HomeMy WebLinkAbout710415.tiff ANDERSON, HUNTER, THOMTE & KURTZ
CERTI FED PUBLIC ACCOUNTANTS
Greeley, Colorado
ROBERT R.ANOFRSON,C,P.A. June 11 , 1971
RUSSELL G.THOMTE,C.P.A.
CHARLES M.IUPTZ,C.P.A.
WILLARD W.HUNTER,JR.,C P.A.
DARWIN F.SCHWARTZ,C.P.A.
To the Board of County Commissioners of
Weld County, Colorado
Greeley, Colorado 80631
Gentlemen:
During the course of our recent special audit engagement to determine
the gross revenues at various dump sites operated by Weld County Landfill,
Inc . , we discovered certain areas of weaknesses in the internal control system
and accounting procedures presently being employed by that company. Should
Weld County continue to have Weld County Landfill, Inc , operate dump sites ,
we feel that these weaknesses need to be corrected and certain revisions made
in the sanitary landfill contract dated July 2 , 1969 to clarify the terms of the
contract and intentions of all parties concerned.
The primary problem area is the lack of internal controls employed at
the outlying dump sites (other than Evans Site #1) to control adequately cash
receipts , although the amounts received from these dump sites now appear to
be nominal. If the Commissioners feel it is necessary to have complete control
over these receipts , a more sophisticated system needs to be employed by Weld
County Landfill, Inc . There is a question, however, as to whether the mainte-
nance of such records is economically practical.
The language contained in paragraph #10 of the July 2 , 1969 contract
between Weld County, Colorado and Weld County Landfill, Inc . appears to be
somewhat confusing and in some instances may not follow the intentions of the
parties of the contract. The first item deals with the term "complete audit of
the books of Landfill. " A complete audit may be interpreted to mean verification
of cash balances , confirmation of accounts receivable , observation of the
taking of the physical inventory, if applicable , verification of property assets ,
confirmation of accounts and notes payable as well as other liabilities , and the
completion of financial statements presenting financial position and results of
operations . We feel that the only auditing necessary under the contract with
Weld County Landfill, Inc , is verification by a Certified Public Accountant of
the gross revenues derived from each dump site for a particular period of time .
The next question concerns the period of time covered by the contract.
It appears that each dump site can have a different period of operation commencing
at the time the dump is certified (which has been defined as the date when a
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71O415
To the Board of County Commissioners of
Weld County, Colorado
Page 2
June 11 , 1971
certificate of designation is issued) . We feel that the contract should provide
for the same "cut-off" date for all dump sites and should any dump site not be
operable during the entire period, then the guaranteed gross revenue for the
dump site applies only to the period of time that the site was operating.
The last matter which needs clarification is the reference to the term
"certified dump. " It is necessary for each dump site to be certified in
accordance with the State and County Health Department regulations but the
commencement of the operations (and coverage by the contract) may occur prior
to the official certification. The amount of work and, accordingly, the compen-
sation for such work prior to the commencement of the operations as a sanitary
landfill should be fully disclosed for both parties concerned. This will probably
vary from site to site depending upon the circumstances , A written agreement
or amendment to this contract seems appropriate to clarify the County's
obligation.
With the adoption of our recommendations regarding internal control and
improved accounting procedures and clarification of the terms of the sanitary
landfill contract, the County will be in a better position to administer the affairs
of solid waste disposal sites and facilities as provided by State law.
Very truly yours ,
ANDERSON, HUNTER , THOMTE & KURTZ
6i4I �
Robert R. Anderson
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RE PORT
on the
SPECIAL EXAMINATION
of
GROSS REVENUES OF WELD COUNTY LANDFILL, INC .
June 30, 1970
ANDERSON, HUNTER, THOMTE a KURTZ
CERTIFIED PUBLIC ACCOUNTANTS
To the Board of County Commissioners of
Weld County, Colorado
Greeley, Colorado
In accordance with your request, we have examined certain of the
accounting records of Weld County Landfill, Inc . , Evans , Colorado, for the
fiscal year ended June 30 , 1970 for the purpose of determining the amount
of gross revenue for each dump site operated by Weld County Landfill, Inc
Our examination was made in accordance with generally accepted auditing
standards , and accordingly included such tests of the accounting records
and such other auditing procedures as we considered necessary in the
circumstances .
We reviewed the daily traffic flow records which were maintained
for each dump site . We then were able to determine that the recorded receipts
on the daily cash reconciliation sheet agreed substantially with the traffic
flow record. The information on the daily cash reconciliation sheets was
then traced into the cash receipts journal maintained by Weld County Landfill,
Inc . The gross revenues recorded in the books of Weld County Landfill, Inc .
for each of the respective dump sites are as follows:
Site #1 - Evans , Colorado $ 94 , 871 . 12
Site #2 - Windsor, Colorado 1 ,597. 85
Site #3 - Mead , Colorado 338 . 64
Site #4 - Ault, Colorado 97 ,75
Due to the small amounts and volume at the Windsor, Mead and Ault
dump sites , strict cash controls beyond the traffic flow records were not main-
tained by the various dump supervisors . Different amounts are charged for
waste hauled in pickups ($ .75 to $ 2 .00) as well as other modes of transporta-
tion which are charged variable rates , and adequate internal control over the
exact amount of cash received from each and every unit is not maintained;
therefore , we do not express an opinion regarding the fairness with which
receipts at these locations are recorded.
In our opinion , the gross revenue derived from Site #1 located at Evans ,
Colorado in the amount of $ 94 ,871 . 12 for the fiscal year ended June 30 , 1970
is fairly stated .
Ri o 1 r7e dr i`4! _
ANDERSON, HUNTER, THOMTE & KURTZ
May 7 , 1971
Greeley, Colorado
ANDERSON, HUNTER, THOMTE a KURTZ
CERTIFIED PUBLIC ACCOUNTANTS
Greeley, Colorado
May 6 , 1971
ROBERT R.ANDERSON,C.P.A.
RUSSELL 0.TH0MTE,C.P.A. MAY 7 1971
CHARLES M.KURTZ,C.P.A.
W ILLARB W.HUNTER,.IR.,C.P.A.
DARWIN E ScHWARTZ,C.P.A.
Board of County Commissioners
Weld County, Colorado
Greeley, Colorado
RE: Special Audit of Gross Revenues of Weld County Landfill, Inc .
Gentlemen:
This letter is to confirm the tentative agreement between Anderson,
Hunter, Thomte & Kurtz , C .P.A. 's , and Weld County, Colorado, whereby we
will undertake a special audit to determine gross revenues collected by Weld
County Landfill, Inc . at the various dump sites located in Weld County for the
period from July 1 , 1969 to June 30 , 1970 . It is our understanding that this
audit and the subsequent report shall cover only the verification of gross revenues
of the dump sites operated by Weld County Landfill, Inc . and should not include
other auditing procedures normally employed in the determination of financial
position and results of operations. The verification of gross revenue is intended
to determine whether or not the provisions of the sanitary landfill contract dated
July 2 , 1969 between Weld County, Colorado and Weld County Landfill, Inc .
have been met.
This engagement is to be conducted separate and apart from the current
audit engagement of the various funds of Weld County, Colorado. Our fee for
this engagement will be based on the number of hours incurred by the audit staff
multiplied by our standard audit rates. After an initial review of the documents
and records maintained by Weld County Landfill, Inc. , we should be able to
estimate the amount of time which will be required to complete this audit. At
that time , we will review the anticipated range fee with Mr. Barton Buss , Chief
Accounting Officer, and, if desired, with you.
Should these conditions not be in agreement with your thinking, or you
have any questions regarding any of the above matters , please notify us .
Very truly,
ANDERSON, _HUNTER, THOMTE & KURTZ
Robert R. Anderson
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