district water conservation soil jackson … rpts/2016... · balance sheet - governmental funds ......

JACKSON SOIL & WATER CONSERVATION DISTRICT

ANNUAL FINANCIAL REPORT

SEPTEMBER 30, 2016

Jackson Soil & Water Conservation DistrictBoard of Supervisors

Mack GlassGreg Hall

Tom StadsklevSteve BasfordB.E. Davis, Jr.

TABLE OF CONTENTS

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

PAGE

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14

16

18

21

I

3

4

5

6

7

8

I NDEPENDENT AUDITOR'S REPORT

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

2

FINANCIAL STATEMENTS

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

3

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


s 773.107 32,205

917917

33,12255 640

s 8a76?

4

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.


5

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

b

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

7

NOTES TO FINANCIAL STATEMENTS

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.

I


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.

I


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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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

o

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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

12

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


Post Office Box220 o 4243 Lafayette Street o Marianna, Florida 32441-0220 o 850-526-3910 ¡ FAX 850-482-6019

13

INDEPENDENT AUDITOR'S REPORTREQUIRED BY GOVERNMENT AUDITING SIANDARDS

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.


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


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

14

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


15

SCHEDULE OF FINDINGS

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.

16

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.

17

ç

INDEPENDENT AUDITOR'S REPORT TO MANAGEMENTREQUIRED BY THE STATE OF FLORIDA

Gnnnsrny, CAVtr',{ g Cotvrpa¡rv, P.A.

Crnrr rrro PueLrc Accou rurnrursOWEN W. GRIMSLEY, C.P.A.


MEMBERS

Fron¡on lrusrrtut¡ nruo

AMERtcAN lNSTrrurE oF

CERTtFtED Pu gLtc Accou¡¡r¡¡:rs


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

18


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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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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district water conservation soil jackson … rpts/2016... · balance sheet - governmental funds ......

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