HomeMy WebLinkAboutINDEPENDENT AUDITORS REPORTS I
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BLACK HAWK COUNTY
CRIMINAL JUSTICE INFORMATION SYSTEM
INDEPENDENT AUDITOR'S REPORTS
FINANCIAL STATEMENT AND
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FINDINGS
JUNE 30, 2006
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I0614-2501-BOOF
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Table of Contents
Page
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Officials
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Independent Auditor's Report
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Management's Discussion and Analysis
Exhibit
Financial Statement:
Statement of Cash Receipts, Disbursements and Changes in Cash Basis Net Assets A 12
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Notes to Financial Statement
Independent Auditor's Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of a Financial Statement Performed in Accordance with 15 16
Government Auditing Standards
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Schedule of Findings
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Staff
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1 Black Hawk County Criminal Justice Information System
Officials
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1 Name Title
Larry Feaker, Chief, La Porte City Police Department Board Chair
1 Richard Ahlstrom, Chief, Cedar Falls Police Department Board Vice Chair
Thomas Jennings, Chief, Waterloo Police Department Board Member
Mike Kubik, Black Hawk County Sheriff Board Member
] Barb Krizek, City of Waterloo representative Board Member
John Mardis, Mayor, City of Evansdale Board Member
Randy Weber, Acting Chief, Evansdale Police Department Board Member
Thomas Little, Black Hawk County Board of
Supervisors Appointee Board Member
Linda Nilges, First Judicial District Court Administrator Board Member
-Ii Janis Swanson Administrative Coordinator
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Black Hawk County Criminal Justice Information System
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_ „,„„, OFFICE OF AUDITOR OF STATE
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/ V' ,�'`s`,I��1,, STATE OF IOWA David A. Vaudt, CPA
e ¢ �1����
Auditor of State
�* « ,`.p *� State Capitol Building
���`.');�I -... oi'���� Des Moines,Iowa 50319 0004
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y�4`�F\OF 1 Telephone(515)281-5834 Facsimile(515)242-6134
Independent Auditor's Report
To the Members of the Black Hawk County
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Criminal Justice Information System:
We have audited the accompanying financial statement of the Black Hawk County Criminal
Justice Information System as of and for the year ended June 30, 2006. This financial statement
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is the responsibility of the System's management. Our responsibility is to express an opinion on
the financial statement based on our audit.
l We conducted our audit in accordance with U.S. generally accepted auditing standards 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 statement is free of
JI material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statement. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe our audit provides a reasonable basis for
JJour opinion.
As described in Note 1, this financial statement is prepared on the basis of cash receipts
and disbursements, which is a comprehensive basis of accounting other than U.S. generally
Jiaccepted accounting principles.
In our opinion, the financial statement referred to above presents fairly,,in all material
respects, the cash basis financial position of the Black Hawk County Criminal Justice Information
System as of June 30, 2006, and the changes in its cash basis financial position for the year then
ended in conformity with the basis of accounting described in Note 1.
In accordance with Government Auditing Standards, we have also issued our report dated
March 1, 2007 on our consideration of the Black Hawk County Criminal Justice Information
System's internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements and other matters. The purpose
i 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 financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
Management's Discussion and Analysis on pages 6 through 8 is not a required part of the
financial statement, but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the
supplementary information. We did not audit the information and express no opinion on it.
2Se.,:z aLcia„..Q4 .
II DAVID A. VAUDT, CPA WARREN JENKINS, CPA
Auditor of State Chief Deput Auditor of State
March 1, 2007
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MANAGEMENT'S DISCUSSION AND ANALYSIS
The Black Hawk County
Criminal Justice Information System provides this
Management's Discussion and Analysis of its financial statement.C�his innl rativee Ie erview t and
analysis of the financial activities of the Black Hawk County
System is for the fiscal year ended June 30, 00.financialstate ent We encourage
h reafol e rs,s to consider this
information in conjunction with the System's
2006 FINANCIAL HIGHLIGHTS
• Operating receipts decreased 14•71%, or 5,94 , from fiscal 2005 to fiscal
t Blast half of the City of Cedar
2006. The primary reason for the decrease is
Falls' assessment was not received until July 2006. Also, the City of Waterloo's
second half assessment was reduced because less equipment was purchased
than what was budgeted.
• Operating disbursements increased $1,525, or 1.00%, over fiscal 2005 to fiscal
2006.
Cash• u basis net as primarily to dcomputerrequipment purchases a June nd software
, 2005 to
June 30, 2006, due primarily
support during fiscal year 2006.
USING THIS ANNUAL REPORT
The System has elected to present its financial statement on the cash basis of accounting.
other than U.S.
The cash basis of accounting ls a , of accounting
f financial events are such as
accounting principles. Basis of accounting refe
the timing for basis frecognizing revou ting,, expenses and the related revenues and expenses and thets and related liabilities.
and liabilities
System's cash basis of accounting,
are recorded when they result from cash transactions.
As a result of the use of the cash basis of accounting, certain assets and their related
e not recorded
n this
revenues and liabilities reanviewing
their
nanciald expenses informat information discussion lwithin(this cial annualstatement.
r port,
Therefore, when reviewing
readers should keep in mind the limitations resulting from the use of the cash basis of
accounting.
The annual report is presented in a format consistent with the presentation
to the
of
Governmental Accounting Standards Board (GASB) Statement No. 34, as applicable
System's cash basis of accounting.
This discussion and analysis are intended to serve as an introduction to the financial
statement and other information, as follows:
• Management's Discussion and Analysis introduces the financial statement and
provides an analytical overview of the System's financial activities.
• The Statement of Cash Receipts, Disbursements and Changes in Cash Basis Net
Assets presents information on the System's operating receipts and
disbursements, non-operating receipts and disbursements and whether the
System's cash basis financial position has improved or deteriorated as a result
of the year's activities.
• The Notes to Financial Statement provide additional information essential to a
full understanding of the data provided in the financial statement.
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FINANCIAL ANALYSIS OF THE SYSTEM
Statement of Cash Receipts, Disbursements and Changes in Cash Basis Net Assets
I The purpose of the statement is to present the receipts received by the System and the
disbursements paid by the System, both operating and non-operating. The statement also
presents a fiscal snapshot of the System's cash basis balance at year end. Over time, readers of
I the financial statement are able to determine the System's cash basis financial position by
analyzing the increase and decrease in cash basis net assets.
Operating receipts are received for services provided the member agencies for their
computer information networks. The Black Hawk County Criminal Justice Information System
helps provide and maintain effective and efficient data processing operations to meet the
operational and management information needs of the criminal justice agencies. Operating
disbursements are disbursements paid to operate the information system. Non-operating receipts
1 and disbursements include interest on investments and equipment purchases. A summary of
cash receipts, disbursements and changes in cash balances for the years ended June 30, 2006
and 2005 is presented below:
Changes in Cash Basis Net Assets
Year ended June 30,
2006 2005
IAssessments from:
Black Hawk County $ 74,598 74,643
City of Waterloo 54,956 78,236
City of Cedar Falls 24,212 43,500
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City of Evansdale 18,987 19,000
City of La Porte City 3,927 4,178
Consolidated Communications Center participation:
Black Hawk County 10,445 9,828
City of Dunkerton 177 169
City of Gilbertville 177 169
City of Hudson 1,629 847
Refunds and reimbursements 19,334 13,818
Total operating receipts 208,442 244,388
Operating disbursements:
71 System operation:
-II Maintenance 15,785 3,514
Software support 47,855 40,239
-1 Training 7,508 5,274
Telephone lines
35,196 41,009
t ' Supplies 17,226 15,840
Contractual services 1,133 19,330
n Office operation:
F I Salaries and benefits 33,278 27,553
Professional services - 832
Other office operations 8,124 10,989
1 Total operating disbursements 166,105 164,580
Excess of operating receipts over operating disbursements 42,337 79,808
Non operating receipts (disbursements):
Interest on investments 2,274 2,192
t � Equipment (113,442) (74,505)
Total non-operating receipts (disbursements) (111,168) (72,313)
Change in cash basis net assets (68,831) 7,495
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:., Cash basis net assets beginning of year 121,338 113,843
Cash basis net assets end of year $ 52,507 121,338
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operatingreceipts decreased by $35,946, or 14.71%. The primary reason
In fiscalreasis the, la of Cedar Falls' assessment was not received until July
for the decrease is last half of the City
2006. Also, the City of Waterloo's second half assessment was reduced because less equipment
was purchased than what was budgeted.
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over fiscal
In fiscal 2006, operating disbursementsCAD increased
Black HawkS County and, or ,SQL and related05.
Major purchases include three servers for � (3) years. Shield Technology
licensing and installation. Servers are generally replaced every three
upgraded their software, increasing software disbursements for fiscal 2006.
DEBT ADMINISTRATION
At June 30, 2006, the System had no long-term debt outstanding.
ECONOMIC FACTORS
The Black Hawk County Criminal Justice Information evethe current condition of the economy
financial position during the current fiscal year.stem officials. Some of the realities that may
in the state continues to be a concern for Sy
potentially become challenges for the System to meet are:
• Computer equipment and software require constant maintenance and
updating.
• Technology continues to expand and current technology becomes outdated,
presenting an on going challenge to maintain up to date technology at a
reasonable cost.
The System anticipates the current fiscal year will
be
much
to react like e unknown elastand
will maintain
ues.
a close watch over resources to maintain theSystem's
THE SYSTEM'S FINANCIAL MANAGEMENT customers and
This financial report is designed to provide our citizens, taxpayers,
creditors with a general overview of the SY finances
about this to show report orhneed aSystedd tional financial
m's accountability
for the money it receives. If you have questions
information, contact Janis Swanson, Black Hawk County Criminal Justice Information System,
225 E. Sixth Street, Waterloo, Iowa 50703. Phone number is (319)-291-2680, Ext 250.
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Financial Statement
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Black Hawk County Criminal Justice Information System
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Financial Statement
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Exhibit A
Black Hawk County Criminal Justice Information System
Statement of Cash Receipts, Disbursements and
Changes in Cash Basis Net Assets
As of and for the year ended June 30, 2006
Operating receipts:
Assessments from:
Black Hawk County $ 74,598
City of Waterloo 54,956
City of Cedar Falls 24,212
City of Evansdale 18,987
City of La Porte City 3,927
Consolidated Communications Center participation:
Black Hawk County 10,445
City of Dunkerton 177
City of Gilbertville 177
City of Hudson 1,629
Refunds and reimbursements 19,334
Total operating receipts 208,442
Operating disbursements:
System operation:
Maintenance 15,785
Software support 47,855
Training 7,508
Telephone lines 35,196
Supplies 17,226
Contractual services 1,133
Office operation:
Salaries and benefits 33,278
Other office operations 8,124
Total operating disbursements 166,105
Excess of operating receipts over operating disbursements 42,337
Non operating receipts (disbursements):
Interest on investments 2,274
Equipment (113,442)
Total non-operating receipts (disbursements) (111,168)
Change in cash basis net assets (68,831)
Cash basis net assets beginning of year 121,338
Cash basis net assets end of year $ 52,507
Cash Basis Net Assets
Unrestricted $ 52,507
See notes to financial statement.
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Black Hawk County Criminal Justice Information System
Notes to Financial Statement
June 30, 2006
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(1) Summary of Significant Accounting Policies
The Black Hawk County Criminal Justice Information System is a multi-agency computer
information network established and maintained through a 28E Agreement entered into
by the participating criminal justice agencies and their respective units of local
government. The Board of Directors has been established to provide and maintain
effective and efficient data processing operations to meet the operational and
management information needs of the criminal justice agencies. The participating
criminal justice agencies are:
Black Hawk County Sheriffs Department
Cedar Falls Police Department
Evansdale Police Department
Waterloo Police Department
La Porte City Police Department
A. Reporting Entity
For financial reporting purposes, the Black Hawk County Criminal Justice
Information System has included all funds, organizations, agencies, boards,
commissions and authorities. The System has also considered all potential
component units for which it is financially accountable and other organizations
1 for which the nature and significance of their relationship with the System are
such that exclusion would cause the System's financial statement to be
misleading or incomplete. The Governmental Accounting Standards Board has
set forth criteria to be considered in determining financial accountability. These
criteria include appointing a voting majority of an organization's governing body
and (1) the ability of the System to impose its will on that organization or (2) the
potential for the organization to provide specific benefits to or impose specific
financial burdens on the System. The System has no component units which
meet the Governmental Accounting Standards Board criteria.
B. Basis of Presentation
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The accounts of the System are organized as an Enterprise Fund. Enterprise
Funds are utilized to finance and account for the acquisition, operation and
ji maintenance of governmental facilities and services supported by user charges.
Enterprise Funds distinguish operating receipts and disbursements from non-
operating items. Operating receipts and disbursements generally result from
providing services and producing and delivering goods in connection with an
Enterprise Fund's principal ongoing operations. All receipts and disbursements
not meeting this definition are reported as non-operating receipts and
disbursements.
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C. Basis of Accounting
The Black Hawk County Criminal Justice Information System maintains its
financial records on the basis of cash receipts and disbursements and this .1
financial statement of the System is prepared on that basis. The cash basis of -t
accounting does not give effect to accounts receivable, accounts payable and rt
accrued items. Accordingly, the financial statement does not present the financial
position and results of operations of the System in accordance with U.S. generally `k
accepted accounting principles.
(2) Cash and Investments
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The System's deposits at June 30, 2006 and throughout the fiscal year were held in e.-
credit union in amounts in excess of the amount covered by federal depository insurance`
The System maintained an appropriate letter of credit as security for the excess deposits:
in accordance with Chapter 12C of the Code of Iowa.
The System is authorized by statute to invest public funds in obligations of the United
States government, its agencies and instrumentalities; certificates of deposit or othe
evidences of deposit at federally insured depository institutions approved by the System
prime eligible bankers acceptances; certain high rated commercial paper; perfected;
repurchase agreements; certain registered open-end management investment companies„
certain joint investment trusts; and warrants or improvement certificates of a drainage
district.
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The System had no investments meeting the disclosure requirements of Governmental
Accounting Standards Board Statement No. 3, as amended by Statement No. 40.
(3) Pension and Retirement Benefits
The Black Hawk County Criminal Justice Information System contributes to the Iowa.:`
Public Employees Retirement System (IPERS) which is a cost-sharing multiple-employer
defined benefit pension plan administered by the State of Iowa. IPERS provide
retirement and death benefits which are established by state statute to plan members
and beneficiaries. IPERS issues a publicly available financial report that includesL
financial statements and required supplementary information. The report may be}
obtained by writing to IPERS, P.O. Box 9117, Des Moines, Iowa, 50306-9117.
Plan members are required to contribute 3.70% of their annual covered salary and the
System is required to contribute 5.75% of annual covered payroll for the years ended;
June 30, 2006, 2005 and 2004. Contribution requirements are established by state
statute. The System's contributions to IPERS for the years ended June 30, 2006, 2005
and 2004 were $1,431, $1,382 and $1,337 respectively, equal to the required
contributions for each year.
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(4) Risk Management
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The Black Hawk County Criminal Justice Information System is exposed to various risks
of loss related to torts; theft, damage to and destruction of assets; errors and omissions;
injuries to employees; and natural disasters. These risks are covered by the purchase of
commercial insurance. The System assumes liability for any deductibles and claims in
excess of coverage limitations. Settled claims from these risks have not exceeded E'
commercial insurance coverage in any of the past three fiscal years.
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1 _______...„„,
OFFICE OF AUDITOR OF STATE
FOR 9,Fs�N4 STATE OF IOWA
..:t I- �\? +#� David A.Vaudt,CPA
�� t`yA��� Auditor of State
i i\ � �*% State Capitol Building
i* �` 1CfIf,
i�tc!>�.I o- ,4- Des Moines,Iowa 50319-0004
y��4 TFF ��� Telephone(515)281-5834 Facsimile(515)242-6134
Independent Auditor's Report on Internal Control
over Financial Reporting and on Compliance and Other Matters
Based on an Audit of a Financial Statement Performed in Accordance with
Government Auditing Standards
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To the Officials of the Black Hawk County
Criminal Justice Information System:
We have audited the accompanying financial statement of the Black Hawk County Criminal
Justice Information System as of and for the year ended June 30, 2006, and have issued our
report thereon dated March 1, 2007. Our report expressed an unqualified opinion on the
financial statement which was prepared in conformity with an other comprehensive basis of
accounting. We conducted our audit in accordance with U.S. generally accepted auditing
1 standards and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Black Hawk County Criminal
_ Justice Information System's internal control over financial reporting in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial statement and not
to provide an opinion on the internal control over financial reporting. Our consideration of the
internal control over financial reporting would not necessarily disclose all matters in the internal
l control over financial reporting that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components does
not reduce to a relatively low level the risk that misstatements in amounts that would be material
j in relation to the financial statement being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions. We noted no
matters involving the internal control over financial reporting and its operations that we consider
to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Black Hawk County Criminal
. Justice Information System's financial statement is free of material misstatement, we performed
tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, non-compliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of non-compliance or other matters
required to be reported under Government Auditing Standards.
Comments involving statutory and other legal matters about the System's operations for the
year ended June 30, 2006 are based exclusively on knowledge obtained from procedures
performed during our audit of the financial statement of the System. Since our audit was based
on tests and samples, not all transactions that might have had an impact on the comments were
necessarily audited. The comments involving statutory and other legal matters are not intended
to constitute legal interpretations of those statutes. .
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This report, a public record by law, is intended solely for the information and use
of the
P Criminal Justice Information System
members and customers of the Black Hawk County
partiesd
to whom the System may report. This report is not intended to be and should not be
other
used by anyone other than these specified parties.
Justice Information System during the course of
We would like to acknowledge the man Just courtesies and assistance extended to us
s1 be
personnel of the Black Hawk County Criminalwe shall questions concerning any of the above matters,
our audit. Should you have any
pleased to discuss them with you at your convenience.
of State CPA WARREN ��' JENHINS, CPA
DAVID A. VA fJ Chief Depu Auditor of State
Auditor o
March 1, 2007
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Black Hawk County Criminal Justice Information System
I Schedule of Findings
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Year ended June 30, 2006
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Findings Related to the Financial Statement:
REPORTABLE CONDITIONS:
No matters were noted.
INSTANCES OF NON-COMPLIANCE:
11 No matters were noted.
Findings Related to Required Statutory Reporting:
(1) Questionable Disbursements - No disbursements we believe may not meet the
requirements of public purpose as defined in an Attorney General's opinion dated
IApril 12, 1979 were noted.
(2) Travel Expense - No disbursements of System money for travel expenses of spouses of
11 System officials or employees were noted.
(3) Board Minutes - No transactions were found that we believe should have been approved in
the System's minutes but were not.
ii (4) Deposits and Investments - No instances of non-compliance with the deposit and pooled
investment provisions of Chapters 12B and 12C of the Code of Iowa and the System's
investment policy were noted.
(5) Business Transactions - No business transactions between the System and System
officials or employees were noted.
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Black Hawk County Criminal Justice Information System
Staff
This audit was performed by:
Steven M. Nottger, CPA, Manager
Shawn R. Elsbury, Staff Auditor
Andrew E. Nielsen, CPA
Deputy Auditor of State
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