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Finance - FY 11-12 audit report - 5-27-13PUBLISHER'S AFFIDAVIT OF PUBLICATION THE STATE OF TEXAS, County of Walker I, Rita Haldeman, of the aforesaid County and State, do solemnly swear that I am the Publisher of The Huntsville Item, a daily newspaper of general circulation which has been continuously and regularly published at Huntsville, Walker County, Texas, and is a legal newspaper and the attached notice was published in said newspaper. City of Huntsville 1 consecutive/subsquent dates previous to the return day therof to wit: On 27 -May 2013 On 2013 On 2013 On 2013 On 2013 On 2013 On 2013 On Subscribed and sworn to this 28th (Seal) 2013 Publisher day of May 2013 Notary Public, Walker County, Texas NINA HANSEN My Commission Expires 1 January 27, 2017 5/23/13 Print From: Lee Woodward (LWoodward@huntsvilletx.gov) To: nina2hansen(cyahoo.com; Date: Thu, May 23, 2013 2:20:51 PM Subject: FW: Word version of Independent Auditors' Report Okay, Nina, please price and size this for me, doesn't have to be in legal or regular, just what's most affordable! Thank you! Lee On May 21, 2013, the firm of Pattillo, Brown & Hill, L.L.P. presented the following statement to the Huntsville City Council regarding the annual financial report ("audit ") for the fiscal year ending September 30, 2012. City Charter Section 11.16 requires printing of the annual audit results in the newspaper. — Lee Woodward, City Secretary We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Huntsville, Texas (the "City"), as of and for the year ended September 30, 2012, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. 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 City as of September 30, 2012, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated May 20, 2013, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions ()flaws, regulations, contracts, grants, 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 our financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and 1/3 5/23/13 Print Actual—General Fund, the Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual—Street Fund, the Schedule of Funding Progress for Participation in the Texas Municipal Retirement System, and the Schedule of Funding Progress — Post -Retirement Health Care Plan 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 infonmation 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. Our audit was conducted for the purpose of fonning opinions on the financial statements that collectively comprise the City's financial statements as a whole. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of' States, Local Governments, and Nonprofit Organizations, and is also not a required part of the financial statements. The combining and individual fund statements and schedules and the Schedule of Expenditures of Federal Awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. The material in this e-mail is intended only for the use of the individual to whom it is addressed and may contain information that is confidential, privileged, and exempt from disclosure under applicable law. If you are not the intended recipient, be advised that the unauthorized review, use, disclosure, duplication, distribution, or the taking of any action in reliance on this information is strictly prohibited. If you have received this e-mail in error, please notify the sender by return email and destroy all electronic and paper copies of the original message and any attachments immediately. Please note that neither City of Huntsville nor the sender accepts any responsibility for viruses and it is your responsibility to scan attachments (if any). Thank you. [v.l.e] 2/3 LOIIvur cord, )erience y Night, e Pay tal INS 401K spatch 2870 RENTALS 1/1 Quiet Country Setting NO PETS $400/dep $325/mo 936-433.6718 LEGAIS IV1 rVv rc.o $400/dep $500/mo 936-433-6718 Efficiency Special Water, garbage, sewer & TV pd. $395/mo 294-9973 or 291-9943 LEGAi.S New CA/CH AVAILABLE NOW! Rex Realty 936-295-2090 LEGALS and garbage paid CALL 936-295-7006 IEGALS {VICE &, iic War4 On May 21, 2013, the firm of Pattillo, Brown & management's discussion and analysis, the r DL. Hill, L.L.P. presented the following statement to Schedule of Revenues, Expenditures and .9292 the Huntsville; City Council regarding the annual Changes in Fund Balance—Budget and financial report ("audit') for the fiscal year Actual—General Fund, the Schedule of ending September 30, 2012. City Charter Revenues, Expenditures and Changes in Fund `Section 11.16 requires printing of the annual Schedule Budof ett and Funding Actual—Strogressr Part c Fund,reet the audit results in the newspaper.– ' on Lee Woodward, City Secretary ' in the Texas. Municipal Retirement System, and the Schedule of Funding Progress – Post- We have audited the accompanying financial HealthRetirementt e Care PPlan best presented to statements ' of the governmental activities, the supSuch invent then, althoughc financial not a pemonthe business -type activities, the discretely presented'component unit, each major fund basic financial Governmental Accounting ands, is required by the g Standards Board, the aggregate remaining fund information of the who considers it to be an essential part of City of Huntsville, Texas (the "City"), as of and financial reporting for placing the basic financial for the year ended September 30, 2012, which statements in an appropriate operational, collectively comprise the City's basic financial economic, ort r hi historical d procedures context. We to the statements as listed in the table of contents. applied These financial sfaterpnts are the responsibili- rmation in required ance with auditing sry tandards generally of the City's: management. Our responsibility is 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 TERNS TANTS OF THE IP HOME ERS 3 A 'UNITY 'O EARN. YOU 1, BOUT STATE CEIVE: ensive program. tional isation mtives ire in. re Sales Lavine e-mail ne & ;history fence to: scb@ Loin Baptist ring for Mornings inesday rings apply nat.2517 ston Ave. ITED in Barber Mg for a ed Hair itter without ntele - Saturday 5:30 p.m. ing skills required, be taught. ) 355-9187 nteryiew. t a chair 1 shop. to express opinions on these financial statements based on our audit. We conducted our aLi`dit in accordance with, auditing standards generally accepted in the management's responses to our inquiries, the United States of America and the standards basic financial statements, and other knowl- applicable to financial audits contained in edge 'Government Auditing Standards, issued by the we obtained during our audit of the basic Comptroller General of the United States. financial statements. We do not express an Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. ing on a test basis i sing your lei., the Item 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. An audit includes examlrn , . evidence supporting the amounts and Our audit was conducted: for the purpose of disclosures in the financial statements. An audit forming opinions on the financial statements also includes assessing the accounting that collectively comprise the City's financial principles used and the significant estimates statements as.a whole. The introductory made by management, as well as evaluating section, combining and individual nonmajor the overall financial statement presentation. We fund believe that our audit provides a reasonable financial tsectiontepts presented schedul fes purposes nsof basis for our opinions. additional analysis and are not a required part In our opinion, the financial statements referred of the financial statements. The accompanying to above present fairly, in all material respects, Schedule huleffExpenditures of of additionalederal analysisrds is ss the ern respective fiactivities, esal pheition inf theess- required U. S. Office of. Management and governmental activities, the business-typeby activities, each major fund and the aggregate Budget Circular A-133, Audits of States, Local remaining fund information of the City as of Governments, and Nonprofit Organizations, and September 30, 2012, and the respective is also not a required part of the financial changes in financial position and cash flows, statements. The combining and individual fund where applicable, thereof for the year then statements and schedules and the Schedule or, ended in conformity with accounting principles Expenditures of Federal Awards are the generally accepted in the United States of respnsibfrom oand Irelate directlylity of tthe underlying ement and were derived' and accounting and other records used to prepare the financial statements. The information has , been subjected to the auditing procedures ' applied in the audit of thefinancial statements and certain additional.. procedures, including America. In accordance with Government Auditing Standards, we have also issued our report dated May 20, 2013, on our consideration of City's internal control over financial reporting comparing and reconciling such information the g untin and our tests of its compliance with certain directly to the too prepare the onann gland other provisions of laws, regulations, contracts, grants,. and other matters. The purpose of that statements or to the financial statements report is to describe the scope of our testing of themselves, and other additional procedures in internal control over financial reporting and accordance with auditing standards generally compliance and the results of that testing, and accepted in the United States of America. In not to provide an opinion on the internal control our opinion, the information is fairly stated in all over our financial reporting or on compliance. material respects in relation to the financial That report is an integral part of an audit statements as a whole. The introductory and performed in accordance with Government • statistical sections have not been subjected to Auditing Standards and should be read in the auditing procedures applied in the audit of conjunction with this report in considering the wethe dobasic express statements or s and, paccordn gly, results of our: audit. Accounting principles generally accepted in the assurance on it. 5-27