Maverick County’s 2012-2013 Audit remains unfinished
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
Maverick County Commissioners Court held a special meeting on Tuesday, December 16, 2014, at the Maverick County Courthouse in Eagle Pass, Texas, addressing several agenda items including a status report on the Maverick County’s 2012-2013 Audit.
Commissioners Court feud with Maverick County Auditor Fidencio Ortiz took another turn and twist at the December 16th meeting. County Auditor Ortiz was not present at the meeting due to a previous personal commitment in San Antonio, Texas.
Agenda Item No. 9 called for the discussion and possible action on presentation by Martinez, Rosario & Company, LLP, on status of Maverick County Audit.
Certified Public Accountant Milo Martinez of San Antonio told Commissioners Court that Maverick County’s 2012-2013 Audit completion date will be running late by approximately seven months from the alleged agreed upon date due to certain issues involving the County Auditor’s office and the inability to get the proper documentation from the County Auditor’s office to begin work on the audit.
“We had discussions with the County Auditor office in May 28,2014 in regards to timelines and we got a confirmation that they would have the books closed and ready for audit on July 31, 2014,” said Martinez.
“I didn’t get any specific communication responding to our request but we did begin to receive documentation regarding the audit starting on September 2, 2014. We continued to receive documents throughout the month. But I did ask when are we going to get everything we need to get to the 90% threshold and when are we going to get to trial balance. Again we didn’t get any specific response but we did get trial balance on the 23rd,” said Martinez. Martinez further stated that at that point they were now almost 60 days off the set date of July 31, 2014.
“We then received emails from County Auditor Ortiz asking when we were going to get started. When the county didn’t have record ready we had other commitments we had scheduled so we were busy with that scheduling. Until we received the information on the 23rd , I did not know when that information was going to be made available so we had not been able to schedule anything,” said Martinez.
Martinez then stated that they began to do some type of analysis but that he notified County Auditor Ortiz that due to their late response and scheduling conflicts that the audit was going to be late, pushing the completion date and presentation until at least late February or early March of 2015, a three month difference as scheduled prior to those issues coming up.
During discussion, Assistant County Auditor Karla Mazuka advised Commissioners Court and Martinez that the Audit contract between Maverick County and Martinez’s auditing firm had not been finalized and signed by both parties until September 2014, causing part of the delay complained of by Martinez. Mazuka stated that the County Auditor’s office had not sent any information to Martinez until he signed and finalized the auditing contract and information was immediately sent to Martinez’s auditing firm upon execution of the contract. Mazuka added that the County Auditor’s office waited until they received the Dropbox password that had been set up to deliver the requested information upon Martinez’s signing of the auditing contract with the County.
Commissioner Ruiz questioned Martinez on the amount of time needed before completing the audit. “I don’t know if you know, but we have gotten into trouble with state and federal agencies because our audit has not yet been presented,” said Ruiz. “When is it supposed to be ready,?” asked Ruiz.
Martinez replied that the deadline generally is nine months after the end of a fiscal year.
According to state law, a County’s audit is due by no later than March 1st after the end of a fiscal year. In the case of Maverick County, the 2012-2013 Audit was due to the State of Texas by no later than March 1, 2014.
Ruiz asked Martinez what percentage of the audit is completed. Martinez answered that the request they had initially had asked for to get started had been presented along with some supplemental request as well. Martinez reiterated that due to the fact that the information requested was off at least by 60 days that the completion date was being pushed further from the original set date of completion and presentation to Commissioners Court.
Ruiz asked what was the problem. “I don’t know why it takes a year to close your books. I do not know,” said Martinez.
Ruiz stated that County Auditor Ortiz previously claimed that it was Martinez’s office that was taking so long.
“We don’t close the books. We just come and check them to see if they are right and of there are any adjustments that need to be made,” said Martinez.
Martinez then stated that the commitment was made by the auditor’s office to have the information by July 31, 2014. “We sent them the list back in May,” said Martinez.
“The dispute over payment has never stopped you from doing your job. We were working and the fact that we did we were still working. I am not trying to demean whatever you all are saying. It is not on you,” said Martinez.
Assistant County Auditor Mazuka reiterated that they had the information ready but since a contract had not yet been signed by Martinez with the County, they were unable to provide the information due to that issue. Mazuka stated that they began to send the information once the contract was signed by Martinez.
Judge Saucedo noted that the issue of an unsigned contract had not stopped the independent auditor (Martinez) from doing their work before.
Judge Saucedo complained that County Auditor Ortiz was absent at this meeting and had not notified him that he was not going to be present at the meeting. Saucedo noted that it was important for County Auditor Ortiz to have been present at this meeting.
Judge Saucedo raised a situation with the Texas Department of Agriculture which had notified Maverick County that they may de-obligate over $800,000 in funds due to Maverick County for not amending its previous 2011-2012 Audit as requested by the state agency. Saucedo asked Martinez if he had requested County Auditor Ortiz to make these amendments to the County’s 2011-2012 Audit. Martinez replied “Yes.” Judge Saucedo asked Martinez how come the amendments or adjustments requested by TDA have not been made, and Martinez replied “I don’t know.”
Judge Saucedo said “I don’t see any excuse why they haven’t been made and guess what the county is going to lose money because those adjustments haven’t been done.”
Commissioner Ruiz suggested doing a list of grants or funds that the County may lose as a result of not completing and approving its 2012-2013 Audit, as well as making the adjustments to the 2011-2012 Audit requested by TDA.
After further discussion, Commissioners Court took no formal action on Agenda Item No. 9.
