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State of New Mexico Administrative Office of the Courts Financial Statements June 30, 2014

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State of New Mexico Administrative Office of the Courts Financial Statements June 30, 2014 STATE OF NEW MEXICO ADMINISTRATIVE OFFICE OF THE COURTS FINANCIAL STATEMENTS JUNE 30, 2014 STATE OF NEW MEXICO ADMIINSTRATIVE OFFICE OF THE COURTS TABLE OF CONTENTS INTRODUCTORY SECTION Official Roster ............................................................................................................................................................ 1 FINANCIAL SECTION Report of Independent Auditors ................................................................................................................... 2-4 Management Discussion and Analysis ..................................................................................................... 5-13 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ........................................................................................................................... 14 Statement of Activities ................................................................................................................................. 15 Fund Financial Statements Balance Sheet ............................................................................................................................................ 16-17 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position ............................................................................ 18 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................................................................................................... 19-20 Reconciliation of the Changes in Fund Balances of Government Funds to the Statement of Activities ................................................................................................... 21 Statement of Revenues and Expenditures Budget and Actual (non-GAAP Budgetary Basis) - Major Budgeted Funds ........................................................ 22-31 Statement of Fiduciary Assets and Liabilities – Agency Fund .................................................... 32 Notes to Financial Statements .................................................................................................................. 33-64 i TABLE OF CONTENTS STATE OF NEW MEXICO ADMIINSTRATIVE OFFICE OF THE COURTS TABLE OF CONTENTS SUPPLEMENTARY INFORMATION Combining Balance Sheet – All Non-Major Funds ............................................................................ 65-66 Combining Statement of Revenue, Expenditures and Changes in Fund Balance – All Non-Major Funds .................................................................. 67-68 Statement of Revenues and Expenditures Budget and Actual Capital Projects Fund (89200) .............................................................................................................. 69 Magistrate Drug Court Fund (11600) ................................................................................................ 70 Magistrate Court Operations Fund (11120) ................................................................................... 71 Municipal Court Automation Fund (12600) ................................................................................... 72 Judges Pro Tempore Fund (13600) .................................................................................................... 73 Magistrate Court Mediation Fund (30400) ..................................................................................... 74 Metropolitan and Magistrate Court Capital Fund (49600) ....................................................... 75 Judicial Performance Evaluation Fund (58300) ............................................................................ 7 6 Judicial Information Division Fund (68900) ................................................................................... 77 Combining Statement of Changes in Assets and Liabilities – All Agency Funds ....................................................................................................... 78 Combining Statement of Changes in Assets and Liabilities – All Agency Funds (Detail) ...................................................................................... 79 Schedule of Cash Accounts ......................................................................................................................... 80-86 Schedule of Memorandums of Understanding ................................................................................... 87-89 ii STATE OF NEW MEXICO ADMIINSTRATIVE OFFICE OF THE COURTS TABLE OF CONTENTS OTHER REPORTS Schedule of Expenditures of Federal Awards .................................................................................... 90-91 OTHER REPORTS Independent Auditor’s 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 ............................................ 92-93 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance required by OMB Circular A-133 .................................... 94-95 Schedule of Findings and Questioned Costs .................................................................................... 96-113 Summary Schedule of Prior Audit Findings ............................................................................................... 97 Exit Conference ................................................................................................................................................................................. 114 iii STATE OF NEW MEXICO ADMINISTRATIVE OFFICE OF THE COURTS Official Roster June 30, 2014 ADMINISTRATIVE OFFICIALS Name Title Honorable Barbara J. Vigil Chairperson Arthur W. Pepin Director Patrick J. Simpson Deputy Director Oscar J. Arevalo Director of Fiscal Services Lynette Pulman-Rodriguez Director of Human Resources Karen Janes Director of Magistrate Courts Steve Prisoc Director of Judicial Information Louise Baca-Sena Director of Special Court Services 1 Serving clients since 1972 David G. Zlotnick Asa Laws Richard D. Sandoval INDEPENDENT AUDITOR’S REPORT Hector H. Balderas New Mexico State Auditor Santa Fe, New Mexico and Honorable Barbara J. Vigil, Chairperson Administrative Office of the Courts Santa Fe, New Mexico Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information, and the budgetary comparisons for the general fund and major special revenue funds of the State of New Mexico, Administrative Office of the Courts (AOC), as of and for the year ended June 30, 2014, and the related notes to the financial statements which collectively comprise the AOC’s basic financial statements as listed in the table of contents. We also have audited the financial statements of each of the AOC nonmajor governmental funds and the budgetary comparisons for the major capital project funds and all nonmajor funds presented as supplementary information 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, 2014, 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. Auditor’s 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. 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. 2 1 Calle Medico . Santa Fe, New Mexico 87505 . telephone (505) 982-3894 . fax (505) 982-3818 . www. zlscpa.com We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements
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