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Lac Qui Parle County Financial Statements and Management Letter

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Lac Qui Parle County Financial Statements and Management Letter STATE OF MINNESOTA Office of the State Auditor Rebecca Otto State Auditor LAC QUI PARLE COUNTY MADISON, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 Description of the Office of the State Auditor The mission of the Office of the State Auditor is to oversee local government finances for Minnesota taxpayers by helping to ensure financial integrity and accountability in local governmental financial activities. Through financial, compliance, and special audits, the State Auditor oversees and ensures that local government funds are used for the purposes intended by law and that local governments hold themselves to the highest standards of financial accountability. The State Auditor performs approximately 160 financial and compliance audits per year and has oversight responsibilities for over 3,300 local units of government throughout the state. The office currently maintains five divisions: Audit Practice - conducts financial and legal compliance audits of local governments; Government Information - collects and analyzes financial information for cities, towns, counties, and special districts; Legal/Special Investigations - provides legal analysis and counsel to the Office and responds to outside inquiries about Minnesota local government law; as well as investigates allegations of misfeasance, malfeasance, and nonfeasance in local government; Pension - monitors investment, financial, and actuarial reporting for approximately 730 public pension funds; and Tax Increment Financing - promotes compliance and accountability in local governments’ use of tax increment financing through financial and compliance audits. The State Auditor serves on the State Executive Council, State Board of Investment, Land Exchange Board, Public Employees Retirement Association Board, Minnesota Housing Finance Agency, and the Rural Finance Authority Board. Office of the State Auditor 525 Park Street, Suite 500 Saint Paul, Minnesota 55103 (651) 296-2551 [email protected] www.auditor.state.mn.us This document can be made available in alternative formats upon request. Call 651-296-2551 [voice] or 1-800-627-3529 [relay service] for assistance; or visit the Office of the State Auditor’s web site: www.auditor.state.mn.us. LAC QUI PARLE COUNTY MADISON, MINNESOTA For the Year Ended December 31, 2013 Audit Practice Division Office of the State Auditor State of Minnesota This page was left blank intentionally. LAC QUI PARLE COUNTY MADISON, MINNESOTA TABLE OF CONTENTS Exhibit Page Introductory Section Organization Schedule - Lac qui Parle County 1 Organization Schedule - Lac qui Parle-Yellow Bank Watershed District 2 Financial Section Independent Auditor’s Report 3 Management’s Discussion and Analysis 6 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 1 18 Statement of Activities 2 19 Fund Financial Statements Governmental Funds Balance Sheet 3 21 Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position--Governmental Activities 4 23 Statement of Revenues, Expenditures, and Changes in Fund Balance 5 24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Government-Wide Statement of Activities--Governmental Activities 6 25 Fiduciary Funds Statement of Fiduciary Net Position 7 26 Notes to the Financial Statements 27 Required Supplementary Information Budgetary Comparison Schedules General Fund A-1 73 Special Revenue Funds Road and Bridge Fund A-2 76 Family Services Fund A-3 77 Ditch Fund A-4 78 Schedule of Funding Progress - Other Postemployment Benefits A-5 79 Notes to the Required Supplementary Information 80 LAC QUI PARLE COUNTY MADISON, MINNESOTA TABLE OF CONTENTS Exhibit Page Financial Section (Continued) Supplementary Information Fiduciary Funds Agency Funds 82 Combining Statement of Changes in Assets and Liabilities - All Agency Funds B-1 83 Other Schedules Schedule of Intergovernmental Revenue C-1 85 Schedule of Expenditures of Federal Awards C-2 87 Notes to the Schedule of Expenditures of Federal Awards 89 Lac qui Parle-Yellow Bank Watershed District Statement of Net Position D-1 91 Statement of Activities D-2 92 Governmental Funds Balance Sheet D-3 93 Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position--Governmental Activities D-4 94 Statement of Revenues, Expenditures, and Changes in Fund Balance D-5 95 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Government-Wide Statement of Activities--Governmental Activities D-6 96 Budgetary Comparison Schedule - General Fund D-7 97 Budgetary Comparison Schedule - Ditch Fund D-8 98 Management and Compliance Section Schedule of Findings and Questioned Costs 99 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 110 Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance 113 Introductory Section This page was left blank intentionally. LAC QUI PARLE COUNTY MADISON, MINNESOTA ORGANIZATION SCHEDULE LAC QUI PARLE COUNTY 2013 Office Name Term Expires Commissioners 1st District Todd Patzer January 2017 2nd District DeRon Brehmer January 2015 3rd District Graylen Carlson* January 2017 4th District Terrence Overlander** January 2015 5th District Roy Marihart January 2017 Officers Elected Attorney Richard Stulz January 2015 Coroner Ralph Gerbig, M.D. January 2015 Sheriff Rick Halvorson January 2015 Appointed Auditor-Treasurer-Coordinator Jacob Sieg Indefinite Assessor Lori Schwendemann Indefinite Environmental Officer Jennifer Breberg Indefinite Highway Engineer Steve Kubista Indefinite Recorder Josh Amland Indefinite Veterans’ Service Officer Josh Beninga Indefinite Welfare Board Commissioner Todd Patzer January 2017 Commissioner DeRon Brehmer January 2015 Commissioner Graylen Carlson January 2017 Commissioner Terrence Overlander January 2015 Commissioner Roy Marihart January 2017 Member Ann Jenson July 2015 Member Mary Wodrich July 2016 Director Joel Churness Indefinite *Chair 2013 **Chair 2014 Page 1 LAC QUI PARLE COUNTY MADISON, MINNESOTA ORGANIZATION SCHEDULE LAC QUI PARLE-YELLOW BANK WATERSHED DISTRICT BOARD OF MANAGERS 2013 Position Name Term Expires Manager Chair Darrel Ellefson March 2015 Vice Chair Willis Beecher March 2015 Treasurer David Ludvigson March 2014 Secretary David Craigmile March 2016 Publicity Chair John Cornell March 2015 Staff Administrator Trudy Hastad Indefinite Park Manager Ron Fjerkenstad Indefinite Attorney Steve Torvik Indefinite Clean Water Coordinator Mary Homan Indefinite Page 2 Financial Section This page was left blank intentionally. STATE OF MINNESOTA OFFICE OF THE STATE AUDITOR SUITE 500 525 PARK STREET (651) 296-2551 (Voice) (651) 296-4755 (Fax) REBECCA OTTO SAINT PAUL, MN 55103-2139 [email protected] (E-mail) STATE AUDITOR 1-800-627-3529 (Relay Service) INDEPENDENT AUDITOR’S REPORT Board of County Commissioners Lac qui Parle County Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Lac qui Parle County, Minnesota, as of and for the year ended December 31, 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. 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 misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Lac qui Parle County Economic Development Authority, which represents 4 percent, 3 percent, and 31 percent, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Lac qui Parle County Economic Development Authority, is based solely on the report of the other auditors. 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 of 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 Page 3 An Equal Opportunity Employer error. In making those risk assessments, the auditor considers internal control
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