Firm raises issue with Texico report

TEXICO — The Albuquerque agency that was employed to audit the books of the town of Texico has taken problem with the town in a 50-page report issued in July and reported to New Mexico State Auditor Brian Colon.

Rice and Associates, an authorized public accountant agency, listed about 40 situations of points with an audit of Texico’s books.

A number of the points have been resolved, some have been given a goal date for decision.

What does the report from Rice and Associates imply to the town?

“We’re nonetheless financially solvent,” Metropolis Clerk Carolyn Johnson mentioned.

Johnson mentioned there are some things to right “and we’re engaged on that.”

“It’s only a course of,” Johnson mentioned.

The report outlines that Texico city administration is liable for the preparation and honest presentation of the monetary statements in accordance with accounting rules “typically accepted within the USA.”

Rice and Associates outlined their accountability is to precise opinions on these monetary statements primarily based on their audit.

“We carried out our audit in accordance with accounting rules typically accepted within the USA,” they wrote. “And the requirements relevant to monetary audits contained in Authorities Auditing Requirements.”

Rice and Associates go on to element the correct method to do a report.

The Rice auditors proceed to explain the state of affairs with the audit for Texico writing, “Due to the importance of the matter … now we have not been in a position to acquire enough acceptable audit proof to offer a foundation for an audit opinion.”

Rice and Associates wrote that Texico “has omitted administration’s dialogue and evaluation.”

They write the lacking data whereas not a part of the fundamental monetary statements is required by the Governmental Accounting Requirements Board who contemplate it to be a necessary a part of the monetary reporting.

The Rice report goes on to notice the accounting agency recognized sure deficiencies in inside management which might be thought of to be materials weaknesses and important deficiencies.

A number of the findings: Finances overruns, late audit stories, financial institution reconciliations not full, payroll liabilities and transactions made by third events not recorded on books of report.

There have been additionally incomplete worker information, board assembly minutes not accepted, incorrect senior residents federal tax identification quantity, allowance for uncertain accounts, expenditures paid out of mistaken fund and no assist for insurance coverage billing.

The report contained pages the place the issue was recognized as was the trigger, impact, suggestion and Texico’s response.

As an example, one “materials weak spot” was the town couldn’t present an entire capital asset itemizing and depreciation schedule for the fiscal 12 months ending June 30, 2020.

Rice and Associates of their report wrote this was attributable to metropolis administration counting on auditors to organize this schedule and subsequently metropolis administration will not be complying with “typically accepted accounting rules.”

Texico took motion on this by paying an accountant in 2019 to make a capital asset checklist that must be finished by the tip of this month.

A matter that was listed by Rice and Associates as a “important deficiency” are funds overruns.

Texico’s common fund was overspent by $54,291, with a $99,318 overrun on the streets fund, $310 on the corrections fund, $30,504 on the Ute Fund and $1,255 within the cemetery fund.

State regulation requires all funds to be spent inside the established pointers set for budgets.

Rice and Associates really useful the town ought to assessment its funds quarterly and request all funds changes at the moment to make sure funds overruns don’t happen.

Within the report it was famous the town clerk introduced issues into compliance by the tip of July this 12 months.