DOÑA ANA COUNTY

149 Pages·2013·1.22 MB·English

DOÑA ANA COUNTY

INDEPENDENT AUDITORS’ REPORT

AND FINANCIAL STATEMENTS

For the Year Ended June 30, 2013

STATE OF NEW MEXICO
DOÑA ANA COUNTY
Table of Contents
For The Year Ended June 30, 2013

Page
INTRODUCTORY SECTION
Table of contents i-iii
Official roster 1
FINANCIAL SECTION
Independent auditors' report 2-4
Management’s discussion and analysis 5-14
Basic financial statements
Government-wide financial statements:
Statement of net position 15
Statement of activities 16
Fund financial statements:
Balance sheet – Governmental funds 17
Reconciliation of the balance sheet to the statement
of net position 18
Statement of revenues, expenditures, and changes in
fund balances – Governmental funds 19-20
Reconciliation of the statement of revenues,
expenditures and changes in fund balances of
governmental funds to the statement of activities 21
Statement of revenues and expenditures – budget and
actual non-GAAP budgetary basis– General fund 22
Statement of revenues and expenditures – budget and
actual non-GAAP budgetary basis– special revenue
fund – Health services (SLIAG) 23
Statement of revenues and expenditures – budget and
actual non-GAAP budgetary basis– special revenue
fund – County flood commission fund 24
Statement of revenues and expenditures – budget and
actual non-GAAP budgetary basis– special revenue
fund – Fire districts 25
Statement of net position – Proprietary funds 26-27
Statement of revenues, expenses, and changes in
fund net position – Proprietary funds 28-29
Statement of cash flows – Proprietary funds 30-33
Statement of fiduciary assets and liabilities – Agency funds 34
Notes to the financial statements 35-61
SUPPLEMENTAL INFORMATION
Combining and individual fund statements and schedules:
Nonmajor governmental fund descriptions 62-64
Combining balance sheet – non-major governmental funds 65
Combining statement of revenues, expenditures, and changes
in fund balances – non-major governmental funds 66
Combining balance sheet – Nonmajor funds 67-72
Combining statement of revenues, expenditures and
changes in fund balances – Nonmajor funds 73-78

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STATE OF NEW MEXICO
DOÑA ANA COUNTY
Table of Contents
For The Year Ended June 30, 2013

Page
Statement of revenues, expenditures, and changes in
fund balance – budget (Non-GAAP budgetary basis)
and actual:
Special revenue funds:
Civil Preparedness 79
Colonias Initiative 80
Community Services 81
Confiscated Assets 82
Correction Fees 83
County Clerk Reuip/Rcrd 84
County Treasurer's Fees 85
Crisis Triage Center 86
DWI Grant 87
Emergency Medical Services 88
Farm and Range 89
Federal Reimbursement 90
Indigent Hospital Care Fund 91
Law Enforcement Protection 92
Reappraisal Administrative Fees 93
Sheriff's Grants State 94
Spaceport Cross Receipts Tax 95
State Appropriations 96
Capital projects funds:
Chaparral Wastewater System - SAP 97
Airport FAA Projects 98
Chaparral Wastewater System - USDA 99
Wastewater Projects/Grants 100
Debt service fund 101
Nonmajor enterprise fund descriptions 102
Combining balance sheet – non-major enterprise funds 103-104
Combining statement of revenues, expenditures, and changes
in fund balances – non-major enterprise funds 105-106
Combining statements of cash flows – Non-major enterprise funds 107-110
Statement of revenues, expenditures, and changes in
fund balance – budget (Non-GAAP budgetary basis)
and actual:
Enterprise funds:
NMED County Utilities 111
South Central Wastewater 112
Chaparral Wastewater System 113
Dona Ana Wastewater System 114
La Union Wastewater System 115
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STATE OF NEW MEXICO
DOÑA ANA COUNTY
Table of Contents
For The Year Ended June 30, 2013

Page
Las Palmeras/Montana Vista Wastewater 116
Rincon Wastewater 117
Salem/Ogas Wastewater 118
Internal Service Fund - Fleet 119
Schedule of changes in fiduciary assets and liabilities –
Agency funds 120-121
OTHER SUPPLEMENTAL INFORMATION
Schedule of cash and investments 122-123
Schedule of collateral 124
Schedule of fund balances 125
Schedule of reconciliation of property taxes 126
County treasurer's property tax schedule 127-132
Schedule of joint powers agreements 133-134
Schedule of expenditures of federal awards 135-136
COMPLIANCE SECTION
Independent Auditors' Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 137-138
Independent Auditors' Report on Compliance For Each Major Program
and on Internal Control Over Compliance Required by OMB
Circular A-33 139-140
Schedule of Findings and Questioned Costs 141-142
EXIT CONFERENCE 143

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STATE OF NEW MEXICO
DOÑA ANA COUNTY
Official Roster
As of June 30, 2013

County Officials
Name Title
Billy G. Garrett Vice-Chair, Commissioner – District 1
Dr. David J. Garcia Commissioner – District 2
Karen G. Perez Chair, Commissioner – District 3
Wayne D. Hancock Commissioner – District 4
Leticia Duarte-Benavidez Commissioner – District 5
Administrative Officials
Sue Padilla Interim County Manager
David Gutierrez County Treasurer
Lynn Ellins County Clerk
Andy Segovia County Assessor
Alice M. Salcido Probate Judge
Todd Garrison County Sheriff

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INDEPENDENT AUDITORS’ REPORT

Mr. Hector H. Balderas, State Auditor and
The Board of County Commissioners
Doña Ana County
Las Cruces, New Mexico

Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, the aggregate remaining fund information, and the budgetary
comparisons for the general fund and major special revenue funds of Doña Ana County (the County), as
of and for the year ended June 30, 2013, and the related notes to the financial statements which
collectively comprise the County’s basic financial statements as listed in the table of contents. We also
have audited the financial statements of each of the County’s nonmajor governmental, nonmajor
enterprise, internal service funds, and the budgetary comparisons for the major capital project funds,
debt service funds, and all nonmajor funds presented as supplementary information in the
accompanying combining and individual fund financial statements, as defined by the Government
Accounting Standards Board, in the accompanying combining and individual fund financial statements
as of and for the year ended June 30, 2013, as listed in the table of contents.

Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatements, whether due to fraud or
error.

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion.

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November 13, 2013, Independent Auditors’ Report, continued

An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the County, as of June 30, 2013, and the
respective changes in financial position and where applicable, cash flows thereof and the respective
budgetary comparisons for the general fund and major special revenue funds for the year then ended in
accordance with accounting principles generally accepted in the United States of America. In addition,
in our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of each nonmajor governmental, nonmajor enterprise, and internal service
fund of the County as of June 30, 2013, and the respective changes in financial position and cash flows,
where applicable, thereof and the respective budgetary comparisons for the major capital project funds,
debt service funds, and all nonmajor funds for the year then ended in accordance with accounting
principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 5-14 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the County’s financial statements the
combining and individual fund financial statements, the schedule of changes in assets and liabilities -
agency funds, and the budgetary comparisons. The Schedule of Expenditures of federal awards as
required by Office of Management and Budget Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations, and the other schedules listed as “other supplemental information” in
the table of contents, required by 2.2.2.NMAC are presented for purposes of additional analysis and are
not a required part of the basic financial statements.

The Schedule of Expenditures of federal awards and other schedules listed as “other supplemental
information” in the table of contents, required by 2.2.2 NMAC are the responsibility of management
and were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and other
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November 13, 2013, Independent Auditors’ Report, continued

additional procedures in accordance with the auditing standards generally accepted in the United States
of America. In our opinion, the Schedule of Expenditures and other schedules listed as “other
supplemental information” in the table of contents required by 2.2.2 NMAC are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November
13, 2013 on our consideration of the County’s internal control 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 to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the County’s internal
control over financial reporting and compliance.

Hinkle + Landers, P.C.
Albuquerque, NM
November 13, 2013

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STATE OF NEW MEXICO
DOÑA ANA COUNTY
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
FOR THE YEAR ENDED JUNE 30, 2013

Doña Ana County's management discussion and analysis presents an overview of the County's financial
activities for the fiscal year ended June 30, 2013. Please read it in conjunction with Doña Ana County's
financial statements beginning on page 15.

FINANCIAL HIGHLIGHTS

 The County completed fiscal year 2013 with $316,372,548 in total assets; this is roughly a 3%
decrease in assets when compared to the $327,138,037 in fiscal year 2012. Total Liabilities for
net position decreased by roughly 31% or $21,390,180 to $47,172,768; while Total Net Position
increased slightly more than 4% percent or $10,624,691 to complete the fiscal year at
$269,199,780.

 Net Position for Governmental Activity increased 7% or $14,148,760 to end the fiscal year at
$230,882,012; while Business-Type Activities decreased by 8 % or $3,524,069 for a fiscal year
net position balance of $38,317,768. Overall revenues increased by 3% to $122,105,830 and
expenditures decreased by roughly 30% to $109,221,521.

 The County's financial analysis of County Governmental Funds indicates a decrease in total
assets of $14,094,133 or 14% to $85,178,191; total liabilities decreased by $2,583,152 or 19%,
while total fund balance decreased by $11,510,981 or 13%.

 On February 10, 2005, Doña Ana County and the City of Sunland Park entered into a
Memorandum of Understanding (DAC #05-259) and an Interim JPA (DAC #05-260) for the
purposes of combining all the City water and wastewater facilities and operations with certain
defined County water and wastewater facilities and designating subdivision, zoning, planning
and platting jurisdiction within a certain designated interim service area. These agreements
were superseded by JPA, DAC #09-191, enacted February 24, 2009-establishes independent
Joint Authority (CRRUA) with a 20 year term

 Doña Ana County received a $5,120,800 Water Project Loan/Grant from New Mexico Finance
Authority. The project consists of constructing an arsenic treatment facility in the Santa Teresa
Border Region. In fiscal year 2013, $2,241,291 of the grant has been expended on construction.  

 Doña Ana County received $2,535,000 in Local Economic Development Act Funding from the
New Mexico Economic Development Department. Of that amount, $2,135,000 was received for
Water System, Wastewater System, and Fire Suppression Improvements and $400,000 for
Revitalization of the Santa Teresa Distribution Center. In fiscal year 2013, $748,182 has been
expended on water system improvements and $400,000 for the distribution center
revitalization.  

 The County defeased the GRT Revenue Bond Series 2003 through the issuance of the GRT
Refunding Revenue Bonds, Series 2012.

 Total bonded debt at June 30, 2013 for the County was $28,515,000.

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