By Rebecca Dopp
Times-News Correspondent
Juab County was recently audited by Hawkins, Cloward and Simister, Certified Public Accountants, Inc. and Denton Alexander, CPA, and Jeremy Wilkey, CPA, came before the county commissioners to review the financial statements and discuss the findings that the county will have to rectify. The auditor's report expresses an unqualified opinion on these financial statements.
Alexander said that the county was one of the most fiscally conservative entities that they had dealt with. He said the county was conservative in their financing and managing of their expenditures.
"It's a very well run, well fiscally managed government organization," he said.
Some of the financial highlights for the county, as of the close of fiscal year on December 31, 2013, included:
• The government-wide assets of Juab County exceeded its liabilities by $254,882,372. Of this amount, $2,530,423 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors.
• The government's total net assets increased by $53,736.
• The County's governmental funds reported combined ending fund balances of $10,750,530, an increase of $1,172,048 over the prior year's ending fund balances. Governmental funds report capital outlay as expenditures.
• The Capital Projects Fund increased in equity from $2,244,094 to $2,294,860 at year end. The General Fund increased its available equity by $198,757. The Class B Road Fund decreased its available equity from $3,083,222 to $2,571,626.
Juab County's financial statements focus on both the County as a whole (government wide), and on the major individual funds. "Funds" are resources segregated for the purposes of implementing specific activities in accordance with special regulations, restrictions, or limitations.
There were no significant aspects in comparison to year ending 2012 and year ending 2013 in the budget of Juab County.
There were no significant changes in the County's financial position between 2012 and 2013 and no significant economic factors.
There was one significant change in funds for Juab County in 2013. The Municipal Building Authority was changed from an enterprise fund into two governmental funds, a capital projects fund and a debt service fund. This change was made to better reflect the fact that the Building Authority acts as a facilitator for other County entities rather than as a profit center.
In 2013, the County collected more money in property taxes than budgeted. The restaurant tax, the sales and use tax, and the sales tax monies were significantly lower than anticipated. Federal payment in lieu of taxes and geothermal leases were significantly higher than anticipated. The ambulance department did not apply for the EMS grant as anticipated. The weed department applied for and received more grants that was budgeted for.
The Clerk/Auditor department had a much larger than normal tax sale and spent over $12,000 for title searches for the properties. The Recorder and Attorney's offices did not spend all of their anticipated budgets for 2013. The Sheriff purchased 2 new vehicles at the end of 2013 which made him go over budget. The Six County Service Contracts for 2014 were paid in advance, thus making that budget over.
The audit disclosed no instances of noncompliance having financial statement significance. Immaterial instances of noncompliance were noted. Three significant deficiencies in internal control were noted in the audit of the financial statements.
Finding number 1: the auditors found in the testing of the Justice of the Peace's Office records, they noted in the credit items they selected for testing items that were missing documentation as to the reason for the reduction in the amount charged to the citation recipient. The recommendation was for the JP's office to implement processes to ensure documentation is obtained and kept on file as to reasons for each credit entered against amounts owed, and that such fine reduction be approved by a second person.
The second finding stated that during the review of the County's debt and fixed assets they noted the debt payments on several revenue bond obligations were incorrectly posted to expense accounts, rather than as debt service payments—to principal and interest. The recommendation was to ensure proper posting.
The third finding, the auditors found that during testing of federal and state grants that there are several County employees with individual responsibility for compliance with terms of funding contracts, but no one person or office with comprehensive responsibility for identifying these contracts and monitoring to ensure compliance issues are appropriately addressed. The recommendation was to designate a person or office to perform such an identification and monitoring function.
Immaterial instances of noncompliance included some findings that were similar to findings in the audit of the Special Service District #2. One was financial reports need to be prepared and reviewed at least quarterly. The other was appointing a records officer to work with the State Archives and complying with GRAMA.
Another issue said that fund expenditures should be limited to the amount in the final adopted budget. Some departments exceeded their budgets.
Another finding was the auditors noted that documentation was not retained for some citation fine reductions/reversals/voids in the Justice Court Office. Approval of a second person in that office was not obtained for such adjustments, which is also an internal control deficiency.
The fourth finding noted during the testing of property taxes, approved greenbelt applications were not on file for some of the greenbelt properties selected for testing.
All the findings will be looked at and fixed by the county.
Alexander thanked the commissioners for their time, the county employees for their help and time, and personally thanked Pat Ingram, county clerk, for all her help over the years. Ingram is not seeking reelection and this was her last audit with the county.
"It's been a joy," she said.
