Attached for your acceptance is the final audit report of the Air Quality Management District (District) for the year ending June 30, 2016, and the Statement on Auditing Standards. The audit was performed by Hathaway & Ksenzulak, LLP.
The Air Quality Management District is administered under a Memorandum of Understanding (MOU) with the Department of Resource Management. State law requires that the District have periodic audits.
The Department of Resource Management circulated a Request for Proposals in June of 2015, for compliance and performance audits for the fiscal years ending in June 30, 2015; June 30, 2016; and June 30, 2017. In October 2015, after review of the proposals, based on the lowest qualifying bid your Board awarded Hathaway, Ksenzulak and Lapp, LLP the contract for the compliance and performance audit services for the fiscal years ending in 2015, 2016, and 2017.
The audit field work has been performed for the year ending June 30, 2016, and the final audit report has been issued. The auditors have issued an unqualified or “clean” opinion for the audits performed. The auditors have recommended the District develop review procedures at year-end to determine that the trial balance accurately reflects all transactions during the fiscal year. The audit called out a reporting deficiency regarding a portion of a software system (TRAKiT) that is being purchased that should have had its first payment capitalized and not expensed. The Shasta County Auditor is currently working on a software capitalization policy, this policy will include the TRAKiT software program.