ITEM:

CONSENT CALENDAR

 

4.

REVIEW AND ACCEPT INDEPENDENT AUDITORíS REPORT FOR FISCAL YEAR 2005-2006

 

Meeting Date:

December 11, 2006

Budgeted:

N/A

 

From:

David A. Berger,

Program/

N/A

 

General Manager

Line Item No.:

 

Prepared By:

Rick Dickhaut

Cost Estimate:

N/A

 

General Counsel Approval:N/A

Committee Recommendation: The Administrative Committee reviewed this item on December 1, 2006 and recommended approval.

CEQA Compliance:N/A

 

SUMMARY:Drafts of the Financial Statements and Independent Auditorsí Report, and Board Disclosure Letter for the fiscal year ending June 30, 2006 have been received from the Districtís external auditors, Hayashi & Wayland.They have been distributed under separate cover to the Board and are available for public review at the District office.The report can also be accessed on the Districtís website.

The auditors have issued a clean opinion on the financial statements.The statements show that revenues for the year totaled $4,281,870 and expenditures were $5,104,181, resulting in a deficit (use of reserves) of $822,311.This actual use of reserves compares to the budgeted amount of $1,340,000 which resulted in an additional net carryover of $517,689 to fiscal year 2006-07 (see pages 8 and 9 of the financial statements for a breakdown of the major budget variances that resulted in the additional carryover).The updated reserve amounts will be reflected in the mid-year budget adjustment document.

 

If issued, a Management Letter offers constructive suggestions for improvements on matters that came to the auditorsí attention in connection with the audit.No such matters were noted during this audit and, therefore, no letter was issued.

 

The Administrative Committee reviewed the draft report and the related information on December 1, 2006 with the District's auditors, Hayashi and Wayland.As a result of that review the Committee recommended approval by a 3 to 0 vote.

 

Following approval by the Board, the report will be finalized and provided to Monterey County and various financial institutions that the District conducts business with.The statements will also be made available for public review.

 

RECOMMENDATION:District staff recommends that the Board review and accept the Financial Statements and Independent Auditorsí Report for the year ending June 30, 2006.The Administrative Committee reviewed draft report December 1, 2006 and voted 3 to 0 to recommend approval of the staff recommendation.

 

EXHIBITS

None

 

 

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