Montana Water Pollution Control and Drinking Water State Revolving Fund Programs : Department of Environmental Quality, Department of Natural Resources and Conservation : financial audit for the fiscal year ended June 30 .. PDF
Preview Montana Water Pollution Control and Drinking Water State Revolving Fund Programs : Department of Environmental Quality, Department of Natural Resources and Conservation : financial audit for the fiscal year ended June 30 ..
s 353.9 L72MWPC 2003 Legislative Audit Division StateofMontana ReporttotheLegislature March2004 Financial Audit Forthe FiscalYearEndedJune30, 2003 Montana Water Pollution Control and Drinking Water State Revolving Fund Programs DepartmentofEnvironmentalQuality DepartmentofNaturalResourcesandConservation WeperformedafinancialauditoftheMontanaWaterPollutionControl andDrinkingWaterStateRevolvingFundProgramsforthefiscalyear endedJune30,2003. Thisreportcontainstheauditedfinancialstatements andaccompanyingnotesforfiscalyear2002-03. Weissuedanunqualified opiniononthefinancialstatements. Theopinionmeansthereadermay relyonthefinancialstatementinformationpresented. COLLECTION DOCUMENTS STATE 2004 MONTANA|Tgf Directcomments/inquiriesto: LegislativeAuditDivision Room160,StateCapitol POBox201705 03SP-85 HelenaMT 59620-1705 Helpeliminatefraud,waste,andabuseinstategovernment. CalltheFraudHotlineat1-800-222-4446 statewideor444-4446inHelena. MONTANASTATELIBRARV 3 0864 1002 2303 4 FINANCIALAUDITS FinancialauditsareconductedbytheLegislativeAuditDivisiontodetermineifthefinancialstatements includedinthisreportarepresentedfairlyandtheagencyhascompliedwithlawsandregulationshaving adirectandmaterialeffectonthefinancialstatements. Inperformingtheauditwork,theauditstaffuses standardssetforthbytheAmericanInstituteofCertifiedPublicAccountantsandtheUnitedStates GeneralAccountingOffice. Financialauditstaffmembersholddegreeswithanemphasisinaccounting. MoststaffmembersholdCertifiedPublicAccountant(CPA)certificates. GovernmentAuditingStandards,theSingleAuditActAmendmentsof1996andOMBCircularA-133 requiretheauditortoissuecertainfinancial,internalcontrol,andcompliancereports. Thisindividual agencyauditreportisnotintendedtocomplywiththeserequirements.TheLegislativeAuditDivision issuesastatewidebiennialSingleAuditReportwhichcomplieswiththeabovereportingrequirements. TheSingleAuditReportforthetwofiscalyearsendedJune30,2003,willbeissuedbyMarch31,2004. TheSingleAuditReportforthetwofiscalyearsendedJune30,2001,wasissuedonMarch26,2002. CopiesoftheSingleAuditReportcanbeobtainedbycontacting: SingleAuditCoordinator LegislativeAuditDivision OfficeofBudgetandProgramPlanning Room 160,StateCapitol StateCapitol POBox201705 HelenaMT 59620 HelenaMT 59620-1705 Phone(406)444-3616 MEMBERSOFTHELEGISLATIVEAUDITCOMMITTEE SenatorJohnCobb RepresentativeDeeBrown SenatorMikeCooney RepresentativeTimCallahan SenatorJimElliott,ViceChair RepresentativeHalJacobson SenatorJohnEsp RepresentativeJohnMusgrove SenatorDanHarrington RepresentativeJeffPattison,Chair SenatorCoreyStapleton RepresentativeRickRipley LEGISLATIVE AUDIT DIVISION ScottA. Seacat,LegislativeAuditor DeputyLegislativeAuditors: JohnW.Northey,LegalCounsel JimPellegrini,PerformanceAudit ToriHunthausen,ISAudit&Operations JamesGillett,Financial-ComplianceAudit March2004 TheLegislativeAuditCommittee oftheMontanaStateLegislature: Thisisourreportonthefiscalyear2002-03 financialauditoftheMontanaWaterPollutionControlState RevolvingFund(WPCSRF)andDrinkingWaterStateRevolvingFund(DWSRF)Programs. The DepartmentofNaturalResourcesandConservationrequestedtheauditoftheseprogramsbecauseannual auditsarerequiredbythefederalEnvironmentalProtectionAgency. Theobjectivesofafinancialauditincludedeterminingiftheprograms' financialstatementspresentfairly theirfinancialpositionatJune30,2003,andtheresultsoftheprograms' operationsforthefiscalyearthen ended. Wetestedcompliancewithstateandfederallawsthathaveadirectandmaterialimpactonthe financialstatements. TheWPCSRFprogramprovidesloansatareducedinterestratetofinanceconstructionofpublicly-owned waterpollutioncontrolfacilities,nonpointsourcepollutioncontrolprojects,andestuarymanagementplans. Waterpollutioncontrolloansarecomprisedoffederalgrantsandstatematchfunds,andmustberepaid within20years. AsofJune30,2003,theWaterPollutionControlProgramhad$95,191,431 ofoutstanding loans,includingadvancesfromotherfunds. TheDWSRFprogramprovideslowinterestloanstocommunitiesfortheconstructionofdrinkingwater treatmentfacilities. Drinkingwaterloansarecomprisedoffederalgrantsandstatematchfunds,andmaybe financedupto30years. AtJune30,2003,theDrinkingWaterProgramhad$47,109,491 ofoutstanding loans. OnpageA-l,youwillfindtheIndependentAuditor'sReportfollowedbythefinancialstatementsand accompanyingnotes. Weissuedanunqualifiedopinionwhichmeansthereadercanrelyonthepresented information. Theprograms' financialstatementsbeginonpageA-3. Ouropinionontheprograms' supplementaryfinancialinformationisonpageB-l. ThesupplementaryinformationbeginsonpageB-3. BeginningonpageC-l isourreportoncomplianceandinternalcontrolwhichisrequiredbyGovernment AuditingStandardsissuedbytheComptrollerGeneraloftheUnitedStates. Thedepartmentshavereviewed thisreportandagreewiththecontents. WethankthedirectorsoftheDepartmentofEnvironmentalQualityandtheDepartmentofNatural ResourcesandConservationandtheirstaffforcooperationandassistanceduringtheaudit. Respectfullysubmitted, ScottA. Seacat LegislativeAuditor Room 160,StateCapitolBuildingPOBox201705Helena,MT 59620-1705 Phone(406)444-3122 FAX(406)444-9784 [email protected] Digitized by the Internet Archive in 2010 with funding from Montana State Library http://www.archive.org/details/montanawaterpoll2003mont Appointed and Administrative Officials Departmentof JanSensibaugh,Director EnvironmentalQuality TomLivers,DeputyDirector AnnDanzer,ChiefFinancialOfficer,Financial Services DepartmentofNatural BudClinch,Director ResourcesandConservation AnnaMiller,FinancialAdvisor AnnBauchman,Administrator,CentralizedServicesDivision ForadditionalinformationconcerningtheMontanaWaterPollution ControlandDrinkingWaterStateRevolvingFundPrograms, contactAnnaMiller,FinancialAdvisor,at: POBox201601 HelenaMT 59620-1601 (406)444-6689 e-mail: annamfestate.mt.us TheauditstaffinvolvedinthisauditwereAngieLang andAlexaO'Dell. Page i 1 LEGISLATIVE AUDIT DIVISION ScottA. Seacat,LegislativeAuditor /#A Ji\ DeputyLegislativeAuditors: JohnW.Northey,LegalCounsel U^^SJJJPn JimPellegrini,PerformanceAudit ToriHunthausen,ISAudit&Operations JamesGillett,Financial-ComplianceAudit INDEPENDENTAUDITOR'SREPORT TheLegislativeAuditCommittee oftheMontanaStateLegislature: WehaveauditedtheaccompanyingCombinedBalanceSheetoftheMontanaWaterPollutionControl State RevolvingFund(WPCSRF)andDrinkingWaterStateRevolvingFund(DWSRF)asofJune30,2003,and therelatedCombinedStatementofRevenues,Expenditures,andChangesinFundBalanceforthefiscal yearthenended. Theinformationcontainedinthesefinancialstatementsistheresponsibilityofthe managementattheMontanaDepartmentofEnvironmentalQualityandtheMontanaDepartmentofNatural ResourcesandConservation(departments). Ourresponsibilityistoexpressanopiniononthesefinancial statementsbasedonouraudit. WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesof AmericaandstandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards,issued bytheComptrollerGeneraloftheUnitedStates. Thosestandardsrequirethatweplanandperformthe audittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterial misstatement. Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsand disclosuresinthefinancialstatements. Anauditalsoincludesassessingtheaccountingprinciplesusedand significantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancial statement presentation. Webelievethatourauditprovidesareasonablebasisforouropinion. Asdiscussedinthenotestothefinancialstatements,thefinancialstatementsoftheMontanaWater PollutionControlandDrinkingWaterStateRevolvingFundProgramsareintendedtopresentthefinancial positionandresultsofoperationsofonlythatportionofthefinancialreportingentityofthestateof Montanathatisattributabletothetransactionsoftheprograms. Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,the financialpositionoftheMontanaWaterPollutionControlandDrinkingWaterStateRevolvingFund ProgramsasofJune30,2003,andresultsofoperationsforthefiscalyearthenended, inconformitywith accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica. Room 160,StateCapitolBuildingPOBox201705Helena,MT 59620-1705 Phone(406)444-3122 FAX(406)444-9784 [email protected] PageA- InaccordancewithGovernmentAuditingStandards,wehavealsoissuedareportdatedMarch5,2004,on ourconsiderationofthedepartments' compliancewithlawsandregulationsandthedepartments' internal controlstructures. Respectfullysubmitted, JamesGillett,CPA March5,2004 DeputyLegislativeAuditor PageA-2 MONTANAWATERPOLLUTIONCONTROLANDDRINKINGWATER STATEREVOLVINGFUNDPROGRAMS COMBINEDBALANCESHEET SPECIALREVENUEANDDEBTSERVICEFUNDS JUNE30,2003 WATERPOLLUTIONCONTROL DRINKINGWATER STATESPECIALFEDERALSPECIAL DEBT STATESPECIAL FEDERALSPECIAL DEBT REVENUE REVENUE SERVICE REVENUE REVENUE SERVICE TOTAL Cash/CashEquivalents $2,974,333 $772 $803,839 $3,547,226 $21,709 $701,163 $8,049,042 ExpenseAdvancestoEmployees 500 1.000 1,500 InterestReceivable 270.808 1.159.175 115.881 500.757 2.046.621 DuefromFederalGovernment 25.335 248.115 273.450 Investments 11.940.129 1.273.472 5.039.077 765.747 19.018,425 LoansReceivable 84.695.921 47.109,491 131.805.412 AdvancesfromOtherFunds 10.495.510 10,495,510 TotalAssets $110.376.701 $26,607 $3.236.486 $55,811,675 $270,824 $1,967,667 $171,689,960 LIABILITIESANDFUNDBALANCES Umbllnios AccountsPayable $25,775 $7,888 $270,689 $327,525 PayrollPayable 24.719 7.677 32.396 DeferredRevenue 30,395 30,438 InterentrtyLoansPayable 5,000 11,000 16,000 TotalLiabilities $55,494 $26,607 $0 $23,174 $301,084 $0 $406,359 FundBalances ReservedforLoansReceivableandAdvance;! $91,923,022 $46,398,069 $138,321,091 Unreserved,Undesignated 18,398,185 $3,236,486 9,390,432 ($30,260) $1,967,667 32.962.510 TotalFundBalances $110,321,207 $0 $3,236,486 $55,768,50: ($30,260) $1,967,667 TotalLiabilitiesandFundBalances $110,376,701 $270,824 $1,967,667 TheaccompanyingnotestothefinancialstatementsareanIntegralpariofthisstatement PageA-3 MONTANAWATERPOLLUTIONCONTROLANDDRINKINGWATER STATEREVOLVINGFUNDPROGRAMS COMBINEDSTATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE SPECIALREVENUEANDDEBTSERVICEFUNDS FORTHEFISCALYEARENDEDJUNE30.2003 WATERPOLLUTIONCONTROL DRINKINGWATER STATESPECIAL FEDERALSPECIAL DEBT STATESPECIALFEDERALSPECIAL DEBT REVENUE REVENUE SERVICE REVENUE REVENUE SERVICE TOTAL FederalCapitalizationGrantRevenue $17,080,715 $8,096,835 $25,177,550 $942,164 $15,477 $392,467 $185,744 1.535.851 InterestEarningsfromLoans 726.785 2.878.683 183.239 1.577.601 5.366.308 tandTOOnTgmAaLtjRoEnVFEeNeUsES 429.754 29 100,594 $8.096,190473 $1,763.345 530,484 EXPENDITURES ExcessRevenuesOver/(Under) $6,592.361 tl.763.345 OTHERFINANCINGSOURCES GeneralObligationBondsProceeds $4,405,000 OperatingTransfersIn DebtServiceSweep 906.175 DebtServiceTransfertoBANFund 50.000 OnginationVAdministraLiveFees $263,053 36,724 $63,870 363.647 LoanLossReserveSweep 1.005.804 375.014 3.125 1.383.943 ArbitrageRebates 45.817 2.559 31,970 80.347 FederalCapitalizationGrants 16.760.762 6.503.192 23.263.954 TotalOtherFinancingSources $0 $66.995 OTHERFINANCINGUSES BondPnncipal $825,000 Bondinterest 1.063.079 BondsCostof 155.627 ArbitrageTaxes 84,166 OperatingTransfersOut DebtServiceSweep 906,175 DebtServiceTransfertoBANFund 50.000 Ongmation/AdministratjveFeesTransfer 100.594 363.647 ArbitrageRebates LoanLossReserveSweep 3.125 FederalCapitalizationGrants TotalOtherFinancingUses $6,503,192 $1.579,456 Excess*deficiency)ofrevenuesandother financingsourcesoven:under)expenditures andotherfinancinguses $22,718,872 $0 $352,202 $9,578,649 $89,169 $250,884 $32,989,776 FundBalance•July1.2002 $93,266,625 $0 $15,310,057 $50,156,514 ($72,217) $7,839,358 $166,500,337 PnorYearandFederalRevenueAdjustments (5.664,290! (12,425,773) (3,946,662) (47.211) (6.122.575) [28.206,511) FundBalance-June30.2003 $110321.207 $0 $3,236,486 $55,788,501 ($30,260) 51.967.667 $171,283,601 Theaccompanyingnotestothefinancialstatementsi iintegralpartofthisstatement PageA-4
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