Office of the Auditor-Controller

Responses to Grand Jury Report

Los Alamos Community Services District

Released March 23, 1999

 

 

 

Finding #4

 

Grand Jury Finding:

The Santa Barbara County Auditor-Controller is not required to review, on a regular basis, audited financial reports submitted by independent special districts.

 

Auditor-Controller Response:

The Auditor-Controllerís office agrees with the finding.

 

Recommendation #4

 

Grand Jury Recommendation:

The Auditor-Controller should review the financial reports submitted by all independent special districts and, when a letter of going concern accompanies any statement, the Auditor-Controller should issue a public notice regarding the financial position of the district.

 

Auditor-Controller Response:

The recommendation has not been implemented, but will be implemented beginning with financial statements for the year ended June 30, 1998. Government Code section 26909 requires that audited financial statements for special districts be performed and a copy provided to the Auditor-Controller no later than one year following the end of the fiscal year. The Auditor-Controller will annually file a report with the Board of Supervisors when all district audits have been received or no later than 30 days following the end of the one-year audit deadline.

 

The report will include District compliance with the government code requiring an annual audit report. The report will also include a discussion and public disclosure of entities that receive independent audit opinions that are not unqualified opinions or opinions that include issues that could affect the going concern of the entity.