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  • County audit was delayed due to change in auditing firms


By Myrna Trauntvein
Times-News Correspondent

Once again, Juab County received a clean audit report.

Jon S. Haderlie, CPA, Larson & Company, PC, Spanish Fork, presented the audit to Juab County Commissioners. This is the first year for Larson & Company to perform the audit since winning the bid for the job and then replacing the former audit company.

“Your records are all materially correct and we have given you a clean opinion,” Haderlie said.

The government-wide assets of Juab County exceeded its liabilities by $258,322,143. Of this amount, $11,184,055 (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 $2,270,799.

The county’s governmental funds reported a combined ending fund balance of $12,371,776, an increase of $151,501 over the prior year’s ending fund balances.

Governmental funds report capital outlay as expenditures.

The Capital Projects Fund decreased in equity from $3,663,850 to $2,802,852 at the year’s end. The General Fund decreased its available equity by $125,732. The Class B Road Fund increased its available equity from $3,213,899 as restated to $3,830,653.

In 2017, the county collected more money in property taxes than budgeted. The restaurant tax, the sales and use tax and the local sales tax revenues were higher than anticipated. Federal payment in lieu of taxes was also higher than anticipated.

“We made the prudent decision to let the audit work go out for bid,” said Rick Carlton, commissioner.

He said that the commission appreciated the work done by both the former auditing firm and the present. In addition, the county would always make corrections for every finding that any audit might uncover.

“This is the worst switch we have seen,” said Haderlie. “We encountered significant difficulties in tying the clients records to the prior auditor work papers and prior year issued financial statements. This resulted in a delay in the audit procedures and issuance of current year financial statements.”

He was quick to point out that had nothing to do with elected officials and employees but with the change in the way the two different auditors conducted audits. Haderlie prefers to train people to do most of the audit work before he comes to visit and begin the audit.

Carlton said that the difficulty Haderlie had might have come simply from the difference in the philosophy of the two different firms.

Haderlie said it was his opinion that the former auditor had done too much of the work required for an audit rather than training department heads in the way to perform those duties themselves.

“My intent is that we need to provide training for all department heads,” said Haderlie. “We are that resource.”

The former auditors had been performing the audit for the past 20 years.

“We will always follow the state guidelines, and we are in compliance with state guidelines,” said Carlton. “We have never been found to not be in compliance.”

He said the county was a rural one and had a limited staff. Of the ten findings given, some were the result of there being too few employees to allow oversight of all dealings.

“All findings that we have been given,” said Byron Woodland, commissioner, “we have rectified in the past.”

Juab County has three discrete component units, according to the management letter prepared by Alaina Lofgran, county clerk/auditor.

The largest of these units is the Special Service Fire District which is used to account for the revenues and expenditures of mineral lease payments from other government entities.

The next largest is Special Service District #2.

Special Service District #2 is the unit used to account for the collection and expenditure of mineral lease payments from other governmental entities.

The last unit was Special Service District #1. This district was to account for the ownership, operation and maintenance of the Daughters of Utah Pioneers (DUP) museum in the old county courthouse.

“Service District #1 was closed in 2017,” said Carlton. “All the assets were transferred back to the county but there was little effect on the financials of the county.”

In addition to the special service districts, the Municipal Building Authority of Juab County, the Juab County Fair Board and the Juab Rural Development Agency Landfill were included in the financial statements.

State statutes limit the amount of general obligation debt a governmental entity may issue to 2 percent of its total fair market value of taxable property in the county. The current debt limitation for general obligation debt for Juab County is $10,003,638.

“Juab County currently has no general obligation debt,” said Haderlie.

He also suggested that sheriff’s deputies start using compensatory time for time off before using vacation or paid time off as the county cannot afford to pay out all compensatory time balances.

Another one of his suggestions was that the minutes of the commission meetings be posted to the Utah Public Notice Website within three days of the date they are approved.

Lofgran said that she was posting the minutes to the county website and that they were available for all who were interested.

“We recommend that the county assign an individual the responsibility to make sure approved minutes are either posted to the UPN website or that they are posted to the county website with a corresponding link on the local web page,” he said.County audit was delayed due to change in auditing firms

By Myrna Trauntvein

Times-News Correspondent

Once again, Juab County received a clean audit report.

Jon S. Haderlie, CPA, Larson & Company, PC, Spanish Fork, presented the audit to Juab County Commissioners. This is the first year for Larson & Company to perform the audit since winning the bid for the job and then replacing the former audit company.

“Your records are all materially correct and we have given you a clean opinion,” Haderlie said.

The government-wide assets of Juab County exceeded its liabilities by $258,322,143. Of this amount, $11,184,055 (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 $2,270,799.

The county’s governmental funds reported a combined ending fund balance of $12,371,776, an increase of $151,501 over the prior year’s ending fund balances.

Governmental funds report capital outlay as expenditures.

The Capital Projects Fund decreased in equity from $3,663,850 to $2,802,852 at the year’s end. The General Fund decreased its available equity by $125,732. The Class B Road Fund increased its available equity from $3,213,899 as restated to $3,830,653.

In 2017, the county collected more money in property taxes than budgeted. The restaurant tax, the sales and use tax and the local sales tax revenues were higher than anticipated. Federal payment in lieu of taxes was also higher than anticipated.

“We made the prudent decision to let the audit work go out for bid,” said Rick Carlton, commissioner.

He said that the commission appreciated the work done by both the former auditing firm and the present. In addition, the county would always make corrections for every finding that any audit might uncover.

“This is the worst switch we have seen,” said Haderlie. “We encountered significant difficulties in tying the clients records to the prior auditor work papers and prior year issued financial statements. This resulted in a delay in the audit procedures and issuance of current year financial statements.”

He was quick to point out that had nothing to do with elected officials and employees but with the change in the way the two different auditors conducted audits. Haderlie prefers to train people to do most of the audit work before he comes to visit and begin the audit.

Carlton said that the difficulty Haderlie had might have come simply from the difference in the philosophy of the two different firms.

Haderlie said it was his opinion that the former auditor had done too much of the work required for an audit rather than training department heads in the way to perform those duties themselves.

“My intent is that we need to provide training for all department heads,” said Haderlie. “We are that resource.”

The former auditors had been performing the audit for the past 20 years.

“We will always follow the state guidelines, and we are in compliance with state guidelines,” said Carlton. “We have never been found to not be in compliance.”

He said the county was a rural one and had a limited staff. Of the ten findings given, some were the result of there being too few employees to allow oversight of all dealings.

“All findings that we have been given,” said Byron Woodland, commissioner, “we have rectified in the past.”

Juab County has three discrete component units, according to the management letter prepared by Alaina Lofgran, county clerk/auditor.

The largest of these units is the Special Service Fire District which is used to account for the revenues and expenditures of mineral lease payments from other government entities.

The next largest is Special Service District #2.

Special Service District #2 is the unit used to account for the collection and expenditure of mineral lease payments from other governmental entities.

The last unit was Special Service District #1. This district was to account for the ownership, operation and maintenance of the Daughters of Utah Pioneers (DUP) museum in the old county courthouse.

“Service District #1 was closed in 2017,” said Carlton. “All the assets were transferred back to the county but there was little effect on the financials of the county.”

In addition to the special service districts, the Municipal Building Authority of Juab County, the Juab County Fair Board and the Juab Rural Development Agency Landfill were included in the financial statements.

State statutes limit the amount of general obligation debt a governmental entity may issue to 2 percent of its total fair market value of taxable property in the county. The current debt limitation for general obligation debt for Juab County is $10,003,638.

“Juab County currently has no general obligation debt,” said Haderlie.

He also suggested that sheriff’s deputies start using compensatory time for time off before using vacation or paid time off as the county cannot afford to pay out all compensatory time balances.

Another one of his suggestions was that the minutes of the commission meetings be posted to the Utah Public Notice Website within three days of the date they are approved.

Lofgran said that she was posting the minutes to the county website and that they were available for all who were interested.

“We recommend that the county assign an individual the responsibility to make sure approved minutes are either posted to the UPN website or that they are posted to the county website with a corresponding link on the local web page,” he said.