To: Board of Supervisors
Department or Agency Name(s): Auditor-Controller-Treasurer-Tax Collector
Staff Name and Phone Number: Damian Gonshorowski, 565-8309
Vote Requirement: Unanimous
Supervisorial District(s): District 5
Title:
Title
Green Valley Cemetery - Agreed-Upon Procedures
End
Recommended Action:
Recommended action
Approve the Green Valley Cemetery District’s (District) request to switch from an annual audit to an agreed-upon procedures engagement to comply with Government Code 26909. (Fifth District)
end
Executive Summary:
The District is requesting that the Board of Supervisors of the County of Sonoma unanimously adopt a resolution to obtain an agreed-upon procedures engagement instead of an audit, first to cover the period from July 1, 2009 through June 30, 2019, and then every five years covering a five-year period going forward to assist the District in complying with §26909. A corresponding resolution has already been adopted by the District’s Board of Directors and is attached to this item. The County of Sonoma Auditor-Controller-Treasurer-Tax Collector (ACTTC) has vetted this action and is in support of this change in audit requirements for the District.
Discussion:
California Government Code §26909 mandates that the county auditor either make or contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of every special district within the county for which an audit by a certified public accountant or public accountant is not otherwise provided. The District’s last audit covered the fiscal year ended June 30, 2009. The District is small and annual audits are not cost effective. The District's annual revenues are between $12,000 and $22,000, made up primarily of property tax and plot sales. Agreed-upon procedures engagements are a cost-effective alternative provided for in §26909, Subsection (C)(1). §26909 provides that a special district may, by unanimous request of the governing board of the special district and with unanimous approval of the board of supervisors, replace the annual audit required by this section with a financial review, or an agreed-upon procedures engagement, in accordance with the appropriate professional standards, as determined by the county auditor, if the following conditions are met: (A) All of the special district’s revenues and expenditures are transacted through the county’s financial system. (B) The special district’s annual revenues do not exceed one hundred fifty thousand dollars ($150,000). (C) The special district shall pay for any costs incurred by the county auditor in performing an agreed-upon procedures engagement. Those costs shall be charged against any unencumbered funds of the district available for that purpose.
The District’s Board of Directors unanimously adopted the request for an agreed-upon procedures engagement at their October 27, 2020 meeting. The ACTTC concludes that the District meets the requirements as outlined above and supports the switch from an annual audit to an agreed-upon procedures engagement. Adopting the resolution in support of the District switching to agreed-upon procedures for the District as an alternative to annual audits, will allow this smaller district with limited resources to comply with the law in a cost-effective way.
Prior Board Actions:
None.
Fiscal Summary
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FY 20-21 Adopted |
FY21-22 Projected |
FY 22-23 Projected |
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Narrative Explanation of Fiscal Impacts:
No fiscal impact.
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Green Valley Cemetery - Letter to the BOS
Green Valley Cemetery - Board of Director’s Resolution
Related Items “On File” with the Clerk of the Board:
None.