DISTRICT WATER CONSERVATION SOIL JACKSON … rpts/2016... · balance sheet - governmental funds ......
Transcript of DISTRICT WATER CONSERVATION SOIL JACKSON … rpts/2016... · balance sheet - governmental funds ......
Jackson Soil & Water Conservation DistrictBoard of Supervisors
Mack GlassGreg Hall
Tom StadsklevSteve BasfordB.E. Davis, Jr.
TABLE OF CONTENTS
INDEPENDENT AUDITOR'S REPORT
FINANCIAL STATEMENTS
STATEMENT OF NET POSITION
STATEM ENT OF ACTIVITIES
BALANCE SHEET - GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - GOVERNMENTAL FUNDS
RECONCILATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
NOTES TO THE FINANCIAL STATEMENTS
INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE WITH SECTION
218.415, FLORIDA STATUTES, LOCAL GOVERNMENT INVESTMENT POLICIES
INDEPENDENT AUDITOR'S REPORT REQUIRED BYG OVERN MENTAL AU DITI NG STANDARDS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE W ITH G OV ER N MENT AU D I T I N G SIANDARDS
SCHEDULE OF FINDINGS
INDEPENDENT AUDITORS REPORT TO MANAGEMENT REQUIRED
BY THE STATE OF FLORIDA
RESPONSE TO AUDIT FINDINGS
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GnnusrnY, Cr\Tx æ Covrpe¡rv,P.A.CEnrrrrro PusLrc Accoururnrurs
OwEN W. Gnrvsr-¡v, C.P.A.
DAIE L. CAVIN, C.P.A,
MEMBERS
FLoRtDA lNsnrurE AND
Ave nlcnru lNs¡turE oF
CrnTl¡rro PuBLtc AccouNlANTs
INDEPENDENT AUDITOR'S REPORT
Board of DirectorsJackson Soil and Water Conservation DistrictMarianna, Florida
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities and majorfund of Jackson Soil and Water Conservation District as of and for the year ended September 30,2016, and the related notes to the financial statements, which collectively comprise the JacksonSoil and Water Conservation District's basic financial statements as listed in the table of contents.
Management's Responsib ility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statementsin accordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to thepreparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error.
Au d itor's Re s pon si bi I ity
Our responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of risks of material misstatement of the financial statements,whether due to fraud or error. ln making those risk assessments, the auditor considers internalcontrol relevant to the entity's preparation and fair presentation of the financial statements in orderto design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entity's internal control. Accordingly, we expressno such opinion. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of significant accounting estimates made by management, as wellas evaluating the overall presentation of the financial statements.
Post Office Box220 o 4243 Lafayette Street o Marianna, Florida 32447-0220 o 850-526-3910 ¡ FAX 850-482-6019
Jackson Soil and Water Conservation DistrictPage 2
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
Opinions
ln our opinion, the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities and major fund of Jackson Soil andWater Conservation District as of September 30,2016, and the respective changes in financialposition for the year then ended in accordance with accounting principles generally accepted inthe United States of America.
Other Matters
Requ ired Su pplementary I nformation
Management has omitted the Management Discussion and Analysis and budgetary comparisoninformation that accounting principles generally accepted in the United States of America requireto be presented to supplement the basic financial statements. Such missing information, althoughnot a part of the basic financial statements, is required by the Governmental AccountingStandards board who considers it to be an essential part of financial reporting for placing the basicfinancial statements in an appropriate operational, economic, or historical context. Our opinionon the basic financial statements is not affected by this missing information.
Other Reporting Required by Government Auditing Standards
ln accordance with Government Auditing Standards, we have also issued our report dated June20, 2017 on our consideration of the Jackson Soil and Water Conservation District's internalcontrol over financial reporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters. The purpose of that report is todescribe the scope of our testing of internal control over financial reporting and compliance andthe results of that testing, and not to provide an opinion on internal control over financial reportingor on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering Jackson Soil and Water Conservation District'sinternal control over financial reporting and compliance.
çtifirsb, Cavin {e Conpøn1
Marianna, FloridaJune 20,2017
Grimsley, Cavin & Company, P.ACertified Public Accountants
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Jackson Soil & Water Conservation DistrictStatement of Net Position
September 30, 2016
ASSETSCashRestricted Assets - CashAccounts Receivable
TotalAssets
LIABILITIESAccounts Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailble Revenue
NET POSITIONUnrestricted
Total Net Position
The notes to the financial statements are an integral part of this statement
GovernmentalActivities
$ 85,05323,90942,226
151 188
42 79442 794
19,632
88 762$ 88,762
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Jackson Soil & Water Conservation DistrictStatement of Activities
For the Year Ending September 30, 2016
ExpensesCharges for
Services
OperatingGrants and
Contributions
Program Revenues
Net (Expense)Revenue andChanges inNet Position
GovernmentalActivities
Functions/ProqramsGovernmental ActivitiesGeneral Government $ 740,902 $ $ 773,107 $ 32,205
Total governmental activities $__fA9ß92 $
General Revenues:Miscellaneous
Total General RevenuesChanges in Net Position
Net Position - beginningNet Position - ending
The notes to the financial statements are an integral part of this statement
s 773.107 32,205
917917
33,12255 640
s 8a76?
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Jackson Soil & Water Conservation DistrictBalance Sheet
Governmental FundsSeptember 30,2016
ASSETSCashRestricted Assets:
Cash
Accounts Receivable
TotalAssets
LIABILITIESAccounts Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCESUnavailble Revenue
FUND BALANCESUnassignedTotal Fund Balances
$ 85,053 $ 85,053
23,909 23,909
42,226
$_____ilfl_J_88 $_____lflJ€e
$ 42,794 $ 42,79442 794 42 794
19 632 19 632
88 762 88 762B8 762 88 762
GeneralFund
42 226
TotalGovernmental
Funds
Total Liabilities & Fund Balances $ 151 .188 $ 151.188
Note: There are no reconciling items between the Balance Sheet and the Statement ofNet Position.
The notes to the financial statements are an integral part of this statement
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Jackson Soil and Water Conservation DistrictStatement of Revenues, Expenditures and Changes in Fund Balances
Governmental FundsFor the year Ended September 30, 2016
REVENUESlnte rg overnmenta I Reve nuesContributions and DonationsMiscellaneous
Total Revenues
EXPENDITURESCurrent:General Government
Total Expenditures
Excess (deficiency) ofrevenue over expenditures
Net Change inFund Balances
Fund Balances - beginningFund Balances - ending
The notes to the financial statements are an integral part of this statement.
GeneralFund
$ 679,146 $93,961
917
TotalGovernmental
Funds
679,14693,961
917774 024 774,024
740,727740,727
740,727740,727
33,297 33,297
33,29755,465
$ 88,762
33,29755,465
$ 88,762
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Jackson Soil & Water Conservation DistrictReconciliation of the Statement of Revenues, Expenditures,
And Changes in Fund Balances of Governmental FundsTo the Statement of Activities
For the Year Ended September 30, 2016
Net Change in fund balances - total government funds
Amounts reported for governmental activities in thestatement of activities are different because:
Governmental funds report capital outlays as expendituresHowever, in the statement of activities the cost of thoseassets, is allocated over their estimated useful lives andreported as depreciation expense. This is the amountby which depreciation $175 exceeded capital outlay $0in the current period.
Changes in net position of governmental activities
The notes to the financial statements are an integral part of this statement.
$ 33,297
175
$ 33,122
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Jackson Soil and Water Conservation DistrictNotes to Financial Statements
September 30, 2016
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
lntroduction
The basic financial statements of the Jackson Soil and Water Conservation District (the"District") are prepared in accordance with generally accepted accounting principles(GAAP). The District's reporting entity applies all relevant Governmental AccountingStandards Board (GASB) pronouncements.
The accounting and reporting framework and the more significant accounting principles andpractices are discussed in subsequent sections of this Note. The remainder of the Notesare organized to provide explanations, including required disclosures, of the District'sfinancial activities for the fiscal year ended September 30, 2016.
Reportinq Entitv
The Jackson Soil and Water Conservation District was established July 20, 1987 as anindependent special district in accordance with the provisions of the Soil and WaterConservation Law, Chapter 582, Florida Statutes, enacted by the Florida Legislature in
1937. The District's purpose is to provide assistance to private landowners, as well as local,state and federal agencies to solve problems related to soil and water resources. TheDistrict is governed by a five-seat board of supervisors who are elected in the generalelections of Jackson County.
Government-wide Financial Statements
The government-wide financial statements include the statement of net position and thestatement of activities. These statements report financial information for the Jackson Soiland Water Conservation District as a whole excluding fiduciary activities. lndividual fundsare not displayed but the statements distinguish governmental activities, generallysupported by taxes and general revenues, from business-type activities, generally financedin whole or in part with fees charged to external customers.
The statement of activities reports the expenses of a given function offset by programrevenues directly connected with the functional program. A function is an assembly ofsimilar activities and may include portions of a fund or summarize more than one fund tocapture the expenses and program revenues associated with a distinct functional activity.Program revenues include operating grants and contributions, which finance annualoperating activities including restricted investment income. These revenues are subject toexternally imposed restrictions to those program uses. Taxes and other revenue sourcesnot properly included with program revenues are reported as general revenues. Theserevenues are subject to externally imposed restrictions to those program uses. Taxes andother revenue sources not properly included with program revenues are reported as generalrevenues.
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Jackson Soil and Water Conservation DistrictNotes to Financial Statements
September 30, 2016
NOTE 1 _ SIGNIFICANT ACCOUNTING POLICIES Cont'd(
Fund Financial Statements
Fund financial statements are provided for the governmental funds. Major individualgovernmental funds are reported in separate columns in the fund financial statements.
Basis of Accountinq
The government-wide statements report using the economic resources measurement focusand the accrual basis of accounting generally including the reclassification or elimination ofinternal activity (between or within funds). Revenues are recorded when earned andexpenses are recorded when a liability is incurred, regardless of the timing of related cashflows. Grants and similar items are recognized as revenue as soon as all eligibilityrequirements imposed by the provider have been met.
Governmental fund financial statements report using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognizedwhen they are both measurable and available. Available means collectible within the currentperiod or as soon enough thereafter to pay current liabilities. Jackson Soil and WaterConservation District considers revenues to be available if they are collected within 60 daysof the end of the fiscal year. Expenditures are recorded when the related fund liabilities areincurred, as under accrual accounting.
Grants and interest associated with the current fiscal period are all considered susceptibleto accrual and so have been recognized as revenues of the current fiscal period. All otherrevenue items are considered measurable and available only when Jackson Soil and WaterConservation District receives cash.
When both restricted and unrestricted resources are available for use, it is the District'spolicy to use restricted resources first, and then unrestricted resources as needed.
The District uses funds to maintain its financial records during the year. A fund is definedas a fiscal and accounting entity with a self-balancing set of accounts. The District only usesgovernmental funds.
Governmental Funds
Governmental funds are those through which most governmental functions typically arefinanced. Governmental funds reporting focuses on the sources, uses and balances ofcurrent financial resources. Expendable assets are assigned to the various governmentalfunds according to the purpose for which they may or must be used. Current liabilities areassigned to the fund from which they will be paid. The difference between governmentalfund assets and liabilities is reported as fund balance.
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Jackson Soil and Water Conservation DistrictNotes to Financial Statements
September 30, 2016
A NTIN POLICIES Cont'd
The Jackson Soil and Water Conservation District reports the following major governmentalfund:
General Fund - The General Fund is used to account for all financial resources ofthe District except those required to be accounted for in anotherfund.
Cash and lnvestments
Amounts shown as cash include cash in checking accounts, cash on hand and cash insaving accounts.
Capital Assets and Depreciation
Capital assets generally result from expenditures in the governmental funds. These assetsare reported on the government-wide statement of net assets but are not reported in thefund financial statements.
All capital assets are capitalized at cost (or estimated historical cost) and updated foradditions and retirements during the year. Jackson Soil and Water Conservation Districtmaintains a capilalization threshold of $1,000. lmprovements are capitalized; the cost ofnormal maintenance and repairs that do not add to the value of the asset or materially extendthe asset's life are not. Capital assets are depreciated using the straight-line method.Estimated useful lives, in year, for depreciable assets for the furniture, machinery andequipment is 3-30 years.
Net Position
Net position presents the difference between assets and liabilities in the statement of netposition. Net position invested in capital assets are reduced by the outstanding balances ofany borrowing used for the acquisition, construction or improvement of those assets.
Budqet Process
Florida Statutes govern the preparation, adoption, and administration of the budget for theDistrict. lndependent Special Districts must file its proposed budget with the County Clerkin which it is located by September 1't each year. The District did not prepare a budget forthe fiscal year ended September 30, 2016.
Estimates
The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect certainreported amounts and disclosures. Accordingly, actual results could differ from thoseestimates.
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Jackson Soil and Water Conservation DistrictNotes to Financial Statements
September 30,2016
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
Risk Manaqement and lnsurance
The District did not purchase insurance to insure itself from casualty, accident anddishonesty. The District did not deem insurance was necessary for the fiscal year endedSeptember 30, 2016.
Fund Equitv
The following fund balance classifications describe the relative strength of the spendingconstraints placed on the purposes for which resources can be used:
Nonspendable fund balance - amounts that are not in spendable form (such asinventory) or are required to be maintained intact;Restricted fund balance - amounts constrained to specific purposes by theirproviders (such as grantors, bondholders, and higher levels of government), throughconstitutional provisions, or be enabling legislation;Committed fund balance amounts constrained to specific purposes by agovernment itself, using its highest level of decision-making authority; to be reportedas committed, amounts cannot be used for any other purpose unless the governmenttakes the same highest level action to remove or change the constraint;Assigned fund balance - amounts the government intends to use for a specificpurpose; intent can be expressed by the governing body or by an official or body towhich the governing body delegates the authority;Unassigned fund balance - amounts that are available for any purpose; positiveamounts are reported only in the general fund.
At September 30, 2016, Jackson Soil and Water Conservation District had no nonspendable,restricted, committed, or assigned fund balances. Jackson Soil and Water ConservationDistrict does not have a formal policy for minimum fund balances. The District uses the mostrestrictive funds first in the following order: restricted, committed, assigned, and unassigned.
NOTE 2 _ CASH
Jackson Soil & Water Conservation District, in accordance with state and local regulations,deposits its cash funds in approved financial institutions. The financial institutions arerequired to pledge U.S. Government Securities as collateralfor such funds. Custodial creditrisk is the risk that in the event of a bank failure, the District's deposits may not be returnedto it. The District does not have a deposit policy for custodial credit risk or interest rate risk.The District has not formally adopted deposit and investment policies that limit the District'sallowable deposits or investment and address the specific types of risk to which the Districtmight be exposed. The District maintains cash balances at one bank in Marianna, Florida.At September 30, 2O16, ihe carrying amount of the district's deposits was $108,962 and thebank balance was $134,928. The bank balance was covered by federal depositoryinsurance.
a
a
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Jackson Soil and Water Conservation DistrictNotes to Financial Statements
September 30, 2016
NOTE3-CAPITALASS ETS
Capital asset activity for the year ending September 30, 2016 was as follows
BeginningBalance lncreases
EndingDecreases Balances
Equipment $ 1,259 $ $ $ 1,259
Less Accumulated DepreciationEquipment (1,084) fi75\ (1,259)
Total CapitalAssets $ 175 $ (175) $
NOTE 4 _ GRANTS
The Jackson Soil and Water Conservation District has the following agreements with theFlorida Department of Agriculture and Consumer Services, the Flint River Soil and WaterConservation District and The Nature Conservancy.
Agreement # CSFA # Grant RevenueFlorida Department of Agriculture andConsumer ServicesFlorida Department of Agriculture andConsumer ServicesFlorida Department of Agriculture andConsumer Services
Flint River Soil & Water Conservation DistrictThe Nature Conservancy
021814 42.017 $ 44,348
023425 42.017 11,O22
$ 736,699
The grants and contributions includes contributions from the Jackson County Board ofCounty Commissioners in the amount of $28,618 for in-kind services related to salaries andbenefits paid on behalf of the Organization and $7,250 in direct contributions.
TE - RELATED PARTY TRANSACTION
Two members of the Board of Supervisors of the Jackson Soil and Water ConservationDistrict received a payment under the Florida Department of Agriculture Best ManagementPractice Cost Share Program. The payments to the board members totaled $8,050. Theserelated party transactions were consummated on terms equivalent to those that prevailed in
the other arm's-length transactions made under the cost share program.
$
022786N/A
1 02998
72.O1
N/AN/A
4 605,243
11,28364,803
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INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE WITHSECTION 218,415, FLORIDA STATUTES, LOCAL GOVERNMENT
INVESTMENT POLIC/ES
Gnrnnsrny, CAVß{ & CONæANY,P.A.
CrRrrre o Puerrc AccoururarursOWEN W. GRIMSLEY, C.P.A.
DALE L. CAVIN, C.P.A.
June 20,2017Marianna, Florida
MEMBERs
FLoRTDA lNSTrrurE AND
Avr¡nrcnru lNsTlrurE oF
CERTTFTED PuBLrc AccouNTANTs
INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE WITHSECTION 218.415, FLORIDA STATUTES, LOCAL GOVERNMENT
INVESTMENT POLICIES
Board of DirectorsJackson Soil and Water Conservation DistrictMarianna, Florida 32448
We have examined the Jackson Soil and Water Conservation District's compliance with therequirements of Section 218.415, Florida Statutes, Local Governments lnvestment Policies,during the year ended September 30,2016. Management is responsible for the Jackson Soil andWater Conservation District's compliance with those requirements. Our responsibility is toexpress an opinion on the Jackson Soil and Water Conservation District's compliance based onour examination.
Our examination was conducted in accordance with attestation standards established by theAmerican lnstitute of Certified Public Accountants and, accordingly, included examining, on a testbasis, evidence about the Jackson Soil and Water Conservation District's compliance with thoserequirements and performing such other procedures as we considered necessary in thecircumstances. We believe that our examination provides a reasonable basis for our opinion. Ourexamination does not provide a legal determination on the Jackson Soil and Water ConservationDistrict's compliance with specified requirements.
ln our opinion, the Jackson Soil and Water Conservation District complied, in all material aspects,with the aforementioned requirements for the year ended for the year ended September 30, 2016.
This report is intended solely for the information and use of management and the State of FloridaAuditor General and is not intended to be and should not be used by anyone other than thesespecified parties.
çrirnsb, Cøvin {e Conparry
Grimsley, Cavin & Company, P.ACertified Public Accountants
Post Office Box220 o 4243 Lafayette Street o Marianna, Florida 32441-0220 o 850-526-3910 ¡ FAX 850-482-6019
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INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHG OV E RN M ENT AU D IT I NG SIÁNDARDS
GrunnsrEy, Cavnq & CoNzPAtrry, P.A.Ce Rrrrr¡o PusLrc AccoururRrurs
OWEN W. GRIMSLEY, C.P.A.
DALE L. CAVIN, C.P.A.
M EMBERS
FroRrDA lNsllrur€ AND
AMERTCAN lrusrrrurr orCERÌrFrED Pusuc AccouNtnNts
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHGOV ERN M E NT AU D ITI N G SIÁNDARDS
Board of DirectorsJackson Soil and Water Conservation DistrictMarianna, Florida
We have audited, in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards issued by the Comptroller General of the United States, the financial statements of thegovernmental activities and major fund of Jackson Soil and Water Conservation District, as of andfor the year ended September 30, 2016, and the related notes to the financial statements, whichcollectively comprise Jackson Soil and Water Conservation District's basic financial statementsand have issued our report thereon dated June 20,2017.
lnternal Gontrol over Financial Reporting
ln planning and performing our audit of the financial statements, we considered Jackson Soil andWater Conservation District's internal control over financial reporting (internal control) todetermine the audit procedures that are appropriate in the circumstances for the purpose ofexpressing our opinions on the financial statements, but not for the purpose of expressing anopinion on the effectiveness of Jackson Soil and Water Conservation District's internal control.Accordingly, we do not express an opinion on the effectiveness of Jackson Soil and WaterConservation District's internal control.
Our consideration of internal control was for the limited purpose described in the precedingparagraph and was not designed to identify all deficiencies in internal control that might bematerial weaknesses or significant deficiencies and therefore, material weaknesses or significantdeficiencies may exist that were not identified. However, as described in the accompanyingschedule of findings, we identified certain deficiencies in internal control that we consider to bematerial weaknesses and significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, toprevent, or detect and correct, misstatements on a timely basis. A material weakness is adeficiency, or a combination of deficiencies, in internal control such that there is a reasonable
Post OfficeBox220 e 4243 Lafayette Street. Marianna, Florida 32447-0220 ¡ 850-526-3910 o FAX 850-482-6019
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Board of DirectorsJackson Soil and Water Conservation DistrictPage 2
possibility that a material misstatement of the entity's financial statements will not be prevented,or detected and corrected on a timely basis. We consider the deficiency described in theaccompanying schedule of findings as item 07-001 to be a material weakness.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is
less severe than a material weakness, yet important enough to merit attention by those chargedwith governance. We consider the deficiencies described in the accompanying schedule offindings as item 06-001 to be a significant deficiency.
Gompliance and Other Matters
As part of obtaining reasonable assurance about whether Jackson Soil and Water ConservationDistrict's financial statements are free from material misstatement, we performed tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements,noncompliance with which could have a direct and material effect on the determination of financialstatement amounts. However, providing an opinion on compliance with those provisions was notan objective of our audit, and accordingly, we do not express such an opinion. The results of ourtests disclosed instances of noncompliance or other matters that are required to be reported underGovernment Auditing Standards and which are described in the accompanying schedule offindings as item 06-002.
Jackson Soil and Water Gonservation District
Jackson Soil and Water Conservation District's response to the findings identified in our audit isdescribed in the section of this report titled Response to Audit Findings. Jackson Soil and WaterConservation District's response was no subjected to the auditing procedures applied in the auditof the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control andcompliance and the results of that testing, and not to provide an opinion on the effectiveness ofthe entity's internal control or on compliance. This report is an integral part of an audit performedin accordance with Government Auditing Standards in considering the entity's internal control andcompliance. Accordingly, this communication is not suitable for any other purpose.
Øirnsb, Cwin tCompant
Marianna, FloridaJune 20, 2017
Grimsley, Cavin & Company, P.ACertified Public Accountants
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Jackson Soil & Water Conservation DistrictSchedule of FindingsSeptember 30, 2016
06-001
Criteria - Custody of assets, record keeping and recording of assets should have adequateseparation.
Condition - Due to the size of the organizalion, proper separation of duties may not befeasible.
Effect - Controls should be implemented to help compensate for the weaknesses
Cause - This is a small one-person bookkeeping system
Recommendation - Management should remain very active and involved in the day{o-dayoperations. lt is essential that records be maintained current and up{o-date. Controlsshould be established to provide checks and balances.
06-002
Criteria - Per Florida Statute Chapter 189.016, the Jackson Soil and Water ConservationDistrict is required to adopt a balanced budget by resolution and post the budget on theDistrict's or County's website.
Condition - The Conservation District did not adopt a balanced budget by resolution
Effect - The Conservation District is in violation of Florida Statutes, Chapter 189.016
Cause - Due to the fact that the Conservation District does not know what state funding theywill receive, they find it difficult to prepare a budget.
Recommendation - The Conservation District should prepare a budget in order to be incompliance with Florida Statute 189.016 and make necessary amendments as the yearprogresses.
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Jackson Soil & Water Conservation DistrictSchedule of FindingsSeptember 30, 2016
07-001
Criteria - An entity's system of internal control over financial reporting should includecontrols over the prevention, detection and correction of misstatements in the auditedfinancial statements.
Condition - The District relies on the external auditor to assist with preparing and explainingfinancial statements in conformity with generally accepted accounting principles.
Effect - Since the auditor cannot be a part of an entity's system of internal accountingcontrol, the District's system of internal accounting control over the financial reporting is notsufficient, by itself, to prevent, detect or correct misstatements in the audited financialstatements.
Cause - The District has a small accounting staff necessitated by the overall small size ofthe entity. They do not consider it cost effective to develop and maintain a system of internalaccounting control sufficient by itself to allow the preparation of financial statements inaccordance with generally accepted accounting principles, nor to maintain internal staff withsufficient knowledge to develop and maintain controls to prevent, detect or correctmisstatements in audited financial statements.
Recommendation - The District should continue to consider the effects of the cost ofdeveloping and benefits of implementing such a system as compared with understandingthat due to the size of their accounting department, they will continue to need externalassistance with the preparation and understanding of financial statements in accordancewith generally accepted accounting principles.
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Gnnnsrny, CAVtr',{ g Cotvrpa¡rv, P.A.
Crnrr rrro PueLrc Accou rurnrursOWEN W. GRIMSLEY, C.P.A.
DALE L. CAVIN, C.P.A.
MEMBERS
Fron¡on lrusrrtut¡ nruo
AMERtcAN lNSTrrurE oF
CERTtFtED Pu gLtc Accou¡¡r¡¡:rs
Board of DirectorsJackson Soil and Water Conservation DistrictMarianna, Florida
Report on the Financial Statements
We have audited the financial statements of the Jackson Soil and Water Conservation District, asof and for the fiscal year ended September 30, 2016, and have issued our report thereon datedJune 20,2017.
Aud itor's Responsibi I ity
We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; OMB Circular A-133, Auditsof Sfafes, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of theAuditor General.
Other Reports and Schedule
We have issued our lndependent Auditor's Report on lnternal Control over Financial Reportingand Compliance and Other Matters Based on an Audit of the Financial Statements Performed inAccordance with Government Auditing Standards; Report on lnternal Control over Compliance;Schedule of Findings; and lndependent Accountant's Report on an examination conducted inaccordance with AICPA Professional Standards, Section 601, regarding compliance requirementsin accordance withChapter 10.550, Rules of the Auditor General. Disclosures in those reportsand schedule, which are dated June 20, 2017, should be considered in conjunction with thismanagement letter
Prior Audit Findings
Section 10.554(1XiX ., Rules of the Auditor General, requires that we determine whether or notcorrective actions have been taken to address findings and recommendations made in thepreceding annual financial audit report. Corrective actions have been taken to address findingsand recommendations made in the preceding annualfinancial audit report except as noted belowunder the heading Prior Year Findings and Recommendations
Post Office Box220 o 4243 Lafayette Street o Marianna, Florida 32447-0220 r 850-526-3910 ¡ FAX 850-482-6019
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Jackson Soil and Water Conservation DistrictPage 2
The management letter items are as follows:
The Schedule of Findings items are as follows
Official Title and Legal Authority
Section 10.554(1Xi)4., Rules of the Auditor General, requires that the name or official titleand legal authority for the primary government and each component unit of the reportingentity be disclosed in the management letter, unless disclosed in the notes to the financialstatements. This information is disclosed in the notes to the financial statements.
Financial Condition
Section 10.554(1)(i)S.a., Rules of the Auditor General, requires that we report the results ofour determination as to whether or not the Jackson Soil and Water Conservation District hasmet one or more of the conditions described in Section 218.513(1), Florida Statutes, andidentification of the specific condition(s) met . ln connection with our audit, we determinedthat the Jackson Soil and Water Conservation District did not meet any of the conditionsdescribed in Section 218.503(1), Florida Statutes.
Pursuant to Section 10.554(1 )(i)5.c. and 10.556(8), Rules of the Auditor General, we appliedfinancial condition assessment procedures. lt is management's responsibility to monitor theJackson Soil and Water Conservation District's financial condition, and our financialcondition assessment was based in part on representations made by management and thereview of financial information provided by same.
Tabulation of Uncorrected Audit FindinqsCurrent Year
Findinq #2014-15 FY
Findins #2013-14 FY
Findinq #14-001 14-001 14-001
Tabulation of Uncorrected Audit FindinqsCurrent
YearFindinq #
2014-15 FYFindinq #
2013-14 FYFindinq #
06-001 06-001 06-00106-002 06-002 06-00207-001 07-001 07-001
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Jackson Soil and Water Conservation DistrictPage 3
Annual Financial Report
Section 10.554(1Xi)5.b., Rules of the Auditor General, requires that we report the resultsof our determination as to whether the annual financial report for the Jackson Soil andWater Conservation District for the financial year ended September 30, 2016, filed withthe Florida Department of Financial Services pursuant to Section 218.32(1)(a), FloridaStatutes, is in agreement with the annual financial audit report for the fiscal year endedSeptember 30,2016. ln connection with our audit, we determined that these two reportswere in agreement.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in themanagement letter any recommendation to improve financial management. See itemsbelow under Prior Year Findings for our recommendations.
Section 10.554(1Xi)3., Rules of the Auditor General, requires that we addressnoncompliance with provisions of contracts or grant agreements, or abuse, that haveoccurred, or are likely to have occurred, that have an effect on the financial statementsthat is less than material but which warrants the attention of those charged withgovernance. ln connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the LegislativeAuditing committee, members of the Florida Senate and the Florida House ofRepresentatives, the Florida Auditor General, Federal and other granting agencies, theCity Council, and applicable management, and is not intended to be and should not beused by anyone other than these specified parties.
Prior Year Findinqs
14-OO1: lt was noted during the audit that a board member does not approve invoicesprior to payment. lt is recommended that a member of the board of directors review andapprove invoices prior to their payment to insure proper internal controls are in place. Thisitem remains.
Current Year Findinqs
None
çrùnsfÊJ, Cwin t Conpary
Marianna, FloridaJune 20,2017
Grimsley, Cavin & Company, P.ACertified Public Accountant
2A
Jackson Soil & Water Conservation District2741Penn. AvenueMarianna, FL32448Ph (850) 526-2610 ext 101
Fax (850) 482-1952
June 20, 2017
Grimsley, Cavin & Company, P.A.P.O. Box zzoMarianna,FL 32447
Re: Audit for Fiscal Year Ended September go, zot6
To Whom It May Concern:
This letter is in response to the audit for the above referenced period for our agency. Wehave listed below our responses to the findings noted by your Company.
r) Regarding Schedule of Findings, Item o6-oor: The District will continue to makeevery effort to separate the record keeping duties from the custody of assets as
much as possible with our small administrative staff, and board will maintain anactive role in the day-to-day operations.
z) Regarding Schedule of Findings, Item o6-ooz: The District will prepare a budgetand file it with the Jackson County Clerk of Courts in a timely manner for theupcoming fiscal year. The District will amend the budget as necessary as the yearprogresses.
3) Regarding Schedule of Findings, Item o7-oor: The District considers the cost ofmaintaining a system of internal control to be prohibitive. The small size of theentity, as well as the minimal number of staff, precludes the establishment ofsuch a system.
4) Regarding Schedule of Findings, Item r4-oor: The District approves invoicesprior to payment by requiring a Board Member to review and initial each invoiceprior to payment.
Sincerely,
Þ*À*-s-ßB.E. Davis, Jr.ChairmanJackson Soil and Water Conservation District
BD lla
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