000-0000 DEFERRED REVENUES 91,533.00
21-2100-00000-24000-0000 DEFERRED REVENUES 318,538.00
21-2100-00000-I3200-0000 DUE FROM EXTERNAL 318,538.00
21-2100.00000-13200-0000 DUE FROM EXTERNAL 184,480.00
21-2100-42115-43360-4000 REIMBURSEMENTS 184,480.00
(546,074.00)
To adjsut fund 21 interfund to account B1
reconciliation
TOTAL 1,401,722.00 1,401,722.00 (620,615.00)
) ` 43
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