HomeMy WebLinkAbout20193755.tiffJune 29, 2019
WELD COUNTY ACCOUNTING DEPARTMENT
1150 O STREET
P.O. BOX 758
GREELEY, CO 80632-0758
WEBSITE: www.co.weld.co.us
PHONE: (970) 336-7240
FAX: (970) 352-9019
Anderson & Whitney, P.C.
5801 W 11th St, #300
Greeley, CO 80634
This representation letter is provided in connection with your audit of the basic financial statements of
Weld County, Colorado (the County) as of and for the year ended December 31, 2018 for the purpose of
expressing an opinion on whether the financial statements are presented fairly, in all material respects, in
accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
We confirm to the best of our knowledge and belief, as of the date of this letter:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated
October 5, 2018, for the preparation and fair presentation of the financial statements referred to
above in accordance with U.S. GAAP.
2. We acknowledge our responsibility for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
3. We acknowledge our responsibility for the design, implementation, and maintenance of internal
control to prevent and detect fraud.
4. Significant assumptions used by us in making accounting estimates, including those measured at
fair value, are reasonable and reflect our judgment based on our knowledge and experience about
past and current events and our assumptions about conditions we expect to exist and courses of
action we expect to take.
5. We have identified for you all of our funds, governmental functions, and identifiable business -type
activities.
6. We have properly classified all funds and activities.
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2019-3755
7. We have properly determined and reported the major governmental and enterprise funds based on
the required quantitative criteria. We have determined the following fund to be major for public
interest reasons: Human Services Fund.
8. Related party transactions, including those with component units for which the County is
accountable, and jointly governed organizations in which the County participates, and interfund
transactions, including interfund accounts and advances receivable and payable, sale and purchase
transactions, interfund transfers, long-term loans, leasing arrangements, and guarantees, have been
recorded in accordance with U.S. GAAP.
9. All events subsequent to the date of the financial statements and for which U.S. GAAP requires
adjustment or disclosure have been adjusted or disclosed.
10. The effects of all known actual or possible litigation and claims have been accounted for and
disclosed in accordance with U.S. GAAP.
11. We acknowledge our responsibility for the selection and application of accounting policies. In that
regard, all accounting policies used by us during the year are deemed appropriate.
12. The following have been properly recorded and/or disclosed in the financial statements:
a. Net position and fund balance classifications.
b. Arrangements involving restrictions on cash balances.
c. The fair value of investments.
d. Amounts of contractual obligations for construction and purchase of real property or
equipment not included in the liabilities or encumbrances recorded on the books.
e. All significant estimates and material concentrations known to management which are
required to be disclosed.
f. The effect on the financial statements of GASB Statement No. 68, Accounting and
Financial Reporting for Pensions and GASB Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits other than Pensions.
g. Deposits and investment securities categories of risk.
13. We have no plans or intentions that may materially affect the carrying value or classification of
assets. In that regard:
a. The County has no significant amounts of idle property and equipment.
b. The County has no plans or intentions to discontinue the operations of any activities of
programs or to discontinue any significant operations.
c. No provision is considered necessary to reduce assets that have permanently declined in
value to their realizable values.
d. We have reviewed long-lived assets and certain identifiable intangibles to be held and used
for impairment whenever events or changes in circumstances have indicated that the
carrying amount of the assets might not be recoverable and have appropriately recorded the
adjustment.
14. We are responsible for making the accounting estimates included in the financial statements.
Those estimates reflect our judgement based on our knowledge and experience about past and
current events and our assumptions about conditions we expect to exist and courses of action we
expect to take. In that regard:
a. Adequate provisions have been made:
i. To reduce receivables to their estimated net collectable amounts.
ii. For risk retention, including uninsured losses or loss retentions (deductibles)
attributable to events occurring through December 31, 2018 and/or for expected
retroactive insurance premium adjustments applicable to periods through December
31, 2018.
iii. For pension obligations, postretirement benefits other than pensions, and deferred
compensation agreements attributable to employee services rendered through
December 31, 2018.
b. No provisions have been considered necessary:
i. To reduce obsolete, damaged, or excess inventories to their estimated net realizable
values.
ii. To reduce investments, intangibles, and other assets which have permanently
declined in value to their realizable values.
iii. For any material loss to be sustained in the fulfillment of, or from the inability to
fulfill, any service commitments.
iv. For any material loss to be sustained as a result of purchase commitments.
v. For environmental clean-up obligations.
vi. For closure and post -closure care costs associated with operation of a solid waste
landfill.
15. There are no unasserted claims or assessments that our lawyer has advised us are probable of
assertion and must be disclosed in accordance with Statement of Financial Accounting Standards
No. 5 and/or GASB Statement No. 10.
16. We have no direct or indirect, legal or moral obligation for any debt of any organization, public or
private, that is not disclosed in the financial statements.
17. We have complied with all aspects of contractual agreements that would have a material effect on
the financial statements in the event of noncompliance.
18. Net positions (net investment in capital assets; restricted; and unrestricted) and fund balances are
properly classified and, when applicable, approved.
19. Expenses or expenditures 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.
20. Revenues are appropriately classified in the statements of activities within program revenues and
general revenues.
21. Capital assets, including infrastructure assets, are properly capitalized, reported, and depreciated.
22. We agree with the findings of specialists in evaluating the Weld County Retirement Plan actuarial
valuation, the workers' compensation claims incurred but not reported (IBNR), the Colorado
Counties Casualty and Property Pool claims IBNR, and the valuation of investments, and have
adequately considered the qualifications of the specialists in determining the amounts and
disclosures used in the financial statements and underling accounting records. We did not give or
cause any instructions to be given to the specialists with respect to the values or amounts derived
in an attempt to bias their work, and we are not otherwise aware of any matters that have had an
impact on the independence or objectivity of the specialists.
23. We have informed you of all uncorrected misstatements.
Information Provided
24. We have provided you with:
a. Access to all information, of which we are aware that is relevant to the preparation and fair
presentation of the financial statements such as records, documentation, and other matters.
b. Additional information that you have requested from us for the purpose of the audit.
c. Unrestricted access to persons within the entity from whom you determined it necessary to
obtain audit evidence.
d. Minutes of the meetings of the governing board and committees or summaries of actions of
recent meetings for which minutes have not yet been prepared.
25. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
26. We have disclosed to you the results of our assessment of risk that the financial statements may be
materially misstated as a result of fraud.
27. We have no knowledge of allegations of fraud or suspected fraud, affecting the County's financial
statements involving:
a. Management.
b. Employees who have significant roles in the internal control.
c. Others where the fraud could have a material effect on the financial statements.
28. We have no knowledge of any allegations of fraud or suspected fraud affecting the County's
financial statements received in communications from elected officials, employees, former
employees, or others.
29. We have no knowledge of any allegations or suspected noncompliance with laws and regulations
whose effects were considered when preparing financial statements.
30. We have disclosed to you all known actual or possible litigation and claims whose effects were
considered when preparing financial statements.
31. We have disclosed to you the identity of the County's related parties and all the related -party
relationships and transactions of which we are aware.
32. We have informed you of all significant deficiencies, including material weaknesses, if any, in the
design or operation of internal controls that could adversely affect the County's ability to record,
process, summarize, and report financial data.
33. We are aware of no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
Supplementary Information
34. With respect to supplementary information presented in relation to the financial statements as a
whole:
a. We acknowledge our responsibility for the presentation of such information.
b. We believe such information, including its form and content, is fairly presented in
accordance with U.S. GAAP and with Title 2 U.S. Code of Federal Regulations, Part 200.
c. The methods of measurement or presentation have not changed from those used in the
prior period.
d. There are no significant assumptions or interpretations regarding the measurement or
presentation of such information.
35. With respect to the management's discussion and analysis, schedules of pension information and
employer contributions, the condition assessments of infrastructure and the budgetary comparison
schedules presented as required by the Governmental Accounting Standards Board to supplement
the basic financial statements:
a. We acknowledge our responsibility for the presentation of such required supplementary
information.
b. We believe such required supplementary information is measured and presented in
accordance with U.S. GAAP.
c. We have disclosed to you any significant assumptions and interpretations underlying the
measurement and presentation of the required supplementary information.
Compliance Considerations
36. In connection with your audit of federal awards conducted in accordance with Government
Auditing Standards and Subpart F of Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance), we confirm:
a. We are responsible for complying, and have complied with the requirements of Title 2
U.S. Code of Federal Regulations, Part 200.
b. We are responsible for understanding and complying with the requirements of laws,
regulations, and the provisions of contracts and grant agreements related to each of its
federal programs.
c. We are responsible for establishing and maintaining, and have established and maintained,
effective internal control over compliance for federal programs that provides reasonable
assurance that the County is managing federal awards in compliance with laws,
regulations, and the provisions of contracts or grant agreements that could have a material
effect on its federal programs.
d. We have prepared the schedule of expenditures of federal awards in accordance with
Uniform Guidance and have included expenditures made during the period being audited
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.
e. We have identified and disclosed all of its government programs and related activities
subject to the Uniform Guidance compliance audit.
f. We have identified and disclosed to the auditor the requirements of federal statutes,
regulations, and the terms and conditions of federal awards that are considered to have a
direct and material effect on each major program.
g. We have made available all federal awards (including amendments, if any) and any other
correspondence relevant to federal programs and related activities that have taken place
with federal agencies or pass -through entities.
h. We have identified and disclosed to the auditor all amounts questioned and all known
noncompliance with the direct and material compliance requirements of federal awards or
stated that there was not such noncompliance.
i. We believe that the County has complied with the direct and material compliance
requirements (except for noncompliance it has disclosed to the auditor).
j. We have made available all documentation related to compliance with the direct and
material compliance requirements, including information related to federal program
financial reports and claims for advances and reimbursements.
k. We have provided to the auditor its interpretations of any compliance requirements that are
subject to varying interpretations.
1. We have disclosed to the auditor any communications from federal awarding agencies and
pass -through entities concerning possible noncompliance with the direct and material
compliance requirements, including communications received from the end of the period
covered by the compliance audit to the date of the auditor's report.
m. We have disclosed to the auditor 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 from the end of the period covered by the compliance audit to the
date of the auditor's report.
n. We are responsible for taking corrective action on audit findings of the compliance audit
and have developed a corrective action plan that meets the requirements of the Uniform
Guidance
o. We have provided the auditor 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.
p. We have disclosed the nature of any subsequent events that provide additional evidence
with respect to conditions that existed at the end of the reporting period that affect
noncompliance during the reporting period.
q. We have disclosed all known noncompliance with direct and material compliance
requirements occurring subsequent to the period covered by the auditor's report or stated
that there were no such known instances.
r. We have disclosed whether any changes in internal control over compliance or other
factors that might significantly affect internal control, including any corrective action taken
by management with regard to significant deficiencies and material weaknesses in internal
control over compliance, have occurred subsequent to the period covered by the auditor's
report.
s. Federal program financial reports and claims for advances and reimbursements are
supported by the books and records from which the basic financial statements have been
prepared.
t. The copies of federal program financial reports provided to the auditor are true copies of
the reports submitted, or electronically transmitted, to the federal agency or pass -through
entity, as applicable.
u. If applicable, we have monitored subrecipients to determine that they have expended pass -
through assistance in accordance with applicable laws and regulations and the terms and
conditions of the subaward and have met the other pass -through entity requirements of the
Uniform Guidance.
v. If applicable, we have issued management decisions for audit findings that relate to federal
awards it makes to subrecipients and that such management decisions are issued within six
months of acceptance of the audit report by the FAC. Additionally, We have followed up
to ensure that the subrecipient takes timely and appropriate action on all deficiencies
detected through audits, on -site reviews and other means that pertain to the federal award
provided to the subrecipient from the pass -through entity.
w. If applicable, we have considered the results of subrecipient monitoring and audits, and has
made any necessary adjustments to the County's own books and records.
x. We have charged costs to federal awards in accordance with applicable cost principles.
y. We are responsible for, and have accurately prepared, the summary schedule of prior audit
findings to include all findings required to be included by Uniform Guidance.
z. The reporting package does not contain protected personally identifiable information.
aa. We have accurately completed the appropriate sections of the data collection form.
Donald Warden, Director Finance & Administration
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